EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — EDP Renováveis — Investor Presentation (May 2023)
44 slides from EDP Renewables SA's investor presentation, May 2023
Slide 1: Investor Presentation May 2023
Investor Picture Presentation May 2023 www.edpr.com
Slide 2: Agenda
Agenda 1 Our Sector 2 EDP Group Vision 3 EDPR at a Glance 4 Our Strategy 5 1Q23 Results 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 warmest year since 1880 CO2 emissions 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: Unprecedented 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 14.8 GW
EDPR at a Glance Global pure renewables player with a portfolio of 14.8 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 with secular growth and controlled debt
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 to meet 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 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 ~17 GW Flexible pipeline (2023-26) allowing to adjust growth pace… 4.7 >5x 3.9 … with acceleration of organic in-house 2.4 development… 1.2 0.7 … and capturin
Slide 18: ~17 GW of renewable capacity added in 2023-26
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
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 % % 2% ~2x installed ~5 ~27 7% 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 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 2026 >4,000 ~3,000 2025 >4,000 ~1,000 ~1,700 ~800 2022 2026 Headcount 2015 2020 2010 Talent strategy Strong value proposition Attraction Experience Development Bringing on-board the best talent Nurturing an unrivaled workplace Prepa
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: Continuing to be an ESG leader recognized by top-tier institutions
Appendix … 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 3.6/5 90/100 Sustainability Percentile rank: 73 #1 integrated electric Yearbook Member (Jun-22) utilities
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 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 portfo
Slide 30: 1Q23 Results
1Q23 Results
Slide 31: Strong operational performance with 1.7 GW of new additions
1Q23 Results EDPR begins the year delivering strong operational performance on the back of 1.7 GW of new additions leading to higher production Installed Capacity YoY Net Capacity Factor 1Q23 Electricity Production YoY (EBITDA + Equity GW) (%) (TWh) NCF YoY 1Q22 14.0 1Q22 9.2 32% -0.1pp MW Added 1.7
Slide 32: EBITDA +14% YoY with growth from four regional hubs
1Q23 Results EBITDA +14% YoY with growth contribution from the four regional hubs, backed by outstanding top line performance EBITDA per geography (€m) YoY 1Q22 1Q23 YoY +14% 448 Installed Capacity1 GW 14.0 14.8 +5% 394 Renewables Index (vs. P50 GCF) % 102% 98% -3pp +21% Europe Electricity Generatio
Slide 33: Net Debt -3% YTD
1Q23 Results Net Debt -3% YTD, with the €1bn Capital Increase being offset by €1bn Net Expansion Investments, Organic CF impacted by WC in Spain Net Debt Evolution from Dec-22 to Mar-23 (€bn) LTM Net Debt/EBITDA €1.1bn Expansion Capex (€0.9bn Capex & €0.2bn PP&E) €0.1bn of Financial Investments and
Slide 34: Financial Results penalized by MTM forward points and higher cost of debt
1Q23 Results Financial Results strongly penalized by MTM forward points along with higher average cost of debt and average gross debt YoY Financial Results (€m) 153 FX, Derivatives & Other performance mainly driven by mark to 126 60 market of EUR/USD currency hedging 111 111 35 29 29 74 9 Cost of De
Slide 35: Net Profit at €65m (flat YoY)
1Q23 Results Net Profit at €65m (flat YoY), driven by strong top line evolution offset by clawbacks and higher financial costs 1Q23 EBITDA to Net Profit (€m) YoY EBITDA 448 Solid top line performance (revenues +24% YoY) +€54m despite clawbacks and lower contribution from OW D&A 1 (181) (€19m) Driven
Slide 36: Scrip Dividend program now launched
1Q23 Results Scrip Dividend program now launched providing optionality EDPR Scrip Dividend Terms May 2023 1 share of EDPR acquired until the last trading date equals to 1 incorporation 1 2 3 4 5 6 7 right. By May 9th, shares will trade ex-rights 8 9 10 11 12 13 14 15 16 17 18 19 20 21 By default, sh
Slide 37: Key Takeaways
1Q23 Results Key Takeways Strong top line performance in 1Q23, driven by increase in generation and avg. price resulting in EBITDA of €448m (+14% YoY). Net income flat YoY at €65m. EDPR average selling price benefitting from new PPAs, inflation updates gradual hedges rolling over. Decline of electri
Slide 38: Appendix
Appendix
Slide 39: 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 40: Renewables will accelerate significantly 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 41: Reinforcing our 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 42: 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 43: 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 Inflation linked projects, representing 80% of secured capacity Contracted and inflation linked Partially contracted Offshore Wind, GW Contracted revenues Gross Net COD Project Technology an
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