Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Presentation (May 2023)
43 slides from Edp's investor presentation, May 2023
Slide 1: Investors' Presentation May 2023
INVESTORS’ PRESENTATION May 2023
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: Global energy leader present in 4 regional hubs
We are a global company, leader in the energy sector, present in 4 regional hubs throughout different stages of the value chain % Weight on EBITDA 2022 Renewables, Clients & EM North America Europe APAC ~67% Wind Solar Solar Energy onshore utility-scale DG management Wind Hydro Storage H2 Client off
Slide 4: Business Strategy
@edp Business Strategy
Slide 5: Leading the energy transition to create superior value
Leading the energy transition to create superior value Our commitments Key figures and targets Accelerated and sustainable growth €25 Bn 4.5 GW/yr >50 GW gross investment 2023-26 gross additions 2023-26 RES gross additions 2021-30 ESG excellence and future-proof organization Coal free All Green Net
Slide 6: Increasing investment in the energy transition
Accelerated and sustainable growth We are increasing our investment in the energy transition, with a strong focus on renewables and core low-risk markets Reinforcing our investment... ... in the energy transition, across core low risk markets Annual Gross Investments1 (€ Bn) Gross Investments1 2023-
Slide 7: Consolidating presence across technologies
We are consolidating our presence across technologies with differentiating value propositions Wind & Solar (5.0 GW) Wind onshore ~40% Top 4 global1 player with extensive track record along the full value chain with highly experienced teams Solar Utility scale (9.4 GW) ~40% Additions ramping up quick
Slide 8: Growing our distribution asset base
We are growing our distribution asset base and we have high visibility over the upcoming period Distribution business Growing our Distribution business… ... on the back of visibility on regulatory frameworks Regulated Asset Base, € Bn RoR Regulation and Gross Investments1 Portugal Spain Brazil By 20
Slide 9: Ramping up growth with visibility on execution
Accelerated and sustainable growth We are successfully ramping up growth with clear visibility on execution We are scaling-up our growth rate… … and have clear visibility on execution Gross additions, GW € Bn, 2023-26 4.5 GW/yr ~181 GW €25 Bn (2023-26) Electricity Networks ~15% 4.8 ~50% 4.1 ~6x Rene
Slide 10: 1.5 GW renewables secured capacity since CMD
1.5 GW renewables secured capacity since CMD reaching ~50% of the target for 2023-2026 Secured Capacity for 2023-2026 Growth of secured capacity supported by strong GW renewables demand % % of target additions +1.5 GW secured in March & April diversified by 6 markets, mainly in EU and US, and 3 tech
Slide 11: Accelerating global Solar DG business
We continue to accelerate our leading global Solar DG business, deploying 0.3 GW over the last 12 months GWac Installed capacity Installed capacity, GWac Main Highlights Up to 500 MWac signed w/ Google, largest corporate sponsorship for DG signed between two 0.1 companies in the US 0.2 GW GW High gr
Slide 12: Distinctive asset rotation strategy
Accelerated and sustainable growth We will deploy our distinctive asset rotation strategy to crystalize value and fund additional growth opportunities ~€7 Bn AR proceeds and capital gains ~€20 Bn 4.5 GW/yr EV1 rotated track record since 2012 Upfront value crystallization ~30% Build to Sell Growth ac
Slide 13: Actively managing EDP's listed subsidiaries
Distinctive and resilient portfolio We are actively managing EDP's listed subsidiaries Core EDP growth business with long- term value (>70% ownership) Capital raise of c. €1.0 Bn to fund acceleration of accretive Largest European listed pure-play renewables growth renewables Sizeable market with sol
Slide 14: Tender offer on EDP Brasil
Tender offer on EDP Brasil: Auction expected in 3Q23, €1Bn investment in case of 100% success, already funded through EDP’s €1bn capital raise CVM review process & Timeline Rationale for the acquisition March 2 - 1st filing with CVM March 17 - Minorities deadline to question the appraisal Simplifica
Slide 15: Diversified sources of cash to deliver growth
We have diversified sources of cash to deliver on our growth BP23-26 Organic Sources and Uses of Funds (€ Bn) Uses of cash Sources of cash ~€27 Bn Dividends ~3 Organic CF1 Delisting ~1 (net of maintenance ~9 EDP Brasil CAPEX) and others Asset Rotation + ~8 Expansion Disposals Investment ~23 TEI2 ~4
Slide 16: Sound balance-sheet and low-risk profile
We are keeping a sound balance-sheet and low-risk profile 17 Reinforced commitment to 16 13 a strong BBB rating Net Debt Reached >20% FFO/ND in € Bn 2021, achieving BBB credit rating Solid cash flow generation with +€4 Bn net debt after a ~20% ~21% ~21% €25 Bn gross investments plan FFO/Net Debt 1 O
Slide 17: >€10 Bn financial liquidity as of Mar-23
>€10 Bn financial liquidity as of Mar-23 covering refinancing needs beyond 2025 Financial liquidity as of Mar-23 EDP consolidated debt maturity profile as of Mar-231 € Bn € Bn EDP Brasil EDP SA & EDP Finance BV and Other Cash & Equivalents 4.1 4.5 2.9 2.5 Available Credit Lines 6.2 2.0 2.3 1.9 Of wh
Slide 18: Limited exposure to short term interest rates
Limited exposure to short term interest rates, ~€2 Bn pre-hedged refinancing cost for 23-24, and continued high demand for clean energy asset rotations Debt by interest rate Avg. nominal debt by type as of Mar. 23 currency as of Mar. 23 % % Fixed EUR Asset Rotation for 2023 launched and on track to
Slide 19: Decarbonize: For a climate-positive world
Decarbonize: For a climate-positive world -28% 0.160 Coal free by 2025 Scope 1 + 21 (tCO2e/MWh) 0.157 +2% (vs. 2020) -77% (vs. 2020) -95% -96% All green by 2030 (vs. 2020) 0.112 0.036 (vs. 2020) (vs. 2020) 0.008 0.006 Net Zero by 2040 -45% Reinforce efforts for the (vs. 2020) -90% decarbonization pa
Slide 20: Financial targets
@edp Financial targets
Slide 21: Distinctive and resilient portfolio, low-risk profile
We have a distinctive and resilient portfolio, with a low-risk profile and focused geographic presence Our distinctive and resilient portfolio… ... increasingly aligned with the Energy Transition 2026 guidance, share of EBITDA <15% <5% Iberia >95% Energy Transition at our core Rest of Europe Share o
Slide 22: Selective and disciplined investment framework
We are keeping our selective and disciplined investment framework, delivering stronger returns throughout the cycle Attractive returns Typical metrics of project approvals1 over the last 6 months Target Achieved IRR/WACC (x) >1.4 Region Technology Unlevered project IRR2 Stronger returns and cash yie
Slide 23: Growing and consolidating energy transition portfolio
We are committed to further grow and consolidate our leading energy transition portfolio, delivering superior value Recuring Net 0.9 ~1.4-1.5 12-14% Income1, € Bn CAGR 2022-26 EBITDA, € Bn ~5.7 6% CAGR 2022-26 4.5 ~1.5 Electricity Networks 1.5 ~1.2 Hydro, Clients & EM 0.9 ~3.0 Wind & Solar2 2.2 2022
Slide 24: Sustained EPS growth and solid dividend policy
Superior value creation for all stakeholders We are delivering superior value through sustained EPS growth and a solid dividend policy with an increased floor Delivering strong earnings growth… … with an attractive dividend policy Recurring Net Income1 From… To… € Bn DPS floor €0.19 €0.19 in 2023 +1
Slide 25: 1Q23 Results
1Q23 Results @edp
Slide 26: Recurring EBITDA +2x YoY
Recurring EBITDA +2x YoY prompt by a recovery on hydro conditions and lower electricity and gas sourcing costs Recurring EBITDA1 ,€m YoY growth, % +96% YoY Excl. FX ∆ YoY +100% 1,478 1,415 • EDPR Installed Capacity +5% YoY • Electricity generation increased 11% +€54m EDPR +718m +€665m Hydro, • Avg.
Slide 27: Strong recovery of hydro generation
Strong recovery of hydro generation and sustainable reservoir levels as of today gives us confidence for the remaining 2023 Recovery of hydro volumes in 22/23 winter… …with hydro reservoir levels still above Average Reservoir levels in Portugal (%) Iberia Avg. Elect. Spot 229 183 146 113 96 Price (€
Slide 28: Net financial costs and cost of debt
Net Financial costs impacted by forex MtM, interest related costs +27% penalized by 90bps increase in avg. cost of debt (at 3.1% ex-Brazil) Net Financial Costs Cost of Debt1 Brazil EDP excl Brazil €m €m 2.3% 3.1% +27% 260 Avg. Cost 52 243 17 of Debt Excl. Brazil 191 4.8% 173 17 41% 43% 59% 3.9% 57%
Slide 29: Net Profit of €306m
Net Profit of €306m vs. an abnormally weak 1Q22, strong EBIT growth partially mitigated by higher financial costs and effective tax rate Recurring Net Profit1 Recurring Net Profit €m Δ YoY €m 359 306 EBITDA 1,415 +706 D&A and Provisions 426 -38 EBIT 990 +668 Higher EBT in Portugal and -76 Net Financ
Slide 30: Solid balance sheet, change in net debt
Solid balance sheet with net expansion investment funded through Capital increase but penalized by higher Regulatory Receivables Change in Net Debt € Bn 1.2 2.0 13.2 1.1 13.1 0.4 0.0 Net Debt Recurring Regulatory Net Expansion Equity raise FX and Other Net Debt Dec-22 Organic CF WC3 Investments at E
Slide 31: High renewables share and stable prices to consumers
High share of renewables in the system together with the FiT remuneration scheme allowed for stable prices to consumers Wholesale Price vs. Renewables Feed-in-Tariff Regulatory Electricity Tariff Components €/MWh Residentials end-users tariffs4 Energy component Global use of system tariff Renewable
Slide 32: Annex
Annex @edp
Slide 33: Strengthened strategic targets
We strengthen our strategic targets, reinforcing our ambition to lead the energy transition Our commitments Key targets BP 2021-25 BP 2023-26 Accelerated and Deployment ~4 GW/year ~4.5 GW/year sustainable growth Asset Rotation €1.6 Bn/year in AR; €0.3 Bn in gains €1.7 Bn/year in AR; €0.3 Bn in gains
Slide 34: Our ESG commitments
A WAY FOR A BETTER TOMORROW All in all – our ESG commitments Ambition Goal 2022 2026 target 2030 ambition Decarbonize: for a climate-positive SBTi: Scope 1 + Scope 2, gCO2e/kWh (% vs. 2020)1 160 (+2%) 36 (-77%) 8 (-95%) world SBTi: Scope 3 , MtCO2e (% vs. 2020)1 - - ~6Mn (-45%) Renewables generation
Slide 35: Brazil footprint aligned with EDP's equity story
Distinctive and resilient portfolio Brazil footprint and strategy is fully aligned with EDP’s equity story Weight of Brazil in the Group’s EBITDA Networks Hydro, Clients & EM Wind & Solar Energias do Brasil EDP Brasil Brazil’s contribution to EDP since 1995, conventional business EBITDA Brazil Por
Slide 36: Renewables, Clients & EM
wal, fh Renewables, Clients & EM
Slide 37: Consolidating superior renewables portfolio
We are consolidating our superior renewables’ portfolio, with a diversified technology mix Renewables EBITDA + Equity GW Evolution of installed capacity Geographic mix Technology mix GW, 2026 % installed capacity, 2026 % installed capacity, 2026 17% ~7 ~33 38% 2% 2% ~18 48% ~33 GW 9% ~33 GW 47% ~22
Slide 38: Reinforcing established onshore portfolio
We are reinforcing our established onshore portfolio, focusing on our core low-risk markets Onshore portfolio Target onshore additions 2023-26 Breakdown in % of total onshore additions EDP regional hubs North America Europe South America APAC 7.4 ~43% 5.9 ~35% 2.5 ~15% 1.2 ~7% GW GW GW GW Substantia
Slide 39: Ocean Winds offshore portfolio
OW has been building a sizeable and attractive offshore portfolio, providing significant visibility on growth over the next 10-15 years Offshore wind, GW Ocean Winds continues to grow with a total … which provides strong visibility on growth portfolio of 16.6 GW… post 2026 U/C Under dev. Floating Bo
Slide 40: Networks
Networks Investors’ Presentation 41
Slide 41: Growing and diversifying low-risk networks portfolio
We have been growing and diversifying our low- risk networks portfolio, acting as a portfolio stabilizer for the group Electricity Networks Resilient portfolio We are a top player in the … with strong track to volatile macro environments networks business… record and expertise Top tier grid operator
Slide 42: Investing in innovation and digitalization of networks
We are investing in innovation and digitalization, to deliver superior quality of service in our networks Distribution business Lead in innovation and digitalization… … enhancing quality and resilience… Average SAIDI1 across concessions, Min ~€0.9 Bn 100% investment in smart meters 405 -12% digitali
Slide 43: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Investor presentation 44
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