National Grid : FY23 Results Factsheet

Full Year

Results

2022/23

Investor Relations | May 2023

"This has been another year of significant progress and strategic change for National Grid with good results demonstrating excellent execution against our key priorities. A record £7.7 billion has been invested in building clean, smart energy infrastructure and maintaining world class reliability across our networks. We've supported our communities, announcing the early return of £100 million of interconnector revenues today on top of £200 million we've already committed to return, whilst giving a further £65 million to our most vulnerable customers. A further £236 million of operating cost efficiencies during the year has helped to mitigate the impact of high energy prices. As we look to the future, there has never been a more exciting time to be at the heart of the energy industry."

John Pettigrew, Chief Executive

Group financial summary full year ended 31 March 2023

Underlying results

Operating profit	Earnings per share	Dividend growth	Capital investment
£4,582m 10% 69.7p 7%	55.44p 8.77% £7,740m 8%
FY22: £4,171m	FY22: 65.3p	FY22: 50.97p	FY22: £7,188m

Underlying results from continuing operations excluding exceptional items, remeasurements, major storm costs (when greater than $100m), timing and the contribution from UK Gas Transmission and Metering, which is classified as a discontinued operation for accounting purposes.

Capital investment includes investment in JVs and NG Partners Investments (excluding equity contributions to St William property JV). Operating profit and capital investment calculated at constant currency.

Operational highlights

US

highlights

• Rhode Island sale completed Q1 2022/23
• New rate filing for KEDNY-KEDLI in April 2023
• $3.8bn approved in the US outside of rate cases

UK

highlights

• Sale of a majority stake in UK Gas Transmission and Metering completed January 2023
• 17 major transmission projects awarded by Ofgem
• RIIO-ED2Final Determinations accepted in March 2023

NGV

highlights

• Record year of utilisation at Isle of Grain LNG
• Community Offshore Wind JV submitted offtake proposals
• Viking Link: 75% cable laid, commissioning December 2023

Upgraded 5-year outlook FY22-26

	Capital investment
up to	c.£9bn
£40bn	UK Electricity Transmission
FY22-26	c.£6bn
Capital	UK Electricity Distribution
investment	c.£12bn
	New York Regulated
c. £29bn green1	c.£9bn
New England Regulated
aligning to EU taxonomy	c.£3-4bn
	NG Ventures

Group asset growth

8-10% CAGR2

EPS

6-8% CAGR2

Gearing

Credit metrics maintained within current rating thresholds

Net debt to RAV in low 70% range

Dividend

Aim to grow dividend per share in line with average annual CPIH

Our five-year financial framework includes the UK Electricity Distribution business from the date of acquisition and takes account of the sale of NECO (Rhode Island) in May 2022 and majority stake in Gas Transmission and Metering in January 2023

1. Aligned to EU Taxonomy, directly invested into the decarbonisation of energy networks
2. Compound annual growth rate FY2022-26 from an FY21 baseline. Forward years based on assumed USD FX rate of 1.2; long run CPIH and RPI inflation assumptions and scrip uptake of 25%. Reflects sale of Rhode Island (NECO) and UK Gas Transmission & Metering (UK GT&M). Assumes 40% equity interest of UK GT&M treated as held for sale from early 2023.

Financial performance segmental summary

New York

Operating profit

£874m 12%

FY22: £783m

UK Electricity Transmission

Operating profit

£1,107m 4%

FY22: £1,152m

NGV and Other

JVs post tax share

Operating profit
£521m 66% £190m 25%
FY22: £313m	FY22: £152m

New England

Operating profit

		£819m 17%			FY23 includes 2 months
				contribution from Rhode
				Island business
	FY22: £982m
	UK Electricity Distribution
	Operating profit
		£1,230m 39%		FY23 includes a full
			twelve months contribution
		FY22: £887m
	UK Gas Transmission
	Operating profit	60% stake
	£702m 4%
	40% stake
						sale completed January 2023
	FY22: £734m	now reported as Held for Sale

Note: Underlying results from continuing operations excluding exceptional items, major storms, remeasurements and timing. Operating profit presented at constant currency.

Responsible business charter1

Environment

Communities

People

Economy

Governance

01

02

03

04

05

• Net Zero for scope 1, 2 & 3 by 2050
• 37.5% reduction in scope 3 by 2034 vs 2019 baseline

• Skills development		• Safety and wellbeing		• Commit $250m in		• Achieve 50%
for 45,000 people		is our top priority		smarter energy		diversity in our
by 2030		• Achieve 50%		technology		Board
• 500,000		diversity in all our		• Cascade our values		• Ensure voices of
volunteering hours		new talent		through our supply		our people and all
by 2030		programmes by		chain		stakeholders are
		2025				heard

1. Since the launch of our Responsible Business Charter in 2020, some targets have changed to keep in line with our growing ambition, such as GHG emissions and green investment. the latest targets have been included above.

Important notice

This document 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 Securities Exchange Act of 1934, as amended. These statements include information with respect to National Grid's financial condition, its results of operations and businesses, strategy, plans and objectives. Words such as 'aims', 'anticipates', 'expects', 'should', 'intends', 'plans', 'believes', 'outlook', 'seeks', 'estimates', 'targets', 'may', 'will', 'continue', 'project' and similar expressions, as well as statements in the future tense, identify forward-looking statements. This document also references climate-related targets and climate-related risks which differ from conventional financial risks in that they are complex, novel and tend to involve projection over long term scenarios which are subject to significant uncertainty and change. Furthermore, this document, which is provided for information only, does not constitute summary financial statements and does not contain sufficient information to allow for as full an understanding of the results and state of affairs of National Grid, including the principal risks and uncertainties facing National Grid, as would be provided by the full Annual Report and Accounts, including in particular the Strategic Report section and the 'Internal control and risk factors' section on pages 253 to 256 of National Grid's most recent Annual Report and Accounts for the year ended 31 March 2022, as updated by National Grid's unaudited half-year financial information for the six months ended 30 September 2022, published on 10 November 2022. Copies of the most recent Annual Report and Accounts are available online at www.nationalgrid.comor from Equiniti Limited. Except as may be required by law or regulation, National Grid undertakes no obligation to update any of its forward-looking statements, which speak only as of the date of this document. The content of any website references herein do not form part of this document.

Further information	Angela Broad	Daniel Evans
Nicholas Ashworth
Director of Investor Relations	Senior Investor Relations Manager	Investor Relations Manager
M [phone]	M [phone]	M [phone]	investors.nationalgrid.com
[e-mail]	[e-mail]	[e-mail]
James Flanagan	Alexandra Bateman
Investor Relations Manager (US)	Investor Relations Manager
M [phone]	M [phone]
[e-mail]	[e-mail]

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