EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — FY2023 Earnings Presentation
27 slides from EDP Renewables SA's earnings presentation, Feb 28, 2024
Slide 1: 2023 Results Presentation
2023 Results Picture Presentation February 28th, 2024 15:00 CET | 14:00 UK / Lisbon Cruz del Hierro www.edpr.com Spain
Slide 2: Agenda
Agenda 1 Update on Strategy Execution 2 2023 Results 3 Closing Remarks 4 Annex 2
Slide 3: Update on Strategy Execution
Update on Strategy Execution
Slide 4: High capacity additions in 4Q23, strong asset rotation gains
High capacity additions in 4Q23, in a year marked by strong asset rotation gains in a challenging context for renewables growth 2023 Main Highlights Financial Performance • 4Q23 showed a record level of new installations in a single quarter: +1.7 GW, reaching Recurring figures +2.5 GW of additions f
Slide 5: Triple renewables capacity between 2022 and 2030 required for 1.5C target
Triple renewables capacity between 2022 and 2030 is required to reach the 1.5Cº target At the core of the +50% energy transition 90% Ramp up in 2023 RES EU recommends net greenhouse capacity worldwide, the fastest gas emissions 90% reduction by growth rate in the last 20 years 2040, compared to 1990
Slide 6: 4 GW on track for 2024, 85% under construction
4 GW on track for 2024, with 85% already under construction, delivering 1.6x growth YoY EDPR continues delivering solid growth in 2023, with 2024 additions clearly identified and ~100% secured Capacity Additions 2024E Capacity Additions Under Construction Breakdown as of Today (GW) (GW; %) ~100% sec
Slide 7: Asset rotation performance stronger than expected in 2023
Asset rotation activity with a stronger than expected performance in 2023, delivering an avg. return of AR gains/ invested capital ~60% 3 AR transactions executed in 2023 in wind assets in Spain, Poland and Brazil GW 1.0 0.7 ~1.2 AR Proceeds(1) 1.7 1.7 ~1.7 2023 deals sold to strategic counterpartie
Slide 8: Acquisition of a 49% minority stake in 1.0 GW wind assets in Europe
Acquisition of a 49% minority stake in 1.0 GW wind operating assets in Europe at EV/MW of 1.2x, earnings accretive and immediate cash flow Acquisition of 49% stake in 970 MW portfolio Key Financials Rational 100% Onshore Wind €0.57bn 11y avg. age(1) 418 MW Total investment Immediate cashflow and ear
Slide 9: Improved supply chain and diversification support execution
Improved supply chain namely on deliveries and solar modules prices, plus reinforced diversification, support execution & returns’ outlook in 24/25 Supplier base diversification, strong ESG audit requirements and manufacturing origin are the key elements that define our procurement strategy Solar pa
Slide 10: Low risk profile with high long-term contracted and hedged share
Low risk profile supported by high weight of long-term contracted and hedged: ~90% for 2024, ~85% for 2025 Solid profile with generation at ~90% contracted and hedged for 2024 with hedging coverage at healthy prices. Integrated Energy Management inside EDP Group reducing risk EDPR generation mix by
Slide 11: Attractive long-term revenues secured since 2022
Attractive long-term revenues secured since 2022 for renewables projects to be delivered between late 2024 and 2025 Backlog of projects secured since 2022 to benefit from improved market context EDPR secured capacity 2023-26 by year of approval (GW) 10 GW of secured capacity with solid returns at IR
Slide 12: Focus on efficiency and organization, commitment to innovation
Focus on efficiency and streamline organization, without forgetting our commitment to innovation and new technologies Lean organization and efficient operations New technologies evolution on track as planned • Re-focusing growth >90% of the secured capacity for 2024-26 to come from 10 core markets,
Slide 13: Offshore wind projects under construction and in advanced development
OW: 2 GW of wind offshore projects under construction in France and UK, along with 1.7 GW under advanced development in Poland and US ~ 2 GW Under Construction ~1.7 ~2 GWGW Advance Development EFGL, Le Tréport & Noirmoutier B&C Wind Construction progressing as planned with CoD Approval of connection
Slide 14: 2023 Results
2023 Results
Slide 15: 2023 generation penalized by below average US wind volumes
2023 generation penalized by below average wind volumes in the US due to cyclical El Niño, with a gradual recovery expected over 2024 Below average wind resource in the US with a ~€0.2bn negative impact on EBITDA EDPR North America renewable index deviation EDPR’s portfolio wind resource deviation f
Slide 16: 2023 performance penalized by short-term headwinds
2023 performance penalized by short-term headwinds, namely delays in Colombia and US, low wind resources and windfall energy taxes in Europe Recovery in 2024 2023 €178m • 2023 generation penalized by El Niño weather event, namely in US Low wind resources less wind • El Niño continuing to impact earl
Slide 17: Recurring EBITDA -14% YoY, helped by asset rotation gains
Recurring EBITDA -14% YoY positively impacted by Asset Rotation Gains mitigating weak wind resources and lower electricity prices in Europe Recurring EBITDA per region (€m) 2022 2023 YoY YoY -14% Installed Capacity(1) GW 14.7 16.6 +12% 2,157 Electricity Generation TWh 33.4 34.6 +4% 1,845 Europe TWh
Slide 18: Net expansion investments and equity raise result in higher net debt
Net Expansion Investments of €2.9bn and €1bn equity raise result in +€0.9bn Net Debt; Organic CF driven by lower financials and minorities Net Debt Evolution from Dec22 to Dec23 (€bn) €4.2bn Expansion Capex and €0.2bn of Financial Investments, offset by €1.1bn AR Proceeds net of gains and €0.5bn of
Slide 19: Financial results decreasing YoY
Financial Results decreasing YoY driven by $/€ rebalancing strategy and efficient capitalizations despite higher gross debt Financial Results (€m) Lower YoY impacted by $/€ rebalancing along with reversion of -30% the negative impact from forex & derivatives in 2022 449 313 YoY variation also driven
Slide 20: Net Profit of €513m impacted by top line headwinds
Net Profit of €513m impacted by top line headwinds, compensated with strong execution of Asset rotation transactions and improved financials 2023 Rec. EBITDA to Rec. Net Profit (€m) Recurring Net Profit (€m) YoY 671 EBITDA (1) 1,845 (€312m) 513 (2) D&A (766) (€75m) EBIT 1,078 (€388m) Financial 2022
Slide 21: Closing Remarks
Closing Remarks
Slide 22: 2024 guidance update, continued focus on attractive returns
2024 guidance update, continued focus on attractive returns 2024 on track to deliver ~4 GW, with 85% already under construction and 100% secured at attractive long-term prices providing great visibility and resilience to energy markets volatility 2024 started with a strong Balance Sheet position, fo
Slide 23: Annex
Annex
Slide 24: 2023 additions of +2.5 GW, installed capacity reaching 16.6 GW
In 2023, EDPR additions amounted to +2.5 GW with installed capacity reaching 16.6 GW, including Asset Rotation impact Installed Capacity YTD Net Capacity Factor 2023 Electricity Generation YTD (EBITDA + Equity GW) (%) (TWh) NCF YoY 2022 14.7 2022 33.4 26% +0.01pp MW Added 2.5 ∆ MW 3.1 30% -3pp 17.2
Slide 25: Rebalancing of debt mix by currency towards assets' mix
Rebalancing of debt mix by currency towards assets’ mix: diversification of equity exposure by market, ~€100m lower int. costs estimated in 24-26 Reducing our financial exposure to USD EDPR’s financial debt per currency (%) 81% 19% Fixed Variable 14% Rebalance of debt mix by currency with asset mix
Slide 26: IR Contacts EDPR Online
IR Contacts E-mail: ir@edpr.com Phone: +34 900 830 004 Parque Empresarial ADEQUA Avda. de Burgos, 89 EDIF 1 MOD A-B 28050, Madrid - Spain EDPR Online Site: www.edpr.com Link Results & Presentations 26
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