National Grid Final Results

17 May 2012

National Grid plc

Results for the year ended 31 March 2012

Steve Holliday, Chief Executive, said: "We delivered another year of good underlying financial and operating performance despite the impact of some exceptional weather in the US. At the same time we made further progress developing the business consistent with our strategic priorities, maintaining an appropriate spread and balance of activities to support both long-term growth and dividends."

Good performance in 2011/12

·     Profit before tax1 up 5%

·     Operating profit up 9% before currency movements, timing and major US storms2

·     Continued UK outperformance

·     Improved US returns - 2011 regulated return on equity up 50bp to 8.8%

·     Earnings per share up 1% to 51.3p, up 16% excluding timing and major storm impacts

·     Recommended full year dividend up 8% to 39.28p reflecting final year of current policy

Good strategic progress

·     £3.4bn of capital investment, contributing to £1.6bn growth in regulated assets

·     Submitted new 8 year UK investment plans, including over £31bn of forecast capital investment

·     Agreed one year rollover price control for UK transmission activities

·     Implemented new US operating model. $200m run rate cost reduction target achieved

·     Submitted new rate filings in upstate New York and Rhode Island in April 2012

·     Balance sheet benefitted from strong cash generation and small asset disposals. As a result, net debt up only £0.9bn to £19.6bn

Positive outlook for 2012/13

·     Sustain focus on improving returns and securing appropriate regulatory outcomes

·     Dividend growth of 4% targeted in new one year policy

Financial results for continuing operations

Steve Holliday added: "In the UK, we submitted comprehensive business plans for the essential infrastructure investment needed by our UK customers in our Transmission and Distribution businesses, incorporating the results of our significant stakeholder consultation.

In the US, our new operating model, with its regional structure and strong regulatory and consumer focus, helped us deliver our cost saving target and make essential improvements ahead of the new rate filings in upstate New York and Rhode Island.

On the back of a solid all round performance in 2011/12, and reflecting the revenue growth that our regulatory arrangements provide, we maintain a positive outlook for 2012/13, and expect to deliver another year of good operating and financial performance."