Q2 2025 EDP SA Earnings Call

July 31, 2025

Miguel Viana: Good morning. We welcome you to the EDP Fresh Start 2025 Results Presentation Conference call. During the presentation, all participants will be in a listen-only mode. There will be an opportunity to ask questions after the presentation. If you wish to ask a question during the Q&A session, you may do so by pressing the star key followed by five on your telephone keypad. If you are experiencing any difficulty in listening to the conference at any time, please make sure you have your headset fully plugged in, or alternatively, please try calling from a different device. I now hand the conference over to Mr. Miguel Viana, Head of HR and ESG. Please go ahead, sir.

Operator: Good morning. We welcome you to the EDP First Half 2025 Results Presentation Conference Call. During the presentation, all participants will be in a listen-only mode. There will be an opportunity to ask questions after the presentation. If you wish to ask a question during the Q&A session, you may do so by pressing the star key followed by 5 on your telephone keypad. If you're experiencing any difficulty in listening to the conference at any time, please make sure you have your headset fully plugged in, or alternatively, please try calling from a different device. Now, hand the conference over to Mr. Miguel Viana, Head of IR and ESG. Please go ahead, sir.

Good morning. We welcome you to the EVP First Half 2025 Results Presentation Conference Call.

During the presentation, all participants will be in a listen-only mode.

There will be an opportunity to ask questions after the presentation.

If you wish to ask a question during the Q&A session, you may do so by pressing the star key followed by 5 on your telephone keypad. If you're experiencing any difficulty in listening to the conference at any time, please make sure you have your headset fully plugged in, or alternatively, try calling from a different device.

And now hand the conference over to Mr. Piana head of fire and ESG, please go ahead sir.

Miguel Viana: Good morning, ladies and gentlemen. Thank you for attending EDP's First Half 2025 Results Conference Call. We have today with us our CEO, Miguel Stilwell d'Andrade, and our CFO, Rui Teixeira, which will present you the main highlights of our strategy execution and financial performance in the First Half 2025. We'll move to the Q&A session, in which we'll be taking your questions both by phone or written questions that you can insert from now onwards at our webcams platform. I'll give now the floor to our CEO, Miguel Stilwell d'Andrade.

Miguel Andrade: Good morning, ladies and gentlemen. Thank you for attending EDP's First Half 2025 Results Conference call. We have today with us our CEO, Miguel Stilwell de Andrade, and our CFO, Rui Teixeira, which will present you the main highlights of our strategic vision and financial performance in the first half of 2025. We will then move to the Q&A session, in which we will be taking your questions both by phone or written questions that you can insert from now onwards at our webcast platform. I will give now the floor to our CEO, Miguel Stilwell de Andrade.

Good morning, ladies and gentlemen. Thank you for attending EDP's first Q2 2025 results conference call.

We have today with us our CEO, Rui Teixeira, and our CFO, Miguel Andrade, who will share with you the main highlights of our strategy, execution, and financial performance in the first half of 2025. We'll then move to the Q&A session, in which we will be taking your questions, both by phone and written questions that you can submit from now onwards at our web apps platform.

I'll give note over the floor to our CEO M student.

Miguel Stilwell d'Andrade: Thank you, Miguel. Hello, everyone. Thank you for attending our First Half Results Conference Call. I just say we had a strong and solid set of results here in the First Half. I think this is setting us up well for the full year, which is why we also have a slight revision of the guidance upwards. If we go into slides into the first slide, I can do a quick recap, basically, of our First Half. First, underlying net profit increased by 27% year-over-year, reaching EUR 752 million. That shows, I think, the value of the integrated business in Iberia. We'll go more into in depth in that later on. Solid delivery by EDPR, which we talked about yesterday, and also resilient electricity networks. Integrated business in Iberia had good results.

Miguel Stilwell de Andrade: Thank you, Miguel. Hello, everyone. Thank you for attending our First Half Results Conference Call. I just say we had a strong and solid set of results here in the First Half. I think this is setting us up well for the full year, which is why we also have a slight revision of the guidance upwards. If we go into slides into the first slide, I can do a quick recap, basically, of our First Half. First, underlying net profit increased by 27% year-over-year, reaching EUR 752 million. That shows, I think, the value of the integrated business in Iberia. We'll go more into in depth in that later on. Solid delivery by EDPR, which we talked about yesterday, and also resilient electricity networks. Integrated business in Iberia had good results.

Miguel Stilwell de Andrade: Thank you, Miguel. Hello, everyone. Thank you for attending our first half results conference call. I just say we had a strong and solid set of results here in the first half, and I think this is setting us up well for the full year, which is why we also have a slight revision of the guidance upwards. If we go into the first slide, I can do a quick recap, basically, of our first half. First, underlying net profit increased by 27% year on year, reaching $752 million. That shows, I think, the value of the integrated business in Liberia, and we will go more into depth in that later on. Solid delivery by EDP Renewables, which we talked about yesterday, and also resilient electricity networks. Integrated business in Liberia had good results. We had a structural increase in demand for flexible generation.

Thank you all. Hello everyone. Thank you for attending our first half results conference call.

I just say we we had a strong and solid set of um of results here in the first half. And I think this is setting us up well for, for the full year, which is why we also have um, a site provision of the of the guidance upwards.

Um, and so if we go into slides into the first slide, I can do a quick recap, basically, of our first half.

First.

Net profit increased by 27% year on year, reaching $752 million. So that shows, I think, the value of the integrated business in Liberia, and we're going more in depth into that later on.

Solid delivery by edpr, which we talked about yesterday, and also resilient electricity Networks.

Miguel Stilwell d'Andrade: I mean, we had a structural increase in demand for flexible generation. We had good hydro volumes, well above average. We also had solid results from our electricity networks segment. We had EBITDA growing 6% year-over-year, excluding asset rotation gains and FX. Again, that showed a strong operational performance across all geographies. Again, we went into quite a lot of detail on the call yesterday on that. The wind and solar fronts, underlying EBITDA was up 20% year-over-year, supported by the ramp-up of new capacity added in the Q4. Asset rotation gains, immaterial this semester, only EUR 9 million compared to EUR 143 million in the first half of last year. Again, strength of our underlying performance. Overall, just a strong set of results showing the value of our integrated model.

Miguel Stilwell de Andrade: I mean, we had a structural increase in demand for flexible generation. We had good hydro volumes, well above average. We also had solid results from our electricity networks segment. We had EBITDA growing 6% year-over-year, excluding asset rotation gains and FX. Again, that showed a strong operational performance across all geographies. Again, we went into quite a lot of detail on the call yesterday on that. The wind and solar fronts, underlying EBITDA was up 20% year-over-year, supported by the ramp-up of new capacity added in the Q4. Asset rotation gains, immaterial this semester, only EUR 9 million compared to EUR 143 million in the first half of last year. Again, strength of our underlying performance. Overall, just a strong set of results showing the value of our integrated model.

Miguel Stilwell de Andrade: We had good hydro volumes, well above average. We also had solid results from our electricity networks segment. We had EBITDA growing 6% year on year, excluding asset rotation gains and NFX. Again, that showed a strong operational performance across all geographies. Again, we went into quite a lot of detail on the call yesterday on that. On the wind and solar fronts, underlying EBITDA was up 20% year on year, supported by the ramp-up in new capacity added in the fourth quarter. Asset rotation gains, immaterial this semester, only $9 million compared to $143 million in the first half of last year. Again, strength of our underlying performance. Overall, just a strong set of results showing the value of our integrated model.

Integrated business in IBM had good results. We had a structural increase in demand for flexible generation and good hydro volumes, well above average.

Um, excluding asset rotation gains and FX. And again, that shows a strong operational performance across all geographies. So, again, we went into quite a lot of detail on the call yesterday on that.

The wind and solar front, underlying EDP, that was up 20% year-on-year.

Supported by the ramp-up of new capacity added in the fourth quarter.

Miguel Stilwell de Andrade: If we move forward to the next slide, slide four, I am talking a little bit about the flex gen demand and also the need for more investment. Clearly, we are seeing a shift in market dynamics. There is much more value being placed on flexible generation assets. The value of flex gen is becoming very clear when you look at the final electricity price in Spain. We see that the share attributed to ancillary services and restrictions has been steadily increasing. From around 5 euros per megawatt hour back in 2015 to around 18 euros per megawatt hour in the first half of 2025. At the same time, we are also seeing a growing momentum around new remuneration schemes for this type of asset. Just to highlight that in Spain, there were around 700 million euros in grants for energy storage that submitted this month.

Miguel Stilwell d'Andrade: If we move forward to the next slide 4, talking a little bit about the flex gen demand and also the need for more investment. Clearly, we're seeing a shift in market dynamics. I mean, there's much more value being placed on flexible generation assets. I mean, the value of flex gen is becoming very clear when you look at the final electricity price in Spain. We see that the share attributed to ancillary services and restrictions has been steadily increasing. From around EUR 5 per megawatt hour back in 2015 to around EUR 18 per megawatt hour in the first half of 2025. At the same time, we're also seeing a growing momentum around new remuneration schemes for this type of assets. Just to highlight that in Spain, there were around EUR 700 million in grants for energy storage.

Miguel Stilwell de Andrade: If we move forward to the next slide 4, talking a little bit about the flex gen demand and also the need for more investment. Clearly, we're seeing a shift in market dynamics. I mean, there's much more value being placed on flexible generation assets. I mean, the value of flex gen is becoming very clear when you look at the final electricity price in Spain. We see that the share attributed to ancillary services and restrictions has been steadily increasing. From around EUR 5 per megawatt hour back in 2015 to around EUR 18 per megawatt hour in the first half of 2025. At the same time, we're also seeing a growing momentum around new remuneration schemes for this type of assets. Just to highlight that in Spain, there were around EUR 700 million in grants for energy storage.

As the rotation gained the material, the semester only $9 million compared to $243 million in the first half of last year, again showcasing the strength of our underlying performance. Overall, this is just a strong set of results, demonstrating the value of our integrated model.

If we move forward to to the next slide, slide 4 and talking a little bit about the flex Jen demand. And also the

The need for, for more investment.

Clearly, we're seeing a shift in market dynamics.

I mean, there's much more value being placed on flexible generation assets.

Um, I mean, the value of flex gen is becoming very clear when you look at the final electricity price in Spain, and we see that the share attributed to ancillary services and restrictions has been steadily increasing. So, from around €5 per megawatt hour back in 2015 to around €18 per megawatt hour in the first half of 2025.

At the same time, we're also seeing a growing momentum around new remuneration schemes for this type of asset. And so, just to highlight that in Spain, there were around €700 million.

Miguel Stilwell d'Andrade: Bid submitted this month. There was also the launch of a new capacity mechanism, which is currently under public consultation. We'll see the result of that over the next couple of months. All of this going hand in hand with the need for additional investment in electricity networks. Particularly in Iberia, our main market. I think it's pretty clear to everyone. I think that's a market consensus that it's key to support and to accelerate investments in grids. First, there's more electrification of the economy, particularly in industry heating and e-mobility. There's also a lot more development of data centers and green hydrogen projects.

Miguel Stilwell de Andrade: Bid submitted this month. There was also the launch of a new capacity mechanism, which is currently under public consultation. We'll see the result of that over the next couple of months. All of this going hand in hand with the need for additional investment in electricity networks. Particularly in Iberia, our main market. I think it's pretty clear to everyone. I think that's a market consensus that it's key to support and to accelerate investments in grids. First, there's more electrification of the economy, particularly in industry heating and e-mobility. There's also a lot more development of data centers and green hydrogen projects.

Miguel Stilwell de Andrade: There was also the launch of a new capacity mechanism, which is currently under public consultation. We will see the result of that over the next couple of months, all of this going hand in hand with the need for additional investment in electricity networks. Particularly in Iberia, our main market, I think it is pretty clear to everyone. I think it is a market consensus that it is key to support and to accelerate investments in grids. First, there is more electrification of the economy, particularly in the industry of heating and electric mobility. There is also a lot more development of data centers and green hydrogen projects.

Euros in Grants for energy storage that submitted this month.

And there was also the launch of a new capacity mechanism, which is currently under public consultation. So we'll see the result of that over the next couple of months.

All of this goes hand in hand with the need for additional investment in electricity networks, particularly in Nigeria, our main market.

Uh, I think it's pretty clear to everyone. I think that's a market consensus that is key to supporting and accelerating investments in grids.

First, there's more electrification of the economy.

Miguel Stilwell de Andrade: Just looking at some of some key data points and looking at EDP's numbers, we have seen an increase of around 126% in e-mobility-related supply points in the first half of 2025 versus the first half of 2023, so in the two-year space. We continue to see a rise in electricity demand with electricity distributed by EDP increasing 3% year on year in the first half of 2025. Also, increasing penetration of intermittent renewable technologies like wind and solar. As you know, in Iberia, clearly a lot of resources for that, so abundant resources on both of those. In our distribution companies, we have seen an increase of 18% in renewables connected to the grid in the first half of 2025 versus the first half of 2023. Finally, as we stressed in previous presentations, we think it is really critical to invest in a more modern and digital grid.

Miguel Stilwell d'Andrade: Just looking at some of, you know, some key data points and looking at EDP's numbers, we've seen an increase of around 126% in e-mobility related supply points in the first half of 2025 versus the first half of 2023, so in the 2-year space. We continue to see a rise in electricity demand with electricity distributed by EDP increasing 3% year-on-year in the first half of 2025. Also, increasing penetration of intermittent renewable technologies like wind and solar. As you know, in Iberia, clearly, a lot of resources for that, so abundant resources on both of those. In our distribution companies, we've seen an increase of 18% in renewables connected to the grid in the first half of 2025 versus the first half of 2023.

Miguel Stilwell de Andrade: Just looking at some of, you know, some key data points and looking at EDP's numbers, we've seen an increase of around 126% in e-mobility related supply points in the first half of 2025 versus the first half of 2023, so in the 2-year space. We continue to see a rise in electricity demand with electricity distributed by EDP increasing 3% year-on-year in the first half of 2025. Also, increasing penetration of intermittent renewable technologies like wind and solar. As you know, in Iberia, clearly, a lot of resources for that, so abundant resources on both of those. In our distribution companies, we've seen an increase of 18% in renewables connected to the grid in the first half of 2025 versus the first half of 2023.

Particularly in the industry Heating and Electric Mobility. There's ALS a lot more development of data, centers, and green, hydrogen projects. And so, just looking at some of, you know, some key data points and looking at edp's numbers, we've seen an increase of around 126% in e-mobility related Supply points in the first half of 2025 versus the first half of 233. So in the 2 year space,

And we continued to see a rise in electricity demand, with electricity distributed by EDP increasing 3% year on year in the first half of 2025.

Also, increasing penetration of intermittent renewable technologies, like wind and solar. And as you know, there are clearly a lot of resources for that. So, there are abundant resources on both of those.

Miguel Stilwell d'Andrade: Finally, as we stressed in previous presentations, I mean, we think it's really critical to invest in a more modern and digital grid. In Portugal, for example, I think I've given this number before, but it's worth reiterating. Around 45% of transformers are over 40 years old. I think that just shows the urgency of having an infrastructure renewal in both Portugal and Spain. If we move on to the next slide and talk about hydro. We had really strong hydro resources in Iberia in the first half. Hydro inflows were 41% above the long-term average. Even higher than the level seen in the first half of 2024, which was already quite strong. Despite that, hydro generation was lower year-on-year. That's because the rainfall was primarily used to establish reservoir levels, mostly during the Q1.

Miguel Stilwell de Andrade: Finally, as we stressed in previous presentations, I mean, we think it's really critical to invest in a more modern and digital grid. In Portugal, for example, I think I've given this number before, but it's worth reiterating. Around 45% of transformers are over 40 years old. I think that just shows the urgency of having an infrastructure renewal in both Portugal and Spain. If we move on to the next slide and talk about hydro. We had really strong hydro resources in Iberia in the first half. Hydro inflows were 41% above the long-term average. Even higher than the level seen in the first half of 2024, which was already quite strong. Despite that, hydro generation was lower year-on-year. That's because the rainfall was primarily used to establish reservoir levels, mostly during the Q1.

And in our distribution companies, we've seen an increase of 18% in Renewables connected to the Grid. In the first half of 25 versus the first half of of 2023.

Finally, this is we stressed in previous presentations? I mean, we think it's really critical to invest.

Miguel Stilwell de Andrade: In Portugal, for example, I think I have given this number before, but it is worth reiterating, around 45% of transformers are over 40 years old. I think that just shows the urgency of having an infrastructure renewal in both Portugal and Spain. If we move on to the next slide and talk about hydro. We had really strong hydro resources in Iberia in the first half. Hydro inflows were 41% above the long-term average, even higher than the level seen in the first half of 2024, which was already quite strong. Despite that, hydrogeneration was lower year on year. That is because the rainfall was primarily used to establish reservoir levels, mostly during the first quarter, which started the year at around 60%. That was already significantly below the 80% that we had seen at the beginning of 2024.

In a more modern digital grid, in Portugal, for example, I think I've given this number before, but it's worth reiterating that around 45% of transformers are over 40 years old. This statistic shows the urgency of having an infrastructure renewal in both Portugal and Spain.

If we move on to the next slide and talk about, um, hydro.

so we had really strong Hydro resources in Iberia in the first half,

Hydro in Souls was 41% above the long-term average, even higher than the level seen in the first half of 2024, which was already quite strong.

Miguel Stilwell d'Andrade: Which started the year at around 60%. That was already, you know, significantly below the 80% that we'd seen at the beginning of 2024. We use a lot of that rain to replenish the reservoirs. You can see that on the left-hand side of the slide, the year-over-year delta in hydro production was largely stored in the reservoirs. Now we're at 83% in July, well above historical averages and the highest levels in the past decade. Positioning us well, I think, for the next couple of months. Even though we had lower generation year-over-year, the hydro output remained above average. The uncontracted volumes were sold at higher prices year-over-year, with the Iberian pool price reaching EUR 62 per megawatt hour versus EUR 39 per megawatt hour in H1 2024.

Miguel Stilwell de Andrade: Which started the year at around 60%. That was already, you know, significantly below the 80% that we'd seen at the beginning of 2024. We use a lot of that rain to replenish the reservoirs. You can see that on the left-hand side of the slide, the year-over-year delta in hydro production was largely stored in the reservoirs. Now we're at 83% in July, well above historical averages and the highest levels in the past decade. Positioning us well, I think, for the next couple of months. Even though we had lower generation year-over-year, the hydro output remained above average. The uncontracted volumes were sold at higher prices year-over-year, with the Iberian pool price reaching EUR 62 per megawatt hour versus EUR 39 per megawatt hour in H1 2024.

Despite that hydrogen generation was lower year on year; that's because the rainfall was primarily used to establish reservoir levels, mostly during the first half of the first quarter, which started the year at around 60%.

Miguel Stilwell de Andrade: We used a lot of that rain to replenish the reservoirs. You can see that on the left-hand side of the slide, the year-on-year delta in hydro production was largely stored in the reservoirs. Now we are at 83% in July, well above historical averages and the highest levels in the past decade, positioning us well, I think, for the next couple of months. Even though we had lower generation year on year, the hydro output remained above average. The uncontracted volumes were sold at higher prices year on year, with the Iberian pool price reaching 62 euros per megawatt hour versus 39 euros per megawatt hour in the first half of 2024. Contracted volumes, however, were sold at a lower price, namely 70 euros per megawatt hour versus 90 euros per megawatt hour in the first half of last year. That was already pretty much expected.

And that was already, you know, significantly below the 80% that we saw at the beginning of 2024. So we used a lot of that rain to replenish the reservoirs. You can see that on the left-hand side of the slide, the year-on-year delta in hydro production was largely stored.

Um, in the reservoirs. And so, now we're at 83% in July, well above historical averages and the highest levels in the past decade.

Um, so positioning us. Well, I think for the next couple of months,

Miguel Stilwell d'Andrade: Contracted volumes, however, were sold at a lower price, namely EUR 70 per megawatt hour versus EUR 90 per megawatt hour in H1 2023. That was already pretty much expected. I mean, as you know, we go on forward hedging, and obviously the hedges for this year were lower than last year, but that was already baked into, I think, to everyone's estimates. Overall, the strong performance in H1 of the year, combined with the high reservoir levels, gives us very strong confidence for the remainder of the year. If we move on to slide 6. As I mentioned, a strong H1 of the year, meaning that we update our guidance for the segment in 2025 to the top end of the range we'd previously given.

Miguel Stilwell de Andrade: Contracted volumes, however, were sold at a lower price, namely EUR 70 per megawatt hour versus EUR 90 per megawatt hour in H1 2023. That was already pretty much expected. I mean, as you know, we go on forward hedging, and obviously the hedges for this year were lower than last year, but that was already baked into, I think, to everyone's estimates. Overall, the strong performance in H1 of the year, combined with the high reservoir levels, gives us very strong confidence for the remainder of the year. If we move on to slide 6. As I mentioned, a strong H1 of the year, meaning that we update our guidance for the segment in 2025 to the top end of the range we'd previously given.

So, even though we had lower generation year on year, the higher output remained above average, and the uncontracted volumes were sold at higher prices year on year, with the Iberian Pool price reaching €62 per megawatt hour versus €39 per megawatt hour in the first half of 2024.

Miguel Stilwell de Andrade: As you know, we go on forward hedging, and obviously, the hedges for this year were lower than last year, but that was already baked into, I think, everyone's estimates. Overall, the strong performance in the first half of the year, combined with the high reservoir levels, gives us very strong confidence for the remainder of the year. If we move on to slide six, as I mentioned, a strong first half of the year, meaning that we update our guidance for the segment in 2025 to the top end of the range we had previously given. At the time of the last results conference call, we had said that integrated Iberian EBITDA of around 1.1 to 1.2 billion. We are now expecting to be more toward the 1.2 billion, with the bulk of it already locked in, around 80% margin locked in.

Contracted volumes. However, were sold at a lower price, namely, 70 years, per megawatt hour, versus 90 years per megawatt hour in the first half of last year. So, that was already pretty much expected. I mean, as you know, we we go on forward hedging and obviously the hedges for this year were were lower than last year, but that was already baked into, I think to everyone's estimates,

Half of the year combined, with the high reservoir levels, gives us very strong confidence for the remainder of the year.

If we move on to cite 6, um,

Miguel Stilwell d'Andrade: At the time of the last results conference call, we'd said that, you know, integrated Iberian EBITDA of around EUR 1.1 to 1.2 billion. We're now expecting to be more towards the EUR 1.2 billion, with the bulk of it already locked in, so around 80% margin locked in. Key drivers for the delivery of this guidance are high weight of locked-in margin. Assuming the normalized volumes and going forward. A strong first half, but with some normalization already seen in the Q2. As usual, a Q3, which just naturally has lower hydro volumes. I mean, July was lower than average, but in general, this quarter is lower. Towards the second half of the year, we expect higher sourcing costs. In line with the trend we've experienced in the Q2.

Miguel Stilwell de Andrade: At the time of the last results conference call, we'd said that, you know, integrated Iberian EBITDA of around EUR 1.1 to 1.2 billion. We're now expecting to be more towards the EUR 1.2 billion, with the bulk of it already locked in, so around 80% margin locked in. Key drivers for the delivery of this guidance are high weight of locked-in margin. Assuming the normalized volumes and going forward. A strong first half, but with some normalization already seen in the Q2. As usual, a Q3, which just naturally has lower hydro volumes. I mean, July was lower than average, but in general, this quarter is lower. Towards the second half of the year, we expect higher sourcing costs. In line with the trend we've experienced in the Q2.

So, as I mentioned, a strong first half of the year means that we update our guidance for the segment in 2025 to the top end of the range we previously gave.

Miguel Stilwell de Andrade: Key drivers for the delivery of this guidance are high weight of locked-in margin, assuming the normalized volumes then going forward. A strong first half, but with some normalization already seen in the second quarter. As usual, a third quarter, which just naturally has lower hydro volumes. July was lower than average, but in general, this quarter is lower. Towards the second half of the year, we expect higher sourcing costs. In line with the trend we have experienced in the second quarter, we expect that the system operator will continue to call on thermal generation, which, as you know, has lower margins in terms of the ancillary services. This, combined with the summer months, will lead to a lower weight of hydrogeneration in the total generation mix, increasing our sourcing costs for the second half of the year.

So, at the time of the last results conference call, we said that, you know, integrated Iberian EBA around 1.1 to 1.2 billion. We're now expecting to be more towards a 1.2 billion with the bulk of it, already locked in. So around 80% margin locked in.

Key drivers for the delivery of this guidance are, um, High weight of locked in margin. So assuming the normalized volumes, then going forward a strong. First half goes from normalization already, seen in the second quarter and as usual, a third quarter, which just naturally has lower Hydro volumes. I mean, July was lower than the, the average, but in general, this, this quarter is is lower.

Miguel Stilwell d'Andrade: We expect that the system operator will continue to call on thermal generation, which, as you know, has lower margins in terms of the ancillary services. This, combined with the summer months, will lead to a lower weight of hydro generation in the total generation mix. Increasing our sourcing costs for the second half of the year. On Q4, we've already faced some costs with ancillary services on the supply side, which we expect to persist in the second half of the year. On the positive side, we have very strong reservoir levels, as I mentioned. We are seeing an increase in the Spanish future power base load forward prices at more than EUR 70 per megawatt hour in the second half of 2025. Some positives, some negatives. I think driving us through this second half.

Miguel Stilwell de Andrade: We expect that the system operator will continue to call on thermal generation, which, as you know, has lower margins in terms of the ancillary services. This, combined with the summer months, will lead to a lower weight of hydro generation in the total generation mix. Increasing our sourcing costs for the second half of the year. On Q4, we've already faced some costs with ancillary services on the supply side, which we expect to persist in the second half of the year. On the positive side, we have very strong reservoir levels, as I mentioned. We are seeing an increase in the Spanish future power base load forward prices at more than EUR 70 per megawatt hour in the second half of 2025. Some positives, some negatives. I think driving us through this second half.

Miguel Stilwell de Andrade: On the last quarter, we have already faced some costs with ancillary services on the supply side, which we expect to persist in the second half of the year. On the positive side, we have very strong reservoir levels, as I mentioned, and we are seeing an increase in the Spanish future power baseload forge prices at more than 70 euros per megawatt hour in the second half of 2025. Some positives, some negatives, I think, driving us through this second half. If we move to electricity networks in Liberia on slide seven and the regulatory outlook, I would say the first point I wanted to make here is that it is really important to have a supportive framework and adequate returns to enable the investments for the energy transition.

And then towards the second half of the year, we expect higher sourcing costs. So in line with the trend we've experienced in the second quarter, we expect that the system operator will continue to call on thermal generation which is, you know, has lower margins in terms of the the ancillary services. So this combined with the summer months will lead to a lower weight of hydrogen generation in the total generation mix. So increasing our sourcing costs for the second half of the year.

Then on the last quarter, we've already faced some costs with ancillary services on the supply side, which we expect to persist in the second half of the year.

On the positive side, we have very strong reservoir levels, as I mentioned, and we are seeing an increase in the Spanish future.

Miguel Stilwell d'Andrade: If we move to electricity networks in Iberia. On slide 7. The regulatory outlook. I'd say the first point I wanted to make here is that it's really important to have a supportive framework and adequate returns to enable the investments for the energy transition. As you know, in Spain, the regulator launched a public consultation proposing a 6.46% return for the next regulatory period, together with the phased transition to a TOTEX model starting in 2029. However, we believe that these returns or the proposed returns are clearly short of European average, where the returns for electricity networks are above 7%. We hope that the ongoing discussions will result in an improved return that Spain could converge to this benchmark. The proposal from the regulator is currently under public consultation. We'll be submitting our comments by early August.

Miguel Stilwell de Andrade: If we move to electricity networks in Iberia. On slide 7. The regulatory outlook. I'd say the first point I wanted to make here is that it's really important to have a supportive framework and adequate returns to enable the investments for the energy transition. As you know, in Spain, the regulator launched a public consultation proposing a 6.46% return for the next regulatory period, together with the phased transition to a TOTEX model starting in 2029. However, we believe that these returns or the proposed returns are clearly short of European average, where the returns for electricity networks are above 7%. We hope that the ongoing discussions will result in an improved return that Spain could converge to this benchmark. The proposal from the regulator is currently under public consultation. We'll be submitting our comments by early August.

Um, our baseload force prices are at more than $70 per megawatt hour in the second half of 2025. So, some positives, some negatives. Um, I think driving us through this second half.

If we move to electricity networks in Iberia,

On site 7.

and the regulatory Outlook, um,

Miguel Stilwell de Andrade: As you know, in Spain, the regulator launched a public consultation proposing a 6.46% return for the next regulatory period, together with a phased transition to a TOTEX model starting in 2029. However, we believe that these returns, or the proposed returns, are clearly short of the European average, where the returns for electricity networks are above 7%. We hope that the ongoing discussions will result in an improved return that Spain could converge to this benchmark. The proposal from the regulator is currently under public consultation. We will be submitting our comments by early August, and by the end of the year, we should have the new regulatory framework and investment limits approved. I mean, hopefully, well before that, we will have better visibility on these issues. In Portugal, the need for higher returns is equally important.

I'd say the first point I wanted to make here is that it's really important to have a supportive framework and adequate returns to enable the investments for the energy transition.

As you know, in Spain, the regulator launched a public consultation proposing a 6.46% return for the next regulatory period, together with the phase transition for Tox models starting in 2029.

Our. We however, we believe that these returns are the proposed returns are clearly short of the European average where the returns for electricity networks are above 7%.

So, we hope that the ongoing discussions will result in an improved return, and that Spain could converge to this benchmark.

Miguel Stilwell d'Andrade: By the end of the year, we should have the new regulatory framework and investment limits approved. I mean, hopefully, well before that, we'll have better visibility on these issues. In Portugal, the need for higher returns is equally important. As you recall, we have proposed a 50% increase in high and medium voltage investments. Which has already received a favorable opinion from the regulator without any material impact on the end user tariffs. However, the implementation is still subject to the final regulatory framework and return definitions. As I just mentioned. In relation to Spain, the same is true for Portugal. The return rate in Portugal should clearly be adjusted to ensure that the required investments are attractive and can be executed. We need a more modern and more digital and an expansion of the grid infrastructure.

Miguel Stilwell de Andrade: By the end of the year, we should have the new regulatory framework and investment limits approved. I mean, hopefully, well before that, we'll have better visibility on these issues. In Portugal, the need for higher returns is equally important. As you recall, we have proposed a 50% increase in high and medium voltage investments. Which has already received a favorable opinion from the regulator without any material impact on the end user tariffs. However, the implementation is still subject to the final regulatory framework and return definitions. As I just mentioned. In relation to Spain, the same is true for Portugal. The return rate in Portugal should clearly be adjusted to ensure that the required investments are attractive and can be executed. We need a more modern and more digital and an expansion of the grid infrastructure.

The proposal from the regulator is currently under public consultation. We will be submitting our comments by early August, and by the end of the year, we should have the new regulatory framework and investment limits approved. I mean, hopefully, well before that, we’ll have better visibility on these issues.

Miguel Stilwell de Andrade: As you recall, we have proposed a 50% increase in high and medium voltage investments, which has already received a favorable opinion from the regulator without any material impact on the end user tariffs. However, the implementation is still subject to the final regulatory framework and return definitions. As I just mentioned, in relation to Spain, the same is true for Portugal. The return rate in Portugal should clearly be adjusted to ensure that the required investments are attractive and can be executed. We need a more modern, a more digital, and an expansion of the grid infrastructure. I think it is important to note that in Portugal, we still have the extraordinary tax, although that is not applicable to new investments and meters that are not remunerated. Clearly, there needs to be an upward adjustment of the returns if we are to see this additional investment.

In Portugal, the need for higher returns is equally important.

And as you recall, we have proposed a 50% increase in high medium voltage investments, which has already received the favorable opinion from the regulator without any material impact on the end-user tariffs.

However, the implementation is still subject to the final regulatory framework and return definitions.

As I just mentioned.

In relation to Spain, the same is true for Portugal. So the return rate in Portugal, should clearly be adjusted to ensure that the required Investments are attractive and can be executed.

Miguel Stilwell d'Andrade: I think it's important to note that in Portugal, we still have the extraordinary tax, although that's not applicable to new investments. Meters that are not remunerated. Clearly, there needs to be an upward adjustment of the returns if we are to see this additional investment. Regarding the key milestones for Portugal. In relation to the regulated revenues framework for 2026 to 2029. We should get visibility on that on 15 October. The regulator will release the proposal for the regulated revenues in 2026, and the assumptions also for the new regulatory period. 15 December, as usual, is when we would have the final decision. Hopefully, the proposal will already reflect the big. Yes, it was the key guidelines and numbers. If we move on to slide 8 and talking a little bit about networks in Brazil.

Miguel Stilwell de Andrade: I think it's important to note that in Portugal, we still have the extraordinary tax, although that's not applicable to new investments. Meters that are not remunerated. Clearly, there needs to be an upward adjustment of the returns if we are to see this additional investment. Regarding the key milestones for Portugal. In relation to the regulated revenues framework for 2026 to 2029. We should get visibility on that on 15 October. The regulator will release the proposal for the regulated revenues in 2026, and the assumptions also for the new regulatory period. 15 December, as usual, is when we would have the final decision. Hopefully, the proposal will already reflect the big. Yes, it was the key guidelines and numbers. If we move on to slide 8 and talking a little bit about networks in Brazil.

We need a more modern and more digital and an expansion of the the grid infrastructure.

And I think it's important to note in that in Portugal, we still have the extraordinary tax, although that's not applicable to new Investments.

Miguel Stilwell de Andrade: Regarding the key milestones for Portugal, in relation to the regulated revenues framework for 2026 to 2029, we should get visibility on that on October 15. The regulator will release the proposal for the regulated revenues in 2026 and the assumptions also for the new regulatory period. December 15, as usual, is when we would have the final decision. Hopefully, the proposal will already reflect a bit of the key guidelines and numbers. If we move on to slide eight and talking a little bit about networks in Brazil, a couple of important points here. First, we recently signed, earlier this month, the 30-year concession extension for EDP Espírito Santo. That is now in place until 2055. This was really important.

And meters that are not remunerated. So, clearly, there needs to be an upward adjustment of the returns. If we are to see this, um, additional investment.

Regarding the key milestones for portuale.

In relation to the regulated revenues framework for 20126 to 29. Uh we should get visibility on that on the 15th of October so the the regular regulator will release the proposal for the regulated revenues in 2026 and the assumptions. Also for the new regulatory period December 15th as usual is when we would have the the final decision but hopefully the proposal will already reflect the big. Yes. Of the, the key guidelines and and numbers.

We move on to slide 8 and talk a little bit about networks in Brazil.

Miguel Stilwell d'Andrade: A couple of important points here. First, we recently signed, so earlier this month. The 30-year concession extension for EDP Espírito Santo. That is now in place until 2055. This was really important. I know we had already got and we had flagged some visibility that this was going to be extended, we have now actually signed the contract with the presence of the government and the state governor. We have been working, obviously, very closely with the Brazilian government to get this done. The concession for Espírito Santo was expiring now in July, it was really important to get this extension actually formally approved and signed, and that has been done. They have been renewed with no upfront financial burden. Obviously, with clear performance standards in terms of quality, efficiency, and financial metrics.

Miguel Stilwell de Andrade: A couple of important points here. First, we recently signed, so earlier this month. The 30-year concession extension for EDP Espírito Santo. That is now in place until 2055. This was really important. I know we had already got and we had flagged some visibility that this was going to be extended, we have now actually signed the contract with the presence of the government and the state governor. We have been working, obviously, very closely with the Brazilian government to get this done. The concession for Espírito Santo was expiring now in July, it was really important to get this extension actually formally approved and signed, and that has been done. They have been renewed with no upfront financial burden. Obviously, with clear performance standards in terms of quality, efficiency, and financial metrics.

A couple of important points here: first, we recently signed, earlier this month.

The 30-year concession extension for EDP did send, so that's now in place until 2055.

Miguel Stilwell de Andrade: I know we had already got, and we had flagged some visibility that this was going to be extended, but we have now actually signed the contract with the presence of the government and the state governor. We have been working, obviously, very closely with the Brazilian government to get this done. The concession for Espírito Santo was expiring now in July, so it was really important to get this extension actually formally approved and signed. That has been done. They have been renewed with no upfront financial burden, but obviously with clear performance standards in terms of quality, efficiency, and financial metrics. I think one of the interesting things about Brazil is they have extended the concessions because they recognize that we have managed them well. We have provided good quality of service. We have provided good investments, contributed to the electrification of the economy.

some visibility that this was going to be extended, but we've now actually signed the contract in

With the presence of the government and the state governor.

Um, and we've been working obviously very closely with the Brazilian government to, to get this done. Um, the confession for Speed Central is expiring now in July. So it was really important to, to get this extension. Actually formally approved and signed and, and that's been done.

They've been renewed with no upfront financial burden.

Miguel Stilwell d'Andrade: I think one of the things, interesting things about Brazil is they've extended the concessions. They recognize that we've managed them well. We've provided good quality of service. We've provided good investments, you know, contributed to the electrification of the economy. I think we are reference players in the sector. Our operations are clearly aligned with the regulated requirements. That was very positive news there. We also expect EDP São Paulo concession to be extended. From 2028 to 2058 under similar terms. That renewal has also been approved by the regulator. We're still pending the signature, but the regulator has already given the green light on that. Looking ahead, the tariff review for EDP Espírito Santo scheduled for August 2025. They're setting the regulatory parameters for the period 2025 to 2030.

Miguel Stilwell de Andrade: I think one of the things, interesting things about Brazil is they've extended the concessions. They recognize that we've managed them well. We've provided good quality of service. We've provided good investments, you know, contributed to the electrification of the economy. I think we are reference players in the sector. Our operations are clearly aligned with the regulated requirements. That was very positive news there. We also expect EDP São Paulo concession to be extended. From 2028 to 2058 under similar terms. That renewal has also been approved by the regulator. We're still pending the signature, but the regulator has already given the green light on that. Looking ahead, the tariff review for EDP Espírito Santo scheduled for August 2025. They're setting the regulatory parameters for the period 2025 to 2030.

Miguel Stilwell de Andrade: I think we are reference players in the sector, and our operations are clearly aligned with the regulator's requirements. That was very positive news there. We also expect EDP's São Paulo concession to be extended from 2028 to 2058 under similar terms. That renewal has also been approved by the regulator. We are still pending the signature, but the regulator has already given the green light on that. Looking ahead, the tariff review for EDP Espírito Santo is scheduled for August 2025. They are setting the regulatory parameters for the period 2025 to 2030. The regulatory period has been extended from three years to five years. Just some preliminary figures from the public consultation, I think they show a return on RAB increasing from 7.15% to 8.03%. It is also a 46% increase in the regulated asset base.

But obviously, with clear performance standards in terms of quality efficiency and and financial metrics, I think 1 of the things interesting things about Brazil is they've extended the concessions because they recognize that, we've managed them. Well, we provide a good quality of service, we've provided um, good Investments, you know, contributed to the electrification of um, of the economy and so I think we are reference players in the sector, um, and our operations are are clearly aligned with the the regulated requirements. So,

That was.

Very positive news there. We also expect EPS on the Paul concession to be extended.

from 2028 to 2058 under similar terms.

Miguel Stilwell d'Andrade: The regulatory period has been extended from 3 years to 5 years. Just, you know, some preliminary figures from the public consultation. I think they show a return on RAB increasing from 7.15% to 8.03%. It's and also a 46% increase in the regulated asset base. Good recognition of the investments that we've executed over the last couple of years. All in all, I think reinforcing long-term visibility and stability of our distribution business in Brazil. Supporting our investment plan. Of around 3.3 billion reais in electricity distribution in Brazil. For 2025 and 2026. If we move now to slide 9 and wind and solar. Again, just quickly highlighting a couple of comments here because we. We already touched on some of these in yesterday's call.

Miguel Stilwell de Andrade: The regulatory period has been extended from 3 years to 5 years. Just, you know, some preliminary figures from the public consultation. I think they show a return on RAB increasing from 7.15% to 8.03%. It's and also a 46% increase in the regulated asset base. Good recognition of the investments that we've executed over the last couple of years. All in all, I think reinforcing long-term visibility and stability of our distribution business in Brazil. Supporting our investment plan. Of around 3.3 billion reais in electricity distribution in Brazil. For 2025 and 2026. If we move now to slide 9 and wind and solar. Again, just quickly highlighting a couple of comments here because we. We already touched on some of these in yesterday's call.

That renewal has also been approved by the regulator. We're still pending the the signature, but the, The Regulators already given the green light on that, looking ahead, the Tariff review for EDP speeds. And the scheduled for August 2025, they're setting the regulatory parameters for the the per 25 to 2030. So the regulatory period has been extended from 3 years to 5 years.

Miguel Stilwell de Andrade: So, good recognition of the investments that we've executed over the last couple of years. All in all, I think reinforcing long-term visibility and stability of our distribution business in Brazil and supporting our investment plan of around 3.3 billion reais in electricity distribution in Brazil for 2025 and 2026. If we move now to slide nine and wind and solar, again, just quickly highlighting a couple of comments here because we already touched on some of these in yesterday's call. We're on track to deliver the two gigawatts of new wind and solar capacity in 2025. 70% of it planned for the fourth quarter. The execution is progressing on time and on budget, so I think highly confident on that.

And just so you know, some preliminary figures from the public consultation indicate a return on W increasing from 7.15% to 8.03%. There was also a 46% increase in the regulated asset base, which is good recognition of the investments that we've executed over the last couple of years. All in all.

I think reinforcing long-term visibility and stability for our distribution business, in Brazil and supporting our investment plan of around, 3.3 billion riage in electricity distribution, in Brazil for 2025 and 2026.

if we move now to slide 9 and um, and wins in solar,

Again.

just, um, quickly highlighting a couple of of comments here because we

Miguel Stilwell d'Andrade: We're on track to deliver the 2 gigawatts of new wind and solar capacity in 2025. 70% of it planned for the Q4. The execution is progressing on time and on budget. I think highly confident on that. Looking ahead to 2026, we already have good visibility with up to one and a half gigawatts of capacity additions, of which 65% is already secured. Mostly in low risk markets of the US and Europe. The rest is under advanced negotiation. On the asset rotation side, execution also progressing very well. As you know, we targeted around EUR 2 billion of proceeds for 2025. We've already closed a significant percentage of this. In Spain, US, Belgium, France, more recently Greece. The remaining EUR 1.3 billion is already under binding bids. As we've previously stated, we expect around EUR 0.1 billion in gains.

Miguel Stilwell de Andrade: We're on track to deliver the 2 gigawatts of new wind and solar capacity in 2025. 70% of it planned for the Q4. The execution is progressing on time and on budget. I think highly confident on that. Looking ahead to 2026, we already have good visibility with up to one and a half gigawatts of capacity additions, of which 65% is already secured. Mostly in low risk markets of the US and Europe. The rest is under advanced negotiation. On the asset rotation side, execution also progressing very well. As you know, we targeted around EUR 2 billion of proceeds for 2025. We've already closed a significant percentage of this. In Spain, US, Belgium, France, more recently Greece. The remaining EUR 1.3 billion is already under binding bids. As we've previously stated, we expect around EUR 0.1 billion in gains.

We already touched on some of these in yesterday's call. We're on track to deliver the 2 gigawatts of new wind and solar capacity in 2025.

Um, 70% of the plan for the fourth quarter.

Miguel Stilwell de Andrade: Looking ahead to 2026, we already have good visibility with up to 1.5 gigawatts of capacity additions, of which 65% is already secured, mostly in low-risk markets, so the U.S. and Europe. The rest is under advanced negotiation. On the asset rotation side, execution also progressing very well. As you know, we targeted around two billion euros of proceeds for 2025. We've already closed a significant percentage of this in Spain, U.S., Belgium, France, more recently Greece. The remaining 1.3 billion is already under binding bids. As we've previously stated, we expect around 0.1 billion in gains. Most of the proceeds concentrated, obviously, in the second half of the year, more towards the end of the year. Besides the wind and solar transactions, I just also wanted to highlight that we are successfully executing our capacity additions plan and ensuring we have the financial flexibility to reinvest in future growth.

The execution is progressing on time and on budget, so I feel highly confident about that.

Looking ahead to 2026, we already have good visibility, it was up to 1 and a half gigawatts of capacity additions of which 65% is already secured mostly in low-risk markets of the US and Europe and the rest is um under Advanced negotiation.

On the asset rotation side, execution is progressing very well. As you know, we targeted around €2 billion of proceeds for 2025.

Um, we've already closed a significant percentage of this in Spain. Us, Belgium, France, and more recently in Greece. Um, the remaining $1.3 billion is already under binding bids.

Miguel Stilwell d'Andrade: Most of the proceeds concentrated, obviously, in the second half of the year, more towards the end of the year. Besides the wind and solar transactions, I just also wanted to highlight that we are successfully executing our capacity additions plan, ensuring we have the financial flexibility to reinvest in future growth. I just wanted to touch here very quickly on the issue, one of the issues which was raised around data centers. I mean, we have strong connections with a lot of the clean, the big tech. We have assets and expertise that allow us to really benefit from and support the expected data center growth. The focus has been on our side in promoting loads. Just supply contracts as we've been doing with many of the solar and wind projects.

Miguel Stilwell de Andrade: Most of the proceeds concentrated, obviously, in the second half of the year, more towards the end of the year. Besides the wind and solar transactions, I just also wanted to highlight that we are successfully executing our capacity additions plan, ensuring we have the financial flexibility to reinvest in future growth. I just wanted to touch here very quickly on the issue, one of the issues which was raised around data centers. I mean, we have strong connections with a lot of the clean, the big tech.

As we've previously stated, we expect around $0.1 billion in gains.

Most of the proceeds concentrated obviously in the second half of the year more towards the end of the year.

Besides the wind and solar transactions. Um,

I just also wanted to highlight, uh,

That.

We are successfully executing our capacity additions plan and ensuring we have the financial flexibility to reinvest in future growth.

Miguel Stilwell de Andrade: I just wanted to touch here very quickly on the issue, one of the issues which was raised around data centers. We have strong connections with a lot of the big tech. We have assets and expertise that allow us to really benefit from and support the expected data center growth. The focus has been on our side in promoting load, either just supply contracts, as we've been doing with many of the solar and wind projects, having PPAs directly with the big tech. But we've also been promoting load colocation with renewable development, so leveraging on shared grid connection infrastructure and land and powered land opportunities. I think we do have a good portfolio that's very suited for colocation opportunities in both the U.S. and Iberia. In the U.S., we have renewable assets with mixed technologies, with scale, so we can facilitate connection to large data center developments.

I I just wanted to touch here very quickly on um on the issue, 1 of the issues, which was raised around data centers.

Miguel Stilwell de Andrade: We have assets and expertise that allow us to really benefit from and support the expected data center growth. The focus has been on our side in promoting loads. Just supply contracts as we've been doing with many of the solar and wind projects.

Um I mean we we have strong connections with a lot of the the clean the the big Tech.

We have assets and expertise that allow us to really benefit from and support the expected data center growth.

Miguel Stilwell d'Andrade: Having PPAs directly with the big tech. We've also been promoting load colocation with renewable development, so leveraging on shared grid connection infrastructure and powered land opportunities. I think we do have a good portfolio. That's very suited for colocation opportunities in both the US and Iberia. I mean, in the US. You know, we have renewable assets with mixed technologies with scale. We can facilitate connection to large data center developments. I mean, they obviously have a wide geographic footprint. Some of our assets are located near existing or potential data center hubs. Our assets can also operate as a door to electricity grid. Through our substations and power lines, so reducing costs and time to market. And that's something we've been working on in our.

Miguel Stilwell de Andrade: Having PPAs directly with the big tech. We've also been promoting load colocation with renewable development, so leveraging on shared grid connection infrastructure and powered land opportunities. I think we do have a good portfolio. That's very suited for colocation opportunities in both the US and Iberia. I mean, in the US.

The focus has been on our side in promoting load, while others just supply contracts. We have been doing this with many of the solar and wind projects having PPAs directly with the big tech.

But we've also been promoting load collocation with the renewable development. So leveraging on shared grid connection infrastructure and land and and powered land opportunities.

Miguel Stilwell de Andrade: You know, we have renewable assets with mixed technologies with scale. We can facilitate connection to large data center developments. I mean, they obviously have a wide geographic footprint. Some of our assets are located near existing or potential data center hubs. Our assets can also operate as a door to electricity grid. Through our substations and power lines, so reducing costs and time to market. And that's something we've been working on in our.

I think we do have a good portfolio that's very suited for co-location opportunities in both the U.S. and Iberia. I mean, in the U.S.

Miguel Stilwell de Andrade: They obviously have a wide geographic footprint. Some of our assets are located near existing or potential data center hubs. Our assets can also operate as a door to the electricity grid through our substations and power lines, reducing costs and time to market. That is something we have been working on. There is even some public news recently in Texas, for example, relating to that. In Iberia, we have several renewable assets under development that may connect directly to data centers or in Spain be leveraged to secure grid connections for demand. We also have several plots of land on the sites of thermal power plants, some of them in good connections and good location for data centers.

You know, we have renewal assets with mixed technologies and scale, and we can facilitate connections to large data center developments. I mean, they obviously have a wide geographic footprint. Some of our assets are located near existing or potential data center hubs.

Miguel Stilwell d'Andrade: There's even some public news recently in Texas, for example, relating to that. In Iberia, we have several renewable assets under development that may connect directly to data centers. In Spain be leveraged to secure grid connections for demand. We also have several plots of land on the sites of thermal power plants, some of them in good connections. In good location for data centers. Recently, for example, we also did. Well, we have an agreement with MERLIN to do a 100 megawatts. Actually behind the meter. Sort of. With a direct connection to a data center that's been developed there. I think we have a lot of good examples of the way that we are. Continuing to serve this demand growth. That's coming out from the data center growth. If we move forward to OPEX. Here again. Very strong performance.

Miguel Stilwell de Andrade: There's even some public news recently in Texas, for example, relating to that. In Iberia, we have several renewable assets under development that may connect directly to data centers. In Spain be leveraged to secure grid connections for demand. We also have several plots of land on the sites of thermal power plants, some of them in good connections.

Grid through our substations and power lines, so reducing costs and time to Market. And and that's something we've been, uh, working on in our and there's even some public news recently, um, in Texas, for example, relating to that in Iberia, we have several renewable assets under development, that may connect directly to data centers or in Spain. Be leveraged to secure, great connections for demand. So we also have

Miguel Stilwell de Andrade: In good location for data centers. Recently, for example, we also did. Well, we have an agreement with MERLIN to do a 100 megawatts. Actually behind the meter. Sort of. With a direct connection to a data center that's been developed there. I think we have a lot of good examples of the way that we are. Continuing to serve this demand growth. That's coming out from the data center growth. If we move forward to OPEX. Here again. Very strong performance.

Miguel Stilwell de Andrade: Recently, for example, we also did, we have an agreement with Merlin to do a 100 megawatts actually behind the meter, with a direct connection to a data center that is being developed there. I think we have a lot of good examples of the way that we are continuing to serve this demand growth that is coming out from the data center growth. If we move forward to OpEx, here again, very strong performance, really delivering a lot of efficiency gains. We have done a big organizational simplification and streamlining, and we are also investing heavily in digital and automating several of the processes. This is an ongoing continuous process that we are driving throughout the company.

Several plots of land are located on the site of thermal power plants. Some of them are in good locations for data centers.

Recently, for example, we also did a or we have an agreement with Merlin to do a 100 megawatts.

Actually behind the meter sort of um, with a direct connection to a data center that's been developed there. So I think we have a lot of good examples of the Way That We are continuing to serve this demand growth. Um, that's coming out from um, from the data center growth,

if we move forward to Opex,

Um, here again.

Miguel Stilwell d'Andrade: Really delivering a lot of efficiency gains. We've done a big organizational simplification and streamlining, and we are also investing heavily in digital and just sort of automating several of the processes. I mean, this is an ongoing, continuous process that we are driving throughout the company. We actually reduced nominally OPEX. It decreased to around EUR 930 million in the First Half 2025, down from EUR 960 million in the First Half 2024, despite a 3% inflation in this period, and despite a tremendous growth of megawatts and grids in this period. A 6% decrease in real terms at the same time that we are significantly growing the company. This is really significant gains in productivity and efficiency. We are obviously working very much on the supplies and services side, but we're also working on our workforce structure, making sure it's aligned with our.

Miguel Stilwell de Andrade: Really delivering a lot of efficiency gains. We've done a big organizational simplification and streamlining, and we are also investing heavily in digital and just sort of automating several of the processes. I mean, this is an ongoing, continuous process that we are driving throughout the company. We actually reduced nominally OPEX.

Very strong performance.

Really delivering a lot of efficiency gains.

Miguel Stilwell de Andrade: We actually reduced nominally OpEx, so it decreased to around 930 million in the first half of 2025, down from 960 million in the first half of 2024, despite a 3% inflation in this period and despite a tremendous growth of megawatts and grids in this period. So a 6% decrease in real terms at the same time that we are significantly growing the company. This is really significant gains in productivity and efficiency. We are obviously working very much on the supplies and services side, but we are also working on our workforce structure, making sure it is aligned with our future growth trajectory. You can see the number of employees actually decreased 5% year on year, and there has been an overall decrease in headcount since the first half of 2023.

We've done a big organizational simplification and streamlining and we were also investing heavily in digital and just sort of automating several of the processes. I mean, this is an ongoing continuous process that we are driving throughout the company.

We actually reduced.

Miguel Stilwell de Andrade: It decreased to around EUR 930 million in the First Half 2025, down from EUR 960 million in the First Half 2024, despite a 3% inflation in this period, and despite a tremendous growth of megawatts and grids in this period. A 6% decrease in real terms at the same time that we are significantly growing the company. This is really significant gains in productivity and efficiency. We are obviously working very much on the supplies and services side, but we're also working on our workforce structure, making sure it's aligned with our.

Nominally Opex, um, so it decreased to around $930 million in the first half of 2025, down from $960 million, despite 3% inflation in this period and despite a tremendous growth of megawatts and grids in this period. So, the 6% decrease in real terms, at the same time that we are significantly growing the company. So, this is really significant gains in productivity and efficiency.

Miguel Stilwell d'Andrade: Future growth trajectory. You can see the number of employees actually decreased 5% year-on-year. There's been just an overall decrease in headcount since the First Half 2023. If you look at the OPEX over gross profit. Clearly, the trend is very positive. We're decreasing from 26% down to 24% in the First Half 2024 if 2025. Again, very focused on having lean operations, centralized procurement, implementation of AI and digital driven initiatives to optimize O&M, decision making, customer experience. All of this while making a really strong effort to keep also the human side of the business. We are very focused on keeping talent, making sure people are engaged, making sure they're adapted, making sure that there's full dedication to being enablers of this transformation. We're focused on making sure that we have the best people.

Miguel Stilwell de Andrade: Future growth trajectory. You can see the number of employees actually decreased 5% year-on-year. There's been just an overall decrease in headcount since the First Half 2023. If you look at the OPEX over gross profit. Clearly, the trend is very positive. We're decreasing from 26% down to 24% in the First Half 2024 if 2025. Again, very focused on having lean operations, centralized procurement, implementation of AI and digital driven initiatives to optimize O&M, decision making, customer experience. All of this while making a really strong effort to keep also the human side of the business. We are very focused on keeping talent, making sure people are engaged, making sure they're adapted, making sure that there's full dedication to being enablers of this transformation. We're focused on making sure that we have the best people.

We are obviously, uh, working very much on the supplies and services side, but we're also working on our workforce structure. Making sure we're aligned with our, uh, future growth trajectory. You can see the number of employees actually decreased 5% year-on-year, and um,

Miguel Stilwell de Andrade: If you look at the OpEx over gross profit, clearly the trend is very positive. We are decreasing from 26% down to 24% in the first half of 2025. Very focused on having lean operations, centralized procurement, implementation of AI and digital-driven initiatives to optimize O&M, decision-making, customer experience. All of this while making a really strong effort to keep also the human side of the business. We are very focused on keeping talent, making sure people are engaged, making sure they are adapted, and making sure that there is full dedication to being enablers of this transformation. We are focused on making sure that we have the best people to actually drive this change and drive these productivity gains.

and there's been just an overall decrease in headcount, since the first half of 2023,

If you look at the Opex over gross profit,

Clearly, the trend is very positive. We're decreasing from 26% down to 24% in the first half of 2024. If 2025...

And again, we are very focused on having lean operations, centralized procurements, and the implementation of AI and digital-driven initiatives to optimize decision-making and customer experience.

And all of this while making a really strong effort to keep also The Human Side of the business. So,

Miguel Stilwell d'Andrade: To actually drive this change and drive these productivity games. Looking ahead. Definitely committed to embedding this culture of continuous improvement, leveraging technology and data. To unlock further efficiencies and making sure that we keep our cost base agile and scalable as we grow. Continuing to drive these economies of scale. Looking at 2025, we're upgrading the guidance for 25, following the strong performance in the first half of this year. The integrated business. In Iberia has continued to outperform, as I mentioned. That's the key driver for this upgrading guidance. Contributing to around EUR 1.2 billion of EBITDA. As I mentioned, above average hydrogen generation and strong demand for flex gen. Electricity networks, we're seeing solid underlying growth. Supported by higher electricity consumption and the inflation update on regulated revenues. Wind and solar, we're targeting around EUR 1.9 billion of EBITDA.

Miguel Stilwell de Andrade: To actually drive this change and drive these productivity games. Looking ahead. Definitely committed to embedding this culture of continuous improvement, leveraging technology and data. To unlock further efficiencies and making sure that we keep our cost base agile and scalable as we grow. Continuing to drive these economies of scale. Looking at 2025, we're upgrading the guidance for 25, following the strong performance in the first half of this year. The integrated business. In Iberia has continued to outperform, as I mentioned. That's the key driver for this upgrading guidance. Contributing to around EUR 1.2 billion of EBITDA. As I mentioned, above average hydrogen generation and strong demand for flex gen. Electricity networks, we're seeing solid underlying growth. Supported by higher electricity consumption and the inflation update on regulated revenues. Wind and solar, we're targeting around EUR 1.9 billion of EBITDA.

Miguel Stilwell de Andrade: Looking ahead, we are definitely committed to embedding this culture of continuous improvement, leveraging technology and data to unlock further efficiencies, and making sure that we keep our cost base agile and scalable as we grow and continue to drive these economies of scale. Looking at 2025, we are upgrading the guidance for 2025, following the strong performance in the first half of this year. The integrated business in Iberia has continued to outperform, as I mentioned, and that is a key driver for this upgrade in guidance. This is contributing to around €1.2 billion of EBITDA, as I mentioned, above average hydrogeneration and strong demand for flex gen.

We are very focused on keeping talent, making sure people are engaged, making sure they're adapted, and ensuring that there's full dedication to being enablers of this transformation. So, we're focused on making sure that we have the best people to actually drive this change and drive these productivity gains.

Looking ahead.

Definitely committed to embedding this culture of continuous improvement, leveraging technology and data to unlock further efficiencies and making sure that we keep our cost base agile and scalable as we grow and continue to drive these economies of scale.

Looking at 2025, we're upgrading the guidance for 2025 following the strong performance in the first half of this year. So, the integrated business.

Liberia has continued to outperform, as I mentioned. Um, and that's the key driver for this upgrade and guidance. So contributing to around $1.2 billion of EBITDA.

Miguel Stilwell de Andrade: For electricity networks, we are seeing solid underlying growth supported by higher electricity consumption and the inflation update on regulated revenues. For wind and solar, we are targeting around €1.9 billion of EBITDA and we expect to deliver around €100 million in asset rotation gains in the second half of the year. As a result, putting all of this together, we are saying that our recurring EBITDA, we now expect it to be in the €4.8 billion to €4.9 billion range, net profit €1.2 billion to €1.3 billion range, and net debt remaining at around €16 billion, assuming €2 billion in asset rotation proceeds and €1 billion in tax equity proceeds.

Uh, as I mentioned above average, hydrogen generation and strong demand for flexion.

Miguel Stilwell d'Andrade: We expect to deliver around EUR 100 million in asset rotation gains in the second half of the year. As a result, putting all of this together, we're saying that our recurring EBITDA, we now expect it to be in the EUR 4.8 to 4.9 billion range. Net profit EUR 1.2 to 1.3 billion range, and net debt remaining at EUR 16 billion, around EUR 16 billion. Assuming EUR 2 billion in asset rotation proceeds and EUR 1 billion in tax equity proceeds. Obviously, and I've mentioned this before, we will be doing the capital markets day on 6 November 2024. We will be able to provide additional color and visibility on, not just 2025, but 2026, beyond and sort of talking a little bit about the strategy and the growth outlook. With that.

Miguel Stilwell de Andrade: We expect to deliver around EUR 100 million in asset rotation gains in the second half of the year. As a result, putting all of this together, we're saying that our recurring EBITDA, we now expect it to be in the EUR 4.8 to 4.9 billion range. Net profit EUR 1.2 to 1.3 billion range, and net debt remaining at EUR 16 billion, around EUR 16 billion. Assuming EUR 2 billion in asset rotation proceeds and EUR 1 billion in tax equity proceeds. Obviously, and I've mentioned this before, we will be doing the capital markets day on 6 November 2024. We will be able to provide additional color and visibility on, not just 2025, but 2026, beyond and sort of talking a little bit about the strategy and the growth outlook. With that.

Electricity networks. We're seeing solid underlying growth supported by higher electricity consumption and the inflation update on regulated revenues from wind and solar. We're targeting around $1.9 billion of EBITDA, and we expect to deliver around $100 million in rotation gains in the second half of the year. And so, as a result, putting all of this together,

Miguel Stilwell de Andrade: Obviously, and I have mentioned this before, we will be doing the capital markets day on November 6th this year, and we will be able to provide additional color and visibility on not just 2025, but 2026 and beyond, sort of talking a little bit about the strategy and the growth outlook. With that, I just stop there and pass it over to Rui Teixeira to go through some of the financial numbers in more detail. Thank you.

We're saying that our recurring, but, uh, we now expect it to be in the 4.8 to 4.9 billion Euro range. Net profit, 1.2 to 1.3 billion Euro range in net. Debt remaining. At 16 billion around 16 billion. Assuming 2 billion in asset rotation proceeds and a billion in tax Equity proceeds.

Obviously, and I've mentioned this before, we will be doing the Capital Markets Day on November 6th this year.

and we will be able to provide additional color and and visibility on not just 2025, but 26 and Beyond and sort of talking a little bit about the strategy and and the growth Outlook

Miguel Stilwell d'Andrade: I just stop there and pass it over to Rui to go through some of the financial numbers in more detail. Thank you. Thank you, Miguel, good morning. Let's move now to slide 13 to review the financial performance, which I believe it's a very strong one in the first half of this year. If you look at EBITDA, it reached EUR 2.6 billion in the first half of the year. That's a 7% increase on underlying year-on-year, so excluding the asset rotation capital gains from last year. If we exclude also the FX impact, actually it went up by 9%. If you now look at the recurring figures. Removals, clients, and energy management decreased EUR 41 million year-on-year. This includes a EUR 30 million decrease in hydro clients and energy management.

Miguel Stilwell de Andrade: I just stop there and pass it over to Rui to go through some of the financial numbers in more detail. Thank you.

Rui Teixeira: Thank you, Miguel, good morning. Let's move now to slide 13 to review the financial performance, which I believe it's a very strong one in the first half of this year. If you look at EBITDA, it reached EUR 2.6 billion in the first half of the year. That's a 7% increase on underlying year-on-year, so excluding the asset rotation capital gains from last year. If we exclude also the FX impact, actually it went up by 9%. If you now look at the recurring figures. Removals, clients, and energy management decreased EUR 41 million year-on-year. This includes a EUR 30 million decrease in hydro clients and energy management.

And with that, I will just stop there and pass it over to Toy to go through some of the financial numbers in more detail. Thank you.

Miguel Andrade: Thank you, Miguel, and good morning. Let's move now to slide 13 to review the financial performance, which is a very strong one in the first half of this year. If you look at EBITDA, it reached €2.6 billion in the first half of the year. That is a 7% increase on underlying year on year, so excluding the asset rotation capital gains from last year. If we exclude also the FX impact, it actually went up by 9%. If you now look at the recurring figures, renewables, clients, and energy management decreased €41 million year on year. This includes a €30 million decrease in hydro, clients, and energy management, with the year-on-year comparison impacted by low gas sourcing costs in the first half of 2024. This was in Iberia, but also an FX impact in Brazil and the stable performance from EDPR.

And good morning. So let's move now to slide 13 to review the financial performance, which I believe is very strong in the first half of this year.

Miguel Stilwell d'Andrade: With the year-over-year comparison impacted by low gas sourcing costs in H1 2024. This was in Iberia, also an FX impact in Brazil. The stable performance from EDPR. However, when excluding the asset rotation capital gains, EDPR's EPTA increased EUR 159 million. This shows the strong underlying performance. On the network side, EBITDA declined by EUR 72 million again. Due to the absence of asset rotation this half or these first 6 months, which reached EUR 71 million in H1 2024. Excluding those, the segments stood flat year-over-year, supported by the strong electricity demand across all the geographies, but obviously impacted by the effects of the Brazilian real. Now. Sorry. Moving to slide 14, to our hydro clients and energy management segment. EBITDA for H1 stood at EUR 858 million.

Rui Teixeira: With the year-over-year comparison impacted by low gas sourcing costs in H1 2024. This was in Iberia, also an FX impact in Brazil. The stable performance from EDPR. However, when excluding the asset rotation capital gains, EDPR's EPTA increased EUR 159 million. This shows the strong underlying performance. On the network side, EBITDA declined by EUR 72 million again. Due to the absence of asset rotation this half or these first 6 months, which reached EUR 71 million in H1 2024. Excluding those, the segments stood flat year-over-year, supported by the strong electricity demand across all the geographies, but obviously impacted by the effects of the Brazilian real. Now. Sorry. Moving to slide 14, to our hydro clients and energy management segment. EBITDA for H1 stood at EUR 858 million.

If you look at EDP, it reached $2.6 billion in the first half of the year, that's a 7% increase on underlying year-on-year, so excluding the asset rotation capital gains from last year. If we exclude also the FX impact, actually it went up by 9%. So, if you now look at the recurring figures, removals, clients, and energy management decreased $41 million year-on-year. This includes a $30 million decrease in Hydro clients and energy management, with the year-on-year comparison impacted by low gas sourcing costs. In the first half of 2024, this was in Iberia but also an FX impact in Brazil.

Miguel Andrade: However, when excluding the asset rotation capital gains, EDPR's EBITDA increased €159 million, and this shows the strong underlying performance. On the network side, EBITDA declined by €72 million, again, due to the absence of asset rotation this half or these first six months, which reached €71 million in the first half of 2024. Excluding those, the segments stood flat year on year, supported by the strong electricity demand across all the geographies, but obviously impacted by the effects of the Brazilian real. Now, moving to slide 14 to our hydro, clients, and energy management segment. EBITDA for the first half stood at €858 million. This represents a 3% decrease versus last year, and this is a reflection of a mixed set of dynamics. In Iberia, the first half last year was impacted by extraordinary impacts on gas sourcing costs.

and the stable performance, uh, from edpr

however, when excluding the asset rotation capital gains,

EDPR is AA, with an increase of $159 million, which shows the strong underlying performance. On the network side, EBITDA declined by $72 million, again due to the absence of asset rotation. This is for the first 6 months.

um, which reached 71 million in the first half of 2024,

Um, so excluding those, the segments stood flat year on year, supported by the strong electricity demand across all the geographies, but obviously impacted by the effects of the Brazilian real.

Miguel Stilwell d'Andrade: This represents a 3% decrease versus last year. This is a you know reflection of a mixed set of dynamics. In Iberia, first half last year was impacted by extraordinary impacts on gas sourcing costs. Hydro generation volumes were down at 7.3 TWh versus 7.8 TWh in the first half of 2024. That's a 6% decline. However. Hydro and contracted volumes were sold at higher prices. With a 58% increase in electricity spot price, which rose from EUR 39 per megawatt hour to EUR 62 per megawatt hour. Pumping generation increased by 13%. CCGT generation tripled from 0.6 to 3 TWh. Reflecting the system operator requests, and this was mainly after the blackouts. However, it's important to note that CCGTs have lower margin as compared to hydro, and therefore it has an impact on the gross profit. I would also highlight.

Rui Teixeira: This represents a 3% decrease versus last year. This is a you know reflection of a mixed set of dynamics. In Iberia, first half last year was impacted by extraordinary impacts on gas sourcing costs. Hydro generation volumes were down at 7.3 TWh versus 7.8 TWh in the first half of 2024. That's a 6% decline. However. Hydro and contracted volumes were sold at higher prices. With a 58% increase in electricity spot price, which rose from EUR 39 per megawatt hour to EUR 62 per megawatt hour. Pumping generation increased by 13%. CCGT generation tripled from 0.6 to 3 TWh. Reflecting the system operator requests, and this was mainly after the blackouts. However, it's important to note that CCGTs have lower margin as compared to hydro, and therefore it has an impact on the gross profit. I would also highlight.

Miguel Andrade: Hydrogeneration volumes were down at 7.3 terawatt hours versus 7.8 terawatt hours in the first half of 2024. That is a 6% decline. However, hydro and contracted volumes were sold at higher prices, with a 58% increase in electricity spot price, which rose from €39 per megawatt hour to €62 per megawatt hour. Pumping generation increased by 13%, and CCGT generation tripled from 0.6 to 3 terawatt hours, reflecting the system operator requests. This was mainly after the blackouts. However, it is important to note that CCGTs have lower margin as compared to hydro, and therefore, it has an impact on the gross profit. I would also highlight that in the first half of 2025, we had an increase in ancillary services revenues from the generation side, but also some costs on the supply side, which we expect to persist in the second half of the year.

So now sorry, moving to slide 14 to our Hydro clients and energy management segment epita for the first half to the 858 million euros. This represents a 3%, decrease versus last year. And this is a, you know, reflection of a mixed set of Dynamics. So, in Iberia first, half last year, was impacted by extraordinary, impacts on gas sourcing costs. Hydrogen generation volumes were down at 7.3 terawatt hours versus 7.8 terawatt hours in the first half of 24. That's a 6% decline. However hydro and contracted volumes were sold at higher prices with a 58% increase in electricity spot price which rose from 39 years from Mega our to 62 years per Mega our

pumping generation increased by 13% and ccgt generation tripled from 0.6 to 3, terawatt hours reflecting the system operator requests. And this was mainly after the uh the blackouts.

However, it's important to note that ccts have lower margins compared to hydro, and therefore, it has an impact on the cross profit.

Miguel Stilwell d'Andrade: In the first half of 2025, we had an increase in ancillary services revenues. From the generation side, also some costs on the supply side, which we expect to persist in the second half of the year. On a net basis, the impact from ancillary services was obviously positive. In Brazil, EBITDA declined slightly from EUR 97 million to EUR 75 million, that is mainly due to FX impact. Brazilian real devaluation impact. Overall, despite the slight decline in headline figures, the segment continues very solid. If we now move to slide 15. Turning to electricity network segment, recurring EBITDA reached EUR 765 million in the first half of the year. It represents a 9% decrease year-on-year, the decline is primarily explained by the absence of asset rotation gains that amounted to EUR 71 million in the first half of 2024.

Rui Teixeira: In the first half of 2025, we had an increase in ancillary services revenues. From the generation side, also some costs on the supply side, which we expect to persist in the second half of the year. On a net basis, the impact from ancillary services was obviously positive. In Brazil, EBITDA declined slightly from EUR 97 million to EUR 75 million, that is mainly due to FX impact. Brazilian real devaluation impact. Overall, despite the slight decline in headline figures, the segment continues very solid. If we now move to slide 15. Turning to electricity network segment, recurring EBITDA reached EUR 765 million in the first half of the year. It represents a 9% decrease year-on-year, the decline is primarily explained by the absence of asset rotation gains that amounted to EUR 71 million in the first half of 2024.

Miguel Andrade: On a net basis, the impact from ancillary services was obviously positive. In Brazil, EBITDA declined slightly from 97 million euros to 75 million euros, but that is mainly due to FX impact, so Brazilian real devaluation impact. Overall, despite the slight decline in headline figures, the segment continues very solid. If we now move to slide 15 and turn into the electricity network segment, recurring EBITDA reached 765 million euros in the first half of the year. It represents a 9% decrease year on year, but the decline is primarily explained by the absence of asset rotation gains that amounted to 71 million euros in the first half of 2024. Excluding these gains, the underlying performance was solid, obviously impacted by Brazilian real effects, and therefore, EBITDA remaining flat.

I would also highlight. I like um, that in the first half of 25, we had an increase in ancillary Services revenues from the generation side. But also some costs on the supply side, which we expect to persist in the second half of the year.

On a net basis, the impact from Services was obviously positive.

In Brazil epita declined slightly from 97 million euros to 75 million euros. But that is mainly due to effects impact.

So, the Brazilian real evaluation impact overall. Despite the slight decline in headline figures, the segment continues very solid.

If we now move to slide 15.

Miguel Stilwell d'Andrade: Excluding these gains, the underlying performance was solid. Obviously impacted by Brazilian real effects, therefore EBITDA remaining flat. You see a EUR 23 million increase of EBITDA in Iberia. Following the inflation update in Portugal and rapid growth in Iberia overall. A EUR 24 million decrease in EBITDA in Brazilian operations, excluding gains. If we exclude the FX impact, actually Brazil would increase 7%. Following you know what is the performance of the distribution as well as the transmission businesses there. All in all. EBITDA for electricity networks, including asset rotation gains and FX impact, increased 6%, showing a strong operational performance. On slide 16, wind and solar underlying EBITDA grew 20% year-on-year or 21% if we exclude FX. This reflects naturally the strong performance that we highlighted yesterday on EDPR's call. That's a 12% increase in electricity generation.

Rui Teixeira: Excluding these gains, the underlying performance was solid. Obviously impacted by Brazilian real effects, therefore EBITDA remaining flat. You see a EUR 23 million increase of EBITDA in Iberia. Following the inflation update in Portugal and rapid growth in Iberia overall. A EUR 24 million decrease in EBITDA in Brazilian operations, excluding gains. If we exclude the FX impact, actually Brazil would increase 7%. Following you know what is the performance of the distribution as well as the transmission businesses there. All in all. EBITDA for electricity networks, including asset rotation gains and FX impact, increased 6%, showing a strong operational performance. On slide 16, wind and solar underlying EBITDA grew 20% year-on-year or 21% if we exclude FX. This reflects naturally the strong performance that we highlighted yesterday on EDPR's call. That's a 12% increase in electricity generation.

Um, turning to the electricity network segment regarding EPA, which generated €765 million in the first half of the year, this represents a 9% decrease year on year. However, the decline is primarily explained by the absence of asset rotation gains that amounted to €71 million in the first half of 2024.

Excluding these gains the underlying performance was solid.

Miguel Andrade: You see a 23 million increase of EBITDA in Iberia following the inflation uptake in Portugal and RAB growth in Iberia overall, and then a 24 million decrease in EBITDA in Brazilian operations, excluding gains. If we exclude the FX impact, actually, Brazil would increase 7% following what is the performance of the distribution as well as the transmission businesses there. All in all, EBITDA for electricity networks, including asset rotation gains and Forex impact, increased 6%, showing a strong operational performance. On slide 16, wind and solar, underlying EBITDA grew 20% year on year or 21% if we exclude FX, and this reflects naturally the strong performance that we highlighted yesterday on EDP Renewables' call.

Obviously impacted by Brazilian real effects um, and therefore epita remaining flat. So you see a 23 million increase of Abita in, Liberia following inflation, update in Portugal, and wrap growth in Iberia overall, and then at 24 million decrease in Evita in Brazilian operations, excluding gains.

Um, if we exclude the FX impact, actually Brazil would increase 7% following. Um, you know, what is the performance of the distribution, as well as the transmission businesses there. So, all in all, EBITDA for electricity networks, including asset rotation gains and Forex impact, increased 6%, showing a strong operational performance.

On slide 16 within solar underlying epita grew 20% year on year or 21%. If we exclude FX

Miguel Andrade: That's a 12% increase in electricity generation driven by the ramp-up of new capacity added in 2024, impacted also by a slight decline in wind resources compared to the first half of last year, with lower wind resources in Europe offsetting better resources in North America. Also, lower average selling price decreased by 9% year on year to around 55 euros per megawatt hour, and this is mainly due to lower realized prices in Europe and Brazil. Now moving to slide 17, financial costs. Recurring terms increased 6% year on year, resulting from higher average debt versus the first half of 2024, and cost of debt increasing from 4.6% to 4.8%, reflecting higher Brazilian real denominated cost of debt. If we exclude the Brazilian real cost of debt, the rest, which is mainly or primarily euros and U.S. dollar, stayed stable at 3.3%.

Miguel Stilwell d'Andrade: Driven by the ramp up of new capacity added in 2024. Impacted also by a slight decline in wind resources compared to the First Half 2024, with lower wind resources in Europe, offsetting better resources in North America. Also lower average selling price decreased by 9% year-over-year to around EUR 55 per MWh, and this is mainly due to lower realized prices in Europe and Brazil. Now moving to slide 17, financial costs. Recurring terms increased 6% year-over-year. Resulting from higher average debt versus the First Half 2024. Cost of debt increasing from 4.6% to 4.8%. Reflecting higher Brazilian real denominated cost of debt. If we exclude the Brazilian real cost of debt. The rest, which is mainly or primarily euros and US dollar, stayed stable at 3.3%.

Rui Teixeira: Driven by the ramp up of new capacity added in 2024. Impacted also by a slight decline in wind resources compared to the First Half 2024, with lower wind resources in Europe, offsetting better resources in North America. Also lower average selling price decreased by 9% year-over-year to around EUR 55 per MWh, and this is mainly due to lower realized prices in Europe and Brazil. Now moving to slide 17, financial costs. Recurring terms increased 6% year-over-year. Resulting from higher average debt versus the First Half 2024. Cost of debt increasing from 4.6% to 4.8%. Reflecting higher Brazilian real denominated cost of debt. If we exclude the Brazilian real cost of debt. The rest, which is mainly or primarily euros and US dollar, stayed stable at 3.3%.

Lowering resources in Europe, offsetting better resources in North America.

Also, the lower average selling price decreased by 9% year-on-year, to around $55 per megawatt-hour, from a good hour. This is mainly due to lower realized prices in Europe and Brazil.

So now, moving to slide 17, Financial costs by recurring terms increased by 6% year on year, resulting from higher average debt in the first half of 2024 and the cost of debt increasing from 4.6% to 4.8%, reflecting higher Brazilian reality eliminated cost of debt.

If we exclude, the Brazilian real cost of debt.

Miguel Andrade: Obviously, here, this first half, we had lower capitalizations that have an impact in terms of the financial costs reflected into the P&L. On the right-hand side of the slide, average nominal debt by currency shows a decrease of U.S. dollar denominated debt in line with our strategy to reduce the exposure on the balance sheet to this currency. Finally, highlighting that in May this year, we issued 750 million euros of green bonds with a 4.5% coupon and maturity in 2055. We continue to actively manage our debt and liquidity needs. Net debt on slide 18 stood at 17.2 billion euros from the 15.6 billion year-end 2024. This increase is the consequence of executing the investment plan, the annual payment of dividends, with proceeds from asset rotation and tax equity expected to be mostly concentrated in the second half of this year.

Miguel Stilwell d'Andrade: Obviously here, this is the first half we had lower capitalizations that have an impact in terms of the financial costs. Reflected into the P&L. On the right hand side of the slide, average nominal debt by currency shows a decrease of US dollar denominated debt in line with our strategy to reduce the exposure on the balance sheet to this currency. Finally highlighting that in May this year we issued EUR 750 million of green bonds with a 4.5% coupon. Maturity in 2055. We continue to actively manage our debt and liquidity needs. Net debt on slide 18 stood at EUR 17.2 billion. Up from the EUR 15.6 billion year-end 2024. This increase is the consequence of you know executing the investment plan, the annual payment of dividends.

Rui Teixeira: Obviously here, this is the first half we had lower capitalizations that have an impact in terms of the financial costs. Reflected into the P&L. On the right hand side of the slide, average nominal debt by currency shows a decrease of US dollar denominated debt in line with our strategy to reduce the exposure on the balance sheet to this currency. Finally highlighting that in May this year we issued EUR 750 million of green bonds with a 4.5% coupon. Maturity in 2055. We continue to actively manage our debt and liquidity needs. Net debt on slide 18 stood at EUR 17.2 billion. Up from the EUR 15.6 billion year-end 2024. This increase is the consequence of you know executing the investment plan, the annual payment of dividends.

The the rest which is mainly or primarily the euros and US dollar State St. Stable at 3.3%,

Obviously here this is the first half. We had lower capitalizations that have an impact in terms of the, uh, the financial costs.

The fact that, in the P&L on the right-hand side of the slide, average nominal depth by currency shows a decrease of US dollar-denominated debt, in line with our strategy to reduce the exposure on the balance sheet to this currency. Finally, I would like to highlight that, in May this year, we issued €750 million of green bonds, with a 4.5% coupon and a maturity in 2055. So, we continue to actively manage our debt and liquidity needs.

On slide 18, stood at 17.2 billion, euros up from the 15.6 billion year, end 2024.

Miguel Stilwell d'Andrade: With proceeds from asset rotation and tax equity expected to be mostly concentrated in the second half of this year. The key drivers on the change in net debt include. As I said, EUR 1.5 billion organic cash flow. Reflecting better working capital performance with organic cash flow increasing EUR 0.4 billion year-over-year. From around EUR 1 billion in the First Half last year. EUR 0.8 billion of a dividend annual payment executed in May. EUR 1.9 billion of net cash investment, including EUR 2.1 billion of cash CapEx. That includes EUR 0.4 billion related to working capital, the changes with PP&E suppliers. This is offset by around EUR 0.2 billion of asset rotation proceeds and EUR 0.1 billion of tax equity proceeds on this half of the First Half of the year. Also EUR 0.6 billion of regulatory receivables and about EUR 0.1 from FX and other.

Rui Teixeira: With proceeds from asset rotation and tax equity expected to be mostly concentrated in the second half of this year. The key drivers on the change in net debt include. As I said, EUR 1.5 billion organic cash flow. Reflecting better working capital performance with organic cash flow increasing EUR 0.4 billion year-over-year. From around EUR 1 billion in the First Half last year. EUR 0.8 billion of a dividend annual payment executed in May. EUR 1.9 billion of net cash investment, including EUR 2.1 billion of cash CapEx. That includes EUR 0.4 billion related to working capital, the changes with PP&E suppliers. This is offset by around EUR 0.2 billion of asset rotation proceeds and EUR 0.1 billion of tax equity proceeds on this half of the First Half of the year. Also EUR 0.6 billion of regulatory receivables and about EUR 0.1 from FX and other.

Miguel Andrade: The key drivers on the change in net debt include, as I said, 1.5 billion organic cash flow, reflecting better working capital performance, with organic cash flow increasing 0.4 billion euros year on year from around 1 billion in the first half last year, 0.8 billion of a dividend annual payment executed in May, 1.9 billion of net cash investment, including 2.1 billion of cash CapEx that includes 0.4 billion related to working capital, the changes with PB&E suppliers. This is offset by around 0.2 billion of asset rotation proceeds and 0.1 billion of tax equity proceeds on this half of the first half of the year. Also, 0.6 billion of regulatory receivables and about 0.1 from FX and others. This is mostly from U.S. dollar denominated debt. Despite the higher debt, the leverage ratios remain solid.

This increase is the the consequence of you know, executing the investment plan. Um the annual payment of dividends, we proceed, from asset rotation, and tax Equity expected to be mostly concentrated in the second half of this year.

So the key drivers um on the change in net, debt include because I said 1.5 billion organic cash flow.

Uh reflecting better working Capital Performance with Organic cash flow increasing 0.4 billion, year billion euros uh year on Year from 1 uh around 1 billion in the first half last year.

0.8 billion of a dividend annual payment executed in May 1.92%. Um, and this is offset by around 0.2 billion of asset rotation proceeds, and 0.1 billion of tax. Every proceeds on this half of the first half of the year,

Miguel Stilwell d'Andrade: This is mostly from US dollar denominated debt. Despite the higher debt, the leverage ratios remain solid. Net debt to EBITDA stood at 3.8x and FFO to net debt at 19.5%. Really strong metrics. Obviously this is the reflection of a very disciplined financial management and the expectation also of strong cash inflows during the second half of the year as we close asset rotations, as we close the tax equity proceeds, and this will support further deleveraging to achieve our EUR 16 billion target by the year-end. Now on net profit, slide 19, recurring net profit. At EUR 752 million. That's a 3% decline versus last year. This is mostly reflecting the lower EBITDA, the EUR 72 million year-over-year, as I said, because of the asset rotation gains.

Rui Teixeira: This is mostly from US dollar denominated debt. Despite the higher debt, the leverage ratios remain solid. Net debt to EBITDA stood at 3.8x and FFO to net debt at 19.5%. Really strong metrics. Obviously this is the reflection of a very disciplined financial management and the expectation also of strong cash inflows during the second half of the year as we close asset rotations, as we close the tax equity proceeds, and this will support further deleveraging to achieve our EUR 16 billion target by the year-end. Now on net profit, slide 19, recurring net profit. At EUR 752 million. That's a 3% decline versus last year. This is mostly reflecting the lower EBITDA, the EUR 72 million year-over-year, as I said, because of the asset rotation gains.

Also 0.6 uh billion of regulatory receivables and about 0.1 from FX and other. This is mostly from US dollar denominated debt

Miguel Andrade: Net debt to EBITDA stood at 3.8 times and FFO to net debt at 19.5%. Really strong metrics. Obviously, this is the reflection of a very disciplined financial management and the expectation also of strong cash inflows during the second half of the year as we close asset rotations, as we close the tax equity proceeds. This will support further deleveraging to achieve our 16 billion euros target by the year-end. On net profit, slide 19, recurring net profit at 752 million euros. That's around a 3% decline versus last year. This is mostly reflecting the lower EBITDA, the 72 million euros year on year. As I said, because of the asset rotation gains, if it was not for that, actually would be increasing. The higher depreciations and amortizations and provisions increasing $64 million year on year as a result of the investment plan.

So, despite the higher depth, The Leverage ratios remain solid. Net depth to aita stood at 3.8 times and ffo to net debt at 19.5%. So really strong metrics.

Miguel Stilwell d'Andrade: If it was not for that, actually, it would be increasing. The higher depreciations, amortizations, and provisions increasing EUR 64 million year-over-year as a result of the investment plan. Increased net financial costs due to the higher average cost of debt and lower capitalizations. Again, debt cost of debt driven primarily by the Brazilian real denominated part on the balance sheet. Lower income taxes and lower non-controlling interest. Excluding capital gains, the underlying net profit shows a strong 27% increase versus the First Half 2024. Definitely you know a good performance in this quarter and coming across all the business lines. Reported terms, net profits reached EUR 709 million, including the negative impact of EUR 43 million, which is most related to US Ocean Winds. With this, I would hand over to you, Miguel, for closing remarks. Thank you all.

Rui Teixeira: If it was not for that, actually, it would be increasing. The higher depreciations, amortizations, and provisions increasing EUR 64 million year-over-year as a result of the investment plan. Increased net financial costs due to the higher average cost of debt and lower capitalizations. Again, debt cost of debt driven primarily by the Brazilian real denominated part on the balance sheet. Lower income taxes and lower non-controlling interest. Excluding capital gains, the underlying net profit shows a strong 27% increase versus the First Half 2024. Definitely you know a good performance in this quarter and coming across all the business lines. Reported terms, net profits reached EUR 709 million, including the negative impact of EUR 43 million, which is most related to US Ocean Winds. With this, I would hand over to you, Miguel, for closing remarks. Thank you all.

Obviously this is this is the reflection of a very disciplined financial management and expectation. Um, also of strong cash inflows during the second half of the year as we close asset rotations, as we close the tax Equity proceeds. And this will support further deleveraging to achieve our 16 billion euros Target by the year end. Now on net profit, slide 19, recurring that profit at 752 million Euros. So that's a 3% around, 3%, decline versus last year and this is mostly reflecting the lower Abita the 72 million euros year on year, as I said because of the asset rotation gains if it was not for from for that actually would be increasing.

Miguel Andrade: Increased net financial costs due to the higher average cost of debt and lower capitalizations. Again, the cost of debt driven primarily by the Brazilian real denominated part on the balance sheet. Lower income taxes and lower non-controlling interests. So excluding capital gains, the underlying net profit shows a strong 27% increase versus the first half of 2024. So definitely a good performance in this quarter and coming across all the business lines. Reported terms, net profits reached 709 million euros, including the negative impact of 43 million, which is most related to U.S. ocean winds. With this, I would hand over to you, Miguel, for closing remarks. Thank you all.

Um, the higher the depreciations, the amortizations, and provisions are, increasing by €64 million year on year as a result of the investment plan.

Increased net Financial costs due to the higher average cost of debt and lower capitalization again, that cost of that driven, primarily by the Brazilian Real denominated uh part of the balance sheet.

Lower income taxes and lower non-controlling interests. So excluding capital gains the underlying net profit shows a strong 27% increase versus the first half of 24. So definitely, um, you know, a good performance in this quarter um in the coming across all the business lines uh reported terms net, profits breached 79 million euros including the negative impact of 43 million which is most related to um us social wins with this. I would hand over to you Miguel for closing remarks. Thank you all.

Miguel Stilwell d'Andrade: Okay, thank you, Rui. Just a couple of quick comments before we wrap up and pass to Q&A. Reiterate strong first half results. Underlying EBITDA up 7% year-over-year, underlying net profit up 27% year-over-year, and organic cash flow up EUR 0.4 billion year-over-year. Clearly strong improvement on operational performance driven by solid wind and solar delivery. Good electricity networks results and a solid integrated business in Iberia. Quite frankly, I think we're very pleased with the first half results. Improved outlook for integrated business in Iberia, reservoir levels at historical highs, 83% in July. A high weight of locked in margins and also growing demand for flexibility and ancillary services seen as a structural change in the market. Again, positive outlook for integrated business. Electricity networks, some key regulatory milestones coming up in 2025.

Miguel Stilwell de Andrade: Okay, thank you, Rui. Just a couple of quick comments before we wrap up and pass to Q&A. Reiterate strong first half results. Underlying EBITDA up 7% year-over-year, underlying net profit up 27% year-over-year, and organic cash flow up EUR 0.4 billion year-over-year. Clearly strong improvement on operational performance driven by solid wind and solar delivery. Good electricity networks results and a solid integrated business in Iberia. Quite frankly, I think we're very pleased with the first half results. Improved outlook for integrated business in Iberia, reservoir levels at historical highs, 83% in July. A high weight of locked in margins and also growing demand for flexibility and ancillary services seen as a structural change in the market. Again, positive outlook for integrated business. Electricity networks, some key regulatory milestones coming up in 2025.

Miguel Stilwell de Andrade: Okay. Thank you, Rui. Just a couple of quick comments before we wrap up and pass to Q&A. To reiterate, strong first half results. Underlying EBITDA up 7% year on year. Underlying net profit up 27% year on year. Organic cash flow up €0.4 billion year on year. Clearly, strong improvement on operational performance driven by solid wind and solar delivery, good electricity networks results, and a solid integrated business in Iberia. Quite frankly, I think we are very pleased with the first half results. Improved outlook for integrated business in Iberia. Reservoir levels at historical highs, 83% in July. A high weight of locked-in margins and also growing demand for flexibility and ancillary services seen as a structural change in the market. Again, positive outlook for integrated business. Electricity networks, some key regulatory milestones coming up in 2025.

Okay, thank you for

so, just a couple of quick comments before we wrap up and, and, and pass to, to Q&A,

Up 7% year-on-year, underlying net profit up 27% year on year and organic cash flow up, um, 0.4 billion year on year. So clearly strong Improvement on operational, performance driven by solid wind and solar delivery.

Good electricity networks, uh, results and a solid integrated business in Iberia. So quite frankly, I think we're very pleased with the first half results.

Improved outlook for integrated business and Iberia Reservoir levels at historical highs. 83% in July a highway of locked in margins and also growing demand for flexibility and silvery Services seen as a structural change in the market. So again, positive outlook for integrated business.

Miguel Stilwell d'Andrade: I mean, there's a public consultation underway for new remuneration framework. Also return on investment in Spain. Which is going to be really important for us to take decisions on that in Iberia. Modernization, digitalization remain key. I've talked about that. I've talked about sort of the age of the transformers and sort of the amount of investment that is required. An improvement of returns is required to foster investment. In Brazil, we have this. Concession extensions of 30 years for EDP Espírito Santo signed tariff review in August 2025. Also formal approval. Of 30 year extensions in EDP Espírito Santo in São Paulo. Overall guidance upgraded supported by this first half. Performance. In all segments. The 2025 guidance EBITDA 4.8 to 4.9, as I mentioned, net profit 1.2 to 1.3 and the net debt at around EUR 16 billion.

Miguel Stilwell de Andrade: I mean, there's a public consultation underway for new remuneration framework. Also return on investment in Spain. Which is going to be really important for us to take decisions on that in Iberia. Modernization, digitalization remain key. I've talked about that. I've talked about sort of the age of the transformers and sort of the amount of investment that is required. An improvement of returns is required to foster investment. In Brazil, we have this. Concession extensions of 30 years for EDP Espírito Santo signed tariff review in August 2025. Also formal approval. Of 30 year extensions in EDP Espírito Santo in São Paulo. Overall guidance upgraded supported by this first half. Performance. In all segments. The 2025 guidance EBITDA 4.8 to 4.9, as I mentioned, net profit 1.2 to 1.3 and the net debt at around EUR 16 billion.

Miguel Stilwell de Andrade: There is a public consultation underway for new remuneration framework and also return on investment in Spain, which is going to be really important for us to take decisions on that. In Iberia, modernization and digitalization remain key. I have talked about that. I have talked about the age of the transformers and the amount of investment that is required. An improvement of returns is required to foster investment. In Brazil, we have this concession extension, 30 years for EDP Espírito Santo, signed tariff review in August 2025, and also formal approval of 30-year extensions in EDP Espírito Santo in São Paulo. Overall, guidance upgraded supported by this first half performance in all segments. The 2025 guidance EBITDA €4.8 billion to €4.9 billion, as I mentioned, net profit €1.2 billion to €1.3 billion, and the net debt at around €16 billion.

Electricity networks, some key regulatory Milestones coming up in 2025 and there's a public consultation on the way for new remuneration framework and also return on investments in Spain, which is going to be really important for us to take decisions on that in Iberia.

Modernization digitalization will remain key. I've talked about that, I talked about sort of the agents Transformers and sort of the amount of investment that is required. And so, an improvement of returns is required to Foster in investment.

In Brazil, we have this, um, concession extension. So 30 years for Education, since signs tower for you in August 2025, and also, formal approval of 30 year extensions in, um, in the beach. But in Sabal,

overall, guidance upgraded supported by this first half performance,

Miguel Stilwell d'Andrade: Overall, as I say, good First Half. Well positioned for Second Half. I'll say for meeting the guidance that we have for the year. Finally, I just mentioned it, Capital Markets Day, 6 November, we will be providing a lot more color. Even if we don't get into a lot of detail today on the new Q&A. Obviously, we will take note of all of the questions and requests for information, come back to you 6 November. With that, I'd stop and pass it over to Miguel for Q&A. Thank you, ladies and gentlemen. The Q&A session starts now. As a reminder, if you wish to ask a question, please press star followed by 5 on your telephone keypad. Thank you. The first question comes from the line of Pedro Alves from CaixaBank.

Miguel Stilwell de Andrade: Overall, as I say, good First Half. Well positioned for Second Half. I'll say for meeting the guidance that we have for the year. Finally, I just mentioned it, Capital Markets Day, 6 November, we will be providing a lot more color. Even if we don't get into a lot of detail today on the new Q&A. Obviously, we will take note of all of the questions and requests for information, come back to you 6 November. With that, I'd stop and pass it over to Miguel for Q&A.

Miguel Stilwell de Andrade: Overall, as I say, good first half, well positioned for the second half and for meeting the guidance that we have for the year. Finally, I just mentioned it, but Capital Market Day, November 6th, we will be providing a lot more color. Even if we do not get into a lot of detail today on the new Q&A, obviously, we will take note of all of the questions and requests for information and come back to you on November 6th. With that, I would stop and pass it over to Miguel for Q&A.

In all segments and the 2025 guidance. Ibitta. 4.84 Part 9, as I mentioned, net profit, 1.2 to 1.3 and the net debt at around 16 billion euros. So overall, as I say, good first half, well, positioned for second half and for the, that's it, for meeting the the guidance that we have for the year,

Finally, I just mentioned it but Capital markets Day November 6th. We will be providing a lot more color. So even if we don't get into a lot of detail today on the new Q&A, um, obviously we will take note of of all the questions and and request for information, then come back to you. Uh no problem 6.

Operator: Thank you, ladies and gentlemen. The Q&A session starts now. As a reminder, if you wish to ask a question, please press star followed by 5 on your telephone keypad. Thank you. The first question comes from the line of Pedro Alves from CaixaBank.

With that, I'd stop and pass it over to Miguel for Q&A.

Speaker 4: Thank you, ladies and gentlemen. The Q&A session starts now. As a reminder, if you wish to ask a question, please press star followed by five on your telephone keypad.

Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star. Followed by 5 on your telephone keypad.

Miguel Andrade: Thank you. The first question comes from the line of Pedro Alves from CaixaBank. Pedro, please go ahead.

Miguel Stilwell d'Andrade: Pedro, please go ahead. Hi, good morning. Thank you for the presentation. I have just one question on how should we think about the group strategy and capital allocation ahead of the capital markets day. We continue to see. On one hand, some consolidation rumors out there, send out on the structural direction of the equity story of the group. Can you please tell us if we should expect EDP to present an organic growth plan in November with EBITDA net profit growing organically while keeping your balance sheet under control? I think it's fair to say that you are not probably in your comfort zone in terms of balance sheet.

Pedro Alves: Pedro, please go ahead. Hi, good morning. Thank you for the presentation. I have just one question on how should we think about the group strategy and capital allocation ahead of the capital markets day. We continue to see. On one hand, some consolidation rumors out there, send out on the structural direction of the equity story of the group. Can you please tell us if we should expect EDP to present an organic growth plan in November with EBITDA net profit growing organically while keeping your balance sheet under control? I think it's fair to say that you are not probably in your comfort zone in terms of balance sheet.

Thank you. So the first question comes from the line of Pedro. From Kasher Bank, please go ahead.

Speaker 5: Hi, good morning, and thank you for the presentation. I have just one question on how should we think about the group strategy and capital allocation ahead of the capital markets day. We continue to see, on one hand, some consolidation rumors out there, some doubts on the structural direction of the equity story of the group. Can you please tell us if we should expect EDP to present an organic growth plan in November with EBITDA net profit growing organically while keeping your balance sheet under control? I think it is fair to say that you are not probably in your comfort zone in terms of balance sheet. Can we expect EDP to eventually increasingly shift into the sale of minority stakes, raise the stock of the hybrid bonds, or even consider an equity raise like one of your peers recently did?

Miguel Stilwell d'Andrade: Can we expect EDP to eventually increasingly shift into the sale of minority stakes, raise the stock of the hybrid bonds, or even consider an equity raise like one of your peers recently did? Sorry, I know you may want to elaborate on all of this in the capital markets side, but any early thoughts on that would be helpful. Thank you. Sure. Listen. Let's be very clear. What we are working on is a business plan which allows us to continue to deliver on long-term value creation for the company and both. You know. Organically. 2025, 2026. Beyond. We will be setting out EBITDA, net income. Net sort of the net debt. Estimates and how we see the business developing over the next couple of years. I would.

Pedro Alves: Can we expect EDP to eventually increasingly shift into the sale of minority stakes, raise the stock of the hybrid bonds, or even consider an equity raise like one of your peers recently did? Sorry, I know you may want to elaborate on all of this in the capital markets side, but any early thoughts on that would be helpful. Thank you.

Speaker 5: Sorry, I know you may want to elaborate on all of this in the capital market side, but any early thoughts on that would be helpful. Thank you.

Hi, good morning, and thank you for, for the presentation. Um, I have just 1 question on, how should we think about the group strategy and capital allocation, I have of of the capital market today. So we we continue to see, uh, on 1 hand, some consolidation, rumors out there, send outs on on the structural direction of of the equity story of of the group. So, can can you please tell us if we should expect EDP to present, an organic growth plan in November with a bit, net profit growing organically while keeping your balance sheet under control. Um, I think it's fair to say that you are not probably in your comfort zone in terms of balance sheet. So can we expect GDP to eventually increasingly shift into the sale of minority Stakes raised the stock of the hybrid ones or even consider an equity REITs? Like 1 of your peers recently did, um, sorry I know you you may want to to elaborate on all of these in the capital markets but

Miguel Stilwell de Andrade: Sure. Listen. Let's be very clear. What we are working on is a business plan which allows us to continue to deliver on long-term value creation for the company and both. You know. Organically. 2025, 2026. Beyond. We will be setting out EBITDA, net income. Net sort of the net debt. Estimates and how we see the business developing over the next couple of years. I would.

It's not, uh, any yearly thoughts on on? That would be helpful. Thank you.

Miguel Stilwell de Andrade: Sure. Listen, let's be very clear. What we are working on is a business plan which allows us to continue to deliver on long-term value creation for the company, both organically, 2025, 2026, and beyond. We will be setting out EBITDA, net income, net sort of net debt estimates, and how we see the business developing over the next couple of years. I am not sure I quite understood your point about the comfort zone of the balance sheet. I think we have a solid triple B balance sheet, and that is going to continue to be a key pillar of our strategy going forward. We will continue to manage basically the, let's say, the three pillars: growth, dividends, and balance sheet. We will be constantly adjusting and sort of optimizing for those three pillars.

Perfect. Listen. Um,

Must be very clear what we are working on is a business plan which allows us to continue to deliver on long-term value creation for the company and both.

You know, organically, 2025, 2026, and beyond.

Um we will be setting out, I beta net income, net sort of a net debt estimate and how we see the business developing over the next couple of years.

Miguel Stilwell d'Andrade: I'm not sure I quite understood your point about the comfort zone of the balance sheet. I think we have a solid BBB balance sheet. That's going to continue to be a key pillar of our strategy going forward. We'll continue to manage basically the, I'll say the 3 pillars: growth, dividends, and balance sheet, and we'll be constantly adjusting and sort of optimizing for those 3 pillars. You can, I'd say it's part of our strategy, and I don't think we have any plans of changing that. Keeping the BBB rating, if we continue to have a solid dividend policy. Continue to have sort of a solid and profitable growth plan going forward. I mean, we have no objectives or targets of doing any capital raising. I think we are comfortable.

I would.

Miguel Stilwell de Andrade: I'm not sure I quite understood your point about the comfort zone of the balance sheet. I think we have a solid BBB balance sheet. That's going to continue to be a key pillar of our strategy going forward. We'll continue to manage basically the, I'll say the 3 pillars: growth, dividends, and balance sheet, and we'll be constantly adjusting and sort of optimizing for those 3 pillars. You can, I'd say it's part of our strategy, and I don't think we have any plans of changing that. Keeping the BBB rating, if we continue to have a solid dividend policy. Continue to have sort of a solid and profitable growth plan going forward. I mean, we have no objectives or targets of doing any capital raising. I think we are comfortable.

I didn't not I I'm not sure. I quite understood your point about the comfort zone of the balance sheet. I think we have a solid Triple B balance sheet and that's going to continue to be a key pillar of our strategy going forward. Um and so we'll continue to manage basically the

Miguel Stilwell de Andrade: You can, I would say, it is part of our strategy, and I do not think we have any plans of changing that, keeping the triple B rating if we continue to have a solid dividend policy and continue to have sort of a solid and profitable growth plan going forward. I mean, we have no objectives or targets of doing any capital raising. I think we are comfortable with the current structure and comfortable with the current outlook for the business. We are updating the market in terms of estimates beyond 2026. That was our commitment. I think that is what sort of you can count on: organic growth, profitable, taking advantage of all the opportunities we see out there, keeping a solid balance sheet, and keeping sort of an attractive dividend policy.

Miguel Stilwell d'Andrade: With the current structure and comfortable with the current outlook for the business. I mean, we are updating the market in terms of estimates beyond 2026. That was our commitment. I think that's what sort of you can count on: organic growth, profitable, taking advantage of all the opportunities we see out there, keeping a solid balance sheet, and keeping sort of a attractive dividend policy. Obviously, we'll be giving more color and more detail on that in the capital markets day. Okay, thank you. Thank you, Pedro. The next question comes from the line of Arthur Sitman from Morgan Stanley. Arthur, please go ahead. Hello. Thank you for taking my question. The first question is you flagged in your presentation that electricity distributed in Iberia for EDP is up 3% year-on-year in H1 2025.

Miguel Stilwell de Andrade: With the current structure and comfortable with the current outlook for the business. I mean, we are updating the market in terms of estimates beyond 2026. That was our commitment. I think that's what sort of you can count on: organic growth, profitable, taking advantage of all the opportunities we see out there, keeping a solid balance sheet, and keeping sort of a attractive dividend policy. Obviously, we'll be giving more color and more detail on that in the capital markets day.

Miguel Stilwell de Andrade: Obviously, we will be giving more color and more detail on that in the capital markets day.

Pedro Alves: Okay, thank you.

Um, I mean we have no objectives or or targets of doing any Capital raising, I think we are comfortable with the current structure and comfortable with the current outlook for, for the business. So, um, I mean, we are updating the market in terms of estimates Beyond 2026, that was our commitment, but I think that's what sort of you can count on organic growth profitable, taking advantage of all the opportunities. We see out there, keeping a solid balance sheet, and keeping sort of a, a attractive dividend policy, but obviously we'll be giving you more color and more detail on that, um, in the capital markets there.

Miguel Andrade: Okay. Thank you.

Miguel Viana: Thank you, Pedro. The next question comes from the line of Arthur Sitman from Morgan Stanley. Arthur, please go ahead. Hello.

Okay, thank you.

Speaker 5: Thank you, Pedro. The next question comes from the line of Arthur Sittman from Morgan Stanley. Arthur, please go ahead.

Thank you, Pedro. So the next way to come from the line is our Morgan Stanley representative, Arthur. Please go ahead.

Speaker 6: Hello. Thank you for taking my question. The first question is, you flagged in your presentation that electricity distributed in Iberia for EDP is up 3% year on year in H1 2025. I think it is a bit of a different trend to what we have seen in the first half of the year in North of Europe, where demand seems less dynamic. I was wondering if this 3% increase is largely related to the heat wave that there was in May, June, or if basically you are really starting to see a pickup in electricity demand. If so, what do you attribute it to? Is it data centers? Is it broader electrification? Any granularity that you have in your database on the type of clients driving that or the type of equipment, I guess that would be quite interesting to know.

Arthur Sitbon: Thank you for taking my question. The first question is you flagged in your presentation that electricity distributed in Iberia for EDP is up 3% year-on-year in H1 2025.

Hello. Uh,

Miguel Stilwell d'Andrade: I think it's a bit of a different trend to what we've seen in the first half of the year in North of Europe, where demand is. Seems less dynamic. I was wondering if this 3% increase is largely related to the heat wave that there was in May, June, or if basically you're really starting to see a pickup in electricity demand. If so, what do you attribute it to? Is it data centers? Is it broader electrification? Any granularity that you have in your database on the type of clients driving that or the type of equipment? I guess that would be quite interesting to know. The second question. I was wondering, you flagged very quickly this agreement on data centers with MERLIN.

Arthur Sitbon: I think it's a bit of a different trend to what we've seen in the first half of the year in North of Europe, where demand is. Seems less dynamic. I was wondering if this 3% increase is largely related to the heat wave that there was in May, June, or if basically you're really starting to see a pickup in electricity demand. If so, what do you attribute it to? Is it data centers? Is it broader electrification? Any granularity that you have in your database on the type of clients driving that or the type of equipment? I guess that would be quite interesting to know. The second question. I was wondering, you flagged very quickly this agreement on data centers with MERLIN.

I'm taking my question. Uh, the the first question is uh, you, you flagged in your presentation that electricity distributed in in Iberia, for EDP, is up, 3% year on year, in H1 2025. Um, I think it's a bit of uh a different Trend to what we've seen in the first half of the year and north of Europe. Where demand is seems less uh less Dynamic. I was wondering if this 3% increase is largely related to the to the heat wave that there was in May June or if basically you're really starting to see a pick up in electricity demand uh and if so what do you attribute it to? Is it

Speaker 6: The second question, I was wondering, you flagged very quickly this agreement on data centers with Merlin. I was wondering if you could provide some more detailed financials around this deal, in particular the IR/WACC spread of the agreement, and if there is anything worth mentioning about the deal versus usual solar contracts that you signed. Thank you very much.

Miguel Stilwell d'Andrade: I was wondering if you could provide some more detailed financials around this deal, in particular IRR WACC spread of the agreement and if there is anything worth mentioning about the deal versus usual solar contracts that you sign. Thank you very much. Thank you, Arthur. On the demand growth, I'd say it's just the economies have been doing well. I mean, both Portugal and Spain have had a pretty robust economy over the last couple of months and years. We see electrification. We see new clients being connected. We see, you know, more EVs. I gave that data point. We see data centers. Just it seems to be a broader, more general growth and demand driven by the economy, not any sort of particular.

Arthur Sitbon: I was wondering if you could provide some more detailed financials around this deal, in particular IRR WACC spread of the agreement and if there is anything worth mentioning about the deal versus usual solar contracts that you sign. Thank you very much.

It. Um, is it data center? Is it broader electrification any granularity that you have in your in your database on the type of clients driving that or other type of uh of equipment? I I guess that would be uh, quite interesting to to, to know. Uh, and the the second question I was wondering you, uh, flagged very quickly. This, uh, agreement on data centers with Merlin. Uh, I was wondering if you could provide some uh, more detailed financials around this deed in particular, the work, uh, spread of the

Miguel Stilwell de Andrade: Thank you, Arthur. On the demand growth, I'd say it's just the economies have been doing well. I mean, both Portugal and Spain have had a pretty robust economy over the last couple of months and years. We see electrification. We see new clients being connected. We see, you know, more EVs. I gave that data point. We see data centers. Just it seems to be a broader, more general growth and demand driven by the economy, not any sort of particular.

Of of the agreement. And if there's anything worth mentioning about the the deal versus usual usual um solar contracts that that you sign, thank you very much.

Miguel Stilwell de Andrade: Thank you, Arthur. On the demand growth, I would say it is just the economies have been doing well. Both Portugal and Spain had a pretty robust economy over the last, certainly over the last couple of months and years. We see electrification. We see new clients being connected. We see more EVs. I gave that data point. We see data centers. It just seems to be a broader, more general growth in demand driven by the economy, not any sort of particular, or certainly not sort of you talked about a heat wave. I do not think it is sort of a specific one-off like that. I think it is a more structural growth. Let us see also how it develops. On the second point, this was, this is a project which is still to be developed, but I think it is publicly announced. It is 100.

Okay, thank you. Arthur.

So, on the demand growth,

I'd say it's just the economies have been doing well, I mean both Portugal and Spain have had a pretty robust economy over the last um, 7 of the last couple of months and years but um and so we see portrait and we see new clients being connected. We see you know more EVS I gave that data point, you see data centers. Um so just it seems to be a broader.

Miguel Stilwell d'Andrade: Certainly not sort of you talked about a heat wave. I don't think it's sort of a specific one off. Like that. I think it's a more structural growth, but let's see also how it develops. On the second point. This was, I mean, this is a project which is still to be developed, but I think it's. It's publicly announced. It's a 100. They're developing a data center in Carregada, actually very close to one of our CCGT plants. Just slightly north of Lisbon, it's a 100 MW DG project. We don't disclose specific. Well, clearly the returns are attractive. They're above our targets. We don't disclose specific numbers for projects. They definitely meet our investment criteria. As I say, it's an interesting project because it's a direct DG.

Miguel Stilwell de Andrade: Certainly not sort of you talked about a heat wave. I don't think it's sort of a specific one off. Like that. I think it's a more structural growth, but let's see also how it develops. On the second point. This was, I mean, this is a project which is still to be developed, but I think it's. It's publicly announced. It's a 100. They're developing a data center in Carregada, actually very close to one of our CCGT plants. Just slightly north of Lisbon, it's a 100 MW DG project. We don't disclose specific. Well, clearly the returns are attractive. They're above our targets. We don't disclose specific numbers for projects. They definitely meet our investment criteria. As I say, it's an interesting project because it's a direct DG.

More general growth and demand driven by the economy, not any sort of particular, or certainly not sort of, you talked about the heat wave. I don't think it's sort of a specific one-off like that. So I think it's a more structural growth, but let's see also how it develops.

Um on the second point. So this was um I mean this is a project which is still to be developed but I think it's um,

Miguel Stilwell de Andrade: They are developing a data center in Carregado, actually very close to one of our CCGT plants, just slightly north of Lisbon. It is a 100 megawatt DG project. We do not disclose specific, clearly, the returns are attractive. They are above our targets. We do not disclose specific numbers for projects, but they definitely meet our investment criteria. As I say, it is an interesting project because it is a direct DG, large DG project, which then connects directly into the data center. We do not give out specific numbers on projects.

it's publicly announced its 100 so they're developing a Data Center and very close to 1 of our ccgt plans.

Um, just to Slightly North of Lisbon. And it's, um, it's a 100 megawatt DG project but we don't disclose specific. Well, clearly, the returns are

Attractive. They're above our targets. We don't disclose specific numbers for projects.

Miguel Stilwell d'Andrade: Large DG project, which then connects directly into the data center. Yeah, we don't give out specific numbers on projects. Maybe without giving specific numbers. Is it a contracted profile on the solar plant, or do you commit to deliver a certain profile? No, it's contracted. I mean, it's fully contracted. It's there's a specific PPA with, you know, pace produced, specific price, which guarantees us, you know, an attractive return on that. We're working on that development. As I say, listen, we have many other examples of that. Certainly in the capital markets that we can then take a step back and look at sort of all the different projects that we're signing, whether it's here or in other geographies as well. Thank you very much.

Miguel Stilwell de Andrade: Large DG project, which then connects directly into the data center. Yeah, we don't give out specific numbers on projects.

Arthur Sitbon: Maybe without giving specific numbers. Is it a contracted profile on the solar plant, or do you commit to deliver a certain profile?

But um but they definitely meet our investment criteria and as I say it's it's an interesting project because it's um it's a direct DG large DG project which then connects directly into the the data center. But um but yeah we don't give out the specific numbers on on projects.

Speaker 6: Maybe without giving specific numbers, is it a contracted profile on the solar plant, or do you deliver a certain profile?

Miguel Stilwell de Andrade: No, it's contracted. I mean, it's fully contracted. It's there's a specific PPA with, you know, pace produced, specific price, which guarantees us, you know, an attractive return on that. We're working on that development. As I say, listen, we have many other examples of that. Certainly in the capital markets that we can then take a step back and look at sort of all the different projects that we're signing, whether it's here or in other geographies as well.

Miguel Stilwell de Andrade: It is contracted. I mean, it is fully contracted. So there is a specific PPA with pairs produced, specific price, which guarantees us an attractive return on that. We are working on that development. As I said, we have many, many other examples of that. I think it is certainly in the capital markets that we can then take a step back and look at some of all the different projects that we are signing, whether it is here or in other geographies as well.

Maybe maybe without giving specific numbers. Uh, is it, uh, is it a contracted profile on the solar plant? Or do you do you deliver a certain profile?

No, it's it's it's contracted. I mean it's fully contracted. So it's there's um, a specific uh, DPA with um, you know, pays produced

Specific price, which guarantees us, um, you know, an attractive return on that.

Um, so we're working on that development.

Arthur Sitbon: Thank you very much.

But as I said, listen, we have many, many other examples of that. I think it's, we certainly in the capital markets that we can then take a step back and look at some of all the different projects that were signed with whether it's here or or another geographies as well.

Speaker 6: Thank you very much.

Thank you very much.

Miguel Stilwell d'Andrade: Thank you, Arthur Sitman. The next question comes from the line of Josh Himran from GB Capital. Josh, please go ahead. Good morning. Thank you for the presentation, three questions, if I may. The first is a follow-up on your mention to the ancillary services impact. Rui Teixeira mentioned that it was positive. I was wondering if you can give us some color on the EUR monetary impact of the blackout, what this translated into Q2 gross margin, and what should we expect until year-end? The second is a bit of your view on the new remuneration proposal in Spain, not so much on the financial remuneration rate, but on the OPEX allowance, which seems to be pretty harsh on the CNMC proposal. The third one.

Miguel Viana: Thank you, Arthur Sitman. The next question comes from the line of Josh Himran from GB Capital. Josh, please go ahead.

Miguel Andrade: Thank you, Arthur. The next question comes from the line of Josh Kimmerens from GB Capital. Josh, please go ahead.

Jorge Guimarães: Good morning. Thank you for the presentation, three questions, if I may. The first is a follow-up on your mention to the ancillary services impact. Rui Teixeira mentioned that it was positive. I was wondering if you can give us some color on the EUR monetary impact of the blackout, what this translated into Q2 gross margin, and what should we expect until year-end? The second is a bit of your view on the new remuneration proposal in Spain, not so much on the financial remuneration rate, but on the OPEX allowance, which seems to be pretty harsh on the CNMC proposal. The third one.

And you are. So the next guy to come from the line of human rights from GB Capital, just please go ahead.

Speaker 5: Good morning. Thank you for the presentation. Two questions, if I may. The first is the follow-up on your mention to the ancillary services impact. Rui Teixeira mentioned that it is positive. I was wondering if you can give us some color on the monetary impact of the blackout, what this translated into Q2 gross margin and what we should expect until year-end. The second is a bit of your view on the new remuneration proposal in Spain, not so much on the financial remuneration rate, but on the OpEx allowance, which seems to be pretty harsh on the CNMC proposal. The third one is related with the recent message that the REN is conveying about SES.

Good morning.

Uh, your mention to the anti Services impact. Uh, we mentioned that it positive and I was wondering if you can give us some color on the on the monetary impact of the blackout.

Uh, what this translated into Q2 uh gross margin and what we expect should we expect until year end?

The second is, uh, a bit of your view on the new uh, remuneration proposal in Spain. Not so much on the financial uh remuneration, right? But on the Opex allowance,

Miguel Stilwell d'Andrade: Related with the recent message that the REN is conveying about SEZ. If you expect that based on the rulings about the SEZ on gas in Portugal, we could see, first, a reduction on the SEZ going forward, and potentially some recovery of past amounts delivered? Thank you very much. Okay. On the ancillary services. I'll ask Rui to touch on that. I'll just talk about the other two points. In the remuneration in Spain. Two points, as you mentioned rightly, I think it's important to look at. The overall parameters and not just focus, obviously, just on the headline number, although that's an important point as well. Clearly, we would like to see a higher headline number. 646 is obviously higher than the current 5.6, but it seems below the sort of European average.

Jorge Guimarães: Related with the recent message that the REN is conveying about SEZ. If you expect that based on the rulings about the SEZ on gas in Portugal, we could see, first, a reduction on the SEZ going forward, and potentially some recovery of past amounts delivered? Thank you very much.

Speaker 5: If you expect that based on the rulings about the SES on gas in Portugal, we could see first a reduction on the SES going forward and potentially some recovery of past amount delivered. Thank you very much.

Uh, which seems to be pretty harsh, uh, on the, on the CMC proposal. And the third 1 is related with um, with the recent with the, the message that is conveying about Civ.

Miguel Stilwell de Andrade: Okay. On the ancillary services. I'll ask Rui to touch on that. I'll just talk about the other two points. In the remuneration in Spain. Two points, as you mentioned rightly, I think it's important to look at. The overall parameters and not just focus, obviously, just on the headline number, although that's an important point as well. Clearly, we would like to see a higher headline number. 646 is obviously higher than the current 5.6, but it seems below the sort of European average.

If you expect that based on the rulings about the the stairs down gas in Portugal, we could see, uh, first, a reduction on the sales going forward and potentially some wreck recovery of past amount delivered. Thank you very much.

Miguel Stilwell de Andrade: On the ancillary services, I will ask Rui to touch on that. I will just talk about the other two points. In the remuneration in Spain, two points, as you mentioned rightly, I think it is important to look at the overall parameters and not just focus, obviously, just on the headline number, although that is an important point as well. Clearly, we would like to see a higher headline number. 646 is obviously higher than the current 5.6, but it seems below the European average. There is a public report on that, which points towards more than seven. So that is on one side. In terms of the allowed OpEx, for us, bear in mind that we have slightly smaller distribution companies in Spain which have their own allowed OpEx sort of parameters.

Um,

Okay, so

on that. So your services um I'll ask who to touch on that. I'll just talk about the the other 2 points. So in the room, iteration in Spain,

2 points as you mentioned rightly I think it's important to look at the overall parameters and not just focus obviously just on the headline number, although that's an important Point as well.

Um, clearly we would like to see a higher.

Headline number.

Miguel Stilwell d'Andrade: There's a public report on that which points towards more than 7. That's on one side in terms of the allowed OPEX. For us, bear in mind that we have slightly smaller distribution companies in Spain, which have their own allowed OPEX sort of parameters. We have a slightly different take or a slightly more positive take on that issue, maybe than some of the others, but I prefer to comment once we have the overall package put together. What I'd say is, we don't think we'd be as much affected as some others about the review and the allowed OPEX parameters. On the SEZ. What I'd say is the following. First, it's I've said this often, but. Clearly. A tax, which doesn't make a lot of sense. It's on assets. Having said that.

Miguel Stilwell de Andrade: There's a public report on that which points towards more than 7. That's on one side in terms of the allowed OPEX. For us, bear in mind that we have slightly smaller distribution companies in Spain, which have their own allowed OPEX sort of parameters. We have a slightly different take or a slightly more positive take on that issue, maybe than some of the others, but I prefer to comment once we have the overall package put together. What I'd say is, we don't think we'd be as much affected as some others about the review and the allowed OPEX parameters. On the SEZ. What I'd say is the following. First, it's I've said this often, but. Clearly. A tax, which doesn't make a lot of sense. It's on assets. Having said that.

646 is obviously higher than the current 5.6 but it it seems below the sort of European average

and there's a public report on that which points towards more than 7. So, um, that's on 1 side in terms of the allowed topics for us, bear in mind that

Miguel Stilwell de Andrade: We have a slightly different take or a slightly more positive take on that issue maybe than some of the others. But I would prefer to comment once we have the overall package put together. What I would say is we do not think we would be as much affected as some others about the review in the allowed OpEx parameters. On the sales, what I would say is the following. First, I have said this often, but clearly a tax which does not make a lot of sense. It is on assets. Having said that, our understanding is that the sales does not apply on future investments, but it is obviously still applicable to the stock. So over time, that would go on decreasing.

We have fairly smaller distribution companies in Spain which have their own allowed Opex sort of parameters.

And so,

um,

we have a slightly different take or slightly more positive, take on that issue, maybe than some of the others. But, um,

But I I prefer to comment once we have the overall package.

put together, but what I'd say is,

Um, we we don't think we'd be as much affected as some others about the the review in the the allowed Opex parameters.

Um, on the sales.

But it says the following: uh, first, I've said this often, but clearly a...

a tax which doesn't make a lot of sense. It's on assets.

Miguel Stilwell d'Andrade: Our understanding is that the SEZ does not apply on future investments. It's obviously still applicable to the stock. Over time that would go on decreasing. We think that. Clearly. This tax is unconstitutional at the moment. Given that it was created in an extraordinary moment. That extraordinary moment has long gone. It was created back in 2014. When Portugal was being intervened by the Troika. I mean, we are in 2025. It makes no sense to continue to have this tax, and I think. I'm not sure exactly what REN said about the message, but. What we would assume is that. It doesn't make sense to have an extraordinary tax when you clearly don't have any extraordinary moment any longer. We would hope to get some conclusion on this and some visibility from the courts on this, you know, soon.

Miguel Stilwell de Andrade: Our understanding is that the SEZ does not apply on future investments. It's obviously still applicable to the stock. Over time that would go on decreasing. We think that. Clearly. This tax is unconstitutional at the moment. Given that it was created in an extraordinary moment. That extraordinary moment has long gone. It was created back in 2014. When Portugal was being intervened by the Troika. I mean, we are in 2025. It makes no sense to continue to have this tax, and I think. I'm not sure exactly what REN said about the message, but. What we would assume is that. It doesn't make sense to have an extraordinary tax when you clearly don't have any extraordinary moment any longer. We would hope to get some conclusion on this and some visibility from the courts on this, you know, soon.

Having said that our understanding is that the sales does not apply on future Investments.

Miguel Stilwell de Andrade: We think that clearly this tax is unconstitutional at the moment, given that it was created in an extraordinary moment, and that extraordinary moment has long gone. It was created back in 2014 when Portugal was being intervened by the Troika. We are in 2025. It makes no sense to continue to have this tax. I think I am not sure exactly what REN said about the message, but what we would assume is that it does not make sense to have an extraordinary tax when you clearly do not have any extraordinary moment any longer. So we would hope to get some conclusion on this and some visibility from the courts on this soon. But obviously, the courts have their time. Maybe on that, I would pass it over to Rui for the first point.

But it's obviously still applicable to the stock. So over time, that would go on decreasing.

uh, we think that

Clearly.

This tax is unconstitutional at the moment.

Given that it was created in an extraordinary moment, and that extraordinary moment has long gone.

It was created back in 2014.

When Portugal has been intervened by the trowa, I mean, we are in 2025, it makes no sense to continue to have this tax and I think I'm not sure exactly what red said about the message. But um, what we would assume is that

Miguel Stilwell d'Andrade: Obviously the courts have their time. Maybe on that I pass it over to Rui for the first point. Yep, thank you, Miguel. Thanks, Josh. Listen, on the ancillary, I mean, the negative impact. Again, just repeat, overall, it's a positive. The negative part of it. It was around EUR 107 million, EUR 108 million in the 1st half. Second half we estimate, you know, slightly below half of that. It's around EUR 50 million, EUR 52 million, maybe. Okay, thank you, Josh. The next question comes from the line of Alberto Gandolfi from Goldman Sachs. Alberto, please go ahead. Good morning. Thank you for taking my questions. I'm going to start the first one on guidance for this year. It looks like you've already achieved 60% of your net income in the 1st half. If you've not booked capital gains yet.

Miguel Stilwell de Andrade: Obviously the courts have their time. Maybe on that I pass it over to Rui for the first point.

Uh, it doesn't make sense to have an extraordinary tax when you clearly don't have any extraordinary moment, um, any longer. So we would hope to get some conclusion on this and some visibility from the courts on this. Uh, you know soon but obviously the the courts have their

Their time.

um,

Rui Teixeira: Yep, thank you, Miguel. Thanks, Josh. Listen, on the ancillary, I mean, the negative impact. Again, just repeat, overall, it's a positive. The negative part of it. It was around EUR 107 million, EUR 108 million in the 1st half. Second half we estimate, you know, slightly below half of that. It's around EUR 50 million, EUR 52 million, maybe.

Miguel Andrade: Thank you, Miguel. Hi, Josh. Listen, on the ancillary, I mean, the negative impact, just to repeat, overall, it's a positive. The negative part of it, it was around 107, 108 million euros in the first half. Second half, we estimate slightly below half of that, so around 50, 52 maybe.

Miguel Viana: Okay, thank you, Josh. The next question comes from the line of Alberto Gandolfi from Goldman Sachs. Alberto, please go ahead.

maybe on that, I pass it over to H for the the first point. Yeah, thank you Miguel. Hi, listen on the insular. Um, I mean, the negative impact. Um, so as a again, just repeat overall, it's a positive, the, the negative part of it, it was around the 107 108 million euros in the first half. Second half we estimate, you know, slightly below, half of that, so around the 50 52. Maybe

Speaker 5: Okay. Thank you, Josh. The next question comes from the line of Alberto Gandolfi from Goldman Sachs. Alberto, please go ahead. Good morning. Thank you for taking my questions. I am going to start the first one on guidance for this year. It looks like you have already achieved 60% of your net income in the first half. You have not booked capital gains yet. I know you do not know how much it is going to rain in the second half. When I also dig a little bit deeper, it seems you have achieved 65% of your Iberia and energy management clients and energy management EBITDA for the year. Again, I know the hydro, but can you maybe tell us what do you think could be slowing down in the second half of the year?

Okay. Thank you Josh. Uh the next question comes from the line of Alberta Gandhi from Goldman Sachs Alberta. Please go ahead.

Alberto Gandolfi: Good morning. Thank you for taking my questions. I'm going to start the first one on guidance for this year. It looks like you've already achieved 60% of your net income in the 1st half. If you've not booked capital gains yet.

Good morning. Thank you for taking my questions. I'm going to start with the first one on guidance for this year.

Miguel Stilwell d'Andrade: I know you don't know how much it's gonna rain in the second half. When I also dig a little bit deeper, it seems you have achieved 65% of your Iberia energy management clients and energy management EBITDA again for the year. Again, I know the hydro. Can you maybe tell us what do you think could be slowing down in the second half of the year? I mean, if you were to continue to do EUR 300 million EBITDA in Iberia clients and energy management for the rest of the year, you would obviously beat the revised guidance already quite comfortably. I was trying to understand if you've been prudent, or if there's any problem that maybe I don't see that you see in the second half. The second question is again, it's a little bit of follow-up from last night.

Alberto Gandolfi: I know you don't know how much it's gonna rain in the second half. When I also dig a little bit deeper, it seems you have achieved 65% of your Iberia energy management clients and energy management EBITDA again for the year. Again, I know the hydro. Can you maybe tell us what do you think could be slowing down in the second half of the year? I mean, if you were to continue to do EUR 300 million EBITDA in Iberia clients and energy management for the rest of the year, you would obviously beat the revised guidance already quite comfortably. I was trying to understand if you've been prudent, or if there's any problem that maybe I don't see that you see in the second half. The second question is again, it's a little bit of follow-up from last night.

Speaker 5: If you were to continue to do 300 million EBITDA in Iberia clients and energy management for the rest of the year, you would obviously beat the revised guidance already quite comfortably. I was trying to understand if you have been prudent or if there is any problem that maybe I do not see that you see in the second half. The second question is, again, it is a little bit of follow-up from last night. Can I ask you, in your priorities, where does a higher EDP Renewables share price stand? Usually, every 10% increase in EDP Renewables is at least a 5% increase in EDP or 4% to 5%. How central is going to be EDP Renewables when you think about your capital allocation going forward and the share price in particular of EDP Renewables?

Um, can you maybe tell us what you think could be slowing down in the second half of the year? I mean, if you were to continue to do $300 million in Abiria, clients, and energy management for the rest of the year, you would always be beat.

Miguel Stilwell d'Andrade: Can I ask you, in your priorities, where does a higher EDPR share price stand? Because usually, you know, every 10% increase in EDPR is at least a 5% increase in EDP or 4% to 5%. How central is gonna be EDPR when you think about, you know, your capital allocation going forward and the share price in particular of EDPR? The last question is. You know, historically this is a bit provocative. Apologies, but I think historically the issue with EDP Capital markets days have been that there was a lot of CapEx, but the EPS growth has disappointed in the past compared to the original expectations. That has also been the case for EDPR. I wanted to ask you. When you talk about organic growth, how can you be comfortable in delivering organic growth going forward?

Alberto Gandolfi: Can I ask you, in your priorities, where does a higher EDPR share price stand? Because usually, you know, every 10% increase in EDPR is at least a 5% increase in EDP or 4% to 5%. How central is gonna be EDPR when you think about, you know, your capital allocation going forward and the share price in particular of EDPR? The last question is. You know, historically this is a bit provocative. Apologies, but I think historically the issue with EDP Capital markets days have been that there was a lot of CapEx, but the EPS growth has disappointed in the past compared to the original expectations. That has also been the case for EDPR. I wanted to ask you. When you talk about organic growth, how can you be comfortable in delivering organic growth going forward?

The revised guidance already quite comfortably. So I was trying to understand if you've been prudent or if there's any problem that maybe I don't see that you see in the second half. Um, the second question is again it's a little bit of follow-up from last night. Um,

can I ask you in your, uh,

Speaker 5: The last question is, historically, this is a bit provocative, so apologies, but I think historically, the issue with EDP capital market days have been that there was a lot of CapEx, but the EPS growth has disappointed in the past compared to the original expectations. That has also been the case for EDP Renewables. So I wanted to ask you, when you talk about organic growth, how can you be comfortable in delivering organic growth going forward? I was looking at the slides, for instance, in Brazil power grid, 8%. I know it is real, but inflation is like 5%, 5.5%. Borrowing costs are extremely high in Brazil. Are not we running the risk now that you pour lots of CapEx in Brazilian power grids, but then there is not much net income growth because it is all eaten away by financial expenditures, essentially?

Priorities. Where does a higher edpr share price stand because usually you know, every 10% increase in edpr is at least a 5% increase in EDP or 4 to 5%. So how Central is going to be edpr? Uh, when you think about uh, you know, your your Capital allocation going forward and and the share price in particular of edpr and the last question is

Miguel Stilwell d'Andrade: You know, I was looking at the slides, for instance, in Brazil power grid. 8%. I know it's real. Inflation is like 5 and a half percent. I mean, borrowing costs are extremely high in Brazil. Aren't we running the risk now that you pour lots of CapEx in Brazilian power grids? There's not much net income growth because it's all eaten away by financial expenditures, essentially. Maybe can you tell us how this time is different on bottom line growth? Thank you. Okay, Alberto, thank you a lot to unpack there. First. On the first point. I mean, we see no problem in the second half. Let's be very clear about that. I think we had a very strong first half. We had very strong hydro.

Alberto Gandolfi: You know, I was looking at the slides, for instance, in Brazil power grid. 8%. I know it's real. Inflation is like 5 and a half percent. I mean, borrowing costs are extremely high in Brazil. Aren't we running the risk now that you pour lots of CapEx in Brazilian power grids? There's not much net income growth because it's all eaten away by financial expenditures, essentially. Maybe can you tell us how this time is different on bottom line growth?

You know, historically this is the big provocative. So I I I apologize. But I think historically the issue with GDP Capital Market days have been that there was a lot of capex, but the EPS growth has disappointed in the past compared to the original expectations. And so, uh, that has also been the case for edpr. So I, I I, I wanted to ask you, when you talk about organic growth, how can you be comfortable in delivering? Organic growth going forward. You know, I was looking at the slides,

For instance, in Brazil power grid.

Speaker 5: Maybe can you tell us how this time is different on bottom line growth? Thank you.

Miguel Stilwell de Andrade: Thank you. Okay, Alberto, thank you a lot to unpack there. First. On the first point. I mean, we see no problem in the second half. Let's be very clear about that. I think we had a very strong first half. We had very strong hydro.

8%. I know it’s real. Uh, and, and, and, but inflation is like 5, 5 and a half percent. I mean, borrowing costs are extremely high in Brazil. So, aren’t we running the risk? Now that you pour lots of capex in Brazilian power grids, but then there’s not much in that income growth because it’s all eaten away by financial expenditures. Essentially, so maybe can, can, can you tell us how this time is different on bottom line growth? Thank you.

Miguel Stilwell de Andrade: Okay. Alberto, thank you. A lot to unpack there. First, on the first point, we see no problem in the second half. I must be very clear about that. I think we had a very strong first half. We had very strong hydro. We had strong ancillary services. What we see is a normalization of hydro. We see a normalization also even in terms of prices, which will be lower than what we had in the first half. I think it is just assuming a more normal second half. You cannot take last year's second half as a reference because we had a strong second half last year, which was above normal. I think that is the key issues that I would mention. Absolutely not any issue, any problem. It is just a normalization of the results.

Hey Alberto, thank you a lot for unpacking that. Um,

First on the first point, I mean, we see no problem in the second half, must be very clear about that. I think we had a very strong first half.

Miguel Stilwell d'Andrade: We had strong ancillary services, and what we see is a normalization of hydro. We see a normalization also even in terms of prices, which will be lower than what we had in the First Half. I think it's just assuming you're more normal Second Half. You can't take last year's Second Half, sort of as a reference, because we had a strong Second Half last year, which was above normal. I think that's the key issues that I'd mentioned. Absolutely not any issue, any problem. It's just a normalization of the results. We do see some additional pressure from gas and higher sourcing costs compared to the previous year in the Second Half. We've already seen part of that in the Q2.

Miguel Stilwell de Andrade: We had strong ancillary services, and what we see is a normalization of hydro. We see a normalization also even in terms of prices, which will be lower than what we had in the First Half. I think it's just assuming you're more normal Second Half. You can't take last year's Second Half, sort of as a reference, because we had a strong Second Half last year, which was above normal. I think that's the key issues that I'd mentioned. Absolutely not any issue, any problem. It's just a normalization of the results. We do see some additional pressure from gas and higher sourcing costs compared to the previous year in the Second Half. We've already seen part of that in the Q2.

And so we had a very strong Hydro, we had a strong and so your services. And what we see is a normalization of hydro, we see a normalization also, and even in terms of prices, um, which will be lower than than what we had in the, the first half. So I think it's just

Assuming you're more normal second half, and you can't take last year's, second half, um, sort of as a reference because we had a strong second half last year, which was above normal.

Miguel Stilwell de Andrade: We do see some additional pressure from gas and higher sourcing costs compared to the previous year in the second half. We have already seen part of that in Q2. We can obviously then unpack that if you want to offline with IR. I would say that that is the key issue. It is not, yes, we have done a significant percentage of the net income and EBITDA already in the first half, but that is because it was a very strong first half. The second question, EDPR share price is extremely important for us, and it is a central priority. Obviously, EDPR is a very material part of our business, of the overall EDP group business. It is absolutely core.

So I think that's the key issues that I mentioned. Absolutely not any issue. Any problem, it's just a normalization of of the results. We do see some additional pressure from gas and higher sourcing costs compared to the previous year.

Miguel Stilwell d'Andrade: We can obviously then unpack that if you want to offline with IR, but. I'd say that that's the key issue. It's not. Yes, we've done a significant percentage of the net income and EBITDA already in the First Half. That's because it was a very strong First Half. The second question. I mean, EDPR share price is extremely important for us, and it is a central priority. Obviously, EDPR is a very material part of our business, of the overall EDP group business. It's absolutely core. Therefore, we are very focused on identifying ways of increasing the EDPR share price, but namely by having a good, solid business plan and taking good investment decisions, managing the balance sheet, and making sure that we can drive that sort of medium-long term earnings growth. EDP Capital Markets Day.

Miguel Stilwell de Andrade: We can obviously then unpack that if you want to offline with IR, but. I'd say that that's the key issue. It's not. Yes, we've done a significant percentage of the net income and EBITDA already in the First Half. That's because it was a very strong First Half. The second question. I mean, EDPR share price is extremely important for us, and it is a central priority. Obviously, EDPR is a very material part of our business, of the overall EDP group business. It's absolutely core. Therefore, we are very focused on identifying ways of increasing the EDPR share price, but namely by having a good, solid business plan and taking good investment decisions, managing the balance sheet, and making sure that we can drive that sort of medium-long term earnings growth. EDP Capital Markets Day.

um, in the second half and we've already seen part of that in the in the second quarter but

We can obviously then unpack that if you want to offline with with ir but but I'd say that that's the, the key issue. It's not. Yes, we've done a significant percentage of the net income and, and EPA already in the first half.

But that's because of the very strong first half.

Miguel Stilwell de Andrade: Therefore, we are very focused on identifying ways of increasing the EDPR share price, namely by having a good, solid business plan and taking good investment decisions, managing the balance sheet, and making sure that we can drive that sort of medium-long-term earnings growth. EDP capital markets day. Listen, let me take a step back. You know us well. You know the company well. For years and years, we had net income at around 800 million, including significant and very material capital gains. We are now talking about guidance for the year 1.2 to 1.3 billion euros, excluding any capital gains. If you do the Kager on that, that is a very material earnings growth.

And the second question, I mean, EDPR's share price is extremely important for us and it is the central priority. Obviously, EDPR is a very material part of our business, of the overall EDP Group business. It's absolutely core, and therefore we are very focused on.

Identifying ways of increasing the DPR, share price, but namely by having a good solid.

Business plan and taking good investment decisions, managing the balance sheet, and making sure that we can drive that sort of...

Medium long-term earnings growth.

Um,

Miguel Stilwell d'Andrade: Listen, let me take a step back. You know us well. You know the company well. For years and years, we had net income at around EUR 800 million, including significant and very material capital gains. We are now talking about guidance for the year of EUR 1.2 to 1.3 billion, excluding any capital gains. If you do the CAGR on that is a very material earnings growth. I would just encourage people to go back and look at the earnings growth that we've had over the last couple of years. Particularly if you strip out whether you include capital gains. If you strip out capital gains, then it's even more impressive. I think that shows that definitely we have been able to translate investments into earnings growth, and that's what we'll.

Miguel Stilwell de Andrade: Listen, let me take a step back. You know us well. You know the company well. For years and years, we had net income at around EUR 800 million, including significant and very material capital gains. We are now talking about guidance for the year of EUR 1.2 to 1.3 billion, excluding any capital gains. If you do the CAGR on that is a very material earnings growth. I would just encourage people to go back and look at the earnings growth that we've had over the last couple of years. Particularly if you strip out whether you include capital gains. If you strip out capital gains, then it's even more impressive. I think that shows that definitely we have been able to translate investments into earnings growth, and that's what we'll.

EDP Capital markets day. Um, listen, let me take a step back.

and you know us well, you know, the company well for years and years, we had

Uh, net income at around 800 million. Including

Significant and very material capital gains.

We are now talking about.

Miguel Stilwell de Andrade: I would just encourage people to go back and look at the earnings growth that we have had over the last couple of years, particularly if you strip out, whether you include capital gains, but if you strip out capital gains, then it is even more impressive. I think that shows that definitely we have been able to translate investments into earnings growth. That is what we will kind of need.

A guidance for the year of 1.2 to 1.3 billion euros, excluding any capital gains, if you do the kegger on that, that is a very material earnings growth.

So I would just encourage people to go back and look at the earnings growth that we've had over the last couple of years.

Miguel Stilwell d'Andrade: I continue to try and do going forward, but I would really encourage you to look at the historical CAGR. Of our earnings. You can look at it, including capital gains, but you can also exclude it, and I think you'll be quite impressed. Thank you. Really good answers. Thank you, Miguel. Thank you, Alberto. The next questions come from the line of Olly Jeffery from Deutsche Bank. Olly, please go ahead. Thanks very much for taking my question. It's just one. In Q1, when talking about the changing, the structural change in the market in Iberia. The potential opportunity that gives you. Regarding 2026, you said at Q1 that you saw EBITDA from hydro clients in the EMI Iberia. Closer to EUR 1 billion versus kind of EUR 0.9 to 1 billion previously.

Miguel Stilwell de Andrade: I continue to try and do going forward, but I would really encourage you to look at the historical CAGR. Of our earnings. You can look at it, including capital gains, but you can also exclude it, and I think you'll be quite impressed. Thank you.

Miguel Viana: to try and do going forward. But I would really encourage you to look at the historical CAGR of our earnings. You can look at it including capital gains, but you can also exclude it, and I think you will be quite impressed. Thank you.

Investments into earnings growth, and that's what we'll like to continue to try and do going forward. But I really encourage you to look at the historical CAGR of our earnings. You can look at it including capital gains, but you can also exclude it, and I think you will be quite impressed.

Miguel Andrade: Really good answer. Thank you, Miguel.

Alberto Gandolfi: Really good answers. Thank you, Miguel.

Thank you.

Miguel Viana: Thank you, Alberto. The next questions come from the line of Olly Jeffery from Deutsche Bank. Olly, please go ahead.

Very good answer. Thank you. Miguel.

Miguel Stilwell de Andrade: Thank you all the actors. The next questions come from the line of Ollie Jeffrey from Deutsche Bank. Ollie, please go ahead.

Olly Jeffery: Thanks very much for taking my question. It's just one. In Q1, when talking about the changing, the structural change in the market in Iberia. The potential opportunity that gives you. Regarding 2026, you said at Q1 that you saw EBITDA from hydro clients in the EMI Iberia. Closer to EUR 1 billion versus kind of EUR 0.9 to 1 billion previously.

Thank you. So the next question is come from the line of all the Jeffrey from Dutch bank, Holly, please go ahead.

Miguel Andrade: Thanks very much for taking my question. It is just one. In Q1, when talking about the changing, the structural change in the market in Iberia and the potential opportunity that gives you, regarding 2026, you said at Q1 that you saw EBITDA from hydro clients in the EMI of Iberia close to €1 billion versus €0.9 billion to €1 billion previously. I just want to check, is that still where you see the level of EBITDA for that business? Have you seen any improvements of that? Obviously, power prices are still pretty similar to what they were back then, with Ford around 63. So any thoughts on your evolution of thinking on that division and the benefit from the structural change and how you see that would be great. Thank you.

Miguel Stilwell d'Andrade: I just want to check, you know, is that still where you see the level of EBITDA for that business? Any improvements to that? Obviously, power prices are still pretty similar to what they were back then before it's around EUR 63. Any thoughts on your evolution of thinking on that division? The benefit from the structural change and how you see that would be great. Thank you. Hi, Olly. It's Rui here. Yeah, the answer is yes. We are, you know, thinking around the sort of EUR 1 billion as the number for what would be the run right cruise speed. Maybe just a couple of data points here. As of now, we have about 70% hedged at EUR 64 per megawatt hour for 2026. Supportive, actually slightly above what we.

Olly Jeffery: I just want to check, you know, is that still where you see the level of EBITDA for that business? Any improvements to that? Obviously, power prices are still pretty similar to what they were back then before it's around EUR 63. Any thoughts on your evolution of thinking on that division? The benefit from the structural change and how you see that would be great. Thank you.

Rui Teixeira: Hi, Olly. It's Rui here. Yeah, the answer is yes. We are, you know, thinking around the sort of EUR 1 billion as the number for what would be the run right cruise speed. Maybe just a couple of data points here. As of now, we have about 70% hedged at EUR 64 per megawatt hour for 2026. Supportive, actually slightly above what we.

Thanks so much for taking my question. Um it's just 1 um in q1. Um when talking about the the changing um the structural change in the market in Iberia and the potential opportunity that gives you um regarding 2026 he said at q1 the Esau ibida from Hydro clients and the Emi Iberia um, place to 1 billion versus kind of 0.9 to 1 billion previously. I just want to check, you know, is that, is that still where you see um, level of ebta for for that business? Be seen, um, um, any improvements to that? I'm mostly power pricing is still pretty similar to what they were about them before at around 63. So any thoughts on your evolution of thinking on that Division and the benefit from the structural change? And how you see? That would be great. Thank you.

Miguel Viana: Hi, Ollie. It's Rui here. The answer is yes. We are thinking around a billion as the number for what would be the run rate to cruise speed. Just a couple of data points here. As of now, we have about 70% hedge at 64 euros per megawatt hour for 2026. This is supportive, actually slightly above what we had when we guided 2026 in terms of power price hedges last year. That's 70% at 64. As we mentioned in the first quarter results, this is the hydro pumping contribution and ancillary services net contribution. We know that if this year we are looking at around 200 to 300 million euros of added EBITDA contribution, maybe above normal, 40% of that should be structural going forward. That's why we are looking at this billion as a good reference for 2026.

Miguel Stilwell d'Andrade: Had when we so last year, when we guided the 2026 in terms of power price to hedges. That's 70% at EUR 64. Also, as we mentioned in the Q1 results. You know, this is the hydro pumping contribution ancillary services net contribution. We know that this, I would say, let's say if this year we are looking at around EUR 200 million, EUR 300 million of added. You know, EBITDA contribution, maybe above normal. I would say 40% of that should be structural going forward. That's why we are looking at this EUR 1 billion as a good reference for 2026. Thanks very much. Thank you, Olly. The next question comes from the line of Skye Landon from Redburn. Skye, please go ahead. Hi, thanks very much. Yeah, I wanted to ask about the hedging in the integrated Iberian division, and specifically the outlook for the hedging.

Rui Teixeira: Had when we so last year, when we guided the 2026 in terms of power price to hedges. That's 70% at EUR 64. Also, as we mentioned in the Q1 results. You know, this is the hydro pumping contribution ancillary services net contribution. We know that this, I would say, let's say if this year we are looking at around EUR 200 million, EUR 300 million of added. You know, EBITDA contribution, maybe above normal. I would say 40% of that should be structural going forward. That's why we are looking at this EUR 1 billion as a good reference for 2026.

Olly Jeffery: Thanks very much.

Hi Ali. It's zory here so so, yeah, the answer is. Yes. So we are, you know, thinking around the sort of a billion as the number for what would be the the Run rate cruise speed, maybe just a couple of data points here. So as of now, we have about 70% hedged at 64 years per megawatt hour for 26. So, supportive actually slightly above what we had when we. So last year, when we guided the 2026 in terms of power price Hedges, so that's 70% at 64. Um, also as we mentioned in the first quarter results, um, you know, this is the Hydro pumping contribution until the area Services, net contribution. Um, we know that this I would say, let's say if if this year we are looking at around 200300 million euros of added um you know Abita contribution uh maybe above normal, I would say 40% of that should be structural going forward. Um so that's why we are looking at this bill billion as a good reference for 26.

Miguel Andrade: Thanks very much.

Miguel Viana: Thank you, Olly. The next question comes from the line of Skye Landon from Redburn. Skye, please go ahead.

Thanks very much.

Miguel Stilwell de Andrade: Thank you, Ollie. The next guest comes from the line of Sky Lennon from Redwine. Sky, please go ahead.

Skye Landon: Hi, thanks very much. Yeah, I wanted to ask about the hedging in the integrated Iberian division, and specifically the outlook for the hedging.

Thank you, Ali. So the next test comes from the line of Sky Landon from Redbarn Sky, please go ahead.

Speaker 4: Thanks very much. I wanted to ask about the hedging and the integrated Iberian division and specifically the outlook for the hedging. With changing power supply dynamics, i.e., far more solar generation during the day, meaning that maybe your hydro generation is increasingly shifting to be more focused on peak demand periods. Can the hedging strategy be adjusted somehow going forward to perhaps better capture higher power prices during these peak periods, or is that not the way we should be thinking about this going forward? Thanks.

Miguel Stilwell d'Andrade: We've kind of like changing power supply dynamics. I far more solar generation during the day, meaning that maybe your hydro generation is increasingly shifting to be more focused on peak demand periods. Can the hedging strategy be maybe adjusted somehow going forward to perhaps better capture higher power prices during these peak periods, or is that not the way we should be thinking about this going forward? Thanks. That's great. What we've done in the past was to already change our hedging strategy so that we're not hedging 100% of our expected volumes, but 80% of our expected volumes. That was on the premise that there's more asymmetrical price movement on the upside than on the downside. That would allow us to then capture sort of increased prices. I think what you've seen.

Skye Landon: We've kind of like changing power supply dynamics. I far more solar generation during the day, meaning that maybe your hydro generation is increasingly shifting to be more focused on peak demand periods. Can the hedging strategy be maybe adjusted somehow going forward to perhaps better capture higher power prices during these peak periods, or is that not the way we should be thinking about this going forward? Thanks.

Hi, thanks very much. I I wanted to ask about the hedging in the integrated Iberian Division and specifically the outlook for the hedging. Um um we've we've kind of like changing power supply Dynamics. Uh, are you far more solar generation during the day? Meaning that maybe your hydrogen generation is increasingly shifting to be more focused on Peak demand periods?

Miguel Stilwell de Andrade: That's great. What we've done in the past was to already change our hedging strategy so that we're not hedging 100% of our expected volumes, but 80% of our expected volumes. That was on the premise that there's more asymmetrical price movement on the upside than on the downside. That would allow us to then capture sort of increased prices. I think what you've seen.

Can the the hedging strategy be maybe adjusted somehow going forward to perhaps better capture higher, power prices, during these Peak periods or is that not the way we should be be thinking about this going forward. Thanks.

Miguel Viana: That's great. I think what we've done in the past was to already change our hedging strategy so that we're not hedging 100% of our expected volumes, but 80% of our expected volumes. That was on the premise that there's more asymmetrical, say, price movement on the upside than on the downside. That would allow us to then capture a sort of increase to the prices. I think what you've seen as a result of that strategy is that we've been able to take advantage, for example, of these increased hydro volumes as well and higher prices. We are able to get peak pricing or sort of a realized price for our hydro that is significantly higher than baseload. As you say quite rightly, as you have more solar, you start getting prices going to zero during the day or even negative.

Okay.

Um so I think what we what we've done in the past was to already change our heading strategy so that we're we're not hedging your 100% of our expected volumes but 80% of our expected volumes and that was on the premise that

There is more asymmetrical.

Miguel Stilwell d'Andrade: As a result of that strategy is that we've been able to take advantage, for example, of these increased hydro volumes also as well. Higher prices, and we are able to get peak pricing or sort of a realized price for our hydro that is significantly higher than baseload. As you say quite rightly, as you have more solar, you start getting prices going to 0 during the day, or even negative. You get quite a good arbitrage opportunities, particularly for the pumped storage. Higher realized prices on the hydro, higher pumped storage spreads. In terms of our hedging strategy, understood as locking in sort of future prices for baseload power. The basic change we did was moving to, let's say, around 80% of future expected loads.

Miguel Stilwell de Andrade: As a result of that strategy is that we've been able to take advantage, for example, of these increased hydro volumes also as well. Higher prices, and we are able to get peak pricing or sort of a realized price for our hydro that is significantly higher than baseload. As you say quite rightly, as you have more solar, you start getting prices going to 0 during the day, or even negative. You get quite a good arbitrage opportunities, particularly for the pumped storage. Higher realized prices on the hydro, higher pumped storage spreads. In terms of our hedging strategy, understood as locking in sort of future prices for baseload power. The basic change we did was moving to, let's say, around 80% of future expected loads.

Say price movement on on the upside than, than, on the downside. And so that would allow us to then capture sort of increase to the prices. I think what you've seen, um, as a result of that strategy is that we've been able to take advantage of, for example, of these increased, Hydro volumes also as well. And, um, and higher prices. And we are able to get

Take pricing or sort of a realized price for our Hydro, there's significantly higher than than base load.

Um,

Miguel Viana: You get quite a good arbitrage opportunity, particularly for the pump storage. Higher realized prices on the hydro, higher pump storage spreads. In terms of our hedging strategy, understood as locking in sort of future prices for baseload power, the basic change we did was moving to, let's say, around 80% of future expected loads. I'm not sure that there's much more to say in relation to that, let's say, to our hedging strategy in that.

As you say, quite rightly as you have more solar, you start getting prices going to zero during the day or or even negative and so you get quite a good Arbitrage opportunities, particularly for the pump storage.

um, so

higher realized prices on the hydro higher.

Pump storage spreads.

Um, but in terms of our hedging strategy, understood as locking in sort of future prices for baseload power, the basic change we did was moving to, let's say, around 80% of future expected loads.

Miguel Stilwell d'Andrade: I'm not sure that there's much more to say in relation to that, whether to our hedging strategy than that. Thanks. Useful color. Yep. Our last question from the phone comes from the line of Arturo Murua from Jefferies. Arturo, please go ahead. Thank you for taking my question. My question is regarding Brazil. There's an ongoing discussion around an electricity sector reform, mainly focused on market liberalization and improving sector balance. What's your view on this change, and any color will be helpful to see if it creates an opportunity to EDP in Brazil? Thanks. You're talking about in Iberia, or more generally in Europe. Oh, Brazil. No, no. In Brazil. Yeah. Okay. Market liberalization. Yeah. Yeah. Brazil, we're following that very closely, and we've had our team. You know, look at that, and. What I'd say is.

Miguel Stilwell de Andrade: I'm not sure that there's much more to say in relation to that, whether to our hedging strategy than that.

Skye Landon: Thanks. Useful color.

I'm not sure that there's much more to say in relation to that with respect to our hedging strategy.

Miguel Stilwell de Andrade: Thanks. Useful caller.

Miguel Viana: Yep. Our last question from the phone comes from the line of Arturo Murua from Jefferies. Arturo, please go ahead.

Thanks use for caller.

Yep.

Miguel Viana: Yep.

Miguel Stilwell de Andrade: Our last question from the phone comes from the line of Arturo Murua from Jefferies. Arturo, please go ahead.

Arturo Murúa: Thank you for taking my question. My question is regarding Brazil. There's an ongoing discussion around an electricity sector reform, mainly focused on market liberalization and improving sector balance. What's your view on this change, and any color will be helpful to see if it creates an opportunity to EDP in Brazil? Thanks.

Comes from the line of Arturo. Murua from Jeffries Artur, please go ahead.

Speaker 5: Thank you for taking my question. My question is regarding Brazil. There is an ongoing discussion around an electricity sector reform, mainly focused on market liberalization and improving sector balance. What is your view on this change? Any color will be helpful to see if this creates an opportunity for EDP in Brazil.

Thank you for taking my question. My question is regarding Brazil. There’s an ongoing discussion around an electricity sector reform mainly focused on market delivery stations and improving sector balance.

Miguel Viana: Thanks. You're talking about in Iberia or more generally in Europe? Oh, Brazil.

Miguel Viana: You're talking about in Iberia, or more generally in Europe. Oh, Brazil.

What's your view on this change? And any color will be helpful to see if this creates an opportunity to EDP in Brazil. Thanks.

You're talking about Iberia more generally and in Europe.

Arturo Murúa: No, no. In Brazil. Yeah.

Speaker 5: No, no, no.

Miguel Viana: In Brazil?

Speaker 5: Yeah.

Miguel Stilwell de Andrade: Okay. Market liberalization. Yeah. Yeah. Brazil, we're following that very closely, and we've had our team. You know, look at that, and. What I'd say is.

Miguel Viana: Okay.

Speaker 5: Market liberalization.

Miguel Viana: Yeah. So Brazil, we are following that very closely. We have had our team look at that. What I would say is the SME segment is going to be further liberalized. What you used to have was a very large set of customers which were in the liberalized market, but the rest was basically, you know, you had an integrated distribution and supply business. That is now you are getting sort of unbundling of that or expected over the next couple of years. As I say, I think 2026 for the SME sector, residential segment expected for around 2027. We are looking at how we could take advantage of this. We have, obviously, extensive experience of liberalized markets, both in Europe and in the U.S. We have a strong position, obviously, particularly in some areas like in Espírito Santo and in São Paulo.

Brazil in Brazil. Yeah, okay, yeah, yeah. So so Brazil. We're following that very closely. Um, and we've had our team. Um, you know, look at that and

Miguel Stilwell d'Andrade: The SME segment is going to be further liberalized. What you used to have was very large sort of customers, which were in the liberalized market. The rest was basically, you know, you had an integrated distribution and supply business. That's now you're getting sort of unbundling of that, or expected of the next couple of years. As I say, I think 2026 for the SME sector. Residential segment expected for around 2027. We're looking at how we could take advantage of this. We have, obviously, extensive experience of liberalized markets, both in Europe and in the US. We have a strong position, obviously, particularly in some areas like in Espírito Santo, and in São Paulo.

Miguel Stilwell de Andrade: The SME segment is going to be further liberalized. What you used to have was very large sort of customers, which were in the liberalized market. The rest was basically, you know, you had an integrated distribution and supply business. That's now you're getting sort of unbundling of that, or expected of the next couple of years. As I say, I think 2026 for the SME sector. Residential segment expected for around 2027. We're looking at how we could take advantage of this. We have, obviously, extensive experience of liberalized markets, both in Europe and in the US. We have a strong position, obviously, particularly in some areas like in Espírito Santo, and in São Paulo.

What I'd say is.

The SM segment is going to be further liberalized. What you used to have was a very large sort of customer base that was in the liberalized market, but the rest was basically, you know, you had an integrated distribution and supply business. And now you're getting sort of um,

Unbundling of our expected developments over the next couple of years. As I say, I think 2026 for the SME sector and the residential segment is expected around 2027. We’re looking at how we could take advantage of this. We have obviously extensive experience in liberalized markets, both in Europe and in.

In the U.S. And so we are.

Miguel Stilwell d'Andrade: We're waiting to see how the regulation develops, and how some of the key parameters come together. It's definitely when these changes happen, they could be good opportunities. We're looking at this as a positive development of the Brazilian market and really understanding how we position ourselves for that opportunity. Again, something we can probably develop a little bit more in the capital markets, say, in November. I'd say, we have a lot of experience in these type of markets, of liberalized markets. In Brazil, we, I think, would be well placed to take advantage of that. Thank you. Can I ask one more question? Sure. It's quite small regarding EDPR, specifically in APAC. Should we expect provisions in the second half, coming from Vietnam issue? I know it's small.

Miguel Viana: So we are waiting to see sort of how the regulation develops and how sort of some of the key parameters come together. But it is definitely, when these changes happen, they could be good opportunities. So we are looking at this as a positive development of the Brazilian market and really understanding how we position ourselves for that opportunity. Again, something we can probably develop a little bit more in the capital markets, say, in November. What I would say is we have a lot of experience in these types of markets, of liberalized markets. So in Brazil, I think we would be well placed to take advantage of that.

Miguel Stilwell de Andrade: We're waiting to see how the regulation develops, and how some of the key parameters come together. It's definitely when these changes happen, they could be good opportunities. We're looking at this as a positive development of the Brazilian market and really understanding how we position ourselves for that opportunity. Again, something we can probably develop a little bit more in the capital markets, say, in November. I'd say, we have a lot of experience in these type of markets, of liberalized markets. In Brazil, we, I think, would be well placed to take advantage of that.

We have a strong position, obviously, particularly in some areas like input and in Sabo.

So we're waiting to see sort of how the regulation develops and how sort of some of the the key parameters come together. But it's definitely when these changes happen, they could be good opportunities. So we're looking at this as a

As a positive development of the Brazilian Market.

and really,

Uh understanding how we position ourselves for that opportunity but again something we can probably develop a little bit more in the capital markets day in November but I'd say is we have a lot of experience in these type of markets of liberalized markets. So in Brazil we I think we would be well placed to to take advantage of that.

Arturo Murúa: Thank you. Can I ask one more question?

Speaker 5: Thank you. Can I ask one more question?

Miguel Stilwell de Andrade: Sure.

Arturo Murúa: It's quite small regarding EDPR, specifically in APAC. Should we expect provisions in the second half, coming from Vietnam issue? I know it's small.

Miguel Viana: Sure.

Thank you. And can I ask 1 more question?

Sure.

Speaker 5: It's quite small regarding EDP Renewables, specifically in APAC. Should we expect provisions in the second half coming from the Vietnam issue? I know it's small. I think it was like around 14, 15 million. But we should expect this in the second half?

Miguel Stilwell d'Andrade: I think it was like around EUR 14, 50 million. It's, we should expect this in the second half. Listen. No, I would say, base case. No, just based on the most recent information we've received. Obviously, it's an ongoing situation. I'd say that, let's say, the latest information we've had is that. We should be okay there. Obviously, if there is any material update, we would obviously inform the market and provide further color on that. Perfect. Thank you so much. Thank you. We have finished the questions on the line, and still have. We have reached one hour of the call, still time for one question from the web. Question from André Mulder.

Arturo Murúa: I think it was like around EUR 14, 50 million. It's, we should expect this in the second half.

Miguel Stilwell de Andrade: Listen. No, I would say, base case. No, just based on the most recent information we've received. Obviously, it's an ongoing situation. I'd say that, let's say, the latest information we've had is that. We should be okay there. Obviously, if there is any material update, we would obviously inform the market and provide further color on that.

It's quite small in relation to EDPR and specifically in APAC. Should we expect provisions in the second half coming from the Vietnam issue? I know it's more; I think it was around $1.45 billion, but should we expect this in the second half?

Miguel Viana: Listen, I would say base case, no, just based on the most recent information we've received. But obviously, it's an ongoing situation. I would say that the latest information we've had is that we should be okay there. But obviously, if there is any material update, we would obviously inform the market and provide further color on that.

Um listen no. I would say, base case know, just based on the most recent information we've received, but obviously, it's an ongoing situation.

Um, but I'd say that, let's say the latest information we've had is that we should be okay there.

But obviously, if there are any material updates, we would, um, obviously inform the markets and provide further color on that.

Arturo Murúa: Perfect. Thank you so much.

Speaker 5: Perfect. Thank you so much.

Miguel Viana: Thank you. We have finished the questions on the line, and still have. We have reached one hour of the call, still time for one question from the web. Question from André Mulder.

Perfect, thank you so much.

Miguel Stilwell de Andrade: Thank you. We have finished the questions on the line. We have reached one hour of the call, but still time for one question from the web. Question from Andrew Molder. With competition from capital, are you worried that the low network returns in Spain and Portugal, if not increased, will result in companies investing elsewhere and that the grid in Spain and Portugal will deteriorate rather than improve?

Miguel Stilwell d'Andrade: With competition from capital, are you worried that the low network returns in Spain and Portugal, if not increased, will result in companies investing elsewhere, and that degrees in Spain and Portugal with due rates rather than improve? Thank you, Andrew, for the question. What I'd say is that. There's a competition for capital in the world. We've seen. Capital will flow to where they get the more attractive returns. Clearly, the current rates in Portugal and Spain are not attractive. I think we need to be very clear that the current 5.6% in Portugal and Spain are not attractive and would not attract. The, let's say, would not incentivize investments here. I think if you look at some of the public consultation numbers that have come out, they've been pointing more towards the 7+% range.

Miguel Viana: With competition from capital, are you worried that the low network returns in Spain and Portugal, if not increased, will result in companies investing elsewhere, and that degrees in Spain and Portugal with due rates rather than improve?

Miguel Stilwell de Andrade: Thank you, Andrew, for the question. What I'd say is that. There's a competition for capital in the world. We've seen. Capital will flow to where they get the more attractive returns. Clearly, the current rates in Portugal and Spain are not attractive. I think we need to be very clear that the current 5.6% in Portugal and Spain are not attractive and would not attract. The, let's say, would not incentivize investments here. I think if you look at some of the public consultation numbers that have come out, they've been pointing more towards the 7+% range.

Thank you. So we have finished the questions on the line and still have reached one hour of the call, but there is still time for one question from the web. The question is from Andrew Molder: "With competition from capital, are you worried that the low network returns in Spain and Portugal, if not increased, will result in companies investing elsewhere and that the grid in Spain and Portugal will deteriorate rather than improve?"

Miguel Viana: Thank you, Andrew, for the question. What I'd say is that there's a competition for capital in the world. We've seen capital flow to where they get the more attractive returns. Clearly, the current rates in Portugal and Spain are not attractive. I think we need to be very clear that the current 5.6% in Portugal and Spain are not attractive and would not attract, let's say, would not incentivize investments here. I think if you look at some of the public consultation numbers that have come out, they've been pointing more towards the 7-plus range. We would like to see material movement in that direction. We're not going to comment specifically on ongoing consultations that are happening in Spain. What I'd say is if you want to incentivize investment, you need to remunerate that investment adequately in a competitive world where capital is fungible.

Thank you, Andrew, for the question.

What I'd say is that there's a competition for capital in the world.

we've seen and and capital will flow to where

they get the more attractive returns.

Clearly, the current rates in Portugal and Spain are not attractive.

Miguel Stilwell d'Andrade: We would like to see, you know, material movement in that direction. I mean, we're not going to comment specifically on ongoing consultations that are happening in Spain, but what I'd say is, if you want to incentivize investment, you need to remunerate that investment adequately. In a competitive world, and where capital is fungible. That's basically what I'd say at this point. I don't want to say much more, given the ongoing public consultations. We have finished. Maybe for some final remarks, Miguel. I mean, very simply, just reiterating, we had a good First Half. I think we're well positioned for the good Second Half. That's why we've also, you know, updated our guidance. Honestly, feeling good about where we are and looking forward to talking to you further about.

I think we need to be very clear that the current 5.6 portion of Spain are not attractive, and would not attract, unless it would not incentivize Investments here. I think if you look at sort of some of the public um consultation numbers that have come out, they've been pointed sort of more towards the 7 plus range.

Miguel Stilwell de Andrade: We would like to see, you know, material movement in that direction. I mean, we're not going to comment specifically on ongoing consultations that are happening in Spain, but what I'd say is, if you want to incentivize investment, you need to remunerate that investment adequately. In a competitive world, and where capital is fungible. That's basically what I'd say at this point. I don't want to say much more, given the ongoing public consultations.

Um, and so we would like to see, you know, material movement in that direction. I mean, we're not going to comment specifically on

on ongoing consultations that are happening in Spain, but

um,

but what I'd say is,

if you want to incentivize Investments, you need to remunerate that investment adequately in a competitive world where capital is fundable.

Miguel Viana: That's basically what I'd say at this point. I don't want to say much more given the ongoing public consultations.

Um,

Miguel Viana: We have finished. Maybe for some final remarks, Miguel.

So, that's basically what I'd say at this point. I don't want to see much more given the ongoing policy consultations.

Miguel Stilwell de Andrade: We have finished. So, maybe for some final remarks, Miguel.

Miguel Stilwell de Andrade: I mean, very simply, just reiterating, we had a good First Half. I think we're well positioned for the good Second Half. That's why we've also, you know, updated our guidance. Honestly, feeling good about where we are and looking forward to talking to you further about.

So, we have finished, me. So, maybe for some final remarks. Yeah.

Miguel Viana: I mean, very simply, just reiterating, we had a good first half. I think we're well positioned for the good second half. That's why we've also updated our guidance. Honestly, feeling good about where we are and looking forward to talking to you further about 2026 and beyond in the capital markets day. So I think we have the teams working flat out, including on the holidays, at least some of them, to really put together, I think, what could be an interesting capital markets day and be able to give you sort of additional information on all of these different areas of the business. With that, what I'd say is wish you all, if you're taking some time off now in August, get a good rest and look forward to talking to you again in September. Thank you.

I mean, very simply just reiterating

In the first half, I think we're well positioned for a good second half. That's why we've also updated our guidance.

Miguel Stilwell d'Andrade: 2026 and beyond in the Capital Markets Day. I think we have the teams working. Flat out, including on the holidays, at least some of them. To really put together. I think what could be an interesting Capital Markets Day in. Be able to give you sort of additional information on all of these different areas of the business. With that, what I'd say is, wish you all, if you're taking some time off now in August. Get a good rest. Look forward to talking to you again September. Thank you.

Miguel Stilwell de Andrade: 2026 and beyond in the Capital Markets Day. I think we have the teams working. Flat out, including on the holidays, at least some of them. To really put together. I think what could be an interesting Capital Markets Day in. Be able to give you sort of additional information on all of these different areas of the business. With that, what I'd say is, wish you all, if you're taking some time off now in August. Get a good rest. Look forward to talking to you again September. Thank you.

I'm honestly feeling good about where we are and looking forward to talking to you further about 2026 and beyond at the Capital Markets Day. I think we have the teams working.

Flat out, including on the holidays, at least some of them um to to really put together. I think what could be an interesting Capital markets day in and be able to give you sort of additional information and all of these different areas of the business. Uh, with that what I'd say is, wish you all if you taking some time off, now in August get a good rest and uh look forward to talking to you again, September. Thank you.

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