PROVIDING ENERGY TODAY BUILDING VALUE FOR TOMORROW SSE.LN July 2020 SSE’S INVESTMENT CASE • UK-listed energy group focused on regulated electricity networks and renewables sources of electricity • Strategy to create value in the transition to net zero through developing, operating and owning green infrastructure • Commitment to remunerate shareholders' investment through dividends, with annual DPS targets set to 2023 • Strategy underpinned by strong environmental, social and governance focus STRATEGIC FOCUS ON REGULATED NETWORKS AND RENEWABLES FY20 Adj. EBIT EXECUTING OUR STRATEGY £9.1bn • Developing, operating, owning, applying world-class skills and experience to the low-carbon infrastructure needed now and in the Networks RAV future £1.5bn • Creating value for shareholders and society, earning profit from successful development, operation and responsible ownership of c. low-carbon assets; while delivering inclusive services, contributing 4GW to inclusive economic growth and sustainable jobs Renewable Regulated networks Renewables Capacity • Delivering in a sustainable way, being purpose-led, adopting four Other fundamental business goals aligned to the UN’s SDGs

OPPORTUNITIES THROUGH THE LOW CARBON TRANSITION UK legislation for ‘net zero’ emissions by 2050 Irish Climate Action Plan UK is the first major economy to legislate for ‘net zero’ emissions Irish Government supports adoption of a net zero target by 2050 • Electrification of transport and heat • Aim for >70% of Irelands electricity from renewables by 2030 • Maximising renewable energy sources key to achieving target • Commitment to carbon pricing as a core policy measure to • Central enabling role for electricity networks reduce greenhouse gasses

SIGNIFICANT INVESTMENT OPPORTUNITIES IN THE FIVE YEARS TO FY25

Investment Programme Electricity Networks Renewables £7.5bn capex plan across the five years Transmission Offshore to 2025* • Business Plan includes £2.4bn Totex • 1,075MW Seagreen across the RIIO-T2 price control (FY21 (SSE share 49%) – FY26)* • 3,600MW Wind Farm £7.5bn Electricity Networks • Could take RAV from £3.5bn to £5bn (SSE share 50%) Renewables £7.5bn by 2025/26, excluding island links £1.5bn equity investment net of project Other Distribution finance refunds across both projects • Leadership position in innovation Onshore • Aiming for strong finish to RIIO-ED1 • 443MW *Net of project finance devex refunds (to FY23) • 100% owned, £580m investment *subject to Ofgem final determinations

FINANCIAL STRENGTH Sustainable financial framework £2bn Disposals Programme Good liquidity position Net debt/EBITDA range Sharpening focus on core business • New debt issued in April & June 2020 • Maintain net debt/EBITDA ratio at the In progress • Average debt maturity 6.5 years lower end of a 4.5 to 5 times range • Gas Production Assets • £1.5bn cash and committed facilities from 2021-2025 • Contracting Refinancing requirements Credit rating To be initiated • No new financing requirement within • Maintain credit ratios comfortably • Walney Offshore Wind Farm the next two years, assuming £2bn above those required for investment • Multifuel disposals grade Further options Partnering in Networks and Renewables

2020/21 AND BEYOND KEY OBJECTIVES Target full year dividend of 80p + RPI for 2020/21 SUSTAIN DIVIDENDS Sustain SSE’s ability to pay dividends on which pensioners Expected interim dividend of 24.4p* for 2020/21 and savers depend for income Confident SSE can deliver 2018-23 dividend plan PROMOTE LONG TERM SUCCESS Contribute to green economic Plan to invest £7.5bn net in five years to 2025 recovery and create value through the transition to net zero *Assuming RPI inflation of 1.5% REGULATED NETWORKS SSE.LN EARNING FAIR RETURNS July 2020 SSE’S REGULATED NETWORKS BUSINESSES • Combined Regulated Asset Value (RAV) of £9.1bn at 31 March 2020 Electriticy Transmission • Expected to reach £10bn by 2023; net zero trajectory means it could RAV reach £12bn by 2026 (excl. island links) Electricity £9.1bn • Economically regulated by Ofgem Distribution • Diversified across Electricity Transmission, Electricity Distribution and Gas Distribution Gas Distribution

ELECTRICITY TRANSMISSION ELECTRICITY DISTRIBUTION GAS DISTRIBUTION

• RAV £3.5bn • • RAVRAV £3.7bn £3.5bn • RAV £1.9bn • 100% owned • • 100%100% owned owned • 33% owned • Capex intensive • • PredictableCapex intensive returns • Regulatory frontier • Growth opportunity • • DSOGrowth opportunity opportunity • Option to sell

SSEN TRANSMISSION • Strong record in enabling decarbonisation • Renewable capacity connected to the grid increased to 6.3GW in FY20 • Forecast to reach 10GW by FY26 • SSE’s RIIO-T2 Business Plan includes Totex of close to £2.4bn over the five years to FY26 – subject to Ofgem’s Final Determination • Potentially taking Transmission RAV to over £5bn • A Net Zero trajectory would point to at least £3.5bn Totex over the course of RIIO-T2

SSEN DISTRIBUTION • Vital role in the transition to net zero • Electrification of heat and transport create long term growth opportunity • Heavily focused on delivering change and modernising operations, infrastructure and work practices • Aiming for strong finish to RIIO-ED1 • Working with stakeholders to prepare for RIIO-ED2

£bn NETWORKS RAV FORECAST ASSUMING £2.4BN TRANSMISSION TOTEX 14 4 12 1, 2 3 10 8 6 4

2 £2.4bn Transmission Totex (excl. Island links) subject to Ofgem Final Determination 0 FY20 FY21 FY22 FY23 FY24 FY25 FY26

Transmission Distribution SGN

1. RIIO T2 3. RIIO ED2 2. RIIO GD2 4. Combined Networks RAV could reach £12bn 2 REGULATED NETWORKS SSE.LN EARNING FAIR RETURNS July 2020 SSEN TRANSMISSION SSE’s electricity transmission network in the north of Scotland uses high voltage overhead lines and underground and subsea cables to carry electricity from the mainly renewable generating plant to the distribution network. It is economically regulated by Ofgem. The RIIO-T1 Price Control runs until March 2021, and the RIIO-T2 Price Control will run from April 2021 to March 2026.

KEY SOURCES OF VALUE • RAV expected to grow to around £3.6bn by FY21 • Based on SSEN’s formal plan submission, powerful case for investment which could grow RAV to over £5bn by FY26

RIIO-T2 A NETWORK FOR NET-ZERO Five clear goals Ofgem is in the process of setting the next price control for Transmission, RIIO-T2, which will run April 2021 to March 2026. As part of this process, in December 2019 SSE published its Business Plan entitled ‘A Network for net Zero’. It sets out SSE’s analysis that a minimum total expenditure (totex) of £2.4bn is required over the five year period to maintain and grow the north of Scotland transmission network to meet the certain needs of current and future electricity generators and customers.

The £2.4bn totex includes £1.1bn of growth-driven investment including East Coast upgrades; Argyll refurbishment and upgrade; Tummel SVC; projects started in RIIO-T1 and pre-construction works. The remainder covers projects investing in assets, including c£50m in Beauly-Kintore; along with resilience, IT and data investment.

SSEN DISTRIBUTION SSE’s electricity distribution networks in the north of Scotland and central southern use Overhead lines and Underground cables to deliver electricity to around 3.8 million homes and workplaces. They are economically regulated by Ofgem. The RIIO-ED1 Price Control runs until March 2023 and the RIIO-ED2 Price Control will run from April 2023 to March 2028.

KEY SOURCES OF VALUE • Stable earnings stream supporting the dividend • ED1 Price Control runs to March 2023 • Targeting improvements in incentives performance • Preparing the ground for Distribution System Operator (DSO) role

OPPORTUNITIES IN ELECTRIFYING NATIONAL GRID DEMAND FORECAST SCENARIOS TRANSPORT AND HEAT 90 80 70

Demand GW Electric 60 Side Vehicles Response 50 40 2010 2015 2020 2025 2030 2035 2040 2045 2050 Batteries History Community Renewables Two Degrees Steady Progression Consumer Evolution

3 SSE RENEWABLES SSE.LN LEADING IN RENEWABLE ENERGY July 2020

SSE Renewables brings together the development and operation of all of SSE’s renewable energy assets under a single management team, creating the leading renewable energy company across the UK and Ireland, with ambitions beyond those two countries. It has a sector-leading management team with the focus, specialisation and innovation needed in a distinct part of the energy sector, in which SSE has a large pipeline of opportunities.

KEY SOURCES OF VALUE CAPACITY (MW) REMUNERATION SCHEME • Biggest renewable energy portfolio across UK & Ireland 2,216 ROC £/MWh • Technology diversity (flexible hydro, run-of-river hydro, 235 CfD £/MWh pumped storage, onshore wind, offshore wind) 2,021 CfD £/MWh for offshore in construction • Semi regulated income • Operational excellence 375 REFIT €/MWh • Development and construction expertise 850 Capacity Mechanism £/MW

SSE RENEWABLES - FUTURE WIND DEVELOPMENT

OPERATIONAL DUE FID OR IN CONSTRUCTION CONSENTED REQUIRING CONSENT MW MW MW MW

GB Onshore 1,247 Viking 443 Yellow River 105 Strathy South 208

NI Onshore 122 Gordonbush Ext. 38 Tangy 57 Cloiche 155

ROI Onshore 567 Lenalea 15 Doraville 138 ONSHORE Galway Wind Park 14 Other circa. 300

Total 1,936 Total 481 Total 192 Total 801

MW MW MW MW

Greater Gabbard 252 Dogger Bank A 600 Arklow Bank 2 520 Seagreen 2 & 3 3,200

Beatrice 235 Dogger Bank B 600 Gabbard Extension 250 Dogger Bank C 600

OFFSHORE Walney 92 Seagreen 1 (42% CfD) 526

Total 579 Total 2,326 Total 520 Total 3,450 TOTAL: 2.5GW TOTAL: 2.8GW TOTAL: 0.7GW TOTAL: 4.3GW

SSE RENEWABLES GROWTH OUTLOOK Renewables growth from core projects (before any sell-downs) GW 7 8, 9 10 12 6 5 7 6 2 4 5

4

3

2 11

1 1 3 0 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26

Hydro Onshore Offshore

1. Dogger Bank A/B FID 4. Seagreen first power 7. Dogger Bank A Completion 10. Dogger Bank B Completion 2. Gordonbush ext completion 5. Seagreen Completion 8. Dogger Bank B first power 11. Dogger Bank C first power 4 3. Dogger Bank C FID 6. Dogger Bank A first power 9. Viking Completion 12. Dogger Bank C Completion SSE RENEWABLES SSE.LN FOCUS ON KEY PROJECTS July 2020

SEAGREEN OFFSHORE WIND FARM

DOGGER BANK OFFSHORE WIND FARM

VIKING ONSHORE WIND FARM

5 SSE RENEWABLES SSE.LN 1.5GW HYDRO CAPACITY July 2020

750MW 409MW 300MW FLEXIBLE HYDRO RUN OF RIVER PUMPED STORAGE

Nature’s Batteries

Additional Pro-active long- Option for new revenue streams High levels of term capital 600MW pumped from flexible availability investment storage at Coire hydro programme Glas

SSE THERMAL ENERGY PROVIDING FLEXIBILITY THROUGH LOW CARBON TRANSITION

FLEXIBLE GAS-FIRED WASTE-TO-ENERGY • SSE currently owns 69MW of waste-to- GENERATION energy projects at Ferrybridge, and planning • SSE owns and operates 5.3GW of gas- for 44MW (100%) at Skelton Grange (Both fired generation, including five of the 50/50JVs with Wheelabrator Technologies ) most flexible and efficient gas-fired power • 50MW Slough Multi-fuel in development stations in the UK and Ireland (SSE 50% stake with CIP)

KEADBY 2 HYDROGEN & CARBON CAPTURE • Investing £350m to construct the new • Actively looking at developing generation 840MW Keadby 2 project in assets with low carbon pathways Lincolnshire • Member of Humber Cluster, participating in • Set to be cleanest and one of the UK Government Industrial Strategy most efficient CCGTs in the world Challenge Fund competition

OTHER BUSINESSES CONTRIBUTING TO THE SSE GROUP

BUSINESS ENERGY ENTERPRISE EPM • Supplies energy to over 0.5m GB • Provides energy infrastructure and • Executes commodity trades for business and public sector services for business and public each asset class on behalf of customers sector customers SSE’s Business units • Important route to market for • SSE’s option for fast growing renewable distributed energy markets

AIRTRICITY GAS STORAGE GAS PRODUCTION* • Supplies energy to over 0.7m • Provides and operates gas storage • Investment in production and household, business and public facilities processing of gas and oil from sector customers across Ireland UKCS *SSE is in a process to sell Gas Production assets

6 SSE.LNSSE.LN JulyJuly 2020 2020

SSE’s strategic goal is to create value for shareholders and society. SSE recognises that a sustainable company is purpose-led; and that a purpose-led company is one that offers profitable solutions to the world’s problems. The UN’s Sustainable Development Goals (SDGs) are the blueprint for addressing global challenges, including climate change, and therefore SSE’s four 2030 business goals are aligned to the UN’s SFGs more material to its business.

ENGAGING WITH ESG PLATFORMS LAST TWO YEARS’ PERFORMANCE

7 FY19/20 RESULTS

FINANCIAL FRAMEWORK AND DIVIDEND SSE.LN July 2020

FINANCIAL MANAGEMENT AND LIQUIDITY MANAGING CASH OUTFLOW Good liquidity position Reducing 2020/21 cash outflow by c£250m • Moved quickly to issue new debt in April 2020 • Prioritising and deferring capital expenditure (90%) • Average debt maturity 6.5 years • Reducing and deferring operational expenditure plans • Cash and committed facilities of over £2bn, after (10%) redemption of €600m Eurobond Strategic investment projects unaffected Refinancing requirements Designed to earn sustainable returns to support earnings • No refinancing requirements over the next two No new share buy-back programmes in 2020/21 years assuming £2bn disposals No buy-back of shares irrespective of scrip uptake

TARGETING PROCEEDS OF OVER £2BN BY AUTUMN 2021 Disposal of non-core assets • SSE not main operator • Less aligned with net zero

Securing value from partnering

The SSE Team

Sally Fairbairn Wendy Pringle-MacIntyre Rory Newton Marlon Hall Company Secretary & Director Investor Relations Investor Relations Manager Investor Relations Senior Analyst Investor Relations Analyst +44 (0)1738 456491 +44 (0)1738 512907 +44 (0)1738 516916 +44 (0)1738 457407 [email protected] [email protected] [email protected] [email protected]

Disclaimer This financial report 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 document or its contents. 8 This document 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.