Galp Energia

Investor Presentation • Feb 18, 2020

Capital Markets Day

An integrated energy player developing profitable and sustainable businesses

February 18 2020

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.

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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. Forwardlooking statements may include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for tuture 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 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 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.

2019 in review Another year of strong delivery

A consistent growth path reflecting a successful strategy execution

5-year operating performance

Brent (100 basis)

Integrated profile leads to resilient performance despite high volatility

Strong delivery, consistently above quidance

Strategy Overview

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Positioning Galp for the future of energy

Integrating energy transition across all business units

	Upstream	Refining & Midstream	Commercial	Renewables & New Businesses
Strategic quidelines	Value driven and sustainable porttolio	Increase energy efficiency and adapt to market trends and regulation	Customer centric approach with unique integrated offer	Build a competitive renewable generation business
	Low cost production and strong cash flow generation	Integrated supply and trading portfolio	Digital transformation and innovation	Capture value trom innovative and differentiating solutions

High quality upstream portfolio to sustain a value driven strategy

Top tier projects delivering differentiated growth

Continuing to gradually improve our refining system

Commercial transformation

"One Galp" client approach

Build a competitive renewable business

benefiting from value chain integration

Becoming a leader in Iberian solar PV generation

13 | Capital Markets Day – February 2020

Addressing transition challenges

while reducing carbon intensity

Capital allocation guidelines

Balanced investments supporting long-term value creation

15 | Capital Markets Day - February 2020 2 DPS growth target from 2018 dividend of €0.6325/sh.

Continue to deliver sustainable value growth

Financial Outlook

2019 strong cash generation

keeping a robust financial position

Cash Flow (€ m)

CFFO up 19% YoY despite challenging refining conditions

Solid post-dividend cash flow, already considering distribution increase

Net debt to Ebitda of 0.7x and reducing average cost of debt

18 | Capital Markets Day - February 2020

Reshaping the organisation

to reflect new business profile

Upstream Cash engine from existing developments

2020-22 Cash flow (€ bn) Brent: \$65 - 70/bbl

Cash flow growth supported by new pre-salt projects with higher cash margins

CFFO at >€2 bn p.a. from 2025

Capex considering one owned FPSO in Bacalhau and updated Rovuma LNG

Refining & Midstream Improving and adapting our asset base

2020-22 Cash flow (€ bn) Galp ref. margin: \$4.0 - 5.0/boe

Fully capturing \$1/boe refining initiatives, with additional improvements contributing after the period

Ebitda expected at >€350 m p.a. with Midstream contribution of c.€150 m p.a.

Associates contribution from GGND and international pipelines stakes

Commercial

Unlocking value from a customer driven approach

2020-22 Cash flow (€ bn)

Higher contribution from an integrated commercial approach

Ebitda expected at €400 - 450 m p.a. during 2020-22

Accelerating investments to tap new value pools

Renewables & New Businesses

Accelerating portfolio developments

1 Net of project financing.

2 Galp's base case assumes an Iberian pool price of c.€50/MWh, real terms 2019. 3 Considering operating and under development projects, on a 100% basis.

Strong cash generation to fund long term growth and distributions

Sources & Uses of cash 2020-221 (€ bn)

Brent: \$65 - 70/bbl Galp ref. margin: \$4.0 – 5.0/boe

2020 Ebitda expected >€2.8 bn and CFFO >€2.2 bn

2020-2022 net capex to average €1.0 - 1.2 bn p.a. including solar PV acquisition

Asset rotation to maintain a strong balance sheet

24 | Capital Markets Day - February 2020 | See appendix for more information on macro assumptions and plan sensitivities. 2 Corresponds to equity capex net of potential divestments.

Financial takeaways

Growth supported by strong financial discipline

CFFO (€ bn) 3 O 2020E 2025E 2015

Superior growth from highly competitive portfolio

Committed to a disciplined capital allocation and solid financial position

OB

Upstream Update

2019: successfully executing

our upstream strategy

WI production 4x higher than 5 years ago

Rovuma LNG and Bacalhau first phases to be sanctioned soon

27 | Capital Markets Day – February 2020 | operated assets, on a working interest basis. Industry average: c.18 kgCO3e/boe (source: IOGP 2018).

Top tier projects to deliver unparallel growth

WI production (kboepd)

galp

Lula & Iracema A unique cash generation case ...

...with further potential to maximise extraction

Robust contribution from high quality projects

Angola Kaombo South reached plateau in December 2019 Highest unit cash margin Kaombo Brazil FPSO in Berb./Sur. ramping-up above expectations Berbigão Atapu I start-up expected by 2020 and Sépia I by 2021 Sururu Atapu Sururu appraisal campaign with EWT expected by 2021 Sépia Mozambique 63% completed - on schedule and on budget Targeting first LNG in 2022 Coral FLNG

Bacalhau (ex-Carcará)

to leverage next pre-salt growth cycle

Rovuma LNG world class project

driving sustainable growth

High potential exploration assets to unlock disruptive growth

Clear and focused

value driven strategy

Current cash generators	Upcoming value levers	Potentially disruptive assets
First Brazilian pre-salt wave Lula & Iracema Berbigão / Sururu West Angola Block 32 Kaombo Block 14/14k	New Brazilian pre-salt growth cycle Bacalhau Atapu Sépia Sururu Main Area 4 Mozambique Rovuma LNG Coral FLNG	Exploration Uirapuru S. Tomé and Príncipe C-M-791 Namibia

Appendix

Macro assumptions

and sensitivities

Galp assumptions	2020 - 2022E
Brent price (\$/bbl)	65 (2020) 70 (2021-22)
Galp refining margin (\$/boe)	4.0 - 5.0
EUR:USD	1.15

		Ebitda	CFFO	FCF1
Sensitivities (€ m)	Change	2020 – 22E	2020 - 22E	2020 - 22E
Brent price	\$5/bbl	185 – 195	90 - 100	70 - 80
Refining margin	\$1/boe	100 - 110	70 – 100	70 – 100
EUR:USD	0.05	(120) – (130)	(70) – (80)	(25) - (40)

2019 results

supported by operational performance

Profit & Loss (€ m)

	2018	2019	2019 (w/o IFRS16)		Var. YoY
RCA Fhitda	2,218	2,381	2,192	163	7%
FSP	1,440	1,751	1,616	311	77%
R&M	610	415	364	(195)	(32%)
G&P	137	189	189	53	39%
RCA Fhit	1,518	1,387	1,332	(131)	(9%)
Associates	137	136	136	(2)	(1%)
Financial results	(70)	(54)	63	(16)	(23%)
Taxes	(726)	(758)	(760)	32	4%
Non-controlling interests	(151)	(150)	(166)	(2)	(1%)
RCA Net Income	707	560	604	(147)	(21%)
IFRS Net Income	741	389	433	(352)	(47%)

Balance sheet (€ m)

	Dec. 18	1 Dec. 19 -	YoY
Net fixed assets	7,340	7,358	18
Rights of use (IFRS 16)	-	1,167	1,167
Working capital	814	952	138
Loan to Sinopec	176		(176)
Other assets (liabilities)	(546)	(1,161)	(615)
Capital employed	7,784	8,316	532
Net debt	1,737	1,435	(302)
Operating leases (IFRS 16)		1,223	1,223
Equity	6,047	5,657	(389)
Equity, net debt and op. leases	7,784	8,316	532

2019 results

Reconciliation considering new business segments

As reported (€ m)			Pro-forma - new business segments (€ m)
Exploration Production	RCA Ebitda	1,751		RCA Ebitda	1,751
	RCA Ebit	1,189	Upstream	RCA Ebit	1,189
	Associates	36		Associates	36
	RCA Ebitda	415		RCA Ebitda	208
Refining & Marketing	RCA Ebit	8	Refining & Midstream	RCA Ebit	(117)
	Associates	9		Associates	റ്റ് ട
	RCA Ebitda	189		RCA Ebitda	401
Gas & Power	RCA Ebit	171	Commercial	RCA Ebit	300
	Associates	92		Associates	6
			Renewables	RCA Ebitda	(5)
			& New	RCA Ebit	(5)
			Businesses	Associates	O

2020 Guidance

Operational	WI Production growth YoY	13 - 17%
	Refining system utilisation	c90%
	Conversion units utilisation	>95%
	Oil products sales to direct clients	8.8 - 9 mton
	NG and power sales to direct clients	33 - 35 TWh
	Renewable power generation1	>0.8 TWh

Note: Refining utilisation considers planned maintenance activities in Q1 (inc. HCC) and Matosinhos in 2H2O. ¹Considers already operating solar power generating capacity. Contribution in 2H2O.

		2019	2020-
Financials	RCA Ebitda	€2.4 bn	>€2.8 bn
	CFFFO	€1.9 bn	>€2.2 bn
	Net capex	€0.7 bn	€1.0 - 1.2 bn

Debt indicators

Debt indicators

	31 Dec. 2018	31 Dec. 2019
Gross debt1	3,245	2,895
Cash and equivalents	1,508	1,460
Net debt	1,737	1,435
Operating leases (IFRS 16)		1,223
Net debt to Ebitda2	0.8x	0.7x
Available credit lines	€1.4 bn	€1.2 bn
% Debt at a fixed rate	52%	40%

41 | Copital Markets Day – February 2020 | | Includes E1 bn of EMTN bonds. Platic considers the LTM Ebitida RCA (€2,381 m on 31 December 2019, orgusted for the impact from the application of IFRS 16 (€189 m on 31 December 2019).

Galp reserves and resources

Reserves (mmboe)	2018	-- 2019	Chg. - -
1P	389	404	4%
2P	755	739	(2%)
3P	റ്റുക്കുന്നു. അവലംബം കോട്ടിക്കുന്നു	982	(0%)
Contingent resources (mmboe)	2018	2019	Chg.
1C	425	498	17%
2C	1,658	1,680	1%
3C	3,671	3,394	(8%)
Prospective resources (mmboe)	2018	---- 2019	Chg. 0
Unrisked	4,303	4,530	5%
Risked	623	766	23%

42 | Copital Markets Day – February 2020 – Note: All figures are based on DeGolyer and MacNoughton report as of 31.1.2019. Reserves figures on onet enititlement basis. Contingent resources and prospective resources on a working interest basis.

E&P projects Galp's participation in key areas

Brazil		Angola		São Tomé and Príncipe
BM-S-11 Lula	9.2%	Block 14 BBLT TL Kuito	9%	Block 6	45% (oper.)
BM-S-11 Iracema	10%	Block 14k Lianzi	4.5%	Block 11	20%
BM-S-11A Berbigão	10%1	Block 32 Kaombo	5%	Block 12	20%
BM-S-11A Sururu	10%1
1.7% BM-S-11A Atapu
BM-S-8 Bacalhau	20%	Mozambique		Namibia
Bacalhau North	20%	Area 4 Coral Rovuma LNG	10%	PEL 82	40% (oper.)
BM-S-8 Guanxuma	20%			PEL 83	80% (oper.)
BM-S-24 Sépia East	2.4%
BM-S-24 Júpiter	20%
Uirapuru	14%
C-M-791	20%

Galp's Executive Committee

CEO Carlos Gomes da Silva

Over 25 years of experience in Oil & Gas and a Galp Board member since 2007. Former Board executive for more than 17 years in the energy and beverage industries.

CFO

Filipe Silva

Over 25 years of experience in the banking sector. Galp Board member since 2012. Former Deutsche Bank CEO in Portugal.

COO Upstream

Thore E. Kristiansen

Over 30 years of experience in Oil & Gas and Galp Board member since 2014. Held senior executive roles in Equinor for South America and Africa.

COO Refining & Midstream

Carlos Silva

Over 30 years of experience in the automotive, tourism and Oil & Gas industries. Galp Board member since 2012.

COO Commercial

Sofia Tenreiro

Over 18 years of experience in the personal care, telecommunications, media and technology industries. Galp board member since 2019.

COO Renewables & New Businesses

Susana Quintana-Plaza

Over 21 years of experience in the aerospace and energy sectors, having also held roles in venture capital arms. Galp Board member since 2019.

COO Infrastructure

Carlos Costa Pina

Over 20 years of experience in public senior level functions in capital markets, finance, insurance and energy law. Galp Board member since 2012.

Acronyms

S (or USD)	Dollar	ESA	Exploration and Appraisal	mmbpd	Million barrels of oil per day
%	Percentage	ESP	Exploration and Production	mmbtu	Million British Thermal Units
S	And	Ebit	Earnings before interest and taxes	mton	Million tonnes
0	At	Ebitda	Earnings before interest and taxes, depreciation and amortisation	mtpa	million tonnes per annum
€ (or EUR)	Euro	EIA	Environmental Impact Agency	MW	Megawatt
+	Plus	EMTN	Euro Medium Term Note	MWh	Megawatt-hour
V	Below	EPC	Engineering, Procurement and Construction	ND	Net debt
>	Above	eq.	Equivalent	NG	Natural Gas
1C; 2C; 3C	Contingent resources	EU	European Union	NPV	Net Present Value
1P	Proved reserves	EWT	Extended Well Test	O.W.	of which
2P	Proved and probable reserves	FCF	Free Cash Flow	Op.	Operating
SP	Proved, probable and possible reserves	FEED	Front End Engineering Design	Opex	Operational expenditure
B2B	Business to business	FID	Final Investment Decision	Oper.	Operator
B2C	Business to consumer	FLNG	Floating Liquefied Natural Gas	p.a.	Per annum
Bbl	Barrel	FOB	Free on Board	prod.	Production
BBLT	Benguela-Belize-Lobito-Tomboco	FPSO	Floating Production Storage Offloading	PV	Photovoltaic
bn	Billion	eeb	Gas and Power	O	Quarter
boe	Barrel of oil equivalent	GGND	Galp Gás Natural Distribuição, S.A. (regulated gas distribution entity)	R&M	Refining and Marketing
C.	Circa	GW	Gigawatt	RCA	Replacement Cost Adjusted
CAGR	Compound Annual Growth Rate	HCC	Hydrocracker	Ref.	Refining
Capex	Capital expenditure	hr	Hour	ROACE	Return on Average Capital Employed
CCS	Carbon capture and storage	IFRS	International Financial Reporting Standards	R/P	Reserves to Production
CEO	Chiet Executive Officer	IOGP	International Association of Oil & Gas Producers	RRR	Reserve Replacement Ratio
CFFO	Cash flow from operations	IRR	Internal Rate of Return	Sh	Share
CFO	Chief Financial Officer	kboepd	Thousand barrels of oil equivalent per day	TL	Tômbua-Lândana
Chg.	Change	kbpd	Thousand barrels of oil per day	TWh	Terawatt-hour
CO,	Carbon dioxide	kg	Kilogram	U.S.	United States of America
CO3e	Carbon dioxide equivalent	LNG	Liquefied Natural Gas	VS.	Versus
COO	Chiet Operating Officer	LT	Long term	WAG	Water Alternating Gas
DD&A	Depreciation, Depletion and Amortisation	LTM	Last twelve months	WI	Working Interest
dev.	Development	m	Million	X	Times
DPS	Dividend per share	MiFID	Markets in Financial Instruments Directive	Yr	Year
E	Estimated	mmboe	Million barrels of oil equivalent	YoY	Year on Year

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