Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — 9M22 Earnings Presentation
26 slides from Edp's earnings presentation, Oct 28, 2022
Slide 1: 9M22 Results Presentation
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") solely Forward-looking statements include statements regarding: objectives, goals, strategies, for use at the presentation to be made on this date and its purpose is merely of informative outlook and growt
Slide 3: Agenda
Agenda 1 Update on Strategy Execution 2 9M22 Results 3 Closing Remarks 4 Q&A
Slide 4: Strong EBITDA performance offset at Net Profit level by higher financial costs
Strong EBITDA performance on Renewables, Networks and Thermal offset at Net Profit level by higher financial costs due to macro environment 9M22 Key Figures Highlights Good performance on Wind & Solar, Electricity Reported €3,046m Networks and Thermal generation EBITDA (+21% YoY) -3.3 TWh Hydro shor
Slide 5: 2023 electricity regulated tariffs proposal in Portugal
2023 electricity regulated tariffs proposal in Portugal (Oct.17 th): Despite high electricity wholesale prices, retail tariffs stable, system debt down by €2bn Reg. Electricity Tariff components Wholesale Price vs Renewables FiT Electricity System Debt Residentials end-user tariffs2; €/MWh €Bn 3 1 E
Slide 6: Electricity Networks in Portugal 2023 regulated revenues +2%
Electricity Networks in Portugal 2023 regulated revenues +2% supported by indexation to Portugal 10-year bond yields and inflation Electricity Distribution regulated revenues ERSE’s proposal 2022 2023 YoY Annual RoRAB indexed to 10-year Portuguese Regulated bond yields1 Revenues €1,029m €1,050m +2.0
Slide 7: Positive macro environment in Brazil in a counter cycle with Europe and US
Positive macro environment in Brazil in a counter cycle with Europe and United States Favourable macro prospects… …with strong business execution by EDP in Brazil Electricity PLD at R$60MWh (~€10MWh) Investment focused on Electricity €0.9 Bn Wholesale Price Low pressure on tariffs Networks and Wind
Slide 8: Governments are joining forces to foster renewables growth
Governments are joining forces to foster renewables growth, while context of high energy prices pushes for additional regulation in EU countries IRA represents unprecedented US Scenarios of price stabilization and commitment on climate, aiming to regulation from European governments reduce carbon em
Slide 9: Out of the 20 GW of 2021-25 capacity additions, 40% already installed
Out of the 20 GW of 2021-25 capacity additions, EDP has 40% already installed or under construction and 55% secured EDP continues to accelerate growth across all Short-term challenges have implied some platforms, with +3.7 GW installed & U/C YTD transfers from 2022 to 2023… 10.8 GW committed capacit
Slide 10: EDP Asset Rotation program keeps delivering value
EDP Asset Rotation program keeps delivering value, with €3.4bn of AR proceeds secured, >40% of the €8bn target for 2021-25 AR net GW/year AR Gains/year AR Gains/MW GW €bn €m AR Proceeds 1.4 +1.5x +2x 0.5 0.5 1.0 ~0.3 ~0.2 In line with BP Guidance €3.4bn BP Executed BP Executed BP Executed Guidance 2
Slide 11: Higher electricity prices for 2023 and long-term hedging optimization
Higher electricity prices for 2023 and long-term hedging strategy optimization present an upside to a challenging 2022 Hydro shortfall resulted in short position in 2022 2023-25 upside on higher avg. selling price Hydro shortfall in Iberia: 3.3 TWh below Structural reduction of maximum hedged volume
Slide 12: EDP's alignment with the energy transition and ESG criteria
EDP’s alignment with the energy transition and ESG criteria enables the business to finance growth with green and cost competitive funding Stepping-up green leadership position… …while being recognized by ESG performance Sustainability linked loan in August 1st 5-year Revolving credit facility of €3
Slide 13: Financial Performance
FINANCIAL PERFORMANCE
Slide 14: Recurring EBITDA +21% YoY
Recurring EBITDA +21% YoY prompt by good performance of Wind & Solar and Electricity Networks despite the penalizing Iberian hydro shortfall Recurring EBITDA(1,2) €m YoY growth, % ∆ YoY +21% YoY 3,046 2,511 +15% EDPR Installed Capacity +10% YoY excl. FX 1,482 +565m Wind resources in line with LT avg
Slide 15: Wind & Solar EBITDA +62% YoY
Wind & Solar EBITDA +62% YoY on the back of outstanding top line performance from base portfolio Wind & Solar Recurring EBITDA(1) €m YoY growth, % ∆ YoY 9M21 9M22 YoY 62% YoY 1,482 Installed Capacity(2), GW 13.0 14.3 +10% Prod. deviation vs. exp. LT Gross -5% 0% +5 p.p. Capacity Factor, % 917 975 +5
Slide 16: Electricity Networks Recurring EBITDA +20% YoY
Electricity Networks Recurring EBITDA +20% YoY reflecting tariff updates in Brazil Electricity Networks Recurring EBITDA €m YoY growth, % Iberia 9M21 9M22 YoY ∆ YoY Return on RAB Portugal (2), % 4.76% 5.05% +29 bps +20% YoY 1,136 Return on RAB Spain, % 5.58% 5.58% 0 bps 948 391 -8m OPEX/ Supply Poin
Slide 17: Hydro, Client Solutions & EM EBITDA penalized by scarce hydro resources
Hydro, Client Solutions & EM EBITDA penalized by scarce hydro resources in Iberia in a period of high energy prices Hydro + CS&EM Recurring EBITDA(1) €m YoY growth, % Iberia 9M21 9M22 YoY -32% YoY ∆ YoY 650 Hydro resources vs. Avg(2) , % +13% -66% -77 p.p. Hydro Generation, TWh 7.7 3.6 -4.1 443 Iber
Slide 18: Generation & Supply business in Iberia in 3Q22
Generation & Supply business in Iberia in 3Q22 penalized by low hydro volumes and higher fuel costs, partially offset by high thermal volumes EBITDA Iberia(1) Hydro, Client Sol. & Energy Mgmt. 3Q22 marked by: € millions, recurring 69 194 Hydro volumes -0.5TWh vs. expected 125 Thermal volumes 5.3TWh
Slide 19: Net financial costs increase in 9M22
Net financial costs increase in 9M22 impacted by higher interest rates in Brazil Net Financial Costs Cost of Debt(1) €m >2X Brazil EDP excl Brazil €m +55% 2.4% 2.6% 580 188 533 47 Avg. Cost 150 of Debt 4.3% 356 345 242 Excl. Brazil 11 39 92 3.3% 253 291 9M21 Non- 9M21 Interest 9M22 Non- 9M22 EUR USD
Slide 20: Significant volumes of LT financing closed in 2021-2022
Significant volumes of LT financing closed in 2021-2022 under attractive market conditions in accordance with our conservative funding policy In 21/22 EDP has issued ~€4Bn through green 9M22 Financial debt breakdown senior bonds & hybrids 2021: Interest Rate Type Currency €2Bn Hybrid issued @ avg. 1
Slide 21: Strong liquidity position covering refinancing needs beyond 2024
Strong liquidity position covering refinancing needs beyond 2024 Financial Liquidity as of Sep-22 (Bn) Debt breakdown by Maturity BRL EUR & USD Cash & Equivalents €3.5Bn 8.3 0.4 Available Credit Lines €5.8Bn Total Liquidity 9M22 €9.3Bn €7.2Bn 7.9 3.0 €1Bn 2.8 Bonds Issued in Oct-22 2.4 0.8 2.2 1.8 0
Slide 22: Increase in Net Debt
Increase in Net Debt impacted by the acceleration of Net expansion investment and temporary WC due to higher commodity prices Change in Net Debt € Bn 15.3 +€5.1 Bn Gross Expansions Investments 0.5 -€1.5Bn Asset Rotation Proceeds 0.7 +€0.6 Bn Forex Organic CF 2.9 11.6 1.4 1.1 Net Debt Recurring Cash
Slide 23: Recurring Net Profit penalized by higher financial costs in Brazil
Recurring Net Profit penalized by higher financial costs in Brazil and increase of minority interests Recurring Net Profit (1) Reported Net Profit €m Δ YoY €m EBITDA 3,046 +534 +1% YoY D&A and Reported (1) 510m 518m Provisions 1,223 +120 EBIT 1,822 +654 Non-recurring items 0m +6m Net Financial Costs
Slide 24: 9M22 Closing Remarks
9M22 CLOSING REMARKS
Slide 25: Resilient and diversified portfolio support 2022 performance
Resilient and diversified portfolio support 2022 performance and upfront execution of 21-25 plan, CMD Mar-23 to provide updated targets Maintenance 2022 Recurring Net Profit 2022 > 2021(1) Guidance Current Target Secured Upfront execution Committed renewable capacity 10.8GW 20GW 55% 4.3 GW under con
Slide 26: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
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