Slide 1: 2018 Results Presentation
2018 RESULTS PRESENTATION London, March 12th 2019
Slide 2: 2018 results highlights
Recurring EBITDA1: €3,287 Mn YoY +2% Installed Capacity, +0.6 GW of wind farms additions (net of asset rotation) Recurring Wind resources at 6-year record low in 2H18, avg. hydro resources in Portugal in 2018 (but weak in 4Q) EBITDA1 Regulatory changes in Portugal Strong Opex performance – Iberia: -
Slide 3: Strategic update: focused growth, portfolio optimization, efficiency and financing
Focused growth Portfolio optimization Efficiency and financing Wind onshore & solar: 1st asset rotation of majority stake in Efficiency wind +0.8 GW built out OPEX IV savings: ~€200 Mn in PPAs secured for 1.3 GW (0.4 GW of solar) 80% of 0.5 GW in US/Canada 2018 (2020 target reached 2 yrs ahead) $1.7
Slide 4: Pre-tax impact of regulation in Portugal 2018
Pre-tax impact in Portugal 2018 € Mn CMEC ONE-OFFS 2018 Retroactive cuts on innovatory aspects (€285 Mn) and final adjustments (€18 Mn) CMEC 303 CESE (Extraordinary Energy Tax) 0.85% on net assets; €25 Mn distribution + €40 Mn generation CESE 65 GENERATION TAXES Clawback (€50 Mn), ISP/CO2 (€6 Mn) Ge
Slide 5: Hydro production in Iberia and EDPR wind resources
EDP Hydro production in Iberia1 EDPR Wind Resources TWh Hydro Load Factor 2017 2018 LT avg. resources vs. LT Avg. 2 40% 13.7 35% 30% 7.4 4Q 25% 9M 20% 2017 2018 1Q 2Q 3Q 4Q Hydro resources 2018 quarterly wind resources vs. LT avg. vs. LT Avg. 2 6-year record low wind 2018 resources 1 Includes hydro
Slide 6: Recurring EBITDA 2018
Recurring EBITDA 20181 € Mn; YoY growth,% ex-forex ex-forex Portugal: Hydro production +85% 3,383 3,287 Distribution: lower regulated revenues (-€164 Mn) Iberia 33% 34% Spain: hydro production +123%; improved market conditions 8% 9% Wind resources vs. LT avg. -6% in 2018; Decline in revenue/MWh EDPR
Slide 7: Opex performance by business area
Weight on Opex Business area Indicator YoY Change Main drivers Iberia Inflation Portugal +1.0%2 Opex1 -4% avg. Headcount vs Dec-17 EDP Brasil Avg. Inflation: +3.7%3 Opex in BRL DisCos # Customers: +2% YoY EDPR Development of O&M internalisation Adj. Core Opex/MW4 Core Opex/Avg. MW: +2% Generation av
Slide 8: Recurring Net Profit 2018
Recurring Net Profit 20181 € Mn 797 YoY1 770 Reported net loss in Portugal of -€18 Mn in 2018: strongly penalized by regulation of -€210 Mn 285 340 Recovery of hydro resources in Iberia to normalized levels 137 Good performance on recurring OPEX3 (-€27 Mn YoY) 127 263 EDPR Net profit +14%; EDP stake
Slide 9: Results Analysis
Results Analysis
Slide 10: Installed capacity and electricity production by technology
YE 2018 Wind Hydro Solar CCGT Coal Other(1) Installed capacity breakdown by technology Electricity production breakdown by technology GW TWh 1% 2% 12% 24% 14% 41% 39% 1% 7% 0% 32% 27% in renewables capacity in renewables production 1 Others include thermal special regime (cogeneration, biomass) and
Slide 11: EDPR EBITDA
EDPR EBITDA € Mn; YoY growth,% ex-forex 2017 2018 YoY 1,366 1,300 Avg. Installed Capacity, GW Brazil 4% 3% Production vs. LT Avg. (P50), % North America 44% 49% Electricity Production, TWh Avg. selling price, €/MWh (-7% ex forex) Europe1 52% 49% PTC revenues, $ Mn 2017 2018 1 Includes others STRATEG
Slide 12: Recurring EBITDA Generation & Supply Iberia
Recurring EBITDA Generation & Supply Iberia1 € Mn; YoY growth,% 796 2017 2018 YoY Hydro Production2, TWh 568 Hydro weight on Gen. mix, % Avg. production cost3, €/MWh CMEC deviation revenues, € Mn 2017 2018 1 Adjusted for 2H17’s share of lower CMEC Final Adjustment (-€18 Mn in 2018) and restructuring
Slide 13: EDP Brasil recurring EBITDA
EDP Brasil EBITDA recurring1 R$ Mn; YoY growth,% 2,472 2017 2018 YoY 2,217 Distribution Espírito Santo 989 Hydro Gen., grid losses2, 918 Supply & Other % São Paulo 596 Pecém I 467 Pecém availability penalty/ premium, R$ Mn Distribution 831 887 GSF impact net of hedging3, R$ Mn 2017 2018 1 In 2018, e
Slide 14: Pro-forma EBITDA – Regulated networks
Pro-forma1 EBITDA – Regulated networks € Mn; YoY growth,% 784 Electricity 140 2017 2018 YoY Spain 636 145 Regulated revenues, € Mn Return on RAB, % Electricity 645 Portugal OPEX3, € Mn 491 Electricity distributed, TWh 2017 2018 1 In 2017, excludes EBITDA from gas distribution in Iberia; Excludes cur
Slide 15: Change in Net Debt: Dec-18 vs. Dec-17
Change in Net Debt: Dec-18 vs. Dec-17, € Bn +50% YoY From €0.8 Bn in Dec-17 €0.19 per to €0.2 Bn in Dec-18 13.9 share 0.4 13.5 -0.6 -1.2 0.3 0.7 Net of disposals and One-off payments TEIs proceeds Taxes Portugal (CESE, assets revaluation programme) Pension fund contribution Net Debt Recurring Organi
Slide 16: Financial liquidity and debt maturity profile
Financial liquidity as of Dec-18 EDP consolidated debt maturity profile as of Dec-18 € Bn € Bn EDP S.A., EDP Finance B.V. and Other EDP Brasil 2.5 2.4 Cash & Equivalents: 1.8 1.8 1.6 1.6 1.6 1.6 Available Credit Lines: 0.8 Total Liquidity 2019 2020 2021 2022 2023 2024 2025 2026 > 2026 2018 Mar-18: €
Slide 17: Net Financial Costs: 2018 vs. 2017
Net Financial Costs1 : 2018 vs. 2017 € Mn 797 Recurring net interest costs: -€77 Mn or -12% YoY One-offs 27 Avg. cost of debt down from 4.1% to 3.8% -77 Avg. debt -11% YoY -30 Recurring Asset rotation of majority stakes: gains on sale of -87 770 stakes in wind off-shore projects in UK and France 543
Slide 18: 2018 Reported and Recurring Net Profit
2018 Reported and Recurring Net Profit, € Mn Reported YoY Recurring1 YoY1, 2 Hydro normalization Iberia and renewables capacity additions offset by EBITDA 3,317 -673 €0.6bn gain 2017 3,287 -96 regulation in Portugal (-€210 Mn)3, forex (-€163 Mn) and weak wind Amort., Impair. -1,733 -61 CMEC prov
Slide 19: IR Contacts and Next Events
IR Contacts Miguel Viana, Head of IR E-mail: ir@edp.pt Sónia Pimpão Phone +351 210 012 834 Carolina Teixeira Site: www.edp.com Andreia Severiano Next Events March 13th: London (Morgan Stanley) March 18th: Chicago (Kepler) April 24th: Annual Shareholders meeting March 14th: London (UBS) March 19th: T