Naturgy Energy Group S.A.

Investor Presentation • Feb 20, 2025

20 February 2025

1 2024 Results

• 2 Delivery of 2021 Strategic Plan
• 3 2025 Strategic Plan
• 4 Financial outlook 2025-27

2024 Results

1. 2024 Results

Energy markets evolution

84

FY23 FY24

65

FY24 marked by lower energy prices: a more challenging scenario

2024 Results Highlights

1. 2024 Results

• Efficient operational › management despite external factors and a more challenging energy backdrop
• Capital discipline and › profitability remained a cornerstone in the current environment ›
• Strong and resilient results in › line with 2023 record highs, maintaining strong balance sheet and flexibility

Results Capital allocation

-

Cash flow more than covered investments, dividends and taxes

2024 Results

1. 2024 Results

-

€m	FY24
EBITDA	5,365
Taxes	(663)
Financial costs	(465)
Non-cash items	(303)
Funds from operations	3,934
Change in working capital	58
Cash flow from operations	3,992
Gross capex	(2,280)
Tax equity, contributions & subsidies	314
Hybrid redemption	(500)
Dividends to minorities & others	(108)
Free cash flow after minorities	1,418

Cash flow and Net debt evolution

Maintained low leverage and reinforced liquidity

2024 Results Exceeded guidance

1. 2024 Results

-

Strong and resilient results in line with 2023 record highs

2024 Results

Gas networks

-

EBITDA (€m) 1. 2024 Results

322 Capex (€m)

• Spain: remuneration adjustments from current regulatory framework as well as lower residential demand due to mild temperatures
• Mexico: regulatory tariff updates, lower margins in supply, and negative FX impact
• Brazil: regulatory tariff updates in a negative inflation environment as well as lower demand in vehicle and residential segments
• Argentina: substantial tariff increases, and higher demand coupled with moderating trends in FX depreciation
• Chile: provisions adjustments related to the TGN litigation. Distribution benefited from tariff increases and demand growth while supply gained from higher prices and improved margins

Overall growth driven by LatAm despite FX

Results Electricity networks

-

1. 2024 Results EBITDA (€m)

• Spain: higher remunerated asset base and reduced penalties from lower energy losses
• Panama: impacted by regulatory review completed in July 2023 and higher demand due to rise in temperatures
• Argentina: regulatory tariff updates and higher demand due to temperatures, along with moderating trends in FX depreciation

Investments and regulation drive growth across all markets

597

Capex (€m)

Results Energy management

-

1. 2024 Results EBITDA (€m)

• 2024 price agreement with Sonatrach
  • Confirms solid relationship
  • Ensures prices reflect market conditions
  • Underlines commitment to security of supply
• Active management of hedged LNG volumes
• Comparison affected by the reversal in 2023 of the financial hedging ineffectiveness

Reduced risk and volatility securing competitive procurement

Results Thermal generation

-

• Spain: higher renewable resource including record high hydro production led to lower production and margins
• Mexico: higher revenue driven by higher availability and production
• CCGTs play an increasingly crucial role to guarantee security of supply in the face of increasing volatility arising from more renewable generation

EBITDA affected by record high hydro production in Spain

Results Renewable generation

-

1. 2024 Results EBITDA (€m)

• Spain: higher installed capacity and production, notably in hydro and wind
• USA: start of operation of the first solar plant (302MW) developed in Texas
• LatAm: lower margins in Chile and Costa Rica affected by the end of La Joya concession; lower production in Mexico due to lower wind resource
• Australia: new capacity coming into operation and positive evolution of the mark-to-market valuation of existing PPAs

Growth driven by selective investments and high hydro production

2024 Results Supply

-

146

Everyday, we serve energy (gas and/or power) to over 11m households in Spain (distribution and retail)

• Power: lower prices and regulatory price cap removal
• Gas: retail margins remained resilient together while industrial segment
• Client servicing: launch of a new digital platform to transform client interactions, with

EBITDA stabilization after an extraordinary 2023

1. 2024 Results

-

More challenging scenario vs. FY23

Resilient results in line with FY23 record highs

Exceeded delivery on FY24 commitments

Delivery of 2021 Strategic Plan

2021 Strategic Plan achievements

- 2. Delivery of 2021 Strategic Plan

›Advanced on decarbonization

›Continued efficiency gains

›Managed risks and ensured security of supply

›Enhanced commercial excellence

›Invested in talent and ESG

›Exceeded 2024 targets and created value

Advanced on decarbonization

- Strategic Plan

Continued efficiency gains

2. Delivery of 2021 Strategic Plan

-

Note: Peers considers 2023 published results from 6 integrated European utilities

2021 Managed risks and ensured security of supply

- Strategic Plan

hedged (%)

• Balance between inframarginal › generation and demand in Spain
• Optimized risk/return via physical › sales and financial hedging
• Additional flexibility via LNG fleet ›

Share of LNG volume financially

• Essential role of CCGTs to ensure › power supply
• Agreement with key suppliers › (e.g., Sonatrach) to secure supply at market conditions, maintaining key role as main supplier of gas in Spain

Naturgy's role to guarantee supply

>50%

Of CCGTs operating hours under restrictions

• Proactivity in the face of › exceptional measures derived from the 2022 energy crisis, particularly in Spain
• Positive regulatory tariff updates, › namely in Argentina, Mexico and Panama

Regulatory updates, 2021-24

37+ New high-level regulations in Spain 15+ Regulatory reviews in LatAm

Strategic Plan Enhanced commercial excellence

- 2. Delivery of 2021 Strategic Plan

Clients

• Improving › customer experience
• Increased value › -added services (inc. solar DG and Energy Savings Certificates)

Power market share (%) – residential liberalized segment

Installed solar distributed generation (MW)

Strategic Plan Invested in talent and ESG

- 2. Delivery of 2021 Strategic Plan

People

• Great Place to Work award in 2024 ›
• Special program › Flex&Lead for young talent

Share of women in management positions (%)

Share of employees under 30 years old (%)

Strategic Plan Exceeded Plan targets

2021

- 2. Delivery of 2021 Strategic Plan

Strategic Plan Value created for shareholders

- 2. Delivery of 2021 Strategic Plan

Notes:

values

(Equity + Net debt)

Consolidated ratios based on book

1. ROE estimated as Net income divided by average Equity in the period

2. ROIC estimated as EBIT after taxes divided by average invested capital

Strategic Plan Selected energy sector trends (i/ii)

2025

Strategic Plan Selected energy sector trends (ii/ii)

CCGT share of generation mix (%) 5 14 3x

PPA willingness to pay (€/MWh, 2024) Up to 2x

Naturgy's industrial model 2025

• 3. 2025 Strategic Plan

• Selective renewable generation growth
• Leadership in biomethane

Execution principles

• 3. 2025 Strategic Plan

Shareholder remuneration and share liquidity

• Attractive › and sustainable shareholder remuneration
• Promote actions › for adequate free float and being truly listed

Strategic Plan Key 2027 ESG objectives ²⁰²⁵

• 3. 2025 Strategic Plan

3. 2025 Strategic Plan

Energy markets outlook 2025

(€/t)

Note: 1. Average prices for the period

Platts, Heren, Bloomberg, ICE, OMIE

Source:

CAPEX plan 2025-27 – Key areas 2025

• 3. 2025 Strategic Plan

Total Capex 2025-27	€6.4 bn
20% 50% 30%	Networks Renewable energies Supply & Energy management
25%	Spain
75%	International
40%	Gas
45%	Renewable gas
15%	Power

Investments on adequately remunerated, clear and stable regulatory frameworks

• Spain gas › : deployment of smart meters and biomethane connections
• Spain power › : continue to upgrade quality of networks and energy supply
• LatAm (gas and power) › : commensurate with activity, regulatory commitments and strict profitability criteria

Networks Renewable energies

Power: selective investments meeting required returns and vertically integrated positioning and focused on:

Wind repowering and hybrids ›

Solar PV mainly with batteries ›

Gases: leadership in biomethane to accelerate decarbonization and consolidate the role of gas in the transition

Strategic Plan Networks 2025

• 3. 2025 Strategic Plan

Ambition: enabling energy transition, scaling growth and maintaining best-in-class operations

Value creation levers:

• Capture sources of growth ›
  • Gas: deploy smart meters and biomethane connections
  • Electricity: connect new renewable capacity and meet new demand

Continuous improvement in operational efficiency

• Best practices across assets
• Digitalization and automatization

Proactive regulatory management and concessions' extensions

• UFD and Nedgia in FY26 and FY27
• LatAm over the FY25-27 period

Energy management 2025

3. 2025 Strategic Plan

Ambition: ensure competitive supply and enhance value through asset optimization

Value creation levers:

• Active hedging and risk management › , ensuring Groups' supply and profitability, while reducing exposure to commodities
• Rebalancing of volume commitments and adapting key contracts
• Leverage contracts' flexibilities to provide additional value

Strategic Plan Thermal generation 2025

-

-

Ambition: guarantee flexibility in Spain and supply industrials in Mexico

Value creation levers:

• Continuous operational improvement to automate CCGTs operations and increase remote operation
• Successful management of Nuclear phase-outs
• Proactive regulatory management to obtain well designed capacity payments in Spain
• New technologies to increase flexibility and sustainability
  • Hybridization with batteries
  • Renewable gases
• Renegotiation of PPAs in Mexico

Renewable energies – Power 2025

3. 2025 Strategic Plan

Ambition: grow assets to cover clients decarbonization needs, prioritizing value over size

Value creation levers:

• Increase flexibility of the portfolio ›
  • Wind power (+410 MW)
  • Batteries for solar PV hybridization (+220 MW)
• Focus on geographies with integrated position and projects with advanced stage of development (+1.6 GW currently under construction)
• High control of the value chain and operational efficiency across assets to ensure value creation

Relevant indicators

Renewable energies – Gases 2025

3. 2025 Strategic Plan

Ambition: become the leading player in biomethane in Spain

Value creation levers

• Technological excellence › to allow for operational flexibility and optionality
• Large and solid pipeline › , complemented with alliances and acquisition of third-party developments to accelerate growth

Proactive regulatory management › to foster biomethane demand in Spain as an efficient solution to decarbonize the residential and industrial sector

Spain (status of development)

• Lagging behind › EU peers in biomethane plants and production
• Far from PNIEC 2030 › target of 20TWh (<10%)

Naturgy's plan

• €›800m growth CAPEX¹ invested until Dec 2027 in biomethane plants
• ⁺›4.5TWh in current portfolio pipeline
• Gas networks ready › to distribute biomethane with no modifications

~85

(GWh)

EBITDA (€m)

30

Strategic Plan Supply 2025

3. 2025 Strategic Plan

Ambition: become Europe's leader in customer service and operational efficiency

Value creation levers

• Customer base growth: ›
  • Integrated position in power
  • Leveraging biomethane in gas
• Increase value added services penetration › , including targeting of specific customers such as data centers

Margins protection ›

New digital platform: ›

• Fully customized, leveraging GenAI
• Simplification of products and processes

Relevant indicators

2025-27

Capital allocation

Financial outlook 2025-27

Free float increase through share repurchase

-

• 4. Financial outlook 2025-27

Objective

Increase free float › and improve liquidity to return to MSCI indexes

Calendar

Tender estimated to be completed by › July '25 subject to all approvals

Description

D
T 0
17 ■

Articulated as a › Voluntary Tender Offer subject to upcoming AGM's authorization:

• Price €26.50/share
• ~ 88 million shares
• Subject to Reference Shareholders committing to tender
• Upon completion, treasury stock will reach the › maximum allowed by law (10%), and Naturgy will start restoring the free float at its own discretion

Financial outlook 2025-27

Key financials

-

• 4. Financial outlook 2025-27

Sustain investment efforts

Maintain record EBITDA Maintain record Net income

Debt evolution

Commitment to BBB rating

S&P FFO / Net debt (%)

Dividend step-up

Dividends (€/share)

Financial outlook 2025-27

Closing remarks

-

• 4. Financial outlook 2025-27

• Extract value from › integrated position and multienergy offering
• Continue commitment with › energy transition
• Invest with capital discipline ›
• Deepen operational › excellence and client focus

Industrial model Financial goals

• Maintain record results ›
• Deliver attractive › shareholder remuneration
• Preserve BBB rating ›
• Reestablish free float ›

FX evolution

Change

658% 64% -9% 1%

Inflation evolution

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 presentedin accordance with IFRS.

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

Belowis a glossaryof terms with the definitionof theAPMs:

Alternative performance		Reconciliation of values
metrics	Definition and terms	31 December 2024	31 December 2023	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 5,365 million	Euros 5,475 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 + Own work capitalized + Other operating expenses - Taxes	Euros 2,028 million = 643 + 80 + 2,001 - 696	Euros 1,929 million = 580 + 79 + 1,780 - 510	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.
Capital expenditure (CAPEX)	Investment in intangible assets + Investment in property, plant and equipment + Investment payments (growth companies, associated and business units)	Euros 2,280 million = 340 + 1,925 + 15	Restatement of 31 December 2023: Euros 2,747 million = 327 + 1,809 + 611 Restatement of 30 June 2024: Euros 947 million = 137 + 800 + 10	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		Reconciliation of values		Relevance of use
metrics	Definition and terms	31 December 2024	31 December 2023
Net capital expenditure (Net CAPEX)	CAPEX - Other proceeds from investing activities	Euros 1,966 million = 2,280 – 314	Restatement of 31 December 2023: Euros 2,671 million = 2,747 - 76 Restatement of 30 June 2024: Euros 711 million = 947 - 236	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 18.022 million = 15,095+ 2,927	Euros 15,970 million = 13,426+ 2,544	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 12,201 million = 18,022 - 5,626 – 195	Euros 12,090 million = 15,970 - 3,686 – 194	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 / (Net financial debt + "Net equity")	51.1% = 12,201 / (12,201 + 11,653)	50.3% = 12,090 / (12,090 + 11,929)	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 490 million = 710 - 220	Euros 485 million = 675 - 190	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	10.9x = 5,365 / 490	11.3x = 5,475 / 485	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	2.3x = 12,201 / 5,365	2.2x = 12,090 / 5,475	Measure of the Group's ability to generate resources to meet financial debt payments.

Alternative Performance Metrics (iii/iii)

Alternative performance metrics	Definition and terms	Reconciliation of values
		31 December 2024	31 December 2023	Relevance of use
Free cash flow after non controlling interests	Net free cash flow + Parent company dividends net of collected by other group companies + Purchase of treasury shares	Euros 1,418 million = 73 + 1,345 + 0	Restatement of 31 December 2023: Euros 1,925 million = 474 + 1,441 + 10 Restatement of 30 June 2024: Euros 671 million = 287 + 384 + 0	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 73 million = 3,992 – 1,821 - 239 - 1,859	Euros 474 million = 4,857 – 2,739 - 2,263 + 619	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)	4.0% = (710 - 85 - 15) / 15,251	3.9% = (675 - 84 - 29) / 14,325	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 11,237 million = 5,626 + 5,611	Euros 9,237 million = 3,686 + 5,551	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 17,161 million = 11,565 + 2,001 + 663 + 643 + 80 + 842 + 1,345 +22	Euros 20,193 million = 15,106 + 1,780 + 377 + 580 + 79 + 817 + 1,454 + 0	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

	FY24	FY23	Change	Comments
Health and safety
Accidents with lost time1 units LT Frequency rate2 units		9	33.3%	Naturgy has launched its 24-25 global plan on Health & Safety with transversal actions that should contribute to improve safety metrics
		0.13	38.5%
Environment
GHG Emissions3 M tCO2 Emission factor t CO2/GWh	11.9 e 234	12.9 247	-7.8% -5.3%	Lower CCGT production in Spain due to higher rainfall. Emission factor improvement also as a result of higher renewable installed capacity
Emissions-free installed capacity %	43.5	41.0	6.1%	New renewable capacity coming into operation
Emissions-free net production %	43.0	38.6	11.4%	Higher hydro production and increase in renewable installed capacity
Interest in people
Number of employees4 persons	6,941	7,010	-1.0%	Stable workforce evolution
Training hours per employee hours	46.0	41.5	10.8%	New training for the whole organization, of which the course for prevention of working and sexual harassment is to be highlighted
Women representation4 %	35.0	33.9	3.3%	Advancing in the implementation of gender diversity policies
Society and integrity
Economic value distributed5 €m	17,173	20,193	-15.0%	Decrease explained mainly by lower procurement costs
Notifications received by the ethics committee units	117	80	46.3%	Increase following a new criteria to assign investigations coming through the ethics channel

Notes:

1. In accordance to OSHA criteria

2. Calculated for every 200,000

working hours 3. Scopes 1 and 2

1. In accordance with consolidation

criteria

1. 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.
• 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 other jurisdiction.
• 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

Av. de América 38, Madrid