Performance Consistent with 2014 and Continued Investment in National Infrastructure

Highlights:

• Operating Profit – €337 million (€10 million increase on June 2014 excluding exceptional items)
• Capital Investment – €405 million (€45 million decrease on June 2014)
• Dividends – €224 million (including special dividends of €214 million)
• Operating Cost Savings – over €270 million in recurring annual savings achieved since 2010

Profitability

ESB today published its interim financial statements for 2015, reporting operating profit of €337 million, an increase of €10 million on the same period in 2014 (excluding exceptional items). The increase in profits is driven by:

• Improved availability in its generation fleet compared to the same period in 2014,
• Significant storm repair costs incurred during the first half of 2014 which did not recur, and
• Continued cost savings and improvements in other income streams.

The impact of these factors is partly offset by positive fuel hedge contract valuation movements in 2014 which did not reoccur in 2015.

Commenting on the results, ESB’s Chief Executive Pat O’Doherty said, “These results reflect a solid performance in the first half of 2015, while markets continue to be challenging as wholesale electricity prices remain low. ESB continues to deliver value for its customers, its shareholders, and for the Irish economy, while maintaining its financial strength and credit rating.”

Profit after tax was €201 million, an increase of €93 million on the same period in 2014. This reflects the higher operating profit outlined above, in addition to a negative valuation movement on interest rate swaps in the first six months of 2014, which did not recur.

Customers

Electric Ireland, ESB’s supply business, offered lower electricity and gas prices to all its customers during the first half of 2015, and continues to develop innovative product offerings to service a highly competitive market.

Electric Ireland continues to have the highest customer satisfaction ratings (as measured by the CER) and the lowest average disconnection rate among the three main electricity suppliers.

Shareholders

The dividend payment of €214 million in January 2015 completed the special dividend programme of €400 million agreed with the government in 2012. This brings the total dividends paid during the past ten years to almost €1.5 billion.

Irish Economy

ESB invested €320 million in energy infrastructure across the island of Ireland during the first six months of 2015, an increase of more than €100 million compared to the same period in 2014.

Total network connections completed in the first six months of 2015 at 7,750 included a 7% increase on the same period in 2014.

ESB contributes over €2 billion annually to the Irish economy through dividends, investments, taxes and jobs. ESB provides significant employment both directly, with over 7,200 employees, and indirectly through contractors and service providers.

The ESB Interim Results can be found here.

Ends