Edp S.a. · EURONEXT:EDP

Edp — Energias de Portugal — Q1 2014 Earnings Presentation

23 slides from Edp's earnings presentation, May 14, 2014

  1. Slide 1: Results Presentation 1Q14

    Results Presentation 1Q14 London, May 14th, 2014 0

  2. 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 14th of May 2014 and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this p

  3. Slide 3: 1Q14: Highlights of the period

    1Q14: Highlights of the period EBITDA 1Q14: €1,030m, -5% YoY EBITDA flat YoY excluding €56m one-off gain in 1Q13; ForEx impact: -€33m Iberian operations ex-wind: EBITDA +4% YoY impacted by strong hydro volumes, good energy management and tight cost control (Opex -1% YoY), despite adverse regulatory

  4. Slide 4: 1Q14: Highlights of the period

    1Q14: Highlights of the period Regulatory receivables: +€255m vs. Dec-13 to €3.0bn by Mar-14 Tariff deficit securitisations in Portugal: cash proceeds of €138m in 1Q14, €750m in Apr-14 Net Investments(1): -11% at €245m Execution of new hydro capacity in Portugal and wind capacity outside of Iberia N

  5. Slide 5: 1Q14 Operating Headlines: Hydro & wind accounted for 85% of power production

    1Q14 Operating Headlines: Hydro & wind accounted for 85% of EDP’s 1Q14 power production Installed Capacity Generation Breakdown by Technology (GW) (TWh) +1% +6% 21.9 22.1 18.0 17.0 Other (1) Other(1) 1% -22% 0.5 2% 0.6 Coal 12% 12% 2.1 Coal -32% 0.2 CCGT 3.1 17% 17% -53% CCGT 0.3 9.2 Hydro 35% 7.4 +

  6. Slide 6: EBITDA 1Q14: Breakdown by division

    EBITDA 1Q14: Breakdown by division EBITDA Breakdown by division (€ million) % Chg. YoY -5% €1,086m Liberalized Activities €1,030m 10% Iberia +73% 19% EDP Brasil 16% -29% 12% EDP Renováveis 29% -9% 28% Regulated Networks 26% -14% Iberia (1) 24% LT Contracted Generation 18% -9% 17% Iberia 1Q13 1Q14 EB

  7. Slide 7: Operating costs: Opex/Gross Profit at 24% in 1Q14

    Operating costs: Opex/Gross Profit(1) at 24% in 1Q14 Operating costs (2) : 1Q14 vs. 1Q13 1Q14 YoY Inflation (3) (€ million) (%) Brazil EDPR Iberia -4% 382 366 7.3% 73 -16% 61 77 76 -1% 231 229 -1% 0.8% 0.2% 1Q13 1Q14 Portugal Spain Brazil (IGP-M)  Iberia: Operating costs -1% YoY  EDPR: Operating c

  8. Slide 8: Net Investments: Execution of Selective Growth

    Net Investments: Execution of Selective Growth Net Investments breakdown by division (1) (€ million) -11% €274m Other 23 Distribution Brazil 17 €245m Generation & Other Brazil 60 20 22 6 EDP Renováveis 59 47 Iberian Regulated Networks 72 70 Expansion Hydro Portugal 134 118 -38 Cash Grant -91 Sale of

  9. Slide 9: Portuguese Electricity System: Regulatory receivables

    Portuguese Electricity System: Regulatory receivables Regulatory receivables in the Portuguese electricity system (€bn) Owed to Financial Investors (Securitized) Owed to EDP +0.8 +0.2 4.8 5.0 +0.3 +0.1 +0.1 4.0 +0.3 2.4 2.4 1.9 2.2 2.4 2.7 2012 1Q13 2Q13 3Q13 4Q13 2013 1Q14 Demand growth (%) -2.8% -

  10. Slide 10: EDP's net regulatory receivables by Mar-14

    EDP’s net regulatory receivables by Mar-14 EDP’s Regulatory Receivables (€ million) +€255m 3,023 3,003 2,747 Portugal (2) 2,589 2,422 2,675 Spain (3) 324 264 259 Brazil (1) 110 61 69 Mar-13 Dec-13 Mar-14 Portugal: +€253m in 1Q14 (tariff deviations attributable to EDP: +€391m; securitisations done:-€

  11. Slide 11: Change in Net debt

    Change in Net debt Change in Net Debt: Mar-14 vs. Dec-13 (€ billion) Regulatory 0% Receivables 17.1 0.6 17.1 0.4 0.2 2.7 3.0 14.3 14.0 Net Debt Free Cash Regulatory Expansion Net Debt Dec-13 Flow (1) Receivables and Capex & Mar-14 Securitizations (3) Net Invest. (2) Net debt flat even following a €0

  12. Slide 12: Net Profit breakdown

    Net Profit breakdown (€ million) 1Q13 1Q14 ∆% ∆ Abs. EBITDA 1,086 1,030 -5% -56 Net Depreciations and 354 331 -6% -23 Provisions EBIT 733 699 -5% -33 Cost of debt: From 4.2% in 1Q13 to 4.6% in Financial Results & 1Q14 (165) (135) -18% +30 Associated Companies (1) Income Taxes 159 186 +17% +27 Non-co

  13. Slide 13: Business Areas

    Business Areas

  14. Slide 14: Weather and market conditions in Iberia

    Weather and market conditions in Iberia Hydro & Mini-Hydro Power Production – Portugal (1) Avg. Pool Price in Spain (TWh) (€/MWh) Hydro Coefficient +41% 40.3 6.8 26.1 4.8 1Q13 1Q14 1Q13 1Q14 1.24 1.57 Portugal wind production factor EDP: electricity production as % of sales to clients (1.0 = avg. ye

  15. Slide 15: Iberia: Electricity and Thermal power demand

    Iberia: Electricity and Thermal power demand Electricity Demand in Iberian Market Thermal Power Production in Iberian market (∆% YoY) (TWh) % Weight in Iberia in 1Q14 -37% 16.0 -1.3 100% 17% 83% -5.8 Iberian +1.7 -0.4 10.1 Market Portugal Spain 0.7% -1.7% -2.2% 1Q13 Demand Hydro Chg. Special Nuclear

  16. Slide 16: Liberalised Energy Activities Iberia (19% EBITDA)

    Liberalised Energy Activities Iberia (19% EBITDA) EDP Liberalised Power Plants Iberia – Production EDP Coal vs. CCGT – Load factors in 1Q13 and 1Q14 (TWh) (%) 1Q13 1Q14 +15% 4.2 3.6 8% 43 0% Nuclear 9% Hydro 44% +77% 67% 27 Coal 38% -37% 21% 4 -53% 4% 2 CCGT 9% 1Q13 1Q14 Coal CCGT Production +15%; h

  17. Slide 17: Liberalised Energy Activities Iberia (19% EBITDA)

    Liberalised Energy Activities Iberia (19% EBITDA) EBITDA Liberalised Activities in Iberian Market Lower Electricity sourcing costs along with (€ million) long position in clients  3 plants transferred from LT contracted: +1.1TWh in 1Q14 +73%  Average generation cost -51% YoY on higher weight of hy

  18. Slide 18: Long Term Contracted Generation Iberia (17% of EBITDA)

    Long Term Contracted Generation Iberia (17% of EBITDA) EBITDA LT Contracted Generation (€ million) PPA/CMEC Special regime -9% 194 176 -16% -8% 1Q13 1Q14  PPA/CMEC: transfer of 3 hydro plants to our merchant portfolio (end of PPAs, gross profit 1Q13: €14m)  Special regime: production outage of sev

  19. Slide 19: Regulated Energy Networks Iberia (24% of EBITDA)

    Regulated Energy Networks Iberia (24% of EBITDA) EBITDA Adjusted EBITDA (1) (€ million) (€ million) Gas Iberia Gas Iberia Electricity Spain Electricity Spain Electricity Portugal Electricity Portugal -15% +5% 290 245 -50% 245 234 -2% -11% -11% 11% 11% 1Q13 1Q14 1Q13 1Q14  Electricity Portugal: Tigh

  20. Slide 20: EDP Renováveis (28% of EBITDA): Growth from capacity additions mitigated by regulatory cuts in Spain

    EDP Renováveis (28% of EBITDA): Growth from capacity additions mitigated by regulatory cuts in Spain Installed Capacity Wind Power Production EBITDA (MW) (GWh) (€ million) Iberia North America Other (1) -9% +10% +5% 317 6,112 289 7,762 7,395 5,542 38% 47% -18% 36% +5% 42% 38% +0% 40% 15% 19% +41% 14

  21. Slide 21: EDP Brasil (12% of EBITDA)

    EDP Brasil (12% of EBITDA) EBITDA -12% YoY in local currency EDP Brasil EBITDA EDP Brasil Adjusted(1) EBITDA (BRL million) (BRL million) Generation & Other Distribution Generation & Other Distribution -12% -16% 468 410 510 161 428 -12% 142 203 -22% 159 307 -12% 269 307 -12% 269 1Q13 1Q14 1Q13 1Q14 E

  22. Slide 22: A resilient business model in a challenging environment

    A resilient business model in a challenging environment Resilient  EBITDA -5% and Net Profit -12% performance  Comparison YoY impacted by €56m one-off gain at EBITDA level in 1Q13 enhanced by diversification  Improving efficiency: OPEX/Gross profit of 24% vs. 25% in 1Q13 Profitable Growth  Expan

  23. Slide 23: IR Contacts

    IR Contacts Miguel Viana, Head of IR Sónia Pimpão Elisabete Ferreira Ricardo Farinha João Machado Noélia Rocha E-mail: ir@edp.pt Phone: +351 210012834 Visit EDP Website Next Events Site: www.edp.pt May 14th: EDP Investor Day - London Link Results & Presentations: May 15th and May 20th-21st: Roadhow

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