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Financial statements

for the year ended 31 December 2024

Redeia Corporación, S.A.

Redeia Corporación, S.A. Balance sheet at 31 December 2024

Thousands of euros	Note	31 Dec. 2024	31 Dec. 2023
Non-current assets		4,487,839	3,578,379
Intangible assets	5	22,040	16,383
Software		22,040	16,383
Property, plant and equipment	5	76,592	72,033
Land and buildings		58,098	60,232
Other fixtures, machinery, tools, furniture and other PP&E		7,287	5,999
PP&E under construction and advances		11,207	5,802
Investment properties	6	558	558
Land		558	558
Non-current investments in group companies and associates		4,355,501	3,459,441
Equity instruments	8	3,705,460	2,848,915
Loans to companies	21	650,041	610,526
Non-current financial assets	12	2,641	5,721
Equity instruments		1,543	2,825
Loans to third parties		523	706
Derivatives	11	440	2,168
Other financial assets		135	22
Deferred tax assets	17	30,507	24,243
Current assets		532,246	1,191,083
Trade and other receivables	13	40,985	244,208
Trade receivables from group companies and associates	21	37,893	37,070
Other receivables		25	171
Payable to employees		149	174
Current tax assets		470	205,530
Other taxes receivable		2,448	1,263
Current investments in group companies and associates	21	435,742	816,896
Loans to companies		435,742	816,896
Current financial assets	12	964	1,029
Other financial assets		964	1,029
Prepayments for current assets		2,361	1,670
Cash and cash equivalents		52,194	127,280
Cash		706	2,239
Cash equivalents		51,488	125,041
Total assets		5,020,085	4,769,462

Redeia Corporación, S.A. Balance sheet at 31 December 2024

Thousands of euros	Note	31 Dec. 2024	31 Dec. 2023
Equity	14	3,396,688	3,717,033
Capital and reserves		3,377,359	3,698,034
Capital		270,540	270,540
Reserves		2,535,741	2,643,811
(Own shares)		(11,780)	(19,496)
Profit for the year		190,940	450,428
(Interim dividend)		(108,082)	(147,249)
Other equity instruments		500,000	500,000
Valuation adjustments		19,329	18,999
Financial assets at fair value through equity		18,999	18,999
Hedging transactions		330	–
Non-current liabilities		774,567	599,659
Non-current provisions	15	21,528	20,266
Non-current borrowings	16	709,720	538,100
Notes and other marketable securities		494,716	399,299
Bank borrowings		208,587	138,785
Derivatives	11	6,401	–
Other liabilities		16	16
Non-current borrowings from group companies and associates	21	41,594	39,622
Deferred tax liabilities	17	1,725	1,671
Current liabilities		848,830	452,770
Current borrowings	16	565,732	195,914
Notes and other marketable securities		433,618	25,630
Bank borrowings		5,766	6,794
Other current borrowings		126,348	163,490
Current borrowings from group companies and associates	21	258,366	232,795
Trade and other payables	18	24,732	24,061
Payables to group companies	21	12	8
Other payables		12,492	11,594
Payable to employees		10,743	11,059
Other taxes payable		1,485	1,400
Total equity and liabilities		5,020,085	4,769,462

Redeia Corporación, S.A. Statement of profit or loss for the year ended 31 December 2024

Thousands of euros	Note	2024	2023
Revenue	20.a	460,962	548,376
Provision of services		81,875	78,051
Finance income from investments in equity instruments		301,260	415,051
Group companies and associates		301,260	415,051
Finance income from investments in securities and other financial instruments of group companies and associates		77,827	55,274
Self-constructed assets	5	456	331
Cost of sales		(489)	(187)
Raw materials and other consumables used		(489)	(187)
Other operating income		472	563
Non-trading and other operating income		392	563
Release of grants related to income		80	–
Employee benefits expense	20.b	(48,597)	(47,080)
Wages and salaries		(35,768)	(34,855)
Employee benefits		(8,004)	(7,301)
Other items and employee benefits		(4,825)	(4,924)
Other operating expenses		(27,058)	(25,107)
External services		(26,444)	(23,829)
Taxes other than income tax		(614)	(1,278)
Depreciation and amortisation	5 & 6	(9,456)	(7,421)
Impairment of and gains/(losses) on disposal of fixed assets	20.d	–	1,279
Impairment and losses		–	1,279
Impairment of and gains/(losses) on disposal of financial assets	20.e	(143,455)	–
Impairment and losses		(143,455)	–
Operating profit		232,835	470,754
Finance income	20.c	9,909	7,645
Marketable securities and other financial instruments		9,909	7,645
Third parties		9,909	7,645
Finance costs	20.c	(38,365)	(21,442)
Borrowings from group companies and associates		(10,989)	(6,963)
Borrowings from third parties		(27,124)	(14,184)
Unwinding of provision discounting		(252)	(295)
Change in fair value of financial instruments	11	68	(510)
Held-for-trading portfolio and other securities		68	(510)
Exchange differences		(154)	7
Net finance cost		(28,542)	(14,300)
Profit before tax		204,293	456,454
Income tax	17	(13,353)	(6,026)
Profit for the year from continuing operations		190,940	450,428
Profit for the year		190,940	450,428

Redeia Corporación, S.A. Statement of total changes in equity for the year ended 31 December 2024

Thousands of euros	Share capital	Reserves	(Own shares)	Profit for the year	(Interim dividend)	Other equity instruments	Subtotal: capital and reserves	Valuation adjustments	Total equity
Balance at 31 December 2022	270,540	2,266,292	(26,296)	947,571	(147,143)	–	3,310,964	18,999	3,329,963
Total recognised income and expense	–	611	–	450,428	–	–	451,039	–	451,039
Transactions with shareholders or owners
(-) Dividend distribution	–	1,091	–	(393,528)	(147,249)	–	(539,686)	–	(539,686)
Transactions with own shares (net)	–	(1,021)	6,800	–	–	–	5,779	–	5,779
Other changes in equity
Appropriation of prior-year profit	–	406,900	–	(554,043)	147,143	–	–	–	–
Other equity instruments	–	(30,062)	–	–	–	500,000	469,938	–	469,938
Balance at 31 December 2023	270,540	2,643,811	(19,496)	450,428	(147,249)	500,000	3,698,034	18,999	3,717,033
Total recognised income and expense	–	(745)	–	190,940	–	–	190,195	330	190,525
Transactions with shareholders or owners
(-) Dividend distribution	–	809	–	(393,527)	(108,082)	–	(500,800)	–	(500,800)
Transactions with own shares (net)	–	(441)	7,716	–	–	–	7,275	–	7,275
Other changes in equity
Appropriation of prior-year profit	–	(90,348)	–	(56,901)	147,249	–	–	–	–
Other equity instruments	–	(17,345)	–	–	–	–	(17,345)	–	(17,345)
Balance at 31 December 2024	270,540	2,535,741	(11,780)	190,940	(108,082)	500,000	3,377,359	19,329	3,396,688

Redeia Corporación, S.A.

Statement of recognised income and expense for the year ended 31 December 2024

Thousands of euros	2024	2023
Profit for the year	190,940	450,428
Cash flow hedges (note 19)	440	–
Actuarial gains and losses and other adjustments (note 15)	(993)	815
Tax effect	138	(204)
Income and expense recognised directly in equity	(415)	611
Amounts reclassified to profit or loss	–	–
Total recognised income and expense	190,525	451,039

Redeia Corporación, S.A.

Statement of cash flows for the year ended 31 December 2024

Net cash flows from operating activities 444,407 376,372 204,293 456,454 Profit for the year before tax (195,888) (448,089) Adjustments to reconcile profit before tax to net cash flows 9,456 7,421 Depreciation and amortisation Impairment 143,455 – Change in provisions 1,746 1,794 Gains/losses on derecognition and disposal – (1,279) (388,996) (477,970) Finance income 38,365 21,442 Finance costs 154 (7) Exchange gains/(losses) Change in fair value of financial instruments (68) 510 (1,062) (38,694) Changes in working capital (1,866) (20,109) Trade and other receivables (691) 221 Other current assets 1,495 (18,806) Trade and other payables 437,064 406,701 Other cash flows from operating activities Interest paid (44,542) (25,933) Dividends received 301,261 415,051 10,722 7,392 Interest received 169,914 10,500 Income tax received/(paid) (291) (309) Other amounts received/(paid) Net cash flows used in investing activities (595,561) (365,630) (623,017) (803,185) Payments for investments (587,593) (776,627) Group companies and associates PP&E, intangible assets and investment properties (16,776) (12,175) (18,478) (14,314) Other financial assets


























(170) (69) Other assets
27,456 437,555 Proceeds from disposals
Group companies and associates 24,751 33,502
PP&E, intangible assets and investment properties – 2,400
Other assets 2,705 1,653
– 400,000 Other financial assets
Net cash flows from financing activities 76,065 58,043
7,274 500,289 Proceeds from and payments for equity instruments
7,275 5,779 Purchase and sale of own equity instruments
(1) 494,510 Other equity instruments
Issuance and repayment of financial liabilities 608,759 97,333
494,421 – Notes and other marketable securities
Bank borrowings 57,393 147,225
56,945 111,867 Borrowings from group companies and associates
Repayment of other borrowings – (161,759)
Dividends and payments on other equity instruments (539,968) (539,579)
(539,968) (539,579) Dividends
Effect of changes in exchange rates on cash and cash equivalents 3 (13)
Net (decrease)/increase in cash and cash equivalents (75,086) 68,772
Cash and cash equivalents at 1 January 127,280 58,508 Cash and cash equivalents at 31 December 52,194 127,280

1	Company information	8
2	Basis of preparation	8
3	Proposed appropriation of profit	9
4	Material accounting policies	10
5	Intangible assets and PP&E	16
6	Investment properties	18
7	Operating leases	18
8	Investments in group companies and associates	19
9	Financial risk management policy	23
10	Financial instrument analysis	24
11	Derivative financial instruments	27
12	Current and non-current financial investments	28
13	Trade and other receivables	29
14	Equity	29
15	Non-current provisions	32
16	Current and non-current borrowings	33
17	Tax matters	34
18	Trade and other payables	37
19	Disclosures regarding average supplier payment term. Additional Provision Three - "Disclosure requirements" under Law 15/2010 of 5 July 2010	37
20	Income and expenses	38
21	Transactions with group companies, associates and related parties and resulting year-end	41
22	Director remuneration	44
23	KMP remuneration	46
24	Segment information	47
25	Guarantees and other commitments extended to third parties and other contingent liabilities	47
26	Environmental disclosures	47
27	Other information	47
28	Share-based payments	48
29	Events after the reporting date	48
30	Explanation added for translation to English	48

1 Company information

Redeia Corporación, S.A. (hereinafter, Redeia Corporación or the Company), was incorporated in 1985 and has its registered office in Alcobendas (Madrid). Its main activities are:

Managing the corporate group, which comprises equity investments in group companies and their investees.
Providing support services and other assistance to its investees.
Managing the Company's properties.

2 Basis of preparation

a) True and fair view

The financial statements were authorised for issue by the Company's directors on 25 February 2025 to give a true and fair view of the Company's equity and financial position at 31 December 2024, and its financial performance and the changes in its equity and cash flows during the year then ended.

The financial statements are presented in thousands of euros, the Company's functional and presentation currency, rounded to the nearest thousand, and prepared from its accounting records in accordance with prevailing legislation, Spain's General Accounting Plan, enacted by Royal Decree 1514/2007, as amended by Royal Decree-Law 1159/2010 and Royal Decree 1/2021, and the Resolution issued by the ICAC (Spanish Audit and Accounting Institute) on 10 February 2021.

The Company is the parent of a group of companies called Redeia (hereinafter, Redeia or the Group), which, in accordance with article 43.2 of Spain's Code of Commerce, issues consolidated financial statements in keeping with applicable legislation, specifically in accordance with the International Financial Reporting Standards approved by the European Union. The Group's consolidated financial statements for 2024 will be authorised for issue on 25 February 2025.

The Company's 2023 financial statements were approved at the Annual General Meeting held on 4 June 2024. The 2024 financial statements are pending ratification at the Annual General Meeting. However, the Parent's Board of Directors expects them to be approved without modification.

b) Mandatory accounting policies not applied

The Company has not omitted any mandatory accounting policy with a significant effect on its financial statements.

c) Use of estimates and assumptions

Preparation of the financial statements requires the Company's management to use judgement and make estimates and assumptions that affect application of its accounting policies and the recognised amounts of assets, liabilities, income and expenses. The estimates and assumptions made by the Company are based on past experience and other factors considered reasonable under the circumstances. Actual results may differ from these estimates.

The 2024 financial statements make occasional use of estimates made by the Company's management, which are later ratified by its directors, in order to quantify certain of the assets, liabilities, income, expenses and obligations recognised therein. Essentially, those estimates refer to:

The estimates and assumptions used to test asset recoverability (note 4-g).
The estimated useful lives of the Company's fixed assets (note 5).
The assumptions used in actuarial calculations (note 15).
The assumptions and estimates used to calculate the fair value of derivative financial instruments (note 11).

Generally, liabilities are recognised when it is probable that the obligation will give rise to an indemnity or payment. The Company assesses or estimates the amounts payable in the future, including those

corresponding to income tax, contractual obligations, the settlement of outstanding lawsuits or other liabilities. These estimates require interpreting current events and circumstances, projecting future developments and estimating what financial impacts those events will have.

For a better understanding of the financial statements, the various estimates and assumptions made are outlined in each note.

The Company has insurance coverage against third-party claims that could arise in the ordinary course of its business activities.

Although the estimates were made on the basis of the best information available at 31 December 2024 regarding the facts analysed, future events could make it necessary to revise them (upwards or downwards) in coming years. Changes in accounting estimates would be applied prospectively in accordance with the Spanish General Accounting Plan, recognising the effects of any change in estimates in the related statement of profit or loss.

d) Comparative information

For comparative purposes, the Company has included the 2023 figures alongside those of 2024 for each item of the balance sheet, statement of profit or loss, statement of changes in equity, statement of cash flows and the accompanying notes. The 2023 figures presented here formed part of the 2023 financial statements.

The accounting policies and measurement rules used to prepare these annual financial statements are identical to those used to prepare the Company's 2023 financial statements.

e) Going concern

At 31 December 2024, the Company's working capital was negative by 316,583 thousand euros (2023: positive by 718,313 thousand euros). Nevertheless, the Company ensures it has sufficient funds to cover its liquidity requirements at all times by holding undrawn credit facilities (note 9). The directors believe that the Company will not encounter difficulties in raising the funds needed to restore financial equilibrium and satisfy its payment obligations as they fall due. Moreover, the Redeia Group, of which Redeia Corporación is the parent, reported positive working capital at 31 December 2024 and a solid financial position, ensuring the ability to meet the Group's financing requirements in the short term. As a result, the Company's directors have prepared the accompanying financial statements on a going-concern basis.

3 Proposed appropriation of profit

The directors propose the following appropriation of profit for 2024, subject to ratification by the Company's shareholders at the Annual General Meeting:

Thousands of euros
Profit for the year	190,940
Voluntary reserves	241,790
Total basis of appropriation	432,730

Appropriation to:

Dividends:
Interim dividend	108,082
Final dividend	324,648
Total appropriation	432,730

This motion implies a final dividend of 0.60 euros per share for a total dividend for the year of 0.80 euros per share, calculated for all outstanding shares.

The interim and final dividends for the year and substantiating liquidity statement are detailed in note 14.

4 Material accounting policies

The significant accounting policies used to prepare these annual financial statements are detailed below:

a) Intangible assets

Intangible assets are measured at acquisition or production cost, as appropriate, which is reviewed periodically and adjusted for any decrease in value. The assets included under this heading relate to software, including user licences purchased, which are recognised at the cost incurred to acquire them and get them ready for use.

Production cost includes the expenses related directly with development of internally generated intangible assets for projects under the Company's control and management.

Costs associated with maintaining software programmes are recognised as an expense as incurred. Software is amortised on a straight-line basis over a period of between three and five years from when it is put into use.

b) Property, plant and equipment

The main assets under this heading are land and buildings which have been measured at construction or acquisition cost less accumulated depreciation and any accumulated impairment losses. Construction costs can include the following items:

The external borrowing costs accrued exclusively during the construction period.
The operating expenses related directly with the construction work for developments under the Company's control and management.

The Company transfers assets from work in progress to property, plant and equipment in use as soon as the asset is ready for its intended use.

The costs incurred to extend or upgrade items of property, plant and equipment that entail an increase in the asset's productivity or capacity or an extension of its useful life, are capitalised.

Repair and maintenance costs that do not increase the assets' productivity or capacity or lengthen their useful lives are expensed as incurred.

Property, plant and equipment is depreciated by distributing the cost of the various items on a straight-line basis over the estimated years of useful life, which is the period over which the Company expects to use the asset, as follows:

	Annual rate
Buildings	2% - 10%
Other facilities	4% - 25%

The Company periodically checks its depreciation rates as a function of its assets' useful lives. There were no significant changes in the asset depreciation criteria used in 2024 relative to those used in 2023.

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

c) Investment properties

The Company measures its investment properties at their acquisition cost. The fair values of the Company's investment properties are disclosed in note 6.

The Company's investment properties other than land are depreciated on a straight-line basis by distributing the cost of the various items linearly over their estimated useful life, which is the period of time for which the Company expects to use them (annual rate of 2%).

d) Leases

The Company classifies its leases as a function of whether or not it substantially transfers the risks and rewards of ownership.

Specifically, it classifies arrangements in which it retains substantially all the risks and rewards incidental to ownership of the leased assets as operating leases.

e) Financial assets and liabilities

• Financial assets

The Company classifies its financial assets for measurement purposes on the basis of the corresponding business model and the characteristics of the contractual cash flows. A financial asset is only reclassified from one category to another when there is a change in the business model used to manage them.

Financial asset acquisitions and disposals are recognised on the date the Company undertakes to acquire or sell the asset, classifying them into the following categories:

◦ Financial assets at amortised cost: In general, this category includes trade receivables, which are financial assets arising on the sale of goods and rendering of services in the course of the Company's trade operations with deferred payment, and non-trade receivables, which are financial assets that are neither equity instruments nor derivatives not arising on trade transactions with fixed or determinable payments arising from loans or credit transactions granted by the Company.

They are non-derivative financial assets held to collect contractual cash flows that are solely payments of principal and interest. They are included under current assets, unless they mature more than 12 months after the reporting date, in which case they are classified as non-current assets.

They are initially recognised at fair value which, barring evidence to the contrary, is the transaction price plus directly attributable transaction costs. These financial assets are subsequently measured at amortised cost using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of a financial instrument to the net carrying amount of that instrument based on its contractual terms. Interest income from these financial assets is included in finance income. Any gain or loss arising from derecognition is recognised directly in profit or loss, while impairment losses are presented under a separate line item in the statement of profit or loss for the year.

◦ Financial assets at cost: These include equity investments in group companies, jointly controlled entities and associates, and other equity investments whose fair value cannot be estimated reliably.

They are measured at cost, which is equivalent to the fair value of the consideration given plus directly attributable transaction costs, net of accumulated impairment losses, if any. The asset's recoverable value is the higher of the asset's fair value less costs to sell and the present value of the estimated cash flows from the investment.

◦ Financial assets at fair value through equity: These are investments in equity instruments which the Company has opted to irrevocably designate into this category upon initial recognition.

They are measured at fair value and any gains or losses arising from changes in their fair value are recognised in equity until the financial asset is derecognised or written down for impairment, at which time the amount deferred in equity is reclassified to profit or loss. Dividends from these investments are recognised in the statement of profit or loss for the period.

The criteria used by the Company to measure fair value are disclosed in section l) below.

In the event of a non-monetary contribution consisting of a portfolio of securities delivered when subscribing for a capital increase undertaken by a subsidiary, if the securities contributed were classified in the former financial asset category called 'available-for-sale financial assets', the Company follows the Response to Consultation No. 1 published in the official journal of the ICAC (no. 77/2009), leaving any gains or losses arising from fair value changes as of the date of the nonmonetary contribution in equity. As stipulated in Recognition and Measurement Rule 9.2.4.3 of the General Accounting Plan, in the event of an investment that is newly classified as an investment in a subsidiary, joint venture or associate, if, prior to that reclassification, fair value changes had been recognised on that investment directly in equity, those gains or losses are left in equity until the investment is disposed of or derecognised, at which point they are reclassified to profit or loss.

◦ Financial assets at fair value through profit or loss: This category includes financial assets that do not qualify for inclusion in any of the other categories.

These instruments are initially recognised and subsequently measured at fair value and any changes in fair value and gains or losses on their disposal are recognised in profit or loss. They are initially measured at fair value, which, unless there is evidence to the contrary, is the transaction price, which is equivalent to the fair value of the consideration paid. Directly attributable transaction costs are recognised in profit or loss for the year.

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers substantially all the risks and rewards of ownership of the financial asset or it neither transfers nor retains substantially all the risks and rewards of ownership and it has not retained control of the transferred asset.

• Financial liabilities

The Company classifies all of its financial liabilities into the following category:

◦ Financial liabilities at amortised cost: In general, this category includes payables from trade transactions, which are financial liabilities arising on the purchase of goods and services in the course of the Company's trade transactions with deferred payment, and payables on non-trade transactions, which are financial liabilities that are not derivatives and have no commercial substance, but arise from loans or credit received by the Company. Payables falling due within one year for which there is no contractual interest rate expected to be settled in the short term are measured at their nominal amount. Borrowings are classified under current liabilities unless they mature more than 12 months after the reporting date, in which case they are classified under non-current liabilities.

Borrowings are measured initially at fair value. In the absence of evidence to the contrary, this is the transaction price, which is equivalent to the fair value of the consideration received net of attributable transaction costs. These sources of finance are subsequently measured at amortised cost using the effective interest method.

The Company derecognises a financial liability, or part of it, when it discharges the liability or is legally released from primary responsibility for the liability either by process of law or by the creditor.

f) Cash and cash equivalents

Cash and cash equivalents include cash on hand and demand deposits at financial institutions. This heading also includes other short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.

g) Asset impairment

The Company assesses the recoverability of its assets at the end of each reporting period and whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An asset is impaired when its carrying amount exceeds its recoverable amount. Impairment losses must be recognised immediately in profit or loss. An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount.

The recoverable amount of an asset is the higher of:

The fair value of an asset less costs to sell
The asset's value in use

Recoverable amounts are calculated on the base of estimated cash flows. Impairment is calculated for individual assets. Where it is not possible to estimate the fair value of an asset, the fair value of the cashgenerating unit (CGU) to which the asset belongs is determined. Any reversal of impairment is recognised in the statement of profit or loss.

The impairment tests conducted by the Company in 2024 did not indicate any impairment of its investment properties (note 6).

In the case of impaired financial assets at amortised cost, the impairment loss is the difference between the carrying amount of the financial asset and the present value of the estimated future cash flows, excluding future credit losses that have not been incurred, discounted at the asset's original effective interest rate. For financial assets with floating interest rates, the effective interest rate at the measurement date, in accordance with the contractual terms, is used.

Impairment losses, and reversals thereof when there is a reduction in loss that can be objectively related to a subsequent event, are recognised in profit or loss. The loss can only be reversed up to the limit of the amortised cost of the asset that would have been recorded had the impairment loss not been recognised.

In the case of equity investments in group companies and associates, the recoverable amount is determined as the higher of the asset's value in use or fair value less costs to sell and the present value of the estimated cash flows from the investment. Unless better evidence of the recoverable amount is available, impairment is based on the investee's equity, corrected for any unrealised gains existing at the measurement date.

h) Capital and reserves

The Company's share capital is represented by ordinary shares.

Interim dividends are deducted from equity for the year to which the dividend relates on the basis of the corresponding Board resolution. The final dividend is not deducted from equity until it is approved at the corresponding Annual General Meeting.

Own shares are measured at acquisition cost and presented as a deduction from equity. Any gain or loss arising on the purchase, sale, issuance or cancellation of own shares is recognised directly in equity.

i) Provisions
• Employee benefits
- Pension obligations

◦ The Company has defined contribution plans, meaning plans that define the benefit an employee will receive upon retirement as a function of one or more variables, such as age, fund performance, years of service or pay. A defined contribution plan is a pension plan under which the Company pays fixed contributions to a separate entity and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods.

◦ Other long-term employee benefits

These benefits include defined benefit plans other than pension plans, such as health insurance for serving and former Company employees. The expected costs of these benefits are recognised over the employees' employment term. These obligations are measured each year by independent qualified actuaries. The effects of changes in actuarial assumptions are recognised, net of tax, in reserves within equity in the year they arise, while past service cost is recognised in the statement of profit or loss.

Defined benefit liabilities recognised in the balance sheet reflect the present value of obligations at the reporting date, less the fair value at that date of plan assets and any past service cost not yet recognised. The Company recognises actuarial gains and losses in recognised income and expense for the year in which they arise.

Other long-term employee benefits also include long-term remuneration schemes and the Structural Management Plan (hereinafter, the Plan), which are measured each year.

• Other provisions

The Company recognises provisions to cover present legal or constructive obligations as a result of past events, so long as it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be reliably estimated. They are recognised when the liability or obligation arises. No provision is recognised for proceedings where the probability that the event will occur is less than 50% as the Company considers that the outcome of these proceedings will be favourable.

Provisions are measured at the best estimate of the expenditure required to settle the obligation using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the carrying amount of a provision due to the passage of time is recognised as interest expense.

j) Transactions in currencies other than the euro

Transactions in currencies other than the euro are recognised at the exchange rate prevailing at the transaction date. During the year, the differences arising as a result of movements between the exchange rate used for initial recognition purposes and that prevailing on the date of collection or payment are recognised in profit or loss.

Fixed-income securities and balances receivable and payable denominated in a currency other than the euro are translated at the closing exchange rate each year. Any resulting measurement differences are recognised as exchange gains or losses in the statement of profit or loss.

Financial derivative instruments and other instruments arranged in foreign currency to hedge the Company's exposure to exchange rate risk are accounting for as outlined in "Derivative financial instruments and hedging transactions" above.

k) Derivative financial instruments and hedging transactions

Derivative financial instruments are initially recognised at fair value on the purchase date (acquisition cost) and are subsequently remeasured to fair value at each reporting date. The treatment of the resulting gains or losses depends on whether the financial derivative has been designated as a hedging instrument and, if so, the nature of the hedged item.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

The Company formally documents the relationship between hedging instruments and the hedged assets or liabilities at the inception of the transaction, along with the risk management objective and strategy for undertaking the hedge. It also documents its evaluation, at inception and on an ongoing basis, of whether the derivative financial instruments used for hedging purposes are highly effective at offsetting the changes in the fair value or cash flows of the hedged items.

The fair values of the derivative financial instruments used to manage foreign exchange and interest rate risk are disclosed in note 11.

When a hedging instrument expires or is sold, or no longer meets the criteria for hedge accounting, any cumulative gain or loss that has been recognised in equity remains in equity and is reclassified to profit or loss as the changes in the cash flows of the hedged item are recognised in profit or loss. When a forecast transaction is no longer expected to occur, any related cumulative gain or loss recognised in equity is immediately reclassified to profit or loss.

l) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

Financial asset and liability fair value measurements are classified using a hierarchy articulated around the relevance of the inputs used to make the corresponding measurements. The hierarchy categorises the inputs used in valuation techniques into three levels:

Level 1: Fair value measurements based on quoted prices in active markets for identical instruments.
Level 2: Fair value measurements based on inputs that are observable for the asset or liability.
Level 3: Measurements based on inputs that are not underpinned by observable market data.

If there is no quoted price from an active market, the Company uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. More specifically, for the various financial derivative financial instruments not traded on organised markets, the Company estimates fair value using valuation techniques which include the use of recent arm's length transactions between knowledgeable, willing parties, reference to other instruments that are substantially the same, discounted cash flow analysis discounted using the market interest and exchange rates prevailing at the reporting date and options pricing models enhanced to reflect the issuer's specific circumstances.

m) Income and expenses

Revenue from contracts with customers is recognised as the Company satisfies its performance obligations.

Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised so as to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services.

Interest income is recognised using the effective interest method. Dividend income is recognised when the right to receive payment is established. The Company, in its capacity as the parent of the Redeia Group, applies the response provided by the ICAC to a consultation regarding the accounting treatment of income and expenses in the separate financial statements of a holding company and the measurement of revenue (Ref: 546/09) dated 23 July 2009. Specifically, it classifies dividends from equity investments in investees, interest on loans extended to those same investees and any gains on the disposal of those investments within revenue, unless they arise upon the disposal of a subsidiary, in which case, as likewise stipulated in that same resolution, it creates a line item within operating income to reflect the change in the fair value of financial instruments, impairment losses and disposal gains or losses.

Lastly, revenue also includes lease income and revenue from the provision of support services, as these form part of the Company's core activities.

n) Tax matters

Tax expense/(income) comprises current tax and deferred tax. Current and deferred tax is recognised as income or an expense and included in profit or loss for the period, except to the extent that the tax arises from (i) a transaction or event which is recognised, in the same or a different period, directly in equity or (ii) a business combination.

Current tax is the amount expected to be paid, using enacted tax rates, in respect of the current year, as well as any tax payable as a result of prior-year adjustments.

Income tax credit and other tax relief originating from transactions arising during the year are deducted from accrued tax expense unless there is uncertainty about their utilisation.

Deferred tax and tax expense are calculated and accounted for using the liability method considering temporary differences between the amounts recognised for financial reporting purposes and those used for tax purposes. The liability method consists of determining deferred tax assets and liabilities as a function of the differences between the carrying amount and tax bases of assets and liabilities, using the tax rates objectively expected to be prevailing when the assets and liabilities are realised and incurred, respectively.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the tax assets can be utilised.

The Company, as the parent of the Tax Group, recognises the total amount of consolidated income tax payable/(receivable) with a charge/(credit) to loans to/(borrowings from) group companies and associates.

o) Insurance

The Company has a number of insurance policies to cover the risks to which its activities expose it. The chief risks are potential damage to the Company's facilities and potential third-party claims arising in the course of its activities. The cost of the related insurance premiums is accrued in the statement of profit or loss. The income due from insurance companies as a result of claims is recognised in the statement of profit or loss in keeping with the revenue and expense matching principle.

p) Share-based payments

The Company has implemented share purchase plans whereby employees can receive Company shares as part of their annual pay packages. That remuneration is measured using the closing Company share price as of the date of delivery. Expenses incurred under these plans are recognised within employee benefits expense in the statement of profit or loss. All of the shares delivered to employees come from the Company's treasury stock.

q) Intragroup transactions

Transactions between group companies are recognised at the fair value of the consideration delivered or received. Any difference between fair value and the amount agreed is recognised in accordance with the underlying economic substance of the transaction.

5 Intangible assets and PP&E

5.1 Intangible assets

The reconciliation of the carrying amounts of the various items of intangible assets and the related accumulated amortisation at the beginning and end of 2024 and 2023 is as follows:

Thousands of euros	31 Dec. 2022	Additions	Transfers	31 Dec. 2023	Additions	Transfers	31 Dec. 2024
Cost
Software	11,189	–	12,038	23,227	–	11,834	35,061
Software in progress	7,386	7,939	(12,038)	3,287	11,412	(11,834)	2,865
Total cost	18,575	7,939	–	26,514	11,412	–	37,926
Accumulated amortisation
Software	(5,768)	(4,363)	–	(10,131)	(5,755)	–	(15,886)
Total accumulated amortisation	(5,768)	(4,363)	–	(10,131)	(5,755)	–	(15,886)
Carrying amount	12,807	3,576	–	16,383	5,657	–	22,040

The additions under software in progress in both years related to the development and purchase of corporate software programmes from third parties.

At 31 December 2024, the original cost of fully-amortised intangible assets still in use was 5,541 thousand euros (2023: 3,303 thousand euros).

In 2024, the Company capitalised 456 thousand euros of operating expenses directly related with internally generated intangible assets (2023: 331 thousand euros).

5.2 Property, plant and equipment

The reconciliation of the carrying amounts of the various items of property, plant and equipment and the related accumulated depreciation at the beginning and end of 2024 and 2023 is as follows:

Thousands of euros	31 Dec. 2022 Additions		Transfers	31 Dec. 2023	Additions	Transfers	31 Dec. 2024
Cost
Land and buildings	88,144	–	–	88,144	–	(568)	87,576
Other fixtures, machinery, tools, furniture and other PP&E	19,886	–	5,005	24,891	–	3,423	28,314
PP&E under construction and advances	6,298	4,509	(5,005)	5,802	8,260	(2,855)	11,207
Total cost	114,328	4,509	–	118,837	8,260	–	127,097
Accumulated depreciation
Buildings	(26,338)	(1,574)	–	(27,912)	(1,566)	–	(29,478)
Other fixtures, machinery, tools, furniture and other PP&E	(17,433)	(1,459)	–	(18,892)	(2,135)	–	(21,027)
Total accumulated depreciation	(43,771)	(3,033)	–	(46,804)	(3,701)	–	(50,505)
Carrying amount	70,557	1,476	–	72,033	4,559	–	76,592

Land and buildings relate to properties owned by the Company that are held for use in its main business activities, as detailed in note 1. Of the total, 15,222 thousand euros relates to land and 72,354 thousand euros, to buildings (2023: 15,222 thousand euros and 72,922 thousand euros, respectively).

The additions recognised under PP&E under construction and transfers in 2024 and 2023 related mainly to the purchase and assembly of equipment, and also the refurbishment of buildings owned by the Company.

At 31 December 2024, the original cost of fully-depreciated items of property plant and equipment still in use was 17,537 thousand euros (2023: 17,266 thousand euros), of which 14,823 thousand euros (2023: 14,683) related to other PP&E.

The Company did not capitalise any operating expenses related directly with self-constructed assets in either 2024 or 2023.

The Company has taken out insurance policies to cover the risks to which its property plant and equipment are exposed. These policies provide adequate coverage against the risks covered.

Spanish Law 16/2012 introduced a range of tax measures designed to consolidate Spain's public finances and shore up economic activity, including the possibility of asset restatements using the coefficients stipulated in the legislation itself, under which the Company revalued its property, plant and equipment and investment properties with a credit to an equity line item named revaluation reserves. As stipulated in an ICAC resolution dated 31 January 2013, the asset restatements, if availed of, had to be recognised in the financial statements for 2013. Under the scope of that law, the Company restated its property, plant and equipment as of 1 January 2013, paying a one-time tax of 5% of the amount of the revaluation.

The amount of the restatement, net of the one-time tax of 5%, was credited to reserves (note 14). The assets whose carrying amount was restated were land and buildings, in the amount of 6,304 thousand euros, and other PP&E, in the amount of 60 thousand euros. The restatements did not affect the amount of accumulated depreciation as of the restatement date.

The net increase in value resulting from this revaluation exercise is being depreciated during the remaining years of useful life of the revalued assets. The asset restatements implied the recognition of an additional 176 thousand euros of depreciation charges in both 2024 and 2023.

6 Investment properties

The reconciliation of the carrying amounts of the Company's investment properties and the related accumulated depreciation and impairment in 2024 and 2023 is as follows:

Thousands of euros	31 Dec. 2022		Additions Derecognitions	31 Dec. 2023	Additions	Derecognitions	31 Dec. 2024
Cost
Land	558	—	—	558	—	—	558
Buildings	1,679	—	(1,679)	—	—	—	—
Total cost	2,237	—	(1,679)	558	—	—	558
Accumulated depreciation
Buildings	(534)	(25)	559	—	—	—	—
Total accumulated depreciation	(534)	(25)	559	—	—	—	—
Carrying amount	1,703	(25)	(1,120)	558	—	—	558

There were no movements under investment properties in 2024. In 2023 the Company derecognised one property following the sale of a premises in Valencia (note 20-d).

On the basis of market appraisals at year-end 2024 and 2023, the Company concluded that its investment properties were not impaired, as their recoverable amounts remained above their carrying amounts.

The market value of the Company's investment properties, appraised by an independent expert, was approximately 1.4 million euros at 31 December 2024 (2023: 1.2 million euros). These properties did not generate significant income or operating expenses in either year.

7 Operating leases

The Company leases certain assets from group companies. Specifically, it leases the following assets under operating leases:

Thousands of euros	31 Dec. 2024	31 Dec. 2023
Cost
Land and buildings	85,790	86,358
Other fixtures, machinery, tools, furniture and other PP&E	28,314	24,891
Total cost	114,104	111,249
Accumulated depreciation
Buildings	(29,478)	(27,912)
Other fixtures, machinery, tools, furniture and other PP&E	(21,027)	(18,892)
Total accumulated depreciation	(50,505)	(46,804)
Carrying amount	63,599	64,445

The Company has lease agreements with certain group companies - Red Eléctrica de España, S.A.U., Redeia Infraestructuras de Telecomunicación, S.A., Red Eléctrica Infraestructuras en Canarias, S.A.U., Elewit S.A.U. and Hispasat, S.A. - under which it leases them space within the Company's properties; these leases are annual, extendable leases and are classified as operating leases.

They are rolled over periodically and in 2024 generated 11,276 thousand euros of income (2023: 10,986 thousand euros), which is recognised under provision of services within revenue in the accompanying statement of profit or loss (note 20-a). Of that total, approximately 86% came from Red Eléctrica de España, S.A.U. and 14%, from the other group companies in both years.

8 Investments in group companies and associates

None of the group companies in which the Company has investments was publicly listed at either year-end. The reconciliation of the Company's equity investments in these companies at the beginning and end of 2024 and 2023:

Thousands of euros	31 Dec. 2022	Additions and capital increases	Derecognition / Impairment	31 Dec. 2023	Additions and capital increases	Derecognition / Impairment	31 Dec. 2024
Equity instruments	2,848,915	–	–	2,848,915	1,000,000	(143,455)	3,705,460

The main transactions completed in 2024:

In December 2024, Red Eléctrica de España, S.A.U. increased its capital by 1,000 million euros by issuing one share with a par value of 2 euros and a share premium of 1,000 million euros. That share was purchased by the Company and paid for by means of the partial forgiveness of the loan described in note 21.
Elsewhere, on 31 January 2025, the Company, through its subsidiary, Redeia Sistemas de Telecomunicaciones S.A.U., agreed to sell Indra Sistemas S.A. its 89.68% interest in the share capital of Hispasat for 725 million euros.

The sale is expected to close in 2025 as it is subject to delivery of certain suspensive conditions, including approval by Spain's Council of Ministers, the anti-trust authorities and several regulators in both Spain and other jurisdictions; it is also subject to approval at Indra's Annual General Meeting and to the execution of certain agreements so that Indra can increase its interest and consolidate Hisdesat, a government satellite services operator in the areas of defence, security, intelligence and foreign affairs, for accounting purposes.

In light of that transaction, the Company has recognised an impairment loss of 143 million euros against its equity investment in Redeia Sistemas de Telecomunicaciones S.A.U. in order to restate that investment to its fair value.

The Company did not complete any corporate transactions in 2023.

The breakdown of the Company's investments in group companies and associates at year-end 2024:

Redeia Corporación, S.A.

Breakdown of equity investments at 31 December 2024

Company
Registered office

- Core business		Percentage interest (1)	Carrying amount at	Equity of the investee (2)				Profit for	Operating
Thousands of euros	Direct	Indirect	31 Dec. 2024	Share capital paid in	Share premium	Reserves	Other items	the year (3)	profit/(loss) (3)
Red Eléctrica de España, S.A.U. (Red Eléctrica)
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).	100%	—	2,529,326	800,006	1,569,319	1,594,747	609,413	397,995	581,735
- Transmission and operation of the Spanish electricity system and management of the transmission network.
Red Eléctrica Internacional, S.A.U. (Redinter)
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).	100%	—	738,669	186,037	552,632	78,374	(9,408)	45,846	50,012
- Acquisition and holding of international equity investments. Provision of advisory, engineering and construction services. Performance of electricity activities outside the Spanish electricity system.
Redeia Infraestructuras de Telecomunicación, S.A.
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).	51%	—	15,300	30,000	—	6,171	(3,223)	58,971	83,467
- Provision of advisory, engineering and construction services.
Red Eléctrica Infraestructuras en Canarias, S.A.U.
- Calle Juan de Quesada, 9. Las Palmas (Gran Canary Island) (Spain).	100%	—	5,000	5,000	—	718	—	625	607
- Management of the construction of energy storage facilities and of the water cycle.
Redeia Financiaciones, S.L.U.
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).	100%	—	2,000	18	1,982	214	—	142	12,812
- Financing activities.
Red Eléctrica Financiaciones, S.A.U.
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).	100%	—	60	60	—	20,569	—	3,067	52,941
- Financing activities.
Redeia Sistemas de Telecomunicaciones, S.A.U. (4)
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).	100%	—	405,605	549,060	—	8,858	—	(152,312)	(141,099)
- Acquisition, holding, management and administration of Spanish and foreign equity securities.
Elewit, S.A.U. (*)
- Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain).	100%	—	5,000	1,000	4,000	51	(1,083)	655	1,193
- Activities geared towards driving and accelerating technological innovation.
Redeia Reaseguros, S.A.
- 26, Rue Louvigny. (Luxembourg)	100%	—	4,500	4,500	—	73,794	—	13,102	9,855
- Reinsurance activities. Incorporated in 2010 in Luxembourg in order to reinsure the risks of the Group companies, thereby guaranteeing better access to the international reinsurance markets.

(1) Equivalent to voting rights.

(2) According to audited financial statements after uniformity adjustments to align them with the accounting criteria used by the Company and measured in euros using closing exchange rates.

(3) According to audited financial statements after uniformity adjustments to align them with the accounting criteria used by the Company and measured in euros using average exchange rates. Profit for the year and operating profit from continuing operations. (4) Parent of the Hispasat, S.A. subgroup

(*) The annual financial statements of this company will be authorised for issue later by the Board of Directors of Redeia Corporación, S.A., so that the figures presented have yet to be audited.

Redeia Corporación, S.A.

Breakdown of equity investments at 31 December 2023

Company
Registered office
Core business Percentage interest (1) Carrying amount at 31 Dec. 2023 Equity of the investee (2) Profit for the year (3) Operating profit/(loss) (3) Thousands of euros Direct Indirect Share capital paid in Share premium Reserves Other items Red Eléctrica de España, S.A.U. (Red Eléctrica) - Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 100% — 1,529,326 800,006 569,319 1,438,024 305,529 545,784 768,453 - Transmission and operation of the Spanish electricity system and management of the transmission network. Red Eléctrica Internacional, S.A.U. (Redinter) - Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 100% — 738,669 186,037 552,632 50,045 (7,406) 28,329 33,064 - Acquisition and holding of international equity investments. Provision of advisory, engineering and construction services. Performance of electricity activities outside the Spanish electricity system. Redeia Infraestructuras de Telecomunicación, S.A. - Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 51% — 15,300 30,000 — 13,663 (3,328) 58,883 85,198 - Provision of advisory, engineering and construction services. Red Eléctrica Infraestructuras en Canarias, S.A.U. - Calle Juan de Quesada, 9. Las Palmas (Gran Canary Island) (Spain). 100% — 5,000 5,000 — 204 — 514 513 - Management of the construction of energy storage facilities and of the water cycle. Redeia Financiaciones, S.L.U. - Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 100% — 2,000 18 1,982 119 — 95 12,474 - Financing activities. Red Eléctrica Financiaciones, S.A.U. - Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 100% — 60 60 — 17,849 — 2,720 40,398 - Financing activities. Redeia Sistemas de Telecomunicaciones, S.A.U. (4) - Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 100% — 549,060 549,060 — (6,514) — 15,372 25,652 - Acquisition, holding, management and administration of Spanish and foreign equity securities. Elewit, S.A.U. - Paseo Conde de los Gaitanes, 177. Alcobendas. Madrid. (Spain). 100% — 5,000 1,000 4,000 89 (1,254) 191 470 - Activities geared towards driving and accelerating technological innovation. Redeia Reaseguros, S.A. - 26, Rue Louvigny. (Luxembourg) 100% — 4,500 4,500 — 61,906 — 12,434 12,040 - Reinsurance activities. Incorporated in 2010 in Luxembourg in order to reinsure the risks of the Group companies, thereby guaranteeing better access to the international reinsurance markets.

(1) Equivalent to voting rights.

(2) According to audited financial statements after uniformity adjustments to align them with the accounting criteria used by the Company and measured in euros using closing exchange rates.

The Company holds direct interests in the following companies:

Red Eléctrica de España, the Spanish grid's transmission and system operator (TSO), which is bound by Spain's Electricity Act (Law 24/2013) and subsequent legal provisions regarding the TSO. The Company is not allowed to sell shares in this company, which carries out activities regulated in Spain, to third parties.
Through its subsidiary Redeia Sistemas de Telecomunicaciones, it holds an 89.68% equity interest in Hispasat, S.A., whose core business is the sale and provision of satellite telecommunications services.
Redeia Infraestructuras de Telecomunicación, which provides telecommunications services to third parties in Spain, mainly through the lease of backbone dark optic fibre.
Red Eléctrica Internacional, which carries out the Group's international activities, specifically in Peru, Chile and Brazil.
Red Eléctrica Infraestructuras en Canarias, the company which manages the construction of energy storage facilities and the water cycle.
Redeia Financiaciones and Red Eléctrica Financiaciones, the Group companies that perform its financing activities.
Redeia Reaseguros, the company devoted to reinsurance activities.
Elewit, the subsidiary through which technological innovation is channelled.

In 2024, the Company received dividends from its investees (note 20-a), specifically, 266,882 thousand euros from Red Eléctrica (2023: 388,123 thousand euros), 33,833 thousand euros from Redeia Infraestructuras de Telecomunicación (2023: 26,928 thousand euros) and 545 thousand euros from Redeia Reaseguros.

The Company has tested its investments in these companies for impairment. It used projected cash flow analysis to perform those tests.

Redinter's investments in international companies were tested for impairment, without indicating the need to recognise any material impairment losses.

The key assumptions underpinning the businesses' projections used to calculate value in use, which are based on business forecasts and past experience, are:

Regulated remuneration: estimated based on the mechanisms stipulated in international regulations for updating these amounts.
Capital expenditure: the best information available regarding plans to invest in assets and infrastructure maintenance over the projection time horizon.
Operating and maintenance expenses: projected in line with the growth forecasts derived from the capital expenditure plan.
Other costs: projected on the basis of sector knowledge, past experience and in line with the outlook derived from the capital expenditure plan.

To calculate the present value of the projected cash flows, they were discounted using an after-tax rate that reflects the weighted average cost of capital (WACC) of the business in question and country risk.

This exercise showed that the recoverable amount of Redinter's international investments, including the loan to Transmisora Eléctrica del Norte S.A., is above their carrying amount.

9 Financial risk management policy

The Company's financial risk management policy establishes principles and guidelines to ensure that any significant risks that could compromise its objectives and activities are identified, analysed, assessed, managed and controlled, and that these processes are carried out systematically, framed by uniform criteria.

The main guidelines set down in those principles can be summed up as follows:

Risk management should be fundamentally proactive and directed towards the medium and long term, taking into account possible scenarios in an increasingly global environment.
Risk should generally be managed in accordance with consistent criteria, distinguishing between the importance of the risk (probability/impact) and the investment and resources needed to mitigate it.
Financial risk management should be designed to avoid undesirable movements in the Company's fundamental value, rather than generating extraordinary gains.

The Company's finance management is responsible for managing financial risk, ensuring consistency with the stated strategy and coordinated risk management, identifying the main financial risks and defining the initiatives to be taken, based on different financial scenarios.

The methodology for identifying, measuring, monitoring and controlling financial risks, as well as the performance indicators and measurement and control tools specific to each risk, are set down in the Group's Comprehensive Risk Management System and are formally documented in the Comprehensive Risk Management Policy, the General Management Procedure and the internal risk control system.

The financial risks to which the Company is exposed are:

a) Market risk

The risk of movements in the financial markets with respect to prices, interest rates, exchange rates, lending terms and conditions and other variables that could affect the Company's borrowing costs in the short, medium or long term.

These risks are managed by borrowing in specific currencies, at specific maturities and opting for specific interest rate formulas, and by using financial hedging instruments that modify the characteristics of the Company's financial structure. Market risk specifically includes:

• Interest rate risk

At both year-ends, the Company's was mainly exposed to interest rate risk through its statement of profit or loss.

Movements in interest rates affect both the fair value of the assets and liabilities that carry interest at a fixed rate and the future cash flows of assets and liabilities benchmarked to floating rates. A movement of 0.10% in either direction in interest rates in 2024 would have increased or decreased earnings by 1,078 thousand euros (2023: 922 thousand euros).

The Company's exposure to interest rate risk at year-end 2024, via its equity, as a result of potential changes in the fair value of its derivative financial instruments, is not material. A movement of 0.10% in either direction in interest rates in 2024 would have increased or decreased equity by 42 thousand euros.

• Currency risk

Management of this financial risk addresses transaction risk derived from having to collect or pay cash in the future in a currency other than the euro.

The Company has arranged cross currency swaps to eliminate the currency risk derived from the loans extended to Red Eléctrica Chile, a Group company. These instruments swap floating-rate debt in euros for fixed-rate debt in dollars, so hedging the collection of US dollars in the future.

• Credit and liquidity risk

Credit risk is the Company's biggest financial risk as most of its borrowings are arranged by other Group companies, which assume the related market and liquidity risk. Credit risk is managed through policies stipulating requirements regarding counterparty creditworthiness and the provision of additional guarantees when necessary. The Company believes that its receivables are not subject to any recoverability risk.

Nevertheless, the Company's liquidity position at year-end 2024 is shored up by the availability of undrawn credit lines in the amount of 836,686 thousand euros and the existence of 52 million euros of readily available cash.

Moreover, there are no restrictions on the use of the cash balances presented in the Company's balance sheet.

10 Financial instrument analysis

a) Analysis by category

The carrying amounts of the Company's financial instruments, other than its equity investments in group companies, by category at 31 December 2024 and 2023:

• Financial assets

	Financial instrument categories at 31 December 2024
Thousands of euros	Financial assets at fair value through profit or loss	Financial assets at amortised cost	Derivatives	Total
Loans to third parties	–	523	–	523
Loans to group companies and associates	–	650,041	–	650,041
Equity instruments with special characteristics	1,543	–	–	1,543
Derivative financial instruments	–	–	440	440
Other financial assets	–	135	–	135
Non-current	1,543	650,699	440	652,682
Receivable from group companies and associates: trade receivables and loans	–	473,635	–	473,635
Other financial assets	–	964	–	964
Trade and other receivables	–	174	–	174
Current	–	474,773	–	474,773
Total	1,543	1,125,472	440	1,127,455

	Financial instrument categories at 31 December 2023
Thousands of euros	Financial assets at fair value through profit or loss	Financial assets at amortised cost	Derivatives	Total
Loans to third parties	–	706	–	706
Loans to group companies and associates	–	610,526	–	610,526
Equity instruments with special characteristics	2,825	–	–	2,825
Derivative financial instruments	–	–	2,168	2,168
Other financial assets	–	22	–	22
Non-current	2,825	611,254	2,168	616,247
Receivable from group companies and associates: trade receivables and loans	–	853,966	–	853,966
Other financial assets	–	1,029	–	1,029
Trade and other receivables	–	345	–	345
Current	–	855,340	–	855,340
Total	2,825	1,466,594	2,168	1,471,587

• Financial liabilities

	Financial instrument categories at 31 December 2024
Thousands of euros	Financial liabilities at amortised cost	Derivatives	Total
Notes and other marketable securities	494,716	–	494,716
Bank borrowings	208,587	–	208,587
Borrowings from group companies and associates	41,594	–	41,594
Derivative financial instruments	–	6,401	6,401
Other financial liabilities	16	–	16
Non-current	744,913	6,401	751,314
Notes and other marketable securities	433,618	–	433,618
Bank borrowings	5,766	–	5,766
Payable to group companies and associates: trade payables and borrowings	258,378	–	258,378
Current borrowings	126,348	–	126,348
Trade and other payables	23,235	–	23,235
Current	847,345	–	847,345
Total	1,592,258	6,401	1,598,659

	Financial instrument categories at 31 December 2023
Thousands of euros	Financial liabilities at amortised cost	Derivatives	Total
Notes and other marketable securities	399,299	–	399,299
Bank borrowings	138,785	–	138,785
Borrowings from group companies and associates	39,622	–	39,622
Derivative financial instruments	–	–	–
Other financial liabilities	16	–	16
Non-current	577,722	–	577,722
Notes and other marketable securities	25,630	–	25,630
Bank borrowings	6,794	–	6,794
Payable to group companies and associates: trade payables and borrowings	232,803	–	232,803
Current borrowings	163,490	–	163,490
Trade and other payables	22,653	–	22,653
Current	451,370	–	451,370
Total	1,029,092	–	1,029,092

b) Analysis by maturity

• Financial assets

	31 Dec. 2024
	Maturity of financial assets
Thousands of euros	2025	2026	2027	2028	2029	Beyond	Total
Loans to third parties	–	–	–	–	–	523	523
Loans to group companies and associates	473,635	218,236	–	120,305	311,500	–	1,123,676
Equity instruments with special characteristics	–	–	–	–	–	1,543	1,543
Other financial assets	964	–	–	–	–	135	1,099
Trade and other receivables	174	–	–	–	–	–	174
Total	474,773	218,236	–	120,305	311,500	2,201	1,127,015

	31 Dec. 2023
	Maturity of financial assets
Thousands of euros	2024	2025	2026	2027	2028	Beyond	Total
Loans to third parties	–	–	–	–	–	706	706
Loans to group companies and associates	853,966	–	192,084	–	106,942	311,500	1,464,492
Equity instruments with special characteristics	–	–	–	–	–	2,825	2,825
Other financial assets	1,029	–	–	–	–	22	1,051
Trade and other receivables	345	–	–	–	–	–	345
Total	855,340	–	192,084	–	106,942	315,053	1,469,419

• Financial liabilities

	31 Dec. 2024
	Maturity of financial liabilities
Thousands of euros	2025	2026	2027	2028	2029	Beyond	Valuation adjustments	Total
Notes and other marketable securities	433,774	–	–	–	–	500,000	(5,440)	928,334
Bank borrowings in euros	784	–	–	–	50,000	–	–	50,784
Bank borrowings in foreign currency	4,982	156,519	2,124	–	–	–	(56)	163,569
Payable to group companies and associates: trade payables and borrowings	258,378	–	–	–	–	41,594	–	299,972
Trade and other payables	149,583	–	–	–	–	–	–	149,583
Other financial liabilities	–	–	–	–	–	16	–	16
Total	847,501	156,519	2,124	–	50,000	541,610	(5,496)	1,592,258

	31 Dec. 2023
		Maturity of financial liabilities
Thousands of euros	2024	2025	2026	2027	2028	Beyond	Valuation adjustments	Total
Notes and other marketable securities	25,630	400,000	–	–	–	–	(701)	424,929
Bank borrowings in euros	21	–	–	–	–	–	–	21
Bank borrowings in foreign currency	6,773	–	138,923	–	–	–	(138)	145,558
Payable to group companies and associates: trade payables and borrowings	232,803	–	–	–	–	39,622	–	272,425
Trade and other payables	186,143	–	–	–	–	–	–	186,143
Other financial liabilities	–	–	–	–	–	16	–	16
Total	451,370	400,000	138,923	–	–	39,638	(839)	1,029,092

The maturity analysis of the Company's derivative financial instruments is provided in note 11.

11 Derivative financial instruments

Framed by its financial risk management policy, the Company has arranged cross currency swaps as hedges; these instruments swap floating-rate debt in euros for fixed-rate debt in US dollars, so hedging its currency exposure via the collection of US dollars in the future. It also arranges interest rate swaps which allow it exchange a floating rate of interest for a fixed rate. The Company has not formally designated its cross currency swaps as a hedge; rather, the gains and losses derived from changes in the rate of exchange of the derivative financial instruments are offset in its statement of profit or loss by the changes arising in the longterm loan extended to the Group company, Red Eléctrica Chile (note 21). In contrast, that hedging relationship has been formally documented for the purposes of the Group's consolidated financial statements, qualifying as a hedge of a net investment in a foreign operation in dollars.

In the case of the SOFR interest rate hedge, a hedging relationship has been designed with the Company's borrowings in dollars, exchanging a portion thereof for a fixed rate.

The Company layers in adjustments for credit risk in order to reflect own credit risk and counterparty credit risk in the estimated fair value of its derivative financial instruments, calculated using generally accepted valuation models.

To determine the credit risk adjustment, it uses a technique based on the calculation, using simulations, of the total expected exposure (which therefore includes current and potential exposure), adjusted for the probability of default over time and the loss given default assigned to the Company and each of its counterparties.

The total expected exposure of derivative financial instruments is obtained using observable market inputs such as yield, currency and volatility curves, factoring in market conditions at the measurement date.

The inputs used to determine own credit risk and counterparty credit risk (which in turn determine the probability of default) are mainly based on own credit spreads and the spreads of comparable companies currently traded on the market (CDS curves, yields on bond issues).

Also, to adjust fair value for credit risk, the Company factors in credit enhancements from guarantees and collateral when determining the loss given default rate to apply to each position. Loss given default is considered constant in time. If there are no credit enhancements from guarantees or collateral, a minimum recovery rate of 40% is modelled.

The Company uses mid-market prices taken from external sources of information widely used in the financial markets as observable inputs.

The breakdown of the Company's derivative financial instruments by nature at year-end:

	31 Dec. 2024		Non-current		Current
Thousands of euros	Hedged principal	Maturity date	Assets	Liabilities	Assets	Liabilities
Foreign exchange derivatives - Hedge of a net investment (at the Group level):
Cross currency swap	USD 150,000 thousand	Until 2026		6,401	–	–
Interest rate hedge - Cash flow hedge:
SOFR interest rate swap	USD 50,000 thousand	Until 2026	440	–	–	–

	31 Dec. 2023		Non-current		Current
Thousands of euros	Hedged principal	Maturity date	Assets	Liabilities	Assets	Liabilities
Foreign exchange derivatives - Hedge of a net investment (at the Group level):
Cross currency swap	USD 150,000 thousand	Until 2026	2,168	–	–	–

The breakdown of these derivative financial instruments by maturity date:

	31 Dec. 2024
Thousands of euros	Hedged principal	Maturity date	2025	2026	2027	2028	2029 and beyond	Total
Foreign exchange derivatives - Hedge of a net investment (at the Group level):
Cross currency swap	USD 150 million	Until 2026	–	(6,401)	–	–	–	(6,401)
Interest rate hedge
- Cash flow hedge:
SOFR interest rate swap	USD 50,000 thousand	Until 2026	–	440	–	–	–	440

	31 Dec. 2023
Thousands of euros	Hedged principal	Maturity date	2024	2025	2026	2027	2028 and beyond	Total
Foreign exchange derivatives
- Hedge of a net investment (at the Group level):
Cross currency swap	USD 150 million	Until 2026	–	–	2,168	–	–	2,168

The fair value gain recognised in the statement of profit or loss in 2024 was 68 thousand euros (2023: fair value loss of 510 thousand euros), while finance costs in 2024 totalled 2,856 thousand euros (2023: 2,812 thousand euros). The impact on the Company's equity in 2024 was 330 thousand euros.

12 Current and non-current financial assets

The breakdown of the Company's financial assets at 31 December 2024 and 2023:

Thousands of euros	31 Dec. 2024	31 Dec. 2023
Equity instruments	1,543	2,825
Loans to third parties	523	706
Derivative financial instruments	440	2,168
Other financial assets	135	22
Total non-current financial assets	2,641	5,721

Thousands of euros	31 Dec. 2024	31 Dec. 2023
Other financial assets	964	1,029
Total current financial assets	964	1,029

Equity instruments in the table above present investments in economic interest groupings (EIGs) which lease assets that are managed by another company that is unrelated to the Company, which retains substantially all the risks and rewards associated with the assets, with the Company simply availing itself of the tax incentives provided for in Spanish legislation. The investments were carried at 1,543 thousand euros at yearend (2023: 2,825 thousand euros). The Company recognises the difference between the tax losses that are generated and declared by the economic interest groupings and its investments in them as finance income (notes 17 and 20-c).

These investments are classified within Level 2 for fair value hierarchy purposes.

At both year-ends, loans to third parties reflect long-term loans extended by the Company to its staff. The loans accrue interest at Euribor plus a spread, as stipulated in the corresponding collective bargaining agreement.

At year-end 2024, the balance recognised under non-current derivative financial instruments reflects their fair value. as outlined, along with their breakdown and maturity profile, in note 11.

Other current financial assets at 31 December 2024 and 2023 related primarily to the interest accrued and outstanding on those derivative financial instruments.

13 Trade and other receivables

The breakdown of this heading at year-end 2024 and 2023:

Thousands of euros	31 Dec. 2024	31 Dec. 2023
Trade receivables from group companies and associates	37,893	37,070
Other receivables	25	171
Payable to employees	149	174
Current tax assets	470	205,530
Other taxes receivable	2,448	1,263
Total	40,985	244,208

Trade receivables from group companies and associates at both year-ends reflect the balances due collection in relation to the Company's day-to-day activities managing its Group (note 1).

Other receivables at both reporting dates include balances due under property leases and other operating income from services provided to third parties.

Receivable from employees at both year-ends mainly reflects the short-term loans extended by the Company to its staff (note 12).

Current tax assets at both dates reflect the amount of income tax receivable that the Company has recognised in its capacity as parent of the Tax Group.

Lastly, at 31 December 2024 and 2023 other taxes receivable reflect value-added tax (VAT) receivable by the Company.

14 Equity

a) Capital risk management

The Group's capital management objectives are to safeguard its ability to continue as a going concern in order to generate returns for its shareholders and maintain an optimum capital structure to reduce the cost of capital.

To maintain and adjust the capital structure, the Parent can adjust the amount of dividends payable to shareholders, reimburse capital or issue new shares.

Given the Company's activity and its investees' ability to generate cash, capital risk is not considered material.

b) Capital and reserves

• Share capital

At 31 December 2024 and 2023, the Company's share capital comprised 541,080,000 shares with a unit par value of 0.50 euros represented by book entries, all subscribed and paid in, carrying the same voting and dividend rights (notwithstanding the limits outlined in the paragraph below), with a unit par value of 0.50 euros. They are admitted to trading on the four Spanish stock exchanges and are traded through the continuous market (SIBE for its acronym in Spanish).

The Company is subject to the shareholder limitations stipulated in additional provision twenty-three of Spanish Law 54/1997 of 27 November 1997 and article 30 of the Electricity Sector Act (Law 24/2023 of 26 December 2013).

Specifically, any individual or entity may hold shares in the Parent, provided that the sum of their direct or indirect interests in its share capital does not exceed 5% and their voting rights do not surpass 3% of the total. These share may not be syndicated for any purpose. Voting rights in the Company are limited to 1% in the case of entities that carry out activities in the electricity sector, and individuals and entities that hold direct or indirect interests exceeding 5% of the share capital of such companies, notwithstanding the limits applicable

to generators and agents under article 30 of the Electricity Sector Act. The above limits on shareholdings in the Parent do not apply to the state industrial holding company, SEPI for its acronym in Spanish, which must maintain a shareholding of at least 10%. At 31 December 2024 and 2023, SEPI held 20% of the Company's share capital.

• Reserves

This heading includes:

◦ Legal reserve

Spanish companies must transfer 10% of profit for the year to a legal reserve until this reserve is equivalent to at least 20% of share capital. This reserve cannot be distributed to shareholders until that threshold is met and may only be used to offset losses, provided no other reserves are available. Under certain conditions, this reserve may also be used to increase share capital. At 31 December 2024 and 2023, the legal reserve was equal to 20% of share capital (54,199 thousand euros).

◦ Revaluation reserve (Law 16/2012 of 27 December 2012).

As allowed by Law 16/2012, introducing a range of tax measures designed to consolidate Spain's public finances and shore up economic activity, the Company availed itself of the possibility of restating its property, plant and equipment. The revaluation reserve amounts to 6,042 thousand euros, net of the one-time tax of 5% on the revaluation gain. The revaluation reserve balance did not change in 2024.

That reserve can be used to offset losses or increase capital ever since the three-year tax inspection prescription period (counting from presentation of the 2012 return) elapsed. Ten years after that same date it will qualify as an unrestricted reserve. However, this balance may only be distributed, directly or indirectly, when the restated assets have been fully depreciated, sold or derecognised.

◦ Other reserves

This line item mainly includes voluntary reserves and reserves derived from the first-time application of the Spanish General Accounting Plan in the amounts of 2,089,240 and 19,895 thousand euros, respectively, at 31 December 2024 (2023: 2,179,965 and 19,895 thousand euros, respectively). Both reserve accounts are freely distributable.

At both reporting dates, this heading also includes reserves set aside under legal requirements in the amount of 264,547 thousand euros, mainly including the asset revaluation reserve generated at the Company in 1996 in the amount of 247,022 thousand euros. This reserve can be used, without becoming taxable, to offset losses, increase capital or, 10 years after its creation and once the revalued assets have been fully depreciated, as unrestricted reserves. However, this balance may only be distributed, directly or indirectly, when the restated assets have been fully depreciated, sold or derecognised.

The spin-off in 2015 of the telecommunications business line from Red Eléctrica Internacional for transfer to Redeia Infraestructuras de Telecomunicación generated a reserve in the amount of 74,407 thousand euros at the difference between the value of the net assets spun off to that Group company, which was 74,417 thousand euros, and the amount at which the Company carried its investment in that same business through Red Eléctrica Internacional. This reserve balance did not change in 2024.

In 2024, the amount of reserves was reduced by the coupons accrued on other equity instruments issued in a total amount of 17,345 thousand euros, net of the related tax effect (refer to other equity instruments below and note 16). Those equity instruments were issued in 2023 and the cost that year, net of the related tax effect, was 30,062 thousand euros.

Reserves also include the capitalisation reserve, in the amount of 74,818 thousand euros at 31 December 2024 and 2023, originated, with a charge against earnings, in 2016, 2017, 2018, 2020, 2021 and 2022. The capitalisation reserves corresponding to 2015, 2019 and 2023 were recorded at Red Eléctrica de España S.A.U. The capitalisation reserve endowment for 2024 will also be made at Red Eléctrica de España, S.A.U., a subsidiary of the same Tax Group, in keeping with article 62.1 d) of Law 27/2014. This reserve will be restricted for three years. Associated with this reserve, each Group company in the Tax Group has made the corresponding adjustments to their annual income tax.

• Own shares

At 31 December 2024, the Company held own shares representing 0.12% of its share capital; specifically, it held 671,942 shares with an aggregate par value of 336 thousand euros, which it acquired at an average price of 17.53 euros per share. At 31 December 2023, own shares represented 0.21% of its share capital; specifically, 1,112,017 shares with an aggregate par value of 556 thousand euros, acquired at an average price of 17.53 euros per share (note 28).

These shares are recognised as a reduction in equity and were carried at 11,780 thousand euros at 31 December 2024 (year-end 2023: 19,496 thousand euros).

The Company is compliant with all of its obligations under article 509 of the Corporate Enterprises Act which stipulates that, other than in the exceptional cases itemised in company law, the par value of any own shares acquired by listed companies, plus those already held directly or indirectly by the parent and its subsidiaries, may not exceed 10% of share capital. The subsidiaries do not hold any own shares or any Company shares.

• Profit for the year

The Company's profit amounted to 190,940 thousand euros in 2024 (2023: 450,428 thousand euros).

• Interim dividend and motion for the distribution of dividends

The interim dividend approved by the Board of Directors in 2024 has been recognised by reducing equity by 108,082 thousand euros at 31 December 2024 (147,249 thousand euros at year-end 2023).

On 29 October 2024, the Board of Directors agreed to pay an interim dividend from 2024 earnings in the amount of 0.20 euros per share (before withholding tax), payable on 7 January 2025.

The cash flow forecast for the period elapsing between 30 September 2024 and 7 January 2025 showed the existence of sufficient liquidity to substantiate its distribution. Moreover, the amount to be distributed did not exceed the profit generated by the Company since its last year-end, net of the estimated income tax payable on those earnings, as required under article 277 of the consolidated text of the Corporate Enterprises Act.

As required in article 277 a) of the Corporate Enterprises Act, the Board authorised the issuance of the following liquidity statement:

Liquidity statement of Redeia Corporación, S.A.	Thousands of euros
Funds available at 30 September 2024:
Undrawn non-current loans	689,908
Undrawn current loans	25,000
Short-term financial investments and cash	50,715
Forecast inflows:
Operating transactions	43,093
Financing transactions	143,136
Forecast outflows:
Operating transactions	(107,572)
Financing transactions	(459)
Forecast fund availability at 7 January 2025:	843,821

The cash flow forecasts as of the date of the resolution did not - and do not - point to any restrictions on the availability of funds. In addition, given the Company's ability to generate cash and its undrawn credit facilities, it expected to have sufficient liquidity during a period of one year from declaration of the interim dividend.

Lastly, as shown in the financial statements and as contemplated at the time of the declaration, the profit generated in 2024 was sufficient to permit the interim dividend payment.

As per the proposal for the appropriation of the Company's profit for the year (note 3), the directors are planning to submit a motion at the upcoming Annual General Meeting for the distribution of a final dividend, which, together with the interim dividend, will imply a total distribution of 432,730 thousand euros, and a total dividend for the year of 0.80 euros per share, the final dividend calculated considering all shares.

• Other equity instruments

The Company issued subordinated perpetual notes in 2023. The securities were structured into a single tranche of 500 million euros and qualify as green financing. The par value of each security was 100 thousand euros and they were issued at a price of 99.67% of par. They carry a coupon of 4.625%.

Given that the repayment of the principal and payment of the coupon are entirely at the discretion of the Company, these subordinated notes qualify as an equity instrument and are presented within other equity instruments on the balance sheets at 31 December 2024 and 2023 and in the statements of total changes in equity for the years then ended.

c) Valuation adjustments

At both reporting dates, this heading primarily reflects the fair value gains on the Company's investment in Redes Energéticas Nacionais, SGPS, S.A. (REN) until 2015, when it transferred the investment, by way of a non-monetary contribution, as consideration for its participation in the capital increase undertaken by Red Eléctrica Internacional S.A.U., another Group company.

These gains will be kept in equity under the investment is sold outside the Group or written down for impairment, triggering its reclassification to profit or loss (note 4-e).

This heading additionally reflects movements in the fair value of derivative financial instruments designated as cash flow hedges. In 2024, those movements totalled 330 thousand euros.

15 Non-current provisions

The reconciliation of the opening and year-end balances:

Thousands of euros	31 Dec. 2022	Additions	Utilised	Actuarial gains and losses	Transfers to current	31 Dec. 2023	Additions	Utilised	Actuarial gains and losses	Transfers to current	31 Dec. 2024
Provisions for employee	14,894	1,964	(309)	(815)	(1,093)	14,641	1,909	(259)	993	(1,438)	15,846
Other provisions	5,500	125	—	—	—	5,625	90	(33)	—	—	5,682
Total	20,394	2,089	(309)	(815)	(1,093)	20,266	1,999	(292)	993	(1,438)	21,528

Provisions for employee benefits include the future health insurance commitments assumed by the Company with its staff upon retirement, calculated using actuarial assumptions made by an independent expert, specifically the following assumptions for 2024 and 2023:

	Actuarial assumptions 2024 2023

Discount rate	3.26%	3.31%
Growth in costs	3.00%	3.00%
Mortality table	PER2020_Col_1er.orden	PER2020_Col_1er.orden

The impact of a one-point increase and a one-point decrease in the health insurance costs would be as follows:

	Sensitivity to change in growth in costs assumption
	2024		2023
Thousands of euros	(+1%)	(-1%)	(+1%)	(-1%)
Current service cost	57	(44)	58	(44)
Net interest cost of the cost of the post-employment health insurance	1	(1)	1	—
Accumulated post-employment benefit obligations for health insurance	2,248	(1,744)	1,971	(1,527)

Elsewhere, the impact of a half-point increase and decrease in the discount rate used by way of actuarial assumption is shown below:

	Sensitivity to changes in discount rate
	2024		2023
Thousands of euros	(+0.5%)	(-0.5%)	(+0.5%)	(-0.5%)
Current service cost	(23)	26	(23)	27
Net interest cost of the cost of the post-employment health insurance	41	(42)	44	(44)
Accumulated post-employment benefit obligations for health insurance	(900)	1,031	(788)	902

The accrued amounts are recognised as employee benefits expense or as finance costs, depending on their nature. The amounts of employee benefits expense and finance costs recognised in the statement of profit or loss in 2024 were 239 thousand euros and 252 thousand euros, respectively (2023: 214 thousand euros and 295 thousand euros, respectively). Changes in the present value of these obligations resulting from actuarial gains and losses are recognised within reserves in equity. The gross amount recognised in 2024 was a gain of 993 thousand euros (2023: a loss of 815 thousand euros) and is shown under actuarial gains and losses in the reconciliation above.

Provisions for employee benefits also include the commitments assumed by the Company under its long-term employee remuneration programme, with the amounts falling due in the next 12 months reclassified to current provisions.

Lastly, other provisions in the table above include the amounts recognised by the Company annually to cover potentially unfavourable rulings on third-party claims.

16 Current and non-current borrowings

The breakdown of these headings at 31 December 2024 and 2023:

Thousands of euros	31 Dec. 2024	31 Dec. 2023
Notes and other marketable securities	494,716	399,299
Bank borrowings	208,587	138,785
Derivative financial instruments	6,401	–
Other liabilities	16	16
Non-current borrowings	709,720	538,100

Thousands of euros	31 Dec. 2024	31 Dec. 2023
Notes and other marketable securities	433,618	25,630
Bank borrowings	5,766	6,794
Other current borrowings	126,348	163,490
Current borrowings	565,732	195,914

At 31 December 2024, non-current and current notes and other marketable securities reflect the notes issued by the Company in 2024 and 2020 in the amounts of 500 and 400 million euros, respectively.

In 2024, it issued 500 million euros of 3.375% green notes in the euromarket under the scope of a specific standalone shelf prospectus filed with the Luxembourg stock exchange. The notes have a maturity of eight years and were issued at 99.428% of par, implying a yield of 3.458%. The notes proceeds were received on 9 July 2024. The average rate of interest borne on these notes was 3.51% in 2024.

The proceeds will be used to finance and/or refinance eligible projects under the umbrella of the Group's green finance framework. In this manner the Company has also reinforced funding for Red Eléctrica, a Group company, positioning it to tackle the steep challenges derived from the energy transition from a position of greater financial strength.

In 2020, the Company issued 400 million euros of notes in the euromarket under a specific standalone shelf prospectus filed with the Luxembourg stock exchange. Those notes mature in 2025 and accrued interest at an average rate of 1.01% in 2024 (2023: 1.01%).

The interest accrued and unpaid on these two notes issues stood at 10,649 thousand euros at year-end 2024 (2023: 2,505 thousand euros) and is included under current notes and other marketable securities. They accrued 12,481 thousand euros of finance costs in 2024. Current notes and other marketable securities also includes the interest accrued and unpaid on the subordinated perpetual securities issue detailed in note 14-b in the amount of 23,125 thousand euros at both reporting dates.

Non-current bank borrowings includes 208,587 thousand euros drawn down under euro and US dollar credit facilities due between 2026 and 2029 at 31 December 2024 (2023: 138,785 thousand euros drawn under US dollar facilities). These borrowings accrued 11,365 thousand euros of finance costs in 2024.

At year-end 2024, the balance recognised under non-current derivative financial instruments reflects their fair value. The instruments' positive valuation at 31 December 2023 means they are recognised within financial assets at that year-end (note 12). Their breakdown and maturity profile are disclosed in note 11.

At both reporting dates, other liabilities included 16 thousand euros corresponding to long-term security deposits received.

Current bank borrowings at 31 December 2023 included US dollar-denominated loans and credit facilities in the amount of 1,746 thousand euros which fell due in 2024.

At 31 December 2024, the interest accrued and outstanding on those loans amounted to 2,072 thousand euros (2023: 1,515 thousand euros) and is included under current bank borrowings. This heading also includes the interest accrued and outstanding on the Company's derivative financial instruments in the amount of 3,694 thousand euros at 31 December 2024 (2023: 3,533 thousand euros).

The average rate of interest on bank borrowings was 5.52% in 2024 (2023: 5.10%).

Other current borrowings break down as follows:

Thousands of euros	31 Dec. 2024	31 Dec. 2023
Dividends	108,082	147,249
Payable to fixed-asset suppliers and other borrowings	18,266	16,241
Total	126,348	163,490

Payable to fixed-asset suppliers and other borrowings includes the liability resulting from the accounting treatment of the Company's investments in EIGs (note 12).

17 Tax matters

The Company files its taxes under the tax consolidation regime as part of Tax Group 57/2002, of which it is the parent.

a) Reconciliation of accounting profit to taxable income

Accounting profit differs from taxable income due to the different treatment afforded certain transactions for tax versus accounting purposes.

Below is a reconciliation of accounting profit for 2024 and 2023 and the taxable income the Company expects to report when its annual financial statements have been approved:

Thousands of euros	2024	2023
Accounting profit for the year before tax	204,293	456,454
Permanent differences	(142,639)	(431,986)
Taxable income before temporary differences	61,654	24,468
Temporary differences:
Originating in the current year	2,775	11,659
Reversals during the year	(8,981)	(4,365)
Total	(6,206)	7,294
Losses of the economic interest groupings	(83,234)	(100,035)
Expenses recognised in equity	(23,126)	(40,083)
Taxable income/(tax loss)	(50,912)	(108,356)

Taxable income was deducted by the losses declared by the economic interest groupings in which the Company has investments in the amount of 83,234 thousand euros in 2024 (100,035 thousand euros in 2023) (note 12).

b) Effective income tax rate and reconciliation of accounting profit to tax expense/income

Income tax expense was calculated as follows:

Thousands of euros	2024	2023
Accounting profit for the year before tax	204,293	456,454
Permanent differences	(142,639)	(431,986)
Taxable income before temporary differences	61,654	24,468
Tax rate	25%	25%
Tax at the current rate	15,414	6,117
Utilisation of tax credits	(24)	(39)
Tax expense for the year	15,390	6,078
Income tax on foreign earnings	(2,031)	—
Other adjustments	(6)	(52)
Income tax expense	13,353	6,026
Effective tax rate	6.54%	1.32%
Breakdown of income tax:
Current income tax	11,805	7,898
Deferred income tax	1,554	(1,820)
Other adjustments	(6)	(52)
Income tax expense	13,353	6,026

The effective income tax rate is shaped by permanent differences, tax credits and taxes paid abroad. The difference between the effective and statutory rates is primarily attributable to application of the double taxation relief for dividends and gains from the disposal of significant interests in resident entities, as regulated in article 21 of Spain's Income Tax Act (Law 27/2014 of 27 November 2014) and the deduction for the capitalisation reserve derived from the increase in equity, as allowed in article 25 of that same Act.

In 2024, it was additionally affected by an adjustment for the impairment loss recognised on the Company's equity investment in Redeia Sistemas de Telecomunicaciones S.A.U. In 2024 and 2023, the permanent differences associated with application of the exemption arrangements designed to avoid double taxation on the dividends received from the Company's subsidiaries related to dividends received from Red Eléctrica de España and Redeia Infraestructuras de Telecomunicación for the most part.

Taxable income was also reduced by the capitalisation reserve in both years. The capitalisation reserve endowments for 2024 and 2023 are being made at Red Eléctrica de España, S.A.U., a subsidiary of the Tax Group, as contemplated in article 62.1 d) of Law 27/2014 (note 14).

The tax credits utilised in 2024 and 2023 derived from credit for donations and company contributions to pension schemes.

In 2024, income tax on foreign earnings reflects the income obtained as a result of reimbursement of the withholdings made in Portugal on the dividends received from Redes Energéticas Nacionais in respect of 2011, 2012 and 2013 on the basis of favourable rulings issued by the Portuguese Supreme Court on the reimbursement applications filed by the Company before the Portuguese tax authorities.

The Redeia Group's current tax expense is not affected by the Pillar Two global minimum tax rules. Additionally, the Group is availing itself of the exception regarding the recognition of deferred tax assets and liabilities derived from implementation of Spanish Law 7/2024.

c) Deferred tax assets and liabilities

Temporary differences in the recognition of expenses and income for accounting and tax purposes at 31 December 2024 and 2023, and the corresponding accumulated deferred taxes, were as follows:

	2024		2023
Thousands of euros	Statement of profit or loss	Income and expense recognised directly in equity	Statement of profit or loss	Income and expense recognised directly in equity
Deferred tax assets:
Originated in prior years	21,845	2,398	4,902	2,602
Originated in the current year	694	248	2,925	—
Reversals in respect of prior years	(2,294)	—	(1,140)	(204)
Adjustments in respect of prior years	61	—	130	—
Unused tax losses - Add. Prov. 19 Income Tax Act	7,555	—	15,028	—
Total deferred tax assets	27,861	2,646	21,845	2,398
Deferred tax liabilities:
Originated in prior years	(1,671)	—	(1,707)	—
Originated in the current year	—	(110)	(10)	—
Reversals in respect of prior years	46	—	46	—
Adjustments in respect of prior years	10	—	—	—
Total deferred tax liabilities	(1,615)	(110)	(1,671)	—

Deferred tax assets reflect reversals of taxes that were deferred in 2013 and 2014 as a result of application of the limit on the deduction of depreciation charges under article 7 of Law 16/2012 of 27 December 2012, introducing a range of tax measures designed to consolidate Spain's public finances and shore up economic activity, and as a result of the start in 2015 of depreciation for tax purposes of the net increase in value resulting from the asset revaluation exercise undertaken at 31 December 2012, as stipulated in article 9 of that same piece of legislation, and also due to long-term employee benefit obligations.

Unused tax losses - Add. Prov. 19 Income Tax Act in the table above includes a deferred tax asset associated with the tax losses reported by several Tax Group companies in 2023 and 2024 that could not be included in taxable income under application of additional provision nineteen of Law 27/2014, introduced via Law 38/2022 of 27 December 2022.

The deferred tax liabilities derive from the accelerated depreciation of certain assets.

The notes to the Company's financial statements for 2006 included the disclosures required under article 86 of Law 27/2014 regarding the merger between Red de Alta Tensión, S.A.U. (REDALTA) and Infraestructuras de Alta Tensión S.A.U. (INALTA). The notes to the 2008 financial statements included the disclosures regarding the contribution of the Spanish grid TSO business to Red Eléctrica de España and the notes to the 2015 financial statements included the disclosures regarding the spin-off and contribution of the telecommunications business to Redeia Infraestructuras de Telecomunicación and the non-monetary contribution to Red Eléctrica Internacional of the shares in REN.

d) Years open to inspection

In accordance with prevailing tax legislation, tax returns cannot be considered final until they have been inspected by the tax authorities or until the applicable inspection period has elapsed.

In 2022, the tax authorities initiated general inspection proceedings with respect to corporate income tax (consolidated tax regime) covering 2017 to 2020 and partial verification proceedings covering 2012 and 2014. In 2023, they also began partial verification proceedings covering 2021 for other companies within the Tax Group.

The proceedings all concluded between 2023 and 2024 without the Company incurring any penalties whatsoever and or having to make any restatements. The matters subject to debate that are being contested are currently being appealed before the National Economic-Administrative Court.

The Company remains party to certain court proceedings related with its income tax from 2011 and 2014.

The Tax Group has also requested the rectification of the tax paid in instalments between 2016 and 2022. In 2020, the tax authorities ruled in favour of the rectification requested in respect of 2016 and 2017 and the Company has appealed its decision regarding the other years requested.

In accordance with prevailing tax legislation, the tax returns presented for the various different taxes cannot be considered final until they have been inspected by the tax authorities or until the applicable inspection period has elapsed (four years).

Since existing tax law and regulations are subject to interpretation, tax inspections initiated in the future for years open to inspection could give rise to tax liabilities that are currently not possible to quantify objectively. However, the Company's Board of Directors estimates that any liabilities that could arise as a result of any such inspections would not have a material impact on its future earnings.

18 Trade and other payables

The breakdown of this heading at year-end 2024 and 2023:

Thousands of euros	31 Dec. 2024	31 Dec. 2023
Payables to group companies	12	8
Other payables	12,492	11,594
Payable to employees	10,743	11,059
Other taxes payable	1,485	1,400
Total	24,732	24,061

Other payables at both year-ends include the balances pending payment in relation to the Company's day-today activities managing its Group.

Payable to employees relates to bonuses and other remuneration pending payment to Company employees at 31 December 2024 and 2023.

At both reporting dates, other taxes payable relate primarily to personal income tax withholdings and social security contributions payable by the Company.

19 Disclosures regarding average supplier payment term. Additional Provision Three - "Disclosure requirements" under Law 15/2010

One of the objectives of Law 18/2022 of 28 September 2022, on business creation and growth, is to reduce late payments on trade debt and enhance access to financing.

Among other things, it amends Law 15/2010 of 5 July 2010, which in turn amended Law 3/2004 of 29 December 2004, establishing measures to tackle supplier non-payment, regulating the deadlines for settling trade transactions between companies or between companies and the public sector, specifically in Additional Provision Three thereof.

The amendments made to Additional Provision Three by Law 18/2022 require:

All corporate enterprises to expressly disclose their average supplier payment terms in the notes to their annual financial statements.
Listed companies and unlisted companies that do not present short-form financial statements are required to publish, in addition to their average payment terms, the monetary value and number of invoices paid within the legally stipulated deadline and their percentage shares of the corresponding totals. That information must be included in their financial statement notes and on their corporate websites if they have one.

In its official journal no. 132/2022, the ICAC writes that this new legislation expands the disclosures that corporate enterprises must include in their financial statement notes and on their corporate website, to the extent they have one. However, it does not modify the methodology used to calculate the average supplier payment term and therefore does not modify its earlier resolution of 29 January 2016, which sought to clarify and systematise the information companies are required to include in their separate and consolidated financial statements for the purposes of complying with their disclosure requirements under Additional Provision Three of Law 15/2010 of 5 July 2010, amending Law 3/2004 of 29 December 2004.

As required under these regulations, the disclosures regarding the Company's average payment terms in 2024 and 2023 are provided below:

Days	2024	2023
Average supplier payment term	36	36
Paid transactions ratio	36	37
Outstanding transactions ratio	29	24

Thousands of euros	2024	2023
Total payments made	27,034	25,653
Total payments outstanding	3,330	1,763

Thousands of euros	2024	2023
Monetary amount of invoices paid within the legal deadline	26,346	23,725
Total payments made	27,034	25,653
Monetary amount of invoices paid within the legal deadline as a % of total payments made	97.5%	92.5%

	2024	2023

Number of invoices paid within the maximum period stipulated	2,446	1,748
Total number of invoices paid	2,483	1,847
No. of invoices paid within the legal deadline as a % of total invoices paid	98.5%	94.6%

20 Income and expenses

a) Revenue

The revenue breakdown for 2024 and 2023:

Thousands of euros	31 Dec. 2024	31 Dec. 2023
Provision of services	81,875	78,051
Finance income from investments in equity instruments of group companies and associates	301,260	415,051
Finance income from investments in securities and other financial instruments of group companies and associates	77,827	55,274
Total	460,962	548,376

Provision of services mainly includes the provision of management support services under agreements with the following group companies: Red Eléctrica de España, Red Eléctrica Internacional, Redeia Infraestructuras de Telecomunicación, Red Eléctrica Infraestructuras en Canarias, Redeia Financiaciones, Red Eléctrica Financiaciones, Redeia Sistemas de Telecomunicaciones, Elewit, Hispasat and Inelfe; it also includes lease income, likewise generated primarily by group companies (note 7).

In 2024, finance income from investments in equity instruments of group companies and associates includes dividends collected from Red Eléctrica de España, Redeia Infraestructuras de Telecomunicación and Redeia Reaseguros, and in 2023 included dividends collected from Red Eléctrica de España and Redeia Infraestructuras de Telecomunicación.

In both years, finance income from investments in securities and other financial instruments of group companies and associates includes income under loan agreements and credit facilities arranged with Red Eléctrica de España, Redeia Sistemas de Telecomunicaciones, Red Eléctrica Internacional, Red Eléctrica Chile and Elewit (note 21).

The breakdown of revenue by geographical region in 2024 and 2023:

Thousands of euros	2024	2023
Spain	444,054	535,091
European Union	1,091	404
Other countries	15,817	12,881
Total	460,962	548,376

European Union in the table above includes services provided to the Group company, Interconexión Eléctrica Francia-España, S.A.S., with registered office in Paris (France) in both 2024 and 2023. In 2024, it also includes the dividends collected from Redeia Reaseguros.

b) Employee benefits expense

The breakdown of this heading in 2024 and 2023:

Thousands of euros	31 Dec. 2024	31 Dec. 2023
Wages and salaries	35,768	34,855
Social security	7,347	6,702
Contributions to pension funds and similar obligations	657	599
Other items and employee benefits	4,825	4,924
Total	48,597	47,080

Wages and salaries include employee remuneration and termination benefits.

Note that this heading includes director remuneration (note 22).

Headcount

The Company's average headcount by employee category in 2024 and 2023:

	2024	2023
Management team	72	70
Senior technicians and middle managers	262	242
Technicians	32	34
Specialists and administrative staff	53	57
Total	419	403

The breakdown by gender and employee category of the Company's headcount at 31 December 2024 and 2023:

	2024			2023
	Men	Women	Total	Men	Women	Total
Management team	37	37	74	36	35	71
Senior technicians and middle managers	138	143	281	128	132	260
Technicians	16	11	27	20	15	35
Specialists and administrative staff	8	44	52	12	44	56
Total	199	235	434	196	226	422

The breakdown of employees with a disability of a severity of 33% or higher at year-end:

		2024		2023
	Men	Women	Total	Men	Women	Total
Senior technicians and middle managers	1	4	5	–	–	–
Technicians	–	1	1	–	3	3
Specialists and administrative staff	–	1	1	–	1	1
Total	1	6	7	–	4	4

The Company had 12 directors, six men and six women, at both reporting dates.

c) Finance income and costs

Finance costs in both years primarily consisted of interest expense on notes and other marketable securities, borrowings from group companies, bank borrowings and derivative financial instruments.

Finance income, meanwhile, mainly included income from the Company's investments in economic interest groupings (note 12) and from short-term financial investments and other cash equivalents.

d) Impairment of and gains/(losses) on disposal of fixed assets

This heading includes the gain generated in 2023 on the sales detailed in note 6.

e) Impairment of and gains/(losses) on disposal of financial assets

In 2024, this heading includes the impairment loss disclosed in note 8.

21 Transactions with group companies, associates and related parties and resulting year-end balances

• Transactions with Group companies and associates and resulting year-end balances

All transactions with group companies and associates were arranged on an arm's length basis. The balances outstanding with group companies and associates at year-end were as follows:

	2024			2023
Thousands of euros	Loans and receivables	Security deposits received	Borrowings and payables	Loans and receivables	Security deposits received	Borrowings and payables
Red Eléctrica de España, S.A.U. (1)	437,936	1,402	1,869	813,218	1,402	9,513
Red Eléctrica Internacional, S.A.U. (1)	123,818	—	79,933	110,224	—	27,476
Red Eléctrica Financiaciones, S.A.U. (1)	113	—	22,496	99	—	19,808
Redeia Infraestructuras de Telecomunicación, S.A. (1)	1,104	67	40,316	945	67	38,386
Red Eléctrica Infraestructuras en Canarias, S.A.U. (1)	359	1	4,749	401	15	4,781
Redeia Sistemas de Telecomunicaciones, S.A.U. (1)	322,154	2	2,231	331,625	2	2,023
Elewit, S.A.U. (1)	18,337	18	—	14,432	18	—
Redeia Reaseguros, S.A. (1)	—	—	140,148	—	—	129,640
Redeia Financiaciones, S.L.U. (1)	40	—	2,172	38	—	2,001
Red Eléctrica Chile SpA (1)	218,235	—	—	192,083	—	2
Red Eléctrica Andina, S.A. (1)	—	—	11	—	—	6
Safedelimit, S.L. (1)	1	—	—	—	—	—
Red Eléctrica del Norte 2, S.A. (1)	332	—	—	309	—	—
Transmisora Eléctrica del Norte S.A. (2)	13	—	—	13	—	—
Hispasat, S.A. (1)	917	—	—	305	—	2,053
Hispamar Exterior S.L.U. (1)	—	—	255	496	—	—
Hispasat Canarias S.L.U. (1)	—	—	4,302	—	—	35,195
Axess Network Solutions, S.L. (1)	—	—	—	1	—	—
Axess Network Solutions Arabia Saudita, S.L. (1)	—	—	—	—	—	37
Interconexión Eléctrica Francia-España S.A.S. (3)	317	—	—	303	—	—
Total group companies	1,123,676	1,490	298,482	1,464,492	1,504	270,921

(1) Group companies.

(2) Associates.

(3) Joint ventures

The loans to Red Eléctrica de España mainly include the short-term credit facility arranged with that company in the amount of 1,500 million euros, which was drawn down 396,327 thousand euros at 31 December 2024 (2023: by 771,992 thousand euros); the average rate of interest on the facility was 4.18% in 2024 (3.93% in 2023). This heading also includes balances receivable and interest accrued and pending collection.

The loans to Red Eléctrica Internacional mainly include the short-term credit facility arranged with that company in the amount of USD 215 million, which was drawn down by 120,304 thousand euros at 31 December 2024 (2023: 106,942 thousand euros); the average rate of interest on the facility was 5.40% in 2024 (6.02% in 2023). This heading also includes balances receivable and interest accrued and pending collection.

The loans to Redeia Sistemas de Telecomunicaciones include the credit facility arranged with that company in 2019, due 2029, in the amount of 435 million euros, which was drawn down by a non-current balance of 311,500 thousand euros at 31 December 2024 and 2023 and a current balance of 6,879 thousand euros (2023: 15,792 thousand euros); the average rate of interest on the facility was 4.65% in 2024 (4.11% in 2023). This heading also includes interest accrued and pending collection.

Loans to Elewit include a credit facility arranged with that company in the amount of 25 million euros in 2019 which was drawn down by 17,317 thousand euros at 31 December 2024 (2023: 13,628 thousand euros). This loan accrued interest at an average rate of 4.25% in 2024 (2023: 3.84%). This heading also includes balances receivable and interest accrued and pending collection.

Loans to Red Eléctrica Chile mainly include the loan arranged with that company in 2021 in the amount of USD 185 million due 2026, which was fully drawn down at 31 December 2024 in the amount of 178,336 thousand euros (2023: 167,668 thousand euros) and accrued interest at an average rate of 7.68% in 2024 (2023: 7.62%). In order to mitigate the foreign exchange risk on this dollar-denominated loan, the Company has arranged cross currency swaps over the principal and interest (note 11). This heading also includes interest accrued and pending collection.

Borrowings from Red Eléctrica de España reflect the tax owed to the latter by the Company in its capacity as parent of the Tax Group (note 17).

Borrowings from Red Eléctrica Internacional include a credit facility arranged with that company in the amount of 100 million euros in 2023 which was drawn down by 77,526 thousand euros at 31 December 2024 (2023: 25,220 thousand euros). This loan accrued interest at an average rate of 4.18% in 2024 (2023: 4.33%). This heading also includes interest accrued and pending payment.

Borrowings from Red Eléctrica Financiaciones include a credit facility arranged with that company in the amount of 50 million euros in 2023 which was drawn down by 22,271 thousand euros at 31 December 2024 (2023: 19,583 thousand euros). This loan accrued interest at an average rate of 4.25% in 2024 (2023: 4.34%). This heading also includes interest accrued and pending payment.

Borrowings from Redeia Infraestructuras de Telecomunicación mainly include a credit facility arranged with that company in the amount of 76 million euros in 2022 which was drawn down by 40,103 thousand euros at 31 December 2024 (2023: 38,118 thousand euros). This loan accrued interest at an average rate of 6.25% in 2024 (2023: 5.50%). This heading also includes interest accrued and pending payment.

Borrowings from Red Eléctrica Infraestructuras en Canarias include a credit facility arranged with that company in the amount of 25 million euros in 2023 which was drawn down by 4,700 thousand euros at 31 December 2024 (2023: 4,723 thousand euros). This loan accrued interest at an average rate of 4.26% in 2024 (2023: 4.12%). This heading also includes interest accrued and pending payment.

Borrowings from Redeia Reaseguros include a credit facility arranged with that company in the amount of 150 million euros in 2022 which was drawn down by 138,808 thousand euros at 31 December 2024 (128,203 thousand at year-end 2023). This loan accrued interest at an average rate of 4.25% in 2024 (2023: 3.89%). This heading also includes interest accrued and pending payment.

Borrowings from Redeia Financiaciones include a credit facility arranged with that company in the amount of 3 million euros in 2021 which was drawn down by 2,151 thousand euros at 31 December 2024 (2023: 1,975 thousand euros). This loan accrued interest at an average rate of 4.25% in 2024 (2023: 3.79%). This heading also includes interest accrued and pending payment.

Lastly, the amounts payable to and from Hispasat, S.A., Hispamar Exterior S.L. and Hispasat Canarias S.L. essentially reflect the Company's tax credits and debits with those companies in its capacity as the parent of the Tax Group.

The Company performed the following transactions with group companies and associates:

	2024			2023
Thousands of euros	Services rendered and other income	Finance income	Operating	expenses Finance costs	Dividend income	Services rendered and other income	Finance income	Operating	expenses Finance costs	Dividend income
Red Eléctrica de España, S.A.U. (1)	69,963	40,027	17	—	266,882	67,705	23,405	—	—	388,123
Red Eléctrica Internacional, S.A.U. (1)	3,079	6,571	—	1,585	—	2,929	4,968	—	509	—
Redeia Infraestructuras de Telecomunicación, S.A. (1)	2,757	—	—	2,396	33,833	2,592	—	—	1,854	26,928
Redeia Financiaciones, S.L.U. (1)	68	—	—	87	—	79	—	—	63	—
Red Eléctrica Infraestructuras en Canarias, S.A.U. (1)	701	—	—	228	—	491	—	—	154	—
Red Eléctrica Financiaciones, S.L.U. (1)	68	—	—	935	—	79	—	—	426	—
Redeia Sistemas de Telecomunicaciones, S.A.U. (1)	938	15,140	—	—	—	743	13,832	—	—	—
Elewit, S.A.U. (1)	1,177	604	880	—	—	1,011	510	860	—	—
Redeia Reaseguros, S.A. (1)	—	—	—	5,758	545	—	—	—	3,957	—
Red Eléctrica del Norte 2, S.A. (1)	332	—	—	—	—	309	—	—	—	—
Red Eléctrica Chile SpA (1)	—	15,485	—	—	—	—	12,559	2	—	—
Red Eléctrica Andina, S.A. (1)	—	—	101	—	—	—	—	—	—	—
Hispasat Canarias S.L.U. (1)	25	—	—	—	—	—	—	—	—	—
Hispasat, S.A. (1)	1,446	—	—	—	—	1,019	—	—	—	—
Interconexión Eléctrica Francia-España S.A.S. (3)	1,092	—	—	—	—	807	—	—	—	—
Transmisora Eléctrica del Norte S.A. (2)	—	—	—	—	—	13	—	—	—	—
Total group companies	81,646	77,827	998	10,989	301,260	77,777	55,274	862	6,963	415,051

(1) Group companies.

(2) Associates.

(3) Joint ventures

In both 2024 and 2023, provision of services essentially comprises the management support services provided to Group companies.

This heading also includes income under the lease agreements with Red Eléctrica de España, Redeia Infraestructuras de Telecomunicación, Red Eléctrica Infraestructuras en Canarias, Elewit and Hispasat (note 7).

Finance income in 2024 and 2023 mainly reflects the interest accrued under the loans and credit agreements in place with Red Eléctrica de España, Redeia Sistemas de Telecomunicaciones, Red Eléctrica Internacional, Red Eléctrica Chile and Elewit.

In 2024, dividend income includes dividends collected from Red Eléctrica de España, Redeia Infraestructuras de Telecomunicación and Redeia Reaseguros, and in 2023 included dividends collected from Red Eléctrica de España and Redeia Infraestructuras de Telecomunicación.

• Transactions with other related parties and year-end balances

The Company did not perform any transactions with other related parties in 2024 or 2023.

22 Director remuneration

The Director Remuneration Policy for Redeia Corporación, S.A. for 2022 - 2024 was approved at the Annual General Meeting held on 29 June 2021 (the former policy was approved in 2019 and covered 2019 to 2021).

At the Annual General Meeting held on 4 June 2024, and as stipulated in the Company's bylaws, the Parent's shareholders ratified the motion presented by the Board of Directors for the approval of the Annual Report on Director Remuneration, which included, among other matters, the proposal for director remuneration in 2024.

The remuneration approved, which covers the members of the Board of Directors, the Chairwoman and the CEO, is unchanged from 2023.

The Chairwoman, in her capacity as non-executive chair, receives a fixed annual sum in addition to remuneration for her membership of the Board of Directors. She only receives fixed remuneration, i.e., she has not been allocated any variable remuneration (neither an annual bonus nor participation in long-term incentive schemes) and she is not entitled to any termination benefits.

The CEO, on the other hand, receives fixed and variable remuneration (an annual bonus and participation in a long-term incentive scheme) for the performance of his executive duties, and a fixed amount in his capacity as member of the Board of Directors. He also receives certain benefits. Some of both components of his variable remuneration is settled via the delivery of Company shares.

In addition, the CEO is a beneficiary of a defined contribution pension scheme, covering retirement, death and permanent disability. Redeia Corporación, S.A.'s obligation under this scheme is limited to making an annual contribution equivalent to 20% of the CEO's fixed compensation for his performance of executive duties.

The CEO's annual variable remuneration is framed by predetermined and quantifiable objective criteria and targets established by the Company's Appointments and Remuneration Committee at the start of each year. The targets are aligned with the strategies and initiatives laid down in the Group's Strategic Plan and their delivery is assessed by that same committee.

The CEO also participates in the Long-Term Incentive Plan (LTIP) for Promoting the Energy Transition, Reducing the Digital Divide and Boosting Diversification. That Plan's targets are likewise associated with those set out in the Group's Strategic Plan and are aligned with the key aspects of the Director Remuneration Policy. The LTIP has a duration of six years and will end on 31 December 2025.

Under the Director Remuneration Policy, the CEO's contract, in line with generally accepted market practice, includes a termination benefit equivalent to one year's remuneration in the event his contract is terminated by the Company or as a result of a change of control.

Likewise in line with market practices in these cases, following his appointment as CEO, his previous employment contract was suspended. In the event of his termination, he would accrue, for severance purposes, the remuneration in force at the date of suspension, taking into consideration his length of service at the Group up until his appointment as CEO (15 years) plus the period during which he provides his services, if any, following his discontinuation as CEO, all of which in keeping with prevailing labour legislation.

As for the members of the Board of Directors, their remuneration consists of a fixed annual payment, remuneration for attending board meetings, remuneration for membership of the board committees, as the case may be, and specific annual remuneration for the chairs of those committees and for the position of lead independent director. These remuneration concepts and the related amounts have not changed in 2024.

Lastly, the directors are compensated or reimbursed for reasonable and duly justified expenses incurred in order to attend the meetings and perform other tasks directly related with their director duties, such as travel, accommodation and meals.

The breakdown of the remuneration accrued by the members of the Company's Board of Directors in 2024 and 2023 is provided below:

Thousands of euros	2024	2023
Total remuneration in their capacity as directors	2,504	2,503
Remuneration of certain directors in their capacity as executives (1)	743	743
Total	3,247	3,246

(1) Includes the fixed remuneration and the annual variable remuneration accrued during the year.

The breakdown of director remuneration by class of director:

Thousands of euros	2024	2023
Executive directors	890	890
Proprietary directors	525	525
Independent external directors	1,286	1,285
Other external directors	546	546
Total director remuneration	3,247	3,246

The breakdown by item and individual director of the remuneration accrued by the members of the Company's Board of Directors in 2024 and 2023 is provided below:

Thousands of euros	Fixed remuneration	Variable remuneration	Board meeting attendance fees	Committee membership	Committee chairs	Lead Independent Director	Other remuneration (4)	Total 2024	Total 2023
Beatriz Corredor Sierra	530	—	16	—	—	—	—	546	546
Roberto García Merino	481	263	16	—	—	—	130	890	890
Mercedes Real Rodrigálvarez (1)	131	—	16	28	—	—	—	175	175
Ricardo García Herrera	131	—	16	28	—	—	—	175	175
Esther María Rituerto Martínez	131	—	16	28	—	—	—	175	175
Socorro Fernández Larrea	131	—	16	28	15	—	—	190	190
Antonio Gómez Ciria	131	—	16	28	15	—	—	190	190
José Juan Ruiz Gómez	131	—	16	28	—	—	—	175	175
Marcos Vaquer Caballería	131	—	16	28	8	8	—	191	175
Elisenda Malaret García	131	—	16	28	—	—	—	175	175
José María Abad Hernández	131	—	16	28	—	—	—	175	175
Guadalupe de la Mata Muñoz (2)	75	—	9	16	—	—	—	100	—
Carmen Gómez de Barreda Tous de Monsalve (3)	56	—	8	12	7	7	—	90	205
Total remuneration accrued	2,321	263	193	280	45	15	130	3,247	3,246

(1) Amounts received by SEPI.

(2) New director appointed at the Annual General Meeting of 4 June 2024.

(3) Stepped down as director with effect from the Annual General Meeting of 4 June 2024.

(4) Includes the costs derived from the company benefits included in the CEO's pay package.

The Company did not recognise any loans, advances or guarantees extended to the members of its Board of Directors on its balance sheet at either 31 December 2024 or 31 December 2023. Not did it have any pension or life insurance obligations, other than as outlined above, on their behalf at either reporting date.

The Company had arranged director and officer liability insurance at both reporting dates. These policies cover both the Company's directors and its key management personnel. The annual cost of the premiums in 2024 was 187 thousand euros, including tax (221 thousand euros in 2023). These premiums are calculated based the nature of the Company's activities and as a function of its financial metrics, so that it is not feasible to apportion them between the directors and key management personnel or to allocate them to each individual.

The members of the Board of Directors did not perform any transactions with the Company, either directly or through persons acting on their behalf, outside of the ordinary course of business or other than on an arm's length basis in either reporting period.

23 KMP remuneration

The key management personnel who provided services to the Company in 2024 and 2023 and their positions at year-end are as follows:

Name	Position
Juan Majada Tortosa	Managing Director of International Business
Mariano Aparicio Bueno	Managing Director of Telecommunications
Emilio Cerezo Diez	Chief Financial Officer
Carlos Méndez-Trelles García	General Secretary and Secretary of the Board of Directors
José Antonio Vernia Peris	Chief Resources Officer
Miryam Aguilar Muñoz	Chief Communications Officer
Eva Pagán Díaz	Chief Sustainability Officer
Silvia María Bruno De La Cruz	Director of Innovation and Technology
Carlos Puente Pérez	Director of Corporate Development
Eva Rodicio González	Director of Internal Audit and Risk Control
Mónica Moraleda Saceda (1)	Director of Legal Services
Julián Díaz-Peñalver Carrasco (1)	Director of Regulation
Laura de Rivera García de Leániz (2)	Director of Regulation and Legal Services

(1) The former Regulation and Legal Services Department was restructured on 27 May 2024 to create two separate departments, the Regulation Department and the

Legal Services Department. (2) Laura de Rivera García de Leániz presented her resignation from the Group on 18 January 2024.

In 2024, the Company's key management personnel accrued 3,166 thousand euros of remuneration, which has been recognised under employee benefits expense in the accompanying statement of profit or loss Note that there were organisational changes and changes in the consolidation scope that affected the number of key management personnel and the composition and members of that team in 2024. On a like-for-like basis, i.e., only analysing remuneration for the professionals who were part of the Group's key management personnel for all of 2023 and 2024, the year-on-year increase in their remuneration narrows to 4.88%.

These amounts include the accrual of variable annual remuneration, on the assumption that the objectives set each year will be met. After delivery of the corresponding targets has been verified, these bonuses are paid out in the early months of the following year, adjusted for the definitive delivery metrics.

Of the total remuneration accrued by key management personnel in 2024, 85 thousand euros was accounted for by contributions to life insurance and pension plans (2023: 49 thousand euros).

The Company had not extended any advances or loans to these executives at either 31 December 2024 or 31 December 2023. The Group had assumed life insurance commitments on behalf of these executives at both reporting dates; the premiums on those policies cost it approximately 20 thousand euros in 2024 (2023: 14 thousand euros).

The key management personnel also participate in the Long-Term Incentive Plan (LTIP) for Promoting the Energy Transition, Reducing the Digital Divide and Boosting Diversification. That Plan's targets are likewise associated with those set out in the Group's Strategic Plan and are aligned with the key aspects of the Director Remuneration Policy. The LTIP has a duration of six years and will end on 31 December 2025.

The Company's serving key management personnel do not enjoy any guarantees or golden parachute clauses in the event of dismissal. In the event of the termination of their employment agreements, their severance would be calculated in keeping with ordinary labour legislation.

In 2015, the Company implemented a Structural Management Plan that applies to some of its key management personnel. The beneficiaries of this Plan must comply with certain requirements and their participation can be modified or revoked by the Group under certain circumstances.

The Company had arranged director and officer liability insurance at both reporting dates. These policies cover all of the Company's key management personnel. The annual cost of the premiums amounted to 187 thousand euros, including tax, in 2024 (221 thousand euros in 2023). These premiums are calculated based

the nature of the Group's activities and as a function of its financial metrics, so that it is not feasible to apportion them between the key management personnel and directors or to allocate them to each individual.

24 Segment information

The Company believes that the disclosure of its revenue by activity is not relevant financial information as the various services provided by it to Group companies are not significantly different from each other. These activities, ever since the business line spin-off completed in 2008, are not, according to Law 17/2007, regulated electricity activities so that the Company is not required to provide the separate disclosures by activity stipulated under Royal Decree 437/1998 of 20 March 1998, enacting the rules for adapting the General Accounting Plan for electric sector enterprises.

25 Guarantees and other commitments extended to third parties and other contingent liabilities

At both year-ends, the Company, together with Red Eléctrica de España, was a joint and several guarantor of the USD 250 million of private bonds issued in the United States by Redeia Financiaciones and of Red Eléctrica Financiaciones' eurobond programme in the amount of up to 5.000 million euros. A total of 3,490 million euros had been issued under the latter at 31 December 2024 (2023: 2,990 million euros).

In addition, at both reporting dates, the Company, together with Red Eléctrica de España, was a joint and several guarantor of the Euro Commercial Paper (ECP) Programme issued by Red Eléctrica Financiaciones for up to 1.000 million euros. There were no drawdowns under that programme at either year-end.

At 31 December 2024, the Company had extended bank sureties to third parties in a nominal amount of 36,721 thousand euros (2023: 3,537 thousand euros). Those sureties are not expected to have any impact on the Company's equity.

26 Environmental disclosures

The Company had no assets of an environmental nature at 31 December 2024 or 2023, nor did it incur any environmental-related expenses in either year.

The Company is not party to any environmental lawsuits that could result in significant contingencies and did not receive any environmental grants in 2024.

27 Other information

The fees for financial statement audit and other services provided by the Company's auditor, Ernst & Young, S.L. (EY), in 2024 and 2023, are itemised below:

Thousands of euros	2024	2023
Audit services	199	192
Audit-related services	89	29
Other services	204	73
Total	492	294

Audit services in the table above include the fees corresponding to the audit of the separate financial statements of Redeia Corporación, S.A., in the amount of 17 thousand euros, and of the Group's consolidated financial statements, in the amount of 182 thousand euros.

Audit-related services include the reasonable assurance audit report on the effectiveness of the Group's ICFR system in accordance with ISAE 3000 (Revised) and the issuance of a comfort letter in relation to the Euro Medium Term Note (EMTN) programme. Other services include the fees for the assurance of the non-financial information included in the annual consolidated reports and services provided to the Group such as assurance of its Sustainability Report in accordance with ISAE 3000 (Revised), along with other review work related with greenhouse gas inventories and the green notes.

The amounts presented in the table above include all of the fees related to the services rendered in 2024 and 2023, regardless of when they were invoiced.

No other fees were accrued by firms related directly or indirectly with the lead auditor for professional services other than financial statement audit work in 2024 or 2023.

28 Share-based payments

In 2024, the Company delivered 99,417 shares to its employees with a fair value of 16.53 euros per share implying total expenditure during the year of 1,643 thousand euros. Of the total, 6,706 shares were delivered to key management personnel.

In 2023, the Company delivered 83,107 shares to its employees with a fair value of 14.90 euros per share implying total expenditure during the year of 1,238 thousand euros. Of the total, 6,587 shares were delivered to key management personnel.

The shares were valued at their quoted price on the day they were delivered.

The above share deliveries were carried out under the scope of authorisations given at the Company's Annual General Meetings and came from its treasury stock. The related expense was recognised under employee benefits expense in the statement of profit or loss.

29 Events after the reporting date

As disclosed in note 8, on 31 January 2025, Redeia, through its subsidiary, Redeia Sistemas de Telecomunicaciones S.A.U., agreed to sell Indra Sistemas S.A. its 89.68% interest in the share capital of Hispasat S.A. to Orbitude, S.L.U, a wholly-owned subsidiary of Indra.

The agreed sale price for that 89.68% interest in Hispasat is 725 million euros. The sale is subject to delivery of certain suspensive conditions and is expected to close in 2025.

30 Explanation added for translation to English

The abridged Financial Statement are presented on the basis of the regulatory financial reporting framework applicable to the Company in Spain. Certain accounting practices applied by the Company that conform to that regulatory framework may not conform to other generally accepted accounting principles and rules.

In the event of a discrepancy, the Spanish-language prevails for legal purposes.

Redeia Corporación, S.A. | 2024 financial statements 49

Management report

for the year ended 31 December 2024

Redeia Corporación, S.A.

1	Business performance. Significant developments	3
2	Key financial figures	3
3	Stock market performance and shareholder return	3
4	Own shares	5
5	Risk management	5
6	Environment	5
7	Research, development and innovation (RDI)	6
8	Our people	6
9	Excellence and corporate responsibility	8
10	Disclosures regarding average supplier payment term. Additional Provision Three - "Disclosure requirements" under Law 15/2010 of 5 July 2010	9
11	Events after the reporting date	9
12	Dividend policy	9
13	Outlook	9
14	Non-financial statement and sustainability information in compliance with Law 11/2018 of 28 December 2018	10
15	Annual Corporate Governance Report	10
16	Annual Report on Director Remuneration	10

The various sections of this management report contain certain forward-looking information reflecting projections and estimates and their underlying assumptions, statements referring to plans, objectives and expectations around future transactions, investments, synergies, products and services, as well as statements concerning future earnings and dividends and estimates made by the directors, based on assumptions they consider reasonable.

While the Company considers the expectations reflected in those statements to be reasonable, investors and holders of shares in the Company are cautioned that the forward-looking information and statements are subject to risks and uncertainties, many of which are difficult to foresee and generally beyond the Company's control. As a result of such risks, actual performance and developments could differ significantly from those expressed, implied or forecast in the forward-looking information and statements.

The forward-looking statements are not guarantees of future performance and have not been reviewed by the Company's external auditors or by other independent third parties. Investors and holders of shares in the Company are cautioned not to take decisions on the basis of forward-looking statements that refer exclusively to information available as at the date of this report. All of the forward-looking statements contained in this report are expressly subject to this disclaimer. The forward-looking statements included in this document are based on the information available as at the date of this management report. Unless required otherwise under applicable law, the Company undertakes no obligation to publicly update any forward-looking statement or revise its forecasts, whether as a result of new information, future events or otherwise.

In order to make it easier to understand the information provided in this document, certain alternative performance measures have been included. The definition of those alternative performance measures can be retrieved from https://www.redeia.com/es/accionistas-e-inversores/informacion-financiera/medidas-alternativas-rendimiento

1 Business performance. Significant developments

Since 2008, Redeia Corporación, S.A. (the Company) has been the parent (the Parent) of a group companies called Redeia (the Group). Its main activities are:

Managing the corporate group, which comprises equity investments in group companies and their investees.
Providing support services and other assistance to its investees.
Managing the Company's properties.

In line with the commitments undertaken by the Company in performing these activities, it strives to constantly create value for all of its shareholders and stakeholders.

2 Key financial figures

Profit after tax was 190.9 million euros in 2024, down 57.6% from 2023, due mainly to the decrease in dividends collected from Group companies and the impairment loss recognised against financial instruments. Underlying this performance:

Revenue amounted to 461.0 million euros, down 15.9% year-on-year due to the collection of fewer dividends from Group companies in 2024.

EBITDA¹ amounted to 385.7 million euros, 19.1% below the 2023 figure, due to the above-mentioned factors.

EBIT² decreased by 50.5% year-on-year to 232.8 million.

The Company paid 540 million euros of dividends in 2024, the same as in 2023.

Equity at the year-end stood at 3,396.7 million euros, down 8.6% from year-end 2023.

3 Stock market performance and shareholder return

All of the shares of the Company, as the Group's listed company, are quoted on the four Spanish stock exchanges and traded on the continuous market.

The Company is also part of the IBEX 35 index of blue chip stocks, with a weighting of 1.51% at year-end 2024.

At 31 December 2024 and 2023, the Company's share capital amounted to 270.5 million euros and was represented by 541,080,000 shares, with a unit par value of 0.50 euros, all of which were fully subscribed and paid.

¹EBITDA is calculated as the sum of revenue and self-constructed assets and other operating income less employee benefits expense, cost of sales and other operating expenses.

² EBIT is calculated as EBITDA plus grants related to assets recognised in profit or loss and impairment of and gains/(losses) on disposal of fixed assets less depreciation and amortisation, changes in the fair value of financial instruments, and impairment of and gains/(losses) on disposal of equity instruments.

At year-end, the free float was 70.22%, of which 20% related to the state industrial holding company, SEPI for its acronym in Spanish, 5% to Pontegadea Inversiones, S.L.³ , 4.64% to Blackrock (corresponding to the percentage of voting rights attached to the shares) and 0.13% to the stakes held by Board members and treasury stock.

The shareholder structure is as follows:

68.16% of the shares are in the hands of foreign and domestic institutional investors.
The state industrial holding company, SEPI, holds 20% of the shares.
Retail investors account for 11.71% of share capital.
The Company's treasury stock and shares held by other members of the Board of Directors account for 0.13%.

Redeia's share price stood at 16.50 euros at the close of trading on 31 December 2024. The share price gained 10.7% over the course of 2024, buoyed by the downtrend in interest rates throughout the year and the upcoming regulatory review of the electricity transmission businesses, which is expected to yield more favourable parameters, coupled with the high levels of capital expenditure anticipated in the regulated business in the coming years.

The share price fluctuated between a high of 17.59 euros, on 27 September 2024, and a low of 14.40 euros, on 9 February 2024.

A total of 283.8 million shares were traded on the Spanish continuous market during the year, which is equivalent to 52.5% of the number of shares comprising its share capital. Cash transactions amounted to 4,613.9 million euros.

³Amancio Ortega Gaona directly holds 99.99% of the voting rights of Pontegadea Inversiones, S.L.

4 Own shares

At a meeting on 31 March 2020, the Company's Board of Directors decided to suspend own share transactions as of 14 April 2020, except where such transactions relate to employee remuneration.

Consequently, only one transaction took place in 2024, involving the sale of 440,075 own shares associated with Group employee remuneration. The shares sold had a par value of 0.22 million euros and a cash value of 7.3 million euros.

At 31 December 2024, the Company held own shares representing 0.12% of its share capital; specifically it held 671,942 shares with a unit par value of 0.50 euros per share and an aggregate par value of 0.34 million euros, which it acquired at an average price of 17.53 euros per share (note 14 to the financial statements) and a market value of 11.1 million euros.

The Company is in compliance with all of its obligations under article 509 of the Corporate Enterprises Act which stipulates, in relation to shares listed on an official exchange, that the par value of any own shares acquired, plus those already held by the Parent and its subsidiaries, may not exceed 10% of share capital. The subsidiaries do not hold any own shares or any Parent shares.

5 Risk management

Redeia Corporación is the Parent of the Group and has a Comprehensive Risk Management system in place designed to ensure that the risks that could affect achievement of the Group's strategies and objectives are systematically identified, analysed, assessed, managed and controlled, framed by uniform criteria and within the established tolerance level thresholds. The Comprehensive Risk Management Policy was approved by the Board of Directors of the Company, as Parent of the Group, on 27 July 2021.

This Comprehensive Risk Management System, the Policy and the General Procedure regulating it are based on the COSO ERM 2017 (Committee of Sponsoring Organizations of the Treadway Commission) Enterprise Risk Management - Integrated Framework.

The Corporate Risk Map depicts the Group's, including the Company's, most significant risks and is prepared on the basis of a bottom-up methodology, whereby the risks are identified, analysed and assessed by the different organisational units before being escalated for validation by the executive officers, managing directors and corporate heads, and then ultimately presented to the Chair of the Group, the Executive Committee, the Audit Committee and the Board of Directors.

The Board of Directors is charged with approving the Comprehensive Risk Management Policy and the Group's accepted risk tolerance level, while the Audit Committee is tasked with overseeing the effectiveness of the Comprehensive Risk Management system. The Executive Committee is responsible for ensuring that the Group's relevant risks and mitigating action plans them are adequately monitored.

The Comprehensive Risk Management Policy also covers financial risk management, as explained in note 9 Financial risk management policy of the financial statements for 2024. The Company's Sustainability Report provides further details of the Group's main risks at present, as well as risks which could emerge in the future.

The main risks to which the Company and the Parent of the Group are exposed and which could affect achievement of their objectives are: regulatory risks (including tax risks), as the Group's main businesses are closely regulated; operational risks, primarily through their activities in the electricity and telecommunications businesses; financial risks; market risks; and environmental risks.

6 Environment

The Company had no assets of an environmental nature at 31 December 2024, nor did it incur any environmental-related expenses during the year.

The Company is not party to any environmental lawsuits that could result in significant contingencies and did not receive any environmental grants in 2024.

7 Research, development and innovation (RDI)

The Company is not involved in any research, development and innovation (RDI) activities.

8 Our people

Work continued throughout 2024 on the model for the sustainable management of diverse and committed talent, an essential part of the People and Culture Department's Operational Plan, which uses a systematic approach to attract, discover, develop, train, transform and retain talent and exchange knowledge. The model pursues excellence to ensure that the Company remains a national and international benchmark through six lines of action, with the first - transformational leadership - being key to the achievement of the others: attracting talent, learning, development, knowledge management and differentiation.

Relying on digitalisation, technology, innovation, sustainability and diversity, the Company seeks to become a leader in the transformation of talent and corporate culture while involving society in the organisation's challenges, fostering actions that motivate and inspire both within the Company and beyond.

This ongoing transformation is driven and galvanised through leadership and people development through our Leadership Model and Skills Model, which set out how to achieve the objectives and goals set. The aim of all this is to maintain high commitments that result in excellent employee contributions so as to ultimately deliver the objectives set out in the 2022-2025 Strategic Plan.

On this front, in 2024 efforts were made to:

Position the Company's leaders to spearhead the transformation so that they can propel and develop selfleadership habits among others to foster responsibility, self-management and self-learning. This is carried out through a 360 degree assessment process that identifies areas for improvement and deploys resources and development programmes, such as the new Lidera programme, designed on the basis of the leadership model.
Plan talent needs, by identifying new profiles and positions, treating diversity and inclusion as competitive advantages that bring opportunities and benefits to both the organisation and broader society through the creation of specific programmes for the new profiles identified.
Develop talent within the organisation through programmes such as Talentia for employees with managerial potential, Gestores for those tasked with people management processes, and specific programmes for data analysts and other business IT roles.
Foster self-development, by offering a bespoke selection of initiatives that allow employees to manage their own development, and by engaging leaders in the achievements of their teams. The new Redeia Skills Model, first rolled out in 2022, continued to be implemented throughout the year, so as to align growth with the Company's objectives.
Implement the Development Recommendations so that employees can work, either autonomously or accompanied, on the skills chosen in each case in response to the Skills Model. These recommendations include internal mobility (through temporary placements, coverage of vacancies and international mobility), postings to projects and training actions.

a) A stable, engaged and highly qualified team

At year-end 2024, the Company had a headcount of 434 employees. The Company's commitment to the professional development of its personnel and to maintaining their employability during their tenure is reflected in the high percentage of employees on permanent contracts (nearly 100%), with the focus on employability and functional mobility as a lever for growth and professional development.

b) Diversity

The Company's commitment to diversity, inclusion and non-discrimination is articulated in its new 2023-2025 Comprehensive Diversity Plan, which is aligned with both the Strategic Plan and the 2030 Sustainability Commitment. The purpose of the plan is to inspire and be a benchmark, both within the organization itself and the wider social, labour and human environment, through the commitment to talent diversity, social inclusion, employment and non-discrimination, breaking down stereotypes and cultural barriers. The goals of the Comprehensive Diversity Plan are to:

Embed diversity across all Redeia processes, especially people management, taking account of everything that this implies (gender, age, disability, etc.) and thus instilling a culture of diversity, equal opportunities, equity, inclusion and non-discrimination.
Extend the diversity, equity and inclusion strategy across the entire value chain.
Partner with official organisations, academic institutions, stakeholders and other social agents in campaigns, observatories and projects that will allow the Company to become a benchmark social agent that helps to create a more diverse society.
Reduce any inequalities that may arise (corporate and wage or digital gaps).
Put mechanisms in place to prevent discriminatory bias.
Support the inclusion of socially excluded and/or vulnerable people within the job market.

Gender equality is a key topic under the new Comprehensive Diversity Plan and includes the principles of equal employment opportunities, the promotion of women to positions of responsibility, equal pay between men and women, the promotion of shared caregiving responsibilities, the prevention of harassment on moral, sexual and gender grounds and the prevention of gender-based violence. Performance in these areas is monitored using indicators to measure progress towards achieving the stated objectives.

c) Talent management

In 2024, the Company continued to work on the talent management model, an essential part of the People and Culture Department's Operational Plan, which uses a systematic approach to attract, discover, develop, train, transform and retain talent and exchange knowledge. The model pursues excellence to ensure that the Company remains a national and international benchmark through five lines of action:

Attracting, selecting and integrating talent: commitment to the future.
Identifying talent: engagement.
Professional training and development plans: virtual campus.
Knowledge management: transfer plan.
Transformational leadership.

Learning is provided through Campus, which serves as a springboard for rolling out the organisation's strategy, values and culture. It is a meeting place and a space for learning and development, helping to manage stakeholder knowledge and covering the various targeted learning areas.

d) Management-employee relations

In 2024, the role of the management team as the main channel for internal communication with the teams was further consolidated and specific leadership targets were added to improve matters further.

Notably, the Company has a listening system which is designed to allow it to rapidly gather feedback from employees about specific corporate topics in order, ultimately, to better understand employee wellbeing and motivation. This model includes tools for effectively measuring employee satisfaction and other important aspects, including motivation and sense of belonging.

On the collective bargaining front, Redeia actively pursues dialogue between management and worker representatives around labour conditions, aware that this approach has a positive impact on the parties involved and on society in general, as well as translating into improved working conditions.

The aim of these negotiations is to establish the parties' respective rights and duties and to remain in constant dialogue with employees' legal representatives and their respective union organisations. Against that backdrop, in 2024, 10 meetings took place between the various committees and the legal representatives of the employees of Redeia Corporación, S.A.

e) Health and safety

Through the engagement and leadership of the management team, the Company promotes best practices in safety, health and wellness. Its healthy company management model has evolved with the new AENOR standard towards a healthy organisation model and is fully aligned with the Strategic Plan, the People Operational Plan and the 2030 Sustainability Commitment.

This system seeks to provide guidelines, not only for people in the organisation to view working conditions in a positive light, thereby fostering a safe and healthy workplace, but also so that other stakeholders from broader society (e.g. users, customers, suppliers, families) can share and reap these benefits, thereby giving rise to a new wellness- and sustainability-driven leadership strategy.

In 2024, progress was made on executing the 2024-2025 Workplace Safety and Wellness Plan, which is articulated around four major lines of initiative: culture and leadership, innovation and digitalisation, wellness and stakeholder engagement. These lines of initiative not only seek to enhance employees' health and safety but to foster a broader culture of prevention and wellbeing. To that end, the plan promotes best practices around occupational risks on the job. Its goal is to go beyond legal compliance by training, educating and raising awareness around duties and responsibilities and getting all employees, partners and suppliers involved in the occupational safety effort.

f) Work-life balance management

True to its commitment to ensuring a healthy work-life balance, the Company continues to build to a work-life balance management model based on continuous improvement.

The Company delivered 84% of the objectives set for 2024, with the work-life balance officer playing a key role by providing personalised responses to 90% of the personal situations raised by workers.

The work-life balance management model also happens to be one of the central pillars of the Healthy Organisation model and the Diversity model, and includes over 70 work-life balance measures and related actions.

9 Excellence

Redeia has a Policy of Excellence, which was updated in 2021. It sets out the Company's principles and commitment to excellence in management, which is focused on the creation of sustainable value that meets or surpasses the requirements and expectations of the stakeholders present within Redeia's ecosystem, acting as a lever for achieving truly excellent results both now and down the line.

In 1999, the Company adopted the EFQM (European Foundation for Quality Management) excellence management model as a tool to improve management, under which external assessments are performed on a regular basis. In 2022, Redeia performed an assessment of the Company and Red Eléctrica de España, S.A.U. in accordance with the EFQM 2020 model, obtaining a score of above 700 points and earning, in the process, the EFQM 700+ Seal of Innovation and Sustainability Excellence.

Redeia's commitment to excellence is evidenced by the external certifications awarded by renowned certification entities testifying that the organisation successfully implements certifiable management systems. Redeia has quality assurance systems certified under ISO 9001 in place at the Company and the main subsidiaries.

Elsewhere, Redeia's criminal and anti-bribery compliance system is also certified under the UNE 19601 criminal compliance management system and UNE 37001 anti-bribery management system standards. A new milestone in 2024 was the certification of Redeia's whistleblowing management system under EA 37002, aligned with ISO 37002.

10 Disclosures regarding average supplier payment term. Additional Provision Three - "Disclosure requirements" under Law 15/2010 of 5 July 2010.

In accordance with the Spanish Accounting and Auditing Institute (ICAC) resolution of 29 January 2016 regarding disclosures that must be included in the notes to financial statements regarding the average supplier payment period in commercial transactions, as amended by Law 18/2022 of 28 September 2022, the average supplier payment period in 2024 was 36 days.

The disclosures required by this resolution are provided in note 19 to the Company's 2024 financial statements.

11 Events after 31 December 2024

On 31 January 2025, the Company, through its subsidiary, Redeia Sistemas de Telecomunicaciones S.A.U., agreed to sell Indra Sistemas S.A. its 89.68% interest in the share capital of Hispasat for 725 million euros. The transaction close is subject to approval by Spain's Council of Ministers, the anti-trust authorities and other regulators; it is expected to close in 2025. In light of that transaction, the Company has recognised an impairment loss of 143 million euros against its equity investment in Redeia Sistemas de Telecomunicaciones S.A.U. in order to restate that investment to its fair value.

12 Dividend policy

Redeia's dividend policy is outlined in its 2021–2025 Strategic Plan, which initially envisioned a dividend payment of 1 euro per share until 2022, and a floor of 0.80 euros per share from 2023. The Group's stronger financial situation —largely due to the sale of the stake held in Redeia Infraestructuras de Telecomunicación allowed it to raise the shareholder return to 1 euro per share in 2023.

The dividends paid in 2024 out of prior-year profit amounted to 539.97 million euros.

The dividend to be paid from 2024 earnings proposed by the Board of Directors and pending approval by the Company's shareholders at the Annual General Meeting amounts to 0.80 euros per share.

That dividend will be paid in two instalments: an interim dividend already paid in January 2025 and a final dividend payable halfway through the year once the financial statements have been approved at the Annual General Meeting.

13 Outlook

As regards the management of the various businesses, the Company, as the Parent of Redeia, plans to continue to implement its model articulated around balancing two major lines of action: operations subject to market risk which offset the concentration of regulatory risk; and regulated operations which offset market risk. Along these lines, it will continue to perform the role of Spanish TSO, helping to make the energy transition in Spain a reality; continue to foster connectivity as a leading operator of fibre optic telecommunications infrastructure; consolidate its international business; and invest in technological acceleration and innovation.

Executing the strategy, underpinned by efficiency, digital transformation and personnel development, will enable the Redeia to adapt to the new, stricter regulatory and remuneration environment, and to generate more ways of creating value.

The Company will work on guaranteeing electricity supply and fibre optic connectivity and upholding its commitment to maximising value for its shareholders, offering an attractive dividend yield and generating value through efficient management of its activities, weighing up alternatives for growing the business and maintaining a sound capital structure. To do so, it will continue to pursue long-term value creation, promoting a fair ecological transition based on sustainability principles and contributing to social and regional cohesion.

The Company continues to make inroads on delivering its 2030 Sustainability Commitment and maximising its contribution to the achievement of global targets, chief of which are the United Nations Sustainable Development Goals (SDGs). It will increase its social and environmental contributions across all the geographical and business areas in which it deploys its infrastructures, maximising the positive impact beyond its investment projects and providing solutions to the structural challenges that perpetuate territorial, generational, gender and digital inequality.

14 Non-financial information statement and sustainability information in compliance with Law 11/2018 of 28 December 2018

Regarding Spanish Law 11/2018 of 28 December 2018, amending Spain's Code of Commerce, the consolidated text of the Corporate Enterprises Act enacted by Royal Legislative Decree 1/2010 of 2 July 2010 and Spain's Audit Act (Law 22/2015 of 20 July 2015) regarding non-financial and diversity information, note that the Company's non-financial information statement and sustainability information are included in the Group's 2024 consolidated management report placed on file at the Madrid Companies Register.

15 Annual Corporate Governance Report

The annual corporate governance report is an integral part of the management report and is available at: https://www.cnmv.es/portal/consultas/ee/informaciongobcorp.aspx?nif=A-78003662&lang=en

16 Annual Report on Director Remuneration

The annual report on director remuneration is an integral part of the management report and is available at: https://www.cnmv.es/Portal/Consultas/EE/InformacionGobCorp.aspx?TipoInforme=6&nif=A-78003662

AI Terminal

Red Electrica Corporacion S.A.

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Financial statements

Redeia Corporación, S.A. Balance sheet at 31 December 2024

Redeia Corporación, S.A. Balance sheet at 31 December 2024

Redeia Corporación, S.A. Statement of profit or loss for the year ended 31 December 2024

Redeia Corporación, S.A. Statement of total changes in equity for the year ended 31 December 2024

Redeia Corporación, S.A.

Contents

1 Company information

2 Basis of preparation

a) True and fair view

b) Mandatory accounting policies not applied

c) Use of estimates and assumptions

d) Comparative information

e) Going concern

3 Proposed appropriation of profit

Appropriation to:

4 Material accounting policies

a) Intangible assets

b) Property, plant and equipment

c) Investment properties

d) Leases

e) Financial assets and liabilities

• Financial assets

• Financial liabilities

f) Cash and cash equivalents

g) Asset impairment

h) Capital and reserves

• Other provisions

j) Transactions in currencies other than the euro

k) Derivative financial instruments and hedging transactions

l) Fair value measurement

m) Income and expenses

n) Tax matters

o) Insurance

p) Share-based payments

q) Intragroup transactions

5 Intangible assets and PP&E

5.1 Intangible assets

5.2 Property, plant and equipment

6 Investment properties

7 Operating leases

8 Investments in group companies and associates

Redeia Corporación, S.A.

Breakdown of equity investments at 31 December 2024

Redeia Corporación, S.A.

Breakdown of equity investments at 31 December 2023

9 Financial risk management policy

a) Market risk

• Interest rate risk

• Currency risk

• Credit and liquidity risk

10 Financial instrument analysis

a) Analysis by category

• Financial assets

• Financial liabilities

b) Analysis by maturity

• Financial assets

• Financial liabilities

11 Derivative financial instruments

12 Current and non-current financial assets

13 Trade and other receivables

14 Equity

a) Capital risk management

b) Capital and reserves

• Share capital

• Reserves

• Own shares

• Profit for the year

• Interim dividend and motion for the distribution of dividends

• Other equity instruments

c) Valuation adjustments