EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — EDP Renováveis — H1 2022 Earnings Presentation
25 slides from EDP Renewables SA's earnings presentation, Jul 27, 2022
Slide 1: 1H22 Results Presentation
1H22 Results Picture Presentation July 27th, 2022 14:00 CET | 13:00 UK / Lisbon www.edpr.com
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP Renováveis, S.A. (the "Company") solely for use at Forward-looking statements include statements regarding: objectives, goals, strategies, the presentation to be made on this date and its purpose is merely of informative nature and, as outlook and gr
Slide 3: Agenda
Agenda 1 Update on Strategy Execution 2 1H22 Results 3 Closing Remarks 4 Annex 3
Slide 4: Update on Strategy Execution
Update on Strategy Execution
Slide 5: EDPR delivers firm performance in the 1H22
EDPR delivers firm performance in the 1H22 • EBITDA +49% to €976m, installed capacity +10%, renewables resources +2% vs. LT avg., average selling price +27% 17.8 TWh Growth (+16% YoY) • Net profit +87% to €265m reflecting strong EBITDA performance • Additions of 3.2 GW since 2021 and record high 3.2
Slide 6: Renewables growth has to be supported globally to address security of supply and affordability
Renewables growth has to be supported globally in order to address the security of supply & affordability issues, on top of decarbonization Europe is taking the lead with REPowerEU strong measures with lack of positive developments in United States Europe United States Long term climate support legi
Slide 7: REPowerEU plan presented in May, taking the lead reinforcing ambitious targets
REPowerEU plan presented in May, taking the lead reinforcing ambitious targets EU RES targets for 2030 have been reviewed upwards twice in … and installed capacity needs to increase by 2.5x, to reach the 3.5 years… current target of +1.2 TW by 2030 Renewables capacity (1) GW x2.5 RES energy target f
Slide 8: Ambitious plan but needs to be executed urgently, Member States should address constraints
Ambitious plan but needs to be executed urgently, Member States should address the constraints on renewable deployment Constraints to renewable deployment • Clear and digitalised procedures Faster • Sufficient human resources and skills permitting REPowerEU has presented strong • Mandate of average
Slide 9: EDPR has 53% of its 2021-25 BP target additions committed
EDPR has 53% of its 2021-25 BP target additions committed, with record capacity under-construction at 3.2 GW EDPR committed capacity breakdown vs BP 2021-25 Committed capacity by platform & technology 20 GW 4.1 3.4 3.2 GW PPAs Total committed as of today Under Negotiation 10.6 GW 10.6 GW 0.9 2.2 4.3
Slide 10: Ocean Winds also continues to grow with a total portfolio of 12 GW
Ocean Winds also continues to grow with a total portfolio of 12 GW GW Gross 1.5 3.5 Projects with revenues secured well protected against 12.0 inflation (France, UK, Poland) 6.6 7.0 Moray West 882 MW project in Scotland (14.7 MW x 60, COD 2024) under construction in Jul-22 and awarding of 294 MW CFD
Slide 11: Strong Asset rotation activity expected in 2022 with €2.6bn proceeds secured
Strong Asset rotation activity expected in 2022 with €2.6bn proceeds already secured of the total €8bn Asset rotation target for 2021-25 Out of the 3 transactions signed for 2022, EDPR … and continues to have good prospects for the rest managed to execute €0.6bn proceeds YTD… of the year AR proceeds
Slide 12: EDPR average selling price benefitting from positive market dynamics
EDPR average selling price benefitting from positive market dynamics with gradual hedges roll over expected for 2023-25 period 1H22 market dynamics to be maintaining in 2H22 Hedges roll over and hedging strategy optimization increase exposure to merchant prices over 2023-25 EDPR average selling pric
Slide 13: EDPR is committed to being a top renewables player, while maintaining ESG at the core
EDPR is committed to being a top renewables player, while maintaining ESG at the core of its strategy and operations YoY evolution reflecting acceleration of the growth … while continuously promoting commitments & the implementation of best ESG standards… and initiatives aligned with its strategy En
Slide 14: 1H22 Results
1H22 Results
Slide 15: Strong results benefitting from solid performance of EDPR base portfolio, better resource and prices
Strong results benefitting from solid performance of EDPR base portfolio, better resource and prices 1H22 Key Figures Highlights EBITDA • Clean generation of 17.8 TWh (+16% YoY), avoiding 11 million tons of CO2 emissions €976m • Average price increased +27% YoY mainly by higher prices in Europe and
Slide 16: EDPR portfolio increased to 13.8 GW with higher diversification due to Sunseap
EDPR portfolio increased to 13.8 GW with higher diversification due to Sunseap and solid generation on the back of strong resource Installed Capacity YoY Net Capacity Factor 1H22 Electricity Production YoY (EBITDA + Equity MW) (%) (TWh) 1H21 12,584 NCF YoY 1H21 15.3 MW 28% +0.2pp 2,461 Added Change
Slide 17: Revenues +45% YoY on the back of higher installed capacity
Revenues +45% YoY on the back of the higher installed capacity in the period, top line performance and better average selling prices EDPR Average Selling Price Revenues (€/MWh) (€m) 1H22 YoY +45% +27% 65.1 1,237 51.4 €104.6 +36% 856 $44.5 +3% R$243.5 -1% 1H21 1H22 1H21 1H22 Average price of EDPR’s p
Slide 18: Net Profit +87% YoY to €265m
Net Profit +87% YoY to €265m, driven by top line partially offset by higher financial costs and non controlling interests 1H22 EBITDA to Net Profit (€m) YoY EBITDA 976 +€321m Solid top line performance (+49% YoY) (1) D&A (336) (€45m) On the back of YoY capacity additions EBIT 640 +€276m Financial (1
Slide 19: Net Debt increased €2.3bn on the back of Sunseap acquisition
Net Debt increased €2.3bn on the back of Sunseap acquisition and increase of Cash Investments in the period 1H22 from RCF to Debt & TEI variance 1H22 Financial Debt Breakdown (€m) (%) ~€0.6bn Sunseap Variable +975 acq. 15% 17% ~€0.6bn OW Other +468 42% ~-€0.1bn (2,700) Sunseap debt ~-€0.4bn Fixed 70
Slide 20: Closing Remarks
Closing Remarks
Slide 21: Key takeaways
Key takeways Solid 1H22 results, driven by +27% YoY increase of avg. selling prices and generation increase of +16% YoY, resulting in EBITDA of €976m (+49% YoY) and Net profit of €265m (+87% YoY) Record capacity under-construction of 3.2 GW, on the back of capacity to be added between 2022 and 2023,
Slide 22: Annex
Annex
Slide 23: Ocean Winds also continues to grow with operating capacity of 1.5 GW in 2022
Ocean Winds also continues to grow with operating capacity of 1.5 GW in 2022 and an increasing portfolio of 12 GW Total portfolio of 12 GW with Ocean Winds very active expanding its footprint MW PPA/Tariff Name Country COD gross secured Windplus 25 2020 SeaMade 487 2021 • 1.5 GW fully operationa
Slide 24: IR Contacts EDPR Online
IR Contacts E-mail: [email protected] Phone: +34 914 238 402 Fax: +34 914 238 429 Serrano Galvache 56, Edificio Olmo, 7th Floor 28033, Madrid - Spain EDPR Online Site: www.edpr.com Link Results & Presentations 24
Slide 25: Slide 25