OUTLOOK 2020-2025
Iberdrola launches €75 billion investment plan to 2025 as a firm commitment to economic recovery
A total of 90 % of gross investment — 68 billion euros — will be organic. More than half (51 %) will be spent on renewable energies and 40 % on networks. Of this investment, 83 % has been earmarked for countries with climate ambitions and A ratings. These investments and efficiency (+1.5 billion euros) will drive the group's results to 2025 in EBITDA terms to 15 billion euros, while net benefit will stand at around 5 billion euros. The company's purchases, totalling more than 22,000 suppliers, will help to support up to 500,000 jobs in the world in 2025, as opposed to the current 400,000.
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OUTLOOK 2020-2025
Business Model and Strategic Pillars
Consolidating our successful business model
- Power decarbonisation
- Offshore Wind
- Solar FV
- Onshore Wind
- Pumped
- Battery Hydro Storage
- Networks system integration
- Automation
- Smart Grids
- HVDC
- DSO Model
- Demand electrification
- Transport
- Buildings
- Industry
- Heat Pumps
- Electric Vehicles
- More Renewable Energy
- More Networks
- More Storage
- More energy solutions for our Costumers
Building on the strategic pillars that have triggered 2 decades of sustained growth...
- ESG+F
- Acceleration of Profitable Growth
- Sustainable Dividend
- Financial Strength
- Geographical diversification: countries with high rating and ambitious climate policies
- Energy transition: enabling decarbonisation and electrification
- Efficiency: continuous drive for excellence
- Portfolio optimization: contributing to the environmental and financial sustainability of our business model
- Innovation: laying the foundations for the future
... to accelerate value creation for all stakeholders in the new scenario
2020-2025 Gross Investments: Eur 75 Bn
Eur 68 Bn of organic investments and Eur 7 Bn1 of PNM Resources transaction
- Annual Organic Investments (Eur Bn)
- Average 2017-2019: ~7
- Average 2020e-2022e: ~10
- Average 2023e-2025e: ~13
Growth represents 75 % of total organic investments (Eur 50 Bn)
1 Iberdrola estimates of PNM Resources transaction investment.
51 % of organic investments in renewables and ~85 % in Europe and the USA...
- Gross Organic Investments by Business (Eur 68 Bn)
- Liberalised: 9 %
- Renewables: 51 %
- Networks: 40 %
- Gross Organic Investments by Geography (Eur 68 Bn)
- Countries with credit rating greater than or equal to A2:
- IEI Europe and Australia: 16 %
- Spain: 21 %
- UK: 16 %
- USA: 34 %
- Mexico: 2 %
- Brazil: 11 %
- Countries with credit rating greater than or equal to A2:
...more than 83 % allocated to A-rated countries
2 Under Standard & Poor's categorization
2020-2025 Operating Figures:
Renewable Installed Capacity 2x (GW)
- 2019: (7)/32
- 2022e: (7)/44
- 2025e: (11)/~60
(x) GW under construction by year end
With more than 20 GW of capacity in other generation technologies
2020-2025 Efficiency: ~EUR 1.5 Bn
Achieving efficiencies of close to ~EUR 1.5 Bn in 2000-2025, of which EUR 1 Bn in 2023-2025...
NOE / Gross Margin (-200 bps)
- Average 2017-2019: ~27 %
- Average 2020e-2022e: ~26 %
- Average 2023e-2025e: ~25 %
...NOE / Gross Margin ratio constantly improving, to reach below 25 % by 2025
2025e EBITDA: ~ Eur 15 Bn
EBITDA grows ~Eur 5 Bn from 2019 (CAGR 6-7 %)...
EBITDA (Bn Eur) (CAGR 6-7 %)
- 2019: 10.1
- 2022e: >12
- 2025e: ~15
...increasing the share of renewables and geographic diversification...
- EBITDA 2025e by Business (~15 Eur Bn)
- Liberalised: 22 %
- Renewables: 31 %
- Networks: 47 %
- EBITDA 2025e by Currency (~15 Eur Bn)
- Countries with credit rating greater than or equal to A3:
- EUR: 40 %
- AUD: 1 %
- GBP: 17 %
- USD: 30 %
- BRL: 12 %
- Countries with credit rating greater than or equal to A3:
...with more than 80 % of EBITDA in A-rated countries
3 Under Standard & Poor's categorization.
2025e Net Profit: Eur ~5 Bn
Net Profit increase of ~Eur 1.5 Bn to reach Eur ~5 Bn in 2025 (6-7 % CAGR)...
Net Profit (Eur Bn) (CAGR 6-7 %) (~Eur 1.5 Bn)
- 2019: 3.5004
- 2022e: 4.000 - 4.200
- 2025e: ~5
...maintaining financial strength and solid rating
4 Net Profit 2019 restated for the recognition of the financial cost of the hybrid bond.
2020-2025 Shareholder remuneration
In a strong growth scenario, shareholder remuneration will grow in line with results
- Pay-out between 65 % and 75 % of EPS (our earning estimates would lead to a DPS in the range of approx. 0.53-0.56 in 2025)
- Increasing DPS floor:
- 2020-2022: 0.40 Eur/share
- 2023-2025: 0.44 Eur/share (+10 %)
- Maintaining optionality for shareholders with the "Iberdrola Retribución Flexible"
program, including share buy-back
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