EDP Renováveis 1H15 Results July 29 th , 2015 15:00 CET | 14:00 UK/Lisbon www.edpr.com
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Agenda I Highlights of the period II 1H15 Results III Outlook and Conclusions 3
Executing a solid strategic agenda • Output of 11 TWh on the back of strong operational excellence with 97.4% availability levels; 1H15 registered a weaker load factor YoY and was 3% below the P50 scenario Quality assets • Avg. selling price improved 11% YoY due to increase in Spain, US and FX translation and stable pricing on the back of PPA/FiT and effective hedging strategies • O&M strategy continues to deliver higher efficiency ( Adj. Opex/MW ex-FX -7% YoY ) • EBITDA of €548m (+11% YoY) reflecting higher prices and efficiency and Net Profit of €69m (-14% YoY) impacted by wind conditions in 1H15 vs. 1H14 and one-offs Selective and • Capacity under execution in 2015 totals 661 MW (105 MW added in 1H15 and 556 MW profitable growth under construction) and is ahead of target additions (~0.6 GW) • 0.9 GW for ST growth (2016-17) with PPA/FiT contracts in US, EU and Brazil/Mexico • €404m of OCF from a portfolio mostly exposed to PPA/FIT regimes and with an expected remaining lifespan of at least 20 years Self-funding • Ongoing execution of Asset Rotation ($378m received in 1H15) and studying the business model development of a complementary Asset Rotation program ( YieldCo ) • Net Debt increased to €3.5bn (+€0.2bn vs. Dec-14) due to FX translation (+€0.2bn) 4
1H15 Results
EDPR has today a portfolio of 9.1 GW of first- class assets with average 5.6 years old Installed Capacity 1 1H15 Under (EBITDA MW + Equity Consolidated) Additions Construction Rest of Portugal Europe +99 MW +300 MW 13% 15% 9.1 GW +6 MW +136 MW Spain 26% North Brazil America - +120 MW 1% 45% +105 MW +556 MW Average Installed Capacity 2 increased +6.8% YoY 661 MW under execution in 2015 2015 execution above expectations: 105 MW added in 1H15 and 556 MW currently under construction Notes: 1) Installed capacity includes EDPR’s Equity consolidated: 533 MW of EDPR’s interest in ENEOP, and equity stakes of 174 MW in Spain and 179 MW in the US. 6 Includes 82 MW of Solar PV. 2) Refers only to EBITDA MW
Recurrent premium load factor reflecting distinctive core competences EDPR Quarterly Load Factor vs. Quarters’ Average Load Factor and Technical Availability (%) 1H14 vs. 1H15 vs. ∆ % YoY 1H15 2013 2014 2015 average average +12% 29% -1.5pp 110% 104% +5% +5% 33% -3.9pp 103% 90% +2% +0% 26% -2.4pp 101% 92% -3% -3% -3% -4% 31% 107% 97% -2.6pp -7% 1Q 2Q 3Q 4Q EDPR Technical 97.4% 0.0pp Availability Although the 1H15 had a wind resource below the expected scenario (P50), EDPR continues to achieve load factors above market 7
Evolution of electricity output impacted by outstanding wind resource in 1H14 Electricity Production (TWh) TWh % YoY Stable in Europe YoY with strong -1% output growth in RoE +24% YoY -0.4% mitigated by the lower wind resource in Iberia 11.0 10.8 +0.3 -0.7 Outstanding load Low wind resource in Central and -2% Western regions, which offset the factor in 1H14 effect from capacity additions -8% Lower load factor YoY 1H14 Capacity Load 1H15 Growth Factor Electricity Output breakdown: 51% in Europe, 49% in US and 1% in Brazil 8
Selling price increased +11% YoY, with the active hedging strategy offsetting impact of lower output EDPR Price Evolution (€/MWh) % YoY 1H15 +11% +15% YoY higher price in Spain; +3% €82.2 +4% ex-FX 1.2 TWh sold under hedges €64.2 €57.7 Higher PPA prices (+0.4% YoY); +3% $52.1 Non-PPA: $46/MWh (+22% YoY) REC sales & effective hedgings +7% R$369 Inflation adjustment 1H14 1H15 Selling price recovered from depressed levels in Spain and in US (1H14) and boosted by FX conversion 9
Revenues totalled €773m (+11% YoY) on the back of better prices and dollar strength Revenues (1) Main drivers for Revenues performance (€ million) +11% Quality assets: +492 MW (EBITDA) YoY Load factor: 31% High availability: 97.4% 773 693 Lower Electricity output: -1% YoY EU -0.4%; NA -2%; BR -8% Higher average selling price: +11% YoY EU +3%; NA +3%; BR +7% 1H14 1H15 Better pricing in Spain and US driving the increase in Revenues 10 (1) Do not include gains with hedges accounted in financial results.
O&M strategy and cost control continue to deliver sound results Opex (excludes Other Operating Income) (€ million) Adj. Opex/MW (ex-Levies & Write-Offs) +13% (€k) +4% ex-FX 241 +4% 214 -7% ex-FX Levies & 22.1 +16% 21.2 Write-Offs +11% Adj. Opex (1) -4% ex-FX 1H14 1H15 1H14 1H15 Operating costs per average MW ex-FX decreased 7% YoY 11 Notes: (1) Opex excluding levies and write-offs.
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