Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Presentation (November 2021)
29 slides from Edp's investor presentation, November 2021
Slide 1: Investor Presentation
Investor Presentation Lisbon, November 2021
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") solely for use at Forward-looking statements include statements regarding: objectives, goals, strategies, outlook and the presentation to be made on this date and its purpose is merely of informative natur
Slide 3: Leading the energy transition to create superior value
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 4: Strategic commitments on track as we step up to the challenge
Strategic commitments on track as we step up to the challenge to deliver superior value creation Key figures and targets 9M21 €24 Bn CAPEX in energy transition(1) €2.7 Bn (95% in RES + Networks) 8.1GW secured (41%) with 3.9 GW added 20 GW gross additions(1) YTD+U/C €8 Bn asset rotation ~€2.6 Bn sign
Slide 5: 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 additions Top 4 global player ramping up quickly Differentiation Mostly maintenance investments Solar Cost competitiveness Capture repowering, hybr
Slide 6: We have +8.1 GW capacity additions secured evenly split per geography
We have +8.1 GW capacity additions secured (41%) evenly split per geography 3.1 2.3 North America Europe GW GW 36% secured 33% secured 1.5 GW 1.6 GW 0.2 GW 6.7 1.3 GW 0.7 GW 0.3 GW post 2025 8.8 20 GW1 Gross Additions 0.5 GW post 2025 2021-25 1.4 0.7 LatAm 1.9 2.9 APAC GW GW 65% secured 48% secured
Slide 7: We will deliver unparalleled investment levels 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 key acceleration… markets in Europe and North America CAPEX1, € Bn/yr CAPEX1, Cumulative, € Bn, 2021-25 +65% 4.8 ~80% ~40% Renewables Europe ~15% ~
Slide 8: EDP has secured 8.1 GW whilst maintaining a sound investment approach
EDP has secured 8.1 GW whilst maintaining a sound investment approach Continued accelerated growth in renewables… … maintaining a selective and disciplined investment approach +2.5 GW of Wind & Solar Gross capacity (1) Strong execution added over the last 12 months Target Actual on capacity deployme
Slide 9: With Sunseap, we set up a 4th regional hub in APAC
With Sunseap, we set up a 4th regional hub, a platform for long term growth in APAC, becoming a true global clean energy player Global presence through EDPR’s installed … with a focus on accelerated and diversified growth capacity(1)… Europe APAC By Geography… Asia 6.3 GW 0.5 9% GW 24% North America
Slide 10: Asset rotation execution has been strong with €2.6bn of proceeds secured
Asset rotation execution has been strong with €2.6bn of proceeds secured at attractive multiples and €0.15bn(1) gains already booked Accelerated & Strong AR execution at attractive multiples, showcasing the value of EDPR projects sustainable growth EV/MW 1.7 1.25 1.6 €2.6bn of proceeds, ~33% €m of €
Slide 11: Contracting major equipment upfront at fixed price mitigating capex cost inflation
We have a policy of contracting major equipment upfront at fixed price mitigating concerns on capex cost inflation Secured Capacity Breakdown Recent Auctions already incorporating higher bid prices (e.g. % Spain Auction) Fully contracted (1) or Higher Revising Bid prices in PPAs under negotiation an
Slide 12: Policy environment highly supportive of the energy transition
We continue to witness a policy environment highly supportive of the energy transition Reiterated global Important legislative measures EC toolbox to tackle energy prices: commitments in the fight under discussion against climate change Need to accelerate energy transition investments $1.20 Tn $1.75
Slide 13: Regulatory framework in Portugal provides stable prices and system debt decline
Despite higher wholesale prices, regulatory framework in Portugal provides stable prices for residentials and continuous system debt decline End-users Regulated Electricity Tariff Portugal Electricity System Debt €/MWh; Low-voltage clients (residentials & SMEs) € Bn +0.2% 3.5 -50% Wholesale price 39
Slide 14: Significant developments in Brazil's portfolio reshuffling
Significant developments in Brazil’s portfolio reshuffling provide value crystallization and improve growth prospects Transmission Asset Rotation Strategy Celg-T region (Goiás) with strong electricity demand growth, requiring significant transmission investments Acquisition Asset Rotation Celg-T Act
Slide 15: Recurring EBITDA -1% YoY with strong Networks' results
Recurring EBITDA -1% YoY (+3% ex-forex) with CS&EM weak performance being mitigated by strong Networks’ results Recurring EBITDA(1,2) €m YoY growth, % -1% YoY (ex-forex +3%) ∆ YoY 2,528 2,511 EDPR Installed Capacity +13% YoY (3) Wind resources -5% vs. LT avg Asset rotation gains +€151m (-€49m YoY) H
Slide 16: Net Profit -2% YoY with improved financial results
Net Profit -2% YoY benefitting from improved financial results and lower minority interests; net non-recurring items at zero in 9M21 Recurring Net Profit (1) Δ YoY Reported Net Profit €m €m EBITDA 2,511 -17 +21% YoY D&A and 510 Provisions 1,104 -55 422 EBIT 1,408 -72 Net Financial Costs 396 +52 Inco
Slide 17: Net Debt mostly flat YTD
Net Debt mostly flat YTD, capex growth and temporary higher working capital offset by EDPR capital increase and hybrid bond issuances Change in Net Debt € Bn +€2.3Bn Gross Expansion Investments -€0.6Bn proceeds AR 1.7 +€0.4Bn WC on fixed asset suppliers 2.4 +€0.2Bn Forex 12.2 0.7 12.1 0.3 0.2 Penali
Slide 18: 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 free Carbon Environment by 2025 neutral 76% renewables generation in 9M21 by 2030 361 157 -54% CO2 Specific Emissions(1) vs. 2015 2015
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 8% p.a. All green ~1.2 2x by 2030 ~0.8 ~1.0 solar + wind installed capacity by 2025 >95% 20202 2023 2025 €24 Bn energy transition investment en
Slide 20: Annex
Annex Investor presentation 20
Slide 21: Superior value while keeping a solid balance sheet and low-risk profile
We will deliver superior value, while keeping a solid balance sheet and low-risk profile 2020 2023 2025 CAPEX1, € Bn/yr Step-up investment plan with renewables 3.7 4.5 4.6 +1 Bn 2025 vs. 20 focus EBITDA2, € Bn Increased results with distinctive energy 3.5 4.2 4.7 +6% CAGR 2020-25 transition profile
Slide 22: 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 that will be … consolidating leadership and reinforced… exploring growth
Slide 23: 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 24: Leading global player in offshore wind through the 50:50 JV Ocean Winds
We aim to be a leading global player in offshore wind through the 50:50 JV Ocean Winds (OW) Step-change in capacity with a global footprint… … with results already in place Installed Under construction Under development ✓ PPA/Tariff secured Pursuing greenfield development, while Project visibility f
Slide 25: We will double growth in renewables, adding 4 GW/year
We will double growth in renewables, adding 4 GW/year with clear visibility Step-up growth in renewables… … with a robust pipeline to address target additions Gross additions, GW1/yr Total gross additions, GW1 20 GW 4.6 44 >50 ~3x Pipeline announced as 3.5 of 2019 (16 GW) 44 ~3x 1.6 20 Target additi
Slide 26: Networks - Key highlights
Networks - Key highlights +xx Growth, 2020-25 ~€0.7 Bn annual organic Regulated Asset Base to EBITDA to increase by 50% 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 27: 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 e- 0.1 mobility X10 Solar DG and e- mobility 0.
Slide 28: EDP continues to ramp-up renewables pipeline
EDP continues to ramp-up renewables pipeline and has significant short-term visibility on additional growth Secured capacity and Pipeline GW >55 Active in the private market with ~60% of the secured capacity achieved through PPAs Centralized ~60% PPAs ~40% Auctions >45 4.1 GW of PPAs under negotiati
Slide 29: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
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