Full Year 2025 Redeia Corp SA Earnings Call and Business Update

February 26, 2026

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Beatriz Corredor: Buenos días! Good morning, ladies and gentlemen. We're starting our earnings call for 2025 and the new strategy plan for the period 2026, 2029. We bid welcome to all attendants via telephone and our webpage. With us are Beatriz Corredor, Chairwoman of the Board of Directors, Roberto García Merino, Chief Executive Officer, and Emilio Cerezo, Chief Financial Officer. I now give the floor to our Chairwoman, Beatriz Corredor. Thank you very much, Sol. Good morning, everyone. First, I will start by highlighting the most notable events of 2025. Then our CEO, Roberto, will go deeper into the year's figures and discuss the close of the financial year.

When does the I guess.

Good morning, ladies and gentlemen, we're starting our earnings call for 2025, and the new strategy plan for the period of 'twenty 'twenty six 'twenty 'twenty nine with bad well come to contain nine with bad welcome to all the attendance by a telephone and our webpage with us are bad today's corridor.

Chair of the board of Directors, Roberto Garcia Merino, Chief Executive Officer, and familiar set itself chip Chief Financial Officer, and now I'll give the floor towards chairwoman batteries corridor. Thank you very much so and good morning, everyone.

First I will start by highlighting are the most notable events of 2025 and then our CEO Roberto will go deeper into the year's figures and this guy at the close of the financial year. Our later referred to the environment in which the board definitely they are brings.

Beatriz Corredor: I will later refer to the environment in which the board of Redeia brings this strategy plan. Once more, Roberto will go into deeper detail on it. As usual, we will conclude with a question-and-answer period to address any of your queries or concerns. As I said, let's get started with 2025 highlights. From an operational viewpoint, we can say we've made great progress with a record of investment in TSO, exceeding EUR 1.5 billion, or 40% more than in 2024. A record figure in our 41-year history, and it's almost a 4-fold increase in the investment rate in nearly 4 years.

This strategy plan.

And one smart Roberto will go into deeper detail on it and as usual, we will conclude with a question and answer period to address any of your queries or concerns. So as I said, let's get started with the 2025 highlights from an operational.

Viewpoint.

We can say we've made great progress with our records of investments and a T. S O exceeding $1 5 billion euros or 40% more than in 2024.

A record figure and or a 41 year history and at a almost a four fold increase in the investment rate in nearly four years.

Beatriz Corredor: This effort includes the EUR 1.4 billion invested in the transmission network, with 486 extra km of circuit and 217 new positions to strengthen the network and facilitate the country's industrial and productive development. Moreover, the availability index of the national transmission network, operated by Red Eléctrica, sits at 98.39%, exceeding 98.06, achieved during 2024. It is therefore clear that 2025 was a key year, also from the regulatory point of view, as the CNMC published the remuneration letters for the new regulatory period going from 2026 to 2031. Also, the regulator approved the remuneration for the system operator for the 2026, 2028 period.

This effort includes a 1.4 billion invested in the transmission network with 486 extra kilometers.

Off circuit and to 117, new positions to strengthen the network and facilitate the country's industrial and productive development.

Moreover, the availability index off the National transmission network operated by drive electric sits at 98.39% exceeding 98 point those six achieved during 2024.

It is therefore clear that 2025 was a key year also from the regulatory point of view as the C. N N C published the remuneration matters for the new regulatory period.

Going from 2026 to 28 31.

Also the regulator approved the remuneration for the system operator for the 26 28 period.

Beatriz Corredor: This financial year, 2026, is expected to be better than the previous year, as the current methodology takes the actual costs for 2024 and foresees a regularization based on actual data from 2025, which already has an impact on the 2026 bottom line. As for the transmission network, we believe it should be adequately remunerated during a time when the relevant role played by its reinforcement and its maintenance accounts for. Certainly, we were expecting further signals, considering the effort being made in our infrastructure, and we'll have to continue, as you will see during the presentation.

This or with this this financial year 'twenty 'twenty six is expected to be better than the previous year as the current methodology.

The actual costs for 'twenty 'twenty four.

And of course these are regularisations based on actual data from 2025, which already has an impact on the 20th twenty-six bottomline.

As for the transmission network, we believe it should be adequately remunerated during a time when the relevant role played by its reinforcement and it's a maintenance account for it.

Certainly we were expecting further signals considering the efforts being made in our infrastructure and we'll have to continue as you will see during the presentation.

Beatriz Corredor: In the field of income and revenues, in parallel, we've made progress on high-impact corporate milestones, including the completion of the Hispasat sale, with a payment of EUR 725 million for 89.68% stake that we had in the satellite company. As we have said before, this strengthens our financial position to continue enabling the energy transition in Spain. The European Investment Bank has become a key partner in this regard, as they support us in funding strategic projects like the pumping station in Salto de Chira and the interconnection with France. In addition, we signed an extra EUR 1.1 billion in loans with several entities, including a EUR 300 million contract with the ICO, and issued a EUR half billion green bond. If there is a relevant event in 2025, we're talking about the big blackout on 24 April 2025.

And the field of income and revenues in parallel we've made progress on high impact corporate milestones, including the completion of the his besides sale with a payment of 725 million for 89.68% stake that we had under satellite company as we have.

Said before they're strengthens our financial position to continue enabling the energy transition in Spain.

The European investment Bank has become a key partner in this regard as they support us in funding strategic projects like the pumping station in south of the Cheetah and the interconnection with France. In addition, we signed an extra 1.1 billion euros in loans with several enter.

Including a 300 million euro contract with the Ico and issued.

<unk> billion Green bond.

But if there is a relevant event in 2025, we're talking about the big blackout on April 24, and unprecedented unpredictable multifactorial incident.

Beatriz Corredor: An unprecedented, unpredictable, multifactorial incident, as acknowledged by all official reports, both from the European Expert Panel and from the Government Analysis Committee. These technical analysis confirmed the sequence of events as described in the systems operator's report. All reports agreed that it was a serious, unforeseen event, oscillations, and generation disconnections, in some cases through shared evacuation structures with healthy voltages within the limits of the transmission grid and inadequate voltage control service. All this led the incident to an unprecedented, as I said, incident, both at a national and international level. This comes from the technical, rigorous analysis of data. There is no guesswork here and no generalization. For this reason, Red Eléctrica confirms that it operated the system correctly, in strict compliance with the regulations before, during, and the blackout on April 28.

Was acknowledged by all official reports both from the European experts panel and from the government analysis Committee. Please.

These technical analysis confirmed the sequence of events as described and the system operators report.

All reports agreed that it was a serious unforeseen events oscillations generation disconnections in some cases through shared evacuation structures with healthy voltages within the limits of the transmission grid and inadequate voltage control service. All this let the incident too.

Unprecedented as I said incident, both at a national and international level. This comes from the technical rigorous analysis update us bid.

There is no guess work here and no generalization for this reason drives electric I confirmed that it operated the system correctly in strict compliance with the regulations before during and the blackout on April 28, because.

Beatriz Corredor: Because if there's a highly regulated industry in our country, that is the electricity sector, meaning that both the system operator and other parties involved must comply with the present regulation, which is obviously not approved by Red Eléctrica, but by the executive, legislative, or regulatory authorities after due procedure, guaranteeing that all parties concerned are heard. This is the case for the new control operating procedure, 7.4 on voltage control, which was requested in 2020 by Red Eléctrica and approved in 25 June, now in the process of implementation, or the measures proposed by the system operator for a sudden voltage variations control, or the new functions recently assigned to the operator, which we take on with huge responsibility as a sign of recognition to the work and professionalism of our team.

If there is a highly regulated industry and our country that is the electricity sector, meaning that both the system operator in other parties involved must comply with the present regulation, which is obviously not approved bifoliate electrical but by the executive legislative or regulatory authorities.

After a Jew procedure guaranteeing that all parties concerned are heard and this is the case for the nuc control operating procedure.

1.40 and voltage control.

Which was a requested in 'twenty 'twenty by array of electrical and approved in June 25, now under process of implementation or the measures proposed by the system operator for a sudden voltage variations control or the new functions recently assigned to the operator, which we.

We take on with huge responsibility as a sign of recognition to the work and professionalism of our team I will now give the floor to Roberto Garcia Merino, our CEO, who will give you more detail on the financial results for financial year, 2025%.

Beatriz Corredor: I will now give the floor to Roberto García Merino, our CEO, who will give you more detail on the financial results for financial year 2025.

Roberto García Merino: Pasando ahora a valorar nuestra cuenta de pérdidas y ganancias, destacamos que en 2025 nuestros resultados han estado alineados con las expectativas que teníamos para el ejercicio, superándolas incluso ligeramente, mostrando una evolución positiva en las principales líneas de actividad y con un 89% del EBITDA del grupo procedente de negocio regulado.

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Emilio Cerezo: This has grown 4.2%, launched mainly by the increase of EUR 71 million of this regulated in Spain. This is due to the new financial retribution that was approved by the CNMC and the new types of help that has been given have been adjusted by the lower maintenance units that we need to spend. Internationally speaking, we have gone down a little bit because of businesses in Chile and because of the exchange rate between the US dollar and the EUR, that was compensated in other countries like Peru and Brazil. The fiber optic business and the positive effect of the inflation of CPI linked contracts is offset by the renegotiation of some contracts in a context of market concentration.

[Translator 1]: This has grown 4.2%, launched mainly by the increase of EUR 71 million of this regulated in Spain. This is due to the new financial retribution that was approved by the CNMC and the new types of help that has been given have been adjusted by the lower maintenance units that we need to spend. Internationally speaking, we have gone down a little bit because of businesses in Chile and because of the exchange rate between the US dollar and the EUR, that was compensated in other countries like Peru and Brazil. The fiber optic business and the positive effect of the inflation of CPI linked contracts is offset by the renegotiation of some contracts in a context of market concentration.

This has grown four 2% launched mainly by the increase of 71 million of there's a regulation in Spain and this is due to the new financial distribution that was approved by the CMC and the new.

Types of help that has been given up you know just by the lower maintenance units that we need to spend and then internationally speaking we have gone down a little bit because of our businesses in Chile, and because of the exchange rate between the dollar and the euro that was compensated in other countries like Peru and Brazil.

So the fiber optic business and the positive effect of the inflation of CPI linked contracts is offset by the renegotiation of some contracts in a context of market concentration.

Emilio Cerezo: With regards to operating expenses, and without considering those that are offset by other operating incomes, including Salto de Chiloé, we see that the expenses grew 5.6% in an environment of increased activity and operational demands, in line with the business growth and the network requirements. Personnel expenses went up due to a larger average workforce, which was necessary to be able to meet the challenges arising from the strong growth of the group's regulated assets and also higher salary costs. Other operating expenses grew, basically due to higher maintenance costs in Spain, which have contributed to have a high availability rate for the transmission network. The EBITDA grew 4%, driven mainly by higher contribution from the TSO.

[Translator 1]: With regards to operating expenses, and without considering those that are offset by other operating incomes, including Salto de Chiloé, we see that the expenses grew 5.6% in an environment of increased activity and operational demands, in line with the business growth and the network requirements. Personnel expenses went up due to a larger average workforce, which was necessary to be able to meet the challenges arising from the strong growth of the group's regulated assets and also higher salary costs. Other operating expenses grew, basically due to higher maintenance costs in Spain, which have contributed to have a high availability rate for the transmission network. The EBITDA grew 4%, driven mainly by higher contribution from the TSO.

Whereas regards to operating expenses without considering those and that's all set by other operating income, including Salt, though that you know we see that the expenses grew five 6% in an environment of increased activity and operational demands in line with the business growth and the network requirements.

Personnel expenses went up due to a larger average workforce, which was necessary to be able to meet the challenges arising from the strong growth of the group's regulated assets and also a higher salary costs. Other operating expenses grew basically due to higher maintenance costs in Spain, which have contributed to have that high.

Variability right for the transmission network that they've done grew 4% driven mainly by higher contribution from the G. S.

Emilio Cerezo: It's noteworthy that there's an improvement in international business, aided by lower operating expenses, as well as the strong performance of fiber optic business, which combines higher revenues with more contained costs. The profit has reached EUR 506 million, which is 37.2% higher than 2024, due to the impairment recorded in 2024, following the agreement to sell Hispasat, while profit from continuing operations grew by 1.6%. We should say that the financial results worsened by EUR 20 million, due to lower financial income in 2025 compared to 2024, mainly due to the lower placement of cash surpluses. Corporate income tax increased with an effect rate above 25%, due to the fiscal impact and dividends that were received from group companies that are not part of the tax base.

[Translator 1]: It's noteworthy that there's an improvement in international business, aided by lower operating expenses, as well as the strong performance of fiber optic business, which combines higher revenues with more contained costs. The profit has reached EUR 506 million, which is 37.2% higher than 2024, due to the impairment recorded in 2024, following the agreement to sell Hispasat, while profit from continuing operations grew by 1.6%. We should say that the financial results worsened by EUR 20 million, due to lower financial income in 2025 compared to 2024, mainly due to the lower placement of cash surpluses. Corporate income tax increased with an effect rate above 25%, due to the fiscal impact and dividends that were received from group companies that are not part of the tax base.

Oh, sorry, it's noteworthy that there's an improvement in international business aided by lower operating expenses as well as the strong performance of fiber optic business, which combines higher revenues with more can change course.

Yes.

The profit has reached 506 million euros, which is 37, 2% higher than 'twenty 'twenty four due to the impairment recorded in 2024 following the agreement to sell his spots while profit from continuing operations grew by one 6%.

We should say that the financial results.

[noise] worsened by 20 million due to lower financial income in 2025 compared to <unk> 24, mainly due to the lower placements of Cassius surfaces.

Corporate income tax increase with an effect trade above 25% due to the physical impact on dividends that was received from group companies that are not part of the tax base.

Emilio Cerezo: From the financial perspective, the net group's debt is EUR 5.4 billion at the end of the year, which represents an increase of EUR 100 million compared to December 2024. The cash generation, together with the EUR 725 million received from the sale of Hispasat and dividends from the group, especially from Brazil, have helped us to contain the growth of that debt and continue to have solid financial structure with an EBITDA rate of 4.4x and an FFO of net debt of 18.94%.

[Translator 1]: From the financial perspective, the net group's debt is EUR 5.4 billion at the end of the year, which represents an increase of EUR 100 million compared to December 2024. The cash generation, together with the EUR 725 million received from the sale of Hispasat and dividends from the group, especially from Brazil, have helped us to contain the growth of that debt and continue to have solid financial structure with an EBITDA rate of 4.4x and an FFO of net debt of 18.94%.

From the financial perspective, the net group said that to the 5.24 billion.

End of the year, which represents an increase of 100 million euros compared to December 2024.

Cash generation together with the 725 million received from the sale of his spots on dividends from the group, especially from Brazil has helped us to contain the growth of that debt and to continue to have solid financial structure with an EBITDA range of four four times and then S F.

So over net debt of $18.94.

Emilio Cerezo: With the results of 2025 and what we've already seen from the period of 2021, 2024, we can say that we have exceeded all the objectives set out in our strategic plan for the period of 2021, 2025, placing the company in a very solid position to tackle the challenges of the new strategic plan. The TSO investments have reached EUR 4.4 billion, exceeding the initial target of EUR 3.3 billion, ending with a historic figure, as was said before, of more than EUR 1.5 billion of TSO in 2025. The EBITDA margin stood at a solid 75.8%, which also has complied with what was foreseen.

[Translator 1]: With the results of 2025 and what we've already seen from the period of 2021, 2024, we can say that we have exceeded all the objectives set out in our strategic plan for the period of 2021, 2025, placing the company in a very solid position to tackle the challenges of the new strategic plan. The TSO investments have reached EUR 4.4 billion, exceeding the initial target of EUR 3.3 billion, ending with a historic figure, as was said before, of more than EUR 1.5 billion of TSO in 2025. The EBITDA margin stood at a solid 75.8%, which also has complied with what was foreseen.

With the results of 2025, and what we've already seen from the period of 'twenty. One 'twenty four we can see that we have exceeded all the objectives.

I was in our strategic plan for the period of 2021 'twenty to 'twenty five.

Placing the company in a very solid position to tackle the challenges of the new strategic plan.

<unk> tier so investments have reached four 4 billion.

Exceeding the initial target of 3.3, ending with a historic figure as was said before.

More than 1.5 billion of T. S. O N E 25, EBITDA margin it stood at a solid 75, 8%.

Which also has complied with what was foreseen we have a balanced financial structure with a net debt EBITDA ratio football for it and it says oh over that over an 18, 8% and we have preserved an a minus credit rating with both Fitch and standard and Poor's finally, we have.

Emilio Cerezo: We have a balanced financial structure with a net debt EBITDA rate of 4.4 and an FFO over debt of 18.9%, we have preserved an A-minus credit rating with both Fitch and Standard & Poor's. Finally, we have ensured a stable shareholder return throughout the whole period, we've improved even the initial dividend distribution target. In short, we're closing this plan in 2025 with an excellent level of execution and a very solid position in order to face the next stage. Now I'd like to give the floor back to our chairwoman.

[Translator 1]: We have a balanced financial structure with a net debt EBITDA rate of 4.4 and an FFO over debt of 18.9%, we have preserved an A-minus credit rating with both Fitch and Standard & Poor's. Finally, we have ensured a stable shareholder return throughout the whole period, we've improved even the initial dividend distribution target. In short, we're closing this plan in 2025 with an excellent level of execution and a very solid position in order to face the next stage. Now I'd like to give the floor back to our chairwoman.

And ensure it is stable shareholder returns throughout the whole period, and we've improved even the initial dividend distribution targets insurers. We're closing this plan in 2025 with an excellent level of execution and a very solid position in order to face. The next stage now I'd like to give the floor back to our chairwoman.

Yes.

Beatriz Corredor: Well, in truth, it is great to hear how we met our strategy plan exceeding expectations. Allow me to congratulate the whole team for it. In recent years, the energy industry has undergone a radical transformation. We're witnessing a new scenario driven by three large dynamics: the acceleration of electrification, the growing demand for network infrastructures to connect more dispersed and fragmented generation structure, and the need to ensure a secure, sustainable, and competitive supply always. Electrification moves on at an unstoppable pace, and the demand for electricity grows faster than global energy consumption. This change is driven by new needs, starting with the expansion of electric vehicles and data centers. Continuing to the electrification of industry, the installation of electrolyzers, heat pumps, and battery factories. All these elements are redefining consumption patterns and demand more robust, smarter, and more resilient networks.

[Translator 1]: Well, in truth, it is great to hear how we met our strategy plan exceeding expectations. Allow me to congratulate the whole team for it. In recent years, the energy industry has undergone a radical transformation. We're witnessing a new scenario driven by three large dynamics: the acceleration of electrification, the growing demand for network infrastructures to connect more dispersed and fragmented generation structure, and the need to ensure a secure, sustainable, and competitive supply always. Electrification moves on at an unstoppable pace, and the demand for electricity grows faster than global energy consumption. This change is driven by new needs, starting with the expansion of electric vehicles and data centers. Continuing to the electrification of industry, the installation of electrolyzers, heat pumps, and battery factories. All these elements are redefining consumption patterns and demand more robust, smarter, and more resilient networks.

In truth. It was great to hear how we made our strategy plan exceeding expectations. So allow me to congratulate the whole team for it.

Recent here's the energy industry has undergone a radical transformation, we're witnessing our newest scenario driven by three large dynamics the exploration of electrification the growing demand for network infrastructures to connect more dispersed than fragment of generation structure and the need to.

Ensure a secure sustainable and competitive supply always electrification moves on that an unstoppable pace and the demand for electricity grows faster than global energy consumption.

This change is driven by new needs starting with the expansion of electric vehicles in data centers and continuing to the electrification of industry. The installation of Electrolyzed, there's heat pumps and battery factories. All these elements are redefining consumption patterns and demand more robust smarter and more.

Resilience network.

Beatriz Corredor: Spain specifically faces an enormous opportunity. The growth of electricity demand associated to new industrial and digital consumption places our country in a strategic position within Europe. This scenario is not safe from significant challenges, as it offers enormous potential to lead the energy transition and consolidate a cleaner, more efficient model, in which Spain will take a leading position due to its high and secure penetration of renewable energies, reaching nearly 57% of our energy mix, including 8 gigawatts of photovoltaic self-consumption. In this context, electricity networks are the strategic enabler of the transformation. Without well-dimensioned robust grids, no transition is possible. Therefore, this is a strategic priority for oncoming years. Globally, and according to the World Energy Outlook 2025, global investment in networks will strongly grow until 2035, driven by the electrification of end consumption.

[Translator 1]: Spain specifically faces an enormous opportunity. The growth of electricity demand associated to new industrial and digital consumption places our country in a strategic position within Europe. This scenario is not safe from significant challenges, as it offers enormous potential to lead the energy transition and consolidate a cleaner, more efficient model, in which Spain will take a leading position due to its high and secure penetration of renewable energies, reaching nearly 57% of our energy mix, including 8 gigawatts of photovoltaic self-consumption. In this context, electricity networks are the strategic enabler of the transformation. Without well-dimensioned robust grids, no transition is possible. Therefore, this is a strategic priority for oncoming years. Globally, and according to the World Energy Outlook 2025, global investment in networks will strongly grow until 2035, driven by the electrification of end consumption.

Wayne specifically faces an enormous opportunity the growth of electricity demand associated to new industrial and digital consumption places, our country and our strategic position within Europe.

This scenario.

Is not save from significant challenges as it offers enormous potential to lead the energy transition and consolidate a cleaner more efficient model N, which Spain would take a leading position due to its high and secure penetration of renewable energies, reaching nearly cause.

87% of our energy mix, including eight gigawatts of photovoltaic cells consumption.

And there's context electricity networks are there strategic enabler of the transformation without well dimension to robust grids no transition as possible. Therefore, this is a strategic priority for upcoming years globally and according to the world Energy outlook 2025.

While investment in networks will strongly grow until 'twenty 35, driven by the electrification and consumption.

Beatriz Corredor: For an electricity transmission operator such as Red Eléctrica, this scenario is a sustained opportunity for growth, backed by a stable regulatory framework, increasing investment requirements, a clear roadmap for expanding and modernizing the grid, and with agile administrative and environmental processing of projects, which is one of the major areas for improvement at present. Moreover, the decisive push also comes from European institutions to make decarbonization into the real driver for growth, security, and energy autonomy, which are vital for the continent. In this regard, tools such as the European Grids Package, recently presented by the European Commission, seeks to boost investment in electricity infrastructure, speed up permits, and improve the coordination of network planning at the European Union level. The same can be said of the Energy Highways project, identifying up to eight large bottlenecks in Europe that need to be resolved urgently to complete the energy union.

[Translator 1]: For an electricity transmission operator such as Red Eléctrica, this scenario is a sustained opportunity for growth, backed by a stable regulatory framework, increasing investment requirements, a clear roadmap for expanding and modernizing the grid, and with agile administrative and environmental processing of projects, which is one of the major areas for improvement at present. Moreover, the decisive push also comes from European institutions to make decarbonization into the real driver for growth, security, and energy autonomy, which are vital for the continent. In this regard, tools such as the European Grids Package, recently presented by the European Commission, seeks to boost investment in electricity infrastructure, speed up permits, and improve the coordination of network planning at the European Union level. The same can be said of the Energy Highways project, identifying up to eight large bottlenecks in Europe that need to be resolved urgently to complete the energy union.

For an electricity transmission operators, such as Italy. They yeah. This scenario is a sustained opportunity for growth backed by a stable regulatory framework.

Increasing investment requirements, a clear road map for expanding and modernizing the grid and with agile administrative and environmental processing of projects, which is one of the major areas for improvement at present.

Moreover, the decisive push also comes from European institutions to make decarbonization into the real driver for growth security and energy autonomy, which are vital for the continent. In this regard tools such as the networks package recently presented by the <unk>.

European Commission seeks to boost investment in electricity infrastructure speed up permits and improve the coordination of network planning at the European Union's level.

And the same can be said all the energy highways project identifying up to eight large bottlenecks in Europe that need to be resolved urgently to complete the energy Union. These include two new transparently and interconnections, which are absolutely a must to meet E targets and and they.

Beatriz Corredor: These include two new Trans-Pyrenean interconnections, which are absolutely a must to meet EU targets and enable the degree of interconnection required by the Iberian Peninsula, which, as I usually say, is more of an electricity island than Ireland itself. This institutional commitment is fundamental to ensure the development of the necessary electricity infrastructure and to sustain the pace of investment required by the energy transition. This transition involves a much more complex environment, not only due to the massive integration of renewables, but also because of the emergence of new consumption modes and technologies. The electricity system is evolving towards a more dispersed structure, with decentralized energy resources and increasingly active consumers. This requires new tools, new services, and a much more dynamic operation of the system. To this end, digitalization will play a key role.

[Translator 1]: These include two new Trans-Pyrenean interconnections, which are absolutely a must to meet EU targets and enable the degree of interconnection required by the Iberian Peninsula, which, as I usually say, is more of an electricity island than Ireland itself. This institutional commitment is fundamental to ensure the development of the necessary electricity infrastructure and to sustain the pace of investment required by the energy transition. This transition involves a much more complex environment, not only due to the massive integration of renewables, but also because of the emergence of new consumption modes and technologies. The electricity system is evolving towards a more dispersed structure, with decentralized energy resources and increasingly active consumers. This requires new tools, new services, and a much more dynamic operation of the system. To this end, digitalization will play a key role.

Well the degree of interconnection required by the Iberian Peninsula, which as I, usually say is more of an electricity Island, then Ireland itself.

Institutional commitment and it's fundamental to ensure the development of the necessary electricity infrastructure and to sustain the pace of investment required by the energy transition.

This transition involves a much more complex environment not only due to the massive integration of renewables, but also because of the emergence of new consumption modes and technologies. The electricity system is evolving towards a more dispersed structure with decentralized energy resources and increasingly.

Active consumers this requires new tools new service is in a much more dynamic operation of the system.

To this and digitalization will play a key role smart grid sensors.

Beatriz Corredor: Smart grids, sensors, real-time control systems, and technology platforms that will allow us to anticipate and manage events in a much more variable environment. In this context, storage will also play a fundamental role in maintaining system stability. To face all these challenges, Redeia, as system operator, will have to develop new capabilities, ensuring the resilience of the system and guaranteeing the quality and security of supply at all times. In summary, we face a more demanding situation filled with opportunities to move towards a more efficient, secure, and fully decarbonized system. The National Integrated Plan for our country sets a clear path to advance in decarbonization and electrification of the country, setting up very ambitious targets.

[Translator 1]: Smart grids, sensors, real-time control systems, and technology platforms that will allow us to anticipate and manage events in a much more variable environment. In this context, storage will also play a fundamental role in maintaining system stability. To face all these challenges, Redeia, as system operator, will have to develop new capabilities, ensuring the resilience of the system and guaranteeing the quality and security of supply at all times. In summary, we face a more demanding situation filled with opportunities to move towards a more efficient, secure, and fully decarbonized system. The National Integrated Plan for our country sets a clear path to advance in decarbonization and electrification of the country, setting up very ambitious targets.

Real time control systems, and technology platforms that will allow us to anticipate and manage events in a much more variable environment. In this context storage will also play a fundamental role in maintaining system stability.

And to face all of these challenges play they are as a system operator will have to develop new capabilities, ensuring the resilience of the system and guaranteeing the quality and security of supply at all times.

In summary, we face a more demanding situations filled with opportunities to move towards a more efficient secure and fully decarbonize system.

Thus the national integrated plan.

For our country's sets a clear path to advance of decarbonization and electrification of the country setting up very ambitious targets amongst these reducing emissions by 55% increasing energy efficiency cutting in half our dependence from the outside and.

Beatriz Corredor: Amongst these, reducing emissions by 55%, increasing energy efficiency, cutting in half our dependence from the outside, and achieving more than 80% savings and renewable generation in the electricity mix. Of course, the vision requires infrastructure to support it, and this is where electricity planning comes into play for the period 25, 30. This process mobilizes over EUR 13 billion in investment in the transmission grid to integrate new renewable generation, facilitate electricity consumption, and strengthen security and supply. This 25 to 30 plan, currently in the phase of analysis for the comments submitted by public consultation launched by the ministry, is structured around two main principles.

[Translator 1]: Amongst these, reducing emissions by 55%, increasing energy efficiency, cutting in half our dependence from the outside, and achieving more than 80% savings and renewable generation in the electricity mix. Of course, the vision requires infrastructure to support it, and this is where electricity planning comes into play for the period 25, 30. This process mobilizes over EUR 13 billion in investment in the transmission grid to integrate new renewable generation, facilitate electricity consumption, and strengthen security and supply. This 25 to 30 plan, currently in the phase of analysis for the comments submitted by public consultation launched by the ministry, is structured around two main principles.

Achieving more than 80% savings and renewable generation and the electricity mix of course, the vision requires infrastructure to support it and this is where electricity planning comes into play for the period 25 30.

This process Mobilise has over 13 billion euros and investment in the transmission grid to integrate new renewable generation facilitate electricity consumption and strength in security and supply. There is a 25 to 30 plan currently in the phase.

He's a analysis for all the comments submitted by public consultation launched by the Ministry.

Is structured around two main principles on the one hand maximizing the use of the existing grid to make it more flexible and resilient and on the other side deploying new infrastructures wherever necessary to integrate renewable generation meet new consumption needs and reinforce this.

Beatriz Corredor: On the one hand, maximizing the use of the existing grid to make it more flexible and resilient. On the other side, deploying new infrastructures wherever necessary to integrate renewable generation, meet new consumption needs, and reinforce the security and stability of supply. It also integrates new fundamental elements, such as international interconnections and the connection between island and peninsular systems.... Beyond moving ahead on these projects, from the new plan, I would also like to stop here for a moment to discuss the present state of the transmission network, which can be by no means be described as collapsed. The current grid enables the circulation of electricity produced by generation facilities for a total installed capacity of 150 gigawatts, a record for the national electricity system.

[Translator 1]: On the one hand, maximizing the use of the existing grid to make it more flexible and resilient. On the other side, deploying new infrastructures wherever necessary to integrate renewable generation, meet new consumption needs, and reinforce the security and stability of supply. It also integrates new fundamental elements, such as international interconnections and the connection between island and peninsular systems.... Beyond moving ahead on these projects, from the new plan, I would also like to stop here for a moment to discuss the present state of the transmission network, which can be by no means be described as collapsed. The current grid enables the circulation of electricity produced by generation facilities for a total installed capacity of 150 gigawatts, a record for the national electricity system.

Security and stability of supply. It also integrates new fundamental elements, such as international interconnections and the connection between Ireland and Peninsula systems.

Beyond moving ahead on these projects from the New plan I would also like to stop here for a moment to discuss the present state of the transfer of the transmission network, which can be by no means be described as collapsed.

The current grid enables the circulation of electricity produced by generation facilities for a total installed capacity of 150 Gigawatts a record for the National language Tracy system, 70% of this installed capacity comes from renewable sources and its much more dispersed than fragmented into smaller.

Beatriz Corredor: 70% of this installed capacity comes from renewable sources, and it's much more dispersed and fragmented into smaller plants throughout the country. Not only that, with the current network built and planned, permits have already been granted for access and connection in projects totaling another 164 gigawatts, out of which 129 belong to wind and PV facilities, 16 gigawatts for storage facilities, and 19 gigawatts for demand facilities. Out of the latter 19 gigawatts, nearly 12 gigawatts of capacity granted since 2022, which is when the present plan was launched. Those 12 gigawatts are not in service yet, not connected to the grid, and therefore not generating demand, because the developers have a minimum of 5 years to develop their projects and then connect to the grid.

[Translator 1]: 70% of this installed capacity comes from renewable sources, and it's much more dispersed and fragmented into smaller plants throughout the country. Not only that, with the current network built and planned, permits have already been granted for access and connection in projects totaling another 164 gigawatts, out of which 129 belong to wind and PV facilities, 16 gigawatts for storage facilities, and 19 gigawatts for demand facilities. Out of the latter 19 gigawatts, nearly 12 gigawatts of capacity granted since 2022, which is when the present plan was launched. Those 12 gigawatts are not in service yet, not connected to the grid, and therefore not generating demand, because the developers have a minimum of 5 years to develop their projects and then connect to the grid.

Plants throughout the country, but not only that with the current network built and plant permits have already been granted for axis and connection and projects totaling another 164, gigawatts out of which 129.

Belong to a wind and PV facilities 16, gigawatts for storage facilities, and 19 gigawatt for demand facilities out of the latter 19, Gigawatts nearly 12 gigawatts of capacity granted to 'twenty to 'twenty, two which is when the present plan was launched and though.

12, Gigawatts are not in service, yet not connected to the grid and therefore, not generating demand because the developers have a minimum of five years to develop their projects and their.

And then connect to the grid and even in those conditions 25 per cent of Red electric as notes still have available capacity for new applications. Therefore, we cannot talk about lack of anticipation considering another piece of the context. The present planning 'twenty one to 'twenty six come to play.

Beatriz Corredor: Even in those conditions, 25% of Red Eléctrica's nodes still have available capacity for new applications. Therefore, we cannot talk about lack of anticipation considering another piece of the context. The present planning, 21 to 26, contemplated proposals to deal with 2 GW of new demand, and 12 were granted. When these 12 GW come into service, they will entail an increase of 25% of the present demand in the Spanish system. The capacity of the transmission network that distribution operators plan to reserve for facilities connected to their own networks also doubles the historical peak of the system, which is 45 GW. Even so, we need to further reinforce our networks, both distribution and transmission. The energy transition is a historic opportunity for competitiveness, industrialization, and the strategic sovereignty of Europe and the Iberian Peninsula, and of course, specifically for Spain.

[Translator 1]: Even in those conditions, 25% of Red Eléctrica's nodes still have available capacity for new applications. Therefore, we cannot talk about lack of anticipation considering another piece of the context. The present planning, 21 to 26, contemplated proposals to deal with 2 GW of new demand, and 12 were granted. When these 12 GW come into service, they will entail an increase of 25% of the present demand in the Spanish system. The capacity of the transmission network that distribution operators plan to reserve for facilities connected to their own networks also doubles the historical peak of the system, which is 45 GW. Even so, we need to further reinforce our networks, both distribution and transmission. The energy transition is a historic opportunity for competitiveness, industrialization, and the strategic sovereignty of Europe and the Iberian Peninsula, and of course, specifically for Spain.

<unk> proposals to deal with two Gigawatts of new demand and 12 were granted when these 12 gigawatts come into service. They will entail an increase of 25% of the present demand in the Spanish system.

The capacity of the transmission network that distribution operators plan to reserve for facilities connected to their own networks also doubles the historical peak of the system, which is 45 gigawatts.

Even so we need to further reinforce our networks, both distribution and transmission. The energy transition is an historic opportunity for competitiveness industrialization and the strategic sovereignty of Europe, and the Iberian Peninsula and of course, specifically for <unk>.

Beatriz Corredor: The main projects for the future Plan 25 to 30 includes major access running across the peninsula, reinforcement of rings around large cities, and new links between islands and with the peninsula, which will enable quick deployment of renewables and new electricity consumption connected to the electrification of our economy. We will continue to work on interconnections with France, Portugal, and in the near future, with Morocco, to increase the security of our system. In addition to all this, we're implementing storage projects such as Salto de Chira in the Canary Islands, or the batteries we're launching in Balearic Islands, to increase the capacity between the mainland and the islands.

[Translator 1]: The main projects for the future Plan 25 to 30 includes major access running across the peninsula, reinforcement of rings around large cities, and new links between islands and with the peninsula, which will enable quick deployment of renewables and new electricity consumption connected to the electrification of our economy. We will continue to work on interconnections with France, Portugal, and in the near future, with Morocco, to increase the security of our system. In addition to all this, we're implementing storage projects such as Salto de Chira in the Canary Islands, or the batteries we're launching in Balearic Islands, to increase the capacity between the mainland and the islands.

Pain the main projects for the future planned 25 to 30 includes major access running across the peninsula reinforcement of rings around large cities and new links between Ireland, and what the peninsula, which will enable quick deployment of renewables and new electricity consumption.

To the electrification of our economy, we will continue to work on interconnections with France, Portugal and in the near future with Morocco to increase the security of our system and.

In addition to all this we're implementing storage project such as salt other cheetah in the Canary Islands, or the batteries were launching and Barry Alec Balearic Islands to increase the capacity between the mainland and the island and we're also integrated new voltage control elements in the peninsula.

Beatriz Corredor: We're also integrating new voltage control elements in the peninsula, and new synchronous compensators are being installed to reinforce the voltage regulation capacity and will guarantee operational stability in scenarios with high renewable penetration and lower system inertia. In sum, it's a full nation program based on projects that structure and connect the entire national territory and will drive a visible transformation in each and every region, as you can see on this image, which is by no means exhaustive, as it reflects only the scope throughout the country. Investment in infrastructure is necessary, but it is also necessary in technology, digitalization, and new capabilities in a complex system where the priority remains secure supply.

[Translator 1]: We're also integrating new voltage control elements in the peninsula, and new synchronous compensators are being installed to reinforce the voltage regulation capacity and will guarantee operational stability in scenarios with high renewable penetration and lower system inertia. In sum, it's a full nation program based on projects that structure and connect the entire national territory and will drive a visible transformation in each and every region, as you can see on this image, which is by no means exhaustive, as it reflects only the scope throughout the country. Investment in infrastructure is necessary, but it is also necessary in technology, digitalization, and new capabilities in a complex system where the priority remains secure supply.

And new synchronous compensator are being installed to reinforce the voltage regulation capacity and will guarantee operational stability and scenarios with high renewable penetration in lower system and nourish them and some it's a full nation program.

Based on projects that structure and connect the entire national territory and will drive a visible transformation and each and every region as you can see on this image.

Which is by no means exhaustive as it reflects only the scope throughout the country investment in infrastructure is necessary, but it is also necessary in technology digitalization and new capabilities in a complex system, where the priority remains secure.

Beatriz Corredor: To achieve this, we have the best possible organizational framework, the TSO model, created in Spain precisely with Red Eléctrica 41 years ago, and then adopted by all European countries, as it is the most effective system in terms of management, the safest in terms of operation, and the most efficient in investment terms. Therefore, the new plan sets out an unprecedented level of investment, and this plan will be translated into new infrastructure. Between the years 25 and 30, we estimate that we will commission EUR 8.4 billion, which actually might reach EUR 9 billion, if processing procedures are streamlined as proposed by the EU and the Spanish government. Looking ahead into 31, virtually all the plan will have been implemented or underway, with a potential of up to EUR 11 billion in commissioning and execution.

[Translator 1]: To achieve this, we have the best possible organizational framework, the TSO model, created in Spain precisely with Red Eléctrica 41 years ago, and then adopted by all European countries, as it is the most effective system in terms of management, the safest in terms of operation, and the most efficient in investment terms. Therefore, the new plan sets out an unprecedented level of investment, and this plan will be translated into new infrastructure. Between the years 25 and 30, we estimate that we will commission EUR 8.4 billion, which actually might reach EUR 9 billion, if processing procedures are streamlined as proposed by the EU and the Spanish government. Looking ahead into 31, virtually all the plan will have been implemented or underway, with a potential of up to EUR 11 billion in commissioning and execution.

Supply to achieve this we have the best possible organizational framework. The T. S O muddle created in Spain precisely what drive electric at 41 years ago, and then adopted by all European countries. As it is the most effective system in terms of management.

The safest in terms of operation in the most efficient and investment terms there for the new plan sets out an unprecedented level of investment.

And this plan will be translated into new infrastructure between three years 25, and 30, we estimate that we will commission 8.4 billion euros, which actually might reach 9 billion euros as a processing procedures are streamlined as proposed by the E U.

And the Spanish government looking ahead into 'twenty 31, virtually all the plan will have been implemented or underway with a potential of up to 11 billion and commissioning and execution.

Beatriz Corredor: In sum, we're going from ambitious planning to solid execution capacity, with enough room to accelerate even further as the regulatory framework allows it. Going on to the international context, Brazil, Chile, and Peru are three of the most attractive electricity transmission markets in Latin America. Not only because they offer stable and predictable regulation framework, which is fundamental to guarantee legal certainty and long-term visibility for investment, but also because these countries have consolidated transmission models with centralized planning and transparent awarding processes, creating a favorable context for us to develop our transmission activity. As for telecommunications in Spain, which is the third fundamental pillar for Redeia, the industry has been undergoing a deep transformation process for years now. The consolidation of large operators and local operators continues in a context in which efficiency and scale play key roles in competitiveness, and certainly, cybersecurity has become an absolute priority.

[Translator 1]: In sum, we're going from ambitious planning to solid execution capacity, with enough room to accelerate even further as the regulatory framework allows it. Going on to the international context, Brazil, Chile, and Peru are three of the most attractive electricity transmission markets in Latin America. Not only because they offer stable and predictable regulation framework, which is fundamental to guarantee legal certainty and long-term visibility for investment, but also because these countries have consolidated transmission models with centralized planning and transparent awarding processes, creating a favorable context for us to develop our transmission activity. As for telecommunications in Spain, which is the third fundamental pillar for Redeia, the industry has been undergoing a deep transformation process for years now. The consolidation of large operators and local operators continues in a context in which efficiency and scale play key roles in competitiveness, and certainly, cybersecurity has become an absolute priority.

In sum, we're going from ambitious planning to solid execution capacity with enough room to accelerate even further as the regulatory framework allows it.

Going on to the international context of Brazil, Chile, and Peru are three of the most attractive electricity transmission markets in Latin America, not only because they offer a stable and predictable regulation framework, which is fundamental to guarantee legal certainty and long term visibility for investments but.

So because these countries have consolidated transmission models with centralized planning.

And transparent awarding processes, creating a favorable context for us to develop our transmission activity.

As for telecommunications in Spain, which is the third fundamental pillar for Libya.

The industry has been undergoing a deep transformation process for years now.

The consolidation of large operators and local operators continues in a context in which efficiency and scale play key roles and competitiveness and certainly cyber security has become an absolute priority networks require increasingly advanced measures to protect critical infrastructures in safeguard.

Beatriz Corredor: Networks require increasingly advanced measures to protect critical infrastructures and safeguard user data, a trend that will continue to intensify in the coming years. Another fundamental element is the rise of AI and automation, enabling networks in real time and significantly improving customer service, thus opening the door to new operating models. At the same time, the industry advances towards more sustainable networks with clear focus on energy efficiency and the reduction of carbon footprint, which is particularly relevant for operators with vast infrastructures over the territory. There is also a strong pace maintained in infrastructure development and sharing, which promotes efficiency and accelerates the availability of high-capacity services. A complex scenario that offers significant opportunities for Reintel, the leading provider for dark fiber in the country, from data centers and submarine cables to hyperscalers and the growing cloud ecosystem.

[Translator 1]: Networks require increasingly advanced measures to protect critical infrastructures and safeguard user data, a trend that will continue to intensify in the coming years. Another fundamental element is the rise of AI and automation, enabling networks in real time and significantly improving customer service, thus opening the door to new operating models. At the same time, the industry advances towards more sustainable networks with clear focus on energy efficiency and the reduction of carbon footprint, which is particularly relevant for operators with vast infrastructures over the territory. There is also a strong pace maintained in infrastructure development and sharing, which promotes efficiency and accelerates the availability of high-capacity services. A complex scenario that offers significant opportunities for Reintel, the leading provider for dark fiber in the country, from data centers and submarine cables to hyperscalers and the growing cloud ecosystem.

User data a trend that will continue to intensify in the coming years. Another fundamental element is the rise of AI and automation, enabling our networks in real time and significantly improving customer service, thus opening the door to new operating models.

At the same time, the industry advances towards more sustainable networks with clear focus on energy efficiency and the reduction of carbon footprint, which is particularly relevant for operators word as a bass the infrastructures over the territory.

There is also a strong pains maintained and infrastructure development, and sharing which promotes efficiency and accelerates the availability of high capacity services.

A complex scenario that offers significant opportunities for rental the leading provider for dark fiber in the country from data centers and submarine cables to hyperscale or send a growing cloud ecosystem.

Beatriz Corredor: The drive for technological innovation and digitalization will also be the focus of the group's technology platform, Elewit, which will emphasize on operational efficiency, security, and the maximization in the use of assets. To round up the framework that will surround the company in the coming years, it is important to convey the meaning behind this whole strategy plan, which determines each of our actions. I'm talking about our unshakable commitment for 2029. This commitment is a direct response to our context, a clear roadmap to drive energy transition based on neutrality, technical rigor, and innovation. A transition always guided by a deep sense of public service to add value to individuals, territories, nature, and biodiversity. This is a responsibility we take on to lead this change with vision, but also with facts and data.

[Translator 1]: The drive for technological innovation and digitalization will also be the focus of the group's technology platform, Elewit, which will emphasize on operational efficiency, security, and the maximization in the use of assets. To round up the framework that will surround the company in the coming years, it is important to convey the meaning behind this whole strategy plan, which determines each of our actions. I'm talking about our unshakable commitment for 2029. This commitment is a direct response to our context, a clear roadmap to drive energy transition based on neutrality, technical rigor, and innovation. A transition always guided by a deep sense of public service to add value to individuals, territories, nature, and biodiversity. This is a responsibility we take on to lead this change with vision, but also with facts and data.

The drive for technological innovation and digitalization will also be the focus of the group's technology platform, <unk>, which will emphasize on operational efficiency security and the maximization and their use of assets.

And to round up the framework.

That will surround the company in the coming years. It is a it is important to convey the meaning behind this whole strategy plan well.

Which determines each of our actions I'm talking about are unshakable commitment for 2029. This commitment is a direct response to our context, a clear roadmap to drive energy transition based on neutrality technical.

Rigor and innovation at transition always guided by a deep sense of public service.

To add value to individuals' territories nature and biodiversity. This is a responsibility we take on to lead this change what vision, but also with facts and data.

Beatriz Corredor: Our new sustainability plan that we're presenting to you today defines two major ambitions organized into seven strategy vectors and supported by five management levers that guide our actions. The framework will guide not only our decisions, it'll also make sure that each project, investment, and step forward will contribute to a more sustainable energy model and generates a positive impact on the environment. In short, we are presenting today the way to turn our commitment into results, and the way networks will become the true engine of sustainable transformation. For this purpose, we have set ambitious, measurable goals that cover the entire group, from promoting electrification and significantly reducing our emissions, to ensuring a positive impact on nature and promoting regional development, including extending sustainability criteria to our entire supply chain. We're also reinforcing innovation and digitalization, consolidating our ethical governance model, and moving towards increasingly sustainable funding.

[Translator 1]: Our new sustainability plan that we're presenting to you today defines two major ambitions organized into seven strategy vectors and supported by five management levers that guide our actions. The framework will guide not only our decisions, it'll also make sure that each project, investment, and step forward will contribute to a more sustainable energy model and generates a positive impact on the environment. In short, we are presenting today the way to turn our commitment into results, and the way networks will become the true engine of sustainable transformation. For this purpose, we have set ambitious, measurable goals that cover the entire group, from promoting electrification and significantly reducing our emissions, to ensuring a positive impact on nature and promoting regional development, including extending sustainability criteria to our entire supply chain. We're also reinforcing innovation and digitalization, consolidating our ethical governance model, and moving towards increasingly sustainable funding.

Our new sustainability plan that we're presenting to you today defined two major ambitions organized into sermon strategy vectors and supported by five management levers that guide our actions. The framework will guide not only are deficient and also make sure that each project investment and.

Forward will contribute to a more sustainable energy model and generates a positive impact on the environment in short we are presenting today the way to turn our commitment and to our results and the way networks will become the true engine of sustainable transformation.

For this purpose, we have set ambitious measurable goals that cover the entire group from promoting electrification and significantly reducing our emissions to ensuring a positive impact on nature and promoting regional development.

Including extending sustainability criteria to our entire supply chain.

We're also reinforcing innovation and digitalization consolidating our ethical governance model and moving towards increasingly sustainable funding together. These objectives enabled us to tackle the energy transition with rigor responsibility and clear foresight to ensure our growth.

Beatriz Corredor: Together, these objectives enable us to tackle the energy transition with rigor, responsibility, and clear foresight to ensure our growth that will always be accompanied by social and environmental value. For this purpose, we have our comprehensive impact strategy and a new social innovation plan. At Redeia, we understand the importance of dialogue and sustainable positioning as a key driver for management. That's how we understand this dialogue, not just as a mere matter of transparency, but also as a strategic tool to build trust, anticipate expectations, and position ourselves as a benchmark in sustainability, both nationally and internationally.

[Translator 1]: Together, these objectives enable us to tackle the energy transition with rigor, responsibility, and clear foresight to ensure our growth that will always be accompanied by social and environmental value. For this purpose, we have our comprehensive impact strategy and a new social innovation plan. At Redeia, we understand the importance of dialogue and sustainable positioning as a key driver for management. That's how we understand this dialogue, not just as a mere matter of transparency, but also as a strategic tool to build trust, anticipate expectations, and position ourselves as a benchmark in sustainability, both nationally and internationally.

That will always be accompanied by social and environmental value for this purpose, we have our comprehensive impact strategy and our new social innovation plan.

They are we understand the importance of dialogue and sustainable positioning as a key driver for management and that's how we understand this dialogue not just as a mere matter of transparency, but also as a strategic tool to build trust anticipate expectations and position ourselves as a benchmark and sustainability.

Both nationally and internationally and this is proven by our bottom line that shows our continued engagement because each of the assessment.

Beatriz Corredor: This is proven by our bottom line that shows our continued engagement, because each of the assessments we go through, from S&P Global to MSCI, measures not only our environmental, social, and governance performance, but also allows us to benchmark our practices against the best standards in the industry. Thanks to this active listening approach to our stakeholders, and thanks to our alignment with international best practices, and our commitment to sustainability, Redeia is now ranked at the top 1% of the world's most sustainable companies, according to S&P, and has once again obtained top ratings in key indicators such as the CDP's A List, among others. In sum, these results are not an end in themselves, but the natural consequence of a model based on transparency, rigor, and the conviction that sustainability is central to our value proposition.

[Translator 1]: This is proven by our bottom line that shows our continued engagement, because each of the assessments we go through, from S&P Global to MSCI, measures not only our environmental, social, and governance performance, but also allows us to benchmark our practices against the best standards in the industry. Thanks to this active listening approach to our stakeholders, and thanks to our alignment with international best practices, and our commitment to sustainability, Redeia is now ranked at the top 1% of the world's most sustainable companies, according to S&P, and has once again obtained top ratings in key indicators such as the CDP's A List, among others. In sum, these results are not an end in themselves, but the natural consequence of a model based on transparency, rigor, and the conviction that sustainability is central to our value proposition.

We go through from standard and Poor's global to MSCI measures not only our environmental social and governance performance, but also allows us to benchmark our practices against the best standards.

And the industry and thanks to this active lessening approach to our stakeholders and thanks to our alignment with international best practices and our commitment to sustainability Ray Bay is now ranked at the top 1% of the world's most sustainable companies. According to S&P and has.

Once again obtained top ratings in key indicators, such as the Cdp's a list among others.

In some these are resolved or not and then then themselves, but the natural consequence of our model based on transparency rigor and the conviction that sustainability is central to our value proposition. We will continue to reinforce this position through open constructive in constant dialogue with all of our shareholders.

Beatriz Corredor: We will continue to reinforce this position through open, constructive, and constant dialogue with all of our shareholders, so that we can continue to move forward in credibility and leadership. I will now give the floor back to Roberto García Merino, our CEO, for a deeper explanation on our strategy for the period.

[Translator 1]: We will continue to reinforce this position through open, constructive, and constant dialogue with all of our shareholders, so that we can continue to move forward in credibility and leadership. I will now give the floor back to Roberto García Merino, our CEO, for a deeper explanation on our strategy for the period.

So that we can continue to move forward and credibility and leadership I would now give the floor back to Roberto Garcia Merino R. A C E O for a deeper explanation on our strategy for the period.

Emilio Cerezo: Thank you very much. Now that we've analyzed this, economic and sectoral context, I'm going to talk to you now about the new strategic plan for Redeia to the period 2029. This plan seeks to promote the energy model and connectivity of the future, generating a positive impact on climate change, nature, territory, and people. The strategy 2026-2029 that we're showing you here is a decisive step to consolidate our leadership and make sure that we have a robust electric system, that is prepared for decarbonization, reinforcing the essential role that energy transmission plays in the energy transition, as well as offering a reliable and technically advanced fiber optic network that will contribute to bridge the digital divide.

[Translator 2]: Thank you very much. Now that we've analyzed this, economic and sectoral context, I'm going to talk to you now about the new strategic plan for Redeia to the period 2029. This plan seeks to promote the energy model and connectivity of the future, generating a positive impact on climate change, nature, territory, and people. The strategy 2026-2029 that we're showing you here is a decisive step to consolidate our leadership and make sure that we have a robust electric system, that is prepared for decarbonization, reinforcing the essential role that energy transmission plays in the energy transition, as well as offering a reliable and technically advanced fiber optic network that will contribute to bridge the digital divide.

Thank you very much know, though we've analyzed.

It is economic and sectorial context, I'm going to talk to you now about the new strategic plan for a day after a period of 'twenty 'twenty nine. This time seeks to promote then is your model and connectivity of the future generating a positive impact on climate change nature territory and people.

The strategy 26, 29 that we're showing you here is a decisive step to consolidate our leadership and make sure that we have a robust electric system that is prepared for decarbonization reinforcing the essential role that energy transmission plays and the earnings energy transition as well as well.

Freeing our reliable and technically advanced fiber optic network that will contribute to bridge the digital divide.

Emilio Cerezo: In this regard, the plan focuses on a strong development of regulated activity in Spain, and therefore, it is our fundamental commitment for our company that more than 90% of our investment are allocated to transport and operation. This reflects our top priority for developing electricity planning, optimizing system operation, and ensuring supply quality in a rapidly changing environment. At the same time, Redeia will continue to consolidate its international and telecommunications activities, which provide stability and long-term value. The strategy also focuses on operational efficiency, innovation, digitalization. These are key elements for a more demanding and decarbonized system. Similarly, attracting and retaining diverse talent becomes an essential pillar for successfully addressing the challenges facing the electric sector. Overall, this plan reinforces Redeia's mission to promote a sustainable and reliable, and a future-proof electricity system, providing shared value to society.

[Translator 2]: In this regard, the plan focuses on a strong development of regulated activity in Spain, and therefore, it is our fundamental commitment for our company that more than 90% of our investment are allocated to transport and operation. This reflects our top priority for developing electricity planning, optimizing system operation, and ensuring supply quality in a rapidly changing environment. At the same time, Redeia will continue to consolidate its international and telecommunications activities, which provide stability and long-term value. The strategy also focuses on operational efficiency, innovation, digitalization. These are key elements for a more demanding and decarbonized system. Similarly, attracting and retaining diverse talent becomes an essential pillar for successfully addressing the challenges facing the electric sector. Overall, this plan reinforces Redeia's mission to promote a sustainable and reliable, and a future-proof electricity system, providing shared value to society.

In this regard the plan focuses on a strong development of regulatory activity in Spain, and therefore, it is our fundamental commitment for a company that more than 90% of our investments are allocated to transport and operation. This reflects our top priority for developing electricity planning optimizing system operation.

<unk> and ensuring supply quality in a rapidly changing environments at the same time or there will continue to consolidate its international and telecommunications activities, which provides stability and long term value. This strategy also focuses on operational efficiency innovation digitalization.

And these are key elements for a more demanding and decarbonize system, similarly, attracting and retaining diverse talent becomes an essential pillar for successfully addressing the challenges facing the electric sector.

Overall, this plan reinforces where theres mission to promote a sustainable and reliable.

And the future proof electricity system, providing share value to society.

Emilio Cerezo: Today, we present an ambitious investment horizon, total EUR 6.5 billion, of which EUR 6 billion will be allocated to domestic transport activity. This brings us to a historic level of investment of TSO, with an average annual investment of EUR 1.5 billion, which is 70% higher than the average annual investment from the previous strategic plans from 2021 to 2025. If we consider the EUR 6 billion in investment that will be executed in the period 2026 to 2029, as well as the investment that took place in the year 2025, and what will be taking place after this plan throughout the years of third, 2030 and 2031, the total amount of investment will reach levels close to those considered in the draft from 2025 to 2030.

[Translator 2]: Today, we present an ambitious investment horizon, total EUR 6.5 billion, of which EUR 6 billion will be allocated to domestic transport activity. This brings us to a historic level of investment of TSO, with an average annual investment of EUR 1.5 billion, which is 70% higher than the average annual investment from the previous strategic plans from 2021 to 2025. If we consider the EUR 6 billion in investment that will be executed in the period 2026 to 2029, as well as the investment that took place in the year 2025, and what will be taking place after this plan throughout the years of third, 2030 and 2031, the total amount of investment will reach levels close to those considered in the draft from 2025 to 2030.

Today, we present, an ambitious investment horizon totaled $6 5 billion euros of which 6 billion will be allocated to domestic transport activity.

This brings us to a historic level of investment took tier so with an average annual investment of 1.5 billion, which is 70% higher than the average annual investment from the previous strategic plans around 'twenty one 'twenty five.

If we consider these 6 billion in investment that will be executed in the period of 26 29 I was one of the investment that took place in the year of 25, and what will be taking place.

After this plan throughout the years observed 2030, and 21, the total amount of investment will reach levels close to those considered in the dropped from 25 to 2030 Likewise, our film alignment with the European Union's climate and sustainability objectives.

Emilio Cerezo: Likewise, our firm alignment with the European Union's climate and sustainability objectives also reflects that the fact that 100% of the TSO investments are eligible under European taxonomy. We expect the transport part of Spain should increase very much, a significant growth it should have, and the most important thing is submarine interconnection in the Bay of Biscay, as well as the deployment of another 400 kilovolts, that will connect different regions or various regions, along with installation of synchronous compensators in the Peninsular, Balearic, and Canary Islands systems, as well as the Salto de Chira project. Together, these actions will enable the company's RAB to be EUR 12 billion in 2029, and it should grow more than 35% throughout this period, reaching EUR 14.4 billion.

[Translator 2]: Likewise, our firm alignment with the European Union's climate and sustainability objectives also reflects that the fact that 100% of the TSO investments are eligible under European taxonomy. We expect the transport part of Spain should increase very much, a significant growth it should have, and the most important thing is submarine interconnection in the Bay of Biscay, as well as the deployment of another 400 kilovolts, that will connect different regions or various regions, along with installation of synchronous compensators in the Peninsular, Balearic, and Canary Islands systems, as well as the Salto de Chira project. Together, these actions will enable the company's RAB to be EUR 12 billion in 2029, and it should grow more than 35% throughout this period, reaching EUR 14.4 billion.

Reflects but the fact that 100% of the tiers. So investments are eligible under European Tech sector to me.

Therefore, we expect the transport.

Part of spending should increase very much.

And if we can grow so should have and the most important thing is submarine interconnection in the bay of bis gain as well as the deployment of another 400 kilo volts.

But that will connect different regions of various regions along with the installation of synchronous.

Comprehensive to compensate or is in the peninsula, Balearic and Canary Islands systems I was one of the cell dose. The Chita project together. These actions will enable the company's Rob to be 12 billion euros in 2029 and that should grow more than 35% throughout this period, reaching 14.4 billion.

Emilio Cerezo: If we bury or take into account the more than EUR 2 billion of the Work in Progress that we'll put up to service in the subsequent years. From another perspective, it's clear that we are facing the challenge of developing the necessary infrastructure to be able to achieve decarbonization in a highly competitive and saturated market environment. It is therefore essential to ensure the availability of the supplies and services that are needed to address the development of the TSO at a reasonable cost. However, the visibility that we have on investments for the upcoming years allows us to anticipate and take measures that significantly reduce the execution risks.

[Translator 2]: If we bury or take into account the more than EUR 2 billion of the Work in Progress that we'll put up to service in the subsequent years. From another perspective, it's clear that we are facing the challenge of developing the necessary infrastructure to be able to achieve decarbonization in a highly competitive and saturated market environment. It is therefore essential to ensure the availability of the supplies and services that are needed to address the development of the TSO at a reasonable cost. However, the visibility that we have on investments for the upcoming years allows us to anticipate and take measures that significantly reduce the execution risks.

Euros, if we Barry or take into account the more than 2 billion of the work in process that we put up to surface in the subsequent years.

From another perspective, it's clear that we are facing the challenge of developing the necessary infrastructure to be able to achieve decarbonization and a highly competitive and saturated market environment. It is therefore essential to ensure the availability of the supplies and services that are needed to address the development of the tiers, so what's a reasonable cost.

However, the visibility that we have on investments for the upcoming years allows us to anticipate and take measures that significantly reduce the execution risks.

Emilio Cerezo: Actions such as conducting comprehensive risk assessment, which has enabled us to design new purchasing strategies adapted to a more demanding industrial context, and also entering into medium and long-term framework agreements, which provide stability in prices, terms, and volumes, as well as executing commodity hedges to stabilize the cost of the more sensitive equipments, are becoming fundamental to our business. Thanks to all of this, we already have more than 70% of our strategic supplies guaranteed up till 2029. All of this. However, all of this investment would not make any sense unless we had a stable regulation behind it, and we believe that we now have good visibility and stability for the company in the next 6 years. As it is already well known, the new methodology guarantees a return of investment of 6.58%.

[Translator 2]: Actions such as conducting comprehensive risk assessment, which has enabled us to design new purchasing strategies adapted to a more demanding industrial context, and also entering into medium and long-term framework agreements, which provide stability in prices, terms, and volumes, as well as executing commodity hedges to stabilize the cost of the more sensitive equipments, are becoming fundamental to our business. Thanks to all of this, we already have more than 70% of our strategic supplies guaranteed up till 2029. All of this. However, all of this investment would not make any sense unless we had a stable regulation behind it, and we believe that we now have good visibility and stability for the company in the next 6 years. As it is already well known, the new methodology guarantees a return of investment of 6.58%.

I chose her chose conducting comprehensive risk assessment, which has enabled us to design new purchasing strategy has adapted to a more demanding industrial context, and also entering into medium and long term framework agreements, which provides stability in prices and volumes as well as executing commodity.

The hedges to stabilize the cost of the most sensitive equipments.

Becoming fundamental to our business strengths all of this we already have more than 70% of our strategic supplies guaranteed up till 2029.

All of this however, all of this investment would not make any sense unless we had the stable regulation behind it and we believe that we now have good visibility and stability for the company in the next six years.

After all it's already well known the new methodology guarantees a return of investment of $6, 58%. In addition unit values have been updated both for Capex with an average increase of six 4% as well as operation and maintenance in this case, an adjustment of 13, 4%.

Emilio Cerezo: In addition, unit values have been updated both for CapEx, with an average increase of 6.4%, as well as operation and maintenance. In this case, an adjustment of 13.4% for maintenance income compared to the previous period. It is worthy to note that we've taken our first steps towards recognizing work in progress for unique facilities, with amounts invested prior to the year and the commissions being recognized and capitalized for up to five years at the cost of debt, and that includes the calculation of the financial remuneration rate. In our continuous effort to generate value for our shareholders, we can say that the pursuit of operational efficiency and managing leverage and financial costs will enable us to achieve a return on equity of at least 9%.

[Translator 2]: In addition, unit values have been updated both for CapEx, with an average increase of 6.4%, as well as operation and maintenance. In this case, an adjustment of 13.4% for maintenance income compared to the previous period. It is worthy to note that we've taken our first steps towards recognizing work in progress for unique facilities, with amounts invested prior to the year and the commissions being recognized and capitalized for up to five years at the cost of debt, and that includes the calculation of the financial remuneration rate. In our continuous effort to generate value for our shareholders, we can say that the pursuit of operational efficiency and managing leverage and financial costs will enable us to achieve a return on equity of at least 9%.

For maintenance income compared to the previous period.

It is worthy to note we've taken our first steps towards who recognize a work in progress.

Four unique facilities with amounts invested prior to the year oak on the commissions be recognizing capitalized for up to five years of the cost of debt and that includes the calculation of the financial remuneration rate.

In a continuous effort to generate value for our shareholders. We can say that through the pursuit of operational efficiency and managing leverage and financial costs will enable us to achieve a return on equity of at least 9%.

Emilio Cerezo: Although our activity will be focused on the transport business in Spain in 2026, we will also 2026 to 2029, we will also maintain an investment plan of EUR 150 million internationally, focused on strengthening and expanding transport networks in Brazil, Chile, and Peru. In this way, we consolidate our presence in these regions and increase our future options. We will also continue to invest in our dark fiber business, a market in which we are a leader, thanks to having a stable, predictable model and a long-term focus. Throughout the period 2026, 2029, we will invest about EUR 110 million, mainly aimed at strengthening our network, expanding capacities, and meeting the demanding growth for high quality connectivity.

[Translator 2]: Although our activity will be focused on the transport business in Spain in 2026, we will also 2026 to 2029, we will also maintain an investment plan of EUR 150 million internationally, focused on strengthening and expanding transport networks in Brazil, Chile, and Peru. In this way, we consolidate our presence in these regions and increase our future options. We will also continue to invest in our dark fiber business, a market in which we are a leader, thanks to having a stable, predictable model and a long-term focus. Throughout the period 2026, 2029, we will invest about EUR 110 million, mainly aimed at strengthening our network, expanding capacities, and meeting the demanding growth for high quality connectivity.

Although.

Our activity will be focused on the transport business in Spain in 2020 six we will also 26 to 29, we will also maintain an investment plan over 150 million internationally focused on strengthening and expanding transport networks in Brazil, Chile, and Peru in this way we consolidate our presence in these.

Once an increase.

Okay.

Our future auctions, we will also continue to invest in our dark fiber business a market in which we are a leader thanks to having a stable predictable model and our long term focus.

Throughout the period 26, 13 room, we will invest about 110 million euros, mainly aimed at strengthening our network expanding capacities and meeting the demanding growth for high quality connectivity.

Emilio Cerezo: Our objectives for this period are focused on four main areas: maintaining our position as a leading provider, strengthening relationships with strategic customers, capturing new business opportunities, and develop emerging business associated to the cloud and the high performance computing. Also, we will continue to explore alliances with strategic partners that will allow us to expand our reach and reinforce our role as an essential part of the country's digital infrastructure. Another significant aspect is the technical innovation and digitalization, which are essential for driving the group's efficiency, especially in TSO. From at Elewit, we are developing solutions to optimize processes, strengthen security of supply, and increase the use of our assets. Between 2026 and 2029, we will allocate EUR 40 million to projects that support the investment plan and prepare our networks for the energy transition.

[Translator 2]: Our objectives for this period are focused on four main areas: maintaining our position as a leading provider, strengthening relationships with strategic customers, capturing new business opportunities, and develop emerging business associated to the cloud and the high performance computing. Also, we will continue to explore alliances with strategic partners that will allow us to expand our reach and reinforce our role as an essential part of the country's digital infrastructure. Another significant aspect is the technical innovation and digitalization, which are essential for driving the group's efficiency, especially in TSO. From at Elewit, we are developing solutions to optimize processes, strengthen security of supply, and increase the use of our assets. Between 2026 and 2029, we will allocate EUR 40 million to projects that support the investment plan and prepare our networks for the energy transition.

Our objectives for this period are focused on four main areas, maintaining our position as a leading provider strengthening relationships with strategic customers, capturing new business opportunities and develop emerging business associated to the cloud and the high performance computing.

Oh, So we will continue to explore alliances with strategic strategic partners that will allow us to expand our reach and reinforce our role as an essential part of the country's digital infrastructure. Another significant aspect is the technical.

Innovation, and digitalization, which are essential for driving the group's efficiency, especially in tier one.

From a L, which we are developing solutions that optimize processes.

The security of supply and increase the use of our assets between 2006 and 2029, we will allocate four 2 million two projects that support the investment plan and prepare our networks for the energy transition.

Emilio Cerezo: For us, innovation is a key lever to ensure a safer, more efficient, and future-proof system. Now, let's focus on the evolution of our economic indicators. Looking ahead to up to 2029, these are the direct reflection of a company that is prepared to face an unprecedented investment cycle, capable of maintaining sustained growth with a greater focus on management and financial discipline. Therefore, we estimate EBITDA growth during the period at a rate which is above 5% per annum, and as far as the net benefit is concerned, that growth will be about 3%. The significant growth of the net debt is directly linked to the investment rollout that is contemplated in the plan.

[Translator 2]: For us, innovation is a key lever to ensure a safer, more efficient, and future-proof system. Now, let's focus on the evolution of our economic indicators. Looking ahead to up to 2029, these are the direct reflection of a company that is prepared to face an unprecedented investment cycle, capable of maintaining sustained growth with a greater focus on management and financial discipline. Therefore, we estimate EBITDA growth during the period at a rate which is above 5% per annum, and as far as the net benefit is concerned, that growth will be about 3%. The significant growth of the net debt is directly linked to the investment rollout that is contemplated in the plan.

For US innovation is a key lever to ensure a safer more efficient in the.

Future proof system.

Now, let's focus on the evolution of our economic indicators looking I hate to up to 2029. These are the direct reflection over company that is prepared to face an unprecedented investment cycle capable of maintaining sustained growth with a greater focus on management and financial discipline.

Therefore, we estimate it is to grow stupid.

<unk>, which is about 5% per annum and as far as the net benefit is concerned that growth will be about 3%.

The significant growth of the net debt is directly linked to the investment rule out but it is contemplated in the plan. Even so we continue to have a robust financial profile with ratios that will allow us to preserve a solid.

Emilio Cerezo: Even so, we continue to have a robust financial profile with ratios that will allow us to preserve a solid credit rating and continue to access financing in a competitive form and terms. As far as shareholder remuneration, we've established a dividend policy that assumes an annual growth of 2% until it reaches EUR 0.87 per share in 2029, ensuring sustainable and consistent growth in a context of historical investments for the group. The regulated business continues to be one of our most important cornerstones of results. 90% of the group's EBITDA comes from this activity, which gives us stability, predictability, and a solid foundation for our future growth.

[Translator 2]: Even so, we continue to have a robust financial profile with ratios that will allow us to preserve a solid credit rating and continue to access financing in a competitive form and terms. As far as shareholder remuneration, we've established a dividend policy that assumes an annual growth of 2% until it reaches EUR 0.87 per share in 2029, ensuring sustainable and consistent growth in a context of historical investments for the group. The regulated business continues to be one of our most important cornerstones of results. 90% of the group's EBITDA comes from this activity, which gives us stability, predictability, and a solid foundation for our future growth.

Credit rating and continue to access financing in a competitive for them in terms as far as shareholder remuneration. We've established a dividend policy that assumes an annual growth of 2% until it reaches zero point 87 per share in 2029, ensuring sustainable and consistent.

Gross in a context of historical investments for the group.

The regulated business continues to be.

One of our most important corner stores are resolved so 90% of the groups of Victor comes from this activity, which gives us stability predictability and a solid foundation for future growth.

Emilio Cerezo: The weight of the TSO will increase in the next coming years, driving the EBITDA growth, which will grow at a rate above 5% per annum throughout that period, reflecting our capacity to execute strategic investment, maintain operational efficiency, and advance in the energy transition of the electric system. Now that we have presented the fundamental plans of our strategic plan, we will take a closer look at our financial objectives and the roadmap to be able to achieve them. Now I'd like to give the floor to Emilio Cerezo. Thank you.

[Translator 2]: The weight of the TSO will increase in the next coming years, driving the EBITDA growth, which will grow at a rate above 5% per annum throughout that period, reflecting our capacity to execute strategic investment, maintain operational efficiency, and advance in the energy transition of the electric system. Now that we have presented the fundamental plans of our strategic plan, we will take a closer look at our financial objectives and the roadmap to be able to achieve them. Now I'd like to give the floor to Emilio Cerezo. Thank you.

The way to the GSO will increase in the next coming years.

Driving the growth, which will grow at a rate of about 5% per annum throughout that period, reflecting our.

Capacity to execute strategic investments maintain operational efficiency and it runs in the energy transition of the electric system.

And now that represented the final fundamental plans Oh of our strategic plan, we will take a closer look at our financial objectives, and the roadmap to be able to achieve them. So now I'd like to give the floor to Emilio today. So thank you Jonathan vertical thank you Roberto.

Beatriz Corredor: Thank you, Roberto. As we all understand, in coming years, we will see a decisive boost in the development of electricity transmission network, with an average annual investment of EUR 1.5 billion in the TSO. In other words, about EUR 6 billion over the entire period. This investment will mean that by the end of 2029, the RAB plus work in progress will be located at EUR 14.4 billion, or a 30% increase compared to the end of 2025. At the end of 2025, the TSO RAB will exceed EUR 12 billion, EUR 11.4 billion from transport and EUR 600 million from Salto de Chiloé, or an increase of EUR 3.1 billion compared to 2025. Focusing on the transmission grid, at those EUR 11.4 billion in RAB will represent an average annual increase of 6.4%.

[Translator 2]: Thank you, Roberto. As we all understand, in coming years, we will see a decisive boost in the development of electricity transmission network, with an average annual investment of EUR 1.5 billion in the TSO. In other words, about EUR 6 billion over the entire period. This investment will mean that by the end of 2029, the RAB plus work in progress will be located at EUR 14.4 billion, or a 30% increase compared to the end of 2025. At the end of 2025, the TSO RAB will exceed EUR 12 billion, EUR 11.4 billion from transport and EUR 600 million from Salto de Chiloé, or an increase of EUR 3.1 billion compared to 2025. Focusing on the transmission grid, at those EUR 11.4 billion in RAB will represent an average annual increase of 6.4%.

And so we all understand in coming years, we will see at the size of boost and the development of electricity transmission network with an average annual investment of $1 5 billion and the T. S. O in other words about 6 billion over the entire period.

This investment will mean that by the end of 2029. They are a b plus work in progress will be located at 14 point for a billion or a 30% increase compared to the end of 2025.

At the end of 2025, the T. S O R. A b well exceed 12 billion 11.4 billion from a transport and 600 million from Feltl, the cheetah or an increase of 3.1 billion euros compared to 2025.

Focusing on the transmission grid.

Those 11.4 billion and our a b well represent an average annual increase of 6.4%. Likewise at the end of 'twenty nine electric I will have a significant volume of work in progress for projects that will be commissioned in subsequent years.

Beatriz Corredor: Likewise, at the end of 2029, Red Eléctrica will have a significant volume of work in progress for projects that will be commissioned in subsequent years. On the left-hand side of this slide, we break down the evolution of the transmission RAB from EUR 8.9 billion at the end of 2025 to EUR 11.4 billion at the end of 2029. The transmission network RAB will grow by EUR 2.5 billion as a result of the significant volume of commissioning of EUR 4.4 billion, already net of subsidies, partially offset by the amortization of EUR 1.6 billion of RAB, derived from the operation of the remuneration model. On the right side of the slide, we show the evolution of work in progress, expected to grow by EUR 600 million, as transport investments will exceed the aforementioned commissioning operations of EUR 4.4 billion.

[Translator 2]: Likewise, at the end of 2029, Red Eléctrica will have a significant volume of work in progress for projects that will be commissioned in subsequent years. On the left-hand side of this slide, we break down the evolution of the transmission RAB from EUR 8.9 billion at the end of 2025 to EUR 11.4 billion at the end of 2029. The transmission network RAB will grow by EUR 2.5 billion as a result of the significant volume of commissioning of EUR 4.4 billion, already net of subsidies, partially offset by the amortization of EUR 1.6 billion of RAB, derived from the operation of the remuneration model. On the right side of the slide, we show the evolution of work in progress, expected to grow by EUR 600 million, as transport investments will exceed the aforementioned commissioning operations of EUR 4.4 billion.

On the left hand side of this slide we break down the evolution of the transmission or a b from 8.9 billion at the end of 'twenty five to 11.4 billion at the end of 'twenty nine.

The transmission network or a b will grow by 2.5 billion as a result of the significant volume of commissioning a 4.4 billion.

Ready net of subsidies, partially offset by the amortization of $1 6 billion of our a b derived from the operation of the Raymond ration model.

And on the right side of the slide we show the evolution of work in progress expected to grow by 600 million as transport investment will exceed the aforementioned commissioning operations, a 4.4 billion euros.

Beatriz Corredor: To run this plan with maximum solvency, we've designed a solid, diversified financial structure, allowing us to run the investment plan without increasing capital. Over the course of the next few years in our strategy plan, we will have funding requirements of approximately EUR 9.4 billion, mostly derived from the significant volume of investments that we've been mentioning, along with the payout of dividends to our shareholders. As you can observe on the left-hand side of the slide, these EUR 9.4 billion will be funded through the FFO we will generate, the collection of subsidies and a new financial debt contract. First of all, there is the solid generation of operating cash flow, which continues to be one of the group's trademarks.

[Translator 2]: To run this plan with maximum solvency, we've designed a solid, diversified financial structure, allowing us to run the investment plan without increasing capital. Over the course of the next few years in our strategy plan, we will have funding requirements of approximately EUR 9.4 billion, mostly derived from the significant volume of investments that we've been mentioning, along with the payout of dividends to our shareholders. As you can observe on the left-hand side of the slide, these EUR 9.4 billion will be funded through the FFO we will generate, the collection of subsidies and a new financial debt contract. First of all, there is the solid generation of operating cash flow, which continues to be one of the group's trademarks.

To Ron Best land with maximum solvency, we've designed a solid diversified financial structure, allowing us to run the investment plan without increasing capital.

Over the course of the next few years in our strategy plan, we will have funding requirement of approximately $9 4 billion, mostly derived from the significant volume of investments of with been mentioning all along with the payout of dividends to our shareholders.

As you can observe on the left.

Hand side of the slide these 9.4 billion will be funded through the S. F O. We will generate the collection of subsidies.

The new financial debt contract.

First of all there's the solid generation of operating cash flow, which continues to be one of the groups trademarks.

Beatriz Corredor: Likewise, the collection of subsidies in connection with strategy projects will account for 14% of the sources of financing. The amount to be received will be approximately EUR 1.3 billion, and most of it will be collected between 2026 and 2027. Finally, using our solid credit rating, we will finance over EUR 3.8 billion via debt, which represent 41% of these EUR 9.4 billion in funding requirements. New financial debt will be raised by diversified and competitive access to financing markets. In this context, and during the term of the strategic plan, we plan to issue EUR 1.5 billion in hybrid bonds or 16% of our new sources of financing.

[Translator 2]: Likewise, the collection of subsidies in connection with strategy projects will account for 14% of the sources of financing. The amount to be received will be approximately EUR 1.3 billion, and most of it will be collected between 2026 and 2027. Finally, using our solid credit rating, we will finance over EUR 3.8 billion via debt, which represent 41% of these EUR 9.4 billion in funding requirements. New financial debt will be raised by diversified and competitive access to financing markets. In this context, and during the term of the strategic plan, we plan to issue EUR 1.5 billion in hybrid bonds or 16% of our new sources of financing.

Likewise, the collection of subsidies in connection with strategy projects will account for 14, one 4% of the sources of financing the amount to be received will be approximately $1 3 billion euros and most of it will be collected between 2020 six and 2027.

Finally.

Using our solid credit rating, we will finance over 3.8 billion via debt, which represent 41% of these 9.4 billion euros and funding requirements.

No financial debt will be raised by diversified and competitive access to financing markets in this context than during the term of the strategic plan. We plan to issue 1.5 billion in hybrid bonds or 16% of our new sources of financing.

Yeah.

Beatriz Corredor: Our financing structure evolves towards an even more diversified, competitive model, with greater weight of hybrid instruments, which at the end of the strategy plan will amount to EUR 2 billion. In 2029, the average maturity of debt will be 4 years, and the cost of debt will be 3%. Our competitive average cost of funding during the term of the strategic plan, which we estimate to be around 2.8%, along with the group's leverage capacity, are vectors for creating value for our shareholders in the future. Moreover, we have a strong liquidity position at the end of 2025, reaching EUR 3.3 billion. As for currencies, we will continue to maintain a very significant weight of our funding in euros.

[Translator 2]: Our financing structure evolves towards an even more diversified, competitive model, with greater weight of hybrid instruments, which at the end of the strategy plan will amount to EUR 2 billion. In 2029, the average maturity of debt will be 4 years, and the cost of debt will be 3%. Our competitive average cost of funding during the term of the strategic plan, which we estimate to be around 2.8%, along with the group's leverage capacity, are vectors for creating value for our shareholders in the future. Moreover, we have a strong liquidity position at the end of 2025, reaching EUR 3.3 billion. As for currencies, we will continue to maintain a very significant weight of our funding in euros.

Our financing structure evolves towards an even more diversified competitive model with greater weight of hybrid instrument, which at the end of the strategy plan will amount to 2 billion euros.

In 2029, the average maturity of debt will be four years and the cost of debt will be 3%.

Our competitive average cost of funding during the term of the strategic plan, which we estimate to be around 2.8% along with the group's leverage capacity or vectors for creating value for our shareholders in the future.

Moreover, our we have a strong liquidity position at the end of 2020 five.

Reaching 3.3 billion euros as for currencies, we will continue to maintain a very significant weight of our funding in euros at the same time, we would like to stress that we're taking decisive steps towards reaching 100% sustainable financing by 2030, they're viable.

Beatriz Corredor: At the same time, we would like to stress that we're taking decisive steps towards reaching 100% sustainable financing by 2030, thereby reinforcing our commitment to the energy transaction, transition and best practices in the market. The financial ratios we have set as targets for the period, ensure a financial profile compatible with robust credit rating. These ratio commitments are head and shoulders above some of our European peers. FFO to net debt will be above 14%. Net debt to EBITDA will remain below 5.5x, and net debt to RAB will remain below 60%. Together, these ratios confirm the sustainability of our growth and our financial discipline. I will now give the floor to our Chief Executive Officer to continue with the main conclusions.

[Translator 2]: At the same time, we would like to stress that we're taking decisive steps towards reaching 100% sustainable financing by 2030, thereby reinforcing our commitment to the energy transaction, transition and best practices in the market. The financial ratios we have set as targets for the period, ensure a financial profile compatible with robust credit rating. These ratio commitments are head and shoulders above some of our European peers. FFO to net debt will be above 14%. Net debt to EBITDA will remain below 5.5x, and net debt to RAB will remain below 60%. Together, these ratios confirm the sustainability of our growth and our financial discipline. I will now give the floor to our Chief Executive Officer to continue with the main conclusions.

Reinforcing our commitment to the energy transaction transition and our best practices in the market and financial ratios. So we have set as targets for the period ensure our financial profile compatible with robust credit rating. These ratio commitments are head and shoulders above some of our Europe.

P M peers.

<unk> to net debt will be above 14% net debt to EBITDA will remain below five five times and net debt to our a b will remain below 60%.

Yeah.

Together these ratios confirm the sustainability of our growth and our financial discipline I will now give the floor to our chief Executive officer to continue with the main conclusions. Thank you very much and media and took them through this presentation I'd like to summarize the key messages and define a strategic plan 2026.

Emilio Cerezo: Thank you very much, Emilio. To conclude this presentation, I'd like to summarize the key messages that define our strategic plan, 2026 to 2029, and the path for growth that we have built for the upcoming years. In this area, 2025 to 2029, Redeia is undertaking the most ambitious investment cycle in its history, with a total of EUR 6.5 billion, which is a figure that reflects our firm commitment to energy transition. A large part of these investments are aimed at expanding and modernizing the transmission network to meet the growing needs of electricity system, the massive integration of renewable energies, electrification of the economy, and structural improvement of, and resilience of our infrastructure.

[Translator 2]: Thank you very much, Emilio. To conclude this presentation, I'd like to summarize the key messages that define our strategic plan, 2026 to 2029, and the path for growth that we have built for the upcoming years. In this area, 2025 to 2029, Redeia is undertaking the most ambitious investment cycle in its history, with a total of EUR 6.5 billion, which is a figure that reflects our firm commitment to energy transition. A large part of these investments are aimed at expanding and modernizing the transmission network to meet the growing needs of electricity system, the massive integration of renewable energies, electrification of the economy, and structural improvement of, and resilience of our infrastructure.

The path for growth that we have built for the upcoming years.

This area 2025 29.

Regalia is undertaking the most ambitious investment cycle in its history with a total of $6 5 billion, which is a figure that reflects our firm commitment to energy transition.

A large part of these investments are aimed at expanding and modernizing the transmission network to meet the growing needs of electricity system.

Also a integration of renewable energies electrification of the economy and structural improvement and resilience of our infrastructure. All of this results in a significant increase of our a b or 35%.

Emilio Cerezo: All of this results in a significant increase of RAB of 35%, that reflecting the expansion of the network, a new commissioning reaching EUR 12 billion at the end of 2029, rising to EUR 14.5 billion, if we consider estimated work in progress at the end of the plan.

[Translator 2]: All of this results in a significant increase of RAB of 35%, that reflecting the expansion of the network, a new commissioning reaching EUR 12 billion at the end of 2029, rising to EUR 14.5 billion, if we consider estimated work in progress at the end of the plan.

But reflecting the expansion of the network a new commissioning, reaching 12 billion at the end of 'twenty 'twenty nine rising to 14.5 billion. If we consider estimated work in progress at the end of the plan.

Beatriz Corredor: This investment effort is accompanied by a solid and responsible financial policy, highlighting that this plan will be financed using international financing alternatives without the need to increase capital, thus preserving stability for our shareholders and reinforcing the financial discipline that characterizes us. In addition, we maintain a policy of increasing sustainable dividends with an annual growth of 2% throughout the year, which will take it to EUR 0.87 per share in 2029. This reflects an appropriate balance between investment, financial strength, and attractive shareholder results. Last but not least, I would like to highlight that the growth of our regulated assets will be the cornerstone of the group's value creation, reflecting an increase of a EBITDA and the group profit for that period of time. Furthermore, we look beyond this period covering our strategic plan.

[Translator 2]: This investment effort is accompanied by a solid and responsible financial policy, highlighting that this plan will be financed using international financing alternatives without the need to increase capital, thus preserving stability for our shareholders and reinforcing the financial discipline that characterizes us. In addition, we maintain a policy of increasing sustainable dividends with an annual growth of 2% throughout the year, which will take it to EUR 0.87 per share in 2029. This reflects an appropriate balance between investment, financial strength, and attractive shareholder results. Last but not least, I would like to highlight that the growth of our regulated assets will be the cornerstone of the group's value creation, reflecting an increase of a EBITDA and the group profit for that period of time. Furthermore, we look beyond this period covering our strategic plan.

This investment effort is accompanied by a solid and responsible financial policy highly.

Highlighting that this plan will be financed using international financing alternatives without the need to increase capital, thus preserving stability for our shareholders and reinforcing the financial discipline that characterizes us. In addition, we maintain a policy of increasing our sustainable dividend with an annual goals.

2% throughout the year, which will take it to zero point 87 euros or the.

For sure in 2029, this reflects an appropriate balance between investment financial strength and attractive shareholder results.

Last but not least I would like to highlight that the growth of our regulated assets will be the cornerstone of the group's value creation, reflecting an increase of a big town and the group profit for that Sir.

Period of time.

Furthermore, really look beyond this period covering our strategic plan and we will consolidate the gross initiated its investments in this period as they are a b.

Beatriz Corredor: We will consolidate the growth, initiating this investment in this period, as the RAB will exceed EUR 15 billion at the end of 2031, and we will also have work in progress worth around EUR 2 billion in projects that will come on stream in the future, which we will be able to confirm once a new planning has been approved. We are on a solid growth trajectory, which ensures long-term visibility, representing a quantum leap for Redeia in terms of RAB, with greater remuneration capacity and a structural contribution to the development of the Spanish electricity system. Thank you very much for your attention. Now we have questions and answers. Thank you, ladies and gentlemen. The Q&A period starts now. If you wish to participate, please press star one in your phone keyboard. Thank you.

[Translator 2]: We will consolidate the growth, initiating this investment in this period, as the RAB will exceed EUR 15 billion at the end of 2031, and we will also have work in progress worth around EUR 2 billion in projects that will come on stream in the future, which we will be able to confirm once a new planning has been approved. We are on a solid growth trajectory, which ensures long-term visibility, representing a quantum leap for Redeia in terms of RAB, with greater remuneration capacity and a structural contribution to the development of the Spanish electricity system. Thank you very much for your attention. Now we have questions and answers. Thank you, ladies and gentlemen. The Q&A period starts now. If you wish to participate, please press star one in your phone keyboard. Thank you.

Will exceed 15 billion at the end of 'twenty 31, and we will also have work in progress worth around two point billion in Proteus that will come.

It will become an on stream in the future we should be able to confirm once a new planning has been approved we're on a solid growth trajectory, which ensures long term visibility representing a quantum leap for a day yeah in terms of our a b with greater innovation capacity and the structural contribution to the development of this mine.

Electricity system. Thank you very much for your attention and now we have questions and answers.

[laughter] scenarios as you noticed.

Ladies and gentlemen to the Q.

So in a period starts now if you wish to participate please press star one and your phone keyboard. Thank you.

Flora Trindade: First question from Flora Trindade, from CaixaBank. Flora, please go ahead.

Operator: First question from Flora Trindade, from CaixaBank. Flora, please go ahead.

Stepping that up but it won't come into their Florida three another question from Florida and now they've from catch up on Flora. Please go ahead.

Beatriz Corredor: Good morning. Thank you for the presentation and for answering our questions. I have two of those. I imagine there will be many questions, so I don't want to take up much of your time. I wanted to understand the CapEx you have reserved for the plan, because in 25 you had a CapEx of EUR 1.55, and then the average drops throughout the rest of the plan. I wanted to understand why this average goes down, and whether you see any upside in these investment levels beyond 2026. That's the first question. The second one, in terms of your funding, you're not including any type of asset turnover or rotation. Is this part of the plan? If things don't go exactly according to plan, what do you intend to do, and which countries might become a priority for you if that's the case?

[Translator 1]: Good morning. Thank you for the presentation and for answering our questions. I have two of those. I imagine there will be many questions, so I don't want to take up much of your time. I wanted to understand the CapEx you have reserved for the plan, because in 25 you had a CapEx of EUR 1.55, and then the average drops throughout the rest of the plan. I wanted to understand why this average goes down, and whether you see any upside in these investment levels beyond 2026. That's the first question. The second one, in terms of your funding, you're not including any type of asset turnover or rotation. Is this part of the plan? If things don't go exactly according to plan, what do you intend to do, and which countries might become a priority for you if that's the case?

Good morning, and thank you for the presentation and for answering our questions I have two of those I imagine there will be many questions. So I don't want to take up much of your time I wanted to understand the Capex you have reserved for the plan because in 25, you had a capex of 1.55 and then the average drops.

Throughout the rest of the plan I wanted to understand why this average goes down and whether you see any upside in these investment levels beyond 2026. That's the first question. The second one in terms of your hunting youre not including any type of asset turnover. Our rotation is this part of the plan.

If things don't go exactly according to plan.

What do you intend to do and which countries might become a priority for you. If that's the case. Thank you.

Beatriz Corredor: Thank you. Well, thank you very much, Flora, for your questions. First of all, I believe we have a very clear investment horizon for oncoming years, at least within the scope of our strategic plan. This year, we finished 2025 with a record number of approximately EUR 1.5 billion, which is the order of magnitude we expect as an average for the whole period of the future plan. Our engagement is EUR 6 billion during the period 2026 to 2029. That's 4 years. Therefore, our expectations, and we're pretty certain of those, is that execution capability in terms of investment, will remain around those EUR 1.5 billion per year during the length of the plan. I believe we're making a significant effort to that endeavor.

[Translator 2]: Thank you. Well, thank you very much, Flora, for your questions. First of all, I believe we have a very clear investment horizon for oncoming years, at least within the scope of our strategic plan. This year, we finished 2025 with a record number of approximately EUR 1.5 billion, which is the order of magnitude we expect as an average for the whole period of the future plan. Our engagement is EUR 6 billion during the period 2026 to 2029. That's 4 years. Therefore, our expectations, and we're pretty certain of those, is that execution capability in terms of investment, will remain around those EUR 1.5 billion per year during the length of the plan. I believe we're making a significant effort to that endeavor.

Well. Thank you very much flora for your questions first of all.

I believe we have a very clear investment horizon for the for oncoming years at least within the scope of our strategic plan. This year. We finished 2025 with a record number of approximately 1.5 billion euros, which is the order of magnitude we expect as an average for the whole period of the future plan.

Our engagement is 6 billion during the period of 26 to 29, that's four years, therefore, our expectations and we're pretty certain of those is that execution capability in terms of investment would remain around those 1.5 billion per year. During the length of the plan and I believe were.

A significant effort to that endeavor, if we compare our present plan to the last one that's an increase of 70% seven zero and 11 a level of certainty in our investment is very high even under strict standards. Since we have already secured practically all the critical supplies to run.

Beatriz Corredor: If we compare our present plan to the last one, that's an increase of 70%, and the level of certainty in our investment is very high, even under strict standards, since we have already secured practically all the critical supplies to run the plan, and most plans are in a well advanced stage of permits or commissioning. That's a very solid calculation. About your question about assets. Well, fortunately, our starting point in financial terms is very robust, despite the level of investment we're contemplating. We assume we can fund this strategy plan with our own capital without going to the market.

[Translator 2]: If we compare our present plan to the last one, that's an increase of 70%, and the level of certainty in our investment is very high, even under strict standards, since we have already secured practically all the critical supplies to run the plan, and most plans are in a well advanced stage of permits or commissioning. That's a very solid calculation. About your question about assets. Well, fortunately, our starting point in financial terms is very robust, despite the level of investment we're contemplating. We assume we can fund this strategy plan with our own capital without going to the market.

Around the plan.

And the most the plans are in the well advance stage of our permits are or commissioning. So that's a very solid.

Our calculation about your question about our assets well Fortunately, our starting point in financial terms is a very robust despite the level of investments we're contemplating.

We assume we can fund this strategy plan with our own capital without going to the market well obviously.

Beatriz Corredor: Well, obviously, we will have to increase our hybrid debt. Certainly, we also have European funding and other types of subsidies. Our investment horizon will probably, after a rating review, will remain robust in terms of financial solvency. We will not need any disinvestment as we did in our 21 to 25 plan. Certainly, this yields for opportunities in case the investment pace were to be accelerated. We have additional drivers, like deconsolidation or the partial disinvestment of some non-TSO related assets. According to the initial plan, that will not be necessary. We can finance our operations without any capital increases and just use the regular channels for funding in our plan.

[Translator 2]: Well, obviously, we will have to increase our hybrid debt. Certainly, we also have European funding and other types of subsidies. Our investment horizon will probably, after a rating review, will remain robust in terms of financial solvency. We will not need any disinvestment as we did in our 21 to 25 plan. Certainly, this yields for opportunities in case the investment pace were to be accelerated. We have additional drivers, like deconsolidation or the partial disinvestment of some non-TSO related assets. According to the initial plan, that will not be necessary. We can finance our operations without any capital increases and just use the regular channels for funding in our plan.

We will have to increase our hybrid debt.

Hum.

Certainly we also have European funding another types of subsidies in our investment horizon.

Well, probably after rating review will remain robust in terms of financial solvency. So we will not call we will not need any different investments as we did in our 21 to 25 plan.

Certainly there's a.

This yields.

For opportunities in case, the investment pace were to be accelerated we have additional drivers like of deconsolidation or the partial this investment of some non T. S O related asset, but according to the initial plan that will not be necessary and we can.

Finance, our operations without any capital increases.

And just use our regular channels for funding.

Glenn.

Yeah.

Flora Trindade: Next question comes from Javier Suárez from Mediobanca. You have the floor, sir.

[Translator 1]: Next question comes from Javier Suárez from Mediobanca. You have the floor, sir.

So that puts them up around the <unk>.

We have your next question comes from Javier Suarez from Mediobanca, you have the floor, Sir yes, good morning to all and thank you for this presentation.

Emilio Cerezo: Yes, good morning to you all, and thank you for this presentation. I had three questions. The first one has to do with the blackout that you mentioned recently throughout your presentation, like the origins and causes and effects of the blackout. I wanted to ask you, from your point of view, what actually, like, what should we learn in Spain and the rest of Europe? What should we have learned from this blackout? What measures have been included in your business plan to make sure that this situation does not happen again? In that sense, I also wanted to ask about the documents that we'll be waiting for, about the responsibilities that are connected to the blackout, and what documents are these? I understand there's one from the Spanish regulator.

[Translator 2]: Yes, good morning to you all, and thank you for this presentation. I had three questions. The first one has to do with the blackout that you mentioned recently throughout your presentation, like the origins and causes and effects of the blackout. I wanted to ask you, from your point of view, what actually, like, what should we learn in Spain and the rest of Europe? What should we have learned from this blackout? What measures have been included in your business plan to make sure that this situation does not happen again? In that sense, I also wanted to ask about the documents that we'll be waiting for, about the responsibilities that are connected to the blackout, and what documents are these? I understand there's one from the Spanish regulator.

I had three questions. The first one has to do with the reasons. The blackouts and you mentioned you recently throughout your presentation like the origins and goes and effects of the blackout. So I wanted to ask you from your point of view.

What's actually like what should we learn in Spain, and the rest of Europe, what should we have learned from these blackouts and what measures have been included in your business plan to make sure that this situation does not happen again and in that sense. I also wanted to ask about are the documents that will be waiting for about the responsibility.

They're connected to the blackout and what documents are these and understand there's one from the Spanish regulator and is there any other type of fine or should we assume that.

Emilio Cerezo: Is there any other type of fine, or should we assume that the attitude of the management of not having money ready for this, would that change if we had some kind of fine because of the blackout? That's the first question. Second one has to do with the extending the business plan up to 2029. Why has the company not extended it beyond 2029? That really has to do with the new plan, and infrastructure plan has not been approved.

[Translator 2]: Is there any other type of fine, or should we assume that the attitude of the management of not having money ready for this, would that change if we had some kind of fine because of the blackout? That's the first question. Second one has to do with the extending the business plan up to 2029. Why has the company not extended it beyond 2029? That really has to do with the new plan, and infrastructure plan has not been approved.

The attitude of the management, so not having money ready for this would that change if we had some kind of a fine because of the blackout is the first question. The second one has to do with the extending the business plan up to 2029. So why has the company not extended it beyond 2020.

And that really has to do with the new plant and infrastructure, but it has not been approved but I do believe that there's a lot more visibility after 2029, and perhaps bearing in mind that the company will have a new services above and beyond the last day of the business on your shoulders, perhaps the growth.

Emilio Cerezo: I do believe that there's a lot more visibility after 2029, and perhaps bearing in mind that the company will have new services above and beyond the last date of the business plan you've showed us, perhaps the growth of the company has not been valued properly, it has been valued too low, infra valued because of this. I would like to try and understand, why have you decided to have a cutoff time for 2029 and not a date further on? Third question, financing for the plan. Have you included getting to the end of the plan? You've decided to get there with EUR 2 billion with hybrid debt, and we're talking about the EPS now, because that should discount the financial cost that is connected to this hybrid debt.

[Translator 2]: I do believe that there's a lot more visibility after 2029, and perhaps bearing in mind that the company will have new services above and beyond the last date of the business plan you've showed us, perhaps the growth of the company has not been valued properly, it has been valued too low, infra valued because of this. I would like to try and understand, why have you decided to have a cutoff time for 2029 and not a date further on? Third question, financing for the plan. Have you included getting to the end of the plan? You've decided to get there with EUR 2 billion with hybrid debt, and we're talking about the EPS now, because that should discount the financial cost that is connected to this hybrid debt.

The company has not been valued appropriately at the Zimbabwe too low and provide huge because of this so we'd like to try and understand why have you decided to have a cutoff time before 2029 and not a date further on third question financing for the plan have you included getting Zhou.

At the end of the plan, you've decided to get there with 2 billion with hybrid debt.

And I were talking about the E. P. S now, but does that should discount the financial cost that is connected to this hybrid debt. So it's fair to say that that E. P. S grows will be lower than the what you've been pointing out and to what extent could that be lower thank you.

Emilio Cerezo: It's fair to say that EPS growth will be lower than the what you've been pointing out, and to what extent could that be lower? Thank you. Well, very well. How about if we divide up these questions? With regards to the blackout on 28 April and the reports that are pending, I think the most relevant one have already been printed, and we got one from the Government Analysis Committee, and an article had to do with national security. Another was a report that the operating system made, and they were obliged to do this because of the norms that we have, the laws that we have when something like this happens in Spain. Also we named, the European Union, named a European Expert Panel for this, and that's the third one.

[Translator 2]: It's fair to say that EPS growth will be lower than the what you've been pointing out, and to what extent could that be lower?

[Translator 2]: Thank you. Well, very well. How about if we divide up these questions? With regards to the blackout on 28 April and the reports that are pending, I think the most relevant one have already been printed, and we got one from the Government Analysis Committee, and an article had to do with national security. Another was a report that the operating system made, and they were obliged to do this because of the norms that we have, the laws that we have when something like this happens in Spain. Also we named, the European Union, named a European Expert Panel for this, and that's the third one.

Well very well how about if we divide up these questions with regards to the blackout on the 20th of April and the reports that are pending I think the most relevant one have already been printed and we got one from the government Committee and then article a lot to do with National security another one.

The reports.

Is that the operating sister me then they were obliged to do this because of the the norms that we have the laws that we have when something like this happens in Spain and then.

Also the name that the European Union named a expert panel for this and that's the third one so chronologically explains everything without any doubt of the data and the rigor who what where the various different incidents that happened throughout this whole process started chain by what's happened that too.

Emilio Cerezo: Chronologically explains everything without any doubt of the data and the rigor, what were the various or different incidents that happened throughout this whole process, starting by what happened at 2:00 AM or at 12:03 AM, rather. Very well. The transmission network never failed. We had more than 7,000 maneuvers without having any kind of failure. The maintenance of the part that has to do with the Red Eléctrica was actually complied with at all times, and we'll see this in these reports and in forums. We see that some of the laws were not complied with from, this is by the transport company.

[Translator 2]: Chronologically explains everything without any doubt of the data and the rigor, what were the various or different incidents that happened throughout this whole process, starting by what happened at 2:00 AM or at 12:03 AM, rather. Very well. The transmission network never failed. We had more than 7,000 maneuvers without having any kind of failure. The maintenance of the part that has to do with the Red Eléctrica was actually complied with at all times, and we'll see this in these reports and in forums. We see that some of the laws were not complied with from, this is by the transport company.

In the morning, or 12 O three.

So very well so the transmission network never fails, we had more than 7000 millennial.

Maneuvers without having any kind of failure, so the maintenance of the part that.

It has to do with the Red electric out whats actually complied with an old trains and we will see this in these reports and informed but we see that in some of the laws were not complied with Vermont.

This is by the by the transport company and in our annual accounts. We have not included this because we don't believe that we're going to be responsible for any mother bearing in mind that we complied with the law is in a very strict manner, what we kind of ensure that all of the agents over the sector actually did the same.

Emilio Cerezo: In our annual accounts, we have not included this because we don't believe that we're going to be responsible for any matter, bearing in mind that we complied with the laws in a very strict manner. What we cannot ensure is that all of the agents of the sector actually did the same. In the strategic plan. Well, it reflects many things, although it's not absolutely concrete, but it's the planning for 2025, 2030. It has not yet been approved. We hope it will be approved at the end of this year.

[Translator 2]: In our annual accounts, we have not included this because we don't believe that we're going to be responsible for any matter, bearing in mind that we complied with the laws in a very strict manner. What we cannot ensure is that all of the agents of the sector actually did the same. In the strategic plan. Well, it reflects many things, although it's not absolutely concrete, but it's the planning for 2025, 2030. It has not yet been approved. We hope it will be approved at the end of this year.

Now in the strategic plan.

Okay.

There is.

Well it reflects many things, although it's not totally concrete, but it's the planning for 'twenty 'twenty. One 'twenty 30, that's not yet been approved we hope it will be approved at the end of this year, but as he said before here, we'd rather like a whole series of infrastructure is that so far we're not operative in Spain, such as synchronous.

Emilio Cerezo: As we said before, here we gather, like, a whole series of infrastructures that so far were not operative in Spain, such as synchronous compensators, and also through changes in the planning in 2024, and especially in 2025, we have included tools for STACMS and FAST and with other matters. Our plan has decided to make all of this infrastructure that will give us an operating system that is resilient and safe, with greater guarantees, so long as that we can always guarantee that the other agents of the sector comply.

[Translator 2]: As we said before, here we gather, like, a whole series of infrastructures that so far were not operative in Spain, such as synchronous compensators, and also through changes in the planning in 2024, and especially in 2025, we have included tools for STACMS and FAST and with other matters. Our plan has decided to make all of this infrastructure that will give us an operating system that is resilient and safe, with greater guarantees, so long as that we can always guarantee that the other agents of the sector comply.

Patients and also through changes are in the planning in 'twenty 'twenty, four and especially in 2025. We have included tools for is that comes in and the other.

Other matters. So our plan is.

Already beat has decided to make all of this infrastructure that will give us a an operating system.

That is resilient and safe with greater guarantees so long as that we can always guarantee that the other agents of the sector comply and as our CEO. Just said we have taken some decisions to be able to have material and the special materials, especially the more critical ones to be able to be in the right.

Emilio Cerezo: As our CEO just said, we have taken some decisions to be able to have material, and the special material, especially the more critical ones to be able to be in the right condition to deploy this infrastructure as soon as possible, because actually the laws that we have now does not let us change this infrastructure at this point until such time that the planning has been approved completely. We have 70% of all of this material for this plan 2026, 2029. Therefore, we're in the right conditions to incorporate all of these new tools that the planning establishes for this electric network. With regards to the reports that are pending, we foresee that the main reports at the end of March should be ready, with the measures and recommendations will be incorporated into that report.

[Translator 2]: As our CEO just said, we have taken some decisions to be able to have material, and the special material, especially the more critical ones to be able to be in the right condition to deploy this infrastructure as soon as possible, because actually the laws that we have now does not let us change this infrastructure at this point until such time that the planning has been approved completely. We have 70% of all of this material for this plan 2026, 2029. Therefore, we're in the right conditions to incorporate all of these new tools that the planning establishes for this electric network. With regards to the reports that are pending, we foresee that the main reports at the end of March should be ready, with the measures and recommendations will be incorporated into that report.

Condition to deploy this infrastructure as soon as possible because actually the lowest that we have now theres not that does change its infrastructure at this point until such time that the planning has been approved completely so we have a 70% of all of this material for this band 2026 99. Therefore, we are in the right conditions to incorporate all of these new.

You told that the planning is.

That wishes for this electric network with regards to the reports are that are pending we foresee that.

The main reports at the end of March should be ready with the measures and recommendations will be incorporated into that report and with regards to the regulator as far as we know.

Emilio Cerezo: With regards to the regulator, as far as we know, files have been opened and research is being done. They've asked information from the sector. As it was recognized by the ministry, from 67 companies that were asked for information, we have been the only one that has been totally transparent with the data and the origins, we at Red Eléctrica. That's a question that the regulator should answer. Like, what is the period that this file is going to be ready, and what step will be taken once we know its content? Your turn. Thank you, Javier. Thank you for your questions. With regards to the plan and the period and how long it lasts, we've decided. Well, you know, it has to do with the visibility that we have and the commitments that we have to assume with the market.

[Translator 2]: With regards to the regulator, as far as we know, files have been opened and research is being done. They've asked information from the sector. As it was recognized by the ministry, from 67 companies that were asked for information, we have been the only one that has been totally transparent with the data and the origins, we at Red Eléctrica. That's a question that the regulator should answer. Like, what is the period that this file is going to be ready, and what step will be taken once we know its content? Your turn. Thank you, Javier. Thank you for your questions. With regards to the plan and the period and how long it lasts, we've decided. Well, you know, it has to do with the visibility that we have and the commitments that we have to assume with the market.

Files have been open in research is being done the vast information from the sector and as it was recognized by the Ministry from 67 companies that were asked for information we have been the only one that has been totally transparent with the data and are the origins Weird Reds electric.

And therefore, so that's a question that the regulators should answer like what is the period that this file is going to be ready and what steps will be taken once we know its content.

Near term thank you Javier.

For your questions.

With regards to the plan in the period and how long it lasts.

We've decided.

Well you know it has to do with the visibility that we have and the commitments that we have to assume with the market as we were saying before we are very clear and.

Emilio Cerezo: As we were saying before, we are very clear and we are certain that our the period of 2026, 2029 is very clear, and we do have a certain sort of visibility or, but not so much commitment for executing between 2030 and 2031, because as you said, that investment that will be taking place between 2030-2029. What is true is that the visibility that we have of putting in service or the up and running that we can get by the end of 2031 is quite clear, actually. Once we have reflected the level of the RAB of 15 billion, is also an objective that is something that we can attain. Of course, we have assumed this financial commitment is more complicated to do it in such long term.

[Translator 2]: As we were saying before, we are very clear and we are certain that our the period of 2026, 2029 is very clear, and we do have a certain sort of visibility or, but not so much commitment for executing between 2030 and 2031, because as you said, that investment that will be taking place between 2030-2029. What is true is that the visibility that we have of putting in service or the up and running that we can get by the end of 2031 is quite clear, actually. Once we have reflected the level of the RAB of 15 billion, is also an objective that is something that we can attain. Of course, we have assumed this financial commitment is more complicated to do it in such long term.

We are certain that our exit the period of 'twenty 'twenty six 'twenty nine is very clear and we do have a search and sort of visibility or but.

Not so much commitment for executing between the 20th century 20, you said you wanted because as you said not investment double with taking place between 2030.

29, what is true is that the visibility that we have of putting in service are up and running that we can get by the end of 'twenty 31 is quite scare actually once we have reflected the level of the our E Bay of $15 billion is also an objective that is something that we can attain.

But of course, we have assumed is a financial commitment. So it is the more complicated to do it is in such long term. So we wanted to give a reliable.

Emilio Cerezo: We wanted to give a reliable, sort of, information and things that we know that we'll be able to comply for right now, and then wait until we have proper approval of the necessary matters to be able to commit to things after 2021 for, like, 2030 and 2031. What is true is that the visibility that we have now, and we're talking about the years 30, 31, we're talking about volumes that are above EUR 4 billion in those two years. We'll have to wait to see that we do have a proper plan to be able to be much more concrete on this matter. In any case, the visibility that we're giving now, as far as the evolution of the RAB, is truthful, and we wanted to assume financial commitments up to 2029, where we have greater certitude.

[Translator 2]: We wanted to give a reliable, sort of, information and things that we know that we'll be able to comply for right now, and then wait until we have proper approval of the necessary matters to be able to commit to things after 2021 for, like, 2030 and 2031. What is true is that the visibility that we have now, and we're talking about the years 30, 31, we're talking about volumes that are above EUR 4 billion in those two years. We'll have to wait to see that we do have a proper plan to be able to be much more concrete on this matter. In any case, the visibility that we're giving now, as far as the evolution of the RAB, is truthful, and we wanted to assume financial commitments up to 2029, where we have greater certitude.

So our information and things that we know that would be able to comply for right now and then wait until we have proper approval of the necessary matas to be able to commit to things. After 2021 for like 2030 and 2031, but what is true is that the visibility that we have now and were talking about the use 30 31, we're talking about.

Volumes are above 4 billion in those two years, we'll have to wait do you see that we do have a proper plan to be able to be much more concrete on this matter, but in any case the visibility that we're giving now as far as the evolution of our a b is truthful and we wanted to assume financial commitments up to 2029.

Where we have greater certitude.

Emilio Cerezo: Emilio, would you like to answer the next question? Thank you, Javier. With regards to what you said about hybrid debt, we want to have EUR 2 billion of hybrid bonds at the end of our plan, which bring us close to the maximum capacity that we have for that instrument, so they will be able to be qualified as equity content as far as our rating agencies are concerned. It's true that the accounting treatment that we're giving to these hybrids, as you know, is to consider within our equity, the EUR 2 billion and payment for the interest is also registered within all of our equity and the profit or loss. Also the increase of...

[Translator 1]: Emilio, would you like to answer the next question?

Amelia would you like to answer the next question. Thank you Javier.

[Translator 2]: Thank you, Javier. With regards to what you said about hybrid debt, we want to have EUR 2 billion of hybrid bonds at the end of our plan, which bring us close to the maximum capacity that we have for that instrument, so they will be able to be qualified as equity content as far as our rating agencies are concerned. It's true that the accounting treatment that we're giving to these hybrids, as you know, is to consider within our equity, the EUR 2 billion and payment for the interest is also registered within all of our equity and the profit or loss. Also the increase of...

With regards to what you said about hybrid debt.

We want to have 2 billion of hybrid bonds at the end of our plan and wages bring us close to the maximum capacity that we have for that instruments are there, we'll be able to be qualified as equity content as far as our rating agencies are concerned and it's true that the accounting.

Treatment they were giving to these hybrids as you know is to consider with interact with G. The 2 billion euros and payment for the interest is old so registered with in all of our equity and the profit loss and also the increase so well you know the interest rates of the hybrids everywhere.

Emilio Cerezo: Well, you know, the interest rates of the hybrids, if we were to account for them within our results, the average result that we would have is, would be less than 1% of these emissions throughout the next few years. Thank you.

[Translator 2]: Well, you know, the interest rates of the hybrids, if we were to account for them within our results, the average result that we would have is, would be less than 1% of these emissions throughout the next few years. Thank you.

Account for them within the hour.

Results are the average insult. The result that we would have is would be less than 1% of these emissions are throughout the next few years.

Thank you.

So I pushed them up at a one <unk> next question comes from adding.

Beatriz Corredor: Next question comes from Ignacio Domenech from JB Capital. Hello, thank you very much for the presentation and for answering our questions. Mine is about your rating. In 2029, you're setting up a guideline for a net debt exceeding 14%, I understand that unless the S&P rating changes, that would not be compatible with maintaining triple B plus. Considering your talks with rating agencies, do you expect them to soften these targets, this guidance, or perhaps it's not a priority for you to hold on to that triple B plus? Well, thank you for that question, Ignacio. About financial solvency, well, historically, obviously as part of this plan, Redeia's priority is maintaining a solid credit rating without committing to a different rating.

Beatriz Corredor: Next question comes from Ignacio Domenech from JB Capital.

Ignacio Dominic from J D capital.

Beatriz Corredor: Hello, thank you very much for the presentation and for answering our questions. Mine is about your rating. In 2029, you're setting up a guideline for a net debt exceeding 14%, I understand that unless the S&P rating changes, that would not be compatible with maintaining triple B plus. Considering your talks with rating agencies, do you expect them to soften these targets, this guidance, or perhaps it's not a priority for you to hold on to that triple B plus? Well, thank you for that question, Ignacio. About financial solvency, well, historically, obviously as part of this plan, Redeia's priority is maintaining a solid credit rating without committing to a different rating.

Hello, and thank you very much for the presentation and for answering our questions mine.

<unk> is about to your rating.

In 2029, you're setting up a guideline for a net debt exceeding 14% and I understand that I'm less.

The F N b rating changes.

That would not be compatible with maintaining triple B plus.

So.

Considering your talks with the rating agencies.

Do you expect them to soften.

These targets this guidance or.

Perhaps it's not a priority.

Or for you to hold onto that Triple B plus.

Well, thank you for that question Ignacio.

About financial solvency.

Well historically and obviously as part of this plan, but they S priority is maintaining our solid credit raining rating.

Without.

Committing to a.

Different.

Beatriz Corredor: Certainly, our investment volume will bring us close to financial ratios that might maintain the company in triple B plus, just as will happen to other peers in the same field. Based on the analysis we have conducted on financial ratios, we're confident that we will remain there without making a firm commitment to any rating whatsoever. Our priority is remaining financially solid to tackle our strategic plan and maybe future developments, too. But consistently, with other recent reviews from other agencies, we do expect to maintain that triple B plus on credit solvency. That's what we expect from the outcome of rating agencies' reports.

Rating certainly our investment volume, we'll bring us close to financial ratios that are mined.

And maintain the company in the Triple B, plus just as will happen to other peers in the same field.

Based on the analysis, we have conducted on financial ratios were confident that we will remain there without making a firm commitment to any rating whatsoever. Our priority is remaining financially solid to tackle our strategic plan and the maybe future.

Your developments too, but consistently with other recent reviews from other agencies, we do expect to maintain our that triple B plus.

On a credit solvency, that's what we expect from the outcome of rating agencies. Our rewards they will have to assess a different or are they are without his passat and the group.

Beatriz Corredor: They will have to assess a different Redeia without Hispasat in the group and with a vision, a different vision on the 28 April incident, that differs from the view when the incident had just happened. In financial terms and in terms of debt, I am convinced that we will still have a good credit rating, and we expect a revision that will keep us at triple B plus.

And with our vision.

A different vision on the April 28 incident that differs from the view of when the.

The incident had just happened.

So in financial terms and in terms of dead Italian convinced that we will still have a good credit rating and we expect a revision that will keep us at triple B plus.

Okay.

The protein market on therapy and have a funnel of Sanchez.

Emilio Cerezo: Next question from Gonzalo Sanchez from UBS. Please, you have the floor. Thank you very much. Good morning to all of you, and thank you for your presentation. I have a couple of questions. The first one has to do. Well, first of all, I'd like to understand the possible leveraging that we have because of the risk of these figures going up and down, as you presented today, regarding investments. Let me explain myself. If there is an additional delay from we're waiting as far as, like, the approval of the investment plans, then I assume this could generate two situations, and one would be that the investments are more expensive than what we foresee due to inflation. In the second place, the part that's not insured, you know, that 30% that is not insured would be open to these fluctuations.

[Translator 2]: Next question from Gonzalo Sanchez from UBS. Please, you have the floor. Thank you very much. Good morning to all of you, and thank you for your presentation. I have a couple of questions. The first one has to do. Well, first of all, I'd like to understand the possible leveraging that we have because of the risk of these figures going up and down, as you presented today, regarding investments. Let me explain myself. If there is an additional delay from we're waiting as far as, like, the approval of the investment plans, then I assume this could generate two situations, and one would be that the investments are more expensive than what we foresee due to inflation. In the second place, the part that's not insured, you know, that 30% that is not insured would be open to these fluctuations.

Next question from Hassan Al <unk> from New UBS. So please you have the floor.

Thank you very much good morning to all of you and thank you for your presentation.

So I have a couple of questions.

The first one.

Has to do well first of all I'd like to understand.

The possible leveraging that we have because of the risk of these set of figures going up and down that you presented today regarding investments allow me to explain myself is there is an additional delay from we're waiting as far as like the Bruegel of the investment plans then I assume this cause.

It generates.

Two situations in one would be that the investments are more expensive than what we foresee due to inflation and then in the second place.

Okay.

The part does not insured you know that 30% that is not insured we'd be open to these fluctuations. So late to understand how are you considering this with regards to possible risks.

Emilio Cerezo: I'd like to understand, how are you considering this with regards to possible risks, to, like, going up or going down? As far as I understand, according to new regulation, there is a certain pass-through. Still, I wonder, how would you consider this at a mathematical, from a mathematical standpoint? That's it, you know, going up, going down, but especially if it's going down. As far as going up is concerned, you have given a delivery throughout 2026. Very interesting, as far as the EBITDA margin, which is much higher than what was considered in the plan. Now I understand that you're taking a much more conservative point of view as far as the increase of these margins. I'd like to understand what type of leverage the company has to be able to improve that result.

[Translator 2]: I'd like to understand, how are you considering this with regards to possible risks, to, like, going up or going down? As far as I understand, according to new regulation, there is a certain pass-through. Still, I wonder, how would you consider this at a mathematical, from a mathematical standpoint? That's it, you know, going up, going down, but especially if it's going down. As far as going up is concerned, you have given a delivery throughout 2026. Very interesting, as far as the EBITDA margin, which is much higher than what was considered in the plan. Now I understand that you're taking a much more conservative point of view as far as the increase of these margins. I'd like to understand what type of leverage the company has to be able to improve that result.

To like going up or going down because as far as I understand they're going to new regulation, there's a certain pass through bonds. So I wonder how would you consider this in our mathematical for mathematical standpoint. So that's it you know going up going down, but especially for us going down but as far as going up is concerned.

You have given the deliveries are all trained 26 at very interesting as far as the EBITDA margin, which is much higher than what was considered in the plan. So no I understand that you are taking much more a conservative point of view as far as the increase of these margins. So I'd like to understand what type of leverage the company has to be able to improve.

Emilio Cerezo: Generally speaking, any kind of upside or downside in this sense would be interesting. The second question has to do with what was mentioned about the rating. Due to the conversations we had before, I will understand that that 14% would be within the ranges of triple of two of these rating agencies. I'd like to understand, what is the type of conversation that's happening with this? On that subject matter, are you expecting a change? If there is going to be a change, what kind of impact could that have in the plan? With greater flexibility, I mean, what would the impact be in the plan? Thank you.

That result, and then generally speaking any kind of upside or downside in this and would be interesting.

[Translator 2]: Generally speaking, any kind of upside or downside in this sense would be interesting. The second question has to do with what was mentioned about the rating. Due to the conversations we had before, I will understand that that 14% would be within the ranges of triple of two of these rating agencies. I'd like to understand, what is the type of conversation that's happening with this? On that subject matter, are you expecting a change? If there is going to be a change, what kind of impact could that have in the plan? With greater flexibility, I mean, what would the impact be in the plan? Thank you.

And then the second question.

Has to do with what was mentioned.

You mentioned about the rating.

Okay.

Due to competition as we had before I will understand that that 14% would be within the ranges of.

The Triple O. Two of these are raging agencies, so I'd like to understand what is the type of conversation that's happening with us on that subject matter, you're expecting a change and if there is going to be a change.

What kind of impact could that have in the plan with greater flexibility I mean, what would the impact be in the plan. Thank you.

Beatriz Corredor: Thank you very much, Gonzalo. Very well. With regards to the commitment for investment, 26 to 31, which is actually quite... You're right in what you say. There is a potential for delay in the planning, and if it were significant, it could affect it a bit. I want to remind you that there is a volume for investment, which is a volume that is really quite important. These monies, they come from the planning that we have now, and then we're putting it in the other plan that is being analyzed. 26, 27, and all the way to part of 29, corresponds to that, the monies that we have, at least for the next 3 and a half years. It's real and true. Of course, there will be something pending for the approval, for the planning.

[Translator 2]: Thank you very much, Gonzalo. Very well. With regards to the commitment for investment, 26 to 31, which is actually quite... You're right in what you say. There is a potential for delay in the planning, and if it were significant, it could affect it a bit. I want to remind you that there is a volume for investment, which is a volume that is really quite important. These monies, they come from the planning that we have now, and then we're putting it in the other plan that is being analyzed. 26, 27, and all the way to part of 29, corresponds to that, the monies that we have, at least for the next 3 and a half years. It's real and true. Of course, there will be something pending for the approval, for the planning.

And thank you very much Gonzalo.

Very well with regards to the commitment for investments.

Twin disc six says 31 was is actually quite you're right in what you say there is a potential for a delay in the planning and if it were significant it could affect it a bit but I want to remind you that there is a volume for investments, which is a volume that is really quite important are these.

Moneys they come from.

The planning that we have now and then we're putting it in the other plant that is being analyzed so 26 27, and all the way to part of twenty-nine.

Corresponds led to that the monies that we have at least for the next three now if he is and is it.

Real and true and of course, there will be something pending for the approval for the planning, but we have this intuition and due to the interest that is needed for the deployment of these infrastructures that it can be a quick approval and this very year and we also have mechanisms that might to.

Beatriz Corredor: We have this intuition, and due to the.

[Translator 2]: We have this intuition, and due to the.

Emilio Cerezo: ... that is needed for the deployment of these infrastructures, but it can be a quick approval in this very year. We also have mechanisms that might be taking place throughout the strategic plan period in order to accelerate these periods and to be able to compensate a potential delay. As far as investment is concerned, I think it's really the certitude level is quite high. We haven't wanted to commit beyond 2029, because then between 2030, 2031, will need to be approved later on. As far as the plan period, these objectives are really quite firm. With regards to possible price evolution, I don't think we are. We're in the situation we lived through two or three years ago.

[Translator 2]: ... that is needed for the deployment of these infrastructures, but it can be a quick approval in this very year. We also have mechanisms that might be taking place throughout the strategic plan period in order to accelerate these periods and to be able to compensate a potential delay. As far as investment is concerned, I think it's really the certitude level is quite high. We haven't wanted to commit beyond 2029, because then between 2030, 2031, will need to be approved later on. As far as the plan period, these objectives are really quite firm. With regards to possible price evolution, I don't think we are. We're in the situation we lived through two or three years ago.

The taking place throughout the strategic plan period in order to accelerate.

And these are periods and to be able to compensate a potential delay so as far as investment is concerned I think it's really quite the substitute level is quite high.

So we haven't wanted to commit beyond 2029, because then between 19 and.

2030, 2031, we'll need it to be approved later on but as far as the pit plan period. These objectives are really quite firm with regards to possible price evolution.

I don't think we are no. We're in the situation we lived through two or three years ago, we do see that most of the supplies and equipment.

Emilio Cerezo: We do see that most of the supplies and the equipment have stabilized the prices. In those critical supplies, with a greater demand, we have acted, or jumped the gun, as it were. That is much more concrete, so we don't see any difficulties or in potential changes. Also, Gonzalo, the new framework that we have for regulations and retributions also gives us, well, it permits us to assume various deviations as far as the cost of this is concerned. We're really quite comfortable in our objectives and the evolution of investment.

[Translator 2]: We do see that most of the supplies and the equipment have stabilized the prices. In those critical supplies, with a greater demand, we have acted, or jumped the gun, as it were. That is much more concrete, so we don't see any difficulties or in potential changes. Also, Gonzalo, the new framework that we have for regulations and retributions also gives us, well, it permits us to assume various deviations as far as the cost of this is concerned. We're really quite comfortable in our objectives and the evolution of investment.

Stabilized.

The prices and in those are critical supplies.

With a greater demand we have acted.

Acted div or jumped the gun as it were then that is much more concrete.

And so we don't see any difficulties or in potential changes and also called a subtle the new framework that we have four rigs.

Regulations and retribution also gives us some well it permits us to assume various deviations as far as the cause of this is concerned so we're really quite comfortable in our objectives and the evolution of our investment with regards to.

Emilio Cerezo: With regards to what we can add to operating profit from a strategic plan and the ups and downs, the company has to have enough means to be able to face this growth, and it is a process that we have already started, and that will continue throughout this year and part of 2027. That, in fact, it does affect the rates of the EBITDA and efficiency. Remember that we're starting with a volume that was quite relevant at the end of 2029. Of course, those ratios are going to affect, have an effect, and of course, more, it'll be much more efficient in the future. We have decided to be conservative as far as exploitation expenses are concerned, to be able to maintain the growth that we're talking about. Just another thing.

[Translator 2]: With regards to what we can add to operating profit from a strategic plan and the ups and downs, the company has to have enough means to be able to face this growth, and it is a process that we have already started, and that will continue throughout this year and part of 2027. That, in fact, it does affect the rates of the EBITDA and efficiency. Remember that we're starting with a volume that was quite relevant at the end of 2029. Of course, those ratios are going to affect, have an effect, and of course, more, it'll be much more efficient in the future. We have decided to be conservative as far as exploitation expenses are concerned, to be able to maintain the growth that we're talking about. Just another thing.

What we can add to operating profit from.

From a strategic plan of the ups and downs. The company has to have enough means to be able to face this growth and it is a process that we have already started and that will continue throughout this year and part of 10 to 27 and that in fact, it does affect the rates. So there we've done insufficiency.

And remember that we're starting with a volume that was quite relevant.

At the end of 2029.

And of course, those ratios are going to affect our.

I have an effect and of course said move.

It will be much more efficient in the future, but we have decided to be conservators conservative as far as exploitation expenses are concerned to be able to maintain the growth that we're talking about and just another thing, let's talk a little bit more about.

Emilio Cerezo: Let's talk a little bit more about that, the efficiencies that we see as far as financial structure is concerned, for the costs of the equity, and also some thoughts about the rating. I also, Gonzalo, wanted to tell you what I was saying before with regards to the rating agencies and the rapprochement that they has to them. As we said before, the context of the company has changed radically from the last few revisions or reviews, and the focus on regulated activity is much clearer. Really, what we expect to see is a treatment similar to other companies within Europe, that have these same types of ratios, that are going to be better than what have been applied to us in other years and in Spain, and in other years.

[Translator 2]: Let's talk a little bit more about that, the efficiencies that we see as far as financial structure is concerned, for the costs of the equity, and also some thoughts about the rating. I also, Gonzalo, wanted to tell you what I was saying before with regards to the rating agencies and the rapprochement that they has to them. As we said before, the context of the company has changed radically from the last few revisions or reviews, and the focus on regulated activity is much clearer. Really, what we expect to see is a treatment similar to other companies within Europe, that have these same types of ratios, that are going to be better than what have been applied to us in other years and in Spain, and in other years.

That the efficiencies that we see as far as financial structure is concerned for the costs of the equity.

And also some thoughts about the raging buy also been sort of wanted to tell you what I was saying before with regards to the rating agencies and the rapprochement said that or they add to them as we said before them.

The context of the company has changed radically.

The last few revisions our reviews and the focus on regulated activity is much clearer and really what we expect to see is a treatment similar to other companies within Europe.

<unk> have.

These same types of ratios.

And that's all going to be better than would have been applied to us and other years and in Spain and in other years, but I believe that the relationship we have with these agencies quite close we do believe that this horizon over triple plus a b plus is the horizon that we think that we can reach.

Emilio Cerezo: I believe that the relationship we have with these agencies is quite close. We do believe that this horizon of a triple plus B+, is a horizon that we think that we can reach. However, in a hypothetical case, that there's a much more investment or a much more restrictive position from the agencies, I'd like to remind you that we still have leveraging or hedging within the company to be able to reinforce this financial structure of the group, if it is needed. Thank you. Continuing with what you said, first of all, talking about ratios, I think it's really important to highlight that these ratios of credit ratios are very solid. In fact, much better than many others in, within Europe, and it's important to highlight that.

[Translator 2]: I believe that the relationship we have with these agencies is quite close. We do believe that this horizon of a triple plus B+, is a horizon that we think that we can reach. However, in a hypothetical case, that there's a much more investment or a much more restrictive position from the agencies, I'd like to remind you that we still have leveraging or hedging within the company to be able to reinforce this financial structure of the group, if it is needed. Thank you. Continuing with what you said, first of all, talking about ratios, I think it's really important to highlight that these ratios of credit ratios are very solid. In fact, much better than many others in, within Europe, and it's important to highlight that.

However, in a hypothetical case that there's a much more investment.

Or a much more restrictive position from the agencies and I to remind you that we still have leveraging or hedging within the company to be able to reinforces our financial structure of the group if it is needed.

Thank you and to continuing with what you said first of all I'm talking about ratios.

I think it's really important to highlight that these are ratios of our credit ratios are very solid.

In fact, much better than many others in within Europe.

And it's important to highlight and tides quite sincerely. We think there are clearly are compatible with a triple b plus as far as our agencies are concerned.

Emilio Cerezo: Quite sincerely, we think they are clearly compatible with a BBB+ as far as our agencies are concerned, and even a AAA+. We think that will be the qualification that we will achieve from now on, a AAA+. We're looking at a solid investment grade, but in any case, this is a decision that has to be taken by both agencies according to what they want to do and Standard & Poor's and the others. As far as the upsides are concerned, and adding something and some aspects that Roberto was saying, I also think it's important to say that from a financial point of view, we see upsides quite clearly by improving our cost of the debt compared to what we have in the pre-tax 630, 658.

[Translator 2]: Quite sincerely, we think they are clearly compatible with a BBB+ as far as our agencies are concerned, and even a AAA+. We think that will be the qualification that we will achieve from now on, a AAA+. We're looking at a solid investment grade, but in any case, this is a decision that has to be taken by both agencies according to what they want to do and Standard & Poor's and the others. As far as the upsides are concerned, and adding something and some aspects that Roberto was saying, I also think it's important to say that from a financial point of view, we see upsides quite clearly by improving our cost of the debt compared to what we have in the pre-tax 630, 658.

Uneven a AAA plus and we think that that will be the quantification that we will achieve from now on a triple a plus and we're looking at a solid investment grade but in any case. This is a decision has to be taken by both agencies, according to where they want to do and.

Send that improve and the others and as far as the upsides are concerned and adding something on some aspects that Roberto was saying I also think it's important.

To say that from a financial point of view, we see upsides quite clearly by improving our.

Cost of the debt, who compared to what we have in the pre tax.

630.

Emilio Cerezo: In any case, we're going to have a average financial cost that's going to be better than what we've already shown. Also, what's improved this, 46%, bearing in mind is this, how solid we are in our balance sheets and our projections and all of these things, we believe that we're going to have higher leverage than 46%, keeping that solid investment grade. By combining these two factors, better hedging and better...

[Translator 2]: In any case, we're going to have a average financial cost that's going to be better than what we've already shown. Also, what's improved this, 46%, bearing in mind is this, how solid we are in our balance sheets and our projections and all of these things, we believe that we're going to have higher leverage than 46%, keeping that solid investment grade. By combining these two factors, better hedging and better...

658, and in any case, we're going to have a average financial cost is going to be better than what we've already shown so also.

What's improves this 46%.

Bearing in mind is this how solid we R&R and our balance sheets on our.

The projections and all of these things we believe that we're going to have higher leverage than 46% keeping that solid investment grade and by combining these two factors better hedging and better cost of our debt, which is highly competitive will permit us to create value.

Beatriz Corredor: Cost of our debt, which is highly competitive, will permit us to create value. As you heard not too long ago, to be able to get return on investment above 9%. One of the important leverages that we have, to have that ROI that is so attractive to create value for our shareholders, has to do with our capacity for hedging and to be able to get into debt at a very competitive cost. Next question from Fernando García from RBC Capital Markets. Fernando, please go ahead. Good day, everyone, and thank you for taking our questions. I only have one question after everything you've said, and it's about the incentives you're using for your net guidance for 2029. Emilio, you just talked about financial performance.

[Translator 2]: Cost of our debt, which is highly competitive, will permit us to create value. As you heard not too long ago, to be able to get return on investment above 9%. One of the important leverages that we have, to have that ROI that is so attractive to create value for our shareholders, has to do with our capacity for hedging and to be able to get into debt at a very competitive cost. Next question from Fernando García from RBC Capital Markets. Fernando, please go ahead. Good day, everyone, and thank you for taking our questions. I only have one question after everything you've said, and it's about the incentives you're using for your net guidance for 2029. Emilio, you just talked about financial performance.

And as you heard not too long ago to be able to get a return on investment above 9% and one of the important leverages, though we have to have that zero why that is so attractive to create value for our shareholders has to do with our capacity for our hedging and to be able to get into that in a very competitive.

Costs.

Next question from Fernando Garcia from RBC capital markets Fernando. Please go ahead.

Good day, everyone and thank you for taking our questions.

And I only have one question after everything you've said and it's about the incentives you're using.

For your net guidance for 2029, Emilio you choose to.

You just talked about financial performance.

Beatriz Corredor: Are you also considering operational outperformance, and are you using any of that for your 2029 guideline? Are you considering any incentives to generate some upside for your 2029 guidance? Excellent. Thank you very much, Fernando, for your question. Well, about the level of incentives we have integrated into the plan, as you know, our approach is usually very conservative, so we prefer not to include any kind of incentives into the base case scenario we presented today. There might be an upside, but we don't want to make any comments on that. At an operational level, we're also being conservative in the hypothesis we have included into the plan. Certainly, via integrating new asset management policies and new elements related to innovation, we might, just might, achieve some operational efficiencies within the model.

So.

[Translator 2]: Are you also considering operational outperformance, and are you using any of that for your 2029 guideline? Are you considering any incentives to generate some upside for your 2029 guidance? Excellent. Thank you very much, Fernando, for your question. Well, about the level of incentives we have integrated into the plan, as you know, our approach is usually very conservative, so we prefer not to include any kind of incentives into the base case scenario we presented today. There might be an upside, but we don't want to make any comments on that. At an operational level, we're also being conservative in the hypothesis we have included into the plan. Certainly, via integrating new asset management policies and new elements related to innovation, we might, just might, achieve some operational efficiencies within the model.

Are you also considering operational performance and are using any of that for your 2029 guideline.

Or.

Are you considering any incentives to generate some upside for your 2029 guidance.

Excellent. Thank you very much Fernando for your question.

Well above the level of incentives we have integrated into the plan as you know.

Our approach is usually very conservative so we prefer not to include any kind of incentives into the base case scenario, we presented today than there might be an upside, but we don't want to make any comment on that at an operational level, we're also being conservative and.

The hypothesis, we have included into the plan certainly by integrating new asset management policies and new elements related to innovation we might.

Just might.

Achieve some operational efficiencies within the model.

Beatriz Corredor: Perhaps just to give you a flavor on it, well, there's a remuneration for works in progress, and that affects the investment portfolio we have planned, within the plan. Another part of the portfolio is not affected, but the way it is conceived, it might represent a loss of return in terms of the financial remuneration rate. That deficit generated by not applying work in progress to the whole asset base can be offset, and as Emilio Cerezo was saying, via financial management, with medium and final costs of debt under the regulation threshold established in the FRR, we can generate value above that 9% return on equity we're considering. Thank you. There are no further questions in Spanish. We will now take questions.

Perhaps just perhaps just to give you a flavor on it well there's a remuneration bought for a works in progress and that affects the investment portfolio. We have planned it within the plan.

Another part of the portfolio is not affected but the way it is.

Conceived it might represent a loss of return.

In terms of the financial remuneration rate.

But.

That deficit.

Generated by not apply in work in progress to the whole asset base can be offset and as familiar was saying.

By financial management web medium and final cost of debt under the regulation thresholds established and the F. R. R. We can generate value above that 9% return on equity were considering.

Yeah.

Yes, no I must thank you there are no further questions in Spanish we will now take questions.

Operator: Perfect. Thank you. As a reminder, if you'd like to ask a question via the telephone lines, you can do so by pressing star followed by one on your telephone keypads now. If you choose to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure you are unmuted locally. Our first question comes from Arturo Mira of Jefferies. Arturo, your line is open. Please go ahead. Arturo, your line is open. Please proceed with your question and unmute yourself locally. Arturo, please make sure you're unmuted locally on your device. We are not receiving any audio question from Arturo's line. As a reminder, it is star followed by one on your telephone device to register a question for today's call.

Perfect. Thank you as a reminder, if you'd like to ask question Bobby telephone lines. You can do so by pressing star followed by one on your telephone keypads now.

Just with a question. Please press star followed by two or preparing to ask a question. Please ensure you're on mute locally.

Our first question comes from Altamira Bureau of Jefferies. Arturo. Your line is open. Please go ahead.

Arturo Your line is open. Please proceed with your question among mute yourself locally.

Arthur Please make sure youre on mute locally on the device.

We are not receiving any audio question from Walter Rosemont. So as a reminder, and install followed by one on your telephone voice to register a question for today's call.

Now you know the online.

Beatriz Corredor: Well, it doesn't seem like there were any further questions, we go on to the questions we have received online. Most of them have already been answered. Daniel Rodriguez asks us the estimated cost of hybrid bonds and whether or not it is contemplated into the 3.3% contemplated and the estimated cost of debt. Mafalda Pombeiro has two quick questions: The EUR 6 billion CapEx target, is it gross or net of subsidies? What would be the investment pace of the plan? Is it continuous, a year-on-year, or does it follow a growing progression? Well, thank you. The cost of the hybrid instruments we're contemplating is approximately 4% to 5%. Certainly, as you know, the market is looking very attractive now, and if we were to invest, we would come very close to that 4%.

It doesn't seem like there were any further questions. So we go on to the questions. We have received online most of them have already been answered Daniel Rodriguez asks of the estimated cost of hybrid bonds and whether or not it is contemplated into the 3.3% contemplated and the estimated cost of debt and muffled.

Our beta has two quick questions. The 6 billion Capex target is it grows or net of subsidies.

And.

What would be the investment pays off the plan is is to continuous a year on year or is does it follow.

On a growing progression.

Thank you the cost of the hybrid instruments, we're contemplating is approximately 4% to 5% certainly as you know the market is looking very attractive now and if we were to invest we would come very close to that 4% that 3.3%, we set up as average financial cost for 'twenty 'twenty nine does not.

Beatriz Corredor: That 3.3% we set up as average financial cost for 2029, does not integrate hybrid instruments. It does integrate the cost of funding of our telecom business and our international business, which have, which are funded mostly in US dollars. As I said before, during the presentation, our average funding cost in the plan is 2.8%. If we were to integrate 50% of the cost of hybrids, that would take us to 3%. If we consider the entire cost of hybrids, that would bring us to approximately 3.2%. Perhaps to answer Mafalda, just to clarify the numbers, those EUR 6 billion in investment are a gross number.

Integrate hibernia instruments, but it doesn't guage the cost of funding of our telecom business and our international business, which have which are funded mostly in U S dollars.

As I said before during the presentation, our average funding cost and the plan is 2.8%. If we were to integrate 50% of the cost of hybrids that would take us to 3% than if we consider the entire cost of hybrids that would bring us to approximately 3.2%.

And perhaps.

To.

To answer my file that just to clarify the numbers those 6 billion in investment or a gross.

Number.

Beatriz Corredor: We can consider an average annual investment of EUR 1.5 billion, going slightly up or down, one year or the next, but we consider EUR 1.5 billion as an annual average. It is important to remember that we're providing bar references, and those sums are net of subsidies and European funds, so it will be directly direct remuneration. I think it's important that to round up the answer for Mafalda. Well, with this, we've finished today's presentation. As usual, our investors relations team remains available to you if you have any further consultations. Other than that, thank you very much.

We can consider an average annual investment of 1.5 billion going slightly up or down in one year or the next but we consider 1.5 billion as an annual average.

It is important to remember that.

Sure, providing a bar references and those shops are net of subsidies in European funds. So it will be directly a direct remnant ration.

I think it's important.

That to round up the answer for my file them well.

Well with this we're finish today's presentation as usual our investors relations team remains available to you. If you have any further consultation other than that thank you very much.

Okay.

Yeah.

Okay.

Yeah.

[noise].

Okay.

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