EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — 9M22 Earnings Presentation
25 slides from EDP Renewables SA's earnings presentation, Oct 26, 2022
Slide 1: 9M22 Results Presentation
9M22 Results Picture Presentation October 26th, 2022 15:00 CET | 14:00 UK / Lisbon www.edpr.com
Slide 2: Agenda
Agenda 1 Update on Strategy Execution 2 9M22 Results 3 Closing Remarks 4 Annex 2
Slide 3: Update on Strategy Execution
Update on Strategy Execution
Slide 4: Strong operational performance in 9M22 with value enhancing execution of 2021-25 targets
Strong operational performance in 9M22 with value enhancing execution of 2021-25 targets Growth • EBITDA €1,482m (+62% or +€565m) • Installed capacity +10%, renewables generation +14% • Average selling price +29%, supported by European markets • Asset rotation gains €264m (Spain, Poland & Italy) • N
Slide 5: Inflation Reduction Act brings visibility to capture renewables growth in US
Inflation Reduction Act brings visibility to capture the renewables growth in US representing 45% of EDPR’s growth target for 2021-25 Inflation Reduction Acts brings stability to investors by providing tax credits visibility of 10+ years adjusted for inflation Expansion and extension of PTCs and ITC
Slide 6: EDPR well positioned to capture renewables growth in Europe
EDPR is well positioned to capture the renewables growth in Europe being present in 12 markets covering 86% of growth potential EDPR is now present in 12 European markets … ... with growth potential reinforced by REPowerEU developments to accelerate renewables deployment Recent acquisition of Kronos
Slide 7: Out of the 20 GW target for 2021-25 capacity additions, 40% already installed or under construction
Out of the 20 GW target for 2021-25 capacity additions, 40% already installed or under construction, or 55% including all secured capacity Short-term challenges have implied some transfers from EDPR continues to accelerate growth across all platforms 2022 to 23… 10.8 GW of secured capacity breakdown
Slide 8: Ocean Winds continues to grow with a total portfolio of 14.6 GW
Ocean Winds continues to grow with a total portfolio of 14.6 GW GW Gross 1.5 3.6 14.6 9.5 Moray West 882 MW project in Scotland (14.7 MW x 60, 6.6 COD 2024) under construction since July 22 & EFGL (COD 2024) completed its Financial Close on July 22 Total Portfolio Total Installed Under Dev. Under De
Slide 9: EDPR Asset Rotation program keeps delivering value
EDPR Asset Rotation program keeps delivering value, with €3.4bn of AR proceeds secured, >40% of the €8bn target for 2021-25 AR net GW/year AR Gains/year AR Gains/MW GW €bn €m AR Proceeds 1.4 +1.5x +2x 0.5 0.5 1.0 ~0.3 ~0.2 In line with BP Guidance €3.4bn BP Executed BP Executed BP Executed Guidance
Slide 10: Asset Rotation transactions signed in 3Q22 continue to show value creation
Asset Rotation transactions signed in 3Q22 continue to show value creation AR deal of 172 MW of wind capacity in Italy AR deal of 260 MW of wind capacity in Brazil (signing Jul-22)(1) (signing Oct-22)(2) €2.4m €1.3m EV/MW EV/MW Below avg. multiple given the Higher energy prices as a project’s very c
Slide 11: Different price stabilization regulations among Member States
Despite EU’s attempt to create a transversal regulation, we are seeing different price stabilization regulations among Member States European Governments are aiming to provide stability for consumers mainly through higher taxation for companies Revenue cap at €180/MWh, with Member States having the
Slide 12: Average selling price benefitting from positive market dynamics
Average selling price benefitting from positive market dynamics with gradual hedges roll over for 23-25 considering regulation uncertainty Hedges roll over and hedging strategy optimization 9M22 market dynamics to be maintained until end of year increase exposure to merchant prices over 2023-25 EDPR
Slide 13: EDPR committed to being a top renewables player, with 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 and and the implementation of best ESG standards… initiatives aligned with its strategy
Slide 14: 9M22 Results
9M22 Results
Slide 15: Solid operational performance on higher installed capacity
EDPR continues to deliver solid operational performance on the back of higher installed capacity increased to 14.3 GW and stronger resources Installed Capacity YoY Net Capacity Factor 9M22 Electricity Production YoY (EBITDA + Equity MW) (%) (TWh) NCF YoY 9M21 13,049 9M21 21.5 MW 25% +0.8pp 2,623 Add
Slide 16: EBITDA +62% YoY
EBITDA +62% YoY on the back of outstanding top line driven by higher average prices reinforced by capital gains in the period EBITDA (€m) YoY growth, % 9M21 9M22 YoY Installed Capacity(1) GW 13.0 14.3 +10% +62% 1,482 Prod. deviation vs. exp. LT Gross -5% 0% +5 pp Capacity Factor % 917 Europe(2) 975
Slide 17: Net Debt at €5.6bn well protected against interest rate increase
Net Debt at €5.6bn well protected against interest rate increase with 65% at fixed rate and pricing risk mitigated by pre-hedging strategy Nominal Financial Debt Breakdown as of Sep-22 (€m) Closing in 9M22 5-year pre-hedging of fixed interest 13% Other Variable rate for €1.5bn debt maturing post 202
Slide 18: Net Debt evolution
Net Debt evolution driven by €3.5bn Expansion Investments in renewables additions, €1.3bn of AR Proceeds and €0.8bn Forex & Other Net Debt Evolution from Dec-21 to Sep-22 (€bn) ~€2.3bn Capex ~€0.7bn Sunseap(1) ~€0.6bn OW 1.3 0.8 ~€0.25bn Solar Portfolio Vietnam 0.1 3.5 0.4 5.6 2.9 Net Debt Operating
Slide 19: Net Profit +181% YoY to €416m
Net Profit +181% YoY to €416m, driven by top line partially offset by higher financial costs and non controlling interests 9M22 EBITDA to Net Profit (€m) YoY EBITDA 1,482 +€565m Solid top line performance (+62% YoY) (1) D&A (520) (€75m) On the back of YoY capacity additions EBIT 963 +€490m Financial
Slide 20: Closing Remarks
Closing Remarks
Slide 21: Key Takeaways
Key Takeways Strong 9M22 results, driven by generation increase of +14% YoY and increase of avg. selling price +29% YoY resulting in EBITDA of €1,482m (+62% YoY) and Net profit of €416m (+181% YoY) Out of the 20 GW of 2021-25 capacity additions, >40% already installed or under construction and 10.8
Slide 22: Annex
Annex
Slide 23: 9 asset rotation deals in 6 markets in 2021-22
9 asset rotation deals in 6 markets in 2021-22 reaching >40% of target proceeds for 2021-25 AR proceeds 2021-2022 €bn 2022 2021 Closed Signed ~3.4 ~0.25 (1) ~0.35 0.4 0.3 0.3 0.5 0.4 0.2 0.5 AR Proceeds 405 MW 200 MWac 302 MW 221 MW 149 MW 181 MW 172 MW 260 MW 200 MWac MW Gross 80% 80% 100% 100% 100
Slide 24: IR Contacts
IR Contacts E-mail: [email protected] Phone: +34 900 830 004 Serrano Galvache 56, Edificio Olmo, 7th Floor 28033, Madrid - Spain EDPR Online Site: www.edpr.com Link Results & Presentations 24
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