Slide 1: Results Presentation First half 2023
Results Presentation First half 27 July, 2023
Slide 2: Legal Notice: Disclaimer
Results Presentation Legal Notice First half 2023 DISCLAIMER This document has been prepared by Iberdrola, S.A. exclusively for use during the presentation of financial results of the first semester of the 2023 fiscal year. As a consequence thereof, this document may not be disclosed or published, n
Slide 3: Legal Notice: Forward-Looking Statements
Results Presentation Legal Notice First half 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 expect
Slide 4: Highlights of the period
Results Presentation First half 2023 Highlights of the period www.iberdrola.com | 4
Slide 5: Highlights of the period
Highlights of the period Results Presentation First half 2023 NET PROFIT UP 21% TO EUR 2,521 M (+28% excluding non-cash exceptional item) • Growth driven by investments in Networks and Renewables EBITDA of • United Kingdom: Cash recovery from previous years retail deficits EUR 7,561 M (+17%) • EU: N
Slide 6: EBITDA
EBITDA Results Presentation First half 2023 EBITDA REACHES EUR 7,561 M, UP 17% EBITDA BREAKDOWN BY BUSINESS NETWORKS • Higher asset base (+10% year-on-year) • Annual tariff adjustments in the UK, Brazil and the US • Regulatory frameworks protecting from higher inflation in the UK and Brazil Networks
Slide 7: Strategic Plan Execution: Investments
Strategic Plan Execution: Investments Results Presentation First half 2023 INVESTMENTS UP 8% IN LAST 12 MONTHS TO EUR 10,544 M… GROSS INVESTMENTS BY BUSINESS GROSS INVESTMENTS BY GEOGRAPHY (last 12 months) (last 12 months) Other Energy Corporate & other Production & IEI 2% Eur 1,595 M Customers 5% S
Slide 8: Strategic Plan Execution: Networks investments
Strategic Plan Execution: Networks investments Results Presentation First half 2023 NETWORKS INVESTMENTS UP 24%, GROWING IN ALL GEOGRAPHIES… H1 2023 ASSET BASE BY GEOGRAPHY NETWORKS • Improving diversification • Further growth expected through new Rate Cases: US Spain EUR 9 Bn – US: Maine (closed un
Slide 9: Strategic Plan Execution: Renewables
Strategic Plan Execution: Renewables Results Presentation First half 2023 ~2,565 MW INSTALLED IN THE LAST 12 MONTHS, to reach ~41,250MW ~7,100 MW UNDER CONSTRUCTION ON TRACK (representing additional investment of Eur ~12 Bn) RENEWABLE CAPACITY UNDER CONSTRUCTION NEW INSTALLED CAPACITY BY TECHNOLOGY
Slide 10: Strategic Plan Execution: Renewables (Offshore Wind)
Strategic Plan Execution: Renewables Results Presentation First half 2023 OFFSHORE WIND: PROGRESSING BUILD UP AND PROTECTING PROFITABILITY PROJECTS UNDER CONSTRUCTION OR IN PROGRESS SECURED AREAS Capacity First export Seabed cost Capacity In operation Seabed cost Saint Brieuc 500 MW July 2023 EA1N &
Slide 11: Strategic Plan Execution: Routes to Market
Strategic Plan Execution: Routes to Market Results Presentation First half 2023 ~135 TWH/Y CONTRACTED THROUGH LT PPAS & REGULATED CONTRACTS (avg. term ~12y) AND RETAIL CUSTOMERS CONTRACTED REVENUES OUTLOOK 2023E1 ROUTES TO MARKET: LATEST DEVELOPMENTS IN Q2 • New multi-country PPA with Vodafone for m
Slide 12: European Electricity Market Reform
European Electricity Market Reform Results Presentation First half 2023 ELECTRICITY MARKET REFORM: BALANCED AND FOCUSED PROPOSALS FROM BOTH EU COMMISSION AND PARLIAMENT (ITRE COMMITTEE) European Parliament Commission Proposal Committee Approval ► Recognition of proper market performance: new measure
Slide 13: Avangrid and Neoenergia Results (Local GAAP)
Avangrid and Neoenergia Results (LOCAL GAAP) Results Presentation First half 2023 AVANGRID’S EBITDA REACHES USD 1,299 M (-1%) NEOENERGIA’S EBITDA REACHES BRL 6,282 M (-2%) Investments reached USD 2,742 M during last 12M Investments reached BRL 9,620 M during last 12M BUSINESS HIGHLIGHTS BUSINESS HIG
Slide 14: Asset rotation & Partnerships
Asset rotation & Partnerships Results Presentation First half 2023 ASSET ROTATION PLAN 2023-2025 ALREADY COMPLETED (EUR 7,500 M) Major progress in Asset Rotation as at H1 2023 Q2 key developments Mexico Infr. Mexico Transaction Partners ✓ • Agreement to sell ~60% of Iberdrola’s business in Mexico St
Slide 15: Cash Flow – H1 2023
Results Cash Flow – H1 2023 Presentation First half 2023 FFO REACHES EUR 5,731 M IN H1 ’23, UP +21% excluding hydro canon collection in H1 ’22 OPERATING CASH FLOW (FFO1) – H1 2023 FFO/ADJUSTED NET DEBT +3% +20 pb 24.9% 5,731 24.7% 5,560 Hydro canon collection in 826 +21% Spain H1 2022 H1 2023 H1 202
Slide 16: Annual General Meeting
Annual General Meeting Results Presentation First half 2023 72% QUORUM WITH 98 % AVERAGE FAVOURABLE VOTE Average vote in Group of Proposals favour Corporate Management and Results 99.7% Corporate Governance and Sustainability System 99.9% Remunerations 96.9% Board of Directors 98.2% www.iberdrola.co
Slide 17: Shareholder remuneration
Shareholder remuneration Results Presentation First half 2023 TOTAL SHAREHOLDER REMUNERATION INCREASES BY 11.6%1 TO 0.501 EUROS reaching 2025 dividend floor in our strategic plan Payment EUR/Share Interim dividend Executed 0.180 Engagement dividend Executed 0.005 Supplementary dividend 28th July 202
Slide 18: Analysis of results
Results Presentation First half 2023 Analysis of results www.iberdrola.com | 18
Slide 19: Accounting Highlights
Results Presentation Accounting Highlights First half 2023 H1 ‘23 results includes two non-cash impacts that need to be explained Market estimates adjusted by the Government to reflect lower power prices Regulated Affecting c. 1.6 TWh of total regulated renewable output (c. 7 TWh) renewables in Spai
Slide 20: Income Statement / Group
Results Presentation Income Statement / Group First half 2023 EBITDA up 17% to EUR 7,561 M, and Net Profit would have increased 28% to EUR 2,661 M, excluding one-off non-cash impact in Mexico (EUR -140 M) EUR M H1 2023 H1 2022 % Revenues 26,263 24,430 +7.5 Gross Margin 12,124 9,869 +22.8 Net Operati
Slide 21: Gross Margin / Group
Results Presentation Gross Margin / Group First half 2023 Gross Margin up 23% to EUR 12,124 M Revenues (EUR M) Procurements (EUR M) 26,263.2 +7.5% 24,429.9 14,561.1 -2.9% 14,139.6 H1 2022 H1 2023 H1 2022 H1 2023 Revenues up 7.5%, to EUR 26,263 M driven by UK, and Procurements down 2.9%, to EUR 14,14
Slide 22: Net Operating Expenses / Group
Results Presentation Net Operating Expenses / Group First half 2023 Excluding extraordinaries in 1H ‘22 and reconciliation impacts in the US, Net Personnel Expenses increases 6.5% and External services 6.8%... Net Operating Expenses (EUR M) H1 2023 H1 2022 vs’22 (%) Net Personnel Expenses -1,416.4 -
Slide 23: Results by Business / Networks
Results Presentation Results by Business / Networks First half 2023 Networks Reported EBITDA reaches EUR 3,127 M 27% Spain Brazil 35% 3,127.1 19% United Kingdom United States 20% H1 ’22 positively affected by one-offs in US totaling EUR 533 M partially compensated by legal case in Spain (EUR 195 M)
Slide 24: Results by Business / Networks
Results Presentation Results by Business / Networks First half 2023 EBITDA EUR 845.4 M (+33.7%): SPAIN • Driven by a negative one-off in H1 ’22 related to a legal case that reversed at the end of the year (EUR -195 M) EBITDA BRL 5,979.6 M (+3.0%): BRAZIL • Growth driven by tariff reviews in Distribu
Slide 25: Results by Business / Energy Production and Customers
Results Presentation Results by Business / Energy Production and Customers First half 2023 Energy Production and Customers EBITDA to EUR 4,458 M RoW 5% Mexico 9% Brazil 3% United States 8% 4,458.3 46% Spain* United Kingdom 28% * 1.2% revenue tax in Spain included in corporation while for presentatio
Slide 26: Results by Business / Energy Production and Customers
Results Presentation Results by Business / Energy Production and Customers First half 2023 EBITDA EUR 2,060.5 M (+46.0%): • Compared to a weak 2022 as a result of: SPAIN o Production reaching normal levels, especially hydro and nuclear (+4.1 TWh) and higher sales due to a gain in market share o Lowe
Slide 27: Results by Business / Energy Production and Customers
Results Presentation Results by Business / Energy Production and Customers First half 2023 EBITDA USD 452.9 M (-3.0%): MEXICO • Lower contribution from renewable assets partially compensated by the new capacity in operation (Tamazunchale II) EBITDA BRL 838.5 M (-10.5%): BRAZIL • New renewable capaci
Slide 28: EBIT / Group
Results Presentation EBIT / Group First half 2023 EBIT grows 25% to EUR 4,911 M EBIT (EUR M) D&A and Provisions (EUR M) 4,911 +25.2% 3,922 -2,521 +5.1% -2,650 -340 -279 -2,310 -2,242 H1 2022 H1 2023 H1 2022 H1 2023 D&A and provisions up 5% to EUR 2,650 M, driven by higher asset base and bad debt evo
Slide 29: Net Financial Results / Group
Results Presentation Net Financial Results / Group First half 2023 Net Financial Results up EUR 211 M to EUR 1,127 M, due to higher average debt and interest rates, partially offset by FX derivatives results NET FINANCIAL RESULT (EUR M) COST OF DEBT -118 +32 -1,127 +64 bps 5.05% -123 -916 -2 4.41% D
Slide 30: Financial ratios and Adjusted Net Debt / Group
Results Presentation Financial ratios and Adjusted Net Debt / Group First half 2023 FFO / Adjusted Net Debt improves to 24.9% compared to H1 2022, despite EUR 826 M positive impact of hydro canon recovery in 2022 ADJUSTED CREDIT METRICS FFO & ADJUSTED NET DEBT ADJUSTED NET DEBT EVOLUTION 11,295 10,3
Slide 31: Financial strength
Financial strength Results Presentation First half 2023 Diversified portfolio provides flexibility to target the markets at the right timing achieving very favourable conditions NEW FINANCING 2023: EUR 4,0551 M TOTAL ESG PORTFOLIO Dev. Bank Loan EUR 207 M Hybrid Bond EUR 1,000 M Green Financing 58%
Slide 32: Net Profit / Group
Results Presentation Net Profit / Group First half 2023 Net Profit growth lower than EBIT affected by: one-off in Mexico (EUR -140 M in 2023 Income Tax) and CIP reorganization (EUR +218 M in 2022 Equity Method) H1 2023 H1 2022 vs’22 (%) EUR M EBIT 4,911.0 3,922.3 +25.2% - Net Financial Expenses -1,1
Slide 33: Conclusions
Results Presentation First half 2023 Conclusions www.iberdrola.com | 33
Slide 34: Conclusions: Increasing Net Profit growth outlook
Conclusions Results Presentation First half 2023 Increasing Net Profit growth outlook to High Single Digit excluding capital gains from asset rotation Very strong H1… …with additional upsides in H2 28% Growth – US: Maine & NY – Renewable production recovery New in Net Profit – Brazil: Bahia (April),
Slide 35: Annex
Results Presentation First half 2023 Annex www.iberdrola.com | 35
Slide 36: Hydro situation in Spain
Results Presentation Hydro situation in Spain First half 2023 Sil-Miño basin (IBE’s reserves: 1,237 GWh) 2023 2022 5Y avrg. Hydro situation in Spain varies by basin 67% 36% 60% Iberdrola’s dams reserves at good levels vs. ’22 and 5Y average Duero basin (IBE’s reserves: 2,467 GWh) 2023 2022 5Y avrg.
Slide 37: Liquidity and maturities
Results Presentation Liquidity and maturities First half 2023 As of today, liquidity1 totals EUR 20.3 bn covering 21 months of financing needs with an average life of debt close to 6 years 23,347 Cash 2,466 Available financing 3,662 5,211 2 6,151 3 Credit lines 4,704 4,090 14,162 1,965 2023 2024 202
Slide 38: Diversified financing portfolio at competitive rates
Results Presentation Diversified financing portfolio at competitive rates First half 2023 Continuing with the strategy of diversification of funding sources that provides flexibility to tap the market, raising Eur 4.1(1) Bn in new financing and extending the term of Eur 6.1(1) Bn in existing transac
Slide 39: ESG financing
Results Presentation ESG financing First half 2023 Out of the EUR 4.1 Bn raised in 2023, EUR 3.4 Bn correspond to new green financing for a total portfolio of EUR 50.7 Bn in ESG transactions NEW ESG FINANCING H1 2023: EUR 3,440 M (1) TOTAL ESG FINANCING: EUR 50,652 M (1) 66% of total financing 85% o
Slide 40: ESG
Results Presentation ESG First half 2023 2022 2025e 2030e Specific emissions (global mix) Carbon Neutral in electricity generation in 2030 g CO2 /kWh 88 <70 Carbon neutral1 % assets with biodiversity assessment Biodiversity: Net positive impact in 2030 and Neutrality Plan 0% 20% 100%/ Net Positive T
Slide 41: CC lberdrola
CC lberdrola