Slide 1: Investor presentation Q3 2024
Investor presentation Q3 2024 5 November 2024
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements which include projections of our short- and long-term financial performance and targets as well as our financial policies. Statements herein, other than statements of historical fact, regarding our future results of operations,
Slide 3: Q3 2024 highlights
Q3 2024 highlights Solid operational performance • Q3 2024 EBITDA1 of DKK 4.4 bn with Offshore sites delivering DKK 4.0 bn. Reported Q3 2024 EBITDA of DKK 9.5 bn • 9M 2024 EBITDA1 of DKK 17.2 bn and reported 9M 2024 EBITDA of DKK 23.6 bn • Full-year EBITDA1 guidance narrowed to DKK 24 - 26 bn from D
Slide 4: Executing on our projects under construction
Executing on our projects under construction Offshore (7.0 GW) Onshore (0.7 GW) German Changhua Revolution Sunrise Hornsea 3 / Europe US programme 2b and 4 Wind Wind BESS 2,955 MW / Capacity1 1,166 MW2 920 MW 704 MW 924 MW 300 MW 207 MW 500 MW COD 2024/Q1 20263 2025 2026 2026/2027 2027 2024-2026 202
Slide 5: Solid underlying earnings performance for Q3 2024
Solid underlying earnings performance for Q3 2024 EBITDA1 of DKK 4.4 billion in Q3 2024 EBITDA excluding new partnerships and cancellation fees • Offshore sites earnings in line with last year driven by: Q3 2023 incl. 9,173 - Ramp-up generation at South Fork and Gode Wind 3, offset by new partnershi
Slide 6: Net profit and ROCE
Net profit and ROCE Impairment losses (reversals) Adjusted net profit1 Adjusted ROCE2 DKKbn DKKbn %, last 12 months Onshore 28.4 Offshore 12.6 11.5 1.4 1.9 27.0 0.3 0.4 0.5 -0.2 Q3 2023 Q3 2024 Q3 2023 Q3 2024 30 Sep 2023 30 Sep 2024 Net impairment loss of DKK 0.3 bn Adjusted net profit of DKK 0.4 b
Slide 7: Net interest-bearing debt and credit metric
Net interest-bearing debt and credit metric Net interest-bearing debt FFO / Adj. net debt DKKbn % 1.9 0.2 62.8 21 9.8 1.6 49.4 13 30 Jun 2024 CFO Gross investments Repurchase Other 30 Sep 2024 30 Sep 2023 30 Sep 2024 of hybrids Net interest-bearing debt of DKK 62.8 bn, increase of DKK 13.5 bn since
Slide 8: Non-financial ratios
Non-financial ratios Taxonomy-aligned KPIs Renewable share of energy generation Safety %, YTD %, YTD Total recordable injury rate, YTD 97 2.9 92 Revenue 90 2.3 30 Sep 2023 30 Sep 2024 30 Sep 2023 30 Sep 2024 CAPEX 99 Renewable share of energy at 97 % TRIR of 2.3 • Increased renewable share mainly dr
Slide 9: 2024 guidance
2024 guidance EBITDA Based on the solid 9M 2024 earnings, we have narrowed our 2024 EBITDA guidance (excluding new partnership agreements and impact cancellation fees) to DKK 24-26 billion (previously DKK 23-26 billion). Gross investments Gross investments in 2024 are now expected to amount to DKK 3
Slide 10: Q&A
Q&A
Slide 11: Appendix
Appendix Orsted
Slide 12: Disclosure summary
Disclosure summary Strategic ambition and financial targets Year Financial policies Ambition for installed renewable capacity ~35-38 GW Target a solid investment grade rating with Moody’s/S&P/Fitch - Offshore ~20-22 GW - Onshore ~11-13 GW By 2030 FFO to adjusted net debt above 30 % - P2X ~1 GW - Bio
Slide 13: Group – Financial highlights
Financials Group – Financial highlights Financial highlights Q3 2024 Q3 2023 D 9M 2024 9M 2023 D EBITDA DKKm 9,548 9,173 4% 23,606 19,403 22 % - New partnerships - 4,007 n. a. - 4,007 n.a. - Cancellation fees 5,109 - n.a. 6,409 - n.a. EBITDA excl. new partnerships and 4,439 5,166 (14 %) 17,197 15,39
Slide 14: Offshore – Financial highlights
Financials Offshore – Financial highlights Financial highlights Q3 2024 Q3 2023 D 9M 2024 9M 2023 D EBITDA DKKm 8,530 8,037 6% 19,831 16,428 21 % • Sites, O&Ms and PPAs 3,958 4,050 (2 %) 15,286 13,043 17 % • Construction agreements and divestment gains 106 4,245 (98 %) (171) 4,542 n.a. Wind speeds,
Slide 15: Onshore – Financial highlights
Financials Onshore – Financial highlights Financial highlights Q3 2024 Q3 2023 D 9M 2024 9M 2023 D EBITDA DKKm 991 819 21 % 2,802 2,445 15 % • Sites 419 246 70 % 1,022 862 19 % • Production tax credits and tax attributes 731 581 26 % 2,349 1,977 19 % Wind speeds, m/s • Other, incl. project developme
Slide 16: Bioenergy & Other – Financial highlights
Financials Bioenergy & Other – Financial highlights Financial highlights Q3 2024 Q3 2023 D 9M 2024 9M 2023 D EBITDA DKKm (185) 155 n.a. 213 89 139 % • CHP plants (95) (219) (57 %) 596 382 49 % • Gas Markets & Infrastructure 125 485 (74 %) 4 (31) n.a. • Other, incl. project development (215) (111) 94
Slide 17: Impairments
Financials Impairments 9M 2024 Q3 2024 30 Sep 2024 Sensitivity impact, DKKbn Impairment losses Impairment losses CGUs1, DKKm (reversals) (reversals) Recoverable amounts + 50 bps WACC - 50 bps WACC Sunrise Wind (2,897) (1,471) 8,499 (1.5) 1.5 Revolution Wind 3,508 1,195 2,856 (0.5) 0.5 South Fork 237
Slide 18: Capital employed
Financials Capital employed Capital employed, DKKm 9M 2024 9M 2023 Capital employed by segment %, 9M 2024 Intangible assets, and property and equipment 198,261 181,301 Offshore Onshore Equity investments and non-current receivables 1,229 1,189 Bioenergy & Other Net working capital, capital expenditu
Slide 19: FFO/Adjusted net debt calculation
Financials FFO/Adjusted net debt calculation Funds from operations (FFO) LTM, DKKm 30 Sep 2024 31 Dec 2023 30 Sep 2023 EBITDA 22,920 18,717 26,099 Change in provisions and other adjustments (2,979) 8,742 (710) Change in derivatives (1,140) 4,274 7,900 Variation margin (add back) (5,170) (7,086) (13,
Slide 20: Taxonomy-aligned KPIs
Financials Taxonomy-aligned KPIs Incl. voluntary disclosures Unit 9M 2024 9M 2023 D 2023 Revenue (turnover) DKKm 49,957 57,725 (13 %) 79,255 Taxonomy-aligned revenue (turnover) % 90 85 5 %p 86 - Electricity generation from solar PV and storage of electricity % 1 1 0 %p 1 - Electricity generation fro
Slide 21: Energy and currency exposure
Financials Energy and currency exposure Merchant exposure 2024-2026 Currency exposure Q4 2024 – Q3 2029 DKKbn DKKbn Before hedging Before hedging After hedging via as-produced PPAs and traded markets After hedging 77.0 23.6 34.3 26.5 24.6 9.5 0.0 3.1 2.5 4.9 -0.5 -0.8 -0.8 Power Gas Oil Spread -14.6
Slide 22: Key financial exposures from revenues in 2024-2030
Financials Key financial exposures from revenues in 2024-2030 Inflation-indexed revenue Fixed nominal revenue Merchant revenue 20% 35% 45% • Prioritize inflation-indexed revenue • Fixed-rate debt used to de-risk fixed • Corporate PPAs used to de-risk to protect against cost inflation and nominal rev
Slide 23: Risk management of interest rate- and inflation risk
Financials Risk management of interest rate- and inflation risk Fixed-rate debt and hedges used to protect fixed Net inflation-linked operational cash flows in the period nominal cash flows against interest rate increases 2024-2030 protect against cost inflation ~55% matched ~50% matched Present val
Slide 24: Liquidity reserve remains significantly above target
Financials Liquidity reserve remains significantly above target Collateral and margin postings Liquidity reserve DKKbn DKKbn 7.9 90.7 76.7 6.3 5.9 4.0 63.6 5.0 4.7 2.6 0.9 0.7 1.2 0.4 0.5 Dec 2023 Jun 2024 Sep 2024 Dec 2023 Jun 2024 Sep 2024 Initial margin Cash, available Variation margin Securities
Slide 25: Debt and hybrids overview
Financials Debt and hybrids overview Total gross debt1 and hybrids Effective funding costs – Gross debt1 Maturity profile of notionals of gross debt1 30 September 2024, DKKbn 30 September 2024, DKKbn >90 % of gross debt1 (bond and bank debt) fixed interest 35.5 rate. Remainder floating or inflation-
Slide 26: Hybrid capital in short
Financials 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 equity in a cost-efficient manner: when calculating centra
Slide 27: Ørsted's outstanding senior bonds
Financials Ørsted’s outstanding senior bonds Outstanding Fixed/Floating Green Allocated to green Avoided emissions (thousand Bond Type Issue date Maturity Face Value Coupon Coupon payments amount rate bond projects (DKKm) tons CO2/year) Senior Unsecured Nov. 2017 26 Nov. 2029 EUR 750m EUR 750m Fixed
Slide 28: Renewable capacity as of 30 September 2024
Build-out & market development Renewable capacity as of 30 September 2024 Indicator, MW, gross 9M 2024 9M 2023 Δ 2023 Installed renewable capacity Installed renewable capacity The installed renewable capacity is calculated as 17,700 15,715 1,985 15,731 renewable gross capacity installed by Ørsted Of
Slide 29: Offshore wind build-out plan as per 30 September 2024
Build-out & market development Offshore wind build-out plan as per 30 September 2024 Installed capacity build-up MW 2,400 21,806 Under construction 1,036 1,498 Awarded 2,955 16,872 924 704 300 920 1,166 9,903 Installed German Greater Revolution Hornsea Sunrise Wind Hornsea 3 Decided Baltica 2 Baltic
Slide 30: Onshore build-out plan as per 30 September 2024
Build-out & market development Onshore build-out plan as per 30 September 2024 Installed capacity build-up MW Under construction 471 67 124 6,384 5,722 Installed capacity Mockingbird German Irish Portfolio2 Decided (FID’ed) and Q2 2024 portfolio1 installed capacity Region ERCOT, TX Germany Ireland E
Slide 31: Renewable energy market outlook
Build-out & market development Renewable energy market outlook Offshore wind Onshore renewables Power-to-X (P2X) Installed capacity (excl. China), GW Installed capacity (excl. China), GW Electrolyser capacity, GW2 ~133 ~3,840 ~260 28 APAC ~1,000 RoW1 15 Americas 130 RoW1, 3 x2.5 x6 ~800 APAC ~1,570
Slide 32: Significant offshore wind capacity expected to be auctioned in 2024/2025
Build-out & market development Significant offshore wind capacity expected to be auctioned in 2024/2025 Upcoming auctions and tenders Awards expected Q4 2024 2024-2025 Q1 2025 2025 2025 2025 Q4 2024 Seabed auctions Danish tender ORESS 2.1 Seabed auctions Polish tender German tender New Jersey 4 Gulf
Slide 33: ESG Performance
ESG ESG Performance Total heat and power generation, Q3 2024 Greenhouse gas emissions intensity Gender balance Energy source, % CO2e/kWh %, women/men Scope 1-3 (excl. natural gas sales) Total workforce Scope 1-2 2030 40/60 Offshore wind 44 Science- based 2023 34/66 Onshore wind 27 targets2 2022 33/6
Slide 34: Accelerating a sustainable build-out of renewable energy
ESG Accelerating a sustainable build-out Ørsted has been named the world’s most of renewable energy sustainable energy developer in Corporate Knights’ 2024 Global 100 index Industry-leading sustainability initiatives ESG rating performance Science-aligned climate action We continue working towards o
Slide 35: Strategic sustainability ambitions and targets
ESG Strategic sustainability ambitions and targets To prepare for the Corporate Sustainability Reporting Directive (CSRD), we have conducted a E Science-aligned Green energy that S A green transformation G Governance that enables double materiality climate action revives nature that works for people
Slide 36: Investor Relations contacts
Rasmus Hærvig Henriette Stenderup Head of Investor Relations Investor Relations Coordinator rakol@orsted.com hnste@orsted.com Sabine Lohse Valdemar Høgh Andersen Lead Investor Relations Officer Senior Investor Relations Officer sablo@orsted.com vehan@orsted.com