EDP (EDP) Investor presentation summary

Strategic positioning and business model

• Operates as an integrated electric utility in Iberia and Brazil, with a strong renewables presence in the US and EU, and ~90% of generation from renewables by 2025.

• Maintains a resilient, low-risk portfolio with ~80% of EBITDA from regulated or long-term contracted/hedged activities, limiting exposure to market volatility.

• Focused €12bn investment plan for 2026-28, prioritizing US renewables and Iberian electricity networks, with ~70% allocated to renewables and clients.

• Asset rotation strategy enables capital recycling, supporting growth above balance sheet limits and generating cumulative gains of ~€3bn over 10 years.

• Enhanced returns supported by favorable market and regulatory conditions, with project IRRs exceeding WACC by over 250bps.

Regional performance and growth drivers

• Iberia: Improved macro outlook, affordable electricity prices, and strong demand growth, with investments in network modernization and flexibility services.

• US: Favorable PPA pricing, robust renewables pipeline (>20 GW), and strong demand from data centers and tech companies, with secured capacity and upside from re-contracting.

• Brazil: Strong electricity networks presence, inflation-linked returns, and concession extensions providing long-term value and EBITDA growth visibility.

Financial performance and capital allocation

• 2025 recurring EBITDA reached €5.0bn (+1% YoY), outperforming guidance, driven by portfolio diversification and strong FlexGen & Clients performance.

• Recurring net profit stable YoY at €1.3bn, with robust cash flow generation enabling net debt reduction to €15.4bn and improved credit metrics.

• Disciplined capital allocation with gross investments funded by organic cash flow, asset rotation, and tax equity, supporting a sound dividend policy and deleveraging.

• Dividend per share for 2025 set at €0.205 (+2.5% vs. guidance), with a sustainable payout ratio of 60-70%.