Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Presentation (September 2023)
40 slides from Edp's investor presentation, September 2023
Slide 1: Investors' Presentation September 2023
INVESTORS’ PRESENTATION September 2023
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 4 regional hubs
We are a global company, leader in the energy sector, present in 4 regional hubs throughout different stages of the value chain % Weight on EBITDA 2022 Renewables, Clients & EM North America Europe APAC ~67% Wind Solar Solar Energy onshore utility-scale DG management Wind Hydro Storage H2 Client off
Slide 4: Business Strategy
@edp Business Strategy
Slide 5: Leading the energy transition to create superior value
Leading the energy transition to create superior value Our commitments Key figures and targets Accelerated and sustainable growth €25 Bn 4.5 GW/yr >50 GW gross investment 2023-26 gross additions 2023-26 RES gross additions 2021-30 ESG excellence and future-proof organization Coal free All Green Net
Slide 6: We are consolidating our presence across technologies with differentiating value propositions
We are consolidating our presence across technologies with differentiating value propositions Wind & Solar (5.0 GW) Wind onshore ~40% Top 4 global1 player with extensive track record along the full value chain with highly experienced teams Solar Utility scale (9.4 GW) ~40% Additions ramping up quick
Slide 7: We are increasing our investment in the energy transition
Accelerated and sustainable growth We are increasing our investment in the energy transition, with a strong focus on renewables and core low-risk markets Reinforcing our investment... ... in the energy transition, across core low risk markets Annual Gross Investments1 (€ Bn) Gross Investments1 2023-
Slide 8: We are growing our distribution asset base with high visibility
We are growing our distribution asset base and we have high visibility over the upcoming period Distribution business Growing our Distribution business… ... on the back of visibility on regulatory frameworks Regulated Asset Base, € Bn RoR Regulation and Gross Investments1 Portugal Spain Brazil By 20
Slide 9: We are successfully ramping up growth with clear visibility on execution
Accelerated and sustainable growth We are successfully ramping up growth with clear visibility on execution We are scaling-up our growth rate… … and have clear visibility on execution Gross additions, GW € Bn, 2023-26 4.5 GW/yr ~181 GW €25 Bn (2023-26) Electricity Networks ~15% 4.8 ~50% 4.1 ~6x Rene
Slide 10: 1.9 GW renewables secured capacity since CMD reaching ~52% of the 2023-2026 target
1.9 GW renewables secured capacity since CMD reaching ~52% of the target for 2023-2026 Secured Capacity for 2023-2026 Growth of secured capacity supported by strong GW renewables demand % % of target additions +1.9 GW secured in since March diversified by 6 markets, mainly in EU and US, and 3 techno
Slide 11: Accelerating our leading global Solar DG business, with EBITDA expected to triple
Accelerating our leading global Solar DG business, with EBITDA expected to triple over 2023-26 Scaling solar DG business, as announced in CMD Solar DG EBITDA strong growth over 2023-26 EDP Solar DG EBITDA growth 2023-26, €bn Deployed 53 1,575 ~75% capacity MWp +30x MWp EU, US and Singapore 2019 1H23
Slide 12: We will deploy our distinctive asset rotation strategy to crystalize value
Accelerated and sustainable growth We will deploy our distinctive asset rotation strategy to crystalize value and fund additional growth opportunities ~€7 Bn AR proceeds and capital gains ~€20 Bn 4.5 GW/yr EV1 rotated track record since 2012 Upfront value crystallization ~30% Build to Sell Growth ac
Slide 13: Successful buyout of EDP Brasil minorities under a positive sector and macro context
Successful buyout of EDP Brasil minorities under a positive sector and macro context Delisting Tender Offer on EDP Brasil Positive sector and macro developments in Brazil Renewal of electricity distribution concessions Tender offer price Premium vs. previous day Released proposal (public hearing sta
Slide 14: We have diversified sources of cash to deliver on our growth
We have diversified sources of cash to deliver on our growth BP23-26 Organic Sources and Uses of Funds (€ Bn) Uses of cash Sources of cash ~€27 Bn Dividends ~3 Organic CF1 Delisting ~1 (net of maintenance ~9 EDP Brasil CAPEX) and others Asset Rotation + ~8 Expansion Disposals Investment ~23 TEI2 ~4
Slide 15: We are keeping a sound balance-sheet and low-risk profile
We are keeping a sound balance-sheet and low-risk profile 17 Reinforced commitment to 16 13 a strong BBB rating Net Debt Reached >20% FFO/ND in € Bn 2021, achieving BBB credit rating Solid cash flow generation with +€4 Bn net debt after a ~20% ~21% ~21% €25 Bn gross investments plan FFO/Net Debt 1 O
Slide 16: >€10 Bn financial liquidity covering refinancing needs beyond 2026
>€10 Bn financial liquidity covering refinancing needs beyond 2026; Successful execution of EUR pre-hedging in Jun-23 Financial liquidity New RCF Avg. nominal debt by Debt by interest as of Jun-23, €Bn signed currency rate type today as of Jun-23, % Cash & Equivalents 3.1 BRL Available Credit Lines
Slide 17: Decarbonize: For a climate-positive world
Decarbonize: For a climate-positive world -28% 0.160 Coal free by 2025 Scope 1 + 21 (tCO2e/MWh) 0.157 +2% (vs. 2020) -77% (vs. 2020) -95% -96% All green by 2030 (vs. 2020) 0.112 0.036 (vs. 2020) (vs. 2020) 0.008 0.006 Net Zero by 2040 -45% Reinforce efforts for the (vs. 2020) -90% decarbonization pa
Slide 18: Financial targets
@edp Financial targets
Slide 19: We have a distinctive and resilient portfolio, with a low-risk profile
We have a distinctive and resilient portfolio, with a low-risk profile and focused geographic presence Our distinctive and resilient portfolio… ... increasingly aligned with the Energy Transition 2026 guidance, share of EBITDA <15% <5% Iberia >95% Energy Transition at our core Rest of Europe Share o
Slide 20: We are keeping our selective and disciplined investment framework
We are keeping our selective and disciplined investment framework, delivering stronger returns throughout the cycle Attractive returns Typical metrics of project approvals1 over the last 6 months Target Achieved IRR/WACC (x) >1.4 Region Technology Unlevered project IRR2 Stronger returns and cash yie
Slide 21: We are committed to further grow and consolidate our leading energy transition portfolio
We are committed to further grow and consolidate our leading energy transition portfolio, delivering superior value Recuring Net 0.9 ~1.4-1.5 12-14% Income1, € Bn CAGR 2022-26 EBITDA, € Bn ~5.7 6% CAGR 2022-26 4.5 ~1.5 Electricity Networks 1.5 ~1.2 Hydro, Clients & EM 0.9 ~3.0 Wind & Solar2 2.2 2022
Slide 22: Delivering superior value through sustained EPS growth and a solid dividend policy
Superior value creation for all stakeholders We are delivering superior value through sustained EPS growth and a solid dividend policy with an increased floor Delivering strong earnings growth… … with an attractive dividend policy Recurring Net Income1 From… To… € Bn DPS floor €0.19 €0.19 in 2023 +1
Slide 23: 1H23 Results
1H23 Results @edp
Slide 24: Recurring EBITDA +24% YoY prompt by a recovery on hydro conditions
Recurring EBITDA +24% YoY prompt by a recovery on hydro conditions and lower electricity and gas sourcing costs Recurring EBITDA1 ,€m YoY growth, % ∆ YoY +24% 2,464 • Recovery of hydro in Portugal vs. a very weak 1H22 1,994 • Lower electricity and gas sourcing costs +€687m Hydro, +476m Clients and E
Slide 25: Recovery of hydro generation after a very weak 1H22
Recovery of hydro generation after a very weak 1H22; hydro reservoirs above average, presenting good prospects for the next months Recovery of hydro generation in 2023 Hydro reservoir levels still above average Reservoir levels in Portugal (%) Iberia Avg. Elect. Spot Price (€/MWh) 206 88 100 Hydro c
Slide 26: Net Profit of €517m, a strong increase YoY
Net Profit of €517m, a strong increase YoY after a very weak 1H22; EBIT growth partially mitigated by higher effective tax rate Recurring Net Profit1 Recurring Net Profit €m Δ YoY €m 517 EBITDA 2,464 +470 301 D&A and Provisions 860 -53 EBIT 1,604 +417 Higher EBT in Iberia and Brazil (with corporate
Slide 27: Cost of debt increase YoY prompted by US interest environment
Cost of debt increase YoY prompted by US interest environment, but stable QoQ at 3.1% excl Brazilian real; 1H22 Financial costs benefited by forex MtM Net Financial Costs Cost of Debt1 Brazil EDP excl Brazil €m €m 2.7% 3.1% -4% 434 418 416 Avg. Cost 385 49 2 of Debt -16 Excl. Brazil 51% 52% 4.5% 4.8
Slide 28: Sound financial profile with 3.2x Net Debt/EBITDA
Sound financial profile with 3.2x Net Debt/EBITDA, reinforcing recent rating upgrade; Temporary regulatory WC penalizing net debt evolution Change in Net Debt € Bn 0.8 2.0 2.0 15.3 Organic cash-flow = €0.4Bn 0.0 13.2 1.6 0.7 0.3 Net Debt Recurring Net Dividends EDP & EDPR FX and Net Debt Regulatory
Slide 29: Annex
Annex @edp
Slide 30: We strengthen our strategic targets, reinforcing our ambition to lead the energy transition
We strengthen our strategic targets, reinforcing our ambition to lead the energy transition Our commitments Key targets BP 2021-25 BP 2023-26 Accelerated and Deployment ~4 GW/year ~4.5 GW/year sustainable growth Asset Rotation €1.6 Bn/year in AR; €0.3 Bn in gains €1.7 Bn/year in AR; €0.3 Bn in gains
Slide 31: A Way for a Better Tomorrow: our ESG commitments
A WAY FOR A BETTER TOMORROW All in all – our ESG commitments Ambition Goal 2022 2026 target 2030 ambition Decarbonize: for a climate-positive SBTi: Scope 1 + Scope 2, gCO2e/kWh (% vs. 2020)1 160 (+2%) 36 (-77%) 8 (-95%) world SBTi: Scope 3 , MtCO2e (% vs. 2020)1 - - ~6Mn (-45%) Renewables generation
Slide 32: Brazil footprint and strategy is fully aligned with EDP's equity story
Distinctive and resilient portfolio Brazil footprint and strategy is fully aligned with EDP’s equity story Weight of Brazil in the Group’s EBITDA Networks Hydro, Clients & EM Wind & Solar Energias do Brasil EDP Brasil Brazil’s contribution to EDP since 1995, conventional business EBITDA Brazil Por
Slide 33: Renewables, Clients & EM
wal, fh Renewables, Clients & EM
Slide 34: We are consolidating our superior renewables' portfolio
We are consolidating our superior renewables’ portfolio, with a diversified technology mix Renewables EBITDA + Equity GW Evolution of installed capacity Geographic mix Technology mix GW, 2026 % installed capacity, 2026 % installed capacity, 2026 17% ~7 ~33 38% 2% 2% ~18 48% ~33 GW 9% ~33 GW 47% ~22
Slide 35: We are reinforcing our established onshore portfolio
We are reinforcing our established onshore portfolio, focusing on our core low-risk markets Onshore portfolio Target onshore additions 2023-26 Breakdown in % of total onshore additions EDP regional hubs North America Europe South America APAC 7.4 ~43% 5.9 ~35% 2.5 ~15% 1.2 ~7% GW GW GW GW Substantia
Slide 36: OW has been building a sizeable and attractive offshore portfolio
OW has been building a sizeable and attractive offshore portfolio, providing significant visibility on growth over the next 10-15 years Offshore wind, GW Ocean Winds continues to grow with a total … which provides strong visibility on growth portfolio of 16.6 GW… post 2026 U/C Under dev. Floating Bo
Slide 37: Networks
Networks Investors’ Presentation 38
Slide 38: Growing and diversifying our low-risk networks portfolio
We have been growing and diversifying our low- risk networks portfolio, acting as a portfolio stabilizer for the group Electricity Networks Resilient portfolio We are a top player in the … with strong track to volatile macro environments networks business… record and expertise Top tier grid operator
Slide 39: Investing in innovation and digitalization in our networks
We are investing in innovation and digitalization, to deliver superior quality of service in our networks Distribution business Lead in innovation and digitalization… … enhancing quality and resilience… Average SAIDI1 across concessions, Min ~€0.9 Bn 100% investment in smart meters 405 -12% digitali
Slide 40: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Investor presentation 41
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