Slide 1: Results for the year 2022
Results for the year 2022 February 2023 redeia Valuing the essentials
Slide 2: Agenda
1. Real commitment to a sustainable future. 2. Highlights & 2022 results. 3. Outlook for 2023. 4. Progress on the 2021-2025 Strategic Plan. Results FY 2022. February 2023 2
Slide 3: Real commitment to a sustainable future
redeia 1 Real commitment ° to a sustainable future
Slide 4: Ensuring electricity supply and connectivity
Ensuring electricity supply and connectivity, promoting an unbiassed ecological transition that is in line with sustainability criteria, placing value on our neutrality and contributing to social and territorial cohesion. Results FY 2022. February 2023 4
Slide 5: 2022 records in wind and photovoltaic production
• In 2022, records in wind and photovoltaic production have been achieved, laying the foundations for 30% consolidating an electricity system with 74 % renewables in 2030. January 2023, record renewable energy. 20% 10% • 2022, an exporting year. The Spanish electricity system breaks the import trend
Slide 6: Results FY 2022. February 2023
• • • • • Results FY 2022. February 2023 6
Slide 7: Emissions reduction and sustainability targets
• 30 % reduction of emissions under Scope 1 & 2*. • 2/3 suppliers with approved SBTi. • Commitment to protect vegetation and fight against deforestation • 100 % Scope 1 emissions offset in 2023. on 100 % of investment projects. • At least 10 suppliers with the greatest impact, with criteria of circu
Slide 8: ESG ratings and recognition
86 75.8 4.3 AAA / 8.1 69 73 • 73 5.7 52 • 2.9 39.3 43 • In addition, S&P ESG assessed Redeia with 82 points out of 100. • Redeia, among the 10 most sustainable companies in its industry in the world, Redeia score according to Sustainability Sector average Yearbook 2023. Electric Conventional Utiliti
Slide 9: Highlights & 2022 results
redeia Highlights & 2022 results
Slide 10: Highlights: system operation and regulation
• System Operation: high levels of service Final transmission Tariff Orders for 2016-2019*: the values are quality with a network availability rate adjusted to the final tariffs, approved for the period. exceeding 98 %. Approved Chira-Soria remuneration methodology: Recognition of work in progre
Slide 11: Highlights: international and satellite business
• Commissioning of Redenor and Redenor 2 • Acquisition of Axess Networks for ~ € 120 M, a in Chile, and TESUR 4 in Peru. company providing satellite connectivity, video transmission, data and internet access services. • Closing of the acquisition of five transmission lines in Brazil through Argo Ene
Slide 12: Key financial figures 2022
€2,065 M €1,491 M €665 M Revenues* EBITDA Net profit €1,983 M in 2021 €1,499 M in 2021 €681 M in 2021 €1,032 M €4,634 M Investments Net Debt €576 M in 2021 €5.648 M in 2021 €1,147 M €0.2727per share FFO Distribution of interim dividend €1,178 M in 2021 9 January 2023 * Including revenues and share o
Slide 13: Profit and loss and EBITDA by business
P&L (€ M) 2022 2021 Δ €M Δ% EBITDA (€ M) FY22 FY21 Δ €M Δ% Revenues* 2,065.4 1,982.5 +82.9 +4.2 TSO 1,132.9 1,197.5 -64.6 -5.4 International 90.4 50.7 +39.7 +78.1 Other income and OWC** 140.6 66.4 +74.2 +111.8 Satellite 147.7 133.4 +14.3 +10.7 Operating expenses -714.8 -550.2 -164.5 +29.9 Fibre opti
Slide 14: Revenues by business
€M Regulated business in Spain: extraordinary impact based on Tariff Orders (€ -35M). 41 8 2,065 International Business: significant contribution in Brazil 1,983 47 after commissioning of assets, acquisition of Argo IV and 5 3 concessions authorized in November. Increased number of 11 projects c
Slide 15: Operating costs
€M +€165 M +29.9 % 18 715 16 48 23 60 550 Non-comparable + €147 M Comparable +3.4 % 2021 Operating costs Chira Soria costs Change in perimiter O&M Plan Transformation plan Rest of recurring 2022 Operating costs expenses Construction costs of Chira Soria € 60M recognised as ‘Operating costs’ in acc
Slide 16: EBITDA performance
€M +1.8 % 35 1,526 1,499 14 1 1,491 40 2 65 2021 EBITDA TSO International Satellital Fibre optic Other Reported 2022 TSO Tariff Adjusted 2022 EBITDA adjustment EBITDA EBITDA performance affected by the non-recurring impact in TSO following the regularization of revenues for the period 2016-2019 an
Slide 17: Net profit performance
€M +1.5% 681 26 691 12 13 665 7 11 23 2021 Net profit EBITDA D&A Net financial results Corporate tax Non-controlling 2022 Net profit TSO tariff Adjusted 2022 Net interests adjustment profit Increased depreciation and amortisation mainly linked to the satellite business. Improved net financial re
Slide 18: Investments
Strong increase in investments due to the special €M +79.3 % acceleration plan launched in the transmission grid. Noteworthy is the degree of progress on the Ibiza- 325 * 1,032 Formentera, Peninsula-Ceuta, Tenerife-La Gomera +22.9 % and Galicia-Portugal interconnections. Completion of the Lanzar
Slide 19: Cash flow and net debt
€M Operating 6.000 5,648 Cash Flow 1,567* 544 3.1 x 1,032 ND/EBITDA 5.000 4,634 3.8 x in 2021 996 27 4.000 1,147 420 3.000 24.7 % 2.000 FFO/ND 1.000 20.9% in 2021 0 FY2021 FFO Change in Investments Dividends 49% Reintel working capital sale Other FY2022 ‘A-’ Stable outlook Fitch and S&P Strong cas
Slide 20: Debt structure
3% 3% €M 42% 7% Eurobonds 2.500 2,044 ESG financing Non-current loans 2.000 35 % in 2021 Long-term credits 1.500 1,212 28% 1,090 59% USPP 1.000 680 608 Other 511 5.0 years 500 0 Average life 11% 5.0 years in 2021 EUR 89% 11% Currency 2% 1.62 % 34% Cost of debt Fixed rate 46% €3,305 M Loans 1.52 % in
Slide 21: Outlook for 2023
redeia
Slide 22: 2023 outlook by business
TSO Greater commissioning of assets and update I n the System Operator remuneration. 877 Progress of the Chira-Soria project. 830 > 80 % >700 International 532 Contribution of new lines acquired in Brazil 439 414 421 and assets commissioned. 392 413 405 426 Satellite Start of Amazonas Nexus
Slide 23: Progress on the 2021-2025 Strategic Plan
redeia A Progress on the 2021-2025 : Strategic Plan
Slide 24: Investment plan 2021-25 new target
€M ~4,800 4,400 26% 19% 41% 54% +10 % TSO ~ 3,700 20% 40% International 3,350 Telecomunications Others Initial Plan 2021-25 New Target 2021-25 * International Business initial capex target to 2025: € 224 M. Results for 2022. February 2023 24
Slide 25: Financial targets and dividend
2022 2023e 2025e Actual Estimate Targets EBITDA Margin 73.7 % > 72 % > 70 % FFO / Net Debt 21.3 % > 21 %* > 15 % Net Debt/ EBITDA 3.1x ~ 3.6x* <5x * Following the rating agencies' methodology (including 50 % of the hybrid bond as financial debt) the FFO/Net Debt ratio is > 20 % and the Net Debt/EBIT
Slide 26: Q&A session
redeia 5, Q&A session
Slide 27: Valuing the essentials
redeia Valuing the essentials red eléctrica reintel hispasat redinter elewit
Slide 28: Disclaimer
This document has been produced by Red Eléctrica Corporación, S.A. for the sole purpose expressed herein. 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 El