Slide 1: Results Presentation First Quarter 2024
Results Presentation First Quarter 24 April 2024
Slide 2: Legal Notice
Results Legal Notice Presentation First Quarter 2024 DISCLAIMER This document has been prepared by Iberdrola, S.A. exclusively for use during the presentation of financial results of the first quarter of the 2024 fiscal year. As a consequence thereof, this document may not be disclosed or published,
Slide 3: Legal Notice: Forward-Looking Statements
Results Legal Notice Presentation First Quarter 2024 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 exp
Slide 4: Highlights of the period
Results Presentation First Quarter 2024 Highlights of the period www.iberdrola.com |4
Slide 5: Highlights of the period
Results Highlights of the period Presentation First Quarter 2024 REPORTED NET PROFIT OF EUR 2,760 M vs EUR 1,485 M IN Q1’23 Reported EBITDA reaches Eur 5,857 M vs Eur 4,065 M • EBITDA up +10% to Eur 4,140 M in recurrent terms excluding: Strong Operating • Q1’24: Mexico transaction (1,717 M at EBITDA
Slide 6: Net Profit: Recurrent net profit up 28%
Results Net Profit Presentation First Quarter 2024 Recurrent Net profit up 28% … Q1 2024 NET PROFIT (Eur M) Net impact of Mexico transaction 2,760 1,595 1,165 1,485 +28% UK Retail deficit 238 recovery 1,247 Q1 2023 Q1 2024 Q1 2024 recurrent reported www.iberdrola.com |6
Slide 7: EBITDA: Recurrent EBITDA up 10% to Eur 4,140 M
Results EBITDA Presentation First Quarter 2024 …driven by strong operating performance in all businesses and geographies: Recurrent EBITDA up +10% to Eur 4,140 M Recurrent EBITDA Local currency, by geography local GAAP Business Highlights (exc. Mex transaction) Networks • Higher Regulated Asset Base
Slide 8: Investments: Record investments of Eur 2,382 M, up 36%
Results Investments Presentation First Quarter 2024 Record investments of Eur 2,382 M, up 36%… Q1 ‘24 INVESTMENTS (Eur M) Q1 ‘24 INVESTMENTS BY BUSINESS (Eur M) 2,382 Corporate & other +36% Other Energy Production & Customers 1,755 +40% vs. 2023 2,382 Renewables +50% vs. 2023 Eur M Q1 2023 Q1 2024 N
Slide 9: Networks investments up 27% to Eur 1,213 M
Results Networks Presentation First Quarter 2024 Networks investments up 27% to Eur 1,213 M driven by new rate cases… Q1 ’24 NETWORKS INVESTMENTS (Eur M) Q1 ’24 NETWORKS INVESTMENTS BREAKDOWN 1,213 +27% 40% US 951 Distribution +6% vs 2023 29% Brazil Transmission +85% vs 2023 1,213 Eur M 21% UK 10% S
Slide 10: Renewables investments reach Eur 994 M
Results Renewables Presentation First Quarter 2024 Investments reach Eur 994 M, 38% in offshore wind Q1 ’24 RENEWABLE INVESTMENTS (Eur M) Q1 ’24 RENEWABLE INVESTMENT BREAKDOWN Storage 994 +75% vs 2023 +50% US Offshore Wind 36% +70% vs 2023 664 24% Spain 994 21% Other EU & Eur M Australia Onshore pro
Slide 11: Renewables: Production in Iberia
Results Renewables: Production in Iberia Presentation First Quarter 2024 10-year record production in Iberia with reserves at all-time high levels… RENEWABLE PRODUCTION IN Q1’24 ENERGY STORAGE1 MANAGEABLE RENEWABLE IBERIA RESERVES IN IBERIA ~10,600 ~2,240 ~8,900 GWh +18% GWh GWh +19% ~1,890 +30% ~8,
Slide 12: Offshore wind: '24-'26 plan progressing on schedule
Results Offshore Wind Presentation First Quarter 2024 Offshore wind: ’24-’26 plan progressing on schedule with ~1.6 GW already contributing to results… Accelerating progress in projects already secured… 1,260 MW Wikinger (350MW) Contributing 100% East Anglia 1 (715MW) and WoDS (195 MW) in operation
Slide 13: Additional growth opportunities for 2028-2030
Results Offshore Wind Presentation First Quarter 2024 …and increasing additional growth opportunities for 2028-2030 Happo – Noshiro (375 MW): Awarded all rights for the construction and operation • 39.9% Iberdrola’s stake Awarded auctions • Final Investment Decision in 2025-26 • Producing energy by
Slide 14: Improving cash flow & financial strength
Results Improving cash flow & financial strength Presentation First Quarter 2024 Financial strength: ongoing improvement driven by operating cash flow… Operating cash flow – FFO (Eur M) FFO/Adj. Net Debt (Last 12 months) 3,145 25.3% 25.0% +180 bp 3,007 +14% UK Retail 23.2% deficit 238 recovery 2,769
Slide 15: Analysis of results
Results Presentation First Quarter 2024 Analysis of results www.iberdrola.com | 15
Slide 16: Income Statement / Group
Results Income Statement / Group Presentation First Quarter 2024 EBITDA reaches Eur 5,857 M in Q1 2024 vs. Eur 4,065 M in Q1 2023… Eur M Q1 2024 Q1 2023 % Gross Margin 6,832 6,709 +1.8 Net Operating Expenses 78 -1,465 -105.4 Levies -1,053 -1,179 -10.7 EBITDA 5,857 4,065 +44.1 EBIT 4,501 2,738 +64.4
Slide 17: Key P&L impacts of the period
Results Key P&L impacts of the period Presentation First Quarter 2024 1Q 2024 affected by • Sale of Mexico assets cashed in on February 26th • Capital gain registered in Other Operating Income: Eur 1,717 M pre-tax and Eur 1,165 M post-tax 1Q 2023 affected by • Retail tariff deficit recovery in UK: E
Slide 18: Gross Margin / Group
Results Gross Margin / Group Presentation First Quarter 2024 A 33% improvement in Procurements vs. a 18% decrease in Revenues… Revenues (Eur M) Procurements (Eur M) 15,460.6 -18% 12,678.5 8,752.1 5,846.7 -33% Q1 2023 Q1 2024 Q1 2023 Q1 2024 … leads to a 2% growth in Gross Margin to Eur 6,832 M www.i
Slide 19: Net Operating Expenses / Group
Results Net Operating Expenses / Group Presentation First Quarter 2024 Excluding FX, Mexico capital gain and reconciliation impacts in the US, Net Operating Expenses increases 8.1% Net Operating Expenses (Eur M) Q1 2024 ex vs Q1 2023 ex Q1 2024 Mexico capital Q1 2023 Mexico capital gain gain (%) Net
Slide 20: Results by Business / Networks
Results Results by Business / Networks Presentation First Quarter 2024 Networks EBITDA reaches EUR 1,692 M, +2% vs. Q1 2023… Eur M Brazil 36% 24% Spain 1,691.7 21% United Kingdom United States 19% …driven by higher regulated asset base and tariffs www.iberdrola.com | 20
Slide 21: Results by Business / Networks
Results Results by Business / Networks Presentation First Quarter 2024 EBITDA EUR 404.6 M (-6.8%): SPAIN • Impacted by positive regularizations of investments recognized in Q1 23 (EUR 27 M). EBITDA GBP 305.6 M (+35.8%): UNITED KINGDOM • Higher contribution in Transmission, thanks to higher tariffs a
Slide 22: Results by Business / Energy Production and Customers
Results Results by Business / Energy Production and Customers Presentation First Quarter 2024 Energy Production and Customers EBITDA reaches Eur 4,155 M in Q1 2024 vs. Eur 2,414 M in Q1 2023 Eur M RoW Brazil 7% 3% +1% Mexico 7% Spain1 4,155.1 50% 2,413.5 2,438.0 1,717 United States 311 +16% 8% 2,438
Slide 23: Results by Business / Energy Production and Customers
Results Results by Business / Energy Production and Customers Presentation First Quarter 2024 EBITDA EUR 1,221.9 M (+2.7%): • Higher renewable production, along with lower procurement costs and levies, more than compensate: SPAIN • Lower prices. • Positive effect in gas management in Q1 2023. EBITDA
Slide 24: Results by Business / Energy Production and Customers
Results Results by Business / Energy Production and Customers Presentation First Quarter 2024 UNITED EBITDA USD 211.1 M (+26.6%): STATES • Positive performance of flexible generation fleet, improves results despite lower wind production (-6.6%). EBITDA EUR 182.9 M (+39.6%): RoW • Higher production (
Slide 25: EBIT / Group
Results EBIT / Group Presentation First Quarter 2024 EBIT grows to Eur 4,501 M in Q1 2024 (including Mexico capital gain) vs. Eur 2,738 M in Q1 2023 EBIT (Eur M) D&A and Provisions (Eur M) +2% +2% 1,717 2,738.0 2,783.5 -1,326.5 -1,356.4 311 356.5 +15% -152.2 -170.7 Provisions -1.204.2 -1,155.7 D&A Q
Slide 26: Net Financial Results / Group
Results Net Financial Results / Group Presentation First Quarter 2024 Net Financial Results up Eur 14 M to Eur 524 M, due to higher average debt… NET FINANCIAL RESULT (Eur M) COST OF DEBT -8 +13 5.08% -23 -524 - 10 bps +4 -510 4.98% Debt result +2 bps 3.65% 3.63% FX (ex NEO) Q1 2023 Debt FX Cost der
Slide 27: Financial ratios and Adjusted Net Debt / Group
Results Financial ratios and Adjusted Net Debt / Group Presentation First Quarter 2024 Solvency ratios improve vs. FY2023 thanks to the cash proceeds from Mexican deal ADJUSTED CREDIT METRICS ADJUSTED NET DEBT (Eur Bn) Mar 2023 Dec 2023 Mar 2024 47.8 44.9 Adjusted Net Debt / EBITDA 3.07x 3.32x 3.10x
Slide 28: Net Profit / Group
Results Net Profit / Group Presentation First Quarter 2024 Net Profit grows 85% to Eur 2,759.7 M and 7% to Eur 1,595 M, excluding Mexico capital gain Eur M +7% 1,165.2 2,759.7 1,485.4 1,595.4 2381 Net Profit Net Profit Q1 2024 Mexico Capital Net Profit Q1 2023 ex Mexico Capital gain gain after Taxes
Slide 29: Conclusions
Results Presentation First Quarter 2024 Conclusions www.iberdrola.com | 29
Slide 30: Improving our FY'24 net profit guidance
Results Conclusions Presentation First Quarter 2024 IMPROVING OUR FY ‘24 NET PROFIT GUIDANCE to “HIGH SINGLE DIGIT GROWTH”1 (excluding capital gains from asset rotation)… High single digit 5-7% 4,803 FY 2023 FY 2024e FY 2024e Net Profit Net Profit Net Profit FY 2023 Q1 2024 Results Presentation Resu
Slide 31: Delivering on our 2024-26 outlook
Results Conclusions Presentation First Quarter 2024 DELIVERING ON OUR 2024-26 OUTLOOK Higher contribution from investments ✓ Eur 2.4 Bn invested in Q1 2024, expecting EUR 12 Bn in FY‘24 New Rate Cases delivering higher results and cash flows Additional production driven by new Installed Capacity ✓ O
Slide 32: 2024 AGM will be held on May 17th
Results Conclusions Presentation First Quarter 2024 2024 AGM WILL BE HELD ON MAY 17TH Link to participate in 2024 AGM www.iberdrola.com | 32
Slide 33: Annex I: Iberdrola Retribución Flexible program July 2024
Results Presentation First Quarter 2024 Annex I “Iberdrola Retribución Flexible” program July 2024 www.iberdrola.com | 33
Slide 34: Iberdrola Retribución Flexible program July 2024
Results “Iberdrola Retribución Flexible” program July 2024 Presentation First Quarter 2024 - Board of Directors: Closing prices - LAST TRADING DATE: last day resolution for the execution considered for to buy Iberdrola shares and of the capital increase and determining the - Last day of participate
Slide 35: Annex II
Results Presentation First Quarter 2024 Annex II www.iberdrola.com | 35
Slide 36: Taxonomy alignment
Results Taxonomy alignment Presentation First Quarter 2024 CAPEX alignment with EU Taxonomy Q1 2024 FY 2023 0.7% 1.4% 9.3% 9.8% 90.0% 88.8% Eligible investments Eligible investments 99.2% of the eligible capex is aligned with EU Taxonomy www.iberdrola.com | 36
Slide 37: Financial strength
Results Financial strength Presentation First Quarter 2024 During Q1 main transactions were Eur 0.7 bn hybrid bond and Eur 0.5 bn from EIB loan continuing with the process of diversifying markets TOTAL SUSTAINABILITY PORTFOLIO: NEW DEALS SIGNED Q1 2024: Eur 2,664 M 69% of the total portfolio Hybrid
Slide 38: Liquidity and maturities
Results Liquidity and maturities Presentation First Quarter 2024 As of today, liquidity totals Eur 22.4 bn covering 26 months of financing needs with an average life of debt of 6 years 23.813 Cash 5,407 Credit lines 13,756 Available 5.810 4.865 4.286 financing 3.727 3.515 3,200 2024 2025 2026 2027 2
Slide 39: Diversified financing portfolio at competitive rates
Results Diversified financing portfolio at competitive rates Presentation First Quarter 2024 Our strategy of diversification in funding sources provides flexibility to tap the market… % DEBT BY INSTRUMENT FINANCIAL SOURCES Bond market Structured Bank loans • Main source of long-term financing. 0,5%
Slide 40: ESG financing
Results ESG financing Presentation First Quarter 2024 Out of the Eur 2.71 Bn raised in Q1 2024, Eur 2.5 Bn correspond to new Sustainability financing for a total portfolio of Eur 54.7 Bn in Sustainability transactions NEW SUSTAINABILITY DEALS Q1 2024: Eur 2,514 M TOTAL SUSTAINABILITY PORTFOLIO: Eur
Slide 41: ESG
Results ESG Presentation First Quarter 2024 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 Positiv
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