Industry positioning

The strategy that Iberdrola has implemented since the beginning of 2000s, which wagered
for the decarbonisation and renewable energies, supported by a strong direction towards
innovation of all group’s businesses has made possible a rapid adoption of new generation
technology, as well as the automatization and remote control of networks. As a result,
nowadays Iberdrola is positioned as a leader in renewable energies and smart grid, activities
that constitute the backbone of the decarbonisation of the electricity sector.

Iberdrola responds to the expectations and needs described in the previous page. The
process of electrification is supported by all group’s businesses and the decarbonisation is
promoted through the investment in emission-free capacity installed, which has already
reached 68,2% of the total.

In 2018, stands out the conclusion of the Star network digitization project; the inauguration of
Wikinger offshore wind farm; the promotion the electric mobility through their Smart Mobility
plan, in which Iberdrola will install 25,000 electric vehicle charging points in Spain by 2021;
and the development of customer solutions based on connectivity.

Economic / Financial positioning

Along with the industrial and technological positioning, economic-financial aspects are an
essential part of Iberdrola’s business model. The company engages a strategy which
purpose is to balance the growth, the financial strength and a sustainable dividend. To this
end:
● Investment focuses on regulated or long term contracts, which provide recurring and
known cash flows.
● Country selection takes into account the quality of their institutions and specially the
regulatory environment that applies to the sector.
● The commitment to the group’s level of solvency is public and has a determinant
influence on long-term planification and in the group’s leverage level.
● The dividend policy is oriented towards a secure and growing in line dividend with the
increase in the company results.