Edp S.a. · EURONEXT:EDP

Edp — Energias de Portugal — H1 2005 Earnings Presentation

29 slides from Edp's earnings presentation, Jul 29, 2005

  1. Slide 1: 2005 1st Half Results

    energias de portugal 2005 1st Half Results July 29th, 2005 1

  2. Slide 2: EDP Consolidated P&L

    EDP Consolidated P&L 1H2005 1H2004 1H2004* €m €m ∆% ∆ €m €m ∆% ∆ €m Gross Profit 1,909 1,761 8% 149 1,859 3% 50 Operating Costs 899 835 8% 65 839 7% 61 EBITDA 1,010 926 9% 84 1,021 -1% -11 EBIT 607 579 5% 28 637 -5% -30 Financials (122) (173) -30% 51 (280) -56% 158 Net Profit 318 288 11% 30 309 3% 9

  3. Slide 3: Milestones

    Milestones Focus on „ Exercise call options on additional 20% stake in Turbogás (990MW CCGT) and on Iberian 46.625% of Portgás, the 2nd largest gas Dis.Co. in Portugal energy „ 61% of the Group’s capex allocated to Iberian Energy – Distribution grid in Portugal: €187m – Renewables in Iberia: €10.5m

  4. Slide 4: Strong demand growth in all EDP markets and historic record peaks

    Strong demand growth in all EDP markets and historic record peaks Electricity 36.0 38.0 Distribution „ Continued solid growth in electricity demand across all EDP (TWh) 11.1 11.5 markets… – Portugal: +6.4% (20.4 to 21.8 TWh) 24.9 26.5 – Spain: +7.0% (117 to 125 TWh) 1H2004 1H2005 – Brazil: +3.4% (11

  5. Slide 5: A 687 MW increase in Group's installed capacity and higher load factor

    A 687 MW increase in Group’s installed capacity and higher load factor of total generation portfolio Installed „ +400 MW TER II started November 2004 11,463 12,150 Capacity 530 „ +170 MW in wind farms in Iberia (and +61 MW in other (MW) (1) 584 Special Regime Producers in Spain) 11,620 10,879 „ -79M

  6. Slide 6: Main Gross Profit drivers

    Main Gross Profit drivers Gross Profit Contribution ‘1H05/1H04 €€ million million + 17 - 79 +7 + 42 - 49 + 76 - 131 + 87 + 178 1,909 +€99m 1,859 +€50m 1,761 5.6% 2.7% 1H2004 60% HC Edinfor 1H2004* Portugal PES Liberalised Wind Regulated Activities Other 1H2005 Generation Geneneration Farms distribut

  7. Slide 7: Main Gross Profit drivers

    Main Gross Profit drivers Gross Profit Contribution ‘1H05/1H04 €€ million million + 17 - 79 +7 + 42 - 49 + 76 - 131 + 87 + 178 1,909 +€99m 1,859 +€50m 1,761 5.6% 2.7% 1H2004 60% HC Edinfor 1H2004* Portugal Liberalised Wind Regulated Activities Other 1H2005 Geneneration Farms distribution in Brazil C

  8. Slide 8: PES gross profit immune to 967 GWh decrease in output

    PES(1) gross profit immune to 967 GWh decrease in output and changes in generation mix SEP Generation GWh Electricity Generation in PES ’1H05/1H04 € million -9% 10,774 9,806 552 Fuel Oil 1.5% 2,665 5,335 Hydro 2,328 454 +9 + 107 -108 -1 460 4,887 4,813 Coal +€7m 1H2004 1H2005 0.81 0.33 Hydro coef. 1

  9. Slide 9: Main Gross Profit drivers

    Main Gross Profit drivers Gross Profit Contribution ‘1H05/1H04 €€ million million + 17 - 79 +7 + 42 - 49 + 76 - 131 + 87 + 178 1,909 +€99m 1,859 +€50m 1,761 5.6% 2.7% 1H2004 60% HC Edinfor 1H2004* Portugal PES Liberalised Wind Regulated Activities Other 1H2005 Generation Farms distribution in Brazil

  10. Slide 10: Short position in liberalized generation in Portugal hurt by high pool prices

    Short position in liberalized generation in Portugal hurt by high pool prices… 1H2004 GWh 1H2005 GWh Energy Sources Energy Destinations Energy Sources Energy Destinations Generation Activity 1,390 EDPC 2,195 Generation Activity 2,690 EDPC 3,074 Purchases Pool 1,799 EDPD 1,621 Purchases Pool 981 EDPD

  11. Slide 11: HC's long position on generation in Spain benefits from high pool prices

    … while HC’s long position on generation in Spain benefits from high pool prices Generation vs Supply Gross Profit Contribution ’1H05/1H04 € million GWh +€153m -€68m 2,420 +57% - 15 +3 - 69 -2 -9 209 7,486 133 +6 -8 5,066 - 19 + 188 1H04 Generation CO2 Fuel Generation CTCs Supply Supply Supply Other

  12. Slide 12: Main Gross Profit drivers

    Main Gross Profit drivers Gross Profit Contribution ‘1H05/1H04 €€ million million + 17 - 79 +7 + 42 - 49 + 76 - 131 + 87 + 178 1,909 +€99m 1,859 +€50m 1,761 5.6% 2.7% 1H2004 60% HC Edinfor 1H2004* Portugal PES Liberalised Wind Regulated Activities Other 1H2005 Generation Geneneration distribution in

  13. Slide 13: Additions to wind capacity in Iberia provided extra 198 GWh

    Additions to wind capacity in Iberia provided extra 198 GWh at regulated tariffs Wind Farms • Wind installed capacity increased following Installed Capacity Elect. Generation entry into service of: MW GWh PT: Vila Nova I – 20 MW (July 2004) and re- 365 powering of 6MW (April 2005); Serra do Açor – 2

  14. Slide 14: Main Gross Profit drivers

    Main Gross Profit drivers Gross Profit Contribution ‘1H05/1H04 €€ million million + 17 - 79 +7 + 42 - 49 + 76 - 131 + 87 + 178 1,909 +€99m 1,859 +€50m 1,761 5.6% 2.7% 1H2004 60% HC Edinfor 1H2004* Portugal PES Liberalised Wind Regulated Activities Other 1H2005 Generation Geneneration Farms in Brazil

  15. Slide 15: EDPD gross profit decreased 19% but allowed revenues fell only 3%

    EDPD gross profit decreased 19% but allowed revenues fell only 3% backed by strong demand 20,400 GWh Electricity Consumption Tariff difference (€79m in 1H2004) amounted to 1,133 €13.2m by YE2004: Electricity Distribution Gross Profit - € milliom -79 1H2004 • €7m are being returned to • Allowed reven

  16. Slide 16: Main Gross Profit drivers

    Main Gross Profit drivers Gross Profit Contribution ‘1H05/1H04 €€ million million R$/€ effect + 17 +27 - 79 +7 + 42 - 49 + 76 - 131 + 87 + 178 1,909 +€99m 1,859 +€50m 1,761 5.6% 2.7% 1H2004 60% HC Edinfor 1H2004* Portugal PES Liberalised Wind Regulated Activities Other 1H2005 Generation Geneneration

  17. Slide 17: All activities in Brazil up on higher volumes and tariff increases

    All activities in Brazil up on higher volumes and tariff increases „ Consumption up 3.4% driven by healthy Distribution Gross Profit ’1H05/1H04 economic growth R$ m +190 801 „ Average tariff increase up 14% following tariff +31% 611 adjustments and revisions in 2004 and 2005 „ Bandeirante: 15% „ Esc

  18. Slide 18: EBITDA up 9.1% driven by higher energy prices and consolidation changes

    EBITDA up 9.1% driven by higher energy prices and changes in consolidation perimeter EBITDA changes by item ‘1H05/1H04 € million -21 +50 -56 -105 +100 +116 1,021 1,010 926 10.2% -1.0% 1H2004 60% HC Edinfor 1H2004* Gross Profit Supplies and Personnel Other Opex 1H2005 Services Costs Consolidation Chg

  19. Slide 19: Increase in S&S mainly driven by sale of Edinfor

    Increase in S&S mainly driven by sale of Edinfor Supplies & Services € million Supplies and Services by company € million 409 1H05 409 +34% +57 1H04* +4 304 +14 +9 307 +26 -29 304 +7 +13 1H04 307 1H04 HC Edinfor 1H04* EDPP EDPD HC Brazil ONI Other 1H05 Consolidation Chg. „ EDPP: higher maintenance c

  20. Slide 20: Personnel costs reflects restructuring programme in 2004 and actuarial study

    Personnel costs reflects restructuring programme in 2004 and yearly actuarial study Personnel Costs Personnel Costs € million 400 1H05 300 +4 -10 -25% -44 300 1H04* 400 -54 +4 1H04 401 1H2004 Personnel Incentives Restruturing Pension Other 1H2005 Costs Active Early Costs Premiums & Workers Retiremen

  21. Slide 21: Other revenues affected by capital gains and one-off provision charge

    Other revenues affected by positive impact of capital gains and one-off provision charge Other Revenues (Costs) €m Other Revenues (Costs) € million Other Specific Other Renevues Change in Change in Asset gains Provision for Renevues Concession w/ REE, BCP Tariff Deficit 1H05 (costs) Operating (costs

  22. Slide 22: Net Profit growing in line with EBITDA

    Net Profit growing in line with EBITDA Net Profit Contribution ‘1H05/1H04 € million +9% +16% — -12% +8% YoY Change — +11% +10.5% +3 -10 -56 -39 318 288 +84 -16 +65 1H2004 EBITDA Deprec. & Interest Other Amortisation Taxes Minorities 1H2005 amort. (net of paid financials of concession invest. rights

  23. Slide 23: Iberian cash flow pressured by poor hydro conditions and high energy costs

    Iberian cash flow pressured by extremely poor hydro conditions in Iberia and high energy costs Cash Flow before capex ‘1H2005 million €€ million Iberia = 87% 17 -70 673 85 -99 142 361 -10 18 228 EDPP EDPC Renewables EDPD HC Hydro Brazil ONI Other Total Account Capex (63) (1) (10) (133) (109) - (181)

  24. Slide 24: Debt increases following high investments, dry period and dividend payment

    Debt increases following high investments, dry period and dividend payment Cash-flow to debt ‘1H2005 € million 673 -516 157 -136 -155 +178 -163 -455 -336 Cash flow Capex Cash flow Interest paid Financial Divestments Other non- Dividends Debt increase before Capex after Capex and other investments op

  25. Slide 25: Debt profile

    Debt profile Debt Maturity Profile € million Holding Others 1,851 1,749 1.517 1,132 1,185 837 678 98 2005 2006 2007 2008 2009 2010 2011 >2011 Debt by Currency ‘1H2005 Medium/Long Term Debt ‘1H2005 Variable Rate BRL 30% 10% EUR Fixed Rate 89% 39% USD 1% Hedged 31% 25

  26. Slide 26: EDP Consolidated P&L

    EDP Consolidated P&L 1H2005 1H2004 ∆% ∆€ Revenues 4,844 3,660 32% 1,184 Direct Costs 2,935 1,900 54% 1,035 Gross Profit 1,909 1,761 8% 149 Supplies & services 409 307 33% 102 Personnel Costs 300 401 -25% -101 Other costs (net) 190 127 50% 63 Operating Costs 899 835 8% 65 EBITDA 1,010 926 9% 84 Depre

  27. Slide 27: The 10 Strategic Drivers

    The 10 Strategic Drivers 1 – Market Liberalization – “Adapting to a new environment” 2 - Core Business and Original Geography – “Generation and Trading” 3 - Core Business and Original Geography – “Transmission” 4 - Core Business and Original Geography – “Marketing and Commercialization ” 5 – Expandi

  28. Slide 28: Financial and Operating Targets for 2006

    Financial and Operating Targets for 2006 2002 2006 Target Change Current Status Clients (million) 9.0 10.0 + 11 % √ Generation (TWh) 40.8 52.6 + 29 % √– Energy Sold (TWh) 67.8 74.9 + 10 % √+ Number of Employees 18.5 16.0 - 13 % √+ Gross Profit (€ bn) 2.8 3.7 + 32 % √ Operating Costs (€ bn) 1.2 1.3 +

  29. Slide 29: 2005 1st Half Results

    energias de portugal 2005 1st Half Results July 29th, 2005 29

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