National Grid 2009 Annual Report Download

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Annual Review
2 0 0 8 / 0 9
Focused on delivery.

Table of contents

  • Page 1
    Annual Review 2008/09 Focused on delivery.

  • Page 2
    ... the Members of National Grid plc 06 Shareholder information 29 Financial calendar 29 Dividends 29 Website and electronic communication 29 Shareholder Networking 29 Share dealing, individual savings accounts (ISAs) and ShareGift 29 Capital Gains Tax 29 Shareholdings Important Notice This document...

  • Page 3
    ... our processes Building trust, transparency and an inclusive and engaged workforce Developing our talent, leadership skills and capabilities Positively shaping the energy and climate change agenda with our external stakeholders in both regions Responsibility Our strategy and Company objectives are...

  • Page 4
    .../08: 11.8% -12% -38% + National Grid uses adjusted profit measures as key financial indicators to assess our business performance * †for continuing operations excludes the impact of exceptional items, remeasurements and stranded cost recoveries 02 National Grid plc Annual Review 2008/09

  • Page 5
    ...platinum' company in the Business in the Community corporate responsibility index. Lost time injury frequency rate ^ For more information visit: www.nationalgrid.com 0.25 2007/08: 0.30 ^ on a like-for-like basis, including KeySpan employees in both years National Grid plc Annual Review 2008/09...

  • Page 6
    ...time injury rate shows real improvement. Our focus this coming year remains on process safety improvements, behavioural change initiatives, and the health and well-being of our employees. 23.00p 8% 2007/08: 21.30p per annum from 2009/10 to 2011/12 Dividends per share Pence 35.64 Chairman's awards...

  • Page 7
    .... This is why we are actively seeking to develop their talent, leadership skills and capabilities, while exploring innovative ways to attract new employees as we continue to build a more inclusive and diverse workforce. Sir John Parker Chairman National Grid plc Annual Review 2008/09 05

  • Page 8
    ... introduced a line of sight concept that should connect each employee with the strategic vision and overall objectives of our Company, allowing everyone to see how what they do contributes to the success of their team, their line of business and the Company. 06 National Grid plc Annual Review 2008...

  • Page 9
    ... per business per financial year. In view of our internal goals, National Grid has taken on a leadership and advocacy role in this and other related areas by working with governments in the UK and US with a focus on Steve Holliday Chief Executive National Grid plc Annual Review 2008/09 07

  • Page 10
    ... and gas projects to upgrade and reinforce ageing infrastructure and adapt our networks to cope with changing sources of energy. Our fundamental priorities remain safety, reliability and ef ficiency. We have also created an enhanced line of sight from National Grid's objectives to Transmission...

  • Page 11
    ... terminal 01 Business Overview UK Electricity Transmission and Electricity Distribution & Generation Electricity distribution area Long Island Power Authority area Electricity transmission system Generation Canada Vermont Maine UK Gas Distribution Gas distribution area Canada Vermont Maine New...

  • Page 12
    ... transmission engineers have been testing mobile ï¬,ood defence systems in the UK that will soon be the blueprint for future deployment plans. The systems, each comprising two trailers, can transport ï¬,ood defence barriers to sites in crisis. 10 National Grid plc Annual Review 2008/09 $2.1bn

  • Page 13
    ... grid, is capable of combining renewables and smart metering to save energy and increase reliability. In the UK, we are exploring emerging biogas technologies where biodegradable waste streams could be turned into biogas and injected into the gas distribution system. National Grid plc Annual Review...

  • Page 14
    ...commitment from senior leadership and managers, a series of workshops have been conducted to reinvigorate the safety effort and capture crucial feedback from trade union safety representatives and front line managers to further embed the trusted approach. Efficiency at work - gas road repairs Road...

  • Page 15
    ... these long-term relationships with suppliers will enhance our ability to deliver complex programmes in a safe and environmentally responsible way. Our annual employee survey helps us learn employees' views on National Grid. We had a very positive response rate of 91.8% in 2009 and we are committed...

  • Page 16
    ...the UK provide scenario based training courses. The £5.5 million ($8.5 million) centres, along with an existing one at Eakring, aim to set industry leading safety and competence standards for apprentices, new recruits and existing employees in all lines of business. National Grid plc Annual Review...

  • Page 17
    ... of business in April 2009. We have been exploring ways that the UK can meet the European Union's renewable target. This target focuses on achieving 15% of energy demand from renewable sources by 2020. Transmission UK have developed the Gone Green scenario that anticipates a sizeable increase in the...

  • Page 18
    ...is a Vice Chairman of the US National Petroleum Council's Natural Gas Committee and is on the Board of the Business Council of New York, Keyera Energy Management Ltd, Sovereign Bancorp Inc., Advisory Board and JP Morgan Chase Inc., Metropolitan Advisory Board. Tom King, Executive Director Appointed...

  • Page 19
    ... Chairman of Samsonite Corporation and a Non-executive Director of PHS Group plc, Wolseley plc, Hamleys plc and Connell plc. Helen Mahy, Company Secretary & General Counsel Appointed October 2002, Age 48, E Helen Mahy was appointed Company Secretary following the merger of National Grid Group plc...

  • Page 20
    ... to KeySpan integration, cost reduction programmes, transformation initiatives and restructuring of our LNG storage facilities. Operating remeasurement losses of £443 million (2007/08: £232 million gains) related to changes in the value of commodity contracts in the US carried in the balance sheet...

  • Page 21
    ... 2010. This year, we are offering shareholders the option of a scrip dividend (subject to shareholder approval). Under this scheme, shareholders can opt to receive the final dividend in new ordinary shares rather than cash. Treasury policy Funding and treasury risk management for National Grid...

  • Page 22
    ... include KeySpan operations on a pro forma financial performance basis assuming the acquisition occurred at the beginning of the fiscal year 2008/09 result not currently available. Result will be published on our website www.nationalgrid.com in July 2009 20 National Grid plc Annual Review 2008...

  • Page 23
    ... and skills necessary to deliver our strategy â- â- Launched two new management development programmes Positively shaping the energy and climate change agenda Significant direct environmental incidents * (number) Target: zero 40 34 23 23 Steve Holliday member of the RPI-X@20 advisory panel...

  • Page 24
    ... share plans. The Remuneration Committee operates within terms of reference agreed by the Board, which are available on our website or on request from the Company. The Board has accepted all the recommendations made by the Remuneration Committee during the year. 22 National Grid plc Annual Review...

  • Page 25
    ... Annual Performance Plan award in National Grid shares ensures that Executive Directors share a significant level of personal risk with the Company's shareholders. In line with current US market practice, US-based Executive Directors' awards are pensionable. Long-term incentive - Performance Share...

  • Page 26
    ... for employees of National Grid's US companies. â- â- â- Employee Stock Purchase Plan (ESPP): US-based Executive Directors are eligible to participate in the ESPP. Eligible employees have the opportunity to purchase American Depository Shares (ADSs) on a monthly basis at a 10% discounted price, up...

  • Page 27
    ... The following Executive Directors exercised Share Match awards where the market price on the date of exercise was 663p: Steve Holliday 9,983 shares, he also received £9,739 in respect of a cash payment in lieu of dividends; Steve Lucas 14,778 shares and £17,761; Nick Winser 11,581 shares and £14...

  • Page 28
    ... Dividends per ordinary share Paid during the year - represents cash paid to shareholders during the year ended 31 March. Approved or proposed to be paid - represents the interim dividend paid and final dividend proposed in respect of the year ended 31 March. 26 National Grid plc Annual Review...

  • Page 29
    ...) (1,592) (1,450) (17,641) 05 Summary Financial Statements These summary consolidated financial statements were approved by the Board of Directors on 13 May 2009 and were signed on its behalf by: Sir John Parker Chairman Steve Lucas Finance Director National Grid plc Annual Review 2008/09 27

  • Page 30
    ...in the National Grid Annual Report and Accounts 2008/09, which are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and as adopted by the European Union (EU). There have been no significant changes in accounting...

  • Page 31
    ... also have the opportunity to meet and question Directors. The costs of the programme (including shareholder travel to and from the event) are paid for by National Grid. 06 Shareholder Information ADR price (US$) â- Ordinary share price (pence) National Grid plc Annual Review 2008/09 29

  • Page 32
    ... on system balancing, the timing of amendments in prices to shippers in the UK gas market, the performance of our pension schemes and the regulatory treatment of pension costs, and any adverse consequences arising from outages on or otherwise affecting energy networks, including gas pipelines, which...