Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — 9M19 Earnings Presentation
25 slides from Edp's earnings presentation, Oct 31, 2019
Slide 1: 9M19 Results Presentation
9M19 RESULTS PRESENTATION Lisbon, October 31% 2019
Slide 2: Disclaimer
This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") solely for use at the presentation to be made on this date and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this presentation is made, o
Slide 3: 9M19 highlights: EBITDA, net profit, net debt
EBITDA: +10% YoY Renewables growth (0.9 GW built up YoY) and Asset Rotation deals (0.6 GW agreed YTD) Networks with robust growth in Brazil (Distribution & Transmission) EBITDA Hydro resources Portugal in 9M19 -39% vs. historical average Recurring Net Profit: +7% YoY Avg. cost of debt 4.0% on higher
Slide 4: Hydro and wind production and resources
EDP Hydro production in Iberia EDP Wind production TWh TWh 11.1 21.7 20.5 5.9 9M18 9M19 9M18 9M19 Hydro resources Wind resources vs. LT Avg.1 vs. LT Avg. (P50) 1) Hydro resources reference from Portugal only RESULTS PRESENTATION 4
Slide 5: EBITDA 9M19
EBITDA 9M19 € Mn; YoY growth,% Wind & Solar: Avg. Capacity +3%, avg. selling price +5%, asset rotation gains (+€0.2 Bn) 2,661 Renewables Hydro: Low volumes in Iberia vs. historical avg. (~-€0.25bn), partially 2,410 compensated by higher avg. selling price 1,662 Renewables 1,546 Strong growth in Braz
Slide 6: Operations: Opex evolution
Weight on Opex Operations Indicator YoY Change Main drivers Iberia Inflation +0.4% in PT and +0.8% in ES Opex1 Avg. headcount -4% YoY EDP Brasil Avg. Inflation: +3.9%2 Opex1 in BRL DisCos # Customers: +2% YoY EDPR Avg inflation in our geographies4: +1.6% Adj. Core Opex1/MW3 Avg MW +3% Opex ex-forex1
Slide 7: Net Profit 9M19
Net Profit 9M19 € Mn Recurring 545 585 460 YoY Reported 113 Spain: Deterioration of coal load factors and positive fiscal impact in 2018 297 139 283 EDPR net profit +197% YoY: propelled by capacity growth, higher avg selling price and asset rotation strategy 95 EDP Brasil net profit +12% YoY in BRL:
Slide 8: Strategy Execution
Strategy Execution
Slide 9: Renewables capacity build-out and offshore wind
Renewables Capacity LT contracts secured for 19-22 Projects already secured Build-out GW; Oct-19 , of which 1.8 GW 4.9 GW 4.9 GW since Jul-19 1.7 1.3 0.2 1.0 0.5 0.9 0.1 0.4 1.3 0.7 0.9 0.6 Dec-18 Oct-19 2019 2020 2021 2022 under construction by Sep-19 Wind offshore: EDP/Engie JV progressing on form
Slide 10: Networks Brazil: Regulated Asset Base
Regulated Asset Base Previous Reg. Period R$ Bn New Regulatory Period 2.58 1 line in operation (20 months ahead of schedule) 2.42 4 lines under construction 2.01 1.67 1 line in permitting stage of CAPEX executed in 9M19 EDP Esp. Santo EDP São Paulo of funding already secured at better than RoRAB @ 8
Slide 11: Potential disposal of merchant generation assets in Portugal
Potential disposal of a portfolio of merchant generation assets in Portugal (~1.7 GW) Ongoing due diligence process by a selected group of interested parties with view to binding offers by year end Other complementary/alternative options also being considered Implicit valuations above business plan
Slide 12: Strong engagement with decarbonization
within integrated utilities 2050 Commitment: Carbon neutrally EDP is one of the 87 global Best-in-Class (score 100/100) in 9 criteria namely: corporations that have recently pledged to reduce emissions and Climate Strategy ensure global warming does not exceed 1.5oC and reaching net- Water Related R
Slide 13: Strategy execution summary and outlook
Renewables: target additions for 2019-22 (7.0 GW) secured with LT contracts (4.9 GW) Networks Brazil: Visibility on distribution (RAB ); transmission ahead of schedule Asset Rotation: proceeds agreed, implicit valuations above strategic plan assumptions Asset rotation Brazil closing in 4Q19 Asset di
Slide 14: Results Analysis
Results Analysis
Slide 15: Installed capacity and electricity production by technology
Installed capacity breakdown by technology Electricity production breakdown by technology GW TWh 0.4 GW in North America -47% YoY in Iberia 1 GW in Europe (0.5 GW net) -26% YoY in Brazil 27.0 -1.4 54 0.9 26.3 +1 -0.2 -6 48 -1 40% 45% Renewables Renewables 33% 19% 15% 14% 12% 18% 1% 2% Sep-18 Built-o
Slide 16: EBITDA – Wind & Solar
EBITDA – Wind & Solar € Mn; YoY growth,% 1.218 9M18 9M19 YoY Avg. Installed Capacity1, GW 869 740 Production vs. LT Avg. (P50), % Europe 455 Electricity Production, TWh Avg. selling price, €/MWh 456 North America 411 Brazil & Other Asset Rotation Gains, € Mn 3 23 9M18 9M19 1) Considers capacity at E
Slide 17: EBITDA – Hydro
EBITDA – Hydro € Mn; YoY growth,% 9M18 9M19 YoY 676 Hydro Capacity, MW Hydro Production, TWh 443 Portugal 487 Avg selling price, €/MWh 299 9M18 9M19 YoY Spain 40 Hydro installed capacity, MW 16 Brazil 150 129 Avg selling price, $R/MWh 9M18 9M19 RESULTS PRESENTATION 17
Slide 18: EBITDA – Networks
EBITDA – Networks € Mn; YoY growth,% 9M18 9M19 YoY Return on RAB PT 1, % 749 RAB, €Mn 634 Opex2, €Mn 382 Portugal 368 9M18 9M19 YoY 117 Electricity distributed, TWh Spain 108 250 Transmission EBITDA, € Mn Brazil 158 RAB distribution3, € Mn 9M18 9M19 VNR4, € Mn 1) RoRAB of HV/MV | 2) Excludes IFRS16
Slide 19: EBITDA – Client Solutions & Energy Management
EBITDA – Client Solutions & Energy Management € Mn; YoY growth,% Normalization of supply margins in Iberia, following a 284 particularly adverse 9M18 239 Deterioration of coal load factors (80% 3Q18 vs. 22% 3Q19) 115 Better results from energy management and forward Thermal & EM Iberia 83 hedging in
Slide 20: ERSE's tariff proposal for 2020
ERSE’s tariff proposal for 2020: Portuguese electricity system debt Avg. last resort tariff for residentials: -0.4%, avg. access € Bn tariff: +1.1% Lower 10-year Portuguese bond yields: Distribution return on RAB in line with 2019, at 5.16%1; some negative one- offs penalizing 2020 distribution regu
Slide 21: Change in Net Debt: Sep-19 vs. Dec-18
Change in Net Debt: Sep-19 vs. Dec-18, € Bn New Hybrid (50% equity): -€0.5 Bn Forex: -€0.1 Bn Reg. Receivables: -€0.1 Bn -0.3 13.8 13.5 0.7 -1.0 0.9 Annual Dividend paid in May Net Debt Recurring Organic Net expansion Dividends to Other & One-off Net Debt Dec-18 CF investment Shareholders Jun-19 € B
Slide 22: Net Financial Costs and nominal debt by currency
Net Financial Costs: 9M19 vs. 9M18 Nominal debt by currency3 € Mn +4% Euro 545 denominated 527 19 Hybrid 510 17 55% 63% 66 443 USD 32% 27% BRL Other 8% 11% 2% 2% 9M18 Non- 9M18 adj. Interest 9M19 adj. Non- 9M19 9M18 9M19 interest1 related interest2 impacted by €1bn hybrid bond issue in Jan-19 and hi
Slide 23: Debt maturities and market yields
Market yields of 5y1 EDP Bonds, % (Jan-Sep 2019) EDP consolidated debt maturities in 4Q19-2022 € Bn and Senior bonds’ coupon rate Other debt6 EUR2 USD3 BRL4 BRL debt 1.8 USD bond 6 1.7 EUR bond 5 ∆ Jan-Sep 1.4 1.2 4 2.9% 4.1% 3 5.3% 2 2.0% 4.9% 2.6% 1 4.9% 0.2% 4.1% 0 4.1% Jan Feb Mar Apr May Jun Ju
Slide 24: 9M19 Reported Net Profit
9M19 Reported Net Profit, € Mn YoY Key comments ; propelled by improved results of wind & solar and EBITDA 2,661 251 networks Brazil Amort, Impair. & Non recurring provisions: In 3Q19 Fridão (€87 Mn); in 3Q18 CMEC 1,190 141 Provisions (€285 Mn) EBIT 1,471 393 Financial Results & Adverse YoY compa
Slide 25: IR Contacts and Next Events
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Next Events Nov 4-5th: London Roadshow Nov 20th : London (UniCredit Fixed Income Feb 20th: YE19 results Nov 11th-13th: US Roadshow Conf.) Nov 13th: London (UBS Conference) Dec 4th: Paris (Soc. Générale Conf.) Dec 10th: Paris (Cr
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