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What is the "Iberdrola Retribución Flexible" system?

All the information about the optional dividend system

The optional dividend system "Iberdrola Retribución Flexible" offers shareholders the option to choose whether they prefer to receive all or part of their remuneration in new shares of the company or in cash.  

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

As a result, on the July 2025 edition of the "Iberdrola Retribución Flexible" optional dividend the shareholders will be able to choose from the following remuneration options(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 Supplementary Dividend for 2024.  

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 shareholders will receive under 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 Supplementary Dividend per share will be, at least, 0.404 euros.

(1)We recommend checking the deadlines for each option with your bank as they may have specific details.

 

“Iberdrola Retribución Flexible” system

Practical Example

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

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

    1,000

    rights

  • Number of rights needed to get a new share

    39

    rights

  • Amount of the Supplementary Dividend

    0.406

    euros

The Shareholder has three options
withholding tax

  • Receive newly issued Iberdrola shares
    without
    The shareholder receives 25 newly issued Iberdrola shares 1
  • Sell the free allocation rights in the market
    with
    The shareholder receives 328.86 net euros2
  • Receive the Supplementary Dividend
    with
    The shareholder receives 328.86 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 0.406 euros. The total amount of the sale is subject to IRPF withholding tax.
  • (3) The Supplementary Dividend will be subject to a 19 % withholding tax.