REN-Redes Energeticas Nacionais

Earnings Release • Jul 28, 2022

Results Report REN 1H22

28th July 2022

AGENDA

1. Overview of the period

1. Overview of the period

KEY MESSAGES 1H22

EBITDA increased 4.6% YoY to €238.4M, partly due to the Domestic EBITDA performance (+€6.8M) which reflects higher assets and opex remuneration (+€9.3M), partly offset by higher core opex (+€2.3M), due to higher electricity costs (+€5.3M).

Positive contribution from international business, which EBITDA increased +€3.7M, with Transemel representing +€1.8M.

Net Profit grew to €45.9M (an increase of 16.0% versus 1H21), mostly due to increase in EBIT (+€6.5M) and better Financial Results (+€3.0M), partially offset by higher taxes (+€2.2M) and heavier levy (+€0.9M), following the increase in RAB.

Capex decreased €0.6M to €78.8M, remaining in line with 1H21 (€79.3M). Transfers to RAB increased €5.2M to €22.0M vs 1H21, mostly attributed to the electricity transmission business (which grew €4.7M), partially offset by the decrease in Natural Gas transmission (-€1.0M).

Renewable energy sources (RES) amounted to 47.5% of total supply (approx.-20.9pp than in 1H21), due to lower availability of renewable energy, as a result of current environment conditions. Electricity consumption increased 2.9% whilst natural gas fell by 1.2%.

Quality of Service remains our priority, as highlighted by the lower level of energy transmission losses in electricity, the higher combined availability rate for both electricity and gas and better response time in emergency situations in Natural Gas Distribution.

SECTOR OVERVIEW

Commitment to hydrogen infrastructure and energy transition

Hydrogen Readiness

Decree-Law n.º 30-A/2022 (Renewables and Hydrogen) +

Decree-Law n.º 33/2022 & Directive n.º 13-A/2022 (exceptional adjustment of electricity production costs)

Relevant national gas infrastructures must become hydrogen ready according to the Portuguese law, to allow H² and natural gas blends up 5% in 2025 and 10-15% in 2030. Considering this REN intends to award the main infrastructure adequacy studies (transmission, distribution and underground storage) until September 2022.

Publication of Decree-Law n.º 30-A/2022, approves exceptional measures aimed at ensuring the simplification of procedures for producing energy from renewable sources in Portugal. This new Decree-Law proposes to increase the production of biomethane and renewable hydrogen, the deployment of solar and wind energy, the deployment of innovative solutions based on hydrogen and electricity from renewable sources at competitive costs in industrial sectors, as well as the simplification and reduction of the deadlines of the permitting procedures, which is a precondition for the acceleration of renewable energy projects.

The Portuguese and Spanish Governments created a temporary adjustment mechanism for electricity production costs with impact on the final MIBEL electricity prices. This is an exceptional and temporary mechanism for MIBEL prices, by setting a reference price of natural gas for electricity production, in order to reduce the final electricity prices. This mechanism entered in force on 15th of June 22.

PDIRD 2022

Gas Development Plan 2023-2027

ERSE submitted for public consultation the proposals for a five-year plan for the development and investment of gas distribution networks on period 2023-2027 (PDIRD 2022), prepared by the DSOs. The total amount to be implemented over the five-year horizon reaches €468.4 million which represents an increase of 28% vs PDIRD 2020. The public consultation will end on 22nd of July and then ERSE will have 22 days to publish the final opinion report.

• Energy Transition and renewable gas
• The "H² Green Valley" project, that REN submitted to the Portuguese Recovery and Resilience Plan (PRR), was selected for the negotiation phase with IAPMEI. The financing agreement with Portuguese government can be signed in the upcoming weeks.

2. Business performance

OPERATIONAL HIGHLIGHTS

Solid quality of service, with a reduction in transmissions losses despite increase in electricity consumption

Electricity	Consumption	Energy transmission losses	Line length
	0.7 TWh 25.3TWh (2.9%)	1.8% 0.3pp	335km 9,373km (3.7%)
	1H21: 24.6TWh	1H21: 2.1%	1H21: 9,038km
	Renewables in consumption supply	Average interruption time	Combined availability rate
	47.5% 20.9pp	0.07min 0.07min	98.7% 0.3pp
	1H21: 68.4%	1H21: 0.00min	1H21: 99.0%
Gas Transmission	Consumption	Combined availability rate	Line length
	0.4TWh 31.2TWh (1.2%)	100.0% 0.1pp	0km 1,375km (0.0%)
	1H21: 31.6TWh	1H21: 99.9%	1H21: 1,375km
Gas Distribution	Gas distributed	Emergency situations with response time up to 60min	Line length
	0.7TWh 3.4TWh (17.1%)	98.5% 0.3pp	233km 6,210km (3.9%)
	1H21: 4.1TWh	1H21: 98.2%	1H21: 5,977km

FINANCIAL HIGHLIGHTS

Net Profit grew 16% driven by an EBIT increase and positive impact from Financial Results

Increase in EBITDA driven by higher assets and opex remuneration in domestic business and positive contribution from Chile

EBITDA evolution breakdown €M

1 Includes electricity regulatory incentives (in 1H21 €13.4M from the Incentive for the Rationalization of Economic Investments, and in 1H22 €3.8M from the Incentive to the Improvement of the TSO Technical Performance) and excludes Opex remuneration related to pass-through costs | 2. Includes REN Trading incentives, telecommunication sales and services rendered, interest on tariff deviation, consultancy revenues and other services provided, OMIP and Nester results | 3. Includes Apolo SpA and Aerio Chile SpA costs | 4 Excludes the segment "Other", which includes REN SGPS, REN Serviços, REN Telecom, REN Trading, REN PRO and REN Finance B.V. | 5 Refers to Portgás

EBITDA contribution by business segment⁴ %

Bond yields presented an increase in 2022 as consequence of current macro environment

Portuguese 10Y Treasury Bond Yields % Base Rate of Return on RAB (RoR)* %

Transfers to RAB grew 30.6% and Capex remained mostly in line with 1H21

Transfers to RAB €M

Capex €M

Main investment projects

Electricity

• 220 kV connection between Rio Maior and Carvoeira substations
• Refurbishing of the 220 kV Gas Insulated substation at Carriche
• Rehabilitation and stabilization of the slope at the Carvoeira substation
• 400 kV Line Panel at Sines substation to connect to a photovoltaic solar plant (Cercal Power)

Gas Transmission

• Carriço Storage: Auxiliary System upgrade
• Pipeline Network and Sines Terminal: replacement and upgrade of equipment and systems at the end-of-life

Gas Distribution

• Investments for network expansion and densification, mostly for B2C
• New prospects for B2B investments closely monitored in order to provide client comfort regarding network costs
• Decarbonizing and digitalization plan on the move
• New investment plan 23-27 delivered to DGEG and ERSE (April 2022), now under discussion
• Expansion to new industrial zones under preparation

Average RAB increased 2.5% in 1H22 due to impact of transfers to RAB from 2021

Average RAB evolution €M

RAB remuneration increased as a result of the higher rate of return

Return on RAB evolution breakdown €M

Increase in the average RAB by €2.3M, to €39.3M and increase in RoR (from 4.51% to 4.65%)

Increase in Return on RAB justified by a higher RoR of 5.03% (vs 4.52%), despite the smaller asset base (decrease of €27.2M to a total of €884.0M)

OPEX decreased by 0.7% YoY, while core OPEX grew 4.2%

Core OPEX¹ evolution €M

Key highlights

Core external costs

• Electricity costs in LNG terminal (+€5.3M)

Non-core costs

• Pass-through costs (costs accepted in the tariff) decreased by €2.8M, of which -€1.5M in costs with cross-border and system services costs, -€1.6M in costs with ERSE and +€0.5M in subsoil occupation levies

DOMESTIC BUSINESS: ELECTRICITY

Increase in Electricity EBITDA, mostly justified with higher assets and opex remuneration, despite a lower regulatory incentive

EBITDA breakdown €M

1 Excludes Opex remuneration related to pass-through costs | 2. Includes electricity regulatory incentives (in 1H21 €13.4M from the Incentive for the Rationalization of Economic Investments, and in 1H22 €3.8M from the Incentive to the Improvement of the TSO Technical Performance) | 3 Includes €1,012.2M of Electricity without premium (€905.0M for 1H21), €1,028.9M of Electricity with premium (€1,020.2M for 1H21) and €196.4M of Lands (€208.7M in 1H21) | 3. RoR for Electricity with premium was 5.4% in 1H22 (5.3% in 1H21), and for other lands 0.3% in 1H22 (0.3% in 1H21)

DOMESTIC BUSINESS: GAS TRANSMISSION

Gas Transmission EBITDA reduction mainly explained by lower opex contribution

1. Business performance

1H21: €9.1M

DOMESTIC BUSINESS: GAS DISTRIBUTION

1H21: €9.4M

Gas Distribution EBITDA increase mainly explained by higher RAB remuneration and other revenues

EBITDA breakdown €M

1H21: €470.1M 1H21: 4.7%

1H21: €4.8M

Electrogas (42.5%)

0.0

INTERNATIONAL BUSINESS

Solid performance from the Chilean businesses

0.0

N/A

Key highlights

Transemel, Chile

Revenues increased YoY reflecting the conclusion of expansion projects started in 2021

1H21: €3.2M

EBITDA

Electrogas, Chile

EBITDA increased YoY, driven by higher revenues (higher tariff and higher transported volumes)

1H21: €13.4M €19.9M €6.5M (48.8%)

Positive evolution in Financial Results, partly attributed to the progress in recognized dividends

the average cost of debt of 0.08 p.p.

from 1.58% to 1.66%.

• Effective tax rate reached 39.6%, a 1.2 p.p. decrease relatively to 1H21 (including the levy).
• Increase vs 1H21 reflecting the increase in EBT (+€9.5M).
• Taxes (1H22 and 1H21) benefited from tax recovery of previous years.

Net Profit benefited from higher EBITDA and better financial results, despite higher depreciations, taxes and CESE

Net profit evolution breakdown €M Key highlights

• The increase in EBITDA reflects the positive contribution from both the domestic (+€6.8M) as well as international businesses (+€3.7M)
• Positive effect of €3.0M from Financial Results as a consequence of better financial conditions, lower net debt and higher dividends from associates
• Higher CESE (Δ€0.9M) and higher taxes, reflecting the evolution of the regulated asset base

Net Debt artificially low due to the impact of tariff deviations

1 Calculated as Net Debt plus Cash, bank deposits and derivative financial instruments (€496M), excluding effects of hedging on yen denominated debt, accrued interest and bank overdrafts | 2 Includes loans (1.7%) and leasing (0.2%) | 3 Net Debt Value without tariff deviations

SHARE PRICE & SHAREHOLDER RETURN

REN's share price has been rising since March, closing 1H22 with a TSR of 19% outperforming the sector

Analyst recommendations¹

1 End of period

SOURCE: Bloomberg, REN

% TSR 1H21

% TSR 1H22

3. Shaping a sustainable future

HIGHEST ESG STANDARDS

REN is taking sustainable steps towards meeting its targets

-50% CO2 emissions by 2030 vs. 2019

Carbon neutral by 2040

Targets Achievements

Climate | 25% reduction in our scope 1 and 2 emissions (2021 vs. 2020) | In 2022, REN concluded a supply chain's ESG maturity assessment and kicked-off of a project to calculate its scope 3 emissions' inventory

Forest | Innovative approach with local partners in Vieira do Minho area using Garrano horses to prevent forest fires on Cabreira Mountain, while creating conditions to protect this local endangered species

Mobility | REN presented at the Hannover Messe the Speed-e project, an innovative charging solution that enables electric vehicles to be charged directly from the electricity transmission grid. This solution can also be used for electricity supply to remote communities or industrial facilities.

Gender equality | REN joined the Portuguese Diversity Charter, an initiative of the European Commission

Local communities | In June, REN delivered seven vehicles to voluntary fire brigades, reinforcing the company's commitment to the prevention and fighting rural wildfires. Since 2009, REN has donated 89 vehicles to both voluntary fire brigades and civil protection teams

Sustainability governance | REN created a Sustainability Committee at Board level

Cybersecurity | Reinforcement of mandatory training for all employees and internal communication awareness campaign

>1/3 of women in 1st line management positions by 2030

Increasing ESG weight in managers' performance metrics already in 2022

100% of new bond

HIGHEST ESG STANDARDS

Good performance in international ESG scores but with ambition to do more

Assessment of resilience to long-term ESG risks, REN demonstrated strong efforts on Biodiversity & Land use relative to peers, and in line with its global peers' average on Corporate Governance

MSCI ESG Rating Sustainalytics ESG Rating ISS ESG Rating

• Measurement of a company's exposure to industry-specific material ESG risks and how well a company is managing those risks
• REN demonstrated low risk, which is aligned with the ratings received by peers and above sector average

Assessment of sustainability performance, based on specific criteria for each industry. REN ranked very high on transparency level

4. Closing remarks

CLOSING REMARKS

REN remains fully committed to deliver solid results and sustainable returns

EBITDA of €238.4M, an increase of €10.5M YoY (+4.6%), as a result of the increase in domestic and international business performances.

Net Profit increased to €45.9M (+€6.3M), driven by an increase in EBIT (+€6.5M) and higher Financial Results (+€3.0M), partially offset by higher levy (+€0.9M) and taxes (+€2.2M), following the evolution on regulated asset base.

Positive consolidation in Net Debt (-€440.5M YoY) as the operating cash flow and tariff deviations exceeded the outflows of investment and financing activities.

Capex remained in line with 1H21 while transfers to RAB grew 30.6% (+€5.2M) to €22.0M.

REN's share performance continues to deliver value to its shareholder, closing 1H22 with a TSR of 19% outperforming the sector.

Appendix - Financials

APPENDIX Results breakdown

				1H22 / 1H21
€M	1H22	1H21	2021	Δ %	Δ Abs.
1) TOTAL REVENUES	378.4	368.6	838.4	2.6%	9.8
Revenues from assets	95.9	101.4	203.8	-5.5%	-5.5
Return on RAB	35.7	32.5	65.3	10.0%	3.3
Electricity	0.9	0.8	1.8	9.4%	0.1
Natural gas	22.2	20.6	41.2	8.0%	1.6
Portgás	12.6	11.0	22.3	13.9%	1.5
Lease revenues from hydro protection zone	0.3	0.3	0.7	-1.3%	0.0
Incentives (IMDT and IREI)1	3.8	13.4	26.9	-72.1%	-9.7
Recovery of amortizations (net from subsidies)	47.0	45.9	92.2	2.5%	1.1
Subsidies amortization	9.1	9.3	18.7	-2.5%	-0.2
Revenues from Transemel	6.3	4.7	12.0	34.2%	1.6
Revenues of TOTEX2	134.7	122.7	250.5	9.8%	12.0
Revenues of OPEX	53.1	53.1	111.3	0.0%	0.0
Other revenues	12.2	10.1	23.0	20.7%	2.1
Construction revenues (IFRIC 12)	76.1	76.5	237.9	-0.6%	-0.5
2) OPEX	73.6	74.1	161.1	-0.6%	-0.5
Personnel costs	29.4	28.7	57.2	2.4%	0.7
External supplies and services	34.5	35.0	84.2	-1.3%	-0.5
Other operational costs	9.6	10.4	19.8	-6.8%	-0.7
3) Construction costs (IFRIC 12)	65.7	66.5	215.3	-1.2%	-0.8
4) Depreciation and amortization	124.2	120.2	241.9	3.3%	4.0
5) Other	0.7	0.2	1.2	278.9%	0.5
6) EBIT	114.1	107.6	218.9	6.0%	6.5
7) Depreciation and amortization	124.2	120.2	241.9	3.3%	4.0
8) EBITDA	238.4	227.9	460.8	4.6%	10.5
9) Depreciation and amortization	124.2	120.2	241.9	3.3%	4.0
10) Financial result	-15.1	-18.0	-42.6	-16.5%	3.0
11) Income tax expense	25.2	23.0	52.1	9.7%	2.2
12) Extraordinary contribution on energy sector	28.0	27.1	27.0	3.5%	0.9
13) NET PROFIT	45.9	39.5	97.2	16.0%	6.3
14) Non recurrent items	25.7	24.8	24.7	3.8%	0.9
15) RECURRENT NET PROFIT	71.6	64.3	121.8	11.3%	7.3

NON RECURRENT ITEMS:
1H22: i) Extraordinary energy sector
levy, as established in the
2022 State budget law
(€28.0M);
ii) Taxes recovery from
previous years (€2.3M)
1H21: i) Extraordinary energy sector
levy, as established in the
2021 State budget law
(€27.1M)
ii) Taxes recovery from
previous years (€2.3M)

1 2022: Incentive for improvement of the TSO's technical performance (IMDT); 2021: IREI incentive | 2 In 2022, a new remuneration model based on Totex was introduced for the Electricity Transmission activity. For that reason, and for the sake of comparison, some items regarding 1H21 and 2021 information, such as Return on RAB, Recovery of amortizations (net from subsidies) and Opex revenues of the electricity transmission activity were reclassified to Totex Revenues.

APPENDIX

Other operational revenues and costs breakdown

				1H22 / 1H21
€M	1H22	1H21	2021	Δ %	Δ Abs.
Other revenues	12.2	10.1	23.0	20.7%	2.1
Allowed incentives	0.4	0.7	1.0	-47.8%	-0.4
Interest on tariff deviation	-0.1	0.2	0.3	-166.9%	-0.3
Telecommunication sales and services rendered	3.9	3.5	7.7	13.2%	0.5
Consultancy services and other services provided	1.4	0.6	2.0	142.5%	0.8	Includes revenues related to
Other revenues	6.6	5.1	12.0	28.3%	1.4	Electrogas' Net Profit proportion
Other costs	9.6	10.4	19.8	-6.8%	-0.7	(€4.8M in 1H22 and €2.9M in 1H21)
Costs with ERSE	3.4	5.0	10.9	-32.3%	-1.6
Other	6.3	5.4	8.9	16.6%	0.9

APPENDIX EBITDA breakdown (Electricity¹ )

				1H22 / 1H21
€M	1H22	1H21	2021	Δ %	Δ Abs.
1) REVENUES	237.5	236.0	546.0	0.6%	1.5
Revenues from assets	21.5	30.8	62.0	-30.3%	-9.3
Return on RAB	0.9	0.8	1.8	9.4%	0.1
Lease revenues from hydro protection zone	0.3	0.3	0.7	-1.3%	0.0
Incentive2 IMDT	3.8	13.4	26.9	-72.1%	-9.7
Recovery of amortizations (net from subsidies)	10.2	9.9	19.8	3.3%	0.3
Subsidies amortization	6.3	6.4	12.8	-0.6%	0.0
Revenues of TOTEX3	134.7	122.7	250.5	9.8%	12.0
Revenues of OPEX	19.0	21.8	46.0	-12.5%	-2.7
Other revenues	1.5	2.4	6.3	-34.5%	-0.8
Interest on tariff deviation	0.1	0.1	0.3	-6.7%	0.0
Other	1.4	2.2	6.0	-36.3%	-0.8
Construction revenues (IFRIC 12)	60.6	58.3	181.3	4.0%	2.3
2) OPEX	24.8	31.0	65.9	-20.3%	-6.3
Personnel costs	8.8	8.6	16.9	1.7%	0.1
External supplies and services	14.3	19.1	41.0	-25.5%	-4.9
Other operational costs	1.7	3.3	7.9	-47.6%	-1.6
3) Construction costs (IFRIC 12)	53.2	50.9	164.7	4.5%	2.3
4) Depreciation and amortization	80.2	77.0	155.0	4.2%	3.2
5) Other	0.5	0.0	0.8		0.5
6) EBIT	78.8	77.1	159.6	2.2%	1.7
7) Depreciation and amortization	80.2	77.0	155.0	4.2%	3.2
8) EBITDA	159.0	154.1	314.6	3.2%	4.9

1 Includes Electricity and Enondas (wave energy concession) | 2 Incentive for improvement of the TSO's technical performance | 3 In 2022, a new remuneration model based on Totex was introduced for the Electricity Transmission activity. For that reason, and for the sake of comparison, some items regarding 1H21 and 2021 information, such as Return on RAB, Recovery of amortizations (net from subsidies) and Opex revenues of the electricity transmission activity were reclassified to Totex Revenues.

APPENDIX EBITDA breakdown (Natural gas transmission)

				1H22 / 1H21
€M	1H22	1H21	2021	Δ %	Δ Abs.
1) REVENUES	80.6	82.2	180.9	-1.9%	-1.6
Revenues from assets	53.4	51.5	103.4	3.7%	1.9
Return on RAB	22.2	20.6	41.2	8.0%	1.6
Recovery of amortizations (net from subsidies)	28.5	28.0	56.4	1.6%	0.5
Subsidies amortization	2.7	2.9	5.8	-6.9%	-0.2
Revenues of OPEX	23.8	21.4	48.3	11.2%	2.4
Other revenues	-0.5	0.2	-0.3	-377.8%	-0.7
Interest on tariff deviation	-0.2	-0.2	-0.4	28.9%	-0.1	A negative revenue is consistent with
Consultancy services and other services provided	0.1	0.1	0.1	3.2%	0.0	a negative tariff deviation
Other	-0.3	0.3	0.0	-209.6%	-0.7
Construction revenues (IFRIC 12)	3.9	9.1	29.5	-56.7%	-5.2
2) OPEX	21.6	16.2	42.4	33.0%	5.4
Personnel costs	4.1	4.4	8.7	-6.6%	-0.3
External supplies and services	14.4	9.0	28.2	59.7%	5.4
Other operational costs	3.1	2.8	5.6	9.9%	0.3
3) Construction costs (IFRIC 12)	2.7	7.9	26.8	-66.4%	-5.3
4) Depreciation and amortization	30.8	30.6	61.5	0.6%	0.2
5) Other	0.0	0.0	-0.1		0.0
6) EBIT	25.6	27.4	50.3	-6.8%	-1.9
7) Depreciation and amortization	30.8	30.6	61.5	0.6%	0.2
8) EBITDA	56.4	58.0	111.8	-2.9%	-1.7

APPENDIX EBITDA breakdown (Portgás)

				1H22 / 1H21
€M	1H22	1H21	2021	Δ %	Δ Abs.
1) REVENUES	43.4	37.6	81.8	15.3%	5.7
Revenues from assets	21.0	19.0	38.4	10.0%	1.9
Return on RAB	12.6	11.0	22.3	13.9%	1.5
Recovery of amortizations (net from subsidies)	8.3	8.0	16.0	4.5%	0.4
Subsidies amortization	0.1	0.0	0.1	28.2%	0.0
Revenues of OPEX	10.3	10.0	17.0	3.5%	0.3
Other revenues	0.8	-0.5	-0.5	-251.0%	1.3
Interest on tariff deviation	0.0	0.0	0.0	-100.0%	0.0
Adjustments previous years	0.5	-0.6	-0.9	-194.9%	1.1
Other services provided	0.1	0.0	0.1	1012.8%	0.1
Other	0.1	0.0	0.3	104.8%	0.1
Construction revenues (IFRIC 12)	11.3	9.1	26.9	24.4%	2.2
2) OPEX	8.5	8.2	13.8	3.2%	0.3
Personnel costs	2.0	2.1	4.1	-7.3%	-0.2
External supplies and services	2.1	2.1	4.7	-1.2%	0.0
Other operational costs	4.4	3.9	4.9	11.3%	0.4
3) Construction costs (IFRIC 12)	9.9	7.7	23.8	28.0%	2.2
4) Depreciation and amortization	8.7	8.1	16.4	6.5%	0.5
5) Other	0.0	0.0	0.0		0.0
6) EBIT	16.4	13.6	27.8	20.5%	2.8
7) Depreciation and amortization	8.7	8.1	16.4	6.5%	0.5
8) EBITDA	25.1	21.7	44.2	15.3%	3.3

APPENDIX EBITDA breakdown (Transemel)

							1H22 / 1H21
€M	1H22	1H21	2021	Δ %	Δ Abs.
1) REVENUES	6.5	4.7	12.1	37.7%	1.8
2) OPEX	1.5	1.6	3.9	-1.7%	0.0
3) Depreciation and amortization	1.0	0.8	1.5	30.2%	0.2
4) EBIT	4.0	2.4	6.7	65.9%	1.6
5) Depreciation and amortization	1.0	0.8	1.5	30.2%	0.2
6) EBITDA	5.0	3.2	8.2	57.0%	1.8

APPENDIX EBITDA breakdown (Other¹ )

				1H22 / 1H21
€M	1H22	1H21	2021	Δ %	Δ Abs.
1) TOTAL REVENUES	10.4	8.1	17.4	29.0%	2.3
Other revenues	10.4	8.1	17.4	29.0%	2.3
Allowed incentives	0.4	0.7	1.0	-47.8%	-0.4
Interest on tariff deviation	0.0	0.2	0.4		-0.2
Telecommunication sales and services rendered	3.9	3.5	7.7	13.2%	0.5
Consultancy services and other services provided	0.9	0.3	0.8		0.6
Other	5.2	3.3	7.5	57.9%	1.9
2) OPEX	17.3	17.0	35.1	1.3%	0.2
Personnel costs	14.2	13.3	26.9	6.3%	0.8
External supplies and services	2.8	3.5	7.4	-19.1%	-0.7
Other operational costs	0.2	0.2	0.8	26.7%	0.1
3) Depreciation and amortization	3.5	3.7	7.4	-5.2%	-0.2
4) Other	0.2	0.2	0.4	0.0%	0.0
5) EBIT	-10.6	-12.9	-25.5	-17.9%	2.3	Includes the negative impacts of the
6) Depreciation and amortization	3.5	3.7	7.4	-5.2%	-0.2	PPAs2 of Portgás (€2.6M) and
7) EBITDA	-7.0	-9.2	-18.0	-23.1%	2.1	Transemel (€0.9M) in 1H22

APPENDIX Capex and RAB

				1H22 / 1H21
€M	1H22	1H21	2021	Δ %	Δ Abs.
CAPEX	78.8	79.3	247.1	-0.7%	-0.6
Electricity	60.6	58.3	181.3	4.0%	2.3
Natural gasT	3.9	9.1	29.5	-56.7%	-5.2
Natural gasD	11.3	9.1	26.9	24.4%	2.2
Transemel	2.8	2.7	9.2	4.1%	0.1
Other	0.0	0.1	0.2	-50.7%	0.0
Transfers to RAB	22.0	16.9	309.1	30.6%	5.2
Electricity	9.8	5.1	253.7	91.2%	4.7
Natural gasT	1.4	2.4	29.9	-41.3%	-1.0
Natural gasD	10.8	9.4	25.5	15.8%	1.5
Average RAB	3,602.6	3,515.2	3,602.8	2.5%	87.4
Electricity	2,041.2	1,925.3	2,013.0	6.0%	115.9
With premium	1,028.9	1,020.2	1,039.8	0.9%	8.7
Without premium	1,012.2	905.0	973.2	11.8%	107.2
Land	196.4	208.7	205.6	-5.9%	-12.3
Natural gasT	884.0	911.2	910.8	-3.0%	-27.2
Natural gasD	481.1	470.1	473.4	2.3%	11.0
RAB e.o.p.	3,557.0	3,469.6	3,644.7	2.5%	87.3
Electricity	2,011.6	1,895.5	2,071.0	6.1%	116.1
With premium	1,014.7	1,007.0	1,046.0	0.8%	7.7
Without premium	996.8	888.5	1,025.0	12.2%	108.3
Land	193.3	205.6	199.4	-6.0%	-12.3
Natural gasT	870.5	898.4	897.5	-3.1%	-27.9
Natural gasD	481.6	470.1	476.8	2.4%	11.5

				1H22 / 1H21
€M	1H22	1H21	2021	Δ %	Δ Abs.
RAB's remuneration	87.5	79.2	162.7	10.5%	8.3
Electricity	52.4	47.2	98.5	10.9%	5.1
With premium	26.5	26.8	54.6	-1.3%	-0.3
Without premium	25.9	20.4	43.9	26.9%	5.5
Land	0.3	0.3	0.7	-1.3%	0.0
Natural gasT	22.2	20.6	41.2	8.0%	1.6
Natural gasD	12.6	11.0	22.3	13.9%	1.5
RoR's RAB	4.9%	4.5%	4.5%		0.4p.p.
Electricity	5.1%	4.9%	4.9%		0.2p.p.
With premium	5.4%	5.3%	5.3%		0.1p.p.
Without premium	4.7%	4.5%	4.5%		0.1p.p.
Land	0.3%	0.3%	0.3%		0.0p.p
Natural gasT	5.0%	4.5%	4.5%		0.5p.p.
Natural gasD	5.2%	4.7%	4.7%		0.5p.p.

APPENDIX Tariff deviations

€M	1H22	1H21	2021
Electricity	56.0	51.9	86.9
Trading	-384.8	53.2	-218.2
Natural gasT	-105.8	-125.8	-134.5
Natural gasD	2.0	-5.4	-0.8
Total1	-432.6	-26.0	-266.6

! 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	Jun 2022
Bonds	550.0	1,122.1	1,672.1
Bank borrowings	68.8	391.9	460.7
Commercial paper	210.0	250.0	460.0
Bank overdrafts	0.0	0.0	0.0
Finance lease	1.6	2.7	4.2
TOTAL	830.4	1,766.7	2,597.1
Accrued interest	8.9	0.0	8.9
Prepaid interest	-8.2	-1.9	-10.2
TOTAL	831.0	1,764.8	2,595.8

• REN maintained its financial strength and continued to present high liquidity and a low average cost of debt;
• REN's total liquidity reached €1,500.6M, including credit facilities, loans, non-used commercial paper programmes, cash and bank deposits;
• Bank borrowings were mainly represented by EIB loans, which at the 30th of June 2022 amounted to €415.7M (€430.9M at the 31st of December of 2021);
• 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 ten active commercial paper programs in the amount of €2,075M, of which €1,615M were available for use. Of the total amount 650,000 thousand Euros have a guaranteed placement, of which 400,000 thousand Euros are available for utilization at 30th June 2022.
• REN's financial liabilities had the following main types of covenants: Cross Default, Pari Passu, Negative Pledge, leverage ratios 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 1.66% on the 30th of June 2022 and 1.57% on the 31st of December 2021.

APPENDIX Debt and debt metrics

	1H22	1H21	2021
Net Debt (€M)	2,099.4	2,539.9	2,362.0
Average cost	1.7%	1.6%	1.6%
Average maturity (years)	3.0	3.7	3.3
Net Debt / EBITDA	4.4x	5.6x	5.1x
DEBT BREAKDOWN
Funding sources
Bond issues	65.1%	60.3%	62.6%
EIB	15.7%	16.3%	15.7%
Commercial paper	17.4%	17.5%	16.4%
Other	1.9%	5.9%	5.4%
TYPE
Float	28%	40%	40%
Fixed	72%	60%	60%

RATING	Long term	Short term	Outlook	Date
Moody's	Baa2	-	Stable	27/07/2022
Standard & Poor's	BBB	A-2	Stable	29/10/2021
Fitch	BBB	F3	Stable	02/06/2021

APPENDIX

Market information

CMVM: MAIN PRESS RELEASES (from January 2022)

• Feb-04: 2022 Financial Calendar
• Feb-23: Summary of annual information disclosed in 2021
• Mar-24: 2021 annual consolidated results
• Mar-29: Notice to convene the annual general shareholders meeting and deliberation proposals
• Mar-29 : Accounts reporting documents referring to the financial year ended on 31st December 2021 - item 1 of the agenda for the general shareholders meeting
• Mar-29 : Corporate Governance report included in the 2021 Report and Accounts
• Apr-28: Resolutions approved at the Annual General Shareholders Meeting
• May-09: Payment of dividends of the 2021 financial year
• May-20: 2022 first quarter results
• May-20: Report & Accounts 1Q22

Consolidated Financial Statements

CONSOLIDATED FINANCIAL STATEMENTS

Financial position

Thousand Euros		Jun 2022 Dec 2021	Thousand Euros	Jun 2022	Dec 2021
ASSETS			EQUITY
Non-current assets			Shareholders' equity
Property, plant and equipment	120,887	119,551	Share capital	667,191	667,191
Intangible assets	4,076,645	4,123,069	Own shares	-10,728	-10,728
Goodwill	4,571	4,757	Share premium	116,809	116,809
Investments in associates and joint ventures	184,869	169,283	Reserves	369,397	311,988
Investments in equity instruments at fair value through other comprehensive income	154,327	162,724	Retained earnings	232,761	232,978
Derivative financial instruments	44,785	19,347	Other changes in equity	-5,561	-5,561
Other financial assets	156	137	Net profit for the period	45,854	97,153
Trade and other receivables	50,506	37,026	Total equity	1,415,724	1,409,830
Deferred tax assets	83,425	96,673
	4,720,172	4,732,567	LIABILITIES
Current assets			Non-current liabilities
Inventories	8,718	8,545	Borrowings	1,764,758	2,390,852
Trade and other receivables	355,143	448,171	Liability for retirement benefits and others	78,923	94,109
Current income tax recoverable	0	0	Derivative financial instruments	46,325	23,112
Derivative financial instruments	466	474	Provisions	9,399	8,872
Other financial assets	0	0	Trade and other payables	752,065	507,606
Cash and cash equivalents	545,580	398,759	Deferred tax liabilities	107,458	107,569
	909,908	855,949		2,758,927	3,132,120
			Current liabilities
Total assets	5,630,080	5,588,516	Borrowings	831,021	375,221
			Provisions	0	0
			Trade and other payables	598,095	644,701
			Income tax payable	26,313	26,644
				1,455,429	1,046,566
			Total liabilities	4,214,356	4,178,686

Total equity and liabilities 5,630,080 5,588,516

CONSOLIDATED FINANCIAL STATEMENTS Profit and loss

Thousand Euros	Jun 2022	Jun 2021
Sales	60	45
Services rendered	283,091	273,672
Revenue from construction of concession assets	75,915	76,536
Gains / (losses) from associates and joint ventures	5,109	3,095
Other operating income	14,692	15,426
Operating income	378,866	368,774
Cost of goods sold	$-402$	$-473$
Costs with construction of concession assets	$-65.723$	$-66,522$
External supplies and services	$-34,659$	$-35,097$
Personnel costs	$-29,279$	$-28,606$
Depreciation and amortizations	$-124,227$	$-120,229$
Provisions	$-526$	0
Impairments	$-189$	$-189$
Other expenses	$-9,246$	$-9,880$
Operating costs	$-264, 251$	$-260,996$
Operating results	114,615	107,778
Financial costs	$-27,977$	$-26,690$
Financial income	4,273	1,556
Investment income - dividends	8,165	6,947
Financial results	$-15,540$	$-18,186$
Profit before income tax and ESEC	99,076	89,592
Income tax expense	$-25,203$	$-22,982$
Energy sector extraordinary contribution (ESEC)	$-28,018$	$-27,070$
Consolidated profit for the period	45,854	39,539
Attributable to:
Equity holders of the Company	45,854	39,539
Non-controlled interest	$\overline{0}$	$\bf{0}$
Consolidated profit for the period	45,854	39,539
Earnings per share (expressed in euro per share)	0.07	0.06

CONSOLIDATED FINANCIAL STATEMENTS

Cash flow

Thousand Euros	Jun 2022	Jun 2021
Cash flow from operating activities:
Cash receipts from customers	1,763,707	1,148,765
Cash paid to suppliers	$-1,235,390$	$-724,190$
Cash paid to employees	$-38,152$	$-38,824$
Income tax received/paid	$-27,092$	2,527
Other receipts / (payments) relating to operating activities	$-47,436$	7,709
Net cash flows from operating activities (1)	415,637	395,987
Cash flow from investing activities:
Receipts related to:
Investments in associates	$\overline{0}$	$\overline{0}$
Property, plant and equipment	$\overline{0}$	0
Other financial assets	$\overline{0}$	$\bf{0}$
Investment grants	71,804	19,100
Interests and other similar income	$\overline{0}$	0
Dividends	7,931	4,668
Payments related to: Other financial assets	$\overline{0}$	$\bf{0}$
	$\overline{0}$	$\overline{0}$
Financial investments
Equity instruments through other comprehensive income	$\Omega$	0
Property, plant and equipment	$-5,354$	$-167$
Intangible assets	$-102,011$	$-80,757$
Net cash flow used in investing activities (2)	$-27,630$	$-57,155$
Cash flow from financing activities:
Receipts related to:
Borrowings	695,000	1,335,000
Capital and supplementary obligations	$\Omega$	0
Interests and other similar income	$\overline{0}$	Ō
Payments related to:
Borrowings	$-799,173$	$-1,278,051$
Interests and other similar expense	$-33,861$	$-33,684$
Leasings	$-1,075$	$-989$
Interests of Leasings	$-12$	$-13$
Dividends	$-102,150$	$-113,426$
Net cash from / (used in) financing activities (3)	$-241,269$	$-91,163$
Net (decrease) / increase in cash and cash equivalents (1)+(2)+(3)	146,738	247,669
Effect of exchange rates	84	13
Cash and cash equivalents at the beginning of the year	398.759	61,169
Changes in the perimeter	$\Omega$	0
Cash and cash equivalents at the end of the period	545,580	308,852
Detail of cash and cash equivalents
Cash	23	23
	$\Omega$	$-52$
Bank overdrafts Bank deposits	545,557	308,881

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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