Slide 1: Investor presentation Q1 2024
Investor presentation Q1 2024 2 May 2024
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements which include projections of our short- and long-term financial performance and targets as well as our financial policies. Statements herein, other than statements of historical fact, regarding our future results of operations,
Slide 3: Q1 2024 highlights
Q1 2024 highlights Strong business developments through award, project bids, and strategic portfolio decisions • Sunrise Wind offshore wind farm selected for award in New York Round 4 • Bid submitted in the Taiwanese Round 3.2 auction for an award of Greater Changhua 3 offshore wind farm • Participa
Slide 4: Successful rebid of our 924 MW Sunrise Wind project
Successful rebid of our 924 MW Sunrise Wind project Sunrise Wind project significantly de-risked • Submission of bid into New York’s fourth offshore wind auction to secure higher offshore renewable energy certificate (OREC) • Sunrise Wind selected for OREC award • Negotiation of 25-years OREC agreem
Slide 5: Executing on our projects under construction
Executing on our projects under construction Offshore (7.6 GW) Onshore (1.6 GW) Changhua South German Changhua Revolution Sunrise Hornsea 3 Europe US 1 and 2a Fork programme 2b and 4 Wind Wind Capacity1 900 MW 130 MW 1,166 MW2 920 MW 704 MW 924 MW 2,852 MW 215 MW5 1,394 MW6 COD Q2 2024 Q2 2024 2024/
Slide 6: Offshore sites as key driver for increased earnings
Offshore sites as key driver for increased earnings EBITDA1 of DKK 7.5 billion in Q1 2024, up 8 % vs. last year EBITDA excluding new partnerships and cancellation fees • Offshore sites earnings increased 18 % driven by: Q1 2023 6,910 - Ramp-up generation at Greater Changhua 1 & 2a and South Fork - H
Slide 7: Net profit, ROCE, and Equity
Net profit, ROCE, and Equity Net profit Adjusted ROCE1 Equity Equity excl. hedging reserves DKKbn %, last 12 months DKKbn Hedging reserves 3.2 13.8 83.3 77.8 12.5 2.6 88.0 94.0 -10.3 -10.7 Q1 2023 Q1 2024 31 Mar 2023 31 Mar 2024 31 Dec 2023 31 Mar 2024 1 Net profit of DKK 2.6 bn Adjusted ROCE of 12.
Slide 8: Net interest-bearing debt and credit metric
Net interest-bearing debt and credit metric Net interest-bearing debt FFO / Adj. net debt DKKbn % 7.6 0.7 37 1.4 49.9 47.4 -3.7 -3.6 19 31 Dec 2023 CFO Gross Divestments Issuance of Other 31 Mar 2024 31 Mar 2023 31 Mar 2024 investments hybrid capital Net interest-bearing debt of DKK 49.9 bn, up DKK
Slide 9: Non-financial ratios
Non-financial ratios Taxonomy-aligned KPIs Renewable share of energy generation Safety %, YTD %, YTD Total recordable injury rate, YTD 97 2.9 89 2.7 Revenue 91 31 Mar 2023 31 Mar 2024 31 Mar 2023 31 Mar 2024 CAPEX 99 Renewable share of energy at 97 % TRIR of 2.9 • Higher generation from ramp-up gene
Slide 10: 2024 guidance re-iterated
2024 guidance re-iterated EBITDA EBITDA in 2024 excluding new partnership agreements and impact from potential cancellation fees relating to ceasing the development of Ocean Wind 1, is unchanged and expected to amount to DKK 23-26 billion Gross investments Gross investments in 2024 are expected to a
Slide 11: Q&A
Q&A
Slide 12: Appendix
Appendix Orsted
Slide 13: Disclosure summary
Disclosure summary Strategic ambition and financial targets Year Financial policies Ambition for installed renewable capacity ~35-38 GW Target a solid investment grade rating with Moody’s/S&P/Fitch - Offshore ~20-22 GW - Onshore ~11-13 GW By 2030 FFO to adjusted net debt above 30 % - P2X ~1 GW - Bio
Slide 14: Group – Financial highlights
Financials Group – Financial highlights Financial highlights Q1 2024 Q1 2023 D FY 2023 FY 2022 D EBITDA DKKm 7,488 6,910 8% 18,717 32,057 (42 %) - New partnerships - - n. a. 4,324 10,993 (61 %) - Cancellation fees - - n.a. (9,621) - n.a. EBITDA excl. new partnerships and 7,488 6,910 8% 24,014 21,064
Slide 15: Offshore – Financial highlights
Financials Offshore – Financial highlights Financial highlights Q1 2024 Q1 2023 D FY 2023 FY 2022 D EBITDA DKKm 6,083 5,412 12 % 13,817 19,569 (29 %) • Sites, O&Ms and PPAs 6,928 5,859 18 % 20,207 9,940 103 % • Construction agreements and divestment gains (283) (42) 574 % 5,218 12,277 (57 %) Wind sp
Slide 16: Onshore – Financial highlights
Financials Onshore – Financial highlights Financial highlights Q1 2024 Q1 2023 D FY 2023 FY 2022 D EBITDA DKKm 816 834 (2 %) 2,970 3,644 (18 %) • Sites 303 324 (6 %) 1,256 2,097 (40 %) • Production tax credits and tax attributes 743 759 (2 %) 2,567 2,556 0% Wind speeds, m/s • Other, incl. project de
Slide 17: Bioenergy & Other – Financial highlights
Financials Bioenergy & Other – Financial highlights Financial highlights Q1 2024 Q1 2023 D FY 2023 FY 2022 D EBITDA DKKm 434 517 (16 %) 1,523 8,619 (82 %) • CHP plants 587 845 (31 %) 1,218 5,851 (79 %) • Gas Markets & Infrastructure (79) (237) (67 %) 558 3,117 (82 %) • Other, incl. project developme
Slide 18: Capital employed
Financials Capital employed Capital employed, DKKm Q1 2024 Q1 2023 Capital employed by segment %, Q1 2024 Intangible assets, and property and equipment 191,318 186,799 Offshore Onshore Assets classified as held for sale, net - - Bioenergy & Other Equity investments and non-current receivables 1,031
Slide 19: FFO/Adjusted net debt calculation
Financials FFO/Adjusted net debt calculation Funds from operations (FFO) LTM, DKKm 31 Mar 2024 31 Dec 2023 31 Mar 2023 EBITDA 19,295 18,717 29,538 Change in provisions and other adjustments 6,803 8,742 (1,538) Change in derivatives (122) 4,274 434 Variation margin (add back) (5,718) (7,086) 1,419 Re
Slide 20: Taxonomy-aligned KPIs
Financials Taxonomy-aligned KPIs Incl. voluntary disclosures Unit Q1 2024 Q1 2023 D 2023 Revenue (turnover) DKKm 19,168 25,719 (25 %) 79,255 Taxonomy-aligned revenue (turnover) % 91 84 7 %p 86 - Electricity generation from solar PV and storage of electricity % 1 0 1 %p 1 - Electricity generation fro
Slide 21: Energy and currency exposure
Financials Energy and currency exposure Merchant exposure Q2 2024 – Q4 2026 Currency exposure Q2 2024 – Q1 2029 DKKbn DKKbn Before hedging Before hedging After hedging via as-produced PPAs and traded markets After hedging 40.2 26.8 19.4 6.5 4.6 11.7 4.9 4.5 0.1 -3.6 -0.2 -0.1 -0.1 Power Gas Oil Spre
Slide 22: Key financial exposures from revenues in 2024-2030
Financials Key financial exposures from revenues in 2024-2030 Inflation-indexed revenue Fixed nominal revenue Merchant revenue 20% 35% 45% • Prioritise inflation-indexed revenue • Debt used to de-risk fixed nominal • Corporate PPAs used to de-risk to protect against cost inflation and revenue from a
Slide 23: Risk management of interest rate- and inflation risk
Financials Risk management of interest rate- and inflation risk Fixed-rate debt and hedges used to protect fixed Net inflation-linked operational cash flows in the period nominal cash flows against interest rate increases 2024-2030 protects against cost inflation ~60% matched ~50% matched Present va
Slide 24: Liquidity reserve remains significantly above target
Financials Liquidity reserve remains significantly above target Collateral and margin postings Liquidity reserve DKKbn DKKbn 7.9 90.7 7.4 76.0 4.0 4.4 2.6 2.0 1.2 1.0 Dec 2023 Mar 2024 Dec 2023 Mar 2024 Initial margin Cash, available Variation margin Securities, available Credit support annex and ot
Slide 25: Debt and hybrids overview
Financials Debt and hybrids overview Total gross debt1 and hybrids Effective funding costs – Gross debt1 Maturity profile of notionals of gross debt1 31 March 2024, DKKbn 31 March 2024, DKKbn >90 % of gross debt1 (bond and bank debt) fixed interest 34.4 rate. Remainder floating or inflation-linked B
Slide 26: Hybrid capital in short
Financials Hybrid capital in short Hybrid capital can broadly be defined as funding Due to hybrid’s equity-like features, rating Accounting treatment instruments that combine features of debt and agencies assign equity content to the hybrids equity in a cost-efficient manner: when calculating centra
Slide 27: Ørsted's outstanding senior bonds
Financials Ørsted’s outstanding senior bonds Outstanding Fixed/Floating Green Allocated to green Avoided emissions (thousand Bond Type Issue date Maturity Face Value Coupon Coupon payments amount rate bond projects (DKKm) tons CO2/year) Senior Unsecured Nov. 2017 26 Nov. 2029 EUR 750m EUR 750m Fixed
Slide 28: Renewable capacity as of 31 March 2024
Build-out & market development Renewable capacity as of 31 March 2024 Indicator, MW, gross Q1 2024 Q1 2023 Δ 2023 Installed renewable capacity Installed renewable capacity The installed renewable capacity is calculated as 15,740 15,478 262 15,731 renewable gross capacity installed by Ørsted Offshore
Slide 29: Promising renewable energy market outlook
Build-out & market development Promising renewable energy market outlook Offshore wind Onshore renewables Power-to-X (P2X) Installed capacity (excl. China), GW Installed capacity (excl. China), GW Electrolyser capacity, GW2 ~133 ~3,840 ~260 28 APAC ~1,000 RoW1 15 Americas 130 RoW1, 3 x2.5 x6 ~800 AP
Slide 30: Offshore wind build-out plan as per 31 March 2024
Build-out & market development Offshore wind build-out plan as per 31 March 2024 Installed capacity MW 1,255 19,220 Under construction 1,498 924 16,467 Awarded 2,852 920 704 1,166 130 900 8,871 Installed Greater German South Fork Greater Revolution Hornsea 3 Sunrise Wind Decided Baltica 2 Baltica 33
Slide 31: Onshore build-out plan as per 31 March 2024
Build-out & market development Onshore build-out plan as per 31 March 2024 Installed capacity MW Under construction 471 67 24 124 6,403 600 73 4,794 250 Installed capacity Sparta1 Eleven Mile Old 3003 Mockingbird German French Irish Portfolio6 Decided (FID’ed) Q1 2024 portfolio4 portfolio5 and insta
Slide 32: Offshore market development – Europe (1/2)
Build-out & market development Offshore market development – Europe (1/2) • Commitment to decarbonise electricity system by 2035 and binding target to reach net-zero emissions across the whole economy by 2050 • The Administrative Strike Price for CfD Allocation Round 6 was set in late 2023 at £73 fo
Slide 33: Offshore market development – Europe (2/2)
Build-out & market development Offshore market development – Europe (2/2) • The government targets to deliver 21 GW by 2030 Netherlands • IJmuiden Ver (2 x 2 GW) tender closed 28 March 2024. Award decision due within 13 weeks. Government opted for a tender design that includes a capped payment and q
Slide 34: Offshore market development – US
Build-out & market development Offshore market development – US • Target of 9 GW offshore wind by 2035; approximately 5.7 GW awarded New York • State issued awards in NY 4 "rebid" RFP in Q1 2024, including for Sunrise Wind • Request for information (RFI) announced in planning of a fifth offshore win
Slide 35: Offshore market development – APAC
Build-out & market development Offshore market development – APAC • Taiwan has awarded 5.5 GW to be commissioned by 2025. Target of 20.6 GW offshore wind by 2035 Taiwan • Third round auction announced with 15 GW offshore wind target to be commissioned from 2026-2035 (1.5 GW per year) • Auction round
Slide 36: Significant offshore wind capacity expected to be auctioned in 2024/2025
Build-out & market development Significant offshore wind capacity expected to be auctioned in 2024/2025 Upcoming auctions and tenders Award expected Award expected Q3 2024 Q3 2024 2024 Q3-Q4 2024 Q3 2024 1 Q3 2024 1 (tentative RFP issue) New Jersey 4 CfD AR6 Seabed auctions Rhode Island Connecticut
Slide 37: Renewable hydrogen & e-fuels
Power-to-X Renewable hydrogen & e-fuels Signals for significant market growth Ørsted Power-to-X highlights during Q1 2024 Actioning critical regulatory files in the EU and the US Ørsted selected by US DOE for funding EU’s REDIII entered into force in November and is being Ørsted’s planned Project St
Slide 38: ESG Performance
ESG ESG Performance Total heat and power generation, Q1 2024 Greenhouse gas emissions intensity Gender balance Energy source, % CO2e/kWh %, women/men Scope 1-3 (excl. natural gas sales) Total workforce Scope 1-2 2030 40/60 Offshore wind 40 Science- based 2023 34/66 Onshore wind 23 targets2 2022 33/6
Slide 39: Industry-leading sustainability initiatives and ESG rating performance
ESG Ørsted has been named the world’s most sustainable energy developer in Corporate Knights’ 2024 Global 100 index Industry-leading sustainability initiatives ESG rating performance Science-aligned climate action We are the first energy company with a science-based net-zero target for the full valu
Slide 40: Our publications
ESG To prepare for the Corporate Sustainability Reporting Directive (CSRD), we have conducted a E Science-aligned Green energy that S A green transformation G Governance that enables double materiality climate action revives nature that works for people the right decisions assessment (DMA) for the A
Slide 41: Investor Relations contacts
Rasmus Hærvig Henriette Stenderup Head of Investor Relations Investor Relations Coordinator rakol@orsted.com hnste@orsted.com Sabine Lohse Valdemar Høgh Andersen Lead Investor Relations Officer Senior Investor Relations Officer sablo@orsted.com vehan@orsted.com