#130 JUNE 2020 HALF YEAR RESULTS TUESDAY, 25 AUGUST 2020 INFRASTRUCTURE FOR THE FUTURE sparkinfrastructure#2INFRASTRUCTURE FOR THE FUTURE SPARK INFRASTRUCTURE - AT A GLANCE ASX-listed owner of leading essential services infrastructure $3.8bn $6.6bn $18bn MARKET CAPITALISATION(1) S&P/ASX 100 REGULATED AND CONTRACTED ASSET BASE (PROPORTIONAL) TOTAL ELECTRICITY NETWORK ASSETS (2) Distribution Victoria Power Networks and SA Power Networks 49% SPARK INFRASTRUCTURE OWNERSHIP $10.89bn REGULATED ASSET BASE Transmission TransGrid (NSW) 15% SPARK INFRASTRUCTURE OWNERSHIP $7.32bn REGULATED AND CONTRACTED ASSET BASE Renewables Bomen Solar Farm (NSW) 100% SPARK INFRASTRUCTURE OWNERSHIP $0.18bn CONTRACTED ASSET BASE SUPPLYING 5.0m+ HOMES AND BUSINESSES OVER 808 5,400 EMPLOYEES 80% SKI PROPORTIONAL ASSET BASE (3) 17% SKI PROPORTIONAL ASSET BASE(3) 3% WAGGA WAGGA, NSW SKI PROPORTIONAL ASSET BASE(3) (1) As at 21 August 2020. Balance sheet and other information as at 30 June 2020 (2) Spark Infrastructure has proportional interests in $18bn of total electricity network and contracted generation assets (3) Pro forma Spark Infrastructure I Investor Presentation | August 2020 2#3INFRASTRUCTURE FOR THE FUTURE FY2020 DISTRIBUTION GUIDANCE RECONFIRMED Robust cash flow from high quality network businesses ①Adjusted look- through EBITDA(1) $439m Up 3.6% HY2020 Distribution 7.0cps Regulated asset base(1) $6.3bn Up 3.5%(6) Contracted asset base (2) $0.3bn Up 123.5% (6) FY2020 Distribution guidance reconfirmed (3) 13.5cps at least (1) On an aggregated proportional basis to Spark Infrastructure (2) Includes Bomen Solar Farm and TransGrid CAB on a proportional basis to Spark Infrastructure (3) Subject to business conditions (4) Represents increase in RCAB and Bomen Solar Farm acquisition and construction costs (5) Funds From Operations (FFO)/ Net debt on a look-through basis (6) From balance as at 30 June 19 Spark Infrastructure I Investor Presentation | August 2020 Growth capital expenditure(4) $144m Up 10.5% FFO/ Net debt(5) 14.3% Down 0.1% 3#4INFRASTRUCTURE FOR THE FUTURE SUSTAINABLE YIELD AND GROWTH FOR THE FUTURE Highly defensive businesses investing in Australia's energy transition • Businesses have adapted well to COVID-19 conditions with minimal impact, and are supporting consumers through network tariff relief Distribution and transmission revenues up 3.8%, in accordance with regulatory price-paths First renewables project delivered on time and under budget; fully operational Underlying Look-through Net Operating Cash Flow before tax up 13.0%; Robust and highly defensive through COVID-19 Growth capex up 10.5% on prior period Growing substantial pipeline of regulated and contracted capex opportunities across all Businesses; supported by AEMO's 2020 ISP All remaining historical taxes paid to remove downside risk and minimise potential ATO interest costs 1H20 interim distribution of 7.0cps to be paid in September; with DRP to operate at 2.0% discount Achieved an average payout ratio of ~73% of look-through net operating cash flows over the last 4½ years; equivalent standalone payout ratio ~95% (after incorporating all tax payments) Delivering Yield and Growth in difficult conditions, and investing in the transition to a lower-carbon environment for future generations Spark Infrastructure I Investor Presentation | August 2020 4#5INFRASTRUCTURE FOR THE FUTURE PERFORMANCE SUMMARY Adjusted Proportional Results (Spark Infrastructure share) ($m) (1) Distribution and transmission revenue Other revenue Total Revenue Operating costs Beon margin Enerven margin EBITDA Net external finance costs EBTDA (1) Normalising non-cash adjustments: HY 2020 HY 2019 Change Proportional HY2019 EBITDA $423.9m 510.4 491.7 3.8% Change in VPN EBITDA (1) $5.7m 75.3 85.4 -11.8% Change in SAPN EBITDA (1) $13.2m 585.7 577.1 1.5% Change in TransGrid EBITDA ($3.8m) (158.8) (160.7) -1.2% 3.9 2.9 34.5% Proportional HY2020 EBITDA $439.0m 8.4 4.6 82.6% 439.0 423.9 (90.1) (90.9) 3.6% -0.9% VPN revaluation adjustment(1) $1.0m SAPN revaluation adjustment(1) $0.2m 348.9 333.0 4.8% Statutory Proportional HY2020 EBITDA $440.2m VPN: HY 2020: excludes $1.0m positive revaluation adjustment to employee entitlements provisions and $1.5m loss in a credit valuation hedge accounting adjustment HY 2019: excludes $4.6m negative revaluation adjustment to employee entitlements provisions and $0.3m gain in a credit valuation hedge accounting adjustment SAPN: HY 2020: excludes $0.2m positive revaluation adjustment to employee entitlements provisions and $2.0m loss in a credit valuation hedge accounting adjustment HY 2019: excludes $1.7m positive revaluation adjustment to employee entitlements provisions and $1.0m loss in a credit valuation hedge accounting adjustment Spark Infrastructure adjusted proportional EBITDA has increased by 3.6% Spark Infrastructure I Investor Presentation I August 2020 5#6INFRASTRUCTURE FOR THE FUTURE UNDERLYING LOOK-THROUGH CASH FLOW SUMMARY Victoria SA Power Spark Spark Infrastructure share ($m) Power TransGrid HY 2020 HY 2019 Change Networks Infrastructure Networks EBITDA from operations 213.9 177.3 49.0 440.2 421.0 4.6% less corporate costs (7.5) (7.5) (8.0) -6.3% less net finance charges (1) (40.4) (32.5) (15.9) 0.4 (88.4) (88.2) 0.2% less net reg depreciation/maint. capex (2) (66.1) (60.2) (11.7) (138.0) (135.0) 2.2% Working capital/non cash movements (8.5) (7.0) (2.0) (17.5) (22.7) -22.9% Underlying net operating cash flows before tax 98.9 77.6 19.4 (7.1) 188.8 167.1 13.0% less underlying tax paid (3)(4) - - (19.0) (19.0) (8.5) 123.5% Underlying net operating cash flows after tax 98.9 77.6 19.4 (26.1) 169.8 158.7 7.0% Underlying Standalone OCF per Security 9.9 cps 9.4 cps 5.3% Distributions paid (5) 78.4 46.8 11.6 120.5 126.2 Growth capex(6) (92.2) (16.0) (28.7) (7.1) (144.0) (130.3) 10.5% Other Investing cash flows (1.6) (93.8) (8.0) (3.9) 9.1 (4.4) (15.1) -70.9% (24.0) (32.6) 2.0 (148.4) (145.5) 2.0% Underlying look-through net operating cash flows before tax increased 13.0%; growth capex up 10.5% to $144.0m (1) Corporate finance charges excludes interest paid of $6.7m on historical tax payments made (under review) (2) Net regulatory depreciation is a proxy for maintenance capex. It is calculated as regulatory depreciation net of actual CPI uplift on RAB (3) Spark Infrastructure corporate tax paid of $19.0m in 2020 represents half of the 2019 tax liability for the SIH1 and SIH2 tax groups. 2019 tax paid of $8.5m represents half of the 2018 tax liability for SIH2 tax group. Excludes other tax paid of $55.3m comprised of $34.4m tax paid in relation to a number of historical years (2015-2018), net monthly tax instalments of $1.9m and $19.0m of tax paid in relation to H2 2019. 2019 excludes other tax paid of $5.4m of tax paid in relation to H2 2018. Refer to slide 45 for additional tax information. (4) VPN and SAPN cash tax paid of $15.2m and $2.0m respectively for the 31 December 2019 year has been excluded as the benefit of franking credits will be distributed to Spark Infrastructure in future years (5) Total HY2020 and HY2019 distributions are based on accrued distributions to Spark Infrastructure Securityholders (6) Represents increase in RCAB and Bomen Solar Farm acquisition and construction costs Spark Infrastructure I Investor Presentation I August 2020 6#7INFRASTRUCTURE FOR THE FUTURE STANDALONE NET OPERATING CASH FLOW Operating Cash Flow ($m) Investment Portfolio Distributions Victoria Power Networks (1) SA Power Networks TransGrid Total Investment Portfolio Distributions Net interest received Corporate expenses Underlying Net Standalone OCF before tax Underlying tax paid (2) Underlying Net Standalone OCF after tax Underlying Standalone OCF per Security Operating costs - Bomen related Project and transaction bid costs Other interest paid (4) Other tax paid (3) Standalone Net OCF Spark Infrastructure Distribution per Security HY 2020 HY 2019 Change 78.4 75.9 3.3% 46.8 55.2 -15.2% 11.6 21.5 -46.0% 136.8 152.6 -10.4% 0.4 0.9 -55.6% (7.5) (8.0) -6.3% 129.7 145.6 -10.9% (19.0) (8.5) 123.5% 110.7 137.1 -19.3% 6.5 cps 8.2 cps -20.7% (0.4) (0.8) -50.0% (3.3) (2.9) 13.8% (6.7) n/m (55.3) (5.4) n/m 45.0 128.0 -64.8% 7.0 cps 7.5 cps -6.7% Cumulative underlying payout ratio for the last 4½ years (2016 - HY 2020) is 95% (after tax payments) (1) Victoria Power Networks distributions for HY2019 include both interest on and repayment of shareholder loans. Repayments of loan principal are classified as investing activities for statutory reporting purposes (2) Tax paid of $19.0m in 2020 represents half of the 2019 tax liability for the SIH1 and SIH2 tax groups. 2019 tax paid of $8.5m represents half of the 2018 tax liability for SIH2 tax group. (3) Other tax paid of $55.3m comprised of $34.4m tax paid in relation to a number of historical years, net monthly tax instalments of $1.9m and $19.0m of tax paid in relation to H2 2019. 2019 other tax paid represents $5.4m of tax paid in relation to H2 2018. Refer to slide 45 for additional tax information (4) Other interest paid includes an interest charge of $6.7m on historical tax payments made (related to the Victoria Power Networks litigation and subject to the outcome of the Federal Court appeal) Spark Infrastructure I Investor Presentation | August 2020 7#8INFRASTRUCTURE FOR THE FUTURE STRONG BALANCE SHEET & LOW REFINANCING RISKS Total Debt Facilities Next Maturity Rating (S&P/ Moody's) Undrawn Debt Drawn Debt Average Interest Rate Amount Avg. Maturity Amount Date VPN (1) A- / n/a $335m $4,737m 3.6%(5) $5,072m 4.9 years $425m August 2021 SAPN(1) TransGrid(1) A- /n/a $225m $3,322m 4.1%(5) $3,547m 6.4 years $53m June 2022 n/a / Baa2(2) $568m(3) $5,955m(3) 3.5%(5) $6,523m(3) 4.6 years $1,550m(4) June 2021 Corporate (1) n/a / Baa1 $220m $180m 2.3% $400m 2.7 years $400m February 2023 . • Substantial undrawn and committed facilities ⚫ Investment grade credit ratings • Access to multiple sources of debt ⚫ Long-weighted average maturities Minimal short-term refinancing requirements (1) All figures at 100%. As at 30 June 2020 (2) Relates to the TransGrid Obligor Group (3) Relates to TransGrid Obligor Group and TransGrid Services (4) This amount includes $365m undrawn debt at 30 June 2020 (5) Average interest rate is calculated based on finance charges (less non-cash credit valuation hedge adjustments) divided by average gross debt in the period Spark Infrastructure | Investor Presentation I August 2020 8#9INFRASTRUCTURE FOR THE FUTURE COVID-19 UPDATE No Government financial assistance has been utilised; focusing on health and safety of employees while maintaining essential services to customers Network Relief Package • Support to customers affected by COVID-19(1) through Energy Networks Australia (ENA) Network Relief Package (2) announced at the beginning of April For customers impacted by COVID-19, the Network Relief Package waives network charges for residential customers of small retailers and small business customers and defers payment of network charges for residential customers of large retailers for the period 1 April 2020 and to 30 June 2020 Estimated aggregate cost to VPN, SAPN and TransGrid of ~$7m (at 100%) In August, the AEMC made a preferred rule to enable some retailers (that are not retailers of last resort or government owned) to defer the payment of network charges for customers subject to payment plans, hardship arrangement or deferred debt arrangement for the period August 2020 to February 2021 for up to 6 months. Retailers will pay interest on deferred charges ⚫ Victorian businesses have voluntarily extended a modified Network Relief Package consistent with the AEMC rule (does not require the payment of interest) to 31 January 2021(3) Victoria Power Networks Lower energy demand across VPN in the Half Year compared to 2019 driven by small and large commercial usage down around 10%, offset by higher residential consumption up around 4% • SA Power Networks Energy demand in South Australia was down in Q1 but has seen an increase in Q2 compared to 2019 mostly due to colder weather increasing electricity usage for residential heating (4) TransGrid Energy demand declined by around 5% in April. However, improvement was seen during May and June which recorded only a 1% reduction compared to Q2 2019(4) Business Impact Total Volume 8,335 GWh 4.8% 7,933 GWh 4.4% 5,070 GWh 4,845 GWh 34,970 GWh 4.1% 33,590 GWh HY 2019 HY 2020 HY20 regulated revenue includes a $2.4m estimated rebate under the ENA Network Relief Package HY 2019 HY 2020 HY20 regulated revenue includes a $1.0m estimated rebate under the ENA Network Relief Package HY 2019 HY 2020 HY20 regulated revenue includes a $3.4m estimated rebate under the ENA Network Relief Package Small business customers who consume less than 40MWh per annum (based on 2019) and use less than 25% of historical average consumption for the period. Residential customers not in arrears or receiving government benefits before 1 March 2020 but are after 1 April 2020 https://www.energynetworks.com.au/miscellaneous/covid-19-electricity-and-gas-network-relief-package/. 1234 https://www.energynetworks.com.au/news/media-releases/2020-media-releases/energy-networks-extend-customer-support/ AEMO, Quarterly Energy Dynamics Report Q2 2020 - Market Insights and WA Market Operations Spark Infrastructure I Investor Presentation | August 2020 9#10INFRASTRUCTURE FOR THE FUTURE OUR INVESTMENTS' FINANCIAL RESULTS HALF YEAR 2020 Spark Infrastructure I Investor Presentation | August 2020 10#11INFRASTRUCTURE FOR THE FUTURE VICTORIA POWER NETWORKS Financial ($m) (1) Regulated revenue - DUOS Prescribed metering ("AMI") Semi-regulated revenue Unregulated revenue. Total Revenue Operating costs (4) Beon margin EBITDA Other HY 2020 HY 2019 Change CPI-X $18.4m 494.7 474.8 STPIS (2) 40.4 42.5 $11.1m 30.1 29.1 19.7 27.3 Customer Growth (3) 1.2% 584.9 573.7 2.0% (156.2) (166.1) (3) Consumption -4.8% 7.9 6.0 FTE 4.5% 436.6 413.6 5.6% Change(3) Net Debt/ Net finance costs (5) 71.6% (85.7) (84.4) RAB Net capital expenditure 311.5 221.0 FFO/ 14.4% Distributions received by Spark Infrastructure 78.4 75.9 3.3% Net Debt On an adjusted EBITDA (4) basis the HY2020 result increased by $11.7m or 2.8% (1) 100% basis (2) 2017 STPIS recovered in HY2020 (3) Compared with HY2019 (4) HY2020 includes $1.9m positive (non-cash) revaluation adjustments to employee entitlements provisions (HY2019: includes $9.4m loss) (5) HY2020 includes a $3.1 (loss) in non-cash credit valuation hedge adjustments (HY2019: $0.6m gain) Spark Infrastructure | Investor Presentation | August 2020 11#12INFRASTRUCTURE FOR THE FUTURE VICTORIA POWER NETWORKS Key Financial Drivers Regulated Revenue Up by 4.2% • • CPI of 1.59% from 1 January 2020 • X-factors for Powercor: -2.40% and Citi Power: -1.88% representing a real increase in revenue before CPI $11.1m STPIS recovery . Network Relief Package ($2.4m) Regulated Asset Base Up by 5.4%(4) Other Revenue (excl. Beon) Down by 8.8% Operating Costs • • . . RAB increased to $6,520m Increase driven by net capex of $604m(1), less regulatory depreciation of $380m, and CPI uplift of $111m Semi-regulated revenue: up 3.4% – increased new connections revenue driven by residential growth in the Powercor Network AMI revenue: down 4.9% - depreciating RAB Unregulated revenue: down 27.8% - sale of properties in the previous half year Larger than CPI salary increases driven by EBA's partially offset by tight cost control in the business (excl. Beon) Up by 0.9% (2) Beon Margin . Continued growth in new solar projects such as Jemalong and Melbourne Airport Solar Projects Up by 31.7% Net Capital Expenditure Up by 41.0% • • Growth capex of $206.2m up 39.5% (network connections and augmentation) – continuation of REFCL (3) program Maintenance capex of $105.3m up 44.1% – zone substation replacement projects Highest ever capex program Victoria Power Networks RAB has increased 5.4% over the last 12 months (1) Excludes corporate overheads (2) Excluding $1.9m positive (non-cash) revaluation adjustments to employee entitlements provisions (HY2019: includes $9.4m loss) (3) Rapid Earth Fault Current Limiter (4) From 30 June 2019 Spark Infrastructure I Investor Presentation I August 2020 12#13INFRASTRUCTURE FOR THE FUTURE SA POWER NETWORKS Financial ($m) (1) Regulated revenue – DUOS Semi-regulated revenue Unregulated revenue Total Revenue Operating costs (2) Enerven margin EBITDA Other HY 2020 HY 2019 Change CPI-X $10.7m 430.0 412.6 40.6 46.7 STPIS(4) $17.7m 4.8 5.5 Customer 1.2% 475.4 464.8 2.3% Growth (5) (130.9) (136.3) (5) Consumption -4.4% 17.1 9.3 361.6 337.8 7.0% FTE -2.3% Change(5) Net finance costs (3) Net Debt/ (72.2) (69.6) 73.8% RAB Net capital expenditure 177.1 222.9 FFO/ Distributions received by Spark Infrastructure 46.8 55.2 -15.2% 17.8% Net Debt On an adjusted EBITDA (2) basis the HY2020 result increased by $26.9m or 8.1% (1) 100% basis (2) HY2020: $0.4m positive revaluation adjustments to employee entitlements provisions (HY2019: $3.5m positive revaluation adjustment) (3) HY2020 includes a $4.1m (loss) credit valuation hedge adjustment (HY2019: includes a $2.1m loss) (4) 2017/18 STPIS result to be recovered from 1 July 2019 (5) Compared with HY2019 Spark Infrastructure I Investor Presentation | August 2020 13#14INFRASTRUCTURE FOR THE FUTURE SA POWER NETWORKS Key Financial Drivers Regulated Revenue Up by 4.2% CPI of 1.78% from 1 July 2019 (1 July 2018: CPI 1.91%) • X-factor applicable from 1 July 2019 was -0.85% representing a real increase in revenue before CPI $17.7m STPIS recovery Regulated Asset Base Up by 1.3% (2) Underlying Other Revenue Down by 6.8% (4) Underlying Operating Costs (Excl. Enerven) Down by 6.1% (3) Enerven Margin Up by 83.9% Net Capital Expenditure Down by 20.5% • Network relief package ($1.0m) RAB increased to $4,372m Increase driven by net capex of $306m(¹), less regulatory depreciation of $328m, and includes CPI uplift of $79m Semi-regulated revenue: down 6.0% (4) - declining activity across all areas of asset relocation, embedded generation and council funded replacement of public lighting Lower staff and consultancy costs Reduced expenditure in connection with emergency response and timing of vegetation management costs November and December bushfire event provisions write back Change in project mix, with projects for existing client base (including ElectraNet) complemented by new business activity including commercial solar and battery solutions Enerven is engaged in deploying solar and battery capability to a significant number of SA Water sites under a framework contract of up to $300 million, predominately over 2019 and 2020 Growth capex of $62.4m, down 19.6% - network connections and augmentation Maintenance capex of $114.7m, down 21.1% SA Power Networks has seen RAB growth of 1.3% over the 12 months (1) Excludes corporate overheads (2) Includes public lighting RAB (3) Excludes 2020 revaluation adjustments to employee entitlements of $0.4m positive (2019: $3.5m positive) (4) Excludes public lighting provision write back. In 2019 a long running public lighting dispute was resolved and required amounts were settled with customers in January 2020. As a result of finalisation of the quantum of this matter, provisions of $3.5m were unwound in 1H2019. Spark Infrastructure | Investor Presentation 1 August 2020 14#15INFRASTRUCTURE FOR THE FUTURE TRANSGRID Financial ($m) (1) Regulated revenue Unregulated revenue HY 2020 HY 2019 Change CPI-X(2) $5.7m 381.5 379.0 STPIS (3) 63.0 74.4 $8.3m Other Revenue (8) (3.8) 1.2 Total Revenue 440.7 454.6 -3.1% RAB(4) Growth 2.3% Regulated operating costs (81.3) (78.4) CAB(4)(5) Unregulated operating and other costs (32.8) (24.2) 43.1% Growth EBITDA 326.6 352.0 -7.2% Other FTE Change(4) 3.0% Net finance costs Regulated capital expenditure Contracted capital expenditure Distributions received by Spark Infrastructure (108.2) (111.3) 204.6 124.3 105.7 106.1 11.6 21.5 -46.0% FFO / Net Debt(7) 7.7% Net Debt / RCAB(5)(6) 79.8% Capital Expenditure for HY2020 increased $79.9m or 34.7% (1) 100% basis (2) Relates to period 1 January 2020 to 30 June 2020 and includes an adjustment relating to the revocation and substitution of TransGrid's revenue determination for the 2014-2018 regulatory period (3) 2018 STPIS result to be recovered from 1 July 2019 (4) Compared with June 2019 (5) CAB comprises of unregulated infrastructure and telecommunication assets and investment property (6) Net Debt is calculated using gross debt less cash and adjusted for prescribed revenue over/(under) collection and includes TransGrid Services (TGS) (7) Relates to TransGrid Obligor Group (8) HY2020 amount of ($3.8m) relates to revaluation of investment property Spark Infrastructure I Investor Presentation | August 2020 15#16INFRASTRUCTURE FOR THE FUTURE TRANSGRID Key Financial Drivers - Regulated Business Regulated Revenue Up by 0.7% $9.7m increase in the Maximum Allowed Revenue (MAR) for the period 1 July 2019 to 30 June 2020, based on a 1.80% CPI increase and X factor of -0.97%, partially offset by an adjustment relating to the revocation and substitution of TransGrid's revenue determination for the 2014-2018 regulatory period as advised by the AER. The impact for the first half of 2020 was a $5.7 million increase on the preceding period $8.3m STPIS payment Network Relief Package ($3.4m) Increase driven by capital expenditure of $294m, less regulatory depreciation of $275m, and includes CPI uplift of $129m Regulated Asset Base Up by 2.3% RAB increased to $6,589m Operating Costs Lower labour costs, consulting and other operational costs as a result of operating efficiencies gained Down 8.2% (3) Capital Expenditure Up by 64.6% Growth capex(1) of $85.6m (up 303.8%) • Maintenance capex of $94.9m (up 17.6%) Non-network (2) capex of $24.1m (up 7.6%) Increase was mainly due to investment in augmentation projects including Powering Sydney's Future, Stockdill Switching Station and ISP projects, and higher maintenance capex TransGrid has seen RAB growth of 2.3% over the 12 months (1) Includes Integrated System Plan (ISP) projects (2) Includes Network Capability Incentive Project Action Plan (NCIPAP) capex (3) Excluding $9.3m bushfire costs incurred during 2HFY20 for remediation of damage sustained during the bushfires in November and December 2019 Spark Infrastructure I Investor Presentation | August 2020 16#17INFRASTRUCTURE FOR THE FUTURE TRANSGRID Key Financial Drivers – Unregulated Business Contracted Capital Expenditure Down by $0.4m Unregulated Revenue Down by $11.4m • • • Infrastructure capex includes renewable connections projects delivered in HY2020 (Darlington Point, Kiamal and Bomen Solar Farm) Increase in telco capex primarily driven by NBN POI rollout Infrastructure connection revenue continued to increase in 2020 to $44.3m (HY2019: $24.3m) as construction of a number of connection assets was completed Decrease in line modification revenue to $4.4m (HY2019: $34.8m) as a result of the completion of a number of one-off projects in 2019 Connections revenue is expected to continue to grow with a number of new connections projects currently under construction and in the pipeline Increased in telecommunications revenue as a result of growth in data services and co-location facilities Unregulated Operating Costs Up by $8.6m Contracted Asset Base Up by $219.4m(1) • • Increase in new infrastructure connections partially offset by a decrease to the number of line modification projects Additional project development costs supported the acceleration of TransGrid's rapidly expanding non prescribed connections pipeline, which is delivering increased contracted revenue growth • CAB increased to $728m • Increase driven by capex of $239m and gain on investment property of $0.7m, less depreciation of $20m TransGrid has seen CAB growth of 43.1% over the 12 months (1) From 30 June 2019 Spark Infrastructure | Investor Presentation | August 2020 17#18INFRASTRUCTURE FOR THE FUTURE INNOVATION AND REGULATION INDUSTRY AND BUSINESS CONSIDERATIONS Spark Infrastructure I Investor Presentation | August 2020 18#19INFRASTRUCTURE FOR THE FUTURE INVESTMENT IN INNOVATION Building resilient networks for future generations Victoria Power Networks Solar Enablement Program Currently being considered by the Australian Energy Regulatory (AER) this program represents a $93m investment over five years that will enable most customers to connect their 5kVa solar PV system and ensure 95% of customers are able to export to the grid This program will remove solar constraints where it is economic to do so – that is where the benefits to customers outweigh the costs - and assist customers where it is not LiDAR Lab VPN has established a new LiDAR processing lab to perform vegetation inspection, focused on identifying multi-circuit clearance breaches. Through automated modelling, the inspection needs to be accurate to within 5cm, as such the models have been rigorously audited to provide assurance to the business and maintenance teams. The LiDAR Lab project will see all LiDAR services moved in-house by 2021 to improve quality, minimise risks, reduce work hours and reduce costs SA Power Networks Upgrade Low Reliability Feeders 午 SA Power Networks have pursued a program to upgrade low reliability feeders in their worst performing parts of the network. This program was not required under the National Electricity Rules (NER) and was originally rejected by the AER in their draft decision Following further consultation with the Consumer Consultative Panel the program gained unanimous consensus and the upgrade was accepted in the AER's Final Determination based on the significant stakeholder support Solar-Sponge Tariff South Australia has the highest per capita level of rooftop solar. SAPN has created an innovative tariff structure for residential customers. This tariff offers a lower network charge during the middle of the day when solar output is highest, to encourage shifting of electricity use to those times Raising demand for grid supplied electricity in the middle of the day can help manage voltage issues and thermal overloads associated with low demand, while shifting demand away from the evening peak that can put heavy strain on the network Spark Infrastructure I Investor Presentation | August 2020 19#20INFRASTRUCTURE FOR THE FUTURE INVESTMENT IN INNOVATION Facilitating the energy transition for future generations $ TransGrid Bomen Solar Farm Multi-spectrum Inspections TransGrid has recently implemented an advanced targeted asset inspections program using combined photographic, infrared (IR) and ultraviolet (UV) cameras to identify issues which are outside of the visual spectrum and in a single flight This aids in identifying issues which can't be detected from visual inspection alone and allows repairs to be planned in advance of a failure, driving pro- active and optimal asset management while reducing network risks Communication Network Upgrades A multi-year strategy has been created to deploy advanced communications infrastructure (MPLS-TP). This new network is envisaged to better enable data intensive inter-substation communications, support increasing needs for advanced cyber and physical security systems, and enable faster more reliable wide-area enterprise traffic solutions Upon completion in 2023 TransGrid will become the leader among Australian Transmission Network Service Providers (TNSPs) as the first to integrate protection-signaling across a Carrier Ethernet system Spark Infrastructure I Investor Presentation | August 2020 Bifacial Solar Panels Bomen Solar Farm became the first major project completed in Australia to install bifacial modular panels which produce up to 20% more output, delivering higher efficiencies and lower levelised costs of electricity (LCOE) when compared to monofacial panel technologies The technology is one of the most recent innovations in the industry which utilises the direct sunlight on the face of the panel whilst also picking up reflected sun from the ground received on the rear side of the panels Community Partnership Programs In partnership with Westpac, Spark Infrastructure has established a community fund to invest $1 million over ten years to support youth education and local biodiversity and vegetation programs $350,000 of these funds will be used to undertake a revegetation program to enhance biodiversity in the proximity of the Bomen precinct. It is anticipated planting would occur during the winter months of 2021/22 and would include between 40,000 and 50,000 plants 20 20#21INFRASTRUCTURE FOR THE FUTURE SAPN 2020-25 FINAL REGULATORY DETERMINATION The AER Final Decision establishes revenue certainty until 2025 Regulatory proposal 2015-20 Allowance (1) metric 2020-25 Draft Decision (2) 2020-25 Revised Proposal (2) 2020-25 Final Decision (2) Capex $2,011m $1,247m $1,693m $1,596m ($2019-20) The final decision is in line with expectations with improved capex and inflation outcomes Standard Control Services Revenue ($m) and RAB ($bn)(1)(2) $1,000 Opex $1,375m $1,473m(3) $1,470m $1,470m ($2019-20) $800 WACC 6.17% 4.95% 4.79% 4.75% $600 Risk-free 4.68 4.77 4.85 2.96% 1.32% 0.96% 0.90% 4.48 4.59 4.36 Rate $400 4.23 4.09 3.88 3.93 Inflation 2.50% 2.45% 2.36% 2.27% $200 Gamma Revenue (Nominal) 0.4 0.585 0.585 0.585 $3,769m $3,905m $3,933m $3,914m FY16 FY17 FY18 FY19 FY20 FY21 Revenue Allowance Revised Proposal (Revenue) FY22 FY23 FY24 Draft Determination (Revenue) Final Decision (Revenue) FY25 Regulated Asset Base The majority of SA Power Networks' Revised Proposal was accepted by the AER in the Final Decision released on 5 June 2020 (1) AER Final Decision 2015-2020, October 2015 updated to $2020 (2) AER Final Decision Overview, June 2020.(3) AER Draft Decision Overview, October 2019. Spark Infrastructure | Investor Presentation | August 2020 21#22INFRASTRUCTURE FOR THE FUTURE VPN 2021-26 REGULATORY PROPOSAL Final Risk-free Rate to be updated prior to the final decision in April 2021 VPN's Regulatory Proposal maintains revenue and continued RAB growth Standard Control and Metering Revenue ($m) (1) (2) (5) and RAB ($bn) (4) 2016-20 2021-26 Regulatory proposal metric Proposal (1) 2021-26 CitiPower (CP) CP Regulatory Powercor (PC) PC Regulatory Allowance (1) 2016-20 Allowance (2) Proposal (2) Capex $852m $852m $1,624m $2,140m ($2021) $1,000 Opex $472m $569m $1,181m $1,537m ($2021) $800 WACC 6.11% 4.52% 6.11% 4.52% $600 8.01 8.37 7.61 5.72 $400 5.27 5.47 6.00 6.29 6.59 7.11 Risk-free Rate 2.48% 1.32% 2.48% 1.32% $200 Gamma 0.4 0.585 0.4 0.585 $- FY17 FY18 FY19 FY20 FY21 FY22 Revenue (3) $1,681m ($2021) $1,599m $3,694m $3,695m CitiPower Revenue Allowance CitiPower Proposal (Revenue) FY23 FY24 FY25 FY26 Powercor Revenue Allowance Powercor Proposal (Revenue) VPN Regulated Asset Base A transition period will apply between 1 January 2021 and 30 June 2021 to give effect to the Victorian Government's intent to delay the 5 year regulatory period (1) Citi Power, Regulatory Proposal 2021-2026, 31 January 2020 (2) Powercor, Regulatory Proposal 2021-2026, 31 January 2020 (3) Includes metering revenue (4) RAB values from RAB roll-forward model (RFM) and post- tax revenue model (PTRM) submitted with CitiPower and Powercor regulatory proposals on 31 January 2020 (5) AER: CitiPower - Final Decision 2016-2020 updated to $2021 and AER: Powercor - Final Decision 2016-2020 updated to $2021 Spark Infrastructure I Investor Presentation I August 2020 22#23INFRASTRUCTURE FOR THE FUTURE REGULATORY TIMELINES Determinations for SA Power Networks and Victoria Power Networks will incorporate lower returns from the AER's 2018 decisions on the Rate of Return Instrument (RORI) and tax, but revenue will be certain for the five-year regulatory periods 2019 QNI CPA PEC Final Decision CPA (final) QNI CPA 17 Jan 28 April VNI PACR (1) PEC CPA (initial) HumeLink PADR(1) 10 Jan 14 Feb 29 June 2020 Q3 PEC CPA Final Decision Q4 VNI CPA & Final Decision Q3-Q4 HumeLink PACR Q1 2021 HumeLink CPA & Final Decision Q3-Q4 Proposal due Draft Decision Sept Final Jan Revised proposal due Dec Decision April Period commences 1 July 2022 2023 Period commences SA POWER NETWORKS 2020 to 2025 VICTORIA POWER NETWORKS 2021 to 2026(2) Proposal submitted 31 Jan Revised Proposal Draft Decision 10 Dec Proposal submitted Final Decision Draft Decision 5 June Sept Period commences Revised proposal 1 Jan² 6 month transition period 1 July Final Decision 8 Oct 31 Jan 1 July Dec April TRANSGRID 2018 to 2023 (MAJOR PROJECTS³) TRANSGRID 2023 to 2028 Regulatory processes to support delivery of Major Projects are underway in 2020 (1) The Regulatory Investment Test Transmission (RIT-T) and contingent project application (CPA) processes are expected to occur throughout 2020 and 2021 (2) 6 month transition period will occur between 1 January 2021 and 30 June 2021 as a result of the Victorian Government decision to change the regulatory period cycle to a 1 July commencement date. A 5 year regulatory period will commence from 1 July 2021 (3) Revenue will be adjusted in the current regulatory period to incorporate the AER's decisions on CPA's - Dates subject to change. Spark Infrastructure | Investor Presentation I August 2020 23#24INFRASTRUCTURE FOR THE FUTURE REGULATORY REVIEWS We will engage and advocate for outcomes that support returns required while delivering lower costs to customers Review Objective Support retailers in financial difficulty as a result of customers not paying bills due to COVID-19 Assess performance of inflation forecasting methodology and impact on returns ESB Converting the ISP into action (proposed rule changes) Streamline regulatory processes whilst retaining a rigorous cost/benefit assessment AEMO 2020 Integrated System Plan (ISP) Roadmap for Australia's power system that maximises market benefits AEMC Deferral of network charges AER Inflation Review AEMC Rules to integrate DER AEMC Regulatory Framework for stand alone power systems AER Rate of Return Instrument (RORI) AEMC AEMC ESB Rules to facilitate system stability Coordination of Generation and Transmission Investment (COGATI) Access and Charging (1) Post 2025 National Electricity Market (NEM) Design Allow two-way energy flows and charging for export Allow customers to benefit from new technology that lowers costs of providing regulated services Sets out approach to estimate rate of return: return on debt, return on equity and value of imputation credits Create new markets for synchronous services, reserve markets and ahead markets Better co-ordinate generation and transmission investment to improve the efficiency of dispatch and location of generators; provide certainty to support new investment and improve planning information Develop long-term, fit-for-purpose market framework to enable provision of full range of services to customers necessary to deliver a secure, reliable and lower emissions electricity system at least-cost (1) Now incorporated in to the ESB's post 2025 NEM Design program as Grid Access Spark Infrastructure I Investor Presentation | August 2020 Implementation 1 July 2020 July 2020 August 2020 End 2020 End 2020 End 2021 Dec 2022 Prior to 2025 2025 2025 24#25INFRASTRUCTURE FOR THE FUTURE STRATEGY AND GROWTH DELIVERING GROWTH FOR THE FUTURE Spark Infrastructure I Investor Presentation | August 2020 25#26INFRASTRUCTURE FOR THE FUTURE STRATEGIC VISION AND PRIORITIES OBJECTIVE Delivering long-term value through capital growth and distributions to Securityholders from our portfolio of high-quality, long-life essential services infrastructure businesses By building sustainable businesses and harnessing their evolving growth potential we will continue to create long-term value for Securityholders BUSINESS MODEL Value Enhance Managing our portfolio for performance and organic growth through efficient investment Value Build Developing adjacent business platforms ELECTRICITY NETWORKS 10 RENEWABLE ENERGY Spark Infrastructure I Investor Presentation | August 2020 ELECTRICITY STORAGE GAS NETWORKS / GAS STORAGE WATER NETWORKS / WATER STORAGE Value Acquire Growing through disciplined acquisitions 26 26#27INFRASTRUCTURE FOR THE FUTURE AUSTRALIA'S ENERGY MARKET IS IN TRANSITION The Australian Energy Market Operator's (AEMO) 2020 Integrated System Plan (ISP) was released in July 2020 and identifies nationally significant and essential investments in the electricity system and outlines the forecast installed capacity requirements for generation Networks are critical enablers of the market's transition Key market requirements in the 2020 ISP(1) Around 18 transmission projects including 10 in NSW, representing direct opportunities for TransGrid with a combined estimated capital cost of approximately $13bn (2) Solar Wind PV Distribution Behind-the-meter (Distributed energy resource, DER) Battery storage EV Hydrogen . . . Targeted grid investment needed to balance resources across States and unlock Renewable Energy Zones (REZS) Over 26 GW of new grid-scale renewables is needed to replace approximately 15 GW or 63% of Australia's coal-fired generation by 2040 6-19 GW of new dispatchable resources are needed in support to firm up the inherently variable nature of distributed and large- scale renewable generation Rooftop solar expected to more than double (to ~25 GW), supplying up to 22% of total energy by 2040 (1) Optimal development path (2) AEMO's modelled cost estimates in the 2020 ISP Spark Infrastructure I Investor Presentation I August 2020 000 Pumped ↑ Hydro Grid-scale battery Transmission Hydro Large industrial Commercial and loads domestic loads Thermal generation ttt Transmission Source: AEMO, 2020 Integrated System Plan Distribution 27#28INFRASTRUCTURE FOR THE FUTURE TRANSMISSION INVESTMENT IS A PREREQUISITE Substantial and sequential investment in the transmission network is required to deliver energy security and reliability, support proposed generation connections, unlock renewable energy resources and reduce total system costs to customers AEMO Far North QLD REZ Forsyth Indicative timing 2020 2021-22 NSW 2020 Integrated System Plan July 2020 For the National Electricity Market SA System Strength Remediation Mid North SA REZ Longreach Town de QNI Proserpine Mackay Medium & Large Central-West Orana REZ Transmission Link Classification Project SA System Strength Remediation 88 Committed QNI Minor 2021-22 Gladstone Grid Reinforcement Western Victoria Transmission Network Project 2025-26 VNI Minor 2022-23 Bockhampton adtone Project EnergyConnect 2024-25 Bundaberg Central to Southern QLD HumeLink 2025-26 Central-West Orana REZ Mid-2020s Transmission Link Actionable¹ ● Brisbane VNI West² 2027-28 QNI Minor Armidale New England REZ Dubbo Newcastle Reinforcing Sydney Sydney, Newcastle & Wollongong Supply Wollongong Canberra Hume Link Preparatory Activities VNI Minor Melbourne Network investments expected to deliver $11 billion in net benefits to the National Electricity Market (NEM) Port Lincoln Adelaide Project EnergyConnect VNI West South East SA REZ More than $19bn (1) of Network Investment required by 2040 Mount Gadder • Around $13bn (1) associated with NSW and TransGrid opportunities (1) AEMO's Modelled Cost of Projects 2020 ISP Spark Infrastructure I Investor Presentation | August 2020 Western Victoria Transmission Network Project Queenstown Launceston Hobart Marinus Link Marinus Link² - Cable 1 -Cable 2 QNI Medium & Large 2028-29 to 2031-32 2031-32 to 2035-36 2030s Early-2030s 2026-27 to 2032-33 Required Central to Southern QLD Reinforcing Sydney, Newcastle and Wollongong Supply Gladstone Grid Reinforcement New England REZ Network Expansion³ 2030s 2030s North West NSW Network Expansion 2030s Far North QLD REZ 2030s South East SA REZ 2030s Future ISP Projects Mid North SA REZ 2030s 1 Estimate practical completion including any subsequent testing projects may be delivered earlier 2 Decision rules may affect timing 3 May be accelerated by government initiatives 4 Not shown on map. AEMO requires that preliminary engineering designs be completed by 30 June 2021 2040 • DEPARTMENT OF PLANNING, INDUSTRY & ENVIRONMENT NSW Electricity Strategy Our plan for a reliable, affordable and sustainable electricity system energy.nsw.gov.au Drives $8bn of private investment Creates > 1,200 jobs Reduces electricity bills by $40 per year NSW Government will seek to legislate the requirement for ISP priority projects to proceed Projects can proceed ahead of RIT-T NSW Electricity Strategy includes a pilot 3 GW REZ 28#29INFRASTRUCTURE FOR THE FUTURE TRANSGRID OPPORTUNITIES From mid-2020 under the National Electricity Rules there is a requirement to progress the regulatory process and preparatory work for actionable ISP projects TransGrid Network Opportunities 2018-2023 capex allowance AEMO ISP 2020 Delivery Modelled Cost Target(1) $1.2bn N/A Bulli Creek Mudgeeraba Committed QNI Minor Actionable (2)$0.2bn 2021-22 QNI upgrade and New England Energy Zone VNI Minor (3)$0.1bn 2022-23 Project EnergyConnect (3)$2.0bn 2024-25 HumeLink (3)$2.1bn 2025-26 Central-West Orana REZ Transmission Link $0.7bn 2024-25 VNI West (Kerang Route) (4) (3)$2.4bn 2027-28 Total $7.3bn Preparatory Activities Required QNI Medium & Large $3.3bn 2032-33 to 2035-36 Red Cliffs New England REZ Network Expansion (5)$1.3bn 2030s North West NSW Network Expansion (6)$0.9bn 2030s Total Total ISP Modelled Projects $5.4bn $12.9bn Central West Energy Zone Project EnergyConnect and South West Energy Zone Options being assessed (RIT-T) SnowyLink South Wodonga Dederang Area with generator connection interest NSW Government energy zone Existing transmission infrastructure NSW transmission developments (ISP) New transmission developments (Energy Zones) HumeLink Sydney NSW Map Source: TransGrid, Transmission Annual Planning Report 2019 (1) AEMO 2020 ISP (2) Contingent Project Application (CPA) Approved 28 April 2020 (3) RIT-T process underway (4) Actionable with decision rules (5) Includes combined costs for Stage 1 & 2 (6) Includes combined costs for Stage 1,2 & 3 Spark Infrastructure | Investor Presentation I August 2020 29 29#30INFRASTRUCTURE FOR THE FUTURE TRANSGRID - CHANGE OF SECURITYHOLDERS Market valuations still do not reflect Spark Infrastructure's 15.01% Wren House Infrastructure (WHI) stake sold to Ontario Municipal Employees Retirement System (OMERS) Spark Infrastructure notes the completion of the sale process for the 19.99% stake in TransGrid held by Wren House to OMERS of Canada The process to sell WHI stake in TransGrid commenced in early 2020 and was offered to Spark Infrastructure and other securityholders in accordance with the pre-emptive process under the Securityholders Deed Spark Infrastructure declined to participate and notes that its 15.01% equity investment in TransGrid was purchased for $734.3 million in December 2015 The implied equity value on a proportional basis represents an approximate compound annual increase of 4.0% p.a. in addition to an approximate average distribution yield of 4.6% p.a. reflecting the improved business performance, growth in regulated and contracted assets (RCAB) as well as the anticipated significant and attractive growth pipeline The valuation acknowledges TransGrid's high quality business and once in a generation RAB and contracted growth pipeline Valuation reflects RAB and CAB growth emanating from ISP • • Regulated asset transactions have averaged an EV / RAB of 1.40x since 2007 Pipeline of growth opportunities is expected to double TransGrid's RAB in the current decade, assuming all ISP projects receive regulatory approval and proceed CAB is a material component of the EV; CAB is currently $728m (growth of 43.2% in last 12 months); continued growth in CAB expected to be driven by connections of new large-scale renewable projects Including CAB and valuing growth in RAB and CAB substantially adds to the headline RAB premium Spark Infrastructure | Investor Presentation | August 2020 30#31INFRASTRUCTURE FOR THE FUTURE RENEWABLES - BOMEN SOLAR FARM Our first investment is now operational – with construction completed under budget. Despite COVID-19 affecting commissioning, hold point testing has been completed and the farm has been operational and able to export 100% of generation since mid-June 2020 Project Snapshot Capacity Total cost at completion ~120.5 MW DC (~100 MW AC) -$180m(1) (~$8m under budget) SKI Acquires Bomen Solar Farm April 2019 Expected Revenue (P50) Gearing O&M and Asset Management Key Success Factors ~$13.5m p.a. for first 5 years(2) ~70% Beon Energy Solutions (Beon) and RES Strong partnerships with Beon (EPC and O&M), TransGrid (Connection), Westpac (PPA 1) and Flow Power (PPA 2) Optimised design to add an additional 0.5MWDC ✓ Construction delivered under budget by Beon and TransGrid Strong grid location with robust MLF and no system strength issues identified Provided around 200 jobs during construction with a focus on local jobs and supporting local businesses Community focus - in partnership with Westpac, established a fund to invest $1 million over ten years in community initiatives New South Wales (1) Includes purchase of land, construction costs, construction of dedicated transmission line and capitalised interest during construction (2) Average annual revenue considering PPA agreements, loss factors and plant output on P50 forecast Spark Infrastructure I Investor Presentation | August 2020 & Construction Complete June 2019 Construction Commences Wagga North substation Jan 2020 & Byrnes Road March 2020 AEMO Registration Operational June 2020 Northern Development Area Southern Development Area Trahairs Road PPAs -95% contracted for the first five years -82% contracted for the first 10 years Transmission line corridor East Bomen Road 10km to Wagga Wagga PPA Counterparties 10 YEARS Westpac 5,7, & 10 YEARS Flow Power 31#32INFRASTRUCTURE FOR THE FUTURE RENEWABLES - OPPORTUNITIES Spark Infrastructure is uniquely positioned to provide solutions for a sustainable future by investing in adjacencies that are complementary to the existing portfolio businesses Solar >15GW forecast installed capacity between 2022-2042 in the NEM(1) Core Investment Areas Wind • >16GW forecast installed Storage . capacity between 2022-2042 in the NEM(1) ~13GW installed capacity forecast between 2022-2042 in the NEM(1) Evaluating further opportunities for Bomen Solar Farm (including storage), particularly arising from the Wagga Wagga Special Activation Precinct • Exploring greenfield development projects in the NEM (wind, solar and storage) Seek to work with our asset companies wherever possible Objective is to build a diversified renewables platform Other Investment Areas under Consideration Build or Acquire Renewable Energy Generation and Storage 鱼 00 Enhance Network Businesses T Renewable Energy Zones Green Hydrogen (1) AEMO's 2020 ISP Central Scenario (DP1) Spark Infrastructure | Investor Presentation | August 2020 Virtual Power Plants 32 32#33INFRASTRUCTURE FOR THE FUTURE SUSTAINABILITY ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE Spark Infrastructure I Investor Presentation | August 2020 33#34INFRASTRUCTURE FOR THE FUTURE SUSTAINABILITY Our ownership of long-life, high performing essential services infrastructure businesses enables us to ensure sustainable policies and practices are adopted through robust governance, risk management and operational performance oversight Climate Change Embedding policies and strategies that drive tangible changes through asset management, network design and procurement Resource Management Growing and innovating business solutions to support and enable energy transition while reducing waste Environmental Protection Minimising negative impacts on the environment by ensuring the highest standard of management practices are embedded and compliance standards are maintained Corporate Governance Maintaining an effective governance and decision making structure through representation on the Board and Committees of the portfolio businesses Spark Infrastructure I Investor Presentation | August 2020 * ENABLING THE TRANSITION TO EMPOWERING A LOW-CARBON FUTURE OUR PEOPLE AND COMMUNITIES EMBEDDING RESPONSIBLE BUSINESS PRACTICES 良 Financial Management Maintaining a balanced portfolio where earnings will be supported by growth in the underlying assets of the businesses and through sustainable investment in high value unregulated opportunities Health, Safety and Wellbeing Fostering a safety culture across all investment companies and integrating systems that support both employees and contractors People Committed to delivering a strong inclusive values-based culture that promotes diversity and enables all employees to thrive and be successful Customers and Community Enabling safe, reliable and affordable electricity supply to our customers and contributing to the development of our communities by investing in initiatives that make a lasting positive impact Risk Management Ensuring effective identification of material risks and putting in place an adequate and effective risk management and internal control system 34#35INFRASTRUCTURE FOR THE FUTURE SAFETY AND SOCIAL Fostering a safety culture and supporting the customers and community in which our networks operate Victoria Power Networks Initiatives/Achievements Implementing a Human Factors Improvement Program aimed at improving capabilities to identify and eliminate errors that can lead to incidents or injuries Updated field inspection checklists to address work stream-specific requirements aimed at improving the identification of risks Piloted a virtual reality (VR) training program providing a safe environment for staff to virtually engage with substations and realistic work site environments Created ten new jobs at a Bendigo contact centre to further enhance customer service during the coronavirus pandemic Supported multiple community events through sponsorship and volunteering with employees once again on track to achieve their annual target of 2,000 volunteer hours SA Power Networks Initiatives/Achievements Implementing a Contractor Management System with Kineo SitePass. Planned rollout is on track for full implementation by the end of 2020 Increased focus on analysis of data within Enablon - SA Power Networks safety and event management system to drive opportunities for ongoing improvement Developing innovative and cost-effective approaches to deal with issues emerging from rapidly increasing levels of rooftop solar generation Embedded a Customer Consultative Panel that has been in place since 2009 which ensures the customer voice is considered in decision making and consists of a range of key stakeholder groups Employee Foundation has exceeded significant milestones in donating over $3 million to the South Australian community TransGrid Initiatives / Achievements Launched an end-to-end Contractor Safety Management System providing real-time data to site managers and line leadership teams Facilitated a Health and Safety Reset in May with all employees and contractors emphasising commitment to a safe workplace for all Leveraging innovative drone technology to complete transmission line stringing across more challenging sections of the electricity grid Reconciliation Action Plan 'Innovate' was launched in February 2020. 72 initiatives are outlined across the 3 commitment areas of Respect, Relationships and Opportunities. The second phase of Reconciliation builds on strong foundations. Donating over $170,000 through TransGrid's Community Partnerships Program to 28 not-for-profit groups as part of TransGrid's ongoing commitment to build positive relationships with local communities Spark Infrastructure | Investor Presentation | August 2020 35#36INFRASTRUCTURE FOR THE FUTURE ENVIRONMENTAL Delivering essential services in a manner that protects the environment and builds a more sustainable network for the future Victoria Power Networks Initiatives/Achievements Continually improving their Environmental Management System by establishing, monitoring and reviewing objectives and targets Improved reporting of environmental incidents has enabled the HSE team to more rapidly resolve issues such as oil spills in substations Implementing phase two of three of the Rapid Earth Fault Current Limiter (REFCL) program providing extra bushfire protection for the community Upgrading public lighting to new energy-efficient and cost-effective LED technologies which require 80% less energy than older-style lighting Solar enablement program (being considered by the AER) aimed at empowering customers to connect and export solar into the grid SA Power Networks Initiatives / Achievements Developed a Climate Change Plan which documents the adaptation and mitigation risks, opportunities and initiatives within the business Enhancing the Environmental Management System and other business processes to continue to increase positive environmental outcomes Implementing Sustainable Procurement initiatives and working with traditional landowners to preserve cultural heritage during projects Developed a circular economy model which includes water and waste management initiatives which has seen a landfill diversion rate of ~76% across all sites Implemented an efficient property maintenance strategy which has seen -40% of the 200,000+ streetlights managed by SAPN converted to LEDs • TransGrid Initiatives / Achievements Developed a Network Climate Change Adaption Strategy which assists in designing and delivering a resilient network that can face future climate challenges Invited to sit on the Steering Committee of the NSW Government's Climate Change Cross Dependency Initiative (XDI) Project Implemented improved ecology and aboriginal cultural heritage risk management processes and updated internal due diligence assessments Implemented a Waste Tracking System (further enhancing the current enterprise hazard and risk management system - CAMMS) Initiated the Infrastructure Sustainably Council of Australia (ISCA) Infrastructure Sustainably rating process for an upcoming Major Project Committed to the principles of sustainable development with responsible business practices Spark Infrastructure I Investor Presentation I August 2020 36#37INFRASTRUCTURE FOR THE FUTURE CAPITAL MANAGEMENT PRUDENT CAPITAL MANAGEMENT WILL DELIVER GROWTH IN ASSET BASE Spark Infrastructure I Investor Presentation | August 2020 37#38BUSINESS OBJECTIVE INFRASTRUCTURE FOR THE FUTURE CAPITAL ALLOCATION HIERARCHY Funding is prioritised toward Value Enhance investment in existing businesses Value Enhance Regulated Assets RAB growth in regulatory determinations Actionable ISP projects (e.g. Project EnergyConnect) Renewable Energy Zones (e.g. Central West) VPN, SAPN, TransGrid Value Enhance Contracted Connection Assets Value Build Contracted Renewables • New renewable connections Solar, Wind Transmission infrastructure (e.g. NETI) . Battery storage • Grid-scale storage, micro-grids and other grid-assets necessary to support energy transition Renewable Energy Zones, Green Hydrogen, Virtual Power Plants • TransGrid (transmission) Spark Infrastructure VPN, SAPN (distribution opportunities) Value Acquire Essential Services Infrastructure Complementary asset opportunities, and potential diversification Assets with organic growth options • Assets supporting the energy transition Pre-emptive rights on existing assets Spark Infrastructure . Pipeline of Growth can be fully funded through DRP and substantial Debt Capacity Assumes Distribution Reinvestment Plan (DRP) will remain active; scope of funds raised expanded to support a broader range of growth opportunities Spark Infrastructure is on a credit rating glide path from Baa1 as regulatory resets reduce FFO/Net Debt ratio but is committed to investment grade rating Additional debt products such as convertible bonds or an Australian medium-term note (AMTM) will be considered when appropriate Growth supported by AEMO's 2020 ISP + VPN/SAPN regulatory submissions Spark Infrastructure I Investor Presentation | August 2020 38#39INFRASTRUCTURE FOR THE FUTURE CAPITAL PIPELINE - FULLY FUNDED 199 153 121 Indicative Growth Capex (Proportionate $m) I 368 | (309) (638) (647) (548) 6,466 (423) Indicative RCAB (Proportionate $m) CAGR 6.2% with Renewables Growth CAGR 4.3% BAU + ISP Growth (8,722) 2016 2017 2018 2019 2020 2021 2022 2023 2024 ■ VPN SAPN ■TGD Renewables ■ VPN 2019 ■SAPN 2024 ■TGD (RAB) ■TGD (CAB) Renewables 199 153 121 Indicative Funding (Proportionate $m) 368 (309) RAB growth supported by AEMO's 2020 ISP + VPN/SAPN regulatory submissions (638) (647) (548) . Contracted growth supported by AEMO ISP (423) Pursuing renewable development opportunities Growth fully funded through DRP and debt capacity Spark Infrastructure committed to investment grade ratings (1) 2016 2017 2018 2019 2020 ■DRP ■Asset Level Funding 2021 2022 Retained Cash/Corporate Debt 2023 2024 SAPN values derived from SA Power Networks Final Determination - differential of annual opening RAB value vs closing RAB value, adjusted for SKI Financial Year (2) VPN values based on CitiPower and Powercor Regulatory Proposals submitted 31 January 2020 - differential of annual opening RAB value vs closing RAB value, adjusted for SKI Financial Year Renewables growth equivalent to capex investment of 1 x Bomen Solar Farm (~$180m) per year in 2021-2024 (3) (4) TransGrid includes regulatory RAB growth with QNI Minor and VNI Minor, indicative connections of c5.5GW and allowances of c$4.0bn for Project EnergyConnect and HumeLink (based on AEMO 2020 Modelled Costs) Spark Infrastructure I Investor Presentation | August 2020 39#40INFRASTRUCTURE FOR THE FUTURE CLOSING REMARKS DELIVERING GROWTH IN ASSET BASE WITH SUSTAINABLE YIELD Spark Infrastructure I Investor Presentation | August 2020 40#41INFRASTRUCTURE FOR THE FUTURE KEY ACTIVITIES FOR 2H20 Continue safe and reliable operations while developing strong pipeline for future growth Key Activities • Continue safe and reliable operations in COVID-19 environment; maintain robust balance sheet and strong support from debt markets Project EnergyConnect initial CPA lodged 29 June 2020, a Final CPA is expected in Q3 with the approval process expected to take the remainder of the year • Other major ISP preliminary work to commence; VNI, HumeLink . VPN tax appeal was heard by the Full Federal Court on 21 August, timing of decision unknown but estimated to be late 2020 VPN regulatory proposal process to continue through 2H20; draft expected in September • Bomen Solar Farm commenced full operations in 2H20 Critical advocacy and leadership in important regulatory processes - 2022 RORI, Inflation, REZ framework and Post 2025 NEM design Capital growth and distributions underpinned by strong operational cash flows Spark Infrastructure I Investor Presentation I August 2020 41#42INFRASTRUCTURE FOR THE FUTURE OUTLOOK AND DISTRIBUTIONS Delivering strong growth and sustainable yield into the future Outlook • • SAPN (May 2020) and VPN (April 2021) regulatory determinations deliver revenue certainty for next 5 years Expecting good customer and regulatory support for opex and capex allowances for VPN determination; based on SAPN recent outcomes ⚫ Growth agenda for regulated and contracted assets at TransGrid is substantial, supported by AEMO's 2020 ISP Organic RCAB CAGR growth expected over the next 5 years of over 4% p.a. • Well positioned and disciplined approach for further opportunities in contracted renewables and storage • • · Substantial balance sheet capacity and on-going DRP expected to be sufficient to fund growth pipeline, whilst maintaining investment grade rating Will retain strongly defensive qualities, e.g. regulated assets to continue to exceed 85% of total assets Other inorganic opportunities will be assessed on highly selective and disciplined basis Distribution guidance . Reconfirmed distribution guidance for FY20 of at-least 13.5cps (2H20 at least 6.5cps), subject to business conditions Distributions expected to be covered by look-through net operating cash flows ⚫ DRP to remain in operation, to fund growth pipeline Investment mandate of essential services infrastructure incorporates electricity, gas and water, with a strong focus on growth and supporting the energy transition to lower carbon emissions Spark Infrastructure I Investor Presentation | August 2020 42#43INFRASTRUCTURE FOR THE FUTURE APPENDIX Spark Infrastructure | Investor Presentation | August 2020 43#44INFRASTRUCTURE FOR THE FUTURE KEY METRICS Distributions, RAB, credit metrics and gearing SECURITY METRICS Market price at 21 August 2020 Market capitalisation DISTRIBUTIONS HY 2020 actual Comprising: - Loan Note interest - Tax deferred amount 2020 Guidance CREDIT RATINGS Investment portfolio credit ratings Spark Infrastructure level credit rating SPARK INFRASTRUCTURE Total RAB and CAB (Spark Infrastructure share) Gross debt at Spark Infrastructure level SA POWER NETWORKS $m $2.18 RAB (1) 4,372 $3.8 billion Net debt 3,225 Net debt/RAB 73.8% 7.00cps VICTORIA POWER NETWORKS $m RAB (including AMI) 6,520 3.50cps Net debt 4,666 3.50cps Net debt/RAB 71.6% 13.50cps TRANSGRID $m SA Power Networks: A- Victoria Power Networks: A- TransGrid: Baa2 (4) Baa1 RAB (1) CAB(1)(2) 6,589 728 RCAB (1) (2) 7,317 Net debt (3) 5,836 Net debt/RAB (4) 87.4% $m Net debt/RCAB (3) 79.8% 6,601 180 (1) June 2020 estimate (2) Includes WIP/partially completed assets and investment property (3) Net Debt is calculated using gross debt less cash and adjusted for prescribed revenue over/(under) collection and includes TransGrid Services (4) Relates to TransGrid Obligor Group Spark Infrastructure I Investor Presentation I August 2020 44#45INFRASTRUCTURE FOR THE FUTURE TAX LITIGATION AND EFFECTIVE TAX RATE Federal court judgement was that gifted assets and cash contributions should be treated as assessable income Context In February 2019, the Federal Court handed down its judgement with effect that assets transferred to VPN from customers (i.e. gifted assets) should be treated as assessable income to VPN; and for assets constructed by VPN whereby the customer contributes to the cost of construction of such assets, the cash contribution should be treated as assessable income VPN subsequently appealed both matters to the Full Federal Court, with the appeal heard on 21 August 2020. The timing of when a decision will be handed down is unknown but is estimated to be late 2020 The impact to Spark Infrastructure was recognition of a $68.8m tax liability in respect of 2015-18, this amount was paid in full in two tranches in 2019 and 2020. The below table sets out the tax liabilities for the whole Spark Infrastructure group to date along with the timing of payment of liabilities: Spark Infrastructure Impact Tax Liability - payable Tax Paid cash flow Normalised Tax 2019 Tax Liability 2018 Tax Liability 1HY 2HY Total 19.0 19.0 37.9 8.5 8.5 16.9 2015 14.8 2016 17.4 2017 2018 2019 HY2020 Total 19.7 16.9 37.9 6.1 113.0 38.7 74.3 113.0 Spark Infrastructure Underlying Tax Paid per Cash Flow Reconciliation Total Tax Paid per Statutory Cash Flow 74.3 Less Historical Tax Paid (2015-18) (34.4) Less Tax Instalments Paid in Relation to 2020 (6.1) Add 2019 Tax Liability Paid in 2019 4.2 (19.0) Underlying 6 Months Tax Paid in relation to 2019 19.0 Should decision be upheld by Full Federal Court, Spark Infrastructure will continue to be a taxpayer on a go forward basis Effective cash tax rate approximately 14% of distributions from 2020 Future distributions will contain franking credits to the maximum extent possible, expected from March 2021 Distribution onwards. Spark Infrastructure has paid tax to date of $113.0m Should VPN be successful on either or both matters: Less H2 2019 Tax Liability Effective cash tax rate on a go forward basis expected to reduce by approximately 6% in the short term until reinstated tax losses are recouped If successful on both matters, circa $87m of prior year tax payments re SAPN/SIH2 are expected to be recovered (subject to any appeal to the High Court) Other impacts not expected to be material: if tax deferred at VPN level (expected but short-term timing only), Spark Infrastructure will pay tax on incremental unfranked dividends received Spark Infrastructure I Investor Presentation | August 2020 45#46INFRASTRUCTURE FOR THE FUTURE NETWORK BUSHFIRE UPDATE Not expected to have a material impact upon the businesses . . SA Power Networks South Australia experienced a number of fires between mid-November 2019 and late January 2020. Across those fires the damage to electricity infrastructure has been estimated between $5m- $10m SA Power Networks regulatory determinations includes cost pass throughs for “natural disaster events" which covers bushfires; however they will not be applying for the cost pass through for network damages as it is calculated as a return on capex, not on the value of the damage itself A class action claim has been filed against SA Power Networks in relation to the Yorke Peninsula fire The AER accepted a late submission in February 2020 seeking additional funding for inevitable increases in liability insurance premiums. This has resulted in an increase to 2020-25 revenue of approximately $16m TransGrid Damage was recorded to assets in the northern and southern parts of NSW with interruptions also recorded on the Queensland to NSW interconnector (QNI) and the Victoria and NSW Interconnector (VNI) TransGrid's regulatory determination includes cost pass throughs for "natural disaster events" which covers bushfires The National Electricity Rules (NER) require that the event must meet a materiality threshold being 1% of the maximum allowed revenue (MAR) for the relevant year (the threshold is therefore $7.6m for TransGrid) TransGrid expects to meet the threshold and have requested and received approval from the AER for an extension of time from 90 to 180 business days from the end of the fires (2 March 2020) to submit the application. This means TransGrid have until 13 November 2020 to lodge the application Spark Infrastructure I Investor Presentation I August 2020 46#47INFRASTRUCTURE FOR THE FUTURE CONSISTENT SERVICE OUTPERFORMANCE Victoria Power Networks (1) 2017 regulatory year 2018 regulatory year 2019 regulatory year H1 2020 regulatory year(2) SA Power Networks (1) 2016/17 regulatory year 2017/18 regulatory year 2018/19 regulatory year 2019/20 regulatory year TransGrid(¹) 2016 calendar year 2017 calendar year 2018 calendar year 2019 calendar year(2) STPIS $m 36 Being recovered in 2019 and 2020 regulatory years 20 To be recovered in 2021 regulatory year 26 To be recovered in 2022 regulatory year 8 STPIS $m 23 36 30 39 STPIS $m To be recovered in 2023 regulatory year Recovered in 2018/19 regulatory year To be recovered in 2019/20 regulatory year To be recovered in 2020/21 regulatory year To be recovered in 2021/22 regulatory year 15 16 17 14 Recovered in 2017/18 regulatory year Recovered in 2018/19 regulatory year Being recovered in 2019/20 regulatory year To be recovered in 2020/21 regulatory year Our investment businesses are delivering high reliability to customers (1) Service Target Performance Incentive Scheme (STPIS) 100% basis (2) Preliminary estimate Spark Infrastructure I Investor Presentation I August 2020 47#48INFRASTRUCTURE FOR THE FUTURE UNREGULATED REVENUES (100% BASIS) Victoria Power Networks ($m) Beon Energy Solutions HY 2020 104.2 HY 2019 Variance 101.0 3.2 11.5 11.2 0.3 0.6 0.5 0.1 3.1 2.3 0.8 4.5 13.2 (8.7) 123.8 128.2 (4.4) HY 2019 Variance 151.7 98.3 53.4 1.0 0.8 0.2 2.1 2.0 0.1 0.4 0.9 (0.5) 1.3 1.8 (0.5) 156.5 103.8 52.7 HY 2020 HY 2019 Variance 54.0 66.6 (12.6) 2.5 2.4 0.1 6.5 5.4 1.1 63.0 74.4 (11.4) Service Level Agreement Revenue Telecommunications Joint Use of Poles Other TOTAL SA Power Networks ($m) Energy Infrastructure and Solutions. Facilities Access / Dark Fibre Asset Rentals Sale of Salvage Other TOTAL TransGrid ($m) Infrastructure Services Property Services Telecommunication Services TOTAL HY 2020 Spark Infrastructure | Investor Presentation | August 2020 48#49INFRASTRUCTURE FOR THE FUTURE SEMI REGULATED REVENUES (100% BASIS) Victoria Power Networks ($m) Public Lighting New Connections Special Reader Activities Service Truck Activities Recoverable Works Specification and Design Other TOTAL SA Power Networks ($m) Public Lighting Metering Services Pole/Duct Rental Other Negotiated Services (1) TOTAL (2) HY 2020 HY 2019 Variance 5.9 6.1 (0.1) 7.7 7.1 0.6 2.3 2.4 (0.1) 3.1 2.9 0.2 0.6 0.7 (0.0) 6.0 6.0 (0.0) 4.5 4.0 0.5 30.1 29.1 0.9 HY 2020 HY 2019 Variance 8.2 11.9 (3.7) 7.6 7.8 (0.2) 2.5 2.2 0.3 22.3 24.8 (2.5) 40.6 46.7 (6.1) (1) Includes Asset Relocation and Embedded Generation (2) Does not include Alternative Control Services (ACS) revenue, which is reported as part of DUOS revenue Spark Infrastructure I Investor Presentation | August 2020 49#50INFRASTRUCTURE FOR THE FUTURE REGULATED PRICE PATH CPI minus X(1) CPI (%) Actual CitiPower X-Factor Expected movement in revenue (3) % CPI (%) Actual Powercor X-Factor (Forecast) (Forecast) Expected movement in revenue (3)% Year 1 (2) 2.50 Year 1 (2) 2.50 (1 Jan 16) (2.50) (1 Jan 16) (2.50) Year 2 1.02 Year 2 1.02 0.40 0.62 4.68 -3.71 (1 Jan 17) (2.35) (1 Jan 17) (2.35) Year 3 1.93 Year 3 1.93 -0.05 1.99 -0.81 3.08 (1 Jan 18) (2.35) (1 Jan 18) (2.35) Year 4 2.08 Year 4 2.08 -0.12 2.20 -3.02 5.16 (1 Jan 19) (2.35) (1 Jan 19) (2.35) Year 5 (1 Jan 20) 1.59 (2.35) Year 5 1.59 -1.88 3.50 -2.40 4.03 (1 Jan 20) (2.35) . Regulated electricity network revenues are determined by a price path set according to the CPI-X(1) formula. A negative X-factor means a real increase in distribution tariffs • The regulatory pricing period currently commences from 1 January for Victoria Power Networks (CitiPower and Powercor) but will be adjusted to a 1 July from 2021, SA Power Networks and TransGrid are from 1 July each year Whilst CPI-X is the key underlying driver for year on year revenue movements, the revenue movements in reported results include adjustments for other factors (1) Whilst referred to as "CPI-X", the actual tariff increase formula used by the regulator is: (1+CPI)*(1-x)-1. Source: AER (2) No CPI-X was applied in 2016. The AER calculated the revenue cap as a dollar amount (3) Excludes over or under recovery and S factor revenue Spark Infrastructure I Investor Presentation I August 2020 50#51INFRASTRUCTURE FOR THE FUTURE REGULATED PRICE PATH CPI minus X(1) CPI (%) SA Power Networks Actual X-Factor Expected movement in revenue (2) CPI (%) SA Power Actual X-Factor Networks (Forecast) % (Forecast) Expected movement in revenue % CPI (%) Expected movement TransGrid (3)(4) Actual X-Factor in (2) (2) revenue (Forecast) % Year 1 1.72 Year 1(5) Year 1 n/a 28 -26.80 n/a -7.30 n/a n/a (1 Jul 15) (2.50) (1 Jul 20) (1 Jul 18) n/a Year 2 1.69 Year 2 Year 2 1.80 -7.13 8.90 1.79 0.44 -0.97 2.79 (1 Jul 16) (2.50) (1 Jul 21) (2.27) (1 Jul 19) (2.45) Year 3 1.48 Year 3 Year 3 1.80 -0.94 2.40 1.79 0.44 -0.17 1.97 (1 Jul 17) (2.50) (1 Jul 22) (2.27) (1 Jul 20) (2.45) Year 4 1.91 Year 4 Year 4 -0.74 2.66 1.79 0.44 -1.98 0.47 (1 Jul 18) (2.50) (1 Jul 23) (2.27) (1 Jul 21) (2.45) Year 5 1.78 Year 5 Year 5 -0.85 2.65 1.79 0.44 -1.98 0.47 (1 Jul 19) (2.50) (1 Jul 24) (2.27) (1 Jul 22) (2.45) (1) Whilst referred to as CPI-X, the actual tariff increase formula used by the regulator is: (1+CPI)*(1-x)-1. Source: AER (2) Excludes over or under recovery and S factor revenue (3) The forecast X-Factor and forecast CPI for the periods from 1 July 2018 to 30 June 2023 are based on TransGrid's 2019-23 Transmission Revenue Determination issued by the AER on 18 May 2018. Actual X-factors are updated using actual cost of debt. (4) On 16 May 2018, the AER advised by letter a revocation and substitution of TransGrid's transmission determination for the 2014-18 regulatory period. The AER also advised by email on 23 April 2018 that adjustments ($10.8m) to the 2017-18 MAR are to be included in the price calculations for 2019-20. (5) SA Power Networks is not required to apply an X factor for 2020/21 because the AER set the 2020/21 expected revenue in its Final Determination. The expected revenue for 2020/21 is around 9.4% lower than the approved total annual revenue for 2019/20 in real terms, or 7.3 % lower in nominal terms. Spark Infrastructure | Investor Presentation | August 2020 51#52INFRASTRUCTURE FOR THE FUTURE CAPITAL EXPENDITURE (100% BASIS) Victoria Power $m SA Power Networks TransGrid Totals Networks HY 2020 HY 2019 HY 2020 HY 2019 HY 2020 HY 2019 HY 2020 HY 2019 Growth capex Growth capex - unregulated Non-network capex 206.2 147.8 62.4 77.6 85.6 21.2 354.2 246.6 105.7 106.1 105.7 106.1 24.1 22.4 24.1 22.4 Maintenance capex 105.3 73.1 114.7 145.3 94.9 80.7 314.9 299.1 Total 311.5 221.0 177.1 222.9 310.3 230.4 798.9 674.3 Spark share 152.6 108.3 86.8 109.2 46.6 34.6 286.0 252.1 Change vs pcp (%) 41.0% -20.5% 34.7% 13.5% $m Maintenance capex spend Regulatory Less inflation uplift Net regulatory depreciation on RAB depreciation HY 2020 HY 2019 HY 2020 HY 2019 HY 2020 HY 2019 HY 2020 HY 2019 Victoria Power Networks SA Power Networks 105.3 73.1 185.1 194.6 (50.3) (60.9) 134.9 133.7 114.7 145.3 164.2 156.8 (41.3) (36.9) 122.9 120.0 TransGrid Total Spark share 94.9 80.7 137.3 128.0 (59.3) (56.8) 78.0 71.2 314.9 299.1 486.6 479.4 (150.9) (154.6) 335.8 324.8 122.1 119.1 191.8 191.4 (53.8) (56.4) 138.0 135.0 (1) Non-network capex includes NCIPAP Spark Infrastructure | Investor Presentation I August 2020 52 52#53INFRASTRUCTURE FOR THE FUTURE INVESTMENT GRADE FUNDING Issuer Credit Rating (S&P / Moody's) Weighted Average Maturity (1) (31 December 2019) Net Debt at 30 June 2020 (31 December 2019) Net Debt/ RAB at 30 June 2020 (31 December 2019) Net Debt/ RAB + CAB at 30 June 2020 (31 December 2019) FFO / Net Debt at 30 June 2020 (31 December 2019) Victoria Power Networks A- / n/a 4.9 yrs (5.4 yrs) $4.666bn ($4.494bn) 71.6% (70.9%) SA Power Networks A- / n/a 6.4 yrs (6.9 yrs) $3.225bn ($3.232bn) 73.8% (74.5%) TransGrid n/a / Baa2 (2) (on USPP notes) 4.6 yrs (2) (5.1 yrs) $5.836bn (3) ($5.718bn) 87.4% (2) (88.9%) 79.8% (3) N/A N/A (80.2%) 14.4% (15.2%) Gross Debt at 30 June 2020 $4.737bn 17.8% (16.7%) $3.322bn 7.7% (2) (8.1%) $5.955bn (4) (31 December 2019) ($4.555bn) ($3.262bn) ($5.846bn) Spark Infrastructure has increased corporate facilities to $400m; rated Baa1 by Moody's (1) Weighted average maturity calculation is based on drawn debt at 30 June 2020 (2) Relates to the Obligor Group (3) Net Debt is calculated using gross debt less cash and adjusted for prescribed revenue over/(under) collection and includes TransGrid Services (4) Includes TransGrid Services Spark Infrastructure I Investor Presentation | August 2020 53#54INFRASTRUCTURE FOR THE FUTURE VICTORIA POWER NETWORKS DEBT AND HEDGING In May 2020, Victoria Power Networks replaced $353m in USPP and debt facilities maturing in June/July 2020 with $425m of debt facilities maturing in May/June 2022, completing all 2020 refinancing requirements ⚫ Next debt maturity is $425m in August 2021 Drawn Debt Maturity Profile at 30 June 2020 ($m 100%) 630 Capital Markets Debt ■Bank Debt Interest Rate Swaps Notional Principal Amount Average Contracted Fixed Interest Rate < 1 year $500m 1.9% 1-2 years $400m 2.3% 2-5 years $1,200m 2.2% 5+ years $1,845m 2.3% Total $3,945m 2.3% 425 300 560 398 448 340 250 200 225 142 150 165 86 107 91 100 53 30 38 Aug-21 Sep-21 Jan-22 May-22 Sep-22 Sep-23 Nov-24 Mar-25 Oct-26 Nov-26 Feb-27 Jun-27 Aug-27 Mar-28 Apr-28 Oct-28 Sep-29 Mar-30 Apr-30 Oct-31 Spark Infrastructure | Investor Presentation | August 2020 54#55INFRASTRUCTURE FOR THE FUTURE SA POWER NETWORKS DEBT AND HEDGING . ⚫ In February 2020, SAPN placed A$60 million of 8-year fixed rate Australian Medium-Term Notes (AMTNs) maturing in February 2028 • Next debt maturity is $53m in June 2022 Drawn Debt Maturity Profile at 30 June 2020 ($m 100%) ■Capital Markets Debt ■Drawn Bank Debt Notional Principal Average Contracted Interest Rate Swaps Amount Fixed Interest Rate < 1 year $336m 2.7% 1-2 years $311m 2.9% 2-5 years $1,034m 2.0% 5+ years $1,282m 3.6% Total $2,963m 2.9% 350 175 145 375 309 200 199 136 323 324 286 286 100 53 60 Jun-22 Aug-22 Sep-22 Oct-23 Dec-23 Aug-24 Jun-25 Aug-26 Sep-26 Jun-27 Feb-28 Aug-28 Aug-29 Aug-30 Aug-31 Spark Infrastructure | Investor Presentation | August 2020 55#56INFRASTRUCTURE FOR THE FUTURE TRANSGRID DEBT AND HEDGING • Next debt maturity is $1,550m in June 2021 ($1,185m drawn at 30 June 2020) Drawn Debt Maturity Profile at 30 June 2020 ($m 100%) 1,185 Jun-21 ■Capital Markets Debt ■Bank Debt Interest Rate Swaps Notional Principal Amount Average Contracted Fixed Interest Rate < 1 year $303m 2.6% 1-2 years $303m 2.8% 2-5 years $2,729m 2.6% 5+ years $1,663m 2.3% Total $4,996m 2.6% 900 635 635 490 491 336 336 269 256 152 169 Jun-22 Jun-23 Jun-24 Nov-24 Jun-25 Sep-26 Oct-27 Mar-29 Oct-29 Sep-31 Oct-32 75 Sep-33 25 Oct-34 Note: Information above relates to TransGrid Obligor Group and TransGrid Services Spark Infrastructure | Investor Presentation 1 August 2020 56#57INFRASTRUCTURE FOR THE FUTURE UNDERLYING LOOK-THROUGH NET OPERATING CASH FLOW (NOCF) HY 2020 HY 2019 440.1 EBITDA ( 88.8) less: Net finance charges (cash) (138.0) (17.5) 195.9 ( 26.1) 169.8 158.7 120.5 126.2 less: Net regulatory depreciation Non cash/net working capital movements Investment portfolio operating cash flow Other Spark net costs SKI look-through operating cash flow SKI distributions to Securityholders Distributions are fully covered by underlying look-through net operating cash flow by 1.4X (1) EBITDA excludes customer contributions and gifted assets and includes 'true-up' of DUOS/TUOS to revenue cap (2) Net regulatory and unregulatory depreciation is calculated based on actual inflation (3) Underlying HY2020 pay-out ratio 71% (HY2019 pay-out: 80%) / 4.5 year underlying pay-out ratio (2016- HY2020): 73% Spark Infrastructure I Investor Presentation | August 2020 SKI look-through operating cash flow SKI distributions to Securityholders 57#58INFRASTRUCTURE FOR THE FUTURE VPN LOOK-THROUGH NOCF (100%) $m 450 HY 2020 HY 2019 400 (82.4) 350 300 250 436.6 200 150 100 50 50 ( 134.9) (17.5) 201.8 413.7 (31.0 ) 170.8 0 EBITDA less: Net less: Net finance regulatory charges (cash) depreciation movements Non cash/net Operating working capital c/flow - before tax Tax paid Operating c/flow - HY 2020 EBITDA Note re maintenance capex: Net regulatory depreciation is a proxy for maintenance capex. It is calculated as regulatory depreciation net of actual CPI uplift on RAB CPI uplift on RAB was estimated by: CPI uplift on RAB for H1 2020 is 1.59%; CPI uplift on RAB for H1 2019 was 2.08% CPI is based on 'All groups CPI' for weighted average of 8 capital cities, not seasonally adjusted (Source: ABS). June on June (released July) Spark Infrastructure | Investor Presentation | August 2020 ( 84.1) (133.7) (14.7) 181.2 less: Net finance charges (cash) less: Net regulatory depreciation Non cash/net working capital movements Operating c/flow - HY 2019 58#59INFRASTRUCTURE FOR THE FUTURE SA POWER NETWORKS LOOK-THROUGH NOCF (100%) HY 2020 HY 2019 $m 350 (66.3) 300 250 200 361.6 150 100 50 (122.9) (14.6) 157.9 ( 4.0 ) 337.8 153.9 ( 64.4) ( 120.0) (29.6) 123.8 (1.7) 122.1 0 EBITDA less: Net less: Net finance regulatory charges (cash) depreciation Non cash/net Operating working capital c/flow - before movements Tax paid tax Operating c/flow - after tax EBITDA less: Net less: Net finance regulatory charges (cash) depreciation Non cash/net Operating working capital c/flow - before movements Tax paid Operating c/flow - after tax tax Note re maintenance capex: Net regulatory depreciation is a proxy for maintenance capex. It is calculated as regulatory depreciation net of actual CPI uplift on RAB CPI uplift on RAB was estimated by: In H1 2020: actual December 2018 CPI of 1.84% was applied, with 50% assumed to apply to H1 2020; In H1 2019: actual December 2018 CPI of 1.78% was applied, with 50% assumed to apply to H1 2019 CPI is based on 'All groups CPI' for weighted average of 8 capital cities, not seasonally adjusted (Source: ABS). December on December (released January) for the regulatory period commencing 1 July Spark Infrastructure | Investor Presentation I August 2020 59#60INFRASTRUCTURE FOR THE FUTURE TRANSGRID LOOK-THROUGH NOCF (100%) Notes: $m 350 300 (106.1) 250 200 326.6 150 100 50 HY 2020 (78.0) 12.9 129.6 352.0 EBITDA less: Net finance charges (cash) less: Net regulatory depreciation Non cash/net working capital movements Operating c/flow - HY 2020 EBITDA (109.2) less: Net finance charges (cash) HY 2019 (71.2) (6.8) 164.8 less: Net regulatory depreciation Non cash/net working capital movements Operating c/flow - HY 2019 Maintenance capex - Net regulatory depreciation is a proxy for maintenance capex. It is calculated as regulatory depreciation net of actual CPI uplift on RAB CPI uplift on RAB was estimated by: In H1 2020: Actual December 2019 CPI of 1.84% on opening RAB (1 July 2019), with 50% assumed to apply to H1 2020; In H1 2019: Actual December 2018 CPI of 1.78% on opening RAB (1 July 2018), with 50% assumed to apply to H1 2019 CPI is based on 'All groups CPI' for weighted average of 8 capital cities, not seasonally adjusted (Source: ABS). December on December (released January) for the regulatory period commencing 1 July Spark Infrastructure I Investor Presentation | August 2020 60#61INFRASTRUCTURE FOR THE FUTURE SHARE OF EQUITY PROFITS TO NPAT 100% Basis $m Spark Victoria Power Networks SA Power Networks TransGrid Infrastructure Share Regulated revenue Other revenue Total Income Operating costs EBITDA Depreciation and amortisation Net interest expense (excl subordinated debt) Subordinated debt interest expense Net Profit/(Loss) before Tax Tax expense 490.4 430.0 367.8 506.2 191.3 197.1 59.2 199.2 681.7 627.0 427.1 705.4 (252.5) (265.4) (114.1) (270.9) 429.2 361.6 313.0 434.5 (161.0) (155.1) (168.2) (180.2) (82.7) (72.2) (108.1) (92.1) (50.9) (36.1) (33.0) (47.6) 134.7 98.2 3.7 114.6 (42.0) (2.2) (21.7) Net Profit/(Loss) after Tax 92.7 95.9 3.7 93.0 Less: additional share of profit from preferred partnership capital (PPC) (1) (34.7) (17.0) Net Profit for Equity Accounting 92.7 61.2 3.7 76.0 Spark Infrastructure Share 45.4 30.0 0.6 76.0 Add: additional share of profit from PPC(1) 34.7 34.7 (2) Less: additional adjustments made to share of equity accounted profits 0.1 0.8 1.1 2.0 Share of Equity Accounted Profits 45.5 65.5 1.7 112.7 - Add: interest income from associates Total Income from Associates Interest income - other Interest expense (including borrowing costs) Interest expense Loan Notes General and administrative expenses Unrealised gain on derivatives - PPA Profit before Income Tax Income tax expense Net Profit after Income Tax Attributable to Securityholders (1) Under the partnership agreement, Spark Infrastructure is entitled to an additional share of profit in SA Power Networks (2) Includes adjustments made to distribution/transmission revenues to defer/accrue for amounts in excess of/under the regulated revenue cap to reflect that these amounts will be returned to/recovered from electricity consumers in future periods via adjustments to tariffs Spark Infrastructure I Investor Presentation | August 2020 24.9 4.9 29.9 70.4 65.5 6.6 142.6 0.4 (7.9) (58.8) (11.0) 8.1 73.4 (23.7) 49.7 61#62INFRASTRUCTURE FOR THE FUTURE SPARK INFRASTRUCTURE GROUP DIAGRAM Simplified corporate structure I I I BOMEN SOLAR FARM I I Dividends/interest/ loan repayments SECURITYHOLDERS Trust distributions Loan note interest payments SPARK INFRASTRUCTURE TRUST Dividends/interest/ loan repayments Trust distributions Dividends SPARK INFRASTRUCTURE HOLDINGS 1 SPARK INFRASTRUCTURE HOLDINGS 2 SPARK INFRASTRUCTURE ELECTRICITY ASSETS TRUST SPARK INFRASTRUCTURE HOLDINGS 3 SPARK INFRASTRUCTURE VICTORIA SPARK INFRASTRUCTURE SOUTH AUSTRALIA TAX CONSOLIDATED GROUP I Spark Infrastructure | Investor Presentation | August 2020 Dividends/interest/ loan repayments VICTORIA POWER NETWORKS SPARK SA PARTNERS Partnership distributions Trust distributions SPARK INFRASTRUCTURE ELECTRICITY OPERATIONS TRUST ↑ Trust distributions SA POWER NETWORKS TRANSGRID ASSET GROUP TRANSGRID OPERATING GROUP Interest payments 62#63INFRASTRUCTURE FOR THE FUTURE DISCLAIMER AND SECURITIES WARNING Investment company financial reporting - Adjustments are made to distribution and transmission revenues to defer/accrue for amounts in excess of/under the regulated revenue cap to reflect that these amounts will be returned to/recovered from electricity consumers in future periods via adjustments to tariffs. The financial reporting is based on TransGrid's special purpose financial statements for the year ended 30 June 2020 and half year ended 31 December 2019. Results have been adjusted by Spark Infrastructure to reflect the 6-month period to 30 June 2020. No offer or invitation. This presentation is not an offer or invitation for subscription or purchase of or a recommendation to purchase securities or any financial product. No financial product advice. This presentation contains general information only and does not take into account the investment objectives, financial situation or particular needs of individual investors. It is not financial product advice. Investors should obtain their own independent advice from a qualified financial advisor having regard to their objectives, financial situation and needs. Summary information. The information in this presentation does not purport to be complete. It should be read in conjunction with Spark Infrastructure's other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au. U.S. ownership restrictions. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or to any "U.S. person". The Stapled Securities have not been registered under the U.S. Securities Act or the securities laws of any state of the United States. In addition, none of the Spark Infrastructure entities have been registered under the U.S. Investment Company Act of 1940, as amended, in reliance on the exemption provided by Section 3(c)(7) thereof. Accordingly, the Stapled Securities cannot be held at any time by, or for the account or benefit of, any U.S. person who is not both a QIB and a QP. Any U.S. person who is not both a QIB and a QP (or any investor who holds Stapled Securities for the account or benefit of any US person who is not both a QIB and a QP) is an "Excluded US Person" (A "U.S. person", a QIB or "Qualified Institutional Buyer" and a QP or "Qualified Purchaser" have the meanings given under US law). Spark Infrastructure may require an investor to complete a statutory declaration as to whether they (or any person on whose account or benefit it holds Stapled Securities) are an Excluded US Person. Spark Infrastructure may treat any investor who does not comply with such a request as an Excluded US Person. Spark Infrastructure has the right to: (i) refuse to register a transfer of Stapled Securities to any Excluded U.S. Person; or (ii) require any Excluded US Person to dispose of their Stapled Securities; or (iii) if the Excluded US Person does not do so within 30 business days, require the Stapled Securities be sold by a nominee appointed by Spark Infrastructure. To monitor compliance with these foreign ownership restrictions, the ASX's settlement facility operator (ASX Settlement Pty Limited) has classified the Stapled Securities as Foreign Ownership Restricted financial products and put in place certain additional monitoring procedures. Foreign jurisdictions. No action has been taken to register or qualify the Stapled Securities in any jurisdiction outside Australia. It is the responsibility of any investor to ensure compliance with the laws of any country (outside Australia) relevant to their securityholding in Spark Infrastructure. No liability. No representation or warranty, express or implied, is made in relation to the fairness, accuracy or completeness of the information, opinions and conclusions expressed in this presentation. To the maximum extent permitted by law, each of Spark Infrastructure, all of its related bodies corporate and their representatives, officers, employees, agents and advisors do not accept any responsibility or liability (including without limitation any liability arising from negligence on the part of any person) for any direct, indirect or consequential loss or damage suffered by any person, as a result of or in connection with this presentation or any action taken by you on the basis of the information, opinions or conclusions expressed in the course of this presentation. You must make your own independent assessment of the information and in respect of any action taken on the basis of the information and seek your own independent professional advice where appropriate. Forward looking statements. No representation or warranty is given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, projections, prospects, returns, forward-looking statements or statements in relation to future matters contained in the information provided in this presentation. Such forecasts, projections, prospects, returns and statements are by their nature subject to significant unknown risks, uncertainties and contingencies, many of which are outside the control of Spark Infrastructure, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. Rounding. Amounts have been rounded to one or two decimal places (as the case may be). As a result, totals as correctly stated in this presentation may differ from individual calculations. Spark Infrastructure | Investor Presentation | August 2020 63