REN-Redes Energeticas Nacionais

Earnings Release • May 14, 2021

Results Report 1Q2021

14th May 2021

AGENDA

1. Overview of the period

2. Business performance

3 Closing remarks .

1. Overview of the period

KEY MESSAGES 1Q2021

EBITDA amounted to €114.4M, a decrease of 3.8% (-€4.5M) YoY credited to (1) a reduction in RAB remuneration (-€2.5M), driven by the decrease in RAB (impact of -€1.9M) and in RoR (-€0.6M); (2) a decline in OPEX contribution with maintenance costs increasing by €1.4M, of which +€1.1M related to forest clearing. These costs should smooth out as 2021 progresses.

International business performance fell €1.0M, €0.6M of which attributed to Electrogas.

Net Profit grew €0.2M YoY to €4.5M, due to (1) a positive contribution from Financial results (increase of €2.9M to -€10.8M), a reflection of the decrease of the cost of debt (from 1.8% to 1.6%); (2) a lower energy levy (+€1.1M).

Net debt was also improved with additional tariff deviation payments.

Capex increased by €4.8M vs 1Q20 to €31.8M, while transfers to RAB increased by 2.8M€ to €7.7M. The effects of Covid19 continued to play a role by inflicting some delays in works in progress.

Issuance of €300M of Green Bonds maturing in 8 years with an interest rate of mid-swap, turned out a success with demand surpassing supply by 5x.

Renewable energy sources (RES) reached 78.7% of total supply (approx. +10 pp than in 1Q20). Consumption of electricity remained unchanged and natural gas decreased 2.4TWh, which is consistent with more electricity produced with RES.

Quality of service stayed at the same very high level as in 1Q20, for both electricity and NG, with 0.00 min of electricity interruption time, and natural gas combined availability rate at approximately 100%.

SECTOR OVERVIEW

The Energy Transition is at the center of the Portuguese Government agenda

Bilateral agreements for the grid connection of 14 photovoltaic solar PV energy projects, totaling 3.5 gigawatt, already signed. The bilateral agreements constitute one of the three routes available for renewable energy production plants to access the Public Service Electricity Network (RESP).

• ERSE launched public consultations for the Ten Year Network Development Plans for electricity and gas transmission for the 2022-2031 period.
• In electricity transmission, a global investment of 831.2 million euros was proposed for the 2022-2031 period, of which 392 million euros for the first five-years.
• In gas transmission, a global investment of 136.7 million euros was proposed for the 2022-2031 period, of which 87.4 million euros for the first five-years.

New regulation on renewable gases and self-consumption

• ERSE approved the regulations for the gas sector, completing the adaptation to the new legal framework for the gas sector, which now includes the production of gases from renewable sources and low carbon gases, and also approved the extension to the National Gas System of the Risk and Guarantee Management Scheme Directive in force to National Electricity System.
• ERSE approved the new regulation of the self-consumption of electric energy. This new regulation creates a more comprehensive and clearer framework of rules, with emphasis on the inclusion of energy storage activity in the context of the self-consumption and the possibility of implementing pilot projects.

2. Business performance

BUSINESS HIGHLIGHTS

High quality of service in Portugal, despite a higher share of renewables and a slight decrease in demand for gas

FINANCIAL HIGHLIGHTS

Stable Net profit with a positive contribution from Financial Results

Decline in EBITDA linked to lower RAB and greater OPEX costs

1 Includes Apolo SpA and Aerio Chile SpA costs | 2 Includes amortizations recovery, subsidies amortization, REN Trading incentives, telecommunication sales and services rendered, interest on tariff deviation, consultancy revenues and other services provided, OMIP and Nester results | 3 Excludes the segment "Other", which includes REN SGPS, REN Serviços, REN Telecom, REN Trading, REN PRO and REN Finance B.V. | 4 Refers to Portgás

1Q21 RESULTS 9

Return on RAB rates relatively stable versus 2020

Transfers to RAB and CAPEX increased YoY

Transfers to RAB €M

Capex €M

Electricity Key highlights

Main investment projects:

• New 220 kV bay at Vila Pouca de Aguiar substation to reinforce transmission grid;
• New 60 kV bay at Vila Fria substation to reinforce the supply of distribution network.

Gas Transmission

Main investment projects:

• The replacement and upgrade of the cryogenic pumping system (2nd phase) at the Sines Terminal
• The replacement and upgrade of measuring chain equipment in the Pipeline Network

Gas Distribution

• Steady developments on the network expansion and densification, aiming at reaching new points of consumption (B2C)
• B2B is perceived as an anchor for network development and the company is constantly searching for ways of reinforcing it through massmarket connections
• Licensing of 3 big projects with Capex execution expected to occur in 2H 2021

RAB was down across all asset categories

Average RAB evolution €M

RAB remuneration decreased in all businesses, with lower returns and asset bases

Return on RAB evolution breakdown €M

Return on RAB drop caused by a smaller asset base (by €113.7M to €1,940.4M) and lower rate of return on assets with and without premium¹

Decline in Return on RAB justified by a smaller asset base (by €42.3M to a total of €917.8M) and a lower RoR of 4.50% (-8bps)

Return on RAB reduction attributed to a lower rate of return (from 4.78% to 4.70%) and a smaller asset base (by €4.8M to a total of €472.8M)

OPEX increased by €2.9M YoY, with core OPEX rising €1.8M, mostly related to forest clearing

Core OPEX¹ evolution €M

Key highlights

Core external costs

• Maintenance costs (+€1.4M), mostly related to forest clearing (+€1.1M), reflecting the vegetation area managed (2,234ha in 1Q21); on an yearly basis this cost should decline versus 2020

Non-core costs

• Pass-through costs (costs accepted in the tariff) increased by €1.1M, of which €1.8M correspond to costs with cross-border and system services costs

DOMESTIC BUSINESS: ELECTRICITY

A higher OPEX and a lower return on RAB pushed downwards the Electricity EBITDA

DOMESTIC BUSINESS: GAS TRANSMISSION

The reduction in EBITDA is mainly explained by a lower RAB remuneration

EBITDA breakdown €M

DOMESTIC BUSINESS: GAS DISTRIBUTION

Gas Distribution EBITDA reduction mainly explained by a lower Opex contribution

2. Business performance

INTERNATIONAL BUSINESS

Contribution to EBITDA 1Q21 €M

Solid performance from Chilean businesses despite decline in EBITDA mainly related to higher opex and lower revenues

Key highlights

Transemel, Chile

Revenues decreased YoY mainly driven by lower revenues and higher opex

1Q20: €1.6M

€1.2M €0.4M

EBITDA

Electrogas, Chile

EBITDA decreased YoY, driven by lower revenues (lower tariff) and higher opex

(25.1%)

Strong improvement in Financial Results, as the cost of debt maintained its decreasing trend

Effective tax rate reached 43.0%,

0.9% less than in 1Q20 (including the levy)

Net Profit remained stable as a result of better financials and a slightly lower CESE, both of which partially offset a lower EBITDA

Net profit evolution breakdown €M Key highlights

• The €2.9M positive effect from Financial Results was a consequence of better financial conditions
• Lower CESE charge (Δ€-1.1M), reflecting the negative evolution of the asset base

Net Debt came down mostly due to tariff deviations

1 Calculated as Net Debt plus Cash, bank deposits and derivative financial instruments (€227M), excluding effects of hedging on yen denominated debt, accrued interest and bank overdrafts | 2 Includes loans (6.6%), Transemel's debt (0.3%) and leasing (0.2%) | 3. Includes amounts received from the Fund for Systemic Sustainability of the Energy Sector (FSSSE)

SHARE PRICE & SHAREHOLDER RETURN

The share price mimicked the performance of the indexes

Hold recommendations 55.0% 3.3pp 1Q20: 58.3% Buy recommendations 45.0% 12.0pp 1Q20: 33.0% Upside/Downside (+/-) 13.2% 7.0pp 1Q20: 6.2% Average Price target 1Q20: €2.77 €2.65 €0.12 (4.3%)

1 End of period SOURCE: Bloomberg, REN

3. Closing remarks

CLOSING REMARKS

Lower EBITDA but a stable Net Profit

EBITDA was hurt by a reduction in both, returns and asset base, in all its domestic businesses as well as a higher than usual increase in costs mostly related to forest clearing, which will smooth out during the rest of the year.

Net Profit increased by €0.2M to €4.5M, as a result of the positive impact from Financial Results. This achievement portrays the commitment and constant efforts carried out by REN towards minimizing the cost of debt.

Net debt benefited from lower tariff deviations with more payments received.

REN issued its first Green Bond with a total of €300M. This green bond issue is part of REN's regular financing policy, maintaining its profile as a solid, low-risk company and aiming at maintaining an Investment Grade credit profile. The issue came two months after the company was certified by Institutional Shareholder Services (ISS-ESG) with a Prime rating and it was more than 5 times oversubscribed.

This morning REN will host its Capital Markets Day where it will unveil its strategy for the 2021-2024 period.

Appendix

APPENDIX Results breakdown

				1Q2021 / 1Q2020
€M	1Q2021	1Q2020	2020	Δ %	Δ Abs.
1) TOTAL REVENUES	176.3	172.9	758.5	2.0%	3.5
Revenues from assets	104.1	106.4	431.4	-2.1%	-2.3
Return on RAB	39.6	42.1	165.4	-5.9%	-2.5
Electricity	23.8	25.4	99.9	-6.6%	-1.7
Natural gas	10.3	11.0	43.1	-6.1%	-0.7
Portgás	5.6	5.7	22.4	-2.2%	-0.1
Lease revenues from hydro protection zone	0.2	0.2	0.7	-1.2%	0.0
Economic efficiency of investments	6.3	6.3	32.0	0.0%	0.0
Recovery of amortizations (net from subsidies)	53.4	53.4	214.3	0.0%	0.0
Subsidies amortization	4.7	4.5	19.0	5.1%	0.2
Revenues from Transemel	2.3	2.4	10.1	-6.5%	-0.2
Revenues of OPEX	34.8	33.4	130.1	4.3%	1.4
Other revenues	4.6	5.4	26.0	-14.0%	-0.8
Construction revenues (IFRIC 12)	30.5	25.3	160.9	20.5%	5.2
2) OPEX	36.0	32.8	145.8	9.7%	3.2
Personnel costs	13.7	13.6	55.6	0.8%	0.1
External supplies and services	17.5	13.1	68.5	33.6%	4.4
Other operational costs	4.8	6.1	21.6	-22.1%	-1.4
3) Construction costs (IFRIC 12)	25.8	21.0	142.0	22.9%	4.8
4) Depreciation and amortization	60.1	59.9	241.2	0.3%	0.2
5) Other	0.1	0.1	0.5	0.0%	0.0
6) EBIT	54.3	59.0	229.0	-8.0%	-4.7
7) Depreciation and amortization	60.1	59.9	241.2	0.3%	0.2
8) EBITDA	114.4	118.9	470.2	-3.8%	-4.5
9) Depreciation and amortization	60.1	59.9	241.2	0.3%	0.2
10) Financial result	-10.8	-13.6	-46.8	21.0%	2.9
11) Income tax expense	11.9	12.9	44.9	-7.4%	-1.0
12) Extraordinary contribution on energy sector	27.1	28.2	28.1	-3.8%	-1.1
13) NET PROFIT	4.5	4.3	109.2	4.0%	0.2
14) Non recurrent items	27.1	28.2	22.5	-3.8%	-1.1
15) RECURRENT NET PROFIT	31.6	32.5	131.7	-2.7%	-0.9

NON RECURRENT ITEMS: 1Q2021: i) Extraordinary energy sector levy, as established in the 2021 State budget law (€27.1M); 1Q2020: i) Extraordinary energy sector levy, as established in the 2020 State budget law (€28.2M)

APPENDIX

Other operational revenues and costs breakdown

				1Q2021 / 1Q2020
€M	1Q2021	1Q2020	2020	Δ %	Δ Abs.
Other revenues	4.6	5.4	26.0	-14.0%	-0.8
Allowed incentives	0.4	0.3	1.3	24.2%	0.1
Interest on tariff deviation	0.1	0.1	0.5	-19.9%	0.0
Telecommunication sales and services rendered	1.8	1.7	6.7	5.3%	0.1	Includes revenues related to
Consultancy services and other services provided	0.3	0.6	2.9	-46.8%	-0.3	Electrogas' Net Profit proportion
Other revenues	2.0	2.7	14.6	-23.1%	-0.6	(€1.4M in 1Q2021 and €2.0M in
Other costs	4.8	6.1	21.6	-22.1%	-1.4
Costs with ERSE	2.0	2.8	11.5	-28.5%	-0.8	1Q2020)
Other	2.8	3.4	10.1	-16.9%	-0.6

APPENDIX EBITDA breakdown (Electricity)

				1Q2021 / 1Q2020
€M	1Q2021	1Q2020	2020	Δ %	Δ Abs.
1) REVENUES	112.5	109.3	495.8	2.9%	3.2
Revenues from assets	68.8	70.5	288.9	-2.5%	-1.8
Return on RAB	23.8	25.4	99.9	-6.6%	-1.7
Lease revenues from hydro protection zone	0.2	0.2	0.7	-1.2%	0.0
Economic efficiency of investments	6.3	6.3	32.0	0.0%	0.0
Recovery of amortizations (net from subsidies)	35.4	35.7	143.2	-0.8%	-0.3
Subsidies amortization	3.2	3.0	13.1	7.0%	0.2
Revenues of OPEX	18.6	17.0	72.2	8.9%	1.5
Other revenues	0.9	1.3	8.3	-29.2%	-0.4
Interest on tariff deviation	0.1	0.1	0.4	-26.6%	0.0
Other	0.8	1.2	7.9	-29.4%	-0.3
Construction revenues (IFRIC 12)	24.3	20.5	126.4	18.6%	3.8
2) OPEX	15.3	13.2	68.3	15.7%	2.1
Personnel costs	4.1	4.4	17.1	-5.2%	-0.2
External supplies and services	10.1	6.7	40.0	50.1%	3.4
Other operational costs	1.1	2.2	11.1	-48.3%	-1.1
3) Construction costs (IFRIC 12)	20.9	17.3	112.2	20.5%	3.5
4) Depreciation and amortization	38.5	38.6	155.7	-0.2%	-0.1
5) Other	0.0	0.0	0.2	n.a	0.0
6) EBIT (1-2-3-4-5)	37.9	40.2	159.4	-5.8%	-2.3
7) Depreciation and amortization	38.5	38.6	155.7	-0.2%	-0.1
8) EBITDA (6+7)	76.4	78.8	315.1	-3.1%	-2.4

APPENDIX EBITDA breakdown (Natural gas transmission)

				1Q2021 / 1Q2020
€M	1Q2021	1Q2020	2020	Δ %	Δ Abs.
1) REVENUES	39.3	38.4	158.9	2.5%	0.9
Revenues from assets	25.8	26.3	104.5	-2.1%	-0.6
Return on RAB	10.3	11.0	43.1	-6.1%	-0.7
Recovery of amortizations (net from subsidies)	14.0	13.9	55.5	0.8%	0.1
Subsidies amortization	1.5	1.5	5.8	0.0%	0.0
Revenues of OPEX	11.2	10.7	40.9	4.4%	0.5
Other revenues	-0.2	-0.2	1.6	18.3%	0.0
Interest on tariff deviation	-0.1	-0.1	-0.4	9.9%	0.0
Consultancy services and other services provided	0.0	0.0	0.2	-100.0%	0.0
Other	-0.1	-0.1	1.8	25.5%	0.0
Construction revenues (IFRIC 12)	2.5	1.5	11.9	72.0%	1.1
2) OPEX	8.2	7.5	28.9	9.4%	0.7
Personnel costs	2.1	2.0	8.2	4.5%	0.1
External supplies and services	4.6	4.0	15.4	16.6%	0.7
Other operational costs	1.5	1.5	5.3	-2.9%	0.0
3) Construction costs (IFRIC 12)	2.0	1.0	9.7	96.3%	1.0
4) Depreciation and amortization	15.3	15.2	60.7	0.7%	0.1
5) Other	0.0	0.0	-0.1	n.a	0.0
6) EBIT	13.9	14.7	59.6	-5.8%	-0.9
7) Depreciation and amortization	15.3	15.2	60.7	0.7%	0.1
8) EBITDA	29.1	29.9	120.3	-2.5%	-0.7

A negative revenue is consistent with a negative tariff deviation

APPENDIX EBITDA breakdown (Portgás)

				1Q2021 / 1Q2020
€M	1Q2021	1Q2020	2020	Δ %	Δ Abs.
1) REVENUES	18.2	18.4	77.1	-1.1%	-0.2
Revenues from assets	9.5	9.5	38.0	0.6%	0.1
Return on RAB	5.6	5.7	22.4	-2.2%	-0.1
Recovery of amortizations (net from subsidies)	4.0	3.8	15.5	4.4%	0.2
Subsidies amortization	0.0	0.0	0.1	672.7%	0.0
Revenues of OPEX	5.0	5.6	16.9	-9.8%	-0.5
Other revenues	0.0	0.0	-0.5	-54.9%	0.0
Interest on tariff deviation	0.0	0.0	0.0	-62.7%	0.0
Adjustments previous years	0.0	0.0	-1.0	-38.2%	0.0
Other services provided	0.0	0.1	0.2	-87.7%	-0.1
Other	0.0	0.0	0.4	88.6%	0.0
Construction revenues (IFRIC 12)	3.6	3.3	22.6	9.2%	0.3
2) OPEX	4.1	4.1	13.0	-2.3%	-0.1
Personnel costs	1.0	1.1	4.2	-1.7%	0.0
External supplies and services	1.1	0.7	3.9	56.0%	0.4
Other operational costs	1.9	2.4	4.9	-19.2%	-0.5
3) Construction costs (IFRIC 12)	3.0	2.7	20.1	10.4%	0.3
4) Depreciation and amortization	4.1	3.9	15.8	4.9%	0.2
5) Other	0.0	0.0	0.0
6) EBIT	7.1	7.7	28.2	-7.6%	-0.6
7) Depreciation and amortization	4.1	3.9	15.8	4.9%	0.2
8) EBITDA	11.2	11.6	44.0	-3.4%	-0.4

APPENDIX EBITDA breakdown (Transemel)

€M	1Q2021	1Q2020
1) REVENUES	2.3	2.4
2) OPEX	1.1	0.8
3) Depreciation and amortization	0.4	0.4
4) EBIT	0.8	1.3
5) Depreciation and amortization	0.4	0.4
6) EBITDA	1.2	1.7

APPENDIX EBITDA breakdown (Other¹ )

				1Q2021 / 1Q2020
€M	1Q2021	1Q2020	2020	Δ %	Δ Abs.
1) TOTAL REVENUES	4.0	4.3	16.5	-7.7%	-0.3
Other revenues	4.0	4.3	16.5	-7.7%	-0.3
Allowed incentives	0.4	0.3	1.3	24.2%	0.1
Interest on tariff deviation	0.1	0.1	0.4	8.7%	0.0
Telecommunication sales and services rendered	1.8	1.7	6.7	5.3%	0.1
Consultancy services and other services provided	0.1	0.1	0.6	44.1%	0.0
Other	1.5	2.1	7.5	-26.1%	-0.5
2) OPEX	7.4	7.2	32.2	2.8 %	0.2
Personnel costs	6.3	6.1	25.8	3.2%	0.2
External supplies and services	0.9	1.0	6.1	-5.0%	0.0
Other operational costs	0.1	0.1	0.4	88.0%	0.1
3) Depreciation and amortization	1.9	1.9	7.4	-2.8%	-0.1
4) Other	0.1	0.1	0.4	0.0%	0.0
5) EBIT	-5.4	-4.9	-23.5	-9.6%	-0.5	Includes the negative impacts of the
6) Depreciation and amortization	1.9	1.9	7.4	-2.8%	-0.1	PPAs2 of Portgás (€1.4M) and
7) EBITDA	-3.5	-3.0	-16.0	-17.6%	-0.5	Transemel (€0.5M) in 1Q2021

APPENDIX Capex and RAB

				1Q2021 / 1Q2020
€M	1Q2021	1Q2020	2020	Δ %	Δ Abs.
CAPEX	31.8	27.0	173.3	17.9%	4.8
Electricity	24.3	20.5	126.4	18.6%	3.8
Natural gasT	2.5	1.5	11.9	72.0%	1.1
Natural gasD	3.6	3.3	22.6	9.2%	0.3
Transemel	1.2	1.6	12.1	-24.0%	-0.4
Other	0.1	0.1	0.3	34.3%	0.0	Transfers to RAB include
Transfers to RAB	7.7	4.9	79.6	57.8%	2.8
Electricity	3.0	0.9	45.1	213.0%	2.0	direct acquisitions RAB related
Natural gasT	1.5	-	12.6		1.5
Natural gasD	3.2	3.9	21.8	-18.7%	-0.7
Average RAB	3,541.2	3,714.2	3,635.0	-4.7%	-173.0
Electricity	1,940.4	2,054.0	2,000.0	-5.5%	-113.7
With premium	1,027.1	1,076.7	1,058.5	-4.6%	-49.6
Without premium	913.3	977.4	941.5	-6.6%	-64.1
Land	210.2	222.5	217.9	-5.5%	-12.3
Natural gasT	917.8	960.1	945.5	-4.4%	-42.3
Natural gasD	472.8	477.6	471.6	-1.0%	-4.8
RAB e.o.p.	3,518.1	3,689.6	3,564.2	-4.6%	-171.6
Electricity	1,925.7	2,038.2	1,954.9	-5.5%	-112.5
With premium	1,020.6	1,069.7	1,033.4	-4.6%	-49.2
Without premium	905.2	968.5	921.5	-6.5%	-63.3
Land	208.7	221.0	211.7	-5.6%	-12.3
Natural gasT	911.6	953.1	924.0	-4.4%	-41.6
Natural gasD	472.1	477.3	473.5	-1.1%	-5.2

APPENDIX RAB

				1Q2021 / 1Q2020
€M	1Q2021	1Q2020	2020	Δ %	Δ Abs.
RAB's remuneration	39.8	42.3	166.1	-5.9%	-2.5
Electricity	23.8	25.4	99.9	-6.6%	-1.7
With premium	13.5	14.3	56.6	-5.7%	-0.8
Without premium	10.3	11.1	43.3	-7.8%	-0.9
Land	0.2	0.2	0.7	-1.2%	0.0
Natural gasT	10.3	11.0	43.1	-6.1%	-0.7
Natural gasD	5.6	5.7	22.4	-2.2%	-0.1
RoR's RAB	4.5%	4.6%	4.6%		-0.1p.p.
Electricity	4.9%	5.0%	5.0%		-0.1p.p.
With premium	5.3%	5.3%	5.3%		-0.1p.p.
Without premium	4.5%	4.6%	4.6%		-0.1p.p.
Land	0.3%	0.3%	0.3%		0.0p.p.
Natural gasT	4.5%	4.6%	4.6%		-0.1p.p.
Natural gasD	4.7%	4.8%	4.8%		-0.2p.p.

APPENDIX Tariff deviations

€M	1Q2021	4Q2020	1Q2020
Electricity	25.4	75.1	30.4
Trading	91.6	156.0	159,9
Natural gasT	-102.2	-79.1	-57.2
Natural gasD	-7.9	-2.9	-8.7
Total1	7.0	149.0	124.6

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

APPENDIX Funding sources

		Non
€M	Current	Current	Mar 2021
Bonds	0.0	1,439.0	1,439.0
Bank borrowings	96.8	574.1	670.9
Commercial paper	430.0	250.0	680.0
Bank overdrafts	9.2	0.0	9.2
Finance lease	1.5	2.7	4.2
TOTAL	537.5	2,265.9	2,803.3
Accrued interest	12.9	0.0	12.9
Prepaid interest	-7.5	-8.5	-16.0
TOTAL	542.9	2,257.4	2,800.3

• REN maintained its financial strength and continued to present high liquidity and a low average cost of debt;
• REN's total liquidity reached €1,041M, including credit facilities, loans, non-used commercial paper programmes, cash and bank deposits;
• Bank borrowings were mainly represented by EIB loans, which at the 31st of March 2021 amounted to €480.1M (€480.8M at the 31st of December of 2020);
• The Group had credit lines negotiated and not used in the amount of €80M, maturing up to one year, which are automatically renewed periodically (if they are not resigned in the contractually specified period for that purpose);
• REN also had eight active commercial paper programmes in the amount of €1,925M, of which €1,245M were available for use;
• REN's financial liabilities had the following main types of covenants: Cross Default, Pari Passu, Negative Pledge and Gearing;
• The effect of the foreign exchange rate exposure was not considered as this exposure is totally covered by a hedge derivate in place. The average interest rates for borrowings, including commissions and other expenses, was 1.58% on the 31st March 2021 and 1.81% on the 31st of December 2020.

APPENDIX Debt and debt metrics

	1Q2021	1Q2020	2020
Net Debt (€M)	2,547.9	2,750.3	2,741.9
Average cost	1.6%	1.8%	1.8%
Average maturity (years)	3.2	3.5	3.4
Net Debt / EBITDA	5.6x	5.8x	5.8x
DEBT BREAKDOWN
Funding sources
Bond issues	51.2%	60.6%	50.8%
EIB	17.3%	15.8%	17.2%
Commercial paper	24.5%	15.8%	25.0%
Other	7.0%	7.8%	7.0%
TYPE
Float	35%	41%	38%
Fixed	65%	59%	62%

RATING	Long term	Short term	Outlook	Date
Moody's	Baa3	-	Stable	05/06/2020
Standard & Poor's	BBB	A-2	Stable	19/11/2019
Fitch	BBB	F3	Negative	05/06/2020

CMVM: MAIN PRESS RELEASES (from January 2021)

• Jan-09: Qualified shareholding from Great-West Lifeco
• Feb-17: Summary of annual information disclosed in 2020
• Mar-18: 2020 annual consolidated results
• Mar-23: Notice to convene the annual general shareholders meeting and deliberation proposals
• Mar-23 : Accounts reporting documents referring to the financial year ended on 31st December 2020 item 1 of the agenda for the general shareholders meeting
• Mar-23 : Corporate Governance report included in the 2020 Report and Accounts
• Apr-09: Issuance of 300 million euros of green bonds
• Apr-23: Resolutions approved at the Annual General Shareholders Meeting
• Apr-30: Payment of dividends of the 2020 financial year

Consolidated Financial Statements

CONSOLIDATED FINANCIAL STATEMENTS

Financial position

Thousand Euros	Mar 2021	Dec 2020	Thousand Euros	Mar 2021	Dec 2020
ASSETS			EQUITY
Non-current assets			Shareholders' equity:
Property, plant and equipment	131,479	127,119	Share capital	667,191	667,191
Intangible assets	4,103,292	4,130,562	Own shares	-10,728	-10,728
Goodwill	5,337	5,367	Share premium	116,809	116,809
Investments in associates and joint ventures	162,082	158,845	Reserves	296,014	289,887
Investments in equity instruments at fair value through other comprehensive income	141,780	150,850	Retained earnings	350,148	240,853
Derivative financial instruments	19,632	25,685	Other changes in equity	-5,561	-5,561
Other financial assets	110	102	Net profit for the period	4,491	109,249
Trade and other receivables	47,335	45,507	TOTAL EQUITY	1,418,365	1,407,700
Deferred tax assets	99,487	92,575
	4,710,533	4,736,611	LIABILITIES
Current assets			Non-current liabilities
Inventories	2,351	2,450	Borrowings	2,257,381	2,260,875
Trade and other receivables	396,383	448,099	Liability for retirement benefits and others	99,306	100,507
Current income tax recoverable	0	0	Derivative financial instruments	26,684	29,215
Derivative financial instruments	0	0	Provisions	8,508	8,508
Other financial assets	0	0	Trade and other payables	419,351	371,886
Cash and cash equivalents	236,221	61,499	Deferred tax liabilities	123,530	144,969
	634,954	512,048		2,934,760	2,915,960
TOTAL ASSETS	5,345,488	5,248,658	Current liabilities
			Borrowings	542,886	562,557
			Trade and other payables	403,977	353,800
			Income tax payable	45,500	8,641
				992,363	924,999

TOTAL LIABILITIES 3,927,123 3,840,958

TOTAL EQUITY AND LIABILITIES 5,345,488 5,248,658

CONSOLIDATED FINANCIAL STATEMENTS

Profit and loss

Thousand Euros	Mar 2021	Mar 2020
Sales	31	0
Services rendered	137,220	138,079
Revenue from construction of concession assets	30,476	25,288
Gains / (losses) from associates and joint ventures	1,473	2,046
Other operating income	7,323	7,440
Operating income	176,523	172,854
Cost of goods sold	-195	-165
Costs with construction of concession assets	-25,844	-21,032
External supplies and services	-17,568	-13,211
Personnel costs	-13,664	-13,493
Depreciation and amortizations	-60,087	-59,920
Provisions	0	0
Impairments	-94	-94
Other expenses	-4,584	-5,970
Operating costs	-122,038	-113,884
Operating results	54,485	58,969
Financial costs	-12,152	-14,953
Financial income	1,193	1,341
Investment income - dividends	0	0
Financial results	-10,959	-13,611
Profit before income tax and ESEC	43,526	45,358
Income tax expense	-11,940	-12,891
Energy sector extraordinary contribution (ESEC)	-27,095	-28,165
Net profit for the period	4,491	4,302
Attributable to:
Equity holders of the Company	4,491	4,302
Non-controlled interest	0	0
Consolidated profit for the period	4,491	4,302
Earnings per share (expressed in euro per share)	0.01	0.01

CONSOLIDATED FINANCIAL STATEMENTS

Cash flow

Thousand Euros	Mar 2021	Mar 2020
Cash flow from operating activities
Cash receipts from customers	595,208	664,797 a)
Cash paid to suppliers	-348,498	-508,520 a)
Cash paid to employees	-15,798	-15,106
Income tax received/ paid	-2,109	-2,195
Other receipts / (payments) relating to operating activities	19,587	-8,079
Net cash flows from operating activities (1)	248,391	130,896
Cash flow from investing activities
Receipts related to:
Investments in associates	0	0
Property, plant and equipment	0	0
Other financial assets	0	0
Investment grants	1,286	184
Interests and other similar income	0	0
Dividends	1,477	1,477
Payments related to:
Other financial assets	0	0
Financial investments	0	0
Equity instruments through other comprehensive income	0	0
Property, plant and equipment	0	-1,926
Intangible assets - Concession assets	-47,242	-42,567
Net cash flow used in investing activities (2)	-44,480	-42,833
Cash flow from financing activities
Receipts related to:
Borrowings	465,000	815,500
Capital and supplementary obligations	0	0
Interests and other similar income	0	0
Payments related to:
Borrowings	-486,465	-869,312
Interests and other similar expense	-16,844	-17,637
Dividends	0	0
Net cash from / (used in) financing activities (3)	-38,308	-71,449
Net (decrease) / increase in cash and cash equivalents (1)+(2)+(3)	165,603	16,614
Effect of exchange rates	264	-877
Cash and cash equivalents at the beginning of the year	61,169	20,521
Changes in the perimeter	0	0
Cash and cash equivalents at the end of the period	227,037	36,259
Detail of cash and cash equivalents
Cash	24	28
Bank overdrafts	-9,185	-1,610
Bank deposits	236,197	37,841
	227,037	36,259

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. 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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Ana Fernandes – Head of IR Alexandra Martins Telma Mendes José Farinha

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