Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — FY2023 Earnings Presentation
27 slides from Edp's earnings presentation, Mar 1, 2024
Slide 1: Results Presentation 2023
Results Présentation 2023 Lisbon, March 1st ANN a pela ra
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: 2023 with key milestones for our strategy
Strengthening of balance sheet with €2 Bn equity raises of EDP and EDPR 2023 with key Successful buyouts of minorities (EDP Brasil, wind Europe): earnings enhancing and milestones for reinforced weight of regulated networks and LT contracted renewables our strategy announced at €2.0 Bn asset rotatio
Slide 4: 2023 results delivering guidance, backed by a rebound in integrated performance in Iberia
2023 results delivering guidance, backed by a rebound in integrated performance in Iberia, strong AR gains and resilient networks Main targets delivered Highlights Unitary integrated margin in 2023 Latest Guidance 2023 Iberia +2.6x YoY; Strong ΔYoY hydro recovery following the Recurring severe droug
Slide 5: 2023 presented the normalization of hydro resources vs. 2022; Good prospects for 1Q24
2023 presented the normalization of hydro resources vs. 2022; Good prospects for 1Q24 Strong YoY volumes recovery following average Strong start of 2024 with above average hydro hydro resources in 2023 vs. 2022 extreme drought generation and reservoirs Hydro generation in Iberia net of pumping (TWh)
Slide 6: Flexible hydro generation fleet sustaining hydro realized price premium vs. baseload
Flexible hydro generation fleet with 45% of pump. & storage and 75% with reservoir support sustained hydro realized price premium vs. baseload Higher renewables penetration enhancing EDP well positioned to benefit from higher volatility intraday spreads in intraday prices Avg. hourly price and renew
Slide 7: Integrated generation and supply portfolio in Iberia providing resilience
Integrated generation and supply portfolio in Iberia providing resilience under a context of decreasing energy prices EDP has a balanced position between generation Iberian integrated business resilient to power price and clients in Iberia volatility, supporting good prospects for 2024 EDP Iberia ge
Slide 8: Regulated networks in EDP's portfolio: 30% weight on EBITDA and Net Profit
Regulated networks in EDP’s portfolio: 30% weight on EBITDA and Net Profit, RAB net of minorities +29% following EDP Brasil minorities buyout Networks portfolio with a significant weight in Positive developments on networks outlook for 2024 EBITDA, reflecting the growth in our asset base EDP São Pau
Slide 9: Acquisitions of minority interests at EDP Brasil and wind portfolio in Europe
Acquisitions of minority interests at EDP Brasil and wind portfolio in Europe to support 2024-2026 earnings outlook Minority buyouts executed in 2023 increasing Decrease of minorities at P&L enhancing EDP’s net exposure to earnings enhancing businesses income from 2023 onwards Net Income annual cont
Slide 10: Strong asset rotation execution in 2023 with €460m gains
Strong asset rotation execution in 2023 with €460m gains and positive outlook for 2024, with 2 transactions closed in 1Q24 and other pending closing 3 AR deals closed in 2023 – Key metrics Outlook for 2024 Closed GW 1.0 0.7 ~1.2 Sale of 80% stake in 340 MWac portfolio, $0.4 Bn EV Proceeds1 (€ Bn) 1.
Slide 11: EDPR 2024 additions clearly identified and ~100% secured
EDPR 2024 additions clearly identified and ~100%, secured supporting renewables generation ramp up over 2024 4 GW on track for 2024, with 85% already under Attractive long-term revenues secured in 2022- construction and 100% secured 2023 for 10 GW EDPR Capacity Additions, GW EDPR secured capacity 20
Slide 12: Growing our leading global Solar DG business with record installations
Growing our leading global Solar DG business with record installations, while continuing at the forefront of new renewable solutions Unprecedent growth in solar DG business Growing and creating value based on complementary technological solutions Installed capacity, GWac Wind /Solar Hybrid Parks 1.1
Slide 13: Stepping up green leadership position: Key ESG metrics improving in 2023
Stepping up green leadership position: Key ESG metrics improving in 2023 and on track to be coal free by 2025 Emissions & EU Taxonomy metrics Progressing in our commitments, while being recognized by ESG performance 96.4% (+0.4 p.p. YoY) CAPEX aligned with EU Taxonomy #1 integrated electric utility
Slide 14: 2023 Financial Results
2023 Financial Results
Slide 15: Recurring EBITDA +11% YoY reflecting growth of integrated margin
Recurring EBITDA +11% YoY reflecting the growth of integrated margin and including~€0.5Bn of AR Gains Recurring EBITDA1 ,€m YoY growth, % ∆ YoY +11% • Normalization of hydro resources in Portugal vs. very weak 2022 5,023 • Lower electricity and gas sourcing costs 4,522 • Unitary integrated margin +2
Slide 16: Generation & supply integrated EBITDA rebound
Generation & supply integrated EBITDA rebound, on the back of hydro and sourcing conditions recovery vs. extremely adverse context in 2022 Hydro, Clients & EM Recurring EBITDA €m YoY growth, % Iberia 2022 2023 YoY 2x ∆ YoY 1,699 Hydro coefficient in Portugal, avg.=1 0.63 0.99 +57% Hydro Generation,
Slide 17: Wind & Solar EBITDA decreasing YoY with ~€0.5Bn AR gains
Wind & Solar EBITDA decreasing YoY with ~€0.5Bn AR gains mitigating weaker wind resources and selling prices and lower contribution from OW Wind & Solar Recurring EBITDA €m YoY growth, % ∆ YoY 2022 2023 YoY -14% Installed Capacity1, GW 14.7 16.6 +12% 2,157 1,845 Prod. deviation vs. exp. LT Gross -2%
Slide 18: Electricity Networks representing 30% of total EBITDA
Electricity Networks representing 30% of total EBITDA, roughly stable YoY Electricity Networks Recurring EBITDA €m YoY growth, % Iberia 2022 2023 YoY 0% ∆ YoY Return on RAB Portugal , % 5.05% 5.57% +53 bps 1,504 1,501 Return on RAB Spain, % 5.58% 5.58% 0 bps Portugal 533 532 -2m OPEX/ Supply Point I
Slide 19: Successful management of regulatory receivables in Portugal
Successful management of regulatory receivables in Portugal through tariff deficit sale and a sizeable volume of tax equity transitions in 4Q23 ~€2.0 Bn tariff deficit securitized in 2023, netting TEI proceeds reaching €0.5 Bn in 2023 and regulatory receivables expected to increase in 2024 Regulator
Slide 20: Improvement of credit ratios: Net Debt/EBITDA at 3.3x
Improvement of credit ratios: Net Debt/EBITDA at 3.3x and FFO/Net Debt at 21% reflecting the capital structure reinforcement with €2 Bn capital increases Change in Net Debt € Bn 0.8 2.0 15.3 Organic cash-flow = €1.1 Bn 0.0 4.0 1.0 14.3 13.2 RR 1.9 0.4 0.8 Regulatory working capital including ~€2.0 B
Slide 21: High financial liquidity at >€10 Bn covers refinancing needs until 2027
High financial liquidity at >€10 Bn, supported by >€7bn of available credit lines, covers refinancing needs until 2027 Financial liquidity EDP consolidated debt maturity profile1 as of Dec-23, €Bn as of Dec-23, €Bn Cash & Equivalents 3.4 EDP Brasil EDP SA & EDP Finance BV and Other (% of total debt)
Slide 22: Net financial costs flat YoY
Net financial costs flat YoY: cost of debt increase mitigated by higher capitalized interest due to higher volumes of construction activities Net Financial Costs Avg. nominal debt by currency €m EDP excl Brazil Brazil 0% -2% EUR 48 % 52 % 910 39 55 910 871 855 -16 USD 36 % 28 % BRL Of which 4% 14 %
Slide 23: Recurring net Profit of €1.3 Bn on the back of strong integrated business
Recurring net Profit of €1.3 Bn, on the back of a strong integrated business rebound, and supported by lower minorities in Brazil since 3Q23 Recurring Net Profit1 Recurring Net Profit €m Δ YoY €m +48% 1,290 EBITDA 5,023 +501 871 D&A and Provisions 1,745 -87 EBIT 3,278 +414 Net Financial Costs 903 7
Slide 24: 2023 Closing Remarks
2023 Closing Remarks
Slide 25: On track to deliver 2024 guidance
On track to deliver 2024 guidance 2024 Guidance Strong Regulated EDP Brasil integrated Electricity minorities’ business ~€1.3 Bn performance Networks buyout resilience Net Profit recurring Portfolio optimization, Networks contributing 100% earnings high reservoir levels, 30% to EBITDA, acting as con
Slide 26: Q&A
Q&A @edp
Slide 27: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
EDP - Energias de Portugal — FY2023 Earnings Presentation on 6ix