Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — H1 2022 Earnings Presentation
26 slides from Edp's earnings presentation, Jul 29, 2022
Slide 1: 1H22 Results Presentation
1H22 | Results Presentation Lisbon, July 29%
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: Agenda
Agenda 1 Update on Strategy Execution 2 1H22 Results 3 Closing Remarks 4 Q&A
Slide 4: Diversified portfolio provided significant recovery in 2Q22 from hydro losses
Diversified portfolio provided significant recovery in 2Q22 from hydro losses registered in the 1Q22 1H22 Key Figures Highlights Good performance on Wind & Solar, Electricity Networks, Recurring €1,994m Thermal optimization and improved Energy Management EBITDA (+19% YoY) -2.8 TWh Hydro shortfall in
Slide 5: RepowerEU plan presented in May to address energy security and affordability concerns
RepowerEU plan presented in May to address energy security and affordability concerns on top of Fit for 55 decarbonization targets RepowerEU targets imply renewables capacity growth by 2.5x, to 1.2 TW by 2030 Improvements EU Renewables1 capacity until 2030 Digitalized procedures GW Faster x2.5 Reinf
Slide 6: Entrance into German solar PV market with acquisition of development platform
Entrance into German solar PV market with the acquisition of a development platform with a portfolio of 9.4GW of projects Reinforcing EDPR’s presence in low-risk EU ..with acquisition of Kronos, a solar PV development countries, mainly Germany … platform based in Germany with a strong track record A
Slide 7: EDP reinforces positioning on RepowerEU opportunity across 12 European markets
EDP reinforces its positioning on RepowerEU opportunity, extending presence into 12 European markets covering 90% of EU Solar PV growth EDP extends its presence into 12 European markets… … representing ~90% of EU Solar PV growth expected until 2030 EDP current presence Complementary markets RepowerE
Slide 8: EDP has 53% of its 2021-25 target capacity additions committed
EDP has 53% of its 2021-25 target capacity additions committed, with record capacity under-construction at 3.2 GW Capacity Breakdown Committed renewables capacity additions 21-25 APAC 8% EDP committed capacity vs. its +20GW Europe 10% 1% South renewables capacity growth target 2021-25 America 20% 33
Slide 9: Strong global Solar Distributed Generation presence in 3 continents
Development of a strong global Solar Distributed Generation presence in 3 continents and 12 markets with 1.4GW of secured capacity Solar DG Capacity EDP aims at increasing DG capacity until 2025 GWac Secured 1.4 At EDPR: ✓ North America (C&I cross selling with Utility Scale) GW1 ✓ APAC: Leading posi
Slide 10: €0.7 Bn investment in electricity networks in 1H22
€0.7 Bn investment electricity networks in 1H22, supported by asset base expansion in Brazil and grid digitalization & resilience in Iberia Growth investment in electricity networks Inflation protection Investments (€ Bn) Rate of Return indexed to bond yields1 RoR at 4.9% in 1H22 +2x 0.7 Portugal In
Slide 11: Regulatory framework in Portugal provides stable prices for residentials
Despite high electricity wholesale price, regulatory framework in Portugal provides stable prices for residentials and continuous system debt decline Wholesale Price vs Renewables FiT Reg. Electricity Tariff components Electricity System Debt €/MWh Residentials end-user tariffs2; €Bn4 1 3 Renewable
Slide 12: ESG Recognition supported by high % of renewables in total generation
ESG Recognition supported by high % of renewables in total generation and high % of EU taxonomy aligned revenues & capex Stepping-up green leadership position… …while also being recognized by ESG performance EDP is in the top 10 of S&P’s In 1H22… Global Clean Energy Index 75% Renewable generation To
Slide 13: Financial Performance
PORTUGAL FINANCIAL PERFORMANCE se
Slide 14: Recurring EBITDA +19% YoY prompt by good performance of Wind & Solar and Networks
Recurring EBITDA +19% YoY prompt by good performance of Wind & Solar and Electricity Networks despite the penalizing Iberian hydro shortfall Recurring EBITDA(1,2) €m YoY growth, % ∆ YoY +19% YoY 1,994 1,678 +13% EDPR Installed Capacity +10% YoY excl. FX 976 +321m Wind resources +2% vs. LT avg Wind a
Slide 15: Wind & Solar EBITDA +49% YoY on outstanding top line performance
Wind & Solar EBITDA +49% YoY on the back of outstanding top line performance from base portfolio Wind & Solar EBITDA €m YoY growth, % ∆ YoY 1H21 1H22 YoY 49% YoY 976 Installed Capacity(1), GW 12.6 13.8 +10% +225m Prod. deviation vs. exp. LT Gross -5% 2% 7 p.p. 654 564 Capacity Factor, % Europe 339 E
Slide 16: Electricity Networks Recurring EBITDA +25% YoY reflecting tariff updates in Brazil
Electricity Networks Recurring EBITDA +25% YoY reflecting tariff updates in Brazil Electricity Networks Recurring EBITDA €m YoY growth, % 1H21 1H22 YoY ∆ YoY Return on RAB Portugal (1), % 4.86% 4.94% +8 bps +25% YoY 732 Return on RAB Spain, % 5.58% 5.58% 0 bps 587 256 -12m OPEX/ Supply Point Iberia(
Slide 17: Hydro, Client Solutions & EM EBITDA penalized by scarce hydro resources in Iberia
Hydro, Client Solutions & EM EBITDA penalized by scarce hydro resources in Iberia in a period of high energy prices Recurring EBITDA Hydro + CS&EM (1) € millions Iberia 1H21 1H22 YoY -34% YoY ∆ YoY Hydro resources vs. LT Avg(2) , % +11% -66% -77 p.p. 436 Hydro Generation, TWh 6.2 2.8 -3.4 Iberia 289
Slide 18: Recovery of liberalized integrated margin in 2Q22
Recovery of liberalized integrated margin in 2Q22 following lower negative impact from hydro, higher thermal generation and better energy management Risk mitigation through integrated portfolio strategy(1) € Bn 1 0.0 Weak hydro volumes, mostly in 1Q22 increased generation short position in a period
Slide 19: Net financial costs increase in 1H22 impacted by higher interest rates in Brazil
Net financial costs increase in 1H22 impacted by higher interest rates in Brazil Net Financial Costs +164% Brazil EDP excl Brazil €m +64% Avg Gross debt increased ~€2Bbn, with 170 434 almost 40% coming from FX impact 49 385 94 151 254 264 76 10 57 Avg. cost of debt in BRL up from 8.6% to 283 13.9% (
Slide 20: EDP well protected against inflationary and interest rate pressures
EDP well protected against inflationary and interest rate pressures with >70% of non-fixed revenues and ~70% of fixed rate debt EDP Revenues(1) with limited exposure to inflation Debt breakdown by rate & currency Other Potential upside from 2023 BRL onwards as hedges roll over Floating 15% 30% 100%
Slide 21: Strong asset rotation activity in 2022, secured proceeds of €3.1bn
Strong asset rotation activity in 2022, increasing secured proceeds for 2021-25 to €3.1bn, ~40% of the €8bn total proceeds target for 2021-25 Out of the 4 transactions signed for 2022, EDPR … and continues to have good prospects for the rest of managed to execute €0.6bn proceeds YTD… the year AR pro
Slide 22: Net Debt increased 22% with acceleration of net expansion investment
Net Debt increased 22% with the acceleration of Net expansion investment and annual dividend payment in 2Q22 Change in Net Debt € Bn 0.2 14.2 +€3.6 Bn Gross Expansions Investments 0.7 -€1 Bn Asset Rotation Proceeds +€0.4 Bn Forex -€0.6 Bn Regulatory Receivables 2.4 11.6 0.4 Net Debt Organic CF Net E
Slide 23: Recurring Net Profit penalized by weak hydro, higher financial costs and minorities
Recurring Net Profit penalized by weak hydro in Iberia, higher financial costs in Brazil and increase of minority interests Recurring Net Profit (1) Recurring Net Profit €m Δ YoY €m 326 301 EBITDA 1,994 +316 D&A and Provisions 807 -81 EBIT 1,187 +235 Net Financial Costs 385 -130 Income Taxes 145 +19
Slide 24: 1H22 Closing Remarks
PORTUGAL Hybrid 1H22 CLOSING REMARKS ao
Slide 25: Resilient and diversified portfolio support 2022 guidance
Resilient and diversified portfolio support 2022 guidance, reinforced confidence on 2023-25 net profit targets Key drivers Strong performance in Renewables On volumes, avg. selling price and Asset Rotation 2022 Recurring Improved thermal generation and EM Guidance Compensating hydro shortfall showin
Slide 26: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
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