Edp Renewables Sa · EURONEXT:EDPR
Edp Renewables Sa — EDP Renováveis — Q1 2012 Earnings Presentation
23 slides from Edp Renewables Sa's earnings presentation, May 9, 2012
Slide 1: Results Presentation 1Q 2012
Results Presentation 1Q 2012 May 9th, 2012 www.edpr.com
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by EDP Renováveis, S.A. (the "Company") solely for use at the presentation to be made on the May 9th, 2012. By attending the meeting where this presentation is made, or by reading the presentation slides, you acknowledge and agree to be bound by the fol
Slide 3: Highlights of the period
& renovaveis Highlights of the period
Slide 4: In the 1Q12 EDPR delivered...
In the 1Q12 EDPR delivered... Volumes • +18% YoY of electricity output growth (load factor of 34%) ...quality growth through Prices • +4% YoY on the average selling price selective investments... Opex • Opex per average MW in operation decreased by 1% YoY MW Exposure • 90% of the portfolio with long
Slide 5: 1Q12 Operating and Financial Performance
1Q12 Operating and Financial Performance
Slide 6: Installed capacity increased 9% YoY to 7.5 GW through selective investments
Installed capacity increased 9% YoY to 7.5 GW through selective investments in quality projects YoY Capacity Increase Additions by market in the last 12 months (EBITDA GW + Eólicas PT (1)) (EBITDA MW + Eólicas PT (1)) +9% 7.5 France Portugal 6.9 22 101 Spain 43 Romania 126 619 MW Poland US 60 198 Br
Slide 7: Top-class assets and portfolio diversification enabled a premium load factor of 34%
Top-class assets and portfolio diversification enabled a premium load factor of 34% in the 1Q12 Load Factor and Technical Availability YoY Electricity Output (%) (TWh) 1Q11 1Q12 +18% EU 29% 27% 5.2 +0.04 4.4 +0.1 +0.6 US 35% 41% BR 19% 26% EDPR 33% 34% EDPR Technical 97.5% 98.1% Availability 1Q11 EU
Slide 8: Stronger prices in Europe and Brazil, and flattish average price in the US
Stronger prices in Europe and Brazil, and flattish average price in the US EDPR Price Evolution (€/MWh) Price Output Mix (GWh) Region Evolution +4% 1Q11 1Q12 57.9 60.1 EU Forex impact +9% 45% 41% (EUR) +€0.85/MWh Mix impact PPA +2% 38% 44% -€3.06/MWh US (USD) Spot -21% 17% 15% BR +5% 0% 1% (BRL) 1Q1
Slide 9: Revenues increased 22% YoY to €346m...
Revenues increased 22% YoY to €346m... Revenues Main drivers for Revenues performance (€ million) +22% Higher installed capacity: +619 MW YoY (40% from CEE and Brazil) 346 284 Quality assets: Top-notch load factor (34%) and record availability (98%) Stronger selling prices: EU +9%; BR +5%; US flatti
Slide 10: Maintenance of high efficiency levels
Maintenance of high efficiency levels Opex (excluding Other Operating Income) Opex/Average MW in operation (€ million) (thousand) +11% 1Q11 1Q12 ∆% 89 80 EU 11.8 12.8 +8% (EUR) US 15.9 14.4 -9% (USD) EDPR 12.8 12.6 -1% (EUR) 1Q11 1Q12 Other Operating 16 -60% 6 Income • Europe: O&M costs under contro
Slide 11: Quality operations reflected in a stronger EBITDA per MW resulted in 20% EBITDA growth
Quality operations reflected in a stronger EBITDA per MW resulted in a 20% EBITDA growth EBITDA/average MW in operation EBITDA and EBIT (€ thousand) (€ million) 1Q11 1Q12 ∆% +6% 37 Europe 141 159 +13% 35 US 80 107 +34% Brazil (0.4) 3 - Other (0.1) (5) - EBITDA 220 263 +20% EBITDA mg. 77% 76% -1pp D&
Slide 12: Cost of debt reduced by 10bps to 5.3%
Cost of debt reduced by 10bps to 5.3% Average Financial Debt Net Interest Costs (€ million) (€ million) +8% +5% 3,710 3,438 47 45 1Q11 1Q12 1Q11 1Q12 Cost of 5.4% 5.3% Debt • Nominal Cost of Debt at 5.3% (-10bps YoY), reflecting the long-term debt profile at fixed rates (89% fixed) • Net interest co
Slide 13: Income Taxes increased to €27m given the €14m non-cash impact from US deferred taxes
Income Taxes increased to €27m given the €14m non-cash impact from US deferred taxes Income Taxes Effective Tax Rate (€ million) (%) US Deferred Taxes (non-cash): Tax provision in the US for 27 future tax liabilities 30% (US Profit Before Taxes x 36%) 22% 14 15 1Q11 1Q12 1Q11 1Q12 • In the 4Q11, EDP
Slide 14: Net Profit increased 26% YoY to €62m
Net Profit increased 26% YoY to €62m Net Profit Main Drivers for Net Profit Performance (€ million) Like-for-like evolution(1) Top-Line performance: +26% Capacity growth, higher load factor, stronger prices +23% 62 49 Operating efficiency and higher profitability: Opex per MW declined 1%; EBITDA per
Slide 15: Operating Cash-Flow increased 17% to €202m...
Operating Cash-Flow increased 17% to €202m... Net Profit to Cash-Flow Operating Cash-Flow Evolution (€ million) (€ million) +17% 263 202 -62 202 173 +114 +80 62 Net Net Financials, Financials D&A D&A EBITDA Adjust. Operating EBITDA Adjustments Oper. Profit Taxes & Minorities & Taxes Cash-Flow 1Q11 1
Slide 16: Operating Cash-Flow covered 4x the 1Q12 Capex
Operating Cash-Flow covered 4x the 1Q12 Capex 1Q12: Source and Use of Funds (1) (€ million) Source of Funds Use of Funds 10 42 187 280 202 21 55 Operating Project Corporate debt Net PP&E Other Capex Cash-Flow Finance net of cash & Interest Suppliers Payments equivalents paid EDPR successfully closed
Slide 17: Right funding strategy to support growth in a capital intensive industry
Right funding strategy to support growth in a capital intensive industry 1Q12: Debt Profile Debt Maturity @ Mar-12 (%) (€ million) 4,000 79% EUR 58% 3,000 Fixed 89% 2,000 USD 36% 1,000 5% 8% Variable 11% 2% 2% 2% 2% BRL/PLN 7% 0 Type Currency 2012 2013 2014 2015 2016 2017 >2018 Long term fixed rate
Slide 18: Outlook and Conclusions
& renovaveis Outlook and Conclusions
Slide 19: 2012 Execution: On-track
2012 Execution: On-track 2012 Execution 1Q12 Status • 8 GW of installed capacity (+500 MW) • 500 MW currently under construction • Single digit output growth • 18% of output growth; single digit target maintained • Sustainable improvement in the average selling price • 4% increase in the average sel
Slide 20: EDPR's short-term priorities
EDPR’s short-term priorities • Install 500 MW in 2012 of high quality projects with above- Execution of the 2012 average selling prices and premium load factors investment plan • New capacity to have a back-end loaded profile in 2012 • CTG to invest €2bn in 1.5 GW (net) of EDPR’s assets up to 2015 E
Slide 21: Conclusions
Conclusions Quality asset base progressively showing a sustained improvement of the business key value metrics Management focus on efficient operations through high technical availability and low operating & maintenance costs EDPR to continue to invest in quality projects to 2015: new business plan
Slide 22: IR Contacts
IR Contacts Rui Antunes, Head of IR Francisco Beirão Diogo Cabral 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 Next Events Site: www.edpr.com 22-23 May: Investor Day 28 May-01 Jun: Roadshow Eur
Slide 23: oS) 9A
0) pa > rw) oS) 7 6 9A T 0) = 0) 3 O Oo