EDP-Energias — Earnings Release 2016

May 5, 2016

This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") solely for use at the presentation to be made on the 5 th of May 2016 and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this presentation is made, or by reading the presentation slides, you acknowledge and agree to be bound by the following limitations and restrictions. Therefore, this presentation may not be distributed to the press or to any other person in any jurisdiction, and may not be reproduced in any form, in whole or in part for any other purpose without the express and prior consent in writing of the Company.

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EBITDA +14% to €1,130m

Adjusted EBITDA: +17% to €1,069m; adverse ForEx impact: -5% YoY

Iberian operations adjusted EBITDA +17% to €569m

Strong hydro volumes in 1Q16 and good energy management results

EDPR EBITDA +29% to €379m

+15% on avg. installed capacity; Avg. load factor +4pp YoY

EDP Brasil EBITDA +43% to €185m

Including -25% forex impact, end of GSF losses in hydro generation and consolidation of Pecém

Net Debt: €17.0bn -2% vs. Dec-15

€0.5bn cash proceeds in Jan-16 from US wind deals (asset rotation + TEI)

Net Profit +11% to €263m Adjusted Net profit +28% to €287m

GSF in Brazil 12% below reference: no material financial impact due to low spot price (PLD) in 1Q16

Installed capacity +9% YoY: -0.2GW coal Spain, +0.4GW Hydro Portugal, +1.2GW wind, +0.7GW coal Brazil(2)

Power production +27% YoY due to rainy and windy weather conditions in Iberia in 1Q16

(1) Fuel oil, thermal special regime (cogeneration, biomass), nuclear and solar (2) Full consolidation since May-15 of 720MW from Pecém I (contracted with a PPA), following full control of the plant backed by acquisition of 50% stake

Adj. EBITDA: +17% on portfolio expansion, energy management results and stronger hydro & wind resources EBITDA +14% including capital gains of €78m in 1Q15 (Gas Spain) and €61m in 1Q16 (Pantanal at EDP Brasil)

• Iberia: -2%, reflecting costs savings on several external services categories
• EDPR: Adjusted Opex/MW -0.4%; +11% of opex in local currencies, +15% avg. installed capacity
• Brazil: in local currency +19%, or excluding Pecém's full consolidation +5%, 4% below inflation

(1) OPEX=Supplies & Services + Personnel costs & employees benefits; (2) Portugal and Spain: INE; Brazil: FVG; monthly average for IGP-M.

+85% hydro production replaces thermal production, particularly coal (-35%)

PPA/CMEC mkt deviation impacted by lower prices: hydro volume +45% vs. avg. year, lower coal production

(1) Diference between gross profit of power plants under CMECs assumptions and gross profit of power plants in the market

EBITDA Generation & Supply Iberia

(€ million)

EBITDA Generation & Supply Iberia: +€91m YoY

• Avg. generation cost -46% on higher hydro contribution
• Mini-hydro special regime: production +88% YoY
• Delivery on new hydro capacity in Portugal: +0.35GW in 1Q16(1); Shutdown of 0.2GW of coal capacity in Spain (Soto 2) (1)
• Transfer of 7 hydro plants in Portugal (627MW) to merchant portfolio following the end of PPA

1Q16 marked by strong hydro resources and good energy management results

• Electricity Portugal: Stable RoRAB at 6.38%; Electricity Spain: €7m positive one-off in 1Q15
• Gas Iberia: €78m gain in 1Q15 on the sale of Gas Murcia, lower distributed gas volumes and other services in 1Q16

Adjusted EBITDA -2% reflects stable regulatory environments and weak demand in 1Q16

(1) 1Q15 excludes: i) €78m gain on the sale of gas assets in Murcia; ii) the €7m recovery of previous years' regulated revenues in electricity distribution in Spain

• North America: 10% capacity increase, strong wind resources (avg. load factor: +6pp) and -9% average selling price
• Iberia: Full consolidation of assets from ENEOP since Sep-15; 1Q16 marked by strong average load factor and low power prices

EDP Brasil EBITDA

(BRL million)

EDP Brasil Adjusted(1) EBITDA

Portugal: Electricity System Regulatory Receivables (€bn)

				+€0.1bn
	4.8		5.3	5.2		~5.3
	Other	2.4	3.0	3.0		2.8
	EDP	2.4	2.3	2.2		2.4
		2013	2014	2015		1Q16
Demand(1) (YoY Chg.)		-1.8%	-0.1%	+1.1%		-0.3%
Wind Factor (1.0=avg.)		1.18	1.11	1.01		1.16
Special Regime Premium (€/MWh)		66	69	60		70

Slight increase of system receivables in 1Q16 on strong wind resources and low power prices

EDP's Regulatory Receivables

(€ million)

Portugal: +€184m YTD; +€278m from chg. in system debt attributable to EDP and -€94m from securitisations

Brazil: -€93m YTD; in BRL terms -R\$417m YTD, on decline of energy costs and recovery of past deviations

Change in Net Debt: Mar-16 vs. Dec-15

(€ billion)

15 (1) EBITDA - Maintenance capex - Interest paid - Income taxes + Chg. in work. Capital excluding regulatory receivables; (2) Expansion capex, Net financial investments, TEI proceeds and Chg. in work. capital from equip. suppliers

Financial Results: 1Q16 vs. 1Q15

(€m)

• Net interest costs: lower avg. cost of debt (4.5% in 1Q16 vs. 4.7% in 1Q15) and lower avg. net debt
• ForEx: Negative impact in 1Q15 from mark-to-market of EUR/USD
• Capital gains: €11m in 1Q16 from sale of stake in Tejo Energia
• Lower capitalised financial costs: following gradual commissioning of new hydro plants in Portugal
• Other: lower gains with tariff deficit securitisation (-€26m YoY)

Positive impact from decline of average cost of debt to 4.5% in 1Q16

(€ million)	1Q15	1Q16	∆ %	∆ Abs.
EBITDA	988	1,130	+14%	+141
Net Depreciations and Provisions	337	369	+9%	+32	Increase of installed capacity: EDPR, Pecém, hydro Portugal
EBIT	651	760	+17%	+109	 Average cost of debt: -20bps to 4.5%
Financial Results & Associated Companies	(210)	(188)	-10%	+22
Income Taxes	82	152	+84%	+69	 Lower tax rate in 1Q15 due to Gas Murcia gain
Extraordinary Energy Tax in Portugal	61	59	-3%	-2	 Extraordinary energy tax: 0.85% on net fixed assets in Portugal (annual amount fully booked in 1Q)
Non-controlling interests	62	100	+62%	+38	 Increase of minorities at EDPR level and gain on sale of Pantanal at EDPB in 1Q16
Net Profit	237	263	+11%	+26	 Adjusted net profit(1): +28% YoY from €224m in 1Q15 to €287m in 1Q16

(1) Adjustments in 1Q15: sale of Gas Murcia (€74m); adjustments in 1Q16: sale of Pantanal (€24m) and sale of Tejo Energia (€11m); and extraordinary energy tax in Portugal in both periods 17

Visit EDP Website

Site: www.edp.pt

Link Results & Presentations:

http://www.edp.pt/EDPI/Internet/EN/Group/Investors/Pu blications/default.htm

IR Contacts

Miguel Viana, Head of IR Sónia Pimpão João Machado Maria João Matias Sérgio Tavares Noélia Rocha

E-mail: ir@edp.pt Phone: +351 210012834

Next Events

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June 7th: 2016 Global Energy & Power Executive Conference in New York (RBC)

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