Redeia Corporacion Sa · BME:RED
Redeia Corporacion Sa — Red Eléctrica (Redeia) — H1 2019 Earnings Presentation
18 slides from Redeia Corporacion Sa's earnings presentation, July 2019
Slide 1: Results Presentation First Half 2019
RESULTS PRESENTATION FIRST HALF 2019 July 2019
Slide 2: Contents
Contents 1. Red Electrica in the Energy Transition. 2. Normative progress and CNMC Circular proposal. 3. Results for H1 2019. 4. Our commitment to the future. 2022 Horizon. Results for H1 2019. July 2019 2
Slide 3: Red Eléctrica in the Energy Transition
Red Electrica in the Energy Transition EU Clean Energy Package. Plan Nacional de Energía y Clima (PNIEC) 2021-2030 2030 Targets Targets • 21 % reduction in greenhouse gas (GHG) emissions compared to 1990. • 42 % of the final energy consumption for the EU as a whole produced from renewable sources. •
Slide 4: Red Eléctrica in the Energy Transition: key indicators
Red Electrica in the Energy Transition Quality Standards Integration of renewables Request for access 98.24 % 38.4 % 28.5 GW Transmission grid availability Generation using renewable sources Wind and photovoltaic generation in service 23.26 MWh 48,973 GWh Energy not supplied CO2-free generation 56.1
Slide 5: Contents
Contents 1. Red Electrica in the Energy Transition. 2. Normative progress and CNMC Circular proposal. 3. Results for H1 2019. 4. Our commitment to the future. 2022 Horizon. Results for H1 2019. July 2019 5
Slide 6: Normative progress
Normative progress • Draft version of the ‘Plan Nacional Integrado de Energía y Clima’ (PNIEC) for 2021-2030 sent to the European Commission. Roadmap for the Energy Transition. • Launching on 1 March of the new Infrastructure planning for the electrical transmission grid for 2021-2026. • Independent
Slide 7: CNMC Circular Proposal: regulatory calendar
CNMC Circular Proposal Calendar for regulatory development of the methodology for electricity transmission activities and operation of the system 5 July 2019 • Publication by the CNMC of draft Circulars to establish the calculation methodology for: (i) compensation for electricity transmission activ
Slide 8: CNMC Circular Proposal: transmission compensation
CNMC Circular Proposal Proposal on compensation for electricity transmission activities • Regulatory period: 2020-2025 (6 years). • Investments compensation based on net asset value. • Model based on benchmark unitary values for investment and for operations and maintenance. • Financial rate of retu
Slide 9: CNMC Circular Proposal: system operator compensation
CNMC Circular Proposal Proposed compensation for electricity system operator • This is the first time a methodology is being established for compensation of the electricity system operator. • It incorporates a system for recognising costs plus an additional margin, compensation for investments based
Slide 10: CNMC Circular Proposal: main allegations
CNMC Circular Proposal Main allegations to proposed Circulars Incentives for extension Compensation for transmission grid’s O&M of transmission grid useful life's • It should generate a sufficient compensation to • It does not include a real incentive to maintain facilities ensure current levels of
Slide 11: Contents
Contents 1. Red Electrica in the Energy Transition. 2. Normative progress and CNMC Circular proposal. 3. Results for H1 2019. 4. Our commitment to the future. 2022 Horizon. Results for H1 2019. July 2019 11
Slide 12: Results for H1 2019. Significant Events
Results for H1 2019. Significant Events Financial Results Net Profit Investments Telecommunications Group Investments €166.1m. Transmission grid Positioning as a global €362m, 1.5% higher than investments €133.1m in Spain. telecommunications operator: first-half profits in 2018, in Agreement on acqu
Slide 13: Results for H1 2019. Financial Results
Results for H1 2019. Financial Results Key Economic Figures €993.1m €779.4m €362.2m Revenues EBITDA Net Profit +0.3% +0.3% +1.5% €4.485.9m €166.1m €133.1m Net Financial Total Trans. Debt -4.2% Investment -9.2% Grid Inv. -13.6% 2.30 % 2.9 x 27.2 % Cost of Debt Cost of Debt FFO/Debt 2.44% in H1 2018 2
Slide 14: Results for H1 2019: Corporate Debt
Results for H1 2019: Corporate Debt Balance Sheet Strength Maturities (€m) • Average debt life: 5.0 years. 1,674 • Liquidity sources €3,169 M€. 867 842 701 • Rating: ‘A-’ Standard & Poor’s and ‘A-’ Fitch, outlook 328 184 451 293 stable. • Financing sustainable. €800m syndicated loan and 2019 2020 20
Slide 15: Results for H1 2019: Investments
Results for H1 2019: Investments TSO in Spain Transmission in Latin Telecommunications Storage America Business Red Eléctrica Chile and Peru 44,073 km of lines 1,686 km in Peru 33,000 km fibre-optic 5,796 bays 1,729 km in Chile grid €139.8m in investments Acquisition of Cajamarca Acquisition agreeme
Slide 16: Contents
Contents 1. Red Electrica in the Energy Transition. 2. Normative progress and CNMC Circular proposal. 3. Results for H1 2019. 4. Our commitment to the future. 2022 Horizon. Results for H1 2019. July 2019 16
Slide 17: Our commitment to the future. 2022 Horizon
Our commitment to the future. 2022 Horizon Creating value for our stakeholders ✔ Strong investments. More than half in the Energy Transition in Spain. ✔ Commitment to efficiency. ✔ Financial discipline. ✔ Sustainable net profits. ✔ Stable dividend policy. Results for H1 2019. July 2019 17
Slide 18: Thank you for your attention.
Thank you for your attention. www.ree.es
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