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 regard, the company's Balance Sheet is focused on recovery, with record investments of more than €9.2 billion in the Fiscal Year 2020 and contracts awarded to more than 22,000 companies worth €14 billion, the most in its history, to support 400,000 jobs in our markets, which will rise to 500,000 by 2025.

In this decade, the company plans to make investments worth €150 billion to triple its renewable capacity and double its network assets, which will reach 95 GW and €60 billion, respectively. Progress on this long-term plan is moving faster than anticipated, with this progress including 75 % of the capacity planned for 2025 already under construction or guaranteed, an acceleration in the investments in Networks and strategic alliances formed to promote electrification, allowing the group to reaffirm its prospects for 2021 and subsequent years.

 Almost 19,000 green MW under construction or secured as part of a renewable portfolio amounting to 77,900 MW, after adding 25,000 MW in 2020

Iberdrola continues to strengthen the foundations of its future growth, increasing its portfolio of projects to 77.9 GW — after adding 25 GW in 2020 —, 18.7 GW is under construction or secured, covering 100 % of the planned capacity up until 2022 and 75 % to 2025. In Spain alone, the company has connection rights for 15,000 MW and land rights for an equivalent capacity.

A total of 8.7 GW are under construction: 4,600 MW wind (2,600 MW offshore and the rest onshore), 2,800 MW photovoltaic, 1,160 MW hydroelectric and 150 MW in storage batteries. By market, one third is being developed in the United States, one third in Spain and Brazil and the remaining third in European countries — such as Portugal, France and Germany — and Australia.

Furthermore, over the last 12 months, 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 significant expansion of the portfolio comprising this technology, with more than 25 GW as of today, located in new growth platforms with considerable potential, such as Japan, Poland, Sweden and Ireland, will allow the group to reach 12,000 MW in operation by 2030.

In 2020, offshore wind projects contributed €585 million to EBITDA, after growing by 72 %. This contribution will rise to €2.3 billion by 2030.

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

Another advance in 2020 was the value of regulated network assets which now totals 31.1 billions 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.

By the end of the decade the value of our regulated assets will have doubled to €60 billion, having reached €47 billion by 2025.

 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

Implementation of the 2020-2025 Plan is ahead of schedule, reaffirming the group's prospects of achieving a net profit of €3.7-3.8 billion by the close of the Fiscal Year 2021, rising to €5 billion by 2025 and around €7 billion by 2030.

In line with the results, shareholder remuneration will evolve: the company expects a dividend of 0.44 euros/share in 2021, rising to €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]