Shareholder payout Legal Notice Chairman’s key
Ignacio Galán / Chairman of Iberdrola
The good results in 2016 have allowed the Total Shareholder Returns 2014-2016 Disclaimer Board of Directors to propose to the Annual This document has been created by Iberdrola, S.A. in relation to presenting the results of 2016. Except for the financial information Shareholders’ Meeting that shareholder payout contained in this document (which has been taken from the annual accounts of Iberdrola, S.A. for the year ended 31 December go up by around 11% to 0.31 euros (gross) per 55% 2016, audited by Ernst & Young, S.L.), the information, opinions and statements made in this document have not been verified share. 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 and statements expressed herein. This amount is divided into two payments: last This document contains forward-looking information and statements about Iberdrola, S.A. These forward-looking statements January 0.135 euros (gross) per share were include certain financial projections and estimates and their underlying assumptions, statements in relation to the plans, targets paid as interim dividend; and on 31 March, the and expectations regarding future operations, investments, synergies, products and services, and statements regarding future Annual Shareholders’ Meeting should approve performance. These forward-looking statements do not constitute historical facts and can generally be identified by the use of terms a supplement of 0.175 euros (gross) per share. such as “expects”, “anticipates”, “believes”, “plans”, “estimates” and similar expressions. This will include 0.003 euros (gross) in cash and 18% Although Iberdrola, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and the rest through the programme 14% shareholders in Iberdrola, S.A. 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 “Scrip Dividend: Iberdrola Dividendo Flexible”. Iberdrola Eurostoxx50 Eurostoxx results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information utilities and statements. These risks and uncertainties include those discussed or identified in the public documents filed by Iberdrola, S.A. with the Comisión Nacional del Mercado de Valores (the Spanish securities regulator, or the CNMV for its initials in Spanish). The forward-looking statements refer solely to the date on which they were made public, do not constitute a guarantee of future results and have not been reviewed by the auditors of Iberdrola, S.A. You are cautioned not to place undue reliance on the forward- looking statements. All subsequent oral or written forward-looking statements attributable to Iberdrola, S.A. or any of its 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 or representations included herein are based on information available to Iberdrola, S.A. on the 2016 Interim shareholder remuneration 0.135€ gross/share1 date hereof. Except as required by applicable law, Iberdrola, S.A. does not undertake any obligation to publicly update or review Paid in January 2017 any forward-looking statements, even in the event of new information being published or new events occurring. Neither Iberdrola, S.A. nor its subsidiaries or other companies of the Iberdrola Group or companies in which Iberdrola, S.A. holds an interest shall 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 content. Neither this document nor any part of it constitutes a contract, nor may it be used for incorporation into or interpretation of any contract or other type of agreement. Eur 0.175€ gross/share: The information contained in this document on the price at which securities issued by Iberdrola, S.A. have been bought or sold Supplementary shareholder remuneration or on the performance of those securities cannot be used to predict the future performance of securities issued by Iberdrola, S.A. Eur 0.03€ gross/share in cash 2016 Subject to approval at AGM Scrip dividend: estimated to be at least Eur playable in July 2017 Important Information 0.145 gross/share This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the consolidated text The Company has registered net profit of over 2.7 billion euros, about 11.7% more than of the Spanish Securities Market Act (approved by Royal Legislative Decree 4/2015 of 23 October), Royal Decree-Law 5/2005 of the previous year. These results are boosted by the performance of the American subsidiary 1 Through the “Iberdrola Dividendo Flexible” program 11 March and/or Royal Decree 1310/2005 of 4 November, and the implementing regulations thereof. Moreover, this document AVANGRID and its 53% growth. does not constitute an offer of purchase, sale or exchange, or a request for an offer of purchase, sale or exchange of securities, or a request for any vote or approval in any other jurisdiction. Annual shareholder payout goes up by These results will enable us to propose around 11% increase (to at least 0.31 euros per share Also, as it has become common practice, the Company will pay a premium of 0.005 euros (gross) per share Iberdrola, S.A. shares may not be offered or sold in the United States of America, unless such an offer or sale is made pursuant to (gross)) in the annual payout against fiscal year 2016 at the next Annual Shareholders’ for attendance of the annual shareholders’ meeting. an effective registration statement under the Securities Act of 1933 or pursuant to a valid exemption from registration. almost 11% in 2016 This document and the information herein have been prepared by Iberdrola, S.A. solely relating to the consolidated financial Meeting. Additionally, to avoid the dilutive effect, the Board of Directors will present to the Annual Shareholders’ results of Iberdrola, S.A. They have been prepared and are presented in accordance with the International Financial Reporting As for the update to our 2016-2020 plan, we should stress the favourable financial conditions Meeting a proposal for a new share buyback scheme so that the total number of shares stays at 6.240 billion. Standards (IFRS). This document does not contain, and the information herein does not represent, an announcement, statement or publication in relation to the profit of Avangrid, Inc. (“Avangrid”) or its financial results. Neither Avangrid nor its subsidiaries and the existence of opportunities that have made it possible to expedite and increase our assume any liability for the information in this document, which has not been prepared or presented in accordance with the United investments, up to 25 billion in the entire period. States Generally Accepted Accounting Principles (U.S. GAAP). These principles differ from the IFRS in several significant aspects. Download the IBERDROLA Investor Relations app: Financial results under the IFRS are not an indication of financial results as per the U.S. GAAP and should not be considered an As a result, the annual net profit is expected to rise by around 7.5% to 3.5 billion euros for alternative or as the basis for predicting or estimating Avangrid’s financial results. For information on Avangrid’s financial results 2020. Also, in line with the results, the shareholder payout should increase to 0.37-0.40 in 2016, see its corporate website (www.avangrid. com
Available on Available on the Available on the Google App Store App Store Play (iPhone) Ignacio Galán (iPad) All information on Iberdrola is Tool-free line for shareholders / 900 100 019 available at www.iberdrola.com View Chairman Access a summary of the most important news about the company in our audiovisual magazine “Current the quarterly bulletins for shareholders Events” at www.iberdrola.com and the quarterly information about the Email / [email protected] Iberdrola Group by scanning the respective QR code with your smartphone or tablet. Web / www.iberdrola.com Nº 56 - February 2017 Shareholder payout Legal Notice Chairman’s key
Ignacio Galán / Chairman of Iberdrola
The good results in 2016 have allowed the Total Shareholder Returns 2014-2016 Disclaimer Board of Directors to propose to the Annual This document has been created by Iberdrola, S.A. in relation to presenting the results of 2016. Except for the financial information Shareholders’ Meeting that shareholder payout contained in this document (which has been taken from the annual accounts of Iberdrola, S.A. for the year ended 31 December go up by around 11% to 0.31 euros (gross) per 55% 2016, audited by Ernst & Young, S.L.), the information, opinions and statements made in this document have not been verified share. 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 and statements expressed herein. This amount is divided into two payments: last This document contains forward-looking information and statements about Iberdrola, S.A. These forward-looking statements January 0.135 euros (gross) per share were include certain financial projections and estimates and their underlying assumptions, statements in relation to the plans, targets paid as interim dividend; and on 31 March, the and expectations regarding future operations, investments, synergies, products and services, and statements regarding future Annual Shareholders’ Meeting should approve performance. These forward-looking statements do not constitute historical facts and can generally be identified by the use of terms a supplement of 0.175 euros (gross) per share. such as “expects”, “anticipates”, “believes”, “plans”, “estimates” and similar expressions. This will include 0.003 euros (gross) in cash and 18% Although Iberdrola, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and the rest through the programme 14% shareholders in Iberdrola, S.A. 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 “Scrip Dividend: Iberdrola Dividendo Flexible”. Iberdrola Eurostoxx50 Eurostoxx results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information utilities and statements. These risks and uncertainties include those discussed or identified in the public documents filed by Iberdrola, S.A. with the Comisión Nacional del Mercado de Valores (the Spanish securities regulator, or the CNMV for its initials in Spanish). The forward-looking statements refer solely to the date on which they were made public, do not constitute a guarantee of future results and have not been reviewed by the auditors of Iberdrola, S.A. You are cautioned not to place undue reliance on the forward- looking statements. All subsequent oral or written forward-looking statements attributable to Iberdrola, S.A. or any of its 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 or representations included herein are based on information available to Iberdrola, S.A. on the 2016 Interim shareholder remuneration 0.135€ gross/share1 date hereof. Except as required by applicable law, Iberdrola, S.A. does not undertake any obligation to publicly update or review Paid in January 2017 any forward-looking statements, even in the event of new information being published or new events occurring. Neither Iberdrola, S.A. nor its subsidiaries or other companies of the Iberdrola Group or companies in which Iberdrola, S.A. holds an interest shall 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 content. Neither this document nor any part of it constitutes a contract, nor may it be used for incorporation into or interpretation of any contract or other type of agreement. Eur 0.175€ gross/share: The information contained in this document on the price at which securities issued by Iberdrola, S.A. have been bought or sold Supplementary shareholder remuneration or on the performance of those securities cannot be used to predict the future performance of securities issued by Iberdrola, S.A. Eur 0.03€ gross/share in cash 2016 Subject to approval at AGM Scrip dividend: estimated to be at least Eur playable in July 2017 Important Information 0.145 gross/share This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the consolidated text The Company has registered net profit of over 2.7 billion euros, about 11.7% more than of the Spanish Securities Market Act (approved by Royal Legislative Decree 4/2015 of 23 October), Royal Decree-Law 5/2005 of the previous year. These results are boosted by the performance of the American subsidiary 1 Through the “Iberdrola Dividendo Flexible” program 11 March and/or Royal Decree 1310/2005 of 4 November, and the implementing regulations thereof. Moreover, this document AVANGRID and its 53% growth. does not constitute an offer of purchase, sale or exchange, or a request for an offer of purchase, sale or exchange of securities, or a request for any vote or approval in any other jurisdiction. Annual shareholder payout goes up by These results will enable us to propose around 11% increase (to at least 0.31 euros per share Also, as it has become common practice, the Company will pay a premium of 0.005 euros (gross) per share Iberdrola, S.A. shares may not be offered or sold in the United States of America, unless such an offer or sale is made pursuant to (gross)) in the annual payout against fiscal year 2016 at the next Annual Shareholders’ for attendance of the annual shareholders’ meeting. an effective registration statement under the Securities Act of 1933 or pursuant to a valid exemption from registration. almost 11% in 2016 This document and the information herein have been prepared by Iberdrola, S.A. solely relating to the consolidated financial Meeting. Additionally, to avoid the dilutive effect, the Board of Directors will present to the Annual Shareholders’ results of Iberdrola, S.A. They have been prepared and are presented in accordance with the International Financial Reporting As for the update to our 2016-2020 plan, we should stress the favourable financial conditions Meeting a proposal for a new share buyback scheme so that the total number of shares stays at 6.240 billion. Standards (IFRS). This document does not contain, and the information herein does not represent, an announcement, statement or publication in relation to the profit of Avangrid, Inc. (“Avangrid”) or its financial results. Neither Avangrid nor its subsidiaries and the existence of opportunities that have made it possible to expedite and increase our assume any liability for the information in this document, which has not been prepared or presented in accordance with the United investments, up to 25 billion in the entire period. States Generally Accepted Accounting Principles (U.S. GAAP). These principles differ from the IFRS in several significant aspects. Download the IBERDROLA Investor Relations app: Financial results under the IFRS are not an indication of financial results as per the U.S. GAAP and should not be considered an As a result, the annual net profit is expected to rise by around 7.5% to 3.5 billion euros for alternative or as the basis for predicting or estimating Avangrid’s financial results. For information on Avangrid’s financial results 2020. Also, in line with the results, the shareholder payout should increase to 0.37-0.40 in 2016, see its corporate website (www.avangrid. com
Available on Available on the Available on the Google App Store App Store Play (iPhone) Ignacio Galán (iPad) All information on Iberdrola is Tool-free line for shareholders / 900 100 019 available at www.iberdrola.com View Chairman Access a summary of the most important news about the company in our audiovisual magazine “Current the quarterly bulletins for shareholders Events” at www.iberdrola.com and the quarterly information about the Email / [email protected] Iberdrola Group by scanning the respective QR code with your smartphone or tablet. Web / www.iberdrola.com Nº 56 - February 2017 Shareholder payout Legal Notice Chairman’s key
Ignacio Galán / Chairman of Iberdrola
The good results in 2016 have allowed the Total Shareholder Returns 2014-2016 Disclaimer Board of Directors to propose to the Annual This document has been created by Iberdrola, S.A. in relation to presenting the results of 2016. Except for the financial information Shareholders’ Meeting that shareholder payout contained in this document (which has been taken from the annual accounts of Iberdrola, S.A. for the year ended 31 December go up by around 11% to 0.31 euros (gross) per 55% 2016, audited by Ernst & Young, S.L.), the information, opinions and statements made in this document have not been verified share. 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 and statements expressed herein. This amount is divided into two payments: last This document contains forward-looking information and statements about Iberdrola, S.A. These forward-looking statements January 0.135 euros (gross) per share were include certain financial projections and estimates and their underlying assumptions, statements in relation to the plans, targets paid as interim dividend; and on 31 March, the and expectations regarding future operations, investments, synergies, products and services, and statements regarding future Annual Shareholders’ Meeting should approve performance. These forward-looking statements do not constitute historical facts and can generally be identified by the use of terms a supplement of 0.175 euros (gross) per share. such as “expects”, “anticipates”, “believes”, “plans”, “estimates” and similar expressions. This will include 0.003 euros (gross) in cash and 18% Although Iberdrola, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and the rest through the programme 14% shareholders in Iberdrola, S.A. 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 “Scrip Dividend: Iberdrola Dividendo Flexible”. Iberdrola Eurostoxx50 Eurostoxx results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information utilities and statements. These risks and uncertainties include those discussed or identified in the public documents filed by Iberdrola, S.A. with the Comisión Nacional del Mercado de Valores (the Spanish securities regulator, or the CNMV for its initials in Spanish). The forward-looking statements refer solely to the date on which they were made public, do not constitute a guarantee of future results and have not been reviewed by the auditors of Iberdrola, S.A. You are cautioned not to place undue reliance on the forward- looking statements. All subsequent oral or written forward-looking statements attributable to Iberdrola, S.A. or any of its 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 or representations included herein are based on information available to Iberdrola, S.A. on the 2016 Interim shareholder remuneration 0.135€ gross/share1 date hereof. Except as required by applicable law, Iberdrola, S.A. does not undertake any obligation to publicly update or review Paid in January 2017 any forward-looking statements, even in the event of new information being published or new events occurring. Neither Iberdrola, S.A. nor its subsidiaries or other companies of the Iberdrola Group or companies in which Iberdrola, S.A. holds an interest shall 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 content. Neither this document nor any part of it constitutes a contract, nor may it be used for incorporation into or interpretation of any contract or other type of agreement. Eur 0.175€ gross/share: The information contained in this document on the price at which securities issued by Iberdrola, S.A. have been bought or sold Supplementary shareholder remuneration or on the performance of those securities cannot be used to predict the future performance of securities issued by Iberdrola, S.A. Eur 0.03€ gross/share in cash 2016 Subject to approval at AGM Scrip dividend: estimated to be at least Eur playable in July 2017 Important Information 0.145 gross/share This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the consolidated text The Company has registered net profit of over 2.7 billion euros, about 11.7% more than of the Spanish Securities Market Act (approved by Royal Legislative Decree 4/2015 of 23 October), Royal Decree-Law 5/2005 of the previous year. These results are boosted by the performance of the American subsidiary 1 Through the “Iberdrola Dividendo Flexible” program 11 March and/or Royal Decree 1310/2005 of 4 November, and the implementing regulations thereof. Moreover, this document AVANGRID and its 53% growth. does not constitute an offer of purchase, sale or exchange, or a request for an offer of purchase, sale or exchange of securities, or a request for any vote or approval in any other jurisdiction. Annual shareholder payout goes up by These results will enable us to propose around 11% increase (to at least 0.31 euros per share Also, as it has become common practice, the Company will pay a premium of 0.005 euros (gross) per share Iberdrola, S.A. shares may not be offered or sold in the United States of America, unless such an offer or sale is made pursuant to (gross)) in the annual payout against fiscal year 2016 at the next Annual Shareholders’ for attendance of the annual shareholders’ meeting. an effective registration statement under the Securities Act of 1933 or pursuant to a valid exemption from registration. almost 11% in 2016 This document and the information herein have been prepared by Iberdrola, S.A. solely relating to the consolidated financial Meeting. Additionally, to avoid the dilutive effect, the Board of Directors will present to the Annual Shareholders’ results of Iberdrola, S.A. They have been prepared and are presented in accordance with the International Financial Reporting As for the update to our 2016-2020 plan, we should stress the favourable financial conditions Meeting a proposal for a new share buyback scheme so that the total number of shares stays at 6.240 billion. Standards (IFRS). This document does not contain, and the information herein does not represent, an announcement, statement or publication in relation to the profit of Avangrid, Inc. (“Avangrid”) or its financial results. Neither Avangrid nor its subsidiaries and the existence of opportunities that have made it possible to expedite and increase our assume any liability for the information in this document, which has not been prepared or presented in accordance with the United investments, up to 25 billion in the entire period. States Generally Accepted Accounting Principles (U.S. GAAP). These principles differ from the IFRS in several significant aspects. Download the IBERDROLA Investor Relations app: Financial results under the IFRS are not an indication of financial results as per the U.S. GAAP and should not be considered an As a result, the annual net profit is expected to rise by around 7.5% to 3.5 billion euros for alternative or as the basis for predicting or estimating Avangrid’s financial results. For information on Avangrid’s financial results 2020. Also, in line with the results, the shareholder payout should increase to 0.37-0.40 in 2016, see its corporate website (www.avangrid. com
Available on Available on the Available on the Google App Store App Store Play (iPhone) Ignacio Galán (iPad) All information on Iberdrola is Tool-free line for shareholders / 900 100 019 available at www.iberdrola.com View Chairman Access a summary of the most important news about the company in our audiovisual magazine “Current the quarterly bulletins for shareholders Events” at www.iberdrola.com and the quarterly information about the Email / [email protected] Iberdrola Group by scanning the respective QR code with your smartphone or tablet. Web / www.iberdrola.com Nº 56 - February 2017 Highlights Highlights Update of Outlook for 2016-2020 IBERDROLA and the stock market
IBERDROLA share price performance vs. indices 5% The Gross Operating Profit (EBITDA) has EBITDA by business Net Investments Investments were up 32.3% to €4.26 billion to Iberdrola’s business model: the “energy company of the future” is Iberdrola as it is today Eur M amounted to €7.81 billion (+5.5%). continue growing Iberdrola worked in advance of this energy transaction 15 years ago by relying on a strategy focused on Liberalised developing renewable energies, pumped storage, more investments in smarter grids and innovative solutions 23% 4,264 In 2016, net investments have gone up by around 32.3% to 0% EBITDA climbed 5.5% to reach 7.81 billion euros. Gen & Supply for customers. For these reasons, we can say that the “energy company of the future” is Iberdrola as it is today. over 4.26 billion euros, mostly due to the identification of This figure was attained because of good results from Networks new opportunities for organic growth (especially renewables regulated activities in every region, which represent 58% 3,223 -5% Regulated 52% in the USA) and to regulated generation in Mexico, as well As for the 2016-2020 plan, the group is speeding of the total EBITDA, and in spite of the negative impact 6% Generation access to very favourable financial conditions. up investment through specific financial strength and of exchange rates. Investment by business growth projects: as such, it increased investment by +32.3 % Networks 1 billion euros (to 25 billion euros), which will be -10% Generation 19% earmarked primarily for renewables projects in the Renewables and Retail % 9% 42 United States. 2015 2016 In accordance with its own model that combines -15% Regulated 7% Eur 25Bn geographic diversification with an approach focused Net Operating Expenses Enhancing our operational efficiency Generation on energy transition, Iberdrola is to earmark 90% Eur M of investment for expanding and digitalising grids Boosting sustainable economic development -20% In 2016, Iberdrola has kept enhancing its operational (42%), for renewable energies (42%) and for regulated 3,739 42% efficiency with a reduction of 167 million euros in 1 generation (7%); areas that will contribute 81% of Iberdrola’s contribution to society is one of the highlights of 2016: the Company has kept its commitment Renewables Jul-16 net operational expenses, which has resulted in 5% to creating stable and quality employment and safety for its workers, in addition to its commitment to the Gross Operating Profit (EBITDA) by the end of 2020. Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Ago-16 Sep-16 Oct-16 Nov-16 Dec-16 improvement of the Net Operational Expenses/Gross environment. As a result, there has been a 31% decrease in emissions over the last five years and the Dow The currency distribution of the investments will be IBERDROLA -7.6% Eurostoxx50 -8.1% Eurostoxx Utilities -5.1% Ibex35 -8% 3,572 Margin ratio (from 29.1% in 2015 to 27.7% in 2016). Jones Sustainability index has acknowledged Iberdrola as the leading electricity utility in the world. 1 Including hydro dollars (48%), pounds (29%), euros (20%) and other Investments amounting to 211 million euros in innovation, clean energy, efficiency and better quality services currencies (3%), in mostly A-rated countries. -167 for our customers have earned Iberdrola the fourth place amongst electricity utilities in the world ranking. All of the above will allow Iberdrola to increase its IBERDROLA’s shares 12M 2016 12M 2015 Lastly, Iberdrola’s total direct tax contribution in the countries where it has presence was almost 5.8 billion average annual net profit growth outlook by around Number of shares outstanding 6,362,079,000 6,386,870,000 euros. This figure includes Iberdrola’s own taxes and taxes handled by the company that need to be paid to 7.5% to 3.5 billion euros. Price at end of period 6.234 6.550 2015 the tax authorities. 2016 Average share price in the period 6.008 6.120 Average daily volume 25,843,622 31,140,116 Financial Expenses Such performance enables us to envisage Financial expenses went down by 11.7% increased shareholder payout in line with DPS Eur Maximum volume (16-12-2016 / 26-06-2015) 117,034,016 90,216,773 Eur M In spite of increased average debt due to the consolidation earnings, in the range of 0.37-0.40 gross euros Minimum volume (16-05-2016 / 24-12-2015) 4,444,650 4,571,334 of UIL (now Avangrid), financial expenses went down 1,023.1 per share in 2020 and establishing a minimum 0.37 – 0.40 Dividends paid (€)(1) 0.286 0.276 2,638 new recruits by around 11.7% to 903.4 million euros. This was due of 0.31 gross euros per share over the period. 288,000 jobs generated worlwide1 Gross interim dividend (29/01/2016 - 19/12/2014) 0.127 0.127 to good debt management through derivatives and the 903.4 And maintaining the percentage of profit Training hours per employee: x3 European Average1 reduced average cost of debt. assigned to shareholder payout at 65%-75%. 20/30% Supplement gross (08-07 and 22-07-2016 / 03-07 and 22-07-2015) 0.154 0.144 -11.7% Employee safety: 58% reduction in incidence rate in the last five years Also, leveraging amounted to 42%. Also, the programme “Scrip Dividend: Iberdrola Attendance premium 0.005 0.005 Dividendo Flexible” will keep offering the (2) Floor Dividend yield 4.59% 4.21% World’s Nº1 utility in 2016 Dow Jones Sustainability Index opportunity to receive dividends in cash or 0.31 2015 2016 0.31 75% emission reduction since 20002 securities. 15% (1) Iberdrola-guaranteed rights purchase price (2) Dividends paid in last 12 months and attendance premium/share price at the close of the period. In order to avoid the dilution that this programme 0.27 1 4th worldwide utility by level of investment in R+D+I1 Investment in R+D+I: Eur 211 M may produce, Iberdrola will continue redeeming Stock market data 12M 2016 12M 2015 its own shares, keeping the number of securities Net Profit Net profit was €2.71 billion (+11.7%) 2014 2016 2020 Market Cap Million 39,661.2 40,810.8 Eur M Tax contribution3 of Eur 5,750M at a global level to 6.240 billion. Profit per share Reported Net Profit has gone up by around 11.7% to 1 According to PwC, based on Iberdrola’s activity in 2015, Jobs worldwide include indirect and induced impact E 0.43 0.41 2,705.0 2.71 billion euros with the improvement of Operating 2 In Europe (6,336,870,000 acc. a 31/12/2015 y 6,362,079,000 acc. a 31/12/2016) 3 Including company due taxes and collected taxes Income and the reduction of Financial Expenses and Net operating cash flow per share E 0.99 1.00 2,421.6 albeit greater taxation. P/E: Times 14.66 17.14 (capitalisation on NBV at end of period) +11.7% Price/Book value Times 0.97 1.17 For further information on share performance, please visit “Your Tools” on: www.iberdrola.es
2015 2016 Highlights Highlights Update of Outlook for 2016-2020 IBERDROLA and the stock market
IBERDROLA share price performance vs. indices 5% The Gross Operating Profit (EBITDA) has EBITDA by business Net Investments Investments were up 32.3% to €4.26 billion to Iberdrola’s business model: the “energy company of the future” is Iberdrola as it is today Eur M amounted to €7.81 billion (+5.5%). continue growing Iberdrola worked in advance of this energy transaction 15 years ago by relying on a strategy focused on Liberalised developing renewable energies, pumped storage, more investments in smarter grids and innovative solutions 23% 4,264 In 2016, net investments have gone up by around 32.3% to 0% EBITDA climbed 5.5% to reach 7.81 billion euros. Gen & Supply for customers. For these reasons, we can say that the “energy company of the future” is Iberdrola as it is today. over 4.26 billion euros, mostly due to the identification of This figure was attained because of good results from Networks new opportunities for organic growth (especially renewables regulated activities in every region, which represent 58% 3,223 -5% Regulated 52% in the USA) and to regulated generation in Mexico, as well As for the 2016-2020 plan, the group is speeding of the total EBITDA, and in spite of the negative impact 6% Generation access to very favourable financial conditions. up investment through specific financial strength and of exchange rates. Investment by business growth projects: as such, it increased investment by +32.3 % Networks 1 billion euros (to 25 billion euros), which will be -10% Generation 19% earmarked primarily for renewables projects in the Renewables and Retail % 9% 42 United States. 2015 2016 In accordance with its own model that combines -15% Regulated 7% Eur 25Bn geographic diversification with an approach focused Net Operating Expenses Enhancing our operational efficiency Generation on energy transition, Iberdrola is to earmark 90% Eur M of investment for expanding and digitalising grids Boosting sustainable economic development -20% In 2016, Iberdrola has kept enhancing its operational (42%), for renewable energies (42%) and for regulated 3,739 42% efficiency with a reduction of 167 million euros in 1 generation (7%); areas that will contribute 81% of Iberdrola’s contribution to society is one of the highlights of 2016: the Company has kept its commitment Renewables Jul-16 net operational expenses, which has resulted in 5% to creating stable and quality employment and safety for its workers, in addition to its commitment to the Gross Operating Profit (EBITDA) by the end of 2020. Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Ago-16 Sep-16 Oct-16 Nov-16 Dec-16 improvement of the Net Operational Expenses/Gross environment. As a result, there has been a 31% decrease in emissions over the last five years and the Dow The currency distribution of the investments will be IBERDROLA -7.6% Eurostoxx50 -8.1% Eurostoxx Utilities -5.1% Ibex35 -8% 3,572 Margin ratio (from 29.1% in 2015 to 27.7% in 2016). Jones Sustainability index has acknowledged Iberdrola as the leading electricity utility in the world. 1 Including hydro dollars (48%), pounds (29%), euros (20%) and other Investments amounting to 211 million euros in innovation, clean energy, efficiency and better quality services currencies (3%), in mostly A-rated countries. -167 for our customers have earned Iberdrola the fourth place amongst electricity utilities in the world ranking. All of the above will allow Iberdrola to increase its IBERDROLA’s shares 12M 2016 12M 2015 Lastly, Iberdrola’s total direct tax contribution in the countries where it has presence was almost 5.8 billion average annual net profit growth outlook by around Number of shares outstanding 6,362,079,000 6,386,870,000 euros. This figure includes Iberdrola’s own taxes and taxes handled by the company that need to be paid to 7.5% to 3.5 billion euros. Price at end of period 6.234 6.550 2015 the tax authorities. 2016 Average share price in the period 6.008 6.120 Average daily volume 25,843,622 31,140,116 Financial Expenses Such performance enables us to envisage Financial expenses went down by 11.7% increased shareholder payout in line with DPS Eur Maximum volume (16-12-2016 / 26-06-2015) 117,034,016 90,216,773 Eur M In spite of increased average debt due to the consolidation earnings, in the range of 0.37-0.40 gross euros Minimum volume (16-05-2016 / 24-12-2015) 4,444,650 4,571,334 of UIL (now Avangrid), financial expenses went down 1,023.1 per share in 2020 and establishing a minimum 0.37 – 0.40 Dividends paid (€)(1) 0.286 0.276 2,638 new recruits by around 11.7% to 903.4 million euros. This was due of 0.31 gross euros per share over the period. 288,000 jobs generated worlwide1 Gross interim dividend (29/01/2016 - 19/12/2014) 0.127 0.127 to good debt management through derivatives and the 903.4 And maintaining the percentage of profit Training hours per employee: x3 European Average1 reduced average cost of debt. assigned to shareholder payout at 65%-75%. 20/30% Supplement gross (08-07 and 22-07-2016 / 03-07 and 22-07-2015) 0.154 0.144 -11.7% Employee safety: 58% reduction in incidence rate in the last five years Also, leveraging amounted to 42%. Also, the programme “Scrip Dividend: Iberdrola Attendance premium 0.005 0.005 Dividendo Flexible” will keep offering the (2) Floor Dividend yield 4.59% 4.21% World’s Nº1 utility in 2016 Dow Jones Sustainability Index opportunity to receive dividends in cash or 0.31 2015 2016 0.31 75% emission reduction since 20002 securities. 15% (1) Iberdrola-guaranteed rights purchase price (2) Dividends paid in last 12 months and attendance premium/share price at the close of the period. In order to avoid the dilution that this programme 0.27 1 4th worldwide utility by level of investment in R+D+I1 Investment in R+D+I: Eur 211 M may produce, Iberdrola will continue redeeming Stock market data 12M 2016 12M 2015 its own shares, keeping the number of securities Net Profit Net profit was €2.71 billion (+11.7%) 2014 2016 2020 Market Cap Million 39,661.2 40,810.8 Eur M Tax contribution3 of Eur 5,750M at a global level to 6.240 billion. Profit per share Reported Net Profit has gone up by around 11.7% to 1 According to PwC, based on Iberdrola’s activity in 2015, Jobs worldwide include indirect and induced impact E 0.43 0.41 2,705.0 2.71 billion euros with the improvement of Operating 2 In Europe (6,336,870,000 acc. a 31/12/2015 y 6,362,079,000 acc. a 31/12/2016) 3 Including company due taxes and collected taxes Income and the reduction of Financial Expenses and Net operating cash flow per share E 0.99 1.00 2,421.6 albeit greater taxation. P/E: Times 14.66 17.14 (capitalisation on NBV at end of period) +11.7% Price/Book value Times 0.97 1.17 For further information on share performance, please visit “Your Tools” on: www.iberdrola.es
2015 2016 Highlights Highlights Update of Outlook for 2016-2020 IBERDROLA and the stock market
IBERDROLA share price performance vs. indices 5% The Gross Operating Profit (EBITDA) has EBITDA by business Net Investments Investments were up 32.3% to €4.26 billion to Iberdrola’s business model: the “energy company of the future” is Iberdrola as it is today Eur M amounted to €7.81 billion (+5.5%). continue growing Iberdrola worked in advance of this energy transaction 15 years ago by relying on a strategy focused on Liberalised developing renewable energies, pumped storage, more investments in smarter grids and innovative solutions 23% 4,264 In 2016, net investments have gone up by around 32.3% to 0% EBITDA climbed 5.5% to reach 7.81 billion euros. Gen & Supply for customers. For these reasons, we can say that the “energy company of the future” is Iberdrola as it is today. over 4.26 billion euros, mostly due to the identification of This figure was attained because of good results from Networks new opportunities for organic growth (especially renewables regulated activities in every region, which represent 58% 3,223 -5% Regulated 52% in the USA) and to regulated generation in Mexico, as well As for the 2016-2020 plan, the group is speeding of the total EBITDA, and in spite of the negative impact 6% Generation access to very favourable financial conditions. up investment through specific financial strength and of exchange rates. Investment by business growth projects: as such, it increased investment by +32.3 % Networks 1 billion euros (to 25 billion euros), which will be -10% Generation 19% earmarked primarily for renewables projects in the Renewables and Retail % 9% 42 United States. 2015 2016 In accordance with its own model that combines -15% Regulated 7% Eur 25Bn geographic diversification with an approach focused Net Operating Expenses Enhancing our operational efficiency Generation on energy transition, Iberdrola is to earmark 90% Eur M of investment for expanding and digitalising grids Boosting sustainable economic development -20% In 2016, Iberdrola has kept enhancing its operational (42%), for renewable energies (42%) and for regulated 3,739 42% efficiency with a reduction of 167 million euros in 1 generation (7%); areas that will contribute 81% of Iberdrola’s contribution to society is one of the highlights of 2016: the Company has kept its commitment Renewables Jul-16 net operational expenses, which has resulted in 5% to creating stable and quality employment and safety for its workers, in addition to its commitment to the Gross Operating Profit (EBITDA) by the end of 2020. Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Ago-16 Sep-16 Oct-16 Nov-16 Dec-16 improvement of the Net Operational Expenses/Gross environment. As a result, there has been a 31% decrease in emissions over the last five years and the Dow The currency distribution of the investments will be IBERDROLA -7.6% Eurostoxx50 -8.1% Eurostoxx Utilities -5.1% Ibex35 -8% 3,572 Margin ratio (from 29.1% in 2015 to 27.7% in 2016). Jones Sustainability index has acknowledged Iberdrola as the leading electricity utility in the world. 1 Including hydro dollars (48%), pounds (29%), euros (20%) and other Investments amounting to 211 million euros in innovation, clean energy, efficiency and better quality services currencies (3%), in mostly A-rated countries. -167 for our customers have earned Iberdrola the fourth place amongst electricity utilities in the world ranking. All of the above will allow Iberdrola to increase its IBERDROLA’s shares 12M 2016 12M 2015 Lastly, Iberdrola’s total direct tax contribution in the countries where it has presence was almost 5.8 billion average annual net profit growth outlook by around Number of shares outstanding 6,362,079,000 6,386,870,000 euros. This figure includes Iberdrola’s own taxes and taxes handled by the company that need to be paid to 7.5% to 3.5 billion euros. Price at end of period 6.234 6.550 2015 the tax authorities. 2016 Average share price in the period 6.008 6.120 Average daily volume 25,843,622 31,140,116 Financial Expenses Such performance enables us to envisage Financial expenses went down by 11.7% increased shareholder payout in line with DPS Eur Maximum volume (16-12-2016 / 26-06-2015) 117,034,016 90,216,773 Eur M In spite of increased average debt due to the consolidation earnings, in the range of 0.37-0.40 gross euros Minimum volume (16-05-2016 / 24-12-2015) 4,444,650 4,571,334 of UIL (now Avangrid), financial expenses went down 1,023.1 per share in 2020 and establishing a minimum 0.37 – 0.40 Dividends paid (€)(1) 0.286 0.276 2,638 new recruits by around 11.7% to 903.4 million euros. This was due of 0.31 gross euros per share over the period. 288,000 jobs generated worlwide1 Gross interim dividend (29/01/2016 - 19/12/2014) 0.127 0.127 to good debt management through derivatives and the 903.4 And maintaining the percentage of profit Training hours per employee: x3 European Average1 reduced average cost of debt. assigned to shareholder payout at 65%-75%. 20/30% Supplement gross (08-07 and 22-07-2016 / 03-07 and 22-07-2015) 0.154 0.144 -11.7% Employee safety: 58% reduction in incidence rate in the last five years Also, leveraging amounted to 42%. Also, the programme “Scrip Dividend: Iberdrola Attendance premium 0.005 0.005 Dividendo Flexible” will keep offering the (2) Floor Dividend yield 4.59% 4.21% World’s Nº1 utility in 2016 Dow Jones Sustainability Index opportunity to receive dividends in cash or 0.31 2015 2016 0.31 75% emission reduction since 20002 securities. 15% (1) Iberdrola-guaranteed rights purchase price (2) Dividends paid in last 12 months and attendance premium/share price at the close of the period. In order to avoid the dilution that this programme 0.27 1 4th worldwide utility by level of investment in R+D+I1 Investment in R+D+I: Eur 211 M may produce, Iberdrola will continue redeeming Stock market data 12M 2016 12M 2015 its own shares, keeping the number of securities Net Profit Net profit was €2.71 billion (+11.7%) 2014 2016 2020 Market Cap Million 39,661.2 40,810.8 Eur M Tax contribution3 of Eur 5,750M at a global level to 6.240 billion. Profit per share Reported Net Profit has gone up by around 11.7% to 1 According to PwC, based on Iberdrola’s activity in 2015, Jobs worldwide include indirect and induced impact E 0.43 0.41 2,705.0 2.71 billion euros with the improvement of Operating 2 In Europe (6,336,870,000 acc. a 31/12/2015 y 6,362,079,000 acc. a 31/12/2016) 3 Including company due taxes and collected taxes Income and the reduction of Financial Expenses and Net operating cash flow per share E 0.99 1.00 2,421.6 albeit greater taxation. P/E: Times 14.66 17.14 (capitalisation on NBV at end of period) +11.7% Price/Book value Times 0.97 1.17 For further information on share performance, please visit “Your Tools” on: www.iberdrola.es
2015 2016 Highlights Highlights Update of Outlook for 2016-2020 IBERDROLA and the stock market
IBERDROLA share price performance vs. indices 5% The Gross Operating Profit (EBITDA) has EBITDA by business Net Investments Investments were up 32.3% to €4.26 billion to Iberdrola’s business model: the “energy company of the future” is Iberdrola as it is today Eur M amounted to €7.81 billion (+5.5%). continue growing Iberdrola worked in advance of this energy transaction 15 years ago by relying on a strategy focused on Liberalised developing renewable energies, pumped storage, more investments in smarter grids and innovative solutions 23% 4,264 In 2016, net investments have gone up by around 32.3% to 0% EBITDA climbed 5.5% to reach 7.81 billion euros. Gen & Supply for customers. For these reasons, we can say that the “energy company of the future” is Iberdrola as it is today. over 4.26 billion euros, mostly due to the identification of This figure was attained because of good results from Networks new opportunities for organic growth (especially renewables regulated activities in every region, which represent 58% 3,223 -5% Regulated 52% in the USA) and to regulated generation in Mexico, as well As for the 2016-2020 plan, the group is speeding of the total EBITDA, and in spite of the negative impact 6% Generation access to very favourable financial conditions. up investment through specific financial strength and of exchange rates. Investment by business growth projects: as such, it increased investment by +32.3 % Networks 1 billion euros (to 25 billion euros), which will be -10% Generation 19% earmarked primarily for renewables projects in the Renewables and Retail % 9% 42 United States. 2015 2016 In accordance with its own model that combines -15% Regulated 7% Eur 25Bn geographic diversification with an approach focused Net Operating Expenses Enhancing our operational efficiency Generation on energy transition, Iberdrola is to earmark 90% Eur M of investment for expanding and digitalising grids Boosting sustainable economic development -20% In 2016, Iberdrola has kept enhancing its operational (42%), for renewable energies (42%) and for regulated 3,739 42% efficiency with a reduction of 167 million euros in 1 generation (7%); areas that will contribute 81% of Iberdrola’s contribution to society is one of the highlights of 2016: the Company has kept its commitment Renewables Jul-16 net operational expenses, which has resulted in 5% to creating stable and quality employment and safety for its workers, in addition to its commitment to the Gross Operating Profit (EBITDA) by the end of 2020. Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Ago-16 Sep-16 Oct-16 Nov-16 Dec-16 improvement of the Net Operational Expenses/Gross environment. As a result, there has been a 31% decrease in emissions over the last five years and the Dow The currency distribution of the investments will be IBERDROLA -7.6% Eurostoxx50 -8.1% Eurostoxx Utilities -5.1% Ibex35 -8% 3,572 Margin ratio (from 29.1% in 2015 to 27.7% in 2016). Jones Sustainability index has acknowledged Iberdrola as the leading electricity utility in the world. 1 Including hydro dollars (48%), pounds (29%), euros (20%) and other Investments amounting to 211 million euros in innovation, clean energy, efficiency and better quality services currencies (3%), in mostly A-rated countries. -167 for our customers have earned Iberdrola the fourth place amongst electricity utilities in the world ranking. All of the above will allow Iberdrola to increase its IBERDROLA’s shares 12M 2016 12M 2015 Lastly, Iberdrola’s total direct tax contribution in the countries where it has presence was almost 5.8 billion average annual net profit growth outlook by around Number of shares outstanding 6,362,079,000 6,386,870,000 euros. This figure includes Iberdrola’s own taxes and taxes handled by the company that need to be paid to 7.5% to 3.5 billion euros. Price at end of period 6.234 6.550 2015 the tax authorities. 2016 Average share price in the period 6.008 6.120 Average daily volume 25,843,622 31,140,116 Financial Expenses Such performance enables us to envisage Financial expenses went down by 11.7% increased shareholder payout in line with DPS Eur Maximum volume (16-12-2016 / 26-06-2015) 117,034,016 90,216,773 Eur M In spite of increased average debt due to the consolidation earnings, in the range of 0.37-0.40 gross euros Minimum volume (16-05-2016 / 24-12-2015) 4,444,650 4,571,334 of UIL (now Avangrid), financial expenses went down 1,023.1 per share in 2020 and establishing a minimum 0.37 – 0.40 Dividends paid (€)(1) 0.286 0.276 2,638 new recruits by around 11.7% to 903.4 million euros. This was due of 0.31 gross euros per share over the period. 288,000 jobs generated worlwide1 Gross interim dividend (29/01/2016 - 19/12/2014) 0.127 0.127 to good debt management through derivatives and the 903.4 And maintaining the percentage of profit Training hours per employee: x3 European Average1 reduced average cost of debt. assigned to shareholder payout at 65%-75%. 20/30% Supplement gross (08-07 and 22-07-2016 / 03-07 and 22-07-2015) 0.154 0.144 -11.7% Employee safety: 58% reduction in incidence rate in the last five years Also, leveraging amounted to 42%. Also, the programme “Scrip Dividend: Iberdrola Attendance premium 0.005 0.005 Dividendo Flexible” will keep offering the (2) Floor Dividend yield 4.59% 4.21% World’s Nº1 utility in 2016 Dow Jones Sustainability Index opportunity to receive dividends in cash or 0.31 2015 2016 0.31 75% emission reduction since 20002 securities. 15% (1) Iberdrola-guaranteed rights purchase price (2) Dividends paid in last 12 months and attendance premium/share price at the close of the period. In order to avoid the dilution that this programme 0.27 1 4th worldwide utility by level of investment in R+D+I1 Investment in R+D+I: Eur 211 M may produce, Iberdrola will continue redeeming Stock market data 12M 2016 12M 2015 its own shares, keeping the number of securities Net Profit Net profit was €2.71 billion (+11.7%) 2014 2016 2020 Market Cap Million 39,661.2 40,810.8 Eur M Tax contribution3 of Eur 5,750M at a global level to 6.240 billion. Profit per share Reported Net Profit has gone up by around 11.7% to 1 According to PwC, based on Iberdrola’s activity in 2015, Jobs worldwide include indirect and induced impact E 0.43 0.41 2,705.0 2.71 billion euros with the improvement of Operating 2 In Europe (6,336,870,000 acc. a 31/12/2015 y 6,362,079,000 acc. a 31/12/2016) 3 Including company due taxes and collected taxes Income and the reduction of Financial Expenses and Net operating cash flow per share E 0.99 1.00 2,421.6 albeit greater taxation. P/E: Times 14.66 17.14 (capitalisation on NBV at end of period) +11.7% Price/Book value Times 0.97 1.17 For further information on share performance, please visit “Your Tools” on: www.iberdrola.es
2015 2016 Shareholder payout Legal Notice Chairman’s key
Ignacio Galán / Chairman of Iberdrola
The good results in 2016 have allowed the Total Shareholder Returns 2014-2016 Disclaimer Board of Directors to propose to the Annual This document has been created by Iberdrola, S.A. in relation to presenting the results of 2016. Except for the financial information Shareholders’ Meeting that shareholder payout contained in this document (which has been taken from the annual accounts of Iberdrola, S.A. for the year ended 31 December go up by around 11% to 0.31 euros (gross) per 55% 2016, audited by Ernst & Young, S.L.), the information, opinions and statements made in this document have not been verified share. 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 and statements expressed herein. This amount is divided into two payments: last This document contains forward-looking information and statements about Iberdrola, S.A. These forward-looking statements January 0.135 euros (gross) per share were include certain financial projections and estimates and their underlying assumptions, statements in relation to the plans, targets paid as interim dividend; and on 31 March, the and expectations regarding future operations, investments, synergies, products and services, and statements regarding future Annual Shareholders’ Meeting should approve performance. These forward-looking statements do not constitute historical facts and can generally be identified by the use of terms a supplement of 0.175 euros (gross) per share. such as “expects”, “anticipates”, “believes”, “plans”, “estimates” and similar expressions. This will include 0.003 euros (gross) in cash and 18% Although Iberdrola, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and the rest through the programme 14% shareholders in Iberdrola, S.A. 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 “Scrip Dividend: Iberdrola Dividendo Flexible”. Iberdrola Eurostoxx50 Eurostoxx results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information utilities and statements. These risks and uncertainties include those discussed or identified in the public documents filed by Iberdrola, S.A. with the Comisión Nacional del Mercado de Valores (the Spanish securities regulator, or the CNMV for its initials in Spanish). The forward-looking statements refer solely to the date on which they were made public, do not constitute a guarantee of future results and have not been reviewed by the auditors of Iberdrola, S.A. You are cautioned not to place undue reliance on the forward- looking statements. All subsequent oral or written forward-looking statements attributable to Iberdrola, S.A. or any of its 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 or representations included herein are based on information available to Iberdrola, S.A. on the 2016 Interim shareholder remuneration 0.135€ gross/share1 date hereof. Except as required by applicable law, Iberdrola, S.A. does not undertake any obligation to publicly update or review Paid in January 2017 any forward-looking statements, even in the event of new information being published or new events occurring. Neither Iberdrola, S.A. nor its subsidiaries or other companies of the Iberdrola Group or companies in which Iberdrola, S.A. holds an interest shall 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 content. Neither this document nor any part of it constitutes a contract, nor may it be used for incorporation into or interpretation of any contract or other type of agreement. Eur 0.175€ gross/share: The information contained in this document on the price at which securities issued by Iberdrola, S.A. have been bought or sold Supplementary shareholder remuneration or on the performance of those securities cannot be used to predict the future performance of securities issued by Iberdrola, S.A. Eur 0.03€ gross/share in cash 2016 Subject to approval at AGM Scrip dividend: estimated to be at least Eur playable in July 2017 Important Information 0.145 gross/share This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the consolidated text The Company has registered net profit of over 2.7 billion euros, about 11.7% more than of the Spanish Securities Market Act (approved by Royal Legislative Decree 4/2015 of 23 October), Royal Decree-Law 5/2005 of the previous year. These results are boosted by the performance of the American subsidiary 1 Through the “Iberdrola Dividendo Flexible” program 11 March and/or Royal Decree 1310/2005 of 4 November, and the implementing regulations thereof. Moreover, this document AVANGRID and its 53% growth. does not constitute an offer of purchase, sale or exchange, or a request for an offer of purchase, sale or exchange of securities, or a request for any vote or approval in any other jurisdiction. Annual shareholder payout goes up by These results will enable us to propose around 11% increase (to at least 0.31 euros per share Also, as it has become common practice, the Company will pay a premium of 0.005 euros (gross) per share Iberdrola, S.A. shares may not be offered or sold in the United States of America, unless such an offer or sale is made pursuant to (gross)) in the annual payout against fiscal year 2016 at the next Annual Shareholders’ for attendance of the annual shareholders’ meeting. an effective registration statement under the Securities Act of 1933 or pursuant to a valid exemption from registration. almost 11% in 2016 This document and the information herein have been prepared by Iberdrola, S.A. solely relating to the consolidated financial Meeting. Additionally, to avoid the dilutive effect, the Board of Directors will present to the Annual Shareholders’ results of Iberdrola, S.A. They have been prepared and are presented in accordance with the International Financial Reporting As for the update to our 2016-2020 plan, we should stress the favourable financial conditions Meeting a proposal for a new share buyback scheme so that the total number of shares stays at 6.240 billion. Standards (IFRS). This document does not contain, and the information herein does not represent, an announcement, statement or publication in relation to the profit of Avangrid, Inc. (“Avangrid”) or its financial results. Neither Avangrid nor its subsidiaries and the existence of opportunities that have made it possible to expedite and increase our assume any liability for the information in this document, which has not been prepared or presented in accordance with the United investments, up to 25 billion in the entire period. States Generally Accepted Accounting Principles (U.S. GAAP). These principles differ from the IFRS in several significant aspects. Download the IBERDROLA Investor Relations app: Financial results under the IFRS are not an indication of financial results as per the U.S. GAAP and should not be considered an As a result, the annual net profit is expected to rise by around 7.5% to 3.5 billion euros for alternative or as the basis for predicting or estimating Avangrid’s financial results. For information on Avangrid’s financial results 2020. Also, in line with the results, the shareholder payout should increase to 0.37-0.40 in 2016, see its corporate website (www.avangrid. com
Available on Available on the Available on the Google App Store App Store Play (iPhone) Ignacio Galán (iPad) All information on Iberdrola is Tool-free line for shareholders / 900 100 019 available at www.iberdrola.com View Chairman Access a summary of the most important news about the company in our audiovisual magazine “Current the quarterly bulletins for shareholders Events” at www.iberdrola.com and the quarterly information about the Email / [email protected] Iberdrola Group by scanning the respective QR code with your smartphone or tablet. Web / www.iberdrola.com Nº 56 - February 2017