Strategy

about us

A growing energy

Our 2014-2017 Strategic Agenda sets out our goals and the methods we have chosen to achieve success: continuous growth with low risk and attractive returns.



Our 2016-2020 Strategic Agenda sets out our goals and the methods we have chosen to achieve success: continuous growth with low risk and attractive returns.

EDP 2016-2020 Strategic Agenda in 5 points

Focused Growth
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1

EBIDTA / CAGR 20151- 20

Focused growth with an average net investment of 1.4 billion euros per year between 2016 and 2020, particularly in renewable capacity with long-term energy sale contracts, allowing for an average growth of 3% of the gross operating result per year.
Continued financial deleveraging
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2

Net debt /EBITDA

Continued financial deleveraging, aiming to achieve a threefold net debt/gross operating income ratio (EBITDA) in 2020, from an adjusted fourfold ratio in 2015. The average cost of debt is expected to drop to 4.2% by 2020.
Keeping a low risk profile
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3

long-term Regulated/ contracted EBITDA%

Keeping a low risk profile, with an outlook that in 2020 76% of the installed capacity will be renewable and the average residual life of assets will be 21 years. The percentage of gross operating income from regulated business activities or long-term power sale contracts should be 75% in 2020.
Increased Efficiency
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4

Opex/ Gross Margin

Increased efficiency is another strategic priority, and it will be implemented with a new annual costs-cutting program in order to generate savings of EUR 200 million in 2020 and EUR 700 million accumulated in the 2016-2020 period. Accordingly, the operating costs per gross margin ratio is expected to drop to 26% in 2020.
Deliver attractive returns
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5

EPS CAGR / DPS FLOOR 20151- 20

Attractive returns for shareholders: the minimum dividend payout per share increases 3%, from EUR 0.185 in 2015 to EUR 0.19 in 2016. The goal is that the dividend payout per share represents 65%-75% of the net income per share in the 2016-2020 period. As for the net income per share, it is expected to grow an average 4% per year.