Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Presentation (September 2021)
29 slides from Edp's investor presentation, September 2021
Slide 1: Investor Presentation
Investor Presentation Lisbon, September 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: We have accelerated growth and expanded to new geographies across different technologies
We have accelerated growth and expanded to new geographies across different technologies Accelerated & sustainable Continued accelerated growth in …entrance into new markets with regulatory growth renewables… stability & high growth prospects +2.1 GW of Wind & Solar Gross (1) Strong execution capaci
Slide 4: We have 6.7 GW capacity additions secured for 21-25 while maintaining disciplined investment criteria
We have 6.7 GW capacity additions secured for 21-25 while maintaining a disciplined investment criteria Accelerated & sustainable growth 64% of Capacity Secured for 2021-23 …while maintaining a selective and additions… disciplined investment approach GW Target Actual 6.7 0.3 IRR/WACC >1.4x ~1.5x 2.5
Slide 5: We have a policy of contracting major equipment upfront at fixed price
We have a policy of contracting major equipment upfront at fixed price mitigating concerns on capex cost inflation Accelerated & sustainable growth Major equipment Fixed price with no commodity risk for EDPR ~85% fully contracted(1) Major equipment partially Mostly for 2023 CODs, for which prices ar
Slide 6: We are delivering on Asset Rotation execution with €2.2 Bn of proceeds secured
We are delivering on Asset Rotation execution with €2.2 Bn of proceeds secured at attractive multiples Accelerated & sustainable growth EV/MW 1.75 1.25 1.6 €m €2.2 Bn ~28% €8 Bn target Gain €101m Gain/MW €250k €0.5 Bn On track +€ 300m capital gains in Bright Stalk & Indiana Crossroads Wind Wind Rive
Slide 7: We continue to witness a policy environment highly supportive of the energy transition
We continue to witness a policy environment highly supportive of the energy transition Accelerated & sustainable growth June-21 ITC & PTC eligibility extension 14-Jul EU Fit for 55 legislative package focusing in cutting emissions by at least 55% vs. 2-year eligibility extension 1990 levels, until 2
Slide 8: We are delivering strong operational performance in Networks
We are delivering strong operational performance in Networks, on track to crystalize value in a high-quality assets’ portfolio Accelerated & sustainable growth Strong performance in Network driven by Working on an Asset Rotation business growth, efficiency & digitalization model in Transmission in B
Slide 9: We continue to accelerate services penetration in Client Solutions
We continue to accelerate services penetration in Client Solutions leveraging on our customer portfolio Accelerated & sustainable growth Maximizing value of … scaling up footprint on new services… existing portfolio… 1H20 1H21 Services contracts %(1) +5 p.p. Solar DG 1.7x Cumulative contracted PV, M
Slide 10: We continue to reinforce our assets' portfolio towards the energy transition
We continue to reinforce our assets’ portfolio towards the energy transition: Renewables, Networks & Clients EDP, EDPR & EDP Iberia(1) Performance Main Iberian Assets at EDP Rebased post-Strategic Update (ex-EDPR & EDPB) Hydro Iberia >40% with pumping Value of flexibility & cash generation 5.5 Dec-1
Slide 11: On ESG we have been validated by SBTi on our carbon neutral targets
On ESG we have been validated by SBTi on our carbon neutral targets as we continue to pave the way towards decarbonization ESG excellence and attractive returns Coal Carbon Environment free neutral 81% renewables generation in 1H21 by 2025 by 2030 361 157 -64% CO2 Specific Emissions(1) vs. 2015 131
Slide 12: 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 Key figures and targets 1H21 €24 Bn CAPEX in energy transition(1) €1.6 Bn (94% in RES + Networks) 6.7GW secured (34%) with 3.6 GW 20 GW gross additions(1) added YTD+U/C €8 Bn asset rotation ~€2.2 Bn sign
Slide 13: We will deliver superior value, while keeping a solid balance sheet and low-risk profile
We will deliver superior value, while keeping a solid balance sheet and low-risk profile 2020 2023 2025 CAPEX1, € Bn/yr Step-up investment plan with 3.7 4.5 4.6 +1 Bn 2025 vs. 20 renewables focus EBITDA2, € Bn Increased results with distinctive 3.5 4.2 4.7 +6% CAGR 2020-25 energy transition profile
Slide 14: We will deliver superior value to our shareholders
We will deliver superior value to our shareholders Superior green positioning … delivering strong earnings growth… and accelerated growth… Net income2, € Bn 8% p.a. All green ~1.2 2x by 2030 ~0.8 ~1.0 solar + wind installed capacity by 2025 €24 Bn >95% 20202 2023 2025 energy transition energy transi
Slide 15: We have started this journey in Renewables and are committed to lead the Energy Transition
We have started this journey in Renewables over 2 decades ago and are committed to continue to lead the Energy Transition By 2025 By 2030 €24 Bn >50 GW CAPEX in energy transition renewables additions Leading the energy transition to create superior value 4 GW/yr 100% renewables deployed renewables g
Slide 16: We will deliver unparalleled investment levels fully aligned with the energy transition
We will deliver unparalleled investment levels fully aligned with the energy transition Significant investment … with strong focus on Renewables, across acceleration… key markets in Europe and North America CAPEX1, € Bn/yr CAPEX1, Cumulative, € Bn, 2021-25 +65% ~80% ~40% 4.8 Renewables Europe ~15% ~
Slide 17: We will grow our presence across technologies, with differentiating value propositions
We will grow our presence across technologies, with differentiating value propositions Strong visibility Hydro Global leadership Extensive pipeline with Top 4 global player additions ramping up quickly Differentiation Mostly maintenance investments Solar Cost competitiveness Capture repowering, hybr
Slide 18: We have +6.7 GW capacity additions secured (34%) evenly split per geography
We have +6.7 GW capacity additions secured (34%) evenly split per geography 2.9 2.2 North America Europe GW GW 33% secured 32% secured 1.2 GW 1.6 GW 0.2 GW 6.7 1.3 GW 0.6 GW 0.3 GW post 2025 8.8 20 GW1 Gross 0.3 GW post 2025 Additions 2021-25 1.4 1.7 2.9 APAC 28 LatAm MW GW 2% Secured 58% secured 28
Slide 19: We will strengthen our leadership position in wind onshore
We will strengthen our leadership position in wind onshore Pipeline as of Dec 2020 Target additions 2021-25 (GW) Current presence1 XX % in additions XX Total installed capacity We have a strong onshore presence across the globe … consolidating leadership that will be reinforced… and exploring growth
Slide 20: We will build a sound market presence in Solar
We will build a sound market presence in Solar Pipeline as of Dec 2020 Target additions 2021-25 (GW) Current presence1 XX % in additions XX Total installed capacity We have robust secured additions and strong pipeline in solar… … adopting a differentiated approach to clients Rest of North America2 E
Slide 21: We aim to be a leading global player in offshore wind through the 50:50 JV Ocean Winds
We aim to be a leading global player in offshore wind through the 50:50 JV Ocean Winds (OW) Step-change in capacity with a global footprint… … with results already in place Installed Under construction Under development ✓ PPA/Tariff secured Pursuing greenfield development, Project visibility for 6.6
Slide 22: We will double growth in renewables, adding 4 GW/year with clear visibility
We will double growth in renewables, adding 4 GW/year with clear visibility Step-up growth in renewables… … with a robust pipeline to address target additions Gross additions, GW1/yr Total gross additions, GW1 20 GW 4.6 44 >50 ~3x Pipeline announced as 3.5 of 2019 (16 GW) 44 ~3x 1.6 20 Target additi
Slide 23: Networks - Key highlights
Networks - Key highlights +xx Growth, 2020-25 ~€0.7 Bn annual Regulated Asset Base EBITDA to increase by 50% organic CAPEX to increase by ~€2 Bn EBITDA, € Bn CAPEX1, € Bn RAB2, € Bn 5% p.a. excluding Viesgo acquisition 3.4 40% 7.1 1.3 0.1 8% p.a. 1.0 0.1 1.0 0.3 5.1 1.3 0.9 0.6 0.1 0.8 0.2 2.2 4.8 0
Slide 24: Client Solutions & Energy Management - Key highlights
Client Solutions & Energy Management - Key highlights ~€0.2 Bn annual CAPEX Step-change growth in Solar DG EBITDA to increase by 15% CAPEX, € Bn1 Cumulative contracted PV, GWP3 EBITDA, € Bn 30% p.a. Client Solutions 2% p.a. 0.9 2.2 0.5 0.4 Solar DG and 0.1 X10 e-mobility Solar DG and e-mobility 0.6
Slide 25: Recurring EBITDA -6% YoY (-1% ex-forex)
Recurring EBITDA -6% YoY (-1% ex-forex), US RES penalized by ERCOT event/ load factors & weak EM partially offset by stronger Networks Recurring EBITDA(1,2) €m YoY growth, % -6%YoY (ex-forex -1%) ∆ YoY 1,791 EDPR Installed Capacity +10% YoY (3) 1,678 Wind resources in US -6% vs. LT avg Asset rotatio
Slide 26: Net Debt increase mostly explained by cash capex & working capital optimization
Net Debt increase mostly explained by cash capex & working capital optimization in the context of high financial liquidity Change in Net Debt (1) € Bn +€0.4Bn Reg. Receivables +€0.2Bn FX effect +€1.6Bn Gross Investments -€0.5Bn proceeds AR 1.8 1.8 +€0.9Bn WC on fixed asset suppliers 13.2 0.5 12.2 0.
Slide 27: Net Profit +9% benefitting from improved financial results and lower taxes
Net Profit +9% benefitting from improved financial results and lower taxes and positively impacted by non-recurring items Recurring Net Profit (1) Δ YoY Reported Net Profit €m €m EBITDA 1,678 -113 9% YoY D&A and 343 726 -26 Provisions 315 EBIT 952 -139 Net Financial Costs 254 +57 Income Taxes 164 +8
Slide 28: We reiterate our positive outlook for 2021 YE
We reiterate our positive outlook for 2021 YE as we continue focused on execution and delivering results Guidance 2021YE Highlights Wind & Solar Asset Rotation gains (>€300m) Recurring ~€3.7 Bn EBITDA Ramp-up in Renewables deployment Networks annual tariff updates in Brazil (Aug-21 and Recurring Net
Slide 29: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
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