EDP Energias de Portugal S A : Relatório Intercalar Finance BV 1S20

EDP FINANCE B.V.

Amsterdam

INTERIM REPORT

June 30, 2020

EDP FINANCE Amsterdam
CONTENTS
Page
Responsibility Statement	3
Report of the Management Board	4
Interim Financial Statements
Condensed Company Income Statement for the six-month period ended
30 June 2020 and 2019	6
Condensed Company Statement of Other Comprehensive Income for the
six-month period ended 30 June 2020 and 2019	7
Condensed Company Statement of Financial Position as at 30 June
2020 and 31 December 2019	8
Condensed Company Statement of Changes in Equity as at 30 June
2020 and 31 December 2019	9
Condensed Company Statement of Cash Flows as at 30 June 2020
and 2019	10
Notes to the Interim Financial Statements	11
Other information	12
2

EDP FINANCE Amsterdam 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 interim report gives a true and fair view of the position as per the balance sheet date and the development during the financial period of EDP Finance B.V. in the semi-annual financial statements, together with a description of principal risks it faces.

Amsterdam, 3 September 2020

The Managing Directors:

EDP - Energias de Portugal S.A.

Arendsen, R.

van der Werff, M. F. C.

TMF Netherlands B.V.

EDP FINANCE Amsterdam

REPORT OF THE MANAGEMENT BOARD

The Managing Directors of EDP Finance B.V. (hereinafter "the Company") submit the interim report and the condensed financial statements of the Company for the period ended 30 June 2020.

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW General

The Company was incorporated under the laws of The Netherlands on 1st October 1999.

Activities

The principal activity of the Company is to act as a finance company to EDP Group. The policy of the group is to centralize financing in EDP - Energias de Portugal S.A. (hereinafter "EDP S.A.") and the Company.

Results

During the six-month period under review, ending on 30 June 2020, the Company recorded a loss of 26,843 thousand Euros (six-month period ending 30 June 2019 - loss 29,507 thousand Euros). The increase in results YoY is essentially due to the YoY decrease on the interest expense (resulting mostly from long-term bonds that matured in the second half of 2019 and were replaced by other liabilities with lower interest rates as per improved market conditions) that was greater than the YoY decrease on the interest income. On the other hand, adverse market conditions during the first four months of 2020 impacted negatively the fair value of some EUR/USD CCIRS, and consequently the net other financial income and expense results.

Debt maturing in 2021 bears higher coupon rate than assets maturing and current market funding conditions, which should continue to improve the net interest margin.

Relevant events in the first half year of 2020

In January 2020, EDP Finance B.V. repaid a USD 750 million bond issued in November 2014 that carried a coupon of 4.125%.

In June 2020, EDP Finance B.V repaid a EUR 300 million bond issued in June 2005 that carried a coupon of 4.125%.

In June 2020, EDP Finance B.V. issued USD 225 million commercial paper out of a 5-year Programe.