Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — H1 2019 Earnings Presentation
23 slides from Edp's earnings presentation, Jul 26, 2019
Slide 1: 1H19 Results Presentation
1H19 RESULTS PRESENTATION Lisbon, July 26' 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: EBITDA +11% YoY; Net Profit +7% YoY; Net debt -1%
EBITDA: +11% YoY Renewables growth (+0.9 GW built YoY) and Asset Rotation deals (+0.5 GW agreed YTD) Networks with Growth in Brazil (Distribution & Transmission) and lower OPEX in Iberia EBITDA Hydro resources Portugal in 1H19 -44% vs. historical average Net Profit: +7% YoY EBIT +14% supported by gr
Slide 4: Hydro production in Iberia and wind resources vs long-term average
EDP Hydro production in Iberia1 EDP Wind resources vs Long-term average (P50) 1Q 2Q Hydro TWh 5% resources vs. LT Avg. (2018)2 8.7 2Q -1% 4.3 1Q -7% -8% 1H18 1H19 1H18 1H19 Hydro resources Wind resources vs. LT Avg.2 vs. LT Avg. 1) Average of monthly hydro coefficient from REN ; 2) Hydro resources r
Slide 5: EBITDA 1H19
EBITDA 1H191 € Mn; YoY growth,% Wind & Solar: Capacity +6%, avg. selling price +5% and asset rotation gain (+€0.2bn) more than offset slightly lower wind resources (-4% vs. LT avg.) 1,908 Renewables 1,722 Hydro: Low volumes in Iberia vs. historical avg. (-€0.2bn), partially compensated by higher avg
Slide 6: Operations: Opex Iberia and EDP Brasil
Weight on Opex Operations Indicator YoY Change Main drivers Iberia Inflation Portugal +0.6%2 Opex1 -4% avg. Headcount vs Jun-18 EDP Brasil Avg. Inflation: +4.2%3 Opex1 in BRL DisCos # Customers: +2% YoY EDPR Avg inflation in our geographies5: +1.6% Adj. Core Opex1/MW4 Avg MW +6% Opex ex-forex1 Gener
Slide 7: Reported Net Profit 1H19
Reported Net Profit 1H19 € Mn 405 YoY 380 83 Spain: Deterioration of dark spreads and positive fiscal 82 impact in 1H18 129 283 EDPR net profit +147% YoY: propelled by Asset Rotation 115 EDP Brasil net profit +10% YoY in BRL: strong growth in 54 56 Networks offset by lower energy management results
Slide 8: Strategy Execution
Strategy Execution
Slide 9: 3.3 GW of the ~7.0 GW target
3.3 GW of the 30% already incurred (20% executed in 1H19) ~7.0 GW target 19-22 1 line in operation (20 months ahead of schedule) 3 lines under construction +0.5 GW US +0.2 GW Europe under 2 lines in permitting stage (1 line added in 1H19) +0.1 GW Brazil construction by Jun-19 Dec-18 Jul-19 1) Total
Slide 10: EDP/Engie JV for off-shore wind
Top players Global Off-shore Wind(1) EDP/Engie JV for off-shore wind: Projects with PPA/FiT secured (by capacity secured with PPA/FiT for 2025E) GW Project CoD MW JV Stake (%) Floating off-shore 2019E 49 80.0 Seamade 2020E 487 17.5 Moray East 2022E 950 56.6 Tréport & Nourmoutier 23E/24E 992 60.5 2.5
Slide 11: Portfolio of merchant generation assets in Portugal for potential disposal
Identification of a portfolio of merchant generation assets in Portugal (>1.5GW) for potential disposal Strong market interest and selection of a restricted group of interested parties to present non-binding offers (end of July) Other complementary/alternative options also being considered Implicit
Slide 12: Renewables: +0.9 GW built YoY; +0.8 GW PPAs
Renewables: +0.9 GW built YoY; +0.8 GW PPAs (46% secured out of 7.0 GW for 19-22) 50:50 JV with Engie for Wind Offshore: Top 5 Global player Networks Brazil: Transmission lines ahead of schedule (30% incurred), competitive funding Asset Rotation deals: €0.8bn YTD of value crystallization (20% of 19-
Slide 13: Results Analysis
Results Analysis
Slide 14: Installed capacity and electricity production breakdown by technology
1H19 Wind Hydro Solar CCGT Coal Other(1) Installed capacity breakdown by technology Electricity production breakdown by technology GW TWh 1% 2% 12% 19% 14% 41% 47% 1% 11% 0% 32% 20% in renewables capacity in renewables production 1) Others include thermal special regime (cogeneration, biomass) and n
Slide 15: EBITDA – Wind & Solar
EBITDA – Wind & Solar € Mn; YoY growth,% 961 1H18 1H19 YoY Avg. Installed Capacity1, GW 686 623 Production vs. LT Avg. (P50), % Europe 367 Electricity Production, TWh Avg. selling price, €/MWh North America 311 327 Brazil & Other Asset Rotation Gains, € Mn 8 11 1H18 1H19 1) Considers capacity at EBI
Slide 16: EBITDA – Hydro
EBITDA – Hydro € Mn; YoY growth,% 1H18 1H19 YoY 470 Hydro factor Portugal (1.0 = avg.) Hydro Production1, TWh 302 Avg selling price, €/MWh Portugal 324 190 1H18 1H19 YoY Spain 36 Generation Scaling Factor (GSF) 15 Brazil 110 97 Average spot price PLD, $R/MWh 1H18 1H19 % of annual energy contracts al
Slide 17: EBITDA – Networks
EBITDA – Networks € Mn; YoY growth,% 472 1H18 1H19 YoY 420 Return on RAB PT 1, % 258 Opex, €Mn Portugal 244 1H18 1H19 YoY 81 Spain 70 Electricity distributed, TWh Brazil 106 133 Transmission EBITDA, € Mn 1H18 1H19 1) RoRAB of HV/MV RESULTS PRESENTATION 17
Slide 18: EBITDA – Client Solutions & Energy Management
EBITDA – Client Solutions & Energy Management € Mn; YoY growth,% 1H18 1H19 YoY CCGT production, TWh 208 167 Services to electricity contracts ratio 61 4 Normalization of operating margins in Iberia, following a particularly Thermal Brazil 71 adverse 1H18. Supply & EM Brazil 19 100 1H18 1H19 YoY Pecé
Slide 19: Change in Net Debt: Jun-19 vs. Dec-18
Change in Net Debt: Jun-19 vs. Dec-18, € Bn New Hybrid (50% equity): -€0.5 Bn Reg. Receivables & other(2): -€0.2 Bn More than doubled YoY 85% in renewables +16% YoY 0.7 -0.7 14.0 13.5 1.2 -0.7 Annual Dividend paid in May Net Debt Recurring Organic Net expansion Dividends to Other & One-off Net Debt
Slide 20: Financial liquidity and debt maturity profile as of Jun-19
Financial liquidity as of Jun-19 EDP consolidated debt maturity profile as of Jun-19 EDP Brasil € Bn € Bn EDP SA & EDP Finance BV and Other 3.4 Cash & Equivalents: 2.6 1.8 1.5 1.6 1.7 1.6 Available Credit Lines: 1.4 0.8 Total Liquidity 2019 2020 2021 2022 2023 2024 2025 2026 > 2026 2019 Jan 23rd: €1
Slide 21: Net Financial Costs and nominal debt by currency
Net Financial Costs: 1H19 vs. 1H18 Nominal debt by currency € Mn +3% Euro 371 5% 11% denominated 353 18 Hybrid 342 11 65 Euro 63% 47% 277 USD 30% 21% BRL Other 8% 10% 4% 2% 1H18 Non- 1H18 adj. Interest 1H19 adj. Non- 1H19 Jun-18 Jun-19 interest1 related interest2 impacted by €1bn hybrid bond issue i
Slide 22: 1H19 Reported Net Profit
1H19 Reported Net Profit, € Mn YoY Key comments EBITDA 1,908 187 ; recurring EBITDA +10% (excl. -€18m from CMECs in 1H18) Amort, Impair. & 740 -45 Generation capacity increase of +2% Provisions EBIT 1,168 142 Financial Results & Adverse YoY comparison of non interest related items 358 -85 Associa
Slide 23: IR Contacts and Next Events
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Next Events Sep 6th: Porto (CaixaBank BPI Conf.) Sep 17th : London (UBS Renewables Conf.) October 30th: 9M19 results release Sep 11th: London (BBVA Iberian Conf.) Sep 24-25th: New York (Santander Conf.) Sep 12-13th: London (Morg
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