Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Day (March 2023)
144 slides from Edp's investor day presentation, Mar 2, 2023
Slide 1: Strategic Update 2023-26
Strategic Update 2023-26 Capital Markets Day – Draft March 2, 2023
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP – Energias de Portugal, S.A. (the "Company"). This document has been prepared 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 and it should be
Slide 3: What we are presenting today
What we are presenting today Our World and our commitments Miguel Stilwell d’Andrade (CEO) Our platforms Our financials Rui Teixeira (CFO) Closing remarks Miguel Stilwell d’Andrade (CEO) 3
Slide 4: Our World and our commitments
Strategic Update 2023-26 Our World and our commitments Capital Markets Day – Draft The call for Changing Tomorrow Now March 2, 2023 4
Slide 5: The energy transition is ever more pressing to address climate change
The energy transition is ever more pressing to address climate change… 2022 5th Record high CO2 emissions warmest year since 1880 Eight ocean stations Antarctic Sea ice observed water levels at an reached its all-time high lowest min. extent +100 Mn +100,000 ha people living in coastal areas of fore
Slide 6: Need for clean, affordable and reliable energy
… and is further reinforced by the need for clean, affordable and reliable energy Shifting global dynamics… … further emphasize the need for Decrease in gas flows ~50% reduction of Russian gas flows to Europe, driven by ongoing conflict1 (Clean) Energy Increase in energy prices independence ~6x incr
Slide 7: Unprecedented strategic commitments to accelerate the energy transition
Many reacted with unprecedent strategic commitments to accelerate the energy transition Change is already happening... … with existing challenges being addressed… Inflation Reduction Act (IRA) > $400 Bn in climate spending to reduce emissions >40% by 2030 Expansion and extension of PTCs and ITCs wit
Slide 8: Acceleration in energy transition upgrades growth prospects through 2030
Acceleration in energy transition resulting in a significant upgrade of growth prospects through 2030 Strategic Update 2021-25 vs. Today Global Renewables annual Global solar DG installed Global battery storage Global networks annual additions capacity installed capacity investment 2022-27, GW 2030,
Slide 9: Leading the energy transition to create superior value
Leading the energy transition to create superior value Our commitments Key figures and targets Accelerated and sustainable growth €25 Bn 4.5 GW/yr >50 GW gross investment 2023-26 gross additions 2023-26 RES gross additions 2021-30 ESG excellence and future-proof organization Coal free All Green Net
Slide 10: Increasing investment in the energy transition
Accelerated and sustainable growth We are increasing our investment in the energy transition, with a strong focus on renewables and core low-risk markets Reinforcing our investment... ... in the energy transition, across core low risk markets Annual Gross Investments1 (€ Bn) Gross Investments1 2023-
Slide 11: Ramping up growth with clear visibility on execution
Accelerated and sustainable growth We are successfully ramping up growth with clear visibility on execution We are scaling-up our growth rate… … and have clear visibility on execution Gross additions, GW € Bn, 2023-26 4.5 GW/yr ~181 GW €25 Bn (2023-26) Electricity Networks ~15% 4.8 ~50% 4.1 ~6x Rene
Slide 12: Distinctive asset rotation strategy
Accelerated and sustainable growth We will deploy our distinctive asset rotation strategy to crystalize value and fund additional growth opportunities ~€7 Bn AR proceeds and capital gains ~€20 Bn 4.5 GW/yr EV1 rotated track record since 2012 Upfront value crystallization ~30% Build to Sell Growth ac
Slide 13: Digital at the core and fast adopters on innovation
ESG excellence and future-proof organization We have digital at the core of our strategy and are fast adopters on innovation Leading the energy transition ~€2 Bn ~€1 Bn Digital TOTEX 2023-26 Innovation TOTEX 2023-26 Digital empowering business transformation Fast adopter on innovation to accelerate
Slide 14: Investing in talent for a future-proof organization
ESG excellence and future-proof organization We are continuously investing in our talent to ensure a future-proof organization, being recognized by the market across the globe Talent strategy Goal 2022 2026 targets Attraction Boost employer branding strategy New hires >2,000 >3,000 Scale-up sourcing
Slide 15: Leading the decarbonization of the sector towards Net Zero
ESG excellence and future-proof organization We are leading the decarbonization of the sector, working every day towards Net Zero #1 integrated ESG Framework. 2026 Targets electric utility We will Dow Jones Sustainability Index, Dec-22 Decarbonize for a climate-positive world Coal free by 2025 All g
Slide 16: Commitment to a strong BBB rating
Distinctive and resilient portfolio We remain fully committed to a strong BBB rating to structurally support the CAPEX cycle ahead We achieved the target BBB rating… … and reinforce our commitment to keep a strong balance sheet FFO/Net Debt1 ~20% ~21% ~21% Improved FFO/Net Debt, reaching >20% since
Slide 17: Actively managing EDP's listed subsidiaries
Distinctive and resilient portfolio We are actively managing EDP's listed subsidiaries Core EDP growth business with long- term value (>70% ownership) Capital raise of c. €1.0 Bn to fund acceleration of accretive Largest European listed pure-play renewables growth renewables Sizeable market with sol
Slide 18: Capital raise at EDPR to fund accretive renewables growth
Distinctive and resilient portfolio Capital raise at EDPR to fund acceleration of accretive renewables growth Sources and uses of cash Equity raise at EDPR EDPR, € Bn 2023-26 EDPR has a Gross Investments plan of ~€20 Bn to deploy ~17 GW of renewables additions in 2023-26 ~20 ~20 To partially fin
Slide 19: Brazil footprint aligned with EDP's equity story
Distinctive and resilient portfolio Brazil footprint and strategy is fully aligned with EDP’s equity story Weight of Brazil in the Group’s EBITDA Networks Hydro, Clients & EM Wind & Solar Energias do Brasil EDP Brasil Brazil’s contribution to EDP since 1995, conventional business EBITDA Brazil Por
Slide 20: EDP equity raise to fund delisting acquisition
Distinctive and resilient portfolio Transaction to be funded through a c. €1 Bn equity raise, and expected to be earnings accretive Rationale of the Equity capital raise at EDP, to fund the delisting acquisition ~€1 Bn ~€1 Bn Less than 5% of Corporate and business EDP’s Gross Investments in Implie
Slide 21: EDP Brasil Delisting Tender Offer
Distinctive and resilient portfolio Announcement of the start of the EDP Brasil Delisting Tender Offer process CVM registry request for the Delisting Tender Offer for all outstanding shares of EDP BR (41.3% of total shares, excluding EDP BR own shares) Offer in cash of R$24.0/share, above appraisal
Slide 22: Superior value through EPS growth and solid dividend policy
Superior value creation for all stakeholders We are delivering superior value through sustained EPS growth and a solid dividend policy with an increased floor Delivering strong earnings growth… … with an attractive dividend policy Recurring Net Income1 From… To… € Bn DPS floor €0.19 €0.19 in 2023 +1
Slide 23: Our Platforms
Strategic Update 2023-26 Our Platforms Capital Markets Day – Draft Empowering the energy transition March 2, 2023 23
Slide 24: Our platforms
Our platforms EBITDA 2022 Renewables, Clients & EM1 Electricity Networks Clean energy growth Energy transition enabler Clean generation with a strong track record across technologies, along with an Stable and attractive returns with integrated approach to manage risk, and to create superior and resi
Slide 25: Renewables, Clients & EM
markets Capital @<edp day 2023 Renewables, ge f
Slide 26: Global leading position with 22 GW in 4 hubs
We have scaled up our global leading position, with 22 GW in 4 strategic onshore hubs and in offshore through Ocean Winds Installed capacity, Dec-22 Our global wind, solar and hydro footprint today Differentiated and leading position in the US and EU markets Europe Scaled our European position throu
Slide 27: Ramping up growth with flexibility to accelerate
We are successfully ramping up growth, with flexibility to further accelerate EDP gross additions Average GW per year 4.5 GW/yr ~181 GW (2023-26) Flexible pipeline 4.8 allowing to adjust 4.1 growth pace… ~6x 2.4 … and capture 1.3 additional 0.7 opportunities if market conditions 2015-18 2019-20 2021
Slide 28: Robust and flexible pipeline
We have a robust and flexible pipeline, supporting execution of the growth plan Pipeline with optionality to deliver 2023-26 growth… … reinforced by strategic initiatives Pipeline, GW, EDP 74 74 Pipeline grew 2x since 2020 Offshore3 South Acceleration of organic in-house Pipeline >7x the Long Americ
Slide 29: Consolidating presence across technologies
We are consolidating our presence across technologies with differentiating value propositions Wind & Solar (5.0 GW) Wind onshore ~40% Top 4 global1 player with extensive track record along the full value chain with highly experienced teams Solar Utility scale (9.4 GW) ~40% Additions ramping up quick
Slide 30: Reinforcing onshore portfolio in core low-risk markets
We are reinforcing our established onshore portfolio, focusing on our core low-risk markets Onshore portfolio Target onshore additions 2023-26 Breakdown in % of total onshore additions EDP regional hubs North America Europe South America APAC 7.4 ~43% 5.9 ~35% 2.5 ~15% 1.2 ~7% GW GW GW GW Substantia
Slide 31: Scaled in Solar DG
We have scaled in Solar DG, a high growth and attractive energy transition technology Onshore portfolio: Solar DG High growth market… … supported by strong intrinsics… … that translate into attractive economics 40-50% <12 months development Shorter payback periods of market solar additions1 globally
Slide 32: Accelerating global Solar DG business
We will continue to accelerate our leading global Solar DG business, deploying 2.1 GWac of PPA model until 2026 Onshore portfolio: Solar DG Our competitive advantage Our growth ambition – global market leader, with consolidated position across key markets1 Leveraging on developed capabilities Gross
Slide 33: Sizeable and attractive offshore portfolio
OW has been building a sizeable and attractive offshore portfolio, providing significant visibility on growth over the next 10-15 years Offshore wind, GW Ocean Winds continues to grow with a total … which provides strong visibility on growth portfolio of 16.6 GW… post 2026 U/C Under dev. Floating Bo
Slide 34: Upcoming seabed tenders add ~70GW of opportunities
Upcoming tenders for seabed lease add up to ~70GW of further growth opportunities in OW’s core markets Substantial growth opportunities… … and a differentiating position in floating Europe US and APAC (excluding China) 109-112 75 GWh first year of operation Windfloat Atlantic, the world’s first subm
Slide 35: Superior portfolio and infrastructure as competitive advantage
We are leveraging our superior portfolio and infrastructure as a competitive advantage for increased renewables deployment Hybridization Repowering Storage Hydrogen Leveraging existing grid Increasing installed capacity +0.5 GW battery storage Allowing for RES deployment and connection capacity (e.g
Slide 36: Hydro cash flow generation and flexibility
We will leverage on the strong cash flow generation profile and flexibility provided by our hydro portfolio to capture value Hydro > 7 GW Hydro capacity, ensuring competitiveness, flexibility and storage capabilities Strong cash flow generation supported by operational Iberia ~4 GW with reservoir al
Slide 37: Managing the entire value chain
We are managing the entire value chain to ensure the delivery of competitive and quality projects, at the highest excellence standards Development Local development knowledge and multi-partnership network Asset financing and tax equity structuring track record in the US >15 GW ~50% Wind & Solar port
Slide 38: Adjusted hedging strategies to optimize portfolio risk
We are managing our integrated position with adjusted hedging strategies to optimize portfolio risk / return Global Energy Management Renewables Gradual reduction Targeting an optimized >70 TWh under global generation hedging of exposure to gas generation/ supply management (~75% long position term
Slide 39: Leveraging customer franchise for growth
We are leveraging our customer franchise to accelerate growth and value creation Client Solutions, 2023-26 Customer franchise Offering (with cross-selling potential) Commercial capabilities E-mobility and structure Solar DG Corporate PPAs ~7k charging points in Iberia Go-to-market , client by 2026 W
Slide 40: Consolidating superior renewables portfolio
We are consolidating our superior renewables’ portfolio, with a diversified technology mix Renewables EBITDA + Equity GW Evolution of installed capacity Geographic mix Technology mix GW, 2026 % installed capacity, 2026 % installed capacity, 2026 17% ~7 ~33 38% 2% 2% ~18 48% ~33 GW 9% ~33 GW 47% ~22
Slide 41: Electricity Networks
markets day 2023“ Scone NS tC = Electricity Networks
Slide 42: Growing and diversifying low-risk networks portfolio
We have been growing and diversifying our low- risk networks portfolio, acting as a portfolio stabilizer for the group Electricity Networks Resilient portfolio We are a top player in the … with strong track to volatile macro environments networks business… record and expertise Top tier grid operator
Slide 43: Growing distribution asset base with regulatory visibility
We are growing our distribution asset base and we have high visibility over the upcoming period Distribution business Growing our Distribution business… ... on the back of visibility on regulatory frameworks Regulated Asset Base, € Bn RoR Regulation and Gross Investments1 Portugal Spain Brazil By 20
Slide 44: Investing in innovation and digitalization in networks
We are investing in innovation and digitalization, to deliver superior quality of service in our networks Distribution business Lead in innovation and digitalization… … enhancing quality and resilience… Average SAIDI1 across concessions, Min ~€0.9 Bn 100% investment in smart meters 405 -12% digitali
Slide 45: Scaling transmission development capabilities
We are scaling our transmission development capabilities, creating value through superior execution of investments and asset rotation Transmission in Brazil Distinctive portfolio of transmission assets >10% of Networks RAB in 2026 Top 10 player of Transmission business in ~€1 Bn RAB in 2026 Brazil E
Slide 46: Our platforms summary
Our platforms Renewables, Clients and EM1 Electricity Networks Clean energy growth Energy transition enabler Clean generation with a strong track record across technologies, along with an integrated Stable and attractive returns with approach to manage risk, and to create superior and resilient valu
Slide 47: Our Financials
Strategic Update 2023-26 Our Financials Capital Markets Day – Draft Strong value creation with a sound balance sheet and risk profile March 2, 2023 47
Slide 48: Distinctive and resilient portfolio with low-risk profile
We have a distinctive and resilient portfolio, with a low-risk profile and focused geographic presence Our distinctive and resilient portfolio… ... increasingly aligned with the Energy Transition 2026 guidance, share of EBITDA <15% <5% Iberia >95% Energy Transition at our core Rest of Europe Share o
Slide 49: Selective and disciplined investment framework
We are keeping our selective and disciplined investment framework, delivering stronger returns throughout the cycle Attractive returns Typical metrics of project approvals1 over the last 6 months Target Achieved IRR/WACC (x) >1.4 Region Technology Unlevered project IRR2 Stronger returns and cash yie
Slide 50: Sector wide repricing of PPAs
Sector wide repricing of PPAs, reflecting the higher CAPEX costs and interest rate environment ESTIMATES Bond yields1 P25 PPA Price Index Wind Blended Solar Price ($/MWh) +250-300bps 90 increase by Dec22 vs. Jan20, in Eurozone and 80 the US respectively 70 60 CAPEX 50 20-30% 40 CAPEX/MW increase est
Slide 51: Maintaining Asset Rotation strategy
We will maintain our Asset Rotation strategy and continue to crystallize value throughout the plan Wind and solar Leveraging our Asset Rotation strategy… … with prudent assumptions on capital gains Asset Rotation proceeds1 (€ Bn/yr) Asset Rotation EBITDA gains (€ Bn/yr) 1.6 1.7 ~0.5 1.6 0.3 0.3 BP 2
Slide 52: Prudent financial policy and solid investment grade rating
We have a prudent financial policy with a centralized management, supporting a solid investment grade rating Rating Green financing Cost of debt Keep BBB rating, by maintaining Tap most efficient markets, Continued active management sound credit metrics and overall leveraging appetite for green fund
Slide 53: Refinancing needs addressed with long maturities
We have addressed in advance our refinancing needs with long maturities and have a strong position for competitive green financing Since 2021, EDP has been issuing longer maturity … with a strong positioning for green financing as a bonds… competitive hedge 2022 2026 Green Bond value Average Average
Slide 54: Strong liquidity position
We have a strong liquidity position covering refinancing needs beyond 2025 Active debt & liquidity management1 Financial liquidity as of Dec-22 EDP consolidated debt maturity profile as of Dec-222 € Bn € Bn EDP Brasil EDP SA & EDP Finance BV and Other 4.3 Cash & Equivalents 4.9 3.3 2.9 2.3 2.2 1.9 A
Slide 55: Managing interest rate and FX risks
We actively manage interest rate and ForEx risks within existing risk policies Interest and forex risks Debt by interest rate type as of Dec. 22 Avg. nominal debt by currency as of Dec. 22 % % Floating Fixed Other 1% 2% 12% 14% 25% 33% 36% Brazil to match asset exposure to inflation and 75% 54% 48%
Slide 56: Sound balance-sheet and low-risk profile
We are keeping a sound balance-sheet and low-risk profile 17 Reinforced commitment to 16 13 a strong BBB rating Net Debt Reached >20% FFO/ND in € Bn 2021, achieving BBB credit rating Solid cash flow generation with +€4 Bn net debt after a ~20% ~21% ~21% €25 Bn gross investments plan FFO/Net Debt 1 O
Slide 57: Diversified sources of cash
We have diversified sources of cash to deliver on our growth BP23-26 Organic Sources and Uses of Funds (€ Bn) Uses of cash Sources of cash ~€27 Bn Dividends ~3 Organic CF1 Delisting ~1 (net of maintenance ~9 EDP Brasil CAPEX) and others Asset Rotation + ~8 Expansion Disposals Investment ~23 TEI2 ~4
Slide 58: Growing leading energy transition portfolio
We are committed to further grow and consolidate our leading energy transition portfolio, delivering superior value Recuring Net 0.9 ~1.4-1.5 12-14% Income1, € Bn CAGR 2022-26 EBITDA, € Bn ~5.7 6% CAGR 2022-26 4.5 ~1.5 Electricity Networks 1.5 ~1.2 Hydro, Clients & EM 0.9 ~3.0 Wind & Solar2 2.2 2022
Slide 59: Strengthened strategic targets
We strengthen our strategic targets, reinforcing our ambition to lead the energy transition Our commitments Key targets BP 2021-25 BP 2023-26 Accelerated and Deployment ~4 GW/year ~4.5 GW/year sustainable growth Asset Rotation €1.6 Bn/year in AR; €0.3 Bn in gains €1.7 Bn/year in AR; €0.3 Bn in gains
Slide 60: Closing remarks
Strategic Update 2023-26 Closing Capital Marketsremarks Day – Draft March 2, 2023 60
Slide 61: Stepping-up green growth delivery
We are anticipating our targets from 2025 to 2024, on the back of strong market tailwinds We are stepping-up We are accelerating our sustainable growth, stepping-up delivery to green growth 4.5 GW/year delivery, on the back We are consolidating our leading role in ESG excellence, (re)committing to o
Slide 62: An energy transition leader creating superior value
Distribution & Transmission <€5.0 Bn €7.0 Bn €7.5 Bn ~€8.0 Bn Networks RAB 100% 93% We are an energy Renewables 74% transition leader, Generation >50 GW 60% creating superior 33 GW Renewables value for all Installed Capacity 22 GW stakeholders EBITDA + Equity 11 GW 4.8 GW Average Gross 2.4 GW <0.7 G
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Slide 64: Appendix
APPENDIX Macro assumptions Sector context and regulatory outlook EDP Group Liquidity position & debt management Renewables Networks Portugal Strategic Axis ESG EDPR 64
Slide 65: Main market and macro assumptions
Main market and macro assumptions Pool Iberia €/MWh TTF €/MWh CO2 €/ton Inflation Europe1 % Inflation Brazil % Avg. IPCA / IGPM 168 123 90 9.2 5.6 81 81 126 3.9 3.6 82 59 35 3.2 2.1 2022 2024 2026 2022 2024 2026 2022 2024 2026 2022 2024 2026 2022 2024 2026 EUR/USD EUR/BRL EUR 7Y MidSwap % USD 7Y Tre
Slide 66: Macroeconomic indicators for main markets
Macroeconomic indicators for main markets 2022 2023 2022 2023 2022 2023 2022 2023 Inflation (CPI)1 7.9% 4.7% 8.8% 4.9% 8.1% 3.5% 9.4% 4.7% Weight of housing and 9.6% - 14.2% - 36.1% - 15.3%3 - utilities on CPI basket2 Deficit, GDP4 -1.9% -1.4% -4.9% -4.4% -4.0% -5.7% -5.8% -7.5% Gross Debt/GDP 114.7
Slide 67: Appendix
APPENDIX Macro assumptions Sector context and regulatory outlook EDP Group Liquidity position & debt management Renewables Networks Portugal Strategic Axis ESG EDPR 67
Slide 68: Renewables will accelerate and are most competitive
Renewables will accelerate significantly and are by far the most competitive option Renewables expected to grow significantly by 2050… … driven by the most cost competitive solutions… Total renewables capacity1, Global, TW Forecasted EU and US LCOE across technologies, 2030, $/MWh Pool prices Iberia
Slide 69: Emerging renewables technologies create new growth avenues
A broader set of renewables technologies are also emerging and creating new growth avenues Solar Distributed Generation Utility-scale Storage Green Hydrogen Faster licensing and permitting with high Crucial to support intermittent renewables, with Critical to decarbonize hard-to-abate sectors cash-y
Slide 70: Decarbonization and electrification
Everyone needs to play a role in decarbonization and electrification Industry decarbonization Electric vehicles Energy efficiency services Hydrogen demand in industry Installed EV chargers Households with smart thermostats1 Million tons of H2 Global, #, Millions #, Millions x2 180 x7 36 x4 196 94 49
Slide 71: Electricity networks need faster deployment and digitalization
Electricity networks will also need faster deployment, increased digitalization and flexibility Networks need to be smarter and more resilient to … which requires significant investment support renewables deployment… Annual EU-27 + UK investment in electricity grids, € Bn x1.6 34-39 23 Digitalizatio
Slide 72: US IRA expected to bring >$400 Bn climate spending
In the US, the IRA is expected to bring >$400 Bn in investment in climate spending over the decade IRA represents unprecedented US commitment on climate with >$400 Bn over the next decade, aiming to reduce carbon emissions by more than 40% until 2030, by providing strong investment incentives to the
Slide 73: EU rallying forces to drive renewables growth
EU is rallying forces to drive renewables growth Prices stabilization and regulation from European governments, supported by REPowerEU and recent Green Deal, boost long-term growth EU Renewables capacity until 2030 Green Deal Industrial Plan to enhance the competitiveness of GW Europe's net-zero ind
Slide 74: Appendix
APPENDIX Macro assumptions Sector context and regulatory outlook EDP Group Liquidity position & debt management Renewables Networks Portugal Strategic Axis ESG EDPR 74
Slide 75: Global company present in 4 regional hubs
We are a global company, leader in the energy sector, present in 4 regional hubs throughout different stages of the value chain % Weight on EBITDA 2026 Renewables, Clients & EM North America Europe APAC ~75% Wind Solar Solar Energy onshore utility- DG management scale Wind Hydro Storage H2 Client of
Slide 76: Global, dynamic and diverse future-proof organization
ESG excellence and future-proof organization We have been evolving towards a global, dynamic and diverse future-proof organization 2022 Global presence across four … with an increasingly different regional hubs… diverse organization 2022 ~13k 64 employees nationalities North Europe America >60% >40%
Slide 77: Strengthening business delivery and new capabilities
ESG excellence and future-proof organization We are strengthening our business delivery, scaling new business capabilities Consolidating and reinforcing our talent for growth Wind & Solar Hydro, EM & Clients Networks Transversal Headcount evolution, thousand # 14.0 13.2 1.8 Focused enablement functi
Slide 78: Driving digital transformation
ESG excellence and future-proof organization We are driving a digital transformation to further boost business performance Digital transformation with 7 key action … across business, drivers… enablers and ways of working All People Global human center All Global organization, acquiring ~€2 Bn Holist
Slide 79: Innovation to lead the energy transition
ESG excellence and future-proof organization Innovation is key for us to lead the energy transition, leveraging on our foresight capacity, business expertise and geographic presence Pursuing innovation across key EDP … through 3 major innovation business expertise domains… avenues Aligned with corpo
Slide 80: EDP with an integrated presence in Brazil
Distinctive and resilient portfolio EDP with an integrated presence in Brazil Projects in operation at EDPR Projects under development at EDPR EDP Brasil Hydro (2 GW) Energias do Brasil since 1995, conventional business RR AP Full fledged corporate structure with energy Ceará - Pecém (720 MW) manage
Slide 81: Appendix
APPENDIX Macro assumptions Sector context and regulatory outlook EDP Group Liquidity position & debt management Renewables Networks Portugal Strategic Axis ESG EDPR 81
Slide 82: Raising funds primarily at Holding level
We are raising funds primarily at Holding level, ensuring an efficient debt management Centralized and diversified funding EDP Consolidated net debt position as of Dec.22 Sources of debt funding as of Dec.22 € Bn % Green Bonds Loans and other 13.2 Capital Conventional Bonds Commercial paper EDP Bras
Slide 83: Appendix
APPENDIX Macro assumptions Sector context and regulatory outlook EDP Group Liquidity position & debt management Renewables Networks Portugal Strategic Axis ESG EDPR 83
Slide 84: Leadership position in wind onshore
We are consolidating our leadership position in wind onshore, supported by low core risk markets 2023-26 wind onshore evolution Installed Capacity. GW Consolidated position as global Top Wind player Gross Additions Reinforced presence in 2.1 1.5 1.3 0.1 5.0 core low-risk markets (~90% of increase in
Slide 85: Global base to capture growth in solar
We have established a global strong base to capture the growth in solar Solar Utility scale Solar Utility scale evolution. 2023-36. GW Highest growing Target additions 2023-26 technology, doubling its North Europe total share of Renewables to ~50% in 2030 (vs. ~25% in America 4.1 3.9 2020) Reinforce
Slide 86: OW top offshore player with diversified mix
OW is a top 5 offshore player globally, with a diversified geographical mix in core low-risk markets Offshore Wind, GW Contracted and inflation linked Partially contracted Inflation linked projects, representing 80% of PPA secured capacity PPA contracted and Gross Net COD Project Technology inflatio
Slide 87: Appendix
APPENDIX Macro assumptions Sector context and regulatory outlook EDP Group Liquidity position & debt management Renewables Networks Portugal Strategic Axis ESG EDPR 87
Slide 88: Enabling energy transition with operational excellence
We are further enabling the energy transition, boosting our operational excellence, and following highest ESG principles Ambition 2023-26 Creating value across asset classes Sizeable and recurrent capital deployment Growth potential to address energy transition needs Boost operational Enable the Bui
Slide 89: Grid modernization and digital transformation
We are focusing on Grid modernization and Digital transformation, with electrification and losses prioritized in Brazil Distribution Gross Investments Plan 2023-26, % Total, € Bn ~1.5 ~0.6 ~1.1 ~3.2 Electrification & decarbonization Resilience & environment Modernization Digital transformation Losse
Slide 90: Regulatory Framework: Distribution
Regulatory Framework: Distribution Esp. Santo São Paulo Current regulatory period 2022-2025 2021-2025 2022-2025 2019-2023 New regulatory period 2026 2026 2025 2023 Regulatory period length 4 years 5 years 3 years 4 years LV – 2021/223 Concession Perpetual Jul. 2025 Oct. 2028 MV/HV - 2044 RoR pre-tax
Slide 91: Portugal networks 2023 regulated revenues
Electricity Networks in Portugal 2023 regulated revenues +2% supported by indexation to Portugal 10-year bond yields and inflation Electricity Distribution regulated revenues 2022 2023 YoY Annual RoRAB indexed to 10-year Portuguese Regulated bond yields1 Revenues €1,029m €1,051m +2.0% Preliminary Pr
Slide 92: Successfully integrated Viesgo
We have successfully integrated Viesgo Rationale Main achievements Acquisition fully aligned with EDP’s €29m >100% strategic vision Cost synergies (25% of of pre-closing synergies cost base) identified and planned High quality assets with high synergetic potential EDP was the natural owner of the €3
Slide 93: CELG-T integration
CELG-T integration sheds positive light on EDP’s ability to successfully integrate potential target in a profitable manner Past integration of CELG-T 100 Days Plan for the integration of CELG-T with completion rate of +96% before due time +336 Macro actions 321 Actions completed Main deliveries from
Slide 94: Appendix
APPENDIX Macro assumptions Sector context and regulatory outlook EDP Group Liquidity position & debt management Renewables Networks Portugal Strategic Axis ESG EDPR 94
Slide 95: Historical commitment with Portugal
We have an historical commitment with Portugal, being a core contributor to the country’s decarbonization NOT EXHAUSTIVE ~6 GW installed in clean Quality energy supply to >€15 Bn estimated gross technologies over the last 20yr ~7 Mn Portuguese investment over the last 20yr ~7,250 direct and indirect
Slide 96: Continuing to invest in Portugal
We will continue to invest in Portugal, further reinforcing our impact over the next years NOT EXHAUSTIVE 2 Hydrogen projects being developed in old thermal plants in Sines and Ribatejo 2k contracted charging points in Portugal >€3 Bn estimated gross investment in Portugal First floating solar park
Slide 97: Portugal electricity prices among lowest in Europe
In electricity, prices in the domestic and industrial sectors in Portugal are one of the lowest in Europe International comparison of average electricity prices1 for the 1st semester of 2022, €/MWh vs. Portugal GE 328 50% IT 312 42% 5% YoY electricity prices’ increase in Portugal in the SP 307 40% d
Slide 98: High renewables share and FiT allowed stable prices
High share of renewables in the system together with the FiT remuneration scheme allowed for stable prices to consumers Wholesale Price vs. Renewables Feed-in-Tariff Regulatory Electricity Tariff Components €/MWh Residentials end-users tariffs4 Energy component Global use of system tariff Renewable
Slide 99: Portuguese electricity system debt downward trend
Portuguese electricity system debt on a continuous downward trend, with ~€3.9Bn reduction from 2015-22 Portuguese Electricity System Debt €Bn ~75% Stable FiT € 0.9Bn of system debt reduced and SRP surplus in 2021 and 2022 further Estimated electricity system 2015-22 supporting system debt reductions
Slide 100: Portugal less dependent on gas
Portugal in a better position than European peers given the lower dependence on Gas Gas consumption per capita Cubic meters Portugal 2022 Considerably less dependent on gas Decreased demand due to mild weather imports and volatile markets than other and the European Union goal of reducing European c
Slide 101: Appendix
APPENDIX Macro assumptions Sector context and regulatory outlook EDP Group Liquidity position & debt management Renewables Networks Portugal Strategic Axis ESG EDPR 101
Slide 102: Our ESG commitments
A WAY FOR A BETTER TOMORROW All in all – our ESG commitments Ambition Goal 2022 2026 target 2030 ambition Decarbonize: for a climate-positive SBTi: Scope 1 + Scope 2, gCO2e/kWh (% vs. 2020)1 160 (+2%) 36 (-77%) 8 (-95%) world SBTi: Scope 3 , MtCO2e (% vs. 2020)1 - - ~6Mn (-45%) Renewables generation
Slide 103: ESG leader recognized by top-tier institutions
We are an ESG leader recognized by top-tier institutions and aim to maintain a leadership position in ESG rating performance Entity Rating Entity Rating Other Recognitions 90/100 4.5/5 #1 integrated electric Top 5% utilities (Dec-22) Sep-22 1 20/100 A list 2 Medium risk on climate change Jan-23 and
Slide 104: Decarbonize: Reducing current emissions levels
Decarbonize: Reducing the current emissions levels EDP is working to steeply curb emissions paying special attention to main emission sources Main source of emissions Total 2020 emissions, MtCO2e (% of total) Distribution power losses Gen-retail (scope 1+2) Thermal Upstream and fuel combustion from
Slide 105: Decarbonize: climate-positive world
Decarbonize: For a climate-positive world -28% 0.160 Coal free by 2025 Scope 1 + 21 (tCO2e/MWh) 0.157 +2% (vs. 2020) -77% (vs. 2020) -95% -96% All green by 2030 (vs. 2020) 0.112 0.036 (vs. 2020) (vs. 2020) 0.008 0.006 Net Zero by 2040 -45% Reinforce efforts for the (vs. 2020) -90% decarbonization pa
Slide 106: Ensuring a green and fair energy transition
Decarbonize: Ensuring a green and fair energy transition Moto Project Partners Transition from Coal to Green Sines A center of H2 Tech GreenH2Atlantic Closed 2021 Excellence Develop transition plans creating 100MW electrolyser & associated renewables green energy hubs in prior coal power plants’ sit
Slide 107: Communities: EDP Y.E.S
Communities: EDP Y.E.S (You Empower Society) Say "YES" to change the world, with a new global Empowering our program with >500 projects and >€30M/yr invested Communities through social Key programs (examples) Targets1 programs Closer2You ~€200M EDP contributes to the investment in social sustainable
Slide 108: Communities: Initiatives examples
Communities: Initiatives examples (non-exhaustive) Targets Foster energy transition jobs and 45%1 of training focusing on local employment ‘Keep it local’ Entama ‘Incluir para upskilling and reskilling by 2026 EDP aims to reinforce its Iluminar’ top-class team and Provides scholarships for a Wind Fa
Slide 109: Planet: Protecting our planet
Planet: Targets Protecting 100% our planet Biodiversity Net Gain in new projects1 by 2030 Projects with Net Gain Biodiversity tracking system worldwide by 2026 EDP aims to protect the Best practices Nature-center Pilot testing planet and contribute Adopt the TNFD framework Increase the use of nature
Slide 110: Planet: Accelerate circularity commitments
Total recovered waste Key initiatives Pilot initiative that joins together EDP, APREN, and 90% >90% end-of-life service providers to map 2026 2030 opportunities for end-of- Planet: Accelerate life blades in Portugal circularity commitments Foster circularity requirements in the procurement processes
Slide 111: Partners: Engaging our partners
Partners: Engaging our Partners for an impactful transformation 100% edpartners All suppliers must pass: • Integrity and Compliance Due Diligence of suppliers already compliant with ESG • Specific ESG Due Diligence1 Due Diligence Critical partners must implement management systems and define transpa
Slide 112: ESG Culture
ESG Culture: A strong ESG culture protecting and empowering human life Initiatives are in place to promote the … and being reinforced by desired ESG culture... ambitious targets (examples) PlayItSafe Program enhances the continuous improvement of Safety Culture 0 fatal accidents through a robust Hea
Slide 113: Appendix
APPENDIX Macro assumptions Sector context and regulatory outlook EDP Group Liquidity position & debt management Renewables Networks Portugal Strategic Axis ESG EDPR 113
Slide 114: Capital markets day EDPR 2023
Capital markets day EDPR 2023
Slide 115: The energy transition is ever more pressing
The energy transition is ever more pressing to address climate change… 2022 5th Record high CO2 emissions warmest year since 1880 Eight ocean stations Antarctic Sea ice observed water levels at an reached its all-time high lowest min. extent +100 Mn +100,000 ha people living in coastal areas of fore
Slide 116: Need for endogenous, affordable and reliable energy
… and is further reinforced by the need for endogenous, affordable and reliable energy Shifting global dynamics… … further emphasize the need for Decrease in gas flows ~50% reduction of Russian gas flows to Europe, driven by ongoing conflict1 (Clean) Energy Increase in energy prices independence ~7x
Slide 117: Strategic commitments to accelerate the energy transition
Many reacted with unprecedent strategic commitments to accelerate the energy transition Change is already happening... … with existing challenges being addressed… Inflation Reduction Act (IRA) > $400 Bn in climate spending to reduce emissions >40% by 2030 Expansion and extension of PTCs and ITCs wit
Slide 118: Commitment to lead the energy transition
We strengthen our commitment to lead the energy transition and create superior value, which is further reinforced by the current context >4GW/yr Net Zero renewables deployed 2023-26 by 2040 A leading global renewables major Pure 100% renewable player Double wind and solar installed capacity by 2026
Slide 119: Global leading position with 15 GW in 4 hubs
We have scaled up our global leading position, with 15 GW in 4 strategic onshore hubs and in offshore through Ocean Winds EDPR global wind and solar installed capacity Leading pure renewables player, with ~20 years of track record Differentiated and leading position in Europe the attractive US marke
Slide 120: Ramping up growth with flexibility
We are successfully ramping up growth, with flexibility to further accelerate EDPR gross additions >4 GW/yr Average GW per year ~17 GW (2023-26) Flexible pipeline allowing to adjust 4.7 growth pace… >5x 3.9 2.4 … and capture 1.2 additional 0.7 opportunities if market conditions 2015-18 2019-20 2021-
Slide 121: Clear visibility and robust pipeline
We have clear visibility and a robust pipeline to deliver on our ambition Growing pipeline with clear visibility… … reinforced by strategic initiatives Pipeline, GW, EDPR 74 74 Pipeline grew 2x since 2020 Offshore3 South Acceleration of organic in-house America Pipeline >7x the Long development ~50%
Slide 122: Consolidating presence across technologies
We are consolidating our presence across technologies with differentiating value propositions (~5.0 GW) Wind onshore ~40% Top 4 global1 player with extensive track record along the full value chain with highly experienced Solar Utility scale (~9.4 GW) teams ~40% Additions ramping up quickly, leverag
Slide 123: Reinforcing established onshore portfolio
We are reinforcing our established onshore portfolio, focusing on our core low risk markets Target onshore additions 2023-26 Percentage of total onshore additions EDPR regional hubs Onshore portfolio North America Europe South America APAC 7.4 ~45% 5.6 ~35% 2.2 ~13% 1.2 ~7% GW GW GW GW Substantial g
Slide 124: Leadership position in wind onshore
We are consolidating our leadership position in wind onshore, supported by low core risk markets 2023-26 wind onshore evolution Installed Capacity, GW Consolidated position as global Top Wind player Gross Additions Reinforced presence in 2.1 1.5 1.3 0.1 5.0 core low-risk markets (~90% of increase in
Slide 125: Global base to capture growth in solar
We have established a global strong base to capture the growth in solar Solar Utility scale Solar Utility scale evolution. 2023-36. GW Highest growing Target additions 2023-26 technology, doubling its North Europe total share of Renewables to ~50% in 2030 (vs. ~25% in America 4.1 3.9 2020) Reinforce
Slide 126: Sizeable and attractive offshore portfolio
OW has been building a sizeable and attractive offshore portfolio, providing significant visibility on growth over the next 10-15 years Offshore wind, GW Ocean Winds continues to grow with a total … which provides strong visibility on growth portfolio of 16.6 GW… post 2026 U/C Under dev. Floating Bo
Slide 127: Upcoming seabed tenders ~70GW
Upcoming tenders for seabed lease add up to ~70GW of further growth opportunities in OW’s core markets Substantial growth opportunities… … and a differentiating position in floating Europe US and APAC (excluding China) 109-112 75 GWh first year of operation Windfloat Atlantic, the world’s first subm
Slide 128: Superior portfolio and infrastructure as competitive advantage
We are leveraging our superior portfolio and infrastructure as a competitive advantage for increased renewables deployment Hybridization Repowering Storage Hydrogen Leveraging existing grid Increasing installed capacity +0.5 GW battery storage Allowing for RES deployment and connection capacity (e.g
Slide 129: Sector wide repricing of PPAs
Sector wide repricing of PPAs, reflecting the higher CAPEX costs and interest rate environment ESTIMATES Bond yields1 P25 PPA Price Index Wind Blended Solar Price ($/MWh) +250-300bps 90 increase by Dec22 vs. Jan20, in Eurozone and 80 the US respectively 70 60 CAPEX 50 20-30% 40 CAPEX/MW increase est
Slide 130: Selective and disciplined investment framework
We are keeping our selective and disciplined investment framework, delivering stronger returns throughout the cycle Attractive returns Typical metrics of project approvals1 over the last 6 months Target Achieved IRR/WACC (x) >1.4 Region Technology Unlevered project IRR2 Stronger returns and cash yie
Slide 131: Distinctive asset rotation model
We will continue to leverage our distinctive asset rotation model to continue to further empower growth Asset Rotation strategy allows for superior value creation… … proven by a consistent track record1 Incremental value created at project execution ~€7 Bn AR proceeds and capital gains ~€20 Bn EV2 r
Slide 132: Maintaining Asset Rotation strategy
We will maintain our Asset Rotation strategy and continue to crystallize value throughout the plan Wind and solar Leveraging our Asset Rotation strategy… … with prudent assumptions on capital gains Asset Rotation proceeds1 (€ Bn/yr) Asset Rotation EBITDA gains (€ Bn/yr) 1.6 1.7 ~0.5 1.6 0.3 0.3 BP 2
Slide 133: Consolidating superior renewables portfolio
We are consolidating our superior renewables’ portfolio, with a diversified technology mix Evolution of installed capacity Geographic mix Technology mix GW % installed capacity, 2026 % installed capacity, 2026 ~2x installed ~5 ~27 7% 2% 7% 2% capacity (vs. 2020) 8% 2% ~17 27 GW 48% 27 GW 30% 58% ~15
Slide 134: Lean and independent Corporate Governance model
We have a lean and independent Corporate Governance model General Key Highlights shareholders' meeting Independent Chairman 12 Board members Board of directors Executive Non-Executive directors directors 2 Executive directors (CEO and CFO) 33% Women Management General team secretary 50% Independent
Slide 135: Evolved management approach for regional hubs
We have evolved our management approach to meet our regional hub strategy, whilst ensuring excellence in delivery across Miguel Stilwell d’Andrade CEO Simplified structure with Duarte Bello Rui Teixeira 4 regional hubs COO Europe & CFO LatAm Led by 20 avg. years of experience in the sector Pedro Bau
Slide 136: Global, agile and efficient organization
We are evolving as a global, agile and efficient organization 2026 2022 2020 2025 >4,000 2015 ~3,000 2010 ~1,700 ~1,000 ~800 Headcount Talent strategy Strong value proposition Attraction Experience Development Bringing on-board the best talent Nurturing an unrivaled workplace Preparing for the futur
Slide 137: Managing the entire value chain
We are managing the entire value chain to ensure the delivery of competitive and quality projects, at the highest excellence standards Development Local development knowledge and multi-partnership network Asset financing and tax equity structuring track record in the US >15 GW ~50% Wind & Solar port
Slide 138: Working towards Net Zero with best ESG practices
We are working every day towards Net Zero, operating with the best ESG practices along the value chain ESG Framework, 2026 Targets WE will Decarbonize for a climate-positive world >4 GW / year green energy Ambition to Net Zero by 2040 WE are Empowering our communities Protecting our planet Engaging
Slide 139: Consolidating leadership with enhanced financials and dividend policy
We are consolidating our leadership position in energy transition, driving enhanced financials and an attractive dividend policy Energy transition leader with accelerated … delivering strong earnings growth growth… Recurring Net Income, € Bn Net zero ~9% p.a. 0.9 0.67 >4GW/yr 2022 2026 renewables de
Slide 140: Prudent financial policy with centralized management
We have a prudent financial policy with a centralized management, complemented by a selective Project Finance approach Debt and Interest rate Green liquidity Centralized and foreign Cost of financing management funding Tax Equity exchange risk Debt Green financing Active management Centralized fundi
Slide 141: Diversified sources of cash
We have diversified sources of cash to deliver on our growth Expansion net investment 2023-26 (€ Bn) Net investment expansion Sources of cash ~6 Asset Rotation2 >50% of net ~4 TEI investment financed Gross ~10 by organic cash-flow Investments1 ~20 ~6 ~1 ~4 Net investment Organic Cash Flow3 Equity ra
Slide 142: Delivering superior value with sound balance sheet
We are delivering superior value, while keeping a sound balance sheet and risk profile 2022 2024 2026 Step-up in delivery Deployment, GW/year 2.1 ~3.9 ~4.7 ~2.6 GW 2026 vs. 2022 Avg. 2023-24 Avg. 2025-26 Increased results with superior renewables EBITDA, € Bn 2.2 ~2.5 ~3.0 ~9% CAGR 2022-26 portfolio
Slide 143: A leading global renewables major
New energy sector Stepping-up to the A leading global at the center of the challenge and aiming economy towards an ambitious Net Zero renewables major >4 GW/year growth plan Pure 100% renewable player with extensive track-record, know-how and core capabilities 143
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EDP – Energias de Portugal — Investor Day (March 2023) on 6ix