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A flexible value creation model Anticipating market trends. Roadshow Presentation Nine Months 2008 results. Agenda. Highlights of the Period. Analysis of Results. Financing. Conclusion. Annex: Results by Business. 2. Highlights of the Period.

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A flexible value creation model

Anticipating market trends

RoadshowPresentation

Nine Months 2008 results


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Agenda

Highlights of the Period

Analysis of Results

Financing

Conclusion

Annex: Results by Business

2


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Highlights of the Period

EBITDA reaches Eur 4,922 MM, growing +29.1%

Positive evolution of all business units

Strong contribution from ScottishPower and Renovables

Low risk growth and value creation model

Diversification by geography and business

Flexibility in the management of the Strategic Plan

Ability to adapt to new environment

Far-sighted financial management, anticipating market trends

Leverage below 50% after Energy East transaction

Net Profit up 53.8% to Eur 2,481 MM

3


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Highlights of the Period - Internationalisation

Output +23%: Growth in International and Renewables

Output (GWh)

Installed capacity (MW)

+23%

Cogeneration

1%

Fuel

4%

Coal

11%

Hydro

24%

106,442

86,773

27%

Latam

19,3%

27%

18%

ScottishPower

13%

13%

Renewables

Wind

20%

11%

CCGTs

31%

Traditional Energy

Spain

49%

42%

Nuclear

8%

9M 2007

9M 2008

52% of emission-free capacity


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Highlights of the Period - ScottishPower

ScottishPower EBITDA reaches Eur 1,373 MM,

28% of Group total

Output increases 10% and energy distributed up 2% vs. 9M 2007

Synergies and cost cutting:

Net Op. Expenses down 10% in homogeneous terms and local currency

Demand stability

Regulated Business contributes close to 50% of EBITDA

Increasing results while planning the long term


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Highlights of the Period - Renovables

  • Achieving installation commitments: 2,000 MW in the year

Capacity increases by 1,389 MW (+70.5%), to 8,487 MW

Output up 83.6%, to 12,095 GWh

EBITDA reaches Eur 768 MM, already accounting for 16% of Group total

Continuing regulatory support: PTCs extension in USA

Flexible business model,

with ability to adapt to the current environment


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Highlights of the Period – Energy East

  • Completion of Energy East transaction, …

Closed in shorter period than other previous transactions

Funds obtained more than 1 year in advance of the closing date

Approvals obtained under satisfactory conditions

Regulated business: recurrent generation of Cash-flows

Geographical diversification: AAA country and legal security

Complying with Group’s financial criteria

Positive impact in EPS and Cash-flow per share from the first year

… becomes a further step in the execution

of the Strategic Plan 2008-2010


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Highlights of the Period - Efficiency

Efficiency improvement: Basic Margin increases

5% more than Net Operating Expenses, …

Eur MM

Growth 9M ´08 vs. 9M ´07

+34.3%

7,705.4

+29.3%

2,220.8

Basic Margin

Net Op.

Expenses

… with strongperformance in

Spanish and ScottishPower businesses

8


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Highlights of the Period - EBITDA

EBITDA up 29.1% to Eur 4,922 MM

EBITDA by business

EBITDA growth

MM Eur

Renovables

16%

Liberalised Spain

27%

+25

4,921.9

+555

-63

Latam

& others

15%

+409

+184

3,811.6

Regulated Spain

15%

Renov.

9M

2008

9M

2007

Non

Energy

Latam

UK

Trad. En. Spain

UK

28%

International and Renovables account for 90% of the growth


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Highlights of the Period – Net Profit

Net Profit up 53.8% to Eur 2,481.3 MM …

Net Profit (Eur MM)

Cash-flow* (Eur MM)

+53.8%

+30.6%

2,481.3

3,448.1

1,613.0

2,640.3

9M 07

9M 08

9M 07

9M 08

… Generated cash-flow reaches Eur 3,448 MM

(*) Net Profit + Amortizations –Equity income – Non recurrent items


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Highlights of the Period – Tariff Insufficiency

Tariff Insufficiency

Past-Present

Future

  • Electricity Sector Law guarantees the principle of tariff sufficiency

  • Recognition of Deficits

  • In case of non compliance, the Spanish State would be liable

  • Commitment from the Government to its eradication before 2012

  • Additive Last Resource Tariff simplifies its solution

Effective liberalisation of 50% of the market

from 1 July 2008


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Highlights of the Period

Low risk growth and value creation model,

diversified by business and countries…

Partially

regulated

(Renovables)

14%

Regulated

45%

Liberalised

41%

  • Predictable revenues

  • Increasing cash-flows

  • Production sold

  • Institutional support

  • Spain: Growing importance of forward markets

  • UK: Production vs hedged market

    • Predictable revenues

    • Stable cash-flows

    • Legal security

    Spain

    United Kingdom

    Mexico

    Brazil

    USA (EAS)

    Spain

    United Kingdom

    USA

    Rest of World

    Spain

    United Kingdom

    … stable in revenues and cash-flow generation,

    with 85% of EBITDA generated in AAA countries

    12


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    Highlights of the Period

    Inelastic demand within the economic cycle

    Electricity demand*

    (1981-2007)

    % Output

    Liberalised Businesses

    Pool Spain

    Forward Spain

    + UK

    Spain:

    No fall in demand

    in the last 25 years

    30%

    70%

    USA and UK:

    Fall in demand never > 3%

    70% of liberalised businesses production covered:

    Spanish forward markets and UK clients

    13

    *Source: 1981-2005 Energy Information Administration; 2006-2007 Economist Intelligence Unit


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    Highlights of the Period

    Ability to adapt the Strategic Plan

    to the new environment…

    Normalised markets

    Current situation

    Organic investments

    Active portfolio management

    By business

    By countries

    • Flexibility of Eur 2,000 MM per year of less net investments

    • Investment criteria

    • Maximising the Net Present Value

    • Spain

    • USA

    • United Kingdom

    • Latam & others

    • Renewables

    • Regulated

    • Liberalised

    • Others

    Non organic investments: EAS

    … without changing Net Profit targets for 2010

    14


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    Highlights of the Period

    • Financial management with growth financed in advance

    • in order to maintain A rating

    Financing growth in advance (2007)

    Financial data* (Eur MM)

    ScottishPower

    50% Debt-50% Equity

    Investments

    2007-2008

    Eur 30,000 MM

    IPO Renovables

    20% capital increase

    Leverage

    47.2% 9M ´08

    vs. 54.3% in ´06

    Energy East

    100% Equity

    Available Liquidity reaches Eur 9,215 MM

    *Figures as of September 2008, including Energy East transaction. Leverage excludes tariff insufficiency


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    Agenda

    Highlights of the Period

    Analysis of Results

    Financing

    Conclusion

    Annex: Results by Business

    16


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    Income Statement - Group

    International and Renewables

    account for 89% of Group EBITDA growth

    9M 2008

    9M 2007

    Var. %

    Eur MM

    17,808.0

    11,376.5

    +56.5

    Net Sales

    7,388.1

    5,726.7

    +29.0

    Gross Margin

    7,705.4

    5,737.6

    +34.3

    Basic Margin

    -2,220.8

    -1,717.4

    +29.3

    Net Op. Expenses

    4,922.0

    3,811.5

    +29.1

    EBITDA

    3,316.7

    2,522.4

    +31.5

    Operating Profit (EBIT)

    -759.9

    -620.5

    +22.5

    Net Finance Cost

    638.5

    262.0

    +143.8

    Exceptional Items

    +Equity Income

    2,481.3

    1,613.0

    +53.8

    Net Profit

    17


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    Income Statement - Group

    Recurrent Proforma Income Statement*

    shows double digit growth at operating levels

    +13.4%

    Basic Margin

    +11.3%

    EBITDA

    EBITDA grows +16.1% in local currency,

    proving the better than expected operating performance

    18

    *Excluding MTM impact


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    Net Sales - Group

    Net sales up +56.5%, to Eur 17,808.0 MM

    Eur MM

    Net Sales

    Procurements

    +6,431.5 MM

    +4,332.9 MM

    17,808.0

    11,376.5

    9,964.5

    5,631.6

    9M 2008

    9M 2008

    9M 2007

    9M 2007

    Procurements up +76.9%, to Eur 9,964.5 MM

    19


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    Gross Margin - Group

    Group Gross Margin +29.0% to Eur 7,388.1 MM …

    Gross Margin by business

    Gross Margin (Eur MM)

    +1,661.4 MM

    Non Energy

    7%

    Liberalised

    Spain

    26%

    7,388.1

    Latam

    11%

    5,726.7

    7,388.1

    Eur MM

    Regulated

    Spain

    16%

    Scottish

    Power

    25%

    9M 2008

    9M 2007

    Renovables

    15%

    … with International and Renewables

    accounting for 51% of the Group Gross Margin

    20


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    From Gross Margin to Basic Margin

    Basic Margin up +34.3%

    including the net effect of CO2 allowances

    Eur MM

    Basic Margin: CO2 allowances net effect

    7,843.6

    +317.3

    7,705.4

    7,388.1

    -455.5

    +36.5%

    +34.3%

    +29.0%

    Basic Margin

    Gross Margin

    ex-CO2

    CO2 allowances

    consumed

    Gross Margin reported

    CO2 allowances allocated

    CO2:Net Effect Eur -138.2 MM


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    Net Operating Expenses - Group

    Net Operating Expenses up +29.3%, to Eur 2,220.8 MM, less than Basic Margin (+34.3%), maintaining the efficiency policy and cost control, …

    Eur MM

    Basic Margin vs Net. Op. Exp

    Net. Op. Exp. by origin

    % vs.

    9M 2007

    9M 2008

    +34.3%

    +15.8%

    1,363.1

    Iberdrola

    +131.4%

    7,705.4

    Iberdrola Renovables

    296.4

    +29.3%

    +36,1%

    2,220.8

    561.3

    Scottish Power

    Total

    Net. Op. Exp.

    Basic Margin

    2,220.8

    +29.3%

    … with non recurrent effects included

    in First Nine Months Operating Expenses

    22


    Slide23 l.jpg

    Levies - Group

    Levies up by Eur 354.0 MM (+169.7%) …

    -562.7

    -300.9

    +169.7%

    -20.4

    -208.7

    -32.7

    9M 2008

    9M 2007

    Higher activity

    Scottish

    Power

    CO2 rights clawback

    … driven by the inclusion of the CO2 rights clawback

    as an additional levy

    23


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    EBITDA - Group

    Group EBITDA +29.1% to Eur 4,922.0 MM …

    Eur MM

    4,922.0

    1,373.3

    N/A

    767.9

    290.4

    +113.7%

    672.9

    1,817.4

    -17.8%

    +3.8%

    +29.1%

    11.3%

    EBITDA

    Traditional

    Energy Spain*

    Scottish

    Power

    Latam

    Non

    Energy

    Renovables

    … driven by ScottishPower (Eur 1,373.3 MM)

    and Renovables (Eur 767.9 MM)

    24

    *Generation + Supply+ Gas + Distribution


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    EBIT - Group

    Group EBIT up 31.5%, to Eur 3,316.7 MM

    Eur MM

    EBIT

    % vs.

    9M 2007

    9M 2008

    +794.3 MM

    D&A

    -1,483.5

    +27.5%

    3,316.7

    - Purchase Price Allocation*

    -166

    2,522.4

    -48

    Renovables

    Provisions

    -121.8

    -2.8%

    Total

    -1,605.3

    +24.5%

    9M 2008

    9M 2007

    D&A and Provisions up +24.5%

    25

    * Assets purchase prices allocation


    Slide26 l.jpg

    Net Finance Costs - Group

    Net Finance Costs: Eur -759.9 MM (+22.5%), …

    Net Finance Costs ( Eur MM)

    Average Cost of Debt

    +139.4 MM

    -759.9

    -620.5

    5.12%

    5.16%

    9M 2007

    9M 2008

    9M 2008

    9M 2007

    26


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    PBT - Group

    PBT up 47.7% to Eur 3,195.3 MM…

    PBT

    vs.

    9M 2007

    9M 2008

    +1,031.5 MM

    EBIT

    3,316.7

    +794.3

    3,195.3

    Net Fin. Costs

    -759.9

    -139.5

    2,163.8

    Equity Method

    71.1

    +23.1

    Non. Rec. Assets

    567.4

    +353.6

    PBT

    3,195.3

    +1,031.5

    9M 2008

    9M 2007

    27


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    Net Profit - Group

    Net Profit reaches Eur 2,481.3 MM (+53.8%), …

    Net Profit

    Eur MM

    PBT

    3,195.3

    2,481.3

    +47.7%

    +53.8%

    Lower Effective Tax Rate

    20.2%

    1,613.0

    Lower Corporate Tax Rate

    One-off net tax provision release

    9M 2007

    9M 2008

    … fully diluted EPS grows +53.8%, up to 0.50 Eur/share

    28


    Slide29 l.jpg

    Agenda

    Highlights of the Period

    Analysis of Results

    Financing

    Conclusion

    Annex: Results by Business

    29


    Slide30 l.jpg

    Tariff Deficit

    Tariff Deficit reaches Eur 1,947 MM at 9M 2008, …

    Eur MM

    +504

    +1,947

    +1,893

    -450*

    -386

    -64

    Iberdrola Total

    Tariff Deficit H1 ´08

    Funds collected

    July 1st ´08*

    Q3 Tariff Deficit

    Iberdrola Total

    Tariff Deficit 9M ´08

    … that will be securitised

    as it is considered as quasi sovereign debt

    * Includes Eur 367 MM of 2007 Tariff Deficit + Eur 64 MM of interest + Eur 19 MM of 2008 tariff Deficit


    Slide31 l.jpg

    Financial Debt – Adjusted Leverage

    Leverage improves to 47.2% ex tariff insufficiency impact

    Net Debt and Equity* (Eur MM)

    Leverage

    9M 2007

    9M 2008

    49.0%

    48.5%

    Adjusted Net Debt

    23,482

    28,040

    Tariff Insufficiency

    795

    1,947

    Ex tariff insufficiency impact

    47.6%

    Adjusted Net Debt

    Ex insufficiency

    22,687

    26,093

    47.2%

    Equity

    24,958

    29,174

    9M 2007

    9M 2008

    • Excluding Tax equity Investors (2007: Eur 658 MM, 2008: 665 MM)

    31


    Slide32 l.jpg

    Financial ratios

    With an improvement in financial ratios …

    FFO* / Interest

    RCF**/ Net Debt

    FFO* / Net Debt

    21.3%

    5.2

    16.2%

    19.8%

    15.1%

    4.9

    19.4%

    4.6

    14.6%

    18.8%

    14.1%

    4.5

    9M 2007

    9M 2008

    9M 2007

    9M 2008

    9M 2007

    9M 2008

    Including Tariff Insufficiency

    Excluding Tariff Insufficiency

    … even after the inclusion of Energy East

    NOTE: Not including TEI

    * FFO = Net Profit + Amortizations – Equity Income

    ** RCF = FFO – Dividends

    32


    Slide33 l.jpg

    Financial Debt- Debt Analysis

    Financial Breakdown Summary*

    Currency Structure

    Interest Rate Structure

    Type of debt

    Loans in

    foreign currency

    3%

    EMTN

    3%

    29%

    33%

    31%

    7%

    35%

    25.3%

    26.1%

    2%

    4%

    34%

    24%

    65%

    65%

    14.4%

    65%

    65%

    17.0%

    56%

    38%

    $ Market

    9.0%

    Loans

    in Euros

    6.4%

    Other bonds

    ECP

    1.8%

    Dom.Com.

    Paper

    9M 2007

    9M 2008

    9M 2007**

    9M 2008**

    Capped

    Floating

    Real & Others

    GBP

    Fixed

    Dollar

    Euro

    *All figures include the impact of Energy East

    **After deducting tariff deficit. Including tariff deficit Q3 ´07 floating would have been 34.7%, and Q3 ´08: 37.2%.


    Slide34 l.jpg

    Financial Debt - Analysis by Maturity

    Iberdrola debt maturity profile*

    Average maturity of debt

    (Eur millions)

    2,882

    41

    5.8 yrs

    5.0 yrs

    2,164

    2,141

    2,164

    293

    389

    303

    2,841

    1,871

    1,752

    1,861

    2009

    2010

    2011

    2012

    9M ‘07

    9M ‘08

    IBE ex EAS

    EAS

    Increasing average maturity of Debt to 5.8 years

    *Does not include credit line draw downs


    Slide35 l.jpg

    Liquidity Analysis*

    Strong liquidity remaining after EAS transaction

    Limit

    Withdrawn

    Available

    (Eur millions)

    1,644

    Cash & Short Term Fin. Invest.

    -

    1,644

    542

    77

    465

    Credit Lines

    < 1 year

    6,376

    8,562

    2,186

    Credit Lines

    end ´09

    Credit Lines

    2< years <3

    3,843

    3,626

    217

    Credit Lines

    > 3 years

    1,294

    -

    1,294

    Total

    15,885

    6,670

    9,215

    *Figures include impact of Energy East transaction and EIB Eur 600 MM Credit Lines signed on 8 October 2008.


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    Agenda

    Highlights of the Period

    Analysis of Results

    Financing

    Conclusion

    Annex: Results by Business

    36


    Slide37 l.jpg

    Conclusions

    Strong evolution in the First Nine Months of 2008…

    Positive results from all business units

    Strong contribution from International Businesses

    … that allow us to reaffirm 2008 EPS growth above 27%,

    in line with DPS growth

    37


    Slide38 l.jpg

    Conclusions

    A sound business model in the current environment, …

    Recurrent Cash-flows

    generation

    Diversification by businesses and countries

    Flexibility

    in investments

    Financial solidity

    … that allows us to maintain Net Profit target for 2010

    38


    Slide39 l.jpg

    Agenda

    Highlights of the Period

    Analysis of Results

    Financing

    Conclusion

    Annex: Results by Business

    39


    Slide40 l.jpg

    Results by Business

    Liberalised Business Spain

    Moderate demand growth (+2.0%) and higher pool prices …

    Ordinary Regime Output (GWh)

    Pool Price (*) & CO2 (**)

    GWh

    +2.8%

    65.4

    €/MWh

    +28.5 €/MWh

    41,481

    40,341

    36.9

    €/MWh

    -63%

    Coal + Fuel

    23.3 €/Tn

    +21,9 €/Tn

    +58%

    CCGT

    -38%

    Hydro

    1.4 €/Tn

    9M ´07

    9M ´08

    +19%

    Nuclear

    +14.6 €/MWh

    Avg. Fuel Cost (€/MWh)(**)

    51.6

    37.0

    … with production increasing in the period (+2.8%)

    (*)Average Pool price for the Spanish System. Excludes capacity payments and ancilliary services

    (**) Iberdrola CO2 and Thermal Fuels Average Cost

    40


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    Results by Business

    Liberalised Business Spain

    EBITDA increases +16.3%, to Eur 1,169.0 MM…

    EBITDA (Eur MM)

    Financial Highlights

    Eur MM

    +16.3%

    9M 2008

    % vs.

    9M 2007

    1,169.0

    1,005.4

    1,896.7

    +27.0%

    Gross Margin

    Net. Op. Exp.

    -508.1

    +15.2%

    EBITDA

    1,169.0

    +16.3%

    9M 2007

    9M 2008

    41


    Slide42 l.jpg

    Results By Business

    Regulated Business Spain

    EBITDA up +7.9%, to Eur 719.9 MM

    Operating Highlights

    Financial Highlights

    Eur MM

    9M 2008

    % vs.

    9M 2007

    Higher regulated revenues

    Gross Margin

    1,174.2

    +5.7%

    Net Op. Exp.

    +3.9%

    -372.0

    Cost Control

    EBITDA

    +7.9%

    719.9

    Improving from EBITDA increase of +3.6% in H1 ´08

    42


    Slide43 l.jpg

    Results By Business

    Renovables

    EBITDA up +113.7%, up to Eur 767.9 MM

    Financial Highlights

    Operating Highlights

    Eur MM

    % vs.

    9M 2007

    9M 2008

    Installed capacity increases 70.5%, up to 8,487 MW

    1,085.2

    +119.5%

    Gross Margin

    Production rises 83.6%

    to 12,095 GWh

    -296.4

    +131.4%

    Net Op. Exp.

    10.9% increase in average power price to 83.3 €/MWh

    EBITDA

    767.9

    +113.7%

    … with international businesses

    already accounting for over 40% of EBITDA

    43


    Slide44 l.jpg

    Results By Business

    ScottishPower

    ScottishPower contributes Eur 1,373.3 MM

    or 27.9% of the Group´s EBITDA, …

    Eur MM

    MtM

    TOTAL

    SPW

    Corp.

    Wholesale& Retail

    Networks

    Gas (Canada)

    TOTAL

    1,679.3

    166.2

    1,845.5

    Gross Margin

    979.2

    678.8

    22.9

    -1.6

    1,837.0

    166.2

    2,003.2

    Basic Margin

    1,136.9

    678.8

    22.9

    -1.6

    -561.3

    -

    -561.3

    Net Op. Exp.

    -487.6

    -66.1

    -8.1

    0.5

    1,207.1

    166.2

    1,373.3

    EBITDA

    638.4

    556.8

    14.3

    -2.4

    … despite Eur -214.5 MM of negative fx impact at EBITDA level

    44


    Slide45 l.jpg

    Results By Business

    Latin America

    Latam EBITDA grows +3.8%, to Eur 672.9 MM

    Effect of currency evolution

    Financial Highlights

    Eur MM

    Eur MM

    9M 2008

    % vs.

    9M 2007

    +7.9%

    +3.8%

    848.2

    +3.5%

    Gross Margin

    699.0

    672.9

    -173.4

    +4.4%

    Net Op. Exp.

    672.9

    +3.8%

    EBITDA

    EBITDA

    In local currency

    Reported

    EBITDA

    45


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    Results By Business

    Latin America

    Brazil

    Mexico

    Business

    evolution

    Demand +5.6%

    +24.2% more production

    Lower recovery regulatory assets

    Tariff Revision Distribution Companies

    -14.2% exchange rate

    +5.1% exchange rate

    Contribution

    to financial statements

    388.9

    284.0

    EBITDA (Eur MM)

    EBITDA (Eur MM)

    46


    Slide47 l.jpg

    Results By Business

    Non energy + Engineering

    Results affected by real estate lower contribution

    Gross Margin Breakdown

    Financial Highlights (Eur MM)

    Iberdrola Inmobiliaria

    9M 2008

    % vs.

    9M 2007

    Engineering &

    Construction

    17%

    538.2

    -1.0%

    Gross Margin

    IBV

    11%

    43%

    -242.4

    +31.7%

    Net Op. Exp.

    29%

    290.4

    -17.8%

    EBITDA

    Other

    Services

    47


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    Results By Business

    Iberdrola Inmobiliaria

    Iberdrola Inmobiliaria made Eur 77.9 MM EBITDA

    and Eur 40 MM of Net Profit in 9M 2008 …

    Gross Margin Breakdown

    Financial Highlights

    Eur MM

    Residential

    9M 2008

    % vs.

    9M 2007

    Rentals

    11%

    22%

    90.4

    -40.1%

    Land

    Gross Margin

    15%

    44%

    33%

    -11.9

    -29.4%

    Net Op. Exp.

    51%

    77.9

    -40.6%

    EBITDA

    Properties

    … despite worse than expected market conditions

    48

    48


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    Results By Business

    Engineering & Construction

    EBITDA up +2.2% to Eur 86.6 MM,

    despite lower activity in Spanish Networks, …

    Backlog Breakdown 9M ´08

    Financial Highlights*

    Eur MM

    Eur MM

    2,559

    9M 2008

    % vs.

    9M 2007

    17%

    234.1

    +30.9%

    Gross Margin

    83%

    +56.0%

    Net Op. Exp.

    -144.6

    Net Op. Exp

    86.6

    +2.2%

    EBITDA

    EBITDA

    Spain

    International

    … recovering from -1.3% loss in H1 ´08,

    due to higher activity and growth of international contribution

    49

    * Includes REE works


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    Legal Notice

    DISCLAIMER

    This document has been prepared by Iberdrola, S.A. (the “Company”) exclusively for use during the presentation of financial results of the third quarter of the 2008 fiscal year. As a consequence thereof, this document may not be disclosed or published, nor used by any other person or entity, for any other reason without the express and prior written consent of Iberdrola, S.A.

    Iberdrola, S.A. does not assume liability for this document if it is used with a purpose other than the above.

    The information and any opinions or statements made in this document have not been verified by independent third parties; therefore no express or implied warranty is made as to the impartiality, accuracy, completeness or correctness of the information or the opinions or statements expressed herein.

    Neither Iberdrola, S.A. nor its subsidiaries or other companies of the Iberdrola Group or its affiliates assume liability of any kind, whether for negligence or any other reason, for any damage or loss arising from any use of this document or its contents.

    Neither this document nor any part of it constitutes a contract, nor may it be used for incorporation into or construction of any contract or agreement.

    Information in this document about the price at which securities issued by Iberdrola, S.A. have been bought or sold in the past or about the yield on securities issued by Iberdrola, S.A. cannot be relied upon as a guide to future performance.

    IMPORTANT INFORMATION

    This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Spanish Securities Market Law (Law 24/1988, of July 28, as amended and restated from time to time), Royal Decree-Law 5/2005, of March 11, and/or Royal Decree 1310/2005, of November 4, and its implementing regulations.

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    In particular, this communication does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities. The shares of Iberdrola, S.A. may not be offered or sold in the United States of America except pursuant to an effective registration statement under the Securities Act or pursuant to a valid exemption from registration.


    Slide51 l.jpg

    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 operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates” and similar expressions.

    Although Iberdrola, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Iberdrola, S.A. shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Iberdrola, S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the documents sent by Iberdrola, S.A. to the Comisión Nacional del Mercado de Valores, which are accessible to the public.

    Forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of Iberdrola, S.A. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to Iberdrola, S.A. or any of its members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included herein are based on information available to Iberdrola, S.A. on the date hereof. Except as required by applicable law, Iberdrola, S.A. does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


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