EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — EDP Renováveis — Investor Day (April 2021)
33 slides from EDP Renewables SA's investor day presentation, April 2021
Slide 1: Strategic Update 2021-2025
edp renewables NNN NNN NNN Strategic Update 2021 - 2025
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP Renováveis, S.A. (the "Company") solely for use Forward-looking statements include statements regarding: objectives, goals, strategies, at the presentation to be made on this date and its purpose is merely of informative nature outlook and growth pro
Slide 3: Agenda
Agenda Our world and our sector Our company and track-record Our strategy and growth Our 2025 targets Strategic Update 2021 – 2025 | 3
Slide 4: New energy sector at the center of the economy and transformation towards Net Zero
New energy sector at the center of the economy and transformation towards Net Zero We need a new decarbonized and … in which a new energy electrified world… sector is required ~95% -100% Clean renewables coal phase-out share in power in global power 1.5 ºC generation in 2050 by 2050 Affordable 3x Ze
Slide 5: The World is joining forces in this effort
The World is joining forces in this effort Paris Decarbonization and New private and social Agreement renewables targets set commitment demanding and + COP26 supporting clean energy accelerating New regulation underway efforts 189 €1.1tr $1.9tr $15tr private 90% countries Green Deal Biden plan compa
Slide 6: The energy of the future will be electric, clean, affordable and reliable
The energy of the future will be electric, clean, affordable and reliable, requiring an unparalleled renewables growth Unprecedented growth Cost competitive North America + Europe + LatAm LCOE decrease in 2030 vs. 2019 Renewables additions p.a., GW 250-300 Solar PV -35% Below wholesale electricity p
Slide 7: A renewables major with extensive track-record
A renewables major with extensive track-record Installed Capacity GW Top 4 14 GW Saving wind & solar built/added 19 mt/y2 12.2 player1 to date of CO2 2x 9.6 Multi-tech pipeline >6 GW backlog 45 GW secured 6.7 >250% TSR 2010-2020 2010 2015 2020 1. Excludes companies incorporated / operating in China;
Slide 8: Attractive portfolio with 12.2 GW installed and presence in 15 countries
Attractive portfolio with 12.2 GW installed and presence in 15 countries by MW by # of parks Canada 24% 29% 68 MW 12.2 5% 289 55% 56% GW parks Poland 12% UK 17% 6,299 4% MW 476 USA MW Belgium Hungary North America Spain & Portugal Rest of Europe Brazil 400 MW 10 MW Mexico France 126 521 MW MW by tec
Slide 9: EDPR has already secured a ramp-up growth up to 3 GW/year
EDPR has already secured a ramp-up growth up to 3 GW/year at attractive profitability… Capacity already secured until 2022… …above BP19-22 and locking in strong returns GW 3.0 ~7.0 7.7 0.3 Offshore 2.3 0.04 target 2019-22 secured 2019-22 1.1 Solar 1.6 0.5 0.01 0.2 Achieved1 0.9 0.1 1.4 1.8 1.6 Onsho
Slide 10: Proven asset rotation model to create superior value
…supported by a proven Asset rotation model to create superior value… Target Execution Value ~7 GW 2019-22 target proceeds on-track… 5 transactions closed in 2019 and 2020 MW EV/ Gain/ 2019-20 Asset rotation ~50% >55% net MW €m MW €k executed >€4.0bn Europe 497 1.6 460 target proceeds Brazil 137 1.9
Slide 11: Increased bottom-line growth and record levels in 2020
… leading to increased bottom-line growth and record levels in 2020 Execution of a superior strategy and a solid …with superior performance exceeding targets business model… EBITDA Net Profit €bn €bn +8% +27% CAGR 18-20 CAGR 18-20 1.7 1.6 0.55 1.3 0.5 1.1 0.31 0.17 2015 2018 2020 Target 2015 2018 20
Slide 12: Leaner and more efficient Corporate Governance structure
Leaner and more efficient Corporate Governance structure supported in the daily management of the business by… Key Highlights Independent Chairman1 Board of Directors Board reduced from 15 to 12 Executive Directors Non-Executive Directors Executive directors reduced from 4 to 2 (CEO and CFO) General
Slide 13: A highly experienced and motivated management
…a highly experienced and motivated management … Miguel Stilwell d’Andrade CEO 3 nationalities Duarte Bello COO Europe & Rui 45 avg. age Teixeira Brazil CFO 17 avg. years of experience in the sector Remuneration linked to strategy execution including Spyridon Miguel Angel ESG Martinis COO Offshore &
Slide 14: Top-class team and a lean organization
…supported by a top-class team and a lean organization focused on business development & operations People Organization 1,700+ employees Strong operational expertise focused on O&M and 40% Operations Energy Management, namely in modeling, managing ~700 employees and forecasting critical variables Di
Slide 15: Our strategy to deliver superior growth through 2025
Our strategy to deliver superior growth through 2025 Growth Value Excellence Accelerated Ongoing High quality and selective asset rotation teams and growth program efficient operations +20 GW €8bn -2% additions target CAGR 2021-2025 2021-2025 Core Opex/MW Promoting clean energy while operating in a
Slide 16: We will double growth in renewables, adding 4 GW/year
Growth We will double growth in renewables, adding 4 GW/year with clear visibility Step-change growth in renewables… … with a robust pipeline to address target additions Gross additions, GW1/year Total gross additions, GW1 20 45 ~3x GW Pipeline announced 4.6 as of 2019 (16 GW) 3.5 36 ~3x 20 Target a
Slide 17: Growth in core low-risk geographies across the world
Growth We focus our growth in core low-risk geographies across the world North America Europe +8.8 GW +6.7 GW Double-down focus with Biden Plan Reinforce position Liquid market with visibility 10.5 Developed market 6.7 20 GW¹ GW over PTC/ITC with public support 8.8 ~ 35% Diversified geographic Gross
Slide 18: Grow presence across technologies with a differentiated value proposition
Growth We will grow our presence across technologies, with a differentiated value proposition within the renewable sector Future growth Long-term growth Wind offshore Solar DG opportunity with medium Strong visibility term value crystallization Extensive pipeline with ~ 7% Risk diversified ~ 5% addi
Slide 19: Strengthening our leadership position in wind onshore
Growth We are focused on strengthening our leadership position in wind onshore Target 2021-25 (GW) Current presence XX % in additions XX Total installed capacity We have a strong onshore wind presence across the … consolidating leadership and globe that will be reinforced… exploring growing opportun
Slide 20: Committed to build a sound market presence in Solar
Growth We are committed to build a sound market presence in Solar Target 2021-25 (GW) Current presence XX % in additions XX Total installed capacity We have robust secured additions and pipeline in solar… … adopting a differentiated approach to clients Reinforce approach to large scale utility North
Slide 21: Leading global player in offshore wind through Ocean Winds JV
Growth We aim to be a leading global player in offshore wind through the 50:50 JV Ocean Winds (OW) Step-change in capacity with a global footprint… … with results already in place Installed Under construction Under development ✓ PPA/Tariff secured Pursuing greenfield development, while Project visib
Slide 22: Developing new technologies and business models
Growth We are developing new technologies and business models to ensure long term renewables competitive edge and growth Improve profitability and assets utilization Differentiated business case Hybridization Opportunities combining Solar + Wind Early-mover advantage and technology partner Float
Slide 23: Accelerate growth, maintaining distinctive asset rotation model
Value We will accelerate growth, maintaining our distinctive asset rotation model Asset rotation model fueling growth… … aligned with our track record Asset rotation model added capacity, GW1/year Extensive 19 transactions since 2012 track record 1.5 €12bn EV3 track record in past 1.4 transactions 0
Slide 24: Managing the full value chain at the highest excellence standards
Excellence Managing the full value chain to deliver competitive and quality projects at the highest excellence standards Development Construction Operations Competitive Projects On time & on budget Excellence in asset management Local development knowledge and Global scale providing competitive
Slide 25: Key core competences and unique know-how to maximize efficiency
Excellence We have key core competences and a unique know-how set to maximize efficiency Our unique O&M strategy … … are set to maximize efficiency levels Core Opex / Avg. MW 10 year strategy in optimizing O&M activities by increasing (€k) internalization post-warranty (today 50% of the fleet) Has r
Slide 26: 2025 growth supported by top-class team reinforced by best talent
Excellence 2025 growth supported by current top-class team reinforced by best talent in the market attracted by a superior proposition 2025 2020 2025 2015 >3,000 2010 1,735 1,018 822 Headcount Road to 2025 Committed team developed & reinforced Attract Experience Develop Great company culture Tailore
Slide 27: Our 2025 targets
Our 2025 targets 20 GW €19bn additions 2021-25 investment 2021-25 4 GW/yr Strategic Update 2021 – 2025 | 27
Slide 28: Growth 2021-25 plan totalling 20 GW leading to €19bn investment
Growth 2021-25 plan totalling 20 GW leading to a €19bn cumulative investment … Investments break down Net investment €bn Solar Onshore 19 8 €19bn 11 41% Gross Investment 54% 2021-25 2% 3% Offshore Gross Sell-down Net Other Strategic Update 2021 – 2025 | 28
Slide 29: Supported by clear sources of cash
… supported by clear sources of cash… Uses of cash Sources of cash €bn €bn 20 EDPR is considering the issuance of equity of c. €1.5bn to be placed with Dividends & institutional investors at an appropriate time Distributions1 Any equity issuance would be expected to meaningfully increase the free Op
Slide 30: Deliver superior value through a solid business model
… to deliver superior value through a solid business model… 2020 2023 2025 Installed Capacity GW Step-up growth and scale 12 18 25 >2x EBITDA €bn Increased results with geographic diversification and a 1.65 2.0 2.3 +7% CAGR 20-25 stable Asset Rotation program Net income €bn Earnings acceleration thr
Slide 31: Operating with the highest ESG standards
… while operating with the highest ESG standards 2020 2025 Circular economy Recovery rate for generated % wastes in the whole value chain 761 85 Biodiversity Facilities with high biodiversity % risk with action plans defined n/a 100 People Improve diversity and inclusion % by increasing female emplo
Slide 32: A unique renewable major
An unique renewable major Stepping-up New energy sector to the challenge at the center of the and aiming an economy towards ambitious Net Zero 4 GW/year growth plan Pure 100% renewable player with extensive track-record, know- how and core capabilities
Slide 33: renewables
renewables [SS] Strategic Update 2021-2025