EDP-Energias — Earnings Release 2020

Jan 21, 2021

Lisbon, January 21 st , 2021

KEY HIGHLIGHTS

• Renewables represented 74% of electricity generated by EDP in 2020. Electricity produced from renewable energy sources rose 7% YoY, with hydro generation in line with historical average and wind generation 8% below expected volumes. Coal generation showed a strong decline of 46% YoY, despite an increase in 4Q20, explained by the burning of the remaining coal stocks ahead of the anticipated closure of Sines plant.
• As of Dec-20, renewables represented 79% of EDP's installed capacity of 23.7 GW. As of 2020 YE, there were 2.3 GW of wind and solar projects under construction. The 4Q20 was marked by a proactive portfolio management, including the disposal of 6 hydro plants in Portugal (1.7 GW), disposal of 2 CCGT plants in Spain (0.8 GW), asset rotation of wind and solar portfolios in the US and Spain (0.8 GW) and the acquisition of Viesgo's renewables portfolio (0.5 GW). Our coal capacity in Iberia was reduced by 49% YoY due to the anticipated closure of Sines coal plant in Portugal (1.2 GW), which finished electricity production on December 24th. Coal capacity will continue to decline in 2021 with the early shutdown of Soto 3 plant (0.3 GW) in Spain.
• Electricity distributed in Portugal declined 2% in 4Q20, a slight recovery vs. the overall 3% decline in 2020. In Spain, the number of clients connected to our electricity distribution networks has more than doubled in 4Q20, reflecting the acquisition of Viesgo in Dec-20. In Brazil, electricity distribution rose 2% YoY in 4Q20, but despite this recovery in the last quarter, volumes distributed fell 5% in 2020.
• In the supply business, in Portugal, electricity volume sold declined 5% in 2020 (-7% in 4Q20) and the number of clients fell 1.8% YoY. In Spain, the disposal on December 1 st of our retail energy supply activities resulting on a higher focus on the corporate segment, explain the sharp reduction in the number of clients and the significant decline in energy volumes in 4Q20.

INSTALLED CAPACITY

ELECTRICITY GENERATION

Capacity evolution | YoY

Capacity evolution YoY		Dec-20	Dec-19	D	D %
	Wind	11,155	10,667	+488	+5%
	North America	6,005	5,853	+152	+3%
1,560	Europe	4,714	4,346	+367	+8%
839 1,335	Brazil	436	467	-32	-7%
25 200	Hydro	7,127	8,785	-1,658	-19%
1,683	Iberia (1)	5,527	7,186	-1,658	-23%
	Brazil		1,599
843	Solar	345	145	+200	+138%
-3,366 1,180	Gas Iberia	2,886	3,729	-843	-23%
	Coal	1,970	3,150	-1,180	-37%
-1,195 -3,001	Iberia (2)	1,250	2,430	-1,180	-49%
Built-out Sell down Decom. ∆ YoY (1)	Brazil	720	720
	Nuclear Spain	156	156
Capacity under construction Dec-20	Cogen. & Waste	42	49	-7	-14%
2,320 MW (2)	Total	23,680	26,681	-3,001	-11%

(1) Including the acquisition of renewables business of Viesgo. (2) Includes equity participations in offshore.

(1) Includes small-hydro; (2) Excludes Sines, with operations ending in Dec-20, and decommissioning works started in Jan-21.

Electricity generation 2020	GWh	2020	2019	D	D %	4Q20	4Q19	D	D %
	Wind	28,272	29,768	-1,495	-5%	8,137	8,100	+37	+0%
2%	North America	17,231	16,297	+934	+6%	4,982	4,398	+584	+13%
	Europe	9,949	11,713	-1,764	-15%	2,847	3,203	-356	-11%
9%	Brazil	1,093	1,757	-665	-38%	308	499	-191	-38%
	Hydro	18,792	14,110	+4,682	+33%	5,198	5,143	+54	+1%
15% 44%	Iberia(1)	13,249	9,982	+3,267	+33%	3,648	4,047	-399	-10%
64.3 TWh	Brazil	5,543	4,129	+1,415	+34%	1,549	1,096	+453	+41%
0.4%	Solar	265	273	-8	-3%	46	48	-2	-4%
	Gas Iberia	9,759	10,184	-425	-4%	1,943	2,719	-776	-29%
29%	Coal	5,821	10,861	-5,040	-46%	2,665	2,128	+536	+25%
74%	Iberia	4,235	7,154	-2,919	-41%	1,598	943	+655	+69%
Renewables	Brazil	1,586	3,707	-2,121	-57%	1,067	1,185	-118	-10%
Wind Hydro Solar Gas Coal Other	Nuclear Spain	1,196	1,223	-27	-2%	339	335	+4	+1%
	Cogen. & Waste	211	270	-59	-22%	62	45	+17	+38%
	Total	64,318	66,690	-2,372	-4%	18,390	18,518	-128	-1%

(1) Includes small-hydro

Load factors	2020	2019	4Q20	4Q19
Wind	30%	32%	34%	36%
North America	33%	34%	37%	36%
Europe	26%	28%	29%	33%
Brazil	38%	43%	42%	48%
Hydro
Iberia(1)	21%	16%	24%	26%
Brazil	39%	29%	44%	31%
Solar	21%	21%	14%	15%
Gas Iberia	30%	31%	26%	33%
Coal
Iberia	20%	34%	30%	18%
Brazil	25%	59%	67%	75%
Nuclear Spain	88%	90%	99%	97%
(1) Includes small-hydro

Lisbon, January 21st, 2021

ENERGY SUPPLY

Volumes of electricity supplied in Iberia | 2020

				Volumes supplied (GWh)				No. of Clients (th)
	2020	2019	D %	4Q20	4Q19	D %	2020	2019	D %
Electricity(1)	53,439	54,394	-1.8%	11,844	18,821	-37.1%
Iberia	27,885	30,358	-8.1%	6,990	7,813	-10.5%	4,050	5,270	-23.1%
Portugal	17,095	17,995	-5.0%	4,456	4,808	-7.3%	4,028	4,104	-1.8%
Spain	10,790	12,362	-12.7%	2,535	3,005	-15.6%	22	1,166	-98.1%
Brazil	25,554	24,036	+6%	4,854	11,008	-55.9%
Gas(1)	11,543	11,971	-3.6%	2,919	3,687	-20.8%	657	1,562	-57.9%
Portugal	4,127	3,793	+8.8%	1,115	1,088	+2.5%	651	659	-1.1%
Spain	7,416	8,178	-9.3%	1,803	2,599	-30.6%	6	903	-99.4%
(1) Last resort supply excluded for Portugal but included for Spain

ELECTRICITY DISTRIBUTION

Iberia					Brazil
	2020	2019	D	D %		2020	2019	D	D %
Electricity distributed (GWh)	55,804	58,067	-2,263	-3.9%	Electricity distributed (GWh)	24,421	25,591	-1,170	-4.6%
Portugal(1)	48,245	49,805	-1,560	-3.1%	Final customers	13,429	14,202	-773	-5.4%
Spain	7,559	8,262	-703	-8.5%	Access customers	10,992	11,389	-397	-3.5%
Customers connected (th)	7,673	6,946	+728	+10.5%	Customers connected (th)	3,601	3,524	+76	+2.2%
Portugal(1)	6,302	6,277	+25	+0.4%	EDP São Paulo	1,980	1,936	+44	+2.3%
Spain	1,371	668		+702 +105.1%	EDP Espírito Santo	1,620	1,588	+32	+2.0%

(1) Electricity volume that entered the distribution grid

MARKET INDICATORS

Iberian market		2020	2019	D %
Average electricity spot price - Spain	€/MWh	34.0	47.7	-29%
Hydro coefficient - Portugal	1.0 = avg. Year	0.97	0.81	20%
Hydro coefficient - Spain	1.0 = avg. Year	1.00	0.90	11%
Wind coefficient - Portugal	1.0 = avg. Year	0.94	1.07	-12%
Brazilian market
Average spot price (PLD)	R\$/MWh	177	227	-22%
Generation Scalling Factor (GSF) (1)	%	80%	81%	-1%
Exchange rates
EUR/USD - Average		1.14	1.12	-2%
EUR/BRL - Average		5.89	4.41	-25%
EUR/USD - End of period		1.23	1.12	-9%
EUR/BRL - End of period		6.37	4.52	-29%

(1) Weighted average

KEY ANNOUNCEMENTS

13-Oct-2020	EDP secures a PPA for two solar projects in the U.S. totalling approximately 100 MW
01-Dec-2020	EDP concludes the sale to Total of 2 CCGT plants and B2C supply business in Spain for an entreprise value of €480 million
14-Dec-2020	EDP is awarded with long-term CFD for 220 MW at auction in Poland
15-Dec-2020	ERSE announces electricity tariffs for 2021
15-Dec-2020	EDP concludes an asset rotation deal for wind farms in Spain for a total consideration of €450 million
16-Dec-2020	EDP concludes the acquisition of Viesgo for an entreprise value of €2.7 billion
17-Dec-2020	EDP concludes the sale of a portfolio of 6 Hydro plants in Portugal for €2.2 billion
28-Dec-2020	EDP concludes \$0.7 billion sell-down deal for a wind and solar portfolio in North America
28-Dec-2020	EDP sells Portuguese Tariff Deficit for €0.3 billion

RESULTS RELEASE

EDP's 2020 results will be released after Euronext Lisbon market close on February 24th , 2021. A conference call will be hosted by EDP's CEO, Mr. Miguel Stilwell d'Andrade and EDP's CFO, Mr. Rui Teixeira, on the same day, at 17:00 GMT. More information will be available on www.edp.com.