REN-Redes Energeticas Nacionais

Earnings Release • May 3, 2018

RESULTS PRESENTATION 1Q18

• EBITDA was up by €4.7M (3.8%) to €128.4M, essentially due to the impact in results of the recent acquisition of Portgás (€10.9M). However, this was partially mitigated by the lower rates of return resulting from the new regulatory framework in electricity and the decrease in bond yields that caused an additional decline in returns of €10.2M yoy, in transmission. Both CAPEX and Transfers to RAB have displayed a positive evolution due to Portgás, standing at €13.9M (from €13.2M in 1Q17) and €2.3M (from €1.1M in 1Q17), respectively. Furthermore, Average RAB grew by 10.9% to €3,877.8M, again helped by the contribution of Portgás (€464.1M);
• Net Profit stood at €13.1M, 3.0% below the same period of 2017. The decrease was mainly driven by the growth in Amortizations, the Financial Result and the maintenance of the recognition of the extraordinary levy on the energy sector (€25.3M in 2018);
• Financial Result evolution (-€1.1M, to -€16.6M) was affected by the increase in Net Debt (€2,643.7M versus €2,543.5M in 1Q17), following the Portgás' acquisition (€530.3M). Furthermore, REN continued to fine-tune its cost of debt which was down to 2.3% from 2.6% in 1Q17;
• Recurrent Net Profit amounted to €38.4M, €2.5M (6.2%) below 1Q17's number;
• In 11th April 2018, Fitch reaffirmed REN's Rating at 'BBB', with a stable outlook.

RESULTS AT A GLANCE

€M	1Q18	1Q17	Δ%	Δ Abs.
EBITDA	128.4	123.7	3.8%	4.7
Financial Result	-16.6	-15.5	-7.2%	-1.1
Net Profit	13.1	13.5	-3.0%	-0.4
Recurrent Net Profit	38.4	40.9	-6.2%	-2.5
Average RAB	3,877.8	3,495.3	10.9%	382.5
CAPEX	13.9	13.2	5.2%	0.7
Net Debt	2,643.7	2,543.5	3.9%	100.2

PORTUGUESE PERCEIVED SOVEREIGN DEBT RISK

With a sustained downward trend

IN TRANSMISSION, RAB REMUNERATION FELL BY €10.0M

RESULTS PRESENTATION

1) Portgás accounted for asset returns using ERSE's ex-ante allowed return (6.40%). REN used the effective rate calculated using the 10-Year bond yields (6.68%).

OPEX variation was mostly explained by the acquisition of Portgás. External Supplies and Services includes €1.2M from Electrogas acquisition in 2017.

(1) Includes -Δ€0.8M of Other Operating Costs.

IN 1Q18, CORE OPEX WAS UP BY €1.9M (9.2%)

Without Portgás it went down by 7.9%

1Q17 €1.9M (9.2%) 1Q18 0.0 7.3 -0.2 23.1 -2.4 Forest clearing 19.5 Costs with NG transportation Core OPEX 3.6 OPEX ITC Other (1) mechanism 31.5 -1.2 -0.8 Costs with ERSE -3.6 Subsoil occupation levies(2) 24.2 Distribution CORE OPEX (€M) -2.4 Forest clearing Core OPEX 21.2 Other -0.5 Costs with ERSE -0.7 -0.8 Costs with NG transportation ITC(1) mechanism -0.2 OPEX 25.8

Transmission

(1) ITC - Inter Transmission System Operator Compensation for Transits;

(2) Related to Portgás.

RESULTS PRESENTATION EBITDA ROSE BY 3.8% Benefiting from the Portgás acquisition (€10.9M) 123.7 Δ OPEX contribution (3) 10.9 (n.m.) EBITDA 1Q17 EBITDA Portgás -10.2 (-18.7%) €4.7M (3.8%) EBITDA 1Q18 128.4 Δ Electrogas' Net Profit proportion 0.6 (10.1%) Δ Other 0.0 (0.6%) 4.2 (n.m.) Δ Recovery of amortizations -0.4 (-0.8%) Δ Other revenues from assets(2) Δ Asset remuneration (1) -0.4 (-20.5%) EBITDA (€M)

(1) Includes -Δ€0.2M of NG tariff smoothing effect (natural gas);

(2) Transmission business only;

(3) Includes €1.2M related to the one-off costs with Electrogas (in 1Q17) and Δ€0.7M of OPEX own works.

Average cost of debt decreased over the last twelve months (2.3% in 1Q18 vs 2.6% in 1Q17);

• FFO/Net Debt ratio went up to 11.8%.

• (1) Includes Δ€39.4M of positive tariff deviations.

• In the first quarter of 2018, REN displayed an improvement at EBITDA level, as a consequence of the purchase of Portgás;

• However, the lower asset remuneration resulting from the new regulation in electricity, the decrease in bond yields and the special levy on energy sector continued to penalize REN's results and brought the effective corporate tax rate to 39.6%. Furthermore, both Net Debt and Financial Result were affected by REN's acquisitions of Electrogas and Portgás, in 2017, but the average cost of debt maintained its downward trend;
• Tomorrow REN will announce to the market its strategic plan for the 2018-2021 period, at its "Capital Markets Day" event;
• This morning REN's AGM approved the payment of a dividend of 17.1 cents per share, in relation to its 2017 results (the current dividend yield is 7%).

DISCLAIMER

This presentation and all materials, documents and information used therein or distributed to investors in the context of this presentation do not constitute, or form part of, a public offer, private placement or solicitation of any kind by REN, or by any of REN's shareholders, to sell or purchase any securities issued by REN and its purpose is merely of informative nature and this presentation and all materials, documents and information used therein or distributed to investors in the context of this presentation may not be used in the future in connection with any offer in relation to securities issued by REN without REN's prior consent.

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