Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — FY2022 Earnings Presentation
20 slides from Edp's earnings presentation, March 2023
Slide 1: Results Presentation 2022
PORTUGAL Results Presentation 2022 | Sebigal Hybrid Lisbon, March 2°¢
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: Solid financial performance in 2022 and delivery of guidance
EDP with solid financial performance in 2022 and delivery of guidance in an adverse market environment, marked by a strong rebound in 4Q22 Main targets delivered Highlights Good performance on 2022 Figures Guidance 2022 2022 4Q22 Wind & Solar, Electricity ΔYoY Δ QoQ Networks Brazil and Recurring Str
Slide 4: Strong recovery of hydro production and reservoir levels in 4Q22
Strong recovery of hydro production and reservoir levels in 4Q22 and beginning of 2023 Extremely dry 2021/2022 hydrological year(1) …mitigated by the increase in rainfall in 4Q22 resulted in electricity short position in 9M22… and reservoir build-up for 2023 Iberia Avg. Reservoir levels in Portugal
Slide 5: Drought and volatile gas markets negatively impacted 2022, mitigated by thermal
Drought and volatile gas markets negatively impacted 2022, mitigated by higher thermal position Increased need for thermal in a period of peak Thermal and Energy management main drivers gas prices +50% YoY Thermal 15.9 10.6 Strong thermal generation performance in 2022 Generation TWh TWh compensatin
Slide 6: Ramp up of investments in 2022 with a focus on renewables and networks
Ramp up of investments in 2022 with a focus on renewables and electricity networks, support growth prospects driven by the energy transition 2022 Gross Investments focused on Renewables Strong Asset Rotation Execution Executed Guidance Wind & solar: €5.2 Bn 2022 +2.2 GW capacity added in 2022 +1.4x
Slide 7: Alignment with energy transition and ESG enables sustainable funding
EDP’s alignment with the energy transition and ESG criteria enables the business to finance growth with sustainable and cost competitive funding Stepping-up sustainable leadership position… …while being recognized by ESG performance 96% CAPEX aligned with EU Taxonomy EDP is the #1 integrated electri
Slide 8: Since our last capital markets day, we have scaled-up delivery
Since our last capital markets day, we have scaled-up delivery, on the back of a sound balance sheet and a truly global organization Accelerated and Doubled delivery with an average 2.4 GW / year 2021-22 (vs. 1.3 GW / year sustainable growth 2019-20) Outperformed in Asset Rotation with €0.5 Bn / yea
Slide 9: Financial Performance
Er = FINANCIAL PERFORMANCE cas
Slide 10: Recurring EBITDA +21% YoY
Recurring EBITDA +21% YoY prompt by good performance of Wind & Solar and Electricity Networks Recurring EBITDA(1,2) €m YoY growth, % ∆ YoY +21% YoY 4,522 3,735 +15% • EDPR Installed Capacity +9% YoY excl. FX 2,157 +397m • Electricity generation increased 10% • Avg. selling price 21% higher YoY Wind
Slide 11: Wind & Solar EBITDA +23% YoY
Wind & Solar EBITDA +23% YoY on the back of outstanding top line performance from base portfolio Wind & Solar Recurring EBITDA(1) €m YoY growth, % ∆ YoY 2021 2022 YoY 23% YoY +41% YoY excl. AR Gains 13.6 14.7 +9% 2,157 Installed Capacity(2), GW 1,760 423 Prod. deviation vs. exp. LT Gross -4% -2% +3
Slide 12: Hydro + CS&EM: weak hydro in 9M22, strong 4Q22 recovery
Extremely weak hydro in 9M22 with strong recovery in 4Q22, 50% increase YoY of thermal generation and improved performance in Energy Management Hydro + CS&EM Recurring EBITDA(1) €m YoY growth, % Iberia 2021 2022 YoY +33% YoY ∆ YoY 869 Hydro resources vs. Avg(2) , % -7% -37% -30 p.p. Hydro Generation
Slide 13: Electricity Networks Recurring EBITDA +12% YoY
Electricity Networks Recurring EBITDA +12% YoY reflecting inflation updates of tariffs in Brazil Electricity Networks Recurring EBITDA €m YoY growth, % Iberia 2021 2022 YoY ∆ YoY Return on RAB Portugal (2), % 4.76% 5.05% +29 bps +12% YoY 1,504 Return on RAB Spain, % 5.58% 5.58% 0 bps 1,340 533 -3m O
Slide 14: Higher financial costs impacted by FX and interest rates
Higher financial costs impacted by FX and higher interest rates specially related to Brazil (financial costs >2x), ex-Brazil interest related costs +41% Net Financial Costs Cost of Debt(1) €m >2X Brazil EDP excl Brazil €m +61% 2.5% 2.7% 332 871 910 39 170 Avg. Cost 320 of Debt 4.4% Excl. Brazil 511
Slide 15: Solid balance sheet with net expansion investment funded by recurring CF
Solid balance sheet with net expansion investment funded through a solid recurring organic CF and increase in net debt Change in Net Debt € Bn 13.2 0.4 0.7 11.6 +€0.3 Bn Forex 2.1 3.1 0.5 Net Debt Recurring Regulatory Net Expansion Dividends EDP FX and Other Net Debt Dec-21 Organic CF WC Investments
Slide 16: Recurring Net Profit +6%
Recurring Net Profit +6% with EBITDA growth partially offset by financial costs on forex and higher cost of debt Recurring Net Profit (1) Recurring Net Profit €m Δ YoY €m +6% YoY +787 871 EBITDA 4,522 826 D&A and Provisions 1,658 -146 EBIT 2,864 +641 Net Financial Costs 910 -359 2021 2022 Income Tax
Slide 17: 2022 Closing Remarks
7 2022 CLOSING REMARKS aia
Slide 18: Closing Remarks
Closing Remarks Solid financial performance and delivery on guidance in an adverse market environment, marked by a strong rebound in 4Q22, with recurring EBITDA +21% YoY and recurring Net Profit +6% YoY Strong Renewables performance, with higher installed capacity, higher generation, asset rotation
Slide 19: PORTUGAL
4 PORTUGAL — if Sabugal Hybrid
Slide 20: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
EDP - Energias de Portugal — FY2022 Earnings Presentation on 6ix