Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — 9M20 Earnings Presentation
24 slides from Edp's earnings presentation, Oct 30, 2020
Slide 1: 9M20 Results Presentation
edp 9M20 Results Presentation Lisbon, October 30, 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: Recovery in 3Q20 vs. 2Q20 of electricity demand and prices
Recovery in 3Q20 vs. 2Q20 of electricity demand and prices in our main markets 75% EBITDA from long-term contracted and regulated activities Renewables: 20 GW installed by Sep-20, with +6.5 GW secured (+0.7 GW closed YTD) Positive developments regarding public support for renewables (EU, US) Viesgo
Slide 4: EBITDA -2% YoY; Recurring Net Profit +14% YoY
EBITDA: -2% YoY Recovery of hydro production in Iberia and good results in energy management EBITDA Electricity demand decline YoY, Brazilian Real devaluation vs. Euro (-23%), weak wind resources Recurring Net Profit: +14% YoY Avg cost of debt -80bps to 3.2% Recurring Net Profit Reported Net Profit
Slide 5: Electricity demand 9M20 YoY
Electricity demand 9M20: YoY (1) % YoY 1Q 0% 2Q 0% 3Q -3% -3% -3% -5% -11% -12% -13% (1) Data from EDP Distribuição to Portugal, REE to Spain; Brazil corresponds only to EDP Distribution concession areas in São Paulo and Espirito Santo 9M20 RESULTS PRESENTATION 5
Slide 6: EDP Hydro and Wind production
EDP Hydro production in Iberia EDP Wind production TWh TWh 9.6 21.7 20.1 5.9 9M19 9M20 9M19 9M20 Hydro resources Wind resources vs. LT Avg.(1) vs. LT Avg. (P50) Hydro reservoir EoP (1) (TWh) (1) Source: REN. Hydro resources reference from Portugal only. 9M20 RESULTS PRESENTATION 6
Slide 7: EBITDA
EBITDA €m; YoY growth, % ∆ YoY 2,676 2,625 -€147m Wind & Solar Weaker wind resources (-9% vs. LT avg. in 9M20) +€87m Hydro Iberia Asset rotation gains -€26m YoY (€200m in 9M20, wind offshore) Renewables 1,666 1,572 -€33m Hydro Brazil Hydro production in Iberia +62% (-3% vs. hist avg. in 9M20) Regula
Slide 8: Reported Financial Costs and Bonds issued
Reported Financial Costs Bonds issued Green bonds €m Amount Coupon Maturity Sep-19 €600m 0.38% 2026 Jan-20 (hybrid) €750m 1.70% 2080 545 527 Apr-20 €750m 1.63% 2027 19 505 Sep-20 USD850m 1.71% 2028 95 431 74 2020/21 bond maturities Amount Coupon Jan-20 USD 583m 4.13% 1Q20 (hybrid) (3) €750m 5.38% Ju
Slide 9: Change in Net Debt: Sep-20 vs. Dec-19
Change in Net Debt: Sep-20 vs. Dec-19 € bn Significant volume of transactions with financial closing expected before 2020YE: +36% YoY -€0.5 Bn FX impact 13.8 1.2 -1.0 -1.4 -0.4 13.0 0.7 +34% YoY 89% renewables 10% grids Brazil Net Debt Recurring Dividends to Net expansion Rights Issue Other & Net De
Slide 10: Recurring Net Profit 9M20 and Reported Net Profit
Recurring Net Profit 9M20 Reported Net Profit €m €m Δ YoY 460 422 EBITDA 2,647 D&A and 1,057 +47 Provisions EBIT 1,590 Net Financial Costs 448 +97 9M19 9M20 Income Taxes 249 -76 Non-recurring items (1) Non-controlling 224 +44 €m interest -€66m Extraordinary -€63m Extraordinary Energy Tax Net Profit
Slide 11: Strategy Execution
Strategy Execution
Slide 12: Projects already secured to be built with long term contracts
Projects already secured to be built with long term contracts(1) GW; Sep-20 Increased Global Public Support By technology By geography European Union 55% emissions cut by 2030 vs. 1990 13% €750 Bn Next Generation Fund, 26% >30% contribution to climate targets 35% 22% US PTC Extension secured: 100% f
Slide 13: Timeline of EDP asset rotation deals 2012-2020
Timeline of EDP asset rotation deals 2012-2020:(1) Asset rotation gains asset rotation deals agreed in 2012-2020: €bn 0.4 sold of proceeds 0.3 Annual average: ~2 deals and ~0.5 GW sold Avg. 2019-20 BP assumptions 0.1 Better than expected valuations achieved in 2019-20 support positive outlook for th
Slide 14: Electricity generation mix, specific emissions, revenues from coal
Electricity generation mix Specific emissions Revenues from coal % gCO2/kWh % Gas(1) 8% 10% 18% 19% 340 9% Coal 34% 7% 18% 7% 231 5% 74% 64% 122 Renewables 58% 2015 9M19 9M20 <2030 2015 9M19 9M20 2030 2018 9M19 9M20 <2030 (1) Includes residual contribution from other technologies (Nuclear, CHP and W
Slide 15: Covid Account: R$0.6bn liquidity for EDP Brasil
Weak macro context, but with supportive regulation Steep BRL devaluation, mitigated by local funding & inflation update Covid Account: R$0.6bn liquidity for EDP Brasil, partial Discos regulated revenues updated to inflation (IGP-M) recovery of COVID related overcontracting costs EDP ES: +9.3% (Aug-2
Slide 16: (single digit growth YoY despite COVID challenging context)
• • • • (single digit growth YoY despite COVID challenging context) • (1) Recurring Net Profit excludes exceptional and non-recurring items (including extraordinary energy tax/CESE) 9M20 RESULTS PRESENTATION 16
Slide 17: Appendix
Appendix
Slide 18: EBITDA - Wind & Solar
EBITDA - Wind & Solar €m; YoY growth, % 1,221 9M19 9M20 YoY 1,074 Avg. Installed Capacity(1), GW Europe 743 Production vs. LT Avg. (P50), % 575 Electricity Production, TWh Avg. selling price, €/MWh North America 455 487 Asset rotation gains, €m Brazil & Other 23 11 9M19 9M20 (1) Considers capacity a
Slide 19: EBITDA - Hydro
EBITDA - Hydro €m; YoY growth, % 9M19 9M20 YoY 499 Hydro production(1), TWh 445 Avg selling price(2), €/MWh Reservoirs, TWh Iberia 314 401 9M19 9M20 YoY Avg selling price, R$/MWh Brazil 130 97 GSF 9M19 9M20 (1) Excludes small hydro plants | (2) Does not consider results from hedging 9M20 RESULTS PRE
Slide 20: EBITDA - Networks
EBITDA - Networks €m; YoY growth, % 9M19 9M20 YoY Return on RAB Portugal(1), % 751 Return on RAB Spain, % 664 Opex Iberia, €m Portugal 382 378 9M19 9M20 YoY Transmission EBITDA, R$m Spain 117 106 Distribution EBITDA, R$m Brazil 252 180 VNR (2), R$m 9M19 9M20 Electricity distributed, TWh (1) RoRAB of
Slide 21: EBITDA - Client Solutions & Energy Management
EBITDA – Client Solutions & Energy Management €m; YoY growth, % ∆ YoY 400 Good results on energy management in Iberia supported by anticipated contracting in energy prices, thermal spreads and optimization of portfolio in a volatile energy 287 market environment 228 Resilient B2C demand and increase
Slide 22: Operations
Weight on Opex Operations Indicator YoY Change Main drivers Iberia Opex(1) -2% avg. headcount vs. Sep-19 EDP Brasil Opex(1) excl. growth and forex Avg. inflation: +2.9%(2) EDPR Growth of renewables development Adj. Core Opex/MW(3) activity (1) Opex ex-forex Opex like-for-like (excl. growth) (1) Oper
Slide 23: Financial liquidity and debt maturity profile as of Sep-20
Financial liquidity as of Sep-20 EDP consolidated debt maturity profile as of Sep-20 € bn € bn EDP Brasil EDP SA & EDP Finance BV and Other 2.9 Cash & Equivalents: 2.5 1.7 1.8 Of which: 1.6 • >90% due in 2024/25 1.4 1.4 Available Credit Lines: 1.3 • >25 counterparties 1.1 Total Liquidity 2020 2021 2
Slide 24: IR Contacts and Next Events
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Next Events Nov 2nd-3rd: JP Morgan Global Energy Conference Nov 19th: CA CIB Utilities & Infrastructure Conference 24
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