Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Presentation (September 2022)
31 slides from Edp's investor presentation, September 2022
Slide 1: Investors' Presentation September 2022
INVESTORS’ PRESENTATION September 2022
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") solely Forward-looking statements include statements regarding: objectives, goals, strategies, for use at the presentation to be made on this date and its purpose is merely of informative outlook and growt
Slide 3: We are a global company, leader in the energy sector, present in 29 markets
We are a global company, leader in the energy sector, present in 29 markets throughout different stages of the value chain % Weight on EBITDA 2021 ~62% Renewables Wind, Solar & Hydro ~36% Networks Distribution Transmission 21% 32% EBITDA Client solutions & €3.7 Bn ~3% energy management 20% New Clien
Slide 4: Business Strategy Execution
Business Strategy Execution
Slide 5: We have started this journey in Renewables and are committed to lead the Energy Transition
We have started this journey in Renewables over 2 decades ago and are committed to continue to lead the Energy Transition By 2025 By 2030 €24 Bn >50 GW CAPEX in energy transition renewables additions Leading the energy transition to create superior value 4 GW/yr 100% renewables deployed renewables g
Slide 6: Strategic commitments on track to deliver superior value creation
Strategic commitments on track as we step up to the challenge to deliver superior value creation in a challenging context Execution 2021-2025 Target 10.8 GW of committed renewable capacity ~54% 20 GW of gross additions 2021-25 (3.2 GW added, 3.2 GW U/C) Asset rotation(1): ~€3.1 Bn proceeds ~8Bn proc
Slide 7: We will grow our presence across technologies, with differentiating value propositions
We will grow our presence across technologies, with differentiating value propositions Strong visibility Hydro Global leadership Extensive pipeline with Top 4 global player additions ramping up quickly Mostly maintenance investments Differentiation Cost competitiveness Solar Cash generator Capture r
Slide 8: We have +10.8 GW capacity additions secured evenly split per geography
We have +10.8 GW capacity additions secured (54%) evenly split per geography 4.3 3.4 North America GW Europe GW 49% committed 51% committed 1.5 GW 2.8 GW 0.2 GW 6.7 1.5 GW 0.8 GW 1.0 GW 0.2 GW post 2025 8.8 20 GW1 0.3 GW Gross post 2025 Additions 2021-25 1.4 2.2 South America 2.9 APAC 0.9 GW GW 76%
Slide 9: We will deliver unparalleled investment levels aligned with the energy transition
We will deliver unparalleled investment levels fully aligned with the energy transition Significant investment … with strong focus on Renewables, across acceleration… key markets in Europe and North America CAPEX1, € Bn/yr CAPEX1, Cumulative, € Bn, 2021-25 +65% 4.8 ~80% ~40% Renewables Europe ~15% ~
Slide 10: RepowerEU plan to address energy security and affordability concerns
RepowerEU plan presented in May to address energy security and affordability concerns on top of Fit for 55 decarbonization targets RepowerEU targets imply renewables capacity growth by 2.5x, to 1.2 TW by 2030 Improvements EU Renewables1 capacity until 2030 Digitalized procedures GW Faster x2.5 Reinf
Slide 11: Entrance into German solar PV market with acquisition of development platform
Entrance into German solar PV market with the acquisition of a development platform with a portfolio of 9.4GW of projects Reinforcing EDPR’s presence in low-risk EU ..with acquisition of Kronos, a solar PV development countries, mainly Germany … platform based in Germany with a strong track record A
Slide 12: EDP reinforces positioning on RepowerEU opportunity across 12 European markets
EDP reinforces its positioning on RepowerEU opportunity, extending presence into 12 European markets covering 90% of EU Solar PV growth EDP extends its presence into 12 European markets… … representing ~90% of EU Solar PV growth expected until 2030 EDP current presence Complementary markets RepowerE
Slide 13: EDP has 54% of its 2021-25 target capacity additions committed
EDP has 54% of its 2021-25 target capacity additions committed, with record capacity under-construction at 3.2 GW Capacity Breakdown Committed renewables capacity additions 21-25 APAC 8% EDP committed capacity vs. its +20GW Europe 10% 1% South renewables capacity growth target 2021-25 America 20% 32
Slide 14: Strong asset rotation activity in 2022, increasing secured proceeds to €3.1bn
Strong asset rotation activity in 2022, increasing secured proceeds for 2021-25 to €3.1bn, ~40% of the €8bn total proceeds target for 2021-25 Out of the 4 transactions signed for 2022, EDPR … and continues to have good prospects for the rest of managed to execute €0.6bn proceeds YTD… the year AR pro
Slide 15: EDP well protected against inflationary and interest rate pressures
EDP well protected against inflationary and interest rate pressures with >70% of non-fixed revenues and ~70% of fixed rate debt EDP Revenues(1) with limited exposure to inflation Debt breakdown by rate & currency Other Potential upside from 2023 BRL onwards as hedges roll over Floating 15% 30% 100%
Slide 16: €0.7 Bn investment in electricity networks in 1H22
€0.7 Bn investment electricity networks in 1H22, supported by asset base expansion in Brazil and grid digitalization & resilience in Iberia Growth investment in electricity networks Inflation protection Investments (€ Bn) Rate of Return indexed to bond yields1 RoR at 4.9% in 1H22 +2x 0.7 Portugal In
Slide 17: Regulatory framework in Portugal provides stable prices for residentials
Despite high electricity wholesale price, regulatory framework in Portugal provides stable prices for residentials and continuous system debt decline Wholesale Price vs Renewables FiT Reg. Electricity Tariff components Electricity System Debt €/MWh Residentials end-user tariffs2; €Bn4 1 3 Renewable
Slide 18: On ESG we have been validated by SBTi on our carbon neutral targets
On ESG we have been validated by SBTi on our carbon neutral targets as we continue to pave the way towards decarbonization ESG excellence and attractive returns Coal Carbon Environment free neutral 75% renewables generation in 1H22 by 2025 by 2030 361 1762 -55% CO2 Specific Emissions(1) vs. 2015 201
Slide 19: We will deliver superior value to our shareholders
We will deliver superior value to our shareholders Superior green positioning and … delivering strong earnings growth… accelerated growth… Net income2, € Bn 9% p.a. All green ~1.2 2x by 2030 ~0.8 ~1.0 solar + wind installed capacity by 2025 €24 Bn >95% 20212 2023 2025 energy transition energy transi
Slide 20: 1H22 Results
1H22 Results @edp
Slide 21: Recurring EBITDA +19% YoY
Recurring EBITDA +19% YoY prompt by good performance of Wind & Solar and Electricity Networks despite the penalizing Iberian hydro shortfall Recurring EBITDA(1,2) €m YoY growth, % ∆ YoY +19% YoY 1,994 1,678 +13% EDPR Installed Capacity +10% YoY excl. FX 976 +321m Wind resources +2% vs. LT avg Wind a
Slide 22: Recurring Net Profit penalized by weak hydro in Iberia
Recurring Net Profit penalized by weak hydro in Iberia, higher financial costs in Brazil and increase of minority interests Recurring Net Profit (1) Recurring Net Profit €m Δ YoY €m 326 301 EBITDA 1,994 +316 D&A and Provisions 807 -81 EBIT 1,187 +235 Net Financial Costs 385 -130 Income Taxes 145 +19
Slide 23: Net Debt increased 22% with acceleration of expansion investment
Net Debt increased 22% with the acceleration of Net expansion investment and annual dividend payment in 2Q22 Change in Net Debt € Bn 0.2 14.2 +€3.6 Bn Gross Expansions Investments 0.7 -€1 Bn Asset Rotation Proceeds +€0.4 Bn Forex -€0.6 Bn Regulatory Receivables 2.4 11.6 0.4 Net Debt Organic CF Net E
Slide 24: Annex
Annex @edp
Slide 25: We will deliver superior value, while keeping a solid balance sheet
We will deliver superior value, while keeping a solid balance sheet and low-risk profile 2021 2023 2025 CAPEX1, € Bn/yr Step-up investment plan with 3.9 4.5 4.6 +1 Bn 2025 vs. 20 renewables focus EBITDA2, € Bn Increased results with distinctive 3.7 4.2 4.7 +6% CAGR 2020-25 energy transition profile
Slide 26: We will strengthen our leadership position in Wind Onshore
We will strengthen our leadership position in Wind Onshore Pipeline as of Dec 2020 Target additions 2021-25 (GW) Current presence1 XX % in additions XX Total installed capacity We have a strong onshore presence across the globe … consolidating leadership that will be reinforced… and exploring growth
Slide 27: We will build a sound market presence in Solar
We will build a sound market presence in Solar Pipeline as of Dec 2020 Target additions 2021-25 (GW) Current presence1 XX % in additions XX Total installed capacity We have robust secured additions and strong pipeline in solar… … adopting a differentiated approach to clients Rest of North America2 E
Slide 28: Ocean Winds also continues to grow with a total portfolio of 14.6 GW
Ocean Winds also continues to grow with a total portfolio of 14.6 GW GW Gross 1.5 3.6 Projects with revenues secured well protected against inflation (France, UK, Poland) 14.6 9.5 Floating offshore development projects in South Korea: 6.6 grid access secured in Jan-22/Mar-22 for 1.3 GW Caledonia sea
Slide 29: Networks - Key highlights
Networks - Key highlights +xx Growth, 2020-25 ~€0.7 Bn annual Regulated Asset Base to EBITDA to increase by 50% organic CAPEX increase by ~€2 Bn EBITDA, € Bn CAPEX1, € Bn RAB2, € Bn 5% p.a. excluding Viesgo acquisition 3.4 40% 7.1 1.3 0.1 8% p.a. 1.0 0.1 1.0 0.3 5.1 1.3 0.9 0.6 0.1 0.8 0.2 2.2 4.8 0
Slide 30: Client Solutions & Energy Management - Key highlights
Client Solutions & Energy Management - Key highlights ~€0.2 Bn annual CAPEX Step-change growth in Solar DG EBITDA to increase by 15% CAPEX, € Bn1 Cumulative contracted PV, GWP3 EBITDA, € Bn 30% p.a. Client Solutions 2% p.a. 0.9 2.2 0.5 0.4 Solar DG and 0.1 X10 e-mobility Solar DG and e-mobility 0.6
Slide 31: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Investor presentation 31
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