Redeia Corporacion SA · BME:RED
Redeia Corporacion SA — Red Eléctrica Corporación — Investor Presentation (February 2013)
22 slides from Redeia Corporacion SA's investor presentation, Feb 27, 2013
Slide 1: ey es
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Slide 2: ey es
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Slide 3: 2012: A complex year
2012: Acomplex year = RD 13/2012: Deferral in the payment of revenues of new assets putinto operation, now in n+2. Regulation = RD 20/2012: Reduction in transmissionrevenues (€45m). = RD 2/2013: Revenues indexed to new CPI. a RD 12/2012: Removal of freedom of amortization. a RD13/ 2012: Standstill o
Slide 4: 2012: A year with significant improvements
2012: A year with significant improvements = Solidresults and strengthening of solvency ratios. Financial & a Financing allows liquidityto cover maturities in the next 2 years. Operating = Newhistorical maximum in the contribution of wind generation. Results = Mainland-Balearic Islands electricity i
Slide 5: 2012 Results: lower path of growth
2012 Results: lower path of growth | Revenues (€m) }| EBITDA (€m) Net Income (€m) 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 @)
Slide 6: 2012 Balance sheet: ratios improvements
2012 Balance sheet: ratios improvements Net Debt (€m) 4,757 4,693 4,873 7 7 | | | 2008 2009 2010 2011 2012 . Net Debt / EBITDA 4.7 3.8x 3.7x | | | 3.8x 2009 2010 2011 2012 2008 Investments* (€m) 2,309 Acquisitions 759 — | = 2008 2009 2010 2011 2012 ‘ wow wenrang lwestnent In the transi bebo grki, ao
Slide 7: ey es
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Slide 8: Key strategic initiatives
Key strategic initiatives a Aninternational TSO reference. Operating =a Improvement in the network acquired in 2010 (islands). excellence = Continuous improvement in operating efficiency. = Electrification optimum level. Market integration Hi International interconnections. elaleRSElarleliliva § 6m
Slide 9: Red Eléctrica: an international TSO reference
Red Electrica: an international TSO reference 16,0% 14.0% X * Spain Z 12,0% 10,0% 60% 60% % Wind Generation 40% “uk * Italy 2,0% * France * Germany 00% 00% 50% 10,0% 150% 20,0% International interconnection Capacity Source: EIU (Economist Intelligence Unit). 25 0% a First independent transmission co
Slide 10: Improvement in the network acquired in 2010 (islands)
| 2012 “Incident occurred dueto breakdown in substation. = Improvement in the network acquired in 2010 (islands) CC Assets acquisition in 2010 Network 99.8 99.9 998 | 98.5 98.3 = Improvement availability (% ) ° ° — plan of the 2008 2009 2010 | 2011 2012 islands assets \ since 2010. = Improvement No
Slide 11: Continuous improvement in operating efficiency
= Continuous improvement in operating efficiency O EBITDA/ Revenues (%) Gross Emlaee | | Positions / Employee 74% T4% 76 Tt: 30 30 %1 ‘iil 56 5.7 | = 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 = Higher importance of efficiency in the current environment. a Expected im
Slide 12: Electricity consumption vs. petroleum
S RED ELECTRICA CORPORACION Electricity consumption vs. petroleum New 50% 50% 49% 45% ial a France Germany italy UK Spain Lower relative level of electricity consumption in Spain ex Source: EIU (Economic Intelligence Unit). Chartfigure: electricity consumption per capita over petroleum consumption p
Slide 13: Insufficient interconnection capacity
Insufficient interconnection j (2) capaci’) [ Exchange capacity (MW) wm <5% 41,200 7,600 5% to 10% 1,200 | 1,200 © 10% to 15% 2,100 m+15% 700 Portugal 4,300 1,400 Marruecos Francia Today Ex pansion in Ex pansion > Tota! process 2017 = Interconnection: Pyrenees East (Sta.Llogaia-Baixas)-2014 = Interc
Slide 14: Islands investments: Fuerteventura
132kV Fuerteventura Palma Grid a Improvement and renovation of grid meshing. a Increase in voltage of certain lines. = Distribution support in large cities. = Connection of Mallorca-Ibiza. = Fuerteventura-Gran Canaria interconnection study. a Investments of €125-150m/year.
Slide 15: Lower level of investments in mainland, but still relevant
Ne a, - Yudesgi ‘e Dts "BB RED ELECTRICA Lower level of investments in mainland, but still relevant | land C4 = Investments focused in: o Increase security of supply. o System costs reduction. a Investment of €425-450m per annum. (18)
Slide 16: New rhythm of investment
= New rhythm of investment consistent with the lower electricity demand and generation plants: €550-600m/per annum. a 2013 -2017 Investments based on the Administrative Authorisations already available (77%). 2010-2014 2011-2015 Plan 2013-2017 Plan (pre-Islands) (post-Islands) Plan . New Investment
Slide 17: Looking for a sufficient and stable remuneration regime
Looking for a sufficient and stable remuneration regime 1,682 €m Measures toreduce tariff we deficit with an impactin REE: ; 143 = One year delayin the payment of revenues lap of new assets putinto operation, now nt2. onnet assets value 2012 Initial = Remunerationbased Le» 2012 Final 2013 for pre-20
Slide 18: Balance sheet strength: liquidity to cover 2013-2014 maturities
Balance sheet strength: liquidity to cover 2013-2014 maturities Debt breakdown Debt maturities (€m) Total Gross — Bri aa Debt USPP, 8% - = _s59—_ 67a (801 ( 53% Liquidity sources* €4,913m 2013 2014 2015 2016 2017 & next | Eurobonds emission Liquidity breakdown dae Size Marty Counon RET Eurabonds, EI
Slide 19: REE credit rating above sovereign
REE credit rating above sovereign Baa2 = Constantin A2 since 2003 until 1Q 2012. = Onenotch above sovereign. = Accordingto Moody's, Red Eléctrica = Constantin AA- since 2003 until 1Q 2012. = Onenotch above sovereign. = BBBrating underestimates FFO/Net Debt Red Eléctrica’s ratio. stand alone rating (
Slide 20: 2013-2017 Targets
2013-2017 Targets Net Income Leverage Dividend Investment CAGR ~ 6-8% <3.5x Net Debt / EBITDA Growth in line with net income (payout 65 %) €550-600m/ year
Slide 21: Sustainability indexes and awards
Re ee it c— Dow Jones Sustainability Indexes EFOM® Excellence award Prize
Slide 22: Disclaimer
This document has been produced by Red Eléctrica Corporacion, S.A. for the sole purpose expressed therein. It should notin 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
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