EDP Energias de Portugal S A : Annual General Shareholders Meeting Presentation

ANTÓNIO MEXIA APRIL 16th, 2020

MAIN EVENTS THAT CONTRIBUTED TO EDP'S SUSTAINABLE

GROWTH STRATEGY IN 2019

	S&P affirms rating of
	EDP at "BBB-" with	EDP secures
	stable outlook	EDP secures 15-year
EDP prices		100MW solar with
€1000M Green	€800m asset	30MW of batteries	tariff for a 142MW
Hybrid Bond	rotation deal in	PPA in California in	solar project in
	Europe	the USA	Portugal

Colombian wind energy market

entry with two 15-year PPA

contracts for ~500MW

EDP and Shell secure offshore wind contract for 804 MW in Massachusetts, USA

EDP secures 200 MW PPA for a

new solar project in the U.S.

Tariff review of the 2 Brazilian Distributors with suffered cuts < 0.5%

Agreement to sell 6

hydro plants in Portugal

for €2.2Bn

EDP is awarded long- term CfD for 307 MW of wind at Polish energy auction

Strategic Update			R$1,2Bn asset	EDP issues a €600M 7-year	EDP secures
	EDP and Engie join
2019-2022		forces to create a	rotation	Green bond	100MW PPA for
		leading offshore wind	transaction for	#1 Globally among integrated	a wind project in
		player	wind farms in Brazil	Rio Grande do
		EDP acquires a 142km		utilities in the DJSI1	Norte in Brazil
			Subscription of the Business
		long electricity
			Ambition for 1.5 ºC - Our Only
		transmission line in
			Future
		Brazil
				EDP secures a PPA for 100 MW
	1 Dow Jones Sustainability Index		of wind energy in Mexico

THE RESULTS IN 2019 REFLECT THE GOOD PERFORMANCE OF THE GROUP

EBITDA	€3,706 M		RECURRING	€854 M		NET DEBT	3.6x
	(+12% YoY)		NET PROFIT	(+7% YoY)		/ EBITDA	(vs. 4.0x Dec-18)

+4% Renewables

+27% wind and solar impacted by increase in generation, coupled with the increase in average selling price, and asset rotation gains of €313M -29%hydro due to low volumes in Iberia (HCF of 0.81)

+19% Networks

+75% operation in Brazil, new regulatory cycle in the distribution and development of new transmission lines

-4% OPEX adjusted in Iberia

+52% Clients and Energy Management

+€106M Energy Management in Iberia with solid results of hedging to offset reduced margins and volumes in coal

+€93M Iberian supply, given market context normalization

+52% EDP Renewables	Net debt
Record net profit of €475 M	€13.8 Bn, +3% YoY
+5% EDP Brasil	Lowest leverage ratio since 2007
Record net profit of R$1,338 M

-€98M Reported net losses in Portugal For the second consecutive year impacted by:

1. Impairment in Sines (-€94 M);
2. Provision for the project of Fridão (-€59 M)
3. Low hydro volumes

WE PROMOTE AN ORGANIZATION THAT IS CLOSE TO ITS EMPLOYEES AND

READY TO ADDRESS THE DEFINED STRATEGIC TARGETS

WE ARE A COMPANY FOCUSED ON DIVERSITY AND IN THE DEVELOPMENT

OF OUR 11.660

EMPLOYEES

NATIONALITIES	WOMAN	GENERATION	MOBILITY
		Y AND Z

ENGAGEMENT LEVEL OF 73%, 7% ABOVE THE MARKET AND 6% ABOVE THE UTILITIES SECTOR1,

WHICH DEMONSTRATES THE STRONG COMMITMENT OF OUR EMPLOYEES TO EDP

EDP distinguida com nível de excelência como empresa familiarmente responsável	Global 2000 - World's Best Employers
1 20 utilities totaling c. 200,000 employees

FULLY COMMITTED TO OUR COMMUNITY THROUGH THE INVESTMENT IN CULTURAL AND SOCIAL PROJECTS

EDP has the largest social and cultural corporate investment program in Portugal

18 exhibitions, including an exhibition of the 6 finalists of the New Artists Awards

Centenary of the Central Tejo building

+ 330 thousand visitors

EDP

SOLIDÁRIA

9 health projects (Respiratory diseases)

+ €1M invested

~15 thousand beneficiaries

2nd year with 8 editions in PT and EN

24.000 circulated copies

• 100 authors - Boris Groys, Gerhard Richter, Pedro Cabrita Reis, Maria
  Filomena Molder…

ESCOLAS

SOLIDÁRIAS

• 80.000 direct beneficiaries
• 500 schools

CULTURAL

PATRONAGE

Casa da Música, Fundação Serralves, Fundação Árpád Szenes/Vieira da Silva, Orquestra Sinfónica Juvenil, Galeria Municipal do Porto, Companhia Nacional de Bailado

ARTE

PÚBLICA

• 100 works of art
• 60 artists

40 parishes

2019 WAS ALSO MARKED BY THE DELIVERY OF THE MAIN COMMITMENTS ASSUMED UNDER THE 2019-22

STRATEGIC UPDATE

EDP Vision

Leading the energy transition to create superior value

ACCELERATED AND

FOCUSED GROWTH

CONTINUOUS PORTFOLIO OPTIMIZATION

SOLID BALANCE SHEET AND LOW-RISK PROFILE

EFFICIENT AND DIGITALLY ENABLED

ATTRACTIVE SHAREHOLDER REMUNERATION

76% of 7GW of growth in renewables secured through

long-term contracts and average maturity >15 years

59% of transmission investment in Brazil: 30-year fixed

remuneration1 with financing in local currency

€3.2Bn from the agreement for the sale of hydro assets and asset rotations, representing > 50% of the target until 2022

79% Regulated EBITDA3

Reduction in the leverage ratio to lowest level since 2007

Financial liquidity of €6.7Bn, as of March 2020, allows to cover financing needs beyond 2022

27% OPEX / Gross Margin, already aligned with target defined for 2022

€0.2Bn of digital TOTEX, aligned with the plan

Stable and sustainable dividend policy

Strong commitment to decarbonisation and high ESG2 standards across the organization - #1 Globally among integrated utilities in the DJSI4

1 Inflation adjusted | 2 Environmental, Social, and Governance | 3 Regulated or long-term contracted | 4 Dow Jones Sustainability Index

EDP'S VISION OF LEADING THE ENERGY TRANSITION IS REFLECTED IN

THE POSITIVE MARKET VALUATION

EDP share performance1

2019

+34%

SX6E2 +28%

PSI-20+15%

190

170

1502019 - Apr/20

130	+31%
110	+14%
90	-7%
70
50
Jan-19Feb-19Mar-19May-19Jun-19	Jul-19Sep-19Oct-19Dec-19Jan-20Feb-20Apr-20

Stability and sustainability of EDP's dividend policy secures presence in the European reference indexes focused on dividends3

S&P EURO DIVIDEND	#1
ARISTOCRATS INDEX	40 companies
EURO STOXX SELECT	#2
DIVIDEND 30 INDEX	30 companies
STOXX EUROPE SELECT	#14
DIVIDEND 30 INDEX	30 companies

COMMITMENT TO THE ENERGY TRANSITION AND DIVIDEND STABILITY

ARE DECISIVE FACTORS IN THE LONG TERM STRATEGY

1 Bloomberg (9.APr.2020) | 2 SX6E: European utilities index | 3 Based on most updated available data

WE HAVE A STRONG TRACK RECORD IN SUSTAINABILITY, RESULTING

FROM A CONSISTENT PERFORMANCE OVER THE PAST 10 YEARS

N O N - E X H A U S T I V E

#1 global	Top 6 among	#1 global	Top 5 utilities3	93rd Percentile4
integrated utilities1	comparable peers2	integrated utilities1	globally	utilities globally

WE WANT TO CONTINUE TO GROW SUSTAINABLY,

SIDE BY SIDE WITH OUR STAKEHOLDERS

1) Integrated electric utilies: companies that generate electricity, manage transmission and distribution lines and sell electricity | 2) Energy and Utilities | 3) ICB Supersector: Utilities | 4) Bloomberg

WE ARE WELL POSITIONED AND FULLY ON TRACK TO DELIVER OUR DECARBONIZATION COMMITMENTS

The acceleration of the decarbonization process will be

• Generation from renewables

Specific emissions

reduction in 90%

(vs. 2005 levels)

200520%

2019

66%

2025 >80%

2030 >90%

628 gCO2/KWh	2005
-66%	2019
-85%	2025
-90%	2030

fundamental for the relaunch of the economy in a post COVID-19 scenario

Become coal free

before 2030

Aboño 1: will be converted to gas (COD 2022)

Aboño 2: as a backup
Soto 3: No production	Sines
since Jun-19
(1,2 GW)
Sines: Shutdown up to 2023,
conditional on positive margins

Aboño 1&2

(0,9 GW)

Soto 3

(0,3 GW)

EDP HAS BEEN CONTRIBUTING TO THE FIGHTING OF THE PANDEMIC WITH A NUMBER OF STAKEHOLDER INITIATIVES

We have an integrated plan to ensure the health and safety of our employees, the supply of energy and the support to those who are on the front line

THE HEALTH OF OUR EMPLOYEES COMES FIRST

Corporate		Field	Dispatch	Stores/Call Centers
99%	38%	37%		79%

72% OF EDP GROUP EMPLOYEES IN TELEWORKING1

% Teleworking

Preserve the health of our	Ensuring business
employees	continuity
Implementation of teleworking	Reinforcement of cleaning
Internal Communication	and disinfection activities
reinforcement	Delivery of personal
Internal medical support line to more	protective equipment
than 45,000 people	Alternating shifts, without
	contact and team redundancy

1 Includex fixed-term contracts

WE TAKE CARE OF OUR CLIENTS, ENSURING THE SUPPLY OF ENERGY

We support our client base …

Suspension of energy cuts

Flexibility of the term and payment method (without interest)

Reinforcement of digital contact channels and call centers

• with special attention to those who are on the front line

Free electricity supply

10 hotels requested to provide hospital support

20% discount offer on electricity for:

Doctors, nurses and technicians of the Portuguese National Health System in Portugal and Spain

~70.000 professionals

Integrated long-term care units and residential structures in the area of disability, childhood and community

~500 institutions

WE CONTRIBUTE TO MAINTAIN THE ECONOMIC ACTIVITY AND

THE EMPLOYMENT,ALSO WITH OUR SUPPLIERS

Stable workforce and

maintenance of the hiring plan for the EDP Group in 2020 for a total of 700 people

Investment plan

totaling more than €9Bn, between 2020 and 2022, the remaining period of the Business Plan

Anticipated payments

to more than 1.200 SMEs1 in early April

Prompt payment of a

set of invoices, each of up to €500K, to SMEs1 until the end of May

1 SME - Small and Medium Enterprises

WE HAVE SHOWN OUR COMMITMENT TO

OUR COMMUNITIES SINCE THE VERY FIRST MOMENT

N O N - E X H A U S T I V E

~€4M in medical equipment	Social fund of ~€545k in
(50 ventilators, 200 monitors	community projects and for
and medical life support	vulnerable communities

equipment in partnership with CTG)

€500k personal protective equipment for 300 nursing homes

+ €1,8M of medical equipment

~€110k donation to nursing homes and social institutions

€500k personal protective equipment

€100k donation of essential goods for nursing homes and NGOs

250k for the production of a new invasive ventilator model (CEiiA1)

"Gulbenkian Soluções Digitais Covid-19" - €100k for platforms and apps that promote public health

Management of Covid.pt platform (volunteering program)

€102k in electronic equipment for schools

Volunteering program in partnership with the Portuguese Ministry of Education to adapt schools to digital platforms

Movement Portugal #EntraEmCena - digital platform for artists

1 CEiiA - Centre of Engineering and Product Development

EDP IS A RESILIENT COMPANY, FULLY COMMITTED TO ALL ITS STAKEHOLDERS

EDP's strategic options imply

green and sustainable growth with high ESG1 standards

These options are reinforced by the pivotal role of the European Green Deal, which will be key in the relaunch of the economy post COVID-19

We take on the commitment by providing safety and business continuity

We take on the commitment by contributing to maintain

the economic activity and the employment

We take on the commitment through the proposal of a

stable and sustainable dividend

We take on the commitment through the supply of energy and special attention to those on the front line

We take on the commitment through the investment in

cultural projects and more than 50 social initiatives

1 Environmental, Social, and Governance