Galp Energia

Investor Presentation • Jul 25, 2022

2Q22 RESULTS

1 2Q22 Results July25, 2022

Disclaimer

This document may include forward-looking statements, including, without limitation, regarding future results, namely cash flows, dividends, and shareholder returns; liquidity; capital and operating expenditures; performance levels, operational or environmental goals, targets or commitments and project plans, timing, and outcomes; production rates; developments of Galp's markets; and impacts of the COVID-19 pandemic on Galp's businesses and results; any of which may significantly differ depending on a number of factors, including supply and demand for oil, gas, petroleum products, power and other market factors affecting them; the outcome of government policies and actions, including actions taken to address COVID-19 and to maintain the functioning of national and international economies and markets; the impacts of the COVID-19 pandemic on people and economies; the impact of Galp's actions to protect the health and safety of its employees, customers, suppliers and communities; actions of Galp's competitors and commercial counterparties; the ability to access short- and long-term debt markets on a timely and affordable basis; the actions of consumers; other legal and political factors, including changes in law and regulations and obtaining necessary permits; unexpected operating events or technical difficulties; the outcome of commercial negotiations, including negotiations with governments and private entities; and other factors discussed in Galp's Management Report & Accounts filed with the Portuguese Securities Market Commission (CMVM) for the year ended December 31, 2021 and available on our website at galp.com. This document may also contain statements regarding the perspectives, objectives, and goals of Galp, namely concerning ESG (Environmental, Social & Governance) objectives, including with respect to energy transition, carbon intensity reduction or carbon neutrality. An ambition expresses an outcome desired or intended by Galp, it being specified that the means to be deployed may not depend solely on Galp. Galp's business plans and budgets include investments that will accelerate the decarbonization of the Company over the next decade. These business plans and budgets will evolve over time to reflect its progress towards the 2050 Net Zero Emissions target. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements. Forward-looking statements express future expectations that are based on management's expectations and assumptions as of the date they are disclosed and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such those statements. Accordingly, neither Galp nor any other person can assure that its future results, performance or events will meet those expectations, nor assume any responsibility for the accuracy and completeness of the forward-looking statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Galp to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections, and assumptions. These forward-looking statements may generally be identified by the use of the future, gerund or conditional tense or the use of terms and phrases such as "aim", "ambition", "anticipate", "believe", "consider", "could", "develop", "envision", "estimate", "expect", "goals", "intend", "may'', "objectives", "outlook", "plan", "potential", "probably", "project", "pursue", "risks", "schedule", "seek", "should", "target", "think", "will" or the negative of these terms and similar terminology.

Financial information by business segment is reported in accordance with the Galp's management reporting policies and shows internal segment information that is used to manage and measure the Group's performance. In addition to IFRS measures, certain alternative performance measures are presented, such as performance measures adjusted for special items (adjusted operational cash flow, adjusted earnings before interest, taxes, depreciation and amortisation, adjusted earnings before interest and taxes, and adjusted net income), return on equity (ROE), return on average capital employed (ROACE), investment return rate (IRR), equity investment return rate (eIRR), gearing ratio, cash flow from operations and free cash flow. These indicators are meant to facilitate the analysis of the financial performance of Galp and comparison of results and cash flow among periods. In addition, the results are also measured in accordance with the replacement cost method, adjusted for special items. This method is used to assess the performance of each business segment and facilitate the comparability of the segments' performance with those of its competitors. This document also contains non-financial performance indicators, according to applicable legislation, including a carbon intensity indicator for energy products sold by Galp, that measures the amount of greenhouse gas emissions of those products, from their production to their end use, per unit of energy delivered. This indicator covers the direct GHG emissions of production and processing facilities (scope 1) and their indirect emissions associated with energy purchased (scope 2), as well as the emissions associated with the use of products by Galp's costumers (scope 3). The same emissions are considered for products purchased from third parties and sold or transformed by Galp. For a complete definition of scopes 1, 2 and 3 and the methodology used by Galp for this indicator please refer to Galp's website at galp.com. This document may include data and information from sources that are publicly available. This document may also include data and information provided by third parties, including Wood Mackenzie, Rystad and market analysts, which are not publicly available. Such data and information should not be interpreted as advice and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by those third parties in writing. To the fullest extent permitted by law, those third parties accept no responsibility for your use of such data and information except as specified in a written agreement you may have entered into with those third parties for the provision of such data and information.

Galp and its respective representatives, agents, employees or advisers 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 document to reflect any change in events, conditions or circumstances. This document does not constitute investment advice nor forms 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 Galp or any of its subsidiaries or affiliates in any jurisdiction or an inducement to engage in any investment activity in any jurisdiction.

Recent developments

2Q22 overview

01

3 2Q22 Results

2Q22 highlights

Strong performance from successful capture of current market environment

Significant OCF growth across all business segments

Working capital build (macro) partially offset by reversal of gas hedges

Net debt decrease with leverage ratio < 1x

2Q22: Upstream

Robust contribution despite increased maintenance activities

120kboepd WI Production -7% YoY

111 \$/bbl Oil realisations1 Gas

52 \$/boe realisations1

Ebitda (€m)

Quarter highlights

Production reflecting higher concentration of maintenance

Coral Sul FLNG sequential start up of process units with first cargo expected in 4Q22

São Tome and Principe: Safely drilled Jaca well and analysing acquired data

Outlook

Keeping FY22 production guidance

Namibia PEL83 targeting first well in 2023/24

Rig secured for Bacalhau North appraisal and expand drilling capacity

2Q22: Commercial

+27% YTD

Ongoing recovery trend despite price environment

1.9 mton

Oil products sales +22% YoY

1.5k

EV charging points

Ebitda (€m)

Quarter highlights

Oil volumes sold supported by demand gradual recovery

Increasing discount campaigns to reduce impact of price environment on clients

Convenience contribution up >25% YoY

Outlook

3Q22 volumes to continue to benefit from seasonal effects although pressured by high commodity prices

Expanding EV charging network, targeting 2k points by YE22

Establishing partnerships for SAF supply to Portuguese airports

2Q22: Industrial & Energy Management

Refining performance driving increased contribution

22.3 \$/boe

Refining margin (inc. energy and CO2 costs)

23 mboe ~100 %

Raw materials processed High conversion utilisation

Ebitda1 (€m)

Quarter highlights

Continually improving operational and safety performance

System 1st quartile availability maximising refinery contribution

LNG sourcing restrictions limiting gas trading contribution

Oil supply pricing time lag impact given continued commodities price hike

Outlook

High products' cracks environment likely to persist during the summer

FY22 refining throughput at c.90 mboe despite planned maintenance in 4Q22

Progress on maturing HVO project

Advancing on 100 MW electrolyser project

2Q22: Renewables & New Businesses

Strong performance supported by increased renewable installed capacity

687 GWh

Renewable generation

1.2 GW Capacity under operation +25% YoY

+45% YoY

Pro-forma Ebitda1 (€m)

Quarter highlights

Strong generation increase QoQ mostly supported by seasonality

Installed capacity increased by 150 MWp (Spain) and high operational availability

Progressing pipeline capacity towards Ready to Build (RTB) status

Outlook

Keeping 1.4 GW installed capacity target at YE22 with new projects online by 4Q22

Licencing and development permits still slow

Continuing to develop battery value chain opportunities

¹ Pro-forma considers all renewables businesses as if they are consolidated according to Galp's equity stakes.

Acquiring full ownership of solar Titan JV

to further support growth and value enhancement options

Acquisition of Cobra's 25% stake in Titan JV for €140 m

Adjusting pipeline by selectively targeting higher return solar PV projects

Titan key data

1.15 GW Operating solar capacity

1.6 GW Under development

Revisiting EPC scope to optimise design and performance

Enabling asset and energy management additional flexibility €220 ^m Net debt

€200 ^m LTM Ebitda

Executing our distinctive investment proposition

to thrive through the energy transition

Growth from established businesses

Delivering on Coral start-up and executing Bacalhau I project

Successfully progressing on Industrial, Commercial and Digital transformation

Growth from low carbon businesses

Ensuring operating capacity build up whilst expanding portfolio

Advancing with green hydrogen and battery value chain projects

Competitive shareholder distribution

Share buyback €150 m programme related to 2021 started in May, to be completed by YE

2022 interim dividend expected in September (€0.26/sh)

Financial overview

2Q22 results

02

11 2Q22 Results

€1,244 ^m 2Q22 Group RCA Ebitda

€964 ^m 2Q22 Group OCF

€244 ^m 2Q22 Group net capex

2Q22: Strong operational results

across all business units

Upstream	878	597	133
High cash contribution from	€	€	€
increased oil & gas realisations	m	m	m
and despite higher maintenance	RCA Ebitda1	OCF	Net capex2
Commercial Contribution reflecting seasonal demand and gradual recovery	97 € m RCA Ebitda	91 € m OCF	18 € m Net capex2
Industrial & EM Strong refining performance, partially offset by hedging, sourcing restrictions and lag in oil supply pricing formulas	283 € m RCA Ebitda3	288 € m OCF	16 € m Net capex2
Renewables pro-forma4	62	62	51
Strong results benefiting from	€	€	€
seasonality and new capacity	m	m	m
online	RCA Ebitda	OCF	Net capex2

¹ Includes c.€-50 m in Brent hedges. 2 Capex net of divestments, economic perspective. 3 Includes c.€-100 m in realised refining margin hedges 4 Pro-forma considers all renewable projects as if they were consolidated according to Galp's equity stakes.

2Q22: RCA Ebitda of €1.2 bn

driven by favourable macro conditions

RCA Ebit reflecting non-cash impairment of €85 m related with exploration assets in Brazil

Associates up YoY reflecting higher contribution from renewables

Mark-to-market1 of €-331 m including Q1 related with Upstream and Refining derivatives

2Q22 P&L (€ m)

¹ Replacement Cost Adjusted figures include mark-to-market swings related with the fair value accounting of Upstream and Refining derivatives. Mark-to-market swings related with derivative hedges to cover client positions, which have no direct translation into operating results, are registered as special items.

Strong operational cash generation

supporting deleverage

Strong OCF supported by Upstream and Refining activities

Macro led working capital build partially offset by c. €200 m roll off in natural gas derivatives exposure

Strong FCF generation of €488 m enabling net debt reduction considering distributions of €247 m 1

Net debt to RCA Ebitda at 0.7x (0.5x if excluding margin accounts effects)

2022 full year outlook

Adjusting guidance to reflect 1H22 performance and macro outlook

2H22 assumptions

consolidation from 21 July) Brent c.\$90/bbl | Refining margin c.\$15/boe ^| Solar captured price c.€130/MWh | EUR:USD 1.06

Upstream

Ebitda of c.€3 bn, with FY22 WI production guidance unchanged

Commercial

Keeping guidance of c.€300 m Ebitda, despite price environment pressure

Industrial & EM

Ebitda >€700 m, from stronger refining, although limited by gas sourcing restrictions and lag in oil pricing formulas

Renewables & New Businesses

Ebitda of c.€60 m (considering Titan

Expected distributions related to 2022 fiscal year

1/3 OCF Total distributions (Base dividend + Buybacks)

Net Debt to Ebitda YE22 well below 1x

€0.52/sh Base dividend (+4% YoY)

+

>€0.5 bn Buybacks (based on c.€2.9 bn OCF)

03

galp.com

Macro assumptions

and sensitivities

Macro assumptions	2H22
Brent price	c.\$90/bbl
Galp refining margin	c.\$15/boe
Solar captured price	c.130
EUR:USD	c.1.06

2022 sensitivities (€ m)	Change	Ebitda	OCF
Brent price	\$5/bbl	160	90
Galp refining margin	\$1/boe	75	65
EUR:USD	0.05	90	60

Key guidance for 2022

Operational indicators (no changes)

Upstream
WI production	kboepd	Flat YoY
Upstream production costs	\$/boe	<3
Commercial
Oil products sales to direct clients	mton	c.7.0
EV charging points	-	2k
Industrial & Energy Management
Sines refining throughput	mboe	c.90
Sines refining cash costs	\$/boe	c.2.0
Renewables
Renewable generation capacity by YE (@100%)	GW	1.4
Renewable generation (@100%)	TWh	2

Financial indicators

RCA Ebitda	€ bn	c.4.0
Upstream	€ bn	c.3.0
Commercial	€ m	c.300
Industrial & Energy Management	€ m	>700
Renewables	€ m	c.60
OCF	€ bn	c.2.9
Upstream	€ bn	c.1.9
Commercial	€ m	c.230
Industrial & Energy Management	€ m	>700
Renewables	€ m	c.50
Net capex	€ bn	c.1.0
Net debt to RCA Ebitda by YE	-	<1

Q&A

19 2Q22 Results

galp.com