EDP Renováveis1H15 Results

July 29th, 201515:00 CET | 14:00 UK/Lisbon

www.edpr.com

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Agenda

Highlights of the periodI

1H15 ResultsII

Outlook and ConclusionsIII

3

Executing a solid strategic agenda

Quality assets

• Output of 11 TWh on the back of strong operational excellence with 97.4% availability levels; 1H15 registered a weaker load factor YoY and was 3% below the P50 scenario

• Avg. selling price improved 11% YoY due to increase in Spain, US and FX translation and stable pricing on the back of PPA/FiT and effective hedging strategies

• O&M strategy continues to deliver higher efficiency (Adj. Opex/MW ex-FX -7% YoY)

Selective and profitable growth

• EBITDA of €548m (+11% YoY) reflecting higher prices and efficiency and Net Profit of €69m (-14% YoY) impacted by wind conditions in 1H15 vs. 1H14 and one-offs

• Capacity under execution in 2015 totals 661 MW (105 MW added in 1H15 and 556 MW under construction) and is ahead of target additions (~0.6 GW)

• 0.9 GW for ST growth (2016-17) with PPA/FiT contracts in US, EU and Brazil/Mexico

Self-funding business model

• €404m of OCF from a portfolio mostly exposed to PPA/FIT regimes and with an expected remaining lifespan of at least 20 years

• Ongoing execution of Asset Rotation ($378m received in 1H15) and studying the development of a complementary Asset Rotation program (YieldCo)

• Net Debt increased to €3.5bn (+€0.2bn vs. Dec-14) due to FX translation (+€0.2bn)

4

1H15 Results

9.1 GWSpain26%

Portugal13%

Rest of Europe

15%

North America

45%Brazil

1%

EDPR has today a portfolio of 9.1 GW of first-class assets with average 5.6 years old

Installed Capacity1

(EBITDA MW + Equity Consolidated)

661 MW under execution in 20152015 execution above expectations: 105 MW added in 1H15 and 556 MW currently under construction

Notes: 1) Installed capacity includes EDPR’s Equity consolidated: 533 MW of EDPR’s interest in ENEOP, and equity stakes of 174 MW in Spain and 179 MW in the US.Includes 82 MW of Solar PV. 2) Refers only to EBITDA MW

UnderConstruction

+300 MW+99 MW

+136 MW+6 MW

+120 MW-

1H15Additions

+556 MW+105 MWAverage Installed Capacity2 increased +6.8% YoY

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EDPR Technical

Availability

Recurrent premium load factor reflecting distinctive core competences

1H15

33%

29%

26%

97.4%

31%

-1.5pp

-3.9pp

-2.4pp

-2.6pp

∆% YoY

0.0pp

1H14 vs. average

103%

110%

107%

101%

Although the 1H15 had a wind resource below the expected scenario (P50),EDPR continues to achieve load factors above market

1H15 vs. average

90%

104%

97%

92%

+5% +5%

-4%

+2%

+12%

+0%

-7%

-3%-3% -3%

1Q 2Q 3Q 4Q

2014 2015

Load Factor and Technical Availability

2013

EDPR Quarterly Load Factor vs. Quarters’ Average(%)

7

Evolution of electricity output impacted by outstanding wind resource in 1H14

Electricity Production(TWh)

Electricity Output breakdown: 51% in Europe, 49% in US and 1% in Brazil

11.0 +0.3 -0.7 10.8

1H14 CapacityGrowth

LoadFactor

1H15

-1%

Outstanding load factor in 1H14

-0.4%

-2%

-8%

TWh% YoY

Stable in Europe YoY with strong output growth in RoE +24% YoYmitigated by the lower wind resource in Iberia

Low wind resource in Central and Western regions, which offset the effect from capacity additions

Lower load factor YoY

8

EDPR Price Evolution(€/MWh)

€57.7 €64.2

1H14 1H15

Selling price increased +11% YoY, with the active hedging strategy offsetting impact of lower output

+11%

Selling price recovered from depressed levels in Spain and in US (1H14) and boosted by FX conversion

€82.2 +3% +15% YoY higher price in Spain;1.2 TWh sold under hedges

$52.1 +3%Higher PPA prices (+0.4% YoY);Non-PPA: $46/MWh (+22% YoY) REC sales & effective hedgings

R$369 +7% Inflation adjustment

1H15 % YoY

+4% ex-FX

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693773

1H14 1H15

Revenues totalled €773m (+11% YoY) on the back of better prices and dollar strength

Better pricing in Spain and US driving the increase in Revenues

Quality assets: +492 MW (EBITDA) YoYLoad factor: 31%

High availability: 97.4%

Lower Electricity output: -1% YoY

EU -0.4%; NA -2%; BR -8%

Higher average selling price: +11% YoY

EU +3%; NA +3%; BR +7%

Revenues (1)

(€ million)Main drivers for Revenues performance

+11%

(1) Do not include gains with hedges accounted in financial results. 10

21.2 22.1

1H14 1H15

214241

1H14 1H15

O&M strategy and cost control continue to deliver sound results

Opex (excludes Other Operating Income) (€ million)

Operating costs per average MW ex-FX decreased 7% YoY

+11%

+13%Adj. Opex/MW (ex-Levies & Write-Offs) (€k)

Adj. Opex(1)

Levies &Write-Offs

Notes: (1) Opex excluding levies and write-offs.

+4%

+16%

+4% ex-FX

-7% ex-FX

-4% ex-FX

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€548m

EBITDA increased +11% YoY, with price recovery more than compensating the lower output YoY

EBITDA(€ million)

EDPR operation in North America contributed with 43% of 1H15 EBITDA

495548

1H14 1H15

+11%

EBITDA per Region(%)

Spain23%

Portugal13%

Rest of Europe

20%

North America

43%Brazil1%

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Comparison of financial metrics in 1H15 vs. 1H14, impacted by significantly different wind resource

Impact in EBITDA from weaker wind resource also impacts the bottom linegiven the fixed cost structure below EBITDA

1H14: 7% above P50

1H15: 3% below P50

Different production mix and

different performance vs. P50

1H15 production

was 1% below 1H14

Wind

resource

YoY

Analysis

EU & US

Analysis

EBITDA impacted by deviations on wind resource vs. P50

+40

-11

1H14vs. P50

1H15vs. P50

€ million

€51m YoY variance on load factor performance

13

69

292

548

43

37

143

255

Net profit in the period totalled €69m

1H15 EBITDA to Net Profit(€ million)

D&A

EBIT

Taxes

Minorities

FinancialResults

% YoY

EBITDA

New capacity YoY (+492 MW) and FX+15%

In line with EBITDA performance+7%

Interests cost -14% YoY (ex-FX); Financial results+0.2% YoY (ex-FX & one-offs); Associates -46% YoY+34%

Effective Tax Rate of 24.5%-23%

Strategic partnership and Asset Rotation program +14%

In line with top-line and ongoing efficiency+11%

Net Profit Net Profit totalled €69m-14%

(1)

Notes: (1) Includes Share of profit of associates. 14

EDPR started to apply IFRIC 21 in the 1H15

IFRIC 21 changes the timing of recognition of liabilities from levies(now recognized in the moment that triggers the recognition of liability; previously rateably over the fiscal year)

1H15 Result

Pre-IFRIC 21 IFRIC 21 Reported

Revenues

EBITDA

EBIT

EBT

Net Profit

1H14 Results

Reported IFRIC 21 Restated

-693 693

-11.9506 495

-11.9284 273

-11.9178 166

-6.787 81

-773 773

-15.6563 548

-15.6308 292

-15.6165 149

-8.077 69

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Diversified source of funds aligned with EDPR self-funding strategy

1H15: Cash Flow(€ million)

OperatingCash-Flow

Div. &Cap. Dist.

Asset Rotation and alternative funding sources as enablers of value added growth program

AssetRotation

InterestCosts2

TaxEquity

TaxEquity

Increasein Net Debt

Forex &Other

CTG &EDPR BR

404

(190)

316

54139

(669)

(103)(87)

(91)

(153)

Investments1

Notes: (1) Capex, PP&E suppliers and other investment activities; (2) Net interest costs (post capitalisation)

• €56m to minorities (dividends and capital distributions)

• €35m to EDPR shareholders (dividends)

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Outlook and Conclusions

EDPR with visible drivers to deliver strong performance in 2015, even with weaker wind…

Average Selling Price(€/MWh)

EBITDA(€m)

Electricity Output(GWh)

1H15 generation decreased -1% YoYdue to strong 1H14 and 3% below

expected load factor in 1H15

Average Selling price improved+11% YoY on the back of

Spanish and US price recovery and active hedging strategy

EBITDA is +11% YoYwith a stable 71% EBITDA margin

Electricity output expected growth of +10-13% YoY on the back of 2014

new MW and ENEOP consolidation(pending regulatory approvals for asset

splitting)

Average Selling price with positive evolution expected based on

hedges in Spain and in US

EBITDA to grow at solid double digit benefiting from high efficiency levels

and USD strength

1H15 OperationalPerformance…

…in line with YE15 Outlook(presented in YE14 results)

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…and the re-negotiation of debt facilities to show tangible results ahead

Favourable debt market conditions also allows EDPR to extend the average debt maturity

Corporate Loans€1.2bn

Project Finance€0.2bn

EDPR is being able to secure better financing conditions

Two re-negotiations of debt with EDP already executed (Mar’15 and Jul’15)

Longer average maturity and lower interest cost

Spain

Romania

• Re-negotiation of a Project Finance agreement executed in 2012

• 125 MW installed between 2009 and 2012

• Restructuring of financing for 57 MW

• Replacing PF (executed in 2012) with Corporate loans

Positive impact in P&L c.€3m (pre-tax) on a FY basis2Q15 impacted by €8m (write-down of deferred costs on BS)

Positive impact in P&L c.€26m (pre-tax) on a FY basis(prorated in 2015)

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On the other levers of self-funding strategy, EDPR is also committed to maximize shareholder value…

Increased competition from Institutional Investors is driving down targeted yields

Ongoing appetite from investors for new structures of wind energy assets to benefit EDPR shareholders

New Investors (including from new business sectors) driving down targeted yields for new transactions

EDPR to continue to tap the market to capture improved shareholder value

Tax Equity

Asset Rotation

$378m: settlement of transaction with Fiera Axium and agreement with DIF III (wind and solar assets in US)

$117m: institutional equity financing in relation to a new 99 MW wind farm in California, US

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…and is studying the development of acomplementary Asset Rotation program…

…allowing to monetize quality European assets and re-invest in the development of new accretive projects

“(…) EDPR to evaluate alternatives to efficiently monetise and rotate its assets, focusing on the particular possibility of establishing a YieldCo composed by European wind generation assets to be listed on the Spanish stock exchange “

Notification to the Stock Market Exchange Regulator, June 22nd 2015

Monetize Quality Assets Re-invest in accretive projects

Low cost of capital in Europe

Strong appetite from investors forassets with stable cash-flows

EDPR is a leading worldwide renewable player with quality assets and a solid track record

Quality options in the short-term(US and selective EU markets)

Stronger growth on the medium-term(EU targets and US Clean Power Plan)

High competitiveness from renewable technologies (wind and solar) to further enhance growth in EDPR markets

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Conclusions

On track to deliver 2015 new projects with105 MW added in 1H15 and 556 MW under construction

Premium assets and high efficiency levels continue to deliversound metrics even in periods with lower than expected load factor

Improved pricing environment on the back oflow risk assets with PPA/FiT contracts complemented with an effective hedging strategy

Debt-renegotiation with EDP and 3rd parties, taking advantage of favourable debt market conditions, to positively impact P&L while extending maturities

Sound executing of the 2017 strategic agenda while analysing the opportunity of acomplementary Asset Rotation program to enhance the growth profile

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IR Contacts

Rui Antunes, Head of Planning & Control and IRFrancisco BeirãoMaria FontesPaloma Bastos-MendesFilipe Lopes

E-mail: ir@edpr.comPhone: +34 914 238 402Fax: +34 914 238 429

Serrano Galvache 56, Edificio Olmo, 7th Floor28033, Madrid - Spain

EDP Renováveis online

Site: www.edpr.com

Link Results & Presentations:www.edpr.com/investors

Next Events

9M15 Results: October 28th