Redes Energeticas Nacionais Sa · EURONEXT:RENE
Redes Energeticas Nacionais Sa — REN - Redes Energéticas Nacionais — H1 2013 Earnings Presentation
17 slides from Redes Energeticas Nacionais Sa's earnings presentation, Aug 1, 2013
Slide 1: Results Presentation 1H 2013
RESULTS PRESENTATION 1H 2013 August 1st, 2013 1
Slide 2: 1H13 Highlights
1H13 Highlights EBITDA stood at €259.9M, slightly below 1H12 (-0.7%). This is mainly due to the decrease in electricity’s RAB remuneration (-€11.9M, -12.1%), as a consequence of a decrease in electricity’s base rate of return (down from 9.76% to 8.03% y.o.y.); Opex decreased by €2.3M (-4.2%) against
Slide 3: Main financial indicators 1H13
Main financial indicators 1H13 €M 1H12 1H13 Δ% Δ Abs. EBITDA 261.7 259.9 -0.7% -1.8 Net Financial -67.2 -65.7 2.1% 1.4 Income Net Income 70.6 64.1 -9.3% -6.5 Recurrent Net 65.0 60.3 -7.2% -4.7 Income Average RAB 3,320.2 3,416.4 2.9% 96.1 CAPEX 74.9 58.9 -21.4% -16.0 Net Debt 2,452.2 2,499.4 1.9% 47.
Slide 4: Transfers to RAB decreased by €113.6M
Transfers to RAB decreased by €113.6M 1H12 impacted by the LNG terminal project conclusion CAPEX TRANSFERS TO RAB -16.0€M -113.6€M (-21.4%) (-92.9%) 74.9 122.3 0.1 22.8 58.9 0.1 11.9 102.6 52.0 46.9 Other Natural gas 8.7 19.7 Electricity 8.0 0.7 1H12 1H13 1H12 1H13 4
Slide 5: Portugal's perceived sovereign debt risk has decreased despite the recent political uncertainty
Portugal’s perceived sovereign debt risk has decreased despite the recent political uncertainty PT 10Y Treasury Bond Yields(1) and PT 5Y CDS Base RoR Electricity Gas(1) 1H13 8.03% 8.00% 1H12 9.76% 780 (RoR 9%) 01 Oct Source: Bloomberg CDS values have dropped as a result of an improvement in Portugal
Slide 6: Return on RAB decreased
Return on RAB decreased due to the evolution of RoR and despite the increase in the asset base RAB REMUNERATION RAB REMUNERATION ELECTRICITY (ex. land) NATURAL GAS (ex. tariff smoothing effect) (€M) (€M) Impact of the increase €-11.9M +€4.1M in asset base by €95M (-12.1%) to €1,998M. +€0.6M (+1.4%)
Slide 7: Average RAB grew by 2.9%
Average RAB grew by 2.9% As usual, with an increasing weight of premium RoR assets RoR 8.9%1 2.8% 8.0% 8.0% 9.5% 7.9%1 99 3,416 3,320 -14 15 -4 RAB Average RAB Lands Natural gas Electricity Electricity Average RAB 1H12 without premium with premium 1H13 1) RoR is equal to the specific remuneration, d
Slide 8: OPEX down €2.3M
OPEX down €2.3M OPERATIONAL COSTS (€M) -2.3€M -5.4 (-4.2%) 54.1 (-23.1%) 2.3 -1.2 (n.m.) (-17.0%) 2.1 51.8 (8.0%) OPEX Δ External Supplies Δ Personnel 2012 Budget Δ Other OPEX 1H12 and Services Costs (1) law impact Operational Costs 1H13 (1) Includes €1.9M due to the change in actuarial assumptions
Slide 9: Core OPEX slightly increased by 3.3%
Core OPEX slightly increased by 3.3% Mainly due to actuarial assumptions and the reinstatement of the CLA CORE OPEX (€M) 54.1 -4.8 -1.4 -0.1 0.0 -4.4 43.5 1H12 OPEX System Costs with NG Forest Overhead lines Costs Core OPEX services and transportation clearing deviation with ERSE cross-border costs
Slide 10: EBITDA decreased slightly by 0.7%
EBITDA decreased slightly by 0.7% (€M) -1.8€M (-0.7%) -13.7 261.7 (-9.9%) 6.6 (32.1%) 259.9 4.8 (n.m.) 3.1 -0.8 (3.6%) (-17.4%) -1.7 (-12.3%) EBITDA Δ Return Δ Recovery of Δ Hydro Δ Own works Δ Interest on Δ Other EBITDA 1H12 on RAB (1) depreciation land remun. tariff deviation 1H13 (1) Includes Δ-€
Slide 11: Below EBITDA, financial costs improved slightly
Below EBITDA, financial costs improved slightly DEPRECIATION NET FINANCIAL INCOME TAXES(1) (€M) (€M) (€M) +2.9€M +3.3€M (+3.0%) (+12.2%) 100.0 +1.4€M 30.2 97.1 (2.1%) 26.9 -67.2 -65.7 1H12 1H13 1H12 1H13 1H12 1H13 (1) 1H12 includes a non-recurrent effect of -5,6M€ 11
Slide 12: Net Income down by 9.3% (-€6.5M)
Net Income down by 9.3% (-€6.5M) (€M) -6.5€M (-9.3%) -1.8 -4.8 70.6 (-0.7%) (-2.5%) 64.1 Net Income Δ EBITDA Δ Below EBITDA Net Income 1H12 1H13 12
Slide 13: Net debt started to decrease in 1H13
Net debt started to decrease in 1H13 NET DEBT (€M) -13.0€M (-0.5%) 2,512 -233 88 -25 6 2,499 75 76 Dec Operating Capex Interest (net) Dividends Tariff Other 1H 2012 Cash Flow (payments) (received- deviations 2013 paid) The average cost of debt was 5.65% (5.70% in 2012); Net debt/EBITDA slightly impr
Slide 14: Main Conclusions
MAIN CONCLUSIONS REN’s operational results were in line with expectations, displaying a decrease due to the asymmetry of the impact of interest rate reductions in the revenue and in the cost sides of the P&L (impact on revenues is immediate while impact on financial costs is delayed); The average co
Slide 15: Visit our web site or contact us
Visit our web site at www.ren.pt or contact us: Ana Fernandes – Head of IR Alexandra Martins Telma Mendes Av. EUA, 55 1749-061 Lisboa Telephone: +351 210 013 546 ir@ren.pt 15
Slide 16: Disclaimer
Disclaimer This presentation and all materials, documents and information used therein or distributed to investors in the context of this presentation do not constitute, or form part of, a public offer, private placement or solicitation of any kind by REN, or by any of REN’s shareholders, to sell or
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