Redeia Corporacion Sa · BME:RED
Redeia Corporacion Sa — Red Eléctrica Corporación — FY2013 Earnings Presentation
22 slides from Redeia Corporacion Sa's earnings presentation, Feb 26, 2014
Slide 1: 2013 Results, 2014 Outlook
2013 Results 2014 Outlook 26 February 2014
Slide 2: 2013 Results
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Slide 3: 2013 Removing uncertainty: new regulatory model (I)
2013 Removing g uncertainty: y new regulatory g y model ((I)) ■ Year's results shaped by one-off events: revaluation of assets, changes in scope of consolidation and impact of application of Financial and RD-l 9/2013. operating ■ Net profit grew 7.5%, up 8.8% in recurring terms. results ■ EBITDA in
Slide 4: 2013 Removing uncertainty: new regulatory model (II)
2013 Removing g uncertainty: y new regulatory g y model ((II)) ■ July 2013: RD-l 9/2013. Transmission revenues fell €72.3m due to application of urgent measures to ensure financial stability in the y sector. electricity Regulation ■ December 2013: RD 1047/2013. Approval of new regulation for the tra
Slide 5: 2013 Results: Main figures (proforma)
2013 Results: Main figures g (proforma)) (p €M 2012 2013 ∆% Net revenue 1 745 1,745 1 823 1,823 44 4.4 EBITDA 1,292 1,369 5.9 EBIT 900 968 7.5 Profit before tax 734 799 8.8 Results for the year 513 558 8.8 Company’s recurring net profit increased by 8.8 % 5
Slide 6: 2013 Results: Reconciliation of net profit
2013 Results: Reconciliation of net profit p €m 32.5 33 9 33.9 44.9 529 492 (23.9) (50.6) 2012 Recurring Revaluation of Impairment of Change of Regulatory 2013 assets assets consolidation Adjustment scope Reported net profit for 2013 increased by 7.5 % 6
Slide 7: 2013 Balance sheet: Net debt evolution
2013 Balance sheet: Net debt evolution €m -332 4,873 4,541 NET DEEBT Average cost of debt 3.84 %. Average debt life 5.7 years (*) Other includes changes to other non-current assets and liabilities, change to suppliers of PP&E and other items related to exchange rate derivatives. 7
Slide 8: Debt: Robust cash position
Debt: Robust cash position p BREAKDOWN OF DEBT MATURITIES €m 3,303 31/12/2013 Liquidity sources: 1,860 mn 802 417 157 77 DEBT STRUCTURE BY INSTRUMENT SOLVENCY RATIOS 2012 2013 Eurobond 55% EIB + ICO 32% EBITDA / Interests* 7.0 6.8 USPP 9% FFO / Debt 21.0% 21.5% Commercial paper 2% Debt/ EBITDA 3.8 3
Slide 9: New remuneration for electricity transmission
New remuneration for electricity transmission 9
Slide 10: New framework of reference: 24/2013 Electricity sector law
New framework of reference: 24/2013 Electricity sector law • In December, the new Spanish Electricity Law was approved. • Mechanisms have been established to prevent temporary differences between income and expenses by means of an automatic review of tolls and charges. • The p principles p and crite
Slide 11: New remuneration model: Transmission RD 1047/2013
New remuneration model: Transmission RD 1047/2013 • A single methodology applicable to all electricity transmission facilities. • 6-year regulatory periods: first regulatory period to end on 31/12/2019. • Remuneration of investment based on net value of all the assets in service. • Facilities will b
Slide 12: New regulation to ensure stability of electricity transmission
New regulation g to ensure stability y of electricity y transmission Transparent 2014 tariff ff for f Red Eléctrica é totals €1,622m € and approx. €1,685m € in stable and totals €1,622m and approx. €1,685m 2015. predictable Revenues for 2015-2019 should register a CAGR of approximately Sustainable 3
Slide 13: Next steps
Next steps p • Promote a reasonable outcome for various pending remuneration and regulatory aspects: – Establish investment and O&M benchmark unit costs. – Set average residual life of facilities prior to 1998 by verifying investment in renovation and improvements carried out on assets prior to 1998
Slide 14: 2014 Outlook
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Slide 15: 2014 Outlook
2014 Outlook ■ Tariff for Red Eléctrica: Tariff €1,622m , transmission activity; y; €56m for system y operation; and €14m for availability incentive in 2014. ■ Interconnection with France and Portugal brought into service. I Investments t t ■ Mallorca M ll –Ibiza Ibi iinterconnection. t ti ■ Investm
Slide 16: Investor relations contact
relacioninversores@ree es relacioninversores@ree.es Presentation available at: www.ree.es Shareholders & investors
Slide 17: Appendix
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Slide 18: Consolidated income statement
Consolidated income statement (in thousands of euros) 31/12/2013 31/12/2012 2013/2012 Revenue 1,758,266 1,755,256 0.2% Own work capitalised 19,647 18,995 3.4% Supply costs (67,025) (69,597) (3.7%) Other operating income 14,655 13,499 8.6% Personnel expenses (127,263) (129,148) (1.5%) Other operating
Slide 19: Consolidated balance sheet
Consolidated balance sheet Assets (in thousands of euros) 31/12/2013 31/12/2012 Intangible assets 86,693 23,359 Property, plant and equipment 8,426,782 8,265,640 Investment properties 2,561 2,604 Investments accounted for using the equity method - 4,774 Non-current financial assets 63,532 58,919 Def
Slide 20: Consolidated cash flow statement
Consolidated cahs flow statement (in thousands of euros) 31/12/2013 31/12/2012 CASH FLOWS FROM OPERATING ACTIVITIES 1,191,850 798,771 Profits before tax 733,013 680,514 Adjustments to profit 583,337 618,770 Depreciation/amortization 416,565 405,496 Other adjustments to results (net) 166,772 213,274
Slide 21: General remuneration model for transmission facilities
General remuneration model for transmission facilities ■ Net value of the investment to be remunerated = Financial audited investment value, adjusted by 50% of the difference with the benchmark unit cost of the year Return asset is commissioned. Investment ■ Financial rate of return = 10-year bond y
Slide 22: Disclaimer
This document has been produced by Red Eléctrica Corporación, Corporación S.A. S A for the sole purpose expressed therein. 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 se
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