EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — EDP Renováveis — Investor Presentation (December 2021)
48 slides from EDP Renewables SA's investor presentation, December 2021
Slide 1: Investors' Presentation
INVESTORS' PRESENTATION December, 2021 www.edpr.com Investors’ Presentation 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP Renováveis, S.A. (the "Company") solely for use Forward-looking statements include statements regarding: objectives, goals, strategies, at the presentation to be made on this date and its purpose is merely of informative nature outlook and growth pro
Slide 3: Agenda
Agenda 1 Our sector 2 EDP Group vision 3 Our strategy 4 9M21 results 4 Annex Investors’ Presentation 3
Slide 4: Our sector
Our sector Investors’ Presentation 4
Slide 5: New energy sector at the center of the economy and transformation towards Net Zero
New energy sector at the center of the economy and transformation towards Net Zero We need a new decarbonized and … in which a new energy electrified world… sector is required ~95% -100% Clean renewables coal phase-out share in power in global power 1.5 ºC generation in 2050 by 2050 Affordable 3x Ze
Slide 6: The World is joining forces in this effort
The World is joining forces in this effort Paris Decarbonization and New private and social Agreement renewables targets set commitment demanding and + COP26 supporting clean energy accelerating New regulation underway efforts 189 €750bn $1.20tr $15tr 90% countries EU NextGen Fund American private c
Slide 7: The energy of the future will be electric, clean, affordable and reliable
The energy of the future will be electric, clean, affordable and reliable, requiring an unparalleled renewables growth Unprecedented growth Cost competitive North America + Europe + LatAm LCOE decrease in 2030 vs. 2019 Renewables additions p.a., GW 250-300 Solar PV -35% Below wholesale electricity p
Slide 8: A renewables major with extensive track-record
A renewables major with extensive track- record Installed Capacity GW Top 4 14 GW Saving wind & solar built/added 19 mt/y2 12.6 player1 to date of CO2 2x 9.6 Multi-tech pipeline 8.1 GW backlog >50 GW secured 6.7 >250% TSR 2010-2020 2010 2015 2020 1. Excludes companies incorporated / operating in Chi
Slide 9: EDP Group vision
EDP Group vision Investors’ Presentation 9
Slide 10: Leading the energy transition to create superior value
The World is facing a challenge by 2025 by 2030 €24 bn >50 GW Capex for energy transaction Additions of renewable energy Leading the energy transition to create superior value 4 GW/year 100% All green by 2030 Renewable capacity added Renewable energy generation Double 100% Solar and wind capacity EB
Slide 11: EDP platforms are fully aligned with the energy transition
EDP platforms are fully aligned with the energy transition % Weight on Weight on EBITDA 2025 % CAPEX 2021-25 1 Renewables Clean energy growth ~60% ~80% engine High portfolio Wind, Solar, and Hydro resilience and diversification Networks Energy transition ~30% ~15% Ability to capture different enable
Slide 12: EDP commitments
EDP commitments Accelerated and ESG excellence and sustainable growth attractive returns Step-up green growth Leading the energy transition ESG reference Distinctive and resilient portfolio to create superior value Green leadership positioning Solid balance sheet Strong return visibility Future-proo
Slide 13: Our strategy
Our strategy Investors’ Presentation 13
Slide 14: A top renewables player with an attractive portfolio with 13 GW installed
A top renewables player with an attractive portfolio with 13 GW installed and presence in 17 countries… by MW by # of parks Canada 0.2% 0.3% 130 22% 28% MW 13 7% 307 51% UK Poland 55% GW parks 6,591 5 13% MW MW 556 20% USA MW 5% Belgium 400 Hungary MW 53 North America Spain & Portugal RoE LatAm APAC
Slide 15: Going global by setting up a platform in APAC through the acquisition of Sunseap
… which is going global by setting up a platform in APAC through the acquisition of Sunseap EDPR Global Wind and Solar capacity EDPR + Sunseap 10% 89% Europe 16.2 39% 16.2 48% GW GW 6.3 3% 10% North GW 2% America 7.8 GW Fully complementary to EDPR footprint, APAC geographically and technologically L
Slide 16: Sunseap is a solar focused platform based in Singapore
Sunseap is a solar focused platform based in Singapore with presence in 9 markets and 540 MW operating and under construction… Sunseap footprint Operating and U/C capacity by Market 1% 3% 7% 2% 1% >50% in Singapore, a low-risk Japan market with AAA rating China 540 28% MW 58% Taiwan Young portfolio
Slide 17: Strong pipeline providing visibility on additional growth
… together with a strong pipeline providing visibility on additional growth Sunseap portfolio by Market EBITDA + Equity GW 1% 2% 7% 11% 5.5 6% 5.5 44% GW 18% 2.8 11% Singapore Vietnam Indonesia Malaysia China Taiwan Japan Other SEA ~670 MW of secured capacity 2.0 by Technology 0.13 0.54 Operational
Slide 18: Financial support reinforced by equity issuance concluded in Apr-21
Financial support reinforced by equity issuance concluded in Apr-21 The conditions were set… …to get financial support to our business plan Largest ABB of the year in There is a great appetite in the Europe market for renewables €1.5bn €17.0 Largest ABB ever in Portugal price achieved of capital EDP
Slide 19: Leaner, more independent and diverse Corporate Governance structure
EDPR has implemented a leaner, more independent and diverse Corporate Governance structure in line with best practices Key highlights General Shareholder’s Meeting Independent Chairperson Composed by 12 members Board of Directors Only 2 executive directors Independent directors with 50% representati
Slide 20: Our strategy to deliver superior growth through 2025
Our strategy to deliver superior growth through 2025 Growth Value Excellence Accelerated Ongoing High quality and selective asset rotation teams and growth program efficient operations +20 GW €8bn -2% additions target CAGR 2021-2025 2021-2025 Core Opex/MW Promoting clean energy while operating in a
Slide 21: We will add 20 GW of renewables until 2025
We will add 20 GW of renewables until 2025, focusing in low-risk markets EU & US with a balanced mix between Wind & Solar ~50/50 Focus on NA/Europe and bigger presence on … and technologically diversified other geographies… Wind Wind offshore 6.7, Europe onshore 34% Rest of 0.9, 5% the World Solar 9
Slide 22: We will accelerate to ~4GW/yr with strong visibility on future growth
We will accelerate to ~4GW/yr and we have strong visibility on future growth… Step-change growth in renewables… … with great visibility in terms of pipeline as of Jul-21 Gross additions, GW1/year GW1 >55 20 GW 4.6 3.5 >45 1.6 4.2 8.1 2.7 2020 2021-23 2024-25 8.1 1.2 avg. avg. Added YTD U/C Secured t
Slide 23: 8.1 GW already secured, with sound returns and risk profile
… with 8.1 GW already secured, with sound returns and risk profile… Accelerating growth across all platforms, with +2.7 GW … maintaining a selective and disciplined secured YTD… investment approach Secured Capacity 2021-25 GW Target Actual 75% +2.7GW % 2021-23 IRR/WACC >1.4x ~1.45x 8.1 additions 5.4
Slide 24: Secured capacity well protected from recent capex cost inflation
… which are well protected from recent capex cost inflation Secured Capacity Breakdown Recent Auctions already incorporating higher bid prices % (e.g. Spain Auction) Fully contracted or Higher Revising Bid prices in PPAs under negotiation and still Capex already embedded in ~90% shortlisted Investme
Slide 25: Innovation: new business models and new technologies
Inovation will also be a key part in securing this growth, through our new business models and new technologies New business models New technologies Hybridization Storage Improve asset efficiency and utilization Anticipate the need to face with intermittence Repowering Hydrogen Increase long-term va
Slide 26: Ocean Winds; EDPR/ENGIE 50:50 JV across 6 markets
Ocean Winds; EDPR/ ENGIE 50:50 JV across 6 markets and defined growth targets… with tariff awarded The right governance Moray East SeaMade B&C Wind Combination of the right set of skills 950 MW 487 MW 400 MW along with a successful track record Status: Construction Status: Operation Status: Developm
Slide 27: Ocean Winds operating capacity increasing to 1.5 GW in 2022
… which continues to grow with operating capacity increasing to 1.5 GW in 2022 and expected to reach 3.4 GW by 2025 OW Operating Capacity GW Main updates 8.3 • Moray East finalizing construction on schedule despite Covid challenges • Very active expanding its development in Poland, 4.9 US and South
Slide 28: Accelerating growth maintaining distinctive Asset rotation model
We will accelerate growth, maintaining our distinctive Asset rotation model… Asset rotation model fueling growth… … aligned with our track record4 Asset rotation model capacity Extensive 26 transactions since 2012 GW1/year track record 1.4 1.5 €14.3bn EV3 track record in past transactions 0.9 €8bn2
Slide 29: €2.6bn of asset rotation proceeds secured at attractive multiples
… where we continue with strong execution with €2.6bn of proceeds secured at attractive multiples and €0.15bn(1) gains already booked Strong AR execution at attractive multiples, showcasing the value of EDPR projects EV/MW 1.7 1.25 1.60 €2.6bn of proceeds, €m ~30% of €8bn AR target for 2021-25 €2.6b
Slide 30: Managing the full value chain to deliver competitive projects
We will continue to manage the full value chain to deliver competitive and quality projects at the highest excellence standards Development Construction Operations Competitive Projects On time & on budget Excellence in asset management Local development knowledge and Global scale providing compe
Slide 31: Key core competences and unique know-how to maximize efficiency
We have key core competences and a unique know-how set to maximize efficiency Our unique O&M strategy … … are set to maximize efficiency levels Core Opex / Avg. MW 10 year strategy in optimizing O&M activities by increasing (€k) internalization post-warranty (today 50% of the fleet) Has resulted in
Slide 32: 2025 growth supported by top-class team and best talent
2025 growth will be supported by current top-class team reinforced by best talent in the market attracted by a strong value proposition 2025 2020 2025 2015 >3,000 2010 1,735 1,018 822 Headcount Road to 2025 Committed team developed & reinforced Attract Experience Develop Great company culture Tailor
Slide 33: Strategy to deliver superior value through a solid business model
This ambitious strategy is set in place to deliver superior value through a solid business model… 2020 2023 2025 Installed Capacity GW Step-up growth and scale 12 18 25 >2x EBITDA €bn Increased results with geographic diversification and a 1.65 2.0 2.3 +7% CAGR 20-25 stable Asset Rotation program Ne
Slide 34: Operating with the highest ESG standards
… while operating with the highest ESG standards 2020 2025 Circular economy Recovery rate for generated % wastes in the whole value chain 761 85 Biodiversity Facilities with high biodiversity % risk with action plans defined n/a 100 People Improve diversity and inclusion % by increasing female emplo
Slide 35: 9M21 Results
9M21 Results Investors’ Presentation 35
Slide 36: Results mostly impacted by lower capital gains YoY, ERCOT event and lower generation
Results mostly impacted by lower capital gains YoY, Q1 one-off ERCOT event and lower generation in US and Spain 9M21 Key Figures Highlights EBITDA €917m Clean generation of 21.5 TWh, up +5% YoY -15% YoY Gains of €151m(1) at EBITDA (YoY -€49m) and €122m at Net profit (YoY -€59m) Improvement of avg. c
Slide 37: EDPR portfolio increased to 13.0 GW, +2.5 GW added YoY
EDPR portfolio increased to 13.0 GW, +2.5 GW added YoY Generation +5% YoY due to higher capacity despite low wind resource Installed Capacity YoY Net Capacity Factor 9M21 Electricity Production YoY (EBITDA + Equity MW) (%) (TWh) NCF YoY 9M20 11,548 9M20 20.4 25% - MW 2,467 Added ∆ MW 1.5 30% -1pp
Slide 38: Revenues -5% YoY due to sell-downs, lower avg. price and FX
Revenues -5% YoY due to sell-downs (+2% like for like), lower avg. price of €51/MWh & unfavourable FX, partially offset by new capacity EDPR Avg. Selling Price Revenues (€/MWh) (€ million) -6% 9M21 YoY (1) -5% -2% +2% adjusted(2) 1,259 ex Sell-down -10% 1,192 54.7 €73.8 51.2 $45.6 +1% R$239 +9% 9M
Slide 39: Core Opex per avg. MW +1% YoY and EBITDA of €917m
Core Opex per avg. MW +1% YoY and Adjusted -3% YoY EBITDA of €917m due to top line & lower capital gains YoY Core Opex/avg. MW EBITDA (€k) (€ million) +1% -15% -3% -9% EBITDA per region adjusted(1) 1,074 adjusted(2) 31.1 31.4 RoE 917 17% Brazil 3% Portugal 15% €917m Spain 13% North America 52% 9M20
Slide 40: Net Profit totaled €148m decreasing 54% YoY
Net Profit totaled €148m decreasing 54% YoY, driven by top line performance and lower gains, partially offset by improved financials 9M21 EBITDA to Net Profit (€ million) €m YoY EBITDA 917 -€156m Top line performance and lower gains YoY D&A 445 -€15m On the back of YoY capacity additions EBIT 472 -
Slide 41: Net Debt and Tax Equity increases €191m
Net Debt and Tax Equity increases €191m, with AR proceeds and the capital increase offsetting growth acceleration 9M21 from RCF to Debt and TEI variance 9M21 Financial Debt Breakdown (€ million) (%) +554 Variable +1,500 13% 14% Other 645 46% 73% (191) (613) Fixed Loans 87% with EDP (2,200) 14% 54% (
Slide 42: ESG continues at the core of EDPR
ESG continues at the core of EDPR, with YoY evolution reflecting acceleration of growth Environment Climate Change Circularity (2) Biodiversity CO2 avoided (1) CO2 emitted / avoided Waste Recovery rate Spills & fires (3) Near misses 13 mt 0.2 % 38 kg/GWh 76 % 0 56 -1% vs 9M20 Flat vs 9M20 +11% vs 9M
Slide 43: 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 44: Key takeaways
Key takeaways EDPR is now really going global with platforms established in 25 markets, which exposes the company to ~75% of the worldwide growth until 2030 We established a growth platform in APAC jointly with Sunseap, fully consistent to our portfolio and to our a low-risk long term contracted pro
Slide 45: Annex
renewables
Slide 46: Ocean Winds continues to grow with operating capacity increasing to 1.5 GW in 2022
Ocean Winds continues to grow with operating capacity increasing to 1.5 GW in 2022 and expected to reach 3.4 GW by 2025 Total portfolio of up to 8.3 GW with Ocean Winds very active expanding its development in Poland, US, and South Korea, while currently participating in the MA RfP for Mayflower and
Slide 47: IR Contacts
IR Contacts André Fernandes, Head of IR Pia Domecq Celia de Cominges Duarte Andrada E-mail: ir@edpr.com Phone: +34 914 238 402 Fax: +34 914 238 429 Serrano Galvache 56, Edificio Olmo, 7th Floor 28033, Madrid - Spain EDPR Online Site: www.edpr.com
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EDP Renováveis — Investor Presentation (December 2021) on 6ix