Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — FY2021 Earnings Presentation
26 slides from Edp's earnings presentation, Feb 18, 2022
Slide 1: 2021 Results Presentation, Lisbon
Lisbon, 18" Febru fe PEREIRA BARRETO SOLAR-PARK—
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: Delivery of 2021 financial guidance supported by value accretive growth
Delivery of 2021 financial guidance supported by value accretive growth aligned with the Energy Transition Main Targets Delivered Guidance 2021 2021 Figures(1) ΔYoY Highlights Recurring ~€3.7 Bn €3,735m +7% • Good performance EBITDA in RES (+2.6GW, strong asset rotation) Recurring >€800m €826m +6% N
Slide 4: Strategic commitments on track as we step up to the challenge
Strategic commitments on track as we step up to the challenge to deliver superior value creation in a challenging context 2021 Execution 2021-2025 Target 8.4 GW of secured renewable capacity (2.6 GW added, 1.8 GW U/C) 42% 20 GW of gross additions 2021-25 Asset rotation(1): ~€2.8 Bn proceeds ~8Bn pro
Slide 5: We extended our renewables global presence, +12 markets, a new APAC platform
Renewables We extended our renewables global presence, +12 markets, a new APAC platform, sizeable additions in solar & off-shore technologies Accelerated and sustainable growth We have been expanding our renewable …focused on geographic & technology footprint to 21GW(2) … diversification Record wind
Slide 6: 8.4 GW of capacity additions secured for 2021-25
Renewables 8.4 GW of capacity additions secured for 2021-25, covering 75% of 2021-23 growth target, with a resilient business model Accelerated and sustainable growth … maintaining a selective and disciplined Accelerating growth across all platforms… investment approach 90% of capacity with CAPEX fu
Slide 7: EDP's asset rotation execution has been strong in 2021
Renewables EDP’s asset rotation execution has been strong in 2021 in distinct fronts with significantly higher gains vs BP Accelerated and sustainable growth Strong asset rotation performance in 2021… … starting 2022 ahead of schedule Asset Rotation Gains AR proceeds already signed for completion €m
Slide 8: Electricity Networks Iberia: Stable regulatory framework for 2022-25 in Portugal
Electricity Networks Electricity Networks Iberia: Stable regulatory framework for 2022-25 in Portugal with indexation to yields and inflation Accelerated and sustainable growth Electricity Networks Iberian Outlook Regulated Revenues 2021 2022E 2022-2025E Rate of Return indexed to Portuguese 10 Year
Slide 9: Electricity Networks Brazil: Strong growth supported by grid expansion
Electricity Networks Brazil: Strong growth supported by grid expansion and inflation updated regulated revenues Accelerated and sustainable growth Growth in transmission supported by CELG-T … and steady growth of CAPEX and inflation acquisition… update of regulated revenues in distribution Exposure
Slide 10: Diversified generation mix limits adverse impact from low hydro volumes
Client Solutions & Energy Management Diversified generation mix limits adverse impact from low hydro volumes in early 2022, for 2023-25 avg. hedged volumes at ~40% Accelerated and sustainable growth Wholesale Electricity Prices Iberia Baseload Selling Price Iberia 2022-2025 €/MWh Average €/MWh 250 ~
Slide 11: Adapting our organization to the energy transition
Adapting our organization to the energy transition and reinforcing purpose and engagement Future-proof organization Workforce evolution by platform 2020 vs. 2021 Purpose & Engagement -4% -1% +21% +0.5% EDP recognized as +56 Top Employer Succession plans for top management. 81% of vacant management p
Slide 12: EDP is recognized by successfully integrating ESG excellence
EDP is recognized by successfully integrating ESG excellence in the core of our strategy ESG excellence and attractive returns Stepping up green leadership position… …while being recognized by ESG Performance (%) Renewables Generation Revenues Alligned with EU Taxonomy 80% 75% 74% 70% 66% 63% World
Slide 13: Financial Performance
FINANCIAL PERFORMANCE => ws | 2021 YEAR-END _| RESULTS
Slide 14: Recurring EBITDA +7% YoY with strong growth in Electricity Networks
Recurring EBITDA +7% YoY with strong growth in Electricity Networks’ mitigating the weak performance in Energy Management Iberia Recurring EBITDA(1,2) €m YoY growth, % +7% YoY (ex-forex +9% ) ∆ YoY 3,735 3,504 EDPR Installed Capacity +12% YoY (3) Wind resources -4% vs. LT avg Asset rotation gains €5
Slide 15: Wind & Solar EBITDA +6% YoY prompted by higher asset rotation gains
Wind & Solar EBITDA +6% YoY prompted by higher asset rotation gains Wind & Solar EBITDA €m YoY growth, % 2020 2021 YoY 6% YoY Installed Capacity(1), GW 12.2 13.6 +12% 1,760 1,655 Prod. deviation vs exp LT Gross -4% -4% 0 p.p. Capacity Factor, %(2) 950 Europe 856 11% Electricity Production, TWh 28.5
Slide 16: Hydro recurring EBITDA -3% YoY, impacted by deterioration of hydro resources
Hydro recurring EBITDA(1) -3% YoY, impacted by deterioration of hydro resources in Iberia in 4Q21 Hydro Recurring EBITDA(1) €m YoY growth, % 2020 2021 YoY YoY -3% Hydro resources vs. LT Avg(2) , % -3% -7% -4 p.p. 554 535 Reservoirs, % 56 35 -38% Iberia 426 360 -16% GSF , % 83% 77% -6 p.p. PLD 177 28
Slide 17: Electricity Networks Recurring EBITDA +51% YoY
Electricity Networks Recurring EBITDA +51% YoY with the integration of Viesgo in Spain, inflation updates and expansion capex in Brazil Elec. Networks Recurring EBITDA(1) €m YoY growth, % 2020 2021 YoY Return on RAB Portugal (2), % 4.85% 4.76% -9 bps +51% YoY 1,340 Return on RAB Spain, % 6,00% 5,58%
Slide 18: Client Solutions & EM Recurring EBITDA penalized by strong increase of 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, % Tough YoY comparison vs. very strong 2020 in EM -73% YoY 2021 EM penalized by negative mark-to- 446 market of hedging, high energy
Slide 19: High energy prices with negative impact in 2021, mitigated through risk optimization
High energy prices with negative impact in 2021, mitigated through risk optimization within an integrated portfolio in Iberia Risk mitigation through integrated portfolio strategy(1) € Bn 1 0.0 Higher energy costs not passed-through to our clients (short position, higher sourcing costs and unexpecte
Slide 20: Net financial costs decline in 2021 due to positive one-off impacts
Net financial costs decline in 2021 due to positive one-off impacts and flat cost of debt Avg. Cost of Net Financial Costs(1) % Debt(2) €m ~+20bp Avg. cost of debt in BRL up to 9.3% vs. 3.3% 3.5% 6.9%; (BRL with a 12% weight on total debt) 671 0% 94 577 578 1 Proactive liability management to lower
Slide 21: EDP well protected against inflationary and interest rate pressures
EDP well protected against inflationary and interest rate pressures with >70% of non-fixed revenues and ~70% of fixed rate debt EDP Revenues(1) with limited exposure to inflation Debt breakdown by rate & currency Potential upside from BRL Other 2023 onwards as hedges roll over Floating 12% 100% 31%
Slide 22: Net Debt decreased 6%, capex growth offset by EDPR capital increase
Net Debt decreased 6%, capex growth and temporary higher working capital offset by EDPR capital increase and hybrid bond issuances Change in Net Debt € Bn +€3.3Bn Gross Expansion Investments 2.0 -€1.4Bn Asset Rotation proceeds 2.5 Including Asset +€0.3Bn Forex rotation proceeds in 12.2 PT cashed in
Slide 23: Recurring Net Profit +6% YoY as a result of EBITDA & EBIT growth
Recurring Net Profit +6% YoY as a result of EBITDA & EBIT growth, lower net financial costs and higher minority interests Recurring Net Profit (1) Δ YoY Recurring Net Profit €m €m EBITDA 3 735 +231 6% YoY D&A and 826 Provisions 1 512 -156 780 EBIT 2 223 +75 Net Financial Costs 551 +49 Income Taxes 3
Slide 24: Closing Remarks
2021 RESULTS Closing Remarks
Slide 25: Key takeaways: On track to deliver 2021-2025 targets
Key takeaways: On track to deliver 2021-2025 targets Delivery of 2021 guidance, with strong growth in networks, very positive asset rotation gains off-setting negative short-term impact of high energy sourcing costs and energy hedging mark-to-market Flexible portfolio in energy markets: Diversified
Slide 26: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
EDP - Energias de Portugal — FY2021 Earnings Presentation on 6ix