Slide 1: Results Presentation Nine Months
RESULTS PRESENTATION NINE MONTHS October 27, 2021 @ié iBERDROLA | N7N""™ BB GSDG
Slide 2: Legal Notice: Disclaimer
Legal Notice DISCLAIMER This document and the information presented herein was prepared by Iberdrola, S.A. solely with respect to This document has been prepared by Iberdrola, S.A. exclusively for use during the presentation of financial the consolidated financial results of Iberdrola, S.A. and was
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 operati
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 9M 2021 REPORTED NET PROFIT OF EUR 2,408 M ( -10%) ADJUSTED NET PROFIT UP 5% TO EUR 2,688 M Reported EBITDA grows 11% to EUR 8,165 M • Strong operating performance in USA and Brazil Record gross investments of more than EUR 7,000 M (+6%), 77% in international markets • Renew
Slide 6: EBITDA
EBITDA R E P O R T E D E B I T D A G R O W S + 11 % DRIVEN BY US AND BRAZIL BREAKDOWN BY BUSINESS NETWORKS •New Rate Case in New York approved in November 2020 •Brazil: Tariff increases, new transmission and Neoenergia Brasilia Generation 13% & Supply RENEWABLES •Additional capacity installed 8,165
Slide 7: Investments
Investments GROSS INVESTMENTS UP 6% TO EUR 7,036 M W I T H 7 7 % I N I N T E R N AT I O N A L M A R K E T S 9M GROSS INVESTMENTS BY COUNTRY 9M GROSS INVESTMENTS BY BUSINESS EUR M 2% Corporate & other USA 1,936 28% Generation 9% & Supply Spain 1,593 23% Brazil 1,354 19% France 6% Ib. Energía Internac
Slide 8: Investments - Renewable capacity
Investments - Renewable capacity ~ 3 , 7 5 0 N E W M W I N O P E R AT I O N I N T H E L A S T 1 2 M O N T H S … NEW INSTALLED CAPACITY BY TECHNOLOGY (Y-o-Y) CAPACITY UNDER CONSTRUCTION BY GEOGRAPHY Onshore wind 1,228 MW USA 300 1,600 800 -- -- 2,700 37% France 7% Germany 7% IEI 200 975 550 275 50 2,
Slide 9: Investment - Networks
Investment - Networks NETWORK INVESTMENTS UP 27% WITH FURTHER INCREASES EXPECTED FROM NEW TARIFF FRAMEWORKS… 9M GROSS INVESTMENTS (EUR M) BRAZIL • Tariff readjustments reviews in Neoenergia Coelba and Neoenergia Cosern (April) and Neonenergia Elektro (August) Total Networks investments 3,185 EUR M •
Slide 10: Growth platforms
Growth platforms CONSOLIDATING GROWTH PLATFORMS IN CORE COUNTRIES AND NEW MARKETS… Baltic Eagle Offshore wind farm TRANSMISSION HYDRO PUMP NETWORKS STORAGE OFFSHORE WIND Tamega 1,200 MW HV line in Mato Grosso do Sul Tamega Hydro NECEC USD 950 M Pump Storage Vineyard Wind 806 MW Leilões 2017-20 BRL 1
Slide 11: Growth platforms: Offshore wind
Growth platforms: Offshore wind A C C E L E R AT I N G O F F S H O R E W I N D E X PA N S I O N I N E U R O P E , U S A A N D A S I A EUROPE USA ASIA • Execution of preferential right for • Agreement with CIP: Avangrid • New Asia-Pacific Hub covering Windanker wind farm in Baltic Sea taking control
Slide 12: Growth platforms: PNM Resources
Growth platforms: PNM Resources NEW MEXICO UTILITY (PNM RESOURCES): TRANSACTION CLOSING EXPECTED BEFORE END 2021 PNM RESOURCES SHAREHOLDER APPROVAL FEDERAL Federal Energy Regulatory Commission (FERC) Stable regulated income from two Hart-Scott-Rodino Clearance (HSR) expanding states, New Mexico and
Slide 13: Regulatory context
Regulatory context E N E R G Y P R I C E S E N V I R O N M E N T: E U R O P E A N R E S P O N S E MORE RENEWABLES, MORE CLEAN INVESTMENTS AND LESS DEPENDENCY ON IMPORTED FOSSIL FUELS EU Communication on energy prices (2021 - 660) Gas prices, main cause of high wholesale electricity prices affecting
Slide 14: Regulatory context in Spain
Regulatory context in Spain E N E R G Y P R I C E S E N V I R O N M E N T: S I T U AT I O N I N S PA I N TOTAL ELECTRICITY DEMAND IN SPAIN (TWh) 25 TWh 10% of demand 190 TWh • 10M residential, including vulnerable customers • Customers in regulated tariff (PVPC) linked to 76% of demand spot prices (
Slide 15: Business profile
Business profile IBERDROLA BUSINESS AND FINANCIAL PROFILE P R O T E C T S F R O M I N F L AT I O N A N D C O M M O D I T I E S ~70% of revenues from A-rated countries in USD, EUR and GBP ~96% of production in Spain and UK already sold for 2022 Purchases for 2021-22 already hedged or closed, protecti
Slide 16: Financial Profile
Financial Profile MAINTAINING OUR REAFFIRMING CREDIT RATINGS DRIVEN BY STRONG RATIOS CREDITS RATINGS… AND THE RESILIENCY OF OUR BUSINESS MODEL OPERATING CASH FLOW (FFO1) FFO / ADJUSTED NET DEBT2 +7% 23.4% 6,412 22.0% 5,982 +140 pb Q3 20 Q3 21 Q3 20 Q3 21 EUR 35.8 BN IN GREEN / SUSTAINABLE FINANCING
Slide 17: ESG
ESG A SUSTAINABLE STRATEGY BASED ON ELECTRIFICATION: FIGHTING CLIMATE CHANGE AND CREATING WEALTH AND JOBS IN OUR COMMUNITIES Iberdrola, reaffirmed as a member of Standard & Poor´s Global Clean Energy Index Number 1 in the “Influence Map” climate policy engagement ranking Zero emissions in 2030, 20 y
Slide 18: Agenda: Analysis of results
Agenda Analysis of results www.iberdrola.com | 18
Slide 19: Tax impacts
Tax impacts Three non-recurring tax impacts have been accounted for in 9M 2021: • EUR -453 M corresponding to UK deferred taxes, as a consequence of the decision of the UK Government to increase the corporate tax rate from 19% to 25%, effective from 1st April 2023. Non-cash item*, accounted for in C
Slide 20: EBITDA / Group
EBITDA / Group Adjusted EBITDA up 5.2%, to EUR 7,989.4 M,… +10.7% +5.2%** +8.7% +114 +128 -417 +260 8,164.9 8,249.3 7,989.4 7,375.4 REPORTED REPORTED COVID effect Gas clawback 2013-2016 ADJUSTED FX impact ADJUSTED EBITDA 9M 2020* EBITDA 9M 2021 Spanish EBITDA 9M 2021 EBITDA 9M 2021 levy / EX FX … an
Slide 21: Gross Margin / Group
Gross Margin / Group Gross Margin up 6.3%, to EUR 12,585.9 M, with a negative FX impact of EUR -416 M … REVENUES (EUR M) PROCUREMENTS (EUR M) 27,999.8 +15.5% 24,248.0 +24.2% 15,413.9 12,406.7 9M 2020 9M 2021 9M 2020 9M 2021 … and grows 8.9% excluding FX and COVID impact www.iberdrola.com | 21
Slide 22: Net Operating Expenses / Group
Net Operating Expenses / Group Net Operating Expenses up 2.7%, to EUR 3,153.4 M, mainly driven by the contribution of new businesses (Brazil, Australia, France), with workforce growing by 9%,… Net Operating Expenses (EUR M) 9M 2021 9M 2020 vs 9M’20 (%) Net Personnel Expenses -1,679.9 -1,595.7 +5.3%
Slide 23: Results by Business / Networks
Results by Business / Networks Networks Reported EBITDA grows 11.5%, to EUR 3,931.3 M … EBITDA BY GEOGRAPHY (%) KEY DRIVERS Brazil 26% 32% Spain Strong operating performance in all geographies due to rate cases and higher investments… 3,931.3 United Kingdom 19% United 23% States … negatively affecte
Slide 24: Results by Business / Networks
Results by Business / Networks EBITDA EUR 1,250.3 M (EUR +44.8 M; +3.7%): • EUR -22 M of lower remuneration established for 2021 in the regulatory framework (5.58%) compensated by higher SPAIN investments. • Settlements from previous years as a consequence of improvements in quality and operations:
Slide 25: Results by Business / Renewables
Results by Business / Renewables Renewables Reported EBITDA up 70.9%, to EUR 3,042.4 M,… EBITDA BY GEOGRAPHY (%) KEY DRIVERS IEI* 9% Production increases +12.7%, due to … Mexico 3% Brazil 4% 52% Spain … higher installed capacity: 37,481 MW (+10.4%) … United States 18% 3,042.4 … and load factor: +4.5
Slide 26: Results by Business / Renewables
Results by Business / Renewables EBITDA EUR 1,593.5 M (EUR +1,143.4 M; n/a): • Higher output (+23.3%) driven by hydro (+30.9%), onshore (+6.9%) and PV production (+164.6%). SPAIN • Reversal of 2013-2016 levy (EUR +417 M). • Contribution of asset rotation (EUR +170 M). EBITDA USD 652.3 M (USD +137.7
Slide 27: Results by Business / Generation and Supply
Results by Business / Generation and Supply Generation and Supply Reported EBITDA falls -44.7% to EUR 1,086.1 M, … EBITDA BY GEOGRAPHY (%) KEY DRIVERS Brazil 7% Lower thermal output… Spain … higher wholesale prices negatively affecting Spanish and UK business… Mexico 1,086.1 42% 42% … cold snaps imp
Slide 28: Results by Business / Generation and Supply
Results by Business / Generation and Supply EBITDA EUR 467.7 M (EUR -710.9 M; -60.3%): • Output fall 4.4%. SPAIN • Higher wholesale energy purchases at higher prices vs 9M 2020, with output already sold at fixed prices. • Gas clawback impact. EBITDA USD 558.4 M (USD -84.1 M; -13.1%): MEXICO • Negati
Slide 29: EBIT / Group
EBIT / Group EBIT grows 19.0%, to EUR 4,781.1 M EBIT (EUR M) D&A and Provisions (EUR M) 4,781 +19.0% -3,384 4,018 -3,357 +0.8% -320 -370 Provisions -2,987 D&A -3,064 9M 2020 9M 2021 9M 2020 9M 2021 D&A up 2.6%, to EUR 3,064 M, and Provisions fall 13.5%, to EUR 320 M driven mainly by lower bad debt p
Slide 30: Net Financial Results / Group
Net Financial Results / Group Net Financial Results up EUR 55 M, to EUR 696 M, due to 2020 positive FX hedges, partially offset by positive one-offs (Spanish levy, Wallbox) and lower average debt NET FINANCIAL RESULT (EUR M) COST OF DEBT 3.45% -696 -55 3.15% +30 bps -641 -8 bps (ex BRL) 2.95% 2.87%
Slide 31: Debt structure / Group
Debt structure / Group Iberdrola Balance Sheet is well positioned to a rise in inflation. Average Debt maturity of over 6 years 2021 2021 fixed % range Debt weighting* Debt ** EBITDA *** 43% 76% ~ 55% 27% 94% ~ 80% 19% 60% ~ 55% R 11% 0% ~ 0% * Calculated over net debt as of Sep -21 ** Calculated ov
Slide 32: Financial ratios and Adjusted Net Debt / Group
Financial ratios and Adjusted Net Debt / Group Solid financial position, with improvement of key credit metrics … ADJUSTED CREDIT METRICS ADJUSTED NET DEBT1 (EUR M) Sep 2020 3 Sep 2021 3,4 37,883 37,219 Adjusted Net Debt 1 / EBITDA 3.7x 3.4x 808* FFO 2 / Adjusted Net Debt 1 22.0% 23.4% RCF / Adjuste
Slide 33: Net Profit / Group
Net Profit / Group Adjusted Net Profit up 5.2%, to EUR 2,688 M … ADJUSTED NET PROFIT (EUR M) 2,681 +5.2% 2,688 127 (1) 2,554 280 (2) 2,408 9M 2020 9M 2020 9M 2021 9M 2021 Reported Adjusted Reported Adjusted Net Profit Net Profit Net Profit Net Profit … and EUR 2,408 M of Reported Net Profit, affecte
Slide 34: Agenda: Conclusions
Agenda Conclusions www.iberdrola.com | 34
Slide 35: Conclusions
Conclusions STRONG PERFORMANCE IN NINE MONTHS ALONG WITH… Additional capacity New Rate Cases in the US Maintaining ~4,000 MW Financial Tariff increases and in FY2021 consolidation of Strength Neoenergia Brasilia in Brazil …ALLOW US TO REAFFIRM OUR OUTLOOK FOR 2021 www.iberdrola.com | 35
Slide 36: Conclusions: Maximising value to all stakeholders
Conclusions MAXIMISING VALUE TO ALL OUR STAKEHOLDERS CUSTOMERS EMPLOYEES • ~5,000 new hires • Benefiting customers with stable price contracts below current wholesale market • 99% of our employees have permanent contracts prices (savings of EUR 2,000 M) • >50 hours of training • Quality of service •
Slide 37: Annex I: Iberdrola Retribución Flexible program January 2022
Agenda Annex I: “Iberdrola Retribución Flexible” program January 2022 www.iberdrola.com | 37
Slide 38: Iberdrola Retribución Flexible program: January 2022
“Iberdrola Retribución Flexible” program: January 2022 - Last day to buy IBE shares Board of Directors: (i) formulation of the accounting statement accrediting Closing prices and participate in scrip compliance with the requirements of considered for and/or receive the dividend in cash Last day of r
Slide 39: Annex II
Agenda Annex II www.iberdrola.com | 39
Slide 40: Group results
Group results For fiscal year 2021, IBERDROLA Group has changed the format of its income statement, eliminating the heading "Profit/(loss) on non-current assets" The items that were previously included in this heading are now classified as follows: - Gains or losses on disposals of fixed assets and
Slide 41: Income Statement / Group
Income Statement / Group EUR M 9M 2021 9M 2020 % Revenues 27,999.8 24,248.0 +15.5 Gross Margin 12,585.9 11,841.3 +6.3 Net Operating Expenses -3,153.4 -3,070.8 +2.7 Levies -1,267.5 -1,395.2 -9.1 EBITDA 8,164.9 7,375.4 +10.7 EBIT 4,781.1 4,018.1 +19.0 Net Financial Expenses -696.0 -640.8 +8.6 Equity R
Slide 42: COVID impact / Group
COVID impact / Group Two main direct COVID impacts considered, totalling EUR 196 M in 9M 2021, demand (EUR 128 M) accounted for within EBITDA and bad debt (EUR 68 M) at EBIT DEMAND1 BAD DEBT2 EUR M Generation Generation Networks Networks &Supply &Supply SPAIN - 17 - 18 UK 2 27 - 12 US - - 18 - MEXIC
Slide 43: Liquidity and maturities
Liquidity and maturities Adequate and diversified liquidity totals EUR 19.1 bn covering 19 months of financing needs LIQUIDITY BY INSTRUMENT: EUR 19,059 M DEBT MATURITIES (EUR M) 19.407 Cash 4,489 Backup lines Available 9,800 financing 1,873 4.660 5.154 4.374 3.758 Credit lines 2,897 784 2021 2022 2
Slide 44: Green/sustainable financing
Green/sustainable financing In 2021 Iberdrola signed EUR 7.9 bn of new sustainable transactions and EUR 5.3 bn of new green financing for a total of EUR 35.8 bn in green/sustainable financing* GREEN / SUSTAINABLE FINANCING: EUR 35,782 M GREEN FINANCING: EUR 19,001 M Multilateral Bank loans Multilate
Slide 45: ESG-F
ESG-F Iberdrola monitors all the relevant sustainability indicators in its business strategy and establishes parameters related to ESG criteria in its incentive plans ∆ Annual average 2020 2016-20201 Own emission-free installed capacity (%) 79 +2.1% Own specific CO2 emissions (t/GWh) 98 -7% Own spec
Slide 46: ESG
ESG COMMITTED TO CREATE VALUE TO SHAREHOLDERS, EMPLOYEES, CUSTOMERS, AND THE SOCIETY A LEADING BUSINESS MODEL FOR ALL STAKEHOLDERS… KEY ESG+F All our coal and fuel oil plants closed ENVIRONMENT SOCIAL European emissions of ~50 g/kWh, in the 9M2021 Pioneering commitment: Serving our customers & Inves
Slide 47: 9M 2021 investments
9M 2021 investments Spain UK US Brazil Mexico IEI Total Networks 444.9 448.0 1,213.8 1,077.9 - - 3,184.6 Renewables 791.7 203.0 719.7 262.5 15.4 1,108.7 3,101.1 Generation & Supply 284.5 149.4 - 8.3 142.3 61.5 646.1 Other 71.9 22.7 2.3 5.5 1.8 - 104.2 Total 1,593.1 823.2 1,935.9 1,354.3 159.4 1,170.
Slide 48: Investments - Renewable capacity
Investments - Renewable capacity 8 2 % O F P L A N N E D C A PA C I T Y T O 2 0 2 5 I S A L R E A D Y I N S TA L L E D , U N D E R C O N S T R U C T I O N O R R E A D Y T O B U I L D RENEWABLE CAPACITY1 INSTALLED, UNDER CONSTRUCTION OR READY TO BUILD (MW) 2020 2021 2022 2023 2024 2025 Total Offshore
Slide 49: Progress on 2020-2025 Plan
Progress on 2020-2025 Plan RENEWABLE CAPACITY INSTALLED, UNDER CONSTRUCTION OR READY TO BUILD (MW) www.iberdrola.com | 49
Slide 50: Project Pipeline
Project Pipeline HIGH QUALITY PIPELINE OF 81,800 MW WITH A SUCCESS RATE ABOVE 60% PIPELINE BY TECHNOLOGY (MW) PIPELINE BY GEOGRAPHY (MW) 37,000 23,100 22,000 22,800 17,700 17,300 Offshore 66% Onshore 20% 7,300 7,600 64% Solar PV 14% 3,400 4,500 900 Iberia Offshore Onshore Solar Hydro Batteries wind
Slide 51: Offshore wind
Offshore wind AUCTIONS OFFER ADDITIONAL ROUTES Auction Type Auction Date Ibe project/Capacity UK 4th Round CfD Tariff Q4 2021 - Q1 2022 EA Hub (3.1GW) USA Massachusetts Tariff Q3 2021 Bid submitted for up to 1.2 GW Rhode Island Tariff Q4 2021 AUCTIONS FOR CURRENT New York Tariff Q2 2022 534 Zone PRO
Slide 52: Offshore wind
Offshore wind AUCTIONS OFFER ADDITIONAL ROUTES Auction Date Denmark Round 5 Seabed & tariff Q4 2021 Thor 1GW (COD 2026) Normandy 1.6GW France Seabed & tariff Q1 2022 – Q3 2022 Brittany (COD 2029/30) Netherlands Round 6 Q1 2022 Seabed & tariff Q1 2022 1.4GW 2 projects x 700 MW Ireland --- Tariff ---
Slide 53: Offshore wind: Farm down CIP agreement
Offshore wind: Farm down CIP agreement A S PA R T O F O U R C O N T I N U E D A S S E T R E O R G A N I Z AT I O N S T R AT E G Y IN A CORE BUSINESSES AND COUNTRIES … PRE AGREEMENT STRUCTURE AGREED SPLIT WITH CIP 50% + 1 sh. USD 12 Bn in investments …WE HAVE REACHED AN AGREEMENT WITH OUR PARTNER, CI
Slide 54: Distributed Energy
Distributed Energy INCREASING DISTRIBUTED ENERGY IN ALL GEOGRAPHIES 9M 2021 9M 2020 % Var. ELECTRICITY (GWh) Spain 68,690 65,538 + 4.7% United Kingdom 23,570 23,130 + 1.7% USA (1) 29,355 28,599 + 2.6% Brazil (2) 56,104 48,859 + 14.9% TOTAL ELECTRICITY 177,719 166,126 + 6.9% Gas (GWh) USA (1) 43,753
Slide 55: Production sold forward
Production sold forward Production sold forward 2021 2022 (1) % % Iberia 100% 94% UK 100% 100% Including retail roll-over contract production sold forward www.iberdrola.com | 55
Slide 56: Networks: Rate Cases
Networks: Rate Cases STABLE AND GEOGRAPHICALLY DIVERSIFIED RETURNS APPROVED THROUGH REGULATORY FRAMEWORKS 2021 2022 2023 i-DE 2020 - 2025 SP T RIIO – T2: Apr 21 - Mar 26 SP D/SP M RIIO – ED1: Apr 15 - Mar 23 NYSEG/RGE May 20 - Apr 23 CMP-D Mar 20 - Feb 21* UI-D Jan 17- Dec 19* SCG Jan 18- Dec 20* CN
Slide 57: Electricity transmission auctions
Electricity transmission auctions … ALONG WITH NEW TRANSMISSION PROJECTS •October 11th 2021 -offer submitted-. •Bid submitted by NY Transco (Avangrid 20%) and USA NYPA (NY) •COD: 2027 •Capex: USD 3,600 M • December 13h 2021 -offer submitted-. • 1,500 km HVDC between Kimal and Lo Aguirre Chile • Bid
Slide 58: Green Hydrogen
Green Hydrogen MORE THAN 60 PROJECTS IN 8 COUNTRIES… Bridgeport ▪ Exploring and developing projects Klammath related to mobility & Corpus Christi industry in 6 states ▪ Grant awarded to build an electrolyzer in Whitelee ▪ Agreement with Cinca (ceramics) to provide green H2 to different industry ▪ Wo
Slide 59: Retail & Smart Solutions
Retail & Smart Solutions ADDING 1.8 MILLION NEW ENERGY CUSTOMERS IN THE LAST 12 MONTHS… RETAIL SMART SOLUTIONS ENERGY SOLD (TWh) CUSTOMERS (M) Q3 21 Q3 20 +3% +1.8M 147.6 Smart Home (M) 8.8 7.3 1.2x 27.4 142.9 25.6 Smart Mobility (Thousands) 19.0 6.6 2.9x Smart Solar (Thousands) 13.6 5.8 2.3x Smart
Slide 60: Next Generation EU: Spain's Recovery, Transformation & Resilience Plan (1/2)
Next Generation EU: Spain's Recovery, Transformation & Resilience Plan (1/2) LEADING OR TAKING PART IN 175 PROJECTS WITH TOTAL INVESTMENTS OF EUR 30,000 M€ WITH KEY PARTNERS LIKE FERTIBERIA, VOLKSWAGEN-SEAT, IRIZAR, NAVANTIA, … Area Initiative Projects Floating offshore wind: Industrial scale farms
Slide 61: Next Generation EU: Spain's Recovery, Transformation & Resilience Plan (2/2)
Next Generation EU: Spain's Recovery, Transformation & Resilience Plan (2/2) Area Initiative Projects Public charging infrastructure for electric cars 2 Private charging infrastructure for electric cars 2 National fast and superfast corridors for electric vehicles 2 I+D+i in charging infrastructure