IMPACTOS

control over financial reporting 216

auditor’s report on the consolidated annual accounts 217

audit report on the system of internal control over

financial reporting 218

Thousands of Euros Notes 2012 2011 Revenues 6 1,157,796 957,217 Income from institutional partnerships in US wind farms 7 127,350 111,610 1,285,146 1,068,827 Other operating income / (expenses)

Other operating income 8 63,116 84,544 Supplies and services 9 -261,810 -225,069 Personnel costs and employee benefits 10 -62,659 -60,832 Other operating expenses 11 -86,212 -66,732 -347,565 -268,089 937,581 800,738 Provisions 3 266 Depreciation and amortisation expense 12 -502,709 -468,493 Amortisation of deferred income (government grants) 12 15,231 14,986 450,106 347,497 Gains / (losses) from the sale of financial assets 2,766 10,499 Financial income 13 74,188 61,555 Financial expenses 13 -351,804 -305,685 Share of profit of associates 6,833 4,796 Profit before tax 182,089 118,662 Income tax expense 14 -46,039 -28,038 Profit for the year 136,050 90,624 Attributable to:

Equity holders of EDP Renováveis 29 126,266 88,604 Non-controlling interests 31 9,784 2,020 Profit for the year 136,050 90,624 Earnings per share basic and diluted - Euros 28 0.14 0.10

EDP Renováveis, S.A. and subsidiaries

Consolidated Income Statement for the years ended 31 December 2012 and 2011

Equity Non- Equity Non- holders of -controlling holders of -controlling Thousands of Euros the parent Interests the parent Interests

Profit for the year 126,266 9,784 88,604 2,020

Fair value reserve (cash flow hedge) -38,469 -7,375 -10,827 -1,109 Tax effect from the fair value reserve (cash flow hedge) 7,875 1,922 1,622 200 Fair value reserve (available for sale investments) -129 -82 -7,673 844

Actuarial gains / (losses) 14 - 17 -

Tax effect of actuarial gains/(losses) -4 - -5 -

Exchange differences arising on consolidation 1,580 -6,861 -15,686 -1,357 -29,133 -12,396 -32,552 -1,422 97,133 -2,612 56,052 598 Total comprehensive income for the year

EDP Renováveis, S.A. and subsidiaries

Consolidated statement of comprehensive income for the years ended at 31 December 2012 and 2011

2012 2011

Other comprehensive income for the year, net of income tax

The following notes form an integral part of these Consolidated Annual Accounts

Thousands of Euros Notes 2012 2011 Assets

Property, plant and equipment 15 10,536,907 10,454,621 Intangible assets 16 24,915 21,819 Goodwill 17 1,301,930 1,311,845 Investments in associates 18 47,473 51,381 Available for sale financial assets 19 9,407 9,618 Deferred tax assets 20 89,378 55,558 Debtors and other assets from commercial activities 23 55,153 64,211 Other debtors and other assets 24 299,653 185,324 Total Non-Current Assets 12,364,816 12,154,377 Inventories 21 16,209 23,751 Trade receivables 22 180,259 146,105 Debtors and other assets from commercial activities 23 104,165 80,029 Other debtors and other assets 24 335,209 379,246 Current tax assets 25 55,089 41,288 Financial assets at fair value through profit or loss 389 211 Cash and cash equivalents 26 245,837 219,922 Total Current Assets 937,157 890,552 Total Assets 13,301,973 13,044,929 Equity

Share capital 27 4,361,541 4,361,541 Share premium 27 552,035 552,035 Reserves 28 -74,385 -40,545 Other reserves and Retained earnings 28 458,202 365,531

EDP Renováveis, S.A. and subsidiaries

Consolidated Statement of Financial Position as at 31 December 2012 and 2011

Other reserves and Retained earnings 28 458,202 365,531 Consolidated net profit attributable to equity holders of the parent 126,266 88,604 Total Equity attributable to equity holders of the parent 5,423,659 5,327,166 Non-controlling interests 29 325,168 126,559 Total Equity 5,748,827 5,453,725

Liabilities

Medium / Long term financial debt 30 3,657,083 3,691,068 Employee benefits 222 163 Provisions 31 63,603 57,982 Deferred tax liabilities 20 380,592 381,468 Institutional partnerships in US wind farms 32 1,679,753 1,783,861 Trade and other payables from commercial activities 33 376,503 404,233 Other liabilities and other payables 34 258,824 189,250 Total Non-Current Liabilities 6,416,580 6,508,025 Short term financial debt 30 217,237 135,054 Trade and other payables from commercial activities 33 704,610 707,590 Other liabilities and other payables 34 157,876 189,119 Current tax liabilities 35 56,843 51,416 Total Current Liabilities 1,136,566 1,083,179 Total Liabilities 7,553,146 7,591,204 Total Equity and Liabilities 13,301,973 13,044,929

Equity attributable to equity

Reserves holders Non-

Total Share Share and retained Exchange Hedging Fair value of EDP -controlling

Thousands of Euros Equity Capital Premium earnings Differences reserve reserve Renováveis Interests

Balance as at 31 December 2010 5,393,511 4,361,541 552,035 363,643 -15,316 -4,913 10,980 5,267,970 125,541

Recognised income and expense for the year

Fair value reserve (available for sale financial assets) net of taxes -6,829 - - -1,268 - - -6,405 -7,673 844

Fair value reserve (cash flow hedge) net of taxes -10,114 - - - - -9,205 - -9,205 -909

Actuarial gains/(losses) net of taxes 12 - - 12 - - - 12 -

Exchange differences arising on consolidation -17,043 - - - -15,686 - - -15,686 -1,357

Profit for the year 90,624 - - 88,604 - - - 88,604 2,020

Total recognised income and expense for the year 56,650 - - 87,348 -15,686 -9,205 -6,405 56,052 598

Dividends attributable to non-controlling interests -3,419 - - - -3,419

Share capital increase in EDP Renovaveis Brazil 1,493 - - - 1,493

Changes resulting from acquisitions / sales and equity increases 5,215 - - 2,810 - - - 2,810 2,405

Other 275 - - 334 - - - 334 -59

Balance as at 31 December 2011 5,453,725 4,361,541 552,035 454,135 -31,002 -14,118 4,575 5,327,166 126,559

- - - -

Recognised income and expense for the year

Fair value reserve (available for sale financial assets) net of taxes -211 - - - -129 -129 -82

Fair value reserve (cash flow hedge) net of taxes -36,047 - - - - -30,594 - -30,594 -5,453

Actuarial gains/(losses) net of taxes 10 - - 10 - - - 10 -

Exchange differences arising on consolidation -5,281 - - - 1,580 - - 1,580 -6,861

Profit for the year 136,050 - - 126,266 - - - 126,266 9,784

Total recognised income and expense for the year 94,521 - - 126,276 1,580 -30,594 -129 97,133 -2,612

Dividends attributable to non-controlling interests -4,805 - - - -4,805

Share capital increase in EDP Renovaveis Brasil 26,443 - - - 26,443

Sale without loss of control of Vento II (EDPR NA) 176,121 - - 4,057 -3,224 -1,473 - -640 176,761

Changes resulting from acquisitions / sales and equity increases 2,822 - - - 2,822

Balance as at 31 December 2012 5,748,827 4,361,541 552,035 584,468 -32,646 -46,185 4,446 5,423,659 325,168

EDP Renováveis, S.A.

Consolidated Statement of Changes in Equity for the years ended at 31 December 2012 and 31 December 2011

The following notes form an integral part of these Consolidated Annual Accounts

Thousands of Euros 2012 2011 Cash flows from operating activities

Cash receipts from customers 1,141,490 987,826

Cash paid to suppliers -285,247 -276,080

Cash paid to employees -68,893 -56,807

Other receipts / (payments) relating to operating activities -75,573 13,197 711,777 668,136

Income tax received / (paid) -45,465 -25,604

Net cash flows from operating activities 666,312 642,532

Continuing activities 666,312 642,532

Cash flows from investing activities Cash receipts resulting from:

Proceeds from sale of financial assets 11,113 66,644

Proceeds from sale of property, plant and equipment 2,273 40,075

Other proceeds related to fixed assets 489 605

Interest received 20,559 8,409

Dividends received 4,075 2,488

38,509 118,221 Cash payments resulting from:

Acquisition of subsidiaries (net of cash acquired) and other investments -28,880 -262,944 Acquisition of property, plant and equipment -612,495 -892,409 -641,375 -1,155,353 Net cash flows from investing activities -602,866 -1,037,132

Continuing activities -602,866 -1,037,132

Cash flows from financing activities

Sale of non-controlling interests 175,687 3,879

Receipts/ (payments) of loans -4,413 147,987

Interest and similar costs -215,330 -164,089

Governmental grants received 4,817 2,587

Increases in capital and share premium 26,517 5,863

Receipts/ (payments) from derivative financial instruments 166 -5,726

Dividends paid -4,805 -7,365

Receipts / (Payments) from institutional partnership in US wind farms -15,159 141,111 Net cash flows from financing activities -32,520 124,247

Continuing activities -32,520 124,247

Net increase / (decrease) in cash and cash equivalents 30,926 -270,353 Effect of exchange rate fluctuations on cash held -5,011 -10,364 Cash and cash equivalents at the beginning of the period (*) 219,922 500,639 Cash and cash equivalents at the end of the period (*) 245,837 219,922

(*) See Note 26 of the consolidated financial statements for a detailed breakdown of Cash and cash equivalents.

EDP Renováveis, S.A. and subsidiaries

Consolidated Statement of Cash Flows for the years ended 31 December 2012 and 2011