PROGRESS ON 2020-2025 PLAN AND GROWTH UP TO 2030

Iberdrola is increasing its investment plan to €150 bn to triple renewable capacity and double network assets by 2030

Iberdrola group is making progress in its historic €75 billion investment plan for 2025, which it is now extending to €150 bn to 2030. This investment muscle will allow the company to achieve installed capacity of 60 GW by 2025 and 95 GW by 2030 — three times the current capacity — and a regulated asset base of €47 bn by 2025 and €60 bn by 2030 — doubling current figures. Similarly, the customer base is expected to rise to 70 million contracts by 2030, compared with 43.8 million now. These new investments will boost net profits to €5 bn by 2025 and around €7 bn by 2030.

PROGRESS ON THE 2020-2025 PLAN AND UNIQUE POSITION FOR GROWTH TO 2030

Iberdrola is uniquely positioned to continue to grow over the next decade. In this respect, the company's Balance Sheet is focused on recovery, with record investments of more than €9.2 bn and contracts awarded to more than 22,000 companies worth €14 bn, the most in its history, to support 400,000 jobs in our markets. In this decade, Iberdrola plans to make investments of €150 bn to triple its renewable capacity and double its network assets.

The company is moving ahead in its investment plan which it is now extending to 2030. This investment muscle will enable the company to achieve installed renewable capacity of 95 GW by the end of the decade — doubling the current capacity to 60 GW by 2025 — and a regulated asset base of €60 billion, which will be €47 billion by 2025.

 More than 17,000 green MW under construction as part of a renewable portfolio amounting to 74,400 MW, after adding 25,000 MW in 2020

In 2020, Iberdrola continued to strengthen the foundations for its future growth, increasing its portfolio of projects by 25 GW to 74.4 GW. The company now has 17.4 green GW under construction and development, of which 8.7 GW are new solar installations, 4.5 GW onshore wind, 2.6 GW offshore wind, 1.2 GW hydro-electric and 400 MW batteries.

During 2020, offshore wind was established as one of the group's growth vectors: it has 1.3 GW installed which will triple with the present construction of 2.6 GW, with no site costs. The current portfolio of this technology now totals 19 GW, of which 9 GW are ready for construction and 10 GW are planned for development in Sweden, Japan, Poland and Ireland. In 2020, offshore wind projects contributed €585 million to EBITDA, after growing by 72 %. This contribution will rise to €2.3 bn by 2030.

 More smart grids. The value of regulated assets is estimated at €47 bn for 2025

Another advance in 2020 has been the value of regulated network assets which now totals €31.1 bn and will continue to grow in 2021 to approximately €36 billion, with contributions from the latest operations at the integration phase: PNM Resources in the United States and the distributor CEB-D in Brazil.

 Increase in the customer base and Smart solutions

Growth in the coming years will also come from an increase in its customer base. In 2020, Iberdrola registered 43.8 million contracts, which it plans to increase to 48.5 million by the end of 2021. This number will grow to 60 million in 2025 and around 70 million in 2030. In this context, personalised smart solutions already contributed 4 % of net profit in 2020.

 Leading the development of green hydrogen

Another major growth vector will be green hydrogen. Iberdrola is already developing several projects that will enable the decarbonisation of industry and transport or heavy mobility in Spain and the UK and develop the value chain. The company has also submitted 53 projects to the Next Generation EU programme, which would trigger investments of €2.5 billion to reach an annual production of 60,000 tonnes/year.

 Doubling profits by 2030

These investments and the evolution of its businesses to 2030 would allow Iberdrola to reach a net profit of €5 billion by 2025 and €7 billion by 2030.

In line with the results, shareholder remuneration will evolve: the company expects a dividend of €0.56/share for 2025 and around €0.70/share in 2030. This dividend policy represents an increase in shareholder remuneration of 40 % in the period 2019-2025 and of approximately 90 % between 2019-2030.

Results Presentation 2020. [PDF]

Capital Markets Dat 2020. Documentation.

 

 Outlook 2020-2025 Infographic [PDF]