Transcript EDP Internacional

Business Opportunities and Internationalization in the
Power Sector
Jorge Cruz Morais
EDP Internacional
Lisbon, 21st March 2013
From a local electricity incumbent to a global energy player, present in
13 countries and with a sizable business portfolio
Wind Power (11 countries)
13 countries
29 nationalities
~60% EBITDA outside Portugal
25% of EBITDA
• Listed subsidiary: EDP Renováveis
(EDP has 77.5%)
• IPO in Jun-08
• Wind Power: 7.4 GW
• # 3 wind operator worldwide
Iberia
Brazil
14% of EBITDA
• Listed subsidiary: EDP Brasil (EDP has 51%)
• Presence since 1996
• Hydro Power: 1.8 GW
• 2 electricity distribution concessions
• ~2,8 million clients
Note: Data as of Sep-12
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Portugal
43% of EBITDA
• Privatization in 1997 (IPO)
• Power generation: 10.3 GW
(ex-wind)
(from which 5.2GW is hydro)
• Single electricity distributor
• ~6,3 million clients
Spain
18% of EBITDA
• Presence since 2001
• Power generation 3.9 GW
(ex-wind)
• # 2 in gas distribution
• ~1,8 million clients
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EDP internationalization process started several years ago, leading to a
more diversified sources of value and contribution towards EDP’s results
Weight of the different geographies in EDP’s EBITDA (%)
100%
90%
80%
RoW
70%
60%
50%
40%
30%
20%
10%
0%
1999
Note: PT and SP do not include EDP Renováveis’s results in Portugal and Spain
Source: EDP Group
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2005
2010
2012
2
EDP’s “natural markets” are experiencing a downturn, which makes the
internationalization process even more important today
Yearly electricity consumption in Portugal
(TWh)
2012
consumption at
2006 levels
60
Yearly electricity consumption in Spain
(TWh)
300
50
250
40
200
30
150
20
100
10
50
0
0
2004 2005 2006 2007 2008 2009 2010 2011 2012
2012
consumption at
2006 levels
2004 2005 2006 2007 2008 2009 2010 2011 2012
Note: Energy consumption includes transmission and distribution losses
Source: REN; REE
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EDP is looking to reinforce the exportation of its competences to new
markets with historical links, growth prospects and regulatory stability…
EDP has a strong track record in electricity
generation
– Currently owns more than 23 GWs of
installed capacity

– More than 60 years of Hydropower
development experience in Portugal
and abroad

– Track record of more than 6 GW of
Hydro Projects already built

– Currently developing the largest
hydro generation program in Europe

– High efficiency levels enabling to
outperform the market

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Latin
America:
focusing on
growth
markets
with
regulatory
stability
SubSaharan
Africa:
focusing on
markets
with a
historical
and cultural
links
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…such as Mozambique and Angola in Sub-Saharan Africa…
Republic of Angola
Expected internal electricity consumption (TWh)
6,5%
CAGR
Republic of Mozambique
Expected internal electricity consumption (GW)
10%
CAGR
6.7
1,457
5.0
905
3.6
618
2010
2015
2020
2011
2015
2020
Source: EDM, McKinsey & Company
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…and Chile, Peru and Colombia in LatAm
Republic of Chile
17,4 kUSD (65% of
PT)
GDP per capita
10,2 kUSD (27% of
PT)
AA(S&P)/Aa3(Moodys)/
A+ (Fitch)
Debt rating
BBB (S&P)/
Baa2(Moodys)/BBB
(Fitch)
3,6 MWh (75% of PT)
Electricity
consumption per
capita
GDP per capita
Debt rating
Electricity
consumption per
capita
Expected installed capacity (GW)
4,1%
CAGR
16.5
Republic of Peru
19.6
1,2 MWh (25% of PT)
Expected installed capacity (GW)
23.6
Republic of Colombia
Debt rating
BBB- (S&P)/
Baa3(Moodys)/ BBB(Fitch)
Electricity
consumption per
capita
1,3 MWh (26% of PT)
Expected installed capacity (GW)
3,6%
CAGR
8,3%
CAGR
11.4
10,4 kUSD (32% of
PT)
GDP per capita
14.5
14.3
2020
2011
17.5
19.7
7.1
2011
2015
2020
2011
2015
2015
2020
Source: Central banks and statistics bureaus, rating agencies, IEA, IHS
EDP Internacional – Direcção de Investimentos
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