Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Q1 2024 Earnings Presentation
33 slides from Edp's earnings presentation, May 10, 2024
Slide 1: 1Q24 Results Presentation, Lisbon, May 10
= “Lisbon, May 10" — : S === : Seeder
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: 1Q24 Main Highlights
Net Profit +20% YoY growth to €368m in 1Q24, fully aligned with 2024 full year guidance of ~€1.3 Bn… 1Q24 Main Highlights Financial Performance Recurring figures Renewables weight on total generation output at 97% in 1Q24 1Q24 Strong hydro volumes partially offset by lower market prices, due to abun
Slide 4: Diversified portfolio across networks, integrated generation and supply, and renewables
…as result of a diversified portfolio, balanced between electricity networks, integrated Generation and Supply and Renewables Breakdown of expected Net Profit in 2024 ~35% (~€1.3 Bn) Electricity Networks Regulated Asset Base growth Regulated returns incentivizing investments ~40% Integrated Generati
Slide 5: Flexible hydro assets to capture value from intra-day price volatility
Our flexible hydro generation assets to capture value in a context of increased intra-day price volatility in Iberia… EDP hydro portfolio in Iberia Intra-day price volatility steadily increasing Prices dispersion over average daily hour in 1Q1 5.5 GW 8 TWh 200% 1Q15 1Q20 1Q23 1Q24 Installed capacity
Slide 6: Strong clients' portfolio supporting integrated margin
…with a strong clients’ portfolio supporting integrated margin in a context of rapidly changing wholesale prices Resilient customer franchise in our liberalized portfolio in Iberia… Growing DG business worldwide EDP client solutions liberalized portfolio in Iberia 1.2 GWac1 installed capacity 0.8 GW
Slide 7: Electricity networks portfolio representing 30% of EBITDA
Electricity networks portfolio representing 30% in EBITDA with growth providing stable and low risk cashflow… EDP has significantly invested in regulated … reinforcing weight in EDP’s portfolio electricity networks over the last years… +18% +2% 2020-23 CAGR 2023-26 CAGR Networks 21 % EBITDA 0.9 1.5
Slide 8: Prospects for improved regulatory frameworks in Iberia from 2026
…with good prospects for improved regulatory frameworks in Iberia from 2026 onwards… Iberian market with a strong rational for higher EDP with a strong asset base in Iberia investment in electricity networks RAB 1Q24 RoRAB 2024 Next regulatory period €3.0 Bn 5.5% 2026-30 Strong renewable energy pote
Slide 9: Investment opportunities in Brazil in transmission and distribution
…and significant investment opportunities in Brazil both in Transmission as well as in Distribution Growing distribution asset base in Brazil… Expanding transmission portfolio EDP São Paulo & EDP Espírito Santo RAB net of non-controlling interests, Transmission asset base, net of non-controlling int
Slide 10: Wind & Solar portfolio diversified and mostly long-term contracted
EDP Wind & Solar portfolio well diversified primarily across Europe & NA and mostly LT contracted, expected to continue to grow in 2024-26 Diversified portfolio of Wind & Solar and a solid … with growth expected to persist in 2024-26 generation profile… EDP Wind & Solar Portfolio figures as of 1Q24
Slide 11: 1Q24 Financial Results
1Q24 Financial Results
Slide 12: Generation & Supply in Iberia: normalization of integrated margin
Generation & Supply in Iberia in 1Q24 marked by the normalization of integrated margin, with strong hydro volumes offset by lower electricity prices Strong hydro volumes in 1Q24 mitigating Integrated EBITDA reflecting normalized integrated persistently lower prices in 1Q24 vs. previous year margin i
Slide 13: Recurring EBITDA of €1,342m, -5% YoY
Recurring EBITDA of €1,342m, -5% YoY, following the normalization of Iberian integrated margin and with an increased contribution from Networks Recurring EBITDA1 ,€m YoY growth, % ∆ YoY -5% 1,415 • Integrated business in Iberia YoY 1,342 comparison reflecting the normalization of integrated margin -
Slide 14: Net financial costs -14% YoY
Net financial costs -14% YoY impacted by lower avg. cost of debt; Lower weight of USD debt in 1Q24, in line with strategy to rebalance debt currency mix Recurring Net Financial Costs1 Avg. nominal debt by currency €m % -14 % 255 219 Decline in USD debt and higher weight of EUR debt as part of the st
Slide 15: Net debt increase driven by net expansion investments
Net debt increase driven by net expansion investments and negatively impacted by regulatory working capital Change in Net Debt € Bn 15.9 0.04 15.3 0.7 0.4 0.2 Net Debt Dec-23 Organic CF Regulatory Net Expansion FX and Other Net Debt 1Q24 Receivables Investments Net Debt/EBITDA(1) 3.3x 3.5x FFO/Net D
Slide 16: Net Profit of €368m, +20% YoY
Net Profit of €368m, +20% YoY with lower minorities in Brazil post minorities-buyout Recurring Net Profit1 Recurring Net Profit €m €m Δ YoY +20% 368 EBITDA 1,342 -73 306 D&A and Provisions 429 -3 EBIT 913 -76 Net Financial Costs 219 36 1Q23 1Q24 +135m YoY Income Taxes(2) 212 66 Below EBITDA Non-recu
Slide 17: 2026 Update
2026 Update
Slide 18: Downward trend in forward prices forces revision of price assumptions
Downward trend in electricity forward prices in Europe since CMD forces a revision of our energy price assumptions for 2024-26… Decline in gas prices implying downward trend in Updated visibility on hedging position and electricity prices for 2026 in Iberia average selling prices for 2024-26 2026 fo
Slide 19: Focus on capital optimization and balance sheet robustness
…leading to a focus on capital optimization and robustness of the balance sheet… Deceleration of investments in 2024-261 : focus on Pursuing asset rotation strategy, targeting €7 billion top projects via a selective and disciplined criteria proceeds in 2024-2026 Gross investments 2024-261, € Bn Net
Slide 20: Fully funded plan through 2026 with BBB debt ratios
… supporting a fully funded plan through 2026 with BBB debt ratios 2024-26 Organic Sources and Uses of Funds (€ Bn) Uses of cash Sources of cash Solid credit ratios, on the back of prudent investment policy and sound organic cashflow DPS floor Dividends 2.5 2024E: €0.195 2025E: €0.195 Organic FFO/Ne
Slide 21: Streamlining the organization to accelerate execution
We are streamlining the organization to accelerate execution and extract further synergies from operations… New corporate structure to maximize value Efficiency measures in place allowing EDP to extraction from our businesses’ portfolio stabilize OPEX levels in 2024-26 EDP Group new operational mode
Slide 22: Supporting 2026 updated guidance
…supporting 2026 updated guidance under current market conditions 4.5 ~5.0-5.1 ~3% EBITDA CAGR 2022-26 Continuing our growth path following a €Bn selective and disciplined investment criteria ~1.2-1.3 Net income 0.9 ~10% Portfolio diversification by market and €Bn CAGR 2022-26 business, with high we
Slide 23: Closing remarks
Closing remarks
Slide 24: Closing remarks on 1Q24 results and 2026 guidance update
Closing remarks on 1Q24 results and 2026 guidance update Solid 1Q24 results, with +20% net income growth YoY supported by: strong hydro volumes, stable EDPR performance and resilient regulated networks performance and enhanced by EDP Brasil minorities buyout at the bottom line. EDP with a diversifie
Slide 25: Q&A
Q&A @edp
Slide 26: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
Slide 27: Generation & supply integrated EBITDA at €412m, -32% YoY
Generation & supply integrated EBITDA at €412m, -32% YoY following integrated margin normalization vs. extremely positive 1Q23 Hydro, Clients & EM Recurring EBITDA €m YoY growth, % Iberia 1Q23 1Q24 YoY -32% ∆ YoY 605 Hydro coefficient in Portugal, avg.=1 0.95 1.38 45% Hydro Generation, TWh 3.6 4.9 +
Slide 28: Wind & Solar EBITDA flat YoY
Wind & Solar EBITDA flat YoY: ~€58m AR gains mitigating lower generation YoY Wind & Solar Recurring EBITDA €m YoY growth, % ∆ YoY 1Q23 1Q24 YoY +1% Installed Capacity1, GW 14.8 16.5 +12% 448 454 Prod. deviation vs. exp. LT Gross -2% -2% -0 p.p. -27m Capacity Factor, % 228 Europe 255 -11% YoY Electri
Slide 29: Electricity Networks EBITDA +24%
Electricity Networks EBITDA +24% on the back of ~€76m asset rotation gain from transmission deal in Brazil Electricity Networks Recurring EBITDA €m YoY growth, % Iberia 1Q23 1Q24 YoY +24% ∆ YoY Return on RAB Portugal , % 5.56% 5.55% -2 bps 474 Return on RAB Spain, % 5.58% 5.58% 0 bps 381 135 +8m OPE
Slide 30: High financial liquidity at >€9 Bn
High financial liquidity at >€9 Bn supported by >€7bn of available credit lines, covering refinancing needs until 2027 Financial liquidity EDP consolidated debt maturity profile1 as of 1Q24, €Bn as of 1Q24, €Bn Cash & Equivalents 2.3 EDP Brasil EDP SA & EDP Finance BV and Other (% of total debt) Ava
Slide 31: Main market and macro assumptions vs. Previous Plan
Main market and macro assumptions vs. Previous Plan CMD Current assumptions Pool Iberia TTF CO2 Inflation Europe % Inflation Brazil % €/MWh €/MWh €/ton Avg. IPCA / IGPM 126 90 81 82 60 60 3.7 3.2 60 58 59 3.9 3.6 3.5 2.1 2.4 3.3 30 35 30 EUR/USD EUR/BRL EUR 7Y MidSwap USD 7Y Treasuries SELIC % % % 1
Slide 32: Key sensitivities on net income for 2026
Key sensitivities on net income for 2026 D 2026 Net Income Impact Avg. Pool Price Spain €5/MWh ~€40m IB Hydro volume 10% ~€30m FX EUR/USD +0.10 ~€30m FX EUR/BRL +0.50 ~€30m Euribor +100bps ~€20m 1Q24 | Results Presentation 32
Slide 33: 2026 EBITDA Guidance
2026 EBITDA Guidance Detail by segment ~€2.4 Bn ~€5.0-5.1 Bn Electricity Networks ~€1.6 Bn 2026 EBITDA guidance Generation & Supply ~€1.0 – 1.1 Bn 1Q24 | Results Presentation 33
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