Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Presentation (September 2024)
50 slides from Edp's investor presentation, September 2024
Slide 1: Investors' Presentation September 2024
INVESTORS’ PRESENTATION September 2024
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 EDP’s global presence 2 Business Strategy 3 1H24 Results 4 Appendix
Slide 4: EDP's Global presence
EDP’s Global presence We are a global company, leader in the energy sector, present in 5 regional hubs throughout different stages of the value chain % Weight on EBITDA 2023 Renewables, Clients & EM North America Iberia Rest of Europe ~70% Wind Solar Solar Energy onshore utility-scale DG management
Slide 5: Diversified portfolio balanced between networks, generation and supply, and renewables
EDP’s Global Presence EDP has a diversified portfolio, balanced between electricity networks, integrated Generation and Supply and Renewables Breakdown of expected Recurring Net Profit in 2024 ~35% (~€1.3 Bn) Electricity Networks Regulated Asset Base growth Regulated returns incentivizing investment
Slide 6: Business Strategy
@edp Business Strategy
Slide 7: 2026 targets of €5.0-€5.1bn EBITDA and €1.2-€1.3bn net profit
Business Strategy 2026 targets of €5.0-€5.1bn EBITDA and €1.2-€1.3bn net profit, with growth supported by renewables and electricity networks Recuring Net 0.9 ~1.2-1.3 ~10% Income, € Bn CAGR 2022-26 ~5.0 – 5.1 EBITDA, € Bn 4.5 ~3% ~1.6 CAGR 2022-26 Electricity Networks 1.5 ~1.0 – 1.1 Hydro, Clients
Slide 8: Focus on capital optimization and robustness of the balance sheet
Business Strategy Focus on capital optimization and robustness of the balance sheet Investment plan 2024-261 : focus on top projects via asset rotation strategy targeting €7 billion proceeds a selective and disciplined criteria in 2024-2026 Gross investments 2024-261, € Bn Net investments 2024-261,
Slide 9: Stricter investment approach focused on strong contracted cash yields
Business Strategy Under a stricter investment approach for upcoming investment decisions keeping the focus on strong contracted cash yields Investment approvals over the last 6 months continue Stricter investment approach increasing our target for supporting value creation from growth in renewables
Slide 10: Capacity additions of avg. ~3 GW/year in 2025-26
Business Strategy Support value creation while reviewing additions to avg. ~3 GW/ year in 2025-26 with 84% in Europe and NA on the back of a robust pipeline… 2024-26 Gross Capacity Additions (GW) 2024-26 Breakdown By Geography North South Europe APAC America America 8% 42% 8% ~0.9 ~0.5 ~0.3 - ~10 GW
Slide 11: Renewables demand growth supports strong execution on new PPA contracts
Business Strategy 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
Slide 12: 2026 financial targets based on electricity price assumptions aligned with forward markets
Business Strategy 2026 financial targets based on electricity price assumptions aligned with forward markets 2025-26 forward prices aligned with guidance assumptions presented in May-24 2025-26 forward electricity wholesale price Iberia €/MWh 2024 ~80% of volumes for 2024 hedged at ~€90/MWh 74 66 In
Slide 13: Investing in electricity networks, renewal of distribution concessions in Brazil
Business Strategy Investing in our electricity networks portfolio, with positive developments for the renewal of distribution concessions in Brazil Growing our regulatory asset base in electricity Positive developments in Brazil: Publication of networks decree for the renewal of distribution concess
Slide 14: Asset Rotation strategy with strong execution in 1H24
Business Strategy Pursuing our Asset Rotation strategy with a strong execution in 1H24; Wind & Solar operational execution on track to meet 2024-26 targets Asset Rotation Proceeds € Bn EV/ 1.5 2.0 Avg. Gains/Invested Capital2: Wind & Solar ~15%, MW transmission ~24% 0.41 0.4 1.7 0.9 Total AR gains o
Slide 15: Fully funded plan through 2026 with BBB debt ratios
Business Strategy Supporting a fully funded plan through 2026 with BBB debt ratios 2024-26 Organic Sources and Uses of Funds (€ Bn) Uses of cash Sources of cash Solid credit ratios, on the back of prudent investment policy and sound organic cashflow DPS floor Dividends 2.5 2024E: €0.195 2025E: €0.19
Slide 16: On track to be coal-free by 2025
Business Strategy On track to be coal-free by 2025, with significant steps taken this year EDP’s total electricity generation mix Coal Renewables Other % of coal in total revenues 4% <1% <1% 0% <1 % <1 % 6% 35% 60% 87% 99% 95% 93% 59% 21% 19% 6% 7% 1% 5% 7% 2005 2015 2023 1H24 2024 2026 Coal-free by
Slide 17: Leading the energy transition to create superior value
Business Strategy Leading the energy transition to create superior value Our commitments Key figures and targets Accelerated and sustainable growth €17 Bn 3 GW/yr 23 GW gross investment 2024-26 gross additions 2025-26 Wind & Solar capacity by 2026 ESG excellence and future-proof organization Coal fr
Slide 18: 1H24 Results
1H24 Results @edp
Slide 19: Net Profit +50% YoY growth to €775m in 1H24
Results Net Profit +50% YoY growth to €775m in 1H24, reflecting strong generation and supply business in Iberia and lower minorities in Brazil 1H24 Main Highlights Financial Performance Renewables weight on total generation output at 98% in 1H24, Recurring figures with renewables generation increasi
Slide 20: High share of renewables in generation and EU taxonomy aligned capex
Results Continuing our path to lead the energy transition: high share of renewables in total generation and EU taxonomy aligned capex EDP’s total electricity generation mix Key emissions & EU Taxonomy metrics 97.2% +20%. 30 Renewables 25 Generation, TWh TWh TWh Investments focused on (+0.2p.p. YoY)
Slide 21: Recurring EBITDA of €2.7 Bn, +8% YoY
Results Recurring EBITDA of €2.7 Bn, +8% YoY, impacted by strong hydro volumes, different timing of AR gains, mitigating the impact from coal deconsolidation Recurring EBITDA1 ,€m YoY growth, % • Integrated business YoY comparison ∆ YoY impacted by coal deconsolidation +8% (~€66m in 1H23 vs. 0 in 1H
Slide 22: Gen. & Supply EBITDA impacted by coal deconsolidation
Results Gen. & Supply EBITDA impacted by coal deconsolidation; In Iberia, lower pool prices offset by higher hydro volumes Hydro, Clients & EM Recurring EBITDA €m YoY growth, % Exc. coal Iberia 1H23 1H24 YoY -4% -10% ∆ YoY Hydro coefficient in Portugal, avg.=1 0.79 1.40 77% 977 Coal 66 879 Hydro Gen
Slide 23: Wind & Solar EBITDA +27% YoY
Results Wind & Solar EBITDA +27% YoY: ~€171m AR gains in 1H24 vs. absence of gains in 1H23 Wind & Solar Recurring EBITDA2 €m YoY growth, % Exc. AR ∆ YoY 1H23 1H24 YoY +4% Installed Capacity1, GW 15.2 16.6 +10% +27% 968 Prod. deviation vs. exp. LT Gross -5% 0% +5 p.p. Capacity Factor, % 764 171 +171m
Slide 24: Electricity Networks EBITDA +15%
Results Electricity Networks EBITDA +15% on the back of asset rotation gain from transmission deal in Brazil Electricity Networks Recurring EBITDA €m YoY growth, % Exc. AR gain Iberia 1H23 1H24 YoY +6% Return on RAB Portugal , % 5.56% 5.55% 1 bps +15% ∆ YoY 838 Regulated revenues Portugal, €m 537 56
Slide 25: Financial costs YoY and average cost of debt
Results Financial costs YoY impacted by settlement of US dollar pre-hedge in 1H23; Avg. cost of debt decreasing due to the decline of USD and BRL debt weight Net Financial Costs1 Avg. nominal debt by currency €m % +8% 443 411 46 % 58 % EUR 35 % USD 22 % 1H23 1H24 BRL 13 % 13 % 6% 6% Other Avg. Cost
Slide 26: Net debt increase reflecting expansion investments and dividend payment
Results Net debt increase reflecting the funding of expansion investments and dividend payment Change in Net Debt € Bn Net Debt/EBITDA(1) 3.3x 3.7x FFO/Net Debt(2) ~21% Full payment of ~19% annual dividend in May ‘24 17.4 17.1 0.0 0.4 15.3 1.9 1.0 0.4 0.8 Net Debt Organic CF Dividend Regulatory Net
Slide 27: High financial liquidity at €9 Bn
Results High financial liquidity at €9 Bn supported by >€7bn of available credit lines, covering refinancing needs until 2027 Financial liquidity EDP consolidated debt maturity profile1 as of 1H24, €Bn as of 1H24, €Bn Cash & Equivalents 1.9 EDP Brasil EDP SA & EDP Finance BV and Other (% of total de
Slide 28: Net Profit of €775m, +50% YoY
Results Net Profit of €775m, +50% YoY reflecting the timing of AR gains and lower minorities in Brazil post minorities-buyout Recurring Net Profit1 Recurring Net Profit €m €m Exc. AR gains Δ YoY +15% EBITDA 2,670 206 +50% 775 D&A and Provisions 858 2 517 184 AR gains EBIT 1,812 208 591 Net Profit Ex
Slide 29: Appendix
Appendix @edp
Slide 30: Superior value through EPS growth and solid dividend policy
Appendix We are delivering superior value through sustained EPS growth and a solid dividend policy with an increased floor Dividend per share (€) Attractive dividend policy Dividend yield Payout1 5.6% 6.6% 6.6% 6.2% 4.9% 3.7% 3.9% 4.1% 4.3% €0.195 in 2024-25 2 74% 72% 90% 87% 81% 90% 91% 87% 63% €0.
Slide 31: A Way for a Better Tomorrow: ESG commitments
Appendix A WAY FOR A BETTER TOMORROW All in all – our ESG commitments Ambition Goal 2023 2026 target 2030 ambition Decarbonize: for a climate-positive SBTi: Scope 1 + Scope 2, gCO2e/kWh (% vs. 2020)1 81 (-49%) 36 (-77%) 8 (-95%) world SBTi: Scope 3 , MtCO2e (% vs. 2020)1 8.1(-16%) - ~6Mn (-45%) Rene
Slide 32: Key sensitivities on net income for 2026
Appendix Key sensitivities on net income for 2026 D 2026 Net Income Impact Avg. Pool Price Spain €5/MWh ~€40m IB Hydro volume 10% ~€30m FX EUR/USD +0.10 ~€30m FX EUR/BRL +0.50 ~€30m Euribor +100bps ~€20m Investors’ Presentation 32
Slide 33: EDP Renewables
EDP Renewables EDPR
Slide 34: High quality 100% RES portfolio, diversified and LT contracted
Appendix High quality 100% RES portfolio mostly wind onshore, well diversified primarily across Europe & North America and LT contracted… Diversified portfolio with a solid generation profile Capacity by geography Generation by technology Focus on low risk markets: 86% of asset base in Europe & Nort
Slide 35: Renewable energy growth backed by increasing demand worldwide
Appendix Renewable energy growth continues to be backed by increasing demand worldwide Regulated auctions Continuous support Supportive demand Introduction of environment and to reach EU targets from cPPAs driven by social criteria on top of pricing by 2030 sustainability targets Growing 45 GW in ED
Slide 36: Asset rotation strategy supporting a fully funded plan through 2026
Appendix Asset rotation strategy supporting a fully funded plan through 2026 Gross Investments 2024-26 AR Proceeds 2024-26 Net Investments 2024-26 (€bn) (€bn) (€bn) % Gross MW Additions 30% 45% ~6%~7% Gross OW & Other €m Investments ~12 ~16% Fin. Inv. AR 469 ~300 ~47% ~12bn Gains Asset Rotation(2) ~
Slide 37: Sound business profile in US resilient to import tariff policy
Appendix 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 ha
Slide 38: Main assumptions
Appendix Main assumptions Current assumptions Pool Iberia TTF CO2 Inflation Europe % Inflation Brazil % €/MWh €/MWh €/ton Avg. IPCA / IGPM 58 61 3.7 61 58 2.4 3.3 3.5 28 29 EUR/USD EUR/BRL EUR 7Y MidSwap USD 7Y Treasuries SELIC % % % 1.1 1.1 10.1 5.6 5.9 8.5 2.5 2.4 3.6 3.5 2024 2026 2024 2026 2024
Slide 39: OW is a top offshore player globally
Appendix OW is a top 5 offshore player globally, with a diversified geographical mix in core low-risk markets Strong portfolio of secured projects indexed to inflation Contracted and inflation linked Offshore Wind, GW Contracted revenues Gross Net COD Project Technology and inflation linked Capacity
Slide 40: Integrated Generation & Supply
• Appendix Integrated Generation & Supply Investors’ Presentation 40 40
Slide 41: Hydro resources in 1H24 +40% above average
Appendix Hydro resources in 1H24 +40% above average, driving outstanding increase in hydro generation in 1H24 Hydro generation +2.7 TWh above expected and While reservoirs remain above average +2.8 TWh YoY following strong hydro resources Hydro generation in Iberia net of pumping (TWh) Reservoir lev
Slide 42: Electricity wholesale price evolution supports 2025-26 guidance
Appendix Electricity wholesale price evolution supports the delivery of our guidance in 2025-26 2025-26 forward prices aligned with guidance assumptions presented in May-24 2025-26 forward electricity wholesale price Iberia €/MWh 2024 ~80% of volumes for 2024 hedged at ~€90/MWh 74 66 Integrated gene
Slide 43: Networks
• Appendix Networks Investors’ Presentation 43
Slide 44: Investing in electricity networks, renewal of Brazil concessions
Appendix Investing in our electricity networks portfolio, with positive developments for the renewal of distribution concessions in Brazil Growing our regulatory asset base in electricity Positive developments in Brazil: Publication of networks decree for the renewal of distribution concessions 5.6%
Slide 45: Prospects for improved regulatory frameworks in Iberia from 2026
Appendix …with good prospects for improved regulatory frameworks in Iberia from 2026 onwards… Iberian market with a strong rational for higher EDP with a strong asset base in Iberia investment in electricity networks RAB 1H24 RoRAB 2024 Next regulatory period €3.0 Bn 5.5% 2026-30 Strong renewable en
Slide 46: Corporate Governance
Corporate Governance 2024
Slide 47: Dual Model of Corporate Governance
Corporate Governance Dual Model of Corporate Governance, ensuring separation of functions and specialization of supervision Number of members Corporate Entities Dual Corporate Governance Model Corporate Bodies Other Statutory Bodies • Monitor and evaluate the General management of the company and th
Slide 48: General and Supervisory Board
Corporate Governance General and Supervisory Board António Status Gender Lobo Xavier Key role linking GSB and EBD Independent Female Chairman 56% 37.5% Independent Male Non- independent 62.5% 44% Shengliang Wu Qin Guobin Zhang Hui Ignacio Herrero Ruiz Miguel Pereira Leite China Three Gorges China Th
Slide 49: Executive Board of Directors
Corporate Governance Executive Board of Directors 2024-2027 Mandate Board Tenure Gender Diversity Miguel Stilwell d’Andrade 0 to 2 Y 8 or more Y Female CEO 20% 40% 40% Male 60% 3 to 7 Y 40% Rui Teixeira Vera Pinto CFO Pereira 5 members 3-years mandate (2024-2027) Elected by shareholders, including C
Slide 50: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com Investor presentation 50
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