REN-Redes Energeticas Nacionais

Earnings Release • May 3, 2019

RESULTS REPORT 1Q19

MAIN INDICATORS

The first quarter of 2019 ended with EBITDA reaching €125.3M, a decrease of 2.4%. The main reason for this fall was lower assets' remuneration. Natural gas distribution business contributed with an additional €0.5M versus last

Despite the decrease in EBITDA, Net Profit amounted to €13.2M, which was in line with what REN presented in

For this stability in Net Profit, there were positive contributions from Financial Results, that improved by €1.1M, reaching -€15.5M, from the extraordinary levy (CESE), with a €0.9M decrease, and from taxes (-€1.0M). The effective tax rate, excluding the levy, was 26.6% while

• year;
• 1Q18;
• in 1Q18 it was 27.7%;
• 2.3%.

Recurrent Net Profit got to €37.6M, -2.0% than last year;

Net Debt decreased to €2,613.9M (-€29.8M) year on year. The average cost of debt remained mostly unchanged at

1Q19 HIGHLIGHTS

€M	1Q19	1Q18	Δ%	Δ Abs.
EBITDA	125.3	128.4	-2.4%	-3.0
Financial Results	-15.5	-16.6	6.8%	1.1
Net Profit	13.2	13.1	1.3%	0.2
Recurrent Net Profit	37.6	38.4	-2.0%	-0.8
Average RAB	3,743.0	3,877.8	-3.5%	-134.7
CAPEX	16.8	13.9	21.1%	2.9
Net Debt	2,613.9	2,643.7	-1.1%	-29.8

CAPEX and RAB

€M	1Q19	1Q18	Δ%	Δ Abs.
Average RAB	3,743.0	3,877.8	-3.5%	-134.7
Electricity	2,036.9	2,117.8	-3.8%	-80.9
Land	235.1	247.6	-5.1%	-12.6
Natural gasT	1,003.0	1,048.3	-4.3%	-45.3
Natural gasD	468.1	464.1	0.9%	4.0
RAB end of period	3,718.1	3,856.9	-3.6%	-138.9
Electricity	2,020.8	2,101.4	-3.8%	-80.6
Land	233.5	246.1	-5.1%	-12.6
Natural gasT	996.0	1,041.3	-4.3%	-45.3
Natural gasD	467.8	468.1	-0.1%	-0.4
CAPEX	16.8	13.9	21.1%	2.9
Electricity	12.1	8.7	39.1%	3.4
Natural gasT	1.0	1.3	-27.6%	-0.4
Natural gasD	3.7	3.8	-2.6%	-0.1
Other	0.0	0.0		0.0
RAB variation e.o.p.	-49.6	-41.7
Electricity	-31.9	-32.8
Land	-3.1	-3.1
Natural gasT	-14.0	-13.9
Natural gasD	-0.6	8.1

CAPEX INCREASED BY €2.9M TO €16.8M

In 1Q19, the electricity sector benefited from the construction of a submarine cable (€1.2M)

CAPEX rose to €16.8M, €2.9M more than in 1Q18, with higher investments being deployed in the electricity business;

Within the scope of electricity transmission infrastructures, one new 400 kV line bay was concluded at the Tavira substation to link the Solara 4 photovoltaic park;

Within Natural Gas transportation and storage, investment was mainly focused on the refurbishment of equipment;

Investments in Portgás targeted network expansion and

-

• densification, mostly for B2C.

(€M)

Average RAB decreased by €134.7M year-on-year, penalized by the negative trend of natural gas transportation and electricity transmission;

In the electricity transmission, the base rate of return (RoR) decreased by 0.1p.p. to 5.1%. The electricity with premium declined by €33.0M YoY, while lands, the category with the lowest RoR (0.3%), was down by

In natural gas transportation, the average RAB decreased by €45.3M (RoR 5.4%) to €1,003.0M. On st ERSE made public some parameters for the 2020-2023 gas regulatory framework. They proposed that for an average ten-year bond yield of 1.5% the rate of return shall be 5.0%. The new rules will be set for four years instead of the former three;

By year-end, electricity accounted for 54.4% of the average RAB, natural gas for 39.3% (Portgás included) and lands for the remaining 6.3%.

AVERAGE RAB WAS 3.5% BELOW 1Q18 Positive evolution of Portgás (€4.0M)

EBITDA STOOD AT €125.3M (-2.4% YOY)

partially offset by the growth in Portgás (€0.5M)

RAB REMUNERATION DECLINED BY 5.4% With lower RoR and RAB (Electricity and NG^T )

RAB REMUNERATION PORTGÁS

(€M)

OPERATIONAL COSTS (€M)

Regarding the transmission business, OPEX variation was positively impacted by the €0.7M

Regarding natural gas distribution business, OPEX variation was positively impacted by ESS (-€0.6M), Personnel Costs (-€0.2M) and OOC (-€0.05M).

OPEX IMPROVED BY 3.1%, TO €30.5M On the back of a small reduction in ESS

7

CONTROLLABLE COSTS DECLINED BY 2.6% YOY Mainly driven by the favorable evolution of Portgás

8

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

Depreciations and amortizations decreased by 0.2% to €58.5M;

Income Tax declined by 6.8%, achieving €13.7M. The effective tax rate, excluding the levy, was 26.6% while in 1Q18 it was 27.7%;

Extraordinary levy (CESE) also decreased by 3.7% to €24.4M, as a

In 1Q19, 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

-

• result of the reduction in the levied regulated assets;
• aggregate tax rate was 31.5%;
• 1Q18;
• benefiting from lower stock.

Average cost of debt slightly decreased to 2.27%, from 2.30% in

Similarly to the previous years Financial Results improved by 6.8%,

€M	1Q19	1Q18	Δ%	Δ Abs.
EBITDA	125.3	128.4	-2.4%	-3.0
Depreciations and amortizations	58.5	58.7	-0.2%	-0.1
Financial Results	-15.5	-16.6	6.8%	1.1
Profit before income tax and levy	51.3	53.1	-3.3%	-1.8
Taxes	13.7	14.7	-6.8%	-1.0
Extraordinary levy	24.4	25.3	-3.7%	-0.9
Net Profit	13.2	13.1	1.3%	0.2
Recurrent Net Profit	37.6	38.4	-2.0%	-0.8

BELOW EBITDA

Better financials supported by a decline in Net Debt

(€M)

Financial Results contributed with €1.1M

In 1Q19, the cost of REN's debt stood at 2.3% 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.

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

REN IS FUNDED OVER THE NEXT TWO YEARS The average debt maturity at the end of the period was 4.24 years

The total amount of fixed assets concessions related declined to

Investments and goodwill (1) increased to €357.3M 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 €534.3M in 1Q19, increasing

• €4,031.5M (this value includes investment subsidies);
• (including Electrogas) and other investments;
• from €444.4M at the end of 2018;
• versus €780.9M in 2018;
• deposits (€111.2M in 2018).

Other Assets (3) stood at €121.8M. 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 €842.4M at the end of the period,

Other liabilities (5) stood at €117.1M. These include retirement and other benefit obligations, derivative financial instruments and guarantee

€M	1Q19	2018
Fixed assets c. related	4,031.5	4,072.9
Investments and goodwill1	357.3	355.3
Tariff deviations	150.0	160.8
Receivables2	534.3	444.4
Cash	20.5	35.7
Other3	121.8	122.4
Total assets	5,215.6	5,191.6
Shareholders equity	1,472.7	1,463.8
Debt (end of period)	2,656.3	2,706.3
Provisions	8.8	8.9
Tariff deviations	118.2	120.4
Payables4	842.4	780.9
Other5	117.1	111.2
Total equity and liabilities	5,215.6	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 €19.3M in 1Q19; 2) Value adjusted to include the amount to be received from the FSSSE: €5.8M in 2018 and in 1Q19.

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	1Q19	2018
Electricity1)	13.6	16.6
Trading	115.3	128.0
2) Natural GasT	-64.7	-71.5
Natural Gas D	-7.2	-1.1
TOTAL	57.0	72.0

THE BALANCE OF TARIFF DEVIATIONS WAS €57.0M To be received from tariffs over the next two years

In 1Q19, REN's total liquidity reached €894M, including credit facilities, loans, non-used commercial paper programmes, cash and bank deposits;

Bank borrowings were mainly represented by EIB loans (€410.8M);

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 five active commercial paper programmes in the amount of

-

• for that purpose);
• €1,050M, of which €738M 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		1,712.5 1,742.5
Bank borrowings	50.2	555.7	605.8
Commercial paper	312.0	0.0	312.0
Bank overdrafts	0.3	0.0	0.3
Finance lease	1.3	2.5	3.9
TOTAL	393.9		2,270.7 2,664.6
Accrued interest	19.1	0.0	19.1
Prepaid interest	-6.2	-21.2	-27.3
TOTAL	406.7		2,249.6 2,656.3

DIVERSIFIED FUNDING SOURCES

SHARE PERFORMANCE In 1Q19, REN's share price increased by 4.4% YTD

ANALYST RECOMMENDATIONS(1)

CMVM: MAIN PRESS RELEASES (from January 2019)

• Average Price target €2.63
• Upside/Downside(+/-) 8.5%

• 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

MARKET INFORMATION

*Inception to date (July 09th 2007).

REN END OF PERIOD	1Q19	2018
Price (€)
Close	2.542	2.434
Average	2.593	2.458
High YTD	2.668	2.650
Low YTD	2.448	2.326
Variation YTD	4.4%	-1.8%
Market cap. (€M)	1,696	1,624
Number of shares	667,191,262	667,191,262
Own shares (mn)	3.9	3.9
Average Daily Volume (€M)	1.6	2.4
Average Daily Volume (th shares)	617	959
Performance indicators
Dividend yield	6.7%	7.0%
Total shareholder return YTD	4.4%	5.0%
Cumulative total return*
REN	93.8%	85.6%
PSI20	-39.5%	-45.1%
EuroStoxx Utilities	4.3%	-6.5%

REN'S TOTAL SHAREHOLDER RETURN WAS +4.4% (YTD)

APPENDIX

* NON RECURRENT ITEMS:

1Q19: i) Extraordinary energy sector levy, as established in the 2019 State budget law (€24.4M);

1Q18: i) Extraordinary energy sector levy, as established in the 2018 State budget law (€25.3M).

€M		1Q18	2018	1Q19/1Q18
	1Q19			Δ %	Δ Abs.
1) TOTAL REVENUES	168.3	169.5	726.9	-0.7%	-1.2
Revenues from assets	111.9	114.2	455.3	-2.0%	-2.3
Return on RAB	48.2	51.0	200.6	-5.4%	-2.7
Electricity	28.0	29.7	116.5	-5.6%	-1.7
Natural gas	13.5	14.5	57.1	-6.7%	-1.0
Portgás	6.7	6.8	27.0	-1.4%	-0.1
Hydro land remuneration	0.0	0.1	0.0		-0.1
Lease revenues from hydro protection zone	0.2	0.2	0.7	-1.2%	0.0
Economic efficiency of investments	6.3	5.4	23.6	15.8%	0.9
Recovery of amortizations (net from subsidies)	52.8	53.1	212.4	-0.5%	-0.3
Subsidies amortization	4.5	4.5	17.9	-0.9%	0.0
Revenues of OPEX	33.4	33.6	121.1	-0.6%	-0.2
Other revenues	6.2	7.8	28.6	-21.4%	-1.7
Construction revenues (IFRIC 12)	16.8	13.9	121.8	21.1%	2.9
2) OPEX	30.5	31.5	131.3	-3.1%	-1.0
Personnel costs	13.6	13.4	55.8	1.6%	0.2
External supplies and services	9.4	10.7	58.2	-11.9%	-1.3
Other operational costs	7.5	7.4	17.3	1.3%	0.1
3) Construction costs (IFRIC 12)	12.3	9.7	102.4	27.8%	2.7
4) Depreciations and amortizations	58.5	58.7	235.1	-0.2%	-0.1
5) Other	0.1	0.0	0.9		0.1
6) EBIT	66.8	69.7	257.2	-4.2%	-2.9
7) Depreciations and amortizations	58.5	58.7	235.1	-0.2%	-0.1
8) EBITDA	125.3	128.4	492.3	-2.4%	-3.0
9) Depreciations and amortizations	58.5	58.7	235.1	-0.2%	-0.1
10) Financial result	-15.5	-16.6	-57.8	6.8%	1.1
11) Income tax expense	13.7	14.7	58.5	-6.8%	-1.0
12) Extraordinary contribution on energy sector	24.4	25.3	25.3	-3.7%	-0.9
13) NET PROFIT	13.2	13.1	115.7	1.3%	0.2
14) Non recurrent items*	24.4	25.3	21.5	-3.7%	-0.9
15) RECURRENT NET PROFIT	37.6	38.4	137.2	-2.0%	-0.8

RESULTS BREAKDOWN

			1Q19/1Q18
			Δ %	Δ Abs.
6.2	7.8	28.6	-21.4%	-1.7
0.7	2.2	2.9	-69.3%	-1.5
0.1	0.1	0.0	56.3%	0.0
0.0	0.0	4.0		0.0
1.5	1.6	6.1	-3.8%	-0.1
0.1	1.3	3.0	-89.4%	-1.2
3.7	2.7	12.5	38.6%	1.0
7.5	7.4	17.3	1.3%	0.1
2.6	2.4	7.2	5.0%	0.1
4.9	4.9	10.0	-0.5%	0.0
	1Q19	1Q18	2018

*Includes revenues related to Electrogas' Net Profit proportion (€1.9M in 1Q19 and €1.4M in 1Q18).

OTHER OPERATIONAL REVENUES AND COSTS BREAKDOWN

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

		1Q18		1Q19/1Q18
€M	1Q19		2018	Δ %	Δ Abs.
1) REVENUES	102.7	101.6	451.0	1.1%	1.1
Revenues from assets	73.0	74.2	296.6	-1.6%	-1.2
Return on RAB	28.0	29.7	116.5	-5.6%	-1.7
Hydro land remuneration	0.0	0.1	0.0		-0.1
Lease revenues from hydro protection zone	0.2	0.2	0.7	-1.2%	0.0
Economic efficiency of investments	6.3	5.4	23.6	15.8%	0.9
Recovery of amortizations (net from subsidies)	35.6	35.9	143.7	-0.7%	-0.3
Subsidies amortization	3.0	3.0	12.1	-1.3%	0.0
Revenues of OPEX	16.7	17.1	64.5	-2.1%	-0.4
Other revenues	0.9	1.6	4.3	-44.7%	-0.7
Interest on tariff deviation	0.0	0.1	0.4	-61.7%	-0.1
Other	0.8	1.5	3.9	-43.6%	-0.6
Construction revenues (IFRIC 12)	12.1	8.7	85.6	39.1%	3.4
2) OPEX	10.5	10.6	52.6	-0.5%	0.0
Personnel costs	4.4	4.6	19.1	-3.3%	-0.2
External supplies and services	4.1	4.1	25.8	0.8%	0.0
Other operational costs	2.0	1.9	7.7	3.6%	0.1
3) Construction costs (IFRIC 12)	8.7	5.4	70.9	60.6%	3.3
4) Depreciations and amortizations	38.5	38.8	155.4	-0.8%	-0.3
5) Other	0.0	0.0	0.4		0.0
6) EBIT (1 - 2 - 3 - 4 -5)	44.9	46.7	171.7	-3.8%	-1.8
7) Depreciations and amortizations	38.5	38.8	155.4	-0.8%	-0.3
8) EBITDA (6+7)	83.5	85.6	327.1	-2.4%	-2.1

EBITDA BREAKDOWN (ELECTRICITY 1 )

				1Q19/1Q18
€M	1Q19	1Q18	2018	Δ %	Δ Abs.
1) REVENUES	39.3	41.1	171.3	-4.3%	-1.8
Revenues from assets	28.9	29.9	118.5	-3.3%	-1.0
Return on RAB	13.5	14.5	57.1	-6.7%	-1.0
Recovery of amortizations (net from subsidies)	13.9	13.9	55.6	-0.2%	0.0
Subsidies amortization	1.5	1.5	5.9	-0.1%	0.0
Revenues of OPEX	9.5	9.8	40.4	-2.6%	-0.3
Other revenues	-0.1	0.1	1.1		-0.1
Interest on tariff deviation	-0.1	0.0	-0.2		-0.1
Consultancy services and other services provided	0.0	0.0	-0.3		0.0
Other	0.0	0.1	1.6	-38.2%	0.0
Construction revenues (IFRIC 12)	1.0	1.3	11.3	-28.0%	-0.4
2) OPEX	6.4	6.1	27.3	4.8%	0.3
Personnel costs	1.9	1.8	7.6	4.2%	0.1
External supplies and services	3.3	3.1	16.3	6.0%	0.2
Other operational costs	1.2	1.2	3.4	2.3%	0.0
3) Construction costs (IFRIC 12)	0.5	0.9	9.3	-49.9%	-0.5
4) Depreciations and amortizations	15.2	15.2	60.8	-0.1%	0.0
5) Other	0.0	0.0	0.0		0.0
6) EBIT	17.3	18.9	73.9	-8.2%	-1.6
7) Depreciations and amortizations	15.2	15.2	60.8	-0.1%	0.0
8) EBITDA	32.5	34.1	134.7	-4.6%	-1.6

EBITDA BREAKDOWN (NATURAL GAS TRANSPORTATION)

€M	1Q19 1Q18 2018		1Q19/1Q18
				Δ %	Δ Abs.
1) REVENUES	20.9	21.4	87.9	-2.1%	-0.5
Revenues from assets	10.0	10.1	40.1	-0.9%	-0.1
Return on RAB	6.7	6.8	27.0	-1.4%	-0.1
Recovery of amortizations (net from subsidies)	3.3	3.3	13.1	0.0%	0.0
Revenues of OPEX	7.2	6.8	16.3	6.1%	0.4
Other revenues	0.1	0.7	6.6	-92.7%	-0.7
Interest on tariff deviation	0.0	0.0	0.0	45.4%	0.0
Adjustments previous years	0.0	-0.1	0.6		0.1
Gains in related companies*	0.0	0.0	4.0		0.0
Other services provided	0.0	0.7	1.5	-93.5%	-0.7
Other	0.0	0.0	0.6	-58.7%	0.0
Construction revenues (IFRIC 12)	3.7	3.8	24.8	-2.7%	-0.1
2) OPEX	6.4	7.3	18.4	-12.0%	-0.9
Personnel costs	1.1	1.3	4.8	-15.3%	-0.2
External supplies and services	1.2	1.8	8.1	-34.9%	-0.6
Other operational costs	4.1	4.2	5.5	-1.1%	0.0
3) Construction costs (IFRIC 12)	3.2	3.3	22.2	-4.0%	-0.1
4) Depreciations and amortizations	3.5	3.3	13.4	5.3%	0.2
5) Other	0.0	-0.1	0.2		0.1
6) EBIT	7.9	7.6	33.7	4.0%	0.3
7) Depreciations and amortizations	3.5	3.3	13.4	5.3%	0.2
8) EBITDA	11.4	10.9	47.1	4.4%	0.5

* 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.

€M		1Q18	2018	1Q19/1Q18
	1Q19			Δ %	Δ Abs.
1) TOTAL REVENUES	5.3	5.5	16.6	-3.2%	-0.2
Other revenues	5.3	5.5	16.6	-3.2%	-0.2
Allowed incentives	0.7	2.2	2.9	-69.3%	-1.5
Interest on tariff deviation	0.2	0.0	-0.1		0.2
Telecommunication sales and services rendered	1.5	1.6	6.1	-3.8%	-0.1
Consultancy services and other services provided	0.1	0.6	1.9	-84.0%	-0.5
Other	2.8	1.2	5.9		1.7
Construction revenues (IFRIC 12)	0.0	0.0	0.0		0.0
2) OPEX	7.2	7.6	33.0	-4.5%	-0.3
Personnel costs	6.2	5.7	24.3	8.4%	0.5
External supplies and services	0.9	1.7	8.0	-50.3%	-0.9
Other operational costs	0.2	0.1	0.7	42.4%	0.0
3) Construction costs (IFRIC 12)	0.0	0.0	0.0		0.0
4) Depreciations and amortizations	1.4	1.3	5.5	2.8%	0.0
5) Other	0.1	0.1	0.3	-1.1%	0.0
6) EBIT	-3.4	-3.5	-22.1	-3.7%	0.1
7) Depreciations and amortizations	1.4	1.3	5.5	2.8%	0.0
8) EBITDA	-2.0	-2.2	-16.6	-7.6%	0.2

EBITDA BREAKDOWN (OTHER* )

* Total costs;

** Transfers to RAB include direct acquisitions RAB related.

					1Q19/1Q18
€M	1Q19	1Q18	2018	Δ %	Δ Abs.
CAPEX*	16.8	13.9	121.9	21.1%	2.9
Electricity	12.1	8.7	85.6	39.1%	3.4
Natural gasT	1.0	1.3	11.3	-27.6%	-0.4
Natural gasD	3.7	3.8	24.9	-2.6%	-0.1
Other	0.0	0.0	0.1		0.0
Transfers to RAB**	3.7	2.2	88.5	66.4%	1.5
Electricity	0.8	0.1	53.8		0.7
Natural gasT	-0.1	0.0	11.0		-0.1
Natural gasD	2.9	2.1	23.7	40.4%	0.8
Average RAB	3,743.0	3,877.8	3,832.0	-3.5%	-134.7
Electricity	2,036.9	2,117.8	2,091.9	-3.8%	-80.9
With premium	1,102.3	1,135.3	1,127.0	-2.9%	-33.0
Without premium	934.5	982.5	964.9	-4.9%	-48.0
Land	235.1	247.6	242.9	-5.1%	-12.6
Natural gasT	1,003.0	1,048.3	1,032.6	-4.3%	-45.3
Natural gasD	468.1	464.1	464.5	0.9%	4.0
RAB e.o.p.	3,718.1	3,856.9	3,767.7	-3.6%	-138.9
Electricity	2,020.8	2,101.4	2,052.7	-3.8%	-80.6
Land	233.5	246.1	236.6	-5.1%	-12.6
Natural gasT	996.0	1,041.3	1,010.0	-4.3%	-45.3
Natural gasD	467.8	468.1	468.4	-0.1%	-0.4
RAB's variation e.o.p.	-49.6	-41.7	-131.0
Electricity	-31.9	-32.8	-81.5
Land	-3.1	-3.1	-12.6
Natural gasT	-14.0	-13.9	-45.2
Natural gasD	-0.6	8.1	8.4

				1Q19/1Q18
€M	1Q19	1Q18	2018	Δ %	Δ Abs.
RAB's remuneration	48.4	51.2	201.3	-5.5%	-2.8
Electricity	28.0	29.7	116.5	-5.6%	-1.7
With premium	16.1	16.9	66.7	-4.7%	-0.8
Without premium	11.9	12.8	49.9	-6.9%	-0.9
Land	0.2	0.2	0.7	-25.7%	-0.1
Natural gasT	13.5	14.5	57.1	-6.7%	-1.0
Natural gasD	6.7	6.8	27.0	-1.4%	-0.1
RoR's RAB	5.2%	5.3%	5.3%		-0.1p.p.
Electricity	5.5%	5.6%	5.6%		-0.1p.p.
With premium	5.8%	6.0%	5.9%		-0.1p.p.
Without premium	5.1%	5.2%	5.2%		-0.1p.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	29/03/2019
Standard & Poor's	BBB	A-2	Stable	10/19/2018
Fitch	BBB	F3	Stable	04/11/2018

	1Q19	1Q18	2018
Net Debt (€M)	2,613.9	2,643.7	2,653.1
Average cost	2.3%	2.3%	2.2%
Average maturity (years)	4.2	5.0	4.3
Net Debt / EBITDA	5.2x	5.1x	5.4x

DEBT BREAKDOWN

Funding sources
Bond issues	65%	63%	65%
EIB	15%	17%	15%
Loans	8%	15%	13%
Other	12%	5%	7%

TYPE
Float	37%	40%	38%
Fixed	63%	60%	62%

DEBT

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS Financial position (thousands of euros)

29

	Mar 2019	Dec 2018		Mar 2019	Dec 2018
ASSETS			EQUITY
Non-current assets			Shareholders' equity:
Property, plant and equipment	485	561	Share capital	667,191	667,191
Goodwill	3,782	3,877	Own shares	-10,728	-10,728
Intangible assets	4,150,709	4,192,619	Share premium	116,809	116,809
Investments in associates and joint ventures	168,658	167,841	Reserves	321,695	326,906
Investments in equity instruments at fair value through other comprehensive income	159,872	162,552	Retained earnings	370,090	253,505
Derivative financial instruments	24,971	21,010	Other changes in equity	-5,561	-5,561
Other financial assets	51	45	Net profit for the year	13,243	115,715
Trade and other receivables	70,089	50,246	TOTAL EQUITY	1,472,740	1,463,837
Deferred tax assets	92,959	92,495
	4,671,577	4,691,247	LIABILITIES
Current assets			Non-current liabilities
Inventories	2,138	2,095	Borrowings	2,249,568	2,274,939
Trade and other receivables	500,173	427,126	Liability for retirement benefits and others	95,779	98,288
Current income tax recoverable	21,144	35,371	Derivative financial instruments	21,326	12,952
Cash and cash equivalents	20,536	35,735	Provisions	8,796	8,852
	543,991	500,327	Trade and other payables	380,901	367,743
			Deferred tax liabilities	110,405	113,644
TOTAL ASSETS	5,215,567	5,191,574		2,866,775	2,876,418
			Current liabilities
			Borrowings	406,727	431,401
			Trade and other payables	469,325	419,917
				876,052	851,319
			TOTAL LIABILITIES	3,742,827	3,727,737
			TOTAL EQUITY AND LIABILITIES	5,215,567	5,191,574

CONSOLIDATED STATEMENTS Profit and loss (thousands of euros)

Mar 2019 Mar 2018 Sales 0 8 Services rendered 139,084 144,911 Revenue from construction of concession assets 16,803 13,881 Gains / (losses) from associates and joint ventures 2,802 1,148 Operating grants 0 0 Other operating income 9,652 9,935 Operating income 168,341 169,883 Cost of goods sold -160 -433 Cost with construction of concession assets -12,338 -9,656 External supplies and services -9,499 -10,743 Personnel costs -13,537 -13,361 Depreciation and amortizations -58,550 -58,671 Provisions 1 0 Impairments -94 -19 Other expenses -7,313 -6,943 Operating costs -101,491 -99,826 Operating results 66,850 70,057 Financial costs -17,526 -17,946 Financial income 1,981 972 Financial results -15,545 -16,974 Profit before income tax and ESEC 51,305 53,083 Income tax expense -13,673 -14,677 Energy sector extraordinary contribution (ESEC) -24,390 -25,333 Net profit for the year 13,243 13,073 Attributable to: Equity holders of the Company 13,243 13,073 Non-controlled interest 0 0 Consolidated profit for the year 13,243 13,073

Earnings per share (expressed in euro per share) 0.02 0.02

(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)

	Mar 2019	Mar 2018
Cash flow from operating activities
Cash receipts from customers	548,290	574,102
Cash paid to suppliers	-423,709	-397,176
Cash paid to employees	-14,975	-14,261
Income tax received/ paid	-1,594	-503
Other receipts/ (payments) relating to operating activities	-18,462	12,524
Net cash flows from operating activities (1)	89,551	174,687
Cash flow from investing activities
Receipts related to:
Investment grants	569	3,018
Interests and other similar income	8	1 9
Dividends	1,477	1,380
Payments related to:
Financial investments	0	-12
Property, plant and equipment	-20	-64
Intangible assets - Concession assets	-36,673	-62,255
Net cash flow used in investing activities (2)	-34,639	-57,914
Cash flow from financing activities
Receipts related to:
Borrowings	1,279,000	949,999
Payments related to:
Borrowings	-1,328,271	-1,001,339
Interests and other similar expense	-19,549	-23,905
Net cash from/ (used in) financing activities (3)	-68,820	-75,245
Net (decrease)/increase in cash and cash equivalents (1)+(2)+(3)	-13,909	41,528
Effect of exchange rates	2	-99
Cash and cash equivalents at the beginning of the year	34,096	60,449
Cash and cash equivalents at the end of the period	20,189	101,880
Detail of cash and cash equivalents
Cash	2 5	2 3
Bank overdrafts	-346	-412
Bank deposits	20,511	102,269
	20,189	101,880

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