Investor Presentaiton

2019-24 Final Determination The AER determines the maximum revenues that Ausgrid can earn over a five year regulatory period through a building- block methodology. Ausgrid's revenue cap regulatory regime provides revenue certainty ($million, 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 FY15-19 remittal adjustment (329) (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) FY15-19 remittal adjustment Corporate income tax Better Ausgrid Together 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 RAB, 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 A CESS revenue reward due to capex underspend over FY15-19. In the FY25-29 period, Ausgrid will also be able to earn a revenue reward through the EBSS if it underspends opex over FY20-24 A one-off negative revenue adjustments relating to over-recovered revenue in the FY15-19 period. This was unusually large given the prior revenue determination was not finalised until the final year of the five year regulatory period. This delay was caused by a disagreement between the prior owners of Ausgrid (NSW Government) and the AER An amount that reflects the corporate income tax obligations of a benchmark network service provider 19

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