Investors Presentation - January 2020 - EDP Renewables

 
Investors Presentation

January 2020

               CONFIDENTIAL AND PROPRIETARY
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                                                                                                                    -2-
Agenda

1    Our Execution
2    Our Sector
3    EDP Group vision
4    Our Strategy
5    Annex

                        -3-
Our execution

     -4-
EDPR has successfully executed its 2016-20 strategic agenda…

          Selective growth                                Self-funding                        Operational excellence
                         Presented in May-2016                        Presented in May-2016                       Presented in May-2016

    3.5 GW                                       up to €1.1bn                                 -1% Core Opex/MW
    2016-20                                      proceeds from assets sale                    CAGR 2015-20

    Prioritize quality investments               Sale of stakes to keep enhancing             Unique O&M strategy to keep
    in our core markets                          value growth                                 lowering Core Opex/MW

    4.0 GW secured                               €1.1bn cashed-in                             -2% Core Opex/MW
    for 2016-20,                                 EU assets asset rotation (2016), offshore    CAGR 2015-18
    of which 2.2 GW already built                stakes & Sell-Down (Dec-18)                  delivering 2020 target in 2018

                                                                  -5-
…delivering 2 years in advance and above target at the bottom-line

      EBITDA evolution1                                                                            Net Profit evolution2
      €bn                                                                                          €bn

                                         +7%                                                                              +43%
                                    CAGR 15-18                                                                        CAGR 15-18
                                                                                                                                      €0.3bn     €0.3bn
                                                                         €1.55bn
                                        €1.3bn           €1.3bn                                                             €0.2bn
                      €1.06bn
                                                                                                                 €0.1bn

                         2015            2018            2018              2020                                  2015        2018     2018        2020
                                        Target           Actual           Target                                            Target    Actual     Target

           EBITDA increasing at 7% CAGR vs 2015, despite unexpected                               …which along with financial results improvements and gains, allowed
            regulatory adjustments and lower 2018 wind-resource…                                  EDPR to deliver more than €300m of net profit in 2018 vs target 2020

(1) Considers 2015 Adj EBITDA of €1.06bn; (2) Post-2015 considers useful life at 30 years
                                                                                            -6-
Our sector

    -7-
EDPR operates in a sector with an increased competitiveness
  and solid outlook…

  Wind and Solar are already cost competitive…                                                                     …which along with solid fundamentals are driving demand across regions2
  2018 LCOE1 [€/MWh]                                                                                                                                                                                                                      2019-22E additions

                                                                           CAGR                                                           • US: PTC phase-out; Increasing demand
                                                                           18-25                          North America                     drivers at State, Utility and C&I;
                                                                                                                                                                                                                                                +67 GW
                                                                                                                                          • CA: demand supported by auctions (20-yr FiT)                                               >50% wind; >80% US
Nuclear                                                        91            -%
                                                                                                                                          • RES Targets & new governance based on EU
                                                                                                                Europe                      coordination;
                                                                                                                                                                                                                                                +84 GW
    Coal                                                       89           +1%                                                                                                                                                      >70% wind;
…with high expected growth across regions and technologies,
with >60 GW avg per year until 2030

  Expected renewables total installed capacity by region1…                                       ...and per technology
Total installed GW; wind onshore, offshore & solar utilities                                      Total installed GW; wind onshore, offshore & solar utilities
                                                                                        1,250                                                                                  1,250
                                                                                1,187                                                                                  1,187
                                                                        1,123                                                                                  1,123
                                                                1,059                                                                                  1,059
                                                          995                                                                                    995                            395
                                                    932                                                                                    932                          371
                                              871                                                                                    871                        348
                                        814                                                                                    814                      324
                                  744                                                                                    744                     301
                                                                                         61                                                278                                  91
                       678                                                       56                                678               255                                84
                                                                         50                                                                                     77
              611                                                45                                          611               234                      68
                                                          40                                                             202                     61
     542                                            34                                                 542                                 54
                                        28    31                                                                   173               46
                                                                                                             145               40
                                  24                                             451     470                             33
                         20                                      411     432                           119         28
                18                                  367   389                                                23
       16                               322   344                                                      19
                                  298                                                                                                                                   732     764
                        276                                                                                                                             666     699
               253                                                                                                                         601   633
      231                                                                                                                509   541   570
                                                                                                             443   476
                                                                                                       404
                                        231   235   242   249    257     265     275     285
      168      188      203       216

    2019 20             21        22    23    24    25    26     27      28      29 2030              2019 20      21    22    23    24    25    26     27      28      29 2030

                                              >60 GW                                                                                 >60 GW
                                              avg year                                                                               avg year

(1) Source: IHS; excludes China
                                                                                                -9-
EDP Group vision

       - 10 -
EDP envisions to keep capitalising on a winning sector…

  EDP is already a global leading renewables player1…                                ...and aims to strongly increase renewables weight
                                                                                     Source of generated electricity, TWh
                           ~21 GW
                           of renewables capacity2 deployed worldwide                                                              Non-renewables
                               Top global wind player with ~12 GW
                               >9 GW in hydro, of which 4.3 GW with reservoirs,
                               and ~3 GW pumped hydro

                                                                                                                            >90%   Renewables
                           >€20 Bn                                                                                  >70%
                                                                                                       66%
                           deployed in renewables since 2006
                               75% in wind onshore                                         20%
                               40% in the US
                                                                                           2005        2018          2022   2030

(1) As of March 2019 (2) EBITDA + Equity GWs
                                                                                  - 11 -
…and is committed to accelerate EDPR growth in the new
Business Plan 2019-22

  EDP Group total investments…       …to accelerate under new strategic plan…                      …with strong focus in renewables
            €bn; 2016-18                       Investments; €bn per year                                           €bn; %

                                                                         2.9
                                                +60%                                  Hydro, Networks;
                                                                                      Client solutions &
                                               1.8                                        energy mgmt.
              €5.7bn                                                                                              ~€12bn
              2016-18       ~60%
                                                                                                                2019-2022
                                                                                                                              ~70%
                                                                                                                                     EDPR
                                         2016-20 targets            2019-22 targets

    EDPR is the main growth driver             EDP group to accelerate its                          EDPR continues to be the growth driver
     of EDP, representing already            growth plan, increasing annual                          of EDP, with new strategy planned to
        ~35% of group EBITDA                investments under new strategy                           unlock EDPR development capabilites

                                                           - 12 -
Our strategy

     - 13 -
EDPR is one of the largest wind energy producer, with a 10.7 GW
portfolio…

                                                       Canada                     30
                                                                                  MW

                                                                                                                                         UK
                                                                 US
                                                                                                                                                                                Poland
                                                       5,592                                                                        Offshore
                                                                                                                                     under
                                                                                                                                     constr.       project
                                                       MW                                Offshore                                                  under                       418
                                                                                          under                                                    constr.
                                                                                         develop.                                                                              MW
                                                           200
                                                                                                                         Offshore       53
                                                           MW                                                             under                              Belgium
                                                                                                                         develop.       MW                                                  Romania
                                              Mexico                                                                                            France
                                                                Onshore
                                                                 under                                                                                                            521
                                                                develop.        Colombia                      Portugal
                                                                                                                                                                       Italy      MW
                                                           Brazil                                                 1,164
                                                                                                                  MW                           Spain              271                     project
                                                                                                                                                                  MW                      under
                                                          330                                                                                                                            develop.
                                                                                                                                               2,120                           Greece
                                                          MW
                                                                                                                                               MW

As of Sep-19: Installed capacity includes EDPR’s Equity consolidated: 152 MW in Spain and 259 MW in the US;
Includes 145 MW of Solar PV and the deconsolidation of 137 MW in Brazil from Sell-down announced in 2H19             - 14 -
…and has defined a new BP 2019-22 based on the same pillars and
complemented by an expanded growth and sell-down model…

                       Selective growth                                             Self-funding                                Operational excellence
                                                             2019-22E                                        2019-22E                                           2019-22E

               Solid value creation, investing in quality                    …enhanced by selling assets’ stakes,                   …and supported by distinctive
                      projects with predictable                               crystalizing value and accelerate                        core competences &
                         cash-flow stream…                                             value creation…                                   unique know-how

                 ~ 7.0 GW cumulative build-out                               > €8.0 bn of investments                            33% load factor in 2022
                 of which 74% already secured                                financed by sell-down & assets’ cash flow           from additions of competitive projects

                 Geographical diversified:                                   > €4.0 bn of sell-down proceeds                     > 97.5% availability
                 60% NA; 20% EU; 20% BR & New                                of which ~€1.3bn already announced                  technical expertise to maximise output

                 Technological diversified:                                  €4.0 bn of net investments                          Core Opex/MW -1% CAGR 18-221
                 70% wind onshore; 25% solar; 5% offshore                    fully financed by assets’ CF generation             from efficient O&M strategy

                                        …unlocking EDPR’s full capabilities, by leveraging on core competences and by crystalizing upfront value

(1) Core Opex defined as Supplies & Services and Personnel Costs
                                                                                            - 15 -
Selective growth: a 7 GW growth plan increasing geographical and
technological diversification

Capacity Build-out by region                                                                                        Capacity Build-out by technology
(GW; 2019-22)                                                                                                       (GW; 2019-22)

                                                                                                                             with CoD until 2022;
                                                                                                                            excludes projects under
                                Other markets                                                                                    development1
                                                                        North America (60%)                                                                 Wind Onshore – 3.9 GW secured
                                                                        Driven by RPS, C&I and coal/nuclear                                                 A competitive technology, in
                  10%                                                   retirements; EDPR has already                                                       which EDPR has competitive
                                                                        secured 2.8 GW all with LT contracts                                                advantage and know-how
          10%                                                                                                                  5%

                 ~7.0 GW                                                Europe (20%)                                                 ~7.0 GW          70%
          1.8 GW avg/year 60%                                                                                              25% 1.8 GW avg/year              Solar PV – 1.1 GW secured
                                                                        Supported by governance & PPA
      20%                                                                                                                                                   Increasing competitiveness, and
                                                                        appetite; EDPR has secured 1.0 GW
                                                                                                                                                            relevance in EDPR technological
                                                                        wind/solar & 0.3 GW offshore
                                                                                                                                                            mix post-2020

                                                                        Brazil (10%) & Other (10%)
                                                                        BR: auctions/PPAs & stable                                                          Wind Offshore – 0.3 GW secured1
    of which 74% already secured                                        regulation (EDPR has 0.6 GW                          projects with long-term        EDPR & ENGIE JV set to strengthen
   through PPAs or tariffs awarded                                      secured); New: Greece (0.1 GW);                     visibility & low risk profile   company’s profitable offshore
                                                                        Colombia (0.5 GW)                                                                   growth and increase efficiency
                                                                        Other: being analysed

(1) Includes UK (Moray East; 33% of 950 MW); Floating FR (35% 24 MW); Floating PT (54% of 25 MW);
Excludes FR (30% of 992 MW) and projects u/dev. (US Mayflower, UK Moray West and other under EDPR/ENGIE JV)    - 16 -
Selective growth: North America as the main market with 4.2 GW
target of which 2.8 GW already secured…

              Projects already secured                         US Demand driven by increasing                                Build-out capacity breakdown
              MW                                               cost-competitiveness                                          GW

 Project Name                    MW    Region    CoD
      Prairie Queen              199    Kansas    2019E
      Timber Road IV             125      Ohio    2019E
      Bright Stalk               205     Illinois 2019E                                                                          under                          2019
                                                                                 • Defined at state level
      Hidalgo II                  50      Texas   2019E             RPS          • RPS policies cover 56% of total US      negotiation/                   0.7              2.8 GW
                                                                29 states + DC     retail electricity sales                  identified
      Nation Rise (CA)           100    Ontario   2019E
                                                                                                                                          1.3                              already
      Broadlands I               200     Illinois 2020E                                                                                                                    secured
      Headwaters II              198    Indiana   2020E
      Rosewater1                 102    Indiana   2020E                          • Coal (23% fleet): old & non-compliant                         4.2 GW
                                                                Retirements        w/environmental;
      Crossing Trails            104   Colorado 2020E           Coal & Nuclear   • Nuclear: ~15 GW proposed until 2030                                            1.1
      Reloj del Sol              209      Texas   2020E                                                                                                                 2020
      WildCat                    180      Texas   2020E                                                                                    0.4
      Mexico project             100    Mexico    2021E                                                                             2022
                                                                                 • Renewable demand from RE100                                    0.6
      Indiana Crossroad1         302    Indiana   2021E           C&I PPAs         companies is to grow to 123 TWh by
      Riverstart                 202    Indiana   2021E         >6 GW in 2018      2022, 59% over 2017 levels                                     2021
      Sonrisa                    200   California 2022E
      California Project         200   California 2022E
      Golden Eye                 139    East NA 19/20E

                                                          …and 1.3 GW to be secured in a competitive environment

(1) Build and Transfer project
                                                                                       - 17 -
Selective growth: Europe supported by new governance model
and increasing appetite for private PPAs…

  Projects already secured                                 EDPR strategy per market                        Build-out capacity breakdown
  MW                                                                                                       GW

Country   MW        Status        CoD
                                                                                                                                                          1.0 GW
                                                    Projects’ develop./ promotion                                                       2019
           29   U/ construction 2019E                                                                                                                     already
          105   U/development 2021/22E              Increasing relevance of Private PPAs                                          0.1                     secured
                                                                                                               under
                                                                                                         negotiation/
           47       Installed      2019             Concluding Ventinveste, OE & solar projects                         0.4
                                                                                                           identified                          0.2 2020
          279   U/ const. & dev. 2020/22E           Develop pipeline for future growth

          19        Installed      2019             Obtain permits for an identified projects                                 1.4 GW
          95    U/ const. & dev. 2019/20E           Develop wind & solar projects

          50    U/ const. & dev. 2019               Preparing projects for new auctions
          16    U/development 2019/20E              Secure Private PPAs & Green-field

                                                    Preparing and optimizing projects                                             0.7
           38   U/construction 2020E
                                                    Projects for new auctions; developing wind & solar                                  2021/22
          327   U/ development 2020/22E

                             …with 1.0 GW already secured and 0.4 GW to be secured on both wind and solar technology

                                                                            - 18 -
Selective growth: Brazil set to increase its representativeness,
while continuing to analyse new markets opportunities

    Developing portfolio of competitive projects                                        Others: Selecting investment opportunities
    with tariffs already secured                                                        In countries with strong long-term fundamental
                                                                 10%                                                                            10%
                    0.1 GW                                                      Analyzing new profitable markets to increase potential growth:
    Boqueirao & Monte Verde 0.5 GW Monte Verde &
                 CoD: 2022 Jerusalem CoD: post-2022                                   Strong fundamentals:
                                    0.1 GW Catanduba                                  renewable demand & good natural resources
            0.1 GW                                                                    From wind and solar resources
                                    CoD: post-2022
            Aventura
           CoD: 2022                 0.2 GW Santa Rosa & Mundo                        Competitive advantages:
                                     Novo CoD: 2022                                   implementing our know-how in markets not yet matured
                                                                                      taking advantage of being pioneers
                                      0.2 GW
                                   Pereira Barreto                                    Profitable:
                                     CoD: 2021                                        long-term contracts and predictable cash-flow
                                                                                      Auction system and or private PPAs
                                              1.2 GW
                                          portfolio with PPAs
                                                                                      Greece:
                                      already awarded of which
                                                                                      Executing projects awarded (45 MW in 2020 & 77 MW in 2021/22)
                                          0.6 GW until 2022
      Competitive projects with         and 0.6 GW post-2022
                                                                                      Colombia:
       >50% load factor (wind)                                                        Executing projects awarded (492 MW in 2022)

                                                                       - 19 -
Selective growth: Creating EDPR/ENGIE 50:50 joint-venture to focus
on a fastest growing renewable technology

      Expected wind offshore global          Combination of the right set of skills           …and a EDPR/ENGIE 50:50 control
           installed capacity1               along with a successful track record…           structure with the right governance
                                                                                                                                            Portfolio of
                                                                                                                                            5.2 GW
                                                                                                                                           (~3.3 GW net)
                                                     Energy management and offtake
                                                                                                  CEO and COO: 3-yr mandates
            +15%
            CAGR                                     Project management                                                                  New opportunities

                                  91
                                                                                                                                          being screened
                                                     Business development
                                                                                           Initial CEO proposed by EDPR & COO by ENGIE
        19                         GW
        GW                                           Energy and risk assessment
                                                                                                                                           JV operational
                                                                                                                                          until 2019 YE
                                                     Procurement                           At the end of mandate, COO becomes CEO and
     2019E                        2030E                                                         the other partner proposes new COO

              Towards a leadership position by combining complementary competences to accelerate growth, minimize risks and increase efficiency

(1) Source: IHS; excludes China
                                                                                  - 20 -
Selective growth: Full integrated JV with 5.2 GW1 of pre-determined
offshore wind assets

                   PROJECT NAME                                 TYPE                                CAPACITY               COUNTRY       EDPR              ENGIE           STATUS

                   Moray East                                   Offshore-Fixed                        950 MW                             33.3%              23.3%          U/Construction

                   Tréport & Noirmoutier                        Offshore-Fixed                        992 MW                             29.5%              31.0%          U/Development

                   Moray West                                   Offshore-Fixed                     800-950 MW                            67.0%              33.0%          U/Development

                   Wind Float Atlantic                          Offshore-Floating                      25 MW                             54.4%              25.0%          U/Construction

                   Leucate                                      Offshore-Floating                      30 MW                             35.0%              45.0%          U/Development

                   SeaMade                                      Offshore-Fixed                        487 MW                               -                17.5%          U/Construction

                   Mayflower2                                   Offshore-Fixed                        804 MW                             50.0%                -            U/Development

                   B&C Wind                                     Offshore-Fixed                        400 MW                            100.0%                -            U/Development

                   Total ownership with tariffs/PPAs (net MW)                                                                          1,035 MW            634 MW             1,669 MW
                                                                                                                                                      +                =
                   Total ownership (net MW)                                                                                          2,237-2,338 MW       898-947 MW       3,135-3,285 MW

                                     Offshore partners since 2013, with 1.5 GW of projects under construction and 3.3 GW of projects awarded

(1) Gross MW; equivalent to c.3.3 GW net; (2) Considers Mayflower lease up to 1.3 GW .   Projects with tariffs/PPAs
awarded                                                                                                               - 21 -
Selective growth: Together a portfolio of 5.2 GW1 initial capacity
across 6 markets and defined growth targets

                                                                                              with tariff awarded

                                           Moray East             SeaMade                B&C Wind
                                           950 MW                 487 MW                 400 MW
                                           Status: Construction   Status: Construction   Status: Development
                                           JV Stake: 56.6%        JV Stake: 17.5%        JV Stake: 100.0%
                                           CoD: 4Q 2022E          CoD: 4Q 2020E          CoD: post-2025

                                           Moray West                                    Tréport & Noirmoutier
                                           800-950 MW                                    992 MW
                                           Status: Development                           Status: Development
                                           JV Stake: 100%                                JV Stake: 60.5%
                                           CoD: post-2022                                CoD: 2023/24E

                                           Mayflower
                                           804 MW
                                           Status: Development
                                           JV Stake: 50.0%
                                           CoD: post-2022                                Leucate (floating)
                                                                                         30 MW
                                                                                         Status: Development
                                           WFA (floating)                                JV Stake: 80.0%
                                           25 MW                                         CoD: 2021E
                                           Status: Construction
                                           JV Stake: 79.4%
                                           CoD: 2019E

(1) Gross MW; equivalent to c.3.3 GW net
                                                         - 22 -
Selective growth: The Offshore JV has a clear investment framework
and selective yet ambitious growth targets

     50:50 JV with selective investment criteria                                                          JV Growth Targets
                                                                                                          Gross MW

            Sound market fundamentals                                                                                   1.5     5-7     Operational
                                                                                                                                        & Under construction
                                                                                                                        GW1     GW
            Stable regulatory frameworks

            Contracted NPV (i.e. cash-flows visibility)

            Compliance with target risk return profile                                                                  ~4.0    5-10    Under advanced
                                                                                                                        GW1     GW      development
            Maximize projects self-funding

                                                                                                                        Today   2025E

                        This JV is set to pave the way for a greener future, by strengthening offshore growth, increasing efficiency and returns

(1) Gross MW; 1.5 GW Under construction equivalent to 0.6 net GW and ~4.0 GW Under advanced development
equivalent to ~2.6 net GW                                                                                      - 23 -
Sell-down strategy: set to create extra value through the sale of
majority stakes, without increasing capital employed

             Sell-down strategy rational…                        …to propelled extra-growth & value…                       …and extra-value

         (incremental value created at project execution)             (Benefits of the Sell-down strategy)           (Sell-down: Sale majority stakes)

                                                                                                                                                   (2019-22)
 Value

                                                                              Capital recycle
                                                                   up-front cash-flows crystallization by
                                                                          selling majority stakes             Sell-downs              ~50% of 7 GW
                                               Build to Sell                                                  (capacity)
                                                                              Value Creation
                                                                   gains accounted in P&L and proceeds
                                                                   to be re-invested in accretive growth      Proceeds                 > €4bn
                                               To own
                                                                                                              (Equity & Debt)
                                               (value captured
                                               throughout                      Service charge
                                               30-yr life)         providing operating and maintenance
                                                                 services in exchange for management fee       Visible value creation in Net Profit
     Year 1 Year 2 Year 3 Year 4

                 Less capital intensive                          Recycling capital and creating value        ~€0.7bn of Capital gains in 2019-22

                                                                                    - 24 -
…with €1.1bn Sell-down transactions announced, crystalizing value
and accelerating value creation

          Sell-down transaction announced1                                                                                                                                      Rationale2

                           Scope              Assets age                 Status              Proceeds                 EV/MW           Capital Gains                                           7-11%
                                                  (average)                                                                        (pre-tax; booked in EBITDA)         4-5%       spread

                         997 MW                       8                 Closed                €0.8bn                  €1.6m               €226m
                      491 net MW                   years                  3Q19                                        per MW       (eq. to €0.4m/MW)
                                                                                                                                                                                           high 10s%
                                                                                                                                                                   low-mid 10s%   spread

                         137 MW                       1                Pending                €0.3bn                  €2.2m                  n.a.
                      137 net MW                    year                 4Q19E                                        per MW                (n.a.)
                                                                                                                                                                       IRR                      IRR
                                                                                                                                                                      Selling                Re-investing

                          Sell-down of EDPR’s full equity in two onshore wind portfolios executing its                                                           …capturing value created & propelling new
                          2019-22 target of >€4.0bn proceeds, with €1.3bn to be concluded in 2H19…                                                                projects execution with superior returns

                    Creating extra value through the sale of majority stakes, without increasing capital employed, and re-investing at higher returns

(1) subject to customary closing adjustment; (2) Illustrative and non-exhaustive; Reinvesting IRR at 7-11% excludes
Brazilian projects                                                                                                        - 25 -
Operational excellence: EDPR core competences and unique
know-how set to maximize efficiency

     Wind assessment know-how                            …and highly experienced teams                      …set to maximize efficiency
      to maximize asset value…                          delivering unique O&M strategy…                         and optimize costs

                                                          O&M contract breakdown (avg MW;%)                      Core Opex/ avg. MW

              New MW with above average                 optimizing O&M activities by increasing
     33%      load-factor                                 internalization at the end of initial                            -1%
     NCF
              vs 2018: 30% (94% P50)                              contract warranty                                       CAGR

              Predictive maintenance and
    >97.5%    O&M strategy are key to               Full scope
     TEA                                             contracts
              reduce downtime

                                                         M3 &
                                                                 52%               60%
              Driven by accretive                 Self-perform
   +7% GWh    contributions from new
     CAGR
              capacity additions                                 2018             2022E                           2018            2022

       In addition to saving programs and initiatives (e.g. OBZ, OPEX V and US Cost Reduction Program) in place to increase efficiency

                                                                        - 26 -
EDPR’s 2022 agenda and the 3 strategic pillars will unlock our full
capabilities…

                                                           Growth:
                                                           increasing EDPR own portfolio at a faster pace…

                         Operational excellence            Sell-down:
                                                           …given extra-visible value generated to speed-up growth…

   Selective growth
                                                           Diversified:
                                                           …with technological & geo mix (new markets momentum)…

                      Self-funding                         O&M know-how:
                                                           …propelled by assets’ management core competences…

                                                           Efficiency mind-set:
                                                           …and cost-control focus and saving programs implementation

                                                  - 27 -
…to deliver solid and ambitious growth targets through 2022…

      Capacity build-out               Excellence in operations       Less capital intensive       Excel at operational results      Unlocking bottom-line

                  MW                             TWh                       Sell-down                         EBITDA                        Net Profit

       New capacity being                 From MW to own with          Generating extra value         From capacity additions,     From growth, recurrent capital
        technological &                output propelled by superior     without increasing            operating efficiency and      gains, controlled cost of debt
     geographical diversified            load-factor & availability      capital employed                sell-down strategy            and solid balance sheet

                            2019-22E                       2018-22E                     2019-22E                        2018-22E                         2018-22E

             ~7.0 GW1                      +7% CAGR TWh                >€4.0bn proceeds                    +6% CAGR                        +11% CAGR

                                        …positioning EDPR to successfully lead a sector with increased worldwide relevance

(1) Of which ~50% to own.
                                                                               - 28 -
Annex

 - 29 -
9M 2019 Results

      - 30 -
EDPR operational performance on track to deliver solid growth, along with the execution of
      Sell-down strategy

                             Quality                                                                   Selective and                                    Self-funding
                             assets                                                                  profitable growth                                    business

              30% load factor (vs. 30% in 9M18)                                                     +344 MW built YTD                              €1.0bn of Sell-down YTD
               96% of LT avg. with 3Q19 @ 98%                                                       1,156 MW Sold-out                          from EU (491 net MW; €0.8bn) &
             Availability @ 97% (vs 97% in 9M18)                                             1,164 MW already under construction               US sell-down tax-equity proceeds

        Revenues at €1,364m (+10% YoY; +€125m)                                                                                                   €63m Net Debt & TEI decrease
                                                                                        Already secured c.70% of ~7.0 GW cumulative
        MWs (+€46m), Price (+€49m), NCF (+€11m),                                                                                              from growth & investments, keeping
                                                                                                   19-22 build-out target
              PTCs (-€27m) and FX (+€34m)                                                                                                             solid balance sheet

             Adj. Core Opex/ avg. MW flat YoY(1)                                                €1,218m EBITDA (+40% YoY)                    Optimizing Cost of Debt and TEI Costs
                   given cost control in the                                         including €226m from 491 net MW Sell-down gain     Debt: 4.0% Sep-19 (+0.1pp YoY; on different mix);
                 context of a growth strategy                                                      (+36% YoY ex-IFRS16)                                  Avg TEI: 6.7%

              96% of Revenues fixed for 2019(2)                                            Net Profit €342m (vs €115m in 9M18)                 Operating Cash Flow(2) at €838m
               €56/MWh avg. price (+5% YoY)                                           on top-line performance and Sell-down execution         +9% YoY from top line performance

(1) Core Opex per average MW adjusted by IFRS16, offshore costs (mainly cross-charged to projects’ SPVs), one offs and FX
(2) at Sep-2019                                                                                                 - 31 -
EDPR built 344 MW YoY reaching 10.8 GW after Sell-down transactions

                                       MW                 Under                                Evolution of Installed Capacity(1)
                                     Built YTD         Construction                            (EBITDA MW + Equity Consolidated)

                                      +199 MW             +680 MW2
                                                                                                                         12,016

                                                                                                                  344
                                                                                                   11,672
                                      +145 MW              +154 MW
                                                                                                                                      (1,156)

                                            -                    -
                                                                                                                                                      10,860                  10,836
                                                                                                                                                                  (24)
                                                                                                                                                                                 54%
                                            -             +330 MW3                                                                • US: PQ (80% of
                                                                                                                                    199 MW; 3Q19)                                42%
                                                                                                                                  • EU: 997 MW (Net                              4%
                                     +344 MW            +1,164 MW                                                                   491 MW; Jul-19)

                                                                                                  Dec-18      MW Built               Sell-down        Sep-19   Re-powering   Portfolio

                              YTD EDPR built 344 MW, sold 1,156 MW and kept 1,164 MW under construction (including stake in UK offshore)
(1) Incl. equity consolidated: 152 MW in Spain & 259 MW in the US;
(2)Bright Stalk (205 MW), Broadlands (200 MW), Timber Road IV (125 MW), Hidalgo II (50 MW) and Nation
  Rise (100 MW) on which an 80% stake was sold in Dec-18 (keeping the responsibility to build the project);
(3) Includes 316 MW of EDPR stake in UK Moray and 14 MW from Windplus floating in Portugal                    - 32 -
In the 9M19 EDPR achieved a 30% load factor (vs 30% in 9M18) reflecting 96% of
      P50 (long term average for 9M)…

                         Load Factor and Technical Availability(1)                                  EDPR Quarterly Load Factor vs. Long-term average
                                                                                                    (%)                                         2018   2019

                                          9M19           ∆ YoY      9M19 vs. LT avg.
                                                                                                       +5%

                                          26%            +1pp        99%                                                                                -

                                                                     95%
                                                                                                                           -1%           -2%
                                          33%            -1 pp

                                                                                                             -7%     -8%
                                          41%            +1 pp       89%
                                                                                                                                  -11%          -12%
                                          30%            +1 pp       96%                                  1Q            2Q              3Q         4Q

               EDPR                       96.9%
            Availability1                                -0.1 pp

                                                       …while in the 3Q19, EDPR reached a 25% load factor (vs 22% in the 3Q18),
                                                with QoQ comparison benefitting from higher wind resource (P50 of 98% vs 89% in 3Q18)

(1) Technical Energy Availability (TEA)                                                 - 33 -
Electricity output higher 6% YoY, with capacity additions over the period and load
factor offsetting impact from EU assets deconsolidation
                                                                    Electricity Production
         TWh                                                        (TWh)
        % YoY
                   Driven by new capacity and higher
                   wind resource (despite the                                               +6%
                                                                                            +5%
          +4%      deconsolidation of 977 MW in Jul-19
                   related to the EU portfolio Sell-                                                          21.9
                   down)                                                20.7                      +0.2
                                                                                     +1.0

                   From new installed capacity,
          +4%      offsetting lower wind resource

                   Driven by capacity additions and
         +50%      higher wind resource
                                                                       9M18         ∆ MW      ∆ Load Factor   9M19

                 EDPR produced 21.9 TWh of clean electricity (+6% YoY), avoiding 15 mt of CO2 emissions
                 Geographical output breakdown: 55% in North America, 39% in Europe and 6% in Brazil

                                                          - 34 -
Avg. price at €56/MWh (+5% YoY) mainly driven by Eastern Europe price recovery,
      higher prices in Spain, US and Brazil, along with favorable FX translation

                                                                                                 EDPR Price Evolution
                           9M19 %      YoY(1)                                                   (€/MWh)

                                                 SP higher price +4% (higher realised
                                                 price); RoE +7% (mainly due to RO &
                           €80.0      +3%        PL recovery);                                                          +5%
                                                 PT -2% (from new additions)
                                                                                                           €53.7                €56.1
                                                                                                                   +3% ex-fx
                                                 US (+2%): primarily due to new
                                                 MWs in operation
                           $46.3      +1%        CAN (-3%): +1% in local currency
                                                 MX: (+1%) from PPA @$65

                                                 Different mix of a new wind farm in
                           R$205      +6%        operation vs 9M18 & inflation linked
                                                                                                           9M18                 9M19

                                   Average selling price totalled €56/MWh (+5% YoY), on the back of positive price performance and FX

(1) Calculated in local currency                                                        - 35 -
Revenues increased 10% YoY given higher avg. EBITDA MW (+3%), higher avg. price
(+5%) and positive forex, despite scheduled PTCs expiration
                                                                          Revenues
       Main drivers for Revenues performance                              (€ million)

   Higher output: +6% YoY; +€58m (NCF: +€11m; MW: +€46m)                                       +10%
                                                                                                            1,364
    from load factor and higher avg. MW (+3% YoY; including                        1,239     +7% ex-fx
        impact from deconsolidation of 997 MW in EU)

        Higher average selling price: +5% YoY; +€46m
            mainly driven by price recovery in Spain
                      and Rest of Europe

      Forex impact & scheduled 10 years PTCs expiring
              PTCs expiring (10-year life): -€27m
                   Impact from FX: +€34m                                           9M18                     9M19

          Revenues increased €125m mainly driven by capacity in operation (+€46m), higher price (+€49m), forex translation
                     (+€34m), slightly higher wind resource (+€11m) despite scheduled PTCs expiration (-€27m)

                                                                - 36 -
Core Opex per Avg. MW Flat YoY given O&M strategy and cost control offsetting
     the requirements needed to cope with Business Plan expanded growth
           Opex (excludes Other Operating Income) (1)
           (€ million)                                                                                       Core Opex/Avg. MW (€k)
                                                                                                             (Supplies & Services and Personnel Costs)

                                                  -3%
                                                reported
                                                                                                                                  31…
                                                 +5%
                                                                                                                                                         29.3
           Levies &                                                                IFRS 16 (€34m)
                                               ex-IFRS16
      Non-recurrent

         Core Opex(2)                                                                                                                        -6%
                                                 -3%                                                                                         Flat(3)
                                                                                                                                             adjusted
                                                 +7%
                                               ex-IFRS16

                              9M18                                9M19                                                          9M18                     9M19

                           Core Opex increasing YoY on the back of higher installed capacity while Adj. Core Opex/ Avg. MW was flat YoY
(1) Reported figures presented; for YoY analysis purposes, was included impact (€34m) from IFRS16
in 9M19; (2) Includes Supplies and Services and Personnel Costs; (3) Core Opex/avg MW adjusted by
IFRS16, offshore costs (mainly cross-charged to projects’ SPVs), one offs and FX                    - 37 -
Delivering EBITDA of €1,218m (+40% YoY) from the execution of Sell-down strategy,
     top line performance and IFRS16
           EBITDA YoY                                                                          EBITDA per Region(1)
           (€ million)                                                                         (%)

                                           +40%
                                                                                                                    Portugal
                                        +37% ex-fx                                                                    25%
                                                                      1,218
                                                           (13)
                                              +211                                                                                   RoE
               869            +125                                                                                                   13%

                                            Includes capital gain
                                           (€226m YoY) from
                                                                                                        Spain   €1,218m                Braz…

                                           Sell-down in EU                                               23%
                                           (997 MW; 491 net MW)

                                                                                                                     North America
              9M18                           Other     Operating   9M19
                           Revenues          Income        Cost                                                          36%

                                                                      EBITDA totalled €1,218m (+40% YoY),
                                                  being +36% YoY if excluded impacted from IFRS16 given top line performance

(1) Includes hedges from Spain, Rest of Europe and US                                - 38 -
Net Profit totaled €342m (+197%), with YoY comparison driven by top-line
performance and a Sell-down transaction
      9M19 EBITDA to Net Profit
      (€ million)

                                                                              €m YoY

                                                    1,218                               Operating performance driven by top-line &
       EBITDA                                                                 +€349m
                                                                                        gains related to Sell-down transaction

           D&A                                                 435             -€37m    Effect from YoY capacity additions and IFRS16

           EBIT                              784                              +€312m    As a result of top line performance

     Financial                                        277                               YoY comparison impacted higher avg. nominal
                                                                               -€59m
     Results(1)                                                                         Debt, IFRS16 and forex

          Taxes                                51                                       Effective Tax Rate of 10% in 9M19 (from tax
                                                                               -€26m
                                                                                        exempted capital gains; includes CESE)

                                             113                              +€0.5m    Reflecting top-line performance from strategic
   Minorities
                                                                                        partnership assets and asset rotation program

   Net Profit                      342             +197% YoY                   +227m    Net profit totalled €342m

(1) Includes Share of profit of associates                           - 39 -
Cash Flow generation with RCF at €636m, +8% higher YoY

            9M19: Retained Cash Flow (RCF) 1
            (€ million)

                  +40%
                  1,218
                                          (231)                                                                          +8%
                                                                  (18)                                                                          862
                                                                                         (251)
                                                                                                                (8…      636     226
                                           Includes the capital gain of
                                           the EU portfolio Sold-down;
                                           €226m cashed-in

                EBITDA             Non-operating              Current                  Interests,         Dividends &    RCF   Sell-down        RCF w/
                                  cash adjustments            income                  TEI, fees &         interests to           gains     Sell-down gains
                                                               taxes                  derivatives          Minorities

                               RCF(1) of €636m (vs €590m in 9M18) YoY propelled by operating performance and impacted by PTC 10-year
                                               expiration and higher interests on debt increase (following growth capex).

(1) Note that RCF includes tax benefits generated by the projects in the US under the TE structures,
which are not included in the Organic Free Cash-flow concept;                                          - 40 -
Solid balance sheet with Net debt and Tax Equity decreasing by €63m...

            2019 from RCF to Debt and TEI variance
            (€ million)                                                                                               9M19 Debt and TEI Breakdown (%)

               +8%

                                                                                                                                    7%
                                                                                                                        TEI                    Other
                                 (384)                                                                                €1.2bn                   & TEI
                636                                                                                                                63%         40%
                                                     (61)
                                                                       (127)                                           Gross
                                                                                                                       Debt                    Loans
                                                                                            63                                                with EDP
                                                                                                                      €3.6bn
                                                                                                                                   30%          60%
               RCF               Cash          Dividends to           Forex           Net Debt
                               Invest.(1)          EDPR              & Other           and TEI
                                               Shareholders                           decrease                      Debt & TEI   Currency       Type

                                                                          ...to €3.0bn of Net Debt and €1.2bn Tax Equity

(1) Cash investments include Capex (net of projects sold), Net financial investments and Changes in
working capital related with PPE suppliers and Government Grants                                      - 41 -
EBITDA performance benefitting from gain on Sell-down strategy execution…

EBITDA YoY variance walk by driver
(€ million)
                                                                                                               +40%
                                                                                                               YoY

                                      +4%                                                +35%

                                                                                                     226       1,218
                                                                                          82
       869                     34                25        900             11

                  (27)

               Scheduled                    Mainly USD

     9M18           PTC      IFRS16             Forex                     Load        Business     Sell-down   9M19
               phase-out                       Impact                     factor     performance    strategy

                                …along with MW additions, price recovery, fx and cost-control.

                                                             - 42 -
2019 is being a record year in terms of new investments execution, with +2.4 GW
  already secured…

  2019: Accelerating growth                                                  Project              Tech.   MW    CoD       Remuneration
  (GW secured in the period)                                                 Golden Eye           Solar   139   2019/20    PPA/LT Contract
                                                                             Marchéville          Wind    13     2020            CfD
                                                                             Rosewater            Wind    102    2020      Build & Transfer
                                                                             Crossing Trails      Wind    104    2020     PPA/LT Contract
1H       0.6                                                                 WildCat              Wind    180    2020     PPA/LT Contract
                                                                             Reloj del Sol        Wind    209    2020     PPA/LT Contract
                                     Jul-Oct 19                              Mexico Project       Wind    96     2021     PPA/LT Contract
                                                                             PPAs                 Wind    105   2021/22          PPA
                                                                             Indiana Crossroad    Wind    302    2021      Build & Transfer
2H                             1.8                                           Chalkodonio          Wind    29     2022          Auction
                                                                             Monte Verde VI       Wind    46     2022     PPA/LT Contract
                                                                             Boqueirao I-II       Wind    80     2022     PPA/LT Contract
                                                                             Ribatejo             Solar   142    2022          Auction
                                                                             California Project   Solar   200    2022     PPA/LT Contract
                                                                             Sonrisa              Solar   200    2022     PPA/LT Contract
YTD                                               2.4
                                                              New            Alpha                Wind    212    2022          Auction
                                                             Country         Beta                 Wind    280    2022          Auction

                                                   …for 2019-22 at attractive returns…

                                                                   - 43 -
…leading to c.70% of the ~7 GW target build-out capacity, already secured for
2019-22…

   Execution of ~7 GW build-out target…                  …with 4.9 GW of wind onshore, solar and offshore projects already secured

Build-out GW; Oct-19                             Build-out GW secured per COD
                                                                                             4.9 GW
 under
 negotiation/
 identified
                                                                                           +2.4 GW YTD                        1.8
                                                                                                                              0.3
                                                                                    1.3
                                                                                                         1.0                  0.5
                 ~7.0 GW                                      0.9
                1.8 GW avg/year                               0.1                                        0.4
                                                                                    1.3
                                                                                                                              0.9
                                                              0.7                                        0.6
                                   Secured
                           c.70%   MWs
                                                             2019                  2020                  2021                2022

                                             …being geographically and technologically diversified

                                                                      - 44 -
Conclusions

   9M19 YoY positive top-line performance benefitted from higher avg. capacity (+3% YoY) and price recovery (+5% YoY), mainly in Eastern Europe
along with higher realized price in Spain, US and Brazil. Adj. Core Opex/avg. MW was flat YoY, given cost control in the context of a growth strategy…

                                   …together with EDPR’s Sell-down strategy execution (€226m gain), lead to an
                      EBITDA of €1,218m (+40% YoY; +36% ex-IFRS16) and to a Net Profit of €342m (vs. €115m in the 9M18)…

  …additionally execution of EDPR’s new strategy is well on track with c.70% of the 7 GW capacity build-out secured (1.8 GW only in 2H19), being
    technologically & geographically diversified, creating an offshore JV, as well as €1.3bn out of ~€4.0bn Sell-down target already announced.

                                                                         - 45 -
a company of group

                     46
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