Investor Presentaiton

Transformation Program Comprehensive program to deliver first quartile cost efficiencies while improving customer, operational and safety outcomes Objectives Scope . • • . Improve the customer experience: Better understand our customers' needs and deliver a better service experience through a programme of continuous improvement in our engagement channels and underlying service delivery Establish a culture of staff empowerment: Change the ways of working across Ausgrid to tap the potential of our skilled workforce, through localised decision-making ability and accountability for continuous improvement within parameters of controlled risk Reduce operating costs: Right-size the workforce and shape the organisation to be a flatter organisation with the frontline closer to the CEO Reduce work volumes: Make better use of data to balance cost, risk and performance in the planning of work, so we prioritise work that drives the greatest improvement in risk and performance outcomes, whilst sustaining the overall condition of our asset base Improve non-labour productivity: Pursue cost efficiencies across all non-labour categories, balanced with the sustainability procurement objectives including total cost of ownership, environmental, social and government factors Programs running from FY20 to FY24, designed to streamline processes and find more effective ways of conducting business through a series of people, process and technology improvements: Operations; Customer; Supply Chain; and Enabling Services Progress • • • The Transformation Program has already contributed to a 28% reduction in regulated SCS opex from $545 million in FY16 to $393 million in FY20 (excluding reform costs) FY20 transformation delivered successfully and ahead of schedule. 362 FTEs released following the FY20 Restructure. This exceeded the FY20 Business Plan target by 63 FTE and was delivered two months ahead of schedule due to our transparent consultation Continued reduction in non-labour costs (such as vegetation and fleet costs). Fleet size reduced by 250 vehicles, reducing vehicle maintenance and running costs by $1 million per annum Majority of savings for FY21 have already been locked in with limited delivery risk. Focus on increasing delivery certainty for future year opex targets via end-to-end process focus, transformation operating model enhancement and embedding change activities New customer centric organisational structure in place • FY21 savings have been agreed and targets 'locked in' to budgets Ο Outcomes Better Ausgrid Together The Transformation Program will be phased to consciously balance workforce reductions with employee engagement and technology implementation 17

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