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 EUR 4,336 million, and adjusted net profit up 8% to EUR 3,565 million, reflecting a strong operating performance up to June. Adjusted EBITDA rose by 7% to more than EUR 8 billion, driven by Networks up 13% due to tariff increases and higher asset buys in all geographies.

Adjusted EBITDA in Power & Customers increased 1% due to higher production and margin, especially in the second quarter, and the contribution of Spanish storage, which already accounts 35% in our total hydro generation. Investment rose by 25% to more than EUR 7 billion, with 72% allocated to U.K., the U.S., 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 EUR 55 billion. In Power & 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 U.S.

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 Networks investment, as well as several incentive reduced taxation on electricity and a new Electrification Action Plan, with very ambitious targets to double electrification rates.

The U.K. 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 years was signed, reaffirming the country's attractive regulatory outlook for the coming years, supporting our recent acquisition of Neoenergia Minorities for EUR 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 debt ratio of 22.4% and a liquidity of more than EUR 21 billion.

As you know, yesterday we announced the acquisition of Caruna Networks, the largest electricity distribution company in Finland, with an enterprise value of EUR 5 billion. Under the agreement, we will acquire 80% of the equity Caruna for EUR 2 billion, which EUR 1 billion will be paid in 30 months, and the remaining 20% stake will continue in hands of two Nordic investment and pension funds.

Caruna operates two distribution areas with major activities around Helsinki, the main growth 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 within an asset base of EUR 2.5 billion.

That serves to more than 20% of the electricity consumers in Finland, a country with AA+ rating in the 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 operators estimate demand growth between 22%-45% up to 2030, which will require a strong increase in generation.

For instance, the system operator estimates the wind capacity will multiply by more than 3x 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 conditions, including an average return on equity around 8%, to give you an example above Spain.

The transaction will also have positive impact in our results and growth prospects. It will be accretive from day one, we expect a sustained and long-term growth of around 7% per annum in the net income, thanks to additional investment up to between EUR 200 million and EUR 300 million per annum.

With further upside due to electrification, the expansion of data centers, and the possibility of the low 400-kV transmission lines opened by the Finnish regulator earlier this year. Finally, given its size, its regulated 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 prospects. Coming to the numbers of the presentation.

Adjusted EBITDA increased by 7% to EUR 8,050 million, supported by a stronger performance in the second quarter compared to the first quarter. Networks adjusted EBITDA reached EUR 4.2 billion in the first half, up 13% compared to 9% increase registered in the first quarter.

In Power & Customers registered an adjusted EBITDA of EUR 3,100 million, up 1% year-on-year, driven by positive dynamics in the second quarter. By geography, in the U.K., EBITDA rose by 14%, supported by the higher contribution of transmission following the beginning of RIIO-T3, as well as a strong increase in production up to 27% thanks to the onshore and offshore wind.

In the U.S., excluding the one-off impact of network's 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 90%, driven by tariff increases in distribution and the new transmission line in operation, as well as the good performance of Power & 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 levels 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 12% 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 EUR 106 million as of June on our operating result.

This means that excluding this effect, the increase in EBITDA will have reached 9%. Investment in the first six months was up 25% to EUR 7 billion, with 72% in the U.K., the U.S., and Brazil.

30% of the total investment were made in U.K., mainly transmission and distribution networks, 70% in the U.S., 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 in Australia, other E.U.

countries remaining 13%. By businesses, Networks continued to be our main investment destination, accounting for nearly 2/3 of the total to reach EUR 4.4 billion, up to 42% year-on-year, mainly driven by U.K., which represent 1/3 of the total Networks investment after 43% increase driven by transmission.

The U.S. account by 22% of the total as ongoing investment in distribution partially offset the impact on NECEC project once it's completed.

The contribution of Brazil reached 14%, including EUR 1.1 billion due to the acquisition of the minorities, as mentioned, Spain represented 7% of the total investment. As a result, our regulated asset base rose by 11% year-on-year to EUR 55 billion, thanks to the double digit increases registered in the U.K., U.S., and especially Brazil, where RAB rose by 18%.

Transmission was once again the key growth driver, with RAB up 30% in year-on-year, driven by RIIO-T3 in the U.K., NECEC in the U.S., and the completion of the last transmission lots in Brazil. Distribution RAB increased by 6% to EUR 40 billion, well spread among geographies.

Investment in renewables reached EUR 2,234 million, with 72% allocated in wind, including EUR 700 million in offshore, mainly in East Anglia TWO and THREE in the U.K., Windanker in Germany, and Vineyard Wind 1 in the U.S., and more than EUR 900 million on onshore wind, mainly in the other European countries and Australia. We also invested around EUR 330 million in solar PV and EUR 300 million in storage and others.

All in all, up to June, we have put in service 1,600 MW. 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 U.K. We have another 2.2 GW already under construction, 2/3 in U.S.

and U.K., +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. Another 4 GW in advanced development that could be ready by the end of the decade.

This means the capacity addition by 2030 can reach up to 15.5 GW, a significant uplift versus 9.5 GW between 2025 and 2028 included in our plan. This increase 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.

In the European Union, only in the last few weeks, the Commission has published an ambitious European Grids Package to increase Networks investment through faster permitting and additional incentives. The Electrification Action Plan, which sets a specific electrification target of 43% by 2040, doubling current levels in just 50 years, which could also mean multiplying total demand by two 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 and electricity. In line with several Commission recommendations attached recently published in the U.K.

RIIO-ED3 continuous progression as schedules with Ofgem framework decision already published. The independent system operator has issued an updated plan beyond 2030, showing the Networks 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 in the next five years to BRL 50 billion, which represent EUR 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 U.S., 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, 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 are reflected in new auctions in generation storage and transmission. In terms of financial profile, our FFO net debt ratio reached 22.4%, net EBITDA is 3.5x, fully consistent with our BBB+ rating.

Our liquidity stands at EUR 21.5 billion, covering 20 months of financial needs. As you know, our last AGM approved a dividend per share corresponding to 2025 result of EUR 0.685, equivalent to total dividend payment of EUR 4.5 billion, 12% more than previous year.

Accordingly, next Monday, we will pay EUR 0.427 per share as supplementary dividend. The average vote received in AGM was 97.9% with a quorum of 73.6%.

Let me thank all our shareholders once again, for their participation and support. Now you, Pepe, explain the result in more detail.

Thank you.

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

The first half reported net profit grew 22% to EUR 4,336 million, the adjusted net profit grew 8% to EUR 3,565 million, supported by a 7% increase in adjusted EBITDA to EUR 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 guide and 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 under the equity line.

As a consequence, in the second quarter, we have excluded the positive capital gain of EUR 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, U.K.

capital allowances are adjusted at net profit level in 2025 and 2026. Finally, U.S.

past cost recognition in 2025 is excluded from the adjusted net profit of that year. EUR 530 million gross, EUR 389 million net, in line with the definition applied in our 2025 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 U.S.

past cost in the first half of 2025. 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, EUR 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 EUR 71 million. ENW is included for the whole first semester versus last year that was accounted from March onwards.

Net personnel expenses increased 7.7% as the second quarter of 2025 included some positive non-recurring impacts. External services grew 2.6%, other operating income improved by 40%.

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

These investments in Networks are making electricity available for household and industries, which is critical for the future of the economy and energy independence. In the U.S., IFRS-adjusted EBITDA increased 19% to $1.2 billion, excluding the $550 million past-cost recognition booked in the first half of 2025, 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 U.K., EBITDA increased 24% to GBP 924 million, with increasing contribution from transmission driven by the new RIIO-T3 framework in place from April 2026 onwards, and higher contribution from ENW versus last year as consolidation started in March 2025, while in 2026 is consolidated for the whole first half.

In Brazil, EBITDA grew 7.1% to BRL 7.2 billion, 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 EUR 154 million, driven by the new regulatory framework and adjustments from past years.

First half 2026 Power & Customers business EBITDA reached EUR 3.8 billion and grew 1%, improving 3% fall at March, thanks to Spain and the U.S. 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 EUR 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 U.K., EBITDA increased 11.9% to GBP 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 U.S., 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 2025. In the rest of the world, EBITDA decreased 18% to EUR 337 million, affected by the sale of Hungary and France, lower power prices, and higher ancillary services cost in Portugal.

In Brazil, EBITDA increased to BRL 661 million, with higher contribution from the client business, partially offset by lower renewable contribution. Depreciation and amortization and provisions grew 2%, reaching to EUR 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 EUR 5,226 million.

Excluding the EUR 52 million adverse FX impact, growth would have reached 12%. Net financial results increased by EUR 508 million to EUR -1.1 billion, mainly driven by the negative derivative impacts, especially in the second quarter, reflecting the Q2 2025 East Anglia THREE positive one-off of EUR 282 million and FX hedges linked to exchange rates as they were positive in 2025 and negative this year.

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

Excluding the real, debt cost fell three basis points to 3.5%. Net debt increased EUR 3.8 billion versus full year 2025 to EUR 54 billion, mainly reflecting the high rate replacement and currency appreciation.

The evolution also reflects the strong effort in CapEx, including a EUR 1.1 billion acquisition of 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 3.5x.

The adjusted FFO versus adjusted net debt reached 22.4%. Our adjusted leverage ratio was 45.3%, improving the 46.8% in the first half of 2025.

First half 2026 adjusted net profit grew by 8% to EUR 3,565 million, compared to the EUR 3,308 million in adjusted net profit in the first half of 2025. Excluding the EUR 109 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 EUR 1 billion capital gain from the Mexico transaction recognized in Q2, partially offset by capital allowances in the U.K. Neoenergia Minority shareholder purchases had added EUR 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 prospect for the next six months reinforce our positive outlook for the year.

As of June, all our businesses have a positive evolution, especially in the second quarter, with Networks EBITDA growing 13% thanks to a higher regulated assets base and tariff increase in our geographies. In Power & Customers, 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 over the second half of the year, driven by a further increase in our regulated base in Networks, mainly in transmission, the positive impact of a new regulatory framework like RIIO-T3 in the U.K., and the full contribution of Neoenergia at net profit level after the acquisition of the minorities. In Power & Customers, we expect to have 2.1 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 allows 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 U.S., the U.K.

or Brazil, and in Power, mainly in the U.S., 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 AA+ rate 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. We have always demonstrated our capacity to materialize our value creation expectation.

Now, we will be more than happy to answer your questions you may have. Thank you.

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

We have a strong performance in the U.K., in the U.S., and Brazil. In the U.K., we have higher contribution from Electricity North West, consolidated since March 2025.

Increasing contribution from transmission. Started RIIO-T3 in April.

In the U.S., higher rates, contribution of NECEC interconnection between Canada and Massachusetts from January. In Brazil, increasing revenues in distribution due to better tariff, and a higher contribution from transmission after finalizing all lots in the recent revision of rates as well.

Power, higher production in the U.K., U.S., and European countries. We expect this trend to continue the rest of the year.

In Iberia, we have a strong hydro production, especially in pump into storage. Already, as Pepe mentioned, it represent close to 35% our total production, with an improvement in margins.

Positive impact of the 100% acquisition of Neoenergia. That means the adjusted net profit 8% or 14% excluding FX impact.

As I was mentioning, if the trend continues, perhaps after the summer, we can give even better news for you.

I think it's same thing I mentioned. I think we expect positive dynamics in second quarter that could continue the rest of the year.

In network, the regulator asset base continue increasing. New frameworks with better rates in RIIO-T3 from April, better tariff for countries, additional contribution from 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.

Pepe mentioned 8.3 GWh. Improving margins to the pump hydro.

The volatility of the price helped to us. Improving effects.

We expect improving effects dynamics after negative impact record in the first half. Additional operating efficiencies was mentioned.

That's why I continue repeating that we are comfortable reaffirming our guidance for more than 8% growth in the 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 in U.S. or Elektro in Brazil.

We are a long-term industrial investor. We are not really speculative investors.

We see opportunities that probably another one has not seen. As we have demonstrated in these opportunities we are seeing, we are able to materialize.

That already happened in cases like in U.K., you see the good result, or U.S., 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, in a country in power generation, fossil power generation, into clean Networks operations regulated. The transaction as well will be accretive since day one, which I think is not normal in this type of transaction.

The company expects 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 you know we are investing on the range of EUR 14 billion-EUR 15 billion per annum, I think that represents less than EUR 5 billion, which I think is relatively small compared with the rest.

Pepe, you reply that one.

Well, I think it's quite simple. Caruna has a net income, after the net income, we are expecting that to be around EUR 150 million in 2027.

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. We are looking to the net income, which corresponds to the equity that we are putting there, and that is what justifies the 16 times that we are paying.

I think.

Well, yeah. Okay.

I think we are progressing in the implementation of the initiative. We already presented you as well as some others.

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

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

I think that is going on.

You asked for?

Okay. Yeah, I see.

I noted, yes. We are already better than our plan in terms of investment and results.

Just to give you a few examples. In the U.K., RIIO-T3 final determination, it was better than planned and expected.

We higher TotEx, is GBP 1.1 billion, with a better return and faster cash flow recovery. In the U.S., the higher demand is driving additional investment in infrastructures.

For instance, we are already in this moment in transmission with the project of Powering New York, which is a project which includes EUR 4.2 billion CapEx. In generation in United States, repowering, life extension, new asset, our plan includes around 2,000 MW in 2025-2028, but we have already installed 1,400 MW.

We have another 800 MW under construction, 450 MW more we will be installing 2028. That means that is 30% more above our plan in the U.S.

On top of that, we have another close to 1,800 MW project which will be 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 BRL 50 billion, which is around EUR 9 billion, which is nearly double investment we make in the last five years with very attractive returns.

In any case, I think we are working in our review of our long-term plan, and we will share you the information the next capital market day that will take place next year as usual.

Andy Burnham is not new for us. As you know, we know him from his times as Mayor of Greater Manchester, where we have the distribution service area.

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 of VAT and electricity, not in gas. Which I think that is what the European Union is saying, that it would been claiming for years.

If we 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 are doing. We are aligned very much with our plan, I think we know well his team, I think we have already worked very well from our position as a distributor in the Manchester area, as well, he was already the mayor in the last few years.

As you know, 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 in the trends and ambition of the country to electrify areas which now they are not enough electrified. That, or the areas certain is this booming area of Bahia.

I've seen another, but I think this was in Bahia, in the Western part of Bahia. I think the trend of this CapEx will continue, the electrification will continue, and that allow us to double the level of investment we've been making up to now.

As you know, the returns there are very attractive with ROEs on the high-two digits, and very positive regulatory framework, very stable, very predictable. With rules that we know very well from the more than 20 years we have present in the country.

We have not changed our positions in the day one. As I mentioned, anytime, I'm 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 the adequate one, with a lack of synchronous units program, despite the fact they were available.

I think I can understand the blackout if there are no power available. If there are 4x 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 that has been taken, all report investigation, audios, etc.

The fact, I think that is very clear, after the blackout, Red Eléctrica has decided to modify the 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 are another thing as well.

With the CNMC, the regulator, has published a report last May, pointed that there 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 optimization of the valuable resources focusing security supply. I think that is not my word.

That is the CNMC, the regulator, has already talking about this conflict between transmission owner and system operator, which are two different things. The role, the fact, is separating in other jurisdiction, where we have already presence, like U.S., U.K., or Brazil.

I'm sure then 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 U.S. more than initially planned, driven by the increase in demand and the good condition of the PPA market.

As I mentioned, we have more than Perhaps, Pedro, you can already reply the details of that one. More than 100, I think, megawatt in construction.

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

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

Some competitors is talking about increased capacity in the U.S. In our case, I can assure, and I think that is the work we are 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. I mentioned already, for instance, New York, we already agree with the regulator the level of investment and the new tariff will be retracted to May, as we had already done in the past, and we will continue negotiating the rest of the term.

I think that is the normal way how we work. I think we work, we negotiate, and whatever things we agree has already retroactive from the date with another rate case is passed.

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 MW, if I don't remember, of renewables, I think mostly in wind. We said then the renewables are intermittent, is needed storage for storing the excess of electricity when there are not enough demand, and for providing this electricity when that is needed.

That makes ourselves to transform. Most of our hydroelectric power plants are reversible.

The fact today, we have 4,400 MW of hydro pumping storage with a capacity between 2000 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 you know, I'm coming from the sector of batteries. I spent 70 years of my professional life designing, manufacturing, and selling batteries worldwide.

We're not lithium battery, we are nickel-cadmium, or we are lead-acid batteries. I think I'm very familiar with batteries because it's part of my background.

We are investing in batteries, especially in market, we have no possibilities of making hydro pumping. In countries also, we have attractive regulatory frameworks.

For instance, in Australia, we have already 320 MW, which is 640 MWh installed. Another 270 MW, which is 150 MWh, under construction.

We have some mature project as well for another one with 100 MW of capacity. In U.K., we have as well an installed battery with 250 MW, which has a capacity of 200 MWh.

We have a quite long developing pipeline. In U.S., we installed the first battery storage project at this moment in Oregon, with 80 MWh, and we expect to start other as well soon.

In Spain, we are the leader, we have 212 MW installed with this 420 MWh and 245 MW under construction. I think we are in countries.

I think if we compare all these numbers, which is few hundreds of megawatt-hours compared with the capacity we have for the hydro pumping, it's peanuts. I think 120,000 MWh is equivalent of 60,000 MW of normal batteries of two hours capacity, or 30,000 MW of four hours capacity.

It's a huge capacity, 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 the new times of the company.

Pepe?

Well, the net debt is probably going to be around EUR 56 billion. Basically, it's slightly higher than we had in the plan, but driven by the appreciation of the currencies from the beginning of 2025.

Although the currencies, the dollar, especially the dollar, and the real are lower than the average, are lower than last year, they are higher than the beginning of this year. That is having already an impact in the debt, as you can see in the presentation.

On the other side, it would be good news for the FFO generation for 2027. This is more or less around EUR 56 billion, where we are expecting to close the year.

Pedro?

I think we remain the market leader in terms of energy supply, 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 Niba, 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 tariffs in Spain.

I don't know if I mentioned before, we know that this is 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 the U.S., we have 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 equipment which 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 Networks, as you recognize, by several government, I think recently by European Commission.

There, a special directive related to Networks. Which I think is absolutely new because traditionally, make directive about clean energy, about renewable, et cetera, is especially made for the need of Networks in all countries for achieving this availability of energy and reliability.

If you go to reduce electricity price for consumers, the easiest and fastest way is to reduce taxes and charges than to their incurred energy bill, the electricity, especially. That is what European Commission is recommending.

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 the countries where they are fully dependent of the imports. We are penalizing the local production for subsidizing or penalizing less that one which imports.

It's absolutely needed to revise the taxation of electricity. If we would like to electrify the economy, if we 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. With this last question, I now hand again the floor over to Mr.

Galán to close the event.

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

If we have not already opportunity of meeting, I will say 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.