Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — H1 2020 Earnings Presentation
30 slides from Edp's earnings presentation, Sep 4, 2020
Slide 1: 1H20 Results Presentation
edp 1H20 Results Presentation Lisbon, September 4', 2020
Slide 2: Disclaimer
This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") solely for use at the presentation to be made on this date and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this presentation is made, o
Slide 3: EBITDA: -3% YoY; Recurring Net Profit +8% YoY
EBITDA: -3% YoY Recovery of hydro production in Iberia and good results in energy management EBITDA Decline of electricity demand in all markets and Brazilian Real devaluation vs. Euro Recurring Net Profit: +8% YoY Avg cost of debt -70bps to 3.3% supported by more competitive refinancing costs Recur
Slide 4: EBITDA €m; YoY growth
EBITDA €m; YoY growth, % ∆ YoY 1,921 1,871 Weaker wind resources (-9% vs. LT avg. in 1H20) -€172m Wind & Solar Avg. installed capacity -6% YoY (asset rotations in 2019) +€99m Hydro Iberia Asset rotation gains -€74m YoY (€145m in 1H20, wind offshore) Renewables 1,269 1,163 -€33m Hydro Brazil Hydro pr
Slide 5: Reported Net Financial Costs: 1H20 vs. 1H19
Reported Net Financial Costs: 1H20 vs. 1H19 Bonds issued Green bonds €m Amount Coupon Maturity Sep-19 €600 Mn 0.38% 2026 Jan-20 (hybrid) €750 Mn 1.70% 2080 371 353 368 Apr-20 €750 Mn 1.63% 2027 18 58 295 73 2020/21 bond maturities Amount Coupon Jan-20 USD 583 Mn 4.13% 1Q20 (hybrid) (3) €750 Mn 5.38%
Slide 6: Recurring Net Profit to Reported Net Profit
Recurring Net Profit 1H20 Reported Net Profit €m €m Δ YoY EBITDA 1,893 405 315 D&A and 712 +27 Provisions EBIT 1,181 Net Financial Costs 311 +60 1H19 1H20 Income Taxes 187 -50 Non-recurring Non-controlling interest 175 +29 items (1) €m Net Profit 509 -€61m Extraordinary Energy Tax -€65m Extraordinar
Slide 7: Strategy Execution
Strategy Execution
Slide 8: Strategy execution highlights
84% of 7 GW target additions in renewables for 2019-22 with LT contracts R$3.8 Bn transmission investments in Brazil, 71% already executed Viesgo Acquisition: Accelerated growth in networks and renewables in Iberia >55% of the €4 Bn target of asset rotation proceeds for 2019-2022 already executed €2
Slide 9: Total Shareholder Return
(1) Total Shareholder Return, Source: Bloomberg as of September 2nd. 1H20 RESULTS PRESENTATION 9
Slide 10: Iberian portfolio reshaping deals
Iberian portfolio reshaping deals [€] Next Steps The financial closing of the 3 operations expected in 4Q20. All corporate restructuring procedures and regulatory approvals on track For Viesgo, 100-day integration plan being prepared, kick-off after financial closing. (1) Based on 2019 EBITDA except
Slide 11: LT Contracted Renewables Assets: Recent transactions
LT Contracted Renewables Assets: Recent transactions [EV/MW in €m] Asset rotation Viesgo renewables acquisition [EV/MW at projects’ COD in USDm] 2.4x 2.1x 2.1x 1.6x 1.7x 1.1x 1H20 RESULTS PRESENTATION 11
Slide 12: Renewables Capacity LT contracts secured for 19-22
Renewables Capacity LT contracts secured for 19-22 Projects already secured Unprecedent execution GW Build-out GW; Aug-20 Medium-term BP execution on offshore track solar <0.5 GW projects expected to 6.0 6.0 GW have potential COD delays in wind 2020, although without impact 2.0 in projects’ fundamen
Slide 13: Renewables policy and growth opportunities
of tax incentives ( ) for new wind projects (100% for COD 2021-2022 and 60% for COD 2023-2024) Ambitious renewables policy proposals under discussion Next Generation EU: €750 Bn Fund of Next Generation, of which at least 30% contributing to climate targets Renewables growth: Wind onshore & solar add
Slide 14: EDP Brasil operations and financials
Operations Financials Macro environment: Supportive measures by the regulator in this pandemic Significant BRL devaluation: EUR/BRL currently @ ~6.50 period, with the creation of the Covid Account Interest rates at historical lows: Selic rate at 2.0% EDP Brasil strong financial position: Financial l
Slide 15: Energy Management & Thermal Iberia hedging position
EBITDA Energy Management & Thermal Iberia Hedging position Iberian electricity market: 2021 €m 191 148 Significant decline of merchant volumes exposure in 2021 following disposals in hydro (3.6TWh/year), CCGT (2TWh/year), 101 Avg. B2C supply Spain (2TWh/year) and planned coal shutdowns in 82 60 earl
Slide 16: Covid-19 response
, with >70% in remote working right in early stages of the pandemic in our geographies , by contributing to maintain the value chain, protecting employment and economic activities , ensuring continuity of supply and easing payment schedules , with more than €11m donated to projects in most of our ge
Slide 17: Recurring Net Profit outlook
(single digit growth YoY despite material challenging context) (1) Recurring Net Profit excludes exceptional and non-recurring items (including CESE) and excludes any potential NI coming from the Viesgo acquisition in 2020 1H20 RESULTS PRESENTATION 17
Slide 18: Appendix
Appendix
Slide 19: Electricity generation in 1H20; wind capacity evolution
Electricity generation in 1H20 Wind capacity evolution YoY TWh GW; Jun-20 0.8 Coal Other CCGT 5% 2% 12% under construction 0.8 GW net Solar 0% of minorities as of Jun-20 45% Wind 1.3 35% Hydro -0.5 Built-Out Asset rotation ∆ YoY renewables 1H20 RESULTS PRESENTATION 19
Slide 20: EDP Hydro and Wind production
EDP Hydro production in Iberia EDP Wind production TWh TWh Flat YoY, excluding 1.5 TWh production in 1H19 from last year’s asset rotation 7.9 16.0 14.5 4.3 1H19 1H20 1H19 1H20 Hydro resources Wind resources vs. LT Avg.(1) vs. LT Avg. (P50) Hydro reservoir EoP (1) (TWh) (1) Source: REN. Hydro resourc
Slide 21: Electricity demand 1H20: YoY change
Electricity demand 1H20: YoY change(4) Monthly changes in distributed energy in Portugal % YoY % YoY Residentials(1) SMEs(2) Corporates(3) Higher weight of residential -5% 10% demand in consumption mix 0% Earlier start and more severe -10% -8% restrictions of lockdown -20% EDP SP and ES regions: -30
Slide 22: Coal production in Iberia
Aboño to be Coal production in Iberia: YoY in 1H20, Aboño 1&2 (0.9 GW) converted to gas with all coal plants off in 2Q20, except Aboño 2 Soto 3 (0.3 GW) (COD 2022) Energy transition projects under development. Sines (1.2 GW) Hydrogen: Sines Puente Nuevo (0.3 GW) Renewables: Puento Nuevo and Los Barr
Slide 23: EBITDA - Wind & Solar
EBITDA - Wind & Solar €m; YoY growth, % 965 1H19 1H20 YoY Avg. Installed Capacity(1), GW 793 Production vs. LT Avg. (P50), % Europe 626 455 Electricity Production, TWh Avg. selling price, €/MWh North America 328 333 Asset rotation gains, €m Brazil & Other 11 6 1H19 1H20 (1) Considers capacity at EBI
Slide 24: EBITDA - Hydro
EBITDA - Hydro €m; YoY growth, % 370 1H19 1H20 YoY Hydro production(1), TWh 304 Avg selling price(2), €/MWh 304 Iberia 205 1H19 1H20 YoY PLD, R$/MWh Brazil 99 66 GSF 1H19 1H20 (1) Excludes small hydro plants | (2) Does not consider results from hedging 1H20 RESULTS PRESENTATION 24
Slide 25: EBITDA - Networks
EBITDA - Networks €m; YoY growth, % 1H19 1H20 YoY Return on RAB Portugal(1), % 473 RAB Iberia(2), €m 440 Opex Iberia, €m Portugal 258 246 1H19 1H20 YoY Transmission EBITDA, R$m Spain 81 70 Distribution EBITDA, R$m Brazil 135 123 Electricity distributed, TWh 1H19 1H20 (1) RoRAB of HV/MV | (2) Account
Slide 26: EBITDA – Client Solutions & Energy Management
EBITDA – Client Solutions & Energy Management €m; YoY growth, % ∆ YoY 287 Good results on energy management in Iberia supported 210 by anticipated contracting in energy prices, thermal 191 spreads and optimization of portfolio in a volatile energy EM & Thermal Iberia 101 market’s environment Coal pr
Slide 27: Operations: Opex indicators
Weight on Opex Operations Indicator YoY Change Main drivers Iberia Opex(1) -2% avg. Headcount vs. Jun-19 EDP Brasil Opex(1) excl. growth and forex Avg. inflation: +3.0%(2) EDPR Strong activity expansion with 2.0 GW Adj. Core Opex/MW(3) EBITDA under construction (1) Opex ex-forex Opex like-for-like (
Slide 28: Change in Net Debt: Jun-20 vs. Dec-19
Change in Net Debt: Jun-20 vs. Dec-19 Change in regulatory receivables: +€0.3 bn € bn Anticipated sale of 2020 tariff deficit: -€0.3 bn ForEx impact: -€0.3 bn +51% YoY -0.2 14.1 13.8 0.7 -1.0 0.8 €0.19/share (87% renewables, 12% grids Brazil) Net Debt Recurring Organic Net expansion Dividends to Oth
Slide 29: Financial liquidity and debt maturity profile
Financial liquidity as of Jun-20 EDP consolidated debt maturity profile as of Jun-20 € bn € bn EDP Brasil EDP SA & EDP Finance BV and Other 2.8 2.6 Cash & Equivalents: 2.2 1.7 Of which: 1.6 • >90% due in 2024/25 1.4 1.4 1.4 Available Credit Lines: 1.3 • >25 counterparties Total Liquidity 2020 2021 2
Slide 30: IR Contacts and Next Events
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Next Events Sep 7th: BBVA Iberian Conference Sep 16th-17th: XVII CaixaBank BPI Conference Oct 7th: JP Morgan Hydro Pumping Virtual Sep 8th: Utilities Reverse Roadshow Sep 22nd: BBVA Iberian Conference Conference Sep 10th: Exane
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