Historic Operational Indicators

EDPR	U N	1Q21	1Q20	1Q19	1Q18
WIND AND SOLAR INSTALLED CAPACITY
Installed Capacity	M W	11,747	10,676	11,339	10,676
Portugal	M W	1,238	1,164	1,355	1,253
Spain	M W	2,137	1,974	2,288	2,244
Rest of Europe	M W	1,441	1,263	1,667	1,564
North America	M W	6,495	5,944	5,562	5,284
Brazil	M W	436	331	467	331
Capacity under Construction	M W	2,629	964	354	1,042
Portugal	M W	125	6	0	55
Spain	M W	101	18	53	68
Rest of Europe	M W	632	130	102	103
North America	M W	832	809	199	679
Brazil	M W	939	0	0	137
Equity Installed Capacity 1	M W	711	550	371	331
Portugal	M W	31	0	0	0
Spain	M W	167	152	152	152
Rest of Europe	M W	43	0	0	0
North America	M W	471	398	219	179
Brazil	M W	0	0	0	0
Capacity under Construction MEP 1	M W	269	330	330	0
Portugal	M W	0	14	14	0
Rest of Europe	M W	269	316	316	0
WIND AND SOLAR NET ELECTRICITY GENERATION	GWh	8,120	7,762	8,412	8,763
Portugal	GWh	863	712	834	1,066
Spain	GWh	1,549	1,172	1,621	1,766
Rest of Europe	GWh	932	1,022	1,175	1,079
North America	GWh	4,551	4,695	4,467	4,694
Brazil	GWh	224	161	314	159
WIND AND SOLAR TECHNICAL AVAILABILITY		97	97	97	97
Portugal	%	98	98	98	99
Spain	%	96	94	97	96
Rest of Europe	%	98	98	98	98
North America	%	97	97	98	97
Brazil	%	97	97	98	98

Share of the M W installed in plants owned by companies equity consolidated

SUPPLY	U N	1Q21	1Q20	1Q19	1Q18
ELECTRICITY CUSTOMERS Portugal	'000 '000	8,599 4,961	9,796 5,105	9,804 5,200	9,854 5,329
Last Resort	'000	949	1,012	1,099	1,190
Liberalised Market	'000	4,012	4,094	4,101	4,139
Market Share EDP - Liberalised Market	%	n.a.	78	80	83
Spain	'000	22	1,165	1,151	1,134
Last Resort	'000	0	230	228	216
Liberalised Market	'000	22	935	924	919
Brazil	'000	3,616	3,525	3,453	3,390
Last Resort	'000	3,616	3,525	3,453	3,390
Liberalised Market	'000	0.5	0.3	0.4	0.3
Social Tariff	'000	909	799	804	880
Portugal	'000	588	600	612	661
Spain	'000	0	51	50	57
Brazil	'000 '000	321 1	148 1	142 3	162 1
Special Needs	'000	0	0	2	1
Portugal Brazil	'000	1	1	1	1
Green Tariff	'000	260	1,131	1,026	829
Portugal	'000	n.a.	73	3	3
Spain	'000	7	1,058	1,023	825
Brazil	'000	n.a.	n.a.	n.a.	n.a.
ELECTRICITY SUPPLIED	GWh	15,047	21,932	18,534	20,772
Portugal	GWh	5,360	5,399	5,539	5,896
Last Resort	GWh	680	692	790	863
Liberalised Market	GWh	4,681	4,707	4,749	5,032
Market Share EDP - Liberalised Market	%	n.a.	41	41	42
Spain	GWh	2,150	2,821	3,104	3,143
Last Resort	GWh	0	132	135	126
Liberalised Market	GWh	2,150	2,689	2,969	3,017
Market Share EDP - Liberalised Market	%	4	12	7	6
Brazil	GWh	7,536	13,711	9,890	11,733
Last Resort	GWh GWh	3,549	3,477	7,018	7,648
Liberalized Market Social Tariff	GWh	3,987 203	10,235 159	2,872 146	4,086 168
Portugal	GWh	45	46	52	59
Spain	GWh	0	28	25	32
Brazil	GWh	158	85	68	77
Green Tariff	GWh	703	1,495	5,546	5,553
Portugal	GWh	n.a.	174	10	9
Spain	GWh	130	1,321	5,536	5,544
Brazil	GWh	n.a.	n.a.	n.a.	n.a.
GAS CUSTOMERS	'000	688	1,601	1,596	1,583
Portugal	'000	683	695	698	699
Last Resort	'000	34	36	40	43
Liberalised Market	'000	650	658	659	656
Spain	'000	5	906	897	883
Last Resort	'000	0	53	52	51
Liberalised Market	'000	5	853	846	832
GAS SUPPLIED	GWh GWh	4,486	5,210	5,467	5,839
Portugal	GWh	1,354 74	1,144 65	1,210 77	1,255 93
Last Resort Liberalised Market	GWh	1,279	1,079	1,133	1,162
Market Share EDP - Liberalised Market	%	n.a.	11	12	11
Spain	GWh	3,133	4,066	4,257	4,584
Last Resort	GWh	0	98	110	111
Liberalised Market	GWh	3,133	3,969	4,147	4,474
Market Share EDP - Liberalised Market	%	8	13	4	4

GENERATION	U N	1Q21	1Q20	1Q19	1Q18
HYDRO INSTALLED CAPACITY	M W	7,127	8,785	8,785	9,019
Portugal	M W	5,076	6,759	6,759	6,847
Spain	M W	451	426	426	426
Brazil	M W	1,599	1,599	1,599	1,746
EQUITY HYDRO INSTALLED CAPACITY 1
Installed Capacity	M W	551	551	539	481
Brazil	M W	551	551	539	481
Capacity under Construction	M W	78	78	78	-
Brazil	M W	-	-	-	-
Peru	M W	78	78	78	-
HYDRO NET ELECTRICITY GENERATION	GWh	6,004	6,734	4,053	6,154
Portugal	GWh	3,924	4,697	2,396	3,790
Spain	GWh	358	230	274	408
Brazil	GWh	1,723	1,806	1,384	1,956
HYDRO TECHNICAL AVAILABILITY
Portugal	%	95	95	94	99
Spain	%	100	100	100	100
Brazil	%	99	97	100	95

Share of the M W installed in plants owned by companies equity consolidated

GENERATION	U N	1Q21	1Q20	1Q19	1Q18
THERMAL INSTALLED CAPACITY
Installed Capacity	M W	5,054	7,084	7,058	7,058
Portugal	M W	2,049	3,236	3,236	3,236
CCGT	M W	2,031	2,031	2,031	2,031
Coal	M W	0	1,180	1,180	1,180
Cogeneration	M W	17	24	24	24
Spain	M W	2,285	3,128	3,102	3,102
CCGT	M W	854	1,698	1,698	1,698
Coal	M W	1,250	1,250	1,224	1,224
Nuclear	M W	156	156	156	156
Cogeneration and Waste	M W	25	25	25	25
Brazil	M W	720	720	720	720
Coal	M W	720	720	720	720
Equity Installed Capacity 1	M W	10	10	10	41
Portugal	M W	0	0	0	32
Spain	M W	10	10	10	10
THERMAL NET ELECTRICITY GENERATION	GWh	2,489	3,793	5,505	5,681
Portugal	GWh	550	1,402	2,751	2,692
CCGT	GWh	512	1,330	768	907
Coal	GWh	0	38	1,934	1,734
Cogeneration	GWh	38	34	49	51
Spain	GWh	1,284	1,915	1,948	1,803
CCGT	GWh	286	924	547	395
Coal	GWh	688	645	1,036	1,045
Nuclear	GWh	287	331	332	331
Cogeneration and Waste	GWh	23	15	32	32
Brazil	GWh	656	476	805	1,186
Coal	GWh	656	476	805	1,186
THERMAL TECHNICAL AVAILABILITY
Portugal	%	97	97	95	83
CCGT	%	97	98	96	82
Coal	%	0	94	95	86
Cogeneration	%	100	91	100	100
Espanha	%	87	100	98	92
CCGT	%	98	100	100	100
Coal	%	80	100	94	80
Nuclear	%	88	100	100	100
Cogeneration	%	98	100	88	94
Waste	%	89	83	90	93
Brazil	%	93	77	96	98
Coal	%	93	77	96	98

Share of the M W installed in plants owned by companies equity consolidated

NETWORKS	U N	1Q21	1Q20	1Q19	1Q18
DISTRIBUTION
Electricity distributed	GWh	21,780	20,132	20,479	20,679
Portugal	GWh	11,631	11,775	11,729	12,052
Spain	GWh	3,545	2,031	2,227	2,410
Brazil	GWh	6,605	6,326	6,523	6,217
Electricity supply points	'000	11,298	10,480	10,352	10,249
Portugal	'000	6,310	6,285	6,232	6,194
Spain	'000	1,371	669	667	664
Brazil	'000	3,616	3,526	3,454	3,391
Grid extension	Km	375,978	342,228	339,976	338,235
Portugal	Km	229,222	228,110	226,589	226,124
Overhead lines	Km	179,898	179,031	177,686	177,380
Underground lines	Km	49,324	49,078	48,903	48,744
Spain	Km	52,450	20,781	20,724	20,630
Overhead lines	Km	39,605	15,738	15,734	15,703
Underground lines	Km	12,845	5,043	4,990	4,927
Brazil	Km	94,306	93,337	92,663	91,481
Overhead lines	Km	94,037	93,077	92,408	91,236
Underground lines	Km	269	260	254	246
GRID LOSSES
Portugal	%	11	11	11	12
Spain	%	6	4	4	4
Brazil	%	12	10	10	10
SERVICE QUALITY
Portugal
Installed Capacity Equivalent Interruption Time 1	Min	12	10	10	9
Spain
Installed Capacity Equivalent Interruption Time 1	Min	8	2	5	39
Brazil
Average Interruption Duration per Consumer
EDP São Paulo	Hours	7	7	8	8
EDP Espírito Santo	Hours	7	8	9	8
Frequency of Interruptions per Consumer
EDP São Paulo	#	5	4	5	5
EDP Espírito Santo	#	4	4	5	5
TRANSMISSION
Grid extension	Km	1,441	1,441	1,299	1,299
Grid extension in Operation	Km	316	187	113	-
Grid extension Under Construction	Km	1,125	1,254	1,186	1,299

ICEIT in M V grid, excluding extraordinary events

Sustainability Indicators

ENVIROMENTAL INDICATORS	U N	1Q21	1Q20	1Q19	1Q18
ENVIRONMENTAL CERTIFICATION (ISO 14001)
ISO 14001 Certification1	%	93	96	96	89
PRIMARY ENERGY CONSUMPTION	TJ	21,921	29,043	49,136	50,273
Coal	T J	12,858	10,589	35,680	37,960
Fuel oil	T J	9	19	100	69
Natural gas	T J	6,327	15,834	9,713	9,611
Residual gases	T J	2,641	2,510	3,531	2,544
Diesel oil	T J	34	31	51	31
Fuel for fleet	T J	50	60	60	58
ENERGY INTENSITY2	MJ/EUR	8.1	8.3	13.1	12.5
ELECTRICITY CONSUMPTION
Generation self-consumption	MWh	814,948	901,662	856,403	1,110,703
Administrative service	MWh	8,057	8,873	8,140	9,140
Grid losses	%	9.3	12.1	10.3	10.4
GHG EMISSION
Direct emissions (scope 1)	ktCO2eq	1,686	1,999	4,079	4,394
Stationary combustion3	ktCO2eq	1,681	1,993	4,074	4,389
SF6 Emissions	ktCO2eq	1.77	1.33	1.33	1.25
Company fleet	ktCO2eq	3	4	4	4
Natural gas consumption	ktCO2eq	0.15	0.02	0.02	0.05
Indirect emissions (scope 2)4	ktCO2eq	169	240	214	193
Electricity consumption in office buildings	ktCO2eq	0.0	0.3	0.3	0.7
Distribution electricity losses	ktCO2eq	168	235	208	187
Renewable plants self-consumption	ktCO2eq	1.5	5.4	5.9	5.4
GHG EMISSIONS INTENSITY5	kgCO2 /EUR	0.6	0.6	1.1	1.1
CO2 AVOIDED EMISSIONS6	ktCO2	7,318	8,371	7,644	9,953
SPECIFIC OVERALL EMISSIONS
3 7 CO2	g/kWh	101	110	228	214
NOx	g/kWh	0.1	0.0	0.2	0.2
S O2	g/kWh	0.1	0.1	0.3	0.3
Particulate matter	g/kWh	0.02	0.01	0.02	0.02
WATER COLLECTED	103 x m3	87,254.6	70,021.2	369,078.7	345,099.5
Salt and estuary	103 x m3	80,732.7	67,021.2	364,948.4	339,753.5
Fresh	103 x m3	6,521.96	2,999.96	4,130.27	5,345.99
WASTE MATERIALS	t	60,918	48,436	202,298	171,618
Waste	t	50,823	40,925	66,696	68,297
Hazard waste	%	2.7	2.2	1.8	2.1
Non-hazard waste	%	79.4	81.9	86.1	66.4
By-products	t	10,095	7,511	135,601	103,321
Gypsum	t	6,807	6,014	45,789	32,556
Fly ash	t	3,017	1,497	70,874	63,389
Slag	t	271	0	18,938	7,376
SUSTAINABLE MOBILITY
Light-duty fleet electrification	%	12	9	n/a	n/a
Electric charging points	#	2,396.0	936.0	n/a	n/a
Customers with electric mobility solutions	#	30.7	13.5	n/a	n/a

Note: n.a. - not applicable; n/a - not available

Aggregated certifiction indicator due to assets with potential environmental impacts.

²Primary energy consumption by turnover.

3 The stationary emissions do not include those produced by the burning of ArcelorM ittal steel gases in EDP's power plants in Spain.

⁴Calculation according with GHG Protocol based location methodology.

⁵Scope 1 and Scope 2 emissions by turnover.

CO2 emissions that would have occurred if the electricity generated by renewable energy sources were produced by thermal power plants. For each country, it is obtained by multiplying the net renewable energy production by the emission factor of the thermoelectric mix of that country.

⁷Includes only stationary combustion emissions.

SOCIAL INDICATORS	U N	1Q21	1Q20	1Q19	1Q18
EMPLOYMENT
Employees1	#	12,063	11,563	11,613	11,514
Executive Board of Directors	#	5	9	9	8
Senior Management	#	886	845	814	788
Supervisors	#	768	800	764	738
Specialists	#	4,847	4,522	4,329	4,131
Technicians	#	5,091	5,387	5,697	5,850
Male employees	%	74	74	75	76
Female employees	%	26	26	25	24
Employees by types of contract	#	12,063	11,563	11,613	11,514
Executive bodies	#	57	61	59	53
Male	#	45	54	55	50
Female	#	12	7	4	3
Permanent workforce	#	11,950	11,462	11,502	11,395
Male	#	8,890	8,522	8,656	8,642
Female	#	3,060	2,940	2,846	2,753
Fixed-term contracts	#	56	40	52	66
Male	#	38	27	27	35
Female	#	18	13	25	31
Employees by occupational contract	#	12,063	11,563	11,613	11,514
Full-Time	#	12,015	11,517	11,569	11,473
Male	#	8,969	8,596	8,732	8,722
Female	#	3,046	2,921	2,837	2,751
Part-time	#	48	46	44	41
Male	#	4	7	6	5
Female	#	44	39	38	36
New employees	#	367	408	378	299
Male	#	237	262	293	223
Female	#	130	146	85	76
F/M new admissions rate	x	0.5	0.6	0.3	0.3
Employees leaving	#	483	505	396	442
Male	#	370	391	316	353
Female	#	113	114	80	89
Turnover	%	4.00	4.37	3.41	3.17
Average age of workforce	years	42	42	43	44
Absenteeism rate2	%	2.78	2.94	2.85	2.97
Pay ratio by gender (F/M)	x	0.96	1.05	1.05	1.03
TRAINNING
Total hours of training	hours	67,064	52,094	79,990	75,624
Average training per employee (h/p)	h/p	6	5	7	7
Employees with training	%	77	58	45	60

SOCIAL INDICATORS	U N	1Q21	1Q20	1Q19	1Q18
HEALTH AND SAFETY (H&S)
Employees
Accidents with lost workdays3	#	3	5	6	6
Fatal work-related injuries	#	0	0	0	0
Total lost days due to accidents4	#	361	249	564	501
Frequency rate5	T f	0.55	0.92	1.09	1.11
Severity rate6	T g	66	46	102	93
Overall severity rate7	Tgt	72	1,115	125	104
Contractors
Accidents with lost workdays3	#	26	19	16	17
Fatal work-related injuries	#	2	0	0	2
Hours worked	#	17,528,586	12,610,773	10,390,988	10,640,540
Frequency rate5	T f	1.60	1.58	1.60	1.91
Severity rate6	T g	101	104	97	64
Overall severity rate7	Tgt	787	96	95	1,202
Employees and contractors
Frequency rate5	T f	1.35	1.38	1.42	1.63
Severity rate6	T g	93	86	99	74
Overall severity rate7	Tgt	618	410	105	830
Near accidents	#	135	85	103	96
People outside the activity
Fatal electrical accidents envolving third parties 8 VOLUNTEER INVESTMENT IN THE COMMUNITY (LBG METHODOLOGY)	#	2	7	3	4
Volunteer investment/EBITDA9	%	0.21	0.15	0.27	0.30

¹Includes 466 employees of Viesgo's companies wich internal segmentation is under analysis.

Excludes data from employees of Viesgo's companies.

Accidents occurred at the place and working time or on a journey, with 1 or more days of absence and fatal accidents.

⁴Sum of the number of absence calendar days resulting of work accidents occurred in the reference period, plus the number of days lost by accidents in the previous period, which lasted until the reference period without interruption. The lost time is measured from the day following the accident to the day right before the return to work.

Number of accidents at work with absence/fatalities, per million hours worked.

6 Number of calendar days lost due to work accident per million hours worked, in the reference period.

Number of calendar days lost due to work accidents per million hours worke, in the reference period, including days for permanent disability and a portion of 6,000 days for each fatal accident.

Accidents involving persons outside EDP's activity.

⁹The 1Q20 figure does not yet include all EDP's contributions to the response to the COVID-19 pandemic crisis.

ECONOMIC INDICATORS	U N	1Q21	1Q20	1Q19	1Q18
ECONOMIC VALUE GENERATED	000€	3,295,972	3,721,999	3,929,875	4,247,458
Economic value distributed	000€	2,532,414	3,159,088	3,129,827	3,551,015
Economic value accumulated	000€	763,558	562,911	800,048	696,443
ENERGY EFFICIENCY AND SUPLEMENTARY ENERGY SERVICES REVENUES1	000€	249,325	271,745	270,528	263,960
Energy efficiency services revenues	000€	73,955	54,032	41,471	37,485
Suplementary energy services revenues2	000€	175,370	217,714	229,057	226,475
FINES AND PENALTIES	000€	1,965	1,613	4,416	1,995
ENVIRONMENTAL MATTERS	000€	50,105	57,278	82,109	44,870
Investments	000€	13,564	7,698	9,638	6,092
Expenses	000€	36,541	49,580	72,471	38,778
SOCIAL MATTERS
Personnal costs	000€	142,361	147,268	144,203	147,602
Employee benefits	000€	19,450	17,763	15,084	15,029
Direct training investment	000€	469	390	704	931
Direct training investment per employee	€/p	39	34	61	81
HC ROI per employee	€/p	6.88	7.72	7.29	7.28

1 Energy Efficiency and Suplementary Energy Services: services provided under energy supply, installation of more efficient and/or building retrofit, and sustainable mobility, which generate revenues for the company.

2 Suplementary Energy Services Revenues include the following categories: Energy M anagement, M aintenance and Operation, Property/Facility M anagement, Energy and/or Equipment Supply, Provision of Service (example: steam) and other.

Changing tomorrow now.

Condensed Financial Statements 31 March 2021

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Condensed Consolidated Income Statements for the three-month periods ended at 31 March 2021 and 2020

Thousand Euros	Notes	2021	2020
Revenues from energy sales and services and other	7	3,088,043	3,501,962
Cost of energy sales and other	7	-1,780,082	-2,027,137
		1,307,961	1,474,825

Other income	8	93,390	95,938
Supplies and services	9	-194,829	-201,011
Personnel costs and employee benefits	10	-161,811	-165,031
Other expenses	11	-192,217	-209,625
Impairment losses on trade receivables and debtors		-1,585	-14,224
		-457,052	-493,953
Joint ventures and associates	18	13,419	-1,297
		864,328	979,575

Provisions	29	-12,407	-15,929
Amortisation and impairment		-356,127	-366,657
		495,794	596,989
Financial income	12	101,120	125,397
Financial expenses	12	-224,226	-331,214
Profit before income tax and CESE		372,688	391,172

Income tax expense	13	-62,790	-92,426
Extraordinary contribution to the energy sector (CESE)	33	-51,286	-62,759
		-114,076	-155,185
Net profit for the period		258,612	235,987
Attributable to:
Equity holders of EDP		179,544	145,851
Non-controlling Interests	26	79,068	90,136

Net profit for the period		258,612	235,987
Earnings per share (Basic and Diluted) - Euros		0.05	0.04

LISBON, 13 MAY 2021

N.º 17,713

Condensed Consolidated Statements of Comprehensive Income for the three-month periods ended at 31 March 2021 and 2020

	2021		2020
Thousand Euros	Equity holders of EDP	Non-controlling Interests	Equity holders of EDP	Non-controlling Interests
Net profit for the period	179,544	79,068	145,851	90,136
Items that will never be reclassified to profit or loss (i)
Actuarial gains/(losses) (iii)	46,907	724	-89,329	-
Tax effect from the actuarial gains/(losses)	-14,596	-186	28,139	-
Fair value reserve with no recycling (financial assets) (ii)	418	-	-7,111	-
Tax effect from the fair value reserve with no recycling (financial assets) (ii)	-116	-	1,749	-
	32,613	538	-66,552	-
Items that may be reclassified to profit or loss (i)
Currency translation reserve	-47,067	-13,729	-336,105	-268,982
Fair value reserve (cash flow hedge) (ii)	14,946	-861	87,855	2,041
Tax effect from the fair value reserve (cash flow hedge) (ii)	-2,474	-97	-23,827	-2,065
Fair value reserve of assets measured at fair value throught other comprehensive income with recycling (ii)	-243	-	-	-
Tax effect of Fair value reserve of assets measured at fair
value throught other comprehensive income with recycling (ii) Share of other comprehensive income of	77	-	-	-
joint ventures and associates, net of taxes	11,600	5,172	-10,039	-10,557
	-23,161	-9,515	-282,116	-279,563
Other comprehensive income for the period (net of income tax)	9,452	-8,977	-348,668	-279,563
Total comprehensive income for the period	188,996	70,091	-202,817	-189,427

(i) See Consolidated Statement of Changes in Equity

(ii) See Note 25

(iii) See Note 28

LISBON, 13 MAY 2021

N.º 17,713

Condensed Consolidated Statements of Financial Position as at 31 March 2021 and 31 December 2020

Thousand Euros	Notes	2021	2020
Assets
Property, plant and equipment	14	20,260,370	20,163,221
Right-of-use assets	15	988,769	1,030,193
Intangible assets	16	4,968,757	4,998,235
Goodwill	17	2,340,996	2,306,303
Investments in joint ventures and associates	18	1,250,339	940,362
Equity instruments at fair value	19	186,133	184,748
Investment property		21,209	21,378
Deferred tax assets	20	982,179	1,139,543
Debtors and other assets from commercial activities	21	2,929,253	2,747,012
Other debtors and other assets	22	1,188,184	1,020,788
Non-Current tax assets	23	221,036	251,770
Collateral deposits associated to financial debt	27	23,680	22,848
Total Non-Current Assets		35,360,905	34,826,401

Inventories		325,914	323,945
Debtors and other assets from commercial activities	21	3,618,792	3,545,611
Other debtors and other assets	22	619,386	850,753
Current tax assets	23	514,788	414,302
Collateral deposits associated to financial debt	27	9,342	9,221
Cash and cash equivalents	24	1,379,467	2,954,302
Non-Current Assets held for sale	34	631,439	22,248
Total Current Assets		7,099,128	8,120,382
Total Assets		42,460,033	42,946,783

Equity
Share capital		3,965,681	3,965,681
Treasury stock		-54,025	-54,025
Share premium		1,196,522	1,196,522
Reserves and retained earnings	25	4,495,671	3,673,785
Consolidated net profit attributable to equity holders of EDP		179,544	800,692
Total Equity attributable to equity holders of EDP
		9,783,393	9,582,655
Non-controlling Interests	26	3,506,264	3,495,754
Total Equity		13,289,657	13,078,409

Liabilities
Financial debt	27	14,226,246	14,023,940
Employee benefits	28	1,076,278	1,138,237
Provisions	29	988,200	992,865
Deferred tax liabilities	20	808,772	814,474
Institutional partnerships in North America	30	1,656,682	1,933,542
Trade payables and other liabilities from commercial activities	31	1,478,645	1,435,006
Other liabilities and other payables	32	1,751,766	1,739,448
Non-current tax liabilities	33	111,606	122,743
Total Non-Current Liabilities		22,098,195	22,200,255

Financial debt	27	1,738,061	2,262,823
Employee benefits	28	186,642	204,067
Provisions	29	240,130	260,154
Trade payables and other liabilities from commercial activities	31	3,292,805	3,952,213
Other liabilities and other payables	32	723,278	590,117
Current tax liabilities	33	476,474	398,634
Non-Current Liabilities held for sale	34	414,791	111
Total Current Liabilities		7,072,181	7,668,119
Total Liabilities		29,170,376	29,868,374
Total Equity and Liabilities		42,460,033	42,946,783

LISBON, 13 MAY 2021

N.º 17,713

EDP - Energias de Portugal Condensed Consolidated Statements of Changes in Equity for the three-month periods ended at 31 March 2021 and 2020

Thousand Euros	Total Equity	Share capital	Share premium	Legal reserve (i)	Reserves and retained earnings (i)	Fair value reserve (cash flow hedge) (i)	Fair value reserve (financial assets) (i)	Currency translation reserve (i)	Treasury stock	Equity attributable to equity holders of EDP	Non controlling Interests (ii)
Balance as at 31 December 2019	12,632,013	3,656,538	503,923	739,024	4,518,226	40,541	15,202	-554,047	-61,220	8,858,187	3,773,826
Comprehensive income: Net profit for the period Changes in the fair value reserve (cash flow hedge) net of taxes	235,987 64,004	- -	- -	- -	145,851 -	- 64,028	- -	- -	- -	145,851 64,028	90,136 -24
Changes in the fair value reserve of assets measured at fair value through other comprehensive income, net of taxes	-5,362	-	-	-	-	-	-5,362	-	-	-5,362	-
Share of other comprehensive income of joint ventures and associates net of taxes	-20,596	-	-	-	-13,546	-1,421	-	4,928	-	-10,039	-10,557
Actuarial gains/(losses) net of taxes Exchange differences arising on	-61,190	-	-	-	-61,190	-	-	-	-	-61,190	-
consolidation	-605,087	-	-	-	-	-	-	-336,105	-	-336,105	-268,982
Total comprehensive income for the period Dividends attributable to non-controlling	-392,244	-	-	-	71,115	62,607	-5,362	-331,177	-	-202,817	-189,427
interests Changes resulting from acquisitions/sales, equity increases/decreases and other	-814 -17,367	- -	- -	- -	- 2,524	- -	- -	- -	- -	- 2,524	-814 -19,891
Balance as at 31 March 2020	12,221,588	3,656,538	503,923	739,024	4,591,865	103,148	9,840	-885,224	-61,220	8,657,894	3,563,694

Balance as at 31 December 2020	13,078,409	3,965,681	1,196,522	739,024	4,781,428	-4,368	11,888	-1,053,495	-54,025	9,582,655	3,495,754
Comprehensive income: Net profit for the period	258,612	-	-	-	179,544	-	-	-	-	179,544	79,068
Changes in the fair value reserve (cash flow hedge) net of taxes Changes in the fair value reserve of	11,514	-	-	-	-	12,472	-	-	-	12,472	-958
assets measured at fair value through other comprehensive income, net of taxes	136	-	-	-	-	-	136	-	-	136	-
Share of other comprehensive income of joint ventures and associates net of taxes	16,772	-	-	-	4,685	8,498	-	-1,583	-	11,600	5,172
Actuarial gains/(losses) net of taxes	32,849	-	-	-	32,311	-	-	-	-	32,311	538
Exchange differences arising on consolidation	-60,796	-	-	-	-	-	-	-47,067	-	-47,067	-13,729
Total comprehensive income for the period	259,087	-	-	-	216,540	20,970	136	-48,650	-	188,996	70,091
Dividends attributable to non-controlling interests	-3,678	-	-	-	-	-	-	-	-	-	-3,678
Changes resulting from acquisitions/sales, equity increases/decreases and other	-44,161	-	-	-	11,742	-	-	-	-	11,742	-55,903
Balance as at 31 March 2021	13,289,657	3,965,681	1,196,522	739,024	5,009,710	16,602	12,024	-1,102,145	-54,025	9,783,393	3,506,264

(i) See note 25 (ii) See note 26

LISBON, 13 MAY 2021

N.º 17,713

Condensed Consolidated and Company Statements of Cash Flows for the three-month periods ended at 31 March 2021 and 2020

		Group		Company
Thousand Euros	Notes	2021	2020	2021	2019
Operating activities
Profit before income tax and CESE		372,688	391,172	-42,593	-96,059
Adjustments for:
Amortisation and impairment		356,127	366,657	7,508	6,706
Provisions	29	12,407	15,929	-	-
Joint ventures and associates	18	-13,419	1,297	-	-
Financial (income)/expenses	12	123,106	205,817	-17,914	163,188
Changes in working capital:
Trade and other receivables		10,847	183,796	280,464	202,061
Trade and other payables		-247,457	-130,983	6,939	-146,635
Personnel		-55,075	-27,216	2,700	2,338
Regulatory assets		-162,375	514,909	-	-
Other changes in assets/liabilities related with operating activities		-155,857	-126,888	51,286	-62,959
Income tax and CESE		10,171	-15,925	-794	11,999
Net cash flows from operations		251,163	1,378,565	287,596	80,639
Net (gains) / losses with Asset Rotations		-	-	-	-
Net cash flows from operating activities		251,163	1,378,565	287,596	80,639
Investing activities
Cash receipts relating to:
Sale of assets/subsidiaries with loss of control		-	131,253	-	-
Other financial assets and investments i)		47,232	35,628	-	45
Other financial assets at amortised cost		-	-	48,713	154,679
Changes in cash resulting from consolidation perimeter variations		2,800	-	-	-
Property, plant and equipment and intangible assets		13,064	3,819	113	6,099
Other receipts relating to tangible fixed assets		3,412	757	-	-
Interest and similar income		4,476	9,209	3,955	6,253
Dividends		3,756	2,429	110,850	85,000
Loans to related parties		511,083	9,594	-	-
		585,823	192,689	163,631	252,076
Cash payments relating to:
Acquisition of assets/subsidiaries ii)		-47,665	-	-	-
Other financial assets and investments iii)		-356,922	-89,330	-2,206	-209
Property, plant and equipment and intangible assets		-1,115,593	-451,699	-10,982	-10,177
Loans to related parties		-281,367	-18,296	-2,033	-30,921
		-1,801,547	-559,325	-15,221	-41,307
Net cash flows from investing activities		-1,215,724	-366,636	148,410	210,769
Financing activities
Receipts relating to financial debt (include Collateral Deposits)		1,176,241	1,235,369	956,220	973,834
(Payments) relating to financial debt (include Collateral Deposits)		-1,574,980	-2,048,372	-1,712,220	-1,725,000
Interest and similar costs of financial debt including hedge derivatives		-139,107	-231,653	-15,144	-87,092
Receipts/(payments) relating to loans from non-controlling interests		477	1,542	-	-
Interest and similar costs relating to loans from non-controlling interests Receipts/(payments) relating to loans from related parties		-1,730 -	-536 -	- -374,701	- 671,147
Share capital increases/(decreases) (includes the subscribed by non-controlling interests)		-18,713	-20,729	-	-
Receipts/(payments) relating to derivative financial instruments		16,618	3,081	-	12,416
Dividends paid to non-controlling interests		-4,942	-8,792	-	-
Receipts/(payments) related with transactions with non-controlling interest without
change of control		-	1,267	-	-
Lease (payments) iv)		-24,260	-19,005	-3,144	-3,108
Receipts/(payments) from institutional partnerships in North America v)		-9,626	129,258	-	-
Net cash flows from financing activities		-580,022	-958,570	-1,148,989	-157,803

Changes in cash and cash equivalents		-1,544,583	53,359	-712,983	133,605
Effect of exchange rate fluctuations on cash held		-21,486	-136,816	1,716	369
Cash and cash equivalents reclassified as held for sale		-8,766	-14,640	-	-
Cash and cash equivalents at the beginning of the period		2,954,302	1,542,722	2,172,631	1,037,392
Cash and cash equivalents at the end of the period vi)		1,379,467	1,444,625	1,461,364	1,171,366

i) Relates essentially to the receivement of notes (see note 22) and the receivement related to the sale of CIDE HC Energia, S.A. (see note 6);

ii) Relates, essentially, to the impact with the acquisition Enertrel Group S.r.l., the companies Enercoplan and Sofrano as well a solar portfolio located in North America (see note 6);

iii) Relates essentially to payments made for the capital increases in companies located in OW Offshore S.L. (see note 18);

iv) Includes capital and interest;

v) On a consolidated basis, refers to the receipts and payments net of transaction costs (transactions included in note 30);

vi) See details of Cash and cash equivalents in note 24 and the Consolidated and Company Reconciliation of Changes in the responsibilities of Financing activities in note 42 of the Financial Statements.

LISBON, 13 MAY 2021

N.º 17,713

Condensed Company Income Statements for the three-month periods ended at 31 March 2021 and 2020

Thousand Euros	Notes	2021	2020

Revenues from energy sales and services and other	7	656,500	684,031
Cost of energy sales and other	7	-655,955	-558,437
		545	125,594

Other income		3,550	5,032
Supplies and services	9	-34,609	-33,485
Personnel costs and employee benefits	10	-21,346	-19,921
Other expenses		-1,139	-3,385
		-53,544	-51,759
		-52,999	73,835

Amortisation and impairment		-7,508	-6,706
		-60,507	67,129

Financial income	12	177,408	152,496
Financial expenses	12	-159,494	-315,684

Profit before income tax		-42,593	-96,059

Income tax expense	13	18,003	20,006

Net profit for the period		-24,590	-76,053

LISBON, 13 MAY 2021

N.º 17,713

Condensed Company Statements of Comprehensive Income for the three-month periods ended at 31 March 2021 and 2020

Thousand Euros	2021	2020
Net profit for the period	-24,590	-76,053
Items that may be reclassified to profit or loss (i)
Fair value reserve (cash flow hedge) (ii)	50,756	-63,333
Tax effect from the fair value reserve (cash flow hedge) (ii)	-11,420	14,250
	39,336	-49,083
Other comprehensive income for the period (net of income tax)	39,336	-49,083
Total comprehensive income for the period	14,746	-125,136

(i) See Company Statement of Changes in Equity (ii) See Note 25

LISBON, 13 MAY 2021

N.º 17,713

Condensed Company Statements of Financial Position as at 31 March 2021 and 31 December 2020

Thousand Euros	Notes	2021	2020
Assets
Property, plant and equipment		28,988	27,958
Right-of-use assets		105,714	106,911
Intangible assets		118,554	115,223
Investments in subsidiaries		14,403,765	14,396,105
Investments in joint ventures and associates		2	2
Equity instruments at fair value		1,252	1,252
Investment property		88,545	87,289
Deferred tax assets	20	119,733	123,626
Debtors and other assets from commercial activities		736	730
Other debtors and other assets	22	3,212,547	3,203,422
Total Non-Current Assets		18,079,836	18,062,518

Debtors and other assets from commercial activities	21	455,222	733,926
Other debtors and other assets	22	908,211	853,407
Current tax assets	23	138,241	51,314
Cash and cash equivalents	24	1,461,364	2,172,631
Total Current Assets		2,963,038	3,811,278
Total Assets		21,042,874	21,873,796

Equity
Share capital		3,965,681	3,965,681
Treasury stock		-54,025	-54,025
Share premium		1,196,522	1,196,522
Reserves and retained earnings	25	3,704,271	2,786,784
Net profit for the period		-24,590	878,151
Total Equity		8,787,859	8,773,113

Liabilities
Financial debt	27	8,886,853	8,134,429
Employee benefits		8,391	8,366
Provisions		2,051	2,051
Trade payables and other liabilities from commercial activities		205	363
Other liabilities and other payables	32	583,269	497,290

Total Non-Current Liabilities		9,480,769	8,642,499
Financial debt	27	1,508,760	3,349,143
Employee benefits		1,075	1,075
Provisions		848	848
Trade payables and other liabilities from commercial activities	31	688,897	662,559

Other liabilities and other payables	32	555,768	423,337
Current tax liabilities	33	18,898	21,222
Total Current Liabilities		2,774,246	4,458,184
Total Liabilities		12,255,015	13,100,683
Total Equity and Liabilities		21,042,874	21,873,796

LISBON, 13 MAY 2021

N.º 17,713

Condensed Company Statements of Changes in Equity

for the three-month periods ended at 31 March 2021 and 2020

Thousand Euros	Total Equity	Share capital	Share premium	Legal reserve (i)	Reserves and retained earnings (i)	Fair value reserve (cash flow hedge) (i)	Treasury stock
Balance as at 31 December 2019	7,445,497	3,656,538	503,923	739,024	2,672,405	-71,269	-55,124

Comprehensive income:
Net profit for the period	-76,053	-	-	-	-76,053	-	-
Changes in the fair value reserve (cash flow hedge) net of taxes	-49,083	-	-	-	-	-49,083	-
Total comprehensive income for the period	-125,136	-	-	-	-76,053	-49,083	-
Balance as at 31 March 2020	7,320,361	3,656,538	503,923	739,024	2,596,352	-120,352	-55,124
Balance as at 31 December 2020	8,773,113	3,965,681	1,196,522	739,024	2,860,158	65,753	-54,025
Comprehensive income:
Net profit for the period	-24,590	-	-	-	-24,590	-	-
Changes in the fair value reserve (cash flow hedge) net of taxes	39,336	-	-	-	-	39,336	-
Total comprehensive income for the period	14,746	-	-	-	-24,590	39,336	-
Balance as at 31 March 2021	8,787,859	3,965,681	1,196,522	739,024	2,835,568	105,089	-54,025

(i) See note 25

LISBON, 13 MAY 2021

N.º 17,713

Notes to the Consolidated and Company Financial Statements

COVID 19 - Macroeconomic, Operational and Accounting Impact	23
1. Economic activity of EDP Group	24
2. Accounting policies	24
3. Recent accounting standards and interpretations issued	24
4. Critical accounting estimates and judgements in preparing the financial statements	25
5. Financial risk management policies	27
6. Consolidation perimeter	29
7. Revenues and cost of Energy Sales and Services and Other	30
8. Other income	31
9. Supplies and services	32
10. Personnel costs and employee benefits	32
11. Other expenses	32
12. Financial income and expenses	33
13. Income tax	34
14. Property, plant and equipment	35
15. Right-of-use assets	36
16. Intangible assets	37
17. Goodwill	37
18. Investments in joint ventures and associates	37
19. Equity instruments at fair value	38
20. Deferred tax assets and liabilities	39
21. Debtors and other assets from commercial activities	40
22. Other debtors and other assets	42
23. Tax assets	43
24. Cash and cash equivalents	44
25. Reserves and retained earnings	44
26. Non-controlling interests	46
27. Financial debt	46
28. Employee benefits	48
29. Provisions	49
30. Institutional partnerships in North America	52
31. Trade payables and other liabilities from commercial activities	52
32. Other liabilities and other payables	54
33. Tax liabilities	55
34. Non-Current assets and liabilities held for sale	55
35. Derivative financial instruments	56
36. Commitments	58
37. Related parties	58
38. Fair value of financial assets and liabilities	61
39. Relevant or subsequent events	61
40. EDP Branch in Spain	62
41. Operating segments	63
42. Consolidated and Company Reconciliation of Changes in the responsibilities of Financing activities	69
43. Explanation added for translation	70

COVID 19 - Macroeconomic, Operational and Accounting Impact

In late 2019, in the Chinese city of Wuhan, a virus, SARS-COV-2, that can cause a serious respiratory infection like pneumonia was first identified in humans. During the year 2020, the disease caused by the virus, the COVID-19, was classified by the World Health Organization (WHO) as a pandemic. COVID-19 has forced the world to change its habits and is having several social, economic, regulatory, operational, accounting and public health impacts.

Macroeconomic Impact

The current global crisis with the COVID-19 pandemic incorporates significant risks to the economy and society, remaining an uncertainty regarding the duration of the epidemic crisis and its long term economic impacts.

In global macroeconomic terms, COVID-19 has impacted the EDP Group's activity in its various geographies and across the value chain. However, a prudent strategy to hedge energy and financial market risks, the maintenance of robust liquidity levels as well as an active management of suppliers and critical supplies, have allowed to significantly mitigate the impacts of this crisis.

Operational Impact

The rapid and effective implementation of EDP's business continuity plans in its various Business Units allowed the continuity of operations during the period of confinement, without significant interruptions in the supply of energy or services to customers.

EDP's operational and investment activities are dependent on local and global supply chains, with active management of critical supplies being carried out to minimize potential impacts of breakages in these chains.

Accounting Impact

EDP Group has not applied any different classifications from those normally used in its condensed income statement, as a result of COVID-19. To assess possible accounting impacts arising from COVID-19, the Group reassessed the estimates it considers relevant and which may have been impacted by this fact. Thus, on 31 March 2021, the Group carried out a series of analyses of the relevant estimates and has not determined any materially relevant impacts compared to 31 December 2020.

The condensed consolidated and company financial statements of EDP SA, for the period ended 31 March 2021, were prepared in accordance with IFRS as adopted by the EU up to 1 January 2021 and considering the International Financial Reporting Standard IAS 34 - "Interim Financial Report", so they do not include all the information required for the annual financial statements and should be read in conjunction with the Group's consolidated financial statements for the period ended on 31 December 2020.

1. Economic Activity of EDP Group

EDP - Energias de Portugal, S.A. (hereinafter referred to as EDP), currently with head office in Lisbon, Avenida 24 de Julho 12 and with its shares listed on the Euronext Lisbon stock exchange, results from the transformation of Electricidade de Portugal, E.P., incorporated in 1976 following the nationalization and consequent merger of the main companies in the electricity sector in Portugal. During 1994, as established by Decreelaws 7/91 and 131/94, the EDP Group (EDP Group or Group) was set up following the split of EDP, which led to a number of directly or indirectly wholly owned subsidiaries of EDP.

The Group's businesses are currently focused on the generation, transmission, distribution and supply of electricity and supply of gas. Additionally, the Group also operates in related areas such as engineering, laboratory tests, professional training, energy services and property management.

EDP Group operates essentially in the European (Portugal, Spain, France, Poland and Romania) and American (Brazil and North America) energy sectors.

2. Accounting Policies

a) Basis of presentation

The accompanying consolidated and company financial statements of EDP - Energias de Portugal, S.A. reflect the results of the company's operations and its subsidiaries (EDP Group or Group) and the Group's interest in its joint ventures and associated companies, for the periods ended on 31 March 2021 and 2020 and EDP S.A.'s Executive Board of Directors approved them on 13 May 2021, after that they are subject to General Meeting approval. The financial statements are presented in thousand Euros, rounded to the nearest thousand.

In accordance with Regulation (EC) 1606/2002 of the European Council and Parliament, of 19 July 2002, as transposed into Portuguese legislation through Decree-law 158/2009 of 13 July and the changes introduced through Decree-law 98/2015 of 2 June, the condensed company's financial statements and the condensed Group's consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), as endorsed by the European Union (E.U). IFRS comprise accounting standards issued by the International Accounting Standards Board (IASB) as well as interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) and their predecessor bodies. The EDP Group's condensed consolidated and company financial statements for the period ended at 31 March 2021 were prepared in accordance with IFRS as adopted by the E.U. until 1 January 2021 and considering the International Financial Reporting Standard IAS 34 - Interim Financial Reporting. These financial statements do not include all the information required to be published on the annual financial statements, and should, therefore, be read together with the consolidated financial statements of the Group for the year ended 31 December 2020.

EDP Group's activity does not have, at a quarterly basis, any significant seasonality.

Selected explanatory notes are included to explain events and transactions that are significant to understand the changes in the EDP Group's financial position and performance since the last annual financial statements.

3. Recent Accounting Standards and Interpretations Issued

Standards, amendments and interpretations issued effective for the Group

The amendments that have been issued and that are already effective and that the Group has applied on its financial statements, with no significant impacts, are the following:

IFRS 4 (Amended) - Deferral of effective dates to apply two optional solutions (temporary exemption from IFRS 9 and overlay approach); and
Amendments to IFRS 9, IFRS 7, IFRS 4 and IFRS 16 - Interest Rate Benchmark Reform (Phase 2).

Standards, amendments and interpretations issued but not yet effective for the Group

The standards, amendments and interpretations issued but not yet effective for the Group (whose effective application date has not yet occurred or, despite their effective dates of application, they have not yet been endorsed by the EU) for which no signifcant impact is expected, are the following:

IFRS 17 - Insurance Contracts;
IAS 1 (Amended) - Classification of Liabilities as Current or Non-current;
IFRS 3 (Amended) - Reference to the Conceptual Framework;
IAS 16 (Amended) - Proceeds before Intended Use;
IAS 37 (Amended) - Onerous Contracts – Cost of Fulfilling a Contract;
Annual Improvement Project (2018-2020);
IA1 (Amended) - Disclosure of Accounting Policies;
IAS 8 (Amended) - Disclosure of Accounting Estimates; and
IFRS 16 (Amended) - Covid-19 Related Rents Concessions beyond 30 June 2021.

4. Critical Accounting Estimates and Judgements in Preparing the Financial Statements

IFRS requires the use of judgement and the making of estimates in the decision process regarding certain accounting treatments, with impact in total assets, liabilities, equity, costs and income. The actual effects may differ from these estimates and judgements, namely in relation to the effect of actual costs and income.

The critical accounting estimates and judgements made by management in applying EDP Group's accounting policies were the same as those applied to the consolidated financial statements as at 31 December 2020, with a special note for the following items.

Considering that in many cases there are alternatives to the accounting treatment adopted by EDP Group, the reported results could differ if a different treatment was chosen. The Executive Board of Directors believes that the choices made are appropriate and that the financial statements present fairly the Group operations in all material respects.

Ancillary Services

On 3 September 2018 the Autoridade da Concorrência (AdC) adopted a Note of Illegality, under which it intended to attribute to EDP Produção a behavior of abuse of a dominant position in the secondary regulation band market. AdC claimed that EDP Produção restricted the offer of a segment of the Electricity System (the secondary regulation band or teleregulation service) between 2009 and the first quarter of 2014, limiting the capacity offer of its plants under CMEC regime to benefit market power plants, in order to benefit twice, to the detriment of consumers. The same authority stressed that the adoption of a Note of Illegality does not determine the final result of this investigation, which began in September 2016. On 28 November 2018, EDP Produção exercised its right to be heard and to defend itself in relation to the wrongful act was imputed and the sanctions it could incur, that is, it responded to the Note of Illegality.

On 18 September 2019, AdC informed EDP Produção of its decision to condemn, imposing a fine of 48 million Euros, for alleged abuse of dominant position in the secondary regulation band market in mainland Portugal between 2009 and the first quarter of 2014.

According to AdC, EDP Produção would have manipulated its offer of tele-regulation service or secondary regulation band, limiting the capacity offer of its CMEC power plants to offer it through its market power plants, benefiting in two ways:

Highest compensation paid to CMEC plants (annual revisability), as their lower participation in the provision of secondary regulation band service would be below what would be expected (according to competitive market criteria); and
The increase of the market price of the secondary bandwidth service, as a result of the limited supply by CMEC plants, favoring market-based power plants.

On 30 October 2019, EDP Produção filed an appeal against this decision before the Competition, Regulation and Supervision Court (TCRS), awaiting the AdC's counter-allegations. On 20 May 2020, EDP Produção was notified of an order from TCRS, which, among other things, admitted its Appeal of Judicial Contestation, establishing a purely return effect and determining the payment of the fine imposed within 20 days. In this context, EDP Produção submitted requests, invoking supervening facts to demonstrate the considerable damage associated with a putative payment of the fine, and arguing defects in the decision that determined the attribution of a merely devolutive effect to the Judicial Challenge Appeal, and is waiting for a court decision on whether the fine can be replaced by some form of collateral, until there is a decision of the Court. On 16 July 2020, EDP Produção was notified of the TCRS's order which, in particular, suspended the advance payment of the fine. On 18 November 2020, EDP Produção was notified of the judgment of the Lisbon Court of Appeal that upheld the appeal filed by the Public Prosecutor's Office and revoked the referred TCRS order. EDP Produção appealed to the Constitutional Court on 30 November 2020, regarding the constitutionality of the interpretation given by the Lisbon Court of Appeal to the rule that defines the regime applicable to the decision that determines the effect of the judicial challenge of the AdC's condemnatory decisions, and on 22 February 2021, EDP Produção was notified that the Constitutional Court dismissed the appeal. In this context, EDP Produção, on 15 April 2021, filed a complaint to the Conference of the Constitutional Court to challenge the Summary Decision of non-admission rendered and strive for the admission of its constitutionality appeal, pending decision. It is also awaiting the appointment by the TCRS of the hearing of the appeal filed.

The EDP Group considers that EDP Produção did not abuse any dominant position, having acted strictly in accordance with the legal framework in force.

On 20 October 2020, EDP Produção became aware, by letter sent by DGEG, of the dispatch of the SEE regarding the approval of the revisibility for the year 2015, which is deducted in the amount of 72.9 million Euros, relating to the alleged overcompensation. In this respect, the EDP Group has registered a provision in the amount of 72.9 million Euros (see note 29), and carried out, on 19 January 2021, an administrative appeal against the order of SEE.

Hydro power plants of Fridão and Alvito

On 17 December 2008, EDP Produção and the Portuguese State signed the Contract for the Implementation of the National Program for High Hydroelectric Potential Power Plants (PNBEPH) regarding the Hydro Power Plants of Fridão (AHF) and Alvito (AHA), with the payment, by EDP Produção of 231.700 thousand Euros. Of this amount, 217,798 thousand Euros relates to the right to implement and exploit the AHF.

EDP Produção followed up on the procedures for the implementation of these projects, having, in the case of the AHF, obtained a Favorable Environmental Impact Declaration and an Environmental Compliance Report of the Execution Project (RECAPE).

On 22 October 2013, EDP Produção requested to the Minister of the Environment, Land Management and Energy, based on a change of circumstances, to postpone the signing of the concession contract for the AHF. This request was formally rejected on 2 May 2014, and the terms of the concession contract, were subsequently negotiated between EDP Produção and the Portuguese Environmental Agency (APA) and a specific date for the respective signature for 30 September 2015, which was revoked by the Government without rescheduling a new date.

In 2016, following the beginning of the XXI Constitutional Government, the Government Program provided the reassessment of the PNBEPH. In this context, it was agreed to suspend for three years the execution of the Contract for the implementation of the AHF, as well as the annulment of the implementation Contract regarding AHA, through a Memorandum of Understanding signed on 5 December 2016, concluded by an agreement between the Portuguese State and EDP Produção on 11 April 2017.

This deferral decision was taken based on public interest reasons, considering the evolution of installed power and energy demand since 2008 (conclusion date of the Implementation Contract) until 2016. It is not clear that the AHF would be an energy surplus that would offset the environmental impacts resulting from its implementation.

On 16 April 2019 EDP Produção received, by email, an official letter from the Ministry of the Environment and Energy Transition, dated 11 April 2019, informing the State's conclusion that there is no need for implementation of AHF to meet national targets for Renewable Energy Source and Greenhouse Gas Reduction, as well as "that the State does not find any reason to inhibit the construction of the Fridão Hydro Power Plant".

Simultaneously, the Minister of the Environment and Energy Transition (MATE) announced at the National Assembly, in a hearing at the Environment, Land-use Planning, Decentralization, Local Power and Housing Committee, that the State's decision was not to build the AHF and that "the State will always comply with the contract but believes there are no reasons for any repayment of the amount that was given to the State ten years ago". It acknowledged, however, that there was no agreement with EDP on this matter.

EDP Produção notified the Portuguese State to clarify that at no time did EDP express its intention to not proceed with the construction of power plant and to return all the investment already made, including the consideration paid on the provisional award, and, as well, to compensate it for other losses and damages resulting from the non-compliance, to be settled in a timely manner. As at 31 December 2019 the Group reclassified these Assets under construction to Other debtors and other assets and valued in accordance with the principles defined in IFRS 9 (see note 22).

Currently, the arbitral proceedings, initiated by EDP Produção in 24 January 2020 are in progress, having the Portuguese State submitted a rejoinder on 20 November 2020. A preliminary hearing was held in the first quarter of 2021 and the trial hearing during April 2021, with only a final decision expected for the second half of 2021.

Sale of the portfolio of Hydroelectric Projects

The project for the sale of the portfolio of Hydroelectric Projects ("AH") located in the Douro basin falls within the scope of EDP's strategic plan for 2019-2022, as presented to the market in March 2019 and reinforced with EDP's Strategic Plan 2021-2025 presented in February 2021, in particular within the scope of the balancing strategy of portfolio and capital reallocation, as a way to finance new investments, particularly in renewable energy, including in Portugal.

The transaction was concluded on 16 December 2020, through the sale of the entire share capital of the company Camirengia Hidroelétricos S.A. ("Camirengia"), by its sole shareholder, EDP - Energias de Portugal, S.A. ("EDP"), to the company Movhera - Hidroeléctricas do Norte, S.A. (previously known as Águas profundas, S.A., company incorporated in Portugal and therefore resident for tax purposes in Portugal, owned by the consortium formed by GDF International SAS, from ENGIE Group, by 40%, Mirova S.A. by 35% and Predica Prevoyance Dialogue du Credit Agricole, S.A. in 25%). The company Camirengia was incorporated under the simple demerger of EDP - Gestão da Produção de Energia, S.A. ("EDP Produção"), and for which complex net assets were detached from EDP Produção, comprised not only by the titles of use of the hydric resources related to the AH portfolio mentioned above, but also by a multiplicity of assets, liabilities, resources and contractual positions associated and necessary for the development of the exploration activity.

From a strictly operational, regulatory, technical and legal point of view, the demerger was the only viable and feasible option to proceed with the detachment of the AH portfolio, considering its size and complexity. In this sense, EDP followed the only model, the demerger and the subsequent sale of shares, that guaranteed the continuity of operations and the maintenance of all the commitments (including environmental commitments and commitments to municipalities) necessary for the AH normal operation in question and also to responded to the need of the buyer of acquiring a functional and autonomous company that would ensure the operation of all activity, without disruption, immediately after the sale -concerns that were also concerns of the regulator. On the other hand, the contractual model used in the implementation of the transaction is fully in line with market standards.

After its conclusion, the transaction was subject to media attention, based on the assumption that it constitutes a transfer of concessions and that, therefore, would be subject to the rate foreseen in paragraph 27.2 of General Table attached to the Stamp Duty Code. In EDP's view, that assumption is not at all applicable, and Stamp Duty Tax is not due,as the transation did not entail a transfer of concessions, but rather a demerge followed by the sale of the entire share capital of a company (Camirengia) holder of the patrimonial assets assigned to AH, in no case dealing with transactions subject to taxation under the Stamp Duty Tax.

In this context, on 16 March 2021, the President of the EDP Executive Board of Directors was requested to attend the National Assembly for the Environment, Energy and Spatial Planning Commission, in order to address the abovementioned transaction, where EDP had the opportunity to clarify all questions addressed by the Members present. In addition, on 1 April 2021, that Commission sent EDP a request for information and questions about the transaction. On 15 April, EDP, committed to contributing to the swift, full and definitive clarification of the questions that were presented, sent the National Assembly an answer to all the questions raised, and made available all the requested documentation, despite its private and confidential nature, as a testament to the collaborative, transparent and good faith attitude with which EDP has guided its relationship with the State and its institutions.

EDP scrupulously fulfills all of its obligations, including tax obligations, adopting very strict practices in the technical framework of all issues, having made this transaction under the tax framework applicable, assessing the tax rules in force on the date of the transaction, a framework that was also subject to validation by Opinions requested from reputable tax experts.

5. Financial Risk Management Policies

The Group monitors regularly the financial risks to which it has exposure to. During the first quarter of 2021, considering the COVID-19 pandemic and the impacts on the markets, namely on interest and foreign exchange rates to which the Group has exposure to, once again it concluded that the current Financial Risk Management Policies already incorporate worst case scenarios sufficiently conservative and therefore adequate to the Group profile, not being necessary its revision. However, given that the pandemic duration and global impacts are still unknown, the EDP Group continues to monitor the risks, seeking to anticipate and manage possible impacts not currently contemplated.

Exchange-rate and interest rate risk management

Sensitivity analysis - exchange rate

Regarding the financial instruments that result in an exchange rate risk exposure, a fluctuation of 10% in the EUR/USD exchange rate, as at 31 March 2021 and 2020, would lead to an increase/(decrease) in the EDP Group results and/or equity as follows:

	Mar 2021
	Profit or loss		Equity
Thousand Euros	+10%	-10%	+10%	-10%
USD	-28,906	35,329	-64,518	78,855

		Mar 2020
	Profit or loss		Equity
Thousand Euros	+10%	-10%	+10%	-10%
USD	1,106	-1,351	-168,187	205,562

This analysis assumes that all other variables, namely interest rates, remain unchanged.

Sensitivity analysis - Interest rates (excluding the Brazilian operations)

Based on the Group's debt portfolio, except for Brazil, and the related derivative financial instruments used to hedge the related interest rate risk, a 50 basis points change in the reference interest rates at 31 March 2021 and 2020 would lead to an increase/(decrease) in the EDP Group results and/or equity as follows:

50 bp	50 bp	50 bp	50 bp
increase	decrease	increase	decrease

-10,052	10,052	-	-
-966	966	-	-

-	-	6,040	-6,040
5,113	-5,113	-	-
-5,905	5,905	6,040	-6,040
		Profit or loss	Mar 2021 Equity

		Mar 2020
	Profit or loss		Equity
	50 bp	50 bp	50 bp	50 bp
Thousand Euros	increase	decrease	increase	decrease
Cash flow effect:
Hedged debt	-12,302	12,302	-	-
Unhedged debt	-4,473	4,473	-	-
Fair value effect:
Cash flow hedging derivatives	-	-	6,606	-6,606
Trading derivatives (accounting perspective)	-1,298	1,307	-	-
	-18,073	18,082	6,606	-6,606

This analysis assumes that all other variables, namely exchange rates, remain unchanged.

Brazil - Sensitivity analysis - Interest rates

Based on the portfolio of operations, a 25% change in the interest rates, to which the Brazilian subsidiaries are exposed to, would have an impact to EDP Energias do Brasil Group, at 31 March 2021 and 2020, in the amount of:

	Mar 2021
Thousand Euros	+ 25%	- 25%
Financial instruments - assets	5,245	-4,916
Financial instruments - liabilities	-76,457	73,222
Derivative financial instruments	-4,142	4,490
	-75,354	72,796

	Mar 2020
Thousand Euros	+ 25%	- 25%
Financial instruments - assets	3,039	-2,945
Financial instruments - liabilities	-122,682	108,847
Derivative financial instruments	-	-
	-119,643	105,902

Liquidity risk management

The EDP Group undertakes management of liquidity risk through the engagement and maintenance of credit lines and financing facilities, with a firm underwriting commitment with international reliable financial institutions, as well as term deposits, allowing immediate access to funds. These credit lines are used to complement and backup national and international commercial paper programmes, allowing the EDP Group's shortterm financing sources to be diversified (see note 27). Considering the COVID-19 pandemic, the Group assessed the potential impacts on additional liquidity needs, having concluded that the current Liquidity Risk Management Policy remains adequate.

The table below shows the contractual undiscounted cash flows and the estimated interests due, computed using the rates available at 31 March 2021:

						Following
Thousand Euros	Mar 2022	Dec 2022	Dec 2023	Dec 2024	Dec 2025	years	Total
Bank loans	310,541	101,665	159,185	106,475	77,133	520,916	1,275,915
Bond loans	1,250,826	164,815	1,935,977	2,386,663	1,644,349	4,252,206	11,634,836
Hybrid Bond	52,530	-	-	-	-	2,500,000	2,552,530
Commercial paper	123,783	14,835	95,949	44,504	309,168	-	588,239
Other loans	2,786	995	1,202	1,011	1,031	26,647	33,672
Interest Payments (i)	395,809	449,154	507,834	363,437	266,793	871,082	2,854,109
	2,136,275	731,464	2,700,147	2,902,090	2,298,474	8,170,851	18,939,301

(i) The coupons of the hybrid bonds were included taking into consideration the earliest possible call date.

Energy market risk management

The main price and volume risk indicator used is the margin at risk (P@R), which estimates the impact of the variation of the different risk factors (price of electricity and hydrological) on the next 24 month's margin, P@R corresponding to the difference between an expected margin and a margin of a pessimistic scenario with a probability to occur of 5% (confidence interval of 95%) considering a time frame of 2 years. Both the volumes which are certain and those, which although uncertain, are expected, namely production of the plants and the corresponding consumption of fuel, are considered. The P@R distribution by business segment is as follows:

		P@R Distribution by business segment
Thousand Euros		Mar 2021	Dec 2020
Business	Portfolio
Electricity	Trading	4,849	5,000
Electricity	Trading + Hedging	128,855	80,412
Gas	Hedging	21,224	38,725
Diversification effect		-20,161	-26,668
		134,767	97,469

Regarding credit risk, the quantification of exposure considers the amount and type of transaction (e.g. swap or forward), the rating of the counterparty risk that depends on the probability of default and the expected value of credit to recover, which varies depending on the guarantees received or the existence of netting agreements. The EDP Group's exposure to credit risk rating is as follows:

	Mar 2021	Dec 2020
Credit risk rating (S&P)
AAA to AA-	0,00%	4.44%
A+ to A-	31.87%	26.08%
BBB+ to BBB-	51.33%	60.95%
No rating assigned	16.80%	8.53%
	100.00%	100.00%

6. Consolidation Perimeter

During the first quarter of 2021, the following changes occurred in the EDP Group consolidation perimeter:

Companies acquired:

The following acquisitions were classified as asset purchases, out of scope of IFRS 3 – Business Combinations, due to the substance of these transactions, the type of assets acquired and the very early stage of the projects:

EDP Renováveis, S.A. and EDP Renewables Europe, S.L.U. acquired 100% of the company Aioliki Oitis Energiaki Single-Member LLC; and
EDP Renewables Europe, S.L.U. acquired 51% of the companies Enercoplan and Sofrano.

Additionally, the following companies were acquired:

EDP Energia Itália S.R.L. acquired 100% of the company Enertel Group S.r.l.;
EDP Ventures Brasil S.A. acquired 28% of the company Blue Sol Participações S.A.; and
In the first quarter of 2021, EDP Renováveis, SA acquired, through a North American subsidiary, an 85% stake in a distributed solar generation portfolio that includes 89 MW of operating capacity and is about to be completed and a portfolio in-state advanced development of about 120 MW, distributed by approximately 200 projects, for an amount of 66 million Euros (79 million US Dollar).

This transaction was framed within the scope of IFRS 3 - Concentration of business activities.

Regarding the acquisition date, the book value of the net assets of this portfolio amounted to 48 million Euros (58 million US Dollar), and an evaluation is still in progress to determine its fair value allocation.

Sale of companies with loss of control:

● The companies CIDE HC Energía, S.A. (CHC Energía) and Comercializador de Referencia Energético, S.L.U. , in which EDP Iberia, S.L. held, directly or indirectly, a 50% financial interest, were sold. This transaction generated a gain in the amount of 20,705 thousand Euros (see note 18).

Companies sold and liquidated:

The company SGORME - Sociedade Gestora de Operações da Rede de Mobilidade Eléctrica, S.A., in which E-Redes - Energia S.A. held, directly or indirectly, a 91% financial interest, was liquidated;
2 companies in North America were liquidated.

Companies incorporated:

● 3 companies incorporated in North America.

7. Revenues and cost of Energy Sales and Services and Other

Revenues from energy sales and services and other, by sector, are as follows:

	Group		Company
Thousand Euros	Mar 2021	Mar 2020	Mar 2021	Mar 2020
Electricity and network access	2,755,350	3,041,623	567,028	602,303
Gas and network access	114,531	286,984	44,982	40,915
Revenue from assets assigned to concessions	154,355	134,115	-	-
Other	63,807	39,240	44,490	40,813
	3,088,043	3,501,962	656,500	684,031

The caption Electricity and network access in Portugal, on a consolidated basis, includes a net revenue of 393,751 thousand Euros (revenue in 31 March 2020: 320,445 thousand Euros) regarding tariff adjustments of the period (see notes 21 and 31). This caption also includes a net cost of 8,295 thousand Euros (31 March 2020: net revenue of 9,470 thousand Euros) related to recognition of tariff adjustments for the period in Brazil (see note 31).

Additionally, the caption Electricity and network access includes, on a consolidated basis, a positive amount of 24,136 thousand Euros (31 March 2020: negative amount of 19,925 thousand Euros) related to the contractual stability compensation (CMEC) as a result of the power purchase agreements (PPA) termination, including an income of 18,793 thousand Euros related to the CMEC final adjustment (31 March 2020: positive amount of 23,479 thousand Euros), net from the recognised provision due to the final adjustment official approval.

The caption Electricity and network access, on a company basis, includes 267,840 thousand Euros (31 March 2020: 317,528 thousand Euros) related with energy sales under the purchase and sale agreement of evolutive energy between EDP, S.A. and EDP Comercial S.A.

The breakdown of Revenues from energy sales and services and other by segment, are as follows (see note 41 - Operating Segments):

	Mar 2021
	Reported Operating Segments
Thousand Euros	Renewables	Networks	Client Solutions & Energy Management	Total	Other Segments	Group
Electricity and network access	302,218	235,226	2,217,908	2,755,352	-1	2,755,351
Gas and network access	-	9	114,522	114,531	-	114,531
Revenue from assets assigned to concessions	-	154,354	1	154,355	-	154,355
Other	15,945	19,089	24,919	59,953	3,853	63,806
	318,163	408,678	2,357,350	3,084,191	3,852	3,088,043

	Mar 2020
	Reported Operating Segments
Thousand Euros	Renewables	Networks	Client Solutions & Energy Management	Total	Other Segments	Group
Electricity and network access	342,485	168,984	2,530,157	3,041,626	-3	3,041,623
Gas and network access	-	3,957	283,027	286,984	-	286,984
Revenue from assets assigned to concessions	-	134,115	-	134,115	-	134,115
Other	9,550	11,312	17,340	38,202	1,038	39,240
	352,035	318,368	2,830,524	3,500,927	1,035	3,501,962

The segment "Client Solutions & Energy Management" includes sales of renewable energy, hydro and wind, carried out by EDP SA's energy management business unit, as part of its intermediation activity.

Revenues from energy sales and services and other by segment are considered globally as "overtime" and not as "at a point in time".

Cost of energy sales and other are as follows:

	Group		Company
Thousand Euros	Mar 2021	Mar 2020	Mar 2021	Mar 2020
Cost of electricity	1,484,718	1,503,827	566,771	559,617
Cost of gas	118,357	299,137	-	-
Expenditure with assets assigned to concessions	128,577	109,972	-	-
Changes in inventories and cost of raw materials and consumables used
Fuel, steam and ashes	37,398	29,539	-	-
Gas	14,331	49,078	53,004	36,686
CO2 Licenses	24,225	31,494	276	-
Other	-27,524	4,090	35,904	-37,866
	48,430	114,201	89,184	-1,180
	1,780,082	2,027,137	655,955	558,437

Cost of electricity includes, on a company basis, costs of 235,880 thousand Euros (31 March 2020: 304,033 thousand Euros) with the purchase of energy under the agreement for management, purchase and resale of energy signed between EDP, S.A. and EDP Gestão da Produção de Energia, S.A.

Under the terms of concession contracts of EDP Group to which IFRIC 12 is applicable, the construction activities are outsourced to external specialised entities. The revenue and the expenditure with the acquisition of these assets are as follows:

	Group
Thousand Euros	Mar 2021	Mar 2020
Revenue from assets assigned to concessions	154,355	134,115

Expenditure with assets assigned to concessions
Subcontracts and other materials	-93,365	-84,227
Personnel costs capitalised (see note 10)	-19,525	-18,232
Capitalised borrowing costs (see note 13)	-15,687	-7,513
	-128,577	-109,972

Revenue from assets assigned to concessions include 86,713 thousand Euros relative to electricity distribution concessions in Portugal and in Brazil resulting from the application of the mixed model. Additionally, it also includes the revenue related to the asset to be received by EDP Group under the transmission concessions in Brazil (see note 21).

On a consolidated basis, the variation of the caption Revenues and cost of Energy Sales and Services and Other is essentially explained by the changes in consolidation perimeter that occurred in 2020 and by the devaluation of the Brazilian Real against the Euro.

8. Other Income

Other income, for the Group, are as follows:

	Group
Thousand Euros	Mar 2021	Mar 2020
Income arising from institutional partnerships (see note 30)	44,691	51,081
Gains from contractual indemnities and insurance companies	16,301	8,530
Other	32,398	36,327
	93,390	95,938

Income arising from institutional partnerships relates to income arising from production and investment tax credits (PTC/ITC), mostly from accelerated tax depreciation, regarding wind farms and solar plants in North America (see note 30).

The caption Other includes gains on the reinsurance activity and gains on the sale of property, plant and equipment.

9. Supplies and Services

Supplies and services are as follows:

	Group		Company
Thousand Euros	Mar 2021	Mar 2020	Mar 2021	Mar 2020
Consumables and communications	6,272	7,478	1,622	2,087
Rents and leases	10,667	11,227	2,713	3,184
Maintenance and repairs	73,411	84,505	2,212	5,964
Specialised works:
- Commercial activity	33,702	36,780	97	257
- IT services, legal and advisory fees	34,894	20,875	17,713	10,490
- Other services	12,072	13,032	6,744	6,036
Provided personnel	-	-	1,644	1,935
Other supplies and services	23,811	27,114	1,864	3,532
	194,829	201,011	34,609	33,485

10. Personnel Costs and Employee Benefits

Personnel costs and employee benefits are as follows:

	Group		Company
Thousand Euros	Mar 2021	Mar 2020	Mar 2021	Mar 2020
Personnel costs
Board of Directors remuneration	3,852	4,839	1,437	1,780
Employees' remuneration	122,660	121,302	11,945	10,842
Social charges on remuneration	29,351	29,016	2,794	2,673
Performance, assiduity and seniority bonus	20,305	19,612	5,005	3,352
Other costs	4,451	6,032	495	97
Own work capitalised:
- Assigned to concessions (see note 7)	-19,525	-18,232	-	-
- Other (see note 14)	-18,732	-15,302	-1,582	-
	142,362	147,267	20,094	18,744
Employee benefits
Pension plans costs	5,014	5,171	383	494
Medical plans costs and other benefits (see note 28)	2,100	1,726	52	22
Other	12,335	10,867	817	661
	19,449	17,764	1,252	1,177
	161,811	165,031	21,346	19,921

Pension plans costs include 1,308 thousand Euros (31 March 2020: 1,512 thousand Euros) related to defined benefit plans (see note 28) and 3,706 thousand Euros (31 March 2020: 3,659 thousand Euros) related with defined contribution plans.

During the first quarter of 2021, no treasury stocks were granted to employees.

11. Other Expenses

Other Expenses are as follows:

	Group
Thousand Euros	Mar 2021	Mar 2020
Concession rents paid to local authorities and others	73,006	69,350
Direct and indirect taxes	97,194	113,718
Donations	2,516	4,469
Other	19,501	22,088
	192,217	209,625

The caption Concession rents paid to local authorities and others includes essentially the rents paid to the local authorities under the terms of the low tension electricity distribution concession contracts and rents paid to city councils where the power plants are located.

The caption Direct and indirect taxes includes the tax of 7% over electricity generation in Spain, property tax, clawback and other taxes and levies.

The caption Other includes losses on the reinsurance activity and losses on the sale of property, plant and equipment.

12. Financial Income and Expenses

Financial income and expenses, for the Group, are as follows:

	Group
Thousand Euros	Mar 2021	Mar 2020
Financial income
Interest income from bank deposits and other investments	2,493	9,203
Interest from derivative financial instruments	4,086	7,906
Interest income on tariff deficit:
- Portugal - Electricity (see note 21)	773	505
- Brazil - Electricity (see note 31)	190	388
Other interest income	13,380	11,940
Derivative financial instruments	36,272	9,079
Foreign exchange gains	31,356	67,165
CMEC:
- Interest on the initial CMEC	6,834	7,642
- Financial effect considered in the calculation	1,797	1,948
Other financial income	3,939	9,621
	101,120	125,397

Financial expenses
Interest expense on financial debt	120,679	130,008
Bonds buyback	-	56,897
Capitalised borrowing costs:
- Assigned to concessions (see note 7)	-15,687	-7,513
- Other (see note 14)	-8,123	-4,844
Interest from derivative financial instruments	8,669	8,413
Interest expense on tariff deficit:
- Portugal - Electricity (see note 31)	-	17
- Brazil - Electricity (see note 31)	699	3,939
Other interest expense	6,214	4,832
Derivative financial instruments	4,909	23,383
Foreign exchange losses	44,877	57,404
CMEC	1,920	2,600
Unwinding of discounted liabilities	32,790	32,412
Unwinding of lease liabilities (rents due from lease contracts) (see note 32)	9,859	8,963
Net interest on the net pensions plan liability (see note 28)	802	1,740
Net interest on the medical liabilities and other benefits (see note 28)	2,843	4,121
Losses on the sale of the electricity tariff deficit - Portugal	-	1,037
Other financial expenses	13,775	7,805
	224,226	331,214
Financial income/(expenses)	-123,106	-205,817

Capitalised borrowing costs includes the interest capitalised in assets under construction according to Group accounting policy. Regarding the rate applicable to borrowing costs related with tangible/intangible assets under construction that is used in the determination of the amount of borrowing costs eligible for capitalisation (see notes 14 and 16), it varies depending on business unit, the country and currency, since EDP Group incorporates in its scope of consolidation a significant number of subsidiaries in several geographies with different currencies.

The Unwinding of discounted liabilities refers essentially to: (i) the unwinding of the dismantling and decommissioning provision for wind generation assets of 1,237 thousand Euros (31 March 2020: 2,190 thousand Euros) (see note 29); (ii) the implied financial return in institutional partnerships of 18,914 thousand Euros (31 March 2020: 22,257 thousand Euros) (see note 30); and (iii) the financial expenses related to the discount of the liability associated to the concessions of Alqueva/Pedrógão, Investco and Enerpeixe of 8,945 thousand Euros (31 March 2020: 4,596 thousand Euros).

The Derivative financial instruments caption includes income and expenses related with financial assets and liabilities measured and fair value through profit and loss, while the remaining captions of financial income and expenses are registered at amortised cost, based on the effective interest rate method.

Financial income and expenses, for the Company, are as follows:

	Company
Thousand Euros	Mar 2021	Mar 2020
Financial income
Interest income from loans to subsidiaries and related parties (see note 37)	9,425	13,324
Interest from derivative financial instruments	20,931	38,636
Derivative financial instruments	111,125	77,872
Income from equity investments (see note 37)	850	-
Other financial income	35,077	22,664
	177,408	152,496

Financial expenses
Interest expense on financial debt	45,008	48,660
Bonds Buyback	-	56,897
Interest from derivative financial instruments	25,482	40,363
Derivative financial instruments	84,079	161,508
Unwinding of lease liabilities (rents due from lease contracts)	1,535	1,371
Other financial expenses	3,390	6,885
	159,494	315,684
Financial income/(expenses)	17,914	-163,188

The caption Other financial income includes 1,695 thousand Euros related to nominal interests from bonds issued by EDP Finance B.V., repurchased by EDP S.A. (see notes 22 and 37). The effective interest of these instruments amounts to 157 thousand Euros (includes the recognition of premium and transaction costs associated with the buyback transaction by the effective interest rate method).

The fluctuation of Financial Costs and Profit in EDP Group is mainly explained by the reduction of the cost of debt, both by a reduction of the average cost of debt and by the debt buyback occurred in 2020, with an impact of 56,897 thousand Euros.

The fluctuation on Financial Results, on an individual basis, is mainly explained by the above-mentioned point for EDP Group, but as well as by significant gains in derivative financial instruments related to debt.

13. Income Tax

The following note includes an analysis on the reconciliation between the theoretical and the effective income tax rate applicable at the level of the EDP Group, on a consolidated basis. In general terms, this analysis aims to quantify the impact of the income tax, recognised in the income statement, which includes both current and deferred tax.

Relevant events for EDP Group with impact in 2021

EDP is monitoring, in the countries where it is present, tax measures designed to help mitigate the economic effects of the COVID-19 outbreak. To date, these measures have not constitute material impacts in the geographies where the EDP Group is present.

The Spanish state budget for 2021 introduced amendments to the participation exemption regime, under which the exemption for dividends and capital gains from domestic and foreign subsidiaries would be limited to 95% of the income. Given the standard Corporate Income Tax (CIT) rate in Spain, the effective tax rate on dividends and capital gains derived by Spanish companies would be 1.25%, not susceptible of elimination under Spanish CIT group taxation.

The statutory corporate income tax rates applicable in the main countries in which EDP Group operates which were updated are as follows:

	Mar 2021	Mar 2020
Europe:
France	26,5% - 27,5%	28% - 32.02%
Spain	24% - 25%	25% - 26%

Corporate income tax provision

Income tax expense is as follows:

	Group		Company
Thousand Euros	Mar 2021	Mar 2020	Mar 2021	Mar 2020
Current tax	26,898	-210,847	10,293	20,095
Deferred tax	-89,688	118,421	7,710	-89
	-62,790	-92,426	18,003	20,006

Reconciliation between the theoretical and the effective income tax expense

The effective income tax rate is as follows:

	Group		Company
Thousand Euros	Mar 2021	Mar 2020	Mar 2021	Mar 2020
Profit before tax and CESE	372,688	391,172	-42,593	-96,059
Income tax expense	-62,790	-92,426	18,003	20,006
Effective income tax rate	16.8%	23.6%	42.3%	20.8%

The difference between the theoretical and the effective income tax expense results from the application of the law provisions, in the various countries where EDP operates, in the determination of the taxable base, as demonstrated below.

The reconciliation between the theoretical and the effective income tax expense for the Group, in March 2021 and 2020, is as follows:

Thousand Euros	Mar 2021	Mar 2020
Profit before income tax and CESE	372,688	391,172
Theoretical income tax rate *	29.5%	29.5%
Theoretical income tax expense	109,943	115,396

Different tax rates (includes state surcharge) and CIT rate changes	-5,138	2,175
Tax losses and tax credits	-13,918	2,420
Tax benefits	-3,787	-5,802
Differences between accounting and fiscal provisions/depreciations	383	-1,046
Accounting/fiscal differences on the recognition/derecognition of assets	-5,021	-868
Taxable differences attributable to non-controlling interests	-2,998	-3,713
Other adjustments and changes in estimates	-16,674	-16,136
Effective income tax expense as per the Consolidated Income Statement	62,790	92,426

* Average tax rate considering the different tax rates applicable to EDP Group companies in Portugal.

14. Property, Plant and Equipment

This caption is as follows, for the Group:

Thousand Euros	Land and natural resources	Buildings and other constructions	Plant and machinery	Other tangible assets	Assets under construction	Total
Gross Amount	73,719	364,977	35,380,643	570,473	3,270,953	39,660,765
Accumul. depreciation and impairment losses	-	163,682	18,730,563	425,278	80,872	19,400,395
Carrying Amount at 31 March 2021	73,719	201,295	16,650,080	145,195	3,190,081	20,260,370

Balance as at 31 December 2020	74,057	200,711	17,032,113	137,422	2,718,918	20,163,221
Additions	757	630	7,895	7,614	416,239	433,135
Depreciation and impairment	-	-2,105	-219,089	-10,580	-	-231,774
Disposals/Write-offs	-58	-23	-2,282	-395	-175	-2,933
Transfers	-	7,269	-461,444	8,268	-95,220	-541,127
Exchange Difference	-1,037	-5,889	233,482	233	59,049	285,838
Perimeter Variations	-	702	59,405	2,633	91,270	154,010
Balance as at 31 March 2021	73,719	201,295	16,650,080	145,195	3,190,081	20,260,370

Gross amount of Assets under construction are as follows:

Thousand Euros	Mar 2021	Dec 2020
Wind and solar farms in North America	1,834,053	1,485,274
Wind and solar farms in Europe	719,815	643,396
Hydric Portugal	52,532	43,943
Other assets under construction	664,553	627,806
	3,270,953	2,800,419

The capitalised costs for Property, plant and equipment for the period, except Land and natural resources, are as follows:

Thousand Euros	Mar 2021
Subcontracts and other materials	398,168
Purchase price allocation	5,278
Dismantling and decommissioning costs (see note 29)	2,077
Personnel costs (see note 10)	18,732
Borrowing costs (see note 12)	8,123
	432,378

Additions include the investment in wind and solar farms by North America, Europe and Brazil. In Portugal, the Group is carrying out hydroelectric investments in several power plants (Ribeiradio-Ermida and Alqueva I) and improvements and repairs in thermoelectric power plants (Lares and Ribatejo).

Transfers refers to the transfer of North America onshore wind to non-current assets held for sale, by the net amount of 541,127 thousand Euros (cost in the amount of 556,947 thousand Euros and accumulated depreciation and impairment losses in the amount of 15,820 thousand Euros) (see note 34).

The movement in Exchange differences in the period results mainly from the appreciation of US Dollar, against the Euro.

Perimeter Variations mainly include the acquisition of a solar distributed generation portfolio (see note 6).

15. Right of use assets

This caption is as follows, for the Group:

Thousand Euros	Land and natural resources	Buildings and other construc tions	Plant and machinery	Other tangible assets	Total
Gross amount	692,376	256,238	154,382	11,965	1,114,961
Accumulated depreciation and impairment losses	55,727	50,795	12,319	7,351	126,192
Carrying Amount at 31 March 2021	636,649	205,443	142,063	4,614	988,769

Balance as at 31 December 2020	674,340	204,998	146,034	4,821	1,030,193
Additions (see note 39)	2,105	6,649	1,265	711	10,730
Depreciation and impairment	-6,795	-5,864	-5,138	-695	-18,492
Disposals/Write-offs	-3	-353	-	-157	-513
Transfers	-52,048	-	-	-	-52,048
Exchange Difference	19,044	13	-98	-58	18,901
Perimeter Variations	6	-	-	-8	-2
Balance as at 31 March 2021	636,649	205,443	142,063	4,614	988,769

Additions include, essentially, new lease contracts registered, under IFRS16, in EDP Brazil.

Transfers include the transfer to held for sale of Onshore wind assets (see note 34).

16. Intangible Assets

This caption is as follows, for the Group:

Thousand Euros	Concession rights	CO2 Licenses	Other intangibles	Intangible assets in progress	Total
Gross amount	12,348,686	200,020	2,248,535	176,088	14,973,329
Accumulated depreciation and impairment losses	9,319,673	-	684,899	-	10,004,572
Carrying Amount at 31 March 2021	3,029,013	200,020	1,563,636	176,088	4,968,757

Balance as at 31 December 2020	3,064,184	198,555	1,565,654	169,842	4,998,235
Additions	135	1,465	8,124	20,231	29,955
Depreciation and impairment	-87,989	-	-21,191	-	-109,180
Disposals/Write-offs	-1,259	-	-15	-	-1,274
Transfers	72,724	-	10,505	-10,913	72,316
Exchange Difference	-22,326	-	559	-626	-22,393
Perimeter Variations	3,544	-	-	-2,446	1,098
Balance as at 31 March 2021	3,029,013	200,020	1,563,636	176,088	4,968,757

Additions of Intangible assets in progress essentially include the implementation and development of information systems projects.

Transfers refer to the intangible assets assigned to concessions that became operational, in the amount of 72,316 thousand Euros (see note 21).

The capitalised costs of the period related to construction of intangible assets are included in own work capitalised in notes 7, 10 and 12.

17. Goodwill

Goodwill for the Group, resulting from the difference between the acquisition price and the fair value of the net assets acquired, at the acquisition date, is organized by segment, and is as follows:

Thousand Euros	Balance at 1 January	Increases	Decreases	Impairment	Exchange differences	Balance at 31 March
Renewables	1,651,582	-	-	-	29,243	1,680,825
Networks	644,173	-	-	-	-	644,173
Client Solutions & Energy Management	10,548	5,724	-	-	-274	15,998
	2,306,303	5,724	-	-	28,969	2,340,996

Client Solutions & Energy Management

In the first quarter of 2021, EDP Energia Italia S.r.l. acquired 100% of Enertel Group S.r.l. for the amount of 5,980 thousand Euros and generated goodwill in the amount of 5,724 thousand Euros (see note 6).

18. Investments in Joint Ventures and Associates

This caption is as follows:

	Group
Thousand Euros	Mar 2021	Dec 2020
Investments in joint ventures	1,055,476	753,056
Investments in associates	194,863	187,306
	1,250,339	940,362

As at 31 March 2021, for the Group, this caption includes goodwill in investments in joint ventures of 8,047 thousand Euros (31 December 2020: 8,047 thousand Euros) and goodwill in investments in associates of 27,002 thousand Euros (31 December 2020: 24,599 thousand Euros).

The movement in Investments in joint ventures and associates, for the Group, is as follows:

	Group
Thousand Euros	Mar 2021	Dec 2020
Balance at the beginning of the period	940,362	1,098,512
Acquisitions/Entries	37,354	71,495
Increases/Decreases of share capital	271,068	126,647
Disposals	-	-79,833
Share of profit in joint ventures and associates	-7,286	6,938
Dividends	-5,437	-52,739
Exchange differences	1,731	-187,621
Cash flow hedging reserve	10,293	-1,642
Transfer to Assets held for sale (see note 34)	-6,263	-10,103
Other	8,517	-31,292
Balance at the end of the period	1,250,339	940,362

The caption Share of profit in joint ventures and associates includes a negative amount of 7,286 thousand Euros from result of these investments and a gain of 20,705 thousand Euros from the sale of CIDE HC Energía, S.A. (see note 6).

The caption Increases/Decreases of share capital essentially refers to a capital increase of 268,943 thousand Euros of EDP Renováveis S.A. in OW Offshores, S.L.

19. Equity Instruments at Fair Value

As at 31 March 2021, the movements in Equity Instruments measured at Fair Value are as follows:

	Group
Thousand Euros	Mar 2021	Dec 2020
Equity Instruments at Fair Value through Other Comprehensive Income (OCI)	117,649	117,111
Equity Instruments at Fair Value through Results (PL)	68,484	67,637
	186,133	184,748

As at 31 March 2021, this caption is analysed as follows:

		Other Comprehensive Income		Results
Thousand Euros	Mercer and Dunas Funds (Energia RE portfolio)	Other	EDA - Electricidade dos Açores, S.A.	Feedzai - Consultadoria e Inov. Tecn., S.A.	Other	Total
Balance as at 31 December 2020	89,821	27,290	15,286	46,814	5,537	184,748
Acquisitions	-	14	-	-	864	878
Change in fair value (see note 25)	730	-313	-	-	-	417
Other variations	-	107	-	-	-17	90
Balance as at 31 March 2021	90,551	27,098	15,286	46,814	6,384	186,133

Under IFRS 13 (see note 38), equity instruments at fair value are classified into three levels of fair value: level 1 includes essentially financial investments that are indexed to quoted market prices; level 2 includes the fund of stocks and bonds held by Energia RE; and level 3 covers all other equity instruments at fair value. As at 31 March 2021, there are no equity instruments at fair value within level 1.

20. Deferred Tax Assets and Liabilities

EDP Group records the tax effect resulting from temporary differences between the assets and liabilities determined on an accounting basis and on a tax basis. As at a 31 March 2021, on a consolidated basis, the movement by nature of Net Deferred Tax Assets and Liabilities are as follows:

Net Deferred Tax Assets
Thousand Euros	Balance at 1 January	Mov. Results	Mov. Reserves	Perimeter variations, exchange differences and others	Balance at 31 March
Tax losses and tax credits	1,023,712	45,735	-	17,370	1,086,817
Provisions for social benefits, bad debts and other risks	722,690	-19,658	-14,922	-35,006	653,104
Financial instruments	95,417	2,930	16,791	6	115,144
Property plant and equipment	412,651	-20,865	-	1,080	392,866
Financial and equity instruments at fair value	2,868	-	-1,936	87	1,019
Tariff adjustments and tariff deficit	37,988	5,318	-	957	44,263
Allocation of fair value to assets and liabilities acquired	92,469	-4,620	-	78	87,927
Fiscal revaluations	304,712	-9,776	-	-	294,936
Use of public property (Brazil)	23,658	1,564	-	-1,322	23,900
Other temporary differences	87,541	-345	-35	786	87,947
Assets/liabilities compensation of deferred taxes	-1,664,163	-46,220	-276	-95,085	-1,805,744
	1,139,543	-45,937	-378	-111,049	982,179

Net Deferred Tax Liabilities
Thousand Euros	Balance at 1 January	Mov. Results	Mov. Reserves	Perimeter variations, exchange differences and others	Balance at 31 March
Provisions for social benefits, bad debts and other risks	14,413	1,224	-	222	15,859
Financial instruments	100,911	3,409	17,278	-743	120,855
Property plant and equipment	366,868	1,166	-2,481	13,091	378,644
Reinvested gains	3,735	-8	-	-	3,727
Financial and equity instruments at fair value	8,959	-	83	-	9,042
Tariff adjustments and tariff deficit	149,690	79,319	-77	902	229,834
Allocation of fair value to assets and liabilities acquired	1,127,652	5,050	-	-2,503	1,130,199
Fiscal revaluations	54,737	-617	-	-	54,120
Deferred income relating to CMEC	187,558	-14,997	-	-	172,561
Gains from institutional partnerships in wind farms	344,092	10,253	14	16,313	370,672
Use of public property (Brazil)	7,737	-86	-	-420	7,231
Fair value of financial assets (Brazil)	47,643	3,762	-	-2,675	48,730
Other temporary differences	64,642	1,496	-	6,904	73,042
Assets/liabilities compensation of deferred taxes	-1,664,163	-46,220	-276	-95,085	-1,805,744
	814,474	43,751	14,541	-63,994	808,772

On a Company basis, EDP, S.A. records the tax effect arising from temporary differences between the assets and liabilities determined on an accounting basis and on a tax basis. As at a 31 March 2021, on a Company basis, the movement by nature of Net Deferred Tax Assets and Liabilities are as follows:

Net Deferred Tax Assets
Thousand Euros	Balance at 1 January	Mov. Results	Mov. Reserves	Others	Balance at 31 March
Tax losses and tax credits	139,397	312	-	-183	139,526
Provisions for social benefits, bad debts and other risks	7,817	222	-	-	8,039
Financial instruments	28,596	7,186	302	-	36,084
Property plant and equipment	3,965	-11	-	-	3,954
Other temporary differences	3,273	-1	-	-	3,272
Assets/liabilities compensation of deferred taxes	-59,422	-11,720	-	-	-71,142
	123,626	-4,012	302	-183	119,733

Net Deferred Tax Liabilities
Thousand Euros	Balance at 1 Mov. Results January	Mov.	Others	Balance at 31
			Reserves		March
Financial instruments	47,681	-	11,722	-	59,403
Allocation of fair value to assets and liabilities acquired	3,546	-	-	-	3,546
Fiscal revaluations	185	-2	-	-	183
Other temporary differences	8,010	-	-	-	8,010
Assets/liabilities compensation of deferred taxes	-59,422	-11,720	-	-	-71,142
	-	-11,722	11,722	-	-

21. Debtors and Other Assets from Commercial Activities

At Group level, Debtors and other assets from commercial activities are as follows:

	Non-Current		Current
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Assets measured at amortised cost:
Amounts receivable from tariff adjustments - Electricity - Portugal	40,226	53,634	14,197	1,036
Amounts receivable from tariff adjustments - Electricity - Brazil (see note 31)	27,879	49,986	47,854	35,600
Debtors for other goods and services	-	-	44,050	29,480
Amounts receivable relating to CMEC	488,638	507,419	193,481	189,752
Amounts receivable from concessions - IFRIC 12	338,438	359,650	753,677	755,565
Other assets measured at amortised cost	63,572	65,125	186,002	175,170
Impairment losses on other assets measured at amortised cost	-	-2,894	-2,835	-1,406
	958,753	1,032,920	1,236,426	1,185,197

Trade receivables at amortised cost:
Trade receivables	25,641	24,896	1,265,247	1,363,760
Impairment losses on trade receivables	-3,215	-8,771	-230,109	-253,067
	22,426	16,125	1,035,138	1,110,693

Assets measured at fair value through other comprehensive income:
Amounts receivable from tariff adjustments - Electricity - Portugal	474,754	267,054	196,997	156,270

Assets measured at fair value through profit or loss:
Amounts receivable from concessions - IFRIC 12	548,312	547,103	-	-

Contract assets:
Contract assets receivable from energy sales contracts	2,355	600	1,071,030	1,034,442
Contract assets receivable from concessions - IFRIC 12	843,789	805,382	-
	846,144	805,982	1,071,030	1,034,442
Other assets:
Incremental costs of obtaining contracts with customers	30,537	33,600	-	-
Other assets from comercial activities	48,327	44,228	79,201	59,009
	78,864	77,828	79,201	59,009
	2,929,253	2,747,012	3,618,792	3,545,611

At Company level, Debtors and other assets from commercial activities are as follows:

	Current
Thousand Euros	Mar 2021	Dec 2020
Assets measured at amortised cost:
Debtors for other goods and services	27,905	40,223
Other assets measured at amortised cost	17,192	246,349
Impairment losses on other assets measured at amortised cost	-1	-1
	45,096	286,571
Trade receivables at amortised cost:
Trade receivables	165,694	214,153
Impairment losses on trade receivables	-209	-209
	165,485	213,944
Contract assets:
Contract assets receivable from energy sales contracts	227,863	226,040

Other assets:
Other assets from comercial activities	16,778	7,371
	455,222	733,926

The movement for the period in Amounts receivable from tariff adjustments - Electricity - Portugal (Non-current and Current) is as follows:

Thousand Euros	Non-Current	Current
Balance as at 31 December 2020	320,688	157,306
Receipts through the electricity tariff	-	-3,061
Tariff adjustment of the period (see note 7)	422,248	-
Fair value of the tariff deficit measured at fair value through other comprehensive income (see note 25)	-617	374
Adjustment due to tariff deficit (2019 and 2020)	-	-171,385
Financial expenses (see note 12)	-	773
Transfer to/from tariff adjustment payable (see note 31)	-	-152
Transfer from Non-Current to Current	-227,339	227,339
Balance as at 31 March 2021	514,980	211,194

As at 31 March 2021, the caption Assets measured at fair value through other comprehensive income includes the amount of the tariff deficit classified and measured at fair value through other comprehensive income. According to IFRS 13, the tariff deficit fair value is classified as level 2 (see note 38).

The following table provides details for the caption Amounts receivable from tariff adjustments - Electricity - Portugal, by nature and year of establishment, as well as presents the amounts of tariff deficit that have been sold during the period ended 31 March 2021:

Thousand Euros	Deficit	Tariff adj.	Sales	Total
Year:
2018	4,374	-	-	4,374
2019	1,191	8,758	-	9,949
2020	85	45,664	-	45,749
2021	547,048	119,054	-	666,102
	552,698	173,476	-	726,174

The caption Amounts receivable relating to CMEC is detailed as follows:

Thousand Euros	Non-current	Current
Initial CMEC	333,058	30,486
Final adjustement	155,580	61,803
Revisibility 2014 - 2017 *	-	101,192
	488,638	193,481

* The revisibility calculation for 2016 to 2017 is still waiting the official approval.

The caption Amounts receivable from concessions - IFRIC 12 in the amount of 1,640,427 thousand Euros (31 December 2020: 1,662,318 thousand Euros) relates to the financial asset to be received by the EDP Group regarding the electricity distribution concessions in Portugal and Brazil, resulting from the application of the mixed model, and the asset related to electricity transmission concessions in Brazil. The variation of the period includes: (i) the effect of the depreciation of Brazilian Real against Euro in the amount of 34,233 thousand Euros and (ii) transfers from Contract assets receivable from concessions in the amount of 360 thousand Euros.

Contract assets receivable from energy sales contracts - Current include contract assets relating to energy delivered and not yet invoiced, amounts receivable from REN regarding the CMEC Revisibility of 2016 and 2017 which are awaiting approval, and accruals from UNGE's energy management business. The impairment losses on Trade receivables includes impairment losses related to Contract assets receivable from energy sales contracts.

The caption Contract assets receivable from concessions - IFRIC 12 refers to the investment in assets under construction assigned to concessions. The variation of the period includes (i) the effect of the depreciation of Brazilian Real against Euro in the amount of 39,297 thousand Euros; (ii) the investment of the period in the amount of 128,444 thousand Euros and (iii) the transfer of assets assigned to concessions which began operation to intangible assets, in the amount of 72,316 thousand Euros (see note 16), and to Amounts receivable from concessions - IFRIC 12, in the amount of 360 thousand Euros.

22. Other Debtors and Other Assets

Other debtors and other assets are as follows:

	Group		Company
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Debtors and other assets - Non-Current

Assets measured at amortised cost:
Loans to subsidiaries	-	-	2,734,263	2,739,230
Loans to related parties	142,128	7,630	90	90
Guarantees rendered to third parties	98,371	96,311	-	-
Other financial assets at amortised cost (i)	18,773	23,864	112,035	113,609

Assets measured at fair value through profit or loss:
Derivative financial instruments (see note 35)	329,771	333,600	366,066	350,400
Contingent price	114,077	113,880	-	-
Other assets:
Excess of the pension fund financing (see note 28)	61,332	29,610	93	93
Other debtors and sundry operations	423,732	415,893	-	-
	1,188,184	1,020,788	3,212,547	3,203,422

Debtors and other assets - Current

Assets measured at amortised cost:
Loans to subsidiaries	-	-	30,656	18,186
Dividends attributed by subsidiaries	-	-	-	110,000
Loans to related parties	63,193	415,120	-	-
Receivables from the State and concessors	2,212	5,402	-	-
Guarantees rendered to third parties	135,255	72,150	43,592	47,102
Subsidiary companies	-	-	149,871	103,602
Other financial assets at amortised cost (i)	21,960	22,818	8,741	56,038

Assets measured at fair value through profit or loss:
Derivative financial instruments (see note 35)	330,320	271,828	578,539	421,666
Other financial investments measured at fair value	23,474	24,157	-	-
Contingent price	11,359	12,159	7,159	7,159

Other assets:
Other debtors and sundry operations	31,613	27,119	89,653	89,654
	619,386	850,753	908,211	853,407
	1,807,570	1,871,541	4,120,758	4,056,829

Loans to subsidiaries - Non-Current and Current, for the Company, mainly includes 809,785 thousand Euros (31 December 2020: 807,346 thousand Euros) of loans granted to EDP - Gestão da Produção de Energia, S.A. and 1,505,637 thousand Euros (31 December 2020: 1,503,685 thousand Euros) of loans granted to E-Redes – Distribuição de Eletricidade, S.A. (see note 37).

For the Loans to subsidiaries, EDP S.A. performs an analysis to evaluate impairment based on the general approach. The company uses several inputs on making its assessment of the credit risk related to these assets, such as the analysis of the historical possible delays and/or impairment losses indications, rating companies (when applicable) and market and macroeconomic data that may change the probability of default and the expectation of delays in the receivable amounts. According to the analysis performed, as per 31 March 2021 there are no expected credit losses accounted for related to loans with subsidiaries.

The variation of the caption Loans to related parties - Non Current, on a consolidated basis, is mainly due to new loans granted to OW FS Offshore, S.A. in the amount of 132,011 thousand Euros. The variation of the caption Loans to related parties - Current, on a consolidated basis, is mainly due to the receipt of loans granted to OW FS Offshore, S.A. in the amount of 354,785 thousand Euros.

(i) Other financial assets at amortised cost

On a consolidated basis, this caption mainly includes securities issued by Tagus - Sociedade de Titularização de Crédito, S.A. in the context of the transmission of the right to receive tariff adjustments (deviations and deficits) from the National Electric System for credit securitisation companies, acquired by SU Eletricidade, S.A. The detail of the balances arising from these operations is as follows:

Thousand Euros	Issue date	Class R Notes	Liquidity Notes	Senior Notes	Total Mar 2021
Overcost from special regime production 2017	Dec 2017	482	258	6,895	7,635
Overcost from special regime production 2018	Jun 2018	373	723	15,727	16,823
Overcost from special regime production 2019	Jun 2019	504	467	15,237	16,208
		1,359	1,448	37,859	40,666

On a company basis, this caption includes the bonds issued by EDP Finance B.V. reacquired on market by EDP S.A.

In the first quarter of 2021, EDP Finance B.V. repaid, at maturity, 600 million Euros of securities issued, of which EDP S.A. had already reacquired 46,783 thousand Euros.

The detail of these bonds is as follows:

Issuer	Maturity date	Currency	Interest rate	Nominal value in Currency '000	Acquired in Currency '000	Fair Value '000
EDP Finance B.V.	23 Dec 2022	EUR	Fixed rate (i)	93,357	53,357	56,254

(i) This issue corresponds to private placements.

The caption Other debtors and sundry operations - Non Current includes the financial consideration paid in advance in 2009 for the exploitation of the hydro power plants of Fridão and other amounts invested in such hydro power plant (see note 4).

23. Tax Assets

Current tax assets are as follows:

	Group		Company
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Non-Current:
Special taxes Brazil	221,036	251,770	-	-

Current:
Income tax	187,614	125,503	127,351	44,241
Value added tax (VAT)	237,811	191,587	10,014	6,196
Special taxes Brazil	82,765	90,783	-	-
Other taxes	6,598	6,429	876	877
	514,788	414,302	138,241	51,314
	735,824	666,072	138,241	51,314

24. Cash and Cash Equivalents

Cash and cash equivalents are as follows:

	Group		Company
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Cash	223	254	46	39

Bank deposits
Current deposits	892,040	1,461,444	394,014	1,030,863
Term deposits	478,392	1,452,451	-	150,000
Specific demand deposits in relation to institutional partnerships	17,578	34,313	-	-
	1,388,010	2,948,208	394,014	1,180,863
Operations pending cash settlement
Current deposits	-	-	65,000	118,000

Other operations
Group Financial System (see note 37)	-	-	1,002,304	873,729
	1,388,233	2,948,462	1,461,364	2,172,631

Held for sale operations:
Cash and cash equivalents reclassified as held for sale (see note 34)	-8,766	5,840	-	-
	1,379,467	2,954,302	1,461,364	2,172,631

Specific demand deposits in relation to institutional partnerships corresponds to funds required to be held in escrow sufficient to pay the remaining construction related costs of projects in institutional equity partnerships (see note 30), under the Group accounting policy.

As at 31 March 2021, on a company basis, the caption Operations pending cash settlement represents commercial paper issued by EDP, S.A., which is booked as financial debt at the issuance trade date, under the Group accounting policy. This caption of 65,000 thousand Euros (31 March 2020: 118,000 thousand Euros) refers to commercial paper issued on 30 March 2021, acquired by EDP Finance B.V., which settlement date occurred on 1 April 2021.

25. Reserves and retained earnings

This caption is as follows:

	Group		Company
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Legal reserve	739,024	739,024	739,024	739,024
Fair value reserve (cash flow hedge)	19,497	-6,066	135,649	84,893
Tax effect of fair value reserve (cash flow hedge)	-2,895	1,698	-30,560	-19,140
Fair value reserve of assets measured at fair value through other
comprehensive income	14,837	14,659	-	-
Tax effect of the fair value reserve of assets measured at fair value through
other comprehensive income	-2,813	-2,771	-	-
Currency translation reserve - Exchange differences arising on consolidation	-603,077	-699,299	-	-
Currency translation reserve - Net investment hedge	-452,252	-291,829	-	-
Currency translation reserve - Net investment hedge - Cost of hedging	-46,816	-62,367	-	-
Treasury stock reserve (EDP, S.A.)	54,025	54,025	54,025	54,025
Other reserves and retained earnings	4,776,141	3,926,711	2,806,133	1,927,982
	4,495,671	3,673,785	3,704,271	2,786,784

Fair value reserve (financial assets at fair value through other comprehensive income)

The changes in this consolidated caption for the period are as follows:

Group
FV reserve	Thousand Euros
14,659	Balance as at 31 December 2020
730	Positive changes in fair value
-556	Negative changes in fair value
4	Changes in perimeter
14,837	Balance as at 31 March 2021

Changes in fair value reserve attributable to the EDP Group during the period ended 31 March 2021 are as follows:

Thousand Euros	Increases	Decreases
Mercer and Dunas Funds (carteira da Energia RE) (see note 19)	730	-
SU Eletricidade, S.A. tariff deficit (see note 21)	-	-243
Other (see note 19)	-	-313
	730	-556

Currency translation reserve - Exchange differences arising on consolidation

Exchange differences arising on consolidation corresponds to the amounts resulting from changes in the value of net assets of subsidiaries, joint ventures and associated companies resulting from changes in exchange rates. The exchange rates used in the preparation of the financial statements are as follows:

		Exchange rates
		Mar 2021		Dez 2020		Dez 2019
Currency		Close	Average	Close	Average	Close	Average
US Dollar	USD	1.173	1.205	1.227	1.142	1.096	1.103
Brazilian Real	BRL	6.741	6.599	6.374	5.889	5.700	4.911
Macao Pataca	MOP	9.389	9.627	9.800	9.124	8.749	8.828
Canadian Dollar	CAD	1.478	1.526	1.563	1.530	1.562	1.482
Polish Zloty	PLN	4.660	4.547	4.615	4.444	4.552	4.325
Romanian Leu	RON	4.925	4.879	4.869	4.837	4.825	4.797
Pound Sterling	GBP	0.852	0.874	0.899	0.890	0.886	0.862
South African Rand	ZAR	17.348	18.030	18.022	18.754	19.610	16.930
Mexican Peso	MXN	23.986	24.512	24.359	24.514	25.712	22.056
Colombian peso	COP	4,381.527	4,284.176	4,191.065	4,214.657	4,453.406	3,900.351
Chinese Yuan	CNY	7.681	7.808	8.023	7.874	7.778	7.698
Corean Won	WON	1,324.190	1,343.212	1,336.000	1,345.385	1,341.030	1,315.974
Japanese Yen	JPY	129.910	127.806	126.490	121.846	118.900	120.126

Currency translation reserve - Net investment hedge and Cost of hedging

The changes in these captions, net of income tax, for the period are as follows:

	Net
	investment	Cost of
Thousand Euros	hedge	hedging
Balance as at 31 December 2020	-291,829	-62,367
Changes in fair value	-160,423	15,551
Balance as at 31 March 2021	-452,252	-46,816

Dividends

On 14 April 2021, the Shareholders General Meeting of EDP, S.A. approved the dividends distribution to shareholders of the net profit for the year 2020 in the amount of 753,479 thousand Euros, corresponding to a dividend of 0.19 Euros per share (including the treasury stock dividend). Considering the resolution date, the corresponding accounting record will be made during the second quarter of 2021.

26. Non-Controlling Interests

This caption is as follows:

	Group
Thousand Euros	Mar 2021	Dec 2020
Non-controlling interests in income statement	79,068	360,501
Non-controlling interests in equity and reserves	3,427,196	3,135,253
	3,506,264	3,495,754

The movement by subgroup of the non-controlling interests item is analysed as follows:

Thousand Euros	EDP Renováveis Group	EDP Brasil Group	Other	Total
Balance as at 31 December 2020	2,518,461	943,167	34,126	3,495,754
Results	36,228	37,258	5,582	79,068
Dividends	-2,561	-1,117	-	-3,678
Currency Exchange differences	34,645	-48,383	9	-13,729
Captial Increses/Decreases	-8,360	-47,251	-	-55,611
Perimeter variations and Others	-488	4,013	935	4,460
Balance as at 31 December 2021	2,577,925	887,687	40,652	3,506,264

27. Financial Debt

This caption is as follows:

	Group			Company
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Debt and borrowings - Non-current
Bank loans:
- EDP Finance B.V. **	-8,216	-8,935	-	-
- EDP Brasil Group	234,634	200,782	-	-
- EDP España Group	-	15,067	-	-
- EDP Renováveis Group	715,883	572,457	-	-
- EDP Produção	916	-	-	-
	943,217	779,371	-	-
Non-convertible bond loans:
- EDP S.A.	743,048	742,779	6,193,047	6,192,779
- EDP Finance B.V.	7,568,959	8,475,687	-	-
- EDP Brasil Group	805,446	613,880	-	-
- EDP España Group	1,052,146	1,052,210	-	-
	10,169,599	10,884,556	6,193,047	6,192,779
Hybrid bonds:
- EDP S.A.	2,480,586	1,737,918	2,480,586	1,737,918
	2,480,586	1,737,918	2,480,586	1,737,918
Commercial paper:
- EDP S.A.	213,220	203,732	213,220	203,732
- EDP Finance B.V.	191,898	183,359	-	-
- EDP Brasil Group	59,339	62,760	-	-
	464,457	449,851	213,220	203,732

Other loans	30,885	26,741	-	-
	14,088,744	13,878,437	8,886,853	8,134,429

Accrued interest	15,116	13,026	-	-
Other liabilities:
- Fair value of the issued debt hedged risk	122,386	132,477	-	-
Total Debt and Borrowings	14,226,246	14,023,940	8,886,853	8,134,429

Collateral Deposits - Non-current *	-23,680	-22,848	-	-
	14,202,566	14,001,092	8,886,853	8,134,429

* Deposits constituted as collateral for financial guarantee.

** Deferred discount of origination fees on celebrated Revolving Credit Facilities (RCF), which are currently not used.

	Group		Company
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Debt and borrowings - Current
Bank loans:
- EDP Brasil Group	153,258	188,032	-	-
- EDP Renováveis Group	126,981	77,173	-	-
- Other	2,160	3,305	-	-
	282,399	268,510	-	-
Non-convertible bond loans:
- EDP S.A.	-	-	250,000	1,500,000
- EDP Finance B.V.	998,539	1,164,278	-	-
- EDP Brasil Group	148,043	181,219	-	-
	1,146,582	1,345,497	250,000	1,500,000
Commercial paper:
- EDP S.A	-	-	330,000	586,000
- EDP Finance B.V.	-	155,000	-	-
- EDP Brasil Group	40,054	123,951	-	-
- EDP España Group	82,000	100,000	-	-
	122,054	378,951	330,000	586,000

Other loans
Group Financial System (see note 37)	-	-	814,003	1,188,704
- Other	1,617	1,797	-	-
	1,617	1,797	814,003	1,188,704

Accrued interest	167,239	243,214	114,757	74,439
Other liabilities:
- Fair value of the issued debt hedged risk	18,170	24,854	-	-
Total Debt and Borrowings	1,738,061	2,262,823	1,508,760	3,349,143

Collateral Deposits - Current *	-9,342	-9,221	-	-
	1,728,719	2,253,602	1,508,760	3,349,143

* Deposits constituted as collateral for financial guarantee.

Non-current Commercial Paper refers to a Commercial Paper program with firm underwriting commitment for a period of over one year, in the amount of 475,000 thousand American Dollars and 400,000 thousand Brazilian Real.

The nominal value of outstanding Bond loans placed with external counterparties issued during 2021, as at 31 March 2021, is as follows:

Issuer	Issue date	Interest rate	Type of hedge	Conditions / Redemption	Nominal Value in Million	Thousand Euros
					Currency	Group	Company
Hybrids by EDP S.A.
EDP S.A. (i)	Jan-21	Fixed Rate EUR 1.875% (ii)	n.a.	Aug-81	750 EUR	750,000	750,000
						750,000	750,000
		Issued by the EDP Energias do Brasil Group in the Brazilian domestic market
EDP São Paulo	Feb-21	IPCA + 3.91%	n.a.	Jan-26	720 BRL	106,747	-
Enerpeixe	Mar-21	CDI + 1.75%	n.a.	Mar-26	275 BRL	40,796	-
EDP Espírito Santo	Feb-21	IPCA + 3.26%	n.a.	Jul-25	524 BRL	77,716	-
						225,259	-
						975,259	750,000

(i) There is a call option exercisable at par by EDP at May 2026 and August 2026 and subsequently, on each interest payment date;

(ii) Fixed rate in the first 5.25 years, subsequently updated every 5 years.

Some of the loans contracted by the EDP Group, mainly debt issued under the EMTN, include some usual clauses in this type of operations, namely, "change-of-control", "negative pledge", "pari-passu" and "cross-default" clauses, each one only applicable under a restricted set of circumstances.

The Group has project finance loans with the usual guarantees for such loans, namely pledges or promissory pledges over shares, bank accounts and assets relating to the projects. As at 31 March 2021, these loans amounted to 669,973 thousand Euros (31 December 2020: 595,088 thousand Euros). At 31 March 2021, the Group confirms the fulfillment of all the covenants of the Project Finance Portfolio under the Facilities Agreements. Additionally, there are 18,034 thousand Euros of other loans that are guaranteed by EDPR.

EDP Group has several credit facilities it uses for liquidity management. EDP Group has short-term credit facilities of 331 million Euros, indexed to Euribor for the agreed period of use with spread conditions agreed in advance, all with a firm underwriting commitment, which as at 31 March 2021 were totally available. Regarding medium-term credit facilities with a firm underwriting commitment, EDP Group has two Revolving Credit Facilities, namely (i) 3,300 million Euros, of which 3,295 million Euros mature in 2024 while the remaining amount matures in 2023; and (ii) 2,240 million Euros, of which 2,095 million Euros mature in 2025 while the remaining amount matures in 2023, both of them totally available as at 31 March 2021.

As at 31 March 2021, future debt and interest payments and origination fees, by type of loan and currency, are as follows:

						Following
Thousand Euros	Mar 2022	Dec 2022	Dec 2023	Dec 2024	Dec 2025	years	Total
Bank loans:
Euro	57,428	39,193	38,959	35,779	21,615	106,773	299,747
Brazilian Real	120,337	40,860	91,891	36,697	30,388	148,672	468,845
US Dollar	106,095	8,841	12,084	14,257	15,267	246,678	403,222
Other	26,681	12,771	16,251	19,742	9,863	18,793	104,101
	310,541	101,665	159,185	106,475	77,133	520,916	1,275,915
Bond loans:
Euro	1,076,827	92,870	1,859,820	1,418,443	1,375,400	3,227,930	9,051,290
Brazilian Real	165,165	71,945	76,157	115,342	268,949	299,329	996,887
US Dollar	8,834	-	-	852,878	-	724,947	1,586,659
	1,250,826	164,815	1,935,977	2,386,663	1,644,349	4,252,206	11,634,836
Hybrid Bonds:
Euro	52,530	-	-	-	-	2,500,000	2,552,530
	52,530	-	-	-	-	2,500,000	2,552,530
Commercial paper:
Euro	82,000	-	-	-	-	-	82,000
Brazilian Real	40,054	14,835	-	44,504	-	-	99,393
US Dollar	1,729	-	95,949	-	309,168	-	406,846
	123,783	14,835	95,949	44,504	309,168	-	588,239
Other loans:
Euro	2,186	995	1,202	1,011	1,031	13,113	19,538
Brazilian Real	600	-	-	-	-	8,941	9,541
US Dollar	-	-	-	-	-	4,593	4,593
	2,786	995	1,202	1,011	1,031	26,647	33,672

Origination Fees:	-2,405	-4,563	-35,780	-8,508	-6,117	-63,512	-120,885
	1,738,061	277,747	2,156,533	2,530,145	2,025,564	7,236,257	15,964,307

In accordance with the Group's accounting policies, the financial liabilities whose risks are being hedged by derivative financial instruments and that comply with hedge accounting requirements of IFRS 9, are accounted at fair value. The financial liabilities are booked at amortised cost.

28. Employee Benefits

Employee benefits are as follows:

	Non-Current		Current
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Provisions for pension liabilities	470,519	507,883	121,655	121,725
Provisions for medical liabilities and other benefits	605,759	630,354	64,987	82,342
	1,076,278	1,138,237	186,642	204,067

The movement in Provisions for employee benefits liabilities for EDP Group is as follows:

		Mar 2021
Thousand Euros	Pensions	Medical and Other
Balance at the beginning of the period	629,608	712,696
Charge for the period	2,110	4,943
Actuarial (gains)/losses	-29,138	-18,493
Charge-off	-36,835	-25,657
Surplus/(Deficit) pension funding (see note 22)	31,722	-
Transfers, reclassifications and exchange differences	-5,293	-2,743
Balance at the end of the period	592,174	670,746

The components of the consolidated net cost of the plans for employe beneficts recognised during the period are as follows:

	Mar 2021
Thousand Euros	Pensions	Medical and Other
Current service cost	1,308	2,100
Operational component (see note 10)	1,308	2,100
Net interest on the net pensions plan liability	802	2,843
Financial component (see note 12)	802	2,843
	2,110	4,943

With reference to 31 March 2021, the net movement of the Provision for pension liabilities period corresponds to a decrease of 37,434 thousands of Euros, of which 30,286 thousands of Euros correspond to the negative net movement seen in Portugal, 4,919 thousands of Euros correspond to the negative net movement seen in Spain and 2,229 thousands of Euros correspond to the negative net movement seen in Brazil. The movement in the period in Portugal is mainly related to the payment of benefits (negative 34,410 thousand Euros), the recognition of actuarial gains (negative 29,131 thousand Euros) resulting from the valuation of the assets of the portfolio of Pension Plan Fund and the increase of surplus (31,722 thousand Euros).

In turn, the net movement in the Provision period for liabilities for medical care and other benefits corresponds to a decrease of 41,950 thousands of Euros, of which 16,711 thousands of Euros correspond to the negative net movement seen in Portugal, 20,269 thousands of Euros correspond to the negative net movement seen in Spain and 4,970 thousands of Euros correspond to the negative net movement in Brazil. The negative net movement in Portugal is mainly related the recognition of actuarial gains (negative 14,802 thousand Euros) resulting from the valuation of the assets of the Funds portfolio and the payments made in the period (negative 3,612 thousand Euros). The negative net movement in Spain is mainly due to payments made in the period.

On 31 March 2021, the determination of the cost of current services and net interest was based on the cost estimate for the period actuarially determined on 31 December 2020.

29. Provisions

Provisions are as follows:

	Non-Current		Current
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Provision for legal and labour matters and other contingencies	94,682	97,320	2,716	2,996
Provision for customer guarantees under current operation	-	2,417	17,139	19,274
Provision for dismantling and decommissioning	542,436	549,378	16,792	16,792
Provision for other liabilities and charges	351,082	343,750	203,483	221,092
	988,200	992,865	240,130	260,154

With reference to 31 March 2021, the movement by nature of the Provisions item at the EDP Group level is presented as follows:

Thousand Euros	Legal, labour and other matters	Guarantees to customers in the context of current activity	Dismantling and Decommission ing	Other risks and charges	Total
Balance as at 31 December 2020	100,316	21,691	566,170	564,842	1,253,019
Perimeter variations (see note 6)	-	-	970	-	970
Charge for the period	3,341	-	-	10,563	13,904
Reversals	-1,088	-	-	-249	-1,337
Charge-off for the period	-2,670	-	-4,033	-10,094	-16,797
Unwinding (see note 12)	3,235	-	1,237	1,101	5,573
Increase of the responsibility (see note 14)	-	-	2,077	-	2,077
Onerous contracts	-	-4,560	-	-	-4,560
Innovative Features Charge-off	-	-	-	-20,974	-20,974
Overcompensation revisability CMEC	-	-	-	-18,540	-18,540
CMEC	-	-	-	6,115	6,115
"Lesividad"	-	-	-	2,005	2,005
Exchange differences and other	-5,736	8	3,581	19,796	17,649
Reclassification to Liabilities Held for Sale (see note 34)	-	-	-10,774	-	-10,774
Balance as at 31 March 2021	97,398	17,139	559,228	554,565	1,228,330

EDP and its subsidiaries' Board of Directors, based on the information provided by its legal advisors and on the analysis of pending law suits, have recognised provisions to cover the losses estimated as probable, related with litigations in progress.

In their ordinary course of business, EDP Group subsidiaries are involved in several litigations and contingencies (of possible risk) of administrative, civil, tax, labour and other natures. These legal, arbitration or other actions, involve customers, suppliers, employees and administrative. In EDP Group and its legal advisors' opinion, the risk of a loss in these actions is not probable, and the outcome will not affect on a material way its consolidated financial position.

The processes whose losses were considered as possible, do not require the recognition of provisions and are periodically reassessed. As at 31 March 2021, there were no significant changes in the losses considered as possible as of 31 December 2020, with the following exception:

i) Within E-Redes – Distribuição de Eletricidade, S.A. there is a contingency established by Gás Natural Comercializador, S.A. (GNC), for the undue payment of tariffs for access to networks charged by E-Redes – Distribuição de Eletricidade, S.A. and surplus consumption by Repsol Polimeros, S.A. The situation is related with the attribution of a proper consumption producer status to Repsol Polimeros, S.A. in June 2014, being this energy invoiced only from October 2015 onwards. Regarding the year 2015, GNC was reimbursed for the over paid amounts, therefore the claim is only on payments about the second half of 2014, in the amount of 5,724 thousand Euros. As at 31 December 2020, the value of this contingency is divided between a probable risk of loss in the amount of 2,308 thousand Euros and the remain value with a classification of risk as possible. According to the expert report issued in the meantime, it came to recognize that, with regard to the Network Access Tariffs ("TAR"), despite the fact that at the time of the facts, the self-consumption statute has not yet been approved and that, therefore, E-Redes – Distribuição de Eletricidade, S.A. situation was not clear, the amount of TAR charged by the company would have been higher than the amount actually due by GNC. With regard to the amount claimed by GNC as "excess consumption", the consolidated expert report concluded that "the reliquidation taking into account the adjustments between 13 June 2014 and 31 December 2014, according to the hourly values presented by GNC for that period, would generate a return to GNC whose approximate value estimates that it could be in the range between 3,192 thousand Euros and 3,271 thousand Euros ". Consequently, and with reference to 31 December 2020, the probable contingency amount of 2,308 thousand Euros (referring to the value of TAR) was updated to 5,579 thousand Euros; the difference refers to the higher amount indicated in the expert report as the amount allegedly owed by GNC to excess consumption securities. The provision amount was also updated accordingly, with the remainder remaining as possible, 144 thousand Euros. In October 2020, the experts presented the clarifications requested by the Court, and the judgment hearing was scheduled for January 2021. The parties entered into negotiations in order to reach agreement, which led to the suspension of the proceedings and consequently the non-operation of such a hearing. On 10 March 2021, E-Redes submitted an agreement proposal to GNC, which was accepted, pending the approval of the agreement by the Court.

ii) On 3 September 2018, the Portuguese Competition Authority (AdC) notified EDP Produção with Statement of Objections, under which EDP Produção is accused of abuse of a dominant position in the secondary regulation band market (a part of the ancillary services market). AdC claims that EDP Produção has deliberately limited the participation of CMEC plants in the secondary regulation market between 2009 and 2014, benefitting its non-CMEC power plants. The alleged benefit, in detriment of consumers, would be twofold: receiving higher compensation under CMEC annual adjustment regime; profiting from higher market prices in said market. AdC has estimated that the alleged practice of EDP Produção has generated damages to the national electricity system and to consumers of around 140 million Euros. AdC pointed out that the adoption of a Statement of Objections did not determine the result of the investigation, which began in September 2016 and is still in course. On 28 November 2018, EDP Produção presented to AdC its facts about the accusation. On 18 September 2019, AdC has notified EDP Produção for an alleged infraction to competition rules. This contingency was estimated with a value of 48 million Euros and it graduation was assessed as possible. On 30 October 2019, EDP Produção presented an appeal against this decision to the TCRS. On 20 May 2020, EDP Produção was notified of a decision by the TCRS, which, among other things, admitted its Judicial Challenge Appeal, establishing a purely return effect and determining the payment of the fine imposed within 20 days. In this regard, EDP Produção submitted requests, invoking supervening facts for the demonstration of considerable damage, and arguing defects in the decision that determined the attribution of a merely devolution effect to the Judicial Challenge Appeal. On 16 July 2020, EDP was notified of an order which implied the existence of substantial losses if the fine was paid in advance. Thus, the payment order was therefore suspended. On 18 November 2020, EDP Produção was notified of a decision by the Lisbon Court of Appeal, granting the appeal presented by the Public Prosecutor and, consequently, revoking the order of TCRS of 16 July 2020. EDP Produção appealed of this judgment to the Constitutional Court on 30 November 2020. On 22 February 2021, EDP Produção was notified of the decision of the Constitutional Court in the sense of not knowing the object of the appeal, on 15 April 2021, EDP Produção submitted a complaint to the Constitutional Court conference to contest the Summary Decision of non-admission rendered and to fight for the admission of its constitutionality appeal, pending a decision on this complaint. On 4 and 5 January 2021, the TCRS issued an order to definitively set out the evidence issues to be discussed at the hearing and to designate the trial dates (between March and May 2021), which have since been cleared, pending the appointment of new dates for this purpose.

iii) On 9 September 2020, Portsines - Terminal Multipurpose de Sines, SA (Portsines) filed an arbitration lawsuit against EDP Produção, to obtain its condemnation in the payment of the amounts relating to port fees, allegedly provided for in the Contract for Provision of Services celebrated between both. In summary, Portsines intends to obtain the condemnation of EDP Produção to the payment of the so-called fixed rate provided for in the Contract, even concerning periods in which there is no unloading of coal destined for the Sines Thermoelectric Power Station, claiming in particular that the referred fee remunerates the investment made by you in said infrastructure and makes its actual use by EDP Produção irrelevant. On 2 November 2020, a decision was handed down that ordered EDP Produção to pay (i) the amount invoiced and overdue of 590 thousand Euros related to the fixed rate of the first quarter of 2020; (ii) the amount invoiced and falling due of 590 thousand Euros related to the fixed rate of the second quarter of 2020; (iii) conditionally, until the end of the Concession Contract or until the end of the Contract, whichever occurs first, the amount of 599 thousand Euros for the third and fourth quarters of 2020 and each of the four quarters of the year 2021 and first two quarters of the year 2022; and (iv) conditionally, alternatively, full payment of the current fixed fee amount of 3,074 thousand Euros, divided quarterly, during the period between the date of the eventual termination of the Contract between Tejo Energia and Portsines and the end of the Contract Concession or Contract between EDP Produção and Portsines, whichever comes first; (v) interest due and falling due at the applicable rate. On 2 December 2020, EDP Produção filed an Appeal against the aforementioned Arbitral Award, to the Lisbon Court of Appeal, within which a request for annulment of the final decision was also deducted. The amount of the contingency amounts to 5,896 thousand Euros, with the risk being classified as possible. In January 2021, executions were initiated by Portsines to comply with the decision handed down by the Arbitral Tribunal, under which EDP Produção provided a guarantee. However, in April the parties entered into an agreement that provides for the termination of the contract between both parties and that ended the pending cases, that is to say, the Appeal filed by EDP Produção at the Lisbon Court of Appeal, as well as the executions brought by Portsines against the company.

Finally, even if EDP Group classifies its risk as remote, it is important to identify the following litigation:

i) On 27 October 2009 and 5 January 2010, the EDP Group received two tax settlements regarding 2005 and 2006 taxable income for the EDP tax Group, which included an adjustment of 591 million Euros regarding its subsidiary, EDP Internacional SGPS, related to the tax treatment considered by the EDP Group in relation to a capital loss generated with the liquidation of a subsidiary, whose main assets consisted of investments in operating subsidiaries in Brazil, namely EDP Espírito Santo and Enersul. As at 31 March 2021, the amount of this tax contingency amounts to 301 million euros (31 December 2020: 299 million euros).

Considering the analysis made, the technical advice received and a favourable binding opinion obtained from the tax authorities in relation to the nature of the transaction occurred in the year of the assessment, the EDP Group considers as remote the risk associated with this matter. Under this analysis, the capital loss is tax deductible for income tax purposes as established in article 75 no. 2 of the Corporate Income Tax Code ("Código do IRC") based on the wording of the law in force at that date (existing article 81).

Given the above, and considering that the EDP Group's tax procedures comply with applicable Portuguese tax legislation at the date of the events, the Group is currently using all available legal means to contest these additional settlements. Thus, following the implied rejection of the hierarchical appeal, EDP presented a judicial claim, on 6 June 2012. In November 2018, EDP Group was notified with a decision in favour. The Treasuary filed an appeal on that decision.

30. Institutional Partnerships in North America

The caption Institutional partnerships in North America is as follows:

	Group
Thousand Euros	Mar 2021	Dec 2020
Deferred income related to benefits provided	753,372	799,094
Liabilities arising from institutional partnerships	903,310	1,134,448
	1,656,682	1,933,542

The movements in Institutional partnerships in North America are as follows:

	Group
Thousand Euros	Mar 2021	Dec 2020
Balance at the beginning of the period	1,933,542	2,289,784
Proceeds received from institutional investors	-	307,860
Cash paid for deferred transaction costs	-97	-3,310
Cash paid to institutional investors	-9,529	-55,822
Other Income (see note 8)	-44,691	-201,783
Unwinding (see note 12)	18,914	94,718
Exchange differences	80,189	-181,398
Loss of control of companies with Institutional Partnerships	-	-320,944
Transfer to Liabilities held for sale (see note 34)	-324,375	-
Perimeter variations (see note 6)	752	-
Other	1,977	4,437
Balance at the end of the period	1,656,682	1,933,542

Under these partnerships, EDP Group provides operating guarantees to institutional investors in wind and solar projects, which are typical of this type of structure. As at 31 March 2021, the liabilities associated with these guarantees are not expected to exceed the amounts already recognized under the caption Liabilities arising from institutional partnerships.

31. Trade payables and other liabilities from commercial activities

At Group level, Trade payables and other liabilities from commercial activities are as follows:

	Non-Current		Current
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Contract liabilities:
Energy sales contracts - North America	6,095	6 286	-	-
Deferred income - CMEC	160,264	142,482	66,414	66,053
Amounts received from the Fund for systemic sustainability of the energy sector	-	-	106,030	12,405
	166,359	148,768	172,444	78,458
Other liabilities:
Investment government grants	526,571	515,409	-	-
Amounts payable for tariff adjustments - Electricity - Portugal	84,454	75,093	48,687	41,479
Amounts payable for tariff adjustments - Electricity - Brazil	257,626	277,807	78,950	98,345
Amounts payable - securitisations	-	-	102,865	139,192
Amounts payable - CMEC	-	-	215,134	222,245
Amounts payable for concessions	198,649	195,471	-	-
Property, plant and equipment suppliers	2,573	2,874	687,965	1,202,896
Suppliers	-	-	592,886	799,158
Accrued costs related with commercial activities	-	-	695,136	731,954
Holiday pay, bonus and other charges with employees	-	-	173,144	168,272
CO2 emission Licenses	-	-	195,124	166,692
Other creditors and sundry operations	242,413	219,584	330,470	303,522
	1,312,286	1,286,238	3,120,361	3,873,755
	1,478,645	1,435,006	3,292,805	3,952,213

At Company level, Trade payables and other liabilities from commercial activities are as follows:

	Current
Thousand Euros	Mar 2021	Dec 2020
Other liabilities:
Suppliers	384,384	390,819
Accrued costs related with commercial activities	225,949	234,644
Property, plant and equipment suppliers	261	1,379
Holiday pay, bonus and other charges with employees	36,045	33,133
Other creditors and sundry operations	42,258	2,584
	688,897	662,559

The caption Deferred income - CMEC is detailed as follows:

Thousand Euros	Non-current	Current
Initial CMEC	81,309	35,648
Final adjustment	78,955	30,766
	160,264	66,414

Investment government grants are amortised through the recognition of a revenue in the income statement over the useful life of the related assets, which amounts to 5,336 thousand Euros as at 31 March 2021.

The movement for the period in Amounts payable for tariff adjustments - Electricity - Portugal (Non-current and Current) is as follows:

Thousand Euros	Non-Current	Current
Balance at the beginning of the period	75,093	41,479
Payment through the electricity tariff	-	-11,776
Tariff adjustment of the period (see note 7)	28,497	-
Transfer to/from tariff adjustment payable (see note 21)	-	-152
Transfer from Non-Current to Current	-19,136	19,136
Balance at the end of the period	84,454	48,687

The captions Amounts payable and Amounts Receivable for tariff adjustments - Electricity - Brazil, refer to tariff adjustments recognised in EDP São Paulo - Distribuição de Energia S.A. and EDP Espírito Santo - Distribuição de Energia S.A.

	Non-current		Current
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Amounts payable for tariff adjustments - Electricity - Brazil	257,626	277,807	78,950	98,345
Amounts receivable from tariff adjustments - Electricity - Brazil (see note 21)	-27,879	-49,986	-47,854	-35,600
	229,747	227,821	31,096	62,745

The movement for the period in Amounts payable and Amounts Receivable for tariff adjustments - Electricity - Portugal (Non-current and Current) is as follows:

Thousand Euros	Mar 2021
Balance at the beginning of the period	290,566
Tariff adjustment of the period (see note 7)	8,295
Payment/Receipt through the electricity tariff	-22,987
Interest expense/income (see note 12)	509
Effect of exchange differences of the Brazilian Real against the Euro	-15,540
Balance at the end of the period	260,843

The movement includes the recognition of 6,256 thousand Euros (42,172 thousand Brazilian Real) of the refund and the 815 thousand Euros (5,494 thousand Brazilian Real) of unwinding over the amount resulting from the non-inclusion, in 2019, of the amounts of VAT borne in the basis of calculation of PIS and COFINS (1,756,597 thousand Brazilian Real as at 31 December 2019, of which 107,386 thousand Brazilian Reais were returned in 2020 and 2021 through the electricity tariff and unwinding in 2020 and 2021 of 44,158 thousand Brazilian Real).

The caption Amounts payable for concessions includes the concession rights for the operation of the hydric domain of Alqueva and Pedrógão transferred by EDIA in the amount of 133,903 thousand Euros (31 December 2020: 131,577 thousand Euros) and the financial compensation for the use of the public domain related to concession agreements of Investco, S.A. and Enerpeixe, S.A. in Brazil in the amount of 64,746 thousand Euros (31 December 2020: 63,894 thousand Euros).

The caption Property, plant and equipment suppliers - Current refers mainly to the amounts due related with the construction of windfarms and solar parks in North America in the amount of 361,192 thousand Euros (31 December 2020: 789,771 thousand Euros) and in Europe in the amount of 150,483 thousand Euros (31 December 2020: 218,810 thousand Euros).

The caption CO2 emission licenses includes the CO2 consumptions during 2021 in Portugal and Spain, in the amount of 108,950 thousand Euros and 85,109 thousand Euros, respectively (31 December 2020: 103,469 thousand Euros and 63,223 thousand Euros). The variation that occurred includes the consumption for the year. The CO2 emission licences related with the consumptions in a given year are delivered to the regulatory authorities until April of the following year.

The caption Other creditors and sundry operations - Non-current includes the amount of 51,056 thousand Euros related with the reinsurance activity (31 December 2020: 55,155 thousand Euros). The caption Other creditors and sundry operations - Current includes the amount of 14,317 thousand Euros related to tariff adjustment payable (31 December 2020: 14,317 thousand Euros).

32. Other Liabilities and Other Payables

Other liabilities and other payables are as follows:

	Group		Company
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Other liabilities and other payables - Non-Current

Liabilities measured at amortised cost:
Loans from non-controlling interests	409,586	409,978	-	-
Lease Liabilities	920,306	955,036	148,084	149,588

Liabilities measured at fair value through profit or loss:
Derivative financial instruments (see note 35)	276,302	227,228	350,792	263,309
Amounts payable and contingent prices for acquisitions/sales	140,901	143,567	84,393	84,393

Other Liabilities:
Other creditors and sundry operations	4,671	3,639	-	-
	1,751,766	1,739,448	583,269	497,290

Other liabilities and other payables - Current

Liabilities measured at amortised cost:
Loans from non-controlling interests	184,006	180,446	-	-
Dividends attributed to related companies	53,155	55,561	-	-
Group companies	-	-	4,826	3,873
Lease Liabilities	97,289	100,642	12,477	12,384

Liabilities measured at fair value through profit or loss:
Derivative financial instruments (see note 35)	277,287	169,654	398,438	346,612
Amounts payable and contingent prices for acquisitions/sales	93,469	67,039	25,349	25,349

Other Liabilities:
Other creditors and sundry operations	18,072	16,775	114,678	35,119
	723,278	590,117	555,768	423,337
	2,475,044	2,329,565	1,139,037	920,627

The caption Loans from non-controlling interests Current and Non-Current mainly includes:

Thousand Euros		Mar 2021
ACE Portugal (CTG Group)	Fixed rate of 3.75%	29,557
	Fixed rate of a range between
ACE Poland (CTG Group)	1.33% and 7.23%	89,114
ACE Italy (CTG Group)	Fixed rate of 4.5%	50,856
CITIC CWEI Renewables (CTG Group)	Fixed rate of 5.5%	26,864
Sonatrach	Fixed rate of 5.6%	77,391
	Fixed rate of a range between
Macquarie Super Core Infrastructure Fund SD Holdings S.À.R.L. ("MSCIF")	0.50% and 2.73%	307,626
		581,408

The variation of the caption Amounts payable and contingent prices for acquisitions/sales is mainly due to the recognition of contingent prices in the amount of 30,709 thousand Euros as a result of the acquisition of distributed solar generation portfolio in North America in March 2021 and the recognition of the costs actually incurred in the construction of the windfarm projects as foreseen in the context of the sale of North America projects in 2020 (decrease of 7,693 thousand Euros).

The variation of the caption Lease Liabilities Non-Current and Current includes: i) 10,725 thousand Euros corresponding to lease liabilities starting after 1 January 2021 (see note 15); ii) negative 24,858 thousand Euros corresponding to payments rents made; iii) 9,859 thousand Euros corresponding to the financial update of the liability (see note 12); iv) the reclassification of 52,249 thousand Euros regarding lease liabilities of windfarms in North America classified as non current assets held for sale (see note 34) and; v) exchange differences amounting to 18,352 thousand Euros.

As at 31 March 2021, the nominal value of the lease liabilities is detailed as follows: (i) less than 5 years: 463,384 thousand Euros; (ii) from 5 to 10 years: 321,067 thousand Euros; (iii) from 10 to 15 years: 282,597 thousand Euros; and (iv) more than 15 years: 519,848 thousand Euros.

33. Tax Liabilities

Tax liabilities are as follows:

	Group		Company
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Non Current
Special tax Brazil	111,606	122,743	-	-

Current
Income tax	64,152	47,859	15,044	15,044
Withholding tax	27,861	35,730	1,087	1,256
Value Added Tax (VAT)	131,169	141,399	1,638	3,777
Special taxes Brazil	59,976	71,911	-	-
CESE	51,286	-	-	-
Other taxes	142,030	101,735	1,129	1,145
	476,474	398,634	18,898	21,222
	588,080	521,377	18,898	21,222

34. Non-Current Assets and Liabilities Held for Sale

This caption is as follows:

	Group
Thousand Euros	Mar 2021	Dec 2020
Assets held for sale
Electricity generation assets - Offshore wind	15,161	12,306
Electricity supply (B2C) assets - Spain	-	9,942
Portsines - Terminal Multipurpose de Sines, S.A. (see note 18)	6,263	-
Electricity generation assets - Onshore wind	610,015	-
	631,439	22,248
Liabilities held for sale
Electricity generation liabilities - Offshore wind	-	111
Electricity generation assets - Onshore wind	414,791	-
	414,791	111
	216,648	22,137

The assets and liabilities associated with Moray West Holdings Limited remain classified as non-current assets and liabilities held for sale under the sale plan that the EDPR Group has entered into in the past.

In the second quarter of 2020, the EDP Group agreed to sell a portfolio of two CCGTs power plants (Castejón I & III), with 843 MW of installed capacity located in Navarra, North of Spain and the B2C energy supply business in Spain, which includes 1.2 million clients in free market, and the 50% stake in our joint venture with CIDE for electricity supply in this segment (CHC Energia). This transaction was partially completed in December 2020. Furthermore, following CIDE's exercise of its preferential right for the acquisition of EDP's 50% shareholding in CHC Energia, EDP and CIDE have reached an agreement for the acquisition by CIDE which was completed in the first quarter of 2021 (see note 6).

On 1 April 2021, EDP Real Estate Global Solutions - Imobiliária e Gestão Participações S.A. agreed to sell the entire stake it held in Portsines - Terminal Multipurpose de Sines, S.A. to the other shareholder of the Company, Empresa de Trânsito e Estiva, S.A. At 31 March 2021, this asset was presented as a non-current asset held for sale.

On 8 April 2021, EDPR Group signed a sale and purchase agreement with a funds managed by Greencoat Capital to sell an 55% equity shareholding in a onshore wind portfolio located in the United States with 405 MW. Assets and liabilities associated with this transaction that met all the conditions for its sale were presented in non-current assets and liabilities held for sale.

As at 31 March 2021 the following reclassifications were made to held for sale:

	Renewables
Thousand Euros		Onshore wind Offshore wind	Total
Assets
Property, plant and equipment (see note 14)	-541,127	-	-541,127
Right‐of‐use assets (see note 15)	-52,048	-	-52,048
Other assets	-8,074	-2,855	-10,929
Cash and cash equivalents (see note 24)	-8,766	-	-8,766
Assets Held for Sale	610,015	2,855	612,870
	-	-	-
Liabilities
Provisions (see note 29)	-10,774	-	-10,774
Institutional partnerships in North America (see note 30)	-324,375	-	-324,375
Other liabilities	-79,642	111	-79,531
Liabilities Held for Sale	414,791	-111	414,680
	-	-	-

These reclassifications were made only for financial statement presentation purposes, without impact on the measurement of these assets and liabilities, as it is expected that the fair value less costs to sell is higher than its book value, in accordance with IFRS 5.

35. Derivative Financial Instruments

In accordance with IFRS 9, the Group classifies derivative financial instruments as fair value hedge of a recognised asset or liability (Fair value hedge), as cash flow hedge of recognised liabilities and highly probable future transactions (Cash flow hedge), as net investment hedge in foreign operations (Net investment hedge), or as held for trading, if or when they are not eligible for hedge accounting.

The fair value of the derivative financial instruments in EDP Group is as follows:

	Mar 2021		Dec 2020
Thousand Euros	Assets	Liabilities	Assets	Liabilities
Net Investment hedge
Cross-currency interest rate swaps	53,548	-38,115	83,532	-23,822
Currency forwards	443	-22,534	5,544	-38
Fair value hedge
Interest rate swaps	59,470	-	70,515	-
Cross-currency interest rate swaps	4,358	-	27,320	-3,974
Cash flow hedge
Interest rate swaps	377	-13,688	2,287	-24,852
Swaps related to gas commodity	178,321	-230,826	153,253	-156,716
Electricity swaps	37,577	-71,720	24,219	-34,235
Currency forwards for commodities	79,069	-7,512	54,046	-22,770
Trading
Interest rate swaps	1,416	-4,131	-	-6,054
Cross-currency interest rate swaps	4,686	-3,772	1,089	-432
Commodity swaps and forwards	115,271	-107,990	146,877	-97,339
Currency forwards	12,960	-735	3,006	-4,528
CO2 forwards	1,812	-12,308	-	-3,843
Currency forwards associated to commodities	106,153	-40,258	29,592	-18,279
Commodity options	4,630	-	4,148	-
	660,091	-553,589	605,428	-396,882

The management of financial risk of EDP, S.A. and other EDP Group companies, is carried out centrally by EDP, S.A. (note 5). On this basis, EDP, S.A. negotiates derivative financial instruments with external entities to hedge its own individual business risks, as well as for other companies of the Group, performing for these entities as an intermediate in their contracting.

The fair value of the derivative financial instruments at Company level is as follows:

		Mar 2021		Dec 2020
Thousand Euros	Assets	Liabilities	Assets	Liabilities
Cash flow hedge
Swaps related to gas commodity	8,573	-116,831	27,101	-80,913
Electricity swaps	55,675	-4,335	57,387	-2,434
Currency forwards for commodities	57,615	-3,329	39,768	-7,766
Trading
Interest rate swaps	45,270	-49,013	69,493	-73,850
Cross-currency interest rate swaps	109,887	-81,016	96,906	-88,240
Commodity swaps	586,475	-444,238	417,217	-305,455
Currency forwards	19,098	-12,388	6,847	-6,700
Commodity forwards	13,092	-20,355	3,341	-7,535
Currency forwards associated to commodities	39,829	-13,161	46,111	-32,960
Commodity options	9,091	-4,564	7,895	-4,068
	944,605	-749,230	772,066	-609,921

The fair value of derivative financial instruments is booked in Other debtors and other assets (see note 22) and Other liabilities and other payables (see note 32), according to its nature.

As at 31 March 2021, the following market inputs were considered for the fair value calculation:

Fair value indexed to the following market inputs
Interest rates: Euribor 3M, Euribor 6M, Libor 3M, Libor 6M, Daily CDI, Wibor 3M, Wibor 6M, CAD Libor 3M,
Robor 3M and Colombia Overnight Interbank; and exchange rates: EUR/GBP, EUR/BRL, EUR/PLN, EUR/CAD,

Interest rates: Euribor 3M, Euribor 6M, Wibor 6M, US Libor 3M and CAD Libor 3M.
Exchange rates: EUR/USD, EUR/PLN, EUR/BRL, EUR/GBP, EUR/HUF, BRL/USD, BRL/CNY, COP/USD and

Market quotes of commodities: Brent, NBP Natural Gas, Electricity, Henry Hub, TTF, Coal, CO2 and JKM.

36. Commitments

Operating guarantees granted by EDP Group, not included in the consolidated statement of financial position nor in the Notes, are as follows:

	Group		Company
Thousand Euros	Mar 2021	Dec 2020	Mar 2021	Dec 2020
Operating guarantees
EDP S.A.	475,586	440,724	475,586	440,724
EDP España Group	94,996	87,851	-	-
EDP Brasil Group	145,400	159,325	-	-
EDP Renováveis Group	1,601,659	1,444,576	-	-
	2,317,641	2,132,476	475,586	440,724

In addition to the guarantees identified above, EDP Group provides financial and operating guarantees related to liabilities assumed by joint ventures and associates in the amount of 482,700 thousand Euros and 231,947 thousand Euros, respectively (31 December 2020: 492,364 thousand Euros and 309,806 thousand Euros).

The remaining financial and operating guarantees granted by EDP Group have underlying liabilities that are already reflected in its consolidated statement of financial position and/or disclosed in the Notes.

In the Group, the commitments relating to future cash outflows not reflected in the measurement of the lease liabilities and purchase obligations are disclosed, by maturity, as follows:

	Mar 2021
		Capital outstanding by maturity
		Less	From	From	More
		than 1	1 to 3	3 to 5	than 5
Thousand Euros	Total	year	years	years	years
Future cash outflows not reflected in the measurement of the lease liabilities	72,856	9,884	11,943	6,437	44,592
Purchase obligations	23,183,547	4,748,037	4,019,556	2,508,166	11,907,788
	23,256,403	4,757,921	4,031,499	2,514,603	11,952,380

At Company level, the commitments relating to future cash outflows not reflected in the measurement of the lease liabilities and purchase obligations are disclosed, by maturity, as follows:

			Mar 2021
			Capital outstanding by maturity
	Less From From				More
		than 1	1 to 3	3 to 5	than 5
Thousand Euros	Total	year	years	years	years
Future cash outflows not reflected in the measurement of the
lease liabilities	296	296	-	-	-
Purchase obligations	5,486,059	331,944	658,774	638,690	3,856,651
	5,486,355	332,240	658,774	638,690	3,856,651

37. Related Parties

Balances and transactions with subsidiaries, joint ventures and associates

In their ordinary course of business, EDP Group companies establish commercial transactions and operations with other Group companies, whose terms reflect current market conditions.

The credits and debits over subsidiaries, joint ventures and associates, at Company level, are as follows:

Credits held

		31 March 2021
Thousand Euros	Intra-Group Financial Mov.	Loans and Interests receivable	Other Credits	Total
EDP Comercial, S.A.	-	43,950	228,488	272,438
E-Redes – Distribuição de Eletricidade, S.A	16,527	1,505,637	16,748	1,538,912
EDP Finance B.V.	-	109,687	6,936	116,623
EDP Produção, S.A.	-	809,785	203,029	1,012,814
Hidrocantábrico Distribucion Eléctrica, S.A.U.	-	-	30,789	30,789
EDP Renováveis, S.A.	-	-	56,976	56,976
EDP Servicios Financieros España, S.A.U.	972,403	-	8,481	980,884
SU Electricidade, S.A.	13,374	301,476	6,050	320,900
EDP Renewables Europe, S.L.U.	-	-	39,452	39,452
EDP Clientes, S.A.	-	-	151,408	151,408
Other	-	104,161	122,288	226,449
	1,002,304	2,874,696	870,645	4,747,645

The amount of 109,687 thousand Euros refers to one private placement by EDP S.A. of one bond issued by EDP Finance B.V.

Debits held

		31 March 2021
Thousand Euros	Intra-Group Financial Mov.	Loans and Interests payable	Other Debits	Total
E-Redes – Distribuição de Eletricidade, S.A	-	-	8,217	8,217
EDP Finance B.V.	-	6,084,174	45,274	6,129,448
EDP Renováveis Servicios Financieros, S.A.	-	-	38,648	38,648
EDP Produção, S.A.	672,132	-	488,512	1,160,644
EDP Renováveis, S.A.	-	-	28,298	28,298
SU Electricidade, S.A.	-	-	72,881	72,881
EDP España, S.A.U.	-	-	30,209	30,209
EDP Clientes, S.A.	-	-	105,991	105,991
EDP GÁS.COM - Comércio de Gás Natural, S.A.	40,793	-	15,082	55,875
Other	101,078	-	63,199	164,277
	814,003	6,084,174	896,311	7,794,488

At 31 March 2021, the amount of 6,084,174 thousand Euros includes five intragroup bonds issued by EDP Finance BV and acquired by EDP S.A., with fixed and variable rate and a term to maturity up to 10 years.

Expenses and income related to Subsidiaries, Joint Ventures and Associates, at Company level, are as follows:

Expenses

			31 March 2021
Thousand Euros	Interest on Intra-Group Financial Mov.		Interest on Loans Obtained	Other Losses	Total
EDP Finance B.V.		-	23,672	8,388	32,060
EDP Produção, S.A.		-	-	388,541	388,541
EDP España, S.A.U.		-	-	36,552	36,552
EDP Clientes, S.A.		-	-	174,808	174,808
Other		6	-	81,692	81,698
		6	23,672	689,981	713,659

Income

		31 March 2021
Thousand Euros	Interest on Intra-Group Financial Mov.	Interest on Loans Granted	Other Gains	Total
EDP Comercial, S.A.	-	137	278,096	278,233
E-Redes – Distribuição de Eletricidade, S.A	7	4,362	11,582	15,951
EDP España, S.A.U.	-	-	3,518	3,518
EDP Produção, S.A.	-	3,293	31,934	35,227
EDP Clientes S.A.	-	-	2,440	2,440
EDP Finance B.V.	-	1,695	17,481	19,176
EDP Renewables Europe, S.L.U.	-	-	980	980
EDP Renováveis, S.A.	-	-	80,648	80,648
Other	-	1,626	41,552	43,178
	7	11,113	468,231	479,351

Other gains include income from equity investments of 850 thousand Euros (see note 12).

Assets, liabilities and transactions with related companies, for the Group, are as follows:

Assets and Liabilities

		31 March 2021
Thousand Euros	Assets	Liabilities	Net Value
Joint Ventures
OW Offshore, S.L.	399,566	130	399,436
SCNET - Sino-Portuguese Centre	-	1,080	-1,080
HC Tudela Cogeneración, S.L.	1,031	1,113	-82
Empresa de Energia São Manoel, S.A.	4,068	739	3,329
Other	3,167	386	2,781
	407,832	3,448	404,384

Associates
Parque Eólico Sierra del Madero, S.A.	8,125	-	8,125
Parque Eólico Belmonte, S.A.	1,231	-	1,231
Centrais Elétricas de Santa Catarina, S.A. - Celesc	5,223	564	4,659
Solar Works! B.V.	1,027	-	1,027
Other	1,856	95	1,761
	17,462	659	16,803
	425,294	4,107	421,187

Transactions

	31 March 2021
	Operating	Financial	Operating	Financial
Thousand Euros	Income	Income	Expenses	Expenses
Joint Ventures
Companhia Energética do JARI - CEJA	48	-	567	-
HC Tudela Cogeneración, S.L.	1,184	18	876	14
Empresa de Energia São Manoel, S.A.	280	-	1,851	-
Other	473	-	807	-
	1,985	18	4,101	14

Associates
Eos Pax IIa, S.L.	180	-	-	-
Eólica de São Julião, Lda	631	-	-	-
Parque Eólico Belmonte, S.A.	126	8	-	-
Other	101	70	7	-
	1,038	78	7	-
	3,023	96	4,108	14

During 2021, EDP Group contributed with 1,625 thousand Euros of donations to Fundação EDP (see note 11).

38. Fair Value of Financial Assets and Liabilities

The fair value of financial assets and liabilities is as follows:

		Mar 2021			Dec 2020
Thousand Euros	Carrying amount	Fair value	Difference	Carrying amount	Fair value	Difference
Assets
Equity instruments at fair value	186,133	186,133	-	184,748	184,748	-
Investment property	21,209	21,209	-	21,378	21,378	-
Debtors/other assets from commercial activities	6,548,045	6,548,045	-	6,292,623	6,292,623	-
Other debtors and other assets	1,147,479	1,147,479	-	1,266,113	1,266,113	-
Derivative financial instruments	660,091	660,091	-	605,428	605,428	-
Collateral deposits/financial debt	33,022	33,022	-	32,069	32,069	-
Cash and cash equivalents	1,379,467	1,379,467	-	2,954,302	2,954,302	-
	9,975,446	9,975,446	-	11,356,661	11,356,661	-
Liabilities
Financial debt	15,964,307	16,678,585	714,278	16,286,763	17,100,948	814,185
Suppliers and accruals	1,280,851	1,280,851	-	2,002,054	2,002,054	-
Institutional partnerships	1,656,682	1,656,682	-	1,933,542	1,933,542	-
Trade payables and other liabilities from
commercial activities	2,964,028	2,964,028	-	2,869,756	2,869,756	-
Other liabilities and other payables	1,921,455	1,921,455	-	1,932,683	1,932,683	-
Derivative financial instruments	553,589	553,589	-	396,882	396,882	-
	24,340,912	25,055,190	714,278	25,421,680	26,235,865	814,185

According to IFRS 13 requirements, EDP Group established the way it obtains the fair value of its financial assets and liabilities. The levels used are defined as follows:

		Mar 2021			Dec 2020
Thousand Euros	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Financial assets
Equity instruments at fair value through
other comprehensive income (see note 19)	-	90,551	27,098	-	89,821	27,290
profit or loss (see note 19)	-	-	68,484	-	-	67,637
Tariff deficit at fair value through
other comprehensive income (see note 21)	-	671,751	-	-	423,324	-
Amounts receivable from concessions-IFRIC 12
at fair value through profit or loss (see note 21)	-	548,312	-	-	547,103	-
Investment property	-	21,209	-	-	21,378	-
Derivative financial instruments (see note 35)	-	660,091	-	-	605,428	-
	-	1,991,914	95,582	-	1,687,054	94,927
Financial liabilities
Derivative financial instruments (see note 35)	-	553,589	-	-	396,882	-
	-	553,589	-	-	396,882	-

39. Relevant or Subsequent Events

Asset Rotation deal of a 405 MW wind portfolio in the US

On 8 April 2021, EDP annouced that signed a Sale and Purchase Agreement to sell a 55% equity stake in a wind portfolio comprising two winds farms in operation with 405 MW total capacity. The wind farms are located in the state of Illinois in the United States of America and started operations in 2019 and 2020.

Payment of dividends - Year 2020

On 14 April 2021, EDP in accordance with article 249º of the Portuguese Securities Code nº 2 paragraph b) and article 7, no. 3 of the Portuguese Securities Market Commission's Regulation no. 5/2008, EDP - Energias de Portugal, S.A. hereby informs that the General Shareholders Meeting, approved the proposal of the Executive Board of Directors for the allocation of profits regarding the financial year ended 31 December 2020, which provides for the payment of a gross dividend of 0.19 euros per share.

Completion of EDPR capital increase of 1,5 billion Euros

On 16 April 2021, EDP informed that has successfully completed the capital increase of 1,500,250,000 Euros through the issuance of 88,250,000 new shares at a subscription price of 17.00 Euros per share.

Following the Capital Increase, EDP holds the same number of 720,191,372 EDPR shares, which represent 74.98% of EDPR's share capital on a fully diluted basis.

Wind project with 40MW in Spain

On 26 April 2021, EDP has secured a 15-year power purchase agreement with MSD to sell the clean energy produced by a 40 MW wind farm in Albacete, Spain. The project is expected to commence operations in 2023.

Bank of America Corporation with qualified shareholding in EDP of 2.017%

On 28 April 2021, Bank of America Corporation notified EDP it had reached a qualified shareholding correspondent to 2.017% of EDP's share capital and respective voting rights.

BlackRock informs on its qualified shareholding in EDP

On 30 April 2021, BlackRock, Inc. notified EDP that its subsidiary BlackRock Investment Management (UK) Limited has reduced its qualified shareholding to 1.96% of EDP's share capital and respective voting rights, having afterwards on 7 May 2021 notified EDP that its subsidiary has reached a qualified shareholding correspondent to 2.02% of EDP's share capital and respective voting rights.

Moody's revises outlook to positive

On 11 May 2021, Moody's Investors Service revised the outlook on EDP – Energias de Portugal, S.A. and it's finance subsidiary EDP Finance B.V. from Stable to Positive, while affirming the 'Baa3' senior unsecured ratings.

The change in outlook reflects the recent deleveraging achieved by EDP, the improvement of the company's business risk profile, on continuing investment in renewables and networks and reduced exposure to merchant activities, as well as Moody's expectation that credit metrics could strengthen further as the company executes its strategy.

Fitch upgrades EDP to 'BBB' with stable outlook

On 12 May 2021, Fitch Ratings upgraded EDP – Energias de Portugal, S.A. and EDP Finance B.V. long-term Issuer Default Ratings and senior unsecured ratings to 'BBB' with stable oulook.

This upgrade reflects a sustainable improvement in leverage metrics and Fitch's positive view on EDP's updated business plan for 2021-2025, which balances growth acceleration in low risk activities and geographies and credit-metric protection, as well as expectations of a stronger business profile fully consistent with the energy transition.

40. EDP Branch in Spain

The aim of EDP - Energias de Portugal - Sociedade Anónima, Sucursal en España is to manage and coordinate the energy interests of subsidiaries depending from EDP Group in Spain, organised through managing and monitoring structures, in order to ensure the maximum synergy and value creation in the operations and activities in Spain, also assuming itself as an organizational platform to lead the Iberian integration of shared and support services (back and middle offices). On this basis, interests in EDP Servicios Financieros (España), S.A.U. and EDP España, S.A.U. are directly allocated to the assets of EDP Sucursal, as well as the majority interest in EDP Renováveis, S.A.

The Spanish branch of EDP has offices in Madrid and Oviedo. From a formal and legal point of view, the representation of the Spanish branch of EDP before third parties is ensured through the permanent representatives, which are members of the Executive Board of Directors of EDP, mandated for that purpose.

The structure of direction, coordination, management and representation of the Spanish branch of EDP is composed by an Executive Committee, a Management Committee and by direct representation on iberian scope EDP Management Committees.

The Executive Committee is composed essentially by five permanent representatives, a Corporate General Director (Group Controller for the activities in Spain) and by first line directors of the business units in Spain, which constitute the main direction and coordination body of the Branch, being responsible for the coordination of the activities of the permanent representatives and of the Management Committee. The Management Committee is chaired by the Corporate General Director and is composed by the natural extension of the Departments of the Corporate Centre of EDP in Spain, namely the Department of M&A ("Direcção de Projectos e Novos Negócios"), Department of Legal Affairs ("Direcção de Assessoria Jurídica"), Department of Internal Audit ("Direcção de Auditoria"), Department of Administration and Finance ("Direcção de Administração e Finanças"), Department of Human Resources ("Direcção de Recursos Humanos"), Department of EDP Spain Foundation ("Direcção da Fundação EDP Espanha"), Department of Regulation ("Direcção de Regulação"), IT Department ("Direcção de Sistemas de Informação") and Department of Environment, Sustainability, Innovation and Quality ("Direcção de Ambiente, Sustentabilidade, Inovação e Qualidade") ensuring in a homogeneous way the functions of these departments transversally to the Spanish territory, being provided with 194 human resources as at 31 March 2021, including 112 in its own payroll. Lastly, the Spanish branch of EDP has direct representation on iberian scope EDP Management Committees, particularly the Energy Planning, Price and Volume, Markets, Distribution Networks, Commercial and Production Committees.

The Statement of Financial Position of the Branch is as follows:

	EDP Branch
Thousand Euros	Mar 2021	Dec 2020
Investments in subsidiaries:
- EDP Renováveis, S.A.	4,154,431	4,154,431
- EDP España, S.A.U.	2,105,002	2,105,002
- EDP Servicios Financieros (España), S.A.U.	482,695	482,695
- EDP International Investments and Services, S.L.	988,849	988,849
Deferred tax assets	52,411	53,020
Other debtors and others assets	9,050	9,358
Total Non-Current Assets	7,792,438	7,793,355

Other debtors and others assets	86,009	176,365
Tax receivable	47,506	39,515
Cash and cash equivalents	972,568	854,129
Total Current Assets	1,106,083	1,070,009
Total Assets	8,898,521	8,863,364

Equity	8,811,133	8,809,855

Employee benefits	1,604	1,592
Other liabilities and other payables	463	685
Total Non-Current Liabilities	2,067	2,277

Employee benefits	891	891
Other liabilities and other payables	82,479	46,251
Tax payable	1,951	4,090
Total Current Liabilities	85,321	51,232
Total Liabilities	87,388	53,509
Total Equity and Liabilities	8,898,521	8,863,364

41. Operating Segments

In accordance with IFRS 8, an operating segment is a Group component:

(i) that engages in business activities from which it may earn revenues and incur expenses;
(ii) whose operating results are reviewed regularly by the Group's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and
(iii) for which discrete financial information is available.

The Group develops a set of regulated and liberalised activities in the energy sector, with special emphasis in generation, distribution and supply of electricity.

The Executive Board of Directors regularly reviews segmental reports, using Operating Profit to assess and release each business operating performance, as well as to allocate resources.

The new Board of Directors, elected in January, considered that the last resort suppliers should be monitored in the Client Solutions & Management segment along with the other suppliers. Therefore the comparative data for this segment and the Networks segment (where it was allocated in 2020) have been amended accordingly.

The management of financial activities of all EDP Group entities (except Brazil) is undertaken centrally by the Financial Department at holding level, in accordance with policies approved by the Executive Board of Directors. As a result of this management, all financial operations and financial results are disclosed only at Group level.

The Renewables segment corresponds to the activity of generation of electricity from renewable sources, mainly hydro, wind and solar. This segment includes, but not limited to, the following companies:

EDP Gestão da Produção de Energia, S.A. (hydro activity);
EDP España, S.A.U. (hydro activity);
EDP Renováveis, S.A. and all subsidiaries of the EDPR Group;
Enerpeixe, S.A.;
Investco, S.A.;
Lajeado Energia, S.A.

The Networks segment corresponds to the activities of electricity distribution and transmission. This segment includes, but not limited to, the following companies:

E-Redes Distribuição de Eletricidade, S.A.;
Electra de Llobregat Energía, S.L.;
Hidrocantábrico Distribucion Eléctrica, S.A.U.;
Viesgo Distribución Eléctrica, S.L.;
Barras Eléctricas Galaico-Asturianas, S.A.;
EDP Espírito Santo Distribuição de Energia S.A.;
EDP São Paulo Distribuição de Energia S.A.;
EDP Transmissão, S.A.;
EDP Transmissão Aliança SC, S.A.;
EDP Transmissão SP-MG, S.A.

The Client Solutions & Energy Management segment includes the following activities: generation of electricity from non-renewable sources, mainly coal and gas; electricity and gas supply, including last resort suppliers and related energy solutions services to clients; and energy management businesses responsible for management of purchases and sales of energy in iberian and brazilian markets, and also for the related hedging transactions. This segment includes, but not limited to, the following companies:

EDP Gestão da Produção de Energia, S.A. (thermal activity);
EDP España, S.A.U. (thermal and intermediation activities);
UNGE Unidade de Negócio de Gestão de Energia Ibérica (EDP, S.A.);
Porto do Pecém Geração de Energia, S.A.;
EDP Comercial Comercialização de Energia, S.A.;
EDP Comercialização e Serviços de Energia, Ltda;
SU Eletricidade, S.A.;
EDP Gás Serviço Universal, S.A.

Segment Definition

The amounts reported in each operating segment result from the aggregation of the subsidiaries and business units defined in each segment perimeter and the elimination of transactions between companies of the same segment.

The statement of financial position captions of each subsidiary and business unit, as well as income statement captions for each operating segment, are determined based on the amounts booked directly in the companies that compose the segment, including the elimination of balances between companies of the same segment, and excluding the allocation in the segments of the adjustments between segments.

In each business segment, Assets include the Property, Plant and Equipment, Right-of-use assets, Intangible Assets and Goodwill. The remaining assets are presented in the "Reconciliation of information between Operating Segments and Financial Statements".

Under IFRS 8, the EDP Group discloses as Operating investment, additions in non-current assets, except for financial instruments, deferred tax assets and post-employment benefit assets. Therefore, in each business segment, the Operating Investment caption includes increases in Property, Plant and Equipment; Intangible Assets; and Amounts receivable from concessions - IFRIC 12 under the financial asset model, excluding CO2 licenses and Green certificates, net of increases in Government grants, customers contributions for investment and sales of properties in the period. Goodwill is disclosed in note 17.

In consolidated financial statements, Joint Ventures and associated companies are accounted under the equity method, in accordance with the Group accounting policy disclose in note 2. These equity accounted investees are disclosed by business segment under IFRS 8 and presented in the business segment correspondent to its operating activity.

EDP Group Operating Segments Information as at 31 March 2021

			Client Solutions &
	Renewables	Networks	Energy	Total Segments
Thousand Euros			Management
Revenues from energy sales and services and other	691,150	852,576	2,332,185	3,875,911
Revenues inter-segments	372,987	443,898	-25,165	791,720
Revenues from third parties	318,163	408,678	2,357,350	3,084,191

Gross Profit	614,007	497,437	195,864	1,307,308

Other income	62,393	16,787	3,918	83,098
Supplies and services	-85,918	-76,220	-54,970	-217,108
Personnel costs and employee benefits	-49,288	-49,598	-31,998	-130,884
Other costs	-79,515	-78,605	-25,434	-183,554
Impairment losses on trade receivables and debtors	216	-234	-1,566	-1,584
Joint ventures and associates	-16,408	99	20,979	4,670

Gross Operating Profit	445,487	309,666	106,793	861,946

Provisions	-151	-2,348	-9,868	-12,367
Amortisation and impairment	-186,132	-114,379	-47,228	-347,739

Operating Profit	259,204	192,939	49,697	501,840

Assets	20,910,748	5,970,041	2,352,650	29,233,439

Financial assets - Investments in joint ventures and associates	1,014,648	190	12,859	1,027,697

Operating Investment	384,875	148,929	27,800	561,604

Reconciliation of information between Operating Segments and Financial Statements for 31 March 2021

Thousand Euros 3,875,911 Total Revenues from energy sales and services and other of Reported Segments 57,230 Revenues from energy sales and services and others from Other Segments Adjustments and Inter-segments eliminations -845,098 3,088,043 Total Revenues from energy sales and services and other of EDP Group Total Gross Profit of Reported Segments 1,307,308 57,933 Gross Profit from Other Segments -57,280 Adjustments and Inter-segments eliminations 1,307,961 Total Gross Profit of EDP Group Total Gross Operating Profit of Reported Segments 861,946 3,301 Gross Operating Profit from Other Segments -919 Adjustments and Inter-segments eliminations 864,328 Total Gross Operating Profit of EDP Group 501,840 Total Operating Profit of Reported Segments -7,700 Operating Profit from Other Segments 1,654 Adjustments and Inter-segments eliminations Total Operating Profit of EDP Group 495,794 29,233,439 Total Assets of Reported Segments 12,650,801 Assets Not Allocated 2,230,061 Financial Assets Trade Receivables and Other Debtors 6,548,045 325,914 Inventories 1,718,003 Tax Assets Other Assets 1,828,778 640,030 Assets from Other Segments -64,237 Inter-segments assets eliminations Total Assets of EDP Group 42,460,033 Total Equity accounted Investments in joint ventures and associates of Reported Segments 1,027,697 Equity accounted Investments in joint ventures and associates from Other Segments 222,642 Total Equity accounted Investments in joint ventures and associates of EDP Group 1,250,339 Total Operating Investment of Reported Segments 561,604 Operating Investment from Other Segments 14,147 Total Operating Investment of EDP Group 575,750 Dismantling/discomission of PP&E 2,077 CO2 Emission Licenses and Green Certificates 9,151 Concession Rights - IFRIC 12 * -128,444 Other Investments 4,556

Total Fixed Assets additions of EDP Group (Notes 14 and 16) 463,090

			Adjustments and
	Total of Reported		Inter-segments
	Segments	Other Segments	eliminations*	Total of EDP Group
Other income	83,098	14,749	-4,457	93,390
Supplies and services	-217,108	-37,289	59,568	-194,829
Personnel costs and employee benefits	-130,884	-31,884	957	-161,811
Other costs	-183,554	-8,957	294	-192,217
Impairment losses on trade receivables and debtors	-1,584	0	-	-1,585
Equity method in joint ventures and associates	4,670	8,750	-	13,419

Provisions	-12,367	-40	-	-12,407
Amortisation and impairment	-347,739	-10,960	2,572	-356,127

* Mainly related with intragroup balances and transactions eliminations.

** See Note 21 - Debtors and Other Assets from Commercial Activities

EDP Group Operating Segments Information as at 31 March 2020 *

			Client Solutions &
	Renewables	Networks	Energy	Total Segments
Thousand Euros			Management
Revenues from energy sales and services and other	766,666	861,956	2,847,235	4,475,857
Revenues inter-segments	414,631	543,588	16,711	974,930
Revenues from third parties	352,035	318,368	2,830,524	3,500,927
Gross Profit	694,015	442,767	344,355	1,481,137
Other income	77,406	6,970	6,258	90,634
Supplies and services	-82,430	-77,229	-72,115	-231,774
Personnel costs and employee benefits	-50,206	-51,820	-36,236	-138,262
Other costs	-87,753	-80,352	-31,403	-199,508
Impairment losses on trade receivables and debtors	0	-6,085	-8,139	-14,224
Joint ventures and associates	-2,008	1,247	1,407	646

Gross Operating Profit	549,024	235,498	204,127	988,649
Provisions	-109	-15,880	60	-15,929
Amortisation and impairment	-187,901	-88,518	-77,815	-354,234
Operating Profit	361,014	131,100	126,372	618,486


Assets (31 December 2020)	20,501,380	5,977,238	2,384,400	28,863,018
Financial assets - Investments in joint ventures and associates Assets (31
December 2020)	716,417	91	10,871	727,379

Operating Investment (31 March 2020)	275,562	122,458	13,355	411,375

* Includes restatement originated by the change in monitoring the last resort suppliers

Reconciliation of information between Operating Segments and Financial Statements for 31 March 2020

Thousand Euros
Total Revenues from energy sales and services and others of Reported Segments	4,475,857
Revenues from energy sales and services and others from Other Segments	56,322
Adjustments and Inter-segments eliminations*	-1,030,217
Total Revenues from energy sales and services and others of EDP Group	3,501,962

Total Gross Profit of Reported Segments	1,481,137
Gross Profit from Other Segments	48,695
Adjustments and Inter-segments eliminations*	-55,007
Total Gross Profit of EDP Group	1,474,825

Total Gross Operating Profit of Reported Segments	988,649
Gross Operating Profit from Other Segments *	-16,301
Adjustments and Inter-segments eliminations*	7,227
Total Gross Operating Profit of EDP Group	979,575

Total Operating Profit of Reported Segments	618,486
Operating Profit from Other Segments	-25,004
Adjustments and Inter-segments eliminations*	3,507
Total Operating Profit of EDP Group	596,989
	28,863,018
Total Assets of Reported Segments (31 December 2020) Assets Not Allocated	13,508,470
Financial Assets	3,193,367
Trade Receivables and Other Debtors	6,292,623
Inventories	323,945
Tax Assets	1,805,615
Other Assets	1,892,920
Assets from Other Segments	630,695
Inter-segments assets eliminations*	-55,400
Total Assets of EDP Group (31 December 2020)	42,946,783


Total Equity accounted Investments in joint ventures and associates of Reported Segments (31 December 2020)	727,379
Equity accounted Investments in joint ventures and associates from Other Segments	212,983
Total Equity accounted Investments in joint ventures and associates of EDP Group (31 December 2020)	940,362


Total Operating Investment of Reported Segments (31 March 2020)	411,375
Operating Investment from Other Segments	13,690
Total Operating Investment of EDP Group (31 March 2020)	425,065
Discomission of Property, plant and equipment	1,757
CO2 Licenses and Green Certificates	8,224
Concession Rights - IFRIC 12	-100,597
Other Investments	419
Total Fixed Assets additions of EDP Group (31 March 2020)	334,868

	Total of Reported Segments	Other Segments	Adjustments and Inter-segments eliminations*	Total of EDP Group
Other income	90,634	11,537	-6,233	95,938
Supplies and services	-231,774	-36,399	67,162	-201,011
Personnel costs and employee benefits	-138,262	-28,130	1,361	-165,031
Other costs	-199,508	-10,062	-56	-209,625
Impairment losses on trade receivables and debtors	-14,224	-	-	-14,224
Joint ventures and associates	646	-1,943	-	-1,297

Provisions	-15,929	-	-	-15,929
Amortisation and impairment	-354,234	-8,703	-3,720	-366,657

* Mainly related with intragroup balances and transactions eliminations

42. Reconciliation of Changes in the responsibilities of Financing activities at 31 March 2021

				Group
		Financial debt and Derivative financial instruments (including Collateral Deposits)
Thousand Euros	Loans obtained (Note 27)	Collateral Deposits (Note 27)	Derivative financial instruments (Note 35)*	Institutional partnerships in North America (Note 30)	Lease Liabilities (Note 32)	Loans from non controlling interests (Note 32)
Balance as at 31 de December 2020	16,286,763	-32,069	-129,593	1,933,542	1,055,678	590,424
Cash flows:
Receipts relating to financial debt (including Collateral Deposits)	1,176,241	-	-	-	-	-
(Payments) relating to financial debt (including Collateral Deposits)	-1,573,081	-1,899	-	-	-	-
Interest and similar costs of financial debt including hedge derivatives	-175,473	-	36,366	-	-	-
Receipts/(payments) relating to loans from non-controlling interests	-	-	-	-	-	477
Interest and similar costs relating to loans from non-controlling interests	-	-	-	-	-	-1,730
Receipts/(payments) relating to derivative financial instruments	-	-	16,618	-	-	-
Receipts/(payments) from institutional partnerships	-	-	-	-9,626	-	-
Lease (payments)	-	-	-	-	-24,260	-
Perimeter variations	87 802	-	520	752	-	168
Exchange differences	82 954	946	403	80 189	18 352	- 887
Fair value changes	-17,702	-	16,823	-	-	-
Interests and accrued and deferred costs	96,803	-	4,580	1,977	-	5,140
Unwinding	-	-	-	18,914	9,859	-
ITC/PTC recognition	-	-	-	-44,691	-	-
New lease contracts/Increments in rent values	-	-	-	-	9,878	-
Reclassification to Liabilities held for sale	-	-	-	-324,375	-51,912	-
Balance as at 31 March 2021	15,964,307	-33,022	-54,283	1,656,682	1,017,595	593,592

* The Group considers as financing activities all derivative financial instruments excluding derivatives related with commodities.

			Company
		Financial debt and Derivative financial instruments
	Loans obtained	Derivative financial instruments	Lease Liabilities	Group companies
Thousand Euros	(Note 27)	(Note 35)*	(Note 32)	(Note 32)
Balance as at 31 December 2020	11,483,572	-4,456	161,972	3,873
Cash flows: Receipts relating to financial debt (including Collateral Deposits)	956,220	-	-	-
(Payments) relating to financial debt (including Collateral Deposits)	-1,712,220	-	-	-
Interest and similar costs of financial debt including hedge derivatives	-10,257	-4,887	-	-
Receipts/(payments) relating to loans from related parties	-374,701	-	-	-
Lease (payments)	-	-	-3,144	-
Exchange differences	9,486	-	-	-
Fair value changes	-	-27,046	-	-
Unwinding	-	-	1 534	-
Interests and accrued and deferred costs	43,513	4,551	-	953
New lease contracts/Increments in rent values	-	-	199	-
Balance as at 31 March 2021	10,395,613	-31,838	160,561	4,826

* The Group considers as financing activities all derivative financial instruments excluding derivatives related with commodities.

43. Explanation Added for Translation

These financial statements are a free translation of the financial statements originally issued in Portuguese in accordance with International Financial Reporting Standards as adopted by the European Union. In the event of discrepancies, the Portuguese language version prevails.

Changing tomorrow now.

THE EXECUTIVE BOARD OF DIRECTORS

Miguel Stilwell de Andrade (Chairman)

Miguel Nuno Simões Nunes Ferreira Setas

Rui Manuel Rodrigues Lopes Teixeira

Vera de Morais Pinto Pereira Carneiro

Ana Paula Garrido Pina Marques

Changing tomorrow now.

Under the terms of the legal and statutory requirements, specifically as set in the Articles of Association and internal terms of reference, the Audit Committee ("AUDC" or "Committee") presents this Report and Opinion based on its understanding of the activity and business performance and its conclusions following the analysis and supervision of the information and supporting documentation received from the Executive Board of Directors ("EDB") and the Heads of Corporate Services of the Company, the Audit Committees of the Subsidiaries and the Statutory Auditor ("SA" or "PwC") of EDP Group, with reference to the period ended as of March 31, 2021.
For this period, the Audit Committee met regularly with the Executive Board of Directors and the heads of the corporate departments of EDP, to monitor and supervise the company's financial matters and accounting practices, the internal procedures for internal auditing and internal control system over financial reporting, the matters related to the risk management system and the compliance function, in particular with:
i. The Executive Board of Directors, to monitor the interim financial information (financial statements IFRS, budget scorecard and results of the period), as well as other relevant information for the Committee.
ii. The corporate heads of the Consolidation and Financial Reporting Services, to supervise the fulfilment of the principles and accounting policies and the integrity of the process of preparation and disclosure of the financial and other relevant information, including the unusual or significant value transactions, subsequent events and the main changes in the consolidation perimeter;
iii. The corporate heads of the Internal Audit Services, to monitor and supervise the conclusions of the internal audit work, as well as the effectiveness of the issued and implemented recommendations;
iv. The corporate heads of the Compliance Services, to monitor and supervise the conclusions of the work carried out on the internal control system over financial reporting, as well as the status of the main specific compliance programs;
v. The corporate heads of the Risk Management Services, to monitor the governance and the risk policy of the company, and supervise the effectiveness of internal risk management systems in order to anticipate and minimize the risks inherent to the activity developed and to adjust the support systems;
vi. The corporate heads of the Management Financial Services, to monitor the management information and the performance of EDP's Pension Fund.
Also, with reference to the period ended on March 31, 2021, the Audit Committee met with the heads of the EDP Subsidiaries' Audit Committees to monitor the main issues of those companies in the consolidated financial statements of EDP Group, having received from:
i. The Audit, Control and Related Parties Committee of EDP Renováveis (EDP R), the information and documentation supporting the favorable opinion issued on the approval of the interim consolidated financial statements for that period;
ii. The Audit Committee of EDP Energias do Brasil (EDP B), the information and documentation supporting the favorable opinion issued on the approval of the Executive Board's accounts and the interim financial statements of the Company and its subsidiaries for that period.
With reference to the period ended on March 31, 2021, the Committee met regularly with EDP Group's Statutory Auditor to monitor and discuss the main issues of the audit work carried out over the condensed (individual and consolidated) financial statements of EDP.

Considering the conclusions of the audit work carried out, the Statutory Auditor issued an unqualified opinion on the EDP's condensed financial statements (individual and consolidated) for the period ended as at 31 March 2021, prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting as adopted in the European Union.

Based on the monitoring of the main aspects of the Company's activity and business performance, the analysis and supervision of the information and documentation provided by the Executive Board of Directors and the heads of corporate Services, the EDP Subsidiaries' Audit Committees and by the Statutory Auditor and not being aware of any material events which may affect the accuracy of the interim information prepared and presented by the Company or the appraisal of the quality of the work performed by the Statutory Auditor or its independence, for the period ended as at March 31, 2021, the Audit Committee issues a favorable opinion on the interim condensed financial statements (individual and consolidated) and the results of EDP's operations on that date, of which stand out:

		(Millions of Euros)
Description	EDP SA	Grupo EDP
Total Net Assets	21.043	42.460
Total Liabilities	12.255	29.170
Total Equity (1)	8.788	9.783
Sales and services rendered	657	3.088
Net Profit for the Period (1)	-25	180
(1) – Attributable to Equity Holders of EDP

by virtue of its understanding that they are in accordance with the applicable accounting principles and the legal and statutory provisions in force.

Lisbon, May 13, 2021.

The Audit Committee

(João Carvalho das Neves - Chairman) (Maria del Carmen F. Rozado) (Helena Sofia Salgado)

CONTACTS

HEAD OFFICE

EDP — Energias de Portugal Av. 24 de Julho, 12 1249-300 Lisboa Portugal Tel: +351 21 001 25 00 Website: www.edp.com

INVESTORS

DRI – Investor Relations Department Av. 24 de Julho, 12 1249-300 Lisboa Portugal Tel: +351 21 001 28 34 E-mail: [email protected]

CLIENTS

EDP Lines Customer services SU Eletricidade (regulated market): 808 505 505 Customer services EDP Comercial (libersalised market): 808 53 53 53 E-Redes: 808 100 100

SUPPLIERS

Tel: 800 100 113 E-mail: [email protected]

HUMAN RESOURCES

P&OD — People & Organizational Development Av. 24 de Julho, 12 1249-300 Lisboa Portugal Tel: +351 21 001 25 89 Website: http://www.linkedin.com/company/edp/

MEDIA

DC – Communications Department Av. 24 de Julho, 12 1249-300 Lisboa Portugal Tel: + 351 21 001 26 80 E-mail: [email protected]

SUSTAINABILITY

E-mail: [email protected]

FUNDAÇÃO EDP

Av. de Brasília, Central Tejo 1300-598 Lisboa Portugal Tel: +351 21 002 81 30 Website: www.fundacaoedp.pt E-mail: [email protected]

STAKEHOLDERS

DRIS – Institutional Relationship and Stakeholders Department Av. 24 de Julho, 12 1249-300 Lisboa Portugal E-mail: [email protected]

AI assistant

EDP-Energias — Audit Report / Information 2021

1909_10-q_2021-06-01_c3da4f4b-c8d9-4afd-b97b-6983b2a27618.pdf

Historic Operational Indicators

Sustainability Indicators

Condensed Consolidated Income Statements for the three-month periods ended at 31 March 2021 and 2020

Condensed Consolidated Statements of Comprehensive Income for the three-month periods ended at 31 March 2021 and 2020

Condensed Consolidated Statements of Financial Position as at 31 March 2021 and 31 December 2020

EDP - Energias de Portugal Condensed Consolidated Statements of Changes in Equity for the three-month periods ended at 31 March 2021 and 2020

Condensed Company Income Statements for the three-month periods ended at 31 March 2021 and 2020

Condensed Company Statements of Financial Position as at 31 March 2021 and 31 December 2020

Condensed Company Statements of Changes in Equity

Notes to the Consolidated and Company Financial Statements

COVID 19 - Macroeconomic, Operational and Accounting Impact

Macroeconomic Impact

Operational Impact

Accounting Impact

1. Economic Activity of EDP Group

2. Accounting Policies

a) Basis of presentation

3. Recent Accounting Standards and Interpretations Issued

Standards, amendments and interpretations issued effective for the Group

Standards, amendments and interpretations issued but not yet effective for the Group

4. Critical Accounting Estimates and Judgements in Preparing the Financial Statements

Ancillary Services

Hydro power plants of Fridão and Alvito

Sale of the portfolio of Hydroelectric Projects

5. Financial Risk Management Policies

Exchange-rate and interest rate risk management

Sensitivity analysis - exchange rate

Sensitivity analysis - Interest rates (excluding the Brazilian operations)

Brazil - Sensitivity analysis - Interest rates

Liquidity risk management

Energy market risk management

6. Consolidation Perimeter

Companies acquired:

Additionally, the following companies were acquired:

Sale of companies with loss of control:

Companies sold and liquidated:

Companies incorporated:

7. Revenues and cost of Energy Sales and Services and Other

8. Other Income

9. Supplies and Services

10. Personnel Costs and Employee Benefits

11. Other Expenses

12. Financial Income and Expenses

13. Income Tax

Relevant events for EDP Group with impact in 2021

Corporate income tax provision

Reconciliation between the theoretical and the effective income tax expense

14. Property, Plant and Equipment

15. Right of use assets

16. Intangible Assets

17. Goodwill

18. Investments in Joint Ventures and Associates

19. Equity Instruments at Fair Value

20. Deferred Tax Assets and Liabilities

21. Debtors and Other Assets from Commercial Activities

22. Other Debtors and Other Assets

(i) Other financial assets at amortised cost

23. Tax Assets

24. Cash and Cash Equivalents

25. Reserves and retained earnings

Dividends

26. Non-Controlling Interests

27. Financial Debt

28. Employee Benefits

29. Provisions

30. Institutional Partnerships in North America

31. Trade payables and other liabilities from commercial activities

32. Other Liabilities and Other Payables

33. Tax Liabilities

34. Non-Current Assets and Liabilities Held for Sale

35. Derivative Financial Instruments

36. Commitments

37. Related Parties

Balances and transactions with subsidiaries, joint ventures and associates

Credits held

Debits held

Expenses

EDP-Energias Audit Report / Information 2021