Galp Energia

Investor Presentation • Apr 15, 2020

FY2019Results Presentation

Galp Gás Natural Distribuição, S.A.

April, 2020

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.

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Operating Results

Financial Overview

Relevant Facts Occurred in 2019

• • The average RoR for the calendar year ²⁰¹⁸ was 6.24%, while the RoR for the calendar year ²⁰¹⁹ was 5.70%.
• • S&P Global Ratings reaffirmed GGND's long-term corporate credit rating "BBB-" ("investment grade"), with stable outlook.
• • Investment effort is aligned with the strategic guidelines contributing to ensure the competitiveness of natural gas distribution tariff.
• • GGND completed the acquisition of 58.03% of Tagusgás' share capital, for an amount of approximately € 31.8 million.
• • GGND entered into ^a five-year financing contract with Mizuho, in the amount of € ⁷⁰ million to finance Tagusgás acquisition and its refinancing.
• •The tariff deviation amounted to € 24.6 million, an increase of € 8.4 million YoY.
• •Publication of PNEC ²⁰³⁰ – transition of the energy sector.

Operating Results

Financial Overview

Operating Results

Stable Performance Focused on Sustainability of the System

FY2019 RESULTS

6

Operating Results

Financial Overview

Financial Overview

Maintain Level of Key Indicators

NET ^INCOME€m+1.3 %

Revenue decreased by €4.3m mainly due to decrease of RoR (average RoR in FY2019 was 5.70% while that in FY2018 was 6.24%)

EBITDA decreased by €1.7m mainly due to reduction in Allowed Revenue above mentioned, not offset by the positive Tagusgás impact

Net Income increased by €1.0m in spite of abovementioned decrease, due to the positive fair value of revaluation of initial Tagusgás stake

Financial Overview

Increase of Net Debt due to Tagusgás Acquision

(1)Available Cash Flow post CAPEX: Cash flows from operating activities – CAPEX

(2)Net Debt; Bank loans + Bonds+ Accrued Interests – Cash and cash equivalents. In Net Debt calculation, it considers the gross amount not deducted from the upfront fee

Financial Overview

Prudent Financial Policy Maintaining Investment Grade Rating

FY2019 RESULTS