Slide 1: Investor presentation Q2 2024
Investor presentation Q2 2024 15 August 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: Q2 2024 highlights
Q2 2024 highlights Good operational performance • Q2 2024 EBITDA1 of DKK 5.3 bn, up 59 % vs. same period last year. Offshore sites delivering DKK 4.4 bn, an increase of 40 % • Full-year EBITDA guidance of DKK 23-26 bn re-iterated, with higher Offshore and lower Bioenergy earnings than previously exp
Slide 4: Executing on our projects under construction
Executing on our projects under construction Offshore (6.9 GW) Onshore (0.7 GW) German Changhua Revolution Sunrise Hornsea 3 / Europe US programme 2b and 4 Wind Wind BESS 2,852 MW / Capacity1 1,166 MW2 920 MW 704 MW 924 MW 300 MW 195 MW 544 MW4 COD 2024/20253 2025 2026 2026/2027 2027 2024-2026 2024
Slide 5: Earnings increase driven by strong offshore performance
Earnings increase driven by strong offshore performance EBITDA1 of DKK 5.3 billion in Q2 2024, up 59 % vs. last year EBITDA excluding new partnerships and cancellation fees • Offshore sites earnings increased 40 % driven by: Q2 2023 3,320 - Ramp-up generation at Greater Changhua 1 and 2a, South Fork
Slide 6: Net profit, ROCE, and Equity
Net profit, ROCE, and Equity Adjusted net profit1 Adjusted ROCE2 Equity Equity excl. hedging reserves DKKbn %, last 12 months DKKbn Hedging reserves 0.8 13.2 13.1 83.3 83.4 94.0 93.7 -0.5 -10.7 -10.3 Q2 2023 Q2 2024 30 Jun 2023 30 Jun 2024 31 Mar 2024 30 Jun 2024 Adjusted net profit of DKK 0.8 bn Ad
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 % 8.3 23 49.9 0.3 49.4 -3.0 18 -6.1 31 Mar 2024 CFO Gross investments Divestments Other 30 Jun 2024 30 Jun 2023 30 Jun 2024 Net interest-bearing debt of DKK 49.4 bn, slightly below Q1 2024 FFO / Adj. net
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 2.6 92 2.1 Revenue 91 30 Jun 2023 30 Jun 2024 30 Jun 2023 30 Jun 2024 CAPEX 99 Renewable share of energy at 97 % TRIR of 2.1 • Higher share of generation from ram
Slide 9: 2024 guidance
2024 guidance EBITDA EBITDA in 2024, excluding new partnership agreements and impact cancellation fees, is unchanged and still expected to amount to DKK 23-26 billion. Compared to the directional guidance provided in the annual report for 2023, we now expect earnings from Offshore to be neutral (fro
Slide 10: Continued execution of business plan
Continued execution of business plan Operational portfolio delivering strong earnings in H1 2024 Commissioned around 2 GW renewable capacity supporting long-term growth ambition Strategic decision to de-prioritise effort within liquid e-fuels market Project specific issue at Revolution Wind causing
Slide 11: Q&A
Q&A
Slide 12: Appendix
Appendix Orsted
Slide 13: 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 14: Group – Financial highlights
Financials Group – Financial highlights Financial highlights Q2 2024 Q2 2023 D H1 2024 H1 2023 D EBITDA DKKm 6,570 3,320 98 % 14,058 10,230 37 % - New partnerships - - n. a. - - n.a. - Cancellation fees 1,300 - n.a. 1,300 - n.a. EBITDA excl. new partnerships and 5,270 3,320 59 % 12,758 10,230 25 % c
Slide 15: Offshore – Financial highlights
Financials Offshore – Financial highlights Financial highlights Q2 2024 Q2 2023 D H1 2024 H1 2023 D EBITDA DKKm 5,218 2,979 75 % 11,301 8,391 35 % • Sites, O&Ms and PPAs 4,400 3,135 40 % 11,328 8,994 26 % • Construction agreements and divestment gains 6 340 (98 %) (277) 298 n.a. Wind speeds, m/s • C
Slide 16: Onshore – Financial highlights
Financials Onshore – Financial highlights Financial highlights Q2 2024 Q2 2023 D H1 2024 H1 2023 D EBITDA DKKm 995 792 26 % 1,811 1,626 11 % • Sites 300 292 3% 603 616 (2 %) • Production tax credits and tax attributes 875 637 37 % 1,618 1,396 16 % Wind speeds, m/s • Other, incl. project development
Slide 17: Bioenergy & Other – Financial highlights
Financials Bioenergy & Other – Financial highlights Financial highlights Q2 2024 Q2 2023 D H1 2024 H1 2023 D EBITDA DKKm (36) (583) (94 %) 398 (66) n.a. • CHP plants 77 (244) n.a. 664 601 10 % • Gas Markets & Infrastructure (42) (279) (85 %) (121) (516) (77 %) • Other, incl. project development (71)
Slide 18: Impairments
Financials Impairments H1 2024 Q2 2024 30 June 2024 Sensitivity impact Impairment losses Impairment losses CGUs1, DKKm (reversals) (reversals) Recoverable amounts + 50 bps WACC - 50 bps WACC Sunrise Wind (1,426) - 4,839 (0.8) 0.8 Revolution Wind 2,313 2,080 3,281 (0.5) 0.5 South Fork 103 - 3,195 (0.
Slide 19: Capital employed
Financials Capital employed Capital employed, DKKm Q2 2024 Q2 2023 Capital employed by segment %, Q2 2024 Intangible assets, and property and equipment 192,339 190,353 Offshore Onshore Assets classified as held for sale, net - - Bioenergy & Other Equity investments and non-current receivables 1,189
Slide 20: FFO/Adjusted net debt calculation
Financials FFO/Adjusted net debt calculation Funds from operations (FFO) LTM, DKKm 30 Jun 2024 31 Dec 2023 30 Jun 2023 EBITDA 22,545 18,717 29,242 Change in provisions and other adjustments 4,104 8,742 (1,174) Change in derivatives 126 4,274 1,786 Variation margin (add back) (5,007) (7,086) (5,855)
Slide 21: Taxonomy-aligned KPIs
Financials Taxonomy-aligned KPIs Incl. voluntary disclosures Unit H1 2024 H1 2023 D 2023 Revenue (turnover) DKKm 34,191 40,284 (15 %) 79,255 Taxonomy-aligned revenue (turnover) % 91 83 8 %p 86 - Electricity generation from solar PV and storage of electricity % 1 1 0 %p 1 - Electricity generation fro
Slide 22: Energy and currency exposure
Financials Energy and currency exposure Merchant exposure 2024-2026 Currency exposure Q3 2024 – Q2 2029 DKKbn DKKbn Before hedging Before hedging After hedging via as-produced PPAs and traded markets After hedging 60.1 27.7 24.3 11.3 17.0 15.2 0.1 3.5 2.9 5.3 -0.3 -0.8 -0.8 Power Gas Oil Spread -10.
Slide 23: 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 % • Prioritise inflation-indexed revenue • Debt used to de-risk fixed nominal • Corporate PPAs used to de-risk to protect against cost inflation and revenue fro
Slide 24: 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 ~60 % matched ~50 % matched Present v
Slide 25: 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 4.0 5.0 2.6 0.9 1.2 0.4 Dec 2023 June 2024 Dec 2023 June 2024 Initial margin Cash, available Variation margin Securities, available Credit support annex and
Slide 26: 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 Jun 2024, DKKbn 30 June 2024, DKKbn >90 % of gross debt1 (bond and bank debt) fixed interest 35.3 rate. Remainder floating or inflation-linked Bank
Slide 27: 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 28: 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 29: Renewable capacity as of 30 June 2024
Build-out & market development Renewable capacity as of 30 June 2024 Indicator, MW, gross H1 2024 H1 2023 Δ 2023 Installed renewable capacity Installed renewable capacity The installed renewable capacity is calculated as 17,490 15,514 1,976 15,731 renewable gross capacity installed by Ørsted Offshor
Slide 30: Offshore wind build-out plan as per 30 June 2024
Build-out & market development Offshore wind build-out plan as per 30 June 2024 Installed capacity build-up MW 1.255 19.520 Under construction 1.498 2.852 16.767 Awarded 924 704 300 920 1.166 9.771 130 Installed South Fork German Greater Revolution Hornsea Sunrise Wind Hornsea 3 Decided Baltica 2 Ba
Slide 31: Onshore build-out plan as per 30 June 2024
Build-out & market development Onshore build-out plan as per 30 June 2024 Installed capacity build-up MW Under construction 471 71 124 6.383 5.644 73 Installed capacity Old 3001 Mockingbird German Irish Portfolio3 Decided (FID’ed) and Q2 2024 portfolio2 installed capacity Region ERCOT, TX ERCOT, TX
Slide 32: Offshore market development – Europe (1/2)
Build-out & market development Offshore market development – Europe (1/2) • The new Government has been elected with a manifesto strongly focused on green growth, including a key ”mission” of making Britain a clean energy superpower and establishing a publicly-owned energy company (GB Energy). This
Slide 33: Offshore market development – Europe (2/2)
Build-out & market development Offshore market development – Europe (2/2) • Upcoming tenders for IJmuiden Ver Gamma and Nederwiek, totaling 4 GW, due in Q3 2025 Netherlands • Evaluation method is qualitative assessment with a financial bid, similar to the recent IJmuiden Ver tender • Government cons
Slide 34: Offshore market development – US
Build-out & market development Offshore market development – US • Target of 9 GW offshore wind by 2035; approximately 1.7 GW contracted New York • State has executed contracts for awards issued through NY 4 "rebid" RFP, including for Sunrise Wind • New York has initiated the state's fifth offshore w
Slide 35: Offshore market development – APAC
Build-out & market development Offshore market development – APAC • Target of 5.6 GW of offshore wind by 2025 and 20.6 GW by 2035 Taiwan • Currently, Taiwan has 2.1 GW of installed offshore wind power capacity in operation. By the end of this year, this number is expected to reach approximately 3 GW
Slide 36: 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 Award expected Award expected Q3-Q4 2024 2024-2025 Q3 2025 2025 2025 Q3 2024 1 Q3 2024 Seabed auctions Danish tender IJmuiden Ver Gamma + CfD AR7 German tender Rhode
Slide 37: 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 38: ESG Performance
ESG ESG Performance Total heat and power generation, Q2 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 38 Science- based 2023 34/66 Onshore wind 34 targets2 2022 33/6
Slide 39: Industry-leading sustainability initiatives ESG rating performance
ESG Ørsted has been named the world’s most 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 our science-based net-zero target by 2040 (scope 1-3). Key
Slide 40: Our publications
ESG 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 the right decisions assessment (DMA) for the A
Slide 41: 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