Galp Energia

Investor Presentation • Apr 30, 2019

Cautionary Statement

By attending or reading this presentation, you acknowledge and agree to be bound by the following limitations and restrictions. This document has been prepared by Galp Gás Natural Distribuição, S.A. ("GGND" 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, 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 (ii) 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 GGND markets; the impact of regulatory initiatives; and the strength of GGND competitors. The forward-looking 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 GGND 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 GGND or the industry to differ materially from those results expressed or implied in this presentation by such forward-looking statements.

The information, opinions and forward-looking statements contained in this presentation reflect the information available as at the date of this presentation and GGND's views on the matters referred herein, and are subject to change without notice. GGND 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.

No representation or warranty, express or implied, is given or will be given by or on behalf of GGND or any of their respective affiliates or agents, or any of such persons' directors, officers, employees or advisers or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation and any reliance you place on such information or opinions will be at your sole risk. In addition, no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by GGND or any other person in relation to such information or opinions or any other matter in connection with this presentation or its contents or otherwise arising in connection therewith. Neither GGND nor any of their respective affiliates, advisers or agents undertakes any obligation to provide the respective recipients with access to additional information or to update this Presentation or to correct any inaccuracies in the information contained or referred to therein.

By reading this presentation, you agree to be bound by the foregoing and to maintain confidentiality regarding the information disclosed in this presentation.

2018 Overview

Operating Results

Financial Overview

2018 OverviewRelevant Facts Occurred in 2018

• • RoR of the GY2018-2019 was 5.82% comparing to 6.65% in the previous GY resulting in 6.24% of average RoR in FY2018 while that in FY2017 was 6.42%.
• • S&P Global Ratings affirmed GGND's long-term corporate credit rating of "investment grade" BBBwith stable outlook.
• • Investment effort is aligned with the strategic guidelines contributing to ensure the competitiveness of natural gas distribution tariff.

2018 Overview

Operating Results

Financial Overview

Operating ResultsStable Performance Focused on Sustainability of the System

2018 Overview

Operating Results

Financial Overview

Financial OverviewMaintain Level of Key Indicators

(*1) Pass-through item which does not impact on EBITDA.

FY2018 RESULTS PRESENTATION | April 2019

• Revenue decreased by €11m mainly due to:
• Decrease of Network Access Tariff (*1)
• Decrease of RoR (average RoR in FY2018 was 6.24% while that in FY2017 was 6.42%)
• EBITDA decreased by €0.9m mainly due to abovementioned decrease in revenue offset by decrease of net operating costs

Net Income decreased by €0.9m mainly due to abovementioned decrease in EBITDA

Financial Overview (cont'd)

Cash Flow Increased due to Improvement of both Operation and Financing Activities

Financial Overview (cont'd)

Prudent Financial Policy Maintaining Investment Grade Rating

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