Neoenergia S A : Comunicado ao Mercado

Capital Markets & ESG Day

21 March 2024

Legal Notice

Capital Markets & ESG Day

Disclaimer

• This document has been prepared by Iberdrola, S.A. exclusively for use during the presentation "Capital Markets & ESG Day" on March 21, 2024. As a consequence thereof, this document may not be disclosed or published, nor used by any other person or entity, for any other reason without the express and prior written consent of Iberdrola, S.A.
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Important information

• This document does not constitute an offer or invitation to purchase or subscribe for shares, in accordance with the provisions of Regulation (EU) 2017/1129 of the European Parliament and of the Council, of 14 June 2017, on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC and its implementing regulations.
• In addition, this document does not constitute an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, nor a request for any vote or approval in any other jurisdiction.
• The shares of Iberdrola, S.A. may not be offered or sold in the United States of America except pursuant to an effective registration statement under the Securities Act of 1933 or pursuant to a valid exemption from registration. The shares of Iberdrola, S.A. may not be offered or sold in Brazil except under the registration of Iberdrola, S.A. as a foreign issuer of listed securities, and a registration of a public offering of depositary receipts of its shares, pursuant to the Capital Markets Act of 1976 (Federal Law No. 6,385 of December 7, 1976, as further amended), or pursuant to a valid exemption from registration of the offering.
• This document and the information presented herein was prepared by Iberdrola, S.A. solely with respect to the presentation "Capital Markets & ESG Day" on March 21, 2024. The financial information contained in this document has been prepared and is presented in accordance with the International Financial Reporting Standards as adopted by the European Union ("IFRS").
• In addition to the financial information prepared under IFRS, this presentation includes certain alternative performance measures ("APMs"), for the purposes of Commission Delegated Regulation (EU) 2019/979, of March 14, 2019 and as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority on 5 October 2015 (ESMA/2015/1415es). The APMs are performance measures that have been calculated using the financial information from Iberdrola, S.A. and the companies within its group, but that are not defined or detailed in the applicable financial information framework. These APMs are being used to allow for a better understanding of the financial performance of Iberdrola, S.A. but should be considered only as additional information and in no case as a substitute of the financial information prepared under IFRS. Moreover, the way Iberdrola, S.A. defines and calculates these APMs may differ from the way these are calculated by other companies that use similar measures, and therefore they may not be comparable. Finally, please consider that certain of the APMs used in this presentation have not been audited. Please refer to this presentation and to the corporate website (www.iberdrola.com) for further details of these matters, including their definition or a reconciliation between any applicable management indicators and the financial data presented in the consolidated financial statements prepared under IFRS.

Legal Notice

Capital Markets & ESG Day

Important information

• This document does not contain, and the information presented herein does not constitute, an earnings release or statement of earnings of Avangrid, Inc. ("Avangrid") or Avangrid's financial results. Neither Avangrid nor its subsidiaries assume responsibility for the information presented herein, which was not prepared and is not presented in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP"), which differs from IFRS in a number of significant respects. IFRS financial results are not indicative of U.S. GAAP financial results and should not be used as an alternative to, or a basis for anticipating or estimating, Avangrid's financial results. For financial information regarding Avangrid, please visit its investor relations website at www.avangrid.com and the U.S. Securities and Exchange Commission ("SEC") website at www.sec.gov.
• This document does not contain, and the information presented herein does not constitute, an earnings release or statement of earnings of Neoenergia S.A. ("Neoenergia") or Neoenergia's financial results. Neither Neoenergia nor its subsidiaries assume responsibility for the information presented herein. For financial and ESG information regarding Neoenergia, please see the Neoenergia's investor relations website at https://ri.neoenergia.com/ and the Brazilian Comissão de Valores Mobiliários ("CVM") website at www.cvm.gov.br.

Forward looking statements

• This communication contains forward-looking information and statements about Iberdrola, S.A., including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Forward-looking statements are statements that are not historical facts and are generally identified by the words "expects," "anticipates," "believes," "intends," "estimates" and similar expressions.
• Although Iberdrola, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Iberdrola, S.A. shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Iberdrola, S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the documents sent by Iberdrola, S.A. to the Spanish Comisión Nacional del Mercado de Valores, which are accessible to the public.
• Forward-lookingstatements are not guarantees of future performance. They have not been reviewed by the auditors of Iberdrola, S.A. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were made. All subsequent oral or written forward-looking statements attributable to Iberdrola, S.A. or any of its members, directors, officers, employees or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included herein are based on information available to Iberdrola, S.A. on the date hereof. Except as required by applicable law, Iberdrola, S.A. does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
• Iberdrola, S.A. commits to carrying out its best efforts to achieve its ambition of carbon neutrality for its Scope 1 and 2 in 2030. For these purposes, it will align its strategy, investments, operations and public positioning with this ambition. Additionally, Iberdrola, S.A. is also committed to undertake the energy transition in a way that creates value for its shareholders, employees, clients, suppliers and the communities where it operates. Accordingly, Iberdrola, S.A. reserves the capacity to adapt its planning to successfully face its performance in key material aspects such as the value of Iberdrola, S.A., the quality of supply or the social, labor, and fair transition conditions. The abovementioned commitments are of aspirational nature.

www.iberdrola.com | 3

Strategic Vision

Ignacio S. Galán

Executive Chairman

Capital Markets

& ESG Day

Energy outlook

www.iberdrola.com | 5

Energy Outlook

Capital Markets & ESG Day

Electrification is unstoppable…

Self-sufficiency	Efficiency	Competitiveness	Decarbonisation
…increasing energy security	…the only viable route

Transport				Digitalization
Elec: Road		Heating &	& Data
Electricity
Industry Green H2	Gr H2:Marine, Air	Buildings	Cooling
		(Domestic & Ind)
Customer value &	New Industries		More
experience	Affordability

Data, Cloud & AI

…driving new sources of demand

www.iberdrola.com | 6

Networks: the enabler of the energy transition

Capital Markets & ESG Day

Networks investments need to double by 2030

SMARTER AND MORE RESILIENT NETWORKS…

More security of	•	Safe • Reliable • Flexible • Digitalized
supply
	•	Integration of new onshore renewables
Renewable	•	Connection of new offshore wind projects
penetration	•	Self-consumption

• Reduction of congestion costs

…WITH ADDITIONAL INVESTMENTS AS NEW USES TAKE PLACE

Electric vehicle

Heat pumps

Data Centres

Annual networks investments1

				1,081
					Bn $
						Additional
			x3			investment in
					the high
						scenario
			679		875
			Bn $		Bn $
						Investment in
	330 x2	620
	Bn $			the low
			scenario
	Bn $

2022 2030 2040

1 Eur of Networks for 1 Eur invested in renewables (1.25 Eur in advanced economies)

1. Based on data from IEA WEO 2022-'23: Total Global Final Energy Consumption	www.iberdrola.com | 7
Low scenario: International Energy Agency's Announced Pledges Scenario; High scenario: IEA's Net Zero Emissions

Transformation of the Electricity Mix

Capital Markets & ESG Day

Acceleration of renewable deployment to replace fossil fuels and cover new demand…

Power Demand (TWh)

Installed Capacity (GW)

…in Advanced Economies…

2022		2030
~10,000	+1.7% per	~11,500
annum
Renewables		~5,600 GW
Fossil Fuels	1.5x
Nuclear	300
~3,600 GW		1,200
Fossil fuels
300	-500

1,700 Renewables 4,100

+2,500

1,600

2022

2030

• Full coal/oil closure by 2030 (500 GW in US & Europe)
• Replacement of coal/ageing gas with renewables and new gas (mainly in the US)
• Start of replacement of first renewable projects (repowering opportunity)

2030 Outlook based on IEA APS Scenario

…and in Developing Countries

2022		2030
~14,750	+3.2% per	~19,000
annum
		Renewables	1.8x	~9,200 GW
		Fossil Fuels	200
		Nuclear
			2,800
		~5,000 GW	Fossil fuels
150
-50
2,850	Renewables	5,800
2,000	+3,800
2022		2030

• Gradual substitution of coal/oil with new gas (average age of existing coal 10-15years)
• Significant expansion of renewables

www.iberdrola.com | 8

Wholesale markets

Capital Markets & ESG Day

…driving a deep change in wholesale markets: Non-manageable renewables will require other technologies to balance supply and demand at all times…

Spain 2023 - Average generation mix

Pumping &

Exports

System Demand

Peak Thermal

Storage

Non Manageable Renewables Manageable renewables

Base Thermal

Exports

Pumping

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: ENTSO-e, OMIE

Spain 2030 - Average generation mix

Pumping &

Exports

System Demand

Peak Thermal

Storage

Non Manageable Renewables

Manageable renewables

Base Thermal

PumpingExports

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

www.iberdrola.com | 9

Wholesale markets: Value of manageable renewables and storage

Capital Markets & ESG Day

…increasing the value of storage in daily, weekly and seasonal cycles…

			Storage Weekly Cycle1
			>4 energy
			generation hours
•	Energy mix
	leading to more	Generation
	intraday price
	volatility
•	The number of
	prolonged
	periods (>4	Pumping
	hours) of lower	>4 energy
	prices is		storage hours
	increasing		Average daily price
		Weekend	Weekdays
		Pumping	Generation

Pumped Storage

• Ability to store energy for more than 18 consecutive hours
• Capacity to modulate daily, weekly and seasonal cycles
• Provide ancillary services

Battery Storage

• Short-termarbitrage: 2 to 4h
• Provide ancillary services

…and maximizing competitive advantages of manageable renewables and pump storage

1For illustrative purposes. Source: Iberdrola's information

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