Slide 1: 2009 Results Presentation
EDP 2009 Results Presentation March 5th, 2010
Slide 2: 2009: Highlights of the period
2009: 2009: Highlights of the period EBITDA: €3,363m, +7% YoY Liberalized activities EBITDA +61% YoY: Successful hedging strategy Higher sales to clients; Portfolio optimisation based on the flexibility of our generation fleet Installed capacity: +11% YoY backed by 25% increase in wind 60% of EDP in
Slide 3: 2009: Highlights of the period
2009: 2009: Highlights of the period Net Profit: €1,024m, -6% YoY; Net Profit: +11% YoY adjusted for non-recurrent items in 2008 Net interest costs down 33% YoY Average cost of debt fell from 5.6% in 2008 to 4.0% in 2009 Comfortable liquidity position €4.6bn of cash and liquidity facilities availabl
Slide 4: 2009 Financial Headlines
2009 Financial Headlines (€ million) 2008 2009 % Chg. EBITDA 3,155 3,363 +7% Net Profit 1,092 1,024 -6% Adjusted Net Profit 925 1,024 +11% Capex 3,618 3,235 -11% Net Debt (€bn) 13.9 14.0 +1% Net Debt / EBITDA (x) 4.4x 4.2x - Adjusted Net Debt (1) / EBITDA (x) 3.8x 3.9x - Net profit ex-non recurrent
Slide 5: 2009 EBITDA Breakdown
2009 EBITDA Breakdown 81% of 2009 EBITDA came from regulated and LT contracted activities +7% % Chg. YoY €3,155m €3,363m Liberalized 12% Activities Iberia 19% Brazil 18% 16% 14% Wind Power 16% Regulated 30% 81% 25% Networks Iberia LT Contracted 27% 24% Generation Iberia 2008 2009 Specialization acco
Slide 6: EBITDA excluding non recurrent items: +13%
EBITDA excluding non recurrent items: +13% EDP Group (€ million) 2008 2009 % Chg. Reported EBITDA 3,155 3,363 +7% Portugal Distribution Tariff Adjust. (1) -195 -15 - Brazil Distribution Tariff Adjust. (1) -23 -26 - HR Restructuring Costs 49 40 - Adjusted EBITDA 2,986 3,361 +13% +16% 13% EBITDA growt
Slide 7: EDP Consolidated operating costs: Positive results from efficiency program
EDP Consolidated operating costs: Positive results from ongoing corporate- corporate-wide efficiency program Controllable Operating Costs (1) – EDP Group Efficiency Program 2008-12 annual savings (2) (€ million) (€ million) % Chg. YoY Human Resources Supplies and services ~0% 160 1,421 1,427 EDP Ren
Slide 8: Business Areas
Business Areas 7
Slide 9: Long Term Contracted Generation Iberia: PPA/CMECs
Long Term Contracted Generation Iberia (24% of EBITDA): PPA/CMECs PPA/CMECs with stable Return on Assets of 8.5% EBITDA Reported EBITDA adjusted (2) (€ million) (€ million) PPA/CMEC Special regime (1) +5% -2% 847 888 849 832 2008 2009 2008 2009 (-) Fuel procurement: -€44m YoY (hedged) (+) Desox inve
Slide 10: Liberalised Energy Activities Iberia
Liberalised Energy Activities Iberia (19% EBITDA) EBITDA Liberalised Activities (€ million) +61% 633 396 393 2007 2008 2009 Avg. Selling price(1) (€/MWh) 65.6 -6.1% 61.6 Avg. Pool cost (€/MWh) 69.2 -45% 38.3 Avg. Gener. cost (€/MWh) 41.6 -22% 32.5 EBITDA growth driven by growth of sales to clients a
Slide 11: Liberalised Electricity & Gas Supply in Portugal & Spain
Liberalised Electricity & Gas Supply in Portugal & Spain Gas Supply in Iberia – EBITDA Electricity Liberalized Supply – Portugal & Spain (€ million) Volume Sold (GWh) # Clients (‘000) Portugal Spain +61% +150% +63% 59,1 21.0 787 36,7 12.9 314 2008 2009 2008 2009 2008 2009 • Growth prompted by libera
Slide 12: Liberalised Power Plants Iberia: A Portfolio with flexibility
Liberalised Power Plants Iberia: A Portfolio with flexibility EDP Liberalised Power Plants Iberia – Production EDP vs. Spain – Load factors in 2009 (TWh) (%) -11% EDP (liberalised) Spain’s average 20.4 18.2 Nuclear 6% 6% 46 Hydro 7% 8% 43 40 Coal 32% 32% 34 CCGT 55% 53% 2008 2009 Coal CCGT • Lower o
Slide 13: Regulated Energy Networks Iberia
Regulated Energy Networks Iberia (25% of EBITDA) Reported EBITDA Adjusted EBITDA (1) (€ million) (€ million) Gas Iberia % Chg. YoY Electricity Spain Electricity Portugal -9% +10% 942 852 835 762 2008 2009 2008 2009 Regulated revenues increased 5% YoY Controllable operating costs (supplies & services
Slide 14: Regulated Energy Networks Iberia: Demand and efficiency
Regulated Energy Networks Iberia: Demand with low impact on regulated revenues, efficiency improvements Energy Distributed in Regulated Networks Electricity Distribution: Efficiency Ratios (TWh) (€) Electricity Portugal Gas Spain Opex(2)/Km Network Opex(2)/Client Connected Residential demand & other
Slide 15: EDP Renováveis
EDP Renováveis (16% of EBITDA) Installed Capacity Output Average Selling Prices (Gross MW) (GWh) Europe (€/MWh) USA ($/MWh) +40% +23% 10,907 -11% 6,227 7,807 -2% 5,052 98 87 49 48 2008 2009 2008 2009 2008 2009 2008 2009 EBITDA +24% YoY: • Installed capacity to 6,227 Gross MWs (3rd largest world oper
Slide 16: Wind power prices
Wind power prices Production Breakdown Avg. Selling Price per MWh 10,907 GWh 2009 2008 % Feed-in Stable tariffs, Inflation updated. 16% €93 €89 +4% tariff 82% hedged or protected by Market + Premium €84 €101 -17% floor price 30% + Hedging 18% sold @ pool+premium 4 new PPAs closed at prices above por
Slide 17: Brazil
Brazil (16% of EBITDA) Evolution of Quarterly EBITDA of EDP Brasil Evolution of Annual EBITDA of EDP Brasil (€ millions) (€ millions) +51% -2% 163 562 550 108 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 2008 2009 • 4Q08 and 1H09 penalised by decline in the energy consumption and currency depreciation •
Slide 18: Brazil: Evolution of energy demand and BRL/EUR in 2009
Brazil: Evolution of energy demand and BRL/EUR in 2009 Electricity Distributed (TWh) BRL/EUR: Year-to-Date Bandeirante & Escelsa Concession Areas Average in the year Average in the 4Q -4% 3,40 22.2 3,20 21.3 +7% 2.90 3,00 2.77 5.8 2.68 5.4 2,80 2.60 2,60 2,40 2,20 2008 2009 4Q08 4Q09 Jan-08 Abr-08 J
Slide 19: Consolidated Financials
Consolidated Financials 18
Slide 20: Consolidated Capex 2009: 79% in expansion
Consolidated Capex 2009: 79% in expansion; 83% of expansion capex was wind and hydro power €3,235m Brazil Wind Power: €1,690m (1) 4% CCGT Iberia 9% • 40% in US, 33% in Spain, 27% in RoEurope • 73% on projects concluded and 27% on projects Hydro Portugal 13% Expansion ongoing Capex €2,556m Hydro Powe
Slide 21: Net Regulatory Receivables by Dec-09
Net Regulatory Receivables by Dec- Dec-09 €596m Regulatory Receivables from CMECs: €585m • €395m created in 2009 (low hydro production and low electricity prices). Portugal • c€286m expected to be recovered during 2010, remaining in 2011. CMECs Spanish Tariff Deficit: €501m Brazil • c€330m included
Slide 22: EDP Consolidated Net Debt
EDP Consolidated Net Debt Debt by Interest Rate Term Debt by Currency Debt by Source of Funds Fixed USD Banks 20% 50% BRL 8% 46% 54% 50% 72% Capital Floating EUR Market 2008 2009 Rating Last Rating Action Net Debt/EBITDA 4.4x 4.2x Standard & Poors A-/Negative/A2 04/08/2009 Moody’s A3/Stable/P2 09/06
Slide 23: EDP consolidated debt maturity profile
EDP consolidated debt maturity profile EDP consolidated debt maturity profile (December 31, 2009) (€ million) Commercial paper Brazil: € 298 M Other companies Average Debt Maturity Project Finance: € 87 M EDP SA + BV Dec-09: 5 years €0.5bn Bond: Jun-10 3.500 19% €0.7bn Bond: Mar-11 3.000 16% 15% 14%
Slide 24: EDP main sources and uses of funds in 2009-2011
EDP main sources and uses of funds in 2009- 2009-2011 Sources of funds Use of funds • Refinancing needs in the bond market 2010-2011: • Cash & Equivalents (Dec-09): €2.3bn • Available Credit Lines (Dec-09): €2.3bn Bond issue maturing in Jun-10: €0.5bn Bond issue maturing in Mar-11: €0.7bn Total: €4.
Slide 25: Recurrent Net Profit up 11% YoY
Recurrent Net Profit up 11% YoY (€ million) 2008 2009 ∆% ∆ Abs. EBITDA 3,155 3,363 +7% +208 11% Increase of Installed Capacity Net depreciations & (1,225) (1,393) +14% -168 provisions Avg. cost of debt: EBIT 1,930 1,970 +2% +40 down from 5.6% in 2008 to 4.0% in 2009 Net Interest Costs (722) (481) -3
Slide 26: Prospects 2010
Prospects 2010 25
Slide 27: Energy Demand Iberia: Recent performance and prospects
Energy Demand Iberia: Recent performance and prospects PORTUGAL – Electricity SPAIN – Electricity SPAIN – Gas Total Market YoY Change YoY Change YoY Change 7,3% 4,3% 3,6% 2,7% 2,0% -1,1% -1,4% -1,3% -3,6% -4,5% -5,7% -5,7% -10,5% 1Q09 2009 4Q09 Jan/Feb 2010 Jan/Feb 2010 - Adj.(1) -17,2% • Signs of r
Slide 28: Electricity market Prices in MIBEL
Electricity market Prices in MIBEL MIBEL Pool Prices (1) (€/MWh) Avg. OMEL Portugal 28.7 Avg. OMEL Spain 29.4 39,9 37,8 35,7 33,0 15.6 6.7 14.3 6.3 1-Jan-10 15-Jan-10 29-Jan-10 12-Fev-10 2Q10 3Q10 4Q10 2011 OMEL (Spot Prices) OMIP Spain (Forward Prices) • Increase of hydro (+35%) and wind (+68%) out
Slide 29: Liberalized activities: Outlook for 2010 & 2011
Liberalized activities: Outlook for 2010 & 2011 EDP: Electricity forward contracting - 2010 EDP: Electricity forward contracting – 2011 (%) (%) Hydro 6% 6% Nuclear 100% Not Coal 28% contracted Contracted with clients 100% >35% CCGT 60% Contracted Expected output Sales Expected output Sales • Contrac
Slide 30: Prospects for 2010 EBITDA
Prospects for 2010 EBITDA: ~100% of expected output sold forward; Thermal spreads ~€10/MWh Liberalized 12% Room for optimisation: own generation or purchases in the pool Activities Iberia Room to grow volumes of electricity and gas supplied to liberalized clients Brazil 18% BRL/EUR: 19% YoY apprecia
Slide 31: Conclusion: Excellent results in a very challenging environment
Conclusion: Excellent results in a very challenging environment Improvement of • Hedging business model in Iberia proved its success; higher efficiency returns • Reported EBITDA +7%; EBITDA ex-non recurrent +13% • Net interest costs: -33% (cost of debt down from 5.6% to 4.0%) • Adjusted Net Profit:
Slide 32: Annex
Annex 31
Slide 33: Liquidity: Financing cash needs two years in advance
Liquidity: Financing cash needs two years in advance €1bn 5 Year Bond – Feb-09: • Oversubscribed with well diversified investor pool €1.6bn 3 Year Revolving Credit Facility – Mar-09: • EDP signed a new 3-year RCF, replacing the RCF due in Jun-09 • Club deal with 19 national and international banks w
Slide 34: EDP liquidity position Dec-09
EDP liquidity position Dec- Dec-09 (€ million) Sources of liquidity (Dec-09) Instrument Maximum Number of Utilised Available Maturity Amount counterparties Revolving Credit Facility (US$1.5bn) 1,041 22 1,041 - 02-07-2014 Revolving Credit Facility 1,600 19 - 1,600 04-03-2012 Domestic Credit Lines 375
Slide 35: IR Contacts
IR Contacts Miguel Viana, Head of IR Sónia Pimpão Elisabete Ferreira Ricardo Nuno Farinha Rui Freitas Noélia Rocha E-mail: ir@edp.pt Phone: +351 210012834 Fax: +351 210012899 Visit EDP Website Next Events London - EEI Conference/Citi: March, 15th-16th Site: www.edp.pt Paris - Cheuvreux Conference: M