Naturgy Energy Group S.A.

Earnings Release • Feb 15, 2023

FY 2 2

Results 15 February 2023

• 2022 snapshot
• Scenario
• Naturgy's role in 2022
• Consolidated results
• Results by business unit
• Summary and outlook 2023 Appendix

2022 snapshot

2022 snapshot

Scenario
Unprecedented energy scenario	65-320 €/MWh TTF min – max within the year
New regulatory measures and proposals	>20 new regulations1 in a year
Naturgy's role
Key player in energy security in Spain >30% of imported gas + 56% CCGTs production increase
Innovation and leadership in client solutions	>60% customers benefited from Naturgy's initiatives
Continued investment in energy transition 70% EU Taxonomy eligible capex
Naturgy's 2022 results
Full year results continue 9M22 trend
Significant deleveraging
Total 2022 dividend of 1.20 €/share, implying a payout of 70%

Solid progress on key ESG metrics

FY Results

Note: 1. Including RD, RD-laws, new laws, ministerial orders and CNMC resolutions

Energy markets evolution

Spanish electricity market (Pool) (€/MWh)

97.6

88.9

Unprecedented rise of commodity prices and extreme volatility in both gas and electricity markets…

Source: Platts, Bloomberg, OMIE (monthly average)

Note: 1. Minimum and maximum daily prices during the period

European gas and oil spot prices evolution

… particularly in European gas prices during 2022 compared to Brent

190

FX evolution¹

USD, MXN and BRL appreciations vs. EUR

Main regulatory measures and proposals

Spain

Temporary cap on regulated gas tariff increases (TUR)

• Clawback on windfall profits derived from infra-marginal generation sold > €67/MWh
• Additional measures protecting vulnerable customers and new social bond funding charged to all subjects
• "Iberian exception": temporary cap on CCGTs bidding price (cap on gas)
• 1.2% tax on aggregated turnover of liberalized activities in Spain (applicable 2023-24)

Europe

• Higher gas storage requirements from 80% (Nov. 2022) to 90% (Nov. 2023)
• "Solidarity contribution" of 33% tax on excess profits estimated as profits >120% the average profits during 2018-21
• Joint gas purchases (in progress)
• Price cap of 180 €/MWh on TTF subject to certain conditions (applicable from 2023)
• European power market reform expected during 2023

Regulatory changes to decouple electricity and gas prices, reduce volatility and cap prices

Naturgy's role in 2022

Naturgy played a key role to secure energy supply in Spain, with flexibility abroad

Essential role in procuring gas to the Spanish economy

CCGTs remained essential in Spanish power system

Lower hydro and higher energy exports led to higher thermal gap, highlighting CCGTs need and flexibility to balance renewables intermittency

Substantial production increase of CCGTs

CCGTs key to guarantee security of power supply

Source: Redeia

First mover contributing innovative solutions for stakeholders

More than 60% of customer base taking advantage of long-term price initiatives in 2022

• "Iniciativa compromiso": long term fixed price offers to protect industrial and residential segments
• 3-year electricity price commitment
• 2-year gas price commitment for communities & SMEs
• 3-year gas price commitment for industrial customers
• Price reduction for 1.5m residential customers
• Measures to support the shift to gas regulated tariffs to reduce energy bills on consumers
• Client service agents multiplied up to 12x to support customers' queries
• 4,000 new contracts per day to regulated tariffs
• Media campaigns to facilitate the shift to regulated tariffs

Ongoing support to vulnerable clients through Naturgy's foundation

Continued investment in energy transition

Capex allocation

Committed to the energy transition

Consolidated results

Key highlights

Stable gas gross margin of 5-6% despite volatile gas scenario	EBITDA	Net income
Full year results continue 9M22 trend	€4,954m	€1,649m
Capex increased by 30% with networks and renewables representing >90% of growth capex
Balance sheet strength and net debt reduction	Capex	Net Debt (as of 31 Dec.)
Total dividend of 1.20 €/share against 2022 results in line with Strategic Plan 21-25, implying a payout of 70%	€1,907m	€12,070m

Key figures

Focus on managing market volatility

Prudent capital allocation

Sources and uses of cash 2022 (€bn)

Strong cash flow and balance sheet with solid liquidity

Shareholder remuneration

DPS (€/sh.)

Total 2022 dividend: 1.20 Implied payout: 70%

Final dividend against 2022 subject to AGM approval

Progressing on key ESG metrics

, ( scopes 1+2+3)1 Reduction of tCO2
Projects (#)
Women in management positions
Suppliers ESG audited
Variable pay ESG linked
TCFD & Taxonomy implementation

Results by business unit

Networks Spain

EBITDA

Highlights

Gas networks: lower demand in the industrial segment, particularly in cogeneration, as well as in the residential segment, due to milder temperatures vs. 2021. Regulated remuneration adjustments due as part of the regulatory period 2021-26, are only partly compensated by lower opex

FY Results

Electricity networks: stable performance with growth from recognized investments partly offset by regulatory impacts. Comparison vs. 2021 figures affected by the restructuring plan in 2021

Gas flows impacted mainly by lower demand while electricity needs remained stable

Networks LatAm

EBITDA

Highlights

• Chile gas: higher sales and margins in supply were not enough to compensate for weaker results in distribution, impacted by lower margins from the regulatory review and one-off provisions
• Brazil gas: tariff updates and positive FX partially offset by substantially lower demand, particularly in power generation, due to abundant hydro resource in the year
• Mexico gas: positive FX impact offset by lower volumes and lower residential demand vs. 2021
• Panama electricity: higher sales and positive FX impact
• Argentina: higher sales and tariff updates

Tariff updates and positive FX evolution

Energy management

EBITDA

Highlights

Wholesale gas¹:

Higher selling prices internationally due to greater indexation to gas hub references, compared to longer term priced LNG procurement contracts

The decoupling of TTF with physical gas sales has led to reassess the effectiveness of hedging in LNG gas sales

• Spain thermal generation: substantial increase in CCGTs production to cover the shortfall in renewables and avoid brownouts particularly in Q4
• LatAm thermal generation: excluding positive FX impact, contribution below 2021 due to lower production and availability in Mexican CCGTs, per planned outages and maintenance

Growth mainly driven by global gas scenario

Renewables

EBITDA

Highlights

Spain & USA:

Higher prices and new capacity offset by lower hydro in Spain. Comparison affected by the recovery of the hydro canon in 2021 (+€191m)

Progress on development of USA pipeline

• Australia: higher production and positive evolution of the mark-to-market valuation of existing PPAs offset by higher opex
• LatAm: higher margins (except in Chile) and positive FX impact

Growth mainly driven by higher prices, offset by lower hydro and one-off effects in Spain

Supply

EBITDA Highlights

• Gas supply: improved overall margins and competitiveness from 2021 lows, specially in the industrial segment, following the withdrawal of some gas contracts and associated penalties in 2021. Sales in industrial and retail segments were lower vs. 2021
• Power supply: margin recovery from 2021 lows, which was impacted by power market buys at elevated pool prices due to a long supply position, dramatically impacting profitability in 2021. Power sales remained relatively stable vs. 2021

Summary and outlook 2023

Summary

Stable gross margins despite volatile gas scenario and regulatory uncertainty throughout2022

Naturgy played a key role in guaranteeing energy supply for the system

Naturgy strives to support society at all times

Progress on key ESG metrics towards 2025 targets

Full yearresults continue 9M22 trend

Prudent capital allocation and dividend policy

Outlook 2023 based on current energy scenario

Networks	Networks Spain: • Stable gas volumes • Moderate growth in electricity distribution Networks LatAm: tariff inflation updates and demand growth
Markets	Volatility and uncertainty in commodity prices Wholesale gas: • Procurement pipeline contracts to be adapted to reflect 2023 market conditions • LNG portfolio flexibility and diversification allows to capture physical sales opportunities Renewables: additional developments coming into operation in Spain, Australia and USA Supply: sustained profitability based on improved competitiveness vs. anomalous 2021
Capex	Step-up in capex, with investments in renewables increasing by at least 50%
Net debt	Strong cash flow generation and capex acceleration in renewables maintaining a strong investment grade rating
Dividend	2023 dividend at least equal to 2022 (1.20 €/share)
Financial reporting	Starting in 2023, financial reporting will be done on a semiannual basis

2023 EBITDA guidance at least equal to 2022 EBITDA

Appendix

Alternative Performance Metrics (i/iii)

Naturgy's financial disclosures contain magnitudes and metrics drafted in accordance with International Financial Reporting Standards (IFRS) and others that are based on the Group's disclosure model, referred to as Alternative Performance Metrics (APM), which are viewed as adjusted figures with respect to those presented in accordance with IFRS.

The chosenAPMs are useful for persons consulting the financial information as they allow an analysisof the financial performance, cash flows and financial situation of Naturgy, and a comparison with other companies.

Below is a glossary of terms with the definition of the APMs. Generally, the APM terms are directly traceable to the relevant items of the consolidated balance sheet, consolidated income statement, consolidated statement of cash flows or Notes to the Financial Statements of Naturgy. To enhance the traceability, a reconciliation is presented of the calculated values.

Alternative performance		Reconciliation of values
metrics	Definition and terms	31 December 2022	31 December 2021	Relevance of use
EBITDA	EBITDA = Revenue – Procurements + Other operating income – Personnel expenses – Other operating expenses + Gain/(loss) on disposals of fixed assets + Release of fixed asset grants to Income and other	Euros 4,954 million	Euros 3,529 million	EBITDA ("Earnings Before Interest, Taxes, Depreciation and Amortization") measures the Group´s operating profit before deducting interests, taxes, depreciations and amortizations. By dispensing with the financial, tax and accounting expenses magnitudes that do not entail a cash outflow, it allows evaluating the comparability of the results over time. It is an indicator widely used in the markets to compare the results of different companies.
Operating expenses (OPEX)	Personnel expenses (2)+ Own work capitalized + Other operating expenses - Taxes	Euros 1,794 million = 547 + 74 + 1,511 – 338	Euros 2,171 million = 940 + 77 + 1,315 – 161	Measure of the expenses incurred by the Group to carry out its business activities, without considering costs that do not involve cash outflows and taxes. Amount allowing comparability with other companies.
Investments (CAPEX)	Investments in intangible assets + Investments in property, plant & equipment	Euros 1,907 million = 333 + 1,574	Euros 1,484 million = 288 + 1,196	Measure of the investment effort of each period in assets of the different businesses, including accrued and unpaid investments. It allows to know the allocation of its resources and facilitate the comparison of the investment effort between periods. It is made up both of maintenance and growth investments (funds invested in the development or for the expansion of the Group's activities).

Alternative Performance Metrics (ii/iii)

Alternative performance metrics	Definition and terms	Reconciliation of values
		31 December 2022	31 December 2021	Relevance of use
Net Investments (net CAPEX)	CAPEX- Other investment receipts/(payments)	Euros 1,833 million = 1,907 – 74	Euros 1,423 million = 1,484 – 61	Measure of the investment effort of each period without considering the assets transferred or contributed by third parties.
Gross financial debt	"Non-current financial liabilities" + "Current financial liabilities"	Euros 16,301 million = 13,999 + 2,302	Euros 16,812 million = 15,114 + 1,698	Measure of the Group's level of financial debt. Includes current and non-current concepts. This indicator is widely used in capital markets to compare different companies.
Net financial debt	Gross financial debt - "Cash and cash equivalents" - "Derivative financial assets associated with financial liabilities"	Euros 12,070 million = 16,301 - 3,985 – 246	Euros 12,831 million = 16,812 - 3,965 – 16	Measure of the Group's level of financial debt including current and non-current items, after discounting the cash and cash equivalents balance and asset derivatives linked to financial liabilities. This indicator is widely used in capital markets to compare different companies.
Leverage (%)	Net financial debt (5) / (Net financial debt + "Net equity")	54.7% = 12,070 / (12,070 + 9,979)	59.1% = 12,831 / (12,831 + 8,873)	Measure of the weight of external resources in the financing of business activity. This indicator is widely used in capital markets to compare different companies.
Cost of net financial debt	Cost of financial debt - "Interest (financial revenues)"	Euros 501 million = 568 - 67	Euros 491 million = 510 - 19	Measure of the cost of financial debt without considering income from financial interests. This indicator is widely used in capital markets to compare different companies.
EBITDA/Cost of net financial debt	EBITDA / Cost of net financial debt	9.9x = 4,954 /501	7.2x = 3,529 /491	Measure of the company's ability to generate operating resources in relation to the cost of financial debt. This indicator is widely used in capital markets to compare different companies.
Net financial debt/ EBITDA	Net financial debt / EBITDA	2.4x = 12,070/4,954	3.6x = 12,831/ 3,529	Measure of the Group's ability to generate resources to meet financial debt payments.

Alternative Performance Metrics (iii/iii)

Alternative performance metrics		Reconciliation of values
	Definition and terms	31 December 2022	31 December 2021	Relevance of use
Market capitalization	No. of shares ('000) outstanding at end of period * Market price at end of period	Euros 23,571 million = 969,614 * Euros 24.31	Euros 27,760 million = 969,614 * Euros 28.63	Measure of the company's market value based on the market price of its shares.
Free Cash Flow after minorities	Net Free cash flow + Parent company dividends net of collected by other group companies + Purchase of treasury shares + Investment payments (group companies, associates and business units)	Euros 1,914 million = 744 + 1,153 + 0 + 17	Euros 2,113 million = 1,149 + 1,278 + 3 - 317	Measure of cash generation corresponding to operating and investment activities. It is used to evaluate funds available to pay dividends to shareholders, the payment of inorganic investments (acquisitions of companies or businesses) and to attend debt service.
Net Free Cash Flow	Cash flow generated from operating activities + Cash flows from investing activities + Cash flows from financing activities – Receipts/payments from financial liability instruments	Euros 744 million = 4,242 - 1,486 – 2,854 + 842	Euros 1,149 million = 1,001 + 1,896 – 2,851 + 1,103	Measure of cash generation to assess the funds available to debt service.
Average cost of financial gross debt	Annualized financial expense of the operations included in the gross financial debt excluding cost of financial lease liabilities and other refinancing expenses / monthly weighted average of the gross financial debt (excluding the debt by lease liabilities)	3.0% = (568-85-31) / 15,099	2.5% = (510 - 92 – 29) / 15,751	Measure of the effective interest rate of financial debt. This indicator is widely used in capital markets to compare different companies.
Liquidity	Cash and other equivalent liquid + Undrawn and fully committed lines of credit	Euros 9,482 million = 3,985 + 5,497	Euros 9,424 million = 3,965 + 5,459	Measure of the Group's ability to face any type of payment.
Economic value distributed	Procurements + Other operating expenses (includes Taxes) + Income tax payments + Personnel expenses + Work carried out for fixed assets + Financial expenses + Dividends paid by the parent company + Discontinued activities expenses before taxes	Euros 32,089 million = 27,194 + 1,511 + 762 + 547 + 74 + 837 + 1,164 + 0	Euros 22,470 million = 16,529 + 1,315 + 864+ 940 + 77 + 598 + 1,290 + 857	Measure of the company´s value considering the economic valuation generated by its activities, distributed to the different interest groups (shareholders, suppliers, employees, public administrations and society)

ESG Metrics

		FY22	FY21	Change	Comments
Health and safety
Accidents with lost time1	units	8	8	-	An unusual high number of accidents in 4Q22 has led to a worsening of the
LT Frequency rate2	units	0.12	0.10	20.0%	frequency rate
Environment
GHG Emissions3	M tCO2 e	15.1	13.5	11.9%	Lower hydro has led to higher CCGT production in the period to guarantee
Emission factor	t CO2/GWh	279	261	6.9%	energy supply. New renewables into operation contributed to limit the emission factor increase
Emissions-free installed capacity	%	37.5	36.3	3.3%	New wind capacity coming into operation in Spain
Emissions-free net production	%	29.4	35.4	-16.9%	Lower hydro production in the period vs. FY21
Interest in people
Number of employees	persons	7,112	7,336	-3.4%	Perimeter changes and business resizing
Training hours per employee	hours	35.9	28.8	24.7%	Growth explained by positive response to follow-up campaigns and new platforms in operation
Women representation	%	32.7	32.0	2.2%	Significant women representation in new hirings
Society and integrity
Economic value distributed4	€m	32,089	22,470	42.8%	Strong increase following activity growth
Notifications received by the ethics committee	units	43	61	-29.5%	Continues with the reducing trend in the last quarters

Notes:

1. In accordance to OSHA criteria

2. Calculated for every 200,000 working hours

3. Scopes 1 and 2

4. As defined in the Alternative Performance Metrics annex

Disclaimer

This document is the property of Naturgy Energy Group, S.A. (Naturgy) and has been prepared for information purposes only and contains inside information per the 2014 market abuse regulation.

This communication contains forward-looking information and statements about Naturgy. Such information can include financial projections and estimates, statements regarding plans, objectives and expectations with respect to future results, operations, capital expenditures or strategy.

Naturgy cautions that forward-looking information is subject to various risks and uncertainties, difficult to predict and generally beyond the control of Naturgy. These risks and uncertainties include the current volatile market and regulatory uncertainty, as well as those identified in the documents containing more comprehensive information filed by Naturgy and their subsidiaries in the different supervisory authorities of the securities markets in which their securities are listed and, in particular, the Spanish National Securities Market Commission.

Except as required by applicable law, Naturgy does not undertake any obligation to publicly update or revise any forward-looking information and statements, whether as a result of new information,future events or otherwise.

This document includes certain alternative performance measures ("APMs"), as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority in October 2015. For further information about this matter please refer to this presentation and to the corporate website (https://www.naturgy.com/en/shareholders_and_investors/investors/quarterly_results).

This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the restated text of the Securities Market Law approved by Royal Legislative Decree 4/2015, of 23 October and their implementing regulations. In addition, this document does not constitute an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, in any otherjurisdiction.

The information and any opinions or statements made in this document have not been verified by independent third parties; therefore, no warranty is made as to the impartiality, accuracy, completeness or correctness of the information or the opinions or statements expressed herein.

capitalmarkets@naturgy.com www.naturgy.com