4.OUR PERFORMANCE

Financial Performance

REGULATED
NETWORKS IBERIA

EBITDA

898M
-9% VS 2016

• In 2017 EDP ceased its gas distribution activities in both Spain and Portugal: (i) in Spain, EDP concluded the sale of Naturgas Energía Distribución; (ii) in Portugal, EDP concluded the sale of its gas distribution assets, alienating its gas distribution networks and solely maintaining the gas supply activity..

• EBITDA from regulated networks fell by 9% YoY (-€92 million), to €898 million in 2017, largely impacted by the deconsolidation of gas distribution in Spain and Portugal and by a €42 million provision booked in electricity distribution in Spain (concerning the lesividad correction), partly offset by tight cost control.

OPERATIONAL PERFORMANCE

• At the end of 2017, the company had around 2 million smart meters installed in all distribution network in Iberia. Portugal had an increase of 83% over the year in the number of smart meters of domestic clients.

• In 2017, for the third consecutive year, levels of electricity distributed registered an increase in Iberia. Despite penalized by milder weather conditions than usual, electricity distributed increased by 1%, resulting in a total of 54TWh.

• The Installed Capacity Equivalent Interruption Time (ICEIT) scored, in Portugal, once again an excellent record, with 53 minutes, being bellow the regulator’s reference. In Spain, EDP continues to be a leader in quality of service of the Spanish electricity sector, with an ICEIT of 20 minutes. System Average Interruption Frequency Index (SAIFI) in Portugal also improved its performance compared to 2016, and registered 1.47 interruptions for domestic customers and small businesses and 1.66 interruptions for business customers.

• Regarding electricity grid losses in Portugal, highlight for the increase of this indicator compared to 2016, reaching 10%, above the regulatory target of 9.25%.

2016

KM of network

245,916

Distribution overhead lines

192,567

Distribution underground lines

53,349

Electricity Distributed (Gwh)

53,789

Portugal

44,599

Spain

9,190
2017

km of network

246,641

Distribution overhead lines

193,016

Distribution underground lines

53,625

Electricity Distributed (Gwh)

54,084

Portugal

44,753

Spain

9,331