EDP Renewables SA · EURONEXT:EDPR

EDP Renewables SA — EDP Renováveis — 9M20 Earnings Presentation

24 slides from EDP Renewables SA's earnings presentation, Oct 29, 2020

  1. Slide 1: 9M20 Results

    9M20 RESULTS October 29th, 2020 15:00 CET | 14:00 UK / Lisbon www.edpr.com xx– xx Elkhorn Valley (US)

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation has been prepared by EDP Renováveis, S.A. (the "Company“; LEI 529900MUFAH07Q1TAX06) solely for use at the presentation to be made on October 29th 2020. By attending the meeting where this presentation is made, or by reading the presentation slides, you acknowledge and ag

  3. Slide 3: Index

    INDEX A HIGHLIGHTS OF THE PERIOD B 9M20 RESULTS C BUSINESS PLAN UPDATE D CONCLUSIONS E ANNEX -3-

  4. Slide 4: Highlights of the Period

    HIGHLIGHTS OF THE PERIOD

  5. Slide 5: EDPR 9M20 YoY comparison affected by portfolio scope given Sell-down strategy

    EDPR 9M20 YoY comparison affected by portfolio scope given execution of Sell-down strategy along with low wind resource Quality Selective and Self-funding assets profitable growth business 29% load factor (vs. 30% in 9M19) 6.1 GW secured + 0.5 GW Viesgo acquisition €2.3bn (ex-offshore) of Sell-down

  6. Slide 6: 9M20 Results

    9M20 RESULTS

  7. Slide 7: EDPR total portfolio amounts to 11.5 GW after Sell-down transactions

    EDPR total portfolio amount to 11.5 GW after Sell-down transactions Evolution of Installed Capacity (EBITDA MW + Equity Consolidated) MW Under Built YoY Construction 11,711 11,574 11,548 +712 MW +1,393 MW1 10,836 +875 (137) (26) +126 MW +499 MW • BR: 137 MW (100% of Babilonia) 57% 41% +10 MW +269 MW

  8. Slide 8: In 9M20 EDPR achieved a 29% load factor reflecting 91% of P50

    In the 9M20 EDPR achieved a 29% load factor reflecting 91% of P50 (long term average for 12M)… Load Factor and Technical Availability(1) EDPR Quarterly Load Factor vs. Long-term average (%) 2019 2020 9M20 ∆ YoY 9M20 vs. LT avg. 25% -2pp 94% -1% -2% 32% -1pp 90% -7% -6% -7% 36% -4pp 90% -9% -10% 29%

  9. Slide 9: Electricity output lower 7% YoY disrupted by assets Sold-down

    Electricity output lower 7% YoY disrupted by assets Sold-down; +1% excluding Sell-down impact Electricity Production TWh (TWh) % YoY Mainly driven by the deconsolidation +1% of 997 MW in Jul‐19 from a ex-Sell-down -16% Sell‐down transaction and by lower wind resource not offset by new -7% +5% capac

  10. Slide 10: Avg. price at €55/MWh decreasing 2% YoY, driven by strong hedging coverage

    Avg. price at €55/MWh decreasing 2% YoY, or flat YoY if excluded Sell-down impact, driven by strong hedging coverage EDPR Price Evolution 9M20 % YoY(1) (€/MWh) SP price recovery +8% (from regulatory €81.6 +2% & financial coverage +€42m YoY); -2% PT -4% (from new additions) & RoE -2% €56.1 €54.7 fla

  11. Slide 11: Revenues decreased 8% YoY (+1% excluding Sell-down)

    Revenues decreased 8% YoY (+1% excluding Sell-down) where lower MWs (-5%) and wind resource (-4%) were not offset by higher price (+2%) Revenues Main drivers for Revenues performance (€ million) • MW & NCF; -9% Volume: -9% YoY; -€73m • Prices; +2% -8% from wind resource (-4%; -€57m), 1,364 MW additi

  12. Slide 12: Core Opex per avg. MW +3% adj. YoY

    Core Opex per avg. MW +3% adj. YoY, to cope with expanded growth, namely the 2.2 GW under construction Opex (excludes Other Operating Income) (€ million) Core Opex/Avg. MW (€k) (Supplies & Services and Personnel Costs) +4% +6% reported Levies & 29.3 +3%(2) 31.1 adjusted Non-recurrent Core Opex(1) +3

  13. Slide 13: Delivering EBITDA of €1,074m (-12% YoY)

    Delivering EBITDA of €1,074m (-12% YoY); impacted by Sell-down assets deconsolidation along with lower capital gains YTD EBITDA YoY EBITDA per Region(3) (€ million) (%) • -€93m Sell-down(1) • -€26m capital gains -12% RoE Brazil 13% 2% 1,221 (2) Portugal 1,074 14% Spain €1,074m 19% North America 9M19

  14. Slide 14: Net Profit totaled €319m, decreasing 7% YoY

    Net Profit totaled €319m; decreasing 7% YoY driven by low wind resource and Sell-down YoY effects 9M20 EBITDA to Net Profit (€ million) €m YoY (1) 1,074 YoY comparison driven by deconsolidation of EBITDA -€147m assets, YoY gains and low wind 430 Assets deconsolidation had an impact of -€17m in D&A

  15. Slide 15: Balance sheet with Net debt and Tax Equity increasing due to ongoing growth

    Balance sheet with Net debt and Tax Equity increasing due to ongoing growth by €378m... 9M20 from RCF to Debt and TEI variance (€ million) 9M20 Debt and TEI Breakdown (%) +5% YoY €250m ND + TEI deconsolidation from announced Sell-down 5% 670 (Assets held for sale) TEI Other (1,254) €1.2bn & TEI 73%

  16. Slide 16: Business Plan Update

    BUSINESS PLAN UPDATE

  17. Slide 17: EDPR continues excellent execution on BP19-22 with 6.1 GW secured

    EDPR continue its excellent execution on the BP19-22 with 6.1 GW of the plan already secured BP 19-22 CAPACITY SECURED AS % OF c.7 GW TARGET FOR 2019-22 86% EXECUTION: 0.7 GW ALREADY SECURED IN 2020 74% Country MW Technology CoD Contract 66 2022 PPA 109 2021 LT CfD 50% 45% 200 2020 PPA 40% 59 & 2022

  18. Slide 18: Viesgo acquisition brings secured projects backlog to 6.5 GW

    Despite 2020 timing impacts due to Covid-19, with the Viesgo acquisition EDPR has already 6.5 GW of secured projects backlog as of Sep-20 SECURED CAPACITY STATUS (CoD REFORECAST); GW ~0.5 GW delay into 2021 due to Covid-19 2.1 2.1 86% of the BP 19-22 Secured 1.6 0.5 1.1 GW +0.5 GW in 2020 from 0.9 p

  19. Slide 19: Conclusions

    CONCLUSIONS

  20. Slide 20: Conclusions

    Conclusions 9M20 operating performance impacted by low wind resource (91% of P50), while strong hedging coverage offset market prices decline EBITDA of €1,074m (-12% YoY) and Net Profit of €319m (vs €342m in 9M19) as a consequence of low wind resource, assets deconsolidation and lower Sell-down gain

  21. Slide 21: Annex

    ANNEX

  22. Slide 22: EDPR operates a solid business model based on sustainable and clean energy

    EDPR operates a solid business model based on sustainable and clean energy, on which risks to its Business Plan are expected to be limited at this stage Operational Selective Self-funding excellence growth business 11.5 GW Operational portfolio BP 2019-22 target 86% secured Growth supported by reven

  23. Slide 23: Contacts

    CONTACTS IR Contacts Rui Antunes, Head of IR, P&C and Sustainability Pia Domecq Duarte Andrada 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: www.edpr.com

  24. Slide 24: 9M20 | Oct 29th 2020

    Elkhorn Valley (US) 9M20 | Oct 29th 2020 www.edpr.com

EDP Renováveis — 9M20 Earnings Presentation on 6ix