"Iberdrola Retribución Flexible" frequently asked questions
1. What is the purpose of this system?
2. What remuneration options does the system offer?
3. If I wish to receive my remuneration in cash or sell my rights on the market, what should I do?
4. If I wish to receive new shares, what should I do?
5. Can I choose to receive part of my remuneration in cash and part in shares?
6. What happens if I do not notify my custodian entity of any option?
7. How many free allocation rights will I receive?
8. How many rights do I need to receive one new share?
9. Can I buy or sell free allocation rights?
10. What happens to rights that are not sufficient to receive one new share?
11. What is the target dividend?
12. What is the supplementary dividend?
13. What is the adjustment dividend?
14. What is the total supplementary dividend?
15. Who is entitled to receive the adjustment dividend?
16. Will I receive the adjustment dividend if I choose shares or sell my rights on the market?
17. What is the total gross remuneration amount?
18. Is the value of remuneration the same for all options?
19. What are the key dates and milestones of this edition?
20. Is there any cost to shareholders for receiving new shares?
1. What is the purpose of this system?
Through the optional dividend system “Iberdrola Flexible Remuneration”, the Company offers its shareholders the possibility to choose whether they wish to receive all or part of their remuneration in cash or in new shares of “Iberdrola, S.A.”, maintaining an equivalent remuneration value and without prejudice to the different tax treatment applicable to each alternative. Shareholders also have the option to monetize their free allocation rights by selling them on the market.
2. What remuneration options does the system offer?
Within the framework of this edition of the system, shareholders may choose any of the following alternatives:
- Receive newly issued fully paid-up shares of “Iberdrola, S.A.”
- Sell their free allocation rights on the market
- Receive their remuneration in cash by collecting the supplementary dividend corresponding to financial year 2025
Shareholders may also combine any of the above options with respect to different groups of shares they hold.
In addition, where applicable, the adjustment dividend will be paid to all shareholders of the Company on the record date, regardless of the remuneration option chosen.
3. If I wish to receive my remuneration in cash or sell my rights on the market, what should I do?
If you wish to receive your remuneration in cash, you must inform your custodian entity within the common election period (from July 6 to July 20, 2026, inclusive) of your decision to waive the corresponding free allocation rights and receive the supplementary dividend.
Alternatively, if you wish to sell your rights on the market, you must also notify your custodian entity.
4. If I wish to receive new shares, what should I do?
If you wish to receive newly issued fully paid-up shares of “Iberdrola, S.A.”, you must keep your free allocation rights until the end of the common election period.
This is the default option, so no communication to your custodian entity is required unless you choose a different alternative.
5. Can I choose to receive part of my remuneration in cash and part in shares?
Yes. Shareholders may combine the different remuneration options according to their preferences by informing their custodian entity within the common election period.
Choosing one option excludes the possibility of choosing either of the other two with respect to the free allocation rights to which that option applies.
6. What happens if I do not notify my custodian entity of any option?
In this case, the default option will apply, and the shareholder will receive newly issued fully paid-up shares based on the number of free allocation rights they hold and the number of rights required to receive one new share.
7. How many free allocation rights will I receive?
Each shareholder will receive one free allocation right for each Company share they hold on the record date, which in this edition will be July 7, 2026.
8. How many rights do I need to receive one new share?
The number of free allocation rights required to receive one new share will be determined and communicated by the Company before the start of the common election period.
9. Can I buy or sell free allocation rights?
Yes. During the trading period (from July 6 to July 20, 2026, inclusive), shareholders may buy and/or sell free allocation rights on the market in accordance with applicable regulations and the rules of the optional dividend system.
However, free allocation rights acquired on the market will not entitle their holders to receive the supplementary dividend or, where applicable, the adjustment dividend. Those who acquire rights on the market may only choose to receive newly issued fully paid-up shares or to sell those rights on the market.
10. What happens to rights that are not sufficient to receive one new share?
Rights that do not reach the number required to receive one new share may be sold on the market during the trading period.
Additionally, after this period ends, the custodian entity may sell rights that result in a fraction of a share, so that the holder receives the proceeds in cash. This possibility is subject to the terms and conditions of the custody agreement, so shareholders are advised to consult their custodian entity.
11. What is the target dividend?
The target dividend in this first edition of the “Iberdrola Flexible Remuneration” system for 2026 amounts to €0.427, which is the gross target amount per share that the Company considers appropriate to distribute in order to comply with its Shareholder Remuneration Policy and promote long-term value creation.
12. What is the supplementary dividend?
The supplementary dividend is the cash amount that will be received only by shareholders who choose to receive their remuneration in cash in this edition of the system.
13. What is the adjustment dividend?
The adjustment dividend is an additional cash payment which, where applicable, aims to adjust the total remuneration per share to ensure that the total supplementary dividend is aligned with the target dividend. Its applicability and amount will be announced on July 2, 2026.
14. What is the total supplementary dividend?
The total supplementary dividend is the sum of the supplementary dividend and, where applicable, the adjustment dividend. It must be equal to the target dividend (€0.427 gross per share in this edition).
15. Who is entitled to receive the adjustment dividend?
Where applicable, the adjustment dividend will be paid to all shareholders of the Company on the record date, regardless of the remuneration option chosen.
16. Will I receive the adjustment dividend if I choose shares or sell my rights on the market?
Yes. If paid, the adjustment dividend will also be paid to shareholders who choose to receive new shares or sell their rights on the market.
17. What is the total gross remuneration amount?
The total supplementary dividend for this edition amounts to €0.427 per share and is equal to the target dividend.
18. Is the value of remuneration the same for all options?
The value of the remuneration will be equivalent in market value terms for shareholders who choose either newly issued fully paid-up shares or the cash supplementary dividend, without prejudice to different tax treatments.
Please note that this value may differ if you choose to sell your free allocation rights on the market.
19. What are the key dates and milestones of this edition?
You can consult the main dates and milestones for this edition of the “Iberdrola Retribución Flexible” system in the calendar.
20. Is there any cost to shareholders for receiving new shares?
The capital increase will be carried out free of charge and commissions regarding the allocation of new shares, with the Company bearing the costs of issuance, subscription, distribution, and admission to trading.
However, shareholders should note that custodian entities may charge fees and expenses, in accordance with applicable law, for administration, processing of buy/sell orders of free allocation rights, and, where applicable, payment of the adjustment dividend.
