PRESS RELEASE 29 February 2012

Transcription

1 Keizerslaan 20 Tel.: +32 (0) Boulevard de l'empereur, 20 Fax: +32 (0) B-1000 Brussels PRESS RELEASE 29 February 2012 Elia posts better than expected results for both in Belgium and in Germany; in Belgium, approved tariffs for ensure stability and organic growth Elia publishes strong yearly results for, with equity per share reaching 33.9 and the dividend increasing by 5% to The investment programme in Belgium and Germany was implemented; quality of electricity supply was superior to 99,999%. In Belgium, approved tariffs for , involving incentive mechanisms for improving efficiency and investments, ensure visibility and stability. Belgium s Electricity Act expands Elia s role as transmission system operator to the future offshore grid. 1. IFRS key figures Consolidated results of Elia, the operator of the high-voltage grid in Belgium and of 50Hertz, the operator of the high-voltage grid in Germany, as per the International Financial Reporting Standards (IFRS): Consolidated results (million ) Difference (%) Revenues 1, , % REBITDA % EBITDA % Operating profit (REBIT) % Operating profit, including non-recurring items (EBIT) % Finance result (128.6) (123.2) 4.4% Income taxes (43.3) (34.0) 27.4% Basic earnings, including non-recurring items, attributable to the Owners of the Company % Basic earnings, excluding non-recurring items, attributable to the Owners of the Company % Basic earnings, including non-recurring items, per share ( ) % Basic earnings, excluding non-recurring items, per share ( ) % Dividend per share ( ) % Balance sheet (in million ) Difference (%) Total assets 5, , % Equity, attributable to the Owners of the Company 2, , % Net financial debt 2, , % Equity per share ( ) % Number of shares (end of period) 60,355,217 60,355, % Weighted average number of shares (end of period) 60,355,217 54,549, % EBITDA = EBIT + depreciation / amortization + changes in provisions REBITDA = recurring EBITDA (excluding one-off items) 1

2 Financial The Elia Group s consolidated revenue in was positively influenced by the acquisition of 60% of 50Hertz Transmission, since it was consolidated for a full 12 months for the first time. As the acquisition took place in May, only the last seven months were included in. The drop in EBITDA, EBIT and net profit including non-recurring items (down 34.7 %, 45 % and 69 % respectively) is a consequence of the one-off accounting non-cash gain (gain on bargain purchase) of million in. In contrast, the recurring EBITDA, REBIT and recurring net profit increased by 9.6%, 9.3% and 11.6% respectively. However, the net profit (excluding non-recurring items) per share was only up 0,9% because this value is calculated on the basis of the weighted average number of shares and not the number of share at the end of period. Further details of the financial performance of the activities of the two constituent transmission system operators (Elia Transmission in Belgium and 50Hertz Transmission in Germany) are to be found in the individual segment reporting sections. The net financial debt fell slightly (0.7%) to 2,532.9 million. Shareholders equity for the Group was up 2 %, from 2,007.2 million on to 2,046,9.1 million. The decrease for equity per share from 36.8 to 33,9 is a result of the calculation being based on the weighted average number of shares. Taking the number of shares at the end of period as the basis, equity per share rose from to 33,9. The Board of Directors will recommend to the General Meeting of Shareholders on 15 May 2012 to pay out a gross dividend of 1.47 per share, i.e. a net dividend of per share, or per share with a VVPR strip. 1.A. Segment reporting for Elia Transmission (Belgium) The results of Elia Transmission for its TSO activities in Belgium, as per International Financial Reporting Standards (IFRS): Results Elia Transmission (in million ) Difference (%) Revenue % EBITDA % Operating profit (EBIT) % Finance result (117.6) (112.6) 4.4% Income taxes (29.8) (20.8) 43.3% Basic earnings, attributable to the Owners of the Company % Balance sheet (in million ) Difference (%) Total assets * 4, , % Net financial debt 2, , % EBITDA = EBIT + depreciation / amortization + changes in provisions REBITDA = recurring EBITDA (excluding one-off items) Financial (IFRS) In, Elia Transmission s revenue in Belgium increased to million, up 5.1% compared to the same period last year. The table hereafter provides more details of changes in the various revenue components. * This section includes a reclassification of the figures as per for comparison reasons. 2

3 Detail revenue (in million ) Difference (%) Grid connection revenue % Grid use revenue % Revenues from the reversal of surpluses from previous years (decision by the regulator) % Ancillary services revenue % International revenue % Other revenue % Subtotal revenue % Deviations from approved budget (settlement mechanism) 2.6 (37.1) n.r. Total revenue % Grid connection revenue rose by 3.6%, mainly due to an increase in the number of new connections by industrial customers compared to the previous year. Grid use revenue remained more or less at the same level as in. The lower volumes as a result of the economic crisis, mild temperatures and the rise in decentralised generation (especially in the second half of ) compared with the previous year were offset by surplus revenue from grid imbalances. Revenue from reversal of surpluses from previous years increased by 34.9% to 46 million as agreed with the regulator in the tariffs for As a result, all the remaining surplus from the period from 2002 up to and including 2006 were returned to customers. The disappearance of these tariff surpluses is one of the reasons for the rise in tariffs for the period Ancillary services revenue dropped by 6.1% due to a lower level of off-takes from the Elia grid and lower purchasing costs, which have to be passed on. International revenue fell by 16.1% compared to, mainly as a result of further optimisation of the utilisation of border capacity due to market coupling with Belgium s neighbours. Other revenue rose slightly from 6.8% to 53.7 million, primarily on account of the application of IAS 19 1 (up 7.4 million), the deconsolidation of Belpex (down 2.9 million) and a decrease in own produced assets (down 1.1 million). In comparison with the tariff approved for by CREG in late 2007 as regards non-controllable costs and revenue, an operational tariff deficit of 2.6 million has been established (to be passed on to the tariffs of the next tariff period). The EBITDA (up 5.1%) and the EBIT (up 9.6%) rose sharply in compared with, mainly due to the increase in revenue. Net finance expenses (up 4.4%) were adversely affected by the absence of capital gains on the sale of Belpex in ( 8.4 million), which was partly offset by more revenue from surplus cash and lower general bank charges. Income tax expense (up 43.3%) rose more rapidly than the net profit, both because tax-free capital gains were achieved on financial fixed assets (cf. Belpex) in and due to an increased taxable profit in (for example due to higher OLOs) and taxes on the efficiency gains made in both and at the marginal rate of 33,99%. Consolidated IFRS profit after income tax rose by 11,7% from 94.6 million in to million in due to the following items 2 : 1. increase in regulated profit due to high OLOs ( million); 2. increased additional savings and revenue ( million); 3. court ruling on the CREG decision regarding 2009 decision of CREG on regulated balances having an influence on and 3 ; (- 1.7 million) 1 IAS 19: Annual recalculation of recoverable costs in relation to future retirement obligations. 2 Items 1-5 relate to the regulatory framework in Belgium. 3

4 4. absence of the costs pertaining to the capital increase for acquisition of 50Hertz minus costs for Eurogrid International (+ 6.1 million); 5. absence of the capital gains (60%) on the sale of and deconsolidation of Belpex in (- 5.1 million); 6. decrease in IFRS adjustments in compared to (- 0.3 million). Total assets decreased slightly (by 1%) to 4,473.8 million, while the net financial debt went up 2.6% or 62.9 million, primarily as a result of an increase in working capital due to repayment of the outstanding tariff surpluses. Operational Consumption measured on the Elia grid fell by 3.7% from 86.6 TWh in to 83.4 TWh in, primarily due to a gradual slowdown in economic activity as the year went on. Whereas there was only a limited decrease for industrial customers directly connected to the Elia grid (down 0.5%), distribution system operators (SMEs and residential customers) noted a fall of 5.1%, as a result for example of a sharp increase in generation from wind and solar sources in the distribution systems. Notice however that deviations between budgeted and actual volumes do not affect the net result. These differences are booked in the regulated accounts and passed on to the next tariff period. In, Belgium was a net importer of 2.61 TWh, significantly more than the 0.5 TWh of net imports in, with the biggest share coming from France. The total electricity flows between Belgium and its neighbours dropped by 1.3% to TWh. As in previous years, security of supply remained at a very high level in, with an average interruption frequency on the Elia grid of 0.09 (compared with 0.11 in ) per customer and an average interruption time (AIT) of 2 minutes and 19 seconds per customer, for an average operational reliability better than %. Investments A net sum of million was invested, mainly in upgrading high-voltage substations and laying highvoltage cables. For instance, the high-voltage substations at Bruegel (380 kv), Seraing (220 kv), Bruges (150 kv), Ruien (150 kv), Monceau (150 kv), Schaerbeek (150 kv), Zurenborg (150 kv), Wijgmaal (150 kv), Machelen (150 kv) and Gouy (150 kv) were upgraded, decontaminated and/or renovated. The highvoltage lines between Harmignies and Monceau (70 kv) and between Tihange and Gramme (150 kv) were renovated and underground cables were laid between Basse-Wavre and Leuven (36 kv), Zeebrugge and Blauwe Toren (150 kv), Brecht and Rijkevorsel (150 kv), and Mechelen and Muizen (70 kv). In addition, Fluxys was connected to the 220-kV Berneau substation and a piece of land was bought in Rixensart. Other important projects currently being studied are the Stevin, Brabo, Nemo and Alegro projects. The Stevin project, which is line in with European, federal and Flemish energy and climate policy, relates to the development of a 380-kV connection from Eeklo to the Belgian coast to link up with the offshore wind farms (2,000 MW) in the North Sea, as well as a possible connection with the United Kingdom (Nemo). The Brabo project concerns the power links in the Port of Antwerp and the improvement of the security of supply in the region in the long term. The Alegro project regards the development of the first direct-current (DC) link between Belgium and Germany. 1.B. Segment reporting for 50Hertz Transmission (Germany) The table hereafter shows the results of 50Hertz Transmission s transmission system operator activities in Germany as per International Financial Reporting Standards (IFRS). The results of 50Hertz Transmission for, consolidated at Eurogrid International level (60% proportional consolidation), include the entire 12 months for the first time, in contrast with the figures, which reflected only the period from June to December (inclusive). Consequently, the figures are best compared to the 12-month pro forma figures for (last column) compiled in accordance with International Financial Reporting Standards (IFRS). 3 In a decision of 25 June relating to 2009, CREG (federal regulator) indicated that it did not agree with certain aspects of the results. Elia contested several provisions of this decision before the Court of Appeal. The Court of Appeal s final decision of 31 May was factored into the figures for. Elia received CREG s final decision with regard to financial year on 17 February In line with the decision of the Court of Appeal regarding 2009 the federal regulator has decided that the obtained efficiency gains had, according to the Royal Decree of 8 June 2007, to be taxed at the marginal rate of 33,99%. 4 Including IFRS adjustments for capitalisation of software (IAS 23 (borrowing costs) and IFRIC 18 (transfers of assets to customers with customer contributions to grid connections are fully recognised in IFRS as revenue), this gives million. 4

5 Results 50Hertz Transmission (Germany) (million ) 60% proportional consolidation (12 months) (7 months) Difference (%) (12 months) PRO FORMA Revenue % REBITDA % EBITDA % Operating profit (REBIT) % 85.2 Operating profit, including non-recurring items (EBIT) % Finance result (11.0) (10.5) 4.8% (16.4) Income taxes (13.5) (13.2) 2.3% (23.7) Basic earnings, including non-recurring items, attributable to the Owners of the Company % Basic earnings, excluding non-recurring items, attributable to the Owners of the Company % 45.0 Balance sheet (in million ) Difference (%) Total assets 1, , % 1,386.8 Net financial debt % EBITDA = EBIT + depreciation / amortization + changes in provisions REBITDA = recurring EBITDA (excluding one-off items) Financial (IFRS) 50Hertz Transmission s revenue remained fairly stable compared to the same period last year. Its revenue is described in more detail in the table below. Detail revenue (in million ) PRO FORMA Difference (%) Vertical grid revenues % Horizontal grid revenues % Ancillary services revenues % Other revenues % Subtotal revenues % Deviations from approved budget (settlement 0.5 (31.1) n.r. mechanism) Total revenue % Vertical grid revenue pertains to the use of the 50Hertz grid. The 3.7% downturn is a result of lower volumes drawn from the grid mainly as a result of a larger share of decentralised generation. Horizontal grid revenue pertains to revenue for the use of the sea cable between Germany and Denmark (Kontek cable) as well as all revenue from auctioning off transmission capacity on the border with the Czech Republic, which also connects the 50 Hertz grid with TenneT Germany. The 26.9% downturn is due mainly to lower price differences between Denmark (Nord Pool Spot) and Germany (EPEX Spot) thanks to the market coupling with Benelux, Germany and France. Ancillary services revenue is comparable with that of Elia and concerns mainly passing on to grid users costs (booking and balancing costs) that 50 Hertz has to incur in order to be able to provide a continuous balance on the grid. This revenue fell significantly due to ongoing optimisation of system control between the four German TSOs and due to the fact that the revenue from the EEG 5 imbalances is allocated directly to EEG activity. Other revenue pertains primarily to telecom revenue, subsidies, capitalised costs of own works, technical services and expertise to third parties and contributions from customers. The sharp rise is the result of a one-off EEG bonus of 11.4 million. Owing to the acquisition of 50Hertz Transmission, the corresponding purchase price has been recorded in the financial statement of. Under IFRS a goodwill allocation or a gain on bargain purchase has been made with the help of a Purchase Price Allocation or PPA. In a PPA, all property, debts and (conditional) 5 EEG refers to the German subsidy mechanism for renewable energy, where the transmission system operator is required to pay the feed-in tariff to the producer of renewable energy and to sell that energy on the German energy exchange. The difference between the feed-in and sale price is offset via a monthly fee approved by the government. The entire mechanism is neutral in terms of net profit for 50Hertz. 5

6 services to be identified are valued at fair value. This PPA exercise was carried out for Eurogrid GmbH (German financing and acquisition structure above 50Hertz Transmission), yielding Eurogrid GmbH a oneoff and definite income (gain on bargain purchase) of million ( million for 60%). The absence of this one-off profit in explains the sharp drop compared to in EBITDA, EBIT and net profit, including non-recurring items. In it became apparent that no further modifications are needed for the PPA. The drop in REBITDA and REBIT is mainly due to one-off corrections in ( 5.5 million), the absence of one-off auction revenue booked in ( 9.6 million) and higher personnel and maintenance costs ( 9.6 million). The net finance expenses were positively influenced by more revenue from surplus cash (strong improvement in cash position due to a drop in working capital for EEG) as well as lower general bank costs. The net profit (excluding non-recurring topics) decreased in line with the lower operating profit. The net financial debt consists of a 500 million 10-year Eurobond issued in October and a cash position of 355 million, of which 43.8 million is related to EEG activities. Of these amounts, 60% has been consolidated. Operational In a net volume of 59 TWh was drawn off from the 50Hertz grid. The net offtake of electricity was 6.3% lower than during the same period last year (63 TWh). 50Hertz imported 16.3 TWh of electricity in (17.8 TWh in ), mainly from the Czech Republic and TenneT Germany, and exported 34.4 TWh (29.4 TWh in ), mainly to Poland and TenneT Germany. As a result, net exports of electricity were up 56% from 11.6 TWh to 18.1 TWh. The maximum offtake within the 50Hertz grid was 10,162 MW in. This is 28% less than the maximum offtake in (14,058 MW), a result of additional decentralised generation, mainly wind and solar, connected to distribution grids. Investments To meet grid users' requirements, 50Hertz Transmission invested million in, up 37% compared to the million invested in. The most significant onshore investments pertain to the South-West Coupling Line ( 20.3 million), the Uckermark Line ( 10.3 million), the expansion of the Wolmirstedt substation ( 15.7 million), investments in the new transmission control centre ( 6.4 million) and the construction of a new 380/110 kv substation in North Freiberg ( 5.7 million). Via 50Hertz subsidiary Offshore investments were mainly made in a connection to the Baltic 1 ( 30.1 million) and Baltic 2 ( 95 million) offshore wind farm in the Baltic Sea. 2. Significant events in New electricity legislation in Belgium and Germany with positive results for Elia and 50Hertz The new electricity law was published in the Belgian Official Gazette (Belgisch Staatsblad/Moniteur belge) on 11 January 2012, amending the law of 29 April 1999 on the organisation of the electricity market. The law transposes into Belgian law the third European Electricity Directive. It also transposes the directive on promoting renewable energy sources and makes sweeping changes to current federal legislation. On the whole, it bolsters the rules ensuring that the system operator is independent of generators and suppliers, inter alia by opting for the Full Ownership Unbundling model. It reviews the rules on determining tariffs and gives CREG greater responsibility in terms of control over the operation of the Belgian electricity market in general, and Elia's activities in particular. Accordingly, Elia's role as transmission system operator has also expanded to include the future Belgian offshore grid in the North Sea. Germany approved on 8 July a broad legislative package to accelerate the transformation of the electricity business based on three core pillars relevant for the transmission business: - focus on speeding up development of renewables and the phasing out of nuclear power, - measures speeding up grid development and - measures fostering security of supply. 6 Including IFRS adjustments for software capitalisation, IAS 23 (capitalisation of borrowing costs) and IFRIC 18, this yields million. 6

7 On the same date the Third EU Energy Directive was also transposed into national law. This so-called "Energiewende" strengthens the role of TSOs and enhances the framework allowing for tackling the necessary investments. The German regulator has only slightly lowered the current RoE (fixing it at 9.05% before corporate tax for the next regulatory period despite decreasing capital market indexes in Germany). This decision confirms the evolution towards a more attractive regulation for transmission system operators. BeNetzA, also made a proposal to suppress the two years time lag to recover major grid costs positions, and worked out a compromise on the handling of budgets for grid investments. Both evolutions are awaited for All those improvements of the regulatory regime in Germany will put TSOs in the right position to successfully contribute in the next decade to the Energiewende. Transmission tariffs for approved in Belgium The Commission for the Regulation of Electricity and Gas (CREG) approved the second proposal submitted by Elia in accordance with the methodology established by the regulator in late November for the period from 2012 to 2015 (inclusive). While the costs linked directly to the management of the company have risen slightly, there has been an increase in costs as a result of external factors, specifically: inflation, falling income from auctions of transmission capacity with neighbouring countries, rising demand for control energy by the growing share of energy sources of a variable nature, taxes or subsidies and the absence of tariff surpluses from the past, compared to the first tariff period. By way of comparison: for a family that consumes 3,500 kwh per year, the transmission cost portion in the price of electricity accounting for 4% of the total price will rise from to per year. Fixed tariffs for four years also include two incentives, one for efficiency improvements (as in 2008-) and one for replacement investments, ensuring visibility and stability. Jacques Vandermeiren future general manager and chairman of the Executive Committee On 24 November the Board of Directors of Elia approved the appointment of Jacques Vandermeiren, Chief Corporate Officer and Vice Chairman of the Executive Committee, as the future general manager and chairman of the Executive Committee of Elia. Jacques Vandermeiren will take over from Daniel Dobbeni in the second half of Elia will continue benefiting from Daniel Dobbeni's expertise in various areas, including the management of shareholdings abroad and Elia's ongoing European and international development. Federal development plan for approved The federal development plan for for the electricity transmission system, submitted by Elia, was approved by the minister for energy following a public consultation on the plan and its accompanying environmental impact assessment. Elia sets out its vision of the future offshore grid Elia has developed plans for a meshed offshore grid in the North Sea, in dialogue with project developers for wind farms off the Belgian coast. The offshore grid will be built in stages, in parallel with the construction of seven wind farm concessions and may yield results as early as It will also be the transition substation for a future connection to an international platform. This offshore grid will offer multiple benefits in terms of reliability, optimisation of investments and fewer subsea cables running to the onshore grid. The cost of the plan is currently being assessed and is therefore not in the approved investment budget for the tariffs. Elia, RTE International and Tractebel Engineering sign an engineering consultancy contract with SEC A consortium comprising Elia, RTE International and Tractebel Engineering signed a framework contract with Saudi Electricity Company (SEC) to provide engineering consultancy services for the SEC Transmission Business Unit. These services encompass asset management and asset maintenance services, maintenance practices, asset performance management, grid system analysis and training practices. German TSOs publish renewable capacities until 2016 German transmission system operators 50Hertz, Amprion, ENBW Transportnetze and TenneT published their medium-term renewable energy capacity forecasts for Germany. It is an estimated 94 gigawatt (GW) in 2016, of which around 91% from wind and solar (around 44 GW for solar and 42 GW for wind). Based on an output estimated at 101 TWh in 2016, compensation for the operators could be as much as 19 billion. 7

8 Additional steps taken towards integrating European electricity markets On 21 September, ENTSO-E (European Network of Transmission System Operators for Electricity) and Europex (Association of European Energy Exchanges) submitted a joint plan to the European Commission and ACER (Agency for the Cooperation of Energy Regulators) on how important steps can be taken in the near term towards further integrating the European day-ahead and intraday markets. In addition, the transmission system operators in the Central West Europe region (CWE) joined forces with their counterparts from Switzerland and the Central South Europe region (CSE: Germany, France, Greece, Italy, Austria and Slovenia) to establish a set of harmonised transmission capacity rules. In late November, they obtained authorisation from their respective national regulators to organise, on that basis, the auction of transmission capacity for 2012 on the 12 borders within this zone. Since 5 December the use of phase shifters in the Central West Europe grid has been coordinated between Elia, RTE, TenneT BV, TenneT GmbH and Amprion, and the Coreso and SSC coordination centres. The Elia grid currently has four phase shifters used to better dfistribute and manage cross-border energy flows. This coordinated approach will optimise flows within the CWE region, thus promoting security of supply. 3. Important events after On Friday 23 December, the Brussels Court of First Instance ruled in favour of Elia in its tax dispute 7 with the Belgian tax authorities. As a result of the ruling, the tax authorities must reimburse Elia million, consisting of 80.2 million in taxes that were paid twice and which therefore must be reimbursed with 100% certainty, 5.1 million in prepayments, 8.5 million in administrative tax increase and 24.6 million in interest. However, the tax authorities lodged an appeal on 6 February 2012, thus suspending the ruling by the Court of First Instance. The Court of Appeal is not expected to rule on the case until 2014 at the earliest. 4. Outlook Results for 2012 The Elia Group is looking forward confidently to However, as the Belgian result for 2012 depends on parameters which will be known (including the inflation figure for December 2012) or which can be calculated (including the Belgian 10-year rate, the beta factor of the Elia share and the total Eurogrid/50Hertz investment) at the end of 2012, the Elia Group cannot make any concrete profit forecasts. Investments in 2012 Elia Transmission expects to invest around million in the Belgian high-voltage grid in 2012, while 50Hertz Transmission has an investment budget for 2012 of 231 million, of which 123 million for offshore connections (for 60% for the Elia Group). In addition, the Elia Group is also taking part in the joint research effort into a major grid in the North Sea and Baltic Sea to interconnect multiple countries and wind farms. Other research projects under way are RGI (Renewables Grid Initiative) and the European Twenties project, both of which aim to promote the integration of renewable energy in power grids. 5. Progress of the work carried out by the joint statutory auditors The joint statutory auditors Ernst & Young Bedrijfsrevisoren/Réviseurs d Entreprises represented by Mr Marnix Van Dooren and Klynveld Peat Marwick Goerdeler Bedrijfrevisoren represented by Mr Alexis Palm, have confirmed that the audit procedures, which have been meticulously carried out, have not revealed any material adjustments which would have to be made to the accounting data included in the present report. However, the joint auditors want to draw the attention to the uncertainties resulting from the tariff regulation mechanisms to be approved by the competent authorities, and resulting from the outcome of the tax audit as described in the annual report. 7 Elia's tariffs are based on estimated income and costs as well as budgeted volumes. At the end of each tariff period, this results in tariff surpluses or deficits that must be factored into future tariffs. However, in 2008 the tax authorities ruled that tariff surpluses from the past ( ) should be taxed immediately while Elia, in consultation with the regulator, considered this to be a debt in respect of future tariffs. All such tariff surpluses have actually been returned to consumers since the end of. 8

9 6. Financial calendar for 2012 Publication of Annual Report early April 2012 Annual General Meeting` 15 May 2012 Update Q May 2012 Payment of dividend for 30 May 2012 Publication of the 2012 half-yearly results 30 August 2012 Update Q November 2012 About Elia: Elia is the Belgian transmission system operator, transmitting electricity efficiently, reliably and securely from producers to distribution system operators and major industrial users. Elia is responsible for importing and exporting electricity from and to neighbouring countries. Elia owns the entire Belgian very high voltage grid (150 to 380 kv) and some 94% (ownership and user rights) of the Belgian high-voltage grid (30 to 70 kv). The Elia grid comprises 5,608 km of overhead lines and 2,775 km of underground connections and is a key link between electricity markets in northern and southern Europe. It also links Belgian producers and consumers. Belgium's recent investment in interconnection capacity with its neighbours makes it one of the most open and interconnected grids in Europe. In Elia expanded its activities in Europe and, following its acquisition of German TSO 50Hertz and in cooperation with Industry Funds Management (IFM), is now one of the top five transmission system operators in Europe. For further information, please contact Elia: Media: Lise Mulpas lise.mulpas@elia.be Axelle Pollet axelle.pollet@elia.be Investor relations: Bert Maes bert.maes@elia.be Website: This press release and the annexes are available on ANNEXES (Tables with key figures in million) Consolidated statement of financial position ( ) Consolidated income statement ( ) Consolidated statement of comprehensive income ( ) Consolidated statement of changes in equity Consolidated statement of cash flows ( and ) Segment reporting reconciliation ( ) Gain on bargain purchase ( ) 9

10 ANNEXES: 1. Financial reporting a. Consolidated statement of financial position ( ) (in million ) Assets Non-current assets 5, ,994.1 Property, plant and equipment 3, ,010.9 Intangible assets 1, ,751.1 Trade and other receivables Investments in equity-accounted investees Other financial assets (including derivatives) Deferred tax assets Current assets Inventories Trade and other receivables Income tax receivable Cash and cash equivalents Deferred charges and accrued revenues Total assets 5, ,904.0 Equity and liabilities Equity 2, ,007.2 Equity attributable to owners of the Company 2, ,007.2 Share capital 1, ,500.6 Share premium Reserves Hedging reserve (23.3) (20.7) Retained earnings Non-controlling interest Non-controlling interest Non-current liabilities 3, ,211.0 Loans and borrowings 2, ,917.3 Employee benefits Derivatives Provisions Deferred tax liabilities Other liabilities Current liabilities Loans and borrowings Provisions Trade and other payables Income tax payables Accruals and deferred income Total equity and liabilities 5, ,

11 b. Consolidated income statement ( ) (in million ) Continuing operations Revenue 1, Raw materials, consumables and goods for resale (5.9) (5.9) Gross profit 1, Other income Services and other goods (638.4) (457.2) Personnel expenses (158.4) (133.9) Depreciation, amortization, impairment and changes in provisions (140.9) (127.5) Other expenses (26.8) (31.1) Results from operating activities, before non-recurring items (REBIT) Gain on bargain purchase Non-recurring services and other goods 0.0 (8.0) Results from operating activities (EBIT) Net finance costs (128.6) (123.2) Finance income Finance costs (142.8) (145.0) Share of profit of equity accounted investees (net of income tax) 1.4 (1.2) Profit before income tax Income tax expense (43.3) (34.0) Profit from continuing operations Profit for the period, Profit attributable to: Owners of the Company Non-controlling interest Profit for the period Earnings per share ( ) Basic earnings per share Diluted earnings per share

12 c. Consolidated statement of comprehensive income ( ) (in million ) Profit for the period Other comprehensive income Effective portion of changes in fair value of cash flow hedges (3.9) (3.1) Tax on effective portion of changes in fair value of cash flow hedges Defined benefit plan actuarial gains and losses (16.3) 25.9 Tax on defined benefit plan actuarial gains and losses 5.5 (8.8) Exchange differences on translation of foreign operations Other comprehensive income for the period, net of income tax (13.3) 15.1 Total comprehensive income for the period Profit attributable to: Owners of the Company Non-controlling interest 0,0 0,3 Total comprehensive income for the period

13 d. Consolidated statement of changes in equity ( ) (in million ) Share capital Share premium Hedging reserve Retained earnings Total Non controlling interests Total equity Balance at 1 January 1, (18.7) , ,367.1 Profit for the period Other comprehensive income (2.0) Total comprehensive income (2.0) Retained earnings Eurogrid GmbH at acquisition date (1.6) (1.6) (1.6) Shares issued Costs of shares issued (6.4) (6.4) (6.4) Deconsolidation non controlling interest 0.0 (2.0) (2.0) Dividends (66.6) (66.6) (66.6) Balance at 1, (20.7) , ,007.2 Balance at 1 January 1, (20.7) , ,007.2 Profit for the period Other comprehensive income (2.5) (10.8) (13.3) (13.3) Total comprehensive income (2.5) Dividends (84.5) (84.5) (84.5) Balance at 1, (23.2) , ,

14 e. Consolidated statement of cash flows ( ) (in million ) Cash flows from operating activities Profit for the period Adjustments for: Net finance costs Income tax expense Profit or loss of equity accounted investees, net of tax (1.4) 1.2 Depreciation of property, plant and equipment and amortisation of intangible assets Gain on sale of property, plant and equipment and intangible assets Impairment losses of current assets Change in provisions (25.3) (2.6) Change in fair value of derivatives Change in deferred taxes (15.3) 17.4 Changes in fair value of financial assets through profit or loss (0.2) 3.3 Change in non-cash items Gain on bargain purchase 0.0 (286.5) Cash flow from operating activities Change in inventories (2.3) 0.3 Change in trade and other receivables (43.0) Change in other current assets 1.0 (12.7) Change in trade and other payables (53.4) Change in other current liabilities (42.3) 60.1 Changes in working capital Interest paid (139.6) (135.7) Income tax paid (49.5) (19.9) Net cash from operating activities Cash flows from investing activities Acquisition of property, plant and equipment and intangible assets (288.3) (199.5) Acquisition of subsidiary net of cash acquired 0.0 (278.8) Acquisition of equity accounted investees 0.0 (21.2) Acquisition of investment (0.8) (0.0) Proceeds from sales of investments Interest received Net cash used in investing activities (281.9) (488.6) Cash flow from financing activities Proceeds from issue share capital Expenses related to issue share capital 0.0 (6.5) Dividends paid (-) (84.5) (66.6) Repayment of borrowings (-) 0.0 (210.0) Proceeds from withdrawal borrowings (+) Non-controlling interest 0.0 (2.0) Net cash flow from (used in) financing activities (84.5) Net increase (decrease) in cash and cash equivalents Cash & Cash equivalents at 1 January Cash & Cash equivalents at Net variations in cash & cash equivalents

15 f. Segment reporting - reconciliation ( ) Consolidated results (million ) 31 December Elia Transmissi on (Belgium) 50Hertz Transmission (Germany) Consolidation entries 31 December Elia Group Revenue (1.1) 1,278.4 Depreciation, amortization, impairment and changes in provisions (102.3) (38.6) 0.0 (140.9) REBITDA EBITDA Operating profit (REBIT) Operating profit, including non-recurring items (EBIT) Finance income Finance costs (128.2) (14.6) 0.0 (142.8) Income taxes (29.8) (13.5) 0.0 (43.3) Basic earnings, including non-recurring items, attributable to the Owners of the Company Basic earnings, excluding non-recurring items, attributable to the Owners of the Company Balance sheet (in million ) December December Total assets 4.473, ,3 (0,3) 5.843,8 Capital expenditures 118,1 152,3 0,0 270,4 Net financial debt 2.448,1 84,8 0, ,9 g. Gain on bargain purchase ( 60% Gain from a bargain purchase million million Parent's company value of investment (1) Equity 50Hertz per 31/05/ (2) Gain on bargain purchase at 31/12/ = [(2)-(1)] Acquisition costs 50Hertz Total non-recurring items