Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Presentation (November 2022)
33 slides from Edp's investor presentation, November 2022
Slide 1: Investors' Presentation November 2022
INVESTORS’ PRESENTATION November 2022
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: We are a global company, leader in the energy sector, present in 29 markets
We are a global company, leader in the energy sector, present in 29 markets throughout different stages of the value chain % Weight on EBITDA 2021 ~62% Renewables Wind, Solar & Hydro ~36% Networks Distribution Transmission 21% 32% EBITDA Client solutions & €3.7 Bn ~3% energy management 20% New Clien
Slide 4: Business Strategy Execution
Business Strategy Execution
Slide 5: We have started this journey in Renewables over decades ago
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 6: Strategic commitments on track to deliver superior value creation
Strategic commitments on track as we step up to the challenge to deliver superior value creation in a challenging context Execution 2021-2025 Target 10.8 GW of committed renewable capacity ~55% 20 GW of gross additions 2021-25 (4.3 GW U/C) Asset rotation(1): ~€3.4 Bn proceeds ~8Bn proceeds 2021-2025
Slide 7: 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 Mostly maintenance investments Differentiation Cost competitiveness Solar Cash generator Capture r
Slide 8: We have +10.8 GW capacity additions secured evenly split per geography
We have +10.8 GW capacity additions secured (55%) evenly split per geography 4.4 3.5 North America GW Europe GW 50% committed 52% committed 1.5 GW 2.8 GW 0.2 GW 6.7 1.5 GW 0.8 GW 1.0 GW 0.2 GW post 2025 8.8 20 GW1 1.1 GW Gross post 2025 Additions 2021-25 1.4 2.2 South America 2.9 APAC 0.8 GW GW 76%
Slide 9: 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% 4.8 ~80% ~40% Renewables Europe ~15% ~
Slide 10: Governments are joining forces to foster renewables growth
Governments are joining forces to foster renewables growth, while context of high energy prices pushes for additional regulation in EU countries IRA represents unprecedented US Scenarios of price stabilization and commitment on climate, aiming to regulation from European governments reduce carbon em
Slide 11: Out of the 20 GW of 2021-25 capacity additions, EDP has 40% already installed
Out of the 20 GW of 2021-25 capacity additions, EDP has 40% already installed or under construction and 55% secured EDP continues to accelerate growth across all Short-term challenges have implied some platforms, with +3.7 GW installed & U/C YTD transfers from 2022 to 2023… 10.8 GW committed capacit
Slide 12: EDP Asset Rotation program keeps delivering value
EDP Asset Rotation program keeps delivering value, with €3.4bn of AR proceeds secured, >40% of the €8bn target for 2021-25 AR net GW/year AR Gains/year AR Gains/MW GW €bn €m AR Proceeds 1,4 +1.5x +2x 0,5 0,5 1,0 ~0,3 ~0,2 In line with BP Guidance €3.4bn BP Executed BP Executed BP Executed Guidance 2
Slide 13: Significant volumes of LT financing closed in 2021-2022
Significant volumes of LT financing closed in 2021-2022 under attractive market conditions in accordance with our conservative funding policy In 21/22 EDP has issued ~€4Bn through green 9M22 Financial debt breakdown senior bonds & hybrids 2021: Interest Rate Type Currency €2Bn Hybrid issued @ avg. 1
Slide 14: Strong liquidity position covering refinancing needs beyond 2024
Strong liquidity position covering refinancing needs beyond 2024 Financial Liquidity as of Sep-22 (Bn) Debt breakdown by Maturity BRL EUR & USD Cash & Equivalents €3.5Bn 8.3 0.4 Available Credit Lines €5.8Bn Total Liquidity 9M22 €9.3Bn €7.2Bn 7.9 3.0 €1Bn 2.8 Bonds Issued in Oct-22 2.4 0.8 2.2 1.8 0
Slide 15: 2023 electricity regulated tariffs proposal in Portugal
2023 electricity regulated tariffs proposal in Portugal (Oct.17 th): Despite high electricity wholesale prices, retail tariffs stable, system debt down by €2bn Reg. Electricity Tariff components Wholesale Price vs Renewables FiT Electricity System Debt Residentials end-user tariffs2; €/MWh €Bn 3 1 E
Slide 16: Electricity Networks in Portugal 2023 regulated revenues +2%
Electricity Networks in Portugal 2023 regulated revenues +2% supported by indexation to Portugal 10-year bond yields and inflation Electricity Distribution regulated revenues ERSE’s proposal 2022 2023 YoY Annual RoRAB indexed to 10-year Portuguese Regulated bond yields1 Revenues €1,029m €1,050m +2.0
Slide 17: Positive macro environment in Brazil in a counter cycle with Europe and United States
Positive macro environment in Brazil in a counter cycle with Europe and United States Favourable macro prospects… …with strong business execution by EDP in Brazil Electricity PLD at R$60MWh (~€10MWh) Investment focused on Electricity €0.9 Bn Wholesale Price Low pressure on tariffs Networks and Wind
Slide 18: 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 70% renewables generation in 9M22 by 2025 by 2030 361 1762 -49% CO2 Specific Emissions(1) vs. 2015 201
Slide 19: We will deliver superior value to our shareholders
We will deliver superior value to our shareholders Superior green positioning and … delivering strong earnings growth… accelerated growth… Net income2, € Bn 9% p.a. All green ~1.2 2x by 2030 ~0.8 ~1.0 solar + wind installed capacity by 2025 €24 Bn >95% 20212 2023 2025 energy transition energy transi
Slide 20: 9M22 Results
9M22 Results @edp
Slide 21: Recurring EBITDA +21% YoY
Recurring EBITDA +21% YoY prompt by good performance of Wind & Solar and Electricity Networks despite the penalizing Iberian hydro shortfall Recurring EBITDA(1,2) €m YoY growth, % ∆ YoY +21% YoY 3,046 2,511 +15% EDPR Installed Capacity +10% YoY excl. FX 1,482 +565m Wind resources in line with LT avg
Slide 22: Net financial costs increase in 9M22 impacted by higher interest rates in Brazil
Net financial costs increase in 9M22 impacted by higher interest rates in Brazil Net Financial Costs Cost of Debt(1) €m >2X Brazil EDP excl Brazil €m +55% 2.4% 2.6% 580 188 533 47 Avg. Cost 150 of Debt 4.3% 356 345 242 Excl. Brazil 11 39 92 3.3% 253 291 9M21 Non- 9M21 Interest 9M22 Non- 9M22 EUR USD
Slide 23: Recurring Net Profit penalized by higher financial costs in Brazil
Recurring Net Profit penalized by higher financial costs in Brazil and increase of minority interests Recurring Net Profit (1) Reported Net Profit €m Δ YoY €m EBITDA 3,046 +534 +1% YoY D&A and Reported (1) 510m 518m Provisions 1,223 +120 EBIT 1,822 +654 Non-recurring items 0m +6m Net Financial Costs
Slide 24: Increase in Net Debt impacted by acceleration of expansion investment
Increase in Net Debt impacted by the acceleration of Net expansion investment and temporary WC due to higher commodity prices Change in Net Debt € Bn 15.3 +€5.1 Bn Gross Expansions Investments 0.5 -€1.5Bn Asset Rotation Proceeds 0.7 +€0.6 Bn Forex Organic CF 2.9 11.6 1.4 1.1 Net Debt Recurring Cash
Slide 25: Annex
Annex @edp
Slide 26: We will deliver superior value, while keeping a solid balance sheet
We will deliver superior value, while keeping a solid balance sheet and low-risk profile 2021 2023 2025 CAPEX1, € Bn/yr Step-up investment plan with 3.9 4.5 4.6 +1 Bn 2025 vs. 20 renewables focus EBITDA2, € Bn Increased results with distinctive 3.7 4.2 4.7 +6% CAGR 2020-25 energy transition profile
Slide 27: 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 28: 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 29: Ocean Winds continues to grow with a total portfolio of 14.6 GW
Ocean Winds continues to grow with a total portfolio of 14.6 GW GW Gross 1,5 3,6 14,6 9,5 Moray West 882 MW project in Scotland (14.7 MW x 60, 6,6 COD 2024) under construction since July 22 & EFGL (COD 2024) completed its Financial Close on July 22 Total Portfolio Total Installed Under Dev. Under De
Slide 30: Networks - Key highlights
Networks - Key highlights +xx Growth, 2020-25 ~€0.7 Bn annual Regulated Asset Base to EBITDA to increase by 50% organic CAPEX 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 31: 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 32: Key Data on EDP debt outstanding
Key Data on EDP debt outstanding Amount Name Currency Coupon Maturity Issue date Market Price (bid) Market Yield ISIN (million) Private Placements EDP BV Private Placement EUR 49 2,661% 23/12/2022 23/12/2002 XS0160258280 EDP BV Private Placement EUR 160 0,000% 12/11/2023 12/11/2008 XS0399353506 Seni
Slide 33: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Investor presentation 33
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