Hybrid presentation 14th November 2017 - Iberdrola
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Hybrid presentation 14th November 2017
Legal Notice
DISCLAIMER
This document has been prepared by Iberdrola, S.A. exclusively for use in connection with the offering by Iberdrola International B.V. of Undated Deeply
Subordinated Reset Rate Guaranteed Securities unconditionally and irrevocably guaranteed on a subordinated basis by Iberdrola, S.A. (the “Offering”).
As a consequence thereof, this document may not be disclosed or published, nor used by any other person or entity, for any other reason without the express and
prior written consent of Iberdrola, S.A.
Iberdrola, S.A. does not assume liability for this document if it is used with a purpose other than the above.
The information and any opinions or statements made in this document have not been verified by independent third parties; therefore, no express or implied warranty
is made as to the impartiality, accuracy, completeness or correctness of the information or the opinions or statements expressed herein.
Neither Iberdrola, S.A. nor its subsidiaries or other companies of the Iberdrola Group or its affiliates assume liability of any kind, whether for negligence or any other
reason, for any damage or loss arising from any use of this document or its contents.
Neither this document nor any part of it constitutes a contract, nor may it be used for incorporation into or construction of any contract or agreement.
Information in this document about the price at which securities issued by Iberdrola, S.A. have been bought or sold in the past or about the yield on securities issued
by Iberdrola, S.A. cannot be relied upon as a guide to future performance.
IMPORTANT INFORMATION
This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of (i) the restated text of the Securities
Market Law approved by Royal Legislative Decree 4/2015, of 23 October; (ii) Royal Decree-Law 5/2005, of 11 March; (iii) Royal Decree 1310/2005, of 4 November;
(iv) and their implementing regulations.
In addition, this document does not constitute an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, nor a
request for any vote or approval in any other jurisdiction.
For information regarding the Offering, please refer to the Offering Circular dated November [], 2017.
The shares of Iberdrola, S.A. may not be offered or sold in the United States of America except pursuant to an effective registration statement under the Securities
Act of 1933 or pursuant to a valid exemption from registration. The shares of Iberdrola, S.A. may not be offered or sold in Brazil except under the registration of
Iberdrola, S.A. as a foreign issuer of listed securities, and a registration of a public offering of depositary receipts of its shares, pursuant to the Capital Markets Act of
1976 (Federal Law No. 6,385 of December 7, 1976, as further amended), or pursuant to a valid exemption from registration of the offering.
This document and the information presented herein was prepared by Iberdrola, S.A. solely with respect to the consolidated financial results of Iberdrola, S.A. and
was prepared and is presented in accordance with the International Financial Reporting Standards (“IFRS”). This document does not contain, and the information
presented herein does not constitute, an earnings release or statement of earnings of Avangrid, Inc. (“Avangrid”) or Avangrid's financial results. Neither Avangrid nor
its subsidiaries assume responsibility for the information presented herein, which was not prepared and is not presented in accordance with United States Generally
Accepted Accounting Principles (“U.S. GAAP”), which differs from IFRS in a number of significant respects. IFRS financial results are not indicative of U.S. GAAP
financial results and should not be used as an alternative to, or a basis for anticipating or estimating, Avangrid's financial results. For information regarding
Avangrid’s financial results for the nine-month period ended on September 30, 2017, please see the press release that Avangrid issued on the October 24, 2017,
which is available on its investor relations website at www.avangrid.com and the Securities and Exchange Commission (“SEC”) website at www.sec.gov.
This document does not contain, and the information presented herein does not constitute, an earnings release or statement of earnings of Neoenergia S.A.
(“Neoenergia”) or Neoenergia's financial results. Neither Neoenergia nor its subsidiaries assume responsibility for the information presented herein. For information
regarding Neoenergia’s financial results for the nine-month period ended on September 30, 2017, please see the press release that Neoenergia issued on November
5, 2017, which is available on its investor relations website at www.ri.neoenergia.com and the Brazilian Comissão de Valores Mobiliários (“CVM”) website at
www.cvm.gov.br.
www.iberdrola.com Hybrid Bond presentation, November 2017 2
Legal Notice
FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking information and statements about Iberdrola, S.A., including financial projections and
estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future
operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking
statements are statements that are not historical facts and are generally identified by the words “expects,” “anticipates,” “believes,”
“intends,” “estimates” and similar expressions.
Although Iberdrola, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and
holders of Iberdrola, S.A. shares are cautioned that forward-looking information and statements are subject to various risks and
uncertainties, many of which are difficult to predict and generally beyond the control of Iberdrola, S.A., that could cause actual results
and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and
statements. These risks and uncertainties include those discussed or identified in the documents sent by Iberdrola, S.A. to the Spanish
Comisión Nacional del Mercado de Valores, which are accessible to the public.
Forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of Iberdrola, S.A.
You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All
subsequent oral or written forward-looking statements attributable to Iberdrola, S.A. or any of its members, directors, officers,
employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-
looking statements included herein are based on information available to Iberdrola, S.A. on the date hereof. Except as required by
applicable law, Iberdrola, S.A. does not undertake any obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
www.iberdrola.com Hybrid Bond presentation, November 2017 3
Agenda
- Strategic overview page 05
- Business drivers page 13
- Outlook 2016-2020 update page 17
- Liquidity and Solvency page 23
- Green bond background page 28
- Hybrid Transaction page 34
- Final Remarks page 38
- Annex: Results presentation 9M 2017 page 40
www.iberdrola.com Hybrid Bond presentation, November 2017 /4
Agenda
Strategic
overview
www.iberdrola.com Hybrid Bond presentation, November 2017 /5
Global energy scenario
Increasing energy demand Need to reduce emissions
More electrification of the economy
• More low carbon sources will be needed: Utility scale / distributed
• Storage capacity required
• Digitized Grids will be crucial to manage a more complex energy system
• Active customer management
www.iberdrola.com Hybrid Bond presentation, November 2017 /6
The utility of the future
The utility of the future…
More renewables
More storage
More and smarter networks
More and smarter customer solutions
…is Iberdrola today
www.iberdrola.com Hybrid Bond presentation, November 2017 /7
The utility of the future
Iberdrola has anticipated the global energy transition
More RENEWABLES
Almost 60% Renewable capacity (2015) in
operation: 27.4GW1
+ 7GW in construction (1.65GW to be
commissioned after 2020)
World leader in onshore wind and strongly
investing in offshore
West of Duddon Sands, Irish Sea, UK
1 Managed capacity including hydro and 100% Neoenergia
www.iberdrola.com Hybrid Bond presentation, November 2017 /8
The utility of the future
Iberdrola has anticipated the global energy transition
More STORAGE
4.5GW Hydro pumped storage in
operation and construction
Equivalent to ~5M domestic
batteries of 13.5kWh
Cortes la Muela, Spain
www.iberdrola.com Hybrid Bond presentation, November 2017 /9
The utility of the future
Iberdrola has anticipated the global energy transition
More and SMARTER NETWORKS
Further improvement of operations and efficiency
HV & MV 100% digitalized Spain, UK and Brazil
Smart Grid US automation plan (2016-2021)
LV Smart Grid Spain: 200,000 km of smart grids and 9M smart meters
& UK: beating 2016 regulatory objectives on smart meters
Smart Meters US: 100% smart meters Maine, 63% Connecticut and NY AMI Plan
Digitalized
generation 100% Renewables (CORE), Hydro, Nuclear, CCGT and Cogeneration
operations
www.iberdrola.com Hybrid Bond presentation, November 2017 / 10The utility of the future
Iberdrola has anticipated the global energy transition
Smart Customer Solutions
Added Value / Personalization / Energy efficiency
to increase customer satisfaction and loyalty
Development of new solutions through Big Data:
Tailored tariffs Multichannel
Remote heating control Energy management
Distributed generation and storage Energy bank
…
www.iberdrola.com Hybrid Bond presentation, November 2017 / 11Iberdrola business model
A model that combines geographic diversification
with focus on energy transition businesses…
United
States
$
Continental United
Europe Kingdom
€ geographies £
currencies
businesses
Mexico Brazil
$ R$
…providing attractive shareholder remuneration today
with future growth visibility mainly in countries with A rating
www.iberdrola.com Hybrid Bond presentation, November 2017 / 12Agenda
Business
drivers
www.iberdrola.com Hybrid Bond presentation, November 2017 / 13Investments 2016 – 2020 update
Around 90% of investment:
regulated or long-term contracted activities
Investment by business Investment by currency
Generation
and Retail
Regulated
9% Renewables1 USD GBP
generation
7%
29%
Eur 25Bn 42% 48% Eur 25Bn
42% 20%
3%
Networks Euro2
1Including hydro Real
2Including German offshore windfarm: Wikinger
Currency diversification
71% allocated to countries with A rating
www.iberdrola.com Hybrid Bond presentation, November 2017 / 14Growth drivers 2016-2020
Regulated Generation &
Renewables
business customers
RD 1048/2013 Customers growth +30 MW
Capex € 1.8 bn Capex € 1.8 bn Capex € 0.3 bn
RIIO T1 / ED1 Business as usual +1,540 MW
Capex £ 2.3 bn Capex £ 1.0 bn Capex £ 3.7 bn
Rates cases +2,000 MW
Capex $ 5.8 bn Capex $ 4.1 bn
+3,600 MW +700 MW
Capex $ 2.0 bn Capex $ 0.9 bn
Tariff periods +330 MW
Capex R$ 1.7 bn Capex R$ 1.0 bn
CAGR between between between
EBITDA* 5% & 7% 2% & 4% 8.5% & 10.5%
* Corporation and other business not included
www.iberdrola.com Hybrid Bond presentation, November 2017 / 15The Utility of the Future
Execution of our 2016-2020 Plan well on track
and ensuring growth post 2020
2016-2020
Post-2020
Growth investment plan
Eur 22 Bn completed or in Seizing opportunities beyond
construction (90% of Plan) 2020 in…
low carbon sources
networks storage
Execution well on track Ensuring further growth
www.iberdrola.com Hybrid Bond presentation, November 2017 / 16Agenda
Outlook 2016-2020
update
(as presented in February 2017)
www.iberdrola.com Hybrid Bond presentation, November 2017 / 17Financial Strategy for 2017-2020
Main financial guidelines for 2017 – 2020 period:
Financial Protecting the company from interest rate increases:
structure increasing fixed rate debt >60%
Optimizing liquidity management , covering 18 months in
Liquidity
stressed scenario
FX risk
Structural & annual coverage
management
Solvency ratios Maintaining solid levels to preserve credit quality. Asset rotation
& hybrids to be used if needed to maintain financial strength.
Financing Strong diversification in sources of finance provides access to
many markets, banks and supranational lenders
www.iberdrola.com Hybrid Bond presentation, November 2017 / 18Sources and uses of funds
91% of the plan needs are funded by operating cash flow,
which will grow as the plan investments pay -off
Sources 2017 – 2020 Uses
1% Divestments
8% New Debt 10% Capitalized costs
25% Dividends
91% FFO Investments
65%
With current investment plan, we expect 2017 & 2018 to have solvency ratios
in line with 2016, and to strengthen in 2019 & 2020
www.iberdrola.com Hybrid Bond presentation, November 2017 / 19Evolution of results 2016 – 2020 update
Increasing annual average net profit growth…
2020 2015 – 2020 Net Profit/EBITDA Ratio
Update
Eur CAGR ~35%
EBITDA ~10Bn >6% 33%
Net profit ~3.5Bn ~7.5%
XX%
2015 2020
… and keeping growth expectations post-2020
due to contribution from new investments
www.iberdrola.com Hybrid Bond presentation, November 2017 / 20Return on investments
Maintaining financial strength and
improving return on investments
ROE Group ROCE Group
>8.5%
>6%
XX %
6.7%
5.2%
XX%
2015 2020 2015 2020
www.iberdrola.com Hybrid Bond presentation, November 2017 / 21Shareholder remuneration
Shareholder remuneration growing in line with results
DPS Eur
0.37 – 0.40
• Growing in line with results (pay-out between
65% and 75%) 20/30%
Shareholder
driving 2020 DPS between 0.37-0.40 Eur
remuneration
Floor
• Establishing a floor of Eur 0.31/share during the 0.31
0,31
15%
period 0.27
2014 2016 2020
Scrip Dividend & Maintaining scrip dividend
Share buy-back Share buy-back to avoid dilution
Number of shares Maintaining current number of shares at 6,240 million
www.iberdrola.com Hybrid Bond presentation, November 2017 / 22Agenda
Liquidity and solvency
www.iberdrola.com Hybrid Bond presentation, November 2017 / 23Net Debt / Group
Q3 2017 Net Debt closed almost Eur 4.5 bn higher than Dec’16,
mostly due to NEO´s integration. Investments +31.5% vs 9M 2016
Eur M
Hydro contributes
33,698
Eur 300 M* less than 1,707
previous year 1,715
29,230
3,997
-4,626
2,965
-1,290
Net Debt FFO FX NEO Net Dividends Other Net Debt
FY 2016 contribution Investments and Treasury 9M 2017
to Group’s Stock
Debt as of repurchase
(*) Eur 400 M before taxes 30/09/2017
Eur 1,707 M of “Other” include Eur 674 M of capitalised costs and subsidies
and Eur 577 M of working capital
www.iberdrola.com Hybrid Bond presentation, November 2017 / 24FFO / Group
FFO proforma increases 5.4% to Eur 6,652.5 M, but NEO contribution
is offset by the impact of extremely low hydro conditions in Spain
Eur M
6,652.5
482.3 -300.0 159.4
6,310.8
Gen. &
FFO Rest of FFO proforma
NEO Supply
FY 2016 Group September 2017*
Spain
(*) Last 12 months
Excluding adverse hydro conditions, that impact Gen&Supply in Spain,
FFO would have been Eur 300 M higher, reaching Eur 6,952.5 M
www.iberdrola.com Hybrid Bond presentation, November 2017 / 25Credit metrics / Group
Almost 75% of the impact on FFO/Net Debt (-1.4 p.p.)
is driven by the temporary effect of the situation of Spanish hydro in 2017
FFO / Net Debt Credit Metrics
Proforma: NEO 1 year Ex. NEO
21.5% FFO/Net Debt 19.7% 20.1%
-1.4 p.p 20.1% 19.7%
-0.4 p.p
Net Debt/EBITDA 4.1x 4.1x
RCF/Net Debt 17.0% 17.1%
FFO/Net Debt NEO
FFO/Net Debt Hydro Q3 2017 FFO/Net Debt
FY 2016 effects effect Q3 2017
EX. NEO Leverage 44.2% 43.8%
Other credit metrics also impacted
www.iberdrola.com Hybrid Bond presentation, November 2017 / 26Financing / Liquidity and Debt Maturity
Strong liquidity position covering
20 months of financing needs in a stressed scenario
Liquidity and Average Maturity Debt maturity profile
18,471
Total adjusted
Eur 7,389 M
Liquidity
4,293
3,004 2,784 2,350
Average Debt 564
6.1 years
maturity 2017 2018 2019 2020 2021 2022+
2019 includes Eur 500 M with an extension option of 6 months
2020 includes Eur 975 M with an extension option of 1 year
Not taking into account NEO, which finances itself on a standalone basis
www.iberdrola.com Hybrid Bond presentation, November 2017 / 27Green Bond
Background
www.iberdrola.com Hybrid Bond presentation, November 2017 / 28Green Bond Background
The business model and strategy of the Group is aimed at “the supply of
reliable, high-quality and environmentally-friendly energy”, through
sustainable, long-term industrial enterprise
Iberdrola issued its first public Green Bond in 2014, 3 more Green
Bonds in 2016, 2 in 2017 + contracted a Green Loan
in total representing EUR 5.7bn
In line with its
CSR and
Iberdrola has updated its Green Bond Framework, aligned with the
Sustainability
2017 ICMA Green Bond Principles
policies and
this context…
The green bond and loan proceeds have and will be used to
(re)finance renewable energy and transmission projects, contributing
to climate change mitigation and energy management.
To support its long term strategy, Iberdrola will apply
its’ existing Green Bond Framework to the new issuance,
and has appointed Vigeo Eiris to provide a Second Party Opinion
www.iberdrola.com Hybrid Bond presentation, November 2017 / 29Use of Proceeds
In compliance with • Producing Electricity from renewable sources
ESG criteria evaluated
• Improving the Energy Mix of Iberdrola
by Vigeo Eiris, Eligible
Green Projects are • Reducing the necessity and load factor of the
Renewable Energy Fossil Fuel Generation in the countries where it
projects which aim to: operates
• The projects include investments in development,
construction, installation and maintenance of
The net proceeds of renewable energy production units
the 2017 Green Hybrid
• The energy is produced from renewable non-fossil
Bond will be used to
sources, more specifically from wind power
(re)finance, in whole
(onshore and offshore)
or in part, Renewable
Energy Projects: • The available projects are existing and on-going
projects located in the United Kingdom and
Germany and managed by Iberdrola subsidiaries.
www.iberdrola.com Hybrid Bond presentation, November 2017 / 30Eligible Projects and Management of Proceeds
• Compliance with the Use of Proceeds: all projects will be verified for compliance with
the Eligibility Criteria and with the CSR and Sustainability policies by Iberdrola’s
Business, Sustainability, CSR and Legal teams
• Iberdrola will check the absence of any material ESG controversies (application of the
Evaluation exclusion criteria)
and Selection
• The list of selected Eligible Projects is determined by Iberdrola’s Business, Legal, CSR
Eligible and Environmental teams, based on internal expertise, and submitted to the Finance
Projects Department for validation and selection
• Responsible management of each project is monitored at corporate level and at project
level through the relevant performance indicators
• Iberdrola will track the allocation to Eligible Projects to avoid double counting with other
green bond or loan proceeds. This tracking is integrated into the company’s annual
financial reporting process.
Management
of Proceeds • The allocation of funds will be reviewed annually by an external auditor.
• In case of asset divestment, Iberdrola commits to use the net proceeds to (re)finance
other Eligible Projects which are compliant with the current framework
www.iberdrola.com Hybrid Bond presentation, November 2017 / 31Reporting
The Issuer commits to report annually and transparently on the Green Hybrid
Bond, in its Annual Sustainability Report, on:
• Use of proceeds: list of (re)financed projects, with related description, fund
Reporting allocation and compliance of selected projects with the Green Bond framework.
• Environmental benefits: annual estimates of climate benefits (outputs and/or
impacts) of each Eligible Projects’ share (re)financed by the Bond, then
aggregated at Bond level
At project level:
Use of
• List of financed projects with related description (type, location, operation date, size)
Proceeds
Reporting Indicators
• Iberdrola’s share (in %)
Reporting
Output Reporting indicators:
• Installed (attributable to the bond) renewable energy capacity of the wind farms (in MW)
Environme
• Annual renewable energy produced (attributable to the bond) by the wind farms (in
ntal MWh)
Benefits
Impact Reporting indicators:
• Annual GHG emissions avoided (in tCO2e)
www.iberdrola.com Hybrid Bond presentation, November 2017 / 32Q&A
What is Iberdrola’s commitment to allocation to green projects and reporting on environmental
benefits?
• Iberdrola is committed to allocate green projects and report on environmental benefits while the
hybrid bond is outstanding
In the case that the call option is exercised, what will happen to the allocated projects and reporting?
• The proceeds will be allocated towards green projects until the call date; reporting will also
continue for that duration of time.
• After the call option is exercised, there is no longer a commitment to allocate hybrid bond
proceeds to green projects or report on their environmental benefits.
• After the call option is exercised, live allocated projects can be re-allocated to other issuances
What will happen if the call option is not exercised?
• If the call option is not exercised, allocation towards green projects and reporting will continue
for perpetuity
• As per the commitments in our Green Bond Framework, if the underlying assets are sold or have
reached the end of their lifetime, the proceeds will be reallocated to new green projects.
www.iberdrola.com Hybrid Bond presentation, November 2017 / 33Hybrid
Transaction
www.iberdrola.com Hybrid Bond presentation, November 2017 / 34Transaction Rationale
Why issue hybrid capital?
• Capitalising on the attractive overall cost of the instrument
• Supporting solid solvency ratios to maintain financial strength
• Diversifying sources of finance keeping on the balance sheet the hybrid
instruments as part of the capital structure ahead of the potential
upcoming redemption of its outstanding hybrid at the first call date
www.iberdrola.com Hybrid Bond presentation, November 2017 / 35Summary Terms of the New Hybrid
Issuer Iberdrola International B.V.
Guarantor Iberdrola S.A.
Currency / Size EUR benchmark
Senior Rating (M / S / F) Baa1 (positive) / BBB+ (stable) / BBB+ (stable)
Expected Issue Rating (M / S /
Baa3 / BBB- / BBB-
F)
Maturity / Call Perpetual NC-5.5 with 3-month par call prior First Reset Date in Year 5.5
Subsequent Calls Every Interest Payment Date thereafter
[ ● ]%, annual fixed until First Reset Date in year 5.5, then reset at 5-year mid-swaps plus initial margin plus
Initial Coupon
any step-ups (see below) every 5 years
First Step-Up 25bps in year 10.5
Second Step-Up Further 75bps in year 25.5
Replacement Language Intention based, with customary carve-outs
Cumulative and compounding at the Issuer’s option; Compulsory repayment upon payment of cash dividends on
Optional Deferral
ordinary shares, parity obligations and certain other payments or repurchases, subject to customary exceptions.
Withholding Tax Event, Substantial Purchase Event (75% repurchased) - at par
Early Redemption
Accounting Event, Capital Event, Tax Event – 101% prior to First Call Date, par thereafter
Change of Control 500bps step-up upon the occurrence of a Change of Control Event if the Notes are not called at par
Ranking of the Securities Deeply subordinated, senior to Ordinary Shares and preference shares
Ranking of the Guarantee Deeply subordinated, senior to Ordinary Shares and other shares
Equity Credit (M / S / F) 50% / 50% (until first call date) / 50% expected
Luxembourg / English Law, except securities subordination governed by Dutch Law and guarantee subordination
Listing / Governing Law
governed by Spanish Law
Denomination EUR100k + 100k
Use of Proceeds (Re)finance Renewable Energy Projects
www.iberdrola.com Hybrid Bond presentation, November 2017 / 36Structural Comparison to Recent Hybrid Deals
Issuer Iberdrola International B.V. Ferrovial Nethrrlands B.V. Danone TenneT Holding B.V.
Issue Date [November 2017] 7 November 2017 23 October 2017 10 April 2017
Currency / Size EUR benchmark EUR500m EUR1,250m EUR1,000m
Senior Rating (M/S/F) Baa1 (positive) / BBB+ (stable) / - / BBB (stable) / BBB (stable) Baa1 (stable) / BBB+ (neg) / - A3 (stable) / A- (stable) / -
BBB+ (stable)
Issue Rating (M/S/F) Baa3 / BBB- / BBB- expected - / BB+ / BB+ Baa3 / BBB- / - Baa3 / BB+ / -
Perpetual NC-5.5 with 3-month par Perpetual NC-5.5 with 3-month par Perpetual NC-5.6 with 3-month par
Maturity Perpetual NC-7.1
call prior First Call Date call call
Every Interest Payment Date Every Interest Payment Date Every Interest Payment Date Every Interest Payment Date
Subsequent Calls
thereafter thereafter thereafter thereafter
Initial Coupon [ ● ]% 2.124% 1.750% 2.995%
First Step-Up Date / Margin 25bps in year 10.5 25 bps in year 5.5 25 bps in year 10.6 25 bps in year 12.1
Second Step-Up Date / Margin Further 75bps in year 25.5 Further 75 bps in year 25.5 Further 75 bps in year 25.6 Further 75 bps in year 27.1
Intention based, with customary Intention based, with customary Intention based, with customary Intention based, with customary
Replacement Language
carve-outs carve-outs carve-outs carve-outs
Cumulative and compounding at Cumulative and compounding at Cumulative and compounding at Cumulative and compounding at
the Issuer’s option, subject to the Issuer’s option, subject to the Issuer’s option, subject to the Issuer’s option, subject to
Optional Deferral compulsory repayment upon compulsory repayment upon compulsory repayment upon compulsory repayment upon
payment of cash dividends and payment of cash dividends and payment of dividends and certain payment of cash dividends and
certain other payments certain other payments other payments certain other payments
Withholding Tax Event, Substantial Withholding Tax Event, Substantial
Withholding Tax Event, Substantial Withholding Tax Event, Substantial
Purchase Event (80)%, Change of Purchase Event (80)%, Change of
Purchase Event (75)% - at par Purchase Event (80)% - at par
Control - at par Control - at par
Early Redemption Accounting Event, Capital Event, Accounting Event, Capital Event,
Accounting Event, Rating Event, Accounting Event, Rating Event,
Tax Event - 101% prior to First Call Tax Event - 101% prior to first call
Tax Event - 101% prior to first call Tax Event - 101% prior to first call
Date, par thereafter date, par thereafter
date, par thereafter date, par thereafter
Change of Control 500bps step-up and call N/A 500bps step-up and call 500bps step-up and call
Deeply subordinated, senior to Deeply subordinated, senior to Deeply subordinated, senior to Deeply subordinated, senior to
Ranking of the Securities
preference and ordinary shares preference and ordinary shares preference and ordinary shares preference and ordinary shares
Deeply subordinated, pari passu
Ranking of the Guarantee Deeply subordinated, senior to with preference shares, senior to N/A N/A
ordinary shares and other shares ordinary shares
Luxembourg / English law except Dublin / English Law except
Listing / Gov. Law Paris / French Law Amsterdam / Dutch Law
subordination subordination
Denomination EUR100k + 100k EUR100k + 1k EUR100k + 100k EUR100k + 1k
Explicit Green Project Use of
Yes No No Yes
Proceeds
www.iberdrola.com Hybrid Bond presentation, November 2017 / 37Final remarks
www.iberdrola.com Hybrid Bond presentation, November 2017 / 38Final remarks
Iberdrola is one of the largest electric utilities in the world producing and supplying
electricity to around 100 million people in the countries in which it operates
The company has positioned itself as leader in clean energy: Iberdrola is the top renewable
energy producer in Europe and a global leader in terms of installed onshore wind power,
and thus has become one of the biggest Green Bond issuer
Iberdrola is developing a growth plan, supported by a strong investment drive between
2016 and 2020, predominately in regulated businesses or long-term contracted,
which will further strengthen its business model
Iberdrola’s resilient model and diversification in businesses and countries, allows it to
offset the negative effects from challenging operating conditions in 2017
Shareholder remuneration track record: confident on the long term performance and
structural resilience of the Group, 2017 interim shareholder remuneration has increased by
3.7%; dividend pay-outs act as “payment pusher” for the hybrid
Committed with solid solvency ratios maintaining financial strength
www.iberdrola.com Hybrid Bond presentation, November 2017 / 39www.iberdrola.com Hybrid Bond presentation, November 2017 / 40
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9M 2017
Results
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