Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Q1 2015 Earnings Presentation
28 slides from Edp's earnings presentation, May 8, 2015
Slide 1: Results Presentation 1Q15
Results Presentation 1Q15 Lisbon, May 8th, 2015 0
Slide 2: Disclaimer
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 the 4th of March 2015 and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this
Slide 3: 1Q15: Key Highlights
1Q15: Key Highlights EBITDA: €1,017m, -1% YoY Penalized by adverse weather conditions in 1Q15 vs. 1Q14 Net Profit: €297m flat YoY Financial costs penalised by forex, lower effective tax rate Net debt: -2% or -€263m YTD to €16.8bn in Mar-15 including €436m adverse impact from EUR/USD Regulatory recei
Slide 4: 1Q15 results penalized by weaker hydro & wind volumes
1Q15 results penalized by weaker hydro & wind volumes in our key markets vs. a very strong 1Q14 GSF (Generation Scaling Factor) - Brazil EDP Hydro, Wind and Solar Production (100% = avg. year) (TWh) % Chg. YoY 96% 79% -26% 1Q14 1Q15 15.3 Hydro Coefficient - Portugal Hydro Brazil 2.3 11.4 (1.0 = avg.
Slide 5: EBITDA Breakdown
EBITDA Breakdown EBITDA Breakdown by division (€ million) % Chg. YoY Generation & Supply Iberia: weak hydro volumes in 1Q15 vs very strong in 1Q14; strong gains in 1Q14 -1% with energy management (not material in 1Q15) €1,030m €1,017m Liberalized 11% EDP Renováveis: recovery of prices in Spain and U
Slide 6: EDP's cost of funding: Positive developments
EDP’s cost of funding: Positive developments EDP 5-year bond yield (%) EDP major funding deals (2015 YTD) -56bp 1.9% Feb-15: €2bn 5-Year credit facility (with 16 international banks) at EURIBOR+1.1% (used to 1.3% early repay €1.6bn loan at EURIBOR+4%) Mar-15: €500m securitization of Tariff Deficit (
Slide 7: Execution of growth strategy presented in May-14
Execution of growth strategy presented in May-14: Investments focused on wind & hydro greenfield projects Upcoming capacity additions (GW) Hydro Portugal: 5 plants at 88% completion rate, to start 0.4 3.7 up in 2015/2016, mostly with pumping 0.3 1.5 Wind: 0.6GW under construction; +0.9GW for 2016-17
Slide 8: Continued reinforcement of EDP's distinctive equity story
Continued reinforcement of EDP’s distinctive equity story Visibility on profitable growth driven by renewables Balance between Growth & Deleverage Deleverage commitment Improved visibility of medium term FCF potential Keeping a low risk profile: Controlled >85% weight of EBITDA from Regulated and LT
Slide 9: Results Analysis
Results Analysis
Slide 10: Conditions in Iberia
Conditions in Iberia: Hydro & Mini-Hydro Power Production – Iberia (1) Avg. Pool Price in Spain (TWh) (€/MWh) 1Q -43% 76% 18 46 11 26 11 40 52 50 6 8 1Q14 2Q14 3Q14 4Q14 1Q15 1Q14 2Q14 3Q14 4Q14 1Q15 1.57 Hydro Coefficient Portugal 0.74 Wind Power Production – Iberia Thermal Power Production in Iber
Slide 11: Iberia: Energy Demand
Iberia: Energy Demand Electricity Demand in Iberian Market 1Q15 (1) Electricity demand Portugal (1) (∆% YoY) (∆% YoY) % Weight in Iberia in 1Q15 (2) Real Adjusted 100% 17% 83% 3% 2.2% 2.0% 3Q14 Iberian 2% 1.5% Portugal Spain Market 4Q14 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 1% 0.7% 2.2% 2.3% 0.0% 1.5% 0% 1Q
Slide 12: Electricity Generation in Iberia
Electricity Generation in Iberia EDP Liberalised Generation Portfolio – Production EDP PPA/CMEC Plants in Portugal: market deviation(1) (TWh) (€ million) % Chg. YoY Coal Hydro 2014 Adjustment +12% -17% 4.7 4.2 7% 77 0% Nuclear 8% 41% 64 -33% 4 37 4 Hydro 68% 56 44% +139% 40 Coal 21% CCGT +160% 9% 4%
Slide 13: Generation and Supply Iberia (26% EBITDA)
Generation and Supply Iberia (26% EBITDA) EBITDA Generation & Supply Iberia (€ million) Liberalised Activities Long Term Contracted Generation Liberalised Energy Activities in Iberia: -44% (-€85m) -29% Avg. generation cost +98% YoY on lower hydro volumes 1Q14 performance marked by significant gains
Slide 14: Regulated Energy Networks Iberia (30% of EBITDA)
Regulated Energy Networks Iberia (30% of EBITDA) EBITDA Adjusted EBITDA (1) (€ million) (€ million) Gas Iberia Gas Iberia Electricity Spain Electricity Spain Electricity Portugal Electricity Portugal +32% -2% 324 245 +130% 245 239 -6% +27% +2% -2% -2% 1Q14 1Q15 1Q14 1Q15 Electricity Portugal: New re
Slide 15: EDP Renováveis (31% of EBITDA)
EDP Renováveis (31% of EBITDA) Growth supported by higher prices and stronger USD Installed Capacity Production (2) EBITDA (MW) (GWh) (€ million) Iberia North America Other (1) -5% +10% +5% 319 8,149 6,112 7,762 5,786 289 - 38% 35% 38% -14% 35% 36% +0% 42% +4% 18% 14% +14% 17% 21% 19% +7% 22% +9% 47
Slide 16: Brazilian Electricity System: 1Q15 environment
Brazilian Electricity System: 1Q15 environment Hydro Generation Deficit Spot Market Price (PLD) (1) (1-GSF; in %) (€/MWh) 1Q15 developments 21% 647 -40% Hydro production in 1Q15 was at 58%(2) of historical avg. 5.3x Strong thermal dispatch to preserve hydro reservoirs under 388 low rainfall conditio
Slide 17: EDP Brasil (13% of EBITDA)
EDP Brasil (13% of EBITDA) EDP Brasil – Distribution EBITDA EDP Brasil – Generation & Other EBITDA (BRL million) (BRL million) -32% +64% 269 232 184 142 1Q14 1Q15 1Q14 1Q15 GSF of 79% in 1Q15 (vs. 96% in 1Q14) implied higher costs Growth of regulated gross profit: Positive timing impact with energy
Slide 18: Operating costs: flat YoY
Operating costs: flat YoY Operating costs(2): 1Q15 vs. 1Q14 1Q15 YoY Inflation (3) (€ million) (%) Brazil EDPR Iberia 0% 366 368 8.1% 61 65 7% 76 82 8% 229 220 -4% -0.3% -0.4% Portugal Spain Brazil (IPCA) 1Q14 1Q15 Iberia: -4% YoY on execution of OPEX III efficiency program and headcount reduction (
Slide 19: Investments breakdown
Investments breakdown Net Investments breakdown by division (1) (€ million) +54% €377m 27 13 601MW of wind capacity €245m Other under construction (66% US; Generation & Other Brazil 20 6 20% Brazil; 14% Europe) 165 EDP Renováveis 47 Expansion Hydro Portugal 118 5 hydro projects in final stage 84 of
Slide 20: Evolution of Regulatory receivables in Portugal
Evolution of Regulatory receivables in Portugal: In line with expectations Global Regulatory receivables in the Portuguese electricity system (€bn) Owed to Financial Investors (Securitized) Owed to EDP +0.5 Flat +0.8 +0.14 +0.05 +0.08 5.3 +0.05 5.3 5.3 +0.23 4.8 4.0 2.4 3.0 3.3 1.9 2.2 2.4 2.3 2.1 D
Slide 21: EDP's regulatory receivables
EDP’s regulatory receivables EDP’s Net Regulatory Receivables (€ million) -€226m 2,747 2,504 2,278 Portugal (1) 2,422 2,315 2,073 Spain 2 264 61 44 Brazil 187 161 Dec-13 Dec-14 Mar-15 Portugal: -€242m YTD (securitisations: -€465m; ex-ante deficit: +€375m; net deviations(2): -€152m) Spain: +€42m YTD,
Slide 22: 1Q15 Change in Net Debt
1Q15 Change in Net Debt Change in Net Debt: Mar-15 vs. Dec-14 EDP consolidated debt by currency: Mar-15 (€ billion) (%) -€0.3bn -€0.7bn 17.0 0.7 16.8 PLN 0.2 0.2 0.4 16.3 USD 1% 2.5 2.3 2.3 24% Regulatory Receivables 6% 69% 14.5 14.1 14.5 BRL EUR Net Debt Free Cash Reg. Expansion Net Debt Forex Net
Slide 23: Financial Debt: Average cost and maturity profile
Financial Debt: Average cost and maturity profile Avg. Cost of Debt: 1Q15 vs. 1Q14 EDP consolidated debt maturity profile as of Mar-15 (%) (€ billion) Commercial paper Other subsidiaries(1) Avg. Debt Maturity: EDP SA + BV 4.4 years +10bp Brazil: €311M 4.6% 4.7% Project Finance: €93M 4.0 3.5 3.0 2.5
Slide 24: Main sources and uses of funds
Main sources and uses of funds Sources of funds Use of funds Cash & Equivalents (Mar-15): €2.2bn Refinancing needs in 2015: Available Credit Lines (Mar-15): Bonds maturing in May-15 €0.25bn Revolving Credit Facility €3.15bn Bonds maturing in Jun-15 €0.5bn Other Credit Lines €0.4bn Loans maturing in
Slide 25: Financial Results
Financial Results Financial Results: 1Q15 vs. 1Q14 (€m) (58) 20 0.4 (208) Higher net financial interests: (22) +10bp YoY on avg. cost of debt (147) (4.7% in 1Q15) and impact from stronger USD/EUR ForEx diff.: €40m losses in 1Q15 vs. €19m gain in 1Q14 (non-cash) Tariff Deficit Securitisation gain: €3
Slide 26: Net Profit breakdown
Net Profit breakdown (€ million) 1Q14 1Q15 ∆% ∆ Abs. EBITDA 1,030 1,017 -1% -13 Amortisation, Impairm. Stronger USD/EUR 331 337 +2% +6 and Provisions New capacity installed by EDPR EBIT 699 680 -3% -19 Financial Results & (135) (210) +55% -74 Associated Companies No tax impact from sale of Gas Murci
Slide 27: 2015 Outlook
2015 Outlook EBITDA Breakdown (%) > €3.6bn Portfolio diversification: low hydro volumes in 1Q15 should be mitigated by Liberalised better thermal spreads in 2H15 and currently high hydro reservoirs (~74%) 10% Activities Iberia Hydro capacity additions impact EBITDA mainly as from 4Q15 onwards Brazil
Slide 28: IR Contacts
IR Contacts Miguel Viana, Head of IR Sónia Pimpão Elisabete Ferreira João Machado Maria João Matias Noélia Rocha E-mail: ir@edp.pt Phone: +351 210012834 Visit EDP Website Next Events May 11th-13th: Roadshow in Boston-New York (HSBC) Site: www.edp.pt May 18th-20th: Roadshow in London (UBS) Jun 2nd-3r
EDP - Energias de Portugal — Q1 2015 Earnings Presentation on 6ix