Table of Contents
DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
METHODOLOGY 1
ANALYSIS
2
European Utilities Key Player Profile: Iberdrola 2
Datamonitor' s Key
Player Scorecard examines 31 leading utilities drawn from across Europe' s
competitive arenas 4
Key Players dominate power generation capacity market
share in the Wmed competitive arena 5
Key Players dominate power
generation output market share in the Wmed and CEE competitive arenas 6
Despite ongoing industry consolidation, in no competitive arenas do Key
Players dominate power supply volume market share 7
Despite ongoing
industry consolidation, in no competitive arenas do Key Players dominate gas
volume market share 8
The Key Player Scorecard assesses utilities across
four pillars: Performance, Scale, Growth and Exposure 9
The Performance
pillar combines 5 financial metrics to measure business performance 10
The
Scale pillar combines financial and operational metrics to measure the size of
a utility 11
The Growth pillar measures the rate of growth of a utility' s
financial and energy resources 12
The Exposure pillar combines both
operational and financial measurements of risk 13
Iberdrola scores
35.7/100 on Datamonitor' s European Utility Scorecard and ranks 11 out of the
31 Key Players covered 14
Iberdrola' s overall ranking is above the Key
Player average 16
Iberdrola achieves an overall ranking of 11, with a
utility score of 35.7 21
Iberdrola' s overall ranking is helped by its
strong Performance and Exposure Scores 22
Iberdrola has a high level of
Performance, and a slightly below average level of risk (above average
Exposure score) 23
Iberdrola scores the Key Player average in Growth, but
is slightly ahead in Scale 24
Iberdrola scores well on operating profit
margin and return on energy volume, for a Performance ranking of 4 25
Iberdrola' s overall financial Performance score is 15.1, surpassing the Key
Player average of 10.9 26
Iberdrola' s operating profit margin is double
the Key Player average 27
Iberdrola lags in return on investment, but has
very a strong return on energy volume 28
At 13, Iberdrola ranks just above
the Key Player average in the Scale pillar 29
In terms of Scale Iberdrola
ranks 13, pulling ahead of the Key Player average on the generation capacity
metric 30
In generation capacity Iberdrola ranks 8 with 25 GW 31
Iberdrola' s power volume is 1.7 times its gas volume 32
Iberdrola has a
5.2% share of Key Player power customers 33
At 38.9 TWh, Iberdrola ranks
17 in terms of power supply volume 34
Iberdrola' s share of the gas market
is negligible, with less than one percent of Key Player gas customers 35
Iberdrola' s Key Player gas supply volume market share is less than one percent
36
Iberdrola ranks 14 in both revenue and net income 37
Iberdrola
scores below average on financial metrics, but above average on energy volume
metrics, for a Growth ranking of 16 38
Iberdrola falls well below the Key
Player average on operating cash flow and profit growth metrics, for a Growth
ranking of 16 39
Iberdrola' s price earnings ratio of 15 is in line with
the Key Player average, despite a much higher operating profit margin 40
From 2001 to 2005, Iberdrola' s annual profit growth (8.8%) was slightly ahead
of its revenue growth (7.6%) 41
Iberdrola' s operating cash flow (-37.8%)
has dropped from 2004 to 2005, as gas (26.6%) and power (11.4%) volume has
grown 42
Iberdrola' s near top power NTR pulls its Exposure ranking above
the Key Player average, to 14 43
Iberdrola outperforms the Key Player
Exposure average only on power NTR 44
Iberdrola' s power NTR is 70.6% of
its power supply volume obligations 45
The company has no equity gas
holdings, resulting in a -100% gas NTR 46
Iberdrola is highly leveraged,
with debt at 1.3 times its equity 47
Amongst all Key Players, Iberdrola
ranks 23 in terms of debt leverage 48
Iberdrola' s cash flow growth has
fallen dramatically as energy volume has increased 49
Within Europe,
Iberdrola' s operations are focused in Spain 50
Hydro is Iberdrola' s main
generation capacity fuel type 51
Spain accounts for the bulk of
Iberdrola' s power sales 52
As with its power sales, Spain is the main
market for Iberdrola' s gas sales 53
Iberdrola' s generation capacity is
focused almost entirely in Spain 54
Iberdrola has a market share of 5.2%
of Key Player power customers 55
Iberdrola has a market share of less than
one percent of Key Player gas customers 56
APPENDIX 57
Databook 57
Definitions 76
Datamonitor Consulting 76
List of Tables
Table 1:
The Key Players are drawn from across a diverse range of markets 3
Table
2: The Performance pillar combines 5 financial metrics to measure business
performance 10
Table 3: The Scale pillar combines financial and
operational metrics to measure the size of a utility 11
Table 4: The
Growth pillar measures the rate of growth of a utility' s financial and energy
resources 12
Table 5: The Exposure pillar combines both operational and
financial measurements of risk 13
Table 6: Iberdrola scores 35.7/100 on
Datamonitor' s European Utility Scorecard and ranks 11 out of the 31 Key
Players covered 15
Table 7: Iberdrola scores 15.1/25 on the Performance
pillar, and ranks 4 out of 31 on this measurement 17
Table 8: Iberdrola
scores 2.8/25 on the Scale pillar, and ranks 13 out of 31 on this measurement
18
Table 9: Iberdrola scores 8.8/25 on the Growth pillar, and ranks 16 out
of 31 on this measurement 19
Table 10: Iberdrola scores 9/25 on the
Exposure pillar, and ranks 14 out of 31 on this measurement 20
Table 11:
Iberdrola scores well on operating profit margin and return on energy volume,
for a Performance ranking of 4 25
Table 12: At 13, Iberdrola ranks just
above the Key Player average in the Scale pillar 29
Table 13: Iberdrola
scores below average on financial metrics, but above average on energy volume
metrics, for a Growth ranking of 16 38
Table 14: Iberdrola' s near top
power NTR pulls its Exposure ranking above the Key Player average, to 14
43
Table 15: Return on fixed assets 57
Table 16: Return on sales
58
Table 17: Operating profit margin 59
Table 18: Return on energy
volume 60
Table 19: Return on investment 61
Table 20: Generation
Capacity / EU25 market total 62
Table 21: Power Supply Volume / EU25
market total 63
Table 22: Gas Supply Volume / EU25 market total 64
Table 23: Net income / Net income of 94 leading utilities 65
Table 24:
Revenue / Revenue of 94 leading utilities 66
Table 25: Revenue growth,
2001-2005 CAGR 67
Table 26: Profit growth, 2001-2005 CAGR 68
Table 27:
Growth in operating cash flow, 2004 to 2005 69
Table 28: Gas supply volume
growth, 2004-2005 70
Table 29: Growth in power supply volume, 2004 to 2005
71
Table 30: Power NTR / Power supply volume 72
Table 31: Gas NTR /
Gas supply volume 73
Table 32: Debt leverage 74
Table 33: Growth in
operational cash flow - Growth in energy volume 75
List of Figures
Figure 1: Datamonitor' s Key Player Scorecard examines 31 leading utilities
drawn from across Europe' s competitive arenas 4
Figure 2: Key Players
dominate power generation capacity market share in the Wmed competitive arena
5
Figure 3: Key Players dominate power generation output market share in
the Wmed and CEE competitive arenas 6
Figure 4: Despite ongoing industry
consolidation, in no competitive arenas do Key Players dominate power supply
volume market share 7
Figure 5: Despite ongoing industry consolidation, in
no competitive arenas do Key Players dominate gas volume market share 8
Figure 6: Iberdrola achieves an overall ranking of 11, with a utility score of
35.7 21
Figure 7: Iberdrola' s overall ranking is helped by its strong
Performance and Exposure Scores 22
Figure 8: Iberdrola has a high level of
Performance, and a slightly below average level of risk (above average
Exposure score) 23
Figure 9: Iberdrola scores the Key Player average in
Growth, but is slightly ahead in Scale 24
Figure 10: Iberdrola' s overall
financial Performance score is 15.1, surpassing the Key Player average of 10.9
26
Figure 11: Iberdrola' s operating profit margin is double the Key Player
average 27
Figure 12: Iberdrola lags in return on investment, but has very
a strong return on energy volume 28
Figure 13: In terms of Scale Iberdrola
ranks 13, pulling ahead of the Key Player average on the generation capacity
metric 30
Figure 14: In generation capacity Iberdrola ranks 8 with 25 GW
31
Figure 15: Iberdrola' s power volume is 1.7 times its gas volume 32
Figure 16: Iberdrola has a 5.2% share of Key Player power customers 33
Figure 17: At 38.9 TWh, Iberdrola ranks 17 in terms of power supply volume
34
Figure 18: Iberdrola' s share of the gas market is negligible, with less
than one percent of Key Player gas customers 35
Figure 19: Iberdrola' s Key
Player gas supply volume market share is less than one percent 36
Figure
20: Iberdrola ranks 14 in both revenue and net income 37
Figure 21:
Iberdrola falls well below the Key Player average on operating cash flow and
profit growth metrics, for a Growth ranking of 16 39
Figure 22:
Iberdrola' s price earnings ratio of 15 is in line with the Key Player average,
despite a much higher operating profit margin 40
Figure 23: From 2001 to
2005, Iberdrola' s annual profit growth (8.8%) was slightly ahead of its
revenue growth (7.6%) 41
Figure 24: Iberdrola' s operating cash flow
(-37.8%) has dropped from 2004 to 2005, as gas (26.6%) and power (11.4%)
volume has grown 42
Figure 25: Iberdrola outperforms the Key Player
Exposure average only on power NTR 44
Figure 26: Iberdrola' s power NTR is
70.6% of its power supply volume obligations 45
Figure 27: The company has
no equity gas holdings, resulting in a -100% gas NTR 46
Figure 28:
Iberdrola is highly leveraged, with debt at 1.3 times its equity 47
Figure
29: Amongst all Key Players, Iberdrola ranks 23 in terms of debt leverage
48
Figure 30: Iberdrola' s cash flow growth has fallen dramatically as
energy volume has increased 49
Figure 31: Hydro is Iberdrola' s main
generation capacity fuel type 51
Figure 32: Spain accounts for the bulk of
Iberdrola' s power sales 52
Figure 33: As with its power sales, Spain is
the main market for Iberdrola' s gas sales 53
Figure 34: Iberdrola' s
generation capacity is focused almost entirely in Spain 54
Figure 35:
Iberdrola has a market share of 5.2% of Key Player power customers 55
Figure 36: Iberdrola has a market share of less than one percent of Key Player
gas customers 56
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