50 slides from Redeia Corporacion Sa's shareholder meeting presentation, Jun 4, 2024
Slide 1: Shareholders General Meeting
redeia Valuing the essentials Shareholders General Meeting
Slide 2: Difficult international panorama: uncertainty, wars, humanitarian crises
Difficult international panorama: uncertainty, wars, humanitarian crises, etc. Change photo
Slide 3: Polarised situation calling for greater autonomy in strategic sectors
Polarised situation calling for greater autonomy in strategic sectors
Slide 4: Ecological transition essential in the fight against the climate emergency
Ecological transition essential in the fight against the climate emergency
Slide 5: New European regulation to promote energy transformation
New European regulation to promote energy transformation
Slide 6: At national level
At national level: • PNIEC update • Modifications to current Planning • Start of Planning 2025-2030
Slide 7: Review of CNMC circulars related to remuneration of transmission activities
Review of CNMC circulars related to remuneration of transmission activities
Slide 8: Renewable integration record: more than 50% contribution by 2023
Renewable integration record : more than 50 % contribution by 2023
Slide 9: Keys to integration: strength of the grid and operational flexibility
Keys to integration: strength of the grid and operational flexibility measures
Slide 10: More connections and storage to make progress
More connections and storage to make progress
Slide 11: Strengthening the transmission grid is key to accelerating the green transition
Strengthening the transmission grid is key to accelerating the green transition
Slide 12: Billion Euros of investment in the grid this year and coming years
1 billion Euros of investment in the grid this year and in coming years
Slide 13: Progress in international interconnections, inter-island links and energy storage
Progress in developing international interconnections, new inter-island links and energy storage
Slide 14: Long-term framework agreements for the supply chain
Long-term framework agreements for the supply chain
Slide 15: New facilities to drive sustainable development in Latin America
New facilities to help continue driving sustainable development in Latin America
Slide 16: Boosting digital transformation through satellite connectivity
Boosting digital transformation through satellite connectivity
Slide 17: Expanded fibre optic network to achieve universal connectivity
Expanded fibre optic network to achieve universal connectivity
Slide 18: Innovation and talent for the green and digital transitions
Innovation and talent to make the green and digital transitions possible
Slide 19: Robust, transparent corporate governance system
Robust, transparent corporate governance system adapted to international best practices
Slide 20: Committed to ethics, compliance and integrity
Committed to ethics, compliance and integrity
Slide 21: Embracing diversity: generations and nationalities
Embracing diversity: 5 generations and 28 nationalities
Slide 22: New Workplace Safety and Well-being Plan 2024-2025
New Workplace Safety and and Well-being Plan 2024-2025: a pioneering and innovative model
Slide 23: Sustainability Commitment 2030: goals achieved
Sustainability Commitment 2030: 52 % of goals achieved
Slide 24: New report: pioneers in adapting to the European Directive
New report: pioneers in adapting to the European Directive
Slide 25: Commitment to the country: social innovation projects
Commitment to the country: 85 social innovation projects in 564 municipalities since 2019
Slide 26: Integral Impact Strategy to improve people's lives
Integral Impact Strategy to improve people’s lives
Slide 27: Financing with ESG criteria: debt with sustainable criteria
Financing with ESG criteria: 62 % of debt with sustainable criteria
Slide 28: Sustainable supply chain management
Sustainable supply chain management
Slide 29: Leadership in sustainability with a presence in the main indices
Leadership in sustainability with a presence in the main indices
Slide 30: Spain is a leader in an industrial revolution: Redeia, key player
Spain is a leader in an industrial revolution for the first time: Redeia, key player
Slide 31: Shareholders General Meeting
redeia Valuing the essentials Shareholders General Meeting
Slide 32: We are increasing investment in Spain to achieve the energy transition
We are increasing investment in Spain to achieve the energy transition Transmission System Operator (TSO): TSO activities High levels of service quality +55 % €825 M Availability rate vs investment in 98 % of the national transmission 2023 2022 grid Record integration of renewable energies Electrici
Slide 33: We are the driving force for achieving universal connectivity
We are the driving force for achieving universal connectivity Reintel Hispasat Our goal is to reduce the digital divide and help achieve digital transformation Extending fibre optic networks to new areas We have created a new era in satellite (National coverage networks with communications connectio
Slide 34: Regulatory advances related to energy and climate issues
Regulatory advances related to energy and climate issues Regulatory developments: Approval of the modification to the parameters of the resolution for the of uniqueness of the Bay of Biscay Project. EU Recovery Plan (Next Generation EU Funds): €931 M to finance the Electricity Planning. The Eu
Slide 35: Larger grid to promote the decarbonisation of the electricity system
Larger grid to promote the decarbonisation of the electricity system Electricity Planning 2021-2026 Approval of the Modifications of Specific Aspects: ~ €7,500 M GOAL total Planning a • 73 actions. investment cleaner energy country • €489 M of additional investment. Electricity planning: 67 % 66 % s
Slide 36: We are building grids for the future and acting as a catalyst
We are building grids for the future and acting as a catalyst for the energy transition Investments Astillero - Cacicedo Bay of Biscay Güeñes - Itxaso Red Eléctrica Lousame - Tibo - Mazaricos Cerdá Substation €825 M in 2023 Inelf e: €57 M Hospitalet - Galicia - Portugal Airport Connection Mosque - P
Slide 37: An increasingly renewable and decarbonised electricity system
An increasingly renewable and decarbonised electricity system Breakdown of electricity generation in 2023 Pumped-storage hydro 1.9 % Renewable energies Nuclear 20.3 % 62 % of installed capacity in Spain is Hydro 9.5 % renewable. Coal 1.5 % Wind 23.5 % More than 50 % of electricity Fuel+Gas 1.7 %
Slide 38: We reached new milestones in our diversification businesses
We reached new milestones in our diversification businesses Redinter Hispasat Commercial start-up of Tesur 4 in January. Launch and commercial start-up of the Amazonas Nexus. Start-up of the second stageof the Redenor project in Chile. Launch of the Conéctate 35 Programme to provide rural br
Slide 39: Net Profit growth above estimates
Net Profit Growth above estimates. The dividend proposed to the GSM for 2023 is €1 per share, fulfilling our commitment to the market. €2,129 M €1,508 M €690 M Revenue* EBITDA Net profit €2,065 M in 2022 €1,491 M in 2022 €665 M in 2022 €996 M €4,975 M Investment Net Debt €1,032 M in 2022 €4,634 M in
Slide 40: Revenue increased by 3.1% as a result of growth in all business areas
Revenue increased by 3.1 % as a result of growth in all business areas. M€ 21 7 2,129 Business regulated in Spain (+1.6 %): higher transmission revenues and higher operating revenues following the 18 8 26 review of remuneration parameters 2023-2025. 2,065 International (+14.8 %): Commissioning o
Slide 41: Comparable operating expenses grew by 3.4%
Comparable operating expenses grew by 3.4 % as a result of the higher volume of activity. +€33 M M€ +4.6 % 35 24 748 715 13 13 Comparables Non comparables +€9 M +3.4 % Operating costs Perimeter Construction Transformation Other recurring Operating costs 2022 change projects Plan costs 2023 Evolution
Slide 42: EBITDA increased by 1.1%
EBITDA increased by 1.1 %, thanks to regulated businesses and fibre optic. M€ +1.1 % 15 1,508 7 9 8 1,491 22 EBITDA TSO International Satellite Fibre optic Others EBITDA FY22 FY23 Growth of the TSO with higher revenue from transmission and system operation, partially offset by higher operating exp
Slide 43: Solid operating performance and financial management boosted Net Profit
Solid operating performance and financial management boosted Net Profit +3.7 % M€ 12 12 690 17 665 2 14 Net base EBITDA Depreciation Financial Corporate Minority Net base 2022 and others results Tax interests 2023 Lower depreciation and amortisation and other’s due to the the Amz-2 satellite reach
Slide 44: Strong growth in TSO investments
Strong growth in TSO investments More than 83 % of investments are eligible under the European Taxonomy. TSO: €825 M (+55 %) INVESTMENT (M€) Development of new electricity axes. Inter-island connections (Ibiza-Formentera). International connections with France and Portugal. 1,032* 996 Energy
Slide 45: Committed to a solid and balanced capital structure
Committed to a solid and balanced capital structure. Firm commitment to credit strength €4,975 M 89 % 2.14 % Net financial debt Fixed rate debt Cost of debt 3.3 x 23.2 % ‘A-’ Net debt/EBITDA stable outlook FFO/Net Debt Fitch and S&P €1.0 /share Fulfilling our commitment to the Dividend 2023 market.
Slide 46: Financing linked to sustainable criteria
Financing linked to sustainable criteria Aligned with European Taxonomy Issue of €500 M green hybrid instrument in January 2023 with a coupon of 4.625 % and aligned with Redeia's Green Financing Framework. 45 % of Issue of €500 M green bond issue in January 2024 with a 10-year 62 % of institutio
Slide 47: 2024: base year for future growth
2024: base year for future growth The TSO will make the largest investment in history, assuming its responsibility as the mainstay of the energy transition TSO investment M€ >150 % ~ 1,000 877 830 825 672 564 532 493 439 414 421 392 413 426 415 ~€1,000 M/year estimated gross investment in the coming
Slide 48: 2024: base year of future growth
2024: base year of future growth Results affected by end of regulatory life of pre-98 assets Estimated results 2024 TSO Termination of remuneration of pre-98 assets due to the end of their regulatory useful life (- €307 M) EBITDA > €1,300 M and commencement of REVU2 recognition for Net profit ~ €5
Slide 49: Further increase in TSO investments
Further increase in TSO investments Total Redeia investment reaches €5,000 M in the period 2021-25 Investment 2021-2025 Progress 2021-2023 M€ ~5,000 ~4,800 TSO Telecommunications 4,400 ~€3,900 M ~€700 M ~3,900 +10 % +5 % 46 % ~3,700 54 % 44 % TSO 56 % 3,350 International Telecommunications Others In
Slide 50: Reaffirming financial targets 2021-2025
Reaffirming financial targets 2021-2025 Strong financial structure and attractive shareholder remuneration Financial efficiency 2025 Sustainable dividend policy MARGIN €1/share EBITDA >70 % RATIO Land 0.8 €/share FFO / Net Debt >15 % RATIO Net Debt / EBITDA <5 x MAINTAIN SOLIDITY 2021 2022 2023 2024