EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — EDP Renováveis — H1 2021 Earnings Presentation
29 slides from EDP Renewables SA's earnings presentation, Jul 28, 2021
Slide 1: 1H21 Results
1H21 RESULTS July 28th, 2021 15:00 CET | 14:00 UK / Lisbon www.edpr.com 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP Renováveis, S.A. (the "Company") solely for use Forward-looking statements include statements regarding: objectives, goals, strategies, at the presentation to be made on this date and its purpose is merely of informative nature outlook and growth pro
Slide 3: Agenda
Agenda 1 Key highlights 1H21 2 1H21 Results 3 Closing remarks 4 Annex 3
Slide 4: Key highlights 1H21
Key highlights 1H21 4
Slide 5: EDPR continues to accelerate growth with added visibility on asset rotation deals
EDPR continues to accelerate growth with added visibility on the ongoing Asset Rotation deals, while maintaining solid operations Growth Value Excellence Accelerated and Ongoing asset High quality teams and selective growth rotation program efficient operations +2.1 GW added YoY €1.9bn of Asset rota
Slide 6: EDPR has now 6.7 GW secured, with sound returns and risk profile
EDPR has now 6.7 GW secured, with sound returns and risk profile… Accelerating growth across all platforms, with +0.8 GW … maintaining a selective and disciplined secured since the CMD… investment approach Secured Capacity 2021-23 GW Target Actual % 2021-25 additions 30% 34% IRR/WACC >1.4x ~1.5x % 2
Slide 7: Well protected from recent capex cost inflation
… which are well protected from recent capex cost inflation EDPR investment policy is to contract major equipment upfront at fixed price with investment decision based on latest real-time quotes requested to suppliers Major equipment Fixed price with no commodity risk for EDPR ~85% fully contracted(
Slide 8: EDPR continues to ramp-up pipeline with short-term visibility on growth
EDPR continues to ramp-up pipeline and has significant short-term visibility on additional growth Secured capacity and Pipeline > 50 GW 3.7 GW of PPAs under negotiations and shortlisted 2.5 GW 1.1 GW 0.1 GW Over 30 GW of RES expected to be auctioned in 2021 44 in EDPR markets 12 GW 3.1 GW A-5 5.8 GW
Slide 9: Expanding geographic footprint to tap further growth opportunities
In addition, EDPR is expanding its geographic footprint to tap further growth opportunities in attractive markets In Q2, EDPR entered into high growth renewable markets with …which are fully aligned with EDPR long-term contracted remuneration frameworks… growth strategy Rationale RES targets Remuner
Slide 10: Asset rotation execution strong with €1.9bn of proceeds secured
Asset rotation execution has been strong with €1.9bn of proceeds secured at attractive multiples and €101m gain already booked in 1H21 Strong AR execution at attractive multiples, showcasing the value of EDPR projects EV/MW €m 1.7 1.25 1.6 €1.9bn of proceeds, ~25% of €8bn AR target for 2021-25 €1.9b
Slide 11: 1H21 Results
1H21 Results 11
Slide 12: Strong performance in EU&BR, impacted by Q1 ERCOT event
Strong performance in EU&BR, but impacted by Q1 one-off ERCOT event, lower generation in US and lower capital gains YoY 1H21 Key Figures Highlights EBITDA €654m Gains of €118m(1) at EBITDA (YoY -€27m) and €97m at Net profit (YoY -€44m) -18% YoY Strong performance in Europe & Brazil with EBITDA +€40m
Slide 13: EDPR portfolio increased to 12.6 GW, +2.1 GW added YoY
EDPR portfolio increased to 12.6 GW, with +2.1 GW added YoY, and we have 2.9 GW under construction Evolution of Installed Capacity (EBITDA MW + Equity Consolidated) MW Under Added YoY Construction 2,059 13,497 (913) 12,584 11,439 +763 MW +1,180 MW • Spain: 237 MW • US: +1,162 MW +767 MW 275 MW net (
Slide 14: In 1H21 EDPR achieved a 31% load factor
In 1H21 EDPR achieved a 31% load factor with recovery in Europe & Brazil offset by Q1 one-off ERCOT event and low wind resource in US Net Capacity Factor 1H21 Gross Capacity Factor 1H21 1H21 YoY 1H21 YoY vs P50 28% +1pp 29% +1pp 97% 34% -2pp 38% -1pp 94% 34% +8pp 35% +7pp 105% 31% -0.5pp 34% - 9
Slide 15: Electricity output increased 5% YoY
Electricity output increased 5% YoY, with capacity additions providing a strong contribution TWh Electricity Production % YoY (TWh) From overall new installed capacity +14% along with higher wind resource in +5% Iberia, despite RoE performance. 14.7 +0.9 -0.2 15.3 Driven by lower availability due t
Slide 16: Average price at €51/MWh
Average price at €51/MWh, reflecting an increasingly competitive portfolio, with new additions driving lower prices % EDPR Price Evolution 1H21 YoY(1) (€/MWh) SP -18% (asset mix and above standard production going to pool) €77.2 -6% PT -1% (from new additions and tariff -7% extension) & RoE +7% (mo
Slide 17: Revenues decreased 6% YoY, but only 0.5% like for like
Revenues decreased 6% YoY, but only 0.5% like for like Revenues Main drivers for Revenues performance (€ million) Volume: +8% YoY (+€72m) -6% MW additions (+7%; +€61m) & Wind resource (+1%; +€11m) 913 -0.5% ex Sell-down 856 Sell-down: -8% YoY (-€69m) On the back of US and Spanish Asset rotation tran
Slide 18: Core Opex per avg. MW +1% YoY (-3% adjusted)
Core Opex per avg. MW +1% YoY (-3% adjusted), on the back of O&M strategy and despite upfront scale up to cope with accelerated growth Opex (excludes Other Operating Income) (€ million) Core Opex/Avg. MW (€k) (Supplies & Services and Personnel Costs) +7% +1% -3% Adjusted(3) 20.5 20.7 Levies & Non-re
Slide 19: EBITDA of €654m with balanced split between Europe and the US
EBITDA of €654m with a balanced ~50/50 split between Europe and the US, reflecting the low-risk profile of EDPR portfolio EBITDA YoY EBITDA per Region(1) (€ million) (%) RoE -18% Portugal 16% 793 Brazil -13% 16% 1% Adj. ex FX 654 Spain €654m 19% North America 48% 1H20 1H21 1. Includes hedges in Spai
Slide 20: Net Profit totaled €142m, decreasing 44% YoY
Net Profit totaled €142m decreasing 44% YoY, driven by top line performance and lower gains, partially offset by improved financials 1H21 EBITDA to Net Profit (€ million) €m YoY (1) EBITDA 654 -€139m Top line performance and lower gains 291 Construction delays in the US due to the weather D&A +€2m
Slide 21: Net Debt and Tax Equity decreased €165m
Net Debt and Tax Equity decreased €165m with cash flow, AR proceeds and the capital increase offsetting growth acceleration 1H21 from RCF to Debt and TEI variance 1H21 Financial Debt Breakdown (€ million) (%) +496 Variable 9% (398) 14% Other 467 +1,500 +165 33% 78% (1,823) Fixed Loans 86% with (77)
Slide 22: ESG continues at the core of EDPR
ESG continues at the core of EDPR, with YoY evolution reflecting acceleration of growth Environment Climate Change Circularity (3) Biodiversity CO2 avoided (1) CO2 emitted (2) Waste Recovery rate Spills & fires (4) Near misses 10 mt 0.2 % 34 kg/GWh 76 % 0 40 -2% vs 1H20 Flat vs 1H20 +26% vs 1H20 +2.
Slide 23: Closing remarks
Closing remarks 23
Slide 24: Strong and highly supportive environment
We continue to witness a strong and highly supportive environment and EDPR is well positioned to capture the opportunity April-21 Path to 100% carbon-free electricity by 14-Jul EU Fit for 55 legislative package focusing 2035 in cutting emissions by at least 55% vs. 1990 levels, until 2030 June-21 IT
Slide 25: Key takeaways
Key takeaways EDPR has now 6.7 GW secured with sound returns and risk profile, which are well protected from recent capex cost inflation EDPR continues to ramp-up pipeline and has significant short-term visibility on additional growth In addition, EDPR is expanding its geographic footprint to tap fu
Slide 26: Annex
renewables 26
Slide 27: EDPR 6.7 GW of secured capacity
EDPR 6.7 GW of secured capacity 2.9 2.2 North America Europe GW GW 33% secured 32% secured 1.2 GW 1.6 GW 0.2 GW 6.7 1.3 GW 0.6 GW 0.3 GW post 2025 8.8 20 GW1 Gross 0.3 GW post 2025 Additions 2021-25 1.4 28 LatAm 1.7 2.9 APAC MW GW 58% secured 2% secured 1.4 GW 0.3 GW 28 MW GW secured 1. EBITDA + Equ
Slide 28: IR Contacts
IR Contacts André Fernandes, Head of IR Pia Domecq Celia de Cominges Duarte Andrada E-mail: ir@edpr.com Phone: +34 914 238 402 Fax: +34 914 238 429 Serrano Galvache 56, Edificio Olmo, 7th Floor 28033, Madrid - Spain Site: www.edpr.com EDPR Online Link Results & Presentations: www.edpr.com/en/investo
Slide 29: edp
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