Results 2018 February 20 / 2019
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Results Download the IBERDROLA Investor Relations app: 2018 February 20 2019 Available on Available on the Available on the Google Play www.iberdrola.com Iberdrola, “utility of the IBERDROLA, S.A. Investor relations Phone: 00 34 91 784 2804 future” Fax: 00 34 91 784 2064 [email protected] Results Download the IBERDROLA Investor Relations app: 2018 February 20 2019 Available on Available on the Available on the Google Play www.iberdrola.com Iberdrola, “utility of the IBERDROLA, S.A. Investor relations Phone: 00 34 91 784 2804 future” Fax: 00 34 91 784 2064 [email protected] Results Download the IBERDROLA Investor Relations app: 2018 February 20 2019 Available on Available on the Available on the Google Play www.iberdrola.com Iberdrola, “utility of the IBERDROLA, S.A. Investor relations Phone: 00 34 91 784 2804 future” Fax: 00 34 91 784 2064 [email protected] Legal Notice Disclaimer Royal Decree 1310/2005, of 4 November; (iv) and their im- plementing regulations. This document has been prepared by Iberdrola, S.A. exclu- In addition, this document does not constitute an offer sively for use during the presentation of financial results of purchase, sale or exchange, nor a request for an offer of the 2018 fiscal year. As a consequence thereof, this do- of purchase, sale or exchange of securities, nor a request cument may not be disclosed or published, nor used by for any vote or approval in any other jurisdiction. any other person or entity, for any other reason without The shares of Iberdrola, S.A. may not be offered or sold the express and prior written consent of Iberdrola, S.A. in the United States of America except pursuant to an Iberdrola, S.A. does not assume liability for this docu- effective registration statement under the Securities Act ment if it is used with a purpose other than the above. of 1933 or pursuant to a valid exemption from registra- Except for the financial information included in this tion. The shares of Iberdrola, S.A. may not be offered or document (which has been extracted from the annual fi- sold in Brazil except under the registration of Iberdrola, nancial statements of Iberdrola, S.A. corresponding to the S.A. as a foreign issuer of listed securities, and a registra- fiscal year ended on 31 December 2018, as audited by tion of a public offering of depositary receipts of its sha- KPMG Auditores, S.L.), the information and any opinions or statements made in this document have not been veri- res, pursuant to the Capital Markets Act of 1976 (Federal fied by independent third parties; therefore, no express or Law No. 6,385 of December 7, 1976, as further amended), implied warranty is made as to the impartiality, accura- or pursuant to a valid exemption from registration of the cy, completeness or correctness of the information or the offering. opinions or statements expressed herein. This document and the information presented herein Neither Iberdrola, S.A. nor its subsidiaries or other com- was prepared by Iberdrola, S.A. solely with respect to panies of the Iberdrola Group or its affiliates assume the consolidated financial results of Iberdrola, S.A. and liability of any kind, whether for negligence or any other was prepared and is presented in accordance with the reason, for any damage or loss arising from any use of International Financial Reporting Standards (“IFRS”). this document or its contents. This document does not contain, and the information Neither this document nor any part of it constitutes presented herein does not constitute, an earnings release a contract, nor may it be used for incorporation into or or statement of earnings of Avangrid, Inc. (“Avangrid”) or construction of any contract or agreement. Avangrid’s financial results. Neither Avangrid nor its subsi- Information in this document about the price at which diaries assume responsibility for the information presen- securities issued by Iberdrola, S.A. have been bought or ted herein, which was not prepared and is not presented sold in the past or about the yield on securities issued by in accordance with United States Generally Accepted Iberdrola, S.A. cannot be relied upon as a guide to future Accounting Principles (“U.S. GAAP”), which differs from performance. IFRS in a number of significant respects. IFRS financial results are not indicative of U.S. GAAP financial results Important information and should not be used as an alternative to, or a basis for This document does not constitute an offer or invitation anticipating or estimating, Avangrid’s financial results. to purchase or subscribe shares, in accordance with the For information regarding Avangrid’s financial results for provisions of (i) the restated text of the Securities Market the 2018 fiscal year, please see the press release Avan- Law approved by Royal Legislative Decree 4/2015, of 23 grid issued on 20 February, 2019, which is available on its October; (ii) Royal Decree-Law 5/2005, of 11 March; (iii) investor relations website at www.avangrid.com and the Twelve months / Results 2018 www.iberdrola.com / Legal Notice / 3 Securities and Exchange Commission (“SEC”) website at Forward-looking statements www.sec.gov. This communication contains forward-looking informa- In addition to the financial information prepared under tion and statements about Iberdrola, S.A., including fi- IFRS, this presentation includes certain alternative per- nancial projections and estimates and their underlying formance measures (“APMs”), as defined in the Guideli- assumptions, statements regarding plans, objectives and nes on Alternative Performance Measures issued by the expectations with respect to future operations, capital European Securities and Markets Authority on 5 October expenditures, synergies, products and services, and sta- 2015 (ESMA/2015/1415es). The APMs are performance tements regarding future performance. Forward-looking measures that have been calculated using the finan- statements are statements that are not historical fac cial information from Iberdrola, S.A. and the companies Although Iberdrola, S.A. believes that the expectations re- within its group, but that are not defined or detailed in flected in such forward-looking statements are reasonable, the applicable financial information framework. These investors and holders of Iberdrola, S.A. shares are cautio- APMs are being used to allow for a better understanding ned that forward-looking information and statements are of the financial performance of Iberdrola, S.A. but should subject to various risks and uncertainties, many of which be considered only as additional information and in no are difficult to predict and generally beyond the control case as a substitute of the financial information prepared of Iberdrola, S.A., that could cause actual results and de- under IFRS. Moreover, the way Iberdrola, S.A. defines and velopments to differ materially from those expressed in, or calculates these APMs may differ from the way these are implied or projected by, the forward-looking information calculated by other companies that use similar measures, and statements. These risks and uncertainties include tho- and therefore they may not be comparable. Finally, plea- se discussed or identified in the documents sent by Iber- se consider that certain of the APMs used in this presen- drola, S.A. to the Spanish Comisión Nacional del Mercado tation have not been audited. Please refer to this presen- de Valores, which are accessible to the public. tation and to the corporate website (www.iberdrola.com) Forward-looking statements are not guarantees of futu- for further details of these matters, including their defini- re performance. They have not been reviewed by the audi- tion or a reconciliation between any applicable manage- tors of Iberdrola, S.A. You are cautioned not to place undue ment indicators and the financial data presented in the reliance on the forward-looking statements, which speak consolidated financial statements prepared under IFRS. only as of the date they were made. All subsequent oral This document does not contain, and the information or written forward-looking statements attributable to Iber- presented herein does not constitute, an earnings release drola, S.A. or any of its members, directors, officers, emplo- or statement of earnings of Neoenergia S.A. (“Neoenergia”) yees or any persons acting on its behalf are expressly qua- or Neoenergia’s financial results. Neither Neoenergia nor lified in their entirety by the cautionary statement above. its subsidiaries assume responsibility for the information All forward-looking statements included herein are based presented herein. For information regarding Neoenergia’s on information available to Iberdrola, S.A. on the date he- financial results for the 2018 fiscal year, please see the reof. Except as required by applicable law, Iberdrola, S.A. press release Neoenergia issued on 14 February, 2019, does not undertake any obligation to publicly update or which is available on its investor relations website at revise any forward-looking statements, whether as a result www.ri.neoenergia.com and the Brazilian Comissão de of new information, future events or otherwise. Valores Mobiliários (“CVM”) website at www.cvm.gov.br. / www.iberdrola.com Results 2018 / Twelve months Index Index / 5 1. Core business figures 6 2. Highlights for the period 14 3. Operational performance for the period 18 4. Analysis of the consolidated profit and loss account 32 5. Results by business 36 6. Balance Sheet Analysis 44 7. Financial Statements Tables 54 Balance Sheet 55 Profit and Loss 57 Results by Business 58 Networks Business 59 Renewables Business 60 Generation and Supply Business 61 Quarterly Results 2018 62 Statement of Origin and Use of Funds 63 8. Stock Market Evolution 64 9. Regulation 66 10. Iberdrola and Sustainability 72 11. Glossary of terms 94 / www.iberdrola.com Results 2018 / Twelve months 6 / Core business figures 1.