Redeia Corp U/Adr

We're now going to start this presentation of the results for 2024, and we'd like to welcome all of you who are following us online. And with us, we've got Beatriz Corredor, the chair of the board, Roberto Garcia Marino, who's our CEO, and Emilio Cerezo, who's the corporate economic and financial director. I now give the floor to our president. Good morning, everyone, and welcome and thank you for coming to this presentation. Yet again, we'd like to be able to share with you the most relevant milestones achieved during the past year, 2024. Talk about RDEA's performance and the earnings of the group. 2024 has been especially difficult, both for us and for our country and our whole continent. And maybe it'd be a good idea to remember that it was four years that we presented the current strategy plan focusing towards 2025. which has now arrived and so there are three things you should remember in 2024 our revenues have gone down one-third because of the regulation but our investment's gone up three-fold and we've maintained our a minus rating with the outlook stable. And that's because of setting up excellent management and deep commitment to the market of transparency and honest reporting. We'll be presenting our outlook as well for 2025. And at the end of the presentation, there'll be a Q&A. So we'll be answering any questions you wish to put to us. So let's start. going over the international context in which the company has been operating over the last year and in which we will probably continue to operate during 2025. We're at a geopolitical crossroads and recent events have shown very clearly that the age of stability and cooperation... seems to be over. In front of us, we have a scenario of uncertainty, complexity and volatility, which means that we have to get ready to adapt very fast to these new circumstances. We are seeing worrying signs of... a different kind with blocks in geopolitics that we didn't have before. And the 2024 elections in the European Union and the United States have brought in new conceptions of what the world order should look like, especially with regard to the economy, to technology, to energy, security and defense. The current scenario is very challenging. We've got geostrategic forces fighting one another, democracy versus authoritarianism, and the green agenda, and then people who wish to delay or outright delay climate change, billionaires, or else perhaps rising inequality. So what can we do? All we can do is to continue building and maintaining international cooperation and governance mechanisms. supporting multilateralism and making progress in decarbonization, whilst redefining the European Union to respond to the new paradigms without at any time compromising our welfare model. And in geopolitics, we have to talk about climate. In the nth report that came out from the World Economic Forum, later they have said that we are already meeting the circumstances which had been foreseen before. And according to the Copernicus report, last year was the warmest year on record and the first year in which we breached the 1.5 degrees Celsius limit. over pre-industrial levels. And in the past year, we've been seeing extreme weather phenomena like the World Economic Forum said we would. And we can confirm that climate change is definitely real. And we saw that last October here in Spain with the terrible storms that hit, above all Valencia. It's been one of the worst tragedies caused by the climate emergency in our country. And Redella would like to express our solidarity with the communities and people hit by this phenomenon. We'd also like to explicitly recognize the Retelectrica teams in the province of Valencia who reacted with agility to repair the transmission grid, which was severely hit. We had 35 pylons damaged and one substation was flooded. They quickly deployed provisional and then definitive solutions, and in just 100 days, 100 days, the facilities were back to normal. And despite the damage suffered, I'd like to highlight that the infrastructures never stopped providing the essential service they were built for, providing electricity. They showed their resilience and reminded us yet again of the importance of having a sufficiently meshed network for a safe and high quality supply. 2024 has also been a year in which we've seen major regulatory developments, both at European and domestic level. Within the European Union, in December, the new College of Commissioners of the European Commission was set up, including Teresa Rivera as Executive Vice President for Clean, Fair and Competitive Transition. Brussels has opened a new phase based on two fundamental pillars, its energy transition agenda and the recently announced competitiveness compass, which focuses on making the EU more competitive by strengthening its value chains and its manufacturing capacity. This compass will take the form of 30 measures, two of them being presented right now in Brussels, the Clean Industrial Pact and the Affordable Energy Action Plan. The first aims to increase the industrial competitiveness of the 27 members, amongst other things by increasing electrification and the generation of renewable power. And in Spain, we think that we've done pretty well there. The second proposes to reduce energy prices by giving a prominent role to infrastructure development, especially interconnections, as an essential tool to reduce the cost of energy, complete the internal energy market and mitigate the volatility of prices and possible price shocks. At national level, the need to accelerate the energy transition led to the approval of the specific modifications of the 21-26 planning, which prioritises the electricity demand of new large-scale industrial projects of a strategic nature. The same principles inspire the new vision for 2030, which the Ministry for Ecological Transition and Demographic Challenge launched simultaneously. so that for the first time it will overlap with the current one. And it is currently being drafted. And later on, I'd like to talk a bit more about that. saw the new update of the PINIEC, which is our National Climate and Energy Plan, with a significant increase in national energy and climate targets. And that was also the month in which the new framework for offshore wind development was consolidated with Royal Decree 962-2024. I should also mention, whilst I'm talking about regulations, there was a preliminary public consultation put out on the modification of the network investment limit launched by the Ministry. And last Friday, the Vice President Sarah Harrison confirmed that it will be extended, maintaining a balanced approach in order to contain the costs passed on to consumers. While waiting to see what this final increase is going to be, we do believe it's good news, it's necessary news and completely in line with the acceleration of the energy transition and the investment effort we are making in the company. And then on the regulatory side of things, the CNMC Council has five new members and I was able to go to the inauguration ceremony a few weeks ago And meanwhile, we are watching the processing of the draft law of the National Energy Commission here. And we think the specialisation of the new regulation to be positive, given the greater complexity of the electricity system in the coming years. But we also believe it must be accompanied by an updated vision of the criteria that should govern the remuneration of the companies that manage the networks, in our case, the electricity transmission networks. So that's where we see the next relevant milestones we're looking ahead to in 2025, when the review of the transmission remuneration model circulars for the period 26 to 31 is expected to be completed. following the conclusion of the public consultation on the financial remuneration rate and the methodology for calculating transmission remuneration launched by the CNMC, our regulator. And here I think it's also worth highlighting the Ministry's guidelines for the new financial rate in which it considers it necessary to establish appropriate signals to provide incentives for electricity transmission and distribution activities. And that's especially in order to meet the new kinds of demand we're seeing and integrate the growing renewables generation. As I already mentioned, one of the main regulatory advances of the past year was the updating of the National Climate and Energy Plan with more ambitious objectives to complete the transformation of the electricity grid by 2030. Amongst its main goals are that 81% of electricity generation should be with renewables, That would be a 32% reduction in emissions compared to 1990 and also reaching a 48% share of renewables in the final use of energy. To this end, our energy plan recognises grids and networks as enablers and proposes that of the €308 billion of investment that will need to be articulated by 2030, 17% should go to networks. In this respect, 25 to 30 planning will be our main toolbox. The process of the new planning is open already. And after the initial proposal, the technical proposal that the system operator presented the other day, when the vice president, Sarah Iason, addressed the industry at the last energy sector conference, the autonomous Regions were invited to hold trilateral meetings with Retelektrika and the Ministry to fine-tune the design of planning, always focusing on industrial demand, decarbonisation and Spain's competitiveness, responding to the new demand that's arisen, especially in industry, technology and green hydrogen, which barely existed when the current plan was drawn up and which now, as the government itself has recently acknowledged, exceeds 100 gigawatts, which is what was requested. So to give this figure its context, that's double the peak demand in Spain. And so at the same conference, the vice president called for an effort to prioritize this because, as she said, it's not possible to integrate all the requests in just four years. Thus, meeting these new consumption goals to the extent and in the manner established by the This planning will be one of the guiding principles governing the planning approved by the Council of Ministers, which will be binding for Retelectrica. And we shouldn't forget that this growing demand exists because Spain has been working already for six years now on a country project focused on achieving energy transformation and taking advantage of our enormous capacity for generating and integrating renewable power. And over this time, we've also demonstrated that we are the driving force behind renewables in the European Union. The figures proved that once again in 2024, when we set two records, the highest renewable production and also the highest share with almost 57%. And in wind? Well, wind, lead, the generation mix with more than 23% followed by solar PV, which was 17%. And 66% of the total domestic installed capacity is already renewable here. With these figures, we remain at the upper part of the ramping of the member countries of the European network of TSOs, second in renewable installed capacity and third in renewable generation. This leadership also explains why we're exporting more and more clean electricity to our neighbouring countries. 2024 was the third year running in which our balance of trade netted out in favour of exports. But going beyond just installed capacity and favourable weather conditions, Spain's leadership in renewable power is largely due to the excellence with which ResElectrica and its professionals operate the system. Thanks to the work of the engineers and professionals in our Renewable Control Centre, we're able to integrate more than 98% of the wind and solar output on the peninsula. And that means that the discharges we have due to grid restrictions remain at just 1.61%, which is the lowest ratio since 2022, despite the fact that over this time we've seen a more than 14 percentage point rise in the penetration of renewables. We're talking about levels of discharge which are much lower than the 5% established by the European regulations. And that's when the mix is up to 50%. And also, it's lower than those of other countries in the region. In this case, we're seeing how important our flexibility tools are. It's the case of the automatic power reduction system, which we call SRAP in Spanish, with which we maximize the utilization of the grid infrastructure. Since 2022, it's integrated more than 4.6 terawatt hours of renewable energy into the system. On the other hand, Spain occupies a leading position in Europe in terms of renewable power participation in the balancing markets, specifically more than 29 gigawatts capacity of wind and solar power. Finally, in these flexibility toolbox, we also have a way of balancing demand with the active demand response service. That helps us to ensure a balance between generation and demand and currently has 1,148 megawatts. 2024 has also been a key year in the development of the transmission grid. Red Electrica has made an extraordinary effort here. At the beginning of the year, we committed to reaching record investment levels with capex of over 1 billion euros. And we've delivered. The TSO has reached 1 billion 100 million, which is 34% more than in 2023. This is an unprecedented level of investment. It's a record milestone in the company's history as we triple the TSO's average investment benchmark of around 400 million euros a year. The numbers speak for themselves. They show that we are rolling out the current planning and its maps or modifications in a timely manner. It also demonstrates that our transmission grid is not a bottleneck for deploying renewable power or deploying industrial advances. In this way, in recent months, we've put into service or started up infrastructures in all the autonomous communities in Spain. These include the international interconnections with Portugal and France and those that will link very soon the mainland with Celta and Tenerife with La Gomera. We've also reinforced the mainland grid with extensions and new substations to support industry. And we see how we are helping to boost technology development ports and railways in Aragon, Valencia, Catalonia, Madrid, Extremadura, Andalusia and the rest as well. To do this, collaboration and dialogue with public administration is vital in order to attain the highest possible degree of social consensus. And outside of planning, we're also progressing on the works for the future Salto de Tira pumped storage hydroelectric power station, which is strategic for the energy future of Gran Canaria. And now I'd like to talk about one of the most relevant recent developments for the group, which was the change in our perimeter with the divestment of Hispasat, which we announced last 31st of January. It's a key operation for Relea, because with it we're consolidating our core business as a neutral manager of essential infrastructures at a time when the European satellite and satellite and the world satellite sector is positioning itself around security defence. And we feel that Hispacert has really completed its transformation into a satellite internet operator and service provider. We also strengthened the group's financial position so that we can accompany the energy transition and the major industrial development here in Spain that can be helped effectively with our infrastructures because that will be the focus of our next strategy plan the timely and efficient deployment of the transmission network infrastructures that will be included in the 25 to 30 plan and it will also allow us to continue rolling out our commitment to sustainable value creation for our shareholders, and not just our shareholders, all of our other stakeholders too. Because with this transaction, we have completed the divestment plan we set up within our strategy plan in the area of telecommunications. where we'll continue to be active through our subsidiary, Reintel. Now, with this new setup, with our new perimeter, Redella has reaffirmed its position as a neutral, independent manager of electricity and telecommunications assets through its subsidiaries, Redeléctrica, the Spanish TSO, Reintel, which is the country's largest dark fibre provider, Redintar, our electricity transmission subsidiary in Latin America, and Eloit, our technology platform. So we're continuing to meet our business objectives whilst always remaining true to our very essence, which is to leave things better than we found them, which is for us the definition of what sustainability really is. The commitment to sustainability 2030 is deployed through multi-year plans. The current one defines 14 lines of action with mid-term targets to achieve Relea's ambitions for 2030. The plan has also reached a degree of compliance of 79.9% in 2024 and our identification with sustainability is unequivocal. It continues and will continue to guide our activity and all the company's strategic decisions. In spite of the uncertainty and the international shifts in direction that we can see worldwide, Redea remains fully aligned with the European Green Agenda, now more than ever. Yesterday, our Board of Directors approved the Management Report for the Annual Accounts, which includes the Sustainability Information Statement, applying for the first time the guidelines of the Sustainable Reporting Directive, the CSRD. This hasn't been easy, just to give you an idea. It involves reporting around 900 indicators, as compared to the 96 that were mandatory until now under the Non-Financial Reporting Act here in Spain. The report has been supervised by the three board committees and will be submitted for approval to our next annual general meeting as a separate agenda item. In addition, it's subject to external verification through the professional services of EY doing an assurance report with a limited level. As you're aware, the report reflects the disclosure requirements licked to the material issues and the impacts, risks and opportunities affecting Aredea's value chain, as required by the new European Sustainability Reporting Standards, the CSRD. Given that its transposition into Spanish law has not yet been completed, the company has opted to follow the recommendations of the Spanish Securities Market Commission and the Spanish Accounting and Auditing Institute. We are also waiting for the first Omnibus Simplification Package on sustainability, which the European Commission is expected to adopt today. and which could include amendments to the Sustainable Reporting Directive and to the Sustainability Due Diligence Directive and the taxonomy regulations, as well as a second omnibus package on investment simplification. Consequently, our commitment to sustainability and transparency with our stakeholders is reflected in Bredea's presence on the main sustainability indices worldwide. We've revalidated our presence on the Dow Jones Sustainability Index Europe and also on the DJSI World with a score of 85 out of 100. That meant Bredea was placed among the top most sustainable companies in the European and global rating for the sector. And not only in this index, also the MSCI and the FTSE for good, among others. and in february the sustainability yearbook 2025 considers releya to be one of the most sustainable companies in the world placing it up there amongst the top five of the global ranking and in the board and all the different parts of the company we are delighted to have the hard work that's been done by all of us recognized in this way in 2024 We also began to maximise the full power of our integrated impact strategy, the framework for action that engages all business areas and geographies. to ensure that we deploy our infrastructure in line with our sustainable commitment and to contribute to competitive social transformation, the fight against climate change and the improvement of society and the environment and all the communities where we operate. We develop our networks with the consensus of the locals, of the communities that live there, respecting their landscape, their biodiversity, their historical, archaeological and cultural heritage, and their way of life and their customs. We always seek a positive impact on their lives. With this strategy, we've already, in just two years, promoted more than 130 environmental and social initiatives linked to our investment projects. Of particular relevance last year was the Marine Forest Platform, which promotes strategic alliances for the restoration and conservation of our marine ecosystems. and the Networks for Renewables project, which involves the development of a methodology for approaching the territory, hand in hand with the NGO Fundación Renovables, with the participation of the Renewables Grid Initiative, the RGI. In the area in which our infrastructures are deployed, we've focused our actions mainly on promoting the energy transition, bringing its direct benefits to those who live with the facilities. In total, we've allocated more than 9 million euros to the strategy's initiatives, generating a total estimated impact of just over 85 million euros. And we've developed a reporting tool for these initiatives to facilitate decision-making and project monitoring. We also do this because evidence and measurement are the best response to greenwashing, people posturing as eco-warriors and fighting for society when it's not so clear that they are, which we are seeing in some areas. For the same reasons, and for the second year running, we've carried out the voluntary transparency exercise of measuring the impact and contribution of our activity to the environment, which reveals that... For every euro of net profit we make, we contribute 13.15 euros to society. So to wrap up the first part of my presentation, I'd like to put across a take-home message, which is that we've overcome a year that was expected to be critical by reaching an unprecedented level of investment in Mareta Eléctrica. We've practically tripled investment in just five years, and we've achieved this in a year marked by the impact of the end of the useful life of the assets that we know as the pre-'98 assets. and recently by the rotation of assets in the satellite business. Excluding these two effects, EBITDA and the income from continuing operations would have increased by 7.8% and 6.5% respectively, thanks to the large volume of networking commissioning that we did last year. Net profit reached €368.4 million. But without the impact of the Hispasat sale, the group would have exceeded a profit of €500 million, in line with its original forecast. as the market already knows. We've faced a sharp fall in revenues, whilst tripling our investment effort, which reflects the model of management excellence that guides the company's activity, which our CEO, Roberto García Merino, will now develop on further. And we'll continue to work towards 2025 with our sites set on successfully concluding our strategy plan in a year that's very special for the entire group as it's the 40th anniversary of Retelectrica. We've been operating for 40 years at the service of the country, 40 years making the economic, industrial and social development of Spain possible based on our commitment to sustainability and the general interest and our vocation for public service. Thank you very much, Roberto.

Thank you very much and thank you, Madam Chair. Since this is our first communication after the agreement reached with Intra for the sale of Rodea's stake in Hispasat, we would like to provide some extra information on the deal and the way it strategically fits in our plans. As you know, on January 31st, the company's board agreed selling nearly 90% stake in Hispasat for €725 million, which or an EV EBITDA multiple of 7.7 times considering the numbers of 2024, well above the multiple at which companies and the industry are listing. The closing of this deal, subject to various conditions, is expected to take place later this year. The deal involves acknowledging a deficit for approximately $137 million after taxes, which matches the difference between the book value of net assets from the satellite business as per our consolidated financial statements and the sale price. With this deal, we conclude the strategy we defined for our telecom business in the 21 to 25 strategy plan. During this period, 49% of reintel was sold in 2022, and along with the Hespasat divestment, has led to joint capital gains of approximately 800 million euros in both transactions. The rotation of assets in the telecom business towards a simplification of the group allows us to focus on Radea's regulated business, which now stands for almost 90% of the group's EBITDA. It is important to highlight that this transaction will affect the way we present our 2024 financial statements, as a reclassification of different items in Hispacet's income statements attributable to Rodea will be included under a single line called Profit for the Period from Discontinued Operations. or profit for the tax year. This includes a difference between the book value and the sale price of our stake, as I mentioned a minute ago. In the balance sheet, there is a reclassification into a new account called Assets and Liabilities Held for Sale. The deal will also involve a net debt reduction for 2025 when we will receive the cash flow in connection with the sale. which will lead in turn to a stronger financial solvency for the group and an improved business profile that will allow us to reinforce our financial capabilities for our next strategy plan. Having analyzed the Hizb-e Sa'at deal, we will now discuss other highlights and detailed results for 2024. 2024 was a key year, a milestone, I would say, in the development of TSO activity, with investments exceeding 1.1 billion euros. That's 34% higher than investments in 2023, which at the time meant a significant increase compared to previous years. In addition, we can be proud of the high levels of grid quality, which, as you know, is assessed on the basis of availability of facilities, which, in turn, reached levels over 98% in 2024, also integrating levels of renewable generation into the system with figures that were never recorded before. Plus, other highlights of this tax year include public consultations on the financial remuneration rate and the methodology for calculating transmission remuneration launched by the CNMC in a context in which the need for investments is at its peak and in a very competitive and complex environment which suggests a global framework encouraging the deployment of networks with adequate remuneration. The resolution through which the CNMC awarded 200 million euros to finance the investment of the interconnection with France via the Bay of Biscay, corresponding to expenses. until December 2023 has already been awarded, and the new remuneration by the system operator was established at 86 million euros, or 4% more than in the previous financial year. And last, the publishing of the schedule for regulatory circulars is scheduled to start in 2025. If we now focus on figures published in 2024, the first message is that these numbers are in line with our announced estimates, excluding the effect of the Hispasat sale. EBITDA, reaching 1.21 billion euros, would exceed the 1.3 billion mentioned a year ago with the inclusion in the Hispasat perimeter, and net profit would have exceeded 1%. half a billion euros without the capital loss associated to the sale of Hispasat, as we committed to. Taking these effects into account, and after reclassifying Hispasat-related items, we can observe an account affected in all its items by the end of the useful life of what we call pre-'98 assets, with an impact of 260 million euros before taxes. However, on a like-for-like basis, we do see growth in the main lines of revenue, EBITDA, and profit from continuing operations, which gives us a better understanding on the fiscal year or tax year, isolating extraordinary items. Looking at the evolution of revenues in detail, these went down by 12.4% affected by the pre-'98 effect. Without this effect, revenues grow constantly by 1.7% throughout the year. On the side of international business, we can highlight higher revenues in Peru partially offset by lower income in Brazil affected by the exchange rate. As for the fiber optics business, there is a lower contribution coming from the renegotiation of some contracts in the past few months in a more demanding market context. If we now focus on the evolution of operating expenses, these go down by 2.3% vis-à-vis the previous year. However, excluding expenses that have a counterpart in other operating income, these operating expenses actually fall by 8.7%. The first thing we observe is higher expenses with a counterpart and other operating income like Salto de Chira due to faster progress of the works as well as other projects from third parties. Other supplies and OPEX are reduced by 61 million, mainly due to the end of the extraordinary action planned for certain TSO assets in 2023, partially compensated by higher expenses in European projects by the system operator. Staff costs went up by $3 million due to a higher average headcount, which is required to meet the challenges coming from the growth of groups' regulated assets, offset by the non-recurring effect of new collective bargaining agreements that took place in 2023. After a detailed view of operating income and expenses, the evolution of both items leads to an EBITDA that is reduced 12.4% vis-à-vis the previous year. However, removing the effect of pre-'98 FX, EBITDA would show a significant improvement of 7.8% thanks to higher operating assets and the reduction of TSO costs. The international business is affected by higher non-recurring costs in Chile, while the evolution of fiber optics EBITDA is conditioned by those lower revenues and OPEX similar to those during the previous year. This brings us to a net profit of €368 million throughout the year, affected both by pre-1998 assets and the capital losses from the Hispasat sale, which amounted to €137 million. To reach this benchmark, we see that depreciation, amortization and others recorded an increase due to the new assets in operation. At the same time, the financial result worsened slightly, mainly to the higher cost of debt, which has gone from 2.1% in 2023 to 2.27% at the end of 2024, and also affected by higher average balances from debt, partially compensated by higher financial income coming from the efficient financial management of the placement of existing liquidity. Corporate income tax goes down due to lower BBT and minority interests are reduced by 10 million euros due to the impact of the Hispasat sale on this item. The result from discontinued operations therefore shows a change in performance between 2024 and 2023 in the satellite business. Considering the evolution of our income statement, which is highly conditioned by extraordinary effects this year, one of the highlights is groups' investments, particularly those of the TSO. In this sense, group investments reach $1.17 billion during the year, out of which $1.10 are investments in the TSO. Therefore, as we said... exceeding the previous year investment by 34%. It is also worth of notice that 95% of our investments are eligible under the European taxonomy. Furthermore, this volume of investment in TSO does exceed our initial estimate for 2024 set at 1 billion, maintaining the trend observed in recent years, thanks to the company's ongoing efforts to move ahead in executing the infrastructure plan. As for progress and TSO strategy projects, we can highlight the following. First, the interconnection with France through the Bay of Biscay with the goal of reaching the milestone of commissioning in 2027, or interconnections between mainland Balearic Islands and the mainland in Ceuta, or the new Galicia-Portugal interconnection, which will allow us to increase our exchange capacity with the neighboring country. Besides, the progress in storage in the Canary Islands with the advancement of certain construction milestones and the hydraulic pipeline in the Salto de Chira project. And another highlight is the control system applications and integration of renewables linked to the system operation. As for the balance sheet, net financial debt at the end of year stands at 5.37 million euros. That's 395 million above 2023. The operating cash flow generated during the year exceeded 950 million. mostly due to the following considerations. First, the generation of cash flow from operations of 1.18 million euros, including the connection of the income tax refund from 2022, which stood at 193 million, mainly from the capital gain from the reintel sale. There was also an increase in working capital with an outflow of €232 million as a result of the repayment of excess tariffs collected in previous years for a total of €183 million. The outstanding amount at the end of 24 for this item reaches €220 million and is expected to be repaid in oncoming months. Additionally, $200 million from congestion rents destined to finance the investment and the interconnection with France coming from investments made until late 2023. Considering all of the above and the investments made throughout the year plus the payment of dividends, the net financial debt goes up by 7.9%, showing solid financial ratios and maintaining a credit rating of A- by Standard & Poor's and Fitch. As for our financial debt, it is worth highlighting its diversification in terms of sources of financing, with now 92% at fixed rate until maturity and a clear predominance of euros over other currencies. Thanks to this structure, we have maintained a competitive average cost of debt that presently stands at 2.27%. In the next few years, we will be facing maturities of approximately 3.8 billion euros, largely covered by our strong liquidity position, which will be reinforced after closing the Hispasat sale. And last, I would like to highlight the efforts that the company continues to make in terms of sustainability by financing green projects contributing to energy transition 100% aligned with the European taxonomy. In terms of funding and throughout the year, two milestones were achieved. First, the issuance of a green bond for 500 million euro bond with a yield of 3.07% in January 2024. And also the first issue of a senior green bond by Rodea Corporation issued in June last year for another half billion with a maturity in eight years and a yield of 3.46%. We also continue to benefit from the support of the European Investment Bank, which enabled us to strengthen our financial position to carry the relevant investment plan we devised. Additionally, our ESG-linked financing continues to increase, now standing at 69% of the total, bringing us ever closer to our commitment of 100% sustainable financing by 2030. And finally, it is also worth of notice that our institutional shareholders position as ESG, reaches 48% of investors who consider themselves socially responsible. Having analyzed the end of 2024 financial year, which was a very particular year in terms of performance and a very exciting one in terms of strategy plan, we now turn to the future and the way we estimate the company's performance will be during 2025. In terms of TSO investment, we will close 2024 exceeding the $1.1 billion we promised, focusing on projects that will allow us to define a robust, interconnected and digitalized network. We now face 2025 with the same positive attitude, and we estimate to more than triple the pace of investment compared to the beginning of our strategy plan, reaching investment levels exceeding $1.4 billion for this year, which will bring us above $4.2 billion cumulative investment between 2021 and 2025, which is well above the target we had initially set for ourselves. We are thus fulfilling our responsibility once more as the backbone of the energy transition, and we can assure that investment will remain at high levels for the next few years. And to conclude, we finish this presentation with the outlook for 2025 in line with our strategic objectives, offering attractive shareholder remuneration and maintaining a solid financial structure. If 2024 was a year earmarked by the end of the useful life of pre-98 assets, 2025 will once more be a record year for investment marked by the simplification of the group and greater focus on our core network business. Our investment efforts allow us to envisage an estimated EBITDA exceeding 1.25 million euros and net profit above half a billion euros for 2025. Net debt is likely to increase mainly due to the high volume of investments planned for 2025. However, this increase will be offset by the collection of the 725 million coming from the Hispasat sale, therefore leading to an estimate of approximately 5.7 billion by the end of 2025. We therefore closed 2024, a very special year due to the effect of pre-'98 assets, which was known to us since 2013, and we start 2025 fully focused on the future, considering a group geared towards the deployment of transmission networks with a more solid balance after selling Hispasat to face the... see the growth resulting from our new planning that we will also maintain this year. Thank you very much for your attention and we stand by for your questions. Ladies and gentlemen. The question and answer period is now open. If you wish to ask a question, please press star 1 in your phone keyboard. To cancel your question, please press star 2. First, we take questions in Spanish, and then we take questions in English. Our first question comes from Fernando Garcia from RBC. Fernando, please go ahead. Good morning. Thank you for taking my question. Good morning and thank you for taking our questions and thanks for the presentation too. I have two questions about your guidance. The first one is about CAPEX. You announced a CAPEX hire. that announced in the past exceeding 1.2 billion for 2025. So my question about that is, is this 1.4 billion capex you're announcing to be expected for further years as well? And beyond that, well, obviously, we will have to wait for the plan to be published, but Do you have any hints about the planned calendar and when it will be issued? And then my second question is about net profit. You're guiding over half a billion for 2025, and considering that your numbers for 24, excluding Hizb-Assad, was approximately 505 million, and considering growth from new assets and the potential impact of N plus 2, under the new remuneration or payout plan, couldn't we be talking about a much higher guidance than half a billion? Those are the two questions I have for you. Thank you.

Thank you very much for your questions. And first of all, regarding the reference you make of the 1.4 billion figure, well, obviously that is a pretty big effort that has to be made by the company to get this level. But I can also say that... We're sure that the volume of CapEx will require further preliminary approval. So it's a benchmark that is valid, but despite its ambitiousness for 2025 and as for the future, well, we'll have to wait and see what comes out with the new planning. I think that the declarations made by the third vice president recently would lead us to expect that we might be hearing more details over the next few months, I'd say. But it's true that the time horizon, we don't know the full scope yet, but we'd expect to be looking at quite high levels. Higher than this figure? Well, sincerely speaking, we don't know. But we reckoned that capex will be reasonably high. And I'd like to put over the message that Redella, Red Electrica, is doing what it has to do. It's doing the groundwork to ensure supply everywhere whilst rolling out that investment. And internally as well, we're also getting the facilities we need to take on board higher levels of But for the moment, I can't give you a clear benchmark for the future because we don't have that kind of visibility regarding the planning. But yes, given the messages that are out there and the initiatives being taken to increase the threshold on the limit on investment or perhaps even getting rid of any capital, we would expect that investment could be even above that reference figure. And then you ask about net profit. Well, that is a benchmark for 2025. And if you know us, and I think you do, you know that we always look ahead in a reasonably conservative manner for 2025. Our profit will be affected by the review that's done in the regulatory processes. And we've taken quite conservative assumptions for including that in our estimates. It's true that 2024 was affected by an item of financial revenues that we won't get in 2025. So those kinds of impacts would explain why that 500 million figure has been set aside. and it might look as though it's quite conservative, and it would seem to be possibly low, but it depends on what happens in regulation, and we'll have to see what kind of levels, but we wouldn't expect to get last year's levels in 2025. The next question then comes from Javier Suarez from Mediobanca. Javier, go ahead. Yes, hello. Good morning, everyone. I also had two or three questions. The first has to do with what's already been asked by Fernando about the CapEx on page 34, where you talk about figures of 1.4 billion euros. Now, this figure, is it gross or is it net? I mean, what I'm interested in is to see whether this figure does include that might be recovered, financially speaking, through European funding, which wouldn't then feed into the regulatory amounts reported. Can you give us an idea about that? What kind of CAPEX are you expecting in 2025 in CAPEX, which will then feed into your bottom line? Now, that's my first question. The second one has to do... with the more philosophical side of the financial structure of the company after selling off Hispasat. What kind of ratios will you have? Above all your credit rating, which you talked about, you said that 90% of the business is now regulated business, but I wonder how much will that impact your conversations with the rating agencies? Would you expect them to notch down their requirements to maintain the rating that you currently have? And what kind of structure would be the optimum capital structure for you? Do you have any credit rating that you absolutely have to maintain or do you feel quite comfortable with what you've got? And do you think with the regulatory changes, your rating could perhaps... be impacted by bringing down the requirements. So with the sale of Hispacet and with the change in the regulations, what kind of impact do we expect to see on your financial position? And then another thing which is also conceptual, why does the government or the ministry want to delay the approval of the National Infrastructure Plan? Does that have anything to do or do you think it has anything to do with a government that's maybe thinking there'll be a bigger growth in demand than initially expected, which would mean that their calculations would have to be done especially carefully? And so what we're seeing perhaps is a review or a delay in the approval of the plan because the investment is going to have to be bigger than initially expected. Do you think that's the correct interpretation? Thank you.

Okay, thank you, Javier. So if it's okay, I'll give you an outline on the first and the second question, and then I can hand it over to Emilio for an analysis of our financial structure. So about CapEx, as you asked, $1.4 million, that's a gross investment. that we mentioned. We have European funds authorized for $931 million that will affect commissionings in 2024, 2025 and 2026. Honestly, with the volume of investment we expect to tackle in the next few years, those funds will be more than welcome. Obviously, When it comes to acknowledging the attributable assets foundation, the remuneration will stay put. Consider that out of that investment we will be making in 2025, approximately $400 million will be subsidized by these PRTR funds, although we will physically receive those funds during 2026 and 2027. about the Hizb-Assad sale. We will discuss that in further detail, but before we go into that, I wanted to convey a global message about that deal in strategy terms, which will affect the risk of perception of the group. I am convinced that the Hizb-Assad deal is positive for all three companies involved. particularly for REDEA. I believe it clearly sets our objective and our priority, which is having all immediate possible to enhance our regulated activity presence in Spain. The investment horizon, which is not complete yet, will be high. And I believe that by the HISPASAT sale, beyond our focus and financial terms at least will trigger three positive effects. Collecting the price we agreed, which according to our intuition will be closed in late Q3 this year, perhaps early fourth quarter, that would be a first driver. And then obviously Hispacet will need a reasonably high investment level to meet their stake in the European project and the renewal of certain satellite projects. capabilities that are contemplated in their plan and which will not have to be dealt with in our new strategy plan within RIDEA. And as you said, it brings the risk profile for the group down. So obviously that generates a stronger cash balance and we will also need to work with rating agencies to help them understand that we're more solid in terms of financial ratios and lower risk now. In an expected scenario with a better regulatory and remuneration scenario, we believe that rating agencies will have visibility on these factors and will lower their demands on financial ratios. I'm convinced they will. I would say it was a very positive deal and makes us stronger. considering the plan we will have to tackle very soon. Any extra flavor on that, Emilio? Yes, thank you, Javier, for that. Yes, to round up your comments, Roberto, certainly selling Hespasat is positive from a credit perspective, positive for the group. Just in Treasury terms and financial debt terms, the sale will bring in approximately one billion lower financial debt, net financial debt. less than we would have without that sale. We're collecting $775 million plus the HESPA-SAT net financial debt at the end of the year, considering the potential investments will round up to that lower $1 billion in net financial debt. And also, as Roberto was saying, in terms of credit rating, the telecom business and the satellite business is riskier than the traditional core business for Redella. So according to our conversations and memos from rating agencies, the transaction is positive for us and for our credit rating. So in the next few months, we can expect easier conditions of FFO versus debt, considering that our group risk has been reduced. Nonetheless, the reassessment of those credit ratios is done by rating agencies after gaining visibility on the new regulation, Red Electrica of Spain, will be subject to. Also, Javier, about planning, the plan, as you said, we are working on the present plan, which is ambitious enough, and we're executing it swiftly, I would say. Actually, last year we had an absolute record of authorizations which is clearly reflected in our position. By next year, 75% of that plan will have been rolled out, plus the changes in very specific aspects. So the new plan that is about to be published will lead to a new strategy plan. We already have a draft for that plan to face the investments ahead. But right now, investments are very demanding, and our board of directors are making early decisions in terms of provisions required. And our departments are working on the ground to reach consensus and prepare for required authorizations. The 2025-2030 planning is very special because it changes the general philosophy. Until now, it was based on massive integration of renewables, whereas now the new plan, at least the new plan we expect, includes very relevant new features, which include the a redrafting of demand, we're considering a requested demand that greatly exceeds the previous plan and 100 gigawatts that need to be given priority, where the heavy territorial component involving the technical capacity of the network to absorb that extra demand, including all the renewables in the national plan, while maintaining supply intact. So it's a new challenge integrating this new demand, which is a change in the paradigm. So the minute the new plan is published, or at least the draft for the new plan is published, we will meet with the different regions, as we did during the preparation stage, to determine their priorities and therefore do our best to update our investments. But until the plan is published and approved, we cannot request further authorization. So we will continue commissioning and executing and preparing ourselves for the new plan. So the answer to your question is that the new plan is more complex and involves much higher demand, reaching up to 41 percent of all applications for new connections during the new network deployment. Next question comes from Fernando Lafuente from Alhambra. Please go ahead, Fernando. Hello and good morning. Thank you for the presentation. I come with two questions. The first one, the million-dollar question, you're saying you're making conservative assumptions for your guidance, but I would like to hear your opinion about a reasonable return can be placed, basically considering the messages issued by Enagas in their own earnings report last week. And then the second question is about your asset portfolio. I mean, now that you sold Hispasat, Are you contemplating any non-core assets that you might sell, I don't know, maybe in Latin America? Anything about that? Have you found your perfect asset basket or are you considering something else? Thank you.

Thank you, Fernanda, for that question. And yes, what are we expecting? from the review of the TRF for the financial return on regulated assets and obviously the grid is needed and so they have to accelerate the rollout of the grid infrastructures. Now that's complex and we have to make sure we're always competitive when raising funds for our projects and we understand that the reasonable way of going about this is to have a minimum benchmark of about seven percent that seven percent benchmark which several companies in the business are considering to be valid at the moment and from then on it's up to the regulator to assess the coherence with the energy policy of the government and what we have to do in getting the infrastructure ready for all of the business. But we've talked about this a lot in our guidance for 2025. We think the benchmarks would be more conservative. But given the environment and the changes in regulation and what we have to do, we think that that is a benchmark of about 7% minimum, which is what should be taken into account by the regulator. And then you ask about asset rotation. Well, we talked about in the presentation with the sale of Hispasat, we've pretty well completed that part of our strategy plan. It's true that the financial situation of the group right now is excellent. We're in a privileged position to deal with the capex required for the next few years. And you may remember we started with a sound A- rating. We got European funds and will continue to do so to fund our growth. And we'll see an increase in the operating cash flow, which will be pretty important over the next few years. Our capacity... We have to boost finance through hybrid instrument issuance is quite important. So we've got enough drivers to take on board whatever might come. Obviously, we're not contemplating any upgrades. other ways of financing this growth by issuing further capital or anything like that. But we do have a lot of drivers available to us to grow. So we're not thinking that we need to rotate any of the rest of the assets we have. We say 90% of our activity is now regulated. We're also including international activity and the returns there are obviously higher than what we obtain in Spain. but in the regulatory environment, which is pretty stable and secure. So right now, we've got sufficient drivers to not have to think of any further divestment. The next question comes from Manuel Palomo from BNP. Manuel, go ahead. Hello. Good morning. Many thanks for the presentation and for answering the questions. My first question is a follow-up on the answer you gave just now about that 7% minimum. Is that for the financial return exclusively or is it 7% as a minimum for everything, including the impacts of possible efficiencies you might get in OPEX or CAPEX? So that would be my first question. And then the second question would be, and this in a way is linked to what you've just said in your answer, Your capex would seem to be way higher than we'd expected, more than 1.4 billion for 2025. And from what I've been able to understand, that might be a benchmark for a run rate over the next few years for your capex. How can you finance this? Do you really think that with your free cash flow, It will be sufficient. You'll be generating enough free cash flow. I think the market is quite concerned about that. Are you thinking of using other assets? And then the other question I have has to do with your investment. Some of the utilities or probably the majority of them think that the national energy plan recently approved is perhaps too optimistic. So I'd like to ask, to what degree do ResElectrica's investments depend on achieving the targets of the National Energy Plan? And then finally, and this is conceptual, but I think as a system operator, your opinion is more than valid. It's about the closure of nuclear power stations. What's your opinion about decommissioning nuclear power, both in terms of supply security? I think that's vital for you, isn't it? Thank you.

Thank you, Manuel. So let me give you some visibility on your first and second question, and I'll leave it to Emilio to deal with the way that investment volume will be financed. Okay, so about the regulator scheme we expect this year, obviously, TRF is one, or the FRR is one of the main elements to consider, but the model affecting the transportation or transfer activity has other components that need to be reviewed during the year. When we mentioned 7%, we're talking about... the minimum affecting financial remuneration. But the model that applies to us right now does not include remuneration on current works. It's not indexed to inflation. We're working with single reference values that have been valid for a decade. So we do expect that during the revision period by the regulator, changes will be applied and we're grateful to the regulator for listening to us and being open to hearing about new initiatives. And since we want to converge to similar regulatory frameworks in Europe, we aim to see a review of unit reference values after the price increase we've witnessed in the past few years and the huge demand for power transportation and distribution networks that we will have to deal with in the next few years. So considering the global picture, we do expect a reasonably better environment than the present one, including a better FRR and other main parameters to be entered into the model. So that's the global picture. That's an overview. As for how we will finance this investment horizon, without visibility on the plan yet, we can guess that this $1.4 billion is manageable for the next few years. And at the risk of repeating myself, I will say that we have plenty of financing alternatives. And in no case are we considering a capital increase at all, within reasonable circumstances, of course. We do have several layers of possible decisions before going into asset divestment. Some of these options are profitable and already considered before we even consider a capital increase. So we're relatively confident there. Anything you would like to add, Amelia? Yes, we have several drivers that will allow us to duly finance the demanding CapEx coming upon us in the next few years. And as you said yourself, Manuel, CapEx are likely to increase after the impact of this new FRR. We don't know how much it will amount to, but it will be higher than now, plus the volume of support and subsidies. We will get subsidies for all items exceeding 1.5 billion euros that will significantly support our investments and will help us reinforce our capital structure. At the same time, we can also issue hybrid financial papers. We already issued the first hybrid for half a billion euros, and with our balance sheet capabilities, now we are able to issue approximately 1.3 billion euros on top of the $300 million we already have. And as we continue to invest in the next few years, and as our balance sheet grows, this capability to issue hybrid papers will grow as well. These are slightly more expensive instruments, but to reinforce our capital and our credit rating, we will consider that driver. from now on. So those are three different layers to reinforce our balance sheet plus access to different funding sources. I would like to highlight the support we were offered by the European Investment Bank to finance flagship projects like Cirasoria or the interconnection with France at very competitive prices. plus other sources of funding like issuing funds or bank loans. So as Roberto was saying, considering the analysis and the assumptions we've made so far, we are rolling out a capital increase, and we have several instruments to help us fund our capital investments in our coming years. Yes, about your last two questions. In our energy integrated plan, we have drawn a roadmap and the toolbox that would make this deployment possible will be the plan. So far, we have always delivered when called upon, so our plan is binding. Distributing agencies plan is not. So our responsibility is to our network and we stand by it. until the end. Actually, if we look at the renewable energy numbers that are already in service or with access applications, everything seems to indicate that we will actually meet the PNIC requirements. About nuclear shutdowns, we're a key operator and our reason for existing is supply security and maintenance. So shutdowns are a request of the ministry, and the ministry will consider whether or not each step of the nuclear shutdown path will maintain supply and supply security. And that's where we stand in that process. Thank you. Next question from Ignacio Dominic from Tratadeg Capital. Ignacio, go ahead, please. Hello, and good afternoon, and thank you for the presentation and for taking our questions. My first question is a follow-up on your investments of 1.4 billion. You said that approximately 0.4 billion will come from subsidies, right? So I wanted to understand the timing for those $931 million. Where does that strike you during 24, 25, and 26, or does it extend until 27? Also, beyond those $931 million, I understand there are other subsidies for interconnections, right? Can you provide some more detail about that? That's the first question. And the second one is about the strategy update, your strategy update. Do you expect to introduce an update soon around Q2 this year or something in connection with a regulation update? And also, could you please provide a hint on where you intend to go with your investment levels in the next few years in terms of better payout scenarios? What payout scenarios is your company considering? If you can provide those, thank you.

European funds, well there. Let's see if we can clarify things. We've got approval for a subsidy of €931 million for commissioning projects from 2024 to 2025 and before the end of June 2026. So with the volume of commissioning that we have got in our planning, For these years, we've estimated that the subsidy can be distributed 300 million, financing some of the commissioning that we already did in 2024, 400 million euros. subsidising part of the projects for commissioning in 2025, and then all the rest in 2026 projects. The thing is, with the process, it has to go through the administration in order to draw down the subsidiaries. So they won't actually be there as cash in Meredea's books until 2026. And in 2026 and 2027 is when they'll be on our accounts. That's the effect of the economic flows, really. And we have to net things out. to see what the draft is, commissioned in 24, 25 and half of 26, additionally. And it's absolutely correct what you said. We've also got additional subsidies for financing the interconnection project with France over the Berbisco. The project, as you know, was for more than 200 million in its initial subsidy from European funds, but there's also additional funding that could come for over 400 million from the congestion fees, which we've received 200 million of already. So that means that that's the total volume that Amelia was saying of that 1.5 in funds that we could get from Europe. And that means we'll be welcoming them. They'll be very welcome. And then the plan. Well, the future strategy plan? will depend a lot on the remuneration parameters set and what comes out of the planning process. But from what we've seen so far, although we don't have any certainty about it, we think that we can be sure that in the second quarter of this year, we'll have more visibility about the TRF from the first planning draft and the initial remuneration we'll get in the models that we have and the FFR, then that will mean that until summer, we won't be able to complete the full strategy plan with all the parameters with any certainty. As for the future plan, it's obviously going to show significant growth in the company's wrap. And when we look at that, it's going to be quite upbeat regarding what we'll be able to do. As for dividends, well, we'll have to have all the input we require to have a full picture of what we can do. But definitely one of our priorities in Rodea is to share the value that we make with our shareholders and our payout policy will be a fundamental part of our strategy plan as we firm it up in the future. The next question comes from Jorge Alonso from Bernstein. Jorge, go ahead, please. Thank you very much. Good morning. My questions have to do with what you just said. about the subsidies and your capex. Could you give us some figures on what you're commissioning so we can do our estimates and see what kind of influence this will have on your earnings in 2024? How much did you commission? How much will be commissioned in 2025? And if you have an idea about 2026 and give us an estimate figure, that would be fantastic. In this context, could you also give us a figure of how your work in progress is going to look at You've got the year-end figures for 2024, so we know what you've already invested and how much of that is work in progress. And it has an impact on debt, but not on the RAB or the EBITDA. And then could you give us an idea about what you're expecting for the cost of debt over the next few years? Thank you.

Thank you for your questions, Jorge. So we'll give you a joint reply, Emilio and myself, about commissioning. As we said during the presentation, for this year, 2025, we estimate a gross commissioning value of 1.1 billion that will be netted for the 0.4 billion we discussed from European funds. As for the next few years, well, whatever we do will depend on the new national plan, but allow me to remind you that in 2027 and 2028, very relevant projects will come up. We're talking about storage in Salto de Chira and the interconnection with France, which will come about in 2027 and 2028. And at that point, we will have a relevant commissioning impact in terms of operational cash flow, considering the perspectives for years 28 and 29. So at that point, we do expect to have significant progress. and in terms of ongoing works which were already singling out because a work in progress from Salto de Chira is already remunerated at the FRR as approved by the Ministry for Energy Transition and that involves approximately 280 million of current works remunerated for the Cheetah project and about $2.5 billion for ongoing works for other transmission assets that are not remunerated so far but will be under the new regulation framework, or at least we expect so. So those are thresholds. I'll leave financing to Emilio. Yes, of course, the financial cost of debt ended at an average of 2.27% at the end of 24, as we wrote in the presentation. And as we said, 90% of that debt is fixed rate. But obviously, as debt maturities arrive and new fundings are faced, that number will gradually shrink. We expect to have a financial cost of around 2.4% at the end of the year. And we understand there will be a progressive increase in later years. This will obviously have a certain impact on the financial expenses of this year, which, according to the effect of this slight interest rate increase, might go up by 10 million euros and another 10 million due to the growth in debt volume. And as Alberto was saying, we will have lower financial income in 2025 than we did in 2024 because there will be less Treasury available. Thank you. No further questions in Spanish. We will now take questions in English.

Thank you. As a reminder, please press star one if you'd like to ask a question. First question is from Arthur Sitbon at Morgan Stanley. Please go ahead.

Hello, thank you very much for taking my question. The first one is on the Q4 results. I've noticed that there was quite strong EBITDA in Spanish transmission in the Q4 compared to last year and the other quarters. I was wondering if there was any positive one-off in there or any negative one-off in Q4 last year or anything that we should have in mind or if it's a sustainable pace of EBITDA generation in that part. And a similar question as well in the Associates and JV line in the equity income. I think Q4 was actually quite the opposite, was quite weak. And I read about a non-recurring impact from Chile. I was wondering if you could quantify that and if you could say if that would normalize entirely in 2025. The second question is on the net debt. So you talk about 5.7 billion of net debt in 2025. I just wanted to make it clear basically on the subsidies. contributing to reduce that debt. I think you got 200 million in 2024. Basically, what you're saying is that you will get zero in 2025 and all the rest of the 1.5 billion will come in 26, 27, or I don't know if I misunderstood and there is some subsidies that will come in cash in 25. Thank you very much.

Thank you very much. Now, as to your first question. You'll remember that from 2022 to 23, we were managing a special plan for the maintenance of the assets in the network, which accumulated 100 million over the two years. But it was especially intense in the final quarter of 23. And that meant that part of the differences that you observe looking at the last quarter of 24 compared to 23 is down to those one-offs, we can say. which we had to additionally manage in December 23. And then to give you a point of reference, with fibre optics and that, what we've got in Red 10. For 2025, we're expecting to see a slight increase in EBITDAs. There are some adjustments with one-offs in 2024, but what we're expecting for 2025 is they'll get consolidated EBITDA at the current levels or possibly even a bit higher than what we ended 2024 with. And then our net financial debt, Emilio, well, 25 is collecting the price of the stake in Hispasat. And it's true that most of the European funds will come in 2026 and 27. But Emilio, you've probably got some other items you can add here. Well, just continuing with the subsidies we've already mentioned, yes, in 2025, we are considering that we'll collect subsidies of about 200 million euros between, well, most of it actually will come from the congestion fees that we already talked about, but also some of the 30 million euros we'll collect from the European subsidies for the interconnection with France. So in our net financial debt for 2025, we're including the increase against 2024 of 250 million approximately. And that's positively impacted by the 200 million in subsidies and negatively impacted because As we've already told you in our presentation, at the end of 2024, we've got some 200 million euros which we had to return to the system because we still have the provisional settlements for 2022, 23 and 24. And we think in 2025, we'll be regularizing the situation totally. And then we'll have to make that payment. And then the rest of the increase in our debt is moderate, given that indeed we'll be collecting 725 million euros from the sale of Hispasat. And we'll also have an EBITDA, which will be significant. Obviously, we'll have to use it in order to be able to cover the level of investment we have of that 1.4 billion euros that we've already been discussing.

Thank you. Our next question is from James Brand at Deutsche Bank. Please go ahead. Hi, James. Can you please check your line is not on mute? Unfortunately, we're not getting any audio from James's line, so we'll move on. And we now have no further questions on the English room.

In that case, we can now take questions that we've received through the mail. Most of them have already been asked, but analysts have asked us, matching from Bank of America, Barclays, and Renta Cuatro, and Westinberg. So, the two questions outstanding are, are we expecting to obtain further subsidies, taking into account the higher CapEx we're going to have to deal with? That's the first question. Shall I give you the others too? What's the remuneration on financial assets for 2025? And can you give us some forward looking information on that? Well, first of all, thank you for your questions. No, we're not working on a scenario which would include other subsidies. Our starting point is what we've already discussed. As Emilio said, the total figure probably would be about 2.5 billion. And we're looking at the kind of remuneration and we're not expecting to get further subsidies from funds. And you asked about the RAB. That's the starting point for recurring growth over the next few years. So the point of reference there would be that it's quite complex. You have to look at the old assets, our back book and such like, but we're talking of about 10.5 billion. That's our reference point, starting point. OK, well, that was the final question. And so we can wrap up today's presentation. As always, the investor relations team is here to clarify things further if you want. So many thanks to everyone. See you soon.