Slide 1: Results Presentation First Quarter
RESULTS PRESENTATION FIRST QUARTER April 27, 2022 @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: Highlights of the period
Agenda Highlights of the period www.iberdrola.com |4
Slide 5: Highlights of the period
Highlights of the period Q1 2022 NET PROFIT UP 3% TO EUR 1,058 M AVANGRID’s earnings increased by 33% and Neoenergia’s by 20%... ...offsetting 29% decrease in Net Profit in Iberdrola Spain EBITDA increases 5% to EUR 2,951 M Gross investments of more than EUR 2,100 M (EUR 9,600 M in the last 12 month
Slide 6: Energy market situation
Energy market situation N E E D T O A C C E L E R AT E T H E E N E R G Y T R A N S I T I O N AND STRENGTHEN THE EUROPEAN SINGLE MARKET… • Current crisis still reflects global dependence on fossil fuel imports • EU specially impacted as it still imports 90% of gas consumption (>45% from Russia) Solut
Slide 7: EBITDA
EBITDA E B I T D A U P 5 % : GROWTH IN NETWORKS AND RENEWABLES… BREAKDOWN BY BUSINESS NETWORKS • Higher asset base in all geographies • Tariff increases in USA and Brazil ENERGY PRODUCTION AND CUSTOMERS 2,951 54% Networks • Additional renewable capacity installed: ~3,500 MW Y-o-Y EUR M • Lower wind
Slide 8: Investments
Investments G R O S S I N V E S T M E N T S U P 1 % T O E U R 2 , 11 6 M (EUR 9,600 M IN THE LAST 12 MONTHS)… Q1 2022 GROSS INVESTMENTS BY COUNTRY Q1 2022 GROSS INVESTMENTS BY BUSINESS EUR M Weight Corporate & other Other Energy Production USA 672 32% & Customers 1% Spain 8% 421 20% Brazil 392 18% 2
Slide 9: Renewable capacity
Renewable capacity ~ 3 , 5 0 0 N E W M W I N O P E R AT I O N I N 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 Weight 3% 111 MW Spain 400 -- 2,050 -- -- 2,450 33% 35% 1,218 MW USA 100 1,600 725 -- -- 2,425 32% France 7% 29% ~3,500 RO
Slide 10: Renewable Pipeline
Renewable Pipeline HIGH QUALITY PIPELINE OF ~90GW FOCUSED ON AREAS WITH INCREASING CLEAN ENERGY AMBITION, LIKE US, UK AND THE EU… Total Pipeline +22.1GW +15.4GW 10.11 14.2 ~90GW 2.6 1.8 0.9 5.3 2.6 +16.4GW 38.2 11.1 31.7 3.3 1.9 0.1 RoW 15.5 +24.4GW +4.0GW 16.2 3.3 1.1 1.0 2.9 +7.5GW 4.7 3.3 4.9 0.1
Slide 11: Offshore Wind
Offshore Wind MAJOR MILESTONES REACHED IN EAST ANGLIA HUB AND COMMONWEALTH WIND WITH ALL PROJECTS UNDER CONSTRUCTION PROGRESSING AS SCHEDULED… St. Brieuc COD 2023 496 MW • Installation ongoing and commissioning on schedule • Progressing according to plan (offshore substation manufacturing and Baltic
Slide 12: Networks
Networks NETWORK INVESTMENTS OF EUR 797 M... Q1 2022 GROSS INVESTMENTS BY GEOGRAPHY BRAZIL • Progressing in transmission projects USA • Rate Cases for NY, ME, CT & MA, to be filed during in the next Spain USA 12 months targeting 2023-2025 18% 32% • CMP: Improvement in quality service setting the ROE
Slide 13: Energy policy and regulatory updates (1/3)
Energy policy and regulatory updates (1/3) E N E R G Y S E C U R I T Y A N D D E C A R B O N I Z AT I O N D R I V I N G AD D I T I O N A L I N V E S T M E N T S I N R E N E WAB L E S AN D N E T W O R K S EU SPAIN Toolbox and Repower EU: a coordinated response to current • RDL 6/2022 energy crisis ba
Slide 14: Energy policy and regulatory updates (2/3)
Energy policy and regulatory updates (2/3) E N E R G Y S E C U R I T Y A N D D E C A R B O N I Z AT I O N D R I V I N G AD D I T I O N A L I N V E S T M E N T S I N R E N E WAB L E S AN D N E T W O R K S UK US ▪ Federal and State Resiliency plans ▪ Energy Security Strategy: Fiscal policies to promot
Slide 15: Energy policy and regulatory updates (3/3)
Energy policy and regulatory updates (3/3) E N E R G Y S E C U R I T Y A N D D E C A R B O N I Z AT I O N D R I V I N G AD D I T I O N A L I N V E S T M E N T S I N R E N E WAB L E S AN D N E T W O R K S MEXICO BRAZIL ▪ Constitutional Reform rejected by Congress ▪ New law to support offshore wind de
Slide 16: Avangrid results (USD, US GAAP)
Avangrid results (USD, US GAAP) AVANGRID’S NET PROFIT GROWS +33% TO USD 445 M Strong Networks performance: executing rate plans and delivering on regulatory commitments Achieving earnings expectations with Networks Net Profit growing 12% Y-o-Y Planning to file rate cases in all jurisdictions over ne
Slide 17: Neoenergia results (BRL, BR GAAP)
Neoenergia results (BRL, BR GAAP) NEOENERGIA’S NET PROFIT INCREASES +20% TO BRL 1,212 M EBITDA up +39% to BRL 3,169 M Gross investments BRL 2,446 M (+34%) BRL 1,278 M in Distribution and BRL 357 M in new Transmission lines BRL 811 M in new Renewables assets (wind and solar) Regulatory stability: Ann
Slide 18: Financial Strength
Financial Strength BALANCED FINANCIAL PROFILE MAINTAINING OUR CREDITS RATINGS… IMPROVING CASH FLOW GENERATION AND DEBT MANAGEMENT FFO1/ADJUSTED NET DEBT TOTAL ESG FINANCING Sustainable Financing EUR 23.4 Bn +0.7p.p. 24.0% ~41 EUR Bn 23.3% Green Financing EUR 17.9 Bn Q1 21 Q1 22 Iberdrola remains the
Slide 19: Current energy market situation
Current energy market situation A RESILIENT BUSINESS MODEL IN THE SHORT AND LONG RUN Sustainable model based on renewables, networks and energy storage: ~90% of European production comes from zero-emission sources Ready to navigate short-term instability Geographic diversification: Resilient busines
Slide 20: Analysis of results
Agenda Analysis of results www.iberdrola.com | 20
Slide 21: Income Statement / Group
Income Statement / Group EBITDA up 5%, to EUR 2,951 M, and Net Profit up 3%, to EUR 1,058 M EUR M Q1 2022 Q1 2021 % Revenues 12,150 10,088 +20.4 Gross Margin 4,685 4,604 +1.8 Net Operating Expenses -1,151 -1,049 +9.8 Levies -583 -741 -21.3 EBITDA 2,951 2,814 +4.9 EBIT 1,747 1,713 +2.0 Net Financial
Slide 22: Gross Margin / Group
Gross Margin / Group Gross Margin up 1.8%, to EUR 4,685.4 M REVENUES (EUR M) PROCUREMENTS (EUR M) 12,150.0 +20.4% 10,088.4 +36.1% 7,464.6 5,484.3 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Revenues up 20.4%, to EUR 12,150 M, and Procurements up 36.1%, to EUR 7,465 M www.iberdrola.com | 22
Slide 23: Net Operating Expenses / Group
Net Operating Expenses / Group Net Operating Expenses up 9.8%, to EUR 1,151.3 M, as a consequence of Group growth, … Net Operating Expenses (EUR M) Q1 2022 Q1 2021 vs Q1’21 (%) Net Personnel Expenses -547.4 -541.1 +1.2% External Services -780.7 -669.0 +16.7% Other Operating Income 176.8 161.4 +9.6%
Slide 24: Results by Business / Networks
Results by Business / Networks Networks Reported EBITDA grows 20.9%, to EUR 1,587.4 M 26% Spain Brazil 29% 1,587.4 19% United Kingdom United States 27% With results improving in all geographies except Spain www.iberdrola.com | 24
Slide 25: Results by Business / Networks
Results by Business / Networks EBITDA EUR 409.1 M (-3.7%): SPAIN • EUR -22 M as a consequence of positive settlements accounted for in 2021. EBITDA BRL 2,772.4 M (+30.4%): BRAZIL • Positive impacts in Distribution, mainly due to tariff adjustments and inflation (BRL +789.7 M). EBITDA IFRS USD 476.7
Slide 26: Results by Business / Energy Production and Customers
Results by Business / Energy Production and Customers Energy Production and Customers Reported EBITDA falls 6.8%, to EUR 1,360.2 M RoW 9% 41% Spain Mexico 14% Brazil 5% 1,360.2 United States 10% 21% United Kingdom Mainly due to lower production and high market prices, not passed to customers www.ibe
Slide 27: Results by Business / Energy Production and Customers
Results by Business / Energy Production and Customers EBITDA EUR 557.4 M (-5.0%): • Output fell 18.9%, driven by lower renewable production, as well as by the unplanned outage of Cofrentes nuclear SPAIN plant, with combined impact of EUR -368 M, as IBE had to buy additional energy at higher prices n
Slide 28: Results by Business / Energy Production and Customers
Results by Business / Energy Production and Customers EBITDA USD 214.8 M (+10.8%): MEXICO • Positive impact from Texas cold snap losses in Q1 2021. • Partially offset by lower thermal production. EBITDA BRL 420.2 M (+33.5%): BRAZIL • Mainly driven by Termope CCGT. RoW EBITDA EUR 129.1 M (+42.3%): •
Slide 29: EBIT / Group
EBIT / Group EBIT grows 2.0%, to EUR 1,747.1 M EBIT (EUR M) D&A and Provisions (EUR M) 1,741 +2.0% -1,204 1,713 -1,101 +9.3% -108 -115 Provisions -986 D&A -1,096 Q1 2021 Q1 2022 Q1 2021 Q1 2022 D&A up 11.1%, to EUR 1,096 M, and Provisions fall 6.0%, to EUR 108 M driven by lower bad debt provisions a
Slide 30: Net Financial Results / Group
Net Financial Results / Group Net Financial Results up EUR 134 M to EUR 399 M due to higher average debt balance and higher cost of debt in Brazil… NET FINANCIAL RESULT (EUR M) COST OF DEBT 4.12% -27 -399 3.33% +79 bps -77 -30 -265 -4 bps (ex BRL) 2.89% 2.85% March Average Cost of March March March
Slide 31: Financial ratios and Adjusted Net Debt / Group
Financial ratios and Adjusted Net Debt / Group Despite Net Debt increase, mainly due to capex and FX evolution, Iberdrola maintains a solid financial position ADJUSTED CREDIT METRICS ADJUSTED NET DEBT1 (EUR M) Mar 20211 Mar 20221 39,119 40,374 1,151* Adjusted Net Debt / EBITDA 3.6x 3.3x 36,305 FFO 2
Slide 32: Net Profit / Group
Net Profit / Group Net Profit up 3.2%, to EUR 1,058 M, with operating performance improvement expected in the following quarters EUR M Q1 2022 Q1 2021 vs Q1’21 (%) EBIT 1,747.1 1,712.7 +2.0% - Net Financial Expenses -399.5 -265.4 +50.5% - Equity Method 215.8 -3.9 n/a - Corporate Tax -311.5 -282.4 +1
Slide 33: Conclusions
Agenda Conclusions www.iberdrola.com | 33
Slide 34: Conclusion: 2022 Outlook
Conclusion: 2022 Outlook MAINTAINING OUR CREDITS Q1 RESULTS RATINGS… AND EXPECTED Q2-Q4 PROFILE ALLOWS TO REAFFIRM 2022 OUTLOOK Exceptionally low hydro, wind and nuclear production expected to recover in Q2-Q4 Net Profit 3,800 MW of additional capacity and EUR ~4 Bn of network investments in 2022 co
Slide 35: Conclusion: Long-term outlook
Conclusion: Long-term outlook E L E C T R I F I C AT I O N , T H E A N S W E R T O C U R R E N T E N E R G Y C H A L L E N G E S . . . Acceleration of long-term energy trends Need to accelerate • Technology ELECTRIFICATION • Social change Energy Policy targets • Digitalization • Decarbonization • Se
Slide 36: Conclusion: Long-term outlook
Conclusion: Long-term outlook IBERDROLA, FIT TO DELIVER GROWTH Growth in Networks Growth in Renewables Geographical diversification A solid Financial Profile • Networks infrastructures will • Pipeline allows for selective • Current and new A-rated • Maintaining strong Rating represent ~ 50% of our f
Slide 37: Annex I: Iberdrola Retribución Flexible program July 2022
Agenda Annex I: “Iberdrola Retribución Flexible” program July 2022 www.iberdrola.com | 37
Slide 38: Iberdrola Retribución Flexible program July 2022
“Iberdrola Retribución Flexible” program July 2022 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 and
Slide 39: Annex II
Agenda Annex II www.iberdrola.com | 39
Slide 40: Liquidity and maturities
Liquidity and maturities Strong and diversified liquidity totals EUR 21* bn covering 22 months of financing needs LIQUIDITY BY INSTRUMENT: EUR 21,406 M* DEBT MATURITIES (EUR M) Cash 4,364 Backup lines 9,800 Available financing 3,084 Credit lines 4.158 C O M F O R TA B L E M AT U R I T Y P R O F I L
Slide 41: ESG financing
ESG financing In 2022 Iberdrola signed EUR 2.2* bn of new green financing for a total of EUR 41.3* bn in ESG financing NEW ESG FINANCING 2022: EUR 2,224 M * TOTAL ESG FINANCING: EUR 41,321 M * 72% of newly signed financing are ESG transactions, reaffirming Iberdrola's commitment while becoming its m
Slide 42: 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 43: 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 Governance and Sustainability Index Top 21 in IBEX-35 number of women in the System Board Only electricity comp