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Presentacion de la Junta General de Accionistas 2011, en ingles
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Ignacio S. GalánReport by
Chairman & CEO
A key year for the optimisation of the Iberdrola Group
Highest Net Profit in history: Eur 2,871 M
Milestones in 2010
Record output
Increase in efficiency
Adequate regulatory management
Increase in financial strength
Optimisation of business portfolio
Elektro acquisition (Brazil)
2
Success of the Scrip Dividend programme(“Flexible Dividend”)
68% of shareholders opted for collection in shares
Milestones in 2010
Return1
+5%Cash collection
New shares +8%2
31 Data as of May 24th 2011.2 Includes tax saving and rise in price of new shares
4
Annual dividend growth1
(Eur M)
Total shareholder return since 20003
1 Dividend paid corresponding to the referred year. Includes attendance bonus.2 Pending approval at the GSM.3 Source: Bloomberg as of 12-31-2010
Milestones in 2010
Over Eur 10,000 M in dividends paid
along the last 10 years
2000 2010
485
1,8302
3.8x143%
52%
IBERDROLA
EuroStoxxUtilities
-18%EuroStoxx 50
51%IBEX 35
Iberdrola Tower, the Company's head office (Bilbao)5
Economic and regulatory environment 2010
5
Electricity demand recovering...
Economic and regulatory environment 2010
Brazil Spain Mexico UK
USA
+8.1%
+3.3% +3%
+0.1%
-1.9%
Electricity demand in 2010
6
... in a context of uneven economic recuperation
Regulatory milestones in Spain:
Economic and regulatory environment 2010
New remuneration framework for Distribution Networks
Royal Decree-Law 14/2010 - Solution to the tariff deficit
Deficit Securitisation Fund Issues
Report by the Congress Sub-Committee: Spanish Energy
Strategy for the next 25 years
Sustainable Economy Act
7
Regulatory milestones in the United Kingdom:
Economic and regulatory environment 2010
New remuneration framework for Distribution Networks
8
Provides stability until March 2015
Links remuneration to investments and quality of service
Regulatory milestones in the United States:
Economic and regulatory environment 2010
New electricity and gas rates in New York
Approval of a transmission line linking the US and Canada
Extension of the begin construction date
for new wind farms
9
Dillon wind farm in California (USA)
2010 Results
10
Record output of 154,000 GWh...
... thanks to emission-free energies
FY 2010
2009
143,000
2010
154,000+8%
Output (GWh)
11
Installed capacity of 45,000 MW...
… 57% of which is emission-free
FY 2010
Hydroelectric 22%
Wind28 %
Nuclear7%
Gas32%
Coal10%
Fuel-oil1%
Capacity breakdown by technology
12
Energy distributed increased by 2.4%...
FY 2010
2009
198,000
2010
203,000+2.4%
Energy Distributed (GWh)
13
...improving quality of servicein all our markets
Highest Net Sales ever recorded,exceeding Eur 30,000 M
2009
25.891
2010
30.431+17.5%
Net Sales (Eur M)
14
FY 2010
Enhanced operating efficiency (+11%)...
... driven by cost savings at Iberdrola USAand the optimisation of corporate structure
2009
3,590
2010
3,456-3.7%
Net Operating Expenses (Eur M)
15
FY 2010
Gross Operating Profit rose by 10.5% to Eur 7,528 M
Only 38% of EBITDA is generated bythe Traditional Business in Spain
Energy Spain99%
Latam1%
USA10%
UK18%
Energy Spain(ex-Renewables)
38%
Latam 12%
Renewable energy19%
Other3%
16
FY 2010
EBITDA 2000 EBITDA 2010
3.8x
Recurring Net Profit rose by 5.6% to Eur 2,582 M...
…and Net Profit amounted to Eur 2,871 M17
Net Profit (Eur M)
2,824 2,871
2009 2010
Recurring2,4462,582+5.6%
289Non-recurring
378
FY 2010
Strict control of financial resources
After investing Eur 5,674 M in the core business:
18
11.3% increase in operating cash flow to Eur 5,468 M
Reduction in debtof Eur 700 M
Increase in Equityto Eur 31,600 M
Leverage of 43.3%,the lowest rate in the last
10 years
FY 2010
Total Remuneration proposal...
* Purchase price of rights corresponding to December Flexible Dividend programme** Pending approval at the GSM
€0.146/share
€0.03/share (cash)
€0.326/share
Interim dividend*:
Final dividend**:
Total remuneration
19
... reaches Eur 0.331 including attendance bonus
€0.15/share (flexible dividend)
FY 2010
Over 1 M hours of training
FY 2010
Participation of 95% of employees20
Investing almost Eur 130 M in innovation
Tidal energy project in Scotland and Northern Ireland
Smart meters in Maine
Electric vehicle
21
FY 2010
Iberdrola, committed to society and people
FY 2010
Creation of a Corporate Social Responsibility Committee within
the Board of Directors
Iberdrola Foundation:
Scholarship programme in Spain and the U.K.
22
Year 2010
23
A great team of over 33,000 people
Combined cycle plant in Mesaieed (Qatar)
Agreements
24
Merger with Iberdrola Renovables
Agreements
Maintains Iberdrola Group's commitment toglobal leadership in clean energy
Unlocks the value of this company's assets
Facilitates access to capital markets
Provides organisational synergies
25
Amendments to the By-Laws and the Regulations for the General Shareholders' Meeting and the Board of Directors
Agreements
Continuous improvement of the Corporate
Governance System
Compliance with, and implementation of,
international recommendations and best practices
Protection of the corporate interest
Encouragement of shareholder participation at the
Shareholders' Meetings and a responsible exercise of
their rights
26
Aldeadávila hydroelectric plant (Salamanca)
Conclusions
27
Commitment to sustainable growth, benefiting:
Conclusions
Shareholders
Suppliers
Society
Customers
Employees
28
