Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — H1 2011 Earnings Presentation
30 slides from Edp's earnings presentation, Jul 29, 2011
Slide 1: Results Presentation 1H2011
Results Presentation 1H2011 LISBON, JULY 29TH, 2011 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 29th of July 2011 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: 1H11: Highlights of the period
1H11: Highlights of the period EBITDA: €1,900m, +4% 61% of EBITDA from out of Portugal: Strong growth in Brazil (+15%) and wind (+19%) Iberian traditional operations: EBITDA -4% Resilient regulated/contracted activities (+4%), weaker performance in liberalized market (-28%) Opex: +3% (including Braz
Slide 4: 1H11: Highlights of the period
1H11: Highlights of the period Capex down to €845m in 1H11 (-€467m vs. 1H11): driven by capex cut in wind US Net debt up to €16.9bn impacted by payment in 2Q11 of annual dividend + 20% in Genesa High financial liquidity: €3.0bn (Jun-11) after €1.9bn paid in 2Q11 (debt maturities + dividend + Genesa)
Slide 5: 1H11 Operating Headlines
1H11 Operating Headlines Installed Capacity 1H11 Generation Breakdown by Technology (GW) (%) (1) Wind Hydro CCGT Other +8% Other (1) CCGT 22.5 20.8 14% 19% 22% 24% 16% 17% 28% 33% 31% 39% 62% Hydro & Wind 67% 27% 31% Hydro & Wind 1H10 1H11 Installed capacity up 8% YoY Wind & Hydro: 62% of total capa
Slide 6: 1H11 EBITDA: Increasing portfolio diversification
1H11 EBITDA: Increasing portfolio diversification EBITDA Breakdown by Geography (%) 15% 15% 19% Brazil 21% 7% 17% 19% EDP Renováveis 17% 22% 19% 17% Spain 18% 61% 49% 45% Portugal 39% 1H06 1H09 1H10 1H11 Weight on EBITDA from operations out of Portugal increased from 39% in 1H06 to 61% in 1H11 5
Slide 7: 1H11 EBITDA: 89% from Regulated and LT Contracted Activities
1H11 EBITDA: 89% from Regulated and LT Contracted Activities EBITDA Breakdown by Activity (€ million) % Chg. YoY +4% €1,900m €1,831m Liberalized Activities -28% 11% 16% Iberia 21% Brazil +15% 19% Wind Power +19% 22% 19% 89% Regulated Networks 26% 24% +12% Iberia(1) LT Contracted Generation Iberia 23
Slide 8: Operating costs: Efficiency improvements with Opex/Gross Profit at 27%
Operating costs: Efficiency improvements with Opex/Gross Profit(2) at 27% in 1H11 Operating costs (1) : 1H11 vs. 1H10 6-Months average YoY Inflation: Jun-11 (€m) (%) Brazil EDPR Iberia +3% 10.5% 762 787 146 +11% 131 115 133 +16% 3.7% 3.5% -1% 516 508 1H10 1H11 Portugal Spain Brazil (IGP-M) Iberia: O
Slide 9: Business Areas
Business Areas _a
Slide 10: Electricity & Gas Demand in EDP's Key Markets
Electricity & Gas Demand in EDP’s Key Markets Brasil Portugal Spain Electricity Electricity Gas (Total Market) Electricity Gas (Total Market) 10% 11% 10% 3.8% 1.6% -0.6% -3.3% -1.3% -3.0% 1H11 vs. 1H10 (YoY) 1H11 vs. 1H08 (pre crisis levels) -17% Brazil: Steady consumption growth prompted by new cli
Slide 11: Long Term Contracted Generation Iberia (21% of EBITDA)
Long Term Contracted Generation Iberia (21% of EBITDA) EBITDA LT Contracted Generation EBITDA LT Contracted Generation Ex-Carregado (€ million) (€ million) PPA/CMEC (1) Special regime (2) PPA/CMEC (1) Special regime (2) -5% +6% 422 403 379 403 +1% +1% -5% +7% 1H10 1H11 1H10 1H11 PPA/CMEC: end of Car
Slide 12: Liberalised Energy Activities Iberia (11% EBITDA)
Liberalised Energy Activities Iberia (11% EBITDA) EBITDA Liberalised Activities (€ million) +10% -28% 210 190 1H08 1H09 1H10 1H11 Avg. Selling price(1) (€/MWh) 48.0 +14% 54.8 Avg. Sourcing cost (€/MWh) 34.2 +35% 46.0 Volumes sold (€/MWh) 23.6 +4% 24.6 EBITDA -28% YoY but 10% above pre-crisis level (
Slide 13: Liberalised Activities: Outlook for 2011 & 2012
Liberalised Activities: Outlook for 2011 & 2012 EDP: Electricity Forward Contracting - 2011 EDP: Electricity Forward Contracting – 2012 (%) (%) Pool Purchases 27TWh Not contracted Contracted Hydro with 10% clients 100% Nuclear 9% Coal 28% ~30% CCGT 53% Contracted Expected output Sales Expected outpu
Slide 14: Regulated Energy Networks Iberia (26% of EBITDA)
Regulated Energy Networks Iberia (26% of EBITDA) EBITDA EBITDA (adjusted for non-recurrent) (€ million) (€ million) Gas Iberia Gas Iberia Electricity Spain Electricity Spain Electricity Portugal Electricity Portugal +5% +16% 525 442 464 453 +22% +22% +74% +29% +2% -5% 1H10 1H11 1H10 1H11 Electricity
Slide 15: 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) (€th) (minutes) -3% -33% -3% 2,69 86 58 2,61 84 38 1H10 1H11 1H10 1H11 1H10 1H11 Efficiency ratios improved 3% YoY Higher qu
Slide 16: EDP Renováveis (22% of EBITDA): Strong growth
EDP Renováveis (22% of EBITDA): Strong growth driven by new installed capacity Installed Capacity EBITDA (MW) (€ million) 1H2011 6.887 1H2011 409 YoY % Chg + 22% YoY % Chg + 19% 1% 0,3% 11% 10% 9% 38% 14% 48% 32% 37% Installed Capacity +1.2GW: US (+0.6GW), Rest of Europe (+0.3GW), Spain (+0.3GW) and
Slide 17: Brazil (21% of EBITDA)
Brazil (21% of EBITDA) Evolution of EBITDA of EDP Brasil Evolution of EBITDA of EDP Brasil (BRL million) (€ million) Generation & Other Distribution +10% +15% 898 392 813 341 +18% +5% 1H10 1H11 1H10 1H11 EBITDA +15% YoY; +10% in local currency + 4% appreciation of BRL vs. EUR Distribution: 3% growth
Slide 18: Consolidated Financials
F ody | Consolidated Financials _a
Slide 19: Capex: Execution of Selective Growth
Capex: Execution of Selective Growth Consolidated Capex by technology(1) Consolidated Capex by geography (€ million) (%) -36% €1,312m EDP Brasil 55 CCGT Iberia 27 Hydro Portugal 92 (2) 10% 22% €845m 40% 15% 57 Wind Power 834 133 (2) 13% 15% 12% 345 14% 39% Maintenance 304 310 21% 1H10 1H11 1H10 1H11
Slide 20: Net Regulatory Receivables by Jun-11
Net Regulatory Receivables by Jun-11 Regulatory Receivables (€ million) 1,443 1,410 Regulatory Receivables Portugal: €898m (+€209m vs. Dec-10) 1,400 Last resort supply: €468m (+€201m vs. Dec-10) €163m generated in 1H11 due to higher than expected power procurement prices Portugal 689 CMECs: €302m (-
Slide 21: Change in Net debt
Change in Net debt Change in Net Debt: Dec-10 vs. Jun-11 (€ billion) Regulatory Regulatory Receivables Receivables 0,7 0,3 16.9 0,7 0,6 16.3 1,2 1,4 1,4 15.5 14,9 Net Debt Free Cash Flow (1) Chg. in Working Expansion Capex & Dividends Paid Forex & Fair Value (4) Net Debt Dec-10 Capital (2) Fin. Inve
Slide 22: Net Debt Breakdown by Jun-11 & credit ratios
Net Debt Breakdown by Jun-11 & credit ratios EDP consolidated debt maturity profile (€ million) Debt by Interest Rate Term Commercial paper Other subsidiaries(1) Fixed EDP SA + BV Brazil: € 223 M Average Debt Maturity Project Finance: € 43 M 47% Jun-11: 5 years 53% 3.500 €0.1bn Loans: 2011 Floating
Slide 23: Financial Liquidity position
Financial Liquidity position (€ million) Sources of liquidity (Jun-11) Maximum Number of Instrument Utilised Available Maturity Amount counterparties Revolving Credit Facility 2,000 21 800 1,200 03-11-2015 Domestic Credit Lines 190 10 6 184 Renewable Underwritten CP Programmes 650 3 - 650 Renewable
Slide 24: Main sources and uses of funds in 2011-2012
Main sources and uses of funds in 2011-2012 Sources of funds Use of funds Refinancing needs in 2011-2012: Cash & Equivalents (Jun-11): €1.0bn Loans maturing in 2011: €0.1bn €2.0bn Bond maturing in Jun-12: €0.5bn Available Credit Lines (Jun-11): Bond maturing in Nov-12: €0.7bn 14% sale of EDP Brasil
Slide 25: Net Profit up 8% YoY
Net Profit up 8% YoY (€ million) 1H10 1H11 ∆% ∆ Abs. EBITDA 1.831 1.900 +4% +70 Net Depreciations and Impact from longer useful life in wind farms 744 725 -3% -20 (from 20 to 25 years) Provisions EBIT 1.086 1.176 +8% +89 Financial Results & Higher cost of debt: 3.9% in 1H11 vs. 3.5% in (220) (254) -
Slide 26: Prospects
Fedp | Prospects _a
Slide 27: A resilient business model in a challenging environment
A resilient business model in a challenging environment EBITDA +4% (operations out of Portugal represented 61% of EBITDA) Strong Operating Cost of debt 3.9% in 1H11, avg. debt maturity 5 years Performance Net Profit: +8% Total Installed capacity by June-11: +8% YoY (wind power capacity +22%) Growth
Slide 28: Outlook 2H11
Outlook 2H11: Maintenance of EBITDA 2011E guidance: Low single digit growth YoY Guidance Increase of Net profit 2011E guidance: from “low single digit” to “mid single digit” growth YoY Maintenance of Net debt 2011E guidance: Net debt 2011E < Net Debt 2010 (1) Portuguese government’s special rights o
Slide 29: 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 14th - BBVA Conference (London) Link Results & Presentations: September 15th - Morgan Stanl
Slide 30: VAY!
VAY! r edp feel our energy
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