REN-Redes Energeticas Nacionais

Earnings Release • May 20, 2022

Results Report REN 1Q22

20th May 2022

AGENDA

1. Overview of the period

2. Business performance

3. Closing remarks

1. Overview of the period

KEY MESSAGES 1Q22

EBITDA grew 3.5% YoY to €118.4M, reflecting the positive performance of both domestic and international operations.

Domestic EBITDA improvement driven by: (1) the positive impact from TOTEX revenues¹ (+€5.1M); (2) the increase in Opex Revenues (+€1.2M); (3) higher remuneration from RAB (+€0.7M). However, these were offset by lower regulated incentives in the electricity business (-€4.4M) and higher core opex (+€1.7M), due to higher electricity costs.

Positive international business contribution, with EBITDA growing +€2.1M, with Transemel representing +€1.2M.

Net Profit improved to €6.0M (an increase of 32.6% versus 1Q21), mostly due to EBIT improvement (+€2.0M) and better Financial Results (+€1.3M), partially offset by higher taxes (+€0.9M) and higher levy (+€0.9M), following the increase in regulated asset base. 1Q still impacted by full amount of yearly energy sector levy.

Capex decreased €4.5M to €27.3M (vs €31.8M in 1Q21). Transfers to RAB were down €3.7M vs 1Q21, mostly driven by the electricity and gas transmission businesses (which decreased €4.1M), partially offset by the increase in Natural Gas Distribution (+€0.4M).

Renewable energy sources (RES) reached 48.8% of total supply (approx.-29.9pp than in 1Q21), due to the reduced availability of renewable energy, partially attributed to the severe drought. Electricity consumption increased by 1.3% whilst natural gas consumption grew by 6.6%.

High quality of service delivered during the first three months of the year. The level of energy transmission losses decreased relatively to the previous year and the gas combined availability rate remained at full capacity.

1 Includes RAB remuneration and amortizations, as well as opex recovery in electricity transmission activity. This comes as a result of the new remuneration model based on Totex, introduced in 2022, for the Electricity Transmission activity, under which REN's Opex and Capex is remunerated through a fixed annual amount defined by the regulator for the entire regulatory period, from 2022 to 2025.

SECTOR OVERVIEW

Commitment to hydrogen infrastructure and energy transition

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. REN created a Task Force (TF H2REN) to identify and carry out the required activities and investments to ensure that its gas transmission, storage and Hydrogen distribution facilities will be compliant with natural gas & hydrogen blends up to 10% until 2023.

Exceptional setting of electricity tariffs from 1 July 2022

• According to ERSE this exceptional review of tariffs in 2022 is essential to ensure greater tariff stability in the face of the current context of high volatility and high price in the wholesale electricity market. This review intents to mitigate the energy cost impact in consumer bills, through the reduction of the Network Access tariffs.
• This reduction is made possible by the early return to consumers of the higher than expected returns from electricity production under the special regime (PRE) and with the Power Purchase agreement still under operation, as well as additional revenues from the greenhouse gas emission allowance auctions'.
• ERSE submitted to the Tariff Council (TC) the confidential documentation supporting its proposal for tariffs. The TC must issue an opinion on the proposal within 3 weeks, and it is up to ERS, to publish its final decision until 15th June. On 1st July, tariffs for the next six months will come into effect.

Proposal for natural gas tariffs 2022/2023

• ERSE submitted to the Tariff Council (TC) the confidential documentation supporting its proposal for tariffs and gas prices. The TC must issue an opinion on the proposal within 30 days, and it is up to ERSE to publish its final decision until 1 st June. On October 1 st , tariffs for the next year (which runs from 1 st October 2022 to 30th September 2023) come into effect.
• As this is a regulatory intermediary year for gas, there are no relevant regulatory issues for REN.

Energy Transition and renewable gas REN applied to the Last Phase of the Portuguese Recovery and Resilience Plan (PRR) with the "H² Green Valley" Agenda, for the development of a Green H² ecosystem in Sines with relevant partners, Dianagás, Bosch, Hylab, INL and IST, just to name a few. This project focuses on pure H² and could be complemented by an integrated storage to improve flexibility for H2 producers and consumers. The Final proposal was submitted on the 13th April and a decision is expected in 2Q.

NEW ELECTRICITY REGULATION

For the regulatory period 2022-2025, ERSE established a TOTEX model – a revenue cap applied to total controllable costs

		Overview	Detail
1 5 2 2- 2 0 2 es u n e v e R y cit ctri e El	Revenue Cap for TOTEX (CAPEX + OPEX)	 REN recognizes in the income statement the annual rent fixed by the regulator for the entire regulatory period, which aims to remunerate both the OPEX and CAPEX  The rent value is updated annually according to its cost drivers namely the RoR. An efficiency factor is set for new investments and Opex  Accounting recognition methodology was discussed with REN's external auditor	The annual remuneration starts at 264.3M€ and is updated according to: RoR indexed to 10Y PGB yields (including 2022)  Annual change of Inflation2  (from 2023 onwards) Annual efficiency factor of 1.5% (from 2023 onwards)   Volume drivers (Km of network and power producer connections; including 2022)
	+ Efficiency Sharing Mechanism	 The mechanism application is only closed at the end of the regulatory period.  In the next regulatory cycle, REN may share gains or losses with consumers  During the period, REN may recognize contingent assets or liabilities in order to reflect potential gains or losses as a result of the mechanism  No efficiencies have been recorded into REN's accounts under this mechanism. The best estimate should be registered near the end of the regulatory cycle	Efficiencies are shared progressively (between 0%, 50% and 100%) and are measured against the reference return set by ERSE 100% 100% 50% 50% 0% 0% +1.50% -1.50% -0.625% +0.625% Efficiencies vs reference by ERSE return set
	+ Incentives	 New Incentive to the Improvement of the TSO Technical Performance (IMDT) based on performance metrics  Incentive ranges between -20M€ and 20M€	Equivalent Interruption Time   Network and equipment availability From 2022 onwards capacity targets  Interconnection

1. Excludes System Management activity 2. Annual change of Internal Basic Wholesale Price Index (annual change ending at 2nd quarter of year n-1);

2. Business performance

OPERATIONAL HIGHLIGHTS

Quality of service remained high, despite the lower availability of renewables and the increasing importance of gas

Consumption Electricity		Energy transmission losses	Line length
	0.2 TWh 13.2TWh (1.3%)	1.8% 0.5pp	334km 9,366km (3.7%)
	1Q21: 13.1TWh	1Q21: 2.3%	1Q21: 9,032km
	Renewables in consumption supply	Average interruption time	Combined availability rate
	48.8% 29.9pp	0.06min 0.06min	99.1% 0.3pp
	1Q21: 78.7%	1Q21: 0.00min	1Q21: 99.4%
Gas Transmission	Consumption	Combined availability rate	Line length
	1.0TWh 16.0TWh (6.6%)	100.0% 0.0pp	0km 1,375km (0.0%)
	1Q21: 15.0TWh	1Q21: 100.0%	1Q21: 1,375km
Gas Distribution	Gas distributed	Emergency situations with response time up to 60min	Line length
	0.4TWh 1.9TWh (17.1%)	98.6% 0.3pp	220km 6,148km (3.7%)
	1Q21: 2.2TWh	1Q21: 98.3%	1Q21: 5,928km

FINANCIAL HIGHLIGHTS

Increase in EBITDA driven by assets and opex in domestic business and by international business performance

EBITDA evolution breakdown €M

1 Includes electricity regulatory incentives (in 1Q21 €6.3M from the Incentive for the Rationalization of Economic Investments, and in 1Q22 €1.9M 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 %

1Q22 RESULTS 10

Upward trend in 10Y Treasury bond yields matching the yield in March 2020

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

Transfers to RAB and CAPEX decreased YoY, as last year REN recovered delayed projects

Transfers to RAB €M

Key highlights

Electricity

Main investment projects:

• 150kV connection between the Fernão Ferro Trafaria substations
• Remodeling of the 400kV Palmela Sines 1 and Palmela Sines 2 lines, as well as the remodeling of 400kV Alcochete Fanhões line

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)
• Expansion to new industrial zones under preparation

Increase in average electricity RAB triggered by the new regulatory model which defines a fixed RAB for the entire regulatory period

Average RAB evolution €M

RAB remuneration increased across all businesses, mostly driven by the increase in the rate of return

Return on RAB evolution breakdown €M

Increase in Return on RAB justified by a higher RoR of 4.79% (vs 4.50%), despite smaller asset base (by €27.4M to a total of €890.4M)

Higher return on RAB attributed to a higher rate of return (from 4.70% to 4.99%) and higher asset base (+€3.3M to a total of €476.1M)

0.34

5.56

€40.2M)

higher asset base (by €2.4M to

5.94

€+0.38M (+6.9%)

0.04

OPEX climbed 6.1% YoY, with core OPEX rising 6.5%

Core OPEX¹ evolution €M

Key highlights

Core external costs

• Electricity costs in LNG terminal (+2.7M€) are still a major part

Non-core costs

• Pass-through costs (costs accepted in the tariff) increased by €0.4M, of which €1.0M correspond to the acquisition of operation gas related to the beginning of the Mibgás organized gas market in Portugal, +€1.6M in subsoil occupation levies, and -€1.8M in costs with crossborder and system services costs

EBITDA breakdown €M

DOMESTIC BUSINESS: ELECTRICITY

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

1 Includes electricity regulatory incentives (in 1Q21 €6.3M from the Incentive for the Rationalization of Economic Investments, and in 1Q22 €1.9M from the Incentive to the Improvement of the TSO Technical Performance) and excludes Opex remuneration related to pass-through costs | 2 Includes €1,114.6M of Electricity without premium (€913.3M for 1Q21), €981.0M of Electricity with premium (€1,027.1M for 1Q21) and €197.9M of Lands (€210.2M in 1Q21) | 3. RoR for Electricity with premium was 5.3% in 1Q22 (5.3% in 1Q21), and for other Lands 0.3% in 1Q22 (0.3% in 1Q21)

DOMESTIC BUSINESS: GAS TRANSMISSION

Gas Transmission EBITDA reduction mainly explained by lower opex contribution

EBITDA breakdown €M

DOMESTIC BUSINESS: GAS DISTRIBUTION

Gas Distribution EBITDA increase mainly explained by higher RAB remuneration and opex contribution

Capex		Transfers to RAB		Average RAB		RoR		Core OPEX
€3.9M	€0.3M (7.4%)	€3.6M	€0.4M (13.4%)	€476.1M	€3.3M (0.7%)	5.0%	0.29pp	€2.1M	€0.3M (11.9%)
1Q21: €3.6M		1Q21: €3.2M		1Q21: €472.8M		1Q21: 4.7%		1Q21: €2.4M

INTERNATIONAL BUSINESS

Strong consolidation of the Chilean businesses

(49.6%)

(97.0%)

Positive performance in Financial Results, reflecting favorable FX rates despite slight increase in average cost of debt

Increase vs 1Q21 reflecting the increase in EBT (+€3.3M).

Net Profit increased as a result of higher EBITDA and financial results, partially offset by higher depreciations, taxes and CESE

Net profit evolution breakdown €M Key highlights

• The increase in EBITDA (+€4.0M), reflecting the positive contributions from both international (€2.1M) and domestic businesses
• The positive effect of €1.3M from Financial Results, as a consequence of better financial conditions, lower net debt and exchange rate differences
• Higher CESE impact (Δ€0.9M), reflecting the evolution of the asset base

Net Debt enhancement attributed to operating cash flow and tariff deviations surpassing outflows of investment and financing activities

1 Calculated as Net Debt plus Cash, bank deposits and derivative financial instruments (€530M), excluding effects of hedging on yen denominated debt, accrued interest and bank overdrafts | 2 Includes loans (1.7%) and leasing (0.2%)

SHARE PRICE & SHAREHOLDER RETURN

REN's share ended Q1 with a TSR of 12% strikingly above sector

Analyst recommendations¹

3. Closing remarks

CLOSING REMARKS

Strong commitment to provide a quality service, achieve financial stability and offer sustainable returns

EBITDA of €118.4M an increase of €4.0M YoY (+3.5%), mainly due to the positive impact from TOTEX revenues, higher remuneration from RAB and international business performance.

Net Profit reached €6.0M (+32.6%) partly attributed to the positive impact from EBIT and Financial results, despite these being partially offset by higher taxes and higher levy.

Remarkable Net Debt progress as a result of higher operating cash flow and tariff deviations coupled with stable average cost of debt.

Capex and Transfers to RAB slowed down YoY, as last year REN recovered delayed projects.

The payment of a dividend of 15.4 cents per share was approved with majority at the General Shareholder's meeting on the 28th of April and started to be payed on the 19th of May.

Appendix - Financials

APPENDIX Results breakdown

				1Q22 / 1Q21
€M	1Q22	1Q21	2021	Δ %	Δ Abs.
1) TOTAL REVENUES	178.5	176.3	838.4	1.2%	2.2
Revenues from assets	47.1	50.3	203.8	-6.4%	-3.2
Return on RAB	17.1	16.3	65.3	4.6%	0.7
Electricity	0.5	0.4	1.8	6.3%	0.0
Natural gas	10.7	10.3	41.2	3.3%	0.3
Portgás	5.9	5.6	22.3	6.9%	0.4
Lease revenues from hydro protection zone	0.2	0.2	0.7	-1.3%	0.0
Incentive1 IMDT	1.9	6.3	26.9	-70.0%	-4.4
Recovery of amortizations (net from subsidies)	23.5	22.9	92.2	2.5%	0.6
Subsidies amortization	4.5	4.7	18.7	-3.3%	-0.2
Revenues from Transemel	3.0	2.3	12.0	32.8%	0.7
Revenues of TOTEX2	66.6	61.5	250.5	8.3%	5.1
Revenues of OPEX	28.8	27.1	111.3	6.0%	1.6
Other revenues	5.8	4.6	23.0	25.8%	1.2
Construction revenues (IFRIC 12)	27.2	30.5	237.9	-10.9%	-3.3
2) OPEX	37.8	36.0	161.1	4.9%	1.8
Personnel costs	14.0	13.7	57.2	2.4%	0.3
External supplies and services	17.5	17.5	84.2	-0.4%	-0.1
Other operational costs	6.3	4.8	19.8	31.5%	1.5
3) Construction costs (IFRIC 12)	22.3	25.8	215.3	-13.8%	-3.6
4) Depreciation and amortization	62.1	60.1	241.9	3.3%	2.0
5) Other	0.1	0.1	1.2	0.0%	0.0
6) EBIT	56.3	54.3	218.9	3.7%	2.0
7) Depreciation and amortization	62.1	60.1	241.9	3.3%	2.0
8) EBITDA	118.4	114.4	460.8	3.5%	4.0
9) Depreciation and amortization	62.1	60.1	241.9	3.3%	2.0
10) Financial result	-9.4	-10.8	-42.6	-12.2%	1.3
11) Income tax expense	12.9	11.9	52.1	7.7%	0.9
12) Extraordinary contribution on energy sector	28.0	27.1	27.0	3.4%	0.9
13) NET PROFIT	6.0	4.5	97.2	32.6%	1.5
14) Non recurrent items	28.0	27.1	24.7	3.4%	0.9
15) RECURRENT NET PROFIT	34.0	31.6	121.8	7.6%	2.4

1 Incentive for improvement of the TSO's technical performance | 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 1Q21 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.

NON RECURRENT ITEMS: 1Q22: i) Extraordinary energy sector levy, as established in the 2022 State budget law (€28.0M);

1Q21: i) Extraordinary energy sector levy, as established in the 2021 State budget law (€27.1M)

APPENDIX

Other operational revenues and costs breakdown

				1Q22 / 1Q21
€M	1Q22	1Q21	2021	Δ %	Δ Abs.
Other revenues	5.8	4.6	23.0	25.8%	1.2
Allowed incentives	0.2	0.4	1.0	-50.1%	-0.2
Interest on tariff deviation	-0.1	0.1	0.3	-168.1%	-0.1
Telecommunication sales and services rendered	1.8	1.8	7.7	2.9%	0.1
Consultancy services and other services provided	1.0	0.3	2.0	196.9%	0.7	Includes revenues related to
Other revenues	2.9	2.0	12.0	41.7%	0.9	Electrogas' Net Profit proportion
Other costs	6.3	4.8	19.8	31.5%	1.5	(€2.3M in 1Q22 and €1.4M in 1Q21)
Costs with ERSE	1.7	2.0	10.9	-15.2%	-0.3
Other	4.6	2.8	8.9	64.5%	1.8

APPENDIX EBITDA breakdown (Electricity¹ )

				1Q22 / 1Q21
€M	1Q22	1Q21	2021	Δ %	Δ Abs.
1) REVENUES	109.1	112.5	546.0	-3.0%	-3.4
Revenues from assets	10.7	15.0	62.0	-28.4%	-4.2
Return on RAB	0.5	0.4	1.8	6.3%	0.0
Lease revenues from hydro protection zone	0.2	0.2	0.7	-1.3%	0.0
Incentive2 IMDT	1.9	6.3	26.9	-70.0%	-4.4
Recovery of amortizations (net from subsidies)	5.1	4.9	19.8	3.3%	0.2
Subsidies amortization	3.1	3.2	12.8	-1.9%	-0.1
Revenues of TOTEX3	66.6	61.5	250.5	8.3%	5.1
Revenues of OPEX	9.0	10.9	46.0	-17.3%	-1.9
Other revenues	0.8	0.9	6.3	-12.2%	-0.1
Interest on tariff deviation	0.1	0.1	0.3	-6.7%	0.0
Other	0.7	0.8	6.0	-12.7%	-0.1
Construction revenues (IFRIC 12)	22.0	24.3	181.3	-9.4%	-2.3
2) OPEX	11.6	15.3	65.9	-24.5%	-3.8
Personnel costs	4.2	4.1	16.9	1.3%	0.1
External supplies and services	6.6	10.1	41.0	-34.5%	-3.5
Other operational costs	0.8	1.1	7.9	-30.7%	-0.3
3) Construction costs (IFRIC 12)	18.6	20.9	164.7	-10.9%	-2.3
4) Depreciation and amortization	40.1	38.5	155.0	4.2%	1.6
5) Other	0.0	0.0	0.8		0.0
6) EBIT	38.9	37.9	159.6	2.7%	1.0
7) Depreciation and amortization	40.1	38.5	155.0	4.2%	1.6
8) EBITDA	79.0	76.4	314.6	3.5%	2.6

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 1Q21 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)

			1Q22 / 1Q21
€M	1Q22	1Q21	2021	Δ %	Δ Abs.
1) REVENUES	40.3	39.3	180.9	2.6%	1.0
Revenues from assets	26.3	25.8	103.4	1.8%	0.5
Return on RAB	10.7	10.3	41.2	3.3%	0.3
Recovery of amortizations (net from subsidies)	14.2	14.0	56.4	1.7%	0.2
Subsidies amortization	1.4	1.5	5.8	-6.9%	-0.1
Revenues of OPEX	13.2	11.2	48.3	18.0%	2.0
Other revenues	-0.3	-0.2	-0.3	45.4%	-0.1
Interest on tariff deviation	-0.1	-0.1	-0.4	28.9%	0.0	A negative revenue is consistent with
Consultancy services and other services provided	0.0	0.0	0.1		0.0	a negative tariff deviation
Other	-0.2	-0.1	0.0	57.6%	-0.1
Construction revenues (IFRIC 12)	1.2	2.5	29.5	-54.4%	-1.4
2) OPEX	12.1	8.2	42.4	47.8%	3.9
Personnel costs	2.0	2.1	8.7	-6.2%	-0.1
External supplies and services	8.4	4.6	28.2	81.7%	3.8
Other operational costs	1.7	1.5	5.6	17.6%	0.3
3) Construction costs (IFRIC 12)	0.5	2.0	26.8	-73.7%	-1.5
4) Depreciation and amortization	15.4	15.3	61.5	0.6%	0.1
5) Other	0.0	0.0	-0.1		0.0
6) EBIT	12.4	13.9	50.3	-10.9%	-1.5
7) Depreciation and amortization	15.4	15.3	61.5	0.6%	0.1
8) EBITDA	27.7	29.1	111.8	-4.8%	-1.4

APPENDIX EBITDA breakdown (Portgás)

				1Q22 / 1Q21
€M	1Q22	1Q21	2021	Δ %	Δ Abs.
1) REVENUES	20.6	18.2	81.8	13.0%	2.4
Revenues from assets	10.1	9.5	38.4	6.1%	0.6
Return on RAB	5.9	5.6	22.3	6.9%	0.4
Recovery of amortizations (net from subsidies)	4.2	4.0	16.0	4.8%	0.2
Subsidies amortization	0.0	0.0	0.1	22.0%	0.0
Revenues of OPEX	6.5	5.0	17.0	29.8%	1.5
Other revenues	0.0	0.0	-0.5	106.4%	0.0
Interest on tariff deviation	0.0	0.0	0.0	-100.0%	0.0
Adjustments previous years	0.0	0.0	-0.9	277.5%	0.0
Other services provided	0.1	0.0	0.1	773.6%	0.1
Other	0.0	0.0	0.3	-3.5%	0.0
Construction revenues (IFRIC 12)	3.9	3.6	26.9	7.4%	0.3
2) OPEX	5.4	4.1	13.8	32.2%	1.3
Personnel costs	0.9	1.0	4.1	-11.1%	-0.1
External supplies and services	1.0	1.1	4.7	-10.5%	-0.1
Other operational costs	3.5	1.9	4.9	79.1%	1.5
3) Construction costs (IFRIC 12)	3.2	3.0	23.8	6.2%	0.2
4) Depreciation and amortization	4.3	4.1	16.4	6.7%	0.3
5) Other	0.0	0.0	0.0		0.0
6) EBIT	7.7	7.1	27.8	8.5%	0.6
7) Depreciation and amortization	4.3	4.1	16.4	6.7%	0.3
8) EBITDA	12.1	11.2	44.2	7.9%	0.9

APPENDIX EBITDA breakdown (Transemel)

				1Q22 / 1Q21
€M	1Q22	1Q21	2021	Δ %	Δ Abs.
1) REVENUES	3.1	2.3	12.1	36.1%	0.8
2) OPEX	0.7	1.1	3.9	-34.1%	-0.4
3) Depreciation and amortization	0.5	0.4	1.5	30.3%	0.1
4) EBIT	1.9	0.8	6.7	128.1%	1.1
5) Depreciation and amortization	0.5	0.4	1.5	30.3%	0.1
6) EBITDA	2.4	1.2	8.2	96.8%	1.2

APPENDIX EBITDA breakdown (Other¹ )

			2021	1Q22 / 1Q21
€M	1Q22	1Q21		Δ %	Δ Abs.
1) TOTAL REVENUES	5.3	4.0	17.4	35.0%	1.4
Other revenues	5.3	4.0	17.4	35.0%	1.4
Allowed incentives	0.2	0.4	1.0	-50.1%	-0.2
Interest on tariff deviation	0.0	0.1	0.4		-0.1
Telecommunication sales and services rendered	1.8	1.8	7.7	2.9%	0.1
Consultancy services and other services provided	0.7	0.1	0.8		0.6
Other	2.6	1.5	7.5	69.9%	1.1
2) OPEX	8.1	7.4	35.1	9.2%	0.7
Personnel costs	6.8	6.3	26.9	6.8%	0.4
External supplies and services	1.2	0.9	7.4	24.0%	0.2
Other operational costs	0.1	0.1	0.8	20.3%	0.0
3) Depreciation and amortization	1.8	1.9	7.4	-5.2%	-0.1
4) Other	0.1	0.1	0.4	0.0%	0.0
5) EBIT	-4.6	-5.4	-25.5	-14.8%	0.8	Includes the negative impacts of the
6) Depreciation and amortization	1.8	1.9	7.4	-5.2%	-0.1	PPAs2 of Portgás (€1.3M) and
7) EBITDA	-2.8	-3.5	-18.0	-19.9%	0.7	Transemel (€0.4M) in 1Q22

APPENDIX Capex and RAB

				1Q22 / 1Q21
€M	1Q22	1Q21	2021	Δ %	Δ Abs.
CAPEX	27.3	31.8	247.1	-14.1%	-4.5
Electricity	22.0	24.3	181.3	-9.4%	-2.3
Natural gas T	1.2	2.5	29.5	-54.4%	-1.4
Natural gas D	3.9	3.6	26.9	7.4%	0.3
Transemel	0.2	1.2	9.2	-84.7%	-1.0
Other	0.0	0.1	0.2	-50.7%	0.0
Transfers to RAB	4.0	7.7	309.1	-47.8%	-3.7
Electricity	0.4	3.0	253.7	-85.6%	-2.5
Natural gas T	0.0	1.5	29.9	-102.5%	-1.6
Natural gas D	3.6	3.2	25.5	13.4%	0.4
Average RAB	3,660.1	3,541.2	3,602.8	3.4%	118.9
Electricity	2,095.7	1,940.4	2,013.0	8.0%	155.3
With premium	981.0	1,027.1	1,039.8	-4.5%	-46.0
Without premium	1,114.6	913.3	973.2	22.0%	201.3
Land	197.9	210.2	205.6	-5.8%	-12.3
Natural gas T	890.4	917.8	910.8	-3.0%	-27.4
Natural gas D	476.1	472.8	473.4	0.7%	3.3
RoR's RAB	4.6%	4.5%	4.5%		0.1p.p.
Electricity	4.9%	4.9%	4.9%		0.0p.p.
With premium	5.3%	5.3%	5.3%		0.0p.p.
Without premium	4.5%	4.5%	4.5%		0.0p.p.
Land	0.3%	0.3%	0.3%		0.0p.p.
Natural gas T	4.8%	4.5%	4.5%		0.3p.p.
Natural gas D	5.0%	4.7%	4.7%		0.3p.p.

APPENDIX Tariff deviations

€M	1Q22	1Q21	2021
Electricity	62.2	25.4	86.9
Trading	-326.1	91.6	-218.2
Natural gasT	-119.1	-102.2	-134.5
Natural gasD	-3.1	-7.9	-0.8
Total1	-386.2	7.0	-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

€M	Non Current Current 0.0 1,696.3 58.5 416.6 200.0 250.0 0.0 0.0 1.6 2.9 260.1 2,365.8 13.7 0.0 -7.7 -3.0	Mar 2022
Bonds			1,696.3
Bank borrowings			475.1
Commercial paper			450.0
Bank overdrafts			0.0
Finance lease			4.4
TOTAL			2,625.9
Accrued interest			13.7
Prepaid interest			-10.7
TOTAL	266.2	2,362.7	2,628.9

• REN maintained its financial strength and continued to present high liquidity and a low average cost of debt;
• REN's total liquidity reached €1,360.0M, 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 2022 amounted to €430.1M (€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 nine active commercial paper programmes in the amount of €1,925M, of which €1,475M were available for use. Of the total amount 500,000 thousand Euros have a guaranteed placement, of which 250,000 thousand Euros are available for utilization at 31st March 2022.
• 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 1.62% on the 31st of March 2022 and 1.57% on the 31st of December 2021.

APPENDIX Debt and debt metrics

	1Q22	1Q21	2021
Net Debt (€M)	2,098.7	2,547.9	2,362.0
Average cost	1.6%	1.6%	1.6%
Average maturity (years)	3.2	3.2	3.3
Net Debt / EBITDA	4.4x	5.6x	5.1x
DEBT BREAKDOWN
Funding sources
Bond issues	64.9%	51.2%	62.6%
EIB	16.2%	17.3%	15.7%
Commercial paper	17.0%	24.5%	16.4%
Other	1.9%	7.0%	5.4%
TYPE
Float	28%	35%	40%
Fixed	72%	65%	60%

RATING	Long term	Short term	Outlook	Date
Moody's	Baa3	-	Positive	24/06/2021
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

Consolidated Financial Statements

CONSOLIDATED FINANCIAL STATEMENTS

Financial position

Thousand Euros		Mar 2022 Dec 2021	Thousand Euros	Mar 2022	Dec 2021
ASSETS			EQUITY
Non-current assets			Shareholders' equity
Property, plant and equipment	132,516	119,551	Share capital	667,191	667,191
Intangible assets	4,095,278	4,123,069	Own shares	-10,728	-10,728
Goodwill	4,894	4,757	Share premium	116,809	116,809
Investments in associates and joint ventures	175,052	169,283	Reserves	357,526	311,988
Investments in equity instruments at fair value through other comprehensive income	161,095	162,724	Retained earnings	329,660	232,978
Derivative financial instruments	24,981	19,347	Other changes in equity	-5,561	-5,561
Other financial assets	146	137	Net profit for the period	5,957	97,153
Trade and other receivables	39,429	37,026	Total equity	1,460,855	1,409,830
Deferred tax assets	92,526	96,673
	4,725,918	4,732,567	LIABILITIES
Current assets			Non-current liabilities
Inventories	8,601	8,545	Borrowings	2,362,740	2,390,852
Trade and other receivables	493,700	448,171	Liability for retirement benefits and others	94,230	94,109
Current income tax recoverable	0	0	Derivative financial instruments	26,758	23,112
Derivative financial instruments	125	474	Provisions	8,872	8,872
Other financial assets	0	0	Trade and other payables	683,864	507,606
Cash and cash equivalents	555,013	398,759	Deferred tax liabilities	107,330	107,569
	1,057,438	855,949		3,283,793	3,132,120
			Current liabilities
Total assets	5,783,356	5,588,516	Borrowings	266,169	375,221
			Provisions	0	0
			Trade and other payables	731,048	644,701
			Income tax payable	41,491	26,644
				1,038,708	1,046,566
			Total liabilities	4,322,501	4,178,686

Total equity and liabilities 5,783,356 5,588,516

CONSOLIDATED FINANCIAL STATEMENTS

Profit and loss

Thousand Euros	Mar 2022	Mar 2021
Sales	42	31
Services rendered	140,456	137,220
Revenue from construction of concession assets	27,080	30,476
Gains / (losses) from associates and joint ventures	2,604	1,473
Other operating income	8,546	7,323
Operating income	178,727	176,523
Cost of goods sold	-216	-195
Costs with construction of concession assets	-22,276	-25,844
External supplies and services	-17,512	-17,568
Personnel costs	-13,982	-13,664
Depreciation and amortizations	-62,086	-60,087
Provisions	0	0
Impairments	-94	-94
Other expenses	-6,069	-4,584
Operating costs	-122,236	-122,038
Operating results	56,491	54,485
Financial costs	-13,625	-12,152
Financial income	3,970	1,193
Investment income - dividends	0	0
Financial results	-9,655	-10,959
Profit before income tax and ESEC	46,836	43,526
Income tax expense	-12,861	-11,940
Energy sector extraordinary contribution (ESEC)	-28,018	-27,095
Consolidated profit for the period	5,957	4,491
Attributable to:
Equity holders of the Company	5,957	4,491
Non-controlled interest	0	0
Consolidated profit for the period	5,957	4,491
Earnings per share (expressed in euro per share)	0.01	0.01

CONSOLIDATED FINANCIAL STATEMENTS

Cash flow

Thousand Euros	Mar 2022	Mar 2021
Cash flow from operating activities:
Cash receipts from customers	897,920	595,208 a)
Cash paid to suppliers	-569,797	-348,498 a)
Cash paid to employees	-14,892	-15,798
Income tax received/paid	-2,440	-2,109
Other receipts / (payments) relating to operating activities Net cash flows from operating activities (1)	-28,634 282,158	19,587 248,391
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	34,277	1,286
Interests and other similar income	0	0
Dividends	4,263	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	-2,668	0
Intangible assets	-44,886	-47,242
Net cash flow used in investing activities (2)	-9,014	-44,480
Cash flow from financing activities:
Receipts related to:
Borrowings	200,000	465,000
Capital and supplementary obligations	0	0
Interests and other similar income	0	0
Payments related to:
Borrowings	-299,769	-485,769
Interests and other similar expense	-17,538	-16,835
Leasings	-753	-696
Interests of Leasings	-7	-8
Dividends	0	0
Net cash from / (used in) financing activities (3)	-118,067	-38,308
Net (decrease) / increase in cash and cash equivalents (1)+(2)+(3)	155,077	165,603
Effect of exchange rates	1,177	264
Cash and cash equivalents at the beginning of the year	398,759	61,169
Changes in the perimeter	0	0
Cash and cash equivalents at the end of the period	555,013	227,037
Detail of cash and cash equivalents
Cash	23	24
Bank overdrafts	0	-9,185
Bank deposits	554,990	236,197
	555,013	227,037

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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Madalena Garrido – Head of IR Alexandra Martins José Farinha Telma Mendes

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