Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — H1 2004 Earnings Presentation
34 slides from Edp's earnings presentation, Jul 29, 2004
Slide 1: 1H2004 Results
energias de portugal 1H2004 Results July 29th 2004
Slide 2: Main facts for 1H2004
Main facts for 1H2004 IBERIAN ENERGY Signed agreements for the acquisition of control of Galp Energia’s natural gas business EDP awarded 12.8 of 20 million tons CO2 licenses granted to electrical sector, pending EU approval BRAZIL In April, ANEEL granted Enersul an annual average tariff increa
Slide 3: Sound fundamentals
Sound fundamentals 1H2004 1H2003 Var. % Electricity Generation (GWh) 21,481 23,157 -7.5% Portugal 12,721 15,148 -16.0% Spain 7,068 6,446 9.7% Brazil 1,629 1,564 4.2% Electricity Distribution (GWh) 35,787 34,015 5.2% Portugal 20,385 19,380 5.2% Spain 4,525 4,188 8.0% Brazil 10,877 10,447 4.1% Gas Dis
Slide 4: Strong operating performance
Strong operating performance 1H2004 1H2003 Chg. % Chg. € GROSS PROFIT 1,586.2 1,490.4 6.4 % 95.8 OPERATING COSTS 599.6 612.7 -2.1 % -13.1 EBITDA 986.6 877.7 12.4 % 108.9 EBIT 551.6 406.8 35.6 % 144.7 FINANCIAL RES. -181.5 -182.5 -0.6 % 1.1 EXTRAORDINARY RES. -20.1 59.4 - -79.5 NET PROFIT 274.9 182.0
Slide 5: Gross profit up 6%
Gross profit up 6% Gross Profit Breakdown 1H04/1H03 YoY Change +30% +5% +6.4% +12% -86% +27% ▲€3m ▼€8m +72% -0.1% ▲€48m ▼€34m ▲€4m ▼€1m ▲€25m ▲€58m 1H2003 EDPP EDP Enernova EDPD HC (40%) Brazil Oni Other 1H2004 Energia & Bioeléc. €1,490m €534m €6m €9m €605m €117m €205m €77m €1,586m Swings in EDPP an
Slide 6: Cost cutting continues
Cost cutting continues Personnel Costs Supplies & Services * Other Operating Costs. 1H2003 1H2003 1H2003 €345m €237m €31m - 5.9% - 7.9% + 84.5% 1H2004 1H2004 1H2004 €325m €218m €57m * Adjusted for ONI’s Direct Costs that are accounted under Supplies & Services on EDP Group Consolidated accounts EDP
Slide 7: HR Restructuring Program
HR Restructuring Program Transfer of Responsibilities with Early Retirees to Negotiated Dismissals & Early Retirements Social Security NPV €200-250m NPV €21m Empl. Benefits (2) Costs (2) Empl. Total 718 741 1,350 Average Average Cost (1) €302 th Cost (1) €119 th Costs EDPD Total €223m Average €88m A
Slide 8: EBITDA up 12%...
EBITDA up 12%... EBITDA Breakdown 1H04/1H03 + 12.0% YoY Change +49.5% n.m. +2.2% €987m +11.3% n.m. +24.4% ▲ €15m ▲ €0.5m +131% -1.2% €878m ▲ €46m ▼ €34m ▲ €5m ▼ €3m ▲ €15m ▲ €43m EBITDA EDPP EDP Enernova EDPD HC Brazil Brazil ONI IT Other EBITDA 1H03 Energia & Bioeléc. (40%) (Op.) (Forex) 1H04 €878m
Slide 9: ...while Net Profit up 51%
…while Net Profit up 51% Net Income 1H04/1H03 YoY Change -7,6% -0,6% n.m. + 12,4% - + 51% ▲ €1m -6,6% ▼ €275m €36m ▼ €7m ▼ €19m ▼ €79m €182m ▲ €109m €38m* Net Profit EBITDA Depreciation Financial Extraordinary Income Minority Net Profit 1H2003 & Provisions Results Results Taxes Interests 1H2004 €182
Slide 10: Generation contributes over 70% to Net Profit
Generation contributes over 70% to Net Profit Net Income Breakdown 1H04/1H03 - +51% +17% n.m. YoY Change €275m n.m. ▼€2m ▲ €14m ▲ €11m +21% n.m +64% +29% x7 ▼€8m ▲ €48m ▼€23m ▲ €3m ▲ €14m €182m ▲ €35m Adjusted for the forex hedge at EDP Adjusted for the deferred through Escelsa’s tax applied to the
Slide 11: Invested in generation and in distribution grid
Invested in generation and in distribution grid Capex by Business Area – 1H04 ▼ €11m ▲ €2m ▲€110m YoY Change ▲ €47m ▼ €5m ▲ €21m ▲ €10m ▲ €24m ▲ €21m EDPP Enernova EDPD HC (40%) Brazil ONI Edinfor Other 1T2004 & Bioeléc. €100m €31m €123m €51m €114m €14m €7m €7m €447m Capex up 33% YoY concentrated in
Slide 12: Strong operating cash flow
Strong operating cash flow Net Debt 1H2004/YE2003 €852m €268m €147m €41m €7,205m €447m €7,256m Net Debt Financial Divestments & Net Debt Operating Dividends YE2003 Capex interests & other non- 1H2004 Cash Flow paid other (net) operating CF Slight increase in net debt after heavy investment and payme
Slide 13: EDP Produção
energias de portugal EDP Produção
Slide 14: Non-binding added €18m to gross profit
Non-binding added €18m to gross profit Electricity Emission (GWh) Electricity Gross Profit +6% -16% 15,148 551 €123m €110m 12,721 429 €26m €7m €2m €488m 561 €443m 5,459 1,385 5,440 8,709 5,335 1H2003 1H2004 PPA PPA Fuel Trading SRP’s Electrici. Total Capacity Energy Costs /TER (Gross Autoconsump. Hy
Slide 15: EBITDA up 11%
EBITDA up 11% EBITDA 1H04/1H03 Var. YoY EBIT 1H04 + 452.9% + 16.0% - 0.2% - 28.7% + 11.3% + 0.6% + 6.1% ▲ €4m ▼ €0.1m ▲ €7m €451m €122m ▲ €29m ▲ €28m €405m + 15.8% €329m EBITDA Electricity Services Supplies & Personnel Other Revenues EBITDA Depreciation EBIT 1H03 Gross Profit Provided Services Costs
Slide 16: EDP Energia
energias de portugal EDP Energia
Slide 17: Leadership in the liberalised market
Leadership in the liberalised market Number of Clients ▼ €34.0m 2,602 €32.6m 1,244 Mkt Share 1,906 ~ - 9.4% - 8.5% + 19.6% 913 73% ▼ €0.3m ▼ €0.2m ▲ €0.4m 1H2003 1H2004 -€1.3m EBITDA Electricity Supplies Personnel Other EBITDA 1H2003 Gross and Costs Costs / 1H2004 Sales (GWh) 3,149 Profit Services (
Slide 18: EDP Distribuição
energias de portugal EDP Distribuição
Slide 19: 7.8% increase in Allowed Revenues
7.8% increase in Allowed Revenues Change in Allowed Revenues 1H04/1H03 ▲ €31m +7.8% €40m ▲ €24m ▼ €15m €9m ▲ €1m ▲ €5m -0.5% €633m €597m €587m 5.2% Decrease in €593m Consumption UDGr Tariffs Growth UDGr HV/MV -3.7% Gross Tariff Allowed Allowed Revenues Allowed Allowed Tariff Allowed Tariff Gross Pro
Slide 20: Strong growth in EBIT
Strong growth in EBIT EBITDA Breakdown 1H04/1H03 YoY change EBIT 1H04 Accounting -0.5% -7.3% +13.7% -1.2% change +10.5% -8.2% €265m ▼ €3m ▲ €10m ▲ €5m €262m X2 ▼ €15m €197m €37m €102m EBITDA Gross S&S Personnel Other Oper. EBITDA Deprec. & Comp. of EBIT 1H03 Profit Costs Costs (1) 1H04 Provisions Su
Slide 21: Service improving and costs under control
Service improving and costs under control Cash Costs per Client Equivalent Interruption Time Operating Costs per Client 161 min. -0.9% +3.2% 100 min. €60.1 €51.2 €59.5 €49.7 1H2003 1H2004 1H2003 1H2004 1H2003 1H2004 Total number of clients up 1.5% Cash costs include 22% increase in investments in gr
Slide 22: Hidrocantábrico
energias de portugal Hidrocantábrico
Slide 23: Increased market share in dry year
Increased market share in dry year Electricity Emission GWh Key Operating Figures 7,068 1H2004 1H2003 U 6,446 +10% 905 493 Pool Price €/MWh 32.3 34.1 -5.3% CCGT HC Price €/MWh 30.6 32.3 -5.4% 4,839 Coal 5,052 Nuclear Fuel Costs €/MWh 19.7 15.3 +28.5% Hydro Market Share 7.4% 7.1% - 578 568 536 544 CT
Slide 24: Gross profit up 27% thanks to Naturcorp
Gross profit up 27% thanks to Naturcorp Gross Profit Breakdown 1H04/1H03 + €8m +27% + €60m + €9m €292m Special Other - €7m + €12m - €29m + €5m + €4m Regime €231m gross profit Pool Price Higher Distributio Gas gross (new wind Fuel costs Supply effect and Electricity sales n gross profit farms Emissio
Slide 25: EBITDA up 24%
EBITDA up 24% EBITDA Breakdown 1H04/1H03 YoY Change EBIT 1H04 + 26.9% + 19.5% + 16.6% n.m. +24% +17% ▲ €7m ▲ €7m ▲ €10m €193m €83m €155m ▲ €62m +31% €109m EBITDA Gross Profit S&S Personnel Other (net) EBITDA Depreciation EBIT 1H2003 Costs 1H2004 & Provisions 1H2004 €155m €293m €43m €49m €7m €193m €8
Slide 26: Brazil
edp energias de portugal Brazil
Slide 27: Strong demand and higher tariffs
Strong demand and higher tariffs Electricity Distribution and Sales Operating Data 1H2004 1H2003 U +4.1% Distribution Bandeirante Distribution GWh 5,805 5,408 +7.3% -4.1% 10,877 Gross Profit (R$m) 319 192 +66.6% 10,447 Sales 9,182 8,807 Escelsa Distribution GWh 3,555 3,603 -1.3% Gross Profit (R$m) 1
Slide 28: Operating costs under control
Operating costs under control EBITDA Breakdown 1H04/1H03 YoY Change EBIT 1H04 + 35.6% + 1.1% + 10.9% + 95% +55% - 6.3% ▲ R$1m ▲ R$12m ▲ R$15m R$138m +101% R$472m R$334m R$305m ▲ R$196m EBITDA Gross profit S&S Personnel Other (net) EBITDA Depreciation EBIT 1H2003 costs 1H2004 & Provisions 1H2004 R$30
Slide 29: Oni
energias de portugal Oni
Slide 30: Gross profit up 5% thanks to voice
Gross profit up 5% thanks to voice Voice Traffic Internet Dial-Up Gross Profit Breakdown YoY Change (Million min.) (Million min.) +14.1% -24.1% +4.7% ▲ €1m ▼ €2m 1,548 357 ▲ €5m ▼ €0.3m 1,356 271 €77m 520 476 €74m 128 125 315 210 756 900 43 61 1H03 1H04 1H03 1H04 Gross Voice Internet Data Other Gros
Slide 31: Positive EBITDA
Positive EBITDA EBITDA Breakdown 1H04/1H03 ▲ €2m +15m Cost Cutting ▼ €3m Program €13m ▼ €7m EBITDA Gross Profit 1H2003 - €3m Supplies & Personnel Other EBITDA Services Costs Operating 1H2004 ▲ €3m Revenues - €3m €77m €38m €28 €2 €13m Strict cost cutting resulted in €13m positive EBITDA Savings in ne
Slide 32: energias de portugal
energias de portugal
Slide 33: Strong operating performance
Strong operating performance 1H2004 1H2003 Chg. % Chg. € GROSS PROFIT 1,586.2 1,490.4 6.4 % 95.8 OPERATING COSTS 599.6 612.7 -2.1 % -13.1 EBITDA 986.6 877.7 12.4 % 108.9 EBIT 551.6 406.8 35.6 % 144.7 FINANCIAL RES. -181.5 -182.5 -0.6 % 1.1 EXTRAORDINARY RES. -20.1 59.4 - -79.5 NET PROFIT 274.9 182.0
Slide 34: energias de portugal
energias de portugal
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