EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — H1 2023 Earnings Presentation
24 slides from EDP Renewables SA's earnings presentation, Jul 26, 2023
Slide 1: 1H23 Results Presentation
1H23 Results Picture Presentation July 26th, 2023 15:00 CET | 14:00 UK / Lisbon www.edpr.com Los Mirasoles US
Slide 2: Agenda
Agenda 1 Update on Strategy Execution 2 1H23 Results 3 Closing Remarks 4 Annex 2
Slide 3: Update on Strategy Execution
Update on Strategy Execution
Slide 4: 1H23 Highlights: Increased visibility on execution of 23-26 plan
1H23 Highlights: Increased visibility on execution of 23-26 plan (+1.7 GW capacity secured, Asset Rotation delivery), despite short-term challenges • Secured capacity increased to 8.9 GW (+1.7 GW in 1H23), reaching 52% of target additions for 2023- 26, supported by strong demand for renewables PPAs
Slide 5: 2Q23 renewables generation penalized by below average wind volumes in US
2Q23 renewables generation penalized by below average wind volumes in US due to cyclical El Niño effect but aligned with long-term projections 2Q23 generation penalized by below avg. wind resources … as it happened in previous “El Niño” periods and fully namely in US… incorporated in long-term avera
Slide 6: Regulatory and permitting processes updates in EU support anticipation of project delivery
Regulatory and permitting processes updates in EU support anticipation of expected delivery of some projects from 2025 to 24 and 2026 to 25 Permitting acceleration examples with concrete impact >60 GW expected to be auctioned in EU in 2023 in our renewables development activity Renewables growth rem
Slide 7: Execution on track with 60% of total capacity secured installed and under construction
Execution on track with 60% of the total capacity secured already installed and under construction 52% of target additions secured of which 60% is installed or U/C EDPR capacity additions (GW) 2023 capacity additions of c.3 GW concentrated in the end of the year 52% of the 17 GW capacity additions t
Slide 8: Asset Rotation execution strong with >€1.5bn of expected proceeds in 2023
Asset Rotation execution strong with >€1.5bn of expected proceeds in 2023 at attractive multiples Asset Rotations maintaining attractive multiples showcasing the value of EDPR portfolio EDPR historical Asset Rotation transactions vs. latest closed in Spain (€m EV/MW) Increasing interest from strateg
Slide 9: Resilient long-term contracted prices and downward trend in solar equipment costs
Resilient long-term contracted prices for new renewables capacity and downward trend in global solar equipment costs Strong demand for new renewables capacity … along with recent downward pricing trends with the solar drive pricing in reg. auctions and C&I segment… manufacturing global supply chain
Slide 10: EDPR continuing to experience strong growth in the Solar DG segment
EDPR continuing to experience strong growth in the Solar DG segment (+86% YoY installed capacity) DG business growth in US driven by the combination of Growth in APAC supported by rising decarbonization traditional Behind the Meter and Community Solar targets and strong manufacturing force in the re
Slide 11: Offshore wind 16.6 GW portfolio; developing awarded projects and new growth
Offshore wind 16.6 GW portfolio; developing already awarded projects and creating new growth opportunities Strong visibility with 2 GW of gross capacity under construction, COD mostly for 2025-2026 Le Tréport Moray West 0.5 GW 2 GW 0.9 GW Operating (1.5 GW): Lower electricity selling price YoY in No
Slide 12: EDPR is the largest EU listed 100% renewables player with ESG at the core
EDPR is the largest EU listed 100% renewables player with ESG at the core of its strategy and operations YoY evolution reflecting acceleration of the growth … while seeking and promoting initiatives aligned with and the implementation of best ESG standards… the Company’s business and strategy Enviro
Slide 13: 1H23 Results
1H23 Results
Slide 14: 1H23 performance penalized by short-term impacts from regulatory interventions and delays
1H23 performance penalized by short-term impacts from regulatory interventions in Europe and delayed capacity additions in the Americas Short-term headwinds on 1H23 P&L to be temporary, not impacting medium-term earnings prospects EBITDA impact 1H23 2023 Weather cycles affecting quarterly results bu
Slide 15: Rec. EBITDA -13% YoY (ex-AR gains) penalized by weak wind and lower prices
Rec. EBITDA -13% YoY (ex-AR gains) penalized by weak wind resources, lower electricity prices/clawbacks in Europe and costs with capacity delays Recurring EBITDA per region (€m) 1H22 1H23 YoY YoY -13% Installed Capacity(1) GW 13.8 15.2 +10% ex-AR 976 gains(2) AR Gains Electricity Generation TWh 17.8
Slide 16: Net Expansion Investments of €1.8bn and €1bn equity raise result in +€0.7bn net debt
Net Expansion Investments of €1.8bn and €1bn equity raise result in +€0.7bn net debt; Organic CF impacted by working capital & interest costs Net Debt Evolution from Dec22 to Jun23 (€bn) LTM Net Debt/EBITDA €1.9bn Expansion Capex, €158m of Financial Investments and €247m AR Proceeds 1.0 +€0.7bn YTD
Slide 17: Financial Results decreasing in 2Q23 due to positive FX & Derivatives
Financial Results decreasing in 2Q23 due to positive FX & Derivatives despite higher avg. gross debt (+€0.7bn YoY) and higher cost of debt Financial Results Cost of Debt (€m) (€m) +30% YoY 4.8% 3.9% 185 192 45 (33) 159 38 147 1H22 USD EUR Other 1H23 Debt Currency and Type (%) Other € 1H22 Non-intere
Slide 18: Recurring Net Profit €102m affected by weak wind resources and one offs
Recurring Net Profit €102m affected by weak wind resources and one offs along with no Asset Rotation, to be concentrated in the 2H23 1H23 EBITDA to Net Profit (€m) YoY EBITDA 754 Regulatory one-offs and lower contribution from (€221m) top line on the back of generation offsetting additions (1) Drive
Slide 19: Closing Remarks
Closing Remarks
Slide 20: Key Takeways
Key Takeways Short-term financial performance penalized by low wind volumes in 2Q23, (incorporated in LT average assumptions), capacity delays in the Americas and 2022-2023 political intervention in EU: not impacting medium-term earnings prospects Attractive valuation in Asset Rotation transaction i
Slide 21: Annex
Annex
Slide 22: In the last 12 months, EDPR additions amounted to +2.0 GW
In the last 12 months, EDPR additions amounted to +2.0 GW with installed capacity reaching 15.2 GW, including Asset Rotation impact Installed Capacity YoY Net Capacity Factor 1H23 Electricity Generation YoY (EBITDA + Equity GW) (%) (TWh) NCF YoY 1H22 13.8 1H22 17.8 27% -1pp MW Added 2.0 ∆ MW 1.8 33%
Slide 23: IR Contacts
IR Contacts E-mail: ir@edpr.com Phone: +34 900 830 004 Serrano Galvache 56, Edificio Olmo, 7th Floor 28033, Madrid - Spain EDPR Online Site: www.edpr.com Link Results & Presentations 23
Slide 24: Slide 24