Redeia Corporacion Sa · BME:RED
Redeia Corporacion Sa — Red Eléctrica Corporación — Q1 2021 Earnings Presentation
35 slides from Redeia Corporacion Sa's earnings presentation, April 2021
Slide 1: 1Q 2021 Results and Strategic Plan 2021-2025
1Q 2021 Results and Strategic Plan 2021-2025 April 2021
Slide 2: Index
Index 1. 1Q 2021 Results 2. Strategy 2021-2025 3. Financial targets and dividend policy 2021-2025 1Q 2021 Results and Strategic Plan 2021-2025 April, 2021 2
Slide 3: 1Q 2021 Results
1Q 2021 Results 1Q 2021 Results and Strategic Plan 2021-2025 April, 2021 3
Slide 4: Significant events
1Q 2021 RESULTS Significant evens The Congress approved the Draft Law on Climate Change and Energy Transition, which stablishes the targets to achieve the decarbonization of the economy before 2050, with an 100% renewable electricity system. This project is aligned with the National Energy and Cli
Slide 5: Highlights vs. 1Q 2020
1Q 2021 RESULTS Results marked by a Highlights vs. 1Q 2020 complex scenario. €483.6M €388.4M €181.1M Turnover EBITDA Net profit -3,4 % -3,2 % -4,9 % €360.6M €64.8M €81.9M FFO Transmission grid Total investment -1.7 % investment -82,1 % * +1,1 % €5,942.8M 1.52% 3.8x Net Financial Debt Cost of debt Ne
Slide 6: Key financial figures
1Q 2021 RESULTS Key financial figures Lower transmission revenue arising from the application of €M 1Q 2021 1Q 2020 Δ% financial return reduced by 42bp. Turnover 483.6 500.5 -3.4 No significant variations in the rest of the activities carried out Operating expenses -118.8 -119.2 -0.4 by the Grou
Slide 7: Breakdown by business
1Q 2021 RESULTS Diversification of results in line with the Breakdown by business Strategic Plan 2018-2022. Turnover EBITDA 1Q 2020 1Q 2021 1Q 2020 1Q 2021 0.1 % 0.9% 14.8% 2.5% 14.9% 2.8% 14.3% 3.9% 15.0% 2.5% 82.7% 82.6% 80.2% 82.9% 1Q 2021 Results and Strategic Plan 2021-2025 April, 2021 7
Slide 8: Balance strength
COMPANY DEBT Strong advance towards commitment to Balance strength 100% ESG financing in 2030. MATURITIES DEBT STRUCTURE 3.000 €2,579 3.1% 2.3% Eurobonds M liquidity 2.000 31 March 2021 12% Long-term loans Long-term credits 1.000 52% USPP 0 30% Others 2021 2022 2023 2024 2025 2026-onwards 18% 8% Fix
Slide 9: Strategy 2021-2025
Strategy 2021-2025 1Q 2021 Results and Strategic Plan 2021-2025 April, 2021 9
Slide 10: Strategic pillars
STRATEGIC PLAN Strategic pillars Our goal is to drive the green and digital transformation, as the backbone of a decarbonised energy system, offering access to the electricity system and telecommunications, helping to bridge the digital divide and contributing to innovation and the developme
Slide 11: Make the energy transition a reality and fight climate change
MAKE THE ENERGY TRANSITION A REALITY AND FIGHT CLIMATE CHANGE Make the energy transition in Spain a relality Key actor in ecological transition with the massive inclusion of renewable sources in the electricity system. Make the energy transition a reality Develop the infrastructures needed for energ
Slide 12: Investment in Spain's electrical infrastructures 2021-2025
INVESTMENT IN SPAIN’S ELECTRICAL INFRASTRUCTURES 2021-2025 Make the energy transition in Spain a relality SIGNIFICANT LEVELS OF INVESTMENTS AFTER THE APPROVAL OF THE INFRASTRUCTURE PLAN 21-26 Make the energy transition a reality Investment in Transmission Grid: €2,846 M Peninsula Island systems Gueñ
Slide 13: Investment in Spain's electrical infrastructures 2021-2025
INVESTMENT IN SPAIN’S ELECTRICAL INFRASTRUCTURES 2021-2025 Make the energy transition in Spain a relality Make the energy Estimated growth of main figures 2021-2025. TSO transition a reality TSO INVESTMENTS EBITDA ESTIMATED GROWTH €3,349M More than €3,300 Impact of end of remunerating useful life pr
Slide 14: Consolidate international presence as source of diversification and growth
CONSOLIDATE THE INTERNATIONAL PRESENCE OF THE RED ELÉCTRICA GROUP AS A SOURCE OF DIVERSIFICATION AND GROWTH Make the energy transition in Spain a reality Consolidate More than €1,300M invested in international assets up to 2020. international business Critical mass in LatAm to drive organic growth.
Slide 15: Consolidate international presence as source of diversification and growth
CONSOLIDATE THE INTERNATIONAL PRESENCE OF THE RED ELÉCTRICA GROUP AS A SOURCE OF DIVERSIFICATION AND GROWTH Make the energy transition in Spain a reality Consolidate international business Organic growth in Brazil, Peru and Chile Participation in tender processes for transmission infrastructures tha
Slide 16: Investment in international electrical infrastructures 2021-2025
INVESTMENT IN INTERNATIONAL ELECTRICAL INFRASTRUCTURES 2021-2025 Make the energy transition in Spain a reality Consolidate Estimated growth of main figures 2021-2025. International business international business INVESTMENT ESTIMATED GROWTH EBITDA €224M TACC + 6% 2021E Acc 21-25 2020 2025E Strong gr
Slide 17: Telecommunications are key for better connectivity
TELECOMMUNICATIONS ARE A KEY ELEMENT FOR PROGRESS TOWARDS BETTER CONNECTIVITY... Make the energy transition in Spain a reality The satellite business as a tool to bridge the digital divide Drive connectivity High-quality connectivity for homes and SMEs in rural areas and digital hubs to offer basi
Slide 18: Making investments amounting to €735M
…MAKING INVESTMENTS AMOUNTING TO €735M Make the energy transition in Spain a reality Satellite infrastructure investment: €620M Drive connectivity New Amazonas Nexus satellite to replace AMZ 2, with new technologies that are more efficient and versatile. Transformation towards more vertical inte
Slide 19: Hispasat: new strategic plan
HISPASAT: NEW STRATEGIC PLAN TO OPTIMISE CURRENT BUSINESS AND TAKE ADVANTAGE OF OPPORTUNITIES IN A SECTOR IN A PHASE OF TECHNOLOGICAL CHANGES Make the energy transition in Spain a reality Hispasat is the world’s 10th satellite operator Drive connectivity by revenue, 4th satellite operator in Latin
Slide 20: Hispasat: main strategic lines
HISPASAT: NEW STRATEGIC PLAN TO OPTIMISE CURRENT BUSINESS AND TAKE ADVANTAGE OF OPPORTUNITIES IN A SECTOR IN A PHASE OF TECHNOLOGICAL CHANGES Make the energy transition in Spain a reality MAIN STRATEGIC LINES Drive connectivity The strategy of Hispasat must: Continuity of current business: Video and
Slide 21: Hispasat: AM-NX programme and business size
HISPASAT: NEW STRATEGIC PLAN TO OPTIMISE CURRENT BUSINESS AND TAKE ADVANTAGE OF OPPORTUNITIES IN A SECTOR IN A PHASE OF TECHNOLOGICAL CHANGES Make the energy transition in Spain a reality SITUATION AM-NX PROGRAMME Business size in Drive connectivity Hispasat. The satellite will start testing in 20
Slide 22: Hispasat: estimated evolution of main magnitudes 2021-2025
HISPASAT: NEW STRATEGIC PLAN TO OPTIMISE CURRENT BUSINESS AND SEIZE OPPORTUNITIES IN A SECTOR UNDERGOING TECHNOLOGICAL CHANGE Make the energy transition in Spain a reality Estimated evolution of main magnitudes 2021-2025. Hispasat Drive connectivity INVESTMENT EBITDA ESTIMATED EVOLUTION 620 M€ TACC
Slide 23: Development of the optical fibre business and 5G
DEVELOPMENT OF THE OPTICAL FIBRE BUSINESS AND NEW OPPORTUNITIES WITH THE DEPLOYMENT OF 5G NETWORKS Make the energy transition in Spain a reality MAIN STRATEGIC LINES Drive connectivity Continue to develop the dark optical fibre business, expanding the Strategic partners to support the search for tar
Slide 24: Reintel + 5G estimated growth 2021-2025
DEVELOPMENT OF THE OPTICAL FIBRE BUSINESS AND NEW OPPORTUNITIES WITH THE DEPLOYMENT OF 5G NETWORKS Make the energy transition in Spain a reality Estimated growth of main figures 2021-2025. Reintel + 5G Drive connectivity INVESTMENT ESTIMATED GROWTH EBITDA €115 M TACC + 2-5% 2021E Acc 21-25 2020 2025
Slide 25: Efficiency in operations, finance and continuous improvement
EFFICIENCY IN OPERATIONS, FINANCE AND CONTINUOUS IMPROVEMENT ARE KEY FACTORS TO DEVELOP OUR STRATEGIC PILLARS Make the energy transition in Spain a reality Efficiency based on the generation of value through the correct handling of resources, identification of synergies Efficiency and the optimisati
Slide 26: Innovation, technology and people
INNOVATION, TECHNOLOGY AND PEOPLE Innovation and technology Make the energy transition in Spain a reality People INNOVATION AND TECHNOLOGY PEOPLE Greater importance of new technologies in driving the Promote cultural transformation, sustainable group’s business. management and convert the organi
Slide 27: Commitment to sustainability and responsible management
WE WILL CONTINUE TO MOVE FORWARD IN OUR COMMITMENT TO SUSTAINABILITY AND ENSURE RESPONSIBLE MANAGEMENT OF THE GROUP’S BUSINESS. Make the energy transition in Spain a reality The Red Eléctrica Group focuses on the creation of shared value through responsible development of its Sustainability activiti
Slide 28: Our commitment to sustainability in 2030
OUR COMMITMENT TO SUSTAINABILITY IN 2030 IS INTENDED TO BE PERMANENT Make the energy transition in Spain a reality Decarbonisation of the economy Contribution to the improvement of the Sustainability Reduce our GHG emissions by over 40%. environment Empower 100% of society to be actively involve
Slide 29: Leadership in the main sustainability indicators
LEADERSHIP IN THE MAIN SUSTAINABILITY INDICATORS Make the energy transition in Spain a reality Prominent position and ample recognition in prestigious rankings that show our excellent level of commitment and Sustainability firm belief in transparency and open business. The RE Group is present in t
Slide 30: Financial targets and dividend policy 2021-2025
Financial targets and dividend policy 2021-2025 1Q 2021 Results and Strategic Plan 2021-2025 April, 2021 30
Slide 31: Objectives 2021-2025: changes in main figures
OBJECTIVES 2021 - 2025 Visibility and clarity in the Changes in main figures medium and long-term goals. Turnover 2020-2025 EBITDA 2020 2021E 2023E 2025E 2030E 2020 2021E 2023E 2025E 2030E Transmission grid investment Net profit 2020 2021E 2023E 2025E 2030E 2020 2021E 2023E 2025E 2030E 1Q 2021 Resul
Slide 32: Revenue distributed by business sector
OBJECTIVES 2021 - 2025 Revenue distributed by business sector Turnover 2025 EBITDA 2025 TSO TSO International Internacional Reintel Reintel Hispasat Hispasat Others Otros Regulated business will be around 80% of the Group’s turnover in 2025. Diversification strategy partially offsets the TSO reducti
Slide 33: Objectives 2021-2025: financial objectives
OBJECTIVES 2021 - 2025 Sustainable dividend policy Financial objectives aligned with a demanding growth profile. Investments 2021-2025: €4,400 M (*) TSO Investments Evaluation of strategic assets 224 Telecommunications Investments Assess the value of the group’s strategic 735 International Investm
Slide 34: Thank you for your attention
Thank you for your attention www.ree.es
Slide 35: 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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