National Grid Plc · LSE:NG.
National Grid — FTSE 100 Conference (July 2015)
21 slides from National Grid's conference presentation, Jul 1, 2015
Slide 1: FTSE 100 Conference
FTSE 100 London | Wednesday, 1 July 2015 Conference
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 Securi
Slide 3: National Grid
National Grid One of the world’s largest public owned utilities focused on transmission and distribution activities in electricity and gas in both the UK and US 3
Slide 4: Investment proposition
Investment proposition US We aim to be a low risk business focused on generating shareholder value through both dividends and asset/equity growth by investing in essential assets under predominately regulated market conditions to service UK long-term sustainable consumer-led demands 4
Slide 5: National Grid principal UK businesses
National Grid principal UK businesses Electricity generators Gas producers and importers National Grid National Grid Electricity Transmission Gas Transmission Regional electricity Gas distribution National Grid distribution networks networks Gas Distribution Energy suppliers Commercial and domestic
Slide 6: National Grid principal US businesses
National Grid principal US businesses Electricity generators Gas producers and importers NG Electricity Other electricity Gas transmission Transmission transmission National Grid National Grid Electricity Distribution Gas Distribution Commercial and domestic customers 6
Slide 7: National Grid regulated asset value split
National Grid One of the world’s largest public owned utilities focused on transmission and distribution activities in electricity and gas in both the UK and US UK 69% US 31% Electricity 31% Gas 15% Gas 23% 4% Gas 14% Elec. 13% Transmission (and other US FERC assets) Distribution Additional business
Slide 8: Attractive risk profile
Attractive risk profile Stable regulatory and political environments Minimal commodity exposure Protection from many macro economic factors 8
Slide 9: Headline numbers
Headline numbers 40.6bn ~60/40 £ £ 3.9bn total Group debt/equity operating profit £3.7bn assets 54.0p 31 March 2015 split 31 March 2015 42p 2014/15 11.8% 42.87p 58.1p Group return Dividend per share earnings per on equity £1.6bn cash* share 2014/15 2014/15 2014/15 Note: Adjusted results, excluding e
Slide 10: Stable regulatory environments
Stable regulatory environments Revenues linked to asset base size - new investment grows asset base Incentive based regulation - opportunity for enhanced returns 10
Slide 11: Sustainable
Sustainable Investment case underpinned by Appropriate balance of debt responsible way we do business and equity financing 11
Slide 12: Dividend
Dividend 42.87p ~ %5 ~£ 1.6bn £54.0 3.7bnp 2014/15 dividend 42 p current dividend cash dividend excluding scrip takeup per share yield Continue 3.5bn to grow3the % dividend atInvestment least in line with RPI inflation for the foreseeable future growth 12
Slide 13: Growth
Growth £3.5bn £54.0 3.7bnp 2014/15 investment ~ % 5 p expected* asset growth p.a 42 • assuming UK retail price inflation of 3% p.a. 13
Slide 14: Key performance measure
Key performance measure 11.6% 3-year average return on equity supports Cash Asset growth of Stable balance sheet dividend ~ 5% p.a. 14
Slide 15: Portfolio and capital allocation
Portfolio and capital allocation Portfolio evolution Current portfolio of business: Delivers appropriate balance of yield and growth 54.0 3.7bnp Maintains strong balance £sheet with minimal scrip financing Average over [3] years 40bps increase Supports growing dividend Strong performance
Slide 16: 2014/15 performance: strong operational performance
2014/15 performance strong operational performance UK RoE 13.7% US RoE 8.4% Group RoE 11.8% 16
Slide 17: 2014/15 performance: healthy balance sheet
2014/15 performance strong operational performance maintained healthy balance sheet Sustained financial metrics consistent with A- credit rating 17
Slide 18: 2014/15 performance: asset growth
2014/15 performance strong operational performance maintained healthy balance sheet ~3% asset growth record US investment progressed additional opportunities 18
Slide 19: Expectations
Expectations UK US cost efficiencies regulatory filings Continued 3.5bn investment 3% and growth 19
Slide 20: Summary
Summary Strong operating performance Balanced portfolio with strategic growth opportunities Healthy balance sheet Growing dividend 20
Slide 21: Contacts
Contacts Investor Relations Andy Mead +44 (0)20 7004 3166 +44 (0)7752 890787 (m) Michael Ioanilli +44 (0)20 7004 3006 +44 (0)7789 878784 (m) Richard Foster +44 (0)20 7004 3169 +44 (0)7768 294017 (m) Victoria Davies +44 (0)20 7004 3171 +44 (0)7771 973447 (m) George Laskaris +1 718 403 2526 +1 917 375