Redeia Corporación Aktie

Good morning, ladies and gentlemen. We are going to begin our earnings presentation for the first half of 2026. We'd like to welcome everyone who's joining us on the phone and on our webcast. Joining us today, we have Roberto García Merino, Chief Executive Officer; Carlos Puente, Corporate Director, Strategy and Diversification; and Emilio Cerezo, Corporate Chief Financial Officer. I'll now hand over to our Chief Executive Officer, Roberto García Merino.

Thank you, Sal. And thank you, everyone, for joining us in this earnings presentation for the first half of the year. Allow me to begin by referring to the environment in which the company is carrying out its business and the most significant milestones in the period. And then our Corporate Director of Strategy and Diversification will discuss the main metrics and the progress made in our strategic projects. Afterwards, our CFO will go into greater detail on the numbers for the period before we conclude by reminding you of our view for the 2026 year-end.

Let me begin by giving you a bit of context about the company's activities, a key sector for the energy transition marked by electrification, the integration of renewables and the need to guarantee a secure, efficient and resilient grid. In the last months, we have entered a particularly relevant stage of the electricity sector in Spain and globally since grids have moved from being merely a supporting infrastructure to becoming an essential component of energy security and of the transition towards a more electrified model.

The geopolitical context has highlighted the importance of having robust, resilient infrastructures ready to integrate renewable generation locally. At the same time, demand growth connected with electrification, industry and new consumption vectors like AI and data centers require faster investment in transmission grids, interconnections, storage, digitization and cybersecurity.

In addition, the European Commission recently published a proposal and an action plan for electrification, which confirms Europe's commitment to accelerate demand electrification in industry, transport and the residential sectors. The proposal to set an indicative electrification target of 46% by 2040 aims to reduce our external energy dependence, increasing our energy security and achieving more competitive prices for consumers.

To achieve these objectives, investment in grids is essential and Red Eléctrica remains committed, as it has been to date, developing and improving the electricity transmission grid in an agile and efficient manner in order to serve current and future demand, benefiting from a sustainable, secure and competitive electricity system. For Redeia, this environment, therefore, represents a historic opportunity and a structural change for the company.

Our role as electricity system operator and transmission operator is key to ensuring that the electricity system can absorb more renewables, respond to new consumption patterns and volumes whilst always maintaining security of supply. At domestic level, Spain continues to move quickly in the transformation of its electricity generation mix. Renewable generation still at very high levels, close to 60%, confirming the strength of the decarbonization process and our country's distinctive role within Europe.

And this progress is not just about generation. For more renewables to enter the system efficiently, we need a grid capable of transporting that energy from the points where it is generated to the centers where it is consumed. And that's why the expansion and modernization of the grid is an essential precondition to capture the full value of the energy transition.

If we look at the recent evolution of the Spanish electricity system, we see a very relevant signal. Demand has returned to growth in recent years. But perhaps even more importantly than the growth in energy demand is what we are seeing at moments of peak system demand. Demand peaks are increasing, confirming the need to continue reinforcing the grid in order to accompany the electrification of the economy. It's not just higher annual demand, but also greater instantaneous power needs that the system must be able to meet with complete security.

Amongst the factors influencing the shift in trend are the growth of industrial consumption and the increase in final electricity uses like heat pumps and electric vehicles. Also, long term, we expect very significant growth in demand due to the growth in deployment of data centers, electrification of ports, industry and transport, railway corridors and battery factories. It is therefore clear that investment in grids is becoming a strategic priority.

Renewables are transforming how electricity is generated. Electrification is transforming how it is consumed, and it's the transmission grid that makes both possible. Our investment plan responds precisely to these needs, integrating more renewables, moving with the electrification of the economy and preparing the system for a more complex environment. It's not just about more capacity, but about a smarter, more flexible and more secure grid. For Redeia, this translates into a solid platform for growth with a direct contribution to the energy transition and the -- country's competitiveness.

Now that we've analyzed the sector context in which we're operating, I will present the most significant milestones of the first 6 months of 2026. During the first half of the year, the TSO has maintained a solid pace of investment, which reached EUR 631 million. That's 12% more than in the same period of the previous year. Of this amount -- EUR 551 million corresponding to investment only in the transmission grid. This performance enables us to anticipate that the TSO's investment will reach and probably exceed EUR 1.5 billion by year-end.

This increase once again demonstrates our commitment to reinforcing critical infrastructure, improving the quality of supply and responding to the needs of the system. I'd also like to highlight other relevant milestones in the period. First, yesterday, the Council of Ministers approved the third amendment of the specific aspects of the 2021-2026 plan with a planned investment of EUR 615 million. This proposal includes actions aimed at increasing the resilience of the electricity system and reducing electricity costs for consumers.

We also approved the grid investment cap through to 2030, which was an essential step for the approval of the new 2025-2030 plan. In addition, the Council of Ministers has commissioned Red Eléctrica with the construction of the Güímar pumped storage hydroelectric plant in Tenerife with a capacity of 200 megawatts. It's a strategic infrastructure for the Canary Islands electricity system and strengthening storage capacity and facilitating greater integration of renewable energies.

This project is similar to the Salto de Chira project in Gran Canaria with an investment of over EUR 1 billion over the next decade. This award represents a very relevant milestone for Red Eléctrica, reinforcing its role in the deployment of essential infrastructure for the energy transition, opening up a new long-term investment factor. And in the financial area, EUR 154 million has been received from the Recovery, Transformation and Resilience Plan as well as EUR 158 million in grants linked to congestion income to finance the Spain-France interconnection.

In addition, in April, a 6-year EUR 500 million hybrid bond was issued at an interest rate of 4.375%. We currently have EUR 1 billion in hybrid bonds. And as envisaged in our strategic plan, our goal is to increase this figure to EUR 2 billion, thereby consolidating a solid financial structure aligned with our long-term investment needs.

Finally, I'd like to highlight a particularly significant achievement for Redeia. For the first time, we've been recognized by Standard & Poor's as one of the most sustainable companies in the world, positioning us amongst the top 1% globally for sustainability performance. Only 2 companies in Spain have obtained a similar result and 70 globally. This recognition endorses our commitment with creating sustainable long-term value and reflects the progress made in recent years, moving from the top 10% to the top 1% globally in just 2 years.

I'll now give the floor to Carlos Puente, who will explain the main figures for the period and progress made in our strategic projects.

Thank you very much, Roberto, and good morning, everyone. As you've heard, the semester has seen very relevant operational, regulatory and financial milestones, reinforcing the delivery of the road map that we presented to the market in February. This evolution is reflected in a widespread improvement of the group's main indicators. Particularly noteworthy is the 9% increase in investments, which I will analyze later, and the growth in our net profit, reaching EUR 280 million. That's 4% more than in the same period of the previous year.

I'd also like to remind you that after approval by the General Shareholders' Meeting on July 1, a final dividend charged to 2025 results of EUR 0.60 per share was paid, thereby fulfilling our commitments with the market with a total dividend booked last year of EUR 0.80 per share. We now move to an in-depth analysis of our investments during the first half of the year. During this first half of the year, Redeia has invested EUR 657 million. Of this amount, as previously mentioned, EUR 631 million corresponding to TSO investment.

This figure reflects the significant investment effort the company is making to accelerate the development of the transmission grid in Spain. Regarding Red Eléctrica's main projects, I'd like to highlight the following. The progress has been made in the electricity interconnection between Spain and France with the Bay of Biscay, which continues to be executed on schedule. Civil works are well advanced, and we began receiving the first power machines in the Gatika converter station. The objective is to commission the first link in 2027 and the second in 2028.

Also progress in the second interconnection between the Iberian Peninsula and the Balearic Islands, including the new high-voltage direct current link between Castellón and Mallorca. This project is complemented by other key investments to move forward with the decarbonization of the Balearic electricity system, including the installation of synchronous compensators in Mallorca and the deployment of battery storage systems in Menorca and Ibiza.

Also progress in the Transmanchego axes and the La Sagra axes, 2 key initiatives to reinforce the electricity corridor between La Mancha and Madrid, eliminating technical constraints on the grid and facilitating greater integration of renewable energy generated in Castilla-La Mancha. During the first half of the year, progress was made in the environmental and administrative permitting of the different sections.

The Morella-La Plana axes, a key initiative to reinforce the transmission grid along the Mediterranean coast, has reached an important milestone with the granting of the administrative construction permit. Project continues the execution phase with a target commissioning date of 2028. The Itsaso-Castejón-Muruarte line project has recently obtained the main administrative authorizations to begin execution. This project is a key initiative to reinforce the meshing of the transmission grid in the north of the Peninsula, increasing transmission capacity between the Basque Country and Navarre and facilitating the integration of renewable generation. This infrastructure will also contribute to maximizing the use of exchange capacity with France.

Finally, and regarding our Salto de Chira project in Gran Canaria, we've completed the drilling of tunnels and galleries and practically all the cavern excavation. In addition, works continue on the hydraulic circuit and testing has begun on the desalination plant. The project is therefore on schedule with commissioning expected for 2028. I'd also like to underscore that 96% of our investments are eligible under the European taxonomy, reinforcing Redeia's commitment with sustainability.

In short, and in line with the objectives of our strategic plan, we continue to increase our execution capacity and making progress on the investments that will drive Redeia's growth in the coming years. Let's now review the results of the first half of the year. If we look at the P&L as a whole, I would emphasize the excellent performance of all lines during the first semester.

The contribution of regulated businesses to our EBITDA exceeds 90% at the end of June. And this is a particularly relevant figure because it confirms that the growth of our regulated activities continues to strengthen the quality, recurrence and visibility of our earnings. And to give us more details about these figures and the results of the semester, I'm going to hand it over to Emilio Cerezo, our CFO.

Thank you, Carlos, and good day, everyone. Group revenues increased by 6.8%, driven mainly by the regulated business in Spain. New facilities entering service net of grants and higher regulated revenues for the system operator after the update of remuneration parameters for the 2026-'28 period contributed to this performance. In addition, in 2026, there was a change in the regulated useful life of repowerings from 40 years to 8 years for the entire asset base from 2022 onwards.

This change involves a positive impact on first half revenues of EUR 24 million, including the nonrecurring effect of the regularization of revenues from previous years. The international business declined due to lower third-party projects in Chile, the depreciation of U.S. dollars versus euros and lower results from Argo in Brazil as a result of higher financial expenses following the increase in company leverage after the dividend distribution in 2025. These effects were partially offset by the good performance in Peru and Chile.

At the same time, the fiber optic business was affected by contract renegotiations according to plan in the context of market consolidation, partly offset by the effect of inflation and CPI-linked contracts. Operating expenses show an increase of 8.9%. However, excluding expenses with the counterpart and other operating income such as the progress of works in the Chira-Soria project and those linked to the damages caused by the 2025 weather event, growth was somewhat lower at 7.6%.

Staff expenses also increased due to a higher average workforce required to address the strong growth of assets in the group. And external expenses increased due to higher asset maintenance costs, system operation, project costs and other general expenses. The evolution of revenues and expenses leads to an EBITDA growth of 5.8% compared with the previous year, thanks to the contribution from the TSO.

However, without the positive effect of this change in the regulated useful life of repowerings reaching EUR 24 million, comparable EBITDA growth stood at 2%. We should also highlight that the aforementioned EUR 24 million are fully neutralized at EBIT since depreciation and amortization increased by the same amount. And to conclude with the income statement, net profit reached EUR 280 million or 4% higher than in the first half of the previous year for several reasons.

Depreciation and amortization increased linked to higher assets in operation and the change in the regulated useful life of repowerings. Also, the financial result improved by EUR 4 million as a result of lower financial expenses than in the same period of '25, mainly due to the placement of cash surpluses and higher capitalization of financial expenses in projects associated to the higher investment volume. These effects were partially compensated by a higher average gross debt and a slight increase in its average cost.

And finally, the corporate income tax was in line with the previous year with an effective rate, excluding the result of companies consolidated under the equity method, of 24.6%. From a financial perspective, the group's net debt stands at EUR 5.009 billion or EUR 465 million under the values of 2025. In addition, the group maintains EUR 1 billion in hybrid bonds, which are fully recorded as part of equity.

The generation of a solid operating cash flow of EUR 518 million, funds raised through the hybrid bond issued in April and the receipt of grants from both congestion income of EUR 158 million and PRTR funds for EUR 154 million offsets the group's strong investment effort and the payment of the interim dividend. Thanks to all that, we preserve a solid financial structure with a net debt-to-EBITDA ratio of 3.9 and an FFO to net debt of 22.1%. Finally, about our credit rating, we maintained a BBB+ rating, both by Standard & Poor's and by Fitch. So back to our Chief Executive Officer.

Thank you, Emilio. And now to conclude this results presentation, I can only tell you how we expect the company's performance to evolve in the second half of the year and how we expect to close 2026. I would like to insist that the results obtained during the first half of the year and the expected performance on the coming months allows us to confirm our outlook for 2026 in line with the objectives presented in our strategic plan for '26-'29.

Therefore, we expect to close the year with a net profit exceeding EUR 510 million and a growth of dividends per share of 2%. In parallel, we will continue to make progress in the execution of our investment plan. In 2026, TSO investments will reach and probably exceed EUR 1.5 billion, showing the significant effort made in recent years to progressively increase our execution capacity.

In this regard, we moved from a phase of accelerating activity to a phase of consolidation and pursuit of efficiency. After several years, we have finally reached cruise speed, enabling us to face the challenges of the new electric planning with confidence. In short, a very positive first half of the year, allowing us to envisage a year-end in line with what we announced in February and constituting a solid start to our new strategic plan. Thank you very much for your attention, and we are available to answer your questions now.

[Operator Instructions] The first question coming from Ignacio Doménech from JB Capital.

I have 2 questions. The first one is about approval of the investment cap. I wanted to understand your perspective on that aspect. And as for -- on the side of planning, what are your forecasts for your potential investments starting with that EUR 0.5 billion in 2026. My second question is about potential improvements or reviews in the regulatory framework, having seen that the regulation in other sectors are considering seasonal aspects, too.

Do you expect anything similar to happen in your own sector in the next few months? Or if it's not related to inflation, are there any other components that might lead you to expect an improvement in the regulatory framework?

Well, excellent, Ignacio. Thank you for your question. As for yesterday's announcement about the investment cap, we have a very positive view, not only because of that cap. Yesterday, the present planning -- a change in the present planning was approved yesterday by the Council of Ministers to make the present plan more efficient and to make energy cheaper. So our first impression is very positive.

As for investment cap, well, it's just a reference, a limit to investment, much needed to continue the analysis and approval process for energy planning, which will be a guiding light for our investment framework in the next few years. You know that this cap was much needed. And in the CNMC report last month, assessing the planning proposal for approximately EUR 13 billion, it was clear that the previous cap was insufficient and the new announcement makes the new limit comfortable for the investments to ultimately get approved in the planning.

But it's relevant precisely because it was much needed to continue the planning analysis and approval process, which will earmark the investments in Red Eléctrica for the next few years. As for yesterday's approval of changes to the present planning, I perceive it as good news, particularly for the electricity generation system as it will bring extra elements into the system to provide higher resilience. So my take on both announcements is very positive.

As for the remuneration model, well, the truth is the model was approved in December. We have objected some aspects in the model, which we believe can be improved. We believe that the model is insufficient, particularly in the present environment and the one we're considering for the future. And we have given the CNMC our opinion and filed the corresponding appeals.

In other remuneration models for similar activity to ours, we have seen the introduction of a concept like an inflation adjustment, which we've required or asked for in our consultation process with the CNMC. We believe this would be a positive measure to accommodate the evolution of prices in the remuneration process. And we also requested from the CNMC an update of our remuneration model, an amendment we consider reasonable and which we requested last year in our dialogue with the CNMC. So there is still room for improvement in the model. So there are appeals and an explicit request for an update were filed to the CNMC.

Next question from Javier Suarez from Mediobanca.

I have a couple or actually several questions, as follow-up to the previous question. About the updating of the current plan until 2026, the government announced yesterday an increase of over EUR 600 million. But the question is, when do you think that, that additional investment could be made? Is it something that's going to happen within your business plan running up to 2029 or beyond that?

And the second question is about the National Energy Infrastructure plan, which has to be approved running 2 years behind and probably run only up to 2030. So the question I have is, once this new infrastructure plan is approved, will you be updating your business plan? And in that update, how much visibility would you have? That is I'm trying to understand whether this new infrastructure plan could give the company more visibility beyond 2029?

And the next question is in the context of the investments that are required, do you think that the infrastructure plan should extend significantly beyond 2030? Is there any possibility that the government might reconsider the duration of the infrastructure plan beyond 2030, maybe up to 2035? And my final question is, when will the company update its business plan? And how far will it extend visibility?

Perfect, Javier. Thank you. As for the investment connected with the proposal for the amendment of the current plan, it was approved yesterday. Of course, some preliminary work is required, engineering analysis and permitting management and to start the tendering process for equipment and so on. So in our '26-'29 plan, there will be some of that investment already executed. But of course, these kinds of investments have longer development times.

But because of the type of amendments and the previous ones, we have seen both with the synchronous compensators and also probably with this kind of investment, the Rev versus CapEx ratio is actually a bit more favorable because these are processes or facilities that require less permitting time. And so there, we expect to be able to accelerate the process a bit. But as for the EUR 615 million, the impact on the current business plan will be relatively limited because it will take us a while to see the real impact on our investments, but it will be towards the final years of the plan.

As for the planning and the updating of our strategic plan, we said it in February, and perhaps Carlos can give you a bit more color. The essential part of our strategic plan is connected to the planning. Obviously, once the planning is approved, we have to look at the scope and the content before thinking of potentially an update of our plan. In February, we gave a description of where we thought investment might evolve up to 2030, 2031.

But now that the planning has been approved with the evolution this year of the most strategic projects, which are moving forward pretty successfully, I think we will have more visibility and perhaps extend our visibility on the strategic plan to 2031. But we'll have to wait and see until the actual planning gets approved because that's the essential component we work on to construct our business plan or our strategy plan. Carlos, do you want to give any more color?

Yes. Our current strategic plan 2026-2029 included investments connected mostly to the current planning, the '22-'26 planning with all the various amendments that have taken place. And once they publish the new planning, we will have more visibility on investments for the years beyond 2029 with their respective commissioning dates, and we'll be able to do that update of the numbers that Roberto mentioned.

And then also, Javier, what you were saying about the planning time line. Obviously, that's the government and the ministry's decision. But perhaps most European countries in our environment, you're correct, do tend to have planning that run at least 10 years into the future. But we think in an electricity system, that's quite a reasonable time line to reflect the changes and modifications that could occur in future years. But in any case, it's up to the ministry. But it's true that a lot of European countries have that kind of a time line in their plans. And the recommendations from Europe tend towards longer-term plans than the one we work with in Spain.

Thank you. There are no other questions in Spanish. Let's now move to questions in English. [Operator Instructions] The first question comes from Arthur Sitbon with Morgan Stanley.

The first one is on -- it's actually a follow-up to a previous question on your discussions with the CNMC around your remuneration model. You mentioned that you filed an appeal. I was wondering, is there any other route for you than the formal appeal in order to obtain a change in remuneration model? Or would it necessarily have to go through that formal route, which I imagine could take multiple years. So is there any chance to have some sort of fast track to an improved remuneration model?

My second question is around the potential timing for a Capital Markets Day and for an update of your business plan to 2031. Is there a chance that could happen in the first half of 2027? Or would that most likely have to be later in 2027, given the time line for the update of the transmission CapEx plan in Spain? And the last question is just on the 2026 net income guidance. It seems that in H1, your net income is growing a bit faster than what that full year guidance anticipates. So I was wondering if you consider yourself being a little bit ahead of the growth pace that you guided for the year.

Well, thank you so much, Arthur, for your questions. If you don't mind, I'll answer the first 2, and then Emilio can answer the last one on revenue. As for the appeal, yes, we are following the formal channel, which is to appeal that letter, but that's circular. But as we have done with the change incorporating inflation-linked adjustment, we have requested an update, which is something you can do.

And some of those differences of opinion that we've expressed in the appeal can also be dealt with an update of the circular letter, which can happen within the year. So that's an approach we can follow. For now, we've placed a formal appeal, but we've also made a specific request for an inflation adjustment and circulars can be amended at any time.

As for the update of the business plan, as I said before, we need to wait until the final CapEx plan is approved. So we know the content, analyze that in detail once it's approved and -- once it's approved and we've analyzed it, we will have a lot more visibility and certainty about when we might be able to share with the market our longer-term vision, probably running up to 2031. Emilio, revenue?

Yes. As for revenue, net profit, this first semester, Arthur, you're correct that net income has increased 4% versus last year with EUR 280 million. But the guidance that we gave at the beginning of the year and which Roberto has confirmed, still applies. So net income would be above EUR 510 million. But I want to say, Arthur, that earnings in the first semester are probably not just something we can multiply by 2 to get the year-end figure, probably because our maintenance costs are usually seasonal and so higher in the second half of the year.

And secondly, because the excellent performance of our international business in the first semester, probably not going to be replicated in the second semester. There are some macro factors like the IPCA in Brazil, which have had a very positive impact and which we don't expect to continue in the second semester. Although nevertheless, our international business is going to be performing better than expected.

And our financial earnings, well -- in the second semester, we'll have more debt. We are planning to close the year at around EUR 6 billion and for slightly higher interest cost. Currently, our average interest rate is 2.35% in the first half, and we expect to close the year at 2.45%. So the combination of these 3 factors will mean that the earnings for the year will be good, slightly higher, I think we expect on that guidance, but it's not going to be just double the first half.

And the next question comes from Louis Boujard with ODDO.

Maybe a few questions on my side. First one regarding AI and CapEx expansion. You identified AI, data center and industrial electrification as a key structural driver for future grid investments. Could you provide some indication on the current pipeline of transmission connection requests coming from these sources of demand? And how does it compare with the one you had 1 year ago for the specific elements?

And maybe a second question regarding the publication of the European Expert Panel report. What operational measures have you already implemented to strengthen the system resilience and which additional investments are now specifically dedicated to improving the voltage control, the system flexibility and the operational resilience, please?

Well, thank you for your questions. About the use of AI. Well, clearly, the company is trying to make the best of all the advantages that the new technologies bring. And we are using it in the search for efficiencies to enhance the operational efficiency of the system, not only in performance, but also in maintenance to bring further intelligence to maintenance criteria and therefore, generate very specific maintenance plans rather than general plans, which will, in turn, generate extra efficiency in operational terms. So we are working along those lines and seeking operational efficiencies.

As for the European Expert Panel report, and thank you for that question because I do believe that the report you mentioned helped us improve our vision on the reasons of the April 28 blackout. I would say this paper is an independent European document sharing the same conclusions and analysis issued by our own experts. They agreed that this was a one-off multifactor incident. I believe there is no further doubt about that, and the Expert Panel report insists on that fact.

I would like to go back to the multifactor origin of the incident. 66 files were opened by the CNMC about that incident. And only one of those accountability files pertains to Red Eléctrica. As for the options for improvement suggested by the experts panel, well, there is something we detected early on, and we already applied changes to our planning since July last year. And based on the Expert Panel recommendation, many of these measures were rolled out and integrated into the teams that worked on yesterday's change in the planning. So we are working to give the system higher resilience. And we had an immediate reaction. I would like to insist on the fact that the Expert Panel reported an independent document, and they state that the incident was a multifactor one-off.

I'm now going to read the written questions. First from Bank of America, who's asking how we're going to finance that EUR 600 million increase in the investment that was approved yesterday, whether it will be with the current plan's scheme and whether we're planning to divest of any assets.

Great. Yes. Mark, I can give you a general overview and then maybe Emilio can give you more details. When we announced the strategic plan, we said that we had several financial levers in order to deal with increased investment in our strategic plan. First, remember that the EUR 615 million, as I said before, have to go through the permitting phase and there's the manufacturing phase by the suppliers. So it's not going to have a significant impact in the 2026-2029 period, although there will be somewhat of an increase in the investment that we will include in the update of that plan.

But there are several levers we can use such as increasing slightly our issuance capacity for hybrid bonds. We also have some European subsidies available to finance the strategic plan. There's also the possibility of some partial or full asset rotation. And there's a new aspect, which will also have a positive aspect and that is a positive impact. And that is that given the progress in our strategic projects and which I described earlier and given the faster commissioning of these last amendments of the planning, we might be able to increase that the CapEx ratio and probably get more cash flow from operations in the coming years.

So we have these levers. And first, the impact of these amendments is not going to be that huge in these first years and our finance structure is ready to cover these types of changes without any problems. So it doesn't really require a structural change in our strategic plan that we shared in February. Emilio, do you want to add anything?

No, I just totally agree with what Roberto said. If you remember, the strategic plan ended with our financial debt at around EUR 8 billion plus the hybrid issuance you already are aware of. The execution of this over the next years, as Roberto was saying, will require a slight investment effort, but nothing too significant in terms of debt given our current debt volume, which -- because we have a portfolio of -- a very broad portfolio of finance instruments, and so it won't be a problem to finance this increased investment.

And we have 2 more questions from Laura Marconi from Barclays. First, when do we expect the final planning to get approved, the CapEx planning? And second, I'll ask whether due to this delay in the plan and execution of the projects, will Spain meet the energy targets for 2030?

Well, Laura, thank you for those questions. The final CapEx plan, that's obviously a process that is done by the ministry. In the last couple of months, there has been significant progress for the final approval with a favorable report from the CNMC and the approval yesterday of the increased investment cap yesterday. And then there's the analysis of the strategic environmental study, which is the most relevant critical milestone that remains in the analysis process of the CapEx plan.

And that, of course, is up to the ministry, but we expect, given the progress that has been made that it could be approved, at least that's what we hope by the end of the year. And as for the targets for 2030, I can only talk for our part in the matter. And as you have seen in the last years, Red Eléctrica has taken a leap forward in its execution capabilities. We are investing at historic levels of over EUR 1 billion a year, and that's Red Eléctrica's contribution to the achievement of the targets of the national plan.

I think I should recognize the effort that the company has made to take this leap forward in our execution capabilities. And as we said before, we currently can face the challenges ahead with confidence in our ability to execute investments at a record level. And in fact, we are the biggest investor in the electric grid in Spain with these levels of over EUR 1 billion a year.

Well, that's the end of our earnings presentation today. As usual, the Investor Relations team will be available to answer any further questions. Thank you, everyone.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

[Presentation]

Good morning, ladies and gentlemen, shareholders. I would like to begin this ceremony by thanking you for your participation in this ordinary General Meeting of Redeia Corporation, which is being held on the second [indiscernible]. The general meeting will be held exclusively online pursuant to the provisions set forth for this purpose in the articles of incorporation.

This format ensures the effective participation of our shareholders whose rights may be exercised in full with complete quality of treatment and regardless of their location. Furthermore, holding this meeting exclusively online promotes a more efficient allocation of resources. It allows for a reasonable increase in the usual capacity and optimizes the effective use of the possibilities offered by technology.

Should assistance be required, any shareholder or the representative attending this general meeting via remote means may contact the shareholder services office during the meeting by calling 900-100-182 or via e-mail at [ [email protected] ] or [email protected].

Seated next to me are the Chief Executive Officer, Roberto García Merino; and the Secretary of the Board of Directors, Carlos Méndez-Trelles Garcia. I'm also joined by the other members of the Board of Directors who are seated next to me. I kindly greet them.

In order to draw up the minutes of this ordinary general meeting, we are once again joined by Mr. [ Eduardo Martin ] [indiscernible], notary from the Madrid Bar Association, who is also present in the room where the meeting's presiding board is located near this podium. To carry out his duties, the notary, whom you can see on the screen broadcast in this meeting has full access to such broadcast and to the remote attendance platform through which he will be aware of all the actions taken by those attending the meeting, including remarks, proposals and votes that may be made or cast. I now give the floor to the Secretary.

Thank you, Chair. Good morning, ladies and gentlemen, shareholders. As indicated in the official notice of the meeting, the Board of Directors of Redeia Corporation at a meeting held on April 8, 2026, resolved to convene this ordinary shareholders' meeting. We will hold this meeting exclusively online in accordance with the provisions set forth in the company's general shareholders' meeting regulations, its articles of incorporation and applicable law.

As customary without the need to register as an attendee, this meeting may be followed by any interested party via the corporate website, either live or in a recorded version once it has concluded. In any case, online attendees who have registered as such for the meeting may follow the proceedings via the online attendance platform, which has been made available for this purpose on the corporate website at www.redeia.com. We also provide simultaneous interpretation into English and Spanish language interpretation to facilitate participation and follow-up of the meeting.

Please be advised that in the event of failure of electronic communication systems and services, the meeting will be suspended for the time necessary to resolve the issue resuming immediately upon the restoration of set systems and services. In such a case, as soon as possible, the resumption of general meeting will be announced on the company's website.

We will now proceed to confirm the convening of this general meeting in accordance with the provisions of the law, the articles of the incorporation and the general meeting regulation. And afterwards, the Chief Executive Officer, Mr. Roberto García Merino and I will present the most relevant aspects of the company's strategy and management during the 2025 fiscal year, the results of which will be presented during the meeting.

Next, we will move on to the shareholders' discussion period and the response to any questions you may have asked. Afterwards, the key aspects of all the proposed resolutions submitted for approval by this general meeting will be read as well as the informational items on the agenda. And once the voting period for such proposals has concluded, we will finalize with the results of the vote.

Both the notice of the meeting and the corresponding proposed resolutions and reports prepared by the Board of Directors have been and continue to be made available to all of you on the company's website on an uninterrupted basis and through the shareholder services offices and at the company's registered office and their full text has been provided free of charge to all the shareholders who have such requested either at the registered office or through delivery or mailing.

Given their [ less ], these documents are deemed to have been read in their entirety to the extent necessary for the proper conduct of this meeting without prejudice to the summary of the proposal that will be provided later. I would like to inform you that as in previous years, we are conducting an external audit of the procedures for conducting this general meeting with the aim of reinforcing the reliability and transparency of its operation, including the process of counting votes and proxies for this meeting.

The preliminary results of such audit will be published today on the company's website once the meeting concludes. And the final results of the audit will also be made public once the final tests are completed following the meeting. To ensure the proper sets of shareholders right at the meeting, those who so wish may request a certification of their vote, which will be sent to them as soon as possible.

Without further ado, the Secretary will now take the floor to report on the convening of this general meeting. First, I would like to inform you that in accordance with the provision of the articles of incorporation and the rules of procedure for the general meeting, Ms. [indiscernible] Sierra, Chair of the Board of Directors, will serve as Chair of this meeting, and I will serve as Secretary in my capacity as Secretary of the Board of Directors.

The other members of the Board of Directors will also form part of the meeting's presiding committee. This ordinary General Meeting of Shareholders of Redeia Corporation has been convened by the Board of Directors through an announcement published on the website of the National Securities Market Commission and the company itself on April 9, 2026, and the newspapers [indiscernible] on April 1, 2026. It is hereby noted that no supplements to the call for this general meeting have been submitted by the shareholders nor have any proposals for resolutions or alternatives to those formulated by the Board of Directors be submitted.

Next, the Secretary will inform you of the list of attendees at this meeting. Ladies and gentlemen, shareholders, the list of attendees is as follows: present are 348 shareholders that represent over 1 million shares and represented are 2,713 shareholders, which represent 338 million shareholders in total, attending this meeting, including those present and those represented through the advanced voting in the remote proxy procedure as well as via remote participation in this meeting, 3,061 shareholders that represent 64.18% of the company's share capital.

After applying the legal restrictions set forth in the Electricity Sector Act, the Corporations Act and the company's Articles of Incorporation, the company's shareholders with voting rights totaled 519,372,654. It is hereby noted that the company's treasury stock has been included in the calculation of the percentages required for the constitution of the meeting, although it has been included from the calculation of the total number of voting shares in accordance with the applicable law.

Likewise, shares exceeding the legal limit on shareholders in the company have been taken into account for the purposes of convening the general meeting. Although such shares will not be taken into account for the purposes of calculating the voting percentages for the adoption of resolutions. The quorum required by the Capital Companies Act and the Articles of Association for holding the meeting on second call and for the discussion of all matters included in the agenda is therefore met.

For the record in the notarial minutes, I hereby inform that the shareholders that the list of attendees has been prepared and recorded on a digital meeting and that I will, in due course, fix the appropriate certification and the cover of that meeting with the Chairwoman's approval.

I now give to the notary so that he may provide the appropriate legal notices regarding the list of attendees. If any of the attending shareholders or the representatives have reservations or objections regarding the number of shareholders present or regarding the capital present or represented, please let me know so by sending a message through the corresponding section provided for this purpose on the remote attendance platform of the corporate website, and I will record this in the minutes of the meeting.

Based on the attendance data presented by the Secretary, the second Ordinary General Shareholders Meeting of RRa Corporation is hereby declared validly convened to address the items on the agenda. I would like to inform you that this year, in accordance with the rules approved for the remote participation in the meeting, should any shareholders or representatives participating remotely wish to speak and if applicable, request information or clarification regarding the items on the agenda submitted to this meeting or regarding the publicly available information that the company has provided to the National Securities Market Commission.

Since the last general meeting or regarding the auditor's report or if they wish to make any of the proposals submitted by law, they may do so through the remote participation platform through which they are connected as attendees either in writing or via audio or video and by following the procedure established for this purpose in the notice of the meeting on the corporate website and on the remote participation platform.

Specifically, in the case of written statements, this has been available for submission since the moment of registration as the remote attendee and may continue to be submitted until I myself indicate that the round of statements has concluded following my speech and that of the CEO and once attendees who so desire have been able to make their statements via audio or video.

All remote attendees will be able to access the written statements submitted by other attendees via the corresponding tab on the remote attendance platform. In the case of audio or video contributions, interested parties must request to speak via one of these through the remote attendance platform. Following the instructions be provided I kindly remind you that attendees participating audio or video must use the device with an audio system, of course, and where applicable, a video system that is a micro and where applicable, a web and enable the devices access to these features.

Audio or video contributions may be made until the round of contribution concludes and participants are called upon to do so. Any attendee who has spoken audio or video may only do so again in writing. Likewise, if you wish for your statement to be included verbacen in the minutes, you must expressly indicate this in the statement section of the aforementioned remote attendance platform available on the website or stated in your own statement, providing the full content of your statement or as the case may be by providing the notary with the written text of the statement prior to it so that the notary may verify its content. And to ensure the smooth running of the meeting, we kindly ask you to make brief remarks.

In addition, I would like to remind you that as stated in the notice convening this meeting, shareholders or their representatives attending remotely have been able to cast their votes on the proposals regarding items on the agenda through the voting form available on the remote attendance platform on the corporate website from the moment they logged in as remote attendees in accordance with the established operating procedures. The voting process on the proposed resolutions regarding the items on the agenda will conclude at the moment I myself indicate so later during this meeting once the Secretary has read the summaries of set proposals.

I would also like to inform you that pursuant to the provisions of the general meeting regulations regarding the proposed resolutions submitted by the Board of Directors and relating to matters included on the agenda of the meeting, the votes of all shares present and represented shall be considered votes in favor with the exception of votes corresponding to shares whose holders or representatives state that they are voting against casting a blank vote or abstaining by communicating or expressing their vote or abstention to the notary or on the remote attendance platform as well as votes corresponding to shares whose holders or representatives have left the meeting without expressly indicating the nature of their votes or abstention in advance and have expressly communicated such departures to the notary through the remote attendance platform, in which case they shall be deemed to have abstained.

In the event of leaving the meeting without having expressly indicated their vote or abstention or having expressly notified the notary of their departure from meeting in advance via the remote attendance platform, it shall be understood that they are voting in favor of the proposals of the Board of Directors under the items of agenda of the notice of meeting. The notary through the aforementioned remote attendance platform shall record such votes as abstentions.

Likewise, regarding the voting of the proposed resolution, I remind you that in accordance with the provisions of Article 526 of the Capital Companies Act, directors who have made a public request for proxy or in a situation equivalent to such a request are in a conflict of interest and have not received specific voting instructions have not exercised the vote corresponding to the shares they represent in relation to -- as applicable with the proposals made by the Board of Directors under Items 5, 7.1, 7.2 or were applicable under items 6.1, 6.2, 6.3 and 6.4.

And that in accordance with the instructions on the proxy cards received and unless otherwise indicated, it shall be incumbent upon first, to the Secretary of the General Meeting; second, to the Deputy Secretary of the Board of Directors; and lastly, to the Head of the company's Corporate Governance Department to cast the vote corresponding to the aforementioned shares in their capacity as a designated representative in the event of a conflict of interest regarding the items where such a conflict exists. Finally, I remind you that if you cast multiple votes on the remote attendance platform, only the last one will be taken into account.

Next, I will briefly share with you some reflections on the strategic aspects of Redeia's activities during the 2025 fiscal year. The CEO's subsequent remarks will address these matters in greater detail.

Ladies and gentlemen, shareholders, we are holding this year's 2026 Annual General Meeting of Shareholders against a turbulent and deeply troubling international backdrop. Over the past 12 months, [ polarization ] has continued to grow and so have military conflicts, particularly the war waged by the U.S. and Israel against Iran, which have plunged the global economy into state of great fragility, so much so that the [ IMF ] has warned of the risk of facing the greatest energy crisis of the modern era.

Spain is showing greater resilience to volatility in the energy sector, particularly in the electricity sector, thanks in large part to the consideration of our generation mix. Our country, as confirmed by prestigious European fintechs, such as [ Ember ] and [ Bruvo ], has largely decoupled electricity prices from fossil fuels, thanks to the high penetration of renewables.

Although prices rose sharply at the start of the conflict in Iran, they stabilized quickly and are now substantially lower than those in other European Union countries. In fact, during the first quarter of 2026, Spain, along with Portugal, recorded the lowest electricity price in the entire EU, around EUR 40 megawatt hour. In April as well, the Iberian market recorded the second lowest price on the continent.

Spain's greater resilience in the face of the crisis reinforces our role in a European energy system that must, without fail, move towards greater autonomy. And this also highlights the competitive advantage afforded by our lower dependence on fossil fuels, such as oil or gas, whose prices, as you know, have skyrocketed due to the crisis. This evidence further underscores the need to streamline and strengthen international interconnection to accelerate European energy sovereignty, which will be key in an international geopolitical landscape where the need to reduce independence on third countries is becoming increasingly urgent.

In short, it is essential to continue advancing the internal energy market and accelerate the green transition to address the international situation as well as the effect of climate change, which is increasingly undeniable as all the data show. The last 3 years have been the warmest on record globally according to [ Copernicoystem ]. In Spain, the annual average temperature in 2025 was 15 degrees. That's 1.1 degrees above the average. Fires burned more than 1 million hectares in the EU nearly half of them in the Iberian Peninsula according to a report by the European Forest Fire Information System.

In Spain, more than 350,000 hectares were burned in over 2,500 fires. In the first quarter of 2026, twice as many hectares have been bullet compared to the same period in 2025 according to the Ministry of Energy Transition. This compels us to keep a close eye on what will happen when the hottest months arrive to address the challenges arising from this situation as well as a consequences of the international political and economic context and the objectives of the European Energy and [ Climate Agenda ], progress in the field of European regulation has been significant and rapid over the 12 past months.

In September 2025, the European Commission announced the energy highways initiative to remove the 8 critical bottlenecks in the European Union's energy infrastructure, designating the interconnection between Spain and France as a top priority and committing to accelerate these projects immediately through enhanced political coordination. This initiative is key to advancing the new power links across the pies. And we hope that in the coming weeks, technical and financial work can begin to move forward with the development of these infrastructures, which are critical for the security of the EU's energy supply.

Last December, the commission also presented the networks package, which includes legislative proposals to accelerate the planning, authorization and implementation of networks, increase integration of renewables and strengthen interconnections between member states. Currently, the Council and the European Parliament are negotiating their amendments and a final tax is expected to be agreed upon by late fall.

Most -- more recently, last March, the commission presented a clean energy investment strategy to be implemented in collaboration with the European Investment Bank with a commitment to provide over EUR 75 billion in funding over the next 3 years through the fund in support of the goals to the transition of the clean energy. Moreover, the Council and European Parliament just approved in April the seventh list of projects of common interest, which includes up to 4 interconnection projects affecting Spain, with Northern Portugal and 3 with France.

Progress in European regulation largely lays the groundwork for a new phase in the energy transition in which Spain serves as a benchmark on the continent. For the third consecutive year, renewable generation exceeded 50% in 2025, reaching around 57% of the mix. In the first 4 months of 2026, the share of renewables in the Spanish energy mix exceeded 61%, including self-consumption data, which, as you know, [ Red Electrica ] has been publishing since last December.

The top technologies in the ranking are wind power, photovoltaic together with self-consumption, nuclear, hydroelectric and in the fifth place, combined cycle power. And for the fourth consecutive year, we ended 2025 with a net export surplus. Specifically, electricity exports increased by 25%. And we are the second country in the EU in terms of generation and installed capacity from solar and wind technologies just after Germany.

This is explained by the fact that the transmission grid in Spain now exceeds 46,000 kilometers carrying electricity produced by plants and power stations with an installed generation capacity of 150 gigawatts, including the more than 9 gigawatts of residential solar power already installed in our country. As a result, renewable sources account for 70% of the generation capacity.

Add to these figures, the access and connection permits granted for a capacity of 127 gigawatts for wind and photovoltaic facilities, 18 gigawatts for storage and 19 gigawatts for demand side facilities. On the latter, since 2022, the date the current plan was approved, permits for 11.1 gigawatts of capacity for new demand facilities have been granted and remain in effect, though these facilities have not yet been commissioned as they have 5 years from the date the permit was obtained to do so.

The volumes demand with permits pending connection only to the transmission grid would represent 25% increase in the country's current demand. A demand [indiscernible] instantaneous peak in 2025 was still well below the historical maximum recorded in 2007. In any case, the transmission grid still has capacity for new demand access requests at [ 38% ] of its notes.

This is the information that Red Electrica has been obtaining on its website since February 20 in compliance with the detailed specification of the [ CNMC ] dated December 1, 2025, incorporated into this extensive body of regulations, which comprises 30 text law decreased ministerial order, [indiscernible] and resolutions that defines in detail the procedure for granting grid access permits and which the system operated [indiscernible] applies as it is to be expected.

These figures, of course, do not align with the self-serving description of a physically collapsed or saturated transmission grid. But it is true that in recent years, there has been a flood of applications and many projects have secured grid access and are occupying capacity without their maturity level being known. To address this situation, 2 significant regulatory developments are underway.

On the one hand, the draft Royal Decree already submitted for public consultation by the Ministry of Energy Transition imposes robustness criteria and certain demand such as data centers and electrifiers connected by power electronics to ensure that they reduce available capacity at [indiscernible] nodes. On the other hand, Royal Decree Law 7 2026, which regulates a comprehensive response plan to the Middle East crisis and also includes a package of anti-hoarding measures and prioritization rules for the use of power grids.

Indeed, the past 12 months have been highly significant from a regulatory standpoint in our country as well, beginning with the measures to strengthen and modernize the electricity system derived from the zero energy incident of April 28, 2025. A year ago, ladies and gentlemen, I began my address to this shareholders' meeting by describing that moment as the most challenging Red Electrica had faced in its 40-year history. I predicted back then that the company would emerge from this major test of resilience by reaffirming its defining characteristic, its deep commitment to public service. And today, I stand by that.

Also, a year ago, I reported to this meeting on the main conclusion of the technical report that the system operator had submitted just 10 days earlier as required by law regarding the circumstances of the blackout. Time, ladies and gentlemen, has proven us right. And all the official reports published confirmed that as Red Electrica anticipated that this event was unprecedented, unforeseeable and multifactorial event.

Particularly relevant are the conclusions of the final report by the panel of 49 European experts commissioned by the European Commission, which was presented on March 20 and whose main findings confirm that Red Electrica did not fail. There was no breach of duty or conduct attributable to Red Electrica that led to the blackout on April 28, 2025. The report endorses point by point the OS analysis of June 18. This was based on the objectivity and independence required by the electricity sector law and supported by scientific evidence from the data and technical rigor, a report that Red Electrica has consistently defended since then.

The European study identifies as root causes 2 [ oscillations ], forced the disconnection of a significant number of small-scale PV installations, the improper disconnection of generation facilities and voltage control by generators below regulatory requirements. Therefore, Today, as the new year begins, we reaffirm -- I reaffirm our full confidence in the teams at Red Electrica in the performance of their duties before, during and after that blackout with strict regulatory compliance as their sole guide for action.

We have demonstrated this in the briefs we have already filed in response to the disciplinary proceedings initiated by the National Commission on Markets and Competition. In these submissions, we have highlighted the conflict of interest in which the regulator finds itself in this proceeding as well as the defects, both procedural and substantive that in the opinion of our legal team plagued the proceeding and would render the proceedings not and void among them, the incomprehensible vagueness of the alleged facts given the exhaustive investigative file process by the CNMC prior to the initiation of the disciplinary proceedings, and we provide compelling evidence of the system operators' full compliance with its regulatory obligations at all times.

These arguments and conclusive evidence should lead to the dismissal of the case. We view the new tasks and functions that the government and the regulator have been assigning to the system operator. This, both in the recommendations of official reports and in the regulatory and technical measures approved since then, as a sign of confidence in the operator's rigor and neutrality.

Most of these had already been anticipated by Red Electrica itself in its June report. Among the system improvements already approved and implemented or in the process of being implemented, I will highlight the new operating procedure 7.4 proposed by Red Electrica since 2020, which incorporates a compensation scheme for power plants providing dynamic voltage control services as well as a system of penalties for noncompliance.

Perhaps the best known measure of the new procedure is the inclusion of renewable generation in this service. Its implementation depends on plant owners applying for inclusion and passing the corresponding qualification tests. As of April 30, 14.5 gigawatts were already providing this voltage control service via set points, of which 6 GW are renewables.

At the end of April, the OS submitted for public consultation in compliance with Royal Decree 997 by 2025 and after sending it to the regulator and the ministry, the modification of a series of operating procedures. These provide the system and particularly Red Electrica with new tools in areas that provided mission-critical on April 28, such as voltage control, adverse oscillations, the disconnection of facilities whose malfunction poses a risk to the system, over voltages in transmission networks and the monitoring with potential penalties of active power variation ramps.

Thus, a new safety criterion is being incorporated to monitor the rate of voltage change aiming for greater control of this parameter. In compliance with the same decree, the system operator has submitted to the CNMC and the Ministry a proposed procedure for coordination between the transmission and distribution network development plans. The minimum monitoring requirements necessary for incident review and an analysis defining a procedure to establish how to submit the requested information to the system operator for the corresponding incident analysis. The same package includes a review of the regulation of balancing services and the scheduling of technical restrictions to incorporate new system situations and innovative solutions.

Regarding technical constraints, I would like to focus on the so-called enhanced operation with which the system operator has been strengthening voltage control since April 29, 2025, given the evidence that the incident occurred due to a series of cumulative and exceptional circumstances that far exceeded the safety criteria established by regulation. In other words, the so-called reinforced operation is not evidence that insufficient synchronous generation was scheduled as is intentionally implied.

It is evidence of multiple unpredictable phenomenon occurred. Oscillations, the most severe ever recorded in the history of the Spanish power system or grid, multiple disconnections of small field generation, which the systems operator has no visibility into and incorrect disconnections of large-scale plants, compounded by the fact that the schedule of synchronous generation failed to meet its voltage control obligations to a significant degree.

And the paradox is that the very same entities that failed to meet their regulatory obligations are now receiving revenue from this so-called reinforced operation. How much does this amount to? EUR 711 million as of April 30. That is 2% of the system cost for the period, which totaled nearly EUR 34 billion. The regulator, which like the ministry is informed promptly and periodically, has endorsed our calculations, which amount to EUR 0.04 per day for a typical [ PVC ] user.

I will not get into whether that is much or not. I understand that for some users, it may be a significant extra cost, but it is a safety cost. How long will it last? It is a fact that the electricity system is changing, and it is necessary to implement all the approved measures and ensure greater certainty that all stakeholders comply with the regulations.

Along with the system improvement measures stemming from the net zero energy initiative, I would like to mention some of the regulatory and legislative developments from recent months that will shape Redeia's work in the immediate future and which our CEO will discuss in greater detail afterwards.

To begin with the most recent, I will sign aforementioned Royal Decree Law 7 2026, which introduces 880 measures aimed at mitigating the effects of the current international context on energy prices, but also accelerating the energy transition. It therefore, incorporates very significant provisions for the electricity system in Spain. Also noteworthy in this review are the remuneration circulars approved by the CNMC for the new 2026, 2031 period, setting a financial remuneration rate of 6.58% for the next 6 years as well as the new remuneration for the systems operator for the 2026, 2028 period.

We believe that transmission grid assets must be adequately compensated at a time when the critical role played by both their reinforcement and maintenance is unquestionable. For this reason, we had hold for different regulatory signals more in line with those of TSOs in the region, given the investments that are currently underway in the electricity infrastructure and the continued investment as we will see, that will be required in the coming years because Red Electrica will continue to fulfill its functions as a TSO, system operator and transmission grid manager, a model that, as is well known, we established in Spain back in 1985 and which has since been replicated by all European Union countries and is the most effective in management, the safest in operations, the most efficient in terms of investment and the most economical for consumers' bills.

A model that now in the midst of transformation of electricity systems makes even more sense than ever because it ensures orderly grid development consistent with the country's economic and social needs. But as the electricity sector law itself stipulates, it requires fair compensation that allow us to compete with our counterparts, fulfill an essential social function and reasonably reward our shareholders relative to other system participants.

It is surprising that some of these operators are interested in developing the transmission network, which as they have publicly acknowledged, reserve only to maximize the profitability of their business when at the same time, they are considering, and we've heard this publicly, possible limitations on their investments in distribution networks in Spain due to failing to achieve, they say, the desired return.

Furthermore, the participation in the transmission grid of business groups with diversified activities such as generation, marketing and distribution would constitute a conflict of interest. They could not guarantee either the neutrality or the independence that characterize the TSO model. All of this brings me naturally to the draft electricity plan for the 2025, 2030 period, which will mobilize more than EUR 13 billion in investment in the transmission grid.

It is currently in the phase of analyzing the comments submitted during the public consultation launched by the government. Its main distinguishing feature is that for the first time, it focuses on demand, proposing infrastructure to meet the needs of the productive sector, industrial and technological alike, the electrification of transportation and for instance, a total of 27 gigawatt electrolyzers that is 14 -- 14x more than what is currently planned under the existing framework.

It also includes the specific projects needed to integrate renewable generation and strengthen the security and stability of supply as well as essential elements such as international interconnections and the connection between island and mainland systems. As I will explain later, this will be the main guide for our new investment plan, this plan.

But before delving into that chapter, a couple more notes on the new legislative and regulatory developments approved or announced in the recent period must be heard. Because the loyal decree law on urgent measures due to the crisis in Iran also streamlines and makes the planning process more flexible to better adapt to the needs of the moment in line with what Red Electrica has proposed. Also currently under review is the Royal Decree on maximum investment limits in transmission and distribution networks that may be reimbursed at the expense of the electricity system.

With this regulatory framework in place, we have completed Redeia's 2021-2025 strategic plan. And last February, we presented our road map for the next 4 years, our 2026 -2029 strategic plan. Regarding the former, we have exceeded the targets set through 2025, placing the company in a very solid position to tackle the challenges of the coming period.

The TSO's investments have reached EUR 4.4 billion, exceeding the initial target of EUR 3.9 billion. We closed out 2025 with over EUR 1.5 billion, a record figure in the company's 41-year history, representing a nearly fourfold increase in the investment pace in just 4 years. No other company has invested as much in Spain's electricity grids in recent years as the one I am honored to lead.

And at this point, I believe it is important to explain the evolution of our investments and the context in which they have taken place, starting with a fundamental presence, which is Red Electrica has always been and will always be at the service of the system. In times of cost containment, the company had to adapt to existing conditions and adjust investments at context, such as when Royal Decree Law 30 in 2012 effectively suspended the implementation of the current plan, limiting the construction of new infrastructure to what was necessary.

Now shaped by the context of the energy transition, Red Electrica has also successfully adapted by systematically increasing its investments so that in recent years, the pace of investment in the transmission grid has risen at an average rate of nearly [ 33 0% ]. Based on the latest available data from 2024, Red Electrica undertook investments in the transmission grid that accounted for 82% of its annual revenue, more than double the equivalent figure for each one of the distribution companies.

So our commitment is clear. To undertake and execute the investments outlined in our planning documents, overcoming any barriers that may hinder their implementation, particularly regarding processing times, all of this with an unequivocal goal to meet the needs of the country and grid users and effectively enable the energy transition, both in Spain and at the European level, even within a context that is more than demanding from a financial and regulatory standpoint.

Our CEO, Roberto García Merino, will delve into the details of the projects developed over the past 12 months to implement the current 2021-2026 plan. Both the version initially approved back in 2022 and subsequent specific amendments from 2024 and 2025. And as you will see, over the past year, we have strengthened the transmission grid in every single autonomous community, Madrid, Aragon, Extremadura, Catalonia, the Valencian community, Cantabria, Navarre, Andalusia, Murcia, The Basque Country, [indiscernible], La Mara and León.

And I could go on to list the entire territory where we have deployed new infrastructure to boost the productive sector, industrial and technological, advance the electrification of ports and rail corridors and promote the sustainable transformation of the energy model, in short, to enable economic activity and the generation of business and jobs. There is no industry, no major consumer sector nor any actor in general that cannot move forward simply because the transmission grid to connect 2 has not yet been installed.

I would like to highlight this year's progress on interconnections, specifically the construction of the link with France across the Bay of say and also the one connecting us to Portugal via Galicia. The process for the second interconnection between the Peninsula and the Balearic Island is also moving forward and the project for the new Majorca-Mnorca Link has already been presented. In addition, we completed work on the cable between Tenerife and La Gomera and on the Mainland [indiscernible] interconnection, ending the autonomous enclave cities and its citizens' long-standing electrical isolation.

The company's extensive institutional outreach has been crucial to advancing all these projects across the country. In 2025 and the first month of 2026, I visited 12 of the 17 autonomous communities apart from [ Septa ], to promote in close collaboration with the public administrations and civil society, the electrical infrastructure they need and demand from Aragon to Navarre, from Andalusia to Asturias, from Catalonia to the Best country from the Canary Islands to [ SPA ]. This effort is not limited to the company's senior management.

We have launched a cross-sector active listening program in which we are traveling across the country, bringing together at the same table, representatives from regional governments, parliaments, assemblies, provincial councils, city councils, NGOs, economic stakeholders, citizen platforms and universities with the goal to find solutions together to accelerate investments in the transmission grid. The first thoughts in this program have been Andalusia, [indiscernible] Catalonia, The Basque Country, [indiscernible], Castile and León, Murcia, Madrid and Asturias, where together, we have identified the barriers that hinder and impede the development of the transmission grid in each region, sharing possible solutions to accelerate the energy transition.

Nor do we limit this initiative to the national level because a significant portion of our actions are regulated by Brussels, Europe and because we also operate in Latin America, Peru, Chile, Brazil. And that is why we launched the Brussels 2025-2029 plan, which prioritizes promoting interconnections between the Iberian Peninsula and the rest of the EU's electricity system.

This European vision and the interconnections were also the focus of our participation in the EU LAC Business Forum held in November in Colombia, where I was able to share our leadership in achieving the energy transition on both sides of the ocean in Spain as well as in Peru, Chile and Brazil, where we have a presence. And add to this, the 100 institutional visits received at our control centers, many of them international in nature, 177 institutional collaboration agreements signed, more than half of them directly focused on local development and the [ 990 ] partnerships established, most of which are aligned with the objectives of the Paris Agreement.

And we will continue down this path because the new phase of the transition requires continued investment in infrastructure and the incorporation of technology, digitalization, innovation and new capabilities to take full advantage of all the opportunity that the transition itself brings to economic growth, industrial development and social progress. And that is the focus of the company's upcoming strategic plan, which represents the most ambitious investment cycle in our history, primarily to implement the next electricity plan.

But before we get to numbers, allow me to outline its conceptual framework. It stems from Redeia's recent data to drive the energy model and connectivity of the future. This is our mission, which is complemented by how we carry it out by generating a positive impact on climate change, nature, the region and people. That is why sustainability is the guiding framework for all strategic decisions.

And that is why we are presenting simultaneously and with the same time frame, 2026, 2029, both the strategic plan and the sustainability plan, which I will discuss in more detail. The strategic plan is structured around 5 pillars. First, TSO growth, building and operating a safe and reliable electricity system and facilitating the energy transition.

The future growth strategy of Redeia focuses on strengthening Spain's electricity transmission infrastructure which is key to the energy and industrial transformation the country is undertaking. For this reason, 94% of the planned investment will be allocated to Red Electrica, the TSO.

Second pillar, we will leverage diversification through strategic alliances, both at Rider, our transmission subsidiary in LatAm, to strengthen and expand transmission networks in Brazil, Chile and Peru and at Raintel, our dark fiber brand, which will continue to serve traditional customers while also expanding its network capacity to meet the growing demand for high-quality connectivity.

The third pillar concerns technological innovation and digitization spearheaded by our technology platform, Elit. It will focus on developing scalable solutions that improve the efficiency of our operations, designing tools that strengthen supply security and innovative solutions that allow us to anticipate technological changes. We will promote the use of artificial intelligence and cybersecurity will, of course, also be a special focus of attention.

Ethics are paramount. A part as challenging as the one we are presenting also requires a strong commitment to financial sustainability and value creation, which are critical elements in a context of significant investments. Equally critical and constituting the fifth pillar is the attraction and development of talent, improving the overall well-being of our workforce and promoting emotional management as part of mental health. We will reform our programs to attract and retain talent with a commitment to advancing workforce diversity as a key priority. These 5 pillars are implemented through 21 strategic initiatives and in turn, 86 key actions.

Turning to the numbers now. The plan increases Red Electrica's average annual investment by 770% compared to its previous plan. This, combined with the improvements planned in the permitting process will ensure that all new planning with a projected investment in the proposals submitted for public consultation exceeding [ 1 3 ] -- EUR 13 billion is in service or underway by 2031 with EUR 11.1 billion worth of projects commissioned, 85% of the plan and EUR 2 billion under construction. Roberto will shortly provide the economic and financial details of the plan, which ensures a sustainable and responsible dividend policy translating to annual growth of 2% over the period.

As I mentioned, this strategic plan goes hand-in-hand with our renewed commitment to sustainability. The investments I just mentioned will enable us to continue advancing the electrification of the economy and the productive sector, but they will also bring about significant changes in the lives of people. That is why we take our social responsibility so seriously and approach it strategically, holistically with a long-term perspective, paying meticulous attention to every detail regarding the environmental, social, territorial, technological and economic dimensions of everything we do.

At Redeia, we understand that sustainability means leading things better than we found them when we arrived. That is, at its core, the essence of being sustainable, being able to endure over time, to continue providing an essential service and to make economic growth compatible with caring for nature, the territory and social well-being.

This year, we have completed our 2023-2025 sustainability plan, which involved the implementation of more than [ 490,190 ] actions and which we have concluded with a final compliance rate exceeding 100%. The new plan, a key component of the strategic plan focuses on the need to play an active role in defining and implementing the future energy model while promoting a positive impact on nature, local communities and people, which will be its 2 main goals.

It includes a series of levers, management, governance, strategy, finance, technology, organization, relationships and culture that will ensure sustainability is integrated across all aspects of the company's decision-making and operations. It includes 33 key objectives that allow us to measure progress in the company's highest priority areas, ensure consistency with the strategic plan and reinforce Redeia's role as a key player in the energy and digital transition.

This plan is designed to consolidate and reinforce decades of work in the field of sustainability, which has led us to be included in the most internationally recognized indices such as the Dow Jones Best-in-class, [ Euronext Vigeo I F4 ] [indiscernible], among others, which recognized the group as one of the most sustainable Spanish companies in the world. Redeia also ranks in the top 1% of the world's most sustainable companies according to Standard & Poor's. We are one of only 2 companies in Spain to have achieved this distinction and one of the [ 77 0 ] worldwide.

Electric grids are a major driver of transformation in the world around us. We are transforming the places where we live, and we must do so in a fair, inclusive and environmentally respectful manner. We cannot envision the expansion of the grid without taking society into account its needs, its natural capital and its economic, cultural and heritage context. We cannot ask them to base their solidarity on a general call to combat climate change, promote energy efficiency or integrate renewables.

We must offer them an improvement in their well-being. We cannot expect the region to be a recipient of infrastructure. The economic returns we obtain from this deployment must always be accompanied by social returns for which collaboration, dialogue and listening are essential. We do this within the framework of a comprehensive impact strategy, which involves all of the company's business areas to ensure that we deploy our infrastructure in line with this commitment to sustainability and to promote and drive environmental and social initiatives in an integrated and coordinated manner.

This strategy has led to the launch of more than 260 [ 2-6-0 ] initiatives since late 2022, with nearly 100 of which were implemented in 2025 with an investment of EUR 6.7 million in the region, which according to our calculations, generate impacts exceeding EUR 83 million in positive returns for the region.

This would be possible if we didn't consider our land of action and an outward looking into that, it is relevant to look then to look at corporate governance. I would like to stress that the company has once again obtained the highest rating, G+ in the [indiscernible] Good Corporate Governance Index certification, a rating first achieved in 2024. And regarding the Board of Directors, allow me first and foremost, to highlight its important strategic role in a geopolitical moment such as the one we're living currently.

Having a group of professionals with the experience, expertise and specialization of those who make up our Board is essential for looking ahead and identifying risks and opportunities in the immediate and long-term future. Among the milestone in the past 12 months, I would like to highlight the Board's self-assessment process. This is new and has been developed with the support of an international external consultant and allows us to continue advancing our governance model led by the Board itself.

Also, the Board updated its competency matrix, a process we completed last February to address the new strategic plan and Redeia's current and future challenges. Likewise, we developed a corporate governance system manual for the company, which represents another step forward in an innovative practice in these areas as it identifies elements that enable the promotion of oversight, updating and continuous improvement of our governance system, thereby reinforcing the trust that you, our shareholders and other stakeholders have in our company.

And I would also like to highlight 2 practices that we have continued to consolidate since 2025 and that are now part of our DNA. On the one hand, the development of an annual program of activities and training for the Board and on the other, the annual plan under the protocol for the Board of Directors' engagement with Redeia's teams, which remains a pioneering practice in Spain and facilitates closer ties and interaction between Board members and the workforce.

And as for the composition of the Board of Directors, this year, I would like to express my most sincere personal gratitude to the 3 directors present at this event who are leaving the Board today. First, to the 2 independent directors, Mr. [ Antonio Gomesira], also the Coordinating Independent Director, [indiscernible] [ Suco Fernandez Maria], [indiscernible]. Having reached the maximum legal term of 12 years as Independent Director of the company, you're leaving the Board.

And I don't want you to do so without highlighting your commitment, rigor and your ethical principles that you've shown throughout these years. 12 years is a lot of years. You've seen the company grow and change, and you've been fundamental. We've learned from you. You've held this company in a high level. And I would like to thank you at a personal level for your way of supporting and her solidarity and your support. It's been a pleasure to have you throughout this year.

I wish to acknowledge the work of the shareholder representing SEPI, my ds there. And I also thank for her vital role in consulting and continuing to promote sustainability from the Board of Directors, how you've analyzed data. We've learned so much from you. Thank you. I wish you all the best on your new endeavors. We will always miss you, and this is your home.

And I would also like to stress that this Board proposes the appointment of 2 independent directors, [ Marta de la Cuesta Gonzales and Santiago Ortarogas ]. You will be able to meet them, and you probably met them through the documents that were proposed to this meeting today. And the appointment of 2 representative directors. The first, the legal entity, [ CEPI ] itself, represented by [ Mercedes Real Rodcbaz ], who we know very well, which has served as Representative Director of Redeia since 2017; and the second, [ Jose Luis Navarro Ribera ], also as a Representative Director of CEPI.

We welcome all 3 of them together with Santiago and Marta. I'm fully confident that given the extensive experience of top level professional expertise of all of them, if the Board approves the proposal today, their contribution to the Board will be of great value in driving forward Redeia's new strategic plan above its period.

Another issue I would like to highlight in this area is our code of ethics. In 2027, we will mark the 40th anniversary of our ethical commitment, which laid the foundation for our corporate culture guided by integrity, responsibility and service to the public interest. One of the key milestones of 2025 was the review and update of Redeia's code of ethics and conduct, which incorporates as its main new features, principles regarding the ethical use of technology and responsible public communication.

Both of these are fundamental in a highly digitized environment driven by AI. Closely related to integrity and to ethical principles and culture, I would like to highlight a function that, while not always visible, is essential to the strength, sustainability and good governance of our company, the internal audit function. A function that Redeia has held international certification of compliance with the global standards for the professional practice of internal auditing for 20 years.

This recognition attests to its fundamental role in identifying and mitigating risks in the transformation and continuous improvement of the organization and in the adoption of best practices in corporate governance. At the start of this fiscal year, the Audit Committee approved the audit function strategy in line with our 2026 -2029 plan, defining 4 strategic pillars: assurance and advisory, positioning, talent and innovation.

They lay the foundation upon which to build value excellence and trust within this organization. And in an environment such as the current one characterized by growing regulatory complexity, digital transformation, emerging risks and the demand for transparency for markets and society, internal audit protects the company's value and acts as a trusted partner for the governing bodies, management and RDU's shareholders.

Similarly, the strategic importance of this unit has increased significantly, elevating it to corporate management, along with the functions of compliance and risk control, a key element for anticipating and addressing the challenges posed by an increasingly complex and dynamic environment. Redeia has also strengthened its forward-looking analysis capabilities to address the challenge of managing emerging risks, anticipating threats that are still uncertain and bolstering its corporate facilience.

There can be no good governance without people and talent management based on empathy, diversity and the well-being of Redeia's teams who are the ones who make the transformation of our energy system possible. As explained earlier, people are one of our pillars of our strategic plan. And with this, we reinforce one of the hallmarks of our identity that we reaffirm year after year. In 2025, we remain at the forefront in the area of diversity and equal opportunity by maintaining gender parity on the Board of Directors. We are 1 of only 5 companies in the stock market carried by women. Women make up 45.5% of Executive Committee and 28% of our workforce is female.

So we need to make further efforts here. And for the third consecutive year, we have increased the number of women in management position reaching 39%. We will continue to develop our comprehensive diversity plan, which stems from the commitment of management and the highest level of the organization, which aims to impact our company workforce. In this plan, shared responsibility is a cross-cutting factor in everything we do. And all this work has led us to receive significant recognition. As a result of our commitment to diversity, equity and inclusion, we were named a top diversity company in 2025.

I've mentioned perspective, future, long-term vision, anticipate the future, identifying trends even before they become established. Observing and analyzing the environment in a forward-looking manner allows us to shape our future context and stay ahead of emerging issues that may affect us in the long term, anticipate risks, identify opportunities and therefore, strengthen organizational resilience.

That is why I do not want to conclude without mentioning our trends and futures initiative, which is especially important for a company like ours. This team has been particularly focused by advances in artificial intelligence and a more complex dynamic geopolitical environment with impacts on the energy sector supply chains and markets. That is why we have also focused our analysis on these areas, but in others such as biotechnology, translating signals and trends into concrete implications for the business, prioritizing lines of work, aligning internal capabilities before changes take hold.

And as I said earlier, also anticipating emerging risks. And I'll wrap up now. The current geopolitical landscape has made it clear to everyone that energy is an essential pillar of our economy. The recent events in the Strait of Hormuz, combined with the situation we experienced in Ukraine, have made it evident that moving forward toward energy sovereignty is an absolute priority.

And to this end, the development of European networks and interconnection is even more urgent. Being a leading country in renewables has contributed to lower price volatility and gives [indiscernible] a competitive advantage over other countries. Not only do we have the responsibility to capitalize on this, but also we need to have the opportunity to consolidate the country's leadership in this revolution of the industrial and production model that are taking place in Europe and that will intensify in the coming years.

At Redeia, we are effectively addressing the needs of this transition, thanks largely to our historic levels of investment already made, which will be increased with the new strategic plan, always guided by sustainability as a framework for our decision, strengthening our work in partnership with the local communities, allowing us to serve as a unifying pillar and contribute to fostering social cohesion. This is achieved through universal access to electricity and connectivity, but also this is possible, thanks to the divisional initiatives that we carry out in the areas where we operate.

To this end, we have designed a comprehensive sustainability plan that will allow us to consolidate the progress made in recent years, which has positioned us as national and international leaders. But this would not be possible without the professionalism, talent and perseverance and commitment of a workforce that gives its all every day to contribute each from their own area of expertise and discipline to ensuring that Spain leads the transition towards a new energy system fully prepared for the future.

This teams with the same professionalism and the same commitment to public service did not fail on April 28, 2025. On that day, as on every day since its founding in 1985, Red Electrica fulfilled its duty in strict compliance with current regulations. The system operator takes on the new tasks and functions entrusted to it with responsibility and commitment and it is moving forward with their implementation to strengthen the system.

But we are much more than that. That is why we are -- it is essential that all stakeholders fulfill their duties. It is an indispensable prerequisite for a safer electric system. Thank you very much.

Next, the floor is given to CEO, Mr. Roberto García Merino, to continue presenting to the Board the highlights of Redeia management in 2025.

Dear shareholders, it is an honor to address all of you once again at this Annual General Meeting to review our company's performance and share the most relevant aspects of our management during the past fiscal year. Allow me to begin by highlighting the most significant milestones of 2025 before delving into the evolution of the results achieved. And finally, share with you the main aspects of our new 2026 -2029 strategic plan.

2025 was a complex year, perhaps the most intense in the company's more than 41-year history. Geopolitical instability, repercussions on financial markets and supply chains intense regulatory activity, both at the national and European level and the need to accelerate the energy transition to provide the country with greater energy autonomy and meet the growing demand for the electrification of the economy have required an unprecedented effort from the entire Redeia structure and above all, from the Red Electrica España team.

But without a doubt, the incident of April 28 has been the defining event for the company's operations in recent months, an unprecedented unforeseeable multifactorial episode as the Chair noted, reflecting the unanimous conclusion of all official reports, which indicate that Red Electrica did not fail.

Our teams acted before, during and after the incident with the utmost professionalism, responsibility, transparency and institutional coordination in accordance with the highest technical and regulatory standards, prioritizing the safety of the power system in strict compliance with current regulations. Clear evidence of this is the new mandates and functions entrusted to the system operator, which we are currently implementing, thereby endowing an increasingly complex system with new capabilities and strengths. As you already know, the CNMC has initiated a disciplinary proceeding against Red Electrica, one of the 64 cases opened to date regarding the incident. And as the regulator has explicitly acknowledged, this does not imply the attribution of the original cost of the blackout nor does it imply that the system operator has been proven to have committed any violation.

Red Electrica has submitted the corresponding defense and will take whatever actions are necessary in its defense. In this regard, as we have indicated throughout the past year, our confidence in the Red Electrica team is absolute given their impeccable performance during after the incident.

Turning to other operational areas. The most notable development has been the historic investment record achieved in our activity of TSO, exceeding EUR 1.5 billion for the year, representing a 40% increase compared to 2024. This figure marks a milestone in the company's history and represents nearly a fourfold increase in investment pace in over 4 years.

Furthermore, it is also clear that fiscal year 2025 has been a pivotal year from a regulatory standpoint, notably marked by the CNMC's publication of the remuneration circular for electricity transmission activities corresponding to the new regulatory period 2026-2031, which I will discuss in greater detail later.

Furthermore, as announced on January 31, 2025, Redeia's Board of Directors approved the sale of its 89.68% stake in the share capital of Hespacade S.A. After the conditions precedent set forth in that agreement were met, the transaction was finalized on December 30 for an amount of EUR 725 million, which has strengthened the group's financial capacity to address the new investment cycle that we must manage in coming years.

Having outlined the most significant events of the year, I will now analyze the management of our operations as the operator and transmission system operator of the Spanish electricity system. 2025, as I mentioned earlier, marked a turning point in the company's investment cycle with an unprecedented investment in TSO operations. This investment effort includes EUR 1.424 billion dedicated to strengthening transmission grid, resulting in the commissioning of an additional 486 kilometers of power lines and 217 new substations as well as an increase in transformer capacity of 2,460 MPAs with the aim of improving the resilience and transmission capacity of Spain's high-voltage grid.

Among the actions carried out, we can highlight initiatives in all autonomous communities with no infrastructure brought online or which progress on the most significant projects outlined in the plan. I cannot mention them all, but allow me to highlight the most significant ones. First, those focused on boosting the productive sector or industrial decarbonization, such as the Eskatrones Portal line in Zaragosa and the Calera and Chosa substations in Toledo, Saguntum in Valencia, Terralla in Navar or San Fernando and Nevo Meco in Madrid, among others.

Second, facilities focused on expanding railway corridors, such as the Condada substation in Woba and the Binaduc substation in Almaria. And finally, projects focused on integrating renewables or strengthening the supply such as P400 in Suraslorzano in Cantabria, the southern corridor of Ibisa as electricity reinforcement of the city of Morcia and expansion of Monti Arenas in Leon.

Likewise, we have carried out significant actions in the deployment of international interconnections grids between island systems, which are essential for ensuring security of supply. Among them, the following standout: the completion of the mainland soda interconnection, which improved the quality of the power supply in soda by integrating it with the mainland grid, the completion of the Tenaris Lagomer interconnection system designed to integrate the electrical systems of both islands to optimize their efficiency, strengthen supply security and facilitate greater integration of renewables.

Also, the completion of the Spanish section of the Galicia Portugal interconnection with the commissioning of the [indiscernible] and Fontefria Portuguese border lines, thereby completing the reinforcement of the electrical connection with Portugal. Also, progress on the electricity interconnection between Spain and France across the BK, which will allow to double the capacity for energy exchange with Europe, although this is still far from the 15% recommended by the EU for 2030.

Regarding this project, it is worth noting that in the coming months, we will begin laying the first submarine cable on both the French and Spanish sites. As for energy storage in the Canary Islands, construction works on the South [indiscernible] pump storage plant in Grand Canary is proceeding at a good pace, and this structure is essential for the operation of the system and for advancing the decarbonization of the Canary Island energy model.

In 2025, construction work on the hydraulic conduit and excavation of the horizontal galleries and the central can vault were completed and excavation of the vertical shaft have begun. Progress has also been made on the lining of the vault and on the marine construction work associated with this project. In this context, the support of the European Investment Bank is proving crucial, underpinning the financing of this strategic project as well as the undersea interconnection with France.

The investment effort in infrastructure construction has been complemented by optimal facility management achieving in 2025 98.38% availability rate for the national transmission grid, up from 98.06% recorded in the previous fiscal year. This highlights the company's rigorous implementation of sustainable, efficient and safe maintenance policies.

Internationally, we have once again achieved excellent service quality levels in transmission networks of Peru, Chile and Brazil with availability rates exceeding 99.8%. The optimal management of these infrastructures contributes to efficient energy use and the sustainable development of the countries where we operate.

In the telecommunications business, following the sale of Heposat, the focus is on Reintel, which continues to perform well by consolidating long-term commercial relationships with the leading telecommunications operators in Spain. Currently, Reintel manages a fiber optic network of nearly 55,000 kilometers deployed over the power and rail networks.

Finally, I'd like to mention our drive for innovation led by ELEVIT, which continues to establish itself within the innovation ecosystem. In 2025, 62 innovation projects were management and 16 technological solutions were adopted with innovations spending exceeding EUR 8 million. Additionally, investment processes and start-ups totaling EUR 2.5 million were launched, bringing the total investment in innovation and technical development to nearly EUR 11 million for the year.

As I mentioned earlier, 2025 was also a pivotal year from the regulatory standpoint. Therefore, allow me to take a few minutes to review the main regulatory development. First, the publication of the CNMC circular determining the methodology for calculating the financial remuneration rate, which establishes the remuneration rate applicable to electricity transmission, system operation and distribution activities for the 2026-2031 regulatory period. This calculation sets a financial remuneration of 6.58% compared to 5.58% in the previous year period.

Additionally, the publication of the CNMC's circular approving the remuneration methodology for electricity transmission activities as well as the standard facilities and the reference unit values for investment and operation and maintenance applicable during the 2026-2031 regulatory period. Also worth mentioning the CNMC resolution establishing the provisional remuneration amount for the electricity system operation for 2026 and provisionally setting the remuneration parameters for 2026-2028. During the year, the Royal Decree regulating the granting of subsidies from the recovery transformation and resilience plans funds for investments in the transmission grid aimed at strategic decarbonization projects was also approved. The approval of a list of actions to increase the resilience of the transmission grid, which are incorporated as a specific amendment to the 2021-2026 electric power transmission grid development plan.

I'd like to remind you that this is the second of its kind following the one approved in April 2024. The second amendment involves an investment of EUR 750 million, bringing the total investment under the 2026 planning horizon to over EUR 8.2 billion. The public here an information process for the draftorial decree amending the investment limit for transmission and distribution networks.

In the case of transmission, it meant an additional EUR 720 million per year from 2026 to 2030. It's also very relevant to mention the publication of the 2025-2030 electricity planning proposal, which calls for investments exceeding EUR 13 billion through the end of the decade. Added to all this is the extensive regulatory framework approved or announced by the Ministry for Ecological Transition and the National Commission for Markets and Competition following the incident on April 28, granting new functions to the system operator.

Furthermore, the regulatory process driven by European institutions is essential for advancing the energy transition. In this [indiscernible] initiatives such as the networks package aimed at promoting investment in electricity infrastructure, streamlining the permitting process and enhancing coordination in network planning at the European level, along with the energy highways project, which seeks to strengthen international interconnections to increase energy autonomy and security of supply, become strategic elements for ensuring infrastructure development and sustaining the necessary pace of investment required by the transformation of the energy model.

As you can see, these are all regulatory development of great significance for Redeia, and they set the framework for the new regulatory period during which the company's ambitious investment and growth cycles for the company will unfold.

Turning now to financial results. 2025 slightly exceeded our expectations for the year, showing positive performance across the main business lines with 89% of the group's EBITDA coming from regulated business. Group revenue grew by 4.2%, driven primarily by EUR 71 million increase in regulated business in Spain. This increase is largely due to the application of the new financial remuneration rate approved by the CNMC and the new services that were launched, offset by the amortization of the RAB under the remuneration model and lower unit maintenance costs. The international business showed a slight decline affected by fewer third-party projects in Chile and the euro-dollar exchange rate effect, partially offset by the strong performance and activity, mainly in Peru and Brazil.

In the fiber optic business, the positive effect of inflation on CPI-linked contracts is offset by the renegotiation of some contracts in a context of market concentration. Regarding operating expenses, excluding those offset by other operating income, including the TRA hydroelectric plant, operating expenses increased by 5.6% in an environment of heightened activity and operational demand, in line with business growth and network requirements.

Personnel expenses increased due to a larger average workforce, essential to address the challenges arising from the strong growth of the group's regulated assets. Other operating expenses increased primarily due to greater maintenance efforts in Spain, which contributed to a high availability rate for the transmission network. In this context, EBITDA increased by 4%, driven mainly by the TSO's greater contribution.

Also noteworthy are the improvements of the International segment and the strong performance of the fiber optic business, which combines higher revenues with more contained costs. The financial result worsened by EUR 20 million due to lower financial income compared to 2024 was primarily due to the reduced placement of cash surpluses during 2025. Net income, meanwhile, reached EUR 506 million, which is 37.2% higher than the previous year, which was affected by the accounting impact of the sale of Hispasat in fiscal year 2024. Excluding this effect, income from continuing operations grew by 1.6%.

Now regarding the financial outlook, the group's net debt stood at EUR 5.474 billion at the end of 2025, representing an increase of EUR 104 million compared to December 2024. Cash generation, together with the proceeds from the sale of Hispasat amounting to EUR 725 million and dividends from group companies, particularly from Brazil, have made it possible to contain debt growth and maintain a solid financial structure with a net debt-to-EBITDA ratio of 4.4% and an FFO to net debt ratio of 18.9%. At the same time, we have achieved 81% sustainable financial following the issuance of a new EUR 500 million green bond in 2025.

Furthermore, and with the same goal of driving the green transition in Spain, Redeia recently in 2026, issued its first European green hybrid bond with demand 6x higher than supply, demonstrating the markets and investors' confidence in the company.

In short, with the 2025 results and the achievements of the 2021-2024 period, we can say that we have exceeded all the objectives set out in our strategic plan for 2021 to 2025, placing the company in a very solid position to tackle the challenges of the new strategic plan. TSO investments for the 2021-2025 period reached EUR 4.4 billion, exceeding the initial target of EUR 3.3 billion, culminating in a record investment of over EUR 1.5 billion in the TSO in 2025 and ending with an EBITDA margin that stood at a solid 75.8%. Likewise, we have ensured stable shareholder returns throughout the period, even exceeding the initial dividend payout target.

In summary, we are concluding the strategic plan announced in 2021 and the 2025 fiscal year with an excellent level of execution and a very solid position to tackle the next phase, which will be marked by our new strategic plan with the horizon of 2029. Its primary objective is to promote a sustainable energy model and the connectivity of the future, generating a positive impact on climate change, nature, the territory and people.

This new strategic commitment represents a decisive step forward, consolidating our leadership and ensuring a secure, resilient and decarbonized electricity system reinforcing the essential role that energy transmission plays in the energy transition as well as offering a reliable and technologically advanced fiber optic network that contributes to providing universal connectivity, eliminating the digital divide.

In this regard, the plan focuses on significant growth in regulated activities in Spain, where more than 90% of our investments are allocated to transmission and system operation to prioritize the development of future electricity planning, optimize system operation and ensure the quality of supply in a rapidly changing environment. At the same time, Redeia will continue to consolidate its international and telecommunications activities, which provide stability and long-term value to the group. The new strategy also focuses on operational efficiency, technological innovation and digitization, which are key elements for operating a more demanding and decarbonized system.

Similarly, attracting and retaining talent becomes an essential pillar if we are to successfully address the challenges of the electricity sector. Overall, this plan reinforces Redeia's mission to promote a sustainable, reliable and future-ready electricity system, delivering shared value to society. The plan's main objective will be the implementation of the upcoming electricity plan currently still in the drafting phase for which we will reach historical levels of investment in the TSO with an average annual investment of EUR 1.5 billion, a figure 70% higher than the average annual investment under the previous 2021-2025 strategic plan.

This will ensure that by 2031, the entire plan with an initially projected investment of BRL 13.1 billion will already be in service or in the implementation phase with an estimated BRL 11.1 billion in projects coming online during the 2025-2031 period in an environment of improvements to the regulatory framework for permitting processes. [ Vera ] commits to an investment of BRL 6 billion in the TSO during the 2026-'29 period, which added to the investment executed in '25 and planned for the 2030 and 2031 fiscal years will enable the planned commissioning targets to be met. taking into account the regulatory improvements currently underway. The regulated asset base in Spain is therefore expected to experience very significant growth during the period covered by this plan, reaching EUR 12 billion in 2029, representing growth of over 35% and reaching EUR 14.4 billion if we take into account the more than EUR 2 billion in work in progress that will be commissioned in subsequent years.

It is clear that we face the challenge of developing the infrastructure needed to achieve the energy transition in a highly competitive and saturated market environment. It is therefore essential to ensure the availability of the supplies and services necessary to carry out the TSO's operations at a reasonable cost. And in this regard, it should be noted that more than 70% of our strategic supplies are guaranteed through 2029.

However, all this investment effort would be meaningless without stable and adequate regulation. As I mentioned earlier, the new methodology proposes an ROI of 6.58% for the next 6 years. In addition, unit values have been updated both for CapEx, showing an average increase of 6.4% and for operations and maintenance, in this case, with a 13.4% adjustment in maintenance revenue compared to the previous period.

Likewise, first step has been taken toward recognizing work in progress for unique facilities with amounts invested prior to the year of commissioning now being recognized. While the focus of our activity for the coming years will be on the transmission business in Spain, during the 2026-2029 period, we will maintain an investment plan of around EUR 150 million internationally, focused on strengthening and expanding transmission networks in Brazil, Chile and Peru.

We will also continue to invest in our dark fiber business, a market in which we are a leading operator, thanks to a stable, predictable model with a long-term focus. During the 2026-2029 period, we will invest approximately EUR 110 million, primarily aimed at strengthening our network, expanding capacity and meeting the growing demand for high-quality connectivity. Another significant aspect is technological innovation and digitization, which are essential for driving the group's efficiency, particularly in the TSO.

Between 2026 and 2029, we will allocate EUR 40 million to projects and development of solutions managed by ELEVIT, which support the investment plan and prepare our networks for the energy transition. If we focus on the evolution of the key financial metrics looking ahead to 2029, these directly reflect a company prepared to tackle an unprecedented investment cycle capable of maintaining sustained growth with a greater focus on management and financial discipline.

Thus, we estimate EBITDA growth during the period at a rate exceeding 5% annually and net income growth of around 3%. The growth in net financial debt is directly linked to the investment rollout outlined in the plan. Even so, we maintain a robust financial profile with ratios that will allow us to preserve a solid credit rating and continue to access financing on competitive terms.

In terms of shareholder returns, we have estimated a dividend policy that provides for annual growth of 2% until reaching EUR 0.87 per share in 2029, ensuring sustainable growth. The regulated business will continue to be the cornerstone of our results. More than 90% of the group's EBITDA comes from regulated activities, which provides us with stability, predictability and a solid foundation for our future growth. The TSO share of this will increase in the coming years, driving the growth in EBITDA and reflecting our ability to execute strategic investments, maintain operational efficiency and advance the energy transition of the electricity system.

In conclusion, I would like to summarize the key messages that define our 2026-2029 strategic plan and the growth path we have designed for the coming years. During this 2025-2029 period, Redeia is embarking on the most ambitious investment cycle in its history, demonstrating our firm commitment to the energy transition. A large portion of these investments is aimed at expanding and modernizing the transmission grid to meet the growing needs of the electricity system, the massive integration of renew, the electrification of the economy and the structural improvement of our infrastructure's resilience. This will result in a significant increase in our regulated asset base during the period, reaching EUR 12 billion by the end of 2029, a 35% increase compared to the 2025 baseline, which rises to EUR 14.4 billion when considering the estimated work in progress at the end of the plan.

This investment effort is accompanied by a solid and responsible financial policy, noting that this plan will be financed using internal funding sources without the need for a capital increase, thereby preserving stability for our shareholders and reinforcing the financial discipline that characterizes us.

In addition, we maintain a policy of growing and sustainable dividends with a 2% annual growth over the period, reflecting an appropriate balance between investment, financial strength and attractive returns for shareholders. And finally, I would like to emphasize once again that the growth of our regulated asset base will be the cornerstone of the group's value creation, reflected in an increase in EBITDA and profit over the period.

Furthermore, looking beyond the period covered by the strategic plan, we will consolidate the growth initiated through these investments during this period as RAB will exceed EUR 15 billion by the end of fiscal year 2031. And we will also have projects under construction totaling around EUR 2 billion that will be commissioned in the future. We are on a solid growth trajectory, one that ensures long-term visibility and represents a significant leap forward for Redeia in terms of its asset base with greater revenue-generating capacity and a structural contribution to the development of the Spanish electricity system. A system operated to the highest standards of quality and excellence by the Red Electrica team, always committed to system safety and regulatory compliance.

And finally, ladies and gentlemen, shareholders, I would like to take this opportunity to thank all of you for your support of this company's management during a particularly challenging year in which we have laid the groundwork for an exciting future that inspires us to redouble our efforts to live up to your trust. Thank you very much.

Thank you very much, Roberto. Thank you very much, CEO. We will now open the floor to shareholders or their representatives who have requested to speak via audio or video. I would like to remind you in addition that attendees may also submit their comments in writing and that the rest of attendees will be able to access these comments through the remote attendance platform. Regarding remarks made via audio or video and to ensure the smooth running of the meeting, I ask that you be brief and concise and stick to the matters that are the subject of this meeting.

You will speak in the order in which you have so requested to do, and I will call on you. I remind you that in accordance with the provisions of Articles 182 and 182 of the Capital Companies Act, any information or clarifications requested during the proceedings will be provided during the meeting or subsequently in writing within 7 days of the date of this meeting.

I also inform you that although this general meeting is being broadcast live and open on the Internet and is being recorded, individual images of speakers will not be displayed when they speak via video, except in the broadcast on the remote attendance platform, which is exclusively available to those attending the meeting remotely.

So first, I give the floor to shareholder, [indiscernible]

[Interpreted]

You have the floor, sir. Hello. Good afternoon. Well, let me first make a comment, ladies and gentlemen of the Board. This is the second year running in which this meeting is held only via remote. Last year, I called you cows. But this year, I'm not going to delve into this. I just have a question. Are you that scared of shareholders' control? Are you that concerned? Are you the only IBEX company that holds meetings exclusively via remote? You must be hiding something.

Now as to the reports regarding the 28th April event, which is, of course, the issue that has most marked the activities of Red Electrica in 2025. Well, you have held on to that panel of experts reports for dear life in which purportedly you are exonerated from all and every possible responsibility. And I have to ask again, was it that terrible for you in other Florida? Was it that terrible in the Senate? Was it that terrible in Parliament? What are you doing now? You're attacking the CNMC. They've been your main ally ever since April 28. You're looking for and analyzing all possible responsibilities and accountabilities of other electric authorities in the country. So you're alone. I don't know whether I don't know whether compounding this the is good for the company. I don't think so. I do not think it's at all good for Red Electrica for you to insist once and again, once and again that no, no, you are not accountable. You are not responsible. You are responsible. You are accountable. You are responsible.

Maybe it's shared. It's shared responsibility, but it is at your feet because you are the operator. You provide electricity.

I think that you might say no, no. I know that you are activating the fan, but -- but really, the facts are what they are. I'm going to read an article now. Well, not an article. I'm going to read a summary of an article that was published by El Mundo in October 2025. The electric system again suffers anomalies in September despite Red Electrica's best efforts. In other words, you, despite your strength in systems, you continue to suffer oscillations in the system. And not many weeks ago, we were about to have another outage, about to have another outage. The system was so unstable, so unstable that the system was about to plummet. It did not happen, fortunately, because that would be the end of it all in less than 1 year, have 2 blackouts of this nature. I would just like to add something else. This attitude, I think, is proof of the pudding that you see things [indiscernible] not [indiscernible] In other words, you are doing your best, but you're not aware of the fact that the system is not stable, you must be. You must be aware of that. The policy, the high penetration of renewables, which does impact the working of the system. So ladies and gentlemen, ma'am, I beg of you. I beg of you, please do not falseway to do what you did last year because I'm going to say you might be right in one of your statements. It is true. The system will only run if everyone complies with their commitments. You are essential. Of course, you are. Nobody has any doubt about this. Of course, all operators, all distributors, all companies, I agree, must do their bid.

Everybody must contribute so that the grid be as stable as possible, so that the grid be as cohesive as possible for transmission purposes. But Redeia, Redeia must take a step to the front. You must guide by example. You are the main operator. And thus, it is not to be understood that you, Mrs. Corridor, continue to be at the helm of Redeia when clearly and all reports, CNMC, the Parliamentary Commission, they all, I think, point the way. Red Electrica on that day did not do as it was to have done. It did not comply. It was not an appropriate response. It was not an adequate reaction. I would say perhaps that maybe you would have wanted to provide a solution to that situation.

Yes. But I beg of you, please accept the fact that you have made a mistake and that mistake resulted in a national blackout. This had never happened, never in the 40 years of life of this company, never. Now trying to have other people take the blame is understandable because you have to respond. You have to respond to your shareholders. You have to defend, of course, that the company did its best. But one thing is defending the company and another very different thing is insulting the intelligence with the Spanish people saying that you did your best. You did not do your best. You were not perfect on the job.

Begin by acknowledging that. And from that point on, we will be able to advance and understand where in the responsibility lies. That was a terrible day, the day of the blackout. Thank you.

I don't think that there are any more audio-video responses or reactions. So the Secretary now is going to summarize the written statements submitted by the shareholders or their representatives.

Yes. Yes. So this is the end then. We have received all this information via remote audio, video written. We have no more requests.

Thank you, ma'am. We have 2 shareholder, Roberto Gonzalez, who requests that his comments be read out during this meeting and which are to be included in the minutes. I am going to read this document. Dear Chair, dear all, I know Red Electrica España. I've known them for 25 years, a solid company, excellent workers, and let me focus. On April 28, 2025, there was something unexpected that happened, a blackout, a blackout? Well, a blackout. The information forthcoming was very little, and we've known more and more. We understand what the initial perception was, large amount of solar PV energy and very specifically an exceptionally low percentage of synchronous, nuclear, hydro and combined gas cycle.

It was a sunny day, not very many resources to control transmission. This resulted in excessively high tension, and there were complications in generators that disconnected from the system and then the system fell. The entire peninsula was barest of power. And unfortunately, we have witnessed confusion. We have seen persons trying to explain that Red Electrica had nothing to do with the outage. It was everybody else's fault. Now this makes no sense because who is accountable for the grid? Who is the operator of the system? Well, it is Red Electrica España. And therefore, yes, there was a blackout and the accountable party is Red Electrica Españe.

As a matter of fact, once things picked up again, Red Electrica began to reinforce with the aim of ensuring that this never happened again. Now this bolstered approach introduces higher percentages of synchronous generation. The icing on the cake was a publication in the media, a video 1 year after April 28. So embarrassing. Mrs. Corridor, please dismiss everyone and then retire. Go home. The company should return to normalcy, a normalcy, which is based on technical and economic realities. Thank you much.

And now the second address, shareholder, Rafael [indiscernible] . Two questions. First question, we have heard the days before the blackout, the technical team had advised of the possibility of a blackout. These words of warning were not taken into account. Was there no communication? Second question, [indiscernible] corridor says that she applies by legislation, but why do what obsolete legislation says when we didn't have as much solar as we have now?

Thank you, ma'am. This is it.

[Interpreted]

Well, we have heard the questions or addresses via the platform, and we have finished these addresses, audiovideo of shareholders and representatives. And before we actually provide answers, I would like to say thank you to those of you who have participated. And thank you, I repeat, for the interest, the interest in those issues that have to do with our company.

Let us share with you some seconds of corporate images, and then we will be able to respond to the comments and questions made. Now an institutional video.

[Presentation]

[Interpreted]

I will begin with the questions that have been posed in writing, and then we will take the audio/video comments. Now with regards Mr. Shareholder, Roberto [indiscernible] and this has to do with the 28th April event. We have always been rigorous in technical terms. We have always looked at the data that have been included in different official reports that have been presented as of April 28. So the causes of what happened that day have been clarified very clearly as rigorously, as technically as possible in view of the content of those reports.

Now the most important of those reports is the European panel of Experts, which was publicized on March 20, which before have been advised of in a factual report and which fully, fully coincides with the description of the facts that chronologically took place in our grid on April 28 after 12:03. It is true that the panel of experts has taken into account numerous information, numerous data and the conclusions reached in the report are solid. It was an event that was unexpected, absolutely unforeseeable, multifactorial based on the deployment, the description of the facts, which said report includes and which are detailed exhaustively minutely and are available. Now as to the statement that because we are the TSO, we must guarantee transmission, well, yes, but with the tools available as per the law. It's not just the TSO system. The electric grid is made up and involves many, many stakeholders and many of them and all of us -- all of us and all of them are subject to strict legal guidelines, legal, of course, and technical within the technical rules and regulations, all of the information specifies what we are all mandated to comply with.

Now saying that the only party accountable for any event, the only party responsible within the Spanish system is the TSOs, I think, is foregoing, if you will, that the system is made up by many, many stakeholders whose onboarding actually makes operations much more complex. And thus, we continue to uphold what these official reports uphold in turn. There was no noncompliance with any rule, with any regulation that might be placed at the feet of the operator. Therefore, the operator did not comply and therefore, no cause may be placed, as I said before, at our feet. The causes that specifically have not been included as potential causes, potential originating or triggering elements is the programming. The experts panel specifically and expressly excludes programming as root cause and reaffirms that everything was done in accordance with legislation in place. And if all of the stakeholders that at that time had to comply with technical obligations had so done, the incident of April 28, 2025, would not have happened.

The reinforced programming was implemented precisely in view of the certainty that such obligations were being fulfilled in its entirety and according to the law applicable at the time.

Since then, a number of regulations and technical measures have been implemented as well as others that have been requested in order to secure the supply, not just in Spain, but also in Europe. And in fact, a panel of experts expressed that in -- before an incident such as this, it was necessary to review the regulation and the operating procedures in Europe. And until uncertainty persists and until all the necessary measures have been fully implemented for the control of the system. The operator will maintain the operation as long as necessary to maintain the supply.

The shareholder, Mr. Roberto Gonzalezazmasa has requested in his intervention for the chair to present her resignation to all her public positions and to resign from this decision. According to what he says, he does not request for a vote on the cessation of the chair. And therefore, this will not be cast a vote. As for the request for the Chair to resign to or her position, we must say that there are no political positions in Redeia and that every member of the Board and the workforce have worked in accordance with the applicable law. Mr. Rafael Minas also submitted a statement. And in response to his comments, I would like to respond that there was no prior incident to the blackout on April 28 that would provide some hint on what happened. This has been evidenced by all the official and technical reports that have been submitted through the last year, and it is in particular worth mentioning the one published on March 20 by the European panel of Experts. We make reference to this report because it was trusted by 49 European technicians from many institutions, regulators, from the association of regulators, from different TSOs, from a number of institutions that signed this report and concluded the causes and the timetable and the combination of circumstances that led to this blackout.

And these reports were taken into the consideration along with some data that were analyzed and given the circumstances of the days prior of the electric system, we can say that we know that the system operates in fractions of seconds so that it changes in very short periods of time. And nothing in the system in the minutes or days prior to the blackout provide any relevant information that could help us or hint what would happen on April 28. And as I said, was the result of a number of factors that were caused by oscillations, malfunctions in plants, a disconnection from the dispersed PV system, undue connections to the grid when the pensions were in line and noncompliance by agents who were obliged to do so under the applicable law at the time.

Evidently, we cannot understand that some media claim in a biased way, a series of conversations between the control centers from the various operators. These conversations took place in a collaboration environment, in a trusted environment. They share information and share impressions on the functioning operation of the system. And so we cannot say or argue that private conversations could provide the data that is necessary for the analysis of this incident. Therefore, and for the ease of mind of all shareholders and of Mr. Rafael, the electric system is not undergoing any type of alteration and there was no previous warning. And as for the second part of this intervention, evidently, the system has changed significantly in the last few years, and this is why the operator is submitting continued improvement so that we can better operate in a more complex environment. This is part of our road map. I mentioned that earlier, and this is what we're doing also from a regulatory point of view. We have reinforced the function of the system operator and a new set of competencies have been allocated so as to ensure that all security and safety requirements are met. I think that with this, we can conclude the written questions.

And regarding the audio and video statement by Mr. [indiscernible], I will not go into his personal opinions. But I must admit that this meeting has taken place virtually, as I mentioned at the beginning, but we are not the only listed company that does so. This meeting has been held taking into consideration all the legal requirements. It has been duly convened with the necessary quorum, and this is foreseen by law. We also allow for the participation of all shareholders, and we uphold all their rights. I will not repeat myself because I have already mentioned what happened on April 28. The facts are clear. What happened is all included in audited reports, rigorous reports that are data based that have been collected from the Spanish and European institutions.

They are backed by science and the opinions that have been mentioned throughout the years. These are all hypothesis or assumptions that have been debunked by science. And -- this was a multifactorial event. It was unpredictable and the technical report did not express any noncompliance by the system operator in any of its duty, and that is why we are -- we feel supported to maintain our opinion before this shareholders' meeting and the public in general. The incidents that take place in the electrical system are various. All [indiscernible] take place in 20 millisecond periods and our obligation is to propose the necessary measures to have a control of the system in a much more efficient way. And this would be the case if all the stakeholders could certify that they've fulfilled their obligations as we have done. We have shown that in the technical reports, which in turn have mentioned that we did not reach in reaching our obligations. This is not the case for other stakeholders, and that is why I would like to ratify that Red Electrica did not fail. Its teams did not fail and that the teams fulfilled their obligations strictly.

Regarding my leadership in this company, it's been backed by the corresponding bodies and by this Board barely a year ago, and that is why I feel like I have all the necessary backing to maintain my position as the leader of this company. I think that with this, we finalized all the questions and statements made by the shareholders. And now I will give the floor to the Secretary because we need to read the proposal for agreement. And of course, we will now read all the items regarding the agenda. The Chair has already indicated the full text of the proposed resolutions to be submitted for approval and informational items in the agenda of this meeting is contained in the documentation made available to the shareholders. Therefore, they are deemed to have been read, and I will now summarize essential aspects of each one. First item on the agenda, proposal to approve the individual financial statements and the management report of Redeia Corporation S.A. for the fiscal year 2025 as prepared by the Board of Directors at its meeting on February 24, 2026, and which have been duly audited by Ernst & Young.

Second item, proposal to approve the consolidated financial statements and the consolidated management report of the Redeia Corporacó Group and its subsidiaries for the fiscal year 2025 prepared by the Board of Directors at its meeting on February 2024, 2026, and which have also been duly audited by Ernst & Young. Item 3, proposal to approve the appropriation of Redeia Corporacion S.A. net income as proposed by the Board of Directors at its meeting on February 24, 2026, and consequently, the distribution of net income for the 2025 fiscal year and voluntary reserves for the payment of the supplementary dividend of EUR 0.60 per share to shareholders. The dividend payment date will be July 1. The record date is June 30, and the ex-dividend date is June 29.

Item 4, proposal to approve the nonfinancial information statement and sustainability report of the consolidated group of Redeia Corporacion S.A. for the 2025 fiscal year. I hereby inform you that the nonfinancial information and sustainability report contained in the management report of the aforementioned consolidated group has been verified by Ernst & Young. Item 5, proposal to approve the performance of the Board of Directors of Redeia Corporation S.A. during 2025. Item 6, proposal regarding the appointment of directors. This item is broken into 4 separate sections for separate voting.

In the first section, the proposal by the Board of Directors to appoint the State Industrial Holdings Company, CEPI, as Proprietary Director of RDA Corporacion representing the shareholders CEPI for the 4-year term established in the articles of incorporation. It is hereby noted that CEPI has decided to appoint Ms. Mercedes Real Rodralvarz as its individual representative. In the second section, the proposal by the Appointment and Remuneration Committee to appoint Mr. Santiago [indiscernible], Independent Director of Redeia Corporacion for the 4-year terms set forth in the articles of incorporation.

The third section, the proposal of the Appointment and Remuneration Committee to appoint Ms. Marta Maria de la Cuesta Gonzalez, an Independent Director of Redeia Corporó for the 4-year term established in the articles of incorporation. In the fourth and final section, the proposal of the Board of Directors to appoint Mr. Jose Luis Navarro R as Proprietary Director of Redeia Corporacia, representing the company Sat de Participes Industries for the 4-year term established in the articles of incorporation. Item 7, proposals regarding the remuneration of the company's Board of Directors. This item is divided into 2 separate sections to be voted on separately.

The first section, the 2025 annual report and Director compensation of Redeia Corporation S.A. approved by the Board of Directors at its meeting on February 24, 2026, following a favorable report from the Nominating and Compensation Committee. Second section, the proposal for the remuneration of the Board of Directors for the 2026 fiscal year is submitted for approval by the meeting following a favorable report from the Appointments and Remuneration Committee, which maintains the remuneration of directors in their capacity as such for the year 2026 at the same items and amounts as in 2025 and the previous years.

Item 8, proposal to reelect Ernst & Young as the auditor of the financial statements of Red Corporation and its consolidated group for the 2027 fiscal year. Item 9, proposal to delegate the full implementation of the resolutions adopted at the General Shareholders' Meeting. It is proposed to delegate to the Board of Directors, its Chair and the other members of the Board of Directors as well as to the Secretary and Deputy Secretary thereof with build the scope necessary or appropriate under law for the formalization and authorization of the aforementioned resolutions until their registration in the applicable registries.

[Interpreted]

Thank you, Carlos. Once the presentation of the proposed resolutions submitted for approval at the general meeting has concluded, the Secretary shall briefly report on informative items on the meeting's agenda. Item 10, information on the annual corporate governance report of Redeia Corporacion for the 2025 fiscal year. This report was approved by the Board of Directors at its meeting on February 24, 2026, and communicated to the National Securities Market Commission and other relevant information on February 26, 2026. This report, which has been prepared in free form for you, together with the information regarding the statistical annex required by Circular 3 bar 2021 of September 28 from the National Securities Market Commission contains an initial executive summary that includes the most relevant information on the company's ownership structure, the General Shareholders' Meeting, the Board of Directors and its committees and is structured into 10 different sections.

Next, as the Chair -- at the Chair's direction in compliance with the of good governance for listed company inform you that as set forth in the annual corporate governance report, the company has complied in 2025 with all the applicable recommendation of the aforementioned code with the following exceptions. Recommendation # 1 has not been complied with, which suggests that the articles of incorporation of listed companies should not limit the maximum number of votes that a single shareholder may cast.

However, the report itself explains that all the shareholder limitations set forth in Article 5 and 14 and it is sole additional provision of the articles of incorporation are a reproduction of the legal regime established by the electricity sector law applicable to the company. Recommendation #48 has not been complied with. It suggests that large cap companies have separate nomination and compensation committees. And this is because the Board of Directors has not deem such a separation appropriate given the Board's small size compared to other large cap companies and also because it is considered that a single committee is achieving the same results and fully fulfilling all the functions of the law and the coach recommendations attribute separately to one committee and the other. And with the exception, likewise, of recommendation 62, which has been complied with partially since although the recommendation of the Executive Director retain ownership of the shares received as part of his or her annual variable compensation for the 3 years is met.

However, with regard to his or her multiyear variable compensation, given the plan's long duration, which ended on December 31, 2025, no additional commitment was established for the Executive Director to retain ownership of the shares after the plan's conclusion. I would also like to inform you that the annual corporate governance report is available in Spanish and English on the company's website in the section containing the general meeting documentation made available to all of you. Item 11 on the agenda, information to the general meeting on Redeia's 2026-2029 sustainability plan. The company's Board of Directors at a meeting held on February 24, 2026, approved the sustainability plan for 2026, 2029. This plan consists of 2 major ambitions, 7 strategic vectors and 5 levers with the aim of contributing to the creation of the energy model of the future and generating a positive impact on people. the socioeconomic development of the regions and nature. The summary of Redeia's 2026 -2029 sustainability plan is available in Spanish and English on the company's website in the section containing the general meeting documentation made available to all of you.

Well, now that the Secretary has read aloud the key points of the proposed resolutions on the agenda submitted for approval at this general meeting, I hereby inform you that the appears for shareholders present and represented to exercise their right to vote via the online attendance platform regarding those agenda items set forth in the notice of meeting has now ended.

Next, we will report on the results of the votes on the proposals submitted to this general meeting. Now the Secretary will address the voting on the proposed resolutions that the Board of Directors is submitting to the meeting. I would like to inform you that each proposed resolution has been put to a separate vote by all of you in accordance with the items and sections of the meeting's agenda to which I referred earlier. Since the majority of shareholders present or represented have raised no objections, all proposed resolutions are deemed to have been read in full. In light of the information provided to me by the Secretary regarding the votes cast by the shareholders, I hereby inform you that all proposals formulated by the Board of Directors submitted to this meeting separately for approval has been approved by the applicable legal majority required in each case for the corresponding proposals. I would like to inform you that today, we will publish the company's corporate website the percentages and the number of votes in favor, against, abstentions as well as blank votes cast in the voting on each of the proposed resolution that has just been approved by this ordinary General Shareholders' Meeting. The notary will now proceed to authenticate the minutes of this general meeting, which will be made available in the coming days to all the shareholders who wish to request them. And prior to adjourn this meeting, which has been certified as a sustainable event pursuant to ISO 2012, allow me to make -- to share a thought with you.

The fiscal year we have reviewed today has been marked by a challenging environment and by events that it has once again tested the resilience of the power system, in particular, the incident of April 28, which has had an enormous impact on the countries and on millions of citizens, whom we have kept in mind at all times. That days and always Red Electrica fulfilled its duty before, during and after the blackout as attested to in all official reports. All of the company's teams acted with professionalism, responsibility, transparency and institutional coordination, applying regulations and prioritizing system safety at all times. We facilitated a rapid restoration of power. And through a rigorous analysis of the data, we contributed to clarify the causes and to defining the necessary measures to prevent this from happening again.

Today, far from our model being called into question, new functions are being entrusted to the system operator, and we are now equipped with more tools to strengthen the security of the electric system. This is the best demonstration of trust in the technical soundness of this company and the accumulated experience and in the strength provided by the TSO model to operate an increasingly complex system and to ensure the coherent and orderly development of the transmission grid that the country needs for its progress and growth.

With this support, we will continue to move forward with determination through the most ambitious investment plan in the company's history to execute our strategy and support the electrification of the economy. We will strengthen the resilience of our infrastructure and listen to local communities to ensure that this transformation is fair and inclusive. We will do so as always, by preserving environment, biodiversity, acting with neutrality, independence, efficiency and safety and always using sustainability as the guiding framework for each and every strategic decision.

All of this will be possible, thanks to a team that demonstrates its commitment, effort and dedication to public service every day and with the guidance of a fully engaged Board of Directors, which applies best practices in corporate governance and the values of our code of ethics, respect, integrity and sustainability. I would also like to thank the technical staff that has made this meeting possible.

And to all of you, ladies and gentlemen, shareholders, I thank you for your trust and support. And with this commitment. The Ordinary General Meeting of Redeia Corporion S.A. for the 2025 fiscal year is hereby adjourned. Thank you, and good day, everyone.

Good morning, ladies and gentlemen. We're starting our earnings call for 2025 and the new strategy plan for the period 2026 -2029. We welcome to all attendance via telephone and our web page. With us are Beatriz Corredor, Chair of the Board of Directors; Roberto Garcia Merino, Chief Executive Officer; and Emilio Cerezo, Chief Financial Officer. I now give the floor to our Chairwoman, Beatriz Corredor.

Thank you very much, and good morning, everyone. First, I will start by highlighting the most notable events of 2025, and then our CEO, Roberto, will go deeper into the year's figures and discuss the close of the financial year. I will later refer to the environment in which the Board of Redeia brings this strategy plan. And once more, Roberto will go into deeper detail on it. And as usual, we will conclude with a question-and-answer period to address any of your queries or concerns.

So. as I said, let's get started with the 2025 highlights. From an operational viewpoint, we can say we've made great progress with a record of investments in TSO, exceeding EUR 1.5 billion or 40% more than in 2024, a record figure in our 41-year history. And it's almost a fourfold increase in the investment rate in nearly 4 years. This effort includes the EUR 1.4 billion invested in the transmission network with 486 extra kilometers of circuit and 217 new positions to strengthen the network and facilitate the country's industrial and productive development. Moreover, the availability index of the national transmission network operated by Red Electrica sits at 98.39%, exceeding 98.06% achieved during 2024. It is therefore clear that 2025 was a key year also from the regulatory point of view as the CNMC published the remuneration letters for the new regulatory period going from 2026 to 2031.

Also, the regulator approved the remuneration for the system operator for the '26, '28 period. This -- or with this, this financial year 2026 is expected to be better than the previous year as the current methodology takes the actual costs for 2024 and foresees a regularization based on actual data from 2025, which already has an impact on the 2026 bottom line. As for the transmission network, we believe it should be adequately remunerated during a time when the relevant role played by its reinforcement and its maintenance account for. Certainly, we were expecting further signals considering the effort being made in our infrastructure and we'll have to continue, as you will see during the presentation.

In the field of income and revenues in parallel, we've made progress on high-impact corporate milestones, including the completion of the Hispasat sale with a payment of EUR 725 million for 89.68% stake that we had in the satellite company. As we have said before, this strengthens our financial position to continue enabling the energy transition in Spain. The European Investment Bank has become a key partner in this regard as they support us in funding strategic projects like the pumping station in Santa de Chira and the interconnection with France. In addition, we signed an extra EUR 1.1 billion in loans with several entities, including a EUR 300 million contract with the ICO and issued a EUR 0.5 billion green bond. But if there is a relevant event in 2025, we're talking about the big blackout on April 24, an unprecedented, unpredictable multi-factoral incident as acknowledged by all official reports, both from the European experts panel and from the Government Analysis Committee.

These technical analyses confirm the sequence of events as described in the systems operators' report. All reports agree that it was a serious unforeseen event, oscillations, generation disconnections in some cases through shared evacuation structures with healthy voltages within the limits of the transmission grid and inadequate voltage control service. All this led the incident to an unprecedented, as I said, incident, both at a national and international level. This comes from the technical rigorous analysis of data. There is no guesswork here and no generalization. For this reason, Red Electrica confirms that it operated the system correctly in strict compliance with the regulations before, during and the blackout on April 28 because if there is a highly regulated industry in our country, that is the electricity sector, meaning that both the system operator and other parties involved must comply with the present regulation, which is obviously not approved by Red Electrica, but by the executive, legislative or regulatory authorities after due procedure, guaranteeing that all parties concerned are heard.

And this is the case for the new control operating procedure, 7.4 on voltage control, which was requested in 2020 by Red Electrica and approved in June '25 now in the process of implementation or the measures proposed by the systems operator for a sudden voltage variations control or the new functions recently assigned to the operator, which we take on with huge responsibility as a sign of recognition to the work and professionalism of our team.

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

And this has grown 4.2%, launched mainly by the increase of EUR 71 million of this regulated in Spain. This is due to the new financial contribution that was approved by the CNMC and the new types of help that has been given have been adjusted by the lower maintenance units that we need to spend. And internationally speaking, we have gone down a little bit because of businesses in Chile and because of the exchange rate between the dollar and the euro that was compensated in other countries like Peru and Brazil. So, the fiber optic business and the positive effect of the inflation of CPI-linked contracts is offset by the renegotiation of some contracts in our context of market concentration. With regards to operating expenses and without considering those that are offset by other operating incomes, including Salto de Chira, we see that the expenses grew 5.6% in an environment of increased activity and operational demand in line with the business growth and the network requirements.

Personnel expenses went up due to a larger average workforce, which was necessary to be able to meet the challenges arising from the strong growth of the group's regulated assets and also higher salary costs. Other operating expenses grew basically due to higher maintenance costs in Spain, which have contributed to have a high availability rate for the transmission network. The EBITDA grew 4%, driven mainly by higher contribution from the TSO. Also, it's noteworthy that there is an improvement in international business, aided by lower operating expenses as well as the strong performance of fiber optic business, which combines higher revenues with more contained costs.

The profit has reached EUR 506 million, which is 37.2% higher than 2024 due to the impairment recorded in 2024 following the agreement to sell Hispasat, while profit from continuing operations grew by 1.6%. We should say that the financial result worsened by EUR 20 million due to lower financial income in 2025 compared to 2024, mainly due to the lower placement of cash surpluses. Corporate income tax increased with an effect rate above 25% due to the fiscal impact and dividends that we received from group companies that are not part of the tax base. From the financial perspective, the net group's debt is EUR 5.4 billion at the end of the year, which represents an increase of EUR 100 million compared to December 2024. The cash generation, together with the EUR 725 million received from the sale of Hispasat and dividends from the group, especially from Brazil, have helped us to contain the growth of that debt and continue to have solid financial structure with an EBITDA rate of 4.4x and an FFO of net debt of 18.9%.

With the results of 2025 and what we've already seen from the period of '21, '24, we can say that we have exceeded all the objectives set out in our strategic plan for the period of 2021, 2025, placing the company in a very solid position to tackle the challenges of the new strategic plan. The TSO investments have reached EUR 4.4 billion, exceeding the initial target of EUR 3.3 billion, ending with a historic figure, as was said before, of more than EUR 1.5 billion of TSO in 2025. The EBITDA margin stood at a solid 75.8%, which also has complied with what was foreseen. We have a balanced financial structure with a net debt-EBITDA rate of 4.4% and an FFO over debt of 18.9%, and we have preserved an A- credit rating with both Fitch and Standard & Poor's.

Finally, we have ensured a stable shareholder return throughout the whole period, and we've improved even the initial dividend distribution target. In short, we're closing this plan in 2025 with an excellent level of execution and a very solid position in order to face the next stage. Now I'd like to give the floor back to our Chairwoman.

In truth, it great to hear how we met our strategy plan exceeding expectations. So, allow me to congratulate the whole team for it. In recent years, the energy industry has undergone a radical transformation. We're witnessing a new scenario driven by 3 large dynamics: the acceleration of electrification, the growing demand for network infrastructures to connect a more dispersed and fragmented generation structure and the need to ensure a secure, sustainable and competitive supply always. Electrification moves on at an unstoppable pace and the demand for electricity grows faster than global energy consumption. This change is driven by new needs, starting with the expansion of electric vehicles and data centers, and continuing to the electrification of industry, the installation of electrolyzers, heat pumps and battery factories. All these elements are redefining consumption patterns and demand more robust, smarter and more resilient networks.

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

Globally, and according to the World Energy Outlook 2025, global investment in networks will strongly grow until 2035, driven by the electrification of end consumption. For an electricity transmission operator such as Redeia, this scenario is a sustained opportunity for growth backed by a stable regulatory framework, increasing investment requirements, a clear road map for expanding and modernizing the grid and with agile administrative and environmental processing of projects, which is one of the major areas for improvement at present. Moreover, the decisive push also comes from European institutions to make decarbonization into the real driver for growth, security and energy autonomy, which are vital for the continent.

In this regard, tools such as the networks package recently presented by the European Commission seeks to boost investment in electricity infrastructure, speed up permits and improve the coordination of network planning at the European Union level. And the same can be said of the Energy Highways project, identifying up to 8 large bottlenecks in Europe that need to be resolved urgently to complete the Energy Union. These include 2 new trans-Pyrenees interconnections, which are absolutely a must to meet EU targets and enable the degree of interconnection required by the Iberian Peninsula, which, as I usually say, is more of an electricity island than Ireland itself.

This institutional commitment is fund much more complex environment. not only due to the massive integration of renewables, but also because of the emergence of new consumption modes and technologies. The electricity system is evolving towards a more dispersed structure with decentralized energy resources and increasingly active consumers. This requires new tools, new services and a much more dynamic operation of the system. To this end, digitalization will play a key role, smart grids, sensors, real-time control systems and technology platforms that will allow us to anticipate and manage events in a much more variable environment. In this context, storage will also play a fundamental role in maintaining system stability. And to face all these challenges, Redeia as system operator will have to develop new capabilities, ensuring the resilience of the system and guaranteeing the quality and security of supply at all times.

In summary, we face a more demanding situation filled with opportunities to move towards a more efficient, secure and fully decarbonized system. Thus, the national integrated plan for our country sets a clear path to advance in decarbonization and electrification of the country, setting up very ambitious targets. Amongst these, reducing emissions by 55%, increasing energy efficiency, cutting in half our dependence from the outside and achieving more than 80% savings in renewable generation in the electricity mix. Of course, the vision requires infrastructure to support it, and this is where electricity planning comes into play for the period 25-30.

This process mobilizes over EUR 13 billion in investment in the transmission grid to integrate new renewable generation, facilitate electricity consumption and strengthen security and supply. There is a '25 to '30 plan currently in the phase of analysis for the comments submitted by public consultation launched by the ministry is structured around 2 main principles. On the one hand, maximizing the use of the existing grid to make it more flexible and resilient and on the other side, deploying new infrastructures wherever necessary to integrate renewable generation, meet new consumption needs and reinforce the security and stability of supply. It also integrates new fundamental elements such as international interconnections and the connection between island and Peninsula systems.

Beyond moving ahead on these projects from the new plant, I would also like to stop here for a moment to discuss the present state of the transmission network, which can be by no means be described as collapsed. The current grid enables the circulation of electricity produced by generation facilities for a total installed capacity of 150 gigawatts, a record for the national electricity system. 70% of this installed capacity comes from renewable sources, and it's much more dispersed and fragmented into smaller plants throughout the country. But not only that, with the current network built and planned, permits have already been granted for access and connection in projects totaling another 164 gigawatts, out of which 129 belong to wind and PV facilities, 16 gigawatts for storage facilities and 19 gigawatts for demand facilities.

Out of the latter, 19 gigawatts, nearly 12 gigawatts of capacity granted since 2022, which is when the present plan was launched. And those 12 gigawatts are not in service yet, not connected to the grid and therefore, not generating demand because the developers have a minimum of 5 years to develop their projects and then connect to the grid. And even in those conditions, 25% of Red Electrica's nodes still have available capacity for new applications. Therefore, we cannot talk about lack of anticipation, considering another piece of the context. The present planning '21 to '26 contemplated proposals to deal with 2 gigawatts of new demand and 12 were granted. When these 12 gigawatts come into service, they will entail an increase of 25% of the present demand in the Spanish system.

The capacity of the transmission network that distribution operators plan to reserve for facilities connected to their own networks also doubles the historical peak of the system, which is 45 gigawatts. Even so, we need to further reinforce our networks, both distribution and transmission. The energy transition is a historic opportunity for competitiveness, industrialization and the strategic sovereignty of Europe and the Iberian Peninsula and of course, specifically for Spain. The main projects for the future plan '25 to '30 includes major access running across the Peninsula, reinforcement of rings around large cities and new links between Islands and with the Peninsula, which will enable quick deployment of renewables and new electricity consumption connected to the electrification of our economy.

We will continue to work on interconnections with France, Portugal and in the near future with Morocco to increase the security of our system. In addition to all this, we're implementing storage projects such as Salto de Chira in the Canary Islands or the Balearic Islands. And we're also integrating new voltage control elements in the Peninsula and new synchronous compensators are being installed to reinforce the voltage regulation capacity and will guarantee operational stability in scenarios with high renewable penetration and lower system inertia. In sum, it's a full nation program based on projects that structure and connect the entire national territory and will drive a visible transformation in each and every region, as you can see on this image, which is by no means exhaustive as it reflects only the scope throughout the country.

Investment in infrastructure is necessary, but it is also necessary in technology, digitalization and new capabilities in a complex system where the priority remains secure supply. To achieve this, we have the best possible organizational framework, the TSO model created in Spain precisely with Red Electrica 41 years ago and then adopted by all European countries as it is the most effective system in terms of management, the safest in terms of operation and the most efficient in investment terms. Therefore, the new plan sets out an unprecedented level of investment and this plan will be translated into new infrastructure. Between the years '25 and '30, we estimate that we will commission EUR 8.4 billion, which actually might reach EUR 9 billion if the processing procedures are streamlined as proposed by the EU and the Spanish government.

Looking ahead into 2031, virtually all the plan will have been implemented or underway with a potential of up to EUR 11 billion in commissioning and execution. In sum, we're going from ambitious planning to solid execution capacity with enough room to accelerate even further if the regulatory framework allows it. Going on to the international context, Brazil, Chile and Peru are 3 of the most attractive electricity transmission markets in Latin America, not only because they offer stable and predictable regulation framework, which is fundamental to guarantee legal certainty and long-term visibility for investments, but also because these countries have consolidated transmission models with centralized planning and transparent awarding processes, creating a favorable context for us to develop our transmission activity.

As for telecommunications in Spain, which is the third fundamental pillar for Redeia, the industry has been undergoing a deep transformation process for years now. The consolidation of large operators and local operators continues in a context in which efficiency and scale play key roles in competitiveness. And certainly, cybersecurity has become an absolute priority. Networks require increasingly advanced measures to protect critical infrastructures and safeguard user data, a trend that will continue to intensify in the coming years.

Another fundamental element is the rise of AI and automation, enabling networks in real time and significantly improving customer service, thus opening the door to new operating models. At the same time, the industry advances towards more sustainable networks with clear focus on energy efficiency and the reduction of carbon footprint, which is particularly relevant for operators with vast infrastructures over the territory. There's also a strong pains maintained in infrastructure development and sharing, which promotes efficiency and accelerates the offers significant opportunities for Rentel, the leading provider for dark fiber in the country from data centers and submarine cables to hyperscalers and the growing cloud ecosystem. The drive for technological innovation and digitalization will also be the focus of the group's technology platform, ELEWIT, which will emphasize on operational efficiency, security and the maximization in the use of assets.

And to round up the framework that will surround the company in the coming years, it is it is important to convey the meaning behind this whole strategy plan, which determines each of our actions. I'm talking about our unshakable commitment for 2029. This commitment is a direct response to our context, a clear road map to drive energy transition based on neutrality, technical rigor and innovation, a transition always guided by a deep sense of public service to add value to individuals, territories, nature and biodiversity. This is a responsibility we take on to lead this change with vision, but also with facts and data.

Our new sustainability plan that we're presenting to you today defines 2 major ambitions organized into 7 strategy vectors and supported by 5 management levers that guide our actions. The framework will guide not only our decisions, it will also make sure that each project, investment and step forward will contribute to a more sustainable energy model and generate a positive impact on the environment. In short, we are presenting today the way to turn our commitment into results and the way networks will become the true engine of sustainable transformation. For this purpose, we have set ambitious measurable goals that cover the entire group from promoting electrification and significantly reducing our emissions to ensuring a positive impact on nature and promoting regional development, including extending sustainability criteria to our entire supply chain.

We're also reinforcing innovation and digitalization, consolidating our ethical governance model and moving towards increasingly sustainable funding. Together, these objectives enable us to tackle the energy transition with rigor, responsibility and clear foresight to ensure our growth that will always be accompanied by social and environmental value. For this purpose, we have our comprehensive impact strategy and a new social innovation plan. At Redeia, we understand the importance of dialogue and sustainable positioning as a key driver for management. And that's how we understand this dialogue, not just as a mere matter of transparency, but also as a strategic tool to build trust, anticipate expectations and position ourselves as a benchmark in sustainability, both nationally and internationally. And this is proven by our bottom line that shows our continued engagement because each of the assessments we go through from Standard & Poor's Global to MSCI measures not only our environmental, social and governance performance, but also allows us to benchmark our practices against the best standards in the industry.

And thanks to this active listening approach to our stakeholders, and thanks to our alignment with international best practices and our commitment to sustainability, Redeia is now ranked at the top 1% of the world's most sustainable companies according to S&P and has once again obtained top ratings in key indicators such as the CDP's A list, among others. In sum, these results are not an end in themselves, but the natural consequence of a model based on transparency, rigor and the conviction that sustainability is central to our value proposition. We will continue to reinforce this position through open, constructive and constant dialogue with all of our shareholders so that we can continue to move forward in credibility and leadership.

I will now give the floor back to Roberto Garcia Merino, our CEO, for a deeper explanation on our strategy for the period.

Thank you very much. Now that we've analyzed this economic and sectorial context, I'm going to talk to you now about the new strategic plan for Redeia to the period 2029. This plan seeks to promote the energy model and connectivity of the future, generating a positive impact on climate change, nature, territory and people. The strategy '26-'29 that we're showing you here is a decisive step to consolidate our leadership and make sure that we have a robust electric system that is prepared for decarbonization, reinforcing the essential role that energy transmission plays in the energy transition as well as offering a reliable and technically advanced fiber optic network that will contribute to bridge the digital divide. In this regard, the plan focuses on a strong development of regulated activity in Spain. And therefore, it is our fundamental commitment for our company that more than 90% of our investments are allocated to transport and operation.

This reflects our top priority for developing electricity planning, optimizing system operation and ensuring supply quality in a rapidly changing environment. At the same time, Redeia will continue to consolidate its international and telecommunications activities, which provides stability and long-term value. The strategy also focuses on operational efficiency, innovation, digitalization. These are key elements for a more demanding and decarbonized system. Similarly, attracting and retaining diverse talent becomes an essential pillar for successfully addressing the challenges facing the electric sector.

Overall, this plan reinforces Redeia's mission to promote a sustainable and reliable and future-proof electricity system, providing shared value to society. Today, we present an ambitious investment horizon totaled EUR 6.5 billion, of which EUR 6 billion will be allocated to domestic transport activity. This brings us to a historic level of investment of TSO with an average annual investment of EUR 1.5 billion, which is 70% higher than the average annual investment from the previous strategic plans from '21-'25. If we consider the EUR 6 billion an investment that will be executed in the period '26, '29 as well the investment that took place in the year '25 and what will be taking place after this plan throughout the years of 2030 and 2031, the total amount of investment will reach levels close to those considered in the draft from '25 to 2030. Likewise, our firm alignment with the European Union's climate and sustainability objectives also reflects the fact that 100% of the TSO investments are eligible under European taxonomy.

Therefore, we expect the transport part of Spain should interconnection in the Bay of Biscay as well as the deployment of another 400 kilowatts that will connect different regions or various regions along with installation of synchronous compensators in the Peninsula, Balearic and Canary Island systems as well as the Salto de Chira project. Together, these actions will enable the company's RAP to be EUR 12 billion in 2029, and it should grow more than 35% throughout this period, reaching EUR 14.4 billion if we bear or take into account the more than EUR 2 billion of work in process that will put up to service in the subsequent years.

From another perspective, it's clear that we are facing the challenge of developing the necessary infrastructure to be able to achieve decarbonization in a highly competitive and saturated market environment. It is therefore essential to ensure the availability of the supplies and services that are needed to address the development of the TSO at a reasonable cost. However, the visibility that we have on investments for the upcoming years allows us to anticipate and take measures that significantly reduce the execution risks.

Actions such as conducting comprehensive risk assessment, which has enabled us to design new purchasing strategies adapted to a more demanding industrial context and also entering into medium- and long-term framework agreements, which provides stability in prices, terms and volumes as well as executing commodity hedges to stabilize the cost of the more sensitive equipments are becoming fundamental to our business. Thanks to all of this, we already have more than 70% of our strategic supplies guaranteed up to 2029.

All of this -- however, all of this investment would not make any sense unless we had a stable regulation behind it. And we believe that we now have good visibility and stability for the company in the next 6 years. I think they are already well known, the new methodology guarantees a return of investment of 6.58%. In addition, unit values have been updated both for CapEx with an average increase of 6.4% as well as operation and maintenance. In this case, an adjustment of 13.4% for maintenance income compared to the previous period. It is worthy to note that we've taken our first steps towards recognizing work in progress for unique facilities with amounts invested prior to the year and the commissions being recognized and capitalized for up to 5 years at the cost of debt, and that includes the calculation of the financial remuneration rate.

In our continuous effort to generate value for our shareholders, we can say that the pursuit of operational efficiency and managing leverage and financial costs will enable us to achieve a return on equity of at least 9%. Although our activity will be focused on the transport business in Spain in 2026, we will also -- '26 to '29, we will also maintain an investment plan of EUR 150 million internationally focused on strengthening and expanding transport networks in Brazil, Chile and Peru. In this way, we consolidate our presence in these regions and increase our future options. We will also continue to invest in our dark fiber business, a market in which we are a leader, thanks to having a stable, predictable model and a long-term focus. Throughout the period '26, '29, we will invest about EUR 110 million, mainly aimed at strengthening our network, expanding capacities and meeting the demanding growth for high-quality connectivity.

Our objectives for this period are focused on 4 main areas: maintaining our position as a leading provider, strengthening relationships with strategic customers, capturing new business opportunities and develop emerging business associated to the cloud and the high-performance computing. Also, we will continue to explore alliances with strategic partners that will allow us to expand our reach and reinforce our role as an essential part of the country's digital infrastructure. Another significant aspect is the technical innovation and digitalization, which are essential for driving the group's efficiency, especially in TSO. From at ELEWIT, we are developing solutions that optimize processes, strengthen security of supply and increase the use of our assets. Between '26 and 2029, we will allocate EUR 40 million to projects that support the investment plan and prepare our networks for the energy transition. For us, innovation is a key lever to ensure a safer, more efficient and future-proof system.

Now let's focus on the evolution of our economic indicators looking ahead up to 2029. These are the direct reflection of a company that is prepared to face an unprecedented investment cycle, capable of maintaining sustained growth with a greater focus on might, which is above 5% per annum. And as far as the net benefit is concerned, that growth will be about 3%. The significant growth of the net debt is directly linked to the investment rollout that is contemplated in the plan, even so we continue to have a robust financial profile with ratios that will allow us to preserve a solid credit rating and continue to access financing in a competitive form and terms. As far as shareholder remuneration, we've established a dividend policy that assumes an annual growth of 2% until it reaches EUR 0.87 per share in 2029, ensuring sustainable and consistent growth in a context of historical investments for the group.

The regulated business continues to be one of our most important cornerstones of results. 90% of the group's EBITDA comes from this activity, which gives us stability, predictability and a solid foundation for our future growth. The weight of the TSO will increase in the next coming years, driving the EBITDA growth, which will grow at a rate above 5% per annum throughout that period, reflecting our capacity to execute strategic investment, maintain operational efficiency and advance in the energy transition of the electric system.

And now that we have presented the fundamental plans of our strategic plan, we will take a closer look at our financial objectives and the road map to be able to achieve them. So now I'd like to give the floor to Emilio Cerezo. Thank you.

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

Focusing on the transmission grid, those EUR 11.4 billion in RAB will represent an average annual increase of 6.4%. Likewise, at the end of '29, Red Electrica will have a significant volume of work in progress for projects that will be commissioned in subsequent years. On the left-hand side of this slide, we break down the evolution of the transmission RAB from EUR 8.9 billion at the end of '25 to EUR 11.4 billion at the end of '29. The transmission network RAB will grow by EUR 2.5 billion as a result of the significant volume of commissioning of EUR 4.4 billion already net of subsidies, partially offset by the amortization of EUR 1.6 billion of RAB derived from the operation of the remuneration model.

And on the right side of the slide, we show the evolution of work in progress expected to grow by EUR 600 million as transport investments will exceed the aforementioned commissioning operations of EUR 4.4 billion. To run this plan with maximum solvency, we've designed a solid diversified financial structure, allowing us to run the investment plan without increasing capital. Over the course of the next few years in our strategy plan, we will have funding requirements of approximately EUR 9.4 billion, mostly derived from the significant volume of investments that we've been mentioning along with the payout of dividends to our shareholders. As you can observe on the left-hand side of the slide, the EUR 9.4 billion will be funded through the FFO we will generate, the collection of subsidies and new financial debt contracts.

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

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

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

Thank you very much, Emilio. And to conclude this presentation, I'd like to summarize the key messages that define our strategic plan 2026, 2029 and the path for growth that we have built for the upcoming years. In this period, 2025, 2029, Redeia is undertaking the most ambitious investment cycle in its history with a total of EUR 6.5 billion, which is a figure that reflects our firm commitment to energy transition. A large part of these investments are aimed at expanding and modernizing the transmission network to meet the growing needs of electricity system, the massive integration of renewable energies, electrification of the economy and structural improvement and resilience of our infrastructure. All of this results in a significant increase of RAB of 35%, reflecting the expansion of the network and new commissioning reaching EUR 12 billion at the end of 2029, rising to EUR 14.5 billion if we consider estimated work in progress at the end of the plan.

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

Furthermore, we look beyond this period covering our strategic plan, we will consolidate the growth initiated this investment in this period as the RAB will exceed EUR 15 billion at the end of 2031, and we will also have work in progress worth around EUR 2 billion in projects that will become on stream in the future, which we'll be able to confirm once the new planning has been approved. We are on a solid growth trajectory, which ensures long-term visibility, representing a quantum leap for Redeia in terms of RAB with greater remuneration capacity and a structural contribution to the development of the Spanish electricity system.

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

[Operator Instructions] First question from Flora Trindade from CaixaBank.

I have 2 of those. I imagine there will be many questions, so I don't want to take up much of your time. I wanted to understand the CapEx you have reserved for the plan because in '25, you had a CapEx of EUR 1.55 billion and then the average drops throughout the rest of the plan. I wanted to understand why this average goes down and whether you see any upside in these investment levels beyond 2026? That's the first question. The second one, in terms of your funding, you're not including any type of asset turnover or rotation. Is this part of the plan if things don't go exactly according to plan, what you intend to do and which countries might become a priority for you, if that's the case?

Well, thank you very much, Flora, for your questions. First of all, I believe we have a very clear investment horizon for the -- for oncoming years, at least within the scope of our strategic plan. This year, we finished 2025 with a record number of approximately EUR 1.5 billion, which is the order of magnitude we expect as an average for the whole period of the future plan. Our engagement is EUR 6 billion during the period '26 to '29. That's 4 years. Therefore, our expectations, and we're pretty certain of those is that execution capability in terms of investment will remain around those EUR 1.5 billion per year during the length of the plan. And I believe we're making a significant effort to that endeavor.

If we compare our present plan to the last one, that's an increase of 70%, 70, and the level of certainty in our investment is very high, even under strict standards since we have already secured practically all the critical supplies to run the plan and most plants are in a well-advanced stage of permits or commissioning. So that's a very solid calculation. About your question about assets. Well, fortunately, our starting point in financial terms is very robust despite the level of investments we're contemplating. We assume we can fund this strategy plan with our own capital without going to the market. Well, obviously, we will have to increase our hybrid debt. And certainly, we also have European funding and other types of subsidies. And our investment horizon will probably, after a rating review will remain robust in terms of financial solvency. So, we will not -- we will not need any disinvestments as we did in our '21 to '25 plan.

Certainly, this yields for opportunities. In case the investment pace were to be accelerated, we have additional drivers like deconsolidation or the partial disinvestment of some non-TSO-related assets. But according to the initial plan, that will not be necessary, and we can finance our operations without any capital increases and just use the regular channels for funding in our plan.

Next question comes from Javier Suarez from Mediobanca.

I had 3 questions. The first one has to do with the blackout that you mentioned recently throughout your presentation, like the origins and causes and effects of the blackout. So, I wanted to ask you, from your point of view, what -- actually, like what should we learn in Spain and the rest of Europe? What should we have learned from this blackout? And what measures have been included in your business plan to make sure that this situation does not happen again? And in that sense, I also wanted to ask about the documents that we'll be waiting for about the responsibilities that are connected to the blackout and what documents are these? And I understand there's one from the Spanish regulator. And is there any other type of fine? Or should we assume that the attitude of the management of not having money ready for this, would that change if we have some kind of fine because of the blackout? That's the first question.

Second one has to do with the extending the business plan up to 2029. So why has the company not extended it beyond 2029? That really has to do with the new plan and the infrastructure plan has not been approved. But I do believe that there's a lot more visibility after 2029 and perhaps bearing in mind that the company will have new services above and beyond the last date of the business plan you've showed us perhaps the growth of the company has not been valued properly, valued too low, infra valued because of this. So, I would like to try and understand why have you decided to have a cutoff time for 2029 and not a date further on?

Third question, financing for the plan. Have you included getting to the end of the plan? You decided to get there with EUR 2 billion with hybrid debt. And we're talking about the EPS now because that should discount the financial cost that is connected to this hybrid debt. So, it's fair to say that, that EPS growth will be lower than the -- what you've been pointing out? And to what extent could that be lower?

Well, very well. How about if we divide up these questions? With regards to the blackout on the 28th of April and the reports that are pending, I think the most relevant one have already been printed, and we got one from the government committee and an article had to do with national security. Another was the report that the operating sister made, and they were obliged to do this because of the norms that we have, the laws that we have when something like this happens in Spain. And then also the -- we named -- the European Union named an expert panel for this, and that's the third one. So chronologically explains everything without any doubt of the data and the rigor, what were the various or different incidents that happened throughout this whole process, starting by what happened at 2 in the morning or at 12:03, rather. So very well.

So, the transmission network never failed. We had more than 7,000 maneuvers without having any kind of failure. So, the maintenance of the part that has to do with Red Electrica was actually complied with at all times. And we'll see this in these reports and in forms. But we see that some of the laws were not complied with -- this is by the transport company. And in our annual accounts, we have not included this because we don't believe that we're going to be responsible for any matter, bearing in mind that we complied with the laws in a very strict manner. What we cannot ensure is that all of the agents of the sector actually did the same. Now in the strategic plan, there is -- well, it reflects many things, although it's not totally concrete, but it's the planning for 2025, 2030 that has not yet been approved. We hope it will be approved at the end of this year.

But as we said before, here, we gather like a whole series of infrastructures that so far were not operative in Spain, such as synchronous compensations and also through changes in the planning in 2024 and especially in 2025, we have included tools for start comes and fast and other matters. So, our plan, Salto de has decided to make all of this infrastructure that will give us an operating system that is resilient and safe with greater guarantees so long as that we can always guarantee that the other agents of the sector comply. And as our CEO just said, we have taken some decisions to be able to have material and special material, especially the more critical ones to be able to be in the right condition to deploy this infrastructure as soon as possible because actually, the laws that we have now does not let us change this infrastructure at this point until such time that the planning has been approved completely.

So, we have 70% of all of this material for this plan 2026, 2029. Therefore, we're in the right conditions to incorporate all of these new tools that the planning establishes for this electric network. With regards to the reports that are pending, we foresee that the main report at the end of March should be ready with the measures and recommendations will be incorporated into that report. And with regards to the regulator, as far as we know, files have been open and research is being done. They've asked information from the sector.

And as it was recognized by the ministry from 67 companies that were asked for information, we have been the only one that has been totally transparent with the data and the origins, we at Red Electrica. And therefore, so that's a question that the regulator should answer. Like what is the period that this file is going to be ready? And what step will be taken once we know its content. Your turn.

Thank you, Javier. Thank you for your questions. With regards to the plan and the period and how long it lasts, we've decided -- well, it has to do with the visibility that we have and the commitments that we have to assume with the market. As we were saying before, we are very clear and we are certain that our period of 2026, '29 is very clear. And we do have a certain sort of visibility or -- but not so much commitment for executing between 2030 and 2031 because as you said, that investment that will be taking place between 2030 and 2031, it depends also on the final approval of the new planning. But what is true is that we have moved forward with significant projects that will be up and running around about 2029. And right now, we don't know if it's going to be in 2030 or if it might be delayed until 2031.

That's why we have not wanted to have a firm commitment with the market beyond 2029. What is true is that the visibility that we have of putting in service or the up and running that we can get by the end of 2031 is quite clear actually. Once we have reflected the level of the RAB of EUR 15 billion is also an objective that is something that we can attain. But of course, we have assumed this financial commitments is more complicated to do it in such long term. So, we wanted to give a reliable information and things that we know that we'll be able to comply for right now and then wait until we have proper approval of the necessary matters to be able to commit to things after 2031 for like 2030 and 2031. But what is true is that the visibility that we have now, and we're talking about the years '30, '31, we're talking about volumes that are above EUR 4 billion in those 2 years.

So, we'll have to wait to see that we do have a proper plan to be able to be much more concrete on this matter. But in any case, the visibility that we're giving now as far as the evolution of the RAB is truthful, and we wanted to assume financial commitments up to 2029, where we have greater certitude. Emilio, would you like to answer the next question?

Thank you, Javier. With regards to what you said about hybrid debt, we want to have EUR 2 billion of hybrid bonds at the end of our plan, which bring us close to the maximum capacity that we have for that instrument so that we will be able to be qualified as equity content as far as our rating agencies are concerned. And it's true that the accounting treatment that we're giving to the hybrid, as you know, is to consider within our equity, the EUR 2 billion and payment for the interest is also registered within all of our equity and the profit and loss. And also, the increase of -- well, the interest rates of the hybrids, if we were to account for them within our results, the average result that we would have is would be less than 1% of these emissions throughout the next few years.

Next question comes from Ignacio Domenech from JD Capital.

Mine is about your rating. In 2029, you're setting up a guideline for a net debt exceeding 14%. And I understand that unless the S&P rating changes, that would not be compatible with maintaining BBB+. So, considering your talks with the rating agencies, do you expect them to soften these targets, this guidance or perhaps it's not a priority for you to hold on to that BBB+?

Well, thank you for that question, Ignacio. About financial solvency, well, historically, and obviously, as part of this plan, Redeia's priority is maintaining a solid credit rating without committing to a different rating. Certainly, our investment volume will bring us close to financial ratios that might maintain the company in BBB+ just as will happen to other peers in the same field. Based on the analysis we have conducted on financial ratios, we're confident that we will remain there without making a firm commitment to any rating whatsoever. Our priority is remaining financially solid to tackle our strategic plan and maybe future developments, too. But consistently with other recent reviews from other agencies, we do expect to maintain that BBB+ credit solvency.

That's what we expect from the outcome of rating agencies reports. They will have to assess a different Redeia without Hispasat in the group, and with a vision -- a different vision on the April 28 incident that differs from the view when the incident had just happened. So, in financial terms and in terms of debt, I am convinced that we will still have a good credit rating, and we expect a revision that will keep us at BBB+.

Next question from Gonzalo Sanchez from UBS.

So, I have a couple of questions. The first one has to do -- well, first of all, I'd like to understand the possible leveraging that we have because of the risk of these figures going up and down that you presented today. Regarding investments and let me explain myself. If there is an additional delay from, we're waiting as far as like the approval of the investment plans, then I assume this could generate 2 situations and one would be that the investments are more expensive than what we foresee due to inflation. And then in the second place, the part that's not insured, that 30% that is not insured would be open to these fluctuations. So, I'd like to understand how are you considering this with regards to possible risks to going up or going down because as far as I understand, according to new regulation, there is a certain pass-through. But still, I wonder how would you consider this at a mathematical -- from a mathematical standpoint. So that's it going up, going down, but especially if it's going down.

But as far as going up is concerned, you have given a delivery throughout 2026, very interesting as far as the EBITDA margin, which is much higher than what was considered in the plan. So now I understand that you're taking a much more conservative point of view as far as the increase of these margins. So, I'd like to understand what type of leverage the company has to be able to improve that result. And then generally speaking, any kind of upside or downside in this sense would be interesting.

And then the second question has to do with what was mentioned about the rating. Due to the conversations, we had before, I understand that, that 14% would be within the ranges of BBB+, of 2 of these rating agencies. So, I'd like to understand what is the type of conversation that's happening with this on that subject matter, are you expecting a change? And if there is going to be a change, what kind of impact could that have in the plan with greater flexibility? I mean, what would the impact be in the plan?

Thank you very much, Gonzalo. Very well. With regards to the commitment for investment, '26 to '31, this is actually quite -- you're right in what you say. There is a potential for delay in the planning. And if it were significant, it could affect it a bit. But I want to remind you that there is a volume for investment, which is a volume that is really quite important. These monies, they come from the planning that we have now and then we're putting it in the other plan that is being analyzed. So '26, '27 and all the way to part of '29 corresponds to that monies that we have at least for the next 3.5 years. And it's real and true. And of course, there will be something pending for the approval, for the planning, but we have this intuition and due to the interest, that is needed for the deployment of these infrastructures that it can be a quick approval in this very year.

And we also have mechanisms that might be taking place throughout the strategic plan period in order to accelerate these periods and to be able to compensate a potential delay. So as far as investment is concerned, I think it's really quite -- the certitude level is quite high. So, we haven't wanted to commit beyond 2029 because then between 2030, 2031 will need to be approved later on. But as far as the plan period, these objectives are really quite firm. With regards to possible price evolution, I don't think we are -- we're in the situation we lived through 2 or 3 years ago. We do see that most of the supplies and the equipment have stabilized the prices. And in those critical supplies with a greater demand, we have acted or jumped the gun as it were, and that is much more concrete. And so, we don't see any difficulties or potential changes.

And also, Gonzalo, the new framework that we have for regulations and distributions also gives us -- well, it permits us to assume various deviations as far as the cost of this is concerned. So, we're really quite comfortable in our objectives and the evolution of investments. With regards to what we can add to operating profit from a strategic plan and the ups and downs, the company has to have enough means to be able to face this growth, and it is a process that we have already started, and that will continue throughout this year and part of 2027. And that, in fact, does affect the rates of the EBITDA and its efficiency.

And remember that we're starting with a volume that was quite relevant at the end of 2029. And of course, those ratios are going to affect -- have an effect. And of course, will be much more efficient in the future. But we have decided to be conservative as far as exploitation expenses are concerned to be able to maintain the growth that we're talking about. And just another thing, let's talk a little bit more about that the efficiencies that we see as far as financial structure is concerned for the cost of the equity and also some thoughts about the rating, but I also want to tell you what I was saying before with regards to the rating agencies and the [indiscernible] that Redeia has to them.

As we said before, the context of the company has changed radically from the last few revisions, reviews and the focus on regulated activity is much clearer. And really, what we expect to see is a treatment similar to other companies within Europe that have these same types of ratios that are going to be better than what have been applied to us in other years and in Spain and in other years. But I believe that the relationship we have with these agencies is quite close.

We do believe that this horizon of BBB+ is the horizon that we think that we can reach. However, in a hypothetic case that there's much more investment or a much more restrictive position from the agencies. I'd like to remind you that we still have leveraging or hedging within the company to be able to reinforce this financial structure of the group if it is needed.

Thank you. And continuing with what you said, first of all, talking about ratios. I think it's really important to highlight that these ratios of our credit ratios are very solid. In fact, much better than many others within Europe. And it's important to highlight that. Quite sincerely, we think they are clearly compatible with a BBB+ as far as our agencies are concerned and even a AAA+. And we think that, that will be the qualification that we will achieve from now on a AAA+. And we're looking at a solid investment grade. But in any case, this is a decision that has to be taken by both agencies according to what they want to do and Standard & Poor's and the others. And as far as upsides are concerned and adding something and some aspects that Roberto was saying, I also think it's important to say that from a financial point of view, we see upsides quite clearly by improving our cost of the debt compared to what we have in the pretax 658. And in any case, we're going to have average financial cost that's going to be better than what we've already shown.

So also, what improves this 46%. Bearing in mind how solid we are in our balance sheet and our projections and all of these things, we believe that we're going to have higher leverage than 46%, keeping that solid investment grade. And by combining these 2 factors, better hedging and better cost of our debt, which is highly competitive, will permit us to create value. And as you heard not too long ago, to be able to get a return on investment above 9% and one of the important leverages that we have to have that ROI that is so attractive to create value for our shareholders has to do with our capacity for hedging and to be able to get into debt at a very competitive cost.

Next question from Fernando Garcia from RBC Capital Markets.

I only have one question after everything you've said, and it's about the incentives you're using for your net guidance for 2029. Emilio, you just talked about financial performance. So, are you also considering operational outperformance and are you using any of that for your 2029 guideline? Or are you considering any incentives to generate some upside for your 2029 guidance?

Excellent. Thank you very much, Fernando, for your question. Well, about the level of incentives we have integrated into the plan. As you know, our approach is usually very conservative. So, we prefer not to include any kind of incentives into the base case scenario we presented today. There might be an upside, but we don't want to make any comments on that. At an operational level, we're also being conservative in the hypothesis we have included into the plan. Certainly, by integrating new asset management policies and new elements related to innovation, we might -- just might achieve some operational efficiencies within the model.

Perhaps just to give you a flavor on it, well, there is a remuneration for works in progress, and that affects the investment portfolio we have planned within the plan. Another part of the portfolio is not affected, but the way it is conceived it might represent a loss of return in terms of the financial remuneration rate. But that deficit generated by not applying work in progress to the whole asset base can be offset. And as Emilio was saying, by financial management with medium and final cost of debt under the regulation threshold established in the FRR, we can generate value above that 9% return on equity we're considering.

There are no further questions in Spanish. We will now take questions. [Operator Instructions] Our first question comes from Arturo Murua of Jefferies.

We are not receiving any audio questions from line. [Operator Instructions]

Well, it doesn't seem like there were any further questions. So, we go on to the questions we have received online. Most of them have already been answered. Daniel Rodriguez asks us the estimated cost of hybrid bonds and whether or not it is contemplated into the 3.3% contemplated in the estimated cost of debt. And Mafalda Pombeiro has 2 quick questions. The EUR 6 billion CapEx target, is it gross or net of subsidies as year-on-year? Or does it follow a growing progression?

Well, thank you. The cost of the hybrid instruments we're contemplating is approximately 4% to 5%. Certainly, as you know, the market is looking very attractive now. And if we were to invest, we would come very close to that 4%. That 3.3% we set up as average financial cost for 2029 does not integrate hybrid instruments, but it does integrate the cost of funding of our telecom business and our international business, which are funded mostly in U.S. dollars.

As I said before during the presentation, our average funding cost in the plan is 2.8%. If we were to integrate 50% of the cost of hybrids, that would take us to 3%. And if we consider the entire cost of hybrids, that would bring us to approximately 3.2%. And perhaps to answer Mafalda, just to clarify the numbers, those EUR 6 billion in investment are a gross number. We can consider an average annual investment of EUR 1.5 billion, going slightly up or down 1 year or the next, but we consider EUR 1.5 billion as an annual average. It is important to remember.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]