Galp Energia

Investor Presentation • Feb 20, 2018

Cautionary statement

By attending or reading this presentation, you acknowledge and agree to be bound by the following limitations and restrictions. This presentation has been prepared by Galp Energia, SGPS, S.A. ("Galp" or the "Company") and may be amended and supplemented, but may not be relied upon for the purposes of entering into any transaction. This presentation is strictly confidential, is being distributed to a limited range of persons solely for their own information and may not (i) be distributed to the media or disclosed to any other person in any jurisdiction, nor (ii) be reproduced in any form, in whole or in part, without the prior written consent of the Company.

Although the Company has taken reasonable care in preparing the information contained herein, no representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein or any other material discussed at the presentation. Neither the Company nor any of its affiliates, subsidiaries, shareholders, representatives, agents, employees or advisors shall have any liability whatsoever (including in negligence or otherwise) for any loss or liability howsoever arising from any use of this presentation or its contents or any other material discussed at the presentation or otherwise arising in connection with this presentation.

This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or otherwise acquire securities of the Company or any of its subsidiaries or affiliates in any jurisdiction or an inducement to enter into investment activity in any jurisdiction. Neither this presentation nor any part thereof, nor the fact of its distribution, shall form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever in any jurisdiction.

This presentation is made to, and directed only at, persons who are outside the United Kingdom, or who are within the United Kingdom and either (i) having professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (the "Order"), or (i) high net worth entity, falling within Article 49(2) of the Order, or (iii) a person to whom the materials may be otherwise lawfully communicated, (all such persons together being referred to as "Relevant Persons"). This presentation must

not be acted or relied on by persons who are not Relevant Persons.This presentation is made to, and directed only at, persons who are not a "Retail Investor", being a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU ("MiFID II"); or (ii) a customer within the meaning of Directive 2002/92/EC, where the customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II.

Neither this presentation nor any copy of it, nor the information contained herein, in whole or in part, may be taken or transmitted into, or distributed, directly or indirectly in or to the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities laws. This presentation does not constitute and should not be construed as an offer to sell or the solicitation of an offer to buy securities in the United States. No securities of the Company have been registered under the United States Securities Act of 1933 or the securities laws of any state of the United States, and unless so registered may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements are statements other than in respect of historical facts. The words "believe", "expect", "anticipate", "intends", "estimate", "will", "may", "continue", "should" and similar expressions usually identify forward-looking statements. Forward-looking statements may include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; energy demand and supply; developments of Galp's markets; the impact of regulatory initiatives; and the strength of Galp's competitors. The forwardlooking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although Galp believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. No assurance, however, can be given that such expectations will prove to have been correct. Important factors that may lead to significant differences between the actual results and the statements of expectations about future events or results include the Company's business strategy, industry developments, financial market conditions, uncertainty of the results of future projects and operations, plans, objectives, expectations and intentions, among others. Such risks, uncertainties, contingencies and other important factors could cause the actual results of Galp or the industry to differ materially from those results expressed or implied in this presentation by such forward-looking statements.

Actual future results, including financial and operating performance; demand growth and energy mix; Galp's production growth and mix; the amount and mix of capital expenditures; future distributions; resource additions and recoveries; project plans, timing, costs, and capacities; efficiency gains; cost savings; integration benefits; product sales and mix; production rates; and the impact of technology could differ materially due to a number of factors. These include changes in oil or gas prices or other market conditions affecting the oil, gas, and petrochemical industries; reservoir performance; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation, including environmental regulations and political sanctions; the outcome of commercial negotiations; the actions of competitors and customers; unexpected technological developments; general economic conditions, including the occurrence and duration of economic recessions; unforeseen technical difficulties; and other factors.

The information, opinions and forward-looking statements contained in this presentation reflect the information available as at the date of this presentation and Galp's view on the matters referred herein, and are subject to change without notice. Galp and its respective representatives, agents, employees or advisors do not intend to, and expressly disclaim any duty, undertaking or obligation to, make or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this presentation to reflect any change in events, conditions or circumstances.

Key takeaways

Solid financial position entering into a new cash cycle

Developing a resilient and competitive portfolio

Working on the next growth cycle (2020⁺)

Commitment to shareholder value creation

2017 commitments delivered

Project execution Financial Performance Business development Reinforcing pre-salt exposure Launching digital initiatives Preparing lower carbon investments Positive Group post-dividend FCF Maintaining solid financial position Delivering efficiency improvements WI production c.93 kboepd Downstream oil and gas +4% volumes Acquisition of 20% Carcará North 3% BM-S-8 Ebitda c.1.9 €bn Capex c.1.0 €bn Record production (>100 kboepd) Coral South FLNG FID Strong downstream performance

Oil & Gas to maintain a key role while renewables growing

Total primary energy demand mix in 2040 by scenario (bn toe)

Source: IEA World Energy Outlook 2017.

Note: Galp scenarios consider different intensities of technological disruption and market regulation.

Energy demand expected to grow under any scenario

Galp developed four scenarios internally

A clear strategy

Technology Innovation Digitalisation

Offer innovative and differentiating solutions

Top quartile upstream portfolio

Portfolio breakeven (\$/bbl)

Source: Rystad, January 2018 (benchmark includes IOC, Majors and Integrated companies). Note: Breakeven NPV10, 2018 real terms. Weighted portfolio breakeven based on 2025 average production.

Exposure to world-class assets

Maintain portfolio resilience and competitiveness

Brazilian pre-salt: Cornerstone of future growth

Focus on BM-S-11 FPSO execution and development enhancement

De-risking existing high quality portfolio

Sizeable resources with low cost base

Fostering new opportunities

Mozambique: Developing a world-class LNG project

Global LNG supply and demand (mtpa)

Note: Assumes 90% plant utilisation capacity and LNG demand CAGR 2016-2030 of 5%, and annual average decline for operating supply of c.2%.

Time to market and scalability advantage

Coral South FLNG under development

Preparing Mamba LNG 1 st phase

Grow a competitive and resilient upstream portfolio

Working interest production (kboepd)

Execute and extract focus / Accelerate de-risking phase

Balance exposure to gas

Selectively feed the upstream funnel

Adapting Refining & Marketing to market changes

Deliver efficiency and enhanced conversion initiatives

Prepare for IMO global cap

Explore petrochemicals integration

Reinforce market share in Iberia

Improve convenience and customer experience

Develop African business clusters

Developing a sustainable Gas & Power business

Adapt supply basket to market trends

Expand trading activities

New market opportunities / outlets

Increase market share in Iberia

New business segments

Energy efficiency solutions provider

Building portfolio optionality

Develop a portfolio of renewable energy

Enhance client centricity

New business models

Promote digital mindset

Innovation & digitalisation

Focus on innovative technologies Develop mobility solutions Foster innovation agenda

Growing sustainably

Promote safety above benchmark, and 50% reduction target in 2018¹

Leading environmental performance and 20% cut in refining CO² intensity²

safe operations

strategy

Applying internal carbon price (\$40/tCO2e) sensitivity

Commitment to Zero Routine Flaring

¹Tier 1 events, based on 2015.

Turning into a sustainable FCF generator

Financial outlook

FCF growth from a highly competitive and resilient portfolio

Ability to fund further profitable growth

Disciplined capital allocation

Prioritizing reinvestment in value accretive opportunities

Oil & Gas to remain core and starting to develop low carbon

Dividend now considered at €0.55/sh

Potential to further increase dividends, while maintaining financial discipline

Positioned to deliver unique growth and value

Beating our 2017 guidance

€913 m +85% YoY

	Guidance @CMD17	Actual		E&P	€913 m +85% YoY
Ebitda	€1.5 - €1.6 bn	€1.9 bn			Higher production and oil price
				R&M	€785 m +36% YoY
Capex	€1.0 - €1.2 bn	€1.0 bn			Supportive refining margin and marketing
Net debt/ Ebitda	<2.0x	1.0x		G&P	€141 m (55%) YoY
					GGND deconsolidation and fewer trading opportunities

¹Includes c.€150 m payment related to Carcará North signing bonus.

Positive post-dividend cash flow during 2017

2017 Cash flow (€m)

Organic growth to support CFFO

CFFO (€m)

Group Ebitda expected at c.€1.8 – €1.9 bn in 2018

Upstream CFFO with CAGR 2017-20 of c.30%

Downstream CFFO of €0.8 - €0.9 bn during the period

Group CFFO CAGR 2017-20 above 10%

Capex to average c.€1 bn p.a.

Upstream 2018-20 capex breakdown

Cash generation allowing for optionality

Cash sources and uses (€m)

Post-dividend FCF²(€m)

Key takeaways

Delivering on commitments and strengthening portfolio

28 | Capital Markets Day | February 20, 2018

Robust base of high quality resources

2P Reserves (mmboe) 2C Resources (mmboe)

Source: DeGolyer and McNaughton report as of 31.12.2017. ¹ Three-year average based on 1P reserves. ² Based on 2P reserves.

29 | Capital Markets Day | February 20, 2018

Unique growth from identified projects

Working interest production (kboepd)

Lula North (2018)	Berbigão/Sururu (2018/19)
Lula Ext. South (2018)	Kaombo South (2019)
Kaombo North (2018)	Atapu 1 (2019)
Sépia East (2021)	Carcará
Coral South (2022)	st Mamba 1 phase
Lula West	Mamba subs.
Atapu 2	Júpiter

Risked exploration

Optimise developments | New ventures

Note: Galp's view.

Execution of Lula and Iracema on track…

7 units producing, with 6 at plateau

2 additional FPSOs to start-up in 2018

Start-up of first replicant unit

c.80% of 1st phase capex realised

Expected avg. plateau period of 4 years

Benefiting from learning curve

Current recovery factor of 31%

Leveraging strong partnerships

Note: Galp's view.

… with increased focus on enhancing extraction

Lula and Iracema recovery factor evolution

Improved oil recovery

Infill drilling activities

Processing specifications

Reservoir management

Enhanced oil recovery

WAG

Subsea boosting and separation

4D seismic

The next pre-salt growth project

Greater Iara

FPSOs under construction with production to start at Berbigão

Ongoing drilling campaign and optimising PoD for three different accumulations

EWT and further appraisal in Sururu to support future development activities

Unitisation pre-agreements established for two areas, and now focusing on Atapu

33 | Capital Markets Day | February 20, 2018 Source: Wood Mackenzie. Bubble size reflects expected recoverable resources of selected deepwater projects with FID in the last 5 years and probable developments.

Carcará: top tier project driving 2020⁺ growth

Deepwater development projects competitiveness

Accessing Carcará North with a 20% interest and increasing BM-S-8 stake to 17%

At least 2 bn bbl of high quality oil expected to be recovered with start-up by 2023/24

Carcará reservoir quality to exceed Santos basin average performance with breakeven <\$40/bbl

DST and one appraisal well in Carcará, and one exploration well in Guanxuma during 2018

Further pre-salt contribution from identified projects

BM-S-24 | Sépia East and Júpiter

• Unitisation process between Sépia and Sépia East expected to be concluded in 2018
• Production from the unitised area to start in 2021, with FPSO awarded
• Maturing large scale Júpiter discovery development concept and technological feasible solutions

FLNG with 3.4 mtpa capacity, starting the developments of Rovuma's discoveries

Enhancing the development concept towards a robust and competitive solution

Mozambique: developing a world-class gas project

Coral South Mamba onshore

Focus on execution to ensure first gas by 2022 Strong partnership levering a large scalable project

Optimising Angola projects

Block 32 and block 14/14k

Production from block 32 to start in 2018, offsetting decline from block 14 mature fields

Drilling campaign in Kaombo proceeding

Optimising development in block 14

Screening further opportunities

Regional focused exploration strategy

Area of interest

Galp's presence

Leveraging presence in Brazilian pre-salt top tier acreage

New ventures to include both selected DRO and exploration areas

Developing competitive advantages and synergies with current portfolio

2018: Key milestones

Two new replicants onstream in Lula and Kaombo start-up

• Maintain top production operational efficiency of FPSOs

• st phase development concept

• Focus on DRO and exploration areas in the Atlantic margin

• Develop and mature operated positions in Namibia and

Positioned to deliver unique growth and value

Galp assumptions	2018E	2019E	2020E
Brent price (\$/bbl)	60	60	65
Benchmark refining margin1	3.5	3.2	4.3
EUR:USD	1.20	1.20	1.20

			Ebitda		FCF
Sensitivities	Change	2018E	2020E	2018E	2020E
Brent price	\$5.0/bbl	€140 m	€200 m	€100 m	€80 m
Benchmark refining margin1	\$1.0/bbl	€90 m	€100 m	€90 m	€70 m
EUR:USD	0.05	(€70 m)	(€110 m)	(€30 m)	(€35 m)

Sensitivity to macro environment volatility

	2016	2017
Gross debt	€2.9 bn	€3.1 bn
Cash and equivalents	€1.0 bn	€1.2 bn
Net Debt	€1.9 bn	€1.9 bn
Net Debt to Ebitda	1.3x	1.0x
Available credit lines	€1.2 bn	€1.3 bn
% Debt @ fixed rate	50%	60%

Key indicators on Galp's debt

Debt indicators Debt reimbursement (€m)

Galp's reserves and resources

Reserves and resources (mmboe)

Reserves	2016	2017	% Chg.
1P	274	383	40%
2P	673	748	11%
3P	927	965	4%

Contingent resources	2016	2017	% Chg.
1C	300	296	(1%)
2C	1,320	1,352	2%
3C	2,993	3,297	10%

Prospective resources	2016	2017	% Chg.
Unrisked	2,658	3,835	44%
Risked	383	566	48%

All figures are based on DeGolyer and MacNaughton report as of 31.12.2017. Reserves figures on a net entitlement basis. Contingent resources and prospective resources on a working interest basis.

Institutional investors account for 83% of Galp's Free Float, o.w.:

• 51% Europe
• 44% North America
• 5% Rest of the world

Galp's shareholding structure

Over 22 years of experience in Oil & Gas and a Galp Board member since 2007. Former Board executive for more than 12 years in the energy and beverage industries.

Chief Financial Officer	COO Exploration & Production	COO Supply, Refining & Planning	COO Iberian Oil Marketing & International Oil
Filipe Silva	Thore E. Kristiansen	Carlos Silva	Tiago Câmara Pestana
Over 25 years of experience in the banking sector. Galp	Over 25 years of experience in Oil & Gas	Over 20 years of experience in the	Over 25 years of experience in the retail

Pedro Ricardo

Over 20 years of experience in the gas sector and Galp Board member since 2015. Held senior executive roles in supply and trading of natural gas.

Carlos Costa Pina

Over 17 years of experience in public senior level functions in capital markets, finance and insurance. Galp Board member since 2012.

Carlos Gomes da Silva

COO Gas & Power

Chief Corporate Officer / New Energies

Chief Executive Officer

A committed and experienced team

and amortisation	ROACE	Return on Average Capital Employed

\$ (or USD)	United States Dollar	Chg.	Change	IMO	International Maritime Organization
%	Percentage	CMD17	Capital Markets Day 2017	Kboepd	Thousand barrels of oil equivalent per day
&	And	CO2	Carbon dioxide	LNG	Liquefied Natural Gas
@	At	COO	Chief Operating Officer	m	Million
€ (or EUR)	Euro	CPS	Current Policies Scenario	mmboe	Million barrels of oil equivalent
≈	Approximately	D&C	Drilling and Completion	mtpa	Million tonnes per annum
x	Times	DD&A	Depreciation, Depletion and Amortisation	NG	Natural Gas
<	Below	DRO	Discovered Resources Opportunities	NPS	New Policies Scenario
>	Above	DST	Drill Stem Test	NPV	Net Present Value
+	Plus	E	Expected	p.a.	Per annum
1C; 2C; 3C	Contingent resources	E&P	Exploration and Production	PoD	Plan of Development
1P	Proved reserves	Ebit	Earnings before interest and taxes	R&M	Refining and Marketing
2P	Proved and probable reserves	Ebitda	Earnings before interest and taxes, depreciation and amortisation	ROACE	Return on Average Capital Employed
3P	Proved, probable and possible reserves	EOR	Enhanced Oil Recovery	R/P	Reserves to Production Ratio
4D	Four dimensional	EPC	Engineering, Procurement and Construction	RRR	Reserve Replacement Ratio
Avg.	Average	EWT	Extended Well Test	SDS	Sustainable Development Scenario
Bbl	Barrel	o.w.	Of which	sh	share
bn	Billion	FCF	Free Cash Flow	tCO2e	Tonnes of Carbon dioxide equivalent
boe	Barrel of oil equivalent	FID	Final Investment Decision	toe	Tonnes of Oil Equivalent
c.	Circa	FLNG	Floating Liquefied Natural Gas	U.K.	United Kingdom
CAGR	Compound Annual Growth Rate	FPSO	Floating Production Storage Offloading	U.S.	United States of America
Capex	Capital expenditure	G&P	Gas and Power	WAG	Water Alternating Gas
CDP	Carbon Disclosure Project	GGND	Galp Gás Natural Distribuição, S.A.	WI	Working interest
CEO	Chief Executive Officer	IEA	International Energy Agency	YE	Year end
CFFO	Cash Flow from Operations	IFRS	International Financial Reporting Standards	YoY	Year on Year

Acronyms

	\$ (or USD) United States Dollar
$\frac{0}{0}$	Percentage
&	And
@	At
€ (or EUR) Euro
$\approx$	Approximately
X	Times
$\prec$	Below
$\geq$	Above
÷	Plus
	1C; 2C; 3C Contingent resources
1P	Proved reserves
2P	Proved and probable reserves
3P	Proved, probable and possible reserves
4D	Four dimensional
Avg.	Average
Bbl	Barrel
bn	Billion
boe	Barrel of oil equivalent
C.	Circa
CAGR	Compound Annual Growth Rate
Capex	Capital expenditure
CDP	Carbon Disclosure Project
CEO	Chief Executive Officer
CFFO	Cash Flow from Operations