Ignacio Galán Reinforces Iberdrola's Organisational Structure By Setting Up Two New Departments


The Board of Directors, in its meeting held today in Bilbao, has approved the Chairman’s proposal


  • On 2 January, 2009, the Company will pay out an interim dividend of €0.143 per share corresponding to 2008 profits

The Board of Directors of IBERDROLA, in a meeting held today in Bilbao, approved the proposal presented by its Chairman, Ignacio Galán, to reinforce the Company’s organisational structure by setting up two new departments: an International Department and a Business Development Department.

The new International Department will be headed up by Amparo Moraleda, an industrial engineering graduate from ICAI, who immediately prior to this appointment was chairman of US multinational IBM’s subsidiaries in Spain, Portugal, Greece, Israel and Turkey.

The Business Development Department, meanwhile, will be headed up by Pedro Azagra, an ICADE graduate in business administration and law who has worked in IBERDROLA since 1997. In recent years, Mr. Azagra has been working on business development initiatives at the Company. There are no other changes to the Company’s corporate or business departments.

Separately, the Board has approved a 24.35% increase in the interim dividend to €0.143 per share (gross), corresponding to 2008 profits to be paid out on 2 January, 2009. This dividend will amount to around €700 million, compared to €560 million last year.

The agreement taken by IBERDROLA’s highest governing body is in line with the commitments of the Company to its investors and reflects the Group’s strong earnings momentum, underpinned by growth in new businesses and in the international division.

IBERDROLA’s shareholders will ultimately vote to approve the Board’s proposal for the total dividend corresponding to 2008 earnings at the General Shareholders’ Meeting, to be held in Bilbao in the first half of next year.

The Board of Directors also gave the green light to launching the fifth Dividend Reinvestment Plan (DRP), thereby again offering its shareholders the opportunity to reinvest their dividends in IBERDROLA shares.

Thanks to this plan, IBERDROLA’s shareholders will be able to conveniently and easily increase their shareholdings in the Company. One of the greatest attractions of IBERDROLA’s DRP lies with the fact that the purchase of new shares by existing shareholders is free of applicable settlement and brokerage fees, which are borne by the Company.

Shareholders who participate in the DRP will have to reinvest the entire dividend received (net) in IBERDROLA shares, as partial re-investments are not provided for. The new shares will carry the same voting and economic rights as those already outstanding.

IBERDROLA’s Dividend Reinvestment Plan was designed as a long-term program, and is therefore expected to continue to be available for additional dividend payments by the company in future years. Although all shareholders can participate in the DRP, this initiative is particularly targeted at its more than 450,000 minority shareholders who currently own around 30% of the Company.

The deadline for signing up for the DRP is 31 December

Shareholders can sign up for the DRP from tomorrow until Monday, 31 December at market closing. The Company’s shareholders, following the procedure established by their depository entity, are also entitled to cancel their orders to join the Plan within the same timeframe.

The price for purchasing the Company’s shares will be set at the weighted average ex-dividend price over the 5 working days of the trading sessions between 19 and 30 December inclusive. The number of shares to be received – the net dividend received divided by the purchase price – will be rounded down to the nearest whole number of shares and any surplus will be paid into the cash accounts of each shareholder signing up for the DRP.

Although IBERDROLA will bear the brokerage and settlement fees entailed in the share purchases, it will not assume the fees or commissions, if any, that depositories charge their clients for processing the reinvestment orders.


This communication does not constitute an offer of purchase, sale or exchange or a request for an offer of purchase, sale or exchange of values. The shares of Iberdrola S.A. cannot be offered or sold in the United States, except if this is carried out through a declaration of effective notification of what is laid out in the Securities Act or under the protection of a valid exemption of the need for notification.

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