VALUATION COMPS TABLE

Research evidence excerpt

VALUATION COMPS TABLE

Jorge Alonso Suils +34 915 893 913 jorge.alonso@bernsteinsg.com 2 July 2026

DETAILS

As outlined in our April sector update, EDP and EDPR remain among our top picks. In this series, we explore key pillars of their equity

stories. In Part 3, we focus on EDP’s regulated networks which we believe offers visible and resilient earnings with solid returns.

KEY TAKEAWAYS

REGULATORY CATALYSTS PROVIDE ENHANCED VISIBILITY

EDP's networks division contribute ~30% to EBITDA and represent ~25% of our EV. The regulated networks have recently

benefited from a series of regulatory catalysts that establish clear earnings visibility through 2030 and beyond. The transition to

new regulatory cycles across Iberia starting in 2026 has significantly enhanced EDP's return visibility and improved

baseline regulatory returns. In Portugal, the new 2026-29 regulatory period established a pre-tax nominal return at 6.70%,

showing a 200bps increase over the previous period. Spain similarly transitioned to a 6.58% pre-tax nominal return for its

2026-31 period, moving up from 5.58% previously.

In Brazil, EDP has secured long-term operational certainty through major distribution concession extensions. The distribution

concession for EDP Espírito Santo has been successfully extended for 30 years, guaranteeing operational rights until July 2055.

EDP São Paulo's concession has also received an early 30-year renewal, moving its final expiration date from 2028 to 2058.

HIGH QUALITY EARNINGS SUPPORTED BY REGULATORY FRAMEWORKS

EDP's earnings quality is underpinned by robust regulatory structures that provide multiple layers of return protection and

incentive alignment. The Portuguese framework indexes its returns to 10-year government bond yields, acting as a structural