National Grid plc · LSE:NG.
National Grid — Debt Investor Presentation (February 2008)
22 slides from National Grid's debt investor presentation, February 2008
Slide 1: Canadian Investor Update
Canadian Investor Update February 2008
Slide 2: Cautionary statement
Cautionary statement This presentation contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securit
Slide 3: National Grid: a leading international electricity and gas company
National Grid… … a leading international electricity and gas company Overview Geographically diversified cash flows* Owner/operator of gas/electricity networks in UK/US UK 52% UK - Largest utility i US - 2nd largest utility ii Electricity T&D Generation Market cap – c. £20bn $4 trillion $4 trillion
Slide 4: Summary Corporate Structure
Summary Corporate Structure National Grid plc National Grid USA National Grid Holdings One plc Lattice Group plc National Grid Holdings New England Power KeySpan Corp Granite State Electric Massachusetts Electric Nantucket Electric National Grid Gas Holdings Narragansett Electric plc National Grid E
Slide 5: National Grid Gas plc: the UK's largest gas transportation company
National Grid Gas plc… … the UK’s largest1 gas transportation company Overview Owner/operator of gas networks in UK NGGas business revenues3 Regulated RAV c. £9.5bn2 Net debt c. £5.8bn at September 2007 Distribution Annual revenues c. £2.2bn3 Electricity T&D Transmission 51%Generation $433% trillion
Slide 6: National Grid Gas plc – bulk of revenues from gas transmission and distribution
National Grid Gas plc – bulk of revenues earned from gas transmission and distribution SERVICES Capacity, Network PRODUCTION Balancing SUPPLY Networks National Grid Gas 6
Slide 7: UK regulatory environment
UK regulatory environment High degree of economic regulation, under Ofgem (the Gas and Electricity Markets Authority) Subject to 5 year regulatory reviews - to set prices and form of control Under the Licence, Ofgem must have regard to the need to secure that licence holders are able to finance thei
Slide 8: National Grid Gas's businesses: gas transmission
National Grid Gas’s businesses…… …gas transmission Own and operate 4,326 miles of high pressure pipe and 26 compressor stations Four liquefied natural gas (LNG) storage facilities in the UK National Transmission System (NTS) (main pipeline down backbone of GB) Transportation of gas: NO SUPPLY Custom
Slide 9: National Grid Gas's businesses: gas distribution
National Grid Gas’s businesses…… …gas distribution Four of the eight regional gas distribution networks in the UK 82,000 miles of distribution pipelines; Distributes gas to c. 11m customers Transportation of gas: NO SUPPLY Customers are shippers suppliers Gas distribution price controls 5 yr price c
Slide 10: National Grid Gas's businesses: metering
National Grid Gas’s businesses…… …metering Owns c. 19m gas meters in Great Britain Customers are suppliers Metering price control Price cap Net Book Asset value of c. £720m at 31 March 2007 10
Slide 11: Regulated capex drives growth in RAV
Regulated capex drives growth in RAV... £1.4bn …~£5.9bn capital investment through to 2012 £ billion 6 5 4 £3.4bn £4.7bn 3 £0.9bn 2 £0.4m 1 £1.2bn 0 Transmission Distribution 2006 - 2012 Metering Delivered Plan remaining 11
Slide 12: Credit ratings
Credit ratings … Moody’s1 S&P1 Fitch1 National Grid plc Baa1/P2 BBB+/A2 BBB+/F2 National Grid Electricity Transmission plc A3/P2 A-/A2 A/F2 National Grid Gas plc A3/P2 A-/A2 A/F2 National Grid USA A3/P2 BBB+/A2 Not rated 1 Ratings from Moody’s were placed on Negative Outlook on 31st January 2008. Ra
Slide 13: Funding NGGas: debt maturities and regulated investment drive issuance
funding NGGas… ... debt maturities, pensions deficit contributions and regulated investment drive issuance Net debt to RAV expected to remain at, Along with maturities of c. £500m, or below the regulator’s assumption of means anticipated total funding of c. 60%. between £1bn and £1.3bn required by t
Slide 14: Funding the group: liquidity
funding the group… …liquidity Minimal impact from the credit crunch Limited exposure to institutions impacted by the credit crunch spreads to LIBOR have risen but rates have fallen no direct exposure to US subprime mortgage market CP markets have remained open to National Grid throughout cash balanc
Slide 15: National Grid Gas: summary
National Grid Gas… …summary Stable, regulated network utility A range credit ratings Funding required before March 2009 15
Slide 16: Appendix
Appendix nationalgrid
Slide 17: Regulated utility businesses in our corporate structure
National Grid… … regulated utility businesses in our corporate structure National Grid plc Guarantee over preference shares Baa1 / BBB+ / BBB+ National Grid USA National Grid Holdings One plc NGG Finance plc A3 / BBB+ / NR NR / BBB+ / NR KeySpan Corp Baa1 / A- / A- National Grid Lattice Group plc Ho
Slide 18: Group credit ratings
Group credit ratings Moody’s3 S&P Fitch National Grid plc Baa1/P2 BBB+/A2 BBB+/F2 National Grid Electricity Transmission plc A3/P2 A-/A2 A/F2 National Grid Holdings One plc Not rated BBB+/A2 Not rated National Grid Gas plc A3/P2 A-/A2 A/F2 National Grid Gas Holdings plc A3/--- BBB+/--- A/--- Nationa
Slide 19: Target metrics linked to credit ratings: interest cover
Target metrics linked to credit ratings… …interest cover Providing metric for the first time Interest cover (times) Indicator of balance sheet efficiency 4.25 4.25 Annual reporting at each full-year results 4.00 4.00 3.75 3.75 Interest cover 3.50 3.50 Reflects the calculation used by our credit 3.25
Slide 20: National Grid group gross debt as at September 2007
National Grid group… …gross debt* as at 30 September 2007 Debt (£’m) IFRS US Debt ($’m) National Grid plc and NGG Finance plc 4,916 National Grid USA 148 National Grid Electricity Transmission plc 3,817 KeySpan Corporation 2,376 National Grid Gas plc 5,838 Niagara Mohawk Power Corporation 1,250 Isle
Slide 21: Treasury Contacts
Treasury Contacts Malcolm Cooper (Group Tax and Treasury Director): D: +44 (0)20 7004 3340 malcolm.cooper@ngrid.com Andrew Kluth (Assistant Treasurer, Funding): D: +44 (0)20 7004 3365 andrew.kluth@ngrid.com Andy Mead (Manager, Corporate Banking): D: +44 (0)20 7004 3369 andy.mead@ngrid.com David Bona
Slide 22: nationalgrid
nationalgrid
National Grid — Debt Investor Presentation (February 2008) on 6ix