EDP-Energias — Investor Presentation 2017

Mar 28, 2017

Gas distribution Iberia 1 2

• Strong appetite from financial investors with very competitive cost of capital
• Mature business, visible cash flows with limited growth
• Efficient operation
• Does not provide geographical diversification
• Less-core business: lower scale, limited synergies with EDP's value chain

EDP Renováveis

• Low stock market liquidity: no clear advantage from double listing of EDP and EDPR
• Capital structure perceived as suboptimal
• Electricity value chain trends: integration of renewables, storage, smart grids and customers
• Increase potential for further cooperation with EDP integrated operations: Portugal, Spain, Brazil
• Core business: Global leadership in high-growth renewables segment

Opportunity for portfolio reshuffle reinforcing EDP's strategic targets for 2020

EDP Gas distribution in Spain(1)

Main highlights

1

• Strong and credible investors' consortium
• Proceeds: ~€2.3bn debt reduction in 2017. ~€0.2bn targeted to be paid over the next 5 years
• Capital gain: ~€0.7bn
• EDP keeps gas supply business

Proposed transaction expected to be closed in 2Q17/3Q17

1

Southern Europe gas networks – History of transactions (1) (EV/EBITDA multiple)

Gas distribution in Spain - asset valuation (€ billion)

Proposed transaction value 50% above market consensus in SOP valuations +€0.23/share (+8%(3)) on EDP valuation

2

Expected completion 2Q17/3Q17

Final offer and timings subject to registration with CMVM

(1) Volume Weighted Average Price, defined as the period between 26-09-2016 and 24-03-2017 inclusive (source: Euronext Lisbon) (2) Defined as 24-03-2017 (source: Euronext Lisbon) 5

2

EDP EBITDA breakdown per business profile

(%)

• EDP's weight of low-risk EBITDA bodes well with sector average: 74% vs. 53%
• Renewables growth: Assets' diversification and increasing weight of PPAs with C&I counterparts reduces risk profile
• Reduction of minorities' weight vs. business plan 2016-20 (-4pp)

Maintenance of regulated & long-term contracted activities at ~75% of EBITDA by 2020 with a lower weight of minorities (-4pp)

Net debt	 Proceeds from gas assets disposal net of investment in EDPR shares
EBITDA	 Capital gain in 2017; Deconsolidation of Naturgas;
Net debt /EBITDA	 Reiterating ~3x target for 2020
Weight of minorities(1)	 Reduction in EDPR minorities (-4p.p.)
EPS	 Earnings enhancing as from 2019 onwards

Proceeds from disposal devoted to debt reduction and increasing exposure to renewables

GROWTH	Enhancing growth prospects based on leading positioning in renewables
EFFICIENCY	Simplification of group structure building ground for additional efficiency gains
LOW RISK PROFILE	Regulated & LT Contracted EBITDA virtually unchanged at ~75%
PROFITABILITY	Value enhancing portfolio reshuffling

Reinforce value creation through a more integrated business model and clearer equity story

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

Visit EDP Website

Site: www.edp.pt

Link Results & Presentations:

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

Next Events

May 3 rd - EDP 1Q17 Results