4, MW 418 MW MW 521 1,251 2,371 MW. Offshore under develop ment. Offshore under develop ment

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2 30 MW #4 4,811 MW Offshore under develop ment 71 MW 418 MW #2 200 MW 204 MW 1,251 MW Offshore under develop ment #1 388 MW 2,371 MW #3 144 MW 521 MW #3 (1) December 2016: Installed capacity includes EDPR s Equity consolidated: 177 MW in Spain and 179 MW in the US; Includes 82 MW of Solar PV 2

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6 Ongoing renewable competitiveness improvement Renewables are a competitive and Quality cheap technology assets (wind LCoE -66% since ) to cope with the increasing energy demand and the need of a low carbon economy supporting increasing growth in main markets Solid specific market fundamentals, Quality namely assets in the US despite new macro landscape, based on clear bipartisan support along with state level targets, coal shut-down plans and C&I 2 increasing market with EDPR well positioned to benefit from its 2020 strategy A strong renewable sponsor exposed to attractive Quality markets, assets with clear competitive advantages supported by unique core competences on project development, PPAs origination & asset management (O&M strategy and low-risk profile) (1) Source: Lazard s Levelized Cost of Energy Analysis from Jan-2017; (2) Commercial & Industrial companies 6

7 2016 Performance Quality assets Selective and profitable growth Self-funding business 97.7% availability higher than 97.5% target; benefitting from predictive maintenance and O&M strategy Quality assets 30% load factor vs 29% in 2015 but 96% of P50 impacting 29m in EBITDA -5% YoY Core Opex/Avg. MW -8% per GWh; O&M strategy and scale +820 MW installed in 2016 higher than 700 MW target; with 248 MW already under construction Quality assets >65% of 2020 target secured +3.5 GW of additions in NP 56m -66% YoY due to one-offs 104m adj. net profit (-4% YoY) Asset rotation 550m cashed-in along with 0.4bn from CTG; attractive 1.7m/MW multiple Quality assets Lower cost of debt at 4.0% 2.3bn restructured & prepaid since bn Net Debt & TEI reduction after 1.06bn of total investments 95% of Revenues fixed 1 61/MWh avg. selling price in line with guidance 1,171m EBITDA (+12% YoY adj.) higher than +8% CAGR growth target 698m (+13% YoY) RCF 2 from young assets exposed mostly to PPA/FiT (1) Based on status at the beginning of 2016; (2) RCF stands for Retained Cash Flow 7

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9 Installed Capacity 1 (EBITDA MW + Equity Consolidated) 2016 Additions 2 Under Construction Portugal 12% Rest of Europe 15% Brazil 2% +429 MW +100 MW +72 MW +21 MW Spain 23% 10.4 GW North America 48% +120 MW +200 MW +127 MW - Average Installed Capacity increased by 960 MW (+11% YoY) +820 MW +248 MW 2016 execution above expectations: 820 MW added YTD and 248 MW under construction (1) Incl. equity consolidated: 177 MW in SP & 179 MW in the US; (2) In EU: PT (4 MW), FR (24 MW), IT (44 MW); does not consider 50 MW deconsolidated in PL; 200 MW in MX to start full consolidation in

10 Load Factor and Technical Availability % 33% 35% 30% D% YoY -0.2pp +1.1pp +4.3pp +0.4pp 2016 vs. Average (P50) 97% 96% 96% 107% EDPR Load Factor analysis vs. long-term average (P50) (%) +7% % -3% -4% -3% -3% -7% -11% 1Q 2Q 3Q 4Q 2016: EDPR Load Factor vs. Market Averages (2) (%) EDPR Mkt +2pp - +2pp - +6pp +1pp - EDPR Availability % -0.1pp Load factor increased to 30% in 2016 on the back of new assets with above average load factors High level of availability (97.7%) reflecting distinctive core competences (1) Technical Energy Availability (TEA); (2) Avg NCF sources: REE/AEE (Spain), REN (Portugal), RTE (France), Elia (Belgium), Terna/ANEV (Italy), PSE/URE (Poland) & Transelectrica (Romania) 10

11 TWh r% YoY Electricity Production (TWh) +12% Output growth across all platforms; impact from 2015 ENEOP consolidation (+1.0 TWh YoY) % % Impact from capacity additions with above average load factors +200% Reflecting mainly 120 MW of capacity added YoY 2015 Capacity Growth D Load Factor 2016 In 2016 EDPR generated 24.5 TWh avoiding 20.1 mt of CO 2 emissions Electricity Output breakdown: 51% in US, 46% in Europe and 3% in Brazil 11

12 2016 r% YoY 1 EDPR Price Evolution ( /MWh) % Driven by ENEOP consolidation Poland: 87 MW with GC fully exposed to market price % 60.5 $46.4-9% PPA (-7%): different mix profile Non-PPA (-21%): flat wholesale + hedges; 2015 benefitted from sale of 2014 REC stock 1Q: Q: Q: Q: 61.3 R$216-42% Reflecting a different mix of a new wind farm in operation Selling price -5% YoY due to different mix and lower pool price mitigated by hedging strategy (1) Evolution calculated in local currency 12

13 Main drivers for Revenues performance Revenues ( million) Load factor: 96% of P50 Negative impact of 29m (vs - 6m in 9M16) 1,547 +7% +9% ex-one-off 1,651 Higher output: +14% YoY from +960 MW (Avg. EBITDA) YoY EU +12%; NA +13%; BR +200% Includes + 30m one-off from TEI s residual interest accretion Lower average selling price: -5% YoY EU -2%; NA -9% (in $); BR -42% (in R$) Higher YoY revenues supported by new additions, offsetting the lower price in the period Lower than average wind resource with 29m negative impact 13

14 Opex (excludes Other Operating Income) ( million) -6% Core Opex/Avg. MW ( k) (Supplies & Services and Personnel Costs) -5% Levies & Non-current m YoY of write-offs % per MWh 42.8 Core Opex (1) +6% Core Opex per average MW decreasing 5% YoY boosted by EDPR s control over costs and higher installed capacity (1) Includes Supplies and Services and Personnel Costs 14

15 EBITDA ( million) EBITDA per Region (1) (%) +3% +12% ex-one-offs 1,142 1, : - 103m one-offs YoY: 125m: ENEOP PPA in m: lower YoY write-offs 39m: other including TEI s minority interest accretion (FY15) Spain 21% Portugal 18% 1,171m 1,192m recurring Rest of Europe 16% Brazil 2% North America 43% EBITDA +3% YoY, impacted by 2015 one-offs and benefitting from top-line evolution and cost control (1) Includes hedges gains in Spain, Rest of Europe and US 15

16 2016 Execution Avg. MW in Operation (MW) Load Factor (%, P50) Selling Price ( /MWh) Core Opex per MW ( k) EBITDA (ex-one-offs) ( bn) YE16 Outlook (presented in YE15 results, BP ) % YoY 2015 new MW ENEOP consolidation c.31% new accretive projects wind resource recovery c. 60 per MWh new project mix 95% contracted revenues & efficient hedges -1% CAGR O&M Strategy (M3 & SP) larger portfolio Double digit vs 1.07bn FY15 one-offs adjusted benefiting from accretive projects 2016 Operational Performance +11% YoY competitive projects with contracted revenues 30% in % of P50 scenario due to lower 4Q 61 per MWh low market prices mitigated by hedging strategy ( 40m gain) -5% YoY control over costs and O&M strategy EBITDA +12% YoY ex-non recurring; Reported EBITDA: +3% YoY 16

17 ( million) Adjusted Net Profit ( million) Reported Net Profit (66%) -4% Project Finance Renegotiation Write-offs & Impairments Forex losses (gains) & Forex derivatives Provisions & other Adjust. (inc. ENEOP PPA) (1.4) (137.7) Adjusted Net Profit (4%) On a like-for-like basis and excluding non-recurring, Net Profit was -4% YoY impacted by lower wind resource 17

18 EBITDA Top line performance and cost efficiency 1 LT receivables & cash-adjustments Revenues accrued as LT receivables along with cash adjustments such as realized revenues by TEI (vs accounting), write-offs, provisions 2 Current income taxes Income taxes related to the current period fiscal profits; excludes tax provision/deferred taxes 3 Interests, TEI, fees & derivatives Net interests expenses from financial debt along with institutional partnerships costs and banking fees, forex and energy derivatives 4 Dividends and interests to Minorities Minority interests on cash-flows generated by assets with minority partners; includes net dividends, capital distributions and interests Retained Cash Flow (RCF) Net Cash-flow generated by operations and available to re-invest, distribute and pay debt principal Retained Cash Flow metric captures assets cash generation capabilities and EDPR ability to grow profitable 18

19 Cash Adjust. LT Receivables EBITDA ( million) 1 LT receivables & Cash Adjustments ( 8m) ,171m 8m ( 22m) (2016) Spanish regulatory adjustment on standard GWh (to be received from 2017 till the end of assets regulatory life) ( 18m) (2016) Restricted Green Certificates in Romania (to be sold after Jan-18) + 32m (2016) TEI realized revenues (vs accounting), gains on assets, write-offs, provisions, etc 2 Current income taxes ( 50m) 2016 Current income taxes in line with 2015 Tax provisions/deferred taxes not included ( non-cash ) (1) As of Dec-16 EDPR had 2.8bn of tax losses carried forward (mostly US) 19

20 3 Interests costs, TEI costs, Banking fees and Derivatives ( 295m) 2016 Financial Debt Financial Debt ( 0.8bn) YoY Ongoing reduction in interests costs benefitting from: 3,360m 2.3bn restructured & prepaid since 2015; Net Debt 2,755m Cost of Debt 4.0% (-30bps YoY) Early amortization in Dec-16: $364m bearing 7.7% cost with maturity scheduled for 2018/19; Tax Equity 1,520m Cost of TEI 7.1% in 2016 Fiscal benefits efficient utilization: +$0.7bn in 2016; Benefitting from downward trend on TEI return; Very low interest risk based on long-term fixed rate funding 90% of financial fixed rates; TEI costs fixed per transaction (trend with low correlation to market rates) 20

21 4 Dividends and interests to Minorities ( 119m) 2016 Original proceeds 2.4bn Equity & Shareholder Loans Minorities Return (%) 6.7% Capital Gains of which 319m booked in equity reserves Dividends & Capital paid 0.4bn since 2012 (based on projects Cash Flows and interest stakes) E Attractive average transaction multiple (transaction closing date; all since 2012) 1.5m Avg EV/MW 2016 Average monthly capital invested: 1.8bn Minorities return expected to decrease in 2017 due to cash-flows profile, latest deals at lower yields and higher valuations (latest at 1.7m/MW) (1) Attributable to Equity Partners; includes external net debt and Tax Equity 21

22 2016: From EBITDA to Retained Cash Flow (RCF) and Net Debt & TEI reduction ( million) D% YoY EBITDA 1,171 1,142 1,171 +3% LT receivables & cash-adjustments Current income taxes Interests, TEI, fees & derivatives (8) (110) (93%) (50) (51) (3%) (294) (271) +9% +13% +1,189 (1,050) (44) Includes forex ( 119m), one offs from debt prepayment/restructuring and other (198) Dividends and interests to Minorities (119) (91) +31% Retained Cash Flow (RCF) % 1,171 RCF Asset Rotation & CTG Cash Investments Dividends to EDPR Forex & Other shareholders Net Debt & TEI reduction Operational and financial performance to enhance EDPR growth, decreasing Net Debt and Tax Equity by 597m in

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24 Main Drivers Bipartisan Support = PTC phase-out approved in 2015 by a congress dominated by Republicans; New Treasury secretary supported current scheme in Senate hearings New political landscape. Industry Fundamentals Technology Competitiveness Increasing Demand Wind is a competitive and cheap technology presenting an ongoing decrease of its LCoE (c.26% by ) Increasing demand drivers at State, Utility and C&I 2 ; likely negative impact on CPP rollout but only in the next decade Tax Production Reform Pro-economic growth sector Clear positive impacts on job creation, local economy, industry and infrastructure development Tax Reform pending final framework likely positive A key topic of the new Administration in functions (main consideration is the reduction of the current 35% federal tax rate) Business case for renewables remains strong Wind energy provided 4.7% of the nation s electricity during (1) LCoE source: IRENA Power to Change 2016; (2) Stands for Commercial and Industrial companies; (3) Source: AWEA 24

25 Levelized Cost of Energy Comparison 1 $/MWh Map of Lowest Cost Electricity Resource 2 (unsubsidized; by region) Wind Solar Utility Gas $136 $ $97 $60 $78 $61 $62 $48 $46 $ MW (CoD 2018) 99 MW (CoD 2017) 98 MW (CoD 2017) 175 MW 100 MW (CoD 2017/18) (CoD 2016) 157 MW (CoD 2016/17) 0 Nuclear Coal CCGT Solar PV Wind 250 MW (CoD 2016) EDPR projects (secured ) Expected reduction in wind LCoE of c.26% by 2025 Source: (1) Lazard s Levelized Cost of Energy Analysis from Jan-2017; (2) Based on University of Texas: The Full Cost of Electricity of December

26 29 states + DC 27 GW Coal Retirement until 2030E; 49 GW since 2010 RPS Utilities Renewable Portfolio Standards defined at state level RPS policies cover 55% of total US retail electricity sales 5 states increased quotas in 2016 (OR; IL; MI; NY; DC) Utilities Portfolio Demand officially announced: coal-fired plants being shuttered old & non-compliant w/ environmental constraints; independent of CO2 issues 23% of coal fleet retired or announced prior 2030 >50% PPAs signed 2015 C&I Commercial & Industrial Entities non-utilities companies incl. techs, industrials, cooperatives fixed-long-term price protected from fuel price fluctuations 80 companies have pledged to move to 100% renewable power Source: (1) AWEA 26

27 Job creation Industry >300,000 Jobs on the wind/solar industry; more than coal >500 wind manufacturing facilities in 43 states Wind and Solar jobs growing at a rate 12x faster vs the rest of the US >600 manufacturing plants producing goods for wind & solar across 45 states Local Economy Infrastructure Every state benefiting from wind w/ manufacturing facility, wind farm, or both Expected investments in transmission lines and wind/solar to fuel economic growth Rural areas: land renting income while enable agricultural and livestock farming Increases US energy independence Wind industry creates jobs, economic investment and clean energy across the country Source: AWEA; Business Insider; RTO Insider 27

28 Analyzing the impact at EDPR of a potential reduction of Federal Tax Rate from 35% to 20%-25% Asset Base New Projects P&L Tax Provision Reduction in the annual tax provision +$15m-$30m per year (Net Income) BS Tax Assets & Liabilities Liabilities (on future tax payments) higher than assets (related to tax losses carry forward) One-off positive impact in bottom-line Lower tax rate would reduce 5y-MACRS value and lead to a lower tax equity funding along with investors lower tax appetite However to be potentially offset by A B C 100% capex expensing given the incremental time value benefit Lower funding replaced by corporate debt at a lower cost (USD debt is issued in Spain no impact on changes in interest deductibility) Tax Equity market is attracting new investors every year and enlarging the supply base A tax reform could potentially be overall positive, specially for solid sponsors, but it is still too early to fully assess its impacts 28

29 EDPR target additions in the US (GW) Option could be executed namely through the new Build & Transfer strategy, enhancing pipeline development 1.1 GW secured >55% non-utility >5 GW under continuous commercial efforts to secure PPAs +1.3 Visibility over PTC tax scheme Industry fundamentals driving solid ongoing demand /18 secured To be secured 2020 target additions Additions SH 1 option (100% PTC) Safe Harbor secured EDPR is a strong sponsor with solid balance sheet and clear execution capabilities (1) Safe Harbor 29

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31 Capacity additions +820 MW Higher than 700 MW target; +629 MW in NA; +120 MW in BR; +72 MW in EU Efficiency: Core opex/mw -5% YoY Backed by scale, O&M strategy and cost control 97.7% of availability Cash generation 698m RCF From young portfolio mostly exposed to PPA/FIT EBITDA (+12% adj. YoY) high cash conversion Asset Rotation 550m proceeds Executed 50% of target ( 1.1bn) Transactions executed at attractive multiples Debt optimization 4.0% Cost of Debt (Dec-2016) Benefitting from 2.3bn debt restructured/prepaid Net debt & TEI at 4.3bn EDPR to keep 0.05 dividend per share distribution 31

32 EDPR additions breakdown with visible projects execution Name MW CoD By technology (MW) Wind Onshore Solar PV 25% 10% +3.5 GW >65% Built in 2016 & Secured Built Capacity additions Spain Portugal RoE US Canada Auction projects Ventinveste & other Italian auction France projects ML V, ARS, QB, RBP TC; ML VI Nation Rise <2020E E E 2017E 2017E 2018E 2019E Brazil JAU & Aventura Babilônia E 2018E Growth supported by 1.5 GW of secured projects to be built in , of which 248 MW under construction 32

33 2017 Outlook: Operational and Cash Generation targets Avg. MW in Operation Benefitting from 2016 new capacity additions; 820 MW instated in % YoY EBITDA ( million) ~+10% Load Factor Positive impact from new projects & wind resource recovery (P50) c.32% +5% YoY 1, E Selling price New competitive projects w/ higher load factor; 95% of 2017 revenues fixed not exposed to market prices c. 58 per MWh Retained Cash Flow ( million) % Opex per MW Keeping high efficiency levels; vs target -1% CAGR 15-20E flat YoY -3% CAGR 15-17E E EDPR strategy execution set to deliver solid and profitable growth 33

34 EDPR reiterates its key 2020 BP targets EBITDA CAGR Retained Cash Flow 2020E +8% 0.9bn Update on D&A leading to a positive impact on accounting Net Income from 2017 onwards Adjusted Net Income guidance EDPR s portfolio is composed by young assets across 11 countries 6.5 years of avg. life +16% D&A impact Higher assets useful life based on independent technical assessment 30 years vs. 25 years CAGR (@ 25 years) m per year (1) 2015 EBITDA and Net Profit adjusted by non-recurrent events; EBITDA 2015 Adjusted of 1.07bn; (2) Net Profit 2015 Adjusted of 108m 34

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36 1. Selective growth 2. Operational excellence 3. Self-funded business Prioritize quality investments in our core markets c.700 MW/year Technical expertise to maximize production >97.5% availability Investing in visible growth opportunities 4.8bn investments High visibility on projects w/ LT contracts awarded >65% till 2020 Competitive projects leading to a superior load factor 33% in 2020 Profitable assets generating robust Retained Cash Flow 3.9bn RCF Technological mix initiatives Solar & Offshore Unique O&M strategy to keep lowering Core Opex/MW -1% CAGR Asset Rotation strategy to keep enhancing value growth up to 1.1bn 550m signed c. 600m new 36

37 Increasing Business Plan into a new with stronger capacity additions and technological mix Capacity Additions (MW; %) Capacity Additions (MW; %) Drivers Emerging Markets 20% Brazil Solar PV 10% 10% 65% North America 1 Wind Onshore: fully competitive technology 500 MW/year % Europe 60% United States Europe 15% 700 MW/year Solar PV: Increasing its competitiveness Total of 2 GW capacity additions Total of 3.5 GW capacity additions Projects with long-term visibility & low risk profile Notes: (1) North America includes: US, Canada and Mexico 37

38 Production Tax Credits scheme phase-down EDPR strategy under safe-harbour conditions to maximize projects returns Start of construction Full PTC ($23/MWh 1 ) 80% PTC 1 60% PTC 1 (until 2022) 40% PTC 1 (until 2023) 2021 end of construction 100% of PTCs value if installed until 2020 under safe-harbor conditions (5% capex invested in 2016) Capacity additions (GW) secured under negotiation/identified 1.8 GW % Secured 60% Option to grow 3.1 GW with safe harbor Project Name MW State CoD Hidalgo 250 Texas 2016 Timber Road III 100 Ohio 2016 Jericho 78 New York 2016 Arkwright 79 New York 2017 Meadow Lake V 100 Indiana 2017 Quilt Block 98 Wisconsin 2017 Red Bed 99 Oklahoma 2017 Turtle Creek 200 Iowa 2018 Meadow Lake VI 75 Indiana GW already secured >55% secured with non-utilities (1) PTC value in 2015 of $23/MWh 38

39 CANADA MEXICO 100 MW wind farm in Ontario 20-year supply contract Under development 2019 project 100 MW Nation Rise Wind Farm Completed 200 MW 1 wind farm with 25-year PPA In operation 2016 project 200 MW Eólica de Coahuila All projects with PPAs already awarded Platforms for future growth in promising markets (1) In partnership with Grupo Bal, owner of Industrias Peñoles 39

40 Europe to represent c.15% of EDPR growth plan Portugal Italy Capacity Additions (MW) Completion of Ventinveste projects 20-year feed-in tariff Auction based system with 0.2 GW of projects already awarded France Spain Portugal +0.2 GW +0.2 GW France Spain Italy Identified & pipeline projects feed-in tariff 1 Projects awarded in Jan-16 very high load factor and low capex +0.6 GW Target GW <0.1 GW (1) Projects which requested tariff in 2016 will be receiving a 15y CfD; projects that will request tariff in 2017 are expected to be granted a 20y CfD 40

41 BRAZIL 120 MW Baixa do Feijão project completed in 1Q16 awarded in MW projects awarded in New auctions opportunities 127 MW JAU & Aventura 140 MW Babilônia 120 MW Baixa do Feijão Projects with PPAs already awarded > 45 % load factor mid/high double digit IRR PPA price inflation linked Increased profitability due to higher production and increasing auction prices 41

42 EDPR additions breakdown Different markets dynamics By technology (MW) US: ITC scheme 1 Start of construction United States +3.5 GW % Solar PV Full ITC (30% capex) 2023 end of construction The core growth market boosted by ITC extension 26% ITC Wind Onshore 22% ITC Europe, Brazil & Mexico 10% ITC Solar PV to represent about 10% of capacity additions in ITC scheme in place to benefit Solar technology Developing options based on projects fundamentals (1) ITC - Investment Tax Credit 42

43 UNITED KINGDOM FRANCE 1.1 GW max. Moray Firth 500 MW MW Iles d Yeu et de Noirmoutier Le Tréport Consent granted for offshore wind development; Partnership with CTG (up to 30%) Next step: CfD 1 allocation round 2 Auction: 2Q-3Q 2017 Partnership with Engie allows de-risking and complementary skills Selected in May-14 for the development, construction and operation Offshore projects to represent less than 10% of total investment needs through 2020 and to be developed through partnerships with expected CoD after 2020 (1) CfD Contract for Difference 43

44 Delivering second-to-none metrics based on unique wind assessment know-how to maximize asset value Load Factor (%) Technical Availability (%) Production (TWh) 30% +3pp +10% CAGR 97.6% > 97.5% (P50) 2020E E E Accretive contribution from US, Mexico, Canada and Brazil Predictive maintenance and O&M strategy key to reduce downtime Growth supported by distinctive competences and accretive projects 44

45 Ongoing implementation of innovative power enhancing products Keep high levels of availability Revenue Maximization retrofits add vortex cut-out max uprate power >97.5% Maximizing operating wind farms output (+100 GWh already in 2015) Reduction of downtimes by managing warehousing of critical components Comprehensive O&M strategy to increase efficiency Discipline over G&A costs Cost Control MW ~30% IT Consulting Legal Travelling Successfully implementation of M3 (1) and Self-Perform (higher insourcing of services) Comprehensive cost control management (1) Proprietary model (M3 - Modular Maintenance Model). 45

46 Operating Costs breakdown ( ) Levies & Other Core Opex 1 per MW -1% CAGR Strong focus on efficiency and cost control benefiting from economies of scale and E Core Opex ~80% Core Opex 1 per MWh -3% supported by a superior and higher efficient O&M strategy CAGR 2020E E leading to improvements in efficiency ratios (1) Core Opex - Supplies & Services and Personnel Costs 46

47 Unique O&M strategy at the end of initial contract warranty Portfolio by O&M contract type Modular Maintenance Model (M3) Segregate & insource main maintenance activities lower costs (%; MW) EDPR ISP 1 OEM 2 Self-perform (SP) 100% 90%-70% Full scope ~70% ~50% Insource more activities: preventative, logistics & small correctives EDPR OEM 2 Full Scope M3 & SP M3 & Self perform E Segregating and keeping in-house high value-added activities, minimizing OEM dependency and increasing efficiency Higher exposure to M3 and Self perform driven by full scope contracts expiration (1) ISP - Independent Service Provider; (2) OEM Original Equipment Manufacturer 47

48 EBITDA growth supported by new and accretive capacity additions along with increased efficiency EBITDA growth (vs Adjusted; million) +8% CAGR Expected EBITDA growth drivers MW Addition Efficiency Other Items 1 +11% +0.5% -3.5% CAGR CAGR CAGR 1.07bn New MW in operation Ex-MW growth performance US 10-yr PTCs expiration 2015 adj. 2020E MW with higher profitability Opex efficiency O&M strategy Tariffs and GC expiration (1) Impact from PTCs (Production Tax Credits), GC (Green Certificates) and (FiT) Feed-in Tariffs expiration 48

49 Quality portfolio generating robust RCF 1 Rigorous investment plan to deliver solid returns Retained Cash Flow ( billion) Cumulative for Capex & Financial Investments Onshore + Solar PV Offshore 4.8bn > 90% < 10% 3.9 New Asset Rotation (based on projects with PPAs) Cumulative Asset Rotation (including already signed in 2016) up to 0.6bn 120m/year 1.1 bn EBITDA Interest & TEI costs Minorities Distributions Taxes & Other 2 RCF (1) Retained Cash Flow; (2) Other include Associates and Non-cash items 49

50 1 2 Self-funding Strategy (1) Accelerate value growth Asset Rotation Investment Crystallise projects NPV, capturing value created & Allowing the execution of additional market opportunities with superior returns Operating Cash-Flow Source of Funds Use of Funds Dividends Interests IRR double-digit Re-investing > IRR single-digit Selling and to maintain a self-funding strategy (1) Illustrative and non-exhaustive 50

51 Implied EV/MW Scope Proceeds are re-invested in the development of quality and value accretive projects, enhancing its growth and accelerating value creation 270 MW 49% 30 MW 49% 1,101 MW 36% 30 MW 49% 1,002 MW 34% 100 MW 2 49% 348 MW 191 MW 71 MW 49% of total 664 MW 54 MW 1.3m 1.9m 1 C$3.3m C$3.3m 1 $1.5m $2.3m 1 $3.1m n/a $1.7m $2.4m 1 2.1m n/a 1.7m n/a CTG In 2017 EDPR executed a minority sale transaction with CTG, related to certain assets in Portugal, at a multiple of 1.7/MW (1) Including all cash-flows generated by the projects since inception; (2) also considers an additional 30 MW under development 51

52 Dec-2016 Debt and TEI Breakdown (%) Financial debt by maturity 1 (%) TEI 1.5bn 60% Loans with EDP 47% Variable 7% 31% 40% Gross Debt 3.4bn 33% Other & TEI 53% Fixed 93% 3% 13% 13% Debt and TEI Currency Type Rate Cost of debt at 4.0% and tax equity cost at 7.1% (1) Considers re-profiling after renegotiation of 2018 debt which occurred in the beginning of

53 Supply (investors in number and tax appetite) and demand (renewable growth) has been the main driver 12% 10% 8% Tax Equity Yield 6% 4% 2% 3M Libor 0% Source: Tax Equity Yield EDPR analysis based on discussions with market participants 53

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55 EDPR Market Valuation EV/MW implicit in share price ( m) ( m/mw) 6.4 /share 5,583 + Net Debt (2016) + 2,755 + Inst. Partnerships (2016) + 1,520 + Non-controlling interests (2016) + 1,448 = Enterprise Value = 11, Net Debt 2016 Related to Assets Under Construction = EV installed capacity = 10,

56 Wind already competes with all sources of energy and Solar PV is set to increase its attractiveness Levelised Cost of Energy 1 (LCoE) ( /MWh, 2016) Indexed LCoE 2 ( /MWh) (10%) (22%) Wind Onshore Today Long-lasting technology with decreasing LCoE (17%) (37%) Solar PV CCGT Coal Nuclear Hydro Wind onshore Solar PV Wind onshore is today amongst the cheapest and most competitive technologies Wind offshore Today Set to be a highly competitive technology (1) EDPR Analysis for European Market, NCF: 27%-36% ; Solar PV-one axis 23%-27%; 45%-50%; (2) Analysis for an average LCoE 56

57 Solid growth drivers in addition to its competitiveness : Renewables Worldwide Additions 1 (GW) Environmental concerns New global agreement under COP21 CO 2 reduction targets in EU, US and China Replacement of old/retiring capacity (namely Coal) Wind Onshore Solar PV Utility Economy electrification Solar PV C&I 74 OECD countries: (+) Transports electrification; (-) Energy efficiency Emerging markets: (+) Economic growth and infrastructure need Energy independence Solar PV Residential Wind Offshore GW Renewables 2 Increasing energy imports in most of the developed countries EU imports more than 50% of its demand, while US only 15% Recent events have stressed the need to reduce dependency Regions with EDPR presence account for >65% of Wind and Solar PV (utility) additions (1) IHS Global Renewable Market Forecast (2016); ex-china; (2) Incl. 34 GW of Solar CSP, Biomass, Geothermal, Small hydro & Ocean, not included in the graph 57

58 Europe short term opportunities to escalate medium term, supported by: : Wind and Solar additions in Europe Expected additions in EDPR geographies EU 2030 targets 40% cut in greenhouse gas emissions compared to 1990 levels 27% share of renewable energy consumption 57% 27% Wind Onshore Wind Offshore +24 GW Demand recovery and a common vision in Europe New governance based on national plans and EU coordination Competitive and sustainable energy (to replace retiring plants) 16% Solar PV (utility) Strengthen interconnection and improve energy security Short-term specific growth opportunities Regulation in Europe for renewables is evolving into ex-ante competition systems with long-term contracts (including: France, Italy, Poland, Portugal, Spain, UK) Source: IHS Global Renewable Market Forecast (2016) 58

59 EDPR s strategy for growth in selective countries with strong fundamentals BRAZIL MEXICO Strong renewable electricity demand +10% CAGR Wind the main growth driver +15% CAGR Mainly from wind onshore Good natural resources (load factor) c.50% Load factor Top-notch wind resource 34%-45% Load factor Competitive renewable resources Long-term contracts awarded thru competitive processes Auctions Inflation linked with local funding Auction/PPAs Market recently re-designed Source: IHS Global Renewable Market Forecast (2016) and BNEF 59

60 Wind competes for PPAs mainly in two different segments Wind vs CCGT: Levelised Cost of Energy 1 RPS demand for new renewable builds LCoE $/MWh Wind Load factor 23% Several Sates need to comply with renewable quotas Market is based on REC systems and long-term PPA % 2 Demand for new energy Utilities need new long-term supply contracts In the windiest regions, wind and solar costs can beat the price of a new CCGT US shale gas price range 34% 40% 46% 51% Gas price $/MBtu CCGT load 40% CCGT load 70% EDPR analysis - Wind capex $2.0m/MW; No carbon tax considered; Gas prices are assumed flat in real terms 60

61 Wind Energy competes with the most efficient conventional technology LCoE /MWh Recent oil prices Wind vs CCGT: LCoE Wind load factor 21% 23% 25% 29% 34% Oil price $/bbl Wind Energy Costs are unrelated to commodities, providing greater visibility Legend: CCGT load 23% CCGT load 57% (1) Source: EDPR Analysis, LCoE Levelised Cost of Energy 61

62 ES PT RoE NA BR Total Net MW , GW 2016 average life (years) Attributable Net Debt + TEI 1-11m 163m 473m 74m 721m Average EV per MW of 1.5m/MW (at transaction closing) considering all minorities sales executed since 2012 (1) Attributable to Equity Partners; includes external net debt and Tax Equity 62

63 IR Contacts Rui Antunes, Head of IR, P&C and Sustainability Maria Fontes Pia Domecq Paloma Bastos-Mendes Phone: Fax: Serrano Galvache 56, Edificio Olmo, 7 th Floor 28033, Madrid - Spain Site: Link Results & Presentations: EDP Renováveis online Mar 8 th : Mar 9 th : Mar 10 th : Mar 14 th : Mar 15 th : Next Events Roadshow London Roadshow New York Roadshow Boston Eiffel Conference London Roadshow Dublin

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