Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Q1 2020 Earnings Presentation
30 slides from Edp's earnings presentation, May 7, 2020
Slide 1: 1Q20 Results Presentation
edp 1Q20 Results Presentation Lisbon, May 7‘, 2020
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 this date and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this presentation is made, o
Slide 3: 1Q20 results highlights
EBITDA: +6% YoY Renewables production +16%: Hydro recovery vs. very weak 1Q19, wind resources below avg. Sound results energy management EBITDA Brazil: Negative forex impact (BRL vs. EUR: -13%) Net Profit: +45% YoY Recurring Net Profit +51% to €252 Mn Net Profit 1Q20 includes €45 Mn non-recurring co
Slide 4: Results Analysis
Results Analysis
Slide 5: Hydro and wind production
EDP Hydro production in Iberia EDP Wind production TWh TWh +2% YoY, if excluding 0.8TWh production in 1Q19 from wind farms subject to asset rotation 4.9 8.4 7.7 2.7 1Q19 1Q20 1Q19 1Q20 Hydro resources Wind resources vs. LT Avg.1 vs. LT Avg. (P50) Hydro reservoir YE1 (TWh) 1) Source: REN. Hydro resou
Slide 6: Electricity generation in 1Q20 and wind capacity evolution
Electricity generation in 1Q20 Wind Capacity evolution YoY TWh GW, Mar-20 0.7 Coal Other 6% 2% 0.8 GW net CCGT capacity 12% under construction Solar 0% as of Mar-20 42% Wind 1.3 37% -0.6 Hydro Built-out Asset rotation ∆ YoY renewables 1) EBITDA + Equity capacity RESULTS PRESENTATION 6
Slide 7: EBITDA 1Q20
EBITDA1 1Q20 € Mn; YoY growth,% ∆ YoY 980 927 -€47 Mn Wind & Solar 549 +€65 Mn Hydro Iberia Renewables 559 -€28 Mn Hydro Brazil -€5 Mn Iberia 237 -€1 Mn Brazil Networks 242 Client solutions & EM 203 +€82 Mn Iberia Other/adjust 117 +€4 Mn Brazil 9 -9 1Q19 1Q20 1) FX Impact on EBITDA: -€21 Mn (BRL), +
Slide 8: EBITDA – Wind & Solar
EBITDA – Wind & Solar € Mn; YoY growth,% 387 1Q19 1Q20 YoY 340 Avg. Installed Capacity1, GW Europe 233 179 Production vs. LT Avg. (P50), % Electricity Production, TWh Avg. selling price, €/MWh North America 147 159 Brazil & Other 7 2 1Q19 1Q20 1) Considers capacity at EBITDA level RESULTS PRESENTATI
Slide 9: EBITDA – Hydro
EBITDA – Hydro € Mn; YoY growth, % 209 1Q19 1Q20 YoY 172 Hydro Production1, TWh Avg selling price2, €/MWh Iberia 112 177 1Q19 1Q20 YoY PLD, R$/MWh Brazil 60 32 GSF 1Q19 1Q20 1) Excludes small hydro plants | 2) Does not consider results from hedging RESULTS PRESENTATION 9
Slide 10: EBITDA – Networks
EBITDA – Networks € Mn; YoY growth,% 1Q19 1Q20 YoY Return on RAB Portugal 1, % 242 237 RAB Iberia2, € Mn Opex Iberia, € Mn Portugal 131 126 1Q19 1Q20 YoY Transmission EBITDA, R$ Bn Spain 34 34 Distribution EBITDA, R$ Bn Brazil 77 76 Electricity distributed, TWh 1Q19 1Q20 1) RoRAB of HV/MV | 2) Accou
Slide 11: EBITDA – Client Solutions & Energy Management
EBITDA – Client Solutions & Energy Management € Mn; YoY growth,% ∆ YoY 203 Good results on energy management in Iberia supported by forward contracting of energy prices and thermal spreads and benefiting from increase of volatility in energy markets 117 145 Coal production -77% YoY (avg. load factor
Slide 12: Operating costs (Opex)
Weight on Opex Operations Indicator YoY Change Main drivers Iberia Opex1 Strong performance in 1Q19 (-3% YoY) EDP Brasil Avg. inflation: +3.8%2 Opex1 excl. growth and forex EDPR Strong activity expansion with 1.3 GW Adj. Core Opex/MW 4 under construction Avg inflation in our geographies3: +1.8% 1 Op
Slide 13: Change in Net Debt: Mar-20 vs. Dec-19
Change in Net Debt: Mar-20 vs. Dec-19, € Bn +68% YoY Change in regulatory receivables: +€0.1 Bn 13.8 Anticipated sale of 2020 tariff deficit: -€0.6 Bn -0.7 0.1 -0.5 12.7 -0.1 +€0.4 Bn expansion investment (82% renewables, 18% networks) -€0.3 Bn Asset Rotation & TEIs -€0.2 Bn forex impact Net Debt Re
Slide 14: Net Financial Costs: 1Q20 vs. 1Q19
Net Financial Costs: 1Q20 vs. 1Q19 Bonds issued € Mn Amount Coupon Maturity -20% Sep-19 €600 Mn 0.70% 2026 206 Jan-20 (hybrid) €750 Mn 1.70% 2080 186 180 6 Apr-20 €750 Mn 1.63% 2027 61 35 144 Bonds matured / repurchased Amount Coupon Oct-19 USD 637 Mn 4.90% Jan-20 USD 583 Mn 4.13% 1Q20 (hybrid) €750
Slide 15: Financial liquidity and debt maturity profile as of Mar-20
Financial liquidity as of Mar-20 EDP consolidated debt maturity profile as of Mar-20 € Bn € Bn EDP Brasil EDP SA & EDP Finance BV and Other 2.8 Cash & Equivalents: 2.1 2.2 Of which: 1.7 1.5 1.4 1.3 1.4 Available Credit Lines: • >90% due in 2024/25 • >25 counterparties 0.6 Total Liquidity 2020 2021 2
Slide 16: Reported and Recurring Net Profit 1Q20
Reported Net Profit 1Q20 Recurring Net Profit1 € Mn ∆ YoY € Mn EBITDA 980 53 252 D&A and -5 383 Provisions EBIT 597 47 167 Financial Results 206 -20 Income Taxes 92 6 Extraordinary 4 63 Energy Tax Non-controlling 90 8 interest 1Q19 1Q20 Net Profit 146 +45 1) One-offs 1Q19: extraordinary energy tax (
Slide 17: Covid-19 Update
Covid-19 Update
Slide 18: Strategy and financial priorities
Focus on LT contracted competitive renewables (wind & solar), regulated networks New investments with limited exposure to energy prices and demand volatility Strict risk criteria: avg. contract maturity 15 years, contracted NPV >60% €6 Bn target of proceeds in 2019-22 from asset rotations (€4 Bn) an
Slide 19: Commitment through safety and business continuity
We take on the commitment We take on the commitment by providing safety and through the supply of energy business continuity and special attention to those on the front line We take on the commitment We take on the commitment by contributing to maintain through the investment in the value chain, pro
Slide 20: Employee safety and remote working measures
~100% of office staff (ex-dispatch centers) Supply of personal protection equipment 5x increase in interactions through MS Teams Reinforcement of cleaning and desinfection Non-overlapping teams RESULTS PRESENTATION 20
Slide 21: Community and supplier support
Non-Exhaustive ~€11 Mn1 support in most of our geographies, such as: Medical equipment donated to Public Health System in PT & BR EU program for development of vaccine and treatments Funds to vulnerable communities in Brazil and the US Electronic equipment to schools in Spain Innovation €100 Mn rela
Slide 22: Electricity supply portfolio and measures implemented
Electricity Supply Portfolio Measures implemented TWh, 2019 Suspension of supply cuts during lockdown period B2B 62% clients with direct 57% B2C debit Flexibility of payment schedules and methods Reinforcement of digital capabilities – renewed Customer Area in Portugal B2C Promotion of digital means
Slide 23: Electricity demand impact in Portugal, Spain and Brazil
Weekly changes in distributed energy in Portugal Electricity demand Jan-20/Apr-20: YoY change4 % YoY % YoY Residentials1 SMEs2 Corporates3 Higher weight of residential 20% -3% demand in consumption mix 10% 0% Earlier start and more severe -10% -7% restrictions of lockdown -20% -30% EDP SP and ES reg
Slide 24: Hedging position 2020 and 2021
Hedging position: Apr-20 to Dec-20 Hedging position: 2021 TWh TWh ~100% ~19 B2C ~12 TWh/year, ~15 Baseload low churn rate -3.6 TWh due to hydro disposal Thermal spreads ~60% Expected electricity Contracted Expected electricity Contracted production electricity sales production electricity sales Avg
Slide 25: EDP Brasil ring-fenced financial policy
Ring-fenced financial policy: funding in local currency Conservative leverage: net debt/EBITDA ~2.0x R$3 Bn liquidity reinforcement: debt refinancing, TOTEX, etc. Growth focused on transmission and LT contracted renewables: No exposure to energy markets, stable revenues inflation updated Integrated
Slide 26: Disposals plan and asset rotation
Net Debt1 / EBITDA Disposals plan 6 hydro plants in Portugal (€2.2 Bn): EC approval granted on March 9th; national regulatory requests already submitted; carve out and transition 4.0x agreements in final stage; financial closing expected in 2H20 3.4x Other complementary options may be considered: Ot
Slide 27: Capacity additions 2020E and recent developments
Capacity additions 2020E Recent developments EBITDA + Equity GW Construction and supply chain disruptions that can lead to potential COD delays in 2020, however 0.2 without impact in projects’ fundamentals 0.2 Medium-term execution on track with additional 0.5 GW secured YTD: 0.1 1.0 Mexico: 200 MW
Slide 28: Green recovery
Energy Transition Support to (among others): Favorable context: Clean, reliable and affordable energy Competitiveness of renewables and other low carbon technologies Just Transition Broad EU support (political, businesses, civil Circular economy society) Biodiversity Leading to: Job creation EU Gree
Slide 29: Key takeaways
83% of 7 GW target additions in renewables for 2019-22 already with LT contracts 63% of R$3.9 Bn transmission investments in Brazil already executed ~55% of the €6 Bn combined disposals + asset rotation target proceeds for 2019-2022 already executed or agreed/pending financial closing Net debt/EBITD
Slide 30: IR Contacts and Next Events
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Next Events May 11th-18th: Virtual Roadshow Jun 2nd-3rd: RBC Virtual Conference Jul 30th: 1H20 Results May 18th-19th: Goldman Sachs Virtual Conference Jun 3rd-4th: Credit Suisse Virtual Conference Jun 4th: Kepler Virtual ESG Con
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