EDP Energias de Portugal S A : Finance BV Annual Report 2021

Annual Report 2021

EDP Finance B.V.

Annual Report

31 December 2021

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CONTENTS
Responsibility Statement ....................................................................................................................................................................	4
Report of the Managing Directors...................................................................................................................................................	5
Financial statements..........................................................................................................................................................................	11
Company Income Statement for the years ended 31 December 2021 and 2020 .........................................................	12
Company Statement of Other Comprehensive Income for the years ended 31 December 2021 and 2020 ........	13
Company Statement of Financial Position as at 31 December 2021 and 2020 ............................................................	14
Company Statement of Changes in Equity as at 31 December 2021 and 2020 ...........................................................	15
Company Statement of Cash flows for the years ended 31 December 2021 and 2020.............................................	16
Notes to the financial statements for the years ended 31 December 2021 and 2020 ................................................	17
Other Information................................................................................................................................................................................	40

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RESPONSIBILITY STATEMENT

The Managing Directors of the Company wish to state:

1. That the financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of EDP Finance B.V.;
2. That the annual report gives a true and fair view of the position as per the balance sheet date, the development during the financial year of EDP Finance B.V. in the annual financial statements, together with a description of principal risks it faces;
3. That the Report of the Managing Directors gives a true and fair review of the development and the performance of the business of EDP Finance B.V. during the financial year to which the report relates.

Amsterdam, 17 February 2022

The Managing Directors

EDP - Energias de Portugal, S.A.

Arendsen, R.

TMF Netherlands B.V.

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REPORT OF THE MANAGING DIRECTORS

The Managing Directors of EDP Finance B.V. (hereinafter "the Company") submit the annual report and the financial statements of the Company for the year ended 31 December 2021.

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW

General

The Company was incorporated under the laws of The Netherlands on 1st October 1999 and is a direct wholly-owned subsidiary of EDP - Energias de Portugal, S.A. ("EDP SA").

Activities

The main activity of the Company is to act as a finance company for the EDP Group ("EDP"), raising funds in the international capital and bank loan markets to finance EDP's activities and investment plan. The activity of the Company is therefore determined in accordance with the business plan and overall strategy defined for EDP, its debt maturity schedule and EDP's financial policy, including a conservative liquidity profile and centralization of the majority of fund raising at EDP SA and the Company for Group subsidiaries, as well as prevailing market conditions.

The Consolidated Financial Statements of EDP can be consulted in www.edp.com.

Overview of the Company´s Results, Solvency and Liquidity

During the year ended 31 December 2021, the Company recorded a profit of EUR 10.47 million (2020: profit of EUR 5.95 million).

The improvement in results is essentially related with the reduction on interest expenses, impacted by the maturity of long- term liabilities in January of 2021, which were replaced partially by lower yielding debt as per improved market conditions.

The Company holds a comfortable equity position, which amounts to EUR 130 million (2020: EUR 118.5 million). The increase results essentially from the net profit improvement in 2021, as mentioned above.

Net current assets amount to EUR 1,163 million (31 December 2020: EUR 1,017 million), which reflect the Company´s ability to generate enough cash to pay off all its short-term liabilities once they become due, during a 12-month period.

Furthermore, the Company holds a robust liquidity position, since the amount of available liquidity (including committed credit line facilities) covers the Company´s refinancing needs for at least 18 months, in line with EDP´s liquidity policy.

Major Developments

Several long-term liabilities have reached maturity during the financial year, with a total of USD 750 and EUR 600 million, with an average rate of 4.7%.

The financing transactions concluded in the year allowed the Company and EDP Group to reach different markets and investors, obtaining the necessary funding for current and next year's redemptions as well as to strengthen the liquidity position, ahead of refinancing needs for the following years.

Subsequent Events

On 31 January 2022, M.F.C.van der Werff resigned as Director of EDP Finance B.V.. The Company is currently in the process of appointing a new Director.

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