Edp S.a. · EURONEXT:EDP
Edp — Energias de Portugal — Investor Presentation (May 2021)
25 slides from Edp's investor presentation, May 2021
Slide 1: Investor Presentation
Investor Presentation Lisbon, May 2021
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP - Energias de Portugal, S.A. (the "Company") Forward-looking statements include statements regarding: objectives, goals, strategies, solely for use at the presentation to be made on this date and its purpose is merely of outlook and growth prospects;
Slide 3: Successful execution of EDPR Capital Increase well received by the market
Successful execution of EDPR Capital Increase well received by the market, de-risking the 21-25 plan and reinforcing our Balance sheet Accelerated & sustainable Positive market feedback and ….Reinforcement of Balance Sheet growth investor appetite… acknowledged by rating agencies S&P Upgrades to BBB
Slide 4: +6.4 GW capacity additions secured for 21-25 and Asset Rotation on track
+6.4 GW capacity additions secured for 21-25 and Asset Rotation on track at attractive valuations Accelerated & sustainable Continued Accelerated and Sustainable ~€1.1Bn deals signed with closing in 2021 growth Growth… & expected gains of ~€0.2Bn +1.2 GW(1) of Wind & Solar net capacity added over th
Slide 5: We will keep delivering attractive returns and sound contracted profile
We will keep delivering attractive returns and sound contracted profile Clear investment framework … being selective in value-accretive and strong track record… opportunities Achieved1 Threshold Broad Multi-tech Multi-geo Multi-product reach >5 RES 20 Government tenders, IRR/WACC >1.4x 1.4x technolo
Slide 6: Continued political support towards decarbonization
Continued political support towards decarbonization with positive developments for the overall sector Accelerated & sustainable growth 29-Mar Biden Administration pushes for US targets NextGen EU Funds (€ 750 Bn) 30 GW of offshore wind by 2030 focused at least 37% in Climate transition Mar/Apr and 2
Slide 7: Organizational alignment with global business platforms in place
Organizational alignment with global business platforms in place together with a clear roadmap to deliver the next growth cycle Future-proof organization Structure simplification and organizational 40 Global initiatives launched to fast-track alignment with global business platforms to drive executi
Slide 8: Important milestones achieved on EDP's commitment to best Governance standards
Important milestones achieved on EDP’s commitment to implement the best Governance standards ESG excellence and attractive returns Newly appointed General Supervisory New EBD’s remuneration policy in Board line with best practices Dual Model of Corporate Governance, ensuring Long-term incentive sett
Slide 9: Strategic commitments on track as we step up to the challenge
Strategic commitments on track as we step up to the challenge to deliver superior value creation Key figures and targets 1Q21 €24 Bn CAPEX in energy transition(1) €0.7 Bn (93% in RES + Networks) 6.4GW secured (32%) & +3.2 GW 20 GW gross additions(1) added YTD+U/C €8 Bn asset rotation ~€1.1 Bn signed
Slide 10: We will deliver superior value, while keeping a solid balance sheet
We will deliver superior value, while keeping a solid balance sheet and low-risk profile 2020 2023 2025 CAPEX1, € Bn/yr Step-up investment plan with 3.7 4.5 4.6 +1 Bn 2025 vs. 20 renewables focus EBITDA2, € Bn Increased results with distinctive 3.5 4.2 4.7 +6% CAGR 2020-25 energy transition profile
Slide 11: We will deliver superior value to our shareholders
We will deliver superior value to our shareholders Superior green positioning … delivering strong earnings growth… and accelerated growth… Net income2, € Bn 8% p.a. All green ~1.2 2x by 2030 ~0.8 ~1.0 solar + wind installed capacity by 2025 €24 Bn >95% 20202 2023 2025 energy transition energy transi
Slide 12: We are stepping up to the challenge
We are stepping up to the challenge By 2025 By 2030 €24 Bn >50 GW CAPEX in energy transition renewables additions Leading the energy transition to create superior value 4 GW/yr 100% All green by 2030 renewables deployed renewables generation Double 100% solar+wind installed capacity energy transitio
Slide 13: We will deliver unparalleled investment levels aligned with the energy transition
We will deliver unparalleled investment levels fully aligned with the energy transition Significant investment … with strong focus on Renewables, across acceleration… key markets in Europe and North America CAPEX1, € Bn/yr CAPEX1, Cumulative, € Bn, 2021-25 +65% 4.8 ~80% ~40% Renewables Europe ~15% ~
Slide 14: We will grow our presence across technologies
We will grow our presence across technologies, with differentiating value propositions Strong visibility Hydro Global leadership Extensive pipeline with Top 4 global player additions ramping up quickly Differentiation Mostly maintenance investments Solar Cost competitiveness Capture repowering, hybr
Slide 15: We have +6.4 GW capacity additions secured (32%)
We have +6.4 GW capacity additions secured (32%) evenly split per geography 2.6 2.1 North America Europe GW GW 30% secured 32% secured 1.2 GW 1.4 GW 0.2 GW 6.7 1.2 GW 0.6 GW 0.3 GW post 2025 8.8 20 GW1 Gross 0.3 GW post 2025 Additions 2021-25 1.4 1.6 2.9 Rest of World LatAm GW Evaluating several 55%
Slide 16: We will strengthen our leadership position in wind onshore
We will strengthen our leadership position in wind onshore Pipeline as of Dec 2020 Target additions 2021-25 (GW) Current presence1 XX % in additions XX Total installed capacity We have a strong onshore presence across the globe … consolidating leadership that will be reinforced… and exploring growth
Slide 17: We will build a sound market presence in Solar
We will build a sound market presence in Solar Pipeline as of Dec 2020 Target additions 2021-25 (GW) Current presence1 XX % in additions XX Total installed capacity We have robust secured additions and strong pipeline in solar… … adopting a differentiated approach to clients Rest of North America2 E
Slide 18: Leading global player in offshore wind through the 50:50 JV Ocean Winds
We aim to be a leading global player in offshore wind through the 50:50 JV Ocean Winds (OW) Step-change in capacity with a global footprint… … with results already in place Installed Under construction Under development ✓ PPA/Tariff secured Pursuing greenfield development, Project visibility for 6.6
Slide 19: We will double growth in renewables, adding 4 GW/year
We will double growth in renewables, adding 4 GW/year with clear visibility Step-up growth in renewables… … with a robust pipeline to address target additions Gross additions, GW1/yr Total gross additions, GW1 20 GW 452 ~3x Pipeline 4.6 announced as of 2019 (16 GW) 3.5 36 ~3x 20 ~55% Target addition
Slide 20: Networks - Key highlights
Networks - Key highlights +xx Growth, 2020-25 ~€0.7 Bn annual Regulated Asset Base EBITDA to increase by 50% organic CAPEX to increase by ~€2 Bn EBITDA, € Bn CAPEX1, € Bn RAB2, € Bn 5% p.a. excluding Viesgo acquisition 3.4 40% 7.1 1.3 0.1 8% p.a. 1.0 0.1 1.0 0.3 5.1 1.3 0.9 0.6 0.1 0.8 0.2 2.2 4.8 0
Slide 21: Client Solutions & Energy Management - Key highlights
Client Solutions & Energy Management - Key highlights ~€0.2 Bn annual CAPEX Step-change growth in Solar DG EBITDA to increase by 15% CAPEX, € Bn1 Cumulative contracted PV, GWP3 EBITDA, € Bn 30% p.a. Client Solutions 2% p.a. 0.9 2.2 0.5 0.4 Solar DG and 0.1 X10 e-mobility Solar DG and e-mobility 0.6
Slide 22: Recurring EBITDA -8% YoY, US renewables penalized by Ercot event
Recurring EBITDA -8% YoY (flat ex-forex), US renewables penalized by Ercot event/low load factors, normalization of Energy Management Iberia Recurring EBITDA(1,2) €m YoY growth, % -8%YoY (ex-forex ~0%) ∆ YoY 912 ERCOT | Polar Vortex in Feb-21 -€35m 844 Wind resources in US -7% vs. LT avg EDPR avg. I
Slide 23: Net Debt increase mostly explained by cash capex & working capital
Net Debt increase mostly explained by cash capex & working capital optimization in the context of high financial liquidity Adj. Net x Debt / EBITDA Change in Net Debt (1) FFO/Net Debt (2) €Bn % 3 13.1 0.1 12.2 1.2 ~21% 0.2 1.5 ~19% ~19% 11.6 -€0.2 Bn WC +€0.5Bn WC on fixed asset suppliers Net Debt O
Slide 24: Recurring Net Profit +6% benefitting from improved financial results
Recurring Net Profit +6% benefitting from improved financial results and lower effective tax rate Recurring Net Profit (1) Δ YoY Recurring Net Profit (1) €m €m 6% YoY (ex-forex +15%) EBITDA 844 -69 D&A and 159 369 +8 150 Provisions EBIT 475 -61 Net Financial Costs 123 +26 Income Taxes 63 +31 1Q20 1Q
Slide 25: IR Contacts
IR Contacts E-mail: ir@edp.com Phone +351 210 012 834 Site: www.edp.com
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