Investor PresentationFebruary 2012

0

Business Portfolio

Wind Power

20% of EBITDA

Listed subsidiary: EDP Renováveis (EDP has 77.5%)

IPO in Jun-08

Wind Power: 7.0GW

# 3 wind operator worldwide (present in 11 countries)

1Note: Data as of 9M2011

Brasil

SpainPortugal

20% of EBITDA

Listed subsidiary: EDP Brasil (EDP has 51%)

Presence since 1996

Hydro Power: 1.8 GW

2 electricity distribution concessions

41% of EBITDA

Privatisation in 1997 (IPO)

Single electricity distributor

Power generation: 9.9 GW (ex-wind)

(from which 4.7GW is hydro)

19% of EBITDA

Presence since 2001

Power generation 3.9 GW (ex-wind)

# 2 in gas distribution

Sustainability: Ranked Best Electric Utility Worldwide in 2010-11

Results of Sustainability Assessment(Absolute points 0-100)

6568

74 75 82

8486

7679

7781

83 84

EDP Best Score

Maximum score (100 out of 100)

in the following categories:

-Risk Management

-Climate Strategy

-Stakeholder Engagement

-Social Reporting

2

49

2004 2005 2006 2007 2008 2009 2010 2011

-Social Reporting

-Human Capital Development

-Biodiversity

EDP was rated as #1 worldwide for the second year in a row among 102 utilities evaluated

Partnership with China

Three GorgesThree Gorges

EDP established strategic partnership with China Three Gorges

CTG as new

shareholder

� China Three Gorges (“CTG”) to acquire a 21.35% equity stake in EDP for €3.45 per share (€2.7bn)

� CTG to have an adequate representation at the General and Supervisory Board; commitment to a 4 year lock-

up & standstill period

� EDP and CTG to combine efforts to become worldwide leaders in renewable energy, through joint

development and ownership of selected renewable projects

� In 2012-2015, CTG to invest €2bn in 34-49% equity stakes in operational and ready-to-build projects,

Key Highlights of the Strategic Partnership

4

CTG as new

partner

� In 2012-2015, CTG to invest €2bn in 34-49% equity stakes in operational and ready-to-build projects,

representing 1.5 GW (net), from which €800m to be invested in the first 12 months after closing of the deal

� Committed credit facility of up to €2bn provided by a Chinese financial institution to EDP at corporate level for

a maturity up to 20 years

� Positive impact on EDP’s credit profile:

� Stronger financial liquidity: Coverage of financing needs extended from mid-2013 to mid-2015

� Net debt/EBITDA 2015E < 3.0x

� Partnership EPS enhancing to EDP shareholders from 2012 onwards

Long term partnership enhances visibility of the high quality of EDP’s portfolio of assets

China Three Gorges: Company Overview

� 100% owned and fully supported by

Chinese Government (Moody’s: Aa3 /

S&P: AA-)

� Clean energy development strategy and

international development aspiration:

� Develop hydropower projects

5

� Develop hydropower projects

� New-type clean energy projects

� 50.8 GW capacity under construction of

which 48.9 GW of hydro

� 2020 target: 90 GW (70 GW in hydro and

20 GW in wind)

� Credit rating: AAA (Chinese rating)

(1) Installed capacity consider 3GW from minority shareholding

China’s largest clean energy group with an ambitious renewable energy expansion plan

EBITDA 2.5 Installed Capacity (GW) (1) 25.4

Net Income 1.2 Hydro 25.2

Net Debt 5.7 Wind 0.2

Net Debt/EBITDA 2.2x Electricity Generation (TWh) 101

2010 Financial Figures (€ billion) 2010 Operational Figures

EDP-CTG Strategic Partnership: Key Principles

vEDP’s Leadership

Markets

vCTG’s Leadership

Markets

Investments identified by EDP

• If EDP wishes to co-invest, JV

• If EDP does not seek investment

and direct competition applies,

waiver required

• CTG allowed to invest on wholly

owned basis

• If CTG wishes to invite 3rd party

- EDP Preferred Partner

• If CTG wishes to co-invest, JV

• If CTG does not seek investment

and direct competition applies,

waiver required

Key Markets

• Europe (1)

• US and Canada

• Selected South America

assets

• EDP allowed to invest on wholly

owned basis

• If EDP wishes to invite 3rd party -

CTG Preferred Partner

• Asia (2)

Investments identified by CTG

6

vOther Markets

• Right of First Offer

• Proposal for Partnership

Committee

• If EDP wishes to invite 3rd party

- CTG Preferred Partner

• Right of First Offer

• Proposal for Partnership

Committee

• If CTG wishes to invite 3rd party

- EDP Preferred Partner

(1) Countries where EDP is present (2) Countries where CTG is present and/or it has technological or industrial advantages

Worldwide leadership through diversification of growth opportunities and shared access to new markets

• Other South American

Markets

• Africa: focused primarily in

South Africa, Angola and

Mozambique

Partnership Committee: Consultation committee to discuss potential co-investment opportunities in renewable

technologies, with equal representation and annual rotation of chairman

Partnership in Existing and Future Renewable Projects

� CTG to invest €2bn until 2015 (including co-

funding capex) from which €800m in the first

12 months after closing:

― Stakes between 34% - 49% in projects

equivalent to c.1.5GW (net), including

900MW (net) in operation and 600MW

(net) of ready-to-build projects

Transaction Structure for Minority Investments

(1)

7

(net) of ready-to-build projects

― Full consolidation and operation by EDP

� Joint development and ownership of selected

renewable projects

� Key valuation/investment criteria pre-agreed

Status quo 51-66% 49-34%

Partnership to maximize value extraction from worldwide growth platform in renewables

Other Assets

(1) EDP or its subsidiaries to maintain a minimum of 51-66% shareholding in specific renewable asset to be agreed

CTG stake of Specific Renewable Asset

to be agreed:

� 600 – 800 MW in Europe

� 600 – 800 MW in US

� 0 – 200 MW in South America

CTG adds Financial and Liquidity Strength to EDP

Expected Impact on EDP’s Financial Liquidity

(€bn)

4.02.8

1.2

4.0

6.0

8.0

� CTG Investment

� €0.8bn CTG investment� €2bn facility from Chinese

financial institution

EDP debt maturity profile 2012-15

(€bn)

4.0

6.0

8.08.0

8

Strong improvement of EDP’s credit profile:

Financing needs coverage extended from mid-2013 to mid-2015; Net Debt/EBITDA 2015E < 3.0x

0.0

2.0

Total Liquidity (Sep-11)

First 12 months

2013-15 Adjusted Liquidity Position

0.0

2.0

2012 2013 2014 2015

� EPS accretive for EDP from 2012 onwards

� Access to new and competitive long-term funding

Partnership with CTG: Corporate Governance

� Commitment to a 4-year lock-up and standstill

period, promoting shareholder stability

� Limitation on voting rights to be increased to

25.0%(1)

EDP New Shareholder Structure (Proforma)(Considering EDP shareholder structure as of 14-Sep-2011 as starting point)

CTG, 21.35%

PARPÚBLICA (Portuguese State), 3.70%

CGD (100% owned by

Portuguese State), 0.61%

FREE FLOAT, 40.28%

9

� CTG not to be considered as competitor as long as

strategic partnership remains in place(1)

� Appropriate representation of CTG in General and

Supervisory Board(1)

Alignment of CTG’s and other EDP shareholders’ interests

(1) Proposal to be presented by EDP Shareholders represented in the General and Supervisory Board, and still subject to approval by EDP General Shareholders’ Meeting

BCP Pension Fund, 3.37%

QATAR, 2.02%

IBERDROLA, 6.79%

CAJASTUR, 5.01%

JOSÈ DE MELLO, 4.82%

BES, 2.12%

SONATRACH, 2.23%

SENFORA, 4.06%

NORGES BANK, 2.76%

OWN SHARES, 0.87%

A Value Enhancing Partnership

� Maintenance of EDP’s identity: Iberia, Brazil and Renewable as part of EDP’s core business

� Minimize conflicts of interest: No current overlap and eventual future conflicts regulated as

part of the Strategic Partnership

� Reinforced shareholder structure: Committed long-term shareholder with interests aligned

with EDP; stable shareholder structure and transparent corporate governance

Strategic &

Corporate

Governance

�

�

�

�

10

Value creation for shareholders based on additional sustainable growth and stronger credit profile

� Value accretive for EDP’s shareholders: Diversification of growth opportunities; strong

financial support and lower risk

� EDP with a stronger credit profile: Net Debt/EBITDA <3.0x by 2015E and significant

improvement of EDP’s liquidity

� EPS accretive for EDP from 2012 onwards

Financial �

�

�

Business Profile,

RegulationRegulation

EBITDA: ~50% generation;~50% distribution

� Generation: LT contracts (inflation updated prices)

� Distribution: regulated return on RAB with efficiency incentives

EBITDA: 35% USA, 64% Europe, 1% Brazil

� ~90% of capacity sold at fixed tariffs or PPAs lasting ~15 Years

Power generation + power & gas supply in free market

� Generation: 7.1GW; ~50% Spain, ~50% Portugal; ~50% CCGT, ~20% Coal

� FW contracting: 30TWh of sales to clients; ~100% of expected output contracted at

clean thermal spread(1) >€10/MWh

21%

19%

10%

Brazil

Wind Power

Liberalized Activities

Iberia

Re

gu

late

d o

r Lo

ng

Te

rm C

on

tra

cte

d

2011E EDP EBITDA Breakdown:

Highly regulated low risk profile company

12

>85% of EBITDA from regulated and LT contracted activities

Power plants with fixed RoA / tariffs: No material volume/price risk

� PPA/CMEC Portugal: 8.5% RoA real before taxes, mostly hydro plants

� ~6 Years average maturity of contracts, hydro in free market afterwards

Electricity and gas distribution in Portugal and Spain

� Regulated return on RAB with stable regulation

� Electricity Distribution Portugal: 74% of 2011E Regulated Revenues

� ~90% of capacity sold at fixed tariffs or PPAs lasting ~15 Years

� 522MW capacity added in 9M11: avg. load factor ~30%; above-the-portfolio avg. price

21%

28%Iberian Regulated

Energy Networks

LT Contracted

Generation Iberia

EBITDA

2011E

Re

gu

late

d o

r Lo

ng

Te

rm C

on

tra

cte

d

(1) Average of clean spark spreads and clean dark spreads contracted; includes proportional CO2 free allowances; excludes Spanish coal-based contracted output

Predictability of EDP’s financial performance: Delivery of Targets

EPS10: Actual data versus consensus on Jan-09 (1)

(%)

10%

INT POWER

EON

IBERDROLA

ENEL

EDP

CENTRICA

SSE

FORTUM

EPS11E Consensus: Change from Jan-09 to Date (2)

(%)

-8%

INT POWER

IBERDROLA

ENEL

ENDESA

EDP

CENTRICA

SSE

FORTUM

13(1) Bloomberg data: EPS adjusted for abnormal items versus EPS consensus as of Jan 1st, 2009; (2) Bloomberg data. EPS Consensus on January 24th, 2012 vs. Dec 31st, 2008

Business model based on LT contracted & regulated activities: low sensitivity to energy markets

Current market consensus for EDP’s EPS 2011E slightly below latest EDP’s guidance

-60% -50% -40% -30% -20% -10% 0% 10% 20%

VERBUND

GAS NAT

EDF

IBERDROLA

GDF-SUEZ

RWE

ENDESA

-89%

-55% -45% -35% -25% -15% -5% 5%

VERBUND

GAS NAT

EDF

INT POWER

EON

GDF-SUEZ

RWE

-64%

-57%

-56%

9M11 EDP EBITDA Breakdown: 55% outside of Portugal

9M11 EBITDA Breakdown(%)

55% Regulated

Networks

Wind Power

Liberalised

39%

7%

6%

Electricity Distribution (91% of Reg. Networks EBITDA):

Improved visibility – ERSE’s disclosed tariffs on December 15th

Liberalised Generation and Supply:

2.5GW power generation (~80% CCGT ~20% Hydro)

Electricity & gas supply in free market

Wind Power: Feed-in tariffs indexed to Inflation

599MW licensed before Feb-2006 (tariff of €94/MWh)

321MW awarded in 2006 (tariff of €74/MWh) (1)

14

Regulation: key driver of Portugal’s operations; improved visibility following 4Q11 update

9M11

45% 48%

PPA/CMEC: Improved visibility

Government’s decision on November 14th implied 1 year

deferral (from 2012 to 2013) of €141m receivable; No change

in earnings/value

Improved visibility – ERSE’s disclosed tariffs on December 15th

brought clarity on regulation for 2012-14 period, and

improvement of 2012 regulated revenues.

9M11

LT Contracted

Generation

(1) Capacity attributable to EDP referent to 40% of the total installed capacity of ENEOP consortium (equity consolidated by EDP)

PPA/CMEC: 8.5% return on assets; no volume/margin risk until Dec-16

CONTRACTED GROSS PROFIT

=Contracted Net Assets (Inflation updated)

x

8.5% Return on Assets (Real pre-taxes)+

Annual Depreciation+

Contracted costs with efficiency incentives:

Remuneration scheme

(until earlier between PPA-end and 2017)PPA/CMECs dynamics in 2010-16

19%

2%

Setúbal plant (946MW)

� PPA End in Dec-12

� EBIT(1): -€61m

Coal

Fuel Oil

Sines plant (1,180MW)

� PPA End in Dec-17

� DeNox, fully operation Dec-12: 8.5% ROA and full deterioration until Dec-17

� EBIT(2): +€23m

15

CMEC supported by sound legal framework; term of current CMEC scheme: Dec-16 (5-year maturity)

(1) Last full year of operation (2) First full year of operation of DeNOx facilities (4) Impact on EBT calculated based on a market price of €55/MWh in 2014E , including ancillary services(5) Present value of contracted gross profit as of 1/1/2012, assuming an annual inflation of 2%. This does not include the value of hydro beyond the end of PPA (‘extension of hydro domain’)

(3) Based on average hydro year

Contracted costs with efficiency incentives:

� Fuel (pass through at benchmark costs)

� Contracted O&M (inflation updated)

� Contracted programmed plant availability

Full pass-through of post 1994 new costs of operation for power generation plants such as:

� EU/Portuguese legislation on CO2, SOx, Nox

� Social tariff, Water taxes, Municipal rents, G-charge

79%

PPA/CMEC PV(5)

Jan-12

Hydro Hydro (4,094MW)

� Dec-13: PPA term for 804MW (3plants)

• Output (3): 2.5 TWh

• PPA Price (3): €25/MWh

• Impact on EBT(4): +c€80m

� Dec-15: PPA term for 627MW

• Output (3): 1.8 TWh

• PPA Price (3): €49/MWh

• Impact on EBT(4): +c€10m

Improved Visibility on Regulation in Portugal:

2012 Regulated Revenues & Key Parameters 2012-2014

Regulated Revenues 2012E (1)

(€ million)Return on RAB: Calculation Methodology

(%; bp)

Portuguese 8.0%

9.5%

10.25%

0.25

0.25

0.1875

RoR

0.1875

11.0% 2011E 2012E ∆ Abs. ∆ %

Distribution Activity 1.204 1.286 +82 7%

Last Resort Supply Activity (2) 105 94 -11 -10%

Regulated Revenues 1.309 1.380 +71 5%

16(1) 2011: in accordance with 2011 Tariffs set by ERSE (assuming 49TWh consumption for 2011); 2012: in accordance with 2012 Tariffs set by ERSE (assuming 47.6GWh of consumption for 2012) (2) Including allowed revenues from operating costs of energy purchase and sale activities (3) Date: January 18th, 2012

� RoR increases from 8.56% in 2011 to a preliminary 9.5% for

2012 (based on scenario of avg. Portugal 5Y CDS of 780bps);

� RoR for year t (over 2012-2014): indexed to avg. Portuguese

Republic 5Y CDS between October of year t-1 and

September of year t; RoR floor at 8.0% and cap at 11.0%;

� Average CDS Portuguese Republic Oct-11 to date(3): 1,089bps

� Regulated Revenues 2012 of €1,380m (+€71m YoY; based on

preliminary 9.5% RoR);

� CPI-X update on parts of 2013-2014 revenues:

1. CPI factor: Portuguese GDP deflator by June of year t-1

2. X factor: set at 3.5% for 2013-2014

Portuguese

Republic CDS

780bp 1080bp 1480bp80bp

Regulated Revenues 1.309 1.380 +71 5%

Lower sensitivity of regulated revenues to GWh distributed

Electricity Distribution and Last Resort Supply in Portugal: Breakdown of 2011 and 2012 Regulated Revenues (1)

(%)

Variable Component:

� Depending on GWh distributed and injected into the grid;

� Unit tariff updated at ‘CPI – X’

€1.31bn

40%

€1.38bn

12%

“Quasi-Fixed” Component:

17(1) 2011: in accordance with 2011 Tariffs set by the ERSE (assuming 49.0TWh consumption for 2011); 2012: in accordance with 2012 Tariffs set by ERSE (assuming 47.6GWh consumption for 2012)

EBITDA sensitivity to ±1% deviation in volumes distributed is ±€2m in 2012E tariffs (vs. ±€6m in 2011 tariffs)

Regulator assumption on electricity demand for 2012: -3% YoY vs. assumption made in 2011 tariffs’ calculation

2011E 2012E

60%

88% � 12% depending on number of consumers connected/supplied, volume of customer service processes; Unit tariff updated at CPI–X

� 12% updated only at CPI-X

� 64% Fixed

Funding, Liquidity position

& Growth& Growth

Change in Net debt

Change in Net Debt: Dec-10 vs. Sep-11

(€ billion)

1.4

1.60.5

0.70.7 0.1

1.416.3 16.6

RegulatoryReceivables

RegulatoryReceivables

Adjusted (5) Net Debt /EBITDA

19

Net debt of €16.6bn (-€0.3bn vs. Jun-11; +€0.2bn vs. Dec-10)

Financial Divestments: €353m from disposal of 13.8% stake in EDP Brasil

Financial Investments: €231m for 20% stake in Genesa (exercise of put option by Caja Madrid)

(1) EBITDA - Income taxes - Maintenance capex - interest paid (2) Includes change in working capital from equipment suppliers (3) Expansion capex and net financial investments (4) Impact from mark-to-market of reported net debt due to forex and interest rate market conditions; (5) Excluding Regulatory Receivables

14.9

Net Debt Dec-10

Free Cash Flow (1) Chg. in Working Capital (2)

Expansion Capex & Fin. Investments (3)

Dividends Paid Forex & Fair Value (4) Net Debt Sep-11

15.2

4.1x 4.1x

9M11 EBITDA Breakdown

(%)S&P Fitch Moody's

AAA AAA Aaa

AA+ AA+ Aa1

AA AA Aa2

AA- AA- Aa3

A+ A+ A1

A A A2

A- A- A3

Credit ratings EDP vs. Sovereigns

19%

20%

20%

7% of total EBITDA

from USA

(1)

20

EDP’s rating above the Portuguese Republic: 3 notch by S&P, 2 notches by Moody’s and 3 notches by Fitch

Strong credit profile supported by markets diversification and low sensitivity to economic cycle

BBB+ BBB+ Baa1

BBB BBB Baa2

BBB- BBB- Baa3

BB+ BB+ Ba1

BB BB Ba2

BB- BB- Ba3

(1) Rating in local currency which differs from the rating in foreign currency (BBB)

19%

41%

Access to diversified portfolio of funding sources allows flexibility and

active management of pricing, liquidity, maturities and currency risk

28%

19%

4%2%

Securitizations

Portugal & Spain

Public Bond

Issues

EDP Brasil TEIs in US

EDP Group - Sources of New Funding Raised in 9M11

(%)

21

11%

9%9%

9%

9%Commercial

Paper

Bank Loans

Project

Finance EIB

9M11: €3.3bn raised through diversified funding sources and €2.2bn cash payments on debt maturities

4Q11: €200m 3 years retail bond issue at 6% (1.4x demand) and USD124m of Institutional

Equity Financing (Wind US: 99MW)

Private Bond

Issues

Financial liquidity position and debt maturity profile as of Sep-11

InstrumentMaximum

Amount MaturityAvailable

Sources of liquidity (Sep-11)

(€ million)

Number of

counterparties

Revolving Credit Facility 2,000 03-11-20151,50021

Underwritten CP

Programmes 650 Renewable6503

Domestic Credit Lines 190 18410 Renewable

EDP consolidated debt maturity profile (Sep-11 )

(€ million)

2,500

3,000

3,500

Commercial paper

Other subsidiaries(1)

EDP SA + BVBrazil: € 45 M

Project Finance: € 35 M

€0.1bn Loans: 2011

22(1) Includes essentially EDP Brasil and project finance at EDPR level.

Total Credit Lines 2,840 2,334

Programmes 650 Renewable6503

Cash and Equivalents:

Total Liquidity Available 4,080

1,746

Average Debt Maturity by Sept-11: 5 years

Financial Liquidity of €4.0 bn (Sep-11) doubles to €8.0 bn with the Partnership with CTG

0

500

1,000

1,500

2,000

2,500

2011 2012 2013 2014 2015 2016 2017 2018 > 2018

� Cash & Equivalents (Sep-11):

� Refinancing needs in 2011-2012:

Loans maturing in 2011:

Bond maturing in Jun-12:

Bond maturing in Aug-12:

Sources of funds Use of funds

€1.7bn

€0.5bn

€0.15bn

Main sources and uses of funds

€0.35bn

23

Comfortable liquidity position

Partnership with CTG extends coverage of funding needs until 1H15

� Available Credit Lines (Sep-11): Bond maturing in Nov-12:

Loans maturing in 2012:

Total: €2.2bnTotal:€4.0bn

€2.3bn€0.7bn

€0.5bn

€0.35bn

Financial Leverage:

Consistent with low operating risk and long asset maturityEuropean Utilities: 2010 Net Debt/EBITDA vs. Business Mix (1)

(x;%)

3.0

4.0

5.0

6.0

VerbundFortum

Int. Power

SSEEnel

REN/REE

National Grid

Terna

Iberdrola

Gas Natural

A2A

De

bt/

EB

ITD

A 2

01

0

Snam/ Enagas

2015E

24

More than 80% of EBITDA from long term contracted or regulated activities

Longer residual useful life + relevant works in progress + Low CO2 exposure

(1) Source: Bloomberg and Company Reports

0.0

1.0

2.0

3.0

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Centrica RWE

E.ON

Int. Power

GDF Suez EDF

% of 2010 EBITDA from Regulated Networks + PPA’s

Ne

t D

eb

t

2015E

Capex 2011-2012: €2.1bn/year, 80% of which in expansion

Avg. Capex 2011-12E: ~€2.1bn/year

(€ bn)

Hydro 28%

Brazil 7%Other 1%

Expansion ~1.6

~2.1

Expansion 2.0

2.7

25

Capex 2010 Capex 2011-12E Expansion Breakdown

Wind 64%Maintenance

~0.6

~1.6

Maintenance~0.7

Expansion capex: >90% in CO2-free technologies

Hydro capacity under construction

76.4%

23.6%

New Plant

Repowering

Hydro Investments Portugal: 2,147MW under construction;

EBITDA delivery as from Jan-12

Hydro Plants MW To enter in operation GWh/Year(1) (2) Type

Picote II 246 Dec-11 244 Repowering

Bemposta II 191 Dec-11 134 Repowering

Alqueva II 256 3Q12 381 Repowering w/ Pumping

Ribeiradio & Ermida 77 1Q14 134 New plant

Baixo Sabor 171 3Q14 405 New plant w/ Pumping

26(1) Total output in average years; (2) Net output on plants with pumping: Alqueva II 30GWh, Baixo Sabor 230GWh, Foz Tua 275GWh, Venda Nova III 18GWh, Salamonde II 81GWh;

(3) Expected EBITDA for 2016.

� 76% of new MWs in repowering: Lower capex; extends the useful life of existing plants by ~25 years

� 76% of new MW are pumping capacity: improves water management of all plants; enhances projects IRRs

� Capex: €2.1bn in total, €737m invested until 9M11

76.1%

23.9%

With Pumping

No Pumping

Baixo Sabor 171 3Q14 405 New plant w/ Pumping

Venda Nova III 740 3Q15 1,337 Repowering w/ Pumping

Salamonde II 207 3Q15 274 Repowering w/ Pumping

Foz Tua 259 4Q15 585 New plant w/ Pumping

Total 2,147 3,235

2011/12 Wind Investments:

Strong visibility on value creation

Iberia

Western

Europe

2011-12E Additions by Region

(%)

2011-12E Additions by Country

(%)

France

Belgium

Spain 15%

Portugal 19%

Italy 5%

5%

34%

• Feed-in tariff (15 years)

• Green certificate markets

• Feed-in tariff (15 years)

• Feed-in tariff or

variable regime with collars (20 years)

27

Central and Eastern

Europe

Americas

Italy 5%

Romania 6%

Poland 22%

US 24%

Brazil 4%

10%

29%

28%

• PPA (20 years)

• Long-term contracts + Tax incentives

(mandatory green quotas)

• Green certificate markets

(mandatory green quotas)

• Green certificate markets

(mandatory green quotas)

� Generation portfolio: +78% in 2005-10, +9% in 2010-12; 2/3 is Wind & Hydro

� €2.8bn of works in progress to be materialised in EBITDA over the next years

� #1 Hydro developer in Europe (firm pipeline of 3.5GW), #3 wind player worldwide

� High exposure to Brazil: 20% capacity increase due in 1Q12; preliminary works for 17% further

increase

Focused

Growth

� Longer remaining life of generation fleet: low replacement needs, O&M, CO2 costs

EDP: a Distinctive Story

28

Superior

Efficiency

Controlled

Risk

� Longer remaining life of generation fleet: low replacement needs, O&M, CO2 costs

� Flexible expansion capex, focused on attractive return/risk combination

� Opex/Gross profit: 27% in 9M11, reinforcing leading position on efficiency

� Low-risk profile: >85% of 2012E EBITDA from regulated & LT contracted activities

� Diversification: ~45% of EBITDA coming from Portugal

� Sustainability: Ranked as Best Electric Utility Worldwide in 2010 and 2011

� Funding needs covered until mid-2015

AnnexesAnnexes

9M11 EBITDA: 89% from Regulated and LT Contracted Activities

% Chg. YoY

€2,651m €2,775m

+5%

Brazil

Liberalized Activities

Iberia

11%

20%

20%

19%

15%-23%

+12%

EBITDA Breakdown by Activity (1)

(€ million)

30

No material Forex impact (-€3m at EBITDA level from which +€11m from Brazil and -€14m from USA)

9M10 9M11

Wind Power

Regulated Networks

Iberia(2)

LT Contracted Generation Iberia

89%

20%

28%

22%24%

25%

18% +16%

+16%

-4%

(1) As of Sep-11, EDP changed its accounting policy as to the interest cost and estimated return of the fund assets: the respective amounts, so far accounted as operational expenses, are now accounted at financial results level. Only 9M11 income statements comply with this change, implying a positive impact on EBITDA of €66m in 9M11. (2) Includes regulated networks and other.

Spain represents 26% of EDP’s EBITDA in 9M11

9M11 EBITDA Breakdown(%)

74%

Thermal Generation &

Supply (3)

Generation: Nuclear

18%

Regulated Networks (Gas and Electricity): stable regulation

Regulated Revenues updated annually, namely with inflation,

efficiency factors and demand (based on Return on RAB

methodologies)

25%

3%2%

Generation: Hydro

Electricity Networks

Generation & Supply: reduced exposure to hydro and nuclear

3.9GW of generation capacity (3% Special Regime (1), 4%

Nuclear, 11% Hydro, 38% Coal, 44% CCGT)

Electricity and gas supply in free market

31

Wind power, gas & electricity networks represent c70% of EDP's EBITDA in Spain

Spanish generation activity with low exposure to hydro and nuclear (c5% of EBITDA Spain)

9M11

26% 29%

Wind Power: feed-in tariffs or variable regime with collars

� 1,153MW under Transitory Regime (‘pool price + €38/MWh

premium’ with collars)

� 1,042MW under RD661/2007 (‘pool + €20/MW premium’

with ‘cap & floor’ or €79/MWh feed-in tariff; c92% of

capacity under fixed tariff option) (2)

methodologies)

9M11

(1) Excluding wind capacity. (2) €20/MWh premium reflects a temporary 35% reduction until Dec-12. (3) Including HC Energia (holding company).

22% Gas Networks

Wind Power

181 207

200217

Operating costs (1) : 9M11 vs. 9M10

(€m)

Operating costs in 9M11:

Efficiency improvements with Opex/Gross Profit(2) at 27%

+3.0%

9-Month average YoY Inflation: Sep-11

(%)

9.6%1,0841,116

Brazil EDPR Iberia

+9%

+14%

% Chg. YoY

32

703 692

9M10 9M11

(1) OPEX=Supplies & Services + Personnel costs + Costs with social benefits excluding restructuring costs and adjusting the impact of the change in accounting policy related to the interest cost and estimated return of the pension fund assets (2) Gross profit adjusted for PTC revenues.

Portugal Spain Brazil (IGP-M)

3.6%3.3%

-2%

� Iberia: Operating costs -2% (excluding €6m of restructuring costs in 9M11)

� Brazil: Operating costs +9% (+6% in local currency, below inflation in the period)

� EDPR: Operating costs +14% essentially due to O&M (+13% increase of installed capacity)

Net Profit up 6% YoY in 9M11

cost of debt: 4.0% in 9M11 vs. 3.5% in 9M10

Impact from longer useful life in wind farms

(from 20 to 25 years)

(€ million) 9M10 9M11 ∆ % ∆ Abs.

EBITDA 2,651 2,775 +5% +124

Net Depreciations and

Provisions1,148 1,055 -8% -93

EBIT 1,503 1,720 +14% +218

Financial Results &

Excluding reclassification of cost of carry with

employee responsibilities (€66m), pro-forma

EBITDA increased 2% YoY in 9M11

33

cost of debt: 4.0% in 9M11 vs. 3.5% in 9M10

€49m impairment on financial stake in BCP;

9M11 includes costs of carry with employee

responsibilities (+€66m)

Increase of listed subsidiaries’ net profit

(EDP Renováveis and EDP Brasil) and

reduction of EDP stake in EDP Brasil in Jul-11

Financial Results &

Associated Companies(330) (529) -60% -199

Capital Gains/(Losses) 3 10 +299% +8

Income Taxes 306 242 -21% -63

Non-controlling

interests96 136 +42% +40

Net Profit 774 824 +6% +49

One-off fiscal impacts in 9M11

Installed capacity: +94% between 2005 and 2012E

Average Residual Useful Life of

EDP’s Generation Portfolio (Years)EDP Group Capacity by Technology: 2005-2012E(GW; %)

Hydro Wind

CCGT Other

22.0

23.99%

19%22%

78%

16

24

94%

% Chg.

34

Installed capacity growth driven by greenfield wind & hydro power capacity additions

Wind & Hydro: 47% weight in 2005, growing to 65% weight by 2012E

2005 2010 2012E

31%

34%

16%

29%

17%

22%

32%

65%

44%

13%

40%

12.3

3%

Dec-2005 Dec-2011

8

21

22

37

7.0

EDP: Portfolio of assets with a long average residual life

Average Residual Useful Life of EDP’s Generation Portfolio by Technology Dec-2011(1)

(Years)

Hydro (33%)

CCGT (17%)

Wind (32%)

Coal (12%)

7.2

3.7

2.6

GWTechnology ConcessionEnd Dates

25 years total asset life

3.6Y avg. Ageof portfolio

30-40 years

35

24

17

1

8

0 5 10 15 20 25 30 35 40

0.2

(1) Reference Date: Dec-11 except for Wind (as of Sep-11); Excluding Special Regime Capacity (Mini-hydro, Cogeneration and Biomass), Tunes and Carregado plants.

Hydro concessions extended up to 2047: EDP paid €759m in 2008 for hydro rights in Portugal

Average age of EDP’s wind farms: 3.6 years

Nuclear (1%)

Coal (12%)

Fuel Oil (4%)

Avg. EDP (100%)

2.6

0.9

21.7(1)

30-40 years total asset life

16% of Trillo plant in Spain; end date of

concession

PPA termination date

US

UK

France

Belgium Poland

314

-3,278

-

57 168

Canada

-

-

100

1,448

Wind power generation: EDP is the 3rd largest operator

worldwide, present in 11 countries

36

MW capacity by Sep-11MW capacity by Sep-11

PortugalSpain

Brazil

France

Italy

Romania

Under construction

-20 57

22

-

20

-

57

84874 2,194

284

-

228

Installed

Pipeline

4,0183971,494

18,415

539

13

940

1,444

579

490

7,280

29,385

Porto Pecém

360 MW

Under construction

Sto. Antônio do Jari

373 MW

Construction Started: 3Q11

Concession: 2044

Hydro Generation Thermal Generation Distribution

Hydro Concessions

in Operation

1734.9 MW

Concessions Ending:

2025 - 2036 51% 49%

Free FloatEDP Group

Generation

100%

Distribution

EDP Energias

do Brasil

60%

Brazil: #5 in generation and #4 in distribution in Brazil:

Sustainable growth with sound regulatory framework

37

Bandeirante

SP - 1st state in GDP:

~33% of national total

1.5MM clients in 9.6 K Km2

Concession: 2028

Escelsa

11th state in GDP: 2.3% of

national total

1.2 MM clients in 41.2 K km²

Concession: 2025

EDP Escelsa

100%

100%

EDP

Bandeirante

Peixe

Angical

Lajeado

Energest

EDPR Brasil

Pecém I100%

Enertrade

Commercialization

60%

73%

100%

45%

50%

EDP Energy Regulated Networks Iberia:

Geographical footprint2011E Regulated Revenues(1)

3%

13%

74%

9%

Gas Portugal

Gas Spain

Electricity

Spain

Electricity

Gas

Electricity & Gas

Basque CountryAsturias

Oportonorth coast

Geographical Presence

Cantábria

38(1) Electricity Portugal: €1.3bn in accordance with ERSE’s consumption forecast; Gas Portugal: regulated revenues set for the year going from Jul-10 to Jun-11; Electricity Spain: regulated revenues exclude €7m from transmission activity , sold to REE in 3Q10.

Distribution of electricity in Portugal represents more than 2/3 of the portfolio

Diversified portfolio Portugal/Spain, Electricity/Gas

2011 regulated revenues set by regulators: ~€1.8bn

74%

Electricity

Portugal

Murcia

Value added tax and tariff increases in 4Q11/2012 in Portugal

expected impact per segment

Demand

Weight (%)# Clients

Average Bill

(€/month)Tariff Increase 2012

(% and €/month)

VAT increase

from 6% to 23%

(% and €/month)

Residential(Normal Low Voltage)

~38% 5.4 million €41 (1) +4%+€1.4

+17%+€7.0

Low Income Families

Social Tariff(Normal Low Voltage)

~2% 0.7 million €21+2%

+€0.5State benefit:

~0%

39(1) For Normal Low Voltage (NLV) clients with contracted power < 20.7 kVA (~4.7 million clients); (2) Public administration, defence, social benefit entities, and public lighting.

Corporates / SMEs(Very High/High/Medium and Special Low Voltage)

~50%Liberalized supply:

2012 wholesale price + access tariffs

~No impact: VAT deducted

passed through

State Entities (2) ~10%2012 Tariffs/prices

dependent on voltage level

+17%

Impact on State Budget in 4Q11 + 2012: VAT revenues of €500m, expenses with social tariff benefits €30m

Significant pricing incentive for stronger energy efficient behaviour by Portuguese electricity consumers

~25,000

~85,000

Average electricity prices in Portugal vs. European Peers

Residential (1) Prices 1H11: Portugal vs. EU average

(€c/KWh)

Ireland

Portugal (VAT 23%)

Spain

Austria

Italy

Belgium

Germany

Denmark

Portugal

25%

19%

21%

10%

20%

16%

23%

13%

VAT% CAGR

2001-11 (2)

3.5%

4.4%

0.0%

4.1%

6.4%

2.6%

7.7%

4.0%

40

Residential electricity prices in Portugal continue in line with EU average even with VAT increase in 4Q11

Source: Eurostat (1) 1H11 Electricity Prices for residential usage = Dc – Consumption 2,500 -5,000KWh/year; including VAT and all other taxes, except when otherwise mentioned. (2) Excluding VAT; Considering 1H01 Electricity Prices for residential usage = Dc – Consumption 3 500 kWh/year of which night 1 300 (3) CAGR 2005-11

0 5 10 15 20 25 30

Greece

France

Slovenia

Portugal (VAT 6%)

Hungary

EU 27

Euro 16

Ireland

EU 27

Euro 17

Portugal

13%

25%

6%

20%

17%

13%

7.7%

7.8%

2.6%

3.7%

1.7%

7.0%

16%

17%

4.8%

3.9%(3)

(3)

Net Regulatory Receivables by Sep-11

689

883 898 900

Regulatory Receivables Portugal: €900m (+€211m vs. Dec-10)

� Last resort supply: €573m (+€306m vs. Dec-10); €249m

generated in 9M11 due to higher than expected power

procurement prices (€59/MWh in 9M11 vs. €47/MWh ERSE)

� CMECs: €336m (-€152m vs. Dec-10) €265m received in 9M11;

€114m increase in 9M11.

� Distribution: -€28m (+€50m vs. Dec-10); €39m generated in

9M11 due to differences in tariff mix; -€185m vs. Jun-11 due to

securitization of annuities to be recovered in 2012-13

Regulatory Receivables

(€ million)

1,410

Portugal

1,4431,400 1,449

41

759

531 532 549

-5 -16 -200

securitization of annuities to be recovered in 2012-13

Regulatory receivables stable over 9M11 at €1.4bn

Decline in Spain following securitizations, increase in Portugal due to higher than expected power prices

Tariff Deficit Spain: €549m (-€210m vs. Dec-10):

� -€435m received from 5 securitization deals in 9M11

� +€225m from new tariff deficit created in 9M11 and previous

years adjustments

Brazil

Spain

Sep-11Dec-10 Mar-11 Jun-11

PPA/CMEC: Deviations between return in merchant market and 8.5%

ROA are received/paid through access tariffs in years t+1 and t+2

CMEC Regulatory Receivables: Evolution in 9M11

(€ million)

488 -265

152 -38

9M11 Deviation vs. CMEC Reference

�Volume: ~-30% �Avg. unit margin: ~-30%

9M11 Deviation vs. CMEC Reference

�Volume: +7% �Avg. Realized Price: +4%

336

Calendar of collection: 25% in

4Q11; 27% in 2012; 48% in 2013

� CMEC financial system in place since

2007: to provide liquidity to Iberian

electricity market and at the same

time preserve risk/return profile of

EDP’s 1994 PPA contracts

� PPA/CMEC plants do not benefit

from windfall profits in case of power

price increases in the market

� Positive/negative deviations

42(1) Can be securitized

Exceptional postponement from 2012 to 2013 of €141m(1) recovery related to CMEC 2010 deviation

Dec-10 Previous Years Recovery

Thermal Deviation

Hydro Deviation

Sep-11

� Positive/negative deviations

between contracted gross profit and

gross profit in the market: recovered

or paid back through tariffs in years

t+1 and t+2

� CMEC deviations in 9M11: Hydro

plants better in the market vs. CMEC;

coal plant in market below CMEC,

but improving

Sep-11 Dec-11E ∆ 2012E Dec-12E

-564

+939

-87

+100313CMEC 336 300

700545Distribution and Last Resort

Supply1.075

Improved Visibility on Regulation in Portugal:

Expected Evolution of EDP’s Regulatory Receivables

EDP Regulatory Receivables Electricity Portugal (1)

(€ million)� Regulatory Receivables in Portugal

expected to increase ~€390m in

2012 (excluding impact from

eventual future securitisations)

� Assumption of a €59/MWh (2)

procurement price for 2012 and

increasing liberalisation, reduce

risks of adverse tariff deviations

3

2

41

43

TOTAL 881 1.000 +389 1.389

(1) Does not include Gas Business in Portugal (€18m in Sep-11); (2) ERSE Tariffs: €59/MWh in 2012 vs. €47/MWh in 2011; (3) 5.5% set by ERSE on a preliminary base; Definitive rate of 6.3% considering market data from Jul. 1st, 2011 until Dec. 31st, 2011 (definitive rate results from the formula presented in the Government Instruction nº279/2011, published on October 17)

• Includes €141m with respect to 2010 CMEC deviation, which collection through tariffs was exceptionally deferred from2012

to 2013; to be remunerated at ~4.0% (can be securitised);

• +€939m from deferral of 2012E Special Regime Premium, to be supported by EDP and to be recovered in 2013-2016;

remunerated at 6.3%(3) (can be securitised);

• -€564m from net recovery of 2010/2011 negative deviations from electricity distribution and last resort supply activities;

• -€87m from the recovery through 2012 tariffs of the 2011 estimated CMEC deviation; +€100m from estimated CMEC

deviation to be generated in 2012.

risks of adverse tariff deviations

1

2

3

4

1.6

3.0

Portuguese Electricity System: Sound Financial Sustainability

Regulatory receivables in the Portuguese Electricity System

(€ billions)

Regulatory receivables already securitized by Sep-11

Regulatory receivables owed to EDP

Key assumptions for 2011-2020:

� Brent: USD109/bbl in 2011 +2.6% CAGR to USD138/bbl in 2020

� Electricity Consumption Portugal: CAGR of +0.3%(1)

� Interest cost for new regulatory receivables: ~6%

� Tariff increases: +1.75% CAGR in real terms (+3.75% CAGR nominal)

44

1.4

0.5

2012E 2020E

(1) 2011 electricity consumption in Portugal in line with ERSE’s assumption for 2011 Tariffs: 49.0TWh; Forecast for electricity consumption in Portugal in 2020: 50.3TWh

Portuguese electricity system is sustainable based on conservative assumptions for input costs and demand

and assuming a 1.75% real CAGR for tariff increases in 2012-2020 period

-3.2%

-2.1%

-6.8%

0.6%

-2.3%

-1.2%

-0.7%

Decrease of electricity consumption in Portugal in line with situation in

several countries across Europe

Evolution of electricity consumption: Portugal vs. other European countries – 2011 vs. 2010 (1)

(%)

Spain

France

Italy

Portugal

2011 vs. 2010 Real

2011 vs. 2010 Adjusted (2)

45

-0.9%

-2.8%

-4.5%

-3.7%

(1) Including import/export balance and net of pumping; Figures presented are not adjusted for temperature and working days. Source: websites from mentioned electricity operators. (2) Adjusted for temperature and/or working days. (3) Including only the areas of Amprion and 50Hertz (excludes EnBW and Tennet).

Ireland

UK

Germany

Greece

Electricity consumption is decreasing in several European countries

2011 electricity consumption in Portugal: -3.2% YoY

(3)

Brazil Iberian Market

Electricity & Gas Demand in EDP’s Key Markets

Electricity Electricity Demand Gas Demand

11M11 vs. 11M10 (YoY)

+3.8%

% Weight on Iberia

100% 17% 83%

Iberian

Market Portugal Spain

100% 13% 87%

Iberian

Market Portugal Spain

2011 vs. 2010 (YoY) 2011 vs. 2010 (YoY)

46Source: REN, REE, Enagás and EPE. Figures of electricity correspond to gross demand (before grid losses).

� Brazil: Steady consumption growth prompted by new clients connected and higher industrial production

� Iberian Electricity Market : Weaker demand on residential and SMEs segments

� Gas Iberia: penalised by lower demand for electricity production (CCGTs), stable industrial/residential demand

-2.3%

-3.2%

-2.1%

Market Portugal Spain

-6.2%

-0.6%

-7.0%

Market Portugal Spain

Commercial Activity Portugal: Control over bills collection

Overdue Debt from Customers (1)

(€m; %)Average Collecting Period

(Days)

222

200215

196 209

5%4% 4% 4% 4%

Overdue Debt from Customers

Overdue Debt from Customers/Annual Sales

32 32 3230

28

47

� No material impact on customers collecting cycle, even considering low economic growth

� Decreasing weight on bi-monthly invoicing led to slight improvement in avg. collecting period

4% 4% 4%

2007 2008 2009 2010 9M11 2007 2008 2009 2010 9M11

(1) Includes electricity and gas sales in Portugal in the regulated system and liberalized market; Excludes grid operator (EDP Distribuição) debt from customers (essentially other liberalized suppliers and municipalities current account)

PARPÚBLICA (Portuguese

State), 25.05%

CGD (100% owned by

Portuguese State), 0.61%

BCP Pension Fund, 3.37%

QATAR, 2.02%

NORGES BANK,

OWN SHARES, 0.87%

FREE FLOAT, 40.28%

EDP: Shareholder structure & Corporate Governance

Corporate GovernanceShareholder Structure as of 14-Sep-2011

General and Supervisory Board:

� Oversees management activity and guarantees permanent

monitoring and supervision of the administration,

cooperating with the Executive Board of Directors and all

other corporate bodies in the pursuit of the corporate

interests;

� Elected by the shareholders in the General Meeting;

The appointment of a representative of a shareholder that

48

IBERDROLA, 6.79%

CAJASTUR, 5.01%

JOSÈ DE MELLO, 4.82%

BES, 2.12%SONATRACH,

2.23%

SENFORA, 4.06%

NORGES BANK, 2.76%

(1) Including the stake of Caixa Geral de Depósitos, a 100% Portuguese State-owned bank.

� Dec 7th, 2007: Portuguese State issues exchangeable bond over 4.1%of EDP share capital, maturing Dec-14, strike price €6.70. Investorput exercisable on 5th anniversary of closing (Dec-12) at 100% ofPrincipal Amount.

� 2011 to Date: Aug 24th - Qatar Holding announces stake above 2%

Sep-14th - MFS decreases its ownership interest below 2%

can be considered a competitor needs the approval of >2/3

of shareholders’ meeting present voting rights;

� Composed of 17 members, 9 of whom are independent.

Executive Board of Directors:

� Responsible for the management of the company’s business

activities and for representing the Company;

� Elected by the shareholders at the General Meeting;

� Management team in the company since 2006;

� 7 executive board members: mandate 2009-2011

Partnership with China Three Gorges: Next Steps

Calendar

Jan

2012

1. Notice for Shareholder Meeting

2. Shareholder Meeting

(approval of the waiver and the Supervisory Board

member lists)

Feb Mar Apr May JunExpected Dates

49

Signing of agreement with CTG occurred on December 30th, 2011

Closing expected by the second quarter of 2012

3. Regulatory approvals (Portugal, Spain, US)

4. Closing

First Quarter 2012

Second Quarter 2012

IR Contacts

Miguel Viana, Head of IR

Sónia Pimpão

Elisabete Ferreira

Ricardo Farinha

Pedro Coelhas

Noélia Rocha

E-mail: ir@edp.pt

Phone: +351 210012834

Visit EDP Website

Site: www.edp.pt

Phone: +351 210012834

Link Results & Presentations:

http://www.edp.pt/EDPI/Internet/EN/Group/Investor

s/Publications/default.htm

Next Events

February 1st – Santander Iberian Conference

February 3rd / 10th – Roadshows in Singapore & Hong Kong

February 20th – EDP’s Extraordinary Shareholders’ Meeting

March 8th – YE2011 Results