ESG Presentation Lisbon, September 2020
Disclaimer This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") solely for use at the presentation to be made on this date and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this presentation is made, or by reading the presentation slides, you acknowledge and agree to be bound by the following limitations and restrictions. Therefore, this presentation may not be distributed to the press or to any other person in any jurisdiction, and may not be reproduced in any form, in whole or in part for any other purpose without the express and prior consent in writing of the Company. This presentation and all materials, documents and information used therein or distributed to investors in the context of this presentation do not constitute or form part of and should not be construed as, an offer (public or private) to sell or issue or the solicitation of an offer (public or private) to buy or acquire securities of the Company or any of its affiliates or subsidiaries in any jurisdiction or an inducement to enter into investment activity in any jurisdiction. Neither this presentation nor any materials, documents and information used therein or distributed to investors in the context of this presentation or any part thereof, nor the fact of its distribution, shall form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever and may not be used in the future in connection with any offer (public or private) in relation to securities issued by the Company. Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements are statements other than in respect of historical facts. The words “believe,” “expect,” “anticipate,” “intends,” “estimate,” “will,” “may”, "continue," “should” and similar expressions usually identify forward-looking statements. Forward-looking statements include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; energy demand and supply; developments of the Company’s markets; the impact of legal and regulatory initiatives; and the strength of the Company’s competitors. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the company’s business strategy, financial strategy, national and international economic conditions, technology, legal and regulatory conditions, public service industry developments, hydrological conditions, cost of raw materials, financial market conditions, uncertainty of the results of future operations, plans, objectives, expectations and intentions, among others. Such risks, uncertainties, contingencies and other important factors could cause the actual results, performance or achievements of the Company or industry results to differ materially from those results expressed or implied in this presentation by such forward-looking statements. The information, opinions and forward-looking statements contained in this presentation speak only as at the date of this presentation, and are subject to change without notice unless required by applicable law. The Company and its respective directors, representatives, employees and/or advisors do not intend to, and expressly disclaim any duty, undertaking or obligation to, make or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this presentation to reflect any change in events, conditions or circumstances. 2
OUR 2030 VISION Leading the energy transition to create superior value Decarbonization >90% renewables Reduce 90% specific Become generation emissions (vs 2005 levels) coal-free Digitalization Decentralization >4 Mn decentralized >1 Mn clients with 100% smart grids (in Iberia) solar PV panels installed e-mobility solutions 3
We are in a privileged position to capitalize on the energy transition given our early-mover advantage We are a global leading renewables player… ... prepared for the future Source of generated electricity, TWh ~21 GW of renewables capacity 1 deployed worldwide Non-renewables >€21 Bn deployed in renewables since 2006 75% in wind onshore >90% Renewables >70% 40% in the US 66% 80% 20% Renewables generation in 1H20 2005 2018 2022 2030 1 EBITDA + Equity GWs 4
Build-out for renewables projects secured for 2019-22 increased from 40% to 84% of 7GW target for the period Renewables Capacity LT Projects already secured Unprecedent execution contracts secured for 19-22 GW Build-out GW; Aug-20 offshore +3.1 GW solar 6.0 GW Medium-term BP execution on 6.0 wind track 2.0 <0.5 GW projects expected to have potential COD delays in 0.3 1.6 2020, although without impact 1.5 0.1 0.2 in projects’ fundamentals 2.9 0.7 84% 0.4 1.1 +0.5 GW from Viesgo 0.9 0.5 renewables acquisition 0.1 1.4 40% expected to be closed in 2H20 1.1 1.0 0.7 0.5 Mar-19 Aug-20 2019 2020 2021 2022 post-2022 5
Ocean Winds; Offshore JV fully in operation with assets transferred to be fully completed in 2020 PROJECT NAME COUNTRY UPDATE EDPR ENGIE STATUS TYPE CAPACITY Offshore-Fixed Sold to JV 33.3% 23.3% U/Construction 950 MW Moray East Offshore-Fixed Sold to JV 29.5% 31.0% U/Development 992 MW Tréport & Noirmoutier Offshore-Fixed 800-950 MW Sold to JV 67.0% 33.0% U/Development Moray West Offshore-Floating Pending In Operation (1) 25 MW 54.4% 25.0% Wind Float Atlantic Offshore-Floating Sold to JV 35.0% 45.0% U/Development Leucate 30 MW SeaMade Offshore-Fixed 487 MW Pending - 17.5% U/Construction Offshore-Fixed Pending U/Development Mayflower 804-1,300 MW 50.0% - B&C Wind Offshore-Fixed Sold to JV U/Development 400 MW 100.0% - Total ownership with tariffs/PPAs (net MW) 1,669 MW 1,035 MW 634 MW = + Total ownership (net MW) 3,135-3,285 MW 2,237-2,338 MW 898-947 MW Assets already sold to Ocean Winds generated a capital gain of €145m Projects with tariffs/PPAs awarded 1 Since July 2020 6
EDP was pioneer in developing floating technology for offshore wind, having installed in Portugal the largest turbine on a floating platform WindFloat Atlantic (Portugal) Benefits of floating offshore wind At farther distances from the shore, the wind blows 25 MW (3 x 8.4 MW) stronger and its flow is more consistent 20km off-shore Smaller impact on environmental surroundings 100m water depth Larger wind turbines can be used Potential of floating offshore wind Potential Share of offshore wind resource in +60m depth 33% equity stake in Principle Power 4,000 GW 80% (technology developer) 2,450 GW 60% Developing Leucate (30 MW, floating) in France 500 GW 80% Source: WindEurope 7
We are anticipating shutdown of coal plants in Iberia Coal sites in Iberia 1H20 Developments Coal production in Iberia: -76% YoY in 1H20 , Aboño to be converted to gas with all coal plants off in 2Q20, except Aboño 2 Aboño 1&2 (0.9 GW) (COD 2022) Soto 3 (0.3 GW) Energy transition projects under development Hydrogen: Sines Sines (1.2 GW) Renewables: Puento Nuevo and Los Barrios Become Storage: Soto 3 coal-free in Iberia well before 2030 Legend: Expected shutdown 2021 Continue operating post-2021 Accelerating decarbonization through renewables growth or the development of new technologies 8
The increase in intermittency will require higher flexibility and hydro plants with pumping are well positioned to provide that service Pumping – Conceptual scheme If the plant had no pumping We have 2.8 GW of pumped hydro in Portugal capacity, it would produce just Water inflow 20GWh (‘Output net of pumping’) equivalent to 2.3 GW if excluding the hydro plants to be sold 20GWh production Benefits of pumping: To sell 100GWh production… Upstream Competitiveness Reservoir Large scale storage … Needs to buy 100 / 80% (1) = 125GWh Long-term storage Downstream Total Output = 120GWh High flexibility levels Reservoir Energy Consumption = 125GWh Pumped hydro will play a key role in the future electricity system 1)Indicative efficiency rate 9
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