Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Presentation (January 2021)
27 slides from Edp's investor presentation, January 2021
Slide 1: Investor Presentation, Lisbon, January 2021
edp Investor Presentation Lisbon, January 2021
Slide 2: Disclaimer
This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") solely for use at the presentation to be made on this date and its purpose is merely of informative nature and, as such, it may be amended and supplemented. By attending the meeting where this presentation is made, o
Slide 3: Strategy Execution
Strategy Execution
Slide 4: Significant volume of transactions closed in December 2020
Significant volume of transactions closed in December 2020: (single digit growth YoY despite COVID challenging context) (1) Recurring Net Profit excludes exceptional and non-recurring items (including extraordinary energy tax/CESE). INVESTORS PRESENTATION 4
Slide 5: Projects already secured to be built with long term contracts
Projects already secured to be built with long term contracts(1) GW; Sep-20 Increased Global Public Support By technology By geography European Union 55% emissions cut by 2030 vs. 1990 13% €750 Bn Next Generation Fund, 26% >30% contribution to climate targets 35% 22% US PTC Extension secured: 100% f
Slide 6: Selective screening process of investment projects
Selective screening process of investment projects... … achieving risk/return discipline Threshold Achieved1 Expansion Capex opportunities analyzed in 2019 at top decision-making level IRR/WACC Attractive returns approved and successful … NPV/CAPEX … in projects located in geographies Contracted … t
Slide 7: Timeline of EDP asset rotation deals 2012-2020
Timeline of EDP asset rotation deals 2012-2020:(1) Asset rotation gains €bn 0.4 asset rotation deals agreed in 2012-2020: 0.3 sold of proceeds Avg. 2019-20 BP Annual average: ~2 deals and ~0.5 GW sold assumptions 0.1 Better than expected valuations achieved in 2019-20 support positive outlook for th
Slide 8: LT Contracted Renewables Assets: Recent transactions
LT Contracted Renewables Assets: Recent transactions [EV/MW in €m] Asset rotation Viesgo renewables acquisition [EV/MW at projects’ COD in USDm] 2.4 2.1 2.1 1.6 1.7 1.1 INVESTORS PRESENTATION 8
Slide 9: Electricity generation mix, specific emissions, revenues from coal
Electricity generation mix Specific emissions Revenues from coal % gCO2/kWh % Gas(1) 8% 10% 18% 19% 340 9% Coal 34% 7% 18% 7% 231 5% 74% 64% 122 Renewables 58% 2015 9M19 9M20 <2030 2015 9M19 9M20 2030 2018 9M19 9M20 <2030 (1) Includes residual contribution from other technologies (Nuclear, CHP and W
Slide 10: ESG ratings and rankings
Global Global Rating Global Utilities Integrated Utilities Utilities (Score 4.5) (Score 71) Medium Risk Top 7% (Score 88) Utilities (Score 8,2) 2020 ranking 2020 ranking 2020 ranking 2020 ranking 2020 ranking INVESTORS PRESENTATION 10
Slide 11: Strategic plan execution highlights
87% of 7 GW target additions in renewables for 2019-22 with LT contracts R$3.7 Bn transmission investments in Brazil, 79% already executed Viesgo Acquisition: Accelerated growth in networks and renewables in Iberia >55% of the €4 Bn target of asset rotation proceeds for 2019-2022 already executed €2
Slide 12: Board diversity and tenure
Age Diversity Gender Diversity 50-55Y 40-44Y 20% 20% Female 40% 60% Male 60% 45-49Y Board Tenure 0 to 2 years 8 or more 20% 20% 60% 3 to 7 years INVESTORS PRESENTATION 12
Slide 13: Appendix
Appendix
Slide 14: 9M20 results highlights
EBITDA: -2% YoY Recovery of hydro production in Iberia and good results in energy management EBITDA Electricity demand decline YoY, Brazilian Real devaluation vs. Euro (-23%), weak wind resources Recurring Net Profit: +14% YoY Avg cost of debt -80bps to 3.2% Recurring Net Profit Reported Net Profit
Slide 15: EBITDA 9M20 breakdown
EBITDA €m; YoY growth, % ∆ YoY 2,676 2,625 -€147m Wind & Solar Weaker wind resources (-9% vs. LT avg. in 9M20) +€87m Hydro Iberia Asset rotation gains -€26m YoY (€200m in 9M20, wind offshore) Renewables 1,666 1,572 -€33m Hydro Brazil Hydro production in Iberia +62% (-3% vs. hist avg. in 9M20) Regula
Slide 16: Reported financial costs and green bonds
Reported Financial Costs Bonds issued Green bonds €m Amount Coupon Maturity Sep-19 €600m 0.38% 2026 Jan-20 (hybrid) €750m 1.70% 2080 545 527 Apr-20 €750m 1.63% 2027 19 505 95 Sep-20 USD850m 1.71% 2028 431 74 2020/21 bond maturities Amount Coupon Jan-20 USD 583m 4.13% 1Q20 (hybrid) (3) €750m 5.38% Ju
Slide 17: Change in Net Debt: Sep-20 vs. Dec-19
Change in Net Debt: Sep-20 vs. Dec-19 € bn Significant volume of transactions with financial closing before 2020YE: +36% YoY -€0.5 Bn FX impact 13.8 1.2 -1.0 -1.4 -0.4 13.0 0.7 +34% YoY 89% renewables 10% grids Brazil Net Debt Recurring Dividends to Net expansion Rights Issue Other & Net Debt Dec-19
Slide 18: Recurring Net Profit and Reported Net Profit 9M20
Recurring Net Profit 9M20 Reported Net Profit €m €m Δ YoY 460 422 EBITDA 2,647 D&A and 1,057 +47 Provisions EBIT 1,590 Net Financial Costs 448 +97 9M19 9M20 Income Taxes 249 -76 Non-recurring items (1) Non-controlling 224 +44 €m interest -€66m Extraordinary -€63m Extraordinary Energy Tax Net Profit
Slide 19: Financial liquidity and debt maturity profile
Financial liquidity as of Sep-20 EDP consolidated debt maturity profile as of Sep-20 € bn € bn EDP Brasil EDP SA & EDP Finance BV and Other 2.9 Cash & Equivalents: 2.5 1.7 1.8 Of which: 1.6 • >90% due in 2024/25 1.4 1.4 Available Credit Lines: 1.3 • >25 counterparties 1.1 Total Liquidity 2020 2021 2
Slide 20: Electricity distribution in Spain and Portugal
Electricity distribution in Spain Electricity distribution in Portugal Quality service5 High/Medium Voltage Luarca – Asturias 2017 Country-level concession up to 2044 Cantabria RAB €1.8 Bn Mieres – Asturias RoRAB6 4.85% (2020) Lugo Burgos Palencia Low Voltage 278 concessions, 92% of them expiring in
Slide 21: EBITDA from transmission in Brazil
Transmission portfolio EBITDA from transmission in Brazil R$ m 100% 203 km 11 COD 2020 85% 7 123 km COD Aug-21E 231 100% 68% 24 113 km 30 375 km COD Dec-18 COD Jul-21E 18 2018 2019 2022 77% 22% 485 km 142 km 21 COD Dec-20E Q COD Jul-21E % of completion INVESTORS PRESENTATION 21
Slide 22: Brazil: Covid account and macro context
Weak macro context, but with supportive regulation Steep BRL devaluation, mitigated by local funding & inflation update Covid Account: R$0.6bn liquidity for EDP Brasil, partial Discos regulated revenues updated to inflation (IGP-M) recovery of COVID related overcontracting costs EDP ES: +9.3% (Aug-2
Slide 23: Projects already secured
Projects already secured Projects already secured Projects already secured MW MW MW Project Name MW Region CoD Project Name MW Country CoD Country MW Status CoD Prairie Queen 199 Kansas 2019 Aventura II-V 111 Brazil 2022E Timber Road IV 126 Ohio 2019 53 Installed 2019 Boqueirão I-II 80 Brazil 2022E
Slide 24: Offshore wind projects update
PROJECT NAME TYPE CAPACITY COUNTRY UPDATE EDPR ENGIE STATUS Moray East Offshore-Fixed 950 MW Sold to JV 33.3% 23.3% U/Construction Tréport & Noirmoutier Offshore-Fixed 992 MW Sold to JV 29.5% 31.0% U/Development Moray West Offshore-Fixed 800-950 MW Sold to JV 67.0% 33.0% U/Development Wind Float Atl
Slide 25: EDP Shareholder Structure and Corporate Governance Highlights
EDP Shareholder Structure (Jan-2021) Corporate Governance Highlights China Three Gorges (PRC) 19.0% Executive Board of Directors (EBD) and General and Supervisory Board (GSB) All major corporate and strategic decisions scrutinized by the GSB after proposal of the EBD 7.2% Oppidum (Spain) 58.3% 5.1%
Slide 26: Bonds outstanding
Amount Bonds Currency Maturity Coupon Market Price (Bid) Market Yield ISIN Code (million) EDP BV Euro MTN 1 EUR 553 1/20/2021 4.125% 100.1 0.417% XS0995380580 EDP BV Euro MTN EUR 1,000 1/18/2022 2.625% 102.9 -0.18% XS1111324700 EDP BV Euro MTN EUR 600 3/23/2023 2.375% 105.6 -0.14% XS1385395121 EDP B
Slide 27: IR Contacts and Next Events
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Next Events Jan 19th: Extraordinary General Shareholders’ Meeting Feb 24th: 2020 Annual Results Apr 14th: Annual Shareholders’ Meeting 27
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