EDP Renováveis Presentation September, 2013 www.edpr.com 1
Disclaimer This presentation has been prepared by EDP Renováveis, S.A. (the "Company") solely for use at the presentation to be made on September, 2013. By attending the meeting where this presentation is made, or by reading the presentation slides, you acknowledge and agree to be bound by the following limitations and restrictions. Therefore, this presentation may not be distributed to the press or any other person, and may not be reproduced in any form, in whole or in part for any other purpose without the express consent in writing of the Company. The information contained in this presentation has not been independently verified by any of the Company's advisors. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. Neither the Company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity in any jurisdiction. Neither this presentation nor any part thereof, nor the fact of its distribution, shall form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. Neither this presentation nor any copy of it, nor the information contained herein, in whole or in part, may be taken or transmitted into, or distributed, directly or indirectly to the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities laws. This presentation does not constitute and should not be construed as an offer to sell or the solicitation of an offer to buy securities in the United States. No securities of the Company have been registered under U.S. securities laws, and unless so registered may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of U.S. securities laws and applicable state securities laws. Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements are statements other than in respect of historical facts. The words “believe”, “expect”, “anticipate”, “intends”, “estimate”, “will”, “may”, "continue”, “should” and similar expressions usually identify forward-looking statements. Forward- looking statements include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; developments of the Company’s markets; the impact of regulatory initiatives; and the strength of the Company’s competitors. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause the actual results, performance or achievements of the Company or industry results to differ materially from those results expressed or implied in this presentation by such forward-looking statements. The information, opinions and forward-looking statements contained in this presentation speak only as at the date of this presentation, and are subject to change without notice unless required by applicable law. The Company and its respective agents, employees or advisors do not intend to, and expressly disclaim any duty, undertaking or obligation to, make or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this presentation to reflect any change in events, conditions or circumstances. 2
EDP Renováveis
EDPR top quality and diversified portfolio of 8.1 GW in 1H13 Canada Building the first wind farm 30 MW Belgium UK #1 57 MW Poland Offshore under dev. #3 up to 2.4 GW US 320 MW 3,637 MW France 314 MW #2 Romania Italy 378 MW #3 #1 Spain Portugal 40 MW Brazil 2,310 MW 1,010 MW 84 MW Notes: 1H13 Figures; Portugal installed capacity includes 391 MW from ENEOP (Equity Consolidated) 4
EDPR a worldwide renewable market leader An outstanding growth rate over the last 5 years #3 worldwide wind energy producer Electricity Production Evolution Top Wind Players (TWh) (TWh, 2012) +24% 31.0 CAGR 25.8 18.4 18.4 16.8 16.8 15.2 14.4 10.9 7.8 Iberdrola Nextera EDPR Longyuan Acciona 2008 2009 2010 2011 2012 Source: Companies‘ Reports 5
Solid key metrics drivers… 1H13 Operating Metrics 1H13 Financial Metrics 10.7 TWh €560m Electricity Output EBITDA Ongoing growth Solid returns +8% YoY +11% YoY 33% €129m Load Factor Net Profit Quality assets Increased profitability +0.7bps YoY +29% YoY €64.3/MWh Selling Price Free Cash-Flow €298m Low risk portfolio Self funding strategy +5% YoY …delivering stronger profitability and robust cash-flow generation 6
Executing a clear strategy to enhance shareholder returns Quality assets delivering increased profitability Ongoing premium performance on key operating metrics: Load Factor, Availability and Cost Control Better visibility in the US: +250 MW PPA signed in the 1H13 for operating capacity Selective and profitable growth Targeting 0.5 GW of capacity additions for 2013: +163 MW YTD & remaining under or to start construction Increased visibility on growth: +0.4 GW of PPA structured for new capacity to be installed in 2014/15 in US Self-funding business model €368m cashed-in through asset rotation in the 1H13: 1 st transaction with CTG concluded (Portugal) Self-funded growth to be enabled by additional transactions under negotiations with financial investors and CTG 7
Quality assets delivering increased profitability
First-class assets with 4.4 average years of age set to deliver premium returns Assets’ Average Age and Residual Useful Life Asset Base Invested Capital (Years; weighted average) (MW) (€ million) EDPR Assets Age 2,310 Spain 5.8 Portugal 1,011 4.8 Property, Plant and Equipment 314 France 4.1 (-) PP&E, assets under construction 57 Belgium 4.3 Poland 320 1.4 (-) Cash grants received in the US 378 Romania 1.4 Italy 40 0.5 (=) Invested Capital in Existing Assets 3,637 US 4.1 11,528 (gross) 10,371 (net) 84 Brazil 2.4 EDPR 8,150 4.4 0 5 10 15 20 25 EDPR has €11.5bn invested in a very young asset base with 21 years of useful life Notes: 1H13 Figures; Portugal installed capacity includes 391 MW from ENEOP (Equity Consolidated) 9
Premium performance based on a distinctive expertise Spanish Load Factor: EDPR vs. Market Average Energy Assessment & Engineering 28% 27% 27% 26% 25% 25% Spanish Market Wind assessment is knowledge-based and difficult to replicate Provides site selection criteria 2007 2008 2009 2010 2011 2012 Load Factor: LT view on Current Assets Optimises layout for superior performance 27% 27% 32% 27% 24% 24% 23% 24% 32% Supports turbine selection Key value drivers to maximize load factors and revenues Strong in-house wind energy assessment knowledge delivering a structural competitive advantage 10
A diversified portfolio delivering balanced output 1H13 Electricity Output Breakdown Electricity Output Breakdown (GWh; %) (GWh, %) Brazil 6% 9% US PPA RoE 10% 8% Portugal 41% Brazil 1% 30% 28% Spain 37% Spain 40% US PPA US Spot 29% 11% Portugal 16% 14% Rest of US Spot 8% Europe 2010 2011 2012 9% Balanced generation portfolio with increased output in Eastern Europe and lower merchant exposure in US 11
Diversified portfolio with 88% of PPA/Regulated frameworks with a long-term maturity Capacity under Long-Term Remuneration Frameworks (MW; 1H13) Spot Maturity Portfolio exposed to a diversified set of economic regimes 44% 49% 44% 45% 88% of PPA/Regulated Frameworks with a long-term maturity beyond 2020 12% 7% PPA/ Green >2025 Jun-13 FiT <2020 2020-25 LT Hedges Certificates (floors/caps) Notes: PPA/LT Hedges: US, Brazil, Specific Polish projects, Belgium 12
Solid price performance supported by low risk portfolio EDPR Average Selling Price Breakdown of Average Selling Price per MWh (€/MWh) YoY% 1H13 2010 2011 2012 €79 €83 €88 €85 -3% +5% YoY 64 63 €94 €99 €102 €108 +1% 58 58 €94 €96 €107 €111 +4% RoE PPA/ $54 $51 $52 $52 +1% Hedge $31 $30 $31 $31 +24% Spot 2010 2011 2012 1H13 R$254 R$278 R$286 R$309 +11% 1H13 average selling price of 64.3€ per MWh, meaning +5% YoY 13
Recommend
More recommend
