What is the "Iberdrola Retribución Flexible" system?

All the information about the optional dividend system

“Iberdrola Retribución Flexible” is Iberdrola’s optional dividend system that allows shareholders to choose how they wish to receive their remuneration among three options:

  • i. Receive new fully paid-up shares of “Iberdrola, S.A.”.

  • ii. Sell their free allocation rights on the market.

  • iii. Receive their remuneration in cash through the payment of a cash dividend.

This system is implemented through a capital increase charged to reserves and the payment of a cash dividend. All shareholders receive one free allocation right for each share they hold on the record date, and those wishing to receive the cash dividend must expressly waive these rights.

Shareholders may combine any of the options with respect to different groups of shares they hold. The value of the remuneration received by shareholders under options (i) and (iii) above will be equivalent, regardless of the chosen option, in terms of market value and without prejudice to tax treatment. If the shareholder does not communicate their choice within the common election period, the default option will be to receive newly issued fully paid-up shares.

In the second edition of the “Iberdrola Flexible Remuneration” optional dividend system for 2026, implemented in January 2027, shareholders who choose the cash dividend will receive a total interim dividend of €0.275 gross per share. This amount is aligned with the so-called “target dividend”, which is the gross target amount per share that the Company considers appropriate to distribute in this edition to comply with its Shareholder Remuneration Policy and promote long-term value creation.

Regardless of the option chosen by shareholders, if the amount of the interim dividend resulting from the calculation formulas approved by the Company is lower than the target dividend, the Company will pay all shareholders an adjustment dividend in cash for the difference, so that the total remuneration per share is aligned with the target dividend. On the contrary, if the interim dividend is equal to the target dividend, no adjustment dividend will be paid. The applicability of the adjustment dividend and, where applicable, its amount will be communicated to the market on 8 January 2027, through a supplement to the information document for this edition.
For further details, please refer to the calendar for this edition.

Practical examples

Below are practical examples of the three shareholder remuneration options available under the second edition of the “Iberdrola Retribución Flexible” optional dividend system for 2026, based on assumptions and figures used for illustrative purposes only.

Practical example
without Adjustment Dividend

Paid-up capital increase charged to reserves
1 share on the record date: 1 right

Amount of the Target Dividend:

€0.275 gross per share

  • A shareholder with 1,000 shares on the reference date will receive:

    1,000

    rights

  • Amount of the Interim Dividend*:

    €0.275

    gross per share

  • Number of rights required to receive one new share:

    77

    rights

* The Interim Dividend is equal to the Target Dividend; therefore, no Adjustment Dividend needs to be paid.

The shareholder has three
Flexible Remuneration Options:

  • Receive new Iberdrola shares
    no withholding tax
    The shareholder receives 12 new Iberdrola shares 1
  • Sell the free-of-charge allocation rights on the market
    with withholding tax
    The shareholder receives €222.75 net 2
  • Receive the Interim Dividend
    with withholding tax
    The shareholder receives €222.75 net 3

1 The allocation of new shares corresponding to the shareholder will be carried out free of charges and commissions. The entity where the shares are deposited may, in accordance with current legislation, set administration fees, as well as fees for processing buy and sell orders of free allocation rights.

2 Assumes the sale of rights on the market at €0.275. The amount obtained is subject to personal income tax (IRPF) withholding.

3 The Interim Dividend is subject to a 19% tax withholding.

Practical example
with Adjustment Dividend

Paid-up capital increase charged to reserves
1 share on the record date: 1 right

Target Dividend:

€0.275 gross per share

  • A shareholder with 1,000 shares on the record date will receive:

    1,000

    rights

  • Amount of the Interim Dividend*:

    €0.273

    gross per share

  • Number of rights required to receive one new share:

    78

    rights

Adjustment Dividend amount:

€0.002 gross per share

* The Interim Dividend is lower than the Target Dividend; therefore, the Adjustment Dividend applies.

The shareholder has three
Flexible Remuneration Options:

  • Receive new Iberdrola shares
    no withholding tax
    The shareholder receives 12 new Iberdrola shares 1
  • Sell the free-of-charge allocation rights on the market
    with withholding tax
    The shareholder receives €221.13 net 2
  • Receive the Interim Dividend
    with withholding tax
    The shareholder receives €221.13 net 3

Regardless of the option chosen, the shareholder will
also receive an Adjustment Dividend4
of €1.62 net.

1 The allocation of new shares corresponding to the shareholder will be carried out free of charges and commissions. The entity where the shares are deposited may, in accordance with current legislation, establish administrative fees, as well as fees for processing buy and sell orders of free allocation rights.

3 Assumes the sale of rights on the market at €0.273. The amount obtained is subject to personal income tax (IRPF) withholding.

2 The Interim Dividend is subject to a 19% withholding tax.

4 The Adjustment Dividend is subject to a 19% withholding tax.