EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — Investor Presentation (November 2023)
47 slides from EDP Renewables SA's investor presentation, November 2023
Slide 1: Investor Presentation
Investor Picture Presentation November 2023 www.edpr.com Fulgatore Italy
Slide 2: Agenda
Agenda 1 Our Sector 2 EDP Group Vision 3 EDPR at a Glance 4 Our Strategy 5 9M23 Results & Updates 6 Appendix 2
Slide 3: Our Sector
Our Sector
Slide 4: The energy transition is ever more pressing to address climate change
Our Sector The energy transition is ever more pressing to address climate change… in 2022… 5th Record high CO2 emissions warmest year since 1880 8 ocean stations Antarctic Sea ice observed water levels at an reached its all-time high lowest min. extent +100m +100,000 ha people living in coastal area
Slide 5: Need for endogenous, affordable and reliable energy
Our Sector … 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 indep
Slide 6: Strategic commitments to accelerate the energy transition
Our Sector Many reactions came with unprecedent strategic commitments to accelerate the energy transition Change is already happening... … with existing challenges being addressed Inflation Reduction Act > $400bn in climate spending to reduce emissions >40% by 2030 Expansion and extension of PTCs an
Slide 7: EDP Group Vision
EDP Group Vision
Slide 8: EDP Group - Leading the Energy transition to create superior value
EDP Group Vision EDP Group - Leading the Energy transition to create superior value EDP Group Our commitments Key figures and targets Accelerated and sustainable growth €25bn 4.5 GW/yr >50 GW gross investment 2023-26 gross additions 2023-26 RES gross additions 2021-30 ESG excellence and future-proof
Slide 9: EDP Group - Segments fully aligned with energy transition
EDP Group Vision EDP Group - Segments fully aligned with energy transition Distribution & Transmission <€5.0bn €7.0bn €7.5bn ~€8.0bn We are an Networks RAB 100% energy 93% transition Renewables 74% Generation leader, 60% >50 GW 33 GW creating Renewables 22 GW Installed Capacity superior value EBITDA
Slide 10: EDPR at a Glance
EDPR at a Glance
Slide 11: Global pure renewables player with a portfolio of 15.1 GW
EDPR at a Glance Global pure renewables player with a portfolio of 15.1 GW with more than 3,000 employees worldwide EDPR global wind and solar installed capacity Leading pure renewables player, with ~20 years of track record Differentiated and leading position in the Europe attractive US market Ocea
Slide 12: Extensive track record of secular growth with debt under control
EDPR at a Glance Extensive track record that has delivered secular growth with debt being kept under control Remarkable performance over the last decade… … backed by outstanding execution of our business plans 2012 2022 Solid portfolio creation through the EBITDA 938 +9% 2,157 2x investment in quali
Slide 13: Lean and independent Corporate Governance model
EDPR at a Glance Lean and independent Corporate Governance model in line with best practices Key Highlights1 General Shareholders’ Meeting Independent Chairman 12 Board members Board of Directors Executive Directors Non-Executive Directors 2 Executive directors (CEO and CFO) 33% Women Management Tea
Slide 14: Management approach supporting regional hub strategy
EDPR at a Glance Supported by the management approach to meet EDPR’s regional hub strategy, whilst ensuring excellence Miguel Stilwell d’Andrade CEO Simplified structure Duarte Bello COO Europe & Rui Teixeira CFO with 4 regional hubs LatAm Led by 20 avg. years of experience in the sector Pedro Bauti
Slide 15: Our Strategy
Our Strategy
Slide 16: Strengthening our commitment to lead the energy transition
Our Strategy We strengthen our commitment to lead the energy transition and create superior value, further reinforced by the current context >4 GW/yr Net Zero renewables deployed 2023-26 by 2040 A leading global renewables major Double wind and solar installed Pure 100% renewable player capacity by
Slide 17: Successfully ramping up growth, with flexibility to accelerate
Our Strategy We are successfully ramping up growth, with flexibility to further accelerate… EDPR gross additions Average GW per year >4 GW/yr Flexible pipeline allowing to adjust ~17 GW growth pace… (2023-26) >5x … with acceleration of organic in-house 2.4 development… 1.2 0.7 … and capturing additi
Slide 18: ~17 GW additions in 2023-26, geographically and technologically diversified
Our Strategy … adding to our portfolio ~17 GW of renewable capacity in 2023-26, with geographical and technological diversification… Additions by geography Additions by technology GW GW Wind Offshore Wind Onshore ~6.3 ~0.7 Europe 37% 4% ~1.4 Solar DG ~5.0 29% 8% ~1.2 APAC ~17 GW1 7% ~17 GW1 Gross Ad
Slide 19: Leveraging superior assets and infrastructure for further deployment
Our Strategy … while leveraging our superior assets and infrastructure as a competitive advantage for further increased renewables deployment Hybridization Repowering Storage Hydrogen Leveraging existing grid Increasing installed capacity +0.5 GW battery storage Allowing for RES deployment connectio
Slide 20: Solid investment plan across core technologies
Our Strategy … backed by a solid investment plan that will consolidate our presence across our core 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 teams Solar Utility
Slide 21: Leveraging our distinctive Asset Rotation model
Our Strategy We will keep leveraging our distinctive Asset Rotation model… Asset Rotation strategy allows for superior value creation… … proven by a consistent track record1 ~ €7bn ~€20bn AR proceeds and capital gains EV2 rotated track record since 2012 >4 GW/yr Upfront value crystallization reinves
Slide 22: Crystallizing value to empower growth
Our Strategy … crystallizing value that will enable to further empower growth… 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 2021-22 BP BP 2021-22 BP 2021-25 actua
Slide 23: Consolidating our superior renewables portfolio
Our Strategy … consolidating even more our superior renewables portfolio Evolution of installed capacity 2026 Geographic mix 2026 Technologic mix GW % % ~2x installed ~5 ~27 7% 2% 2% 2% capacity (vs. 2020) 7% 8% ~17 27 GW 48% 27 GW 30% ~15 ~85% 34% 58% ~12 From core low risk markets ~9 North America
Slide 24: Diversified sources of cash to deliver on our growth
Our Strategy Diversified sources of cash to deliver on our growth Net investment expansion 2023-26 Sources of cash 2023-26 €bn €bn ~6 Asset Rotation2 >50% of net ~4 investment financed TEI Gross ~10 by organic cash-flow Investments1 ~20 ~6 ~1 ~4 Net investment Organic Cash Flow3 Equity raise Net Deb
Slide 25: Managing the entire value chain
Our Strategy We manage 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% Portfolio
Slide 26: Evolving as a global, agile and efficient organization
Our Strategy Evolving as a global, agile and efficient organization ~3,000 2025 ~1,000 ~1,700 ~800 Headcount 2022 2015 2020 2010 Talent strategy Strong value proposition Attraction Experience Development Bringing on-board the best talent Nurturing an unrivaled workplace Preparing for the future, emp
Slide 27: Working towards Net Zero with best ESG practices
Our Strategy Working every day towards Net Zero, operating with the best ESG practices along the value chain… 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 our partne
Slide 28: ESG leader recognized by top-tier institutions
Our Strategy … to continue being an ESG leader recognized by top-tier institutions and aim to maintain a leadership position in ESG rating performance Entity Rating Entity Rating Through EDP 76/100 3.9/5 88/100 Sustainability Percentile rank: 85 #1 electric utilities Yearbook Member (Jun-23) (Dec-23
Slide 29: Delivering superior value with a sound balance sheet
Our Strategy Delivering superior value, while keeping a sound balance sheet and risk profile 2022 2026 Step-up in delivery Deployment GW/year 2.1 ~4.7 ~2.6 GW 2026 vs. 2022 Avg. 2025-26 Increased results with superior renewables EBITDA €bn 2.2 ~3.0 ~9% CAGR 2022-26 portfolio Earnings growth through
Slide 30: 9M23 Results & Updates
9M23 Results & Updates
Slide 31: 2023 performance penalized by short-term headwinds
9M23 Results & Updates 2023 performance continues penalized by short-term headwinds in line with what was stated in the previous quarter The P&L impact is temporary, not affecting medium-term earnings prospects EBITDA impact 9M23 2023 Weather cycles continue affecting quarterly results but no Wind g
Slide 32: 3Q23 generation penalized by below average wind volumes in US
9M23 Results & Updates 3Q23 renewables generation penalized by below average wind volumes in US due to cyclical El Niño effect already embedded in LT projections 3Q23 generation continue being penalized by below avg. wind resources namely in US EDPR Renewables generation (TWh) +3% Generation +3% YoY
Slide 33: Recurring EBITDA -3% YoY
9M23 Results & Updates Recurring EBITDA -3% YoY positively impacted by Asset Rotation Gains mitigating weak wind resources and lower electricity prices in Europe Recurring EBITDA per region (€m) 9M22 9M23 YoY YoY Installed Capacity(1) GW 14.3 15.1 +6% -3% 1,482 Electricity Generation TWh 24.4 25.2 +
Slide 34: Strong Asset Rotation execution in 3Q23
Strong Asset Rotation execution with two sizeable transactions in 3Q23 at attractive valuations Diversified high-quality portfolio by market and by contracted/merchant profile support resilient Asset Rotation Strategy AR Gains/Invested Capital (%) Avg. EV/MW(1) Assets’ valuations positively impacted
Slide 35: Net Debt evolution from Dec22 to Sep23
9M23 Results & Updates Net Expansion Investments of €2.7bn and €1bn equity raise result in +€1.1bn Net Debt; Organic CF impacted by non-cash items Net Debt Evolution from Dec22 to Sep23 (€bn) LTM Net Debt/EBITDA €2.9bn Expansion Capex, €0.2bn of Financial Investments and €0.4bn AR Proceeds 1.0 +€1.1
Slide 36: Rebalancing of debt mix by currency
9M23 Results & Updates Rebalancing of debt mix by currency towards assets’ mix: diversification of equity exposure by market, ~€100m lower int. costs estimated in 24-26 Reducing our financial exposure to USD EDPR’s financial debt per currency (%) 82% 18% Fixed Variable 11% Rebalance of debt mix by c
Slide 37: Financial Results and debt maturity
9M23 Results & Updates Financial Results decreasing YoY due to lower FX & Derivatives despite higher avg. gross debt Financial Results (€m) Debt by maturity & counterparty +30% (%) YoY 4.6 296 299 257 66 229 70 (42) 0.7 0.6 0.6 0.4 2023 2024 2025 2026 >2026 9M22 Non-interest 9M22 adj Interest 9M23 a
Slide 38: Net Profit of €467m (+12% YoY)
9M23 Results & Updates Net Profit of €467m (+12% YoY) impacted by top line, compensated with strong execution of AR transactions and improved financials and taxes 9M23 EBITDA to Net Profit (€m) YoY Driven by lower prices YoY, OW extraordinary EBITDA 1,427 (€56m) contribution in 2022, clawbacks and U
Slide 39: Leading the energy transition to create superior value
9M23 Results & Updates Leading the energy transition to create superior value Increase of PPA and forward market electricity prices along with the downward trend in some relevant capex components, like solar panels, supports value enhancing growth at attractive returns while maintains risks under co
Slide 40: Appendix
Appendix
Slide 41: Clear investment framework, selective and disciplined approach
Appendix We are keeping our clear investment framework, maintaining our selective and disciplined approach 9.3 GW secured representing ~55% of the total BP target of which ~3 GW from 2023 YTD meeting the targeted profitability 2023 YTD approved & secured investments by technology 2023 YTD approved &
Slide 42: A way for a better tomorrow
Appendix A way for a better tomorrow All in all – our ESG commitments 2026 2030 Ambition Goal 2022 target ambition Decarbonize: for a climate-positive world Renewable capacity additions (GW/year) 2.1 4 - Communities: Empowering our Global investment in communities, cumulative2 €2.4m €16m €28m Commun
Slide 43: Renewables will accelerate and are the most competitive option
Appendix 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 price
Slide 44: Reinforcing established portfolio in core low risk markets
Appendix We are reinforcing our established portfolio, focusing on our core low risk markets Target Additions 2023-26 breakdown Capacity Additions, GW Europe North America South America APAC ~1.5 ~2.1 ~1.3 ~0.1 Gross additions ~3.9 ~4.1 ~0.9 ~0.5 - ~0.7 - ~0.6 ~ 17 GW in 2023-26 ~0.7 - - - ~0.1 ~0.4
Slide 45: OW building a sizeable and attractive offshore portfolio
Appendix OW has been building a sizeable and attractive offshore portfolio, providing significant visibility on growth over the next 10-15 years Offshore Wind Ocean Winds continues to grow with a total portfolio of 16.6 GW… … which provides strong visibility on growth post 2026 Portfolio, GW Gross O
Slide 46: 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
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