Viridian Group PLC

1
Viridian Group PLC

• Interim results for the
• six months ended 30 September 2003

2
Philip RogersonChairman

3
Financial highlights

• Turnover increased to 371.0m (2002 - 331.8m)
• Group operating profit1 increased 7 to 50.8m
  (2002 - 47.6m)
• Contribution to operating profit from Viridian
  Power Energy up to 8.7m (2002 - 0.5m)
• EPS2 increased to 23.2p (2002 - 19.5p)
• Exceptional credit of 17.7m
• Dividends increased 3.5 from 9.14p to 9.46p per
  share
• 1 Pre exceptional items and goodwill amortisation

4
Progress against strategy
Operating profit Six months to 30 September 03 m

• NIE - to maximise efficiency of regulated
  electricity infrastructure
• Viridian Power Energy - to grow a profitable
  energy business in competitive markets across
  Ireland
• Viridian Capital - to maximise the potential of
  businesses outside the energy sector

40.8
8.7
1.3
50.8

• Delivering shareholder value through consistent
  performanceand sustainable dividend growth

net of inter-group elimination
5
Patrick BourkeGroup Finance Director
6
Profit summary
Six months to 30 September 03 m
Six months to 30 September 02 m
Turnover Operating costs Goodwill
amortisation Joint venture/associates Profit
before interest and tax Interest Profit before
taxation Taxation - current - deferred Profit
after tax Earnings per share Exceptional credit
371.0 (320.2) 50.8 (1.1) - 49.7 (13.6) 36.1 (6.4)
(1.3) 28.4 23.2p 17.7m
331.8 (284.2) 47.6 (1.1) (4.0) 42.5 (12.7) 29.8 (
5.2) (3.0) 21.6 19.5p -
Table excludes exceptional item
7
Profitability by business
Six months to 30 September 03 m
Six months to 30 September 02 m
Transmission and Distribution Power Procurement /
SONI NIE Supply NIE Powerteam Viridian Power
Energy Sx3 Moyle (sold April 2003) Other Operating
profit pre goodwill
35.5 2.9 3.9 1.0 0.5 0.2 3.4 0.2 47.6
34.1 3.0 2.9 1.0 8.7 1.5 - (0.4) 50.8
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Summarised balance sheet
30 September 03 m
31 March 03 m
Tangible fixed assets Intangible fixed
assets Other investments Working
capital Provisions Deferred income Net debt Net
assets
1,089.0 43.6 1.2 (38.1) (120.3) (206.3) (522.1) 24
7.0
952.3 41.4 1.2 (55.6) (111.4) (156.5) (390.4) 281.
0
9
Cashflow
Six months to 30 September 03 m
Six months to 30 September 02 m
68.2 (6.2) 62.0 (24.4) (5.0) (81.0) 71.0 - 22.6 (5
35.2) (512.6)
Cashflow Working capital movements Cashflow from
operating activities Interest Taxation Capital
expenditure Acquisitions and disposals Financing N
et debt movement Opening net debt Net debt
76.0 0.6 76.6 (21.4) (9.8) (36.4) 122.2 0.5 131.7
(522.1) (390.4)
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Patrick HarenGroup Chief Executive
11
Transmission Distribution

• Operating profit of 34.1m (2002 - 35.5m)
• Network capital expenditure of 32.7m (26.2m net
  of customer contributions)
• Increase in customer numbers to 733,000 units
  distributed increased by 1.1
• Incentives demand side management and other
  energy efficiency projects totalling 1.5m to date

12
Transmission Distribution

• Opex reduction in 03/04
• Customer Service Centre change programme
• Reduced locations lower telecom and IT costs
• Productivity gains
• Repair and maintenance
• Absorption of pension charges
• Six Sigma - key process tool
• Capex
• Rigorous appraisal of investment decisions
• Prioritisation of asset replacement
• High standards of customer service

13
Other NIE businesses

• PPB/SONI
• Operating profit of 3.0m (2002 - 2.9m)
• Price controls until March 2005
• 170MW North / South energy contract
• Government to pay down long term generation
  contracts by 30m per annum
• NIE Supply
• Operating profit of 2.9m (2002 - 3.9m)
• Price control in place until March 2005 - seeking
  extension to March 2007
• NIE Powerteam
• Operating profit of 1.0m (2002 - 1.0m)
• ESB framework contract

14
Viridian Power Energy

• Integrated business comprising Huntstown
  generation and Energia supply
• Huntstown output taken by Energia, Huntstown
  bears operational risk, Energia bears market risk
• Operating profits of 8.7m (2002 - 0.5m)
• Huntstown high availability in line with
  expectations
• Bid submitted for second phase at Huntstown

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Competitive market in RoI
Nameplate capacity 5,500MW Peak
demand 4,400MW Low reserve margin 10 -
15 Competitive market 40 Competitive market
size 1,250MW No. of customers 1,500 Market
prices compete with ESB tariffs Energia market
share 30 Further market opening early 2004 New
trading arrangements early 2006
Huntstown
Dublin
N/S interconnectors
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Competitive market in NI
Moyle Interconnector (500MW)
Belfast
Total capacity 2,100MW Peak demand 1,650MW Reser
ve margin c.25 Competitive market
size 400MW Eligible customers 750 Energia
market share c.50 Further market
opening Phased through 2004/05 Energia supplying
SMEs from renewable sources Energia on track to
meet renewables obligation
N/S interconnectors
17
Sx3

• Operating profit pre goodwill of 1.5m (2002 -
  0.2m)
• Good progress across the company
• Application Solutions iWorld migrations new
  orders
• Managed Services focus on local government
• Ireland Classroom 2000 Lot 3 contract well
  underway
• Scotland refocussed on larger, more profitable
  customers
• Focus remains on enhancing profitability and
  improving margins

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Summary

• Northern Ireland Electricity
• TD focus on cost reduction
• Other price controls to be extended
• Viridian Power Energy
• Huntstown achieving high availability
• Opportunities for Energia
• Viridian Capital
• Sx3 well placed in public sector markets
• Disposals allow refocussing of resources
• Intention to deliver real dividend growth across
  regulatory period