Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — 9M15 Earnings Presentation
29 slides from Edp's earnings presentation, Oct 30, 2015
Slide 1: Results Presentation 9M15
Results Presentation 9M15 Lisbon, October 30th, 2015 0
Slide 2: Disclaimer
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 the 30th of October 2015 and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where th
Slide 3: 9M15: Key Highlights
9M15: Key Highlights EBITDA: €2,991m +10% YoY Adj. EBITDA: €2,567m +5% on new wind capacity and EDP Brasil recovery in 3Q15 Inst. capacity +8% YoY; assets under construction support similar growth pace for next 12 months Reinforcing portfolio with competitive assets (mostly wind & hydro) and stable
Slide 4: Overview for 4Q15/2016
Overview for 4Q15/2016: EBITDA Iberian Impact from hydro capacity additions concentrated mostly in 2H16 Business / Hedging provides significant protection to power price exposure Commissioning of new capacity Renewables Strong level of hedging for 2016 Better GSF, Pecém improving, start of Cachoeira
Slide 5: Asset allocation: Doubling installed capacity in 10 years
Asset allocation: Doubling inst. capacity in 10 years based on organic growth in competitive renewables EDP Group installed capacity by technology(1) (GW) Nuclear, Fuel and Other 2.0x Coal 24.7 Gas and Cogen. 1% Wind and Solar 14% Hydro 15% 12.3 38% 17% 22% 70% 14% 3% 33% 43% 47% 2005 2015E 11GW of
Slide 6: Growth projects up to 2017
Growth projects up to 2017 Focused on wind & hydro greenfield projects Capacity additions 2015-2017E (1) (GW) Already online Hydro Portugal (pumping/storage): 4 plants (91% 0.4 4.1 completed) to be commissioned in 4Q15 and 2016 0.1 2.1 Wind (PPA/feed-in tariff): 0.5GW under construction; +0.9GW PPAs
Slide 7: Projects in execution reinforce competitiveness of our generation portfolio by 2017
Projects in execution reinforce competitiveness of our generation portfolio by 2017 Average Residual Useful Life of EDP’s Generation Portfolio by Technology Dec-2017E (1) Average Residual Useful Life of (Years) EDP’s Generation Portfolio (Years) Coal with Coal without Hydro CCGT Wind & Solar Nuclear
Slide 8: EDP's distinctive equity story
EDP’s distinctive equity story Visibility on profitable growth driven by renewables Balance between Growth & Deleverage Deleverage commitment Improved visibility of medium term FCF potential Keeping a low risk profile: Controlled High weight of EBITDA from Regulated and LT Contracted Attractive Risk
Slide 9: Results Analysis
Results Analysis
Slide 10: 9M15 results penalized by weak hydro & wind volumes vs. strong 9M14
9M15 results penalized by weak hydro & wind volumes in our key markets vs. strong 9M14 Hydro Deficit (1-GSF) - Brazil EDP Hydro, Wind and Solar Production (100% = avg. year) (TWh) % Chg. YoY -8% -16% -18% 9M14 9M15 32.1 Hydro Coefficient – Portugal Hydro Brazil 5.3 27.1 (1.0 = avg. year) -18% 4.4 +3
Slide 11: EBITDA +10%; Adjusted EBITDA +5% supported by EDPR and EDP Brasil
EBITDA +10%; Adjusted EBITDA +5% supported by EDPR and EDP Brasil EDP EBITDA EDP Adjusted (1) EBITDA (€ million) (€ million) +10% +5% €2.991m 2.567 2.447 €2.708m 424 Adjustments 260 Generation & -13% 29% 35% Supply Iberia 29% EDP Renováveis 26% +16% Recurrent 2.447 2.567 EDP Brasil 10% +49% 14% Reg.
Slide 12: Overview of Iberian Market in 9M15
Overview of Iberian Market in 9M15 Electricity Demand and Supply in Iberian Market (1) (TWh) Electricity demand: +2.5% in Spain, +1.3% in Portugal +2.3% in a mix between economic recovery and favourable 219 224 weather CCGT 17 +35% 23 Hydro production: -35% due to hydro coefficient in Coal 39 +27% 5
Slide 13: Electricity Generation in Iberia
Electricity Generation in Iberia EDP Liberalised Generation Portfolio – Production EDP PPA/CMEC Plants in Portugal: market deviation(1) (TWh) (€ million) % Chg. YoY Adjustment Coal Hydro +19% +9% 13.3 88 +2% 7% 80 2 4 11.2 Nuclear 8% 28% -27% Hydro 45% 61 81 48% +38% Coal 41% +246% 18% 19 CCGT 6% 9M
Slide 14: EDP Liberalised Activities Iberia: Market positioning
EDP Liberalised Activities Iberia: Market positioning EBITDA Liberalised Activities in Iberia vs. Hydro Volumes and Pool Price (€ million and €/MWh) Pool Price Spain (€/MWh) EBITDA (€m) Significant weight of hydro in 400 generation mix 49 50 49 300 Long position in sales to final clients vs. own pro
Slide 15: Generation and Supply Iberia (25% EBITDA)
Generation and Supply Iberia (25% EBITDA) Adjusted EBITDA(1) Generation & Supply Iberia (€ million) Liberalised activities Long Term Contracted Generation Liberalised Energy Activities in Iberia(1): -23% (-€84m) -13% Avg. generation cost +32% YoY on lower hydro volumes 849 9M14 performance marked by
Slide 16: Regulated Energy Networks Iberia (27% of EBITDA)
Regulated Energy Networks Iberia (27% of EBITDA) EBITDA Adjusted EBITDA (1) (€ million) (€ million) Gas Iberia Gas Iberia Electricity Spain Electricity Spain Electricity Portugal Electricity Portugal -1% -1% 816 810 721 714 +39% -7% +13% +4% -15% ~0% 9M14 9M15 9M14 9M15 Electricity Portugal: RoRAB d
Slide 17: EDP Renováveis (26% of EBITDA)
EDP Renováveis (26% of EBITDA): EBITDA growth ex one- offs +16% backed by higher prices and capacity additions Installed Capacity Production (2) EBITDA (MW) (GWh) (€ million) Europe and Brazil North America +4% +22% +14% 14,994 782 8,878 14,369 7,774 642 48% +5% 48% +16% 56% 64% 55% 61% +28% +12% 52
Slide 18: Improvements in Brazilian Electricity System in 3Q15
Improvements in Brazilian Electricity System in 3Q15 EDP Brasil: Quarterly Evolution of GSF Losses(2) Hydro reservoirs – Southeast/Center-West Regions (1) (R$m) (%) 200 EDP Brasil GSF losses (R$m) 38.8% 37.4% 37.4% 167 165 PLD (R$/MWh) 1150 36.3% 36.3% 34.3% 2014 32.4% 150 133 124 950 36.0% 36.1% 75
Slide 19: EDP Brasil (22% of EBITDA): Adjusted EBITDA in local currency +25% YoY
EDP Brasil (22% of EBITDA): Adjusted EBITDA in local currency +25% YoY EDP Brasil reported EBITDA EDP Brasil Adjusted(1) EBITDA (BRL million) (BRL million) Capital Gains Generation & Other Distribution Generation & Other Distribution +94% 2.251 +25% 885 1.366 1.094 1.160 720 720 501 +44% 408 501 646
Slide 20: Operating costs: -3% YoY in Iberian business
Operating costs: -3% YoY in Iberian business Operating costs(2): 9M15 vs. 9M14 9M15 YoY Inflation (3) (€ million) (%) Brazil EDPR Iberia +1% 1.120 1.130 9.5% 199 194 -2% 235 269 +15% 686 666 -3% 0.3% -0.5% 9M14 9M15 Portugal Spain Brazil (IPCA) Iberian business: -3%; costs savings on IT & client ser
Slide 21: Net Investments: Focus on long term contracted wind, hydro and regulated networks
Net Investments: Focus on long term contracted wind, hydro and regulated networks Net Investments (1) (€ million) Net 1.108 -4% 1.069 Investments +23% • EDPR: 549MW of wind capacity under construction (mostly US PPAs) • Hydro Portugal: 4 projects in final 1,042 Expansion 733 stage (completion rate a
Slide 22: Portuguese electricity system: Slight tariff surplus in 9M15
Portuguese electricity system: Slight tariff surplus in 9M15; proposal for 2016 reaffirms sustainability Portugal: Electricity System Regulatory Receivables (€bn) Flat YoY 5.3 5.2 ~5.3 4.8 4.9 4.0 4.3 2.4 3.0 3.0 Other 1.9 EDP 2.2 2.4 2.3 2.2 0.5 2012 2013 2014 Set-15 2015E 2016E 2017E 2020E 9M15 20
Slide 23: EDP's regulatory receivables
EDP’s regulatory receivables EDP’s Net Regulatory Receivables (€ million) 2.747 -€58m 2.504 2.446 Portugal (1) 2.422 2.315 2.217 Spain Brazil 264 61 2 44 187 185 Dec-13 Dec-14 Sep-15 Portugal: -€98m YTD (ex ante deficit and other deviations(2): +€553m; securitisations: -€651m) Spain: +€42m YTD, reco
Slide 24: Change in Net Debt 9M15
Change in Net Debt 9M15 Change in Net Debt: Sep-15 vs. Dec-14 (€ billion) +€0.3bn -€0.4bn 17.0 1.3 0.7 16.6 0.7 17.3 0.1 0.4 0.6 2.5 2.4 2.4 Regulatory Receivables 14.5 14.2 14.9 Net Debt Free Cash Regulatory Hybrid Expansion Dividends Net Debt Pecém Net Debt Dec-14 Flow (1) Receivables Capex & Net
Slide 25: Financial Debt profile by currency and maturity
Financial Debt profile by currency and maturity EDP consolidated debt by currency: Sep-15 EDP consolidated debt maturity profile as of Sep-15 (%) (€ billion) EDP SA & EDP Finance BV Hybrid Bond Other Subsidiaries Commercial Paper Avg. Debt Maturity(1): 4.6 years 4.0 USD 3.5 23% 3.0 1% 2.5 PLN 2.0 8%
Slide 26: Financial Liquidity vs. Refinancing Needs
Financial Liquidity vs. Refinancing Needs Sources of funds Use of funds Cash & Equivalents (Sep-15): €1.1bn Refinancing needs in 2016: €2.8bn Available Credit Lines (Sep-15): Bonds maturing in Feb-16 €0.75bn Revolving Credit Facilities €3.75bn Bonds maturing in Jun-16 €0.5bn Other Credit Lines €0.3b
Slide 27: Financial Results
Financial Results Financial Results: 9M15 vs. 9M4 (€m) -€173m Higher net financial interests: penalized by lower avg. EUR/USD (59) (22) (626) (21) ForEx: €46m losses in 9M15 vs. €8m gain (54) (17) in 9M14, mostly related to mark-to-market (453) of USD/EUR and USD/BRL (non-cash) Gains on tariff defic
Slide 28: Net Profit breakdown
Net Profit breakdown (€ million) 9M14 9M15 ∆% ∆ Abs. Adoption of IFRIC 21: changes the accounting EBITDA 2,708 2,991 +10% +284 of levies to the moment in which they are due vs. previous linear accounting over the year; Amortisation, Impairm. 9M14 results restated for comparison purposes 1,036 1,067
Slide 29: IR Contacts
IR Contacts Miguel Viana, Head of IR Sónia Pimpão João Machado Maria João Matias Sérgio Tavares Noélia Rocha E-mail: ir@edp.pt Phone: +351 210012834 Visit EDP Website Next Events Oct 29th: Release of 9M15 Results Site: www.edp.pt Nov 4th: Roadshow in Boston (Macquarie) Nov 5th: Roadshow in Chicago (
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