EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — Investor Presentation (March 2024)
43 slides from EDP Renewables SA's investor presentation, March 2024
Slide 1: Investor Presentation March 2024
Investor Picture Presentation March 2024 www.edpr.com Ávila Hybrid Spain
Slide 2: Agenda
Agenda 1 Our Sector 2 EDP Group Vision 3 EDPR at a Glance 4 Our Strategy 5 FY23 Results & Updates 6 Appendix 2
Slide 3: Our Sector
Our Sector
Slide 4: The energy transition is ever more pressing to address climate change
Our Sector The energy transition is ever more pressing to address climate change… in 2022… 5th Record high CO2 emissions warmest year since 1880 8 ocean stations Antarctic Sea ice observed water levels at an reached its all-time high lowest min. extent +100m +100,000 ha people living in coastal area
Slide 5: Need for endogenous, affordable and reliable energy
Our Sector … and is further reinforced by the need for endogenous, affordable and reliable energy Shifting global dynamics… … further emphasize the need for Decrease in gas flows ~50% reduction of Russian gas flows to Europe, driven by ongoing conflict1 (Clean) Energy Increase in energy prices indep
Slide 6: Unprecedented strategic commitments to accelerate the energy transition
Our Sector Many reactions came with unprecedent strategic commitments to accelerate the energy transition Change is already happening... … with existing challenges being addressed Inflation Reduction Act > $400bn in climate spending to reduce emissions >40% by 2030 Expansion and extension of PTCs an
Slide 7: Triple renewables capacity between 2022 and 2030 to reach 1.5oC target
Our Sector Triple renewables capacity between 2022 and 2030 is required to reach the 1.5oC target +50% 90% EU recommends net EU recommends net greenhouse gas emissions At the core of the greenhouse gas emissions 90% reduction by 2040, 90% reduction by 2040, energy transition compared to 1990 levels
Slide 8: EDP Group Vision
EDP Group Vision
Slide 9: EDP Group - Segments fully aligned with energy transition
EDP Group Vision EDP Group - Segments fully aligned with energy transition Distribution & Transmission <€5.0bn €7.0bn €7.5bn ~€8.0bn We are an Networks RAB 100% energy 93% transition Renewables 74% Generation leader, 60% >50 GW 33 GW creating Renewables 22 GW Installed Capacity superior value EBITDA
Slide 10: EDPR at a Glance
EDPR at a Glance
Slide 11: Global pure renewables player with a portfolio of 16.6 GW
EDPR at a Glance Global pure renewables player with a portfolio of 16.6 GW with more than 3,000 employees worldwide EDPR global wind and solar installed capacity Leading pure renewables player, with ~20 years of track record Differentiated and leading position in the Europe attractive US market Ocea
Slide 12: Extensive track record of secular growth with debt under control
EDPR at a Glance Extensive track record that has delivered secular growth with debt being kept under control Remarkable performance over the last decade… … backed by outstanding execution of our business plans 2013 2023 513 Solid portfolio creation through the +13% CAGR ~2x investment in quality pro
Slide 13: Lean and independent Corporate Governance model
EDPR at a Glance Lean and independent Corporate Governance model in line with best practices Key Highlights1 General Shareholders’ Meeting Independent Chairman 12 Board members Board of Directors Executive Directors Non-Executive Directors 2 Executive directors (CEO and CFO) 33% Women Management Tea
Slide 14: Our Strategy
Our Strategy
Slide 15: Commitment to lead the energy transition and create superior value
Our Strategy We strengthen our commitment to lead the energy transition and create superior value, further reinforced by the current context >4 GW/yr Net Zero renewables deployed 2023-26 by 2040 A leading global renewables major Double wind and solar installed Pure 100% renewable player capacity by
Slide 16: Successfully ramping up growth, with flexibility to accelerate
Our Strategy We are successfully ramping up growth, with flexibility to further accelerate… EDPR gross additions Average GW per year >4 GW/yr Flexible pipeline allowing to adjust ~17 GW growth pace… (2023-26) >5x … with acceleration of organic in-house 2.4 development… 1.2 0.7 … and capturing additi
Slide 17: ~17 GW additions in 2023-26 with geographical and technological diversification
Our Strategy … adding to our portfolio ~17 GW of renewable capacity in 2023-26, with geographical and technological diversification… Additions by geography Additions by technology GW GW Wind Offshore Wind Onshore ~6.3 ~0.7 Europe 37% 4% ~1.4 Solar DG ~5.0 29% 8% ~1.2 APAC ~17 GW1 7% ~17 GW1 Gross Ad
Slide 18: Leveraging superior assets and infrastructure for further renewables deployment
Our Strategy … while leveraging our superior assets and infrastructure as a competitive advantage for further increased renewables deployment Hybridization Repowering Storage Hydrogen Leveraging existing grid Increasing installed capacity +0.5 GW battery storage Allowing for RES deployment connectio
Slide 19: Solid investment plan across core technologies
Our Strategy … backed by a solid investment plan that will consolidate our presence across our core technologies with differentiating value propositions (~5.0 GW) Wind Onshore ~40% Top 4 global1 player with extensive track record along the full value chain with highly experienced teams Solar Utility
Slide 20: Leveraging our distinctive Asset Rotation model
Our Strategy We will keep leveraging our distinctive Asset Rotation model… Asset Rotation strategy allows for superior value creation… … proven by a consistent track record ~€7bn AR proceeds and capital gains >€20bn EV1 rotated track record since 2012 >4 GW/yr Upfront value crystallization reinveste
Slide 21: Crystallizing value to further empower growth
Our Strategy … crystallizing value that will enable to further empower growth… Leveraging our Asset Rotation strategy… … with prudent assumptions on capital gains Asset Rotation proceeds1 (€bn/yr) Asset Rotation EBITDA gains (€bn/yr) ~1.7 1.7 ~1.7 ~0.5 0.5 1.6 0.3 ~0.3 BP 2021-22 2023 BP BP 2021-22
Slide 22: Consolidating our superior renewables portfolio
Our Strategy … consolidating even more our superior renewables portfolio Evolution of installed capacity 2026 Geographic mix 2026 Technologic mix GW % % ~2x installed ~5 ~27 7% 2% 2% 2% capacity (vs. 2020) 7% 8% ~17 27 GW 48% 27 GW 30% ~15 ~85% 34% 58% ~12 From core low risk markets ~9 North America
Slide 23: Diversified sources of cash to deliver on our growth
Our Strategy Diversified sources of cash to deliver on our growth Net investment expansion 2023-26 Sources of cash 2023-26 €bn €bn ~6 Asset Rotation2 >50% of net ~4 TEI investment financed Gross ~10 by organic cash-flow Investments1 ~20 ~6 ~1 ~4 Net investment Organic Cash Flow3 Equity raise Net Deb
Slide 24: Managing the entire value chain
Our Strategy We manage the entire value chain to ensure the delivery of competitive and quality projects at the highest excellence standards Development Local development knowledge and multi-partnership network Asset financing and tax equity structuring track record in the US >15 GW ~50% Strong comm
Slide 25: Evolving as a global, agile and efficient organization
Our Strategy Evolving as a global, agile and efficient organization ~3,000 2025 ~1,000 ~1,700 ~800 Headcount 2023 2015 2020 2010 Talent strategy Strong value proposition Attraction Experience Development Bringing on-board the best talent Nurturing an unrivaled workplace Preparing for the future, emp
Slide 26: Working towards Net Zero with the best ESG practices
Our Strategy Working every day towards Net Zero, operating with the best ESG practices along the value chain… 2026 Targets WE WILL Decarbonize for a climate-positive world ~4 GW/year green energy Ambition to Net Zero by 2040 WE ARE Empowering our communities Protecting our planet Engaging our partne
Slide 27: Continuing to be an ESG leader recognized by top-tier institutions
Our Strategy … to continue being an ESG leader recognized by top-tier institutions and aim to maintain a leadership position in ESG rating performance Entity Rating Entity Rating Through EDP 77/100 3.9/5 88/100 Sustainability Percentile rank: 85 #1 electric utilities Yearbook Member (Jun-23) (Dec-23
Slide 28: FY23 Results & Updates
FY23 Results & Updates
Slide 29: 2023 generation penalized by below average US wind volumes
FY23 Results & Updates 2023 generation penalized by below average wind volumes in the US due to cyclical El Niño, with a gradual recovery expected over 2024 Below average wind resource in the US with a ~€0.2bn negative impact on EBITDA EDPR North America renewable index deviation EDPR’s portfolio wi
Slide 30: 2023 performance penalized by short-term headwinds
FY23 Results & Updates 2023 performance penalized by short-term headwinds, namely delays in Colombia and US, low wind resources and windfall energy taxes in Europe Recovery in 2024 2023 €178m • 2023 generation penalized by El Niño weather event, namely in US Low wind resources less wind • El Niño co
Slide 31: Recurring EBITDA -14% YoY
FY23 Results & Updates Recurring EBITDA -14% YoY positively impacted by Asset Rotation Gains mitigating weak wind resources and lower electricity prices in Europe Recurring EBITDA per region (€m) 2022 2023 YoY YoY -14% Installed Capacity(1) GW 14.7 16.6 +12% 2,157 Electricity Generation TWh 33.4 34.
Slide 32: Net Debt evolution Dec22 to Dec23
FY23 Results & Updates Net Expansion Investments of €2.9bn and €1bn equity raise result in +€0.9bn Net Debt; Organic CF driven by lower financials and minorities Net Debt Evolution from Dec22 to Dec23 (€bn) €4.2bn Expansion Capex and €0.2bn of Financial Investments, offset by €1.1bn AR Proceeds net
Slide 33: Financial Results decreasing YoY
FY23 Results & Updates Financial Results decreasing YoY driven by $/€ rebalancing strategy and efficient capitalizations despite higher gross debt Financial Results (€m) Lower YoY impacted by $/€ rebalancing along with reversion of -30% the negative impact from forex & derivatives in 2022 449 313 Yo
Slide 34: Net Profit of €513m
FY23 Results & Updates Net Profit of €513m impacted by top line headwinds, compensated with strong execution of Asset rotation transactions and improved financials 2023 Rec. EBITDA to Rec. Net Profit (€m) Recurring Net Profit (€m) YoY 671 EBITDA (1) 1,845 (€312m) 513 (2) D&A (766) (€75m) EBIT 1,078
Slide 35: 2024 guidance update
FY23 Results & Updates 2024 guidance update, continued focus on attractive returns 2024 on track to deliver ~4 GW, with 85% already under construction and 100% secured at attractive long-term prices providing great visibility and resilience to energy markets volatility 2024 started with a strong Bal
Slide 36: Appendix
Appendix
Slide 37: Renewables will accelerate significantly and are the most competitive option
Appendix Renewables will accelerate significantly and are by far the most competitive option Renewables expected to grow significantly by 2050… … driven by the most cost competitive solutions Total renewables capacity1, Global, TW Forecasted EU and US LCOE across technologies, 2030, $/MWh Pool price
Slide 38: A way for a better tomorrow
Appendix A way for a better tomorrow All in all – our ESG commitments 2026 2030 Ambition Goal 2023 target ambition Decarbonize: for a climate-positive world Renewable capacity additions (GW/year) 2.5 4 - Communities: Empowering our Global investment in communities, cumulative1 €6.5m €16m €28m Commun
Slide 39: Reinforcing our established portfolio in core low risk markets
Appendix We are reinforcing our established portfolio, focusing on our core low risk markets Target Additions 2023-26 breakdown Capacity Additions, GW Europe North America South America APAC ~1.5 ~2.1 ~1.3 ~0.1 Gross additions ~3.9 ~4.1 ~0.9 ~0.5 - ~0.7 - ~0.6 ~ 17 GW in 2023-26 ~0.7 - - - ~0.1 ~0.4
Slide 40: OW building a sizeable and attractive offshore portfolio
Appendix OW has been building a sizeable and attractive offshore portfolio, providing significant visibility on growth over the next 10-15 years Offshore Wind Ocean Winds continues to grow with a total portfolio of 16.6 GW… … which provides strong visibility on growth post 2026 Portfolio, GW Gross O
Slide 41: OW is a top offshore player globally
Appendix OW is a top 5 offshore player globally, with a diversified geographical mix in core low-risk markets Strong portfolio of secured projects indexed to inflation Contracted and inflation linked Offshore Wind, GW Contracted revenues Gross Net COD Project Technology and inflation linked Capacity
Slide 42: Low risk profile supported by long-term contracted and hedged generation
Appendix Low risk profile supported by high weight of long-term contracted and hedged: ~90% for 2024, ~85% for 2025 Solid profile with generation at ~90% contracted and hedged for 2024 with hedging coverage at healthy prices. Integrated Energy Management inside EDP Group reducing risk EDPR generatio
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