EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — FY2022 Earnings Presentation
22 slides from EDP Renewables SA's earnings presentation, Feb 28, 2023
Slide 1: 2022 Results Presentation
2022 Results Picture Presentation February 28th, 2023 14:30 CET | 13:30 UK / Lisbon www.edpr.com
Slide 2: Agenda
Agenda 1 Update on Strategy Execution 2 2022 Results 3 Closing Remarks 4 Annex 2
Slide 3: Update on Strategy Execution
Update on Strategy Execution
Slide 4: Strong results in 2022 sustained by top line performance
Strong results in 2022 sustained by top line performance Growth • Revenues €2.4bn (+35% YoY) on the back of strong operational performance and higher avg. selling price • Installed capacity +9% YoY, renewables generation +10% YoY • Avg. selling price at €65/MWh, +21% YoY with the increase driven mos
Slide 5: Higher than expected demand for quality RES assets, EDPR again surpassed asset rotation targets
Higher than expected demand for quality RES assets, in 2022 EDPR has again surpassed its BP targets in terms of Asset Rotation AR net MW AR Gains/year NPV/Capex (GW) (€bn) (%) AR Proceeds 1.4 +1.4x 0.4 ~34% < 1.0 ~0.3 >25% BP Guidance Executed 2022 BP Guidance Executed 2022 BP target NPV/Capex AR Ga
Slide 6: Significantly lower clawback costs expected for 2023
Significantly lower clawback costs on unrealized profits expected for 2023 due to prices decline & positive regulatory developments Forward electricity prices 2023(1) Clawback costs in EU in 2022: €98m Romania (Romania, Poland and Italy) 600 500 136 Significant decline of electricity prices to 400 €
Slide 7: Positive development on offshore wind execution with >80% revenues secured
Positive development over 2022 on offshore wind execution with >80% of revenues secured portfolio in Europe with inflation linked Net capacity secured revenues by market as of Dec22 1.5 GW in operation with operational outperformance 3% +1 GW started construction in Jul22 (Moray West) 13% +1 GW very
Slide 8: Dividend policy upgraded to 30-50% payout range with scrip dividend
Dividend policy upgraded to target 30-50% payout range with scrip dividend providing optionality to EDPR shareholders EDPR dividend policy vs Peers EDPR Scrip Dividend (cash vs newly issued shares) Payout ratio (%) Scrip dividend programme structured by a bonus Current issue 13 (2021) Shareholders m
Slide 9: 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 being recognised by its ESG commitments and and the implementation of best ESG standards… initiatives aligned with the Company’s strate
Slide 10: Since the last CMD, we have scaled-up delivery
Since the last CMD, we have scaled-up delivery, on the back of expansion, impressive asset rotation execution and strong top line Growth 11.4 GW secured capacity including 4.0 GW under construction supporting the additions for 2023 and beyond (vs. +4 GW/year BP2021-25) Our offshore portfolio increas
Slide 11: 2022 Results
2022 Results
Slide 12: Solid operational performance on higher installed capacity and stronger resources
EDPR continues to deliver solid operational performance on the back of higher installed capacity and stronger resources Installed Capacity YoY Net Capacity Factor 2022 Electricity Production YoY (EBITDA + Equity MW) (%) (TWh) 2021 13,580 NCF YoY 2021 30.3 MW 26% -0.1pp 2,121 Added ∆ MW 2.3 15,701 33
Slide 13: EBITDA +40% YoY ex-AR gains backed by outstanding top line performance
EBITDA +40% YoY ex-AR gains backed by outstanding top line performance partially offset by regulatory clawbacks EBITDA per geography (€m) YoY +23% +17% YoY ex-AR gains 2021 2022 YoY ex-fx +40% 2,157 Installed Capacity(1) GW 13.6 14.7 +9% Asset Rotation Gains 424 -19% YoY 1,760 Renewables Index (vs.
Slide 14: Financial Results increase driven by higher cost of debt and debt
Financial Results increase mainly driven by rise in avg. cost of debt and avg. financial debt, as well as negative fx & derivatives impact Avg. Cost of Debt Financial Result increase (%) (%) Financial result +0.6pp €449m 81% 33% 4.0% 31% 3.4% 7% 9% Financial Interest Fx & Fx TEI Costs Other Results
Slide 15: Net Debt evolution driven by €2.4bn Net Expansion Investments
Net Debt evolution driven by €2.4bn Net Expansion Investments offset by €0.8bn Recurring Organic CF Net Debt Evolution from Dec-21 to Dec-22 (€bn) Net Debt/EBITDA €3.4bn Capex €1.7bn of Financial Investments, including: • €0.7bn Acquisition of Sunseap(1) • €0.5bn Solar portfolio acquisitions(2) 0.1
Slide 16: Recurring Net Profit at €671m
Recurring Net Profit at €671m (+2% YoY, +57% YoY ex gains), driven by strong top line evolution partially offset by higher financial costs 2022 EBITDA to Net Profit 2022 Recurring Net Profit Breakdown (€m) (€m) YoY YoY +2% YoY ex-AR gains EBITDA 2,157 +€397m 655 671 (1) D&A (746) (€137m) 384 AR Gain
Slide 17: Closing Remarks
Closing Remarks
Slide 18: Key Takeaways
Key Takeways Strong top line performance in 2022, driven by increase in generation and avg. realized price resulting in EBITDA of €2.2bn (+23% YoY; +40% YoY ex-gains) and recurring Net Profit of €671m (+2% YoY), excluding Asset Rotation gains +57% YoY Ongoing impressive Asset Rotation execution agai
Slide 19: Annex
Annex
Slide 20: EDPR Scrip Dividend programme provides optionality
EDPR Scrip Dividend programme provides optionality Each shareholder receives an incorporation right per share having the following options: Do not sell Sell their rights Sell their rights The programme should be structured their rights to EDPR on Euronext Lisbon through a bonus issue Timing to be de
Slide 21: 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 21
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