EDP Energias de Portugal S A : Results Handout 1H21

1H21

Financial Results

Webcast details

Webcast: www.edp.com

Date: Friday, July 30th, 2021, 11:30 am (UK/Portuguese time)

Lisbon, July 29th, 2021

Content

Main highlights for the period	2
Consolidated Financial Performance
EBITDA Breakdown	3
Profit & Loss Items below EBITDA	4
Investment activity	5
Cash Flow Statement	6
Consolidated Financial Position	7
Net Financial Debt	8
Business Segments
Renewables	10
Electricity Networks	16
Client Solutions & Energy Management	19
Income Statements & Annex
Income Statement by Business Segment	23
Quarterly Income Statement	24
Generation Assets: Installed Capacity and Production	25
Electricity Networks: Asset and Performance indicators	26
Financial investments, Non-controlling interests and Provisions	27
Sustainability performance	28
Share performance	29

EDP - Energias de Portugal, S.A. Headquarters: Av. 24 de Julho, 12

1249 - 300 Lisboa, Portugal

Regarding 2021 financial performance, EDP reitrates its expectation of a recurring EBITDA of €3.7 bn, a recurring net profit above €800m and net debt in the € 11.0-11.5bn range, maintaining the focus on results delivery and in the execution of our 2021-2025strategic plan.

It should also be noted that the asset rotation program has already secured c.25% of the €8 bn target until 2025. At the end of June, the sale of a portfolio of assets (405MW) in the United States for around €0.5 bn was concluded and additional asset rotation agreement was also recently announced for a 221 MW wind portfolio in Europe for €0.5 bn.

Main highlights for the period

Key Operational Data

Installed capacity (MW)

Weight of Renewables (1)

Production (GWh)

Weight of Renewables (1)

Scope 1 & 2 Emissions Intensity (gCO2/kWh)

1H21	1H20	∆ %	∆ Abs.
23,904	26,750	-11%	-2,846
79%	74%	-	5p.p.
29,941	31,992	-6%	-2,051
81%	80%	-	0p.p.
131	111	18%	+20

EDP's net profit increased 9% YoY to €343m in 1H21. Excluding no-recurring items, recurring net profit decreased by 15% YoY, to €326m in 1H21. 1H21 performance was positively impacted by the integration of Viesgo in Spain and the increase in results in networks in Brazil, having been penalized by the rise of energy prices in the Iberian market and by below-average US wind resources.

In renewables, over the past 12 months, EDP has installed +2.1 GW of wind and solar capacity, expanding its footprint into several new markets, reinforcing the Group's position as a global leader in renewables.

In the 1H21, 81% of EDP's electricity generation came from renewable energy sources, with coal installed capacity decreasing by 37% YoY, accelerating EDP's contribution to the decarbonization of the economy. Gross investments increased 29% YoY to €1.6Bn in 1H21, of which 95% is allocated to renewable energy and electricity networks activities, fully aligned with the energy transition.

Customers supplied (thousand of contracts)

9,234

11,374

-19%

-2,140 Recurring EBITDA decreased 6% to €1,678m in 1H21, excluding Forex impact, recurring EBITDA decreased only by -1%.

Customers connected (thous.)

Income Statement (€ million)

Gross Profit

OPEX

Other operating costs (net)

Operating costs

Joint Ventures and Associates (2)

EBITDA

EBIT

Financial Results

Income taxes & CESE (3)

Non-controlling Interest

Net Profit (EDP Equity holders)

Key Performance indicators (€ million)

Recurring EBITDA (4)

Renewables

Networks

Clients solutions & EM

Other

Recurring net profit (4)

11,338	10,508	8%
1H21	1H20	∆ %
2,416	2,657	-9%
741	724	2%
16	68	-77%
757	791	-4%
33	5	560%
1,692	1,871	-10%
966	1,052	-8%
(254)	(368)	31%
214	197	9%
154	173	-11%
343	315	9%
1H21	1H20	∆ %
1,678	1,791	-6%
1,007	1,082	-7%
587	440	33%
82	287	-71%
1	(19)	-
326	382	-15%

+830	Recurring EBITDA in the Renewables segment decreased by 7% to €1,007m mainly impacted by the decline of EBITDA from renewables
	operations in US, penalized by below average wind production, and by a c.€35m loss mostly in the ERCOT market in Texas, due to the Polar
∆ Abs.	Vortex extreme weather event that affected the US central region in the beginning of February. Last year's COVID-19 restrictions and
	adverse weather conditions contributed to delays in the construction of some renewable projects in the US, which were expected to
-242	start operating in the first part of this year, coming into operation towards the end of 1H21. The above-average performance of hydro
+17	generation in the Iberian market mitigated part of the negative impact, demonstrating the value of the EDP Group's geographic and
technological diversification strategy in the production of renewable energy.
-52
-35	Recurring EBITDA in the Electricity Networks segment had a strong growth of +33% to €587m, which includes the integration of Viesgo in
+28	Spain. Electricity distributed in the 3 geographies where EDP is present increased by 14% YoY, in particular, due to a recovery in the
	industrial sector. Furthermore, EBITDA benefited from the strong growth of electricity networks in Brazil, supported not only by a recovery
-179	in energy consumption in distribution (+10% YoY), but also by the execution of our greenfield investments in transmission, and the
-86	inflation update of regulated revenues, that more than offset the 17% YoY devaluation of the Brazilian real vs. the Euro.
The Client Solutions and Energy Management segment booked in the 1H21 a Recurring EBITDA of €82m, 71% below the performance of
+113
1H20, penalized by the sharp increase in energy prices in the wholesale markets, especially in 2Q21, which implied a significantly higher
+18	production and sourcing costs, as well as a negative mark-to-market impact on hedging contracts in energy markets. Also, worth to
-19
	mention that part of this negative performance is offset by the positive results in Hydro Iberia as well as in our supply division. In the
+29	energy supply business, EDP kept the average energy selling price to its clients stable, while the rate of penetration of new services to
	customers continued to evolve positively, increasing from 25% in 1H20 to 30% in 1H21.
∆ Abs.	Financial results performance is significantly impacted by the extraordinary cost related to the debt repurchase in 1Q20 (€57m), as well as
	by the positive evolution of FX and Financial Derivatives (+€10m in 1H21 vs. -€16m in 1H20). Excluding these impacts, net financial interest
-113	amounted to €264m, down 10% YoY, supported by the slight reduction (-20 basis points) in the average cost of debt to 3.1%
-75	By the end of June 2021, net debt amounted to €13.2 bn, impacted by an acceleration of investments, especially in renewables and
+147
-205	networks, following the strategic plan presented in Feb-21, as well as by an increase of working capital investment following the
+20	optimisation of treasury management in the context of high financial liquidity and low short-term interest rates.
-56

Key Financial data (€ million)

Net debt

Net debt/EBITDA (x) (5) FFO / Net Debt

Jun-21	Dec-20	∆ %	∆ Abs.
13,185	12,243	8%	+943
3.9x	3.5x	11%	0.4x
17%	19%	-10%	-2p.p.

(1) Including Wind, Solar, Hydro and mini-hydro capacity; (2) Full details on page 27; (3) CESE: Extraordinary contribution from the energy sector; (4) Excluding one-off impacts as per page 3 (EBITDA) and page 4 (Net profit);	(5) Net of regulatory receivables; net debt excluding 50% of hybrid bond issues
(including interest); Based on trailing 12 months recurring EBITDA and net debt excluding 50% of hybrid bond issue (including interest); Includes operating leases (IFRS-16)	- 2 -

EBITDA Breakdown

EBITDA (€ million)

1H21

1H20

∆ % ∆ Abs.

1Q20

2Q20

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

2Q YoY

EBITDA 1H21

∆ %

∆ Abs.

Renewables	1,007	1,163	-13%	-156	549	614	409	1,041	445	562	-	-	-13%	-156			Other (2)
Wind & Solar	654	793	-18%	-139	340	453	280	581	269	385	-	-	-18%	-139		Brazil	5%	Portugal
Hydro Iberia	281	304	-8%	-23	177	127	97	363	137	144	-	-	-8%	-23
Hydro Brazil	72	66	9%	+6	32	34	31	96	40	33	-	-	9%	+6	19%	36%
Electricity Networks	580	440	32%	+140	235	204	224	244	310	271	-	-	32%	+141
Iberia	412	317	30%	+95	160	157	167	154	214	197	-	-	30%	+95			€1.69 bn
Brazil	168	123	37%	+45	76	47	57	90	95	73	-	-	37%	+45
Client solutions & EM	103	287	-64%	-184	204	82	114	76	107	(4)	-	-	-64%	-184	18%
Iberia (2)	49	227	-78%	-178	168	59	89	29	77	(28)	-	-	-78%	-178	North
Brazil	54	60	-10%	-6	36	24	25	47	30	24	-	-	-10%	-6	America	22%
Other	1	(19)	-	+20	(9)	(10)	7	(35)	2	(1)	-	-	-	+20
Consolidated EBITDA	1,692	1,871	-10%	-179	980	891	754	1,325	864	828	-	-	-10%	-179			Spain
- Adjustments (1)	14	80	-82%	-	67	13	11	354	21	(7)	-	-	-82%	-
Recurring EBITDA	1,678	1,791	-6%	-113	912	878	743	971	844	834	-	-				94%	Energy Transition
-6%	-113

EBITDA in 1H21 amounted to €1,692m and recurring EBITDA amounted to €1,678m, a 6% YoY decline (-€113m YoY) vs. recurring EBITDA of €1,791m in 1H20, which excludes the impact from Hydro, CCGT and B2C supply activities disposed in Iberia in Dec-20 (combined EBITDA contribution of €102m in 1H20). EBITDA performance YoY comparison is largely impacted by weaker energy management results in Iberia vs. a very strong 1H20, aggravated by the sharp increase in energy prices in 1H21, the weak wind load factors and negative impact of the polar vortex in 1Q21 in the US, and adverse forex impact (-€97m YoY) mainly due to the 17% BRL depreciation vs. the Euro. Electricity networks EBITDA showed a very strong growth of 32%, supported by the Viesgo acquisition, the positive impact from annual inflation update of regulated revenues in Brazil, the execution of Transmission growth in Brasil, and also due to the recovery of economic activity, with distributed electricity increasing +14% YoY across the 3 geographies where EDP is present.

RENEWABLES (60% of EBITDA, €1,007m in 1H21) - Excluding the sale of 6 hydro plants in Portugal closed in Dec- 20 (EBITDA contribution of €81m in 1H20), EBITDA declined 7% YoY (-€75m YoY) mainly impacted by (i) the negative impact of the polar vortex weather event in US (-€35m), (ii) the de-consolidation of wind assets sold in December 2020 (€57m EBITDA contribution in 1H20), (iii) adverse forex impact (-€49m) and (iv) lower asset rotation gains (-€27m) which more than offset (v) the strong hydro performance Iberia in 1H21, particularly in 1Q.

ELECTRICITY NETWORKS (34% of EBITDA, €580m in 1H21) - EBITDA increased by 32% YoY (+€140m YoY), driven by (i) Viesgo contribution (€86m), (ii) +€22m in Portugal, mostly due to good OPEX performance on accelerated digitalisation (iii) +€45m in the Brazil, exceeding a significant negative impact from BRL devaluation (-€34m YoY), with EBITDA performance in local currency positively impacted by stronger demand, regulated revenues indexation to inflation and anticipation in the commissioning of a transmission line.

CLIENT SOLUTIONS & ENERGY MANAGEMENT (6% of EBITDA, €103m in 1H21) - Excluding the sale of B2C supply business and Castejon CCGTs in Spain closed in Dec-20 (EBITDA contribution of €21m in 1H20) and the one-off gain in 1Q21 (€21m) on the disposal of our 50% stake in the supplier CHC in Spain. Recurring EBITDA 1H21 decreased 71% YoY to €82m following the tough YoY comparison vs. the very strong energy management results in 1H20, aggravated by the adverse environment in 1H21, penalized by the sharp increase in energy prices in the wholesale markets, especially in 2Q21, which implied a significantly higher production and sourcing costs, as well as a negative mark-to-market impact on hedging contracts in energy markets and also the decommissioning of Sines coal plant in Dec-20 (€42m recurring EBITDA contribution in 1H20). This was just partially offset by the improvement of EBITDA in: (i) supply activities, supported by a recovery in B2B consumption (+19% YoY) and the increase of new services penetration rate (30% vs. 25% in 1H20); (ii) Thermal generation, mainly supported by the increase in the ancillary services in Spain. Again, part of this negative performance is offset by a positive impact in hydro. In Brazil, EBITDA performance largely reflected the BRL depreciation, while local currency performance was driven by a strong growth of the supply and energy management EBITDA supported by the positive impact from of the mark-to-market of some contracts with longer terms.

1. Adjustments include: (i) +€80m in 1H20, including the EBITDA contribution of 6 hydro plants in Portugal and Castejon CCGT and B2C supply sold in Dec-20 (€102m) and the cost related to the forced burning of coal ahead of Iberian coal anticipated shutdown (-€22m); (ii) +€14m in 1H21, including the one-off gain on the sale of our 50% stake in the energy supplier CHC in Spain to our partner CIDE (+€21m) and HR restructuring costs in Spain (-€7m).

(1) Adjustments for one-off impacts, described above(*); (2) Includes namely Poland, Romania, France, Belgium, Italy.

- 3 -

Profit & Loss Items below EBITDA

Profit & Loss Items below EBITDA (€ million)	1H21	1H20	∆ %	∆ Abs.	2Q20	3Q20	4Q20	1Q21	2Q21	2Q YoY
∆ %	∆ Abs.
EBITDA	1,692	1,871	-10%	-179	891	754	1,325	864	828	-7%	-64
Provisions	4	51	-93%	-47	35	78	(17)	12	(9)	-	-44
Amortisations and impairments	722	768	-6%	-45	401	340	524	356	366	-9%	-35
EBIT	966	1,052	-8%	-86	455	336	818	496	470	3%	+15
Net financial interest	(236)	(301)	22%	+65	(123)	(119)	(143)	(123)	(113)	8%	+10
Capitalized financial costs	45	26	71%	+18	14	15	29	24	21	51%	+7
Unwinding of long term liabilities (1)	(93)	(99)	6%	+6	(50)	(55)	(50)	(48)	(45)	11%	+5
Net foreign exchange differences and derivatives	10	(16)	-	+26	(11)	(1)	(7)	18	(8)	33%	+4
Other Financials	19	22	-11%	-2	9	23	6	6	14	48%	+4
Financial Results	(254)	(368)	31%	+113	(162)	(137)	(166)	(123)	(131)	19%	+31
Pre-tax Profit	712	684	4%	+28	293	199	652	373	339	16%	+46
Income Taxes	163	134	21%	+29	42	39	136	63	100	139%	+58
Effective Tax rate (%)	23%	20%			14%	20%	21%	17%	29%
Extraordinary Contribution for the Energy Sector	52	62	-17%	-11	(0)	3	-	51	0	-	+1
Non-controlling Interests (Details page 27)	154	173	-11%	-19	83	49	138	79	75	-9%	-8
Net Profit Attributable to EDP Shareholders	343	315	9%	+29	169	108	378	180	164	-3%	-5

The amount of provisions in 1H20 includes €30m related to the decision to anticipate the shutdown of Iberian coal plants booked in 2Q20.

Amortisations and impairments fell by 6% YoY, to €722m, mainly supported by the de-consolidation of assets in Spain (€12m in 1H20), an impairment of €77m on Sines coal plant in 1H20 and forex impact (€27m YoY). In addition, 1H21 amortisation and impairment charges reflect the impact from new capacity additions in the last 12 months.

Net Financial results amounted to -€254m in 1H21. Note that financial costs in 1H20 were negatively impacted by a €57m one-off cost related to the repurchase of a €750m hybrid bond (5.4% coupon). Excluding this one-off event, net financial interests improved 3% YoY to -€236m in 1H21, prompted by a 4% YoY decline in the average debt and a ~20bps YoY decline in average cost of debt to 3.1% (vs. 3.3% in 1H20). Net foreign exchange differences and derivatives (+€26m YoY) were mostly impacted by US Dollar and BRL derivatives. Capitalised financial expenses increased to €45m in 1H21 mainly due to increasing volume of work in progress in transmission in Brazil and in renewables.

Income taxes amounted to €163m, representing an effective tax rate of 23% in 1H21 vs 20% in 1H20 mainly due to capital gains taxed in US.

Non-controlling interests fell 11% YoY to €154m in 1H21, including: (i) €77m related to EDPR (-36% YoY), mainly explained by the decrease in net profit of EDPR; (ii) €66m related to EDP Brasil (+22% YoY) on the back of the strong performance of EDP Brasil, despite the Brazilian Real depreciation (details on page 27); and (iii) €14m following Viesgo acquisition in YE20.

Overall, net profit reached €343m in 1H21 (+9% or +€29m YoY). Adjusted for the disposal of operations in Iberia in 2020 (hydro in Portugal and Castejon CCGT and B2C supply in Spain) and by one-off impacts*, recurring net profit fell 15% YoY, to €326m in 1H21, driven by adverse weather effects on US renewables and the weaker performance of energy management which was partly mitigated by integration of Viesgo and strong performance of our hydro and supply operations.

1. Adjustments and non-recurring items impact at net profit level: (i) -€67m in 1H20, including the adjustment for the net profit contribution of 6 hydro plants in Portugal and Castejon CCGT and B2C supply sold in December 2020 (+€66m), early shutdown of Sines (-€89M) and one-off liability management cost (-€45m); (ii) +17m in 1H21, including the net gain from CIDE disposal and curtailment costs in Spain

(1) Includes unwinding of medium, long term liabilities (TEIs, IFRS-16, dismantling & decommissioning provision for generation assets, concessions) and interest on medical care and pension fund liabilities.

- 4 -

Investment activity

	Capex (€ million)		1H21	1H20	∆ %	∆ Abs.
	Expansion	1,150	732	57%	+418
	Renewables	970	592	64%	+379
	Electricity Networks	156	128	22%	+28
	CS&EM and Other	24	13	-	+11
	Maintenance	243	188	30%	+56
	Renewables	8	9	-13%	-1
	Electricity Networks	175	130	34%	+45
	CS&EM and Other	60	48	25%	+12
	Consolidated Capex	1,393	920	51%	+473
	94% of Capex in the Energy Transition
	Net expansion activity (€ million)		1H21	1H20	∆ %	∆ Abs.
	Expansion Capex	1,150	732	57%	+418
	Financial investments	230	334	-31%	-105
	Proceeds Asset rotation	(496)	(477)	-4%	-19
	Proceeds from TEI in US	(0)	(132)	100%	+132
	Acquisitions and disposals	(40)	(7)	-505%	-34

1Q20	2Q20	3Q20	4Q20	1Q21	2Q21	3Q21	4Q21		CAPEX 1H21
341	391	716	953	464	686		-	-	Other	Portugal
271	320	639	871	381	589		-	-
	16% 19%
65	63	71	91	74	80		-	-
5	8	7	(10)	9	17		-	-		€1.4 bn 9% Spain
84	103	116	205	111	132		-	-	Brazil 22%
5	4	7	18	3	5		-	-
57	75	80	121	75	100		-	-		35%
23	24	29	65	34	27		-	-
										North America
425	494	832	1,157	576	817		-	-

Gross investments, including Consolidated Capex and Financial Investments, increased 29% YoY to €1.6Bn in 1H21, of which 95% allocated to renewables and electricity networks activities, fully aligned with the energy transition.

Consolidated capex increased 51% to €1.4 bn in 1H21, 94% of which dedicated to renewables and electricity networks. EDP expansion capex increased 57% to €1.2 bn, accounting for 83% of total capex.

Financial investments in 1H21 (€230m) were entirely concentrated in renewables, namely: (i) wind onshore projects (€96m), (ii) wind offshore related to our 50% equity stake in Ocean Winds (€79m) and (iii) Solar Decentralized Generation (€52m).

Maintenance capex in 1H21 (€243m) was mostly dedicated to our electricity networks business (72% of total), namely in Spain with a significant contribution from Viesgo's integration, and in Portugal, where the roll out of digitalisation continues, with 5.3M smart meters deployed, which corresponds to a 38% increase YoY.

Other (1)

986

347

184%

+639

Net expansion activity

Investment activity in 1H21

(€ million)
230	243			945
		230
		496
					1,829
1,393		1,150
Gross Investment	Maintenance	Expansion	Asset rotation	Other (3)	Net expansion
(2)					Investment

Expansion investments (expansion capex + financial investment) in 1H21 increased 29% to €1.4 bn, largely dedicated to renewables globally (~86%):

1. €1.2 bn investment in new renewable capacity (+29% YoY) was distributed between North America (47%), Europe (41%) and Latam & others (12%). (details on page 10).
2. €156m investment in networks in Brazil (+22% YoY, in Euros, including the adverse FX impact). In local currency, transmission capex increased 48% while capex in distribution increased by 44% YoY, namely due to the roll-out of transmission lines and grid expansion and improving quality of service in both concessions.

All in all, net expansion activity investment increased strongly to €1.8 bn in 1H21 (+€1 bn YoY, vs. €0.8 bn in 1H20), due to (i) the acceleration of the build out activity (+€0.3 bn YoY); (ii) lower TEI proceeds in the US in 1H21; (iii) anticipation of bill payments to fixed assets' suppliers (+€0.6Bn YoY) aiming to optimise treasury management in the context of high financial liquidity and low short term interest rates.

(1) Includes Proceeds from Change in WC Fixed asset suppliers, change in consolidation perimeter, reclassification of asset rotation gains and other; (2) Includes Capex and Financial investment; (3) Includes the items "other" and "acquisitions and disposals".

- 5 -