Slide 1: Results Presentation 2023
Results Presentation 2023 22 February 2024
Slide 2: Legal Notice
Results Legal Notice Presentation 2023 DISCLAIMER This document has been prepared by Iberdrola, S.A. exclusively for use during the presentation of financial results of the 2023 fiscal year. As a consequence thereof, this document may not be disclosed or published, nor used by any other person or en
Slide 3: Legal Notice: Forward-Looking Statements
Results Legal Notice Presentation 2023 FORWARD-LOOKING STATEMENTS This communication contains forward-looking information and statements about Iberdrola, S.A., including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with
Slide 4: Highlights of the period
Results Presentation 2023 Highlights of the period www.iberdrola.com |4
Slide 5: Continued growth and execution led Net Profit to EUR 4,803 M
Results Highlights of the period Presentation 2023 Continued growth and execution led Net Profit to EUR 4,803 M (+11%)… Record investments of EUR 11,382 M, up +6% ✓ Purchases of EUR 18,111 M to several thousands of suppliers worldwide ✓ 4,653 new hires ✓ Global Tax contribution of EUR 9,281 M (+24%)
Slide 6: Gross investments grew +6% to a record EUR 11,382 M
Results Investments Presentation 2023 Gross investments grew +6% to reach a new record of EUR 11,382 M… Investments by business Investments by geography Corporate & other IEI Other Energy 2% Eur 1,992 M Spain Production & (+24% vs. 2022) Eur 2,323 M Customers (-22% vs. 2022) 5% Renewables (-22% vs.
Slide 7: EBITDA increases +9% to EUR 14,417 M
Results EBITDA Presentation 2023 EBITDA increases +9% to EUR 14,417 M… EBITDA evolution NETWORKS • Annual tariff adjustments Eur • Positive impact from new Regulatory Frameworks in the US Eur 14,417 M (NY Rate Case) and the UK (RIIO-ED2) +9% 13,228 M • Protection from inflation in the UK, Brazil and
Slide 8: Networks: RAB increases +8% to EUR ~42,210 M
Results Networks Presentation 2023 RAB increases +8% to EUR ~42,210 M driven by growth in the UK, the US and Brazil… RAB by Geography (y-o-y) Business highlights Spain UK US ‣ Investments limited by regulatory cap: first steps to increase incentives to investments EUR ~10,343M EUR ~12,971M +8% y-o-y
Slide 9: Energy Production & Customers: selective growth in renewables
Results Energy Production & Customers Presentation 2023 Selective growth in renewables to balance our generation / supply position… Renewables: installed capacity by technology and total investment implied Business highlights Iberia MW ‣ Increasing our alliance with Norges Bank up to EUR 2,000 M Off
Slide 10: Routes to Market
Results Routes to Market Presentation 2023 Leading the European PPA Market and increasing market share in Iberia Increasing PPA Portfolio with TIER-1 customers… …reinforcing our strength in retail market Iberia • Iberdrola leading the European PPA market with ~1,000 MW contracted in 2023 (7% of the
Slide 11: Iberdrola Mexico Transaction
Results Iberdrola Mexico Transaction Presentation 2023 All approvals for Mexico transaction received Sale of 55% of our Mexico’s business to Mexico Infrastructure Partners (MIP) Transaction includes all gas plants that supply energy to CFE Past litigation trend ended, with plants stopped for regulat
Slide 12: Iberdrola Mexico Post-Transaction
Results Iberdrola Mexico Post-Transaction Presentation 2023 Maintaining all commercial activity and renewable production (45% of the business)… Iberdrola Mexico post transaction Capacity # plants ~50% Sonora Renewables 1,233 MW 9 renewables Coahuila Nuevo León Wind 590 MW 6 Solar PV 643 MW 3 Tamauli
Slide 13: Avangrid and Neoenergia Results (Local GAAP)
Results Avangrid and Neoenergia Results (LOCAL GAAP) Presentation 2023 AVANGRID’S EBITDA REACHES USD 2,700 M (+10%) NEOENERGIA’S EBITDA REACHES BRL 12,359 M (+7%) Adjusted Net Profit of USD 808 M Net Profit of BRL 4,461 M Record Investments of USD 3,070 M Investments reached BRL 8,903 M BUSINESS HIG
Slide 14: Improving cash flow & financial solidity
Results Improving cash flow & financial solidity Presentation 2023 Improving cash flow and financial solidity… Operating cash flow – FFO (Eur M) Adj. Net Debt (Eur Bn) FFO/Adj. Net Debt ~25.8% 11,096 47.8 25.4% ~250 bp1 Hydro 826 +8%1 43.7 Hydro canon canon 23.2% 42.0- 42.5 10,297 23.3% 2022 2023 20
Slide 15: Shareholder Remuneration
Results Shareholder Remuneration Presentation 2023 • 2023 Interim shareholder Proposal remuneration to increase 2023 dividend by 10.8%of Eur0.55/Share… to Eur 0.20/share (+11%) Eur 0.550/Share +10.8% Eur 0.496/Share Eur Supplementary 0.3481 Eur dividend 0.316 Interim Eur Eur dividend 0.180 0.202 202
Slide 16: ESG+F: Increasing Social dividend
Results ESG+F Presentation 2023 • xxx Increasing Social dividend… CO2 emissions of 55 grs per kWh in Europe (-80% vs. peers) 4,653 new hires in 2023 to reach a total workforce of 42,276 employees Purchases of EUR 18,111 M to several thousands of suppliers worldwide… …who already employ ~500,000 peop
Slide 17: Analysis of results
Results Presentation 2023 Analysis of results www.iberdrola.com | 17
Slide 18: Income Statement / Group
Results Income Statement / Group Presentation 2023 EBITDA up 9% to EUR 14,417 M, and Net Profit increases 11% including two one-offs of EUR 141 M in Q4: efficiency plans (EUR 90 M1) and a provision expected to be recovered in 2024 (EUR 51 M2) EUR M 2023 2022 % Revenues 49,335 53,949 -8.6 Gross Margi
Slide 19: Gross Margin / Group
Results Gross Margin / Group Presentation 2023 Gross Margin up 15% to EUR 23,302 M… Revenues (EUR M) Procurements (EUR M) 53,949.4 -8.6% 49,334.9 33,750.0 -22.9% 26,033.4 -EUR 4.6 Bn -EUR 7.7 Bn 2022 2023 2022 2023 … driven by higher production and lower procurement costs www.iberdrola.com | 19
Slide 20: Net Operating Expenses / Group
Results Net Operating Expenses / Group Presentation 2023 Excluding extraordinary, reconciliation impacts in the US, Net Personnel Expenses increases 7.4% and External services 4.8% Net Operating Expenses (EUR M) vs 2022 (%) 2023 2022 vs 2022 (%) Exc. Extraordinary and reconciliation impacts Net Pers
Slide 21: Levies / Group
Results Levies / Group Presentation 2023 Levies grows 56% to EUR 2,748 M mainly due to Spain, representing 62% of total group levies 2,747.9 +55.9% 1,762.2 ex Spain 123% 100% 100% ex Spain Spain 22% Spain Levies NOE1 Levies NOE1 ex Spain ex Spain Spain Spain 2022 2023 Levies/NOE1 in Spain is 123% wh
Slide 22: Levies / Spain
Results Levies / Spain Presentation 2023 Levies in Spain grows 99% to EUR 1,703 M representing 86% of total group increase in levies SPANISH LEVIES EUR M +99.1% Clawback 225 Temporary 1.2% Revenue tax 213 levies Hydro canon 191 Spain Social bonus 274 1,702.7 Nuclear tax 203 Ecotax 143 Spain Nuclear
Slide 23: Results by Business / Networks
Results Results by Business / Networks Presentation 2023 Networks Reported EBITDA reaches EUR 6,011 M, +9% on a recurring basis excluding… Brazil 32% 28% Spain 6,011.0 20% United Kingdom United States 20% … FY’22 positive one-offs in US (EUR 605 M) and FY’23 negative one-offs in Brazil (EUR -450 M)
Slide 24: Results by Business / Networks
Results Results by Business / Networks Presentation 2023 EBITDA EUR 1,552.7 M (-3.4%): SPAIN • Affected by the efficiency plan in Q4’23 (EUR -33 M), with operating performance in 2023 in line with 2022. EBITDA GBP 1,071.6 M (+15.0%): UNITED KINGDOM • Higher contribution both in Transmission and Dist
Slide 25: Results by Business / Energy Production and Customers
Results Results by Business / Energy Production and Customers Presentation 2023 Energy Production and Customers EBITDA reaches EUR 8,601 M (+28%) 9% RoW Mexico 14% Brazil 5% United States 10% 50% Spain1 8,601.2 United Kingdom 24% 1. 1.2% revenue tax in Spain included in corporation while for present
Slide 26: Results by Business / Energy Production and Customers
Results Results by Business / Energy Production and Customers Presentation 2023 EBITDA retained assets USD 411.6 M: • Higher results from thermal assets despite lower contribution from renewables, resulting in USD 89 M MEXICO more than in 2022. EBITDA disposed assets USD 437.4 M: • Lower contributio
Slide 27: Results by Business / Energy Production and Customers
Results Results by Business / Energy Production and Customers Presentation 2023 UNITED EBITDA USD 741.4 M (flat excluding offshore break-up costs1): STATES • Better performance in renewables. Break-up costs at offshore wind facilities1 drive EBITDA down 2.4 %. EBITDA BRL 1,879.8 M (-13.9%): BRAZIL •
Slide 28: EBIT / Group
Results EBIT / Group Presentation 2023 EBIT grows 12% to EUR 8,973 M EBIT (EUR M) D&A and Provisions (EUR M) 8,973.1 7,983.9 +12.4% -5,244.1 +3.8% -5,444.3 -565 Provisions -741 -4,703 -4,680 D&A 2022 2023 2022 2023 D&A and provisions up 3.8% to EUR 5,444 M, driven by business growth and bad debt evo
Slide 29: Net Financial Results / Group
Results Net Financial Results / Group Presentation 2023 Net Financial Results up EUR 349 M to EUR 2,187 M, due to higher average debt and interest rates, partially offset by FX derivatives results and capitalized interests NET FINANCIAL RESULT (EUR M) COST OF DEBT -303 +128 -194 -2,187 +70 bps 4.97%
Slide 30: Financial ratios and Adjusted Net Debt / Group
Results Financial ratios and Adjusted Net Debt / Group Presentation 2023 FFO / Adjusted Net Debt at 23.2% in line with last year excluding hydro canon recovery in 20221 FFO grows 8% to EUR 11,096 M excluding hydro canon recovery in 20221 ADJUSTED CREDIT METRICS ADJUSTED NET DEBT (EUR Bn) Proforma 20
Slide 31: Financial strength
Results Financial strength Presentation 2023 Extensive sources of financing provides flexibility to target the markets with the right timing achieving very favorable conditions NEW DEALS SIGNED IN 2023: EUR 14,705 M TOTAL ESG PORTFOLIO: 68% of the total portfolio TEI Hybrid Bond EUR 1,094 M EUR 1,70
Slide 32: Net Profit / Group
Results Net Profit / Group Presentation 2023 Reported Net Profit grows 10.7% to EUR 4,803 M EUR M 2023 2022 vs’22 (%) EBIT 8,973.0 7,983.9 +12.4% - Net Financial Expenses -2,186.6 -1,837.5 +19.0% - Equity Method 217.8 74.5 +192.5% - Corporate Tax -1,610.0 -1,161.3 +38.6% - Minorities -591.5 -720.9 -
Slide 33: Guidance 2023 / Group
Results Guidance 2023/ Group Presentation 2023 Stripping out the effect from asset rotation, Net Income reaches EUR 4,809 M (+10.8%) … +10.8% 4,803 +98 -91 4,809 +10.7% 4,339 Mexico Brazil transaction1 GIC + Swap Eletrobras 2022 reported 2023 Reported 2023 Net Income Net Income Net Income Asset rota
Slide 34: Conclusions
Results Presentation 2023 Conclusions www.iberdrola.com | 34
Slide 35: Conclusions: Outlook 2024
Results Conclusions: Outlook 2024 Presentation 2023 2024 OUTLOOK: 5 -7% GROWTH IN NET PROFIT with dividend growing in line with results ▶ EUR 12 Bn of new investments Growth in Networks: Growth in Renewables: • US: New Rate Cases • Offshore wind: 600 offshore wind MW • UK: RIIO-ED2–T2 installed in 2
Slide 36: Iberdrola Business Model: Conclusion
Results Iberdrola Business Model: Conclusion Presentation 2023 An integrated business model that combines growth and predictability… Growth and predictable margins from Networks: 45-50% of EBITDA (+10 pp vs EU average) ▪ Investments+efficiency= 8% CAGR in EBITDA ‘20-’23 + Balanced generation-supply
Slide 37: Annex
Results Presentation 2023 Annex www.iberdrola.com | 37
Slide 38: Liquidity and maturities
Results Liquidity and maturities Presentation 2023 As of today, liquidity totals EUR 20.9 bn1 covering 27 months of financing needs with an average life of debt close to 6 years 22,478 Cash 3,733 Available financing 2,426 Credit lines 6,422 5,815 14,736 4,759 4,153 3,704 2024 2025 2026 2027 2028 202
Slide 39: Diversified financing portfolio at competitive rates
Results Diversified financing portfolio at competitive rates Presentation 2023 Our strategy of diversification in funding sources provides flexibility to tap the market… % DEBT BY INSTRUMENT FINANCIAL SOURCES Bond market Bank loans • Main source of long-term financing. 15% • Strong capacity due to l
Slide 40: ESG financing
Results ESG financing Presentation 2023 Out of the EUR 14.71 Bn raised in 2023, EUR 13.31 Bn correspond to new ESG financing for a total portfolio of EUR 54.4 Bn in ESG transactions NEW ESG DEALS 2023: EUR 13,343 M TOTAL ESG FINANCING: EUR 54,449 M Sustainable Commercial Sustainable Paper 5.000 Prod
Slide 41: ESG
Results ESG Presentation 2023 2023 2025e 2030e Specific emissions (global mix) Carbon Neutral in electricity generation in 2030 g CO2 /kWh 77 <70 Carbon neutral1 % assets with biodiversity assessment Biodiversity: Net positive impact in 2030 and Neutrality Plan 0% 20% 100%/ Net Positive Trees, in Mi
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