Electrabel withdraws its representatives from Eandis governing bodies as from 30 June 2011.

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1 Regulated information Melle, 31 August 2011 HALF-YEARLY FINANCIAL REPORT OF THE EANDIS-GROUP 1 AS PER 30 JUNE 2011 HIGHLIGHTS 2 As from 1 July 2011 Luc De Bruycker has succeeded Guy Peeters as Chairman of Eandis Management Committee. Walter Van den Bossche has become Vice-Chairman of the Management Committee. Electrabel withdraws its representatives from Eandis governing bodies as from 30 June Eandis has established - in collaboration with Infrax, Ores and Sibelga the new company Atrias cvba. Atrias should develop a new standard for the market processes and information exchanges by the year Eandis and the mixed Flemish distribution system operators (DSOs) have decided to launch a broad-scale pilot project for smart meters. Thanks to a reallocation in the share capital of each of the DSOs the capital attributable to the public authorities has increased to an average of 79 per cent; the private partner s portion in the share capital has decreased to an average of 21 per cent. The Constitutional Court has partly nullified the so-called Ratification Act for the distribution tariffs of electricity, but this judgment has no direct impact on the DSO tariffs which had been approved earlier. Antwerpse Waterwerken (AWW) has joined De Stroomlijn, an Eandis subsidiary. This confirms De Stroomlijn s unique position as customer contact centre for network related companies. 1 The Eandis-group comprises Eandis cvba and its consolidated subsidiaries De Stroomlijn cvba, Indexis cvba and Atrias cvba. 2 All comparisons are with the figures reported as per 30 June 2010, unless stated otherwise. 1

2 Total operating revenue and operating costs have increased with approx. 7 per cent in relation to an increase in the activity level. The increase of the costs for Rational Use of Energy (RUE) subsidies to [ ] million EUR, or + [ ] per cent, reflects the enduring success of the RUE measures. A status-quo in the number of staff for Eandis cvba with employees (4.175,50 full-time equivalents), i.e. a limited increase with 7 employees or + 0,16 per cent compared to 31 December No profit or loss, since all costs can be fully transferred to the distribution system operators based on the transfer at cost principle. MANAGEMENT REPORT The management of the company has undergone some major changes during the first half of the year Guy Peeters, Chairman of the Management Committee, has terminated his professional career. The Board of Directors has nominated Luc De Bruycker, previously director-general and Vice- Chairman of the Management Committee, as his successor. Walter Van den Bossche, director Finance and Administration, was nominated as director-general and Vice-Chairman of the Management Committee. These nominations entered into force on 1 July 2011 and are valid until the Annual Shareholders Meeting in At that moment Walter Van den Bossche will assume the chairmanship of the Management Committee. The Board of Directors has requested the renewed management to investigate a few possible strategic options on the mid term for the Eandis Group. Electrabel, private shareholder in the 7 Flemish mixed distribution system operators, has decided to withdraw as from 30 June 2011 all of its representatives in Eandis governing bodies (Board of Directors, HR Committee and Audit Committee). Electrabel has also reduced its representation in the DSOs governing bodies and foregone a number of its statutory and contractual rights. Electrabel s financial participation in the DSOs will remain unchanged as it was realized after the capital optimization carried out on 30 June After this optimization an average of 79 per cent of the DSOs share capital is held by the public authorities, 21 per cent of the capital is held by Electrabel. In a judgment dated 31 May 2011, the Constitutional Court has partly nullified the Ratification Act of 15 December 2009; this act was in particular nullified insofar as it relates to the articles 9 to 14 of the Royal Decree of 2 September 2008 with respect to the distribution tariffs for electricity. However, this judgment does not have a direct impact on the tariffs which had been approved earlier and which the DSOs charge for the use of their network infrastructure. On 9 May 2011 Eandis and three other distribution grid companies (Infrax, Ores and Sibelga) established a new company, Atrias cvba. Atrias has the mission to develop by the year 2015 a new UMIG, i.e. a standard for the market processes and information exchange, and to pave the way for a future federal Clearing House. Eandis has taken a 25 per cent stake in Atrias share capital. Atrias is included in the consolidation as from the half year results 2011 according to the equity method. 2

3 In February 2011 the Boards of Directors of Eandis and the Flemish mixed DSOs have decided to launch a broad-scale pilot project for smart meters. Approximately smart meters will be installed ( at Eandis, in the Infrax area). This project should allow for an optimization of the technical systems to a mature technology which is suitable for a general roll-out. The economic viability of a global roll-out will be investigated in a cost/benefit analysis. Special attention will be paid to the (surplus) value of a smart meter for the consumers and society in general, to the advantages in the field of energy efficiency, and to privacy and data security aspects. As from 1 May 2011, De Stroomlijn has enlarged its scope of activities with the settlement of calls from customers of the Antwerp Water Works (AWW), a water distributing company in the Antwerp region. AWW also joins De Stroomlijn as one of its shareholders; as a result, Eandis portion in De Stroomlijn s share capital is reduced from 65,92 per cent to 64,03 per cent. Eandis and the Flemish mixed DSOs keep their focus on the Rational Use of Energy (RUE). The most remarkable event in this respect was the signing at the end of February 2011 by the City of Antwerp, the Antwerp Autonomous Municipal Company for Education, distribution system operator IMEA and Eandis of an agreement for the largest RUE-project in Flanders. Through 92 projects a total amount of 16,6 million EUR will be invested in energy saving measures, aiming at improving the overall quality of 50 school buildings and their comfort of use. After implementation of these projects the energy bills of these 50 school buildings will be down by approx. 26 per cent. Eandis actively participates in several projects of research, innovation and development in the field of electric mobility. For example, Eandis is currently collaborating with a number of partners within the Electric Vehicles in Action platform (EVA) in order to facilitate the innovation and adoption of electric vehicles. As announced in the 2010 Annual Report the increase of Eandis cvba s staff has stabilized during the first half of The net increase between January and June 2011 amounted to 7 persons to a new total of staff members. RISK FACTORS The risk factors as described in the 2010 Annual Report and the prospectus dated 2 June 2010 (as updated on 24 November 2010) have remained valid for the first semester of OUTLOOK For the second semester of 2011 Eandis expects that, barring unforeseen economic developments, there will be no substantial deviations vis-à-vis the defined objectives. Meanwhile, Eandis is closely monitoring the financial and economic evolutions. 3

4 REPORTING STATUS These condensed financial statements for the period ended 30 June 2011 were approved for publication by Eandis Board of Directors on 31 August On 31 August 2011 Eandis statutory auditor, Ernst & Young Bedrijfsrevisoren represented by Mr Jan De Luyck, issued a limited review report on the consolidated half-year financial information for the six-month period ended 30 June 2011, stating that the interim financial information has been prepared in accordance with IAS 34, Interim Financial Reporting as adopted by the EU. STATEMENT BY THE RESPONSIBLE PERSONS The undersigned persons state that, to the best of their knowledge, the condensed financial statements of Eandis cvba and its subsidiaries as of 30 June 2011 have been prepared in accordance with the International Financial Reporting Standards (IFRS), and give a true and fair view of the assets and liabilities, financial position and results of the whole of the companies included in the consolidation; and the interim management report gives a fair overview of the information required to be included herein. Melle, 31 August 2011, For the Board of Directors, Luc DE BRUYCKER, Director-general, Chairman Management Committee Walter VAN DEN BOSSCHE, Director-general, Vice-Chairman Management Committee 4

5 AUDITOR S REPORT 5

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7 PROFILE OF THE REPORTING ENTITY Eandis cvba and its subsidiaries De Stroomlijn cvba, Indexis cvba and Atrias cvba (together the Eandis-group or the Group ) is the independent company that carries out operational tasks and public service obligations for electricity and gas at cost price for the Flemish mixed distribution system operators Gaselwest, IMEA, Imewo, Intergem, Iveka, Iverlek and Sibelgas. The Group s result therefore is without any profit or loss. ANNEX Condensed IFRS financial statements for the six-month period ended 30 June 2011: Income statement Statement of comprehensive income Balance sheet Cash flow statement Statement of changes in equity Comments Notes 7

8 EANDIS Group IFRS financial statements for the six-month period ended 30 June 2011 CONSOLIDATED ACCOUNTS Income statement (In thousands of EUR) 30 June June 2010 Operating revenue Revenue Other operating revenue Own construction capitalized Operating expenses Cost of trade goods Cost for services and other goods Personnel expenses Depreciation, amortization and changes in provisions Amounts written down on current assets 0 11 Other operational expenses Result from operations Financial income Financial expenses Profit before tax Income tax expenses Result for the period 0 0 8

9 Statement of comprehensive income (in thousands of EUR) 30 June June 2010 Actuarial gain (loss) on long term employee benefits Actuarial gain (loss) on rights to reimbursement on long term employee benefits Other comprehensive income 0 0 Result for the period 0 0 Total comprehensive income for the period 0 0 9

10 Balance sheet (In thousands of EUR) 30 June December 2010 Non-current assets Property, plant and equipment Investments in an associate 5 0 Financial assets Rights to reimbursement on long term employee benefits Long term receivables, other Current assets Inventories Trade and other receivables Receivables cash pool activities Current tax assets Cash and cash equivalents TOTAL ASSETS EQUITY Equity attributable to owners of the parent Share capital and reserves Non-controlling interest LIABILITIES Non-current liabilities Provisions for employee benefits Loans, non-current Current liabilities Loans, current Trade payables and other current liabilities Liabilities cash pool activities Current tax liabilities TOTAL LIABILITIES

11 Cash flow statement (In thousands of EUR) 30 June June 2010 Result for the period 0 0 Depreciation on property, plant and equipment Amounts written off on current assets (Write back -; recorded +) Loss/profit on realization receivables 64 6 Net finance expense Gain and loss on sale of property, plant and equipment 0-18 Income tax expense Operating cash flow before changes in working capital and provisions for employee benefits Change in inventories Change in trade and other receivables Change in trade payables and other current liabilities Net operating cash flow Financial expenses paid Financial income received Financial discount on debts Income tax paid Net cash flow from operating activities Proceeds from sale of property, plant and equipment 0 19 Acquisition of property, plant and equipment Acquisition of financial assets Proceeds/(acquisition) from other long term receivables 12-1 Net cash flow used in investing activities Issuance of capital 8 0 Repayments of loans Issuance of bonds Change in short term loans and borrowings Change in cash pool (Current account) Provide long term loans Dividends received Net cash flow used in financing activities Net change in cash and cash equivalents Cash and cash equivalents - at beginning of period Cash and cash equivalents - at end of period

12 Statement of changes in equity (in thousands of EUR) Share Capital Reserves Equity attributable to owners of the parent Noncontrolling interest Total Balance as per 1 January Changes in consolidation scope Result for the period Other comprehensive income Subtotal Balance as per 30 June Balance as per 1 January Changes in consolidation scope Result for the period Other comprehensive income Subtotal Balance as per 30 June

13 Comments Income statement Revenue amounts to keur, an increase of keur compared to the first half of The increase is related to the costs, which can be entirely charged mainly to the distribution system operators. The cost of trade goods increases to keur or keur more compared to the first half of 2010, especially for the division Electricity. The costs for services and other goods amount to keur, an increase of keur compared to the first half of This increase is mainly due to costs for the smart metering project and costs related to investments and distribution network operating costs. The costs for rational use of energy (RUE) amount to keur for the first half of 2011 or keur more than in the same period of last year. Due to a higher number of staff members as compared with the first semester of 2010 the personnel expenses increased with keur to keur. The financial income increases to keur, an increase of keur due to the provisions for interest receivable on loans to the distribution system operators. The other interest income relates to interest mainly achieved through the cash pool activities with the DSOs, the financial discount obtained from the suppliers and dividend received from financial assets. The financial expenses increase to keur, an increase of keur as a result of the set up of provisions for interest payable on the bond loans and interest paid on other financial obligations with the banks. During the first half of 2011 interest rates are on average higher than in Therefore the financial income and expenses are higher in 2011 than they were in The result is always without any profit or loss, since all the costs can be charged on mainly to the distribution system operators, shareholders. Balance Review and analysis of the first six months of 2011 compared to the full year ended on 31 December As a result of the establishment of Atrias, a central clearing house with Infrax, Ores and Sibelga, the Group has recorded an amount of 5 keur as an investment in an associate. The right to reimbursement on long term employee benefits decreases from keur to keur, a decrease of keur. This decrease is the result of the decrease in the provision for employee benefits with this same amount. 13

14 The other long term receivables remain almost unchanged and amount to keur. This receivable originates from lending on to the distribution system operators funds that were obtained by Eandis from the issuance of the bonds during Trade and other receivables amount to keur, or an increase of keur. This increase is due to the recording of provisions for accrued income, mainly for interest receivable from the distribution system operators. Receivables cash pool activities from the Distribution system operators slightly decrease with keur from keur to keur. The non-controlling interest increases with 8 keur following the participation of Antwerpse Waterwerken (AWW) in the share capital of De Stroomlijn, a subsidiary of Eandis. The long-term loans include the proceeds of two bond issuances during 2010 for a total of keur. These bond loans were issued above par at 101,995 per cent and 101,920 per cent respectively and are due in 2017 and 2020 respectively. The current loans decrease from keur to keur, a decrease of keur. The trade payables and other current liabilities increase from keur to keur, mainly as the result from increased provisions for invoices to be received, interest payable on the bond loans and accrued expenses related to personnel expenses. Cash flow The net cash flow from operating activities represents a net inflow of keur in the first half of 2011 and keur in the first half of The net cash flow from investing activities represents a net outflow of 612 keur in the first half of 2011 and keur in the first half of The net cash flow from financing activities represents a net outflow of keur in the first half of 2011 and keur in the first half of Risk factors The risk factors as described in the 2010 Annual Report and the prospectus dated 2 June 2010 (as updated on 24 November 2010) have remained valid for the first semester of

15 Notes Reporting entity Eandis cvba and its subsidiaries De Stroomlijn cvba, Indexis cvba and Atrias cvba (together the Group ) is the independent company that carries out operational tasks and public service obligations for electricity and gas at cost price for the Flemish mixed distribution system operators Gaselwest, IMEA, Imewo, Intergem, Iveka, Iverlek and Sibelgas. The Group s result therefore is without any profit or loss. These consolidated interim financial statements for the six months ended 30 June 2011 were approved for publication by the Board of Directors on 31 August IFRS standards The consolidated IFRS financial statements for the six-month period ended 30 June 2011 have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as adopted by the European Union. They do not contain all the information necessary for a full set of financial statements, and should therefore be read in conjunction with the Group s financial statements for the year ended on 31 December The accounting policies used in the preparation of the consolidated financial statements correspond to the accounting policies applied in the preparation of the consolidated financial statements for the year ended 31 December 2010 except for the new standards or interpretations in force since 1 January A detailed list of these new standards and interpretations was included in the financial statements of 31 December 2010 (see note Summary of significant accounting rules). The application of these new standards, interpretations, and amendments to published standards do not significantly affect the Group s results. The Group has chosen not to early apply standards and interpretations. Important events during the reporting period The Eandis consolidation changed due to the establishment of Atrias cvba on 9 May Eandis has taken a 25 per cent stake in this company s share capital. Therefore, Atrias is included in the Eandis consolidation according to the equity method, and for the first time in the financial statements for the six-month period ended 30 June

16 Transactions with related parties The nature of the transactions with the members of the Management Committee and the directors during the first semester of 2011 do not materially differ from the transactions as included in the 2010 Annual Report. Subsequent events No major events after balance sheet date have materialized. CONTACT Eandis cvba, Brusselsesteenweg 199 B-9090 Melle VAT number: BE Press Simon VAN WIJMEERSCH, tel mail: simon.vanwijmeersch@eandis.be Investor relations Koen SCHELKENS, tel mail: koen.schelkens@eandis.be 16