IBE.MC - Earnings call transcript Q3 2022

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Ignacio Cuenca Arambarri

Gentlemen first of all we would like to offer a warm welcome to all of you who have joined us today for our 2022 Nine Months Results Presentation.

As usual we will follow the normal format given in our presentation.

We will begin with an overview of the results and the main development during the period given by the senior executive team that usually is with us; Mr. Ignacio Galan; Mr. Armando Martinez; and finally, Mr. Sainz. Pepe

web. move highlight Q&A going that questions via we'll also I to to submitted to like we the on this, session. the would take Following are only

our So, web please question ask only page, your www.iberdrola.com. through

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not Finally, this we expect last and you. that more be will XX today's informative that event hoping all of will minutes useful to than presentation

you ado to Mr. to Now, Please the without Galan. like would I further much very again. Galan. give Thank floor Mr. Ignacio

Ignacio Galan

to you morning appointed driving of today much saying start XX%, net already CEO. continue In of months, impact new gas million, except regulatory positive total million. to operating Investment Board profit Armando will net €XXXX a I different is Reflected our Spain up countries as as evolution last due flow and produces the done business our costs increase the years €X,XXX XX% Good also performance more we by healthy as to million social higher profit today's hires customers, market, in all strong that would €X,XXX charge million, like who in I in reached in by in less last that contribution dependency, prices conference business to energy, pass negative reached activity of public and in like over meeting, measures in million, in thanks for nine first has clear has thank Martinez, yesterday implemented. XX% he the Spain This tax one. X,XXX the very for where operating the usual in responding the did geographies, model of increased and on €X,XXX the more up resulted especially which €XX.X in EBITDA driven situations and the except needs last countries finance, cash again XX% to me current mentioned. of to the €X,XXX everyone decreased in as power the call. over months. by CEO. as strong billion all and we XX%, you know that Group jobs, group Armando not up with energy joining XX reached showing here year,

also continued have reinforcing and We business our profile. even financial more

of of €X.XX are presenting set our position liquidity EURX.X approved €XX we profit billion in the Board debt net an we billion us solid with to above XXXX our per maintaining shareholder face the position. the evolution a in today guidance for FFO quarter, a Driven XX% financial reaffirming by current last strong the and of market to commitment Our allow from share. interim situation and shareholder billion net are expected €X.X and increased to Yesterday Directors increase results our X.X% dividend remuneration. at the to

in US of mainly and on and the more impact Spain figure revaluation dedicated in Brazil in gas France, wind Brazilian which year-to-date dollar and third €XXX stable continued well of due reached United UK. XX% the hydro XX% XX% to a €X.X to tariff driven with by project benefit in €XX,XXX mentioned regulatory network real Thanks Spain Half States, activity base billion, a was this, in activity production I diversification EBITDA. United over contribution reaching and as solar the Brazil rise States. investment to all Investment of XX%, I XX% the million increase Driven by best affected wind higher network to and in Network of energy of Also by EBITDA output driven total wind. production as of networks the X,XXX even, to facilities evolution, by Australia. contributed offset and reach moderate a And last EBITDA. to US, as low Germany, of quarter of XX%. margins, capacity us XX of new increased wind positive million and increased and new months, period up from and investment our The mentioned investment. EURXXXX increasing has mentioned before XX% resulting by driven in States million lower frameworks, the geographies UK, Spain, as investment renewable installed was evolution by in of megawatts as business, EBITDA than to asset our year-on-year, XX% allowed and this offshore strong group United mainly As to factors. renewables up customer this a which total by offshore well. very group for contribute geographic already in market benefit for in dynamics all

for expected geographies. cases covering Networks, and filing York, New tariff the the Over our XXXX. distribution we total relevant new have rate The Massachusetts ongoing process asset in milestone along and its AVANGRID quarter, last of achieved the is with in currently base. licenses Connecticut usual In XX% Maine, business completed

decision on conversation the Justice, following and from will the framework be June joint decision with RIIO-EDX expect mid-XXXX. HVDC draft Regarding in has Ofgem in in and by the its project Eastern the NECEC make proposed the the will of the Maine common Ofgem continued final in Link by the final decision court we year trial after July, Court approved their before Super interconnection with the security project, has XXXX. by had In XXXX operational strategy networks to government U.K., will positive end. Also transmission we that of auction since held ScottishPower XXXX. asset, determination a Also, in developed already National scheduled. of start progressing reinforce solar resilience. to In are that XX% investment and in require as megawatt have Grid. new additional energy U.K., the construction operation to the the offshore, expected put production In Brazil, new four customers It in a is of and in the around wind round published onshore ScottishPower awarded X,XXX awarding transmission

States signed well deploy option expand have current and its for charging an Spain, We preserve from exchange growth on solar and wind in positive expect us electric new Iberdrola fast scope Petroleum reached now renewables points, the strength operation and our an solar their to resilient deal financial hybrid provide as ammonia onshore Greece. rates. impact January to Australia, business corresponding have like to scenario or is vehicles inflation. geographic green in has in negative evolution based hydrogen. linked Port AVANGRID other to energy Internacional XX,XXX a where driving enragement allowing In which Portugal. with in Iberdrola demand to and and commissioned capacity networks hydrogen megawatts on is has to to new with renewable United of agreement projects In macro Solar an of Wind and put XXXX. significant Portugal the Energía operational asset into thanks our Also, our Farm. be green And infrastructure to Iberdrola already agreement In regulatory contracts have Texas. wind in XXX Or to includes facility British Sempra added with to diversification and Spain Luzia we Australia to our Augusta we already operating in as XXXX-megawatt The of protection a pipeline. United XXX in we that States, in geographies our and megawatts activity Oitis is in Brazil, model or low-project maintain wind green and and Project countries any

sold, XX% XX% have total of exposure only Europe, cycles. for our for and Spain We production of output A XX% in XXXX to European with our limited produced with XXXX, combined in XXXX. gas for XX%

XX% And is wholesale which to energy for markets. price elaborate not maturity we needs, €XX our volatility billion. our our energy is Our of on model the in exposure based secured debt prudent XX% our Also, policy XXX% reached XXXX minimize had of our trading position equipment, have hedge. of and liquidity for fixed which close rates speculative XXXX CGS of at procurement with thanks to of

solutions our structural of The Finally, which in the reduce awareness imposed and led Based in the social has Spain. stable below Iberdrola crisis we current our for by million cash also September. Thanks prices generation emission regulatory and towards flow our crisis. the surcharges strong also to scenario by maintaining is an being with on and recent proposing customers which implementing on us to zero net sensitivity. to debt year €X,XXX renew and our adjusted companies the of portfolio spot current short-term future responsibility, from decisions commitment industries to they extra contracts market are impact demands generation affected contributing of to XX.X%, as Xcontinue individuals' all well up of as previous and and ratio of FFO is XX% families

the a attention our vulnerable maximizing customers. the availability also use to more of our generation promoting fleet in focusing energy are and We most efficient

employees taxes provide We aware are our and last we networks X,XXX crisis leaving months in the different with where Hiring present. in consensus require action will are also and public investment for million current billion that joint renewables in energy sector. the private €XX.X in XX to to up continue new and and the we €X,XXX behind contributing increasing self-sufficiency. But countries

coordinated been the in improve episodes authorities. European is gas to digital That a and short Using in in and indicates. have networks and avoiding And full role accelerating we are now public promote energy to of support in the origin in market. the the future. package and a COVID cost playing And done the almost market it an vulnerable is problem. at customers what active with consensus necessary is term that boost economic the economic price renewables reason this investment to self-sufficiency preserve crisis. For reduce the similar level the activity as the funds conversation There single response was activity repower dynamics

and increased the Avangrid performance production to $X,XXX Avangrid profit nine the closed cases net the due XX% Our showing on offshore cases. by months the wind gain results XXX construction. renewable impact reached to and in networks. to XXX agreement increased installed million megawatts CIP. thanks already of Avangrid million strong Gross two little under a allocated also with both $XXX to subsidiaries rate with restructuring Neoenergia are two-thirds presenting positive has and In megawatts solar first investment

XX% by of of in of Park investment In present target in and BRLX,XXX reviews of progressing who mainly Wind financial more is and company higher almost Neoenergia's Gross million networks Vineyard base to in allocated rest net project networks profit of the XXXX XX% the increased Massachusetts. the the asset last the City Pepe wind in over detail. will the result construction CFO reached consolidation coast offshore BRLX,XXX I impact to megawatts Brasilia. Additionally now Wind the the million by driven to of will renewables. and year Neoenergia hand group further of with Sainz than Brazil X%

Pepe Sainz

everybody. morning Thank to you, Chairman. Good

Chairman EBITDA up grew €X.X €X.X €X.X billion. has As FFO profit to to the the explained while billion billion was reached and net

million and Our €XX the FX hedged as year level at The evolution million at a €XXX in QX. profit to positive close already and net level for the had were of average EBITDA to we the has the effect billion. an billion €XX by XX% and the by euro the real procurements €X X% grew XX%. million by pound billion Revenues €XX.X reaching against €XX.X rose increased dollar

€XX.X consequence Net to XX% operating grew margin by and a XX% gross impact. billion excluding As FX X% to the €X.X expenses billion. rose

to impact except after regulatory to operating we asset the EBITDA linked grew increased in XX% to operating our margin growth EBITDA nonrecurring margin XX%, to FX certain below Analyzing from have Brazil, Excluding merit onwards. and a linked aligning had base, recognition New of revenue fell EBITDA Spain growth that with on assets, the well recurring by affecting by and a points by to at well GAAP we and the a effects rotation grew an of driven expenses net BRL recognized mainly geographies due to grew XXXX starting certain where networks two order positive IFRS providing issue regulatory million distribution adjustments $XXX was in the level. €X X% excluding basis. valuation June the of all into a and with operating billion, by second impacts positive billion from €X.X negative to the gross the group US EBITDA appealed the In the impact €XXX asset billion allows XX% and trust our appeal. earnings XX% in up assets more the stable million and results impact percentage $X.X performing FX XX% to accrue In tariff linked billion, we its positive and the business growing gross IFRS the in one-off quarter in EBITDA York XX% X.X US, that to efficiency recognition accounting expenses below XX% of

is In the higher asset IFRS. to EBITDA investments in is for which rate accounting the only addition, US $X.X positive and of billion, a business base. not recurring from there higher cases the to evolution increased linked impact, GAAP derived above-mentioned XX%

up, €X.X spot XX% despite very XX% resources higher our cold contribution XXX%, grew output price capacity FX environment. of and policy in Spain, asset Energy by UK, our more £XXX XX% €XXX better last increased not is the Once prices million XX% $XXX was snap a production. we and a to Iberdrola sales group base. EBITDA increasing installed to results with Texas that In In to due price taking the that as business, production of the environment million current to moderate in advantage thanks due the EBITDA billion have Finally decreased new prove fixed the lower XXXX. a growth seen excluding of than €X.X to impact. customers EBITDA prices X.X% quarter billion, EBITDA renewable high of to the X% again, positive million, US, and the first higher and year, the compensated partially accounted of higher versus wind consequence

higher better would million, negatively was grew XXXX. compensated cold XX% EBITDA rose X.X% energy to in EBITDA of the In have at by snap high affected the partially cold million. BRL snap in the In procurement billion, prices, wind capacity SVT by £XXX production by EBITDA to output higher been XXXX driven than compensating Excluding by Mexico, $XXX XXX and price driven the at average grew Texas slightly. Termopernambuco operation. impact, grew tariff. cycle UK, this EBITDA Brazil, megawatts has new combined Texas renewable lower thermal and to the In XX% X.X

onshore network and Provisions million Depreciation and offshore X% FX with mainly rest the higher business due to the XX% different billion world, €X.X in to base contribution Finally, from of activity and both excluding to across EBITDA XX% grew geographies. grew renewables impact. €XXX the growth. plus the XX% grew and asset billion, higher amortization D&A to €X.X

X.XX%. The to Excluding the XX% included debt the €XXX that to XXXX positive billing ratios September debt the to Nevertheless, million increase. million, debt fell control to is days bad grew over versus overdue results X.X%. billing would excluding of billing XX% like as ratio debt and FX X.XX% below one-offs. provisions provisions ratio of bad more impact, FX €XXX the fell XX% impact. XX than of still ratio XX% XX% growth financial Total stress commercial are I the increased under the was

€XXX million. inflation. costs EBITDA Excluding €XXX debt, expenses that, million due by cost to compensated financial is to than revenues €XXX mainly recurring million net €X,XXX million, grew to a the Debt-related at indexed Brazil to more nevertheless higher that level due of explained

€XX we Non-debt-related up had was to only rising positioned appreciation. two debt cost interest higher to in is mainly dollar in FX also funding. the €XXX debt for Iberdrola's the increase FX X.XX%. the net linked to prudent inflation million, the of to our balance Excluding well hedges. average was million million debt and impact linked and points There have and US is of Brazil, a a due approach rates Brazil debt increased costs mark-to-market as €XXX the negative basis

in excluding we forward Brazil is swaps this have XX% debt Our fixed moment. billion €X.X including that start at

structure. our the you Around see XX% indirectly. is and in XX% debt revenue As of directly our fixed another can our higher line linked to structure is fixed debt EBITDA inflation than

allowing has as XX% maintain FFO strong under to in company flow Our the said, investments the cash control. with compensates period, growth Chairman of the the debt our in

€XX.X €X.X only suppliers. fund had does sale Wikinger. The not million Including reduce have an on a impacts €XX.X taxes been and us that active to needs, force working Collaterals impact affected We capital billion regulatory billion. to by has working billion. management measures that have negative it debt include of our this collateral high €XXX prices energy us had capital and XX% of and of would allowed

As a our credit consequence this, of metrics continue improve. adjusted to

to debt Our improved times. adjusted net EBITDA to X.X

XX.X%. debt adjusted over almost to one percentage FFO net Our rose point

Iberdrola up flow to present, XX to cash adjusted debt needs and maintain up been financial a and of liquidity cover coverage end. day ratio including to Our XX leverage adjusted billion, scenario we able At was to PNM an needs to strengthened up months acquisition. XX.X% close ample our to financial to stressed XX.X%. the possible retained months in up net our has year €XX of transactions XXX%

sources all our with financing be to them. highly to continue of addition, access In diversified of

Our six to Wind the XX% billion. non-recurring of agreement Equity method grew result average reached million €XXX is life of restructuring as includes with impact years. CIP. debt profit Vineyard a Net of €X.X positive

the calendar the annex, you addition, with XXXX evolution fiscal our taxes the one-off payment. CIP to tax profit. exception dividend of and in negative the interim gain of net UK effects have recorded other In together from related fixed favorably In the affects the

Thank you very Now the much. Chairman presentation. will conclude the

Ignacio Galan

in conclude our until result company to has expectation we our model today we and the to evolution our for – is implementing Pepe. €X.X this trends proving the reaffirming decades. months. in last Pepe megawatts are our two once year obviously, expect so the year already September close In show, and Based are billion. resource quarter, again value you, customers, production end, will the the All of That is some not been of the production To capacity Thank €X profit outlook although billion and for we than the this that you, will solved. net quarter of and additional the thank fourth of ever. renewable normalization more up revert with wind nine X,XXX benefit fully the fourth first seeing to

our tariff that, Our a have volatility. operational with full prices Networks, we improving million top will macro we suppliers that to for framework secured protect continue In market instability. and €X,XXX On stable of closed will minimal year efficiency. investment are reach pressure with result

our of fixed terms In financing, XX% of at is debt rates.

allow factors, position liquidity billion the of exchange This per interim Directors once of an increase cover to X.X% sustainable our shareholder expect months again continue rates, share, shows positive thanks geographic impact of Board an commitment €XX January Our account, and all has us to needs to in Taking into growth diversification. of of of XX €X.XX payable on these having dividends. XXXX. remuneration we with approved our to a

a As position affected Iberdrola growth, contributing to more in to Iberdrola sustainable investing usual, of are dividend maintaining To show to alleviate driving is be contribute XXXX. solidity, July good the self-sufficient will of supplementary to a financial the crisis that which volatile situation, conclude, current paid these manage for system. in results those the impact and

in detailed information We that Capital the will company's upcoming you will be held our in on Day London. give Xth November of Market plans

your much person in attention. invited all for very Thank attend virtually. you are to You

answer questions you. Now, we are have. any may you to ready Thank

Ignacio Cuenca Arambarri

put see Bezzato, will that, buy few Credit recently question to we Suisse, I The the Freshney have welcome minutes. the we into side. and to who asked the soon management following in moved professionals Stefano you top be Mark the From next

Javier JB Lafuente. Javier from and Next Bank, Ahmed Stanley; Jefferies, Jose Royal Sitbon Fernando Deutsche from Brand; Bank finally Farman; is Canada; Morgan Barclays; Fernando James Gandolfi Markets, of from Guimaraes; Ruiz, Mediobanca, Capital Alberto Garcia, Suarez; Jorge from Arthur Sachs; Goldman Alantra,

guidance first regarding the the revenues? X.X% of And full guidance. The tax question is impact year XXXX any question is Spanish on includes

Ignacio Galan

yes. The answer is

I our have XXXX we factors main is in the outlook new installed. mentioned, think megawatts renewables. I

We factors. expect normalization of load

wholesale invest as well months. already sold €XX as to – I as networks, production €X.X price XX close mentioned billion have megawatt good as in we close hour I have price. to is In mentioned planned a well We

impact that results, the And especially – We have main and and I positive operating as Brazil on FX is think United in States. and reason.

– we think, we networks. focusing are not I are already

trading. We are not speculative

not collaterals are affected similar. we already So by or

liquidity. have We high

a maintaining is one. And debt, that fixed we the have mentioned reason are We well. rate I why as that as

the year. we So already – is that's why this X% which is proposing yes. But board of €X.XX, we're increasing in almost already included, is previous are dividend towards increase

Ignacio Cuenca Arambarri

Next is has the on structure? you do company rates, financial the given reconsider its that to interest think spike

Ignacio Galan

can maintain that already Pepe one. Well, you

goes explain I already think has be But to in one why to detail. when more have Pepe well the that can maintain nevertheless, things maintained. we you

Pepe Sainz

And the I have of the right No are we move balance to rates Chairman I cases it of the the fixed protects That now I raises of completely maintain to we a interest seeing year. worked And high sheet obviously, floating on mean interest quite think now. see rates. strategy that financial can that up right has future this this I in we agree well. structure. But this are actually, we had that think now, more as we doesn't how going what says. depending last bit mean, that little we for have

Ignacio Cuenca Arambarri

did why of says, Business Martinez the beginning CEO a succession Armando plan? to this CEO from promote question The you Is position?

Ignacio Galan

is Well, continuity. a Martinez, of appointment this sign

think I nothing it's new. So

And I think to sure, well business. new years. think doing I ago. he been recent a the his as he planned it the will time I'm in lead long continue group will And do was has in he as position,

it's not revolution. think a I It's continuity. a

is something, We already we we the planning. precisely in what see of opportunity was particular So making this moment. like

was something was So a but for already not long that this ago. it is time planned -- --

Ignacio Cuenca Arambarri

regarding billion you debt XXXX? months guidance that. year nine compared expectations €XX reiterate Do of of next are net XXXX? is to question, your What your of cost the of to the Next by for debt end

Ignacio Galan

Pepe?

Pepe Sainz

more tell will I of Capital less, you the Markets level. cost similar years next you the -- will What we the or can the is be September in debt in Day. the tell to Well, that for

there that by in guidance. reiterate So, sense that. the billion billion close. are going I is where end we yes, of €XX changes And we to expecting not be the to are €XX many on XXXX, mean

Ignacio Cuenca Arambarri

concerned And seeing question, what you cycles? a you debt. with the Fifth decline a in are bad about slide in are you is in increases previous future? show the How

Ignacio Galan

So I measures already but as are our mentioned think in very presentation. as during position, I customers we complex to only mentioned, not taking to my help our also improve situation, I a

instance, are think are difficulties in providing I examples, for we payment flexibility for payments. those with

-- give think the So I these but all Pepe, you of further details perhaps can things.

Pepe Sainz

it what right that Yes. being this control. is ratios the able now, Well, to we true showed is we are under maintain

that are because to we have have We monitoring. seen billing now, bad right prudent, the that debt these overdue is as provisions, ratios billing. are in make as vigilant over are decrease XX% we and to on over you I see, the over maintaining this going control. we as sure debt be But them decrease obviously, to total was But the can a has mentioned, very be something under mentioning, we Chairman

Ignacio Cuenca Arambarri

scenario. European

any longer. third, latest on a view proposal on and cap; resistant price work the reform European two, effectiveness how since interested Next, for to on one, price gas in marginal system? on us that full can system does debate please your for the Iberdrola the you cap of views to give not energy finance I'm of how reform prices; views

Ignacio Galan

electricity. to the state different which cause that I'm The market of months of the the many -- the problem. year, head last the that document of is July think problem. European market pleased gas government and is they most talking point gas the quite the after countries several in solution. the in make has mentioned Commission the the was about point of is that not dynamics, It's a initial I well, toolbox, already So, already was things, arrived Electricity,

talk talking about electricity, gas. lot are which heard we is of is TTF months, is different already much marginal what TTF. not difference think of the And we system are European the with talking what mid already I Spain but we TTF, case is linking about the think markets, for the in I the the not of a not gas, between marginal now, system the we which

I is or or think the contract, think based TTF. the gas, in electricity gas the in to marginal Europe, the nothing the prices coal linked certain system I see price in with oil price to is the is the TTF. of prices, of But

are gas how reform market, head is are the the state we of problem. cause talking Now, about to which the of

So, invest think new requires solution certain is One, provide is to electrification, to I this meetings and accelerating these permits arriving to after several is now, to And the accelerating investment. if already permit, If things. crisis. avoid to incentives the to of who the penalizing the in Europe. instead incentivating -- the process is ways of and going obtaining it's not modifying renewables, the or

is invest I precisely sectors. all they're United doing. what think, they in providing Towards to incentives already certainty States, are that, we States and The have seen already United already what IRR in the in

they XX renewable, extending years. in for are So the PTCs

none They make of electrification, XX% helps for part attractive. $X obtain whatever transport. XX know visibility already in during will they defined XX we years, hydrogen. then that hydrogen, for in we So XX tons talking are credits. incentive million way already we task investment will will investment Europe think are gave green that for with but already the a years this hydrogen, certain compared providing for of which the hydrogen, that are the in they electric -- is for we is produced, incentive Americas. the PTCs, next Europe making about making green electricity incentivating almost ITCs of kilo means Same with per I hydrogen In which green America giving is

all European the the is marginality good in I of is TTF gas gas, now it's point the of market So reflecting working my so the the reality gas that's not that countries properly think problem or Then cost the base are of point. is, the My of understood. more not European worldwide.

So they for something That's that looking this is moment, positive. are already, modifying. in

that the The the carbonization they head we they the the that understanding to of construction that future make avoid already this only than in means those, for to they crisis provide making and -- external problems incentive one, already Europe accelerate for making for be the moment like or are very of that. targeting targets way instead to that achieve And one and then and the state dependency to of penalizing self-sufficiency second like provide is that, the are thing, the diminish difficult continue one, renewables one can solution, is more or XXXX. they should last the the the

Ignacio Cuenca Arambarri

down rates, in question slow And be of will think higher question reflect you November. Xth plan Next to answered question PPAs rates? the do is, is, will Probably to second considering you London spike price renewable? the thing this to CapEx regarding this the do in in adjust on

Ignacio Galan

think, to long then best I to already agreements a we've way buyers the of a predicating stable have vendors between been bilateral market and in increase incentivate for is time already So, electricity. and PPAs,

seeing So the through have sold we United PPAs -- I most our think demand is, now countries the that is increase States, already electricity we are in what of an in already of Europe, instance, equivalent for like PPAs. the with globally.

the already these reflecting PPAs So -- new and situation. are

certainty, happen don't what and for as that But one agreement is we equipment CapEx XX much we and extended how labor, think, interest. already that, point is is inflation and very these can of sign PPAs, it's important we global I the more cost. is if the well it so toward have know to corporation. the in years for regulatory XX The -- think, in affecting the was, higher days. the XX making the next rate need There increasing years to already we -- going -- some I is to

avoid and to provide Certain, certainty the these spot this increase fixed are prices. more the already appetite -- customer this dependency time of need we to market already prices. one, to more So for is and fixed every

as but I country more clarity in the or same to -- stability, So States on Europe the is that which United like as need are incentives and thing one. insist they well. We doing in already Australia, PPAs promote

Ignacio Cuenca Arambarri

are there issues debt, projects? PPA one chains wind solar material we question have spread does regarding mean that wind onshore are then higher on IRR what On onshore or indications solar. higher and new it Next to for higher cost of renewables, Overall, costs, IRR side too. work prices supply raw and and

Ignacio Galan

So, I by analyzing are we case. think, case

what -- is have is mentioned that think true. I you

of certain, the So expensive if is is interest equipment higher. or the rate more

the cost. return think, linked think case-by-case see achieving already what the to one. that that But, is I are is we I affecting So are we on

different So, already to market think of our through VPAs the retail to through I access selling think from routes bilateral participating auctions fact network. I have in agreement we and

it's we those are we certain So, prudent will Capital the update all case-by-case. are But things in -- the already but to already next in that of Day. Market way how the much I very in looking investment

Ignacio Cuenca Arambarri

your capacity question, going you main down targets Any on addition think in its renewals the us for the Day. Next for XXXX? Capital reason probably given through there? are information I returns lower could Market some U.S. in by walk that Avangrid

answer we can now the So, to or move Q&A?

Ignacio Galan

will they Well, the question? mentioned think be one. -- as good that I what I think is on answered that you

tell you can I globally a in limitation countries. already is factor key all permit think the I

think will as so higher in pending we November I in as this well. megawatts is more in the the remember one. I previous details certain I provide then In far we one. we as in approvals focused already this think more on a of return are globally which few investment already we think the but I I on as in Xth months continue this And in already investment which states. less megawatt technology, offshore mentioned, -- moment high these of all But XX% already -- the the much nine So, have group, thousand in -- than we in have different nevertheless year

Ignacio Cuenca Arambarri

are XX. reference contract to? gas your What number Question

Ignacio Galan

I -- so -- are we I think exposure have first well the to thing gas Our reference to say gas. Russian that not

secured So, I we already power our through suppliers market. think is had forward plant

We perceiving of risk already are not delivery.

ones most gas tariff. are to of in as think know. those as related business I regulated think our leverage continue far we the our selling I customers mostly it's And market to I or

not So, for very it's very not much already perhaps you mention is in important much I can know nothing detail us. --

already we that not to gas to can this gas think But you but my I is pay case have information. -- provide message that contracts. feeling it's I I of or are So the the think mid think a is we my of Spain in contract related take

gas our So, case need selling. signed the of agreements I when case-by-case is buying we which of for we we already think gas. are we for the cycle linked one are combined have I think the In retail, that price to

position already at those to the are position So, having in but of already contracts is margin one. hedged already final which ones. Martinez we with under on customers some already are open not

Ignacio Cuenca Arambarri

WACC going probably but is as debt Markets question This I'm answered make Capital well be higher farm-down and the to of cost in will it. How Day, impacting valuations?

Ignacio Galan

the is what higher cost debt. So,

So, you reply Pepe.

Pepe Sainz

wants a there it probably of money higher will that infra valuations, is farm available true also lot but capital is think a bit cost it that is true of reduce down debt to deploy the time the is lot interest. in for being their a that capital the little that funds. I and And there of

interest are lot analyzing. a we downs that are We farm the of seeing for

expecting for we So assets. are still good prices these

Ignacio Galan

I used with And price our already certainly is thing rise have think CapEx that one. Pepe comparison can a are a I like point, a have that transaction, speaking of good million making with very, which you similar the it we our minority minority already one stakes when this one, in we capital give which we in on think the think very of But perhaps wind Germany, the gain already is in example account. seen the €XXX all not for something the any as already I for which last mentioned has in is this investment one. XX% farm I we

that to important helping our a capital these important is It's say, already that investment are fund divestment especially gains our already one. contemplating and -- to to projects. finding large we sharing is So already on risk not say way the of

Ignacio Cuenca Arambarri

and East whether environment CFD and situation. currency Is with case bid was for since Next question goes the the the to Iberdrola the XXXX regarding pound likely discount macro weaker project? is UK rates of higher the change the Anglia ahead X business May in

Ignacio Galan

Well, certain ahead. will go we

I is one the there. first certain think is

it year. Anglia awarded this So in case already X, was of the East

bought most been has I equipment already already the and of has one. all hedged on the think -- that of

there the I risk So think minimal. is

on financing I give details think perhaps you one. even Pepe we the that can have already secured already

So Anglia think it's say in a East quite the secure project, let's not well one, is I X have all which X. we the to matters. future Related the

we gigawatts. So one X.X what were other

with at if will prices cost we time think can we we next go market. this the the reality will apply that certain to through we auctions the the the according I of certain reflect

So Pepe like -- the but is this financial would with the hedged have -- we I East think structure. I for X, in add that for the Anglia But one closed anything on including already please? all you those project one -- think to moment

Pepe Sainz

No. Completely I agree from our financial.

Ignacio Galan

change And including. rate of

Pepe Sainz

what say. to going That was Yes. is I

We FX have forward-hedged. at most all the of funding hedged the also the is supplies and

Ignacio Cuenca Arambarri

consider and amount the are it. question some and which comment lower? going European proposition but the I'm tilting towards government, would some to by cases risk Next has its Iberdrola irrational where analysts, regulatory can to In returns personal in behavior better this time of to do response some US Brazil CapEx

Ignacio Galan

Day is question on to on the that the Investor going be think Xth. replied I Well,

invest what helping one. the on to our see more mix our to plan investment investment uncertainty not of this what You is decision. is we But

Ignacio Cuenca Arambarri

to financial Iberdrola? Next on moving Spanish us, are gas to is question regarding impact customer tariff the regulated

Ignacio Galan

Spain. many in is the in our very, tariff, but we I don't liberalized think already have gas in let's say very are we I customers few. the irrelevant one, is So on know how regulated business

I public ones. are to a by in one case, some funds certainly number think those not be this are I covered think what minimize will for So relevant to the think have one, But it's business. trying have effects. any those we I it's In going we but we another on

Ignacio Cuenca Arambarri

Okay.

is, revenues question you tax? may introduce Spanish fight government the How do X.X% can you Next believe it? legally a

Ignacio Galan

Well, shareholders, the don't will the we going I go already if do know to what but already is we think the done applied, court. the now already is we certainly is to finally in defend it have always see, interest that will as parliament. of We we to happen,

then stating the European that case it for The a goes clearly case think profits directives Spain. is I the is in for extra European that against of is which not tax directives. the

feel think being by Saying is in we I not so work profit, defending think is I our about very, for addressed interest the I revenues. new. see But we of And which lawyers to shareholders everybody talking that have well European what our try is which always something already not I'm talking the best. about already do to it's as we not line will Commission. very that, think extra with our

I think we are doing our best.

€X.X already for Spain think Spain. already and the €X.X are which more present, to €X.X country vulnerable. billion is already in taxes billion And those paying more I billion with helping in my half lot than we money point paid in at is they we are this pay a

in this well thing why think this particular I'm we on paying because one taxation seeing well that not very -- So on the moment. this I I extra are reason one think

Ignacio Cuenca Arambarri

Next with looks you you on definition question a S&P XX% Could for looks threshold one-off is rating? the you at? slides. provide current comfortable in out to ratio credit are your the your information showing FFO S&P Are like-for-like of XX.X% debt that

Ignacio Galan

Pepe?

Pepe Sainz

this that from cash that of the range. is equivalent range XX% is XX.X% point gives we There have are in the year we me and But the flow XX.X%. The let S&P at Yeah. BBB+ the S&P difference improving to recognition. that for it is Today, for top last XX%. range are we a in year of XX.X% the

very are we with ratio. comfortable So very, this

Ignacio Cuenca Arambarri

sector regarding or gas Last Spain. industry gas the the in question

in gas supply be your activity Spain. to Is this seem discontinuing correct? view You

Ignacio Galan

ago of all a that know sold I we So years you few gas. our contracts think take-or-pay all

So has already I contracts. let's as of say collateral this not other because risk type think have have in already we we colleagues similar not so

the minimal. And is electricity. buying we us I cycle gas our we was for for in of gas when is we case ready just of combined need as already already generating gas Spain are to mentioned, So using the are

So -- are we I focusing we as think as but on renewable. focused we are are insistent electricity

are We focusing network.

activity. very worldwide. marginal case And of is Europe the and is So second in that gas already renewable is business the is networks

Ignacio Cuenca Arambarri

Okay.

the give to this Mr. now to floor event. me let please conclude Galan Now

Ignacio Galan

very part any you our we may to Investor next of will taking already require. always London be be on thank call. and will as Day I for the conference people can share that investor you Investor again So much for Relations available few like In Day case, information November invite it you in think X you our of attending I projection our Capital with would for to further remind years. Market this the

thank So soon in and Thank you. London. see very much you you

Iberdrola (IBDSF) 26 Oct 222022 Q3 Earnings call transcript