Iberdrola : Consummation of the sale of a minority stake in the share capital of the owner company of East Anglia One offshore wind farm project

Julián Martínez-Simancas

Secretary of the Board of Directors

Bilbao, 2 September 2019

To the National Securities Market Commission

Subject: Consummation of the sale of a minority stake in the share capital of the owner company of East Anglia One offshore wind farm project

Dear Sirs,

Pursuant to article 227 of the restated text of the Securities Market Law, approved by the Royal Legislative Decree 4/2015, of 23 October (texto refundido de la Ley del Mercado de Valores, aprobado por Real Decreto Legislativo 4/2015, de 23 de octubre) and related provisions, we hereby inform you that, following the obtaining of the mandatory authorization by The Crown Estate, the transaction consisting of the sale by ScottishPower Renewables (UK) Limited, subsidiary company of the parent of the renewable business of the Iberdrola group in the United Kingdom, ScottishPower Renewable Energy Ltd., to Bilbao Offshore Holding Ltd., a company belonging to the group of which Macquarie Group Limited is the parent company, of a stake of 40% in the share capital of East Anglia One Ltd. ("East Anglia One"), owner of the offshore wind farm project East Anglia One in the United Kingdom, reported by way of relevant fact notice dated 12 August 2019 (registry number 281189) (the "Transaction"), was consummated on 30 August 2019.

The initial consideration for the Transaction is of approximately £1,630 million (around €1.800 million1), amount which is subject to the customary adjustments in this kind of transactions and which includes the pro-rata portion of the total investments to be carried out in order to complete the construction of the said offshore wind farm project. Therefore, the implied valuation of the Transaction, considering the 100% of East Anglia One, will amount to circa £4,100 million (approximately, €4,527 million1).

The Transaction, which is framed within the €3,500 million assets rotation strategy announced in the Investors Day held in February 2018 and updated in February 2019, will not have a relevant impact in the consolidated results of the Iberdrola group for fiscal year 2019.

This information is provided to you for the appropriate purposes.

Yours faithfully,

Secretary of the Board of Directors

• Calculated on the basis of the euro/pounds sterling exchange rate as of 30 August 2019, which was 1.104 euros per 1 pound sterling.

NOTICE: This document is a translation of a duly approved Spanish-language document, and is provided for informational purposes only. In the event of any discrepancy between the text of this translation and the text of the original Spanish-language document which this translation is intended to reflect, the text of the original Spanish-language document shall prevail.

www.iberdrola.com

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IMPORTANT INFORMATION

This communication does not constitute an offer to purchase, sell or exchange or the solicitation of an offer to purchase, sell or exchange any securities. 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 or pursuant to a valid exemption from registration.

NOTICE: This document is a translation of a duly approved Spanish-language document, and is provided for informational purposes only. In the event of any discrepancy between the text of this translation and the text of the original Spanish-language document which this translation is intended to reflect, the text of the original Spanish-language document shall prevail.

www.iberdrola.com

Take care of the environment.

Print in black and white and only if necessary.