Slide 1: Results presentation First half
Results presentation First half 24 July 2024
Slide 2: Legal Notice: Disclaimer
Results Legal Notice presentation First half 2024 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 2024 fiscal year. As a consequence thereof, this document may not be disclosed or published, n
Slide 3: Legal Notice: Forward-looking statements
Results Legal Notice presentation First half 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 expect
Slide 4: Highlights of the period
Results presentation First half 2024 Highlights of the period www.iberdrola.com
Slide 5: Highlights of the period
Results Highlights of the period presentation First half 2024 Reported Net Profit of EUR 4,134 M vs EUR 2,521 M in H1 ’23 (+64%) Reported EBITDA of EUR 9,614 M vs 7,561 M in H1 ’23 (+27%) Strong Operating Performance: Recurrent EBITDA up +9% to Eur 7,897 M • Renewable production at all-time highs dr
Slide 6: EBITDA: Recurrent EBITDA up 9% to Eur 7,897 M
Results EBITDA presentation First half 2024 Recurrent EBITDA up +9% to Eur 7,897 M driven by growing investment, excellent execution and strong performance Tariff adjustments in the US, the UK and Brazil Recurrent EBITDA by geography Higher Asset Base (+7% y-o-y) UK Renewable energy production reach
Slide 7: Investments: Record investments of Eur 5,276 M, up 16%
Results Investments presentation First half 2024 Record investments of Eur 5,276 M, up +16% H1 ’24 INVESTMENTS by country (Eur M) H1 ’24 INVESTMENTS by business (Eur M) Other Energy Production & 5,276 Customers Corporate & other +23% vs. +16% H1 ‘23 34% US 4,555 22% UK Networks 5,276 Renewables 19%
Slide 8: Networks investments reaching Eur 2,708 M (+23%)
Results Networks presentation First half 2024 … reaching Eur 2,708 M (+23%) driven by new rate cases in Distribution and higher investments in Transmission… H1 ’24 NETWORK INVESTMENTS (Eur M) H1 ’24 NETWORK ASSET BASE BY GEOGRAPHY XX% 2,708 +23% 2,204 US Spain Distribution EUR 13.3 Bn EUR 9.1 Bn 61%
Slide 9: Renewables: investments up 10% to Eur 2,167 M
Results Renewables presentation First half 2024 Renewable investments up +10% to Eur 2,167 M with offshore wind representing 41% H1 ’24 RENEWABLE INVESTMENTS Storage • Germany Offshore Wind • US • UK • US • UK 2,167 • Australia Eur M • Iberia • France • Italia • Germany Onshore projects 3,100 MW of
Slide 10: Renewables: Offshore Wind
Results Renewables: Offshore Wind presentation First half 2024 Construction of all offshore wind projects included in the Plan on track… On track to deliver Eur 1.8 Bn of EBITDA by 2026 Unique position for further growth post ‘27 H1 ‘24 EBITDA FY ‘26 EBITDA Eur 400 M Eur 1.8 Bn 3.6 GW participating
Slide 11: Manageable Renewables: Production in Iberia
Results Manageable Renewables: Production in Iberia1 presentation First half 2024 Hydro production up 49% year-on-year... HYDRO PRODUCTION IN IBERIA (GWh) Increasing role of pumped storage 12,500 +49% 8,350 Recurrent production in any hydro scenario… …providing stability to the system… +7% 3,050 2,8
Slide 12: Routes to Market
Results Routes to Market presentation First half 2024 Reinforcing our activity in PPA markets… Wholesale Price Evolution Bilateral contracting Average electricity wholesale price in Iberia (€) Increasing our global PPA portfolio Average electricity wholesale price the in UK (£) 212 ◆ +3 new TWh sign
Slide 13: Additional growth: Networks
Results Additional growth: Networks presentation First half 2024 Positioned to benefit from upcoming boom in Network investments… More Network Investment Opportunities ◆ Already securing medium term ◆ GLOBAL (IEA) – Network investments opportunities : need to double by 2030 • New investments in tran
Slide 14: Additional growth: New Recurrent Storage Opportunities
Results Additional growth: New Recurrent Storage Opportunities presentation First half 2024 … storage infrastructures, due to electrification and renewable penetration… New Recurrent Storage Opportunities ◆ Increase in price volatility driving new >100 M kWh 20 M kWh 150 M kWh storage1 of existing s
Slide 15: Additional growth: Data Centres
Results Additional growth presentation First half 2024 …and opportunities in Renewables and Customers due to new demand sources Opportunities ◆ Growth in demand: ◆ Already signed PPAs for >8 TWh/y with the main energy • Strong power demand growth consumers for data centres in the US, UK, Spain and •
Slide 16: Improving cash flow & financial strength
Results Improving cash flow & financial strength presentation First half 2024 H1 cash flow increases 98%, or+8% in recurrent terms… H1 ‘24 Cash flow (Eur M) FFO1/Adj. Net Debt 11,362 +98% Mexico +10 bp 25.0% 5,437 cash in 24.9% UK Retail 5,731 +8% 5,925 deficit 258 recovery 5,473 H1 2023 H1 2024 H1
Slide 17: Annual General Meeting
Results Annual General Meeting presentation First half 2024 98% AVERAGE FAVOURABLE VOTE WITH 75% QUORUM Group of Proposals Average vote in favour Corporate Management and Results 99.5% Corporate Governance and Sustainability System 98.7% Remunerations 98.3% Board of Directors 97.8% Authorization and
Slide 18: Shareholder remuneration
Results Shareholder remuneration presentation First half 2024 Total shareholder remuneration increases by 11.4% to 0.558 EUROS PER SHARE Total shareholder remuneration €/Share 0.558 €/Share +11.4% 0.501 2022 2023 (payable in 2023) (payable in 2024) Supplementary … Will allow us to reach a net debtdi
Slide 19: Analysis of results
Results presentation First half 2024 Analysis of results www.iberdrola.com
Slide 20: Income Statement / Group
Results Income Statement / Group presentation First half 2024 EBITDA reaches Eur 9,614 M in H1 2024 vs. Eur 7,561 M in H1 2023… Eur M H1 2024 H1 2023 % Gross Margin 12,489 12,124 +3.0 Net Operating Expenses -1,409 -2,905 -51.5 Levies -1,466 -1,658 -11.5 EBITDA 9,614 7,561 +27.2 EBIT 6,859 4,911 +39.
Slide 21: Key P&L impacts of the period
Results Key P&L impacts of the period presentation First half 2024 H1 2024 affected by • Sale of Mexico assets cashed in on February 26th • Capital gain registered in EBITDA: Eur 1,717 M pre-tax and Eur 1,165 M post-tax H1 2023 affected by • Retail tariff deficit recovery in UK: Eur 337 M pre-tax an
Slide 22: Gross Margin / Group
Results Gross Margin / Group presentation First half 2024 A 28% improvement in Procurements vs. a 14% decrease in Revenues… Revenues (Eur M) Procurements (Eur M) 26,263.2 -14% 22.637.0 14,139.6 10,147.8 -28% H1 2023 H1 2024 H1 2023 H1 2024 … leads to a 3% growth in Gross Margin to Eur 12,489 M www.i
Slide 23: Net Operating Expenses / Group
Results Net Operating Expenses / Group presentation First half 2024 Excluding Mexico capital gain, Net Operating Expenses increases 7.7% and excluding reconciliation impacts in the US, pension adjustments in the UK and other minor impacts, Net Operating Expenses increases 2.8% Net Operating Expenses
Slide 24: Levies / Group
Results Levies / Group presentation First half 2024 Levies reaches Eur 1,466 M in H1 2024 vs. Eur 1,658 M in H1 2023… +4% 1,728.3 1,657.6 79 1,466.3 183 H1 2024 H1 2024 H1 2023 Social Bonus Hydro Canon reported normalized Excluding court rulings in Spain, Levies grow up 4% www.iberdrola.com | 24
Slide 25: Results by Business / Networks
Results Results by Business / Networks presentation First half 2024 Networks EBITDA reaches EUR 3,269 M, +5% vs. H1 2023… Eur M Brazil 34% 25% Spain 3,269.4 22% United Kingdom United States 19% …driven by higher regulated asset base and tariffs www.iberdrola.com | 25
Slide 26: Results by Business / Networks
Results Results by Business / Networks presentation First half 2024 EBITDA EUR 814.5 M (-3.7%): SPAIN • Impacted by positive regularizations of investments recognized in H1 23 (EUR 27 M). EBITDA GBP 606.3 M (+18.2%): UNITED KINGDOM • Higher contribution in Transmission, thanks to higher asset base a
Slide 27: Results by Business / Energy Production and Customers
Results Results by Business / Energy Production and Customers presentation First half 2024 Energy Production and Customers EBITDA reaches Eur 6,323 M in H1 2024 vs. Eur 4,458 M in H1 2023 driven by Mexico capital gain and better performance… Eur M RoW Brazil 7% 3% +3% Mexico 5% 6,322.8 United States
Slide 28: Results by Business / Energy Production and Customers
Results Results by Business / Energy Production and Customers presentation First half 2024 EBITDA EUR 2,486.0 M (+20.7%), thanks to 92% non-emitting production in Iberia: • Higher manageable renewable production (4.1 TWh) including pumping storage IBERIA • Lower procurement costs • Lower levies Whic
Slide 29: Results by Business / Energy Production and Customers
Results Results by Business / Energy Production and Customers presentation First half 2024 EBITDA EUR 314.3 M (+48.5%): RoW • Higher production (+0.9 TWh,+34%) due to the gradual entry into operation of St. Brieuc offshore windfarm (496 MW), already at full capacity, and more onshore capacity instal
Slide 30: EBIT / Group
Results EBIT / Group presentation First half 2024 EBIT grows 39.7% to Eur 6,859 M in H1 2024 (including Mexico capital gain) vs. Eur 4,911 M in H1 2023 and 4.7% to Eur 5,142 M excluding Mexico capital gain +4% -2,754.4 -2,649.7 Provisions -304.1 -340.1 -2,309.6 D&A -2,450.3 H1 2023 H1 2024 D&A and p
Slide 31: Net Financial Results / Group
Results Net Financial Results / Group presentation First half 2024 Net Financial Result improves Eur 279 M to Eur 848 M due to better non-debt result, mainly by FX derivatives results (MXN) and capitalized interests NET FINANCIAL RESULT (Eur M) COST OF DEBT -36 -5 -1,127 +49 +118 5.05% - 16 bps +153
Slide 32: Financial ratios and Adjusted Net Debt / Group
Results Financial ratios and Adjusted Net Debt / Group presentation First half 2024 Solvency ratios improve driven by an increase in the H1 FFO together with… ADJUSTED CREDIT METRICS ADJUSTED NET DEBT (Eur Bn) Dec 2023 Jun 2024 47.8 45.2 Adjusted Net 3.32x 3.06x Debt / EBITDA FFO / Adjusted 23.2% 25
Slide 33: Net Profit / Group
Results Net Profit / Group presentation First half 2024 Recurrent Net Profit grows to Eur 2,969 M, +18% vs H1 23 reported net profit… Eur M +18% Capital gains from Mexico Transaction 4,134 2,969 1,165 2,521 Non-recurrent items +24% 2,403 (258) 140 UK Retail Mexico deficit1 provision2 Reported Recurr
Slide 34: Conclusions
Results presentation First half 2024 Conclusions www.iberdrola.com
Slide 35: Conclusions: Consolidation of H1 '24 trends
Results Conclusions presentation First half 2024 CONSOLIDATION OF H1 ‘24 TRENDS PLUS ADDITIONAL GROWTH FROM NEW INVESTMENTS… Consolidation of H1 ’24 trends… Tariff adjustments in the US and the UK + Higher Asset Base (+7% y-o-y) Record renewable production & new capacity: +800 MWs offshore (Baltic E
Slide 36: Increase in FY guidance to double-digit growth
Results Conclusions presentation First half 2024 …DRIVE AN INCREASE IN OUR FY 24 GUIDANCE TO “DOUBLE-DIGIT GROWTH”1 (excluding capital gains from asset rotation) Double-digit growth 4,803 EUR M FY 2023 FY 2024e Net Profit Net Profit Excluding capital gains from asset rotation 1. Based on 2023 report
Slide 37: Annex
Results presentation First half 2024 Annex www.iberdrola.com
Slide 38: Liquidity and maturities
Results Liquidity and maturities presentation First half 2024 As of today, liquidity totals Eur 21.7 Bn covering 24 months of financing needs with an average life of debt of 6 years… 26,227 Cash 5,404 Available Credit lines 5,877 4,924 4,298 3,428 financing 14,410 2,346 2,203 1 2024 2025 2026 2027 2
Slide 39: Financial diversification
Results Financial diversification presentation First half 2024 98% of H1 transactions signed (Eur 4.7 Bn (1)) are Sustainability transactions, reaffirming Iberdrola's commitment TOTAL SUSTAINABILITY PORTFOLIO: NEW DEALS SIGNED H1 2024: Eur 4,771 M (1) 70% of the total portfolio Hybrid Bond Commercia
Slide 40: ESG financing
Results ESG financing presentation First half 2024 Out of the Eur 4.8 (1) Bn raised in H1 2024, Eur 4.7 Bn correspond to new Sustainability financing for a total portfolio of Eur 56.6 Bn in Sustainability transactions NEW SUSTAINABILITY DEALS H1 2024: Eur 4,666 M (1) TOTAL SUSTAINABILITY PORTFOLIO:
Slide 41: Diversified debt portfolio at competitive rates
Results Diversified debt portfolio at competitive rates presentation First half 2024 Our strategy of diversification in funding sources provides flexibility to tap the market… % DEBT BY INSTRUMENT FINANCIAL SOURCES Bond market Bank loans • Main source of long-term financing. Structured 12,2% • Stron
Slide 42: ESG
Results ESG presentation First half 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 Positive T