Edp S.a. · EURONEXT:EDP

Edp — Energias de Portugal — Q1 2016 Earnings Presentation

19 slides from Edp's earnings presentation, May 5, 2016

  1. Slide 1: Results Presentation 1Q16

    <5 Results Presentation 1Q16 London, May 5th, 2016

  2. Slide 2: 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 5th of May 2016 and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this presentation

  3. Slide 3: EBITDA +14% to €1,130m

    EBITDA +14% to €1,130m Adjusted EBITDA: +17% to €1,069m; adverse ForEx impact: -5% YoY Iberian operations adjusted EBITDA +17% to €569m Strong hydro volumes in 1Q16 and good energy management results EDPR EBITDA +29% to €379m +15% on avg. installed capacity; Avg. load factor +4pp YoY EDP Brasil EBIT

  4. Slide 4: Hydro production in Portugal: hydro resources 45% above the historical average in 1Q16

    Hydro Deficit (1-GSF) - Brazil EDP Hydro, Wind and Solar Production (Deviation vs. assured hydro contracted volumes) (TWh) % Chg. YoY +39% -12% -21% 15.8 1.6 Hydro Coefficient – Portugal (Deviation vs. average hydro year) 11.4 1% 45% Hydro Brazil 1.6 6.7 68% Hydro Iberia 4.0 -26% Production 6.4 Wind

  5. Slide 5: Installed capacity +9% YoY

    Installed Capacity Generation Breakdown by Technology (GW) (TWh) +27% +9% 1% 20.9 24.5 -2% 0.4 Other (1) Other(1) 1% 22.4 4.2 Coal 13% 16.5 Coal 12% 0.4 -2% CCGT 15% 0.5 17% 4.3 +13% CCGT 0.4 8.3 Hydro 33% +49% 75% of production Hydro 34% 5.6 Hydro & Wind 70% of capacity Hydro & Wind 36% 38% 30% 7.5

  6. Slide 6: Adj. EBITDA: +17% on portfolio expansion, energy management results and stronger hydro & wind

    EBITDA Breakdown by division (€ million) % Chg. YoY % Chg. YoY based on adjusted EBITDA (2) +14% +17% €1,130m €988m 29% Generation & Supply (1) 24% +38% EDP Brasil 13% +43% 16% EDP Renováveis 30% +29% 34% Regulated Networks Iberia 33% -28% 21% 1Q15 1Q16 Adj. EBITDA: +17% on portfolio expansion, ener

  7. Slide 7: Operating costs: 1Q16 vs. 1Q15

    Operating costs(1): 1Q16 vs. 1Q15 1Q16 YoY Inflation(2) (€ million) (%) Brazil EDPR Iberia -0.3% In BRL, ex-Pecém: 9.4% 368 367 +5% (-4% real terms) 65 -11% 58 EDPR Opex/MW: 82 +12% 92 -0.4% 0.6% 220 -2% 216 -0.4% 1Q15 1Q16 Portugal Spain Brazil (IPCA)  Iberia: -2%, reflecting costs savings on seve

  8. Slide 8: Results Analysis

    rede Results Analysis

  9. Slide 9: +85% hydro production replaces thermal production, particularly coal (-35%)

    EDP Liberalised Generation – Production EDP PPA/CMEC Plants in Portugal: market deviation(1) (TWh) (€ million) % Chg. YoY Adjustment Coal Hydro +20% 5.7 -5% +13% 8% 64 4.7 61 4 CCGT 9% 24% 4 -35% 25 Coal 44% +85% 62% 56 Hydro 41% 36 Nuclear 0% 7% 6% 1Q15 1Q16 1Q15 1Q16 +85% hydro production replaces

  10. Slide 10: 1Q16 marked by strong hydro resources and good energy management results

    EBITDA Generation & Supply Iberia (€ million) Liberalised activities EBITDA Generation & Supply Iberia: +€91m YoY LT Contracted Generation +38%  Avg. generation cost -46% on higher hydro 332 contribution 240  Mini-hydro special regime: production +88% YoY 199 +128% 87  Delivery on new hydro capac

  11. Slide 11: Regulated networks EBITDA

    EBITDA - Regulated networks Adjusted EBITDA (1) - Regulated networks (€ million) (€ million) Gas Iberia Electricity Spain Electricity Portugal Gas Iberia Electricity Spain Electricity Portugal -28% 324 -2% 239 234 -62% 234 -7% -25% -7% 0% 0% 1Q15 1Q16 1Q15 1Q16  Electricity Portugal: Stable RoRAB a

  12. Slide 12: EDPR: North America capacity increase and strong wind resources

    EDPR Installed Capacity EDPR Wind Power Production EDPR EBITDA (GW) (TWh) (€ million) Europe and Brazil North America +29% +15% 30% 379 9.4 7.5 8.1 295 5.8 55% +29% 51% 26% 60% +19% 53% 51% 61% +10% 45% +32% 49% 33% 40% 47% 49% 39% 1Q15 1Q16 1Q15 1Q16 1Q15 1Q16  North America: 10% capacity increase

  13. Slide 13: EDP Brasil EBITDA

    EDP Brasil EBITDA EDP Brasil Adjusted(1) EBITDA (BRL million) (BRL million) Capital Gains Generation & Other Distribution Generation & Other Distribution +96% +29% 814 536 416 278 416 184 399 117% 184 399 232 232 -41% 137 137 1Q15 1Q16 1Q15 1Q16  Capital Gains: +R$278m in 1Q16 from sale of Pantanal

  14. Slide 14: Slight increase of system receivables in 1Q16 on strong wind resources and low power prices

    Portugal: Electricity System Regulatory Receivables (€bn) +€0.1bn 5.3 5.2 ~5.3 4.8 Other 2.4 3.0 3.0 2.8 EDP 2.4 2.3 2.2 2.4 2013 2014 2015 1Q16 Demand(1) (YoY Chg.) -1.8% -0.1% +1.1% -0.3% Wind Factor (1.0=avg.) 1.18 1.11 1.01 1.16 Special Regime Premium 66 69 60 70 (€/MWh) Slight increase of syste

  15. Slide 15: EDP's Regulatory Receivables

    EDP’s Regulatory Receivables (€ million) +€91m 2.504 2.477 2.568 Portugal (1) 2.315 2.236 2.420 Spain Brazil 2 70 187 170 77 70 Dec-14 Dec-15 Mar-16  Portugal: +€184m YTD; +€278m from chg. in system debt attributable to EDP and -€94m from securitisations  Brazil: -€93m YTD; in BRL terms -R$417m YT

  16. Slide 16: Net expansion investments include €0.5bn Asset Rotation and TEI proceeds

    Change in Net Debt: Mar-16 vs. Dec-15 (€ billion) -€0.4bn 17.4 -0.3 +0.1 -0.1 -0.1 17.0 Regulatory 2.5 2.6 Receivables 14.9 14.4 Net Debt Free Cash Reg. Receivables Adj. Net Expansion ForEx Net Debt Dec-15 Flow (1) & Securitiz. Investments (2) Mar-16 Net Debt 4.4x 4.2x /EBITDA Adj. Net Debt 3.8x 3.6

  17. Slide 17: Positive impact from decline of average cost of debt to 4.5% in 1Q16

    Financial Results: 1Q16 vs. 1Q15 (€m)  Net interest costs: lower avg. cost of +€28m debt (4.5% in 1Q16 vs. 4.7% in 1Q15) (208) 37 and lower avg. net debt (50) (180) 46  ForEx: Negative impact in 1Q15 from mark-to-market of EUR/USD 13 (18)  Capital gains: €11m in 1Q16 from sale of stake in Tejo En

  18. Slide 18: Income statement 1Q16 vs 1Q15

    (€ million) 1Q15 1Q16 ∆% ∆ Abs. EBITDA 988 1,130 +14% +141 Net Depreciations and Increase of installed capacity: EDPR, Pecém, hydro Portugal 337 369 +9% +32 Provisions EBIT 651 760 +17% +109  Average cost of debt: -20bps to 4.5% Financial Results & (210) (188) -10% +22 Associated Companies  Lower

  19. Slide 19: 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 Site: www.edp.pt May 6th: Roadshow in London (JP Morgan) Link Results & Presentations: May 9th: Roadshow in London (HSBC)

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