Slide 1: At the heart of the clean energy transition
At the heart of the clean energy transition 2024/25 Full-year Results Presentation 21 May 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by SSE plc solely for use on 21 May 2025 during the presentation of the Company’s full year results for the period to 31 March 2025. This presentation may not be disclosed or published, nor used by any other person or entity, for any purpose other than
Slide 3: Industry leading investment in safety
Industry leading investment in safety Ongoing commitment to improvement Enhancing safety for contract partners Combined total Combined TRIR1 16 0.5 recordable injuries 15 0.45 Contractor Hours (millions) 78 0.4 14 69 0.20 0.35 13 0.3 0.16 12 0.25 0.2 0.25 11 0.15 10 0.1 9 0.05 8 0 FY24 FY25 FY24 FY2
Slide 4: Agenda
Agenda Full-year Results to 31 March 2025 • Part 1: Overview • Part 2: Financial Results • Part 3: Operating Review • Part 4: Summary Q&A 3
Slide 5: SSE plc: Delivering value creation
SSE plc: Delivering value creation Strong financial and strategic performance over the year, with disciplined growth driving returns FY25 EBIT Networks asset value2 Renewables volumes3 £2,419m 20 ~90% from Networks and 20 Renewables 18 18 16 ~20% CAGR ~15% CAGR 16 FY25 Capex 14 £2.9bn 14 ~20% higher
Slide 6: An evolving investment programme
An evolving investment programme Updated capital allocation reflects a disciplined response to macro-environment 5-year investment plan to 2027 Upweighting in regulated networks ~£20.5bn ~£2.5bn ~60% Networks ~£0.5bn ~£17.5bn1 ~£17.5bn to FY271 Other ~40% 2024 Discipline Networks 2025 NZAP Plus in m
Slide 7: Increasingly visible earnings growth
Increasingly visible earnings growth Regulatory earnings visibility Confidence in sustainable growth Increasing EBITDA ultimately inflation linked1 Earnings bridge to FY27 EPS target2 175 - 200p RAV 70% Volume growth Capacity growth payments 160.9p 65% 60% FY25a FY26e FY27e FY25a Flexibility Renewab
Slide 8: SSE PLC: At the heart of the clean energy transition
SSE PLC: At the heart of the clean energy transition Renewables Flexibility Networks ~2GW ~7GW ~£20bn2 ~20% 6.2GW Gross RAV CAGR ~1GW Installed capacity ~4GW ~£8bn ~40% of the UK’s Conventional underground FY22a Delivered Under FY27e gas storage capacity FY22a FY27e construction Transmission Distrib
Slide 9: Agenda
HIGHLY CONFIDENTIAL DRAFT PREPARED FOR CONTINGENCY AND DISCUSSION PURPOSES ONLY Agenda Full Year Results to 31 March 2025 • Part 1: Overview • Part 2: Financial Results • Part 3: Operating Review • Part 4: Summary Q&A 8
Slide 10: Strong financial performance over the year
Strong financial performance over the year Disciplined investment in networks and renewables drives sustainable earnings growth ~90% EBIT contribution from networks and renewables ~90% invested in networks & renewables 3,500 206 ~35% ~35% 3,000 367 Transmission Renewables 2,500 2,426 44 2,419 (624)
Slide 11: Financial Results – Networks
Financial Results – Networks Adjusted operating profit Operating profit review 1,059 Underlying earnings growing in line with 53% investment programme 1,000 800 Distribution revenues benefit from multi-year 691 cost-inflation catch-up 600 Transmission revenues negatively impacted £m by timing differ
Slide 12: Financial Results – Renewables
Financial Results – Renewables Adjusted operating profit Operating profit review New capacity additions, principally Viking (443MW) 1,039 which delivered a 50% load factor in Q4 FY25 1,000 25% Full year contribution in offshore wind of 833 Seagreen (527MW), delivering a 49% load factor 800 across FY
Slide 13: Financial Results – Flexibility
Financial Results – Flexibility Adjusted operating profit1 Operating profit review Smaller margin (“spark spread”) available in the market and lower level of volatility, in line with 1,000 guidance 835 800 Gas Storage assets loss-making amid unusual 75% market conditions 600 £m Lower Capacity Market
Slide 14: Financial Results – Other businesses
Financial Results – Other businesses Adjusted operating profit1 Operating profit review 120 111 Energy Customer Solutions has seen continued 66% margin improvement as wholesale markets 100 stabilise SSE Energy Markets, Corporate and Neos 80 Networks’ results are similar to the prior year 67 SSE Ente
Slide 15: Financial Results – Net income and dividend
Financial Results – Net income and dividend Adjusted net income (£m)1 Net income review FY25 FY24 Higher adjusted net finance costs owing to Total operating profit 2,419.2 2,426.4 higher level of debt and interest on Seagreen Net finance costs (281.0) (225.5) project finance Current tax charge (296.
Slide 16: Balance Sheet – Strength and stability
Balance Sheet – Strength and stability FY22 FY24 FY25 Net debt 4.0x 3.0x 3.2x EBITDA1 £10.2bn £9.4bn £8.6bn Adjusted Net debt and Hybrid Capital FY24 Cash flow from Working capital Net Dividend and Financing FY25 FY22 FY24 operations and other investment hybrid coupon FY25 Remaining consistent with
Slide 17: Fully-funded plan with multiple future options
Fully-funded plan with multiple future options Fully-funded plan to 2027 Significant additional funding available ~£1bn FY26-FY27 Disposals3 Dividends1 ~£3bn Further net debt capacity with ND/EBITDA expected to ~£4.5bn FY26-FY27 Net debt4 be ~4x by FY27, well within strong investment grade Interest,
Slide 18: Outlook – Discipline and efficiency in action
Outlook – Discipline and efficiency in action Disciplined approach to capital allocation Focus on efficiency and competitiveness Hurdle rates for new energy projects1,3 Updated to >12% Organisational competitiveness (formerly >11%) 300–500bps2 - Review and simplify organisational design 200–400bps2
Slide 19: Outlook – Refining medium-term guidance
Outlook – Refining medium-term guidance Adjusted EBIT FY25 Actuals FY26 Expectations FY27 Expectations Significantly higher than FY25 Significantly higher than FY26 Transmission £323m Expected to be more than 1.5x higher reflecting Reflecting increased allowed revenue increased allowed revenue Netwo
Slide 20: Outlook – Enhanced clarity on FY27 earnings
Outlook – Enhanced clarity on FY27 earnings Expected earnings drivers to FY27 EPS Key FY27 building blocks • ~10p EPS from secured capacity payments, which increase by ~£150m across flexible thermal and hydro 175 - 200p ~50% renewables assets in FY27. ~40% volume RAV increase growth • ~40% Renewable
Slide 21: Agenda
Agenda Full Year Results to 31 March 2025 • Part 1: Overview • Part 2: Financial Results • Part 3: Operating Review • Part 4: Summary Q&A 20
Slide 22: An exciting platform for strategic growth
An exciting platform for strategic growth 1 3 Societal trends of net zero Balanced portfolio of capabilities, and energy resilience assets and businesses Networks Renewables Flexibility 2 Integrated UK and Irish clean Group energy champion Focus on creating sustainable Strong pipeline of options Res
Slide 23: Ongoing regulatory advancements
Ongoing regulatory advancements Core UK and Ireland Markets continue to deliver regulatory progress … Progress made over last 12 months With further key decisions ahead Nov 24 Feb 25 Apr 25 June 25 H2 25 • UK Renewables • Ofgem Long Duration Electricity Storage • NESO Clean Power Application window
Slide 24: Transmission RAV growth upgraded
Transmission RAV growth upgraded FY25 delivery drives confidence in growth … … for world’s fastest-growing transmission network • Final consent granted for Argyll and Kintyre £12 - 13bn1 ~25% • Fort Augustus substation approved Gross RAV CAGR • Eastern Green Link 2 (EGL 2) enters construction £4.2bn
Slide 25: RIIO-T3 – The need for a financeable framework
RIIO-T3 – The need for a financeable framework Ambitious RIIO-T3 Business Plan …1 ~£16bn confirmed ASTI and LOTI projects • Spend in period if projects consented as targeted • Required in any future generation scenario ~£9bn future potential projects, delivery timing to be confirmed • Timed to deliv
Slide 26: ASTI and LOTI: Major consents submitted
ASTI and LOTI: Major consents submitted Final ASTI and LOTI consent applications to be submitted by the summer following one of the biggest public consultations Scotland has ever seen, with over 230 public events • Consent received for Argyll, Orkney and EGL2 projects allowing projects to progress i
Slide 27: Distribution growth – now and to 2050
Distribution growth – now and to 2050 Building blocks to unlock multi-decade investment opportunity falling into place ~£7bn1 2050 £5.7bn ED3 framework £4.1bn emerging Strategic planning to 2050 under way Major NIC report Network fit FY22a FY25a FY27e NESO regional energy for net zero FY22a FY25a FY
Slide 28: Market reform – Portfolio resilience
Market reform – Portfolio resilience GB Zonal pricing concerns SSE GB operational locations – 2027e1 SSE’s strategic mitigants Case for zonal based on No impact on expected outdated Networks Intermittent – 2.1GW Transmission investment strategic plans Flexible – 2.2GW Grandfathering arrangements hig
Slide 29: Renewables – Disciplined investment
Renewables – Disciplined investment Disciplined growth Earnings stability Investment optionality ~7GW Offshore wind ~20% Fully Onshore wind ~10% ~50% 5GW Ultimately merchant Battery ~10% ~50% contracted Pumped storage ~19 Solar ~18 TWh ~15% GW ~30% Merchant with FY25a Dogger A&B Onshore / FY27e ROCs
Slide 30: Renewables – Excellence in operations
Renewables – Excellence in operations Maximising value from operational fleet Focus on delivery of premium assets GB Renewables merchant volumes and prices hedged1 Continuous execution of deliveries2 Expected volumes (TWh) 20.0 MW 100 Hedge price (£/MWh) 15.0 80 Yellow River Onshore 101 FY26 10.0 60
Slide 31: Renewables – Momentum on Dogger Bank
Renewables – Momentum on Dogger Bank 55 turbines installed1 on first phase of world’s largest offshore wind farm Dogger Bank A turbine installation profile Construction progressing Actual Forecast 100 H2 2025 completion Winter Site shutdowns Winter Remains target for the 1.2GW 80 Dogger Bank A wind
Slide 32: Thermal flexibility – fully contracted to 2029
Thermal flexibility – fully contracted to 2029 Securing capacity market revenue Making selective investments ~£200m ~£400m Average Average Tarbert Biofuel OCGT – 300MW • Expected capital investment of ~ €300m • €335m revenue already secured under FY24a FY25a FY26e FY27e FY28e FY29e 10-year capacity
Slide 33: Customers – Route to market optionality
Customers – Route to market optionality Routes to market Enabling for cleaner energy distributed energy Decarbonisation partner of choice Strategic Advanced partnerships energy solutions 32
Slide 34: Agenda
Agenda Full Year Results to 31 March 2025 • Part 1: Overview • Part 2: Financial Results • Part 3: Operating Review • Part 4: Summary Q&A 33
Slide 35: SSE PLC: At the heart of the clean energy transition
SSE PLC: At the heart of the clean energy transition Renewables Flexibility Networks ~2GW ~7GW ~£20bn2 ~20% 6.2GW Gross RAV CAGR ~1GW Installed capacity ~4GW ~£8bn ~40% of the UK’s Conventional underground FY22a Delivered Under FY27e gas storage capacity FY22a FY27e Construction Transmission Distrib
Slide 36: Thank you
Thank you For more information, contact: ir@sse.com
Slide 37: Appendix
Appendix Full Year Results to 31 March 2025 • Sustainability • Financial Results • Networks • Renewables • Thermal 36
Slide 38: Recent updates to ESG ratings
Sustainability Recent updates to ESG ratings rating Score range Sector Rating provider SSE score (minimum to maximum) ranking AAA Top 11 percent CCC AAA (Jan 2025) 71 89th percentile 0 100 (Mar 2025) Corporate Sustainability Assessment Severe risk Negligible risk 21.8 88th percentile (medium risk) (
Slide 39: Pathway To Net Zero
Sustainability Pathway To Net Zero SSE Decarbonisation Levers: • In light of the UK Government Clean Power 2030 Action Plan (CP30), SSE has outlined two scenarios for carbon emission in 2030/31. • These scenarios represent different pathways for the phased reduction in unabated gas generation and it
Slide 40: Updated Net Zero Transition Plan on a Page
Sustainability Updated Net Zero Transition Plan on a Page More detail will be provided in SSE’s updated Net Zero Transition Plan, which will be published in June 39
Slide 41: FY25 Carbon Performance
Sustainability FY25 Carbon Performance Reduce scope 1 GHG emissions Reduce absolute intensity of GHG emissions generated electricity 218gCO2e/kWh from use of products 1.95MtCO2e by 80% by 2030, 29% reduction sold by 50% from a from a 2017/18 2017/18 base year 23% reduction base year (205gCO2e/kWh as
Slide 42: 2030 Goal Performance
Sustainability 2030 Goal Performance 1 Includes pumped storage, battery energy 1 storage systems, biomass and constrained-off wind in GB. More detail will be provided in SSE’s updated Net Zero Transition Plan, which will be published in June 41
Slide 43: Evolving five-year investment programme to FY27
Financial Results Evolving five-year investment programme to FY27 Previous Plan Updated Plan Delta Investment £20.5bn £17.5bn £(3.0)bn - Transmission £7.5bn £7.0bn £(0.5)bn - Distribution £3.5bn £3.5bn - - Renewables £7.0bn £5.5bn £(1.5)bn - Thermal / Other £2.5bn £1.5bn £(1.0)bn EPS – Range / CAGR
Slide 44: FY25 Financial Results - Overview
Financial Results FY25 Financial Results - Overview Adjusted Reported FY25 FY241 FY25 FY24 Operating Profit - £m 2,419.2 2,426.4 1,962.2 2,608.2 Net Finance (Costs) / Income - £m (281.0) (225.5) (111.3) (113.1) Profit Before Tax - £m 2,138.2 2,200.9 1,850.9 2,495.1 Taxation (charge) / credit - £m (2
Slide 45: FY25 Financial Results - Segments
Financial Results FY25 Financial Results - Segments Adjusted Operating Profit - £m FY25 +/-% FY241 SSEN Transmission 322.5 (23)% 419.3 SSEN Distribution 736.0 171% 272.1 Regulated Networks 1,058.5 53% 691.4 SSE Renewables 1,038.8 25% 833.1 SSE Thermal 248.5 (67)% 752.5 Gas Storage (37.1) (145)% 82.8
Slide 46: FY25 Financial Results – Adjusted & Reported
Financial Results FY25 Financial Results – Adjusted & Reported Reconciliation from adjusted to reported operating profit Other reconciling items IFRS 9 Fair Value movements reflects net 2,700 movement on energy 2,419.2 derivatives, which have 2,200 (79) (78.5) decreased to a £3.9m net 1,962.2 deriva
Slide 47: SSEN Transmission – EBIT waterfall
Financial Results SSEN Transmission – EBIT waterfall SSEN Transmission adjusted EBIT (75% SSE share) Operating profit review Underlying earnings growing in line 550 with investment programme 500 61 450 Benefit from “full expensing” 419.3 accelerated tax allowances netted off 400 3 revenue including
Slide 48: SSEN Distribution – EBIT waterfall
Financial Results SSEN Distribution – EBIT waterfall SSEN Distribution adjusted EBIT Operating profit review 900 Multi-year cost inflation catch-up reflected 800 67 in FY25 revenues, as tariffs set in advance 457 736.0 (41) 700 (18) Small over-recovery expected versus an under-recovery in the prior
Slide 49: SSE Renewables – EBIT waterfall
Financial Results SSE Renewables – EBIT waterfall SSE Renewables adjusted EBIT Operating profit review 1,100 19 1,038.8 New capacity additions, principally Viking 1,050 87 (11) (443MW) which delivered a 50% load factor in 1,000 Q4 FY25 950 111 Full year contribution in offshore wind of 900 Seagreen
Slide 50: SSE Renewables – EBIT And EBITDA
Financial Results SSE Renewables – EBIT And EBITDA Split by technology, on SSE adjusted basis Adjusted EBITDA £m FY25 FY24 Conventional hydro 385.4 340.7 Pumped storage 75.7 58.3 Onshore wind 491.1 390.8 Offshore wind 412.3 328.4 Solar & Battery (10.2) (10.6) Total SSE Renewables 1,354.3 1,107.6 Adj
Slide 51: SSE Thermal – EBIT waterfall
Financial Results SSE Thermal – EBIT waterfall SSE Thermal adjusted EBIT Operating profit review 900 835.3 Smaller margin (“spark spread”) available 800 in the market and lower level of volatility, in line with guidance 700 Gas Storage assets loss-making amid 600 difficult market and regulatory cond
Slide 52: Energy Customer Solutions – EBIT waterfall
Financial Results Energy Customer Solutions – EBIT waterfall SSE Energy Customer Solutions adjusted EBIT Operating profit review 250 Improvement in SSE Airtricity margin reflecting normalisation of wholesale market 200 8 192.1 Lower profitability in Business Energy 53 with focus being new customer b
Slide 53: Balance Sheet – Maturity of Debt
Financial Results Balance Sheet – Maturity of Debt Long term debt maturity profile1 3 2.5 2 1.5 1 0.5 0 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34+ Bonds and Private Placements Hybrid Capital (First Call Date) 1. Excludes short term commercial paper (£891m outstanding as at 31 March 2025) and RCF
Slide 54: Income Statement Adjustments
Financial Results Income Statement Adjustments 2024/25 EBITDA (£m) EBIT (£m) EPS (p) Comments Reported 2,738.3 1,962.2 108.2 In line with UK adopted IAS Movement on derivatives 78.5 78.5 5.6 Not relevant to CY performance Exceptional items / deferred income 295.6 309.7 25.4 Majority of which is non-
Slide 55: Net Debt Adjustments
Financial Results Net Debt Adjustments 31 March 2025 31 March 2024 Comments Unadjusted Net Debt (9,513.9) (8,097.8) In line with UK adopted IAS 100% of Hybrids included within SSE metric, compared to 50% Add: Hybrid Equity 1,882.4 1,882.4 considered by ratings agencies (Less): Minority Interest Net
Slide 56: Net Debt / EBITDA Calculation
Financial Results Net Debt / EBITDA Calculation £m FY25 FY24 Adjusted Net Debt & Hybrid Capital 10,181 9,436 Adjusted EBITDA 3,349 3,296 Beatrice (at 94% gearing) (121) (101) Seagreen (at 27% gearing) 2 (30) (79) Dogger Bank A (at 68% gearing) 3 (2) (-) Less: EBITDA relating to project finance (153)
Slide 57: RIIO-2 Price Controls - Parameters
Networks RIIO-2 Price Controls - Parameters SSEN Transmission SSEN Distribution RIIO-T2 Agreement RIIO-ED2 Agreement Comment Apr 2021-Mar 2026 Apr 2023-Mar 2028 Cost of Equity (real) 4.25% (FDs); 4.74% (2025) 5.23% (FDs); 5.46% (2025) Adjusted annually for risk-free rate Adjusted annually for iBoxx
Slide 58: SSE Networks year-on-year RAV Bridge
Networks SSE Networks year-on-year RAV Bridge Regulated Asset Value - £m (nominal) Distribution Transmission (gross) FY23 Closing RAV 4,720 4,836 FY23 Timing Adjustment (13) (26) Slow money 631 871 Inflation 342 267 Depreciation (379) (272) FY24 Closing RAV1 5,301 5,676 FY24 Timing Adjustment (43) 3
Slide 59: RIIO-T2: Revenues published by Ofgem
SSEN Transmission RIIO-T2: Revenues published by Ofgem As per 31 January 2025 published PCFM “Recovered Revenue” “Tariff set in Jan 2025” SSEN Transmission Revenue (Gross) Price base FY22 FY23 FY24 FY25 FY26 Fast money £m 18/19 - - - - 336.5 Depreciation £m 18/19 - - - - 260.3 Return on RAV £m 18/19
Slide 60: Major Transmission projects
SSEN Transmission Major Transmission projects Routes shown here for illustrative purposes only. Reinforcements not yet under construction are subject to planning approvals, detailed consultation and environmental assessments to help inform route and technology options. TCSNP2 refers to Beyond 2030 N
Slide 61: RIIO-ED2: Revenues published by Ofgem
SSEN Distribution RIIO-ED2: Revenues published by Ofgem As per 30 January 2025 published PCFM Revenue Recovery outturn + forecast Tariff set in 2024 Allowed Revenue SSEN Distribution Revenue Price base FY24 FY25 FY26 FY27 FY28 Fast money £m 20/21 - - - 267.0 253.0 Depreciation £m 20/21 - - - 278.5 2
Slide 62: SSE Renewables – Current Operations
SSE Renewables SSE Renewables – Current Operations Technology Geography Net Capacity (MW) Location of UK and Ireland operations Scotland 762 England 252 Total Offshore Wind 1,014 Scotland 1,660 England 68 Northern Ireland 117 Republic of Ireland 581 Southern Europe 28 Total Onshore Wind 2,454 Pumped
Slide 63: SSE Renewables – Pipeline And Prospects
SSE Renewables SSE Renewables – Pipeline And Prospects LATE-STAGE EARLY-STAGE IN CONSTRUCTION SECURED PIPELINE FUTURE PROSPECTS DEVELOPMENT DEVELOPMENT MW MW MW MW MW Strathy South 208 Cloiche 130 GB 185 GB 732 GB ~1,000 Yellow River 101 Bhlaraidh Ext. 90 Ireland 854 Ireland 991 Ireland ~300 ONSHORE
Slide 64: Capacity Market – SSE Contracted Capacity
SSE Renewables & Thermal Capacity Market – SSE Contracted Capacity GB Capacity Market Ireland Capacity Market Clearing Price Renewables Thermal GB Total Clearing price Renewables Thermal IRL Total (£/Kw) (MW) (MW) £m (€/MW) (MW) (MW) €m Multi year 3 825 - - T-4 £18.00 890 3,075 71.4 €47,820 29 570 2