Redeia Corporacion Sa · BME:RED

Redeia Corporacion Sa — Red Eléctrica Corporación — FY2016 Earnings Presentation

19 slides from Redeia Corporacion Sa's earnings presentation, Feb 23, 2017

  1. Slide 1: 2016 Results: Solid Progress toward 2014-2019 Targets

    2016 Results Solid Progress toward 2014‐2019 Targets 23 February 2017 2016 Results and solid progress toward 2014‐2019 targets 23 February 2017

  2. Slide 2: Contents

    Contents 2014‐2016 Achievements 3 2016 Results 5 2014‐2019 Horizon 11 2016 Results and solid progress toward 2014‐2019 targets 23 February 2017 2

  3. Slide 3: 2014-2016 Achievements

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  4. Slide 4: 2014-2016 Achievements

    2014‐2016 Achievements Investment 2014‐19: €4,575M Efficiency 2014‐19: EBITDA margin ≥ 200b.p. 49 % 33 % EBITDA margin 2016: 76.9 % €3,575M €1,000M Operating costs control Financial structure 2014‐19: ND/EBITDA 3.5x Growth 2014‐19: EPS 5‐6 % & DPS 7 % CAGR 3.5x EPS growth 6.4 % CAGR 14‐16(*) DPS 7 %

  5. Slide 5: Results

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  6. Slide 6: Significant events FY2016

    Significant events FY2016 Investment Efficiency  Group investments €643M.  EBITDA margin 76.9 %.  Mallorca‐Ibiza interconnection.  Review of O&M, construction and  Acquisition of 50 % of Transmisora procurement policies. Eléctrica del Norte (TEN).  Acquisition of 45 % of Redesur(*). (*) Acquis

  7. Slide 7: Significant events FY2016

    Significant events FY2016 Corporate governance Sustainability  Completion of the separation of  “RobecoSam Silver Class 2017” powers process. distinction.  GSM approval of REC share split.  Established presence on Dow Jones  The Ethical Boardroom Sustainability Indices (World & Europe). Corpora

  8. Slide 8: Key figures

    Key figures € million 2015 2016 2015‐16 Revenue 1,939 1,932 ‐0.3 % EBITDA 1,458 1,486 1.9 % Profit before tax 830 851 2.5 % Net profit 606 637 5.1 % Capex 448 643 Profit for the period rose 5.1% EPS CAGR 2014‐2016=6.4 % 2016 Results and solid progress toward 2014‐2019 targets 23 February 2017 8

  9. Slide 9: Financial structure: Net financial debt evolution

    Financial structure Net financial debt evolution € million + 43 4,906 433 4,949 643 The average remaining term to 1,147 114 maturity stands at 5.5 years 2.94 % cost of debt in 2016 vs. 3.20 % in 2015 84 % of debt at fixed rates 2015 Operating Changes in Investments Dividends 2016 Cash flow working c

  10. Slide 10: Financial structure: solvency and maturities

    Financial structure Solvency ratios Maturities € million 2015 2016 € million EBITDA / Interests(*) 8.5x 9.4x Liquidity sources 2,974 FFO / Debt 23.1 % 23.2 % € 2,254M Net debt/ EBITDA 3.4x 3.3x Euro Commercial Paper (*) EBITDA / net financial expenses excluding capitalisations Other USPP Debt struct

  11. Slide 11: 2014-2019 Horizon

    2014‐2019 Horizon

  12. Slide 12: In the first years, solid progress toward 2014-2019 targets

    In the first 3 years, solid progress toward 2014‐2019 targets  Strategic Plan progressing as expected.  Closure of the methodology for calculating transmission activity remuneration.  Extension of the useful life of assets through renovation and improvement.  Approval of energy planning to devel

  13. Slide 13: Growth through a balanced investment plan

    Growth through a balanced investment plan 2014‐2019 Investments II Strategic Plan Period  2015‐2020 National Infrastructure Plan. €4,575M  Increase Spain‐Portugal interconnection capacity.  Progress on the Soria‐Chira project. Storage & International  Chile tenders, Expansion Plan for the TSO &

  14. Slide 14: Efficiencies

    Efficiencies Operating efficiencies Financial efficiencies 207 182 181 170 ≥ 200bp. 3.8% 76.9% 3.5% 3.2 % 2.9% 75.2% 75.0% 74.0% 2013 2014 2015 2016 2019 2013 2014 2015 2016 2019  EBITDA margin  Financial expenses  Cost of debt Our efficiency targets supports the growth of the period 2016 Results

  15. Slide 15: Attractive returns for shareholders

    Attractive returns for shareholders Dividend distribution Shareholder remuneration policy (*) 0.7500 0.8025 0.8587 ∆ 7% CAGR DPS growth 7 % (CAGR 2014‐19). since 2014 Payment of interim dividend in January and the complementary dividend in July, on all shares with dividend rights. 2014 2015 2016 2

  16. Slide 16: Sustainable future

    Sustainable future Interconnections  Bay of Biscay and Trans‐Pyrenees interconnections.  Link between islands: Balearic Islands‐Peninsula and Gran Canaria‐Fuerteventura. Security of supply  Decarbonisation of the economy  Renewable growth in generation mix (55‐60%).  Interconnections  Renovati

  17. Slide 17: 2014-2019 Strategic Plan

    2014‐2019 Strategic Plan Growth: EPS 5‐6 % & DPS 7 % CAGR 2014‐2019 Highly visible EPS and DPS growth Balanced Performance investment plan: optimisation: €4,575M 78 % Consolidated activities EBITDA margin ≥ 200 b.p. (TSO & Telecom) In a very demanding 22 % New activities environment, we are able to

  18. Slide 18: Shareholders and Investors

    relacioninversores@ree.es Presentation available at: www.ree.es Shareholders and Investors 2016 Results and solid progress toward 2014‐2019 targets 23 February 2017

  19. Slide 19: 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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