Redeia Corporacion SA · BME:RED
Redeia Corporacion SA — Red Eléctrica Corporación — H1 2013 Earnings Presentation
20 slides from Redeia Corporacion SA's earnings presentation, Sep 20, 2013
Slide 1: Results 1H2013 and Regulatory Update
Results 1H2013 and Regulatory Update 20th september 2013
Slide 2: Contents
Contents ■ Highlights and results ■ Regulatory update ■ TSO key role in the energetic policy 2
Slide 3: Highlights and results
Highlights and results
Slide 4: A new growth path
A new growth path Revenue (€m) EBITDA (€m) Net profit (€m) 1.299 1.755 1.215 1.637 492 460 1.397 1.002 390 1.200 846 1.126 772 330 286 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 4
Slide 5: 1H13 highlights
1H13 highlights ■ Recurring net profit amounted to €278m +6.2% vs. 1H12 ■ Relevant events in 1H13: revaluation of balance sheets, changes in scope Results of consolidation and impact of application of RD-l 9/2013 ■ Investments totalled €230m with €219m in transmission network ■ RD 9/2013 of urgent m
Slide 6: Results 1H13
Results 1H13 Income statement 1H 12 1H 13 1H 12 1H 13 % % (€m) actual actual proforma proforma Net revenue 850 856 0.8 839 894 6.5 EBITDA 655 645 ( 1.5) 648 683 5.3 Net profit 225 272 20.8 261 278 6.2 6
Slide 7: Balance & financial ratios evolution
Balance & financial ratios evolution Net debt (€m) Net debt/EBITDA 4,757 4,693 4,873 4,626 3.8x 3.7x 4.7x 3.9x 3.8x 3.6x 2,929 3,122 2008 2009 2010 2011 2012 1H13 2008 2009 2010 2011 2012 1H13 Investments* (€m) Other highlights 2008 2009 2010 2011 2012 1H13 2,309 Avg. cost Acquisitions 4.4% 3.5% 3.2
Slide 8: Regulatory update
Regulatory update 8
Slide 9: Electricity sector reform
Electricity sector reform Objetives of the electricity sector reform ■ New regulatory framework guaranteeing financial stability in the electricity sector ■ Significant reduction in system costs ■ Elimination of tariff deficit (€10,500m in 2012) Measures July 2013 ■ RD-l 9/2013 of urgent measures to
Slide 10: Electricity sector reform
Electricity sector reform RD-l 9/2013: 2013-2014 temporary methodology to calculate transmission retribution ■ Temporary methodology for 2013 and 2014 could be extended until definitive methodology is in force ■ Establishes an implicit RAB calculated by the CNE and a financial return equivalent to t
Slide 11: Electricity sector reform
Electricity sector reform Proposed RD: Methodology to calculate transmission revenue in the future ■ A single methodology applicable to all transmission facilities ■ The value of assets will depend on their replacement value and will be published in a resolution by the Directorate General of Energy
Slide 12: Electricity sector reform
Electricity sector reform Next steps ■ On 26 July sector agents submitted their comments on the published regulation ■ There will now be a dialogue process between the regulator and sector agents ■ Red Eléctrica considers a priority: The model needs to guarantee a reasonable return higher than the a
Slide 13: TSO key role in the energetic policy
TSO key role in the energetic policy
Slide 14: Electrification optimum level
Electrification optimum level: Potential of the electric sector and TSO role Electricity consumption Reduction of the vs. petroleum petroleum derived Management of demand and products in the final energy efficiency energy consumption 53% 50% 50% 49% Complete use of the available generation European
Slide 15: International interconnection
International interconnection Insufficient interconnection Exchange capacity (MW)(2) capacity(1) <5% 1,200 7,600 2011 5% to 10% 2,100 6,400 1,200 10% to 15% >15% 700 3,000 Portugal 4,300 1,400 3,000 600 Morocco 2,300 600 4,000 France 600 2,800 1,400 Today Expansi on in 2017 Expansi on > Total proces
Slide 16: High level of investments in islands
High level of investments in islands Canary Islands Balearic Islands Menorca Haria/Teguise 132kV S. Bartolome Callejones Macher Punta Grande Palma Mallorca Fuerteventura Tías Tías Playa Blanca Grid Meshing Playa Blanca Tenerife Grid Meshing La Oliva Corralejo La Oliva Ballest er Diq ue d el Est e E
Slide 17: Lower level of investments in mainland, but still relevant
Lower level of investments in mainland, but still relevant ■ Investments focused in: o Increase security of supply. o System costs reduction. ■ Estimated investment needs of €425-450m per annum. 17
Slide 18: Balance sheet strength: liquidity to cover 2013-2015 maturities
Balance sheet strength: liquidity as of 30th June 2013 to cover 2013-2015 maturities Debt breakdown Debt maturities (€m) Total gross Other Banks; 2% debt: USPP; 8% 3,276 €5,434m* 837 467 802 52 EIB+ICO; 29% Eurobonds; 61% 1,977 Liquidity sources 2013 2014 2015 2016 2017 & next Eurobonds emission Liq
Slide 19: relacioninversores@ree.es
relacioninversores@ree.es Presentation available at: www.ree.es Shareholders & investors/Presentations
Slide 20: 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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