Slide 1: Results Presentation 1Q18
<5 Results Presentation 1Q18 Lisbon, May 11th, 2018
Slide 2: Recurring EBITDA -4% YoY to €911m
Recurring (1) EBITDA -4% YoY to €911m Renewables and Brazil underlying growth offset by forex (-6%) and regulatory changes in Portugal (-€66m YoY) +0.6GW YoY additions of wind and solar capacity; renewables reach 74% of total generation capacity Opex ex-forex +1% YoY (vs. avg. capacity +4% and # cus
Slide 3: Recurring EBITDA
Recurring EBITDA(1) (€ million) USD: -13% vs EUR +8% -6% BRL: -16% vs EUR -54 Gas networks +79 58 Iberia (deconsolidated -66 in 2H17) -4% 953 2H17 measures 911 impacting 1Q18 YoY 1Q17 Growth Forex Regulation 1Q18 Portugal (1) 1Q17 on a proforma base excluding gas networks (discontinued operations);
Slide 4: Recurring EBITDA growth ex-forex and weight by business
1Q18 Weight in Recurring EBITDA Recurring EBITDA(1) growth ex-forex Key highlights: 42% EDPR +8% ▪ Avg. installed capacity: +7% (mostly US and Brazil) (+2% in Euros) 28% Portugal ▪ Generation: lower CMEC revenues (final adjustment -€6m); higher clawback/coal levy (-€17m) G&S + Distr.(2) -29% ▪ Distr
Slide 5: Hydro production in 1Q18 +1TWh YoY but still -2TWh vs. historical average
EDP Hydro production in Iberia(1): Evolution of hydro reservoirs in Portugal(2): (TWh) (%) 1Q18 1Q17 1Q Historical avg. 1Q 80 78 +1.1TWh ~2TWh 72 4.2 70 3.1 ~1TWh 61 +0.4TWh 61% 60 March 33% January & 50 67% February 39% 40 1Q17 1Q18 1Q Hist. Avg. January February March Hydro production in 1Q18 +1TW
Slide 6: Opex
Weight on Opex Business area Indicator YoY Change Main drivers ▪ Avg. MW: +3%; # customers: +1% 55% Iberia Opex(1) -1% ▪ Inflation Portugal +0.8%(2) 27% EDPR Adj. Core Opex/MW(3) -1% ▪ Avg. installed capacity: +7% 17% EDP Brasil Opex in BRL -3% ▪ Avg. Inflation 1Q18: +2.8%(4) (1) Proforma excluding
Slide 7: Net Interest Cost and Marginal Cost of Debt
Net Interest Cost Marginal Cost of Debt (€ million) (%) Currency weight on nominal financial debt -16% 175 Mar-17 Mar-18 YoY EURO 67% 1.2% 0.8% -40bp 148 EDP 5Y Bond Yield USD 21% 3.3% 3.7% +40bp EDP 5Y Bond Yield 1Q17 2Q17 3Q17 4Q17 1Q18 BRL 9% 13.4% 6.6% -620bp CDI Avg. Rate Avg. Cost of Debt (%)
Slide 8: Net Profit 1Q18
Net Profit 1Q18(1) (€bn) Chg. €m YoY(1) -12% 189 21 166 +31% 28 +€7m Net profit in BRL +59% 53 +48% 78 +€25m Net profit +39%; EDP stake +5.1% to 82.6% 115 -48% Portugal: -65% YoY on 2H17 regulatory changes 60 -€55m Spain: +10% YoY on market improvement(2) 1Q17 1Q18 (1) On a proforma base excluding g
Slide 9: EDPR capacity under construction and secured PPAs
1.0GW(1) under construction | Mar-18 1.4GW secured PPAs/FIT post 2018 Wind offshore projects 1Q18 On track to 2H18E FID in UK main +0.2GW started in US +0.6GW signed in US +20% sell down(2) events FID: 2018E (3) COD: 2022E 0.1 0.3 0.6 0.2 1.0GW 1.4GW 1.9GW 0.95 0.99 0.7 0.2 0.3 FID: 2020E COD: 2023/
Slide 10: EDP Brasil projects: São Manoel, transmission lines, Celesc
São Manoel ▪ Delivery ahead of schedule (1st turbine 4 months ahead of PPA start-date) Hydro Plant (700MW|33%) ▪ Revision of contracted volumes improves economics and reduces GSF risk Greenfield ▪ Construction of L24/2016 transmission line: 17 months ahead of schedule Transmission Lines ▪ Ongoing ne
Slide 11: 2018 Outlook
EBITDA drivers for 2018E Growth of hydro volumes and electricity demand 2018 Outlook Iberia Lower regulated revenues in distribution; higher clawback Efficiency improvements EBITDA ~€3.4bn Wind capacity additions: EDPR Mostly US and Brazil Negative Forex impact Net Profit ~€0.8bn EDP Brasil Growth i
Slide 12: Results Analysis
rede Results Analysis
Slide 13: Installed capacity and electricity production breakdown by technology
Installed capacity breakdown by technology: Mar-18 Electricity production breakdown by technology 1Q18 (GW, YoY Chg.) (TWh, YoY Chg.) Wind Hydro Solar CCGT Coal Other(1) Wind Hydro Solar CCGT Coal Other 2% 12% 1% 19% 14% 39% 42% 26.8 GW 6% 20.6 TWh 1% +3% YoY 0.2% +7% YoY 34% 30% 74% 72% Renewables
Slide 14: EDPR installed capacity and EBITDA
Installed Capacity EDPR EBITDA (GW) (€m) Europe North America Brazil Europe (1) North America Brazil Avg. MW +7% ex-forex +8% +6% +2% 10.7 373 381 10.1 +62% 3% 2% -19% 1% 2% 38% 48% 49% 46% -16% +9% +1% 52% +18% 60% 50% 47% 1Q17 1Q18 1Q17 1Q18 Good wind resources (5% above P50) offset by -5% avg. se
Slide 15: Recurring EBITDA Generation & Supply Iberia
Recurring EBITDA Generation & Supply Iberia (1) (€m) 1Q17 1Q18 YoY Avg. selling price to customers 65 66 +2% (€/MWh) +1% Hydro weight 33% 48% +15pp (%) 201 204 CMEC 55 Avg. fuel cost (gen. mix)(3) (€/MWh) 30 25 -17% deviation(2) Regulatory costs (€m) 43 58 +34% CMEC deviation revenues 55 5(4) -91%
Slide 16: EDP Brasil EBITDA
EDP Brasil EBITDA (R$m) Distribution Pecém I Hydro Gen., Supply & Other Mar-17 Mar-18 YoY +18% Pecém availability 649 94% 98% +4bp 550 (%) 274 +15% 238 Distribution Espírito Santo 13.1% 11.9% -1.2pp +36% 131 grid losses(1) 96 (%) São Paulo 9.6% 8.9% -0.7pp 216 +13% 244 1Q17 1Q18 Positive results f
Slide 17: Pro-forma EBITDA – Regulated networks
Pro-forma(1) EBITDA – Regulated networks (€m) Electricity Spain Electricity Portugal 1Q18 YoY -23% Regulated revenues 272 -14% 207 (€m) 40 -17% Return on RAB 159 5.45% -137bp (%) 34 OPEX 84 -7% 166 (€m) -24% 126 Electricity distributed (TWh) 12 +4% 1Q17 1Q18 Cut on regulatory revenues in Portugal
Slide 18: Change in Net Debt: Mar-18 vs. Dec-17
Change in Net Debt: Mar-18 vs. Dec-17 (€bn) Regulatory Receivables Net debt excluding reg. receivables 13.9 -0.3 +0.3 0.0 -0.1 13.8 0.9 0.9 13.0 13.0 Net Debt Rec. Organic Net expansion Reg. Receivables Forex Net Debt Dec-17 FCF (1) investments (2) Mar-18 1Q17 (€bn) -0.4 +0.6 -0.3 0.0 Adj. Net Debt
Slide 19: Financial liquidity and debt maturity profile
Financial liquidity as of Mar-18 EDP consolidated debt maturity profile as of Mar-18 (€bn) (€bn) 5Y RCF signed Mar-18 - EDP Finance B.V. EDP S.A., EDP Finance B.V. and Other EDP Brasil Cash & Equivalents: €1.3bn €1bn drawdown from 5Y RCF Avg. Debt Maturity: 4.9Y signed in Mar-18 (replacing previous
Slide 20: Net Financial Costs: 1Q18 vs. 1Q17
Net Financial Costs (1) : 1Q18 vs. 1Q17 (€m) -36% ▪ Net interest costs: -16% YoY 197 ▪ Lower revenues from regulatory (28) receivables due to lower interest rates (29) 15 (14) (15) 126 ▪ Forex & energy derivatives: (€25m in 1Q18, including derivatives in energy markets, vs. -€5m in 1Q17) ▪ Capital g
Slide 21: 1Q18 EBITDA to Net Profit
1Q18 EBITDA to Net Profit (1) (€m) Chg. €m YoY(1) EBITDA 893 -€60m -€84m regulation Portugal; -€58m forex Amort., Impair. 344 +€7m +€18m forex; +4% avg. installed capacity & Provisions EBIT 549 -€53m Financial Results +€67m +€28m lower interest costs; +€29m forex and derivatives 126 & Associates Inc
Slide 22: IR Contacts
IR Contacts Miguel Viana, Head of IR Sónia Pimpão João Machado Maria João Matias Sérgio Tavares Noélia Rocha E-mail: ir@edp.pt Phone: +351 210012834 Visit EDP Website Next Events Site: www.edp.com May 16th-17th: London Roadshow (Kepler Cheuvreux) Link Results & Presentations: Jun 5th -6th: Credit Su