Slide 1: Results Presentation Nine Months
RESULTS PRESENTATION Nine Months 26 October 2022
Slide 2: Legal Notice: Disclaimer
Legal Notice DISCLAIMER ▪ This document has been prepared by Iberdrola, S.A. exclusively for use during the presentation of financial results of the nine- month period ended on 30 September 2022. As a consequence thereof, this document may not be disclosed or published, nor This document and the inf
Slide 3: Legal Notice: Forward-Looking Statements
Legal Notice 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 respect to future opera
Slide 4: Agenda: Highlights of the period
Agenda Highlights of the period | www.iberdrola.com |4
Slide 5: Highlights of the period
Highlights of the period NET PROFIT OF EUR 3,104 M DESPITE 14% DECREASE IN SPAIN… EBITDA of EUR 9,529 M (+17%), with growth in all geographies except Spain Operating cash flow reaches EUR ~8,200 M, up 28% Net Profit up 29%, as 9M 2021 results were affected by provisions related with change in UK Cor
Slide 6: EBITDA increases 17% to EUR 9,529 M
EBITDA EBITDA INCREASES +17% TO EUR 9,529 M WITH POSITIVE EVOLUTION IN ALL GEOGRAPHIES EXCEPT SPAIN BREAKDOWN BY BUSINESS NETWORKS • Higher asset base in all geographies • Tariff increases in USA and Brazil 9,529 50% Networks • Regulatory frameworks protecting from higher inflation 50% Energy EUR M
Slide 7: Investments
Investments GROSS ORGANIC INVESTMENTS OF EUR ~7,600 M (+14%) WITH ~90% ALLOCATED IN RENEWABLES AND NETWORKS 9M 2022 GROSS INVESTMENTS BY COUNTRY 9M 2022 GROSS INVESTMENTS BY BUSINESS EUR M Weight Other Energy Production Corporate & other USA 1,897 25% & Customers 1% Spain 1,893 25% Spain 5% Mexico 3
Slide 8: Business highlights
Business highlights • USA: • Rate Cases for NY, ME, CT & MA filed, with negotiations ongoing • UK: • Ongoing conversations on RIIO-ED2 framework for 5 years starting in apr-23’; implementation of RIIO-T2 2021-26 progressing as expected NETWORKS • Transmission: Ofgem’s approval of new Eastern Link •
Slide 9: Current context: A resilient business model
Current context: Iberdrola response A RESILIENT BUSINESS MODEL… Positive impact of exchange rates due to well-balanced geographic diversification Growth based on Networks and Renewables Commodity prices ~90% of production already sold for 2023, ~70% for 2024 and 50% for 2025 in Spain BUSINESS Inflat
Slide 10: Current context: Proactive contribution to alleviate the crisis
Current context: Iberdrola response …AND A PROACTIVE CONTRIBUTION TO ALLEVIATE THE CURRENT CRISIS Measures taken by Iberdrola in the last months show awareness and sensitivity to the impact of the crisis on families and industries ➢ Maintaining stable prices to our customers based on our zero-emissi
Slide 11: Avangrid and Neoenergia Results
Avangrid and Neoenergia Results STRONG PERFORMANCE OF AVANGRID AND NEOENERGIA,… AVANGRID (USGAAP) NEOENERGIA (LOCAL GAAP) USD M BRL M +11% 2,1081 +7% 7,449 1,8971 6,939 Investments 9M 2021 9M 2022 9M 2021 9M 2022 USD M BRL M +15% 3,782 734 3,290 +35% Net Profit 543 9M 2021 9M 2022 9M 2021 9M 2022 …P
Slide 12: Agenda: Analysis of results
Agenda Analysis of results | www.iberdrola.com | 12
Slide 13: Income Statement
Income Statement EBITDA reaches EUR 9,529 M, Net Profit EUR 3,104 M and FFO of EUR 8,204 M EUR M 9M 2022 9M 2021 % Revenues 37,903 27,999 +35.4 Gross Margin 14,656 12,586 +16.4 Net Operating Expenses -3,791 -3,153 +20.2 Levies -1,335 -1,268 +5.4 EBITDA 9,529 8,165 +16.7 EBIT 5,663 4,781 +18.5 Net Fi
Slide 14: Gross Margin
Gross Margin Gross Margin up 16%, to EUR 14,656 M, and 9% excluding FX impact REVENUES (EUR M) PROCUREMENTS (EUR M) 37,903.3 +35.4% 27,999.8 +50.8% 23,247.4 15,413.9 9M 2021 9M 2022 9M 2021 9M 2022 Revenues up 35%, to EUR 37,903 M, and Procurements up 51%, to EUR 23,247 M www.iberdrola.com | 14
Slide 15: Net Operating Expenses
Net Operating Expenses Net Operating Expenses up 20%, to EUR 3,791 M, … Net Operating Expenses (EUR M) 9M 2022 9M 2021 vs 9M ’21 (%) Net Personnel Expenses -1,881.0 -1,679.8 +11.9% External Services -2,522.6 -2,131.6 +18.3% Other Operating Income 612.1 658.0 -7.0% Total Net Operating Expenses -3,791
Slide 16: Results by Business / Networks
Results by Business / Networks Networks EBITDA grows 21.5%, to EUR 4,778 M 22% Spain Brazil 30% 4,777.5 17% United Kingdom United States 31% www.iberdrola.com | 16
Slide 17: Results by Business / Networks
Results by Business / Networks EBITDA EUR 1,039.0 M (-16.9%): SPAIN • EUR -206 M negative impact related to a legal case. EBITDA BRL 7,839.9 M (+20.3%): BRAZIL • Growth driven mainly by tariff adjustments in Distribution (BRL +1,304 M). EBITDA IFRS USD 1,602.3 M (+48.7%): • USD +550.1 M positive one
Slide 18: Results by Business / Energy Production and Customers
Results by Business / Energy Production and Customers Energy Production and Customers EBITDA up 15%, to EUR 4,751 M RoW 7% Mexico 14% Brazil 6% 4,750.6 48% Spain United States 11% 14% United Kingdom www.iberdrola.com | 18
Slide 19: Results by Business / Energy Production and Customers
Results by Business / Energy Production and Customers EBITDA EUR 2,296.5 M (+12.5%): SPAIN • Moderate EBITDA growth, despite high price environment (spot price +138%), as a consequence of Group’s fixed price sales and lower renewable production. EBITDA USD 535.1 M (-18.0%): UNITED • Positive impact
Slide 20: Results by Business / Energy Production and Customers
Results by Business / Energy Production and Customers EBITDA USD 708.8 M (+3.8%): MEXICO • Positive impact from Texas cold snap losses in Q1 2021. • Partially offset by lower thermal production. EBITDA BRL 1,604.9 M (+38.8%): BRAZIL • Mainly driven by Termope CCGT. • New renewable capacity in operat
Slide 21: D&A and Provisions and Bad Debt
D&A and Provisions and Bad Debt D&A and Provisions up 14%, to EUR 3,866 M, and +8% excluding FX impact D&A and Provisions (EUR M) Bad Debt Provisions / Billing (%) 1.09% -12% 0.96% +14% (+8% ex FX) -3,866 -3,384 -363 9M 2021 9M 2022 -268 Bad Debt Provisions Other Provisions -71 Overdue Debt (>90 day
Slide 22: Net Financial Results
Net Financial Results Recurring Net Financial Results up EUR 538 M, to EUR 1,379 M, due USD and BRL appreciation affecting debt and derivatives, higher average debt and increased cost of debt,… NET FINANCIAL RESULT (EUR M) COST OF DEBT -1,379 +2 bps (ex NEO) -142 -92 2.89% -179 2.87% -125 -841* -145
Slide 23: Debt structure
Debt structure Iberdrola debt is well positioned against rising interest rates DEBT SPLIT * FIXED % RANGE Other Debt ** EBITDA *** R 3% 75% ~ 50% 15% 90% ~ 90% 13% 41% 90%** ~ 55% 84% ~ 60% 28% R 0% ~ 0% * Calculated over net debt ** Calculated over net debt with a total of 5.2 bn EUR (including 2.1
Slide 24: Net Debt evolution
Net Debt evolution Cash flow generation, up 28%, compensates gross investments and FX, Eur bn 2,275 1,071 44,293 2,465 39,119 8,204 7,567 0.7** Other Dividend* FX Gross FFO Investments • Working capital: affected by higher energy prices in the current energy context and regulatory impacts in receiva
Slide 25: Financial ratios and Adjusted Net Debt
Financial ratios and Adjusted Net Debt Solid credit metrics due to strong cash flow generation, that more than compensates Net Debt increase ADJUSTED CREDIT METRICS Sep 2022 Sep 20211 Adjusted Net Debt / EBITDA 3.3x 3.4x FFO 2 / Adjusted Net Debt 24.3% 23.4% RCF / Adjusted Net Debt 21.9% 21.0% Adjus
Slide 26: Liquidity and maturities
Liquidity and maturities As of today, our liquidity totals EUR 24,1 bn covering 27* months of financing needs despite the volatility in the energy markets… Cash 4,517 Available financing 3,793 Credit lines 15,792 …with an average life of debt of 6 years *Including subsequent events and PNM acquisiti
Slide 27: Net Profit
Net Profit Net Profit reaches EUR 3,104 M, driven by operating performance and net positive effect of one-offs EUR M 9M 2022 9M 2021 vs 9M’21 (%) EBIT 5,663 4,781 +19% - Net Financial Expenses -1,379 -696 +98% - Equity Method 171 5 n/a - Corporate Tax -788 -1,324 -41% - Minorities -565 -358 +58% Net
Slide 28: Agenda: Conclusions
Agenda Conclusions | www.iberdrola.com | 28
Slide 29: Conclusion: 2022 Outlook
Conclusion: 2022 Outlook REAFFIRMING OUR NET PROFIT OUTLOOK FOR 2022 (EUR 4.0 - 4.2 BN) ADDITIONAL GROWTH… … MINIMIZING RISKS • ~2,500 MW of additional renewable capacity • All production for Q4 already sold • Normalized renewable resource in Q4, only • Supplies closed with prices secured partially
Slide 30: Upcoming Capital Markets Day in November 9th 2022
CAPITAL MARKETS DAY UPCOMING CAPITAL MARKETS DAY IN NOVEMBER 9TH 2022… …WITH MORE INFORMATION ABOUT GROUP OUTLOOK FOR THE NEXT YEARS www.iberdrola.com | 30
Slide 31: Annex I: Iberdrola Retribución Flexible program
Agenda Annex I: “Iberdrola Retribución Flexible” program January 2023 | www.iberdrola.com | 31
Slide 32: Iberdrola Retribución Flexible program January 2023
“Iberdrola Retribución Flexible” program January 2023 LAST TRADING DATE Closing prices considered for - Announcement of capital determining the increase in BORME average price used to - Last day to buy IBE shares PAYMENT DATE calculate number of Last day of rights and participate in trading period a
Slide 33: Annex II
Agenda Annex II | www.iberdrola.com | 33
Slide 34: ESG financing
ESG financing In 2022 Iberdrola signed EUR 7.4* bn of new ESG financing bringing the cumulative total to EUR 44.7* bn NEW ESG FINANCING 2022: EUR 7,359 M * TOTAL ESG FINANCING: EUR 44,678 M * 78% of newly signed financing are ESG transactions, reaffirming Green Sustainable Structured Bank Loans Iber
Slide 35: ESG-F
ESG-F Iberdrola monitors the most relevant sustainability indicators in its business strategy and establishes parameters related to ESG criteria in its incentive plans ∆ Annual average 2020 2021 2017-2021 Own emission-free installed capacity (%) 79 81 +2.3% Own specific CO2 emissions in Europe (t/GW
Slide 36: ESG-F
ESG-F Iberdrola, a pioneer in its approach to corporate governance and leader in governance vision from an ESG perspective, according to PWC E S G Dow Jones Sustainability Gender diversity ISS Prime Index Top 21 in IBEX-35 number of women in the ESG performance above cross-sector Board comparison On