Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — 9M21 Earnings Presentation
26 slides from Edp's earnings presentation, Nov 5, 2021
Slide 1: 9M21 Results Presentation
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: 9M21 Highlights: Delivery of Value Accretive Growth in the Energy Transition
9M21 Highlights: Delivery of Value Accretive Growth in the Energy Transition, on track to deliver 2021 guidance 9M21 Key Figures(1) Highlights Gross €2.7 Bn 3.9 GW(2) renewables added in 9M21 + Capacity U/C) Investments (+15% YoY) Growth in Electricity networks Spain (Viesgo) & Brazil Strong Hydro v
Slide 4: Policy environment highly supportive of the energy transition
We continue to witness a policy environment highly supportive of the energy transition Reiterated global EC toolbox to tackle energy Important legislative commitments in the fight prices: measures under discussion against climate change Need to accelerate energy transition investments $1.20 Tn $1.75
Slide 5: With Sunseap, we set up a 4th regional hub in APAC
With Sunseap, we set up a 4th regional hub, a platform for long term growth in APAC, becoming a true global clean energy player Global presence through EDPR’s installed … with a focus on accelerated and diversified capacity(1)… growth Europe APAC By Geography… Asia 6.3 GW 0.5 9% GW 24% North America
Slide 6: EDP has secured 8.1 GW whilst maintaining a sound investment approach
EDP has secured 8.1 GW whilst maintaining a sound investment approach Continued accelerated growth in … maintaining a selective and disciplined renewables… investment approach +2.5 GW of Wind & Solar Gross (1) Strong execution capacity added over the last 12 months Target Actual on capacity deployme
Slide 7: Contracting major equipment upfront at fixed price mitigating capex inflation
We have a policy of contracting major equipment upfront at fixed price mitigating concerns on capex cost inflation Secured Capacity Breakdown Recent Auctions already incorporating higher bid % prices (e.g. Spain Auction) Fully contracted (1) or Higher Revising Bid prices in PPAs under negotiation an
Slide 8: Asset rotation execution strong with €2.3bn of proceeds secured
Asset rotation execution has been strong with €2.3bn of proceeds secured at attractive multiples and €0.15bn(1) gain already booked Strong AR execution at attractive multiples, showcasing the value of EDPR projects EV/MW 1.7 1.25 1.6 €2.3bn of proceeds, €m ~30% of €8bn AR target for 2021-25 €2.3bn A
Slide 9: Electricity distribution Portugal: proposal on 2022-2025 regulatory framework
Electricity distribution Portugal: proposal on 2022-2025 regulatory framework provides remuneration visibility Regulated Revenues 2022E Regulatory Framework 2022-2025 €m -€10m YoY Return on RAB (1) 1,024 1,014 4.3% Rate of Return indexed to bond yields -45 bps YoY (2) Portuguese government 10 Year b
Slide 10: Regulatory framework in Portugal provides stable prices for residentials
Despite higher wholesale prices, regulatory framework in Portugal provides stable prices for residentials and continuous system debt decline End-users Regulated Electricity Tariff Portugal Electricity System Debt €/MWh; Low-voltage clients (residentials & SMEs) € Bn +0.2% 3.5 -50% Wholesale price 39
Slide 11: Electricity spot prices at historical highs, backwardation supports corporate demand
Electricity spot prices at historical highs, backwardation of forward curve support demand by corporates for longer contracted maturities Wholesale Electricity Prices Iberia EDP Baseload Selling Price Iberia 2022-2025 €/MWh Average €/MWh Average selling price 60 for ~50% of baseload 200 generation (
Slide 12: Significant developments in Brazil's portfolio reshuffling
Significant developments in Brazil’s portfolio reshuffling provide value crystallization and improve growth prospects Transmission Asset Rotation Strategy Celg-T region (Goiás) with strong electricity demand growth, requiring significant transmission investments Acquisition Asset Rotation Celg-T Act
Slide 13: ESG excellence at the core of our strategy
ESG excellence at the core of our strategy In 9M21… EDP & EDPR both maintain top 10 positions in the S&P Global Clean Energy Index Renewables represented 76% of total generation (vs 75% 9M20) Revenues aligned with EU taxonomy: 66% in 9M21 (vs. 58% in 2020) ESG Day event: providing transparency on ou
Slide 14: 9M21 Results
9M21 Results
Slide 15: Recurring EBITDA -1% YoY with CS&EM weak performance mitigated by Networks
Recurring EBITDA -1% YoY (+3% ex-forex) with CS&EM weak performance being mitigated by strong Networks’ results Recurring EBITDA(1,2) €m YoY growth, % -1% YoY (ex-forex+3% ) ∆ YoY 2,528 2,511 EDPR Installed Capacity +13% YoY (3) Wind resources -5% vs. LT avg Asset rotation gains +€151m (-€49m YoY) H
Slide 16: Wind & Solar EBITDA -15% YoY
Wind & Solar EBITDA -15% YoY impacted by low wind resources, decline of avg. selling price and YoY decrease of asset rotation gains Wind & Solar EBITDA €m YoY growth, % -15% YoY 9M20 9M21 YoY Installed Capacity(1), GW 11.5 13.0 +13% 1,074 Prod. deviation vs exp LT Gross 917 Capacity Factor, % -5% -5
Slide 17: Hydro recurring EBITDA +25% YoY
Hydro recurring EBITDA(1) +25% YoY, prompted by strong hydro resources in Iberia and tax reversal in Spain Hydro Recurring EBITDA(1) €m YoY growth, % +25% YoY 9M20 9M21 YoY Hydro Production(2,3), TWh 6.7 7.6 +12% 515 Hydro resources vs. LT Avg(4) , % -3% 13% 16 p.p. 412 Avg selling price(3,5), €/MWh
Slide 18: Electricity Networks Recurring EBITDA +43% YoY
Electricity Networks Recurring EBITDA +43% YoY with the integration of Viesgo in Spain, inflation updates and expansion capex in Brazil Elec. Networks Recurring EBITDA(1) €m YoY growth, % +43% YoY 9M20 9M21 YoY Return on RAB Portugal (2), % 4.85% 4.76% -9 bps 948 Return on RAB Spain, % 6,00% 5,58% -
Slide 19: Client Solutions & EM Recurring EBITDA penalized by energy prices
Client Solutions & EM Recurring EBITDA(1) penalized by strong increase of energy prices and negative MTM of hedging contracts Recurring CS&EM EBITDA(1) €m YoY growth, % -66% YoY Tough YoY comparison vs. very strong 9M20 in EM 9M21 EM penalized by negative mark-to- 390 market of hedging, high energy
Slide 20: High energy prices negative impact in 2021, mitigated through integrated portfolio
High energy prices with negative impact in 2021, mitigated through risk optimization within an integrated portfolio in Iberia Accelerated & sustainable Risk mitigation through integrated portfolio strategy(1) growth € Bn 1 0.02 Higher energy costs not passed-through to our clients (short position an
Slide 21: Net financial costs decline in 9M21
Net financial costs decline in 9M21 due to lower interests and positive one-off impacts Avg. Cost of Net Financial Costs(1) % Debt(2) €m ~+10bp Avg. cost of debt in BRL up to 8.6% vs. 3.2% 3.3% 6.9%; (BRL with a 12% weight on total debt) 505 -6% 74 431 Proactive liability management to lower 24 407
Slide 22: Net Debt mostly flat YTD
Net Debt mostly flat YTD, capex growth and temporary higher working capital offset by EDPR capital increase and hybrid bond issuances Change in Net Debt € Bn +€2.3Bn Gross Expansion Investments -€0.6Bn proceeds AR 1.7 +€0.4Bn WC on fixed asset suppliers 2.4 +€0.2Bn Forex 12.2 0.7 12.1 0.3 0.2 Penali
Slide 23: Net Profit -2% YoY; net non-recurring items at zero
Net Profit -2% YoY benefitting from improved financial results and lower minority interests; net non-recurring items at zero in 9M21 Recurring Net Profit (1) Δ YoY Reported Net Profit €m €m EBITDA 2 511 -17 +21% YoY D&A and 510 Provisions 1 104 -55 422 EBIT 1 408 -72 Net Financial Costs 396 +52 Inco
Slide 24: Closing Remarks
Closing Remarks
Slide 25: Key takeaways: On track to deliver 2021-2025 targets
Key takeaways: On track to deliver 2021-2025 targets Acquisition of Sunseap, with a strong track record and pipeline, provides a new growth platform in the fast-growing APAC region and solidifies EDP’s status as a global clean energy player Strong visibility on renewables growth, with 8.1 GW secured
Slide 26: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
EDP - Energias de Portugal — 9M21 Earnings Presentation on 6ix