Lisbon, June 2020 This document has been prepared by EDP - Energias - PowerPoint PPT Presentation

Lisbon, June 2020

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. INVESTORS PRESENTATION 2

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• in Spain (1) • installed capacity • energy clients (2) • 2002 & 2008 • production • TWh electricity / TWh gas 50% equity stake in CHC (3) • EBITDA: 2019 | Avg 17-19 | All figures as of 2019; (1 ) By # of supply points in free market; (2) Corresponds 2.5m contracts of which 0.9m electricity contracts, 0.8m gas contracts, 0.6m services contracts and 0.2m clients from 50% stake in CHC; (3) CHC, 50/50 joint ventures with CIDE, which has 0.4m clients. INVESTORS PRESENTATION 4

TWh GW; 2019 3.7 GW TWh; 2019 10.2 TWh Total TWh 77% 23% 79% 21% ~3.6 Expected electricity production ~2.0 Contracted B2B B2C 2.1 electricity sales INVESTORS PRESENTATION 5

Min 3.7x €1.2bn €3.4bn €million; 2019 Max x €million; 2019 10.1x EDP’s consensus Sum of the Parts valuation Weight of disposed portfolio in EBITDA Spain and Client Solutions & EM Iberia business Client Solutions & EM Iberia business 12 analysts (1) 2019 89% 11% EBITDA 19 Avg EBITDA 17-19 94% 6% Transaction EV (1) Includes the enterprise values attributed to CSEM Iberia by the following analysts that disclose this detail: AllianceBernstein, Bank of America Merrill Lynch, Caixa Bank BPI, Credit Suisse, Goldman Sachs, JB Capital, JP Morgan, Kepler Cheuvreux, Morgan Stanley, RBC, Santander and Société Générale. INVESTORS PRESENTATION 6

• wind (#3 player), hydro  wind & solar under development (LT contracted) • of RAB • electricity distributed • of grid • 10TWh of electricity, 4TWh of gas  Growth in distributed solar and e-mobility • gas plants, coal, 0.16 GW nuclear  0.7 GW of coal to be shutdown by 2022  Coal-to-gas conversion project at Aboño 1 All figures as of 2019. INVESTORS PRESENTATION 7

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EBITDA: +6% YoY Renewables production +16%: Hydro recovery vs. very weak 1Q19, wind resources below avg. Sound results energy management EBITDA Brazil: Negative forex impact (BRL vs. EUR: -13%) Net Profit: +45% YoY Recurring Net Profit +51% to €252 Mn Net Profit 1Q20 includes €45 Mn non-recurring cost on bond buyback Avg cost of debt -60bps to 3.4% supported by competitive refinancing Net debt: -8% YTD Net Debt / €12.7 Bn Net Debt to the lowest level since 2007 EBITDA 2 Tariff deficit sale (€0.8 Bn), Asset Rotation in Brazil (€0.3 Bn) Financial liquidity Mar-20: €6.9 Bn, covers financing needs beyond 2022 Dividend 2019 dividend: €0.19/share (81% payout ratio 1 ); payment date: May 14 th per share 1) Based on recurring net profit | 2. Adjusted to Regulatory Receivables and the temporary impact from tariff deficit sale INVESTORS PRESENTATION 9

EDP Hydro production in Iberia EDP Wind production TWh TWh +2% YoY, if excluding 0.8TWh production in 1Q19 from wind farms subject to asset rotation 4.9 8.4 7.7 2.7 1Q19 1Q20 1Q19 1Q20 Hydro resources Wind resources vs. LT Avg. 1 vs. LT Avg. (P50) Hydro reservoir YE 1 (TWh) 1) Source: REN. Hydro resources reference from Portugal only INVESTORS PRESENTATION 10

Capacity decline YoY justified by asset rotation deal in Jul-19 (51% stake, -1.0 GW gross, -0.5 GW net) , Electricity generation in 1Q20 Wind Capacity evolution YoY TWh GW, Mar-20 0.7 Other Coal 6% 2% 0.8 GW net CCGT capacity under construction 12% as of Mar-20 Solar Wind 0% 1.3 42% 37% -0.6 Hydro Built-out Asset rotation ∆ YoY renewables 1) EBITDA + Equity capacity INVESTORS PRESENTATION 11

+8% ex-forex EBITDA 1 1Q20 € Mn; YoY growth,% ∆ YoY 980 927 -€47 Mn Wind & Solar +€65 Mn Hydro Iberia 549 -€28 Mn Hydro Brazil Renewables 559 -€5 Mn Iberia 237 -€1 Mn Brazil Networks 242 Client solutions & EM +€82 Mn Iberia 203 Other/adjust 117 +€4 Mn Brazil 9 -9 1Q19 1Q20 1) FX Impact on EBITDA: -€21 Mn (BRL), +€3 Mn (USD) INVESTORS PRESENTATION 12

EBITDA – Wind & Solar € Mn; YoY growth,% 387 1Q19 1Q20 YoY 340 Avg. Installed Capacity 1 , GW Europe 233 Production vs. LT Avg. (P50), % 179 Electricity Production, TWh Avg. selling price, €/MWh North America 147 159 Brazil & Other 7 2 1Q19 1Q20 1) Considers capacity at EBITDA level INVESTORS PRESENTATION 13

forex) (-38% ex- EBITDA – Hydro € Mn; YoY growth, % 209 1Q19 1Q20 YoY Hydro Production 1 , TWh 172 Avg selling price 2 , €/MWh 177 Iberia 112 1Q19 1Q20 YoY PLD, R$/MWh Brazil 60 GSF 32 1Q19 1Q20 1) Excludes small hydro plants | 2) Does not consider results from hedging INVESTORS PRESENTATION 14

forex) (+11% ex- EBITDA – Networks € Mn; YoY growth,% 1Q19 1Q20 YoY Return on RAB Portugal 1 , % 242 237 RAB Iberia 2 , € Mn Opex Iberia, € Mn Portugal 131 126 1Q19 1Q20 YoY Transmission EBITDA, R$ Bn Spain 34 34 Distribution EBITDA, R$ Bn Brazil 77 76 Electricity distributed, TWh 1Q19 1Q20 1) RoRAB of HV/MV | 2) Accounting RAB as of March INVESTORS PRESENTATION 15