Redeia Corporacion Sa · BME:RED
Redeia Corporacion Sa — Redeia — Q1 2023 Earnings Presentation
20 slides from Redeia Corporacion Sa's earnings presentation, April 2023
Slide 1: Q1 2023 Results
Q1 2023 Results April 2023 redeia Valuing the essentials
Slide 2: Agenda
1. Q1 2023 Highlights & Results. 2. 2023 Outlook. 3. Progress on the 2021-2025 Strategic Plan. Q123 Results. April 2023 2
Slide 3: Q1 2023 Highlights & Results
redeia I) Q1 2023 Highlights & Results
Slide 4: Q1 2023 highlights
Agreement between CNMC and CRE on the distribution of the financing of the Spain-France interconnection through the Bay of Biscay. Investments increase by 33% compared to Q1’22. Progress in civil works at the Chira Soria plant. Issuance of €500 million green hybrid bond with annual fixed coupo
Slide 5: Key figures: revenues, EBITDA, net profit, investments, net debt
€537 M €402 M €180 M Revenues* EBITDA Net profit €512 M in Q122 €395 M in Q122 €182 M in Q122 €155 M €4.436 M Investments Net Debt €121 M in Q122 €4.634 M Dec 22 €363 M €0.2727per share FFO Distribution of interim dividend €348 M in Q122 9 January 2023 * Including revenues and share of profits of co
Slide 6: P&L and EBITDA by business
P&L (€ M) Q123 Q122 Δ M€ Δ% EBITDA (€ M) Q123 Q122 Δ €M Δ% Revenues* 537.2 512.4 24.8 4.8 TSO 304.4 306.3 -1.9 -0.6 International 31.8 21.9 9.9 45.0 Other income and OWC** 28.6 15.5 13.2 85.3 Satellite 31.1 34.7 -3.6 -10.5 Operating expenses -164.0 -132.5 -31.6 23.8 Fibre optics 28.2 28.1 0.2 0.6 Ne
Slide 7: Revenues evolution by business
€M Regulated business in Spain (+0.3%): positive contribution from the System Operator, following the review of parameters for the period 2023-25 (+ €1.5 M), and increased projects for third parties, partially offset by the fall in transmission activity 12 2 537 after final tariff orders for 2016
Slide 8: Operating costs evolution
€M +€32 M +23.8 % 5 164 13 133 13 Comparable Non-comparable + €27 M +3.7 % 1Q22 Operating costs Chira Soria costs Change in perimiter Rest of recurring expenses 1Q23 Operating costs Chira-Soria construction costs of €13.3 M not contemplated in Q122. At the same time, income of €15 M was recorded u
Slide 9: EBITDA evolution
€M +1.6 % 10 2 402 0,2 395 4 2 1Q22 EBITDA TSO International Satellite Fibre optic Other 1Q23 EBITDA Decline in TSO activity primarily due to higher maintenance costs. Significant contribution from international business, mainly due to assets commissioned and changes in the accounting perimeter.
Slide 10: Net profit evolution
€M -0.9% 6 0 1 182 0.4 180 7 1Q22 Net profit EBITDA D&A Net financial results Corporate tax Non-controlling interests 1Q23 Net profit Amortizations in line with the previous year. Financial result shows a higher average cost of debt (+2.08%), offset by lower average gross debt and higher financi
Slide 11: Investments
€M +28 % Development of the transmission grid amounting to €95.1 M. Storage in the Canary Islands €15.0 M. 155 121 Completion of Tesur 4 in Peru, commissioned in January. +33 % 114 Progress in the expansion of Centinela substation in Redenor 2 (Chile). 86 1Q22 1T22 1Q23 1T23 Mainly the lau
Slide 12: Cash flow and net debt
€M Operating Cash Flow € 72M 3.0 x 500 ND/EBITDA 4,634 3.7 x in Q122 363 147 4,436 291 155 72 22.7 % FFO/ND* 21% in Q122 Dec-2022 FFO Change in Investments Dividends Hybrid Bond Other 1Q23 working capital ‘A-’ Stable outlook Positive evolution of FFO, growing by 4.3%. Fitch and S&P The variation
Slide 13: Debt structure
3% 3% €M 46% 6% Eurobonds 2,500 2,048 ESG financing* 2,000 Non-current loans 1,500 1,203 42 % in Dec 2022 Long-term credits 1,090 28% 60% USPP 1,000 551 576 629 500 Other 0 4.8 years Average life 11% 5.5 years in Q122 EUR 89% 11% Currency 2% 2.08 % 32% Cost of debt 48% €3,432 M Fixed rate Loans 1.46
Slide 14: 2023 Outlook
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Slide 15: 2023 outlook by business
TSO Greater commissioning of assets and update in the System Operator remuneration. 877 Progress of the Chira-Soria project. 830 > 80 % >700 International 532 Contribution of new lines acquired in Brazil 439 414 421 and assets commissioned. 392 413 405 426 Satellite Start of Amazonas Nexus c
Slide 16: Progress on the 2021-2025 Strategic Plan
redeia A Progress on the 2021-2025 : Strategic Plan
Slide 17: Investment plan 2021-25
€M ~4.800 4.400 26% 19% 41% 54% +10 % TSO ~ 3.700 20% 40% International 3.350 Telecomunications Others Initial Plan 2021-25 New Target 2021-25 * International Business initial capex target to 2025: € 224 M. Results for 2022. February 2023 17
Slide 18: Financial targets and dividend
2022 2023e 2025e Actual Estimate Targets EBITDA Margin 73.7 % > 72 % > 70 % FFO / Net Debt 21.3 % (1) > 21 % (2) > 15 % Net Debt/ EBITDA 3.1x ~ 3.6x (2) <5x (1) If FFO would not consider corporate income tax payments on account related to the capital gain from the sale of 49% of Reintel (€154 millio
Slide 19: Valuing the essentials
redeia Valuing the essentials red eléctrica reintel hispasat redinter elewit
Slide 20: Disclaimer
This document has been produced by Red Eléctrica Corporación. S.A. for the sole purpose expressed herein. 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 El