Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Q1 2013 Earnings Presentation
36 slides from Edp's earnings presentation, May 10, 2013
Slide 1: Results Presentation 1Q13
Results Presentation 1Q13 Lisbon, May 10th, 2013 0
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 10th of May 2013 and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this p
Slide 3: 1Q13: Highlights of the period
1Q13: Highlights of the period EBITDA: €1,072m, +7% YoY Supported by EDPR and Iberian operations Iberia: favourable weather/market environment in 1Q13 for hydro/wind and for long position in clients Adverse regulatory measures (Portugal: no capacity payments; Spain: new generation taxes/wind regime)
Slide 4: 1Q13: Highlights of the period
1Q13: Highlights of the period Capex of €245m (-25% YoY): cash grant received in US (€91m), lower capex in wind, higher in hydro Portugal Disposal of gas transmission assets in Spain: EV of €258m, closed in Feb-13 Regulatory receivables Iberia: +€292m in 1Q13 reaching €2.9bn by Mar-13 Cash-in for ED
Slide 5: Weather and market prices in Iberia
Weather and market prices in Iberia: Portugal hydro production factor Avg. Pool Price in Iberia (1.0 = avg. year) (€/MWh) -20% Spain Portugal 1.25 Avg. year 50,6 0.19 40,3 1Q12 1Q13 1Q12 1Q13 Portugal wind production factor EDP: power production as % power supply (GWh liberalised) (1.0 = avg. year)
Slide 6: 1Q13 Operating Headlines: Hydro & wind represented 75% of EDP's power production
1Q13 Operating Headlines: Hydro & wind represented 75% of EDP’s power production Installed Capacity Generation Breakdown by Technology (GW) (TWh) -3% +15% 23.2 22.4 17.5 Other (1) 10% 3% Other (1) 13% 15.2 0,7 Coal 11% -20% Coal 0,9 3,3 CCGT 16% 17% -21% 0,3 CCGT 4,2 -55% Hydro 34% 1,0 7,4 Hydro 32%
Slide 7: EBITDA 1Q13: Breakdown by division
EBITDA 1Q13: Breakdown by division EBITDA Breakdown by division (€ million) % Chg. YoY +7% €1,072m €1,003m Liberalized 10% Activities Iberia 9% +18% 14% EDP Brasil 18% -15% 31% EDP Renováveis 26% +24% 90% Regulated +6% 27% 27% Networks Iberia (1) LT Contracted 20% -1% 18% Generation Iberia 1Q12 1Q13
Slide 8: 1Q13 EBITDA: Breakdown by market
1Q13 EBITDA: Breakdown by market EBITDA Breakdown by Major Subsidiaries: 1Q13 vs. 1Q12 EBITDA Breakdown by Geography (2): 1Q13 vs. 1Q12 (%) (%) ∆ % 1Q12-1Q13 Rest of Europe 5% +13% 5% 1Q12 1Q13 Var. % Var. Abs. Brazil 18% -15% 14% USA +8% 11% EDP Brasil 177 150 -15% -27 11% EDP España 173 212 +23% +
Slide 9: Operating costs: Opex/Gross Profit at 25% in 1Q13
Operating costs: Opex/Gross Profit(1) at 25% in 1Q13 Operating costs (2) : 1Q13 vs. 1Q12 1Q13 YoY Inflation (3) (€ million) (%) Brazil EDPR Iberia 0% 386 387 -9% 8,1% 82 75 71 79 +11% 0% 2,6% 232 233 0,2% 1Q12 1Q13 Portugal Spain Brazil (IGP-M) Iberia: Operating costs flat YoY, below inflation EDPR:
Slide 10: Capex: Execution of Selective Growth
Capex: Execution of Selective Growth Consolidated Capex by technology (1) (€ million) -25% €325m €245m 49 Expansion generation Brazil 56 Expansion Hydro Portugal 78 134 Expansion Wind 55 38 (2) Maintenance 136 116 -91 (3) 1Q12 1Q13 Capex -25% YoY, or +3% YoY excluding cash grant Higher expansion cap
Slide 11: Net regulatory receivables by Mar-13
Net regulatory receivables by Mar-13 Regulatory Receivables (€ million) +€313m 3,023 2,710 1,875 2.589 2.197 Portugal(2) 1.526 Spain 3 424 324 Brazil (1) 346 89 110 Mar-12 Dec-12 Mar-13 Portugal: +€392m (ex-ante tariff deficit, higher special regime, delay of CO2 cash proceeds and lower demand) Spai
Slide 12: Securitisation options on EDP's regulatory receivables in Portugal
Securitisation options on EDP’s regulatory receivables in Portugal EDP Regulatory Receivables in Portugal: Amortisation Profile (Mar-13 stock + Future 2013 Securitisable Tariff Receivables) (€ bn) 2012 Securitisable Tariff Receivables Avg. Receivables Maturity Tariff deficit tranches available for 2
Slide 13: EDP's Regulatory Receivables in Portugal
EDP’s Regulatory Receivables in Portugal Regulatory receivables in the Portuguese electricity system (€bn) +0.5 +0.3 4.3 4.5 4.0 3.4 3.1 1,8 2.6 1,9 2.1 1,9 1,9 1,9 Already securitized 2,0 2,2 2,6 1,1 1,5 0,7 Owed to EDP 0,1 2009 2010 2011 1Q12 2012 1Q13 2013E PORTUGAL Avg. Tariff Increase for LV 4.
Slide 14: Net debt
Net debt EDP consolidated net debt position: Mar-13 EDP consolidated debt by currency: Mar-13 (€ million) (%) PLN 18,133 8% raised at EDP Brasil USD 1% Bank loans and capital markets; 19% EDP Brasil Ring-fenced policy essentially ‘non- 1.395 recourse’ to EDP S.A. BRL 9% EDP Renováveis 639 71% 4% rai
Slide 15: Change in Net debt
Change in Net debt Change in Net Debt: Mar-13 vs. Dec-12 (€ billion) Regulatory Receivables 18.2 0,6 0,3 18.1 0,3 2,7 3,0 Net Debt Free Cash Regulatory Expansion Net Debt Dec-12 Flow (1) Receivables Capex & Mar-13 Net Invest. (2) Net debt decrease €0.1bn even following a €0.3bn increase of regulator
Slide 16: Net Debt Profile
Net Debt Profile EDP consolidated debt maturity profile (€ billion) Impact Jan-13 Credit Facility (€645m) Adjusted Avg. Debt Commercial paper Maturity (2): 4.2 years Other subsidiaries(1) EDP SA + BV Brazil: €335M Project Finance: €110M 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 2013 2014 2015 2016 2017 2018 2
Slide 17: Financial Liquidity position
Financial Liquidity position (€ million) Sources of liquidity (Mar-13) Maximum Number of Instrument Utilised Available Maturity Amount counterparties Revolving Credit Facility 2,000 21 100 1,900 03-11-2015 Domestic Credit Lines 183 8 0 183 Renewable Underwritten CP Programmes 300 2 0 300 Renewable T
Slide 18: Main sources and uses of funds
Main sources and uses of funds Sources of funds Use of funds Cash & Equivalents (Mar-13) : €1.5bn Refinancing needs in 2013: RCF maturing in Nov-13 €1.1bn Available Credit Lines (Mar-13): €3.0bn Bond maturing in Dec-13 €0.35bn Loans maturing in 2013: €0.1bn Total 2013 €1.6bn Refinancing needs in 201
Slide 19: Net Profit breakdown
Net Profit breakdown (€ million) 1Q12 1Q13 ∆% ∆ Abs. New capacity in EDPR and new hydro in EBITDA 1.003 1.072 +7% +68 Portugal partially offset by decommissioning of Setúbal and disposal of Soporgen Net Depreciations and 353 363 +3% +9 Provisions EBIT 650 709 +9% +59 Cost of debt: 4.2% in 1Q13 vs. 4
Slide 20: Business Areas
Business Areas
Slide 21: Iberia: Electricity and Thermal power demand
Iberia: Electricity and Thermal power demand Thermal Power Production in Iberian market Electricity Demand in Iberian Market (TWh) (∆% YoY) % Weight in Iberia in 1Q13 33 -3 +10 -51% 100% 17% 83% Iberian +8 Market Portugal Spain -4 16 -2,3% -4,0% -4,3% 1Q12 Demand Chg. Hydro Chg. Special Nuclear & 1Q
Slide 22: Liberalised Energy Activities Iberia (10% EBITDA)
Liberalised Energy Activities Iberia (10% EBITDA) EDP Liberalised Power Plants Iberia – Production Coal vs. CCGT – Load factors in 1Q12 and 1Q13 (TWh) (%) 1Q12 1Q13 +2% 58 3.5 3.6 Nuclear 9% -1% 9% 43 Hydro 11% +3x 44% Coal 52% -26% 38% 12 CCGT 4 27% -65% 9% 1Q12 1Q13 Coal CCGT Production +2%; hydro
Slide 23: Liberalised Energy Activities Iberia (10% EBITDA)
Liberalised Energy Activities Iberia (10% EBITDA) EBITDA Liberalised Activities in Iberian Market • Negative regulatory developments: No thermal (€ million) capacity payments in Portugal (vs. €11m in 1Q12), new generation taxes in Spain (€22m in 1Q13). +18% • Deterioration of thermal plants profitab
Slide 24: Long Term Contracted Generation Iberia (18% of EBITDA)
Long Term Contracted Generation Iberia (18% of EBITDA) EBITDA LT Contracted Generation (€ million) PPA/CMEC Special regime -1% 197 196 +118% -11% 1Q12 1Q13 PPA/CMEC: decommissioning of Setubal fueloil plant in Dec-12 (EBITDA 1Q12: €25m) Special regime: +6.5x YoY increase of mini-hydro production (EB
Slide 25: Regulated Energy Networks Iberia (27% of EBITDA)
Regulated Energy Networks Iberia (27% of EBITDA) EBITDA Adjusted EBITDA (1) (€ million) (€ million) Gas Iberia Gas Iberia Electricity Spain Electricity Spain Electricity Portugal Electricity Portugal +5% -12% 265 290 234 275 +67% 0% -2% -2% -17% -17% 1Q12 1Q13 1Q12 1Q13 Electricity Portugal: RoRAB d
Slide 26: EDP Renováveis (31% of EBITDA): Strong growth driven by new installed capacity
EDP Renováveis (31% of EBITDA): Strong growth driven by new installed capacity Installed Capacity Wind Power Production EBITDA (MW) (GWh) (€ million) Iberia USA Other (1) +24% +10% +7% 327 5,755 7,673 5,212 7,157 263 31% +42% 40% 49% 38% 39% +4% +39% 44% 10% 10% 14% 13% 17% 17% 59% -7% 49% 48% +6% 4
Slide 27: Brazilian Electricity System: 2012/1Q13 market conditions and regulatory developments
Brazilian Electricity System: 2012/1Q13 market conditions and regulatory developments Spot market prices in Southeast-Central West region vs. Hydro Reservoir Levels 1Q13 developments (R$/MWh; %) Reservoir levels Spot market prices Jan-13: Involuntary short position in spot market by 600 100% distrib
Slide 28: EDP Brasil (14% of EBITDA): EBITDA -4% YoY in local currency
EDP Brasil (14% of EBITDA) EBITDA -4% YoY in local currency EDP Brasil EBITDA EDP Brasil EBITDA (€ million) (R$ million) Generation & Other Distribution Generation & Other Distribution -15% -4% 177 411 396 150 -11% -22% +2% -10% 1Q12 1Q13 1Q12 1Q13 EBITDA in Euro terms: -15% YoY; -€21m impact from 1
Slide 29: EDP Brasil: Distribution (40% of EBITDA)
EDP Brasil: Distribution (40% of EBITDA) EDP Brasil: Distribution EBITDA (R$ million) Distribution: 2013 Prospects Reported Adjusted (1) Regulatory receivables of R$283m (€110m) by Mar-13: Revenues to be collected/booked at EBITDA level +5% in 2013/2014 -11% 203 194 2Q13: Cash proceeds from CDE sect
Slide 30: EDP Brasil: Generation and Other (60% of EBITDA)
EDP Brasil: Generation and Other (60% of EBITDA) EDP Brasil: Generation & Other EBITDA (R$ million) Pecém I EBITDA 1Q13: -R$72m Pecém I Adjusted (1) Group 1: Lower than expected availability in 1Q13 +2% 235 Group 2: Still in tests in 1Q13, no commercial operation 230 Electricity purchases in the mar
Slide 31: Outlook
Outlook
Slide 32: Prospects for 2013
Prospects for 2013: Strong hydro and wind resources in Iberia in 1Q13: Positive impact on EDPR, Liberalised activities and LT Contracted in 1Q13, non recurrent for the next quarters Liberalised activities with strong hedging position: 26TWh contracted with clients, spreads locked-up for 100% of coal
Slide 33: A resilient business model in a challenging environment
A resilient business model in a challenging environment Resilient performance EBITDA: +7% (61% of EBITDA from international operations) enhanced by Cost of debt: 4.2% in 1Q13 diversification Net Profit/EPS: -1% Capex: lower capex in wind, higher in hydro Portugal, in line with €2bn plan for 2013 Pro
Slide 34: Annex
Annex
Slide 35: Regulatory receivables Portugal: Evolution 1Q13 and 2013E
Regulatory receivables Portugal: Evolution 1Q13 and 2013E 2013 Tariffs Theme 1Q13 Prospects for 2013E Assumption €56m deficit in 1Q13: Low visibility on auctions’ prices, volumes and Revenues from CO2 Auctions ~€200m €0m timing for cash-in; decline of CO2 market price Lower demand (including mix chg
Slide 36: IR Contacts
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 Site: www.edp.pt May 13th-14th: London Equity Roadshow (Santander) Link Results & Presentations: May 14th: London Fixe
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