Hello, good morning, ladies and gentlemen. Thank you for attending RAND 2025 Results Conference Bowl. Joining us today are the members of our Executive Committee, Kudryk Koster, our CEO, Monsal Mouraj Swash, our CFO, and Joao Mosesal, our CEO. Kudryk will start with his opening remarks and Monsal and Joao will guide you through the main operation and financial highlights of the year. In addition, we will also provide an update on our strategic priorities for 2026 and 2027. After the presentation we will open the floor for a Q&A session and we're happy to take your questions. Thank you very much.
Thank you Maddalena. Good morning all. 2025 was a very challenging but a good year both from an operational perspective as well financial perspective. I believe we did quite well and achieved very good results. On my notes regarding and 2024, just a year ago, I did a list of the challenges we went through in the last years, and there were many. We had COVID. We had a lot of local political turmoil. We had the beginning of the Ukraine war. We had a spike on energy prices, critical drought for a couple of years, and, of course, the usual licensing processes, delays to develop infrastructures, and some challenges in the front of regulation and also high taxes. In 2025, we headed a blackout in Spain that took our system down. We had multiple storms because not just the ones we had very recently, we had them also in the fall of last year. And, of course, with all these, we have been quite busy. But the truth is that we have been consistently delivering in our plans. Quarter after quarter, the numbers speak by themselves. We keep delivering consistent results and meet the best expectations. On top of the good operational and financial work, we saw some important progress with sales. Also, on the tax front, we were able to take advantage, again, of a regimen that is now more favorable to business. We are also doing well in Chile, developing the business according to plans you are aware. We believe that our sector remains very interesting and full of opportunities. Our government remains committed to the energy transition, and that's, of course, quite positive for us. Energy is at the center of the world development, and we are core for that development. We are a catalyst of the energy transition, and we are doing what we are supposed to do, developing projects, managing existing infrastructures, and being efficient and consistent. And with that, I will move to Gonzalo.
Number four, the results, and we are improving metrics as the recent duration. We are increasing. This is already positive. But before I go into a little bit more detail, let me pass to Joao, our COO, so that he comments more on the operating side.
Thanks, Gonzalo. Good morning to you all. You have the summary of the main points from the operational perspective, and I would highlight the last one on the regulation points which is the new regulatory framework for electricity we will go in more details later on in a slide but to tell you that we've got an improvement versus the previous regulatory framework on the different components the most important one the rate of return which has a starting point of 6.19% base rate, plus incentives and plus some other upsides that we will detail later on. Jumping to slide number seven, you have the main indicators. I would highlight the fact that we increase the electricity consumption by 3.2% versus last year, and this 53 terawatt hour overall of 2025 was the highest consumption ever registered in the Portuguese electricity. Global share is approximately the same as the one we got in 2024. There is a slight decrease, and the reason is very simple. As you may remember, we had these blackouts on the 28th of April, and after the blackout, we were forced to generate some electricity with combined cycle plants in order to ensure the necessary levels of security of supply of the system. This is something that we are evolving, but affected the renewable share, and it's the reason of the increase on gas consumption of 11.1 percent, which is basically justified by this increased need of generating electricity with gas sources. In terms of quality of service, in summary, nothing special to report. But we were in line with the previous years, obviously considering the blackout as a special event. Back to you.
The main number nine in EBITDA, what you can see is this increase of 2%. So on assets and OPEX remuneration, it's based on revenue, the investments, plus other revenues increased a little bit more this year than previous years. methods that were not accepted. This year that impact is around 6 million, so it explains this line. Coropex, basically it's a mix of the increase in personnel costs, around 2 million euros and then for those. In terms of the ahead there, to slide number 10, basically no news. We already knew the rates of return. really showing acceleration, mainly in CapEx around 13. Actually, if you look at the electricity, CapEx is growing heavily, so it's accelerating the deployment, which will continue to happen. In terms of raw returns, there's a positive impact. It comes from the asset-based evolution and in gas, there's a big pollution, nothing. That's here in this line, in electricity, you don't see the impact of solar. Slide 13 in OPEX, as I told you, the evolution is a little bit increased, both increased around 2% of that is in more people. So this increase in people, I'd say that in internal costs, also the increase in the network relation and also a little bit of increase in IT, but it's mostly. Looking at Chile in slide 14, so the gas part, a little bit, but it's an agenda as we have defined. Major news in depreciation, as always, financial results, a large impact of slightly above 4.5 million euros. Year-on-year impact is on a year-on-year basis. I'd say that we are missing, we have also the impacts from dividends that we receive. In terms of taxes, no major news. So, what we see is that this year we still quite won. We already won more court cases during the year, but they are not completely final. We are more conservative and not put it in the accounts, so we have not accounted for any court case winnings in 2025. That doesn't mean that there was any change. Actually, we continue to win court cases in the gas part. In the electricity, there are no use, but in the gas park, we continue to import cases, but since they were not completely finalized, we didn't put anything in the account. But we are expecting that they will start to have an impact now. So that's why in terms of the tax incentives, 5 million euros, so this year, they're not changing, I'd say, the overall estimate of around average of 30, because we think that in the following years, this is going to come down a little bit more, which is the number that we gave you are going to be higher. I'd say that tax rate of 8%, very much in line with what we have in the tax rate also. Slide 16, so it's just basically these different impacts of EBITDA and financial results, depreciation coming down as it goes up in EBITDA, and that I told. In terms of net debt, slide 17, deviations, which 100 million net debt, but clearly better than what we had expected and in line with expectations. Cost of debt issues, also the debt. Debt bond issuance have other impacts. You see that at the end of the year, I can anticipate to you that this maturity, even the recent bond issuance, will go up. It's already up to 5. We want to maintain it at 5. You don't have it here in this slide, but we also have, at the end of the year, 2 change. So we are going to have more fixed than variable. We'll have around 60 per quarter. As the slightly more fixed again, which was... Okay, we have this, but more importantly also we have this positive development. With S&P, we were looking at the improvement in a positive. Slide 18 is just the share price evolution, so you all know that we have a good share price evolution. Share price has continued to form well in the beginning of, so we continue to get in line also with the sector or slightly above. So just going over our sustainability agenda, and we ended up the year going into emissions, And this is in the face of, as Joel mentioned, an increase in use of gas, even the blackout. So we were able to perform this. Our objective is at minus 30. So we are basically there. We are clearly on track. So I think that this shows that we continue to deliver. I'm not going to go in detail over this. And in slide 22, you see the main SD standard. so we don't work for this, for the standards themselves, but it's good that they recognize the hard work that we do in this area and the commitment. So, either we maintain because we are already at the top level or we are continuing. Okay, so looking a little bit of our presentation, so not all of these of the slides are here. To the analysts, we have mentioned already additional information to what I'm going to say, so that I don't have to go through all of the slides, but the main messages are going to be the same. In slide 29, before going to register, that we are delivering and outperforming versus what we gave you. So this is something that nowadays is important to refer because it's not always the case. We clearly came on target in EBITDA. We clearly came very much ahead in net profit. We clearly came on the low range of the interval and within the interval and ahead of schedule on the CAPEX deployment. So this is important to give you that idea, not because we don't want to give more visibility that this is the normal timing. Next year, we are not giving you now a new business plan. What we are giving you is basically a limited revision of numbers for these two years, and then next year we will revise the business plan with all. Looking at slide 25, what can we see in the numbers that we are giving you now? First of all, there is an acceleration of CAPEX. So clearly we are giving you and telling you that we are going to be deploying more CAPEX already in 20 years. are saying is that this capex growth is coming basically from electric. This is extremely well aligned with what happened within our regulations. So, we are, this is what is happening now at the time regulation from electricity came out positive at the end of the year. So, it came out with a very healthy rate that allows us now to deploy capex with more confidence and to be able to accelerate knowing exactly the returns that we are going to have, so I think that there's this kind of multiplication. What I can tell you is that on the fiscal and funding, we are consolidating what we had before. So, fiscally, there is a major stand-up for companies, we are actually improving credit metrics that also allows us, we are going to be able, if you have a little bit more detail on what the capex step we are decreasing the ones in this way and we are waiting for priority in certain agendas so we are deploying it there but again let me focus on the electricity capex then this increase these strong increases across the board it's mainly linked to integrating more renewable capacity the fact that most of it is going to be done after 2027 it's It's more modernization of assets, so it's more connecting to polar agreements. As I already mentioned, slightly delayed in 2007, the timeline that we have, okay? In Chile, no major news. I'd say that the major change was that we acquired by 2007. Most of this is already, you already know, so there was regulation, and base rate is On incentives, we should be at or slightly above 7% of it. We are much more comfortable. So summarizing, and in slide 28, so what we are seeing and giving you as a plated target. In EBITDA, this is only for 26 and 27, a range of 540 to 560. Bear in mind that before, the maximum number in the interval was 540, and this is now the minimum interval, so around an increase of 12%. Profit, clearly a very large upgrade, 150 to 160. This year we were at 160. We tend to be conservative in the intervals that we give you, but this is the number that we... That's slightly more. We are spending a little bit more capex. It's normal that it increases. This increase actually improving a little bit. In capex, we have everything 100 million. So, we will see to be a challenging year for this team, but now I'm confident that by 29 asset-based growth in electricity of around 9% when we put regulated and non-regulated assets and solar agreements. We saw this improvement in regulation with above 7% returns. We continue to see these favorable coal parts, and we are not accounting for, in these numbers, this 40 million a year is even being slightly conservative on the incentive that that that we have now at 34 million we are not considering in these numbers any recuperation of wages that we may have it's a very positive number we so finally slide 21 and this guidance shows you tension this was a little bit longer
Operator
than usual but thank you so much dear participants as a reminder if you'd like To ask a question, please press star 1-1 on your telephone keypad and wait for your name to be announced. To withdraw a question, please press star 1-1 again. Mr. Mbauer, compile the Q&A and Roster, these will take a few moments. And now we're going to take our first question. And it comes to the line of Ignacio Domenech from JB Capital. Your line is open. Please ask your question.
Hi. Good morning. Thank you for the presentation and thank you for taking my questions. And the first question is on the financial, on the lower financial cost and the higher financial income in the quarter. I believe, Gonzalo, you mentioned one of 6 million euros, but actually looking at the quarter, we're seeing a decline, both in the financial cost, but also an increase. no so i just wanted to uh to to understand uh what drove this is one of no which is quite material and to understand if if it was a uh cash impact okay if everything was a gas and then And secondly, on your Capex plans, we saw a material increase versus the 2024-27 targets which you outlined in the business plan. So just wanted to understand here as well if this is the right level of investments that we that we should expect going forward or or post 27 we should expect this number to to decrease as i assume that part of these a capex includes the solar a direct agreement okay okay just to see if there is any upside risk um there uh thank you thank you very much So, on the financial cost, the main change in the quarter is the thing that I mentioned,
the exchange rates. Because things in the last quarter have changed a lot in Chile, okay? But actually negative exchange rates happened until then on the third quarter and then they became positive, okay? Because of the elections and on the follow-up of the elections, there was a very strong reversal. you see that change which little bit again more abrupt then but it's basically that okay so that's basically from being negative almost 4 million to being positive 11 but okay a follow-up question
if I made on on the recurrent net profit of 150 160 million and I assume this includes the tax capitalization incentive right but it does exclude any upside from a tax recoveries from city it is correct it's correct so we are assuming capitalization there as I said we are assuming actually an average that is below 30 million for 26 and 27 and actually in 25 it was higher than 30 million so it's around 28, 27, assuming for those years, but an expectation that again, we are assuming any change, we
are assuming the same thing, minus the 10 million of gas, and in 27, basically, you are already assuming a small decrease in the electricity you already, because according to the budget, the new assets, the ones that you deploy in 26, are already not such a tweak. we see that reflected in 2017 because their assets are being amortized and you pay less well understood thank you thank you very much thank you dear participants as a reminder if
Operator
you would like to ask a question please press star one one on your telephone keypad and now we're going to take our next question and the next question comes line of Jorge Alonso from Bernstein your line is open please ask your question hi good morning thank you for taking my questions just a clarification in one of your slides on regarding on the campus I know that you're not going to to give us a any any figure for 2829 but just to understand the the national transmission network plan that you put there eight hundred one billion between 2026 2029 and then special capex for the CNS region to be deployed by 31 just to understand how how overlap is that so just understand if basically the CNS capex are expected to be deployed already since 2026 or it will be more back and then loaded starting maybe 2028 to 20 to 2030 to 2031 that's the first the first question just to how to allocate that extra extra capex the next the other questions are regarding that the tax breaks if you can provide any call about if you think that these can be extended one year more if not if anyone should we have news about about that and if you had any any any view about the potential complete removal of them of the special energy tax on electricity in in in the near future if you you think that the mood and in the political landscape have changed and this is now more likely than
than in the past thank you very much relating to things jon can complement but yes so it's clearly after 27 so before 27 and in the in the capex that we have this for these two years you have a not even 10 percent of that thing i think that's wrong is starting to going to be doing that in 27 but very small amount no no this was okay so it's more 28 29 30 okay and the government also is coming out now with a new process for new high-demand areas. These are basically linked, as we have said in the past, to data centers and things like this. This is a process that is ongoing. We cannot give you any news now, so it can result in additional capex that we don't have in the network. But again, if it does, this year, it's only going to be deployed in 29. It's not in the horizon for these two years. Next year, so when we come with the business plans for 27, 28, 29, and 30, we are going to give you, and perhaps that is going to include numbers you have. Reality is that, again, I think that there is an upside here.
Operator
Any further questions?
Operator
No, thank you very much.
Operator
Thank you. Dear participants, just a reminder, if you would like to ask a question or make a comment, please press star 11 on your telephone keypad. Dear speakers, there are no further questions for today. And I would like to hand the conference over to the management team for any closing remarks.
So thank you very much for attending. As mentioned by Gonzalo, we are still going to be able to take any of your questions offline. and we'll be discussing the numbers on the coming weeks. So thank you again and speak to you soon. Thank you.
