Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Presentation (June 2022)
28 slides from Edp's investor presentation, June 2022
Slide 1: Investor Presentation
Investor Presentation Lisbon, June 2022
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") Forward-looking statements include statements regarding: objectives, goals, strategies, solely for use at the presentation to be made on this date and its purpose is merely of outlook and growth prospects;
Slide 3: Global leader in the energy sector, present in 28 markets
We are a global company, leader in the energy sector, present in 28 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: 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 5: 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 9.6 GW of secured renewable capacity (3.1 GW added, 2.4 GW U/C) ~50% 20 GW of gross additions 2021-25 Asset rotation(1): ~€2.8 Bn proceeds ~8Bn proceed
Slide 6: Grow 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 Differentiation Mostly maintenance investments Solar Cost competitiveness Capture repowering, hybr
Slide 7: 9.6 GW capacity additions secured, evenly split per geography
We have +9.6 GW capacity additions secured (50%) evenly split per geography North 4.0 2.9 America Europe GW GW 46% committed 43% committed 1.5 GW 2.5 GW 0.2 GW 6.7 1.5 GW 0.9 GW 0.5 GW post 2025 8.8 20 GW1 Gross 0.4 GW post 2025 Additions 2021-25 1.4 South America 2.0 2.9 APAC 0.7 GW GW 70% committe
Slide 8: 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 9: 6 GW secured capacity for 2022-23 growth target
6 GW total secured capacity for 2022-23 represents 86% of our 2022-23 growth target, with a ramp up trend from 2022 to 2023 We are well advanced for 22-23 capacity Short-term challenges imply some transfers additions target, 6 GW already committed of capacity additions from 2022 to 2023 Annual Capac
Slide 10: ~50% of 2021-25 capacity additions target already secured
~50% of 2021-25 renewable capacity additions target already secured with 9.6 GW with reinforced medium-term growth prospects +20GW renewables target capacity additions in …with reinforced renewables medium term 2021-25, ~50% already committed… growth prospects in our key markets Renewables Capacity
Slide 11: Strong asset rotations expected in 2022
Strong asset rotations expected in 2022 with one transaction already closed contributing to the total €1.8 Bn proceeds cashed in 2021-22 Out of the 3 transactions signed for 2022, EDPR … and continues to have good prospects for the managed to execute €0.3 Bn proceeds YTD… rest of the year AR proceed
Slide 12: Costs environment translated into increased PPA pricing
Costs environment is being translated into increased PPA pricing Despite higher costs and higher contract prices… ... appetite for RES PPAs continue during 2022 +1.1 GW of long-term contracts signed YTD(2) Capex PPA avg. increased avg. price increased 5% - 15%(1) 10% - 15% YoY YoY … ~6 GW of PPAs sh
Slide 13: EDP 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 Potential upside from BRL Other 2023 onwards as hedges Floating 12% roll over 100% 31%
Slide 14: Electricity Networks: €0.5 Bn investment in 1Q22
Electricity Networks: €0.5 Bn investment in 1Q22, supported by asset base expansion in Brazil and grid digitalization & resilience in Iberia In Iberia, investment focused on digitalization In Brazil, significant expansion of asset base and efficiency improvements Financial closing of EDP Goiás acqui
Slide 15: Brazil macro context and electricity sector
Brazil macro context marked by BRL appreciation, higher inflation and interest rates; electricity sector costs alleviated by strong hydro recovery Macro context impacted by BRL appreciation and … electricity sector benefiting from stable rising inflation and interest rates… regulation and high hydro
Slide 16: 2023-25 baseload generation ~45% hedged at ~€60/MWh
2023-25 expected baseload generation ~45% hedged at ~€60/MWh, above the €45/MWh in our plan and clearly below forward prices Baseload Electricity Price Iberia 2023-2025 Expectations for 2023-2025 Average €/MWh 137 Baseload production ~45% hedged at ~€60/MWh For ~45% of expected Forward Electricity b
Slide 17: Recurring EBITDA -16% YoY
Recurring EBITDA -16% YoY penalized by the combination of extremely low hydro volumes and high energy prices context Recurring EBITDA(1,2) €m YoY growth, % -16% YoY ∆ YoY 844 710 Wind and Solar 269 EDPR Installed Capacity +13% YoY (3) +125m Wind resources +2% vs. LT avg 394 Hydro + CSEM 263 -2.6 TWh
Slide 18: Recurring Net Profit penalized by lower EBITDA
Recurring Net Profit penalized by lower EBITDA on hydro shortfall and higher financial costs in Brazil and increase of minority interests Recurring Net Profit (1) Δ YoY Recurring Net Profit €m €m EBITDA 710 -134 159 D&A and Provisions 388 -19 EBIT 322 -153 Net Financial Costs 173 -50 Income Taxes 23
Slide 19: Net Debt increased 13%
Net Debt increased 13% with the acquisition of Sunseap and CELG-T and penalized by Commodity prices and BRL appreciation Change in Net Debt € Bn 0,3 13.1 +€0.7Bn Acquisition of Sunseap +€0.3Bn Acquisition of CELG-T 1,4 +€0.4Bn Forex -€0.7Bn Regulatory Receivables 11.6 0,7 0,2 Mainly Margin Calls Net
Slide 20: Validated by SBTi on 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 2021 by 2025 by 2030 361 1762 -51% CO2 Specific Emissions(1) vs. 2015 201
Slide 21: We will deliver superior value to our shareholders
We will deliver superior value to our shareholders Superior green positioning … delivering strong earnings growth… and 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 22: Annex
Annex Investor presentation 22
Slide 23: Strengthen 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 24: 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 25: Ocean Winds total portfolio of 11 GW
Ocean Winds also continues to grow with a total portfolio of 11 GW GW Gross Total portfolio 11 GW vs ~6.5 GW in March 2021 1,5 2,6 Projects with revenues secured in Europe well protected against inflation 11 6,5 7,0 Jan-22: Awarded exclusive rights to develop 1 GW (Caledonia) in UK at the ScotWind s
Slide 26: Networks - Key highlights
Networks - Key highlights +xx Growth, 2020-25 ~€0.7 Bn annual Regulated Asset Base EBITDA to increase by 50% organic CAPEX to 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 27: 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 28: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
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