Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — 9M12 Earnings Presentation
31 slides from Edp's earnings presentation, Nov 7, 2012
Slide 1: Results Presentation 9M12
Results Presentation 9M12 Lisbon, November 7th, 2012 0
Slide 2: Disclaimer
Disclamer 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 7th of November 2012 and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where thi
Slide 3: 9M12: Highlights of the period
9M12: Highlights of the period EBITDA: €2,742m, -1.2% YoY Brazil (EBITDA -28% YoY) penalised by non-recurrent events in 9M12 Higher energy costs in 9M12: pass-through mostly in 2013; Coal plant delay: commissioning now closer Iberian operations ex-wind power: EBITDA flat YoY Resilient business profi
Slide 4: 9M12: Highlights of the period
9M12: Highlights of the period Strong improvement of credit markets: In Jul-12/Oct-12 EDP raised €2.5bn of LT debt at competitive cost Strong financial liquidity: currently at €5.0bn + €3.0bn commitments in 2013-15 from CTG partnership Regulatory receivables Portugal +€0.9bn in 9M12: €0.3bn above ex
Slide 5: 9M12 Operating Headlines
9M12 Operating Headlines Installed Capacity 9M12 Generation Breakdown by Technology (GW) (%) (1) Wind Hydro CCGT Other +1% CCGT 6% 22.6 22.7 Other (1) 20% 22% 16% 35% 34% 17% 32% 30% 25% 65% Hydro & Wind 31% 32% 59% Hydro & Wind 9M11 9M12 Installed capacity +1% YoY: +0.4GW new hydro; +0.4GW new wind
Slide 6: 9M12 EBITDA: Increasing portfolio diversification
9M12 EBITDA: Increasing portfolio diversification EBITDA Breakdown by Major Subsidiaries: 9M12 vs. 9M11 EBITDA Breakdown by Geography (2): 9M12 vs. (%) 9M11 (%) ∆ % 9M11-12 Rest of Europe 2% +66% 4% 9M11 9M12 Var. % Var. Abs. Brazil 20% -27% 15% USA +24% 9% 7% EDP Brasil 554 397 -28% -157 Spain 25%
Slide 7: EBITDA 9M12: Breakdown by division
EBITDA 9M12: Breakdown by division EBITDA Breakdown by division (€ million) % Chg. YoY -1.2% €2,775m €2,742m Liberalized Activities Iberia 10% 0% 10% EDP Brasil 20% -28% 14% EDP Renováveis 20% +23% 25% 90% Regulated 28% +1% 28% Networks Iberia(1) LT Contracted 22% -2% 22% Generation Iberia 9M11 9M12
Slide 8: Operating costs: Efficiency improvements with Opex/Gross Profit at 27% in 9M12
Operating costs: Efficiency improvements with Opex/Gross Profit(2) at 27% in 9M12 Operating costs (1) : 9M12 vs. 9M11 9M12 YoY Inflation (€ million) (%) Brazil EDPR Iberia +2.9% 1,122 1,154 224 +3% 217 207 230 +11% 5.4% 3.2% 2.4% 698 700 +0.3% (3) 9M11 9M12 Portugal Spain Brazil (IGP-M) Iberia: Oper
Slide 9: Capex: Execution of Selective Growth
Capex: Execution of Selective Growth Consolidated Capex Breakdown(1) (€ million) -11% €1,353m €1,197m Wind Power 516 263 180 New Capacity Brasil 104 Hydro Portugal 237 315 Maintenance 496 439 9M11 9M12 Capex down 11% YoY, following slowdown of wind power capacity expansion Expansion capex is 100% Wi
Slide 10: Net Regulatory Receivables by Sep-12
Net Regulatory Receivables by Sep-12 Regulatory Receivables Portugal hydro coefficient (€ million) (1.0 = avg. year) +€1,009m -64% 2,656 0.98 1,647 2,055 Portugal 1,130 0.35 Spain 514 531 Brazil (1) 70 Dec-11 Sep-12 9M11 9M12 Portugal: +€925m +€686m mostly in line with the increase predefined by the
Slide 11: Change in Net debt
Change in Net debt Change in Net Debt: Sep-12 vs. Dec-11 (€ billion) Regulatory Regulatory Receivables Receivables 0.7 18.2 1.1 16.9 1.5 1.0 2.7 1.6 15.3 15.5 Net Debt Free Cash Flow (1) Regulatory Expansion Capex & Dividends Paid Net Debt Dec-11 Receivables Fin. Investments (2) Sep-12 Adj. Net Debt
Slide 12: Strong improvement in credit market conditions in 3Q12
Strong improvement in credit market conditions in 3Q12 5-Year Credit Default Swaps: Portuguese Government and EDP (bps) EDP privatisation deal and ECB announces the 1,600 EDP/CTG partnership terms of a new Major credit deals of EDP in Jul/Oct-12: programme for future 1,400 Portugal bailout purchase
Slide 13: Net Debt Profile
Net Debt Profile EDP consolidated debt maturity profile Debt by Currency (€ billion) (%) Commercial paper PLN Other subsidiaries(1) Avg. Debt Maturity USD 1% EDP SA + BV Sep-12: 4.0 years 18% Brazil: €45M Project Finance: €69M 8% BRL 73% 3.5 EUR 3.0 2.5 Debt by Interest Rate Term 2.0 (%) 1.5 1.0 Fix
Slide 14: Financial Liquidity position
Financial Liquidity position (€ million) Sources of liquidity (Sep-12) Maximum Number of Instrument Utilised Available Maturity Amount counterparties Revolving Credit Facility 2,000 21 900 1,100 03-11-2015 Domestic Credit Lines 183 8 0 183 Renewable Underwritten CP Programmes 650 3 0 650 Renewable T
Slide 15: Main sources and uses of funds
Main sources and uses of funds Sources of funds Use of funds Cash & Equivalents (Sep-12): €2.2bn Refinancing needs in 4Q12: Bond maturing in Nov-12: €0.8bn Available Credit Lines (Sep-12): €1.9bn Loans maturing in 4Q12: €0.2bn Bank of China 3-Year loan (Oct-12): €0.8bn Refinancing needs in 2013: RCF
Slide 16: Net Profit breakdown
Net Profit breakdown (€ million) 9M11 9M12 ∆% Combined impact from increase of wind farms’ EBITDA 2,775 2,742 -1% accounting useful life (from 20 to 25 years) and Net Depreciations and new capacity in operation (wind and hydro) 1,055 1,064 +1% Provisions EBIT 1,720 1,679 -2% Cost of debt: 4.0% in 9M
Slide 17: Business Areas
Business Areas
Slide 18: Iberian Electricity & Gas Markets
Iberian Electricity & Gas Markets Iberian Market % Weight in Iberia in 9M12 Electricity Demand Gas Demand 100% 16% 84% 100% 12% 88% Iberian Iberian Market Portugal Spain Market Portugal Spain -3.7% -1.0% -5.2% -1.4% -14.6% -3.2% Electricity Iberia: In Portugal significant decline in residentials/SME
Slide 19: Long Term Contracted Generation Iberia (22% of EBITDA)
Long Term Contracted Generation Iberia (22% of EBITDA) EBITDA LT Contracted Generation (€ million) PPA/CMEC Special regime -2% 623 608 -29% 0% 9M11 9M12 PPA/CMEC: Flat EBITDA as positive impact from higher inflation, high availability rates and commissioning of DeNOx facilities was fully offset by n
Slide 20: Liberalised Energy Activities Iberia (10% EBITDA)
Liberalised Energy Activities Iberia (10% EBITDA) EDP Liberalised Power Plants Iberia – Production Coal vs. CCGT – Load factors in 9M11 and 9M12 (TWh) (%) 9M11 9M12 -20% 11.8 50 9.4 Nuclear 7% 9% Hydro 12% 39 15% Coal 32% 24 52% CCGT 49% 9 24% Coal CCGT 9M11 9M12 Production 20% lower due to very low
Slide 21: Liberalised Energy Activities Iberia (10% EBITDA)
Liberalised Energy Activities Iberia (10% EBITDA) EBITDA Liberalised Activities in Iberian Market (€ million) +0.2% 279 280 9M11 9M12 Avg. Selling price(1) (€/MWh) 56.6 +10% 62.4 Avg. Sourcing cost (€/MWh) 48.9 +4% 51.1 Avg. Unit margin(2) (€/MWh) 8.7 +18% 10.2 Volumes sold 36.3 -10% 32.5 EBITDA: 18
Slide 22: Regulated Energy Networks Iberia (28% of EBITDA)
Regulated Energy Networks Iberia (28% of EBITDA) EBITDA Adjusted EBITDA (1) (€ million) (€ million) Gas Iberia Gas Iberia Electricity Spain Electricity Spain Electricity Portugal Electricity Portugal +1.2% +5% 800 809 781 743 +6% +3% -20% -14% +5% +10% 9M11 9M12 9M11 9M12 Electricity Portugal: Adjus
Slide 23: Regulated Energy Networks Iberia: Higher efficiency with improvement on quality of service
Regulated Energy Networks Iberia: Higher efficiency with improvement on quality of service Opex(1)/Network Km Opex(1)/Connected customers Equivalent Interruption Time(2) (€th) (€) (minutes) -3% -2% -28% 2.34 53 2.26 75.0 73.3 38 9M11 9M12 9M11 9M12 9M11 9M12 Improvement of Key efficiency Ratios in n
Slide 24: Portugal: Control over clients bad debts
Portugal: Control over clients bad debts Average collecting period Overdue debt from clients (1) (Days) (€ million; %) Overdue Debt from Clients Overdue Debt from Clients/Annual Sales 266 272 254 32 32 32 31 32 233 28 30 222 226 229 28 29 29 209 214 211 28 200 4.7% 5.0% 4.6% 4.8% 4.4% 4.2% 4.2% 4.5%
Slide 25: EDP Renováveis (25% of EBITDA): Strong growth driven by new installed capacity
EDP Renováveis (25% of EBITDA): Strong growth driven by new installed capacity Installed Capacity EBITDA (MW) (€ million) 9M12 7.388 9M12 675 YoY % Chg + 6% YoY % Chg + 23% 1% 2% 11% 14% 8% 35% 13% 48% 31% 36% Installed Capacity +429MW: 75% of additions outside Iberia (+244MW in US and + 79MW Rest o
Slide 26: EDP Brasil (14% of EBITDA)
EDP Brasil (14% of EBITDA) EBITDA -23% YoY in local currency, non-recurrent events in 9M12 EDP Brasil EBITDA EDP Brasil Adjusted EBITDA (1) (BRL million) (BRL million) Generation & Other Distribution Generation & Other Distribution -23% -6% 1,272 1,241 1,171 976 -22% -50% +9% +14% 9M11 9M12 9M11 9M1
Slide 27: Outlook
Outlook
Slide 28: Regulatory receivables in Portugal
Regulatory receivables in Portugal Regulatory receivables of the Portuguese electricity system ERSE’s Proposal for 2013 tariffs: (€bn) Regulatory receivables already securitized Avg. tariff increase +2.8% (1.0% inflation, +1.8% real) Regulatory receivables owed to EDP 3.8 Liberalization incentive: A
Slide 29: EBITDA Outlook
EBITDA Outlook No capacity payments in Portugal after May-12 (-€27m YoY in 2012, -€19m YoY in 2013) Liberalized Activities 10% 2013: Potential negative impact from proposal on new generation taxes in Spain Iberia 2013: No additional CO2 free allowances, maintenance of tough market for gas/CCGTs Iber
Slide 30: A resilient business model in a challenging environment
A resilient business model in a challenging environment EBITDA: -1.2% (including negative one-offs in Brazil) Sound Operating Cost of debt: flat at 4.0% (better than expected on lower Euribor rates and refinancing costs) Performance Net Profit/EPS: -3.5% Capex: -11% YoY in 9M12 on lower expansion ca
Slide 31: IR Contacts, Visit EDP Website, Next Events
IR Contacts Miguel Viana, Head of IR Sónia Pimpão Elisabete Ferreira Ricardo Farinha Pedro Coelhas Noélia Rocha E-mail: ir@edp.pt Phone: +351 210012834 Visit EDP Website Next Events November 13th-14th: London UBS European Conference Site: www.edp.pt November 15th: Roadshow London (BPI) Link Results
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