Get to know the EDP’s Business Plan 2016-2020
The EDP Group's new Business Plan was presented in London, during the EDP Capital Markets Day.
EDP will continue focused on the execution of its strategic agenda through five levels:
- ?focused growth with Net Investments: avg. €1.4bn/year in 2016-2020, 84% of which on Regulated & LT contracted activities, to raise the EBITDA in 3%;
- continue financial deleveraging, with higher visibility of medium long term free cash flows consistent with Net Debt/EBITDA target of ~3.0x. The average cost of debt will down 4,2%, in 2020;
- keep low risk profile, with the perspective of regulated and LT Contracted at 75% of EBITDA, and weight of renewables up from 71% to 76%, by 2020, and an average residual asset life of 21 years.
- reinforce efficiency, with targeting annual cost savings of €200m, by 2020, and accumulated savings on €700m, mostly from Iberian business, O&M, IT and HR, between 2016 and 2020.
- deliver attractive returns: dividend floor increases by 3%, from €0,185/share to €0.19/share. The target is to reach a payout ratio between 65% and 75%.