EDP Renováveis S A : EDPR 1H21 Results Report

Results Report

1H21

July 28th, 2021

Contents

Index

1H21 Highlights	3
Asset Base & Investment Activity	4
Operating Performance	5
Financial Performance	6
Cash-Flow	7
Net Debt and Institutional Partnership Liability	8
Business Platforms	9
Europe	10
North America (USD)	11
Latin America (BRL)	12
Balance Sheet & Income Statements	13
EDPR: Balance Sheet	14
EDPR: Income Statement by Region	15
EDPR Europe: Income Statement by Country	16
ESG Performance	17
ESG Ratings & Sustainable Development Goals	18
Environmental Performance	19
Social Performance	20
Governance Performance	21
Annex	22
Remuneration Frameworks	23
Share Performance & Shareholder Structure	24

Conference Call & Webcast Details

Date: Wednesday, 28thof July, 2021, 15:00 CET | 14:00 UK/Lisbon

Webcast: www.edpr.com

Phonedial-Innumber: UK: [phone] | US: [phone]

Access Password: EDPR

Investor Relations

André Fernandes, Head of IR

Pia Domecq

Celia de Cominges

Duarte Andrada

Email:[e-mail]

Site:www.edpr.com

Telefone:[phone] | [phone]

EDP Renováveis, S.A.

Head office: Plaza del Fresno, 2 33007 Oviedo, Spain

LEI: 529900MUFAH07Q1TAX06

C.I.F. n. º A-74219304

Important Information

• InJune-21, EDPR concluded an Asset Rotation deal regarding the 68% stake of a 405 MW wind portfolio in the US.

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1H21 Highlights

Operational Results

EDPR had, by Jun-21, a portfolio of operating assets of 12.6 GW, with 9 years of avg. age, of which 11.7 GW fully consolidated and 841 MW equity consolidated (Spain, Portugal, US and Offshore). Since Dec‐20, EDPR added a total of 691 MW of wind and solar capacity out of which 648 MW fully consolidated, specifically 83 MW in Europe, 537 MW in North America, and 28 MW in APAC, namely in Vietnam. Equity consolidated increased by 43 MW on the back of the Seamade offshore project in Belgium, that entered in operation during the first quarter of the year.

Pursuing its Asset rotation strategy, EDPR successfully concluded the sale of a 68% equity stake in a 405 MW operational wind portfolio in the US (275 MW net). All in all, EDPR YoY consolidated portfolio net variation was +415 MW.

As of Jun‐21, EDPR had 2.9 GW of new capacity under construction, of which 2,195 MW of wind onshore, 421 MW of solar and 269 MW of equity participations in offshore projects.

In the period, EDPR produced 15.3 TWh of clean electricity (+5% YoY), avoiding 10mt of CO2emissions. The YoY evolution benefits from the capacity additions over the last 12 months along with a stable wind resource.

The average selling price declined -7% YoY driven by Spanish portfolio mix YoY average post Sell-down transactions, US hedging on the back of the one-off weather event in the 1Q and unfavourable forex translation.

Revenues to Net Profit

Revenues decreased to €856m (-6% YoY; -€57m), where the impact from Sell-down(-€69m YoY), lower average selling price (-€22m YoY; ex-Sell-down), mostly driven by Spain and US, unfavourable forex translation and others (-€38m YoY), were not offset by additional capacity MW (+€61m YoY) and wind resource (+€11m YoY)

Other operating income amounted to €141m (-€53m YoY). Operating Costs (Opex) totalled €331m (+7% YoY) given upfront costs to cope with expanded growth over the coming years. In comparable terms, Core Opex per avg. MW adjusted by Sell-down, offshore costs, service fees, one-offs and forex, was -3% YoY, given O&M strategy and cost control.

EBITDA summed €654m (-13% YoY adjusted by forex) and EBIT €364m (-€137m YoY) given top line performance mainly affected by the US weather one-off event in the 1Q, lower capital gains YoY and forex. Net Financial Expenses decreased to €111m (-€52m vs 1H20) with YoY comparison affected by lower avg. cost of debt in the period (-0.6pp YoY).

At the bottom line, Net Profit summed €142m (-44% YoY) partially offset by lower financials and D&A. Non-controlling interests in the period totalled €64m, decreasing by €12m YoY as a result of top line performance.

Cash Flow & Net Debt

As of Jun-21, Net Debt totalled €3,563m (+€120m vs Dec-20) reflecting the investment strategy offset by the Capital increase received in April.

Institutional Partnership Liabilities summed €858m (-€285m vs Dec-20), reflecting benefits captured by the projects and the deconsolidation of asset sold in the period.

Operational Results	1H21	1H20	∆ YoY
EBITDA MW		10,889		+855
11,743
Other equity consolidated	841	550		+291
EBITDA MW + Equity Consolidated	12,584	11,439		+1,145
EBITDA MW metrics		32%		(0.5pp)
Load Factor (%)	31%
Output (GWh)	15,338	14,664		+5%
Avg. Electricity Price (€/MWh)	51.4	55.0		(7%)
Financial Results (€m)	1H21	1H20	∆ YoY
Revenues		913		(6%)
856
Other operating income/(cost)	(190)	(115)		+65%
Share of profit of associates	(12)	(5)		-
EBITDA	654	793		(18%)
EBITDA/Revenues	76%	87%		(10pp)
EBIT	364	501		(27%)
Net Financial Expenses	(111)	(164)		(32%)
Non-controlling interests	(64)	(76)		(16%)
Net Profit (Equity holders of EDPR)	142			(44%)
255
Cash-flow and Net debt (€m)	1H21	1H20	∆ YoY
FFO (Funds From Operations)		685		(79)
605
Operating Cash-Flow	293	526		(233)
Capex & Financial Investments	(1,179)	(675)		(504)
Changes in PP&E working capital	(644)	(77)		(567)
Government grants	-	-		-
Net Operating Cash-Flow	(1,530)	(225)		(1,304)
Proceeds from Asset rotation	239	122		+117
Proceeds from institutional partnerships	(0)	132		(133)
Payments to institutional partnerships	(37)	(18)		(19)
Net interest costs (post capitalisation)	(41)	(86)		+45
Dividends net & other distributions	1,350	(142)		+1,491
Forex & others	(102)	(8)		(94)
Decrease / (Increase) in Net Debt	(120)	(224)		+104
Net Debt & Tax Equity (€m)	Jun-21	Dec-20	∆ %
Net Debt		3,443		+3%
3,563
Institutional Partnership Liabilities	858	1,143		(25%)
Rents due from lease contracts (IFRS 16)	716	689		+4%

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Asset Base & Investment Activity

Installed Capacity	Jun-21	∆ YoY		2021		Under
(MW)	Additions	AR	∆ MW	Constr.
EBITDA MW
Spain	2,137	+163	-	-	-	101
Portugal	1,238	+74	+10	-	+10	125
France & Belgium	165	+99	+30	-	+30	26
Poland	476	+58	-	-	-	371
Romania	521	-	-	-	-	-
Italy	314	+44	+44	-	+44	229
Greece	-	-	-	-	-	59
Europe	4,852	+437	+83	-	+83	911
United States	5,898	-16	+475	(405)	+70	671
Canada	130	+100	+62	-	+62	-
Mexico	400	+200	-	-	-	96
North America	6,428	+284	+537	(405)	+132	767
Brazil	436	+105	-	-	-	939
Latin America	436	+105	-	-	-	939
Vietnam	28	+28	+28	-	+28	-
APAC	28	+28	+28	-	+28	-
Total EBITDA MW	11,743	+855	+648	(405)	+243	2,616
Equity Consolidated (MW)
Spain	167	+15	-	-	-	-
Portugal	20	+20	-	-	-	-
United States	601	+202	-	+130	+130	-
Wind Onshore & Solar	787	+237	-	+130	+130	-
Wind Offshore	53	+53	+43	-	+43	269
Total Eq. Cons. MW	841	+291	+43	+130	+172	269
Total EBITDA + Eq. MW	12,584	+1,145	+691	(275)	+415	2,885
Investments (€m)			1H21	1H20	∆ %	∆ €
Europe					+105%	+177
		346	169
North America			483	377	+28%	+106
Brazil			135	41	-	+95
Other			3	2	+62%	+1
Total Capex			968	589	+64%	+379
Financial investments			211	86	-	+125
Government grant			-	-	-	-
Sell-down strategy & divestments			-496	-122	-	(374)
Net Investments			683	553		+130
		-

Assets' Average Age & Useful Life by Country

EBITDA MW

Spain13

Portugal12

Fran. & Belg. 2

Poland8

Romania9

Italy 4

US8

Canada 2

Mexico 2

Brazil 5

Vietnam 0.1

EDPR9

0

5

10

15

20

25

30

35

Property, Plant & Equipment - PP&E (€m)	1H21	1H20	∆ €
PP&E (net)
13,747	13,256	+492
(-)	PP&E assets under construction	2,952	1,833	+1,119
(=)	PP&E existing assets (net)	10,796	11,423	(627)
(+)	Accumulated Depreciation	5,995	5,782	+213
(-)	Government Grants	509	528	(19)
(=) Invested capital on existing assets	16,282	16,677	(395)

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Operating Performance

Load Factor	1H21	1H20	∆ YoY
Europe			+1pp
28%	26%
North America	34%	36%	(2pp)
Brazil	34%	27%	+8pp
Total				31%	32%	(0.5pp)
				1H21	1H20	∆ YoY
Electricity Generation (GWh)
Europe			+14%
5,766	5,063
North America	9,079	9,213	(1%)
Brazil	494	388	+27%
Total				15,338	14,664	+5%
Electricity Sales and Other (€m)	1H21	1H20	∆ YoY
Europe			+7%
453	425
North America	298	371	(20%)
Brazil	17	16	+5%
Total				769	808	(5%)
Income from Institutional Partnerships (€m)	1H21	1H20	∆ YoY
Total			(17%)
87	105
Revenues	1H21	1H20	∆ YoY
Revenues (€m)			(6%)
856	913
Revenues per avg. MW in operation (€k)	74	86	(14%)

Note: Operational Performance considers only capacity consolidated at EBITDA level.

Renewables Index (vs expected LT avg. GCF)		1H21	1H20	∆ YoY
Europe				97%	94%	+3pp
North America				94%	95%	(2pp)
Brazil				105%	83%	+22pp
EDPR				95%	94%	+1pp
Selling Prices (per MWh)			1H21	1H20	∆ YoY
Europe				€77.2	€82.2	(6%)
North America				$43.1	$44.6	(3%)
Brazil				R$246.4	R$243.5	+1%
Average Selling Price			€51.4	€55.0	(7%)
Electricity Output		Average Selling Price €/MW	Revenues
GWh		€/MWh		€m
+5%			(7%)		(6%)
14,664	15,338	€55.0	€51.4	913		856
1H20	1H21	1H20	1H21	1H20	1H21

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