Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — 9M18 Earnings Presentation
22 slides from Edp's earnings presentation, November 2018
Slide 1: 9M18 Results Presentation
FUNCIONA CUSTOMER SERVICE, SPAIN ALTO RABAGÃO, ARKWRIGHT SUMMIT, PORTUGAL USA 9M18 Results Presentation
Slide 2: 9M18 Recurring EBITDA and Net Profit Highlights
Recurring EBITDA(1): €2,428m YoY -6% Forex impact on BRL and USD depreciation vs. Euro Regulatory changes announced in 4Q17 in Portugal (-€169m YoY) Recurring Strong opex performance, YoY recovery of hydro production in Iberia -6% EBITDA (1) EDPR: 6-year record low for wind resources in 3Q18 and YoY
Slide 3: Hydro Production in Iberia and EDPR Wind Resources
EDP Hydro production in Iberia(1) (TWh) EDPR Wind Resources (Load Factor) Hydro LF 2017 2018 LT Avg. resources +87% vs. LT Avg. 40% 11.1 +75% 35% 5.9 30% +55% 3Q 2Q 25% 1Q -7% 20% 9M17 9M18 1Q 2Q 3Q 4Q 6-year record Hydro resources 2018 quarterly wind low wind vs. LT Avg. -43% +20% resources vs. LT
Slide 4: Recurring EBITDA 9M18
Recurring EBITDA 9M18(1) (€m) 0% Ex-forex ex-forex -6% Portugal: 2,571 2,428 -1% - G&S: hydro production +82%; taxes +€53m (2) - Distribution: lower regulated revenues (-€116m) 35% -3% Iberia 36% Spain: hydro production +176%; improved market conditions 8% +8% Wind resources vs. LT avg. -4% in 9M18;
Slide 5: Opex by Business Area
Weight on Opex Business area Indicator YoY Change Main drivers Inflation Portugal +1.0%(2) 55% Iberia Opex(1) -2% Supply # Customers (3): +1%; Gen. Avg. MW + 1% Avg. Inflation 9M18: +3.5%(4) 16% EDP Brasil Opex in BRL -1% DisCos # Customers: +2% YoY Build-up of O&M internalisation strategy 29% EDPR
Slide 6: Recurring Net Profit 9M18
Recurring Net Profit 9M18 (1) (€m) Portugal weight Reported Net 19% 6% Profit (%) +2% YoY(1) 558 570 386 Strong YoY improvement of hydro conditions 370 +4% +€17m Negative impact from 4Q17 regulatory decisions 128 -26% 95 -€33m Net profit -30%; EDP stake increased from 77.5% to 82.6% +49% 89 +€29m Ne
Slide 7: Guidance
Guidance Key drivers 4Q seasonality stronger for renewables EBITDA €3.4bn Recovery of BRL/EUR in 4Q18 One-offs: CMEC provision booked in 3Q18 (-€0.2bn at net profit level) Net Profit €0.5-0.6bn Recurring net profit ~€0.8bn
Slide 8: CO2 Price, Iberian Power Prices and Demand Growth
CO2 EUA Price 2019 (€/ton) Iberian Forward Power Prices 2019 (€/MWh) Demand growth Iberia 9M18 (1) (%) vs 9M14 YoY +141% +30% 19.0 60.8 4.9% 4.6% 46.6 3.0% 7.9 0.9% 8-Nov-17 8-Nov-18 8-Nov-17 8-Nov-18 Portugal Espanha Oct-18: Suspension of 7% generation tax and removal of green cent on gas in Spain
Slide 9: EDP Brasil Hedging and Transmission Lines
EDP Brasil hedging in energy markets | 9M18 (R$m) Ongoing execution of 5 electricity transmission lines (COD 2021/22) R$18m in R$3.1bn 12-14% 3Q18 Expected Expected 85% in 3Q18 186 ROE(2) capex -520 95% of this capex to occur in 2019/21 Espírito Santo Line: 79% of construction works done (17 months
Slide 10: EDPR Wind and Solar Projects Under Construction
Wind onshore and solar Projects with PPA/FiT secured Wind offshore Projects with CFD/FiT secured North America Europe Moray East (1) Canada Brazil 1.7 950 MW 0.2GW 60% wind installed 0.3 40% solar in 9M18 Agreement with Vestas signed in Aug-18; FID in 4Q18 0.3 1.0 0.9 COD: 2022 0.1 0.3 0.8 1.0 Noirm
Slide 11: CTG Offer: Regulatory Approvals Progress
Clear signals that CTG is moving forward with regulatory approvals in the context of the Offer (recent approval granted by CADE in Brazil, EU pre-notification,…) EDP’s Board of Directors maintains position stated in June 9th Report Company and management keep focused on shareholder value creation
Slide 12: Results Analysis
‘ Results Analysis 2
Slide 13: Installed Capacity and Electricity Production by Technology
Installed capacity breakdown by technology | Sep-18 (GW) Electricity production breakdown by technology | 9M18 (TWh) Wind Hydro Solar CCGT Coal Other (1) Wind Hydro Solar CCGT Coal Other (1) 12% 1% 2% 24% 14% 40% 38% 27.0GW 54.1TWh 0.5% +2% YoY +5% YoY 7% 0.3% 33% 74% 28% 66% Renewables Renewables +
Slide 14: EDPR EBITDA
EDPR EBITDA (€m) Europe (1) North America Brazil ex-forex -9% 9M17 9M18 YoY Avg. Installed Capacity 10.0 10.7 +6% (GW) -12% Production vs. LTA (P50) 991 -1% -4% -3pp (%) 3% 869 3% Electricity Production 19.8 20.7 +4% 44% (TWh) 46% Avg. selling price -11% 60.6 53.7 (€/MWh) (-8% ex forex) 53% 51% PTC
Slide 15: Recurring EBITDA Generation & Supply Iberia
Recurring EBITDA Generation & Supply Iberia(1) (€m) +24% 9M17 9M18 YoY 640 Hydro Production (3) 5.9 11.1 +87% (TWh) 518 Hydro weight on Gen. Mix 23% 42% +19pp 111 (%) CMEC deviation (2) Avg. production cost (4) 33 26 -20% (€/MWh) Regulatory costs 408 138 179 +29% (€m) CMEC deviation revenues 111 5(5
Slide 16: EDP Brasil EBITDA
EDP Brasil EBITDA (R$m) Distribution Pecém I Hydro Gen., Supply & Other +19% 9M17 9M18 YoY 1.952 Espírito Distribution 12.1% 11.8% -0.3pp 1.640 Santo 782 grid losses (1) +11% 705 (%) São Paulo 9.6% 8.5% -1.1pp +44% 487 Pecém availability 338 -R$13m +R$98m +R$112m penalty/premium (R$m) 598 +14% 683 G
Slide 17: Pro-forma EBITDA – Regulated Networks
Pro-forma(1) EBITDA – Regulated networks (€m) Electricity Spain Electricity Portugal -19% 9M17 9M18 YoY 592 Regulated revenues 926 811 -12% (€m) 117 477 Return on RAB 108 6.68% 5.42% (2) -126bp (%) OPEX 475 271 261 -4% -22% 77% (€m) 369 Electricity distributed 33 34 +4% (TWh) 9M17 9M18 (1) In 9M17,
Slide 18: Change in Net Debt: Sep-18 vs. Dec-17
Change in Net Debt: Sep-18 vs. Dec-17 (€bn) Regulatory Receivables Net debt excluding reg. receivables System debt in Portugal €0.5bn surplus in 9M18 Annual payment in 1.0 -0.1 14.5 May-18 13.9 -1.0 0.7 +0.7 0.9 13.0 13.9 Net Debt Recurring Organic Dividends paid to Net expansion Reg. Receivables, N
Slide 19: Financial Liquidity and Debt Maturity Profile
Financial liquidity as of Sep-18 (€bn) EDP consolidated debt maturity profile as of Sep-18 (€bn) EDP S.A., EDP Finance B.V. and Other EDP Brasil Cash & Equivalents: €1.0bn 2.4 2.3 Available Credit Lines: 2.2 €5.3bn 2.0 2.0 1.9 1.5 0.9 Total Liquidity 0.6 €6.3bn 2018 2019 2020 2021 2022 2023 2024 202
Slide 20: Net Financial Costs: 9M18 vs. 9M17
Net Financial Costs (1) : 9M18 vs. 9M17 (€m) -25% Net interest costs: -14% YoY; Avg. cost of debt -40bp 582 to 3.7% in Sep-18; Avg. debt -11% YoY -71 -52 Forex & energy derivatives: -25 434 - (+€8m in 9M18 vs. -€44m in 9M17) Other: - In 9M18, +€15m on sale of 20% stake in UK wind offshore project; +
Slide 21: 9M18 Reported and Recurring Net Profit
9M18 Reported and Recurring Net Profit (€m) Reported YoY(1) Recurring(2) YoY(3) €0.6bn NED Underlying growth in Brazil and hydro improvement offset by EBITDA 2,410 -719 gain (3Q17) 2,428 -143 regulation in Portugal (-€169m), weaker wind and forex (-€132m) Amort., Impair. CMEC -1,332 -294 provi
Slide 22: Investor Relations Contacts
Miguel Viana, Head of IR Nov 14th: European Equities UBS Conference (London) Sónia Pimpão Maria João Matias Nov 15th: Roadshow in London Sérgio Tavares Carolina Teixeira e-mail ir@edp.pt phone +351 210012834 site www.edp.com 22
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