Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — H1 2012 Earnings Presentation
30 slides from Edp's earnings presentation, Jul 27, 2012
Slide 1: Results Presentation 1H12
Results Presentation 1H12 LISBON, July 27th, 2012 0
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 27th of July 2012 and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this p
Slide 3: 1H12: Highlights of the period
1H12: Highlights of the period EBITDA: €1,885m, -0.8% YoY International operations: 60% weight of EBITDA in 1H12 Growth in wind power (EBITDA +23%), decrease in Brazil (EBITDA -24% driven by deviations in distribution) Slight decline in Iberian traditional operations (EBITDA -1%) Opex: +4.5% (includ
Slide 4: 1H12: Highlights of the period
1H12: Highlights of the period Capex of €690m, down 18% YoY: slowdown in wind power capacity additions Regulatory receivables Iberia: +€0.7bn in 1H12 to €2.3bn by Jun-12 Impacted by extreme dry weather in 1H12 and tariff deficit defined by the regulator in Portugal for 2012 Net debt at €18.0bn impac
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 1H12 Electricity Electricity Demand Gas Demand 1H12 vs. 1H11 (YoY)(1) 100% 16% 84% 100% 12% 88% +2.0% Iberian Iberian Market Portugal Spain Market Portugal Spain -1.8% -0.5% -3.9% -1.0% -17.6% -3.3%
Slide 6: 1H12 Operating Headlines
1H12 Operating Headlines Installed Capacity 1H12 Generation Breakdown by Technology (GW) (%) (1) Wind Hydro CCGT Other +0% CCGT 22.5 22.5 5% Other (1) 19% 22% 17% 32% 17% 36% 33% 31% 27% 65% Hydro & Wind 31% 32% 62% Hydro & Wind 1H11 1H12 Installed capacity flat YoY: +0.4GW new hydro; +0.3GW new win
Slide 7: 1H12 EBITDA: Increasing portfolio diversification
1H12 EBITDA: Increasing portfolio diversification EBITDA Breakdown by Geography: 1H12 vs. 1H11 EBITDA Breakdown by Geography: 1H12 vs. 1H11 (%) (%) ∆ % 1H11-12 1H11 1H12 Var. % Var. Abs. 21% -24% 16% Brazil EDP Brasil 392 298 -24% -95 EDP Renov. 22% +23% 27% HC Energia 349 330 -5% -18 Spain 18% -5%
Slide 8: EBITDA 1H12: 90% from LT Contracted and Regulated activities
EBITDA 1H12: 90% from LT Contracted Activities and Regulated activities EBITDA Breakdown by Activity (€ million) % Chg. YoY -0.8% €1,900m €1,885m Liberalized 10% -5% 10% Activities Iberia 21% -24% 16% Brazil Wind Power 22% +23% 27% 90% Regulated 26% +1% 26% Networks Iberia(1) LT Contracted 22% -2% 2
Slide 9: Operating costs: Efficiency improvements with Opex/Gross Profit at 27%
Operating costs: Efficiency improvements with Opex/Gross Profit(2) at 27% in 1H12 Operating costs (1) : 1H12 vs. 1H11 1H12 YoY Inflation (€ million) (%) Brazil EDPR Iberia +4.5% 742 776 140 151 +7% 133 149 +12% 5.5% 3.3% 2.4% 468 476 +2% (3) 1H11 1H12 Portugal Spain Brazil (IGP-M) Iberia: Operating
Slide 10: Capex: Execution of Selective Growth
Capex: Execution of Selective Growth Consolidated Capex Breakdown(1) (€ million) -18% €845m EDP Brasil 57 €690m Hydro Portugal 133(2) 115 (2) Wind Power 345 178 109 Maintenance 310 288 1H11 1H12 Capex down 18% YoY, following capex cuts in wind Wind + Hydro + Brazil represent 100% of expansion capex
Slide 11: Net Regulatory Receivables by Jun-12
Net Regulatory Receivables by Jun-12 Regulatory Receivables (€ million) Regulatory Receivables Portugal(1): €1,803m (+€673m vs. Dec-11) Last resort supply & distribution €1,280m (+€541m vs. Dec-11); +€663m 2,311 (a) +€486m in 1H12 in line with tariff deficit defined by the regulator for 2012 to be r
Slide 12: Change in Net debt
Change in Net debt Change in Net Debt: Dec-11 vs. Jun-12 (€ billion) Regulatory Regulatory Receivables Receivables 0.7 18.0 16.9 1.1 0.8 0.7 2.3 1.6 15.3 15.7 Net Debt Free Cash Flow (1) Regulatory Expansion Capex & Fin. Dividends Paid Net Debt Dec-11 Receivables Investments (2) Jun-12 Higher net de
Slide 13: Net Debt Profile
Net Debt Profile EDP consolidated debt maturity profile Debt by Currency (€ billion) (%) Commercial paper PLN Other subsidiaries(1) Avg. Debt Maturity USD 1% EDP SA + BV Jun-12: 4.1 years Brazil: €72M 19% Project Finance: €69M 8% BRL 3.5 72% 3.0 EUR 2.5 2.0 Debt by Interest Rate Term (%) 1.5 1.0 0.5
Slide 14: Financial Liquidity position
Financial Liquidity position (€ million) Sources of liquidity (Jun-12) Maximum Number of Instrument Utilised Available Maturity Amount counterparties Revolving Credit Facility 2,000 21 1,300 700 03-11-2015 Domestic Credit Lines 183 8 27 156 Renewable Underwritten CP Programmes 650 3 0 650 Renewable
Slide 15: Main sources and uses of funds
Main sources and uses of funds Sources of funds Use of funds Refinancing needs in 2H12: Cash & Equivalents (Jun-12): €1.4bn Bond maturing in Aug-12: €0.35bn Available Credit Lines (Jun-12): €1.5bn Bond maturing in Nov-12: €0.8bn CDB 5-Year loan (Jul-12): €1.0bn Loans maturing in 2012: €0.3bn TOTAL €
Slide 16: Net Profit breakdown
Net Profit breakdown (€ million) 1H11 1H12 ∆% ∆ Abs. Combined impact from increase of wind farms’ EBITDA 1.900 1.885 -1% -15 accounting useful life (from 20 to 25 years) and new capacity in operation (wind and hydro) Net Depreciations and 725 711 -2% -14 Provisions Cost of debt: 4.0% in 1H12 vs. 3.9
Slide 17: Business Areas
Business Areas
Slide 18: Long Term Contracted Generation Iberia (21% of EBITDA)
Long Term Contracted Generation Iberia (21% of EBITDA) EBITDA LT Contracted Generation Portugal hydro coefficient (€ million) (1.0 = avg. year) PPA/CMEC Special regime -2% -68% 413 402 -35% 1.03 0.33 +1% 1H11 1H12 1H11 1H12 PPA/CMEC: recurrent depreciation of asset base offsets higher inflation, hig
Slide 19: Liberalised Energy Activities Iberia (10% EBITDA)
Liberalised Energy Activities Iberia (10% EBITDA) EDP Liberalised Power Plants Iberia – Production EDP vs. Spain – Load factors in 1H11 and 1H12 (TWh) (%) 1H11 1H12 -22% 8.0 6.2 49 Nuclear 7% 9% Hydro 14% 17% 33 Coal 26% 26 50% CCGT 53% 9 24% Coal CCGT 1H11 1H12 Lower production due to low utilisati
Slide 20: Liberalised Energy Activities Iberia (10% EBITDA)
Liberalised Energy Activities Iberia (10% EBITDA) EBITDA Liberalised Activities in Iberian Market (€ million) -5% 192 182 1H11 1H12 Avg. Selling price(1) (€/MWh) 55.0 +11% 61.0 Avg. Sourcing cost (€/MWh) 46.1 +9% 50.2 Avg. Unit margin(2) (€/MWh) 9.4 +2.7% 9.6 Volumes sold 24.5 -8% 22.4 5% decline in
Slide 21: Regulated Energy Networks Iberia (26% of EBITDA)
Regulated Energy Networks Iberia (26% of EBITDA) EBITDA Adjusted EBITDA (1) (€ million) (€ million) Gas Iberia Gas Iberia Electricity Spain Electricity Spain Electricity Portugal Electricity Portugal -0.8% +2.9% 524 520 506 520 -0.4% -0.4% -37% -13% +11% +8% 1H11 1H12 1H11 1H12 Electricity Portugal:
Slide 22: Regulated Energy Networks Iberia: Higher efficiency
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) -3% -2% -46% 2.38 76.2 38 2.31 74.6 21 1H11 1H12 1H11 1H12 1H11 1H12 Improvement of Key efficiency Ratios in n
Slide 23: Portugal: Control over clients bad debts
Portugal: Control over clients bad debts Average collecting period Overdue debt from clients (1) (Days) (€ million; %) Overdue Debt from Clients Seasonally always higher in Mar; Overdue Debt from Clients/Annual Sales 4% avg. Tariff increase in Jan-12 32 32 32 31 32 266 28 28 254 29 29 229 233 222 22
Slide 24: EDP Renováveis (27% of EBITDA)
EDP Renováveis (27% of EBITDA): Strong growth driven by new installed capacity Installed Capacity EBITDA (MW) (€ million) 1H12 7.169 1H12 504 YoY % Chg + 4% YoY % Chg + 23% 1% 1% 12% 14% 9% 37% 12% 48% 31% 35% Installed Capacity +282MW: US (+144MW) and Rest of Europe (+138MW) EBITDA +€94m: driven by
Slide 25: Brazil (16% of EBITDA)
Brazil (16% of EBITDA) EDP Brasil EBITDA (EUR million) Generation & Other Distribution -24% 392 298 -52% +15% 1H11 1H12 Forex: -€16m impact due to BRL 5% depreciation versus EUR; EBITDA in local currency fell 20% Generation: favourable seasonal allocation of volumes sold in 1H12 vs. 1H11 + PPA’s pri
Slide 26: EBITDA performance Distribution in Brazil
EBITDA performance Distribution in Brazil Distribution EBITDA Distribution Adjusted EBITDA (BRL million) (BRL million) -49% -24% 520 493 374 263 1H11 1H12 1H11 1H12 Electricity Distribution Brazil: Adjusted EBITDA -24% YoY to BRL374m in 1H12 (vs. BRL263m reported in 1H12) Excludes impact from tariff
Slide 27: Outlook
Outlook
Slide 28: 2012E Outlook
2012E Outlook Liberalized Activities Freeze of capacity payments in Portugal (negative impact of €20m in 2H12) 10% Iberia Market conditions: favourable for coal fired plants, adverse for gas fired production Brazil 16% Impact from hydro capacity increase in 2H12: dependent on levels of rain Wind Pow
Slide 29: A resilient business model in a challenging environment
A resilient business model in a challenging environment EBITDA: -0.8% (operations out of Portugal represented c60% of EBITDA) Sound Operating Cost of debt: 4.0% in 1H12 (vs 4.1% in 1Q12) Performance Net Profit/EPS: -4% Capex: -18% YoY in 1H12 on lower expansion capex in wind Selective Growth 0.7GW n
Slide 30: 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 September 4th – Reverse Roadshow Utilities Citi, Lisbon Link Results & Presentations: September 12th
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