Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — H1 2023 Earnings Presentation
26 slides from Edp's earnings presentation, Jul 28, 2023
Slide 1: 1H23 Results Presentation
@edp 1H23 Results Presentation | Lisbon,July28" Lote 1 Acre Transmission
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: 1H23 performance marked by recovery of integrated margin in Iberia
1H23 performance marked by the recovery of integrated margin in Iberia on normalization of hydro conditions and lower electricity & gas sourcing costs 1H23 Main Highlights Financial Performance Recurring figures Recovery of integrated margin in Iberia, following decline in electricity & gas sourcing
Slide 4: Successful buyout of EDP Brasil minorities under a positive sector and macro context
Successful buyout of EDP Brasil minorities under a positive sector and macro context Delisting Tender Offer on EDP Brasil Positive sector and macro developments in Brazil Renewal of electricity distribution concessions Tender offer price Premium vs. previous day Released proposal (public hearing sta
Slide 5: EDP Brasil minorities acquisition contributing to earnings growth
EDP Brasil minorities acquisition contributing to earnings growth, reinforcing the alignment of the portfolio with the global energy transition EDP Brasil earnings 100% consolidated in 2H23 Strategy in Brazil fully aligned with the energy transition Net profit enhancement from EDP Brasil minorities
Slide 6: Integrated generation and supply Iberia: 85% of gross margin locked-in for 2023
Integrated generation and supply Iberia: 85% of gross margin locked-in for 2023, positive prospects for 2024 supported by clients and hedging Recovery in 2023 vs. extremely weak 2022 Strong position in clients and well-advanced hedging EDP generation and supply volumes positions support positive pro
Slide 7: EDPR growth execution on track with 60% of capacity secured
EDPR growth execution on track with 60% of the total capacity secured already installed and under construction 52% of target additions secured of which 60% is installed or U/C EDPR capacity additions 2023 capacity additions of c.3 GW concentrated in the (GW) 52% end of the year of the 17 GW capacity
Slide 8: Asset rotation execution strong with >€1.5Bn of expected proceeds in 2023
Asset rotation execution strong with >€1.5Bn of expected proceeds in 2023 at attractive multiples Asset Rotations signed in July 2023 vs. our previous transactions in Spain & Poland Other asset rotation transactions well on track in EU, EV/Operational MW, €m LatAm and North America 2.4 Upgrade of as
Slide 9: Accelerating our leading global Solar DG business
Accelerating our leading global Solar DG business, with EBITDA expected to triple over 2023-26 Scaling solar DG business, as announced in CMD Solar DG EBITDA strong growth over 2023-26 EDP Solar DG EBITDA growth 2023-26, €bn Deployed 53 1,575 ~75% capacity MWp +30x MWp EU, US and Singapore 2019 1H23
Slide 10: RR temporary increase corrected by tariffs update; securitization in 2H23
RR temporary increase from lower-than-expected electricity prices in 1H23 corrected by tariffs update since July 1st; securitization of pending stock in 2H23 Regulatory Receivables in balance sheet (€m) Deficit Securitizations (€Bn) 1.1 1.4 0.6 0.6 0 To be securitized RR in Portugal increased from l
Slide 11: Decarbonization supported by growth in renewables and fast decline of thermal
Decarbonization supported by growth in renewables including innovative solutions, electricity networks investments and fast decline of thermal generation Key emissions & EU Taxonomy metrics Recent achievements 87% (+10 p.p. YoY) Alqueva floating solar distinguished in the Renewables in Total Generat
Slide 12: Financial Performance
@edp FINANCIAL PERFORMANCE ei Lote 1 Acre Transmission
Slide 13: Recurring EBITDA +24% YoY prompted by hydro recovery and lower sourcing costs
Recurring EBITDA +24% YoY prompt by a recovery on hydro conditions and lower electricity and gas sourcing costs Recurring EBITDA1 ,€m YoY growth, % ∆ YoY +24% 2,464 • Recovery of hydro in Portugal vs. a very weak 1H22 1,994 • Lower electricity and gas sourcing costs +€687m Hydro, +476m Clients and E
Slide 14: Recovery of hydro generation after a very weak 1H22
Recovery of hydro generation after a very weak 1H22; hydro reservoirs above average, presenting good prospects for the next months Recovery of hydro generation in 2023 Hydro reservoir levels still above average Reservoir levels in Portugal (%) Iberia Avg. Elect. Spot Price (€/MWh) 206 88 100 Hydro c
Slide 15: Recovery of generation & supply integrated EBITDA supported by hydro
Recovery of generation & supply integrated EBITDA supported by hydro generation, contrasting with an extremely adverse context in 1H22 Hydro, Clients & EM Recurring EBITDA €m YoY growth, % Iberia 1H22 1H23 YoY +3 x ∆ YoY 977 Hydro Generation, TWh 2.8 4.7 +68% Thermal Generation, TWh 7.3 3.8 -48% +69
Slide 16: Wind & Solar EBITDA -22% YoY from lower wind resources
Wind & Solar EBITDA -22% YoY from lower wind resources, timing of AR and retroactive change (non-cash) of regulated revenues in Spain in 2Q23 Wind & Solar Recurring EBITDA1 €m YoY growth, % ∆ YoY 1H22 1H23 YoY -22% 976 Installed Capacity2, GW 13.7 15.2 +10% AR Gains 99 764 Prod. deviation vs. exp. L
Slide 17: Electricity Networks EBITDA flat YoY supported by Brazil transmission expansion
Electricity Networks EBITDA flat YoY supported by transmission expansion in Brazil and RoRAB indexation to Yields in Portugal, offset by cost inflation in Iberia Electricity Networks Recurring EBITDA €m YoY growth, % Iberia 1H22 1H23 YoY -1% ∆ YoY Return on RAB Portugal , % 4.94% 5.56% +62 bps 732 7
Slide 18: Cost of debt increase YoY prompted by US interest environment
Cost of debt increase YoY prompted by US interest environment, but stable QoQ at 3.1% excl Brazilian real; 1H22 Financial costs benefited by forex MtM Net Financial Costs Cost of Debt1 Brazil EDP excl Brazil €m €m 2.7% 3.1% -4% 434 418 416 Avg. Cost 385 49 2 of Debt -16 Excl. Brazil 51% 52% 4.5% 4.8
Slide 19: >€10 Bn financial liquidity covering refinancing needs beyond 2026
>€10 Bn financial liquidity covering refinancing needs beyond 2026; Successful execution of EUR pre-hedging in Jun-23 Financial liquidity New RCF Avg. nominal debt by Debt by interest as of Jun-23, €Bn signed currency rate type today as of Jun-23, % Cash & Equivalents 3.1 BRL Available Credit Lines
Slide 20: Sound financial profile with 3.2x Net Debt/EBITDA
Sound financial profile with 3.2x Net Debt/EBITDA, reinforcing recent rating upgrade; Temporary regulatory WC penalizing net debt evolution Change in Net Debt € Bn 0.8 2.0 2.0 15.3 Organic cash-flow = €0.4Bn 0.0 13.2 1.6 0.7 0.3 Net Debt Recurring Net Dividends EDP & EDPR FX and Net Debt Regulatory
Slide 21: Net Profit of €517m, a strong increase YoY
Net Profit of €517m, a strong increase YoY after a very weak 1H22; EBIT growth partially mitigated by higher effective tax rate Recurring Net Profit1 Recurring Net Profit €m Δ YoY €m 517 EBITDA 2,464 +470 301 D&A and Provisions 860 -53 EBIT 1,604 +417 Higher EBT in Iberia and Brazil (with corporate
Slide 22: 1H23 Closing Remarks
@edp 1H23 CLOSING REMARKS sai Lote 1 Acre Transmission
Slide 23: Confident for remaining 2023 with guidance in line with strategic plan
Confident for the remaining 2023 with financial guidance in line with strategic plan targets 2023 Guidance ~€5.0 Bn EB ITDA recurring Integrated Strong asset portfolio and rotation EDP Brasil networks execution ~€1.1 Bn resilience Net Profit recurring Portfolio optimization On track to deliver Posit
Slide 24: Closing Remarks
Closing Remarks Sound results in 1H23 supported by hydro and supply conditions normalization in Iberia, mitigating weaker wind resources and regulatory impacts at EDPR level. Successful tender offer over EDP Brasil minorities, able to achieve a 95% stake. Strong earnings contribution from EDP Brasil
Slide 25: @edp
@edp Brazil
Slide 26: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
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