EEI Conference. November 10 th, 2015

Transcription

1 EEI Conference November 10 th,

2 Disclaimer This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this presentation is made, or by reading the presentation slides, you acknowledge and agree to be bound by the following limitations and restrictions. Therefore, this presentation may not be distributed to the press or to any other person in any jurisdiction, and may not be reproduced in any form, in whole or in part for any other purpose without the express and prior consent in writing of the Company. The information contained in this presentation has not been independently verified by any of the Company's advisors or auditors. 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. Neither the Company nor any of its affiliates, subsidiaries, directors, representatives, employees and/or advisors shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation and all materials, documents and information used therein or distributed to investors in the context of this presentation do not constitute or form part of and should not be construed as, an offer(publicorprivate)tosellorissueorthesolicitationofanoffer(publicorprivate)tobuyoracquiresecurities ofthecompanyoranyofitsaffiliatesorsubsidiariesinany jurisdictionoraninducementto enter into investment activity in any jurisdiction. Neither this presentation nor any materials, documents and information used therein or distributed to investors in the context of this presentation or any part thereof, nor the fact of its distribution, shall form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever and may not be used in the future in connectionwithanyoffer(publicorprivate)inrelationtosecuritiesissuedbythecompany.anydecisiontopurchaseanysecuritiesinanyofferingshouldbemadesolelyonthebasisoftheinformationtobe contained in the relevant prospectus or final offering memorandum to be published in due course in relation to any such offering. 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 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 U.S. securities laws, 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 U.S. securities laws and applicable state securities laws. This presentation is made to and directed only at persons (i) who are outside the United Kingdom, (ii) having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to(d) of the Order(all such persons together being referred to as"relevant Persons"). This presentationmustnotbeactedorreliedonbypersonswhoarenotrelevantpersons. Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements are statements other than in respect of historical facts. The words believe, expect, anticipate, intends, estimate, will, may, "continue," should and similar expressions usually identify forward-looking statements. Forward-looking statements include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; energy demand and supply; developments of the Company s markets; the impact of legal and regulatory initiatives; and the strength of the Company 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 the Company 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. 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, financial strategy, national and international economic conditions, technology, legal and regulatory conditions, public service industry developments, hydrological conditions, cost of raw materials, financial market conditions, uncertainty of the results of future operations, plans, objectives, expectations and intentions, among others. Such risks, uncertainties, contingencies and other important factors could cause the actual results, performance or achievements of the Company or industry results to differ materially from those results expressed or implied in this presentation by such forward-looking statements. The information, opinions and forward-looking statements contained in this presentation speak only as at the date of this presentation, and are subject to change without notice unless required by applicable law. The Company and its respective directors, representatives, employees and/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. 2

3 EDP s distinctive equity story Visibility on profitable growth driven by renewables Balance between Growth & Deleverage Deleverage commitment Improved visibility of medium term FCF potential Attractive Returns Controlled Risk Keeping a low risk profile: >85% weight of EBITDA from Regulated and LT Contracted Value of portfolio diversification by market and technology Sustainable dividend policy per share as a floor (65% payoutin 2014) Keeping a distinctive profile amongst European Utilities 3

4 Sound shareholder structure EDP Shareholder Structure (September 30 th, 2015) FREE FLOAT, 37.6% CHINA THREE GORGES, 21.3% Dec-11: CTG won the privatisation of a 21.35% stake in EDP (@ 3.45/share: 50% above market price on date of announcement): Commitment to 4-year lock-up and standstill period until May-2016; CAPITAL GROUP, 17.1% Masaveu53% Liberbank47% CTG represented by 5 members in the General and Supervisory Board(non executive) TREASURY STOCK, 0.6% QATAR, 2.3% SONATRACH, 2.4% BCP Pension Fund, 2.4% OPPIDUM, 7.2% BLACKROCK, 5.0% SENFORA (ABU DHABI), 4.1% CTG is China s largest clean energy group (100% owned by People s Republic of China): 42.4GW of capacity + 32GW under construction, mostly large hydros Rating: S&P: A; Moody s: Aa3; Fitch: A+ Long term Institutional Investors have kept or reinforced their position while shareholders with overhang positions have exited or decreased their holdings 4

5 Business portfolio geographically diversified Wind & Solar Power 25% of EBITDA (10% North America; 6% Spain; 4% Portugal; 5% Other) Listed subsidiary: EDP Renováveis (EDP has 77.5%) IPO in Jun-08 Wind & Solar Power: 8.1GW A worldwide renewable market leader EDP Brasil 17% of EBITDA Listed subsidiary: EDP Brasil(EDP has 51%) Presence since 1996 Power generation: 1.8 GW (hydro) 2 electricity distribution concessions Portugal 44% of EBITDA Privatisation in 1997 (IPO) Single electricity distributor Power generation: 8.7 GW (ex-wind) (from which 5.4GW is hydro) Spain 14% of EBITDA Presence since 2001 Power generation 3.8 GW (ex-wind) # 2 in gas distribution Note: Data as of Dec-14 5

6 EDP has a low risk operating profile Liberalised Activities Iberia 11% Liberalised generation and supply in Portugal and Spain: 7.8GW: 48% CCGT; 19% Coal; 31% Hydro; 2% Nuclear Brazil 17% EBITDA: ~50% electricity generation; ~50% electricity distribution Generation: 1.8GW hydro; PPA contracts (inflation updated) ~90% Long Term Contracted and Regulated Activities Wind Power Iberian Regulated Energy Networks 25% 28% Distribution: regulated return on RAB with efficiency incentives EBITDA: 40% North America, 25% Spain, 15% Portugal, 5% Brazil and 15% Rest of Europe Spain, Portugal & France: 3.2GW with feed-in tariffs (inflation updated) USA: 3.8GW mostly long term contracts + tax incentives Electricity and gas distribution in Portugal and Spain: EBITDA ~2/3 from electricity Portugal Regulated return on RAB with efficiency incentives or regulated revenues annually updated LT Contracted Generation Iberia 18% Generation under PPA/CMEC contracts or Feed-in tariffs 4.5 GW under PPA/CMEC in Portugal (8.5% RoA): 74% hydro and 26% coal; EBITDA 2014 LT Contracted and Regulated activities represent > 85% of EBITDA: Support for a resilient performance 6

7 Installed capacity doubles in 10 years based on organic growth in competitive renewables EDP Group installed capacity by technology (1) (GW) Nuclear, Fuel and Other Coal Gas and Cogen. Wind and Solar Hydro 2.0x % 14% 15% 3% % 22% 14% 43% 47% 38% 33% 70% E 11GW of new capacity added has PPAs or feed-in tariffs reducing exposure to market volatility Balanced approach between profitable growth and shareholder remuneration ( 6.1bn of dividends paid) (1) Does not include capacity equity method consolidated 7

8 Projects in execution reinforce competitiveness of our generation portfolio by 2017 Average Residual Useful Life of EDP s Generation Portfolio by Technology Dec-2017E (1) (Years) Hydro CCGT Wind & Solar Nuclear Coal with DeNOx Coal without DeNOx Average Residual Useful Life of EDP s Generation Portfolio (Years) (% weight on total GW) Concession End Dates +44% 23 (34%) (14%) years total asset life (1%) (10%) (1%) 3 (40%) years avg. age of portfolio Years Dec-2005 Dec-2017 Generation portfolio with low exposure to CO 2, NOx or nuclear lifecycles Long term contracted generation and regulated networks to represent ~70% of EBITDA by 2017 (1) Reference Date: Dec-17; Excluding: Special Regime (Mini-hydro, Cogeneration and Biomass) and Tunes (for system s backup); Including MW attributable by Equity Consolidated 8

9 Growth up to 2017: Focus on execution on time / at cost as to protect investment returns Capacity additions E (1) (GW) Focused on wind & hydro greenfield projects Already online 1.5 Hydro Portugal Wind Hydro Brazil Coal Brazil Total Hydro Portugal(pumping/storage): 4 plants (91% completed) to be commissioned in 4Q15 and 2016 Wind(PPA/feed-in tariff):0.5gw under construction; +0.9GW PPAs awarded mostly US, Mexico and Brazil Hydro Brazil (1) (PPA inflation linked): Cachoeira Caldeirão to start in 2H16, (São Manoelonly for 2018) Coal Brazil (PPA inflation linked):opportunistic; Full consolidation since May-15 and showing improvements CTG Partnership and disposals support capital discipline: CTG partnership: ~ 1bn out of ~ 2bn target of disposals/co-investment deals already executed EDPR asset rotation: 0.7bn target for , >70% already executed Opportunistic disposals: isolated gas distribution in Spain (1Q15); isolated mini-hydros in Brazil (1Q16E) Balancing growth and capital discipline through asset rotation strategy (1) Hydro Brasil: 50% stake in Cachoeira Caldeirão to be equity consolidated(são Manoel not included as its commissioning is planned for 2018); Wind capacity includes 613MW from ENEOP fully consolidated since Set-15; Coal includes 50% of Pecém acquired in May-15 9

10 Lower net investments in prompted by the completion of new hydro projects in Portugal Net Investments (1) : E ( bn) Breakdown of accumulated consolidated Capex (%) ~ 1.6 ~ 1.2 3% 8% 25% 24% Other Brazil Regulated Networks Iberia Generation Iberia (mostly new hydro) 40% EDP Renováveis Avg E Avg. 2016E-2017E E Maintenance capex mostly in our regulated networks in Portugal, Spain and Brazil: stable at ~ 650m /year Net investments in wind capacity over the period at a pace of ~500MW/year (~ 650m/year) Net investments in wind capacity over the period at a pace of ~500MW/year (~ 650m/year) (1) Net Investments include capex and financial investments in the period and 0.7bn of financial divestments of minority stakes in wind farms by EDPR in E; disposals to CTG not included in these figures 10

11 EBITDA growth in 2015E-17E backed by the delivery of new capacity and efficiency improvements EBITDA Breakdown E (2) (%) Major Drivers for EBITDA 2015E-2017E CAGR E Efficiency: OPEX program extended to 180m/year by 2017E 3.5bn EDP Brasil EDPR +~5% Iberian Business: Stabilization of regulatory environment and slight improvement of market conditions in Iberia; HydroPortugal Capacity additions: 111MW in 9M15, 207MW in 4Q15 and 1,161MW in 2016 Iberian Business (1) (2) E EDP Renováveis: Windcapacity additions: +500MWper year (mostly US), including 613 MW from ENEOP fully consolidated since Set-15 EBITDA and Net income E CAGR: ~5% (3) 2017E: ~>70% of EBITDA coming from Regulated Activities (1) Excluding wind; (2) Based on Recurrent EBITDA; adjusted for the sale of 50% stakes in Jari/CachoeiraCaldeirão(- 131m); HR restructuring (- 81m); first time accounting of regulatory receivables in Brazil (- 64m) and impact from low GSF in Brazil ( 111m); (3) net profit E CAGR growth based on a 2014 recurrent net profit of 0.9bn 11

12 Growing cash flows with low risk profile support deleveraging 2014E-2017E: Sources and Uses of Funds (%) Financial Divestments ~ 10% Change in reg. receivables ~ 5% ~ 50% Net investments (2) Adjusted FFO (1) ~ 85% ~ 30% Dividends (3) ~ 20% Debt Reduction Sources 2014E-2017E Uses 2014E-2017E Free Cash Flow positive in 2015E-2017E period Target of 3.0x Net Debt (4) /EBITDA by 2017E (1) Adjusted FFO includes changes in working capital and excludes changes in regulatory receivables (2) Net of TEI and includes perimeter variations, namely ENEOP consolidation from 2015 onwards (3) Includes dividends paid to EDP shareholders and minorities (4) Adjusted by regulatory receivables 12

13 Dividend Policy is sustainable, transparent and attractive EDP s dividend performance ( cents; %) Dividend per share ( cent) Dividend Payout Ratio (%) 60% 67% 67% 65% Dividend Amount ( M) dividend per share as a floor; target payout ratio in the 55%-65% Attractive dividend yield at ~5.5% 13

14 Financial deleveraging and maintenance of EDP s low risk profile European Utilities: 2014 Net Debt/EBITDA vs. Business Mix (1) (x;%) Net Debt/EBITDA 2014 (x) Verbund SNAM REN 4.5 National Grid Enagás 4.0 RWE E.ON Iberdrola REE A2A Gas Natural 2.5 Fortum GDF Suez ENEL 2.0 EDF Centrica 1.5 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Weight of 2014 EBITDA from Regulated Networks + PPA s (%) Gradual termination of PPAs and new stage of CMECs system post 2017 in Portugal: EDP will continue to be one of the most regulated names amongst integrated European Utilities (1) Source: Company Reports. EDP s Net Debt /EBITDA excluding regulatory receivables 14

15 9M15 Results: EBITDA +10% Adj. EBITDA +5% driven by EDPR and EDP Brasil EDP EBITDA ( million) EDP Adjusted (1) EBITDA ( million) +10% +5% Adjustments 2.708m m 424 Generation & Supply Iberia % -13% % Recurrent EDP Renováveis EDP Brasil 26% 10% +16% +49% 29% 14% Reg. Networks Iberia (2) 29% 1% 28% 9M14 9M15 9M14 9M15 Generation & Supply Iberia: hydro volumes and energy management results: weak in 9M15 vs. strong in 9M14 EDP Renováveis: recovery of prices in Spain and US; new capacity; weaker wind resources YoY and positive ForEx EDP Brasil: Negative tariff deviations in distribution in 9M14, new capacity (Pecém), losses with hydro deficit, negative ForEx Regulated networks Iberia: Lower RoRAB in Portugal, higher efficiency 1) Adjustments in 9M14: i) gain on sale of Jari/ CC (- 131m); ii) gain on new CLA in Portugal (- 129m); Adjustments in 9M15: i) gain on disposal of isolated gas distribution assets in Spain (- 89m); ii) gain from Pecém I acquisition (- 295m, from which 267m at EDP Brasil level and 28m at holding level); iii) net one-off at EDPR level ( 40m) (2) Includes Regulated Networks and Others 15

16 9M15 results penalized by weak hydro & wind volumes in our key markets vs. strong 9M14 Hydro Deficit (1-GSF) - Brazil (100% = avg. year) EDP Hydro, Wind and Solar Production (TWh) % Chg. YoY -8% 9M14-18% 9M % Hydro Coefficient Portugal (1.0 = avg. year) +33% Hydro Brazil Hydro Iberia % -38% M14-22% 9M15 Wind Load Factor EDPR (Quarterly load factors vs. average quarter) +3% Wind & Solar M14-4% M15 Generation output from new capacity 9M14-3% 9M15 Hydro & wind represented 59% of EDP s generation mix in 9M15 vs 72% in 9M14 16

17 Brazilian Electricity System unveils signs of improvement in 3Q15 EDP Brasil: Quarterly Evolution of GSF Losses (2) (R$m) Hydro reservoirs Southeast/Center-West Regions (1) (%) EDP Brasil GSF losses (R$m) 165 PLD (R$/MWh) % 37.4% 37.4% 36.3% 36.3% 36.0% 36.1% 28.5% 34.4% 33.5% 30.3% 34.3% 32.4% 28.4% % 18.7% 0 Q114 Q214 Q314 Q414 Q115 Q215 Q315 GSF 96% 94% 85% 88% 79% 81% 86% Mar Apr May Jun Jul Aug Sep Oct Lower PLD supported by higher rainfall, lower demand (-1.3% in 9M15), new capacity and lower thermal dispatch GSF insurance claim currently under discussion between players and regulator Hydro crisis in Brazil: improved higher reservoir levels support more optimistic scenario for 4Q15 (1) ) Source: ONS; Expected October data as of September 24 th, 2015 vs. October 31 th, 2014; (2) GSF losses for EDP Brasilnet of hedging 17

18 9M15 Operating costs: Successful cost control Operating costs (2) : 9M15 vs. 9M14 ( million) 9M15 YoYInflation (3) (%) Brazil EDPR Iberia +1% % +15% 9.5% % 0.3% -0.5% 9M14 9M15 Portugal Spain Brazil (IPCA) Iberian business: -3%; costs savings on IT & client services, 3% YoY reduction on headcount (mostly early retirements) EDPR: +6% in local currencies, vs. +8% average installed capacity (adjusted Opex/MW -4%) Brazil: +11% in local currency, or +2% excluding impact of Pecém s full consolidation: clearly below local inflation OPEX III efficiency program: 132m accumulated costs savings (4) achieved in 9M15 (+ 22m vs. 9M14) (1) Gross profit adjusted for PTC revenues; (2) OPEX=Supplies & Services + Personnel costs & employees benefits; excluding the 129m gain booked in 9M14, on the back of the new Collective Labour Agreement signed in Portugal; (3) Portugal and Spain: INE; Brazil: FVG; monthly average for IPCA. (4) cost savings measured vs cost base, excluding inflation and activity growth 18

19 Net Profit breakdown ( million) 9M14 9M15 % Abs. EBITDA 2,708 2, % +284 Amortisation, Impairm. and Provisions 1,036 1,067 +3% +32 EBIT 1,672 1, % +252 Financial Results & Associated Companies (429) (651) +52% -222 Income Taxes % -38 Extraordinary Energy Tax in Portugal % -1 Non-controlling interests % +98 Net Profit % -30 Lower results with associates: - 50m YoY, mostly due to Pecém Financial results: Impacted by weak ForEx evolution (EUR and BRL versus USD) and lower capitalized financial costs Extraordinary energy tax: 0.85% on net fixed assets in Portugal Impacted by the gain derived from Pecém acquisition ( 132m) Adjusted net profit (1) : -18% YoY from 690m in 9M14 to 564m in 9M15 (1) Non-recurrent impacts 9M14: Gain with sale of 50% of Jari/CC; new collective labour agreement in Portugal and extraordinary energy tax; Non-recurrent impacts 9M15: Gain on the sale of gas distribution assets in Spain; Gain derived from the acquisition of Pecém I; EDPR net one-offs; BCP impairment; extraordinary energy tax 19

20 Portuguese electricity system: Slight tariff surplus in 9M15; proposal for 2016 reaffirms sustainability Portugal: Electricity System Regulatory Receivables ( bn) Flat YoY Other ~ EDP Set E 2016E 2017E 2020E 9M15 Demand (1) (YoY; %) -1.8% -0.1% +2.0% Avg. Tariff (YoY; %) 2.8% 2.8% 3.3% Demand (YoY; %) Pool Price 2.5% (2) ( /MWh) 50.5 Special Regime -0.9 YoY Production (TWh) 2015E ERSE Jan/Oct-15 (4) +1.8% (3) YoY Tariff surplus of 55m in 9M15: supported by demand recovery, normalized wind volumes and stable pool price Regulator s proposal for 2016 tariffs: Assumes 0.4bn decrease in electricity system debt in 2016 (1) Electricity distributed by EDP (2) Based on ERSE s proposal for 2016 tariffs presented on October 15th 2015; final decision of 2016 tariffs to be announced on December 15 th (3) 2015 Electricity distributed 2015E by ERSE vs real (4) All figures in this column reflect data as of October 22 nd 20

21 Net Debt 9M15 impacted by the full consolidation of Pecém Change in Net Debt: Sep-15 vs. Dec-14 ( billion) - 0.4bn + 0.3bn Regulatory Receivables Net Debt /EBITDA Adj. Net Debt /EBITDA Net Debt Dec x 4.0x Free Cash Flow (1) Regulatory Receivables Hybrid Expansion Capex & Net investments (2) Dividends Net Debt (Before Pecém) Negative impact from Pecém(+ 0.7bn): 50% equity acquisition and full debt consolidation; Neutral ForEx impact Pecém 750m hybrid bond issued in Sep-15 (50% equity content (3) ): reinforcement of EDP s credit metrics Net Debt Sep x 3.8x (1)EBITDA -Maintenance capex -Interest paid -Income taxes + Chg. in work. capital (excluding regulatory receivables); (2) Expansion capex (including impact from ENEOP consolidation), Net financial investments (excluding Pecém I acquisition) and Chg. in work. capital from equip. suppliers; (3) According to the methodology followed by rating agencies 21

22 natural hedge policy: Investments and operations funded in local currency to mitigate ForEx risk EDP consolidated debt by currency: Sep-15 (%) EDP consolidated debt maturity profile as of Sep-15 ( billion) EDP SA & EDP Finance BV Other Subsidiaries Hybrid Bond Commercial Paper Avg. Debt Maturity (1) : 4.6 years USD 23% PLN 1% BRL 8% 68% EUR > 2022 Extension of average debt maturity (1) from 4.0 years in Dec-14 to 4.6 years in Sep-15 (1) Hybrid bond not included in this figure 22

23 Financial Liquidity vs. Refinancing Needs Sources of funds Use of funds Cash & Equivalents (Sep-15): Available Credit Lines (Sep-15): 1.1bn Refinancing needs in 2016: Bonds maturing in Feb bn 0.75bn Revolving Credit Facilities 3.75bn Bonds maturing in Jun bn Other Credit Lines Total 0.3bn 4.0bn Bonds maturing in Sep-16 Other maturing in bn 0.5bn Refinancing needs in 2017: 1.3bn TOTAL 5.1bn TOTAL 4.1bn Financial liquidity covers refinancing needs beyond

24 Outlook for 4Q15/2016: EBITDA Iberian Business Impact from hydro capacity additions concentrated mostly in 2H16 / Hedging provides significant protection to power price exposure Renewables Brazil Commissioning of new capacity Strong level of hedging for 2016 Better GSF, Pecém improving, start of Cachoeira Caldeirão Weaker currency Financial Results Net Debt Decline in average cost of debt Capex reduction due to completion of new hydro plants in Portugal Regulatory receivables decreasing Execution of CTG partnership Reaffirming financial outlook for

25 Main risks to EDP s Business Plan Risks Mitigation Market environment ForExand Interest rate Regulatory Framework Regulatory Receivables Disposals Plan Recovery of demand Decrease of inflation with negative impact in regulated activities Energy market prices Market volatility in credit spreads ForExexposure on P&L -Brazilian real and US dollar Further material regulatory/fiscal measures in Iberia Regulatory review in Brazilian distribution Lower securitization deals than expected Brazil - Continuing drought and resulting higher-thanexpected costs with energy Investments by China Three Gorges EDPR s minority disposals to other investors: market appetite Progressively recovering Hedge provided by floating rates (~49%) Hedging Policy Strong financial liquidity Funding in local currency Balanced electricity systems reduces probability To be aligned with country risk evolution Low probability in the current market context Several mitigating mechanisms: tariff adjustments, CCEE/ACR contributions, tariff flags CTG/EDP with aligned interests 0.7bn of investments conditioned by disposals (>70% of target met so far) EDP to preserve its low risk profile and proceed portfolio diversification 25

26 Low risk: Sustainability as an integrated component of EDP s strategy EDP s strategy integrates the 3 pillars of sustainable development Major strategic Sustainability targets by 2017 Environmental Dimension Environmental Dimension Reduce CO2 specific emissions by 70% until 2020 (vs. 2008); Globally extend environmental externalities evaluation; Social Dimension Keep the SAM Gold Class Economic Dimension Economic Dimension Social Dimension Achieve 75% of clean capacity; Maintain R&D investment up to 20M/year; Keep employees Global Satisfaction level above 80%; Maintain EDP part of the World Most Ethical Companies of the Ethisphere Institute; DJ Sustainability Index: Best score for utilities worldwide in 2013 and 2014 and member of DJSI World for 8 years EDP aims at maintaining a leadership position in terms of sustainability best practices 26

27 IR Contacts Miguel Viana, Head of IR Sónia Pimpão João Machado Maria João Matias Sérgio Tavares Noélia Rocha Phone: Visit EDP Website Site: Link Results & Presentations: ados.aspx Next Events Nov 9-10 th : EEI Financial Conference in Miami Nov th : UBS European Conference in London Nov 25 th : Roadshow in Edinburgh (Investec) Dec 3 rd : Roadshow in Milan (Mediobanca)