Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Q1 2023 Earnings Presentation
24 slides from Edp's earnings presentation, May 5, 2023
Slide 1: 1Q23 Results Presentation
@edp wa fi 1Q23 Results Presentation, Lisbon, May 5"
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: Sound financial performance in 1Q23 supported by normalization of Hydro resources
Sound financial performance in 1Q23 supported by normalization of Hydro resources in Portugal 1Q23 Main Highlights Financial Results Recurring figures Strong YoY recovery of hydro conditions resulted in hydro production above expected (+0.4 TWh) 1Q23 4Q22 1Q22 Wind & Solar EBITDA (+€0.1 Bn YoY) on c
Slide 4: Strong recovery of hydro generation and sustainable reservoir levels
Strong recovery of hydro generation and sustainable reservoir levels as of today gives us confidence for the remaining 2023 Recovery of hydro volumes in 22/23 winter… …with hydro reservoir levels still above Average Reservoir levels in Portugal (%) Iberia Avg. Elect. Spot 229 183 146 113 96 Price (€
Slide 5: Portuguese electricity system has showed strong resilience in 2022
Portuguese electricity system has showed strong resilience in 2022 environment of high electricity and gas wholesale prices in Europe Stable end-user electricity prices in Portugal supported by …price stability achieved without compromising significant weight of long-term contracted renewables… fina
Slide 6: 1.5 GW renewables secured capacity since CMD reaching ~50% of target
1.5 GW renewables secured capacity since CMD reaching ~50% of the target for 2023-2026 Secured Capacity for 2023-2026 Growth of secured capacity supported by GW strong renewables demand % % of target additions +1.5 GW secured in March & April diversified by 6 markets, mainly in EU and US, and 3 tech
Slide 7: Accelerating leading global Solar DG business
We continue to accelerate our leading global Solar DG business, deploying 0.3 GW over the last 12 months GWac Installed capacity Installed capacity, GWac Main Highlights Up to 500 MWac signed w/ Google, largest corporate sponsorship for DG signed between two 0.1 companies in the US 0.2 GW GW High gr
Slide 8: Limited exposure to short term interest rates, ~€2 Bn pre-hedged refinancing
Limited exposure to short term interest rates, ~€2 Bn pre-hedged refinancing cost for 23-24, and continued high demand for clean energy asset rotations Debt by interest rate Avg. nominal debt by type as of Mar. 23 currency as of Mar. 23 % % Fixed EUR Asset Rotation for 2023 launched and on track to
Slide 9: Tender offer on EDP Brasil: Auction expected in 3Q23
Tender offer on EDP Brasil: Auction expected in 3Q23, €1Bn investment in case of 100% success, already funded through EDP’s €1bn capital raise CVM review process & Timeline Rationale for the acquisition March 2 - 1st filing with CVM March 17 - Minorities deadline to question the appraisal Simplifica
Slide 10: 2023 showing an important step forward on EDP's emissions reduction
Following 2022’s energy crisis in Europe and drought in Iberia, 2023 showing an important step forward on EDP’s emissions reduction Scope 1 & 2 Emissions Intensity (gCO2/kWh) Key emissions & EU Taxonomy metrics 152 -49% 88% 97.4% Renewables in CAPEX aligned Total Generation with EU Taxonomy (+10 p.p
Slide 11: Financial Performance
FINANCIAL PERFORMANCE...
Slide 12: Recurring EBITDA +2x YoY prompt by a recovery on hydro conditions
Recurring EBITDA +2x YoY prompt by a recovery on hydro conditions and lower electricity and gas sourcing costs Recurring EBITDA1 ,€m YoY growth, % +96% YoY Excl. FX ∆ YoY +100% 1,478 1,415 • EDPR Installed Capacity +5% YoY • Electricity generation increased 11% +€54m EDPR +718m +€665m Hydro, • Avg.
Slide 13: Wind & Solar EBITDA +14% YoY on higher generation and prices
Wind & Solar EBITDA +14% YoY on the back of higher generation and higher prices Wind & Solar Recurring EBITDA1 €m YoY growth, % ∆ YoY +14% 1Q22 1Q23 YoY 448 Installed Capacity2, GW 14.0 14.8 +5% 394 Prod. deviation vs. exp. LT Gross 2% -2% -3 p.p. Capacity Factor, % 255 Europe 210 +45m +21% YoY Elec
Slide 14: Performance in Iberia marked by an overturn of operating conditions
Performance in Iberia marked by an overturn of operating conditions following an extremely adverse context in 1Q22 Hydro, Clients & EM Recurring EBITDA €m YoY growth, % Iberia 1Q22 1Q23 YoY ∆ YoY 605 Hydro Generation, TWh 1.5 3.5 +125% 419 Thermal Generation, TWh 3.9 2.1 -45% +666m 527 Electricity s
Slide 15: Strong rebound in Iberia vs. the very weak 1Q22
Strong rebound in Iberia vs. the very weak 1Q22, which was penalized by the drought in Iberia and record-high electricity sourcing costs EBITDA Hydro, Clients and Energy management in Iberia, € Bn • Mostly related with Cheniere gas contract • Normalization of hydro resources in Portugal ~0.2 0.53 •
Slide 16: Electricity Networks Recurring EBITDA +5% YoY
Electricity Networks Recurring EBITDA +5% YoY reflecting transmission expansion in Brazil, Rate of Return in Portugal indexed to 10Y bond yields Electricity Networks Recurring EBITDA €m YoY growth, % Iberia 1Q22 1Q23 YoY +5% ∆ YoY Return on RAB Portugal , % 4.80% 5.56% +77 bps 362 381 Return on RAB
Slide 17: Net Financial costs impacted by forex MtM, interest related costs +27%
Net Financial costs impacted by forex MtM, interest related costs +27% penalized by 90bps increase in avg. cost of debt (at 3.1% ex-Brazil) Net Financial Costs Cost of Debt1 Brazil EDP excl Brazil €m €m 2.3% 3.1% +27% 260 Avg. Cost 52 243 17 of Debt Excl. Brazil 191 4.8% 173 17 41% 43% 59% 3.9% 57%
Slide 18: >€10 Bn financial liquidity as of Mar-23 covering refinancing needs
>€10 Bn financial liquidity as of Mar-23 covering refinancing needs beyond 2025 Financial liquidity as of Mar-23 EDP consolidated debt maturity profile as of Mar-231 € Bn € Bn EDP Brasil EDP SA & EDP Finance BV and Other Cash & Equivalents 4.1 4.5 2.9 2.5 Available Credit Lines 6.2 2.0 2.3 1.9 Of wh
Slide 19: Solid balance sheet with net expansion investment funded through capital increase
Solid balance sheet with net expansion investment funded through Capital increase but penalized by higher Regulatory Receivables Change in Net Debt € Bn 1.2 2.0 13.2 1.1 13.1 0.4 0.0 Net Debt Recurring Regulatory Net Expansion Equity raise FX and Other Net Debt Dec-22 Organic CF WC3 Investments at E
Slide 20: Net Profit of €306m vs. an abnormally weak 1Q22
Net Profit of €306m vs. an abnormally weak 1Q22, strong EBIT growth partially mitigated by higher financial costs and effective tax rate Recurring Net Profit1 Recurring Net Profit €m Δ YoY €m 359 306 EBITDA 1,415 +706 D&A and Provisions 426 -38 EBIT 990 +668 Higher EBT in Portugal and -76 Net Financ
Slide 21: 1Q23 Closing Remarks
1Q23 CLOSING REMARKS =...
Slide 22: Closing Remarks
Closing Remarks Good start of the year, with sound 1Q23 EBITDA growth supported by hydro normalization in Portugal, strong wind and solar volumes, with hedging roll over new PPAs and revenues inflation updates in renewables and electricity networks having a positive impact at the top line. Visibilit
Slide 23: Q&A
Q&A
Slide 24: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
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