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Investor Presentaiton

Balance sheet Balance sheet FY18-201 A$m, nominal FY18 FY19 FY20 Variance (FY19-20) Property, plant & equipment 16,212 16,735 16,925 190 Intangibles 3,981 3,671 3,641 (30) Assets held for sale 10 4 4 Fixed assets 20,203 20,410 20,570 160 Accounts receivable/contract assets 426 419 359 (60) Creditors (301) (292) (266) 26 Inventories 39 38 31 (7) Other current liabilities (8) (8) (11) (3) Net working capital 156 157 113 (44) Deferred tax assets/(liabilities) (6) 206 305 99 Provisions (472) (530) (399) 131 Derivatives 55 (23) 155 178 Other non-current liabilities (42) (56) (75) (19) Deposits and unclaimed monies (2) (2) (2) Other assets/(liabilities) (467) (405) (16) 389 Borrowings (12,138) (13,003) (13,763) (760) Cash, deposits and investments 217 187 403 216 Other debt items Net debt (11,921) (12,816) (13,360) (544) Net assets Capital Reserves Retained earnings 7,971 7,346 7,307 (39) 8,847 8,890 8,920 30 13 (480) (711) (231) (889) (1,064) (902) 162 Equity 7,971 7,346 7,307 (39) Better Ausgrid Together Note: 1. FY20 numbers are unaudited and subject to revision Comments The increase in fixed assets of $160 million in FY20 is mainly driven by additions of $813 million offset by depreciation/amortisation of $639 million and disposal of assets of $14 million The decrease in accounts receivable/contract assets of $60 million in FY20 is mainly driven by the lower unread meter revenue accrual which reflects the lower tariffs following the AER Determination for the FY20-24 regulatory period and lower consumption in the last quarter of FY20 due to COVID-19 The increase in deferred tax assets/(liabilities) of $99 million in FY20 represents the tax impacts (30%) on the fair value movement of the cash flow hedges and the actuarial losses of the defined benefit plan The decrease in provisions of $131 million in FY20 mostly relates to employee exits through the FY20 Restructure The increase in derivatives of $178 million in FY20 is mostly due to the strengthening of the AUD against the EUR and USD and decrease in interest rates The increase in borrowings of $760 million in FY20 is mainly due to drawdowns under the Ausgrid's loan facilities (net drawdown of $243 million), fair value movements of $504 million due to the strengthening of the AUD against the EUR and USD, and the decrease in interest rates and capitalised ASF transaction costs of $16 million. Borrowings in the balance sheet are measured at fair value under accounting standards and translated at year end exchange rates. This differs from borrowings presented on page 27 which are measured at the relevant hedged rate The increase in cash of $216 million in FY20 is mostly due to the $200 million additional funds drawn down during COVID-19 The increase in reserves of $231 million in FY20 mainly relates to the decrease in the fair value of swaps during FY20 due to a reduction in interest rates 48
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