Results Presentation First Half 2020

29th July 2020

HIGHLIGHTS

In the first half of 2020, EBITDA decreased by €10.3M (-4.2%), to €237.0M. This is mainly explained by (1) a reduction in the remuneration rates (-€9.8M) resulting from lower sovereign bond yields coupled with the new parameters set for the regulatory framework in gas; and (2) higher contribution from OPEX (€4.2M). Conversely, EBITDA benefited from REN's business in Chile, which was €3.5M above the same period of the previous year with the introduction of Transemel in the accounts;
Net Profit was €46.1M, €5.0M lower than in 1H19. Taxes decreased by €6.2M to -€21.7M, and Financial Results improved by €5.4M to -€21.4M, underpinned by the lower average cost of debt (1.9%, versus 2.2% YoY). However, the effective tax rate ascended to 37.3%, penalized by the extraordinary energy sector levy (€28.2M), which now and for the first time also covered Portgás (€4.1M);
In May 13, due to the ongoing COVID-19 crisis, ERS E approved an extraordinary extension of the electricity sector's 2018-2020 regulatory period until December 2021;
In June 5, the credit agency Fitch affirmed REN's rating at 'BBB' and revised its outlook to negative from stable.

RESULTS AT A GLANCE

(€M)

	2Q20	1H20	1H19	Δ%	Δ Abs.
EBITDA	118.1	237.0	247.4	-4.2%	-10.3
Financial Results	-7.8	-21.4	-26.9	20.2%	5.4
Net Profit	41.8	46.1	51.1	-9.8%	-5.0
Recurrent Net Profit	37.1	69.6	75.5	-7.8%	-5.9
Average RAB	3,681.4	3,681.4	3,738.2	-1.5%	-56.9
CAPEX	33.6	60.6	49.9	21.5%	10.7
Net Debt	2,839.9	2,839.9	2,638.7	7.6%	201.3

COVID-19: MAIN IMPACTS ARISING FROM THE PANDEMIC Were felt in investment execution and RoR

Main effects of COVID-19

Delay in some major projects that were temporarily suspended in March and April due to the coronavirus pandemic and are no longer possible to conclude in 2020

Recent upward trend of 10Y PT Government Bonds evolution with slight positive impact in REN's rate of return

Additional costs with donations and safety measures , partially offset by savings with remote work

Higher tariff deviations as a result of the reduction in electricity consumption Impact on REN's financial performance

Overall neutral in Net Income with a slight increase in Net Debt

PORTUGAL'S PERCEIVED SOVEREIGN DEBT RISK Yields rose slightly since the coronavirus outbreak

CAPEX STOOD AT €60.6M, €10.7M HIGHER Of which €6.4M related to the inclusion of Transemel

CAPE X TRANSFERS TO RAB

AVERAGE RAB WAS €3,681.4M, 1.5% LOWER THAN 1H19

1) RoR is equal to the specific asset remuneration, divided by the average RAB. 7

RAB REMUNERATION DECREASED BY €10.9M Essentially due to RoR evolution (-€9.8M)

OPEX AMOUNTED TO €68.3M

CORE OPEX STOOD AT €51.7M, MORE €2.8M YOY Portgás mitigated this increase by €1.7M

EBITDA LOWERED BY €10.3M, ACHIEVING €237.0M Albeit the performance of Chile (€3.5M) and Portgás (€0.2M)

EBITDA

NET DEBT WAS NEARLY FLAT Operating cash flow had a positive impact of €194.9M

NET DEBT

NET PROFIT FELL BY €5.0M TO €46.1M Despite better financials

Net Profit Δ Below EBITDA 1H19 Δ CESE Δ EBITDA Net Profit 1H20 9.1 (5.3%) 51.1 -3.8 (-15.5%) -10.3 (-4.2%) 46.1 €-5.0M (-9.8%)

NET PROFIT

FINAL REMARKS

Over the last six months with the COVID-19 pandemic still spreading globally REN had some of its major investment projects temporarily suspended, and also had additional costs with donations and safety measures, supporting the community and its employees. COVID-19 impact on REN's financial performance was overall neutral in Net Income, with a slight increase in Net Debt;

During this period, REN's EBITDA benefited from the inclusion of Transemel and the good performance of Portgás and Electrogas. However, it suffered with lower remuneration rates resulting from the new regulatory framework in gas, the decrease in bond yields and in RAB, when compared to the same period of 2019;

Net Profit of the period continued to be penalized by an extraordinary levy that raised the effective rate to 37.3%. However, a prudent financial policy led to the strengthening of Financial Results, on the back of lower costs.

RESULTS PRESENTATION

First Half 2020

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 Telephone: +351 210 013 546 [email protected]

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