Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Presentation (March 2024)
31 slides from Edp's investor presentation, March 2024
Slide 1: Investors' Presentation March 2024
INVESTORS’ PRESENTATION March 2024
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") solely Forward-looking statements include statements regarding: objectives, goals, strategies, for use at the presentation to be made on this date and its purpose is merely of informative outlook and growt
Slide 3: Energy transition is ever more pressing to address climate change
Energy transition is ever more pressing Governments are stepping with to address climate change… unprecedent strategic commitments Inflation Reduction Act Breaking Hawaiian deadliest US > $400bn in climate spending to reduce emissions >40% by 2030 temperature records wildfires in over a century Expa
Slide 4: We are a global company, leader in the energy sector, present in 4 regional hubs
We are a global company, leader in the energy sector, present in 4 regional hubs throughout different stages of the value chain % Weight on EBITDA 2023 Renewables, Clients & EM North America Europe APAC ~70% Wind Solar Solar Energy onshore utility-scale DG management Wind Hydro Storage H2 Client off
Slide 5: Business Strategy
@edp Business Strategy
Slide 6: Our investment plan is focused on the energy transition, with a strong focus on renewables
Our investment plan is focused on the energy transition, with a strong focus on renewables and core low-risk markets Reinforcing our investment in the energy transition, across core low risk markets Gross Investments1 2023-26 (€ Bn) ~15% ~40% 34% 34% ~40% ~€25 Bn ~€25 Bn ~€25 Bn ~4% ~3% ~10% ~85% >5
Slide 7: Accelerated and sustainable growth: asset rotation strategy
Accelerated and sustainable growth We will deploy our distinctive asset rotation strategy to crystalize value and fund additional growth opportunities ~€7 Bn AR proceeds and capital gains ~€20 Bn 4.5 GW/yr EV1 rotated track record since 2012 Upfront value crystallization ~30% Build to Sell Growth ac
Slide 8: Strong asset rotation execution in 2023 and positive outlook for 2024
Strong asset rotation execution in 2023 with €460m gains and positive outlook for 2024, with 2 transactions closed in 1Q24 and other pending closing 3 AR deals closed in 2023 – Key metrics Outlook for 2024 Closed GW 1.0 0.7 ~1.2 Sale of 80% stake in 340 MWac portfolio, $0.4 Bn EV Proceeds1 (€ Bn) 1.
Slide 9: EDPR 2024 additions clearly identified and ~100% secured
EDPR 2024 additions clearly identified and ~100%, secured supporting renewables generation ramp up over 2024 4 GW on track for 2024, with 85% already under Attractive long-term revenues secured in 2022- construction and 100% secured 2023 for 10 GW EDPR Capacity Additions, GW EDPR secured capacity 20
Slide 10: Flexible hydro generation fleet sustains hydro realized price premium
Flexible hydro generation fleet with 45% of pump. & storage and 75% with reservoir support sustained hydro realized price premium vs. baseload Higher renewables penetration enhancing intraday EDP well positioned to benefit from higher volatility spreads in intraday prices Avg. hourly price and renew
Slide 11: Regulated networks in EDP's portfolio: 30% weight on EBITDA and Net Profit
Regulated networks in EDP’s portfolio: 30% weight on EBITDA and Net Profit, RAB net of minorities +29% following EDP Brasil minorities buyout Networks portfolio with a significant weight in Positive developments on networks outlook for 2024 EBITDA, reflecting the growth in our asset base EDP São Pau
Slide 12: Acquisitions of minority interests at EDP Brasil and wind portfolio in Europe
Acquisitions of minority interests at EDP Brasil and wind portfolio in Europe to support 2024-2026 earnings outlook Minority buyouts executed in 2023 increasing Decrease of minorities at P&L enhancing EDP’s net exposure to earnings enhancing businesses income from 2023 onwards Net Income annual cont
Slide 13: High financial liquidity at >€10 Bn covers refinancing needs until 2027
High financial liquidity at >€10 Bn, supported by >€7bn of available credit lines, covers refinancing needs until 2027 Financial liquidity EDP consolidated debt maturity profile1 as of Dec-23, €Bn as of Dec-23, €Bn Cash & Equivalents 3.4 EDP Brasil EDP SA & EDP Finance BV and Other (% of total debt)
Slide 14: Superior value through sustained EPS growth and a solid dividend policy
We are delivering superior value through sustained EPS growth and a solid dividend policy with an increased floor Attractive dividend policy Dividend per share (€) From… To… Dividend yield Payout DPS floor €0.19 €0.19 in 2023 5.0% 6.8% 7.7% 8.1% 6.9% 5.7% 5.6% 6.6% 6.6% 6.2% 4.9% 3.7% 4.1% 4.1% 4.3%
Slide 15: Decarbonize: For a climate-positive world
Decarbonize: For a climate-positive world -28% 0.160 Coal free by 2025 Scope 1 + 21 (tCO2e/MWh) 0.157 +2% (vs. 2020) -77% (vs. 2020) -95% -96% All green by 2030 (vs. 2020) 0.112 0.036 (vs. 2020) (vs. 2020) 0.008 0.006 Net Zero by 2040 -45% Reinforce efforts for the (vs. 2020) -90% decarbonization pa
Slide 16: Stepping up green leadership position: key ESG metrics improving in 2023
Stepping up green leadership position: Key ESG metrics improving in 2023 and on track to be coal free by 2025 Emissions & EU Taxonomy metrics Progressing in our commitments, while being recognized by ESG performance 96.4% (+0.4 p.p. YoY) CAPEX aligned with EU Taxonomy #1 integrated electric utility
Slide 17: YE23 Results
YE23 Results @edp
Slide 18: Recurring EBITDA +11% YoY including ~€0.5Bn of AR gains
Recurring EBITDA +11% YoY reflecting the growth of integrated margin and including~€0.5Bn of AR Gains Recurring EBITDA1 ,€m YoY growth, % ∆ YoY +11% • Normalization of hydro resources in Portugal vs. very weak 2022 5,023 • Lower electricity and gas sourcing costs 4,522 • Unitary integrated margin +2
Slide 19: Generation & supply integrated EBITDA rebound on hydro and sourcing conditions
Generation & supply integrated EBITDA rebound, on the back of hydro and sourcing conditions recovery vs. extremely adverse context in 2022 Hydro, Clients & EM Recurring EBITDA €m YoY growth, % Iberia 2022 2023 YoY 2x ∆ YoY 1,699 Hydro coefficient in Portugal, avg.=1 0.63 0.99 +57% Hydro Generation,
Slide 20: Wind & Solar EBITDA decreasing YoY with AR gains mitigating weaker wind
Wind & Solar EBITDA decreasing YoY with ~€0.5Bn AR gains mitigating weaker wind resources and selling prices and lower contribution from OW Wind & Solar Recurring EBITDA €m YoY growth, % ∆ YoY 2022 2023 YoY -14% Installed Capacity1, GW 14.7 16.6 +12% 2,157 1,845 Prod. deviation vs. exp. LT Gross -2%
Slide 21: Electricity Networks representing 30% of total EBITDA, roughly stable YoY
Electricity Networks representing 30% of total EBITDA, roughly stable YoY Electricity Networks Recurring EBITDA €m YoY growth, % Iberia 2022 2023 YoY 0% ∆ YoY Return on RAB Portugal , % 5.05% 5.57% +53 bps 1,504 1,501 Return on RAB Spain, % 5.58% 5.58% 0 bps Portugal 533 532 -2m OPEX/ Supply Point I
Slide 22: Net financial costs flat YoY
Net financial costs flat YoY: cost of debt increase mitigated by higher capitalized interest due to higher volumes of construction activities Net Financial Costs Avg. nominal debt by currency €m EDP excl Brazil Brazil 0% -2% EUR 48 % 52 % 910 39 55 910 871 855 -16 USD 36 % 28 % BRL Of which 4% 14 %
Slide 23: Improvement of credit ratios: Net Debt/EBITDA at 3.3x
Improvement of credit ratios: Net Debt/EBITDA at 3.3x and FFO/Net Debt at 21% reflecting the capital structure reinforcement with €2 Bn capital increases Change in Net Debt € Bn 0.8 2.0 15.3 Organic cash-flow = €1.1 Bn 0.0 4.0 1.0 14.3 13.2 RR 1.9 0.4 0.8 Regulatory working capital including ~€2.0 B
Slide 24: Recurring net Profit of €1.3 Bn on strong integrated business rebound
Recurring net Profit of €1.3 Bn, on the back of a strong integrated business rebound, and supported by lower minorities in Brazil since 3Q23 Recurring Net Profit1 Recurring Net Profit €m Δ YoY €m +48% 1,290 EBITDA 5,023 +501 871 D&A and Provisions 1,745 -87 EBIT 3,278 +414 Net Financial Costs 903 7
Slide 25: 2023 with key milestones for our strategy
Strengthening of balance sheet with €2 Bn equity raises of EDP and EDPR 2023 with key Successful buyouts of minorities (EDP Brasil, wind Europe): earnings enhancing and milestones for reinforced weight of regulated networks and LT contracted renewables our strategy announced at €2.0 Bn asset rotatio
Slide 26: On track to deliver 2024 guidance
On track to deliver 2024 guidance 2024 Guidance Strong Regulated EDP Brasil integrated Electricity minorities’ business ~€1.3 Bn performance Networks buyout resilience Net Profit recurring Portfolio optimization, Networks contributing 100% earnings high reservoir levels, 30% to EBITDA, acting as con
Slide 27: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Investor presentation 27
Slide 28: EDP in Europe: integrated presence throughout the value chain
EDP in Europe: integrated presence, operating throughout the value chain of the electricity sector 2023 8435 5.3m employees clients 5.4 GW 6.2GW1 0.6 GW installed capacity 0.2 GW 5.5GW1 installed capacity 288k Km 1. Net equity + EBITDA MW as ofInvestors’ 2023. Includes solar DG from28 Presentation C
Slide 29: EDP in NA: presence grew significantly over the past decade
EDP in NA: Presence grew significantly over the past decade, with EDPR being one of the largest 2023 wind and solar operators in that market 1073 employees 7.1 GW 1 8.4GW 1.1 GW installed capacity 0.2 GW Top 5 US wind operator 1. Net equity + EBITDA MW as of 2023 Investors’ Presentation 29
Slide 30: EDP activity in Latam focused on Brazil
EDP activity in Latam focused on Brazil, where the company acts across all stages of the value chain 2023 3133 3.9m employees clients 0.8 GW 1.3GW1 0.4 GW installed capacity 0.1 GW 2.0GW1 installed capacity 2.2k Km 97.0k Km 1. Net equity + EBITDA MW as ofInvestors’ 2023. Includes solar DG from30 Pre
Slide 31: EDP in Asia Pacific with pan-regional presence
EDP in Asia Pacific with pan-regional presence and focused accelerated renewables growth with 2023 Singapore as hub 400 employees 1 0.4 GW 0.9GW 0.5 GW installed capacity >2700 Buildings in Singapore 1. Net equity + EBITDA MW as of 2023 Investors’ Presentation 31
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