Elia Group NV/SA — Earnings Release 2018

Nov 30, 2018

Interim Statement: Q3 2018

HIGHLIGHTS

• Elia successfully completes long-term financing for the acquisition of an additional 20% stake in Eurogrid
• Elia welcomes German Bank KfW as new shareholder in Eurogrid
• Elia, SettleMint and Actility launch one of Europe's first blockchain pilot projects in the energy sector
• 50Hertz puts CompactLine into operation
• Financial outlook for 2018 slightly raised

Elia successfully completes long-term financing for the acquisition of an additional 20% stake in Eurogrid

In August, Elia successfully launched a EUR 300 million 10-year senior bond and a EUR 700 million perpetual hybrid bond to refinance a bridge loan for the acquisition of an additional 20% stake in Eurogrid International. Owing to strong investor interest, with book-building completed in just a few hours, the bonds were significantly oversubscribed, leading to an annual coupon of 1.50% for the senior bond and a coupon of 2.75% for the hybrid bond¹ .

Elia welcomes German Bank KfW as new shareholder in Eurogrid

In August, Elia completed the transactions linked to the acquisition of the remaining 20% stake in Eurogrid International held by IFM Global Infrastructure Fund and the immediate sale of this stake to the German stateowned bank Kreditanstalt für Wiederaufbau (KfW). The conclusion of these transactions saw KfW replacing IFM as the second shareholder in Eurogrid. The operation will foster Belgian-German cooperation regarding critical grid infrastructure.

Elia, SettleMint and Actility launch one of Europe's first blockchain pilot projects in the energy sector

Elia has launched a pilot project to analyse potential applications of blockchain technology in the energy sector. The aim is to confirm blockchain's suitability for automating a number of processes related to activating flexible reserves and develop a decentralised flexibility management solution.

The increase in renewable energy generation is making it increasingly difficult for transmission system operators to guarantee that generation and consumption are balanced at all times. Power derived from renewables fluctuates constantly, so flexible reserves that can be activated swiftly (like batteries, demand management via heat pumps, etc.) are needed to ensure a steady balance. Elia is exploring the opportunities offered by blockchain technology as a payment system to address the business side of such complex, rapid transactions. The pilot project, conducted together with SettleMint and Actility, will last three months.

¹ Elia books these lending costs as non-regulated.

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50Hertz puts CompactLine into operation

After 11 months of construction, the CompactLine is now transmitting electricity. The CompactLine is a newly designed system consisting of masts and rope suspensions that is far more compact than a conventional extrahigh-voltage overhead line. In 2013, a research consortium led by 50Hertz started developing the CompactLine, which has since been implemented as a pilot line in Jessen, Saxony-Anhalt, on behalf of 50Hertz over a length of approximately 2 km. With a route width of 55 m and a mast height of 32 m, the CompactLine fits better into the landscape than conventional overhead lines, without compromising key functionalities.

Financial outlook for 2018 slightly raised

In Belgium, the implementation of our investment plan is progressing well, so we retain a positive outlook for our 2018 results, anticipating a regulated return slightly above that of 2017 assuming a stable trend in the Belgian 10 year OLO. Strategic interconnection projects like Brabo, ALEGrO and Nemo remain on track, with investments in Belgium expected to total around EUR 630 million in 2018 as a whole.

Positive results are also forecasted in Germany, and we remain confident about our ability to deliver a return slightly higher than the targeted 10-12% range. The realisation of the investment programme, which is always prone to a certain level of external risk, is progressing well with investments expected to total around EUR 470 million in 2018.

Financial calendar

Publication of 2018 annual results 22 February 2019 Publication of 2018 Annual Report early April 2019 General Meeting of Shareholders 2018 14 May 2019

About the Elia Group

ONE OF EUROPE'S TOP FIVE PLAYERS

The Elia Group is active in electricity transmission. We ensure that production and consumption are balanced around the clock, supplying 30 million end users with electricity. With subsidiaries in Belgium (Elia) and north-west Germany (50Hertz), we operate 18,600 km of high-voltage connections. As such, our group is one of Europe's top 5. With a reliability level of 99.998%, we give society a robust power grid, which is important for socio-economic prosperity. We also aspire to be a catalyst for a successful energy transition towards a reliable, sustainable and affordable energy system.

WE MAKE THE ENERGY TRANSITION HAPPEN

By expanding international high-voltage connections and integrating ever-increasing amounts of renewable energy production, the Elia Group promotes both the integration of the European energy market and the decarbonisation of our society. The Elia Group is also innovating its operational systems and developing market products so that new technologies and market parties can access our grid, thus making the energy transition happen.

Headquarters

Elia System Operator Boulevard de l'Empereur 20 B-1000 Brussels – Belgium

50Hertz GmbH Heidestraße 2 D-10557 Berlin – Germany

IN THE INTEREST OF SOCIETY

As a key player in the energy system, the Elia Group is committed to working in the interest of society. We respond to the rapidly changing energy mix, i.e. the increase in renewable energy, and constantly adapt our transmission grid. We also ensure that investments are made on time and within budget, with a maximum focus on safety. When we carry out our projects, we manage stakeholders proactively by establishing two-way communication with all affected parties very early on in the development process. We also offer our expertise to our sector and relevant authorities to build the energy system of the future.

INTERNATIONAL FOCUS

In addition to its activities as a transmission system operator, the Elia Group provides various consulting services to international customers through its subsidiary Elia Grid International (EGI). Elia is also part of the Nemo Link consortium that is building the first subsea electrical interconnector between Belgium and the UK.

The Group operates under the legal entity Elia System Operator, a listed company whose core shareholder is the municipal holding company Publi-T.

www.elia.be/www.eliagroup.eu