Slide 1: EBITDA Growth: +27% YoY based on organic growth
0 EBITDA Growth: +27% YoY based on organic growth Turnaround of market activities: Focus on returns and clients 60% increase of wind power installed capacity; 15% reduction of CO2/GWh Efficiency improvement / Maintenance of Sound Base of Regulated Activities EPS Growth: +13% YoY without capital gain
Slide 2: In an adverse environment, edp achieved strong EBITDA & EPS growth
In an adverse environment, edp achieved strong EBITDA & EPS growth (€ million) 1H07 1H06 % Change Gross Profit 2,263 1,992 +14% Operating Costs 910 926 -2% EBITDA 1,353 1,067 +27% EBIT 828 603 +37% Net Financial Costs (176) (36) - Net Profit 422 375 +13% Funds From Operations (FFO) 816 552 +48% Cape
Slide 3: Market volatility highlights importance of forward contracting and clients
! " # $ " Weighted Average Realized Price in Spot Market (OMEL) Hydro coefficient Pool price: - 36% € / MWh Portugal 100 Spain 0.88 • Demand growth: +2.4% 0.77 75 0.65 • Installed capacity: +5.6%: 57.1 0.53 50 Wind: +21% 36.4 CCGTs: +18% 25 J F M A M J J A S ON D JF M A M J • Hydro production: +39%
Slide 4: Well-managed clients' portfolio: A value creation driver
!) * $ ' + * + Well-managed clients’ portfolio: A value creation driver Portugal Spain Avg. Price (€/MWh) 38 +52% 57 47 +25% 58 Market Share 59% 52% 14% 15% 2.7 2.2 1.2 0.9 Volume TWh 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 Loss making contracts out of portfolio; Well timed contr
Slide 5: Historically, liberalized supply is a core activity for HC Energia
+ ( !) * . /* Historically, liberalized supply is a core activity for HC Energia Electricity Volume Sold in Liberalised Supply Market / Liberalized Electricity Generation Output (Spain + Portugal) 75% 1H06 1H07 61% 51% 53% 31% 25% 18% 19% 12% 8% Peer 1 Peer 2 Peer 3 Peer 4 EDP has the highest level
Slide 6: Volumes and margins growth support EBITDA turnaround
% $ ' + + Liberalized Supply - Volumes & Selling Margin EBITDA Supplied GWh (€ million) Avg. Selling Margin (€/MWh) 2.0 2.2 0.3 -0.5 23.4 -1.0 -2.8 4,550 3,691 3,059 4,014 3,417 3,588 (0.6) 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 1H06 1H07 Volumes and margins growth support EBITDA turnaround 10 % " EBITDA Gro
Slide 7: High level of turbine needs already contracted for 2008 and 2009
1 * " 0 Europe: 469 MW put in place through own development over the last 12 months Wind Power Installed Capacity - Europe Acquisitions (AE: 155 MW) (Gross MW) Organic growth 82% 4,200 3,000 +165 1,732 +460 +157 951 Dez-05 1H06 2H06 1H07 Jun-07 2008E 2010E Wind Power Installed Capacity - US (Gross M
Slide 8: Horizon in US fits edp targets: High quality wind resources + Stable regulation
1 * 3 $ , + Portfolio growth not affecting avg. load factor: pipeline with high quality wind resources Portugal: Load Factors Spain: Load Factors Neo Country’s average Neo Country’s average 28.5% 25.3% 27.7% 24.1% 25.1% 26.3% 1H06 1H07 1H06 1H07 1H07 in Spain: Lower tariffs due to lower pool prices;
Slide 9: On track to reach more than 50% weight of green energy generation by 2010
2 % ( 5 Hydro and wind investment support growth of generation mix and lower edp’s exposure to CO2 emissions edp generation breakdown CO2 Emissions GWh (percent) (CO2 ton/MWh) 28% -15% 40% Coal + Fuel + 48% 0.53 Cogeneration 18% 0.45 14% <0.35 CCGTs 17% 26% 37% Hydro 28% 28% Wind & Other* 7% 9% 1H06
Slide 10: Stable Cash Flow Stream: Long Term contracted return of 8.5% ROA
% **6 Stable Cash Flow Stream: Long Term contracted return of 8.5% ROA PPA Generation Gross Profit (€ million) 467 Energy 2 455 margin -12 -12 • Slight non recurring Capacity negative impact from Charge 465 467 fuel oil procurement at high prices 1H06 Loss in Energy 1H07 Margin PPA’s replaced by CME
Slide 11: EBITDA Growth: +103%; Boosted by recovery of regulatory receivables
! ) 4 ' EBITDA Growth: + 103%; Boosted by recovery of regulatory receivables Distribution Brazil EBITDA: 1H07 vs. 1H06 (€ million) 1H07 1H06 ∆ EBITDA IFRS 247 122 +125 Tariff Deviations (1) (95) (6) (89) One-off Staff Reduction Costs - 19 (19) EBITDA adjusted by tariff deviations and one-off 152 134
Slide 12: EBITDA Growth: +7.5%; Main Driver: Connection of New Clients
% + * EBITDA Growth: +7.5%; Main Driver: Connection of New Clients (€ million) 7.5% 7 (1) 76 71 EBITDA Gross Operating EBITDA 1H06 Profit Costs 1H07 +475 Kms of network; + 52,000 clients YoY Note: + €2.3m impact from consolidation perimeter changes 22 ! # . # €72m of annual cost savings on a recurre
Slide 13: €72m of annual cost savings on a recurrent base already locked
* Portugal Spain Brasil € million € million $R million Personnel Costs & Costs w/ Social 222 59 197 Benefits 1H06 Pro-forma 1H06 (1) 209 59 197 Recurrent Change in the 3 (21) (6) number of workers +1.8% +7.3% -5.7% Annual wage 10 2 14 increase 1H07 recurrent 213 64 191 Increase in costs with 0 12 11
Slide 14: Growing organically: pro-forma EBITDA increased by 26.4%
!4 2) 6 4 " Growing organically: pro-forma EBITDA increased by 26.4% EBITDA Breakdown (€ million) 1H2007 1H2006 ∆ 07/06 Contracted Brazil Generation 23% Iberian Market 1,030 905 14% 28% Generation & Supply 586 545 7% Wind Europe Wind Europe (NEO) 93 71 31% (NEO) 7% Distribution 310 264 17% Liberaliz
Slide 15: EBITDA and FFO Growth more than compensate increase of interest costs
edp financial results (€ million) 1H06 1H07 % Chg. Net financial interests (197) (223) -13% • Cost of Debt Increase Investment income 3 6 +82% In line with credit markets Net foreign exchange differences 20 14 -31% Other financials 138 28 -80% Financial Results (€m) (36) (176) -390% • Non recurrent
Slide 16: 85% Level of Liberalized Generation Already Contracted Provides Stability
& 85% Level of Liberalized Generation Already Contracted Provides Stability Horizon Integration in 3Q07: New growth platform with aggressive capex plan CMECs Implemented since July 1st: Securitization Likely over the next quarters Disposal of 25% stake in REN: Final Closing in 4Q07 Maintenance of St
Slide 17: Good Performance in an Adverse Market: EBITDA +27%; EPS +13%
Good Performance in an Adverse Market: EBITDA +27%; EPS +13% Turnaround of market activities: Focus on Returns and Clients Hedging Based on efficient generation portfolio and strong commercial platform Capex plan on track: Based on Wind (Europe + US) and Hydro (Portugal + Brazil) Efficient and CO2 f