Enagas S.A.

Annual Report • Feb 28, 2023

Our
	response Our audit procedures in this regard included, among other, the following:
	> Understanding the Enagás Group's process for assessing the recoverability of these assets and reviewing the design and operating effectiveness and implementation of key controls.
	> Evaluating compliance with the terms and conditions of the contracts and agreements between shareholders of Gasoducto Sur Peruano, S.A
	> Analyzing recent relevant notifications between Peruvian official bodies and Gasoducto Sur Peruano, S.A., as well as the documents included in the claim filed by Enagas with the ICSID and the Peruvian government's and Enagás' various replies, responses, and rejoinders.
	> Holding meetings with external and independent experts in Peruvian and international law engaged by the Enanas Group

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	Description The Enagás Group's main revenues as explained on note 2.1 of the Consolidated Financial Statements, are derived from regasification, storage, and transportation of natural gas that are regulated under the framework that started as of January 1, 2021 until 2026 (as explained on Appendix III of the accompanying consolidated financial statements). Consequently, the Group's activities are notably affected by the current regulation (local, regional, national, and European).
	The abovementioned factors have caused us to consider this issue a key audit matter.
Our
	response Our audit procedures in this regard included, among other, the following:
	A	Understanding the Enagás Group's process for recognizing revenue from regulated activities and receivable balances, as well as reviewing the design and operating effectiveness and implementation of key controls.
		Reviewing the regulations from January 1, 2021 and evaluating the degree of compliance therewith.
	A	Testing revenue recognition, verifying its reasonableness in terms of each year's regulatory developments.
	A	Verifying the gas system's accounts payable and receivable by examining conclusions and final settlements with the CNMC during the year.
		Reviewing the disclosures included in notes 2.1, 2.2, and Appendix III to the accompanying consolidated financial statements in conformity with the applicable financial reporting framework.
Impairment analysis of equity method investments

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CONSOLIDATED ANNUAL ACCOUNTS 2022

Consolidated Annual Accounts 2020

Translation of consolidated financial statements originally issued in Spanish and prepared in accordance with International Financial Reporting Standards as adopted by the EU, in conformity with Regulation (EC) No. 1606/ 2002. In the event of a discrepancy, the Spanish-language version prevails.

ENAGÁS, S.A. AND SUBSIDIARIES

	CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2022 CONSOLIDATED INCOME STATEMENT AT DECEMBER 31, 2022 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AT DECEMBER 31, 2022	1 2 3
	CONSOLIDATED STATEMENT OF TOTAL CHANGES IN EQUITY AT DECEMBER 31, 2022	4
	CONSOLIDATED CASH FLOW STATEMENT AT DECEMBER 31, 2022	6
1.	Group activities and presentation bases	6
1.1	Group activity	7
1.2	Presentation bases	7
1.3	Consolidation principles	8
1.4	Estimates and accounting judgements made	11
1.5	Changes in the consolidation scope	13
1.6	Investments accounted for using the equity method	14
1.7	Earnings per share	14
1.8	Dividends distributed and proposed	15
1.9	Commitments and guarantees	15
1.10	New accounting standards	17
1.11	Aspects relating to the international situation	17
2.	Operational performance of the group	19
2.1	Operating profit	20
2.2	Trade and other non-current and current receivables	23
2.3	Trade and other payables	28
2.4	Property, plant, and equipment	29
2.5	Intangible assets	34
2.6	Non-current assets held for sale	37
2.7	Impairment of non-financial assets	37
2.8	Other current and non-current liabilities	38
2.9	Provisions and contingent liabilities	41
3.	Capital structure, financing and financial result	43
3.1	Equity	44
3.2	Result and variation in minority interests	45
3.3	Financial assets and liabilities	47
3.4	Financial debts	54
3.5	Net financial gain /(loss)	57
3.6	Derivative financial instruments	58
3.7	Financial and capital risk management	60
3.8	Cash flows	63
4.	Other Information	65
4.1	Investment properties	65
4.2	Tax situation	66
4.3	Related party transactions and balances	69
4.4	Remuneration to the members of the Board of Directors and Senior Management	71
4.5	Other information concerning the Board of Directors	76
4.6	Other Information	76
4.7	Information by segments	79
4.8	Inventories	82
4.9	Subsequent events	82
	Appendix I. Subsidiaries at December 31, 2022	83
	Appendix II. Joint ventures and associates	84
	Appendix III. Regulatory framework	89

ENAGÁS, S.A. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 2022

(In thousands of euros)

ASSETS	Notes	12.31.2022	12.31.2021
NON-CURRENT ASSETS		7,412,967	7,957,452
Intangible assets	2.5	83,169	86,624
Goodwill		17,521	23,203
Other intangible assets		65,648	63,421
Investment properties	4.1	17,410	18,660
Property, plant, and equipment	2.4	4,164,912	4,428,552
Investments accounted for using the equity method	1.6	2,552,584	2,789,684
Other non-current financial assets	3.3.a	593,198	632,621
Deferred tax assets	4.2.f	1,694	1,311
CURRENT ASSETS		1,985,610	1,916,266
Non-current assets held for sale	2.6	40,460	29,669
Inventories	4.8	35,200	26,359
Trade and other receivables	2.2.b	513,031	382,709
Current tax assets	4.2.a	453	12,357
Other current financial assets	3.3.a	29,180	13,466
Short-term accruals		8,002	7,555
Cash and cash equivalents	3.8.a	1,359,284	1,444,151
TOTAL ASSETS		9,398,577	9,873,718

EQUITY AND LIABILITIES	Notes	12.31.2022	12.31.2021
EQUITY		3,218,302	3,101,650
SHAREHOLDERS' EQUITY		3,076,477	3,158,421
Sharecapital	3.1.a	392,985	392,985
Issue premium	3.1.b	465,116	465,116
Reserves	3.1.d	2,036,921	2,080,241
Treasury shares	3.1.c	(18,366)	(12,464)
Profit /(loss) for the year		375,774	403,826
Interim dividend	1.8.a	(179,684)	(177,812)
Other equity instruments	4.4	3,731	6,529
ADJUSTMENTS FOR CHANGES IN VALUE	3.1.e	125,804	(72,991)
MINORITY INTERESTS (EXTERNAL PARTNERS)	3.2	16,021	16,220
NON-CURRENT LIABILITIES		4,417,833	5,299,828
Non-current provisions	2.9.a	295,893	292,356
Financial debt and non-current derivatives	3.3.b	3,935,797	4,808,928
Deferred tax liabilities	4.2.f	150,445	160,317
Other non-current liabilities	2.8	35,698	38,227
CURRENT LIABILITIES		1,762,442	1,472,240
Current provisions	2.9.a	11,564	717
Financial debt and current derivatives	3.3.b	970,440	1,056,128
Trade and other payables	2.3	710,234	412,790
Current tax liabilities	4.2.a	70,204	2,605
TOTAL EQUITY AND LIABILITIES		9,398,577	9,873,718

The accompanying Notes 1 to 5 constitute an integral part of the Consolidated Balance Sheet at December 31, 2022

ENAGÁS, S.A. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT AT DECEMBER 31, 2022

(In thousands of euros)

	Notes	12.31.2022	12.31.2021
Revenue	2.1.a	957,100	975,686
Income from regulated activities		950,440	967,607
Income from non-regulated activities		6,660	8,079
Other operating income	2.1.a	13,209	15,487
Personnel expenses	2.1.b	(140,414)	(129,747)
Other operating expenses	2.1.c	(233,746)	(183,672)
Depreciation and amortisation	2.4 and 2.5	(264,122)	(262,837)
Impairment losses on disposal of fixed assets	2.4, 2.5 and 4.1	(607)	5,201
Result of investments accounted for using the equity method	1.6	146,820	163,251
OPERATING PROFIT		478,240	583,369
Financial income and similar	3.5	37,525	19,524
Financial expenses and similar	3.5	(100,348)	(103,009)
Impairment and gains (losses) on disposals of financial instruments	3.5	110,891	—
Exchange differences (net)	3.5	70	144
Change in fair value of financial instruments	3.5	20	(71)
FINANCIAL RESULT		48,158	(83,412)
PROFIT /(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS		526,398	499,957
Income tax	4.2.c	(149,984)	(95,318)
PROFIT /(LOSS) FOR THE YEAR FROM CONTINUING OPERATIONS		376,414	404,639
Profit attributable to minority interests	3.2	(640)	(813)
PROFIT ATTRIBUTABLE TO THE PARENT COMPANY		375,774	403,826
BASIC EARNINGS PER SHARE (in euros)	1.7	1.4379	1.5443
DILUTED EARNINGS PER SHARE (in euros)	1.7	1.4379	1.5443

The accompanying Notes 1 to 5 constitute an integral part of the Consolidated Income Statement at December 31, 2022.

ENAGÁS, S.A. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AT DECEMBER 31, 2022

(In thousands of euros)

		12.31.2021
	376,414	404,639
	375,774	403,826
	640	813
	199,817	118,024
	(51,223	(67,098
3.1.e	) (414)	) (6,924)
3.1.e	(50,913)	(61,905)
3.1.e	104	1,731
	218,391	184,588
3.1.e	81,172	23,741
3.1.e	148,901	164,597
3.1.e	(11,682)	(3,750)
	30,397	—
	30,397	—
	2,252	534
	(1,022)	11,705
	33,509	9,432
3.1.e	3,627	12,576
3.1.e	30,789	—
3.1.e	(907)	(3,144)
	2,890	2,273
3.1.e	3,715	3,219
3.1.e	(825)	(946)
	(37,421	—
	) (37,421)	—
	198,795	129,729
	575,209	534,368
	640	813
3.2	640	813
	574,569	533,555
	Notes 3.1.e	12.31.2022

The accompanying Notes 1 to 5 constitute an integral part of the Consolidated Statement of Comprehensive Income at December 31, 2022

IAS 1 requires that items to be reclassified in the Consolidated Income Statement are broken down separately from those that will not be reclassified. All of the aforementioned cases are considered susceptible to reclassification in the income statement.

ENAGÁS, S.A. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF TOTAL CHANGES IN EQUITY AT DECEMBER 31, 2022

(In thousands of euros)

	Share capital (Note 3.1.a)	Issue premium and reserves (Note 3.1.b and Note	Other equity instruments (Note 4.4)	Treasury shares (Note 3.1.c)	Profit /(loss) for the year	Interim dividend (Note 1.8.a)	Adjustments for changes in value (Note 3.1.e)	Equity attributable to the Parent Company	Minority interests (Note 3.2)	Total Equity
BALANCE AT DECEMBER 2020 AND AT THE BEGINNING OF 2021	392,985	3.1.d) 2,539,540	4,402	(12,464)	444,002	(175,720)	(202,720)	2,990,025	16,959	3,006,984
Total recognised income and expenses					403,826		129,729	533,555	813	534,368
Transactions with shareholders	—	—			(263,580)	(177,812)		(441,392)	(3,559)	(444,951)
- Distribution of dividends		—	—	—	(263,580)	(177,812)		(441,392)	(3,559)	(444,951)
Other changes in equity		5,817	2,127	—	(180,422)	175,720		3,242	2,007	5,249
- Payments based on equity instruments		—	2,127	—	—	—	—	2,127	—	2,127
- Transfers between equity items		4,702		—	(180,422)	175,720	—	—	—	—
- Differences due to changes in consolidation		(56)	—	—	—	—	—	(56)	(223)	(279)
scope - Other changes		1,171	—	—	—	—	—	1,171	2,230	3,401
BALANCE AT DECEMBER 2021 AND AT THE
BEGINNING OF 2022	392,985	2,545,357	6,529	(12,464)	403,826	(177,812)	(72,991)	3,085,430	16,220	3,101,650
Total recognised income and expenses	—	—	—	—	375,774	—	198,795	574,569	640	575,209
Transactions with shareholders	—	—	—	—	(266,718)	(179,684)	—	(446,402)	(820)	(447,222)
- Distribution of dividends	—	—	—	—	(266,718)	(179,684)		(446,402)	(820)	(447,222)
Transactions with treasury shares	—	—	—	(9,677)	—	—	—	(9,677)	—	(9,677)
Other changes in equity	—	(43,320)	(2,798)	3,775	(137,108)	177,812	—	(1,639)	(19)	(1,658)
- Payments based on equity instruments	—	—	(2,798)	3,775	—	—	—	977	—	977
- Transfers between equity items	—	(40,704)		—	(137,108)	177,812	—	—	—	—
- Differences due to changes in consolidation	—	—	—	—	—	—	—	—	268	268
scope - Other changes	—	(2,616)	—		—	—		(2,616)	(287)	(2,903)
BALANCE AT DECEMBER 31, 2022	392,985	2,502,037	3,731	(18,366)	375,774	(179,684)	125,804	3,202,281	16,021	3,218,302

The accompanying Notes 1 to 5 constitute an integral part of the Consolidated Statement of Total Changes in Equity at December 31, 2022

ENAGÁS, S.A. AND SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENT AT DECEMBER 31, 2022

(In thousands of euros)

	Notes	12.31.2022	12.31.2021
CONSOLIDATED PROFIT BEFORE TAX		526,398	499,957
Adjustments to consolidated profit		71,270	173,809
Amortisation of fixed assets	2.4 and 2.5	264,122	262,837
Other adjustments to profit		(192,852)	(89,028)
Change in operating working capital		235,342	39,474
Inventories		(9,037)	(4,990)
Trade and other receivables		(67,285)	(85,714)
Other current assets and liabilities		—	(1,596)
Other non-current assets and liabilities		(3,188)	(620)
Trade and other payables		314,852	132,394
Other cash flows from operating activities		(106,979)	(133,306)
Interest paid		(70,923)	(82,473)
Interest received		12,138	13,291
Income tax receipts (payments)	4.2.c	(48,194)	(64,124)
NET CASH FLOWS FROM OPERATING ACTIVITIES		726,031	579,934
Payments for investments		(150,238)	(114,011)
Subsidiaries and associates	1.6	(23,012)	(10,641)
Fixed assets and real estate investments	2.4 and 2.5	(90,786)	(69,854)
Other financial assets		(36,440)	(33,516)
Proceeds from disposals		698,810	54,327
Subsidiaries and associates		38,618	52,093
Non-current assets held for sale		659,629	2,234
Other financial assets		563	—
Other cash flows from investing activities		121,268	160,268
Other receipts (payments) from investing activities	1.6	121,268	160,268
NET CASH FLOWS FROM INVESTING ACTIVITIES		669,840	100,584
Proceeds from and (payments) on equity instruments		(8,423)	—
Acquisition of equity instruments		(9,677)	—
Sales of equity instruments		1,254	—
Proceeds from and payments on financial liabilities		(1,031,499	377,572
Issues	3.8.c	2,247,980 )	3,892,937
Repayment and amortisation	3.8.c	(3,279,479)	(3,515,365)
Other cash flows from investing activities		(38,175)	(36,481)
Other receipts (payments) from financing activities	3.4	(38,175)	(36,481)
Dividends paid	1.8.a	(446,686)	(444,040)
NET CASH FLOWS FROM FINANCING ACTIVITIES		(1,524,783)	(102,949)
EFFECT OF CHANGES IN CONSOLIDATION METHOD		2,273	—
Effect of exchange rate fluctuations		41,772	2,927
TOTAL NET CASH FLOWS		(84,867)	580,496
Cash and cash equivalents at beginning of period		1,444,151	863,655
CASH AND CASH EQUIVALENTS AT END OF PERIOD	3.8.a	1,359,284	1,444,151

The accompanying Notes 1 to 5 constitute an integral part of the Consolidated Cash Flow Statement at December 31, 2022.

1. Group activities and presentation bases

RELEVANT ASPECTS

Results

The net profit attributed to the parent company amounted to 375,774 thousands of euros (Note 1.7).

This amount includes several non-recurring events, such as the closing of the transfer of the stake in GNL Quintero, for which the Enagás Group recorded a net profit of 135 million euros, the impairment of the stake in Tallgrass Energy for 134 million euros, and the change of control to joint control of the Enagás Renovable subgroup and consequent recognition as investments accounted for using the equity method at fair value, generating a profit of 50 million euros.

• Basic earnings per share and diluted earnings per share at December 31, 2022 were the same and amounted to 1.4379 euros per share. At December 31, 2021, basic earnings per share amounted to 1.5443 euros, which coincided with diluted earnings per share (Note 1.7).
• The proposed dividend payment for 2022 amounts to 1.72 euros per share (1.70 euros per share in 2021) (Note 1.8).
• The Board of Directors has proposed the following distribution of net profit corresponding to 2022 for the Parent company, Enagás, S.A. (Note 1.8.a):

International economic situation

• In 2022, both Enagás and its Group companies have operated normally, ensuring continuity of natural gas supply both in Spain and in the countries where these companies operate. This Group's main activity takes place within a stable regulatory framework.
• As in 2021, in 2022 there were no significant equity effects as a result of the Covid-19 situation, as detailed in Note 1.11. Also, there have been no significant effects as a result of the international situation caused by the war in Ukraine.

Working capital

At December 31, 2022 the Consolidated Balance Sheet presents a positive working capital of 223,168 thousands of euros (positive working capital of 444,026 thousands of euros at December 31, 2021).

Other information

The Enagás Group has made a net divestment of 548,572 thousands of euros in 2022, as reflected in the Cash Flow Statement. The most noteworthy transactions are the following:

• In July 2022, the conditions precedent were fulfilled and the Enagás Group completed the transfer of the GNL Quintero interest, for which it received 655 million dollars (638.8 million euros) (Note 1.5).
• Investments were made in regasification, transmission and storage facilities, with the aim of expanding and improving them to adapt to future demand forecasts amounting to 90,786 thousands of euros in relation to the investment additions indicated in Note 2.4.

1.1 Group activity

Enagás, S.A. (hereinafter the Company or the Parent Company), a company incorporated in Spain on July 13, 1972 in accordance with the Spanish Corporate Enterprises Act, is the head of a group of companies (Appendix I and II) that form the Enagás Group (hereinafter the Group or the Enagás Group) and which are engaged in the transmission, storage and regasification of natural gas, as well as the development of all functions related to the technical management of the gas system.

a) Corporate purpose

• i. Regasification, basic and secondary transmission as well as storage of natural gas, via the corresponding gas infrastructure or facilities, of its own or of third parties, and also the performance of auxiliary activities or others related to the aforementioned activities.
• ii. Design, construction, start up, exploitation, operation, and maintenance of all types of complementary gas infrastructure and facilities, including telecommunications networks, remote control and control of any nature, and electricity networks, whether its own or of third parties.
• iii. Development of all functions relating to technical management of the gas system.
• iv. Transmission and storage activities for carbon dioxide, hydrogen, biogas, and other energy-related fluids, via the corresponding facilities, of its own or of third parties, as well as the design, construction, start up, exploitation, operation, and maintenance of all types of complementary infrastructure and installations necessary for said activities.
• v. Activities for making use of heat, cold, and energies associated with its main activities or arising from them.
• vi. Rendering of services of a diverse nature, among them, engineering, construction, advisory, and consultancy services in connection with the activities relating to its corporate purpose as well as participation in natural gas markets management activities to the extent they are compatible with the activities permitted for the Company by law.

The above activities can be carried out by Enagás, S.A. itself or through companies with an identical or analogous corporate purpose in which it holds interest, provided they remain within the scope and limitations established by legislation applicable to the hydrocarbons sector. In accordance with said legislation, the activities related to transmission and technical management of the system which are of a regulated nature must be carried out by two subsidiaries entirely owned by Enagás, S.A. (Enagás Transporte, S.A.U. and Enagás GTS, S.A.U., respectively). Consequently, the corporate purpose includes:

i. Management of the corporate group comprised of the interest held in share capital of companies belonging to the group.

ii. Rendering of assistance or support services to affiliates, including the provision of appropriate guarantees and reinforcement for them.

b) Other information

Its registered address is located at Paseo de los Olmos, 19, 28005, Madrid. The Articles of Association and other public information about the Company and its Group may be consulted on its web page, www.enagas.es, and at its registered office. The name of the Parent Company has not changed with respect to the previous year.

1.2 Basis of presentation

The Consolidated Annual Accounts of the Enagás Group for 2022 were prepared based on the accounting records of the Parent Company and remaining entities comprising the Group, in accordance with International Financial Reporting Standards (hereinafter "IFRS") as adopted by the European Union, in accordance with Regulation (EC) No. 1606/2002 of the European Parliament and of the Council.

The Consolidated Annual Accounts have been prepared applying all mandatory accounting principles, standards, and measurement criteria in order to give a true and fair view of the equity and financial position of the Group at December 31, 2022, as well as of the results of its operations, changes in equity, cash flows, and changes in recognised income and expenses, which have arisen in the Group for the year then ended.

The Consolidated Annual Accounts of the Enagás Group for 2022 were authorised for issue by the Directors at their Board meeting held on February 20, 2023. The Consolidated Annual Accounts for 2021 were approved at the General Shareholders' Meeting of Enagás, S.A. held on March 31, 2022 and were subsequently filed at the Madrid Companies Registry. The Group's Consolidated Annual Accounts and those of each entity belonging to the Group, corresponding to financial year 2022, are pending approval at their respective Ordinary General Shareholders' Meeting. It is expected that they will be approved without modification.

These Consolidated Annual Accounts are presented in thousands of euros (unless otherwise stated).

International economic situation

Continuing with the application of the recommendations of the European Securities and Markets Authorities (ESMA) provided in 2020 and 2021 regarding the economic situation generated by COVID-19, we provide in Note 1.11 below a summary of the main aspects of this situation considered by the Enagás Group in relation to the consolidated annual accounts at December 31, 2022.

Note 1.11 below also includes a reference to the armed conflict in Ukraine, which began on February 24, 2022, and indicates that it did not have a negative impact on the consolidated financial statements as of December 31, 2022.

a) Materiality criteria

The accompanying Consolidated Annual Accounts do not include the information or disclosures which the Group did not consider of material significance or important relative to the concept of materiality as defined in the conceptual framework of IFRS, taking into account the Consolidated Annual Accounts as a whole.

b) Comparison of information

The information included in these consolidated notes relating to 2021 is presented solely and exclusively for purposes of comparison with the information relating to 2022.

1.3 Consolidation principles

The Consolidated Financial Statements include the Financial Statements of the Parent Company, Enagás, S.A., and its subsidiaries, associates, jointly controlled operations and joint ventures at December 31, 2022.

Subsidiaries are considered to be those entities with respect to which the Enagás Group fulfils the following criteria:

• The capacity to use its interest to influence the amount of revenue to be obtained from said subsidiary.
• The Group has power over the affiliate, in so far as a company has rights which permit it to direct relevant activities, understood as those which significantly affect the revenue generated by the subsidiary.
• It maintains exposure or the right to variable revenue arising from its involvement in the subsidiary.

Subsidiaries are consolidated using the full consolidation method.

The share of minority shareholders in the equity and profit of consolidated subsidiaries of the Enagás Group is recognised in "Minority interests (External partners)" under "Equity" in the Consolidated Balance Sheet and "Profit/(loss) attributable to minority interests" in the Consolidated Income Statement, respectively. Subsidiaries are consolidated starting on the acquisition date, i.e., the date on which the Group obtains control, and they continue to be consolidated until such control is lost.

The financial statements of subsidiaries are prepared for the same reporting period as those of the Parent. With respect to the joint agreements, that is, those by virtue of which the Enagás Group maintains joint control with one or more other partners, a distinction is made between joint operations and joint ventures. Joint control is understood as control shared by virtue of a contractual agreement which requires unanimous consent from all involved parties for decision-making regarding relevant activities.

Thus, joint operations are considered to be those in which, based on a contractual arrangement, a company enjoys the rights to assets and assumes obligations with respect to liabilities. The interest held in joint operations is consolidated using the proportionate consolidation method.

In addition, joint ventures are considered to be those in which, based on a contractual arrangement, a company exercises rights with respect to the net assets of the joint venture. Shareholdings in joint ventures are consolidated using the equity method. In those cases in which the Enagás Group acquires control over companies previously considered as joint ventures, a new estimate is made for the fair value of the interest held previously in equity at the acquisition date, recognising income or losses in the Consolidated Income Statement for the reporting period. Furthermore, associates are considered to be those entities over which the Enagás Group holds significant influence, that is, the power to intervene in decision-making regarding financial policies and operational matters, without attaining full control or joint control. The interest held in associates is consolidated using the equity method.

If appropriate, adjustments are made to the financial statements of subsidiaries, affiliates, joint ventures, and joint operations in order to unify their accounting policies with those of the Enagás Group.

a) Consolidation methods

Consolidation method/Company	Functional currency
Full consolidation
Enagás Transporte, S.A.U.	Euro
Enagás GTS, S.A.U.	Euro
Enagás Internacional, S.L.U.	US dollar
Enagás Financiaciones, S.A.U.	Euro
Enagás U.S.A., L.L.C.	US dollar
Enagás Perú, S.A.C.	US dollar
Enagás México, S.A. de C.V.	US dollar
Enagás Emprende, S.L.U.	Euro
Enagás Chile, SpA	US dollar
Enagás Transporte del Norte, S.L. (1)	Euro
Infraestructuras del Gas, S.A. (1)	Euro
Enagás Holding USA, S.L.U.	US dollar
Enagás Infraestructuras de	Euro
Hidrógeno, S.A.U.
Efficiency for LNG Applications, S.L.	Euro
(1) Enagás Services Solutions, S.L.	Euro
Sercomgas Solutions, S.L. (1)	Euro
Scale Gas Solutions, S.L.	Euro
Equity method
Gasoducto de Morelos, S.A.P.I. de	US dollar
C.V. (2)
Morelos O&M, S.A.P.I. de C.V. (2)	US dollar
Estación de Compresión Soto La Marina, S.A.P.I. de C.V.	US dollar
Soto de la Marina O&M, S.A.P.I de	US dollar
C.V. Bahía de Bizkaia Gas, S.L.	Euro
Trans Adriatic Pipeline AG	Euro
Terminal de LNG de Altamira, S. de R.L. de C.V.	US dollar

Consolidation method/Company	Functional currency
Transportadora de Gas del Perú, S.A. US dollar
Planta de Regasificación de	Euro
Sagunto, S.A.
Iniciativas del Gas, S.L.	Euro
Mibgas, S.A.	Euro
Tallgrass Energy L.P.	US dollar
Llewo Mobility, S.L (previously "Gas	Euro
to Move, S.L.")
Tecgas, Inc.	US dollar
Mibgas Derivatives, S.A.	Euro
Senfluga Energy Infraestructure	Euro
Hellenic Gas Transmission System	Euro
Operator, S.A.
Seab Power Ltd.	Sterling pound
Vira Gas Imaging, S.L.	Euro
Alantra Energy Transition, S.A.	Euro
Knutsen Scale Gas, S.L.	Euro
Green Ports Project, S.L.	Euro
Enagás Renovable, S.L. (Subgrupo)	Euro
Solatom CSP, S.L.	Euro
Sunrgyze, S.L. (formerly "SUN2HY, S.L.")	Euro
Scale Gas Med Shipping, S.L.U.	Euro
Trovant Technology, S.L.	Euro
Basquevolt, S.A.	Euro
H2Greem Global Solutions, S.L.	Euro
Axent Infraestructuras de	Euro
Telecomunicaciones, S.A.

(1) For these companies the Enagás Group recognises interest corresponding to minority interests under "Minority interests (External partners)" in Equity in the Consolidated Balance Sheet at December 31, 2022.

(2) The shareholdings of Gasoducto de Morelos, S.A.P.I. de C.V. and Morelos O&M, S.A.P.I. de C.V. remain classified as "Non-Current Assets Held for Sale" as of December 31, 2022 (Note 2.6).

b) Consolidation process

Consolidation of the Enagás Group was carried out in accordance with the following process:

i. Transactions between companies included in the consolidation scope. All balances, transactions, and results between companies consolidated under the full consolidation method were eliminated upon consolidation. For joint operations, the balances, transactions and results of operations with other Group companies were eliminated in the proportion at which they were consolidated. With respect to gains and losses generated through operations among Group companies and companies consolidated under the equity method, the percentage of interest held by the Group in the latter was eliminated.

• ii. Harmonisation of criteria. For affiliates which apply different accounting and measurement criteria to those of the Group, the consolidation process included the corresponding adjustments, provided the effect was significant, with a view to presenting the Consolidated Financial Statements based on harmonised measurement standards.
• iii. Translation of Financial Statements denominated in foreign currency. The translation to euros of the Financial Statements of the aforementioned companies in the Enagás Group consolidation process was carried out in accordance with the following procedures:
  • Assets and liabilities of each corresponding balance sheet denominated in foreign currency are translated at the spot rate prevailing at the balance sheet date.
  • Income and expense items making up each income statement heading are translated at the average exchange rate for the year in which the related transactions are carried out.
  • The historical exchange rate for Equity is maintained.
  • Exchange gains (losses) arising as a result of net assets are recognised as a separate component of equity under "Adjustments for changes in value" and in the income statement under "Translation differences."

When disposing of a company whose functional currency is not the euro; or when disposals are carried out as a result of losing control; or result from business combinations with respect to previously held interest, translation differences recognised as a component of equity relating to said investment are recognised in the Consolidated Income Statement as soon as the effect arising from said disposal is recognised.

The exchange rates with respect to the euro of the main currencies used by the Group during 2022 and 2021 were as follows:

Average exchange rate applicable to	Exchange rate applicable to the
the headings of the	balance sheet
income statement	headings (1)
1.05361	1.06635
4.03416	4.04623
0.85261	0.88455
1.18439	1.1375
4.57224	4.5474
0.86091	0.83964

(1) Equity excluded.

The effect on the main headings of the Group's Consolidated Financial Statements of applying the translation process to the net assets of companies consolidated using the full consolidation method and whose functional currency is the US dollar is as follows:

2022 Fixed assets and	Consolidated total	Contribution of companies using the euro as functional currency	Contribution of companies using the US dollar as functional	Amount in US dollars
investment	4,265,491	4,264,865	currency 626	668
properties Other non current financial	593,198	590,717	2,481	2,646
assets Trade and other receivables	513,031	512,352	679	724
Other current financial assets	29,180	8,110	21,070	22,468
Cash and cash equivalents	1,359,284	830,400	528,884	563,975
Financial debt and non-current derivatives	3,935,797	3,521,784	414,013	441,483
Financial debt and current derivatives	970,440	574,113	396,327	422,623
Trade and other
payables	710,234	605,967	104,267	111,185

iv. Elimination of dividends. Internal dividends are considered to be those a Group company recognises as income for the year and that have been distributed by another Group company.

During the consolidation process, dividends received by subsidiaries and joint operations are eliminated by considering them to be reserves of the recipient company, which consequently recognises them under "Reserves". In the case of minority interests in companies consolidated using the full consolidation method, the amount of the dividend corresponding to said minority interests is eliminated from the consolidated equity heading "Minority interests (External partners)".

v. Equity method. The investment is initially recognised at cost and subsequently adjusted by the share corresponding to the investor of the changes in net assets of the affiliate. In addition, dividends received are accounted for as a lower amount under "Investments accounted for using the equity method".

Also, when the associate or joint venture is acquired, any difference between the cost of the investment and the share of the net fair value of the identifiable assets and liabilities of the associate or joint venture is accounted for as follows:

• The capital gain related to these companies or joint ventures is included in the carrying amount of the investment. This capital gain cannot be amortised.
• Any excess of the share of the net fair value of the identifiable assets and liabilities over the cost of the investment is included as income to determine the share

of profit or loss of the associate or joint venture in the period in which the investment is acquired.

The consolidated profit for the year includes participation in the results of the affiliates under "Results of investments accounted for using the equity method" in the accompanying Consolidated Income Statement. If the participation in losses of an associate or joint venture equals or exceeds participation in said entities, the loss will no longer be recognised under additional losses. Once interest in an entity is reduced to zero, the additional losses will be maintained and a liability will only be recognised to the extent the corresponding entity incurred legal or implicit obligations or made a payment on behalf of an associate or joint venture. If the associate or joint venture subsequently reports profits, the entity will once again recognise its interest only after its participation in said profits equals its participation in unrecognised losses.

1.4 Estimates and accounting judgements made

In the Group's Consolidated Annual Accounts for 2022, estimates and judgements were occasionally made by the Senior Management of the Group and of the consolidated companies, subsequently ratified by the Directors, in order to quantify certain assets, liabilities, income, expenses, and commitments reported herein. Basically:

Estimates

• The useful life of PP&E assets (Note 2.4).
• Provisions for dismantling/abandonment costs, other provisions and contingent liabilities (Note 2.9).
• The measurement of investments accounted for using the equity method, and non-financial assets to determine the

possible existence of impairment losses (Notes 1.6 and 2.7).

• The fair value of financial instruments (Notes 3.3 and 3.6).
• Impairment losses on financial assets measured at amortised cost (Notes 2.2 and 3.3).
• The calculation of income tax and deferred tax assets (Note 4.2).
• The fair value of equity instruments granted under the Long-Term Incentive Plan (ILP) (Note 3.1.c).
• Assumptions on the calculation of the term of lease contracts in application of IFRS 16 (Note 2.4.b).
• Determination of the expected loss associated with receivables (Note 2.2).

Judgements

• The recognition of investments accounted for using the equity method (Note 1.6).
• Compliance with conditions for classifying assets and liabilities as non-current assets and liabilities held for sale (Note 2.6).

Although these estimates were made on the basis of the best information available at December 31, 2022, future events may require these estimates to be modified prospectively in the coming years (upwards or downwards). In accordance with IAS 8, this would be done prospectively, recognising the effects of any change of estimate in the Consolidated Income Statement.

1.5 Changes in the consolidation scope

The following changes in the consolidation scope of the Enagás Group occurred during 2022:

	Amount (thousands)		Stake percentage
	In local
Entity	currency	In euros	At 12.31.2022	At 12.31.2021	Description / Type of control
Entries into the scope
Enagás Infraestructuras de Hidrógeno, S.L.	9,451	9,451	100.0 %	— %	Admission to the scope by incorporation of the company, which Enagás consolidates globally.
Basquevolt, S.A.	1,500	1,500	14.6 %	— %	Capital increase subscribed by the Enagás Group. With the shareholding structure and how decision-making is articulated, the Enagás Group integrates this investment through the equity method.
Enagás Renovable Chile, SpA	25	24	60.0 %	— %	Incorporation of this company, in which the Enagás Group held a 100% stake through Enagás Renovable. As a result, control was subsequently lost, as it belongs to the Enagás Renovable, S.L.U. subgroup (see below).
Changes in the method
Enagás Renovable, S.L. (subgroup)	—	—	60.0 %	100.0 %	Capital increase subscribed by another shareholder which becomes a shareholder. With the new shareholders' agreement, the Enagás Group now accounts for this investment using the equity method, with a positive impact of 50 million euros on the income statement at the time the fair value was first recognised. Subsequently, Enagás transferred two shareholdings of 5% each to bring in two new shareholders, and these transfers had no material impact on the income statement.
H2Greem Global Solutions, S.L.	—	—	34.0 %	79.8 %	Capital increase subscribed by another shareholder, and with the new shareholders' agreement, the Enagás Group is now integrating this investment using the equity method, with a non significant effect on the Income Statement.
Trovant Technology, S.L.	—	—	12.5 %	4.0 %	Capital increase and entry of new shareholders. With the change in the shareholders' agreement and the way the decisions are articulated, the Enagás Group is now integrated into this company using the equity method.
Exits from the perimeter
GNL Quintero, S.A.	—	—	— %	45.4 %	Once the conditions precedent had been met, the transaction was effectively completed, with a positive impact of 135 million euros on the net profit of the Enagás Group.
Compañía Operadora de Gas del Amazonas ("COGA")	—	—	— %	51.0 %	At the end of December 2022, the transaction was effectively closed, which had a non-significant positive effect on the Enagás Group's income statement.

Enagás Infraestructuras de Hidrógeno, S.L.

On April 21, 2022, Enagás Infraestructuras de Hidrógeno, S.L., a company wholly owned by Enagás, S.A., was incorporated. Its corporate purpose is to carry out transmission and storage activities for green hydrogen and other renewable gases related to hydrogen, as well as to carry out ancillary or related activities, including logistics systems for the transmission and temporary storage of green hydrogen.

GNL Quintero, S.A.

On July 20, 2022, Enagás Internacional, S.L.U. (from its affiliate Enagás Chile) and OMERS Infrastructure jointly sold their stakes in the Chilean company GNL Quintero, S.A. to the consortium formed by EIG and Fluxys, S.A. for a total of 655 million dollars, (amount attributable to Enagás Group) approximately 638.8 million euros (adjusted for dividends received between the signing and the aforementioned final closing) (Note 1.6). This transaction is part of Enagás' ongoing divestment in Chile.

The closing of this transaction resulted in an after-tax gain of approximately 135 million euros, including a non-recurring income tax effect of 70 million euros (Note 4.2).

Enagás Renovable, S.L.

On July 20, 2022, the preconditions for the entry of Hy24 (a joint venture between Ardian and FiveT Hydrogen) in the capital of Enagás Renovable were met through a capital increase whereby it became a 30% shareholder of this company, with Enagás holding 70%. By virtue of this agreement and the decision-making regime established in the corporate resolutions, Enagás now has joint control of Enagás Renovable subgroup, which is accounted for using the equity method. As a result of the transaction and the initial recognition of the fair value as a consequence of the loss of control in Enagás Renovable, a capital gain of 50 million euros has arisen (Note 1.6).

Subsequently, the Enagás Group sold an additional 10% of the share capital it held in Enagás Renovable, with no impact on the income statement.

Compañía Operadora de Gas del Amazonas ("COGA")

At the end of December 2022, Enagás finalised the sale of its stake in Compañía Operadora de Gas del Amazonas ("COGA") (Note 1.6). This transaction has had an insignificant positive impact on the group's net profit.

1.6 Investments accounted for using the equity method

ACCOUNTING POLICIES

Note 1.1.

• The Group assesses the existence of joint agreements as well as significant influence with respect to associates, taking into account the shareholder agreements which require a scheme of increased majorities for taking relevant decisions.
• In order to classify the joint agreements among joint ventures and joint operations, the Group assesses the rights and obligations of the involved parties as well as the remaining circumstances stipulated in said agreements.
• The Group presents the profit for the period of the companies accounted for using the equity method as part of the Group's operating profit, since these companies carry out the same activity as the corporate purpose of the Enagás Group described in

SIGNIFICANT ESTIMATES AND JUDGEMENTS

At year-end, or when there are indications of impairment, the Group analyses the recoverable amounts of investments accounted for under the equity method to determine the possibility of impairment.

	New					Changes into		Other
Opening	acquisitions /		Profit /(loss)	Translation	Hedging	the scope/	Valuation	adjustme	Balance at
balance	Increases (1)	Dividends	for the year	differences	transactions	Decreases (2)	adjustments (3)	nts	year-end
2022
2,789,684	23,012	(129,454)	146,820	148,901	72,382	(359,598)	(138,808)	(355)	2,552,584
2021
2,658,396	10,301	(162,881)	163,251	164,597	22,264	(64,127)	—	(2,117)	2,789,684

(1) "New acquisitions/increases" in 2022 mainly includes increases in the investments in Power to Green in the amount of 13,043 thousands of euros, Sunrgyze in the amount of 4,456 thousands of euros, in Axent in the amount of 2,205 thousands of euros and in Basquevolt in the amount of 1,500 thousands of euros (Note 1.5).

• (2) "Changes into the scope/Decreases" in 2022 mainly includes the reclassifications the reclassifications of the shareholdings in the companies GNL Quintero and COGA to non-current assets held for sale and their subsequent sale before December 31, 2022 (Note 1.5). In addition, there is an increase due to a change in the scope of consolidation of the Enagás Renovable, S.L. subgroup (Note 1.5).
• (3) "Valuation adjustments" includes the amount corresponding to the valuation adjustment of the investments in Tallgrass Energy (see below) and Sunrgyze.

Dividends

The dividends approved during the 2022 and 2021 financial years were as follows:

	2022	2021
TgP	72,591	64,148
Saggas	2,538	20,010
GNL Quintero	—	26,383
BBG	7,000	17,500
Grupo Altamira	20,626	2,621
Senfluga	3,654	7,578
Tallgrass Energy	21,506	22,645
Other entities	1,539	1,996
Total	129,454	162,881

Appendix II to these consolidated annual accounts provides disclosure on data relating to joint ventures, joint operations, and associates of the Enagás Group at December 31, 2022 and December 31, 2021.

The recoverable amount of investments in associates or business combinations is evaluated for each associate or business combination, unless the associate or business combination does not generate cash flows for continuous use which are largely independent of the cash flows arising from other Group assets. Note 2.7 details how the recoverable amount is estimated.

With respect to the impairment analysis for affiliates, the discount rate applied (cost of equity) in 2022 ranged from 5.5%-9.5%, depending on the country (5%-9% in 2021). Considering that all the affiliates have been operating normally during 2022 (see Note 1.11), the sensitivity analysis of the discount rate has been performed using a range of +0.5% and -0.5%. From this analysis, no significant associated risks other than those explained below have been identified in respect of Tallgrass Energy. Thus, the Group management considers that, within the specified ranges, there would be no changes in the impairment calculation.

Tallgrass Energy ("TGE")

In relation to investment in TGE, in 2022 the Company has adopted a strategy focused on energy decarbonisation, promoting projects for the production and transmission of hydrogen and ammonia, both for consumption in the United States and for export.

This strategy involves significant short and medium-term investment in various projects, with the Company's priority being to use the cash flows generated to finance the new

investment projects, and therefore no more dividend distribution is expected in the 2023-2025 period.

In 2022, interest rates in the United States have risen, which has led to an increase in the risk-free component of the discount rate used, to between 8.3% and 8.7%.

As a result of the aforementioned elements that entail a delay in the dividend schedule as well as a higher discount to be applied to dividends, the negative impact on the recoverable value of the investment accounted for using the equity method in TGE has been analysed, resulting in a valuation adjustment of 133.8 million euros; the net value of said investment amounts to 1,414 million euros. This result has been recorded as Financial Result in the 2022 Consolidated Income Statement, and is presented separately from the equity-accounted result, which corresponds to the contribution to the result of this investment. In addition, and considering the key elements of the energy decarbonisation strategy, a sensitivity analysis has been conducted for possible variations in the key assumptions (new investments, timing and profitability of these investments, as well as availability of returns and discount rate), considering an improved performance scenario and a worsened performance scenario. As a result, a range would be determined between a higher recoverable amount of 123 million euros and a lower recoverable amount of 104 million euros compared to the equity method at December 31, 2022.

1.7 Earnings per share

	2022	2021	Change
Net result of the financial year
attributed to the parent company (thousands of
euros)	375,774	403,826	(6.9) %
Weighted average number of
shares outstanding
(thousands of shares)	261,344	261,488	(0.1) %
Basic earnings per share (in
euros)	1.4379	1.5443	(6.9) %
Diluted earnings per share
(in euros)	1.4379	1.5443	(6.9) %

As there are no potential ordinary shares at December 31, 2022 and December 31, 2021, the basic earnings and the diluted earnings per share are the same.

For the calculation of the weighted average number of shares outstanding, both the shares delivered under the previous 2019-2021 ILP and the shares acquired in connection with the

new 2022-2024 ILP were taken into account for the days on which they were actually outstanding in 2022.

1.8 Dividends distributed and proposed

a) Proposed distribution of profit attributable to the parent

The appropriation of 2022 profit corresponding to the parent Enagás, S.A. proposed by the Board of Directors and which will be submitted for approval by the General Shareholders' Meeting is as follows (in thousands of euros):

	2022
Dividends	450,058
Voluntary reserves	13,262
TOTAL	463,320

The dividend is subject to approval by the ordinary General Shareholders' Meeting and is not included as a liability in these Annual Accounts. This gross complementary dividend will amount to a maximum of 270,374 thousands of euros.

At a meeting held on November 21, 2022, the Board of Directors of Enagás, S.A. agreed to distribute an interim dividend charged against 2022 profit, based on the necessary liquidity statement, expressed in thousands of euros, amounting to 179,684 thousands of euros (0.688 euros gross per share), in accordance with Article 277 of the Spanish Corporate Enterprises Act.

The aforementioned interim dividend was paid on December 21, 2022.

1.9 Commitments and guarantees

ACCOUNTING POLICIES

A financial guarantee contract is a contract which requires that the issuer makes specific payments to repay the holder for losses incurred when a specific debtor does not fulfil payment obligations at maturity, in accordance with the original or modified conditions of a debt instrument. The rights and obligations associated with a financial guarantee will be considered as financial assets and financial liabilities. For subsequent valuation, a contract will be recognised as the greater amount of a) the amount resulting from standards relating to provisions (IAS 37) or b) accumulated amortisation of the initial measurement and possible accrued income.

The provisional accounting records prepared by the parent of the Group, in accordance with legal requirements and which presented balances sufficient for the distribution of the interim dividend in 2022, were as follows:

Interim accounting statement formulated on October 31, 2022

Net accounting result	(29,207)
10% legal reserve	—
Interim dividend received from Group
companies	485,539
Profit "available" for distribution	456,332
Forecast interim dividend	(179,684)
Forecast cash balance for the period from
October 31 to December 31:
Cash balance	27,850
Projected collection for the period
considered	406,723
Credit lines and loans available from
financial institutions	1,712,591
Payments projected for the period under
consideration (including the interim
dividend)	(181,896)
Estimated available financing after
dividend distribution	1,965,268

b) Total dividends paid

In addition to the aforementioned interim dividend for 2022, during 2022 Enagás, S.A. distributed the gross complementary dividend for 2021.

This dividend amounted to 266,718 thousands of euros (1.02 euros per share) and was paid on July 7, 2022.

An investment commitment corresponds to that obligation contracted with a related party which can give rise to outflows of funds or other resources in the future. The following is included among these: commitments not recognised in connection with contributing funds or resources as a consequence of incorporation agreements, capital intensive projects carried out by a joint venture, commitments not recognised in connection with providing loans or other financial support to the joint venture, or commitments not recognised in connection with acquiring a stake, regardless of whether a specific future event occurs or not.

Total
557,000
160,623
89,725
609,205
355,159
97,529

a) Guarantees for related parties debt

The "Guarantees on debt of related parties" heading includes the corporate guarantee granted by Enagás S.A. for financial institutions acquired in the Financing Agreement of November 30, 2018 in the company TAP, through which the following items are basically guaranteed:

• Principal and interest of the Financing Agreement provided by TAP at any time;
• Market value of the hedging instrument over the interest rate of the Financing Contract.

TAP reached the "Financial Completion Date" on March 31, 2021, a milestone that allowed the partners to replace the guarantees provided on the company's debt during the construction phase of the infrastructure with a mechanism for shareholder support for the repayment of the TAP loan (Debt Payment Undertaking), which will be in effect until its maturity, and which would be activated in the event of certain extraordinary events.

This support mechanism has been granted jointly by each of TAP's shareholders, so that Enagás would only be liable, in a hypothetical case, for the amount corresponding to it in accordance with its stake in TAP's share capital.

This support mechanism during the operating period is contractually limited by a cap in force throughout the life of the financing arrangement, so that the amounts claimed from Enagás may never exceed a total amount of 903,322 thousands of euros, regardless of the market value of the derivative or any other contingency.

At December 31, 2022 the amount guaranteed by Enagás, S.A. to the creditors of TAP amounted to 557,000 thousands of euros (609,205 thousands of euros at December 31, 2021).

b) Guarantees and sureties granted - Others

The following items are mainly included:

Group Personnel, Companies or Entities

• Guarantees and sureties granted to Group companies at December 31, 2022 include financial guarantees granted to third parties by Llewo Mobility, S.L., in the amount of 172 thousands of euros, counter-guaranteed by Enagás, S.A. (359 thousands of euros at December 31, 2021), and a corporate guarantee granted to a financial institution to support a credit facility arranged by the same company in February 2022, in the amount of 3,043 thousands of euros at December 31, 2022.
• Guarantees granted before the Federal Electricity Commission ("FEC") in connection with the service contracts relating to the Gasoducto de Morelos and Estación de Compresión Soto La Marina projects in the amount of 9,378 thousands of euros and 121 thousands of euros, respectively (8,791 thousands of euros and 105 thousands of euros respectively at December 31, 2021 within the heading "Other related parties", see Note 4.3).
• Guarantee of access to the electricity transmission grid, granted by Enagás Renovable, S.L.U. amounting to 5,040 thousands of euros (9,360 thousands of euros in 2021).

Third parties

The following items, mainly, are included:

• Technical guarantees granted by financial entities to third parties in the amount of 116,158 thousands of euros (100,802 thousands of euros in 2021) to cover certain responsibilities which may arise during the execution of the contracts constituting the activity of the Enagás Group.
• Guarantees and sureties granted by Enagás, S.A. totalling 23,900 thousands of euros to cover technical and operational risks related to the projects of the affiliate Efficiency for LNG Applications, S.L.
• Guarantee granted by Enagás Internacional S.L.U. covering its obligations in the contract with Sound Energy Morocco for the development of a project in Morocco, amounting to 633 thousands of euros (593 thousands of euros at December 31, 2021).
• In addition, there is an insurance policy with a bid bond for the port concession in Colombia for the Buenaventura project amounting to 1,412 thousands of euros (1,319 thousands of euros at December 31, 2021).
• A guarantee granted by a financial institution to third parties in the amount of 730 thousands of euros to support the application for an advance payment due to a subsidy granted by the Institute for Energy Diversification and Saving (IDAE).

No guarantees had been granted with respect to tender processes at December 31, 2022 and at December 31, 2021.

c) Investment commitments

The following items are included:

• The Enagás Group has firm investment commitments in Economic Interest Groupings (EIG) amounting to 10,345 thousands of euros, to be disbursed during 2022 and later years (36,529 thousands of euros at December 31, 2021).
• The Enagás Group has investment commitments for its shareholdings in two investment funds amounting to approximately 57,974 thousands of euros: (61,000 thousands of euros in 2021): (i) KLIMA Energy Transition Fund, which seeks investment opportunities through the acquisition of minority stakes in companies with high growth potential in energy transition sectors such as green hydrogen, biogas, energy efficiency, batteries, sustainable transport or digitalisation of electricity grids; and (ii) Clean H2 Infra Fund, which aims to develop the green hydrogen infrastructure sector and have a positive impact on the use and development of hydrogen transmission networks.
• The Enagás Group has investment commitments in other projects amounting to approximately 21,406 thousands of euros.

The Directors consider that no additional significant liabilities will arise in connection with the transactions disclosed in this note other than those already recognised in the accompanying Consolidated Balance Sheet.

1.10 New accounting standards

a) Standards and interpretations adopted by the European Union in force for the current financial year

The accounting policies used to prepare these Consolidated Annual Accounts are the same as those used to prepare the Consolidated Annual Accounts for the year ended December 31, 2021, as none of the rules, interpretations or amendments applicable for the first time this financial year have had a significant impact on the Group's accounting policies.

b) Standards and interpretations issued by the IASB but not effective for the current year

The Group has not applied in advance the standards, interpretations and amendments to the standards approved by the European Union that have not entered into force at the date of these Consolidated Annual Accounts. Although the Group is currently analysing its impact, based on the analyses carried out to date, the Group does not expect the initial application to have a material impact on its Consolidated Annual Accounts.

1.11 Aspects relating to the international situation

Covid-19

During the overall adverse economic situation of the previous year caused by the Covid-19 pandemic, both Enagás and its Group companies implemented contingency plans to ensure normal operation and continuity of natural gas supply both in Spain and in all the countries where these companies operate. Thus, during these years, including 2022, the going concern principle has continued to be fully applied in the preparation of these consolidated annual accounts.

With regard to the Enagás Group's main activity relating to the operation and maintenance of the Spanish gas system, it should be noted that this takes place within a stable regulatory framework and in the 2022 financial year, as in the previous year, no effects or changes have been identified as a result of the situation caused by Covid-19 that could lead to capital losses for the Group.

With regard to the liquidity situation, as indicated in Note 3.8, the Group has a solid liquidity situation and liquid assets of 3,793,773 thousands of euros at December 31, 2022 (3,299,544 thousands of euros at December 31, 2021), thus maintaining the liquidity strategy and the credit and exchange rate risk policies. During the 2022 financial year, as in the 2021 financial year, there have been no impairment of financial assets or nonfinancial assets, as well as no significant extraordinary expenses corresponding to this situation or provisions or contingent liabilities that have been included in the consolidated financial statements of the Enagás Group as of December 31, 2022.

Based on the Group's analysis, no impact was evidenced by the Covid-19 situation that needed to be recorded at December 31, 2022.

War in Ukraine

On February 24, 2022, Russia started an armed conflict in Ukraine, which continues at the date of authorisation for issue of these Consolidated Annual Accounts. Also, on March 29, 2022, Royal Decree-Law 6/2022 was published, adopting urgent measures within the framework of the National Response Plan to the economic and social impact of the invasion of Ukraine. As a consequence of this conflict, significant instability, uncertainty and volatility are being generated in world markets, as well as higher inflation and other negative effects on the world economy, with the energy sector being particularly affected. At the date of the Consolidated Annual Accounts, there have been no negative impacts on the Group's business or financial position as a result of this situation, although the Directors and management of the Group continue to monitor developments on an ongoing basis.

2. Operational performance of the group

RELEVANT ASPECTS

Operating profit

Operating profit amounted to 478 million euros.

Trade receivables

"Other receivables - Current" includes the balance pending settlement corresponding to the remuneration of regulated regasification, transmission and underground storage activities for 453 million euros corresponding to the 2022 financial year (284 million euros at December 31, 2021). (Note 2.2).

Property, plant, and equipment

This heading involves, at December 31, 2022, 44% of total assets (45% of total assets at December 31, 2021) (Note 2.4). The change is mainly due to:

• Additions of 69 million euros, corresponding mainly to the renewal of equipment and complementary measures at the Barcelona, Cartagena and Huelva plants and the construction of a motor-compressor unit for the Coreses and Almendralejo Compressor Stations.
• The provision for amortisation for the period, in the amount of 249 million euros (250 million euros in 2021).

Current status of the Castor storage collection rights

Regarding the Castor storage facility, on November 8, 2019, the Council of Ministers Agreement was published, ending the hibernation of the Castor underground storage facility and agreeing on its dismantling in phases, assigning the work to Enagás Transporte. This Agreement confirmed the Group's obligation to continue to carry out all operations necessary for maintenance and operation of the facilities referred to in article 3.2 of Royal Decree-Law 13/2014 until the final phase of dismantling has been completed, obligations that have been fulfilled up to the date of preparation of these Annual Accounts.

• As a result of the 2018 Supreme Court rulings that annulled various regulations establishing the terms of remuneration for the obligations related to the management of infrastructures, and in view of the need to establish an alternative mechanism to obtain the corresponding remuneration for the aforementioned tasks with which the Group is legally entrusted and which it still currently performs, on December 18, 2018, the Group, through Enagás Transporte, filed a claim for property liability with the Ministry for the Ecological Transition, which, after being rejected due to the administrative silence, has been pursued before the National High Court through the filing of the corresponding contentious administrative claim on October 3, 2019 (in the second half of 2022, the contentious administrative chamber of the National High Court filed a question of jurisdiction in the Supreme Court, a date for the voting and decision not having been set at the time of the preparation of this document).
• Thus, the damages lawsuit consists of continuing in the jurisdiction of the claim that has already been filed by the Company to recover the amounts deducted, in accordance with the legal conclusions of the external and internal advisors. Based on the above, the account receivable for the right of Enagás Transporte, S.A.U., to be paid for the Castor underground storage administration, is maintained in the balance sheet, the conclusion being that there is no negative impact on the Group's financial statements for the financial year (Note 2.2 and 4.9).

Current status of the El Musel Port regasification plant (Gijón)

• Regarding the situation of the regasification plant in the Port of El Musel (Gijón), on July 1, 2022, the decision of the Directorate General of Energy Policy and Mines was published on June 28, 2022, granting Enagás Transporte, SAU, the administrative authorisation and approval of the project for the execution of the facilities for the reception, storage and regasification of liquefied natural gas in the Port of El Musel, Gijón (Asturias).The Group continues to make progress in the process of obtaining the commissioning and specification of the corresponding remuneration model, so that the infrastructure can enter into operation in the gas system in accordance with the regulatory framework established in Royal Decree 335/2018 (Note 2.4 and 4.9).
• Article 19 of Circular 9/2019, as well as the CNMC Resolutions of February 11, 2021 and May 20, 2021 regulate the remuneration of the facility for the 2021-2026 regulatory period.

2.1 Operating profit

ACCOUNTING POLICIES

Recognition of income

• The Enagás Group measures revenue at the fair value of the consideration received or receivable and represents balances receivable for goods delivered and services provided in the normal course of business, net of discounts and amounts received from third parties such as VAT reimbursements.
• Ordinary revenue from the rendering of services is recognised by reference to the stage of completion of the transaction at the balance sheet date, provided the result of the transaction can be estimated reliably.
• Specifically, income relating to Technical Management of the System (GTS) is regulated by a public body (Appendix III). They are calculated annually on the basis of Enagás GTS, S.A.U.'s remuneration methodology, currently in force for the 2021-2023 and 2024-2026 regulatory periods. Only the revenues from the regulatory account and guarantees of origin are calculated on the basis of the substantiated cost. The monthly attribution of this income to the Income Statement is almost entirely carried out on a straight-line basis.
• Income arising from regasification, storage, and transmission activities in Spain is calculated based on a regulated remuneration system (Appendix III). Remuneration is made up of several terms that aim to remunerate investment, operation and maintenance costs and other items related to improved productivity and efficiency. The return on investment is the sum of amortisation and financial remuneration, calculated by applying the annual net value of the investment and the financial remuneration rate set for each regulatory period.

The remuneration for productivity and efficiency gains includes the term of the continuity of supply remuneration set in the 2014 regulatory reform. As of 2021, this term will be calculated on the basis of the value established for 2020, adjusted by coefficients that no longer depend on fluctuations in demand.

Once the regulatory useful life of the facilities has elapsed, and in those cases in which the asset remains operational, the operating and maintenance costs are established as fixed remuneration, increased by a coefficient based on the number of years by which the facility exceeds the regulatory useful life, not accruing any amounts as investment remuneration.

• On January 1, 2021, the new regulatory and remuneration framework came into force with the publication of Circulars 9/2019 of December 12, 2019 and 8/2020 of December 23, 2020 and Royal Decree 1184/2020 of December 29, 2020. The main items of this regulatory reform are set out in Appendix III.
• The Group's deferred income mainly corresponds to the accrual of amounts received for connecting the basic network infrastructure of Enagás Transporte, S.A.U. and Enagás Transporte del Norte, S.L. with networks of distribution companies, secondary transmission companies, gas shippers, and qualified customers. Said income is recognised based on the useful life of the assigned facilities.

Based on the types of contractual agreements supporting this type of income, it has been determined that there is an implicit financing component which, under the new regulatory requirements, must be recognised as a liability in the Consolidated Balance Sheet.

a) Income

The breakdown of Revenue is as follows:

The details of revenues with the breakdown of revenues from customer contracts at December 31, 2022 and December 31, 2021 is as follows:

Revenue	2022	2021
Regulated activities:	950,440	967,607
Other	950,440	967,607
Non-regulated activities:	6,660	8,079
From customer contracts	4,390	6,215
Others	2,270	1,864
Total revenue	957,100	975,686
Other operating income	2022	2021
From customer contracts	8,850	8,601
Others	4,359	6,886
Total Other operating income	13,209	15,487

The distribution of the Revenue based on the Group Companies from which it comes for 2022 and 2021 is as follows:

Revenue	2022	2021
Regulated activities:	950,440	967,607
Enagás Transporte, S.A.U.	900,194	917,024
Enagás Transporte del Norte,	21,008	24,051
S.L. Enagás GTS, S.A.U.	29,238	26,532
Non-regulated activities:	6,660	8,079
Enagás Transporte, S.A.U.	2,007	2,889
Enagás Internacional, S.L.U.	235	525
Enagás México	1	128
Enagás Transporte del Norte,	447	447
S.L. Enagás Perú	3	831
Remaining companies	3,967	3,259
Total	957,100	975,686

The Management of the Enagás Group considers that there is no collection uncertainty relating to the income indicated above and therefore has not ceased to recognise any type of income for this reason.

b) Personnel expenses

Personnel expenses	2022	2021
Wages and salaries	98,646	97,382
Termination benefits	11,267	3,644
Social Security	21,625	20,866
Other personnel expenses	10,384	10,510
Contributions to external pension
funds (defined contribution plan)	2,939	2,025
Works for fixed assets (Note 2.4)	(4,447)	(4,680)
Total	140,414	129,747

In 2022, wages and salaries include the fair value of services received as consideration for equity instruments granted, in the amount of 1,279 thousands of euros at December 31, 2022 corresponding to the portion of the Long-Term Incentive Plan payable in Enagás, S.A. shares and approved on March 31, 2022 for the Executive Director and senior management, thus representing a share-based transaction. At December 31, 2021, it included 2,127 thousands of euros corresponding to the portion of the Long-Term Incentive Plan payable in Enagás, S.A. shares (2019-2021) approved on March 29, 2019. Services rendered corresponding to the portion of the incentive plan payable in cash were also recognised with a credit to "Provisions" under non-current liabilities, in the amount of 573 thousands of euros at December 31, 2022, corresponding to the Long-Term Incentive Plan (2022-2024). The amount recognised at December 31, 2021 amounted to 747 thousands of euros and corresponded to the same item regarding the Long-Term Incentive Plan in force at that time, i.e. for the period 2019-2021. In addition, the employee benefits expense arising from the bonus payable every three years for contribution to results for the 2022-2024 period and corresponding to the remaining personnel of the Group was also included in the amount of 1,740 thousands of euros. The amount of 2,011 thousands of euros was included in 2021, derived from the bonus payable every three years corresponding to the previous period, 2019-2021.

The Enagás Group contributes, in accordance with the Pension Plan signed and adapted to the Law on Pension Plans and Funds, to an "Enagás Pension Fund" defined contribution plan, managed by Gestión de Previsión y Pensiones, S.A. with Banco Bilbao Vizcaya Argentaria, S.A. as custodian, which covers the Group's commitments to the workforce in question. The aforesaid plan recognises certain vested rights for past service and undertakes to make monthly contributions averaging 4.24% of eligible salary (4.18% in 2021). It is a mixed plan covering retirement benefits, disability and death. The total number of people adhered to the plan at December 31, 2022 totalled 1,219 participants (1,192 participants at December 31, 2021). The contributions made by the Group in this heading each year are recorded under "Personnel expenses" of the Consolidated Income Statement. At 2022 year-end there were no amounts pending payment with respect to this item.

In addition, the Group has outsourced its pension commitments with respect to its senior managers through a mixed group insurance policy for pension commitments, including benefits in the event of survival, death, and employment disability.

The average number of Group employees broken down by professional category is as follows:

As at December 31, 2022, the Group's workforce consists of 1,396 employees (1,376 employees in 2021) whose distribution by professional group and gender is as follows:

		2022		2021
Categories	Women	Men	Women	Men
Management	47	91	45	112
Technical personnel	236	498	242	491
Administrative
personnel	90	9	89	9
Workers	48	377	23	365
Total	421	975	399	977

"Management" includes senior executive management of the Group, comprising ten persons (seven men and three women).

The average number of staff during 2022 and 2021 employed by Group companies with disabilities greater than or equal to 33%, broken down by categories, is as follows:

Categories	2022	2021
Technical personnel	1	1
Administrative personnel	2	2
Workers	4	3
Total	7	6

c) Other operating expenses

Other operating expenses	2022	2021
General and Administrative Expenses:
R+D expenses	549	585
Leases and royalties (1)	3,844	3,319
Repairs and conservation	51,650	49,054
Freelance professional services	22,155	29,654
Transport	545	284
Insurance premiums	8,878	8,025
Banking and similar services	352	304
Advertising, publicity and public
relations	4,340	3,271
Supplies	57,480	33,688
Other services	38,624	19,675

General and Administrative Expenses	188,417	147,859
Taxes	13,050	16,124
Other current management expenses	20,255	9,258
Other external expenses	11,924	10,304
Change in traffic provisions	100	127
Total	233,746	183,672

(1) This account includes expenses for leases, which are excluded from IFRS 16 as they relate to assets of low value or with a term of less than one year, amounting to 2,768 thousands of euros at December 31, 2022. (2,954 thousands of euros at December 31, 2021).

2.2 Trade and other non-current and current receivables

ACCOUNTING POLICIES

Financial assets are recognised in the Consolidated Balance Sheet at the transaction date when the Group becomes party to the contractual terms of the instrument.

Financial assets measured at amortised cost

• This heading comprises financial assets arising from the sale of goods or the rendering of services in the course of the Company's business, or financial assets which, not having commercial substance, are not equity instruments or derivatives with fixed or determinable payments and are not traded in an active market.
• The said financial assets are initially recognised at fair value of the consideration paid, plus transaction costs directly attributable to the acquisition. They are subsequently measured at amortised cost and related interest accrued at the corresponding effective interest rate is recognised in the Consolidated Income Statement.
• Receivables which do not bear explicit interest are recognised at their face value whenever the effect of not discounting the related cash flows is not significant. Subsequent measurement in this instance is still carried out at face value.
• The Group derecognises financial assets when the contractual rights to the cash flows from the financial asset expire or are transferred, which implies transferring substantially all the risks and rewards inherent in ownership of the financial asset; this is the case in firm asset sales, trade receivable factoring transactions in which the Group retains neither credit risk nor interest rate risk, sales of financial assets with an agreement to repurchase them at their fair value, and securitisations in which the Group neither retains subordinated financing, grants any form of guarantee nor assumes any other type of risk.
• In contrast, the Group does not derecognise financial assets, but rather recognises a financial liability at an amount equal to the consideration received, in the transfer of financial assets in which it retains substantially all the risks and rewards incidental to ownership, such as discounted bills, recourse factoring, disposals of financial assets under repurchase agreements at fixed prices or at the sales price plus interest, and securitisations of financial assets in which the Group retains subordinate liability or grants other types of guarantees which would substantially absorb all possible losses.

SIGNIFICANT ESTIMATES AND JUDGEMENTS

• An impairment loss on financial assets measured at amortised cost arises when there is objective evidence that the Group will not be able to recover all the corresponding amounts in accordance with the original terms established. The impairment loss is recognised as an expense in the Consolidated Income Statement and is determined as the difference between the carrying amount and the present value of future cash flows discounted at the effective interest rate.
• If, in subsequent periods, the value of the financial asset measured at amortised cost recovers, then the impairment loss is reversed. The reversal shall not result in a carrying amount of the financial asset that exceeds the carrying amount had the impairment not been recognised. The reversal is recognised in the Consolidated Income Statement.
• From January 1, 2018, with the application of IFRS 9, the Group recognises an impairment loss for expected credit losses on financial assets.
• The Group assess the expected credit losses of a financial instrument in a way that reflects:

a) an amount weighted based on probability and not biased, determined by evaluating a series of possible outcomes;

b) the temporal value of money; and

	12.31.2022	12.31.2021
Customer receivables for sales
and services rendered	16,271	49,608
Accounts receivable from
contracts with customers	2,600	1,842
Accounts receivable from
contracts with customers and
associates	3,660	2,073
Associate Companies	9,345	10,153
Other receivables	456,917	302,468
Subtotal	488,793	366,144
Value added tax	24,238	16,565
Trade and other current
receivables	513,031	382,709
Trade and other non-current
receivables (Note 3.3.a)	54,197	150,833

a) Trade and other non-current receivables

This section includes, inter alia, information on:

• Account receivable related to the claim of asset liability presented before the Council of Ministers to recover the costs incurred in the project of the LNG Regasification Plant of the Port of Granadilla (GASCAN) for an amount of 18,929 thousands of euros (see detail below).

c) reasonable and well-founded information available on the date of information, without cost or disproportionate effort, on past events, current conditions and forecasts of future economic conditions.

Under the new standard, an entity will measure the value correction for losses of a financial instrument in an amount equal to the expected credit losses during the life of the asset, if the risk of that financial instrument has increased significantly since its initial recognition.

Conversely, that is, if the credit risk of a financial instrument has not increased significantly since the initial recognition, an entity will measure the value correction for losses at an amount equal to the expected credit losses in the next 12 months.

The gain or loss resulting from impairment of value, the amount of the expected credit losses (or reversals) by which it is required that the value adjustment for losses be adjusted on the posting date to reflect the amount to be recognised under this standard will be recorded in the profit for the period.

In the case of the Enagás Group, practically all financial assets present a low credit risk at the date of posting, and their exposure to events that generate credit losses during the next 12 months is therefore calculated.

• The year 2021 included receivables related to the administration and operations tasks necessary for the maintenance and operation of the Castor Storage Facility. These receivables have been reclassified to short-term during 2022, as it is estimated that a judgement will be passed and enforced in less than 12 months (see Note 2.2.b).
• The amount corresponding to facilities pending recognition is recorded in the long term as the Directors estimate that they will be recognised in a time horizon of more than one year and will result in a higher future collection of 6,923 thousands of euros (at December 31, 2021 the amount of facilities pending recognition in the long term represented a lower collection of 2,270 thousands of euros).

Financial investment in the Gascan project

In relation to the situation of the regasification assets of the Gascan project in the Canary Islands, on February 21, 2022, the High Court of Justice was notified of the ruling rejecting the contentious-administrative appeal against the rejection by silence of the application for new administrative authorisation of the LNG regasification plant project.

Once the aforementioned ruling became final, on July 6, 2022, a claim for asset liability was submitted to the Council of Ministers, with the aim of implementing an alternative mechanism to recover the costs incurred in said project, considering, based on the legal conclusions, that the recovery of the assets associated with the project is highly probable.

Since the filing of this claim, the assets and liabilities associated with the project have been reclassified as long-term receivables, for an initial amount of 18,655 thousands of euros, as well as late-payment interest, with no impact on the Enagás Group's income statement.

b) Trade and other current receivables

In the "Other receivables" heading, under current assets, the Enagás Group mainly records the outstanding balance corresponding to the remuneration of regulated regasification, transmission and underground storage activities at the end of financial years 2022 and 2021, in the amount of 452,695 thousands of euros and 284,329 thousands of euros, respectively. It should be noted that, in accordance with the regulations described in Appendix III, the "2023 gas year" began in October, and the amount pending collection for that year is 238,941 thousands of euros. At December 31, 2021, the balance pending settlement for the 2022 gas year amounted to 184,490 thousands of euros.

In relation to the balance pending settlement of the 2022 gas year, the best estimate of the surplus for that year amounting to 239,461 thousands of euros has been reclassified to shortterm liabilities, leaving only an amount of 109,032 thousands of euros corresponding to facilities pending recognition under the heading of other receivables for the "2022 gas year".

The heading "Other receivables" also includes accounts receivable related to the administration and operations tasks necessary for the maintenance and operation of the Castor Storage Facility, reclassified under this heading during the 2022 financial year, amounting to 94,253 thousands of euros at December 31, 2022 (83,269 thousands of euros at December 31, 2021), the specific circumstances of which are set out in the following heading.

"Accounts receivable from contracts with customers" include the following items, broken down in accordance with IFRS 15:

		12.31.2022 12.31.2021
Accounts receivable from contracts
with customers	2,565	1,812
Accounts receivable from contracts
with customers and associates	2,119	665
Accounts receivable invoices to be
issued from contracts with
customers	35	30
Outstanding accounts receivable
invoices to be issued from customer
contracts, group companies and	1,541	1,408
associates

The Company has not registered assets under contracts at December 31, 2022 or December 31, 2021.

At December 31, 2022, the Company did not have significant impairment losses on balances receivable from contracts with customers, either registered as accounts receivable or as unissued invoices.

Situation of Castor Storage Facility

As explained in Note 9.1 to the 2014 Annual Accounts of Enagás Transporte S.A.U. on October 4, 2014 the Official State Gazette published Royal Decree-Law 13/2014 of October 3, by virtue of which urgent measures were adopted in connection with the gas system and title to the nuclear power plants, with a view to guaranteeing the security of people, goods, and the environment with respect to the Castor natural gas underground storage facility, which establishes, among other matters, the following:

• The termination of the operating concession for the Castor underground storage facility, granted by Royal Decree-Law 855/2008, of May 16.
• The hibernation of the facilities associated with said concession.
• The appointment of Enagás Transporte, S.A.U. for administration of said facilities, for the sole purpose of carrying out the necessary measures for maintenance and operability during the hibernation period, prioritising the goal of guaranteeing the security of the facilities for persons, goods, and the environment, while ensuring compliance with applicable regulations. Likewise, the decision included the stipulation that the maintenance and operational costs be paid to Enagás Transporte, S.A.U. with a charge to income from tolls and royalties of the gas system.
• The recognition of the investment made for the storage facility by the titleholder of the concession which was extinguished with 1,350,729 thousands of euros, and the establishment of a payment obligation for said amount by Enagás Transporte, S.A.U. to the titleholder of the extinguished concession. As a result of assuming the payment obligation, Enagás Transporte, S.A.U. enjoys the right to collect access tolls and royalties from the gas system's monthly invoicing for 30 years, for the amount paid to the titleholder of the extinguished concession plus the financial remuneration which the Royal Decree-Law expressly recognises. Likewise, this Royal Decree-Law contains the necessary measures to guarantee full effectiveness of this collection right, that said right could be freely available to Enagás Transporte, S.A.U. or its third party titleholders, and could consequently be totally or partially ceded, transferred, discounted, pledged, or taxed in favour of any third parties, including securitisation funds or other special purpose vehicles or companies, either domestic or international. The cession of the collection right will be effective with respect to the gas system, which will pay the new titleholder the corresponding amounts.

In light of the above, on October 4, 2014, Enagás Transporte, S.A.U. signed an agreement with various financial entities by virtue of which it ceded the collection right charged to the gas system awarded by the aforementioned Royal Decree-Law, with said entities assuming the payment obligation imposed on Enagás Transporte, S.A.U. In this manner, on November 11, 2014, said financial entities made a payment of 1,350,729 thousands of euros to the titleholder of the extinguished concession.

Furthermore, Enagás Transporte, S.A.U. transferred the aforementioned contractual obligations and rights inherent to ownership of the financial asset to said financial entities, thus derecognising it from the balance sheet as the Sole Director of the Company considers that all associated risks and benefits have been transferred.

On December 21, 2017 the Constitutional Court handed down sentence No. 152/2017 declaring various provisions of Royal Decree-Law 13/2014 as unconstitutional and null and void due to formal errors. Specifically, (i) acknowledgement of the investment made by the renouncing concessionaire and costs accrued up to the date of said norm becoming effective, and thus the consideration in the amount of 1,350,729 thousands of euros, as well as (ii) recognition of the correlated collection right of Enagás Transporte, S.A.U. with respect to the gas system for the amount of consideration cited, considering that in both cases the reasons given for the urgency were not justified and therefore said measures should be excluded from the ordinary legislative procedure.

Notwithstanding the foregoing, the Constitutional Court did declare the following as constitutional and valid: (i) adoption of the decision to hibernate the underground storage facility; (ii) the declaration of the extinction of the concession; and (iii) the appointment of Enagás Transporte, S.A.U. for administration of the facilities to the extent the hibernation is prolonged; as well as (iv) recognition of the right to obtain remuneration for the maintenance and operability costs for Enagás Transporte, S.A.U., including any costs incurred for the administration and other related work which said Royal Decree-Law established as a requirement.

In accordance with the analysis carried out by the Company's external legal advisors, the purchase-sale contract for the collection rights signed by Enagás Transporte, S.A.U. with the financial entities represents the transfer of rights and obligations to the financial entities and in no case does it enable the buyers (or their possible transferees) the possibility of claiming reimbursement for the price received or payment of any other amounts from the seller. Thus, in no case can adverse effects arise in connection with the financing of the operation for the Company due to the sentence of the Constitutional Court, as Enagás Transporte, S.A.U. is not titleholder to the collection right which was annulled nor is it obliged to pay the titleholder of the extinguished concession.

In addition, in relation to the above, the Supreme Court issued a ruling on October 27, 2020 partially upholding the contentious-administrative appeal filed by the financial institutions against the alleged rejection by the Council of Ministers of the claim for liability of the Legislature for the partial unconstitutionality of Royal Decree-Law 13/2014, recognising the right of these appellant banks to compensation, by way of liability of the Legislature, of the total debt recognised in their favour, in the amount of 1,350,729,000 euros plus the corresponding legal interest accrued.

Likewise, in accordance with the analysis carried out and the conclusions drawn by the Company's legal advisors and external legal advisors, the aforementioned sentence of the Constitutional Court does not give rise to any negative effect on the right of Enagás Transporte, S.A.U. to obtain remuneration for the administration and operations necessary for maintenance and operability of the infrastructure, as the Royal Decree-Law was not affected in such a manner by the declaration of unconstitutionality. Similarly, on the basis of these same conclusions, it is not believed that there has been any negative effect from the process that targets the liability of the Legislator State to financial institutions, since all the risks and benefits of the financial asset have been contractually transferred to the latter and the Supreme Court has also issued a final ruling in their favour.

During 2022, no judicial or regulatory pronouncements have taken place in relation to the various rulings of previous years referring to the declaration of unconstitutionality of certain articles of Royal Decree-Law 13/2014, beyond those associated with the ordinary procedural actions of the proceedings that remain in progress.

Notwithstanding the above, it should be noted that since 2014 Enagás Transporte, S.A.U. has been performing the functions of administrator of the Castor storage facility, which it was legally obliged to do in accordance with the provisions of sections 1 and 2 of Article 3 of Royal Decree-Law 13/2014, which imposed on it the assumption of the administration of the facilities and of the ownership of all the rights and obligations associated with them during the entire period up to the end of the hibernation period through an agreement of the Council of Ministers referred to in Article 1.2 of the aforementioned Royal Decree-Law 13/2014.

In relation to the Castor storage facility, on November 8, 2019, the Council of Ministers published an agreement ending the hibernation of the Castor underground storage facilities and agreeing to dismantle them in phases, assigning the work to Enagás Transporte and including all the operations required for the maintenance and operation of the facilities referred to in Article 3.2 of Royal Decree-Law 13/2014 until the last phase of dismantling is completed.

With all of the above, in practice, the adoption of the aforementioned Agreement has not meant that Enagás Transporte has ceased to attend to the tasks it had been carrying out to guarantee the safety of people, property and the environment but, on the contrary, it has confirmed its obligation to continue to carry out all of the operations required for the maintenance and operation of the facilities referred to in Article 3.2 of Royal Decree-Law 13/2014 until the last phase of dismantling is completed.

And given that, due to carrying out these tasks, formerly as a storage administrator, and now as a dismantling manager, Enagás Transporte, S.A.U., has so far been assuming the costs derived from the operations maintenance and operations imposed, as well as those for the full assumption of the administration and dismantling of the storage; and given that, in addition, the right of this company to obtain remuneration for the functions entrusted by Royal Decree-Law 13/2014 and developed in relation to Castor storage remains in force, since it does not derive from Article 6, annulled by the Constitutional Court, but is expressly recognised in Article 3.2 of the former, which subsists, it is considered that the right of Enagás

Transporte, S.A.U. to receive the remuneration for the costs incurred is beyond any doubt, with only the specific terms in which this right is specified remaining in doubt, since Article 6 has been annulled.

In view of the foregoing and as it is necessary to implement an alternative mechanism to receive the remuneration for said tasks, legally entrusted to Enagás Transporte and which the company is still currently carrying out, on December 21, 2018, Enagás Transporte, S.A.U. filed a claim for damages with the Ministry for Ecological Transition, requesting (i) the right of Enagás Transporte, S.A.U. to obtain compensation, for the damages sustained as a result of the administration tasks of the facilities, plus the pertinent interests, (ii) payment of the amounts corresponding to the remuneration for the costs assumed by Enagás Transporte, S.A.U., up to the moment when the resolution is issued, plus the pertinent interests, and (iii) the right of Enagás Transporte, S.A.U. to obtain compensation for the damages that may be caused to it as a consequence of the tasks of administering the facilities until such time as the Council of Ministers adopted an agreement that would put an end to the storage hibernation situation.

The aforementioned claim for liability filed on December 21, 2018 was rejected by a presumptive resolution of the Ministry for Ecological Transition. On October 3, 2019 action was pursued before the National High Court through the filing of the corresponding contentious-administrative appeal against the aforementioned presumptive resolution in order to recover all amounts corresponding to the tasks entrusted, which Enagás has continued to provide to date. With regard to this contentious-administrative appeal, in the second half of 2022, the Administrative Chamber of the National High Court filed a question of jurisdiction with the Supreme Court, which, at the date of drafting these accounts, is pending a date for voting and ruling.

According to the legal conclusions of the external and internal advisors, it is considered that this damages lawsuit is the mechanism initiated by the Company for recovering both the amounts deducted from the remuneration corresponding to financial year 2017, the amounts not paid referring to financial years 2018 and the following, and the amounts that have been refunded as a result of the review actions by the CNMC in relation to the settlements corresponding to 2014, 2015 and 2016, included in the final approved settlements of the 2015 and 2016 years, as well as their possible interests. Based on the above, the account receivable for the right of Enagás Transporte, S.A.U. to be paid for the performance of the works and for the administration of the Castor underground storage is maintained in the balance sheet, the conclusion being upheld that there is no negative impact on the Company's financial statements as a result of the judgements of the Constitutional Court or the Supreme Court mentioned above.

Based on the above, the account receivable for the right of Enagás Transporte, S.A.U. to be paid for the performance of the works and for the administration of the Castor underground storage is maintained in the balance sheet, the conclusion being upheld that there is no negative impact on the Group's financial statements as a result of the judgements of the Constitutional Court or the Supreme Court applied in previous years (Note 2.2).

At December 31, 2022, the amount recognised as Group revenue during 2014 to 2022 relating to the activities and work associated with the Castor storage facility infrastructure by the Enagás Group that are pending collection amounts to 94,283 thousands of euros

2.3 Trade and other payables

ACCOUNTING POLICIES

Trade and other payables are financial liabilities that do not accrue explicit interest and are recognised at their face value provided the effect of financial discounting is not significant.

The heading "Trade and other payables" includes balances payable to suppliers under reverse factoring arrangements where the financial terms are not materially different from those of other suppliers or creditors. In this regard, it should be noted that payments corresponding to reverse factoring payments to suppliers are presented as part of operating activities in the Cash Flow Statement.

The breakdown of the heading "Trade and Other Payables" for 2022 and 2021 is as follows:

Trade and other payables	12.31.2022	12.31.2021
Debts with related companies	1,800	658
Rest of suppliers	615,272	358,319
Other creditors	12,668	18,535
Subtotal (Note 3.3.b)	629,740	377,512
Value added tax (Note 4.2.)	670	768
Public Treasury, payable for withholdings and other (Note 4.2.)	79,824	34,510
Total	710,234	412,790

Information on the average payment period

Below follows the information required by the Additional provision three of Law 15/2010 of July 5 (amended by Final provision two of Law 31/2014 of December 3) prepared in accordance with the Resolution of the ICAC of January 29,

2016, as well as by Law 18/2022, of September 28, on the creation and growth of companies, together with ICAC Consultation 1-132 of October 2022, regarding information to be included in the notes to the Annual Accounts in relation to the average payment period to suppliers in commercial operations.

The maximum payment term applicable to Group companies in 2022 under Law 3/2004, of December 29, establishing measures to combat late payments in commercial transactions, is 60 days. In order to obtain the foregoing information, payment obligations that have been the object of withholdings as a result of embargoes, enforcement orders, administrative compensation proceedings, or other similar acts handed down by legal or administrative bodies were excluded.

Days	2022
Average payment period to suppliers (1)	14
Amount	2022
Total payments made in a period shorter than
the maximum period (2) (3)	1,665,008
Number of invoices paid in a period shorter than
maximum period	49,607
Percentage	2022
% Volume of payments in a period shorter than	91 %
the maximum period % Invoices paid in a period shorter than the	70 %
(1) The Enagás Group's average payment period in 2021 was 25 days. maximum period

(2) Total volume of payments in 2021 amounted to 553,556 thousand of euros

(3) This amount includes payments related with the transactions that Enagas Group performs as a Technical Management of the System (GTS).

2.4 Property, plant, and equipment

ACCOUNTING POLICIES

• The cost model is applied, that is, the corresponding assets are measured at acquisition or production cost less the corresponding accumulated amortisation and any impairment losses.
• Acquisition or production cost includes:
• Finance expenses relating to the financing of infrastructure projects accrued only during the construction period, when the building work lasts for more than one year. In 2022 and 2021, no financial expenses were capitalised for this item.
• Personnel expenses directly related to work in progress, lowering personnel expenses in the amount of 4,447 thousands of euros at December 31, 2022 (4,680 thousands of euros at December 31, 2021) (Note 2.1.b).
• The book value of these assets includes an estimate of the current value of the costs to the Group for the dismantling tasks, credited to the "Long-term provisions" heading (Note 2.9.a) of the accompanying Consolidated Balance Sheet. This provision is subject to periodic review, in order to monitor possible changes in any of the hypotheses used to estimate decommissioning costs, in this case assuming the corresponding change in book value, which would be made prospectively, as has been previously indicated in Note 2.9.a to the Consolidated Annual Accounts.
• Non-extractable gas required for exploitation of underground natural gas storage (cushion gas) is recognised under PP&E, depreciated over the specific prevailing useful life (20 years) or over the leasing period if less.
• Natural gas required for minimum levels in gas pipelines and minimum operating levels for regasification plants, (also called "heel gas") is recognised as PP&E that cannot be amortised given that it is not available for sale as indicated under current regulations. It is measured at the purchase price as indicated in Order ITC/3993/2006 an Order IET/2736/2015.
• The restatement of assets recognised under PP&E in accordance with Royal Decree-Law 7/1996 of June 7, on balance sheet restatements, has an effect of 3,271 thousands of euros on amortisation charges in 2022 (3,276 thousands of euros in 2021).
• On January 1, 2021, the new regulatory and remuneration framework came into force with the publication of Circulars 9/2019 of December 12, 2019 and 8/2020 of December 23, 2020 and Royal Decree 1184/2020 of December 29, 2020. (Appendix III).

Grants

The official grants relating to the assets recognised under PP&E lower the acquisition cost of said assets and are taken to the income statement over the foreseen useful lives of the corresponding assets, decreasing the related amortisation.

SIGNIFICANT ESTIMATES AND JUDGEMENTS

• PP&E items are amortised using the straight-line method, applying annual amortisation rates that reflect the estimated useful lives of the corresponding assets.
• The Directors consider that the carrying amounts of the assets do not exceed the recoverable amounts which result from calculating discounted future cash flows generated by said assets based on foreseen remuneration under current regulations.
• For lease assets arising from the application of IFRS 16 as of January 1, 2019, the average term considered in each of the leases has been determined on the basis of both the economic substance and the contractually agreed duration as well as the assumptions on the extension/early termination of the contracts.
• Depreciation is carried out on a straight-line basis in accordance with the following useful lives:

	Annual rate	Useful life (years)
Buildings	2%-5%	50 – 20
Technical facilities	2.5%-5%	40–20
(transmission network)
Tanks	5%	20
Underground Storage Facilities	5%-10%	20–10
Cushion gas	5%	20
Other technical facilities and
machinery	2.5%-12%	40 – 8.33
Equipment and tools	30%	3.33
Furniture and fixtures	10%	10
Information technology
equipment	25%	4
Transport equipment	16%	6.25

2022	Opening	Inputs or	Increases or	Decreases,	Balance at
Land and buildings	balance 496,537	provisions 7,617	decreases due to —	disposals or (40)	year 504,114 -end
Technical facilities and machinery	9,388,489	7,597	transfers 39,222	reductions (60,313)	9,374,995
Other facilities, tools, and furniture	194,304	3,174	—	(145)	197,333
Prepayments and work in progress	610,024	50,381	(39,222)	(41,257)	579,926
Capital grants	(605,776)	(156)	—	4,140	(601,792)
Total cost	10,083,578	68,613	—	(97,615)	10,054,576
Land and buildings	(238,193)	(15,324)	—	14	(253,503)
Technical facilities and machinery	(5,672,778)	(231,808)	—	9,480	(5,895,106)
Other facilities, tools, and furniture	(83,392)	(10,893)	—	87	(94,198)
Capital grants	450,936	9,181	—	(3)	460,114
Total amortisation	(5,543,427)	(248,844)	—	9,578	(5,782,693)
Technical facilities and machinery	(14,962)	(367)	—	—	(15,329)
Prepayments and work in progress	(96,637)	(812)	—	5,807	(91,642)
Total impairment	(111,599)	(1,179)	—	5,807	(106,971)
Land and buildings	258,344	(7,707)	—	(26)	250,611
Technical facilities and machinery	3,700,749	(224,578)	39,222	(50,833)	3,464,560
Other facilities, tools, and furniture	110,912	(7,719)	—	(58)	103,135
Prepayments and work in progress	513,387	49,569	(39,222)	(35,450)	488,284
Capital grants	(154,840)	9,025	—	4,137	(141,678)
Net carrying amount of property, plant, and equipment	4,428,552	(181,410)	—	(82,230)	4,164,912

Opening	Inputs or	Increases or	Decreases,	Balance at
balance 477,181	provisions 25,810	decreases due to —	disposals or (6,454)	year 496,537 -end
9,213,934	181,840	transfers 19,628	reductions (26,913)	9,388,489
187,859	7,272	—	(827)	194,304
563,978	68,209	(19,628)	(2,535)	610,024
(602,268)	(3,508)	—	—	(605,776)
9,840,684	279,623	—		(36,729) 10,083,578
(222,545)	(15,654)	—	6	(238,193)
(5,440,849)	(234,809)	—	2,880	(5,672,778)
(76,116)	(10,267)	—	2,991	(83,392)
440,561	10,375	—	—	450,936
(5,298,949)	(250,355)	—	5,877	(5,543,427)
(14,962)	—		—	(14,962)
(96,362)	(1,047)	-	772	(96,637)
(111,324)	(1,047)	—	772	(111,599)
254,636	10,156	—	(6,448)	258,344
3,758,123	(52,969)	19,628	(24,033)	3,700,749
111,743	(2,995)	—	2,164	110,912
467,616	67,162	(19,628)	(1,763)	513,387
(161,707)	6,867	—	—	(154,840)
4,430,411	28,221	—	(30,080)	4,428,552

The increase in the year in the "Technical facilities and machinery" heading is mainly due to the Valencia - Alicante and Pos. 31 Villar de Arnedo CS - Haro CS twin-tube pipeline laying for an amount of 1,640 thousands of euros, the renewal of equipment for an amount of 1,047 thousands of euros and the modification in position 15.03A BVV gas pipeline (La Galera) for an amount of 283 thousands of euros.

The increases in "Prepayments and work in progress" are mainly due to the renewal of equipment and complementary measures in the Barcelona, Cartagena and Huelva plants for the optimal use of infrastructure in the amount of 13,666 thousands of euros, the construction of a motorcompressor unit for the Coreses and Almendralejo compressor stations in the amount of 8,551 thousands of euros, the Selva and Top Network twin-tube pipeline projects in the amount of 5,014 thousands of euros, the regasification facilities at the El Musel plant in the amount of 3,764 thousands of euros, the projects to reduce self-consumption at the Barcelona and Cartagena plants in the amount of 3,571 thousands of euros and the route at position 62 of the León Oviedo gas pipeline in the amount of 1,359 thousands of euros.

The most significant disposals relate to the "Technical facilities and machinery" heading, mainly for the twin-tube pipelines of the Selva and Top Network projects, amounting to 12,044 thousands of euros, and obsolete equipment at the Serrablo facilities amounting to 7,821 thousands of euros.

The most significant disposals under Prepayments and work in progress relate to the sale of pipelines.

In the 2022 financial year, Enagás Renovable changed control to joint control (Note 1.5), entailing the derecognition of the different fixed asset items.

In addition, the investment associated with the regasification plant project in the Port of Granadilla (GASCAN), following the presentation of the request for a Patrimonial Claim filed in July 2022, has been classified as a non-current financial asset, and the tangible assets have been derecognised in the amount of 15,297 thousands of euros (Note 2.2).

The main transfers in property, plant and equipment correspond to the Technical facilities and machinery heading, the most representative being the projects to reduce selfconsumption at the Barcelona and Cartagena regasification plants, and in the Serrablo, Gaviota and Yela underground storage facilities in the amount of 14,560 thousands of euros, the Selva and Top Network projects for twin-tube pipelines in the amount of 10,403 thousands of euros and the renewal of equipment and complementary actions at the Barcelona, Cartagena and Huelva plants, in the amount of 5,568 thousands of euros.

In addition, during 2022, the effect of the signing of new addenda to the fibre optic contract (Lyntia), which temporarily reduce the scope of the contract, has been recorded, and its fees have been updated to the CPI. This resulted in a net reduction of the right-of-use asset of 40,758 thousands of euros. In addition, the lease contract for the Titán offices has been renewed and several sea-land occupancy fees have been revised, resulting in an increase in the right of use asset of 4,172 thousands of euros and 2,732 thousands of euros respectively.

There are no mortgages or encumbrances of any type on assets recorded as property, plant, and equipment.

The Group's policy is to provide sufficient insurance coverage for its assets so as to avoid any significant losses. In addition,

the Group has contracted the corresponding insurance policies to cover third party civil liabilities.

Fully amortised PP&E assets recognised by the Enagás Group and still in use at 2022 and 2021 year-end are broken down as follows:

a) Capital Grants

Accumulated capital grants received at year-end which correspond to investments in gas infrastructure are broken down as follows:

	Grants	Released to	Balance at
	received	income	year-end
Regasification plants	80,987	(78,316)	2,671
Gas transmission infrastructure	483,079	(344,188)	138,891
Underground storage facilities	37,726	(37,610)	116
2022	601,792	(460,114)	141,678
Regasification plants	84,511	(80,555)	3,956
Gas transmission infrastructure	500,215	(352,873)	147,342
Underground storage facilities	17,508	(17,508)	—
Other items of property, plant and equipment	3,542	—	3,542
2021	605,776	(450,936)	154,840

The breakdown at year-end of said capital grants by public body which grants them is as follows:

	Grants	Released to	Balance at
	received	income	year-end
Structural funds of
the European Union	436,038	(319,726)	116,312
Official bodies of the
Spanish
Autonomous
Regions	51,905	(36,388)	15,517
Spanish Government	113,849	(104,000)	9,849
2022	601,792	(460,114)	141,678
Structural funds of
the European Union	440,022	(312,547)	127,475
Official bodies of the
Spanish
Autonomous
Regions	51,906	(35,320)	16,586
Spanish Government	113,848	(103,069)	10,779
2021	605,776	(450,936)	154,840

The breakdown by timing criteria of the balance pending application at December 31, 2022 is as follows:

	years
	<1	2 to 5	>5
Government grants	1,058	3,866	4,925
Autonomous Regions
grants	943	3,686	10,888
FEDER grants	6,895	27,112	82,305
Total grants	8,896	34,664	98,118

b) Supplementary information on IFRS 16

The activity during the 2022 and 2021 financial years in rights of use by category included under "Property, plant and equipment" was as follows:

	Balance at 12.31.2021	Additions (1)	Disposals (1)	Amortisation	Write-offs	Balance at 12.31.2022
Land and natural
assets	161,241	2,732	(667)	(8,580)	601	155,327
Buildings	12,466	5,442	(1,270)	(3,815)	—	12,823
Technical facilities	239,639	12,949	(53,707)	(9,598)	—	189,283
Machinery	101	293	(119)	(123)	336	488
Furniture	98	161	(26)	(40)	83	276
Transport
equipment	20,483	1,656	(609)	(6,823)	631	15,338
Total	434,028	23,233	(56,398)	(28,979)	1,651	373,535

(1) The main reason behind additions and disposals during 2022 is the effect of the signing of new addenda to the fibre optic contract (Lyntia), which temporarily reduce the scope of the contract, has been recorded, and its fees have been updated to the CPI. This resulted in a net reduction of the right-of-use asset of 40,758 thousands of euros. In addition, the lease contract for the Titán offices has been renewed and several sea-land occupancy fees have been revised, resulting in an increase in the right of use asset of 4,172 thousands of euros and 2,732 thousands of euros respectively.

	Balance at					Balance at
	12.31.2020	Additions	Disposals	Amortisation	Write-offs	12.31.2021
Land and natural
assets	150,595	25,376	(6,545)	(8,190)	5	161,241
Buildings	16,001	30	—	(3,565)	—	12,466
Technical facilities	119,792	138,669	(7,682)	(11,140)	—	239,639
Machinery	275	22	(35)	(196)	35	101
Furniture	60	63	(81)	(25)	81	98
Transport
equipment	19,627	13,422	(9,233)	(6,086)	2,753	20,483
Total	306,350	177,582	(23,576)	(29,202)	2,874	434,028

Likewise, the maturity of financial liabilities for IFRS 16 leases is as follows:

Maturity	12.31.2022	12.31.2021
Up to 3 months	9,222	9,107
Between 3 and 12 months	28,261	27,683
Between 12 months and 5 years	121,901	122,775
More than 5 years	354,375	366,685
Total without deduction	513,759	526,250
Updating effect	(113,856)	(66,700)
Total Debt IFRS 16 Leases (Note
3.4b)	399,903	459,550

Regasification plant - Port of El Musel (Gijón)

Regarding the situation of the regasification plant in the Port of El Musel (Gijón), on July 1, 2022, the decision of June 28, 2022 of the Directorate General of Energy Policy and Mines was published, granting Enagás Transporte, SAU, the administrative authorisation and approval of the project for the execution of the facilities for the reception, storage and regasification of liquefied natural gas in the Port of El Musel, Gijón (Asturias).

The Group continues to make progress in the process of obtaining the commissioning and the specification of the corresponding remuneration model, in order for the infrastructure to enter into operation in the gas system in accordance with the regulatory framework established in Royal Decree 335/2018. In this regard, on February 3rd, 2023 a resolution has been received from CNMC in which a singular and temporary economic regime has been stablished for this infrastructure (Note 4.9).

At December 31, 2022 the carrying amount of said investment totalled 382,896 thousands of euros (378,981 thousands of euros at 2021).

Likewise, in accordance with Royal Decree-Law 13/2012, said regasification plant received both financial remuneration as well as remuneration for operating and maintenance costs in connection with the actions carried out by the Group to maintain the plant ready for service. Both remunerations have been recognised annually by the successive Ministerial Orders of the Directorate General for Energy Policy and Mines on remuneration and tolls until 2020. In addition, Article 19 of Circular 9/2019 of December 12 of the National Commission on Markets and Competition, which establishes the methodology for determining the remuneration of natural gas transmission facilities and liquefied natural gas plants, continues to explicitly contemplate the remuneration methodology applicable to the

2.5 Intangible assets

ACCOUNTING POLICIES

Goodwill and business combinations

• The acquisition of control of a subsidiary by the parent constitutes a business combination, which is recognised using the acquisition method.
• Goodwill or negative goodwill arising on the combination is calculated as the difference between the fair value of the assets acquired and liabilities assumed which meet the relevant recognition criteria and the cost of the business combination, all measured at the acquisition date.
• Goodwill that arises upon acquisition of companies whose functional currency is not the euro is recognised in the functional currency of the acquired company, translating to euros at the exchange rate prevailing at the balance sheet date.
• Goodwill is not amortised and is subsequently measured at cost less any impairment losses. Goodwill impairment losses are not reversed in subsequent periods.
• Other intangible assets
• The cost model is applied, that is, the corresponding assets are measured at acquisition or production cost less the corresponding accumulated amortisation and any impairment losses.
• Development costs are capitalised by amortising on a straight-line basis over the corresponding useful life, provided they are specifically itemised by project, their amounts can be clearly established, and technical success and economic and commercial feasibility of the project are reasonably assured.

El Musel plant for the 2021-2026 regulatory period. Thus, the recognition of this remuneration for the El Musel plant has been explicitly included by the CNMC in its Resolutions of February 11, 2021 and May 20, 2021, and May 19, 2022, establishing the remuneration of the companies that carry out the regulated activities of liquefied natural gas plants, transmission and distribution for the "2021 gas year", "2022 gas year" and "2023 gas year", respectively.

Thus, the Directors of the Group, based on the legal opinions of internal advisors, do not consider it necessary to recognise any valuation adjustments.

The Group recognises all research expenses in the Consolidated Income Statement, including those development costs for which technical and commercial viability cannot be established. The amount recognised in the accompanying Consolidated Income Statement in connection with research expenses totals 549 thousands of euros in 2022 (585 thousands of euros in 2021).

• Concessions can only be included under assets when acquired for consideration separately by the Company and corresponding to concessions that can be transferred, or in the amount of expenses incurred to acquire them directly from the corresponding State or Public Authority. Should circumstances involving non-compliance with stipulated conditions arise which lead to the loss of rights related to a concession, the corresponding carrying amount for the concession will be written down in order to cancel the net value. These concessions are amortised on the basis of their useful lives.
• Acquisition and development costs incurred with respect to basic IT systems used for management are recognised with a charge to "Intangible assets" in the Consolidated Balance Sheet. Maintenance costs of IT systems are recognised in the Consolidated Income Statement for the year in which they are incurred. They are measured at the amount disbursed for ownership or right-of-use of the IT programs, as well as their production cost if they are developed by the Group.

SIGNIFICANT ESTIMATES AND JUDGEMENTS

Amortisation of intangible assets is carried out on a straight-line basis in accordance with the following useful lives:

	Annual rate	Useful life (years)
IT applications	10%-25%	10-4
Development costs	5%-50%	20 – 2
Port concessions	1.28%-7.6%	78 – 13

	Opening	Additions or	Increases or	Decreases,	Balance at
2022	balance	allocations (2)	decreases due to	disposals or	year-end
Goodwill (1)	25,812	—	transfers —	reductions (3) (8,291)	17,521
Other intangible assets
Development	12,818	500	—	(4,161)	9,157
Concessions	5,871	—	—	—	5,871
IT applications	276,461	21,717	—	—	298,178
Other intangible assets	9,815	—	—	(1,562)	8,253
Total cost	330,777	22,217	—	(14,014)	338,980
Other intangible assets
Development	(6,404)	(502)	—		(6,906)
Concessions	(4,159)	(48)	—	—	(4,207)
IT applications	(222,134)	(14,728)	—	—	(236,862)
Other intangible assets	(7,836)	—	—	—	(7,836)
Total amortisation	(240,533)	(15,278)	—	—	(255,811)
Goodwill (1)	(2,609)	—	—	2,609	—
Other intangible assets	(1,011)	—	—	1,011	—
Total impairment	(3,620)	—	—	3,620	—
Total Goodwill	23,203	—	—	(5,682)	17,521
Total Other intangible assets	63,421	6,939	—	(4,712)	65,648
Net carrying amount of intangible assets	86,624	6,939	—	(10,394)	83,169

(1) Corresponds to the goodwill arising on the acquisition of ETN.

(2) Among the additions in the year, the most important are the computer applications for the implementation of Sap4Hana (2,121 thousands of euros), the implementation of the Scada Monarch system (2,098 thousands of euros), the implementation of the Purchase-to-pay tool (342 thousands of euros), the Platiom- ISA tanks application (775 thousands of euros), the adaptation to the regulatory developments in billing (480 thousands of euros) and the improvement in the control of the measurement process (399 thousands of euros).

(3) Disposals in the year relate mainly to goodwill of GASCAN (5,682 thousands of euros). The investment associated with the regasification plant project in the Port of Granadilla (GASCAN), following the presentation of the request for a claim for asset liability filed in July 2022, has been classified as a non-current financial asset, and goodwill amounting to 5,682 thousands of euros have been derecognised (Note 2.2).

Opening	Additions or	Increases or	Decreases,	Balance at
balance 25,812	provisions —	decreases due to —	disposals or	year25,812 -end
		transfers	reductions
8,686	967	3,165	-	12,818
5,871	—	—	-	5,871
254,362	11,462	10,637		276,461
14,050	10,647	(13,802)	(1,080)	9,815
308,781	23,076	-	(1,080)	330,777
(5,715)	(689)	-	-	(6,404)
(4,111)	(48)	-	-	(4,159)
(210,389)	(11,745)	-	-	(222,134)
(7,836)	—	-	-	(7,836)
(228,051)	(12,482)	-	-	(240,533)
(2,609)	—		—	(2,609)
(3,530)	(1,011)		3,530	(1,011)
(6,139)	(1,011)		3,530	(3,620)
23,203	—	-	—	23,203
51,388	9,583	-	2,450	63,421
74,591	9,583	-	(2,450)	86,624

Fully amortised elements

Fully amortised intangible assets recognised by the Enagás Group and still in use at 2022 and 2021 year-end are detailed as follows:

2.6 Non-current assets held for sale

ACCOUNTING POLICIES

• An entity classifies a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered through a sale transaction rather than through continuing use.
• For the above classification, the asset (or disposal group) must be available, in its present condition, for immediate sale, subject only to current terms customary for the sale of such assets (or disposal groups), and its sale must be highly probable.
• An entity shall measure non-current assets (or disposal groups) classified as held for sale at the lower of their carrying amount and fair value less costs to sell.

Enagás Internacional, S.L.U. and Elecnor, S.A. reached an agreement dated December 17, 2021 to jointly and equally sell to MIP V International AIV, L.P. (a wholly-owned subsidiary, indirectly, of the Macquarie Infrastructure Partners V, L.P. fund managed by Macquarie Asset Management ("MAM")) the total shareholding they hold in the Mexican nationality companies Gasoducto de Morelos, S.A.P.I. de C.V. and Morelos O&M, S.A.P.I. de C.V. for a total of 173.8 million dollars (approximately 163 million euros at current exchange rates). Both holdings are included in the "Other activities" segment of the Enagás Group.

The transaction is subject to compliance with the conditions precedent for this type of operation. Enagás estimates that the closure will occur during the first half of the 2023 financial year, due to the extension in the fulfilment of these conditions precedent.

As a result of the foregoing, the Group classified the investments accounted for using the equity method in these companies and the loan granted to Gasoducto de Morelos, S.A.P.I. de C.V. which form part of the transaction, for a total amount of 30,452 thousands of euros (28,547 thousands of euros at 2021 year-end), corresponding to their carrying amount, under "Non-Current Assets Held for Sale". For the purpose of determining the fair value, the information relating to the bids received has been used. These bids exceed the carrying amount. Therefore, no valuation adjustments have been recorded as a result of the above.

2.7 Impairment of non-financial assets

ACCOUNTING POLICIES

• With respect to goodwill, at the closing of each year, or more frequently if certain circumstances or changes arise which indicate that the net value of said goodwill may not be entirely recoverable, and when there are indications of impairment losses on the remaining noncurrent assets, the Company analyses the corresponding recoverable amounts to determine the possibility of impairment.
• The potential impairment loss is determined by assessing the recoverable amount of the cash-generating unit (or group of cash-generating units) to which the goodwill relates at the time it arises.
• The period used by the Enagás Group to determine the projected cash flows of the cash-generating units corresponds to the period in which the asset accrues revenue associated with the investment (Appendix III). At the closing of this period, the Enagás Group considers residual values based on the cash flows of the last period with a growth rate equal to zero.

SIGNIFICANT ESTIMATES AND JUDGEMENTS

Determination of impairment losses on non-current assets other than financial assets is based on fulfilment of a series of hypotheses which are described below in this note and are revised annually. The Group identifies its operating segments based on internal reports relating to the companies comprising the Group which are regularly reviewed, discussed, and evaluated in the decision-making process, as indicated in Note 4.7.

To the extent that assets grouped within a segment are at the lowest level at which independent cash flows can be identified, the segment is identified as a cash generating unit (CGU).

The CGUs identified by the Enagás Group in 2022 are shown below:

• Infrastructure activity in Spain (includes transmission, regasification, and storage).
• Technical Management of the System.

In addition, as explained in Note 1.6, for investments accounted for by the equity method, each associate or joint venture is considered as a CGU.

The goodwill presented in the balance sheet is allocated to the Infrastructure Activity CGU in Spain.

To estimate value in use, the Enagás Group prepares forecasts regarding future cash flows after taxes based on the most recent budget approved by the Directors. The best estimates available for income, costs, investment and dividends (in the case of investments accounted for using the equity method) relating to CGUs are used for said forecasts, making use of past experience, sector forecasts, and future expectations, in accordance with the prevailing regulatory framework and corresponding contracts.

the facilities elapses.

With regard to infrastructure activities, once the current regulatory period has expired (2026), from the time at which the regulatory useful life of the facilities comes to an end, and in those cases where the asset remains in operation, the fixed remuneration for O&M and remuneration for the extension of useful life, calculated as a financial remuneration based on the replacement value of the assets, which is shared 50/50 with the Spanish Gas System, with no amount accruing as remuneration for investment, depreciation or financial remuneration. This criterion is in line with that used in the economic and financial projections included in the update of the Group's Strategic Plan. In addition, the remuneration for continuity of supply ("RCS") has been ruled out as fixed remuneration, as from the next regulatory period this concept of income will not continue, in line with what the Ministry has already indicated for the activity of Underground Storage in the Royal Decree on Underground Storage and Charges. Despite the fact that, to date, the CNMC has not issued a statement regarding the RCS after 2027 for Regasification and Natural Gas Transmission activities, the Directors understand that, based on a prudent criterion, the evolution of Regasification and Natural Gas Transmission activities will be aligned with that of Underground Storage.

Thus, when determining residual value, the following is taken into consideration:

• The projection of remuneration for operating and maintenance costs for the last financial year as well as the forecast remuneration for extension of useful life, applying the aforementioned criterion (which was financially applicable during the period 2002-2008, calculated on the replacement value of the assets).
• Financial remuneration, as a component to be received in the long term, associated with: i) the existence of a large number of assets that are still in useful life; and ii) additionally, the existence of an incremental investment plan to be developed as part of the update of the strategic plan..

Financial remuneration or remuneration related to amortisation was not taken into account as said remuneration will end when the regulatory useful life of The last period considered for projections is the one corresponding to the year in which the regulatory useful life ends, based on the age of the facilities at the time.

With respect to the activities corresponding to Technical Management of the System, residual values were calculated based on the cash flows of the last financial year, using a zero growth rate and no normalisation adjustments. This is due to the fact that, as indicated in Appendix III, revenue corresponding to this activity is meant to settle the obligations of Enagás GTS, S.A.U. as Technical Manager of the System. This is calculated according to the applicable remuneration methodology for the 2021-2023 and 2024-2026 regulatory periods (see Note 2.1) For the last period, the same criteria were applied as those used for infrastructure activity, under the understanding that while the gas infrastructure is operational and there is demand for gas, technical management of the gas system will continue.

As mentioned in Note 2.1 and developed in Appendix III, on January 1, 2021, the new regulatory and remuneration framework came into force with the publication of Circulars 9/2019 of December 12, 2019 and 8/2020 of December 23, 2020 and Royal Decree 1184/2020 of December 29, 2020.

The modifications in the remuneration model incorporated in these have been taken into account in the calculation of the projected flows from January 1, 2021.

The Directors consider that their projections are reliable and that past experience, taken together with the nature of the business, make it possible to predict cash flows for the periods under consideration.

The most representative hypotheses used in the projections, based on business forecasts and past experience, are the following:

• Regulated remuneration was estimated in accordance with the remuneration approved by CNMC Circulars and RD 1184/2020 for the years in which it is available, while for subsequent years the same updating mechanisms established by law have been used and a better estimate has been made for the costs paid based on audited costs.
• Investment: the best available information on investment plans for assets and maintenance of infrastructures and systems has been used, based on the one hand on the history of investment in maintenance and systems and, on the other, in new projects that are highly likely to be executed in accordance with the work in progress being developed with the Ministry and the CNMC.
• Operating and maintenance costs were estimated considering the prevailing operation and maintenance contracts, as well as remaining estimated costs based on sector knowledge and past experience. The projections made were consistent with the growth expected as a result of the investment plan.
• Other revenue and costs were projected based on sector knowledge, past experience, consistent with the growth expected as a result of the investment plan.
• Future dividends have been projected based on the company's knowledge, past experience and activity in free cash flows.
• In addition, lease liabilities have not been taken into account in the value in use of the CGU or in its carrying amount.
• In order to calculate present value, projected future cash flows are discounted at an after-tax rate which reflects the weighted average cost of capital (WACC) corresponding to the business and the geographical area in which the business is carried out. For its calculation, the time value of money is taken into consideration together with the riskfree rate and risk premiums generally used by analysts of the business and geographic area in question. The risk-free rate corresponds to the sovereign bonds issued by each country in the corresponding market, with sufficient depth and solvency. However, associated country risk is also taken into consideration for each geographical area. The risk premium of the asset corresponds to the risks specific to the asset, calculated taking into consideration the estimated betas in accordance with the selection of comparable businesses dedicating themselves to a similar main activity.
• In addition, lease liabilities have not been taken into account in the value in use of the CGU or in its carrying amount. The after-tax discount rate for regulated activities in Spain will be between 3.8% and 5.8% in 2022 (between 2.87% and 4.85% in 2021), while the pre-tax rate will be between 4.6% and 6.5% in 2022 (between 4.1% and 6% in 2021).
• Considering that all the CGUs have been operating normally during 2022 (Note 1.11), the sensitivity analysis of the discount rate has been performed using a range of +0.5% and -0.5%. No significant associated risks have arisen from this analysis. Thus, the Group management considers that, within the specified ranges, there would be no changes in the impairment calculation.

2.8 Other non-current liabilities

The heading "Other current liabilities" includes mainly liabilities under contracts with customers, in accordance with IFRS 15, the breakdown and changes of which are shown below:

Connections to		Total
basic network
39,075	796	39,871
1,058	10	1,068
(676)	—	(676)
(1,057)	—	(1,057)
(1,010)	—	(1,010)
31	—	31
37,421	806	38,227
761	203	964
(999)	—	(999)
(675)	(796)	(1,471)
(1,023)	—	(1,023)
35,485	213	35,698
35,485	—	35,485
—	213	213
		Other

At December 31, 2022, the heading "Customer contract liabilities" includes performance obligations pending execution with an estimated term of more than one year, amounting to

1,743 thousands of euros (1,059 thousands of euros at December 31, 2021). At December 31, 2022, the Enagás Group had no refund or

reimbursement rights associated with contracts with customers.

2.9 Provisions and contingent liabilities

SIGNIFICANT ESTIMATES AND JUDGEMENTS

• The Consolidated Annual Accounts include all significant provisions when the Group considers that it will more likely than not have to settle the related obligations. Contingent liabilities are not recognised in the Consolidated Annual Accounts, but rather are disclosed, unless the possibility of an outflow of resources embodying economic benefits is considered remote.
• Provisions, which are quantified taking into consideration the best available evidence on implications of obligating events and that are re-estimated at each balance sheet date, are used to cover the specific obligations for which they were originally recognised and are partially or fully reversed when said obligations decrease or cease to exist.
• The compensation to be received from a third party when an obligation is settled is recognised as an asset, provided it is certain that reimbursement will be received, unless there is a legal relationship whereby a portion of risk has been externalised as a result of which the Group is not liable, in which case, reimbursement will be taken into consideration in estimating the amount of any provisions.

The policy followed with respect to the recognition of provisions for risks and expenses is to recognise the estimated amount required to settle probable or certain liabilities arising from litigation underway, pending indemnities or liabilities, sureties and similar guarantees. They are recognised upon emergence of the liability or obligation determining the indemnity or payment.

• At year-end 2022 and 2021, several legal proceedings were underway against business groups in connection with matters relating to the normal course of their activities. The Group's legal advisors and Directors consider that the final outcome of these proceedings and claims will not have a significant effect on its future Consolidated Annual Accounts.
• Decommissioning provisions are subject to periodic review, in order to monitor possible changes in any of the assumptions used, assuming in that case the corresponding change in book value, applied prospectively.

a) Provisions

The movements during the period under the heading "Non-current provisions" and "Current provisions" were as follows:

		Additions
	Opening	and			Amounts	Balance at
Current and non-current provisions	balance	provisions	Updates	Reclassifications	used	year-end
Personnel remuneration	1,029	2,231	6	15	(944)	2,337
Other long-term provisions	401	199	—	—	(172)	428
Dismantling	290,926	—	2,202	—	—	293,128
Total non-current provisions	292,356	2,430	2,208	15	(1,116)	295,893
Other short-term provisions	717	6,669	—	4,178	—	11,564
Total current provisions	717	6,669	—	4,178	—	11,564
Total current and non-current provisions	293,073	9,099	2,208	4,193	(1,116)	307,457

Decommissioning provisions correspond to the underground storage facilities of Gaviota, Yela, and Serrablo, as well as the regasification plants of Barcelona, Cartagena, Huelva, and El Musel (Gijón) in accordance with the prevailing regulatory framework (Note 2.4 and Appendix III).

Decommissioning provisions are subject to periodic review, in order to monitor possible changes in any of the assumptions used, assuming in that case the corresponding change in book value, applied prospectively.

As part of this periodic review, at December 31, 2021, the value of decommissioning was re-estimated, resulting in an increase in the amount of 39,615 thousands of euros.

Additionally, this provision has been updated in the periods following its incorporation, applying a discount rate before taxes that reflects the current assessments that the market is making of the temporal value of money, and those specific risks related to the actual obligation subject provision. The discount rate used during 2022 ranges from 0.4% to 1% depending on the remaining time period in which the dismantling work is expected to be carried out.

As a result of the effect of this financial restatement, at December 31, 2022 an increase of 2,202 thousands of euros was registered in the dismantling provision.

Lastly, the Group has proceeded to perform the corresponding sensitivity analyses, showing that a change in the discount rate f 5 basis points and a variation in estimated dismantling costs of 2.5%, would result in a change in the value of this provision in the range of (3.30%)-3.40%.

"Personnel remuneration" includes the cash portion of the Long-Term Incentive Plan ("ILP") for the executive directors and senior management (Note 4.4) as well as the bonus payable every three years for contribution to results aimed at the remaining personnel of the Group, payable on 2025.

The Directors of the Company consider that the provisions recognised in the accompanying Consolidated Balance Sheet for litigation and arbitration risk as well as other risks described in this note are adequate and, in this respect, they do not expect any additional liabilities to arise other than those already recorded. Given the nature of the risks covered by these provisions, it is not possible to determine a reasonably reliable schedule of payment dates, if any.

b) Contingent liabilities

At December 31, 2022, there are no events in the Enagás Group that could be considered as contingent liabilities further to those indicated in Note 3.3.a in relation to the GSP project in Peru, as well as in Note 4.2.

3. Capital structure, financing and financial result

RELEVANT ASPECTS

Financial leverage

• Financial leverage at December 31, 2022 amounted to 53.0% (57.5% in 2021) (Note 3.7).
• On September 9, 2022, the credit rating agency Fitch Ratings maintained Enagás' outlook at stable, and placed Enagás' rating at BBB. On January 26, 2022, the credit rating agency Standard & Poor's placed Enagás' credit rating at BBB, with a stable outlook (Note 3.7).

Equity

• At December 31, 2022, equity has increased by 4% compared to the previous year, to a total of 3,218 million euros.
• The share price of the parent company, Enagás, S.A. recognised at December 31, 2022 amounted to 15.525 euros.
• No individual or legal entity can invest directly or indirectly in a proportion in excess of 5% of the share capital of Enagás, S.A., nor exercise political rights in this company above 3% (1% for those subjects who, directly or indirectly, perform activities in the gas sector). These restrictions are not applicable to direct or indirect holdings corresponding to the public business sector (Note 3.1.a).

Net financial debt

• Net financial debt is the main indicator used by Management to measure the Group's debt level. At December 31, 2022 net financial debt amounted to 3,469 million euros (4,277 million euros in 2021) (Note 3.4.a).
• The average annual interest rate during 2022 for the Group's gross financial debt amounted to 1.8% (1.7% in 2021). (Note 3.4.a).
• The percentage of fixed rate net financial debt at December 31, 2022 and December 31, 2021 amounted to more than 80%, with the average maturity period of the debt at December 31, 2022 being 4.4 years (4.5 years at December 31, 2021) (Note 3.4.a).

Available funds

The Group has available funds in the amount of 3,794 million euros at December 31, 2022 (3,300 million euros in 2021) (Note 3.8.b).

Financial result

• Financial expenses and similar decreased from 103 million euros in 2021 to 100 million euros in 2022 (Note 3.5).
• Finance income and similar increased from 20 million euros in 2021 to 38 million euros in 2022. (Note 3.5).

Derivative financial instruments

At December 31, 2022, the net fair value of the Group's derivatives, including assets and liabilities derivatives, was 21 million euros of liabilities (88 million euros of liabilities at December 31, 2021) (Note 3.6). During 2022, the Group maintains cash-flow hedges and net investment hedges.

Gasoducto Sur Peruano, S.A. ("GSP")

• In relation to the situation of the investment in GSP, as a result of the termination of the concession contract on January 24, 2017, the dispute between the Peruvian State and Enagás regarding the application of the investment recovery mechanism established in the GSP Concession contract continues. In this regard, an international arbitration was initiated in 2018 under the Reciprocal Investment Promotion and Protection Agreement (hereinafter, APPRI) Spain-Peru, as detailed in Note 3.3.a submitted to the International Centre for Settlement of Investment Disputes (hereinafter ICSID). This proceeding continues to take its regular course, and once hearings have been held and briefs filed in the second half of 2022, the award is expected. The anticipated date of June 30, 2023 for an arbitration award that is fair to Enagás' interests will be maintained.
• In order to enforce the application of TGP's Legal Stability Agreements against the prohibitions on the transfer abroad of the dividends collected on said investment, after initiating direct treatment on February 24, 2021 with the Peruvian State, on December 23, 2021 the request for arbitration proceedings was submitted to the ICSID under the Spain-Peru APPRI (Reciprocal Promotion and Protection Agreement) (Note 3.3.a). This procedure continues its regular course.
• At December 31, 2022, the total amount to be recovered by GSP amounted to 473,999 thousands of euros (433,604 thousands of euros at December 31, 2021) relating to both the recovery of the financial investment in this company and the credit rights associated with the recovery of the guarantees executed against the Enagás Group as a result

of the termination of the concession contract in GSP (Note

3.3.a).

3.1 Equity

a) Share capital

At both 2022 and 2021 year-end the share capital of Enagás S.A. amounted to 392,985 thousands of euros, represented by 261,990,074 shares with a face value of 1.5 euros each, fully subscribed, and paid in.

All shares of the parent company Enagás, S.A. are listed on the four official Spanish Stock Exchanges and are traded on the continuous market. At the closing of December 31, 2022 the quoted share price was 15.525 euros, having reached a maximum of 22.11 euros per share on May 25, 2022.

It is worth noting that, subsequent to publication of Additional Provision 31 of Hydrocarbon Sector Law 34/1998, in force since enactment of Law 12/2011, of May 27,"no natural or legal person can participate directly or indirectly in the shareholder structure of Enagás, S.A with a stake exceeding 5% of share capital, nor exercise political rights in said parent company exceeding 3%. These shares cannot be syndicated under any circumstances." Furthermore, "any party operating within the gas sector, including natural persons or legal entities that directly or indirectly own equity holdings in the former of more than 5%, may not exercise voting rights over 1%. Said limitations shall not be applicable to direct or indirect interest held by the public corporate sector."

At December 31, 2022 and 2021 the most significant shareholdings in the share capital of Enagás, S.A. were as follows (from the information published by the National Securities Market Commission (CNMV in Spanish) (1) at December 31, 2022):

	Investment in share
		capital (%)
Company	12.31.2022	12.31.2021
Sociedad Estatal de Participaciones
Industriales	5.000	5.000
Partler 2006 S.L.	5.000	5.000
Bank of America Corporation	3.614	3.614
BlackRock Inc.	4.988	3.383
State Street Corporation	3.008	3.008
Mubadala Investment Company
PJSC	3.103	3.103

(1) The information obtained from the CNMV was based on the last notification that each entity thus obliged must send to said body, in connection with the stipulations of Royal Decree 1362/2007, of October 19 and Circular 2/2007, of December 19.

b) Issue premium

At December 31, 2021 and 2022 the Parent Company's issue premium amounted to 465,116 thousands of euros.

The Consolidated Text of the Corporate Enterprises Act expressly permits the use of the issue premium account balance to increase capital and does not establish any specific restrictions as to its use.

c) Treasury shares

At December 31, 2022, Enagás, S.A. has finalised the process for delivering and acquiring treasury shares, which amounted to 821,375 shares, representing 0.31% of the total shares issued by Enagás, S.A. at December 31, 2022, for a total of 9,676 thousands of euros (including associated expenses of 10 thousands of euros). This acquisition took place within the framework of the "Temporary Treasury Share Buy-Back Scheme", whose exclusive aim was to meet the obligations of delivering shares to the Executive Director and members of the Enagás Group management team under the current remuneration scheme according to the terms and conditions of the 2022-2024 Long-Term Incentive Plan (ILP) and the Remuneration Policy approved at the General Shareholders' Meeting held on March 31, 2022. The shares were purchased in compliance with the conditions set out in Article 5 of Regulation EC/2273/2003 and subject to the terms authorised at the General Shareholders' Meeting held on March 31, 2022. Management of the Temporary Treasury Share Buy-Back Scheme was entrusted to Banco Bilbao Vizcaya Argentaria (BBVA), which carried out the transaction on behalf of Enagás, S.A. independently and without exercising influence on the process (Note 4.4).

During the period from January 1, 2022 to December 31, 2022, the following movements in treasury shares have taken place:

No. of shares	No. of shares	No. of shares	No. of shares
as at January	acquired new	implemented	as at
1, 2022	target	for the target	December 31,
501,946	465,000	(145,571)	2022 821,375

d) Reserves

The Corporate Enterprises Act stipulates that 10% of profit for the year must be transferred to the legal reserve until it represents at least 20% of share capital. At 2022 and 2021 yearend, the legal reserve was fully allocated and totalled 78,597 thousands of euros.

The legal reserve can be used to increase capital by the amount exceeding 10% of the new capital after the increase. Except for this purpose, until the legal reserve exceeds the limit of 20% of capital, it can only be used to compensate losses provided there are no other reserves available.

e) Income and expenses recognised directly in equity

	Opening	Change in	Recognised in	Balance at
	balance	value	profit and loss	year-end
2022
Cash flow hedges	(11,531)	(414)	3,627	(8,318)
Tax recognised in equity	2,890	104	(907)	2,087
Translation differences	(110,119)	(50,913)	30,789	(130,243)
Fully-consolidated companies	(118,760)	(51,223)	33,509	(136,474)
Cash flow hedges	(11,667)	81,172	3,715	73,220
Tax recognised in equity	2,157	(11,682)	(825)	(10,350)
Translation differences	54,745	148,901	—	203,646
Companies accounted for using the equity method	45,235	218,391	2,890	266,516
Translation differences	—	30,397	(37,421)	(7,024)
Non-current Assets Held for Sale	—	30,397	(37,421)	(7,024)
Assets at fair value with changes in Other Comprehensive	534	2,252	—	2,786
Total Income	(72,991)	199,817	(1,022)	125,804
2021
Cash flow hedges	(17,183)	(6,924)	12,576	(11,531)
Tax recognised in equity	4,303	1,731	(3,144)	2,890
Translation differences	(48,214)	(61,905)	—	(110,119)
Fully-consolidated companies	(61,094)	(67,098)	9,432	(118,760)
Cash flow hedges	(38,627)	23,741	3,219	(11,667)
Tax recognised in equity	6,853	(3,750)	(946)	2,157
Translation differences	(109,852)	164,597	—	54,745
Companies accounted for using the equity method	(141,626)	184,588	2,273	45,235
Assets at fair value with changes in Other Comprehensive	—	534	—	534

3.2 Result and variation in minority interests

ACCOUNTING POLICIES

• Minority interests are those that can be attributed to shareholders who have no control over the subsidiary.
• They are recognised under equity as a line item separate from the equity attributable to the parent.
• In business combinations, minority interests are measured at fair value or the proportional part of net assets acquired.
• The amount corresponding to minority interests relating to the change in equity of the subsidiary is attributed based on the percentage of interest held in the subsidiary.
• Changes in the percentage of ownership interest held by the parent in the subsidiary which do not represent a loss of control are recognised as equity transactions.
• The amount corresponding to minority interests is calculated for the whole Enagás Group based on the carrying amounts of the companies in which minority interests is held.

	Minority interests	Opening	Changes in the	Dividends	Other	Distribution of	Balance at
	holding	balance	consolidation	distributed	adjustments(1)	results	year-end
2022			scope
ETN, S.L.	10.0%	15,660	—	(568)	—	616	15,708
Remaining		560	(306)	(252)	287	24	313
companies Total 2022		16,220	(306)	(820)	287	640	16,021
2021
ETN, S.L.	10.0%	15,583	—	(746)	—	823	15,660
Remaining		1,376	(223)	(2,813)	2,230	(10)	560
companies Total 2021		16,959	(223)	(3,559)	2,230	813	16,220

(1) In 2022 and 2021, "Other adjustments" includes mainly the amounts recorded in Gas Infrastructure Reserves for dividends from Group companies received and not distributed.

The summarised financial information of these affiliates is shown below. This information is based on the amounts recognised before eliminations among Group companies:

	2022	2021
Condensed income statement	ETN, S.L.	ETN, S.L.
Ordinary revenue	21,461	24,507
Cost of sales	(7,656)	(7,647)
Administrative expenses	(4,123)	(4,191)
Financial expenses	(2,066)	(2,332)
Profit /(loss) before tax	7,616	10,337
Income tax expense	(1,456)	(2,109)
Profit /(loss) for the year from continuing operations	6,160	8,228
Total results	6,160	8,228
Attributable to minority interests	616	823
Dividends paid to minority interests	568	746

	12.31.2022	12.31.2021
Condensed balance sheet	ETN, S.L.	ETN, S.L.
Inventories, treasury, and current accounts (current)	14,980	20,178
PP&E and other assets (non-current)	219,625	226,420
Suppliers and payables (current)	14,039	12,570
Loans, credits, and deferred tax liabilities (non-current)	63,459	77,381
Total equity	157,108	156,647
Attributable to:
Shareholders of the Parent	141,400	140,987
Minority interests	15,708	15,660
	2022	2021
Cash flow statement	ETN, S.L.	ETN, S.L.
Operating income	26,679	13,121
Investment	(137)	(400)

Financing	(18,679)	(14,256)
Total net cash flows	7,863	(1,535)

3.3 Financial assets and liabilities

ACCOUNTING POLICIES

Financial assets

• Financial assets are recognised in the Consolidated Balance Sheet at the transaction date when the Group becomes party to the contractual terms of the instrument.
• Financial assets are classified under "Financial assets measured at amortised cost" except for the investments accounted for using the equity method (Note 1.6) and derivative financial instruments (Note 3.6) and financial assets measured at fair value through other comprehensive income.

Financial assets measured at amortised cost

• Items recognised under this heading are initially recognised at fair value of the consideration paid, plus transaction costs directly attributable to the acquisition. Subsequently, they are measured at amortised cost.
• Receivables which do not bear explicit interest are recognised at their face value whenever the effect of not discounting the related cash flows is not significant. Subsequent measurement in this instance is still carried out at face value.

Financial assets measured at fair value with

changes in other comprehensive income

Equity instruments are measured by default at fair value through profit or loss, but there is an option at initial recognition to present changes in fair value in profit/loss. This decision is irrevocable and is made for each asset individually.

SIGNIFICANT ESTIMATES AND

JUDGEMENTS In accordance with the requirements established under IFRS 9, the Group regularly calculates the effect of the expected loss on financial assets. This has had an effect on the Consolidated Income Statement for the current year of 152 thousands of euros

(44 thousands of euros at December 31, 2021), with the cumulative effect on the Consolidated Balance Sheet amounting to 657 thousands of euros at December 31, 2022 (505 thousands of euros at December 31, 2021).

Fair value measurement

• In accordance with IFRS 13, for purposes of financial disclosure, the measurement of fair value is classified as Level 1, 2, or 3, based on the degree that the inputs applied are observable and their importance in measuring fair value in its totality, as described below:
  • Level 1 Inputs are based on quoted prices (unadjusted) for instruments of an identical nature traded in active markets.
  • Level 2 Inputs are based on valuation models for which all significant inputs are observable in the market or can be corroborated by observable market data.
• Level 3 Inputs are not generally observable and generally reflect estimates regarding market movements for determining the price of the asset or liability.

Trade and other payables

Trade and other payables that do not accrue explicit interest are measured at their face value when the effect of financial discounting is not significant.

a) Financial assets

	Class
	Fair Value with
		changes in the income Fair value through
	Amortised cost		statement (*)		profit / loss		Total
Categories	12.31.2022	12.31.2021	12.31.2022	12.31.2021	12.31.2022	12.31.2021	12.31.2022	12.31.2021
Equity instruments	—	—	—	—	22,147	16,249	22,147	16,249
Loans	20,822	18,175	—	—	—	—	20,822	18,175
Trade and other receivables (Note	54,197	150,833	—	—	—	—	54,197	150,833
Other 2.2)	496,032	447,364	—	—	—	—	496,032	447,364
Total non-current financial assets	571,051	616,372	—	—	22,147	16,249	593,198	632,621
Loans	198	1,925	—	—	—	—	198	1,925
Derivatives (Note 3.6)	—	—	3,166	—	—		3,166	—
Other	25,816	11,541	—	—	—	—	25,816	11,541
Total current financial assets	26,014	13,466	3,166	—	—	—	29,180	13,466
Total financial assets	597,065	629,838	3,166	—	22,147	16,249	622,378	646,087

(*) In the specific case of those derivatives to which cash flow hedges or net investment are attributed, the accumulated amounts in equity are transferred to the Consolidated Income Statement in the periods when the covered items affect the Consolidated Income Statement.

The Directors estimate that the fair value of the financial assets at December 31, 2022 does not differ significantly with respect to their carrying amount.

Equity instruments

This heading includes the Enagás Group's investments in companies over which it does not have control, joint control or significant influence on the basis of the way in which the relevant decision-making is established.

At December 31, 2022, this mainly includes the Enagás Group's investments in 19% of the company Depositi Italiani GNL and the investments in the company Satlantis Microsats, S.L. (7.59%) and the funds Klima Energy Transition Fund, F.C.R. and Clean H2 Infra Fund. The change compared to 2021 is mainly due to the change in the fair value of these investments, as well as additional investments made by the Enagás Group during 2022.

Loans

This mainly includes loans granted to group companies consolidated using the equity method and therefore not eliminated in the consolidation process.

The detail of current and non-current loans to Group companies is detailed in Note 4.3.

Other

"Other non-current financial assets" include an amount of 6,505 thousands of euros (3,847 thousands of euros at December 31, 2021) corresponding to the investment made by the Group in Economic Interest Groupings (EIG) whose activity is the leasing of assets managed by another entity unrelated to the Group and which retains both the majority of profits as well as the risks related to the activities, with the Group only availing itself of the regulated tax incentives in Spanish legislation. The

Group attributes the carry-forward tax losses generated by these EIGs against shares and taking into account the debt registered with the Tax Authorities, recognising the corresponding financial income.

Dividends approved for distribution from affiliates, but not yet received at December 31, 2022, are also included under the current heading.

In addition, receivables from the termination of the GSP concession contract are included. At December 31, 2022, the total amount to be recovered by GSP amounted to 473,999 thousands of euros (433,604 thousands of euros at December 31, 2021) relating to both the recovery of the financial investment and the credit rights associated with the recovery of the guarantees executed against the Enagás Group as a result of the termination of the concession contract in GSP, the amount being updated and considering June 30, 2023 as the date of recognition of the award that allows such recovery.

Gasoducto Sur Peruano ("GSP")

In relation to the investment in Gasoducto Sur Peruano, S.A. (hereinafter "GSP") as indicated in the Consolidated Annual Accounts of the Enagás Group for 2016, on January 24, 2017 the Directorate General of Hydrocarbons of the Peruvian Government's Ministry of Energy and Mines (hereinafter the "State of Peru") sent an official letter to GSP stating "the termination of the concession agreement owing to causes attributable to the concession holder", in accordance with the terms of Clause 6.7 of the "Improvements to the Energy Security of the Country and the Development of the Gasoducto Sur Peruano" (hereinafter "the Project") concession agreement, because the financial close had not been evidenced within the period established in the agreement (January 23, 2017), and proceeded to the immediate enforcement of the totality of the guarantee for full compliance given by GSP (262.5 million dollars), to ensure fulfilment of the

obligations relating to the concession, which in the case of Enagás generated a payment of 65.6 million dollars. Also in January 2017, they paid GSP bank financing sureties to Enagás amounting to 162 million dollars, including both principal and interest pending payment. In December 2017, the process for delivering the Concession Assets held by GSP was substantially completed with the Peruvian State assuming control over them.

As a result of the termination of the concession contract, in accordance with the opinion of external and internal legal advisors, the Peruvian State had the obligation to apply Clause 20 of the Concession Contract, calculating the Net Carrying Amount (hereinafter NCA) of the Concession Assets, calling up to a maximum of three auctions to award the Concession, with the auction result being to pay GSP the NCA. With the amount that GSP would have received for the NCA of the Concession Assets, it would have proceeded to settle its obligations to third parties and, if appropriate, reimburse the capital contributions made by its shareholders.

As a result of inaction by the State of Peru in relation to the aforementioned procedure, on December 19, 2017, Enagás notified the Peruvian State about the existence of a dispute relating to the investment in GSP with a view to reaching an amicable agreement on the terms of Article 9.1 of the Agreement for the Reciprocal Promotion and Protection of APPRI in Spanish signed by the Republic of Peru and the Kingdom of Spain. This notification represented the beginning of the six-month period for direct contact prior to initiating international arbitration in which the APPRI acts as the mechanism for recovering the investment in GSP. Once the required six months of direct contact between Enagás and the Peruvian State had elapsed without it being possible to reach an amicable settlement of this dispute, on July 2, 2018, Enagás filed an application for the initiation of arbitration against the Peruvian State regarding its investment in GSP with the ICSID.

Through this arbitration procedure, it is expected that the Peruvian State will reimburse Enagás for its investment in GSP, this being the mechanism by which the financial assets recorded in the balance sheet would be recovered. Thus, it is expected that the Arbitration Court hearing the arbitration procedure in the ICSID will uphold the arguments of Enagás, issuing an award recognising that the Peruvian State has not protected Enagás' investment under the APPRI and, therefore, it must compensate it by paying it the value of that investment.

With respect to this ICSID arbitration procedure, the Arbitration Court was constituted on July 18, 2019, and Legal Resolution No. 1 was issued on September 24, 2019, establishing the procedural rules that govern the arbitration procedure until the award is handed down.

In accordance with this Resolution, Enagás filed its claim on January 20, 2020, and the Peruvian State replied on July 17, 2020. Subsequently, the documentary exhibition phase took place in which the parties requested each other to provide documents that each of them considered relevant. This was followed by the presentation of the reply by Enagás on May 31, 2021 and the rejoinder by the Peruvian State on October 20, 2021, with Enagás finally presenting its rejoinder on preliminary objections on January 17, 2022. The hearing phase continued

in September 2022, and briefs were filed in November 2022. Currently, the award is expected to be issued around June 30, 2023.

Also with regard to the ICSID, on January 21, 2020, Odebrecht filed a request to initiate arbitration against the Republic of Peru to recover its investment in GSP.

Regarding the Enagás' statement of claim, the main argument maintained by Enagás is that, if the Peruvian State had complied with its obligation under the Concession Contract, it would have calculated the NCA and organised the three auctions, which it was obliged to do, to award the Concession, and the proceeds of the auction would have been delivered to GSP, which would have applied the amount delivered to pay its creditors and return the capital to its shareholders. Enagás' claim is based on the fact that the Peruvian State must pay 100% of the NCA to GSP, since on January 24, 2018, one year has passed since the end of the concession contract and in that time there have been no calls for auctions. The absence of an auction means that the legal advisors of Enagás believe that it should be considered that GSP would have received 100% of the NCA because it was deprived of the possibility of receiving it when not even the first auction was convened. Therefore, starting from the NCA considered, a certain payments waterfall would have been applied.

Enagás considers that, taking into account the NCA of the Concession Assets determined by an independent expert, and also taking into account the payment waterfall as per the terms of the insolvency legislation, as well as the contracts between Enagás and the members and creditors of GSP relating to subordination and credit agreements, if the State had satisfied its obligations, and thus paid GSP the amount obtained in the auction, Enagás would have recovered its investment.

With respect to the amount of the NCA, there have been no variations other than the evolution of the exchange rate for certain items in Peruvian soles, maintaining at December 31, 2022 the valuation performed by a firm of independent appraisers hired by Enagás for a total updated value of the NCA of 1,953 million dollars (1,943 million dollars at December 31, 2021).

Taking into account this updated NCA, if the payment waterfall were to be applied to it as per the terms of the insolvency laws, the subordination and the assignment of credit agreements entered into by Enagás and its partners in GSP, Enagás would recover the total value of its investment claim with the ICSID in the amount of 511 million dollars.

In relation to the aforementioned contracts for the subordination of rights and assignment of credits, their effectiveness and form of application has been successively called into question by Enagás' partners in GSP through different arbitration proceedings, with the Peruvian legal advisors considering these agreements to be fully valid and enforceable. Likewise, the INDECOPI authority has recognised the full effectiveness of the aforementioned agreements in GSP's bankruptcy process. In relation to the arbitration proceeding still in process filed by Negocios de Gas, subsidiary from Aenza (formerly Graña y Montero) questioning the

legitimacy of Enagás to claim its credits against GSP, on July 13, 2021, Negocios de Gas communicated to the Court its withdrawal of the claim, thus requesting the end of the arbitration proceeding without the issuance of an award.

As regards the arbitration proceedings against the State of Peru, based on the conclusions determined by Enagás' external and internal legal advisors, the recoverability of the totality of the Enagás investment in GSP, consisting of receivables in relation to the aforementioned enforced guarantees to the total of 226.8 million dollars, interests of 1.8 million dollars, various invoices for professional services rendered to the amount of 7.6 million dollars and the share capital contributed to GSP for the amount of 275.3 million dollars, is considered likely.

With regard to the recovery periods, assessing the time taken to resolve a dispute of this complexity in an international arbitration as well as the periods considered in the aforementioned ICSID Resolution No. 1, and the review of the planned actions, June 30, 2023 is maintained as the estimated date for obtaining an award favourable to Enagás' interests.

Based on this, the amounts outlined in the preceding paragraph are recorded at their updated value in the Consolidated Balance Sheet at December 31, 2022 for a total amount of 473,999 thousands of euros (433,604 thousands of euros at December 31, 2021).

Other related matters

On March 12, 2018, Law No. 30737 was published "guaranteeing immediate payment to the Peruvian State to repair civil damage caused by corruption and related crimes". On May 9, 2018, Supreme Decree 096-2018-EF was published, enacting the regulations of the aforementioned Law.

In accordance with Article 9 of Law No. 30737, legal persons and legal entities in the form of partnerships, consortiums and joint ventures who may have benefited from the awarding of contracts, or subsequent to it, jointly with persons who have been convicted or who may have acknowledged having committed crimes against the public administration, asset laundering or related crimes, or their equivalents against the State of Peru, in Peru or abroad are classified as Category 2, and therefore fall within its scope of application.

In June 2019, the Peruvian Judiciary approved the Effective Partnership Agreement reached between the Odebrecht Group and the Peruvian Public Prosecutor's Office, and the GSP project was not included as one of the projects affected by corruption-related events. Subsequently, on October 15, 2019, Enagás Internacional received notification from the Peruvian Public Prosecutor's Office informing it of the existence of an extension of this effective partnership agreement with Odebrecht, in which it would be acknowledging that it had made illegal payments - according to the Public Prosecutor's Office - with respect to the GSP project, although there are still no facts known or consistent or proven links between GSP and corruption in the awarding of the project.

With regard to other processes of effective collaboration with other third parties, in the second quarter of 2022, the judicial

approval of those relating to José and Hernando Graña took place, with the remaining ones pending approval. From the information contained in the tax record, there is no consistent or proven element linking GSP to corruption in the awarding of the project.

In this regard, no new facts were presented in the arbitration before ICSID, neither in the statement of defence nor in the rejoinder, nor in the hearings held, which demonstrably and irrefutably link the GSP to corruption.

Notwithstanding the above comments on the extension of the initial Effective Collaboration Agreement signed by Odebrecht and the Public Prosecutor of Peru, there have been no significant developments regarding the actions of the Public Prosecutor of Peru on the investigation of Odebrecht's activities in Peru and other investigations carried out by the Special Team of the Peruvian Prosecutor's Office for alleged crimes that could somehow be related to the awarding of the project. In this regard, two investigations are known to be in progress:

• The first one signed with Folder 321-2014, related to aggravated collusion between a former Odebrecht employee and a public official, whose control and clean-up phase has been resumed on June 28, 2019, after the Supreme Court rejected the request of the Ad Hoc Attorney's Office of Peru to include one of Odebrecht's subsidiaries as a civil third party. At this stage it is expected that a decision on the opening of the oral proceedings will be taken. Based on the opinions of Enagás external legal advisors for the Peruvian criminal code, the possibility of sentencing Odebrecht's former employee is considered to be remote. In this same case, the preparatory investigative court has declared the incorporation of GSP as a liable third party as wrongful.
• In relation to the second investigation opened, sealed with Folder 12-2017, being that those under investigation include two employees of Enagás and Enagás Internacional, S.L.U., on February 27, 2020, it was decided to move to the preliminary investigation stage. Based on the opinion of our external legal advisors in Peruvian criminal law, it is maintained that to date there is no indication that the investigations could be detrimental to Enagás.

In relation to this second file, on December 30, 2020, the Peruvian Public Prosecutor's Office requested its incorporation as a civil plaintiff in the criminal proceedings in order to request the payment of a possible reparation in the aforementioned proceedings once a final judgement has been handed down, as well as in order to request possible precautionary measures that seek to ensure the eventual reparation. The initial request was rejected on formal grounds on June 4, 2021. On November 23, 2021, the Attorney's Office submitted a new request for 1,107 million dollars for the GSP project, which was formally admitted on January 26, 2022.

The inclusion of Enagás Internacional as one of the civilly liable third parties, if applicable, is therefore pending. The amount will be determined in detail by the criminal judge in charge once the final sentence has been handed down. According to both external and internal lawyers, the amount requested has

not been duly supported nor does it comply with the possible civil liability that could be claimed on the basis of the offences referred to in the indictment. An objective reference for the calculation is the one established by Law No. 30737, which assures payment of civil compensation to the Peruvian State. Considering the very preliminary stage of the criminal process, taking into account the elements of knowledge available to date and based on the conclusions of the specialist local lawyers, it is considered that the probability of the imposition of this compensation in any case does not exceed 50% (possible), and therefore it is not appropriate to register any provision, as it is considered a contingent liability. Likewise, in the event that it could eventually be declared well-founded, and the amount of the compensation could not be reliably estimated, the reference amount to be considered would be between 0 and 242 million dollars.

Moreover, with regard to civil compensation, even without evidence of a criminal conviction or a confession of the commission of crimes, as required under Article 9 of Law No. 30737, on June 28, 2018, the State of Peru classified Enagás Internacional on the "List of Contracts and Subjects of Category 2 indicating the legal person or legal entity included under Section II of Law No. 30737" in relation to the concession contract awarded to GSP. The application of the mentioned standard involves different measures to contribute to the payment of potential civil compensation, such as setting up an escrow account, reporting information, limiting transfers to other countries or preparing a compliance programme.

The total amount of the escrow account that would correspond to Enagás, estimated at 50% of the total average net equity, corresponding to its stake in GSP, confirmed with the Ministry of Justice, amounts to 65.5 million dollars. It is currently being determined, if applicable, how this amount would be provided, potentially through the granting of a bank bond letter.

In addition, the Peruvian State has also affirmed that the measure prohibiting companies included in Category 2 from making transfers outside of Peru, pursuant to Law No. 30737, is applicable. Based on the conclusions of Enagás' external and internal legal advisors, it is maintained that this measure would be applicable to the investment in GSP and should not restrict

In order to put into practice the application of these Legal Stability Agreements, direct negotiations with the Peruvian State were initiated on February 24, 2021, followed by the submission by Enagás of a request for international arbitration under the Spanish-Peruvian APPRI on December 23, 2021, with the ICSID arbitral tribunal for these proceedings being established in December 2022. In this regard, on February 9, 2023, Procedural Resolution no. 1 was issued, which establishes the procedural rules governing the arbitration procedure until the award is rendered. In addition, Enagás Internacional has pledged its TGP shares in favour of Enagás Financiaciones, S.A.U. and Enagás, S.A. to guarantee the payment of its present or future obligations and debts.

In view of the above, it is still maintained that these regulations do not have a negative effect on the recovery of accounts receivable through the international arbitration process indicated above recorded on the balance sheet at December 31, 2022.

Based on all of the above, the directors of Enagás, in line with the opinion of their external and internal legal advisors, and of an independent expert and independent expert accountant, consider these facts to have no bearing on the estimation for recovery of the investment in the stake in GSP and the previously mentioned receivables to the amount of 473,999 thousands of euros (433,604 thousands of euros at December 31, 2021).

Impairment losses on assets

At December 31, 2022, the impact resulting from analysis of the expected loss in accordance with IFRS 9 for the financial assets of the Enagás Group explained in previous paragraphs amounts to 433 thousands of euros (217 thousands of euros at December 31, 2021).

b) Financial liabilities

Details of current and non-current "Financial Liabilities" of the Enagás Group at December 31, 2022 and December 31, 2021 are as follows:

	Class
	Fair Value with		Derivatives
	changes in Profit and Loss				designated as
			Amortised cost		hedging instruments		Total
Categories	2022	2021	2022	2021	2022	2021	2022	2021
Debts with credit institutions (Note 3.4)	—	—	1,224,172	1,668,541	—	—	1,224,172	1,668,541
Debt settlement costs and accrued interest payable (Note 3.4)	—	—	(4,080)	(3,701)	—	—	(4,080)	(3,701)
Debentures and other marketable securities (Note 3.4)	—	—	2,350,000	2,750,000	—	—	2,350,000	2,750,000
Debt settlement costs and accrued interest payable (Note 3.4)	—	—	(34,014)	(49,970)	—	—	(34,014)	(49,970)
Derivatives (Note 3.6)	—	—	—	—	19,340	2,178	19,340	2,178
Trade payables	—	—	14	376	—	—	14	376
Other financial liabilities (Note 3.4)	15,600	15,600	364,765	425,904	—	—	380,365	441,504
Total non-current financial liabilities	15,600	15,600	3,900,857	4,791,150	19,340	2,178	3,935,797	4,808,928
Debts with credit institutions (Note 3.4)	—	—	462,284	111,742	—	—	462,284	111,742
Debt settlement costs and accrued interest payable (Note 3.4)	—	—	8,224	1,318	—	—	8,224	1,318
Debentures and other marketable securities (Note 3.4)	—	—	400,000	750,000	—	—	400,000	750,000
Debt settlement costs and accrued interest payable (Note 3.4)	—	—	20,588	31,782	—	—	20,588	31,782
Derivatives (Note 3.6)	—	—	—	—	4,790	86,086	4,790	86,086
Trade payables (*) (Note 2.3)	—	—	617,672	377,512	—	—	617,672	377,512
Other financial liabilities (Note 3.4)	—	—	73,855	75,200	—	—	73,855	75,200
Total current financial liabilities	—	—	1,582,623	1,347,554	4,790	86,086	1,587,413	1,433,640
Total financial liabilities	15,600	15,600	5,483,480	6,138,704	24,130	88,264	5,523,210	6,242,568

(*) The amount of "Trade payables" does not include the balance with the Public Administrations as it is not a financial liability.

The detail by maturity of non-current financial debt for 2022 and 2021, respectively, is as follows:

Maturities at the end of 2022	2024	2025	2026	2027 and later	Total
				years
Debentures and other marketable securities	—	600,000	500,000	1,250,000	2,350,000
Debts with credit institutions	51,742	895,468	51,886	225,076	1,224,172
Total	51,742	1,495,468	551,886	1,475,076	3,574,172
Maturities at the end of 2021	2023	2024	2025	2026 and later years	Total
Debentures and other marketable securities	400,000	—	600,000	1,750,000	2,750,000
Debts with credit institutions	899,724	56,984	434,907	276,926	1,668,541
Total	1,299,724	56,984	1,034,907	2,026,926	4,418,541

The amounts and characteristics of the main instruments included under the headings "Debentures and other marketable securities" and "Debts with credit institutions" at December 31, 2022 are detailed below:

	Instrument	Nominal Interest	Currency of issue		Maturity Nominal outstanding
					(thousands of euros)
	Loan	EURIBOR + Margin	EUR	2031	210,000
	Loan	Fixed rate	EUR	2031	112,500
Institutional debt	Loan	EURIBOR + Margin	EUR	2027	29,545
	Loan	Fixed rate	EUR	2030	80,000
(EIB and ICO)	Loan	EURIBOR + Margin	EUR	2023	25,000
	Loan	EURIBOR + Margin	EUR	2023	1,000
	Loan	Fixed rate	EUR	2026	193
	Loan	EURIBOR + Margin	EUR	2025	450,000
Banking debt	Loan	LIBOR + Margin	USD	2025	393,729
	Loan	TSOFR + Margin	USD	2023	384,489
				Nominal outstanding	1,686,456
				Debt settlement expenses	(4,080)
			Accrued interest payable		8,224
			Total financial debts with credit institutions		1,690,600

	Instrument	Coupon	Currency of issue	Maturity	Nominal outstanding
					(thousands of euros)
Bond issue and Private Placements	EMTN bonus	1.25%	EUR	2025	600,000
	EMTN bonus	1.00%	EUR	2023	400,000
	EMTN bonus	1.38%	EUR	2028	750,000
	EMTN bonus	0.75%	EUR	2026	500,000
	EMTN bonus	0.38%	EUR	2032	500,000
	Nominal outstanding IFRS 9 and others		2,750,000
			(31,057)
	Accrued interest payable				17,631
	Total debentures and other marketable securities		2,736,574

The amounts and characteristics of the main instruments included under the headings "Debentures and other marketable securities" and "Debts with credit institutions" at December 31, 2021 are detailed below:

	Instrument	Nominal Interest	Currency of issue		Maturity Nominal outstanding
					(thousands of euros)
	Loan	EURIBOR + Margin	EUR	2031	233,333
	Loan	Fixed rate	EUR	2031	125,000
	Loan	EURIBOR + Margin	EUR	2027	35,455
Institutional debt	Loan	Fixed rate	EUR	2030	90,000
(EIB and ICO)	Loan	EURIBOR + Margin	EUR	2022	10,000
	Loan	EURIBOR + Margin	EUR	2023	75,000
	Loan	EURIBOR + Margin	EUR	2023	1,000
	Loan	Fixed rate	EUR	2026	200
	Credit line	LIBOR + Margin	USD	2024	1,820
Banking debt	Credit line	LIBOR + Margin	USD	2024	3,226
	Loan	LIBOR + Margin	USD	2023	197,802
	Loan	LIBOR + Margin	USD	2023	140,659
	Loan	LIBOR + Margin	USD	2024	383,164
	Loan	LIBOR + Margin	USD	2024	483,516
	Loan	Fixed rate	EUR	2031	108
				Nominal outstanding	1,780,283
				Debt settlement expenses	(3,701)
				Accrued interest payable	1,318
			Total financial debts with credit institutions		1,777,900

	Instrument	Coupon	Currency of issue		Maturity Nominal outstanding
					(thousands of euros)
	EMTN bonus	2.50%	EUR	2022	750,000
	EMTN bonus	1.25%	EUR	2025	600,000
Bond issue and	EMTN bonus	1.00%	EUR	2023	400,000
Private Placements	EMTN bonus	1.38%	EUR	2028	750,000
	EMTN bonus	0.75%	EUR	2026	500,000
	EMTN bonus	0.38%	EUR	2032	500,000
				Nominal outstanding	3,500,000
				IFRS 9 and others	(49,432)
		31,244
			Total debentures and other marketable securities		3,481,812

3.4 Financial debts

ACCOUNTING POLICIES

• Financial liabilities are initially measured at the fair value of the consideration received less directly attributable transaction costs.
• Subsequently, financial liabilities are recognised at amortised cost, except for derivative financial instruments, which are recognised at fair value.
• Financial liabilities are derecognised when the related contractual obligations are cancelled or expired. The Group also derecognises financial liabilities when there is a material change in cash flows or debt terms and conditions.
• Options on interest held by minority shareholders are accounted for by recognising the minority interests arising in a business combination and recognising a financial liability against equity. The changes in fair value of the financial liability are accounted for in the Consolidated Income Statement.

	2022	2021
Debentures and other
marketable securities	2,736,574	3,481,812
Debts with credit institutions	1,690,600	1,777,900
Other receivables	454,220	516,704
Total financial debts	4,881,394	5,776,416
Non-current financial debts
(Note 3.3)	3,916,443	4,806,374
Current financial debts (Note
3.3)	964,951	970,042

The fair value of debts owed to credit entities as well as debentures and other marketable securities at December 31, 2022 and 2021 is as follows:

	2022	2021
Debts with credit institutions	1,745,420	1,790,482
Debentures and other marketable securities	2,472,921	3,621,028
Fair value total	4,218,341	5,411,510
Carrying amount total	4,427,174	5,259,712

a) Net financial debt

Net financial debt is the main indicator used by Management to measure the Group's debt level. It is comprised of gross debt less cash in hand:

	2022	2021
Debts with credit institutions (Note 3.3)	1,690,600	1,777,900
Debentures and other marketable securities (Note 3.3)	2,736,574	3,481,812
Loans from the General Secretariat of Industry, the General Secretariat of Energy,
Oman Oil and ERDF E4E	1,112	1,745
Leases (IFRS 16)	399,903	459,550
Gross financial debt	4,828,189	5,721,007
Cash and other cash equivalents (Note 3.8)	(1,359,284)	(1,444,151)
Net financial debt	3,468,905	4,276,856

The gross financial cost during 2022 for the Group's financial debt amounted to 1.8% (1.7% in 2021). The percentage of financial debt at fixed interest rate at December 31, 2022 amounted to more than 80%, while the average maturity period at that date amounted to 4.4 years (4.5 years at December 31, 2021). The gross financial costs are determined by dividing gross financial expenses by the average gross debt multiplied by the number of effective days in the year (360 days) divided by the natural days of the period (365 days),

where gross financial expenses correspond to interest on financial debt and hedges. Further, average gross debt is calculated as the daily average of nominal amounts of financial debt.

b) Debentures and other marketable securities

The most significant events of the 2022 financial year include:

(*) Includes interest paid, accrued interest, valuations, and other.

• On April 11, 2022, the 750 million euros bond held by Enagás Financiaciones, S.A.U. matured.
• On April 7, 2022, the Cross Currency Swap derivative associated with the previous bond matured.
• On May 27, 2022, Enagás Financiaciones, S.A.U. renewed the Euro Medium Term Note (EMTN) programme for a maximum amount of 4,000 million euros, registered in the Luxembourg Stock Exchange in 2012, with Enagás, S.A. as guarantor.
• In addition, on May 27, 2022, Enagás Financiaciones, S.A.U. renewed the Euro Commercial Paper (ECP) programme for a maximum amount of 1,000 million euros, registered in the Irish Stock Exchange on May 4, 2017, with Enagás, S.A. as guarantor.

c) Debts with credit institutions

(*) Includes interest paid, accrued interest, valuations, and other.

The most significant events of the 2022 financial year include:

• On December 28, 2022, Enagás Financiaciones SA extended the maturity of the Revolving Credit Facility from April 2023 to October 2024, and increased its amount from 250 million euros to 550 million euros.
• On December 22, Enagás Internacional repaid 140 million dollars (132 million euros) on the loan contracted in December 2021 and maturing in January 2023.
• On December 27, Enagás International repaid the 160 million dollars (150 million euros) loan contracted in December 2021 and maturing in January 2023.
• On December 28, Enagás, S.A. repaid the 225 million dollars (211 million euros) loan contracted in January 2021 and maturing in January 2023.

• On December 28, Enagás Financiaciones has taken out a new loan in the amount of 450 million euros, maturing in January 2025.

At December 31, 2022, the Group had access to credit lines in the amount of 2,434,489 thousands of euros (1,860,440 thousands of euros in 2021), of which 2,434,489 thousands of euros had not been drawn down (1,855,393 thousands of euros in 2021) (Note 3.8). Along these lines, a sustainable syndicated credit line amounting to 1,500,000 thousands of euros is included, the price of which is linked to the reduction of CO² emissions. This credit line is held by 12 national and international financial institutions.

In the opinion of the Directors of the Company, this situation allows for sufficient funding to meet possible liquidity requirements in the short-term considering its current obligations.

d) Other financial liabilities

	2022	2021
Loans from the General Secretariat of Industry, the General Secretariat of
Energy, Oman Oil and ERDF E4E	1,112	1,745
Fair value of sales option on interest held by EVE	15,600	15,600
Leases (NIIF 16) (Note 2.4)	399,903	459,550
Others	37,605	39,809
Total other financial liabilities	454,220	516,704

At December 31, 2022 and December 31, 2021, "Other receivables" mainly includes the financial liability associated with IFRS 16 on leases. Payments for this item amounted to 38,175 thousands of euros in 2022 (36,481 thousands of euros in 2021). "Other" includes accounts payable to suppliers of fixed assets amounting to 33,123 thousands of euros at the end of 2022.

3.5 Financial results

	2022	2021
Income from associates	252	893
Finance revenue from third parties	24,394	19,548
Income/expenses in cash and other cash equivalents	12,879	(942)
Others	—	25
Financial income	37,525	19,524
Financial expenses and similar	(2,354)	(2,134)
Loan interest	(95,096)	(95,363)
Capitalised interest	(16)	(9)
Others	(2,882)	(5,503)
Financial expenses	(100,348)	(103,009)
Gains (losses) on hedging instruments	20	(71)
Exchange differences	70	144
Impairment and result from disposal of financial instruments (Notes 1.5 and 1.6)	110,891	—
Financial result	48,158	(83,412)

3.6 Derivative financial instruments

ACCOUNTING POLICIES

• The Enagás Group contracts derivative financial instruments to cover its exposure to financial risk arising from fluctuations of interest rates and/or exchange rates, and does not use derivative financial instruments for speculative purposes. All derivative financial instruments are measured, both initially and subsequently, at fair value. The differences in fair value are recognised in the Consolidated Income Statement except in the case of specific treatment under hedge accounting.
• The measurement and recognition criteria for derivative financial instruments in keeping with the different types of hedge accounting are as follows:
• Cash flow hedges

Hedges for exposure to changes in cash flows that: (i) are attributed to a specific risk associated with an asset or liability recognised for accounting purposes, with a highly likely expected transaction or with a firm commitment if the hedged risk is an exchange rate and (ii) may affect profit for the period. The effective portion of the changes in fair value of the hedging instrument are recognised under Equity, and the gains and losses relating to the ineffective portion are recognised in the Consolidated Income Statement. The accumulated amounts under Equity are transferred to the Consolidated Income Statement in the periods in which the hedged items affect the Consolidated Income Statement.

◦ Net investment hedging in a foreign operation

These instruments hedge the foreign currency risk arising from net investments in foreign operations.

The hedges for net investments in transactions carried out abroad are accounted for in a similar manner to cash flow hedges, though the valuation changes in these transactions are accounted for as translation differences under "Adjustments for changes in value" in the accompanying Consolidated Balance Sheet.

These translation differences are taken to the Consolidated Income Statement when the gain or loss on disposal of the hedged item occurs.

In order for these derivative financial instruments to be classified as hedges they are initially designated as such, and the relationship between the hedging instrument and the hedged items is documented, together with the risk management objective and the hedge strategy for the various hedged transactions. In addition, the Group verifies initially and then periodically throughout the life of the hedge (and at least at the end of each reporting period) that the hedging relationship is effective, i.e., that it is prospectively foreseeable that the changes in fair value or in the cash flows from the hedged item (attributable to hedged risk) are almost entirely offset by those of hedging instrument.

Any remaining loss or gain from the hedging instrument will represent an ineffectiveness of the hedge to be recognised in income of the period.

• Hedge accounting is discontinued when the hedging instrument expires, or when it is sold, or exercised, or when it no longer qualifies for hedge accounting (after taking into account any rebalancing of the hedging relationship, if applicable). At that time, any accumulated gain or loss on the hedging instrument recognised in equity is retained in equity until the hedged transaction occurs.
• In accordance with IFRS 13, for purposes of presenting financial information, the measurements of fair value are classified as Level 1, 2, or 3, as indicated in Note 3.3.

SIGNIFICANT ESTIMATES

• The Group has determined that most of the inputs employed to determine the fair value of the derivative financial instruments are in Level 2 of the hierarchy, but that the adjustments for credit risk use Level 3 inputs such as credit estimates based on a credit rating or comparable companies to evaluate the likelihood of the bankruptcy of the company or of the company's counterparties.
• The Group evaluated the relevancy of the inputs and recognised the corresponding adjustments to credit risk in the total valuation of derivative financial instruments, which were not significant.
• Thus, the entire portfolio of derivative financial instruments is classified under Level 2 of the hierarchy.

						Income and expenses recognised directly in equity		Amounts transferred to the income statement
								Counterpart
			Notional	Fair value	Hedging	Translation	Changes	y risks and	Other	Fair value
Category	Type	Maturity	contracted	12.31.2021	transactions	differences	in results	other	changes (*)	12.31.2022
Cash flow hedges
Interest rate swap	Floating to fixed	Dec-22	141,268	(14)	(13)	(7)	6	—	—	—
Interest rate swap	Floating to fixed	Dec-22	198,658	(36)	(34)	(18)	16	—	—	—
Interest rate swap	Floating to fixed	Dec-22	198,658	(36)	2,807	—	(2,807)	—	36	—
Interest rate swap (**)	Floating to fixed	Jan-23	25,000	—	6	—	—	—	—	6
Interest rate swap (**)	Floating to fixed	Dec-23	955,111 —		2,671		(200)			2,471
Interest rate swap (**)	Floating to fixed	July-24	281,334	—	234	(3)	—	—	—	231
Net investment hedging
Cross Currency Swap (***)	Fixed to fixed	Apr-22	400,291	(81,728)	2,605	76,952	2,171	—	—	—
Cross Currency Swap	Fixed to fixed	May-28	237,499	(6,450)	(10,515)	(11,626)	4,919	—	—	(23,672)
Total			2,437,819	(88,264)	(2,239)	65,298	4,105	—	36	(20,964)

(*) Includes interest accrued and not paid, other commissions relating to derivative financial instruments, as well as changes in the fair value of the hedging derivative.

(**) Derivative financial instruments arranged in the year 2022. (See Note 3.6 a).

(***) This financial instrument matures in 2022. (See Note 3.6 a).

a) Cash flow hedges

The following rate hedges were arranged in 2022:

• In the company Enagás Financiaciones, S.A.U. hedges amounting to 580 million euros maturing in December 2023.
• In Enagás Internacional, S.L.U. hedges for 400 million dollars (375 million euros) maturing in December 2023.
• In Enagás Holding USA, S.L.U. hedges for 300 million dollars (281 million euros) maturing in July 2024.

With respect to cash flow hedges, the breakdown by period in which the related cash flows will arise is as follows:

Contracted				2025 and
amount (thousands of	Total	2023	2024	later years
375,111 euros)	257	257	—	—
25,000	6	6	—	—
605,000	2,215	2,215	—)	—
281,334	231	689	(458)	—
1,286,445	2,709	3,167	(458)	—

b) Net investment hedging in foreign operations

Upon maturity of one of the financial instruments of this type during 2022 (Note 3.4), the main characteristics of the derivative financial instrument contracted as a hedge of the net investment are as follows:

	Contracted	Contracted
	amount in	amount in
Category	Euros	USD		Type Maturity
Cross
Currency			Fixed to	May
Swap	237,499	270,000	fixed	2028
Total	237,499	270,000

The investment considered as a hedged item in the aforementioned hedging relationship is as follows:

Project	Investments hedged in USD
TgP	270,000
Total	270,000

As explained in Note 3.7 below, the Enagás Group directly finances part of the foreign investments with foreign currency, which is then designated as a net foreign investment.

By this means, the Enagás Group tries to designate exchange rate hedges to cover fluctuations in the exchange rates of its investments in foreign currency. As required by IFRS 9, an eligible hedged item and hedging instrument have to be designated. By this means, the exchange fluctuations of the investment in foreign currency are associated with the fluctuations due to the debt obtained to finance the acquisition, which is also in that currency (Note 3.7), in such a way that there is no impact on the income statement.

With respect to net investment hedging in foreign operations, the breakdown by period in which the related cash flows will arise is as follows:

2022	2023	2024	2025	2026	2027 and later years	Total
Derivatives	(4,790)	(4,396)	(4,198)	(4,026)	(6,262)	(23,672)
2021	2021	2022	2023	2024	2025 and later years	Total
Derivatives	(86,086)	(4,210)	(4,093)	(3,975)	10,186	(88,178)

3.7 Financial and capital risk management

The Enagás Group is exposed to certain risks which it manages with a risk control and management model which is directed towards guaranteeing achievement of the Company's objectives in a predictable manner with a medium-moderate risk profile. This model allows to adapt to the complexity of the business activity in a competitive environment globalised, in a complex economic context, where the materialisation of risks is faster and with an evident contagion effect.

The model is based on the following:

• The consideration of some standard types of risk to which the Company is exposed.
• Separation and independence of risk control and management functions articulated in three lines of "defence".
• The existence of Governing Bodies responsible for matters relating to risk exposure.
• Establishing a risk-prone framework which defines the risk levels considered acceptable and that are in line with established business objectives and the market environment in which the Group carries out its activities.

• The transparency of information supplied to third parties, to guarantee its reliability and accuracy.

The integral analysis of all risks allows the appropriate control and management thereof, an understanding of the relationships between them and facilitates their joint assessment. Enagás has established a regulatory framework through its "Risk control and management policy" and "General risk control and management standard," which define the basic principles governing the risk function and identify the responsibilities of the company's various governing bodies.

The risk control and management function is articulated around three lines of defence, each presenting different responsibilities:

• First line of defence: organisational units which assume risks in the normal course of their activities. They are the owners of the risks and are responsible for identifying and measuring their respective risk exposure.
• Second line of defence: the Risk Unit, in charge mainly of ensuring that the risk control and management system works correctly, defining the regulatory framework and approach, and performing periodic monitoring and overall control of the company's risks.

• Third line of defence: the Internal Audit Department, in charge of supervising the efficiency of the risk controls in place.

The Governing Bodies responsible for risk control and management are the following:

• The Board of Directors is responsible for approving the risk control and management policy. Other responsibilities with respect to risks are delegated in the Audit and Compliance Committee.
• Audit and Compliance Committee: the main function is to ensure the independence of the risk control and management function, supervise the efficacy of the risk control and management systems as well as evaluating the Group's risk exposure (identification, measurement, and establishment of management measures).
• Executive Committee: responsible for approving the general risk framework, defining the Group's strategy and risk appetite, and monitoring risk levels.

The main risks of a financial and tax nature to which the Group is exposed are as follows:

Credit risk

Credit risk relates to the possible losses arising from the nonpayment of monetary or quantifiable obligations of a counterparty to which the Enagás Group has granted net credit which is pending settlement or collection.

Credit risk in connection with trade receivables arising from its commercial activity is historically very limited as the Group operates in a regulated environment (Note 1.1). However, regulations have been developed establishing standards for managing guarantees in the Spanish gas system and which oblige shippers to provide guarantees for: (i) contracting capacity in infrastructure with regulated third-party access and international connections, (ii) settlement of imbalances; and (iii) participation in the organised gas market.

The Enagás Group is also exposed to the risk of its counterparties not complying with obligations in connection with financial derivatives and placement of surplus cash balances. In order to mitigate this risk, these transactions are carried out in a diversified manner with highly solvent entities.

Interest rate risk

Interest rate fluctuations affect the fair value of those assets and liabilities that accrue interest at fixed rates, and the future cash flows from assets and liabilities that accrue interest at floating rates.

The objective of interest rate risk management is to create a balanced debt structure that minimises financial costs over a multi-year period while also reducing volatility in the Consolidated Income Statement.

Based on the Enagás Group's estimates and debt structure targets, hedges are put in place using derivatives that reduce these risks (Note 3.6).

Exchange rate risk

Exchange rate fluctuations may affect positions held with regard to debt denominated in foreign currency, certain payments for services and the purchase of capital goods in foreign currency, income and expenses relating to companies whose functional currency is not the euro and the effect of converting the financial statements of those companies whose currency is not the euro during the consolidation process. With a view to mitigating said risk, the Group can avail itself of financing obtained in US dollars, as well as contracting derivative financial instruments which are subsequently designated as hedging instruments (Note 3.6). In addition, the Enagás Group tries to balance the cash flows of assets and liabilities denominated in foreign currency in each of its companies.

Liquidity risk

Liquidity risk arises as a consequence of differences in the amounts or payment and collection dates relating to the different assets and liabilities held by the Group.

The liquidity policy followed by the Enagás Group is oriented towards ensuring that all short-term payment commitments acquired are fully met without having to secure funds under burdensome terms. For this purpose, different management measures are taken such as maintenance of credit facilities ensuring flexibility, sufficient amounts and sufficient maturities, diversified sourcing for financing needs via access to different markets and geographical areas, as well as the diversification of maturities in debt issued.

The financial debt of the Group at December 31, 2022 has an average maturity of 4.4 years (4.5 years at December 31, 2021) (Note 3.4).

Tax risk

The Enagás Group is exposed to possible modifications in tax regulatory frameworks and uncertainty relating to different possible interpretations of prevailing tax legislation, potentially leading to negative effects on results.

The Enagás Group has a Board-approved tax strategy, which includes the policies governing compliance with its tax obligations, attempting to avoid risks and tax inefficiencies

Climate change risk

The Enagás Group is exposed to certain risks arising from climate change. These risks are managed and assessed in an integrated manner within the risk management model described in the management report.

Risks are identified and quantified which arise from factors such as political and regulatory measures to promote the use of renewable energy, natural disasters or adverse weather conditions, the volume of CO2 emissions and prices, the use and technological development of renewable gases, and reputational risks.

The impact of climate-related risks and how management assesses these risks to incorporate them into the judgements, estimates and uncertainties that affect the consolidated financial statements are described in Note 4.6.a.

Other risks

Given the dynamic nature of the business and its risks, and despite having a risk control and management system that responds to the best international recommendations and practices, it is not possible to guarantee that some risk may exist that is not identified in the risk inventory of the Enagás Group.

In addition, the internationalisation process carried out by the Enagás Group in recent years means that a part of its operations are carried out by companies over which it does not exercise control and which perform their activities within different regulatory frameworks and with different business dynamics, so that potential risks may arise relating to financial investment.

Also, there are uncertainties related to the deployment of renewable gases in the company and its future role in the energy sector.

The Enagás Group is also exposed to the cross-cutting risks that do not correspond to a single category but may be correlated with several; these are risks related to the three pillars of sustainability: environmental, social and governance, ESG (for more detail on climate change risks, see the 'Climate action and energy efficiency') chapter.

a) Quantitative information

Interest rate risk

The percentage of debt at fixed interest rates at December 31, 2022 and December 31, 2021, amounted to more than 80%. Taking into account these percentages of financial debt at fixed rates, and after performing a sensitivity analysis to changes in market interest rates, the Group considers that, according to its estimates, the impact on results of such variations on financial costs relating to variable rate debt could be as follows:

			Interest rate change
	2022		2021
	25 bps	-10 bps	25 bps	-10 bps
Change in
financial costs	591	(236)	2,612	(1,045)

In addition, the aforementioned changes would not produce any significant changes in the Company's equity position in connection with contracted derivatives.

Exchange rate risk

The Enagás Group obtains financing fundamentally in euros, although it maintains certain financing in US dollars. The currency that generates the greatest exposure to exchange rate changes is the US dollar.

The exposure of the Group to changes in the US dollar/ euro exchange rate is mainly determined by the effect of translating the financial statements of the companies whose functional currency is the US dollar. In addition, there are Group companies whose functional currency is the Peruvian nuevo sol and pound sterling.

Further, the Group also holds loans denominated in US dollars granted by Enagás Internacional, S.L.U. to companies in which it does not control a majority stake.

The sensitivity of profit /(loss) for the year and equity to exchange rate risk, via appreciation or depreciation of exchange rates and based on the financial instruments held by the Enagás Group at December 31, 2022, is shown below:

	Thousands of euros
	Appreciation / (Depreciation) of the euro against the dollar
	2022		2021
	5.00%	-5.00%	5.00%	-5.00%
Effect on net profit	3,028	(3,028)	3,407	(3,407)
Effect on equity	11,422	(11,422)	7,000	(7,000)

b) Capital management

The Enagás Group carries out capital management at corporate level and its objectives are to ensure financial stability and obtain sufficient financing for investments, optimising the cost of capital in order to maximise the value created for the shareholder while maintaining its commitment to solvency.

The Enagás Group uses its leverage ratio as an indicator for monitoring its financial situation and capital management. The ratio is defined as the result of dividing consolidated net financial debt by net consolidated assets (understood as the sum of net financial debt and consolidated own funds).

The Group's financial leverage, calculated as the ratio of net financial debt and total financial net debt plus own funds at December 31, 2022 and 2021, is as follows:

	2022	2021
Net financial debt (Note 3.4)	3,468,905	4,276,856
Shareholders' equity	3,076,477	3,158,421
Financial leverage	53.0 %	57.5 %

On September 9, 2022, the credit rating agency Fitch Ratings maintained Enagás' rating outlook at stable, and placed Enagás' rating at "BBB". On January 26, 2022, the credit rating agency Standard & Poor's placed Enagás' credit rating at "BBB", with a stable outlook.

3.8 Cash flows

ACCOUNTING POLICIES

Under the Cash and other cash equivalents heading of the Consolidated Balance Sheet the Group recognises cash in hand, sight deposits, and other highly liquid short-term investments that can be readily converted into cash and are not exposed to the risk of changes in value.

a) Cash and cash equivalents

	12.31.2022	12.31.2021
Treasury	562,474	1,294,105
Other cash and cash
equivalents	796,810	150,046
Total	1,359,284	1,444,151

"Other liquid assets" includes those deposits that have a maturity of less than three months.

Generally, the banked cash accrues interest at rates similar to daily market rates. The deposits maturing in the short-term are easily convertible into cash, and accrue interest at the going market rates. There are no significant restrictions on cash drawdown other than those indicated in Note 3.3.a in relation to the GSP project in Peru.

b) Available funds

In order to guarantee liquidity, the Enagás Group has arranged loans and credit lines which it has not drawn down. Thus, liquidity available to the Enagás Group is broken down as follows:

Available funds	12.31.2022	12.31.2021
Cash and cash equivalents	1,359,284	1,444,151
Other available funds (Note 3.4)	2,434,489	1,855,393
Total available funds	3,793,773	3,299,544

In the opinion of the Directors of the Company, this situation allows for sufficient funding to meet possible liquidity requirements in the short-term considering its current obligations.

c) Reconciliation of movements in liabilities arising from financing activities and cash flows

		Debts with credit	Debentures and
		institutions	marketable securities	Total
12.31.2021		1,777,900	3,481,812	5,259,712
	Issues	553,689	1,294,000	1,847,689
Cash flows	Repayment and redemption	(729,928)	(2,044,000)	(2,773,928)
	Interest paid	25,134	(45,900)	(20,766)
Without an impact on	Interest expense	34,422	50,695	85,117
cash flows	Changes due to exchange rates and other	29,383	(33)	29,350
12.31.2022		1,690,600	2,736,574	4,427,174

The information for the 2021 financial year is detailed below:

		Debts with credit	Debentures and
		institutions	marketable securities	Total
12.31.2020		1,338,246	3,473,931	4,812,177
	Issues	1,892,937	2,000,000	3,892,937
Cash flows	Repayment and redemption	(1,505,365)	(2,010,000)	(3,515,365)
	Interest paid	(11,290)	(45,981)	(57,271)
	Interest expense	11,416	63,918	75,334
Without an impact on cash flows	Changes due to exchange rates and other	51,956	(56)	51,900
12.31.2021		1,777,900	3,481,812	5,259,712

4. Other information

RELEVANT ASPECTS

Remuneration for Board of Directors and Senior Management

• Remuneration to the Board of Directors, without taking into account insurance premiums and termination benefits, amounted to 5,119 thousands of euros (5,026 thousands of euros in 2021) (Note 4.4).
• Remuneration to the Senior Managers, without taking account of pension plans, insurance premiums and termination benefits, amounted to 4,593 thousands of euros (4,485 thousands of euros in 2021) (Note 4.4).

4.1 Investment properties

ACCOUNTING POLICIES

Investment properties

• The cost model is applied for measuring investment property, that is, the corresponding assets are measured at acquisition cost less the corresponding accumulated amortisation and any impairment losses. However, as one plot of land is not currently in use, it was measured at its recoverable amount, calculated as the fair value less the necessary costs for its sale.
• The market appraisal was performed by the independent expert in accordance with the Governing Rules of the Royal Institution of Chartered Surveyors (RICS), set out in the so-called "Red Book" - RICS Valuation - Professional Standards, January 2014. Said market valuations defined by RICS are internationally recognised by advisors and accountants providing services for investors and corporations that own investment properties, as well as by The European Group of Valuers (TEGoVA) and The International Valuation Standards Committee (IVSC).

	Balance at December	Impairment	Balance at December	Impairment	Balance at December
	31, 2020	allowances 2021	31, 2021	allowances 2022	31, 2022
Cost (1)	47,211	—	47,211	—	47,211
Impairment	(28,191)	(360)	(28,551)	(1,250)	(29,801)
Net value	19,020	(360)	18,660	(1,250)	17,410

(1) Corresponds entirely to a plot of land located at km 18 of the A-6 motorway in Las Rozas (Madrid). The independent company Jones Lang LaSalle España, S.A. issued a valuation report dated December 31, 2022, which concluded that the recoverable amount of the plot at that date amounted to 17,410 thousands of euros (18,660 thousands of euros at December 31, 2021). It is worth noting that the aforementioned independent expert's report did not include any scope limitations with respect to the conclusions reached. There are no mortgages or encumbrances of any type on said property. In addition, the Group has contracted the corresponding insurance policies to cover third party civil liabilities.

4.2 Tax situation

ACCOUNTING POLICIES

• Income tax expense for the year is calculated as the sum of current tax, resulting from applying the corresponding tax rate to taxable income for the year (after applying any possible deductions) and any changes in deferred tax assets and liabilities.
• Corporate income tax is recognised in the Consolidated Income Statement or in equity accounts in the Consolidated Balance Sheet depending on where the related profits or losses were recognised.
• Deferred tax expense or income relates to the recognition and derecognition of deferred tax assets and liabilities. These include the temporary differences, identified as those amounts expected to be payable or recoverable, arising from the difference between the book value of assets and liabilities and their tax bases, as well as any unused tax credits. These amounts are measured by applying the tax rate to the corresponding temporary differences or tax credits at which they are expected to be recovered or settled.
• Deferred tax assets are only recognised when the Group expects sufficient future taxable profits to recover the deductible temporary differences. Deferred tax liabilities are recognised for all taxable temporary differences except for those arising from the initial recognition of goodwill.
• Recognised deferred tax assets are reassessed at the end of each reporting period and the appropriate adjustments are made when there are doubts as to their future recoverability.
• The Group offsets deferred tax assets and deferred tax liabilities corresponding to one and the same tax authority, as established in IAS 12.74.

SIGNIFICANT ESTIMATES AND

• JUDGEMENTS In accordance with prevailing legislation in Spain, tax returns cannot be considered final until they have been inspected by the tax authorities or until the four-year inspection period has elapsed. However, the four-year period can vary in the case of Group companies subject to other fiscal regulations. The Directors consider that the income tax returns for the aforementioned taxes have been filed correctly and, therefore, even in the event of discrepancies in the interpretation of prevailing tax legislation with respect to the treatment applied, the resulting potential tax liabilities, if any, would not have a material impact on these Consolidated Annual Accounts.
  • The deferred tax assets were recognised in the balance sheet as the Directors believe, based on the best estimate of future profits and reversals of deductible temporary differences, that it is probable that these assets will be recovered.

a) Balances with Tax Authorities

	2022	2021
Debit balances
Deferred tax assets (Note 4.2.f)	72,969	78,547
Income tax and other taxes (1)	453	12,357
Value added tax	24,238	16,565
Total current assets	24,691	28,922
Credit balances
Deferred tax liabilities (Note 4.2.f)	221,720	237,553
Income tax (1)	70,204	2,605
Value added tax	670	768
Tax Authorities creditor for withholdings and other (2)	79,824	34,510
Total current liabilities	150,698	37,883

(1) Corresponds mainly to the Corporate Income Tax of the 2022 Tax Group, amounting to 453 thousands of euros of balances receivable (12,327 thousands of euros at December 31, 2021 for the 2020 financial year). Corporate income tax of the Tax Group for the year 2021 amounted to 630 thousands of euros in current tax liabilities. The remaining amount is for the capital gains tax payable, mainly for the GNL Quintero, S.A. transaction (Note 1.5).

(2) The variation is due mainly to the retention pending payment and derived from the divestment process in Chile following the sale of GNL Quintero, S.A.

b) Tax returns

Enagás S.A. has been the parent company of the Tax Consolidation Group 493/12 for Corporate Income tax from January 1, 2013, comprising the following subsidiaries at December 31, 2022:

• Enagás Transporte, S.A.U.
• Enagás GTS, S.A.U.
• Enagás Internacional, S.L.U.
• Enagás Financiaciones, S.A.U.
• Enagás Emprende S.L.U.
• Infraestructuras del Gas, S.A.
• Scale Gas Solutions, S.L.
• Efficiency for LNG Applications, S.L.
• Enagás Services Solutions, S.L.
• Sercomgas Gas Solutions, S.L.
• Enagás Holding USA. S.L.U.
• Enagás Infraestructuras de Hidrógeno, S.L.

The Group's remaining companies file individual income tax returns in accordance with the applicable tax laws.

c) Corporate income tax

	2022	2021
Before-tax consolidated accounting results	526,398	499,957
Permanent differences and consolidation adjustments (1)	10,654	(149,061)
Consolidated tax base	537,052	350,896
Tax rate	25 %	25 %
Adjusted result by tax rate (2)	(134,263)	(87,724)
Effect of applying different rates to tax base	(10,672)	805
Tax base	(144,935)	(86,919)
Effect of deductions	6,137	1,027
Other adjustments to corporate income tax (3)	(11,186)	(9,426)
Corporate income tax for the period	(149,984)	(95,318)
Current income tax (4)	(131,2755)	(76,394)
Deferred income tax	7,953	2,597
Adjustments to income tax rate	(26,682)	(21,521)

(1) The permanent differences mainly correspond to the elimination of the results of companies consolidated under the equity method, as well as other consolidation adjustments relating to, among others, the reconciliation of local regulations and IFRS, as well as the impairment losses recognised.

(2) In order to determine income tax, a 25% rate was applied to all Spanish companies, except for those that file tax returns under the special regime of Vizcaya (Enagás Transporte del Norte, S.L) where a 24% rate is applied. For both 2021 and 2022, the tax rates applicable to the foreign companies Enagás Perú, S.A.C.; Enagás Chile S.P.A.; Enagás México, S.A. de C.V. and Enagás USA, L.L.C. were 29.5%, 27%, 30% and 24%, respectively.

(3) "Other Corporate Income Tax Adjustments" includes, among others, the effect of the limitation on the deductibility of dividends (as from January 1, 2021, in accordance with prevailing Spanish legislation, the exemption on dividends and capital gains associated with holdings in both resident and non-resident entities is 95% of the amount thereof).

(4) In 2022, 58,432 thousands of euros were paid (73,562 thousands of euros in 2021) in connection with the amount to be disbursed for settling 2022 Corporate Income Tax, of which 57,955 thousands of euros correspond to the Tax Consolidation Group (72,979 thousands of euros in 2021). 12,288 thousands of euros corresponding to the 2020 corporate income tax of the Tax Consolidation Group have been received. In addition, a one- off impact of 70 million Euro due to the taxation of the gain in Chile after divestment in GNL Quintero.

d) Tax recognised in equity

	2022		2021
	Increases	Decreases	Total	Increases	Decreases	Total
Income and expenses recognised directly in equity
Tax effect on cash flow hedges	—	(11,578)	(11,578)	—	(2,019)	(2,019)
Amounts transferred to the income statement
Tax effect on cash flow hedges	—	(1,732)	(1,732)	—	(4,090)	(4,090)
Total income tax recognised in equity	—	(13,310)	(13,310)	—	(6,109)	(6,109)

e) Periods open for inspection and tax audits

In accordance with prevailing legislation in Spain, tax returns cannot be considered final until they have been inspected by the tax authorities or until the four-year inspection period has elapsed. However, the four-year period can vary in the case of Group companies subject to other fiscal regulations.

During financial year 2021, Enagás S.A. and Enagás Transporte S.A.U. were notified that the Central Economic Administrative Court (hereinafter TEAC) had rejected the claims filed in relation to the assessments signed challenging the Corporate Income Tax for the years 2012 to 2015. During the 2022 financial year, a lawsuit has been filed before the National High Court, against the rulings of the TEAC. In the event that this appeal were ultimately contrary to the interests of the Group, it would result in a disbursement of approximately 11.7 million euros (not including any late payment interest that may be applicable), giving rise to the recognition of a deferred tax asset of 7.5 million euros and a negative effect on net profit /(loss) of approximately 4.2 million euros.

f) Deferred tax assets and liabilities

The appeal is expected to be resolved in more than one year.

Likewise, at the end of 2022, the years 2019 to 2022 are pending review for the applicable taxes, with the exception of income tax, which is pending review for the years 2018 to 2022.

The Directors consider that all taxes mentioned have been duly paid so that even in the event of discrepancies in the interpretation of prevailing tax legislation with respect to the treatment applied to transactions, the resulting potential tax liabilities, if any, would not have a material impact on the accompanying Consolidated Annual Accounts.

	Initial	Recognised on	Recognised in	Translation	Final value
	measurement	profit and loss	equity	differences
Deductible temporary differences
Capital grants and others	872	(107)	—	—	765
Amortisation deduction limit R.D.L. 16/2012 (1)	12,553	(4,184)	—	—	8,369
Provisions for personnel remuneration	5,395	(1,350)	—	21	4,066
Fixed assets provision	34,674	(970)	—	85	33,789
Provisions for litigation and other	19,340	1,730	—	192	21,262
Derivatives	1,471	(383)	—)	103	1,191
Carry-forward tax losses	1,730	—	—	115	1,845
Deductions pending and others (2)	2,512	(830)	—	—	1,682
Total deferred tax assets	78,547	(6,094)	—	322	72,969
Accelerated amortisation (3)	(216,485)	12,058	—	—	(204,427)
Derivatives	(117)		—)	1	(652)
Deferred expenses	(4,857)	2,287	—	—	(2,570)
Other	(16,094)	(581)	2,564	—	(14,111)
Total deferred tax liabilities	(237,553)	13,764	2,564	1	(221,760)
Net value	(159,006)	7,670	2,564	323	(148,791)

(1) Arises from the limitation to tax deductible amortisation with respect to the corporate income tax for the years 2013 and 2014. Said amortisation is recoverable from a tax point of view from 2015 on a straight line basis over 10 years.

(2) In addition, it includes the deduction to be applied from 2015 in accordance with the thirty-seventh transitory provision of Law 27/2014, by virtue of which those contributors for whom limited amortisation was applicable in 2013 and 2014 will have the right to a 5% deduction of the tax base with respect to the amounts included in the taxable income for the corresponding period.

(3) Arising from application of accelerated amortisation of certain assets for tax purposes during the period 2009-2014.

The Enagás Group offset deferred tax assets in the amount of 71,275 thousands of euros from the Tax Consolidation Group in Spain (77,236 thousands of euros in 2021) against deferred tax liabilities in its consolidated statement of financial position in accordance with IAS 12.

	Final value of assets and deferred	Offset of deferred tax assets and
	tax liabilities by nature	liabilities - Tax Group	Final value
Deferred tax assets	78,547	(77,236)	1,311
Deferred tax liabilities	(237,553)	77,236	(160,317)
Net value 2021	(159,006)	—	(159,006)
Deferred tax assets	72,969	(71,275)	1,694
Deferred tax liabilities	(221,720)	71,275	(150,445)
Net value 2022	(148,751)	—	(148,751)

The Enagás Group has unregistered deferred tax assets and liabilities amounting to 33,387 thousands of euros and 35,010 thousands of euros, respectively, at the end of 2022 (27,583 thousands of euros and 41,978 thousands of euros, respectively, at the end of 2021). These correspond mainly to taxable temporary differences associated with investments in companies that are accounted for using the equity method and that meet the requirements established in IFRS to apply the accounting exception.

4.3 Related party transactions and balances

ACCOUNTING POLICIES

• In addition to subsidiaries, associates, and multigroup companies, the Group's "related parties" are considered to be its "key management personnel" (members of the Board of Directors and Senior Managers, along with their close relatives), and the entities over which key management personnel may exercise significant influence or control, considering the definitions indicated in the commercial and reference regulations for listed companies.
• The terms of transactions with related parties are equivalent to those made on an arm's length basis and the corresponding remuneration in kind has been recorded.

	Directors and Senior	Group Personnel,	Other related
Income and expenses	Managers	Companies or Entities	parties	Total (1)
2022
Expenses:
Services received (2)	—	133,085	—	133,085
Other expenses	13,959	—	—	13,959
Total Expenses	13,959	133,085	—	147,044
Income:
Financial income	—	195	—	195
Rendering of services	—	4,039	—	4,039
Total income	—	4,234	—	4,234

Expenses:
Services received	—	60,421	351	60,772
Other expenses	9,701	—	—	9,701
Total Expenses	9,701	60,421	351	70,473
Income:
Financial income	—	893		893
Rendering of services	—	4,097	—	4,097
Other income	—	58	—	58
Total income	—	5,048	—	5,048

(1) No transactions were carried out during 2022 and 2021 with significant shareholders.

(2) Includes the operations that Enagás GTS has carried out with Mibgas.

	Significant	Group Personnel,
Other transactions	shareholders	Companies or Entities	Total
2022
Guarantees for related parties debt (Note 1.9)	-	557,000	557,000
Guarantees and sureties granted - Other (Note 1.9)	-	17,754	17,754
Dividends and other earnings distributed	106,321	-	106,321
2021
Guarantees for related parties debt (Note 1.9)	-	609,205	609,205
Guarantees and sureties granted - Other (Note 1.9)	-	9,263	9,263
Dividends and other earnings distributed	102,193	-	102,193

The detail of current and non-current loans to related parties is as follows:

	Interest rate	Maturity	12.31.2022	12.31.2021
Non-current credits to related parties (*)			20,217	18,392
Planta de Regasificación de Sagunto, S.A.	Eur6m + Spread	June-2025	7,876	16,392
Knutsen Scale Gas, SL	7.00%	Aug.-2027	2,000	2,000
Scale Gas Med Shipping	3.00%	June-2028	7,784	—
Scale Gas Med Shipping	4.9% (revisable in 2024)	June-2028	2,557	—
Current loans to related parties			198	1,925
Planta de Regasificación de Sagunto, S.A.	Eur6m + Spread	June-2025	14	6
Llewo Mobility, S.L (previously "Gas to Move, S.L.")	2.34%	July-2022	4	1,860
Seab Power Ltd.	4.00%	Dec.-2021	—	10
Scale Gas Med Shipping	3.00%	June-2028	50	—
Scale Gas Med Shipping	4.9% (revisable in 2024)	June-2028	81	—
Knutsen Scale Gas, SL	7.00%	Aug.-2027	49	49
Total			20,415	20,317

(*) Unaffected by the expected loss.

4.4 Remuneration for the Board of Directors and Senior Management

ACCOUNTING POLICIES

Share-based payments

• The Group classifies its share-based settlement plan for the Executive Director and senior management according to the manner of settling the transaction:
• With Company shares: Personnel expense is determined based on the fair value of the shares to be delivered at the grant date, taking into account the degree to which the objectives relating to said plan have been fulfilled. This expense is recognised over the stipulated period during which employee services are rendered with a credit to "Other equity instruments" in the accompanying balance sheet.
• In cash: personnel expenses are determined based on the fair value of the liability at the date recognition requirements are met. Personnel expenses are recognised over the stipulated period during which services are rendered in the stipulated period (Note 2.9) and are entered in "Long-term provisions" in the accompanying Balance Sheet, until it is estimated that they will be settled within less than one year, at which time the associated provision is reclassified to the Personnel line under "Trade and other payables" on the liability side of the accompanying Balance Sheet. The liability is subsequently measured at fair value at each balance sheet date, up to and including the settlement date, with changes in fair value recognised in the Income Statement.
• The Enagás Group used the Monte Carlo model to evaluate this programme. The fair value of the equity instruments at the granting date is adjusted to include the market conditions relating to this plan. Likewise, the Company takes into account the fact that the dividends accrued during the plan period are not paid to the beneficiaries as they do not become shareholders of the

Company until the plan has effectively been settled.

SIGNIFICANT ESTIMATES AND JUDGEMENTS

• The Enagás Group estimates fair value of the equity instruments granted on an accrual basis over the corresponding plan period, plus the deferral and loyalty periods of approximately four months for full disbursement. In the 2022 financial year, both the 2019-2021 ILP Plan and the 2022-2024 ILP Plan are considered.
• As for that part of the plans payable in shares, the Enagás Group estimates the fair value of the amount payable in cash on an accrual basis over the plan period (January 1, 2019 to December 31, 2021 for the 2019-2021 ILP and January 1, 2022 to December 31, 2024 for the 2022-2024 ILP), plus the deferral and loyalty periods of approximately four months for full disbursement.
• On September 29, 2022, the National Commission on Markets and Competition (CNMC) approved its supervisory report on the application of the measures to separate the activities of Enagás GTS, S.A.U., with the following requirements:
• The multi-year variable remuneration that may be assigned to Enagás GTS managers must be independent of parameters associated with transmission and other incompatible activities.
• The Executive Director of Enagás GTS and other persons responsible for the management of this company who are beneficiaries of long-term variable remuneration shall not receive shares in the share capital of Enagás as payment for such remuneration.
• In view of the above, it has been necessary to align the 2022-2024 Long-Term Incentive Plan with the requirements of the CNMC, developing two Plans and their respective Regulations, one for the Enagás Group (with the exception of Enagás GTS, S.A.U. senior managers), and another specific Regulation for Enagás GTS so that senior managers belonging to Enagás GTS will receive their variable remuneration in cash instead of receiving it in Enagás S.A. shares.

Remuneration received	Salaries	Per diems	Other items Pension plans		Insurance premiums	Termination benefits
2022
Board of Directors	2,645	2,382	92	—	44	1,630
Senior Management	4,412	—	181	82	37	2,454
Total	7,057	2,382	273	82	81	4,084
2021
Board of Directors	2,382	2,453	191	—	57	—
Senior Management	4,289	—	196	75	58	—
Total	6,671	2,453	387	75	115	—

The remuneration of the members of the Board of Directors for their Board membership and those corresponding to the Chairman, the former Chief Executive Officer and the current Chief Executive Officer for the exercise of their executive functions during the 2022 financial year were approved in detail by the General Shareholders' Meeting held on May 27, 2021 as part of the "Directors' Remuneration Policy for the 2022, 2023 and 2024 financial years", approved as Item 10 of the Agenda and modified by the General Shareholders' Meeting held on March 31, 2022, as Item 8 of the Agenda.

The Group has outsourced its pension commitments with respect to its Senior Managers through a mixed group insurance policy for pension commitments, including benefits in the event of survival, death, and employment disability. The Executive Chairman and the former Chief Executive Officer are part of the group covered by this policy and of the total premium paid for this during the year, 345 thousands of euros corresponded to them. The new Chief Executive Officer (Mr Arturo Gonzalo Aizpiri) does not have a pension commitment instrument, as he does not have an employment relationship with the company, but rather a commercial relationship. The new CEO maintains an assimilated individual savings insurance at a cost of 191,000 euros.

The members of the Senior Management also form part of the group insured under the mixed group insurance policy for pension commitments. The total premium paid for the same during the financial year amounts to 747 thousands of euros.

The two former Executive Directors (Mr Antonio Llardén Carratalá and Mr Marcelino Oreja Arburúa) were beneficiaries of the 2019-2021 Long-Term Incentive Plan approved by the General Shareholders' Meeting on March 29, 2019 under Item 8 of the Agenda. During 2022, the aforementioned incentive was paid out under the terms established by the General Shareholders' Meeting. As a result of this settlement, a total of 50,122 gross shares were delivered to the two former executive directors, which they will not be able to sell within two years.

Members of Senior Management (members of the Management Committee) were equally beneficiaries of the 2019-2021 Long-Term Incentive Plan. In the terms approved at the General Shareholders' Meeting, in the settlement of this incentive in the 2022 financial year, 39,454 gross shares and a cash incentive amount of 243 thousands of euros corresponded to them.

The current Chief Executive Officer is beneficiary of the 2022- 2024 Long-Term Incentive Plan approved by the General Shareholders' Meeting on March 31, 2022 as Item 9 of the Agenda. In said meeting, a total of 96,970 rights relating to shares were assigned to him. These rights do not entail the acquisition of shares for the time being, since the termination of the programme and the right to accrue the final incentive, which depends on the degree of achievement of the programme's objectives, will be generated within thirty days following the approval of the 2024 annual accounts by the General Shareholders' Meeting to be held in 2025.

Members of Senior Management (members of the Executive Committee) are equally beneficiaries of the 2022-2024 Long-Term Incentive Plan. As approved at the General Shareholders' Meeting, the Board has assigned them a total of 145,764 rights relating to shares as well as an incentive in cash amounting to approximately 1,000 thousands of euros. These rights do not entail the acquisition of shares for the time being, since the termination of the programme and the right to accrue the final incentive, which depends on the degree of achievement of the programme's objectives, will be generated within thirty days following the approval of the 2024 annual accounts by the General Shareholders' Meeting to be held in 2025.

The aforementioned remuneration, broken down for each member of the Board of Directors, without taking into account insurance premiums, is as follows:

	2022	2021
Mr Antonio Llardén Carratalá (Executive Chairman) (1)	1,594	1,881
Mr Arturo Gonzalo Aizpiri (Chief Executive Officer) (3) (4) (5)	969	—
Sociedad Estatal de Participaciones Industriales (Proprietary Director) (4)	160	160
Mr José Blanco López (Independent Director) (4)	160	160
Ms Ana Palacio Vallelersundi (Independent Leading Director) (4)	190	190
Mr José Montilla Aguilera (Independent Director) (3) (4)	175	166
Mr Cristóbal José Gallego Castillo (Independent Director) (4)	160	160
Ms Eva Patricia Úrbez Sanz (Independent Director) (4)	160	160
Mr Santiago Ferrer Costa (Proprietary Director) (4)	160	160
Ms Natalia Fabra Portela (Independent Director) (3) (4)	160	85
Ms María Teresa Arcos Sánchez (Independent Director) (3) (4)	170	85
Mr David Sandalow (Independent Director) (3) (4)	114	—
Ms Clara García Fernández-Muro (Independent Director) (3) (4)	113	—
Ms María Teresa Costa Campi (Independent Director) (3) (4)	114	—
Mr Manuel Gabriel González Ramos (Independent Director) (3) (4)	113	—
Mr Ignacio Grangel Vicente (Independent Director) (3) (4)	44	160
Mr Gonzalo Solana González (Independent Director) (3) (4)	44	160
Mr Antonio Hernández Mancha (Independent Director) (3) (4)	44	160
Ms Isabel Tocino Biscarolasaga (Independent Director) (3) (4)	44	168
Mr Marcelino Oreja Arburúa (former Chief Executive Officer) (2) (3)	431	952
Mr Luis García del Río (Independent Director)	—	73
Mr Martí Parellada Sabata (External Director)	—	73
Ms Rosa Rodríguez Díaz (Independent Director)	—	73
Total	5,119	5,026

(1) The remuneration of the Executive Chairman for the exercise of his executive duties during 2022 was that approved in detail by the General Shareholders' Meeting held on May 27, 2021 as part of the "Directors' Remuneration Policy for the 2022, 2023 and 2024 financial years" as approved as Item 10 of the Agenda as amended by the General Shareholders' Meeting held on March 31, 2022 under Item 8 of the Agenda to cover his remuneration as non-executive Chairman as from that date. During the 2022 financial year, the Chairman, both in his position as Executive Chairman and, as of March 31, 2022, in the position of non-executive Chairman, received a fixed remuneration of 700 thousands of euros and a variable remuneration of 731 thousands of euros (associated with the Company's 2021 and 2022 targets). He also received 130 thousands of euros for Board membership and other remuneration in kind amounting to 33 thousands of euros (the changes in remuneration in kind with respect to previous years are exclusively a result of measurement differences without there having been any additional items included in the remuneration). Thus, the combined amounts totalled 1,594 thousands of euros. In addition, he was also the beneficiary of a life insurance policy with a premium of 0 thousands of euros for the year. The Group has outsourced its pension commitments with respect to its Senior Managers through a mixed group insurance policy for pension commitments, including benefits in the event of survival, death, and employment disability. The Executive Chairman is one of the beneficiaries covered by this policy, and of the total premium paid during the year, 321 thousands of euros correspond to the Executive Chairman.

• (2) The remuneration for the former Chief Executive Officer in 2022 was approved in detail by the General Shareholders' Meeting on March 31, 2022 as part of the proposal to modify the "Directors' Remuneration Policy for the 2022, 2023 and 2024 financial years". During the 2022 financial year, he received a fixed remuneration of 73 thousands of euros and a variable remuneration of 335 thousands of euros (associated with the Company's 2021 and 2022 objectives). He also received 18 thousands of euros for Board membership and other remuneration in kind amounting to 5 thousands of euros. Thus, the combined amounts totalled 431 thousands of euros. In addition, he was also the beneficiary of a life insurance policy with a premium of 0 thousands of euros for the year. The former Chief Executive Officer is also beneficiary of the mixed group insurance policy for pension commitments, and the share of the premium corresponding to the Chief Executive Officer for this policy amounted to 24 thousands of euros for the year.
• (3) On February 21, 2022 the Board of Directors co-opted Mr Arturo Gonzalo Aizpiri as Executive Director to fill the vacancy caused by the resignation of the former Chief Executive Officer, Mr Marcelino Oreja Arburúa, on that date. On March 31, 2022, Mr Antonio Hernández Mancha, Mr Gonzalo Solana González, Mr Ignacio Grangel Vicente and Ms Isabel Tocino Biscarolasaga stepped down from their posts, while Mr David Sandalow, Mr Manuel González Ramos, Ms Clara García Fernández-Muro and Ms María Teresa Costa Campi were appointed as new Directors.
• (4) The remuneration for these Directors relating to Board and committee membership was approved in detail by the General Shareholders' Meeting on March 31, 2022 as part of the proposal to modify the "Directors' Remuneration Policy for the 2022, 2023, and 2024 financial years".
• (5) The remuneration of the current Chief Executive Officer for the 2022 financial year has been approved in detail by the General Shareholders' Meeting held on May 27, 2021 as part of the "Directors' Remuneration Policy for the 2022, 2023 and 2024 financial years", approved as Item 10 of the Agenda and modified by the General Shareholders' Meeting held on March 31, 2022, as Item 8 of the Agenda. During 2022, the CEO received fixed remuneration in the amount of 804 thousands of euros; he received 112 thousands of euros for Board membership and other remuneration in kind amounting to 53 thousands of euros (the changes in remuneration in kind with respect to previous years are exclusively a result of measurement differences without there having been any additional items included in the remuneration). Thus, the combined amounts totalled 969 thousands of euros. In addition, he was also the beneficiary of a life insurance policy with a premium of 46 thousands of euros for the year. The Chief Executive Officer is a beneficiary of the 2022-2024 Long-Term Incentive Plan approved at the General Shareholders' Meeting held on March 31, 2022. Item 9 of its Agenda states that the meeting assigned him a total of 96,970 performance shares or rights relating to shares. These rights do not entail the acquisition of shares for the time being, since the right to accrue the final incentive, which depends on the degree of achievement of the programme's targets will be generated within thirty (30) days following the approval of the 2024 annual accounts by the General Shareholders' Meeting to be held in 2025. Also, the CEO maintains an individual savings insurance at a cost of 191 thousands of euros.

Share-based payments

As reported in the Annual Accounts since 2019, on March 29, 2019, the General Shareholders' Meeting of the Parent of the group, Enagás S.A,. approved a Long-Term Incentive Plan ("ILP") aimed at the then Executive Directors and senior management of the Company and its Group, with a view to maximising motivation and loyalty as well as promoting the good results achieved by the Enagás Group, aligning its interests with the long-term value of shareholders. In this regard, and as previously reported, the aforementioned programme has been 50% settled during the first half of 2022.

On March 31, 2022, the Enagás, S.A. General Shareholders' Meeting approved the 2022-2024 Long-Term Incentive Plan (ILP) aimed at the Executive Director, the members of the Executive Committee and the senior management of the Parent Company and its Group. The objective of the Plan is to (i) encourage the sustainable achievement of the objectives of the Company's Strategic Plan, (ii) give the opportunity to share the creation of value with participants, (iii) foster a sense of belonging to the Company and shared destiny, (iv) be competitive, and (v) align with the requirements of institutional investors, proxy advisors, and best Good Corporate Governance practices and, especially, those resulting from the recommendations of the CNMV's new Good Governance Code.

The plan consists of an extraordinary mixed multi-year incentive which will permit the beneficiaries to receive, after a certain period of time, a bonus payable in (i) Enagás, S.A. shares and (ii) cash; provided that certain strategic objectives of the Enagás Group are met.

On September 29, 2022, the National Commission on Markets and Competition (CNMC) approved its supervisory report on the application of the measures to separate the activities of Enagás GTS, S.A.U., with the following requirements:

• The multi-year variable remuneration that may be assigned to Enagás GTS managers must be independent of parameters associated with transmission and other incompatible activities.
• The Executive Director of Enagás GTS and other persons responsible for the management of this company who are beneficiaries of long-term variable remuneration shall not receive shares in the share capital of Enagás as payment for such remuneration.

In view of the above, it has been necessary to align the 2022- 2024 Long-Term Incentive Plan with the requirements of the CNMC, developing two Incentive Plans and their respective Regulations, one for the Enagás Group (with the exception of Enagás GTS, S.A.U. senior managers), and another specific Regulation for Enagás GTS so that senior managers belonging to Enagás GTS will receive their variable remuneration in cash instead of receiving it in Enagás S.A. shares.

With respect to the portion payable in shares, a maximum of 679,907 shares are deliverable, all of which will come from the Company's treasury shares. Furthermore, the beneficiaries of the plan are not guaranteed any minimum value for the assigned shares. The cash part of the Plan is limited to an

estimated payment of approximately 3.3 million euros should all the objectives be fully met.

This plan is aimed at persons who, due to their level of responsibility on their position in the Enagás Group, contribute decisively to achieving the Company's objectives. The Plan initially designated 53 beneficiaries, notwithstanding the possibility that new recruitments due to mobility or professional level changes may include new beneficiaries during the measurement period.

The objectives determined to evaluate the achievement of the Enagás S.A. Long-Term Incentive Plan are as follows:

• Accumulated results corresponding to the Funds for Operations ("FFO") of the Enagás Group. This metric shows the financial soundness and net profit growth, which are the cornerstones of the Strategic Plan. This takes into account both the EBITDA of the regulated business and the dividends received from the subsidiaries that are not controlled by Enagás. It is a benchmark indicator for investors. Fulfilling this objective will satisfy the Company forecasts for the distribution of Group, investment and debt amortisation dividends. It accounts for 20% of the total objectives.
• Accumulated cash flows received from international affiliates and other businesses ("Dividend"). This shows the focus on international growth and a realistic and profitable investment plan as the cornerstones of the Strategic Plan. It measures the profitability of the international business compared with the annual remuneration objective which measures the year's international investment volume. It accounts for 20% of the total objectives.
• Total shareholder return ("TSR"). To ensure appropriate, competitive shareholder remuneration. It takes into account share performance and the dividend policy. This objective comprises two components, each with a relative importance of 12.5% of the total objectives:

a) Absolute TSR: this is measured as the acquisition of a target share price in 2024. The target price has been established by investing estimated share dividends and is based on profitability and market parameters.

b) Relative TSR: this is measured with respect to the Peer Group of fifteen companies.

• The Company's commitment to long-term sustainable value creation ("Sustainability"). The target will have five indicators:
• Decarbonisation:
• Reduction of CO² emissions in line with the decarbonisation pathway (emissions 2024 vs. emissions 2021). It accounts for 6% of the total objectives.
• Investment in renewable gases: 2022-2024 investment associated with the adaptation of infrastructure for the transmission of renewable gases and the development of infrastructure dedicated to the transmission and storage of renewable gases. It accounts for 6% of the total objectives.

• Diversity and inclusion:
• Percentage of female members on the Board of Directors. It accounts for 2% of the total objectives.
• Percentage of women in managerial and pre-managerial positions. It accounts for 3% of the total objectives.
• Percentage of promotions that are women in managerial and pre-managerial positions. It accounts for 3% of the total objectives.
• Digitalisation of the company. The target will consist of 2 indicators:
• Implementation of the Digital Transformation Strategy and improvement of the associated indicators.
• Strengthening the positioning of Enagás' digital assets in the company's strategic areas.

It accounts for 15% of the total objectives (7.5% for each

indicator respectively).

Regarding the measurement period, although it will occur during the period from January 1, 2022 to December 31, 2024, its settlement will take place on the following dates:

• a. The beneficiary will receive 50% of the incentive within thirty (30) days following approval of the 2024 Annual Accounts by the General Shareholders' Meeting. This 50% will apply to the assets part of the incentive as well as the cash part of the incentive;
• b. The beneficiary will receive the remaining 50% of the incentive once a period of one year has elapsed from the first payment date.

In this regard, and since the Enagás S.A. ILP Regulation establishes the obligation for the beneficiaries to continue to provide their services to the Enagás Group until the first payment date in order to receive 50% of the incentive, and until the second payment date in order to receive the remaining 50%, the Enagás Group accrues the estimated fair value of the equity instruments granted taking account both of the target measurement period (January 1, 2022 to December 31, 2024) and the service conditions established for the period required to consolidate the remuneration.

The portion of said plan to be settled in Enagás, S.A. shares is considered a share-based transaction payable in equity instruments in accordance with IFRS 2 and, in keeping with said standard, the fair value of services received, as consideration for the equity instruments granted, is included in the Consolidated Income Statement at December 31, 2022, under "Personnel expenses" in the amount of 1,279 thousands of euros and a credit to "Other equity instruments" in the consolidated balance sheet at December 31, 2022 (2,127 thousands of euros at December 31, 2021).

For the valuation of this programme, the Enagás Group used the Monte-Carlo model, widely used in financial practice for the valuation of options, in order to include the effect of market conditions in the valuation of the equity instruments granted. The fair value of the equity instruments at the granting date is adjusted to include the market conditions relating to this plan. Likewise, the Company takes into account the fact that the dividends accrued during the plan period are not paid to the beneficiaries as they do not become shareholders of the Company until the effective delivery of the Company's shares. The breakdown and fair value of the shares at the granting date of the ILP of the Enagás Group are as follows:

	ILP 2022-
	2024
Total shares at the concession date (1)	679,907
Fair value of the equity instruments at the
granting date (EUR)	20.15
Dividend yield	7.94%
Expected volatility	26.15%
Discount rate	0.48%

(1) This number of shares reflects the maximum number of shares to be delivered under the plan, and includes both the possibility of achieving the maximum degree of fulfilment of objectives established in the plan (125%), as well as the possibility that new hiring, staff mobility, or changes in professional levels, lead to the inclusion of new beneficiaries during the measurement period.

In addition, in respect of the cash incentive, the Enagás Group has recognised the provision of services corresponding to this incentive as a personnel expense amounting to 573 thousands of euros with a credit to "Provisions" under "Non-current liabilities" in the consolidated balance sheet at December 31, 2022, as well as to "Personnel" under "Current Liabilities" in accordance with the payment schedule established in the Plan (50% of which will be paid in 2023) (747 thousands of euros at December 31, 2021). As in the case of the share-based payment plan component, the Enagás Group accrues the estimated fair value of the cash-settled amount over the term of the plan (from January 1, 2022 to December 31, 2024) and the service conditions established for the period of time required for the consolidation of the remuneration.

The objectives set to assess the achievement of the Enagás GTS, S.A.U. Long-Term Incentive Plan are as follows:

• The Company's commitment to long-term sustainable value creation. It accounts for 25% of the total objectives.
• Digitalisation of the Company. It accounts for 30% of the total objectives.
• Improvement of the GTS income statement. It accounts for 25% of the total objectives.
• Security of supply. It accounts for 20% of the total objectives.

As for the measurement period, although it will take place during the period from January 1, 2022 to December 31, 2024, it will be settled on the basis of the payment dates set out in the Regulation.

4.5 Other information concerning the Board of Directors

The information included below as required by Article 229 and subsequent of the Spanish Corporate Enterprises Act was prepared considering that they are companies with similar or complementary activities to those carried out by Enagás, that is, natural gas transmission, regasification, distribution, and commercialisation activities regulated by Law 31/1198 of the Hydrocarbons Sector.

At December 31, 2022 and December 31, 2021, there were no holdings in the share capital of companies with the same, similar or complementary type of activity reported to the Company by the Directors.

Positions held or duties performed by Group Directors at companies whose corporate purpose is the same, similar or complementary disclosed to Enagás, S.A. at December 31, 2022 and 2021, are as follows:

DIRECTOR	COMPANY	POSITIONS
2022
Arturo Gonzalo Aizpiri	Enagás Transporte del Norte, S.L.	Chairman
Arturo Gonzalo Aizpiri	Tallgrass Energy G.P.	Director

DIRECTOR	COMPANY	POSITIONS
2021
Marcelino Oreja Arburúa	Mibgas Derivatives, S.A.	Director
Marcelino Oreja Arburúa	Enagás Emprende, S.L.U.	Joint Director
Marcelino Oreja Arburúa	Enagás Services Solutions, S.L.U	Joint Director
Marcelino Oreja Arburúa	Enagás Transporte del Norte, S.L.	Chairman
Marcelino Oreja Arburúa	Enagás Renovable, S.L.U.	Joint Director
Marcelino Oreja Arburúa	Tallgrass Energy G.P.	Director
Antonio Llardén Carratalá	Enagás GTS, S.A.U.	Representative of the Sole Director of Enagás, S.A.
Antonio Llardén Carratalá	Enagás Transporte, S.A.U.	Representative of the Sole Director of Enagás, S.A.

There are no activities of the same, similar or complementary nature to those carried out by Enagás which are performed by its Board members, on their own behalf or on behalf of third parties, not included in the above section.

At 2022 year-end, neither the members of the Board of Directors of the Company nor any parties related to them, as defined in Article 229 of the Corporate Enterprises Act, had notified the remaining Board members of any conflicts of interest, direct or indirect, with those of the Company.

4.6 Other information

a) Information on the impact and management of climate change

Activities for protection of the environment and biodiversity, energy efficiency, reduction in emissions, and the responsible consumption of resources are essential elements in the Enagás Group's environmental management to mitigate the impact of its activities.

The Enagás Group remains firmly committed to energy transition and has set a target to be carbon neutral by 2040. To achieve this, the following milestones have been set out in the roadmap presented in the Strategic Plan:

• Decarbonisation of infrastructures by defining a plan to replace natural gas turbocompressors with electric compressors; the reduction of methane emissions and the use of biomethane for own consumption instead of fossil fuels.
• Decarbonisation of the gas sector by adapting our infrastructure to transport renewable gases and by promoting hydrogen and biomethane projects that encourage their use through Enagás Renovable.

Management has considered the impact of these measures together with the Risks and Opportunities identified in the context of climate change, which are described in more detail in the "Management of risks and opportunities arising from climate change" section of the Non-Financial Information Statement, both in the preparation of these Consolidated Annual Accounts and in the disclosures in the Management Report.

The main aspects that the Group has considered when incorporating them are described below:

• Impairment of non-financial assets: In the short and medium term (horizon up to 2030) a limited impact is estimated. Revenues for regasification, storage and transportation assets in Spain are calculated on the basis of a regulated remuneration system, which is made up of different terms aimed at remunerating the investment for the indicated useful lives, operating and maintenance costs, and other items associated with improving productivity and efficiency. As of today, the flows considered for the impairment test are calculated on the basis of this stable regulatory framework and are not affected by demand risk. Nor do forecasts include flows from European projects promoting the use of renewable gases. The possible uses of hydrogen arising from these projects for the development and use of new infrastructures as well as the adaptation of existing infrastructures will be taken into account from the definition and approval of the regulatory framework for investment and remuneration, including, if applicable, the utilisation factor to

be applied to existing infrastructures. The Group is monitoring the regulatory developments being undertaken at European level in this respect.

• Property, plant and equipment: With regard to possible new investments derived from the natural gas turbocompressors replacement plan, no significant impact is expected considering that the different replacements will be progressive until 2030 and the acquisition cost is between 10 and 20 million euros for each turbocompressor, depending on the power.
• Provisions and contingencies: Physical risks caused by natural disasters or adverse weather conditions (floods, landslides, etc.) may cause damage to our infrastructures in Spain and in other countries in which Enagás participates. The need for additional provisions for these items or regulatory changes associated with the remuneration of decommissioning costs is reviewed at regular intervals in order to monitor possible changes in the assumptions used.
• Impairment of investments accounted for using the equity method No significant impacts have been identified in the calculation of the recoverable value associated with the risk of a possible fall in demand for natural gas resulting from compliance with the targets set out in the Paris Agreement. As far as non-financial assets are concerned, revenue projections for each of the investments have been taken into account for their infrastructure, most of which correspond to long-term stable contracts with off-takers, concessions, regulated revenues, etc.

Other measures related to the energy transition include: the inclusion of sustainability as an objective in the variable remuneration of all the Group's professionals, the weight of which has increased in recent years; the Enagás Group incorporates environmental criteria in its relationships with suppliers and contractors, as well as in decision-making when awarding contracts for the provision of services and products. As indicated in Note 3.4, the Group has entered into a sustainable credit line with an interest rate linked to the reduction of CO² emissions.

During 2022, environmental actions were carried out in the amount of 8,012 thousands of euros, recognised as investments under assets in the Balance Sheet (3,117 thousands of euros in 2021). The Company also assumed environmental expenses amounting to 20,459 thousands of euros in 2022, recognised under "Other operating expenses" (10,993 thousands of euros in 2021).

The Group has arranged sufficient civil liability insurance to meet any possible contingencies, compensation and other risks of an environmental nature which it might incur.

The Group did not benefit from any tax incentives during 2022 as a consequence of activities relating to the environment.

b) Greenhouse gas emission rights

Some of the Enagás Group's facilities are included within the scope of Law 1/2005 of March 9, which regulates the commercial regime for greenhouse gas emission rights.

Directive 2018/410 of the European Parliament and of the Council of March 14, 2018, reformed the scheme with a view to the 2021-2030 period, dividing it into two periods of free allocation of emission allowances for fixed facilities: 2021-2025 period and 2026-2030 period. The calculation of the allocations subject to public consultation has been carried out by applying the allocation methodology set out in Delegated Regulation (EU) 2019/331.

On July 13, 2021, the Council of Ministers approved the final assignation of free greenhouse gas emission rights to institutions subject to the greenhouse gas emission allowance trading regime for the period 2021-2025, among which certain facilities of the Enagás Group are included.

The rights assigned for 2022 and 2021 were measured at 83.52 euros/right and 33.55 euros/right, respectively, the spot price on the first working day of 2022 and 2021 of SENDECO2, Sistema Europeo de Negociación de CO2, a company engaged in the purchase and sale of emission rights on its own account and in providing technical and administrative advice on industrial facilities subject to the Trade Directive (EU ETS). The rights consumed at the end of the year are taken to income, resulting in additions for the year of 2,650 thousands of euros (1,099 thousands of euros at 2021).

In addition, in 2022, 204,150 emission allowances were acquired for consideration for a total of 16,170 thousands of euros, distributed as follows: 31,500 emission allowances in the amount of 2,840 thousands of euros for emissions in 2021 and 172,650 allowances in the amount of 13,330 thousands of euros for emissions in 2022 (in 2021, 78,000 allowances were acquired for consideration in the amount of 5,609 thousands of euros).

The Enagás Group consumed 283,402 greenhouse gas emission rights during 2022 (168,297 rights during 2021).

During the first quarter of 2022, the Enagás Group presented the verified emissions reports of 2021 by the accredited entity (SGS) to the corresponding Autonomous Communities, which validated the emissions. In the second quarter of 2022, the Enagás Group delivered greenhouse gas emission allowances equivalent to the verified emissions in 2021 for all the facilities referred to.

During 2021 and 2022, the Enagás Group did not engage in any negotiations for future contracts relating to greenhouse gas emission rights, nor were there any contingencies relating to penalties or provisional cautionary measures in the terms established by Law 1/2005.

c) Audit fees

"Other operating expenses" includes the fees for audit and non-audit services provided by the auditor of the Group, Ernst & Young, S.L., or by a company belonging to the same group or related to the auditor, broken down as follows:

		2022	2021
	Services rendered by	Services rendered by	Services provided by
	the accounts auditor	Services provided by other auditors of the the accounts auditor other auditors of the
Categories	and related	Group	and related	Group
Audit services (1)	companies 1,090	253	companies 1,031	316
Other assurance services (2)	336	—	345	—
Total audit and related services	1,426	253	1,376	316
Total professional services (3)	1,426	253	1,376	316

(1) Audit services: This heading includes services rendered for the performance of statutory audits of the Group's annual accounts and the limited review work performed with respect to the Interim and Quarterly Consolidated Financial Statements as well as the Certification of the Internal Control over Financial Reporting (ICFR) System.

(2) Other audit-related assurance services: This heading includes the work relating to the Annual Corporate Governance Report, the review of nonfinancial information included in the Management Report, the agreed-upon procedures report on the ICFR, the Audit Report for the Renewal of the Comfort letter, as well as the issuing of Agreed-Upon Procedures in relation to the regulatory costs information sent to the CNMC on June 30, 2022.

(3) Law 22/2015 on the Audit of Accounts establishes that non-audit services provided by the auditor must be less than 70% of the average fees paid for audit services for three consecutive years. The amount of non-audit services rendered by the accounts auditors (Ernst & Young, S.L.) amounts to 31% of the audit service fees invoiced (25% for the Group).

4.7 Information by segments

ACCOUNTING POLICIES

Basis of segmentation

• Segment reporting is structured based on the Group's various business lines as described in Note 1.1.
  • The Group identifies its operating segments based on internal reports relating to the companies comprising the Group which are regularly reviewed, discussed and evaluated in the decision-making process.

a) Main business segments

Regulated activities - Infrastructure Activity

Gas transmission: Represents the main activity, consisting in the delivery of gas via its transmission network, comprised of primary transmission pipelines (with maximum design pressure equal to or greater than 60 bars) and secondary transmission pipelines (with maximum design pressure ranging from 16 to 60 bars) up to the distribution points, as owner of most of the gas transmission network in Spain.

Regasification: The gas is transported from the producing countries in methane tankers at 160ºC below zero in its liquid state (LNG) and is unloaded at the regasification plants where it is stored in cryogenic tanks. At these facilities, via a physical process which normally makes use of seawater vaporisers, the temperature of the liquefied gas is increased until it is transformed into its gaseous state. The natural gas is injected into the gas pipelines for transmission to the whole peninsula.

Storage of gas: The Enagás Group operates the following underground storage facilities: Serrablo (located between Jaca and Sabiñánigo - Huesca), Gaviota (offshore storage, located close to Bermeo - Vizcaya), and Yela (Guadalajara). Likewise, the Company carries out all the operations necessary for the maintenance and operation of the facilities until the last phase of the decommissioning of the Castor storage facility is completed.

Regulated activities - Activity of the Technical Manager of the System

The Enagás Group continued carrying out its functions as Technical Manager of the System in 2022 in compliance with Royal Decree 6/2000 of June 23 and Royal Decree 949/2001 of August 3, with a view to guaranteeing supply continuity and safety, as well as the correct coordination among the access points, storage, transmission, and distribution points.

Non-regulated activities

Includes all non-regulated activities, as well as transactions related to investments in associates and joint ventures, except those corresponding to BBG, Saggas, MIBGAS and Iniciativas del Gas, S.L.

The above activities can be carried out by Enagás, S.A. itself or through companies with an identical or analogous corporate purpose in which it holds interest, provided they remain within the scope and limitations established by legislation applicable to the hydrocarbons sector. In accordance with said legislation, the activities related to transmission and technical management of the system which are of a regulated nature must be carried out by two subsidiaries entirely owned by Enagás, S.A. (Enagás Transporte, S.A.U. and Enagás GTS, S.A.U., respectively).

The structure of this information is designed as if each business line were an independent business, with its own resources, distributed on the basis of the assets assigned to each line in accordance with an internal system of cost allocation by percentages.

			Technical
			Management of the
INCOME STATEMENT		Infrastructures		System		Other activities		Adjustments (1)		Total Group
	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Operating income	930,360	958,249	29,353	28,918	58,882	61,882	(48,286)	(57,876)	970,309	991,173
· Third parties	930,111	955,018	29,352	26,545	6,383	5,414	-	215	965,846	987,192
· Group	249	3,231	1	2,373	52.499	56,468	(48,286)	(58,091)	4,463	3,981
Provisions for amortisation of fixed assets	(245,967)	(247,540)	(8,732)	(6,468)	(9,608)	(9,020)	185	191	(264,122)	(262,837)
Return on investments accounted for using the equity method	14,457	17,295	132	134	132,231	145,822	-	-	146,820	163,251
Operating profit	405,287	483,351	140	2,687	70,844	97,191	1,969	140	478,240	583,369
Financial income	7,150	1,929	8	263	554,114	481,174	(523,747)	(463,842)	37,525	19,524
Financial expenses	(19,207)	(20,408)	(1,680)	(128)	(86,487)	(91,143)	7,026	8,670	(100,348)	(103,009)
Income tax	(95,533)	(113,767)	439	(866)	(54,814)	19,344	(76)	(29)	(149,984)	(95,318)
Net profit	297,018	350,239	(1,096)	1,956	300,344	506,692	(220,492)	(455,061)	375,774	403,826

(1) "Adjustments" includes the eliminations of inter-company transactions (rendering of services and credits granted).

			Technical
			Management of the
BALANCE	Infrastructures		System		Other activities		Adjustments (1)		Total Group
SHEET	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Total assets	5,105,631	5,515,885	261,696	224,538	7,348,602	8,324,574	(3,317,352)	(4,191,279)	9,398,577	9,873,718
Acquisition of fixed assets	61,941	263,403	9,210	9,222	19,679	30,074	-	—	90,830	302,699
Investments accounted for using the equity method	158,060	148,388	761	613	2,393,763	2,640,683	-	—	2,552,584	2,789,684
Non-current liabilities (2)	487,616	495,348	(434)	(877)	(5,194)	(3,082)	48	(489)	482,036	490,900
- Deferred tax liabilities	157,560	166,471	(712)	(969)	(6,451)	(4,696)	48	(489)	150,445	160,317
- Provisions	294,568	291,457	278	92	1,047	807	-	—	295,893	292,356
- Other non current	35,488	37,420	0	—	210	807	-	—	35,698	38,227
liabilities Current liabilities (2)	503,101	411,465	240,034	208,559	327,474	63,837	(360,375)	(271,071)	710,234	412,790
-Trade and other payables	503,101	411,465	240,034	208,559	327,474	63,837	(36,0375)	(271,071)	710,234	412,790

(1) "Adjustments" includes the eliminations of inter-company transactions (rendering of services and credit granted) as well as the elimination of Investments-Shareholders equity.

(2) Financial liabilities are not included.

b) Segments by geographical information

The majority of companies in the Enagás Group operating outside Europe are consolidated under the equity method, with the corresponding expenses and income thus recognised

under "Profit/(loss) from investments consolidated under the equity method" in the Consolidated Income Statement. In view of this, the information relating to geographical markets is based on net revenue.

The distribution of consolidated results for 2022 and 2021, broken down by geographical markets, is as follows:

North America includes the impairment recorded related to TGE (Note 1.6).

4.8 Stocks

As established in Order IET/2736/2015 of December 17: "From October 1, 2016, the quantity of working gas is zero." At December 31, 2015, the Enagás Group, as Technical Manager of the System, maintained control of approximately 755 GWh of working gas necessary for enabling operation of the gas system as established in the fifth additional provision to Order ITC/3863/2007 of December 28. This gas is not reflected in the financial statements as it is gas available for the System and therefore not owned by the Enagás Group.

4.9 Subsequent events

On January 26, 2023, the Enagás Group, through Enagás Internacional S.L.U., agreed with the Swiss company Axpo to purchase 4% of Trans Adriatic Pipeline (TAP) for 168 million euros, in addition to the 16% previously held. After the closing of the transaction, TAP's shareholding will be 20% owned by Enagás, the same percentage as the British BP, the Azeri SOCAR, the Italian Snam and the Belgian Fluxys. The purchase transaction is subject to compliance with the conditions precedent for this type of operation.

On January 25, 2023, Enagás, S.A. signed with 12 financial institutions an extension of the maturity of its syndicated credit line of 1,550 million euros until 2028, maintaining its commitment to link economic conditions to compliance with environmental indicators, in line with the objective of achieving carbon neutrality by 2040, in accordance with the strategic plan presented by the company in July 2022.

On February 3, 2023, the CNMC notified the Resolution establishing a special temporary economic regime for the El Musel regasification plant.

Since January 1, 2023, until the date on which these Consolidated Annual Accounts were drawn up, no events have occurred that would significantly affect the profit (loss) of the Group or its equity, in addition to those described in these Annual Accounts.

5. Explanation added for translation to English

• These Consolidated Annual Accounts are a translation of financial statements originally issued in Spanish and prepared in accordance with International Financial Reporting Standards as adopted by the EU, in conformity with Regulation (EC) No. 1606/ 2002. In the event of a discrepancy, the Spanish-language version prevails.
• These Consolidated Annual Accounts are presented on the basis of the regulatory financial reporting framework applicable to Enagás Group (Note 1.2). Certain accounting practices applied by the Group that conform to that regulatory framework may not conform to other generally accepted accounting principles and rules.

Appendix I. Subsidiaries at December 31, 2022

			% stake and Voting	Amount of Share
			Rights controlled by	Capital in functional
Subsidiaries	Country	Activity	the Enagás Group	currency
Enagás Transporte, S.A.U.	Spain	Regasification, storage, and transmission of gas	100.00%	532,089,120 euros
Enagás GTS, S.A.U.	Spain	Technical Management of the Gas System	100.00%	5,914,451 euros
Enagás Internacional, S.L.U.	Spain	Holding	100.00%	196,258,077 dollars
Enagás Financiaciones, S.A.U.	Spain	Financial management	100.00%	890,000 euros
Enagás Transporte del Norte,	Spain	Gas transmission	90.00%	38,501,045 euros
S.L. Enagás Chile, S.P.A.	Chile	Holding	100.00%	383,531,442 dollars
Enagás México, S.A.	Mexico	Holding	100.00%	4,473,133 dollars
Enagás Perú, S.A.C.	Peru	Holding	100.00%	4,794,417 dollars
Enagás USA, LLC	USA	Holding	100.00%	253,412,959 dollars
Enagás Intern. USA, S.L.U.	Spain	Holding	100.00%	121,530,445 euros
Infraestructuras de Gas, S.A.	Spain	Holding	85.00%	340,000 euros
Enagás Emprende, S.L.U.	Spain	Holding	100.00%	22,303,953 euros
Efficiency for LNG Applications,	Spain	Development of industrial projects and	98.27%	416,556 euros
S.L.		activities relating to LNG terminals.
Scale Gas Solutions, S.L.	Spain	Development and implementation of facilities for the supply of natural gas as fuel for vehicles, including its design, construction and maintenance.	100.00%	5,944,944 euros
Enagás Services Solutions, S.L.	Spain	Holding	100.00%	7,217,560 euros
Sercomgas Gas Solutions, S.L.	Spain	Provision of commercial services for the	84.00%	88,536.00 euros
		purpose of improving the daily operational
		management of gas shippers.
Enagás Infraestructuras de	Spain	Design, construction, operation and	100%	2,838,300 euros
Hidrógeno, S.L.		maintenance of hydrogen and other gas
		production facilities

Appendix II. Joint ventures and associates

				% of voting rights	Thousands of euros (1)		Net carrying amount in functional currency
				controlled by the	Net carrying	Dividends	Thousands of	Thousands of
Company	Country	Activity	%	Enagás Group	amount	received	euros	dollars
Joint ventures
Bahía de Bizkaia Gas, S.L.	Spain	Storage and regasification	50.00%	50.00%	54,884	7,000	54,884	—
Subgrupo Altamira LNG, C.V. (3)	Netherlands	Holding/Regasification	40.00%	40.00%	46,878	20,626	—	52,423
	/Mexico
Morelos EPC, S.A.P.I. de C.V.	Mexico	Engineering and construction	50.00%	50.00%		—	—
Tecgas, Inc.	Canada	Holding	51.00%	51.00%	1,251	—	—	1,344
EC Soto la Marina O&M SAPI de CV	Mexico	Operation and maintenance	50.00%	50.00%	—	—	—	—
Iniciativas de Gas, S.L. (4)	Spain	Holding	60.00%	60.00%	46,648	—	46,648	—
Planta de Regasificación de Sagunto,	Spain	Storage and regasification	72.50%	72.50%	1,500	2,538	1,500	—
S.A. (4)
Grupo Senfluga Energy	Greece	Holding	18.00%	18.00%	29,794	3,654	34,157	—
Infrastructure, S.A. Axent Inf. Tel., S.A.	Spain	Construction, maintenance and	49.00%	49.00%	13,923	—	13,923	—
		operation of a telecommunications
		network.
Vira Gas Imaging, S,L.	Spain	Development and commercialisation	40.00%	40.00%	—	—	—	—
		of technological activities
Sunrgyze, S.L. (formerly Sun2Hy, S.L.)	Spain	Development and scale-up of	50.00%	50.00%	—	—	—	—
		artificial photosynthesis technology
		for hydrogen production
Scale Gas Med Shipping, S.L.U.	Spain	Construction, design,	50.00%	50.00%	2	—	2	—
		commissioning, start-up and O&M
		of energy structures
Green Ports Project, S.L.	Spain	Small scale in ports	50.00%	50.00%	30	—	30	—
Llewo Mobility, S.L (previously "Gas to Move, S.L.")	Spain	Development of industrial projects related to LNG	68.42%	68.42%	—	—	—	—
H2Greem Global Solutions, S.L.	Spain	Development of industrial projects	34%	34%	216	—	216	—
		and activities to promote hydrogen
		production and transmission
		infrastructures.
Knutsen Scale Gas, SL	Spain	Bunkering	50.00%	50.00%	502	—	502	—
Associates
Transportadora de gas del Perú, S.A.	Peru	Gas transmission	28.94%	28.94%	441,166	72,591	—	577,257
Tallgrass Energy LP.	USA	Oil & Gas transmission and	28.42%	28.42%	1,335,898	21,506	—	1,491,433
		extraction
Trans Adriatic Pipeline, A.G. (3)	Switzerland	Gas transmission	16.00%	16.00%	174,417	—	200,440	—
	(2) and (3)
Mibgas Derivatives, S.A.	Spain	Operation of the (organised) gas	28.34%	28.34%	268	—	268	—
		market
Seab Power Ltd.	United	Development of systems to	10,39%	10,39%	—	—	—	—
	Kingdom	transform waste into energy
Enagás Renovable, S.L. (Subgrupo)	Spain	Development of projects to promote	60%	60%	8,717	—	8,717	—
		the role of renewable gases in the
		energy transition.
Alantra Energy Transition, S.A.	Spain	Promotion of projects in the field of	25%	25%	185	175	185	—
	energy transition
Solatom CSP, S.L.	Spain	Use of heat as an energy source	8,48%	8,48%	317	—	317	—
Mibgas, S.A.	Spain	Operation of the (organised) gas	13.34%	13.34%	417	—	417	—
		market
Trovant Technology, S.L.	Spain	Upgrading from biogas to	12.47%	12.47%	487	—	487	—
		biomethane for bioenergy
		production

(1) For those companies whose local currency is different to that of the Group, the euro (Note 1.3), the "net carrying amount" of the financial investment is shown in historic euros and includes the capitalised acquisition costs.

The euros corresponding to "dividends received" are translated at the exchange rate corresponding to the transaction date.

(2) This company has three permanent establishments in Greece, Italy, and Albania.

(3) Both companies are owned together with other international industrial partners. Their activity consists in the development and operation of infrastructure projects, such as the regasification plant already operational in Altamira and the TAP project (declared Project of Common Interest by the European Union).

(4) Iniciativas de Gas, S.L. and Infraestructuras de Gas, S.L. each hold a 50% stake in Planta de Regasificación de Sagunto Gas, S.A. Both companies are in turn affiliates of the Enagás Group, which holds a 60% stake and an 85% stake in them, respectively. Thus, the indirect interest held by the Enagás Group in Planta de Regasificación de Sagunto Gas, S.A. amounts to 72.5%. The dividend distribution is carried out by Planta de Regasificación de Sagunto Gas, S.A.

Balance sheet figures 2022

					Thousands of euros
	Figures for affiliate (1)(2)
		Assets			Equity		Liabilities
	Long
	term	Short-term					Long-term		Short-term
		Cash and	Remaining
		cash	short-term	Other	Remaining	Financial	Remaining	Financial	Remaining
Company		equivalents	assets	results	equity	liabilities	liabilities	liabilities	liabilities
Bahía de Bizkaia Gas,
S.L.	162,411	48,715	17,480	1,225	60,162	90,260	26,417	21,611	28,932
Subgrupo Altamira
LNG, C.V.	294,205	12,512	31,106	-	222,571	25,597	77,960	1,740	9,955
EC Soto La Marina
SAPI de CV	64,065	8,878	2,059	0	20,323	46,824	865	4,100	2,889
Transportadora de gas
del Perú, S.A.	2,623,680	216,419	99,686	-	1,589,308	795,713	416,774	48,770	89,219
Trans Adriatic
Pipeline, A.G.	5.141,493	477,697	412,655	336,452	1,962,614	3,039,701	146,258	6,304	540,517
Tecgas, Inc.	N.A.	N.A	N.A	N.A	N.A	N.A	N.A	N.A	N.A
Iniciativas de Gas, S.L.	843	1,004	—	—	1,841	—	—	—	7
Planta de
Regasificación de
Sagunto, S.A.	304,689	48,661	42,453	(330)	174,874	112,344	43,104	65,044	768
Mibgas, S.A.	413	507,753	5,269	—	4,379	—	451	508,557	48
Llewo Mobility, S.L
(previously "Gas to
Move, S.L.")	5,455	247	608	—	(692)	766	—	5,245	990
Axent Inf. Tel., S.A.	52,578	1,143	2,423	—	21,962	1,594	22,815	1,799	7,974
Senfluga Energy
Infrastructure S.A.	9032,785	208,219	149,630	15,604	55,4874	415,432	19,481	244,419	11,824
Group
Tallgrass Energy LP
Group	8,940,935	27,051	610,927	—	4,672,851	4,184,085	62,343	—	659,635
SEAB Power Ltd.	1,649	17	568	—	1,646	277	—	241	70
Mibgas Derivatives,
S.A.	1	562	9,992	—	570	—	1	60	9,924
Solatom CSP	165	212	122	—	112	349	3	35	—
Knutsen Scale Gas	N.A.	N.A	N.A	N.A	N.A	N.A	N.A	N.A	N.A
Sunrgyze, S.L.
(formerly Sun2Hy, S.L.)	8,228	1,326	476	—	9,714	—	—	301	15
Scale Gas Med
Shipping, S.L.	N.A.	N.A	N.A	N.A	N.A	N.A	N.A	N.A	N.A
Green Ports Projects,
S.L.	N.A.	N.A	N.A	N.A	N.A	N.A	N.A	N.A	N.A
Enagás Renovable S.
L. (Subgroup)	62,267	3,050	2,337	(7)	65,713	—	11	—	1,937

(1) Data provided as though companies were 100% invested, in accordance with IFRS.

Alantra Enagás Energy

Trovant Technology,

(2) For those companies whose functional currency is different to the Group's functional currency, the euro (Note 1.3), the balance sheet figures were translated at the exchange rate prevailing at year-end.

Transition, S.A. 9 78 2,696 — 1,868 — — 111 804

S.L. — 1,464 52 — 1,464 — — 2 14

Income Statement figures 2022

	Thousands of euros
				Figures for affiliate (1)(2)
				Income statement
				Interest		Other expenses and	Net profit
Company	Revenue		Amortisation Interest income	expense	Income tax	income	/(loss)
Bahía de Bizkaia Gas, S.L.	58,866	(14,874)	156	(7,275)	(3,239)	(24,453)	9,181
Subgrupo Altamira LNG, C.V.	52,179	(1,315)	56	(3,650)	(8,074)	(15,449)	23,747
EC Soto La Marina S.A.P.I. de C.V.	13,100	(5,066)	377	(3,262)	423	(2,889)	2,683
Transportadora de gas del Perú, S.A.	704,742	(146,620)	2,289	(56,729)	(105,276)	(208,748)	189,658
Trans Adriatic Pipeline, A.G.	874,323	(193,888)	5,006	(111,026)	(60,971)	(221,298)	292,146
Tecgas, Inc.	N.A	N.A	N.A	N.A	N.A	N.A	N.A
Senfluga Energy Infrastructure S.A. Group	278,776	(54,834)	95	(15,611)	(26,024)	(97,745)	84,657
Tallgrass Energy LP Group	664,952	(179,158)	21,735	(261,472)	7,295	(222,902)	30,450
Iniciativas de Gas, S.L.	1,750	—	—	—	(13)	(80)	1,657
Planta de Regasificación de Sagunto, S.A.	81,686	(27,585)	—	(7,283)	(6,632)	(27,213)	12,973
Mibgas, S.A.	5,385	—	183	—	(262)	(4,598)	708
(Llewo Mobility, S.L (previously "Gas to Move Transport Solutions, S.L.")	9,677	(718)	—	(95)	1,054	(13,081)	(3,163)
Vira Gas Imaging, S.L.	394	(42)	—	—	—	(318)	34
Axent Inf. Tel., S.A.	4,968	(2,538)	—	(569)	—	(3,916)	(2,055)
SEAB Power Ltd.	577	—	—	—	—	(997)	(420)
Solatom CSP, S.L.	70	(28)				(213)	(171)
Green Ports Project, S.L.	N.A.	N.A	N.A	N.A	N.A	N.A	N.A
Mibgas Derivatives	407	—	24	—	(24)	(209)	198
Knutsen Scale Gas, S.L.	N.A	N.A	N.A	N.A	N.A	N.A	N.A
Scale Gas Med Shipping, S.L.U.	N.A	N.A	N.A	N.A	N.A	N.A	N.A
Sunrgyze, S.L. (formerly Sun2Hy, S.L.)	—	(777)	—	(5)	284	(717)	(1,215)
Enagás Renovable S. L. (Subgroup)	907	—	202	(102)	119	(14,018)	(12,892)
Alantra Enagás Energy Transition, S.A.	3,261	(1)	—	—	(376)	(1,529)	1,355
Trovant Technology, S.L.	—	(6)	—	—	—	(235)	(241)

(1) Data provided as though companies were 100% invested, in accordance with IFRS.

(2) For those companies whose local currency is different to the Group's functional currency, the euro (Note 1.3), the income statement figures were translated at the average exchange rate for the reporting period.

(1) Data provided as though companies were 100% invested, in accordance with IFRS.

(2) For those companies whose functional currency is different to the Group's functional currency, the euro (Note 1.3), the balance sheet figures were

translated at the exchange rate prevailing at year-end.

Income Statement figures 2021

Thousands of euros

				Figures for affiliate (1)(2)
	Income statement
Company	Revenue		Amortisation Interest income	Interest expense	Income tax	Other expenses and income	Net profit /(loss)
Bahía de Bizkaia Gas, S.L.	61,668	(15,307)	69	(6,522)	(4,568)	(17,414)	17,926
Subgrupo Altamira LNG, C.V.	51,817	(10,518)	5,355	(417)	(36,054)	19,327	29,511
Gasoducto de Morelos, S.A.P.I. de C.V.	10,835	(11,580)	24	(8,837)	-	20,392	10,835
EC Soto La Marina S.A.P.I. de C.V.	11,668	(4,485)	21	(1,487)	(402)	(3,705)	1,611
Transportadora de gas del Perú, S.A.	570,584	(147,303)	438	(51,066)	(64,474)	(159,533)	148,647
Trans Adriatic Pipeline, A.G.	761,870	(195,048)	162	(110,689)	(49,330)	(121,965)	285,000
Compañía Operadora de Gas del Amazonas, S.A.C.	108,033	(4,079)	14	(557)	(939)	(100,755)	1,716
Tecgas, Inc.	N.D.	N.D.	N.D.	N.D.	N.D.	N.D.	N.D.
Morelos O&M, S.A.P.I de C.V.	1,485	(27)	-	-	1	(1,399)	60
GNL Quintero, S.A.	199,373	(52,380)	608	(42,846)	(15,425)	(36,017)	53,314
Senfluga Energy Infrastructure S.A. Group	203,069	(52,599)	68	(6,788)	(20,725)	(56,202)	66,823
Tallgrass Energy LP Group	591,212	(181,789)	16,474	(242,425)	11,802	(153,232)	42,042
Iniciativas de Gas, S.L.	-	-	-	-	-	(72)	(72)
Planta de Regasificación de Sagunto, S.A.	72,781	(29,492)	254	(8,056)	(4,243)	(19,743)	11,501
Mibgas, S.A.	5,129	(10)	-	-	(22)	(4,876)	221
Gas to Move Transport Solutions, S.L.	11,456	(920)	-	(135)	879	(13,918)	(2,638)
Vira Gas Imaging, S.L.	232	(12)	-	-	-	(270)	(50)
Axent Inf. Tel., S.A.	2,884	(969)	-	(76)	-	(3,018)	(1,179)
SEAB Power Ltd.	709	165	-	23	-	(1,022)	(126)
Solatom CSP, S.L.	122	(26)	-	-	-	(448)	(352)
Green Ports Project, S.L.	-	-	-	-	-	(1)	(1)
Mibgas Derivatives	401	-	-	-	-	(270)	131
UNUE Gas Renovable, S.L.	294	(29)	-	(5)	1	(266)	(4)
Knutsen Scale Gas, S.L.	-	-	-	(4)	-	(91)	(95)
Bioenergía Els Vents, S.L.	-	-	-	-	1	(2)	(2)
Bioenergía Gas Renovable IV, S.L.	-	-	-	-	1	(2)	(2)
Bioenergía Gas Renovable V, S.L.	-	-	-	-	-	(1)	(1)
Sun2Hy, S.L.	-	-	-	-	31	(123)	(92)
The Green Vector, S.L.	-	-	-	-	1	(3)	(2)

(1) Data provided as though companies were 100% invested, in accordance with IFRS.

(2) For those companies whose functional currency is different to the Group's functional currency, the euro (Note 1.3), the income statement figures were translated at the average exchange rate for the year.

Appendix III. Regulatory framework

a) Adequacy of powers between the Government and the Regulator: Second regulatory period (2021-2026)

In 2019, the basis for determining the framework of the gas system applicable during the 2021-2026 regulatory period were established. The process began with the publication in the Official State Gazette (BOE) of Royal Decree-Law 1/2019 on urgent measures to adapt the CNMC's powers, where the basic legislation of the electricity and gas sectors is modified in order to perform a distribution of powers between the Government and the CNMC to adapt them to the requirements of EU law.

In this distribution of powers, the CNMC receives the transfer of all powers related to:

• Toll and remuneration methodologies in transmission, distribution and LNG plants, as well as the establishment of their values.
• Remuneration parameters and asset bases.
• Methodology and remuneration of the Technical Manager of the System, i.e., Enagás GTS, S.A.U.
• Methodology on the conditions of access and connection to gas infrastructures.
• Approving the Technical Management of the Gas System Regulations (NGTS) in relation to the balance system, programming, international connections and shrinkage.

On the other hand, the Ministry for the Ecological Transition (MITECO) will be in charge of:

• Establishing energy policy guidelines (Order TEC/406/2019).
• Methodology for calculating royalties and remuneration of basic services for access to Underground Storage Facilities and approval of their values.
• Determining the last resort tariffs (TUR).
• Structure and methodology of the charges for costs of facilities not associated with the use of these facilities (CNMC rate, deficit annuities, regulated remuneration of Mibgas, S.A., etc.).
• Approving the Technical Management of the Gas System Regulations related to security of supply, emergency, gas quality and input/output control.

In order to guarantee the proper functioning of both institutions, a Cooperation Committee is created between the Ministry and the CNMC, a transitional regime is established to ensure an orderly transfer of functions and to avoid affecting the legal security of the parties operating in the sectors, and

the bases for the next gas and electricity remuneration period are developed.

The CNMC, within the scope of its regulatory powers, must take into account the strategic priorities established by the Government, which are embodied in energy policy guidelines adopted by order of the head of MITECO.

In these energy policy guidelines the government:

• Is committed to regasification plants, promoting their competitiveness with respect to other international plants, favouring international connections and committing to a deep and liquid LNG market.
• Is positioned in favour of biomethane and other renewable gases, with special mention of the injection of hydrogen generated from renewable electricity.
• Encourages the extension of the operation of those facilities that have exceeded their useful life in terms of remuneration.
• Discourages investment in new infrastructure except for assets that are necessary to ensure the supply of the whole system or that are strategic for meeting energy policy objectives.

As regards remuneration, the CNMC published the following circulars to update, for the second regulatory period, the current remuneration model, as well as the system of access tolls for each of the services provided by the facility, taking into account the infrastructures involved in the provision of each service:

• Circular 2/2019, of November 12, establishing the methodology for calculating the financial remuneration rate for power transmission and distribution, and natural gas regasification, transmission and distribution.
• Circular 9/2019, of December 12, establishing the methodology for the remuneration of regulated natural gas transmission and regasification activities.
• Circular 6/2020 of July 22, establishing the methodology for the calculation of tolls for the regasification, transmission and distribution of natural gas.
• Circular 8/2020, of December 2, establishing the unitary benchmark values for investment and operation and maintenance for the 2021-2026 regulatory period and the minimum requirements for audits of investments and costs in natural gas transmission facilities and liquefied natural gas plants.

In the operational field, it published the following circulars with the aim of encouraging and facilitating competition, promoting greater use of gas infrastructure, harmonising, simplifying and establishing a transparent and competitive mechanism for the allocation and use of capacity, making the operations of agents more flexible and resolving situations of congestion at regasification plants, as well as contemplating measures to

regularise the physical imbalance of LNG at regasification plants and in underground storage:

• Circular 8/2019, of December 12, establishing the access and capacity allocation mechanisms to be applied in the natural gas system.
• Circular 2/2020, of January 9, setting out the natural gas balance rules.
• Circular 7/2021 of July 28, of the National Commission on Markets and Competition, establishing the methodology for the calculation, supervision, valuation and settlement of shrinkage in the gas system.
• Circular 9/2021, of December 15, of the National Commission on Markets and Competition, amending Circular 8/2019, of December 12, establishing the methodology and conditions for access and capacity allocation in the natural gas system.

b) Remuneration of LNG transmission, regasification and storage activities in the second regulatory period 2021-2026

In accordance with the aforementioned adequacy of powers between the Government and the Regulator, the CNMC published, at the end of 2019, Circular 9/2019 establishing the remuneration system for transmission and regasification activities. The methodology opts to maintain the principles established in the current regulatory framework, defined in Law 18/2014, adapting them to current gas market conditions, while establishing an orderly and progressive transition between the two remuneration frameworks.

The review of the remuneration framework established by this Circular was completed with the approval by the CNMC, on December 2, 2020, of Circular 8/2020, establishing the unit reference values for investment and operation and maintenance for the period 2021-2026, as well as the minimum criteria for audits of investments and costs at natural gas transmission facilities and LNG plants.

The basic principles maintained in the new remuneration framework are as follows:

• Establish remuneration appropriate to a low-risk activity.
• Ensure the recovery of the investments made by the titleholders during their useful life.
• Allow a reasonable return on financial resources invested.
• Determine the operating costs remuneration system in a way that encourages effective management and improvement of productivity that should be partly passed on to users and consumers.
• Contribute to the economic and financial sustainability of the natural gas system.

Consider the costs necessary for performing the activity by an efficient and well-managed company in accordance with the principle of performing the activity at the lowest cost to the gas system with homogeneous criteria throughout Spain, notwithstanding the specific arrangement provided for island and extra-peninsular territories.

From a methodological perspective, the following aspects are maintained in the new framework:

• The regulatory periods run consecutively for a period of six years.
• The remuneration parameters for the regulated activities are set for the entire 6-year regulatory period, taking into account the cyclical nature of the economy, gas demand, the development of costs, efficiency improvements, the economic and financial balance of the system, and the reasonable profitability of these activities.
• Remuneration continues to be calculated individually for each facility.
• The net value of the asset is maintained as the basis for calculating the return on investment.
• Any procedure for automatic adjustment of values and remuneration parameters according to price indices is removed.
• Depreciation continues to be calculated on a straight-line basis and the useful lives of the assets are maintained.
• The operating and maintenance costs of facilities that are individually remunerated continue to be calculated on the basis of the unit costs in force established in Circular 8/2020 for the facilities to which these unit reference values apply and on the basis of the audited costs for the individual facilities.

One of the most significant novelties, although it has practically no material impact, is that in order to allow the temporary coordination of remuneration with the methodology of tolls and royalties, in accordance with the European Commission Regulation the remuneration is now calculated per gas year. The gas year for which the remuneration of the facilities is determined runs from October 1 of year "n-1" to September 30 of year "n", both inclusive, with the exception of 2021 which started on January 1, 2021.

The remuneration accrued in one year for gas by each company that owns natural gas transmission facilities and liquefied natural gas plants will be the result of adding up the following remuneration components for each of its facilities:

• Return on investment (RINV) which aims to recover the investments made and to obtain a reasonable return.
• Remuneration for operation and maintenance of the facility (RO&M).
• Productivity and efficiency remuneration adjustments (ARPE).
• Remuneration for facilities in special administrative situations (RSAE).

Return on investment in facilities with cross-border impacts resulting from the application of Article 12 of Regulation (EU) No. 347/2013, (RIIT).

Each of these components is presented below:

b.1) Return on investment (RINV).

It is determined for each of the assets in production entitled to individual remuneration and is intended to provide return on investment costs incurred. The return on investment includes remuneration for depreciation and financial remuneration for assets and minimum fill level, which remain practically the same as in the current framework, and, if applicable, remuneration based on the gas transported.

Remuneration for investment costs is comprised of the following:

Value of assets recognised. The values recognised in the current framework for assets brought into operation are maintained. For facilities commissioned before 2002, the corresponding amounts are calculated based on the carrying amounts of the assets once the accounting restatement of 1996 is taken into account (Royal Decree-Law 7/1996), less grants received for the purpose of financing said assets, applying a restatement coefficient comprised of the adjusted average Consumer Price Index (CPI) and Industrial Price Index (IPRI) to this difference.

For the new facilities commissioned from 2002, the standard value of each investment as established by the regulator is used, while for those which require expansion, the real cost is used.

Transmission facilities commissioned from 2008 are measured by taking the average of the standard value and real cost.

Regasification facilities commissioned from 2006 are measured at real cost plus 50% of the difference between the standard value and said real cost, up to a maximum of the standard value.

The new framework does present a novelty for the regasification facilities to be launched from 2020 as they will be valued as transmission facilities. That is, at the average cost between the standard value and the actual cost, without limiting it to the standard cost.

The resulting value is reduced by the amounts transferred and financed by third parties, 90% of the amounts obtained from the sale of dismantled equipment and the subsidies received (90% if they come from the European Union).

Another aspect of the new framework, applicable to transmission and regasification facilities, is that the unit investment reference values in force at the time of obtaining authorisation for the facilities will be applicable to new facilities that come into operation from 2021 onwards. Previously, these were the unit values in force when the commissioning certificate was obtained.

Remuneration for amortisation of system assets (A). The value of the resulting amount recognised for the investment is amortised applying a rate corresponding to its useful life, obtaining the related income in this manner.

In the new framework, the useful lives of the assets in the current framework are maintained, except for the secondary pumps of the regasification plants (which go from 20 to 10 years). In addition, for new facilities, the remuneration for amortisation starts to accrue from the date of commissioning of the facility. This is different from the current framework, as the accrual for transmission facilities started on January 1 of the year following the commissioning. The remuneration is accrued until the facility is depreciated.

Depreciation is calculated for the facilities of the trunk network and regasification plants commissioned prior to January 1, 2021 and for primary transmission pipelines of local influence with administrative authorisation prior to January 1, 2021.

Financial remuneration of the amount invested (FR). It is calculated by applying a financial remuneration rate to the net values of the assets without restatement and accrues until the net value is zero.

For the second regulatory period, the remuneration rate on the transmission and regasification assets is no longer indexed to the government bonds, and it is calculated on the basis of the average WACC capital cost of the transmission and regasification activity. For the second period (2021-2026), the rate was established in Circular 2/2019 and was set at 5.44%.

The financial remuneration is calculated for facilities with individualised remuneration with the right to remuneration by amortisation and begins to accrue from the same date as the latter.

• Financial remuneration for heel gas and minimum fill (RFNMLL). The calculation method of the current framework is maintained. The remuneration is calculated by applying the financial remuneration rate to the purchase value of the gas and has no amortisation. It starts to accrue from the later of the date of purchase of the gas and the date of commissioning of the facility until the closure of the facility or the delivery of the gas to the GTS for use as operating gas.
• Remuneration based on the gas transmitted or processed (RGV). This remuneration is applied to the primary transmission facilities in the local area of influence awarded by competition and to new regasification plants and primary gas pipelines in the area of influence directly authorised after December 31, 2020. The annual remuneration is that which results from multiplying a unit remuneration coefficient by the gas transmitted or processed annually and is accrued from the date of commissioning. In no case may the RGV remuneration, in each gas year, be greater than the amounts invoiced for tolls and royalties.

For facilities awarded by competition, the unit remuneration (ROC) is that offered by the company awarded the contract, while for facilities awarded directly (RUM), the unit remuneration is the average remuneration calculated as the sum of the amortisation and financial remuneration during

the useful life of the project divided by the sum of the annual gas volumes forecasted by the owner of the facility when the economic justification of the project was presented for award. For these facilities, given that the remuneration risk is greater than for the trunk facilities, the financial remuneration rate is increased by a differential provisionally set at 0.39%, resulting in a rate of 5.83%.

The RGV remuneration is accrued until the present value of the sum of the recognised annual remuneration, discounted at the previous remuneration rate, is equal to the present value of the recognised investment.

b.2) Remuneration for operation and maintenance of the facilities (RO&M).

For transmission and regasification assets to which the standard unit costs apply, the remuneration for operation and maintenance is calculated by applying the reference unit costs of operation and maintenance in force, regardless of the date of commissioning of the fixed asset (COMVU).

For the second regulatory period 2021-2026, the standard unit costs are those published in Circular 8/2020.

For one-off assets, costs are calculated on the basis of actual audited costs (COMsing).

Apart from the above costs, other costs not included in the unit reference values (OCOM) are also recognised and will be recognised on the basis of their audited cost. These costs include:

• Direct and indirect capitalised operating expenses. When the capitalised expenses exceed 250,000 euros, they will be recognised with amortisation and financial remuneration based on their audited investment value, considering a useful life of 2 years. In these cases, the accrual will occur from January 1 of the year following their commissioning. Capitalised expenses below this limit will be recognised as an expense for the year up to the limit established by the CNMC.
• The acquisition cost of the operating gas for transmission and of the odorant.
• The cost of electricity supply for LNG plants and for electric motors in compressor stations. In the case of the regasification plants this audited cost replaces the variable remuneration existing in the current framework.
• The cost increases from January 1, 2021 for municipal fees for public domain occupancy and for port fees for port domain occupancy.

b.3) Remuneration for adjustments to productivity and efficiency (ARPE).

Under this item, facilities that are at the end of their useful life (REVU) are remunerated, as are the transitional remuneration for continuity of supply (RCS), the remuneration for efficiency in operating and maintenance costs (RMP) and the remuneration for incentives to shrinkage reduction (IM) and promote gas in

maritime and land transport. The items included are the following:

• Remuneration for extension of useful life for fully depreciated assets (REVU). Once the regulatory useful life of each fixed asset finalises, if the asset is still in use, the remuneration accrued for said facility corresponding to remuneration for investment, amortisation, and financial remuneration will be nil. In contrast, remuneration for operation and maintenance of the asset "i" each year "n" will be increased. In this manner, the value recognised will be the amount corresponding to it multiplied by a coefficient for increasing its useful life, μin. This coefficient is gradually increasing, the starting value being higher than the current remuneration framework, from 0.15 to 0.3.
• Remuneration for continuity of supply (RCS). A transitional remuneration is established for the RCS during the 2021- 2026 regulatory period. The RCS is no longer indexed to the variation in demand or regasification but is calculated on the basis of the RCS recognised in the year 2020, adjusted by the following coefficients for the different gas years of the second regulatory period. ¾ of 95% for 2021, 80% for 2022, 65% for 2023, 50% for 2024, 35% for 2025 and 20% for 2026.
• Remuneration for productivity improvements in operating and maintenance costs in regulatory periods (RMP). This item intends to allow the carrier to retain part of the operating and maintenance cost efficiencies achieved over the previous regulatory period and is calculated per company, which is currently set at 50%. Under this item, the company is attributed 50% of the reduction in costs in the current regulatory period with respect to the unit costs of the previous regulatory period.
• Shrinkage reduction incentive (IM). Until September 30, 2021, the same methodology is applied as at present, while as from October 1, 2021, the new methodology established in Circular 7/2021 of July 28 comes into force.
• Incentive remuneration for the development of natural gas in maritime and land transport (IDS). This incentive aims to promote the use of natural gas as a fuel in maritime and land transport and is calculated by multiplying the gas invoiced for service stations connected to the transmission network and the LNG invoiced in regasification plants for use as maritime fuel by unit coefficients, which in both cases is 0.50 euros/MWh.

b.4) Remuneration for facilities in special administrative situations (RSAE).

This remuneration is applicable to the El Musel regasification plant, whose authorisation processing is currently suspended and corresponds to a transitional remuneration sum of the financial remuneration calculated on the standard investment value and the actual audited operation and maintenance costs.

It also applies to regasification plants with a unique and temporary financial regime such as the provision of LNG logistics services, in accordance with Article 60.7 of Law 18/2014, which will be defined by the CNMC in due course.

b.5) Remuneration for investments with cross-border impacts (RIIT).

This item is aimed at remunerating any costs that a carrier may incur as a result of the cross-border distribution of investment costs for a project of common European interest, as established in Article 12 of Regulation (EU) 347/2013 of the European Parliament and of the Council, of April 17, 2013.

Pipelines which affect reverse flow capacities or change the capacity to transport gas across the borders of the Member States concerned by at least 10% compared to the situation prior to the project is put into service may, in the case of natural gas, be considered as a project of common interest as set out in Appendix II to this Regulation. In the case of storage of natural gas, liquefied natural gas (LNG) or compressed natural gas (CNG), they will be considered as a project of common interest when the project is intended for the direct or indirect supply of at least two Member States or for compliance with the infrastructure standard (n-1) at regional level, in accordance with European Regulation 2017/1938 on Security of Supply.

b.6) Introduction of the principle of financial prudence

For the purpose of incorporating a principle of financial prudence required of the holders of transmission assets and liquefied natural gas plants, a penalty is established for companies whose ratios are outside the recommended value ranges set forth in the CNMC Communication 1/2019.

Accordingly, a company's annual remuneration in calendar year n could be reduced by up to 1% if the overall ratio defined in that communication, calculated on the basis of the financial statements for year n-2, is less than 0.9. However, this penalty would not be applicable until 2024, based on the 2022 financial statements.

c) Remuneration for underground storage activity

In accordance with Royal Decree 1184/2020, of December 29, which establishes the methodologies for calculating charges in the gas system, the regulated remuneration of basic underground storage facilities and the royalties applied for their use, the remuneration of the owners of basic underground storage facilities shall be determined per gas year, prior to the start of the gas year and in accordance with the methodology established in this Royal Decree 1184/2020, of December 29, following a report by the National Commission on Markets and Competition and the agreement of the Government's Delegated Commission for Economic Affairs.

In general, the remuneration methodology for underground storage is consistent with that established by the CNMC for transmission activities and LNG plants, although there are some differences due to the specific nature of underground storage facilities.

Other differences include the absence of unit reference values for investment and operation and maintenance, as well as the fact that the starting coefficient established for calculating the remuneration for the extension of useful life remains at 15%, compared to 30% for other activities. This difference is justified precisely because the operation and maintenance costs of each underground storage facility are established on the basis of their real audited costs and not on the basis of a reference unit value.

The annual remuneration of each company will be obtained as the sum of the individual remunerations of all the storage facilities it owns. The titleholders of basic underground storage facilities shall be entitled to the following remuneration:

• Remuneration for investment in facilities with individualised remuneration and in the purchase of gas for use as cushion gas.
• Provisional remuneration for operation and maintenance costs.
• Remuneration for life extension.
• Remuneration for productivity improvements.
• Transitional remuneration for continuity of supply, in accordance with the second transitional provision.
• Review, if applicable, of the provisional operation and maintenance remuneration.

Another novelty of the new remuneration framework is that it establishes a greater level of detail in the definition of the useful life of investments in underground storage facilities. Thus, previously a useful life of 20 years was established for all investments, but now a distinction is made between useful lives of 10 years for research and vehicles, 20 years for facilities, offshore platforms, vessels, helicopters and cushion gas, 40 years for gas pipelines and 50 years for onshore civil works.

The remuneration of each holder will be reduced according to the related income obtained, and by application of the penalty for insufficient financial prudence, calculated in accordance with Article 27 of Circular 9/2019, of December 12, of the National Commission on Markets and Competition, which establishes the methodology for determining the remuneration of natural gas transmission facilities and liquefied natural gas plants.

d) Income corresponding to Technical Management of the System (GTS)

Remuneration recognised in the 2021-2023 and 2024-2026 regulatory periods

In accordance with the adequacy of powers between the Government and the Regulator, the CNMC published, at the beginning of 2020, Circular 1/2020, establishing the methodology for the remuneration of the Technical Manager of the System.

This establishes a methodology that allows the remuneration of the GTS to be set on the basis of known criteria and parameters, thus giving the remuneration framework the

transparency, security and visibility in the medium-term that it lacked.

The Circular establishes regulatory periods of 3 years for the GTS, as opposed to 6 years for transmission and regasification activities.

The new remuneration methodology is based on the following principles:

• Obtaining a reasonable return for a low-risk activity.
• Consideration of the costs incurred by an efficient and wellmanaged company.

The methodology takes into account that the activity of the GTS requires few assets, basically in software and applications, that its costs correspond mainly to personnel and external services costs, and that its activity is strongly conditioned by European regulations and projects, in a changing and evolving environment, to which it must continuously adapt.

The remuneration is the sum of a basic remuneration (Bret), an incentive remuneration (RxInc), a remuneration for new obligations (CR and Guarantees of Origin) and a remuneration (D) for the difference, positive or negative, between the amounts received by the technical manager of the system for the application of the quota for the financing of the remuneration and the annual remuneration to be established for year n and for the difference between the estimate of the incentive remuneration term and the amount resulting from the level of compliance with it (the National Commission on Markets and Competition will determine by resolution the level of compliance with the incentives for year n).

The basic remuneration is made up of:

• Remuneration for OPEX, (BOpex): based on financial and regulatory accounting.
• Margin on recognised OPEX, (BMarg_Opex), set at 5%.
• Remuneration for depreciation, (BAmort), based on the depreciation of financial and regulatory accounting.
• Financial remuneration, (BRF) by applying a remuneration rate to the net asset value. The rate is the same as for transmission and regasification activity, 5.44% for the period 2021-2026.

Remuneration for incentives that can be up to +- 5% of the basic remuneration, depending on the incentive mechanism established by the CNMC for each regulatory period. However, for the regulatory period 2021-2023 the limits are set at +/-2%. At the end of 2020, the Circular establishing these incentives was being processed, and was published in the Official State Gazette in July 2021, effective as of October 1, 2021.

The remuneration for new obligations is established on the basis of a regulatory account, the balance of which is established for each regulatory period, divided by 3, for each of the years of the regulatory period. For the regulatory period 2021-2023, the regulatory account is 5 million euros.

Thus, for the regulatory period 2021-2023, the basic remuneration is set at 25.007 million euros and the remuneration of the regulatory account at 1.667 million euros.

For 2022, the remuneration of the GTS amounts to 27.943 million euros.

As in the current framework, the remuneration of the GTS will be recovered through the application of a fee, calculated as a percentage of the turnover from tolls and royalties.

e) Tolls and royalties relating to third party access to the gas system

The revenues collected from the application of tolls for third party access to gas facilities are exclusively used to support the remuneration of regulated activities for gas supply. As gas system revenues are used to finance all gas system costs, they must be sufficient to meet the full costs of the gas system.

The tolls and royalties are established so that their setting responds as a whole to the following principles:

• Ensure the recovery of the investments made by the titleholders during their useful life.
• Allow a reasonable return on financial resources invested.
• Determine the operating costs remuneration system in a way that encourages effective management and improvement of productivity that should be partly passed on to users and consumers.

In addition, tolls and royalties will take into account the costs incurred by the use of the network in a way that optimises the use of infrastructures and can be differentiated by pressure levels, consumption characteristics and duration of contracts.

The values applicable from October 1, 2022 to September 30, 2023 have been published in the Resolution of May 19, 2022, of the National Commission on Markets and Competition, which establishes the access tolls to the transmission networks, local networks and regasification for the 2023 gas year.

Similarly, the Ministry of Ecological Transition and Demographic Challenge is responsible for setting the remuneration and fees for access to underground storage facilities. From October 1, 2022 to September 30, 2023, the values of the access charges published in the Order TED/929/2022 of September 27, which establishes the gas network charges and the remuneration and charges for underground base storage for the gas year 2023, shall apply.

f) System of settlement of costs and regulated revenues

Until September 30, 2021, the billing and collection of the remuneration of regulated activities were subject to the settlement procedure established in Ministerial Order ECO 2692/2002, of October 28, regulating the settlement

procedures for the remuneration of regulated activities, charges and fees with specific destinations in the gas sector.

From October 1, 2021, the settlement procedures established in Ministerial Order TED/1022/2021, of September 27, regulating the settlement procedures of the regulated activities remunerations, charges and fees with specific destinations of the gas sector, are applicable.

The update of the settlement procedure was motivated to adapt it to the European Commission Regulation 2017/460 of March 16, 2017, establishing a network code on harmonised transmission tariff structures for gas. This Regulation determines the need for a regulatory account for the transmission activity that reflects the difference between the recognised remuneration and the revenues actually obtained in the tariff period, a principle that, in order to avoid discrimination, must also be applied to other activities.

It is also necessary to incorporate changes to adjust the calendar for sending information and approving settlements to adapt it to the gas year (from October 1 to September 30 of the following year).

Thus, 5 separate settlement procedures are established for the following activities:

• a. Trunk transmission.
• b. Local networks, which will include distribution, secondary transmission and primary transmission activities of local influence and any other facility determined by the regulations in force.
• c. Liquefied natural gas plants.
• d. Basic underground storage facilities.
• e. Gas system charges. It will include the revenues from application of the unit charges defined in Royal Decree 1184/2020, of December 29, establishing the methodologies for calculating the gas system charges, the regulated remuneration of basic underground storage facilities and the fees applied for their use, and the costs listed in Article 59.4.b) of Law 18/2014, of October 15. Basically, the costs to be recovered through charges are: CNMC fee, differential cost of supply of liquefied or manufactured natural gas in island territories, annuity of the deficit for 2014 and subsequent years (until 2020), demand management measures that are recognised by regulation, the approved remuneration of the natural gas Market Operator and any other cost that is legally established.

It is understood that annual mismatches between revenues and costs of the gas system occur if the difference between revenues and settlement costs in each of the settlement procedures of a gas year results in a negative amount.

As from October 1, 2021, with the entry into force of Order TED/1022/2021, the provisional annual mismatches between revenues and costs for the year for each settlement procedure are determined in the provisional settlement 14 of each year. The provisional annual mismatch of each subject, whether

positive or negative, will be recognised in the form of a lump sum payment in the first available settlement of the gas year following the provisional settlement 14.

The final settlement will determine the final annual mismatch between revenues and costs for each obligated party. The difference between the final and provisional deviation, whether positive or negative, will be settled as a one-time payment in the first available settlement of the following gas year.

Additionally, in accordance with the provisions of Article 61.3 of Law 18/2014 of October 15, 2014, as long as there is an accumulated deficit as of December 31, 2014 or mismatches between revenues and expenses of subsequent years pending amortisation, any surplus or deficit in collection under charges shall be applied in accordance with the provisions of the aforementioned article, without being able to reduce the amount thereof. Once there are no outstanding deficits and mismatches to be amortised, any deficit/surplus in the collection of charges will be applied in the calculation of charges for the following year.

Law 18/2014, of October 15, establishes the principle of economic and financial sustainability in the gas system. In accordance with this principle, revenues from the system will be used exclusively to sustain own remuneration of the regulated activities concerning the supply of gas and, furthermore, the revenues must be sufficient to satisfy all of the costs incurred by the gas system. In addition, in order to ensure economic sufficiency and avoid the appearance of new deficits ex ante, all regulatory measures relating to the gas system which involve an increase in costs for the system or a reduction of income must incorporate an equivalent reduction in other cost items or an equivalent increase in income which ensures equilibrium for the system.

Also, the previous remuneration framework established a specific methodology for resolving temporary imbalances between revenues and costs of the system, with a series of measures aimed at definitively ending the deficit of the gas system, such as:

• As long as there are annual amounts pending payment from previous years, tolls and royalties cannot be revised downwards, but will be increased if there are negative mismatches that exceed a set limit.
• A period of several years is established for the recovery of imbalances, also recognising financial costs to the companies regulated by the financing of these imbalances, in such a way that the subjects shall recover:
  • The accumulated deficit of the gas system at December 31, 2014 during the fifteen years following the date of approval of the final settlement of that financial year, recognising an interest rate in conditions equivalent to those of the market.
• And the temporary imbalances between income and expenses resulting for 2015 during the following five years, also recognising an interest rate in conditions equivalent to those of the market.

If the annual mismatch between revenues and recognised remuneration is positive, the amount will be used to settle the

outstanding annual payments relating to mismatches from previous years. This amount will be applied first to the temporary imbalances between revenues and costs of the system and then to those annual payments relating to the accumulated deficit of the gas system at December 31, 2014.

Since 2018, positive annual mismatches between income and remuneration have been generated (surplus), so that the 2015 and 2017 financial years were amortised on an accelerated basis against the surplus of this 2018 financial year. Similarly, in 2019, the annual mismatch between income and remuneration resulted in a surplus of 353,859 thousands of euros, with the collection right pending receipt for the 2016 (33,475 thousands of euros) mismatch being fully amortised, and the 2014 mismatch being partially amortised (320,384 thousands of euros).

From that date, the annual mismatch between revenues and remuneration is used to cover the negative mismatch pending from 2014, partially amortising 186,691 thousands of euros against the surplus for 2020 and 81,127 thousands of euros against the surplus for 2021, whose resolution was approved by the CNMC on July 28, 2022.

Thus, the 2014 mismatch remaining to be amortised at January

1, 2023 amounts to 58,832 thousands of euros, which is much

lower than the 1,025,053 thousands of euros accumulated at December 31, 2014.

With regard to the Company's share of the deficit generated by the system during 2014, it should be noted that, as reported in the 2017 annual accounts, on December 1, 2017 the receivables from the accumulated deficit rights at December 31, 2014 were assigned. Said rights represented an amount of 354,751 thousands of euros, corresponding to the nominal amount plus accrued interest pending collection at the date of cession. Through the above operation Enagás Transporte, S.A.U. transferred the obligations and contractual rights involved in the ownership of the transferred financial asset to the Santander Group, and proceeded to derecognise that financial asset from the Balance Sheet, as the Sole Director of Enagás Transporte, S.A.U. deemed that all the risks and benefits associated with it had been substantially transferred, together with control of the aforementioned financial asset.

g) Development of the regulatory framework in 2022

The main regulatory developments applicable to the gas sector, approved in the course of 2022, were the following:

1. Supranational regulations

Gas regulation

TEN-E

Regulation (EU) 2022/869 of the European Parliament and of the Council of May 30, 2022 on guidelines for trans-European energy infrastructures and amending Regulations

(EC) No 715/2009, (EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944 and repealing Regulation (EU) No 347/2013

Commission Delegated Regulation (EU) 2022/564 of November 19, 2021 amending Regulation (EU) No 347/2013 of the European Parliament and of the Council with regard to the Union's list of projects of common interest

REPowerEU

Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions. REPowerEU: Joint action for more affordable, secure and sustainable energy

Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions. REPowerEU Plan

Commission Staff Working Document Implementing the

Repower EU Action Plan: investment needs, hydrogen accelerator and Achieving the bio-methane targets.

Renewable energies

Commission Delegated Regulation (EU) 2022/342 of December 21, 2021 supplementing Regulation (EU) 2021/1153 of the European Parliament and of the Council with regard to the specific selection criteria and the details of the process for selecting cross-border projects in the field of renewable energy

Commission Recommendation of May 18, 2022 on speeding up permit-granting procedures for renewable energy projects and facilitating Power Purchase Agreements

Commission Delegated Regulation (EU) 2022/2202 of August 29, 2022 supplementing Regulation (EU) 2021/1153 of the European Parliament and of the Council by establishing a list of selected cross-border renewable energy projects

Commission Notice. Guidance on Cost-Benefit Sharing in Cross-border Renewable Energy Cooperation Projects

Council Regulation (EU) 2022/2577 of December 22, 2022 laying down a framework to accelerate the deployment of renewable energy

Intervention measures energy markets

Council Regulation (EU) 2022/428 of March 15, 2022 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Short-Term Energy Market Interventions and Long Term Improvements to the Electricity Market Design – a course for action

Communication from the Commission to the European Parliament, the European Council, the Council, the European

Economic and Social Committee and the Committee of the Regions. Security of supply and affordable energy prices: options for immediate measures and preparing for next winter

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Energy emergency: united in preparedness, procurement and EU protection

Council Regulation (EU) 2022/1854 of October 6, 2022 on an emergency intervention to address high energy prices

Council Regulation (EU) 2022/2576 of December 19, 2022 enhancing solidarity through better coordination of gas purchases, reliable price benchmarks and exchanges of gas across borders

Council Regulation (EU) 2022/2578 of December 22, 2022 establishing a market correction mechanism to protect Union citizens and the economy against excessively high prices

Security of Supply and Storage

Regulation (EU) 2022/1032 of the European Parliament and of the Council of June 29, 2022 amending Regulations (EU) 2017/1938 and (EC) No 715/2009 with regard to gas storage

Commission Implementing Regulation (EU) 2022/2301 of November 23, 2022 setting the filling trajectory with intermediary targets for 2023 for each Member State with underground gas storage facilities on its territory and directly interconnected to its market area

Reduction of gas demand

Joint Communication to the European Parliament, the Council, the European Economic and Social Committee, and the Committee of the Regions. EU energy commitment in a changing world

Communication from the Commission to the European Parliament, the European Economic and Social Committee and the EU Committee of the Regions. Saving energy

Council Regulation (EU) 2022/1369 of August 5, 2022 on coordinated demand-reduction measures for gas

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Save gas for a safe winter

Sustainable Financing

Commission Delegated Regulation (EU) 2022/1214 of March 9, 2022 amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities

Directive (EU) 2022/2464 of the European Parliament and of the Council of December 14, 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive

2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting

National Energy and Climate Plans

Communication from the Commission on guidance to Member States for the update of national energy and climate plans for the period 2021-2030

Commission Implementing Regulation (EU) 2022/2299 of November 15, 2022 laying down rules for the application of Regulation (EU) 2018/1999 of the European Parliament and of the Council as regards the structure, format, technical details and process for the integrated national energy and climate progress reports

Digitisation and Cybersecurity

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Digitising the energy system: the EU action plan

Directive (EU) 2022/2555 of the European Parliament and of the Council of December 14, 2022 on measures for a high common level of cybersecurity across the Union, amending Regulation (EU) No 910/2014 and Directive (EU) 2018/1972, and repealing Directive (EU) 2016/1148 (NIS 2 Directive)

Resilience of critical entities

Directive (EU) 2022/2557 of the European Parliament and of the Council of December 14, 2022 on the resilience of critical entities and repealing Council Directive 2008/114/EC

2. Spanish Regulation

In relation to the general framework of the gas system and its facilities

Energy policy

Resolution of January 27, 2022 from the Board of Directors of E.P.E. Institute for the Diversification and Saving of Energy (IDAE), M.P. establishing the first call for the programme of incentives for pioneering and unique renewable hydrogen projects (H2 PIONEROS Programme).

Informative Circular 1/2022, of January 25, of the National Commission on Markets and Competition, on supply prices for natural gas and renewable energy.

Order TED/132/2022, of February 21, adopting the First Work Programme of the National Climate Change Adaptation Plan 2021-2030.

Royal Decree-Law 6/2022, of March 29, adopting urgent measures in the framework of the National Response Plan to the economic and social consequences of the war in Ukraine.

Resolution of May 5, 2022, of the National Commission on Markets and Competition, which establishes the value of the Global Ratios Index for 2022 of the companies that carry out the activities of transmission and distribution of electrical energy and the activities of transmission,

regasification, underground storage and distribution of natural gas.

Royal Decree 376/2022 of May 17, which regulates the criteria for sustainability and reduction of greenhouse gas emissions from biofuels, bioliquids and biomass fuels, as well as the system of guarantees of origin of renewable gases.

Royal Decree-Law 10/2022 of May 13, which temporarily establishes a production cost adjustment mechanism to reduce the price of electricity on the wholesale market.

Resolution of June 16, 2022, of the CNMC, on the certification of Enagás Transporte, SAU, with respect to participation in a biogas enrichment project for the subsequent injection of biomethane into the natural gas distribution network.

Royal Decree-Law 11/2022, of June 25, adopting and extending certain measures to respond to the economic and social consequences of the war in Ukraine, to address situations of social and economic vulnerability, and for the economic and social recovery of the island of La Palma.

Order TED/706/2022 of July 21, approving the regulatory bases and incentive programmes for the granting of aid to singular projects for biogas installations, within the framework of the Recovery, Transformation and Resilience Plan.

Order TED/707/2022 of July 21, establishing the regulatory bases for the calls for the incentive programmes for heating and cooling network projects using renewable energy sources, within the framework of the Recovery, Transformation and Resilience Plan.

Royal Decree-Law 14/2022 of August 1, on economic sustainability measures in the field of transport, grants and study aids, as well as energy saving and efficiency measures and measures to reduce energy dependence on natural gas.

Royal Decree-Law 17/2022 of September 20, adopting urgent measures in the field of energy, in the application of the remuneration system for cogeneration facilities and temporarily reducing the rate of Value Added Tax applicable to deliveries, imports and intra-Community acquisitions of certain fuels.

Royal Decree-Law 18/2022 of October 18, approving measures to reinforce the protection of energy consumers and to contribute to the reduction of natural gas consumption in application of the "Plan + seguridad para tu energía (+SE)", as well as measures regarding the remuneration of public sector staff and the protection of temporary agricultural workers affected by the drought.

Order TED/1026/2022 of October 28, approving the procedure for the management of the system of guarantees of origin of gas from renewable sources.

Resolution of November 10, 2022 of the CNMC, on the certification of Enagás Transporte, SAU, with respect to the participation of Enagás, SA, in a project to develop a green hydrogen generation plant.

Order TED/1211/2022 of December 1, which establishes the regulatory bases for the promotion of the circular economy and calls for the granting of aid for the year 2022.

Royal Decree-Law 20/2022 of December 27, on measures in response to the economic and social consequences of the war in Ukraine and support for the reconstruction of the island of La Palma and other situations of vulnerability

Remuneration framework, tolls, charges and settlement system

Resolution of May 19, 2022, of the National Commission on Markets and Competition, establishing remuneration for the 2023 gas year of the companies that carry out the regulated activities of liquefied natural gas plants, transmission and distribution.

Resolution of May 19, 2022, of the National Commission on Markets and Competition, establishing the access tolls to the transmission networks, local networks and regasification for the gas year 2023.

Order TED/929/2022, of September 27, establishing the gas system charges and the remuneration and fees for basic underground storage facilities for gas year 2023.

Resolution of December 22, 2022, of the National Commission for Markets and Competition, which provisionally establishes for the financial year 2023 the remuneration and the quota destined to the financing of the technical manager of the gas system.

Resolution of December 22, 2022 of the Directorate General of Energy Policy and Mines, publishing the last resort natural gas tariff applicable during the first quarter of 2023.

Spanish gas system operation

Resolution of January 12, 2022, approving the reference prices for calculating the value of gas, oil and condensate extraction for 2021.

Resolution of January 19, 2022, publishing the assigned and available capacity in basic underground natural gas storage facilities for the period April 1, 2022 to March 31, 2023.

Resolution of March 24, 2022, of the National Commission on Markets and Competition, establishing the detailed procedure for the development of congestion management mechanisms and mechanisms to avoid the hoarding of capacity in the gas system.

Resolution of March 28, 2022, of the Directorate General of Energy Policy and Mines, publishing the last resort natural gas tariff.

Resolution of May 5, 2022, from the Directorate General of Energy Policy and Mines, determining the incentive for the reduction of transmission shrinkage in 2019.

Resolution of July 28, 2022, of the National Commission for Markets and Competition, which establishes the destination of natural gas stocks in the gas system shrinkage balance account.

Resolution of November 10, 2022 of the National Markets and Competition Commission, which establishes the technical management regulations of the gas system on scheduling, nominations, allocations, balances, the management and use of international connections and self-consumption.

Order TED/1295/2022, of December 22, establishing the values of the remuneration for the operation corresponding to the second calendar semester of the year 2022, applicable to certain facilities for the production of electricity from renewable energy sources, cogeneration and waste.

On February 20, 2023, the Board of Directors of Enagás, S.A. prepared the Consolidated Annual Accounts for the year ended December 31, 2022, consisting of the accompanying documents attached hereto, in accordance with the provisions of Article 253 of the Corporate Enterprise Act and Article 37 of the Code of Commerce, and remaining applicable standards.

DECLARATION OF RESPONSIBILITY: For the purposes of article 118.2 of the Consolidated text of the Securities Market Act and article 8.1 b) of Spanish Royal Decree 1362/2007, of October 19, 2007, the directors state that, to the best of their knowledge, the Consolidated Annual Accounts, prepared in accordance with applicable accounting principles, provide a true and fair view of the equity, financial position and results of the Group. They additionally state that, to the best of their knowledge, the directors not signing below did not express dissent with respect to the Consolidated Annual Accounts.

Chairman: (Signed the original in Spanish)	Chief Executive Officer: (Signed the original in Spanish)
Mr Antonio Llardén Carratalá	Mr Arturo Gonzalo Aizpiri
Directors: (Signed the original in Spanish)
Sociedad Estatal de Participaciones Industriales-SEPI	Mr José Montilla Aguilera
(Represented by Mr Bartolomé Lora Toro)
Ms Ana Palacio Vallelersundi	Ms María Teresa Arcos Sánchez
Ms Eva Patricia Úrbez Sanz	Ms Natalia Fabra Portela
Mr Santiago Ferrer Costa	Ms Clara Belén García Fernández-Muro
Mr David Sandalow	Mr José Blanco Lopez
Ms María Teresa Costa Campi	Mr Manuel Gabriel González Ramos

Mr Cristóbal José Gallego Castillo

DILIGENCE to record that, in accordance with the call of the Board of Directors, having been held at the registered office, allowing the directors to participate telematically, the Consolidated Annual Accounts have been drawn up with the agreement of all members of the Board of Directors, which is certified by the Secretary of the Board with his signature below, and with the signatures of those Directors who have physically participated in the Board of Directors.

Electronic signature of the Secretary to the Board:

Mr Rafael Piqueras Bautista

CONSOLIDATED MANAGEMENT REPORT 2022

Table of contents

Letter from the Chairman	1
Interview with the Chief Executive Officer	2
Enagás in 2022	6
1.Our business model	7
Our activities	7
Purpose, vision and values	9
Geographies	10
2.Our commitment to the energy transition	11
Strategy	11
New energy paradigm	11
2030 Strategic Plan	13
Targets linked to variable remuneration	14
Decarbonisation and carbon neutrality	16
Targets and roadmap to decarbonisation	16
Renewable gases	18
Sustainable mobility	20
Corporate innovation and technology	22
Innovation and corporate venture	22
Digital transformation	24
Technological innovation	25
Sustainable finance	26
Financing linked to sustainability	26
European Taxonomy for Sustainable Activities (contribution to climate change mitigation)	26
Sustainability	34
Sustainability strategy	34
Contribution to the SDG	35
Ranking on indices and certifications	37

3.Environmental, social and governance (ESG) management	40
3.1 Climate action and energy efficiency	47
3.2 People	64
3.3 Health and Safety	81
3.4 Natural capital and biodiversity	89
3.5 Good Corporate Governance	100
3.6 Ethics and integrity	108
3.7 Financial and operational excellence	114
3.8 Local communities	123
3.9 Human rights	129
3.10 Affiliates	133
3.11 Supply chain	138
4. Risk management	142
5. Key indicators	150
6. Appendices	156
About our Consolidated Management Report	156
External verification report	157
Non-financial and diversity reporting requirements (Law 11/2018) and the EU Taxonomy for sustainable activities Regulation	160
GRI content index	167
SASB content index	182
TFCD content index	185
Global Compact content index	187
Contact	188
APMs	189

Letter from the Chairman [GRI 2-22]

Antonio Llardén

2022 was an extraordinarily intense year and one in which Enagás has faced equally extraordinary challenges. A year in which many of the things that were taken for granted starting with peace in Europe - came into question, and undoubtedly a historic year for the sector and for Enagás.

Today, context is everything and our context is, more than ever, Europe. Until Russia's war against Ukraine threatened its energy security, the EU had not thought it would need a common energy policy that went beyond certain cross-cutting environmental and competition issues. In general, energy depended on the history and circumstances of each country. Security of supply was taken for granted and was not on the European agenda.

A NEW EUROPEAN ENERGY PARADIGM

With the outbreak of war, the situation took a 180-degree turn, and Europe became acutely aware of the importance of having a European energy policy. The European Commission's prompt response and corresponding actions have kept us in better standing than we had anticipated a year ago. Europe has managed to safeguard its energy security this winter and lay foundations for the future.

The REPowerEU European roadmap has laid the foundations for truly European energy around the three pillars on which any energy policy must be based: decarbonisation, on which significant collaborative work has been done through the Green Deal and the 'Fit for 55' package; security of supply, which has become a priority; and rising European energy prices, which had to be addressed in order to mitigate their harsh social and economic impact on citizens and industries.

European energy alignment will not be easy, but it is an opportunity to agree on the fundamentals, from both a strategic and long-term perspective. During these months, for the first time and with the full cooperation of the entire sector, the European Union has taken logical steps that are proving successful. One example is the target for filling European gas storage facilities, which has been exceeded with levels above 90%.

The goals set by REPowerEU are as ambitious as they are necessary. Europe faces a significant challenge in weaning itself off Russian gas by 2030, and all potential solutions must be considered. This includes promoting greater integration of European energy systems, as well as new energy vectors, such as hydrogen. The announcement of the H2Med corridor is a clear milestone in this European energy policy. It will also allow Spain to make an even more relevant and supportive contribution to Europe's energy security: we could contribute 10% of the 20 million tonnes of consumption that REPowerEU has set as a target for 2030.

THE STRATEGIC CONTRIBUTION OF SPAIN AND ENAGÁS

This important contribution by Spain, and by Enagás, to the supply of other European countries is possible because our energy model - which we chose 50 years ago for geographical reasons, among others - sets us apart. Today, we have 44% of the continent's LNG storage capacity and 33% of its regasification capacity.

The six LNG plants in operation in the Spanish Gas System are a strategic asset of the first order: they make it possible for Spain to have one of the most diversified and flexible - and therefore most secure - gas supplies in the world, and also for natural gas prices in our country to be among the lowest in the whole of the European Union since the outbreak of the war in Ukraine. The message of reassurance that Spain has been able to provide about supply is based on this powerful infrastructure network, diversification and all the measures that we have been taking together with the Spanish Government over the last year.

In 2023, security of supply will continue to be a priority for Europe, which is already taking joint measures in this respect, in line with the pioneering measures proposed by Spain. At Enagás, in coordination with the Ministry for the Ecological Transition and the Demographic Challenge, we will continue to do what is necessary, with initiatives and operations that reinforce the commitments we made in our 2022-2030 Strategic Plan: to contribute to the security of supply in Spain and Europe and to decarbonisation.

In short, this is the truly exceptional context in which Enagás has worked and operated during the financial year reported in this Management Report, which includes financial and non-financial information. In this complex environment, we have achieved results that meet our goals for the 16th consecutive year.

I would like to thank all Enagás professionals for their dedication, effort and excellent work, and the members of our Board of Directors for their magnificent performance and the value they have brought to the company. And, of course, I thank our shareholders for trusting in us for another year: rest assured that the entire team is taking on 2023 with the firm intention of continuing to create value for you.

ANTONIO LLARDÉN

CHAIRMAN

Interview with the Chief Executive Officer [GRI 2-22]

Arturo Gonzalo

"Sustainability is one of Enagás' calling cards and a through-line across all our business"

2022 was marked by great global uncertainty and complexity for the energy sector. How would you say the year has gone for Enagás, now that you are also in your first year as the company's CEO?

I joined Enagás three days before Russia's invasion of Ukraine; indeed, the following months were truly difficult and exceptional for our sector, with Europe facing an energy crossroads that has proved to be a watershed moment.

2022 was a year in which energy was in the spotlight, in which we saw many disruptions around us and in which Spain, and also Enagás, were very visible. More than ever, our strategic role in Europe and the importance of the work we do stood out.

We quickly aligned ourselves with the priorities set by Europe through REPowerEU, and in the 2030 Strategic Plan we presented in July, we incorporated these priorities into our goals: contributing to security of supply and decarbonisation. Since then, we have been making progress, even more than expected, in the implementation of this Plan, responding reliably to the needs that have arisen both from Spain and from Brussels. This progress has included some significant milestones: we have increased the filling level of underground storage facilities to over 90%, increased the interconnection capacity with France through Irun by an additional 1.5 bcm and made every effort to facilitate the loading of LNG tankers at Spanish terminals bound for other European countries, such as Italy and Germany, which increased by 40% compared to the previous year.

We have had to operate in a tough context, and we have functioned at 100%, both in terms of the availability of our infrastructures and the coordination of the Gas System, which has met demand in all circumstances and functioned with total normality, with 100% availability, 24 hours a day, every day of the year.

The war has shown that accelerating decarbonisation through vectors such as renewable hydrogen is also key to advancing energy sovereignty and that it is essential to have a European infrastructure network for this purpose; this is something that Enagás has been working on for some time now, in collaboration with operators in other European countries.

"In 2022, Spain and Enagás were very visible. More than ever, our strategic role in Europe and the importance of the work we do stood out"

How is the company preparing for 2023?

We are starting 2023 with a lot of energy; we already held Enagás Hydrogen Day, which was very well received. Institutions and companies from the sector were represented, and we wanted to show that it is from synergies, collaboration and alliances that we focus our commitment to the development of this energy vector.

2022 was the year of security of supply, which will remain a priority, and 2023 will be the year of hydrogen. We have a lot of technical work ahead of us on the major H2Med hydrogen project in coordination with our counterparts in Portugal, France and Germany, and we hope to end the year with the addition of this corridor - as well as the backbones of the Spanish Hydrogen Backbone Network - to the EU list of Projects of Common Interest.

It will again be a very intense year, but we have a clear European roadmap in the REPowerEU plan. In Spain, an update of the PNIEC is scheduled for mid-year, which will also provide us with a framework.

At Enagás, we will continue along the path established in our Strategic Plan, tackling all the challenges we set out in it, such as the commissioning as a logistics centre of the El Musel Plant in Gijón, which will place another terminal at the service of Europe's security of supply, and the launch of the System of Guarantees of Origin of renewable gases, which has already started and is run by Enagás GTS. Both initiatives are included in the +Energy Security Plan of the Ministry for the Ecological Transition and the Demographic Challenge.

We are also continuing to make progress with our asset rotation plan; so far in 2023, we have already announced the expansion of our stake in Trans Adriatic Pipeline (TAP), a key infrastructure for Europe.

In relation to the arbitration process in Peru concerning GSP, ongoing according to the established procedural calendar, our legal advisors consider that the award should be rendered during the first half of 2023.

Returning to 2022, what would you highlight from the year's results?

We achieved a net profit of 376 million euros and met the targets we had set ourselves in a very difficult year worldwide and, in particular, in Europe and for the energy sector.

Consolidated Management Report 2022

These results were made possible by the high level of execution of our Strategic Plan over the last eight months and by our emphasis on cost control in a challenging environment. Recurring operating expenses increased by only 3.8% compared to 2021, demonstrating the effectiveness of our 2022-2026 Efficiency Plan, which includes measures to minimise the impact of inflation as much as possible.

I would also like to highlight the good performance of our subsidiaries, which contributed 39% of our profit.

What aspects of the year stand out from a financial perspective?

We continue, as announced, with our asset rotation process, which is strengthening our balance sheet and our solid financial position to enable us to take advantage of the new opportunities of the decarbonisation process in Spain and Europe, which is the focus of our Strategic Plan. The sale of our 45.4% stake in the GNL Quintero terminal in Chile resulted in a gross cash inflow of 639 million euros and generated net capital gains of 135 million euros.

We closed 2022 with an excellent liquidity position of 3.794 billion euros and net debt of 3.469 billion euros, 80% of which is at a fixed rate - which gives us a very solid position and shields us from interest rate turbulence - and with financing costs of 1.76%.

In addition, at the beginning of 2023, we signed a deal with twelve financial institutions to extend the maturity of our sustainable syndicated credit line of 1.55 billion euros to 2028, maintaining our commitment to link our economic conditions to the fulfilment of environmental targets. With this operation, which is in line with Enagás' sustainability strategy, we are reinforcing our goal of becoming a carbon-neutral company by 2040, demonstrating that financial and non-financial aspects increasingly go hand in hand.

energy sector. That reliability is in our DNA"

What can you say in this context about the company's dividend policy?

Commitment to our shareholders and their remuneration is a priority for Enagás. And I would like to emphasise here our commitment to our minority shareholders, who are very important to us and who now represent 27% of Enagás shareholders.

In our Strategic Plan, we have reaffirmed the dividend policy established until 2026, thanks to the good visibility of the cash flows that we are going to generate in the period and the fact that these have sufficient slack to guarantee this dividend. In 2022, we increased it to 1.72 euros per share.

This dividend is consistent with our announced investment plan and our commitment to continue to maintain our credit ratings.

How did gas demand evolve in Spain?

In a context of energy conservation in Europe in the face of Russian extortion, thanks to the measures put forward by the Spanish Government and the effect of the price signals themselves, Spain managed to significantly reduce its gas consumption in 2022.

Specifically, household, commercial and industrial consumption fell by more than 20%, significantly above the target set for Spain by Brussels. It is also true that, as we have had a very dry year, this reduction was compensated, in part, by a notable increase in gas demand for electricity generation, which recorded in 2022 the highest figures since 2010. This is remarkable because it highlights the role of natural gas as a backup energy for renewables.

Another factor in the increase in gas demand for power generation are electricity exports to France and Portugal, which have helped strengthen the security of supply of the European electricity system.

We have also contributed to Europe's energy security by shipping gas, both through the loading of LNG tankers to other countries and exports through the two interconnections with France, which broke records. [GRI 2-22]

This was possible thanks to Spain's regasification plants, which make our Gas System a leader in terms of diversification of supply - in 2022, we received gas from 19 different origins - and position Spain as a strategic entry point for LNG to Europe.

What were the main milestones for Enagás' international activity during the year?

In line with our purpose and through our international assets we have also contributed to guaranteeing security of supply and driving the energy transition in the countries in which we operate. In Greece, for example, with record gas demand (7.5 bcm) in 2022, the fundamental role of our affiliate DESFA, the Greek TSO, and its Revithoussa LNG terminal in securing energy supply in the country and in the Mediterranean region was highlighted.

Our Strategic Plan has a very clear focus on Europe, and this is where we are going to concentrate our international activity in the coming years. Our strategy is to seek synergies and alliances with other TSOs. Along these lines, in October, we signed an agreement with the Albanian operator AlbGaz for a potential entry into its shareholding and to study joint natural gas and renewable gas projects, currently under development in Albania and in the Mediterranean region.

The latest international operation we have announced, which I mentioned earlier, also goes in this direction: we have increased to 20% our stake in the Trans Adriatic Pipeline (TAP), a key pipeline for European security of supply, which in its first two years of operation has already transported 18 bcm of gas from Azerbaijan to Europe.

In the United States, our affiliate Tallgrass Energy met its 2022 targets and recently announced a major milestone: the acquisition of the Ruby pipeline, which connects to the California market, will support future decarbonised energy projects and brings significant growth to Tallgrass starting this year.

And with regard to the affiliate Enagás Renovable, with whose portfolio of projects the company also contributes to the global decarbonisation process, what progress was made this year?

It was an important year. We granted a 30% stake to the world's largest hydrogen fund, Hy24; a major shareholder in Enagás, Pontegadea, came in with 5%; and more recently, Navantia, a company owned by the SEPI Group, also acquired 5%. The commitment of all three shareholders to Enagás Renovable consolidates our subsidiary as a catalyst for the creation of a renewable gas market, through projects for the production and commercialisation of green hydrogen and biomethane, as envisaged in our Strategic Plan.

Enagás Renovable is backing more than 50 projects together with more than 60 public and private partners, some of which are already a reality. To name just one achievement of 2022, in March, we cut the ribbon on the first industrial -scale plant to produce green hydrogen in Spain, as part of our Power to Green Hydrogen Mallorca project, a pioneer in Southern Europe, which we are backing with Acciona and the collaboration of IDAE and Cemex. In the first half of this year, it will start serving its first consumers, ranging from the island's municipal buses to hotels belonging to the Iberostar group.

Another important milestone in 2022 was the CNMC's establishment of a framework for defining Enagás Renovable's activities.

[GRI 2 -22]

"Our commitment to our shareholders and their remuneration is a priority for Enagás, and in our Strategic Plan, we have reaffirmed the dividend policy established until 2026"

What is the strategy for maintaining leadership in sustainability even in such difficult times?

Sustainability is one of Enagás' calling cards and a through-line across all our business, perfectly integrated into our strategy and culture.

In 2022, we updated our Sustainability Strategy in line with the new Strategic Plan and established, in addition to the decarbonisation of our operations and value chain, two other main lines of action: transformation with a focus on people and governance to ensure due diligence regarding human rights and the environment, with a focus on our supply chain and affiliates.

Moreover, we have integrated ESG risks into the company's overall risk model, and several indices and rankings have highlighted the high levels of transparency and quality of our reporting. This is an area in which we will continue to make progress in order to meet the requirements of the European Sustainability Reporting Directive and the new EFRAG (ESRS) reporting standards.

Rigorous measurement and transparent reporting of progress year on year is reflected in our leading position in the major sustainability indices. Two examples of this are the Dow Jones Sustainability Index (DJSI), where we are listed for the fifteenth consecutive year among the companies with the highest performance levels in the Gas Utilities sector, and FTSE4Good, which recognises us with the highest ESG rating in our sector.

What have been the main advances made by Enagás in terms of ESG?

We have a very strong ESG profile, and in 2022, we have continued to make progress in all three areas: environmental, social and governance.

In the environmental aspect, our main goal is to be a carbon neutral company by 2040, for which we have defined a very rigorous decarbonisation pathway with targets in line with the 1.5ºC scenario. We have raised our ambition to also contribute to decarbonising our value chain by setting targets to reduce Scope 3 emissions. In this area, we have achieved the highest rating (Gold Standard) from the OGMP 2.0 initiative, led by the United Nations Environment Programme (UNEP), for our methane emissions reduction plan.

In addition, our commitment to biodiversity has led us this year to set a target for 2050 to go beyond just conservation and have a positive impact on nature. In the social dimension, our priority is stable, quality employment. We want to accompany and prepare all our professionals for the major disruptions that our sector is undergoing, the digital transformation, the need for new ways of working, and so on. To this end, we are wrapped up in a Transformation Plan with which we can adapt as quickly and efficiently as possible to the challenges of our Strategic Plan.

For thirteen years, we have been awarded Top Employer recognition as one of the best companies to work for, and we are also the first energy company in Spain to earn the highest rating for work-life balance (A+ Level of Excellence) according to the Family-Friendly Company management model. This recognises our comprehensive plan, which includes more than 120 measures to promote work-life balance, co-responsibility and equal opportunity. We have a diversity and inclusion strategy with six lines of action, and we have once again been recognised as the top company in the Utilities sector by the Bloomberg Gender Equality Index.

In the area of Corporate Governance, we follow the most advanced recommendations worldwide, starting by separating the figures of the non-executive Chairman and CEO and having a clear majority of Independent Directors on the Board of Directors.

This past year, we also reached 40% of women on our Board of Directors and 33% on the Management Committee. We are working to make further progress in this area and to extend this diversity to all levels of the organisation.

To finish, would you like to point out any other relevant topic or issue?

We are at a historic moment for the global energy sector and for Enagás, in which we have much to contribute through specific and transformative projects, with collaboration, innovation and digitisation as key levers, and thanks to the company's magnificent team.

The implementation of the Strategic Plan and the Transformation Plan will continue to require a great deal of adaptability and effort from all of us, and I would like to reiterate my thanks to all Enagás professionals. Thanks also to all our stakeholders and, especially in a report like this, to our shareholders.

My appreciation also goes to each and every member of the Enagás Board of Directors for their support and trust.

Lastly, I would like to mention that the Enagás Board of Directors has approved this Annual Report, which represents the renewal of our commitment to the ten principles of the Global Compact, and at the same time, reflects our contribution to achieving the United Nations Sustainable Development Goals. [GRI 2-14, GRI 2-22]

Enagás in 2022

Security of supply and operational efficiency

432.4 TWh natural gas demand + exports to Europe (+4.4% in 2022)

• 364.4 TWh domestic gas demand (-3.7% vs. 2021) [GRI 302-2]

100% technical and commercial availability

93% fill level of underground storage facilities (vs. European standard of 80%)

+38% of vessel unloading usage vs. 2021 (171.9 TWh)

+49% of regasification usage vs. 2021 (149.7 TWh) +34% of LNG (liquefied natural gas) in storage vs. 2021

Sound financial and liquidity position

376 M€ Net profit1

39% contribution to the net profit of affiliates

3,469 M€ Net debt

3,794 M€ Liquidity

>14% leverage FFO/net debt

Rating

BBB Standard & Poor's

BBB Fitch

Important circumstances arising after year-end: see 'Consolidated Annual Accounts', section '4.9 Subsequent events'.

Sustainability

1,365 professionals [GRI 2-7]

• +1.6% vs. 2021 workforce
• 30% women

40% women on the Board of Directors

33.3 % women in the Executive Committee

CO2e emission reduction targets to achieve carbon neutrality by 20402 and degree of progress:

-32% reduction in CO2 emissions in 2022 vs 2014

-47% in 2026

-61% in 2030

-94% in 2040

Sustainability indices

88/100 DJSI Score (Top 5% S&P Global ESG Score 2022)

87.6/100 Bloomberg GEI

B CDP Climate Change and Water Rating

Contribution to society [GRI 201-1]

Economic value distributed

Attractive and sustainable shareholder remuneration

1.72 € Dividend per share (+1% vs. 2021) 15.5 € Share at 12/31/2022

Distribution of capital

pipeline. The transaction is expected to close in the first quarter of 2023

² Scope 1 and 2 targets with respect to 2022.

¹ In line with market guidance (380-390 million euros), whichincluded the capital gains from the sale of the Morelos

1. Our business model

Our activities

Enagás, a midstream company with more than 50 years of experience and independent European TSO (Transmission System Operator), is an international reference in the development and maintenance of gas infrastructure and in the operation and management of gas networks. [GRI 2-6]

Energy infrastructures are a core element in the energy transition towards decarbonisation. In addition, natural gas and renewable gases are of great importance in the medium to long term, as they allow the introduction of efficient industrial technologies that improve the intensity of energy use and industry competitiveness, generating direct and indirect employment.

Major company milestones

At Enagás we provide our experience to offer new energy solutions that contribute to a lowcarbon economy: renewable hydrogen and biomethane (see the 'Renewable gases' subsection).

Energy infrastructures are a core element in the energy transition towards decarbonisation

Enagás is founded		Enagás is listed on the stock exchang e		Acquisition of the Gaviota underground storage facility and 40% of the BBG Plant (Bilbao)		International acquisition of the GNL Quintero plant (Chile) and Morelos Pipeline (Mexico). Certification as European TSO		International acquisitions: TGP (Peru), TAP (Europe) and COGA (Peru).		Acquisitions: increased share in TGP (Peru), Saggas (Spain) and Quintero (Chile).		International acquisition of the operator DESFA. Sale of stake in Swedegas.		Completion of the TAP construction (Europe). Acquisition: increase of Tallgrass Energy LP (USA).		Sale of 40% of the subsidiary Enagás Renovable. Sale of stake in Quintero Plant (Chile), Morelos Pipeline (1) (Mexico). Sale of stake in Compañía Operadora de Gas del Amazonas (Peru) to Transportadora de Gas del Perú (TgP) [GRI 2-6]
1972		2002		2010		2012		2014		2016		2018		2020		2022
	2000		2009		2011		2013		2015		2017		2019		2021
	Enagás is appointed as Technical Manager of the Spanish Gas System		Enagás is named the sole transporter for the primary gas transmission trunk network		First international acquisition: TLA Altamira plant (Mexico).		Acquisition of Naturgas. International acquisition of Soto La Marina Compressor Station (Mexico).		Acquisitions: increased share in TGP (Peru) and Swedegas (Europe)		Acquisitions: increased share in COGA (Peru).		International acquisition of Tallgrass Energy LP (USA).		Acquisition (through DESFA) of Gastrade (FSRU Alexandroupolis)

(1) At year-end, Morelos pipeline is pending closing of sale.

Enagás' activities in the natural gas value chain [GRI 2-6]

More details about 'Gas transmission' are available on the corporate website

Purpose, vision and values

The company's purpose, vision and values, as well as its policies and strategy, are reviewed and approved by the Board of Directors. [GRI 2-12]

Purpose

Our purpose is twofold: to contribute to ensuring the security of energy supply, an essential service for the well-being of society. And to accelerate decarbonisation, driving innovation and creating value for our stakeholders.

2030 Vision

• To be the benchmark operator in the decarbonisation of gas infrastructure and to contribute to the security of supply in Spain and Europe.
• To become the future operator of dedicated hydrogen transmission infrastructure.
• To promote the deployment of renewable gases throughout the entire value chain.
• All this, developing innovative solutions in work organisation and technologies that will be key in a context of emission neutrality.

Values

• Efficiency
• Transparency
• Innovation
• Integrity
• Sustainability
• Safety
• Teamwork

Our purpose is twofold: to contribute to ensuring the security of energy supply, an essential service for the well-being of society. And to accelerate decarbonisation, driving innovation and creating value for our stakeholders

Geographies

[GRI 2-1, GRI 2-6]

Pipeline	( Underground storage facility	International connection
GNL Plant	Compressor station	Head office

2. Our commitment to the energy transition

Strategy

New energy paradigm

Business context

Russia's invasion of Ukraine has put the EU's energy security at risk, highlighting the vulnerability of external energy dependence in terms of prices, reliability and availability of supply.

The Spanish Gas System had already demonstrated its robustness after the cessation of Algerian gas imports through the Maghreb pipeline in October 2021 after 25 years in service. And the new European context has brought the need for greater exports through interconnections via France, having reached a historic milestone of annual exports, contributing to the security of supply of other European countries. The same is true for the fulfilment of filling milestones in the national underground storage facilities to face the winter.

To this end, the response of shippers has been fundamental, expanding their supply basket, and of the gas system infrastructures, where the six operational LNG terminals in the System have guaranteed the supply of the Spanish System at all times and increased the number of LNG loading - with the third-highest historical value - to other terminals in the EU, such as Germany and Italy.

The plants have had to increase their production to compensate for the lower inflows from international connections, and thus their unloading regime. Coordinating the new logistical programmes and the high filling level at all terminals has challenged the system operation and has increased the compression requirements to make this possible.

Demand has decreased by 4% compared to 2021, in a context of high prices and cost-saving measures. The largest declines have been recorded in industrial consumption, most marked in the refining and cogeneration sectors. On the other hand, demand for electricity generation has partially offset this decline, registering its highest values since 2010, mainly due to low rainfall and high electricity exports to the Portuguese and French systems.

Europe, through the Green Deal, the Fit for 55 plan and, this year following the war in Ukraine, the REPowerEU plan to reduce dependence on Russia and accelerate the energy transition, is setting a path towards the integration of the European energy system to make it more resilient and autonomous. The main lines of action are:

• Diversification of energy sources and commitment to efficiency. This includes the ambitious goal of reducing, until its eventual elimination, dependence on Russian gas by diversifying sources, developing EU purchases of natural gas, LNG (liquefied natural gas) and hydrogen, as well as improving the resilience of the energy system with more interconnections.

• Driving the energy transition, in which renewable hydrogen will play a key role, reaching 20 million tonnes consumed in the European Union by 2030, half of which could be imported. It also aims to increase biomethane production to 35 bcm by 2030.

The materialisation of REPowerEU is supported by initiatives such as the European Hydrogen Backbone, in which 31 European TSOs (Transmission System Operator) are taking part, including Enagás, and which promotes the development of a network of hydrogen corridors in Europe, among which is the Iberian Corridor. A network based on reusing existing gas infrastructures by 60% to 75% to make the process efficient. TSOs are therefore best placed in Europe to adapt these infrastructures to hydrogen and to facilitate the necessary new ones to materialise.

The current proposal for EU legislation envisages a centralised hydrogen infrastructure in Europe by 2030, managed by Hydrogen Network Operators (HNOs), and it is envisaged that TSOs will be able to play this role. This makes us a key figure in realising REPowerEU's objectives.

Enagás is working to boost domestic production of renewable hydrogen in Spain as well as in the development of new hydrogen connections with France and Portugal by 2030.

Spanish TSO Enagás, French TSOs Teréga and GRTgaz and Portuguese TSO REN have signed a Memorandum of Understanding (MoU) ratifying their commitment to collaborate to develop the H2Med project, the first renewable hydrogen corridor in the European Union, in line with the mandate of the governments of the three countries announced at the Euro-Mediterranean Summit on December 9, 2022. The objective of this collaboration is for this infrastructure to be operational by 2030. The first step was the presentation on December 15 of the H2Med candidacy as a European Union Project of Common Interest, together with the first axes of the future national backbone network that will connect the renewable hydrogen production centres with domestic demand and with the two international interconnections with France and Portugal.

Alongside the critical importance of gas infrastructures, our Strategic Plan is built on the conviction that Europe will realise its commitment to the creation of a genuine market for renewable gases, for the following reasons:

• Europe has the industrial capacity to do so.
• Learning curves and economies of scale will drive down the price of hydrogen, making it competitive sooner than initially expected.
• The European Union has the political will and determination to make this happen and, to this end, is promoting a favourable regulation for the creation of a hydrogen market in Europe.

In short, Enagás is a leading TSO, and our Strategic Plan also positions us as a leading HNO (Hydrogen Network Operator) in the 2030 horizon, promoting the development of renewable

gases, mainly renewable hydrogen, and making a significant contribution to the security of supply of the European energy system.

Enagás will play a key role, in collaboration with other European TSOs, in the integration of the European energy system

Regulatory vision to 2030

In Spain, the 2021-2026 regulatory framework is stable and transparent, and establishes a period of six-years without intermediate revision. This framework supports climate and energy targets by establishing incentives to keep the gas system infrastructure available, and to fulfil the role assigned by the Spanish National Integrated Energy and Climate Plan for natural gas and renewable gases in the energy transition process. This shows that the use of existing gas infrastructure is essential if advances are to be made in energy transition at the lowest cost.

However, this new paradigm requires regulatory action to speed up the energy transition and highlight the crucial role of Enagás' infrastructure for Europe's energy security:

• From 2022 to 2026, a period that requires maintaining regulatory stability and anticipating the new energy model.
  • Adapting CAPEX and OPEX standards to the current situation.
  • Recognising the costs of decarbonisation and those that increase the efficiency of the system.
  • Accelerating authorisations to anticipate the decarbonisation of our infrastructures.
  • Integrated planning of electricity, gas and the future hydrogen network.
• From 2027 to 2030, a period in which the regulatory foundations for new renewable gas networks, especially hydrogen, are laid.
  • A framework that enhances the value of natural gas infrastructures and their subsequent adaptation to hydrogen.
  • A stable regulatory framework that allows for:
    • Enagás to become a future HNO operator.
    • Ensuring return on investment and adequate profitability.
    • Temporary coexistence of natural gas and H2 networks.
    • A framework for the development of research work on saline storages for H2.

2030 Strategic Plan

Strategic priorities [GRI 2-23]

Our strategy has a clear purpose: to contribute to security of supply and decarbonisation, creating value, working towards sustainable and profitable growth and focusing on Spain and Europe.

		Resilient strategy for long-term sustainable growth in Spain and Europe
Sustainable and profitable growth	Transformation	Operational excellence	ESG (Environmental, Social, Governance)
• Security of supply and decarbonisation. • Focus on Spain and Europe. • Promotion of renewable gas development. • Innovation, technology and digitalisation to accelerate decarbonisation. • Relevance of cybersecurity.	• Focus on people, processes and new ways of working. • Digitalisation boost. • Strategic talent management. • Diverse and inclusive environment.	• 100% technical and operational availability of our infrastructures. • Operational flexibility. • Efficiency plan to absorb inflation.	• Sustainability/ASG due diligence. • Commitment to carbon neutrality.

Growth drivers

The four axes of company growth are presented below under a regulated or contractual business model approach, and discipline in required returns as well as capital allocation policy:

Core and adjacent businesses infrastructure	Innovation, technology and digitalisation	International development	Projects of our subsidiary Enagás Renovable
• Gas and transition infrastructures for security of supply, decarbonisation, maintenance/life extension, efficiency and safety. • REPowerEU interconnections. • Renewable hydrogen infrastructures (transmission and storage). • Adjacent businesses (small scale LNG).	• Incorporate the technology necessary for the competitive development of new activities in the field of energy transition. • Develop and promote new businesses adjacent to the core activities of Enagás: infrastructure operation and market development. • Transformation and digitalisation of the company to facilitate new ways of working.	Europe as a strategic focus of Enagás' investment plan: contributing to security of supply and decarbonisation in Europe.	• Develop projects for the production of renewable hydrogen to promote the decarbonisation of all sectors, favouring the dynamisation of the industrial fabric. • Develop projects for biomethane production to promote efficient waste management that contributes to the development of a circular economy.

Most of the investments included in this Strategic Plan have a business model that is currently regulated or will be regulated in the near future, or will have contracts that guarantee a security of returns comparable to that of regulated activity.

The investment plan included in the company's financial forecasts for the 2022-2030 period amounts to 2,775 million euros.

The Plan also includes the interconnection infrastructure projects that will be necessary for a real integration of the European energy market and which are currently being analysed by the EU.

On the other hand, the Efficiency Plan 2022-2026 to minimise the impact of inflation on the Company's manageable costs has been reinforced. This Plan presents the following levers:

• Efficiency in infrastructure management, both in terms of O&M and energy costs
• Internalisation of infrastructure maintenance.
• Digitalisation boost.
• Exhaustive control of corporate expenses.
• Innovative solutions with a focus on efficiency and process improvement.
• Optimisation of the management structure while maintaining a commitment to employment.

With respect to this Plan, the company's high level of operational efficiency is noteworthy, with a highly optimised cost base. Furthermore, CEER (Council European Energy Regulator) and GTBI (Gas Transmission Benchmarking Initiative) have rated Enagás as one of the most efficient TSOs in Europe.

Targets linked to variable remuneration

[GRI 2-19, GRI 2-20, GRI 2-23, GRI 2-24]

Strategic priorities are established as company targets linked to the variable remuneration of all Enagás professionals, including the Chief Executive Officer, thus linking remuneration to environmental, social and economic targets.

Moreover, Enagás has a Long-Term Incentive Plan in place, requiring the fulfilment of objectives aligned with strategic priorities, thus linking remuneration to the commitment to long-term management.

We have achieved 86.4% compliance of our 2022 annual targets, and we are on track to achieve our long-term objectives.

See details of the 2022-2024 ILP targets, the 2022 yearly targets and the 2023 yearly targets in the Annual Report on Directors' Remuneration

Sustainability is one of the targets linked to the variable remuneration of all employees

Strategic priorities 2022–2024 Long-Term Incentive Plan targets (% weighting) Yearly targets 2022 (% weighting) Achievement of 2022 targets (%) Shareholder remuneration Total shareholder return (25%) • Relative TSR: Enagás position in the ranking of the Comparison Group • Absolute TSR: share price target attainment in 2024 Improving the company's financial results (25%) • Profit after tax at December 31, 2022. 81% Regulated assets Funds from operations (20%): • Accumulated results corresponding to the Company's Funds From Operations (FFO) Strengthening regulated revenues (20%) • COPEX investments made in 2022 in infrastructure projects 78% International growth Dividends (20%): • Dividends from international affiliates and other businesses Development of international activities (20%) • Subsidiary budget compliance. • Subsidiary business plan fulfilment and growth promotion. • Strategic market monitoring and stakeholder management. 99% Sustainability Decarbonisation, diversity and inclusion (20%) • Decarbonisation: ◦ Reduction of CO2 emissions in line with the decarbonisation pathway (emissions 2024 vs. emissions 2021) ◦ Investment in renewable gases: investment and associated studies regarding the adaptation of infrastructures for the transmission of renewable gases and development of infrastructures dedicated to the transmission and storage of renewable gases • Diversity and inclusion: ◦ Percentage of women on the Board of Directors ◦ Percentage of women in managerial and pre-managerial positions ◦ Percentage of promotions that are women in managerial and premanagerial positions Sustainability and decarbonisation: (20%) • Positioning Enagás vis-à-vis socially responsible investors. • Advancing the ecological transition. Climate action: reduction of greenhouse gas (scopes 1 and 2) and methane emissions. • Promote renewable H2 and biomethane through the consolidation of identified projects and the promotion of mobility projects. • Promoting diversity and equal opportunity, people and cultural transformation. • Consolidation of Enagás' positioning as a key player committed to decarbonisation, the development of renewable gases and diversity and equal opportunity, through the media, digital assets and social networks, participation in forums and events, and internal communication. 82% Digitalisation and diversification Implementation of the Digital Transformation Strategy and improvement of indicators and strengthening the positioning of Enagás' digital assets (15%): • Development of priority initiatives from the Roadmap for the 2022-2024 Digital Transformation Framework and improvement to the 2022-2024 Digital Transformation indicators • Development and execution of the company's digital asset strategy for the 2022-2024 period and improvement of indicators Boosting digitalisation, corporate innovation and service provision (15%) 95% Total achievement 86.4%

Targets linked to variable remuneration

Decarbonisation and carbon neutrality

Targets and roadmap to decarbonisation [GRI 3-3, GRI 305-5]

Greenhouse gas emissions reduction targets:

Enagás is committed to achieving carbon neutrality by 2040. To this end, it has outlined a decarbonisation pathway with emission reduction targets aligned with the 1.5ºC temperature increase scenario. In addition to these targets in 2022 we added a medium-term target for 2026.

Update of Scope 1 and 2 emissions reduction targets

(1) Carbon neutrality will be achieved in 2040 with 23,162 tonnes of CO2e offset by nature-based solutions projects (reforestation).

The Scope 1 and 2 emission reduction targets include the Global Methane Alliance methane emissions reduction commitment, which will reduce methane emissions from our business by 45% by 2025 and 60% by 2030, compared to 2015 levels.

In addition, we are keeping our emissions reduction targets linked to variable remuneration (see the 'Targets linked to variable remuneration' sub-section):

• Annual target management programme: Enagás sets annual targets linked to the reduction of energy consumption, as well as to its own generation of electricity from efficient, clean and renewable sources.

• Long-Term Incentive Plan: from 2016 Enagás includes emissions reduction targets in its Long-Term Incentive Plan. The 2022-2024 Long-Term Incentive Plan contains an emissions reduction target.

In addition, the company has set the following targets for the reduction of its indirect Scope 3 emissions:

Indirect emissions reduction targets (scope 3) (1)

(1) Targets corresponding to 100% of indirect Scope 3 emissions, the most significant of which include emissions derived from natural gas flowing on and off our infrastructure network, emissions from our affiliates and our main suppliers (GHG Protocol categories 1, 2, 3, 4, 5, 6, 7, 9, 11, 15).

These targets reinforce the commitments adopted through its adherence to various international climate action initiatives:

• Science Based Targets3 : we are committed to setting out targets based in science.
• We Mean Business: we are committed to driving policies towards a low-carbon economy, setting a carbon price and reporting climate change information in corporate publications.
• Global Methane Alliance: we are committed to reducing methane emissions from our activity by 45% by 2025 and 60% by 2030 with respect to 2015 figures.
• Methane Guiding Principles: we have signed up to commitments on methane emissions reduction and transparency.
• Oil & Gas Methane Partnership (OGMP 2.0): we have joined the reporting framework initiative aimed at improving the quantification and reduction of methane emissions.

³ At the time of writing, SBTi has not yet defined a methodology for the Oil&Gas sector covering Enagás' midstream activities. However, Enagás incorporates SBTi's main recommendations in its target-setting methodology.

Decarbonisation of our operations

In order to meet the carbon neutrality and scope 1 and 2 emissions reduction targets established in the decarbonisation pathway, Enagás is applying the mitigation hierarchy by implementing specific actions that Enagás has identified and planned as part of its Energy Efficiency and Emissions Reduction Plan.

In this regard, Enagás is working on a plan to electrify turbocompressors in compressor stations and underground storage facilities by 2040. In 2022, this plan was updated in line with the new operating context (see the 'New energy paradigm' and 'Climate action and energy efficiency' chapters), taking into account the following factors when selecting facilities:

• Act on the facilities that are going to be more intensive in operation (higher CO2 emissions).
• Make the most of the useful remunerative life of the facilities.
• Match interventions to the need for maintenance development to minimise costs.
• Act on facilities with restrictions, either due to atmospheric emissions (NOx emission limits) or due to operational problems which could compromise their operation.
• Have H2-ready facilities distributed along the main axes of the gas system.

This plan foresees the electrification of 14 turbocompressors in the 2023-2031 period. The first electric engine is planned to be launched in 2023, followed by two in 2024 and six in 2026 until the plan is complete in 2031.

As a complementary measure to the implementation of the Turbocompressor Electrification Plan, Enagás proposes the use of biomethane as an operating gas. Taking into account the current conditions of biomethane supply on the market, the company estimates that it could start with the procurement of 280 GWh/year of biomethane on the market from 2025, increasing as necessary to meet the targets set.

Once the maximum technically possible reduction has been achieved at the facility level, with the above measures and those included annually in the Enagás Energy Efficiency and Emissions Reduction Plan, the subsequent neutralisation and compensation of residual emissions will be addressed. For this, carbon capture and storage solutions are being studied, as well as alternatives to reach carbon neutrality in the points where the previous options are not possible and/or profitable (offsetting - reforestation).

Decarbonisation of our value chain

To achieve the scope 3 emission reduction targets, namely 25% reduction by 2030 and 50% reduction by 2040 as compared to 2021, Enagás is working to:

• Developing renewable gases, renewable hydrogen and biomethane, both in their production and in the adaptation of existing infrastructures to transport them (see the 'Renewable gases' sub-section in this chapter).
• Promoting new uses for natural gas in mobility, mainly in maritime and rail transport (see the 'Sustainable Mobility' sub-section in this chapter).
• Collaboration with the company's affiliates (see the 'Affiliates' section in the 'Environmental, social and governance (ESG) management' chapter), supply chain (see the 'Supply chain' section in the 'Environmental, social and governance (ESG)

management' chapter) and companies and sectoral associations in the field of decarbonisation (see the 'Climate action and energy efficiency' section of the 'Environmental, social and governance (ESG) management' chapter).

[GRI 3-3, GRI 305-5]

Renewable gases

[GRI 201-2, GRI 203-1, GRI 203-2]

Security of supply and decarbonisation are the main axes on which the new European energy paradigm is based. These axes reinforce Europe's renewable energy and energy efficiency while allowing new infrastructure developments to be driven forward to integrate EU markets.

Spain occupies a privileged position thanks to its geographical location and its consolidated network of infrastructures and international connections. It is poised to become a leading country for the production and export of non-electrical renewable energies (hydrogen and biomethane), indispensable energy vectors that contribute to the development of a circular economy and to the energy transition process, as they enable progress towards a carbonneutral economy.

Renewable hydrogen, which is obtained from electrical renewable energy, is an energy vector for the future and a key solution for storing renewable energy. It also has multiple applications, as it can be used in all energy sectors (industry, mobility, domestic-commercial and electricity generation).

Biogas obtained from waste is a source of renewable, local and storable energy, with a positive impact on employment and the rural economy. After a process of cleaning and CO2, separation, the biogas transforms into biomethane: a totally renewable gas, of equivalent quality to natural gas, that can be injected into the transmission network.

At Enagás, we want to actively contribute to the energy transition process, promoting the integration of renewable gases in the Spanish and European Gas System.

See the Enagás informational video on renewable gases

Enagás is working towards the integration of a European energy system through infrastructures, the promotion of a future hydrogen network in Europe and the creation of a market for renewable gases

Renewable hydrogen infrastructures

As a leading TSO in Europe, Enagás can and must be a key player in the decarbonisation process and contribute its experience and knowledge to the adaptation of existing infrastructures and the development of new ones.

In fact, Enagás is one of the 31 European gas infrastructure operators driving the European Hydrogen Backbone plan for the development of a dedicated hydrogen transmission infrastructure.

In April 2022, Enagás set up the subsidiary Enagás Infraestructuras de Hidrógeno, through which the company is spinning off its functions as a natural gas infrastructure operator (TSO) for the possible future management of hydrogen infrastructures. Its objective is the development, construction and operation of infrastructures to meet the need for hydrogen transmission and storage, in line with national and European legislation, plans and roadmaps.

Through this subsidiary, we are already developing large-scale demonstration projects with pipeline hydrogen logistics as the core and main system. The technical specifications required for the construction of pure hydrogen pipelines are also being reviewed and modified.

With regard to the adaptation of existing infrastructures, Enagás is evaluating and testing equipment and materials, considering, among other factors, safety and regulatory matters. Enagás is also simulating the capacity for hydrogen injection of the current gas pipeline network, and analysing the possibility of transmitting pure hydrogen in existing pipeline network splits.

Work is also being done on identifying potential geological structures for seasonal underground storage of this new energy vector, and also on developing a roadmap to ensure that this infrastructure is viable.

We offer the energy market our experience and knowledge of energy infrastructures to address the challenge of creating a hydrogen infrastructure network in Spain and Europe and, with it, to reinforce and guarantee the security of supply of the European Gas System.

H2Med, first European green corridor

The first European green corridor (H2Med), submitted in December 2022 by the European TSOs Enagás, GRTgaz, Teréga and REN as a candidate for a European Union Project of Common

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Interest (PCI), includes two backbones for the national hydrogen network, with two possible underground storage facilities.

The implementation of the project will turn Spain into the first renewable hydrogen hub in the world. It will include the first axes of the national backbone network that will connect renewable hydrogen production centres with domestic demand and the two international interconnections with France and Portugal.

The design basis for these infrastructures is the so-called "Spanish hydrogen backbone", which Enagás has been designing for several years. Expansion and development is planned as production and demand for hydrogen from renewable energy sources grows.

Promoted by the governments of Spain, Portugal and France, H2Med includes two cross-border infrastructures, one between Celorico da Beira (Portugal) and Zamora, and the other, underwater, between Barcelona and Marseille (France). These are promoted by the respective gas system managers and transporters: Enagás on the Spanish side, REN on the Portuguese side, and GRTgaz and Teréga on the French side.

Together with the axes, two proposals have been submitted to assess the feasibility of two underground hydrogen storage facilities located in salt caverns in Cantabria and the Basque Country, with the aim of increasing the flexibility of the new system and guaranteeing continuity of supply throughout H2Med.

The two axes are considered as a single PCI candidate, but each warehouse has an independent candidacy, in which different promoters could participate. These projects fit into the framework of the PCIs, as they are thought to reinforce and facilitate international linkages.

Spanish Hydrogen Backbone

H2Med is the starting point for positioning Spain as Europe's leading hydrogen hub. The country has a high potential for renewable energy generation, a robust infrastructure network, industrial capacities, a favourable geographical position and a high level of collaboration with public administrations.

The estimated renewable hydrogen production potential in Spain in 2030 is between two and three million tonnes and in 2040, between three and four million tonnes.

As for the potential demand for renewable hydrogen, in 2030, it is estimated at:

• 1.3 million tonnes of domestic demand, which includes industries that are difficult to decarbonise (refining, chemicals, steel and ceramics). Likewise, heavy transport, which could be a potential additional demand, is not included.
• 2 million tonnes of exports via H2Med (BarMar, an underwater infrastructure between Barcelona and Marseille).

Nevertheless, the final renewable hydrogen targets will be defined in the PNIEC update.

The unequal distribution between production and demand in Spain justifies the need for a hydrogen transmission network. For this reason, different transmission and storage projects have been submitted to calls for PCIs (Spanish Hydrogen Backbone to 20304 ).

Enagás also proposed the Spanish Hydrogen Backbone to 2040, taking into account the synergies with the gas network, with which it has more than 80% overlap in routes5 . This entails a series of advantages, such as a reduction of up to 50% in processing times, more than 30% savings in costs or rights of way and passage, among others.

Enagás' current gas pipeline network is technically ready for hydrogen. Enagás has already identified more than 30% of reusable pipeline sections and the aim is to increase this percentage to 60-70%.

Management of the system of guarantees of origin of renewable gases

Enagás GTS has taken over the management of the system of guarantees of origin of gas from renewable sources, including renewable hydrogen. As established by the Spanish Government by Royal Decree, this system will allow producers, shippers and consumers to ensure the renewable origin of energy and differentiate it from fossil fuel gas. Thus, each megawatt-hour (MWh) of 100% renewable gas will result in the issuance of a guarantee of origin with information on where, when and how the gas was produced. Therefore, the guarantees will provide added value when it comes to shipping the gas, which will encourage its consumption and consequently benefit the environment.

In addition, the regulation will create a Registry of Renewable Gas Production Devices and a Committee of Subjects of the Guarantees of Origin System. Producers, shippers and retailers will be able to trade guarantees of origin in a transparent and secure way within the system, which will document the production, transfer (including import and export) and redemption of guarantees of origin.

Production of renewable gas through the Enagás Renovable subsidiary

In addition, Enagás, through its subsidiary Enagás Renovable, is developing specific projects focused on producing renewable hydrogen. These are projects aimed at decarbonisation and a just and inclusive transition, drivers throughout its value chain, which promote the development of the industry, create sustainable jobs and, whenever possible, are developed jointly with other partners. The CNMC has defined an operating framework for the definition of Enagás Renovable activities.

Enagás Renovable has a portfolio of some 25 renewable hydrogen development projects and 21 biomethane development projects distributed throughout Spain, in collaboration with other partners.

Enagás Renovable Shareholding

[GRI 201-2, GRI 203-1, GRI 203-2]

⁴ This network is subject to what is defined in the Government's Binding Planning and prior cost-benefit analyses (CBA).

Sustainable mobility

[GRI 203-1, GRI 203-2]

Enagás is committed to decarbonising transport by promoting the use of natural gas and renewable gases in mobility.

Natural gas plays a highly relevant role in ensuring security of supply and competitiveness, while meeting the energy requirements of highly demanding sectors, such as intensive industry or segments that are difficult to electrify, where there are currently no solutions that can meet the requirements of the majority of users. In the field of heavy and maritime transport, natural gas is positioning itself as one of the most sustainable and realistic fuels in the short-term, key to reducing emissions and immediately improving air quality.

The use of natural gas as a fuel for transport would allow for NOx emissions to be reduced by 80-90%, CO2 emissions to be reduced by 20-30% and SOx emissions and particles by practically 100% compared to traditional fuels. This makes natural gas a sustainable alternative for mobility and heavy, maritime and rail transport.

Its contribution is particularly important in the case of maritime transport, as it allows vessels to adhere to new environmental regulations set forth by the International Maritime Organisation (IMO) and European Directive 2016/802.

As part of our commitment to innovation, at Enagás, we have made technical adaptations to our liquefied natural gas (LNG) plants which are now ready to offer new services related to the role of gas as a fuel, such as bunkering (supplying fuel for ships). In addition, we are promoting these new uses through our coordination in projects such as 'CORE LNGas hive' and 'LNGhive2', as well as through our participation in other projects with European CEF funds in the road and railway field, such as the ECO-net and RAILNG projects and the retrofitting of a freight locomotive to use LNG.

Enagás is committed to decarbonising transport by promoting the use of natural gas and renewable gases

The European Union allocates around 45 million euros to the CORE LNGas hive and LNGhive2 projects, which Enagás is driving through the Connecting Europe Facility (CEF), which promotes more sustainable and efficient transport.

Among other projects, the European Commission supports with 20 million euros the development of two new projects for the supply of LNG to ships (bunkering) in the ports of Barcelona and Algeciras, coordinated by Enagás and developed by its subsidiary Scale Gas. These projects are part of the 'LNGhive2' institutional strategy, managed by Puertos del Estado, aimed at promoting the development of the LNG market as marine fuel and to ensure supply in ports, in compliance with European Directive 2014/94 on alternative fuels.

In the railway sector, Enagás was one of the companies to participate in the first pilot test in Europe for railway traction using LNG. And as part of the implementation of the Railway Roadmap set out with Renfe, it is working with all segments of rail traction to retrofit diesel vehicles for natural gas in business areas where electrification would be unprofitable.

Enagás is currently developing several projects: the 'BIORAIL' project, whose objective is to test different motorisation technologies with a mixture of renewable gas and hydrogen; the 'Dual mode H2 Train' project, together with Renfe and several partners, for the introduction of the fuel cell for railway traction and its supply chain; and finally, a railcar that has been converted to use LNG is also being adapted for use with biomethane.

Renewable hydrogen is a new energy vector that offers countless possibilities for energy consumption, storage and mobility. It is a real, clean and sustainable alternative to traditional energy sources and therefore, using it as a vehicle fuel also helps towards sustainable mobility.

Within the terrestrial field, the start-up 'Scale Gas' (see the 'Corporate entrepreneurship and open innovation' sub-section in this chapter) is participating in the EU-supported project 'ECO-net', for the construction of 15 LNG supply points integrated into the existing traditional fuel supply network, with the aim of integrating natural gas as another fuel in the energy mix. In addition, in 2021, Scale Gas unveiled the first hydrogen refuelling station in Spain in Madrid. It has a supply capacity of 700 bar and is currently supplying hydrogen to a range of users, including heavy-duty VTC vehicles.

[GRI 203-1, GRI 203-2]

Innovation and corporate venture

As key part of its strategy, which will be carried out within a future Innovation Plan, Enagás has put in place a programme of corporate entrepreneurship and open innovation for the purpose of supporting and fostering new ideas and business projects which, in accordance with our strategy for promoting decarbonisation and guaranteeing security of supply, will enable us to create value and diversify the business. This programme allows us to gain an early foothold in disruptive technologies and start-ups that are aligned with the improvement of efficiency, competitiveness and sustainability in the energy sector against the current backdrop of energy transition.

The 'Enagás Emprende' initiative seeks projects inside and outside the company related to Enagás' future strategy to drive the energy transition through new business models and disruptive technologies. It is structured along the following lines:

• Corporate entrepreneurship/Venture Building: development of business projects and ideas based on Enagás' technical, economic and market-related skills.
• Venture Capital: investment and support of start-ups, both directly and through investment funds.
• Open Innovation: incorporation of projects and technologies supported by capabilities external to Enagás, through origination tools, the entrepreneurial ecosystem, innovation radar and prospecting reports, among other strategies.

'Enagás Emprende' studies and analyses each proposal individually and offers incubation and acceleration programmes tailored to the needs of each project. These can include financial resources, technical pilots, co-development, support in commercial development, or other forms of support.

For the development of all these initiatives, whenever possible, subsidies, favourable financing and tax deductions will be sought to help facilitate innovation initiatives.

Enagás Emprende also promotes and coordinates cross-cutting projects to transform the company in key areas through innovation, such as the Flagship Projects (alliances between several organisations with the aim of promoting new technologies in an area of common interest using open innovation tools and public funding for innovation).

12/2022

Enagás was recognised as Open Innovation Challenger at the ICC (International Chamber of Commerce) "Corporate Start-up Stars Awards". The company was named among the top 100 in the world for its work in open innovation and start-up development.

Enagás Emprende investment verticals in 2022

For further details on the Enagás Emprende Programme, visit the corporate website

Thanks to the support of 'Enagás Emprende', the following Corporate Entrepreneurship projects have become start-ups.

of the natural gas sector in Spain and Portugal.

Start-up offering consulting services in high precision gas detection and quantification. It assists their customers to comply with environmental laws and regulations, improve their carbon footprint and achieve greater efficiency in their business operating processes. Since 2020, the technology engineering company INERCO has been its majority partner.

www.viragasimaging.com

Start-up with innovative patented technology based on environmentally-friendly cold recovery in the natural gas refrigeration process. Made to encourage large cold-consuming companies to locate themselves near LNG plants. Its ongoing projects notably include its work at the Barcelona regasification plant (together with the Barcelona City Council, Ecoenergies and Veolia as customers), the aim of which is to use the plant's LNG energy to supply the port and the nearby residential area with environmentally friendly cooling, which would result in economic savings of up to 50% and CO2 savings of up to 90%.

A start-up that invests in small/medium-scale natural gas/LNG infrastructure (bunkering, service stations, vehicular natural gas, etc.) and renewable gas, as well as in design, execution, operation and maintenance for third parties, commercialising its experience and providing logistics services. This start-up has become a shareholder in the regasification plant in Ravenna (Italy) to collaborate in the development of small-scale LNG in the Mediterranean. It has launched 13 natural gas vehicle refuelling stations and one hydrogen refuelling station, with a development plan to reach 16 natural gas vehicle refuelling stations and 15 hydrogen refuelling stations by 2026. In 2022, this company was incorporated as a business line of the Enagás Group.

Support services to traders in the daily operations in MIBGAS (Iberian Gas Market), acting as the representative agent managing the integral operations of the shippers. Provides services throughout the value chain, ranging from obtaining a licence to ship gas in Spain to back office services, reporting to official entities and training on the gas system. It has more than 60 customers. Sercomgas is the leading company in the provision of consultancy and support services in the operation

www.sercomgas.com

A start-up that develops, manufactures and markets small and medium-scale hydrogen generators by electrolysis using its own PEM (Proton Exchange Membrane) technology, and which also offers associated operation and maintenance services.

www.h2greem.com

In addition to the aforementioned internal projects, 'Enagás Emprende' has also supported nine external start-ups as an investor and has backed the creation of two investment funds to promote the energy transition.

External start-ups

www.seabenergy.com	English circular economy start-up that designs and markets small-scale biogas plants for installation in buildings, using organic waste generated on site to transform it into green energy, water and fertiliser.
www.dualmetha.com	French start-up with proprietary patented technology for modular biogas plants that manage multiple types of waste, mainly agricultural; the objective of which is to generate biomethane to inject into the gas network.
www.hygengroup.com	Latvian start-up that has developed a compressed natural gas fuelling system that allows the rapid refuelling of vehicles in situ. Hygen's compressors are based on a patented technology that provides greater durability and reliability.
www.trovanttech.com	Start-up with proprietary biomethane upgrading technology. Its aim is to develop technologies based on biological processes for the treatment and re-use of organic waste, to turn it into valuable products. It has partners such as Repsol, FACSA and Easo Ventures.
www.solatom.com	A start-up that designs, develops and installs solar modules that are easy to transport and install for industries. These give them the ability to provide a sustainable and economical alternative to the fossil fuel boilers currently used in factories.
www.satlantis.com	Start-up which has developed a new generation of high resolution binocular optical cameras for satellites. Its technological roadmap is focused on the creation of GEI-SAT constellation and the provision of value-added services to third parties based on the data and images obtained.
	Finnish-Swiss start-up that has developed a microbiological method that uses waste with high

www.ductor.com

energy potential and high levels of nitrogen to make biogas and organic fertiliser for sale.

www.basquevolt.com

Spanish public-private initiative start-up, backed by the Basque Government and CICenergiGUNE, that aims to become the first European gigafactory to develop solidstate batteries. It aims to cover 10% of the European market and was named as one of the "20 Most Innovative Companies to Watch" in 2022 by the Business Worldwide magazine.

Start-up developed through venture building jointly with the company Repsol for the development, industrialisation and commercialisation of patented photoelectrocatalysis (PEC) technology for the generation of renewable hydrogen.

www.sunrgyze.com

Investment funds:

Venture Capital Fund backed by Enagás and Alantra to boost the ecological transition and decarbonisation. In 2022, fund-raising was definitively closed with a total commitment of 210 million euros, with the entry of investors such as the European Investment Fund, Fonditel and the Canadian fund CPPIB, among others.

'Infra Venture' global hydrogen fund with the objective of accelerating global hydrogen development with industrial and energy investors. Enagás participated together with two other European TSOs: Snam and GRTgaz. In 2022, this fund purchased a 30% stake in Enagás Renovable.

2022

In 2022, the flagship project Green2TSO was launched with the aim of accelerating the hydrogen transformation of the transmission network through new technologies and innovation projects. This project is being carried out together with other TSOs such as REN, Teréga and GRTgaz.

Enagás continues along the path of digital transformation, which it has been following for the last few years. In 2022, a new, more ambitious Global Digital Plan was drawn up in line with the company's strategy, with a special focus on security of supply and reinforcing cybersecurity.

In this regard, the development of digital products has been proposed; these will be used to continue modernising the systems through the construction of digital platforms that allow for the flexibility and scalability of these products. The architecture will be based on data, democratised and governed to improve the company's decision-making, and valuing these products as highly as any other industrial assets.

See the Data Governance Policy on the corporate website

In addition, we will work on the technological innovation model that allows us to continuously improve our systems, adapting them to business needs and market standards in an agile way and capturing returns by scaling solutions. All this within a framework of collaboration with the company's internal innovation and the future Innovation Plan and in a way which, at the same time, allows us to attract funding for digitalisation.

Technological innovation

Technological innovation at Enagás is focused on two areas: [GRI 203-1]

• Evolution of the gas infrastructure in line with the decarbonisation of the energy system, considering the inclusion of hydrogen and other renewable gases in a pure or mixed state in the company's infrastructures. In this field, collaboration projects with other TSOs and companies such as 'GreenH2Pipes', 'HYREADY', 'The Next Pangea' and 'Opthycs' (part of the Green2TSO project) stand out.
• The improvement of various aspects of the company's current activity, such as natural gas and hydrogen metering, operational safety, the equipment and materials necessary for its activity, energy efficiency, technical efficiency, renewable gas or digitalisation. In 2022, the continuation of the project for new compressor units with the aim of reducing primary energy consumption and reducing greenhouse gas emissions (see the 'Targets and roadmap to decarbonisation' section in this chapter).

In 2022, the amount invested in technological innovation amounted to 8.86 million euros, an increase in investment of 38% over 2021. 64% of the investment in technological innovation corresponds to projects related to energy efficiency and 29% to renewable energy.

64% of the investment in technological innovation corresponds to projects related to energy efficiency

⁶ This figure comprises the costs associated with the approved projects (amount entered as R&D expenses in the 'Other operating expenses' section of the Consolidated Annual Accounts), procurement of R&D, personnel expenses and the purchase of equipment and instruments.

Sustainable finance

Financing linked to sustainability

Enagás has part of its financing linked to decarbonisation targets. From 2019, the price of the syndicated loan has been linked to meeting the company's CO2 emission reduction targets.

During 2022, work was carried out on the renewal of this loan, for which the emission reduction targets linked to the credit were revised and extended (changes validated through a Second Party Opinion):

• The 2025 targets have been revised in line with the new operating context brought about by the energy crisis (see the 'Climate action and energy efficiency' section in the 'Environmental, social and governance (ESG) management' chapter).

European Taxonomy for Sustainable Activities (contribution to climate change mitigation)

In the framework of the EU Sustainable Finance Action Plan, the EU Taxonomy for Sustainable Activities was developed (Regulation 2020/852 and associated legislation7). It aims to establish criteria for determining whether an activity is considered environmentally sustainable for the purpose of determining the degree of environmental sustainability of an investment and to facilitate the use of a common concept of socially sustainable investment by Member States and the European Union.

To date, the technical selection criteria for determining the conditions under which an economic activity is taken to represent a substantial contribution to climate change mitigation and climate change adaptation targets have been established, pending the publication of the delegated regulation detailing the technical criteria associated with the other four environmental objectives (sustainable use and protection of water and marine resources; the transition to a circular economy; pollution prevention and control; and protection and restoration of biodiversity and ecosystems).

In addition, the European Commission has published several communications on the interpretation of the legal provisions (FAQs) included in the delegated regulations, which have contributed to the interpretation of the implementing legislation. However, the current regulatory framework is under development, which implies a continuous review of the criteria and methodologies established by the company to respond to the established requirements.

Eligibility and alignment concepts

An activity is considered eligible when it has the potential to substantially contribute to climate change mitigation or adaptation, while an activity is considered aligned when it meets the criteria of substantial contribution, do no significant harm (DNSH) and the minimum social safeguards set out in the taxonomy regulation, which ensure that the activity is carried out in compliance with characteristics that ensure a contribution to the environmental targets set by the European Union.

• • Targets have been added to 2026 and 2027, in line with the objectives of the company's 2030 Strategic Plan (see the '2030 Strategic Plan' section in this chapter).
• Scope 3 emission reduction targets have been added in line with the targets set by the company for 2030 and 2040 (see the 'Targets and roadmap to decarbonisation' section in this chapter).

In this regard, Enagás has signed the extension of the maturity of this syndicated credit line of 1,550 million euros until 2028 with 12 financial institutions, maintaining its commitment to link the economic conditions to compliance with environmental indicators for the reduction of CO2 emissions, in line with the targets and roadmap to decarbonisation (see the 'Targets and roadmap to decarbonisation' section in this chapter).

Assessment of the eligibility of Enagás' activities

The eligible activities identified by Enagás have the potential to contribute to the climate change mitigation objective and are associated with the area of renewable gases: mainly the adaptation of infrastructure to be able to transport these renewable gases, the construction of hydrogen transmission and distribution pipelines and hydrogen storage (see the 'Our commitment to the energy transition' chapter).

• Activity 4.14. Transmission and distribution networks for renewable and low-carbon gases: Enagás, an independent European TSO, is an international benchmark in the development and maintenance of gas infrastructures and the operation and management of gas networks. In line with one of the growth axes of the 2030 Strategic Plan, Enagás is working on the renewal of gas transmission and distribution infrastructures to promote the integration of hydrogen and other lowcarbon gases and on the construction of new transmission and distribution networks for hydrogen and other low-carbon gases. Enagás considers all of its gas transmission activity eligible given the potential for such infrastructure to be dedicated to the transmission of renewable and low-carbon gases in the future.
• Activity 4.12. Storage of hydrogen: Enagás has three underground natural gas storage facilities. In line with one of the growth axes of the 2030 Strategic Plan, Enagás is currently working on the conversion of these infrastructures into hydrogen storage facilities and the construction of new facilities. Enagás considers all of its gas storage activity eligible given the potential for such infrastructure to be dedicated to the storage of renewable and low-carbon gases in the future.
• Activity 6.15. Infrastructure enabling low-carbon road transport and public transport: Enagás' subsidiary ScaleGas has a 700 bar HRS (Hydrogen Refuelling Station) with the capacity to supply hydrogen-powered electric vehicles in Madrid (Spain). This activity is eligible, as the hydrogen refuelling station is considered to be an infrastructure for the circulation of vehicles with zero CO2 exhaust emissions.
• Activity 4.1. Electricity generation using solar photovoltaic technology: Enagás considers eligible projects aimed at generating electricity through

⁷ Delegated Regulation (EU) 2021/2139, Delegated Regulation (EU) 2021/2178 and Delegated Regulation (EU) 2022/1214.

photovoltaic panels for self-consumption at some of its facilities, thus improving energy efficiency and reducing greenhouse gas emissions.

• Activity 3.10. Manufacture of hydrogen: Enagás considers as eligible the renewable hydrogen manufacture projects for self-consumption that it develops at some of its facilities, thus enabling the improvement of energy efficiency and the reduction of greenhouse gas emissions.

In 2022 Enagás has identified eligible activities differently compared to 2021. This change is due to a different interpretation of the technical criteria established by the regulations for each activity following the new associated regulatory publications (clarifications issued by the European Commission regarding the non-consideration of activities linked to companies consolidated under the equity method), as well as the elimination of projects developed by the subsidiary Enagás Renovable, over which Enagás ceased to have control in 2022. Enagás has calculated, for the purpose of better comparability, the key performance indicators for 2021 using this new approach8. [GRI 2-4]

Once the eligible economic activities were identified, for each of them, the projects implemented during the year were identified9.

Assessment of the alignment of Enagás' activities

To assess alignment, it has been analysed whether eligible projects comply with substantial contribution criteria defined in the Delegated Regulation (EU) 2021/2139: selection technical criteria, do not cause significant harm to any of the other environmental objectives, and comply with the established minimum social safeguards.

In order to assess compliance with the requirements set out by the Taxonomy, Enagás has assessed its existing policies, procedures and processes at a corporate level, as well as detailed documentation at project level.

In assessing the substantial contribution criteria of Taxonomy activities '4.14. Transmission and distribution networks for renewable and low-carbon gases' and '4.12. Storage of hydrogen', documents such as the technical reports of the projects have been assessed to ensure that the nature of the projects under consideration complies with the nature of the activity itself, which is the main requirement for assessing compliance. With regard to the projects associated with activity '3.10 Manufacture of hydrogen', it should be noted that these consist of the production of hydrogen for self-consumption. For these projects, the EU Taxonomy regulations requires threshold requirements to ensure greenhouse gas emission reductions. As these are early-stage projects, these requirements have been included in the investment plan to ensure that the design of the hydrogen manufacturing process meets the established thresholds. Activity '4.1. Electricity generation using solar photovoltaic technology' fulfils the criteria, as it is linked to the installation of solar panels to generate electricity for self-consumption. Likewise, activity '6.15 Infrastructure enabling low-carbon road transport and public transport', part of the work of our subsidiary ScaleGas, also meets the criteria, as it is related to enabling hydrogen refuelling stations.

With regard to compliance with the criteria of no significant harm to other targets (DNSH), Enagás has an analysis of the physical climate risks of its current infrastructure and has control and management measures in place to mitigate them, thereby complying with the DNSH criterion for the adaptation objective (see the 'Climate action and energy efficiency' section in the 'Environmental, social and governance (ESG) management' chapter). In relation to other DNSH matters (water and marine resources, circular economy, pollution and biodiversity), although the criteria differ by activity, in general, the company has an ISO 14001-certified environmental management system, takes specific actions in the field of the circular economy, and each project has its own waste management plan, as well as a management model for natural capital and biodiversity. All of this ensures compliance with the requirements of the Taxonomy (see the 'Natural capital and biodiversity' section in the 'Environmental, social and governance (ESG) management' chapter). In addition, most of the facilities where these projects are taking place have received an Integrated Environmental Authorisation or gone through an Environmental Impact Assessment.

Finally, the taxonomy regulation requires the company to carry out its activities in compliance with Minimum Safeguards in terms of human rights, corruption prevention, proper tax management and respect for fair competition. In this regard, the different mechanisms that the company has in place to ensure compliance with these requirements are described throughout this report (see the 'People' 'Ethics and compliance' 'Financial and operational excellence', and 'Human rights' sections in the 'Environmental, social and governance (ESG) management' chapter).

Calculation of key performance indicators

The identification of the key performance indicators for the projects associated with the taxonomic activities has been carried out after the closure of the annual accounting consolidation. Projects have been identified for accounting purposes by project code, thus eliminating the potential risk of double counting. In the analysis of the Enagás Group's key indicators 'Total (A+B)' and by business activity (eligibility and alignment of the activity '4.14. Transmission and distribution networks for renewable and low-carbon gases' and '4.12. Storage of hydrogen'), transactions between Enagás Group companies have not been considered.

It is worth noting that, in line with reporting requirements, in 2021 Enagás only reported information on the percentage of eligible activities of the taxonomic KPIs (revenue, CAPEX and OPEX) contributing to these two environmental objectives, while this year, the percentage of aligned activities of the taxonomic KPIs is also reported.

Based on the organisation's existing formal accounting and consolidation procedures, the different economic indicators detailed in the Taxonomy Regulation have been calculated and prepared, taking into account the considerations detailed below.

⁸ The historical update of eligibility data for 2021 affected all activities reported in 2021. Considering the same reporting scope as in 2022, the recalculated 2021 eligibility values are the following. Associated with activity 4.14: 590.4 million euros turnover (59.6%), 18.2 million euros CAPEX (14.6%), 16.0 million euros OPEX (26.1%). Associated with activity 4.12: 104.4 million euros turnover (10.5%), 18.0 million euros CAPEX (14.4%) and 11.2 million euros OPEX (18.3%). Associated with activity 6.15: 0.1 million euros turnover (0.0%), 0 million euros CAPEX (0.0%) and 0 million euros OPEX (0.0%).

⁹ Enagás only reports activities related to fully consolidated companies in its financial statements. For the purposes of better comparability with future years, the taxonomical activities carried out by Enagás Renovable have not been included, as from June 2022 this subsidiary began to be consolidated under the equity method.

The criteria applied for each activity are detailed below:

• Activity 4.14. Transmission and distribution networks for renewable and low-carbon gases:
  • Turnover: this includes revenues generated from the transmission of hydrogen and other low-carbon gases are allocated here. There is no income from this activity in 2022, as it has not yet started.
  • Capital expenditure (CAPEX): this includes additions to assets related to the renewal of gas transmission and distribution infrastructures to facilitate the integration of hydrogen (including the necessary auxiliary equipment) and other lowcarbon gases and the construction of new transmission and distribution networks for hydrogen or other low-carbon gases by the companies Enagás Transporte S.A.U., Enagás S.A., Enagás Infraestructuras de Hidrógeno, S.L. and Enagás Transporte del Norte S.L. It also includes investment in the studies and research required to adapt the infrastructures. In line with the taxonomy, for those investments related to the retrofitting of auxiliary equipment to support hydrogen transmission, only the proportional volume of the investment that is related to the transmission capacity of hydrogen and low-carbon gases is considered. In relation to projects for the construction of new hydrogen transmission networks, Enagás has an investment plan for 2030 in line with its strategy, and has therefore considered investment in these assets despite their initial nature, as they will be aligned by then.
  • Operating expenses (OPEX): this includes research and development expenses related to the activities of Enagás S.A.
• Activity 4.12. Storage of hydrogen:
  • Turnover: this includes revenues generated from hydrogen storage are allocated here. There is no income from this activity in 2022, as it has not yet started.
  • Capital expenditure (CAPEX): this includes additions to assets related to the conversion of these infrastructures into hydrogen storage facilities and the construction of other hydrogen storage facilities of Enagás Transporte S.A.U. Investment in studies and research necessary for the development of the activity is also included. In line with the taxonomy, for those investments related to the retrofitting of auxiliary equipment to support hydrogen storage, only the proportional volume of the investment that is related to the storage capacity of hydrogen and low-carbon gases is considered.
  • Operating expenses (OPEX): there were no operating expenses associated with this activity during 2022.

As for the denominator, the following information relates to eligibility and alignment.

• Turnover: revenues from regulated and non-regulated activities and other operating revenues of the Enagás Group (See 'Note 2.1.a. Operating profit, Income' of the Consolidated Annual Accounts).
• Capital expenditure (CAPEX): investments in material and intangible fixed assets of the Enagás Group, discounting the effect of IFRS16 accounting standards (See 'Note 2.4. Property, plant and equipment, Supplementary information on IFRS16' and 'Note 2.5. Intangible assets' in the Consolidated Annual Accounts), excluding non-current assets held for sale (8.9 million euros in 2022).
• Operating expenses (OPEX): non-capitalised direct costs that relate to research and development, building renovation measures, short-term leases, maintenance and repairs and other direct expenses related to the day-to-day maintenance of property, plant and equipment assets by the company or a third party to whom activities are outsourced and that are necessary to ensure the continued effective operation of such assets. Wages and salaries of personnel involved in the maintenance of the facilities related to the identified activities have not been included as it is not possible to separate them at the accounting level.

Regarding the numerator,

• Eligible and aligned: information related to projects that conform with the description of activities included in the taxonomy and comply with substantial contribution criteria, principles of no significant harm to other objectives (DNSH) and minimum social safeguards:
  • Turnover: revenues from regulated and non-regulated activities and other operating revenues associated with economic activities that conform to the taxonomy.
  • Capital expenditure (CAPEX): all allocations during the year to identified project assets associated with economic activities that conform to the taxonomy and those investments that are part of a plan to expand economic activities that conform to the taxonomy or to enable taxonomy-eligible economic activities to conform to the taxonomy. All this without considering amortisation, depreciation or value adjustments.
  • Operating expenses (OPEX): includes operating expenses associated with economic activities that conform to the taxonomy, specifically research and development and maintenance expenses.
• Activity 6.15. Infrastructure enabling low-carbon road and public transport:
  • Turnover: revenue generated by the HRS (Hydrogen Refuelling Station) of the company Scale Gas Solutions, S.L. is allocated here.10
  • Capital expenditure (CAPEX): this includes additions to assets related to the HRS, which in 2022 were zero.
  • Operating expenses (OPEX): this includes HRS operating expenses. The following items are included: maintenance, spare parts and telemetry management.
• Activity 4.1. Electricity generation using solar photovoltaic technology:
  • ◦ Turnover: the electricity generated is self-consumed at the company's facilities, and there is no income from this activity.
  • Investments in fixed assets (CAPEX): this includes additions in assets related to solar photovoltaic technology that enable the generation of electricity by the companies Enagás Transporte S.A.U. and Efficiency for LNG Applications, S.L. 10
  • Operating expenses (OPEX): this includes operating expenses associated with the maintenance and repair of photovoltaic power generation assets. There were no operating expenses associated with this activity during 2022.
• Activity 3.10. Manufacture of hydrogen:
  • ◦ Turnover: the renewable hydrogen generated is self-consumed at the company's facilities, and there is no income from this activity.
  • Capital expenditure (CAPEX): this includes additions in assets related to the renewable hydrogen production activity for selfconsumption.
• ◦ Operating expenses (OPEX): this includes operating expenses associated with the maintenance and repair of the renewable hydrogen production assets. There were no operating expenses associated with this activity during 2022.
• Eligible and non-aligned: information relating to projects that fit the description of the activities included in the taxonomy, but after assessment are deemed not to comply with the criteria of substantial contribution or the principles of do no significant harm (DNSH) to other goals.
  • Turnover, capital expenditure (CAPEX) and operating expenses (OPEX): proportion of the denominator of the company's activity that is eligible but does not meet the criteria to fit the taxonomy. This includes the part of the project KPIs associated with the activities 'Activity 4.14. Transmission and distribution networks for renewable and low-carbon gases' and 'Activity 4.12. Storage of hydrogen', both associated to the transmission and storage of natural gas and considered eligible given their potential for such infrastructure to be dedicated to the transmission and storage of renewable and low carbon gases in the future. However, these projects do not currently meet any of the technical criteria, and are therefore not aligned.

Details of the key performance indicators in the framework of the European Taxonomy for Sustainable Activities are given below.

In 2022, Enagás allocated 52.9% of its investment in fixed assets to activities with the potential to contribute to climate change mitigation (eligible activities)

¹⁰In line with the provisions of the 'About our Consolidated Management Report' section on the scope of financial and non-financial information, the financial information of this company is included.

Turnover					Substantial contribution criteria			No significant harm criteria ("Do no significant	harm")
Economic activity	Co de (s ) ( 2)	Ab so lu te t ur no ve r ( 3) Euros	Sh ar e of t ur no ve r ( 4) %	Cl im at e ch an (5 ge ) m iti ga tio n %	Cl im at e ch an (6 ge ) a da pt at io n %	Cl im at e ch an (1 ge 1) m iti ga tio n	Cl im at e ch an (1 ge 2) a da pt at io n	W at er a nd m (1 ar 3) in e re so ur ce s (Y/N) (Y/N) (Y/N) (Y/N) (Y/N) (Y/N) (Y/N)	Ci rc ul ar e co no m y (1 4)	Po llu tio n (1 5)	Bi od iv er si ty a (1 nd 6) e co sy st em s	M in im um s af eg ua rd s (1 7)	Ta of xo t ur no no m y- ve co r i m n pl 20 ia 22 nt ( s 18 ha ) re %	Ca te go ry ( en (2 ab 0) lin g ac tiv ity ) F	Ca te ac go tiv ry ( ity tr ) an (2 si 1) tio na l T
A. ELIGIBLE ACTIVITIES ACCORDING TO THE TAXONOMY
A.1.Environmentally sustainable activities (conforming to the taxonomy)
Transmission and distribution networks for renewable and low carbon gases	4.14	0	0.0%	0.0%	0.0%	N/A	Y	Y	N/A	Y	Y	Y	0.0%
Storage of hydrogen	4.12	0	0.0%	0.0%	0.0%	N/A	Y	N/A	Y	Y	Y	Y	0.0%	F
Infrastructure enabling low-carbon road and public transport	6.15	115,753	0.0%	100%	0.0%	N/A	Y	Y	Y	Y	Y	Y	0.0%	F
Electricity generation using solar photovoltaic technology	4.1	0	0.0%	0.0%	0.0%	N/A	Y	N/A	Y	N/A	Y	Y	0.0%
Manufacture of hydrogen	3.10	0	0.0%	0.0%	0.0%	N/A	Y	Y	N/A	Y	Y	Y	0.0%
Turnover from environmentally sustainable activities (conforming to the taxonomy) (A.1)		115,753	0.0%	100% 0.0%									0.0%

A.2. Activities eligible according to the taxonomy but not environmentally sustainable (activities that do not conform with the taxonomy)

Transmission and distribution networks for renewable and low carbon gases	4.14	559,718,891	57.7%
Storage of hydrogen	4.12	107,839,000	11.1%
Turnover from taxonomy-eligible but not environmentally sustainable activities (activities that do not comply with the taxonomy) (A.2)		667,557,891	68.8%
Total (A.1 + A.2)		667,673,644	68.8%
B. INELIGIBLE ACTIVITIES ACCORDING TO THE TAXONOMY
Turnover from ineligible activities according to taxonomy (B)		302,635,356	31.2%

CAPEX					Substantial contribution criteria				No significant harm criteria ("Do no significant harm")
Economic activities	Co de (s ) ( 2)	Ab so lu te C A PE X (3 )	Sh ar e of C A PE X (4 )	Cl im at e ch an (5 ge ) m iti ga tio n	Cl im at e ch an (6 ge ) a da pt at io n	Cl im at e ch an (1 ge 1) m iti ga tio n	Cl im at e ch an (1 ge 2) a da pt at io n	W at er a nd m (1 ar 3) in e re so ur ce s	Ci rc ul ar e co no m y (1 4)	Po llu tio n (1 5)	Bi od iv er si ty a (1 nd 6) e co sy st em s	M in im um s af eg ua rd s (1 7)	Ta xo of C no A m PE y- X co in m 2 pl 02 ia 2 nt (1 s 8) ha re	Ca te go ry ( en (2 ab 0) lin g ac tiv ity )	Ca te ac go tiv ry ( ity tr ) an (2 si 1) tio na l
A. ELIGIBLE ACTIVITIES ACCORDING TO THE TAXONOMY		Euros	%	%	%				(Y/N) (Y/N) (Y/N) (Y/N) (Y/N) (Y/N) (Y/N)				%	F	T
A.1.Environmentally sustainable activities (conforming to the taxonomy)
Transmission and distribution networks for renewable and low-carbon gases	4.14	3,398,741	5.8%	5.8%	100%	N/A	Y	Y	N/A	Y	Y	Y	5.8%
Storage of hydrogen	4.12	770,952	1.3%	1.3%	100%	N/A	Y	N/A	Y	Y	Y	Y	1.3%	F
Infrastructure enabling low-carbon road and public transport	6.15	0	0.0%	0.0%	0.0%	N/A	Y	Y	Y	Y	Y	Y	0.0%	F
Electricity generation using solar photovoltaic technology	4.1	1,379,271	2.4%	2.4%	100%	N/A	Y	N/A	Y	N/A	Y	Y	2.4%
Manufacture of hydrogen	3.10	375,109	0.6%	0.6%	100%	N/A	Y	Y	N/A	Y	Y	Y	0.6%
CAPEX from environmentally sustainable activities (conforming to the taxonomy) (A.1)		5,924,073	10.1%	10.1%	100%								10.1%
A.2. Activities eligible according to the taxonomy but not environmentally sustainable (activities that do not conform with the taxonomy)
Transmission and distribution networks for renewable and low-carbon gases	4.14	14,355,318	24.54%
Storage of hydrogen	4.12	10,769,419	18.3%
CAPEX from activities eligible according to the taxonomy but not environmentally sustainable (activities that do not conform with the taxonomy) (A 2)		25,124,737	42.8%
Total (A.1 + A.2)		31,048,810	52.9%										10.1%
B. INELIGIBLE ACTIVITIES ACCORDING TO THE TAXONOMY
CAPEX from ineligible activities according to taxonomy (B)		27,666,103	47.1%

OPEX					Substantial contribution criteria				No significant harm criteria ("Do no significant harm")
Economic activities	Co de (s ) ( 2)	Ab so lu te O PE X (3 ) Euros	Sh ar e of O PE X (4 ) %	Cl im at e ch an ge m iti ga tio n (5 ) %	Cl im at e ch an (6 ge ) a da pt at io n %	Cl im at e ch an (1 ge 1) m iti ga tio n	Cl im at e ch an (1 ge 2) a da pt at io n	W at er a nd m (1 ar 3) in e re so ur ce s	Ci rc ul ar e co no m y (1 4) (Y/N) (Y/N) (Y/N) (Y/N) (Y/N) (Y/N) (Y/N)	Po llu tio n (1 5)	Bi od iv er si ty a (1 nd 6) e co sy st em s	M in im um s af eg ua rd s (1 7)	Ta xo no O PE m y- X co in 2 m 02 pl ia 2 nt (1 s 8) ha re o f %	Ca te go ry ( en (2 ab 0) lin g ac tiv ity ) F	Ca te ac go tiv ry ( ity tr ) an (2 si 1) tio na l T
A. ELIGIBLE ACTIVITIES ACCORDING TO THE TAXONOMY
A.1.Environmentally sustainable activities (conforming to the taxonomy)
Transmission and distribution networks for renewable and low-carbon gases	4.14	40,937	0.1%	100%	0.0%	N/A	Y	Y	N/A	Y	Y	Y	0.1%
Storage of hydrogen	4.12	0	0.0%	0.0%	0.0%	N/A	Y	N/A	Y	Y	Y	Y	0.0%	F
Infrastructure enabling low-carbon road and public transport	6.15	15,582	0.0%	100%	0.0%	N/A	Y	Y	Y	Y	Y	Y	0.0%	F
Electricity generation using solar photovoltaic technology	4.1	0	0.0%	0.0%	0.0%	N/A	Y	N/A	Y	N/A	Y	Y	0.0%
Manufacture of hydrogen	3.10	0	0.0%	0.0%	0.0%	N/A	Y	Y	N/A	Y	Y	Y	0.0%
OPEX from environmentally sustainable activities (conforming to the taxonomy) (A.1)		56,519	0.1%	100%	0.0%								0.1%
A.2. Activities eligible according to the taxonomy but not environmentally sustainable (activities that do not conform with the taxonomy)
Transmission and distribution networks for renewable	4.14	18,087,623	25.1%
and low-carbon gases Storage of hydrogen	4.12	11,565,212	16.0%
OPEX from activities eligible according to the taxonomy but not environmentally sustainable (activities that do not conform with the taxonomy) (A.2)		29,652,835	41.1%
Total (A.1 + A.2)		29,709,354	41.2%										0.1%
B. INELIGIBLE ACTIVITIES ACCORDING TO THE TAXONOMY
OPEX from ineligible activities according to taxonomy (B)		42,489,717	58.8%
Total (A + B)		72,199,071	100.0%

The results of the taxonomy analysis reflect the company's potential to contribute to the climate change mitigation objective by transforming its business to conform to the taxonomy. In line with the aim of decarbonising the energy system and the company's new strategy, Enagás is investing in assets and projects (CAPEX) that enable the transmission and storage of hydrogen through the construction of new infrastructures and the adaptation of existing ones. All this with the aim of generating future income through activities that conform to the taxonomy.

Enagás is advancing with the development of hydrogen infrastructures and other sustainable activities with 10.1% of investment in fixed assets aligned with the EU Taxonomy Regulation

In addition, Enagás, through its affiliates over which it has no operational control, has the potential to contribute to climate change mitigation through other activities such as:

• Activity 3.10. Manufacture of hydrogen. Through projects such as Enagás Renovable's Power to Green Hydrogen Mallorca, among others.
• Activity 5.7. Anaerobic digestion of biowaste. Through projects such as Enagás Renovable's UNUE, among others.
• Activity 4.1. Electricity generation using solar photovoltaic technology. Through projects such as Enagás Renovable's Power to Green Hydrogen Mallorca, among others.
• Activity 4.3. Electricity generation from wind power: Through projects such as Windmusel.
• Activity 3.1. Manufacture of renewable energy technologies. Through start-ups such as DualMetha, SEAB Energy, Solatom and Trovant.
• Activity 3.2. Manufacture of equipment for the production and use of hydrogen. Through start-ups such as H2green.

Control measures established by Enagás in the framework of the EU Taxonomy Report

In order to meet all the reporting requirements defined in the Taxonomy Regulation, Enagás has defined an environmental taxonomy reporting procedure which sets out a methodology for preparing the annual eligibility and alignment exercise through the collection of the necessary information. In this process, and in order to ensure compliance with the disclosure standards, the financial area is mainly involved in extracting the financial information and ensuring its equivalence with the Consolidated Annual Accounts. The infrastructure and sustainability areas are mainly involved in identifying projects and assessing their compliance with the Taxonomy Regulation requirements.

In addition, Enagás has included in its Non-Financial Information Control System the reporting cycles for the key performance indicators required by the Taxonomy Regulation that are most relevant to Enagás (CAPEX and OPEX). This entails assigning responsibilities in the calculation and reporting of indicators, as well as defining and implementing controls that improve the segregation of duties and reduce the risk of completeness and accuracy of information as well as the risk of non-compliance with regulations.

Sustainability

Sustainability Strategy

chapter

The Enagás Sustainability Strategy supports the company's strategy, and is linked to short and long-term variable remuneration of our professionals.

In 2022, Enagás updated its Sustainability Strategy, reflecting the central role of sustainability in its 2030 Strategic Plan through decarbonisation and the energy transition as key levers to move towards a more sustainable energy model. The new Sustainability Strategy identifies the following drivers:

Sustainability drivers

Decarbonisation of our operations and our value chain

We speed up climate action by focusing on the development of renewable gases, energy efficiency and emission reductions, while preserving natural environments and their biodiversity.

See the 'Climate action and energy efficiency' and 'Natural capital and biodiversity' sections of the 'Environmental, social and governance (ESG) management' chapter and the 'Renewable gases' and 'Sustainable mobility' sub-sections in this

Transformation with a focus on people

We promote cultural and people transformation through: the development of new profiles and capabilities; strategic talent management that promotes new values, diverse and inclusive ecosystems and ensures commitment; an organisation with professionals who promote new ways of working; and a culture of safety with mechanisms for flexibility, physical and emotional well-being for the professionals.

See the 'People' section of the 'Environmental, social and governance (ESG) management.' chapter.

Governance to ensure due diligence on human rights and the environment

We develop a governance model that ensures sustainability due diligence, with a focus on human rights and the environment, both in our activities and in those of our value chain, with a special focus on our affiliates and our supply chain.

See the 'Affiliates', 'Supply chain' and 'Human rights' sections of the 'Environmental, social and governance (ESG) management' chapter.

Contribution to the SDG

Enagás, as a leading company in sustainability, is committed to the achievement of the Sustainable Development Goals, which represent the Agenda for Humanity 2030 and which address several fundamental human rights.

At Enagás, we have identified and prioritised the Sustainable Development Goals (SDG) to which we contribute directly, both through our key business activities and our Sustainability Strategy (see the 'Our commitment to the energy transition' chapter):

	Our contribution	Targets linked to variable remuneration, commitments and degree of progress
Ensure access to affordable, reliable, sustainable and modern energy for all	We work on new energy solutions for a low carbon economy, such as renewable gases: hydrogen and biomethane. We also work on energy efficiency and emissions reduction, promoting, among others, natural gas in transport.	Targets. We have set targets for investment in the development of renewable gases and reduction of emissions linked to the variable remuneration of our professionals (see the 'Targets linked to variable remuneration' sub-section in this chapter). We have also set ambitious long-term emission reduction targets that constitute our path towards carbon neutrality in line with the European Union's commitment (see the 'Climate action and energy efficiency' section in the 'Environmental, social and governance (ESG) management' chapter).
Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation	Our purpose is to improve the competitiveness of the countries in which we operate, and contribute to the energy transition and decarbonisation process by developing and managing energy infrastructures, and by repurposing them to make them sustainable.	Degree of progress and impact. The energy efficiency measures implemented in recent years enable us to minimise our carbon footprint. We have also contributed to the reduction of third-party emissions: • The use of liquefied natural gas (LNG) in ships reduces CO2 emissions by 18%. Within the framework of the LNGasHIVE project (see the 'Sustainable mobility' sub-section in this chapter), it is estimated between 2-4 million tonnes of CO2 will be avoided in 2030. • The use of natural gas in the rail sector will reduce transport emissions
Take urgent measures to combat climate change and its impacts	Energy efficiency is a key area for Enagás. We continue to work and set targets for reducing emissions and energy intensity at each of our facilities.	by 20% by recovering traffic from road transport. • Enagás also promotes the development of renewable gases, which will contribute to the total decarbonisation of all these uses and increase the economic competitiveness derived from the use of existing infrastructures for hydrogen transmission (see the 'Renewable gases' sub-section in this chapter).

		Our contribution	Targets linked to variable remuneration, commitments and degree of progress
Achieving gender equality and empowering all women and girls		We promote projects to identify and develop talent in women, which are gradually allowing the company to increase the presence of women in its workforce and in management positions.	Targets. We have set targets for increasing the presence of women on the Board of Directors, in managerial and pre-managerial positions, and for the promotion of women to managerial and pre-managerial positions. All of these targets are linked to the variable remuneration of our professionals (see the 'Targets linked to variable remuneration' sub-section in this chapter).
			We also have clear commitments to people and diversity, which are
Promote inclusive and sustainable	We believe people and culture play a key role in	reflected in our Human Capital Management Policy and our Diversity Policy.
economic growth, employment and decent work for all		allowing us to meet our targets. In this sense, we are focused on attracting and retaining the best talent, and creating working environments that enable us to continue to transform ourselves and bring about creative solutions in order to form part of a more sustainable future.	Degree of progress and impact. Our progress in these areas is reflected in the gradual increase in the percentage of women at different levels of the organisation as well as in the recognition obtained both in terms of gender equality and work-life balance, diversity and talent management (see the 'People' section in the 'Environmental, social and governance (ESG) management' chapter).

Likewise, with our management models we contribute to the achievement of other SDG such as:

• SDG 3 (Health and well-being): The management of the health and well-being of our employees is a key area of action for the company. Enagás is certified as a Healthy Company according to the protocol of the World Health Organisation (see the 'Health and safety' section of the 'Environmental, social and governance (ESG) management' chapter).
• SDG 15 (Terrestrial ecosystems): Managing natural capital is one of the most relevant aspects for Enagás. We control and minimise our impact on the environment, improving the use of natural resources and developing measures aimed at biodiversity conservation (see the 'Natural capital and biodiversity' section in the 'Environmental, social and governance (ESG) Management' chapter).
• SDG 17 (Partnerships): Dialogue and collaboration with our stakeholders allow us to establish partnership for the creation of shared value and, therefore, to achieve the objectives set.

As a result of Enagás' commitment to achieving the SDG, the company conducts awareness campaigns on the subject and includes the SDG in several of its face-to-face training courses for professionals (Sustainability and Value Chain courses).

Throughout the 'Environmental, Social and Governance (ESG) Management' chapter, we include best practices aligned with the SDG mentioned in this chapter.

09/2022

Enagás has launched a new initiative that encourages its professionals to build more sustainable habits through the completion of weekly challenges aligned with the SDG. This campaign aims to involve all its professionals and to promote and reinforce the culture of sustainability among employees.

Enagás encourages its professionals to build more sustainable habits through the completion of challenges aligned with the Sustainable Development Goals

Ranking on indices and certifications

The recognitions awarded to the Enagás Strategy and Sustainable Management Model are detailed below.

Position
Sustainability
Enagás has been a member of the United Nations Global Compact since 2003. The Progress Report has been at GC Advanced Level since 2011. The company has also been listed on the Global Compact 100 index since 2013.	Since 2008, the Annual Report has been externally audited and drafted under standard AA1000AP (2018) and the Global Reporting Initiative (GRI) Standards, including the Oil and Gas Sector Standard 2021. It also follows the principles of integrated reporting set out by the International Integrated Reporting Committee (IIRC) and the SASB (Sustainability Accounting Standards Board) reporting standard for the Oil & Gas - Midstream sector.
Enagás has been a member of the Dow Jones Sustainability Index World (DJSI) in the Gas Utilities sector since 2008. In addition, with 88 points out of 100, Enagás was ranked in the Top 5% of its sector in the S&P Global Sustainability Yearbook.	Enagás has been a member of the MSCI Global Sustainability Indices since 2010, with an AA rating in 2022.
Enagás has been a member of the FTSE4Good index since 2006, and holds the highest ASG rating in its sector in 2023.	Enagás has held ISS's B Prime rating since 2010.

Quality, excellence and innovation

Enagás holds ISO 9001 certification for its processes of technical management of the system, asset management, infrastructure development and information systems management. The company also holds SSAE 18 certification for Security of Supply of the System/Technical Management of Underground Storage Facilities Systems.

Our Central Laboratory, whose objective is to contribute to the development of new technologies to improve Enagás' activity and the industry, has three specialised laboratories accredited by the Spanish National Accreditation Body, ENAC.

Enagás has been awarded the Haz Foundation's three-star seal, the highest category in Fiscal Responsibility.

Environment

Enagás has been listed in CDP's Climate Change and Water Security rankings since 2009.

Enagás holds the ISO 14001 certification for its Gas Transmission and Storage Infrastructure Development processes, its asset management, the Enagás Central Laboratory and the corporate head office. In addition, the Huelva and Barcelona plants and the Serrablo and Yela storage facilities have EMAS verification.

Since 2019, the Energy Management System of the companies Enagás, S.A. and Enagás Transporte, S.A.U. is certified according to ISO 50001.

Since 2021, Enagás holds the Zero Waste certification in accordance with AENOR's specific regulations for Enagás, S.A. and Enagás Transporte, S.A.U. companies.

Social

Since 2007, we have been certified as a 'Family-Responsible Company' under the FRC management model of the Masfamilia Foundation. In 2022, we obtained the highest rating in work-life balance ('A+ Level of Excellence'), making us the first public utility company in Spain to receive this recognition.

Since 2009, Enagás has been recognised as a Top Employer in Spain, one of the best companies to work in.

Enagás maintains its leadership in the main sustainability indices, notably the Dow Jones Sustainability Index World, in which it remains for the 15th consecutive year with one of the highest scores in its sector and the Top 5% S&P Global ESG Score 2022

Sustainable Management Model

[GRI 2-14, GRI 2-12, GRI 2-13]

The Enagás Sustainable Management Model establishes the company's responsibilities as regards sustainability governance and defines the assessment tools for identifying the lines of action that are set out in the Sustainable Management Plan.

The Sustainability and Appointments Committee is the highest body with responsibility for sustainability (economic, environmental and social impacts). The Sustainability Committee, made up of members of the Executive Committee, reports to this committee and is responsible for approving initiatives in this matter (by delegation from the Sustainability and Appointments Committee). Both bodies meet at least twice a year.

At executive level, the Chief Executive Officer is responsible for managing the company's business, and is responsible for driving the company forward and the ongoing coordination of its activities.

Under the umbrella of the Chief Executive Officer and as a general rule, the Finance Department is responsible for managing financial matters, while the Energy Transition General Management handles climate and environmental matters, and the People and Transformation General Management, social matters.

See the Sustainability and Good Governance Policy on the corporate website.

Sustainable Management Model

Materiality analysis and stakeholder management

Enagás defines its stakeholder map by identifying the different groups that are influenced by and exert influence on the company's activities, based around the company's Strategy. Every year, internal supervisors at Enagás review these groups and their segmentation, the relationship channels with each of them, according to the company's strategy and organisational model. By this means, the stakeholder relationship model is defined: [GRI 2- 29, GRI 3-1, GRI 207-3]

Enagás establishes processes of dialogue and collaboration with our stakeholders to identify their needs and expectations

Stakeholders	Relationship channels
Regulatory bodies (state, local and international)	• Regular meetings (face-to-face, telephone, e-mail) • Corporate website
Investors (investment fund managers, rating agencies, analysts)	• Regular meetings (face-to-face, telephone, e-mail) • Roadshows • Corporate website	• Shareholder Information Office • Free shareholder helpline • Electronic mailbox • Meetings with minor shareholders and analysts
Employees (professionals, social organisations)	• Regular meetings (face-to-face, e-mail) • Corporate Intranet • In-house magazine 'Azul y Verde' • Electronic newsletter 'Ráfagas'	• Internal communication campaigns • Ethics Channel • Opinion surveys and associated improvement plans
Customers (distribution companies, shippers, transmission companies, direct consumers in the market)	• Account managers • Regular meetings (face-to-face, telephone, e-mail) • Main Control Centre • SL-ATR • Spanish Gas System Monitoring Committee	• Corporate website: SL-ATR 2.0 portal and SITGAS portal • Customer newsletter • Meetings with customers (Shippers' Day) • Customer satisfaction surveys and associated improvement plans • Service desk
Partners (business partners, strategic business partners and company management)	• Coordinators of affiliated companies • Regular meetings (face-to-face, telephone, e-mail) • Governing Bodies
Media (general, economic, specialised in the sector, specialised in sustainability)	• Regular meetings (face-to-face, telephone, online, e-mail) • Corporate website, social networks and blogs	• Media hotline • Media mailbox
Suppliers (critical and non-critical)	• Regular meetings (telephone, e-mail) • Corporate website: supplier portal • Supplier platform	• Contractor Access System • Supplier mailbox
Financial institutions	• Regular meetings (face-to-face, telephone, e-mail)
Associations and foundations (from the energy/gas sector, from social, environmental, ethical, sustainability areas, in education and culture, health and development cooperation)	• Regular meetings derived from participation in groups and forums (face-to-face, telephone, e-mail)

[GRI 2-29, GRI 3-1, GRI 207-2]

Materiality

[GRI 3-1, GRI 3-2]

Enagás identifies and prioritises material topics in the company's direct operations, according to the level of importance these have for Enagás and its stakeholders. The perspective adopted is that of "dual materiality", i.e., the impact on the value of the company and the impact on the environment of each material topic.

The materiality analysis is based on the company's activities, the strategy and operating context, as well as on the needs and expectations of its stakeholders. All this with a focus on the short, medium and long term, considering both own operations and the value chain, and in a manner consistent with the company's risk analysis.

In addition, Enagás reinforces this dual materiality perspective with reporting based on the GRI standard, to cover the impact on the environment (impact materiality), and with reporting based on the SASB and TCFD standards, to cover the impact of the environment on the company's financial value (financial materiality). See the 'About our Consolidated Management Report' appendix.

Material topics in the Enagás value chain

In line with the 2030 Strategic Plan and the new Sustainability Strategy, Enagás has updated its material topics in the Governance, Social and Environmental dimensions and their prioritisation in the materiality matrix shown in the following section.

In this way, the human rights issue is highlighted as a specific material topic, as it is an essential part of sustainability due diligence. This issue was already included in the areas of Ethics and Compliance, People (labour rights), Local communities (rights of communities), Health and Safety and Management of natural capital and biodiversity (right to use natural resources) (see the 'Human rights' section in this chapter).

Human rights

Enagás material topic	GRI 11 sectoral standard material topic: Oil and Gas Sector 2021
Good Governance
Human rights People	• Labour practices • Non-discrimination and equal opportunity • Forced labour and modern slavery • Freedom of association and collective bargaining
Human rights Ethics and integrity	• Anti-competitive behaviour • Anti-corruption • Payments to governments • Public Policy
Financial and operational excellence	• Closure and rehabilitation • Asset integrity and critical incident management • Economic impacts
Human rights Health and safety	• Occupational health and safety
Human rights Natural capital and biodiversity management	• Atmospheric emissions • Biodiversity • Waste • Water and effluents
Climate action and energy efficiency	• GHG emissions • Climate adaptation, resilience and transition
Human rights Local communities	• Local communities • Land and resource rights • Rights of indigenous peoples • Conflict and security

Enagás ensures the company's sustainability by managing these aspects in its value chain, viz., both in its direct operations and in the operations of third parties with whom it has relationships: suppliers and affiliates.

The following chapters explain how we are creating value for our stakeholders through our performance in each material topic, including corporate governance, the supply chain and management of affiliates as key transversal aspects for value creation.

Update of the Enagás materiality matrix

Enagás, through its Sustainability Committee, reviews and updates the company's material topics as follows:

• Updating of the materiality matrix at a global level for strategic updates or externalities with a significant impact. This update considers dual materiality, i.e., the impact on the value of the company and the impact on the environment of each material topic. This is the case of the update carried out in 2022 as a result of the 2030 Strategic Plan and the new Sustainability Strategy, which has considered the relevance that investors, through the main sustainability indices and rating agencies, and the regulator, through sustainability regulations, give to the different aspects of environmental, social and governance issues. The result is the variation in the prioritisation of the following material topics as follows (see graphical representation in the image below):
  • Decarbonisation as the focus of the strategic plan and the increased need to accelerate decarbonisation imply an increased importance both for stakeholders and for Enagás.
  • People are considered a fundamental axis for achieving the objectives set out in the new strategy. Therefore, the importance of the material topic of "people" has been increased for Enagás.
  • The importance for stakeholders and, to a lesser extent, for Enagás, of the due diligence in the value chain (affiliates and supply chain) is increased.
  • Human rights is highlighted as a specific material topic, as it is an essential part of sustainability due diligence, along with climate change. The level of importance for stakeholders would be equivalent to that of climate action, although somewhat lower, and for Enagás it would be at a level equivalent to that of value chain issues. [GRI 3-1, GRI 3-2]

◦ Updating of the relevant issues for each of the material topics on the basis of the feedback received from our stakeholders through the channels indicated above. The result of this update can be seen in the topics included in the following sub-sections of this chapter corresponding to material topics. An example of a revision is the publication in 2021 of the GRI sector standard GRI 11: Oil and Gas Sector 2021. This allowed us to confirm that the relevant issues were those that the company had been reporting and additional issues have been included to complement what has already been reported (see the ' GRI Content Index' section in the 'Appendixes' chapter).

[GRI 3-1]

Enagás materiality matrix [GRI 3-2]

Internal control over non-financial reporting system

Enagás has implemented an internal control system over non-financial information that reinforces the reliability of this information, equivalent to the internal control system over financial reporting (see Appendix 'Audit Opinion on Internal Control over Financial Reporting ("ICFR")' of the 'Annual Corporate Governance Report'). This system covers the company's areas of sustainability (environmental, social and governance) through the most representative indicators of material topics.

Since its implementation, Enagás carries out a yearly review with a focus on continuous improvement of this internal control system, increasing its scope and improving the traceability of the associated databases.

In 2022, the scope of the internal control system over non-financial reporting included the following indicators:

Material topic	Indicators
	The Council's abilities and experience assessment process
Good Governance	Board remuneration
	Executive Committee remuneration
Ethics and integrity	communications received via the Ethics Channel
	Scopes 1 and 2 greenhouse gas emissions
	Scope 3 greenhouse gas emissions (category 4: Upstream
	transmission and distribution)
	Energy consumption (self-consumption of natural gas)
Climate action and energy efficiency	Taxonomic CAPEX of activities significantly contributing to climate change mitigation and adaptation objectives (eligible and aligned
	activity and eligible and non-aligned activity)
	Taxonomic OPEX of activities contributing significantly to climate
	change mitigation and adaptation objectives (eligible and aligned
	activity and eligible and non-aligned activity)
Natural capital and	Biodiversity (area restored/revegetated)
biodiversity	Volume of waste generated and managed
management	Water capture, consumption and discharge
	Gender diversity (workforce, management positions and other
People	professional categories)
	Pay gap
	Functional diversity (workforce with disabilities)
Health and safety	Accident rate indicators
Supply chain	Approved suppliers
	Suppliers assessed
Local communities	Social action contribution amounts
	Receipt and external verification of the information points for the
General	preparation of the Consolidated Management Report
	Review of the Consolidated Management Report

In 2022, the internal control system for non-financial information was externally reviewed by EY through an Agreed-Upon Procedures Report.

3.1 Climate action and energy efficiency

[GRI 3-3]

Improved energy efficiency and lower greenhouse gas emissions are major factors in reinforcing the vital role that natural gas will play in a low-carbon economy as a key element for achieving sustainable, safe and efficient energy.

The most relevant aspects that we address in our climate change management model are public commitment and the setting of objectives, emissions reduction and offsetting measures, as well as reporting on our performance and results, following TCFD (Task Force on Climate-related Financial Disclosures) recommendations.

All of this is reported in a high level of detail in the CDP Climate Change questionnaire, available on the corporate website.

Sustainable Management Plan

Main lines in 2022 2023 lines

• 2022 Energy Efficiency and Emissions Reduction Plan.
• Improvements to the software for recording venting at regasification plants, underground storage facilities and transmission.
• Continuity in the development of projects and analysis of top-down methane emissions measurement and quantification methodologies to advance the reconciliation of bottom-up technologies in order to improve data uncertainty.
• Annual campaign to detect, quantify and repair fugitive emissions in all our facilities.
• Definition of a long-term offsetting approach prioritising nature-based solutions in line with the evolution of voluntary carbon markets.

• Obtaining the OGMP2.0 (Oil and Gas Methane Partnership) Gold Standard, which recognises Enagás' commitment to reducing methane emissions and improving its data.

• 2023 Energy Efficiency and Emissions Reduction Plan.

• Plan for the electrification of renewable energy sources (replacement of natural gas turbocompressors with electric motors that consume electricity with guarantees of renewable origin).
• Renewal of the OGMP2.0 (Oil and Gas Methane Partnership) Gold Standard, which recognises Enagás' commitment to reducing methane emissions and improving its data.
• Annual campaign to detect, quantify and repair fugitive emissions in all our facilities.
• Internal audit of the quality of Carbon Footprint data and decarbonisation pathway targets.

9,083 tonnes of CO2e	35 GWh	385,410 tonnes of CO2e	0 tonnes of CO2e	2,413 tonnes of CH4
avoided in 2022 through energy efficiency or emissions reduction measures launched in 2022	self-generation of energy from renewable, clean and efficient sources	greenhouse gas emissions (scope 1) [GRI 305-1] (-28% vs. 2014)	greenhouse gas emissions (scope 2) [GRI 305-2] thanks to 100% Renewable Energy Guarantees of Origin contracts	methane emissions (-30% vs. 2015)

Governance model for climate change management

[GRI 2-12, GRI 2-13]

At Enagás there is a governance structure led by the Board of Directors that supervises the company's climate change performance. The Board of Directors is informed on a quarterly basis about the risk control processes, where climate change risks and opportunities are integrated. The Sustainability and Appointments Committee, through the Sustainability Committee, approves and monitors the CO2 emissions reduction targets linked to variable remuneration as well as initiatives that help achieve said reduction that are included in the Energy Efficiency and Emissions Reduction Plan.

Furthermore, the Audit and Compliance Committee supervises the efficiency of risk control and management systems and assesses the possible impact of climate change through the Executive Committee. The Executive Committee establishes the overall risk management strategy and global limits for the company, and also reviews the level of risk exposure and corrective actions.

The Sustainability Committee is made up of the company's main General Managements, including the new Energy Transition General Management, created in 2022. This General Management presides over the functions of Sustainability and Climate Action, Strategy and National and International Regulation, areas that provide the input for the definition of the decarbonisation strategy, as well as the identification of risks and opportunities derived from climate change.

The Health and Safety, Environment and Quality Committee periodically assesses and manages issues related to climate change associated with business processes, impact assessment studies and the evaluation of environmental aspects.

There are also various working groups reporting to these committees, such as the Energy Efficiency and Emissions Reduction Group, responsible for drafting and monitoring the Energy Efficiency Plan and setting the company's emissions reduction targets, among other matters.

In terms of risk management, business units are responsible for risk identification and measurement, the risk function controls and manages risks and the Internal Audit function supervises the effectiveness of the established controls to mitigate these risks (see the 'Risk management' chapter).

In 2022, Enagás created the Energy Transition General Management, with functions in the areas of Sustainability, Climate Action, Strategy and National and International Regulation

Management of risks and opportunities arising from climate change

[GRI 201-2]

Risks derived from climate change are evaluated comprehensively in the Company's risk management model over the short-term horizon (three years). In addition, to assess these risks in the long term, the time horizon is 2040 (according to the European taxonomy of sustainable activities).

In this way, risks from factors such as policies and regulatory measures that encourage the use of renewable energy sources, natural disasters or adverse weather conditions and volumes of CO2 emissions and prices, as well as reputational risk, are identified and quantified.

The physical risk assessment is based on short-, medium- and long-term horizons, considering the expected lifetime of the assets and the scale of activity. This analysis was based on an assessment of climate vulnerabilities and risks in the different asset types.

According to the assessment, the effects of these risks would have a low-moderate economic impact on the company in 2040 (around 10% of profit). However, these effects would be offset by the opportunities that have been identified in the areas of hydrogen infrastructure, energy transition investments, development of renewable gases through our affiliate Enagás Renovable, and new liquefied natural gas (LNG) logistics services.

For the assessment of climate change risks, the Stated Policies Scenario (STEPS) of the of the International Energy Agency (IEA) has been used as the baseline. For the transition risk assessment, two IEA scenarios were considered: Net Zero Emissions by 2050 Scenario (NZE), aligned with the 1.5°C increase, and the IEA's Sustainable Development Scenario (SDS) and the IPCC's RCP2.6 and RCP 6. For the physical risk assessment (natural disasters), the IPCC RCP 8.5 scenario was considered. In both cases, the worst-case scenario was used to calculate the impact and represent the risks on the map.

Climate change risks and opportunities

Climate change risks

Factors	Risk	Control and management measures (1)
Operating context Investment	Failure to meet emissions targets	• Commitment to climate neutrality by 2040. • Short and long-term emissions reduction targets linked to variable remuneration. • Energy Efficiency and Emissions Reduction Plan. • Assessment of the use of renewable gases for self-consumption at the company's infrastructure facilities.
Policies and regulatory measures encouraging the use of renewable energies	Loss of revenue due to decrease in demand / increase in financing costs	• Promotion of new services and uses of natural gas in the transportation (road, rail and sea), industrial and household sectors. • Promotion of the development of gas from renewable sources (biomethane and renewable hydrogen) and their integration in gas infrastructures. • Promotion of the development of new technologies and infrastructures for the capture, transmission and storage or use of CO2 and small-scale liquefaction. • Monitoring of sustainable finance regulation and assessment of alternative financing models
Policies and regulatory measures encouraging the use of renewable energies	Non-compliance with the business plan due to not achieving adequate deployment of hydrogen technology	• Agreement between the Spanish, French, Portuguese and German governments to create the future H2Med hydrogen corridor. • Joint Ventures for technological development and the promotion of renewable hydrogen production and transmission infrastructures. • Projects under consideration are focused on the methanisation of hydrogen for its injection into the network, use in mobility and application in auxiliary machinery. • Research and development of salt caverns for underground storage.
Natural disasters or adverse meteorological conditions (floods, landslides, etc.)	Operational cost overruns due to natural disasters	• Environmental certifications (ISO 14001 and EMAS). • Emergency response action plans. • Procedures for the investigation and monitoring of incidents. • Development of demand scenarios that determine the infrastructure to develop in order to guarantee security of supply. • Material damage policy. • Emergency response action plan. • Insurance policy covering catastrophic damage. • Review of plans for adaptation to climate change in infrastructures and the associated investments.
Negative public perception of companies operating in the fossil fuels industry	Reputational	• Fluent, direct communication with stakeholders. • Permanent monitoring of information published in the media and social networks.

1) The estimated cost of managing the measures is 58 million euros per year.

Climate change opportunities
Opportunity	Lines of action (1)
Energy transition investments	• Blending. • Carbon neutrality plan. • Adaptation of existing infrastructure. • Biomethane connections.
Hydrogen infrastructure	• Spanish hydrogen backbone. • Research and development of salt caverns for storage. • Joint Ventures for technological development and the promotion of renewable hydrogen production and transmission infrastructures. • Projects under consideration are focused on the methanisation of hydrogen for its injection into the network, use in mobility and application in auxiliary machinery.
Renewable gas production through Enagás Renovable	• Development of renewable hydrogen production projects. • Promoting the decarbonisation of all sectors, favouring the revitalisation of the industrial fabric. • Involvement in different European groups analysing the technical conditions for the introduction of hydrogen into gas networks. • Development of biomethane production projects. • Issuance of green certificates. • Measurement of gas quality: guaranteeing the quality of renewable gas before its injection into the gas network. • Stake in biomethane infrastructures (upgrading/connection to the transmission network).
New logistics services	• Design and development of new services in infrastructures, turning them into logistical centres for LNG supply. • Development of other new services: bunkering (refuelling LNG, between tanks or from a satellite plant to a tank), small scale (refuelling small LNG tanks), bulk breaking (refuelling LNG in medium-sized tanks and trucks), parking gas (long-term storage of gas in tanks). • Extension of the tank refuelling service. • Mobility: gas and hydrogen refuelling stations.

(1) The estimated cost of managing the lines of action is 106.4 million euros per year.

[GRI 201-2]

Our climate change performance

Enagás' carbon footprint is ISO 14064:2019 certified and is registered in the carbon footprint record of the Ministry for Ecological Transition and the Demographic Challenge with the "Calculate, reduce and offset" seal.

Enagás, from 2014 to 2021, has reduced more than half of its Scope 1 and 2 emissions thanks to the measures included in its Efficiency and Emissions Reduction Plan. However, from the end of 2021 and during 2022, there were very significant changes in the context of the operation of the Spanish Gas System that have had an impact on the company's carbon footprint (see the New energy paradigm section in the Strategy chapter). The main effects are highlighted below together with an estimate of their degree of impact on emissions:

• Contextual changes resulting from the closure of the Maghreb to Europe pipeline (70% of the increase in emissions in 2022 compared to 2021 is due to this effect). The closure of the Tarifa international connection from November 2021, which already had an impact on emissions in 2021, has meant the Spanish Gas System has had to take on the compression work previously carried out from Tangier, through greater gas inflows through the Almeria international connection and greater LNG inflows to the regasification plants.
  • The increased inflows of gas through the Almeria international connection have meant greater operation of the compressor stations of Cordoba (to cover the demand of the Al-Andalus pipeline), Alcázar (to assist in the

movement of gas flows) and, above all, Chinchilla, which was in daily use throughout 2022.

• Higher LNG inflows to regasification plants have resulted in increased regasification activity to meet demand and increased use of certain Compressor Stations designed to evacuate high levels of regasification. All this implied an increase in emissions at both plants and compressor stations.
• Contextual changes due to the Russia-Ukraine conflict (30% of the increase in emissions in 2022 compared to 2021 is due to this effect):
  • Change in the direction of gas flow at VIP Pirineos, leading to increased operation of the compressor stations needed to meet the agreed delivery pressures.
  • Fill requirements at underground storage facilities (Royal Decree-Law 6/2022, of March 29 and Regulation (EU) 2022/1032)11 to improve security of supply in winter, which implies greater demand for gas injection and therefore greater consumption of operating gas and self-consumption by compressor stations, which translates into higher emissions.

These changes in the operation have resulted in a notable overall increase in emissions compared to the previous year, 46.2% (385,410 tonnes of CO2e), a situation that is expected to continue in the coming years.

However, despite this new context, Enagás maintains its targets for 2026, 2030 and 2040, which it will achieve mainly thanks to the electrification of turbocompressors and the use of biomethane (see the Targets and roadmap to decarbonisation section in the Decarbonisation and carbon neutrality chapter).

of June 29 2022 amending Regulations (EU) 2017/1938 and (EC) No 715/2009 with regard to gas storage, imposing an obligation on Member States to reach a filling level of 80% of underground storage facilities by November 1, 2022, and 90% by the same date in 2023.

¹¹ Royal Decree-Law 6/2022, of March 29, increased the minimum security stock holding obligations for natural gas shippers and direct consumers in the market from 20 to 27.5 days of firm consumption. In addition, on June 29, 2022, the European Union adopted Regulation EU 2022/1032 of the European Parliament and of the Council

Scopes 1 and 2 CO2 emissions (tonnes of CO2e) Impact of the new operating context [GRI 305-1, GRI 305-2]

In a new operating context, Enagás maintains its emission reduction targets for 2026, 2030 and 2040

Scopes 1 and 2 CO2 emissions (tonnes of CO2e)12 [GRI 305-1, GRI 305-2]

	2020	2021	2022
Scope 1 (1)	208,314	263,571	385,410
Scope 2 (2)	1,654	0	0
Scopes 1+2	209,968	263,571	385,410

(1) Corresponds to the gross value of direct greenhouse gas emissions. The amount of offset emissions is reported separately (see the "Emissions offsetting" section in this chapter), and in 2022 amounted to 5,977 tonnes of CO2e.

(2) Scope 2 calculated according to market-based methodology. Scope 2 data calculated according to locationbased methodology are: 60,429 tonnes of CO2e in 2020, 46,368 tonnes of CO2e in 2021 and 59,653 tonnes of CO2e in 2022.

• – Emission factors sources Organisational Carbon Footprint Calculator (Scopes 1 and 2) and Royal Decree 1088/2010 (http://www.boe.es/boe/dias/2010/09/04/pdfs/BOE-A-2010-13704.pdf).
• – Methane to natural gas conversion factor: IPCC (http://www.ipccnggip.iges.or.jp/public/gp/bgp/2_6_Fugitive_Emissions_from_Oil_and_Natural_Gas.pdf)
• – MGM methane: http://cdm.unfccc.int/methodologies/inputsconsmeth/MGM_methane.pdf

¹² The emission factors used in the calculation of Scope 1 and 2 emissions are:

^– Emission factors for stationary combustion sources: Spain, GHG Inventories Report 1990-2019 (2021 Edition) (https://www.miteco.gob.es/es/calidad-y-evaluacion-ambiental/temas/sistemaespanol-de-inventario-sei-/es-2021-nir_tcm30-523942.pdf) - Appendix 7 and the Organisational Carbon Footprint Calculator (Scope 1+2 v.20) (https://www.miteco.gob.es/es/cambioclimatico/temas/mitigacion-politicas-y-medidas/calculadoras.aspx).

Scope 1 and 2 emissions by type of facility in 2022 [GRI 305-1, GRI 305-2]

• Since 2021, Enagás has also reduced emissions from electricity consumption (Scope 2) by 100% at its facilities. This reduction has been possible thanks to:
  • 100% of electricity supplied with Renewable Energy Guarantees of Origin in all facilities.
  • Continually increasing power self-generation through efficient, clean and renewable sources with an emissions factor of zero. In 2022, 35 GWh were generated.

Emission intensity (Scopes 1 and 2) [GRI 305-4]

Enagás evaluates efficiency in terms of emissions (emissions intensity) through indicators aligned with the emissions derived from the most significant energy consumption and activity data with which Enagás has identified correlation. In this regard, the ratios for each type of facility are included below, as well as the overall ratio of total Scope 1 and 2 emissions with respect to the sum of compressed, injected and regasified gas.

	2021	2022
Emissions at compressor stations with respect to compressed gas at compressor stations (tonnes of CO2e at compressor stations/TWh)	632.9	557.9
Emissions in storage facilities with respect to gas injected into storage facilities (tonnes of CO2e in storage facilities/TWh)	4,566.9	4,762.3
Emissions at plants with respect to gas regasified at plants (tonnes of CO2e at plants/TWh)	0	0
Total emissions with respect to total compressed, injected and regasified gas (tonnes of CO2e/TWh)	855.5	773.3

The emissions intensity indicator calculated with respect to net profit (1,683 tonnes of CO2e/million euros in 2022 and 1,096 tonnes of CO2e/million euros in 2021)13, despite being a standard and widely used indicator, does not represent the most accurate unit for measuring our environmental performance, as 96.6% of our revenues come from regulated activities and the current regulatory framework (see the 'Strategic Plan 2030' section in the 'Strategy' chapter) establishes a methodology to determine such revenues. It does not include concepts related to the level of use of gas infrastructures, which is the parameter to which environmental impacts are related.

indicator has been recalculated with this criterion (403.8 million euros net profit and 163.3 million euros, respectively) [GRI 2-4]

¹³ For the calculation of the intensity indicator, the adjusted net profit without considering the result of investments accounted for by the equity method was considered (in 2022, net profit after tax was 375.8 million euros, and the result of investments accounted for by the equity method was 146.8 million euros). The 2021

Scope 1 and 2 emissions by source in 2022 [GRI 305-1, GRI 305-2]

At a facility level, 73.3% of emissions are concentrated at compressor stations, followed by underground storage facilities, which account for 15.3%. In terms of emission sources, 75.8% of the total emission footprint (Scope 1 and 2) is generated by the self-consumption of natural gas in turbocompressors at compressor stations and underground storage facilities. In this regard, Enagás has an ambitious turbocompressor electrification plan to progressively replace natural gas compressors with electric compressors, thereby reducing emissions and helping to achieve the targets set out in the decarbonisation pathway (see the 'Decarbonisation and carbon neutrality' section).

Infrastructure activity data [GRI 302-2]

		Unit	2021	2022	2022 vs. 2021 (%)
Regasification plants	Regasified gas, tank and ship loading at regasification plants	GWh	121,810	171,640	+ 40.91%
Compressor stations	Compressed gas at Compressor stations	GWh	207,869	346,451	+ 66.67%
Underground storage facilities	Total net injection underground storage facilities	GWh	7,989	14,130	+ 76.87%
	Total gross withdrawal from underground storage facilities	GWh	12,724	3,901	- 69.34%

Scope 1 and 2 emissions by gas type in 2022 [GRI 305-1, GRI 305-2]

Change in methane emissions (tones of CH4)

82.4% of Enagás' carbon footprint (scopes 1 and 2) corresponds to CO2 emissions, generated mainly during the combustion of natural gas in stationary sources, i.e. turbocompressors, boilers, flares, etc.

Methane emissions, which account for 17.5% of the footprint (scopes 1 and 2), are mainly due to natural gas venting (76%) and fugitive emissions (24%). Venting may occur as a result of operation and maintenance, operating safety, pneumatic valves and analysis equipment such as chromatographs. For their part, fugitive emissions correspond to uncontrolled gas leaks in the equipment (flanges, connectors, etc.). The latter have decreased by 9% compared to the previous year. Globally, emissions of this gas (CH4) have increased by 9%, mainly due to:

• Improved data recording on venting at regasification plants and underground storage facilities and during transmission thanks to the development of a computer application that improves data collection and consolidation.
• Improvements in the quantification methodology, incorporating the guidelines that are being developed at the international level.
• Improvements to incident detection, quantification and reporting.Enagás' adherence to the methane emissions reporting framework of the Oil & Gas Methane Partnership 2.0 (OGMP2.0), together with significant efforts to reduce the uncertainty of this data, entail a constant review of our quantification methodology. In this regard, the Enagás

Implementation Plan for maintaining the Gold Standard involves the review of all our methane sources and therefore, the possibility of incorporating possible new sources in the coming years. This comprehensive review may be extended until 2023, by which time Enagás expects to achieve the highest data quality in line with OGMP commitments and deadlines (see the 'Reduction of methane emissions' sub-section in this section).

EU Emissions Trading System

73.5% of emissions included in the Carbon Footprint (scopes 1 and 2) are included in the EU Emissions Trading System (EU ETS).

In 2022, 31,724 emission allowances were received through free allocation and 204,150 emission allowances were purchased to cover the period's emission rights needs. [GRI 201-2]

Energy Efficiency and Emissions Reduction Plan

At Enagás, energy efficiency plays a key role in emissions reduction and considerable efforts have been made in this regard. In recent years, starting in 2014, we reduced by 32% our CO2 emissions thanks to the implementation of energy efficiency measures, in which we have invested around 90 million euros since 2008. [GRI 201-2]

During the 2015-2022 period, the Energy Efficiency and Emission Reduction Plan has enabled the avoidance of 804,280 tonnes of CO2e.

These emissions include the accumulated emissions prevented as a result of the measures of the Energy Efficiency and Emissions Reduction Plan implemented from 2015 to 2022.

We are working to ensure the continuous improvement of the energy efficiency of our infrastructures. For this reason, we have an energy management system certified according to the ISO 50001 standard.

Energy efficiency measures and emissions reduction measures implemented [GRI 302-4, GRI 302-5, GRI 305-5]

Energy Efficiency and Emissions Reduction measures (1)	Savings type	Energy savings achieved in 2022 (GWh) (2)	Emission reductions achieved in 2022 (tonnes of CO2e)
Installation of a frequency inverter on the GA-116-D seawater collection pump of the Huelva Plant	Electric consumption savings	0.02	- (3)
Installation of a frequency inverter on the GA-116-F seawater collection pump of the Huelva Plant	Electric consumption savings	0.1	- (3)
Installation of a frequency inverter on the GA-115-C primary pump of the Huelva Plant	Electric consumption savings	0.01	- (3)
Installation of a frequency inverter on the GA-115-H primary pump of the Huelva Plant	Electric consumption savings	0.01	- (3)
Replacement of pneumo-hydraulic actuators (XV-1901 F/G/H/I) with electric actuators (MOV-1901 F/G/H/I) in unit of measurement 72 b	Natural gas savings	0.0017	0.36
Recovery of part of the GB-103A/B/C; GB-123-A/B compressor seal venting	Natural gas savings	0.01	20.14
Withdrawal escape valves (VES) in six transmission zones (Alicante, Bañeras, Burgos, Asturias, Almendralejo, Toledo), modification of range, upgrade as-built	Natural gas savings	0.35	558.32
Improved heating systems in positions (improved control and change of boilers)	Natural gas savings	0.03	5.57
Reduction of venting emissions from the oxygen analysers in the tanks at the Huelva Plant	Natural gas savings	0.05	72.08
Reduction of venting emissions from the oxygen analysers in the tanks at the Barcelona Plant	Natural gas savings	0.04	58.2
2022 LDAR (Leak Detection and Repair) campaign at the Barcelona regasification plant	Natural gas savings	0.32	496.43
2022 LDAR (Leak Detection and Repair) campaign at the Huelva regasification plant	Natural gas savings	0.66	1,025.54
2022 LDAR (Leak Detection and Repair) campaign at the Cartagena regasification plant	Natural gas savings	0.27	422.94
2022 LDAR (Leak Detection and Repair) campaign at the Serrablo underground storage facility	Natural gas savings	0.21	319.38
2022 LDAR (Leak Detection and Repair) campaign at the Yela underground storage facility	Natural gas savings	0.03	43.99
2022 LDAR (Leak Detection and Repair) campaign at the Gaviota underground storage facility	Natural gas savings	0.03	77.39
2022 LDAR (Leak Detection and Repair) campaign in transmission	Natural gas savings	3.86	5,982.56
TOTAL		6.0017	9,083

(1) Including those emissions reduction or efficiency measures verified in 2022 and completed in the last quarter of 2021 or before the last quarter of 2022, considering that sufficient time has elapsed for savings to be measured. (2) The energy savings achieved are calculated on the basis of the energy consumption of the previous year.

(3) As we had a 100% Renewable Energy Guarantees of Origin contract in 2022, the reduction is not considered to be in emissions, but only in energy savings.

In 2022, the percentage of electricity with a guarantee of renewable origin over total electricity consumption from the grid was 100% in all facilities. In other words, all electricity consumed by Enagás has a zero emission factor.

In 2022, own electricity generation from renewable, clean or efficient sources reached 35 GWh, 56% more than in 2018, representing 14.1% of total electricity consumption. Part of the energy generated is delivered to the national grid and another part is consumed at Enagás' own facilities. The energy sent back to the grid (23.9 GWh) helps reduce 5,969 tonnes of CO2 for third parties, contributes to reducing the national electricity mix factor and reinforces the principles of the circular economy, whereby Enagás' surplus electricity is used by third parties, thereby reducing their carbon footprint (see the 'Circular economy' sub-section in the 'Natural capital and biodiversity management' section).

Energy consumption (GWh/year) [GRI 302-1]

(1) Does not include fugitive emissions, analyser venting, pneumatic valves or compressor venting.

Energy consumption (GWh/year) [GRI 302-1]

	2020	2021	2022
Renewable energy consumed	201.1	197.3	250.5
Non-renewable energy consumed	851.2	1,111.3	1,776.3
Total energy consumed	1,052.3	1,308.6	2,026.8

The increase in Enagás' activity, mainly at compressor stations, led to an increase in natural gas consumption (+60.6%) compared to last year. On the other hand, diesel consumption by emergency generators and fire-fighting tanks decreased by 10%. Gasoline consumption has increased (+109%) mainly due to the fact that in 2021, due to the post-pandemic situation, travel was more restricted than in 2022, which returned to a similar level as in previous years.

Energy intensity [GRI 302-3]

Enagás evaluates energy efficiency (energy intensity) through indicators aligned with the most significant energy consumption and activity data with which Enagás has identified correlation. In this regard, the ratios for each type of facility are included below, as well as the overall ratio of energy consumption with respect to the sum of compressed, injected and regasified gas.

	2021	2022
Natural gas consumed at Compressor Stations with respect to gas compressed at Compressor Stations (GWh of natural gas at Compressor Stations/TWh)	4.1	4.0
Natural gas consumed at Storage Facilities with respect to gas injected into storage facilities (GWh natural gas in storage facilities/TWh)	23.8	23.8
Electricity consumed with respect to gas injected into storage facilities with an electric motor (GWh electricity in storage facilities/TWh)	5.0	5.1
Natural gas consumed with respect to gas regasified at plants (GWh of natural gas in plants/TWh)	1.5	0.1
Total energy consumed with respect to compressed, injected and regasified gas (Tep/TWh)14	563.1	349.7

The energy intensity indicator calculated with respect to net profit (8.85 GWh/million euros in 2022 and 5.44 GWh/million euros in 2021)15, despite being a standard and widely used indicator, does not represent the most accurate unit to measure our environmental performance, as 96.6% of our revenues come from regulated activities and the current regulatory framework (see the '2030 Strategic Plan' section in the 'Strategy' chapter) establishes a methodology to determine such revenues. It does not include concepts related to the level of use of gas infrastructure, which is the parameter to which environmental impacts are related.

Reduction of methane emissions [GRI 305-5]

During 2022, various methane reduction measures were implemented that enabled Enagás to achieve a 30% reduction in methane emissions compared to the 2015 base year considered for setting its targets aligned with the Global Methane Alliance initiative. These measures include:

• Detection, quantification and repair of fugitive emission points covering all our facilities, which enabled us to avoid the emission of 8,368 tonnes of CO2e in 2022.
• Implementation of a vented gas recovery system at the Lumbier Compressor Station, which will lead to reductions of approximately 3,500 tonnes of CO2e per year.
• • Continued replacement of pneumatic actuators with electric actuators in the transmission network, which has prevented the emission of almost 210 tonnes of CO2e into the atmosphere.
• Continued recovery of part of the compressor venting from the regasification plants, which has prevented the emission of approximately 112 tonnes of CO2e.

In addition, the company continues to make progress in reducing the uncertainty of methane emissions data under the OGMP2.0 (Oil and Gas Methane Partnership) initiative, to which it adheres. This is an initiative for the reporting of methane emissions in line with the European Union Methane Emission Reduction Strategy. In 2022 Enagás obtained the "Gold Standard" seal, which recognises the company's commitment to reducing methane emissions, as well as the company's plan to improve the reliability of methane data both for the assets over which Enagás has operational control and for its affiliates.

11/2022

The International Methane Emissions Observatory (IMEO) has recognised Enagás with the highest rating, 'Gold Standard', for the second consecutive year, highlighting its methane emissions plan as one of the most robust and detailed in the framework of The Oil & Gas Methane Partnership 2.0 (OGMP 2.0).

In this area, Enagás has carried out several actions applying continuous technological improvement, among which the following are noteworthy:

• Measurements with different top-down technologies (differential absorption lidar and drone use) for subsequent reconciliation with Enagás inventory data. These measurements were performed at all regasification plants, one underground storage facility and one compressor station.
• Development of a digital application to record venting in the transmission network. In 2022, this application allowed for the more detailed monitoring of venting at regasification plants and underground storage facilities and during transmission and to obtain the information broken down in accordance with the OGMP2.0 reporting framework.
• Leadership in the research project promoted by GERG (European Gas Research Group). Enagás coordinated and led, together with GERG, a pioneering global innovation project to provide guidelines on how reconciliation should be carried out at source and site level. After testing the performance of 12 cutting-edge technologies (nine top-down and three bottomup), in order to assess their accuracy and reliability for methane emissions quantification in

euros, and the result of investments accounted for by the equity method was 146.8 million euros). The 2021 indicator has been recalculated with this criterion (403.8 million euros net profit and 163.3 million euros, respectively) [GRI 2-4]

¹⁴ All types of energy consumed in the company are included (electricity, petrol, diesel, natural gas, renewable energy and self-consumption).

¹⁵ For the calculation of the intensity indicator, the adjusted net profit without considering the result of investments accounted for by the equity method was considered (in 2022, net profit after tax was 375.8 million

2021, a first reconciliation pilot project was carried out in 2022, including testing of technologies at a site and source level at an operating compressor station in Belgium.

• In 2022, Enagás and SATLANTIS continued the calibration tests of high-precision optics in two compressor stations, which will be inserted in a constellation of space microsatellites, called GEISAT (Greenhouse Gases), to detect and quantify methane emissions on Earth.

05/2022

A group of energy operators and associations launched an innovative project under the auspices of the European Gas Research Group (GERG) to test different technologies to quantify methane emissions. The initiative aims to increase knowledge about the reconciliation process, a key step in improving the accuracy of methane emission estimates.

The company also maintained its high level of collaboration with regulators and international organisations, with the following actions being of particular note in 2022: [GRI S11.2.4]

• Active participation in various European Commission consultations on the legislative development roadmap, dealing with the content and monitoring, reporting and verification of methane emissions.
• Leadership in the meetings of the OGMP Mirror Group and support in the development of OGMP technical guidelines with the submission of comments.
• Participation in MARCOGAZ technical recommendations: Workshop on a regulatory approach on leak detection and repair of methane emissions in the oil and gas sectors, and Mitigating methane emissions: the role of the gas sector.

[GRI 305-5]

Emissions offsetting

Enagás' decarbonisation strategy is based on prioritising measures to reduce emissions and subsequently offsetting emissions that cannot be reduced for technical reasons.

Enagás follows certain criteria to offset its residual emissions:

• Mitigation hierarchy: only proceed to offset residual emissions once the maximum level of reduction has been achieved with the available technology.
• Offset against credits generated by projects that meet the following requirements:
  • Be located in geographic areas where the company is present.
  • Have quality certificates that guarantee the solvency and reliability of the projects.
  • Prioritise nature-based solutions.

Therefore, after applying these criteria, Enagás offset the emissions derived from its regasification plants, the Euskadour compressor station, the corporate fleet and headquarters (5,977 tonnes of CO2e), maintaining the carbon neutrality achieved in 2017 (in the case of Euskadour, since 2020). This compensation was carried out with an avoided-deforestation project in Peru and a reforestation project in Spain.

In addition, Enagás participates in the largest reforestation project in Spain, Motor Verde, developed by Repsol and Sylvestris, with which it will offset part of its residual emissions in the future.

Scope 3 emissions [GRI 305-3]

In addition to its activity chain's impact on emissions, Enagás includes the impact of the gas transported by the company in the natural gas value chain in its Scope 3 emissions. In this regard, it is important to note that the gas that Enagás transports through its infrastructures is not owned by the company; for this reason, the company includes in its Scope 3 emissions only the activities associated with the service it provides to its customers (gas transmission through company infrastructure), without including those associated with the product transported (natural gas), which include activities associated with conventional gas demand (domestic, commercial and institutional), among others.

The operating context of 2022, marked by the energy crisis (see the New energy paradigm section in the Strategy chapter), has not only had an impact on Enagás' Scope 1 and 2 emissions, but also on its Scope 3 emissions. In this regard, there was a significant increase in emissions from upstream transmission and distribution, specifically emissions from ships transporting natural gas arriving at Enagás' facilities. In 2022, the number of ship unloadings increased by 94% compared to 2021, increasing the associated emissions by 97%. Enagás also sold some of its holdings, such as the Chilean regasification plant GNL Quintero, the Morelos pipeline16 and Compañía Operadora de Gas del Amazonas (COGA), which accounted for 82% of the investments made in the previous year.

Scope 3 emissions classification in 2022 [GRI 305-3]

¹⁶ Pending closing of sale.

Scope 3 17 [GRI 305-3]

ISO 14064: 2019 - Indirect emissions					2022
	Category	Subcategory	GHG Protocol - Scope 3		(tonnes of CO2)	(tonnes of CO2)	Change
goods Category 3: Emissions caused by		Upstream transport and distribution of	4	Upstream transmission and distribution	402,205	788,130	96%
		Downstream transport and distribution of goods	9	Downstream transmission and distribution		121,934 (1)	-0.23%
transport		Cat. 5.1 Product use phase	11 Use of sold products
		Employee commuting	7	Employee commuting	398	451	13%
		Customer and visitor travel	6	Business travel	19	93	>100%
		Business travel	6	Business travel	188	934	>100%
		Purchased goods	1.1	Purchased goods and services – Purchased goods	20,709	28,423	37%
Category 4: Emissions	Goods purchased by the organisation	Capital goods	2	Capital or production goods, for example equipment, machinery, vehicles, buildings, factories, etc.	6,197	4,615	-26%
caused by	Services used by the organisation	Solid and liquid waste disposal	5	Waste generated during operation	172	55	-68%
products used by the organisation		Use of assets that are generated through equipment leased by the organisation	8	Upstream leased assets		NA (2)
		Other service uses	1.2	Purchased goods and services - Other services	1,385	1,892	37%
Downstream leased assets Category 5: Indirect GHG emissions		13	Downstream leased assets		NA (2)
associated with the use of the		End-of-life phase of the product	12	End-of-life treatment of sold products		NA (3)
organisation's products		Investment	15	Investment	235,261	58,262(4)	-75% (4)
Category 6: Indirect GHG emissions from other sources		3	Fuel and energy related activities not included in scope 1 and 2	36,467	57,526	58%
		10	Processing of sold products		NA (3)
		14	Franchises		NA (5)
TOTAL					825,211	1,062,315	29%

(1) Emissions from Cat. 11 (Use of sold products) correspond to the same emissions as GHG Protocol Cat. 9 emissions from distribution companies. This is due to the nature of our business, as Enagás does not own or sell natural gas, and therefore we consider distribution companies to be end customers of our services, and their emissions to be the final ones linked to the natural gas we transport.

(2) This category is not applicable to Enagás as we do not operate any upstream or downstream leased assets.

(3) These categories are not applicable to Enagás as our activity is limited to the transmission of natural gas, classified within the midstream segment. Enagás is not the owner of the gas at any stage of the value chain and is not responsible for emissions related to the end-of-life treatment of products or the processing of products for sale.

(4) Includes emissions from Enagás' affiliates, specifically the Bahía de Bizkaia Gas (BBG) Regasification Plant; Soto la Marina compressor station; Sagunto Regasification Plant (Saggas); LNG Regasification Plant from the operator DESFA; Trans Adriatic Pipeline (TAP) and TLA Altamira regasification plant. Does not include Tallgrass Energy emissions due to lack of data. The decrease is very high because three affiliates (COGA, Quintero (pending closing of sale) and Morelos) have been sold and were therefore not considered.

(5) This category is not applicable to Enagás because the company does not have franchises.

¹⁷ In addition to the emission factors used in the calculation of Scope 1 and 2 emissions, the following emission factors have been considered for the calculation of Scope 3 emissions:

^– Maritime transport: DEFRA, Pestaña Fuels, Maritime Oil. 2020. version 2.

^– Air transport: Aviation: COMMISSION IMPLEMENTING REGULATION (EU) 2018/2066 of December 19, 2018, on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012 (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018R2066&rid=1). Using emission factor (Annex 3.2 Table 1) 3.10/ 3.10/ 3.15 tonnes of CO2/tonnes of fuel for the density provided by the same source of 0.8 kg/litre (Article 53).

Enagás has reviewed the indirect emissions relevance analysis according to the criteria set out by the ISO 14064:2019 standard, namely: volume of emissions in each category with respect to the total, level of influence, access to information, data accuracy and relevance. As a result of the significance analysis, the categories corresponding to upstream transmission and distribution of goods, downstream transmission and distribution, purchased goods, investments and fuel and energy related activities not included in scope 1 and scope 2 have been classified as relevant. It should be noted that, although only five categories were identified as significant, Enagás is aware of the importance of emissions linked to the value chain and reports all categories in a bid for transparency.

Reduction of Scope 3 emissions [GRI 305-3]

Enagás addresses the reduction of Scope 3 emissions throughout its value chain, especially those included in the company's carbon footprint, through the following actions:

• Development of renewable gases. Enagás is strengthening its participation in the development of renewable gas projects (renewable hydrogen and biomethane) that will allow for their progressive incorporation into the energy model (see the 'Renewable Gases' sub-section) for the decarbonisation of the entire natural gas value chain.
• • Promotion of the use of liquefied natural gas (LNG) in mobility (maritime transport) (see the 'Sustainable Mobility' sub-section).
• Collaboration with industry and associations on decarbonisation (see the 'Reduction of methane emissions' sub-section in this section).
• Promotion of decarbonisation at Enagás affiliates: emissions reduction and energy efficiency measures are among the critical management standards that Enagás extends to its affiliates (see the 'Affiliates' section). In addition, a climate action due diligence analysis has been performed on all our affiliates, which has allowed us to verify the progress of the companies in terms of setting emission reduction targets, as well as in terms of calculating and reporting methane emissions and evaluating best practices for reducing methane emissions. Regarding this last point, Enagás will continue to monitor methane emissions through the OGMP2.0 reporting framework (see the 'Reduction of methane emissions' sub-section in this section).
• Promotion of decarbonisation in the supply chain: Enagás has several platforms for the approval and evaluation of its suppliers' performance. In this way, Enagás evaluates its main suppliers in terms of climate action and identifies working areas aimed at reducing its carbon footprint (see the 'Supply chain' section).

3.2 People

[GRI 3-3]

People management is a key area for the company, since, as reflected in our Human Capital Management Policy, it enables Enagás to equip itself with the resources required for the deployment of its strategy.

The key aspects that we address in our people management model are the structure and sizing of our organisation (workforce), the stability and quality of employment, our professional development programmes and compliance with labour rights and special attention to the areas of diversity and inclusion, work-life balance and shared responsibility, and equal opportunity.

Sustainable Management Plan

Main lines in 2022 2023 lines

• Review of the prevention and action protocol for all workplace harassment situations.
• Development and approval of a diversity and inclusion policy for the company.
• Launch of the climate survey as part of the Global Listening strategy.
• Dissemination of the 2nd Enagás Equality Plan.
• Recertification of the Bequal seal as part of Enagás' commitment to the inclusion of people with disabilities.
• Establishment of a diversity and inclusion governance model.
• Launch of initiatives to attract female talent in operational positions.

• Launching of upskilling and reskilling initiatives to boost skills acquisition processes with the aim of fostering the employee employability.

• • Beginning of the negotiations of the fourth collective bargaining agreement of the Enagás Group.

• Global Employee Listening by establishing an action plan derived from the climate survey and launching a survey focused on the evaluation of work-life balance measures and an internal follow-up survey on the 2022 results.
• Start of the actions established in the Diversity and Inclusion Master Plan.
• Launch of a specific programme on bias to strengthen the Diversity and Inclusion model.

1.6%	55.1	78.9%	51	40.3%
increase in workforce compared to 2021	average training hours per employee (€1,239 investment per employee)	of the workforce underwent a performance assessment18	internal promotions (41% women)	women managers and pre managers19
[GRI 203-2]	[GRI 404-1]	[GRI 404-3]

¹⁸ Performance evaluation linked to their professional development and the increase in their fixed remuneration. For employees outside the collective bargaining agreement, this performance evaluation is also linked to variable remuneration.

¹⁹ In the management career.

Our professionals [GRI 2-7, GRI 2-8]

The following outlines the distribution of Enagás' 1,365 professionals20 (1,358.1 FTEs21) by country, age group, professional group and gender at year-end.

Number of professionals per country at year-end 22

Country	2020	2021	2022
Spain	1,314	1,327	1,353
Other countries (1)	16	17	12
Kuwait	0	4	4
Peru	3	3	3
Belgium	4	3	3
Greece	1	2	1
Mexico	6	3	1
France	0	1	0
Switzerland	1	0	0
Chile	1	1	0
TOTAL	1,330	1,344	1,365

Number of professionals and managers by nationality at year-end (1)

Country	2020			2021	2022
	No. of managers	Total no. of employees	No. of managers	Total no. of employees	No. of managers	Total no. of employees
Spain	144	1,283	144	1,299	128	1,319
Venezuela	1	7	1	9	1	10
Germany	0	5	0	5	0	5
France	0	4	0	4	0	5
Peru	0	3	0	3	0	3
Italy	0	2	0	3	0	3
Other nationalities (2)	2	26	2	21	0	20
TOTAL	147	1,330	147	1,344	129	1,365

(1) 100% of employees outside Spain have a permanent full-time contract.

In addition, at the end of 2022, 9 professionals were hired through temporary employment agencies and 45 interns were working at Enagás in Spain23. [GRI 2-8]

(1) The country of birth is considered.

(2) In 2022, these nationalities pertained to the following countries: Argentina, Belgium, Brazil, Colombia, Cuba, Dominican Republic, Ecuador, Mexico, Paraguay, Romania, South Africa, Switzerland and Uruguay.

²⁰ Enagás does not have any zero-hours contracts.

²¹ Full-time equivalent

²² Including the employees at start-ups that are fully consolidated in the financial information and that have been excluded from the scope of the non-financial information (see the 'About our Consolidated Management Report' appendix), the number of employees would rise to 1,396 (421 women and 975 men) See section '2.1 Operating profit, b) Personnel Expenses' of the Consolidated Annual Accounts. ²³ At the end of 2021, 17 professionals were hired through temporary employment agencies and 68 interns were working at Enagás.

Number of employees by professional group and gender at year-end [GRI 405-1] [GRI 2-7]

Stable and quality employment [GRI 2-7]

Enagás maintains stable, quality employment levels with high percentages of permanent and full-time contracts.

Number of professionals by type of contract, working day and gender at year-end (1)

		Women	Men	Total	Total %
2020
Type of	Full-time	360	943	1,303	98.0%
workday	Part-time	20	7	27	2.0%
Type of	Permanent	366	917	1,283	96.5%
contract	Temporary	14	33	47	3.5%
		2021
Type of	Full-time	367	945	1,312	97.6%
workday	Part-time	21	11	32	2.4%
Type of	Permanent	371	926	1,297	96.5%
contract	Temporary	17	30	47	3.5%
2022
Type of	Full-time	387	944	1,331	97.5%
workday	Part-time	22	12	34	2.5%
Type of	Permanent	386	929	1,315	96.3%
contract	Temporary	23	27	50	3.7%

(1) Enagás does not have any zero-hours contracts.

Average annual number of permanent and temporary contracts broken down by sex, both full-time and part-time

		Permanent contract		Temporary contract
	Full-time	Part-time	Total	Full-time	Part-time	Total
			2020
Women	337	22	359	13	0	13
Men	912	5	917	29	1	30
2021
Women	346	24	370	15	0	15
Men	919	3	922	33	1	34
2022
Women	909	13	922	31	0	31
Men	355	20	375	18	0	18

Average annual number of permanent and temporary contracts broken down by age, both full-time and part-time

	Permanent contract			Temporary contract
	Full-time	Part-time	Total	Full-time	Part-time	Total
			2020
<=35 years	237	1	238	36	1	37
36-55 years	798	25	823	6	0	6
>55 years	214	1	215	0	0	0
2021
<=35 years	186	0	186	36	1	37
36-55 years	852	26	878	12	0	12
>55 years	227	1	228	0	0	0
2022
<=35 years	185	1	186	35	0	35
36-55 years	828	29	857	14	0	14
>55 years	251	3	254	0	0	0

Average annual number of permanent and temporary contracts broken down by professional group, both full-time and part-time

	Permanent contract			Temporary contract
	Full-time	Part-time	Total	Full-time	Part-time	Total
2020
Management	138	2	140	0	0	0
Technicians	671	10	681	17	0	17
Administrative	92	7	99	0	1	1
Operational	348	8	356	25	0	25
2021
Management	146	1	147	0	0	0
Technicians	686	9	695	14	0	14
Administrative	86	10	96	1	1	2
Operational	347	7	354	33	0	33
2022
Management	139	3	142	0	0	0
Technicians	689	10	699	13	0	13
Administrative	87	8	95	2	0	2
Operational	349	12	361	34	0	34

The commitments undertaken by Enagás in its Human Capital Management Policy, and the measures and actions implemented, translate into high levels of satisfaction and motivation, as reflected by the low turnover rate, the results of the survey on workplace climate and the awards received by the company in this area.

See the Human Capital Management Policy on the corporate website.

In 2022, there were 216 new recruitments, 66.7% being people aged under 35 and 42.1% women24. [GRI 401-1]

Fifty of these new hires are in preparation for the commissioning of the El Musel LNG terminal (Gijón, Spain), of which 53% are women and 78% are from the region (Asturias). [GRI 203- 2]

Number of new hires during the financial year by age group, professional group and gender [GRI 401-1]

		<35 years	36-55 years	>55 years	Total
	Women	0	1	0	1
Management	Men	0	1	1	2
	Women	21	7	0	28
Technicians	Men	20	10	0	30
Administrative workforce	Women	1	9	0	10
	Men	1	0	0	1
Operational	Women	44	8	0	52
workforce	Men	57	35	0	92
Total		144	71	1	216

Hiring rate (1) by age group, professional group and gender [GRI 401-1]

		<35 years	36-55 years	>55 years	Total
	Women	0.0%	2.3%	0.0%	2.1%
Management	Men	0.0%	1.6%	5.6%	2.4%
	Women	30.4%	5.4%	0.0%	12.4%
Technicians	Men	24.1%	3.3%	0.0%	6.1%
Administrative	Women	20.0%	15.3%	0.0%	11.4%
workforce	Men	50.0%	0.0%	0.0%	11.1%
Operational	Women	137.5%	50.0%	0.0%	108.3%
workforce	Men	76.0%	16.6%	0.0%	24.4%
Total		53.9%	8.6%	0.4%	15.8%

(1) Hiring rate calculated as the ratio of new hires made during the year to the headcount at year-end (both include permanent and temporary contracts).

[GRI 2-7]

²⁴ 32.8% to professionals aged between 36 and 55, 0.5% to professionals over 55 and 57.9% to men.

Number of absences during the financial year by age group, professional group and gender [GRI 401-1]

		<35 years	36-55 years	>55 years	Total
	Women	0	3	1	4
Management	Men	0	15	10	25
	Women	16	10	1	27
Technicians	Men	11	11	3	25
Administrative	Women	0	5	3	8
workforce	Men	0	1	0	1
Operational	Women	13	2	0	15
workforce	Men	34	15	5	54
Total		74	62	23	159

Voluntary and absolute turnover rate by gender [GRI 401-1]

	2020			2021		2022
	Women	Men		Total Women	Men		Total Women	Men	Total
Voluntary turnover rate (1)	3.0%	0.8%	1.4%	1.9%	0.9%	1.2%	3.4%	1.0%	1.67%
Absolute turnover rate (2)	4.6%	5.1%	5.0%	3.0%	3.3%	3.2%	9.1%	6.0%	6.9%

(1) Voluntary turnover rate calculated as the ratio of voluntary departures during the year to the workforce with permanent contracts at year-end.

(2) Absolute turnover rate calculated as the ratio of all professional departures (regardless of their nature) during the year to the workforce with permanent contracts at year-end.

The increase in the absolute turnover rate is partly explained by the separation of 35 professionals from Enagás following the loss of control of the company Enagás Renovable and by the organisational change in the management team carried out during the year to align the company's structure with the new corporate strategy.

Voluntary and absolute turnover rate by age group [GRI 401-1]

Enagás has not carried out any restructuring in recent years, nor does it plan to do so. The company ensures the appropriate transmission of expert knowledge through planned and voluntary departures. In 2022, no involuntary redundancies25 took place at the company.

[GRI 2-7]

Transformation Plan

In order to respond to the company's strategic challenges in accordance with the new 2030 Strategic Plan, Enagás has set out a Transformation Plan which, through the promotion of initiatives with cross-cutting impact, enables it to drive cultural change and the internal transformation of the company with a focus on people. All of this is underpinned by pillars such as talent, diversity, new ways of working and digitalisation, among others.

This plan focuses on the following areas:

• Roles, profiles and resource planning model, based on skills and capabilities to successfully cope with an environment that demands new skills and knowledge. [GRI 404-2]
• Strategic management of diverse and inclusive talent, which places the professional at the centre, promotes self-driven growth and learning, and ensures the commitment, engagement and development of key talent.
• An agile, flexible and more adaptable organisation, with a more cross-cutting, fluid structure, oriented towards adding value and characterised by the adoption of agile values and new ways of working.

professional group and aged <=35, and the other a member of the operational workforce in the age range 36- 55).

²⁵ In 2021, there was one involuntary departure (a man in the operational workforce professional group and the age range 36-55). In 2020, there were two involuntary departures (two men, one in the technician

• Digitalisation and efficiency of processes, boosting customer orientation, improving response time and data-driven decision making. Promoting a security culture that equips professionals with resilience tools.
• New spaces and forms of intelligent work that provide greater flexibility in the current hybrid context, leveraging the use of new technological tools and promoting a culture of health that guarantees the physical and emotional well-being of professionals.

All of this is complemented by a Change Management Programme, which activates the transformation by placing the professional as an active part of the action plan and ensures the success and measurement of the impact on results.

The following are some of the projects carried out in 2022: new approaches to skills-based resource planning, a culture diagnostic, mentoring and coaching programmes, listening and improvement of the employee experience, actions within the agility framework and the adaptation of spaces around the new hybrid context.

Enagás has Corporate Guidelines on the Right to Digital Switch-Off, which moderate possible effects of permanent connectivity and promote a positive impact on people's productivity and well-being. In 2022, the company launched an action plan to raise awareness among all professionals in this area. Through various initiatives, it aims to promote work-life balance. It has also developed a training programme aimed at managers to facilitate the effective management of teams in a hybrid environment and to raise awareness of best practices related to remote working.

See the Corporate Directives on the Right to Digital Switch-Off on the corporate website.

Agility and new ways of working

In addition, Enagás is leading a programme of agility and new ways of working that aims to adopt agile principles throughout the company through specific actions in three areas:

• Adapt the organisation using a more cross-cutting and flexible approach and simplify processes.
• Promote the use of methodologies that seek to adopt collaborative frameworks with early value delivery.
• Promote new behaviours and attitudes that foster communication, transversality and agility training for professionals.

In 2022, from the "Agility Hub", the company continued its commitment to agility and the adoption of new ways of working at the company, highlighting the launch and execution of the following initiatives:

• Development of an agile challenge resolution event focusing on how to evolve Enagás' hybrid model and adopt efficient day-to-day management.
• Promotion of agile project management office communities in different areas of the company ensuring strategic alignment, prioritisation and adoption of agile principles.
• Promotion of the scrum projects community of practice to provide methodological support to project teams in the adoption of scrum frameworks and share best practices.

In addition, in order to continue disseminating agility and new ways of working to all Enagás professionals, a training plan on new methodologies was set out for all company workforce, which will be rolled out throughout 2023 (see the 'Training' sub-section in this section).

Knowledge of internal talent [GRI 404-3]

Evaluation of the performance and skills of our professionals means that we can know our internal talent and guide their training and professional development effectively. Performance assessment allows the identification of strengths and areas of development of professionals regarding the performance of their work and on which the different development plans are developed. The competences and behaviours of professionals are evaluated annually, among others, based on corporate values. The results of these evaluations are linked to their professional development and the increase in their fixed remuneration and, in the case of professionals outside the collective bargaining agreement, in their variable remuneration. In recent years, the performance evaluation model was updated to simplify the process, allow for greater differentiation and increase its frequency (every six months).

The performance evaluation process for professionals not included in the collective bargaining agreement is carried out under a 360º approach. In addition to the manager's evaluation, this includes a peer evaluation by the employee's peer group and, in the case of the management team, a bottom-up evaluation through which the teams evaluate their managers. In the case of Directors, an assessment is also made by the Executive Committee. In 2022, 633 employees (354 in 2021) have been evaluated under this 360º approach.

Moreover, competencies are evaluated through Development Centre workshops, in which participants get feedback on the strengths and areas for development. In 2022, in response to the company's organisational needs during the year, 79 professionals (311 in 2021) participated in a talent identification programme and 51 (237 in 2021) received a skills-based assessment for possible promotion to management positions.

With the aim of continuing to promote the culture of feedback and fostering open communication, Enagás has set up an online platform so that all employees can give and receive feedback from other employees, thus helping identify improvements and highlight achievements.

Percentage of professionals who have received performance assessment by professional group and gender (1) [GRI 404-3]

		2020	2021	2022 (2)
	Women	97.7%	100%	100%
Management	Men	100%	100%	100%
	Women	92.9%	96.6%	100%
Technicians	Men	70.0%	72.1%	69.9%
	Women	64.0%	64.8%	64.8%
Administrative workforce	Men	77.8%	77.8%	77.8%
	Women	40.9%	39.1%	18.8%
Operational workforce	Men	91.4%	90.4%	87.5%
TOTAL		82.0%	82.6%	78.9%

(1) Performance evaluation linked to their professional development and the increase in their fixed remuneration. For employees outside the collective bargaining agreement, this performance evaluation will also be linked to variable remuneration. The Chief Executive Officer and the General Secretary are not included, as they are not covered by the performance evaluation.

(2) The data of the performance evaluation of the group of professionals included in the collective bargaining agreement refer to the 2021 financial year, as the 2022 evaluation campaign ended after the approval of this report.

Professional development programmes

The information obtained from the different evaluations of professionals is used to design customised development plans adapted to the needs identified. On the one hand, development programmes are promoted through on-the-job experience. With this in mind, internal rotation programmes are fostered so that new knowledge can be applied to real situations, and participation in transversal projects or temporary assignments can also be taken advantage of. In 2022, there were 163 internal movements (71 in 2021), of which 47 were promotions, 115 horizontal movements and one expatriation. 43% of hirings selected internal candidates (35% in 2021). 31 interns also stayed on at the company (17 in 2021).

On the other hand, there is also potential to carry out internal and/or external coaching and mentoring programmes.

– In 2022, six employees participated in coaching programmes (six employees in 2021). In addition, professionals in the company have received training and are certified in coaching; they are therefore qualified to carry out internal coaching processes.

– In 2022, Enagás continued to strengthen its internal mentoring programme, aimed at all company employees. In 2022, 83 employees participated in the internal mentoring programme and 16 participated in the external mentoring programme.

Lastly, in order to promote the professional development of employees, an extensive programme of training actions are available on the corporate training portal and these are offered both face-to-face as well as via e-learning.

In addition, there have been two career models at the company. On the one hand, there is the management career, where you are promoted vertically to positions of greater responsibility and based on team management. On the other hand, there is the technical career, aimed at creating and identifying experts in those areas of knowledge that are critical for Enagás.

Training [GRI 404-2]

Enagás is committed to training its professionals from when they join the company and throughout their professional career.

Training begins with the Enagás Welcome Plan, which includes communication and training activities. It includes e-learning training on aspects such as the Code of Ethics, a crime prevention model, a corruption prevention model, human rights and equality, among others, which are compulsory for all professionals, and face-to-face training on the Enagás value chain that offers professionals a global vision of the Company's business.

Besides, depending on the type of work carried out by the new employee, a training plan has been designed in areas related to operations, maintenance and administrative management.

The company's face-to-face training is offered at the Enagás Training School where over 10% of the workforce participate as trainers in different programmes. This face-to-face training in the classroom and in the workplace is complemented by e-learning, mobile training, communities of practice, etc.

Enagás' commitment to training all its employees is evidenced by a training penetration rate26 of 97.1% in 2022 (96.9% in 2021), an average of 55.1 hours of training per employee (45.1 hours in 2021) and an average investment of 1,239 euros per employee (874 euros in 2021)27.

Enagás assesses the satisfaction of professionals who have received training, which in 2022 remained the same as the previous year, 8.7 out of 10.

Enagás has given over 1,200 training courses in 2022

²⁶ The training penetration rate is the number of employees who have received at least one training activity during the year out of the total number of employees at year-end. ²⁷ In 2022, following a review of the cost items associated with training and an improvement in the

traceability of information due to the introduction of new platforms, new cost items associated with training

have been included, such as those associated with training platforms and development of e-learning courses, among others.

As part of Enagás' strategy to promote the continuous training of our employees to guarantee success in the performance of their duties, there are customised training schedules for each of the company's profiles and levels. These schedules are set out to generate progressive improvements in employees' qualification levels, anticipating their short- and long-term needs, and include corporate, operation and maintenance, environmental and health and safety training. The training associated with these training schedules (training counted as compulsory) represents 22% of the training hours and 12% of the economic investment per employee.

There are also training programmes available to employees to develop skills and learn new ways of working. We have programmes based on the skills and behaviours defined for each profile, associated to our leadership model. We also have programmes to learn about and develop behaviours in line with new methodologies such as Agile, Kanban, Lean, Kaizen, Devops or Design Thinking, thus preparing employees to participate in projects and initiatives where these methods are applied.

Within the framework of the Enagás Knowledge Management Model, with the aim of promoting the dissemination and transfer of critical knowledge generated within the company, especially in Infrastructure, the company has continued to work on a series of initiatives, including the promotion of social learning so that employees can earn and share knowledge through the 'Expert Talk' programme. In this programme, experts and company leaders share their knowledge with the rest of the company's professionals through monthly lectures on relevant topics in the gas sector, and the creation of lessons on different subjects that other professionals can consult. Likewise, in order to minimise knowledge loss, we continue with the critical knowledge transfer plans linked to the relay plans.

Hours of training (1) received by professional, by professional group and gender [GRI 404-1]

(1) Average training hours out of total hours completed during the financial year in relation to the average number of employees.

Total hours of training courses completed during the financial year by professional group [GRI 404-1]

	2020	2021	2022
Management	10,381	10,932	10,788
Technicians	30,797	31,494	40,688
Administrative workforce	3,831	5,654	2,225
Operational workforce	16,497	12,583	20,512
TOTAL	61,506	60,663	74,213

Diversity and Inclusion [GRI 3-3]

The Enagás Diversity and Inclusion Policy sets out the commitments and lines of action to position diversity management and inclusion as key elements of Enagás' global strategy. The company promotes a culture that ensures a diverse and inclusive environment, and fosters a working environment in which trust and mutual respect prevail and where integration and recognition of individual merit are hallmarks of Enagás.

See the Diversity and Inclusion Policy on the corporate website.

This policy promotes equal opportunities as the central axis around which human resources policies should be oriented, with the aim of creating strategic assets and promoting the full personal and professional development of company employees at all times, thus consolidating the right of all employees to truly equal opportunities and equal treatment.

It also includes the integration of diversity in the main human resources processes such as access to employment, personal progress and professional development and promotion, all while guaranteeing a management free of bias associated with differences.

Enagás expressly rejects any discrimination based on gender, age, disability, nationality or culture, race, religious beliefs, thought and sexual orientation, or any other personal, family, economic or social condition among its employees, fostering work environments free of direct and indirect discrimination, harassment or other forms of intolerance at all levels of the organisation.

The company is determined to create diverse and inclusive work environments, where each and every person feels that they can be themselves and that they are valued, without prejudice, for their work and their talent.

It also reflects the company's commitment to the promotion of policies and measures to enhance shared responsibility and work-life balance of its professionals. In the same way, and safeguarding freedom of management, Enagás extends this commitment to all its stakeholders, paying special attention to suppliers and contractors as indispensable partners in achieving the company's business objectives (see the 'Supply chain' section in this chapter).

2022

EllasTeLoCuentan (#SheTellsYou) is a campaign to showcase the talent of Enagás women through their testimonies. The campaign was launched in February 2022, on the International Day of Women and Girls in Science, and will continue throughout 2023. It is in line with the company's commitment to increase the presence of women in the workforce, with special emphasis on technical profiles.

In order to achieve this commitment, Enagás, aware of the richness that the confluence of different knowledge, skills and experiences brings to the organisation, bases its Diversity and Inclusion Strategy on the following pillars:

and growth of men and women; to promote an environment and conditions in which all people aspire to, and are able to, achieve positions of responsibility.	the workplace.	integration of people with disabilities (physical, sensory, intellectual) into	environment, to mix, to find common ground and to contribute their best, being true to themselves, both as individuals and as high performing teams.
Cultural	Thinking		LGBTQI+
To take advantage of the multiculturalism inherent to companies (different nationalities) to improve the employee experience, using the differences in habits, language and thinking that this implies, rather than letting these be a barrier to achieving team integration and goals.	commitment.	To create a culture and professional environment where the uniqueness of beliefs, education, skills, thinking and preferences contributes to enhancing employee innovation, sound decision-making and	To make visible, integrate and normalise LGBTQI+ groups in the professional environment, improving their inclusion regardless of their sexual orientation, gender identity and gender expression.
06/2022
with REDI (Business Network for Diversity and LGBTQ+ Inclusion).			As part of International LGBTQ+ Pride Day, Enagás organised an initiative to raise awareness of this group in the workplace. This initiative is part of the company's collaboration agreement

Gender Functional Generational

To make progress in the

To guarantee equal treatment and opportunities in the hiring, development

To encourage different generations to work together in a favourable

Gender diversity

In the area of gender diversity, Enagás guarantees equal opportunities for men and women.

To this end, it has an Equality Plan that sets out a framework for action to promote effective equality, equity, merit, personal progress, shared responsibility and work-life balance among all professionals.

Consult the 2nd Gender Equality Plan on the corporate website.

06/2022

Enagás signed its 2nd Equality Plan in 2022, continuing the company's commitment to equal opportunities for women and men. This plan tackles the challenges of the current context through specific measures in the following areas of action: awareness-raising and communication; recruitment and hiring; training, promotion and professional development; remuneration; risk situations for women at work: harassment; gender-based violence; underrepresentation of women; co-responsible exercise of the rights of personal, family and working life and working conditions and occupational health.

Enagás promotes measures aimed at increasing the participation of women in positions of responsibility, such as the 'Women with Talent' development programme, the 'Promociona' project and the 'Progresa' project. The latter ones are being developed in collaboration with the CEOE, and aim to create networking groups to provide high-potential women with the tools and skills necessary to boost their professional careers and take on positions of high responsibility in the future. 2022 saw the launch of the Management Development Programme 'Women with High Potential', together with the EOI and the mentoring programme for managers, AED Lead Mentoring.

In 2022, Enagás participated in the 2nd Target Gender Equality programme of the United Nations Global Compact in Spain, sharing best practices and collaborating in the development of the programme. It has also collaborated with the Equality Platform of the Energy Sector to promote equality and inclusion in the energy sector in Europe.

06/2022

In June 2022, Enagás entered the IBEX Gender Equality Index. This index, coordinated by BME (Spanish Stock Exchanges), was launched in November 2021 to promote gender equality. It identifies listed companies in Spain that meet the criteria for the representation of women in management bodies.

Enagás has a prevention and action protocol for any situation of harassment in the workplace, the aim of which is to set out guidelines for identifying a situation of harassment, whether psychological or moral, sexual, or gender-based, among others, in order to resolve a discriminatory situation, ensuring that the rights of the victims are guaranteed at all times.

Consult the Prevention and action protocol for any workplace harassment situation on the corporate website.

05/2022

Enagás has promoted an initiative in which several professionals took part in a meeting with women trained in STEM careers, with the aim of attracting female talent to join Enagás' operational areas.

Percentage of women in the workforce and in management positions at year-end [GRI 405-1]

	2020	2021	2022
Women managers (1)	29.9%	30.6%	36.4%
Women in the Executive Committee (One level of reporting to the Chief Executive Officer)	18.2%	16.7%	33.3%
Women senior managers (Two levels of reporting to the Chief Executive Officer)	26.8%	28.2%	39.4%
Other women managers (Three levels of reporting to the Chief Executive Officer)	32.6%	33.3%	35.6%
Women managers and pre-managers (<= four levels of reporting to the Chief Executive	37.1%	37.3%	40.3%
TOTAL women in the workforce	28.6%	28.9%	30.0%

(1) In 2019, a new career model, the technical career, was implemented aimed at creating and identifying experts in those areas of knowledge that are critical for Enagás. Therefore, for the purpose of calculating the percentage of women in management and pre-management positions, the workforce included in that technical career are excluded.

In relation to gender diversity in the company's organisational structures, 22.3% of organisational positions considered to be STEM28-related and 22.9% of positions that directly contribute to revenue generation are filled by women.

The Enagás remuneration model factors in considerations of equality and non-discrimination, establishing differences due solely to the worker's position in the organisation and professional experience. Furthermore, the Enagás Collective Bargaining Agreement sets out different salary levels based exclusively upon objective work criteria. In 2022, Enagás' minimum wage, established by the Collective Bargaining Agreement, was 1.6 times the national minimum wage in Spain, regardless of gender (1.5 times in 2021) [GRI 202-1].

²⁸ Science, Technology, Engineering and Mathematics.

Evolution of the relationship between base salary of women and men by professional group (1) [GRI 405-2]

		2020	2021	2022
	Chief Executive Officer (2)	N.A.	N.A.	N.A.
Manageme nt	Other members of the Executive Committee	0.89 (3)	0.93 (3)	1.00
	Other managers	0.90	0.91	0.95
Technicians			1.00	1.00
	Administrative workforce	1.08	1.06	1.07
Operational workforce		0.87	0.89	0.80
	Ratio	0.97	0.98	1.01
TOTAL	Percentage (4)	2.54%	2.12%	-1.21%

N.A. Not applicable

(1) Ratio of average base salary of women to average base salary of men. Base salary is defined as the fixed gross annual salary at December 31. This takes into consideration all professionals in Spain with a permanent or temporary contract, both full-time and part-time (99.7% of the workforce). In the case of part-time workforce, the base salary has been extrapolated to a full-time salary for comparability.

(2) There are no women in this professional group.

(3) Unrepresentative data, as there are less than three employees in this group for one of the genders. (4) Figure calculated as the difference between the average base salary of men and women divided by the average base salary of men.

Evolution of the relationship between average remuneration (1) of women and men by professional group [GRI 405-2]

		2020	2021	2022 (2)
	Chief Executive Officer (3)	N.A.	N.A.	N.A.
Manageme nt	Other members of the Executive Committee	0.90 (4)	0.95 (4)	0.87 (4)
	Other managers	0.87	0.89	0.93
Technicians		0.93	0.95	0.95
Administrative workforce		1.12	1.09	1.07
Operational workforce		0.85	0.85	0.86
	Ratio	0.88 0.90		0.98
TOTAL	Percentage (5)	12.16%	10.14%	1.88%

N.A. Not applicable

(1) Ratio of average remuneration of women to average remuneration of men. Average remuneration that includes: base year salary at December 31, variable remuneration, allowances, payments to long-term savings plans and any other item, such as overtime. Only the transfer allowance is excluded, as it is not considered remuneration as such; it accounts for less than 0.1% of the total amount of remuneration. All professionals in Spain with permanent and temporary contracts, both full and part-time, who have remained in the company throughout the year (90.5% of the workforce) are considered, with the exception of the Chief Executive Officer. In the Chief Executive Officer's case, to facilitate comparability (appointment in February 2022), the annual base salary was considered together with the actual remuneration received during the year. In the case of part-time workforce, the base salary has been extrapolated to a full-time salary for comparability.

(2) In 2022, the long-term incentive plans (2019-2021) were settled, significantly increasing the remuneration of the company's employees. The allocation of these incentive plans was structured according to the professional group's degree of contribution to the established targets.

(3) There are no women in this professional group.

(4) Unrepresentative data, as there are less than three employees in this group for one of the genders. Although there were three women on the Executive Committee in 2022, only two were considered for the

wage gap calculation, as one of them was not with the company for the whole year. (5) Figure calculated as the difference between the average remuneration of men and women divided by the average remuneration of men.

In 2022, there was a significant decrease in the wage gap due to the greater presence of women in managerial and pre-management positions and due to the exclusion of the nonexecutive Chairman. The wage gap in 2022, considering total remuneration was 0.98 (1.88% difference between men's and women's base salary).

When analysing the wage gap by professional group, the increase in 2022 in the category "Other Executive Committee members" is explained by the changes made to the Committee during the year, in line with the new corporate strategy and by the differences in seniority in management positions of the members of the Committee. This has led to differences in other remuneration without identifying a wage gap in relation to the basic salary in this professional group (1.00).

The difference in the professional group "Other executives" (0.93) has decreased in recent years, in line with the development and promotion of female talent (women managers and pre-managers). Nevertheless, the current difference is due to a greater presence of men in this group (63%), as well as a greater seniority of males in these groups with respect to women.

The difference in salary in the professional group of administrative workforce (1.07) is due to the fact that this is a category made up mostly of women (91%), in which some positions have function-related bonuses.

Similarly, the difference in the category of operational workforce (0.86) is explained by a greater presence of men (89%) with an average seniority greater than that of women (an average of 14.8 years for men compared to 3.6 years for women). In this regard, Enagás promotes the incorporation of women in the technical specialist professional group through initiatives such as the search for female recruits at vocational schools, as was done in the new hires for the El Musel LNG terminal, where 53% of the professionals hired are women.

Changes in average remuneration (1) by professional group, age and gender [GRI 2- 19, GRI 405-2]

		2020	2021	2022 (2) (year of settlement of long-term incentive plans)
	Professional group
	Chief Executive Officer (3)	1,603,997	1,592,399	1,377,688(4)
Managem ent	Other members of the Executive Committee	597,860	561,410	595,687
	Other managers	145,614	150,128	176,791
Technicians		64,713	66,243	73,404
Administrative workforce		45,089	46,414	51,109
	Operational workforce	52,957	53,067	58,686
	Age range
<=35 years		51,541	51,074	55,556
36-55 years		75,514	76,611	83,893
>55 years		96,597	95,912	93,164
	Gender
Women		68,159	70,493	80,573
Men		77,598	78,451	82,116

(1) Average remuneration that includes: base year salary at December 31, variable remuneration, allowances, payments to long-term savings plans and any other item, such as overtime. Only the transfer allowance is excluded, as it is not considered remuneration as such; it accounts for less than 0.1% of the total amount of remuneration.

All professionals in Spain with permanent and temporary contracts, both full and part-time, who have remained in the company throughout the year (90.5% of the workforce) are considered, with the exception of the Chief Executive Officer. In the Chief Executive Officer's case, to facilitate comparability (appointment in February 2022), the annual base salary was considered together with the actual remuneration received during the year. In the case of part-time workforce, the base salary has been extrapolated to a full-time salary for comparability.

(2) In 2022, the long-term incentive plans (2019-2021) were settled, significantly increasing the remuneration of the company's employees. The allocation of these incentive plans was structured according to the professional group's degree of contribution to the established targets.

(3) Data for 2020 and 2021 are the average remuneration of the Executive Chairman and the Chief Executive Officer. The figure for the 2022 financial year does not include the Chairman, as he became non-executive Chairman in April 2022.

(4) This amount differs from the amount reported in the Annual Report on Directors' Remuneration 2022, as the information reported in this table excludes interim income (30.6 thousands of euros for the Chief Executive Officer) and considers the annual base salary for comparison purposes.

enaqas

			2020	2021	2022 (2) (year of settlement of long - term incentive plans)
	Chief Executive	Women	N.A. (4)	N.A. (4)	N.A. (4)
	Officer (3)	Men	1,603,997	1,592,399	1,377,688 (5)
Managem ent	Other members of	Women	549,740 (6)	539,303 (6)	540,091
	the Executive	Men	611,609	566,937	617,925
	i	Women	132,106	138,519	168,460
	Other managers	Men	151,781	155,737	181,614
Technicians		Women	61,657	63,862	71,043
		Men	66,130	67,333	74,445
Administrative workforce		Women	45,548	46,798	51,419
		Men	40,808	42,788	48,014
Operational workforce		Women	45,158	45,520	50,599
		Men	53,314	53,472	59,097
TOTAL		Women	68,159	70,493	80,573
		Men	77,598	78,451	82,116

Changes in remuneration(1) by professional group and gender [GRI 2 -19, GRI 405 -2]

N.A. Not applicable

(1) Average remuneration that includes: base year salary at December 31, variable remuneration, allowances, payments to long -term savings plans and any other item, such as overtime. Only the transfer allowance is excluded, as it is not considered remuneration as such; it accounts for less than 0.1% of the total amount of remuneration.

All professionals in Spain with permanent contracts, both full and part -time, who have remained at the company for the entire year (90.5% of the workforce) are considered, with the exception of the Chief Executive Officer. In the Chief Executive Officer's case, to facilitate comparability (appointment in February 2022), the annual base salary was considered together with the actual remuneration received during the year. In the case of part -time workforce, the base salary has been extrapolated to a full -time salary for comparability.

(2) In 2022, the long -term incentive plans (2019 -2021) were settled, significantly increasing the remuneration of the company's employees. The allocation of these incentive plans was structured according to the professional group's degree of contribution to the established targets.

(3) Data for 2020 and 2021 are the average remuneration of the Executive Chairman and the Chief Executive Officer. The figure for the 2022 financial year does not include the Chairman, as he became non -executive Chairman in April 2022.

(4) There are no women in this professional group.

(5) This amount differs from the amount reported in the Annual Report on Directors' Remuneration 2022, as the information reported in this table excludes interim income (30.6 thousands of euros for the Chief Executive Officer) and considers the annual base salary for comparison purposes.

(6) Non -representative data, as there are less than three professionals in this professional group.

Generational diversity

The company is a partner of the Generation and Talent Observatory which encourages innovation and promotes active policies of generational diversity based on values and ethics. Enagás also collaborates in the dissemination of best practices in this area through Capital Radio's Human Resources forum, and has sponsored and collaborated in various studies such as 'Diagnosis of generational diversity: analysis of intergenerational talent in companies', 'Intergenerational leadership' and 'Intergenerational health and well-being'.

Additionally, Enagás employees have been provided with online training on generational diversity, deepening the intergenerational culture present at the company.

2022

Enagás has collaborated with the Generation and Talent Observatory on the Diversity 360º model, the aim of which is to establish a tool for comprehensive diversity management in the workplace.

Number of professionals by age group and professional group at year-end [GRI 2-7, GRI 405-1]

	2020				2021			2022
	<=35 years	36-55 years	>55 years	Total		<=35 years 36-55 years	>55 years	Total		<=35 years 36-55 years	>55 years	Total
Management	3	119	25	147	0	122	25	147	1	108	20	129
Technicians	173	422	107	702	134	465	113	712	152	430	132	714
Administrative	10	66	22	98	5	68	24	97	7	63	27	97
workforce Operational workforce	88	229	66	383	77	227	84	388	107	227	91	425
Total	274	836	220	1,330	216	882	246	1,344	267	828	270	1,365

Percentage of professionals by professional group, age group and gender at yearend [GRI 405-1]

2020
		Management Technicians			workforce	Administrative	Operational workforce
Categories	Women	Men	Women	Men	Women	Men	Women	Men
<35 years	2.3%	1.9%	39.1%	17.8%	10.1%	11.1%	59.1%	20.8%
36-55 years	93.2%	75.7%	52.0%	63.9%	68.5%	55.6%	40.9%	60.9%
>55 years	4.5%	22.3%	8.9%	18.2%	21.3%	33.3%	0.0%	18.3%

2021

	Management		Technicians		Administrative workforce		Operational workforce
Categories	Women	Men	Women	Men	Women	Men	Women	Men
<35 years	0.0%	0.0%	27.6%	14.6%	4.5%	11.1%	56.5%	17.5%
36-55 years	95.6%	77.5%	62.5%	66.7%	71.6%	55.6%	0.0%	62.2%
>55 years	4.4%	22.5%	9.9%	18.8%	23.9%	33.3%	43.5%	20.3%

2022

	Management		Technicians		Administrative workforce		Operational workforce
Categories	Women	Men	Women	Men	Women	Men	Women	Men
<35 years	2.1%	0.0%	30.5%	17.0%	5.7%	22.2%	66.7%	19.9%
36-55 years	93.6%	77.1%	57.1%	61.7%	67.0%	44.5%	33.3%	56.0%
>55 years	4.3%	22.9%	12.4%	21.3%	27.3%	33.3%	0.0%	24.1%

Disability

Enagás has procedures and policies in place to promote equal opportunities and nondiscrimination for people with disabilities. The company works towards social and labour inclusion through direct hiring (seven people in the workforce at year-end29) and indirect job creation for severely disabled profiles, through collaboration agreements with foundations and special employment centres.

The company also supports corporate volunteering initiatives to promote the social integration of people with disabilities and to raise awareness among Enagás professionals of the needs of this group (see the 'Corporate volunteering programme' sub-section in the 'Local communities' section in this chapter), as well as training and disability awareness measures.

In addition, Enagás has taken action to improve accessibility for people with disabilities, such as the progressive elimination of architectural barriers at our facilities and the 'AA' accessibility level of our corporate website.

12/2022

The Certification Committee of the Bequal Foundation, a non-profit organisation that recognises organisations that are socially responsible towards people with disabilities, has renewed Enagás' certification in the PLUS category. This certification recognises the company's commitment to people with disabilities as one of the main lines of action included in its Diversity and Inclusion policy. The Bequal certificate verifies not only companies' legal compliance, but also the integration of disability-inclusive policies across various areas of the company.

Bequal's certification demonstrates a commitment to the 2030 Agenda, specifically SDG 8 "Decent Work and Economic Growth" and SDG 10 "Reduce Inequality".

Equality at Work accolade since 2010

Bequal Plus Seal for the company's commitment to the social inclusion of people with

Adherence to the Diversity Charter (plurality at the company)

Endorsement of the UN Women's Empowerment principles

78

²⁹ At the end of the 2021 and 2020 financial years, there were six and seven persons with disabilities, respectively.

Work-life balance and shared responsibility [GRI 401-2]

For Enagás, work-life balance means reconciling employees' needs and interests with those of the company.

The company has new working day and time parameters for the distribution of its 1,674 annual working hours. There are two periods, summer and non-summer, with a divided or continuous working day, flexible in both cases, to be chosen by the professionals depending on the area of activity to which they are assigned30. In addition, Enagás has established a teleworking system that allows it to respond to the current context, in which 91% of professionals whose position is compatible with this type of work voluntarily participate.

Enagás has been certified as an Family-Friendly Company since 2007; in 2022, it obtained the highest rating (A+ Level) for excellence in work-life balance from the Más Familia Foundation. Work-life balance is a voluntary commitment that Enagás has made to contribute to the professional and personal success of its workforce.

To this end, the company has more than 130 measures aimed at reconciling the different aspects of people's lives. They support professional and personal development and facilitate a balance between the different dimensions of each person's life, as well as those of their immediate family. Work-life balance becomes a key instrument to guarantee equality of opportunity.

Enagás believes that the Family-Friendly Company model is integrated into the management of the business and is a valuable tool that has also allowed the company to be perceived as an excellent place to work. The Family-Friendly Company model is subject to an external audit, which evaluates, among other aspects, the return on investment of work-life balance and obliges the company to always be in a process of continuous improvement.

6/2022

Enagás has obtained the highest rating for excellence in work-life balance, A+ Level, according to the Family-Friendly Company model of the Más Familia Foundation, making it the first company in the energy sector in Spain to achieve this category. This acknowledgement highlights the commitment made by the company to ensuring that our employees achieve a balance between their professional, personal and family lives, and to a business culture based on flexibility, responsibility and mutual respect and commitment.

Family-Friendly Company certificate, A+ Level of Highest Excellence

Some of the relevant reconciliation measures available to our employees31 are as follows:

Family

• Flexible Remuneration Plan: includes health insurance, childcare, travel card and training.
• Study allowance for children of professionals covered by the collective agreement.
• 80% subsidy on special schooling expenses for employees who have children with disabilities.
• 'Día sin Cole' (No School Day) programme and subsidised urban summer camps in Madrid for employees' children on workdays throughout the school year32.
• Specific measures for female workers who are victims of gender-based violence.
• Subsidy for the purchase or rental of vehicles powered by compressed natural gas (CNG).
• Alares Family Support Programme:
• 'Mi Asistente' (My Assistant) personal manager, which takes care of all necessary day-today procedures and information.
• Free assistance with various administrative processes, such as procedures for vehicle purchase and sale, procedures for the birth of a child, renewal of driving licences, applications for or renewal of licences and visas, applications for certificates and reports and procedures involving municipal records.
• Free service for selecting domestic helpers and healthcare personnel.
• Services for making online wills and living wills, expert legal advice, signings before a notary public and registrations.
• Specialised treatment (physiotherapy, speech therapy) and 56 free hours of home help service in the event of convalescence, illness or accident.
• Digital erasure service to remove personal information from the Internet.
• "My mediator" service, offering the assistance of a person authorised by the Ministry of Justice for conflict resolution.
• Ecological washing of the employee's personal vehicle 32.

Work flexibility

• Flexibility in start times and lunch break.

³³ For all positions compatible with this type of work.

• Flexible working (teleworking)33.
• Shorter workday during the summer and every Friday throughout the year.
• Division of annual leave into a maximum of four periods.

³⁰ Except shift personnel.

³¹ Unless the scope is specified, these measures are aimed at 100% of the workforce of the category to which they apply, including both full- and part-time employees. ³² At corporate headquarters, where 44% of the company's professionals and 70% of its women are located.

Quality employment

• Annual medical check-up and flu vaccine campaigns.
• 90% subsidy on the cost of private medical healthcare insurance for employees and 100% for their children. Medical cover on international trips.
• Meal subsidies (canteens, financial aid, restaurant vouchers).
• Temporary disability allowance: payment of 100% of the fixed gross annual salary in the event of illness, accident or parental leave and childcare.
• Extension of the period during which a reduction in working hours for childcare purposes can be requested (until the child is 14).
• Access to a programme of discounts and exclusive prices on a wide range of online products, services and leisure.
• Pension plans for employees with two years' effective or recognised service.
• Healthy food corner 34.
• Help towards sports activities.
• Lactation room34.

[GRI 401-2]

Enagás has over 130 work-life balance measures that favour the professional and personal development of its workforce

Social benefits most used by employees [GRI 401-2]

	% of costs borne by the company	% of workforce taking advantage of benefits
Meal subsidies (financial assistance and restaurant vouchers)	100%	90.7%
Group death and disability insurance (1)	100%	100%
Healthcare insurance for employees and their dependants	92.1%	91.2%
Pension plans (2)	89.1%	88.3%

(1) Social benefit for newly recruited employees, with less than two years' service. Subsequently, this benefit was included in the Pension Plan.

(2) Benefit for employees with at least two years' service at the company.

Furthermore, Enagás improves and extends paid leave beyond the provisions of current labour regulations (death of a close relative, illness, special circumstances, etc.). With respect to childcare, in addition to the maternity/paternity leave established by law (currently 16 weeks for each parent), employees of both genders can take fifteen working days of paid leave to

care for a child under nine months of age (breastfeeding). Enagás has also extended the period during which a reduction in working hours for childcare purposes can be requested (formerly until the child is 12; now until the child is 14). [GRI 401-3]

Parental leave [GRI 401-3]

	Women	Men	Total
No. of professionals entitled to parental leave in 2022	22	55	77
No. of professionals taking parental leave in 2022	22	55	77
No. of professionals who returned to work in 2022 after the end of parental leave	19	54	73
No. of professionals who returned to work after the end of parental leave in 2021 and who were still employed 12 months after returning to work	13	38	51
Return-to-work rate (1)	86.4%	98.2%	94.8%
Retention rate (2)	81.3%	92.7%	89.5%

(1) Total number of professionals who returned to work after parental leave divided by the total number of professionals who were required to return to work after parental leave.

(2) Total number of professionals retained 12 months after returning to work from parental leave among the total number of professionals who returned from parental leave in the previous period.

In 2022, Enagás launched the Reconexión (Reconnection) programme, a support programme designed for Enagás employees who return to the company after parental leave, a leave of absence to care for a child or dependent family member, or prolonged temporary disability, with the aim of facilitating their adaptation and return.

06/2022

For the sixth consecutive year, Enagás is offering its training programme 'Aliados con la educación' (Education Allies) together with the NGO 'Educar es Todo' (Education is Everything). This programme consists of four online training sessions, in which various multidisciplinary experts share their experiences and advice with Enagás professionals on how to face day-to-day challenges related to education.

Collective bargaining [GRI 2-30]

In 2020, the company signed the Enagás Group's third collective bargaining agreement to provide the company with a framework of employment stability over a three-year period in line with the current socio-economic context and the needs and development of the company.

³⁴ At corporate headquarters, where 44% of the company's professionals and 70% of its women are located.

This collective bargaining agreement covers, among other matters, the health and safety of all Enagás Group employees (see the 'Health and safety' section of this chapter).

In addition, Enagás enters into collective bargaining and carries out regular consultations with the workers' legal representation regarding working conditions, remuneration, dispute resolution, internal relations and issues of mutual concern. In 2022, various working group meetings were held with social representatives, including the constitution of the negotiating table for the Enagás Group's fourth Collective Bargaining Agreement, meetings to negotiate the Equality Plan and ordinary meetings of the joint committees established in the Collective Bargaining Agreement. All of this has led to various agreements, including the signing of the 2nd Enagás Group Equality Plan.

For employees not included in the Enagás Group's collective bargaining agreement, the regulations governing working conditions in general are those outlined in the Spanish Workers' Statute. However, those conditions of the Enagás Group collective bargaining agreement that improve on those established in the Workers' Statute are applicable to 100% of the workforce.

In 2022, the Negotiating Committee for the Enagás Group's 4th Collective Bargaining Agreement was set up.

Percentage of employees covered by the Collective Bargaining Agreement by professional group at year-end (1)

	2020	2021	2022
Technicians	28.8%	25.4%	26.2%
Administrative	84.7%	84.5%	84.5%
workforce Operational workforce	100.0%	100.0%	100.0%
Total	50.2%	48.4%	50.8%

(1) These data refer to professionals in Spain.

See the Enagás Group 2020-2022 Collective Bargaining Agreement on the corporate website.

[GRI 2-30]

Employee satisfaction and motivation [GRI 2-29]

As part of the Global Listening Strategy, and in line with the Company's Transformation Plan, Enagás has launched a new edition of the climate survey in 2022 with the aim of gathering the views of Enagás professionals on various issues that will enable the company to improve and advance as a whole. These surveys are carried out regularly every two years.

This year, participation by our professionals increased compared to the previous survey, reaching 77% (73% in 2020). Overall employee satisfaction stood at 72% (82% in 2020) and the sustainable engagement index at 82% (91% in 2020), the latter remaining in line with external benchmarks.

As conclusions of the results of the climate survey, 94% of employees consider Enagás a good place to work, and most of them understand how their work contributes to the business objectives. In addition, the categories of 'stakeholder orientation', 'sustainable engagement' and 'internal relations' are highly rated. The categories 'inclusion and diversity', 'well-being' and 'stakeholder orientation' are the most stable categories compared to the previous survey.

In 2023, the Global Listening Strategy will be continued through specific surveys, and action plans will be defined based on the areas of improvement detected through the climate survey.

In 2023, Enagás received the Top Employer certification for the thirteenth consecutive year.

3.3 Health and Safety

[GRI 3-3]

Health and safety is one of Enagás' values, as is reflected in the Company's Health and Safety, Environment and Quality Policy. From an overall safety perspective, the Company seeks the involvement of leaders and the development of a behavioural model for health and safety that guarantees the operation and maintenance of the facilities, processes and equipment, in safe conditions, so that people can carry out their work in optimal health and safety conditions. The key aspects that we address in our approach to overall health and safety are the management of occupational risk prevention, including road safety, crisis

Sustainable Management Plan

Main lines in 2022 2023 lines

• Preparation of lessons learned from incidents; dissemination of the same among Enagás professionals and contractors.
• Minimisation of risks derived from digital transformation, promoting the right to digital switchoff through awareness-raising tools.
• Assessment and verification of Crisis Manual effectiveness through simulations.
• Improvement of cyber risk management in the supplier life cycle.
• Enhancement of cybersecurity measures in industrial information systems.
• Performance of a black box white box penetration test to evaluate the maturity level of security controls on the newly-developed SAP version.

management, industrial safety and major accidents and emergencies, information security and the health and well-being of professionals.

• Enhancing physical and mental well-being: 'Hello Health!' campaigns
• Guide Project: Improvement in the accident rate indicators for own workforce and contractors.
• Consolidation of resilience culture at the company through different lines of action.
• Development of health and safety requirements for the transformation of existing or new infrastructures for new energy (hydrogen) projects.
• Training, sensitivity-raising and awareness-raising for professionals regarding cybersecurity in order to enhance and improve their ability to detect and respond to possible cyberattacks.
• Increase the cybersecurity maturity levels of industrial and corporate systems.

0.05	100%	2.02	13,955	3.58%
Lost time injury severity rate (own workforce + contractors) [GRI 403-9]	of activity certified under ISO 45001 [GRI 403-1]	Lost time injury frequency rate (own workforce + contractors) [GRI 403-9]	training hours in health and safety [GRI 403-5]	Rate of absenteeism [GRI 403-9]

Health and Safety Management 35

Health and safety management system [GRI 416-1]

The Enagás Group health and safety management system is certified under ISO 45001 and has procedures and systems that seek to prevent injuries and illnesses caused by working conditions in addition to the protection and health promotion of employees. This system, which is subject to internal audits and externally certified, covers 100% of the professionals and contractors (more than 4,150 people in 2022) who carry out work on Enagás infrastructures. [GRI 403-1, GRI 403-7, GRI 403-8]

Enagás also has a Road Traffic Safety Management System certified in accordance with ISO39001. In this area, the company has a Mobility and Road Safety Plan, Road Safety Guidelines and a protocol for vehicle use. There is also a Sustainable and Safe Fleet Management Manual and a Guide to Good Road Safety Practices for fleet management.

Enagás promotes safety throughout its supply chain and requires ISO 45001 certification as part of its approval process for suppliers of certain families of products or services. Furthermore, in order to guarantee the coordination of business activities and the coordination of health and safety on building projects, the company has the Enagás Contractor Access System (SACE) to manage the safety of its suppliers, contractors and the whole subcontracting chain. This system offers contractors the operating safety procedures applicable to the possible risks involved in the works they perform. [GRI 403-7]

Employees and contractors have access to various channels through which they can participate in and consult the operation, implementation and assessment of the management system. These include the bulletin board, workforce letters, forms, meetings, internal memos, informational pamphlets, posters and/or electronic communications, as well as any other method that can be documented and guarantees receipt by the intended recipient. Additionally, there are cross-company and cascading communication channels that also cover health and safety issues. Enagás also has a chatbot (virtual assistant) to answer questions at a company level, highlighting questions about health and safety issues and COVID-19, among others. [GRI 403-4]

Enagás has various employee representative bodies where employees may exercise their participation and consultation rights. Different committees comprise health and safety officers and management representatives. The Health and Safety Committees36 meet every three months, while the Group and Enagás Transporte SAU Intercentre Health and Safety Committees meet with a frequency set out in the Collective Bargaining Agreement. There is also a suggestion box on the Intranet, which is available to all employees. [GRI 403-4]

As part of its COVID-19 crisis management framework, Enagás has an action protocol aimed at ensuring the health and safety of its employees, the integrity of its infrastructures and security of supply. Enagás holds AENOR COVID-19 Action Protocol certification, as well as the ISO 45005 certification for occupational health and safety management - General guidelines for safe working during the COVID-19 pandemic - recognising the company's COVID-19 management model.

Awareness-raising [GRI 403-5]

In 2022, a total of 13,955 hours of health and safety training were provided (15,301 hours in 2021); 69% of employees received training (75% in 2021).

Health and Safety training is a key part of any preventative action to improve worker protection from the hazards that may be present in daily operations. This is why Enagás has designed a training schedule for all different job profiles at the company that sets out the specific training activities needed for each risk group. In 2022, these actions will notably include training in safety at electrical facilities, work with exposure to natural radiation, instrumentation in explosive atmospheres and general training in occupational risk prevention, health and safety, the health and safety management system, hygiene and ergonomics and first aid.

07/2022

Enagás promotes World Road Safety Day. The main objectives of this initiative are to raise awareness among professionals of the importance of using safety systems while driving and to inform them of the latest developments in traffic regulations.

In 2022, more than 55 informational messages have been sent to all Enagás personnel through the corporate mailbox with info bites about COVID-19, promotion of health programmes (steppers challenges, vaccines, etc.), procedures, and so on. [GRI 403-4, GRI 403-6]

Enagás is also providing training to all its contractors through the SACE platform. This training is complementary to the face-to-face chats at infrastructure facilities where particularly hazardous work may be carried out. In 2022, 5,656 hours of training (2,119 hours in 2021) were delivered through the SACE platform to 2,828 contractors from 718 contractor companies.

See the Health and Safety, Environment and Quality Policy, as well as the Prevention of Major Accidents Policy and the Corporate Road Safety Directives on the corporate website

³⁵ All information in this chapter on health and safety refers to Enagás Group employees included in the Group's Joint Prevention Service (99.7% of the workforce), excluding employees of the companies Enagás México, S.A. de C.V. and Enagás Perú, S.A.C.

³⁶ The Health and Safety Committees are statutorily established for centres with more than 50 workers. In centres with fewer than 50 workers in which there is a Prevention Delegate, health and safety meetings are held regularly.

Safety indicators 37 [GRI 403-9]

Lost time injury frequency rate

Number of accidents causing injuries and sick leave per million hours worked. (Number of accidents leading to sick leave x 106 / number of hours worked).

* The lost time injury frequency rate by gender was 1.94 for males and 0.00 for females in 2022, 3.79 and 1.62 respectively in 2021, and 5.18 and 0.00 respectively in 2020.

In 2022, there were three lost-time accidents among our own workforce38 (all of them in men). All were categorised as minor accidents by the Social Security Mutual Society, the main causes being falls and blows and posture / ergonomic issues. In relation to contractor personnel, in 2022 there were seven lost-time accidents39, of which six were categorised as minor accidents (the main causes being falls, blows and mechanical hazards). One was a major accident, as it led to the death of a contractor at the Cartagena regasification plant. Thus, in 2022 the death rate for employees and contractors per million hours worked was 0.00 and 0.44, respectively (in 2021, 0.00 and 0.34).

Enagás has a procedure of lessons learned where the method of dissemination is established that uses a cascade approach so that it reaches all personnel at the company.

In 2022, the number of hours worked was 2,203,622 hours for own workforce and 2,255,910 hours for contractors (in 2021, 2,198,889 and 2,936,596, respectively).

As regards reported workplace injuries, the rate per million hours worked in 2022 is 4.54 for own workforce and 5.76 for contractors (in 2021, 8.19 and 4.77, respectively)40. In addition, the injury rate for occupational accidents with major consequences (not including fatalities) is zero for both own workforce and contractors.

Lost time injury severity rate [GRI 403-9]

Number of days lost due to accidents per thousand hours worked. (Number of working days lost x 103 / number of hours worked).

* The lost time injury severity rate was 0.02 for males and 0.00 for females in 2022, 0.09 and 0.01 respectively in 2021, and 0.07 and 0.00 respectively in 2020.

Enagás' accident rates are below the energy sector average

³⁹ There were six lost-time accidents in 2021 and fourteen lost-time accidents in 2020. In both years, all accidents were categorised as minor accidents, except for one accident in 2021 that resulted in the death of a contractor.

⁴⁰ In 2022, there were 10 recordable occupational injuries for own staff and 13 for contractor staff. In 2021, there were 18 recordable occupational injuries for own workforce and 14 for contractors.

³⁷ From 2022, in order to improve the comparability of data, Enagás will align its accident recording criteria with those of the Occupational Safety and Health Administration (OSHA), considering the concept of activityrelatedness as a determining factor in its recordability.

³⁸ In 2021, there were seven accidents (six in men and one in women), and in 2020, there were eight accidents (all of them in men). In both years, all accidents were categorised as minor accidents.

Lost day rate [GRI 403-9]

Total cases with lost days (own workforce) / Total hours worked per 200,000

Absenteeism rate by age and gender [GRI 403-9]

Absenteeism hours x 100 / Theoretical hours (collective workforce x 1,674 hours)

The increase in the absenteeism rate in the last year is mainly due to long-term sick leave among men and women over 55 years of age.

Occupational illnesses [GRI 403-10]

Through its evaluation systems for health and safety-related risks, Enagás has not identified workers at risk of work-related diseases. Enagás has therefore not identified any cases of occupational illnesses either for its own workforce or for subcontractors in the last three years.

Risk assessments and incident handling

[GRI 403-2, GRI 403-9]

Within its Health and Safety Management System, Enagás has a procedure for the identification of occupational hazards and subsequent risk assessment. Additionally, the following procedures are available:

• An internal procedure for occupational risk assessment using a method based on the Simplified Accident Risk Assessment System from the National Occupational Safety and Hygiene Institute, which assesses risks associated with both positions and the workplace. This methodology is used for both routine and non-routine work. In the latter case, the methodology is associated with a special operational instruction that makes it possible to quantify the magnitude of the existing risks and to define their correction priority.
• Procedures for the assessment of industrial risks based on different methodologies, such as HAZOP (Hazard and Operability Study), a risk and operability assessment technique that permits the identification of potential and operational risks produced by system deviations from design conditions; SIL (Safety Integrity Level), a technique for assessing safety levels by assigning the required safety integrity level to each instrumented safety function and verifying that it meets the safety requirements of that level; 'What If', a technique for easily identifying potential hazards, assessing the significance of hazards and the adequacy of existing safeguards; risk analysis methodology for facilities under the SEVESO Directive, a methodology for assessing explosion risk which enables the assessment of both the existence and likelihood of the formation of an explosive atmosphere and the existence and likelihood of activation for all possible sources of ignition.

For routine work, in addition to the general risk assessment, specific risk assessments are available for newly implemented maintenance ranges.

• Safety inspections (planned observations and safety visits) and work permits are other procedures that make up the Enagás management system, in which hazards are identified and risks evaluated.

These risk assessments are reviewed when there is a change that requires it or every five years, according to the associated procedures. These assessments are carried out by competent technicians according to national regulations, and the process is verified through internal and external health and safety audits.

The most representative risks of our activity are those related to work in classified areas (areas where there is a potential for explosion and/or fire due to the presence of gases, vapours or dusts in the atmosphere) and those associated with driving.

Following any risk assessment, corrective actions are established to mitigate the relevant identified risks, and the effectiveness of the action is subsequently evaluated. These results are reviewed by management and may lead to improvements in the management system.

In addition, during 2022, jobs and locations have remained subject to COVID-19 risk analyses, as indicated by the relevant procedure from the Spanish Ministry of Health, as well as periodic self-monitoring checks to monitor the measures implemented.

Enagás has an internal procedure for reporting risks or anomalies that any worker may detect during the course of their activity. There are various channels for establishing these communications, such as Health and Safety Committees and meetings, workers' representatives, an electronic mailbox available to all employees, and coordination meetings with contractors, through the prevention service or those directly responsible, and a specific mailbox enabled on the SACE platform for contractors and suppliers. Along these lines, continuous sensitivity-raising and awareness-raising campaigns are carried out with the aim of promoting a culture of risk observation and hazard warnings where necessary.

If a situation involving an imminent, major risk is identified, professionals are obligated to stop working, remain in a safe location and notify their direct supervisor of the situation. In addition, Enagás has a procedure for safety visits and observations carried out by internal professionals, through which hazards and situations that could cause harm can be reported.

Enagás has a procedure for action, notification, investigation and statistical analysis of all incidents.

If the following circumstances arise, a specialised investigation using a cause analysis methodology is carried out, which generates a specific register:

• Incidents with a risk score above a specific level, established according to the method included in the procedure.
• By request of the Intercentre Health and Safety Committee and/or the Health and Safety Committee of the facility, the chain of command or the Prevention Service.
• Major or fatal accidents.
• Major accidents according to RD 840/2015.

Following the investigation, a report is produced including the causes of the incident, the potential risk assessment, the corrective actions identified, the persons responsible for carrying out and monitoring the corrective measures (including those that affect the risk assessment review or changes to the management system), as well as resources and timelines, following the procedure for managing corrective actions.

The criteria used for recording and consolidating reported accident data is based on the OSHA standard.

In 2022, the evaluation of psychosocial risks at the company was finalised, with the most unfavourable areas being the pace of work and role clarity; the most favourable areas were recognition and vertical trust. Also during this year, different corrective actions were identified and began to be implemented in order to manage the areas with the greatest room for improvement identified in this evaluation. These measures include actions aimed at stress management and stress reduction.

See the Health and Safety, Environment and Quality Policy, the General Policy on the Integrated Security of Strategic Infrastructures and the Prevention of Major Accidents Policy on the corporate website

[GRI 403-2, GRI 403-9]

Resilience: crisis management, business continuity and emergencies

Enagás is moving towards a resilient management model, promoting improvements in different areas such as crisis management, business continuity management and accident and emergency management. This model makes it possible to increase the company's capacity to adapt to a changing environment, reducing the time required to act and recover from the possible appearance of a disruptive situation.

Enagás periodically updates its Crisis Management Manual, adapting it to new risks, policies and emerging businesses, establishing various action committees to control incidents depending on the degree of severity and consequences of each scenario. As part of its Global Security Plan, the company organises annual crisis management drills, which enable it to train its professionals at both the technical and highest executive level. Likewise, to facilitate its response capacity, Enagás has maps of both corporate and local stakeholders so that, in the event of a hypothetical crisis situation, both the key people and the communication channels are identified, enabling efficient management.

During the year 2022, the focus has been placed on business continuity, establishing different actions within the company's Transformation Plan that will enable it to achieve improvements in this area.

Enagás also periodically reviews its emergency and self-protection plans and establishes emergency collaboration agreements with the authorities in each Autonomous Community through the signing of agreements in order to achieve a rapid, effective response in the event of a possible crisis situation.

Enagás is moving towards a resilient management model, promoting improvements in different areas such as crisis management, business continuity management and accident and emergency management

Information security

Enagás has a Cybersecurity Policy approved by the Board of Directors and targeted at efficiently managing the security of information processed by the company's IT systems, as well as the assets involved in these processes. This policy is implemented at the company through internal procedures and controls.

The Enagás information security management model is applicable to cybersecurity, based on international and national regulations and the continued assessment of cyber risk. This provides, through all means within its reach and in proportion to the threats detected, the resources required so that the organisation has an environment that is aligned with business targets and the cybersecurity targets established. The Audit and Compliance Committee of the Board of Directors is responsible for supervising the company's cybersecurity, and

therefore periodically reports to this Committee on the established cyber risk indicators and other relevant matters. [GRI 2-13]

Additionally, as enhanced protection for the critical infrastructures operated by Enagás, a General Policy on the Integrated Security of Strategic Infrastructures has been defined in which the processes of physical and logical security have been combined for compliance with the Laws governing the Protection of Critical Infrastructure (LPIC) and the security of network and information systems (NIS). Also, the requirements of the new EU Directive 2022/2555 on measures for a high common level of cybersecurity across the Union.

Enagás has a cybersecurity management model with segregation of duties between government and operation, as well as a Cybersecurity Master Plan. This Plan has been updated in accordance with the requirements of Royal Decree 43/2021; it has designated a Chief Information Security Officer (CISO) with the relevant administrative body.

In 2022, Enagás approved its 2022-2024 Strategic Cybersecurity Plan

In 2022, Enagás approved its 2022-2024 Strategic Cybersecurity Plan, which establishes the policies to be followed to help ensure a secure, reliable cyberspace, using a 360º approach. For this reason, in 2022, the company carried out different informative and training actions that contributed to greater awareness and involvement among all professionals, aimed at improving employees' detection and reaction skills.

The Enagás 2022-2024 Security Master Plan also facilitates secure teleworking without affecting the company's normal operations, discusses the inertia towards digitalisation and the growing migration to cloud solutions. This Master Plan is based on the results of the risk analysis and focuses on improving the resilience of Enagás' information systems.

Currently, Enagás has renewed the ISO 27001:2013 certification for its logistics and commercial systems, gas pipeline control systems and industrial control systems for each type of infrastructure that it operates.

In 2022, the company made progress in managing cyber risks in the supplier life cycle and in enhancing cybersecurity measures in industrial information systems.

Cybersecurity incidents

Enagás has a Security Operations Centre which serves to detect, analyse, report and resolve actual and potential cybersecurity incidents without interruption, 24/7. As in previous years, Enagás' IT systems were not subjected to any successful attacks in 2022.

See the Cybersecurity Policy on our corporate website

Healthy Company [GRI 403-3, GRI 403-6]

Enagás is certified as a Healthy Company according to the protocol of the World Health Organization. The Integrated Healthy Management System encompasses aspects and information regarding the physical working environment, the psychosocial environment, personal health resources and community participation.

At Enagás, all job-specific risks with health impacts are assessed, and there are associated medical protocols to prevent and/or mitigate these impacts. [GRI 403-7]

In addition, there is an agreement with an external prevention service to provide coverage to the occupational medicine and health monitoring speciality at all centres.

The Enagás head office is staffed by two doctors, two qualified occupational nurses and one administrative assistant. The Gaviota platform also has a qualified occupational nurse and remote assistance from a medical service. Enagás also offers its employees private health insurance at a subsidised rate, and a physiotherapy service is offered for shift workers at regasification plants.

The "Guide Project" campaign aims to help professionals acquire knowledge and good habits for their well-being at work and in their personal lives

In 2022, Enagás carried on the "Guide Project" campaign to guide employees towards a culture of health and safety through the acquisition of knowledge and good habits that enable people to maintain their well-being in the professional and personal spheres. The actions launched within the framework of this project include informative videos on digital switch-off, best practices for day-to-day work in the office, emergency actions and work permit management.

05/2022

The third edition of the Enagás Steppers Challenge, part of the company's 'Hello Health!' project, began last May for four weeks with the aim of overcoming sedentary lifestyles and improving health. This year, the number of participants increased compared to previous years, reaching 264 professionals, who were divided into 44 different teams.

As part of the 'Hello Health!' project, the company has a specific Emotional Well-being programme whose main objective is to provide professionals with tools to improve their emotional management and prevent stress at work. This programme includes a range of actions, such as stress management workshops (involving 80% of the company), a mindfulness programme, a digital well-being programme, emotional management improvement programme, interventions by a specialised psychologist to bring together work teams and awareness of digital switch-off.

Medical service actions [GRI 403-6]

Besides the specific medical check-up for each position, Enagás also carries out voluntary basic analytics, a cholesterol breakdown, prostate cancer check-ups for men over 45 years of age, an electrocardiogram and a colon cancer diagnostic test. Enagás has also implemented a programme to encourage professionals to gather the necessary knowledge to become promoters of their own health.

• 1,139 medical consultations for Enagás personnel (898 related to COVID-19), and ten for external personnel.
• 1,243 health examinations.
• • 1,170 examinations for high blood pressure and cardiovascular risk (including 73 blood tests and 49 blood pressure measurements in the medical service, both at specific times and in follow-up).
• 470 tests of early diagnosis of prostate cancer.
• 292 tests of early diagnosis of colon cancer.
• 2,338 COVID-19 tests for Enagás personnel and 612 tests for external personnel. In addition, 449 follow-ups on cases (possible and confirmed) of COVID-19 among the company's workforce.
• 423 cases of vaccinations against flu, and six against pneumococcus, hepatitis A and B, tetanus and typhoid.

With the aim of promoting a healthy lifestyle among employees, Enagás provides professionals with healthy and natural food at the head office and in infrastructure canteens. It also offers online activities related to health and exercise through virtual classes in yoga, Pilates and mindfulness. Enagás also has a locker room, showers and bicycle parking facilities on its premises41. [GRI 401-2, GRI 403-6]

⁴¹ Activities and services available to all professionals (both full and part-time).

3.4 Natural capital and biodiversity

[GRI 3-3]

Natural capital and biodiversity management is one of the key areas for Enagás, as is reflected in the company's Health and Safety, Environment and Quality Policy. The control and minimisation of our impacts on the environment also produces direct internal benefits by improving the use of resources, ensuring the sustainability of our business and generating confidence in our stakeholders.

The key aspects that we address in our natural capital and biodiversity management model are as follows: an assessment of natural capital and biodiversity's impacts and dependencies, process circularity (circular economy), monitoring and control of environmental issues (atmospheric emissions, spills and waste control, noise control, light pollution, water management, biodiversity) and the implementation of impact prevention and mitigation measures.

Sustainable Management Plan

Main lines in 2022 2023 lines

• Programmes of environmental objectives and targets 2022.
• Plan to minimise waste generation and increase recovery/recycling treatments.
• Expansion of linear infrastructure areas with vegetation control through the use of extensive cattle raising.
• Transparency in risk and water management (CDP Water).

• Water monitoring plan for transport activity.

• Programmes of environmental objectives and targets 2023.

• Automation of waste management to improve the quality of information.
• Transparency in risk and water management (CDP Water).
• Biodiversity and nature reporting aligned with the international framework Taskforce on Nature-related Financial Disclosures (TNFD).
• Assessment of the impact of the use of range livestock for vegetation control in gas pipelines.

100%	90.6%	100%	100%	10%
of activity certified in accordance with ISO 14001	of waste recovered / recycled (AENOR Zero Waste Certification)	of facilities with biodiversity impact assessments (2.1 km2)	spills recovered through corrective actions	reduction in municipal water consumption

Natural capital and biodiversity management model [GRI 3-3]

Natural capital and biodiversity impacts and dependencies

Enagás, in line with Natural Capital Coalition's Natural Capital Protocol, assesses natural capital's dependencies and impacts in order to identify actions that enable us to minimise our environmental impact.

The environmental impacts are shown below, ordered by relevance and their origin, as well as the main actions Enagás carries out to prevent and reduce them.

See the Health and Safety, Environment and Quality Policy and the Corporate Biodiversity Directives on the corporate website.

		Environmental aspects	Impacts	Origin of impacts	Main preventative actions and impact mitigation
Most relevance Gas	emissions	• CO2 emissions • CH4 emissions • NOx, HCFCs, CO, SOx emissions	Reduction or deterioration of the quality of the atmospheric environment	Energy consumption for the operation, construction and maintenance of infrastructures (transmission, storage, regasification)	• Energy efficiency • Emissions offsetting • Preventive maintenance • Emission reduction targets linked to variable remuneration paid to employees
Medium relevance	Waste	• Non-hazardous waste • Hazardous waste • Spillage	Decrease in resources and soil and water quality	Infrastructure maintenance	• Recycling and re-use • Spillage prevention measures • Waste recycling and re-use targets
Least relevance	water in similar conditions)	Seawater withdrawal (returning the	Deterioration in seawater volume and/or quality	Regasification plant operations	Use of cold before seawater is returned to the sea
	Land occupation		Impact on biodiversity	Construction and operation of infrastructures	Restoration and preservation of ecosystems to avoid deforestation
	surface water sources	Consumption of water from the municipal network and ground or	Reduction of natural resources	• Firefighting systems • Irrigation • Sanitation	General plan to reduce the consumption of water in facilities
	Noise pollution		• Noise pollution around the facility • Impact on biodiversity	Infrastructure operation	Silencers, insulation
	Light pollution		• Light pollution around the facility • Impact on biodiversity	Infrastructure operation	Reduction of night-time lighting

With regard to natural capital dependencies, Enagás depends on the ecosystems in which its infrastructures are located, so that alterations to these - such as earth movements, flooding, etc. caused by extreme temperature phenomena - constitute a physical risk.

On an environmental aspect level, energy consumption (natural gas and electricity) is key to carrying out our work and is therefore our main natural capital dependency, alongside the land on which our infrastructures are located. They are also the source of our main environmental impact, greenhouse gas emissions. Within the framework of its ISO 50001certified energy management system, Enagás analyses the most significant energy consumption in terms of facilities and equipment, as well as their dependence on the main variables, enabling us to establish and prioritise the energy efficiency initiatives with the greatest impact (see the ''Climate Action and Energy Efficiency' section).

Construction projects generate the company's main impacts on biodiversity. During these projects, Enagás carries out activities for the protection and conservation of flora and fauna species, in accordance with the impact mitigation hierarchy, aimed at preserving ecosystems and their biodiversity. Such activities start with on -site reconnaissance before any work commences in order to check for the presence or absence of species along the route. After construction work is complete, Enagás restores all the affected areas and reforests the area.

In 2022, a number of construction projects were carried out using the corridors of other existing infrastructures and existing accesses to the work area were also used, thus reducing the damage to soil and waters. These projects restored 100% of the affected land, returning it to its previous state as soon as possible after its alteration. This minimises the risk of erosion and helps re -establish the land's natural watershed, as well as the state of affected habitats and the landscape. In 2022, progress was made in the restoration of 536,619 m 2 and the revegetation of 174,920 m ² of the 1,679,201 m ² disturbed42. In 2023, Enagás will continue to work towards the reclamation of the remaining surface area. [GRI 304 -2, GRI 304 -3]

In 2022, Enagás' infrastructures occupied a surface area of 7.4 km ² of land located in Protected Natural Spaces: Natura 2000 Network (LIC/ZEPA), Ramsar wetlands and Biosphere Reserve, representing 16.1% of the total area occupied by the company's facilities. Of the facilities located within critical biodiversity protection areas, the Gaviota and Serrablo underground storage facilities stand out, both of which have a specific biodiversity management plan covering the entire surface area of both facilities (0.16 km 2). [GRI 304 -1]

Enagás conducts biodiversity impact assessments at all of its aboveground facilities (57 operational sites, which occupy a surface area of 2.1 km 2), as well as at construction projects carried out at the facilities and in pipeline areas. During the last five years, this entire area was assessed regarding these concerns (facilities and construction projects).

Risks arising from nature and its biodiversity

From these impacts and dependencies, Enagás, in an integrated manner with the company's materiality analysis and risk assessment processes, identifies and assesses the risk level of each of the risks associated with nature and biodiversity with a scope based on the location of its infrastructure (for more information on ESG risks and their integration in the company's global risk model, see the 'Risk management' chapter). Thus, the physical risks identified are associated with dependence on ecosystems; the regulatory and reputational risks identified are associated with impacts on ecosystems, and some of them are associated with specific environmental aspects such as greenhouse gas emissions or protected species, as shown in the table below.

The scope of this analysis is limited to areas where our own operations are conducted, as well as adjacent areas. Enagás has based this analysis on the TNFD (Taskforce on Nature related Financial Disclosures) framework.

⁴² In 2021, progress was made towards restoring 801,539 m ² of the 1,479,980 m ² disturbed.

Risks arising from nature and its biodiversity

Type of risk			Level of	Main mitigating
	Type of risk Enagás Risk Taxonomy	Risks	risk	actions
Physical risks	Operational and technological	Incidents affecting infrastructures, equipment and systems due to operational failures related to natural capital	Significant	• Forecast contingencies
Regulatory risks	Strategic and business	Failure to meet decarbonisation targets	Tolerable	associated with infrastructure development projects.
		Environmental impact associated with the development of renewable gas projects	Tolerable	• Monitoring of infrastructure development projects to identify potential cost overruns, detours or contingencies.
		Delays or failure to obtain authorisations, licences or permits due to negative environmental impacts	Acceptable	• Previous experience in resolving this type of contingency. • Enagás' Health and
		Cost overruns, delays or unavailability due to preservation of protected species or biodiversity	Acceptable	Safety, Environment and Quality Policy, the principles of which are embodied in the Enagás Environmental Management System,
	Compliance and model	Non-compliance with the company's internal policies, principles, guidelines and procedures related to climate change and natural capital	Tolerable	certified in accordance with ISO 14001. • Environmental Impact Assessment (EIA) according to the typology and applicable regulations (subject to public record with
		Regulatory and legal non compliance (environmental regulation), including liability for contractor non compliance	Tolerable	stakeholder consultation processes). • Carrying out actions aimed at avoiding, minimising, restoring and rehabilitating, compensating for
	Criminal liability	Criminal liability for offences committed by employees or managers against natural resources and the environment	Tolerable	environmental impacts. • Sustainable Management Model, Sustainable Management Plan with lines of action for Natural Capital and Biodiversity
Reputational risks	Reputational	Negative stakeholder perception of the natural capital and biodiversity management	Acceptable	Management.

In addition, Enagás carries out assessments of environmental risks associated with accident scenarios.

As a result of the environmental risk assessments associated with accidental scenarios and their economic quantification (Law 26/2007), Enagás has provided a financial guarantee for the El Musel plant (hypothetical scenario of oil spillage into surface waters) and the underground storage facilities at Serrablo and Yela (the main hypothetical risk scenario is fire affecting wild species and habitats).

Enagás has an environmental liability policy that covers the costs of preventing and remedying any damage to the environment inside or outside the company's facilities, with an annual aggregate liability limit of 20 million euros per claim. It also has an industrial liability policy that covers compensation payments to third parties arising from sudden, accidental and unforeseen pollution or contamination with a limit of 300 million euros per claim. [GRI 3-3]

Environmental management

Enagás undertakes its environmental commitments (as outlined in the Health and Safety, Environment and Quality Policy) via its environmental management system. 100% of Enagás activity is ISO 14001 certified.

Furthermore, the Serrablo and Yela storage facilities and the Huelva and Barcelona regasification plants are EMAS certified.

In line with the ISO 14001 standard, Enagás analyses environmental impacts through assessments of environmental aspects for construction, operation and maintenance activities. Environmental monitoring is carried out through audits, environmental surveillance programmes, assessments of legal compliance at all facilities and monitoring of environmental indicators and improvement plans.

What is more, for infrastructure construction projects, and based on their type and on applicable regulations, environmental impact studies are carried out which include both the impacts themselves and the measures taken to mitigate them. All of this involves establishing consultation processes with stakeholders (see the 'Local communities' section).

All of this enables us to identify the natural capital assets in which we have the greatest impact at facility level and to therefore prioritise environmental actions based on them.

Natural capital management

Enagás has conducted an assessment of natural capital based on an analysis of environmental materiality at infrastructure level. In certain cases, a more detailed assessment is conducted to analyse the ecosystem services of the environment. This is the case of the Landscape Integration Study that was carried out prior to the construction of the Euskadour Compressor Station and which resulted in the identification of revegetation and recovery measures for soils, vegetation and water courses, with more than 900 species planted. [GRI 3-3]

Natural capital valuation study at the Euskadour Compressor Station [GRI 304-2]

Enagás has carried out a study to value and monetise environmental impacts at the facility. The project consisted of the following activities and conclusions:

• Identification of the ecosystem services present in the environment and their indicators: mainly regulating services and, to a lesser extent, supply and cultural services.
• Quantification of the variation of these services at three points in time: during construction, after the implementation of recovery and compensation measures, and after the permit period (25 years). It was found that the impact of construction on the ecosystem services provided by the environment was low thanks to the design and construction criteria used (as established in the Enagás Corporate Biodiversity Directives). In addition, measures implemented after construction and in the operating phase have resulted in a significant impact reduction, 64%, in regulating services, a percentage that will increase to 70% by the end of the period due to the effect of the measures.
• Monetisation of residual debt, with a result of 1,457.55 euros and 1,234.38 euros at the beginning and end of the concession period, respectively.
• Proposed compensation actions to neutralise this debt, which have been included in the company's biodiversity plan.

Biodiversity targets and strategy

[GRI 3-3, GRI 304-2]

Nature and biodiversity targets

No net loss of biodiversity for energy infrastructure construction and

2040 operation projects No net deforestation

2050 Positive impact on nature

Strategic drivers for biodiversity

Valuation and assessment of ecosystems and environmental matters that allow us to set out and prioritise our actions.

Adopting nature-based solutions to preserve, restore and manage ecosystems and species, contributing to climate change mitigation, resilience and adaptation with benefits for nature.

Collaboration with organisations, associations and companies to create shared value and maximise the impact of our actions.

Raise awareness to encourage action both individually and collectively, helping to bring other companies and entities on board.

Enagás' biodiversity strategy establishes the objective of no net loss of biodiversity by 2040 and net positive impact on nature by 2050

Collaborative projects and nature-based solutions

Since 2016, Enagás has been working on collaborative projects with different stakeholders (environmental companies, other companies, Public Administrations and farmers) to carry out vegetation control through the pasturing of range livestock (horses) along gas pipelines. [GRI 304-3]

The results obtained over the years have demonstrated the effectiveness and benefits of the use of livestock, for example in the growth of plant cover resulting from the animals' activity.

This is the case for gas pipeline sections located in the province of Huesca, attached to the Caspe Transmission Centre and the Sabiñánigo Transmission Centre, and the sections located in the Alto Bernesga Biosphere Reserve (León). In these sections, regular grazing is used as the most sustainable solution for vegetation control, due to its high positive impact on the environment and the community:

• Fertilisation and soil disturbance by livestock has a favourable effect on flora and fauna, increasing biodiversity. For this reason, the International Union for Conservation of Nature (IUCN) is assessing its classification as a nature-based solution.
• It provides an extra income for farmers and provides them with areas to graze their livestock, and clearing efficiency is improved.

During 2023, Enagás will evaluate and assess the impact on natural capital of these actions.

2022

Enagás signed a collaboration agreement with the environmental company Agrovidar and Red Eléctrica to replace the usual pruning and felling methods for biomass control with the use of extensive livestock pasturing. Two female farmers and their herds of cattle and horses will maintain 17 hectares of the Alto Bernesga biosphere reserve through which a Red Eléctrica and an Enagás line run.

Regular grazing was shown to be the most sustainable alternative to regular logging and pruning because of its high positive impact on the environment and the community. The project is open to other companies, administrations, agricultural firms and agricultural schools for replication in other natural areas affected by infrastructure.

Circular Economy [GRI 306-2]

At Enagás, we have signed the 'Circular Economy Pact', committing ourselves to promoting the transition towards a circular economy. To this end, we are working along the following lines:

Actions aimed at process circularity: [GRI 306-2]

Energy use and reducing the carbon footprint of our own and	• Enagás' Energy Efficiency and Emissions Reduction Plan, which has enabled us to reduce our carbon footprint by 32% compared to 2014 (see the 'Climate action and energy efficiency' section).
third-party production processes	• Electricity generation projects for our own and third-party consumption, using renewable energies, cleaner technologies and more efficient processes, through which we generated 14.1% of the electricity consumed in 2022 (see the 'Climate Action and energy efficiency' section)
	• A project to make use of the residual cold produced by liquefied natural gas (LNG), making it possible for the residual cold produced in the regasification process of the plants to be used in third-party air conditioning installations or industrial processes, producing energy savings in energy costs and a reduction in the carbon footprint.
Use of renewable energy	• Integration of renewable gases into the Spanish and European Gas Systems through infrastructures, the promotion of a future hydrogen network in Europe and the creation of a renewable gas market (see the 'Decarbonisation and carbon neutrality' chapter).
	• Enagás, through its subsidiary Enagás Renovable, has a portfolio of some 25 renewable hydrogen development projects and 21 biomethane development projects distributed throughout Spain, in collaboration with other partners. (see the 'Decarbonisation and carbon neutrality' chapter).
	• 100% of electricity consumption from guaranteed renewable energy beginning in 2021 (see the 'Climate action and energy efficiency' section)
Life cycle optimisation for products and facilities. Recovery and extension of the useful life	• Reclamation plant for water with methanol at the Serrablo underground storage facility; depending on the amount of methanol present and under certain operating conditions, this will allow us to recover up to 98% of the water containing methanol, thus avoiding the generation of a substantial volume of hazardous waste.
of auxiliary substances and	• Extension of the useful life of oils and lubricants used in the equipment of its facilities by cleaning and filtering these products.
incorporation of eco-design principles	• Recycling of triethylene glycol (TEG) used in the gas drying process at underground storage facilities by subjecting it to a distillation process that optimises the life cycle of this product.
	• Incorporation of eco-design criteria in construction projects.
	• Use of the gas pipeline network route to install fibre optics.
Water saving and efficiency	• Rainwater capture systems in facilities used for fire suppression and irrigation.
	• Replacement of lawns with native vegetation at facilities for more responsible water use, which will allow us to reduce water consumption by up to 80% at two of the facilities with the highest consumption.
Ecological remediation and ecosystem restoration	• Biodiversity Strategy: adopt nature-based solutions to preserve, restore and manage ecosystems and species, contributing to climate change mitigation, resilience and adaptation with benefits for nature.
	• Reclamation and revegetation at 100% of infrastructure development projects with impacts on biodiversity.
Waste recovery and recycling	• Waste recovery and recycling treatments required of waste managers, enabling us to recover 90.6% of waste in 2022.
Product reuse	• Signing of a collaboration agreement with Oroel to research the development of new personal protective clothing from material already in use in order to give them a second useful life.
	• Donation of 32 unused laptops and mobile devices for later reuse in 2022.
Raising awareness on the	• Introduction of the concept of circular economy in environmental training courses.
importance of moving towards a	• Awareness-raising campaigns for contractors and Enagás professionals about separating and managing waste.
circular economy

Consumption of auxiliary materials

Enagás does not consume raw materials in its production process; only ancillary materials are used. Enagás is committed to promoting the circular economy through the efficient use of these materials, reducing consumption, pollution, waste generation and its impact on the environment while encouraging innovation.

Consumption of main auxiliary materials

Auxiliary material	2020	2021	2022
Tetrahydrothiophene (THT) (kg)	432,700	432,202	440,839
Sodium hypochlorite (kg)	646,921	541,327	523,537
Chlorine dioxide (kg)	43,503	26,940	45,695
Methanol (litres)	417,368	589,247	265,030
Triethylene glycol (TEG) (litres)	41,084	9,369	2,050

As can be seen, the consumption of tetrahydrothiophene (THT) used in the gas odorisation process increased in 2022 (by 2% compared to 2021) due to the increase in activity. The sum of the consumption of chlorine dioxide and sodium hypochlorite, substances used as biocides in regasification plants, did not change significantly compared to the previous year.

Waste generation and management [GRI 3-3, GRI 306-1]

The waste generated by Enagás is mostly associated with the maintenance of facilities and equipment, and is mainly liquid waste.

Enagás has implemented a system of segregation, management, storage and delivery to authorised managers of hazardous and non-hazardous waste, who manage the waste outside the company's facilities.

In 2022, Enagás obtained the Zero Waste certification from AENOR43, which recognises the company's progress in maximising the volume of waste recycled or recovered, as well as minimising the waste generated. Therefore, in its various contracts with waste managers, the company has set out the treatments to be applied to each waste product in line with applicable legislation and its commitments, which include the target of treating (recycling/recovering) a percentage equal to or greater than 90% of all hazardous and nonhazardous waste. In addition, Enagás has a plan with actions aimed at increasing the percentage of waste recovery at infrastructure facilities and minimising waste generation. [GRI 306-2, GRI 306-4, GRI 306-5]

Enagás has recycled/recovered 90.6% of all waste generated

Waste generated and managed by type of waste (tonnes)

[GRI 306-3, GRI 306-4, GRI 306-5]

90.6% of the waste generated was recycled/recovered, reaching 94.8% for hazardous waste. Waste that has been disposed of is of different types, many of which are difficult to recover (waste with THT and contaminated soils). Enagás continues to work with waste managers to increase this percentage as much as possible.

In 2022, there was a significant reduction in hazardous waste generated linked to the decrease in methanol water waste (an 80% reduction compared to 2021). The generation of this waste is directly related to the level of extraction activity of the underground storage facilities in accordance with the requirements of the Technical System Manager. In 2022, gas extraction at these storage facilities was reduced by 69% compared to the previous year.

On the other hand, the volume of non-hazardous waste generated increased by 19% compared to the previous year, mainly due to the increase in the generation of debris from maintenance works, the generation of sludge from catchment pools associated with pool cleaning and the generation of wood waste from the supply of industrial equipment. The main non-hazardous waste was household waste, of which more than 98% was recycled/recovered in 2022, and septic tank sludge (non-industrial liquid waste), 100% of which was recycled/recovered.

⁴³ Waste management certificate 2021. The Barcelona plant is outside the scope of this certification.

Type of

Type of waste	Waste destination		2020	2021	2022
Hazardous	Recovery / recycling	Preparation for re use	0.00	0.42	0.09
		Recycling	2,128.23	3,855.95	893.57
		Other recovery operations	7.52	32.61	33.32
		Total recovery / recycling		2,135.75 3,888.98	926.98
		Incineration (with energy recovery)	0.00	0.00	0.00
		Incineration (without energy recovery)	10.25	0.80	0.49
	Disposal	Transfer to a landfill	7.42	6.61	4.91
		Other disposal operations	92.75	54.72	45.73
		Total elimination	110.42	62.13	51.13
	Total waste			2,246.17 3,951.11	978.11

Waste generated and managed by type of waste and by waste destination (tonnes) [GRI 306-3, GRI 306-4, GRI 306-5]

Waste destination 2020 2021 2022

waste
		Preparation for re use	0.00	0.00	0.00
Non hazardous	Recovery /	Recycling	972.98	1,068.10	1,285.05
	recycling	Other recovery operations	171.35	52.41	14.39
		Total recovery / 1,144.33 1,120.51 1,299.44 recycling
		Incineration (with energy recovery)	0.00	0.00	0.00
		Incineration (without energy recovery)	0.12	0.00
	Disposal	Transfer to a landfill	48.13	25.07	28.53
		Other disposal operations	177.52	98.27	151.87
		Total elimination	225.77	123.34	180.40
	Total waste			1,370.10 1,243.85 1,479.84

Solid waste generated and managed by treatment (tonnes) (1)

[GRI 306-3, GRI 306-4, GRI 306-5]

Operation/Treatment		2020	2021	2022
Recovery / recycling (2)		525.41	542.37	722.30
Disposal	Incineration (with energy recovery)	0 0		0
	Incineration (without energy recovery)	0.98	0.80	0.45
	Transfer to a landfill	55.39	30.03	33.32
	Other disposal operations	5.84	5.37	7.63
	Total elimination	62.21	36.20	41.40
Total solid waste		587.62	578.57	763.70

(1) Excludes contaminated soils produced by accidents and soaked sepiolite (clean-up material for small spills).

(2) Includes energy recovery, capture, recycling and other recovery treatments.

Spillage Control [GRI 306-3]

Enagás has preventive measures in place to avoid spills, such as the placement of containment buckets and trays. The following accidental spills occurred in 202244.

Main spills in 2022

Spilled material	Spill volume (litres)	Location of the spill
Fuel	60.7	Spills at the Cartagena Regasification Plant (50 litres of diesel), Yela Underground Storage Facility (8 litres of diesel) and Gaviota Underground Storage Facility (0.2 litres of diesel and 2.5 litres of liquid containing hydrocarbons).
Chemicals	2	2-litre coolant spill at the Cartagena Regasification Plant
Other (oil)	751	Oil spills at the Huelva Regasification Plant (4 spills of 8 litres in total), the Yela Underground Storage (1 spill of 3 litres), the Paterna Compressor Station (2 spills of 40 litres in total) and the Almendralejo Compressor Station (2 spills of 700 litres in total).

In case of a spill, Enagás carries out corrective actions that include, among others, damage assessment, land decontamination and replenishment if necessary, removal and treatment by the waste management company and preparation of the incident report. In 2022, 100% was recovered thanks to these corrective measures, and there was therefore no environmental impact.

Water management [GRI 3-3, GRI 303-1]

At Enagás, we do not consume water in our production processes. The company has therefore not stated significant aspects linked to water shortages in the yearly assessments that are conducted in line with the environmental management model.

The main withdrawal of water that Enagás carries out is that of seawater for use in floodwater vaporisers or at regasification plants. The volume of water taken is directly proportional to the quantity of gas regasified. This seawater accounts for 99.9% of the total water withdrawn and is returned in such a way that its nature is maintained (the decrease in temperature is minimal and does not affect the marine ecosystem). [GRI 303-3, GRI 303-4]

⁴⁴ The following accidental spills occurred in 2021: four fuel spills (225.10 litres in total), two chemical spills (23 litres in total) and four oil spills (262.5 litres in total).

Seawater withdrawn and returned to its source (hm3) [GRI 303-3]

* Legal extraction limit established for each Regasification Plant

In 2022, seawater withdrawn at regasification plants was more than 40% higher than in the previous year, in line with the higher level of regasification activity at these facilities, which was 49% higher than in 2021.

Water withdrawn from other sources (m3) [GRI 303-3]

(1) In 2022, the use of water from the municipal network and surface water from previous years was recalculated due to the separation of flows of water supplying the plant and the Gaviota underground storage platform (until this year, it was all considered water form the municipal network).

The company has various measures aimed at reducing water consumption such as better techniques for irrigation and consumption of grey water. In 2022 we have managed to reduce the amount of water drawn from the municipal network by 10%, surpassing our own target (5%). Enagás has been implementing measures to reduce water consumption for years, as well as carrying out regular campaigns to raise awareness and disseminate information about water conservation (of particular note is the quarterly consumption control carried out at the Transmission Centres, as well as the measures to reduce consumption in the event of a drought at the Barcelona Plant).

Enagás also draws water from other sources, mainly for sanitary use, irrigation and firefighting equipment. Of the 68,678 m3 withdrawn in 2022 for these uses, 16,602 m3 have been discharged, meaning that water consumption has totalled 53,426 m3 (an amount that includes the 1,350 m3 of seawater pumped at the Barcelona Plant for desalination)45. This amount of water consumed represents only 0.02% of the total amount of water withdrawn. [GRI 303-2, GRI 303-4, GRI 303-5]

The company therefore has various measures aimed at reducing water consumption such as better techniques for irrigation and consumption of grey water. Enagás has been implementing measures to reduce water consumption for years, as well as carrying out regular campaigns to publicise and raise awareness of this issue. [GRI 3-3, GRI 303-1]

In 2022, Enagás reduced its consumption of municipal water by 10%

⁴⁵ In 2021, of the 79,581 m3 withdrawn for these uses, 14,365 m3 were discharged, so water consumption was 69,770 m3 (including the 4,554 m3 of seawater used at the Barcelona Plant for desalination).

Air pollution [GRI 3-3, GRI 305-7]

The main non-greenhouse gases emitted at our facilities are CO, SOx, NOx, PM10 particles and Non-Methane Volatile Organic Compounds (NMVOC). These emissions are produced by the consumption of natural gas and diesel by various pieces of equipment and, therefore, are directly related to CO2 emissions. Energy efficiency measures and CO2 emission reduction targets (see the 'Climate action and energy efficiency' section) are directly related to the reduction of these atmospheric emissions.

Non-GHG emissions (tonnes) (1)

(1) Enagás does not emit the following compounds: Persistent Organic Pollutants (POPs) and Hazardous Air Pollutants (HAPs). The source of the emission factors used for the calculation of these emissions is the EMEP/EEA air pollutant emission inventory guidebook 2019, by the European Environment Agency.

In 2022, the increase in non-greenhouse gas emissions compared to the previous year was directly related to the increase in natural gas consumption due to significant changes in the operating context of the Spanish Gas System (see the 'Climate action and energy efficiency' section).

However, despite this context, Enagás has set a target of reducing its NOx emissions by 5% by 2023 compared to 2022, which it will achieve mainly thanks to the electrification of turbocompressors.

Enagás carries out regulatory and voluntary atmospheric checks (self-checks) at all its combustion sites. The control actions are as follows:

• Periodic regulatory inspections (conducted by an authorised inspection organisation (AIO)).
• Annual TESTO check (carried out with their own resources (Analysing team and Enagás employees)).

Both the regulatory inspections and the internal TESTO checks are planned annually for every facility as part of the 'Atmospheric Monitoring Programme'.

Noise at Enagás' facilities is produced by the operation of regulators, turbines, vaporisers and pumps, among others. All facilities carry out regular environmental noise measurements around their perimeter to ensure that noise levels remain within the limits established in applicable legislation. In those cases where deviations are found, corrective actions are implemented (acoustic screens, silencers, soundproofing, etc.).

With regard to light pollution, Enagás has also reduced night-time lighting at its facilities by switching off the lighting at night, with the exception of regasification plants, where minimum perimeter lighting is maintained.

3.5 Good Corporate Governance

Good Corporate Governance is a primary concern for the company, as is reflected in the Enagás Sustainability and Good Governance Policy. This policy confirms that a good governance model allows us to create value in the short, medium and long-term for shareholders, customers, suppliers and other stakeholders. It also strengthens the company's control environment, reputation and credibility for third parties.

The key areas on which our governance model is structured are the company's strategy and objectives (see the 'Our commitment to the energy transition' chapter), the structure and functioning of our governing bodies (independence, diversity, etc.), performance and the system of incentives for decision-making.

Sustainable Management Plan

Main lines in 2022 2023 lines

• 2022 Board renewals, considering Good Governance recommendations regarding the number of Board members and gender diversity on the Board.
• Re-election of the Chairman, Mr Antonio Llardén Carratalá, who will cease to carry out his executive duties and will become another External Director.
• Ratification and appointment of Mr Arturo Gonzalo Aizpiri as Chief Executive Officer of the Company.
• Division of the Sustainability, Appointments and Remuneration Committee into two separate committees: the Sustainability and Appointments Committee and the Remuneration Committee.

• Certifying, for the third consecutive year, the General Shareholders' Meeting of 2022 as a sustainable event in accordance with the ISO 20121 standard.

• Planning for the 2023 Board renewals, considering Good Governance recommendations regarding the number of Board members and gender diversity on the Board.

• Maintaining the Board's level of independence.
• Renewing the certification of the 2023 General Shareholders' Meeting as a sustainable event in accordance with ISO 20121.

40%	33.3%	15	66.7%	46%
Women on the Board of Directors	Women in the Executive Committee	Members of the Board of Directors	Independent Directors	Quorum at 2022 GSM
[GRI 405-1]	[GRI 405-1]

Board of Directors and Committees [GRI 2-9, GRI 2-11]

Mr Antonio Llardén Carratalá has been Executive Chairman of Enagás since 2007. The 2022 General Shareholders' Meeting re-elected him as Chairman, relieving him of his executive duties and giving him the status of another External Director, in line with international corporate governance best practices. This coincided with the ratification and appointment of Mr Arturo Gonzalo Aizpiri as Chief Executive Officer of the Company.

In line with industry best practices, the Sustainability, Appointments and Remuneration Committee has been split into two separate committees in 2022: the Sustainability and Appointments Committee and the Remuneration Committee. This improves the level of independence of the previous committee.

Name of the Director	Position on the Board of Directors	Type of Director	Position on the Audit and Compliance Committee	Position on the Sustainability and Appointments	Position on the Remuneration Committee
Antonio Llardén Carratalá	Chairman	Other External		Committee
Arturo Gonzalo Aizpiri	Chief Executive Officer	Executive
Ana Palacio Vallelersundi	Independent Leading Director Independent			Chairwoman
José Montilla Aguilera	Director	Independent	Chairman
María Teresa Arcos Sánchez	Director	Independent			Chairman
Santiago Ferrer Costa	Director	Proprietary		Member
SEPI - Sociedad Estatal de Participaciones Industriales (represented by Bartolomé Lora Toro)	Director	Proprietary	Member
José Blanco López	Director	Independent		Member
Natalia Fabra Portela	Director	Independent	Member
Cristóbal José Gallego Castillo	Director	Independent		Member
Clara Belén García Fernández Muro	Director	Independent			Member
Manuel Gabriel González Ramos	Director	Independent			Member
David Sandalow	Director	Independent		Member
Patricia Úrbez Sanz	Director	Independent	Member
Ms María Teresa Costa Campi	Director	Other external		Member
Rafael Piqueras Bautista	General Secretary		Secretary	Secretary	Secretary

03/2022

The General Shareholders' Meeting approved the 2021 accounts, the management report and all the items on the Agenda, as well as the re-election of Antonio Llardén as Chairman and the ratification of Arturo Gonzalo as Executive Director. During the event, Enagás highlighted security of supply in Spain and Europe and decarbonisation as strategic priorities.

Enagás' 2022 General Shareholders' Meeting was held in person and online and has been certified as a sustainable event in accordance with the ISO 20121 standard for the third consecutive year.

See the Rules and Regulations of the Organisation and Functioning of the Board of Directors of Enagás and the Regulations of its Committees on the corporate website.

[GRI 2-9, GRI 2-10, GRI 405-1]

The Rules and Regulations of the Organisation and Functioning of the Board of Directors of Enagás includes conditions which must be met by Board members in order for them to be considered independent. An additional target has been defined to have at least half of the Board consisting of independent directors.

Percentage of Board members by age range and gender

	Women	Men	Total
<=35 years	-	-	-
36-55 years	66.7%	22.2%	40%
>55 years	33.3%	77.8%	60%
TOTAL	40%	60%	100%

In 2022, the Enagás Board of Directors has 15 directors, 66.7% of whom are independent. The average age of the directors is 58.5 years old and their average tenure is 4.5 years.

The Board Diversity and Director Selection Policy sets out the principles on which the selection processes for members of the Board of Directors are based:

• Principle of diversity in the composition of the Board.
• The principle of non-discrimination and equal treatment, so that the selection procedures for members of the Board of Directors are not subject to implicit bias which could entail any discrimination of any kind, whether due to race, sex, age, disability, etc.
• Compliance with laws in force and with the Enagás corporate governance system; likewise, with the recommendations and principles of good governance adopted by the Company.

In 2022, and in line with its commitment to promote gender diversity and the recommendations of the National Securities Market Commission (CNMV), Enagás' Board of Directors was 40% women, thus meeting the target of 40% women on the Board by 2024 included in the 2022-2024 Long-Term Incentive Plan.

See the Board Diversity and Director Selection Policy on the corporate website

Enagás' Board of Directors is now 40% women, meeting the target set out in the 2022-2024 Long-Term Incentive Plan

Functioning of the Board

[GRI 2-12, GRI 2-15, GRI 2-18]

Enagás' Sustainability and Good Governance Policy establishes compliance with national and international recommendations and best practices in the area of corporate governance, in aspects such as the training and assessment of Directors, as one of its commitments.

See the Sustainability and Good Governance Policy on the corporate website.

Enagás has established the necessary mechanisms to detect and resolve possible conflicts of interest in which directors and shareholders of the Group, as well as their respective related parties, may find themselves. This is all in accordance with the Conflict of Interest Policy, the provisions of current corporate and regulatory regulations and the Enagás Corporate Governance System, with the ultimate aim of avoiding potential conflicts of interest and ensuring full transparency in this regard. For more details on these mechanisms, see the 'Annual Corporate Governance Report', section D.6.

See the Conflict of Interest Policy on the corporate website.

Every year, an assessment of the Board is performed with the participation of an independent external expert. This assessment is performed objectively and from a bestpractice viewpoint by means of questionnaires completed by all members of the Board. The conclusions of this phase are checked in interviews with the same Directors. The aim is to sustain and bolster the performance of the Board of Directors. For more details on the results of the assessment carried out during 2022, see the 'Annual Corporate Governance Report', sections C.1.17 and C.1.18.

In accordance with the priorities identified by the members of the Board of Directors in the previous year's performance review, the following lines of action were pursued in 2022:

• Increase the frequency and duration of sessions.

• Strengthen oversight of the risk model. This is why risk reporting has evolved, increasing the information in the corporate risk map and integrating ESG risks as a cross-cutting risk.
• Specific monitoring of cybersecurity risk and associated mitigation actions [GRI 2- 17, GRI 2-18]

Knowledge, skills and professional experience of the Board of Directors [GRI 2-9, GRI 2-17]

			Audit and Compliance Committee			Sustainability and Appointments Committee				Remuneration Committee
	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
Senior management	x	x	x	x	x				x		x				x
Industry experience	x	x		x		x		x	x			x	x
International experience	x	x	x	x	x	x	x		x	x	x		x
Audit and finance	x	x		x				x
Risk management		x	x	x	x			x
Strategy		x	x	x	x	x	x	x	x		x	x			x
Institutional experience and public service	x	x	x	x	x		x	x	x		x			x	x
Legal, regulatory and corporate governance				x	x		x							x	x
Technology		x	x	x				x		x		x			x
Innovation		x	x	x				x	x	x
Cybersecurity			x	x											x
People, culture, talent and human rights management	x	x	x	x	x				x
Sustainability, climate change and environment	x	x	x		x	x	x	x	x	x	x	x	x	x

14 meetings of the Board of Directors were held in 2022 with an average attendance of 100%, and the following critical issues were addressed. [GRI 2-16]

Topic	Type	Resolution
Transparency in non-financial information and diversity	Corporate Governance,	Unanimously approved
Annual Corporate Governance Report and Consolidated Management Report (Non-Financial Information Statement)	E i t l d Corporate Governance Unanimously	approved
Evaluation of the Board	Corporate Governance Unanimously	approved
Decarbonisation strategy: update of the decarbonisation pathway to meet Scopes 1 and 2 emission reduction targets	Environmental	Unanimously approved
Positioning in sustainability indices and Sustainable Management Plan	Corporate Governance, Environmental and Social	Unanimously approved
Regulatory aspects with ESG impact	Corporate Governance, Environmental and Social	Unanimously approved

Among the issues addressed in 2022 by the Board of Directors are those related to environmental, social and good governance aspects

Executive Committee [GRI 2-13, GRI 405-1]

Percentage of professionals who are members of the Executive Committee by age range and gender

	Women	Men	Total
<=35 years	0.0%	0.0%	0.0%
36-55 years	100.0%	66.7%	77.8%
>55 years	0.0%	33.3%	22.2%
TOTAL	33.3%	66.7%	100.0%

06/2022

The Enagás Board of Directors has approved a new organisational structure to realise the company's new 2022-2030 Strategic Plan. The new organisation is a response to the goal of focusing on energy transition and security of supply in Spain and Europe. It promotes innovation to aid in the decarbonisation process.

The Enagás Executive Committee, headed by the Chief Executive Officer, is being reduced from 11 to 9 members, 33.3% of whom are women.

Remuneration of the Board of Directors [GRI 2-19, GRI 2-20]

The Enagás Board of Directors is empowered to adopt resolutions on Directors' remuneration. The Remuneration Committee proposes the remuneration criteria, within the limits set forth in the Articles of Association and pursuant to the decisions taken at the General Shareholders' Meeting. The Committee also monitors the transparency of remuneration. Thus, in 2021, the General Shareholders' Meeting approved the new Directors' Remuneration Policy 2022-2024, which is of a continuing nature, maintaining the fundamental premises of the previous ones in terms of independence, stakeholder involvement (the remuneration report is submitted to a consultative vote at the General Shareholders' Meeting) and internal and external advice, and adding technical improvements.

Remuneration of the Board of Directors in 2022 [GRI 2-19, GRI 2-20]

The remuneration of the members of the Board of Directors for their Board membership and those corresponding to the Chairman, the former Chief Executive Officer and the current Chief Executive Officer for the exercise of their executive functions during the 2022 financial year were approved in detail by the General Shareholders' Meeting held on May 27, 2021 as part of the "Directors' Remuneration Policy for the 2022, 2023 and 2024 financial years", approved as Item 10 of the Agenda and modified by the General Shareholders' Meeting held on March 31, 2022, as Item 8 of the Agenda.

The Group has outsourced its pension commitments with respect to its Senior Managers through a mixed group insurance policy for pension commitments, including benefits in the event of survival, death, and employment disability. The Executive Chairman and the former Chief Executive Officer are part of the group covered by this policy and of the total premium paid for this during the year, 345 thousands of euros corresponded to them. The new Chief Executive Officer (Mr Arturo Gonzalo Aizpiri) does not have a pension commitment instrument, as he does not have an employment relationship with the company, but rather a commercial relationship. The new CEO maintains an assimilated individual savings insurance at a cost of 191 thousands of euros.

The members of the Senior Management also form part of the group insured under the mixed group insurance policy for pension commitments. The total premium paid for the same during the financial year amounts to 747 thousands of euros.

The two former Executive Directors (Mr Antonio Llardén Carratalá and Mr Marcelino Oreja Arburúa) were beneficiaries of the 2019-2021 Long-Term Incentive Plan approved by the General Shareholders' Meeting on March 29, 2019 under Item 8 of the Agenda. During 2022, the aforementioned incentive was paid out under the terms established by the General Shareholders' Meeting. As a result of this settlement, a total of 50,122 gross shares were delivered to the two executive directors, which they will not be able to sell within two years.

Members of Senior Management (members of the Management Committee) are equally beneficiaries of the 2019-2021 Long-Term Incentive Plan. In the terms approved at the General Shareholders' Meeting, in the settlement of this incentive in the 2022 financial year, 52,538 gross shares and a cash incentive amount of 335 thousands of euros corresponded to them.

The current Chief Executive Officer is beneficiary of the 2022-2024 Long-Term Incentive Plan approved by the General Shareholders' Meeting on March 31, 2022 as Item 9 of the Agenda. In said meeting, a total of 96,970 rights relating to shares were assigned to him. These rights do not entail the acquisition of shares for the time being, since the termination of the programme and the right to accrue the final incentive, which depends on the degree of

achievement of the programme's objectives, will be generated within thirty days following the approval of the 2024 annual accounts by the General Shareholders' Meeting to be held in 2025.

Members of Senior Management (members of the Executive Committee) are equally beneficiaries of the 2022-2024 Long-Term Incentive Plan. As approved at the General Shareholders' Meeting, the Board has assigned them a total of 145,764 rights relating to shares as well as an incentive in cash amounting to approximately 1,000 thousands of euros. These rights do not entail the acquisition of shares for the time being, since the termination of the programme and the right to accrue the final incentive, which depends on the degree of achievement of the programme's objectives, will be generated within thirty days following the approval of the 2024 annual accounts by the General Shareholders' Meeting to be held in 2025.

The aforementioned remuneration, broken down for each member of the Board of Directors, without considering insurance premiums, is as follows:

Remuneration of the Board of Directors (thousands of euros) [GRI 2-19]

Director	2022 (6)	2021
Mr Antonio Llardén Carratalá (Chairman) (1)	1,594	1,881
Mr Arturo Gonzalo Aizpiri (Chief Executive Officer) (3) (4) (5)	969	0
Sociedad Estatal de Participaciones Industriales (Proprietary Director) (4)	160	160
Mr José Blanco López (Independent Director) (4)	160	160
Ms Ana Palacio Vallelersundi (Independent Leading Director) (4)	190	190
Mr José Montilla Aguilera (Independent Director) (3) (4)	175	166
Mr Cristóbal José Gallego Castillo (Independent Director) (4)	160	160
Ms Eva Patricia Úrbez Sanz (Independent Director) (4)	160	160
Mr Santiago Ferrer i Costa (Proprietary Director) (4)	160	160
Ms Natalia Fabra Portela (Independent Director) (3) (4)	160	85
Ms María Teresa Arcos Sánchez (Independent Director) (3) (4)	170	85
Mr David Sandalow (Independent Director) (3) (4)	114	0
Ms Clara García Fernández-Muro (Independent Director) (3) (4)	113	0
Ms María Teresa Costa Campi (Independent Director) (3) (4)	114	0
Mr Manuel Gabriel González Ramos (Independent Director) (3) (4)	113	0
Mr Ignacio Grangel Vicente (Independent Director) (3) (4)	44	160
Mr Gonzalo Solana González (Independent Director) (3) (4)	44	160
Mr Antonio Hernández Mancha (Independent Director) (3) (4)	44	160
Ms Isabel Tocino Biscarolasaga (Independent Director) (3) (4)	44	168
Mr Marcelino Oreja Arburúa (former Chief Executive Officer) (2) (3)	431	952
Mr Luis García del Río (Independent Director)	0	73
Mr Martí Parellada Sabata (External Director)	0	73
Ms Rosa Rodríguez Díaz (Independent Director)	0	73
Total	5,119	5,026

(1) The remuneration of the Executive Chairman for the exercise of his executive duties during 2022 was that approved in detail by the General Shareholders' Meeting held on May 27, 2021 as part of the "Directors' Remuneration Policy for the 2022, 2023 and 2024 financial years" as approved as Item 10 of the Agenda as amended by the General Shareholders' Meeting held on March 31, 2022 under Item 8 of the Agenda to cover his remuneration as non-executive Chairman as from that date. During 2022, the Chairman, both in his post as Executive Chairman and, starting March 31, 2022, as non-Executive Chairman, received fixed remuneration in the amount of 700 thousands of euros and variable remuneration in the amount of 731 thousands of euros (linked to the 2021 and 2022 Company Targets); he also received 130 thousands of euros for Board membership and other remuneration in kind amounting to 33 thousands of euros (the changes in remuneration in kind with respect to previous years is exclusively a result of measurement

differences without there having been any additional items included in the remuneration). Thus, the combined amounts totalled 1,594 thousands of euros. In addition, he was also the beneficiary of a life insurance policy with a premium of 0 thousands of euros for the year. The Group has outsourced its pension commitments with respect to its senior managers through a mixed group insurance policy for pension commitments, including benefits in the event of survival, death and employment disability. The Executive Chairman is one of the beneficiaries covered by this policy, and of the total premium paid during the year, 321 thousands of euros correspond to the Executive Chairman.

(2) The remuneration for the former Chief Executive Officer in 2022 was approved in detail by the General Shareholders' Meeting on March 31, 2022 as part of the proposal to modify the "Directors' Remuneration Policy for the 2022, 2023 and 2024 financial years". In 2022, he received fixed remuneration in the amount of 73 thousands of euros and variable remuneration in the amount of 335 thousands of euros (linked to the 2021 and 2022 Company Targets); he also received 18 thousands of euros for Board membership and other remuneration in kind amounting to 5 thousands of euros. Thus, the combined amounts totalled 431 thousands of euros. In addition, he was also the beneficiary of a life insurance policy with a premium of 0 thousands of euros for the year. The former Chief Executive Officer is also beneficiary of the mixed group insurance policy for pension commitments, and the share of the premium corresponding to the Chief Executive Officer for this policy amounted to 24 thousands of euros for the year.

(3) On February 21, 2022 the Board of Directors co-opted Mr Arturo Gonzalo Aizpiri as Executive Director to fill the vacancy caused by the resignation of the former Chief Executive Officer, Mr Marcelino Oreja Arburúa, on that date. On March 31, 2022, Mr Antonio Hernández Mancha, Mr Gonzalo Solana González, Mr Ignacio Grangel Vicente and Ms Isabel Tocino Biscarolasaga stepped down from their posts, while Mr David Sandalow, Mr Manuel González Ramos, Ms Clara García Fernández-Muro and Ms María Teresa Costa Campi were appointed as new Directors.

(4) The remuneration for these Directors relating to Board and committee membership was approved in detail by the General Shareholders' Meeting on March 31, 2022 as part of the proposal to modify the "Directors' Remuneration Policy for the 2022, 2023, and 2024 financial years".

(5) The remuneration of the current Chief Executive Officer for the 2022 financial year has been approved in detail by the General Shareholders' Meeting held on May 27, 2021 as part of the "Directors' Remuneration Policy for the 2022, 2023 and 2024 financial years", approved as Item 10 of the Agenda and modified by the General Shareholders' Meeting held on March 31, 2022, as Item 8 of the Agenda. During 2022, the CEO received fixed remuneration in the amount of 804 thousands of euros; he received 112 thousands of euros for Board membership and other remuneration in kind amounting to 53 thousands of euros (the changes in remuneration in kind with respect to previous years are exclusively a result of measurement differences without there having been any additional items included in the remuneration). Thus, the combined amounts totalled 969 thousands of euros. In addition, he was also the beneficiary of a life insurance policy with a premium of 46 thousands of euros for the year. The Chief Executive Officer is a beneficiary of the 2022-2024 Long-Term Incentive Plan approved at the General Shareholders' Meeting held on March 31, 2022. Item 9 of its Agenda states that the meeting assigned him a total of 96,970 performance shares or rights relating to shares. These rights do not entail the acquisition of shares for the time being, since the right to accrue the final incentive, which depends on the degree of achievement of the programme's targets will be generated within thirty (30) days following the approval of the 2024 annual accounts by the General Shareholders' Meeting to be held in 2025. Also, the CEO maintains an individual savings insurance at a cost of 191 thousands of euros.

(6) The remuneration of Directors in 2022, broken down by sex, amounted to 402 thousands of euros for men and 170 thousands of euros for women (calculated as the average remuneration. For comparative purposes, the calculation does not include new Directors or those who resigned from their positions in 2022, since they were not active during the entire fiscal year). The difference in remuneration is due to the fact that the Chairman is a man.

3.6 Ethics and integrity

[GRI 3-3]

Ethics and integrity are of the utmost importance to our stakeholders and also to the company, as reflected in the Code of Ethics and Compliance Policy. Guaranteeing the honest behaviour of our professionals, and of the third parties with whom we form relationships; even when this behaviour is not set out in the legislation, is one of our priorities. This commitment allows us to guarantee appropriate decisions are made, creating trust in our stakeholders and facilitating the sustainability and good governance of the business.

The key aspects of our ethics and integrity model are the policies, standards and procedures applicable at Enagás, with the Group's Code of Ethics being the framework that establishes the principles of action necessary to promote ethics and integrity as well as a culture of compliance at Enagás.

Sustainable Management Plan

Main lines in 2022 2023 lines

• Certification of the Corruption Prevention Programme under Standard ISO 37001: Anti-Bribery Management System.
• Approval and publication of a Corporate Defence.
• Approval and publication of a Conflict of Interest Policy.
• Development of a penalties procedure in relation to third party due diligence (within the framework of the Compliance Management System).
• Update to the Code of Conduct of the GTS (Technical Manager of the System) in line with the recommendations of the Supervisory Report on the implementation of measures for the separation of GTS activities, issued by the National Commission on Markets and Competition.

• Internal review to monitor the correct operation of the Compliance Management System.

• Internal communication campaign to reinforce the Enagás whistleblowing line (Ethics Channel).

• Adaptation of the company's whistleblowing line to the requirements of the new whistleblower protection regulations.
• Awareness-raising for contractors and suppliers on the Code of Ethics.
• Promotion and monitoring of the development of Compliance Programmes in Enagás affiliates.
• Anti-corruption training for the Board of Directors.

3	98%	91%	96%	100%
communications received via the Ethics Channel	of professionals received training on the Code of Ethics	of professionals have undergone training on the Corruption Prevention Programme [GRI 205-2]	of professionals have received training on the Corporate Defence Programme	of communications received have been resolved

Code of Ethics

[GRI 2-23, GRI 2-24, GRI 2-25]

The Enagás Code of Ethics (Enagás Group Code of Ethics and Enagás Gestor Técnico del Sistema (GTS) Code of Conduct) sets out the conduct that is expected from all professionals in the company, irrespective of their responsibilities and their geographical or functional location.

• The Enagás Group's Code of Ethics is structured in accordance with the company's values and includes Enagás' principles in matters related to each of its values.
• The purpose of the Enagás GTS Code of Conduct is to ensure that the duties of the Technical Manager of the System are carried out independently of the rest of the Group's activities.

98% of the workforce has confirmed, by signing, that they have read, are familiar with and understand the contents of the Enagás Group Code of Ethics.

The Enagás Group's Code of Ethics is implemented through policies, guidelines, standards and procedures. As for the corporate policy management model, the Board of Directors is responsible for approving said policies, while the organisational units involved in the different matters are responsible for ensuring the implementation of the various commitments and their integration into internal procedures. [GRI 2-12, GRI 2-13, GRI 2-24]

Enagás has the following procedures in place associated with the Code of Ethics:

• Procedure for the functioning of the Ethical Compliance Committee. The Committee, functionally and directly dependent on the Board of Directors' Audit and Compliance Committee, has competencies relating to the Code of Ethics.
• Procedure for managing the offering and acceptance of gifts, which states that professionals who offer or receive gifts are obligated to report them. This procedure establishes as a general rule that payments in kind - or any other benefit that, due to its value, properties or circumstances, is more than purely symbolic (estimated value in excess of 50 euros) - may not be made, offered or received.
• Procedure for management of consultations and reporting regarding irregularities or breaches of the Code of Ethics in order to encourage compliance with the Code of Ethics and the regulations that govern its implementation. For this purpose, the company enables Enagás employees and the company's suppliers, contractors and those who collaborate with it or act on its behalf, including business partners, to resolve any doubts or to report any irregularities or breaches through one of the following channels or any other means the company may set up in the future (Whistleblowing line), informing the party who made the report of the status of their report at all times. [GRI 2-26, GRI 207- 2].

Electronic mailbox: canal.etico@enagas.es Post addressed to the Chairman of the Ethical Compliance Committee, sent to Paseo de los Olmos 19, 28005 - Madrid, Spain Form available on the corporate Intranet

In addition to the formal channels indicated above, Enagás employees can always:

• Go to their immediate hierarchical superior.
• Contact the person in charge of specific Compliance functions in their area.
• Personally address the Compliance area (compliance@enagas.es).

The company's whistleblowing line (Ethics Channel) management procedure lays out the phases in the management of the reports received:

• Receipt of report: all reports are received by the Secretary and the Chairman of the Ethical Compliance Committee simultaneously.
• Prior analysis of the report and study of the information provided: the Secretary and Chairman of the Ethical Compliance Committee shall assess whether the report is to be accepted or rejected.
• Deliberation on notification and information to the reporter: the Secretary and Chairman of the Ethics Compliance Committee shall respond to the reporter within the legally established time frame on the decision taken on the report.
• Analysis and assessment of the message: carried out by the Ethical Compliance Committee, together with the Enagás managements or bodies that it considers appropriate in each case. It may be supported by third parties.
• Resolution and notification: The Ethical Compliance Committee will take the relevant decisions regarding the notified case. The Secretary and/or chairman of the committee will communicate the conclusions.

Enagás is committed to resolving all notifications received. In 2022, the average time for handling notifications submitted to the whistleblowing line, from the time the reporter sends the report to the time the reporter is notified of the agreed resolution and the conclusions and actions reached, was less than 45 days.

Any non-compliance with the Code and with the regulations that implement it shall be analysed by the Ethical Compliance Committee. When it is found that a person has contravened the Code, the Ethical Compliance Committee, together with the People and Transformation General Management, will propose the corresponding disciplinary measures based on the regulations in force and the applicable labour framework.

Ethics channel contact information [GRI 2-26, GRI S11.15.4]

In 2022, three notifications were received (seven communications in 2021) through the different modalities of the whistleblowing line: [GRI 205-3]

• A report received through the whistleblowing mailbox concerning a case of possible harassment in the workplace, which, after due analysis and the launch of an investigation to gather more information, was shelved at the request of the reporter after some time had elapsed since the report was made. The ongoing investigation had not reached any relevant conclusions as to any possible breach.
• A report made directly to the Compliance department by the Business Development and Affiliates General Management, regarding a breach of the Code of Conduct by one of our affiliates. This was managed by the affiliate itself, having been concluded in accordance with its own whistleblower management procedure, as it is an affiliate without effective control by the Enagás Group, in accordance with the provisions of our Code of Ethics.
• A report received through the whistleblowing mailbox regarding a case of possible discrimination and actions contrary to the principle of equal opportunity, as set out in the company's Code of Ethics. After verifying that the internal rules and procedures were complied with at all times, the proceedings were closed without finding any irregularities.

The commitments to responsible business conduct set out in the Code of Ethics are translated into specific policies and corporate guidelines. These policies, which are approved at the highest Company level, by the Board of Directors, apply to all employees, executives and administrators of all companies that make up the Enagás Group, including those affiliates over which it holds effective control, within the limits set out under applicable regulations. For those affiliates in which the Enagás Group does not hold effective control, the company shall encourage principles and guidelines that are consistent with those set out in this policy. With regard to third parties with which Enagás maintains business relations (regular suppliers and national or international business partners), Enagás shall promote principles and guidelines consistent with its Code of Ethics and its Policies, so that third parties have a framework of ethics and integrity aligned with that existing at Enagás.

No breaches of the Code of Ethics or other company policies were identified in 2022, as in the previous two years.

See the Code of Ethics and Policies section on the corporate website [GRI 2-23, GRI 2-24, GRI 2-25]

Compliance Management System

The Enagás Compliance Management System is overseen by a specific functional area, which is supported by synergistic functions and other corporate support areas including the participation of local compliance officers located in certain countries where Enagás operates.

The Legal Services and Compliance Department, as the essential core of Compliance functions, is organically assigned to the Chief Executive Officer and functionally assigned to the Audit and Compliance Committee of the Board of Directors, to which it communicates and reports on its activities, making it a high-level body within Enagás. The Compliance Function is autonomous, carrying out its tasks in accordance with the Compliance Policy and the standards and procedures that implement it. It is endowed with the utmost independence, so that its judgement and its way of proceeding are not conditioned by issues that prevent or hinder it from freely carrying out its essential tasks in order to achieve Compliance objectives. [GRI 2-13]

The appointment and eventual dismissal of the Director of Compliance shall be carried out through Enagás' existing procedures for such purposes, also requiring the approval of the Audit and Compliance Committee.

The Enagás Compliance Management System is built around the Compliance Policy and the rules and procedures that implement it.

The Enagás Compliance Management System is built around the Compliance Policy and the rules and procedures that implement it

The Compliance Function is in charge of managing the Compliance System in accordance with the provisions of the Policy and the General Compliance Standard, also identifying those responsible for other synergistic areas or areas that may regulate matters subject to monitoring on its part, in order to coordinate with their managers the prevention, detection and management of any non-compliance risks associated with their activities. The Compliance Function also assumes other responsibilities related to the System, including but not limited to training and raising awareness in compliance matters and the management of non-compliance risks.

The Management System also sets out a double reporting line for the Compliance Function: one through the corporate areas and the other managed by Compliance Officers at the different subsidiaries in countries in which they have been appointed. The Compliance Function thus coordinates compliance risks globally, avoiding information losses and inconsistencies.

In 2022, Enagás strengthened its Compliance Management System by incorporating a sanctions procedure in its General Regulations to implement the most important aspects of external due diligence at Enagás with regard to embargoes and sanctions imposed by international bodies that may be imposed on third parties with which Enagás has a relationship.

See the Compliance Policy on the corporate website.

Corporate Defence

As part of in the Compliance Management System, Enagás has a Corporate Defence Programme. It acts as the core of the company's criminal compliance, notwithstanding the existence of policies, procedures and controls that illustrate its content and contribute to preventing crimes being committed by any person who is part of Enagás as well as, in their respective areas of relation, by contractors, suppliers, business partners and any third party that collaborates with or acts on their behalf. In this regard, in 2022, the Board of Directors approved the company's Corporate Defence Policy, which includes commitments on crime prevention that reflect the company's resolute opposition to the commission of any criminal offences and its will to combat such acts, in line with the company's principle of "zero tolerance" towards the commission of crimes.

The Corporate Defence Programme in Spain includes the following elements:

• Criminal risks, considering the activities carried out by the company and its exposure to the commission of different crimes. These include Money Laundering, establishing specific controls to prevent and detect possible acts that could cause this risk to become a reality.
• Roles and responsibilities defined by a governance structure aligned with Art. 31 bis 2.1 and 2 of the Spanish Criminal Code. In this respect, the role of the Audit and Compliance Committee of the Board of Directors has been defined as the Crime Prevention Body.
• Map of criminal risks and activities exposed to those risks.

Within this map, Enagás has considered some particularly important risks and included them in the Bribery and Corruption Risk in a broad sense (such as bribery, corruption in business and money laundering), so as to ensure special vigilance and control of activities that could lead to conducts related to these crimes, without falling under the specific criminal type. In this regard, Enagás has updated its risk map in 2022, adapting it to the regulatory changes that have modified the Criminal Code and expanded the catalogue of offences attributable to legal entities.

• Inventory of controls, both general and specific, that help prevent potential crimes from being committed at Enagás.
• Disciplinary system articulated around compliance with the Code of Ethics which ensures compliance with the model via disciplinary measures.

In addition to its Corporate Defence Programme, in line with the Spanish Criminal Code, Enagás has specific Corporate Defence Programmes for Mexico and Peru, adapted to each country's local regulations governing the liability of legal entities for the commission of crimes.

See the Corporate Defence Policy on the corporate website.

Anti-fraud, corruption and bribery

Enagás has an Anti-Fraud, Corruption and Bribery Policy in place which reflects the company's vehement opposition to the committing of illicit or unlawful acts and its firm will to combat and prevent them, for the purpose of fulfilling its zero tolerance principles. It is the Board of Directors that approves the Anti-Fraud, Corruption and Bribery Policy, and therefore 100% of the Board members are informed about the commitments set out in the Policy and the rules and procedures that implement it. [GRI 205-2]

All activities have been analysed for these possible corruption risks and the company has put in place a framework of controls in order to prevent and mitigate them. In particular, the risk of corruption in relations with public officials or other third parties with which Enagás has dealings. In this context, Enagás has established clear guidelines for action: to accurately record all payments to third parties and not to accept or make inappropriate payments, such as facilitation payments, payments in kind or commissions, or advantages or privileges of any kind for unethical purposes. These measures also contribute to the prevention of potentially more serious acts, such as money laundering. Of course, in order to avoid any appearance of money laundering, both the offer and the acceptance of payments in cash or equivalent are expressly prohibited. Enagás pays special attention to suspicious payments from third parties, such as payments by bearer cheques, payments in currencies other than agreed currencies, payments from persons or entities domiciled in tax havens, payments from entities where it is not possible to identify the parties or the final beneficiaries, among others.

Enagás also collaborates with the authorities if they require help to investigate possible cases in the markets in which Enagás operates. It also provides the information they may request in a transparent manner. [GRI 205-1]

The Enagás Corruption Prevention Programme is based on the ISO 37001 standard on antibribery management systems, and is laid out in the Enagás Anti-Fraud, Corruption and Bribery Policy, and the internal regulations which implement it.

In 2022, Enagás has externally certified its Corruption Prevention Programme based on ISO 37001, the anti-bribery management system standard.

In 2022, Enagás certified its Corruption Prevention Programme, based on ISO 37001

See the Anti-fraud, Corruption and Bribery Policy on the corporate website

In 2022, no cases of corruption were identified in the company, as in the previous two years. [GRI 205-3]

Antitrust

As part of the Company's Compliance Management System, Enagás developed an Antitrust Programme whose purpose is not only to avoid or reduce administrative sanctions on the company, but also to promote a corporate culture of ethics and compliance that respects the regulations that defend free competition.

The pillars of the Antitrust Programme are:

• The Antitrust Policy establishes the bases and mechanisms to promote a culture of business ethics that is conscious and respectful of the principles of free competition, and sets out the essential guidelines for corporate and employee behaviour in this regard.
• The Antitrust General Standard describes in a structured manner the elements that Enagás has established for the prevention, detection and management of risks, in order to comply with the provisions of antitrust regulation and to achieve the company's strategic and operational goals and objectives where Compliance is concerned.

This Standard is aligned with the recommendations in this area of the National Commission on Markets and Competition. In this regard, the main purpose of the Standard is to structure an environment of prevention, detection and early management of antitrust risks, as well as to reduce any undesired effects in the event that they do materialise, contributing to the creation of a culture of ethics and respect for the law among all employees in all applicable areas, so that all can reflect it in their daily conduct.

See the Antitrust Policy on the corporate website

Responsible tax practice [GRI 207-1, GRI 207-2, GRI 207-3]

Enagás adopts a focus of responsible tax practice based on prudence and aligned with the recommendations set out in the OECD Guidelines for Multinational Enterprises.

The Responsible Tax Practice Policy, approved by the Board of Directors, sets out the strategy and principles that must guide the conduct of all employees, senior managers and directors of Enagás, as well as third parties with whom the company has relationships.

Enagás adheres to the Code of Good Tax Practices, and presents a Fiscal Transparency Report in line with the company's commitment to tax transparency. The Board of Directors reviews and approves this report on an annual basis.

Moreover, in accordance with the public reporting commitments set out in the Fiscal Policy, the company publishes in this report the total tax contribution and the taxes paid in the different jurisdictions where the company operated through affiliates (see the 'Financial and operational excellence' section in this chapter).

With regard to tax havens, and in accordance with the Tax Policy, Enagás does not use opaque structures in order to reduce its tax burden, nor does it carry out artificial operations not linked to its business activity to reduce taxation. Likewise, it will not make investments in or through territories classified as tax havens according to current Spanish tax regulations in order to reduce its tax burden. The Enagás Group does not currently have a presence or carry out any activities in territories classified as tax havens in accordance with current Spanish legislation.

Enagás adopts a focus of responsible tax practice based on prudence and aligned with the recommendations set out in the OECD Guidelines for Multinational Enterprises.

As for audits of applicable taxation, at the end of 2022, audits were pending for the years 2019 to 2022 for the taxes applicable to the Group, with the exception of corporate income tax, which is pending audit for the years 2018 to 2022. During financial year 2021, Enagás, S.A. and Enagás Transporte, S.A.U. were notified that the Central Economic Administrative Court (TEAC) had rejected the claims filed in relation to the assessments signed challenging the Corporate Income Tax for the years 2012 to 2015. A contentious-administrative appeal has been filed against these findings of the TEAC before the National Court. However, it is not expected that any liabilities will arise that will significantly affect the Enagás Group's equity situation.

See the Fiscal Policy on the corporate website

06/2022

In 2022, Enagás obtained the seal of the highest category of Fiscal Responsibility awarded by the Haz Foundation (t*** Seal). This seal certifies that Enagás meets the highest standards of fiscal transparency and responsibility among the IBEX 35 companies.

European Transparency Register [GRI 2-28, GRI S11.2.4]

The company is enrolled in the European Transparency Register, to which it periodically reports information on its activities and resources in order to contribute to the improvement and progress of European Union legislative and regulatory frameworks, especially in those developments that have a direct or indirect impact on the gas transmission and storage business, liquefied natural gas, renewable gases and the Spanish and European gas industry in general. Enagás has adhered to the Code of Conduct of the European Transparency Register, compliance with which is mandatory in order to be included in the register.

Enagás has four professionals participating part-time in different activities related to the transparency register, including a permanent representative in Brussels. Annual costs in 2022 were between 200,000 and 300,000 euros (slightly over 200,000 euros in 2021), distributed as follows: personnel expenses (68%), membership fees (21%), consultancy costs (7%), office and administrative costs (2%), representation, communication and public relations costs (2%) and operating costs (<1%).

Similarly, Enagás is a member of and participates in commercial associations, business associations and groups such as chambers of commerce and think tanks. The amount allocated in 2022 was 393 thousands of euros (328 thousands of euros in 2021).

In relation to lobbying at a European level, the main associations in which Enagás participates and which carry out this activity are:

• GIE (Gas Infrastructure Europe): European Association of Gas Infrastructure Operators, which also promotes the use of renewable and low-carbon gases (contribution of 20,000 euros).
• Hydrogen Europe: Association representing companies and organisations with an interest in different parts of the hydrogen value chain, dedicated to promoting policies and initiatives at European level for the better development of the hydrogen sector (total contribution of 18,000 euros).
• ENTSOG: European TSO Network that aims to facilitate and enhance cooperation between national gas transmission system operators across Europe, fulfilling the tasks entrusted to them by European regulation, and ensuring the development of a pan-European gas system aligned with European energy and climate objectives (total contribution of 596,405 euros, of which approximately 9,400 euros are earmarked for lobbying).

In addition, financial contributions were made to the following initiatives:

• Gas for Climate: Consortium of European TSOs and other associations promoting the development of renewable and low-carbon gases (total contribution of 80,000 euros, of which approximately 24,000 euros are earmarked for lobbying).
• European Hydrogen Backbone (EHB): an initiative made up of more than thirty gas energy infrastructures with the aim of accelerating Europe's decarbonisation process by setting out the key role of hydrogen infrastructure (total contribution of 30,000 euros, of which approximately 8,000 euros are earmarked for lobbying).

Enagás also contributes actively to other associations and groups active in Europe, such as, for example: Marcogaz, NGVA, GasNaturally, ERGaR, EASEE-gas, CEOE and CCE, among others. [GRI 2-28, GRI S11.2.4]

Training in and dissemination of ethics and compliance [GRI 205-2]

Enagás professionals are provided with the opportunity to undergo training on the Code of Ethics. The training is structured according to the company's values and covers issues of particular relevance such as the fight against fraud, corruption and bribery, fiscal responsibility and respect for human rights, among other topics. In 2022, online training on the Code of Ethics was completed by 97.8% of employees (96.9 % in 2021). It is a tool to prevent irregularities, including those that could involve the commission of crimes.

In recent years, Enagás has provided specific training on:

• Corporate Defence Programme: in 2022, this training has been completed by 95.9% of employees (94.4 % in 2021). The course includes general information on the Corporate Defence Programme and practical cases related to the most relevant crimes related to the company's activity.
• Corruption Prevention Programme: in 2022, this training has been completed by 91.4%46 of employees (81.8 % in 2021). As part of the Compliance Plan, specific training on corruption prevention is planned for the members of the Board of Directors is planned for 2023 (37.5% of the Board has already received this training).
• Antitrust Programme: all employees involved in competition-related activities received training on the model. This training is not carried out on an annual basis; it was carried out for the last time in 2021 (for 69 professionals).

Enagás regularly carries out awareness campaigns on matters related to ethics and compliance

Enagás also regularly carries out awareness campaigns on matters related to ethics and compliance, such as the company's own values and principles of action, management of the acceptance and offering of gifts and Ethics Channel contact information and channels of communication.

[GRI 205-2]

⁴⁶ The breakdown by professional group is as follows: 92.3 % of managers, 92.0 % of technicians, 87.6 % of administrative workforce and 90.8 % of operators.

3.7 Financial and operational excellence

[GRI 3-3]

Financial and operational excellence is one of our main material topics, given that the efficient management of the company's assets is one of the key strengths for the sustainability of the business in the short, medium and long-term.

The key aspects on which we focus are sustaining our excellent results over time, a financing strategy based on diversification, and driving operational excellence through continuous improvement programmes, digitalisation, corporate entrepreneurship and the efficiency plan.

Sustainable Management Plan

Main lines in 2022 2023 lines

• 376 million euros net profit (2).
• Control of recurring operating expenses, as a consequence of the implementation of the company's 2022-2026 Efficiency Plan.
• 39% of the contribution to the net profit comes from affiliates (2).
• FFO/Net debt >14%(1), leverage compatible with credit metrics set by S&P and Fitch for a BBB rating.
• 1.72 €/share dividend (+1% vs. 2021)

• 100% technical and commercial availability.

• 1.74 €/share dividend (+1% vs. 2022)

• Net profit ~ 310-320 million euros (includes capital gains from the sale of the Morelos pipeline and the contribution from the increased stake in the Trans Adriatic Pipeline).
• EBITDA ~ 770 million euros
• Implementation of the Efficiency Plan for operational and financial expenses in line with the 2022-2030 Strategic Plan.
• Financial structure: FFO/ND >14% (compatible with BBB credit rating from S&P and Fitch).

€1.72	375.8 M€	3,468.9 M€	>14%
dividend per share in 2022	net profit (2)	net debt (2) (4.8x net debt/adjusted EBITDA) (1)	FFO/Net debt (1)

(1) These figures are included in the Alternative Performance Measures Report, available at: https://www.enagas.es/en/investor-relations/financial-information/alternative-performance-measures-apm/. (2) Figures from the income statement of the Consolidated Annual Accounts of the Enagás Group for financial year 2022.

Financial excellence

2022 Results [GRI 201-1, GRI 207-4]

Results are in line with the targets set for 2022.

In M€	2021	2022	% variation
Total revenue (1)	991.2	970.3	-2.1%
EBITDA (2)	895.3	797.4	-10.9%
EBIT (2)	583.4	478.2	-18.0%
Net profit (1) (3)	403.8	375.8	-6.9%

(1) Figures from the income statement of the Consolidated Annual Accounts of the Enagás Group for financial year 2022.

(2) These figures are included in the Alternative Performance Measures Report, available at:

https://www.enagas.es/en/investor-relations/financial-information/alternative-performance-measures-apm/

(3) 375.8 million euros net profit, which includes the result of investments accounted for using the equity method, which is recorded net of tax effect. The breakdown of net profit per country is as follows: Chile 200.2 million euros, Spain 190.0 million euros, Peru 56.2 million euros, Switzerland 46.9 million euros, Mexico 9.6 million euros, Greece 8.1 million euros, United Kingdom -0.1 million euros and USA -135.1 million euros.

Evolution of the share price

At the close of the 2022 financial year, the Enagás share stood at 15.5 euros, representing a market cap of 4,067.5 million euros.

During 2022, the Enagás share reached a maximum closing high of 22.11 euros per share (May 25) and a minimum closing low of 14.475 euros per share (October 13). Enagás' average daily trading volume in 2022 was approximately one million shares per day.

Financing strategy

Enagás has maintained its policy of improving the financial expenses associated with debt, seeking to lengthen the average life of the debt and hedge interest rate and foreign currency risks.

Leverage and liquidity	2021	2022
Net debt (2)	4,276.8 M€	3,468.9 M€
Net debt/EBITDA (adjusted)(1) (3)	5.1x	4.8x
FFO/Net debt (3)	16.4%	17.6%
Financial cost of debt(2)	1.7%	1.8%
Liquidity(2)	3,299.5 M€	3,793.8 M€

(1) EBITDA adjusted by dividends received from affiliates.

(2) Figures from the income statement of the Consolidated Annual Accounts of the Enagás Group for financial year 2022.

(3) These figures are included in the Alternative Performance Measures Report, available at:

https://www.enagas.es/en/investor-relations/financial-information/alternative-performance-measures-apm/

Debt maturity (M€)

Consolidated Management Report 2022

Debt structure

Over 80% of Enagás debt is fixed rate

Total tax contribution [GRI 203-2, GRI 207-4]

The total tax contribution made by Enagás in 2022 amounted to 228 million euros (220 million euros in 2021), of which 48% corresponded to input taxes47 (109 million euros) and 52% to taxes collected48 (119 million euros) (in 2021, 114 and 106 million euros, respectively).

The total tax contribution is calculated using the cash method and taking into account the globally integrated entities and joint operations (see the 'Consolidation principles, a) Consolidation methods' section of the Consolidated Annual Accounts).

Tax paid in 2022 corresponded almost entirely to tax paid in Spain49.

Total tax contribution of the Enagás Group

(1) Including the following items: Corporate income tax, Tax on Economic Activities and movable capital income retentions.

⁴⁸ Taxes collected are those that have been paid on behalf of other taxpayers as a result of Enagás' economic activity, without entailing a cost to the Company other than its management.

⁴⁹ The additional contribution of national and international affiliates accounted for using the equity method was 125 million euros, of which input tax was 82 million euros and tax collected was 43 million euros.

⁴⁷ Input taxes are those taxes that the company has paid to Public Administrations of the different states in which it operates. These taxes are those that have entailed an effective cost for Enagás, such as corporate income tax and environmental taxes.

Country-by-country contribution [GRI 203-2, GRI 207-4]

Below is a breakdown of the Enagás Group's tax contribution country by country in 2022 including the tax jurisdictions of Spain, Mexico, Peru, Chile and the United States, companies that are fully consolidated (see the 'Consolidation principles, a) Consolidation methods' section of the Consolidated Annual Accounts).

Tax contribution by country in 2022 (€)

	Domestic	Foreign third parties									Profit before	Corporate Income	Corporate income tax	Tangible assets other than cash and
Jurisdiction	number of employees	intercompany	third parties	Germany	Belgiu m	Colombia France Greece			Italy	Morocco		Mexico Norway	Peru	United Kingdo m	Switze rland	corporate income tax	Tax paid (cash basis)	accrued in the current year (1)	cash equivalent instruments
Spain	1,373	0	965,811,047	40,832	343,568	42,099		182,230 830,135 125,431		70,895	95,883	28,288				747,790 176,480 293,457 285,356,290	92,961,539	79,966,677	4,217,213,146
Mexico	2	0	111,599	0	0	0	0	0	0	0	0	0	0	0	0	-1,000,837	0	7,919	145,473
Peru	3	0	828,507	0	0	0	0	0	0	0	0	0	0	0	0	-186,624	6,654	4,118	358,592
USA	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	-9,598,663	0	1,398,241	0
Chile	1	0	579,976	0	0	0	0	0	0	0	0	0	0	0	0	237,294,626	0	68,610,667	0

(1) In Spain, the existing increase in the effective rate vs. the nominal rate is mainly due to the limitation of the dividend exemption to 95%. In the other jurisdictions (Mexico, Peru, United States and Chile), this difference is due to i) their status as holding companies, with exempt income (dividends); or ii) companies with an immaterial level of income. Taxation in these jurisdictions is carried out through equity-accounted affiliates, the details of which are not included in this scope.

Operational excellence

Commercial logistics hub

Due to its geo-strategic location, Spain is in a privileged position in terms of the liquefied natural gas (LNG) market, as it has a wide range of origins, both for domestic consumption and for exporting natural gas to Europe. Spain has the highest number of regasification plants of any European country, and has a meshed network of gas pipelines. This gives the country great capacity for storage, transmission and operational flexibility.

Given this situation, and after more than fifty years of experience in developing, maintaining and operating regasification plants and transmission pipelines, Enagás positions itself as one of the most reputable transmission companies in Europe in terms of facility efficiency. Our terminals are now recognised as among the most efficient in Europe, with availability of over 99%.

At Enagás, we make our facilities available to customers and provide traditional LNG logistics services such as tanker unloading, regasification, transferring LNG to tankers and truck loading, as well as new small-scale and bunkering services. For the latter, we are adapting our terminals, implementing the latest technologies that will position the Spanish Gas System as a 'logistics hub' for Europe in the gas market. With respect to small scale operations, a total of 41 operations were carried out at our terminals during 2022, an increase of more than 41% compared to the number of operations carried out in 2021. It should be noted that Enagás is a pioneer in PTS (Pipe to Ship) operations, which are carried out at the Cartagena terminal. A total of nine such operations were carried out during 2022, with a loaded energy of 15.1 GWh.

The Spanish Gas System

Enagás was certified as an independent network operator (TSO: Transmission System Operator) by the European Commission in 2012, securing its positioning as a European sector leader. It also works as the Technical Manager of the System following the publication of the Hydrocarbons Law. This means it is responsible for the operation and technical management of the Basic Network and the secondary transmission network, guaranteeing the continuity and security of the natural gas supply as well as proper coordination between access points, storage facilities, transmission and distribution.

Enagás has been carrying out the majority of its activities in Spain since its founding in 1969. It has built up a meshed network of more than 12,000 km of high-pressure gas pipelines, facilitating access to gas from almost every point on the Iberian Peninsula. Enagás holds stakes in six of the seven regasification plants in the Iberian Peninsula (four wholly-owned terminals and two part-owned), and has three underground storage facilities. As the main transmission company, Enagás has developed the main infrastructure facilities of the Spanish Gas System, making it a leader in security and diversification of supply and consolidating its presence on the international stage.

See the Annual Report on the Spanish Gas System on our corporate website

LNG terminals

Enagás is one of the companies with the most LNG terminals in the world. We are pioneers in the development, maintenance and operation of this type of infrastructure, and our knowledge and experience have made us international leaders in the sector.

Our terminals have a unique logistical position: their placement between the Atlantic, Cantabrian and Mediterranean catchment areas favours sea transmission and the diversification of LNG sources and destinations. In addition, as regards emissions, Spain is the entry point for a possible ECA (Emission Control Area), an area that could be declared particularly vulnerable to pollution, and where the growth of the small-scale market could be a solution.

At Enagás, we offer a vetting service for the assessment and inspection of methane tankers, both in the large and small-scale sectors.

At the forefront of technology and efficiency

• 100% commercial availability at all LNG terminals
• Load rate higher than 3,500 m3/h in all our plants
• Zero operational losses from boil-off during tanker loading operations
• Minimum coefficient of shrinkage in operations
• Maximum flexibility in the allocation and adjustment of slots for tanker offloading and loading
• Terminals ready to receive the largest LNG tanker ships in the world Q-Max with up to 266,000 m3 of LNG50

Commercial services in Spain [GRI 2-6]

At Enagás, we are working to provide our customers with the set of services we provide, in accordance with current regulations. The Third-Party Network Access (ATR) services that we provide at our facilities are fundamentally classified as:

• Individual services:

• Tanker unloading
• Regasification
• LNG storage
• Truck loading
• LNG terminal-to-tanker bunkering
• LNG ship-to-ship transfer
• Ship cooling
• Virtual liquefaction
• Entry to the Virtual Balancing Point
• Storage at the Virtual Balancing Point
• Departure from the Virtual Balancing Point
• Departure from the Virtual Balancing Point to a consumer
• Natural gas storage in basic underground storage facilities
• Injection

⁵⁰ Except for the Huelva terminal, which can only moor vessels of up to 180,000 m3.

– Extraction

The sale of these services is carried out through a framework access contract and through standard capacity products, i.e. through the signing of annual, quarterly, monthly, daily or intraday contracts.

• Bundled services

• Vessel unloading, LNG storage and regasification.
• Vessel unloading, LNG storage, regasification and flow on to the Virtual Balancing Point.
• LNG storage and regasification.
• LNG storage, regasification and flow on to the Virtual Balancing Point.
• Vessel unloading, LNG storage and LNG loading from plant to vessels.
• Underground natural gas storage, injection and extraction.

Find out more about commercial services in Spain on our corporate website

As our work is carried out in a regulated environment, the Regulation and its implementation form the basis of our plans moving forward. For this reason, it is worth noting that in the last few years, the last regulatory pieces necessary to establish the new regulatory framework that applies to the Spanish Gas System have been released.

• Royal Decree 1184/2020, of December 29, establishing the methodologies for calculating charges in the gas system, the regulated remuneration of basic underground storage facilities and the fees applied for their use.
• Order TED/65/2021, of January 11, 2021, establishing the methodology for calculation of the last resort natural gas tariff, in order to adapt it to the new toll structure of the gas system.
• Circular 9/2021 of the CNMC of December 15, 2021, setting out the methodology and conditions for access and capacity allocation in the natural gas system.
• On March 24, 2022, the CNMC's resolution on procedures, congestion management mechanisms and anti-capacity hoarding in the natural gas system was published.
• Resolution of the National CNMC of May 19, 2022, establishing the access tolls to the transmission networks, local networks and regasification for the 2023 gas year.
• Order TED/929/2022, of September 27, 2022, establishing the gas system charges and the remuneration and fees for basic underground storage facilities for the 2023 year.

• And on November 10, 2022, the CNMC published a resolution establishing the technical management regulations for the gas system on scheduling, nominations, allocations, balancing, the management and use of international connections and self-consumption.

This body of regulations establishes the basic foundation for an important change in the management and commercialisation model of the Spanish Gas System. It also includes changes in the gas balance management model, in an attempt to minimise operators' risks in the event of fraudulent movements by any shipper; capacity is allocated through market mechanisms, mainly auctions.

In 2022, commercial availability was at 100% and technical availability was at 99.72% (in 2021, 100% and 99.75 %, respectively). This year, Enagás terminals unloaded a gas volume of 172 TWh (125 TWh in 2021); regasification amounted to 150 TWh (100 TWh in 2021). [GRI 2-6]

Customer management [GRI 2-6]

Our customers are transmission companies, shippers, distributors and the direct consumers in the market (consumers which connect directly to our facilities), to which we supply a wide range of LNG services, transmission and underground natural gas storage.

	Spain	76%
	United Kingdom	6%
	Switzerland	5%
255	Denmark	3%
shippers	Italy	2%
	Belgium, France, the Netherlands,
	Germany and Portugal	1% each country
	Other	3%

See the list of our customers on our corporate website

Enagás regularly evaluates the satisfaction of its customers and professionals (see the 'People' section) through satisfaction surveys, the results and associated improvement plans being reported to those same stakeholders. In the case of customers, the results obtained in 2022 were as follows:

Results of customer satisfaction surveys [GRI 2-29]

		Services	Customer	Number of responses out of the total	Assessment of services rendered (out of 10)	Number of responses out of the total	Assessment of services rendered (out of 10)
					2021	2022
Business operation	Enagás as transmission company (1)	Capacity management and viability analysis, infrastructure operation and programming, etc.	Shippers	30 / 46	9.0 (2)	33 / 50	8.8 (2)
			System operators (transmission and distribution companies)	4 / 8	9.4	3 / 8	8.3
	Enagás as Programming, Technical Manager of the and balances, etc. System (3)		Shippers	35 / 150	8.3	52 / 172	8.4
		operations, distribution	System operators	7 / 14	9.6	8 / 14	8.6

(1) See the improvement plans associated with satisfaction surveys on the corporate website.

(2)The satisfaction target set for 2021 and 2022 was 8.3.

(3) Survey conducted in accordance with the guidelines of the National Commission on Markets and Competition (CNMC) established in the Incentives Circular (Circular 6/2021, June 30). The remuneration received by the Technical System Manager is linked to the participation rate of customers in the survey

In 2022, Enagás resolved 100% of the 78 formal complaints it received from customers51. These complaints were received in connection with Enagás' activity as Technical Manager of the System (GTS). Their quantity falls within normal bounds given its processes and nature, as well as the regulatory changes of the last few years. In December 2022, a specific tool for the management of complaints, queries and incidents was implemented to automate the process and provide traceability.

In terms of managing customer's information privacy, Enagás has a Privacy Policy and complies with the General Data Protection Regulation (GDPR). In 2022, Enagás did not receive any complaints related to privacy or loss of customers' personal data (nor did it receive any complaints in this area in 2021 and 2020).

See the Information Privacy Policy on the corporate website

[GRI 2-6]

Asset management: business continuity and resilience [GRI 3-3]

Enagás has basic principles and guidelines for action in the face of possible threats and adverse situations that give it an increasingly solid structure for managing a crisis.

During 2022, Enagás promoted the implementation of its global resilience model among various peer companies, in order to establish a comparison of both adaptive and structural resilience, which will enable Enagás to apply current best practices.

Likewise, Enagás is moving towards an increasingly in-depth analysis of all critical processes aimed at business continuity, establishing the identification of procedures for action and recovery in the event of any incident in this area.

In 2023, Enagás will continue to focus on improving business continuity and company resilience, implementing the actions of all the analyses carried out in 2022.

All of this is complemented with the promotion and acceleration of other identified initiatives that already form part of other company programs. This will allow us to provide a better response to the new needs arisen (definition of ISO 55001 Asset Management, Digitalisation Plan, Knowledge Management, etc.).

Pipeline integrity

Enagás carries out inspection and maintenance work to ensure the integrity of its gas infrastructures, making sure they remain in proper condition. The company sets out integrity plans each year based on the risk involved in the activities to be carried out in the gas pipelines. These activities include:

• Internal inspections with smart tools to find potential anomalies in gas pipelines. During 2022, more than 9.3% of Enagás' gas pipeline network was inspected internally (10% in 2021).
• Indirect external inspections to locate defects in the anti-corrosive coating of gas pipelines.
• Excavations (test pits) for the direct evaluation of anomalies identified through inspections (internal and/or external indirect).
• Complementary safety activities to detect incidents within the gas pipeline right-of-way (observation by car, observation by foot, aerial observation and leak detection). In 2022, more than 89,500 km of gas pipelines were monitored.

Closure and rehabilitation [GRI 3-3, GRI S11.7.4, GRI S11.7.5, GRI S11.7.6]

Enagás facilities have a useful life set out during their design and construction. Enagás makes investments and technical improvements to extend the useful life of its assets while maintaining the required levels of safety, quality, environmental protection and efficiency. However, Enagás establishes closure and rehabilitation plans that consider the possible impacts on the environment and local communities once the useful life of the plant has ended. Enagás has recorded financial provisions

⁵¹ In 2021 and 2020, 76 and 166 formal complaints were received respectively (in both years, 100% of them were resolved during the year).

for the dismantling of all its regasification plants and underground storage facilities, amounting to more than 293,000 euros.

Although the useful life of the underground storage facilities has not yet ended, these infrastructures already have detailed closure and rehabilitation plans as required by the Hydrocarbons Law.

In 2021 and 2022, no Enagás facilities were closed down.

[GRI 3-3, GRI S11.7.4, GRI S11.7.5, GRI S11.7.6]

Continuous improvement programmes

Enagás uses methodologies such as Lean-Kaizen and Design Thinking, among others, to identify innovative solutions focused on efficiency and process improvement, thus generating disruptive results in the short-term.

In this line and in order to face new challenges, in the area of infrastructures, the implementation of the Strategic Plan for Continuous Improvement has continued with the aim of identifying and prioritising cross-cutting initiatives with an impact on strategic drivers of continuous improvement, which encourage the development of people and the use of new methodologies and which promote the culture of continuous improvement and operational excellence.

In 2022, the operation of this Strategic Programme for Continuous Improvement was published internally under a procedure integrated into the company's documentary structure that has made it possible to publicise and activate the identification of improvement initiatives among all professionals through the creation of a Continuous Improvement mailbox.

Within the Continuous Improvement Programme, the "Daily Kaizen" continued being promoted. The programme focuses on people and on strengthening team communication and collaboration. Teams are equipped with lean tools in order to generate autonomous teams, thus allowing for a sustainable cultural change over time (Kanban boards, 5S, standards and problem solving).

In recent years, progress in this area has centred on boosting the coordination and communication between different teams through the development and implementation of digital Kaizen boards and promoting best practice sessions involving the different teams.

In addition, and with a view to facing new challenges for the company, cross-cutting Kaizen projects are being launched to provide innovative solutions focused on the efficiency of specific processes.

3.8 Local communities

[GRI 3-3, GRI 413-1]

Relations with local communities are of importance to the company, since our activities impact the areas in which we operate. They encourage competitiveness in the industry, enhance energy supply security, contribute to decarbonisation and create direct and indirect employment. We carry out our activity guaranteeing the safety of infrastructure, minimising impacts on ecosystems and the population.

The most relevant aspects of managing relations with local communities are the identification of local stakeholders, the information and consultation processes we carry out in infrastructure development activities and action plans (social investment).

Sustainable Management Plan

Main lines in 2022 2023 lines

• Update of the Enagás Group's Social Action Strategy.
• Joining the LBG (London Benchmarking Group) working group and adoption of the associated methodology.
• Volunteer activities focused on team cohesion and improving the social and labour integration of vulnerable groups (women, persons with disabilities, etc.).

• Contribution of equipment to repair Ukraine's gas transmission network and financial donation to UNHCR to assist in the relief of refugees from Ukraine.

• Alignment of partnerships with the Social Action Strategy approved in 2022 to meet the new targets within the framework of the company's 2022-2030 Strategic Plan.

• Digitisation of the monitoring of the strategy and the impact of partnerships on communities.
• Active listening to find possible new collaborations in the areas in which Enagás is present.
• Advancement in the fulfilment of the 2030 Agenda (SDG) through corporate volunteering with a focus on initiatives linked to improving the employability and social inclusion of vulnerable groups.

1.9	0.52%	21	438
million euros of investment in social action	social action investment with respect to net profit	corporate volunteering initiatives	professionals took part in corporate volunteering initiatives

Local community management

[GRI 2-25, GRI 2-29, GRI 3-3, GRI 413-1, GRI S11.15.4]

Identification of local stakeholders

In local communities where Enagás develops and operates infrastructure, the company's priority is to contribute to their social and economic development and to minimise environmental and social impact while guaranteeing safety.

For this purpose, the first stages of building, operation and maintenance projects involve analysis of the area in terms of social, economic and environmental aspects, from which local stakeholders are identified.

This enables stakeholder maps to be created for the management of crises and emergencies affecting infrastructure, in which key collectives, communication channels and relevant issues are identified (see the 'Health and safety' section).

Furthermore, the needs analysis of the area enabled the identification of key collectives and associations (NGOs, local councils, etc.) which are an important source of information for understanding the local context and for the establishment of partnerships (see the 'Social investment' sub-section in this section).

Information and consultation processes

Enagás conducts environmental impact studies (which also asses social aspects) for construction projects and assesses environmental aspects for infrastructure operation and maintenance projects. Environmental impact studies are open to public information and are also subject to processes of consultation in which stakeholders may voice their opinion and even propose modifications to a project. EMAS-certified facilities publish an annual report (Barcelona and Cartagena regasification plants and Yela and Serrablo underground storage facilities).

In the case of gas pipeline construction projects, the route design already considers criteria for minimising the impact on local plant and animal wildlife, and for avoiding the occupation of private property. Where the latter is concerned, a regulated procedure is applicable in Spain which includes public information and consultation with the entities affected, which also guarantees transparency in the construction of infrastructure and equal treatment before the law. [GRI 413-2]

In matters related to infrastructure safety, Enagás develops internal emergency plans, which include information on stored chemical substances, human and material resources, scenarios, emergency plans, liability, etc. These plans are registered with the local government authorities, which are responsible for communicating them to the community and creating an associated action plan.

Enagás also holds information sessions in local areas for the purpose of explaining details of projects that are being executed locally, and safety and environment-related issues, among others.

Communication channels with local communities

One of Enagás' priorities is to contribute to socio-economic development in the local communities where it develops and operates its infrastructure

Social action [GRI 413-1]

In 2022 Enagás joined the London Benchmarking Group (LBG) initiative, reviewing and updating its Social Action Strategy to align it with the targets set out in the company's 2022- 2030 Strategic Plan.

Thus, the overall social action target for 2023-2030 is to contribute to security of supply and decarbonisation, promoting a just energy transition through socio-economic development projects and initiatives across the land. Enagás is therefore committed to allocating around 60% of its contribution to security of supply, decarbonisation and the just transition through socio-economic development projects and initiatives. In addition, the company will allocate 20% to actions focused on education, culture, health and aid to vulnerable groups in areas where it operates. The remaining funds will be used for actions categorised as 'Institution building' and 'Strengthening active citizenship' according to the LBG methodology.

In terms of geographical scope, at least 15% of contributions will be allocated to local communities in which Enagás has infrastructure facilities.

The amount committed to social action is 0.4% of annual profit, which will be distributed between social investment and social action initiatives aligned with the business, limiting one-off contributions in accordance with the LBG methodology.

Through dialogue and collaboration with stakeholders, we maximise the positive social impact of our initiatives, whether through volunteering, sponsorships, patronage or donations.

In 2022, the total amount of this social investment reached 1.9 million euros, distributed as follows:

	2020	2021	2022
Amount allocated for social investment (million euros)	3.89 (1)	1.81	1.94

(1) Extraordinary monetary contributions totalling 2.1 million euros were made in 2020 to address the COVID-19 health crisis.

Types of contributions

The amount allocated to sponsorships, patronage and donations was 1,485,945 euros (see the 'Sponsorships, patronage and donations' sub-section of this section), while general management expenses (cost of employees dedicated to the management of social investment and cost of the volunteer programme) amounted to 217,460 euros. The costs of employees' dedication during their working day to volunteer activities amounted to 120,467 euros and donations in kind amounted to 115,191 euros.

Company commitment to sustainable development (euros) [GRI 201-1]

	2020	2021	2022
Contributions to foundations and non-profit organisations (charitable donations: monetary and in kind (1))	2,244,500	81,500	151,031
Association and sponsorship actions (sponsorship and patronage activities)	1,480,349	1,565,722	1,450,105

(1) With regard to donations in kind, Enagás donates computer equipment, mobile phones and discontinued promotional material to associations that use this material solely for charitable purposes

Enagás is committed to allocating around 60% of its contribution to security of supply, decarbonisation and the just transition through socio-economic development projects and initiatives

Types of social investment [GRI 413-1]

Investment in communities

Enagás promotes the development of long-term collaboration initiatives, which contribute to the social and economic development of local communities, giving priority to those areas in which the company operates. For this purpose, it contributes economically and with time to social welfare, economic development, education and youth, health, art and culture, and the environment.

Sustained, inclusive and sustainable economic growth, full

and productive employment and decent work.

The initiatives implemented in this field cover the following aspects targeted by Sustainable Development Goal 8.

• Employment
• Economic inclusion
• Non-discrimination
• Development of abilities

2022

In 2022, Enagás has held various training workshops to help women in vulnerable situations boost their employability. These workshops were carried out in collaboration with the Randstad Foundation and the José María de Llanos Foundation. The latter collaboration involved women in vulnerable situations who had been victims of genderbased violence.

In addition, Enagás contributed in 2022 to the socio-economic development and social well-being of the communities in which it operates through various projects, such as the following:

• In Brihuega, it collaborated with the NGO ACCEM to improve the accessibility of dependent people and promote their personal autonomy in rural areas, and has also supported projects promoted by public institutions to foster social welfare.
• In Lumbier, Enagás once again collaborated with the Municipal Music School to promote culture and education among the rural population.

Commercial initiatives in the community

Within the scope of its social actions, Enagás includes initiatives aimed at supporting research and the development of the gas sector, since natural gas is of great importance for improving competitiveness of industry, and therefore aids the creation of direct and indirect employment. It also promotes initiatives associated with the development of renewable gases, in line with the company's commitment to energy transition and decarbonisation. For this purpose, economic contributions are made in the fields of economic development, education and youth, art and culture, and the environment.

04/2022

Enagás took part in the European Hydrogen Energy Conference (EHEC), organised by the Spanish Hydrogen Association (AeH2), to continue promoting the use of hydrogen technologies. Enagás professionals shared the company's progress in different hydrogen projects with the more than 1,000 attendees.

The company also renewed its collaboration with the Isaac Peral Foundation, which contributes to the development and strengthening of the industrial and technological ecosystem, as well as providing support and advice to the regional government in the development, implementation and improvement of Industrial and Technological Progress for the Region of Murcia.

Enagás' social investment is aligned with the Sustainable Development Goals

partnership for sustainable development

Donations to charity

Enagás engages in a number of specific collaborations as a reaction to emergencies taking place both in Spain and internationally. For this purpose, it makes contributions in cash and kind in the fields of social welfare, economic development, education and youth, health and the environment.

Revitalise the global In the international context, the initiatives are implemented in collaboration with local partners. In Spain, these initiatives are carried out in collaboration with entities and associations, for the purpose of fulfilling Sustainable Development Goal 17. In this way, and through partnerships with different stakeholders, Enagás contributes to achieving the other SDG in the following areas:

• Poverty
• Hunger
• Health
• Education
• Gender equality
• Energy
• Infrastructure
• Reducing inequality
• Climate change
• Terrestrial ecosystems

[GRI 413-1]

2022

Enagás has supported Ukraine after the invasion of the country through various actions. The company has contributed financially to the UNHCR's "Ukraine Emergency" campaign, providing humanitarian aid for refugees, and has promoted the campaign to its professionals. Enagás has also donated emergency material to its counterpart in Ukraine, the Ukranian Transmission System Operator, to repair the gas network (emergency couplings to eliminate leaks, mobile compressors and portable lighting equipment, among others).

Sponsorships, patronage and donations [GRI 413-1]

Enagás collaborates economically with social welfare projects through sponsorships, patronage and donations activities.

The company's procedure for managing sponsorships, patronage and donations establishes the criteria for the reception, approval and follow-up of collaboration requests (financial contributions).

In 2022, monetary contributions of more than 1.5 million euros were made (1.6 million in 2021), distributed as follows:

Areas of contribution

In addition to financial contributions, Enagás made various donations in kind. Amounting to 115,000 euros, these included the shipment to Ukraine of emergency material for the repair of gas infrastructure, the donation of computers and mobile phones to non-profit educational organisations and the donation of our left over shareholder gifts at the 2022 General Shareholders' Meeting to the Madrid Food Bank Foundation and Mensajeros de la Paz (Messengers of Peace).

Corporate volunteering programme [GRI 413-1]

Enagás employees participate in the company's Corporate Volunteering programme 'En nuestras manos' ('In Our Hands'), giving up their time and bringing their skills and talent. There are two forms of cooperation:

• On-site corporate volunteering directly managed by Enagás: activities carried out in collaboration with associations and third-sector organisations, supervised by the company. These on-site corporate volunteering initiatives are carried out during working hours and respond to the needs of the local communities in which Enagás is present. The company, in line with its commitment to equal opportunity and non-discrimination, guarantees that participation in volunteering activities will not lead to work-related discrimination.
• On-site and virtual volunteering platform: the company connects with volunteering opportunities through different associations and third-sector organisations by means of the corporate volunteering portal, a platform that strengthens and extends the existing programme. It encompasses special days organised by the company as well as over 1,200 national and international collaboration opportunities, both face-to-face and virtual, put forward by NGOs.

Enagás commits to:

• Undertaking at least seven volunteering initiatives per year.
• Encouraging the participation of middle and senior management in volunteering through actions and initiatives aimed especially at these groups.
• Implementing volunteer initiatives aimed at specific professional profiles, so that Enagás professionals can contribute their experience and knowledge to help lift up disadvantaged groups

2022

Through the "Euro Solidario" Project, Enagás offers its employees a new form of social collaboration in addition to the Corporate Volunteering programme. The objective is to collect voluntary micro-donations through payroll to finance a social project led by a nongovernmental organisation with a non-profit social purpose. The selected projects are linked to the protection of youth and children.

In 2022, Enagás has encouraged more face-to-face and collective activities, and the number of activities and participation therein has increased compared to the last two financial years.

	2020 (1)	2021 (1)	2022
Number of initiatives	14	12	21
Number of participating professionals	287	170	438
Total number of hours	625	403	2,210

(1) In 2020 and 2021, and with the aim of ensuring the safety of all participants, Enagás encouraged virtual volunteering activities and those carried out individually by employees.

The company carries out a satisfaction survey of the professionals who participate in social initiatives in order to volunteer experience as much as possible, and to find out their satisfaction and assessment of the achievement of the targets of each action.

Volunteering typology:

In 2022, our volunteering included environmental activities carried out to promote the protection and reclamation of natural spaces, initiatives related to the promotion of the social inclusion of people with disabilities, training workshops to boost the employability of women in vulnerable situations, participation in social sports tournaments to promote social projects for the benefit of people at risk of social exclusion and campaigns to collect toys and food for vulnerable families.

3.9 Human rights

[GRI 3-3]

Respect for human rights [GRI 2-23, GRI 2-25]

By acting on each material topic, Enagás ensures that human rights are upheld where applicable to the context and activities of the company. For this purpose, the company follows the roadmap set out by United Nations through its Sustainable Development Goals.

Enagás sets out its commitments to ensure compliance with human rights in its Human Rights Policy. These commitments are developed in the Enagás' Code of Ethics and the corporate policies that comprise it, aligning them with, inter alia:

• United Nations International Charter of Human Rights.
• The International Labour Organisation (ILO) Declaration as well as the fundamental conventions (freedom of association and the effective recognition of the right to collective bargaining; the elimination of all forms of forced or compulsory labour; the effective abolition of child labour; and the elimination of discrimination in respect of employment and occupation) and the conventions concerning indigenous and tribal peoples.
• OECD Guidelines for Multinational Enterprises.
• The European Convention on Human Rights.

Enagás provides an online training programme for all employees so that they can learn the company's methods for ensuring compliance with human rights.

Consult the Human Rights Policy on the corporate website

Identification of rights and risk assessment

Human rights management is addressed using a continuous improvement approach aligned with our Sustainable Management Model. Enagás has a global system in place to identify human rights violation risks and impacts on a regular basis.

The identification of these violation risks and impacts is carried out for different points of the company's value chain (Enagás activities with management control, affiliates without management control and supply chain and customers), considering international standards based on location and activity52, communications and consultations with stakeholders, as well as consultations with external experts in human rights. The human rights identified include labour rights, safety, the environment, ethics and integrity, as well as fundamental rights.

The evaluation of the identified violation risks is carried out through the following assessments:

• Assessment of country-specific risks.
• Corporate Risk Map (see the 'Risk management' chapter).
• Safety risk assessments in posts and facilities (see the 'Health and safety' section in this chapter).
• Environmental impact assessments / environmental risk assessments (see the 'Natural capital and biodiversity' section in this chapter).
• Supply chain assessments (see the 'Supply chain' section in this chapter).

In the assessments carried out in 2022, Enagás considers the level of violation risk to be low across the boards due to the measures that the company has implemented as part of its Sustainable Management Model. Thus, Enagás has human rights risk prevention and mitigation plans in all the geographical areas in which the company operates (see the 'Geographies' section in the 'Our business model' chapter). These plans include the following main measures for each of the main issues identified and target the identified vulnerable groups53. These measures have been set out according to the company's capacity to influence the different points of its value chain.

It is the responsibility of the different areas of the company to establish, within their management scope (people, supply chain, local communities, etc.), action plans, objectives and monitoring indicators to ensure compliance with the commitments established in the policy and to mitigate the risks and negative impacts identified. They are also responsible for periodically evaluating possible changes in risks and impacts.

During 2022, and as in the previous two years, Enagás did not find any human rights violations, so no remediation actions had to be carried out.

In addition to human rights violation risks, Enagás, in an integrated manner with the company's risk assessment processes, identifies and assesses the risk level of each of the risks associated with human rights (for more information on ESG risks and their integration in the company's global risk model, see the 'Risk management' chapter). These identified risks relate to human rights related to labour practices and to society and local communities:

• Work practices: operational and technological risks and criminal liability.
• Society and local communities: strategic, business, compliance and model risks.

⁵² The World Bank, UNICEF, The Economist Intelligence Unit, IPIECA, The Danish Institute for Human Rights, etc.

⁵³ Within the framework of the risk assessments that Enagás carries out each year, vulnerable groups have been identified among the stakeholders (employees, local communities and suppliers). In these cases, action is focused.

Human rights due diligence assessment at affiliates54 [GRI 411-1, GRI S11.17.3, GRI S11.17.4]

Enagás has carried out a human rights risk assessment for Enagás' affiliates. It established that all the companies have commitments to human rights included in their codes of ethics or specific policies, though in some cases, it is necessary to continue making progress to reinforce these commitments by making them public and providing training to their employees.

In general, there is also an advanced level of management regarding the handling of communications and complaints. Due to the importance of this area, the companies received a recommendation to continue with the actions in which they are already involved.

One of the areas in which a higher country risk was identified in several companies is employee relations and working conditions. In this area, the level of management is generally advanced, through room for improvement was found at some companies in terms of formalising procedures related to working hours, breaks and vacations. Likewise, the area of public and private security, which also presents a higher country risk at practically all the companies, stands out for its high level of management in all of them. In the area of community relations, there is an advanced level of management at all the companies, though room for improvement was found at some companies in terms of formalising procedures for managing queries and complaints.

Enagás also notes that this year has had a very positive effect on the companies, so that most of them have implemented improvement projects.

In 2023 Enagás will review its Due Diligence Processes in relation to third parties, focusing on the protection of Human Rights and the Environment, in line with the proposed new European Directive on this issue.

[GRI 2-23, GRI 2-25, GRI 3-3]

Human rights assessed in Enagás activities: [GRI 2-25]

Human rights assessed	Assessmen t result	Measures to reduce the level of risk
LABOUR PRACTICES
The right to decent work and the rejection of forced,	Low risk of violation	Enagás guarantees stability and quality of employment, a commitment that is reflected in its Human Capital Management Policy. The Enagás Collective Bargaining Agreement prohibits the company from employing minors of under 16 years of age (Article 28 of the Collective Bargaining Agreement). [GRI 409-1]
Right to rest and leisure	Low risk of violation	Enagás improves and extends the periods and conditions of rest and leisure established in current legislation (flexibility in start times and lunch break, intensive working days during the summer and every Friday throughout the year, division of annual leave
Right to family life	Low risk of violation	Enagás improves and extends paid leave beyond the provisions of current labour regulations (death of a close relative, illness, reduced working hours for childcare, special circumstances, etc.).
Freedom of association	Low risk of violation	Enagás employees can freely exercise their right to belong to trade unions in order to promote and defend their economic and social interests without this being the basis for discrimination, and any agreement or decision by the company contrary to this principle is deemed null and void (Article 64 of the Collective Bargaining Agreement). [GRI 407-1]
Collective bargaining	Low risk of violation	Enagás has in place a collective bargaining agreement, in line with its Human Capital Management Policy (see the 'People' section in this chapter), which enters into collective negotiations and carries out regular consultations with authorised employee representatives. [GRI 407-1]
Workplace non discrimination and diversity	Low risk of violation	The company has in place a Diversity and Inclusion Strategy, a Diversity and Inclusion Policy, an Equality Plan and a Prevention and Action Protocol at the disposal of its employees for any situation of workplace harassment. This protocol provides a confidential channel for reporting workplace harassment (canal.etico@enagas.es).
Fair and favourable remuneration	Low risk of violation	Part-time employees receive remuneration that is proportional to the salary of full-time employees, with identical employee benefits. In addition, in 2022, Enagás' minimum salary was 1.6 times the minimum inter-professional salary in Spain. [GRI 202-1]

⁵⁴ Affiliates consolidated by the equity method and over which Enagás has no operational control, as they are managed autonomously.

Human rights assessed	Assessmen t result	Measures to reduce the level of risk
Living wage	Low risk of violation	Enagás is committed to establishing a salary high enough for all its employees to have a decent standard of living, sufficient to cover basic needs in accordance with the local cost of living.
Right to a safe working environment	Low risk of violation	Enagás' occupational risk prevention management system, certified under ISO 45001, provides mechanisms for identifying and preventing incidents (see the 'Health and safety' section in this chapter).
Right to life, liberty and security of person	Low risk of violation	The company exercises due diligence when rendering its services in order to prevent errors or omissions that could harm the life, health or safety of consumers or others who may be affected. It also complies with national laws and relevant international guidelines.
Right to freedom of opinion, expression and	Low risk of violation	Enagás has various clear and transparent internal communication channels that allow workers to communicate with senior management.
information SOCIETY AND LOCAL COMMUNITIES
Right to use natural resources	Low risk of violation	The Enagás environmental system, certified under ISO 14001 and EMAS, provides the mechanisms to mitigate the environmental impacts derived from the company's activities (see the 'Natural capital management and biodiversity' section in this chapter).
Rights of communities and indigenous people	Low risk of violation	Through its social action strategy, Enagás contributes to the socio-economic development of local communities, prioritising those areas where the company operates, through sustainable social action models, paying special attention to the most vulnerable communities such as indigenous or tribal populations.
Property rights, resettlement and compensation	Low risk of violation	Enagás' procedures relating to the development of infrastructure construction projects include criteria aimed at avoiding the occupation of privately owned areas and minimising potential relocation of local communities, applying procedures for information, consultation and fair compensation that guarantee transparency and equal treatment. [GRI S11.16.2]

Human rights assessed	Assessmen t result	Measures to reduce the level of risk
Prevention of abuse by security forces and prevention of cruel, inhuman or degrading	Low risk of violation	Enagás ensures compliance with principles on respect for human rights by requesting to the security companies proof of membership to associations that promote respect for human rights and train their employees in this issue. [GRI 410-1]
Privacy of information	Low risk of violation	Enagás has adapted its personal data control and management systems to the latest requirements incorporated by EU regulation 679/2018 (GDPR) and Law 3/2018 (LOPDGDD), in order to continue processing the personal information of its professionals with the maximum guarantees of respect for privacy
[GRI 2-25]

Human rights assessed in the supply chain: [GRI 2-25]

Human rights assessed	Assessment result	Risk Management
• General human rights • Labour • Safety • Environment • Ethics and integrity	Low risk of violation	Enagás ensures that its suppliers, and especially those with workers operating within Enagás' facilities, respect these human rights. We demand a commitment from them, we ask them for the necessary documentation and we conduct audits. (See the 'Supply chain' section in this chapter). [GRI 409-1]
Basic rights / Confidentiality of information	Low risk of violation	Enagás has adapted its personal data control and management systems to the latest requirements incorporated by EU Regulation 679/2018 (GDPR) and Law 3/2018 (LOPDGDD), in order to continue processing the personal information of its suppliers with the maximum guarantees of respect for privacy and legal

Human rights assessed in affiliate companies without management control: [GRI 2-25, GRI S11.17.3, GRI S11.17.4]

Human rights assessed Assessment result Risk Management • General human rights • Labour • Safety • Environment • Ethics and integrity • Basic rights • Local communities 1 Low risk of violation In our business agreements we promote compliance with corporate policies (according to the degree of influence). Our management model for affiliate companies is based on the transfer of critical standards of management (see the 'Affiliates' section in this chapter), which include the necessary areas in order to guarantee respect for the following human rights: • People management • Ethics and Compliance • Health and safety • Local communities • Environment • Supply chain Likewise, these areas are evaluated as critical aspects in due diligence processes.

(1) Indigenous communities and populations have been identified in affiliates without management control in Peru, Mexico and Chile.

Human rights assessed in customers: [GRI 2-25]

Human rights assessed	Assessment result	Risk Management
Basic rights / Confidentiality of information	ow risk of violation	The Enagás Code of Ethics sets out diligent management of information as one of its guidelines of conduct. The company keeps a record of what information may be accessed by each person and for what purpose. In addition, Enagás has adapted its personal data control and management systems to the latest requirements incorporated by EU Regulation 679/2018 (GDPR) and Law 3/2018 (LOPDGDD), in order to continue processing its customers' personal information with the maximum guarantees of respect for privacy and legal compliance.

Repair procedures and mechanisms [GRI 2-25, GRI S11.15.4]

Enagás also has in place procedures for redress should there be non-compliance with any of the previously mentioned human rights, such as:

• Procedure for the management of consultations and reporting regarding irregularities or breaches of the Code of Ethics (see the 'Ethics and integrity' section in this chapter).
• Self-protection and interior emergency plans, the incident and transmission network emergency response action plan and the procedures regulating it, the accident and incident management procedure and procedure for reporting them to stakeholders (crisis manual, incident reporting, etc.). (See the 'Health and safety' and 'Natural capital and biodiversity' sections in this chapter).
• Procedure for compensation and indemnity for the passage of gas pipelines on private property (see the 'Local communities' section in this chapter).

Additionally, as mechanisms for redress, Enagás has in place an ethics channel (accessible to all stakeholders) and an Ethical Compliance Committee (see the 'Ethics and integrity' section in this chapter). There are also corporate mailboxes available for specific areas.

3.10 Affiliates

The sustainable management of affiliates is an increasingly important matter, as reflected in the materiality analysis. Proper management of, among others, environmental, social and governance matters in our value chain allows us to anticipate risks and take advantage of opportunities for long-term value creation.

Sustainable Management Plan

Main lines in 2022 2023 lines

• Review of the Corporate Defence Programme at the BBG Regasification Plant.
• Evaluation of the adequacy of existing internal controls for processing social projects, land access negotiations and emergency response plans at Transportadora de Gas del Perú.
• Internal audit to evaluate internal procedures and regulations in relation to wage and salary cycles and financial closing at the SAGGAS Regasification Plant.
• Internal audit of contract management with a specific supplier at the TLA Altamira regasification plant.

The most significant aspects of affiliate management are set out through the critical management standards and the internal audits that we carry out in our affiliates.

• Partner audit to ensure the existence of an adequate control framework for physical and logical security and a penetration test of the Distributed Control System at the BBG Regasification Plant.
• Partner audit to evaluate internal procedures and regulations in relation to cash cycles, derivatives and debt management at the SAGGAS Regasification Plant.
• Partner audit of the effectiveness of the controls identified in the Internal Control Matrix for the tax, personnel and corporate governance process cycles at Soto La Marina Compressor Station.
• Partner audit of corporate governance, health and safety, quality, environment, information technology, human resources and procurement processes at DESFA.
• Implementation of the action plan to adapt Transportadora de Gas del Perú's compliance model to the company's new processes following the integration of Compañía Operadora de Gas in Peru.
• Review of the Crisis Management Plans with a focus on security aspects at Transportadora de Gas del Perú.

Management model for affiliates [GRI 2-12, GRI 2-13]

Enagás affiliates are managed autonomously. The Shareholders' Agreements regulate, among other things, decisions that require joint decision-making by shareholders. Enagás' influence and decision-making is exercised through leadership on Boards of Directors and other governing bodies (e.g. Remuneration Committee, etc.), appointing directors with extensive experience in the sector and the country.

However, Enagás has developed a management model for these companies that seeks to guarantee compliance with the business plans and their long-term sustainability, contributing Enagás' experience, knowledge and best practices as an industrial partner, while at the same time allowing affiliates to contribute to Enagás' growth, ensuring the objectives communicated to the market.

Enagás has an internal management team in each affiliate, as well as the support of specific working groups for the corporate and business areas in their areas of expertise. In addition, Enagás guarantees the suitability of the managers of the affiliates for their positions by analysing and evaluating their profiles, as well as by appointing specialised profiles from the company to key positions in the affiliates (seconded personnel).

Critical management standards

Enagás actively manages its relations with partners and managers of affiliates in order to mitigate the risks associated with their management. In this regard, Enagás, in its ESG risk assessment, has identified risks classified according to the Enagás taxonomy as reputational, strategic and business, criminal liability and compliance and model risks (see the Risk management chapter).

The company has set out critical management standards, based on its material topics, which it extends to its affiliates according to their level of influence, and monitors them by setting out a plan of objectives for each affiliate to be implemented over a five-year horizon.

Critical management standards are transferred through working groups led by the specific managers of each affiliate, involving members of the General Management of Enagás who colead matters falling under their remit. These working groups are instrumental in aligning

Consolidated Management Report 2022

positions and ensuring the operability of the Board of Directors of the affiliate, where the decisions taken by consensus will be concluded in the groups.

Enagás has an Internal Monitoring Committee, established at the management level, which supervises the critical decisions of affiliates and reports quarterly on key matters to the Enagás Board of Directors.

Enagás has defined critical management standards based on its material topics; it requires its affiliates to comply with these standards in order to ensure that they are managed sustainably

	Financial excellence:		• Asset protection
	• Financial and cash planning and management		• Health and safety management system
	• Insurance		• Emergency plan
	• Management control		• Risk analysis
	• Taxation	Health and safety	• Health monitoring
	• Financial reporting		Cybersecurity
	• Accounting and administration		• Stakeholder management model
	Operational excellence:		• Local development actions
	• Quality management system
Financial and operational excellence	• Operational efficiency	Local communities
	• Prioritisation of assets		• Environmental management system
	• Maintenance management system		• Conducting environmental impact
	• Operation		assessments
	• Warehouse management
	• Customer service	Natural capital and biodiversity
	• Affiliate programming management	management
	• Measurement • Procedure rules		• Energy efficiency measures and
	• Board of Directors Remuneration Policy		emissions reduction
	• Company governance (agreements, working groups, etc.)
		Climate action and energy
Good Governance		efficiency
	• Code of conduct		• Human rights due diligence
	• Corporate Defence Programme
	• Whistleblowing channel
Ethics and Compliance		Human rights
	• Remuneration policy		• Contracting and reporting
	• Contractual relations and trade union rights		(procurement processes)
	• Negotiation and representation		• Suppliers approval
	• Human Resources Policy
People	• Human resource development (training and recruitment)	Supply chain
	• Workplace climate
	• Risk Map: identification and monitoring of risks
	• Internal control (general control and process control)
	• Internal audit

Other management standards

Internal control in affiliates

Enagás, together with its business partners, is conducting internal audits of its affiliates in order to verify the solidity of internal controls associated with the processes at greatest risk for fraud, corruption and bribery, and is establishing control activities to strengthen these processes wherever necessary. It also monitors the established local internal audit plans, focusing in 2023 on the most relevant issues, such as physical security, cybersecurity, local community management and procurement. The aim is to ensure that the main risks of the affiliate are covered by internal audits.

During 2022, we continued with the continuous process of complying with the audit plans approved by the different Committees to ensure maximum coverage of the processes with the highest risk. Examples include partner audits to assess the adequacy of internal control in social project processes. For example, land access negotiations and emergency response plans at Transportadora de Gas del Perú, in the wage and salary cycles and financial closure at the SAGGAS Regasification Plant and the Corporate Defence Programme at the BBG Regasification Plant.

Most significant actions carried out in our affiliates

The following is a list of the most significant actions carried out in our affiliates in 2022; all of them are aligned with the Enagás' strategy and Sustainable Management Model.

For further information on Enagás' affiliates, see their corporate websites:

USA

• Tallgrass Energy

Mexico(1)

• TLA Altamira Regasification Plant
• Soto La Marina Compressor Station

Peru

• Transportadora de Gas del Perú (TgP)

Greece, Albania and Italy

• Trans Adriatic Pipeline (TAP)

Greece

• DESFA

Spain

• SAGGAS Regasification Plant
• BBG Regasification Plant
• • Enagás Renovable

(1) Pending the closing of the sale of the Morelos Pipeline (50%).

Most significant actions in affiliates in 2022

Management standard	Actions
	• Progress in the implementation of the Cybersecurity Plan at Transportadora de Gas del Perú.
Health and safety	• Implementation of key cybersecurity initiatives at DESFA.
	• Update of the Trans Adriatic Pipeline Cybersecurity Management System.
	• Implementation of health and safety measures (blocking and tagging, working at height, work permits and reports) and cybersecurity at the TLA Altamira Regasification Plant.
	• Establishment of a Carbon Emission Reduction Plan, fugitive emissions measurement and control campaigns and adherence to OGMP 2.0 at the Trans Adriatic Pipeline.
Climate action and energy efficiency	• Preparation of diagnosis and action plan on climate action in line with the OGMP report at Transportadora de Gas del Perú.
	• Renewal of the Gold Standard classification as a member of DESFA's OGMP 2.0 initiative.
	• Approval of the Hydrogen and CO2 capture Plan, and cooperation with other actors at DESFA.
	• Preparation of a diagnostic and an associated action plan to improve reporting in the framework of the OGMP 2.0 initiative at the TLA Altamira Regasification Plant.
	• Plan for the installation of methane destruction equipment (flaring) at the TLA Altamira Regasification Plant.
Operational and financial excellence	• Implementation of measures on the progress of commissioning, operation and management of spare parts at the TLA Altamira Regasification Plant.
	• Update to the internal work regulations and the main human resources policies of Transportadora de Gas del Perú.
People	• Development of the Trans Adriatic Pipeline's diversity and inclusion policies.
	• Drawing up the Remuneration Policy and setting up the Appointments and Remuneration Committee at Enagás Renovable.
Ethics and Compliance	• Development of a Dashboard with the main Risk indicators at DESFA.
	• Addition of a Legal & Compliance Officer at the TLA Altamira Regasification Plant.
Local communities	• Improvement of the individual complaint management process at Transportadora de Gas del Perú to achieve a more agile response and improve relations with local communities.
	• Implementation of a social investment plan and a communication and community outreach strategy at the Soto La Marina Compressor Station.

3.11 Supply chain

Supply chain management is an increasingly relevant issue in the company's management, and this is reflected in the materiality analysis. Appropriate supply chain management allows us to identify and manage the risks (regulatory, operational, reputational, etc.) associated with it, and to make good use of opportunities for collaboration and value creation shared with our suppliers.

Sustainable Management Plan

Main lines in 2022 2023 lines

• Update of the supplier approval procedure.
• Supplier reliability assessment update.
• Launch of a supplier satisfaction survey with Enagás.

• Continue to externally audit our suppliers in financial, ethical, environmental and social aspects.

• Review of the company's current supplier assessment process in the areas of human rights, ethics, social and environmental issues, in line with best practices in sustainability and supply chain due diligence.

• Improved identification of critical non-direct suppliers (non-tier 1) and their sustainability risk assessment.
• Update of the long-term strategy for external audits in the financial, ethical, environmental and social fields.

1,523	1,459	96	193
approved suppliers	approved suppliers assessed regarding human rights, ethics, social and environmental matters	approved suppliers audited externally in financial, ethical, environmental and social aspects in the last two years	approved suppliers evaluated for climate action in the last two years

Our supply chain [GRI 2-6]

In order to work with Enagás, suppliers must undergo a strict approval process. The company currently works with 1,523 approved suppliers (1,526 in 2021), which are classified in families according to the products or services they offer:

• Suppliers of works and services: IT & communication suppliers, engineering, etc. In 2022, 2,820 persons belonging to 529 service providers carried out work at Enagás facilities (in 2021, 2,942 persons belonging to 484 service providers). [GRI 2-8]
• Suppliers of supplies: electrical equipment suppliers, piping manufacturers, rotary machine manufacturers, manufacturers of instrumentation and control devices, among others.

Critical suppliers are considered to be those belonging to families of products or services whose failure or malfunction would have a high economic impact, or those that are of high criticality for the business (critical components or services) that have a low number of suppliers (difficulty of substitution). Enagás has 233 approved critical suppliers (236 in 2021), which means that 15.3% of its approved suppliers are critical (15.5% in 2021).

In 2022, work began with 92 new suppliers (79 in 2021), of which 100% have undergone an approval process and meet the established social and environmental criteria. The company has also stopped working with 53 suppliers (3 in 2021) for not complying with Enagás' approval criteria. In no cases were these in relation to social or environmental criteria55. [GRI 308-1, GRI 308-2, GRI 414-1, GRI 414-2]

90% of the amount of expenditure in our supply chain is local in nature [GRI -204-1]

Supply chain cost analysis [GRI 203-2, GRI 204-1] 56
------------------------------------------------------	--

	Supplier category	Geographical distribution
Indicator		Domestic	International	Total
		2021
	Works and	3,845	121	3,966
Number of	i Supplies	6,542	80	6,622
orders	Total	10,387	201	10,588
Number of	Works and	1,017	91	1,108
contracted	i Supplies	1,126	43	1,169
suppliers	Total	2,143	134	2,277
Order value (million euros)	Works and	105.2	20.1	125.3
	i Supplies	95.5	25.3	120.8
	Total	200.7	45.4	246.1
2022
	Works and	5,292	166	5,458
Number of orders	i Supplies	7,837	100	7,937
	Total	13,129	266	13,395
Number of	Works and	1,295	109	1,404
contracted suppliers	i Supplies	1,405	42	1,447
	Total	2,700	151	2,851
	Works and	178.5	14.9	193.4
Order value	i Supplies	39.5	9.9	49.4
(million euros)	Total	218.0	24.8	242.8

In 2022, a satisfaction survey was launched for the first time with the main approved suppliers who have received an order or contract in the last three years. The main results were a positive NPS (Net Promoter Score), that suppliers were satisfied with the different purchasing processes and that they considered transparency to be one of the strong points of the Enagás purchasing process. [GRI 2-29]

⁵⁶ Local purchases are considered to be purchases made domestically in Spain.

⁵⁵ Of the suppliers identified as having significant negative environmental and/or social impacts, no relationships with the same have been terminated as a result of social or environmental criteria (0%).

Supply chain risk management

Enagás has identified the areas of supply chain management in which there may be risks to the business and to our stakeholders (risks identified in its ESG risk assessment, classified according to Enagás' taxonomy as reputational, strategic and business, criminal liability, compliance and model, and operational and technological (see the 'Risk management' chapter). These areas, which cover both economic, ethical, environmental and social aspects, form the basis for the assessments we perform on our suppliers in the different procurement processes. The areas analysed are: [GRI 308-2, GRI 414-2]

• Product and/or service quality.
• Financial situation, civil liability, economic dependence on Enagás.
• Health and safety.
• Ethics and compliance: criminal risks, ethical compliance, legal compliance, responsible tax practice.
• Human rights: labour rights (diversity, work-life balance, gender equality), respect for the principles of the United Nations Global Compact and the Universal Declaration of Human Rights, human rights compliance in the supply chain (see the 'Human rights' section).
• Environment: emission intensity, environmental impact (resource consumption, waste generation, noise emissions, gas emissions, etc.), environmental safety (discharges, spills, pollution, etc.).

Enagás has a supplier management model that considers the company's goals in order to guarantee supply chain sustainability. These goals are translated into approval requirements depending on the level of risk in the economic, ethical, compliance, social and environmental aspects of the family of products and services to which each supplier belongs.

The requirements established in the supplier approval process are:

• For all suppliers:
• Capacity and resources to meet the quality, ethics and compliance, financial, labour, environmental, safety and technical requirements established by Enagás; as well as the long-term maintenance of these requirements within the satisfactory levels defined by Enagás.
• Acceptance of the Enagás Code of Ethics.

The company's Code of Ethics establishes Enagás' ethical culture and is applicable in its corresponding areas of relation with the company, for contractors, suppliers and for those who collaborate with Enagás or act on its behalf. This Code incorporates guidelines for behaviour in the areas of integrity, transparency, safety, respect for people and diversity, and the environment, among others.

All Enagás suppliers and contractors are bound by the Code and expressly confirm their commitment to be familiar with it, comply with it and enforce it through acceptance of the general contracting conditions.

See the Ethical Principles and Guidelines for Suppliers on the corporate website

• Respect the principles of the United Nations Global Compact and the Universal Declaration of Human Rights.
• Compliance with the quotas set out in the Spanish Rights of Persons with Disabilities Act57.

◦ Implementation of a Gender Equality Plan57.

• For suppliers of specific families of products or services:
• Quality, environmental and/or occupational risk prevention certification requirements for suppliers (required from 60.4%, 20.0% and 24.0% of Enagás suppliers, respectively).
• Policies or measures to promote work-life balance of employees or Family-Responsible Company certificate.

During the execution of the contract, Enagás evaluates its suppliers in the aforementioned areas through different evaluation methodologies, considering criteria such as criticality, ESG (environmental, social and governance) risks and turnover, among others.

The results of these assessments allow monitoring of the degree by which suppliers meet the target scores, audit results and legal compliance established for each assessment area, and to identify suppliers that pose a high risk to sustainability or with significant social or environmental impacts (risks related mainly to the management of it value chain, health and safety, equality and waste management). For the latter providers with potential or real risk or impact, action plans are set out to mitigate and monitor such risks. In case of noncompliance with certain ESG criteria, a period of 12 months is provided to implement corrective actions, after which they lose their approved status until such time as they pass the approval procedure again.

The Executive Committee is the body with the highest level of responsibility for sustainable supply chain management.

[GRI 308-2, GRI 414-2]

Enagás evaluates its suppliers in environmental, social, ethical and human rights matters using different methodologies

⁵⁷ Requisite set for companies with a workforce greater than that indicated by the applicable laws.

Supplier assessments

Methodology and areas of evaluation		Number of suppliers assessed [GRI 308-2, GRI 414-2]			Number of suppliers identified as high risk
				Definition of high risk	[GRI 308-2, GRI 414-2]
		2021	2022		2021	2022
	Evaluation in the areas of human rights, ethics, social matters and the environment (2) (systematic assessment with review of	1,250	1,459	Suppliers with a score less than 30/100	30	237
Internal assessment	Evaluation on climate action (1) (2) (systematic assessment with review of documentation)	181	193	Suppliers that do not measure or report their emissions	109	98
	Documentary and on-site safety audits carried out by company professionals or external consultants on suppliers carrying out work at company facilities (1)	102	118	Suppliers with unfavourable audits	27	21
	Reliability assessment (1) (systematic assessment with review of documentation)	117	101	Suppliers with a score less than 50/100	27	15
	On-site environmental audits carried out by company professionals or external consultants at construction sites (1) (2)	3	3	Suppliers with non-conformities	1	1
External assessment (by an independent third party)	Consultation on human rights, ethics and compliance on reputational analysis platforms (3)	1,566	1,959	Suppliers involved in legal violations	67	121
	On-site audits on financial, ethical, environmental and social aspects (1) (2)	127	96	Suppliers with non-conformities	64	48
	Cybersecurity scoring	662	701	Suppliers with high or very high risk of non-compliance and/or financial losses	130	133
	Financial, reputational, ethical, environmental and social assessment (2)	668	713	Suppliers with a score less than 50/100	126	146

(1) The results of the assessments are considered to have a validity of two years.

(2) For 100% of the assessed suppliers identified as high ESG risk, action plans have been established to mitigate this. [GRI 308-2, GRI 414-2]

(3) This assessment also includes non-approved suppliers that are in the process of being approved and suppliers that have been stripped of approval.

4. Risk management

Enagás risk model

[GRI 201-2]

Enagás has established a risk control and management model aimed at ensuring the achievement of the objectives of the company in a predictable manner and with a mediummoderate profile for all of its risks. This model is perfect for adapting to the complexity of a globalised competitive environment and a complex economic backdrop. This model is based on five aspects:

1. The consideration of a risk taxonomy, which sets out standard typologies of risks according to their nature. The taxonomy comprises the following categories: Strategic and Business, Operational and Technological, Financial and Tax and Credit and Counterparty. There are other cross-domain types of risk: Reputational, Compliance and Criminal Liability.

The Enagás Group is also exposed to cross-domain risks that do not correspond to a single risk category, but rather may be correlated with multiple. These are the risks related to the three ESG pillars of sustainability: environmental, social and governance.

The taxonomy defined is taken as a reference point for the identification of the risk inventory to which society is exposed. It should also be noted that the methodologies used for risk measurement differ depending on each type.

• 1. The segregation and independence of the functions of risk control and management at the company, in three 'lines of defence':
  2. On the one hand, the business units that are responsible for the risks they take on when conducting their ordinary business activities, and are therefore responsible for identifying and measuring them.
  3. Moreover, there is a risk control and management area responsible for: (i) ensuring that the risk control and management system functions properly, (ii) active participation in the development of the risk strategy and definitions of impacts on their management, and iii) ensuring that the control and management systems adequately mitigate risks.
  4. Lastly the internal audit function is responsible for monitoring the efficiency of controls in relation to identified risks.

Internal risk control and management framework

	1st line of defence - Business units	2nd line of defence - Risk area	3rd line of defence - Internal audit
Governa nce		Define the regulatory framework and governance.
Risk profile	Identify the risks they assume in their ordinary activity.	Define a taxonomy of risks and advise the business units on identifying risks.
	Assess and measure risks following the established measurement methodologies.	Establish the risk measurement methodologies and the risk consolidation and reporting system.
		Validate the measurements made by the business units.
	Define risk control and management measures.	Ensure that management controls and measures are aligned with the company's strategy.	Verify and monitor the risk function and established control activities.
	Define actions to correct failure to comply with risk limits.	Provide a global and homogeneous vision of risks, reporting to Senior Management and Governing Bodies.
Risk appetite		Inform the Governing Bodies of the risk appetite and its associated limit structure.
		Validate measures and strategies for correcting any non-compliance.

Enagás is also exposed to risks of a cross-domain nature, which are risks related to the three ESG sustainability pillars

1. The existence of certain governing bodies with responsibilities in the process of risk control and management in the company: [GRI 2-12, GRI 2-13]

Governing Bodies

Board of Directors

The Board of Directors is responsible for approving the Risk Control and Management Policy. Other responsibilities with respect to risks are delegated in the Audit and Compliance Committee.

Audit and Compliance Committee

The Audit and Compliance Committee mainly monitors the efficiency of the risk control and management systems and evaluates the risks to the company (identification, measurement and establishment of measures for their management).

Executive Committee

The Executive Committee establishes the overall strategy for risks, the limits of global risk for the company, and reviews the level of exposure to risk and the corrective actions, should there be any non-compliance.

• 1. Establishing a risk appetite framework which defines the risk levels considered acceptable and that is in line with established business objectives and the market environment in which the company's activities are carried out.
• 1. The transparency of information supplied to third parties, to guarantee its reliability and accuracy.

See the Risk Control and Management Policy on the corporate website.

The Model complies with international best practice standards in terms of risk control and management, primarily referring to ISO 31000 Risk Management Standard and 2nd COSO Report58: ERM (Enterprise Risks Management). It is also fully aligned with the national regulatory framework in this area (requirements of the Spanish Corporate Enterprises Act and the recommendations of the CNMV's Good Governance Code of Listed Companies and Technical Guide 3/2017 on Audit Committees for Public Interest Entities).

This risk model includes a comprehensive analysis and regular monitoring of all risks to which the company is exposed, enabling them to be adequately controlled and managed. The risk identification and assessment process include the following sub-processes:

Risk monitoring

Corporate risks are continuously monitored through different channels and a wide variety of reports. Substantial changes in risk are promptly communicated to decision-makers.

Risk identification	 Risk assessment	Risk Control and  Mitigation Measures
• Identification of those risks to which the company is exposed in the ordinary course of business on a continuous and systematic basis. • Risks are classified according to the risk taxonomy set out by	• Qualitative and quantitative assessment of the level of each of the risks identified in the risk inventory; potential negative impacts are calculated and the probability that they will manifest within a given time	• Required control and management activities are designed for each risk according to the risk management strategy that has been set out. • These activities are based on:
the company.	horizon is estimated.	◦ The nature of the risks.
• The risk inventory is dynamic and is conditioned by changes in the corporate environment; this is due to the strategic	• Different methodologies are used to measure risk, taking into account the characteristics of each risk and the	◦ The agreed risk strategy: assume the risk, transfer it to a third party, mitigate it or eliminate it, as appropriate.
approach taken for the performance of ordinary	information available. This allows risk	◦ Business operating plans.

The impact of risks is assessed in the different dimensions indicated below, including ESG aspects, so that risk levels are determined from the perspective of dual materiality, impact on the company's value and impact on the environment (environmental, security, reputational and social):

scenarios to be built.

• Economic: evaluation according to impact on company results.

activities.

• Health and safety: assessment according to severity of incidents.
• Reputational: assessment according to the impact on stakeholder expectations.
• Security of supply: assessment according to the degree to which the gas system is affected and the time for which infrastructure is unavailable. [GRI 201-2]

⁵⁸ Committee of Sponsoring Organizations of the Treadway Commission.

• Environment: depending on the type of environmental impact (biodiversity or emissions), assessment according to the level of environmental damage and impact on protected areas, the energy efficiency indicator, and/or the volume of methane emissions.

The existing model is completed by carrying out specific risk analyses that facilitate the decision-making process based on risk-profitability criteria in those strategic Enagás Group initiatives, new businesses or initiatives of special relevance. Risk Control carries out this analysis on an independent, transversal (covering all types of risks) and homogeneous basis (following the same methodologies as in the global risk measurement).

The Risk Map includes the main risks to which the Enagás Group is exposed, including those associated with climate change

The Enagás risk map is shown below, detailing the risks to which the Enagás Group is exposed, represented in aggregate (in accordance with level 2 of the company's risk taxonomy).

This map includes aggregate Sustainability (ESG) risks, defined as the effects of noncompliance with commitments and objectives in the company's material topics. Enagás has identified and assessed these risks based on the company's materiality analysis (see the 'Materiality analysis and stakeholder management' section in the 'Environmental, Social and Governance (ESG) Management' chapter). The result is risks with ESG factors or impacts for each of the material topics. Details of those arising from the material topics of Climate Action and Natural Capital are published in this report (see the 'Climate action and energy efficiency' and 'Natural capital and biodiversity management' sections of the 'Environmental, Social and Governance (ESG) Management' chapter, respectively). The typology of risks identified in the areas of human rights, supply chain and affiliates is also indicated (see the 'Human rights', 'Supply chain' and 'Affiliates' sections in the 'Environmental, social and governance (ESG) management' chapter).

The main emerging long-term risks are also represented; these relate to uncertainty about the "role of natural gas in the future energy mix", the "development of growth projects (Enagás Strategic Plan)", the "deployment of hydrogen technology" and the "worsening of the company's financing conditions". These risks are due, among other factors, to climate change.

[GRI 201-2]

Corporate Risk Map

[GRI 201-2]

Detail of the main risks [GRI 201-2]

Type of risk	Risk description	Risk level (1)	Control and management measures
STRATEGIC AND BUSINESS RISKS
1. Role of natural gas in the future energy mix (long-term effect)	• The policies and regulatory measures for decarbonising the energy models of the countries where the Enagás Group operates introduce uncertainty regarding the role of natural gas in the future energy mix in the medium and long term.	Significant	• The company is actively working to mitigate this risk by encouraging new uses where natural gas contributes significantly to decarbonisation: marine, rail and heavy road transport.
			• In addition, the company is committed to renewable gases (biomethane and hydrogen) to move towards carbon neutrality and decarbonise sectors that are difficult to electrify, such as transport or high-temperature industry and energy storage.
			See the 'Our commitment to the energy transition' chapter.
2. Growth projects (Enagás Strategic Plan) (long-term effect)	• The delay of or failure to execute the growth projects foreseen in the medium and long term in the Strategic Plan could have a negative impact on the company's results and on its commitments to its shareholders.	Significant	• Continuous monitoring is carried out for the portfolio of investment opportunities and project execution.
			• Work teams search for new opportunities in order to meet established objectives.
			See the 'Our commitment to the energy transition' chapter.
3. Deployment of hydrogen technology (long-term effect)	• Achieving the necessary technology deployment could be compromised in the event that the market is able to prioritise other energies.	Tolerable	• Agreement between the Spanish, French, Portuguese and German governments to create the future H2Med hydrogen corridor.
			• Joint Ventures for technological development and the promotion of renewable hydrogen production and transmission infrastructures.
			• Projects under consideration are focused on the methanisation of hydrogen for its injection into the network, use in mobility and application in auxiliary machinery.
			• Research and development of salt caverns for underground storage.
4. Global environment	• A higher-than-expected increase in inflation can lead to cost variances.	Acceptable	• Efforts are being made within the company to minimise this effect through greater control and cost containment.
5. Sustainability (ESG)	• Effects of non-compliance with commitments and targets on the company's material topics: decarbonisation, environmental impact, human rights, discrimination/diversity/vulnerability, loss of talent/lack of human capital, health and safety, and non-compliance with governance principles.	Tolerable	• Health and safety, environmental and quality policy, the principles of which are embodied in the Enagás Environmental Management System, certified in accordance with ISO 14001 and EMAS.
			• Sustainable Management Plan with lines of action in the field of natural capital and biodiversity management.
			• Presence in the S&P Global's sustainability rankings, the Dow Jones Sustainability Index and other sustainability indices.
			• Compliance, Sustainability and Good Governance policies that establish the general principles governing the company's management in this area, as well as a specific area in the company to manage diversity and inclusion.
			See the 'Health and safety' and 'Natural capital and biodiversity management' sections in the 'Environmental, social and governance (ESG) management' chapter.

(1) The risk map represents the residual risk, i.e. the risk considering the effectiveness of the established management and control measures (risk transfer to insurance companies or mitigation measures). Level of Risk: Acceptable / Tolerable / Significant / Critical.

Type of risk	Risk description	Risk level (1)	Control and management measures
6. Regulatory and remuneration	• Admissibility of CAPEX investment costs, adjustment of CAPEX and OPEX standards for inflation.	Tolerable	• Promotion of the use of natural gas and dissemination of analyses of the economic and financial sustainability of the system.
			• Ongoing relationship with regulatory bodies and Public Administrations.
			• Active participation in the development of proposals for regulatory development and the consultation phase.
7. Legal risks	• The company's results may be affected by the outcomes of administrative or legal actions and proceedings in which it is	Significant	• Management and follow-up of existing situations in legal proceedings and/or with the relevant administrative authorities.
	involved, as well as by the uncertainties that arise from differing interpretations of contracts, laws or regulations that the company and third parties may have.		• Hiring specialised legal counsel for the process.
	• Effects on Enagás' income statement arising from the resolution of arbitration, criminal and legal proceedings, and/or the evolution of its business plans and growth projects.
8. Affiliates – International business	• Effects on Enagás' income statement derived from the evolution of its business plans and growth projects.	Significant	• Follow-up and monitoring of the evolution of the business, the portfolio of opportunities and the project execution at the different companies.
OPERATIONAL AND TECHNOLOGICAL RISKS
9. Industrial risks in infrastructure operation	• In the operation of the infrastructure for transmission, regasification plants and underground storage facilities, accidents, damage or incidents involving loss of value or lost profits may occur.	Acceptable	• Emergency, maintenance and continuous improvement plans, the existence of control systems and alarms that guarantee service continuity and quality.
			• Quality, prevention and environmental certifications and redundancy of equipment and systems.
			• Insurance policy contracts.
			See the 'Financial and operational excellence', 'Health and safety' and 'Natural capital and biodiversity' sections of the 'Environmental, social and governance (ESG) management' chapter.
10. Cybersecurity	• Damage to corporate and industrial systems as a result of attacks by third parties.	Tolerable	• Cybersecurity Master Plan with specific action measures.
(industrial and corporate systems)			• Good relative position in the sector in terms of cyberattack mitigation and control measures.
			• Cybersecurity Committee and quarterly report to the Audit and Compliance Committee on actions taken to mitigate risk.
			• Definition of BIA (Business Impact Analysis) to respond to different cyberattack scenarios.
			See the 'Health and safety' section of the 'Environmental, social and governance management (ESG)' chapter.

[GRI 201-2]

(1) The risk map represents the residual risk, i.e. the risk considering the effectiveness of the established management and control measures (risk transfer to insurance companies or mitigation measures). Level of Risk: Acceptable / Tolerable / Significant / Critical.

Type of risk	Risk description	Risk level (1)	Control and management measures
11. Non-availability of gas at source	• Interruption of supply in the Spanish Gas System due to non availability of gas at source (sabotage, geopolitical decisions, among others).	Tolerable	• Establishment of a preventive action plan for the Spanish gas system to prevent its materialisation (investment in new gas infrastructures, flexibility of entry points, organised market, etc.).
12. Suppliers and Counterparties	• Contractual disputes, poor quality of services or information received, non-compliance with sustainability criteria and delays in administrative decisions.	Acceptable	• Process and regulations and internal procedures for purchasing and supplier approval. • Reputational analysis and ESG assessments of suppliers.
			• Close and continued relationship with stakeholders.
13. Unintentional	• Non-industrial (invoicing, formalisation of contracts, legal and/or	Acceptable	• Processes with specific validation and monitoring controls.
failures or errors in	administrative formalities, etc.).		• External and internal audits.
corporate processes			• Internal policies, standards, training and procedures.
			• Automation of processes and updating and review of systems.
FINANCIAL AND FISCAL RISKS
14. Worsening of the company's financing	• The push for sustainable finance by regulators and investors (EU	Tolerable	• Development of renewable gas projects aligned with the EU Taxonomy and the ESG requirements of regulators and investors.
conditions (long-term	taxonomy, EIB investment policy, European Green Deal, and other similar measures) could affect the company's financing		• Assessment of alternative financing models.
effect) (long-term effect)	conditions in the medium and long term.		See the 'Sustainable financing' section in the 'Our commitment to the energy transition' chapter.
15. Financial risks	• Volatility of interest and exchange rates, as well as movements in	Tolerable	• Hedging through derivative contracts to establish an optimal debt structure.
(interest rate,	other financial variables that could negatively affect the company's liquidity.		• Natural hedging through financing in the business's functional currency.
exchange rate and liquidity)			• Taking out credit lines with unconditional availability and temporary financial investments.
			See the 'Financial and operational excellence' section of the 'Environmental, social and governance (ESG) management' chapter.
16. Tax risks	• Possible changes to tax legislation that could affect the	Tolerable	• Consultancy services provided by tax specialists.
[GRI 207-2]	company's results. • Possible differences in interpretation of the tax legislation in force		• Monitoring of Principles of action that govern compliance with tax obligations, avoiding risks and tax inefficiencies.
	in the countries in which the Group is present that may diverge from the criteria held by Enagás and its tax advisors. Possible defects of form.		See the 'Ethics and integrity' and 'Financial and operational excellence sections of the 'Environmental, social and governance (ESG) management'
REPUTATIONAL RISKS			chapter
17. Direct reputational	• Possible deterioration of the perception or image of the Enagás	Tolerable	• Fluent, direct communication with stakeholders.
risks	Group from the different stakeholders.		• Permanent monitoring of information published in the media and social networks.
			• Internal communication regulations.
			See the 'Materiality analysis and stakeholder management' and 'Sustainable management model' sections of the 'Environmental, social and governance (ESG) management' chapter.

[GRI 201-2]

(1) The risk map represents the residual risk, i.e. the risk considering the effectiveness of the established management and control measures (risk transfer to insurance companies or mitigation measures). Level of Risk: Acceptable / Tolerable / Significant / Critical.

Type of risk	Risk description	Risk level (1)	Control and management measures
COMPLIANCE RISKS AND MODEL
18. Compliance risk	• Non-compliance with external regulations (sanctions), fraud, corruption and anti-trust.	Tolerable	• Internal policies and procedures relating to the Code of Ethics, Asset Security, Compliance, etc.
			• Continuous monitoring of new rules/regulations.
			See the 'Ethics and integrity' section of the 'Environmental, social and governance (ESG) management' chapter.
CRIMINAL LIABILITY RISK
19. Criminal liability risk	• Offences set out in the Spanish Criminal Code that may be committed by persons related to Enagás which entail criminal liability for the company.	Tolerable	• Corporate Defence Programme. • Internal policies, rules and procedures from different areas of the company. • Code of conduct and code of ethics. See the 'Ethics and integrity' section of the 'Environmental, social and governance (ESG) management' chapter.

[GRI 201-2]

Credit and Counterparty Risks: In application of IFRS 9 since January 2018, a provision has been made for the expected loss from this type of risk.

(1) The risk map represents the residual risk, i.e. the risk considering the effectiveness of the established management and control measures (risk transfer to insurance companies or mitigation measures). Level of Risk: Acceptable / Tolerable / Significant / Critical.

All the risks arising from climate change are explained in detail in the 'Climate action and energy efficiency' section of the 'Environmental, Social and Governance (ESG) Management' chapter, in line with the recommendations of the TCFD. [GRI 201-2]

5. Key indicators

Economic indicators

Economic performance and cost efficiency

	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
EBITDA (million euros)(1)	596.0	636.2	701.3	780.8	885.5	934.3	995.9	939.8	900.5	948.8	1,110.3	1,060.7	994.8	942.9	895.3	797.4
EBIT (million euros)(1)	408.3	433.1	484.7	530.9	585.9	618.4	649.8	589.6	602.0	651.7	732.1	691.0	657.4	614.6	583.4	478.2
BDI (million euros)(2)	238.3	258.9	298.0	333.5	364.6	379.5	403.2	406.5	412.7	417.2	490.8	442.6	422.6	444.0	403.8	375.8
Dividends (million euros)(2) (3)	143.0	155.3	178.8	200.1	237.0	265.7	302.4	310.4	315.1	331.4	348.1	354.8	371.3	426.7	441.4	450.0
Net investment (million euros)(2)	508.6	776.9	901.6	796.3	781.4	761.4	531.4	625.0	530.2	912.2	328.5	-262.8	706.2	859.2	59.7	-548.6(6)
Net debt (million euros)(2)	1,942.7	2,351.3	2,904.0	3,175.3	3,442.6	3,598.6	3,772.7	4,059.1	4,237.0	5,088.7	5,007.7	4,274.7	3,755.0	4,287.7	4,276.8	3,468.9
Shareholders' equity (million euros)(2)	1,344.8	1,456.1	1,593.4	1,738.8	1,867.4	2,014.9	2,118.4	2,218.5	2,318.9	2,373.7	2,585.6	2,658.7	3,170.1	3,192.7	3,158.4	3,076.5
Assets (million euros)(2)	3,976.0	4,717.8	5,779.9	6,829.1	7,717.4	8,083.4	7,043.5	7,711.8	7,751.9	9,248.0	9,649.6	9,526.2	8,844.2	9,008.9	9,873.8	9,398.6
Net debt/EBITDA (adjusted)(1) (4)	3.3x	3.7x	4.1x	4.1x	3.9x	3.8x	3.7x	4.2x	4.5x	5.2x	4.4x	4.0x	3.9x	4.8x	5.1x	4.8x
Financial cost of debt(2)	4.3%	4.7%	3.3%	2.7%	2.8%	2.5%	3.0%	3.2%	2.7%	2.4%	2.2%	2.3%	2.1%	1.9%	1.7%	1.8%
Headcount (December 31)(5)	985	1,008	1,046	1,047	1,126	1,178	1,149	1,206	1,337	1,337	1,307	1,320	1,306	1,330	1,344	1,365

(1) These figures are included in the Alternative Performance Measures Report, available at https://www.enagas.es/en/investor-relations/financial-information/alternative-performance-measures-apm/

(2) Figures reported in the Notes to the Consolidated Annual Accounts of the Enagás Group for each financial year.

(3) The figures reflect total dividends for the year (interim dividend + complementary dividend).

(4) EBITDA adjusted by dividends received from affiliates.

(5) In order to facilitate data comparability, the "number of employees" indicator for 2017 and 2018 has been recalculated excluding the GNL Quintero regasification plant (Chile).

(6) Result of 698.8 million euros of divestments and 150.2 million euros of investments.

Stock market performance

	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Share price (31 Dec) (€)	20.0	15.6	15.4	14.9	14.3	16.1	19.0	26.2	26.0	24.1	23.9	23.6	22.7	18.0	20.4	15.5
Dividend (€)	0.6	0.7	0.8	0.8	1.0	1.1	1.3	1.3	1.3	1.4	1.5	1.5	1.6	1.7	1.7	1.7 (1)
Market capitalisation (million euros)	4,771.6	3,714.7	3,682.5	3,560.7	3,411.0	3,852.6	4,534.8	6,251.3	6,207.1	5,759.4	5,698.6	5,636.5	5,967.7	4,706.7	5,344.6	4,067.5
Number of shares (million)	238.7	238.7	238.7	238.7	238.7	238.7	238.7	238.7	238.7	238.7	238.7	238.7	262.0	262.0	262.0	262.0

(1) Distribution of the 2022 gross dividend of 1.72 euros per share is subject to approval at the General Shareholders' Meeting.

Economic value generated and distributed [GRI 201-1]

	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Economic value generated (EVG) (millions of euros)	901.5	1,000.8	1,154.8	1,199.3	1,261.9	1,227.2	1,221.6	1,218.3	1,384.6	1,342.2	1,182.7	1,084.0	991.2	970.3
Economic value distributed (EVD) (millions of euros)	565.7	617.5	727.6	769.2	845.4	801.5	862.0	894.0	942.7	969.7	926.3	916.1	975.7	924.2
Suppliers	137.2	147.3	193.1	168.1	184.6	198.3	193.4	203.9	209.6	229.8	184.4	176.3	167.5	220.6
Society (tax and social action investment)	127.7	144.3	164.9	179.8	172.2	102.6	166.3	136.3	144.8	138.8	128.0	118.7	113.3	165.0
Investment in social action	0.8	1.3	2.2	1.6	1.6	1.6	1.9	2.2	2.0	2.0	2.0	3.9	1.8	1.9
Tax	126.9	143.0	162.6	178.2	170.6	101.0	164.4	134.1	142.8	136.8	126.0	114.8	111.4	163.1
Employees (personnel expenses)	60.7	67.2	67.0	79.0	82.3	84.7	96.3	108.8	128.9	131.2	125.2	126.7	129.7	140.4
Capital providers	240.0	258.7	302.6	342.4	406.3	415.9	406.0	445.1	459.5	469.8	488.7	494.4	524.8	398.2
Dividends paid to shareholders	178.8	200.1	237.0	265.7	302.4	310.4	315.1	331.7	348.6	365.3	371.3	426.7	441.4	446.4
Financial result	61.2	58.6	65.6	76.7	103.9	105.5	90.9	113.4	110.9	104.6	117.4	67.7	83.4	-48.2
Economic value retained (EVR) (millions of euros)	335.9	383.3	427.2	430.1	416.5	425.7	359.6	324.3	441.9	372.5	256.4	167.9	55.8	46.1

Financial and non-financial ratings

	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Standard & Poor's	AA-	AA-	AA-	AA-	AA-	BBB	BBB	BBB	A-	A-	A-	A-	BBB+	BBB+	BBB+	BBB
Fitch	A2	A2	A2	A2	A2	A-	A-	A-	A-	A-	A-	A-	A-	BBB+	BBB+	BBB
Dow Jones Sustainability Index (1)	67	77	75	78	88	83	85	84	85	91	86	85	85	87	85	88
CDP Climate change (transparency / performance)	-	-	-	70/B	83/B	85/B	83/B	91/B	99/B	A	A-	B	A	A	A	B

(1) Enagás has been a member of the Dow Jones Sustainability Index since 2008.

Social indicators

Corporate Governance

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Number of Directors	15	13	15	15	13	13	13	13	13	16	15	15
Independent Directors (%)	53.3%	61.5%	60.0%	60.0%	62.0%	62.0%	54.0%	54.0%	62.0%	69.0%	73.3%	66.7%
Board gender diversity (%)	13.4%	15.4%	20.0%	20.0%	23.0%	23.0%	23.0%	23.0%	31.0%	25.0%	33.3%	40.0%
Non-Audit Fees (%)	27.0%	14.0%	3.0%	3.0%	4.0%	53.0%	18.0%	36.0%	34.0%	39.0%	33.0%	31.0%
General Shareholders' Meeting quorum (%)	57.0%	55.8%	53.1%	52.9%	54.8%	50.8%	45.6%	45.6%	51.0%	48.2%	49.0%	46.3%

Supply chain

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Approved suppliers (no.)	1,989	2,010	1,875	1,745	1,781	1,800	1,356	1,382	1,458	1,483	1,526	1,523
Critical/approved suppliers (%) (1)	52.1%	51.8%	54.4%	59.1%	59%	59%	69.5%	65.3%	58.3%	61.3%	15.5%	15.3%
Suppliers audited externally in financial, ethical, environmental and social aspects (No.)	-	31	51	61	33	39	55	95	129	149	127	96
Percentage of approved suppliers assessed in human rights, ethics, social and environmental aspects (%) (2)	-	-	25.1%	27.1%	26.6%	27.1%	52.4%	53.5%	65.1%	70.3%	81.9%	95.8%

(1) In 2021, Enagás updated its criteria for classifying a supplier as critical, so the values are not comparable with previous years.

(2) From 2011 to 2018, reference is made to the external assessment carried out by Enagás and from 2019 onwards to the internal assessment carried out by the company.

Ethical compliance and human rights

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Whistleblowing notifications (Ethics Channel) (No.)	-	2	2	4	4	3	2	5	1	5	7	3
People trained in issues related to ethical compliance (cumulative figure) (No.)			128	200	1,217	1,214	1,206	1,228	1,223	1,260	1,302	1,335

Human capital [GRI 2-7]

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Employees (No.)	1,126	1,118	1,149	1,206	1,337	1,337	1,307	1,320	1,306	1,330	1,344	1,365
Voluntary employee turnover (%)	0.8%	0.5%	0.5%	0.7%	0.5%	0.6%	1.4%	1.3%	1.3%	1.4%	1.2%	1.7%
Absenteeism (%)	3.7%	2.3%	2.5%	2.5%	2.5%	2.9%	3.1%	3.3%	3.6%	3.4%	2.7%	3.6%
Workforce gender diversity (%)	22.5%	22.5%	22.8%	23.9%	26.8%	27.5%	27.2%	27.7%	28.1%	28.6%	28.9%	30.0%
Board gender diversity (%)	14.1%	15.9%	18.8%	20.0%	25.4%	24.8%	26.8%	27.2%	29.0%	29.9%	30.6%	36.4%
Average investment in training per employee (€)	956	898	1,192	1,041	894	920	1,071	1,162	1,091	818	874	1,239
Training per employee (hrs)	48.9	45.8	52.0	59.6	49.8	61.8	65.6	61.6	51.9	46.6	45.1	55.1

Customer satisfaction

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Rate of satisfaction of shippers with transmission	80%	82.5%	83%	82.2%	82.7%	84.3%	85.7%	89.4%	87.8%	88.3%	89.9%	87.5%
Rate of satisfaction of transmission companies and distributors with transmission	76.7%	78.3%	79%	77.1%	89.2%	84.7%	85.0%	81.2%	79.5%	85.6%	93.5%	83.3%
Rate of satisfaction of shippers with the technical management of the Spanish Gas System	76.7%	83.5%	80.5%	78.6%	78.3%	86.2%	83.9%	90.1%	84.8%	84.8%(1)	83.0%	83.9%
Rate of satisfaction of transmission companies and distributors with the technical management of the Spanish Gas System	76.7%	78.7%	81.2%	72.6%	83.3%	79.2%	82.3%	89.4%	90.0%	90.0%(1)	96.0%	85.7%

(1) Data from the customer satisfaction survey sent out in December 2019.

Occupational health and safety [GRI 403-9]

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Lost time injury frequency rate (own workforce) (1)	7.5	9.0	5.3	4.7	3.9	1.8	7.8	2.3	5.1	3.7	3.2	1.4
Lost time injury frequency rate (contractors) (1)	7.1	6.4	9.3	3.0	2.3	10.4	0.5	1.1	3.2	5.4	2.0	2.7
Lost time injury severity rate (own workforce) (1)	0.1	0.4	0.3	0.5	0.1	0.1	0.4	0.1	0.1	0.1	0.1	0.0
Lost time injury severity rate (contractor workforce) (1)	0.2	0.3	0.4	0.1	0.1	0.1	0.0	0.0	0.1	0.2	0.1	0.1
Work-related fatalities of own workforce (No.)	0	0	0	0	0	0	0	0	0	0	0	0
Work-related fatalities of contractor workforce (No.)	0	0	0	0	0	0	0	0	0	0	1	1

(1) From 2022, in order to improve the comparability of data, Enagás will align its accident recording criteria with those of the Occupational Safety and Health Administration (OSHA), considering the concept of activity-relatedness as a determining factor in its recordability.

Impact on local communities

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Social action investment/net profit (%)	0.6%	0.4%	0.4%	0.4%	0.5%	0.5%	0.4%	0.5%	0.5%	0.9%	0.5%	0.5%
Participation of employees in corporate volunteering initiatives (% of workforce)		5%	8.5%	9%	15.1%	16.7%	26.9%	27.5%	25.0%	21.6%	12.6%	32.1%
Time spent on volunteer work (hrs)		400	640	866	1,404	1,475	2,395	2,430	2,483	625	403	2,210

Environmental indicators

Environmental management and fighting climate change

	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
Scope 1 CO2 emissions (tonnes of CO2e) [GRI 305-1]	264,679	387,651	479,175	537,092	272,728	263,540	266,357	274,458	275,889	208,314	263,571	385,410
Scope 2 CO2 emissions (tonnes of CO2e) [GRI 305-2]	52,752	61,377	36,079	33,941	32,444	27,010	22,979	30,300	34,273	1,654	0	0
Self-consumption of natural gas (GWh) [GRI 302-1]	1,025	1,672	1,932.1	2,338.1	963.0	919.3	1,030.4	1,055.7	1,120.2	833.5	1,098	1,764
Electricity consumption (GWh)(1) [GRI 302-1]	201.5	186.7	150.0	143.1	148.3	160.5	192.0	181.2	214.3	207.3	197.3	250.5
Electricity generation/consumption (%)	1.9%	5.4%	6.8%	4.7%	8.0%	12.5%	11.0%	12.5%	17.1%	19.2%	16.7%	14.1%
Waste generated (tonnes) [GRI 306-3]	3,722	3,913	3,455	2,189	3,823	3,981	2,813.8	4,136.2	2,807	3,616	5,195	2,458
Waste recovered / recycled (%) [GRI 306-4]	59%	48%	63%	15%	40%	61%	73%	83%	89%	91%	96%	91%
Area occupied in protected areas (km2) (2) [GRI 304-1]			3.7	4.0	4.0	4.0	4.0	6.7	6.7	6.7	6.7	7.4

(1) Includes consumption from the network and from own generation sources.

(2) The increase in the surface area of protected natural areas in 2022 was due to the redrawing of the boundaries of these areas, increasing the area of protection and including Enagás facilities already present in these locations.

The protected natural areas considered are: Natura 2000 Network (LIC/ZEPA), Ramsar wetlands and Biosphere Reserve. The last two protection figures indicated are not included in the data prior to 2018.

About our Consolidated Management Report

[GRI 2-1, GRI 2-3]

Standards and principles used

The Consolidated Management Report of Enagás, S.A. (parent company) and its subsidiaries (the Group) is prepared annually and includes the non-financial information statement that was prepared by the Board of Directors on February 20, 2023, complying with the requirements of: [GRI 2-14]

• a. Directive 2014/95/EU on non-financial information and diversity, as well as with the associated Spanish legislation (Law 11/2018). See Appendix 'Non-financial and diversity reporting requirements (Law 11/2018) and the EU Taxonomy for sustainable activities Regulation'.
• b. Regulation (EU) 2020/852 of the European Parliament and of the Council of June 18, 2020 on the establishment of a framework to facilitate sustainable investments and its delegated acts, which establish the obligation to disclose information on how and to what extent the company's activities are associated with economic activities that are considered environmentally sustainable in relation to climate change mitigation and adaptation objectives. See Appendix 'Non-financial and diversity reporting requirements (Law 11/2018) and the EU Taxonomy for sustainable activities Regulation'.

The Annual Corporate Governance Report and the Annual Report on Directors' Remuneration form an integral part of this Consolidated Management Report. Both documents are available on the corporate website or on the CNMV website.

See the Annual Corporate Governance Report on the corporate website

See the Annual Report on Directors' Remuneration on the corporate website

The following standards and principles were used in preparing this 2022 Annual Report:

• In accordance with the GRI Standards, including the 2021 updated version of the global standards and the sector standard GRI 11: Oil and Gas Sector 2021. Enagás, in addition to the GRI Standards content associated with the material topics indicated in this sectoral standard, identifies other GRI Standards relevant to the company's activity and nature. The Management Report is submitted to the GRI Content Index-Advanced Service. See appendix 'GRI table of contents'.
• • The principles of standard AA1000: inclusivity, materiality, responsiveness and impact.
• • The SASB (Sustainability Accounting Standards Board) reporting standard for the Oil & Gas - Midstream sector. See Appendix 'SASB content index'.
• Recommendations of the Task Force on Climate Related Disclosures (TCFD). See Appendix 'TCFD content index'.
• The Sustainable Development Goals approved by the United Nations General Assembly, which Enagás integrates in its strategy and are set out in the 'Our contribution to the SDG' sub-section.
• The ten principles of the UN Global Compact, as set out in the Appendix 'Global Compact content index'.
• The main contents and metrics defined by the World Economic Forum in the report to measure "stakeholder capitalism".
• Recommendations included in the 'Guide for the preparation of management reports of listed companies' of the CNMV.

External verification [GRI 2-5]

The Non-Financial Information Statement was verified by an independent third party, in this case EY, in order to comply with the requirement of Law 11/2018 for external verification and in line with Enagás' commitment to transparency, reliability and rigour of the information. For the scope of this verification, see the Appendix 'External verification report'.

Scope of the financial and non-financial information

The scope of this report includes the information on 2022 financial year of the Enagás Group (hereinafter 'Enagás'). The following criteria have been applied to the information reported herein:

• The financial information is presented in accordance with the consolidation principles applied in the annual accounts.
• Non-financial information relates to operations over which Enagás maintains control (companies consolidated in the Consolidated Annual Accounts in accordance with the full consolidation method). These companies are mainly located in Spain. Start-ups59 are excluded from the scope, as their non-financial impact is not considered relevant. [GRI 2- 2]

For further details on the scope of the financial information, refer to the 'Consolidated Annual Accounts', section 1.3 'Basis of consolidation'.

For further details on the ownership structure of Enagás, see the 'Annual Corporate Governance Report', section A. Ownership structure'.

⁵⁹ These start-ups and subsidiaries (Efficiency for LNG applications S.L., Scale Gas Solutions S.L. and Sercomgas Gas Solutions. See the 'Corporate entrepreneurship' chapter) are in the early stages of developing their businesses, so their impact is not very significant (for example, they account for 2% of

Enagás' workforce). Enagás will assess the impact of operations as its business and representation evolves, incorporating them into the scope of the non-financial information if relevant.

External verification report [GRI 2-5]

-

-

-

[GRI 2-5] 158

-

-

Non-financial and diversity reporting requirements (Law 11/2018) and the EU Taxonomy for sustainable activities Regulation

The following are the requirements established by Law 11/2018 and the EU Taxonomy Regulation that are responded to in the Non-Financial Information Statement and in the Annual Corporate Governance Report included in the Consolidated Management Report:

Non-Financial Information Statement

Requirements established by Law 11/2018 and the EU Taxonomy Regulation	Reporting framework	Page numbers, URL and/or direct response
General
Description of the business model: business environment, organisation and structure, markets in which it does business, objectives and strategies and main factors and trends that might affect its future progress and materiality analysis.	GRI 2-1, GRI 2-2, GRI 2-6, GRI 2-9, GRI 2-23, GRI 3-1, GRI 3-2	7-8, 10-11, 17, 40-45, 101-105, 119-122 139, 156
Description of the Group's policies with respect to environmental and social issues, respect for human rights and the fight against corruption and bribery, as well as those related	GRI 2-23, GRI 2-24, GRI 3-3 for all material topics	16-17, 47, 64, 72, 82, 89, 95, 97-99, 108-110, 114, 121- 123, 129-130
to personnel The results of the Group's policies applied to environmental and social issues, respect for human rights and the fight against corruption and bribery, as well as those related to personnel	GRI 2-23, GRI 2-24, GRI 3-3 for all material topics	16-17, 47-48, 64, 72-82, 89-92, 95, 97-99, 108-110, 114, 121-123, 129-132
The main risks related to environmental and social issues, respect for human rights and the fight against corruption and bribery, as well as those related to personnel, linked to the activities of the Group	GRI 2-23, GRI 2-24, GRI 2-25, GRI 201-2	18-20, 49-51, 57, 92, 109-110, 124, 129-132, 142-149
Non-financial key performance indicators	GRI 2-6, GRI 2-7, GRI 2-8, GRI 3-3 for all material topics	6, 10, 16-17, 47, 64-68, 73-74, 77, 82, 89-92, 95, 97-99, 108, 114, 119-123, 129-130, 139, 151-155
I. Information on environmental issues
Detailed information on the current and foreseeable effects of the company's activities on the environment
Detailed information on the current and foreseeable effects of the company's activities on the environment and, as the case may be, on health and safety	GRI 3-3 for all material topics related to the environment, GRI 303-1, GRI 304-2, GRI 306-1, GRI 306-3, GRI 308-2	16-21, 47, 50-51, 89-99, 139-141
Environmental assessment or certification procedures	GRI 3-3 for all material topics related to the environment, GRI 303-1, GRI 306-2, GRI 308-1, ISO:14001 Standard, EMAS	16-17, 37-39, 47, 89-95, 97-99, 139, 141
Resources dedicated to the prevention of environmental risks	GRI 201-2, GRI 303-1, GRI 303-2, GRI 304-2, GRI 306-2, GRI 308-1	18-20, 49-51, 57, 91-95, 97-99, 139, 140-149

Requirements established by Law 11/2018 and the EU Taxonomy Regulation	Reporting framework	Page numbers, URL and/or direct response
Application of the precautionary principle	GRI 3-3 for all material topics related to the environment	47, 89-93, 95, 97-99, 108, 129-131
The amount of provisions and guarantees for environmental risks	GRI S11.7.6	92, 121-122
Pollution
Measures to prevent, reduce or rectify carbon emissions that seriously harm the environment; considering any activity specific form of air pollution, including noise and light pollution	GRI 3-3 on the material topics 'GHG emissions', 'Climate adaptation, resilience, and transition' and 'Air emissions' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 305- 1, GRI 305-2, GRI 305-5	43, 47, 53-63, 89, 90, 94, 99, 170
Circular economy and waste prevention and management
Circular economy and waste prevention and management: measures of prevention, recycling, reuse and other forms of recovery and elimination of waste	GRI 306-2, GRI 306-3, GRI 306-4, GRI 306-5	94-97, 155
Actions to combat food waste	GRI 3-3 on the material topic 'Waste' identified by the sector standard GRI 11: Oil and Gas Sector 2021	Given the company's activity and the material topics identified, food waste is not a relevant issue for the company.
Sustainable use of resources
Sustainable use of resources: water consumption and supply according to local restrictions	GRI 303-1, GRI 303-2, GRI 303-3, GRI 303-4, GRI 303-5	97-98
Consumption of raw materials and the measures adopted to improve efficiency in their use	GRI 3-3	95
Direct and indirect consumption of energy, measures taken to improve energy efficiency and the use of renewable energy	GRI 302-1, GRI 302-3, GRI 302-4, GRI 302-5, GRI 305-5	57-61, 155
Climate change
Climate change: the important elements of greenhouse gas emissions generated as the result of the company's activities, including the use of the goods and services produced	GRI 305-1, GRI 305-2, GRI 305-3, GRI 305-4	47, 53-56, 61-63, 155
The measures adopted in order to adapt to the consequences of climate change	GRI 3-3 on the material topics 'GHG emissions' and 'Climate adaptation, resilience, and transition' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 201-2	16-21, 47, 49-52, 142-149
The voluntarily established long and short-term emission reduction targets to reduce greenhouse gas emissions and the measures implemented for this purpose	GRI 3-3 on the material topics 'GHG emissions' and 'Climate adaptation, resilience, and transition' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 203-1, GRI 203-2,	15-17, 47, 58, 60-61
Biodiversity protection

Requirements established by Law 11/2018 and the EU Taxonomy Regulation	Reporting framework	Page numbers, URL and/or direct response
Biodiversity protection: measures taken to preserve or restore biodiversity	GRI 3-3 on the material topics 'Biodiversity' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 304-3	89-93
Impacts caused by activities or operations in protected areas	GRI 3-3 on the material topics 'Biodiversity' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 304-2, GRI 304-3, GRI 304-4	89-93, 172
II. Information on social and personnel-related issues
Employment
Total number and distribution of employees by gender, age, country and professional group	GRI 2-7, GRI 405-1	65-66, 77
Total number and distribution of work contract modalities	GRI 2-7	66
Yearly average of permanent contracts, temporary contracts and part-time contracts by gender, age and professional group	GRI 2-7	66-67
Number of dismissals by gender, age and professional group	GRI 401-1	68
Average remuneration and its evolution by gender, age and professional group or equivalent	GRI 2-19, GRI 2-21, GRI 405-2	75-76
Gender pay gap, remuneration for equal work or average for the company	GRI 405-2 Ratio of the difference between the average remuneration of men compared to women among the average remuneration of men. Average remuneration including basic salary at December 31, variable remuneration, allowances, payments to long-term savings plans and any other item, such as overtime.	74-75
The average remuneration of directors and managers, including variable remuneration, expenses, compensation, payments to long-term savings plans and any other item by gender	GRI 2-19, GRI 2-20, GRI 405-2	75-76, 106-107
Implementation of policies related to the disconnecting from work	GRI 3-3 on the material topics 'Labour practices' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 401-2	64, 68-69, 79-80
Employees with disabilities	GRI 405-1	78
Organisation of work
Organisation of work hours	GRI 3-3 on the material topics 'Labour practices' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 401-2	64, 79
Number of hours lost to absenteeism	Internal reporting framework: Number of hours of absenteeism including hours lost to common illness and accidents at work	82, 85 79,761.2 hours' absenteeism in 2022 (60,999.1 in 2021, and 74,848.1 in 2020)
Measures aimed at providing work-life balance and promoting their shared use by both parents	GRI 401-2, GRI 401-3	79-80

Requirements established by Law 11/2018 and the EU Taxonomy Regulation	Reporting framework	Page numbers, URL and/or direct response
Health and safety
Health and safety conditions in the workplace	GRI 403-1, GRI 403-2, GRI 403-3, GRI 403-4, GRI 403-5, GRI 403-6, GRI 403-7, GRI 403-8	82-88
Work-related accidents	GRI 403-9	82, 84, 85
Frequency and severity, by gender	GRI 403-9	82, 84
Occupational illnesses, by gender	GRI 403-10	85 Enagás has not identified occupational illnesses over the last three years
Social relations
Organisation of social dialogue, including procedures for notifying and consulting employees and negotiating with them	GRI 2-26, GRI 2-29, GRI 2-30, GRI 403-1, GRI 403-4	40-44, 80-81, 83, 109, 121
Percentage of employees covered by collective bargaining agreements by country	GRI 2-30	80-81
Results of collective bargaining agreements, particularly in relation to occupational health and safety	GRI 2-30, GRI 403-4	80-81, 83
Mechanisms and procedures that the company has in place to promote the involvement of workers in the management of the company, in terms of information, consultation and participation60	GRI 2-26, GRI 2-29, GRI 403-4, GRI 407-1	40-44, 80-81, 83, 109, 121, 130
Training
Training policies implemented	GRI 404-2	70-71
Total number of hours of training courses by professional group GRI 404-1		70-71
Universal accessibility for persons with disabilities
Universal accessibility for persons with disabilities	GRI 3-3 on the material topics 'Non-discrimination and equal opportunity' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 405-1	64, 72, 78
Equality
Measures adopted to promote equal treatment and opportunities for men and women	GRI 3-3 on the material topics 'Non-discrimination and equal opportunity' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 401-3, GRI 406-1	64, 72-76, 79-80
Equality plans (Chapter III of Spanish Constitutional Act 3/2007 of March 22, for Effective Equality between Women and Men)	GRI 3-3 on the material topics 'Non-discrimination and equal opportunity' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 405-1	64, 72-73, 81, 130
Measures adopted to promote employment	GRI 2-7, GRI 2-23, GRI 203-2	64-71
Protocol against sexual harassment and harassment on the grounds of sex	GRI 2-23, GRI 3-3 on the material topics 'Non-discrimination and equal opportunity' identified by the sector standard GRI 11: Oil and Gas Sector 2021,	64, 72-73, 130

⁶⁰ Requirement derived from the amendment of the Spanish Commercial Code in Law 5/2011.

Requirements established by Law 11/2018 and the EU Taxonomy Regulation	Reporting framework	Page numbers, URL and/or direct response
Integration and universal accessibility for persons with disabilities	GRI 3-3 on the material topics 'Non-discrimination and equal opportunity' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 405-1	64, 72, 78
Policy against any type of discrimination and, where appropriate, for managing diversity	GRI 3-3 on the material topics 'Non-discrimination and equal opportunity' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 406-1	64, 72-78, 109-110, 130
III. Information on respect for human rights
Application of due diligence procedures in relation to human rights	GRI 2-23, GRI 2-25, GRI 410-1	129-132
Prevention of the risks of violation of human rights and, where appropriate, measures to mitigate, manage and rectify any possible abuses committed	GRI 3-3 on the material topics 'Employment practices', 'Non discrimination and equal opportunity', 'Forced labor and modern slavery', 'Freedom of association and collective bargaining', 'Land and resource rights', 'Rights of indigenous peoples' identified by the sector standard GRI 11: Oil and Gas Sector 2021	109-110, 129-132, 140-141
Formal complaints for cases of violation of human rights	GRI 2-26	109-110, 129-132
Promotion of and compliance with the provisions of the fundamental conventions of the International Labour Organisation in relation to respect for freedom of association and the right to collective bargaining	GRI 407-1	80-81, 109, 129-132, 140-141
Elimination of discrimination in employment and occupation; the elimination of forced or compulsory labour and the effective elimination of child labour	GRI 409-1	80-81, 109, 129-132, 140-141
IV. Information relating to the fight against corruption and bribery
Measures adopted to prevent corruption and bribery	GRI 2-23, GRI 2-24, GRI 205-1, GRI 205-2, GRI 205-3	108-111, 113
Measures to combat money laundering	GRI 205-2	108-111, 113
Contributions to foundations and not-for-profit organisations	GRI 201-1, GRI 413-1	125-128
V. Information about the company
The company's commitment to sustainable development
The impact of the company's activity on employment and local development	GRI 3-3 on the material topics 'Local communities' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 413-1, GRI 413-2	123-128
The impact of the company's activity on local communities and on the region	GRI 3-3 on the material topics 'Local communities' identified by the sector standard GRI 11: Oil and Gas Sector 2021, GRI 413-1, GRI 413-2	123-128
Relations with key figures of local communities and modalities of dialogue with them	GRI 2-26, GRI 411-1, GRI 413-1	41, 109, 124-125
Association and sponsorship actions	GRI 2-28, GRI 413-1	112-113, 125-128
Subcontracting and suppliers
Inclusion in the procurement policies regarding social issues, gender equality and environment	GRI 2-6, GRI 308-1, GRI 308-2, GRI 414-1, GRI 414-2	139-141

Requirements established by Law 11/2018 and the EU Taxonomy Regulation	Reporting framework	Page numbers, URL and/or direct response
Consideration in supplier and subcontractor relations of their social and environmental responsibilities	GRI 2-6, GRI 308-1, GRI 308-2, GRI 414-1, GRI 414-2	139-141
Systems for supervision and auditing and their results	GRI 308-1, GRI 308-2, GRI 414-1, GRI 414-2	139-141
Consumers
Measures for the health and safety of consumers	GRI 403-7	86
Complaint systems	GRI 2-6, GRI 418-1	41, 121
Complaints received and their resolution	GRI 2-6, GRI 418-1	121
Tax information
Profits obtained by country	GRI 201-1, GRI 207-4	115
Tax paid on profits	GRI 207-4	117
Public subsidies received	GRI 201-4	181 In 2022, 156 thousands of euros of public subsidies corresponding to gas infrastructure investments were received, 3,509 thousands of euros in 2021 and 1,197 thousands of euros in 2020 (in all three years, 100% were received in Spain).
European Sustainable Finance Taxonomy
Net sales volume eligible and aligned with the Taxonomy	Regulation (EU) 2020/852, Delegated Regulation (EU) 2021/2139,	26-33
CAPEX eligible and aligned with the Taxonomy	Delegated Regulation (EU) 2021/2178 and Delegated Regulation	26-33
OPEX eligible and aligned with the Taxonomy	(EU) 2022/1214.	26-33

Annual Corporate Governance Report

Information from the Annual Corporate Governance Report

Information from the Annual Corporate Governance Report

Ownership structure

General Shareholders' Meeting

Company management structure

Related party and intragroup transactions

Risk control and management systems

GRI content index

Statement of use	Enagás has prepared its Consolidated Management Report in accordance with GRI Standards for the period from January 1, 2022, to December 31, 2022. [GRI 2-3]
GRI 1 used	GRI 1: Foundation 2021
Applicable GRI sector standards	GRI 11: Oil and Gas Sector 2021

General disclosures

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
		GENERAL DISCLOSURES
GRI 2: General disclosures 2021	The organization and its reporting practices
	2-1 Organizational details	10, 156
	2-2 Entities included in the	156
	organization's sustainability reporting
	2-3 Reporting period, frequency and contact point	156, 166, 188
	2-4 Restatements of information	27, 54, 60
	2-5 External assurance	156-159
	Activities and workers
	2-6 Activities, value chain and other	7-8, 10, 119-121, 139
	business relationships
	2-7 Employees	6, 65-68, 77, 153	Regarding requirement d), Enagás
			does not consider it relevant to
			publish this information broken down
			by region, as 99.1% of its workforce
	2-8 Workers who are not employees	65, 139
	Governance
	2-9 Governance structure and	101-103
	composition	Section 'C) Company Management Structure' of the 'Annual Corporate Governance Report'.
	2-10 Nomination and selection of the highest governance body	102

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
	2-11 Chair of the highest governance body	101 Section D.6 of the 'Annual Corporate Governance Report'.
	2-12 Role of the highest governance body	9, 40, 48, 102, 109, 133, 143
	in overseeing impact management 2-13 Delegation of responsibility for managing impacts	40, 48, 86, 105, 109-110, 133, 143
	2-14 Role of the highest governance body in sustainability reporting	5, 40, 156
	2-15 Conflicts of interest	102
		Enagás Internal Code of Conduct in Matters Relating to Securities Markets (pages 10-19)
		Articles 13 and 25 of the Regulations of the Enagás Board of Directors
		Section D.6 of the Annual Corporate Governance Report
	2-16 Communication of critical concerns	104
	2-17 Collective knowledge of the highest governance body	103
	2-18 Evaluation of the performance of the highest governance body	102-103
	2-19 Remuneration policies	15, 75-76, 106-107 2022 Directors' Remuneration Report
	2-20 Process to determine remuneration	15, 106-107

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
		2-21 Annual total compensation ratio In 2022, the Chief Executive Officer's total annual remuneration was 21.5 times the median total annual remuneration of the workforce.
		In 2022, the increase in the Chief Executive Officer's total annual remuneration (+24.6%) was 5.3 times the increase in the median total annual remuneration of employees (+4.6%).61
	Strategy, policies and practices
	2-22 Statement on sustainable development strategy	1-5
	2-23 Policy commitments	13, 15, 109-110, 129-130
	2-24 Embedding policy commitments 15, 109-110
	2-25 Processes to remediate negative impacts	109-110, 124, 129-132
	2-26 Mechanisms for seeking advice and raising concerns	109
	2-27 Compliance with laws and	Enagás has not received any
	regulations	significant fines or penalties during
		2022 (neither did it in 2021).
		To be classified as significant, they
		must have a significant impact from a
		financial or reputational point of view.
	2-28 Membership associations	112-113
	Stakeholder engagement
	2-29 Approach to stakeholder engagement	40-41, 81, 121, 124, 139
	2-30 Collective bargaining agreements	80-81

⁶¹The following criteria have been taken into consideration for the calculation of this indicator:

^– In February 2022, a new Chief Executive Officer, Mr Arturo Gonzalo Aizpiri, was appointed. Therefore, in the calculation of his total annual remuneration, his annual base salary has been considered together with the actual remuneration received during the year.

^– In 2022, the long-term incentive plans (2019-2021) were settled, significantly increasing the remuneration of the company's employees. As the current Chief Executive Officer did not receive this remuneration, for comparative purposes, the calculation has been made without considering the long-term incentive for any of the groups.

Material topics

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
		MATERIAL TOPICS
GRI 3: Material Topics 2021	3-1 Process to determine material topics	40-44
	3-2 List of material topics	42-43, 45
GHG emissions
GRI 3: Material Topics 2021	3-3 Management of material topics	16-17, 47		S11.1.1
	302-1 Energy consumption within the organization	59, 155		S11.1.2
	302-2 Energy consumption outside of the organization	6, 56		S11.1.3
GRI 302: Energy 2016	302-3 Energy intensity	60		S11.1.4
	302-4 Reduction of energy consumption	58
	302-5 Reductions in energy requirements of products and services	58
	305-1 Direct (Scope 1) GHG emissions	47, 53-56, 155		S11.1.5
	305-2 Energy indirect (Scope 2) GHG emissions	47, 53-56, 155		S11.1.6
GRI 305: Emissions 2016	305-3 Other indirect (Scope 3) GHG emissions	61-63		S11.1.7
	305-4 GHG emissions intensity	54		S11.1.8
Climate adaptation, resilience and transition
GRI 3: Material Topics 2021	3-3 Management of material topics	16-17, 47		S11.2.1
GRI 201: Economic Performance 2016	201-2 Financial implications and other risks and opportunities due to climate change	18-20, 49-51, 57, 142-149		S11.2.2
GRI 305: Emissions 2016	305-5 Reduction of GHG emissions	16-17, 58, 60-61		S11.2.3
Additional sector disclosures	Describe the organization's approach to public policy development and lobbying on climate change	61, 112-113		S11.2.4
Air emissions
GRI 3: Material Topics 2021	3-3 Management of material topics	89, 90, 99		S11.3.1

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
GRI 305: Emissions 2016	305-6 Emissions of ozone-depleting substances (ODS)	Enagás does not emit substances that deplete the ozone layer (chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), halons or methyl bromide).
	305-7 Nitrogen oxides (NOx), sulfur oxides (SOx) and other significant air emissions	99		S11.3.2
GRI 416: Customer Health and Safety 2016	416-1 Assessment of the health and safety impacts of product and service categories	83 100% of the activities and services of the companies under the Enagás Group's Joint Prevention Service are assessed in terms of health and safety in order to make improvements.		S11.3.3
Biodiversity
GRI 3: Material Topics 2021	3-3 Management of material topics	89-93		S11.4.1

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
	304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas	91, 155		S11.4.2
	304-2 Significant impacts of activities, products and services on biodiversity	92-93		S11.4.3
	304-3 Habitats protected or restored	91, 93		S11.4.4
GRI 304: Biodiversity 2016	304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations	Enagás' infrastructures are spread throughout Spain, including 19 compressor stations, 6 LNG plants, 3 underground storage facilities, 6 international connections and a meshed network of more than 11,000 km of gas pipelines. This is why the species taken into account are those present in Spain: species included in the IUCN (International Union for Conservation of Nature) Red List and national conservation list with habitats in areas affected by operations. Along these lines, Enagás has identified the different species with the aim of prioritising and defining programmes of biodiversity protection.		S11.4.5
Waste
GRI 3: Material Topics 2021	3-3 Management of material topics	89-90, 95		S11.5.1
GRI 306: Waste 2020	306-1 Waste generation and significant waste-related impacts	95		S11.5.2
	306-2 Management of significant waste-related impacts	94-95		S11.5.3
	306-3 Waste generated	95-97, 155		S11.5.4
	306-4 Waste diverted from disposal	95-97, 155		S11.5.5
	306-5 Waste directed to disposal	95-97		S11.5.6

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
GRI 308: Supplier Environmental Assessment 2016	308-1 New suppliers that were screened using environmental criteria 139
	308-2 Negative environmental impacts in the supply chain and actions taken	139-141
Water and effluents
GRI 3: Material Topics 2021	3-3 Management of material topics	89-90, 97-98		S11.6.1
	303-1 Interactions with water as a shared resource	97-98		S11.6.2
GRI 303: Water and effluents 2018	303-2 Management of water discharge-related impacts	98 Enagás' main discharges are seawater used in regasification plants - which is returned in a way that does not change its nature (minimum temperature change) - and wastewater. In all cases, the quality standards of our discharges are established by the Environmental Authorisations applicable to each f l 97-98		S11.6.3
	303-3 Water withdrawal	Although all Enagás' facilities are located in Spain, a country considered to be highly water stressed (40-80%), almost 100% of the water withdrawn is seawater62		S11.6.4
	303-4 Water discharge	97-98		S11.6.5
	303-5 Water consumption	98		S11.6.6
Closure and rehabilitation
GRI 3: Material Topics 2021	3-3 Management of material topics	121-122		S11.7.1
GRI 402: Labor/Management Relations 2016	402-1 Minimum notice periods regarding operational changes	Should there be substantial changes to working conditions, the individual changes are communicated 15 days in advance and collective changes are preceded by a period of consultation with the Workers' Legal Representatives lasting no more than 15 days.		S11.7.2

⁶² World Resources Institute (WRI), Aqueduct 3.0: Country Risk. 2019.

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
GRI 404: Training and Education 2016	404-2 Programs for upgrading employee skills and transition assistance programmes	68, 70		S11.7.3
Additional sector disclosures	List the operational sites that: – Have closure and rehabilitation plans in place; – have been closed; – are in the process of being closed.	121-122		S11.7.4
	List the decommissioned structures left in place and describe the rationale for leaving them in place.	121-122		S11.7.5
	Report the total monetary value of financial provisions for closure and rehabilitation made by the organization, including post-closure monitoring and aftercare for operational sites.	121-122		S11.7.6
Asset integrity and critical incident management
GRI 3: Material Topics 2021	3-3 Management of material topics	97, 121		S11.8.1
GRI 306: Effluents and waste 2016	306-3 Significant spills	97 There have been no oil or waste spills in the last three years.		S11.8.2
Additional sector disclosures	Report the total number of Tier 1 and Tier 2 process safety events, and a breakdown of this total by business activity.	In 2022, 43 containment loss incidents were recorded according to the API RP 754 standard (3 classified as Tier 2 and 40 as Tier 3). In 2021, there were 28 such incidents (all of them classified as Tier 3); in 2020, there were 34 (1 classified as Tier 1, 2 as Tier 2 and 31 as Tier 3).		S11.8.3
	Additional sector disclosures for organizations with oil sands mining operations.		Not applicable. As shown in the graph in the 'Our business model' section, Enagás does not carry out oil sands mining operations.	S11.8.4
Occupational health and safety
GRI 3: Material Topics 2021	3-3 Management of material topics	82		S11.9.1

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
GRI 403: Occupational health and safety 2018	403-1 Occupational health and safety management system	82-83		S11.9.2
	403-2 Hazard identification, risk assessment and incident investigation 85-86			S11.9.3
	403-3 Occupational health services	87		S11.9.4
	403-4 Worker participation, consultation, and communication on occupational health and safety	83		S11.9.5
	403-5 Worker training on occupational health and safety	82-83		S11.9.6
	403-6 Promotion of worker health	83, 87-88		S11.9.7
	403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relations	83, 87		S11.9.8
	403-8 Workers covered by an occupational health and safety management system	83		S11.9.9
	403-9 Work-related injuries	82, 84-86, 154		S11.9.10
	403-10 Work-related ill health	85		S11.9.11
Work placements
GRI 3: Material Topics 2021	3-3 Management of material topics	64		S11.10.1
GRI 202: Market Presence 2016	202-1 Ratios of standard entry level wage by gender compared to local minimum wage	73, 130
GRI 401: Employment 2016	401-1 New employee hires and employee turnover	67-68	Enagás does not consider it relevant to publish this information broken down by region, as 99.1% of its workforce is located in Spain.	S11.10.2
	401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees	79, 80, 88		S11.10.3
	401-3 Parental leave	80		S11.10.4

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
GRI 402: Labor/Management Relations 2016	402-1 Minimum notice periods regarding operational changes	Should there be substantial changes to working conditions, the individual changes are communicated 15 days in advance and collective changes are preceded by a period of consultation with the Workers' Legal Representatives lasting no more than 15 days.		S11.10.5
	404-1 Average hours of training per year per employee	64, 71		S11.10.6
GRI 404: Training and Education	404-2 Programs for upgrading employee skills and transition assistance programs	68, 70		S11.10.7
2016	404-3 Percentage of employees receiving regular performance and career development reviews	64, 69-70
GRI 414: Supplier Social	414-1 New suppliers that were screened using social criteria	139		S11.10.8
Assessment 2016	414-2 Negative social impacts in the supply chain and actions taken	139-141		S11.10.9
Non-discrimination and equal opportunity
GRI 3: Material Topics 2021	3-3 Management of material topics	64, 72		S11.11.1
GRI 202: Market Presence 2016	202-2 Proportion of senior management hired from the local community	100% of senior managers in Spain are local. At the end of 2022, there were no executives hired outside Spain. Employees with the nationality of the country in which they work are considered local.		S11.11.2
GRI 401: Employment 2016	401-3 Parental leave	80		S11.11.3
GRI 404: Training and Education 2016	404-1 Average hours of training per year per employee	64, 71		S11.11.4
GRI 405: Diversity and equal opportunity 2016	405-1 Diversity of governance bodies and employees	66, 73, 77-78, 100, 102, 105	99.1% of the workforce is located in Spain, and the breakdown of the indicators by region is not relevant.	S11.11.5
	405-2 Ratio of basic salary and remuneration of women to men	74-76		S11.11.6
GRI 406: Non-discrimination 2016	406-1 Incidents of discrimination and corrective actions taken	In 2022, there have been no discrimination cases in the company.		S11.11.7

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
Forced labour and modern slavery
GRI 3: Material Topics 2021	3-3 Management of material topics	129-130		S11.12.1
GRI 409: Forced or Compulsory Labor 2016	409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor	130-131		S11.12.2
GRI 414: Social assessment of suppliers 2016	414-1 New suppliers that were screened using social criteria	139		S11.12.3
Freedom of association and collective bargaining
GRI 3: Material Topics 2021	3-3 Management of material topics	129-130		S11.13.1
GRI 407: Freedom of Association and Collective Bargaining 2016	407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk	130		S11.13.2
Economic impacts
GRI 3: Material Topics 2021	3-3 Management of material topics	114		S11.14.1
GRI 201: Economic Performance 2016	201-1 Direct economic value generated and distributed	6, 115, 125, 151		S11.14.2
GRI 202: Market Presence 2016	202-2 Proportion of senior management hired from the local community	100% of senior managers in Spain are local. At the end of 2022, there were no executives hired outside Spain. Employees with the nationality of the country in which they work are considered local.		S11.14.3
GRI 203: Indirect Economic Impacts 2016	203-1 Infrastructure investments and services supported	18-21, 25		S11.14.4
	203-2 Significant indirect economic impacts	18-21, 64, 67, 117-118, 139		S11.14.5
GRI 204: Procurement Practices 2016	204-1 Proportion of spending on local suppliers	139		S11.14.6
Local communities
GRI 3: Material Topics 2021	3-3 Management of material topics	123-124		S11.15.1
GRI 413: Local Communities 2016	413-1 Operations with local community engagement, impact assessments, and development programs	123-128	Enagás reports this content qualitatively. Enagás is working to be able to report it in full in future years.	S11.15.2
	413-2 Operations with significant actual and potential negative impacts on local communities	124		S11.15.3

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
Additional sector disclosures	Report the number and type of grievances from local communities identified.	124, 132 In 2022, as in 2021, no complaints have been received from local communities associated with the approval process for projects.		S11.15.4
Land and resource rights
GRI 3: Material Topics 2021	3-3 Management of material topics	129-130		S11.16.1
Additional sector disclosures	List the locations of operations that caused or contributed to involuntary resettlement or where such resettlement is ongoing. For each location, describe how people's livelihoods and human rights were affected and restored.	131 Enagás has not carried out and does not carry out involuntary resettlement of local communities or individuals.		S11.16.2
Rights of indigenous peoples
GRI 3: Material Topics 2021	3-3 Management of material topics	129-130		S11.17.1
GRI 411: Rights of Indigenous Peoples 2016	411-1 Incidents of violations involving rights of indigenous peoples	130 No incidents of violations involving rights of indigenous peoples were identified in 2022, as in the two		S11.17.2
	List locations of operations where indigenous peoples are present or affected by activities of the organization.	p e io s ea s 130, 132 Enagás has not identified any location among its direct operations (operational control) where indigenous populations are present or affected.		S11.17.3
Additional sector disclosures	Report if the organization has been involved in a process of seeking free, prior and informed consent (CLPI) from indigenous peoples for any of the organization's activities.	130, 132 Enagás has not identified any location among its direct operations (operational control) where indigenous populations are present or affected.		S11.17.4

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
Conflict and security
GRI 3: Material Topics 2021	3-3 Management of material topics	129-130		S11.18.1
GRI 410: Security Practices 2016	410-1 Security personnel trained in human rights policies or procedures	131 The security personnel present at Enagás Group facilities are authorised security guards and belong to private security companies. Enagás requires these companies to train security personnel in human rights (100% of security personnel trained).		S11.18.2
Anti-competitive behaviour
GRI 3: Material Topics 2021	3-3 Management of material topics	108		S11.19.1
GRI 206: Anti-competitive Behavior 2016	206-1 Legal actions for anti competitive behavior, anti-trust, and monopoly practices	In 2022, as in the previous two years, Enagás did not receive any penalties, nor is there any legal action pending in matters of unfair competition, monopolistic practices and abuse of free competition.		S11.19.2
Anti-corruption
GRI 3: Material Topics 2021	3-3 Management of material topics	108		S11.20.1
GRI 205: Anti-Corruption 2016	205-1 Operations assessed for risks related to corruption	111		S11.20.2
	205-2 Communication and training about anti-corruption policies and procedures	108, 111, 113		S11.20.3
	205-3 Confirmed incidents of corruption and actions taken	110-111		S11.20.4

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
Additional sector disclosures	Describe the approach to contract transparency.	Contracts subject to civil law are not public due to their confidential terms. However, they include an anti corruption clause to prevent and combat corruption. In addition, as Enagás is an entity operating in the energy sector, its procedures for awarding works, supply and service contracts are subject to the provisions of Royal Decree-Law 3/2020 on public procurement. Activities related to regasification, storage and transmission of natural gas carried out by Enagás are regulated activities; consequently, their economic and operating regime is governed by the provisions of Law 34/1998 of October 7, on the hydrocarbons sector and its implementing provisions, as well as applicable environmental and urban planning regulations. In addition, all of them provide in each case for the procedure to be followed by each specific procedure carried out and resolved by the public administrations and, where appropriate, the submission of the different phases of the same to the corresponding public entity or publication.		S11.20.5
			Not applicable. As shown in the graph in the

List the organization's beneficial owners and explain how the organization identifies the beneficial owners of business partners, including joint ventures and suppliers.

'Our business model' section,

the company's activity commences with tankers offloading at any of its regasification plants or at international connections in the pipeline network.

S11.20.6

GRI Standard	Content	Page numbers, URL and/or direct response	Omissions	Reference no. for GRI sector standard
Payments to governments
GRI 3: Material Topics 2021	3-3 Management of material topics	108		S11.21.1
GRI 201: Economic Performance 2016	201-1 Direct economic value generated and distributed	6, 115, 125, 151		S11.21.2
	201-4 Financial assistance received from government	In 2022, 156 thousands of euros of public subsidies corresponding to gas infrastructure investments were received. 100% of these public subsidies were received in Spain.		S11.21.3
	207-1 Approach to tax	112		S11.21.4
	207-2 Tax governance, control and risk management	41, 109, 112, 148		S11.21.5
GRI 207: Tax 2019	207-3 Stakeholder engagement and management concerns related to tax	40, 112		S11.21.6
	207-4 Country-by-country reporting	115, 117-118	Partially reported information. For learn more about this information, see the 'Consolidated Annual Accounts'.	S11.21.7
Additional sector disclosures	For oil and gas purchased from the state, or from third parties appointed by the state to sell on their behalf, report: – volumes and types of oil and gas purchased; – full names of the buying entity and of the recipient of the payment; – payments made for the purchase.		Not applicable. As shown in the graph in the 'Our business model' section, Enagás does not purchase natural gas or oil.	S11.21.8
Public Policy
GRI 3: Material Topics 2021	3-3 Management of material topics	108		S11.22.1
GRI 415: Public Policy 2016	415-1 Political contributions	The financing of political parties is expressly prohibited, and this is one of the risks that Enagás has defined in its crime prevention model. In 2022, Enagás did not make political contributions of any kind.		S11.22.2

SASB content index

Outreach topics on sustainability and accounting standards

Topic	Accounting metric	Category	Unit of measure	Code	Page numbers and/or direct response
Greenhouse gas emissions	Gross global Scope 1 emissions, percentage methane, percentage covered under emissions-limiting regulations	Quantitative	Metric tons (t) CO₂-e, percentage (%)	EM-MD-110a.1	53, 56-57 Methane emissions account for 17.5% of Scope 1 emissions.
	Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets	Discussion and analysis	n/a	EM-MD-110a.2	15-17, 52-55
Air quality	Air emissions of the following pollutants: NOx (excluding N2O), SOx, volatile organic compounds (VOCs) and particulate matter (PM10)	Quantitative	Metric tons (t)	EM-MD-120a.1	99

Topic	Accounting metric	Category	Unit of measure	Code	Page numbers and/or direct response
Ecological impacts	Description of environmental management policies and practices for active operations	Discussion and analysis	n/a	EM-MD-160a.1	89-99 Enagás' policies and practices are aligned with the January 2012 Performance Standards on Environmental and Social Sustainability of the International Finance Corporation (IFC).
	Percentage of land owned, leased and/or operated within areas of protected conservation status or endangered species habitat	Quantitative	Percentage (%) per area EM-MD-160a.2		91 Enagás' infrastructures occupy a surface area of 7.4 km2 (6.7 km2 in 2021 and 2020) of land located in Protected Natural Spaces (Natura 2000 Network (LIC/ZEPA), Ramsar wetlands and Biosphere Reserves), which represents approximately 16.1% of the total surface area occupied by Enagás (14.5% in 2021 and 2020). The increase in the surface area of protected natural areas in 2022 was due to the redrawing of the boundaries of these areas, increasing the area of protection and including Enagás facilities already present in these locations.
	Terrestrial area disturbed, percentage of impacted area restored	Quantitative	m2, percentage (%)	EM-MD-160a.3	91 In 2022, 42.4% of the disturbed area was restored (54.2% in 2021 and 37.0% in 2020), and in 2023 Enagás will continue to work on restoring the remaining area.
	Number and aggregate volume of oil spills, volume in Arctic, volume in Unusually Sensitive Areas (USAs), and volume recovered	Quantitative	Number, litres	EM-MD-160a.4	97 In 2022, as in the previous two years, there were no oil spills as defined by the SASB (spill greater than 159 litres). However, the following smaller oil spills occurred in 2022: 50 litres of diesel fuel at the Cartagena Regasification Plant, 8 litres of diesel at the Yela Underground Storage Facility and 0.2 litres of diesel and 2.5 litres of liquid with hydrocarbons at the Gaviota Underground Storage Facility. 95.6% of the volume of these spills has been recovered. None of these spills occurred in the Arctic or unusually sensitive areas (as defined by SASB).

Topic	Accounting metric	Category	Unit of measure	Code	Page numbers and/or direct response
Competitive behavior	Total amount of monetary losses as a result of legal proceedings associated with federal pipeline and storage regulations	Quantitative	Reporting currency (€)	EM-MD-520a.1	In 2022, as in the previous two years, Enagás did not incur any monetary losses or receive any penalties or fines as a result of legal proceedings relating to competitive behaviour.
Operational safety, emergency preparedness and response	Number of reportable pipeline incidents, percentage significant	Quantitative	Number, percentage (%)	EM-MD-540a.1	During 2022 there were no incidents in accordance with the SASB definition of an incident. However, based on the criteria established by API RP 754, there were 43 containment loss incidents: 3 classified as Tier 2 and 40 as Tier 3. In 2021, there were 28 such incidents (all of them classified as Tier 3); in 2020, there were 34 (1 classified as Tier 1, 2 as Tier 2 and 31 as Tier 3).
	Percentage of natural gas and hazardous liquids pipelines inspected	Quantitative	Percentage (%)	EM-MD-540a.2	121
	Number of accident releases and non-accident releases (NARs) from rail transportation	Quantitative	Number	EM-MD-540a.3	Not applicable. As shown in the graph in the 'Our business model' section, the company's activity does not include rail transport.
	Discussion of the management systems used to integrate a culture of safety and emergency preparedness throughout the value chain and project lifecycles	Discussion and analysis	n/a	EM-MD-540a.4	83, 85-86

Activity metrics

Topic	Activity metric	Category	Unit of measure	Code	Page numbers, URL and/or direct response
Activity	Total metric ton-kilometers of: (1) natural gas, (2) crude oil, and (3) refined petroleum products transported, by mode of transport	Quantitative	Metric ton (t), kilometers	EM-MD-000.A	6, 56 In 2022, Enagás transported 25,846,758 tonnes of natural gas through its network of nearly 11,000 km of gas pipelines (25,048,324 tonnes in 2021 and 23,884,366 tonnes in 2020).

TCFD content index

Task Force on Climate-related Financial Disclosures (TCFD) recommendations

Areas	Recommendations	Page numbers, URL and/or direct response
Governance	Describe the board's oversight of climate-related risks and opportunities.	48 See the 'Governance model for climate change management' sub-section in the 'Climate action and energy efficiency' section, where the supervisory functions of the Board of Directors are detailed.
	Describe management's role in assessing and managing climate-related risks and opportunities.	48 See the 'Governance model for climate change management' sub-section in the 'Climate action and energy efficiency' section, which describes, among other matters, the risk assessment and management functions of the Audit and Compliance Committee and the Sustainability Committee consisting of the company's main management teams.
Strategy	Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.	49-51, 142-149 See the 'Risk management' chapter which describes Enagás' global risk management framework as well as the Corporate Risk Map which includes the "Role of natural gas in the future energy mix" and "Sustainability (ESG)" as emerging risks; these are risks due to climate change, among other factors. In addition, the 'Risk management and opportunities arising from climate change' sub-section in the 'Climate action and energy efficiency' section includes the specific map of Risks and Opportunities of climate change, as well as a descriptive table of the factors associated to each risk and its control and management measures.
	Describe the impact of climate related risks and opportunities on the organisation's businesses, strategy, and financial planning.	49-51 As detailed in the 'Risk management and opportunities arising from climate change' sub section in the 'Climate action and energy efficiency' section, based on the assessment carried out, the effects of the risks of climate change would have a low-medium economic impact on the company in 2040 (around 10% of profit). However, these effects would be offset by the opportunities that have been identified, both in the areas of hydrogen infrastructures, energy transition investments, development of renewable gases through our affiliate Enagás Renovable and new liquefied natural gas (LNG) logistics services.
	Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.	13-14, 16-33, 49-51 See the 'Risk management and opportunities arising from climate change' sub-section in the 'Climate action and energy efficiency' section, which sets out the different scenarios considered in the risk assessment, together with the result of the impact and probability of occurrence. The '2030 Strategic Plan' sub-section also includes information on Enagás' strategic growth areas in the context of decarbonisation and energy transition. Specifically, the role of new uses of natural gas as well as the development of renewable gases (biomethane/hydrogen), which are key elements of the fight against climate change. In addition, the 'Decarbonisation and carbon neutrality' section details our decarbonisation strategy and the priority focus on the promotion of renewable gases and new uses of natural gas in mobility, reinforcing the resilience of Enagás' strategy for tackling climate change.

Areas	Recommendations	Page numbers, URL and/or direct response
Risk management	Describe the organization's processes for identifying and assessing climate related risks.	49-51, 142-149 See the 'Risk management' chapter for details of the 'three lines of defence' for risk control
	Describe the organization's processes for managing climate-related risks.	and management including the identification, assessment and management of company risks, a process that includes climate change related risks. In addition, in the 'Risk management and opportunities arising from climate change' sub section in the 'Climate action and energy efficiency' section, the process of managing risks and opportunities arising from climate change is explained in more detail.
	Describe how processes for identifying, assessing, and managing climate related risks are integrated into the organization's overall risk management.
Metrics and Targets	Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.	49-51 See the 'Risk management and opportunities arising from climate change' sub-section in the 'Climate action and energy efficiency' section for the Climate Change Risks and Opportunities map and the metrics (e.g. probability, benefit impact) used for the assessment of climate change related risks and opportunities.
	Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.	52-57, 61-63 See the 'Our climate change performance' and 'Scope 3 emissions' sub-sections on the 'Climate change and energy efficiency' section.
	Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.	16-17 See the 'Targets and roadmap for decarbonisation' sub-section in the 'Our commitment to the energy transition' section, where the reduction targets are included, as well as the degree of achievement.

Global Compact content index

The Global Compact is an ethical commitment initiative designed so that entities from all countries can adhere to, as an integral part of their strategy and operations, ten universal principles governing conduct and action on matters concerning human rights, labour, the environment and the fight against corruption.

Enagás has been a member of the United Nations Global Compact since 2003 and regularly renews its commitment, maintaining a public and transparent record of the progress it has made in this field in an annual report published on the Global Compact website (www.pactomundial.org).

The links between the ten principles of the Global Compact and the GRI standards considered in this report are listed in the table below, and the United Nations Global Compact Communication on Progress, published by the United Nations Global Compact Office in May 2007.

To make it easier to recognise the activities most directly related to the principles of the Global Compact, Enagás has singled out the GRI standards that have a direct bearing on these principles. The table below indicates the pages of this report in which this information is contained.

GC	Human rights	GRI Standards Contents	Pages
Human Rights
1	Companies must support and protect internationally acknowledged basic human rights within their sphere of influence	GRI 407-1, GRI 409-1, GRI 410-1, GRI 411-1, GRI 414-1, GRI 414-2	130-131, 139-141
2	Companies must ensure they are not a party to human rights infringements	GRI 410-1	131
Labour standards
3	Companies must support the freedom of association to trade unions and accept in actual practice the collective bargaining process	GRI 2-30, GRI 407-1	80-81, 130
4	Companies must support all steps to eradicate forced or coerced labour	GRI 409-1	130-131
5	Companies must support the eradication of child labour	GRI 409-1	130-131
6	Companies must support the abolition of discriminatory practices in employment and occupation	GRI 401-1, GRI 405-1, GRI 405-2, GRI 406-1	66-68, 73-78, 100, 102, 105
Environment
7	Companies must uphold a preventive approach that helps protect the environment	GRI 305-5, Management approach Natural Capital and Biodiversity	16-17, 58, 60-61
8	Companies must promote initiatives that foster greater environmental responsibility	GRI 302-4, GRI 302-5, GRI 304-3, GRI 304-4, GRI 305-5, GRI 306-1, GRI 306-2	16-17, 58, 60-61, 91, 93-95
9	Companies must foster the development and dissemination of environmentally friendly technology	GRI 302-4, GRI 302-5, GRI 304-3, GRI 304-4, GRI 305-5, GRI 306-1, GRI 306-2	16-17, 58, 60-61, 91, 93-95
Anti-corruption
10	Entities must work against corruption in all its forms including extortion and bribery	GRI 205-1, GRI 205-3	110-111

Contact [GRI 2-1, GRI 2-3]

Please address any comments, requests for clarification or suggestions in connection with this report to:

Enagás, S.A.

Paseo de los Olmos, 19 28005 Madrid

Investor Relations Department

Tel.: +34 91 709 93 30 / 900 100 399

E-mail: accionistas@enagas.es

Sustainability and Climate Action Department

Tel.: +34 91 709 92 62

E-mail: sostenibilidad@enagas.es

Enagás' financial information contains aggregates and measurements prepared in accordance with applicable accounting regulations, as well as another series of measures prepared in accordance with the reporting standards established and developed in-house, known as Alternative Performance Measures (APMs).

These APMs are considered to be adjusted versions of the figures presented in accordance with the International Financial Reporting Standards adopted by the European Union (IFRS-EU), which is the accounting framework applicable to the Enagás Group's consolidated financial statements, and should therefore be considered by the reader as additional to, but not a substitute for, these standards.

The APMs are important for financial information users because they are the measures used by the Enagás management to assess the Group's financial performance, cash flows and financial position for making operational and strategic decisions. These APMs are consistent with the main indicators used by the investment and analyst community in the capital markets.

In this regard, and in accordance with the provisions of the Guidelines issued by the European Securities and Markets Authority (ESMA), in force since July 3, 2016, regarding the transparency of Alternative Performance Measures, below Enagás provides information on those APMs set forth in the management information for Q4 of the financial year 2022 that it considers to be significant.

Furthermore, in line with what was reported in 2021 and 2020 in relation to the general situation arising from Covid-19 and in order to comply with the ESMA recommendations issued in 2020, it is indicated that no significant effects have arisen as the Enagás Group has continued to operate normally during this situation. On this basis, it was not necessary to introduce new APMs or to modify or adjust the APMs currently presented in these financial years.

1. Alternative Performance Measures related to the Income Statement

EBITDA

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) is an indicator that measures the company's operating profit before deducting interest, taxes, impairment and depreciation. By dispensing with financial and tax amounts, as well as accounting expenses that do not involve cash outflows, it is used by management to evaluate results over time, enabling comparison with other companies in the sector.

EBITDA is calculated as operating profit, increased by depreciation and amortization, impairment losses, if any, and other items that do not represent cash inflows or outflows from Enagás' operations (such as capital gains or losses on disposals, provisions, etc.).

The reconciliation based on the Operating Income shown in the Consolidated Financial Statements as at December 31, 2022 is shown below:

	Q4 2022
Operating income	970.3
Results of affiliates	201.2	(*)
Operating expenses	-374.1
EBITDA	797.4

(*) For management purposes, the concept of 'Results of Affiliates' presented as part of operating income, in the amount of 201.2 million euros, does not include the effect of the amortisation of the PPAs, amounting to 54.4 million euros, which is considered to be a higher amortisation expense and therefore excluded from EBITDA. Considering the above two items together, the amount would be 146.8 million euros.

Adjusted EBITDA

Adjusted EBITDA is an indicator that measures the company's operating profit before the deduction of interest, taxes, impairment and amortization, and includes both dividends received and interest on subordinated debt collected from associates that are included in the financial statements of the Enagás Group using the equity method.

This indicator is used by Management to calculate the leverage ratios described in the section 'Alternative Performance Measures related to the Balance Sheet and leverage ratios', allowing comparison with other companies in the sector. The reconciliation of Adjusted EBITDA for financial year 2022, which is subsequently used in the leverage ratios, is shown below:

	Q4 2022
EBITDA	797.4
Dividends (*)	121.5
Results of affiliates (**)	-201.2
ADJUSTED EBITDA	717.6

(*) This relates mainly to dividends received from companies accounted for using the equity method. It also includes interest on subordinated debt collected from companies accounted for by the equity method. (**) As the dividends received from affiliates are considered, the results of these companies must be excluded, which is included in EBITDA as described in the previous section.

EBIT

EBIT (Earnings Before Interest and Taxes) is an indicator that measures a company's operating income before the deduction of interest and taxes. As with the previous indicator, it is used by Management to evaluate results over time, allowing comparison with other companies in the sector.

EBIT is calculated as EBITDA, less depreciation and amortization, impairment losses, if any, and other items that do not represent cash inflows or outflows from Enagás' operations (such as capital gains or losses on disposals, provisions, etc.).

EBIT for financial year 2022 amounted to 478.2 million euros. This amount matches the operating profit at that date.

2. Alternative Performance Measures related to the Balance Sheet and Leverage Ratios

Net Debt

Net financial debt is the main indicator used by Management to measure the Group's debt level. It is comprised of gross debt less cash in hand.

To calculate the gross debt, the balance sheet items "Debts with credit institutions", "Debentures and other marketable securities" valued at amortised cost and "Other financial liabilities" include loans other than to credit institutions as well as the adjustment derived from the application of IFRS 16 are added

The cash amount is obtained from 'Cash and cash equivalents' in the Consolidated Balance Sheet.

The reconciliation between the APM and the figures corresponding to the consolidated balance sheet for the period ending December 31, 2022, are shown below (in million euros):

	Q4 2022
Cash and cash equivalents	1,359.3
Debts with credit institutions	-1,690.6
Debentures and other marketable securities	-2,736.6
Other financial liabilities (1)	-401
Net debt	-3,468.9

(1) The amount included in this heading relating to the recognition of the financial liability for the application of IFRS16 amounts to 399.9 million euros. Additionally, the debt granted by bodies other than credit institutions amounts to 1.1 million euros.

Ratios linked to Net Debt

Management uses two ratios to analyse the leverage and the Group's ability to meet its financial obligations over time, enabling comparison with other companies in the sector.

The leverage ratio is calculated as Net Debt/Adjusted EBITDA, as shown below:

	Q4 2022
Net debt	3,468.9
Adjusted EBITDA	717.7
Net Debt/EBITDA (adjusted)	4.8x

The ratio linked to the capacity to generate cash flows over net debt is calculated as FFO for the last twelve months (LTM) / Net Debt, as shown below:

	Q4 2022
FFO(*)	612.0
Net debt	3,468.9
FFO/Net Debt	17.6%

(*) This amount is explained below in the section on Alternative Performance Measures related to Cash Flow and Investments.

3. Alternative Performance Measures related to Cash Flow

and Investments

Funds from Operations ('FFO')

FFO is the main cash generation indicator analysed by Enagás' management, as it measures both the cash generated by the domestic regulated and non-regulated business, as well as the cash generated for the Group from its international business, either through dividends from affiliates or interest payments on subordinated debt granted to these companies, after deducting both tax payments and interest related to the Group's financial debt.

It is calculated as:

FFO = EBITDA discounting the results of affiliates +/- tax collection/payment +/- interest collection/payment + dividends received from affiliates + interest on subordinated debt collected from affiliates.

The reconciliation between this APM and the amounts observable in the Consolidated Financial Statements as of December 31, 2022 is shown below:

	Q4 2022
Operating profit	478.2
Amortisation allowances () (**)	319.2
EBITDA	797.4
Tax collection / (payment)	-48.2
Collection / (payment) of interest (**)	-59
Dividends (**)	121.5
Other adjustments	1.5
Results of affiliates (*)	-201.2
FFO	612

(*) For management purposes, 'Amortisation allowances' includes, in addition to the depreciation and amortisation allowances for fixed assets, the effect of the amortisation of the PPAs, amounting to 54.4 million euros at December 31, 2022.

(**) For management purposes, interest on subordinated debt collected from affiliates is included under 'Dividends'.

(***) Includes impairment losses and result from disposal of fixed assets recognised in the year.

Operating cash flow ('OCF')

Operating Cash Flow measures the capacity to generate operating cash after changes in working capital. It is calculated on the basis of FFO and includes the change in working capital.

OCF amounted to 847.4 million euros in Q4 2022. The reconciliation between this APM and the figures seen in the Consolidated Financial Statements for the period ended December 31, 2022, is shown below (in million euros):

	Q4 2022
FFO	612
Change in operating working capital	235.3
OPERATING CASH FLOW (OCF)	847.4

Free Cash Flow ('FCF')

Free cash flow measures cash generation from operating and investment activities and is considered by Enagás to be an essential APM as it is the indicator used to assess the funds available both to pay dividends to shareholders and to service debt.

Reported FCF for Q4 2022 amounted to 1,395.9 million euros. The reconciliation between this APM and the figures seen in the Consolidated Financial Statements for the period ended December 31, 2022, is shown below (in million euros):

	Q4 2022
OPERATING CASH FLOW (OCF)	847.4
Payments for investments	-150.3
Proceeds from disposals	698.8
Free Cash Flow (FCF)	1395.9

Discretionary Cash Flow ('DCF')

Discretionary cash flow is an APM used by management to manage existing funding needs. It is defined as free cash flow (FCF) less dividends paid to shareholders and certain exchange differences related to net debt.

The reported DCF for Q4 2022 stood at 991 million euros. The reconciliation between this APM and the figures seen in the Consolidated Financial Statements for the period ended December 31, 2022, is shown below (in million euros):

	Q4 2022
Free Cash Flow (FCF)	1395.9
Dividend payments	-446.7
Effect of exchange rate variations	41.8
Discretionary Cash Flow (DCF)	991

Pursuant to Article 253 of the Corporate Enterprises Act and Article 37 of the Commercial Code, and remaining applicable standards, on February 20, 2023, the Board of Directors of Enagás, S.A. authorised the Consolidated Management Report which, in accordance with the provisions of Law 11/2018 of December 28 on non-financial information and diversity, includes the Consolidated Non-Financial Information Statement for the year ended December 31, 2022, consisting of the accompanying documents preceding this document.

DECLARATION OF RESPONSIBILITY: For the purposes of Article 118.2 of the consolidated text of the Securities Market Act and Article 8.1.b) of Royal Decree 1362/2007, of October 19, the directors state that, to the best of their knowledge, the Consolidated Management Report includes a true and fair analysis of the performance and results of the businesses and the situation of the Company, together with the description of the main risks and uncertainties faced, and includes the Non-Financial Information Statement in accordance with the provisions of Law 11/2018, of December 28, on non-financial information and diversity. They additionally state that, to the best of their knowledge, the directors not signing did not express dissent with respect to the Consolidated Management Report.

Chairman:	Chief Executive Officer:
Mr Antonio Llardén Carratalá	Mr Arturo Gonzalo Aizpiri
Directors:
Sociedad Estatal de Participaciones Industriales SEPI (Represented by Mr Bartolomé Lora Toro)	Mr José Montilla Aguilera
Ms Ana Palacio Vallelersundi	Ms María Teresa Arcos Sánchez
Ms Eva Patricia Úrbez Sanz	Natalia Fabra Portela

Directors: Mr Santiago Ferrer Costa Ms Clara Belén García Fernández-Muro Mr David Sandalow Mr José Blanco Lopez Ms María Teresa Costa Campi Mr Manuel Gabriel González Ramos Mr Cristóbal José Gallego Castillo

DILIGENCE to record that, in accordance with the call of the Board of Directors, having been held at the registered office, allowing the Directors to participate telematically, the Consolidated Management Report has been drawn up with the agreement of all members of the Board of Directors, which is certified by the Secretary to the Board with his signature below, and with the signatures of those Directors who have physically participated in the Board of Directors.

Electronic signature of the Secretary to the Board:

Secretary to the Board of Directors

Mr Rafael Piqueras