1

FY 2008 consolidated results

Brussels

February 20th, 2009

2

Disclaimer• This presentation is only provided for general information purpose about

Elia and its activities. The included statements are neither reported results nor other historical information. They are not provided to serve as the basis for any evaluation of Elia, and cannot be binding and/or enforceable upon Elia.

• As forward-looking statements, they are subject to assumptions, risk and uncertainties, actual future results may differ from those expressed in or implied by such statements.

• Although Elia uses reasonable cares to present information which is up-to-date to the best of Elia's knowledge, Elia makes no representation or warranty whatsoever as to the adequacy, accuracy, completeness or correctness of such information.

• Elia will not be liable for any consequences arising from or related to the use or interpretation of the information contained or absent in this presentation.

3

Summary

Highlights 2008

Financials 2008

Outlook 2009

Agenda

4

Summary

• Highlights 2008

- Results in line with new regulation: higher OLO, incentive, bonus ‘07

- Slight decrease of yearly consumption, mostly due to economic crisis

- Full realisation of investment plan; excellent network reliability

- Amongst the lowest tariffs in Europe for the 6th year in a row

- Growing volume traded on Belpex

- European market in progress: CASC, Coreso, ENTSO-E

- First consulting contracts

• Financials 2008- Dividend increased to € 1,37 a share

• Outlook 2009- Net profit- Capex

5

Summary

Highlights 2008

Financials 2008

Outlook 2009

Agenda

6

Yearly Energy consumption as seen from Elia’s network decreased slightly to 88 TWh(88,9 TWh in 2007)

Main reasons

• Economic crisis during Q4(mainly industrial customers)

• Increasing local generation at customer sites

• Increasing generation from renewable sources at distribution level

Net import level increased (mainly from the Netherlands side) with 58,2% to 10,6 TWh (6,7 TWh in 2007)

No impact on regulated profit(except cash management)

1. Energy Consumption in Elia’s balancing zoneConsumption per month

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007

2008

-2000

-1500

-1000

-500

0

500

1000

Imports and exports per month in 2008

Imports from The Netherlands

Exports to The Netherlands

Imports from France

Exports to France

Net Balance

7

Means strong visibility for the cost basis of Elia’s customers Means strong visibility for the cost basis of Elia’s customers

Tariffs for use of the grid and tariffs for ancillary services:comparison 2001 - 2008

0

2

4

6

8

10

12

14

16

2001 2002

(Q4)

2003

(Q2 to

Q4)

2004 2005 2006 2007 2008 2009 2010 2011 2001 2002

(Q4)

2003

(Q2 to

Q4)

2004 2005 2006 2007 2008 2009 2010 2011 2001 2002

(Q4)

2003

(Q2 to

Q4)

2004 2005 2006 2007 2008 2009 2010 2011 2001 2002

(Q4)

2003

(Q2 to

Q4)

2004 2005 2006 2007 2008 2009 2010 2011

On the 380/220/150 kV network At transformer output to the 70/36/30 kV network On the 70/36/30 kV network At transformer output to medium voltage

Annual power System management Ancillary services Loss compensation

2. Fixed tariffs for the period 2008-2001

8

Among the lowest tariffs in Europe

•0

•5

•10

•15

•20

•25

•30• A

ustr

ia

• Bel

giu

m

• Bul

ga

ria

• Cze

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ep

ub

lic

• Den

mar

k E

ast

• Den

mar

k W

est

• Est

on

ia

• Fin

lan

d

• Fra

nce

• Ger

man

y

• Gre

at

Bri

tain

• Gre

ece

• Hun

ga

ry

• Ire

lan

d

• Ita

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• La

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• Lith

ua

nia

• Net

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• Nor

wa

y

• Pol

an

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• Por

tug

al

• Rom

ani

a

• Slo

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Re

p

• Slo

ven

ia

• Spa

in

• Sw

ed

en

• € /

MW

h

•Infrastructure •Losses •System Services •Other regulatory charges

9

• Full realisation of Capex plan 2008

• Excellent reliability of the network

• Focus on internal demand as well as for

• supporting local generation at sites of industrial customers

• facilitation the connection of co-generation and renewables units

Breakdown CAPEX Breakdown CAPEX

Replacements

Driven by internal consumption

Driven by interconnections with neighbours

Driven by import levels & generation localisation

CAPEX 2008€ 161,2 m

44%

3. Investments 2008

48%

33%

9%

10%

10

• Extensions and developments at the port of Antwerp (project BRABO)

High-voltage “Petrol” station in Antwerp commissioned

- improved reliability

- needed by economic development

High-voltage station “Scheldelaan”

- extension for the connection of the cogeneration unit of Exxon

- commissioned in December 2008

Investments of about € 20m

Investments 2008: a few examples

11

• Renovation of 70 kV stations- Angleur and Liberchies- Investment of about € 15m

• Google site- Connection to 150 kV station located in Ghlin Petit

Marais- Investment of about € 3,3m (repaid by client)

• Greenwind- Windfarm of 25 MW (10 times 2,5 MW)- Connection to 70 kV station of Solre-Saint Géry- Investment of about € 0,7m (repaid by client)

• Windvision- Windfarm of 66 MW (11 times 6 MW)- Connection to 70 kV station of Harmignies- Investment of about € 0,6m (repaid by client)

Investments 2008: a few examples

12

• Three phase shifters

- Location Van Eyck & Zandvliet high -voltage station

- Improved control of neighbouring energy flows on the Elia grid for an improved reliability

- Optimisation of transmission capacity with interconnected networks

- Commissioned at the end of 2008

- Investment of € 54 m

Investments 2008: a few examples

13

Total energy exchanges 2008-07

3,005 GWh Netherlands

8,119 GWh

2,039 GWh

France

7,386 GWh

Luxembourg1,518 GWh

1,629GWh

4. Belgium, among the most interconnected countries

2008 2007Direction Exchanged Exchanged Change

F B 7,386 GWh 8,332 GWh -11,4%B F 2,039 GWh 2,322 GWh -12,2%NL B 8,119 GWh 5,266 GWh 54,2%B NL 3,005 GWh 5,084 GWh -40,9%Lux B 1,629 GWh 2,084 GWh -21,8%B Lux 1,518 GWh 1,631 GWh -6,9%Total 23,696 GWh 24,719 GWh -4,1%

YEAR 2008I n MEGAWATT (MW)

South North Total Comment

Maximum capacity allocated to the market 3600 1401 5001 Total is 42 % of peak system load of 12001 MW

Yearly average capacity allocated to the market 2532 1350 3882 Total is 39 % of average system load of 10024 MW

Ex ante guaranteed minimum capacity during line works in France

1600833

(1 day)2433 Total is 24 % of average system load

COMMERCI ALLY AVAI LABLE I MPORT CAPACI TI ES

14

• 32 diversified participants (suppliers, traders, producers) from 10 countries (NL,CH,UK,FR,BE,GE,CZ,SP,IT,DK) at Dec 31st, 2008

• Average daily volume was 30.372 MWh with the following average electricity prices :

• Belix €70,60 MWh (41,85/MWh)

• Belix peak (8am-20pm) €85,18 MWh (53,56/MWh)

• Belix off-peak (20pm-8am)€56,02 MWh (30,13/MWh)

• Record volume of 77.623 MWh on May 3rd, 2008 equals 31% of average Belgian electricity demand

• Market coupling induced an average export volume of 1.816 MWh and an high average import volume of 18.582MWh

• New products : Intraday & Continuous Day ahead market

5. Belgian Power Exchange (Belpex)

15

Volumes BELPEX DAM & Prices BELPEX, POWERNEXT and APX DAM Period: from 21/11/2006 to 31/12/2008

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

2006

11

2006

12

2007

01

2007

02

2007

03

2007

04

2007

05

2007

06

2007

07

2007

08

2007

09

2007

10

2007

11

2007

12

2008

01

2008

02

2008

03

2008

04

2008

05

2008

06

2008

07

2008

08

2008

09

2008

10

2008

11

2008

12

MWh

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

100,00

€/MWhVolume Belpex Price Belpex Price Powernext Price APX

Belpex volume growth since november 06

16

Border Belgian-French border

 

Belgian-

Dutch

border

Constrained Unconstrained

Constrained F ≠ B ≠ NL   F = B ≠ NL

Unconstrained

  F ≠ B = NL   F = B = NL

0,8 %

14,7 %

15,4 %

69,1 %

FR-BE-NE TLC 2008: excellent price convergence

Means more competitive wholesale prices in Belgium Means more competitive wholesale prices in Belgium

17

Elia System Operator

Elia Asset (1)

99.99%

Elia Re 02/2002

HGRT 12/2001

Elia Engineering 12/2003

100% 100%

Licensed System Operator

Network Owner

(1) 1 share Publi-T, 1 share Electrabel

Engineeringconsultancy firm

Captivereinsurancecompany

52,25%shareholderof Powernext

Elia: A Single Economic Unit

24.5%

GDF Suez/ Electrabel

Publi-T Publipart

24,35% 2.54%33.01%

Freefloat

40,1%

6. Update Group structure

Belgianpowerexchange

Belpex 07/2005

60%

CASC-CWE 10/2008

14.3%

Coreso 12/2008

50.0%

4 countries7 TSOsAuctioning

Real timecontrol ofEU flows

18

• Capacity Allocation Service Company for Central-West Europe(Benelux, France and Germany)

• First concrete step towards creation of Europe’s largest regional electricity market

• Equal shareholdership between 7 TSOs : Cegedel Net, Elia, EnBW TNG, E.ON Netz, RTE, RWE TSO, TenneT

• Incorporated in Luxembourg on Sep 9th, 2008

• Joint cross-border service company acting as a single auction office

• First joint auctioning of year and month capacities on the common borders between the five countries was held on Nov 28th, 2009

• From Spring 2009, also execution of auctions of daily capacities for borders without market coupling

CASC - CWE

19

CORESO

• Coordination of Electricity System Operators

• Second concrete step towards creation of Europe’s largest regional electricity market

• Joint venture, currently between RTE and Elia, based on equal shareholdership and partnership

• Incorporated in Brussels on Dec 19th, 2008; start of operation foreseen on Feb 16th, 2009

• The first regional technical coordination centre to be shared by several TSOs in the CWE region

• National Grid expected to join as full member

• Interest from Vattenfall Europe Transmission

• The centre will develop forecast management of electricity transits within the CWE region and will monitor these flows in real time around the clock

20

7. First contracts with third parties

• Third party services

Industrial clients

Distribution System Operators

• Consulting

Marocco,

Tunesia,

C-Power

Gulf Cooperation Council Interconnection Authority

21

Grid services47%

Corporate 31%

Customers & Market

5%

Elia Engineering

10%

Transmission7%

Experienced employees throughout Elia’s organisation

Number of Employees at 31/12/08 : 1,231 (FTE : 1125)

Average length of service in Elia:

14 years

Average age of workforce:40 years

8. Update Personnel

22

Summary

Highlights 2008

Financials 2008

Outlook 2009

Agenda

23

Implementation of “controllable – non controllable” costs & revenuesImplementation of “controllable – non controllable” costs & revenues

Charges Revenues

Tariff

Non Tariff

Non Controllable Costs (NC)

Net profit

Controllable Costs ‘(C)

CNC

Charges Revenues

Net profit

Costs Tariff

Non Tariff

(1)

(2)

(1) Mainly consists of purchases of materials, services and other goods & remuneration except the ancillary services & pension costs for retired employees

(2) Mainly consists of Telecom services, Third party services, surplus value on sale fixed assets and insurance claims

PAST TODAY

4-year fixed tariff system

24

Reclassify costs, revenues => controllable & non-controllableReclassify costs, revenues => controllable & non-controllable

Charges Revenues

Tariff

Non Tariff

Non Controllable Costs (NC)

Net profit

Controllable Costs ‘(C)

CNC

NC

C

Net profit

Tariff

(1) Mainly consists of purchases of materials, services and other goods & remuneration except the ancillary services & pension costs for retired employees

(2) Mainly consists of Telecom services, Third party services, surplus value on sale fixed assets and insurance claims

(1)

(2)

…with netting of costs & revenues

25

• Regulator approved € 251,3m net controllable costs for 2008 (255,3m CC minus € 4m imposed cost savings)

• Budget Elia : 247,3 mio € Initial budget 255,3

X factor (costsaving) - 4,0

Y factor (potential outperformance)

(1) Controllable non-tariff revenues

€ m

2008 2009 2010 2011

255,3

-4m–6m

-7m -8m

- X = -25m in total

(1)

270,3

255,3260,6

265,3

251,3254,6

258,3262,3

CPI-X (approved)

Budget including CPI

247,3248,6 251,3

254,3 CPI-X-Y (internal budget)

-4m–6m

-7m -8m -X -Y = -50m in total

X – Y Factor (controllable costs)

26

1. Fair remuneration (€ 59m in budget 2008)

• Equity remuneration based on formula

• Deduction over-depreciation of the past (€ 8,2m net) till Q3 2012

2. Decommissioning (€ 14m in budget 2008)

• Goodwill from decommissioning included in tariffs

• Reserved for financing future investments

3. Incentivisation on controllable costs

• Ceiling = same amount as efficiency gain (X-factor)

Composition of net profit

27

Overview of Key 2008 IFRS Figures

ChangeI ncome statement (€ million) 2008 2007 I n %Consolidated turnover 757,3 731,7 3,5%EBITDA (1) 334,1 308,5 8,3%Operating result (EBIT) 237,9 214,7 10,8%Financial result (109,3) (104,0) 5,1%Taxes (27,2) (32,9) -17,3%Consolidated net profit (incl equity m.) 103,1 77,6 32,9%Net profit per share (€) 2,14 1,62 32,3%Dividend per share (€) 1,37 1,30 5,4%Balance sheet (€ million) 31/ 12/ 2008 31/ 12/ 2007Total assets 4.228,1 3.977,9 6,3%Equity 1.348,1 1.338,6 0,7%Net debt 2.370,5 2.196,7 7,9%Equity per share (€) 28,04 27,85 0,7%

Total number of shares (end of period) 48.076.949 48.061.695 0,03%(1) EBITDA = EBIT + depreciation + changes in provisions

I FRS

28

2008 A 2008 EAverage RAB 2007 3.673 3.611Reference equity (33%) 1.212 1.192Cost of equity 5,62% 5,17%Equity reference remuneration (A) 68,1 61,6

Av. equity / Av. assets 35,93% 36,45%Deviation on ref. equity 2,93% 3,45%Equity deviation remuneration 5,14% 4,63%D-factor (B) 5,5 5,8

Over-depreciation (C) -8,2 -8,2

Fair remuneration (A+B+C) 65,5 59,2

Goodwill decommissioning 15,0 14,2Controllable cost incentive 4,4 0,0

Bonus 2007 1,9 0,0

Net profit Belgian GAAP (tariffs) 86,8 73,4

Consolidation Belpex 0,3

I FRS reconciliation 16,0

Net profit I FRS 103,1

Bottom-up Approach of Elia’s P&L in 2008 (EUR m): calculation of net profitBottom-up Approach of Elia’s P&L in 2008 (EUR m): calculation of net profit

677,9

61,2

103,1

654,2

18,2

Charges Revenues

Tariff

Non tariff

Costs

Net profit

(1)

(1) OLO of 4,4414%; Beta of 0,336 and a risk premium of 3,5%(2) Av. Equity =1.319,9 and Av. Assets = 3.673,4(3) OLO of 4,4414 & deviation rate of 70 bp

(2)

(3)

Tariff Shortfall

2008 Profit and Loss

29

Bu

dg

et

Reality

Revenues = 6,4

Bu

dg

et

Reality

Controllable items : Budget <> Reality

Costs = -2

27

2,7

27

0,7

17

,4

23

,8 Total outperformance = € 8,4m

X factor = € 4m Y profit = € 4,4m

First results from increased efficiency

Extra revenues thanks to third party services and first consulting contracts

30

1.348,11.367,9 10,7

(135,9)

72,6 17,8 15,0

31/ 12/ 2008Belgian GAAP

Employee benefits

Regulatory assets

Capitalisation software

Elia Re Others 31/ 12/ 2008IFRS

IFRS Impact on Equity and Net Profit IFRS Impact on Equity and Net Profit as of 31 December 2008as of 31 December 2008

Net

Pro

fit

Eq

uit

y

Reconciliation Be GAAP - IFRS

103,187,1 3,0(5,8)4,12,8(5,6)

17,5

31/ 12/ 2008Belgian GAAP

EmployeeBenefits

RegulatoryAssets

Elia Re CapitalisationSoftware

Deferredtaxes

Other 31/ 12/ 2008IFRS

(1)

(1) Mainly relates to Inventory valuation (€2,6m) and goodwill Bel engineering (€ 6,9m)

31

3.582,4

(91,8) (18,2) 159,6

132,4

Year-end 2007

Depreciation Divestm. &Decommissioning

Capex Change in WCR

Year-end 2008

Evolution 2008 RABEvolution 2008 RAB

Average RAB

3.512 3.673

(1)

(1) Includes € 15 million goodwill decommissioning

Regulated Asset Base 2008

3,764,4

32

44,9

(45,6)

16,1

18,298,8

132,4

20

08

Inventory, trade & all debtors <1 year

Tax receivable, including interests

due

Total Change in WCR

Trade creditors & others

Accrued charges & deferred income

Shortfall 2008

Changes in Working Capital Requirements (EUR m) Changes in Working Capital Requirements (EUR m) (1)(1)

(1)(1) Based on Belgian GAAP accountsBased on Belgian GAAP accounts

Working Capital Requirements

33

Evolution of Costs between 2008 and 2007 (EUR m)Evolution of Costs between 2008 and 2007 (EUR m)

32,927,2

104,0109,3

93,896,2

19,414,0

118,8 114,0

150,8153,7

138,8135,0

2008 2007

Personnel Expenses(mainly pension funds & inflation)

Ancillary services(reserve energy)

Depreciation

Others

Financial charges

Taxes

Raw materials, Services & Other goods

Breakdown Costs

654,2

+4,2%

+2,6%

+5,1%

653,7

+1,9%

-2,7%

-17,3%

-27,8%

34

Breakdown of Non – Tariff Revenues in 2008 and 2007 (EUR m)Breakdown of Non – Tariff Revenues in 2008 and 2007 (EUR m)

-3,13,8

12,313,0

15,816,2

28,2 43,1

2008 2007

Non - Tariff Revenues

Others

Telecom & third party services

Fixed assets own construction capitalised

International revenues(mainly due to lower wholesale price differentials and lower revenues from congestion)

68,1

61,2

-34,6%

(1) In 2007 « others » include € -13m reversal of the regulatory asset as a result of a new collectieve agreement (one-off payment)

(2) In 2008 « others » include the reversal of € 5m related to interests to recover on the tax receivable

(2)

(1)

+2,5%

+5,7%

35

406,7

510,9

20,9

85,6

129,0113,4

32,332,7

2008 2007

Breakdown of Tariff Revenues in 2008 and 2007 (EUR m)Breakdown of Tariff Revenues in 2008 and 2007 (EUR m)

Tariff Revenues

Connection tariffs

Tariffs for ancillary services

Tariffs for grid use

677,9 653,6

-12,1%

0,5 Operational 4,9 Appeal Bonus 20054,5 Settlement Bonus 2006

Tariffs out of previous surpluses

9,9

+25,6%

-75,6%

18,2

Tariff shortfall

36

Bu

dg

et

Reality

Revenues = - 21,4

Tariff = + 1,4B

ud

get

Reality

Bu

dg

et

Reality

Bu

dg

et

Reality

Non controllable items : Budget <> Reality

Net profit = +8,8

Costs = - 10,6

Costs = + 10,6 m

Revenues = - 21,4 m

Net profit = -8,8 m

Tariff = + 1,4 m

Tariff shortfall = 18,2 m

37

Surpluses/I n millions of EUR (Shortages) 2004 2005 2006 2007 2008 2009 2010 2011 Total

Surplus 2003 134,6 25,4 36,4 36,4 36,4 134,6Bonus 2003 3,2 3,2 3,2Used -25,4 -39,6 -36,4 -36,4 -137,8Total 2003 137,8 0,0 0,0 0,0 0,0 0,0Surplus 2004 118,9 28,0 9,8 9,8 23,8 23,8 23,7 118,9Bonus 2004 3,5 3,5 3,5Used -28,0 -13,3 -9,8 -51,1Total 2004 122,4 0,0 0,0 0,0 23,8 23,8 23,7 71,3Surplus 2005 35,1 7,4 27,7 35,1Bonus 2005 2,3 2,3 2,3Surplus 2006 3,8 3,8 3,8Used -7,4 -33,8 -41,2Totaal 2005 41,2 0,0 0,0 0,0Surplus 2006 56,2 5,6 50,6 56,2Malus 2006 1,8 1,8 1,8Used -5,6 -5,6Totaal 2006 58,0 0,0 52,4 52,4

Reversal decided by regulator for period 2008-2011 20,9 22,8 34,0 46,0 123,7Used -20,9 -20,9Subtotal 359,4 102,8Shortage 2007 -0,5 -0,5 -0,5Bonus 05 & 06 -9,4 -9,4 -9,4Totaal 2007 -9,9 -9,9 -9,9Shortage 2008 -18,2 -18,2 -18,2

Total Surplus 331,3 74,7

Overview treatment of surpluses

Overview of allocation and use of total surplusesOverview of allocation and use of total surpluses

(1) To be allocated by CREG in the next regulatory period

(1)(1)

38

883,5 883,5

1000,0 996,8

250350,0

0

500

1.000

1.500

2.000

2.500

31/ 12/ 2008 31/ 12/ 2007

Shareholders' loans EurobondsST bank loans EIB + CP + Accrued interests

Standard & Poor’s rating:

Long Term: A-

Outlook: Stable

Elia benefits from a strong credit ratingElia benefits from a strong credit rating

Financial Debt Position

2.397,7 2.230,1

164,2 99,8

(1) In September 2009, a shareholders’ loan of € 387,7m will be repaid. This loan together with the short bank loans will be refinanced through a new Eurobond to be launched before September

(1)

Unused Credit lines Amount Interest rateas of 31/ 12/ 08 (€ m)

European Investment Bank 65 Euribor + 5 bpCommitted bank loan 50 Euribor + 25 bpUncommitted bank loan 80 To be negotiatedCommercial paper program 188 To be negotiated

€ millions 31/ 12/ 2008 31/ 12/ 2007 Net debt 2.370,4 2.196,7Leverage (D/D+E) 63,7% 62,1%

Net debt / EBITDA 7,1 7,1Average cost of debt 5,15% 4,99%% Fixed of gross debt 70,0% 73,2%

39

Reimbursement schedule till 2022

0

100

200

300

400

500

600

700

800

900

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

MM

€

Eurobond EIB Synatom Publi-Part Dexia ING

Reimbursement schedule till 2022

Publi-Part

The duration of the refinancing of € 800 million in 2009 will take into account the The duration of the refinancing of € 800 million in 2009 will take into account the several other maturity dates; refinancing will be achieved before September 2009several other maturity dates; refinancing will be achieved before September 2009

ING

40

Elia’s dividend policy ensures a steady and growing dividendElia’s dividend policy ensures a steady and growing dividend

Dividend Policy

• Increase in dividend to € 1,37 per share

• Pay-out ratio over 2008 Belgian Gaap result is 75,7% (63,9% under IFRS)

1,27 1,371,301,281,27

75,7%

89,9%

79,3%

91,8%

89,6%

- 0,4

0,1

0,6

1,1

1,6

2,1

2004 2005 2006 2007 2008

In E

UR

70%

75%

80%

85%

90%

Dividend Pay- out ratio

41

Summary

Highlights 2008

Financials 2008

Outlook 2009

Agenda

42

• Capex = €117 m(€157m initially)

• Main reasons:• Reduced energy consumption

due to economic crisis• Delayed projects by industrial

customers• Reduction of financing

requirements

• No impact on regulated profit (ROE remuneration)

Replacements

Driven by internal consumption

Driven by interconnections with neighbours

Driven by renewables & generation localisation

CAPEX 2009€ 117 m

44%

Outlook CAPEX 2009

38%

37%

17%

8%

43

3.764

(92) (17) 117

84

2008 Depreciation Divestm. &Decomm.

Capex Change inWCR

2009

Average RAB

3.673 3.810

(1)

(1) Contains € 14m of goodwill reduction due to decommissioning

3.856

Outlook 2009: RAB

44

CREGAverage RAB 2009 3.810Reference equity (33%) 1.257Cost of equity 5,08%Equity reference remuneration (A) 63,8

Av. equity / Av. RAB 35,12%Deviation on reference equity 2,12%Equity deviation remuneration 4,63%D-factor (B) 3,7

Over-depreciation (C) -8,2

Fair remuneration (A+B+C) 59,3

Goodwill decommissioning 14,2

Controllable cost incentive 0,0

Net profit as set by tariffs 73,5

Determination of net profit 2009 by the regulator (Belgian GAAP)Determination of net profit 2009 by the regulator (Belgian GAAP)

(1)

(1) OLO of 3,9278%; Beta of 0,3301 and a risk premium of 3,5%

(2) OLO of 3,9278% and deviation rate of 70bp

(3) To be recomputed ex-post based on real OLO, real beta, real RAB & Equity, real decommissioning

and real controllable cost savings

(2)

Not available for profit distribution;€14,2 is the estimatedyearly amount for theperiod 2008-2011

=(1)

(2)

(3) = Y

(=1+2+3)

(3)

(3)

(3)

(3)

(3)

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Outlook 2009 : Fair remuneration

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• Major projects investigated pending regulatory approval- 380 kV line towards Belgian coast (off-shore wind energy)- Connection of a future 450 MW power plant in Seneffe- Interconnections with UK, Germany and Luxembourg

• Services To be launched in 2009

• Belpex : launch of Green Certificates Exchange• Coreso : 24h real time control of electricity flows in CWE area• CASC : secondary market for cross-border transmission capacity• ENTSO-E : 42 TSOs out 34 European countries

Contemplated for 2010 and beyond• Market coupling between Benelux – Germany – France

• ActivitiesPursuing « operational excellence »Consulting and services for third parties, partnership

New Projects, Services, Activities

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Questions &

AnswersInvestors Relations – Contact details Bert Maes

Tel: + 32 (0)2/546.72.39Mail: bert.maes@elia.beWebsite: http://www.elia.be