EDP - Energias de Portugal, S.A. informs: Results 2022

Results Handout 2022

PORTUGAL Sabugal Hybrid

Lisbon, March 1st

2022

Results

Webcast details

Webcast: www.edp.com

Date: Thursday, March 2nd, 2023, 08:00 am (UK/Portuguese time)

Lisbon, March 1st, 2023

Content

Main highlights for the period	2
Consolidated Financial Performance
EBITDA Breakdown	3
Profit & Loss Items below EBITDA	4
Investment activity	5
Cash Flow Statement	6
Consolidated Financial Position	7
Net Financial Debt	8
Business Segments
Renewables	10
Electricity Networks	15
Client Solutions & Energy Management	18
Income Statements & Annex
Income Statement by Business Segment	22
Quarterly Income Statement	23
Generation Assets: Installed Capacity and Production	24
Electricity Networks: Asset and Performance indicators	25
Financial investments, Non-controlling interests and Provisions	26
Share performance	27

EDP - Energias de Portugal, S.A. Headquarters: Av. 24 de Julho, 12 1249 - 300 Lisboa, Portugal

Main highlights for the period

Key Operational Data

Installed capacity (MW)

Weight of Renewables (1)

Production (GWh)

Weight of Renewables (1)

Scope 1 & 2 Emissions Intensity (gCO2/kWh) Customers supplied (thousand of contracts) Customers connected (thous.)

2022

26,187

79%

61,351

74%

160

9,049

11,583

2021

24,610

80%

59,784

76%

176

9,308

11,427

• %

6%

-

3%

-

-9%-3% 1%

• Abs.
  +1,578 -1p.p.
  +1,567 -2p.p.

-16-259 +156

EDP's recurring net profit increased 6% in 2022 to €871m, supported by the positive performance of renewables activity in Europe, and electricity networks in Brazil. The extreme drought in Portugal in the 12 months period ending in Sep-22 (hydrological year 2021/22, the 3rd driest since 1931) penalized EDP's 2022 results, despite the strong rainfall levels in 4Q22, which allowed the recovery of hydro reservoir levels above-average (~70%), improving the prospects for hydro generation in the beginning of 2023.

Non-recurringcosts amounted to -€192min 2022, including mostly impairments in thermal power plants in Brazil and Iberia. Including these non-recurring costs, reported Net Profit 2022 increased 3% to €679m. This result continued to be strongly penalized by the weak

performance of Portugal, which recorded a negative net profit of -€257m,following the extreme drought in the first nine months of the

year and the impairments on thermal assets, recorded by the end of the year.

Gross Investments doubled to €6.7 Bn in YE22, of which 96% allocated to renewable energy and electricity networks, reinforcing EDP's commitment to the energy transition. In renewables, in the last 12 months, EDP has added +2.2 GW of capacity, presenting a record capacity under construction of 4.0 GW. During 2022, EDP strengthened its leading position in the global renewables

Income Statement (€ million) Gross Profit (6)

OPEX

Other operating costs (net) (6)

Operating costs

Joint Ventures and Associates (2)

EBITDA

EBIT

Financial Results

Income taxes & CESE (3)

Non-controlling Interest

Net Profit (EDP Equity holders)

2022	2021	∆ %
6,121	4,835	27%
1,874	1,555	21%
(38)	(335)	89%
1,837	1,220	51%
239	108	121%
4,524	3,723	22%
2,530	1,931	31%
(910)	(511)	-78%
450	315	43%
491	448	10%
679	657	3%

• Abs.
  +1,286

+319

+298

+617

+131

+800

+599

-399 +135 +43

+22

landscape, establishing a growth platform in APAC, through the acquisition of Sunseap, and reinforced its presence in Europe, through the acquisition of Kronos' portfolio of developing solar projects, mainly in Germany. 2022 is also marked by the bet on new investment opportunities in clean technologies, with the inauguration of the floating solar park in Alqueva, the largest in Europe in reservoir, and the production of the first green hydrogen molecule, in Brazil.

Recurrent EBITDA increased 21% to €4,522m in YE22, a 15% increase excluding FX, benefitting from a strong growth of EDP

Renováveis and electricity networks in Brazil.

Recurring EBITDA in Hydro Generation, Client Solutions and Energy Management increased 33% to €869m. The increase in thermal generation in Iberia, mostly in Spain, the higher availability of conventional generation in Brazil, as well as the positive results from energy management in the 4Q22, more than compensated the negative impact from the drought in Portugal, that generated a 3.5 TWh deviation in hydro generation in Iberia vs. average, in a context of high wholesale energy prices.

EDP Renováveis presented an EBITDA growth of 23% (+€397m YoY) to €2,157m, supported by increased wind resources (+3 p.p. YoY),

higher average installed capacity (+9% YoY), positive FX impact and higher average selling prices.

Key Performance indicators (€ million) Recurring EBITDA (4)

Renewables

Networks

Client solutions & EM

Other

Recurring net profit (4)

2022	2021	∆ %
4,522	3,735	21%
2,538	2,295	11%
1,504	1,340	12%
488	119	312%
(8)	(19)	57%
871	826	6%

• Abs.

+787

+242

+164

+370

+11

+46

Recurring EBITDA in the electricity networks segment registered a +12% growth, reaching €1,504m, mainly driven by the 44% increase in networks EBITDA in Brazil, reflecting the update to inflation of regulated revenues, the commercial operation of four transmission lines, as well as the positive FX impact in the period.

Net financial costs increased to €910m, with the average cost of debt reaching 4.4%, mainly penalized by rising inflation in Brazil, which more than doubled the cost of debt in BRL. When excluding debt denominated in BRL (14% of consolidated debt), average cost of debt increased from 2.5% to 2.7% in YE22.

In YE22, net debt totaled €13.2 Bn, a €1.7 Bn increase, reflecting the acceleration of investment, especially in renewables and electricity networks, as defined in the 2021-2025 strategic plan, and the appreciation of the Brazilian Real and the U.S. Dollar. EDP ended 2022

Key Financial data (€ million)

Dec-22

Dec-21

• %

• Abs.

with the FFO/Net Debt ratio at 20%, demonstrating its commitment to maintaining a sustainable level of leverage.

The Executive Board of Directors will propose to the General Shareholders' Meeting, the distribution of a dividend for the year 2022 in the

Net debt	13,223	11,565	14%	+1,657	amountof€0.19pershare, in line with the previous year and with the dividend policy established in our 2021-2025 strategic plan.
Net debt/EBITDA (x) (5)	3.4x	3.5x	-4%	-0.1x
FFO / Net Debt	20%	21%	-2%	0p.p.
(1) Including Wind, Solar, Hydro and mini-hydro capacity; (2) Full details on page 26; (3) CESE: Extraordinary contribution from the energy sector; (4) Excluding one-off impacts as per page 3 (EBITDA) and page 4 (Net profit); (5) Net of regulatory receivables; net debt excluding 50% of hybrid bond issues (including interest);
Based on trailing 12 months recurring EBITDA and net debt excluding 50% of hybrid bond issue (including interest); Includes operating leases (IFRS-16); (6) Social Tariff reclassified from Gross Margin (€75m in YE22 and €72m in YE21), not adjusted in YE21 amounts.	- 2 -

EBITDA Breakdown

EBITDA (€ million)	2022	2021	∆ %	∆ Abs.
Renewables	2,528	2,294	10%	+234
Wind & Solar	2,157	1,760	23%	+397
Hydro Iberia	184	358	-49%	-174
Hydro Brazil	186	176	6%	+10
Electricity Networks	1,506	1,327	13%	+179
Iberia	891	900	-1%	-9
Brazil	615	427	44%	+188
Client solutions & EM	486	122	297%	+364
Iberia (2)	347	27	-	+320
Brazil	147	99	49%	+49
Other	4	(20)	-	+24
Consolidated EBITDA	4,524	3,723	22%	+800
- Adjustments (1)	1	(12)	-	-
Recurring EBITDA	4,522	3,735	21%	+787

1Q21	2Q21	3Q21	4Q21	1Q22	2Q22	3Q22	4Q22
445	562	425	862	405	644	565	913
269	385	263	843	394	582	507	675
137	144	107	(30)	(34)	14	9	195
40	33	55	49	45	48	50	43
310	271	360	387	362	370	404	370
214	197	262	226	219	227	226	220
95	73	98	161	144	143	178	150
107	(4)	36	(16)	(71)	286	96	175
77	(28)	0	(22)	(105)	250	62	140
30	24	38	7	35	35	36	41
2	(1)	(5)	(16)	13	(15)	(14)	20
864	828	815	1,216	710	1,285	1,052	1,478
21	(6)	(18)	(8)	-	0	(0)	1
844	834	833	1,224	710	1,285	1,052	1,477

4Q YoY

• % ∆ Abs.

6% +51 -20% -168

• +225
  -12%-6
  -5%-18
  -3%-7

-7%-11

• +192
• +162
• +35
• +36

22% +262

• +9

21% +253

EBITDA 2022

Other (2)

9%

Brazil

25%

€4.52 bn 51%

Iberia

14%

North

America

89% Energy Transition

Reported EBITDA in 2022 increased 22% to €4,524m, without significant one-off impacts. ForEx had a positive impact of +€237m YoY mainly due to the 17% BRL appreciation vs. the Euro. 89% of EBITDA was derived from Energy Transitionrelated activities.

RENEWABLES (56% of EBITDA, €2,528m in 2022) - EBITDA increased by 10% YoY (+€234m YoY) as (i) the benefits from portfolio expansion (avg. MWs installed +9% YoY), (ii) higher average selling price (+21% YoY), (iii) recovery of wind resources (+3p.p. YoY) namely in North America (v) exchange rate tailwind, namely USD and BRL (+€89m YoY),

1. and last year's Polar Vortex in February in US, most significantly affecting the Ercot/Texas assets (c.-€35m); more than offset the weak performance of Hydro Iberia mainly driven by poor hydro resources throughout the year coupled with pre-hedged volumes and increased electricity prices (-37% vs. LT average in Portugal in 2022 vs. -7% in 2021), despite some recovery in 4Q22.

ELECTRICITY NETWORKS (33% of EBITDA, €1,506m in 2022) - Excluding one-offimpacts (€1m in 2022 vs. -€13min 2021), Recurring EBITDA increased 12% YoY (+€164m), mainly explained by: (i) €188m increase in the Brazilian networks segment mainly reflecting the regulated revenues indexation to inflation (€90m), a stronger BRL (+€90m) and a €32m increase in the transmission's EBITDA from RAP indexation to inflation and new lines commissioned which more than offset the de-consolidationimpact and gains associated with the asset rotation of the transmission lines in Dec-21(€37m contribution in 2021 and €46m gain). In Iberia, EBITDA was broadly stable YoY as the positive impact from higher Portuguese 10Y bond yields on the RoRAB and the benefits from integration of Viesgo were compensated by a normalizationof OPEX, in Portugal, and "Lesividad" provision reversal (€47m), booked in 2021.

CLIENT SOLUTIONS & ENERGY MANAGEMENT (11% of EBITDA, €486m in 2022) - Excluding the one-offimpacts (- €6m YoY, from net gain of €4m in 2021 to net loss of €2m in 2022), Recurring EBITDA increased €370m YoY to €488m, including €18m FX impact stemming from a stronger BRL.

On an integrated and recurring basis, Hydro and CS&EM Iberia EBITDA increased 40% to €535m in 2022 (+€151m

YoY) impacted by (i) an increase in thermal activity, namely coal, (ii) positive impact on the energy management results driven by a reduction in energy prices by the end of the year and (iii) a normalization of supply conditions vs. 2021. These were mitigated by (i) The 3rd driest hydrological year (Oct-21 to Sep-22) of the past 90 years further aggravated by the context of very high wholesale electricity prices (total hydro production shortfall in 2022: 3.5 TWh normalized year vs. 3.3 TWh as of 9M22), despite the strong surge in hydro resources particularly in December (67% above LT. average); and (ii) an increase in gas sourcing costs as a result of volatile and uncertain gas market environment.

1. Non-recurringadjustments in 2022: €1m, including net gain related with portfolio optimization in LatAm (+€4m) and HR restructuring costs (-€3m).

(1) Adjustments for one-off impacts, described above(*); (2) Excludes namely Poland, France, Italy (-€7m in 2022).

- 3 -

Profit & Loss Items below EBITDA

Profit & Loss Items below EBITDA (€ million)	2022	2021	∆ %	∆ Abs.
EBITDA	4,524	3,723	22%	+800
Provisions	15	61	-76%	-46
Amortisations and impairments	1,979	1,732	14%	+247
EBIT	2,530	1,931	31%	+599
Net financial interest	(726)	(549)	-32%	-178
Capitalized financial costs	46	91	-50%	-45
Unwinding of long term liabilities (1)	(210)	(184)	-14%	-26
Net foreign exchange differences and derivatives	(39)	28	-	-68
Other Financials	19	102	-81%	-83
Financial Results	(910)	(511)	-78%	-399
Pre-tax Profit	1,620	1,420	14%	+200
Income Taxes	398	262	52%	+137
Effective Tax rate (%)	25%	18%
Extraordinary Contribution for the Energy Sector	52	53	-3%	-2
Non-controlling Interests (Details page 26)	491	448	10%	+43
Net Profit Attributable to EDP Shareholders	679	657	3%	+22

4Q21	1Q22	2Q22	3Q22		4Q22
1,216	710	1,285		1,052	1,478
7	2	1		7	5
634	386	414		409	770
575	322	870		636	703
(153)	(156)	(208)		(163)	(199)
22	6	7		15	17
(47)	(54)	(57)		(51)	(48)
17	17	32		(2)	(86)
6	12	14		7	(15)
(155)	(173)	(211)		(196)	(330)
421	148	659		440	373
25	23	120		85	170
6%	16%	18%		19%	46%
2	50	0		1	0
248	151	156		143	41
146	(76)	383		211	161

	4Q YoY
∆ %	∆ Abs.
22%	+262
-32%	-2
22%	+136
22%	+128

-30%-46

-20%-4

-3%-1

• -103
• -21

-113%-175

-11%-48

584% +145

-71%-1

-83%-207

10%+15

Provisions in 2021 include a non-recurring provision of €48m booked in 3Q21 on a contingency related with the ongoing court case on a fine decided by the Portuguese competition authority regarding ancillary services in 2009-13. Excluding

this non-recurringitem, other provisionsamounted to €13m in 2021.

Amortisations and impairments increased by 14% YoY, to €1,979m, a figure penalized by a higher impact of impairments +€103m YoY to €335m in 2022 (€236m mostly related with thermal assets in Brazil, €45m in Iberian thermal assets; €54m due to a delay in the construction of two wind projects in Colombia with a total capacity of 500MW). Excluding impairments, amortisations increased +€144m reflecting essentially capacity additions in the period, and the forex impact (€109m YoY).

Net Financial results amounted to -€910min 2022 penalized by -€58mof Forex. Net financial interests increased 32% YoY to -726m in 22, mainly driven by higher gross debt (+€3Bn) and higher cost of debt indexed to inflation in Brazil.

Average cost of debt increased to 4.4%, penalized by all currencies but mainly due to the increase in inflation in Brazil that more than doubled the cost of debt of EDP in that country. Excluding BRL, cost of debt increased ~20 bps from 2.5% to

2.7%.

Income taxes amounted to €398m, representingan effective tax rate of 25% in 2022. This line was penalized by Italy's clawback (€35m) and Pecém's impairment non-deductability for tax purposes.

Non-controllinginterests increased YoY to €491m in 2022, including: (i) €362m related to EDPR, mainly explained by better performance in projects with minorities and higher free float; (ii) €84m related to EDP Brasil on the back of the strong

growth in net profit and the impact of BRL appreciation, partly mitigated by an increase of EDP stake in EDP Brasil after buyback program (details on page 26); and (iii) 45m mainly attributable to the 25% minority stake at the electricity networks

business in Spain.

Net profit increasedto €679m in 2022, increased +3% yoy on the back of growth of EDPR and Networks in Brazil.

1. Adjustments and non-recurringitems impact at net profit level: In 2022 -€192m, including (i) impairments in thermal assets and other (-€154m) and EDPR(-€41m); and (ii) net gain related to portfolio optimization in LatAm (+€6m) and HR restructuring costs (-€3m).In 2021 -€169m, including (i) impairments, mostly CCGTs in Iberia (-€164m), (ii) acquisition of debt in minority stake in Spain (+€36m); (iii) provision on competition authority penalty (-€33m), (iv) gain from CIDE disposal (+€21m),(v) debt buyback prepayment fees (-€19m), (vi) HR restructuring costs (-€10m).

1. Includes unwinding of medium, long term liabilities (TEIs, IFRS-16, dismantling & decommissioning provision for generation assets, concessions) and interest on medical care and pension fund liabilities.
2. • 4 -