Investor Presentaiton

Comparison of 2014-19 and 2019-24 Determination Comparison of key assumptions Item Regulatory CPI Tax allowance Depreciation method for tax calculation Straight Line Diminishing Value 2014-19 2.42% 2019-24 2.42% Comments Consistent across regulatory periods Gamma 0.400 0.585 Cost of equity allowance 7.10% 5.70% Risk free rate 2.55% 2.04% Final outcome of Review of Regulatory Tax Approach changed tax depreciation calculation from straight-line method to diminishing value method causing lower tax allowance over time Increase driven by shift from 2013 rate of return guideline to 2018 rate of return instrument Difference driven by shift from 2013 rate of return guideline to the 2018 rate of return instrument as presented by component below Difference driven by updated Australia sovereign yield curve Equity beta 0.7 0.6 Lower cost of equity allowed in the WACC Market risk premium 6.5% 6.1% Lower cost of equity allowed in the WACC Equity funding 40% 40% Cost of debt allowance 5.93% 6.51% 4.98% 5.74% Debt margin assumption BBB 2/3 BBB 1/3 A Unchanged Difference driven by updated debt forward yield curves and changed margin assumption Lower cost of debt allowed in the WACC Better Ausgrid Together Source: 2014-19 AER Determination for Ausgrid, 2019-24 AER Determination for Ausgrid 43 43

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