Redeia Corporacion Sa · BME:RED
Redeia Corporacion Sa — FY2023 Earnings Presentation
33 slides from Redeia Corporacion Sa's earnings presentation, Feb 28, 2024
Slide 1: Results FY 2023
Results FY 2023 February 2024
Slide 2: Table of contents
Table of contents 1. Building a sustainable future. 2. Highlights & 2023 results. 3. Outlook for 2024. 4. Progress on Strategic Plan 2021-2025. Results FY23. February 2024
Slide 3: Building a sustainable future
1 Building a sustainable future Results FY23. February 2024
Slide 4: Energy and climate legislative impulse
Energy and climate legislative impulse Regulatory developments Spanish Presidency. 2nd half of 2023: Reform of the electricity market design, with measures to promote energy independence; integration of renewables; and consumer empowerment. Others: Hydrogen and Decarbonised Gases Directive and R
Slide 5: Spain as Europe's renewable energy driver
Spain as Europe's renewable energy driver Benchmark in renewables integration thanks to Red Eléctrica • 2023 was the most renewable year in history Electricity demand coverage 2023 (%) and with the lowest CO2 equivalent emissions Turbine pumped 1.9% associated with electricity generation. Nuclear 20
Slide 6: Flexibility tools for the system operation
Flexibility tools for the system operation Key in a context of high renewable energy penetration Active demand response service In October we held the second auction of this balancing mechanism to ensure the necessary balance between generation and demand. Automatic power reduction system Maximi
Slide 7: Strengthening networks, a strategic pillar
Strengthening networks, a strategic pillar European Commission Network Action Plan Growth in demand: electricity consumption will grow by 60% by 2030. Integrating a large volume of renewables. 584,000 Expected network investment over the Adaptation to a more decentralised, digitalised €M next decade
Slide 8: Building networks for the future
Building networks for the future … … assuming a central role in the energy transition Astillero - Golfo de Bizkaia Cacicedo Lousame – Tibo - Mazaricos Güeñes - Itxaso Red Eléctrica Strengthening our efforts: Subestación Cerdá investments € 825 M investment in 2023 + 55 % Interconexión Galicia - Hosp
Slide 9: Consolidation of our diversification businesses
Consolidation of our diversification businesses … … that support the growth of the Group Consolidating our presence in Latin America. Successful launch of the Amazonas Nexus, which Focusing our growth in low-risk countries where we allows us to capture the opportunities that arise in have comp
Slide 10: Accelerating our efforts in all sustainability dimensions for greater value creation
Accelerating our efforts in all sustainability dimensions for greater value creation in the future Sustainable business model for social transformation Milestones Deployment of a Comprehensive Impact Strategy that will multiply our social and environmental contribution in all the geographies and b
Slide 11: ESG excellence recognised by leading institutions
ESG excellence recognised by leading institutions Redeia is among the world s top 10 most sustainable companies in its sector according to the Sustainability Yearbook 2024, and included in the 2024 ESG Top-Rated Companies List by Sustainalytics Redeia’s score AAA Sector average 83 B+ 77.1 8.2 73 74.
Slide 12: Highlights & 2023 results
2 Highlights & 2023 results Results FY23. February 2024
Slide 13: Accelerating our investments in Spain to enable the energy transition
Accelerating our investments in Spain to enable the energy transition TSO: Sustainable development of transmission network: 157 km of circuit and 143 positions. +55 % TSO investments High levels of quality service: national transmission grid availability rate over vs exceed € 800 M 97.6%. FY22
Slide 14: TSO relevant upcoming milestones in 2024
TSO relevant upcoming milestones in 2024 Estimated dates Hearing for modification of CNMC Circular 2/2019 to establish the financial Resolution on definitive remuneration rate for the transmission NECP* 2023-2030 New Planning 2025-2030 third regulatory period, remuneration for 2021. Update. draft. 2
Slide 15: Reaching new milestones in our diversification businesses
Reaching new milestones in our diversification businesses Commissioning of Tesur 4 in January, ahead of Amazonas Nexus launch and entry into commercial schedule. operation. The strategic agreement between Hispasat Start-up of the second phase of the Redenor project and Intelsat is extended to
Slide 16: Net Profit growth above our estimates
Net Profit growth above our estimates … Dividend proposed to the AGM amounts to €1 per share to be charged to 2023, fulfilling our commitment € 2,129 M €1,508 M € 690 M Revenues* EBITDA Net Profit € 2,065 M in 2022 € 1,491 M in 2022 € 665 M in 2022 € 996 M €4,975 M Investments Net Financial Debt € 1
Slide 17: Favourable evolution of EBITDA and significant contribution from financial results
… with favourable evolution of EBITDA and significant contribution from financial results P&L (€M) FY23 FY22 Δ€M Δ% EBITDA FY23 FY22 Δ€M Δ% Revenues* 2,129.2 2,065.4 +63.8 +3.1 TSO 1,141.7 1,132.9 +8.8 +0.8 Other income and OWC** 126.2 140.6 -14.3 -10.2 International 105.0 90.4 +14.6 +16.1 Operating
Slide 18: Revenues increased by 3.1%, due to growth in all businesses
Revenues increased by 3.1%, due to growth in all businesses €M 7 Regulated business Spain (+1.6%): higher transmission 21 2,129 revenues and increased revenues form operation following 18 8 the review of remuneration parameters 2023-2025, 26 together with larger projects for third parties. 2,065
Slide 19: Comparable operating expenses grew by 3.4%
Comparable operating expenses grew by 3.4% Impacted by higher activity volume + € 33M +4,6 % €M 35 24 748 715 13 13 Comparable Non comparable + € 9 M +3.4% FY22 Operating costs Change in perimeter Construction projects Transfomation Plan Rest of recurring FY23 Operating costs expenses Evolution of n
Slide 20: EBITDA increased by 1.1% driven by regulated businesses and fibre optic
EBITDA increased by 1.1% driven by regulated businesses and fibre optic €M +1.1% 15 7 1,508 9 8 1,491 22 FY22 EBITDA TSO International Satellite Fibre optics Other FY23 EBITDA TSO grows with higher revenues from transmission and System Operator, partially offset by higher operating expenses. Pos
Slide 21: Strong operating performance and financial management boost the Net Profit
Strong operating performance and financial management boost the Net Profit +3.7% €M 12 12 690 17 2 665 14 FY22 Net profit EBITDA Amortisations and other Net financial results Corporate tax Minorities FY23 Net profit Lower amortisations and other, due to the end of the useful life of the Amz-2 sate
Slide 22: Strong growth in TSO investments, exceeding €800 million
Strong growth in TSO investments, exceeding €800 million More than 83% of Group investments are eligible under the European Taxonomy TSO: € 825M (+55 %) Development of new electric axes (Hospitalet-Cerdá-Zona Franca). €M Inter-island interconnections (Ibiza-Formentera). Interconnection with Fr
Slide 23: Focus on balance sheet strength
Focus on balance sheet strength Net Debt increases by 7% €M Operating Cash Flow 569 3.3 x € 492M ND/EBITDA 996 4,975 4,634 500 232 664 23.2 % 1,156 FFO/DN ‘A-’ FY2022 FFO Change in Investments Dividends Hybrid bond Other FY2023 working capital Stable perspective Fitch & S&P FFO increased by 0.8 %
Slide 24: Sound financial structure and comfortable liquidity position
Sound financial structure and comfortable liquidity position Diversified funding sources at competitive costs, with the support of public entities Gross debt structure Maturities €M 4%3% Eurobond 3.000 10% 2,394 EIB 2.500 11% Other long term loans 2.000 €5,651M 59% Long term credits 1.500 1,189 13%
Slide 25: Sustainable financing
Sustainable financing Aligned with European Taxonomy Green hybrid bond issuance of €500 M in January 2023, with a coupon of 4.625% and aligned with Redeia's Green Financing Framework. 45 % of Issuance of € 500 M green bonds in January 2024 with a 10- 59 % institutional year maturity and a yield
Slide 26: Outlook for 2024
3 Outlook for 2024 Results FY23. February 2024
Slide 27: 2024: base year for future growth
2024: base year for future growth TSO will make the largest investment in history, assuming its responsibility as the backbone of the energy transition TSO Investment €M >150% ~ 1,000 877 830 825 672 564 532 493 439 421 414 392 413 415 426 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 28: 2024: base year for future growth
2024: base year for future growth Results impacted by termination of pre-98 assets 2024 Estimated results TSO EBITDA > € 1,300 M Termination of remuneration for pre-98 assets due to the Net Profit ~ € 500 M end of their regulatory useful life (- 307 M€) and start of REVU2 recognition for these fac
Slide 29: Progress on Strategic Plan 2021-2025
4 Progress on Strategic Plan 2021-2025 Results FY23. February 2024
Slide 30: New increase in TSO investments, reaching €3.9 billion
New increase in TSO investments, reaching €3.9 billion following the modification of the current National Transmission Plan Redeia's total investment reaches €5 billion in the period 2021-25 Capex 2021-2025 Progress 2021-2023 €M TSO Telecoms ~3,900 M€ ~700 M€ ~5,000 ~4,800 4,400 46% 44% +5 % ~ 3,900
Slide 31: Confirming our financial targets for the period 2021-2025
Confirming our financial targets for the period 2021-2025 Attractive shareholder remuneration and sound financial structure Financial efficiency 2025 Sustainable dividend policy EBITDA >70 1 € /share % MARGEN Floor €0.8 /share FFO/Net Debt RATIO >15 % Net Debt/EBITDA RATIO <5x 2021 2022 2023 2024 20
Slide 32: redeia
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Slide 33: Disclaimer
This document has been produced by Redeia, S.A. (hereinafter Redeia) for the sole This disclaimer should be taken into consideration by all the individuals or entities at purpose expressed herein. It should not in any event be construed as an offer of sale, whom this document is targeted and by thos