REN-Redes Energeticas Nacionais

Earnings Release • Nov 15, 2019

RESULTS REPORT 9M19

MAIN INDICATORS EBITDA for the period stood at €368.0M, 2.7% (€10.4M) lower than the same period of the previous year. As expected, this was mainly due to the decrease in rates of return, following the drop in the Portuguese bond yield and the reduction in the Regulated Asset Base;

Net Profit and Recurrent Net Profit amounted to €86.3M (-5.0%) and €110.7M (-1.6%), respectively. Financial Results (-€39.4M) impacted the results positively, benefiting from the decrease in Net Debt (-€57.4M) and the continuing decline in the average cost of debt (2.2% in 9M19, from 2.3% in 9M18). Taxes reached €42.0M, less 0.9% when compared with last year. Nevertheless, the payment of the extraordinary energy sector levy (CESE) penalized REN's results (€24.4M in 2019), raising the effective tax rate to 39.5%;

On October 01st , REN acquired the entire share capital of Transemel, for 168.6 million USD. This transaction was supported by debt. Since the announcement of this acquisition, all three major rating agencies have reaffirmed REN's rating at investment grade level. Despite this acquisition, Portugal continues to be REN's main target and natural market.

9M19 HIGHLIGHTS

€M	3Q19	9M19	9M18	Δ%	Δ Abs.
EBITDA	120.6	368.0	378.4	-2.7%	-10.4
Financial Results	-12.6	-39.4	-43.5	9.3%	4.0
Net Profit	35.3	86.3	90.9	-5.0%	-4.5
Recurrent Net Profit	35.3	110.7	112.5	-1.6%	-1.8
Average RAB	3,717.8	3,717.8	3,835.2	-3.1%	-117.3
CAPEX	60.4	110.3	67.2	64.1%	43.1
Net Debt	2,586.5	2,586.5	2,643.8	-2.2%	-57.4

CAPEX and RAB

€M	9M19	9M18	Δ%	Δ Abs.
Average RAB	3,717.8	3,835.2	-3.1%	-117.3
Electricity	2,026.4	2,094.9	-3.3%	-68.6
Land	231.9	244.5	-5.1%	-12.6
Natural gasT	990.0	1,035.2	-4.4%	-45.2
Natural gasD	469.5	460.5	2.0%	9.0
RAB end of period	3,666.7	3,771.8	-2.8%	-105.1
Electricity	1,998.6	2,055.8	-2.8%	-57.2
Land	227.2	239.8	-5.2%	-12.6
Natural gasT	970.0	1,015.2	-4.4%	-45.1
Natural gasD	470.8	461.1	2.1%	9.8
CAPEX	110.3	67.2	64.1%	43.1
Electricity	87.5	47.5	84.3%	40.0
Natural gasT	7.0	5.2	33.4%	1.7
Natural gasD	15.8	14.4	9.8%	1.4
Other	0.0	0.1	-65.2%	-0.1
RAB variation e.o.p.	-101.0	-126.9
Electricity	-54.1	-78.4
Land	-9.4	-9.4
Natural gasT	-40.0	-40.1
Natural gasD	2.4	1.1

CAPEX AND TRANSFERS TO RAB ROSE BY €43.1M AND €27.6M, RESPECTIVELY

CAPEX rose by 64.1% to €110.3M while Transfers to RAB increased by 84.8% to €60.1M. Both benefited from more investment in the electricity business, which represented 79.3%

• The 400/220kV substation of Fundão and the overhead line

• The overhead line Ponte de Lima – V. Nova de Famalicão, 400

• and 72.2% of the total, respectively;
• In electricity, the main projects on-going were:
  • Falagueira Fundão;
  • kV.
• equipment;
• densification, mostly for B2C.

In Natural Gas transportation and storage, investment was mainly focused on the refurbishment and upgrading of

Investments in Portgás targeted network expansion and

1) RoR is equal to the specific asset remuneration, divided by the average RAB.

(€M)

The decline in transmission assets impacted average RAB that was €117.3M lower than last year;

In the electricity transmission, the base rate of return (RoR) was down by 0.3p.p. to 4.9%. The electricity assets with premium declined by €34.2M YoY, while lands, the category with the lowest RoR (0.3%), was

In natural gas transportation, the average RAB decreased by €45.2M (RoR 5.4%) to €990.0M;

By year-end, electricity accounted for 54.5% of the average RAB, natural gas for 39.3% (Portgás included) and lands for the remaining 6.2%.

AVERAGE RAB DECREASED BY 3.1% Despite the €9.0M rise in Portgás

4

RAB REMUNERATION DECLINED BY 6.7% Following the reduction in RoR and RAB (excluding Portgás)

RAB REMUNERATION PORTGÁS

(€M)

OPERATIONAL COSTS (€M)

Regarding the transmission business, External Supplies and Services included higher forest clearing costs, as a result of more demanding legislation, and higher electricity costs in the LNG Terminal, due to higher activity; Regarding the natural gas distribution business, OPEX variation was positively impacted by ESS (-€2.5M), Personnel Costs (-€0.6M) and OOC (-€0.5M). 91.5 OPEX 9M18 Δ External Supplies and Services Δ Personnel Costs Portgás Δ Other Operating Costs OPEX 9M19 -3.5 (-23.4%) 3.1 (10.7%) 1.2 (3.2%) 0.6 (5.6%) 92.9 €1.4M (1.5%)

OPERATIONAL COSTS INCREASED BY €1.4M Of which €2.5M were pass-through

CORE OPEX WAS €1.1M LOWER YOY Portgás had a €3.6M positive evolution

8

(1) ITC - Inter Transmission System Operator Compensation for Transits; (2) Item related to Portgás.

Depreciations and amortizations dropped by 0.2% to €175.8M;

Income Tax declined by 0.9%, achieving €42.0M. The effective tax rate, excluding the levy, was 27.5%, while in 9M18 it was 26.7%;

Extraordinary levy (CESE) decreased by 4.0% to €24.4M, due to the

In 9M19, the Group was taxed at a Corporate Income Tax rate of 21%, increased by a municipal surcharge up to the maximum of 1.5% over the taxable profit; plus (i) a State surcharge of an additional 3% of taxable profit between €1.5M and €7.5M; (ii) an additional 5% of taxable profit in excess of €7.5M and up to €35.0M; and (iii) 9% over the taxable profit in excess of €35.0M. As a result, the maximum

-

• reduction in the levied regulated assets;
• aggregate tax rate was 31.5%;
• benefiting from a lower stock of debt.

Average cost of debt slightly decreased to 2.2%, from 2.3% in 9M18;

Similarly to the previous years Financial Results improved by 9.3%,

€M	9M19	9M18	Δ%	Δ Abs.
EBITDA	368.0	378.4	-2.7%	-10.4
Depreciations and amortizations	175.8	176.2	-0.2%	-0.4
Financial Results	-39.4	-43.5	9.3%	4.0
Profit before income tax and levy	152.8	158.7	-3.7%	-5.9
Taxes	42.0	42.4	-0.9%	-0.4
Extraordinary levy	24.4	25.4	-4.0%	-1.0
Net Profit	86.3	90.9	-5.0%	-4.5
Recurrent Net Profit	110.7	112.5	-1.6%	-1.8

BELOW EBITDA

Financial Results were strengthened by lower Net Debt and average cost of debt

NET DEBT REDUCED BY €66.6M TO €2,586.5M Reflecting a cash flow higher than Capex and financial needs

NET PROFIT (€M)

NET PROFIT DECLINED BY 5.0% TO €86.3M Despite better Financial Results (€4.0M)

In 9M19, the cost of REN's debt stood at 2.2% due to improvements in market conditions and REN's own risk profile that warrants its debt as investment grade by the three major rating agencies: S&P, Fitch and Moody's.

REN IS FUNDED OVER THE NEXT TWO YEARS The average debt maturity at the end of the period was 3.66 years

¹⁾ Value adjusted by interest accruals and hedging on yen denominated debt.

The total amount of fixed assets concessions related declined to

Investments and goodwill (1) increased to €380.9M from €355.3M at the end of 2018. This item includes goodwill, available-for-sale financial assets, derivative financial instruments, investments in associates

Receivables (2) related to trade and other receivables, deferred tax assets and current income tax recoverable, reached €371.8M in 9M19,

• €4,010.3M (this value includes investment subsidies);
• (including Electrogas) and other investments;
• decreasing from €444.4M at the end of 2018;
• versus €780.9M in 2018;
• deposits (€111.2M in 2018).

Other Assets (3) stood at €119.8M. This item consists of inventories, guarantee deposits, fixed assets and assets in progress (not RAB related);

Payables (4) include trade and other payables, deferred tax liabilities and income tax payable. These totalized €823.2M at the end of the period,

Other liabilities (5) stood at €126.7M. These include retirement and other benefit obligations, derivative financial instruments and guarantee

€M	9M19	2018
Fixed assets c. related	4,010.3	4,072.9
Investments and goodwill1	380.9	355.3
Tariff deviations	223.4	160.8
Receivables2	371.8	444.4
Cash	171.5	35.7
Other3	119.8	122.4
Total assets	5,277.7	5,191.6
Shareholders equity	1,428.2	1,463.8
Debt (end of period)	2,789.9	2,706.3
Provisions	8.8	8.9
Tariff deviations	100.9	120.4
Payables4	823.2	780.9
Other5	126.7	111.2
Total equity and liabilities	5,277.7	5,191.6

BALANCE SHEET

TARIFF DEVIATIONS

1) Value adjusted to include the amount to be received from the Fund for the Systemic Sustainability of the Energy Sector (FSSSE ): €25.8M in 2018 and €6.4M in 9M19; 2) Value adjusted to include the amount to be received from the FSSSE: €5.8M in 2018 and in 9M19.

The value of the tariff deviations is paid in full and with interest over a two year period from the moment it is created.

€M	9M19	2018
Electricity1)	41.1	16.6
Trading	157.9	128.0
2) Natural GasT	-60.5	-71.5
Natural Gas D	-3.7	-1.1
TOTAL	134.8	72.0

THE BALANCE OF TARIFF DEVIATIONS WAS €134.8M To be received from tariffs over the next two years

14

In 9M19, REN's total liquidity reached €1,204M, including credit facilities, loans, non-used commercial paper programmes, cash and bank deposits;

Bank borrowings were mainly represented by EIB loans (€369.1M);

The Group had credit lines negotiated and not used in the amount of €87.5M, maturing up to one year, which are automatically renewed periodically (if they are not resigned in the contractually specified period

REN also had seven active commercial paper programmes in the amount of

-

• for that purpose);
• €1,300.0M, of which €832.0M were available for use;
• consolidated equity with the total consolidated regulated assets).

REN's financial liabilities had the following main types of covenants: Cross Default, Pari Passu, Negative Pledge and Gearing (ratio of total

BORROWINGS

€M	Current	Non Current	TOTAL
Bonds	30.0	1,722.6	1,752.6
Bank borrowings	56.4	499.4	555.8
Commercial paper	468.0	0.0	468.0
Bank overdrafts	6.0	0.0	6.0
Finance lease	1.4	2.3	3.7
TOTAL	561.8	2,224.3	2,786.1
Accrued interest	29.5	0.0	29.5
Prepaid interest	2.7	-28.3	-25.6
TOTAL	593.9	2,196.0	2,789.9

DIVERSIFIED FUNDING SOURCES

SHARE PERFORMANCE REN's share price increased by 5.2% YTD in the first 9M of 2019

ANALYST RECOMMENDATIONS(1)

CMVM: MAIN PRESS RELEASES (from January 2019)

• Average Price target €2.73
• Upside/Downside(+/-) 5.0%

Jan-04: 2018-2027 PDIRGN Approval
Jan-07: 2019 Financial calendar
Jan-10: Constitutional Court decision regarding Special Energy Levy
Jan-21: Summary of annual information disclosed in 2018
Feb-13: Qualified shareholding from Great-West Lifeco
Feb-19: 2018-2027 PDIRT-E Approval
Mar-08: Qualified shareholding from The Capital Group Companies
Mar-21: 2018 Consolidated results
Apr-01: ERSE proposal for tariffs and prices for Natural Gas for the 2019-2020 gas year and parameters for the 2020-2023 regulatory period
Apr-03: Notice to convene the Annual General Shareholders Meeting and deliberation proposals

MARKET INFORMATION

Apr-03: Accounts reporting document referring to the financial year ended on 31st December 2018 - item 1 of the agenda for the general shareholders meeting

May-03: Resolutions approved at the general shareholders meeting

May-03: First 3 months 2019 consolidated results

May-09: Payment of dividends relating to the financial year of 2018

May-31: ERSE proposal for tariffs and prices for natural gas for the 2019-2020 gas year and parameters for the regulatory period between the years 2020 and 2023

Jul-23: Acquisition of Empresa de Transmisión Eléctrica Transemel S.A. (Chile)

Jul-25: 1H19 Consolidated results

*Inception to date (July 09th 2007).

REN END OF PERIOD	9M19	2018
Price (€)
Close	2.560	2.434
Average	2.530	2.458
High YTD	2.668	2.650
Low YTD	2.400	2.326
Variation YTD	5.2%	-1.8%
Market cap. (€M)	1,708	1,624
Number of shares	667,191,262	667,191,262
Own shares (mn)	3.9	3.9
Average Daily Volume YTD (€M)	1.5	2.4
Average Daily Volume YTD (th shares)	587	959
Performance indicators
Dividend yield	6.7%	7.0%
Total shareholder return YTD	12.6%	5.0%
Cumulative total return*
REN	108.9%	85.6%
PSI20	-39.7%	-45.1%
EuroStoxx Utilities	19.9%	-6.5%

REN'S TOTAL SHAREHOLDER RETURN WAS +12.6% (YTD)

APPENDIX

* NON RECURRENT ITEMS:

9M19: i) Extraordinary energy sector levy, as established in the 2019 State

budget law (€24.4M);

9M18: i) Extraordinary energy sector levy, as established in the 2018 State budget law (€25.4M); ii) one-off costs from the LPG sale, in July (€3.7M, €3.8M after taxes).

€M				9M19/9M18
	9M19	9M18	2018	Δ %	Δ Abs.
1) TOTAL REVENUES	557.5	523.0	726.9	6.6%	34.5
Revenues from assets	332.2	339.9	455.3	-2.3%	-7.8
Return on RAB	140.5	150.5	200.6	-6.6%	-10.0
Electricity	80.4	87.5	116.5	-8.2%	-7.2
Natural gas	40.1	42.9	57.1	-6.4%	-2.8
Portgás	20.1	20.1	27.0	-0.1%	0.0
Hydro land remuneration	0.0	0.2	0.0		-0.2
Lease revenues from hydro protection zone	0.5	0.5	0.7	-1.2%	0.0
Economic efficiency of investments	18.8	16.2	23.6	15.8%	2.6
Recovery of amortizations (net from subsidies)	159.0	159.1	212.4	-0.1%	-0.1
Subsidies amortization	13.3	13.5	17.9	-1.0%	-0.1
Revenues of OPEX	97.7	93.2	121.1	4.8%	4.5
Other revenues	17.4	23.4	28.6	-25.7%	-6.0
Construction revenues (IFRIC 12)	110.3	66.5	121.8	65.9%	43.8
2) OPEX	92.9	91.5	131.3	1.5%	1.4
Personnel costs	41.7	41.1	55.8	1.6%	0.6
External supplies and services	36.1	35.4	58.2	1.9%	0.7
Other operational costs	15.1	15.0	17.3	0.5%	0.1
3) Construction costs (IFRIC 12)	96.4	52.9	102.4	82.2%	43.5
4) Depreciations and amortizations	175.8	176.2	235.1	-0.2%	-0.4
5) Other	0.3	0.3	0.9	10.1%	0.0
6) EBIT	192.2	202.2	257.2	-4.9%	-10.0
7) Depreciations and amortizations	175.8	176.2	235.1	-0.2%	-0.4
8) EBITDA	368.0	378.4	492.3	-2.7%	-10.4
9) Depreciations and amortizations	175.8	176.2	235.1	-0.2%	-0.4
10) Financial result	-39.4	-43.5	-57.8	-9.3%	4.0
11) Income tax expense	42.0	42.4	58.5	-0.9%	-0.4
12) Extraordinary contribution on energy sector	24.4	25.4	25.3	-4.0%	-1.0
13) NET PROFIT	86.3	90.9	115.7	-5.0%	-4.5
14) Non recurrent items*	24.4	21.6	21.5	12.8%	2.8
15) RECURRENT NET PROFIT	110.7	112.5	137.2	-1.6%	-1.8

RESULTS BREAKDOWN

				9M19/9M18
€M	9M19 9M18		2018	Δ %	Δ Abs.
Other revenues	17.4	23.4	28.6	-25.7%	-6.0
Allowed incentives	1.1	2.5	2.9	-55.7%	-1.4
Interest on tariff deviation	0.4	0.1	0.0		0.3
Gains in related companies	0.0	4.0	4.0		-4.0
Telecommunication sales and services rendered	4.9	4.8	6.1	1.7%	0.1
Consultancy services and other services provided	1.4	2.8	3.0	-50.9%	-1.4
Other revenues*	9.6	9.1	12.5	4.7%	0.4
Other costs	15.1	15.0	17.3	0.5%	0.1
Costs with ERSE	8.3	7.7	7.2	8.2%	0.6
Other	6.8	7.3	10.0	-7.5%	-0.5

*Includes revenues related to Electrogas' Net Profit proportion (€5.7M in 9M19 and €5.1M in 9M18).

OTHER OPERATIONAL REVENUES AND COSTS BREAKDOWN

1) Includes Electricity and Enondas (wave energy concession).

€M	9M19	9M18		9M19/9M18
			2018	Δ %	Δ Abs.
1) REVENUES	356.7	321.2	451.0	11.0%	35.5
Revenues from assets	215.6	221.3	296.6	-2.6%	-5.7
Return on RAB	80.4	87.5	116.5	-8.2%	-7.2
Hydro land remuneration	0.0	0.2	0.0		-0.2
Lease revenues from hydro protection zone	0.5	0.5	0.7	-1.2%	0.0
Economic efficiency of investments	18.8	16.2	23.6	15.8%	2.6
Recovery of amortizations (net from subsidies)	107.0	107.8	143.7	-0.7%	-0.8
Subsidies amortization	9.0	9.1	12.1	-1.0%	-0.1
Revenues of OPEX	51.3	49.9	64.5	2.8%	1.4
Other revenues	2.3	2.6	4.3	-9.5%	-0.2
Interest on tariff deviation	0.1	0.3	0.4	-61.7%	-0.2
Other	2.2	2.3	3.9	-2.9%	-0.1
Construction revenues (IFRIC 12)	87.5	47.5	85.6	84.3%	40.0
2) OPEX	36.9	33.9	52.6	8.8%	3.0
Personnel costs	13.4	14.1	19.1	-4.5%	-0.6
External supplies and services	17.2	13.7	25.8	25.7%	3.5
Other operational costs	6.3	6.2	7.7	2.0%	0.1
3) Construction costs (IFRIC 12)	76.9	37.1	70.9	107.0%	39.7
4) Depreciations and amortizations	115.6	116.6	155.4	-0.8%	-0.9
5) Other	0.0	0.2	0.4		-0.2
6) EBIT (1 - 2 - 3 - 4 -5)	127.3	133.4	171.7	-4.6%	-6.1
7) Depreciations and amortizations	115.6	116.6	155.4	-0.8%	-0.9
8) EBITDA (6+7)	243.0	250.0	327.1	-2.8%	-7.0

EBITDA BREAKDOWN (ELECTRICITY 1 )

	9M19			9M19/9M18
€M		9M18	2018	Δ %	Δ Abs.
1) REVENUES	126.0	125.8	171.3	0.2%	0.3
Revenues from assets	86.2	89.0	118.5	-3.1%	-2.8
Return on RAB	40.1	42.9	57.1	-6.4%	-2.8
Recovery of amortizations (net from subsidies)	41.7	41.7	55.6	0.0%	0.0
Subsidies amortization	4.4	4.4	5.9	-0.1%	0.0
Revenues of OPEX	33.0	30.1	40.4	9.5%	2.9
Other revenues	-0.2	1.4	1.1		-1.6
Interest on tariff deviation*	-0.2	-0.1	-0.2	127.0%	-0.1
Consultancy services and other services provided	0.1	0.0	-0.3		0.1
Other	-0.1	1.5	1.6		-1.6
Construction revenues (IFRIC 12)	7.0	5.2	11.3	33.4%	1.7
2) OPEX	21.4	19.2	27.3	11.5%	2.2
Personnel costs	5.9	5.5	7.6	7.3%	0.4
External supplies and services	11.6	10.3	16.3	13.4%	1.4
Other operational costs	3.9	3.4	3.4	12.4%	0.4
3) Construction costs (IFRIC 12)	5.4	3.7	9.3	45.2%	1.7
4) Depreciations and amortizations	45.6	45.6	60.8	0.0%	0.0
5) Other	0.0	0.0	0.0		0.0
6) EBIT	53.6	57.2	73.9	-6.3%	-3.6
7) Depreciations and amortizations	45.6	45.6	60.8	0.0%	0.0
8) EBITDA	99.2	102.8	134.7	-3.5%	-3.6

EBITDA BREAKDOWN (NATURAL GAS TRANSPORTATION)

*A negative revenue is consistent with a negative tariff deviation.

€M 9M19 9M18 2018			9M19/9M18
				Δ %	Δ Abs.
1) REVENUES	59.6	62.7	87.9	-5.0%	-3.1
Revenues from assets	30.3	29.7	40.1	2.2%	0.6
Return on RAB	20.1	20.1	27.0	-0.1%	0.0
Recovery of amortizations (net from subsidies)	10.3	9.6	13.1	7.3%	0.7
Revenues of OPEX	13.3	13.1	16.3	1.6%	0.2
Other revenues	0.1	6.1	6.6	-98.3%	-6.0
Interest on tariff deviation	0.0	0.0	0.0	-45.5%	0.0
Adjustments previous years	-0.1	0.2	0.6
Gains in related companies*	0.0	4.0	4.0
Other services provided	0.1	1.4	1.5	-90.7%	-1.3
Other	0.1	0.6	0.6	-86.0%	-0.5
Construction revenues (IFRIC 12)	15.8	13.8	24.8	14.8%	2.0
2) OPEX	11.5	15.0	18.4	-23.4%	-3.5
Personnel costs	3.3	3.9	4.8	-14.4%	-0.6
External supplies and services	3.6	6.1	8.1	-40.9%	-2.5
Other operational costs	4.6	5.0	5.5	-9.4%	-0.5
3) Construction costs (IFRIC 12)	14.1	12.0	22.2	17.0%	2.0
4) Depreciations and amortizations	10.4	9.9	13.4	5.2%	0.5
5) Other	0.0	-0.1	0.2		0.1
6) EBIT	23.6	25.8	33.7	-8.7%	-2.2
7) Depreciations and amortizations	10.4	9.9	13.4	5.2%	0.5
8) EBITDA	34.0	35.7	47.1	-4.8%	-1.7

* One -off related to the sale of LPG business .

EBITDA BREAKDOWN (PORTGÁS)

* Includes REN SGPS, REN Serviços, REN Telecom, REN Trading, REN PRO, Aerio Chile SPA and REN Finance B.V.

	9M19			9M19/9M18
€M		9M18	2018	Δ %	Δ Abs.
1) TOTAL REVENUES	15.1	13.3	16.6	13.9%	1.8
Other revenues	15.1	13.3	16.6	13.9%	1.8
Allowed incentives	1.1	2.5	2.9	-55.7%	-1.4
Interest on tariff deviation	0.5	-0.1	-0.1		0.6
Telecommunication sales and services rendered	4.9	4.8	6.1	1.7%	0.1
Consultancy services and other services provided	1.0	1.4	1.9	-30.8%	-0.4
Other	7.6	4.6	5.9	65.4%	3.0
2) OPEX	23.1	23.3	33.0	-1.3%	-0.3
Personnel costs	19.0	17.6	24.3	8.2%	1.4
External supplies and services	3.7	5.4	8.0	-32.1%	-1.7
Other operational costs	0.3	0.3	0.7	2.1%	0.0
3) Construction costs (IFRIC 12)	0.0	0.0	0.0		0.0
4) Depreciations and amortizations	4.1	4.1	5.5	-0.8%	0.0
5) Other	0.3	0.1	0.3		0.2
6) EBIT	-12.3	-14.3	-22.1	-13.9%	2.0
7) Depreciations and amortizations	4.1	4.1	5.5	-0.8%	0.0
8) EBITDA	-8.2	-10.2	-16.6	-19.3%	2.0

EBITDA BREAKDOWN (OTHER* )

* Total costs;

** Transfers to RAB include direct acquisitions RAB related.

				9M19/9M18
€M	9M19 9M18	2018	Δ %	Δ Abs.
CAPEX*	110.3	67.2	121.9	64.1%	43.1
Electricity	87.5	47.5	85.6	84.3%	40.0
Natural gasT	7.0	5.2	11.3	33.4%	1.7
Natural gasD	15.8	14.4	24.9	9.8%	1.4
Other	0.0	0.1	0.1	-65.2%	-0.1
Transfers to RAB**	60.1	32.5	88.5	84.8%	27.6
Electricity	43.4	19.4	53.8	124.1%	24.0
Natural gasT	1.8	1.7	11.0	6.0%	0.1
Natural gasD	15.0	11.5	23.7	30.0%	3.5
Average RAB	3,717.8	3,835.2	3,832.0	-3.1%	-117.3
Electricity	2,026.4	2,094.9	2,091.9	-3.3%	-68.6
With premium	1,092.6	1,126.8	1,127.0	-3.0%	-34.2
Without premium	933.8	968.1	964.9	-3.5%	-34.4
Land	231.9	244.5	242.9	-5.1%	-12.6
Natural gasT	990.0	1,035.2	1,032.6	-4.4%	-45.2
Natural gasD	469.5	460.5	464.5	2.0%	9.0
RAB e.o.p.	3,666.7	3,771.8	3,767.7	-2.8%	-105.1
Electricity	1,998.6	2,055.8	2,052.7	-2.8%	-57.2
Land	227.2	239.8	236.6	-5.2%	-12.6
Natural gasT	970.0	1,015.2	1,010.0	-4.4%	-45.1
Natural gasD	470.8	461.1	468.4	2.1%	9.8
RAB's variation e.o.p.	-101.0	-126.9	-131.0
Electricity	-54.1	-78.4	-81.5
Land	-9.4	-9.4	-12.6
Natural gasT	-40.0	-40.1	-45.2
Natural gasD	2.4	1.1	8.4

				9M19/9M18
€M	9M19	9M18	2018	Δ %	Δ Abs.
RAB's remuneration	141.0	151.2	201.3	-6.7%	-10.1
Electricity	80.4	87.5	116.5	-8.2%	-7.2
With premium	46.2	50.0	66.7	-7.7%	-3.8
Without premium	34.2	37.5	49.9	-8.8%	-3.3
Land	0.5	0.7	0.7	-25.7%	-0.2
Natural gasT	40.1	42.9	57.1	-6.4%	-2.8
Natural gasD	20.1	20.1	27.0	-0.1%	0.0
RoR's RAB	5.1%	5.3%	5.3%		-0.2p.p.
Electricity	5.3%	5.6%	5.6%		-0.3p.p.
With premium	5.6%	5.9%	5.9%		-0.3p.p.
Without premium	4.9%	5.2%	5.2%		-0.3p.p.
Land	0.3%	0.4%	0.3%		-0.1p.p.
Natural gasT	5.4%	5.5%	5.5%		-0.1p.p.
Natural gasD	5.7%	5.8%	5.8%		-0.1p.p.

CAPEX AND RAB

RATING	Long term	Short term	Outlook	Date
Moody's	Baa3	-	Stable	24/07/2019
Standard & Poor's	BBB	A-2	Stable	31/07/2019
Fitch	BBB	F3	Stable	02/08/2019

	9M19	9M18	2018
Net Debt (€M)	2,586.5	2,643.8	2,653.1
Average cost	2.2%	2.3%	2.2%
Average maturity (years)	3.7	4.6	4.3
Net Debt / EBITDA	5.3x	5.3x	5.4x

DEBT BREAKDOWN

Funding sources
Bond issues	63%	66%	65%
EIB	13%	16%	15%
Loans	7%	13%	13%
Other	17%	6%	7%

TYPE
Float	42%	38%	38%
Fixed	58%	62%	62%

DEBT

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS Financial position (thousands of euros)

29

667,191	667,191
-10,728	-10,728
116,809	116,809
322,789	326,906
251,388	253,505
-5,561	-5,561
86,324	115,715
1,428,212	1,463,837

	Sep 2019	Sep 2018		Sep 2019	Sep 2018
ASSETS			EQUITY
Non-current assets			Shareholders' equity:
Property, plant and equipment	445	561	Share capital	667,191	667,191
Goodwill	3,594	3,877	Own shares	-10,728	-10,728
Intangible assets	4,127,262	4,192,619	Share premium	116,809	116,809
Investments in associates and joint ventures	178,083	167,841	Reserves	322,789	326,906
Investments in equity instruments at fair value through other comprehensive income	159,455	162,552	Retained earnings	251,388	253,505
Derivative financial instruments	39,717	21,010	Other changes in equity	-5,561	-5,561
Other financial assets	64	45	Net profit for the year	86,324	115,715
Trade and other receivables	188,586	50,246	TOTAL EQUITY	1,428,212	1,463,837
Deferred tax assets	88,863	92,495
	4,786,069	4,691,247	LIABILITIES
Current assets			Non-current liabilities
Inventories	2,343	2,095	Borrowings	2,195,961	2,274,939
Trade and other receivables	302,305	427,126	Liability for retirement benefits and others	92,885	98,288
Current income tax recoverable	15,496	35,371	Derivative financial instruments	33,794	12,952
Cash and cash equivalents	171,474	35,735	Provisions	8,796	8,852
	491,619	500,327	Trade and other payables	361,837	367,743
			Deferred tax liabilities	127,302	113,644
TOTAL ASSETS	5,277,688	5,191,574		2,820,575	2,876,418
			Current liabilities

Deferred tax liabilities	127,302	113,644
Current liabilities
Borrowings	593,934	431,401
Trade and other payables	434,967	419,917
	1,028,900	851,319
TOTAL LIABILITIES	3,849,475	3,727,737

CONSOLIDATED STATEMENTS

Profit and loss (thousands of euros)

	Sep 2019	Sep 2018
Sales	51	96
Services rendered	419,378	427,477
Revenue from construction of concession assets	110,270	66,479
Gains / (losses) from associates and joint ventures	7,499	4,540
Other operating income	20,143	24,737
Operating income	557,341	523,329
Cost of goods sold	-539	-1,022
Cost with construction of concession assets	-96,362	-52,896
External supplies and services	-36,406	-35,770
Personnel costs	-41,412	-40,731
Depreciation and amortizations	-175,753	-176,191
Provisions	1	-57
Impairments	-283	-199
Other expenses	-14,514	-13,951
Operating costs	-365,269	-320,816
Operating results	192,072	202,513
Financial costs	-50,499	-53,232
Financial income	5,805	4,460
Investment income - dividends	5,377	4,947
Financial results	-39,317	-43,825
Profit before income tax and ESEC	152,755	158,688
Income tax expense	-42,042	-42,421
Energy sector extraordinary contribution (ESEC)	-24,390	-25,398
Net profit for the year	86,324	90,868
Attributable to:
Equity holders of the Company	86,324	90,868
Non-controlled interest Consolidated profit for the year	0 86,324	0 90,868
Earnings per share (expressed in euro per share)	0.13	0.14

(a) These amounts include payments and receipts relating to activities in which the Group acts as agent, income and costs being reversed in the consolidated statement of profit and loss.

CONSOLIDATED STATEMENTS Cash flow (thousands of euros)

	Sep 2019	Sep 2018
Cash flow from operating activities
Cash receipts from customers	1,794,353	1,799,528	a
Cash paid to suppliers	-1,381,425	-1,301,250	a
Cash paid to employees	-54,634	-52,832
Income tax received/ paid	-883	-84,402
Other receipts/ (payments) relating to operating activities	-36,493	763
Net cash flows from operating activities (1)	320,917	361,807
Cash flow from investing activities
Receipts related to:
Investments in associates	292	0
Property, plant and equipment	0	7
Other financial assets	0	4,030
Investment grants	6,283	5,572
Interests and other similar income	2 4	8 5
Dividends	8,070	8,393
Payments related to:
Financial investments	0	-12
Property, plant and equipment	-73	-152
Intangible assets - Concession assets	-105,393	-111,558
Net cash flow used in investing activities (2)	-90,797	-93,634
Cash flow from financing activities
Receipts related to:
Borrowings	3,938,550	1,849,999
Payments related to:
Borrowings	-3,882,722	-1,993,601
Interests and other similar expense	-41,129	-45,434
Dividends	-113,426	-113,426
Net cash from/ (used in) financing activities (3)	-98,726	-302,462
Net (decrease)/increase in cash and cash equivalents (1)+(2)+(3)	131,394	-34,289
Effect of exchange rates	-28	-90
Cash and cash equivalents at the beginning of the year	34,096	60,448
Cash and cash equivalents at the end of the period	165,463	26,070
Detail of cash and cash equivalents
Cash	2 6	2 5
Bank overdrafts	-6,011	-1,546
Bank deposits	171,448	27,591
	165,463	26,070

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.

Visit our web site at www.ren.pt or contact us:

Ana Fernandes – Head of IR Alexandra Martins Telma Mendes

Av. EUA, 55 1749-061 Lisboa Phone number: +351 210 013 546 ir@ren.pt