26 slides from Galp Energia, Sgps S.a. Class B's earnings presentation, Feb 22, 2021
Slide 1: 4Q20 & FY20 Results and Short-Term Outlook
4Q20 & FY20 RESULTS AND SHORT-TERM OUTLOOK February 22 2021 An integrated energy player devel profitable and sustainable businesse galp © Dow Jones (Og AM . Sustainability Indices oo ability aware SUSTAINALYTICS Powered by the S&P Global CSA Bronze Class 2020 MSCI ESG RATINGS
Slide 2: Cautionary Statement
2 CAUTIONARY STATEMENT This document may include forward-looking statements, including, without limitation, regarding future results, namely cash flows, dividends, and shareholder returns; liquidity; capital and operating expenditures; performance levels, operational or environmental goals, targets
Slide 3: Introduction
INTRODUCTION Andy Brown, CEO
Slide 4: Unique position to thrive through the energy transition
UNIQUE POSITION TO THRIVE THROUGH THE ENERGY TRANSITION A) Talented and @ Leading ESG Right size Y foran agile % transition knowledgeable | credentials < High quality and Selective and =, competitive competitive « asset base renewables is platform in place 2 4 FY2020 Results § 2021 Outlook galp ()
Slide 5: 2021 Priorities
2021 PRIORITIES WITH MACRO FUNDAMENTALS REMAINING UNCERTAIN Focused investments Balanced shareholders returns Preparing Bacalhau | FID Continuing 2020 DPS proposal’ renewables build-up € 0.50 sh Net capex 2021 Z 2021 DPS target!
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Slide 7: 4Q20 & FY20 Results
@) 4Q20 & FY20 RESULTS Filipe Silva, CFO
Slide 8: FY20 Group RCA EBITDA of €1.6 bn
=———- FY20 GROUP RCA EBITDA OF €1.6 bn RESULTS REFLECTING WEAK MARKET ENVIRONMENT Qi 3Q20 4Q20 €m FY2019 FY2020 653 401 410 RCA Ebitda 2,381 1,570 500 302 39 Upstream 1,751 4m 102 105 n Commercial 210 325 52 -12 a Refining & Midstream 207 13 5 -2 3 Renewables & New Businesses -6 9 354 108 159 RCA Eb
Slide 9: FCF Generation
FCF GENERATION REFLECTING ONE OF THE MOST CHALLENGING YEARS EVER 4Q19 3Q20 4Q20 €m FY2019 FY2020 643 363 327 Ebit IFRS! + DD&A 2385 1.007 CFFO of €1,025 m 5 . 5 32 v 38 Dividends from Associates 146 90 ~46% YoY reflecting lower operational contribution under harsh market environment “12 103 -60 Chan
Slide 10: Financial Position
—— FINANCIAL POSITION NET DEBT TO BE REDUCED IN 1Q21WITH COMPLETION OF GGND SALE 31Dec., 30 Sep., 31Dec., Em 2019 2020 2020 . Net fixed assets Net fixed assets 1,558 6,/86 6,308 QoQ variation mainly reflecting the Rights of use (IFRS 16) 4,167 1,077 1,002 impairments related with Matosinhos disconti
Slide 11: 2020: Business Flexibility and Cash Preservation
—— 2020: BUSINESS FLEXIBILITY AND CASH PRESERVATION SIGNIFICANT PLAN ADJUSTMENTS TO COPE WITH UNPRECEDENTED CONDITIONS CFFO (€ bn) Net capex (€ bn)! 2EQ.2 DN ene Macro deterioration -36% Brent -77% Refining margin -20% Iberian oil market -5% Iberian gas market ‘ €1.0-1.2 bn €1.0 bn €0.8 bn Solar acq
Slide 12: Short-Term Outlook
SHORT-TERM OUTLOOK Filipe Silva, CFO Thore E. Kristiansen, Upstream COO
Slide 13: Upstream Overview
=——— UPSTREAM OVERVIEW ENSURING A RESILIENT AND PROFITABLE PORTFOLIO Operational performance + Mitigation measures in place to minimise pandemic impaci + Recent experience calls for additional prudency on forecast Next projects milestones + Berbigdo/Sururu full ramp-up and Sépia unit to start i + Ba
Slide 14: Downstream and Renewables & New Businesses 2021 Outlook
DOWNSTREAM AND RENEWABLES & NEW BUSINESSES 2021 OUTLOOK 0.3 GW additional operating capacity by YE2021, totaling 1.2 GW Lockdowns and still weak economic environment to limit demand Galp refining margins expected at $2-3/boe recovery Transformers upset (c.0.4 GW) expected to be solved in early 2Q21
Slide 15: 2021 Key Guidance
2021 KEY GUIDANCE Operational results Net capex Brent @$50/bbl 2020 DPS to be paid in May 2021RCA Ebitda 2020/21 average guidance maintained (considers GGND proc ds in 1Q2 2021 DPS target (with interim in Q3 depending on 2021 CFFO performance) 15 Kk Su oval ot the Annual General Meeting galp esults
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Slide 17: 2021 Guidance and Sensitivities
—— 2021GUIDANCE 7 AND SENSITIVITIES Guidance Brent ($/bbl) Galp refining margin ($/boe) 2-3 Average exchange rate EUR:USD 1.20 WI production (kboepd) 125-135 Sines refinery crude utilisation (%) 90 Oil products sales to direct clients (mton) 7.0 - 8.0 NG and power sales to direct clients (TWh) 26-27
Slide 18: 2020 Overview
=—— 2020 OVERVIEW PERFORMANCE HIGHLY IMPACTED BY MARKET CONDITIONS Renewables & New Upstream Refining & Midstream Commercial Businesses Pandemic context and Operations reflecting pressured Sales drop impacted by Spanish solar PV acquisition challenging macro conditions international environment and
Slide 19: 4Q20 & FY20 Upstream Results
—— 4Q20 & FY20 UPSTREAM RESULTS QoQ IMPROVEMENT DRIVEN BY MORE SUPPORTIVE MARKET CONDITIONS 4Qig 3Q20 4Q20 FY2019 FY2020 136.9 133.8 122.8 Working interest production kboepd 121.8 130.0 121.8 120.0 q1.4 Oi production kbpd 108.0 116.9 135.1 132.0 721.1 Net entitlement production kboepd 120.0 128.2 13
Slide 20: 4Q20 & FY20 Commercial Results
20 4Q20 & FY20 COMMERCIAL RESULTS PERFORMANCE STILL REFLECTING WEAK MACRO ENVIRONMENT 419 3Q20 4Q20 FY2019 FY2020 Commercial sales to clients 2.0 15 45 Oil products mton 83 6.0 78 5.4 59 Natural gas TWh 31.6 22.9 os 09 0.9 Electricity TWh 32 3.3 102 105 n RCA Ebitda €m 410 325 63 81 a7 RCA Ebit em 3
Slide 21: 4Q20 & FY20 Refining & Midstream Results
—— 4Q20 & FY20 REFINING & MIDSTREAM RESULTS ROBUST MIDSTREAM MITIGATES NEGATIVE REFINING CONTRIBUTION 4Qi9 3Q20 4920 FY2019 FY2020 20.5 23.4 23.5 Raw materials processed mboe 96.0 87.1 33 -07 1.6 Galp refining margin USD/boe 34 uw 4.2 3.6 3.7 Oil products supply" mton 16.2 13.9 232 79 24.1 NG/LNG su
Slide 22: 4Q20 & FY20 Renewables & New Businesses Results
——= 4Q20 & FY20 RENEWABLES & NEW BUSINESSES RESULTS PERFORMANCE MOSTLY REFLECTING SEASONALITY AND OPERATIONAL UPSETS 419 3Q20 4Q20 FY2019 FY2020 Indicators on a 100% basis 12 926 926 Renewable installed capacity Mw 12 926 Renewable generation up QoQ, with 3Q20 only including power generated in u 143
Slide 23: Debt Indicators
—— DEBT INDICATORS Debt indicators Debt reimbursement (€m) em 31Dec., 30 Sep., 31Dec., 2019 2020 2020 1,000 Cash and cash equivalents 1,460 1,687 1,678 800 Undrawn credit facilities 1,163, 1,262 1,262 600 Gross debt 2,895 3,777 3,743 Average funding cost 18% 17% 1.7% 400 Netast —vatsn0m| 2.065 | 200
Slide 24: Galp Reserves and Resources
—— GALP RESERVES AND RESOURCES RESERVES EVOLUTION REFLECTING 2020 PRODUCTION WITH NO IMPACT FROM WEAKER MACRO 1p 404 385 -5% 2P 739 700. -5% 3P 982 923 -6% 1c 498 525 6% 2c 1,680 1,720 2% 3C 3,394 3,471 2% Unrisked 4,530 4910 8% Risked 766 861 12% 24 — FY2020 Results & 2021 Outlook Note: ll figures
Slide 25: Galp Leading ESG Performance
GALP LEADING ESG PERFORMANCE CONSISTENT WITH OUR SUSTAINABLE STRATEGIC GOALS ee Dow Jones Sustainability Index CDP climate A-, Leadership Level Best score in Europe, 3 worldwide in the Oil & Gas sector? Industry average: B ) UA aly Sustainalytics Medium risk (26.8) #9 of 280 (global Oil & Gas produc
Slide 26: www.galp.com investor.relations@galp.com
www.galp.com investor.relations@galp.com