Company Announcements

SSE plc

notification of closed period

30 march 2023

á      2022/23 adjusted earnings per share expectations updated to more than 160 pence

á      SSE remains on course to deliver record investment, in excess of £2.5bn this year and ahead of earnings, underpinned by its strong balance sheet and underlying financial position

á      Will provide an update on future plans alongside 2022/23 financial results in May 2023, given strong growth prospects and delivery of Net Zero Acceleration Programme

Financial outlook

SSE is updating its expectations for full-year 2022/23 adjusted earnings per share to more than 160 pence from the previous guidance of more than 150 pence.

This reflects the strength and stability of SSE's balanced mix of regulated and market-facing businesses and the continued narrowing of the range of probable financial outcomes for the period. In particular, continued strong performance from flexible generation plant to support security of supply has more than offset the lower than planned renewables output¹ and associated hedge buy-back costs.

In line with SSE's five-year dividend plan, announced as part of its Net Zero Acceleration Programme (NZAP) in November 2021, SSE intends to recommend a full-year dividend of 85.7p per share plus RPI for 2022/23 followed by a rebase to 60p in 2023/24 to support the Group's significant investment plans. Thereafter, dividend increases of at least 5% per annum are targeted for 2024/25 and 2025/26.

INVESTING FOR GROWTH

SSE remains on course to deliver record investment in 2022/23 as it progresses its NZAP, with capital expenditure (including acquisitions) still expected to be in excess of £2.5bn. SSE will provide an update on its future plans on 24 May 2023, alongside the 2022/23 Full-year Results presentation.

The Group's balance sheet continues to strengthen with adjusted net debt and hybrid capital² expected to be below £9bn at 31 March 2023. At 23 March 2023, c.8% of available liquidity had been utilised on cash collateral for forward commodity contracts.

Finance Director Gregor Alexander said:

"As we progress our ambitious Net Zero Acceleration Programme, we are investing more than we make in profits into the infrastructure society needs for a more secure, affordable and clean energy system. Our balanced business model has performed well in a volatile year, helping to ensure security of supply.

" At the same time, we are progressing multiple projects and adding to our pipeline as we deliver on our net zero focused electricity infrastructure strategy. This strong performance leaves us well positioned to continue our significant investment programme and we will update the market with more detail in May."

Notes

SSE notes publication of the UK Government's 'Powering Up Britain' policy package today and will issue a separate response in due course.

SSE's Full-year Results presentation and Q&A session, to be held on 24 May 2023, will be conducted virtually.

¹ The shortfall in output from renewable sources has increased from around 10% below plan for the nine months to 31 December 2022, to around 13% below plan as at 23 March 2023.

² Following the minority interest disposal in SSEN Transmission during the period, adjusted net debt and hybrid capital excludes the 25% share of debt and cash in that subsidiary which is attributable to the non-controlling interest holder in line with the Alternative Performance Measures policy.