Slide 1: Investor presentation Q4 and full-year 2020
Investor presentation Q4 and full-year 2020 3 February 2021
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements, including but not limited to, the statements and expectations contained in the “Financial Outlook” section of this presentation. Statements herein, other than statements of historical fact, regarding our future results of oper
Slide 3: Very strong 2020 results, both operationally and financially
Very strong 2020 results, both operationally and financially EBITDA Strong financial results in 2020 Key accomplishments in 2020 DKKbn • EBITDA increased 4 % to DKK 18.1 bn Offshore Offshore new partnerships • EBITDA from offshore and onshore wind • World’s largest renewable CPPA signed with Existin
Slide 4: Strong strategic progress in Q4 2020
Strong strategic progress in Q4 2020 Highlights – Q4 2020 • The first Dutch offshore wind farm Borssele 1 & 2 of 752 MW commissioned • Europe’s largest offshore wind CPPA signed for Borkum Riffgrund 3 • Agreements signed to divest 25 % of the 1,100 MW US Ocean Wind and 50 % of the 605 MW Taiwanese C
Slide 5: Construction programme in Offshore and Onshore
Construction programme in Offshore and Onshore Changhua Permian Project Hornsea 2 Muscle Shoals Western Trail Haystack Old 300 1 & 2a Energy Center Country Asset type 420 MWac Capacity 1,386 MW 900 MW 227 MWac 367 MW 298 MW 430 MWac 40 MWac Expected completion H1 2022 2022 Q2 2021 Q3 2021 Q3 2021 Q4
Slide 6: Offshore auctions and tenders likely to reach ~25 GW in 2021
Offshore auctions and tenders likely to reach ~25 GW in 2021 Award in Q2 2021 H1 2021 H2 2021 H2 2021 H2 2021 2021 H2 2021 / H1 2022 New Jersey 2 Japanese round 1 UK Round 4 Connecticut 4 Maryland 3 German tender Taiwan auction up to 2,400 MW ~1,500 MW Up to 12,000 MW ~1,000 MW ~400 MW 900 MW TBA Aw
Slide 7: Q4 2020 – Strong operational performance
Q4 2020 – Strong operational performance Q4 2020 EBITDA increased DKK 390 m Offshore EBITDA DKK 4,128 m – Up DKK 80 m DKKm • Earnings from operating wind farms increased 7 % driven by ramp-up from Hornsea 1 and Borssele 1 & 2 Q4 2019 4,613 • Adverse COVID-19 related impacts especially on the UK powe
Slide 8: Q4 2020 – Financial performance in line with expectations
Q4 2020 – Financial performance in line with expectations CFO Net profit Free cash flow CAPEX Net interest-bearing debt development DKKm DKKm Divestments DKKm 2,174 4,816 6,756 402 925 -8,816 -8,639 -8,216 138 40 -1,519 -3,402 -208 -3,598 -695 -12,343 -3,402 30 Sep Free cash Hybrid Lease Exchange Ot
Slide 9: Q4 2020 – Financial and non-financial ratios
Q4 2020 – Financial and non-financial ratios FFO / Adj. net debt ROCE Greenhouse gas emissions Safety % % (scopes 1 & 2), g CO2e/kWh, YTD Total recordable injury rate, YTD 48 65 4.9 58 3.6 31 11 10 31 Dec 2019 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 31 Dec 2020 FFO /
Slide 10: Outlook – Guidance for 2021
Outlook – Guidance for 2021 2021 EBITDA excl. new partnerships expected to be DKK 15-16 bn Guidance on 2021 EBITDA excl. new partnerships DKKbn Effects impacting comparability 18.1 • In 2021, EBITDA from existing partnerships is expected to be close to zero 15-16 -0.9 15.6 1.1 (DKK 1.6 bn in 2020) -
Slide 11: Outlook – Directional business unit EBITDA FY 2021 vs. FY 2020
Outlook – Directional business unit EBITDA FY 2021 vs. FY 2020 Offshore – Lower Onshore – Higher Markets & Bioenergy – Lower • Earnings from wind farms in operation • Earnings from onshore wind and solar farms • Our directional guidance is excluding the expected to increase driven by the last 400 in
Slide 12: 2021 guidance and long-term financial estimates and policies
2021 guidance and long-term financial estimates and policies 2021 guidance DKKbn Financial estimates EBITDA without new partnerships 15-16 Total capex spend, 2019-2025 DKK 200 bn Gross investments 32-34 Capex allocation split, 2019-2025: - Offshore 75-85 % Business unit EBITDA FY 2021 vs. FY 2020 Di
Slide 13: Ørsted Capital Markets Day Save the date
Ørsted Capital Markets Day Save the date 2 June 2021
Slide 14: Q&A
Q&A Conference call DK: +45 7815 0110 UK: +44 333 300 9270 US: +1 833 249 8407 For questions, please press 01
Slide 15: Appendix
Appendix Orsted
Slide 16: Renewable capacity as of 31 December 2020
Renewable capacity as of 31 December 2020 Indicator Unit FY 2020 FY 2019 Installed renewable capacity Installed renewable capacity MW 11,300 9,870 The installed renewable capacity is calculated as - Offshore wind power MW 7,572 6,820 the cumulative renewable gross capacity installed by Ørsted before
Slide 17: Forecasted renewable capacity build-out
Forecasted renewable capacity build-out Global renewable energy capacity by Global offshore wind capacity, excl. North American renewable capacity by technology1 mainland China technology2 GW installed GW installed GW installed CAGR 2 % biomass North America Biomass 19 % Offshore wind +10 %/year Asi
Slide 18: Offshore wind build-out plan
Offshore wind build-out plan Installed capacity 920 14,854 MW 1,142 1,220 Under construction 1,714 Awarded 900 9,858 1,386 7,572 Installed Hornsea 2 Greater Decided (FID’ed) US North- US Mid-Atlantic German Greater Decided (FID’ed), capacity Changhua and installed East cluster1 cluster2 Portfolio3 C
Slide 19: Offshore market development – US
Offshore market development – US • Target of 3.2 GW of offshore wind capacity by 2030 target Massachusetts • Next solicitation of 1.6 GW expected in H2 2021 • Target of 2GW of offshore wind capacity by 2030, of which 1.2 GW remains available Connecticut • Next auction of approx. 1 GW expected in H2
Slide 20: Offshore market development – UK and Continental Europe
Offshore market development – UK and Continental Europe • UK Government target annual build-out of 3 GW to reach 40 GW capacity by 2030 • Development consent granted on 31 December 2020 for Hornsea 3 for at least 2.4 GW United • Leasing round auction for 7-8.5 GW of new capacity in England and Wales
Slide 21: Offshore market development – APAC
Offshore market development – APAC • Taiwan has met its target of awarding 5.5 GW to be commissioned by 2025 • An additional 10 GW offshore wind to be constructed between 2026-2035 Taiwan • Third round auction rules still to be announced • 600 MW Greater Changhua 3 project ready for future auctions
Slide 22: Overview of US offshore wind federal permitting process
Overview of US offshore wind federal permitting process Planning & Analysis Leasing Site Assessment Construction & Operations BOEM1 conducts a BOEM conducts BOEM grants developer Submit COP for NOI Construction and Operations Plan (COP) process of area auctions and up to five years (not all identifi
Slide 23: Onshore build-out plan
Onshore build-out plan ~5,000 Installed capacity MW Under construction 430 3,400 298 367 227 420 1,658 Installed Permian Muscle Shoals Western Trail Haystack Old 300 Decided 2025 capacity Energy Center1 (FID’ed) and ambition Q4 2020 installed ERCOT, SERC, ERCOT, SPP, ERCOT, capacity Region TX AL TX
Slide 24: Sustainability and ESG at Ørsted
Sustainability and ESG at Ørsted Green leadership Contributing to the global goals ESG ratings of Ørsted • In 2020, 90 % of our energy generation was green. We Rating agency Score Benchmark target 99 % green energy generation by 2025. Ørsted is an active and LEAD participant of the UN Global Compact
Slide 25: Group – Financial highlights
Group – Financial highlights FINANCIAL HIGHLIGHTS Q4 2020 Q4 2019 D FY 2020 FY 2019 D EBITDA DKKm 5,003 4,613 8% 18,124 17,484 4% • Offshore 4,128 4,048 2% 14,750 15,161 (3 %) • Onshore 324 165 96 % 1,131 786 44 % • Markets & Bioenergy 643 490 31 % 2,136 1,495 43 % Net profit – continuing operations
Slide 26: Offshore – Financial highlights
Offshore – Financial highlights FINANCIAL HIGHLIGHTS Q4 2020 Q4 2019 D FY 2020 FY 2019 D Wind speed (m/s), offshore wind farms EBITDA DKKm 4,128 4,048 2% 14,750 15,161 (3 %) • Sites incl. O&Ms and PPAs 4,950 4,626 7% 15,476 13,750 13 % • Construction agreements and divestment gains (149) 51 n.a. 1,5
Slide 27: Onshore – Financial highlights
Onshore – Financial highlights FINANCIAL HIGHLIGHTS Q4 2020 Q4 2019 D FY 2020 FY 2019 D Wind speed (m/s), onshore wind farms EBITDA DKKm 324 165 96 % 1,131 786 44 % • Sites 99 73 36 % 451 466 (3 %) • Production tax credits and tax attributes 314 201 56 % 1,004 628 60 % • Other, incl. project develop
Slide 28: Markets & Bioenergy – Financial highlights
Markets & Bioenergy – Financial highlights FINANCIAL HIGHLIGHTS Q4 2020 Q4 2019 D FY 2020 FY 2019 D EBITDA DKKm 643 490 31 % 2,136 1,495 43 % • CHP plants 346 354 (2 %) 1,111 1,152 (4 %) • Gas Markets & Infrastructure 389 620 (37 %) 411 390 5% • LNG 0 (691) n.a. 0 (957) n.a. • Distribution, B2C, and
Slide 29: Currency and energy exposure
Currency and energy exposure Currency exposure, GBP and NTD 2021-2025, USD 2021-2036 Energy exposure Q1 2021 – Q4 2025 DKKbn DKKbn Before hedging Before hedging After hedging After hedging 60.2 23.9 19.1 19.5 12.8 8.2 5.8 4.8 0.3 0.2 -1.8 -0.2 GBP1 USD2 TWD Power Gas Oil Risk after hedging, Effect o
Slide 30: Natural hedges significantly reduce Taiwan Dollar risk
Natural hedges significantly reduce Taiwan Dollar risk Cash flows from Greater Changhua 1 & 2a Illustrative Risk mitigation Illustrative CAPEX Revenue less OPEX Potential farm-downs 2020 2021 2022 2023 2024 2025 2026 2027+ 2020 2021 2022 2023 2024 2025 2026 2027+ TWD USD, EUR or DKK TWD TWD funding
Slide 31: Capital employed
Capital employed Capital employed, DKKm FY 2020 FY 2019 Capital employed by segment Intangible assets and property and equipment 122,249 106,685 %, FY 2020 Equity Investments and non-current receivables 1,928 1,044 Offshore Net working capital, work in progress 9,775 8,756 Onshore Net working capita
Slide 32: FFO/Adjusted net debt calculation
FFO/Adjusted net debt calculation Funds from operations (FFO), DKKm FY 2020 FY 2019 EBITDA – Business Performance 18,124 17,484 Interest expenses, net (1,202) (1,312) Interest expenses, leasing (177) (171) Reversal of interest expenses transferred to assets (449) (344) Interest element of decommissi
Slide 33: Debt overview
Debt overview Gross debt and hybrids Effective funding costs – gross debt (excl. hybrid) Long-term gross debt maturity schedule 31 December 2021 31 December 2020 31 December 2021 Cost of Modified Avg. time to maturity debt (%) duration (%) (years) Bond loans 2.9 8.7 10.2 DKKbn Bank loans 0.9 0.5 3.6
Slide 34: Hybrid capital in short
Hybrid capital in short Hybrid capital can broadly be defined as funding Due to hybrid’s equity-like features, rating Accounting treatment instruments that combine features of debt and agencies assign equity content to the hybrids when • Hybrid bonds are classified as equity equity in a cost-efficie
Slide 35: Ørsted's outstanding Bonds
Ørsted’s outstanding Bonds Ørsted A/S Remaining *Green Allocated to green Avoided emissions (t CO2/year) Bond Type Issue date Maturity Face Value Coupon Coupon payments amount bond projects (DKKm) attributable to the bonds Senior Unsecured Dec. 2009 16 Dec. 2021 EUR 500m EUR 272m 4.875% Every 16 Dec
Slide 36: Financing strategy
Financing strategy At Ørsted, we have a centralised financing The financing strategy optimizes the strategy utilizing our strong balance sheet effect of a fully integrated cash pool and diverse portfolio. where cash at practically all of the The strategy supports: company’s more than 200 subsidiarie
Slide 37: Currency risk management
Currency risk management General hedging principles • The main principle is to hedge highly certain cash flows • Cost-of-hedging is minimized by netting of exposures, use of local currency in construction contracts and debt in local currency. Managing outright long risk (GBP) • Operations: minimum 5
Slide 38: Interest rate and inflation risk management
Interest rate and inflation risk management Four risk categories of assets and debt allocation Objectives of interest rate and inflation risk management Illustrative 1. Protect long-term real value of equity by offsetting interest and inflation risk exposure embedded in assets by allocating debt wit
Slide 39: Energy risk management
Energy risk management Risk picture Hedging of open exposure • We manage market risks to protect Ørsted against market price volatility and • Open energy exposure is reduced actively ensure stable and robust financial ratios that support our growth strategy • Minimum hedging requirements are determi
Slide 40: Investor Relations contacts
Allan Bødskov Andersen Rasmus Hærvig Head of Investor Relations Manager alban@orsted.com rakol@orsted.com Sabine Lohse Alex Morgan Henriette Stenderup Senior Investor Relations Officer Lead Investor Relations Officer IR Coordinator sablo@orsted.com alxmo@orsted.com hnste@orsted.com