National Grid plc · LSE:NG.
National Grid — Debt Investor Presentation (May 2008)
22 slides from National Grid's debt investor presentation, May 2008
Slide 1: Investor Update Canada May 2008
Investor Update Canada May 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 UK regulated asset base** Owner/operator of gas/electricity networks in 38% gas distribution 38% electricity UK/US transmission £17.2bn UK - Largest utility i US - 2nd largest utility ii 24% gas transmission 95% of our act
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. £10.6bn2 Net external debt c. £5.6bn at March 2008 Distribution Electricity T&D Transmission 55%Generation Annual revenues c. £2.5bn3 $430% tr
Slide 6: National Grid Gas plc – bulk of revenues earned 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 Office of Gas and Electricity Markets) 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 around 4,300 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
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 c. 82,000 miles of distribution pipelines; Distributes gas to c. 11m consumers Transportation of gas: NO SUPPLY Customers are shippers suppliers Gas distribution price controls 5 yr pric
Slide 10: National Grid Gas's businesses… metering
National Grid Gas’s businesses…… …metering Owns around 18m gas meters in Great Britain Customers are suppliers Metering price control Price cap 10
Slide 11: Regulated capex drives growth in RAV
Regulated capex drives growth in RAV... £1.4bn …~£5.9bn capital investment over six years to 2012 £ billion 6 5 4 £3.4bn £3.3bn 3 £0.9bn 2 £1.4bn £0.4m 1 £1.2bn 0 Transmission Distribution 2006 - 2012 Metering Delivered (year 1) Remaining (Plan) Delivered (year 2) 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 National Grid Gas… debt maturities and regulated investment drive issuance
Funding National Grid Gas… ... debt maturities and regulated investment drive issuance Net debt to RAV expected to remain at, Including maturities, total funding of or below the regulator’s assumption of c. £500m is required by the end of March c. 60% 2009 from commercial paper, bank loans, the Euro
Slide 14: Funding National Grid Gas… liquidity
funding National Grid Gas… …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 cas
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: National Grid… 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 Senior Unsecured / Short-Term ratings Moody’s1 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 Hold
Slide 19: 2008/09 financing metric
2008/09 financing metric Interest cover 4.00 4.00 Reflects the calculation used by our credit rating agencies 3.75 3.75 3.2x for the year 3.50 3.50 Aim to manage within a range of 3.0 – 3.5x 3.25 3.25 3.00 3.00 2.75 2.75 2.50 2.50 2005/06 2006/07 2007/08 Target range Interest cover 19
Slide 20: Funding the group
Funding the group … gross* and net external debt as at 31st March 2008 Debt (£m) IFRS National Grid plc and NGG Finance plc 5,277 National Grid Electricity Transmission plc 3,864 National Grid Gas plc 6,033** National Grid Grain LNG 288 Total UK 15,462 Total US (£1=$1.9845) 4,451 Other (3) Total IFR
Slide 21: Treasury Contacts
Treasury Contacts Malcolm Cooper (Group Tax and Treasury Director): D: +44 (0)20 7004 3340 [email protected] Andrew Kluth (Assistant Treasurer, Funding): D: +44 (0)20 7004 3365 [email protected] Andy Mead (Manager, Corporate Banking): D: +44 (0)20 7004 3369 [email protected] David Bona
Slide 22: nationalgrid
nationalgrid
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