Slide 1: Results for the first nine months of 2022
Results for the first nine months of 2022 Valuing the essentials October 2022 redeia Valuing the essentials
Slide 2: Agenda
1. Highlights. 2. Results for the first nine months 2022. 3. Our vision for 2022 and 2025 financial targets. 4. Annex Results for the first nine months of 2022. October 2022
Slide 3: Highlights
redeia Highlights 1. gnlig
Slide 4: Key figures 9M22
€ 1,555M €485 M + 9.3 % Revenue* Investments in TSO €1,484 M in 9M21 €349 M in 9M21 € 1,182 M € 4,398 M The Board of Directors approves +2.1 % EBITDA Net debt the interim dividend for 2022 of €1,158 M in 9M21 €5,648 M in 2021 € 0.2727 per share **. € 999M € 551 M FFO Net profit + 1.4 % €1,003 M in 9
Slide 5: Solid nine months results
Solid nine months results, EBITDA increased by 2.1% to €1,182m, with growth in all businesses, and Net Profit stable at €551.5m (+0.1%). Investment acceleration reaching 484.9 M€, +39%, with a +9.3% increase in TSO. Credit strength, Net Debt decreased by €1,250m (-22%) since December, thanks t
Slide 6: Regulatory context: Ukraine, REPowerEU and urgent measures
Urgent measures in response to the economic and social consequences of Ukraine situation. Need for a more interconnected Europe. REPowerEU roadmap for increasing security of supply in Europe. Council Regulation (EU) 2022/1854 of 6 October 2022 on emergency intervention to deal with high energy
Slide 7: Results for the first nine months of 2022
redeia 2 Results for the first ° nine months of 2022
Slide 8: Consolidated income statement
Increased revenues with growth in all €M 9M22 9M21 Δ M€ Δ% businesses, especially in the international Revenue* 1,554.8 1,483.5 +71.3 +4.8 and satellite businesses. Other income and OWC** 57.6 49.1 +8.5 +17.3 EBITDA mainly impacted by the deployment of specific O&M plan on critical TSO assets Op
Slide 9: Revenue evolution by business
€M Positive contribution from regulated business in Spain. Positive impact on revenues from Chile and Peru due to the 6.1 1,554.8 update of remuneration parameters and the favourable 25.6 exchange rate effect. In addition, good evolution due to the 29.7 0.3 execution of non-regulated projects fo
Slide 10: Increased operating expenses
Increased operating expenses: +€55.6 M +14.9 % 71.3 8.5 1,182.3 1,158.2 10.1 32.9 12.6 Comparable Non-comparable +€43.0M +3.4 % Cost associated with new businesses Comparable operating expenses increased by €12.6 M (+3.4 %), containing the effect of inflation thanks to the procurement policy with
Slide 11: Investments
Completion of the first phase of the Ibiza - Formentera €M interconnection, commissioning estimated for the end of 2023. Spain - Portugal North interconnection receives environmental 485 Other investments impact statement. Fiber optic Last phase of the administrative process for the Spain-Fran
Slide 12: Financial position and credit metrics
42 % 5.2 years 1.53 % ESG financing Average life Cost of debt 32 % in 9M21 5.6 years in 9M21 1.53 % in 9M21 2.9 x 26.7 % ‘A-’ Last 14 th October Fitch ND/EBITDA FFO/ND Stable outlook confirmed A- rating, and Outlook stable. 3.8 x in 9M21 21.0 % in 9M21 Fitch and S&P 84 % 100% of the debt in 2030 con
Slide 13: Cash flow and net debt
€M Operating Cash Flow 1,383 €4,398 M Net Debt Improving due to proceeds 6.000 5,648 544 from sale of 49 % of Reintel. 485 4,398 5.000 100 4.000 999 995 385 Strong cash flow generation, which 3.000 has allowed for a reduction in the 2.000 volume of financial debt. 1.000 Positive contribution fro
Slide 14: Our vision for 2022 and 2025 financial targets
redeia Our vision for 2022 SP) and financial targets in 2025
Slide 15: 2022 outlook by business
Electricity business in Spain (TSO) Satellite business Acceleration initiatives to boost Repositioning towards satellite investment in the 2021-2026 Plan. services and solutions company. More than €500 M TSO investment Estimated investments over planned for 2022. €150 M. Slight decrease in
Slide 16: 2025 financial targets
€4,400 M MARGIN 75 % for the transmission network, EBITDA 70 % international interconnections, storage and system operation RATIO FFO/DEBT >15 % RATIO NET DEBT/ EBITDA < 5x 2021-2023 2024-2025 MAINTAINING STRONG €1.0/share Floor of CREDIT RATING €0.8/share Results for the first nine months of 2022.
Slide 17: Annex
redeia Annex
Slide 18: Revenue and EBITDA by business
9M22 9M21 ΔM€ Δ% 9M22 9M21 ΔM€ Δ% TSO 1,224.3 1,214.0 +10.3 +0.8 TSO 917.2 923.0 -5.8 -0.6 International 78.8 49.1 +29.7 +60.4 International 62.2 36.8 +25.3 +68.8 Satellite 159.2 133.7 +25.6 +19.1 Satellite 109.9 101.1 +8.8 +8.7 Fibre Optic 108.0 101.9 +6.1 +5.9 Fibre Optic 81.3 80.7 +0.6 +0.8 Other
Slide 19: Strong and diversified liquidity position
€M Eurobond 3.000 2,800 3% 3% 7% Long term Bonds Long term Credits 2.500 Strong and diversified liquidity position USPP 2.000 €3,588 M 28% 59% Other 1.500 1,210 1.000 930 12% 689 521 500 16% 88% 36 Euro 0 2022 2023 2024 2025 2026 2027 Fixed rate Foreing exchange and following 84% Variable rate Resul
Slide 20: Sustainability objectives
30% reduction of Scope 1 and 2 emissions*, 2/3 of suppliers (in terms of emissions*) approved under SBTi criteria and 100% of Scope 1 emissions compensated; Integration of more than 60% renewable energy in electricity generation; Compliance with the commitment to protect vegetation and combat
Slide 21: Valuing the essentials
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Slide 22: Disclaimer
This document has been produced by Red Eléctrica Corporación, S.A. (hereinafter referred to by its trade name “Redeia”) 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 parti