Investor Presentaiton

Credit metrics Ausgrid has headroom against key metric thresholds. Moody's and S&P have also recently reaffirmed Ausgrid's BBB/Baa1 credit ratings (both stable outlook) on 5 June and 29 June 2020 respectively Leverage Net debt/ RAB Net debt/EBITDA2 -<90.0% CFCR ³ Cash flow EBITDA / interest <1.4x <1.2x Legend FY15-19 reg. period 9.3x 3.6x 3.7x 1.7x 1.7x 1.6x 3.0x 79.1% 77.6% 75.9% 7.6x 7.4x FY20-24 reg. period FY18 FY19 FY204 FY18 FY19 FY204 FY18 FY19 FY204 FY18 FY19 FY204 • Bank covenant: <90.0% Net debt/RAB gearing has decreased from 79.1% to 75.9% as a result of lower debt funding of capex and debt repayments. Significant headroom maintained above bank covenant level FY20 net debt/EBITDA has increased as a result of lower FY20 revenues from the 2019-24 AER Determination, the inclusion of remittal payments and temporary impact of COVID-19 on electricity consumption volumes Default: <1.2x Lock-up: <1.4x CFCR has remained at 1.6-1.7x with headroom above bank covenant levels FY20 EBITDA/interest has also reduced as a result of lower revenues from the AER Determination, the inclusion of remittal payments and COVID-19 Transformation program has resulted in substantial savings since 2016 with further savings to be delivered through this regulatory period Credit rating metrics FFO/debt is the primary credit metric assessed by S&P and Moody's, with historical outcomes disclosed in their reports outlined below FFO / debt FY18A FY19A FY20E MOODY'S 8.1% 8.4% 7.0-7.1% S&P Global 8.5% 8.6% 5.8-5.9% Source: Moody's and S&P credit rating reports Better Ausgrid Together MOODY'S 66 We regard Ausgrid's exposure to ongoing financial impacts associated with the coronavirus outbreak as manageable, given (1) the essential nature of the provided services which underpins demand for electricity, (2) the low price- elasticity of electricity demand, (3) the diverse customer base, and (4) the supportive regulatory framework allowing the group to recover revenue shortfalls in future periods. 5 June 2020 Notes: 1. Net debt presented at face value; 2. FY19 EBITDA normalised by adding back goodwill impairment; 3. Cash flows normalised by adding back reform costs; S&P Global 66 We have affirmed the ratings on Ausgrid based on our expectations that the company's FFO to debt will revert to 7% by the year ending June 30, 2022. This recovery is based on our expectations of upward adjustments related to the under-recovery of revenues against regulatory allowances from fiscals 2020 and 2021 and Ausgrid achieving its forecast cost savings. 29 June 2020 4. FY20 numbers are unaudited and subject to revision. Audited accounts are expected to be available on 28 August 2020 26

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