Thank you very much, Ignacio. Good morning, everyone, and thank you very much for joining today's conference call.

In the first half 2026, reported net profit increased by 22%, reaching €4,336 million, and adjusted net profit up 8% to €3,565 million, reflecting a strong operating performance up to June. Adjusted EBITDA rose by 7% to more than €8 billion, driven by Networks, up 13%, due to tariff increases and higher asset base in all geographies.

Adjusted EBITDA in Power and Customer increased 1% due to higher production and margin, especially in the second quarter, and the contribution of pumped storage, which already accounts 35% in our total hydro generation. Investment rose by 25% to more than €7 billion, with 72% located in UK, the US, and Brazil, including the acquisition of Neoenergia minorities.

Networks accounted for two-thirds of the total investment, driving 11% increase in our regulated asset base to €55 billion. In Power and Customers, up to June, we have commissioned 1,600 additional megawatts, and we are accelerating the addition of new capacity due to increasing demand across our geographies, especially in US.

This is also driving governments and regulators to approve new framework to guarantee the availability and sufficient power and the reliability of transmission and distribution networks. In Europe, in the last week, the Commission has published the Grids package to increase network investment as well as several initiatives to reduce taxation on electricity and a new electrification action plan with very ambitious targets to double electrification rates.

The UK also continues showing full commitment to electrification with increasing visibility on the need of additional investment in transmission and distribution supported by attractive remuneration schemes. Finally, in Brazil, the renewal of distribution concession for 30 more years was signed, reaffirming the country's attractive regulatory outlook for the coming years and supporting our recent acquisition of Neoenergia minorities for €1.1 billion, as mentioned.

In this context, our increasing investment during the first half, we have also continued preserving our financial strength with an FFO to adjusted net debt ratio of 22.4% and a liquidity of more than €21 billion. As yesterday we announced the acquisition of Caruna Networks, the largest electricity distribution company in Finland, with an enterprise value of €5 billion.

Under the agreement, we will acquire 80% of the equity of Caruna for €2 billion, which €1 billion will be paid in 30 months, and the remaining 20% [billion?] stake will continue in hands of two Nordic investment and pension funds.

Caruna operates two distribution areas with major activities around Helsinki, the [unclear] area in Finland, and Joensuu. In total, Caruna has 89,000 km of line, almost 70% underground.

The transaction, that we expect to close in the first quarter 2027, perfectly fits our strategic focus on regulated networks. With the recent divestment of our remaining Mexican power plant, we will be exchanging thermal generation for fully regulated company with an asset base of €2.5 billion that serves more than 20% of the electricity distribution in Finland, a country with AA+ rating in eurozone, with a stable regulation and a strong demand growth prospect, given the ambitious electrification target set by the government to reinforce energy security and sufficiency.

As a result, Finland system operator estimate demand growth between 22% and 40% up to 2030, which will require strong increase in generation. For instance, the system operator estimate the wind capacity will multiply by more than 3 times in the next 10 years, reaching 30 GW by 2035.

To secure the network investment required to support this growth, Finland has set a stable and predictable regulatory framework for electricity distribution until 2031 with attractive condition, including an average return on equity around 8%, 100 basis points, to give you an example, above Spain. The transaction will also have positive impact in our result and growth prospect.

It will be accretive from the day one, and we expect a sustained long-term growth of around 7% per annum in the net income, thanks to additional investment up to between €200 and €300 million per annum, with further upside due to electrification, the expansion of data centers, and the possibility to develop 400 kV transmission lines opened by the Finnish regulator earlier this year. Finally, given its size, its regulatory profile with supportive framework, and its cash flow generation, there is more than enough headroom for this transaction in our current credit ratios.

All in all, this deal is an excellent opportunity to accelerate the execution of our strategy by increasing our exposure to regulated networks in a country with a high rating, attractive regulation, and significant growth prospect. Coming to the numbers of the presentation: adjusted EBITDA increased by 7% to €8,050 million, supported by a stronger performance in the second quarter compared to the first quarter.

Networks adjusted EBITDA reached €4.2 billion in the first half, up 13% compared to 9% increase registered in the first quarter. In Power and Customer, registering in adjusted EBITDA of €3,800 million, up 1% year-on-year, driven by a positive dynamics in the second quarter.

By geography, in the UK, EBITDA rose by 14%, supported by the higher contribution of transmission following the beginning of RIIO-T3, as well as the strong increase in production, up to 27%, thanks to the onshore and offshore wind. In the US, excluding the one-off impact of network past cost recognition in 2025, EBITDA increased by 6%, thanks to a higher rate in New York and Connecticut and the contribution of the NECEC interconnection line between Massachusetts and Canada.

In Brazil, EBITDA grew by 19%, driven by a tariff increases in distribution and the new transmission line in operation, as well as the good performance of Power and Customers. In Spain, EBITDA is up by 2%, thanks to a strong hydro output, mainly from pumped storage, which has allowed us to increase production and maintain our reservoirs close to record level of 73% of the total capacity, equivalent to 8,300 GWh of energy stored.

Finally, the EBITDA in other European countries and Australia was affected by the impact of ancillary service costs in Portugal and the sale of our onshore activities in Hungary and France, despite an overall 2% increase in production, mainly offshore in Germany and France. All in all, 83% of our EBITDA comes from A-rated countries.

Regarding FX evolution, the depreciation of the dollar and the pound against the euro has a negative impact of €106 million as of June on our operating result. This means that excluding this effect, the increase in EBITDA would have reached 9%.

Investment in the first 6 months were up 25% to €7 billion, with 72% in the UK, the US, and Brazil. 30% of the total investment were made in UK, mainly transmission and distribution networks, 17% in the US, with increasing investment in distribution and offshore renewables offsetting the completion of NECEC and Vineyard Wind 1 projects, and 25% in Brazil, including the acquisition of Neoenergia minorities.

Spain represented 14% of the total investment, and Australia, other EU countries remaining 13%. By businesses, Networks continued to be our main investment destination, accounting for nearly two-thirds of the total, to reach €4.4 billion, up to 42% year-on-year, mainly driven by UK, which represent one-third of the total network investment after 43% increase driven by transmission.

The US account by 22% of the total as ongoing investment in distribution partially offset the impact of NECEC project once completed. The contribution of Brazil reached 40%, including €1.1 billion due to the acquisition of Neoenergia minorities, as mentioned, and Spain represent 7% of the total investment.

As a result, our regulated asset base rose by 11% year-on-year to €55 billion, thanks to the double-digit increase registered in the UK, US, and especially Brazil, where RAB rose by 18%. Transmission was once again the key growth driver, with RAB up 30% in just 1 year, driven by RIIO-T3 in the UK, NECEC in the US, and the completion of the last transmission lots in Brazil.

Distribution RAB increased by 6% to €40 billion, well spread among geographies. Investment in renewables reached €2,234 million, with 72% allocated in wind, including €700 million in offshore mainly in East Anglia TWO and THREE in the UK, Windanker in Germany, and Vineyard Wind 1 in the US, and more than €900 million on onshore wind, mainly in the other European countries and Australia.

We also invested around €330 million in solar PV and €300 million in storage and others. All in all, up to June, we have put in service 1,600 MW, and we expect to accelerate the additions of capacity from the second half of the year, supported by the demand growth and the strong appetite for PPAs.

As a result, by the year-end, we will install 2.1 GW, more than 50% East Anglia THREE offshore wind farm in the UK, and we have another 2.2 GW already under construction, two-thirds in US and UK, plus 3 GW more ready for final investment decision in the coming months, half of them in the United States, mainly corresponding to repowering and life extension, and another 4 GW in advanced development that could be ready by the end of the decade. This means that capacity additions by 2030 can reach up to 15.5 GW, significant uplift versus 9.5 GW between 2025-2028 included in our plan.

This increasing trend in investment is all being reinforced by governments and regulators, who are taking additional measures to secure the availability of power and the reliability of network infrastructures, to obtain all the benefit of electrification in terms of energy security, self-sufficiency, and competitiveness. European Union, only in the last few weeks, the Commission has published an ambitious Grid package to increase networks investment through faster permitting and additional incentives, and electrification action plan, which sets a specifically electrification target of 42% by 2040, doubling current levels in just 15 years, which could also mean multiplying total demand by 2 in the period.

The plan announces measures to incentivize heat pumps, electric vehicles, and charging infrastructures, and propose the elimination of subsidies to fossil fuels and a strong reduction of taxation on electricity, in line with several Commission recommendations recently published. In the United Kingdom, RIIO-T3 continues progressing as scheduled, with Ofgem framework decision already published, and the independent system operator has issued an updated plan beyond 2030, showing that network investment will continue to increase strongly in the next decade.

In Brazil, following the renewal concession for 30 more years, Neoenergia doubled its investment plan in distribution the next 5 years to 50 billion reais, which represent €9 billion, mainly in Bahia, where a few weeks ago I could see personally a huge increase in power demand driven by the electrification of the western part of the state and the industrialization of agriculture and other sectors. In the US, new rate case progress as expected.

For example, in New York, where the regulator recently approved $2.2 billion investment for this year and confirmed the new tariffs, which we expect to close by year-end, will have retroactive effects in May. In Australia, we continue to see full support to electrification from federal and state authorities, as reflected in new auctions in generation, storage, and transmission.

In terms of financial profile, our FFO net debt ratio reached 22.4%, and net debt-to-EBITDA is 3.5 times, fully compliant with our BBB+ rating. Our liquidity stand at €21.5 billion, covering 20 months of financial needs.

As our last AGM approved a dividend per share corresponding to 2025 results of €0.685, equivalent to total dividend payment of €4.5 billion, 12% more than previous year. Accordingly, next Monday, we will pay €0.427 per share as supplementary dividend.

The average vote received in AGM was 97.9%, with a quorum of 73.6%. Let me also thank you, all our shareholders, once again for their participation and support.

Now, you, Pepe, explain the results in more detail. Thank you.

Thank you very much, Chairman. Good morning to everybody.

The first half reported net profit grew 22% to €4,336 million, and the adjusted net profit grew 8% to €3,565 million, supported by a 7% increase in adjusted EBITDA to €8 billion. Since last year, the dollar has depreciated 6.8% against the euro, the pound 3.1%, while the real appreciated 4.6%.

As a consequence, FX has had a negative impact on the P&L. Excluding it, as the Chairman has commented, adjusted EBITDA growth would have reached 9% and adjusted net profit growth 14%.

The adjustments to the reported P&L, which are limited and aligned with our guidance definitions, are the following. First, regarding Mexico, in accordance with IFRS 5, Mexico is classified as discontinued operations.

Therefore, its contribution is excluded from EBITDA in both reported and adjusted results. At the net profit level, Mexico is presented under discontinued operations in the reported accounts, while in the adjusted figures it is reflected on the equity line.

As a consequence, in the second quarter, we have excluded the positive capital gain of €950 million from the sale of the remaining business to Cox, which is the main driver of the difference between reported and adjusted net profit. Second, as usual, UK capital allowances are adjusted at net profit level in '25 and '26.

Finally, US past cost recognition in '25 is excluded from the adjusted net profit of that year, €530 million gross, €389 million net, in line with the definition applied in our '25 guidance. You can find all these effects explained in more detail in the annex on slides 32, 33, and 34.

Adjusted revenues increased 4.2% after adjusting the recovery of US past costs in the first half of '25. Procurements rose by 4.8%.

This resulted in a 4% increase in adjusted gross margin, improving the 1% decrease reported in March. Excluding the negative FX impact, €220 million, adjusted gross margin would have grown 6%.

First half net operating expenses are 1% lower year-on-year and 1% higher excluding the FX impact of €71 million. ENW is included for the whole first semester versus last year that was accounted from March onwards.

Net personal expenses increased 7.7% as the second quarter of '25 included some positive non-recurring impacts. External services grew 2.6%, and other operating income improved by 40%.

Analyzing the Network business, its adjusted EBITDA grew 13% to €4,213 million, driven by a strong performance in all geographies due to higher asset base, especially in the US, the UK, and Brazil. Excluding also €53 million FX impact, adjusted EBITDA would have grown 14%.

These investments in networks are making electricity available for households and industries, which is critical for the future of the economy and the energy independence. In the US, IFRS adjusted EBITDA increased 19% to $1.2 billion, excluding the $550 million past cost recognition booked in the first half of '25 included in the reported figures.

Underlying performance benefited from higher rates in distribution and a stronger contribution from transmission, including NECEC following January COD. In the UK, EBITDA increased 24% to £924 million with increasing contribution from transmission, driven by the new RIIO-T3 framework in place from April '26 onwards, and higher contribution from ENW versus last year as consolidation started in March '25, while in '26 is consolidated for the whole first half.

In Brazil, EBITDA grew 7.1% to 7.2 billion Brazilian reais, improving from the 0.7% decline reported in March, driven by higher revenues in distribution due to better tariffs and demand, together with a higher contribution from transmission. In Spain, EBITDA increased 7% to €254 million, driven by the new regulatory framework and adjustments from past years.

First half '26 Power and Customer business EBITDA reached €3.8 billion and grew 1%, improving 3% fall at March, thanks to Spain and the US. During the semester, Iberdrola produced 61 TWh of electricity with a 92% sourced locally and fully emission-free, advancing in the energy self-sufficiency while strengthening the availability and the reliability of supply.

This demonstrates the importance of combining local generation and robust networks to provide the secure, resilient, and competitive energy system needed by the new economy. In Iberia, EBITDA was €1.9 billion and grew 1.5%, improving the 3.2% fall in March, with higher electricity sales and margins in Q2 more than compensating the lower prices, higher ancillary costs, and the negative contribution of the regulated gas rate.

As of June 30, Iberdrola had 8.3 TWh hydro reserves. Pumping represented 35% of hydro production and should continue to help the results in the second half of the year.

In the UK, EBITDA increased 11.9% to £774 million, thanks to higher wind resources, both on onshore and offshore, more than compensating lower prices. The Supply division had a positive contribution despite the smart meter sale.

In the US, EBITDA increased 3.5%, reversing the decline reported in March, to $525 million, with higher contribution from wind and solar assets, with stronger prices and output more than offsetting the negative timing effect versus '25. In the Rest of the World, EBITDA decreased 18% to €337 million, affected by the sale of Hungary and France, lower power prices, and higher ancillary services costs in Portugal.

In Brazil, EBITDA increased to 661 million reais with higher contribution from the client business partially offset by lower renewable contribution. Depreciation and amortization and provisions grew 2%, reaching to €2,824 million.

The evolution was mainly driven by the larger asset base and provisions. Adjusted EBIT grew 10%, improving from a 1% decline at March, reaching €5,226 million.

Excluding the €52 million adverse FX impact, growth would have reached 12%. Net financial results increased by €508 million to -€1.1 billion, mainly driven by the negative derivative impacts, especially in the second quarter, reflecting the Q2 '25 East Anglia THREE positive one-off of €282 million and FX hedges linked to exchange rates, as they were positive in '25 and negative this year.

All of this is despite the €2.8 billion lower average debt. Debt costs increased 44 basis points, mainly reflecting higher interest rates and higher percentage of debt in Brazilian reais, which is linked to inflation, compensated at EBITDA level as revenues in Neo are inflation-adjusted.

Excluding the real, debt cost fell 3 basis points to 3.5%. Net debt increased €3.8 billion versus full year '25 to €54 billion, mainly reflecting higher replacement and currency appreciation.

The evolution also reflects the strong effort in capex, including the €1.1 billion acquisition Neo minority shareholders in Q2, partly offset by FFO generation and asset rotation proceeds. Iberdrola maintains strong and resilient credit metrics, fully supportive of our BBB+/Baa1 rating.

This financial strength allows the group to continue investing while preserving balance sheet flexibility. Our adjusted net debt to EBITDA remained at 3.5 times.

The adjusted FFO versus adjusted net debt reached 22.4%, and our adjusted leverage ratio was 45.3%, improving the 46.8% in the first half of '25. First half '26 adjusted net profit grew by 8% to €3,565 million, compared to the €3,308 million in adjusted net profit in the first half of '25.

Excluding the €190 million FX impact, adjusted net profit would have grown by 14%, while reported net profit grew 22%. The difference versus adjusted net profit is mainly explained by the €1 billion capital gain from the Mexico transaction recognized in Q2, partially offset by capital allowances in the UK.

Neo minority shareholder purchases had added €164 million to the net profit. Now the Chairman will conclude the presentation.

Thank you.

Thank you, Pepe. To conclude, the strong performance of the first half and the very good prospects for the next 6 months reinforce our positive outlook for the year.

As of June, all our businesses has a positive evolution, especially in the second quarter, with Networks EBITDA growing 13%, thanks to a higher regulated asset base and tariff increase in all geographies, and Power and Customer EBITDA is already up year-on-year, thanks to 3.5 GW added in the last 12 months, higher production, and the contribution from pumped storage. We expect this strong trend will continue the second half of the year, driven by a further increase in our regulated asset base in Networks, mainly in transmission, the positive impact of new regulatory framework like RIIO-T3 in the UK, and the full contribution of Neoenergia at net profit level after the acquisition of minorities.

In Power and Customers, we expect to have 2.1 new GW before year-end, and hydro reserves are still close to record levels. On top of that, 100% of our expected energy is already sold, and we continue optimizing our margin through pumped storage.

We will also benefit from additional operating efficiencies and ongoing improvement in business processes due to artificial intelligence, as well as from more favorable evolution of foreign exchange. All in all, this allow us to comfortably reaffirm our guidance of growth above 8% in adjusted net profit in 2026.

If the positive trends of the second quarter continue in the coming months, we could give you some good news after summer. As we have shown today, we are already working to continue exceeding our outlook for coming years, thanks to the acceleration of organic investment in Networks in the US, the UK, or Brazil, and in Power, mainly the US, additional efficiency gains and process improvement linked to artificial intelligence, as well as the integration of Caruna announced yesterday, will reinforce our network profile in a AA+ rated country in the eurozone with attractive regulation and strong growth prospect.

The transaction follows the same rationale that we have already applied in the last 25 years as long-term industrial investors, and we have always demonstrated our capacity to materialize our value creation expectation. Now, we will be more than happy to answer your question you may have.

Thank you.

I think is perhaps the first one is business drivers. Networks has a higher RAB in all countries.

We have strong performance in the UK, in the US, and Brazil. In the UK, we have higher contribution from Electricity North West, consolidated in March 2025; increasing contribution from transmission, start the RIIO-T3 in April; in the US, higher rates, contribution of NECEC interconnection between Canada and Massachusetts from January; and in Brazil, increasing revenues in distribution due to better tariff and a higher contribution from transmission after finalizing all lots and the recent revision of rates as well.

Power, higher production in the UK, US, and European countries, and we expect this trend to continue the rest of the year. In Iberia, we have strong hydro production, especially in pumped storage, already as Pepe mentioned represents close to 35% of our total production, with an improvement in margins; positive impact of the 100% acquisition of Neoenergia.

That makes the adjusted net profit 8%, or 14% excluding FX impact. As I was mentioned, if the trend continues, perhaps after the summer, we can give even better news for you.

I think is same thing I mentioned. I think we expect positive dynamics in second quarter that will continue the rest of the year.

In Network, the regulated asset base continue increasing; new frameworks with better rates in RIIO-T3 from April; better tariff for all countries; additional contribution for Neoenergia full year. In Power, we have installed 1.6 GW during the first half of the year; we put an additional 2.1 GW in operation before the year-end; 100% of the energy is sold; hydro reserves are at the record levels, as Pepe mentioned, 8.3 TWh; improved margins due to the pumped hydro, the volatility of the price helped to us; improving FX, we expect improving FX dynamics after the negative impact recorded in the first half; and additional operating efficiencies, as was mentioned.

That why I continue repeating that we are comfortable reaffirming our guidance for more than 8% growth in net profit. I think if these positive trends of the second quarter continue in the coming months, we could give you some good news after summer.

This transaction follows the same rationale as the acquisition of other network companies like ScottishPower, Energy East in US, or Elektro in Brazil. We are a long-term industrial investor.

We are not already an speculative investors. We see opportunities that probably another one are not seen.

As we have demonstrated and these opportunities we are seen, we are able to materialize. As it already happened in cases like in UK, as you see the good results, or US, or Brazil.

Additionally, we are financing this transaction with the funds and the capital gains obtained from the sale of our thermal generation in Mexico. We are changing money from one country to another one, a country in power generation, fossil power generation, into clean networks operation regulated.

The transaction as well will be accretive since the day one, which I think is not normal in this type of transaction. The company expect net profit to increase by 7% per annum, given the predictable regulatory framework and the investment plan up to 2031.

Overall, I think that is a relatively small transaction compared with our organic investment. I think we are investing on the range of €14-€15 billion per annum, I think that represents less than €5 billion, which I think is relatively small compared with the rest.

Pepe, you reply that one?

Yeah. I think it's quite simple, no?

Caruna has a net income, and after the net income that we are expecting that to be around €150 million in '27, after that net income, it pays a shareholder loan. Now with the acquisition that we do, especially of the 80%, that shareholder loan will disappear, no?

It will be a net income, we will have the 80% of the net income. After the shareholder loan, what you are seeing is a net income, but we are looking to the net income, which is corresponds to the equity that we are putting there, and that is what justifies the 16 times that we are paying.

I think is that is

Okay. I think we are progressing in the implementation of the initiative we already presented you, as well as on others.

There are around 300 projects in this moment in production, at final development stage. We have another 150 projects progressing.

We are training now thousand of people, probably more than 4,000, and we expect that the value of all this initiative will be measured in the hundreds of millions. You will see that one in the next month.

I think is that is going on.

You ask for

Okay. See, I know this, yes.

We are already better than our plan in terms of investment and results. Just to give you a few example, in the UK, RIIO-T3 final determination it was better than planned, expected, with higher totex, £12.1 billion, with a better return and faster cash flow recovery.

In the US, the higher demand is driving additional investment in infrastructures, for instance, we are already in this moment in transmission with the project of Power New York, which is a project with includes a $4.2 billion capex. In generation in United States, repowering, life extension, our plan includes around 2,000 new MW in 2025-2028, but we have already installed 1,400.

We have another 800 under construction, 550 more we will be installing in 2028. That means that is 30% more above our plan in the US.

On top of that, we have another close to 1,800 MW project which being installed by 2030, in which we are signing PPAs with higher prices and longer duration. Finally in Brazil, the fact that the renewal of concession, we had already committed to make investment of 50 billion reais, which is around €9 billion, which is nearly doubling investment we make in the last 5 years with a very attractive returns.

In any case, I think is we are working in review our long-term plan, and we will advise and we will share you the information in next Capital Markets Day that will take place next year as usual. Next is

Andy Burnham is not new for us. As we know him from his times as mayor of Greater Manchester, where we have the distribution service area, and we have already worked very well with his team.

I think the key priorities announced by Andy Burnham are absolutely aligned with our plans. The fact, yesterday, the government already announced the elimination VAT on electricity and not in gas, which I think that is what the European Union is saying and that is what we've been claiming for years.

If you would like to electrify, we have already make the things in a manner more attractive. We need already availability, reliability, but affordability, the key thing for affordability is precisely tax reduction of electricity.

That is what they're doing. We are aligned very much with our plan, and I think we knows well his team, and I think we have already worked very well from our position as distributor in the Manchester area, where he was already the mayor in the last few years.

Next question is

As we are the largest electricity distributor in Brazil and the leading investor in the Brazilian sector. I mentioned before I was a month ago in the western part of Bahia with the Minister of Energy, with the Vice President of the government, with the Minister of Agriculture and others, for announcing precisely this extension of the concessions of different places.

I think the Minister was already very positive, and the trends and ambition of the country to electrify areas with now they are not enough electrified. That other areas, certainly, is this booming area of Bahia, as I said, and others, but I think that was in Bahia, in the western part of Bahia.

I think the trend of this capex will continue, the electricity will continue, and that's allow us to double the level of investment we've been making up to now. As the returns they are quite very attractive with ROEs on the high two digits and very positive regulatory framework, very stable, very predictable, with rules that we knows very well from the more than 20 years we have present in the country.

We are not changed our positions since the day one. As I mentioned anytime, I am an electrical engineer, and I can tell you the blackout was the result of inadequate planning.

Management and operation of the electricity system by Red Eléctrica was not adequate one, with a lack of synchronous units programmed despite the fact they were available. I think I cannot understand the blackout if there are not power available.

If there are 4 times more power available than that what is needed, it's difficult to be understood. The only reason is the system operator has not either planned properly or has not managed properly during the day.

Our position is I think that is the position has been taken by all report, investigation, audios, etc., etc. The fact, and I think that is very clear, after the blackout, Red Eléctrica has decided to modify his system operation to program more synchronous units.

I think that's very clear. What I was saying from the day one now is being applied.

There another thing as well, with the CNMC, the regulator has published a report last May pointed that exists a conflict between the role of transmission network operator, which is a listed company, and that may overestimate infrastructure needs or prioritize investment with a higher expected return, and the role of the system operator, which must ensure the minimization of the available resources, focusing security of supply. I think that is not my word, that is the CNMC, the regulator, has already talking about this conflict in between transmission owner and system operator, which are two different things.

This role, as the fact, is separating in other jurisdiction where do we have already presence, like United States, UK, or Brazil. I'm sure that probably that had not been together, probably what we are talking about we will be in a different situation.

As I mentioned, we are investing in US more than initially planned, driven by the increase in demand and the good condition of the PPA markets. As I mentioned, Pedro, you can already reply the details of that one.

More than 800, I think, megawatt in construction, but you can already

Yes, I think we have more than 800 MW right now under construction, and we expect more than 2,200 MW that could be operating by the end of 2030. This means more than doubling our plans in the US.

Many of these projects are related to life extension or repowering, which have attractive economics and reduce complexity during construction, permitting, etc. I think we're building a strong portfolio beyond 2030 that will be explained later.

Some competitors are talking about increased capacity in the US. In our case, I can assure, and I think that's the work we're doing, that all our projects are real, with supply chain secured, including turbines or solar panels, we do not need to buy projects from third parties.

I would like to say that we are in usual negotiation processes that will probably continue until the year-end or beginning of next year. As I mentioned already, for instance, New York, we already agree with the regulator the level of investment and the new tariffs will be retroactive to May, as we had already done in the past, and we will continue negotiating the rest of the terms.

I think that is the normal way how we work. I think we work, we negotiate, and whatever things we agree is has to be retroactive from the date with another rate cases part.

We started 25 years ago investing massively in storage. I think I remember 2001 when we presented our first business plan, I was saying that we plan to make at that time a few thousand megawatt of 4,000, if I don't remember bad, of renewable, I think mostly in wind, and we said that renewables are intermittent, is needed storage for storing the excess of electricity when they are not in a demand and for providing this electricity when that is needed.

That makes ourselves to transform most of our hydroelectric power plants in reversible. The fact today, we have 4,400 MW of hydro pumping storage with a capacity between 20 and 100 hours each of those, which makes a total capacity storage on the range of 120,000 MWh, which is a huge capacity.

Also, I think we are investing in batteries. As I think I'm coming from the sector of batteries.

I spent 17 years of my professional life designing, manufacturing, and selling batteries worldwide. Were not lithium batteries, were nickel-cadmium or were lead-acid batteries, but I think I'm very familiar with batteries because is part of my background.

We are investing in batteries, especially in markets where we have not possibilities of making hydro pumping. Countries also which has attractive regulatory frameworks.

For instance, in Australia, we have already 320 MW, which is 640 MWh installed, another 270 MW, which is 550 MWh under construction, and we have some mature projects as well for another one with 100 MW of capacity. In UK, we have as well installed battery with 250 MW, which has a capacity 200 MWh, and we have quite long developing pipeline.

In US, that we installed the first battery storage project in this moment in Oregon with 80 MWh, and we expect to start others as well soon. In Spain, we are the leader, we have 212 MW installed, which is 100 420 MWh, and 245 MW is under construction.

I think we are in countries. I think if we compare all these numbers, which is few hundreds of megawatt-hour, compared with the capacity we have for hydro pumping is peanuts.

I think 120,000 MWh is equivalent of 60,000 MW of normal batteries of 2 hours capacity, or 30,000 MW of 4 hours capacity. It's a huge capacity, and that is what we are already the reason why now in this moment almost 35%, 40%, Pepe mentioned, of our hydro production is coming from this pumping storage.

That is the consequence of a decision we took 25 years ago when we started already this the new times of the company.

Pepe.

The net debt is probably going to be around €56 billion, and basically it's slightly higher than we had in the plan, but driven by the appreciation of the currencies from the beginning of '25, that although the currencies, the dollar, especially the dollar and the real, are lower than last year, they are higher that at the beginning of this year, no? That is having already an impact in the debt, as you can see in the presentation.

On the other side, it's could be good news for the FFO generation for 2027, no? This is more or less around €56 billion where we are expecting to close the year.

Pedro. Okay.

I think we remain the market leader in terms of energy supply, but also in terms of the customer portfolio. Much lower rate than any of our competitors, especially new entrants, which basically means a strong customer retention.

I think we have a good evolution of our portfolio, the customer portfolio, including Neva, our second brand. I think we continue to add products.

Let's not forget what the Chairman mentioned in his presentation, which is that we've been impacted both in Spain and Portugal by the additional cost of the so-called reinforced system operations by Red Eléctrica, in addition to other impacts due to regulated gas service in Spain.

I don't know if I mentioned before in other insist, the key issues today in most countries for regulators and government are availability and reliability of electricity. Availability is to have sufficient power and infrastructure.

I think you see in United States, we are huge demand, people knocking our door for extending life of the existing asset, of investing in new ones with long-term PPAs, even longer than before, with higher prices. Reliability, I think most of the agreement we today are installed, I think they need 24/7 service.

That means we need a grid more robust, more resilient, and with better quality of service. I think that is the two drivers that will require this massive investment, mainly in networks, as is recognized by several government, I think recently by European Commission.

They are special directive related to networks. Which I think is absolutely new because traditionally make directives about clean energy, about renewable, etc.

It's especially made for the need of networks in all countries for achieving this availability of energy, reliability. If you go to reduce electricity price for consumers, the easiest and fastest way is to reduce taxes and charges than today are include energy bill, the electricity especially.

That is what European Commission is recommending, and that is the first measure taken by the British government. I think the taxes which are in most countries supported by electricity, especially in Europe, are huge.

Probably close to 50% of the energy bill is related with taxes and charges, which is much higher than the fossil fuels in a country where we are fully dependent of imports. We are penalizing the local production for subsidizing or penalizing less that one which import.

It's absolutely needed to revise the taxation of electricity if you would like to electrify the economy, if you would like to have the availability of power, which is needed in most countries, the reliability of the grid for making a grid more robust, more resilient, and with better quality of service to provide 24/7 service to the citizen in the best condition. That is what the European Commission is dictating.

That is what the British government is doing, the first decision they took: reduce taxes for electricity for electrifying the economy.

Thank you very much for taking part of this conference call. As always, our Investor Relations team will be available for any additional question.

If we have not already the opportunity of meeting, as I said before, I wish you a extremely good summer, good holidays, and I hope that after summer, we can give even better news for you. Thank you very much, and relax a bit.

Thank you.