What is the "Iberdrola Retribución Flexible" system?

All the information about the "Iberdrola Retribución Flexible" optional dividend system

The "Iberdrola Retribución Flexible" system

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The optional dividend system "Iberdrola Retribución Flexible" offers the shareholders the opportunity to decide whether they prefer to receive all or a portion of their remuneration in free newly issued shares of the company or in cash.

This system is carried out through a capital increase charged to reserves and the payment of a cash dividend. Thus, all shareholders will receive a free allocation right per share held as of the record date. Shareholders who wish to receive the cash dividend will have to expressly waive these rights.

As a consequence, on January 2024 the shareholders will be able to choose between the following remuneration options during the Common Election Period(1):

a) Receive free newly issued shares;

b) Receive cash by selling all of a portion of the free allocation rights in the market;

c) Receive cash by means of the payment of the Interim Dividend for 2023.

Shareholders will be able to combine any of the options mentioned above with respect to the different groups of shares owned by each shareholder.

The value of the remuneration that the shareholders will receive from the Company under the options referred to in options (a) and (c) above will be equivalent (in terms of market value and notwithstanding the tax treatment applicable to each of them).

Iberdrola estimates that the gross amount of the Interim Dividend per share will be, at least, 0.200 euros.

(1) We recommend that you check the deadlines of each option with your bank as they may present peculiarities.

 

“Iberdrola Retribución Flexible” system

Practical Example

Free capital increase charged to reserves
1 share on the record date: 1 free allocation right

Hypothesis

  • Shareholder with 1,000 shares on the record date will receive

    1,000

    rigths

  • Number of rights needed to get a new share

    51

    rights

  • Amount of the Interim Dividend

    0.200

    euros

The Shareholder has three options
withholding tax

  • Receive newly issued Iberdrola shares
    without
    The shareholder receives 19 newly issued Iberdrola shares 1
  • Sell the free allocation rights in the market
    with
    The shareholder receives 162.00 net euros2
  • Receive the Interim Dividend
    with
    The shareholder receives 162.00 net euros3

In addition, shareholders do not need to choose one of the options, as they can combine them according to their requirements."

  • (1) The new shares will be delivered to shareholders free of charge and fees. In accordance with the applicable law, the custodian of your shares will be entitled to charge the management fees and expenses it deems appropriate, including fees for processing purchase and sale orders of the free allocation rights.
  • (2) On the assumption of the sale of the rights at 0.200 euros. The total amount of the sale is subject to IRPF withholding tax.
  • (3) The Interim Dividend will be, at least, 0.200 net euros and will be subject to a 19 % withholding tax. The final amount of the Interim Dividend will be announced on 5 January 2024.