slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Roadshow Presentation Nine Months 2008 results PowerPoint Presentation
Download Presentation
Roadshow Presentation Nine Months 2008 results

Loading in 2 Seconds...

play fullscreen
1 / 51

Roadshow Presentation Nine Months 2008 results - PowerPoint PPT Presentation


  • 228 Views
  • Uploaded on

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.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Roadshow Presentation Nine Months 2008 results' - Solomon


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

A flexible value creation model

Anticipating market trends

RoadshowPresentation

Nine Months 2008 results

slide2

Agenda

Highlights of the Period

Analysis of Results

Financing

Conclusion

Annex: Results by Business

2

slide3

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

slide4

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

slide5

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

slide6

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

slide7

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

slide8

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

slide9

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

slide10

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

slide11

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

slide12

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

slide13

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

slide14

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

slide15

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

slide16

Agenda

Highlights of the Period

Analysis of Results

Financing

Conclusion

Annex: Results by Business

16

slide17

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

slide18

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

slide19

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

slide20

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

slide21

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

slide22

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

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

slide24

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

slide25

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

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

slide27

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

slide28

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

Agenda

Highlights of the Period

Analysis of Results

Financing

Conclusion

Annex: Results by Business

29

slide30

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

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

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

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

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

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.

slide36

Agenda

Highlights of the Period

Analysis of Results

Financing

Conclusion

Annex: Results by Business

36

slide37

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

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

Agenda

Highlights of the Period

Analysis of Results

Financing

Conclusion

Annex: Results by Business

39

slide40

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

slide41

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

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

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

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

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

slide46

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

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

slide48

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

slide49

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

slide50

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.

In addition, this document does not constitute an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, nor a request for any vote or approval in any other jurisdiction.

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

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.