National Grid Plc · LSE:NG.

National Grid — Debt Investor Presentation (November 2017)

20 slides from National Grid's debt investor presentation, Nov 9, 2017

  1. Slide 1: 2017/18 Half Year Results Debt Investor Update

    2017/18 Half Year Results Debt Investor Update 9 November 2017 Bring Energy to Life

  2. 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

  3. Slide 3: Financial highlights

    Financial highlights 1 OPERATING PROFIT 1 OPERATING PROFIT CAPITAL INVESTMENT 3 Excluding Timing £1.3bn £1.4bn £2.0bn HY17 £1.4bn HY17 £1.3bn HY17 £1.9bn EARNINGS PER SHARE EARNINGS PER SHARE DIVIDEND PER SHARE Excluding Timing 18.5p 20.4p 15.49p HY17 25.0p2 HY17 22.2p2 HY17 15.17p 1 Adjusted result

  4. Slide 4: Safety and reliability remain core

    Safety and reliability remain core  On track to achieve world class performance  Severe storms in our service areas − 400,000 customers affected − Strong response provided  UK System Operator prepared for winter − Capacity market auction driving increased winter margins − 10.3% de-rated capacity

  5. Slide 5: US rate filings support growth and performance

    US rate filings support growth and performance  Niagara Mohawk (NIMO) in rate case settlement discussions New York Rate Base  NIMO represents over 50% of New York rate base As at March 2017 KEDNY  New rates expected from April 2018 New rates Jan 2017  70% of US rate base will have new rates NIMO

  6. Slide 6: UK focus on efficiency and innovation

    UK focus on efficiency and innovation  Majority of UK GD sale proceeds returned − £3.2bn returned via special dividend − 60% of £0.8bn share buyback complete to date  Innovation and efficiency driving savings for customers − £460m of savings generated under RIIO St Fergus UK’s largest import  Sys

  7. Slide 7: NG Ventures progressing well

    NG Ventures progressing well IFA2 Nemo Link North Sea Link IFA 2 Shetland link Completed the first Norwegian civil site Design and Awarded preferred bid cable laying activities works completed permitting stage status for innovative new solution  1 GW, 140km link  1.4GW, 720km link  1GW, 240km lin

  8. Slide 8: Financial Review

    Financial Review 8 2017/18 Half Year Results November 2017 8

  9. Slide 9: Mechanics of changes in inflation and interest

    Mechanics of changes in inflation and interest UK US Inflation Inflation  £19bn asset base, partially hedged by £7bn RPI linked debt 100bps inflation  Nominal regulation allows  Inflation deferred into RAV to keep consumer cost lower in short increase gives: assumed in-year inflation term £19bn r

  10. Slide 10: Interest, tax and earnings

    Interest, tax and earnings 2 FINANCE COSTS EFFECTIVE TAX RATE EARNINGS £527m 20.8% £654m 23% higher than HY171 at £(152)m HY17 £885m1  Higher RPI  Tax rate 200bps lower than  3,539m weighted average  Effective interest rate of HY171 shares 4.7%  Tax charge £79m lower than  18.5p/share HY17 1 T

  11. Slide 11: Cash flow and Net debt

    Cash flow and Net debt Net debt (£bn) 25.0 £m Period ended 30 September 2017 (1.2) 1.4 Operating profit 1,259 23.0 Underlying FX/other 3.6 Depreciation & amortisation 762 business 23.1 requirements 21.0 Pensions (124) Working capital & other 125 19.0 GD Net operating cash flow 2,022 Proceeds 19.3 re

  12. Slide 12: Priorities & Outlook

    Priorities & Outlook 12 2017/18 Half Year Results November 2017 12

  13. Slide 13: UK business focused on regulatory outcomes

    UK business focused on regulatory outcomes Hinkley Seabank consultation  Committed to providing necessary network connections  Significant project with estimated costs of almost £1bn  Responded to Ofgem consultation  Regulatory clarity will enable timely delivery of the connection  Ofgem decisi

  14. Slide 14: UK business focused on regulatory outcomes

    UK business focused on regulatory outcomes RIIO T2  Ofgem open letter kick started lengthy review to 2021 RIIO T2 Timeline  We share the principle of putting the customer at the 2017 2018 2019 2020 2021 heart of decisions Framework review  Framework decision in 2018  RIIO T2 framework should ens

  15. Slide 15: US rate case programme to continue

    US rate case programme to continue  Niagara Mohawk engaged in settlement discussions with new rates US Rate Base expected in April 2018 As at March 2017 MA Electric  MA Gas and Rhode Island to be filed this month FERC New rates Formula rates Oct 2016 − 20% of US rate base − To be filed after a lon

  16. Slide 16: Growing pipeline of projects for NG Ventures

    Growing pipeline of projects for NG Ventures Further UK interconnector opportunities  1.4GW Viking Link to Denmark  Investment decision in 2018 US development opportunities  Competitive transmission to bring onshore and offshore renewables − 1.2GW Granite State interconnector between Canada to Ne

  17. Slide 17: Debt Funding

    Debt Funding 17 2017/18 Half Year Results November 2017 17

  18. Slide 18: Debt Funding

    Debt Funding  So far in 2017/18 we have raised over £1bn in the capital markets, including: − National Grid North America Inc. 1% €500m due 2024 − Boston Gas 3.15% $500m due 2027  Focus on US OpCo funding in remainder of 2017/18  UK operating companies not expected to issue during the rest of the

  19. Slide 19: Summary

    Summary  Good progress across the Group  Clear priorities moving forward  Strong fundamentals that underpin long-term value creation − High quality asset portfolio − Strong balance sheet − Access to solid growth opportunities that underpin growth and yield − Excellent teams that are motivated to

  20. Slide 20: Q&A

    Q&A 20 2017/18 Half Year Results November 2017 20

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