Press Release: EDC reports 1Q 2017 attributable recurring net income of Php3.25Bn, up by 24%

May 8, 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 1Q 2017 attributable recurring net income of Php3.25Bn, up by 24%".

cc: VINA VANESSA S. SALONGA

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

May 8, 2017

Energy Development Corporation (EDC), the country's largest renewable energy company, reported a consolidated recurring net income attributable to equity holders (RNIA) of the Parent of Php3.25Bn for the first quarter of 2017. This is 24% higher than the Php2.63Bn that was posted during the same period last year.

Consolidated revenues also increased by 6% to Php9.61Bn in 1Q 2017. The improved performance was primarily driven by higher average prices from its key geothermal units and by the increase in generation volumes of its Unified Leyte geothermal plants and Burgos wind farm (9.8% and 39.4%, respectively).

"The results for this quarter show that we are gaining traction on our goal to deliver 'financial predictability' to our investors. Our aggressive efforts to address our uncontracted capacity for Bacman and Nasulo last year and our extensive asset rehabilitation program in Leyte and for our other units are starting to pay off", EDC President and Chief Operating Officer (COO) Richard Tantoco stated.

EDC had previously disclosed that low spot market prices last year resulted to estimated revenue losses of about Php1.40 billion during its 2016 fiscal year, and that it had embarked on a multi-billion peso project to reduce the unplanned outage factors of its older geothermal units.

"The retrofit of Tongonan's two other units are on track to be completed by the third quarter", Tantoco added, referring to EDC's 112.5 MW power plant in the Visayas region. "After the retrofit, it will be as good as new and we expect an increase of up to 10% in its total capacity", Tantoco further stated.

EDC's 150 MW Burgos wind farm, the largest in the country, also benefited from strong wind factors in the first quarter of 2017. Total sales volume increased from 103 GWh to 144 GWh for the period, helping off-set the reduced sales volume from its hydro unit (from 256 GWh to 219 GWh).

As of the first 3 months of 2017, the Company's financial position remained strong with cash balance of Php 13.86Bn. It maintained a comfortable gearing level with consolidated net debt to equity of 1.04 to 1 and consolidated net debt to EBITDA of

2.60 to 1.