H1 2018 Highlights

17 Northern Ireland Electricity (NIE) Networks Business Description ~16% of Group EBITDA and 17% Group Assets Sole owner and operator of distribution network and sole owner of transmission network in Northern Ireland Regulated Asset Base 2017 €1.7bn / £1.5bn nominal • Strategy: Smart Reliable Networks RP6 revenue determination (Oct 2017 - Mar 2024) RP6 WACC 3.2% vanilla real 1 (3.8% pre tax real), reflecting low interest rate environment¹ • Focus: RP6 Implementation ES3 H1 2018 EBITDA - €620m NIE Networks 16% RAB (€bn) £1.5bn 2 £1.2bn 2 RP4 April 2013 RP5 Sept 2017 Energy for generations 1 Vanilla WACC ACC calculated real pre tax cost of debt and real post tax cost of equity 2 RAB values are per the UR at the start of RP5 (1st April 2013) and end of RP5 (30 Sept 2017) esb.ie/ir

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