Redeia Corporación, S.A. (RED) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome. I'd like to start this event by thanking you for participating in this Annual General Meeting of Red Eléctrica Corporación, S.A., which is going to be held on second call. The general meeting will be held this year using a hybrid format and that makes it possible for the shareholders to participate along with the representatives and proxies remotely. Voting in advance and also attending remotely automatically today. Along with me, I've got CEO, Roberto Garcia Merino; and the Secretary of the Board, Carlos Mendez-Trelles Garcia, also the other members of the Board of Directors that are in this hall. In order to minute the proceedings of this AGM, we've got the notary from Madrid, Eduardo Martin Alcalde with us. He is here in the room, close to the platform. So I'll hand over to the Secretary now.

Thank you Chairman. Good morning, ladies and gentlemen. As indicated in the official quarter meeting, the Board of Directors of Red Eléctrica Corporación, S.A. on the 25th of April 2023 resolved to convene this Annual General Meeting of Shareholders. We're going to be holding the AGM in compliance with the provisions established in the general shareholders meeting regulation that the company is by laws and the applicable legislation. As usual, you can follow the AGM over the corporate website directly or on demand later. We've got simultaneous interpretation into English and with sign language to make it easier for everyone to participate in the AGM but you can't record any pictures in the hall. I'd also have to tell you that if there's a failure of the electronic services and communication systems, we'll suspend the AGM for the time necessary to deal with the problem after which we will start the meeting immediately that we have reestablished the systems, and we will inform you of this on the company's website.

We will now proceed to constitute the general meeting in compliance with what's established by law in the bylaws and in the general meeting regulations and read the essential aspects of the proposed resolutions, which are being put for approval and for the information of the meeting, after which the CEO, Roberto and I, myself will talk about the most relevant aspects of the strategy and management of the company during 2022. Those results are being presented to this AGM. So now -- after which, we will have a Q&A for shareholders and after that, we will inform you the results of the voting on the proposed resolutions that the Board is putting to your approval. Available in the room to answer any questions you might have during the Q&A are the Chairman of the -- Chairpersons of the different Board committees, the appointments committee Socorro Fernandez; the Audit Committee, Antonio Gomez and the Sustainability Committee, Carmen Gomez, just in case you wish to ask any questions within the scope of their responsibilities, both in the quarter meeting and in the resolutions, which have been put ahold. We have ensured that you had direct access to that over the shareholders attention office and in your home, if you asked for the full text, given that there are a lot of documents, we can deem them to have been fully read for the purposes of this meeting. And as in previous years, we're doing an external audit of the procedures for this AGM. In order to enhance the reliability and transparency of its operation including the way we count votes and proxies. The preliminary results of the audit will be published today on the company website when we finish the meeting and after they've done the final testing, then we will publish the final results of the audit to ensure that all the shareholders who wish can vote and know what they have voted. They can request a certificate of their vote, which will be sent to them. So I'll now hand over to the Secretary to talk about the arrangements for the meeting.

First of all, I'd like to say that as established in the corporate bylaws and in the general meeting regulations. This meeting is chaired by the Chair of the Board, Beatriz Corredor and the Secretary will be me along with the other members of the Board of Directors, forming part of the AGM panel. We have convened this meeting in an announcement published on the website of the CNMV and the company on the 26th of April 2023 and in the daily paper sale by Houston expansion on the 22nd of April 2023. We can say that no shareholders have requested supplements to the call for meeting or any alternative proposed resolutions over and above those approved by the Board. This meeting will be held on second summons given that in the first one, we didn't have the legal quorum required. The Secretary will now form you on attendance here. Ladies and gentlemen, the list of attendance is as follows. We have present in the room 186 shareholders holding 31,303, 766 shares. And proxies, 2,196 shares holding 300 shareholders holding 320,896,638 shares. So in total, at this AGM between attendees and proxies using remote procedures in order to follow and vote in the meeting and attending it in person, we have 2,382 shareholders holding 352,200,404 shares, which is equivalent to 65.092% of the company's share capital. Having applied the legal limitations established in the electricity sector law and in the corporate enterprises law and in the by-laws. All in all, at this meeting, we have 329,057,304 shares with voting rights, which is equivalent to 63.532% of the 517,936,900 shares of the company with voting rights. The company's treasury stock has been included in order to calculate the necessary percentages to constitute this AGM, but we've excluded them from the calculation of the total number of shares with voting rights. Likewise, the shares that go beyond the legal limits of shareholder participation in the company have been taken into account for the effects of constituting the general meeting. However, these shares haven't been taken into account in order to calculate the percentage of voting levels necessary to adopt resolutions. Therefore, this meeting is quorate according to the capital enterprises act and the bylaws to be held on second summons in order to discuss all matters included on the agenda. For the notaries proceedings, I can tell the shareholders that the attendance list has been drawn up and recorded and that when it's necessary, this will be duly sealed and identified by the Chair. I now hand over to the notary in order to make the legal notices that are required regarding the attendance.

I have to ask, if any of those attending or those attending through representatives, which to challenge or state any reservations regarding the number of shareholders attending or the capital present or represented. If that's the case, tell me either by a communication over the access section in the telematic attendance platform on the corporate website or if you're here in the room, come up to the desk and inform you of this and I will include it in the minutes.

According to the attendance data presented by the Secretary, we can declare that the current Annual General Meeting is quorate on second summons in order to deal with the business on the agenda. And as in with the rules for the remote attendance, should any shareholder attending remotely wish to intervene or request information or clarification on the attend the business being put to the AGM or the information available to the public, which the company has filed with the CNMV since the last General Meeting was held or regarding the auditor's report or if they wish to make any of the proposals that Laura allows them to do so. They must do so before 11:30 today over the remote attendance platform on the website. And according to the procedures established for this in the quarter meeting and on the website. And if you wish your intervention to be minuted verbatim, you should inform us of this over the remote attendance platform on the website with a full copy of the content of your intervention. And if you're actually attending here and you wish to ask any questions, you may do so in the Q&A by requesting to do so at the help desk for shareholders at the bottom of this room and in order to be able to bring up the matters you deem timely. And if you wish your intervention to be minuted verbatim, you must give it to the notary in writing before you speak. And please keep your interventions as short as you can. I'd like to remind you that as announced in the quarter meeting, the shareholders or their proxies may have been able to issue votes on the proposals in the agenda items through the voting form set up on the remote attendance platform and the website since 9:45 today this morning. As established in the procedures for remote attendance, people voting remotely. We'll have to cease voting at the moment when I indicate after the Secretary has read all the proposed resolutions. If any shareholder or their proxy wishes their abstention or their vote against any of the proposals being put to vote be minuted, they can notify the notary over the remote attendance platform on the company website or if they're actually here in this room, then they can go to the Notary's desk to inform him. To do so, they have to identify who they are and how many shares they hold or represent and whether they are voting as a shareholder or as a proxy and how they wish to vote. In line with the general meeting regulations, we will consider all votes corresponding to the shares present in the AGM to be votes in votes against, which will be those or blank votes or abstentions, which expressly are stated on the voting cards or the proxies received before the AGM. And with the exception of the votes against or the blank votes and abstentions, which expressly stated during this AGM either remotely or directly. We will now hand over to the Secretary to read the proposed resolutions on the business in today's agenda.

As indicated by the Chair, the content of the proposed resolutions, which can be put to your approval and the information matters included in the agenda can be read in the documentation, which has been made available to all shareholders so they can deem to have already been read but I'll give you the essential aspects of each of them. Item 1, proposed approval of the annual individual accounts and the management report of Red Eléctrica Corporación, S.A. for 2022 filed by the Board of Directors in its meeting of the 27th of February 2023, which have been duly audited by KPMG Auditores. Item 2, proposed approval of the annual consolidated reports and the consolidated management report of Grupo Red Eléctrica Corporación, S.A. for the 2022 filed by the Board of Directors in its meeting of the 27th of February 2023, which have also been duly audited by KPMG Auditores. Item 3, proposed approval of the distribution of profit of Red Eléctrica Corporación, S.A. filed by the Board of Directors in its meeting of 27th of February 2023. And as a consequence of the distribution of the profits of the fiscal year 2022. Item 4, proposed approval of the nonfinancial information statement, which is consolidated with Red Eléctrica Corporación, S.A. for 2022 and I can say that this has been audited by Ernst & Young. Item 5, proposed approval of the management of the Board of Directors of Red Eléctrica Corporación, S.A. during 2022. Item 6, proposed modification of Article 1 name and legal form of Title 1 of the company's bylaws in order to modify the name of the company. This modification proposed is because of the adaptation of the name to the new branding of the group of companies communicated to shareholders in the last Annual General Meeting held in 2022. Thus, it was considered proper for the company to include the new brand Redeia, which is why we propose that it should be called Redeia Corporación, S.A. Item 7, proposed modification of the general meeting regulations in order to modify the name of the company in line with the proposed modification of the bylaws that I've just referred to. And to implement some provisions regarding representation at general meetings and to bring in certain technical and wording clarification. The new provisions regarding the representation of shareholders are intended to make it easier for shareholders who wish to give their proxy in future general meetings and are in line with general practice in listed companies. And it's broken up into 3 sections in the first. We proposed to modify the articles aim and duration of the regulation. Three, the powers of the general meeting; 6, numbering an Article 9 right to attend. The second section is on 10 representation; 15 night, the issuing of votes remotely prior to the general meeting. And in the third section, we went to amend Article 15 Section 8 Voting. Now item 8, proposed reelection of Jose Juan Ruiz Gomez as an Independent Director at the proposal of the Appointment and Remuneration Committee for the term established in the bylaws of 4 years. Item 9, proposals regarding the remuneration of the Company Board. This is separated into 2 parts. In the first part, we put to your approval, the annual report on the remuneration of the Directors 2022 in Red Eléctrica Corporación, S.A. approved by the Board of Directors on the 27th of February 2023 following a favorable report issued by the Appointments and Remuneration Committee. In the second part, we're putting to your approval, the proposed remuneration of the Board for 2023, also following a favorable report from the Appointments and Remuneration Committee. This proposal, it maintains the remuneration of the Board for 2023 with the same items and amounts as we had in 2022 in previous years. Item 10, proposed delegation for the enforcement of the resolutions adopted by the general meeting. We propose to delegate to the Board of Directors, its Chair and other members of the Board and the Secretary and the Deputy Secretary of the Board with all the rights that they have a law in order to file and place in the public domain, the resolutions passed here.

Having heard these proposals for resolutions to be put to this general meeting. The Secretary will now briefly report on the information items in the agenda.

Item 11, information on the corporate governance annual report of Red Eléctrica Corporación for 2022. The report was approved by the Board of Directors on the 27th of February 2023 and filed with the CNMV along with other relevant information. This report as we've had it for several years, has the format established by the CNMV in its circular 3, 2021. The report is in line with best international practices of our peers and contains an executive summary and the outstanding events and links 2 events, which are of importance for compliance with the corporate governance of the company. And as usual, we include the most outstanding practices and principles of the year regarding good governance. The report also contains the most relevant aspects of the self-assessment process that the Board of Directors does every year and takes up the next steps that the company will be taking regarding corporate governance. This annual report is available in Spanish and in English on the company's website in the section containing the documentation for this general meeting, which is available to all of you. And in compliance with the code of good governance of listed companies, I can inform you that in 2022, the company has complied with all the recommendations of the code that are applicable to them with the following exceptions. We haven't been in compliance with recommendation one that suggests that the listed companies by laws should not limit the maximum number of votes that one single shareholder can issue. However, in the report, we explained that all the shareholding limits covered in Articles 5 and 14 and the additional provision of the corporate by laws are a reproduction of the legal regime established in the electricity sector, law applicable to the company. We haven't complied with Recommendation 48 that suggests that companies with a high market cap should have an appointment committee and also a separate Remuneration Committee. As we explained in the annual report, the Board hasn't deemed it suitable to have this separation because of the small size of the Board compared to other companies of similar market caps. And also because it considered that one single committee could fully comply with all the duties that the law establishes for such committees and with the exception of Recommendation 62, which has only been partially complied with because although we comply with the recommendation that the Executive -- the Chief Executive Officer should for at least 3 years, hold the shares received as part of his or her annual variable remuneration regarding the multiyear variable remuneration, given that there's a total of 6 years duration for the plan, there couldn't be any additional commitment to declare this. Item 12. Information to the meeting on the sustainability report of Redeia for 2022, the Board has approved this report on the 28th of March 2023, which has been filed on a voluntary basis by the company. The 2022 sustainability report covers the main events, the progress and figures that Redeia has reached in 2022 regarding its commitment to sustainability to be achieved with the targets for 2030 and reporting on its sustainability performance, which is also reflected the different awards and recognition that the company has been given in '22 with respect to this matter. Ernst & Young has also audited this report and their opinion has been incorporated into the report as an annex. The sustainability report has been available to you since the 30th of March 2023 on the company's website and also is included in the documents for this general meeting made available to all shareholders. Item 13 of the agenda. Information to the general meeting regarding the 2023 to 2025 sustainability plan of Redeia. The Board of the company on the 25th of October 2022, approved the sustainability plan to cover the period 2023 to '25. The sustainability plan has 14 lines of action, 87 targets, 190 actions in order to ensure responsible management of the business and progress with respect to Redeia sustainability priorities in line with our stakeholders' expectations with the global scope, including the activities of business throughout Redeia footprint. A summary of the sustainability plan, which has been approved by the Board is in the section of the documents on the website, which is called Sustainability and is included in the documents, which have been made available to you since the day that this AGM was convened.

I will now say very briefly certain ideas about the strategic aspects of the activity of Redeia in 2022, after which Roberto, our CEO, will give you more details. Again, thank you for joining us today, ladies and gentlemen, shareholders. Redeia's performance this year, of course, must be considered within the complex context in which our activities have taken place. 2022 has been a year of great impact. We felt the pain of an unjust war plus then the urgency of a geopolitical and energy crisis, which challenged Europe and emphasize our vulnerabilities. Now 3 years after the beginning of the pandemic, the past certainties have left us with a fragile frantic world, which does not always follow a cause and effect relation, which some house feels incomprehensible. The word that defines this time would be uncertainty. We live in a time of constant change in which the real challenge is had to flexibly adapt in order to maintain our course and our vision of the future. That's the only guarantee of survival. In spite of all these adversities, Spain has continued to grow and demonstrate its role within the EUs framework. Our country is moving forward with the implementation of its national plan for recovery, transformation and resilience with 2 main pillars: environmental transition and digital transformation. Moving forward, in these 2 great transformations with the support of government, contribution of all citizens and the efforts of companies, which like Redeia firmly believe in this vision for the country. For Redeia, it is the central element of our purpose and also the heart of our business. And once again, in 2022, we have demonstrated it through achievements. We've continued to move with Spain in the transformation of its energy model, which is now an international model. Of course, this is no coincidence. Behind it, we have the government's reforms, which together with the underlying commission agenda have prioritized energy transition policies towards more sustainable energy model and a more decarbonized economy. Because of all of this, we are the European Union's renewable engine as demonstrated this year. The war in Ukraine has reveal the dependency of Europe's energy system, but also Spain's privileged position. After years of hard work, our potential and renewable energies and the strength of our electrical grid have been key in order to support our European neighbors in times of hardship. Our support to France because of the low availability of its nuclear power plants and Portugal affected by severe drought mean that we closed 2022 with a record level of exports. And this leadership in Spain's renewable energy sector, our flagship Red Eléctrica has played a central role. In 2022, we commissioned almost 6 new gigawatts in renewable plants, of which 4.5 gigawatts were wind farms. With this constant growth last year, 42% of electricity generation in the country was from renewable sources, even though it was one of our driest years and therefore, less production of hydro power. 2023 will exceed these record numbers. A few days from the middle of the year, renewable energies already represent 50% of the mix. And the factor in 9 hours last May 16, they generated all that was needed to cover internal demand. These figures show the enormous efforts that are people at the head of the control center for renewable energies and making in order to maximize the indication of renewable energy sources without endangering the guarantee of supply and the quality we're accustomed to. It's tremendously complex to work with nonmanageable, very variable energy sources. And it's a great responsibility, which is the operator of the system, Red Electrica is implementing with its aim of providing a reliable public service as ever, which I think is the reason why we should once again publicly recognize the efforts of these professionals. Thanks to home, Spain can now be sure of integrating over 98% of all its renewable generation percentage, which is much higher than that of our neighbors. And of course, none of these records would have been possible without the efforts we've continued to make to reinforce our transport network. After the planning of the electricity sector in March of 2022, we push forward in order to implement on schedule, all the projects that had been planned. Our CEO will give you more details about these projects in a minute, but I'd like to emphasize the determination of our teams to implement projects of enormous technical complex and scope, including the connection between Lanzarote and Fuerteventura in the Canary Islands or the electricity lines of Caparacena-Baza in Granada or Astillero-Cacicedo in Cantabria, which are now already in operation. In parallel, we're also working in the underwater cable between Ibiza and Formentera, which has already received its operation authorization. And we've achieved very relevant milestones including the Iberian Peninsula filter connection, the batteries, which will be integrated in Balearic Island networks as well as the interconnections of course, between Portugal and France. And in this sense, the whole management team in transmission and transport are working hard to implement these projects as soon as possible because they're essential and strategic for interconnection because without the renewable energy generated in the Iberian Peninsula, Europe will not meet its transition, decarbonization and efficiency targets. And that's why we cannot afford the low interconnection levels with the Iberian Peninsula from becoming a hindrance to the achievement of these ambitious targets. Beyond planning, we've also made significant progress in the Salto de Chira plant in Gran Canaria. We've already begun building the storage infrastructure, which will be essential for the operation of the system, which in 2027, will be available to the whole community in Gran Canaria. These are just a few examples of the hard work done by Red Electrica in 2022, demonstrating once again that we will be the backbone of environmental transition in Spain but we're also the backbone of the other enormous revolution, which is required for this energy transition, digitization, the digital transformation of our economy, which is a great source of opportunity in order to modernize our businesses and improve social and territorial cohesion but it has to be inclusive digitization reducing and not increasing in equality. And this requires the deployment of universal, accessible and affordable connectivity for all and this is the driving force behind Spain's digital 2026 agenda with the use of almost 30% of the investments from the next-gen European funds. And Redeia is making this one of our priority aims, providing the almost 53,000 kilometers of local hard fiber optic lines with which and through our partnership with KKR, Reintel is still market leader, is a key pillar in the digital transformation we need, mitigating the digital divide and supporting the new technology hub in Southern Europe. And speaking about universal access, we of course, cannot overlook the potential of satellites to fight the digital divide. Our subsidiary is Hispasat with 10 geostationary satellites in operation in 2022 has now taken qualitatively forward and last February 7, Hispasat launched the Amazonas Nexus, which is the most advanced satellite of its fleet, which will start operating this summer. From , I had the privilege of sharing this great milestone 30 years after the launch of the first Spanish satellite with almost 60% of its capacity already under contract, Nexus will access such remote areas as Greenland extending digital rights to held for education and rural populations of Latin America providing support for air and maritime transport and guaranteeing in the security of communications of the U.S. Department of Defense. In the year, Hispasat has also strengthened its position in various Latin American countries, continue to digitize traditional sectors like agriculture, farming or the prevention of forest fires and has maintained its commitments with narrowing the digital design in Spain. Just a few weeks ago, we were awarded the Unico Demanda Rural program, which will offer broadband access to all rural areas where there's no fiber optic networks with a flat fee of EUR 35 a month. But our commitment with Latin America is not just about satellite coverage or experience as manager of essential infrastructure puts us as a relevant actor in the energy transition of this region. 24 years after it began operating, Reintel has continued to move forward, developing electricity transmission lines with new projects being commissioned in the countries in our footprint, Peru, Chile and Brazil. We had particularly significant growth in Brazil with the retention of new concessions through our subsidiary, Argo, which we manage with our Colombian partner, Grupo Energia de Bogota, who is Chairman, we had the honor of hosting here in Redeia last week. These partnerships show the very important role that our countries should and must play to strengthen bonds between Europe and Latin America. Our natural partners, we think we must currently work hard in order to strengthen our bonds and create strategic partnerships including those that are so necessary regarding critical materials because energy and environmental transition technologies are much more intensive in raw materials. And that's why a partnership between our regions is so essential in order to successfully complete this energy transformation on schedule. And I would like to conclude by briefly reviewing the role of this company in technology innovation. Of course, all sectors are currently focused on innovation and so as Redeia, because only through technology, we'll be able to face the challenges of the environmental and digital transformation. And that's why we have our great technology platform, ELEWIT, which in 2022 has continued to develop the innovation ecosystem in Spain through a firm commitment towards external and internal talent. ELEWIT launched its fourth venture client program and has continued to support companies that are being disruptive such as the Okta grid startup. We were also involved in the launching of innovative products, which are already being marketed and offering opportunities to professionals within the group so that they can become intra-entrepreneurs. And we've already had 2 additions of the Despegar program, which has been extremely successful. Ladies and gentlemen, shareholders, Redeia is moving forward understanding that our contribution cannot just be measured in terms of our milestones, but also through the way in which we achieve those milestones. For a long time, the legal legitimacy of businesses has no longer been the only requirement communities in the areas where we operate are now playing a central role amongst our stakeholders. Our activities have an impact on them, and therefore, they should have a big say in our projects, listening to them and responding to their needs is key in order to achieve this legitimacy, which means committing the positive impact that each project will have on local communities and the way we work includes active listening and social innovation, which means that before designing projects, our teams multidisciplinary including environment, institutional relations and social innovation, work on the ground with local and regional organizations and institutions and all other stakeholders. And we don't just have an open and transparent dialogue with all of them. We also searched for waste but the company can contribute to improve their well-being. And we do this through initiatives, which for great main -- 4 great areas of inequality, digital divide, generational, territorial and gender gap. And in this way, we have built relationships of trust so that we can obtain the social license we feel we need to operate. A good example of the application of this methodology is the work we have done with 30 different municipalities in Catalonia to design transmission line, which has been a consensus project valuable for all protecting the birds of era, but also promoting the community support by moving the line outside the boundaries of the biggest municipality as their counsel requested. In 2023, we're reinforcing this approach with an integrated impact strategy, which is a new framework that will help us to identify, organize and activate under the same umbrella, all of our positive, social and environmental impact actions. Those are the first and knows that we're going to start now and with this contribution, we will multiply the impact of our struggle against inequality in order to focus on social issues as much as on environmental ones. We will be playing a more proactive role. That is we will not just compensate our negative footprint, but actually strive to have a positive impact, which means we will extend our actions to the whole geography of the country and not just to the areas around our facilities. And this connection with society is in line with our 2030 sustainability commitment, which is horizon with a long-term vision. We will develop a business that will be respectful, honest and responsible to leave a better well than we found. Big corporates have the duty of integrating sustainability in their strategy and to extend it to our whole supply chain so that our activity will create value for all. It's our responsibility and it's the only way to guarantee our survival because there can be no economic profitability if there's no social profitability. And that's why we believe in ethical capitalism in order to create value for shareholders but also for society as a whole. It's a way of moving beyond philanthropy and corporate social responsibility in order to drive a competitive social transformation. This position has meant that year after year, we've been identified as one of the most sustainable Spanish corporates. According to the used taxonomy regulation, that Electrica's activities are 100% environmentally sustainable and 79.2% of our net profit is eligible and aligned. Our leadership has also been supported in 2022 by recognition of prestigious international indexes like Dow Jones, Euronext-Vigeo Eiris, FTSE4Good, MSCI. Also, we have obtained the FQM 700-plus certification. We're only -- we're one of only 4 Spanish companies that have obtained this certification and just a few examples of Redeia's social contribution and that's why in October last year, and after having achieved 98% of the 2022 sustainability plan, we have now launched the new '23, '25 plan. These are 14 lines of action, 87 different targets and 190 actions with which we will move beyond ESG, promoting a competitive social transformation in order to have a positive impact on our environment, on people and the organization as we have done in 2022. This new plan is available to all of you since it is included as one of the items for the information of this general meeting. So looking after the environment is therefore one of our great priorities, which we have been implementing through the consolidation of our natural assets and the ways of life of communities. We have continued to fight in order to mitigate the impact of climate change by reducing our carbon footprint. In 2022, we have reduced our Scope 1 emissions. And we have set for 2025, the target of reducing our Scope 1 and 2 emissions with 30% and offset 100% of our Scope 1. We've also achieved a specific commitment to [Foreign Language]. And as always, we continue to design our infrastructures with sustainability criteria, applying corrective and preventive measures during the construction and maintenance of our facility in order to promote their integration in their environment and their positive impact on the environment. A good example of that is environmental concrete, which we've used in the submarine connection between Lanzarote and Fuerteventura. We already have evidence that it contributes to biodiversity throughout its itinerary. And I could mention other initiatives in the area of the circular economy, but we've developed an enough supply life cycle analysis methodology looking at the use of recyclable, reusable materials, their source and their carbon footprint. And in this way, we can quantify the main environmental impacts and guide our procurement policy to more sustainable and efficient supplies and therefore, move towards the goal of having a secular supply network by 2030. I think Redeia is increasingly being recognized because of its social innovation approach through which we worked partnership with a third sector, local actors and other companies in order to reduce digital, generational gaps, particularly in non-urban environments. We've had a direct impact on 38,000 people in 2022 and 500 municipalities. For example, there's the project for the cyber volunteers foundation. We've also launched professional training, positive energy in Granada with the high commissioner against child poverty in order to prevent school dropouts and we have worked on an energy transition line together with 30 rural development groups and regional energy agencies. And of course, we've contributed to support rural entrepreneurs through the platform, a well-known Holapueblo initiative. And even though we already launched it in 2023. I'd like to mention Emera, which is the digital school for energy transition together with the Spanish Federation of community colleges. Another pillar of our sustainable focus is our focus on people to the deployment of our ethical just culture, supporting equality, diversity and supporting our teams. Teams which make up the soul of the family with outstanding professionalism and dedication including such values as promoting social dialogue through which we've been able to achieve collective agreements with the unions that represent Red Electrica employees. All of the unions have been signatories of this agreement. In all of our footprint, which demonstrates the scope of this agreement. And from here, I'd like to express my recognition and I think I speak on behalf of the whole Board. The result of these 2 negotiation processes and high inflation context, which made it very difficult for all parties at the negotiating table. In this context, it's more important than ever to have good labor relations. It's a permanent dialogue with the workers and the representatives. And all of it with the aim of continuing to build together labor rights and responsibilities by all parties. And in 2022, we've made progress on 2 crucial elements of our integrity strategy. We've developed a new due diligence model for integrity and human rights in order to make sure that the third parties we relate with are aligned with our values and ethical principles as well as a new corruption prevention model, which extends its scope of application to such relevant aspects as internal fraud or conflicts of interest. We've also approved a new model to manage our ethical and compliance channels through which we've established a secure, anonymous information channel for all our stakeholders. And since, of course, we must lead by example, last year, we developed a new leadership model with 3 themes, perception surveys, labor environment surveys and performance assessment for the management team with ethical behavior metrics. And we've continued in 2022 to work to become a model in gender equality. We have clarity in the Board of Directors with 1 of the 3 few -- the only 3 companies in the 35 chaired by women, and we're still part of the Bloomberg Gender Equality Index. Last year, the percentage of women working for Redeia rose to 27.9% and for the third year running, we've increased the number of women executives, which is currently at 35.3%. So we've exceeded the 35% target that we had included in the diversity plan for the period 2016 to 2022. But of course, we want to continue to make progress in this area and that's why we have now set a target of 38% for 2025. We know that put an entry in quality, we have to deal with the root cause of the problem. That's why last year, we launched 2 additions of Red steam. It's an initiative I'm particularly proud of and with which we promote female scientific talent from the earliest phases of education. I would now like to dwell on our governance model for a moment. Redeia's success is driven by a robust transparent corporate governance model. In 2022, the Board has continued to move in this direction with some new milestones. In order to consolidate our sustainable commitment with shareholders, we've continued to meet with proxy advisers led by our Lead Director. After launching the Redeia brand, the Board has agreed that the company's website now become www.redeia.com, including the legally established objectives and contents for listed companies as well as other interesting content on our activities. In the sense, we are proposing a resolution to modify the company by laws and the regulations of this general meeting in order to include the new company name, Redeia Corporación, S.A. Also, the Board of Directors has approved a new Board diversity policy, a new policy for director appointments so that we can have a still document with all the guidelines guaranteeing diversity in the broader sense,and the Board and in the selection and appointment process for directors. The Board has also approved a formal commitment who was the promotion in respect of human rights in Redeia and recently an update our environmental policy as well as the comments fight against climate change, biodiversity and the protection of vegetation and fight against deforestation. The Board has also appointed a director as a new member of the Sustainability Committee after being ratified and appointed as proprietary director by the Board of Directors in 2022. And we currently have 100% of the members of this committee as women -- are women. So in 2022, the Board has agreed to re-elect Carmen Gómez de Barreda Tous de Monsalve as Lead Independent Director for a new 3-year term. In the beginning of 2023, the Board has approved a new plan to promote the involvement of the Board with professionals at Redeia according to the best corporate governance practices in order to continue -- contributing to the cultural transformation programs and the talent development programs for people within the group. There are different initiatives, which will be deployed throughout the year, continue with the structure of the plan in 2022, but also with new lines and actions. We've also carried out a new services of the Board of Directors with independent external support and have approved the corresponding annual action plan. The Board has also updated the contingency plans for the succession of the Chair and the CEO as well as the annual program in line with our strategic plan. After the approval of the new 2023-2025 sustainability plan, which I mentioned before, we have agreed to submit for the first time to this General Shareholders' Meeting as a separate item in the agenda, a summary of this plan as well as the sustainability plan for 2022. Finally, I'd like to say that the Board is proposing to this General Shareholders' Meeting that you reelect Independent Director, Juan José Ruiz Gómez, who has the necessary experience and expertise in order to continue to help the company deal with the challenges in its strategic plan. This completes my review of Redeia's sustainability efforts, which you can consult in our sustainability report, which is available on our website. I'd also encourage you to participate in the upcoming sustainability sessions, which we'll be holding in October, including two main new aspects. We're adapting our reporting model to the European Director of Corporate sustainability reporting. We will be anticipating the requirements of this European regulation in 2024, we'll be presenting our first integrated report, which will combine financial and nonfinancial reports. It's definitely a governance and internal control challenge on which over 100 people are working already within the company. And secondly, we are now involved in a process to measure our social, environmental and economic impact, although we don't have any regulation that requires it yet or any standard methodology. Following the phases defined by -- for protocol and the University of Comillas, we've identified some positive and negative impact metrics connected to our activity, which will help us identify the social value we've generated in a tangible homogeneous way. And later, we will be able to share more details with you. I would now like to conclude speaking about the future, a future that we must face following the principle of Heraclitus, whereby nothing is permanent except for change. And we're living at a time of accelerated change with different forces, which either technology revolution or the risk of climate collapse having an impact on our economy and therefore, affecting the present of companies and their future. And that's why, as I said at the beginning, I'd like to repeat now, given all s uncertainty, we need to be flexible and adaptable. And that is the way in which Redeia is maintaining its leadership in a world of permanent change. In the last year, we have adopted a methodology with broad contribution from different areas within the company and our research department, so we can identify and analyze social, economic, environmental and technology trends and then create different possible scenarios. These perspective analysis allows us to understand current and future challenges, take informed decisions medium term and reinforce our strategic decisions. In fact, it enables us to identify some of the emerging challenges or risks that Redeia might be facing so that we can anticipate strategies that could help mitigate their impact on the company's plans and strategies. It also gives us the opportunity to contribute to progress in society, providing some external input on the 2050 horizon in line with the 2050 collective intelligence program developed by the government. This perspective vision helps us to complete the vision for the company's future, moving with Spain and the European Union to deal with the challenges ahead. The current crisis, of course, is also a window of opportunity so that the union can be strengthened. It's demonstrated that the EU project must include two great lines of action, enhancing its autonomy and its reindustrialization. That's why we have the road maps of the repower EU and the Greenpac industrial plan road maps, which have set the basis to resolve some strategic dependencies, including that on commodities and to maximize our leadership in the environmental transition. And Spain has a lot to say in this process. And I'll say very clearly that we feel like time has come because our potential in renewable energy sources offers the union access to locally generated energy with one of the best electricity grids in the world, and of course, with the expertise of Red Eléctrica as the TSO of the system. And that's why Spain has very strong position and we can count on Redeia's support at all times. But of course, we should not be too complacent. But in order to achieve this road map, there are many challenges ahead. First, we must continue to develop our transmission network, which will connect and transmit renewable generation and integrate new demand sources in the European Commission names such as Bill Gates or Paul Krugman or the economist in [ The Guardian ] have said the same thing, without transmission, there can be no transition. And in that sense, we need to accelerate our planning processes that they can respond to changing needs at any given time. Reinforcing international interconnections is also an urgent need if we want to share our renewable potential with the heart of Europe and use renewable sources in our neighbors when we need them. The future electricity system characterized by massive indication of nonmanageable energy sources will entail many challenges for the operation of the system, including self supply, which has been our great revolution, which is here to stay, and which the operator needs to clarify further. We also need to move in directions which are essential for this transition, including more deployment of storage and marine wind power facilities. And we must define how these generation facilities will be connected to the grid. We also need to move forward with renewable hydrogen electrification. All of this transformation require investments in technology innovations so we can develop smart networks and respond to growing social and environmental demands. It'll also mean participating in supply chains, which are already under a lot of pressure and subject to inflationary impacts. All of this must be translated into a change in regulated remuneration models so that they will reflect the cost of these activities and thus emphasize other factors beyond strictly financial ones. Also, a lot of these challenges will require a new regulatory framework, particularly one of its main pillars, the National Climate and Energy integrated plan, which is currently being reviewed to evolve more quickly so that it can respond to all of these change in demands. Of course, this transformation will require similar digital transformation, but we must make sure that it will contribute to more just and more secure societies. And in each and every one of these steps, Redeia, Spain and the countries in which we operate, will be partnering as facilitators and drivers for modernization, competitiveness and sustainability, always with the aim of providing essential public service, maintaining neutrality and independence as we have done since 1985. And all of this, thanks to the effort of our people at Redeia, I have the honor of celebrating today the first anniversary of the launch of our new brand with all of them. Redeia, as a brand, was launched in 2022 in this General Shareholders' Meeting in order to define who we are, a diversified solid group with a clear purpose model in the energy and telecommunication sectors, with 5 major companies, Red Eléctrica, Hispasat, Reintel, Redinter, and Elewit. A year later, with this drive and under the Redeia framework, we're still creating networks for life, defending the value of the essential. Thank you and congratulations to all. Thank you very much. And I'm now going to give the floor to our CEO, Roberto García Merino, so he can continue to share with this General Shareholders' Meeting some of the highlights of Redeia's activities in 2022.

Many thanks, Madam Chair, and good morning, everyone. It's a pleasure to be able to address you in this general meeting, analyzing the performance of our company over the last year and sharing the most relevant aspects of its management in a year in which we have continued to be in compliance with the commitments of our strategy plan, boosting our public service location, guaranteeing the quality of electricity supply and digital connectivity. 2022 has been marked by the terrible consequences of the Ukraine war, which has had a big impact on international geopolitics, aggravating inflation for the problems of supply chains and making it clear how vulnerable the European energy system can be. The context has shown that the energy transition and digital transformation are more necessary today than ever. Consequently, the role of Redeia is transcendental. That's why we are redoubling our efforts to ensure that we can guarantee this change takes place and does so faster than expected. Speeding up the compliance with our strategy plan with a significant increase in investments, mainly in facilitating their performance and the evolution of our electricity system to a more decarbonized module, designing an ambitious sustainability plan for 2023 to '25 in order to maximize our contribution to sustainable development and consolidate ourselves as the benchmark in sustainability. Thus, one of the main tools to progress in reaching our energy targets established in the National Energy and Climate Plan is the electricity plan covering 2021 to '26 approved by the government last year, establishing important challenges for our company with investments in the transmission grid of close to EUR 7 billion. Thus, it becomes the mainstay of our strategy plan, giving us an excellent road map to move ahead with the energy transition and projecting a country with cleaner energy and more interconnected and joined together. From the moment it was approved, working indeed before it was approved, we've been getting into enormous projects to have greater interconnections with our neighbors, establishing underwater links between non-mainland systems and new lines whilst modernizing the existing electricity infrastructure. Most of the investment is to integrate renewable energies in order to consolidate an electricity system with 67% renewable production in 2026 with the interim goal of reaching our 74% target established for 2023 in the national plan, which is why it's so important to have more flexible development and execution of the projects, intensifying our efforts to work closely with those who are working on the ground, establishing active listening to local communities' needs and sensitivities. We're also boosting the development of telecommunication networks both in fiber optics and in satellites to get universal connectivity, which can eliminate the digital gap and make it possible for everyone to have equal access to telecommunications. So in February, we increased our satellite capacity with the launch of Amazonas Nexus, a geostationary high-performance satellite, which can reach the most remote places on the planet. You can see that we are trying to deal with the challenges facing us, acting with professionality to get excellence and take advantage of the talent of more than 2,400 employees in Redeia. We're doing that through transparent, responsible management of a business model whose mainstay is the guarantee of the electricity supply, connectivity, sustainability and innovation. I now will analyze the management of our activity as an operator and transport agent in the Spanish electricity system. In 2022, we've worked very hard as TSO in order to guarantee the quality and continuity of supplies, maintaining high service quality levels in the electricity grid with an availability rate in our transmission grid of 98.2% nationwide. At the same time, we've maximized the integration of the greatest possible volume of renewable power into the electricity grid. I'd like to highlight that we've significantly increased our investments this year in the management and operation of electricity infrastructures in Spain, reaching EUR 530 million. That's a growth of 25% year-on-year. This is a fundamental milestone in the achievement of our medium and long-term targets. In 2022, we've continued to make progress in the sustainable development of our transmission grid commissioning 326 new kilometers of new lines, 109 positions in substations and infrastructures for the evacuation of new installed renewable capacity, the connection of electricity systems and the link up with rail lines. The -- we've constructed the first stretch of the Caparacena-Baza-La-Ribina stretch, a set of infrastructure to increase the capacity of our grid to take more advantage of renewables. Then the [ Northen littoral ] line to the evacuation of renewables from Asturias to Cantabria and the Basque country, where in 2022, we've continued to work on the construction of the Guenes-Itxaso line and have commissioned the underground line, Astillero-Cacicedo, working in the Santander Bay supply. And then the Caletillas-El Rosario line commissioning the substation in Caletillas in Tenerife and the Santa Águeda-Arguineguin line along with the substation in [ Savannah ] in Gran Canaria to increase the reliability of the transmission grid and the security of supply on both islands. I should also mention the relevant progress made in the development of island interconnections with the undersea link being commissioned from Lanzarote to Fuerteventura progressing in the construction of the interconnection of Ibiza with Formentera and obtaining the declaration of general interest from the Canaries government for the Tenerife-La Gomera interconnection. These are the 3 links that will significantly improve the energy transition in the Balearic Islands and the Canary Islands. And we continue to deal with the arrangements we have to make to link up the mainland with [ shelter ] through power lines. Looking at international interconnections, Red Electrica is contributing to the consolidation of the great European market electricity, although our country is still very similar to an energy island. We've been working on the electricity interconnection with France through the Bay of Biscay project, which has continued to be rolled out by -- through Inelfe with the main contracts already established and sharing out the costs between the French and Spanish regulators. So we are ready to start works before the year is out. The interconnection in the north of Portugal is moving towards the end of the initial arrangements that have to be made with the declaration of a favorable environmental report. I should remind you that both of these interconnections are enormously relevant in order to achieve the European energy targets. Another important milestone in the year was the beginning of work at the Salto de Chira pumping station in Gran Canaria and that's proceeding smoothly. And this year, 2023, will be key in this project because of progress in the construction of the desalination plant, but also with the beginning of the underground works, which will lodge the plant's equipment and all the work required to transport the water, coming from the desalination plant. As you know, this is an energy storage infrastructure, which is technological breakthrough and key for the Canary Islands energy transition because the relevance of this investment and its impact on our strategy. I'd like to refer to the approval of the remuneration methodology for this plant, which for the first time includes recognition of remuneration for ongoing works. I'd also like to mention the decisive contribution we have made as TSOs to the construction of an increasingly decarbonized electricity grid. Currently, over 60% of total installed capacity in Spain is already renewable power. And in 2022, our renewable energy control center has once again enabled a secure integration of a record quantity of wind and solar energy, making it possible for 42% of our electricity generation in the country will come from renewable sources. These are enormously relevant milestones, which have been achieved in a year of adverse weather conditions with very little rainfall and in fact, the most severe drought in the last -- of the last decades. If we look at our telecommunication activities now as well as our international electricity businesses, 2022 was a very good year for our diversification businesses. A good example of that are the objectives we've achieved in our international businesses, including the commissioning of the Tintaya-Azangaro Transmission Line in Peru, the Nueva Pozo Almonte-Parinacota Line in Chile and a very relevant acquisition through Argo Energia of 5 concessions for a total of over 2,400 kilometers of transmission lines in Brazil, which has almost doubled the size of our Brazilian subsidiary, which we manage with our partners from the Grupo Energia de Bogota. In our satellite business, Hispasat is moving forward with its strategic plan with significant milestones, including especially the launch of the Amazonas Nexus satellite I mentioned before. We hope that this new satellite, most of its capacity already on the contract, will be operational in the coming months once it reaches its target orbit. And the impact on the company's earnings will be visible in 2024. Also in August last year, Hispasat acquired access network, which is a satellite connectivity, video and data transmission and Internet access company, which will enable us to establish a fully integrated vertical in the satellite sector. Hispasat has been the only company that has been awarded funding from the Unico Demanda Rural program of the Ministry of Economic Affairs and Digital Transformation, a total of EUR 76 million to guarantee broadband access of at least 100 megabytes per second with a flat fee of EUR 35 a month in order to end the digital divide in rural areas with no Internet access in Spain. And finally, a few weeks ago, Redeia satellite subsidiary announced its bid like together with other European sector giants like Airbus and Eutelsat and SEC and Thales in the used tender for the future IRIS satellite constellation as for the fiber optic business, which has also very positive performance in 2022. I'd like to remind you that last year, we sold our minority stake 49% of Reintel, which has enabled the company to achieve triple objective. First of all, to capture the value of strategic assets; secondly, to bring in a long-term investment partner, KKR, which will enable the development of these assets and increase their potential to create value. And finally, the significant incoming cash flow, which has improved our balance sheet and enabled us to enhance our payout policy. And this review of the company's businesses, I also like to emphasize, our continuous focus on innovation through Elewit which is our platform for technology innovation and development. In 2022, we've managed 79 projects with innovation investment of EUR 8.3 million. And additionally, we've invested EUR 23 million, which means that total investment in innovation and technology development of EUR 31.3 million in the year. We will continue to sponsor innovative projects, partnering with best actors in the innovation ecosystem in order to turn challenges into solutions so that we can contribute to the energy and connectivity transition we need for a more sustainable future. Another commitment we have made is to guarantee our financial strength in order to be able to fund a very demanding investment plan we have for the next few years, reinforcing our commitment towards sustainability and sustainable finance and increasing our leadership in green finance. This January, in fact, we issued our first hybrid green bond for a total of EUR 500 million, funding which enables us to strengthen our capital ratios in order to continue to undertake investments included in energy plan '21, '26 and promote Spain's energy transition. With this hybrid bond, currently 46% of our funding is ESG driven, and we continue to work to increase this percentage within the framework of our sustainable finance in line with the used taxonomy so that we can achieve 60% by 2025 and 100% being financed by 2030. In this sense, I should point out that 100% of Red Eléctrica's activities as TSO of the Spanish electricity grid are environmentally sustainable and certified by the taxonomy regulation as an activity which substantially contribute to mitigating the impact of climate change and to adapting to it. In this sense, almost 80% of the group's core investments are eligible under the European taxonomy, which demonstrates Redeia's commitment with sustainability as a key element in the group strategy. Also 47% of our shareholding are socially responsible investors with -- which is above the sector's average. I will now like to go through the main metrics of 2022, which have been stable in spite of the difficult context we faced. In this sense, we can say that this last year has been a good one, a year in which our main metrics -- our current metrics were higher than those of 2021. So our turnover has increased in all the group's activities, except those of the national regulated business, which closed the year with lower revenues due to the application of the ministerial decrease with defined remunerations for transmission for the period 2016, 2019, which has meant a difference of EUR 35 million between the final remuneration and the remuneration that we were reflecting in our financial statements. As for operating costs, I should mention the one-off impact of the critical asset maintenance plan to reinforce the security and reliability of our transmission network, which will end this year 2023. These nonrecurrent effects have been practically completely offset by our better contribution to the EBITDA of our satellite and international businesses so that the total of 2022 is in line with the previous year. The group's revenues, which include our turnover and the results of our equity stakes, have increased 4.2% year-on-year with EUR 2.065 billion. That's due to the excellent performance of our diversified businesses. Specifically the electricity -- the international electricity business revenues have increased by EUR 47 million because of more core businesses as well as the acquisition of Rialma and the 5 new transmission lines in Brazil. Whilst the revenue of our satellite business, EUR 41 million more this year due to bigger turnover. We've also seen growth in our fiber optic revenues because of the positive impact of the inflation link in most of its contracts. If we now look at the evolution of our operating costs, it's easy to understand, we will separate like-for-like and noncomparable costs. The noncomparable operational cost have increased by EUR 147 million. That's basically because of 4 items. First, deployment of the critical asset maintenance plan, EUR 48 million; second, expenses derived from the change in our perimeter and the new business lines in the group, EUR 23 million. Thirdly, costs connected to the construction of the Salto de Chira pumping station, EUR 60 million. And finally, a provision of EUR 16 million connected to the negotiations, different collective bargaining agreements in the group processes which as you have heard before, have now completed the signing of these collective bargaining agreements for the corporation and for Red Eléctrica. As for the like-for-like operational costs, they've increased very little, only 3.4% due mostly to our constant focus on efficiency in spite of the high inflation context in the year. In this sense, our EBITDA, EUR 1.491 billion, that's 0.5% lower than the previous year's, has been impacted by nonrecurrent effects on TSO activities after the regularization of remunerations and the higher expenses of that special maintenance plan I mentioned, which have been practically completely offset by the excellent performance of all other business lines in the group. Excluding the impact of those remuneration adjustments, our EBITDA would have increased 1.8% to EUR 1.526 billion. Also, the net profit in the year was EUR 665 million. That's 2.3% lower than that of 2021. In like-for-like terms, profit would have been EUR 691 million, 1.5% higher than the previous year, which demonstrates the effective management we have carried out in this very complex year. And as for investments, total volume increased by almost 80%, driven by significant progress in these national and international projects with EUR 1.032 billion. Amongst these investments, we should separate investments in core businesses, EUR 708 million. That's mostly the over EUR 520 million invested in our electricity business in Spain. The noncore investments of EUR 325 million, which include the acquisition of access networks for EUR 124 million. And the five concessions acquired in Brazil for a total of EUR 201 million. As for the group's financial ratios, our net debt closing of the year was EUR 4.6 billion, approximately. That's EUR 1 billion less than in 2021. a reduction which is mostly due to the payment of sale of 49% of Reintel as well as strong cash flow generation in the year. And as for our financial structure, I should mention that we have a very solid position with highly diversified debt, with 89% fixed rate to maturity and with a clear predominance of the euro versus other currencies, a structure which has enabled the average cost of the debt to remain at 1.62% this year, only 10 basis points higher than the average cost last year. As a result, our financial strength has been recognized by rating agencies, Standard & Poor's and Fitch, which have given us a credit rating of A- with a stable perspective in both cases. In fact, last Friday, Standard & Poor's once again confirmed this rating. And as for shareholder remuneration, the Board of Directors has proposed that this general meeting approve a complementary dividend be booked to 2022 of EUR 0.7273 per share, a complementary dividend, which will be paid out next July 3, plus the interim dividend paid in January of this year of EUR 0.2727 per share are up to EUR 1 per share in accordance with our commitments towards our shareholders and the markets. Now that we've reviewed the year 2022, I'd like to speak about the future and about our vision with regards to the performance of our businesses in 2023. After 2 particularly intense year, this year, we will be at the midpoint of our 2021, 2025 strategy. And the progress we've made so far make it that we are on track to meet the targets that we set 2 years ago. For 2023, I can announce that after several years in which annual investment for our regulated business in Spain was about EUR 400 million. This year, we will see a turning point with a significant acceleration of investments in the transmission grid. In 2023, we expect to invest over EUR 700 million level close to our record highs of 2010 and 2011. Internationally, we expect a good year with a greater contribution of these lines that we've acquired in Brazil as well as the commissioning of our lines in Peru and Chile, which will have a significant impact on EBITDA. As for our telecommunications business, the positive contribution of the new Amazonas Nexus satellite in the final months of the year will partially offset the end of some of the video services in Brazil, which will be clearly offset by 2024. And finally, we expect a very good performance also of our fiber optic business with stable revenues protected against inflation by contracts. With all of that, we expect that our EBITDA in 2023 be of over EUR 1.5 billion with net profit in line with that of 2022. Both metrics consistent with the stability, solid position of our business lines in a complex macroeconomic context. And to finish, I'd like to give you a quick summary of our strategic plan for 2025. First, and as a result of the investment efforts to enable the energy transition, we have increased our investment target for the 2021-'25 period, the initial EUR 4.4 billion to a figure of about EUR 4.8 billion, with an increase of 10% in the investments planned for the TSO. And also the latest acquisitions in Brazil, we've completed the organic and inorganic investment plans we had for international markets. And additionally, we reached over 49% -- or over 40% of our investment target in our telecommunications business. So in general, our investments are advancing as planned with an acceleration in the case of the TSO, also maintaining our financial guidance offering attractive shareholder remuneration with a solid financial structure. In this sense, I'd like to remind you that we have improved our payout policy guaranteeing a shareholder remuneration of EUR 1 per share in the 2020-2023 period and of at least EUR 0.8 per share in the 2024, 2025 period. Additionally, we continue to manage our businesses with a focus on operational and financial efficiency with an EBITDA margin of over 79% (sic) [ 70%]. And net debt-to-EBITDA ratio of under 5% -- of under 5x. And net debt ratios of under 15%, which means we will have a very solid credit rating throughout this period. So we're improving our targets for this period so that we can continue to drive the energy transition in Spain, through the major investments derived from the electricity plan 2021-2025 for the country. This is our commitment. And we will continue to work hard in order to achieve these targets and to realize the challenges we defined in our strategic plan. Thank you very much.

Thank you very much, Roberto. So now we can open the floor to questions from our shareholders. And I've been told that there aren't any questions shareholders attending over the remote attendance platform. We can hand over to the shareholders in the room who've requested the floor for a question, they have to come up to the microphone in order to speak. And I've been told to say that even if this general meeting is being streamed over Internet and is being recorded, we won't be publishing any individual pictures. Carlos Rafael Fernandez representing Antonia Pesaro Garcia, you have the floor. Just a minute, can you give the microphone to the shareholder or turn it on? Okay.

Madam Chairwoman, directors, shareholders, good morning. I'd like to discuss various matters, Madam Chairman. Certain media have been referring to a possible merger of the company with Enagas as has happened in Portugal and other European countries. We've also heard in the media the following: over recent years, the electricity transmission grid in Spain hasn't grown at a comparable rate to the rapid increase in renewable energies in the country. Areas have been created where the transmission and distribution grids don't have sufficient capacity to provide the available power to local inhabitants, which could lead to the interruption of the generation of waste. Solar energy and wind energy waste has increased more than 10x in 2022, compared to 2021. According to various analyses, these problems in the management of the electricity grid could lead to additional costs for consumers. I also should discuss another matter, which has to do with the way you do your business. The way that the company deals with its minority shareholders, you used to hold the general meeting in the Paseo de la Habana in Madrid. When you held the new general meeting in Alcobendas, there was a special bus set aside, and you then gave us a drink afterwards. But you've got rid of all of that. In sociological terms, when there's a socialist government, this does tend to happen. They appoint the chair to the company. And I'm saying this from the viewpoint of my own experience, apart from the fact that the share might be profitable for shareholders in terms of the way it's listed and its price, you don't seem to care about your minority shareholders.

Thank you very much, Carlos Rafael, and thank you to the shareholders as well that you're representing, Antonia Garcia Pesaro. I don't know if there are any more questions from any more shareholders. Okay. In that case, if there are no more questions, let's answer the matters that you just brought up. I'd like to thank you, first of all, for your interest and the fact that you made the effort to come here today. In the order that you brought the matters up, for the moment, the Board of Directors of the company isn't planning any study, even a preliminary study of any merger with Enagas. The energy grids in different countries are a matter that each government has to deal with as the government and so far, we haven't been informed of any such movement, either with coming from the other company, from us or from the government. So for the moment, were it to come up as part of the general plan, the governance bodies in the company would have to take the due resolutions as needed. And what you say about waste. Well, as you know, our electricity system is one of the most efficient and secure in the world. It is definitely because of the investment that's been made by the Center Control Electrical, especially from 2016 when we had the control center for renewable energies. It's unique in the world. And it means that we can massively ingest wind and solar power output, making it safe for domestic supply without in any way undermining qualities. In certain places, it's true the grid can get saturated at certain times when there's a high concentration of production of renewables in very specific points. And evidently, we take measures ensure that the supply isn't jeopardized in terms of punctuality or quality. With the electricity system in Europe, anything that has to do with renewables and waste is covered by the European regulations passed by the European Commission in Article 13, they talk about the admissible levels, which would consider to be 5% waste, where the penetration of renewables is lower than 50% of the total mix and greater when that penetration is higher. As I said in my speech, in Spain this year, 2023, we're above that 50% established. But when we look at the overall figures for the waste levels we've got, we're talking about 1.6%, which is well below that 5% that the European Union accepts. So that means that we're below that 15% of renewables input. And with already over that 52% input from renewables. And due to the restrictions, we're below 0.6%. And that's not just let below what the European Union accepts, but it's way below the values recognized in U.K., Italy, Germany and Denmark, but we never rest on our laurels. And we're spearheading new technologies all the time to take advantage of the rich renewable energies available, and we've got a lot of systems to improve on this. In order to have automatic reduction of power, so -- which no other country near us has so that we can take advantage of our grid structure for renewables and the dynamic line rating, which are devices to measure capacity on the distribution network to calculate the stations parameters over entire months to improve the lines on certain months of the year without in any way compromising the quality of the system. But of course, we are ready to take up as much renewable energy as our country can produce. And what you said regarding the way we hold this general meeting, I'd like to say as Chair of the Board that the independent directors and the proprietary directors are always standing up for the rights by minority shareholders, that has to be the case. And I know that they work very hard to ensure all due respect the decision to hold the general meeting here in our headquarters is analogous to many other listed companies which have made the same decision, especially after COVID. Holding the last meeting outside the company's headquarters was -- the last one was in 2018. In 2020, we wanted to be more sustainable in the way we hold our AGM, and we have been rated as having very high cost efficiency and energy efficiency. The difference between having the general meeting outside or inside the headquarters accounts for 47% of its total budget. So that makes the management of the company more efficient, enabling us to give the shareholders greater remuneration. I hope I've answered all your questions satisfactorily. And once again, I'd like to thank you for your interest and your deference in asking the company about these matters. If there aren't any more questions, and it seems there aren't any more questions and since the Secretary has already read the essential aspects of all the proposed resolutions put to the approval of this general meeting, I can deem it to have ended at [ 1:21 ] as we finish the period for voting, either for shareholders present in the room or voting remotely. And we will be informing you of the results of the votes and the Secretary will talk about the votes of the proposals made by the Board at the general meeting. I can say that you have been asked to vote separately on each proposed resolution with respect to the items and sections on the agenda that I read to you. Given that most of the shareholders present or represented haven't stated any objection, we deem these to have been read fully. Given the information that the Secretary just gave us on the votes of our shareholders, I can inform you that all the proposals filed by the Board of Directors and put to this general meeting separately for approval have been approved by the sufficient legal majority in each case. I should indicate that today we will be publishing on our company website what the percentages were and the number of votes in favor, votes against, abstentions and blank votes for each the votes for each of the proposals put to this Annual General Meeting. Having transacted all the business on the agenda, the notary will authorize the minutes of this general meeting, which will soon be available to all the shareholders who wish to see it in the next few days. Shareholders, we can now bring this general meeting to an end. As I said, it's been certified as a sustainable event. And we -- characterized by the fact that we always move forward to ensure that our business and knowledge will serve progress in Spain and Latin America. Nowadays, electricity and telecommunications infrastructures are strategic for consolidating the 2 great transformations of our time, in the environment and in digital transformation. And we're firmly convinced that this is the only way to guarantee a sustainable future the European Union and it's necessary reindustrialization. In 2022 and so far in '23, we've demonstrated our commitment and our vocation for service, neutrality and transparency, which are our hallmark and with the support of more than 2,400 members of our organization. And it's our employees who are the very soul of Redeia. And I'd like to thank them for underpinning everything that Redeia is doing in developing the well-being of the communities where we operate. And I'd also like to thank all the support people, the people in internal branding and shareholder relations and the interpreters in sign language and in English and the managers who are here and everyone who has made it possible for us to transact all the business in this rather complicated event. And I hereby adjourn this Annual General Meeting of the company to cover business from 2022, and I wish you a good day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]