Slide 1: Investor presentation Q2 2022
Investor presentation Q2 2022 11 August 2022
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements which include projections of our short- and long-term financial performance and targets as well as our financial policies, including but not limited to, the statements and expectations contained in the “Financial Outlook” secti
Slide 3: Strategic highlights – Q2 2022
Hornsea 3 awarded CFD and Onshore renewables expansion into Continental Europe. Full-year guidance increased Strategic highlights – Q2 2022 • Full-year guidance increased by DKK 1 billion to DKK 20 - 22 billion • Awarded a contract for difference for our 2,852 MW Hornsea 3 offshore wind project in t
Slide 4: Awarded contract for world’s single biggest offshore wind farm
Awarded contract for world’s single biggest offshore wind farm Hornsea 3 • Capacity of 2,852 MW at an inflation-indexed strike price of GBP 37.35 per MWh in 2012 prices • Contract comes with a level of merchant flexibility • Expect to take final investment decision within 18 months and potentially a
Slide 5: Onshore expansion into Continental Europe
Onshore expansion into Continental Europe Acquired German and French onshore platform Ostwind Portfolio overview Capacity (MW) • Entry into the sizeable and growing German and French 1,000 1,678 onshore markets • Ostwind is a developer, owner and operator of onshore wind and solar with fully integra
Slide 6: Ørsted construction programme and pipeline
Ørsted construction programme and pipeline Gross renewable capacity1 Construction highlights MW 2,852 29,330 Offshore 2,080 Hornsea 2 Onshore 1,498 Other (incl. biomass and PtX) 1,045 • All turbines fully commissioned 920 5,026 and commercially operational 3,214 • Formal commissioning expected 1,628
Slide 7: A significant number of offshore wind auctions and tenders will come in 2022/2023
A significant number of offshore wind auctions and tenders will come in 2022/2023 Awarded H2 2022 H1 2023 2023 2023 UK CFD AR4 German tender Rhode Island Portugal floating Spanish auction 7,000 MW ~900 MW 600 - 1,000 MW 6,000 - 8,000 MW TBA Outcome in 2022 H2 2022 H1 2023 2023/2024 2023 New Jersey o
Slide 8: EBITDA excluding new partnerships increased 27 %
EBITDA excluding new partnerships increased 27 % EBITDA of DKK 3.6 bn in Q2 2022 EBITDA excluding new partnerships increased DKK 0.8 bn DKKm • Offshore wind speeds above last year (8.4 m/s in Q2 2022 vs. 7.8 m/s in Q2 Q2 2021 incl. 2021) but below norm (8.7 m/s) contributed DKK 0.8 bn vs. Q2 2021 8,
Slide 9: Net profit, ROCE and Equity
Net profit, ROCE and Equity Net profit Borssele 1 & 2 ROCE Equity Equity excl. hedging reserves farm-down DKKm %, last 12 months DKKbn Hedging reserves 5,544 14.8 61.3 96.9 12.5 5,355 106.2 110.5 269 -9.3 189 -49.2 Q2 2021 Q2 2022 30 Jun 2021 30 Jun 2022 30 Jun 2021 30 Jun 2022 Net profit of DKK 0.3
Slide 10: Cash flow, net debt and credit metric
Cash flow, net debt and credit metric Cash flow and net debt FFO / Adj. net debt DKKm % 1,084 1,178 41,449 63 5,411 6,372 30,026 -267 -2,355 18 31 Mar CFO CAPEX Divest- Dividends Lease Exchange 30 Jun 30 Jun 2021 30 Jun 2022 2022 ments & hybrid obligations rate adj. 2022 Net interest-bearing debt of
Slide 11: Non-financial ratios
Non-financial ratios Taxonomy-eligible KPIs Green share of energy generation, %, Safety %, YTD YTD Total recordable injury rate, YTD 89 92 3.1 Revenue OPEX 2.8 68 80 30 Jun 2021 30 Jun 2022 30 Jun 2021 30 Jun 2022 EBITDA CAPEX Green share of energy at 92 % TRIR of 2.8 • More wind and solar assets in
Slide 12: Key expected full-year earnings drivers across portfolio
Key expected full-year earnings drivers across portfolio Approximate EBITDA impacts DKKbn 20 - 22 19 - 21 ~(2.5) ~0.5 ~2.0 ~0.5 Net positive impact from price and volatility effects across portfolio Cumulative impact DKK ~0.5 bn Original Offshore1 Onshore CHP plants Gas business Offshore existing Ot
Slide 13: 2022 guidance, strategic ambition, and financial guidance
2022 guidance, strategic ambition, and financial guidance 2022 guidance DKKbn Strategic ambition and financial guidance EBITDA (without new partnerships) 20 – 22 Ambition for installed renewable capacity by 2030 ~50 GW Gross investments 43 – 47 - Offshore ~30 GW - Onshore ~17.5 GW Business unit EBIT
Slide 14: Q&A
Q&A Earnings call DK: +45 78 72 32 50 UK: +44 333 300 9032 US: +1 646 722 4903 For questions, please press 01
Slide 15: Appendix
Appendix Orsted
Slide 16: Renewable capacity as of 30 June 2022
Renewable capacity as of 30 June 2022 Indicator, MW, gross H1 2022 H1 2021 Δ 2021 Installed renewable capacity The installed renewable capacity is calculated as the Installed renewable capacity 13,608 12,084 1,524 12,980 cumulative renewable gross capacity installed by Offshore, wind power 7,551 7,5
Slide 17: Forecasted renewable capacity build-out
Forecasted renewable capacity build-out Global renewable energy capacity Global offshore wind capacity North American renewable capacity by technology1 excl. mainland China by technology2 GW installed GW installed GW installed CAGR 2 % biomass Americas Biomass 32% Batteries Asia Pacific +26 GW/year
Slide 18: Offshore wind build-out plan
Offshore wind build-out plan Installed capacity MW 2,852 22,224 Under construction 1,498 Awarded 1,045 920 3,214 1,628 1,166 130 11,067 900 1,320 7,551 Installed Hornsea 2 Greater German South Decided US North- US Mid- Greater Baltica Baltica Hornsea 3 Decided capacity Changhua Portfolio1 Fork Wind
Slide 19: Offshore market development – UK & Ireland
Offshore market development – UK & Ireland • UK Government has increased the ambition of offshore wind to 50 GW by 2030, including 5 GW of floating offshore wind to reduce reliance on imports and improve energy security • Commitment to decarbonise electricity system by 2035 and binding target to rea
Slide 20: Offshore market development – Continental Europe
Offshore market development – Continental Europe • New Government has ambitions to increase offshore wind targets to 30 GW by 2030, 40 GW by 2035 and 70 GW by 2045 Germany • Tender volumes for 2023 have been increased to 8-9 GW and are expected to be allocated in auctions including both price and qu
Slide 21: Offshore market development – US
Offshore market development – US • Target of 5.6 GW offshore wind by 2027, of which 3.2 GW has already been awarded, through and including Dec. 2021 awards Massachusetts • Next auction expected in late 2023 • Target of 2 GW of offshore wind capacity by 2030, of which 1.2 GW remains available Connect
Slide 22: Offshore market development – APAC
Offshore market development – APAC • Taiwan has met its target of awarding 5.5 GW to be commissioned by 2025 • More than 6 GW of developing pipeline in preparation to participate future auctions Taiwan • Third round auction announced with 15 GW offshore wind target to be constructed from 2026-2035,
Slide 23: Upcoming offshore seabed competition 2022/2023
Upcoming offshore seabed competition 2022/2023 Ongoing H1 2023 H2 2023 2023 Poland Sørlige Nordsjø II Central Atlantic Utsira Nord ~ 12 GW site 1 TBC 1.5 GW 1.5 GW H2 2022 H2 2022 Q4 2022 / Q1 2023 H2 2023 2023 Scotland INTOG 1 California Gulf of Mexico Oregon Celtic Sea floating ~ 4.5 GW ~8 GW ~3 G
Slide 24: Power-to-X: Hydrogen & green fuels project pipeline of +3GW
Power-to-X: Hydrogen & green fuels project pipeline of +3GW Heavy Chemicals & Refineries Steel H2 Green Hydrogen MeOH eMethanol eKerosene transport fertilizers Project Maximum Country Application Product(s) Partners potential (MW) 1 H2RES 2 H2 Everfuel, DSV, GHS, +more Maersk, SAS, CPH Airport, 2 Gr
Slide 25: Overview of US offshore wind federal permitting process
Overview of US offshore wind federal permitting process Planning & Analysis Leasing Site Assessment Construction & Operations ~ 2 years 1-2 years Up to 5 years ~ 2 years BOEM1 conducts a BOEM conducts BOEM grants developer Submit COP for NOI Construction and Operations Plan (COP) process of area auc
Slide 26: Onshore build-out plan
Onshore build-out plan Installed capacity MW Under construction 201 4,905 250 29 16 430 3,979 Installed Old 300 Helena Energy Lisheen 3 Ballykeel Sunflower Decided capacity Center1 (FID’ed) and Q2 2022 installed capacity Region ERCOT, TX ERCOT, TX Ireland Northern Ireland SPP, KS Expected H1 2023 20
Slide 27: Sustainability and ESG at Ørsted
Sustainability and ESG at Ørsted Green leadership Contributing to the global goals ESG ratings of Ørsted • In Q2 2022, 93 % of our energy generation was green. We target 99 % green energy generation by 2025. Rating agency Score Benchmark Ørsted is a LEAD participant of the UN • By 2025, we aim to be
Slide 28: ESG Performance
ESG Performance Total heat and power generation Q2 2022 Greenhouse gas emission intensity Scope 3 greenhouse gas emissions, Energy source, % g CO2e/kWh million tonnes CO2e Offshore wind Sustainable biomass Scope 3 Other scope 3 emissions Onshore wind Coal Scope 1-2 Natural gas sales Solar PV Natural
Slide 29: Group – Financial highlights
Group – Financial highlights FINANCIAL HIGHLIGHTS Q2 2022 Q2 2021 D FY 2021 FY 2020 D EBITDA DKKm 3,615 8,196 (56 %) 24,296 18,124 34 % - New partnerships - 5,355 n.a. 8,507 - n.a. - EBITDA excl. new partnerships 3,615 2,841 27 % 15,789 18,124 (13 %) • Offshore 1,904 7,527 (75 %) 18,021 14,750 22 %
Slide 30: Offshore – Financial highlights
Offshore – Financial highlights FINANCIAL HIGHLIGHTS Q2 2022 Q2 2021 D FY 2021 FY 2020 D Wind speed (m/s), offshore wind farms EBITDA DKKm 1,904 7,527 (75 %) 18,021 14,750 22 % • Sites, O&Ms and PPAs 2,031 2,368 (14 %) 13,059 15,476 (16 %) • Construction agreements and 601 5,648 (89 %) 7,535 1,593 3
Slide 31: Onshore – Financial highlights
Onshore – Financial highlights FINANCIAL HIGHLIGHTS Q2 2022 Q2 2021 D FY 2021 FY 2020 D Wind speed (m/s), US onshore wind farms EBITDA DKKm 1,075 178 504 % 1,349 1,131 19 % • Sites 571 (32) n.a. 535 451 19 % • Production tax credits and tax attributes 679 312 118% 1,382 1,004 38 % • Other, incl. pro
Slide 32: Bioenergy & Other – Financial highlights
Bioenergy & Other – Financial highlights FINANCIAL HIGHLIGHTS Q2 2022 Q2 2021 D FY 2021 FY 2020 D EBITDA DKKm 647 503 29 % 4,747 2,136 122 % • CHP plants 619 351 76 % 3,202 1,111 188 % • Gas Markets & Infrastructure 66 232 (72 %) 1,829 411 345 % • Other, incl. project development (38) (80) 53 % (284
Slide 33: Currency and energy exposure
Currency and energy exposure Currency exposure Q3 2022 – Q2 2027 Energy exposure Q3 2022 – Q2 2027 DKKbn DKKbn Before hedging Before hedging After hedging After hedging 80.7 137.7 20.9 44.5 10.8 10.4 -2.4 -15.1 -5.4 -0.5 -0.2 -0.1 -3.0 -1.4 GBP1 USD2 NTD2 Power Gas Oil Spread (power) Risk after hedg
Slide 34: Hedging levels
Hedging levels Hedging level of total exposures for each BU, as of 31/12/2021 Offshore 100% 95% 67% 51% 26% Year 1 Year 2 Year 3 Year 4 Year 5 Onshore 79% 80% 77% 78% 78% Year 1 Year 2 Year 3 Year 4 Year 5 Bioenergy 31% 13% 4% Year 1 Year 2 Year 3 Exposure is calculated as the expected production (o
Slide 35: Capital employed
Capital employed Capital employed, DKKm Q2 2022 FY 2021 Q2 2021 FY 2020 Capital employed by segment Intangible assets, and property and equipment 175,704 162,939 138,459 122,249 %, Q2 2022 Offshore Assets classified as held for sale, net 741 860 654 793 Onshore Equity investments and non-current rec
Slide 36: FFO/Adjusted net debt calculation
FFO/Adjusted net debt calculation Funds from operations (FFO), DKKm 30 June 2022 31 Dec 2021 30 June 2021 EBITDA 24,282 24,296 21,423 Change in provisions and other adjustments (2,128) (422) (1,370) Change in derivatives (6,791) (2,050) 1,976 Reversal of gain (loss) on divestment of assets (4,127) (
Slide 37: Debt and hybrids overview
Debt and hybrids overview Total gross debt and hybrids Effective funding costs – Gross debt Maturity profile 30 June 2022 , DKKbn Cost of Modified Avg. time to DKKbn debt (%) duration (%) maturity (years) Bond loans 2.7 7.7 9.3 18.2 76.6 Bank loans 2.1 3.5 4.1 21.1 Total 2.6 7.0 8.3 24% 4.1 3.8% 54.
Slide 38: Hybrid capital in short
Hybrid capital in short Hybrid capital can broadly be defined as funding Due to hybrid’s equity-like features, rating Accounting treatment instruments that combine features of debt and agencies assign equity content to the hybrids when • Hybrid bonds are classified as equity equity in a cost-efficie
Slide 39: Ørsted’s outstanding bonds
Ørsted’s outstanding bonds Principal Allocated to green Avoided emissions (t CO2/year) Bond Type Issue date Maturity Face Value Coupon Coupon payments Green bond amount projects (DKKm) attributable to the bonds Senior Unsecured Sep. 2012 19 Sep. 2022 EUR 750m EUR 517m 2.625% Every 19 Sep. No n/a n/a
Slide 40: Financing strategy
Financing strategy At Ørsted, we have a centralised financing strategy The financing strategy optimizes the effect of a fully utilising our strong balance sheet and diverse integrated cash pool where cash at practically all of portfolio. the company’s more than 200 subsidiaries is made The strategy
Slide 41: Currency risk management
Currency risk management General principles • Highly certain cash flows are hedged • Cost-of-hedging is minimized by netting of exposures in the portfolio of projects, as well as use of construction contracts and debt in local currencies. Managing outright long risk • Operations: 5-year minimum hedg
Slide 42: Inflation and interest rate risks
Inflation and interest rate risks 2022-2031 revenue from assets in operation, under construction, and awarded before debt, % 100 ~55 ~35 ~20 ~10 ~35 Total revenue Inflation-indexed Merchant Fixed nominal cash Fixed nominal cash Duration-matched Derivatives Net inflation risk flows from assets flows
Slide 43: Glossary
Glossary Balancing costs Ineffective hedges The cost of settling intraday differences between expected (day- Expected overhedging of future periods, which we, according to IFRS, ahead) and actual (real-time) production have to recognise already in the quarter where we report Intermittency costs Pric
Slide 44: Investor Relations contacts
Rasmus Hærvig Henriette Stenderup Head of Investor Relations Investor Relations Coordinator rakol@orsted.com hnste@orsted.com Sabine Lohse Valdemar Høgh Andersen Senior Investor Relations Officer Investor Relations Officer sablo@orsted.com vehan@orsted.com