Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Q1 2021 Earnings Presentation
23 slides from Edp's earnings presentation, May 13, 2021
Slide 1: 1Q21 Results Presentation
1Q21 Results Presentation Lisbon, 13 May 2021
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: 1Q21 Highlights: -8% Recurring EBITDA compensated by stronger bottom line
1Q21 Highlights: -8% Recurring EBITDA (~0% ex-forex) compensated by stronger bottom line with Recurring Net Profit +6% YoY 1Q21 Key Figures(1) Highlights Recurring €844m EBITDA Strong Hydro Resources (+28% vs. avg) (ex-forex ~0% YoY) Distributed Volumes increase in Brasil (+4.4%) Recurring €159m(2)
Slide 4: Well diversified portfolio and risk management offset main challenges
Despite some headwinds in 1Q21, a well diversified portfolio together with risk management best practices allowed to offset main challenges Strong Hydro Inflation-linked Long-term Resources in Iberia Revenues in Brasil Contracted (2) deviation vs. historical avg, % share of EDP Brasil, % share of ED
Slide 5: Continued political support towards decarbonization
Continued political support towards decarbonization with positive developments for the overall sector 29-Mar Biden Administration pushes for US targets NextGen EU Funds (€ 750 Bn) 30 GW of offshore wind by 2030 focused at least 37% in Climate transition Mar/Apr and 20% on Digital transition 02-Apr I
Slide 6: +6.4 GW capacity additions secured for 21-25 and Asset Rotation on track
+6.4 GW capacity additions secured for 21-25 and Asset Rotation on track at attractive valuations Accelerated & sustainable Continued Accelerated and Sustainable ~€1.1Bn deals signed with closing in 2021 growth Growth… & expected gains of ~€0.2Bn +1.2 GW(1) of Wind & Solar net capacity added over th
Slide 7: Successful execution of EDPR Capital Increase de-risking the 21-25 plan
Successful execution of EDPR Capital Increase well received by the market, de-risking the 21-25 plan and reinforcing our Balance sheet Accelerated & sustainable Positive market feedback and ….Reinforcement of Balance Sheet growth investor appetite… acknowledged by rating agencies S&P Upgrades to BBB
Slide 8: Organizational alignment with global business platforms in place
Organizational alignment with global business platforms in place together with a clear roadmap to deliver the next growth cycle Future-proof organization Structure simplification and organizational 40 Global initiatives launched to fast-track alignment with global business platforms to drive executi
Slide 9: EDP continues its decarbonization path with 85% Renewable generation
EDP continues its decarbonization path and increased presence in Renewables with 85% Renewable generation in 1Q21 ESG excellence and attractive Electricity generation mix, % returns (1) CO2 Specific Emissions(2) -9% YoY | -69% vs. 2015 Gas & Other Coal Revenues from coal -37% YoY to 4% in 1Q21 7% 8%
Slide 10: Important milestones on best Governance standards
Important milestones achieved on EDP’s commitment to implement the best Governance standards ESG excellence and attractive returns Newly appointed General Supervisory New EBD’s remuneration policy in Board line with best practices Dual Model of Corporate Governance, ensuring Long-term incentive sett
Slide 11: Financial Overview
Financial Overview
Slide 12: Recurring EBITDA -8% YoY, US renewables penalized by Ercot event
Recurring EBITDA -8% YoY (flat ex-forex), US renewables penalized by Ercot event/low load factors, normalization of Energy Management Iberia Recurring EBITDA(1,2) €m YoY growth, % -8%YoY (ex-forex ~0%) ∆ YoY 912 ERCOT | Polar Vortex in Feb-21 -€35m 844 Wind resources in US -7% vs. LT avg EDPR avg. I
Slide 13: W&S EBITDA -21% YoY, impacted by ERCOT event
W&S EBITDA -21% YoY, impacted by ERCOT event that penalized both avg. load factors and avg. selling price in US in 1Q21 Wind & Solar EBITDA €m YoY growth, % 1Q20 1Q21 YoY -21% YoY (ex-forex -18%) Avg. Installed Capacity, GW 10.5 11.4 +8% 340 Prod. deviation vs exp LT Gross 269 Capacity Factor, % -6%
Slide 14: Hydro recurring EBITDA up by 16%
Hydro recurring EBITDA(1) up by 16%, prompted by very strong hydro resources in Iberia and normalization of allocation strategy in Brazil Hydro Recurring EBITDA(1) €m YoY growth, % 1Q20 1Q21 YoY +16% YoY (ex-forex 25%) Hydro Production(2,3), TWh 3.5 4.2 +22% 177 153 Hydro resources vs. LT Avg(4) , %
Slide 15: Electricity Networks EBITDA +31% YoY
Electricity Networks EBITDA +31% YoY due to the contribution of Viesgo (+€43m), OPEX savings and positive developments in Brasil Electricity Networks EBITDA €m YoY growth, % 1Q20 1Q21 YoY +31% YoY Return on RAB Portugal (1), % 4.81% 4.75% -6 bps (ex-forex 45%) 310 Return on RAB Spain, % 6.00% 5.58%
Slide 16: CS&EM recurring EBITDA -55% YoY
CS&EM recurring EBITDA(1) -55% YoY justified by exceptional strong performance in Iberia energy management activities during 1Q20 CS&EM Recurring EBITDA €m YoY growth, % -55% YoY Penetration of new client solutions 29% (vs. 25% 1Q20) 193 Distributed Solar installations +36 MWp (YTD)(2,3) Closure of
Slide 17: OPEX cash recurring +7% and -3% like-for-like
OPEX cash recurring +7% and -3% on a like-for-like base (ex-growth) YoY as we continue to focus drive efficiency across the Group OPEX Cash Recurring €m Key Highlights YoY growth, % -3% Like-for-Like Higher headcount in EDPR (+251 YoY) more than compensated by a leaner organization in other business
Slide 18: Net financial costs slight decrease after adjustments
Net financial costs slight decrease after adjusting by bond buy-back impact in 1Q20 and forex gains in 1Q21 Green bonds Avg. Cost of Bonds issued Net Financial Costs(1) % Debt(2) €m Amount Coupon Maturity Jan-20 (hybrid) €750m 1.70% 2080 3.4% 3.3% Apr-20 €750m 1.63% 2027 -2% Sep-20 USD850m 1.71% 202
Slide 19: Net Debt increase explained by cash capex & working capital
Net Debt increase mostly explained by cash capex & working capital optimization in the context of high financial liquidity Adj. Net x Debt / EBITDA Change in Net Debt (1) FFO/Net Debt (2) €Bn % 3 13.1 0.1 12.2 1.2 ~21% 0.2 1.5 ~19% ~19% 11.6 -€0.2 Bn WC +€0.5Bn WC on fixed asset suppliers Net Debt O
Slide 20: Recurring Net Profit +6% on improved financial results and lower tax rate
Recurring Net Profit +6% benefitting from improved financial results and lower effective tax rate Recurring Net Profit (1) Δ YoY Recurring Net Profit (1) €m €m 6% YoY (ex-forex +15%) EBITDA 844 -69 D&A and 159 369 +8 150 Provisions EBIT 475 -61 Net Financial Costs 123 +26 Income Taxes 63 +31 1Q20 1Q
Slide 21: Closing Remarks
Remarks Tate) Clos
Slide 22: Strategic commitments on track to deliver superior value creation
Strategic commitments on track as we step up to the challenge to deliver superior value creation Key figures and targets 1Q21 €24 Bn CAPEX in energy transition(1) €0.7 Bn (93% in RES + Networks) 6.4GW secured (32%) & +3.2 GW 20 GW gross additions(1) added YTD+U/C €8 Bn asset rotation ~€1.1 Bn signed
Slide 23: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
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