Press Release: EDC reports 1H 2017 attributable recurring net income of Php5.2Bn, up by 11%

August 14, 2017

OIC-HEAD, Disclosures Department The Philippine Stock Exchange, Inc. Philippine Stock Exchange Plaza

Ayala Triangle, Ayala Avenue, Makati City Dear Mr. Zuño:

In compliance with the disclosure requirements of the Exchange, we submit the attached press release entitled "EDC reports 1H 2017 attributable recurring net income of Php5.2Bn, up by 11%".

cc: VINA VANESSA S. SALONGA

Head - Issuer Compliance and Disclosure Department (ICDD) Philippine Dealing & Exchange Corp.

August 14, 2017

Energy Development Corporation (EDC), the country's largest geothermal and wind energy company, reported a consolidated recurring net income attributable to equity holders of the Parent of Php5.2Bn for the first half of 2017, or 11% higher than the Php4.7Bn posted during the same period last year.

Consolidated revenues reached Php17.7Bn in 1H 2017, up by Php0.7Bn or 4%, from the Php17.0Bn in 1H 2016. The increase was driven primarily by higher energy sales volumes booked by Unified Leyte Plants and the reduction in the Bacman Plants' exposure to the electricity markets following the increased proportion of contracted energy sales.

"1H 2017 results confirm progress EDC has made in boosting cash generation and in delivering financial predictability to investors by addressing the uncontracted portion of its Bacman power plants and by undertaking an extensive asset reliability program for the Leyte Power Plants", EDC Chief Financial Officer (CFO) Nestor Vasay stated.

Inclusive of non-recurring items, consolidated net income attributable to equity holders of the Parent stood at Php4.6Bn, 6% lower than the Php4.9Bn in 2016. The decline was primarily driven by higher operating expense, forex losses on loans and loss from the early redemption of a portion of the company's US$ denominated bonds partly offset by higher revenues mainly from Unified Leyte and the Bacman Power Plants.

"Earnings growth was strong during the first half of the year, but will likely become moderate for the second half of 2017 following the magnitude 6.5 earthquake that struck the island of Leyte last July 6. We, however, remain steadfast and have exerted efforts to expedite the return to service of the generating capacity of the Leyte Plants back to its pre-earthquake levels.", Vasay added.

As of the first half of 2017, the Company's financial position remained strong with cash balance of Php 10.9Bn. It maintained a comfortable gearing level with consolidated debt to equity of 1.2 times to 1 and consolidated net debt to EBITDA of 2.65 times to 1.