time to power change

INTERIM RESULTS AND STRATEGIC UPDATE

17 November 2021

TIME TO POWER CHANGE

2

This presentation contains forward-looking statements about financial and operational matters. Because they relate to future events and are subject to future circumstances, these forward-looking statements are subject to risks, uncertainties and other factors. As a result, actual financial results, operational performance and other future developments could differ materially from those envisaged by the forward-looking statements.

SSE plc gives no express or implied warranty as to the impartiality, accuracy, completeness or correctness of the information, opinions or statements expressed herein. Neither SSE plc nor its affiliates assume liability of any kind for any damage or loss arising from any use of this presentation or its contents.

This presentation does not constitute an offer or invitation to underwrite, subscribe for, or otherwise acquire or dispose of any SSE shares or other securities and the information contained herein cannot be relied upon as a guide to future performance.

DISCLAIMER

AGENDA17 November 2021

3

08:30 Interim Results to 30 September 2021

09:00 Strategic Update – SSE’s Net Zero Acceleration Programme

10:00 Q&A

05

101520253035

Total recordable injuries

HY22 HY21

SAFETYInterim Results for six months to 30 September 2021

4

Safety• Six more injuries recorded versus same period last year• TRIR1 fell from 0.19 to 0.16 compared to the same period last year1

0

0.05

0.1

0.15

0.2

TRIR1

HY22 HY21

1 Total Recordable Injury Rate - total number of recordable injuries per 100,000 hours worked2 HY21 comparator restated to exclude impact of SSE Contracting & Rail and Neos Networks (formerly SSE Telecoms)

2 2

PROGRESS AND DELIVERY OVER LAST SIX MONTHSHighlights from SSE’s net zero-focused electricity infrastructure strategy

5

Reshaping the Group for net zero• Completion of Contracting & Rail and E&P disposals

• Agreed disposal of entire SGN stake

• 10GW (gross) development portfolio acquisition in Japan, with selected entry into other international auctions

Delivering on infrastructure projects• Construction continuing at pace on Seagreen,

Dogger Bank A&B and Viking• Keadby 2 first power & East Coast Cluster ‘Track 1’ • Work under way on Shetland HVDC link, progressing

additional Needs Case submissions and ED2 plan

Seagreen jackets being prepared for installation

SummaryDeliveryFive Year PlanStrategyNet Zero

AccelerationInterim Results

6

FINANCIAL PERFORMANCE TO 30 SEPTEMBER 2021

INCOME STATEMENT – CONTINUING OPERATIONS

7

Adjusted 1 HY22 HY21

Operating Profit - £m 376.8 328.9

Profit Before Tax - £m 174.2 133.9

EPS - pence 10.5 7.3

Reported 1 HY22 HY21

Operating Profit - £m 1,904.4 939.9

Profit Before Tax - £m 1,686.1 779.4

EPS – pence 103.6 62.9

1HY22 discontinued operations: • Gas Production assets operating profit (£77.7m adjusted / £(16.2)m reported)• Investment in SGN operating profit (£21.0m adjusted/ £89.4m reported)

Key commentary• HY21 included c.£115m adverse effect

from coronavirus, primarily impacting Distribution, Business Energy and Enterprise, with some residual impact continuing to be seen in HY22.

• HY22 saw significantly lower renewables output due to exceptionally dry and calm weather conditions across the UK and Ireland.

• Adjusted EPS slightly above expected range provided in Notification of Closed Period.

Interim Results for six months to 30 September 2021



Expect to report full year adjusted EPS at least in line with analysts’ consensus of 83p2

2Bloomberg, 15 November 2021

IMPACT FROM RECENT MARKET VOLATILITY

8

• Calm weather conditions across the UK over summer led to renewables output shortfall• However direct exposure to short term commodity price volatility managed through:

• Balanced mix of businesses;• Disciplined application of clearly defined hedging policies; and• £2m VAR trading limits for EPM maintained.


Business Unit Impact of recent market volatility on adjusted results

SSE Renewables Lower than expected output volumes across wind and hydro meant hedges had to be ‘bought back’ at higher prices.

SSE Thermal & Gas Storage

Power and gas volatility is positive for these businesses, depending upon plant availability and merit order.

Business Energy Contract customer sales are 100% hedged, with volume risk on tariff customers reduced through dynamic forecasting approach.

Airtricity Vertical integration of generation and customer businesses in Irish market limits commodity exposure.

SSE Group Significant increase in collateral requirements, however minimal cash collateral required.



INCOME STATEMENT – CORE BUSINESSES

9

Adjusted EBIT (£m) HY22 HY21SSEN Transmission 181.7 115.2SSEN Distribution 153.3 114.3Total regulated networks 335.0 229.5

Hydro (inc. pumped storage) 36.3 62.5Onshore wind (28.3) 27.7Offshore wind 17.4 51.4Total SSE Renewables 25.4 141.6

Total core businesses 360.4 371.1

• Higher allowed revenue and volumes in HY22

• HY21 impacted by coronavirus

Movement

• Earlier phasing of allowed revenue across T2, partially offset by increases in operating costs and depreciation

• £23m Seagreen disposal in HY21

• Reduced volumes due to exceptionally still and dry conditions for much of the first half of the year

• Hedge buy-backs at higher prices




INCOME STATEMENT – OTHER BUSINESSES

10

Adjusted EBIT (£m)1 HY22 HY21Total core businesses 360.4 371.1SSE Thermal 36.1 49.6Gas Storage 28.7 (17.9)Business Energy 2.4 (27.4)Airtricity (2.9) 16.6EPM 5.7 (1.5)Distributed Energy (7.3) (37.8)Total other businesses 62.7 (18.4)Corporate unallocated (46.3) (23.8)SSE Group 376.8 328.91HY22 discontinued operations: Investment in SGN and Gas Production assets

• Reduced impact from coronavirus• Contracting & Rail losses included in

period to disposal on 30 June 2021

• Higher volumes through reduced impact of coronavirus

• Increase non-commodity costs

• Merchant operation enabling capture of spread in volatile markets

• HY22 includes £(17)m net adjustment to historic accruals and estimates

• Strong BM performance and higher achieved prices

• HY21 included £20.4m non-recurring developer profits from Slough Multifuel

• Decrease in external income as transition service agreements unwind




FAIR VALUE REMEASUREMENTS

11


IFRS 9 remeasurements• EPM and Gas Storage, through exposure to unsettled

commodity contracts and physical gas inventory, are subject to unrealised mark-to-market remeasurements.

• At 30 September 2021, total positive net remeasurement under IFRS 9 of £1.4bn recognised on unsettled contracts / inventory.

These IFRS 9 remeasurements do not:• Reflect c.£(1.3)bn adverse remeasurement of ‘own

use’ hedging agreements which are excluded from IFRS 9 but largely offset the IFRS 9 remeasurement.

• Impact SSE’s Adjusted Performance Measures, given their distortive nature and scale.

EPM continues to operate under strict position limits and VAR controls



RECONCILING ADJUSTED AND REPORTED

12

Income Statement - £m HY22Adjusted PBT 174.2

Remeasurements - Operating derivatives 1,204.0

Remeasurements – Gas Inventories 235.2

Remeasurements - Financing derivatives (55.9)

SSE Thermal historic impairment reversals 181.6

Disposals and prior year true-ups (20.0)

Depreciation on historic fair value uplifts (10.3)

Interest on net pension liabilities/assets 2.3

Share of JV and associate tax (25.0)

Reported PBT 1,686.1

• Weaker Sterling against the Euro and Dollar

• Reversal of historic impairments on CCGT plant due to higher price curves


• Mark to market movements on predominantly gas derivatives

• Broadly offset by contracts designated as ‘own use’ and therefore not reported under IFRS9

• Includes £18m Contracting & Rail loss on disposal

• Unwinding of historic exceptional non-cash gains from wind farm partnerships

• Usual adjustment made for consistent treatment of JV/associate tax



CAPITAL AND INVESTMENT EXPENDITURE

13

Adjusted Capex (£m) HY22 Share %SSEN Transmission 291.0 28SSEN Distribution 171.3 16SSE Renewables 417.5 40SSE Thermal 93.3 10Other Business Units 69.7 6Total 1,042.8 100

Now expect capital and investment expenditure for FY22 to be in excess of £2bn previously guided

• Predominantly Slough Multifuel and Keadby 2

• £28m Skye subsea cable replacement• IT & resilience expenditure

• £249m Seagreen contribution• £111m Dogger Bank C devex

expected to be reimbursed at financial close

• £57m Viking onshore wind farm

• £57m reinforcements of East Coast• Shetland HVDC link




DISPOSAL OF NON-CORE ASSETS

14

Agreed Disposals, £m CompletionStatus

Headline Consideration

FY21 Recognised Gain / (Loss)

HY22 Recognised Gain / (Loss)

Total Recognised Gain / (Loss)

Walney offshore wind farm 350.0 188.7 - 188.7MapleCo meter assets 95.3 70.4 - 70.4Multifuel Energy 995.0 669.9 - 669.9Contracting & Rail 1 22.5 (51.2) (18.1) (69.3)Gas Production assets 2 120.0 - - TBCInvestment in SGN 3 Est. FY22 1,225.0 - - TBCTotal 2,807.8 877.8 (18.1) > 859.7

1 Completed on 30 June 2021 for upfront consideration of £17.5m (before adjustments for certain items), a £5m loan note repayable in 2026 and excludes up to £5m contingent upon achieving FY22 EBITDA performance.2 Completed on 14 October 2021 for upfront consideration of £25m, with a £95m (before adjustments for certain items) loan note repayable in 2024 and excludes up to £40m contingent upon future gas prices. The final loss on disposal is estimated at £24.1m and will be recognised in the second half of the financial year.3 Disposal agreed on 2 August 2021 for cash consideration of £1,225m. Disposal is conditional on certain regulatory approvals and is expected to complete by 31 March 2022. The final gain on disposal will be determined on completion of the transaction, but is expected to be in excess of £570m.

Impact from agreed disposals of approximately 7 pence dilution to adjusted EPS for FY22 forecast




SSE’S PENSION SCHEMES

15


Pensions Asset/(Liability) - £m HY22 FY21Scottish Hydro Electric Pensions Scheme (SHEPS) 501.7 543.1Southern Electric Pension Scheme (SEPS) (63.7) (186.1)Combined Asset/(Liability) 438.0 357.0

Increase in net pension surplus • £81m increase in combined net surplus in the six months to September 2021

• Reduction in SEPS deficit of £122.4m• Partially offset by reduction in SHEPS surplus of £41.4m• SHEPS is largely hedged to future volatility due to 2019/20 asset buy-in

Triennial valuation as at 31 March 2021 completed in the period• SHEPS contribution holiday agreed to continue



MAINTAINING A STRONG BALANCE SHEET

16

HY22 FY21 HY21

Adjusted net debt and hybrid capital - £m 9,611 8,899 10,622

Average debt maturity (excl. hybrid) – years 7.2 7.4 6.9

Average cost of debt at period end, inc. hybrid capital 3.89% 3.75% 3.58%

Adjusted net finance costs - £m 202.6 441.6 224.4

Net debt / EBITDA• Targeting a ratio of net det to EBITDA of around 4.5 times at 31 March 2022• Ratio of 4.6x at 31 March 2021


Credit Ratings (issued September 2020)• S&P - BBB+ with stable outlook• Moody’s - Baa1 with negative outlook



REMUNERATING SHAREHOLDERS

17

• Strong operational performance and strategic progress• HY22 Adjusted EPS of 10.5 pence – slightly above pre-close guidance• The Group reiterates its existing dividend commitment to March 2023

Continuing to target RPI increases in FY22 and

FY23

Interim dividend declared

25.5 pence1

Financial performance

slightly ahead of expectations


Scrip dividend capped at 25%

• Expect to recommend a full-year dividend of 81 pence plus RPI inflation• Dividend beyond FY23 rebased to 60p, with >5% growth per annum to FY26

1Assuming average RPI of 5% over the year to 31 March 2022



AGENDA17 November 2021

18

08:30 Interim Results to 30 September 2021

09:00 Strategic Update – SSE’s Net Zero Acceleration Programme

10:00 Q&A

FULLY-FUNDED ENHANCED£12.5BN INVESTMENT PLANFully-funded five year capex and investment plan focused on low-carbon infrastructure

SSE’S NET ZERO ACCELERATION PROGRAMMEA bold and comprehensive plan to 2026 creating the optimal pathway for accelerated growth

Delivers accelerated growth at attractive returns, maximising value for all stakeholders

ACCELERATING GROWTH AT ATTRACTIVE RETURNS TO 2026

Leading the energy transition and creating a platform for longer term growth to 2031 and beyond

PLATFORM FOR GROWTH TO 2031 AND BEYOND

19



Energy Portfolio Management

SSE Renewables SSE Thermal

RESHAPED AND READY TO SEIZE OPPORTUNITIES

20

Wind generation Low-carbon flexible generationHydro and storage

SSEN Transmission

SSEN Distribution

Smart, flexible distribution grid

Transmission links transporting growing renewable output

Distributed Energy

SSE represents a balanced mix of businesses uniquely positioned for the transition to net zero

SSE Business EnergySSE Airtricity



LEADING IN THE NET ZERO TRANSITIONLeading capabilities and investment pipeline position SSE as UK’s clean energy champion

21

The UK is leading the charge on net zero globally…

>£4bn/year sector investment in GB1

40 GW offshore wind target by 2030

+20 GW low-carbon flexibility needed by 2030

to ensure security of supply3

…and SSE focused on accelerating investment in the infrastructure needed

for the UK and internationally

Electricity Networks

Over 20% of planned GB investment

Enabling delivery of over 25% of UK’s offshore wind target

Coire Glaswould increase UK’s pumped storage capacity by 50%

Developing options for ‘1st of a kind’ CCUS & hydrogen projects

Offshore Wind

Hydro options

CCUS & Hydrogen

Distributed energy

Developing options for GW-scale battery pipeline

FULLY DECARBONISED

UK POWER SYSTEM BY

2035

UK TARGET

1Includes current draft RIIO-ED2 plans2Scottish Government draft Onshore Wind Policy Statement targets 8-12 GW of installed onshore wind capacity additions by 20303Smart Systems and Flexibility Plan 2021, needed to achieve offshore target

Targeting up to 20% of Scotland's onshore wind additions

Onshore Wind

16 – 20 GW onshore wind target by 20302



SSE PLC: NET ZERO ACCELERATION PROGRAMMEThe optimal pathway to maximise shareholder value and growth into the 2030s

1 All capex presented includes investments in development pipeline and is net of project finance development expenditure refunds2 After modelling assumption of 25% minority interest disposal of Transmission and Distribution during FY243 Underlying business, assumes 2% CPI inflation p.a. Distribution based on RIIO-ED2 Draft Business plan submission, subject to final submission and Ofgem determination4 Dividend rebased at 60p in 23/24, targeting at least 5% annual growth thereafter to March 2026

22

…AND THE PLATFORM FOR GROWTH TO 2031 & BEYOND

£11-13bn net Networks RAV2

1.5° celsiusScience-based carbon targets

>3GWNet low carbon

flexible thermal & distributed generation

>13GWNet installed Renewables capacity

0

5

10

20/21 25/26

£bn

SSE Ownership Minority Interest

+4GW net capacity

> 350p / share 4

rebased dividend across five years

5-7%Adjusted EPS CAGR

…DELIVERING ACCELERATED GROWTH AT ATTRACTIVE RETURNS INTO 2026…

~10%gross RAV CAGR3

4.5x net debt/EBITDA

Strong credit rating

>15GW pipeline

RENEWABLES ELECTRICITY NETWORKS

0

2

4

6

8

20/21 25/26

GW

Offshore Wind Onshore Wind Hydro

£7.4bn ~£9bn

~2x

Minority stake sale in Transmission and

Distribution2

Growth-enabling rebased dividend plan

FULLY-FUNDED ENHANCED INVESTMENT PLAN…

Networks Renewables Thermal Other

£12.5bn net capex1

~40% ~40%

~20%



THE OPTIMAL VALUE-CREATING PLANCreating options and opportunities for investment and growth

Board review concluded this five-year investment plan represents the optimal pathway to:1. Drive sustainable long-term value for all stakeholders,2. Deliver the scale of its capital investment and growth opportunities; and 3. Provide the optimal sources of funding to underpin this accelerated growth.

23

Sustainable long-term value

• Clear focus on delivering long-term solutions for net zero at critical time

• ESG-aligned business mix • Optimises risk-adjusted returns across

index-linked and market-based earnings • Growth enabling dividend, maximising

long-term shareholder value• Responsible national clean energy

champion

Deliver investment opportunity

• Drives accelerated growth in networks, renewables and flexible generation

• Strong growth options across net zero electricity

• Delivers integrated solutions (storage, hydrogen, offshore transmission)

• Builds on existing shared capabilities• Realises investment opportunity, whilst

retaining portfolio options for the future

Optimise sources of funding

• Fully-funded plan to accelerate growth • Secures strong investment grade credit

rating • Business mix creates financial stability• Group balance sheet enables delivery of

large offshore wind projects• Minority networks sale to achieve

premium value and fund growth

Investment plan supports renewed emission targets aligned with a science-based 1.5° pathway



24

Strategic Update – SSE’s Net Zero Acceleration Programme

SSE’S COMMITMENT TO NET ZERO

A POWERFUL PURPOSE, VISION AND STRATEGYFocused on creating value for all stakeholders in the transition to net zero

25

OUR PURPOSETo provide energy needed today while building a better world of energy for tomorrow.

OUR VISION

To be a leading energy company in a net zeroworld.

OUR STRATEGY

To create value for shareholders and society in a sustainable way by developing, building, operating and investing in the infrastructure and businesses needed in the transition to net zero.



>2 x

ELECTRICITY AT THE CORE OF THE ENERGY SYSTEMNet zero by 2050 requires rapid deployment of innovative clean energy technologies

26

Projected global electricity generation to more than doubleby 2050, as electricity moves to core of energy system

Renewables mix to increase threefold, putting more stress on low-carbon flexible generation to balance system

1 IRENA Transforming Energy Scenario (2019q) & REmap (https://www.irena.org/Statistics/View-Data-by-Topic/Energy-Transition/REmap-Energy-Generation-and-Capacity)2 UK Government Energy White Paper December 2020

-

15,000

30,000

45,000

60,000

2017 2030 2040 2050

TWh

Non-renewables Hydro Onshore Wind Offshore Wind Solar PV Other renewables

Global electricity generation by technology to 20501

85% Renewables

25% Renewables

Electricity networks investment critical to:• support growth in decarbonised energy demand

• connect renewables and distributed energy; and

• facilitate future electrification of transport and heat.

UK electricity demand under net zero scenarios2

0

100

200

300

400

500

600

700

2020 Low High Low High

TWh

Domestic Non-Domestic Electric Vehicles Heating2030 2050



https://www.irena.org/Statistics/View-Data-by-Topic/Energy-Transition/REmap-Energy-Generation-and-Capacity

LOWER CARBON, HIGHER FLEXIBILITYRenewables dominated electricity systems needs network investment and low-carbon flexibility

27

0

10

20

30

40

50

60

FY07 FY11 FY15 FY19 FY23 FY27 FY31

Gen

erat

ion

outp

ut (T

Wh)

Hydro Onshore Wind Offshore Wind Hydrogen-fired Solar Gas-fired (abated) Gas-fired (unabated) Coal-fired

Illustrative future output

Note: Gas-fired output includes a small minority of oil-fired generation, which represented c.2% of Thermal output during FY21

SSE has the options, assets and ability to deliver the renewable output, the networkcapacity, and the flexible decarbonised electricity required for the future

SSE actual and forecast generation output (2007–31)

> 90% renewables

and low-carbon

flexible generation



0

5

10

15

20

25

30

FY06 FY18 FY21 FY30(old target)

FY30(new target)

Mt C

O2e

SSE’s absolute scope 1 and 2 GHG emissions

1.5°C-ALIGNED SCIENCE-BASED TARGETSAcceleration of 2030 carbon targets to align to the SBTi power sector 1.5°C-aligned targets

28

1.5° CELSIUS

THRESHOLD

* From FY18 baseline

0

100

200

300

400

500

600

700

FY06 FY18 FY21 FY30(old target)

FY30(new target)

gCO

2e/k

Wh

SSE’s Scope 1 GHG Intensity

1.5° CELSIUS

THRESHOLD

~2x acceleration

from previous

~80% reduction*>70% reduction*

~2x acceleration

from previous



OUR 2031 TARGETS

Wind Operating 3.8GW (gross) Constructing >5GW (gross) with

world’s largest offshore wind farm

~10GW pipeline with plan for >15GW by FY26 Up to 4.1GW Berwick Bank super project Up to 1.5GW pumped storage option Carefully selected international partnerships and

platformsHydro 1.5GW operational capacity Optimising 84 assets

Transmission Pioneering Caithness-Moray HVDC Shetland subsea HVDC under way

Progressing >£1bn Initial Needs Cases for T2 Long-term growth connecting 14GW+ renewables

Distribution Leading innovation and flexibility Delivering Distribution System

Operation

Proposed a 35% increase in investment v ED1 Facilitating electrification for net zero

Low-carbon thermal

Constructing Keadby 2 (840MW) most efficient CCGT in Europe

‘First-of-a-kind’ CCS development clusters Hydrogen generation, storage and production

Distributed energy Developing 350MW of battery sites

Developing GW-scale battery and solar pipeline EV charging solutions

MARKET LEADING CAPABILITIES AND PIPELINE

29

PIPELINE FOR TOMORROWDELIVERING TODAY

SSE is delivering the energy needed today, whilst delivering growth into net zero

1 Assumes 25% minority interest disposal of Transmission and Distribution in April 20232 Underlying business, assuming consistent ownership percentage over five-year plan

>13GWRenewables installed

(net)

More than trebling current capacity

£11-13bn Electricity networks

RAV (net)1

~8-9% CAGR (gross)2

>3GWNew low-carbon

flexible generation

Pathway to 1.5ºC



> 350p / share 4




SSE PLC: NET ZERO ACCELERATION PROGRAMMEThe optimal pathway to maximise shareholder value and growth

30

£11-13bn net Networks RAV2


>3GWNet low carbon

flexible thermal & distributed generation

>13GWNet installed Renewables capacity

0

5

10

20/21 25/26

£bn


+4GW net capacity


~10%gross RAV CAGR3

>15GW pipeline


0

2

4

6

8

20/21 25/26

GW


£7.4bn ~£9bn

~2x


Distribution2



£12.5bn net capex1

~40% ~40%

~20%








A BOLD FIVE-YEAR INVESTMENT PLAN

31

0

2

4

6

8

10

12

20/21 25/26

£bn


5 - 7% p.a.Adjusted EPS CAGR

~4.5xnet debt to

EBITDA ratio

1.5 degreealigned carbonemissions plan

Group Targets

0

2

4

6

8

10

12

14

Previous 5yr Plan 2026 Growth Plan

£bn

0

2

4

6

8

20/21 25/26

GW


A BOLD FIVE-YEAR INVESTMENT PLAN

32

~10% Electricity networks gross RAV CAGR2

£12.5bn net capex investment1 +4GW net installed renewable capacity

Summary of plan to 2026

+65%

Dividend certainty to 2026

~2x

1 Assumes 25% minority interest disposal of Transmission and Distribution in April 20232 Underlying business, assuming consistent ownership percentage over five-year plan3 All capex presented is net of project finance development expenditure refunds4 Dividend rebased at 60p in 23/24, targeting at least 5% annual growth thereafter to March 2026

>£3.50Total dividend per share across five-year plan4

£7.5bn ~£9bn

Sustainable development pipeline

>15GW



Transmission

Distribution Renewables

Transmission

Distribution

Renewables

Thermal

Other

ACCELERATING INVESTMENT IN NET ZERO

33

£12.5bn Net Capex

Optimising capital allocation between net zero-focused businesses

~40% ~40%

~20%1 After modelling assumption of 25% minority interest disposal of Transmission and Distribution during FY242 All capex presented is net of project finance development expenditure refunds

Previous five-year plan to 2025 New five-year plan to 2026

+65% total spendrepresenting a £1bn p.a. increase

>2.5x renewablescapex versus previous plan

An optimum mixof regulated and unregulated

£7.5bn Net Capex

~10%



HIGH PROPORTION OF PLAN IS COMMITTED

34

Majority of five-year planned capital investment is committed, with visibility over uncommitted

+1% cumulative increase in inflation over the five-year plan would impact capex by <£200m

0

1

2

3

4

5

6

7

8

Renewables Transmission Distribution Thermal Other Total

Committed vs uncommitted capex by division to FY26

Committed Uncommitted

~60% COMMITTED

~£7.5bn of investment plan is already committed, through previous investment plan

~40% UNCOMMITTED

~£5bn of incremental capex is expected to be committed through

the five-year investment plan

£bn



INVESTMENT CRITERIA AND PARTNERSHIPS

35

STRATEGIC FIT

FINANCIALLY ATTRACTIVE

SUSTAINABLE INVESTOR

COMFORT AND EXECUTION

RISK

SSE INVESTMENT CRITERIA ANDPARTNERSHIP FRAMEWORK

Returns

• Simple framework, applied to support decision making process for capital investments, divestments and partnerships

• Expands investment and partnership appraisal beyond pure hurdle rate metrics

• Ensures capital investment decisions are consistent with strategy, and where SSE can clearly create most value

• Partnering spreads risk and financial exposure on large-scale projects/businesses

• Partnering also avoids non-earning net debt during project development, and higher gearing, through project financing

Disciplined capital investment criteria with efficient use of partnerships for risk management

FinancingRisk

ExecutionRisk

Earnings

Net zeroStakeholders

Culture

StrategyCore skills

Synergies

All investments are assessed for consistency with, and profitability in, a net zero scenario



FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31

Electricity networks RAV growth (stylised)

PLAN TARGET

ASSET DISPOSALS – MINORITY NETWORKS SALEAsset recycling to fund value creation for the Group

36

Minority disposal would create greater long-term value for the Group• Unlocks premium value in regulated

networks businesses• Provides additional capacity to diversify

growth by taking balanced risk across number of significant capital projects

• Strong long-term growth characteristics make minority stake particularly attractive to alternative investors

• Retaining majority stake ensures control whilst retaining balance sheet stability

• Maintains exposure to high quality core asset businesses

1 Distribution based on RIIO-ED2 Draft Business plan submission, subject to final submission and Ofgem determination. Including ~£200m transfer from Transmission. After modelling assumption of 25% minority interest disposal of Transmission and Distribution during FY24.

Forecast networks RAV growth from 2021 to 2031 in excess of 50%, after 25% divestment



DIVIDEND CERTAINTY TO 2026

37

A rebased dividend to enable significant growth across the Group

FY22 and FY23 RPI increases each year, as per previous dividend plan

FY24 Dividend rebase to 60p per share

FY25 and FY26 Growth of at least 5% per annum from new base

Total dividend of at least £3.50 over the five-year plan

Scrip dividend capped at 25%

Post FY26, aiming for mid single digit dividend growth per annum



MAINTAINING A STRONG CREDIT RATINGBusiness mix, funding plans and dividend aligned with investment grade credit rating

38

STRONG INVESTMENT GRADE RATING

CREDIT TARGETS

Credit ratios comfortably above those required for an investment grade credit rating

S&P BBB+FFO / debt at or above

18% threshold

Investment plan underpinned by strong investment grade credit rating

MOODY’S Baa1RCF / debt at or above “low teens” threshold

• Aligned with 4.5x target net debt to EBITDA ratio1

• Supported by rebased dividend to FY26

• Moody’s rating remains at Baa1, updated from negative to stable outlook 17 November

1 Net debt to EBITDA ratio reflects SSE’s set principles and methodology, including appropriate adjustments for assumed Minority Interests



TARGETED RETURNS IN HIGH QUALITY ASSETS

39

Common capabilities across the Group drive favourable project returns

At least 10%Equity returns on Joint Venture projects, excluding developer profits

100-400 bpsSpread to WACC on unlevered projects2

300-500 bpsSpread to WACC on unlevered projects2, given investment in new technologies

7-9% Return on equity (RoE)1

Note: All returns indicated are post tax nominal returns1 Assumes CPI inflation of 2% p.a. and actual gearing ratio of 65%2 Spreads to WACC reflect balance of merchant risk and construction risk specific to each project

All investments are assessed for consistency with, and profitability in, a net zero scenario



VISIBILITY OF GROWTH IN OPERATIONAL EARNINGS

40

Earnings growth supports organic investment and progressive shareholder returns

• Five-year plan optimises capital allocation between businesses, balancing risk and financial exposure between large-scale projects and different technologies

1 After modelling assumption of 25% minority interest disposal of Transmission and Distribution during FY242 Includes developer profits

FY21 FY26

Target Group adjusted EPS(after Minority Interest)1

Forecast average adjusted EBITDA by business to FY261

5 – 7% CAGR

~60% of EBITDA is underpinned by index-linked revenue streams

Transmission

Distribution

Renewables

Thermal

~35% ~50%2

~15%



0

2

4

6

8

10

12

14

16

18

20

Net Capex Dividends Interest & Tax Cash requirement Operationalcashflow (inc.

developer profits)

Asset disposals Net Debt

£bn

Transmission Capex Distribution Capex Renewables Capex Other Capex

• ~ 90% of capex invested into low-carbon infrastructure in net zero-aligned businesses

FULLY-FUNDED PLAN FOR ACCELERATED GROWTH

41

Sources and uses of cash for 2026 investment plan provide optimal pathway for SSE

c.60%

c.10%

• Completion of SGN sale• Minority Transmission and

Distribution stake• Potential for residual non-

core asset disposals

ASSET DISPOSALS

• Normal refinancing with minimal incremental debt issuance

• In line with target 4.5x net debt to EBITDA ratio5

FULLY-FUNDED PLAN

NET ZERO FOCUS

£12.5bn1, 2

~ £3bn3

< £3bn ~ £18bn

~ 65%

~ 25% ~ 10%4

1 After modelling assumption of 25% minority interest disposal of Transmission and Distribution during FY242 Capex is presented net of project finance development expenditure refunds which primarily occur for Renewables projects3 Including scrip dividend assumption4 Net debt includes assumed Minority Interest debt relating to Transmission and Distribution5 Net debt to EBITDA ratio reflects SSE’s set principles and methodology, including appropriate adjustments for assumed Minority Interests



42


DELIVERING ACCELERATED GROWTH

2

Pipeline under construction / due FID3

50%

Pipeline tobe constructed

30%

Future pipelinedevelopment

15%

Maintenance5%

~4GW

~8GW~1.4GW

SSE RENEWABLES – ACCELERATING INVESTMENTFive-year investment plan to 2026

43

Updated £5bn capex plan1 Earnings profileCapacity additions2

2.6GW

FY21 FY26

Developer profits Operational earnings

Adjusted EBITDA

+£3bn on previous

plan

1 All capex presented is net of project finance development expenditure refunds2 Capacity under construction or due FID reflect ownership as at FY21 and includes Seagreen 1 (527MW), Dogger Bank A & B (480MW each), Dogger Bank C (600MW) and Viking (443MW). FY26 Target of ~8GW would be unaffected by expected sale of a c.120MW stake in Dogger Bank C completing during FY22.

11-12% CAGR



SSE RENEWABLES – ACCELERATING GROWTHLeading capacity and output growth across the next decade

44

Maintaining > 15 GW pipeline

which delivers> 1GW net

additions p.a.

Targetingfivefold output to50TWh

Trebling renewables capacity to> 13 GW

SeagreenDogger Bank ASeagreen 1A

Viking

Dogger Bank BYellow River

Dogger Bank CStrathy South

Cloiche

Arklow Bank

Berwick BankCoire Glas

North Falls

4

> 13

4

> 13

0

10

20

30

40

50

0

2

4

6

8

10

12

14

FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31

Out

put (

TWh)

Cap

acity

(GW

)

Additions from FY21 Secured Pipeline Additions from Future Prospects Forecast Output

FY21~4 GW capacity~11 TWH output

FY31>13 GW capacity~50 TWH output

Timing for additions from FY21 Secured Pipeline (> 100 MW)

~4GW

>13GW

~8GW

* Additions from Future Prospects total ~2.7GW for the period to 2031. Existing future prospects totalling >10GW are detailed on slide 46, but exclude any in-flight or future auction processes such as ScotWind, Thor or NY Bight.



SSE RENEWABLES – GROWING THE PIPELINEA superior pipeline with focus on opportunities to enhance growth

45

• 2.6GW is currently in construction or due FID• Remaining 1.4GW will come from combination of:

• Existing secured pipeline (2.4GW consented & ~4.9GW requiring consent at FY21); and

• Future prospects secured and constructed

• > 10 GW future prospects in development (slide 46)

• Domestically, extension of existing sites combined with 10GW ScotWind auction will add to pipeline

• Internationally, East Asia, North West Europe and United States are active options for growth (slide 48)

0

5

10

15

Offshore Onshore Pumped Storage FY21 SecuredPipeline

Constructedby FY26

To BeSecured Additions

FY26 SecuredPipeline

GW

In Construction Consented Requiring Consent

40% already in FY21

~107.1 1.2

1.5

GROW AND SUSTAIN PIPELINE AT > 15GW by FY26~ 10GW SECURED PIPELINE AT FY21

60%additions to be secured

~4

> 9 > 15

~ 4GW CONSTRUCTED BY FY26 > 9GW TO BE SECURED ADDITIONS TO FY26 PIPELINE

~4GW > 9GW

Note – Secured pipeline comprises development projects where land leases or seabed rights are held by SSE. Contained within the secured pipeline is a mix of under construction, consented and requiring consent projects as detailed on slide 46.



MW

Other GB ~250

Other ROI ~250

Other NI ~50

Total ~550

MW

Viking 443

Gordonbush Ext.2 38

Lenalea 15

Total 496

MW

Yellow River 105

Tangy 57

Total 162

MW

Strathy South3 208

Cloiche 155

Other ~200

Total ~563

MW MW

Coire Glas 1,500

MW MW

Other GB 75

MW

GB 1,025

ROI 196

Total ~1,221

MW

Pumped storage 1,500

MW

Braymore Point 800

Celtic Sea Array 800

Japan 8,000

Future auctions TBC

Total 9,600

MW

Dogger Bank A 480

Dogger Bank B 480

Dogger Bank C4 600

Seagreen 1 527

Total 2,087

MW

Arklow Bank 23 520

Seagreen 1A 176

Total 696

MW

Berwick Bank 4,100

North Falls 252

Total 4,352

MW

GB 6,615

ROI 520

Total 7,135

SSE RENEWABLES –PIPELINE AND PROSPECTSHigh quality pipeline options, with opportunities to sustainably grow into the next decade

46

ON

SHO

RE

1.9G

W o

pera

tiona

lO

FFSH

OR

E0.

5GW

ope

ratio

nal

FUTURE PROSPECTS1DUE FID OR IN CONSTRUCTION CONSENTED REQUIRING CONSENT

TOTAL: >10GWTOTAL: 2.6GW TOTAL: 2.4GW TOTAL: ~4.9GW

Note – Table above reflects ownership and development status as at FY21 as well as the recently announced acquisition of a Japanese development platform1Future prospects comprise named development areas where some form of development activity is under way and therefore excludes any future or in-flight auction processes such as ScotWind, Thor or NY Bight. Future prospect additions on slide 44 total ~2.7GW for the period to 2031. 2Entered commercial operation in Aug 21 3Partially consented 4600MW reflects 50% equity stake. A 10% equity stake sale is expected to complete by Q1 2022, reducing share to 480MW.

Hyd

ro1.

5GW

ope

ratio

nal

SECURED PIPELINE

TOTAL: ~10GW



SSE RENEWABLES – OFFSHORE DEVELOPMENTOffshore wind options under development and deliverable within the next 10 years

47

Project 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031Seagreen 1A360MW

Berwick Bank *Up to 4,100MW

North FallsUp to 504MW

Arklow Bank 2520MW

Braymore800MW

Celtic Seas800MW

ScotWind (CES)

Thor 800-1,000MW

Japan 1400MW

Japan 2400MW

ConstructionDevelopment

Development Construction





DevelopmentBid

Development ConstructionBid

SEAB

ED S

ECU

RED

–SE

EKIN

G C

ON

SEN

TFU

TUR

E PR

OSP

ECTS

Target commercial operations date

Target first energy

Key

Construction phase

Development phaseTarget consent achieved

Bid phase

Target FID

Construction



Notes – Capacities stated above reflect SSE’s current ownership percentage. Early stage auctions are excluded from the chart* Following the merger of Berwick Bank and Marr Bank offshore wind farms into a single wind farm - Berwick Bank Wind Farm – in September 2021, the project is in the process of being redesigned ahead of an expected planning application submission in Spring 2022. Timeline indicated above is therefore subject to change.



SSE RENEWABLES – INTERNATIONAL EXPANSIONCarefully selected international markets are providing attractive opportunities to grow pipeline

48

United StatesOffshore Wind• Incorporation of North American subsidiary• Pre-qualified for NY Bight Auction• Auction anticipated between Nov 21 – Feb 22

East AsiaOffshore Wind• Joint Ownership Company formed with Pacifico Energy• 10GW (gross) acquisition of early stage development options• Expected to start entering bid rounds before or in mid-2020s

Strong growth in regions SSER is exploring

North West EuropeOffshore Wind• Auction entry in North-West Europe (e.g. Denmark)• Acciona partnership to enter new markets in Poland and Iberia

Onshore Wind• Entry options via local development platforms

0

25

50

75

100

125

2021 2026 2031

Cum

ulat

ive

inst

alle

d ca

paci

ty /

GW

North West Europe(excl. UK, RoI)US

East Asia(excl. China)

0

100

200

300

400

500

2021 2026 2031

>7x>1.5x

Source: Onshore wind – BNEF NEO 2020; Offshore wind – BNEF 1H 2021 Offshore Wind Market Outlook



Market Policy Outlook

• Structure: Energy sector liberalisation completed in 2016 and unbundling concluded in 2020, plans to abolish regulated electricity rates

• Policy goals: Late 2020 Japan legislated 2050 net zero target, now awaiting publication of route map

• Ambitious decarbonisation path required: In 2020, 76% of supply came from fossil-fuels with >17GW of nuclear being decommissioned

• Energy security: Japan imports c90% of energy sources. Utility-scale domestic production of offshore wind and ‘green H2’ strategic policy aim

Offshore Wind Outlook• Revenue support: First offshore wind auction closed mid-2021, with Feed-in-

Tariff capped at ¥29k/MWh (c£190/MWh), annual auctions expected

50 Hz

60 Hz

SSE RENEWABLES: INVESTMENT INTO JAPANAttractive early development opportunities as Japan reduces nuclear reliance

49

0

10

20

30

40

50

2020 2030 2040

GW

Government targets for offshore wind installed capacity

10

30 - 45

1GW p.a.

3.5GW p.a.

Offshore Wind Development Platform

• 10 GW gross (8GW net) portfolio of early stage development opportunities, comprising over 15 sites focused in the Tokyo, Tohoku, Kyushu and West Japan regions

• Mixture of fixed and floating wind sites• Local development team of c20 employees, which will be

complimented by SSE employees• Most advanced sites aiming to enter bid rounds in the mid-2020s

Kyushu

West Japan

Tokyo

Tohoku

Market policy outlook

Offshore wind outlook

Acquired offshore wind development platform



SSE RENEWABLES – HYDRO OPTIONSCurrent portfolio plus pumped storage development at Coire Glas

50

Nature’s battery• UK Government highlighted importance of long duration storage in

Smart Systems and Flexibility plan• Coire Glas could be UK’s largest pumped storage project

• Consented 1.5GW site provides 30GWh of storage potential

• £1.2-£1.5bn estimated capital expenditure

• Critical flexibility provides grid stability, reduces wind curtailment and displaces fossil fuel-fired plant – requires revenue certainty but no subsidy

• Operational by the end of the decade, assuming clarity on government policy

Loch Ness, site of Foyers Hydro Scheme

Decades of clean, flexible power• 84 hydro stations with 1,459MW capacity, including 300MW of pumped

storage and 750MW of flexible hydro.

• Historically strong performance in Balancing Market

• ~£50m to be invested in repowering Tummel Bridge station, extending operational life by over 40 years and increasing capacity from 34MW to 40MW

Loch Lochy - lower reservoir for Coire Glas site



• “First-of-a-kind” CCS-CCGTs at Keadby (East Coast Cluster) and Peterhead (Acorn project)

• Hydrogen blending potential at Keadby 2• Net capex investment to FY26 of ~£600m

• “First-of-a-kind” Hydrogen-CCGT at Keadby• Potential for hydrogen storage at Aldborough• Development of further CCS and hydrogen

projects across UK and Ireland

SSE THERMAL – CRITICAL FLEXIBILITY AND H2 OPTIONSLeading in low-carbon thermal with attractive growth optionality

51

CCUS

H2

Peterhead CCS

KeadbyCCS / Hydrogen

Atwick & Aldborough Gas Storage

CCS projects

Hydrogen projects

Potential development sites

• Critical flexibility gives security of supply and stability of price in wind-dominated system

• Improves group earnings stability via capacity contracts and natural hedge against lower wind output / higher prices

• Gas Storage holds ~40% of the UK’s conventional underground gas capacity



CUSTOMER BUSINESSES – PROVIDING GREEN POWEROffering net zero-aligned solutions and a route to market for SSE Renewables

52

SSE Business EnergyDistributed Energy SSE Airtricity

• Developing >1GW combined battery / solar pipeline

• 350MW currently secured, requiring consent

• Deploy and own EV hub, fleet and bus charging solutions

• Capitalise on district heat networks and electricity networks market growth

• Business supply and solutions (e.g. EV installs)

• ‘Shop-front’ for low-carbon solutions and Corporate PPAs

• Provides Group hedge• Strong positive cashflows

• Route to market for renewables in integrated Irish market

• B2C and B2B supply and solutions• 100% traceable green supply products,

provides Group hedge• Strong positive cashflows



0

2

4

6

8

10

12

14

16

18

20

FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31Transmission Distribution Potential upside

SSE NETWORKS – TRANSMISSION AND DISTRIBUTIONRegulated electricity networks are key enablers of net zero

53

8-9% gross CAGR

£15-18bn RAV by 2031

(gross)

Index-linked earnings growth

>£5bn investment1

required during five years to 2026 (net)

1 Assumes 25% minority interest disposal of Transmission and Distribution during FY24. Distribution based on RIIO-ED2 Draft Business plan submission, subject to final submission and Ofgem determination. Including ~£200m transfer from Transmission. Transmission includes an assumed c£1bn of totex allowed under uncertainty mechanisms. Inflation assumption 3% RPI/2% CPIH.



FY21 FY26SSE Ownership Minority Interest

SSEN TRANSMISSION – A NETWORK FOR NET ZEROExceptional RAV growth expected through RIIO-T2 to enable net zero

54

5-year Transmission capex to FY26

Net capex of >£3bn1

Includes ~£1bn (net) investment in:

• Skye reinforcement project

• Eastern HVDC project

• North Argyll project

Prev. plan to FY25 New plan to FY26

Avg. Transmission capex p.a.

£m

1 Assumes 25% minority interest disposal of Transmission during FY24.2 Source: National Grid Future Energy Scenarios, Leading the Way, FES 20213 Including ~£200m transfer to Distribution. Subject to generator commitment, planning and Ofgem determination

Key projects to FY26 Exceptional RAV growth to FY26

Expected CAGR (gross) of c.12%• Potential for 14GW+ capacity connected

by 20262

• Gross RAV expected to reach £6bn by FY263

• Represents 30% increase in net RAV3

SSEN Transmission RAV Forecast3

1

c.12%gross CAGR>10%



Expected CAGR (gross) of 9-11%• Gross RAV expected to reach £8-10bn

by 20312

• Could see a path for gross RAV to reach £12bn by 2031, in the event of acceleration of reinforcement expenditure2, 3

SSEN TRANSMISSION – RIIO-T3 AND BEYONDHighly attractive long-term growth trajectory in line with renewables growth

55

1 Source: National Grid Future Energy Scenarios2 Including ~£200m transfer to Distribution. Subject to generator commitment, planning, levels of load investment required in the period, plus Ofgem determination 3 Subject to acceleration of ScotWind and onshore buildout

Forecast RAV growth to FY31

FY21 FY26 FY31SSE Ownership Minority Interest

SSEN Transmission RAV Forecast

9 - 11% gross CAGR

• Installed renewable capacity forecast to increase materially out to 2050 • ScotWind expected to add 10GW of offshore wind• Significant further onshore wind required to meet net zero targets

• Potential for second HVDC link and possible island links

Expected 2050 generation increased across all scenarios in the past 12 months

05

101520253035404550

2020 2025 2030 2035 2040 2045 2050

GW

Forecast Total Generation Connected (SSEN Transmission Area)1

Leading The Way FES21 Consumer Transformation FES21 System Transformation FES21 Steady Progression FES21



SSEN DISTRIBUTION – ENABLING ELECTRIFICATION Significant RAV growth from net zero investment connecting and electrifying the UK

56

1 After modelling assumption of 25% minority interest disposal of Transmission and Distribution during FY242 Based on RIIO-ED2 Draft Business plan submission, subject to final submission and Ofgem determination. Including ~£200m transfer from Transmission

Net capex planned of c.£2bn1,2:• Network resilience investment

• Service delivery investment

• Net zero investment

Previous plan to FY25 New plan to FY26*

Avg. Distribution capex p.a.

>15%

£m

5-year Distribution capex to FY26 Significant RAV growth to FY262

Expected CAGR (gross) of c.8%• Significant network investment driving RAV

growth

• Gross RAV expected to reach £5.5bn by 20262

FY21 FY26SSE Ownership Minority Interest

Distribution RAV Forecast2

c.8%gross CAGR

Diverse and unique geographies



7 - 8%gross CAGR

-5

5

15

25

35

45

55

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

2020 2025 2030 2035Heat pump capacity (GW) EV charging (GW) Consumer Transformation FES20Steady Progression FES20 System Transformation FES20

SSEN DISTRIBUTION – SUSTAINABLE GROWTHDistribution will be a key enabler of the accelerating electrification of heat and transport

57

Forecast load spend vs EV and heat pump capacity (SSEN Distribution area)

Forecast RAV growth to FY311

Expected CAGR (gross) of 7 - 8%• Expected to reach £7-8bn gross by 2031,

subject to RIIO-ED2 regulatory determination and required future load spend1

FY21 FY26 FY31SSE Ownership Minority Interest

SSEN Distribution RAV forecast

• Connected EV charging and heat pump capacity forecast to increase materially into the 2030s

• Potential for a five- to ten-fold increase in annual load spend between now and 2038, depending on the scenario

1 Based on RIIO-ED2 Draft Business plan submission, subject to final submission and Ofgem determination. Including ~£200m transfer from Transmission.2Consumer Transformation FES 20203Includes extrapolated cost estimates beyond 2028

Load

exp

endi

ture

(Lin

e, £

bn)

Cap

acity

(Bar

, GW

)

2 2

3

3

3



58


SUMMARY

COMMITMENT TO SUSTAINABLE LONG-TERM GROWTH Investment plan delivers optimal platform for growth to 2031

59

• Fully-funded, £12.5bn investment plan to FY26 for accelerated growth to net zero• Optimised capex maximises Total Shareholder Returns and sustains credit rating• Dividend >350p / share across five years, with aim for mid single digit growth after

FY21 FY26 FY31 -

10

20

30

40

50

FY21 FY26 FY31

TWh

Targeting fivefold renewable output to

50TWh p.a.

8 – 9% gross RAV CAGR, to reach

£11-13bn net RAV

Maintain > 15GW pipeline, delivering

>1GW net additions p.a.

0

3

6

9

12

15

18

FY21 Renewable Low-carbonflexible

FY31

GW

inst

alle

d

Meet 1.5° celsiusscience-based carbon targets

£11 -13 bn (net)



> 350p / share 4




SSE PLC: NET ZERO ACCELERATION PROGRAMMEThe optimal pathway to maximise shareholder value and growth into the 2030s

60

£11-13bn net networks RAV2


> 3 GWNet low-carbon

flexible thermal and distributed generation

> 13 GWNet installed renewables capacity

0

5

10

20/21 25/26

£bn


+4GW net capacity


~10%gross RAV CAGR3

> 15GW pipeline


0

2

4

6

8

20/21 25/26

GW


£7.4bn ~£9bn

~2x


Distribution2



£12.5bn net capex1

~40% ~40%

~20%







APPENDIX

SSE’S ESG CREDENTIALSAiming for leading ESG performance

62

ESG Rating: AAAIn the top 8% of 139 global

utilities

Score: A-Scored as ‘Leadership’ for

climate change

Included in the index series since 2001

Included in the index since 2018

In the top decile for disclosure in the WDI

Score: Top decile

Scored as ‘Advanced’ ESG Score: 63/100

69th percentile ranking within the Electric Utilities industry

56/100

*Copyright ©2021 Sustainalytics. All rights reserved. This ESG ratings and indices performance table contains information developed by Sustainalytics (sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at sustainalytics.com/legal-disclaimers.

In the 21st percentile in Electric Utilities subindustry

ESG Risk Rating*: 30.1 IncludedIncluded

Oct 2020 Sep 2021 Feb 2021 Nov 2020

Jun 2021Jan 2021 Mar 2021 Apr 2021

Previous plan announced in May 2020 is ahead of schedule• Cash proceeds from disposal of non-core

assets expected to exceed £2.7bn by end of financial year

• c.95% of £7.5bn capex to FY2025 committed, with c.80% investment in Renewables and Networks

• Net debt to EBITDA of 4.6x at March 2021, within lower end of a 4.5 to 5 times range from 2021-2025.

• Credit Ratings of BBB+ stable outlook (S&P) and Baa1 negative outlook (Moody’s), comfortably above investment grade

• FY20/21 dividend of 81p, in line with 2018-23 dividend plan

DELIVERING ON OUR PREVIOUS INVESTMENT PLANBreadth and quality of growth options mean acceleration required

63

KEY OBJECTIVES

REMUNERATE SHAREHOLDERS

PROMOTE LONG TERM SUCCESS

Sustain SSE’s ability to pay dividends on which pensioners and savers depend for income

Contribute to green economic recovery and create value through the transition to net zero

EFFECTIVE FINANCIAL MANAGEMENT

MANAGING CASH OUTFLOW

SECURING VALUE FROM DISPOSALS

COMPREHENSIVE PLAN

Technology Geography Net Capacity (MW)

Scotland 235

England 252

Total Offshore Wind 487

Scotland 1,180

England 68

Northern Ireland 122

Republic of Ireland 568

Total Onshore Wind 1,938

Pumped Storage 300

Conventional Hydro 1,159

Total Hydro 1,459

Total renewable generation capacity 3,884

SSE RENEWABLES – CURRENT OPERATIONSDiversity of key assets across geographies and technologies

64 Note: All capacities are net.

Greater Gabbard

Beatrice

Map of operational clusters

• Development commenced pre 2003 and was for many years the world’s largest offshore project in development

• World’s largest offshore wind farm at completion

• Currently developing North Falls as an extension project

• Scotland’s largest operational offshore wind farm

• World’s deepest installation of fixed foundations and largest offshore windfarm to use jacket foundations at completion

• Multi-contracting strategy • Completed £100m under budget

• World’s largest and deepest deployment of suction caisson jacket foundations

• Multi-contracting strategy across four work packages

• Unique financing strategy maximizes returns and external financing on partial CfD

• Will be world’s largest offshore wind farm• First deployment of the world’s largest

wind turbine, GE’s 13 MW Haliade-X• Awarded world’s largest cabling contract• First UK project to use HVDC grid connection• Multi-contracting strategy across >20 main

construction contracts for phases A&B

SSE RENEWABLES – LEADER IN OFFSHORE WINDLeading construction of more offshore wind than anyone else in the world

65

588MW operational since 2019Depth of up to 55m; Distance from shore >10km

1,075MW in constructionDepth of up to 62m; Distance from shore >30km

3,600MW in construction or due FID Depth of up to 63m; Distance from shore >130km

Development, construction & operations lead Development, construction & operations lead Development, construction & operations lead Development & construction lead

Depth of up to 34m; Distance from shore >20km504MW operational since 2012

~£1.5bn investment made on-balance sheet

~£2.5bn investment • Off-balance sheet funding refinanced in 2019• Gearing increased post construction allowing

equity release via dividends

~£3bn investment • Inc. £500m on offshore transmission link • Project financed with gearing of ~42%

~£6bn investment in phases A&B• Inc. ~1.7bn on offshore transmission link • Project financed with gearing of 65-70% for

generation assets

• Double ROC contract for 100% of output • CfD for 100% of output at £140/MWh1 • CfD for 42% of output at £41.61/MWh1 • CfD for 100% of output at £39.65/MWh1 (for phase A) and £41.61/MWh1 (for B & C)

1 In 2012 prices

CfD Allocation Round 4• Potential to bid remaining 58%

uncontracted capacity• 360MW extension opportunity

at Seagreen 1A is in development and may have option to bid

SSE RENEWABLES – KEY PROJECT UPDATESeagreen offshore wind farm

66

Capacity 1,075MWTurbine 10MW Vestas Average load factor c54%Annual production c5TWhSSE share 49%

First Seagreen jacket being installed Onshore cable pulling underway

• First 10 jackets installed successfully1

• Offshore substation jacket in transit• First power expected early 2022

1As at 16th November 2021

Onshore cables for Dogger Bank A and B arriving for installation

• Progressing onshore construction of cabling and substation for phases A and B

• First offshore works commencing in Q2 2022 with installation of the HVDC export cables for Dogger Bank A.

Dogger Bank C financial close expected by end of 2021 calendar year

SSE RENEWABLES – KEY PROJECT UPDATEDogger Bank offshore wind farm

67

Capacity 3,600MWTurbine 13 & 14MW GEAverage load factor c57%Annual production c18TWhSSE share 40%

Turbine testing facility in Blyth

SSE RENEWABLES – KEY PROJECT UPDATEViking onshore wind farm

68

Cement pouring and smoothing at Viking turbine foundation

Construction is progressing well with work on civils and DC substation continuing, turbines in early 2023 and completion planned for autumn 2024.• 60km out of 70km of access roads completed1

• 47 of the 103 turbine bases in construction, with 13 complete1

Capacity 443MWTurbine 4.3MW Vestas Average load factor c48%Annual production Almost 2TWhSSE share 100%

Construction of Viking wind farm access road

1As at 9th November 2021

SSE RENEWABLES – PROJECT ASSUMPTIONSAssumed future ownership percentages used as basis for slides 43 - 47

69

Technology Project Gross Capacity (MW)

Current SSE ownership

Assumed future SSE ownership

Net CapacityAdditions (MW)

Viking 443 100% 100% 443

Yellow River 105 100% 100% 105

Strathy South 208 100% 100% 208

Cloiche 155 100% 100% 155

Other <100MW 310 100% 100% 310

Total Onshore Wind 1,221 100% 100% 1,221Seagreen 1,075 49% 49% 527

Dogger Bank A & B 2,400 40% 40% 960

Dogger Bank C 1,200 50% 40% 480

Seagreen 1A 360 49% 49% 176

Arklow 520 100% 50% 260

Berwick Bank Up to 4,100 100% 40% 1,640

North Falls Up to 504 50% 50% 252

Total Offshore Wind Up to 10,159 70% 42% 4,295

Corie Glas 1,500 100% 50% 750

Total Hydro 1,500 100% 50% 750

Total Renewables Additions Assumed from Secured Pipeline 6,266

Developer profits are consistently included within adjusted EBITDA and EPS metrics and this remains part of future plans. FY21 EPS of 87.5p (the base year for the EPS CAGR on SL40) included £226m of developer profits. Modelling currently assumes any developer profits in FY26 are lower than the £226m achieved in the FY21 base year.

SSEN DISTRIBUTION - RIIO-ED2 DRAFT PLANPowering Communities to Net Zero

70

Ambitious stakeholder-led plan to build net zero resilience and enable local electrification• £4.1bn in baseline investment (gross) proposed from 2023 to 2028

• an increase of around 36% on equivalent ED1 period

• If agreed, RAV of SSEN Distribution would grow to over £6bn (gross) by 2028 • Plan is flexible, with an additional £900m of regulatory uncertainty mechanisms to support further acceleration

RECONCILIATION OF GROSS TO NET CAPEXImpact of partnerships, project financing1 and minority interests2

71

1 Assumes 65% gearing on Project Financing on Offshore Wind projects2 Assumes 25% minority interest disposal of Transmission and Distribution in April 2023

• Gross capex represents SSE’s gross consolidated share of capex invested in each business, based on current SSE ownership and including any capex funded by project financing within Joint Ventures.

• Capex metrics included within this presentation consistently includes investments in, or acquisitions of, development platforms and is presented net of project finance devex refunds.

Renewables Transmission Distribution Other

time to power change

Documents