Iberdrola Sa · BME:IBE
Iberdrola Sa — Q1 2019 Earnings Presentation
32 slides from Iberdrola Sa's earnings presentation, Apr 25, 2019
Slide 1: Results Presentation First Quarter April 2019
Results Presentation First Quarter April 25 /2019 as IBERDROLA 2
Slide 2: Legal Notice
Legal Notice DISCLAIMER This document and the information presented herein was prepared by Iberdrola, S.A. This document has been prepared by Iberdrola, S.A. exclusively for use during solely with respect to the consolidated financial results of Iberdrola, S.A. and was the presentation of financial
Slide 3: Legal Notice: Forward-Looking Statements
Legal Notice FORWARD-LOOKING STATEMENTS This communication contains forward-looking information and statements about Iberdrola, S.A., including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operati
Slide 4: Highlights of the Period
Agenda Highlights of the Period 4
Slide 5: Highlights of the period
Highlights of the period Net Profit grows 15% reaching EUR 964 M, thanks to: EBITDA totals EUR 2,599 M, up 11.9% increasing in all businesses Ongoing improvement in operational efficiency Operating Cash Flow grows 8.5% to EUR 2,037 M Maintaining financial strength 5
Slide 6: Strong growth in all businesses…
EBITDA Strong growth in all businesses… EBITDA by business Operating Highlights Networks Generation & Supply • Brazil: tariff increases, higher demand and efficiencies +19.2% • US: higher tariffs 23% Renewables • Higher prices and higher offshore production • New installed capacity in Mexico 2,599 M
Slide 7: …while maintaining financial strength
Operating Cash Flow Operating Cash Flow up 8.5%... Operating Cash Flow (FFO1) Net Debt / EBITDA +8.5% 2,037 -29 b.p. 1,877 3.98x 3.69x Q1 2018 Q1 2019 Q1 20182 Q1 2019 …while maintaining financial strength 1 FFO = Net Profit + Minority Results + Amortiz.&Prov. – Equity Income – Net Non-Recurring Res
Slide 8: Renewables: Net Investments and Generation capacity
Net Investments: Generation capacity Adding 4.1 GW of capacity during 2019 and reaching 12.9 GW by 2022 … Installed capacity Capacity – Commissioning date New capacity MW Q1 2019 Q2-Q4 2019 2020 2021 2022 2019-2022 490 224 Offshore 800 1,514 14 975 321 122 200 70 214 202 Onshore 68 135 100 3,273 472
Slide 9: Renewable Pipeline
Renewable Pipeline The largest renewable pipeline in the industry: more than 39.5 GW… Total Pipeline +4.3 GW +17.9 GW +39.5 GW 3.6 7.5 0.7 6.0 14.0 4.4 12.4 11.0 +10.6 GW 6.8 +2.6 GW 2.1 1.6 2.1 1.1 1.4 RoW +2.3 GW Offshore Onshore Hydro Solar 1.3 0.9 +1.9 GW 0.1 wind wind 1.5 0.4 9
Slide 10: Renewables technologies comparison
Renewables technologies comparison A balanced mix of technologies including high-value offshore wind… Total IBERDROLA Pipeline EBITDA contribution per MW (GW) (x times solar based) Solar 14.0 1 Onshore wind 11.0 1.4x Offshore wind 12.4 5x …equals ~90 GW of solar pipeline in terms of EBITDA contribut
Slide 11: Other milestones I
Other milestones I Agreement for the sale of the long-term rights of use for the excess capacity of optical fibre network. Positive impact not included in Q1 Transfer to CNMC of the responsibility to set up electricity tariffs from 2020 Agreement for an orderly phase out of the Spanish nuclear
Slide 12: Other milestones II: Annual General Meeting
Other milestones II Annual General Meeting Quorum of 74.12% Average support of over 98% for the items on the Agenda 99.2% Group 1: Financial statements and corporate management 99.9% Group 2: Corporate Governance System 98.3% Group 3: Remunerations 98.2% Group 4: Board of Directors 12
Slide 13: Dividend
Dividend The Board of Directors approved yesterday (24th April 2019), the execution in July 2019 of “Iberdrola Retribución Flexible” program of at least EUR 0.2 per share in cash or shares to reach an annual shareholder remuneration of EUR 0.351 per share (+7.7%) • Share buy-back to maintain the num
Slide 14: Analysis of Results
Agenda Analysis of Results 14
Slide 15: Income Statement / Group
Income Statement / Group Reported Net Profit up +15.0%, to EUR 963.9 M EUR M Q1 2018 Q1 2019 Var. % Revenues 9,343.5 10,138.9 +795.4 +8.5 Gross Margin 4,008.8 4,323.1 +314.3 +7.8 Net Operating Expenses -1,000.4 -1,081.3 +80.8 +8.1 Levies -684.9 -642.5 +42.4 -6.2 EBITDA 2,323.5 2,599.4 +275.9 +11.9 E
Slide 16: Gross Margin / Group
Gross Margin / Group Gross Margin up +7.8%, to EUR 4,323.1 M,… EUR M Revenues Procurements +8.5% +9.0% 10,138.9 9,343.5 5,334.7 5,815.8 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Revenues grew +8.5% (EUR 10,138.9 M) and Procurements +9.0% (EUR 5,815.8 M) 16
Slide 17: Net Operating Expenses / Group
Net Operating Expenses / Group Net Operating Expenses up +8.1%, to EUR 1,081.3 M, affected by fx and AGM attendance premium (paid in Q1’19 vs Q2’18) EUR M Net Operating Expenses Q1 2018 Q1 2019 vs Q1 2018 (%) vs Q1 2018 (%) (ex fx and AGM premium) Net Personnel Expenses -522.6 -553.4 +5.9% +4.2% Net
Slide 18: Levies / Group
Levies / Group Levies fall -6.2%, to EUR 642.5 M, as a consequence of… +67 -17 -8 -642.5 -684.9 Spanish taxes on Q1 2018 US Networks Fx and other Q1 2019 generation … lower taxes in Spain, due to lower hydro production and the suspension of 7% generation tax in Q1 2019, in effect again from April 20
Slide 19: Results by Business / Networks
Results by Business / Networks Networks EBITDA up +9.9%, to EUR 1,318.4 M, … EBITDA by Geography (%) Key Figures (EUR M) Brazil 21% Q1 2018 Q1 2019 vs Q1 2018 Gross Margin 1,975.3 2,165.1 +189.8 (+9.6%) 33% Spain 1,318.4 Net Op. Exp. -503.1 -536.6 -33.5 (+6.7%) 27% Levies -272.1 -310.1 -38.0 (+14.0%
Slide 20: Results by Business / Networks
Results by Business / Networks Spain EBITDA EUR 436.8 M (EUR +11.4 M; +2.7%), due to CNMC adjustments US EBITDA USD 398.7 M (USD 0.3 M; +0.1%), due to: + Higher contribution from rate plans - Tariff adjustments corresponding to tax reform, in effect under IFRS from Q3’18, compensated by lower taxes.
Slide 21: Results by Business / Renewables
Results by Business / Renewables Renewables EBITDA up +13.3%, to EUR 683.6 M, … EBITDA by Geography (%) Key Figures (EUR M) RoW Q1 2018 Q1 2019 vs Q1 2018 16% Mexico Gross Margin 944.5 1,006.8 +62.3 (+6.6%) 4% 32% Spain Net Op. Exp. -180.8 -197.1 -16.3 (+9.0%) Brazil 5% 683.6 Levies -160.3 -126.1 +3
Slide 22: Results by Business / Renewables
Results by Business / Renewables Spain EBITDA EUR 218.9 M (EUR -23.2 M; -9.6%), as a consequence of lower output (-22.8%), driven by hydro (-24.2%) and wind (-23.0%), partially compensated by lower taxes UK EBITDA GBP 165.9 M (GBP +38.2 M; +29.9%), higher onshore output (+3.7%) and better prices mor
Slide 23: Results by Business / Generation and Supply
Results by Business / Generation and Supply Generation & Supply EBITDA up +19.2% to EUR 600.5 M, … EBITDA by Geography (%) Key Figures (EUR M) RoW Q1 2018 Q1 2019 vs Q1 2018 Brazil 2% -2% Gross Margin 1,079.4 1,157.8 +78.4 (+7.3%) 27% 65% Spain Net Op. Exp. -325.7 -344.8 -19.1 (+5.9%) Mexico 600.5 L
Slide 24: Results by Business / Generation and Supply
Results by Business / Generation and Supply Spain EBITDA EUR 389.5 M (EUR +157.6 M; +67.9%) • Higher production: 8,863 GWh (+10.5%) • Revenues increase • Levies decrease as a consequence of suspension of 7% generation tax Mexico EBITDA USD 184.9 M (USD +65.4 M; +54.7%): Higher Sales driven by produc
Slide 25: EBIT / Group
EBIT / Group Group EBIT up +17.7%, to EUR 1,632.2 M EUR M EBIT D&A and Provisions Q1 2018 Q1 2019 vs Q1 2018 (%) +17.7% D&A -871.1 -897.7 +3.1% Provisions -65.2 -69.4 +6.4% 1,632.2 1,387.2 TOTAL -936.3 -967.1 +3.3% Q1 2018 Q1 2019 D&A and Provisions up 3.3% due to higher activity and IFRS 16 impact,
Slide 26: Net Financial Expenses / Group
Net Financial Expenses / Group Net Financial Expenses up EUR 9.7 M, to EUR 298.3 M … Net Financial Exp. evolution (EUR M) Cost of Debt - 288.6 + 10.0 - 9.4 - 10.3 - 298.3 3.59% 3.47% Mar-18 Cost Avg debt Non-debt Mar-19 Mar-18 Mar-19 26
Slide 27: Net Debt / Group
Net Debt / Group Credit metrics remain robust Pro forma adjusted credit metrics* Net Debt* (EUR M) Mar-18** Mar-19 35,559 Net Debt / EBITDA 3.98x 3.69x 33,131 FFO / Net Debt 21.4% 21.1% RCF / Net Debt 19.0% 19.7% Leverage 43.6% 43.7% Mar-18 Mar-19 Net Debt grows due to IFRS 16 (EUR 408 M), fx (EUR 9
Slide 28: Net Profit / Group
Net Profit / Group Profit Before Tax grows +21.5% with no relevant Non Recurring Results in the quarter, and Reported Net Profit up +15%, to EUR 963.9 M, as … EUR M Q1 2018 vs Q1 2018 (%) Q1 2019 PBT 1,099.7 1,335.9 +21.5% - Corporate Tax -175.4 -277.7 +58.3% - Minorities -86.3 -94.3 +9.2% Reported
Slide 29: Conclusions
Agenda Conclusions @ IBERDROLA /www.ibercrola.com ResulisRccabion/rtGumniaap (
Slide 30: Outlook 2019
Outlook 2019 Generation Networks Renewables & Supply More REGULATED assets …More CAPACITY with HIGHER tariffs… (+13% more production on annual basis)… …maintaining …with Further FINANCIAL STRENGTH EFFICIENCY gains… non-core divestments and sale of minority stakes… …moving from mid to high single-dig
Slide 31: Annex: Iberdrola Retribución Flexible program July 2019
Agenda Annex: “Iberdrola Retribución Flexible” program July 2019 31
Slide 32: Iberdrola Retribución Flexible program July 2019
“Iberdrola Retribución Flexible” program July 2019 Closing prices considered for - Last day to buy IBE shares determining the and participate in average price used to Last day of rights “Iberdrola Retribución calculate number of trading period - Delivery of shares Flexible” program rights and final