• Both parties have signed a Strategic Memorandum of Understanding to collaborate on developing
respective business activities
• The Board of Directors of Iberdrola, S.A. has approved a capital increase of 6.17% and a sale of
treasury shares representing 0.37% of the share capital pre-increase
• Qatar Holding LLC through its wholly-owned subsidiary has invested €2,021 million to acquire all
such new and treasury shares for a total shareholding of 6.16% post-increase

Qatar Holding LLC and Iberdrola, S.A. are pleased to announce today that they have signed a
Strategic Memorandum of Understanding setting forth the framework for collaboration in developing
their respective business activities through the establishment of a long-term, mutually beneficial,
strategic partnership.

The two parties will cooperate for the purpose of developing new business opportunities in different
areas of the global electricity value chain with a focus on high-growth and emerging markets.
Iberdrola also intends to establish its regional Headquarters as well as research and development
operations in the State of Qatar.

Additionally, Qatar Holding through its wholly-owned subsidiary has fully subscribed to the 6.17%
capital increase approved by the Board of Directors of Iberdrola for a total investment amount of
€1,906 million. The issue price is €5.633 per Iberdrola share. Further, Qatar Holding through its
wholly-owned subsidiary has agreed to acquire treasury shares representing 0.37% of the share
capital of Iberdrola pre-increase, at the same price per share for a total purchase amount of €115
million. Consequently, Qatar Holding through its subsidiary will hold 6.16% of the share capital of
Iberdrola outstanding after the capital increase. The cash inflow from the capital increase will allow
Iberdrola to strengthen its financial position and pursue corporate transactions such as its proposed
merger with Iberdrola Renovables, S.A., the acquisition of Elektro Electricidade e Servicios, S.A. in
Brazil, and other growth opportunities.

Commenting on the transaction, Mr. Ahmad Mohamed Al-Sayed, Managing Director and Chief
Executive Officer of Qatar Holding, said: “We are pleased to announce this strategic transaction with
Iberdrola and look forward to a long-term partnership as outlined in our Memorandum of
Understanding. In addition to a strong, stable European franchise, our investment in Iberdrola
provides significant exposure to other important global markets including Brazil, Mexico and the
United States of America. As such, this investment represents a further step in our strategy of building
a diversified portfolio of leading global enterprises.”

Ignacio S. Galán, Chairman and CEO of Iberdrola, said: “I welcome Qatar Holding as a new major
shareholder and strategic partner of Iberdrola. Through this investment, Qatar Holding recognizes the
success of Iberdrola’s strategy. The Strategic Memorandum of Understanding represents the first step
of a long-term relationship that will support each other’s future development”.

  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.

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 forwardlooking
information and statements. These risks and uncertainties include those discussed or
identified in the public documents sent by Iberdrola, S.A. to the Comisión Nacional del Mercado de
Valores.

Forward-looking statements 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 forwardlooking
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.

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