EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — EDP Renováveis — H1 2024 Earnings Presentation
24 slides from EDP Renewables SA's earnings presentation, Jul 26, 2024
Slide 1: 1H24 Results Presentation
1H24 Results Picture Presentation July 26th, 2024 09:30 CET | 08:30 UK / Lisbon www.edpr.com Budzyn Poland
Slide 2: Agenda
Agenda 1 Update on Strategy Execution 2 1H24 results 3 Closing Remarks 4 Annex 2
Slide 3: Update on Strategy Execution
Update on Strategy Execution
Slide 4: 1H24 marked by sound operational performance and positive developments
1H24 marked by sound operational performance and positive developments on capacity growth and asset rotation execution 1H24 Main Highlights Financial Performance • Generation +5% YoY to 18.9 TWh: +15% in North America driven by wind YoY recovery (+2% vs. LT avg. in 1H24) and good pace of net additio
Slide 5: Renewables demand growth supports strong execution on new PPA contracts
Renewables demand growth supports strong execution on new PPA contracts over 1H24, providing visibility of 2024-2026 investment plan +1.3 GW of PPAs signed YTD, closed at competitive prices supporting our >70% secured capacity >60% Evolution of PPA prices(1) Big tech (LC/MWh) ~0.5 GW EU Wind EU Sola
Slide 6: Hedged volumes for 2H24 support good visibility on full year revenues
Hedged volumes for 2H24 support good visibility on full year revenues, along with slightly improved prospects for 2025-26 wholesale prices 2024 performance supported by positive impact from 2025-26 forward prices aligned with guidance hedging strategy on average selling price assumptions presented i
Slide 7: Sound business profile in US based on strong weight on local assembled equipment
Sound business profile in US based on strong weight on local assembled equipment resilient to potential changes on import tariff policy Wind and Solar insulated from political risk in the US Our procurement strategy in US is based on high weight of US manufacturing Solar ITC and wind PTC have been e
Slide 8: Expansion Capex of €2.3bn with 84% from North America and Europe
Expansion Capex of €2.3bn with 84% from North America and Europe 1H24 Expansion Capex by region (€bn) Strong investment effort increasing +18% YoY with 4.5 GW of assets under construction 62% 13% €2.3bn 3% APAC Focus on low-risk markets as planed with North America and Europe representing 84% of the
Slide 9: Significant development in storage with 0.2 GW to be installed in 2024
Significant development in storage with 0.2 GW to be installed in 2024 and strong visibility on future revenues Battery Energy Storage Systems (BESSs) have become an important component of the global decarbonization drive given their crucial role to complement variable renewables generation Storage
Slide 10: Continued efforts to improve efficiency lead to lower operating costs per MW
EDPR’s continued efforts to improve efficiency in operations has led to lower operating costs per average MW in operation Core OPEX(1)/ Avg. MW in Operation Cost strategy set to maximize efficiency and optimize costs (€k) -8% Continue with structure simplification to leverage on EDP & 26.4 EDPR syne
Slide 11: Strong Asset rotation execution in 1H24 with proceeds of ~€1.2bn
Strong Asset rotation execution in 1H24 with proceeds of ~€1.2bn EV/MW 1H24 Asset rotation (€m/MW) Total AR Proceeds (€bn) ~0.9 ~0.4 ~1.2 ~€1.2bn total proceeds implying an EV/MW of €1.6m 2.0 on track to achieve expected proceeds for the year Avg. €1.6m 1.5 €171m of Asset rotation gains in 1H24 impl
Slide 12: 1H24 Results
1H24 Results
Slide 13: Electricity Sales +5% YoY impacted by recovery in generation
Electricity Sales +5% YoY impacted by the recovery in generation and stable average selling price Electricity Sales(1) (€m) 1H23 1H24 YoY YoY Installed Capacity GW 15.2 16.6 +10% +5% 1,145 1,087 Renewable Index Generation % 95% 100% +5% Electricity Generation TWh 18.0 18.9 +5% 552 Europe 554 -€2m Eu
Slide 14: EBITDA +26% YoY impacted by North America generation and Asset rotation gains
EBITDA +26% YoY impacted by recovery in North America generation and Asset rotation gains EBITDA 1H24 (€m) YoY +5% 171 +26% 1,145 142 (381) (118) 960 Electricity Sales Tax Equity Revenues AR Gains Core Opex Other Costs (net)(1) EBITDA +€57m +€19m +€171m -€23m -€29m +€196m -€34m from Colombia & non-c
Slide 15: Financial Results +€64m YoY driven by +€1.2bn nominal financial debt
Financial Results +€64m YoY driven +€1.2bn nominal financial debt YoY Financial Results (€m) +€64m Financial results +€64m YoY impacted by +€1.2bn of +15% 223 nominal financial debt YoY with Colombia related (28) 2 159 (33) financials of €17m 192 220 Lower cost of debt (-0.2pp) driven by €/$ re-bala
Slide 16: Net Debt at €7.5bn mainly driven by Net Expansion Investments of €1.8bn
Net Debt at €7.5bn mainly driven by Net Expansion Investments of €1.8bn Net Debt Chg. Dec-23 to Jun-24 (€bn) €2.3bn Expansion Capex and €0.1bn Financial investments offset by €0.4bn AR Proceeds net of gains +€1.7bn YTD 0.01 1.8 ~€7.2bn 1.0 0.5 considering 0.2 0.2 Italian AR closed on 7.5 July 17th 5
Slide 17: Net Profit of €210m supported by EBITDA growth
Net Profit of €210m supported by EBITDA growth partially mitigated by higher financial costs 1H24 EBITDA to Net Profit (€m) YoY +5% YoY generation along with stable prices and EBITDA 960 +€196m Asset rotation gains of €171m D&A(1) (389) (€4m) Driven by capacity additions EBIT 571 +€202m Financial Ma
Slide 18: Closing Remarks
Closing Remarks
Slide 19: Closing remarks
Closing remarks 1H24 driven by normalization of wind resources (renewable index +5pp YoY) leading to an increase of +5% YoY in generation and stable YoY avg. selling price at €61/MWh reflecting higher pricing environment in North America offset by lower prices in Europe, however backed by high porti
Slide 20: Annex
Annex
Slide 21: EDPR added ~2.9 GW with installed capacity amounting to 16.6 GW
Since last year, EDPR added ~2.9 GW with installed capacity amounting to 16.6 GW in 1H24 due to Asset Rotation impact Installed Capacity YoY Net Capacity Factor 1H24 Electricity Generation YoY (EBITDA + Equity GW) (%) (TWh) 1H23 15.2 NCF YoY 1H23 18.0 MW 27% +0.5pp 2.9 Added 0.8 34% +1pp ∆ MW 18.1 2
Slide 22: Ocean Winds: Long-term view player in the offshore wind industry
Ocean Winds: Long-term view player in the offshore wind industry Offshore projects currently under construction Moray West Noirmoutier 0.9 GW | 95% OW | COD 2025 0.5 GW | 60% OW | COD 2025 Le Treport First power has been successfully New 0.5 GW | 61% OW | COD >2025 achieved from the first series of
Slide 23: IR Contacts
IR Contacts E-mail: ir@edpr.com Phone: +34 900 830 004 Parque Empresarial ADEQUA Avda. de Burgos, 89 EDIF 1 MOD A-B 28050, Madrid - Spain EDPR Online Site: www.edpr.com Link Results & Presentations 23
Slide 24: Slide 24