Redeia Corporacion Sa · BME:RED
Redeia Corporacion Sa — H1 2024 Earnings Presentation
29 slides from Redeia Corporacion Sa's earnings presentation, Jul 31, 2024
Slide 1: 2024 First Half Results
redeia El valor de lo 2024 First Half Results 31 July 2024
Slide 2: Index
Index 1. Highlights. 2. 2024 First Half Results. 3. Outlook for 2024. 4. Progress on Strategic Plan 2021-2025. 5. Questions and Answers. 1H 2024 Results 31 July 2024
Slide 3: 1. Highlights
1. Highlights
Slide 4: Unprecedented opportunity as a leader in deployment and integration of renewable energy
Unprecedented opportunity as a leader in deployment and integration of renewable energy Coverage of electricity demand 60 % of generation in Spain comes from renewable from January to June 2024 energies, and 78.4 % of installed capacity comes from emission-free sources, thanks to the increase in F
Slide 5: Updated PNIEC 2023-2030 with new and more ambitious targets
Updated PNIEC 2023-2030 with new and more ambitious targets... Final document to be published soon 160 GW Renewable installed capacity 62 GW of wind capacity The transmission network will play an essential role in the energy vs 50 GW previously. transition to integrate renewables, reduce emissions
Slide 6: New Planning 2025-2030 to achieve the PNIEC objectives
... new Planning 2025-2030 to achieve the PNIEC objectives... In January, the Ministry initiated the processing of a new Electricity Planning that defines the electricity system in the medium and long term, in terms of generation, demand and electricity transmission grid. Red Eléctrica, in its r
Slide 7: Implementation of new investments is key for Spain
... in this context, the implementation of new investments is key for Spain Red Eléctrica responds and will reach the largest investment in its history in 2024 Progress in the development of international Modification of Specific Aspects of Planning 2021-2026 interconnections, new inter-island lin
Slide 8: Incorporating improvements in the new remuneration model
Incorporating improvements in the new remuneration model ... is crucial to obtaining a reasonable return on our investments Regulatory developments 1H 2024 CNMC calendar approval, which includes the modification of Circular 2/2019 to make adjustments to the methodology for calculating the financia
Slide 9: Relevant upcoming milestones for the TSO in the second half of 2024
Relevant upcoming milestones for the TSO in the second half of 2024 Estimated dates Public consultation on Public the modification Hearing for modification consultation on of the network of CNMC Circular 2/2019 financial investment limit. to establish the financial remuneration Public consultation o
Slide 10: Consolidation of our diversification businesses
Consolidation of our diversification businesses ... that support the Group's growth Redinter Consolidating our platform in Latin America to continue driving sustainable development. Reintel More fibre optic network to achieve universal connectivity. Hispasat Boosting digital transformation thr
Slide 11: 2024 First Half Results
redeia a) 2024 First Half ’ Results
Slide 12: Results in line with expectations
Results in line with expectations... Payment of the final dividend of € 0.7273 per share on 1 July, achieving € 1 per share. € 948 M € 681 M € 269 M Revenues* EBITDA Net Profit € 1,064 M in 1H23 € 789 M in 1H23 € 354 M in 1H23 € 457 M € 5,111 M € 693 M Investments Net Debt FFO € 414 M in 1H23 € 4,97
Slide 13: Impacted by the end of the regulatory useful life of pre-98 assets
... impacted by the end of the regulatory useful life of pre-98 assets... Showing growth on a like-for-like basis Excluding pre-98 effect in both years P&L (€M) 1H24 1H23 Δ€M Δ% Revenues* 948.3 1,063.9 -115.6 -10.9 € 925 M Other income and OWC** 76.2 55.2 +21.0 +38.1 Revenues +1.6 % Operational expe
Slide 14: Positive performance in the rest of the businesses
... with a positive performance in the rest of the businesses Highlighting the contribution to EBITDA from international activity EBITDA (€M) 1H24 1H23 Δ€M Δ% 1H24 EBITDA breakdown TSO 483.1 605.8 -122.7 -20.3 TSO International 61.6 54.9 +6.7 +12.2 8.7% 2.2 % Internacional Satellite 62.9 60.8 +2.1 +
Slide 15: Revenues fell 10.9% due to the impact of pre-98 assets
Revenues fell 10.9 % due to the impact of pre-98 assets, with a positive contribution from the rest of the businesses Excluding pre-98 effect, revenues grow by 1.6 % €M - 10.9 % 1,064 +1.6 % 948 7 4 5 1 925 910 154 2 1H231H23 reportedPre-98 impact 1H23 exc. TSOTSO(rest) Internatonal Satellite Satell
Slide 16: Containment of operating costs
Containment of operating costs €M ++ 4.1 4,1%% - 1.0 % 13.9 2.7 346.4 0.8 343.3 329.8 3.9 ExpensesNot comparable with income offsetting entry 1H23 Operating Chira Soria progress Projects for third Personnel expenses Rest of costs 1H24 Operating costs parties & other expenses Higher expenses with o
Slide 17: EBITDA decreases impacted by the TSO
EBITDA decreases impacted by the TSO Excluding pre-98 effect, EBITDA grows by 3.5% €M -13.7 % 789 +3.5 % 681 7 7 2 3 3 658 636 154 1H23 EBITDA Pre-98 Impact 1H23 EBITDA TSOTSO(rest) International Satellite Fibre optics Other 1H24 EBITDA 1H24 EBITDA reported exc. Pre-98 exc. Pre-98 exc. Pre-98 report
Slide 18: Net Profit performance in line with expectations
Net Profit performance in line with expectations Excluding pre-98 effect increases by 5.2 % Excluding pre-98 effect €M 252 -24.0 % 354 35 269 239 2 108 6 4 1H23 Net profit EBITDA Amortisations Net financial Corporate tax Minorities 1H24 Net profit B.Neto 1S23 exc. Pre-98 B.Neto 1S24 exc. Pre-98 1H23
Slide 19: TSO investments increase by 19%
TSO investments increase by 19 % More interconnections and storage to advance the energy transition €M Progress of strategic TSO projects 457 414 Other Progress in interconnection with France (€75M 1H24). Optical fibre Administrative Authorisation enabling civil works 421 Satellite on the Penins
Slide 20: Focus on balance sheet strength
Focus on balance sheet strength Net Debt increases by 2.7% €M Operating Cash Flow € 463 M 4,975 457 161 5,111 230 18 3.9 x 20.3 % 693 ND/EBITDA FFO/ND FY2023 FFO Change in Investments Dividends Other 1H24 'A-' working Stable outlook capital Fitch and S&P FFO increased by 9.6% due to the collection
Slide 21: Sound financial structure and comfortable liquidity position
Sound financial structure and comfortable liquidity position Strengthening our sustainable financing with a new green bond issuance, reaching 66 % of ESG-linked financing Gross debt structure Maturities €M 23% Eurobond 1,841 2.000 EIB 1.500 1,242 1,133 USPP 3% 6,152 M€ 1.000 800 772 Other long term
Slide 22: 3. Outlook for 2024
3. Outlook for 2024
Slide 23: 2024: base year for future growth
2024: base year for future growth Significant TSO investment acceleration by assuming its responsibility as the backbone of the energy transition TSO investment €M >150 % ~ 1,000 877 830 825 672 564 532 493 439 421 415 426 414 392 413 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 24: 2024 results affected by termination of pre-98 assets
2024 results affected by termination of pre-98 assets 2024 Estimated results TSO EBITDA > € 1,300 M Net Profit ~ € 500 M Termination of remuneration for pre-98 assets due to the end of their regulatory useful life (- € 307 M) and start of REVU2 Net Debt 1 ~ € 5,700 M recognition for these faciliti
Slide 25: 4. Progress on Strategic Plan 2021-2025
Progress on Strategic 4. Plan 2021-2025
Slide 26: TSO investments of €3.9 Bn following the modification of the National Transmission Plan
TSO investments of €3.9 Bn following the modification of the current National Transmission Plan Redeia's total investment of €5 Bn in the period 2021-2025 Investments 2021-2025 Progress 2021-1H24 €M TSO Telecommunications ~5,000 ~3,900 M€ ~700 M€ ~4,800 4,400 42% ~ 3,900 44% ~ 3,700 TSO 56% Internat
Slide 27: Confirming our financial targets 2021-2025
Confirming our financial targets 2021-2025 Sound financial structure and attractive shareholder remuneration Financial Efficiency 2025 Sustainable dividend policy MARGIN 1 € /share Floor 0.8 €/share EBITDA >70 % RATIO FFO/Net Debt >15 % RATIO 2021 2022 2023 2024 2025 Net Debt/EBITDA <5 x MAINTAINING
Slide 28: Valuing the essentials
redeia Valuing the essentials red eléctrica reintel hispasat redinter elewit
Slide 29: Disclaimer
This document has been prepared by Redeia Corporación, S.A. This statement must be taken into account by all those persons or (hereinafter, Redeia) for the sole purpose set forth herein. It may not, entities to whom this document is addressed, as well as by those who under any circumstances, be cons