Slide 1: EBITDA Growth: +20% YoY based on organic growth
0 EBITDA Growth: +20% YoY based on organic growth Turnaround of market activities: Focus on returns, clients and flexibility 121% increase of wind power installed capacity; 18% reduction of CO2t/GWh Efficiency improvement / Maintenance of Sound Base of Regulated Activities EPS Growth: +2% YoY: high
Slide 2: In an adverse environment, EDP achieved strong EBITDA growth
Wind: Closing of Horizon Acquisition in Jul-07, Fully Consolidated in 3Q07 New Hydro Projects in Portugal: Several Positive Developments CCGTs & Gas Sourcing: Partnership with Sonatrach Signed (Oct-07) Extension of debt maturity profile: USD2bn long term bond issue in Oct-07 2 In an adverse environm
Slide 3: Growing organically: pro-forma EBITDA increased by 19.8%
!"#$% ! & ' Growing organically: pro-forma EBITDA* increased by 19.8% EBITDA Breakdown (€ million) 9M2006 9M2007 ∆ 07/06 LT Contracted Brazil Generation 21% Iberian Market ** 1,399 1,587 13% 29% Generation & Supply 844 897 6% Wind Wind (Europe & USA) 105 147 40% 7% Distribution 410 474 16% Liberalis
Slide 4: Low prices in 2007, increasing for 2008
" )' & Weighted Average Realized Price in Spot Market (OMEL) Hydro coefficient Spanish Pool price: - 33% € / MWh Market splitting: 75 Portugal 1. Maintenance works on interconnection grid Spain 0.90 • Iberian Demand growth: +1.6% 54.6 2. Unavailability of coal plants 0.72 44.8 0.65 0.56 • Installed
Slide 5: EDP showed the highest load factors; well timed contracting of electricity
# " & In 9M07 and 3Q07 EDP showed the highest load factors both in CCGTs and coal plants CCGT’s Load Factors in the Iberian Market * Coal Plants Load Factor in the Iberian Market * 9M07 9M07 3Q07 85% 84% 3Q07 79% 79% 75% 76% 73% 71% 64% 58% 62% 56% 56% 56% 53% 48% 32% 28% Peer1 Peer2 Peer3 Peer4 Pee
Slide 6: Efficient generation portfolio and strong retail platform both hedged
, - * / . ) * ' ) & Generation & Wholesale Clients & Wholesale (energy sources) (energy sold) Variable Cost Selling Price € / MWh € / MWh EBITDA (€m) 28 17.4 17.4 54 9M07 % Chg. 0.2 Market 1.9 0.9 Wholesale €286 +30% Forward Nuclear 0.9 Market Hydro 0.9 6.2 Wholesale for 4Q07: Spot Coal 7.9 Market 7
Slide 7: 2008 expected output and electricity sales contracted
' ( 0 . ). 1 Expected Output Electricity Sales (TWh) 2008 (TWh) (weight %) (weight%) Hydro 5% For the 65% volume not contracted: • Significant part of coal cost already locked-in • Flexibility to play market volatility namely with CCGTs 50% CCGT Not • Potential to increase retail volumes in 2H08 Con
Slide 8: CO2 emissions coverage 2008-2012; Sonatrach Partnership highlights
(+ 01 012 2008-2012 coverage of CO2 emissions (%) 100% 78% Investment cost significantly below market price of CO2 allowances CERs 10% 1% 3% 8% 10% Needs Expected free Carbon funds CDM projects Purchased Exposure Potential to allowances allowances buy additional CERs EDP’s 8% exposure can be fully c
Slide 9: CCGTs: A competitive growth strategy at controlled risk
((* # $ " ( ) ) EDP’s CCGT Installed Capacity (MW) Spain Castejón Soto 4 Lares 1&2 Portugal Dec-07 3Q08 3Q09 840 3,229 On time • Reserve margin in Portugal is 840 lower than in Spain and on 1,213 schedule • Turbines well timed procured: 418 No building cost increase 1,563 408 • Competitive gas procu
Slide 10: Wind installed capacity increased 121% YoY to 2,732 MW
* ' EBITDA Growth: +20% YoY based on organic growth Turnaround of market activities: Focus on returns, flexibility and clients 121% increase of wind power installed capacity; 18% reduction of CO2 t/GWh Efficiency improvement / maintenance of sound base of regulated activities 18 4 3 ' " ( ) 1 Wind i
Slide 11: Wind power output, gross profit and EBITDA
4 Wind Power Output Gross Profit EBITDA GWh € million € million 88% 33% 2,450 40% 192 144 147 1,301 105 9M06 9M07 9M06 9M07 9M06 9M07 • Increase of load factors and capacity more than compensated lower pool price in Spain • First time consolidation of Horizon in 3Q07: Contribution of €7m at EBITDA l
Slide 12: High level of turbine needs already contracted for 2008 and 2009
$3 ' 2 4 Gross MW Pipeline (as of Sept-07) Installed Capacity Under TOTAL Construction Development WIND 2,732 12,924 1,194 11,730 Portugal 392 756 56 700 Spain 1,325 2,059 499 1,560 Other Europe 75 494 24 470 USA 941 9,615 615 9,000 High quality pipeline will support EDP’s growth in wind power in th
Slide 13: EDP plans to increase hydro capacity in Iberia by 64%
' ) 3 9 3 +64% MW +25% 509 6,910 928 1,079 4,404 Current Projects launched Repowering New plants Target capacity in 2007 projects Projects Iberia Hydro plant MW Capex (€ M) Status Expected entry into service New/Repower. Picote II 231 134 Under construction Repowering 2011 Bemposta II 178 130 Tender
Slide 14: Stable cash flow stream: long term contracted return
. ) EBITDA Growth: +20% YoY based on organic growth Turnaround of market activities: Focus on returns, flexibility and clients 121% increase of wind power installed capacity; 18% reduction of CO2/GWh Efficiency improvement / maintenance of sound base of regulated activities 26 ,# ( * 33%:( ( Stable
Slide 15: Distribution EBITDA in Iberia and Brazil
)$ 3 . EBITDA Growth: +16% Better Regulation in Spain + Lower Energy Costs + Focus on Efficiency Iberian Distribution - Contribution to EBITDA (€ million) 90 (26) 474 410 9M06 Gross Profit Operating Costs 9M07 Continuous effort to improve efficiency and quality of service: Efficiency Ratios Equivale
Slide 16: Regulatory receivables in regulated electricity distribution
) Regulatory receivables in Regulated Electricity Distribution Activities (€ million) 843 -30% 267 613 Brazil 583 592 593 • Accumulated tariff deviations • Rationing losses and “Parcela A” 157 145 246 196 Spain 362 • 2006 tariff deficit of €154m (1) 188 203 154 169 • 2007 Tariff deficit of €49m Port
Slide 17: EDP operating costs
+ ( EDP operating costs (€ million) • Decline of supplies & 9M06 9M07 % Chg. services and personnel Controllable Operating Costs 1,060.7 1,028.4 -3% costs: efficiency improvement and staff Supplies & Services 546.2 499.6 -9% reduction and disposal of Personnel Costs 459.3 437.9 -5% telecoms subsidia
Slide 18: 75% of capex allocated to regulated and contracted generation
( ( 5 75% of capex allocated to regulated activities and Long Term contracted generation edp capex: 9M06 vs. 9M07 (€ million) Other 9M06 9M07 % Chg. Brazil 1% 11% Generation & Supply Expansion 417 819 98% Gas 28% 3% Maintenance 484 523 7% Total edp 901 1,341 49% Distribution 12% Generation & Supply
Slide 19: Financing of Horizon acquisition and financial results
Financing of Horizon Acquisition closed under favourable market conditions: Jul-07: US$1.5bn Revolving Credit Facility (7-Year term) Oct-07: US$2bn fixed rate bond issue (US$1bn 5-Year term + US$1bn 10-Year term) Holding in Jun-07 (EDP SA + EDP Finance BV) 3,000 Other 2,700 EDP SA & EDP Finance BV 2
Slide 20: EDP net profit
3 EDP net profit (€ million) 9M06 9M07 % Chg. • 9M07 capital gains EBIT (€m) 984.8 1,275.9 30% include €30.3m related to Capital Gains/(Losses) 37.6 20.4 -46% the sale of a 5% stake in REN during the IPO; Financial Income/(Expense) (178.0) (297.6) -67% • 9M06 income from Income/(Losses) Associated C
Slide 21: Outlook: wind delivery, hydro projects, efficiency, 2007-2010 plan
* ' . % Wind: focus on delivery and increase of pipeline Materialization of Hydro Development Projects in Portugal and Brazil Efficiency improvement: a continuous target Continue to deliver growth based on a sound capital structure Maintain a Low Risk + High Growth Investment Profile 40 ( Good Perfo
Slide 22: feel our energy
(edp, feel our energy 22