EDP Renewables SA · EURONEXT:EDPR
EDP Renewables SA — EDP Renováveis — FY2021 Earnings Presentation
29 slides from EDP Renewables SA's earnings presentation, Feb 16, 2022
Slide 1: EDPR 2021 FY Results
EDPR 2021FY RESULTS February 16th, 2021 15:00 CET | 14:00 UK / Lisbon www.edpr.com
Slide 2: Disclaimer
Disclaimer This document has been prepared by EDP Renováveis, S.A. (the "Company") solely for use Forward-looking statements include statements regarding: objectives, goals, strategies, at the presentation to be made on this date and its purpose is merely of informative nature outlook and growth pro
Slide 3: Agenda
Agenda 1 Update on strategy execution 2 2021 Results 3 Closing remarks 4 Annex 3
Slide 4: Update on strategy execution
Update on strategy execution 4
Slide 5: EDPR delivered unprecedented execution in 2021 and laid foundations for 2021-25 plan
EDPR delivered unprecedented execution in 2021 and laid the foundations to deliver its 2021-25 business plan 2.6 GW Record additions of 2.6 GW in 2021, progressively ramping up growth Additions 2021 Growth 8.4 GW 8.4 GW secured, maintaining a selective and disciplined investment approach Secured at
Slide 6: Record additions of 2.6GW, ramping up towards 20GW target
In a challenging context, EDPR reached record additions of 2.6GW, progressively ramping up towards the BP 2021-25 target of 20GW Annual Additions Recent challenges to persist in the short term: EBITDA + Equity GW +20 GW • COVID pandemic additions Slowed down development and origination of short-term
Slide 7: Short term supply chain environment should not impact 20GW growth plan
Current short term supply chain environment should not impact EDPR’s 20GW growth plan until 2025 Secured Capacity Breakdown % Top tier customer with recurrent orders of >1 GW/year both for wind and solar, with major equipment ordered at fixed price Fully contracted or Higher Capex already embedded i
Slide 8: EDPR well protected against inflationary and rising interest rate environment
Moreover, EDPR is well protected against current inflationary and increasing interest rate environment Only 30% of flat revenues… … with debt at fixed rate and with long term maturity Natural hedge to inflation 100% >85% Typically 2-2.5% ~30% annual escalation Potential upside from 2023 onwards as >
Slide 9: EDPR is going global supported by a reinforced management team
EDPR is going global supported by a reinforced and highly experienced management team EDPR Global Wind and Solar capacity EBITDA + Equity GW operating and under construction as of Dec-21 Ocean Europe Winds 5.8 1.5 GW GW North APAC America 7.4 0.6 GW GW Latin America Platform Hubs 1.9 Ocean Winds pro
Slide 10: 8.4 GW secured, 75% of 2021-23 growth target
EDPR has now 8.4 GW secured, with 75% of the 2021-23 growth target already secured at attractive returns… Accelerating growth across all platforms, with +3.0 GW … maintaining a selective and disciplined secured YTD… investment approach Secured Capacity 2021-25 GW Target Actual 75% % 2021-23 IRR/WACC
Slide 11: Pipeline ramp-up and short-term visibility on additional growth
… and continues to ramp-up its pipeline and has significant short- term visibility on additional growth 2021-25 Secured capacity and Pipeline GW Active in the private market with ~60% of the >60 secured capacity achieved through PPAs Centralized ~60% PPAs ~40% Auctions >50 6 GW of PPAs shortlisted a
Slide 12: Ocean Winds continues to grow with total portfolio of 9.3 GW
Ocean Winds also continues to grow with operating capacity increasing to 1.5 GW in 2022 and a total portfolio of 9.3 GW OW Operating Capacity Main updates GW • Moray East finalized construction and is now fully installed • Most recent updates: • Mayflower (US): awarded a 400 MW PPA in 5.9 the Massac
Slide 13: Strong asset rotation execution in 2021 with gains above business plan
Strong asset rotation execution in 2021 with gains significantly above the Business plan EDPR achieved the target AR proceeds rotating less … and starts 2022 with ~€0.85bn of AR MWs, and with significantly higher gains… proceeds already signed AR net GW Gains Gains/MW AR proceeds already signed for
Slide 14: ESG execution on track with BP 2021-25 targets
ESG execution is on track with BP 2021-25 targets, and EDPR continues to be recognized as best in class Circular economy Biodiversity Communities People Suppliers 2025 targets 85% 100% 7€m/year 36% 75% Recovery rate for Facilities with high Investment in supporting local Improve diversity and Purcha
Slide 15: 2021 Results
2021 Results 15
Slide 16: Strong results with Net profit of +€100m YoY
Strong results mostly benefitting from higher capital gains and strong performance in EU & Brazil, with Net profit of +€100m YoY 2021 Key Figures Highlights EBITDA €1.76bn Clean generation of 30.3 TWh, up +6% YoY +6% YoY; +€105m Gains of €523m(1) at EBITDA (+€89m YoY) and €471m at Net profit (+€84m
Slide 17: Portfolio increased to 13.6 GW; generation +6% YoY
EDPR portfolio increased to 13.6 GW, +2.6 GW added YoY Generation +6% YoY due to higher capacity despite low wind resource Installed Capacity YoY Net Capacity Factor 2021 Electricity Production YoY (EBITDA + Equity MW) (%) (TWh) NCF YoY 2020 12,168 2020 28.5 26.5% +1pp MW 2,584 Added ∆ MW 2.5 31%
Slide 18: Revenues +2% YoY on new capacity and higher average price
Revenues +2% YoY on the back of new capacity and higher average price, partially offset by Sell-downs and unfavourable FX EDPR Avg. Selling Price Revenues (€/MWh) (€ million) 2021 YoY (1) +2% +1% +10% 1,731 ex Sell-down 1,758 €81 +0.5% 53.2 53.7 $43.9 -0.1% R$246 +13% 2020 2021 2020 2021 Main driv
Slide 19: Adjusted Core Opex per MW flat YoY and EBITDA of €1,760m
Adjusted Core Opex per MW flat YoY and EBITDA of €1,760m mainly due to higher capital gains YoY and EU & Brazil performance Adj. Core Opex/avg. MW(1) EBITDA (€k) (€ million) +6% flat +9% EBITDA per region(3) 1,760 1,655 adjusted(2) 40.3 40.3 RoE 18% Portugal Brazil 17% 4% €1.76bn Spain 16% North Ame
Slide 20: Net Profit totaled €655m, increasing 18% YoY
Net Profit totaled €655m increasing 18% YoY (+€100m), driven by higher gains and improved financials 2021 EBITDA to Net Profit (€ million) €m YoY EBITDA 1,760 +€105m Top line performance and higher gains YoY D&A (609) -€8m On the back of YoY capacity additions EBIT 1,151 +€97m Financial (249) +€36m
Slide 21: Net Debt and Tax Equity decreased €114m
Net Debt and Tax Equity decreased €114m, with AR proceeds and the capital increase offsetting growth acceleration 2021 from RCF to Debt & TEI variance 2021 Financial Debt Breakdown (€ million) (%) +1,144 Variable 13% 14% Other (2,608) 45% 72% 1,029 (874) Fixed +1,500 Loans 114 87% with EDP 14% 55% (
Slide 22: ESG continues at the core of EDPR
ESG continues at the core of EDPR, with YoY evolution reflecting acceleration of growth Environment Climate Change Circularity (2) Biodiversity CO2 avoided (1) CO2 emitted/avoided Waste Recovery rate Spills & fires (3) Near misses 18 mt 0.2 % 45 kg/GWh 80 % 1 83 -1% vs 12M20 Flat vs 12M20 +20% vs 12
Slide 23: Closing remarks
Closing remarks 23
Slide 24: Key takeaways
Key takeaways In a challenging context, EDPR reached record additions of 2.6GW progressively ramping up towards the BP 2021-25 target of 20GW Current short term supply chain environment should not impact EDPR’s 20GW growth plan until 2025 and we are well protected from inflationary and interest rate
Slide 25: Annex
renewables 25
Slide 26: EDPR 8.4 GW of secured capacity
EDPR 8.4 GW of secured capacity 3.1 2.6 North America Europe GW GW 36% secured 53% secured 1.5 GW 1.6 GW 0.2 GW 6.7 1.4 GW 0.7 GW 0.5 GW post 2025 8.8 20 GW1 Gross 0.4 GW post 2025 Additions 2021-25 1.4 0.7 LatAm 1.9 2.9 APAC GW GW 65% secured 48% secured 1.5 GW 0.4 GW 0.7 MW GW secured (1) EBITDA +
Slide 27: Ocean Winds total portfolio of 9.3 GW
Ocean Winds also continues to grow with operating capacity increasing to 1.5 GW in 2022 and a total portfolio of 9.3 GW Total portfolio of up to 9.3 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 ful
Slide 28: IR Contacts
IR Contacts André Fernandes, Head of IR Pia Domecq Duarte Andrada María Banda Álvaro Goenaga 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
Slide 29: edp
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