Good morning, ladies and gentlemen. First, we would like to extend a warm welcome to all of you who have joined us today for our 2026 first quarter results presentation.

As is customary, we will follow the traditional structure of our events. We are going to begin with an overview of the results and the key developments during the period.

The presentation and the Q&A will be delivered by the top executive team joining us today: Mr. Ignacio Galán, Executive Chairman; Mr.

Pedro Azagra, CEO; and finally, Mr. Pepe Sáinz, CFO.

After the presentation, we'll move into the Q&A session. I would like to remind you that we will only be taking questions submitted through our website.

Please send your questions exclusively via www.iberdrola.com. Finally, we expect that today's event to last no more than 60 minutes.

Should any question remain unanswered, the IR team will, as always, remain fully at your disposal. We hope that this presentation will be useful and informative for all of you.

Now, without further ado, I would like to hand the floor over to Mr. Ignacio Galán.

Thank you once again. Please, Mr.

Galán.

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

In the first quarter 2026, adjusted net profit increased by 11% to €1,865 million. Adjusted EBITDA reached €4.1 billion, up to 2.4%, mainly driven by 9% increase in networks, more than offsetting the lower contribution of power and customers due to nonrecurring impacts in Iberia in the first quarter 2026 and in this previous year in US, which were partially compensated by strong production in UK and Continental Europe.

Investment reached €2.7 billion in the quarter for a total of €14.5 billion in the last 12 months, fully in line with our strategic priorities. More than half in our Q1 investment were located in UK and US and 58% in networks, increasing our regulated asset base to €53 billion.

We also invested more than €1 billion in new renewable capacity. As last week we announced the closing of the Mexico transaction, which completes our asset rotation target for 2028, reinforcing our financial profile and securing additional funds to invest in regulated networks business in the UK and in the US, and Brazil, where we have also acquired the shares of Neoenergia we don't control.

This transaction will follow other recent deals, also related to networks, like the purchase of Avangrid minorities or the integration of Electricity North West in the UK. That will simplify our structure and have positive impact in net profit from year one, increasing our exposure to a country with high growth prospect and strong regulatory outlook like Brazil.

Driven by additional cash flow generation up to 7% and the positive impact of the Mexico transaction, our pro forma net debt reached €50.3 billion, reinforcing credit metrics in line with our BBB+ rating. In terms of efficiency, our recurring net operating expenses rose just 1% up to March, excluding the incremental effect of Electricity North West in the UK.

In the coming quarters, we expect to benefit from the use of capital gains from asset rotation in line with previous year. On top of this, we are implementing a full review of our processes to integrate artificial intelligence solutions across our activities and corporate areas, with more than 300 initiatives already identified.

That will drive they will drive further efficiencies and new business opportunities next years. All in all, these results reflect the benefit of our business model based on regulated business in A-rated countries and that provides stability and sustained growth in all scenarios.

Even in the current energy crisis, probably in my the sixth or the seventh linked to fossil fuels since I started my career, we don't expect in Iberdrola any significant financial impact from this scenario, given our minimal exposure to commodities, our zero exposure to supplies affected by the Strait of Hormuz, with 93% also of our energy purchases fully secured, our geographical footprint based in A-rated countries, and our structural protection against potential macroeconomic shocks. As most of our remuneration frameworks are linked to inflation.

We have foreign exchange risk fully covered by our tender currencies projected estimate, 75% of our debt is fixed rates, and our current liquidity stands at €21.4 billion, enough to cover 23 months of financial needs. The resiliency against crisis will be reinforced in the coming years, thanks to our focus on regulated electricity networks, mainly in the US and the UK, and our generation generation technologies not linked to fossil fuel volatility.

100% of our production is already sold for '26, 80% for '27, 75% for '28. As a result, by the end of the decade, 75% of our EBITDA will come from regulated networks and long-term contract and and long-term contracted generation.

Apart from increasing our own resiliency, our performance in the last quarter shows that the Iberdrola business model is also improving energy security, strategic autonomy, and competitiveness in in in each of the countries where we operate. Given these benefits, more more and more governments are putting electrification at the center of their energy and industrial policies.

In the last week, the European Commission and the European Council had published different communication, documents, and statements, with a clear message: accelerating electrification with indigenous sources, including nuclear, is the most effective way to promote European strategic autonomy and competitiveness. Other countries, like the UK, are following the same strategy.

We could listen to many European policymakers reaffirming this approach last week at WindEurope annual event held in Madrid. Moving on to business highlights, over the first quarter, networks has continued to deliver predictable and sustainable growth.

In the UK, the RIIO-T3 final determination will increase our transmission investment to €14 billion up to 2031, improving rates of return, accelerating cash recovery. In the US, Avangrid results reflect the additional contribution of new interconnection line between Canada and Massachusetts was commissioned in the last days of 2025, as well as the impact of rate increases in Connecticut and New York.

In Brazil, the renewal of distribution concession for additional 30 years was published in the Union Official Bulletin, and the formal signature ceremony is expected in the next few days. This will provide us visibility up to 2060, with no upfront cost and with relevant regulatory improvement, like recognition investment on annual basis.

Operating performance was also positive in power and customers, in a context of increasing demand in all our countries, mainly the US and Brazil. In Iberia, hydro reserves continue at record levels, and the UK wind production is 40% higher than in the same period of 2025.

Finally, offshore wind production has increased significantly in our international business, due to the completion of Baltic Eagle in Germany and higher availability across the fleet in Germany and France. As mentioned, adjusted EBITDA reached €4.1 billion, driven by positive networks operating performance in all geographies, higher rates, an 8% increase in regulated asset base due to the strong investment in UK, especially in transmission.

In power and customers, the evolution of EBITDA reflects negative nonrecurring impact, mainly regulatory and ancillary costs in Iberia, as a result of the reinforced operation applied by Red Eléctrica de España to include more synchronous generation. As system operator is responsible for keeping the lights on, and since the blackout, he has changed the operation of the system, now called reinforced operation, but in reality is more irregular operation system.

In my opinion, as an electrical engineer, as I mentioned to you several times, it was a lack of proper planning and the due execution on the day on the day of the blackout. As we had in the system around four times as we had in the system around four times the power needed when it happened that was not used.

The comparison against the first quarter 2025 is also affected by in the business by nonrecurring positive results registered last year in the US, that will normalize over the coming months. These effects were partially offset by higher production, particularly in offshore wind, with a 42% increase in output.

By geographies, the UK and the US account for almost 50% of EBITDA, and A-rated countries contribute 84% to operating results once we add European countries and Australia. Investment reached €2,705 million in the first quarter, for a total €14.5 billion in the last 12 months, mainly directed to networks.

Focusing on the first quarter, more than €900 million were located in UK, reflect an increase in transmission investment that will accelerate even more under the RIIO-T3 framework. Investment in the US reached €550 million, mainly in distribution.

However, the comparison with last year is affected by the completion of different renewable projects and the interconnection line between Massachusetts and Canada. Investment in Continental Europe and Australia reached €400 million, mainly related to the Windanker offshore wind German farm in Germany and new offshore and battery storage onshore and battery storage projects in different states of Australia.

Investment reached €308 million in Brazil, with a increase of 30% in distribution, and more than €500 million in Iberia. Thanks to the €1.5 billion invested in networks up to March, our regulated asset base reached €53 billion, up 8% year-on-year.

One-third of the total investment were allocated to transmission, driving a 29% increase in regulated asset base up to €14 billion in this concept transmission. Distribution investment also exceed €1 billion, up to 16%, mainly driven by a strong increase in around 30% in the UK and Brazil.

By geographies, 46% of investment were made in UK, 26% US, 20% in Brazil, and slightly less than 10% in Spain. In power, we invested €1,070 million mainly in wind.

Almost half of this investment, around €500 million, were located in onshore wind across Australia and the US, UK, and Iberia, followed by offshore wind with €300 million. Solar PV investment reached €162 million, spread across Iberia, other EU countries, and Australia, as well as the US.

We invested €115 million in storage, mainly in Australia and EU. This has allowed us to increase our capacity by 3,300 MW over the last 12 months, including two new gigawatts of wind, 1 GW of solar, and more than 300 MW of storage.

Regarding financial strength, the 7% increase registered in FFO on the positive impact of asset rotation and partnership, mainly due to Mexico transaction, that had led to us to pro forma net debt of €50.3 billion even after an increase in organic investment and acquisition of Neoenergia minorities. As a result, our FFO adjusted net debt ratio has reached almost 25%, comfortably within the range of BBB+ rating.

On top of that, liquidity stands at €21.4 billion, enough to cover 23 months of financial needs. Finally, in the last month, we have accelerated the implementation of artificial intelligence initiatives, with an internal team fully dedicated to end-to-end transformation of our processes, taking advantage of our own talent and resources, as well of our understanding of our asset portfolio.

In just a few months, this team has launched more than 300 AI projects, 70% 70% fully developed in-house, to increase revenues and maximize operational efficiency across our business and corporate area, mainly based on generative AI AI, but also on advanced machine learning and robotics. We will inform you about the financial impact of these initiatives as soon as they begin to materialize, but for the moment, I can tell you that our initial findings show a considerable value potential.

I will now hand over our CFO, which will present the group financial results in full detail. Pepe.

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

As the Chairman has mentioned, these first quarter results confirm the strength of our business model. The first quarter EBITDA was 2.4% up to €4 billion, while adjusted net profit grew 11% to €1,865 million.

Since last year, the dollar has depreciated 11.4% against the euro, the pound 4.2%, and the real 1%. As a consequence, FX has reduced our profit and loss figures.

If you exclude FX, growth would have reached 6% at the EBITDA level and 17% at the net profit level. ENW is fully consolidated all the quarter versus last year, where it was only 1 month.

For clarity and comparability, we have applied a limited number of well-defined adjustments aligned with IFRS and our guidance definitions, thereby keeping differences between reported and adjusted results to a minimum. Mexico contribution is excluded at the EBITDA level in both reported and adjusted results, following the IFRS 5 recommendations.

Mexico is classified as discontinued operations in both cases. In the reported accounts, Mexico is presented directly under the discontinued operations line, and in the adjusted accounts, for visibility purposes, Mexico is recognized under the equity line.

In addition, there is a negative adjustment accounted in this quarter related to the year '24 divestment of our thermal assets in Mexico, which is excluded from the adjusted '26 results. Second, as usual, UK capital allowances are adjusted at net profit level in both years.

Finally, US pass recognition is excluded from the adjusted net profit in '25, in line with the definition applied in our '25 guidance. You can find all this explained in more detail in the annex, specifically in slides 36 and 37.

Regarding our gross margin, a 0.3% decrease in adjusted revenues combined with a 0.5% increase in procurements resulted in a 1% adjusted gross margin decrease. Excluding the FX impact at this level, which is €267 million, adjusted gross margin would have grown by 3%.

In the first quarter, net operating expenses decreased by 6% year-on-year and by 0.7% excluding the FX impact. First quarter net personnel expenses fell 0.8%, external services were down 2%, and operating income grew 24%.

On a recurring basis and excluding the FX impact, net operating expenses would have grown by 8.1%, mainly due to the ENW contribution. Analyzing the results of the different businesses, and starting by networks, its adjusted EBITDA grew 9% to €2,048 million, driven by the strong performance in the UK and in the US.

Excluding here also €94 million of FX impact, adjusted EBITDA grew 14%. In the US, IFRS adjusted EBITDA increased 22%, reaching $612 million, due to higher rates in distribution and a better contribution from transmission, including the positive contribution from NECEC line following the 16th of January COD.

In the UK, EBITDA was up 32% to £447 million, with higher contribution from ENW versus last year as consolidation started in March of '25, and also an increasing contribution from our transmission business, thanks to a higher RAV. In Brazil, EBITDA fell 0.7% to 3.6 billion reais, with higher revenues due to yearly rate reviews offset by lower inflation and lower demand growth versus last year.

In Spain, EBITDA increased 6.2% to €426 million, driven by the 6.58% new regulated return, and also with a €15 million positive net impact from adjustments due to past years' remunerations. Q1 '26 power and customer business EBITDA was €2 billion, 3% lower than last year.

During the quarter, Iberdrola produced 33,000 sorry, 33,000 GWh of electricity, with 86% sourced locally and being emission-free, which is a reference of the EU targets regarding power production. In Iberia, EBITDA was €1,002 million, 3.2% down, affected by ancillary costs, regulated gas rate, and lower prices, despite higher electricity sales.

As of today, Iberdrola has record hydro reserves, as mentioned by the Chairman, which will help the performance of the group in the second half of the year. In the US, EBITDA decreased 32% to $196 million, with lower contribution from wind, thermal assets, and a negative timing effect that will normalize during the year, and despite better prices.

In the UK, EBITDA increased 16% to £493 million, thanks to higher wind resource, both in onshore and offshore, more than compensating lower prices, and better contribution from the supply division, driven by better margins. In the rest of the world, EBITDA decreased 7.6% to €212 million, despite a 37% higher offshore production, due to lower contribution from our onshore wind assets, affected also by the sale of some geographies like Hungary and France, and a negative impact from higher ancillary costs in Portugal.

In Brazil, EBITDA increased to 500 million reais. Depreciation, amortizations, and provisions grew 9% to €1,476 million, driven by a higher asset base and a normalization of provisions versus exceptional recoveries in Q1 of '25.

Adjusted EBIT decreased 1% and reached €2,591 million. Excluding €80 million of negative FX impact, it grew 2%.

Net financial results improved slightly to €497 million, due to a €4 billion lower average debt and helped by the currency depreciation, despite €56 million worse derivative results. Regarding debt structure, fixed debt, excluding Neo, amounts to 77% at March end, 12 percentage points above our fixed EBITDA, reducing our risk of negative impact due to a possible interest rate increase as a consequence of the Iran conflict.

Net debt increased by €1.7 billion versus full year '25 to €51.9 billion, mainly due to the currency appreciation, capex, and dividend payment in the quarter, partially offset by the FFO generation. Including the net €1.6 billion collected from the Mexico sale to Cox and payment linked to Brazilian minorities acquisitions, both executed in April, debt would have been €50.3 billion, in line with year-end levels.

Better debt levels compared to Q1 '25 and a 7% higher adjusted FFO, that reaches 12% in excluding FX, delivered solid credit ratios for our BBB+/Baa1 rating. These metrics clearly support our rating and underlines the group capacity to grow while having a strong balance sheet.

Our adjusted net debt to EBITDA was 3.4 times, below 3.7 times in Q1 '25. The adjusted FFO adjusted net debt reached 24%, well over the 21.2% in Q1 '25, and our adjusted leverage ratio was 44%, 3 percentage points better than the 47% in Q1 '25.

On a pro forma basis, ratios improve even more, as you can see in the slide. Q1 '26 adjusted net profit grew by 11% to €1,865 million, compared to the €1,674 million adjusted net profit in Q1 '25.

Excluding the €99 million FX impact, adjusted net profit would have grown by 17%. Neoenergia minority shareholders acquisition, although does not contribute to a higher EBITDA, reduces the dilution at the net profit level, and in this quarter adds €57 million to the net profit.

In addition, it simplifies Iberdrola financial structure and increases the weight of networks in our net profit. The slide presents the reconciliation between reported and adjusted net profit.

This is shown in more detail, as I mentioned before, in the annex. As well, we are showing in the annex the calendar for the final dividend.

Thank you very much, and now the Chairman will conclude the presentation.

Thank you, Pepe. To conclude, these first quarter results confirm the resilience of Iberdrola business model in the current context of geopolitical uncertainty and reinforce our positive prospect for 2026.

In the coming quarters, networks will continue to be our main growth driver, thanks to an ongoing increase in our regulated asset base, both in distribution and transmission, as well as the impact of new regulatory framework like RIIO-T3 in the UK, or the annual tariff adjustment in Brazil, where we will also benefit of higher contribution from Neoenergia after full acquisition of minorities. As mentioned, this transaction will simplify our structure in the country, accelerate our strategic focus in networks, in line with acquisition of Avangrid minorities or the integration of Electricity North West in the UK last year.

In power and customers, we will add 2.7 GW before the year-end, on top of the 1 GW commissioned in the first quarter. Our hydro reserves continue at record levels, driven by a strong hydro factors of January and February and the positive performance of pump storage.

We will also continue improving operational efficiency across our businesses. In terms of financial profile, our current debt levels and the ongoing cash flow generation will allow us to increase investment and preserve strong credit ratios.

This positive operating and financial outlook is leading us to upgrade our guidance for 2026, to an expected growth of more than 8% in adjusted net profit, excluding capital gains from the asset rotation, which has always done that we will apply for future efficiencies. We expect to continue accelerating growth to the 2028 and beyond, benefiting from increasing electricity demand outlook across the energy uses and geographies, driven by technology progress and new energy policies, as governments try to capture all the positive impacts of electrification in terms of strategic autonomy, energy security, and competitiveness.

In this context, over the last months, we have continued securing new investment opportunities in all our key countries. United States, the consensus on the urgent need of generation and network infrastructures is becoming unanimous, given the strong increase in demand.

According to Standard & Poor's, annual US capex will grow by 11% per annum from '25 to '28. For Avangrid, this means additional investment in transmission, and distribution, and generation, including repowering and life extension of part of our current fleet of 11,000 MW.

In the UK, after increase in transmission investment already confirmed by RIIO-T3, we also expect significant growth in distribution in the next regulatory period starting in 2028. The government confirmed its support to offshore wind, with AR8 auction expected later this year.

As ScottishPower East Anglia ONE North project is ready to bid and has its supply chains totally secure. We also see increasing opportunities in Continental Europe, offshore wind, for instance, in France, and onshore technologies, as well as Iberian retail business, where we keep leading leadership in customer numbers and quality.

In Brazil, the renewal of distribution concessions for 30 years and with improved conditions will bring more visibility in a context of increasing investment needs. Finally, in Australia, we are already designing our first transmission project in West Victoria, and we are working in new opportunities in this business for the coming years, as well as in additional growth in onshore wind, solar PV, and batteries.

Artificial intelligence is also generating new opportunities on electricity demand growth and it huge potential to optimize business processes, hours increasing additional remaining efficiency across our electricity value chains. All in all, you can be sure we will continue delivering strong, sustainable, predictable, and resilient growth, and in results and dividends, as we have done in the last decades.

Thank you very much for your attention. We are now ready to answer your questions.

Thank you.

The following financial professionals has raised the following questions: Alberto Gandolfi, Goldman Sachs; Philippe Ourpatian, Oddo; Pedro Alves, CaixaBank; Pablo Cuadrado, JB Capital Markets; Meike Becker, HSBC; Manuel Palomo, BNP Paribas; Peter Bisztyga, Bank of America; Rob Pulleyn, Morgan Stanley; James Brand, Deutsche Bank; Jorge Alonso, Bernstein Société Générale; Fernando García, RBC; Javier Suárez, Mediobanca; and finally, Skye Landon, Rothschild. The first question is, could you outline the key drivers of Iberdrola's Q1 2026 net profit and explain the main factors behind the year-on-year growth?

Thank you very much. Already, as I explained, in networks, we expect a strong performance in the UK and US, due to the consolidation of Electricity North West from March 2025, higher rates, and contribution from NECEC interconnection between Canada and Massachusetts, and also higher RAV in all countries, because of the investment we has been doing.

In power, business affected by nonrecurring impacts, the cost of ancillary services in Iberia in 2026 and some timing effects in the US then was affected this year, and as well in positive, we have the higher production. Below EBITDA, a good evolution of our financial expenses, positive impacts of the 100% acquisition of Neoenergia, that we have already as mentioned before.

That makes our net profit grows by 11%, even with a negative impact of almost €100 million due to the FX. Without this one, the net profit that Pepe mentioned was 17% increase on adjusted terms.

Next is, could you elaborate on the new 2026 net profit guidance and summarize the main operating and financial drivers you expect to support delivery over the reminder of the year, remainder of the year, sorry?

Almost on the same line that I was commenting for 2026. We expect to continue the strong performance during the rest of the year, in networks growing the regulatory asset base in all countries, new distribution framework with better rates, RIIO-T3 from April, new interconnection between Canada and Massachusetts, better tariff in Brazil has been already adjusted in the last few days, additional contribution from Neoenergia for the 100% ownership.

In power, we have already installed 1 GW in the last 3 months, and we expect to make another 2.7 additional before the year-end. We expect to continue to have this renewable output after last year very low production, especially in the UK.

Our hydro reserves are in record levels, and apart of that one, we have the very good performance and good spread of our pumping storage facilities, which I think only in the first quarter, we have already produced 1.6 TWh, which I think is an important percentage of our total electricity generated with hydro. We have lowered net debt and better ratios.

The interest rates mainly are fixed or hedged. We are not expecting significant volatility to the geopolitical dynamics, as I mentioned before, because our regulated transmission and distribution networks business, and because our power 86% of our production is not linked to fossil fuels, and 100% of 2026 is already sold.

That why we are improving our guidance to an expected growth for more than 8% in adjusted net debt, excluding capital gains, which always we use for future efficiencies.

Next is related to the fiscal tax rate at the end of the year, what is the expectation we have?

Pepe?

In this quarter, our taxes have been affected by reversal of a provision thanks to that we have won a court case, and also impacted by the fact that the countries with higher tax rates have been lower contribution to our profits, no? We are expecting that our tax rate will go towards around 20% along the fiscal year.

It will increase to reach these levels of around 20% at the end of the year.

Next is related to one slide that has been explained already, but is related to the impact of the Iran crisis in our operations, supply chains, and financial evolution.

As I mentioned, we don't expect significant in the short term, because 84% of our assets are in A-rated countries not exposed to the conflict. Our growth is focused on regulated networks, which is two-thirds of our investment is coming to this segment.

The US and UK represent 65% of our total investment. 75% of the EBITDA will come from regulated long-term contracts activities in 2028-2030.

85% of the production as well in 2028 are already secured through CFDs, PPAs, etc. The supply chains are not affected by Strait of Hormuz dynamics, because we are focusing local suppliers with no exposure to the area.

In fact, today 93% of our strategic equipment for investment is already secured. We have a minimal exposure to commodities, and we have not already long-term contracts of gas, I think that is not affecting to ourselves and the negative trend of whatever.

I think it's for me, as I mentioned, the current context proved again the electrification is the best route to energy security, strategic autonomy, and competitiveness. I think energy security is national security, and electricity, as is repeating now all European leaders, is the solution.

It's not a threat, it's not a problem.

The street is asking more details on the artificial intelligence initiative of Iberdrola.

Pedro? Yeah.

Thank you, Chairman. I think we're approaching now almost 400 projects of initiatives in AI, and more than 70% are generative AI, and more than 10% of those are robotics.

These projects cover all corporate functions, all businesses, and all geographies. They're linked to efficiency, but also very important to new business opportunities.

Very important, this is a process transformation. More than 70% are in-house made.

I think we will see positive impacts, as the Chairman said, and we will be updating in the upcoming quarters.

Next question is related to the recent closing of the Mexico deal to Cox, including timing, expected capital gains, and intended use of proceeds.

As I inform to you, the transaction was closed on Friday, that means we received the money on Friday. The figures were in line with we announced last summer when we sign this agreement.

We are calculating the capital gains in detail, but, of course, is going to be several hundreds of million of euros. As usual, we will use this money, this capital gain, to achieve efficiencies in the future, and that will not impact to our guidance, as I mentioned before.

Now, you allow me, I will pass to Spanish, to español, para dar alguna... so

that I can thank the workers of Iberdrola Mexico for their work over the last 25 years, and we have assisted them in the development of the country and we have supplied them with safe and competitive power for their citizens and their industry. I also would like to thank the respective governments and the institutions and our customers and suppliers, too, who over the years have supported us and have collaborated with us throughout all of this time to be able to provide this service.

As I said previously, on previous occasions that is, one of the main reasons behind this operation is our priority is focused on investing in electrical grids, which is an activity that is in the hands of the National Electricity Commission, we can't really do anything in that particular area. I would like to say, however, that we are deeply satisfied because we are leaving top-level electrical infrastructures, and I know that now and in the future all the Mexican citizens will benefit.

As I also pointed out to the Mexican authorities, we want to invest more money in Mexico in the future when the circumstances allow us to do so, once we have completed our investment cycle.

Next is, could you update us on the rationale and process for acquiring the remaining minority interest in Neoenergia and the expected implications for Iberdrola's results and financial structure?

Pepe, ¿comentas tú?

Yes, well, since we bought the minority stake from Previ, it made all the sense for us to complete the 100% of the capital. Obviously, the consequences of that is that it will improve our results, basically through lower minorities.

It will also help to simplify our financial structure and operations. We are now more and more exposed to the network business at the net profit level, as we did also the acquisition of the 100% of Avangrid in the US and the integration of ENW in the United Kingdom, no?

Clearly, our focus on this proves our focus on networks. Addition to that, Brazil is a core geography for us, with very good prospects, with a very regulatory situation, and where we are investing heavily, and we plan to continue to invest.

I don't know, Chairman, if you want to complete this with your...

Thank you, Pepe. I think I was 2 weeks ago in Barcelona with the President Lula.

He was visiting Spain, and I have already very a good meeting with himself, reaffirming our our commitment with the country. We are the largest investor in the country last year, more than 30 billion reais organic by the purchase of minoritarians that Pepe mentioned.

He invited me for the the the concession renewable signature ceremony on the I think is a 6th of next week, on the 6th of May, and I will go there in Brasília with himself already signing this one, which I will already participate in. As I mentioned as well to the President Lula, our expectation is to increase heavily our investment in in all our territories of distribution, but mainly in the area of the west part of Bahia, which is a huge demand has not been covered because of lack of infrastructure.

I think, in general, our commitment with the country remains, and I think next week, I'll I'll be present there in Brasília with the President Lula for signing this the ceremony of signature of the of the renewable concessions. Next,

could you comment on the current UK offshore wind environment, including Iberdrola's intentions for the upcoming AR8 auction and your perspective on the new seabed lease auction process?

I think UK has clear electrification strategy. Electrification is I think the word that I use, energy security is national security, is a word that was not invented for myself, was already invented by the British Prime Minister.

I think that provide long-term energy autonomy, that provide competitiveness, and I think is clear as one of the key instrument to achieve his goal and to increase the investment in offshore is crucial for them. I think that is the reason why the government has recently brought forward the AR8 to this year, it was planned for the future is that.

For this auction, we have a project of East Anglia ONE North, 900 MW, which is ready to participate, which we have all the supply chain secure. I think we will follow, as always, our profitability criteria.

Regarding the seabed lease that has been recently announced, I think for us is still too soon. We will review the detail when they will be available.

In any case, I would like to inform you that we have, in this moment, more than 5,000 MW of offshore seabed rights, 2,000 in Scotland fixed, another 3,000 floating. I think we have plenty of seabed rights for continuing our expansion in this field in the UK in the future.

Next is related to the hedging position and the expectation for prices and volume sold in Spain and the UK in the period 2026-2028.

Pedro?

As you would expect, in '26, we have already committed 100% of our available production. In '27, is already 80% plus, and in '28, we are in lines with the capital markets guidance.

I think, in general, the prices we expect in line with the plan estimates that we gave to you before. As the Chairman said before, we will benefit from additional capacity and from increasing pumped storage margins.

Next is, the audience is asking about the past year blackout, including key findings to date, Iberdrola position, related proceedings, customer claims, and any view on the evolution of ancillary service costs in the future. I think

we have always said, as engineer, has been confirmed by all report and investigation and all the audios has been published not only on the day of the blackout, but also on the previous days and weeks. I think that's clear what is this one.

This blackout, I insist on that one, that was result of inadequate planning and management and operation of the electricity system, and that lead to insufficient synchronous units programmed, despite the power was available. I think if everything had been done properly by Red Eléctrica, I think we could ask Red Eléctrica why it has changed the operating model, adding more synchronous capacity now.

If all the things was correct this day, why they change the operational system? Now we are paying billions of euros of the additional cost, citizen and companies, you saw in our accounts, just because they changed the operational system, putting more synchronous capacity, much more synchronous capacity, because the power was available.

We have already a power installed power in the country, which is three or four or five times more than the power needed in day-to-day basis. I think it's not a question of lack of power.

That's why I think is something which, for me, is important. We should distinguish between transmission network ownership, which is a business activity, and the system operation, which is not a profit business.

It's a public responsibility, and that is why in other countries, both activities are fully separated. System operator have to take care of keeping the lights on.

Network activities are already a business, which is to maximize the profit. When you mix both things, it could conduct already situations which can already make problems as those what we have already faced.

In any case, Gerardo, would you like to add anything?

Yes, thank you, Chairman. Just to say that the CNMC, in its report about the blackout, has stated that on the day of the blackout, the system had enough regulatory, normative, and technical tools to avoid the blackout in place.

I think that is very important, because it's the only official report, because the CNMC, together with the ministry, is the only institution competent in relation to the blackout. Regarding the proceedings initiated by the CNMC, therefore the CNMC has also stated that none of these proceedings are related to the events that led to the blackout.

Regardless of that, I think that we have a very strong defense, very strong position to defend these cases, because we have always acted according to law and with full transparency to the system operator and the regulator. As far as we know, the only very serious proceeding directly related with the blackout, according to those reports, the audios, the investigation, etc., is that is open to Red Eléctrica de España.

Regarding the customer claims, finally, the reality is we haven't received many claims compared to the size of our customer portfolio, and of course, we have insurance policy. I would say that our position is good, is strong.

As I mentioned, I think, following the blackout, Red Eléctrica has doubled the use of combined cycle plants and nuclear for voltage control, what they call reinforced operation. This reinforced operation now is not becoming reinforced, it's becoming regular.

At this seems, I think if that is regular, should be recognized as regulated cost as is already in other countries, not affecting to the certain citizens, and affecting to the companies, to the operators, the other of the trading companies.

Next is, how would you describe the current performance and outlook of your retail business in Spain, given the increased competition?

Pedro?

The underlying business in retail is doing very well in Spain. We continue to be the market leader, both in numbers and quality of these customers.

We have much lower churn rate than our competitors, especially for new entrants, with a very strong customer retention. There is a good evolution of our customer portfolio, including the second brand, Niba.

We are very comfortable now on that position as well. We continue to add products and services as well.

Question 12th is, what is Iberdrola's current view on the role of nuclear generation in Spain, and could you update us on the status of Almaraz extension process?

I think as I have repeated several times, nuclear is necessary, is safe, is efficient, and contribute to lower prices and to the security of the system. In fact, now the European countries with no nuclear have a structural higher prices.

That is the case of Germany and Italy, which is even €40 per megawatt-hour more than France of Spain. I think is certain analysts is already fixing this number, Pricewaterhouse in some of his reports is talking about 47, but the reality today is 40, which I think they are not far from what they are predicting this consulting company.

Also, the European Commission, led by the President Ursula von der Leyen, is urging member states to avoid premature retirement of existing nuclear assets. Even he mentioned about it was European mistake of closing and not investing in nuclear.

Since they provide firm, low carbon, and low cost electricity. I think, in another words, she's talking about European critical infrastructure.

Nuclear is more than national, is becoming European critical infrastructures. I think that was confirmed again in the last week in the Accelerate EU communication.

That's why, I think, we have already asked the extension of Almaraz to 2030, and the process is ongoing. I think Spanish security councils analyze it, and I think as soon we provide the information.

In any case, all the nuclear need to have already sufficient and sustainable remuneration regime, as another countries did. I think we have either to secure price attractive level, or either to reduce taxation, whatever thing to give viability of that one.

I think in the case of taxes, in the case of Spain, certain autonomous communities, Valencia and Extremadura, has already just reduced, or they are ready to reduce the local taxation, which I think that is in the mind of the people. I think is my personal vision is that nuclear facilities in Spain and another countries will be extended for longer term.

I think is in the case of Europe, are essential infrastructure to secure electricity supply, I think is as European Commission is suggesting, is becoming critical for keeping the lights on and the European competitiveness as a key tool for minimize the external dependency, to reduce volatility, and not to be already depending on volatilities with external factors as those one we are suffering those days with the problem of Hormuz Strait.

Next is, could you provide an update on the construction status and operational ramp-up of Vineyard Wind 1 offshore power plant?

Pedro? In

practical terms, the wind farm is completed. We finished the construction of all the positions.

The levels of availability we expect to be in line with other offshore wind farm in operation. Very important, many of the positions have been exporting power for many months.

Also, the financing is advanced, both tax equity, tax credits, but also the debt financing. We are moving forward very well with the asset.

I think if I not wrong, from the 24th of April, is in commercial operations.

COD was declared.

I think that is in commercial operation now.

Next, could you outline Iberdrola's growth opportunities in the US power business, given the increase in electricity demand?

Pedro?

As the Chairman highlighted, we have passed 11,000 MW in the US. What we see is a strong demand increasing in the US.

More power is needed, that's clear. Avangrid is and continues to invest.

We added almost 1,300 MW of capacity. We have 700 MW under construction.

We have identified 3,000 MW of additional potential capacity, more than 1,000 of those very advanced status, and, of course, life extension, or repowering the short term are a clear path. Therefore, clear interest of some of our existing customers for new PPAs.

By the way, we're increasing also for the first time, a new battery storage, we just approved a project in Oregon. We are starting now in that field.

Next is, could you explain the recent FERC decision to reduce allowed ROE for New England transmission owners, and what expected implication for Iberdrola?

Pedro?

This is a matter that affects all the transmission operators in New England. As there is another case in MISO, which we expect the court ruling soon, and therefore, since it's a similar procedure, we will see what happens there.

It's important that they allowed no payment to be done for the next 12 months. There is no impact in that amount.

In any case, I think you have to be aware that is something which is coming from 2011. I think something 14 years ago is revising.

Decisions they took 14 years ago to say that probably how they pay in these 14 years was not already whatever. I think to talk about retroactive actions with 14 years, we are quite confident that the courts will already take into consideration the comments which are making all the people affected all across United States.

I think in 14 years has not revised the terms of the decision they took, and 14 years later, they are looking that what they already considered is not already that one have to be paid. It's something which is difficult to be understood by engineers like myself.

I don't know if lawyers will understand this thing better than we engineers.

Next is, how do you assess the current affordability debate, both in the US and in Europe, and what measures do you believe would be the most effective in reducing electricity bills for customers?

As the electricity tariff has three main concepts. One is the electricity cost, which is power and networks.

Power, it depends of each country what is the mix of power generation. In networks, it depends how efficient are already this network.

I can say that, in general, European networks are more efficient than those which are another side of the Atlantic. Second parameter is taxes.

I think taxes in the case of Europe is four times higher than those which are in United States or in China. The last one is the industrial and energy policy cost.

I think is a lot of things included in the tariffs what the consumers are paying, or the companies are paying, we have to see already with any policies in each country. As I mentioned, in terms of taxation, I think this is represent in most cases in Europe more than 40% of the bill, 40% of the bill, toward 10% in the States.

I think so that's why I think the fastest way of that one is reducing taxation, to reducing bill. That is being recommended by European authorities.

Is which we have to be on that one. If we like to electrify, we cannot penalize.

We have to incentivize, not penalize. I think the big threat that we are to affordability in the case of that one is to continue relying in fossil fuels.

I think in my professional life, I mentioned before, I have already had six or seven different energy crises. In all these energy crises, the solution is not to penalize electricity, is to incentivize electrification.

Now that is already on the communication European Union as the key driver for that one. That is what they are saying: more electrification, more indigenous sources, renewables and nuclear as base of the European energy mix, more distribution and transmission grid, more interconnection between countries, and more access to consumers to electricity.

I think they are already a demand which cannot be supplied because of lack of infrastructure of electricity. People is willing to electrify more their uses, but their latent demand which cannot be supplied because of lack of infrastructures, because in some countries, we've been suffering, and still we are suffering, certain caps of investment.

They are limiting the investment we have to make, or reducing even the operational costs, as they did in Spain, which I think if the demand is increased, and the infrastructure is difficult to maintain because they are not enough budget money for recognized, I think that is not easy to be electrified that one. Certainly, lower taxes in the electricity bills which will not be discrimination with gas.

I think in some countries in Europe, gas taxes is four times less than electricity. I think we have to be clear.

We would like depend of fuel, or we would like to electrify? We would like power, or we would like fossil?

That is we have to be coherent. I mentioned in the case of UK.

It's energy crisis, and they revised the taxation of electricity. We have to be just the opposite.

Even it's not affecting ourselves this one. I think something which is clear, those countries we have more penetration of renewables and nuclear have already lower structural prices.

Italy and Germany has higher prices than France and Spain, because they're less renewables, no nuclear, toward Spain or France, what you have more nuclear and more renewables than other one. I think that is a clear situation.

Next is totally linked with the answer you have recently given, what is your perspective on the proposed reform to the European electricity market, and how do you think policymakers should address the current price environment?

I think I repeat again. I think the measure proposed in this crisis show a clear change compared with 2022.

Governments in Europe agree that electrification is the solution. Electricity is not the problem, but is the solution.

All the measures should be directed against fossil fuels. I think ETS, in my opinion, is a key tool to promote Europe energy independence.

It has already proven it was well. It sent the right signals, and it has flexibility mechanism.

They have to be used the funds already obtained by the carbon emission for electrifying, not for making another uses in the national budget. That's why, for me, the structural solution, and that is what is proposing the European Commission, is accelerate an electrification with more renewables, with more grids, and with more storage, and more interconnections.

Next is, could you comment on your net debt expectation for 2026, including the main drivers versus year-end 2025?

Yes, we are expecting to end the year with a level of debt of around €55 billion, basically driven by the strong investments that we are doing. We are, as the Chairman has said, another year in record of investment, and obviously dividend is also increasing, increasing the debt, despite the FFO generation.

As we have mentioned, the asset rotation that we've done is almost finished. The other element that is affecting us a little bit is the FX impact, especially of the real, which is slightly higher than what we had expected.

In any case, the €55 billion is absolutely in line with the CMD and the plan that we have and the Capital Markets Day ratios expected, to be in a BBB+ ratio. Next,

is Iberdrola considering developing gas-fired power plant in the US, and how would this fit within the current growth priorities?

As our main business United States is networks. Is more than 80% of our business is related to networks.

Networks is already regulated by states, and I think we have a huge, let's say, prospect of investment in these states because of the needs of that one. Also, I think we see clearly is an increase in power demand, but this power demand, as well, is needed networks for taking this electricity in the home, in the industries, what they require for attending this latent demand.

I think, and as as Pedro was mentioned, we are focus in solar, in onshore wind, and in batteries. We have a huge pipeline, and we have a huge opportunities in repowering or extending life of the existing 11,000 MW in this moment in operation, and we will concentrate on that one.

Concentrating networks, first priority, and second, with our present pipeline and with our present portfolio of power in operation to increase our production using the existing assets, or making already new asset with the pipeline what we have in hands in this moment.

Next, could you comment on recent market speculation regarding offshore wind agreements involving other developers, and whether Iberdrola's approach to offshore contracting in the US is changing?

I think traditionally we are not making comments based in rumors or even uncertainties, but about our competitors. We have not details about that one, and if we have details, we will analyze what is exactly they are doing.

I think for the time being, the only thing is comments, but we have not already any certainty about all those things.

Next is, can you provide an update on how is the data center industry evolving in Spain and in other markets? How is the pipeline of projects in terms of viability and connection requests progressing?

As I mentioned several times,

our main customer worldwide are those which are already precisely working and using already data centers. We are already PPAs per annum more than 12,000 12 TWh, 12,000 GWh a year.

What we try always is to facilitate the expansion of this data centers to them. As our customer would like to use our capabilities, our knowledge, and our skills for helping to them to make that one.

Said that, I think is the fact, I think, in the last few months, we have already signed more than additional 100 GWh of new PPAs for this data centers use. That is certain is going to be very important driver of growth demand.

I think insist facilitating. We are some project in Spain, and we are already working on it, but I think the idea is to facilitate those one for our customers.

I think we have knowledge of the permit, we have land, we have connection, we have power, and that is what we are putting at the service of the customers. We are not making already an special business area on that one.

It's something which is helping to that one. Our business is to sell to them as much electricity as they need in the best condition as possible for the longer period of time as possible.

For that, I think we are doing our best for helping them to build the infrastructures they need for making already these data centers.

Next and last question is, what potential upside opportunities do you see versus your current plan 2026-2028 by geography and business area? Upside opportunities.

I think we are seeing more opportunities across all the countries, as I already mentioned in my presentation. I think the acceleration of electrification is a reality.

We are seeing an additional demand for several uses, apart of artificial intelligence, another one as well. I think in the case of US, we have additional demand of investment in the network infrastructures in all the state.

I think regulators is asking for this investment. Also, we are just making more investment in power.

I think as we have already add 1,300 new megawatt in US in the last 12 months, we have 700 under construction, and as Pedro mentioned, we have 11,000 MW of capacity, in which we have identified 3,000 or 4,000 for life extension or repower in the short term. Also, we are seeing increased interest in our large customers for expanding and extending the PPAs.

We are at present for making new ones. Also, we are seeing opportunities in battery storage.

We have announced the first one in Oregon, but we will follow another ones in the near future. In the UK, I think we have already the RIIO-T3, the final determination is better than expected, is higher totex, is up to €14 billion.

I think is slightly increasing the rate of return, is faster, that is important, cash recovery. I think also as I mentioned as well, the new offshore wind auction, AR8, this year, we have already just one project which is ready with all the supply chains already agreed and closed.

In Continental Europe, additional onshore and offshore project, I think this France announcing the new auctions for offshore, which I think in the terms could be attractive. We will analyze more in detail.

In Brazil, as I mentioned as well, once we sign this concession extension renewables for more than 30 years, I think new additional investment will be needed. I think also we have already a positive things, all the investment are recognized in annual basis, which will add already as much investment we are making in the year, following year will be recognized in our rate base and be paid.

In Australia, the things are moving. I think we have already a project in this moment in the design of transmission, and we have another one in the portfolio for making as well something in the future.

We are putting additional investment in generation, in battery storage. I think we are adding almost 100 MW in the last 12 months, and also in battery storage, we are already now project with large batteries, batteries just up to 8 hours, which I think that is going to be the record in a battery in our more than 600 MW portfolio.

That is going to be the largest one. I think those are the main things.

I think one thing is important is our pumping storage facilities, what we continue as well expanding. In this moment, as we have already in the short-term capacities, when I say short term, 20 hours or 25 hours, is something like 40,000 MWh capacity.

We have already another probably 100,000 MWh of longer periods of time, I think those one we are pumping to large dams that we use across the year. I think we avoided the water flows to the sea, and we are keeping these waters in our dams.

We are already almost every year putting two or three new pumping storage facilities in the country. I think in the last few months, we have already just put someone else in the Tajo River, and another one in the Tâmega River.

We continue in the Tâmega River, we are expanding as well. We continue making that one, because we consider pumping facilities is the most efficient manner, but in batteries as well, we are already investing.

We have already, as I mentioned, probably in this moment 2,000 or 3,000 MWh capacity, but I think we will expect to have to more than double that one in the next two or three years. Those are given a good opportunity, because the spreads are good, and nothing as much renewable being introducing, as more storage will be needed.

Same thing then as much demand is increasing, as much grid is needed, and that is what we are concentrating.

Okay. Now I hand the floor over to Mr.

Galán to close this event.

Thank you very much once again for taking part of this conference call. If there are any doubt, our investor relations, led by Ignacio, will be available for any additional information you may require.

Just to finish, our annual general meeting will be held in Bilbao on the 29th, and we invite to all of you to join us either in presence or just through the

delegation

no, or even connected by the web. Thank you and see you soon.

Thank you.