Slide 1: Investor presentation Q3 2023
Investor presentation Q3 2023
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements which include projections of our short- and long-term financial performance and targets as well as our financial policies, including but not limited to, the statements and expectations contained in the “Financial Outlook” secti
Slide 3: We have ceased the development of Ocean Wind 1 and Ocean Wind 2
We have ceased the development of Ocean Wind 1 and Ocean Wind 2 as part of ongoing review of US offshore wind portfolio Ceased the development of Ocean Wind 1 (1,100 MW) and Ocean Wind 2 (1,148 MW) • Impairment of DKK 19.9 bn as part of Q3 2023 • Currently estimated provision of approximately DKK 8-
Slide 4: Total impairment of DKK 28.4 billion
Total impairment of DKK 28.4 billion Supply chain Total impairments Upside to business cases from • Adverse impacts relating to supply chains Q3 2023, DKKbn USD interest rate hedges, amounting to DKK ~ 4.5 bn1 • Further supplier delays impacting Ocean Wind 1 project schedule and not reflected in imp
Slide 5: We are taking actions to improve our capital structure
We are taking actions to improve our capital structure Capital structure significantly challenged by adverse FFO/adjusted net debt developments • Short-term negative impact from ceased project developments • Continued higher interest rate level assumed to negatively affect future divestment proceeds
Slide 6: Strong operations and underlying earnings in Q3 2023
Strong operations and underlying earnings in Q3 2023 Financials • Q3 2023 earnings composition reflects the strength of our operational portfolio, with underlying EBITDA up by more than 70 % • Strong performance for the 9M 2023 driven by strong Offshore sites performance, which is up by more than 11
Slide 7: Ørsted construction programme and pipeline – as of 30 September
Ørsted construction programme and pipeline – as of 30 September Gross renewable capacity MW 2,825 124 30,925 Offshore Onshore 2,147 1,255 Other (incl. biomass & PtX) 1,498 3,214 Recent FID 6,371 924 704 21,085 1,478 72 920 2,147 1,166 130 900 15,715 6,247 2,075 4,769 Once fully commissioned, project
Slide 8: EBITDA increase driven by strong Offshore performance
EBITDA increase of more than 70 % driven by strong Offshore performance EBITDA excl. new partnerships of DKK 5.2 bn in Q3 2023 EBITDA excluding new partnerships DKKm • Offshore sites delivered strong results due to: Q3 2022, excl. 2,971 - Wind speeds slightly above norm (8.6 m/s in Q3 2023 vs. norm
Slide 9: Net profit, ROCE, and Equity
Net profit, ROCE, and Equity Adjusted net profit1 Farm-down gains Adjusted ROCE2 Equity Equity excl. hedging reserves DKKm %, last 12 months DKKbn Hedging reserves 9,355 24.4 53.8 91.5 5,860 120.1 9,346 12.6 101.8 4,007 -10.3 -66.3 1,853 9 Q3 2022 Q3 2023 30 Sep 2022 30 Sep 2023 30 Sep 2022 30 Sep 2
Slide 10: Net interest-bearing debt and credit metric
Net interest-bearing debt and credit metric Net interest-bearing debt FFO / Adj. net debt DKKbn % 43.9 9.2 35 1.3 42.9 4.4 21 -6.1 -9.8 30 Jun 2023 CFO Capex London Array Lease area Other 30 Sep 2023 30 Sep 2022 30 Sep 2023 divestment 500 acquisition Net interest-bearing debt of DKK 42.9 bn, down DK
Slide 11: Non-financial ratios
Non-financial ratios Taxonomy-eligible KPIs Green share of energy generation Safety %, YTD %, YTD Total recordable injury rate, YTD 92 92 3.3 Revenue OPEX 2.9 87 72 30 Sep 2022 30 Sep 2023 30 Sep 2022 30 Sep 2023 EBITDA CAPEX Green share of energy at 92 % TRIR of 2.9 • Higher generation from our win
Slide 12: 2023 guidance
2023 guidance EBITDA excluding new partnerships and provision Ørsted's previously guided EBITDA for 2023, excluding new partnership agreements, of DKK 20-23 billion remains unchanged, when excluding the provision of approximately DKK 8-11 billion related to Ocean Wind 1 Gross investments Due to a la
Slide 13: Q&A
Q&A DK: +45 78 76 84 90 UK: +44 203 769 6819 US: +1 646 787 0157 PIN: 994005 For questions, please press 5*
Slide 14: Appendix
Appendix
Slide 15: Total impairments of DKK 28.4 bn consists of four components
Total impairments of DKK 28.4 bn consists of four components Anticipated impairments announced on 29 August 2023 Total impairments 28.4 • Supply chain – DKK 5 bn adverse impacts relating to supply chains Q3 2023, DKKbn • ITC guidance – up to DKK 6 bn in the event of 30 % ITC for both Sunrise Wind an
Slide 16: Rapidly growing addressable market for Ørsted
Rapidly growing addressable market for Ørsted Offshore wind Onshore renewables Power-to-X (P2X) Installed capacity (excl. China), GW Installed capacity (excl. China), GW Electrolyser capacity, GW4 ~205 ~3,840 ~260 ~33 APAC ~1,000 RoW3 ~30 Americas1 130 RoW3, 5 x3 ~800 APAC x6 ~1,120 ~870 US 52 Ameri
Slide 17: Renewable capacity as of 30 September 2023
Renewable capacity as of 30 September 2023 Indicator, MW, gross 9M 2023 9M 2022 Δ FY 2022 Installed renewable capacity Installed renewable capacity The installed renewable capacity is calculated as the 15,714 15,106 608 15,121 cumulative renewable gross capacity installed by Offshore, wind power 8,8
Slide 18: Offshore wind build-out plan
Offshore wind build-out plan Installed capacity MW 2,822 22,406 Under construction 1,255 Awarded 1,498 3,214 924 920 704 12,693 1,166 132 900 8,871 Installed Greater German South Greater Revolution Decided Sunrise Wind US Mid- Baltica 2 Baltica 35 Hornsea 3 Decided capacity Changhua Portfolio1 Fork
Slide 19: Onshore build-out plan
Onshore build-out plan Installed capacity MW Under construction 471 67 33 6,279 600 250 4,785 73 Installed capacity Old 3001 Helena Energy Center2 Eleven Mile Mockingbird German French Decided (FID’ed) and Q3 2023 portfolio4 portfolio5 installed capacity Region ERCOT, TX ERCOT, TX WECC, AZ ERCOT, TX
Slide 20: Offshore market development – Europe (1/2)
Offshore market development – Europe (1/2) • Ambition of 50 GW by 2030 for offshore wind , including 5 GW of floating, was reiterated in March 2023 • Commitment to decarbonise electricity system by 2035 and binding target to reach net-zero emissions across the whole economy by 2050 • CfD allocation
Slide 21: Offshore market development – Europe (2/2)
Offshore market development – Europe (2/2) • The government on firm trajectory to deliver 21 GW by 2030 Netherlands • Next tender is IJmuiden Ver (2 x 2 GW) in H1 2024 - government has opted for a tender design that includes a capped payment and qualitative criteria focused on ecology and system int
Slide 22: Offshore market development – US
Offshore market development – US • Target 9 GW offshore wind by 2035. 4.3 GW awarded in total • Price adjustments for RD1 and RD2 were rejected by state PSC, potential of exit for awarded projects under the schemes. State exploring options for accelerated re-bid New York process for impacted project
Slide 23: Offshore market development – APAC
Offshore market development – APAC • Taiwan has met its target of awarding 5.5 GW to be commissioned by 2025. Target of 20.6 GW offshore wind by 2035 • Third round auction announced with 15 GW offshore wind target to be constructed from 2026-2035 Taiwan • Auction round 3.2 bid submission deadline ex
Slide 24: Up to 50 GW offshore wind capacity expected to be auctioned
Up to 50 GW offshore wind capacity expected to be auctioned in 2023-2024 Upcoming auctions and tenders Q1 20241 Q1 20241 H1 2024 H1 2024 2024 2024 Rhode Island Connecticut 3 Sørlige Nordsjø II site 1 Taiwan auction German tender ORESS 2.1 Approx 1,200 MW Approx 1,200 MW 1,500 MW 3,000 MW Up to 8 GW
Slide 25: Offshore seabed competition
Offshore seabed competition Q1 2024 Q2 2024 2024 2024 2024 Utsira Nord (floating) Central Atlantic Oregon Gulf of Maine Celtic Sea (floating) 3 x 500 MW 4-8 GW (BOEM ~3 GW TBD 4 GW estimate) Significant leasing activity expected in US in 2024; outlook for 2025 is unclear at this time. 25 All timelin
Slide 26: Power-to-X: Renewable hydrogen & e-fuels updates for Q3 2023
Power-to-X: Renewable hydrogen & e-fuels updates for Q3 2023 Signals for significant market growth Ørsted Power-to-X (P2X) highlights during Q3 2023 Critical regulatory developments in the EU FlagshipONE (FS1) maturation Critical regulatory success has been achieved in the EU by Ground broken at the
Slide 27: ESG Performance
ESG Performance Total heat and power generation 9M 2023 Scope 1 and 2 GHG intensity Scope 3 greenhouse gas emissions, Energy source, % g CO2e/kWh million tonnes CO2e Other scope 3 emissions Natural gas sales Offshore wind 40 Total scope 3 -87 % -98 % -90 % gas Onshore wind 28 -50 % all scope 3 produ
Slide 28: Sustainability leadership in Ørsted
Sustainability leadership in Ørsted Globally recognised sustainability leadership ESG rating performance Our reporting Net-zero in 2040 across scope 1-3 Rating agency Score Benchmark First energy company in the world with an approved science-based Annual report net-zero target for the full value cha
Slide 29: Our strategic sustainability priorities & targets
Our strategic sustainability priorities & targets Science-aligned climate Green energy that revives A green transformation that Governance that enables the action nature works for people right decisions Aspiration Aspiration Aspiration Aspiration We scale our green energy business We work to ensure
Slide 30: Group – Financial highlights
Group – Financial highlights Financial highlights Q3 2023 Q3 2022 D 9M 2023 9M 2022 D FY 2022 FY 2021 D EBITDA DKKm 9,173 12,317 (26 %) 19,403 25,361 (23 %) 32,057 24,296 32 % - New partnerships 4,007 9,346 (57 %) 4,007 10,916 (63 %) 10,993 8,507 29 % - EBITDA excl. new partnerships 5,166 2,971 74 %
Slide 31: Offshore – Financial Highlights
Offshore – Financial Highlights Financial highlights Q3 2023 Q3 2022 D 9M 2023 9M 2022 D FY 2022 FY 2021 D EBITDA DKKm 8,037 9,652 (17 %) 16,428 17,475 (6 %) 19,569 18,021 9% • Sites, O&Ms and PPAs 4,050 467 767 % 13,043 6,194 111 % 9,940 13,059 (24 %) • Construction agreements and 4,245 9,765 (57%)
Slide 32: Onshore – Financial Highlights
Onshore – Financial Highlights Financial highlights Q3 2023 Q3 2022 D 9M 2023 9M 2022 D FY 2022 FY 2021 D EBITDA DKKm 819 867 (6 %) 2,445 2,792 (12 %) 3,644 1,349 170 % • Sites 246 610 (60 %) 862 1,677 (49 %) 2,097 535 292 % • Production tax credits and tax 581 597 (3 %) 1,977 1,844 7% 2,556 1,382 8
Slide 33: Bioenergy & Other – Financial Highlights
Bioenergy & Other – Financial Highlights Financial highlights Q3 2023 Q3 2022 D 9M 2023 9M 2022 D FY 2022 FY 2021 D EBITDA DKKm 155 1,849 (92 %) 89 5,010 (98 %) 8,619 4,747 82 % • CHP plants (219) 1,691 n.a. 382 4,133 (91 %) 5,851 3,202 83 % • Gas Markets & Infrastructure 485 253 92 % (31) 1,044 n.a
Slide 34: Liquidity reserve remains significantly above target
Liquidity reserve remains significantly above target Collateral and margin postings, Liquidity reserve DKKbn DKKbn 30.6 97.8 0.4 88.0 89.2 18.4 14.1 1.3 10.6 9.7 4.0 11.8 5.3 3.1 1.3 Sep 2022 Dec 2022 Sep 2023 Sep 2022 Dec 2022 Sep 2023 Initial margin Cash, available Variation margin Securities, ava
Slide 35: Debt and hybrids overview
Debt and hybrids overview Total gross debt and hybrids Effective funding costs – Gross debt Maturity profile of notionals of gross debt 30 September 2023, DKKbn 30 September 2023, DKKbn >90 % of gross debt (bond and bank loans) fixed interest rate. Remainder floating or inflation-linked 34.2 10 % 3.
Slide 36: Currency and energy exposure
Currency and energy exposure Currency exposure Q4 2023 – Q3 2028 Merchant exposure Q4 2023 – Q3 2028* DKKbn DKKbn Before hedging Before hedging After hedging After hedging via as-produced PPAs and traded markets 65.9 46.9 32.6 21.3 8.5 6.9 5.9 -2.0 -0.5 0.0 -0.1 -0.1 -3.1 -13.1 Power Gas Oil Spread
Slide 37: Hedge levels for merchant exposure
Hedge levels for merchant exposure1 As of September 30th, 2023 New hedging framework for is better suited for the Merchant exposure covered with ‘as produced’ PPA contracts Offshore Merchant exposure covered with fixed volume obligations3 characteristics of our portfolio 74% 69% Hedge level of merch
Slide 38: Capital employed
Capital employed Capital employed, DKKm Q3 2023 FY 2022 Q3 2022 FY 2021 Capital employed by segment %, Q3 2023 Intangible assets, and property and equipment 181,301 181,694 179,660 162,939 Offshore Onshore Assets classified as held for sale, net - - 747 860 Bioenergy & Other Equity investments and n
Slide 39: Taxonomy-aligned KPIs
Taxonomy-aligned KPIs Unit 9M 2023 9M 2022 D FY 2022 Revenue DKKm 64,869 96,598 (33 %) 132,227 Taxonomy-aligned revenue % 87 71 16 %p 73 - Electricity generation from solar PV and storage electricity % 1 0 1 %p 0 - Electricity generation from wind power % 77 63 14 %p 65 - Cogeneration of heat and po
Slide 40: FFO/Adjusted net debt calculation
FFO/Adjusted net debt calculation Funds from operations (FFO), DKKm1 30 Sep 2023 31 Dec 2022 30 Sep 2022 EBITDA 26,099 32,057 33,614 Change in provisions and other adjustments (710) (2,213) (1,002) Change in derivatives 7,900 (8,687) (13,406) Variation margin (add back) (13,056) 10,332 17,140 Revers
Slide 41: 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 equity in a cost-efficient manner: calculating central rating ra
Slide 42: Ørsted's outstanding senior bonds
Ørsted’s outstanding senior bonds Outstanding Fixed/Floating Green Allocated to green Avoided emissions (thousand Bond Type Issue date Maturity Face Value Coupon Coupon payments amount rate bond projects (DKKm) tons CO2/year) Senior Unsecured Nov. 2017 26 Nov. 2029 EUR 750m EUR 750m Fixed 1.5% Every
Slide 43: Inflation and interest rate risks
Inflation and interest rate risks Fixed nominal Inflation-indexed Merchant 2024-2033 nominal cashflows from Active use of debt & hedges Offshore & Onshore assets to mitigate interest rate and inflation risk 15% 50% 15% 35% 25% 45% 35% 50% 30% Revenue incl. hedges Other EBITDA EBITDA Debt Hedges of f
Slide 44: Investor Relations contacts
Rasmus Hærvig Henriette Stenderup Head of Investor Relations Investor Relations Coordinator rakol@orsted.com hnste@orsted.com Sabine Lohse Valdemar Høgh Andersen Christopher Glaf Stenhammer Lead Investor Relations Officer Senior Investor Relations Officer Finance Graduate sablo@orsted.com vehan@orst