2016 Results. February 28th, Conference call and webcast

Transcription

1 Results February 28th, 2017 Conference call and webcast Date: Tuesday, February 28th, 2017, 15:00 CET 14:00 UK/Lisbon Webcast: Phone dialin number: +44 (0) Phone Replay dialin number: +44 (0) (until March 7th, 2017) Access code: EDP Renováveis, S.A. Head office: Plaza de la Gesta, Oviedo, Spain

2 Table of contents Highlights Consolidated Financial Statements Asset Base Capital Expenditures and PP&E Operating Performance Financial Performance CashFlow Net Debt and Institutional Partnership Liability Business Platforms Quarterly Data 17 Income Statements Annex Equity Consolidated & Noncontrolling Interest (MW) Remuneration Frameworks Sustainability Highlights Share Performance & Shareholder Structure 26

3 Highlights Installed Capacity (MW) EBITDA MW Other equity consolidated EBITDA MW + Equity Consolidated Operating Data EBITDA MW metrics Load Factor (%) Output (GWh) Avg. Electricity Price ( /MWh) Consolidated Income Statement ( m) Revenues EBITDA EBITDA/Revenues EBIT Net Financial Expenses Share of profit of associates Noncontrolling interests Net Profit (Equity holders of EDPR) CashFlow ( m) Operating CashFlow Retained CashFlow Net Investments Balance Sheet ( m) PP&E (net) Equity Net Debt Institutional Partnership Liabilities Employees Total Results Highlights 10, , ,408 9, % 29% +0.4pp 24,473 21, % (5%) 1,651 1,547 +7% 1,171 1,142 +3% 71% 74% (3pp) (2%) (350) (285) +23% (0.2) (2) % (66%) % % (87%) YTD 13,437 12, % 7,573 6, % 2,755 3,707 (26%) 1,520 1, % YTD 1,083 1,018 +6% EDPR managed, by Dec16, a global portfolio of 10.4 GW spread over 11 countries, of which 10.1 GW fully consolidated and 356 MW equity consolidated (equity stakes in Spain and US). Over the last year, EDPR added new820mwtoitsinstalledcapacity(excluding50mwdeconsolidatedinpoland),ofwhich429mwintheus. EDPR produced 24.5 TWh of clean electricity (+14% YoY), avoiding 20.1 mt of CO2 emissions. The increase in production benefitted mainly from the capacity additions(+11% YoY average capacity) with above average wind resource. Reflecting the low wind resource in the 4Q16, the achieved load factor in the year was 4% below the longterm average(p50). The average selling price in totalled 61/MWh (5% YoY), reflecting a different mix of wind farms in operation (higher production vs prices). Revenues totalled 1,651m (+7%; + 104m YoY) and Core Opex per average MW in operation decreased 5% YoY, as a consequence of EDPR s strict control over costs and O&M programs in place. In reported EBITDA totalled 1,171m (+3% YoY), with 29m impact from lower than average wind resource (96% wind factor; 29m in FY16 of which 22m in 4Q16), and with YoY comparison impacted by nonrecurring net gains in of + 82m (e.g. gain subsequent to the control acquisition of certain ENEOP assets and writeoffs). In writeoffs and nonrecurring items amounted to 21m. Adjusted by nonrecurrent events, in, EBITDA increased by 12% YoY, to 1,192m. EBIT decreased to 564m (2% YoY), as a result of the EBITDA performance(+3% YoY) and the 8% YoY increase in depreciation and amortization costs including impairments and net of government grants. Impairments and provisions for contingencies amounted to 9m in. Net Financial Expenses increased by 65m YoY, amounting 350m, negatively impacted by oneoffs ( 30m) mainly related to debt prepayments/restructuring, and from discontinued hedge accounting related to Spanish operations ( 14m), while YoY comparison is also impacted by ENEOP consolidation ( 20m). Net interest costs decreased to 179m(6% YoY) benefitting from the lower cost of debt in the period, after renegotiations with EDP and others. Despite the challenging year EDPR was able to deliver a robust cashflow generation. Following EBITDA cashgeneration, income tax of the period, interests, banking and derivatives expenses and minority dividends/interest payments, Retained CashFlow increased 13% to 698m. In terms of accounts at the bottom line, Net Profit summed 56m, while Adjusted Net Profit decreased 4% YoY to 104m(nonrecurring items: + 59m; 47m, including EBITDA nonrecurring items, impairments and provisions and oneoffs at financial expenses). From 2017 onwards, based on an independent technical assessment and in line with industry trends, EDPR will apply a 30years depreciation schedule (vs 25 years in ).Such change will havean impact of 6570m at the bottomline from 2017 onwards (EDPR s guidance, announced at the EDP Group Investor day in May, for the Adjusted Net Profit 20 CAGR of +16%, 108m in, excluded this expected impact). The Board of Directors will propose a dividend distribution in the ASM of 44m, or 0.05/share. 2

4 Consolidated Financial Statements Note: The financial statements presented in this document are nonaudited. Consolidated Income Statement ( m) Electricity sales and other Income from Institutional Partnerships Revenues Other operating income Operating Costs Supplies and services Personnel costs Other operating costs EBITDA EBITDA/Revenues Provisions Depreciation and amortisation Amortisation of deferred income (government grants) EBIT Financial income/(expense) Share of profit of associates PreTax Profit Income taxes Profit of the period Net Profit (Equity holders of EDPR) Noncontrolling interests Assets ( m) 1, , % Property, plant and equipment, net 13, % Intangible assets and goodwill, net 1,596 1, , % Financial investments, net 348 Deferred tax assets (67%) Inventories 24 (533.6) (566.3) (6%) Accounts receivable trade, net 266 (304.7) (292.7) +4% Accounts receivable other, net 338 (93.9) (84.3) +11% Assets held for sale (134.9) (189.3) (29%) Collateral deposits 46 Cash and cash equivalents 603 1, , % Total Assets 16,734 71% 74% (3pp) Equity ( m) (4.7) 0.2 (624.5) (587.5) +6% Share capital + share premium 4, (3%) Reserves and retained earnings 1,155 Net Profit (Equity holders of EDPR) (2%) Noncontrolling interests 1,448 Total Equity 7,573 (350.1) (285.5) +23% (0.2) (1.5) Liabilities ( m) (37.6) (45.3) (27%) Financial debt 3,406 4,220 Institutional partnerships 1,520 1,165 (17%) Provisions Deferred tax liabilities (28%) Deferred revenues from institutional partnerships Other liabilities 2,776 2,288 (66%) Total Liabilities 9,161 8, % Total Equity and Liabilities 16,734 15,736 12,612 1, ,736 4, ,834 3

5 Asset Base Installed Capacity (MW) EBITDA MW Spain Portugal France Belgium Poland Romania Italy United States Canada Mexico 1 Total EBITDA MW Equity Consolidated (MW) Spain United States Total Equity Consolidated Total EBITDA MW + Equity Consolidated EBITDA MW Spain Portugal France Belgium Poland Romania Italy US Canada EDPR (1) 200 MW in Mexico to start full consolidation in 2017 Assets Average Age & Useful Life YoY +2,194 +1, ,986 +4, , , , Under Construc AsofDec16EDPRmanagedaportfolioof10.4GWspreadover 11 countries,ofwhich 5.1GW in (2.4 GW in Spain, 1.5 GW in RoE and 1.3 GW in Portugal), 5.0 GW in andtheremaining0.2gwin. From the global portfolio of 10,408 MW, 10,325 MW are related to wind onshore technology, whiletheremaining82mwcomprisesolarpvpowerplantsinromania(50mw),us(30mw) and Portugal(2 MW). In EDPR installed 820MW, of which 629MW in NorthAmerica, 120MW in and 72 MW in. In EDPR completed 3 wind farms in the US, Hidalgo (250 MW; Texas),TimberRoadIII(101MW;Ohio)andJericho(78MW;NewYork)andinMexicothe200 MW Eólica de Coahuila wind farm, representing EDPR s first project in the country and which full consolidation is expected to start from 2017 onwards. In was completed the 120 MW Baixa do Feijão wind farm and 72 MW was installed in (44 MW in Italy, 24 MW in Franceand4MWinPortugal). In, the 22 net MW additions include the deconsolidation (in the 1Q16) of 50 MW, followingthecompletion ofthecross saleoftwo wind farms inpoland, by which EDPR sold its 60% share in a 50MW wind farm and bought the remaining 35% share in a 54MW wind farm (already fully accounted as EBITDA MW). As of Dec16, EDPR had 248 MW of wind onshore under construction, comprising JAU & Aventura 127 MW projects in, Meadow Lake V 100 MW project in US (Indiana) and 21 MWin(18MWinFranceand3MWofSolarPVinPortugal). EDPR s portfolio, considering EBITDA MW as of Dec16, had an average age of 6.5 years. In detail, EDPR s portfolio had an average age of 7.5 years in, 6.0 years in and 2.9 years in. In EDPR s depreciation and amortization schedule considered 25 yearsofusefullifeforwindandsolarassets. As of Dec16, EDPR s EBITDA installed capacity with no exposure to merchant prices totalled 91%, being the remaining 9% of EBITDA MW related to wind farms located in the US, Spain and Poland. In the US, EDPR exposure to the spot market was 585 MW, with the remaining capacity installed in the country being remunerated under longterm contracts (PPAs/hedges). In Spain, and in accordance with the Royal Decree 413/2014 approved in Jun14, EDPR s installed capacity without incentive represented 2% of EDPR EBITDA MW portfolio. The remaining capacity installed in Spain is remunerated based on a standard return. In Poland 18% of installed capacity is exposure to market prices. EDPR production exposed to merchant market is managed within EDPR s risk management strategy and hedging policies, targeting a residual exposure to spot prices. 4

6 Capital Expenditures and PP&E Investments ( m) Other Total Capex Financial investments/(divestments) Government grant Asset rotation proceeds Net Investments Property, Plant & Equipment PP&E ( m) PP&E (net) () PP&E assets under construction (=) PP&E existing assets (net) (+) Accumulated Depreciation () Government Grants (=) Invested capital on existing assets Capex per Platform 5% 13% % (28%) (52) % (22%) (16) % , % (80%) (0.8) (1.5) (44%) (963.5) (338.5) +185% , ,520 4, ,692 (87%) (623) 1,243 4, Invested Capital in existing assets 2% (125) +1 (625) 12, (326) 11,369 +1,150 14,853 Spain 21% ,839 (1) In, Capex totalled 1,029m, reflecting the capacity added in the period, the capacity under construction and enhancements in capacity already in operation. Out of the 1,029m, 841m were in, 132m were related to growth in (mainly Rest of ) and 57m in. Capex in represented 82% of EDPR total capex in the period, reflecting EDPR s growth strategy based on markets with stable regulatory frameworks and longterms contracts, providing visibility over future returns. In the period, represented 13% of the total capex and represented 5%. In, occurred the financial settlement of the asset rotation transactions. Transactions scope comprised US assets with Axium, and an assets with EFG Hermes and CTG(Italian assets), representing a total amount of 963m. Financial investments in the period totalled 31m, mainly reflecting EDPR investments in projects developed in partnership. Following the asset rotation settlements, total net investments in period, calculated as total capex plus financial investments and net of government grants and proceeds from asset rotation, was 96m. In, Net PP&E totalled 13.4bn, higher vs, mainly impacted by capacity additions in and. PP&E includes total investments, capex(gross of government grants) and adjustments from Purchase Price Allocation (resulting from M&A transactions) incurred with existing assets, assets under construction or under development. PP&E in existing assets (net), adjusted for assets under construction, reached 12.5bn. Invested capital on existing assets, adjusted for assets under construction, gross of depreciation and net of government grants received, amounted to 16.7bn by Dec16, increasing by 1.8bn vs Dec15. As of Dec16, represented 50% of Invested Capital in existing assets and 2%. Out of the 48% of Invested Capital in existing an assets, 21% was related to Spain, 11%toPortugaland16%toRestof. 1.0bn 82% North America 50% 16.7bn RoE 16% Portugal 11% (1) Considers EBITDA MW, with percentages calculated in euros. 5

7 Operating Performance Load Factor Achieved Load Factor vs Avg. GWh Breakdown by Remuneration 26% 26% (0.2pp) 33% 32% +1pp 35% 30% +4pp 97% 96% 107% 96% Spot US, PL& Spain w/o complement Regulated/PPA 10% 11% 90% 89% Total 30% 29% +0.4pp Electricity Generation (GWh) Total Selling Prices (per MWh) Average Selling Price Electricity Sales and Other ( m) Total Income from Institutional Partnerships ( m) Total Revenues Revenues ( m) Revenues per avg. MW in operation ( k) 11,230 12, , $46.4 R$ , , ,062 11, , $51.0 R$ , , % +13% +200% +14% (2%) (9%) (42%) (5%) +10% +2% +61% +8% +0.1% +7% (4%) In EDPR reacheda30%load factor (vs 29%in ),on theback ofcapacity additions with above average load factor. Reflecting the low wind resource in the 4Q16, the achieve load factor in the year was 4% below the longterm average. In, EDPR reached 26% load factor (stable YoY), on the back of higher wind resource in Portugal despite lower wind conditions in RoE. In Spain, average load factor stood at 96% of P50 with very low wind conditions in the 4Q16, and offsetting 9M16 positive accumulated performance. In, EDPR achieved a33%loadfactor(vs32%in)reflectingtheyoyhigherwindresourceinthe9m16.in, EDPR reached a 35% load factor (vs 30% in ) supported by a higher wind resource in 4Q16 YoY and propelled by new capacity additions mix. EDPR produced 24.5 TWh of renewable energy in, +14% YoY, benefitting from the capacity addedovertheyearwithaboveaverageloadfactor.fromthe24.5twhgeneratedin,89% was sold under regulated frameworks schemes or PPAs. EDPR s average selling price in was 61/MWh (vs 64/MWh in ), mainly as a result of capacity additions mix (production vs price) and lower YoY prices in some countries. In, the realised price decreased 2% YoY, mainly due to lower realized price in Portugal (7% YoY; different assets mix) and lower pricing in Poland (15% YoY), due to green certificates price evolution and forex. In, the average selling price decreased to $46/MWh (9% YoY), due to a lower selling price in the US, on the back of new capacity additions mix (production vs price), the expiration of a PPA(1Q16) and with benefitting from sale of 2014 REC stock. In, the average price decreased YoY to R$216/MWh mainly driven by a different mixofanewwindfarminoperation(productionvsprice). In electricity sales increased by 8% YoY to 1,453m, hampered by lower wind resource vs P50. Electricity sales in increased by 10% YoY to 913m, with the higher output compensating the lower price effect. In, electricity sales increased 2% YoY in Euros, driven by a higher output (+13% YoY). Income from Institutional Partnerships in Euros stood stable YoY at 198m on the back of new institutional Tax Equity financing structures and with YoY comparison impacted by oneoff event ($33m), from an update of tax equity investors postflip residual interest accretion. In, electricity sales increased 61% YoY (in Euros) to 34m, benefitting from the higher electricity generation in the period. Allinall,EDPRrevenuesincreasedby7%YoYto 1,651mandrevenuesperaverageMWtotalled 177k(vs 185k in ), also impacted by forex. Note: Operational Performance considers only capacity consolidated at EBITDA level 6

8 Financial Performance Revenues to EBITDA Revenues ( m) Other operating income Operating Costs Supplies and services (S&S) Personnel costs (PC) Other operating costs EBITDA Efficiency and Profitability Ratios Revenues/Average MW in operation ( k) Core Opex (S&S + PC) /Average MW in operation ( k) Core Opex (S&S + PC) /MWh( ) EBITDA margin EBITDA/Average MW in operation ( k) EBITDA to EBIT ( m) EBITDA Provisions Depreciation and amortisation Amortisation of deferred income (government grants) EBIT % Net Financial Expenses ( m) % 1, , % Net interest costs of debt (178.6) (189.5) (6%) Institutional partnerships costs (90.3) (79.0) +14% (67%) Capitalised financial expenses % (533.6) (566.3) (6%) Forex differences 9.8 (2.7) (459%) (304.7) (292.7) +4% Other (114.0) (37.3) +205% (93.9) (84.3) +11% (134.9) (189.3) (29%) Net Financial Expenses (350.1) (285.5) +23% 1, , % % Profits of Associates % (4%) Share of profit of associates (0.2) (1.5) (88%) (5%) (8%) 71% 74% (3pp) Profit Before Taxes to Net Income ( m) % (8%) PreTax Profit (27%) % Income taxes (37.6) (45.3) (17%) 1, , % Profit of the period (28%) (4.7) 0.2 (624.5) (587.5) +6% Noncontrolling interests % (3%) (2%) Net Profit (Equity holders of EDPR) (66%) In, EDPR revenues increased 7% YoY to 1,651m (+ 104m YoY), mainly due to higher MW in operation (+ 142m YoY), higher load factor (+ 24m YoY), and negatively impacted by lower selling price( 26m YoY) and by update of TEI s postflip residual interest accretion ( 30m YoY). Other operating income amounted 54m, benefitting from a capital gain related to Polish wind farm crosssale(+ 7m) and with YoY comparison impacted by the gain ( 125m; ) subsequent to the control acquisition of certain assets of ENEOP. Operating Costs (Opex) totalled 534m, with higher capacity in operation. In detail, Core Opex, defined by Supplies and services(including O&M activities) and Personnel costs,totalled 399m(+6%YoY),withCoreOpexperAvg.MWandperMWhdecreasingby5% and 8% respectively, reflecting strict control over costs and EDPR s asset management strategy. Other operating costs(including taxes and rents to public authorities, the 7% tax over electricity sales generated in Spain and nonrecurring costs) decreased by 54m to 135m, mainly explained by lower writeoffs in the period( 61m YoY). In, EBITDA increased 3% YoY to 1,171m (71% EBITDA margin) with 29m from the lower wind resource( 22m in 4Q16). If adjusted by oneoffs, EBITDA increased 12% YoY andebitdapermwinoperationincreasedto 128k(+1%YoY). Operating income (EBIT) decreased 2% YoY to 564m, on the back of 8% increase in depreciation and amortization costs(including provisions, impairments and net of government grants), due to capacity additions in the period. In impairments and provisions for contingencies amounted to 9m. At the financing level, Net Financial Expenses increased to 350m (vs 285m in ). Net interest costs decreased 6% YoY, benefitting from the lower cost of debt in the period after renegotiations with EDP and others. Institutional Partnership costs in were 11m higher YoY, reflecting mainly new tax equity deals, while capitalized expenses remained flat. Forex differences and derivatives had a positive impact of 9m in the period. Other financial expenses increased by 76m YoY, including 30m oneoffs mainly from debt prepayment/restructuring, and 14m from discontinued hedge accounting related to Spanish operations, while YoY comparison is also impacted by ENEOP consolidation ( includes interest income from ENEOP). In the period, PreTax Profit summed 214m, with income taxes totalling 38m and reflecting an effective income tax rate of 18%. Noncontrolling interests amounted to 120m, increasing by 41mYoYmainlyduetoEDPRsettlementofassetrotationandCTGdeals,executedinNorth AmericawithAxiumandinwithEFGHermesandCTG. All in all, Net Profit totalled 56m and Adjusted Net Profit 104m if adjusted for nonrecurring events (oneoffs: + 59m; 47m), which are mainly explained in by the gain subsequent to the control acquisition of certain assets from ENEOP, update of TEI s postflip residual interest accretion and writeoffs, and in by debt prepayment/restructuring, write offs, provisions and others. 7

9 CashFlow CashFlow EBITDA Current income tax Net interest costs Share of profit of associates FFO (Funds From Operations) Net interest costs Share of profit of associates Income from institutional partnerships Noncash items adjustments Changes in working capital Operating CashFlow Capex Financial (investments) divestments Changes in working capital related to PP&E suppliers Government grants Net Operating CashFlow Sale of noncontrolling interests and shareholders' loans Proceeds from institutional partnerships Payments to institutional partnerships Net interest costs (post capitalisation) Dividends net and other capital distributions Forex & others Decrease / (Increase) in Net Debt 1,171 (50) (179) (0.2) (51) (188) (1.5) (197) (65) (127) +3% (3%) (5%) (88%) % (198) (12) (43) (5%) (88%) +0.1% (82%) (66%) (1,029) (903) +14% (31) (157) (80%) (61%) (44%) (181) 1, % % (172) (174) (1%) (156) (165) (6%) (146) (115) +26% (207) (277) (25%) 952 1,142 (425) +24% (330) (45%) In, EDPR generated Operating CashFlow of 869m (+24% YoY), reflecting EBITDA performance and reinforcing the generation capabilities of its assets in operation. The key items that explain cashflow evolution to changes in Net Debt are: Operating CashFlow, which is the EBITDA net of income tax and adjusted by noncash items (namely income from US institutional partnerships) and net of changes in working capital, increased 24% YoY to 869m; Capital expenditures with capacity additions, ongoing construction and development works totalled 1,029m. Other net investing activities amounted 20m, mostly reflecting EDPR investments in projects developed in partnership and equipment suppliers invoices already bookedbutnotyetpaid. Pursuing its Asset Rotation strategy, in occurred the settlement of Axium transaction (signed in Nov15; $308m), EFG Hermes deal(signed in Apr16; 550m) and the settlement of an transactions with CTG (signed in Dec15; 363m), for a combined amount of 1,189m. +1,171 From EBITDA to Retained CashFlow (RCF) to Debt and TEI reduction ( m) (9) (50) (294) (119) EBITDALT receivables Cash Income Interests, TEI Minorities Dividends adjustments & noncash Taxes & derivatives deriv.& & interests pay. & LT receivables items TEI to costs Minorities +13% +698 RCF +1,189 (1,050) (44) (198) +597 Sale Asset of Cash Dividends Forex FX & Net Net Debt Debt& minorities Rotation Investments Investm. to (EDPR) & Other & TEI TEI & CTG shareh. reduction Redution Proceeds from new institutional tax equity financing structure totalled 624m, related to the 199 MW Waverly wind farm tax equity signed in the 4Q15 ($240m) along with $457m from projects (Hidalgo, Timber Road III and Jericho). Payments to institutional partnerships totalled 172m contributing to the reduction of Institutional Partnership liability. Total net dividends and other capital distributions paid to minorities amounted to 146m (including 44m to EDPR shareholders). In the period, Forex & Other had a negative impact increasing NetDebtby 207m. The Retained Cash Flow, which captures the cash generated by operations to reinvest, distribute dividends and amortize debt, increased 13% to 698m. In Dec16, Net Debt & Institutional Partnership Liability decreased by 597m. 8

10 Net Debt and Institutional Partnership Liability Net Debt ( m) Dec16: Financial Debt by Currency Dec16: Financial Debt by Type Nominal Financial Debt + Accrued interests on Debt Collateral deposits associated with Debt Total Financial Debt 3,406 (46) 3,360 4,220 (814) (73) +27 4,147 (787) Other 10% Variable 10% Cash and cash equivalents Loans to EDP Group related companies and cash pooling Cash & Equivalents Net Debt , , (1) +165 (952) USD 41% EUR 49% Fixed 90% Average Debt ( m) Average nominal financial debt Average net debt Net Debt Breakdown by Assets ( m) Net debt related to assets in operation Net debt related to assets under construction & develop. Institutional Partnership ( m) (1) 3,996 3,367 2, Institutional Partnership Liability 1,520 % 4,145 3,539 3, ,165 (3.6%) (4.9%) (1,259) Dec16: Average Interest Rate Cost 4.3% 4.0% Dec15 Dec16 Dec16: Financial Debt by Maturity 54% 13% 17% 13% 3% As of Dec16, EDPR's Net Debt totalled 2.8bn, lower by 952m from Dec15, mainly reflecting the proceeds of the sale of minority stakes( 1,189m cashed in ), the cash flow generated bytheassetsandtheinvestmentsdoneintheperiod. In, EDPR signed a project finance transaction for its first wind farm in Mexico. The longterm contracted debt facility amounted to $278m. InDec16,77%ofEDPR sfinancialdebtwasfundedthroughlongtermloanswithedpgroup EDPR s main shareholder while loans with financial institutions represented 23%. Liabilities referred to Institutional Partnerships totalled 1,520m (+ 355m vs Dec15), reflecting the benefits captured by the tax equity partners during the period and the establishment of new institutional Tax Equity financing structures. As of Dec16, 49% of EDPR's financial debt was Euro denominated, 41% was funded in US dollars, related to the company's investment in the US, and the remaining 10% was mostly related with debt in Polish Zloty and ian Real. EDPR continues to follow a longterm fixed rate funding strategy, matching the operating cashflow profile with its financial costs and therefore mitigating interest rate risk. Accordingly, as of Dec16, 90% of EDPR s financial debt had a fixed interest rate and only 3% had maturity schedulein2017.indec16,54%ofedpr sfinancialdebthadmaturityin2018(reflectingaset of 10year loans granted by EDP in 2008; new refinancing loan already under negotiation), 13% in2019and30%in2020andbeyond. As of Dec16 the average interest rate was 4.0% (vs. 4.3% in Dec15), reflecting EDPR s 2.3bn debt restructured and early amortized since. In Dec16, EDPR early amortized $364m, bearing 7.7%, with maturity scheduled for 2018/19, which was contracted in 2009 with EDP. (1) Net of tax credits already benefited by the institutional investors and yet due to be recognised in the P&L. 9

11 Business Platforms 10

12 EDPR EU: EBITDA MW by Market EBITDA MW 388 MW Feedin Tariff 15 years 1,251 MW Feedin Tariff Auction (ENEOP) 15+7 years Portugal 71 MW PPA Market price + Green Certificate France Spain Belgium 2,194 MW Return on standard asset Italy Poland 418 MW PPA Market price + Green Certificate Romania 144 MW < 2013:market price + GC Auctions 521 MW Market price + Green Certificate Spain Portugal France Belgium Poland Romania Italy Load Factor (%) Spain Portugal France Belgium Poland Romania Italy 2,194 1, ,986 26% 28% 23% 21% 25% 25% 28% 2,194 1, ,965 26% 27% 26% 25% 28% 26% 28% (50) pp +1pp (3pp) (4pp) (3pp) (1pp) (0.2pp) See page 24 for more detail on regulation 26% 26% (0.2pp) EDPR s EBITDA consolidated installed capacity in totalled 5.0 GW by Dec16, an increase of22mwyoy.intheyearedprinstalled72mwin,ofwhich24mwinfrance,44mw in Italy and 4 MW in Portugal. The capacity decrease in Poland includes the deconsolidation of a50mwwindfarm(inthe1q16),followingthecompletionofthecrosssaleoftwowindfarms in Poland, by which EDPR sold its 60% share in a 50 MW wind farm and bought the remaining 35%shareina54MWwindfarm(alreadyaccountedasEBITDAMW). Fromthetotalof4,986MWinstalled in (EBITDA MW),4,934MWwererelated to wind onshore technology and 52 MW of solar PV (of which 50 MW in Romania and 2 MW in Portugal). In Spain, EDPR had 2.2 GW of which c.9% has no capacity complement and the remaining capacity is remunerated with a pool price with caps and floors and a capacity complement in order to reach the target return on a standard asset. In Portugal, installed capacity reached 1,251MW, representing25%ofedpr EBITDA MWportfolio in. As ofdec16, EDPR had 1.5 GW installed in Rest of ("RoE"), accounting for 31% of EBITDA MW portfolio in. In additionto its 4,986EBITDAMWin, asofdec16, EDPRhad177MWconsolidatedby equity, related to EDPR equity stakes in Spanish assets. In, EDPR reached a 26% load factor (stableyoy), on the back ofhigher wind resourcein Portugal despite lower wind conditions in RoE. In the period, EDPR delivered a load factor of 26% in Spain, lower than the expected for a normal year and above market average (+2pp) and with the 4Q16 lower wind resource offsetting the higher wind resources in both 1Q16 and 3Q16. In Portugal, EDPR accomplished a load factor of 28%, higher YoY and reflecting an above average wind resource. In France, the 23% load factor was lower vs. In Belgium, Poland and Romania, EDPR delivered load factorsof21%,25%and25%(4pp,3ppand1pplowervs,respectively),duetolowerwind resourceintheperiod.initalyloadfactorwasstableat28%. Note: Operational Performance considers only capacity consolidated at EBITDA level 11

13 Spain Production (GWh) Production w/ capacity complement (GWh) Standard Production (GWh) Above/(below) Standard Production (GWh) Production w/o capacity complement (GWh) Selling Price + Capacity Complement Realised pool price ( /MWh) Regulatory Adjustment on standard GWh ( m) Remuneration to investment ( m) Hedging gains/(losses) ( m) Electricity Sales ( m) Portugal Production (GWh) Avg. Selling Price ( /MWh) Electricity Sales ( m) France Production (GWh) Avg. Selling Price ( /MWh) Electricity Sales ( m) Note: For analysis purposes hedging results are included in electricity sales. 4,926 4,528 4, , ,847 4,438 4, ( 8.4) , % +2% +27% (3%) (24%) +2% +53% (7%) +42% 785 (1%) (0.5%) In Spain, production reached 5.0 TWh (+2% YoY), of which 92% was generated from capacity with complement. According to the RDL 413/2014 approved in Jun14, renewable assets receive pool price with caps and floors and a capacity complement ( /MW) in order to achieve the standard return. In, on the back of weather conditions and despite the higher poolpriceinthe4q16,theaveragerealisedpoolpriceintheyearwas 34/MWh(vs 45/MWh in ), leading to 22m of regulatory adjustment (baseload below regulatory floors). Additionally, EDPR accounted 26m of hedging gains until 9M16 (discontinued in 4Q16). All in all, electricity sales in theperiod totalled 375m(+2%YoY). For 2017,EDPRhedged2.5TWhat 44/MWh. In Portugal, electricity sales totalled 268m (+ 79m YoY) reflecting the increase in production to3.0twh,mainlyexplainedbytheconsolidationof613mwfromeneopinsep15(+1.0twh YoY from ENEOP). The lower average selling price (7% YoY to 88/MWh) is explained by a different mix of wind farms in operation(feedin vs auctions; old assets vs ENEOP). In France, production decreased to 777 GWh (1% YoY) impacted by the lower wind resource (23% vs 26% in ) despite the higher average installed capacity. The average selling price in was 90/MWh(stable YoY), leading to 70m of electricity sales in the period(2% YoY). (2%) Italy Production (GWh) Avg. Selling Price ( /MWh) Electricity Sales ( m) Poland Production (GWh) Avg. Selling Price ( /MWh) Electricity Sales ( m) Romania Production (GWh) Avg. Selling Price ( /MWh) Electricity Sales ( m) Belgium Production (GWh) Avg. Selling Price ( /MWh) Electricity Sales ( m) , , % (1%) +22% (0.0%) (15%) (15%) +1% +5% +6% (16%) (3%) (18%) In Italy, production in increased YoY to 258 GWh (+23% YoY), benefitting from the higher average installed capacity along with a stable load factor (28% in the ). In, average selling price decreased by 1% YoY to 117/MWh due to a different mix of wind farms in operation (auctions vs old regime). On the back of a higher production, electricity sales in summed 30m(+22% YoY). In Poland, total production remained stable at 951 GWh, with the higher average capacity in operation compensating the lower load factor realised in the period (25%, 3pp YoY). Average selling price decreased to 75/MWh, reflecting the lower green certificate price and forex translation. As a result, electricity sales in Poland decreased to 71m in (15% YoY). In Romania, production in increased to 1,143 GWh (+1% YoY). Load factor decreased 1pp YoY to 25% in the period. The average selling price increased to 76/MWh, impacted by electricity prices recovery and mix effect. As a result, in electricity sales totalled 87m (+6%YoY). In Belgium, production in decreased by 16% YoY, to 128 GWh, on the back of the lower wind resource registered in the period (21%, 4pp YoY). In, average selling price was 106/MWh (3% YoY), reflecting the PPA price structure. As a result, in electricity sales totalled 14m. 12

14 Electricity Output Average Selling Price Revenues Income Statement ( m) GWh /MWh m Revenues 10, % (2%) +10% 11, Other operating income Operating Costs Supplies and services (S&S) Personnel costs (PC) Other operating costs EBITDA EBITDA/Revenues Provisions Depreciation and amortisation Amortisation of deferred income (government grants) EBIT (281.2) (281.6) (162.0) (150.8) (30.3) (26.7) (88.8) (104.1) % 83% (4.8) (0.0) (303.2) (291.3) % (75%) (0.2%) +7% +14% (15%) (3%) (10pp) +4% (36%) (10%) Opex ratios Employees Core Opex (S&S + PC) /Average MW in operation ( k) Core Opex (S&S + PC) /MWh( ) (3%) (3%) % In, EDPR output in increased by 12% to 11.2 TWh, benefitting from capacity additions over the period along with a stable load factor (26% in ). In, an generation accounted for 46% of EDPR total output. In the period, EDPR average selling price in decreased 2% to 81/MWh, mainly driven by a lower average selling price in Portugal( 7% YoY), due to a different mix of wind farms in operation following the consolidation of 613 MW from ENEOP in Sep15, and the lower average selling price in Poland (15% YoY) on the back of green certificates price evolution and forex translation. Revenues in totalled 913m (+10% YoY or + 81m) benefiting from the higher YoY output (+12% YoY, + 91m YoY) despite lower average selling price (2% YoY, 7m YoY) and forex translation and other ( 3m YoY). The increase in EDPR an revenues was mainly the result of higher revenues in Portugal(+ 78m YoY, propelled by ENEOP consolidation). In, Other operating income totalled 35m, mainly explained by a capital gain subsequent to the sale of EDPR 60% share in a 50 MW wind farm in Poland (+ 6m) and with YoY comparison impacted by the gain ( 125m) subsequent to the control acquisition of certain assets of ENEOP accounted in. In, Operating costs totalled 281m (stable YoY) balanced with the increase in Supplies and services (+ 11m YoY) and Personnel costs (+ 4m YoY), on the back of higher capacity in operation, and mitigated by the decrease in Other operating costs( 15m YoY). In, Core Opex (defined as Supplies and Services and Personnel Costs) per average MW in operation decreased 3% YoY to 39k, reflecting EDPR strict control over costs and strong efficiency levels. In the period, Core Opex per MWh also decreased 3% YoY to 17 benefitting from the higher output in the period. All in all, EBITDA totalled 666m, reflecting an EBITDA margin of 73%. The YoY decrease in EBITDA is mainly impacted by the gain, in, subsequent to the control acquisition of certain ENEOP assets ( 125m) and by lower writeoffs ( 25m YoY). In, depreciations and amortisations (including provisions, impairments and net of amortisations of government grants) increased by 6%YoY, reflectingthehigher capacity and leadingto an EBIT of 360m. In the period, impairments and provisions for contingencies amounted to 9m. 13

15 (USD) EBITDA MW US PPA/Hedge US Merchant Canada Mexico Total EBITDA MW Load Factor (%) US West Central East Canada Average Load Factor Electricity Output (GWh) US PPA/Hedge US Merchant Canada Total GWh (1) Average Selling Price (US$/MWh) US PPA/Hedge price US Merchant price Canada Avg. Final Selling Price 4, ,861 33% 30% 38% 31% 28% 33% 10,351 2, , , ,233 32% 28% 35% 31% 27% 32% 9,282 1, , pp +3pp +2pp (1pp) +1pp +1pp +12% +23% +4% +13% Washington 101 Oregon 300 California 228 Tax Incentives MW under PTC/ITC (Tax Equity Structure) MW under cash grant flip (Tax Equity Structure) MW under cash grant Revenues (US$m) Kansas 400 EDPR US: EBITDA MW by Market Minnesota 101 Texas Iowa 401 Oklahoma Illinois , ,014 (7%) Electricity sales and other % (21%) Income from institutional partnerships (0.2%) (3%) (9%) Total Revenues % 449 Indiana Ohio 200 New York 305 PPA/Hedge Merchant 2, ,014 As of Dec16, EDPR EBITDA installed capacity in totalled 4,861 MW, of which 4,631 MW in the United States ( US ), 30 MW in Canada and 200 MW in Mexico. From the 4,631 MW installed in the US, 4,601 MW are of wind onshore technology, while 30 MW are related to a solar PV power plant. In Dec16, 4,276 GW are under longterm contracts (PPA/Hedge) or predefined remuneration scheme, representing 88% of total EBITDA installed capacity in the region. In the US, over the last 12 months, EDPR installed 429 MW of wind onshore capacity remunerated according with PPAs secured in advance and with a different revenue profile (price vs production). The YoY increase of 42 MW exposed to merchant reflects both the 8year PPA expiration of a wind farm (in the 1Q16; 200 MW) and a PPA signed in the end of last year for capacity already in operation. In, EDPR reached a load factor of 33% in the US, +1pp vs, due to new wind farms withhigherloadfactor.canadadelivereda28%loadfactorintheperiod(vs27%in). Note: Considers projects with PPAs/LT contracts already signed but not yet contributing for production EDPR output in increased 13% YoY, reaching 12.6 TWh on the back of higher installed capacity with above average load factors. In the region, the output covered with PPA/Hedge/Feedin increased by 1.1 TWh YoY, to 10.4 TWh, and the production exposed to spot prices increased by 0.4 TWh YoY, with the PPA/Hedge/Feedin production representing 83%oftheoutputintheregionduring. Reflecting capacity additions, different mix of load factors vs prices and the expiration of a PPA, the PPA/Hedge price was $48/MWh(7% YoY) and the realized merchant price decreased to $35/MWh(21% YoY). In detail, wholesale prices plus hedges were stable YoY(on a likeforlike basis) but average realized merchant price was negatively impacted by a 200 MW PPA expiration(inthe1q16)andwithbenefittingfromthesaleof2014recstock.incanada, average selling price was $109/MWh (3% YoY in US dollars) penalized by forex translation (stable YoY). All in all, the realized average selling price in the region was $46/MWh. Benefitting from the higher output in the region (+13% YoY), electricity sales increased by 2% YoY to $562m. Income from institutional partnerships was stable YoY at $219m, reflecting new tax equity partnerships, the output of the projects generating PTCs and with the YoY comparison impacted by oneoff event ($33m), from an update of tax equity investors postflip residual interest accretion. All in all, revenues in increased to $781m. 14

16 (USD) Electricity Output Average Selling Price Revenues Income Statement (US$m) GWh $/MWh $m Electricity sales and other Income from institutional partnerships +13% (9%) +1% Revenues 11,103 12, Other operating income Operating Costs Supplies and services (S&S) Personnel costs (PC) Other operating costs EBITDA EBITDA/Revenues Provisions Depreciation and amortisation Amortisation of deferred income (government grants) EBIT (251.1) (154.4) (48.6) (48.2) % 0.1 (343.1) (281.2) (149.0) (44.6) (87.6) % 0.2 (319.6) % (0.2%) +1% +18% (11%) +4% +9% (45%) +8% +5pp (53%) +7% (0.0%) +9% Opex ratios Employees Core Opex (S&S + PC) /Average MW in operation ($k) Core Opex (S&S + PC) /MWh($) (4%) (7%) % In, EDPR electricity sales in increased by 2% YoY to $562m, on the back of the 13% YoY increase in electricity output, offsetting the lower average selling price in the period (9% YoY). Income from institutional partnerships was stable at $219m, reflecting new tax equity partnerships, the output of the projects generating PTCs and with YoY comparison impacted by oneoff event ($33m), from an update of tax equity investors postflip residual interest accretion. Following the top line, in, revenues in increased by 1%, reaching a total of $781m. In the period, Other operating income totalled $26m (+$4m YoY) and Operating costs summed $251m ($30m YoY), with the +$9m YoY increase in Personnel costs and Supplies and services, justified by the higher capacity in operation and the O&M strategy, being offset by the YoY decrease in Other operating costs ($39m YoY). The decrease in Other operating costs was mainly driven by the $46m writeoffs recognized in. Core Opex (defined as Supplies and Services and Personnel costs) per average MW in operation decreased by 4% YoY to $48k, reflecting EDPR focus on efficiency and control over costs along with an increase in average MW in operation. Core Opex per MWh decreased by 7% YoY to $16, also benefitting by the higher production in the period. Following the EBITDA performance (+8% YoY) and the increase of $24m YoY in depreciations and amortisations(including impairments and net of amortisations of government grants), EBIT reached a total amount of $235m. In the 4Q15, as part of its asset rotation strategy, EDPR sold to Axium a minority cash equity interest in a US wind portfolio with a total production capacity of 1 GW. Proceeds from this asset rotation transaction($308m) were received in the 1Q16. In the 1Q16, EDPR also received $238m of proceeds related to the closing of an institutional partnership structure with an affiliate of Google Inc. for the 199 MW Waverly wind farm (signed in Oct15). In EDPR completed $457m funding of tax equity financing in exchange for an interest in the 250 MW Hidalgo wind farm, in the 78 MW Jericho Rise wind farm and in the 101 MW Amazon Wind Farm US Central project (Timber Road III). All projects had previously secured longterm sales agreements and construction was completed during. Reflecting the positive performance in Revenues and the decrease in net Operating costs in,ebitdaincreasedby8%yoy,to$555m,reachinganebitdamarginof71%. Note: In average exchange was 1.11 $/EUR. Exchange rate at Dec16 was 1.05 $/EUR 15

17 (BRL) Electricity Output Average Selling Price Revenues Income Statement (R$m) GWh R$/MWh R$m Revenues % (42%) % Other operating income Operating Costs Supplies and services (S&S) Personnel costs (PC) Other operating costs EBITDA EBITDA/Revenues Provisions Depreciation and amortisation Amortisation of deferred income (government grants) EBIT (41.8) (28.3) (8.0) (5.5) % (31.0) (35.9) (20.5) (5.8) (9.6) % (18.9) % +17% +38% +38% (42%) 113% +15pp +64% (79%) +147% Opex ratios Employees Core Opex (S&S + PC) /Average MW in operation (R$k) Core Opex (S&S + PC) /MWh(R$) (25%) (54%) % In Dec16, EDPR had 204 MW of wind installed capacity in (+120 MW YoY), of which 84 MW under incentive programs for renewable energy development (PROINFA) and 120 MW awarded according with an auction system. Under these programs the projects were awarded with longterm contracts to sell the electricity produced for 20 years, providing longterm visibility over cashflow generation throughout the projects life. In the previous ian energy auctions, EDPR was awarded with 20year PPA for JAU & Aventura(127 MW) and Babilônia(140 MW) wind farms, totalling 267 MW and with beginning of operations expected to start in 2017 and 2018, respectively. These projects strengthens EDPR s presence in a market with low risk profile, strong growth prospects and attractive wind resource. As of Dec16, was under construction the 127 MW JAU& Aventura wind project. In, EDPR generated 666 GWh vs 222 GWh in, the increase in production is mainly explained by the higher generation capacity (+120 MW) and by the higher load factor in the period(35%vs30%in). In, the average selling price in decreased to R$216/MWh, reflecting mainly the different mix of a new wind farm in operation(production vs price). In the period, EDPR s revenues in reached R$133m(+R$54m YoY), with the increasing in generation electricity more than compensating the decrease in average selling price. Operating costs totalled R$42m (+R$6m YoY). Reflecting the strict control over costs, higher capacity in operation and increased efficiency, Core Opex, defined by Supplies and Services (including O&M activities) and Personnel costs, totalled R$36m, with Core Opex per Avg. MW andpermwhdecreasingby25%and54%yoy. All in all, EBITDA reached R$97m (vs R$45m in ), with the EBITDA margin at 73% (+15pp vs). Note: In the average exchange was 3.86 BRL/EUR. Exchange rate at Dec16 was 3.43 BRL/EUR. 16

18 Quarterly Data 17

19 Quarterly Data Quarterly Data 4Q15 1Q16 2Q16 3Q16 4Q16 YoY QoQ EBITDA MW EDPR Load Factor EDPR GWh EDPR Tariff/Selling Price ( /MWh) (1) ($/MWh) (R$/MWh) Average Porfolio Price ( /MWh) Revenues ( m) EDPR EBITDA ( m) EDPR EBITDA Margin EDPR Net Profit EDPR ( m) Capex ( m) EDPR Net Debt ( m) Institutional Partnership Liability ( m) (1) 4,965 4,915 4,233 4, ,281 9,351 27% 39% 36% 32% 2,861 3, , % 40% 30% 38% 3,787 3, ,535 4,929 4,942 4,986 4,233 4,233 4, ,365 9,379 10,052 24% 33% 28% 28% 2,222 2, ,740 2,650 3, , % +15% +143% +8% % +8% (7%) (6%) (46%) +4% (0.2%) +0.2% % 78.3% 51.1% 76.9% ,707 1, % 71.2% 66.2% 73.4% (4pp) 71.8% 72.8% 62.7% 74.7% (4pp) 57.7% 66.3% 74.6% 81.8% +31pp 74.7% 70.6% 61.7% 73.6% (3pp) ,572 3, , ,414 3,303 1,259 1,165 21% 24% 32% 22% (16) (30) ,396 1,105 +1% +15% +7% 24% (3pp) +4pp 36% (3pp) +12pp 44% +8pp +11pp 30% (2pp) +8pp 232 (1%) 198 (14%) % 440 (6%) 27 2,755 1,520 (7%) +19% +2% +55% +240% (4%) +0.4% +35% +29% +50% +6% +37% (6%) +43% (18%) +79% +219% +16% (10%) +63% (59%) (45%) +119% (62%) +45% (26%) +31% +7pp +12pp +7pp +12pp (192%) +193% +108% +238% +119% (19%) +38% (1) Excludes institutional partnership revenues. 18

20 Income Statements 19

21 EDPR: Income Statement by Region ( m) N. America Other/Adj. Consolidated Electricity sales and other Income from institutional partnerships Revenues Other operating income Operating Costs Supplies and services Personnel costs Other operating costs EBITDA EBITDA/Revenues Provisions Depreciation and amortisation Amortisation of deferred income (government grants) EBIT (1.8) 1, (1.8) 1, (5.6) 53.8 (281.2) (226.9) (10.8) (14.7) (533.6) (162.0) (139.5) (7.3) 4.1 (304.7) (30.3) (43.9) (2.1) (17.6) (93.9) (88.8) (43.5) (1.4) (1.1) (134.9) (22.1) 1, % 71% 73% n.a. 71% (4.8) (4.7) (303.2) (310.0) (8.0) (3.3) (624.5) (0.0) (25.4) ( m) N. America Other/Adj. Consolidated Electricity sales and other Income from institutional partnerships Revenues Other operating income Operating Costs Supplies and services Personnel costs Other operating costs EBITDA EBITDA/Revenues Provisions Depreciation and amortisation Amortisation of deferred income (government grants) EBIT (25.2) (281.6) (253.4) (9.7) (21.6) (566.3) (150.8) (134.3) (5.5) (2.1) (292.7) (26.7) (40.2) (1.6) (15.8) (84.3) (104.1) (79.0) (2.6) (3.7) (189.3) % (0.0) (291.3) % 0.2 (287.9) % (5.1) 0.0 (1.6) (1.6) (22.1) n.a. 0.0 (3.2) (0.0) 1, , , % 0.2 (587.5)

22 EDPR : Income Statement by Country ( m) Spain Portugal RoE Other/Adj. (1) Total Revenues Operating Costs and Other operating income (122.6) (44.5) (73.7) (5.8) (246.5) EBITDA EBITDA/Revenues % % % 22.8 n.a % Depreciation, amortisation and provisions (132.6) (72.2) (98.2) (3.7) (306.7) EBIT ( m) Spain Portugal RoE Other/Adj. (1) Total Revenues Operating Costs and Other operating income EBITDA EBITDA/Revenues Depreciation, amortisation and provisions EBIT (6.0) (126.0) 87.6 (93.0) (10.0) (141.4) % % % (16.0) n.a % (132.6) (43.5) (108.7) (4.5) (289.3) (20.6) (1) Important note on Spain and Other: Pursuant the changes in thespanish regulatory framework, EDPR hedges its exposure to the Spanish pool price, accounted at the an platform level (Other/Adj.). On page 12, the hedging was included in the Spanish division only for analytical purposes. 21

23 Annex 22

24 Equity Consolidated & Noncontrolling Interest (MW) Equity Consolidated (MW) (1) EDPR Interest MW Share of profit EBITDA Equivalent Country YoY YoY % Spain ( 0.1m) 1.3m ( 1.4m) 8.2m 11.3m (28%) US $0.5m $8.5m +$8.9m $15.1m $7.8m +92% Noncontrolling Interest (Net MW) Installed Capacity (MW) YoY Spain Portugal As of Dec16, EDPR managed a total of 2.5 GW corresponding to minorities held by institutional and strategic partners, an increase of 1,056 MW from Dec15, mainly reflecting EDPR settlement of asset rotation and CTG deals executed in with Axium, in withefghermesandctg,andinwithctg. Rest of (RoE) EDPR asset rotation strategy is based in selling minorities stakes in its optimized wind farms to reinvest in the development of quality and value accretive projects. 1, Total 2,521 1,466 +1,056 (1) Breakdown only considers associate companies with installed capacity 23

25 Remuneration Frameworks Country Short Description Country Short Description Sales can be agreed under PPAs (up to 20 years), Hedges or Merchant prices Green Certificates (Renewable Energy Credits, REC) subject to each state regulation Tax Incentive: France Feedin tarifffor 15 years: First 10 years: receive 82/MWh; inflation type indexation Years 1115: depending on load factor receive hours decreasing to hours; inflation type indexation US PTC collected for 10years since COD ($23/MWh in 2013) Wind farms beginning construction in 2009 and 2010 could opt for 30% cash grant in lieu of PTC Market price plus green certificate (GC) system Separate GC prices with cap and floor for Wallonia ( 65/MWh100/MWh) Belgium Option to negotiate longterm PPAs Canada Feedin Tariff (Ontario) Duration: 20years Bilateral Electricity Supply Agreement under selfsupply regime Poland Electricity price can be established through bilateral contracts or selling to distributor at regulated price (PLN171.52/MWh for 1Q 2017) Wind receive 1 GC/MWh which can be traded in the market. Electric suppliers have a substitution fee for non compliance with GC obligation. The substitution fee is set at PLN300/MWh Mexico Spain Duration: 25years Wind energy receives pool price and a premium per MW, if necessary, in order to achievea targetreturn established as the Spanish 10year Bond yields plus 300bps Premium calculation is based on standard assets (standard load factor, production and costs) Romania Wind assets (installeduntil 2013)receive 2 GC/MWh until 2017 and 1 GC/MWh after 2017 until completing 15 years. 1 out of the 2 GC earned until Mar2017 can only be sold from Jan2018 and until Dec2020. Solar assets receive 6 GC/MWh for 15 years. 2 out of the 6 GC earned until Mar2017 can only be sold after Apr2017 and until Dec2020. GC are tradable on market under a cap and floor system (cap 59.9 / floor 29.4) Wind assets (installed in 2013) receive 1.5 GC/MWh until 2017 and after0.75 GC/MWh until completing 15 years Portugal MWs from previous regime: Feedin Tariff inversely correlated with load factor throughout the year. Tariff updated monthly with inflation, through the later of: 15years of operation or 2020, + 7 years (extension cap/floor system: 74/MWh 98/MWh) ENEOP: price defined in a international competitive tender and set for 15 years (or the first 33 GWh per MW)+ 7 years (extension cap/floor system: 74/MWh 98/MWh).Tariff for first year established at c. 74/MWh and CPI monthly update for following years VENTINVESTE: price defined in a international competitive tender and set for 20 years (or the first 44 GWh per MW) Italy Projects online before 2013 are (during 15 years) under a pool + premium scheme (premium=1x 180/MWh P1 )x0.78, being P1 previous year average market price Assets online from 2013 onwards were awarded a 20 years contract through competitive auctions. According with the auction scheme, the electricity produced by these wind farms will be sold to the market and if the realized market price is lower than the awarded price, the difference will be paid by Gestore dei Servizi Energetici ( GSE ) Installed capacity under PROINFA program Competitive auctions awarding 20years PPAs 24

26 Sustainability Highlights Environmental Metrics Social Metrics CO2 Avoided (kt) MW certified ISO % +12% 9,292 20,078 18,727 8,303 Employees training hours (#) +15% 44,350 38,619 MW certified OHSAS % 9,836 8,415 Compliance Monetary value of environmental sanctions ( k) Waste treatment Total waste (kg/gwh) Total hazardous waste (kg/gwh) Total Oil related wastes (%) Human Capital Overview Employees Turnover % of female workforce % of hazardous waste recovered 87% 73% +14pp Corporate Citizenship 0.3 YoY Health & Safety indicators YoY % YoY (1) 72.8 (33%) Number of industrial accidents (19%) (2) Injury rate (IR) (3) 70% +7pp Lost work day rate (LDR) Employee Volunteering (hours) 1,083 12% 33% 1,086 2,683 YoY 1,018 14% 32% +6% (2pp) +1pp (7%) (18%) +13% YoY (60%) Economic Metrics Main Events in Sustainability Economic Value ( m) Directly Generated Distributed Accumulated YoY Date Description 1,792 1,790 +0% 1,172 1,115 +5% (8%) Mar employees in & completed EDPR Ethics online course aimed to know more about EDPR ethical development, management systemandheprinciplesandcommitments setoutinedprcodeofethics. Apr16 Jun16 Dec16 EDPR was granted as Great Place to Work in Spain, in the category of companies with 250 to 500 employees. EDPR Campaign Kilos of Solidarity collected more than 2,000 kg of food and products of first necessity to be distributed through 12 NGOs. EDPR Solidarity action raised funds for various projects, in Africa, Asia and South America, of which two related to electrification of areas with limited resources. (1) Includes staff and contractors data; (2) Injury Rate calculated as [# of accidents/hours worked * 1,000,000]; (3) Lost Work Day Rate calculated as [# of working days lost/hours worked * 1,000,000]. 25

27 Share Performance & Shareholder Structure EDPR Share Price Performance Main Events Share Price ( ) Jan16 Mar16 May16 Jul16 Oct16 Dec16 Opening Price Minimum Price Maximum Price Average Price Closing Price Share performance Dividend per share Total Shareholder Return Volume (m) Share Price ( ) Events Capital Market Indicators (1) 2017 YTD M16 1H % (17%) (1%) (6%) % (16%) (1%) (6%) Q (7%) 0.00 (7%) Volume (m) % % # Date Description 14Jan EDPR informs about the Spanish renewable energy auction 26Jan EDPR FY15 Volumes & Capacity Statement release 24Feb EDPR FY15 Annual Results release 10Mar EDPR secures a new long term contract for 100 MW in Canada 14Apr EDPR Annual Shareholders' Meeting 19Apr EDPR executes an asset rotation transaction in 20Apr EDPR 1Q16 Volumes & Capacity Statement release 04May EDPR 1Q16 Results release 05May EDP Group Capital Markets Day 16May EDPR Payment of Dividends ( 0.05 per share) 12Jul EDPR 1H16 Volumes & Capacity Statement release 27Jul EDPR 1H16 Results release 28Jul EDPR secures PPA for new 200 MW wind farm in the US 26Sep EDPR established new institutional partnership structure (328 MW; US) 18Oct EDPR 9M16 Volumes & Capacity Statement release 27Oct EDPR concludes the sale of minority stakes in Poland and Italy 03Nov EDPR 9M Results Release 28Nov EDPR secures a 75 MW PPA for a new wind farm in the United States 14Dec EDPR established new institutional partnership for 101 MW in the US 16Dec Changes on EDPR s corporate bodies 20Dec EDPR completed $343m funding of tax equity in the US 23Dec EDPR was awarded LT contracts for 127 MW at the Italian wind auction Share Price (2) Volume (m) Daily Average (m) Market Cap ( m) , , , , , , % 3.1% Shareholder Structure Investor Type (exedp Group) Investor Relations Department 77.5% EDP Group MFS Investment Management Other shareholders 23% 2% 8% Investment Funds 54% SRI Pension Fund & Other Retail (3) Rui Antunes, Head of IR Address: Maria Fontes Serrano Galvache, 56 Edificio Olmo, 7º Pia Domecq 28033, Madrid, España Paloma BastosMendes Head Office: Plaza de la Gesta, nº 2 ir@edpr.com Oviedo, España Site: Phone Fax: C.I.F. n. º A LEI: MUFAH07Q1TAX06 (1) From 01Jan2017 until 24Feb2017; (2) Bloomberg data including all exchanges and OTC; (3) Dated as of 31Dec16. 26

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