Enel Green Power 1H 2015 consolidated results. Rome July 29, 2015

Transcription

1 Enel Green Power Rome July 29, 2015

2 Agenda Strategic update Analysis of results Closing remarks 1

3 Enel Green Power strategic levers 1 Plants performance optimization 2 Growth 3 Portfolio management Crucial role of forefront IT systems (big data management) and best practice sharing Scheduled and predictive maintenance as a tool to optimize cost and to increase plant availability Proactive energy management Strong cash-flow generation available for growth Extensive and high quality pipeline supporting sizeable capex plan Best positioned to capture current growth momentum globally Distinctive greenfield developer capabilities as a lever to monetize projects in excess Divestment of operating assets when opportunities arise Selective value creative consolidation options A global player exploiting all strategic levers to create value 2

4 Enel Green Power strategic levers: growth cash-flow generation ( bn) cash-flow utilization ( bn) 7.9 (2.4) (0.9) (7.2) (2.9) (0.3) (0.6) 1 Cash generated Tax & interest Maint. capex FFO Portfolio mgmt Cash available Cash available Growth capex 2 3 Portfolio mgmt 4 Dividends Cash absorption Strong cash-flow generation: growth plan almost fully self-financed 1. Including delta NWC 2. Cash-in associated to France, Enel.si disposals and LaGeo settlement 3. Including North American assets developed under equity framework 4. Including SEASA, TP and ESSE debt consolidation 3

5 Enel Green Power strategic levers: growth cash-flow generation ( bn) cash-flow utilization ( bn) 10.8 (3.4) (0.8) (8.8) (0.6) (1.0) (1.3) Cash 1 generated Tax & interest Maint. capex FFO Portfolio mgmt 2 Cash available Cash available Growth capex Portfolio mgmt 3 Dividends & other Cash absorption Strong cash generation dedicated to growth 1. Including delta NWC 2. Including proceeds from sale of assets or minority stakes 3. Including consolidation of debt 4

6 Enel Green Power strategic levers: growth Additional capacity progression (GW) Growth capex by area In operation North America 15% Rest of World Europe 19% 8.8 bn 13% 53% Latin America COD 1H 2015 ENEOP Projects in execution & contracted Residual target Additional capacity >60% EBITDA from growth exceeding 1 bn 1 at regime 1. Full contribution to EBITDA of planned additional capacity at regime 5

7 COD 2016 COD Investor Relations Paved way to growth: H 2015 additional capacity Latin America Wind 259 MW Solar 31 MW Projects in execution Latin America Wind 172 MW Solar 31 MW Hydro 50 MW North America Wind 274 MW Europe Biomass 20 MW Projects in execution 2 Latin America Wind 341 MW Solar 316 MW Hydro 102 MW North America Wind 150 MW Rest of World Wind 88 MW Solar 313 MW Europe Wind 8 MW 290 MW 547 MW 1,318 MW additional capacity excluding ENEOP consolidation for 0.5GW 2. Excluding hydro refurbishments in Italy 6

8 COD 2018 COD 2017 Investor Relations Paved way to growth: Projects in execution Latin America Wind 292 MW Solar 254 MW Geo 38 MW Rest of World Wind 111 MW Europe Wind 154 MW Projects contracted Latin America Wind 90 MW Rest of World Wind 283 MW Projects in execution Latin America Wind 172 MW 849 MW 373 MW 172 MW Projects contracted Rest of World Wind 422 MW Solar 23 MW 445 MW 7

9 Upcoming renewable tenders 1 Aug Sep Oct Nov Dec Brazil A-3 2,000 MW Morocco 850 MW Mexico A Brazil Reserva 1,000 MW Brazil A-5 1,000 MW Peru --- South Africa Chile --- Italy --- Brazil Reserva 1,000 MW Chile --- Mexico A Brazil Reserva 1,000 MW Egypt 200 MW Peru --- South Africa Morocco 70 MW Kenya 300 MW Peru --- Italy --- Brazil A MW 1. Figures based on public data and EGP s expectations on overall volumes to be tendered by governments Geo Hydro Wind Solar Biomass 8

10 Active portfolio management 1 Greenfield projects monetization 2 Divestment of operating assets 3 Selective value creative consolidation options Proven capabilities to build and operate greenfield projects Projects selection based on strict return criteria Monetization of projects in excess Increasing appetite by financial investors following technology consolidation Accelerated payback period Strategic partnership to accelerate growth Strategic tool to set foot in new markets Selective non organic growth opportunities Opportunistic approach to create incremental value 9

11 Active portfolio management: divestment of operating assets Rationale of Portugal disposal Process update Limited further development after completion of ENEOP portfolio Fully operational platform in a favourable market with stable regulatory framework Expected strong appetite for operating wind assets Financial advisor on board Great interest shown by investors teased Several non-binding offers received by industrial players and financial institutions Process ongoing 10

12 Innovation Key examples Innovative business solutions: microgrids Process innovation: predictive maintenance Product innovation: energy storage Charge controller Innovative business models: micro-, mini-, smart-grids and distributed generation Battery bank Inverter EGP actively engaged in innovative process, product and business solutions 11

13 Agenda Strategic update Analysis of results Closing remarks 12

14 Highlights Robust cash-flow from operations of 900 m Accelerated growth with 1 bn of capex Strong contribution to EBITDA from new additions Completion of US minority sale and 3Sun consolidation 13

15 Cash-flow generation 1H 2015 cash-flow generation ( m) 1H 2015 cash-flow utilization ( bn) 897 (431) (342) (894) (79) 45 (804) Cash generated Delta NWC Tax & interest Maint. capex FFO Portfolio mgmt 1 Cash available Cash available (137) Growh capex Portfolio mgmt 2 (172) Dividends Cash absorption Strong operating cash-flow 1. EGP North America minority stake sale 2. 3SUN net debt consolidation 14

16 Total growth capex By geography Main projects under constructions North America % Country: Chile Plant: Finis Terrae Rest of World 139 Europe 78 16% 9% 894 m 62% Latin America 559 Capacity: 160 MW Technology: solar Country: Brazil By technology Plant: Apiacas Capacity: 102 MW Technology: hydro 22% Solar 196 Wind % 894 m 4% 15% 5% Other 35 Hydro 132 Geo 47 Country: South Africa Plant: Gibson Bay Capacity: 111 MW Technology: wind Spread over WACC bps 15

17 Capacity additions in the period Mexico Total installed capacity by area 1 Plant: Dominica II Capacity: 100 MW Technology: wind North America Panama Plant: Sureste Capacity: 102 MW Technology: wind Europe 59% 9.9 GW 21% 20% Latin America Plant: Chiriqui Capacity: 12 MW Technology: solar Total installed capacity by technology 2 Chile Plant: Talinay Poniente Capacity: 61 MW Technology: wind 9.9 GW 5% 27% Solar Hydro Plant: Lalackama II Capacity: 18 MW Technology: solar Wind 60% 8% Geo Strengthened positioning in Latin America 1. Excluding ENEOP for 0.5GW. Including 10MW of solar capacity in South Africa 2. Including 39MW of biomass 16

18 Net production analysis (GWh) +4% Wind resource index 1 16,471 (558) 1, (147) 17, H H 2015 Hydro resource index 1 1H 2014 Resource availability Additional capacity Technical availability Perimeter 2 1H % Load factor 41% 1H H Ratio between actual values for 2014/2015 and historical values (10 years for hydro and 5 years for wind) 2. Mainly related to French assets disposal 17

19 Plant performance maximization Plant energy availability Load factor 97.7% 97.8% Hydro 53% 51% Hydro 98.1% Geo 85% Geo 97.9% 85% 97.2% 97.2% Wind 33% 32% Wind 98.0% 98.0% Solar 15% 16% Solar FY H H H 2015 Opex/MW 1 at 74.5K : -2% in real terms vs. FY KPI LTM and in real terms for comparative purposes with FY 2014 of 76.1K /MW. Nominal figure = 76.2K /MW 18

20 EBITDA analysis ( m) +21% (35) (9) 62 1,078 Growth: +73 m Resource: -22 m Price: -38 m 1H 2014 Energy margin Other revenues Opex Perimeter 1 Forex 1H % EBITDA margin 68% 1. Mainly related to French assets disposal 19

21 EBITDA analysis: Latin America ( m) +95% (7) (2) (23) H 2014 Additional capacity Resource Price Other revenues Opex Forex 1H

22 EBITDA analysis: North America ( m) +34% (22) (7) 24 (9) H 2014 Additional capacity Resource Price Other revenues Opex Forex 1H

23 EBITDA analysis: Europe ( m) Italy Iberia Rest of Europe +8% (50) (24) 131 (9) (3) H 2014 Additional capacity Resource Price Other revenues Perimeter 1 Opex 1H Mainly related to French assets disposal 22

24 Group net income +17% (105) (22) 6 5 (25) 342 1H 2014 EBITDA D&A Net financial expense Equity investment Taxes Discontinued operations Minorites 1H

25 Net debt evolution ( m) FY 2014 (5,361) (677) (6,038) Net debt/ebitda = 3.3x NFCF (804) Average maturity = 5.9yrs +966 m Forex (162) Average cost of gross debt = 5.2% 1H 2015 (6,196) (808) (7,004) Current availability = 2.1 bn Tax partnership liabilities 24

26 Debt structure By currency By interest rate By maturity 1 Euro 65% 7.9 bn 7% 28% USD Other Fixed + Hedged 65% 7.9 bn 35% Floating Long-term 81% 7.9 bn 19% Short-term One-to-one third party - parent company ratio 25

27 Forward sales Italy Spain 1 91% 48% 75% 31% Hedged volumes Unhedged volumes Latin America North America 96% 91% 91% 91% Share of hedged production from capacity <

28 Long-term contracts portfolio 1 By geograhy By credit rating By remaining contract duration North America 31% 69% Latin America AA- AA 23% 27% 18% 9% 7% 3% 4% 9% A+ A A- BBB+ BBB AA yrs 89% 7% 4% >15 yrs 0-10 yrs Balanced and diversified geographical presence High quality average credit rating of A+ (investment grade) 96% with remaining average life above 10 years High quality commercial portfolio 1. Based on power revenues as of 1H

29 Agenda Strategic update Analysis of results Closing remarks 28

30 Closing remarks Visible growth route at global level Growth supported by robust cash generation Selective asset management as a strategic tool On track to achieve 2015 targets 29

31 Enel Green Power Annexes Rome July 29, 2015

32 Gross pipeline (GW) By probability of success By technology Highly confident (90%) Likely (50%) Potential (20%) June 2015 Wind Hydro Geo Solar Biomass June 2015 By geography By COD Europe North America Latin America Rest of World June >2019 June

33 Total projects in execution (MW) Business unit Wind Hydro Geo Solar Other Total Italy Greece Europe Brazil Chile Costa Rica Mexico Uruguay Latin America ,768 USA North America South Africa Rest of World Total 1, ,895 32

34 Projects under construction (MW) Business unit Wind Hydro Geo Solar Other Total Italy Greece Europe Brazil Chile Costa Rica Mexico Uruguay Latin America USA North America South Africa Rest of World Total ,793 33

35 Projects ready to build (MW) Business unit Wind Hydro Geo Solar Other Total Italy Greece Europe Brazil Chile Costa Rica Mexico Uruguay Latin America USA North America South Africa Rest of World Total ,102 34

36 Net installed capacity (MW) Business unit Wind Hydro Geo Solar Other Total Italy 720 1, ,115 Rest of Europe Bulgaria Greece Romania Iberia 1, ,836 Spain 1, ,710 Portugal Europe 3,201 1, ,835 Brazil Chile Costa Rica Mexico Panama Guatemala Latin America 1, ,988 USA 1, ,980 Canada North America 1, ,083 South Africa Rest of World Total 5,956 2, ,916 35

37 Additional capacity (MW) Business unit Wind Hydro Geo Solar Other Total Italy Rest of Europe Bulgaria Greece Romania Iberia Spain Portugal Europe Brazil Chile Costa Rica Mexico Panama Guatemala Latin America USA Canada North America South Africa Rest of World Total

38 Net production (GWh) Business unit Wind Hydro Geo Solar Other Total Italy 691 3,466 2, ,104 Rest of Europe ,084 Bulgaria Greece Romania Iberia 2, ,317 Spain 1, ,152 Portugal Europe 3,828 3,539 2, ,505 Brazil Chile Costa Rica Mexico Panama Guatemala Latin America 1,197 1, ,088 USA 2, ,433 Canada North America 2, ,582 South Africa Rest of World Total 7,900 5,786 3, ,184 37

39 Net production by technology (GWh) +4% Load factor 16,471 (222) , ,942 3,085 7,310 7,900 6,008 5,786 1H 2014 Hydro Wind Geo Solar Other 1H H H 2015 Hydro 53% 51% Wind 33% 32% Geo 85% 85% Solar 15% 16% Total 43% 41% Top notch load factor Hydro Wind Geo Solar Other 38

40 Net production by geography (GWh) +4% Load factor 16,471 (561) 1, ,184 1H H ,524 1,872 3,582 3,088 Europe 43% 41% Latin America 40% 42% 11,075 10,514 North America 45% 40% Total 43% 41% 1H 2014 Europe 1 Latin America North America 1H Includes South Africa Europe Latin America North America 39

41 Total operating capex ( m) By geography By technology By activity North America 129 Rest of World 139 Europe % 14% 14% 59% Latin America 569 Wind % 21% 5% 16% 7% Solar 202 Other 45 Hydro 152 Geo 74 Growth % 8% Maintenance 79 Total operating capex for the period = 973 m 40

42 Profit & loss ( m) 1H H 2014 Energy revenues % Revenues from incenives (43) -10% Other revenues n.m. Total revenues 1,593 1, % Direct costs (65) -33% Energy & fuel puchases (74) -46% Transmission costs % Other % Personnel costs % Operation & maintenance % G&A and other % Total costs (1) - 1H H 2014 EBITDA 1, % D&A (425) (320) (105) +33% EBIT % Net financial expense (129) (135) 6-4% Income from equity investment 6 28 (22) -79% EBT % Income tax (133) (139) 6-4% Continuing operations % Discontinued operations - (5) 5 n.m. Net income % Minorities % Group net income % 1. 1H 2014 includes a managerial reclassification of some G&A costs 41

43 Debt structure From net to gross debt ( bn) Third party debt breakdown Structured finance 0.3 bn 7% 29% Bank loans & other 1.1 bn 50% 50% Development institutions & ECAs 1.8 bn 44% 4.0 bn 20% Tax partnerships 0.8 bn Net debt June 30, 2015 Cash & equivalent Financial receivables Gross debt June 30, 2015 Third party Parent company Average maturity = 5.9yrs Average cost of debt = 5.2% Current availability = 2.1 bn 42

44 Long-term debt maturity ( m) >2019 Total Third party ,026 3,952 Parent company ,455 2,467 Total ,481 6,419 43

45 Capital structure ( m) Net fixed assets 17,106 14,337 16,672 2, (498) 9,668 7,004 Assets WIP Equity Investments NWC Other provisions Net invested capital Total equity Net debt 58% 42% 44

46 Disclaimer This presentation contains certain forward-looking statements that reflect the Company s management s current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward looking statements are based on Enel Green Power S.p.A. s current expectations and projections about future events. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Enel Green Power S.p.A. to control or estimate precisely, including changes in the regulatory environment, future market developments, fluctuations in the price and other risks. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. Enel Green Power S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation. This presentation does not constitute a recommendation regarding the securities of the Company. Pursuant to article 154-bis, par 2, of the Consolidated Financial Act of February 24, 1998, the executive in charge of preparing the corporate accounting documents at Enel Green Power S.p.A., Giulio Antonio Carone, declares that the accounting information contained herein correspond to document results, books and accounting records. 45

47 Contact us Donatella Izzo, IR manager Elena Accorinti Federico Caggia Alessandro Marchi Etienne Martoïa T: F: Web site: 46