Frequent questions

Iberdrola, S.A. ("Iberdrola" or the "Company) is the holding company of an international industrial group that produces and supplies electricity in a clean, reliable and responsible way to millions of people all over the world. Established in 1901, Iberdrola's business model is based on a mission, vision and values whose common denominator and driving principle is the commitment to sustainable creation of value in all its activities for the good of society, its employees, its providers, its shareholders and other stakeholders.

Besides the Iberdrola holding company, the main companies belonging to the Iberdrola Group are:

The subholding companies (Group Structure - Iberdrola). In each of the countries where the Group does business, these include the stake in the parent companies of the energy businesses that are conducted in this region and centralise the provision of common services to those companies.

Parent companies (Group Structure - Iberdrola) are tasked with the effective management and administration and the control of these businesses.

The Corporate Governance System is the internal framework made up of the By-Laws, the Mission, Vision, and Values of the Iberdrola Group, the Corporate Policies, the Governance Rules and the Company's compliance system.

This structure streamlines ordinary management of businesses and provides proper Group coordination to achieve maximum efficiency.

The Board of Directors centres its activity on defining and supervising the Group's strategic objectives and organisational model, including the approval of the corporate policies on governance, compliance with standards, risks and social responsibility.

The Executive Committee and the following consulting committees: Audit and Risk Supervision Committee, Appointments Committee, Remuneration Committee and Corporate Social Responsibility Committee.

Iberdrola's primary business areas are:

• Regulated Business: this includes all energy distribution and transmission activities, as well as any other regulated activity in Spain, the United Kingdom, the United States of America and Brazil.
• Liberalised Business: this encompasses Iberdrola's liberalised activities in Spain, Portugal, the United Kingdom, Mexico and Continental Europe.
• Renewables Business: this comprises the activities associated with wind power, a line of business in which Iberdrola is a worldwide leader, with a strong presence in Spain, the United Kingdom and the United States.

Iberdrola's more than 600,000 shareholders are at the centre of its strategy and its Corporate Governance System.

Proof of this is that, as early as 2015, it was the first electricity company amongst the ten largest in the world by market capitalisation to approve an engagement policy to bolster shareholders' rights and involvement in the company via new channels of participation and a constructive, permanent and effective two-way dialogue.

For many years now, the company has endeavoured constantly to improve its corporate governance, ethics and transparency, which has placed Iberdrola at the forefront of best international practices and led to receiving recognition and awards from prestigious international organisations.

Iberdrola is firmly committed to cleaner energies, which is one of the largest growing sectors along with smart grids. 66% of the Group's installed capacity is now free of emissions.

It is the largest renewable energy producer amongst European electricity companies, and a global bellwether in terms of installed onshore wind power and the cleanest electricity in the United States, with nearly zero emissions.

As a result of its unwavering commitment to the environment and to the decarbonisation of the economy, it has managed to reduce its emissions in Europe by 75% since 2000, reaching levels that are 70% below the average figures of the European companies in the sector. Since 2001, Iberdrola has closed power plants fuelled by coal and fuel oil totalling nearly 7500 MW of installed capacity; nonetheless, its commitment aspires to reducing emissions by 50% by 2030.

The 2016-2020 Plan includes investments of 25 billion euros, primarily in competitive renewable energies, smart grids and storage. These investments are intended for countries with high credit ratings and a strong growth potential:

• In the United States, AVANGRID has become a large platform for the development of new energy infrastructures. This subsidiary is the second largest wind farm operator in the country and centres its activity on grids and renewable energy.
• Iberdrola's subsidiary, ScottishPower, is the leading wind power generator in the United Kingdom and positioned to grow in the smart grids sector.
• In Continental Europe, Iberdrola is the leading company in the renewable energies and smart grids market. Iberdrola also has the largest pumping capacity on the continent, with current operating power at 3200 MW and another 880 MW under construction.
• Energy reform in Mexico has opened the way for Iberdrola, currently the largest private producer of electricity, to become the leading candidate to make the most of opportunities in the generation business, as well as in renewable energy, with a wind power capacity that will reach 1065 MW in 2020.
• Reconstruction of the energy industry in Brazil is an opportunity for Neoenergia, Iberdrola's Brazilian subsidiary, in both the networks and renewable energy areas.

After more than 15 years at the forefront of energy transition and commitment to renewable energies, smart grids and efficient energy storage, the company intends to continue transitioning with the support of the global commitment to reducing emissions that arose from the Paris Agreement.

Iberdrola will continue to invest in solar photovoltaic and land-based wind power projects, and especially in offshore wind power projects. It will also continue its investment in the expansion and digitalisation of smart grids, thereby offering more services to its customers while optimising operations and efficiency, as well as in pumped storage.

Iberdrola faces the coming years with a solid, forward-looking, profitable and value-creating project, supported by a growth strategy sustainable in terms of its management capacity and financial and technological potential, capable of successfully addressing the challenges posed by an energy panorama in full transformational swing.

Iberdrola is promoting energy efficiency through several actions that can be classified into three areas: as an electricity company, it incorporates clean, advanced and efficient technologies into its production and distribution processes; as a retailer, it offers efficient solutions to its customers; and as an energy consumer, it ensures ongoing improvement of energy efficiency at its work centres, buildings and vehicles, developing mobility plans and raising awareness amongst its employees.

Iberdrola has incorporated the Sustainable Development Goals (SDG), defined by the United Nations for the 2015-2030 time frame, to its business strategy and its Sustainability Policy.

In line with its activity, Iberdrola focuses its efforts on an affordable and non-contaminating energy supply (goal 7) and action for the climate (goal 13). Iberdrola's Electricity for All scheme has provided access to electricity to more than one and a half million beneficiaries in developing countries. The goal is to reach four million beneficiaries in 2020. In addition, the Group makes a direct contribution to guarantee clean water and sanitation (goal 6), has increased its investment in R&D&i activities (goal 9), promotes the respect for life on land (goal 15) and works to establish partnerships for the goals (goal 17). The company also has an indirect input into all the other Sustainable Development Goals. Iberdrola's contribution to the social and economic development of the communities in which it operates and its protection of the environment is implemented through its sustainable energy business model.

Amongst other awards, Iberdrola has been recognised as one of the most sustainable companies in the world according to the Global 100 Most Sustainable Corporations in the World index and is the only European electricity company selected in the 18 editions of the Dow Jones Sustainability Index. Iberdrola also publishes an annual report that integrates the information on the Company’s performance into the economic, environmental and social dimensions, drafted in accordance with the Global Reporting Initiative standard.

The world needs more energy that is cleaner and more sustainable, which requires a substantial change to the energy mix: it is necessary to increase the percentage of electricity, especially in the transport and construction industries, and to make changes in the technologies used to produce it.

Although it only accounts for 25% of global emissions of greenhouse gases, the electricity sector offers more efficient and reliable solutions for decarbonisation, since it uses the necessary technologies (renewable sources) to attain this goal.

The subsequent process of electrification of the economy requires increasing investments in clean energy generation, smart grids and more storage.

All the information at the disposal of shareholders is included in the area of Iberdrola's corporate website dedicated to each General Meeting with the announcement of the call to meeting, which is published at least one month before the meeting is held. The announcement of the call to meeting is also published in the Official Bulletin of the Commercial Registry (https://www.boe.es › BORMEExternal link, opens in new window. ) and on the website of the National Securities Market Commission (https://www.cnmv.es/External link, opens in new window. ).

As established in Iberdrola's By-Laws, the General Meeting must be held in Bilbao. The specific premises for the meeting is indicated in the announcement of the call to meeting of each General Meeting. If the General Meeting is held exclusively by remote means, the place of the meeting shall be deemed to be the registered office.

The General Meeting must be held within the first six months of each year, on the date decided by the Board of Directors. The date of the meeting is notified at least one month before the event in the announcement of the call to meeting, which is published in the area of Iberdrola's corporate website dedicated to each General Meeting.

The 2020 General Meeting and the 2021 General Meeting have been held exclusively by remote means, with no service desks nor commemorative gifts available in order to safeguard the health of the shareholders and all  persons involved in the organization thereof.

In compliance with the declaration of the state of alarm by the Government and given the restrictions imposed on the circulation of persons, Iberdrola has decided to eliminate the traditional commemorative gift in order to protect the health of its shareholders and proxy representatives, as well as of its professionals and service providers, on the occasion of the 2020 General Shareholders’ Meeting.

Iberdrola has a policy on payment of attendance bonus included in the Shareholder Engagement Policy which is available on the corporate website (www.iberdrola.com). There was no attendance bonus at the 2021 General Meeting as it was called to be held exclusively by remote means.

All those who have their shares registered in the book-entry register at least five days prior to the date on which the Shareholders’ Meeting is to be held. A minimum ownership of shares is not required.

The law requires co-owners to designate one person to exercise their rights; therefore, only one person can attend the General Meeting.

Yes. All shareholders having the right to attend may be represented at the Shareholders’ Meeting by another person (even if not a shareholder).

Iberdrola facilitates the participation of all shareholders at the General Meeting by expanding and simplifying proxy and absentee voting systems. Thus, in addition to the traditional method of sending proxy cards and absentee voting via postal service, we provide shareholders with electronic and telephone channels. All these options are detailed in the area of the corporate website dedicated to each General Meeting.

Yes. The channels of participation are upgraded yearly so all shareholders can use the available means for simple, safe and accessible proxy or absentee voting, including electronic means, by telephone or via postal service, all of which are detailed in the area of the corporate website dedicated to each General Meeting.

Shareholders with visual impediments can request the delivery of the announcement of the call to meeting in Braille, as well as any other document published by Iberdrola associated with the call to the General Meeting in a format compatible with reading systems for persons with said impediments. They are also provided with audio description services. Shareholders with hearing impediments are offered simultaneous Spanish sign language interpretation so they can follow the Annual General Meeting. Measures are also provided to facilitate attendance to the premises for the General Meeting by persons with reduced mobility, for whom Iberdrola reserves specific seating.

The entry to the premises for the General Meeting of shareholder or shareholder companions with reduced mobility or special needs can be authorised. In this case, the companions will attend the event as guests.

Iberdrola's intention goes beyond being a sustainable company for its businesses by also applying this concept to its corporate events. As regards the Annual General Meeting, the public company of the Basque Government Ihobe and AENOR have certified that Iberdrola has complied with all criteria related to the environmental sustainability of events in the Autonomous Community of the Basque Country (Erronka Garbia) and with standard UNE-ISO 20121 on sustainable event management, respectively.

This is a new flexible remuneration formula implemented by the company that allows shareholders the latter to choose between the three following remuneration options:

(a) Receiving new Company shares at no cost, with no tax withholding.

(b) Receiving cash by selling their free allocation rights on the market (with tax withholding).

(c) Receiving a fixed cash sum that the Company pays for by distributing a cash dividend (with the corresponding tax withholding).

Moreover, shareholders do not need to choose just one option, they can combine the three available options, depending on their needs.

To find out more about the Iberdrola Flexible Remuneration, please click on the following link: https://www.iberdrola.com/accionistas-inversores/accionistas/dividendo-flexible.

The option assigned by default is payment of the entire dividend in Iberdrola shares. Therefore, if you do not want to receive the dividend in new Iberdrola securities, you must choose one of the available options. To do so, you must contact the bank or custodian of your shares and inform it of the option you have chosen within the time period indicated in the Iberdrola corporate website link below. You must then follow the custodian's instructions to begin the pertinent procedures: https://www.iberdrola.com/accionistas-inversores/accionistas/dividendo-flexible/calendario.

This decision must be made by you, as it depends on your personal, financial and asset circumstances and applicable tax regime. We recommend that you consult with your financial advisors before making a decision, if necessary.

To find out more about the tax withholding for the Iberdrola Scrip Dividend, please click on the following link: https://www.iberdrola.com/accionistas-inversores/accionistas/dividendo-flexible.

This deadline changes every year; therefore, to find out the deadlines that apply each year to each option, please refer to the information published at various times in the corporate website calendar, which can be found at the following link: https://www.iberdrola.com/accionistas-inversores/accionistas/dividendo-flexible/calendario.

The sale of rights on the market is a stock market transaction. As such, it is collected as soon as the transaction is settled, which is normally on the second day after the sale.

You will receive one right for each share.

The number of rights needed to receive a new Iberdrola share is calculated on the basis of the quoting price of Iberdrola shares during the five days before the approval to launch the transaction, as well as by the formulas approved by the General Shareholders' Meeting in that regard, which are available at the following link: https://www.iberdrola.com/accionistas-inversores/accionistas/dividendo-flexible/calendario.

Likewise, the number of rights required to receive a new Iberdrola will be notified as a significant event.

This will depend on the contract you have signed with your bank or the custodian regarding the deposit and administration of shares (or the instructions you have given to the latter). Generally speaking, these institutions sell leftover rights in the market with the corresponding tax withholding and pay shareholders the result of the transaction in cash.

However, if the contract or instructions that you have given the custodian do not contemplate or allow this sale, these released leftover shares (yours and those of all shareholders in the same situation) will be deposited in a securities account in the name of Iberdrola and on behalf of third parties. Three years after the deposit is established, the shares can be sold by Iberdrola and the cash amount of the sale will be deposited at the disposal of the interested parties in the Bank of Spain or the General Public Depositary as set forth in Article 117.3 of the Companies Act.

Yes. This will be an investment decision not associated with the "Iberdrola Scrip Dividend".

Iberdrola does not charge any fees; however, you must contact the custodian of your shares and ask if there are any fees associated with the payment of dividends, as well as their amount.

No. Increase in share capital is free of costs and fees. Iberdrola will assume the costs of issue, subscription, circulation, admission to trading and all other expenses related to the increase in share capital. However, in accordance with applicable law, the custodian of your shares will be entitled to charge the management fees and expenses it deems appropriate deriving from the maintenance of the shares in accounting records.

Shareholder remuneration (pay-out) shall be sustainable, compatible with maintaining the solid financial strength of the company and in line with companies having a similar business profile. In accordance with these criteria, shareholder payout is between 65% and 75% of Iberdrola net profit, as shown in the consolidated annual accounts.

Iberdrola normally pays out dividends to its shareholders twice a year: in December or January and in July.

The log of Iberdrola dividend payouts can be found at the following link: https://www.iberdrola.com/accionistas-inversores/accionistas/dividendo-flexible/historico.

You can also consult the specific number of dividend payouts at a given time and for a specific number of shares by using the dividend calculator at the following link: https://www.iberdrola.com/accionistas-inversores/tus-herramientas/calculadora-dividendos.

Use the following link to calculate and obtain a returns chart of investment in Iberdrola over a certain period of time, based on the closing price of shares on the day of reinvestment: https://www.iberdrola.com/accionistas-inversores/tus-herramientas/calculadora-rentabilidad.

Iberdrola shares are not nominal, therefore Iberdrola does not have updated information on their holders, their movements or specific situation.

You should contact the custodian of your shares, which will inform you of the amount of shares, their status and movements.

The share prices on a specific date can be found at the following link: https://www.iberdrola.com/accionistas-inversores/tus-herramientas/calculadora-financiera.

Iberdrola shares are listed on all four Spanish stock markets and are traded through the electronic continuous market (Spanish Stock Exchange). The company is also listed on the New York market in the form of ADR (American Depositary Receipt) and on the NYSE (New York Stock Exchange) as Avangrid.

Furthermore, it is part of over 65 internationals indices such as the Dow Jones Euro Stoxx 50, made up of the fifty largest and most liquid stocks in the euro zone, or the Dow Jones Sustainability Index, which brings together companies with the best sustainability profile.

As part of the policy of maximum transparency with the markets, we have launched the Shareholders’ Club so that everyone who has shown their support and confidence in our company's trajectory by purchasing Iberdrola shares can enjoy exclusive advantages.

To find out more about the advantages of belonging to the Shareholders' Club and sign-up requirements, please click on the following link: https://www.iberdrola.com/accionistas-inversores/accionistas/club-accionista.