Performance summary and key performance indicators

  • Lines of business

    • Established Transmission, Gas Distribution and Electricity Distribution & Generation as lines of business, with common management teams, each with a responsible Executive Director
    • Commenced process of separating out functions and processes that support multiple lines of business
    • Previously separated UK and US functions combined – including IS, human resources and procurement

  • Operating model

    • Established a shared services organisation, based in the UK and US to support the lines of business
    • Commenced implementation of new back office systems, to provide a common platform in the future
    • Commenced reviews within each line of business, shared services and information services to identify best practices within different parts of our UK and US operations, so that they can be shared across National Grid

  • New businesses

    • Investment and integration of KeySpan Corporation acquired during 2007 for cash consideration of £3.8 billion, together with acquired debt of £2.2 billion
    • Integration of Rhode Island gas distribution operations acquired during 2006/07 for cash consideration of £269 million

  • Exit non-core businesses

    • Sale of UK and US wireless infrastructure operations on 3 April and 15 August 2007 for £2.6 billion
    • Sale of Basslink electricity interconnector on 31 August 2007 for proceeds of £485 million
    • Entered into agreement on 31 March 2008 to sell the Ravenswood generation station for $2.9 billion (£1.4 billion)

Further information on our performance is included in the Performance against our objectives section. Additional information on delivering our stategy, operational performance and financial performance is included in Transmission, Gas Distribution, Electricity Distribution & Generation and non-regulated businesses and other sections.

* Excludes KeySpan – will be included in key performance indicators from 1 April 2008 onwards and reported in the Annual Report and Accounts 2008/09
† Includes operations acquired with KeySpan for the period from 24 August 2007 to 31 March 2008 or as at 31 March 2008
+ Adjusted operating profit and adjusted earnings per share exclude exceptional items, remeasurements and stranded cost recoveries (see financial performance)
°Employee lost time injury frequency rate for 2006/07 has been restated to align UK and US definitions of a lost time injury (see operating performance)
^ Includes KeySpan operations on a pro forma financial performance basis assuming the acquisition occurred on 1 April 2007

Safety

Links:

Further information on safety
can be found here

Injuries to the public*

(number)

Target: zero

Bar chart showing number of injuries to the public (excluding KeySpan) for 2004/05 through to 2007/08

Employee lost time injury frequency rate*°

(per 100,000 hours worked)

Target: zero

Bar chart employee lost time injury frequency rate per 100,000 hours worked (excluding KeySpan) for 2004/05 through to 2007/08

Links:

Further information
on our UK gas mains
replacement programme
can be found here

Employee sickness absence rate* (%)

Target: zero work-related absences

Bar chart showing employee sickness absence rate (excluding KeySpan) as a percentage for 2004/05 through to 2007/08

UK gas distribution mains replacement (km)

Target: 1,835 km in 2007/08

Bar chart showing UK gas distribution mains replacement in km for 2004/05 through to 2007/08

Efficiency

  • Completed integration of Rhode Island gas operations acquired in the previous year
  • Voluntary early retirement programme in the US accepted by 560 employees, as part of the integration of our operations following the acquisition of KeySpan
  • Cost reduction programmes undertaken in Transmission UK and Gas Distribution UK

Reliability

Links:

Further information on reliability can be found here here

Transmission UK electricity system reliability (%)

Target: 99.9999%

Bar chart showing Transmission UK electricity system reliability as a percentage for 2004/05 through to 2007/08

Transmission UK gas reliability (%)

Target: 100%

Bar chart showing Transmission UK gas reliability as a percentage for 2004/05 through to 2007/08

Transmission US system reliability (MWh)

Target: less than 264 MWh of losses

Bar chart showing Transmission US system reliability MWh for 2004/05 through to 2007/08

Gas Distribution UK network reliability (%)

Target: 99.999%

Bar chart showing Gas Distribution UK network reliability as a percentage for 2004/05 through to 2007/08

Electricity Distribution US network reliability* (mins)

Target: less than 110 to 120 mins of outages

Bar chart showing Electricity Distribution US network reliability (excluding KeySpan) as a percentage for 2004/05 through to 2007/08

Capital investment

Total capital investment† (£m)

Bar chart showing total capital investment as pounds million for 2004/05 through to 2007/08

Further information on our performance is included in the Performance against our objectives section. Additional information on delivering our stategy, operational performance and financial performance is included in Transmission, Gas Distribution, Electricity Distribution & Generation and non-regulated businesses and other sections.

* Excludes KeySpan – will be included in key performance indicators from 1 April 2008 onwards and reported in the Annual Report and Accounts 2008/09
† Includes operations acquired with KeySpan for the period from 24 August 2007 to 31 March 2008 or as at 31 March 2008
+ Adjusted operating profit and adjusted earnings per share exclude exceptional items, remeasurements and stranded cost recoveries (see financial performance)
°Employee lost time injury frequency rate for 2006/07 has been restated to align UK and US definitions of a lost time injury (see operating performance)
^ Includes KeySpan operations on a pro forma financial performance basis assuming the acquisition occurred on 1 April 2007

Talent, skills, engagement and performance

  • Over 200 senior managers, led by the Executive Directors, have been through our Performance for Growth programme, focusing on how to develop our employees, address skills gaps, increase employee engagement and coach for better performance
  • We have developed, and calibrated, a single set of performance measures for our senior managers
  • We achieved an 83.6% response rate to our employee engagement survey conducted in February 2008
  • We have upgraded and aligned our talent review process across National Grid, involving talent planning sessions across our lines of business and covering both the UK and the US

Inclusion and diversity

Proportion of female employees (%)

Bar chart showing proportion of female employees as a percentage for 2004/05 through to 2007/08. For 2007/08 figures are presented both including and excluding KeySpan

Proportion of black and minority ethnic employees (%)

Bar chart showing proportion of black and minority ethnic employees as a percentage for 2004/05 through to 2007/08. For 2007/08 figures are presented both including and excluding KeySpan

Further information on our performance is included in the Performance against our objectives section. Additional information on delivering our stategy, operational performance and financial performance is included in Transmission, Gas Distribution, Electricity Distribution & Generation and non-regulated businesses and other sections.

* Excludes KeySpan – will be included in key performance indicators from 1 April 2008 onwards and reported in the Annual Report and Accounts 2008/09
† Includes operations acquired with KeySpan for the period from 24 August 2007 to 31 March 2008 or as at 31 March 2008
+ Adjusted operating profit and adjusted earnings per share exclude exceptional items, remeasurements and stranded cost recoveries (see financial performance)
°Employee lost time injury frequency rate for 2006/07 has been restated to align UK and US definitions of a lost time injury (see operating performance)
^ Includes KeySpan operations on a pro forma financial performance basis assuming the acquisition occurred on 1 April 2007

Stakeholder relations and community involvement

  • Over 350 equity investor roadshows in the year and presentations to debt investors in 17 countries
  • Reliability programme in the US to address customer service
  • Engaged independent experts to review our community investment activities
  • First official partner of Special Olympics Great Britain

Further information on our performance is included in the Performance against our objectives section. Additional information on delivering our stategy, operational performance and financial performance is included in Transmission, Gas Distribution, Electricity Distribution & Generation and non-regulated businesses and other sections.

* Excludes KeySpan – will be included in key performance indicators from 1 April 2008 onwards and reported in the Annual Report and Accounts 2008/09
† Includes operations acquired with KeySpan for the period from 24 August 2007 to 31 March 2008 or as at 31 March 2008
+ Adjusted operating profit and adjusted earnings per share exclude exceptional items, remeasurements and stranded cost recoveries (see financial performance)
°Employee lost time injury frequency rate for 2006/07 has been restated to align UK and US definitions of a lost time injury (see operating performance)
^ Includes KeySpan operations on a pro forma financial performance basis assuming the acquisition occurred on 1 April 2007

Climate Change

Percentage reduction against baseline*

Target: 80% by 2050

• We have increased our target for the reduction in greenhouse gas emissions against our baseline from a 60% reduction by 2050 to an 80% reduction by 2050

Bar chart showing percentage greenhouse gas reduction against our baseline (excluding KeySpan) for 2004/05 through to 2007/08

Historically contaminated land

  • Land contamination issues managed at 529 sites*
  • Environmental work stages completed at 189 sites*
  • Of these, 33 sites included remediation*

Protecting the environment

Significant direct environmental incidents* (number)

Target: zero

Bar chart showing significant direct environmental incidents (excluding KeySpan) as a number for 2004/05 through to 2007/08

Total value of fines from prosecutionsand citations* ($)

Target: zero

Bar chart showing total value of fines from prosecutions and citations (excluding KeySpan) in dollars for 2004/05 through to 2007/08

Further information on our performance is included in the Performance against our objectives section. Additional information on delivering our stategy, operational performance and financial performance is included in Transmission, Gas Distribution, Electricity Distribution & Generation and non-regulated businesses and other sections.

* Excludes KeySpan – will be included in key performance indicators from 1 April 2008 onwards and reported in the Annual Report and Accounts 2008/09
† Includes operations acquired with KeySpan for the period from 24 August 2007 to 31 March 2008 or as at 31 March 2008
+ Adjusted operating profit and adjusted earnings per share exclude exceptional items, remeasurements and stranded cost recoveries (see financial performance)
°Employee lost time injury frequency rate for 2006/07 has been restated to align UK and US definitions of a lost time injury (see operating performance)
^ Includes KeySpan operations on a pro forma financial performance basis assuming the acquisition occurred on 1 April 2007

Profit and cash flow

Adjusted operating profit†+ (£m)

 

Bar chart showing adjusted operating profit as pounds millions for 2004/05 through to 2007/08

Adjusted earnings per share†+ (pence)

Target: zero

Bar chart showing adjusted earnings per share in pence for 2004/05 through to 2007/08

Cash generated by
continuing operations† (£m)

Bar chart showing cash generated by continuing operations as pound millions for 2004/05 through to 2007/08

Synergy savings
• Rhode Island $18 million target achieved
• $38 million of KeySpan target of $200 million achieved

Returns from investment

Return on equity^ (% – three year average)

 

11.8%

Financial discipline

Interest cover†

Long-term target: range 3.0-3.5

Bar chart showing interest cover for 2004/05 through to 2007/08

Share repurchases (£bn)

 

£1.5bn

Shareholder returns

Dividend growth (%)

Target: 7% to 31 March 2008 (8% to 31 March 2012)

Bar chart showing dividend growth as a percentage for 2004/05 through to 2007/08

Total shareholder return (% – three year cumulative)

 

Bar chart showing total shareholder return as a three year cumulative percentage for 2004/05 through to 2007/08

Further information on our performance is included in the Performance against our objectives section. Additional information on delivering our stategy, operational performance and financial performance is included in Transmission, Gas Distribution, Electricity Distribution & Generation and non-regulated businesses and other sections.

* Excludes KeySpan – will be included in key performance indicators from 1 April 2008 onwards and reported in the Annual Report and Accounts 2008/09
† Includes operations acquired with KeySpan for the period from 24 August 2007 to 31 March 2008 or as at 31 March 2008
+ Adjusted operating profit and adjusted earnings per share exclude exceptional items, remeasurements and stranded cost recoveries (see financial performance)
°Employee lost time injury frequency rate for 2006/07 has been restated to align UK and US definitions of a lost time injury (see operating performance)
^ Includes KeySpan operations on a pro forma financial performance basis assuming the acquisition occurred on 1 April 2007