Edp S.a. · EURONEXT:EDP

Edp — Energias de Portugal — Q1 2012 Earnings Presentation

25 slides from Edp's earnings presentation, May 11, 2012

  1. Slide 1: Results Presentation 1Q12

    Results Presentation 1Q12 LISBON, MAY 11th, 2012 0

  2. Slide 2: Disclaimer

    Disclamer This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") solely for use at the presentation to be made on the 11th of May 2012 and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this pr

  3. Slide 3: 1Q12: Highlights of the period

    1Q12: Highlights of the period EBITDA: €1,003m, -0.5% International operations: 61% weight of EBITDA in 1Q12 Growth in wind power (EBITDA +20%) compensated lower margins in liberalised activities Iberia (EBITDA -22%) and Brazil (EBITDA -10% driven by distribution) Average cost of debt of 4.1% in 1Q1

  4. Slide 4: 1Q12: Highlights of the period

    1Q12: Highlights of the period Capex of €325m, 17% lower YoY: slowdown in capacity additions in wind power Regulatory receivables Iberia: +€0.2bn in 1Q12 to €1.9bn by Mar-12 Impacted by extreme dry weather in 1Q12 and tariff deficit defined by the regulator in Portugal for 2012 Net debt flat QoQ at

  5. Slide 5: Electricity & Gas Demand in EDP's Key Markets

    Electricity & Gas Demand in EDP’s Key Markets Brazil (Southeast) Iberian Market % Weight in Iberia in 1Q12 Electricity Electricity Demand Gas Demand 1Q12 vs. 1Q11 (YoY) 100% 16% 84% 100% 12% 88% +1.1% Iberian Iberian Market Portugal Spain Market Portugal Spain -1.6% -1.0% -2.4% -1.4% -7.8% -3.7% Bra

  6. Slide 6: 1Q12 Operating Headlines

    1Q12 Operating Headlines Installed Capacity 1Q12 Generation Breakdown by Technology (GW) (%) (1) Wind Hydro CCGT Other +5% CCGT Other (1) 22.2 23.2 6% 21% 22% 16% 33% 17% 34% 32% 31% 26% 63% Hydro & Wind 30% 31% 60% Hydro & Wind 1Q11 1Q12 Installed capacity +1.0GW: +0.5GW wind, +0.5GW hydro Wind & H

  7. Slide 7: 1Q12 EBITDA: Increasing portfolio diversification

    1Q12 EBITDA: Increasing portfolio diversification EBITDA Breakdown by Geography: 1Q12 vs. 1Q11 EBITDA Breakdown by Geography: 1Q12 vs. 1Q11 (%) (%) ∆ % 1Q11-12 1Q11 1Q12 Var. % Var. Abs. Brazil 20% -10% 18% EDP Brasil 198 177 -10% -21 EDP Renov. 22% +20% 26% HC Energia 192 173 -10% -19 EDP Renovávei

  8. Slide 8: EBITDA 1Q12: 91% from LT Contracted and Regulated activities

    EBITDA 1Q12: 91% from LT Contracted Activities and Regulated activities EBITDA Breakdown by Activity (€ million) % Chg. YoY -0.5% €1,008m €1,003m Liberalized 12% -22% 9% Activities Iberia -10% 18% Brazil 20% Wind Power 22% +20% 26% 91% Regulated Networks 26% +2% 27% Iberia(1) LT Contracted 20% -3% 2

  9. Slide 9: Operating costs: Efficiency improvements with Opex/Gross Profit at 26%

    Operating costs: Efficiency improvements with Opex/Gross Profit(2) at 26% in 1Q12 Operating costs (1) : 1Q12 vs. 1Q11 1Q12 YoY Inflation: (€m) (%) Brazil EDPR Iberia +6% 365 386 82 +18% 70 6.8% 67 71 +6% 3.6% 2.8% 228 232 +2% (3) 1Q11 1Q12 Portugal Spain Brazil (IGP-M) Iberia: Operating costs +2%, b

  10. Slide 10: Capex: Execution of Selective Growth

    Capex: Execution of Selective Growth Consolidated Capex by technology(1) (€ million) -17% €393m EDP Brasil 31 Hydro Portugal 42 (2) €325m 56 (2) Wind Power 190 78 55 Maintenance 129 136 1Q11 1Q12 Capex -17% YoY, following capex cuts in wind Wind + Hydro + Brazil represent 100% of expansion capex in

  11. Slide 11: Net Regulatory Receivables by Mar-12

    Net Regulatory Receivables by Mar-12 Regulatory Receivables (€ million) Regulatory Receivables Portugal(1): €1,526m (+€396m vs. Dec-11) +€227m Last resort supply & distribution €1,041m (+€321m vs. Dec-11); 1,875 (a) +€243m in 1Q12 due to tariff deficit defined by the regulator for 1,647 2012 to be r

  12. Slide 12: Net Debt Profile

    Net Debt Profile EDP consolidated debt maturity profile EDP gross debt breakdown Debt by Currency (€ million) (%) (%) Commercial paper Short term PLN Other subsidiaries(1) Medium/Long Term USD 1% EDP SA + BV 19% Brazil: € 137 M Avg. Debt Maturity Project Finance: €136 M Mar-12: 4.2 years 8% BRL 72%

  13. Slide 13: Financial Liquidity position

    Financial Liquidity position (€ million) Sources of liquidity (Mar-12) Maximum Number of Instrument Utilised Available Maturity Amount counterparties Revolving Credit Facility 2,000 21 500 1,500 03-11-2015 Domestic Credit Lines 190 10 39 151 Renewable Underwritten CP Programmes 650 3 0 650 Renewable

  14. Slide 14: Main sources and uses of funds

    Main sources and uses of funds Sources of funds Use of funds Refinancing needs in 2012: Bond maturing in Jun-12: €0.5bn Cash & Equivalents (Mar-12): €1.9bn Bond maturing in Aug-12: €0.35bn Available Credit Lines (Mar-12): €2.3bn Bond maturing in Nov-12: €0.8bn Loans maturing in 2012: €0.4bn Total: €

  15. Slide 15: Net Profit down 2% YoY

    Net Profit down 2% YoY (€ million) 1Q11 1Q12 ∆% ∆ Abs. Impact from longer useful life in wind farms EBITDA 1,008 1,003 -0% -5 (from 20 to 25 years), partially compensated by new capacity (wind and hydro) Net Depreciations and 360 353 -2% -7 Provisions Cost of debt: 4.1% in 1Q12 vs. 3.8% in 1Q11; EBI

  16. Slide 16: Business Areas

    F ody Business Areas _a

  17. Slide 17: Long Term Contracted Generation Iberia (20% of EBITDA)

    Long Term Contracted Generation Iberia (20% of EBITDA) EBITDA LT Contracted Generation Portugal hydro coeficient (€ million) (1.0 = avg. year) PPA/CMEC Special regime -3% -83% 203 197 -39% 1.15 +2% 0.19 1Q11 1Q12 1Q11 1Q12 PPA/CMEC: higher inflation (+€6m), higher availability rates and commissionin

  18. Slide 18: Liberalised Energy Activities Iberia (9% EBITDA)

    Liberalised Energy Activities Iberia (9% EBITDA) EDP Liberalised Power Plants Iberia – Production EDP vs. Spain – Load factors in 1Q11 and 1Q12 (TWh) (%) 1Q11 1Q12 -21% 58 4.5 3.5 Nuclear 7% 9% Hydro 17% 11% Coal 33 23% 29 52% CCGT 52% 12 27% 1Q11 1Q12 Coal CCGT Lower production due to lower utilisa

  19. Slide 19: Liberalised Energy Activities Iberia (9% EBITDA)

    Liberalised Energy Activities Iberia (9% EBITDA) EBITDA Liberalised Activities in Iberian Market (€ million) -22% 120 95 1Q11 1Q12 Avg. Selling price(1) (€/MWh) 54.4 +14% 62.1 Avg. Sourcing cost (€/MWh) 44.0 +20% 52.7 Avg. Unit margin(2) (€/MWh) 10.9 -19% 8.8 Volumes sold 12.8 -8% 11.8 22% decline i

  20. Slide 20: Regulated Energy Networks Iberia (27% of EBITDA)

    Regulated Energy Networks Iberia (27% of EBITDA) EBITDA Adjusted EBITDA (1) (€ million) (€ million) Gas Iberia Gas Iberia Electricity Spain Electricity Spain Electricity Portugal Electricity Portugal -0% +5% 275 275 262 275 +4% +4% -53% -20% +23% +11% 1Q11 1Q12 1Q11 1Q12 Electricity Portugal: Recurr

  21. Slide 21: Regulated Energy Networks Iberia: Higher efficiency with improvement on quality of service

    Regulated Energy Networks Iberia: Higher efficiency with improvement on quality of service Opex(1)/Network Km Opex(1)/Connected customers Equivalent Interruption Time(2) (€th) (€) (minutes) -2% -1% -60% 2.36 2,31 21 75.5 74.8 8 1Q11 1Q12 1Q11 1Q12 1Q11 1Q12 Key efficiency ratios still improving High

  22. Slide 22: EDP Renováveis (26% of EBITDA): Strong growth driven by new installed capacity

    EDP Renováveis (26% of EBITDA): Strong growth driven by new installed capacity Installed Capacity EBITDA (MW) (€ million) 1Q12 7.157 1Q12 263 YoY % Chg + 8% YoY % Chg + 20% 1% 1% 12% 16% 9% 39% 10% 48% 31% 34% Installed Capacity +0.5GW: US (+0.2GW), Rest of Europe (+0.2GW) and Brazil (+0.1GW) EBITDA

  23. Slide 23: Brazil (18% of EBITDA)

    Brazil (18% of EBITDA) EDP Brasil EBITDA (BRL million) Generation & Other Distribution -9% 452 411 +29% -34% 1Q11 1Q12 EBITDA -9% YoY in local currency, -10% in Euro terms (BRL depreciated 2% vs. EUR) Distribution: EBITDA -34% YoY penalised by (1) annual tariff deviations (-R$48m in 1Q12 vs. +R$17m

  24. Slide 24: A resilient business model in a challenging environment

    A resilient business model in a challenging environment EBITDA: -0.5% (operations out of Portugal represented c60% of EBITDA) Sound Operating Cost of debt: 4.1% in 1Q12 Performance Net Profit/EPS: -1.5% Total Installed capacity by Mar-12: +5% YoY (wind power capacity +8%) Growth Selective Growth: Ca

  25. Slide 25: IR Contacts

    IR Contacts Miguel Viana, Head of IR Sónia Pimpão Elisabete Ferreira Ricardo Farinha Pedro Coelhas Noélia Rocha E-mail: ir@edp.pt Phone: +351 210012834 Visit EDP Website Next Events Site: www.edp.pt May 22nd-23rd – EDP Investor Day, Oporto, Portugal Link Results & Presentations: http://www.edp.pt/ED

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