Redeia Corporacion Sa · BME:RED
Redeia Corporacion Sa — Red Eléctrica Corporación — FY2011 Earnings Presentation
17 slides from Redeia Corporacion Sa's earnings presentation, Feb 28, 2012
Slide 1: 2011 Results and 2011-2015 Business Plan
2011 Results 2011-2015 Business Plan 28 February 2012
Slide 2: Red Eléctrica's Achievements in 2011
Red Eléctrica’s Achievements in 2011 • Financial and operating results exceeded our targets • Integration of assets acquired in 2010 progressing • Capex in line with strategic objectives • Record in the number of assets put into operation (more than 1,700km circuit) including the mainland to Baleare
Slide 3: Results Summary
Results Summary REVENUES (€m) EBITDA (€m) 2011: 12 % 17 % 21 % CAG R 2 0 0 7 – 2011: 14 % 1,397 1,637 CAGR 2007 – 1,215 1,126 1,200 1,002 1,031 772 846 723 (*) (*) 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 EBIT (€m) NET PROFIT (€m) 17 % 18 % 16 % 23 % 7 – 2011: CAG R 2007 – 2011: 844 C AGR 2
Slide 4: Financial Strength
Financial Strength GROSS TANGIBLE ASSETS (€m) NET DEBT / EBITDA 10,981 11,830 8,661 4.7x 7,782 7,926 3.9x 2007 2008 2009 2010 2011 2010 2011 NET DEBT (€m) OTHER PARAMETERS 4,757 4,693 2010 2011 2,697 2,929 3,122 Leverage (D/D+E) 74 % 72 % Average Cost of Debt 3.2 % 3.7 % EBITDA / Interests 7.7 x 6.8
Slide 5: Key Strategic Initiatives
Key Strategic Initiatives DEVELOPMENT OF INFRASTRUCTURE PLAN AND INTEGRATION OF ASSETS ACQUIRED OPERATING INTEGRATION OF RENEWABLE EXCELLENCE ENERGY OPERATING EFFICIENCY & FINANCIAL STRENGTH 5
Slide 6: 2012 Regulated Revenues
2012 Regulated Revenues REGULATED REVENUES ASSETS UNDER CONSTRUCTION Mn € Mn € 1,376 1,114 Islands 876 869 666 144 477 2006 2007 2008 2009 2010 2011 Mainland ASSETS PUT INTO OPERATION 1,527 km 1,738 Source: Orden IET/3586/2011, 30 December in which access tolls are defined from 1 January 2012 . 2006
Slide 7: Reduced Weight in the Total Cost System
Reduced Weight in the Total Cost System ELECTRIC SYSTEM COSTS TRANSMISSION NETWORK EVOLUTION (km of circuit) 2000 Transmission Others 9% 4.3 % Distribution 22% Generation 40,267 65% 35,568 2011 Others 12% Distribution 33,174 Transmission 17% 4.8 % 2000 2005 2011 Generation 66% Electricity transmissi
Slide 8: Investments for 2011 and Coming years
Investments for 2011 and Coming years Mn € 865 819 800 735 150 Islands 650 Mainland 2009 2010 2011 2012-2015E Singular projects: East Spain – France interconnection (€239m between 2012-2014), Spain - Portugal interconnection (€27m between 2012-2014)(1), Islands interconnections(2) (€334m between 201
Slide 9: Infrastructure Plan
Infrastructure Plan 2008-2016 INFRASTRUCTURE PLAN AVERAGE ANNUAL INVESTMENTS (excl. Islands) INFRASTRUCTURE PLAN (excl. Islands) Mn € Mn € / Año 9,220 8,057 3,551 Pending per 901 year 2012-2016 € 238m New Needs Draft 4,506 Infrastructure 1,090 € 1,401m Plan 2012- 950 140 Postponed 2020 investments P
Slide 10: Renewable Assets Integration
Renewable Assets Integration % WIND GENERATION / TOTAL DEMAND % DEMAND TRANSMISSION LOSSES REDUCTION % Max hourly 59.6 % coverage WIND ENERGY INTEGRATION 16.3 % 1.6 % 1.2 % 1.1 % 8.3 % 2.3 % 2000 2005 2011 2000 2005 2011 • Pre assigned power pending to put in operation: 2,412MW wind; 1,469MW solar t
Slide 11: Integration of Assets Acquired in 2010
Integration of Assets Acquired in 2010 ADAPTATION PLAN 200 Positions Number 100 0 2011 2012 2013 2014 2015 2016 • Implementation finalised in Islands: 13 working centres; 80 employees • 100% of facilities acquired to be remotely controlled • Start of adaptation of facilities to the Company’s quality
Slide 12: Operating Efficiency
Operating Efficiency • 2011 EBITDA Margin improvement, reaching 74% of revenues 2011 • Economies of scale due to a higher volume of assets in 2010 Improvement EBITDA • Purchasing improvement of goods and services Objective Met Margin • Structure costs restrained and progress in the information syste
Slide 13: Refinancing and Debt Maturity
Refinancing and Debt Maturity MAIN REFINANCINGS DEBT MATURITY SCHEDULE Mn € Instrument Eurobond Eurobond Eurobond Eurobond September February February 910 844 Date April 2011 2010 2011 2012 308 52 Size €500m €600m €300m €250m Liquidity Sources* October February (1,895) Maturity April 2020 April 2020
Slide 14: Liquidity Sources and Rating
Liquidity Sources and Rating LIQUIDITY SOURCES S&P AND MOODY’S RATING EVOLUTION Long term bonds EIB 30 % Red Kingdom 13% Eléctrica of Spain Short term lines S&P AA- AAA 14 % 2007 Moody’s A2 Aaa Long term lines Short term 8% sindicated loan 3% S&P A+ A Long term 2012 sindicated loan Moody’s A2 A3 32
Slide 15: 2012-2015 Objectives
2012-2015 Objectives Net Income CAGR ≥ 12% Dividend Growth in line with net income (payout 65%) Investment €800m / year 15
Slide 16: Presentation available at www.ree.es
relacioninversores@ree.es Presentation available in: www.ree.es Shareholders & investors / Presentations 16
Slide 17: Disclaimer
This document has been produced by Red Eléctrica Corporación, S.A. for the sole purpose expressed therein. It should not in any event be construed as an offer of sale, exchange or acquisition, or as an invitation to make any kind of offer, in particular for the purchase of securities issued by Red E
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