Orsted · OMXCOP:ORSTED
Orsted — Ørsted — Investor Day (June 2021)
85 slides from Orsted's investor day presentation, Jun 2, 2021
Slide 1: Realising our full potential as a global green energy major
Capital Markets Day 2021 Realising our full potential as a global green energy major 2 June 2021
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements, including but not limited to, the statements and expectations contained in the “Financial Outlook” section of this presentation. Statements herein, other than statements of historical fact, regarding our future results of oper
Slide 3: Agenda
Agenda Section Page Realising our full potential as a global green energy major - Mads Nipper 5 Accelerating our global offshore growth - Martin Neubert 19 Meeting our CHRO and new COO - Henriette Ellekrog & Richard Hunter 34 Scaling our onshore platform - Declan Flanagan 36 Leading in renewable hyd
Slide 4: Ørsted organisation & Executive Committee
Ørsted organisation & Executive Committee Mads Nipper Marianne Wiinholt Martin Neubert Declan Flanagan Henriette Ellekrog Richard Hunter Group President & CEO EVP & CFO CCO & Deputy Group EVP & CEO Onshore EVP & CHRO EVP & COO CEO 2021-now: Ørsted, Group 2013-now: Ørsted, EVP & 2021-now: Ørsted, CCO
Slide 5: Agenda
Agenda Section Page Realising our full potential as a global green energy major - Mads Nipper 5 Accelerating our global offshore growth - Martin Neubert 19 Meeting our CHRO and new COO - Henriette Ellekrog & Richard Hunter 34 Scaling our onshore platform - Declan Flanagan 36 Leading in renewable hyd
Slide 6: The global climate challenge
The global climate challenge Rising greenhouse gas emissions drive up average … threatening to destabilise the world we live in global temperature… Average global surface temperature relative to pre-industrial level (˚C)1 Level of additional risk due to climate change3 Global greenhouse gas emission
Slide 7: Our vision: a world that runs entirely on green energy
Our vision Let’s create a world that runs entirely on green energy
Slide 8: Future energy system
Future energy system 5 New customer landscape 2 Cross national projects and energy islands 4 Integrated smart energy systems 1 Massive renewable build-out 3 Renewable hydrogen and green fuels
Slide 9: Massive and increasing renewable market opportunities
Massive and increasing renewable market opportunities OFFSHORE ONSHORE RENEWABLE H2 & GREEN FUELS Installed capacity excl. China (GW)1 Installed capacity excl. China (GW)1 Installed electrolyser capacity (GW) Actual 2030 targets & forecasts ~1,940 ~170 100 RoW +80 91 APAC US2 x2.5-3 APAC x7 762 US +
Slide 10: Strong political support for the green transformation
Strong political support for the green transformation European Green Deal US policy change & American Jobs Plan (not yet passed into law) 55 % 50-52 % GHG reduction target by 2030 compared to 19901 reduction in carbon emissions from 2005 level by 2030, resulting from re-entry into Paris agreement 60
Slide 11: 2030 aspiration: Become the world's leading green energy major
2030 aspiration: Become the world’s leading green energy major One of the world’s largest green electricity producers Become the Global no. 1 Global top 10 A global leader in renew- world’s leading in offshore in onshore able H2 & green fuels green energy major One of the world’s largest and most va
Slide 12: Ørsted aims to reach 50 GW installed capacity by 2030
Ørsted aims to reach 50 GW installed capacity by 2030 Installed capacity OF ON Other (incl. PtX) (GW) X4 ~50 30.0 +30 12 17.5 7.6 2.4 20211 Old 2030 ambition New 2030 ambition (current) 1. 12,023 MW includes 7,551 MW offshore wind capacity, 2,415 MW onshore wind and solar PV (incl. BRI 327 MW acquir
Slide 13: Ørsted 2018 platform / Current growth platform
Ørsted 2018 platform Current growth platform Europe North America APAC Europe North America APAC 13
Slide 14: Current growth platform / Strategic choices
Current growth platform Strategic choices Europe North America APAC ▪ Increase ambition from 15 GW in 2025 to 30 GW in 2030 by accelerating annual build-out to 3 GW ▪ Expand footprint to Baltics, Nordics, East Asia and other growth markets ▪ Take leading role in construction of energy islands ▪ Buil
Slide 15: Our growth platform drives significant synergies and competitive advantage
Our growth platform drives significant synergies and competitive advantage Realise scale benefits in procurement based on industry-leading Offshore annual build-out across offshore and onshore wind Meet customer demand for integrated solutions by leveraging complementarity of generating assets and f
Slide 16: Continued strong growth in operating earnings
Continued strong growth in operating earnings Average yearly increase in EBITDA from offshore and onshore assets in operation, 2020-2027 (DKKbn, %) 35-40 ~12 % 16.9 2020 2027 Note: Assumes 50 % Ørsted ownership of future offshore wind farms (40-50 % for Japan), 100 % ownership of onshore wind farms,
Slide 17: Target spread to WACC of 150-300 bps for individual projects
Ørsted will target a range for spread to WACC of 150-300 bps for individual projects Targeted range for spread to WACC at time of bid/FID (whichever comes first) for individual projects1 (bps) 150-300 Spread to WACC Fully loaded unlevered lifecycle IRR WACC 1. The targeted range is not a hurdle rate
Slide 18: Leading sustainability ambition
Leading sustainability ambition 2025 Carbon neutral business 2040 Carbon neutral footprint No later than 2030, all projects 2030 commissioned must have net positive biodiversity impact Today Ban on landfilling of wind turbine blades 18
Slide 19: Agenda
Agenda Section Page Realising our full potential as a global green energy major - Mads Nipper 5 Accelerating our global offshore growth - Martin Neubert 19 Meeting our CHRO and new COO - Henriette Ellekrog & Richard Hunter 34 Scaling our onshore platform - Declan Flanagan 36 Leading in renewable hyd
Slide 20: 2030 forecasts continue to increase; global offshore growth to accelerate
Since last CMD, 2030 forecasts continue to increase, and global offshore growth is expected to accelerate over the next decade Offshore capacity towards 20301 Europe APAC US (GW) +21 GW p.a. 168 302 +75 % 36 96 +7 GW p.a. 61 7 10 102 25 44 24 2020 2025 2030 (current forecast) 2030 (2018 forecast) 1.
Slide 21: Ørsted has added 4.5 GW bringing firm capacity to 17.3 GW
Ørsted has added 4.5 GW bringing firm capacity to 17.3 GW, including multi-GW awards in new offshore markets US and Poland Growth in Ørsted firm capacity1 4 projects awarded and 5 matured into next phase (GW) since 2018 CMD In operation Under construction Awarded / contracted • Sunrise Wind (0.9 GW)
Slide 22: Market leading portfolio offers significant substantiated and opportunity pipeline
Ørsted’s market leading portfolio offers a significant substantiated and opportunity pipeline Portfolio across regions and Ørsted offshore capacity Firm capacity1 Substantiated pipeline2 Opportunity pipeline3 Pre-2030 expected COD (GW) Total platform UK & Ireland Continental Europe North America (8
Slide 23: New 2030 offshore growth ambition of 30 GW requires adding 12.7 GW
Ørsted’s new 2030 offshore growth ambition of 30 GW requires adding 12.7 GW Installed capacity doubles to 2025 and again by 2030 12.7 GW capacity to be added to reach 2030 ambition Installed capacity (GW) Installed capacity (GW) 2x +3 GW installed p.a. between 2025 and 2030 30 30 12.7 2x 17.3 15 7.5
Slide 24: Well positioned to meet the 30 GW ambition while focusing on value creation
Ørsted is well positioned to meet the 30 GW ambition while maintaining its focus on value creation Ørsted has strong pipeline to Growing market enables Ørsted to Broad opportunity pipeline allows capture the capacity be selective focus on growth & value creation Ørsted capacity (GW) Global capacity1
Slide 25: Long-term focus ensures strong growth platform beyond 2030
Ørsted’s long-term focus ensures a strong growth platform beyond 2030 across both existing and new markets Ørsted has a clear approach for long-term project Ørsted is developing key opportunities with development concrete short- and long-term potential Denmark: Strong commitment to Danish market, in
Slide 26: Second-to-none offshore wind platform enables cost leadership
Ørsted’s second-to-none offshore wind platform enables cost leadership Examples of using scale for cost leadership +40 projects across the lifecycle +1,500 spinning turbines Cost synergies from developing, constructing and operating in clusters +3,000 skilled employees globally 4 regions Procurement
Slide 27: Outstanding offshore EPC track record
With an outstanding offshore EPC track record, Ørsted is well positioned to deliver on increased build-out ambitions Project delivered on time and on budget Minor delays or budget deviations1 2013 installed baseline (GW) 2.1 West of Duddon Sands (2014) 0.4 In-house capabilities to deliver on time an
Slide 28: Strong in-house EPC competencies scale build-out to 3 GW per year
Strong in-house EPC competencies allow Ørsted to efficiently scale build-out to deliver 3 GW globally per year Unique in-house EPC model to Supplier engagement model to Value-creating local content innovate and optimise wind farm scale new technology and secure combined with best-in-class design sup
Slide 29: Ørsted is a catalyst in the green transition through innovation
Ørsted is a catalyst in the green transition through commercial and technical innovation Ørsted offshore wind capacity and key milestones COD on first US & APAC large-scale assets Cumulative actual and forecasted capacity (GW) 2019: Hornsea 1 world’s 2021: SeaH2L vision Buildout of ~7 GW largest off
Slide 30: Bold steps to develop integrated energy solutions
Ørsted is taking bold steps to develop integrated energy solutions, core to a world that runs entirely on green energy Bornholm and North Sea will be two of the world’s SeaH2Land will be one of world’s largest renewable first energy islands H2 plants and will be powered by offshore wind New offshore
Slide 31: Leading partnership model and portfolio
Leading partnership model and portfolio Largest offshore CPPA portfolio since 2018 Example key partners (not exhaustive) Capacity contracted since 20181 (GW) ~1.4 Peer #1 ~0.4 Financial Offshore wind Energy transition Peer #2 ~0.4 partners co-development co-development partners partnerships ▪ Repeat
Slide 32: Ørsted is a decarbonisation partner to governments
Ørsted is a decarbonisation partner to governments Our market and project development approach Supporting Polish government in realising RES ambition Poland offshore capacity and targets (GW) First mover – shaping new offshore wind Firm capacity Government targets markets Support local economic and
Slide 33: Ambition and ability to accelerate global offshore growth
Ørsted has the ambition and ability to accelerate global offshore growth and continue to lead the industry forward Ørsted has a unique platform for growth and has set an ambition of 30 GW installed by 2030, remaining the indisputable leader in offshore wind The offshore wind industry’s largest concr
Slide 34: Agenda
Agenda Section Page Realising our full potential as a global green energy major - Mads Nipper 5 Accelerating our global offshore growth - Martin Neubert 19 Meeting our CHRO and new COO - Henriette Ellekrog & Richard Hunter 34 Scaling our onshore platform - Declan Flanagan 36 Leading in renewable hyd
Slide 35: Meeting our CHRO and new COO
Meeting our CHRO and new COO Henriette Ellekrog Richard Hunter EVP & CHRO EVP & COO 35
Slide 36: Agenda
Agenda Section Page Realising our full potential as a global green energy major - Mads Nipper 5 Accelerating our global offshore growth - Martin Neubert 19 Meeting our CHRO and new COO - Henriette Ellekrog & Richard Hunter 34 Scaling our onshore platform - Declan Flanagan 36 Leading in renewable hyd
Slide 37: Since 2018, the Onshore business has grown significantly
Since 2018, the Onshore business has grown significantly Onshore growth since 2018 Capacity in operation and under construction (GW)1 Acquired LCE in 2018 to enter US 4.7 onshore market 0.4 Established as a leading US onshore developer 3.5 Diversified technology into solar PV and storage 0.8 Expande
Slide 38: Engine in place to deliver on our growth ambition
Engine in place to deliver on our growth ambition Onshore business as of CMD 2021 (% of total) Mobilising capital at Operating in growing set of Building a balanced portfolio scale markets across onshore wind and solar PV Europe ERCOT - South & Solar PV & Houston storage ~DKK 4.7 GW 4.7 GW 35 bn1 SP
Slide 39: New 2030 ambition of 17.5 GW
New 2030 ambition of 17.5 GW Capacity additions to 2030 (GW) Delivering ~1.5 GW of additional 17.5 capacity annually 2-3 Growing the portfolio towards a ~50:50 wind and solar PV capacity mix 10.0 4.7 Continuing to expand onshore position in Europe Delivering growth via balance of Operational Substan
Slide 40: Customers want a mix of technologies; solar PV fastest growing
Customers want a mix of technologies with solar PV expected to be the fastest growing technology Customers increasingly demand solar PV CPPAs Solar PV with largest forecasted capacity growth Contracted capacity (%)1 US installed capacity build-out, 2020-30 (GW)1 ~150 30 % 60 % ~75 70 % 40 % ~25 Towa
Slide 41: Proven track record of creating value; shift portfolio towards solar
Ørsted has proven track record of creating value and will gradually shift portfolio towards solar Solar PV and onshore wind deliver attractive returns Evolution of Ørsted onshore portfolio Representative spread to WACC (bps)1 Cumulative capacity (GW) ~1.5 GW annual additions 17.5 Average from 2.1 25
Slide 42: Multi-technology makes us a better developer
Multi-technology makes us a better developer Case study - Helena Energy Center (Texas) Hybrid onshore wind and solar PV Optimised capacity factors aligned to peak value hours Solar PV Onshore wind Production (MW)1 Illustrative demand curve ▪ 268 MW of onshore wind co-located with 250 MW of solar PV
Slide 43: Europe entry is a complement to US onshore portfolio
Europe entry is a complement to US onshore portfolio Strong growth in Europe Ørsted can create value in Europe Europe offers attractive project 2021-30 capacity additions Onshore wind power spread to characteristics (GW)1 WACC (bps)2 Average yearly growth 2021-2030 Tend to have higher levels of 9% 1
Slide 44: Development-focused culture, but we can also buy well
Development-focused culture, but we can also buy well We deliver value across growth approaches Spread to WACC (bps)1 % of total capacity developed ~75 % of current onshore capacity is self-developed 75 % 25 % Ørsted has gained strong execution and integration capabilities 250-350 200-300 Ørsted wil
Slide 45: A portfolio management approach to offtake
A portfolio management approach to offtake Portfolio offtake overview Key features of our offtake portfolio (% of generation) Merchant ▪ Since last CMD PPA pricing has increased by 5-10 %, while we have also increased contract duration2 ▪ Ongoing innovation on contract terms – adding more upside cap
Slide 46: We have a strong competitive basis for growth
We have a strong competitive basis for growth Proven ability to deliver growth and value in Distinct capabilities enabling acceleration and competitive market execution of further growth Established top 5 US onshore developer in terms of ‘Greenfield’ development culture building on annual capacity a
Slide 47: Journey from here: Strong engine and attractive pipeline
Journey from here: Strong engine and attractive pipeline in place We have achieved the momentum needed to deliver this plan US will remain our core, but we will continue to be ambitious globally, when it’s the right ‘Fit’ ‘Development Culture’ is central to how we think, but expect us to continue to
Slide 48: Agenda
Agenda Section Page Realising our full potential as a global green energy major - Mads Nipper 5 Accelerating our global offshore growth - Martin Neubert 19 Meeting our CHRO and new COO - Henriette Ellekrog & Richard Hunter 34 Scaling our onshore platform - Declan Flanagan 36 Leading in renewable hyd
Slide 49: Renewable hydrogen and green fuels key to the future energy system
Renewable hydrogen and green fuels will be key elements in the energy system of the future 3 Renewable hydrogen and green fuels
Slide 50: Renewable hydrogen market is rapidly expanding
Renewable hydrogen market is rapidly expanding and Ørsted will continue efforts to become a global leader 2030 renewable hydrogen electrolyser capacity (GW) 2021 2030 targets and forecast Continue efforts to become a global leader 100 in renewable hydrogen and green fuels 91 +80 RoW Execute and expa
Slide 51: Ørsted has a strong starting point
Ørsted has a strong starting point Extensive experience in Synergies with global renewable Proven partnership scaling up new technologies generation portfolio approach ▪ Proven track record of scaling new ▪ Global renewable portfolio with ▪ Proven ability to work with renewable technologies large po
Slide 52: Clear offtake focus and strategic approach
Clear offtake focus and strategic approach Fossil H2 substitution New renewable H2 application Focus offtake sectors Strategic approach – building on strong Ørsted starting point ▪ Establish and mature concrete projects in focus sectors and work with global offtake partners on identifying scale-up o
Slide 53: Lean forward into selected value chains
Ørsted will lean forward into selected value chains to drive deep decarbonisation Ørsted value chain focus for renewable hydrogen and green fuels Ørsted current Ørsted will lean into selected renewable H2 focus and green fuel value chains OEM Dispatch Potential Renewable further Renewable Large-scal
Slide 54: Strong concrete project pipeline across sectors and markets
Strong concrete project pipeline across sectors and markets Project Main partners Offtake Current potential Example of funding paths (MW)1 Green Fuels for ▪ Maersk, SAS, CPH Airport, Denmark DFDS, DSV4 1,300 ▪ IPCEI10 status targeted for major projects unlocking EU and SeaH2Land ▪ Yara, ArcelorMitta
Slide 55: Project deep-dive: Westküste 100 / HySCALE100
Project deep-dive: Westküste 100 / HySCALE100 Project description and vision Current project status Renewable hydrogen consortium in North ✓ Joint vision established with partners Germany (Schleswig-Holstein) ✓ 10-partner consortium established with Refinery Heide, EDF Hynamics, Fachhochschule Westk
Slide 56: Well positioned to become a global leader in renewable hydrogen
Ørsted is well positioned to become a global leader in renewable hydrogen and green fuels Ørsted has the ambition to become a global leader in renewable hydrogen and green fuels Ørsted has significant synergies with large renewable assets at global scale Ørsted’s approach to establish, mature and sc
Slide 57: Agenda
Agenda Section Page Realising our full potential as a global green energy major - Mads Nipper 5 Accelerating our global offshore growth - Martin Neubert 19 Meeting our CHRO and new COO - Henriette Ellekrog & Richard Hunter 34 Scaling our onshore platform - Declan Flanagan 36 Leading in renewable hyd
Slide 58: Well positioned to capture significant market growth opportunities
Ørsted is well positioned to capture significant market growth opportunities The green We see massive Our ambition is to We are strongly transformation of the growth opportunities become the world’s positioned to deliver energy system is over the next decade leading green energy on our ambition acce
Slide 59: Reduced emissions by 87% since 2006
Reduced emissions by 87 % since 2006 – fully on track to become carbon neutral by 2025 Ørsted CO2 emissions (Scopes 1 & 2) (g CO2e/kwh) -87 % -98 % 462 58 Carbon neutral1 <10 2006 2020 2025 ambition 1. Up to 10 g CO2e/kwh managed through Gold Standard Offsets 59 Source: Ørsted FY 2006 Sustainability
Slide 60: Offshore wind has 99% lower lifecycle emissions than coal
Power produced from offshore wind have 99 % lower lifecycle emissions than from coal Lifecycle emissions (g CO2e/kwh) -99 % 900 Primarily supply chain emissions 5-10 Coal fired Offshore power plant1 wind farm2 1. IEA Emission factors 2019 - estimates consider world average CO2 emissions per kWh elec
Slide 61: Commitment to protect biodiversity in renewables build-out
Strong commitment to protect biodiversity in renewables build-out No later than 2030, all projects commissioned must have net positive biodiversity impact 61
Slide 62: Agenda
Agenda Section Page Realising our full potential as a global green energy major - Mads Nipper 5 Accelerating our global offshore growth - Martin Neubert 19 Meeting our CHRO and new COO - Henriette Ellekrog & Richard Hunter 34 Scaling our onshore platform - Declan Flanagan 36 Leading in renewable hyd
Slide 63: On track to deliver on our 2018 CMD guidance
Ørsted is on track to deliver on our 2018 CMD guidance CMD 2018 guidance Target Status Total CAPEX spend, 2019-2025 DKK 200 bn ✓ Unlevered lifecycle IRR from competitive offshore wind tenders1 7.0-8.0 % ✓ Average share of EBITDA from regulated and contracted activities, 2019-2025 ~90 % ✓ Average ROC
Slide 64: Significant step up in green growth investments
Significant step up in green growth investments Yearly investments will increase ~50 % Green growth investments increasing to DKK ~450 bn Gross investment per year (DKKbn)1 Gross investment and capital allocation 2020-27 (DKKbn) ~100 ~450 ~50 % ~45 ~350 Onshore ~20 % ~30 Onshore Offshore & Offshore
Slide 65: DKK 450 bn green growth investments funded by four main sources
DKK 450 bn green growth investments funded by four main sources Funding composition of green growth investments Key capital allocation priorities remain Gross investment 2020-2027 (DKKbn) Maintain existing credit rating of BBB+/Baa1 ~450 Honor dividend commitment ~30 % Invest in value-creating green
Slide 66: The partnership model is a flexible and proven funding source
The partnership model is a flexible and proven funding source The farm-down model will be utilised to support our 50 GW ambition Recent transactions of offshore wind farms Borssele 1 & 2 and Greater Changhua 1 confirm very high investor interest Updated guidance metrics (EBITDA CAGR and ROCE) assume
Slide 67: Balance sheet funding model reduces financing costs and enhances scalability
Ørsted balance sheet funding model reduces financing costs and enhances scalability Funding composition of green growth investments Benefits of Ørsted’s balance sheet financing model A A Balance sheet financing All debt is supported equally No subordination of debt Debt Lower financing costs (around
Slide 68: Ørsted funding model reduces risk to equity
Ørsted funding model reduces risk to equity Diverse Ørsted portfolio reduces equity risk and cost Higher leverage yields more volatile equity returns of equity compared to single asset Illustrative – relative size of cost of equity Illustrative – sensitivity of equity IRR to changes in unlevered pro
Slide 69: Continued strong value creation
Continued strong value creation Targeted range (bps) for spread to WACC at time of bid/FID (whichever New guidance consistent with comes first) for individual projects1 implied value creation spread in Illustrative - IRR bridge previous guidance Levered project- -• No leverage -• No inclusion of -•
Slide 70: WACC approach ensures robust risk-adjusted returns
WACC approach ensures robust and competitive risk-adjusted returns Ørsted WACC approach Risk captured in WACC Market conform CAPM approach Technology risk Differentiated technology risk captured through beta Differentiated add-on for political and WACC regulatory risk Add-on of up to 250 bps for mer
Slide 71: Continued strong return on capital employed
Continued strong return on capital employed Average return on capital employed (ROCE) (%) Illustrative 11-12 % ~10 % CMD 2018 guidance Partnerships Increase in green CMD 2021 guidance (2019-2025) growth investments (2020-2027) 71
Slide 72: ~12% EBITDA CAGR with high certainty to 2027
~12 % EBITDA CAGR with high degree of certainty to 2027 Average yearly increase in EBITDA from offshore and onshore assets in operation, 2020-2027 (DKKbn, %) 35-40 ~12 % ~85 % of 2027 EBITDA 16.9 already in operation, under construction or awarded pipeline 2020 2027 Note: Assumes 50 % Ørsted ownersh
Slide 73: High visibility on future earnings
High visibility on future earnings Offshore wind farms – Average subsidy/PPA lifetime Key metrics (Ørsted ownership, GW) 0 In operation ~15 years 1 Under construction Awarded 2 3 Average remaining subsidy lifetime 4 Projects in operation, under construction and awarded. Similar duration as at CMD 20
Slide 74: What happens to the return if inflation increases?
What happens to the return if inflation increases? Illustrative example when investment is in 2021 and return in 2022 Real return is exposed to inflation risk Real return is protected from inflation (DKK) (DKK) Return Fixed Nominal Indexation Return Inflation-indexed Real return at 0 %, when inflati
Slide 75: We actively manage the 35% inflation-exposed revenue
We actively manage the 35 % of Ørsted’s inflation-exposed revenue 2021-2030 revenue from operational, under construction and awarded assets before debt (%) 100 % 55 % 10 % 35 % Total revenue Inflation-indexed Merchant Fixed nominal Contracts: UK ROC and CfD, Bioenergy, Markets, Subsidised and hedged
Slide 76: For the 35% fixed nominal, the majority has been de-risked
For the 35 % fixed nominal, the majority has been de-risked 2021-2030 revenue from operational and awarded assets (% of 2021-2030 revenue) Derisked 35 % 15 % Fixed nominal Duration-matched Derivatives1 Net inflation risk cashflows debt and hybrids from assets 76 1. Includes interest rate swaps, cros
Slide 77: NPV of inflation-indexed revenue protected against interest rate increases
NPV of inflation-indexed revenue is protected against interest rate increases if long-term correlation prevails 10-year RPI break-even inflation rate and 10-year nominal interest rate 10Y Nominal (LHS) 10Y RPI break-even (RHS) Nominal % RPI % 14 Interest rates have been kept 9 low by Central Bank as
Slide 78: Debt issuances aim at optimal currency match with projected FFO
Debt issuances aim at optimal currency match with projected FFO Current and planned debt issuances towards 2025 (%) EUR 10 % EUR 10-20 % GBP 50 % GBP 35-50 % USD 25 % USD 20-30 % TWD 10 % TWD 10-15 % Other 5 % FFO Adjusted net debt1 2025-2035 2025 78 1. Debt and 50 % of hybrids net of structural liq
Slide 79: Raw steel makes up 4-7% of CAPEX for a typical project
Raw steel makes up 4-7 % of CAPEX for a typical Risk exposure substantially managed – with project constantly evolving mitigation strategies Typical project CAPEX composition (%) Ørsted has locked in prices with suppliers early thanks to strong relationships, foresight and procurement flexibility en
Slide 80: Pro-actively managing key risks and exposures
Ørsted is pro-actively managing key risks and exposures We have de-risked the majority of our fixed nominal revenue through debt, hybrids and derivatives NPV of inflation-indexed revenues is protected against interest rate increases if long-term correlation prevails New debt issuances in the next 5
Slide 81: We will continue to deliver strong growth and value creation
We will continue to deliver strong growth and value creation 2030 ambition Spread to WACC EBITDA ROCE Installed capacity Targeted range2 at time of bid/FID3 CAGR 2020-20274 Average ROCE (GW) (bps) (DKKbn, %) (%) OF ON Other (incl. PtX) ~12 % ~50 35-40 11-12 % ~10 % 150-300 +30 16.9 12 WACC 2021 CMD
Slide 82: Agenda
Agenda Section Page Realising our full potential as a global green energy major - Mads Nipper 5 Accelerating our global offshore growth - Martin Neubert 19 Meeting our CHRO and new COO - Henriette Ellekrog & Richard Hunter 34 Scaling our onshore platform - Declan Flanagan 36 Leading in renewable hyd
Slide 83: Why Ørsted is strongly positioned to realise global potential
Why Ørsted is strongly positioned to realise global potential • The offshore wind industry’s largest concrete development pipeline with high quality growth opportunities based on proprietary seabed rights and global development organisation on the ground in all offshore regions • Offshore cost leade
Slide 84: Disclosure summary
Disclosure summary Strategic ambition and financial guidance Additional disclosure Ambition for installed renewable capacity Total CAPEX spend, 2020-2027 DKK ~350 bn ~50 GW by 2030 - Offshore (incl. Hydrogen) ~80 % - Onshore ~20 % ~12 % Average yearly increase in EBITDA from offshore DKK 35-40 bn Of
Slide 85: Investor Relations contacts
Allan Bødskov Andersen Rasmus Hærvig Head of Investor Relations Senior Manager alban@orsted.com rakol@orsted.com Alex Morgan Sabine Lohse Henriette Stenderup Lead Investor Relations Officer Senior Investor Relations Officer IR Coordinator alxmo@orsted.com sablo@orsted.com hnste@orsted.com