Company: NEWEN
Filing Date: 2025-05-15
Form Type: 6-K
Source: 0001654954-25-005651
Chunk: 76

Company: NATIONAL GRID PLC
Filing Date: 2025-05-15
Form: 6-K
Chunk 76
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 RoE is underpinned by our regulated asset base. This year, to improve how the metric reflects business performance, we updated our calculation to 'amortise' goodwill and indefinite-lived intangible assets in the denominator over 20 years, to reflect the estimated period over which the value related to the premium paid on acquisition would be realised. For the reasons noted above, no reconciliation to IFRS has been presented, as we do not believe it would be practical.

Calculation: Regulatory financial performance including a long-run inflation assumption (2% CPIH for RIIO-2), less adjusted interest and adjusted taxation divided by equity investment in assets:

● adjusted interest removes accretions above long-run inflation rates, interest on pensions, capitalised interest in regulated operations and unwind of discount rate on provisions;

● adjusted taxation adjusts the Group taxation charge (before exceptional items and remeasurements) for differences between IFRS profit before tax and regulated financial performance less adjusted interest; and

● equity investment in assets is calculated as opening UK RAV, opening US rate base, goodwill and indefinite-lived intangibles (adjusted for 'asset swap' transactions and the 'value realisation' of goodwill over 20 years), plus opening net book value of NGV and other activities (excluding certain pensions, tax and commodities balances) and our share of JVs and associates, minus opening net debt as reported under IFRS restated to the weighted average sterling-dollar exchange rate for the year.

#### Group RoE
| Year ended 31 March                                                |    2025 |    2024 |
|:-------------------------------------------------------------------|--------:|--------:|
| £m                                                                 |      £m |         |
| Regulated financial performance                                    |   4,673 |   4,022 |
| Operating profit of other activities - continuing and discontinued 
 operations                                                         |     275 |     467 |
| Group financial performance                                        |   4,948 |   4,489 |
| Share of post-tax results of joint ventures and                    
 associates1                                                        |     100 |     174 |
| Non-controlling interests                                          |      -3 |      -1 |
| Adjusted total Group interest charge (including                    
 discontinued)                                                      |  -1,590 |  -1,613 |
| Total Group tax charge (including discontinued)                    |    -861 |    -983 |
| Tax on adjustments                                                 |       8 |     270 |
| Total Group financial performance after interest and               
 tax