Redeia Corporacion Sa · BME:RED
Redeia Corporacion Sa — Red Eléctrica Corporación — FY2017 Earnings Presentation
22 slides from Redeia Corporacion Sa's earnings presentation, Feb 19, 2018
Slide 1: 2017 Results. Progress of the Strategic Plan 2014-2019
2017 Results Progress of the Strategic Plan 2014-2019 19 February 2018 2017 Results and progress of the Strategic Plan 2014-2019 19 February 2018
Slide 2: Contents
Contents 2017 Results 3 Progress of the Strategic Plan 2014-2019 9 Energy transition. 2030 Horizon 17 2017 Results and progress of the Strategic Plan 2014-2019 19 February 2018 2
Slide 3: 2017 Results
2017 Results
Slide 4: Significant events 2017
Significant events 2017 Financial results Net profit €670M, a 5.2% rise year-on-year EBITDA amounted to €1,519M, a 2.3% rise year-on-year Dividend proposed in the AGM of €0.9188 per share, a 7% increase on last year. Net financial debt was €4,792M Investments Investments in the transmission network
Slide 5: Significant events 2017: Sustainability and good governance
Significant events 2017 Sustainability and good governance Golden Class award in the RobecoSAM Sustainability Yearbook Leader in the Electric Utilities sector in the Dow Jones Sustainability Index, and leading also the super sector Utilities, which encompasses the electricity, gas and water sectors
Slide 6: Highlights
Highlights €M 2016 2017 2016-17 Revenue 1,932 1,941 0.5% EBITDA 1,486 1,519 2.3% Profit before tax 851 890 4.6% Profit for the period 637 670 5.2% Total investment 643(*) 510 (*) The 2016 investment figure includes the disbursement for 50% of the capital of the Chilean Company TEN Profit for the yea
Slide 7: Financial structure: Performance of net financial debt
Financial structure Performance of net financial debt €M - 157 4,949 463 4,792 510 1.188 Average debt maturity 58 5.3 years 2.78 % debt cost 2017 vs. 2.94 % in 2016 89 % of debt at fixed rate 2016 Operating Changes in Investments Dividends 2017 Cash flow working capital & others (*) (*) “Other” incl
Slide 8: Financial Structure
Financial Structure Solvency ratios Maturities €M 2016 2017 € million 3,241 EBITDA / Interest (*) 9.4x 10.3x Liquidity sources FFO / Debt 23.2 % 24.8 % € 2,227M Debt / EBITDA 3.5x 3.2x (*) EBITDA / Net finance cost excluding capitalisations Other Debt structure by instrument 2017 USPP EIB & ICO loan
Slide 9: Progress in our Strategic Plan 2014-2019
Progress in our Strategic Plan 2014-2019
Slide 10: 2014-2017 Achievements
2014-2017 Achievements Investment 2014-19: €4,575M Efficiency 2014-19: EBITDA margin ≥ 200bps 60 % 70 % EBITDA Margin 2017: 78.3 % €3,575M 7% €1,000M Control of operating costs Financial structure 2014-19: ND/EBITDA 3.5x Growth 2014-19: EPS 5-6% & DPS 7% CAGR 3.5x Growth in EPS 6.1 % CAGR 14-17(*) D
Slide 11: Solid progress in the investment plan 2014-2017
Solid progress in the investment plan 2014-2017 2014 -2019 Investment Approval of the electricity transmission Plan 2015-2020 Progress in interconnections: new interconnection with France through €4,575M Catalonia; strengthening of the interconnection with Portugal and the beginning of the new inter
Slide 12: Transmission network progress 2014-2017
Transmission network progress 2014-2017 Main investment axes to 2019 Solorzano Regoelle Asturias-Galicia Arkale INELFE North - East Luengos-Pola de Gordón TAV Burgos - Vitoria Gerona Norte Lleida-Barcelona II TAV Olmedo-Zamora Coll-Blanc-Facultat-Trinitat Aragón-Levante San Martín E.P.E. Castellón S
Slide 13: Performance of the telecommunication infrastructure business
Performance of the telecommunication infrastructure business Acquisition of the right to use the ADIF fibre optic network, for the sum of €434M Fibre optic network of 33,000 km, meshed and deployed across two infrastructures: the electricity transmission grid and the railway network Growth driven by
Slide 14: International business performance
International business performance 1,314 km of circuit 2014 2015 2015 2017 Transmisora Transmisora Transmisora REDESUR Eléctrica Sur Eléctrica Sur2 Eléctrica Sur3 45% acquisition Commissioning Awarding Awarding 2017 Tesur 2015 Transmisora REDESUR- Eléctrica Sur4 2 Transmisora Awarding 3 Eléctrica Su
Slide 15: Efficiencies
Efficiencies Operative efficiency Financial efficiency 207 182 181 ≥ 200bps 170 157 78 % 3.8 % 77 % 3.5 % 75 % 3.2 % 75 % 2.9 % 74 % 2.8 % 2013 2014 2015 2016 2017 2019 2013 2014 2015 2016 2017 2019 EBITDA margin Finance cost 2.9% Cost of debt Review of O&M, construction and supply policies Containm
Slide 16: Attractive returns for the shareholder
Attractive returns for the shareholder Distribution of dividends Shareholder remuneration policy 0.9188 (*) 0.8587 0.8025 0.7500 ∆ 7% CAGR DPS Growth of 7% (CAGR 2014-19) since 2014 Interim dividend payment in January and additional dividend in July, to all shares with dividend rights 2014 2015 2016
Slide 17: Energy transition 2030 horizon
Energy transition 2030 horizon
Slide 18: Sustainable future
Sustainable future Change to less emitting energy vectors, Paris Agreement December 2015 (COP 21) development of emission-free generation & Clean Energy Package* 40% reduction in greenhouse gas emissions and increased energy efficiency: 27% renewable energy Electrifying mobility 30% energy efficienc
Slide 19: Key role of network operators
Key role of network operators Available international Increase interconnection capacity to efficiently interconnection capacity continue the transition to a single European market : Bay of Biscay and Trans-Pyrenees Interconnections Links on Balearic and Canary islands Guarantee system operation with
Slide 20: Challenges and principles of the energy transition
Challenges and principles of the energy transition Electricity tariff breakdown of costs Financial stability of the electricity sector Adequate profitability to enable the Taxes 20% investment necessary for the transition of Energy policy the energy model costs 24% Turn the electrical tariff into a
Slide 21: Shareholders and investors contact
relacioninversores@ree.es Presentation available at: www.ree.es Shareholders and investors 2017 Results and progress of the Strategic Plan 2014-2019 19 February 2018
Slide 22: 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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