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 first edition of the “Iberdrola Flexible Remuneration” optional dividend system for 2026, implemented during the month of July, shareholders who choose the cash dividend will receive a total supplementary dividend of €0.427 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 in order to comply with its Shareholder Remuneration Policy and promote long-term value creation.

The Company has determined, in accordance with the formulas set out in the terms and conditions, that:

  • The number of free allocation rights required to receive one new share is 50.
  • The amount of the supplementary dividend is €0.425 gross per share.
  • The payment of the adjustment dividend is applicable and its amount is €0.002 gross per share. This dividend will be paid to all the Company's shareholders on the record date, regardless of the remuneration option they have chosen.

Accordingly, the target dividend of €0.427 gross per share envisaged for this edition of the system is achieved
.

“Iberdrola Retribución Flexible” System

Practical example
with Adjustment Dividend

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

Target Dividend:

€0.427 gross per share

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

    1,000

    rights

  • Amount of the Supplementary Dividend*:

    €0.424

    gross per share

  • Number of rights required to receive one new share:

    47

    rights

Adjustment Dividend amount:

€0.003 gross per share

* The Supplementary 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 21 new Iberdrola shares 1
  • Receive the Supplementary Dividend
    with withholding tax
    The shareholder receives €343.44 net 2
  • Sell the free-of-charge allocation rights on the market
    with withholding tax
    The shareholder receives €343.44 net 3

Regardless of the option chosen, the shareholder will
also receive an Adjustment Dividend4
of €2.43 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.

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

3 Assumes the sale of rights on the market at €0.424. The amount obtained is subject to personal income tax (IRPF) withholding.

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

 

Results of the "Iberdrola Flexible Remuneration" System, July 2026

Iberdrola shareholders who have chosen to receive new free shares of the Company in the first edition of the 2026 optional dividend system "Iberdrola Flexible Remuneration" represent 74.6% of the capital. For this reason, Iberdrola will issue 98.14 million new shares, within the framework of the capital increase planned to deal with this remuneration system, which represents an increase of 1.493% of its share capital.

On the other hand, Iberdrola shareholders who have chosen to receive cash through the Supplementary Dividend of €0.425 gross per share represent 25.4% of the share capital. As a result, the Company will pay its shareholders a total of €708.87 million to meet the payment of the supplementary dividend for the 2025 financial year.

Likewise, all shareholders will receive an Adjustment Dividend of €0.002 gross per share, for which the Company will pay a total of €13.15 million.

The final amount of the Total Supplementary Dividend amounts to €722.02 gross, which results from adding the final amounts of the Supplementary Dividend and the Adjustment Dividend paid to shareholders. 
 

Summary of results July 2026 (Supplementary 2025)
Opted for actions 74.6 %
New shares issued 98,141,516 (1.493 %)
Opted for Supplementary Dividend 25.4 %
Supplementary Dividend per share €0.425 gross
Total amount of the Supplementary Dividend €708.867.776,08 gross
Adjustment Dividend per share €0.002 gross
Total amount of the Adjusment Dividend €13.148.563,54 gross