Investor Presentaiton

2019-24 Final Determination - revenue The AER determines the maximum revenues that Ausgrid can earn through a theoretical economic building-block methodology, prior to the commencement of each regulatory period that resets every 5 years ($m, nominal) FY20 FY21 FY22 FY23 FY24 Total Return on capital 897 910 917 918 917 4,559 Regulatory depreciation 103 134 164 193 193 787 Operating expenditure 474 486 499 513 528 2,500 Efficiency carryover 19 20 20 21 21 101 Remittal decision (329) 0 0 0 0 (329) Corporate income tax 28 23 26 29 26 132 Building block revenue 1,193 1,573 1,627 1,674 1,685 7,752 Smoothed revenue 1,506 1,517 1,537 1,559 1,585 7,704 Building Blocks Return on capital Regulatory depreciation Operating expenditure Efficiency carryover (incentive schemes and other adjustments) Corporate income tax Description A return (nominal, post-tax) on the assets deployed in the provision of regulated services, with this return being commensurate with the efficient financing costs of a benchmark efficient entity with a similar degree of risk Recoupment of the straight-line depreciation of the network assets, and calculated by reference to the value of assets used for the delivery of regulated services and their economic life The costs of operating and maintaining the distribution network For the FY19-24 period there is a CESS revenue reward due to capex underspend over FY14-19. There is also a negative revenue adjustments relating to over-recovered revenue in the FY15-19 period In the FY24-29 period Ausgrid will also be able to earn a revenue reward through the EBSS if it underspends opex over FY19-24 An amount that reflects the corporate income tax obligations of a benchmark network service provider Ausgrid 21 21

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