REN-Redes Energeticas Nacionais

Earnings Release • May 14, 2021

Results Presentation 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

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

2.6 1.4 1.2 International Transemel (100%) Electrogas (42.5%) 1.2 1.2 N/A International Electrogas (42.5%) Transemel (100%) Contribution to Capex 1Q21 €M Share in REN total % Share in REN total % 1Q20 contribution €M 1Q20 contribution €M Electrogas, Chile higher opex 1Q20: €2.4M Revenues 1Q20: €8.6M Revenues 2.3 1.1 1.2 3.9 3.9 0.0 3.6 1.6 2.0 1.6 1.6 N/A

Key highlights

Transemel, Chile

Revenues decreased YoY mainly driven by lower revenues and

1Q20: €1.6M

€1.2M €0.4M

EBITDA

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.

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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