REN-Redes Energeticas Nacionais

Earnings Release • Mar 25, 2020

RESULTS REPORT 2019

MAIN INDICATORS

EBITDA amounted to €486.2M, 1.2% (€6.0M) below 2018. RAB remuneration dropped by €11.4M, due to the decrease in the Regulated Asset Base and the lower Portuguese bond yields. This was partially compensated by the increase in the results of Electrogas and the consolidation for the first time of Transemel (a total of €2.5M). The comparison with last year's EBITDA was also affected by the one-off sale of Portgás' LPG business in 2018 (€4.0M);

Net Profit and Recurrent Net Profit rose by 2.8% and 5.5% YoY, respectively, to €118.9M and €144.8M. Both benefited from the improvement in Financial Results, that stood at -€52.5M (9.1%), and lower Taxes, that settled at €79.2M (-5.4%);

The average cost of debt, which has been decreasing since 2013, stood at 2.1% (2.2% in 2018), as a result of the ongoing debt refinancing efforts under more competitive terms. However, the payment of CESE continued to hurt REN's results, raising the effective tax rate to 40.0%. Net Debt increased by 6.5% to €2,826.0M due to the Transemel acquisition, in last October.

2019 HIGHLIGHTS

€M	4Q19	2019	2018	Δ%	Δ Abs.
EBITDA	118.3	486.2	492.3	-1.2%	-6.0
Financial Results	-13.1	-52.5	-57.8	9.1%	5.2
Net Profit	32.6	118.9	115.7	2.8%	3.2
Recurrent Net Profit	34.1	144.8	137.2	5.5%	7.6
Average RAB	3,753.3	3,753.3	3,832.0	-2.1%	-78.6
CAPEX	78.3	188.6	121.9	54.7%	66.6
Net Debt	2,826.0	2,826.0	2,653.1	6.5%	172.9

€M	2019	2018	Δ%	Δ Abs.
Average RAB	3,753.3	3,832.0	-2.1%	-78.6
Electricity	2,061.4	2,091.9	-1.5%	-30.5
Land	230.4	242.9	-5.2%	-12.6
Natural gasT	988.5	1,032.6	-4.3%	-44.1
Natural gasD	473.0	464.5	1.8%	8.5
RAB end of period	3,738.8	3,767.7	-0.8%	-28.9
Electricity	2,069.9	2,052.7	0.8%	17.3
Land	224.1	236.6	-5.3%	-12.6
Natural gasT	967.0	1,010.0	-4.3%	-43.0
Natural gasD	477.8	468.4	2.0%	9.4
CAPEX	188.6	121.9	54.7%	66.6
Electricity	140.9	85.6	64.6%	55.3
Natural gasT	16.2	11.3	42.7%	4.8
Natural gasD	26.9	24.9	8.2%	2.0
Transemel	4.5			4.5
Other	0.1	0.1	-9.8%	0.0
RAB variation e.o.p.	-28.9	-131.0
Electricity	17.3	-81.5
Land	-12.6	-12.6
Natural gasT	-43.0	-45.2
Natural gasD	9.4	8.4

CAPEX and Transfers to RAB increased by €66.6M and €102.2M, to €188.6M and €190.6M, respectively. The electricity business represented 74.7% of the former and 79.6% of the latter;

CAPEX and RAB Transfers to RAB increased by €102.2M

In electricity, the main projects concluded were:

• Connection via submarine cable (17 km) between Viana do Castelo and the off-shore wind power plant zone;

• Second feed to the Alcochete substation through the overhead line Fanhões - Alcochete, 400 kV;

• Refurbishment and uprating of the overhead lines Riba de Ave - Recarei 1 and Rio Maior - Alto de Mira, 400 kV, and Porto

• -
  -
  -
  • Alto Palmela 2, 150 kV.
• equipment;

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

Investments in Portgás targeted network expansion and densification, mostly for B2C. Regarding B2B, the company continues to monitor new prospects, alongside with firm contracts. Network decarbonization process is on the move.

CAPEX WAS UP BY €66.6M YOY

Note: T - Transmission; D - Distribution.

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

2) Includes transfers to RAB of the connection to the off-shore wind project "Windfloat", which is remunerated at the base rate.

(€M)

The decline in transmission assets impacted average RAB that was €78.6M 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 €30.5M YoY, while lands, the category with the lowest RoR (0.3%), was

In natural gas transportation, the average RAB decreased by €44.1M (RoR 5.4%) to €988.5M;

In 2019, electricity accounted for 54.9% of the average RAB, natural gas for 38.9% (Portgás included) and lands

AVERAGE RAB FELL BY €78.6M (2.1%) Portgás increased by €8.5M

(1) Transemel was consolidated from 1 October 2019; (2) Includes -Δ€0.84M of OPEX own works;

(3) OMIP and Nester Results (€2.5M) and Other Assets Revenues (€1.3M).

5

RAB REMUNERATION DECLINED BY €11.4M YOY Mostly impacted by the decline in RoR (€7.8M)

RAB REMUNERATION PORTGÁS (€M)

OPERATIONAL COSTS (€M)

Regarding the transmission business, External Supplies and Services included higher costs with ERSE (∆€3.8M) and higher ITC (Inter Transmission System Operator Compensation for Transits) mechanism (∆€2.5M), which are both pass-through costs; Regarding the natural gas distribution business, OPEX variation was positively impacted by ESS (∆-€2.9M), Personnel Costs (∆-€0.7M) and OOC (∆-€0.5M). Δ External Transemel Supplies and Services OPEX Δ Other 2018 Δ Personnel Costs Portgás OPEX 2019 131.3 4.1 (8.2%) 0.1 (0.2%) -4.0 (-21.6%) 0.5 (n.a.) 2.3 (19.9%) 134.4 €3.1M (2.4%)

OPERATIONAL COSTS INCREASED BY €3.1M Excluding pass-through costs, OPEX was down by €3.2M

7

CORE OPEX WAS €3.2M LOWER YOY Portgás contributed with -€4.0M

(1) ITC - Inter Transmission System Operator Compensation for Transits; 8 (2) Item related to Portgás.

Depreciations and amortizations grew by 0.2% to €235.6M;

Income Tax declined by 6.3%, to €54.8M. The effective tax rate, excluding the levy, was 27.7%, while in 2018 it was 29.3%;

Extraordinary levy (CESE) decreased by 3.4% to €24.4M, due to the

In 2019, 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%;
• 2.2% in 2018;
• due to the Transemel acquisition.

In 2019 the average cost of debt slightly decreased to 2.1%, from

Financial Results improved by 9.1%, despite a higher stock of debt,

€M	2019	2018	Δ%	Δ Abs.
EBITDA	486.2	492.3	-1.2%	-6.0
Depreciations and amortizations	235.6	235.1	0.2%	0.6
Financial Results	-52.5	-57.8	9.1%	5.2
Profit before income tax and levy	198.1	199.5	-0.7%	-1.4
Taxes	54.8	58.5	-6.3%	-3.7
Extraordinary levy	24.4	25.3	-3.4%	-0.9
Net Profit	118.9	115.7	2.8%	3.2
Recurrent Net Profit	144.8	137.2	5.5%	7.6

BELOW EBITDA

Financial Results were helped by lower average cost of debt

NET DEBT INCREASED BY 6.5% TO €2,826.0M Due to the Transemel acquisition and the consolidation of its Debt

NET PROFIT ROSE TO €118.9M (€3.2M)

• The cost of REN's debt stood at 2.1% due to improvements in market conditions and REN's own risk profile. The Company's debt is investment grade by the three major rating agencies: S&P, Fitch and Moody's;
• The €739M maturing in 2020 are fully covered by REN´s undrawn credit facilities. Of these €739M, €268M respect to a long term bond maturing in October 2020 and this is already covered by a forward starting long term credit facility signed in April 2019. The remaining amount respects mostly to short term opportunistic funding that is fully covered by undrawn medium to long term credit facilities amounting to €725M. As of 31 December 2019 REN´s funding needs are fully covered for a period of 2.5 years.
  • 1) Value adjusted by interest accruals and hedging on yen denominated debt.

REN IS FUNDED OVER THE NEXT TWO YEARS

In 2019, the average debt maturity was 3.59 years

The total amount of fixed assets concessions related declined to

Investments and goodwill (1) increased to €363.0M 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 €362.3M in 2019, decreasing

• €4,023.4M (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 €321.0M. 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 €748.9M at the end of the period,

Other liabilities (5) stood at €128.2M. These include retirement and other benefit obligations, derivative financial instruments and guarantee

€M	2019	2018
Fixed assets c. related	4,023.4	4,072.9
Investments and goodwill1	363.0	355.3
Tariff deviations	214.5	160.8
Receivables2	362.3	444.4
Cash	21.0	35.7
Other3	321.0	122.4
Total assets	5,305.3	5,191.6
Shareholders equity	1,446.1	1,463.8
Debt (end of period)	2,869.5	2,706.3
Provisions	8.4	8.9
Tariff deviations	104.3	120.4
Payables4	748.9	780.9
Other5	128.2	111.2
Total equity and liabilities	5,305.3	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 zero in 2019; 2) Value adjusted to include the amount to be received from the FSSSE: €5.8M in 2018 and €4.4M in 2019.

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	2019	2018
Electricity1)	38.7	16.6
Trading	138.1	128.0
2) Natural GasT	-57.8	-71.5
Natural Gas D	-4.4	-1.1
TOTAL	114.6	72.0

THE BALANCE OF TARIFF DEVIATIONS WAS €114.6M To be received from tariffs over the next two years

14

During 2019, macroeconomic conditions presented high liquidity and very low interest rates. REN took advantage from this situation by reducing financial charges and reinforcing its financial liquidity and maturity;

REN's total liquidity reached €1,204M, including credit facilities, loans, non-

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

• used commercial paper programmes, cash and bank deposits;
• Bank borrowings were mainly represented by EIB loans (€435.7M);
• for that purpose);
• €1,300.0M, of which €836.0M were available for use;
• consolidated equity with the total consolidated regulated assets).

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

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	297.8	1,445.3	1,743.1
Bank borrowings	75.7	581.7	657.4
Commercial paper	364.0	100.0	464.0
Bank overdrafts	0.5	0.0	0.5
Finance lease	1.5	2.4	3.9
TOTAL	739.5	2,129.4	2,868.9
Accrued interest	25.4	0.0	25.4
Prepaid interest	-7.7	-17.1	-24.8
TOTAL	757.2	2,112.3	2,869.5

DIVERSIFIED FUNDING SOURCES

ANNUALIZED CLOSING PRICES

Source: Bloomberg

SHARE PERFORMANCE In 2019, REN's share price increased by 11.8% YTD with a TSR of 19.6%

ANALYST RECOMMENDATIONS(1)

CMVM: MAIN PRESS RELEASES (from January 2019)

€2.77 Upside/Downside(+/-) 37.8%

1) March 20th, 2020.

	Jan-04: 2018-2027 PDIRGN Approval
	Jan-07: 2019 Financial calendar
Average Price target €2.77	Jan-10: Constitutional Court decision regarding Special Energy Levy	results
Upside/Downside(+/-) 37.8%	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	calendar
	Apr-03: Accounts reporting document referring to the
March 20th, 2020.	31st financial year ended on December 2018 - item 1 of the agenda for the general shareholders meeting

MARKET INFORMATION

May-03: Resolutions approved at the general shareholders meeting

May-03: First 3 months 2019 consolidated

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

Out-01: Closing acquisition of Empresa de Transmisión Eléctrica Transemel S.A., in Chile

Out-07: Change in the 2019 financial

Nov-15: 9M19 Consolidated results

Dec-10: 2020 financial calendar

*Inception to date (July 09th 2007).

REN END OF PERIOD	2019	2018
Price (€)
Close	2,720	2.434
Average	2,570	2.458
High YTD	2,780	2.650
Low YTD	2,400	2.326
Variation YTD	11,8%	-1.8%
Market cap. (€M)	1 815	1,624
Number of shares	667,191,262	667,191,262
Own shares (mn)	3,9	3.9
Average Daily Volume YTD (€M)	1,4	2.4
Average Daily Volume YTD (th shares)	563	959
Performance indicators
Dividend yield	6,3%	7.0%
Total shareholder return YTD	19,6%	5.0%
Cumulative total return*
REN	122,0%	85.6%
PSI20	-36,7%	-45.1%
EuroStoxx Utilities	19,7%	-6.5%

REN'S TOTAL MARKET CAP STOOD AT €1.8B

REN'S SUSTAINABILITY STRATEGY Sustainability Performance: Indicators

EMISSIONS OF GREENHOUSE GASES
(Ton. CO2 e)	2019	2018
SCOPE 1 – All Direct Emissions	23,005	21,745
Natural Gas Purges (CH ) 4	1,080	761
Flare Burn	0	17
Self-consumption by bollers	18,906	16,491
Sulphur Hexafluoride (SF ) 6	567	545
Natural Gas (Buildings)	398	2,186
Propane Gas (Buildings)	2	7
Fuel (equipment and fleet)	2,052	1,739
SCOPE 2 – Indirect Emissions	235,720	241,607
Electricity	29,096	21,039
Electricity losses in the network	206,624	220,568
SCOPE 3 – All Other Indirect Emissions	557	559
Air Travel	557	559

2019 (REN and SP) FATAL ACCIDENTS	2018
REN 0	0
Service Providers and Contractors 1	0
NON-FATAL ACCIDENTS
REN 9	10
Service Providers and Contractors 26	15

REN'S SUSTAINABILITY STRATEGY Sustainability Performance: Ratings*

Sustainable Development Goals (SDG)

REN is committed to the achievement of the 17 United Nations Sustainable Development Goals

* Data referring to 2019. The ratings are independent and, as such, there should be no comparisons.

APPENDIX

* NON RECURRENT ITEMS:

2019: i) Extraordinary energy sector levy, as established in the 2019 State budget law (€24.4M); Costs with the Transemel acquisition process (€1.8M, €1.5M after taxes);

2018: i) Extraordinary energy sector levy, as established in the 2018 State budget law (€25.3M); ii) one-off costs from the LPG sale, in July (€3.7M, €3.8M after taxes).

			2019/2018
€M	2019	2018	Δ %	Δ Abs.
1) TOTAL REVENUES	787.0	726.9	8.3%	60.1
Revenues from assets	445.1	455.3	-2.2%	-10.2
Return on RAB	189.2	200.6	-5.7%	-11.4
Electricity	108.9	116.5	-6.6%	-7.7
Natural gas	53.4	57.1	-6.4%	-3.7
Portgás	27.0	27.0	-0.3%	-0.1
Lease revenues from hydro protection zone	0.7	0.7	-1.2%	0.0
Economic efficiency of investments	25.0	23.6	5.7%	1.4
Recovery of amortizations (net from subsidies)	212.3	212.4	-0.1%	-0.1
Subsidies amortization	17.9	17.9	-0.2%	0.0
Revenues from Transemel	2.7			2.7
Revenues of OPEX	130.0	121.1	7.3%	8.8
Other revenues	25.2	28.6	-11.8%	-3.4
Construction revenues (IFRIC 12)	183.9	121.8	51.1%	62.2
2) OPEX	134.4	131.3	2.4%	3.1
Personnel costs	55.3	55.8	-1.0%	-0.6
External supplies and services	60.0	58.2	3.1%	1.8
Other operational costs	19.1	17.3	10.9%	1.9
3) Construction costs (IFRIC 12)	164.6	102.4	60.9%	62.3
4) Depreciations and amortizations	235.6	235.1	0.2%	0.6
5) Other	1.7	0.9	83.6%	0.8
6) EBIT	250.6	257.2	-2.6%	-6.6
7) Depreciations and amortizations	235.6	235.1	0.2%	0.6
8) EBITDA	486.2	492.3	-1.2%	-6.0
9) Depreciations and amortizations	235.6	235.1	0.2%	0.6
10) Financial result	-52.5	-57.8	-9.1%	-5.2
11) Income tax expense	54.8	58.5	-6.3%	-3.7
12) Extraordinary contribution on energy sector	24.4	25.3	-3.4%	-0.9
13) NET PROFIT	118.9	115.7	2.8%	3.2
14) Non recurrent items*	25.9	21.5	20.5%	4.4
15) RECURRENT NET PROFIT	144.8	137.2	5.5%	7.6

RESULTS BREAKDOWN

€M		2018	2019/2018
			Δ %	Δ Abs.
Other revenues	25.2	28.6	-11.8%	-3.4
Allowed incentives	1.3	2.9	-53.6%	-1.6
Interest on tariff deviation	0.5	0.0		0.4
Gains in related companies	0.0	4.0		-4.0
Telecommunication sales and services rendered	6.6	6.1	7.4%	0.5
Consultancy services and other services provided	2.1	3.0	-35.7%	-1.2
Other revenues*	14.6	12.2	20.1%	2.4
Other costs	19.1	17.3	10.9%	1.9
Costs with ERSE	11.1	7.2	53.2%	3.8
Other	8.1	10.0	-19.4%	-2.0

*Includes revenues related to Electrogas' Net Profit proportion (€7.1M in 2019 and €6.5M in 2018).

OTHER OPERATIONAL REVENUES AND COSTS BREAKDOWN

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

€M		2018	2019/2018
			Δ %	Δ Abs.
1) REVENUES	503.5	451.0	11.6%	52.5
Revenues from assets	289.3	296.6	-2.5%	-7.3
Return on RAB	108.9	116.5	-6.6%	-7.7
Lease revenues from hydro protection zone	0.7	0.7	-1.2%	0.0
Economic efficiency of investments	25.0	23.6	5.7%	1.4
Recovery of amortizations (net from subsidies)	142.8	143.7	-0.6%	-0.9
Subsidies amortization	12.0	12.1	-0.7%	-0.1
Revenues of OPEX	68.6	64.5	6.5%	4.2
Other revenues	4.7	4.3	8.5%	0.4
Interest on tariff deviation	0.1	0.4	-61.7%	-0.2
Other	4.5	3.9	15.4%	0.6
Construction revenues (IFRIC 12)	140.9	85.6	64.6%	55.3
2) OPEX	55.4	52.6	5.4%	2.8
Personnel costs	17.8	19.1	-6.9%	-1.3
External supplies and services	29.2	25.8	13.0%	3.4
Other operational costs	8.5	7.7	10.4%	0.8
3) Construction costs (IFRIC 12)	126.5	70.9	78.5%	55.7
4) Depreciations and amortizations	154.3	155.4	-0.7%	-1.1
5) Other	1.2	0.4		0.8
6) EBIT (1-2-3-4-5)	166.0	171.7	-3.3%	-5.7
7) Depreciations and amortizations	154.3	155.4	-0.7%	-1.1
8) EBITDA (6+7)	320.3	327.1	-2.1%	-6.8

EBITDA BREAKDOWN (ELECTRICITY¹ )

			2019/2018
€M	2019	2018	Δ %	Δ Abs.
1) REVENUES	175.0	171.3	2.2%	3.7
Revenues from assets	114.9	118.5	-3.1%	-3.7
Return on RAB	53.4	57.1	-6.4%	-3.7
Recovery of amortizations (net from subsidies)	55.6	55.6	0.0%	0.0
Subsidies amortization	5.8	5.9	-0.1%	0.0
Revenues of OPEX	44.3	40.4	9.7%	3.9
Other revenues	-0.3	1.1		-1.4
Interest on tariff deviation*	-0.3	-0.2	64.4%	-0.1
Consultancy services and other services provided	0.2	0.0		0.2
Other	-0.2	1.2		-1.5
Construction revenues (IFRIC 12)	16.2	11.3	42.7%	4.8
2) OPEX	30.0	27.3	9.8%	2.7
Personnel costs	7.9	7.6	4.5%	0.3
External supplies and services	17.0	16.3	4.2%	0.7
Other operational costs	5.1	3.4	48.0%	1.7
3) Construction costs (IFRIC 12)	14.0	9.3	51.1%	4.7
4) Depreciations and amortizations	60.8	60.8	0.0%	0.0
5) Other	0.1	0.0	35.9%	0.0
6) EBIT	70.2	73.9	-5.1%	-3.7
7) Depreciations and amortizations	60.8	60.8	0.0%	0.0
8) EBITDA	130.9	134.7	-2.8%	-3.7

EBITDA BREAKDOWN (NATURAL GAS TRANSPORTATION)

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

Δ % 84.9 87.9 -3.3% 1) REVENUES 40.9 40.1 1.9% Revenues from assets 27.0 27.0 -0.3% Return on RAB 13.9 13.1 5.9% Recovery of amortizations (net from subsidies) 0.1 0.0 Subsidies amortization 17.1 16.3 4.7% Revenues of OPEX 0.1 6.6 -99.2% Other revenues 0.0 0.0 -48.7% Interest on tariff deviation -0.2 0.6 Adjustments previous years 0.0 4.0 Gains in related companies* 0.2 1.5 -87.7% Other services provided 0.1 0.6 -83.4% Other 26.9 24.8 8.3% Construction revenues (IFRIC 12) 14.4 18.4 -21.6% 2) OPEX 4.1 4.8 -13.6% Personnel costs 5.2 8.1 -35.4% External supplies and services 5.0 5.5 -8.4% Other operational costs 24.1 22.2 8.5% 3) Construction costs (IFRIC 12) 14.2 13.4 6.2% 4) Depreciations and amortizations 0.1 0.2 -64.7% 5) Other 32.2 33.7 -4.6% 6) EBIT 14.2 13.4 6.2% 7) Depreciations and amortizations	€M	2019	2018	2019/2018
					Δ Abs.
					-2.9
					0.8
					-0.1
					0.8
					0.1
					0.8
					-6.5
					0.0
					-0.8
					-4.0
					-1.3
					-0.5
					2.1
					-4.0
					-0.7
					-2.9
					-0.5
					1.9
					0.8
					-0.2
					-1.5
					0.8
8) EBITDA		46.4	47.1	-1.5%	-0.7

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

EBITDA BREAKDOWN (PORTGÁS)

EBITDA BREAKDOWN (TRANSEMEL)

€M	4Q19	2019 As If
1) REVENUES	2.7	13.2
2) OPEX	0.5	2.0
3) Depreciations and amortizations	0.4	1.8
4) EBIT	1.8	9.3
5) Depreciations and amortizations	0.4	1.8
6) EBITDA	2.2	11.1

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

2019 €M			2019/2018
		2018	Δ %	Δ Abs.
1) TOTAL REVENUES	20.8	16.6	24.9%	4.2
Other revenues	20.8	16.6	24.9%	4.2
Allowed incentives	1.3	2.9	-53.6%	-1.6
Interest on tariff deviation	0.7	-0.1		0.8
Telecommunication sales and services rendered	6.6	6.1	7.4%	0.5
Consultancy services and other services provided	1.5	1.9	-20.4%	-0.4
Other	10.7	5.9	82.4%	4.8
2) OPEX	34.0	33.0	3.1%	1.0
Personnel costs	25.4	24.3	4.3%	1.0
External supplies and services	8.1	8.0	0.9%	0.1
Other operational costs	0.6	0.7	-15.3%	-0.1
3) Construction costs (IFRIC 12)	0.0	0.0		0.0
4) Depreciations and amortizations	5.9	5.5	8.2%	0.4
5) Other	0.4	0.3	45.1%	0.1
6) EBIT	-19.5	-22.1	11.6%	2.6
7) Depreciations and amortizations	5.9	5.5	8.2%	0.4
8) EBITDA	-13.6	-16.6	18.2%	3.0

EBITDA BREAKDOWN (OTHER* )

* Total costs;

• *** Includes transfers to RAB of the connection to the off

** Transfers to RAB include direct acquisitions RAB related -shore wind project "Windfloat", which is remunerated at the base rate .

		2018	2019/2018
€M	2019		Δ %	Δ Abs.
CAPEX*	188.6	121.9	54.7%	66.6
Electricity	140.9	85.6	64.6%	55.3
Natural gas T	16.2	11.3	42.7%	4.8
Natural gas D	26.9	24.9	8.2%	2.0
Transemel	4.5			4.5
Other	0.1	0.1	-9.8%	0.0
Transfers to RAB**	190.6	88.5	115.5%	102.2
Electricity	151.7	53.8	181.7%	97.8
Natural gas T	12.7	11.0	15.5%	1.7
Natural gas D	26.3	23.7	11.2%	2.6
Average RAB	3,753.3	3,832.0	-2.1%	-78.6
Electricity	2,061.4	2,091.9	-1.5%	-30.5
With premium	1,096.5	1,127.0	-2.7%	-30.5
Without premium	964.9	964.9	0.0%	0.0
Land	230.4	242.9	-5.2%	-12.6
Natural gas T	988.5	1,032.6	-4.3%	-44.1
Natural gas D	473.0	464.5	1.8%	8.5
RAB e.o.p.	3,738.8	3,767.7	-0.8%	-28.9
Electricity	2,069.9	2,052.7	0.8%	17.3
With premium	1,083.6	1,111.8	-2.5%	-28.2
Without premium***	986.3	940.9	4.8%	45.4
Land	224.1	236.6	-5.3%	-12.6
Natural gas T	967.0	1,010.0	-4.3%	-43.0
Natural gas D	477.8	468.4	2.0%	9.4

			2019/2018
€M	2019	2018	Δ %	Δ Abs.
RAB's remuneration	189.9	201.3	-5.7%	-11.4
Electricity	108.9	116.5	-6.6%	-7.7
With premium	61.8	66.7	-7.4%	-4.9
Without premium	47.1	49.9	-5.5%	-2.7
Land	0.7	0.7	-1.2%	0.0
Natural gas T	53.4	57.1	-6.4%	-3.7
Natural gas D	27.0	27.0	-0.3%	-0.1
RoR's RAB	5.1%	5.3%		-0.2p.p.
Electricity	5.3%	5.6%		-0.3p.p.
With premium	5.6%	5.9%		-0.3p.p.
Without premium	4.9%	5.2%		-0.3p.p.
Land	0.3%	0.3%		0.0p.p.
Natural gas T	5.4%	5.5%		-0.1p.p.
Natural gas D	5.7%	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	19/11/2019
Fitch	BBB	F3	Stable	02/08/2019

	2019	2018
Net Debt (€M)	2,826.0	2,653.1
Average cost	2.1%	2.2%
Average maturity (years)	3.6	4.3
Net Debt / EBITDA	5.7x	5.4x

DEBT BREAKDOWN

Funding sources
Bond issues	60%	65%
EIB	15%	15%
Loans	8%	13%
Other	16%	7%

TYPE
Float	42%	38%
Fixed	58%	62%

DEBT

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS Financial position (thousands of euros)

32

ASSETS			EQUITY
Non-current assets			Shareholders' equity:
Property, plant and equipment	125,649	561	Share capital	667,191	667,191
Intangible assets	4,214,916	4,192,619	Own shares	-10,728	-10,728
Goodwill	5,969	3,877	Share premium	116,809	116,809
Investments in associates and joint ventures	172,278	167,841	Reserves	316,681	326,906
Investments in equity instruments at fair value through other comprehensive income	155,676	162,552	Retained earnings	242,853	253,505
Derivative financial instruments	27,229	21,010	Other changes in equity	-5,561	-5,561
Other financial assets	71	45	Net profit for the period	118,899	115,715
Trade and other receivables	114,509	50,246	TOTAL EQUITY	1,446,144	1,463,837
Deferred tax assets	93,666	92,495
	4,909,964	4,691,247	LIABILITIES
Current assets			Non-current liabilities
Inventories	3,919	2,095	Borrowings	2,112,296	2,274,939
Trade and other receivables	353,725	427,126	Liability for retirement benefits and others	103,309	98,288
Current income tax recoverable	14,921	35,371	Derivative financial instruments	28,848	12,952
Derivative financial instruments	1,732	0	Provisions	8,416	8,852
Cash and cash equivalents	21,044	35,735	Trade and other payables	340,627	367,743
	395,341	500,327	Deferred tax liabilities	141,774	113,644
				2,731,269	2,876,418
TOTAL ASSETS	5,305,305	5,191,574	Current liabilities
			Borrowings	757,158	431,401
			Trade and other payables	370,733	419,917
				1,127,891	851,319

	2,731,269	2,876,418
Borrowings	757,158	431,401
Trade and other payables	370,733	419,917
	1,127,891	851,319
TOTAL LIABILITIES	3,859,160	3,727,737
TOTAL EQUITY AND LIABILITIES	5,305,305	5,191,574

Dec 2019 Dec 2018 Dec 2019 Dec 2018

1,446,144	1,463,837
118,899	115,715
-5,561	-5,561
242,853	253,505
316,681	326,906
116,809	116,809
-10,728	-10,728
667,191	667,191

CONSOLIDATED STATEMENTS

Profit and loss (thousands of euros)

	Dec 2019	Dec 2018
Sales	79	117
Services rendered	565,707	567,371
Revenue from construction of concession assets	183,944	121,775
Gains / (losses) from associates and joint ventures	8,984	5,787
Other operating income	28,049	32,156
Operating income	786,763	727,207
Cost of goods sold	-904	-1,456
Cost with construction of concession assets	-164,636	-102,351
External supplies and services	-60,500	-58,752
Personnel costs	-54,745	-55,287
Depreciation and amortizations	-235,626	-235,055
Provisions	310	-301
Impairments	-2,050	-647
Other expenses	-18,240	-15,799
Operating costs	-536,391	-469,646
Operating results	250,372	257,560
Financial costs	-65,438	-69,656
Financial income	6,254	5,125
Investment income - dividends	6,905	6,423
Financial results	-52,278	-58,108
Profit before income tax and ESEC	198,094	199,453
Income tax expense	-54,795	-58,471
Energy sector extraordinary contribution (ESEC)	-24,400	-25,267
Net profit for the year	118,899	115,715
Attributable to:
Equity holders of the Company	118,899 0	115,715
		0
Non-controlled interest Consolidated profit for the year	118,899	115,715

(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)

	Dec 2019	Dec 2018
Cash flow from operating activities
Cash receipts from customers	2,425,093	2,665,900
Cash paid to suppliers	-1,909,369	-2,082,327
Cash paid to employees	-74,296	-73,230
Income tax received/ paid	-16,889	-114,353
Other receipts/ (payments) relating to operating activities	-80,372	-582
Net cash flows from operating activities (1)	344,166	395,407
Cash flow from investing activities
Receipts related to:
Investments in associates	292	0
Property, plant and equipment	0	120
Other financial assets	0	4,040
Investment grants	7,177	6,777
Interests and other similar income	3 0	1 0
Dividends	13,970	12,805
Payments related to:
Financial investments	-162,347	0
Equity instruments through other comprehensive income	0	-49
Property, plant and equipment	-5,279	-156
Intangible assets - Concession assets	-170,567	-144,007
Net cash flow used in investing activities (2)	-316,724	-120,459
Cash flow from financing activities
Receipts related to:
Borrowings	5,088,550	2,397,999
Payments related to:
Borrowings	-4,956,395	-2,519,425
Interests and other similar expense	-59,707	-65,688
Dividends	-113,426	-113,426
Net cash from / (used in) financing activities (3)	-40,978	-300,540
Net (decrease) / increase in cash and cash equivalents (1)+(2)+(3)	-13,537	-25,592
Effect of exchange rates	-190	-101
Cash and cash equivalents at the beginning of the year	34,096	60,448
Changes in the perimeter	152	-659
Cash and cash equivalents at the end of the period	20,521	34,096
Detail of cash and cash equivalents
Cash	0	0
Bank overdrafts	-523	-1,638
Bank deposits	21,044	35,735
	20,521	34,096

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