Growth based on investments in electricity networks and a selective approach to renewables
Improving earnings quality and protecting balance sheet strength through geographical diversification and a prudent financial model
Highlights: – Record investment plan of €47bn to 2025, driven by organic investments in all markets and PNM Resources transaction. – Strong financial ratios during the plan are comfortably within thresholds for current ratings, thanks to a model based on fixed-rate financing, long-term maturity profiles, active liquidity management and optimization of green financing, with no capital increases expected and supported by asset rotation. – €27bn (57%) of investment in electricity networks to increase asset base reaching €56bn by 2025 – providing predictable frameworks and protection from macroeconomic uncertainties. – €17bn of investment in renewables to deliver 52GW of renewable installed capacity by 2025 – based on projects with the best risk/reward profile and a high-quality pipeline. – More than 80% of investments allocated to A-rated countries with stable regulatory frameworks and ambitious electrification targets: improving geographical diversification through additional focus on countries like Germany, France and Australia. – EBITDA reaching €16.5-17bn by 2025 (8-9% CAGR), with net profit increasing to €5.2-5.4bn (8-10% CAGR). – Dividend to grow in line with net profit (65-75% pay-out) to between €0.55-0.58 in 2025, with a floor of €0.46 in 2023-24 and €0.50 in 2025. – The company reaffirms its ESG credentials: – Targets to become carbon neutral by 2030 in scopes 1 and 2 and reaching Net Zero in all 3 scopes by 2040 – 12,000 new hires to 2025, supporting more than 500,000 jobs by 2030 along its value chain. – Reaffirming 2030 outlook driven by growth in all markets and acceleration of electrification: investments of €65-75bn in 2026-30 to exceed 100 GW of capacity and €65bn of networks assets.
