Slide 1: Investor presentation Q3 2021
Investor presentation Q3 2021 3 November 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: Highlights – Q3 2021
Robust business model and active risk management approach ensured good results despite low wind speeds and unusual market conditions Highlights – Q3 2021 • Exceptional performance by CHP plants and high earnings from gas business keeps us on track for full-year guidance despite lower wind speeds • O
Slide 4: Ørsted construction programme and pipeline
Ørsted construction programme and pipeline Gross renewable capacity MW 2,543 25,226 Offshore Onshore 2,080 920 ~22 GW Bioenergy & Other (incl. PtX) 1,142 2,368 4,688 1,714 680 2 16,539 10 GW 959 900 2,080 1,320 12,678 4,688 2,078 3,049 18,458 12 GW 9,771 7,551 Installed Hornsea 2 Greater Onshore Sol
Slide 5: Significant number of offshore wind auctions and tenders in the coming months
Significant number of offshore wind auctions and tenders in the coming months H2 2021 H1 2022 H2 2022 2022 2022 Thor tender Holland Coast West New Jersey 3 Japanese round 2 Connecticut 4 800-1,000 MW 1,520 MW ~2,400 MW ~1,400 MW >400 MW Awarded Q2 2021 Award in H2 2021 New Jersey 2 Maryland 2,658 MW
Slide 6: Low wind speeds offset by exceptional performance from CHP plants and gas business
Low wind speeds offset by exceptional performance from CHP plants and gas business Group EBITDA of DKK 3.0 bn, down DKK 0.4bn on Q3 2020 Effects impacting comparability DKKm • No EBITDA from the divested Distribution, B2C, and city light businesses • Positive accounting effect as we ceased to report
Slide 7: Net profit, net interest-bearing debt, and credit metric
Net profit, net interest-bearing debt, and credit metric RBC divestment gain Net profit Underlying net profit Cash flow and net debt FFO / Adj. net debt DKKm DKKm % 12,034 8,757 115 164 361 21,211 80 -7 12,067 11,139 -246 42 487 895 30 Jun CFO CAPEX Divest- Hybrid Lease Exchange 30 Sep Q3 2020 Q3 20
Slide 8: Financial and non-financial ratios
Financial and non-financial ratios ROCE Taxonomy-eligible KPIs Greenhouse gas emissions Safety % YTD (scope 1 & 2), g CO2e/kWh, YTD Total recordable injury rate, YTD 69 3.8 64 3.0 Revenue >65% 12.9 9.4 30 Sep 2020 30 Sep 2021 30 Sep 2020 30 Sep 2021 30 Sep 2020 30 Sep 2021 EBITDA >90% ROCE of 12.9 %
Slide 9: 2021 guidance, strategic ambition and financial guidance
2021 guidance, strategic ambition and financial guidance 2021 guidance DKKbn Strategic ambition and financial guidance EBITDA without new partnerships 15-16 Ambition for installed renewable capacity by 2030 ~50 GW Gross investments 39-41 - Offshore ~30 GW - Onshore ~17.5 GW Business unit EBITDA FY 2
Slide 10: Q&A
Q&A Earnings call DK: +45 7815 0108 UK: +44 333 300 9035 US: +1 844 625 1570 For questions, please press 01
Slide 11: Appendix
Appendix Orsted
Slide 12: Renewable capacity as of 30 September 2021
Renewable capacity as of 30 September 2021 Indicator, MW 9M 2021 9M 2020 Δ FY 2020 Installed renewable capacity The installed renewable capacity is calculated as the Installed renewable capacity 12,678 10,563 2,115 11,318 cumulative renewable gross capacity installed by Offshore, wind power 7,551 6,
Slide 13: Forecasted renewable capacity build-out
Forecasted renewable capacity build-out Global renewable energy capacity Global offshore wind capacity North American renewable capacity by technology1 excl. mainland China by technology2 GW installed GW installed GW installed CAGR 2 % biomass Americas Biomass 20 % Offshore wind +12 %/year Asia Paci
Slide 14: Offshore wind build-out plan
Offshore wind build-out plan Installed capacity MW 1,498 18,458 Under construction 1,045 920 Awarded 1,142 2,368 1,714 900 9,771 1,320 7,551 Installed Hornsea 2 Greater Decided US North- US Mid- German Greater Baltica Baltica Decided capacity Changhua (FID’ed) and East cluster1 Atlantic Portfolio3 C
Slide 15: Offshore market development – US
Offshore market development – US • Target of 3.2 GW of offshore wind capacity by 2030 target Massachusetts • Current auction ongoing for up to 1.6 GW of offshore wind capacity with bid award expected around the end of 2021 • Target of 2 GW of offshore wind capacity by 2030, of which 1.2 GW remains a
Slide 16: Offshore market development – UK and Continental Europe
Offshore market development – UK and Continental Europe • UK Government target annual build-out of 3 GW to reach 40 GW capacity by 2030, including 1 GW of floating wind by 2030 • Bids submitted for Scotwind leasing round in July 2021, results expected H1 2022 United • CfD auction to open December 20
Slide 17: Offshore market development – APAC
Offshore market development – APAC • Taiwan has met its target of awarding 5.5 GW to be commissioned by 2025 • 600 MW Greater Changhua 3 project ready for future auctions Taiwan • Draft regulation for third round auction announced with 15 GW offshore wind target to be constructed from 2026-2035 up f
Slide 18: Upcoming offshore seabed auctions
Upcoming offshore seabed auctions H2 2021 / H1 2022 H1 2022 2022 Q4 2022 / Q1 2023 H2 2023 Poland New York Bight Norway Gulf of Mexico Oregon ~ 7 GW ~ 7 GW ~ 4.5 GW TBC TBC H1 2022 H1 2022 H2 2022 H2 2023 H2 2024 Scotland O&G North Carolina California Central Atlantic Gulf of Maine Decarbonisation T
Slide 19: Hydrogen project pipeline of +3GW
Hydrogen project pipeline of +3GW Project Current Country Application Partners Additional announced potential (MW) development partnerships Westküste 100 / Raffinerie Heide, Hynamics, 1 HySCALE100 700-2,100 Holchim, +more • Ørsted and POSCO signed a Memorandum of Understanding (MoU) in May 2021 to e
Slide 20: Overview of US offshore wind federal permitting process
Overview of US offshore wind federal permitting process Planning & Analysis Leasing Site Assessment Construction & Operations BOEM1 conducts a BOEM conducts BOEM grants developer Submit COP for NOI Construction and Operations Plan (COP) process of area auctions and up to five years (not all identifi
Slide 21: Onshore build-out plan
Onshore build-out plan Installed capacity MW 518 29 4,688 Under construction 430 298 62 302 3,049 Installed Lincoln Land Haystack Kennoxhead 1 Old 300 Helena Energy Lisheen 3 Decided capacity Center1 (FID’ed) and Q3 2021 installed capacity Region MISO, IL SPP, NE Scotland, UK ERCOT, TX ERCOT, TX Ire
Slide 22: Sustainability and ESG at Ørsted
Sustainability and ESG at Ørsted Green leadership Contributing to the global goals ESG ratings of Ørsted • In 9M 2021, 89 % of our energy generation was green. We target 99 % green energy generation by 2025. Rating agency Score Benchmark Ørsted is an active and LEAD participant of • By 2025, we aim
Slide 23: ESG Performance
ESG Performance Green Share Scope 1 and 2 Emissions Scope 3 Emissions Total heat and power generation 9M 2021 Scope 1 and 2 greenhouse gas emissions, Scope 3 greenhouse gas emissions, Energy source, % g CO2e/kWh million tonnes CO2e Offshore wind Solar PV Coal Onshore wind Biomass Natural gas 3% 8% -
Slide 24: Group – Financial highlights
Group – Financial highlights FINANCIAL HIGHLIGHTS Q3 2021 Q3 2020 D FY 2020 FY 2019 D EBITDA DKKm 2,984 3,360 (11 %) 18,124 17,484 4% • Offshore 1,304 2,629 (50 %) 14,750 15,161 (3 %) • Onshore 413 304 34 % 1,131 786 44 % • Bioenergy & Other 1,206 375 222 % 2,136 1,495 43 % Operating profit (EBIT) 1
Slide 25: Offshore – Financial highlights
Offshore – Financial highlights FINANCIAL HIGHLIGHTS Q3 2021 Q3 2020 D FY 2020 FY 2019 D Wind speed (m/s), offshore wind farms EBITDA DKKm 1,304 2,629 (50 %) 14,750 15,161 (3 %) 12.5 • Sites, O&Ms and PPAs 1,822 3,012 (40 %) 15,476 13,750 13 % 10.5 10.6 10.0 9.2* 8.4 7.8 8.6 • Construction agreement
Slide 26: Onshore – Financial highlights
Onshore – Financial highlights FINANCIAL HIGHLIGHTS Q3 2021 Q3 2020 D FY 2020 FY 2019 D Wind speed (m/s), US onshore wind farms EBITDA DKKm 413 308 34 % 1,131 786 44 % • Sites 285 176 62 % 451 466 (3 %) 8.0 8.0 • Production tax credits and tax attributes 307 213 44 % 1,004 628 60 % 7.5 7.7 7.3 7.6 7
Slide 27: Bioenergy & Other – Financial highlights
Bioenergy & Other – Financial highlights FINANCIAL HIGHLIGHTS Q3 2021 Q3 2020 D FY 2020 FY 2019 D EBITDA DKKm 1,206 375 222 % 2,136 1,495 43 % • CHP plants 460 93 395 % 1,111 1,152 (4 %) • Gas Markets & Infrastructure 808 201 302 % 411 390 5% • LNG - - n.a. - (957) n.a. • Distribution, B2C, and city
Slide 28: Currency and energy exposure
Currency and energy exposure Currency exposure Q4 2021 – Q3 2026 Energy exposure Q4 2021 – Q3 2026 DKKbn DKKbn Before hedging Before hedging After hedging After hedging 73.2 65.9 19.9 18.8 17.6 15.3 1.0 0.1 -0.2 -10.5 -12.0 -5.9 GBP1 USD2 TWD2 Power Gas Oil Risk after hedging, Effect of price +10 %
Slide 29: Capital employed
Capital employed Capital employed, DKKm 9M 2021 FY 2020 9M 2020 FY 2019 Capital employed by segment Intangible assets and property and equipment 149,954 122,249 116,638 106,685 %, 9M 2021 Offshore Equity investments and non-current receivables 882 1,928 2,188 1,044 Onshore Net working capital, work
Slide 30: FFO/Adjusted net debt calculation
FFO/Adjusted net debt calculation Funds from operations (FFO), DKKm 9M 2021 FY 2020 9M 2020 EBITDA* 21,047 18,124 17,734 Change in provisions and other adjustments 72 (403) (214) Reversal of gain (loss) on divestment of assets (5,175) (805) (840) Income tax paid (1,115) (1,118) (1,300) Interests and
Slide 31: Debt overview
Debt overview Total gross debt Effective funding costs – Gross debt Maturity profile 30 September 2021, DKKbn Cost of Modified Avg. time to DKKbn debt (%) duration (%) maturity (years) Bond loans 2.9 8.1 9.6 18.2 71.9 Bank loans 0.5 0.2 2.1 Total 2.8 7.7 9.2 13.9 25% 15.3 3.8% 21% 3.1% 38.4 2.8% 2.8
Slide 32: Hybrid capital in short
Hybrid capital in short Hybrid capital can broadly be defined as funding Due to hybrid’s equity-like features, rating Accounting treatment instruments that combine features of debt and agencies assign equity content to the hybrids when • Hybrid bonds are classified as equity equity in a cost-efficie
Slide 33: Ørsted's outstanding bonds
Ørsted’s outstanding bonds Principal Green Allocated to green Avoided emissions (t CO2/year) Bond Type Issue date Maturity Face Value Coupon Coupon payments amount bond projects (DKKm) attributable to the bonds Senior Unsecured Dec. 2009 16 Dec. 2021 EUR 500m EUR 272m 4.875% Every 16 Dec. No n/a n/a
Slide 34: Financing strategy
Financing strategy At Ørsted, we have a centralised financing The financing strategy optimizes the strategy utilizing our strong balance sheet effect of a fully integrated cash pool and diverse portfolio. where cash at practically all of the The strategy supports: company’s more than 200 subsidiarie
Slide 35: Currency risk management
Currency risk management General principles • Highly certain cash flows are hedged • Cost-of-hedging is minimized by netting of exposures in the portfolio of projects, as well as use of construction contracts and debt in local currencies. Managing outright long risk • Operations: 5-year minimum hedg
Slide 36: Interest rate and inflation risk management
Interest rate and inflation risk management Assets and debt allocation Objectives of interest rate and inflation risk management Illustrative 1. Protect long-term real value of equity by offsetting interest and 100% inflation risk exposure embedded in assets by allocating debt with similar, but oppo
Slide 37: Energy risk management
Energy risk management Risk picture Hedging of open exposure • We manage energy market risks to protect Ørsted against price volatility and • Open energy exposure is reduced actively to ensure stable and robust financial ratios that support our growth strategy • Minimum hedging requirements are dete
Slide 38: 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