EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — EDP Renováveis — FY2017 Earnings Presentation
25 slides from EDP Renewables SA's earnings presentation, Feb 27, 2018
Slide 1: EDP Renováveis 2017 Results
& renovaveis EDP Renovaveis 2017 Results 7 February 27th, 2018 15:00 CET | 14:00 UIX/Li www.edpr.com =. > .
Slide 2: Disclaimer
This presentation has been prepared by EDP Renováveis, S.A. (the "Company“; LEI 529900MUFAH07Q1TAX06) solely for use at the presentation to be made on February 27th, 2018. By attending the meeting where this presentation is made, or by reading the presentation slides, you acknowledge and agree to be
Slide 3: Agenda
Agenda & renovaveis Highlights of the year i 2017 Results Business Plan Execution Conclusions
Slide 4: Highlights of the year
Se renovaveis Highlights of the year
Slide 5: Quality assets, selective and profitable growth, self-funding business
Quality Selective and Self-funding assets profitable growth business 97.8% availability +600 MW installed YoY $507m of TEI funding secured vs 97.7% in 2016; benefitting from 828 MW additional capacity already €220m Net Debt & TEI decrease predictive maintenance and O&M strategy under construction in
Slide 6: 2017 Snapshot: operational and cash generation achievements vs targets
2017 Snapshot: operational and cash generation achievements vs targets 2017 2017 Achieved Expected Avg. MW in Operation +9% +7-9% Benefitting from 2016 growth and 2017 EBITDA YoY YoY earlier CODs in new capacity (€ million) ~+10% Load Factor expected 31% Positive impact from new projects (+3%) & c.3
Slide 7: 2017 Results
Se renovaveis 2017 Results
Slide 8: Installed Capacity
Installed Capacity1 YoY Under (EBITDA MW + Equity Consolidated) Additions Construction Rest of Europe Portugal Brazil +424 MW +480 MW 14% 11% 3% +49 MW +211 MW Spain 11.0 GW 22% North America +127 MW +137 MW 50% +600 MW +828 MW Average Installed Capacity increased +9% YoY 600 MW added YoY and 828 MW
Slide 9: Load Factor and Technical Availability
Load Factor and Technical Availability EDPR Quarterly Load Factor vs. long-term average (%) 2016 2017 +7% 2017 D% YoY 2017 vs. Average (P50) 27% +0.7pp 98% +1% 35% +1.4pp 98% -1% -3% -3% -4% 43% +8.8pp 111% -7% 31% +1.4pp 98% -11% 1Q 2Q 3Q 4Q EDPR Availability1 97.8% +0.1pp In 2017, EDPR reached a 3
Slide 10: Electricity Production
Electricity Production TWh (TWh) r% YoY +13% Mainly supported by Poland (+15%), 27.6 +4% Romania (+13%) and Italy (+30%) +0.5 24.5 +2.7 Impacted by capacity additions with +20% higher expected load factors Reflecting mainly the capacity +29% additions with stronger wind resource 2016 Capacity D Load
Slide 11: EDPR Price Evolution
EDPR Price Evolution (€/MWh) 2017 r% YoY1 Mix: production vs price Higher realized prices in ES, PT and in IT (+1%, +2% and +4% YoY) -2% €81.0 -1% offset by RoE; PL -17% YoY due to GC price/ regulation change €60.5 €59.2 US (-1%): different mix profile $46.4 - Canada (+2%): from fx, flat in CAD New
Slide 12: Main drivers for Revenues performance
Revenues Main drivers for Revenues performance (€ million) +11% Quality assets: +9% Avg. MW YoY 1,827 High availability: 97.8% 1,651 Capacity additions: +€166m YoY Higher output: +13% YoY Higher load factor (31% vs 30% 2016) with new MW (+9% Avg. MW YoY) Lower average selling price: -2% YoY Positive
Slide 13: Opex
Opex (excludes Other Operating Income) (€ million) +4% Core Opex/Avg. MW (€k) (Supplies & Services and Personnel Costs) 556 -2% 534 -5% per MWh Levies & Non-recurrent 42.8 42.1 Core +7% Opex(1) 2016 2017 2016 2017 Core Opex increasing YoY on the back of higher installed capacity. Core Opex per avera
Slide 14: EBITDA and EBITDA per Region
EBITDA EBITDA per Region(1) (€ million) (%) +17% Rest of Europe 1,366 Portugal 17% 15% Brazil 1,171 4% Spain €1,366m 20% North America 43% 2016 2017 Reported EBITDA totaled €1,366m (+17% YoY) benefitting from positive evolution of the top line (+11% YoY) along with higher Other operating income (+77
Slide 15: 2017 EBITDA to Net Profit
2017 EBITDA to Net Profit (€ million) r€m YoY EBITDA Positive top line evolution with higher 1,366 +€195m Other operating income Change in depreciation schedule from 25 to 30 D&A 563 +€44m years despite higher capacity YoY and impairments As a result of top-line performance EBIT 803 +€239m and lower
Slide 16: 2017: Retained Cash Flow (RCF)
2017: Retained Cash Flow (RCF) (€ million) +17% Quality assets delivering +154 (46) cash-flow generation mostly +60%1 (268) from PPA and Feed-in Tariffs 1,114 Impacted by higher (92) benefits realized in Tax Equity partnerships Lower interests costs from €2.8bn 1,366 restructured/prepaid since 1Q16
Slide 17: 2017 from RCF to Debt and TEI variance
2017 from RCF to Debt and TEI variance 2017 Debt and TEI Breakdown (%) (€ million) +60% +247 9% TEI €1.2bn Other (1,022) & TEI 61% 50% 1,114 Gross Debt Loans (44) (75) 220 €3.2bn with 30% EDP 50% RCF Asset Cash Dividends to Forex r Net Debt Debt & TEI Currency Type Rotation Invest.1 EDPR & Other and
Slide 18: Business Plan Execution
Se renovaveis Business Plan Execution
Slide 19: 2016-20: 86% of the 3.5 GW target already secured
1 2016-20: 86% of the 3.5 GW target already secured Post 2020: projects already secured GW build/secured Target (avg. MW/year) Secured MW UK: • 950 MW (EDPR@77%) • FID 2018E PPA/Auctions/Tariffs 93 Offshore • COD 2022E new 232 France: platform • 992 MW (EDPR@43%) 0.8 0.8 0.8 • FID 2020E 0.7 127 • CO
Slide 20: Delivering strong operating metrics and efficiency
2 Delivering strong operating metrics… …while performing ahead of expectations on efficiency Core Opex/Avg. MW 97.8% (€k; % CAGR) 2016-20 97.5% target -1% -3% 45.1 42.1 2020 33% target 31% 29% 2015 2015 2017 2020 Availability Load factor % of 2017 2017 30% 41% 50% insourcing Distinctive O&M strategy
Slide 21: Cash-flow generation and value accretive transactions
3 Quality assets delivering Top class sponsor with the ability strong cash-flow generation to close value accretive transactions Retained Cash-Flow (€bn) Tax Equity Impacted by EDPR closed the first tax equity transactions post US tax reform: 1.1 non-recurrent • 2017 portfolio: 363 MW of wind + 60 M
Slide 22: Conclusions
Se renovaveis Conclusions
Slide 23: Conclusions
Solid capacity growth (+600 MW YoY) together with positive evolution of load factor: +13% YoY output growth Selling prices at €59/MWh (due to generation mix) but above expected evolution, backed by hedging strategy O&M initiatives and cost control continue to drive higher efficiency, with Core Opex/
Slide 24: IR Contacts
IR Contacts Rui Antunes, Head of IR, P&C and Sustainability Maria Fontes Pia Domecq Marten Menke E-mail: [email protected] Phone: +34 914 238 402 Fax: +34 914 238 429 Serrano Galvache 56, Edificio Olmo, 7th Floor 28033, Madrid - Spain EDP Renováveis online Site: www.edpr.com Link Results & Presentations:
Slide 25: renováveis: powered by nature
renovaveis powered by nature