Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — H1 2021 Earnings Presentation
26 slides from Edp's earnings presentation, Jul 30, 2021
Slide 1: 1H21 Results Presentation
1H21 Results Presentation Lisbon, 30 July 2021
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") Forward-looking statements include statements regarding: objectives, goals, strategies, solely for use at the presentation to be made on this date and its purpose is merely of outlook and growth prospects;
Slide 3: 1H21 Highlights: Delivery of Value Accretive Growth in the Energy Transition
1H21 Highlights: Delivery of Value Accretive Growth in the Energy Transition 1H21 Key Figures(1) Highlights Gross €1.6 Bn 3.6 GW(4) renewables added in 1H21 + Capacity U/C Investments(2) (+29% YoY) Renewables Asset Rotation deals at attractive valuations (new deals announced, €1.9 Bn proceeds) Elect
Slide 4: We have accelerated growth and expanded to new geographies across different technologies
We have accelerated growth and expanded to new geographies across different technologies Accelerated & sustainable Continued accelerated growth in …entrance into new markets with regulatory growth renewables… stability & high growth prospects +2.1 GW of Wind & Solar Gross (1) Strong execution capaci
Slide 5: We have 6.7 GW capacity additions secured for 21-25 while maintaining disciplined investment criteria
We have 6.7 GW capacity additions secured for 21-25 while maintaining a disciplined investment criteria Accelerated & sustainable growth 64% of Capacity Secured for 2021-23 …while maintaining a selective and additions… disciplined investment approach GW Target Actual 6.7 0.3 IRR/WACC >1.4x ~1.5x 2.5
Slide 6: We have a policy of contracting major equipment upfront at fixed price
We have a policy of contracting major equipment upfront at fixed price mitigating concerns on capex cost inflation Accelerated & sustainable growth Major equipment Fixed price with no commodity risk for EDPR ~85% fully contracted(1) Major equipment partially Mostly for 2023 CODs, for which prices ar
Slide 7: We are delivering on Asset Rotation execution with €1.9 Bn of proceeds secured
We are delivering on Asset Rotation execution with €1.9 Bn of proceeds secured at attractive multiples Accelerated & sustainable growth EV/MW 1.7 1.25 1.6 €m ~25% €8 Bn target €1.9 Bn Gain €101m Gain/MW €250k €0.5 Bn On track +€300m Bright Stalk & Indiana Crossroads Wind Riverstart Indiana Crossroad
Slide 8: We continue to witness a policy environment highly supportive of the energy transition
We continue to witness a policy environment highly supportive of the energy transition Accelerated & sustainable growth April-21 Path to 100% carbon-free electricity by 14-Jul EU Fit for 55 legislative package focusing 2035 in cutting emissions by at least 55% vs. 1990 levels, until 2030 June-21 ITC
Slide 9: Strong operational performance in Networks, on track to crystalize value
We are delivering strong operational performance in Networks, on track to crystalize value in a high-quality assets’ portfolio Accelerated & sustainable growth Strong performance in Network driven by Working on an Asset Rotation business growth, efficiency & digitalization model in Transmission in B
Slide 10: We continue to accelerate services penetration in Client Solutions
We continue to accelerate services penetration in Client Solutions leveraging on our customer portfolio Accelerated & sustainable growth Maximizing value of … scaling up footprint on new services… existing portfolio… 1H20 1H21 Services contracts %(1) +5 p.p. Solar DG 1.7x Cumulative contracted PV, M
Slide 11: We continue to reinforce our assets' portfolio towards the energy transition
We continue to reinforce our assets’ portfolio towards the energy transition: Renewables, Networks & Clients EDP, EDPR & EDP Iberia(1) Performance Main Iberian Assets at EDP Rebased post-Strategic Update (ex-EDPR & EDPB) Hydro Iberia >40% with pumping Value of flexibility & cash generation 5.5 Dec-1
Slide 12: 1H21 Results
1H21 Results 20p
Slide 13: Recurring EBITDA -6% YoY (-1% ex-forex)
Recurring EBITDA -6% YoY (-1% ex-forex), US RES penalized by ERCOT event/ load factors & weak EM partially offset by stronger Networks Recurring EBITDA(1,2) €m YoY growth, % -6%YoY (ex-forex -1%) ∆ YoY 1,791 EDPR Installed Capacity +10% YoY (3) 1,678 Wind resources in US -6% vs. LT avg Asset rotatio
Slide 14: Wind & Solar EBITDA -18% YoY impacted by ERCOT event and wind conditions in the US
Wind & Solar EBITDA -18% YoY impacted by ERCOT event and wind conditions in the US Wind & Solar EBITDA €m YoY growth, % -18% YoY (ex-forex -13%) 1H20 1H21 YoY Installed Capacity(1), GW 11.4 12.6 +10% 793 Prod. deviation vs exp LT Gross -6% -5% +1 p.p. 654 Capacity Factor, % Europe 455 -26% 339 Elect
Slide 15: Hydro recurring EBITDA up by 22%
Hydro recurring EBITDA(1) up by 22%, prompted by strong hydro resources in Iberia and tax reversal in Spain Hydro Recurring EBITDA(1) €m YoY growth, % 1H20 1H21 YoY +22% YoY (ex-forex 27%) Hydro Production(2,3), TWh 5.5 6.1 +10% 353 Hydro resources vs. LT Avg(4) , % -4% +11% +15 p.p. 289 Avg selling
Slide 16: Electricity Networks Recurring EBITDA +33% YoY
Electricity Networks Recurring EBITDA +33% YoY with the integration of Viesgo, OPEX savings and positive developments in Brasil Elec. Networks Recurring EBITDA(1) €m YoY growth, % 1H20 1H21 YoY +33% YoY Return on RAB Portugal (2), % 4.86% 4.76% -11 bps (ex-forex 41%) 587 Return on RAB Spain, % 6.00%
Slide 17: Client Solutions & EM Recurring EBITDA penalized by strong increase of energy prices
Client Solutions & EM Recurring EBITDA(1) penalized by strong increase of energy prices and negative MTM of hedging contracts Recurring CS&EM EBITDA(1) €m % Expected Output Iberia(2) hedged YoY growth, % Higher energy sourcing costs Negative MTM of hedging contracts ~57 ~50 Very strong EM performanc
Slide 18: OPEX cash recurring -3% on a like-for-like base
OPEX cash recurring -3% on a like-for-like base (ex-growth) as we continue to drive efficiency across the Group OPEX Cash Recurring (ex-growth) €m Key Highlights YoY growth, % Higher headcount in Renewables and Clients services (+199 -3% Like-for-Like YTD) more than compensated by a leaner organizat
Slide 19: Net financial costs decline in 1H21 due to lower cost of debt
Net financial costs decline in 1H21 due to lower cost of debt, successful cash tender offer for outstanding debt to impact 2H21 Avg. Cost of Net Financial Costs(1) % Debt(2) €m ~20bp 3.3% 3.1% End of June Cash tender offer for outstanding debt instruments (€647m) 368 -10% 73 Proactive liability mana
Slide 20: Net Debt increase mostly explained by cash capex & working capital
Net Debt increase mostly explained by cash capex & working capital optimization in the context of high financial liquidity Change in Net Debt (1) € Bn +€0.4Bn Reg. Receivables +€0.2Bn FX effect +€1.6Bn Gross Investments -€0.5Bn proceeds AR 1.8 1.8 +€0.9Bn WC on fixed asset suppliers 13.2 0.5 12.2 0.
Slide 21: Net Profit +9% benefitting from improved financial results and lower taxes
Net Profit +9% benefitting from improved financial results and lower taxes and positively impacted by non-recurring items Recurring Net Profit (1) Δ YoY Reported Net Profit €m €m EBITDA 1,678 -113 9% YoY D&A and 343 726 -26 Provisions 315 EBIT 952 -139 Net Financial Costs 254 +57 Income Taxes 164 +8
Slide 22: On ESG we have been 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 Carbon Environment free neutral 81% renewables generation in 1H21 by 2025 by 2030 361 157 -64% CO2 Specific Emissions(1) vs. 2015 131
Slide 23: Closing Remarks
Closing Remarks cop
Slide 24: We reiterate our positive outlook for 2021 YE
We reiterate our positive outlook for 2021 YE as we continue focused on execution and delivering results Guidance 2021YE Highlights Wind & Solar Asset Rotation gains (>€300m) Recurring ~€3.7 Bn EBITDA Ramp-up in Renewables deployment Networks annual tariff updates in Brazil (Aug-21 and Recurring Net
Slide 25: 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 1H21 €24 Bn CAPEX in energy transition(1) €1.6 Bn (94% in RES + Networks) 6.7GW secured (34%) with 3.6 GW 20 GW gross additions(1) added YTD+U/C €8 Bn asset rotation ~€1.9 Bn sign
Slide 26: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
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