REN-Redes Energeticas Nacionais

Earnings Release • Mar 7, 2024

UNAUDITED ACCOUNTS 07TH MARCH 2024

UNAUDITED ACCOUNTS 07TH MARCH 2024

OVERVIEW
OF THE PERIOD

同盟

KEY MESSAGES – FINANCIAL

€514.0M +5.5% versus 2022 EBITDA

EBITDA rose mostly driven by:

• 1. Strong domestic performance (+€19.3M), supported by higher assets and opex remuneration and reduced electricity costs at the LNG terminal (-€11.0M); and
• 1. Positive contribution from the international business (+€7.4M).

€149.2M +33.5% versus 2022 Non Recurrent Net Profit

Recurring Net Profit reached €125.0M (+15.1% YoY), as a result of:

• 1. Improved operational performance, with an increase in EBIT (+€22.8M) and higher financial results (+€3.4M), driven by the positive contribution of tariff deviation interest
• 1. In parallel, with non-recurrent effects, such as revenue recovery from the international business and fiscal effects.

Net debt (excluding tariff deviations) recorded a 4.8% reduction in 2023, despite the increase in average cost of debt to 2.5% (vs 1.8% in 2022).

Including tariff deviations, Net Debt was 2,748.7 (an increase of 34.5% vs 2022), also reflecting REN's investment policy towards the Portuguese energy transition.

In February 2024, REN issued a €300M green bond, with a 8-year maturity. The demand exceeded supply substantially, covering the issuance amount by around 7 times.

CAPEX rose 49.6% in 2023 (an increase of €100M YoY), reflecting REN's focus and commitment towards energy transition.

Transfers to RAB also accelerated in 2023, with a growth of €59.3M (+36.3% YoY), recovering from delays in projects in 2022.

KEY MESSAGES – OPERATIONAL

60.6% +11.3 pp versus 2022 Renewable energy sources (RES)

Renewable Energy sources reached 60.6% of total supply (+11.3pp versus 2022), which was a record year in Portugal.

Electricity consumption remained stable YoY (50.7 TWh), whilst natural gas consumption decreased by 20.7% (to 49.0 TWh), the lowest record since 2014.

Quality of service levels remained high

The level of energy transmission losses in electricity remained in line with 2022.

Gas transmission combined availability rate reached 100%.

Innovation continued to be a priority with important developments in 2023, such as digitalization, robotization, sustainability & circular economy and integration of renewable gases.

Committed to high ESG standards

REN reviewed its sustainability strategy, focusing on the energy transition and climate change, natural capital management, valuing our people, creating value for stakeholders and responsible governance.

Near-term emissions reductions targets approved by the Science Based Target Initiative.

Joined the anti-corruption call to action of the United Nations Global Compact initiative.

H2 Green Valley Agenda & H2MED | Regulation

The H2MED project was recognized in the draft PCI list as EU Project of Common Interest.

ERSE approved tariffs and prices for electricity for 2024.

A new four-year regulatory period was approved for natural gas (which will start in 2024), with a review of the regulatory parameters, including a new reference for the rate of return.

U BUSINESS
PERFORMANCE

BUSINESS HIGHLIGHTS

QUALITY OF SERVICE LEVELS AND COMBINED AVAILABILITY RATE REMAINED HIGH IN 2023, WITH LOWER ENERGY TRANSMISSION LOSSES, IN THE CONTEXT OF GROWING ELECTRICITY AND LOWER GAS CONSUMPTION

* Excludes interruptions by fortuitous of force majeure and exceptional events.

FINANCIAL HIGHLIGHTS

IMPROVEMENT OF OPERATIONAL RESULTS AND NET PROFIT

EBITDA

INCREASE IN EBITDA DRIVEN BY ASSETS AND OPEX REMUNERATION IN DOMESTIC BUSINESS AND BY STRONG INTERNATIONAL BUSINESS PERFORMANCE

¹Includes electricity regulatory incentives and excludes Opex remuneration related to pass-through costs | ²Includes 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 This value takes into consideration the impact from the segment "Other", which includes REN SGPS, REN Serviços, REN Telecom, REN Trading, REN PRO and REN Finance B.V. | ⁵ Refers to Portgás

ROR EVOLUTION

Domestic Business

INCREASE OF BASE RETURN ON RAB, ON THE BACK OF HIGHER PORTUGUESE BOND YIELDS

* Source: Bloomberg; REN | ** Electricity data collected from Oct-22 to Sep-23; Gas data collected from Jan-23 to Dec-23.

INVESTMENT Domestic Business

BOTH CAPEX AND TRANSFERS TO RAB INCREASED IN 2023

Transfers to RAB - €M

Gas Transportation

Gas Distribution

CAPEX - €M

* The line connecting at SE Sines, the REPSOL customer and the 400 kV line panels at the Rio Maior and Bodiosa substations are 100% subsidized.

Electricity KEY HIGHLIGHTS

• New 150 kV overhead line (OHL) between Sines Substation and a client facility * and 150 kV double OHL between Caniçada and Fafe Substations;
• Installation of 400 kV line bays at Rio Maior and Bodiosa Substations, and 220 kV line bay at Carregado Substation to connect PV solar plants *;
• Modernization of aging assets and uprating of transmission capacity, including refurbishment of 400 kV OHL between Alcochete and Palmela, and Palmela and Sines Substations.

Gas Transportation

• Sines Terminal: LNG transshipment equipment between methane carriers. Replacement and upgrade of end-of-life assets;
• Pipeline Network: Upgrade of the interconnection station with Spain CTS 7000. Replacement and upgrade of end-of-life assets;
• Carriço Storage: Replacement and upgrade of end-of-life equipment and systems.

Gas Distribution

• Investments for network expansion and densification, mostly for B2C, incentivizing building decarbonization through future renewable gases
• Ongoing expansion to new industrial zones, with new prospects for B2B investments closely monitored
• Decarbonization and digitalization plan on the move: i) report for investments to adapt the distribution network for H2 blending delivered to the Portuguese government; ii) increasingly higher biomethane producers interest in Portgás concession area
• Investment plan for 2023-27 delivered to DGEG waiting to be approved.

RAB RETURNS

Domestic Business

RAB REMUNERATION INCREASED ACROSS ALL BUSINESSES DRIVEN MOSTLY BY THE INCREASE IN THE RATE OF RETURN

Return on RAB increased driven by a higher asset base (by €23.9M² to €87.5M) and higher RoR of 5.27% (vs 4.75%)

Return on RAB evolution breakdown - €M

Increase in return on RAB justified by a higher RoR of 5.70% (vs 5.29%), despite the smaller asset base (by €43.9M to a total of €830.8M)

Increase return on RAB attributed to a higher RoR (from 5.49% to 5.90%) and higher asset base (+€7.7M to a total of €491.8M)

¹ Only General System Management (GGS) activity, assets extra Totex model and Enondas | ² Reflects the power line Fernão Ferro – Trafaria 2 accepted by the regulator outside Totex (+€21.3M)

OPEX

OPEX INCREASED 29.6% YOY, WHILE CORE OPEX GREW 1.3%

OPEX €M 152.5 197.6 €45.2M (29.6%) 5.3 2022 Δ Personnel Costs Δ Core External Costs 2023 122.3 -3.6 124.0 €+1.6M (+1.3%)

¹ Calculated as OPEX minus pass-through costs (e.g., ITC mechanism, NG transportation costs, ERSE costs and subsoil occupation levies)

Domestic Business

Core OPEX¹ evolution - €M KEY HIGHLIGHTS

CORE EXTERNAL COSTS

• LNG Terminal electricity costs decreased reflecting lower electricity prices (€-11.0M)
• The decrease in electricity costs was partially offset by increases in other cost natures, such as IT costs, consultancy costs and other services

PERSONNEL COSTS

• General increases and headcount increase (+4% growth YoY, achieving 736 people in December 2023), driven by operational areas growth

NON-CORE COSTS

• Pass-through costs (costs accepted in the tariff) increased €43.5M of which €+35.2M in costs with cross-border and €+6.3M in costs with ERSE

ELECTRICITY

Domestic Business

INCREASE IN ELECTRICITY EBITDA, MOSTLY JUSTIFIED WITH HIGHER ASSETS AND OPEX REMUNERATION

¹ Excludes Opex remuneration related to pass-through costs | ²Includes €1,084.4M of Electricity without premium (€1,037.8M for 2022), €959,8M of Electricity with premium (€1,019.9M for 2022) and €181.1M of Lands (€193.3M in 2022) | ³ RoR for Electricity with premium was 6.0% in 2023 (5.5% in 2022), and for other Lands 0.4% in 2023 (0.3% in 2022)

GAS TRANSPORTATION Domestic Business

GAS TRANSMISSION EBITDA GROWTH MAINLY EXPLAINED BY HIGHER OPEX CONTRIBUTION

GAS DISTRIBUTION EBITDA INCREASE MAINLY EXPLAINED BY HIGHER RAB REMUNERATION

GAS DISTRIBUTION

Domestic Business

CHILE HIGHLIGHTS International Business

SOLID PERFORMANCE FROM THE CHILEAN BUSINESSES, CONTRIBUTING 5.0%¹ TO TOTAL EBITDA IN 2023

¹ This value takes into consideration the impact from the segment "Other", which includes REN SGPS, REN Serviços, REN Telecom, REN Trading, REN PRO and REN Finance B.V.

BELOW EBITDA

INCREASE IN FINANCIAL RESULTS, REFLECTING INTEREST ON TARIFF DEVIATION, AND DECREASE IN TAXES

€253.2M €3.9M (1.6%)

Depreciation & Amortization

Increase of €3.9M versus 2022, along with an increase in gross assets.

-€40.6M €3.4M (7.7%) Financial results

Increase in Financial results (€3.4M) to -€40.6M, mostly due to the positive impact of interest on tariff deviation generated in 2023 (+€11.5M)¹ , partially offset by the increase in financial costs due to the increase in the average cost of debt to 2.5% (from 1.8% in 2022).

€71.0M €11.3M (13.7%) Taxes

Decrease in Income tax (-€11.3M to €71.0M) reflecting non-recurring fiscal effect, despite higher EBT (+€26.2M to €220.3M) and higher extraordinary levy (+€0.3M to €28.4M), reflecting a higher regulated asset base.

The Effective tax rate (including the levy) stood at 32.2%, 10 pp below last year.

Taxes in 2023 benefited from €1.8M of tax recovery of previous years (€3.1M in 2022).

1 Related to the tariff deviation generated in 2023 of 264M€ to be recovered from the tariff.

NET PROFIT

NET PROFIT INCREASED AS A RESULT OF HIGHER EBITDA, HIGHER FINANCIAL RESULTS AND LOWER TAXES, DESPITE HIGHER DEPRECIATIONS

KEY HIGHLIGHTS

• Increase in EBITDA reflecting the positive contribution of both domestic (+€19.3M) and international businesses (+€7.4M).
• Positive effect of €3.4M from Financial Results reflecting the positive effect of interest on tariff deviations, partially offset by the increase in financial costs, as a consequence of higher cost of debt and higher net debt.
• Decrease in taxes of €11.6M reflecting non-recurring fiscal effect, despite higher EBT and higher extraordinary levy

DEBT

NET DEBT INCREASED DRIVEN BY TARIFF DEVIATIONS OUTFLOWS

¹ Excludes effects of hedging on yen denominated debt, accrued interest and bank overdrafts | ² Includes 1,135M€ of available commercial paper programs and loans, and also 80M€ of credit lines available (automatically renewed), and 40M€ of cash and cash equivalents | ³The debt maturity was obtained in an exercise where all of REN's financial instruments, either currently issued or available to issue, are used.

RENM

U 2021-2024 STRATEGIC OUTLOOK

STRATEGIC PLAN EXECUTION

IN 2023, REN WAS ABLE TO DELIVER ACCORDING TO THE 2021-24 STRATEGIC GUIDELINES

Investment growth story, delivering superior service quality

KEY ACHIEVEMENTS DURING 2023

STRATEGIC GUIDELINES 2021-24

Domestic Investment: Increase in REN's domestic CAPEX by c. 90% vs. the 2018-20 annual average

Chile: Transemel was awarded one electricity transmission concession, with an estimated CAPEX of c. €44M

High Quality of Service: 0.39 min of average interruption time in electricity and 100% of availability rate in gas

ESG highest standard *

Emissions: Reduction of 46% of scope 1 and 2 emissions (vs. 2019) and reduction of 11% in scope 3 emissions (vs. 2021)

Diversity: 33% of women in first line management positions and publication of REN's Gender Equality Plan 2024

Governance: Revision of REN's sustainability strategy and reinforcement of the BoD Selection and Diversity Policy

Solid financials and sustainable shareholder returns

Credit metrics: Maintenance of credit metrics consistent with an Investment Grade credit rating from Moody's, Fitch and S&P

Business indicators: Delivery on all financial targets communicated, surpassing EBITDA, net profit and net debt targets

Dividends: Continuation of the established biannual dividend distribution policy

STRATEGIC PLAN TARGETS

DURING 2023, REN HAS SUCCESSFULLY MET ITS 2021-24 BUSINESS PLAN TARGETS

1. Capex at total costs (including capitalized own works); Includes Transemel's organic capex A: Actuals; BP: Business Plan

KEY HIGHLIGHTS

target

EBITDA above target propelled by domestic business assets remuneration and strong international business performance

Net profit surpassed target reflecting the robust performance of the Company's EBITDA and tax effects

Net Debt on target, despite extraordinary Tariff Deviations. Without tariff deviation impact net debt would be below the target.

Total capex exceeded BP annual target, primarily due to investments in the domestic electricity transmission network RENM

W SHAPING
A SUSTAINABLE FUTURE

$AB + 1$

ACCELERATING OUR ESG COMMITMENT

PROGRESS TOWARDS OUR TARGETS

ESG PERFORMANCE AT A GLANCE

	INDICATOR	UNIT	2023	2022	YoY
	Energy consumption	GJ	4 322 497	3 646 260	19%
nt e m	Greenhouse gas emissions (scope 1 and 2)	tCO2eq	141 916	165 475	-14%
n o vir	Greenhouse gas emissions (scope 3)	tCO2eq	72 273	84 343	-14%
n E	Intensity of greenhouse gas emissions (scope 1 and 2)	tCO2 / GWh	1.30	1.41	-7%
	Capex aligned with EU taxonomy	%	83	78	5 pp
al	Women in 1st and 2nd line management positions	%	33	29	4 pp
ci o S	Employee engagement (top of mind question > 75%)	-	✓	✓	-
	Accident frequency index (REN employees)	No	1.6	1.6	-
e	Board independence	%	47	43	4 pp
c n a n	Women on the Board	%	33	36	-3 pp
er v o G	ESG linked to compensation for the Executive Committee	%	15	15	-
	Cybersecurity (Security Scorecard)	No	96/100	96/100	-

Note: Unaudited ESG information

ESG HIGHLIGHTS

REN IS STRONGLY COMMITTED WITH SUSTAINABILITY

• Approval of near-term scope 1, 2 and 3 reduction targets according to the methodology and criteria of the Science Based Target initiative
• Installation of 1.5 MW of self-consumption systems (photovoltaic and solar thermal)
• Certification of the gas infrastructure for hydrogen intake underway
• Fleet electrification (49% in 2023 vs. 34% in 2022)
• Development of a circular economy strategy and roadmap

• Implementation of nature-based solutions and reforestation with native species

• Target of 1/3 of women in first line management positions achieved

• REN joined the Pact for Mental Health in the Workplace by Católica University Lisbon
• Organizational climate survey with around 90% of employee participation
• 8 doctoral and master thesis receive the REN Award for their contribution to the development of the energy sector

• Organization of the first edition of REN's ESG and sustainability talks "Encontros com o Futuro", in Lisbon and Porto, in partnership with Jornal Público

• Review of REN's sustainability strategy following stakeholder consultation and double materiality analysis

• REN joined the UN Anti-Corruption Call
• Pre-audit of the Corruption Prevention Model for future certification according to ISO 37001
• Certification of the Information Security Management System (ISO 27001) and of the Asset Management System (ISO 55001)
• Inclusion of ESG criteria in procurement processes
• Publication of the first integrated annual report (aligned with the new GRI Standards, SASB, TCFD, EU Taxonomy and CSRD)

Note: Unaudited ESG information

HIGHEST ESG STANDARDS

IMPROVING OUR PERFORMANCE IN INTERNATIONAL ESG SCORES

Scale	Score	Strengths	Latest update
D-A	A	Governance, Opportunity disclosure, Risk management processes, and Targets	February 2024
0-100	60	Transparency and reporting, Business ethics, Innovation management, Resource efficiency and circularity, Climate strategy, and Labour practices	February 2024
100-0	18.5	Emissions, Occupational health and safety, Land use and biodiversity, Human capital, and Carbon	November 2023
CCC-AAA	AAA	Biodiversity and land use, Carbon emissions, and Governance	March 2023
D-A	B	Not available	September 2023

RENK

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CLOSING
REMARKS

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CLOSING REMARKS

STRONG DOMESTIC AND INTERNATIONAL OPERATIONAL PERFORMANCE, WITH THE FULFILLMENT OF THE 2021-2024 BUSINESS PLAN AND THE ACHIEVEMENT OF TRANSITION GOALS FOR RENEWABLE ENERGY SOURCES

€514.0M +5.5% versus 2022 EBITDA

With Domestic and International businesses delivering a robust performance and a significant contribution from lower electricity costs at the LNG terminal.

Led by enhancement in the operational activity and financial results, on the back of a positive contribution of tariff deviation interest and supportedd by the impact of non-recurring effects.

Net Debt reduction despite the rise in the average cost of debt (from 1.8% to 2.5%).

CAPEX and Transfers to RAB accelerated in 2023, with REN continuing to play a key role in supporting energy policy and energy transition targets.

REN issued a €300M green bonds, with a 8-year maturity. This issuance was aligned with REN's regular financing policy and reinforces its investment grade profile.

Resulting from 2023 results, the Board of Directors will propose at the General Shareholders' Meeting on May 09th, the payment of a dividend in the amount of 9 cents per share (maintaining its annual remuneration plan of 15.4 cents per share paid in two tranches).

APPENDIX 1 REGULATION

Electricity Revenues 2022-25 1Revenue Cap for (CAPEX + OPEX) TOTEX model : A revenue cap applied to total controllable costs *

Overview

TOTEX

Efficiency Sharing Mechanism

+

Incentives

+

• 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 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
• New Incentive to the Improvement of the TSO Technical Performance (IMDT) based on performance metrics
• Incentive ranges between -20M€ and 20M€

The annual remuneration starts at 264.3M€ and is updated according to:

• RoR indexed to 10Y PGB yields (updated monthly)
• Annual change of GDP deflator (from 2023 onwards)
• Annual efficiency factor of 1.5% (from 2023 onwards)
• Volume drivers (Km of network and power producer connections; including 2022)

Efficiencies are shared progressively (between 0%, 50% and 100%) and are measured against the reference return set by ERSE

* According to public information stated in ERSE (Parâmetros de Regulação para o Período 2022-2025 -https://www.erse.pt/media/bjdnrr05/par%C3%A2metros-2022-2025.pdf) | ¹ Excludes System Management activity

RETURN ON RAB FOR GAS

REGULATION

TRANSPARENT AND STABLE RETURN MECHANISM

RoR Indexation mechanism

Every year

• Base RoR indexed to the average Portuguese government 10-Y bond yields
• Electricity - RoR / 10y PGB relation of 0.3 (i.e., 1% change in RoR reflects a 3.3% change in 10y PGB)
• Gas - RoR / 10y PGB relation of 0.4 (i.e., 1% change in RoR reflects a 2,5% change in 10y PGB)

ROR Evolution, %

Gas Transportation

Gas Distribution

MAPPENDIX 2 FINANCIALS

RESULTS BREAKDOWN

APPENDIX		2023	2022	2023 / 2022
	€M			Δ %	Δ Abs.
RESULTS	1) TOTAL REVENUES	988.3	823.0	20.1%	165.3
	Revenues from assets	215.3	209.4	2.8%	5.8
BREAKDOWN	Return on RAB	80.9	75.8	6.8%	5.1
	Electricity1	4.6	3.0	52.8%	1.6
	Gas Transportation	47.3	46.2	2.4%	1.1
	Gas Distribution	29.0	26.6	9.2%	2.4
	Lease revenues from hydro protection zone	0.7	0.7	-1.4%	0.0
	Incentive to Improve Technical Performance (IMDT)	19.0	20.0	-5.2%	-1.0
	Recovery of amortizations (net from subsidies)	95.5	94.7	0.9%	0.8
	Subsidies amortization	19.2	18.3	4.9%	0.9
	Revenues from Transemel	19.5	13.3	46.7%	6.2
	Revenues of TOTEX	281.9	271.0	4.0%	10.9
	Revenues of OPEX	153.7	103.2	49.0%	50.6
	Other revenues	20.6	28.3	-27.2%	-7.7
	Construction revenues (IFRIC 12)	297.4	197.9	50.3%	99.5
	2) OPEX	202.8	157.4	28.8%	45.4
	Personnel costs	65.2	59.6	9.4%	5.6
	External supplies and services	114.9	82.0	40.1%	32.9
	Other operational costs	22.7	15.9	43.0%	6.8
	3) Construction costs (IFRIC 12)	267.8	175.1	53.0%	92.7
	4) Depreciation and amortization	253.2	249.3	1.6%	3.9
	5) Other	3.6	3.2	15.4%	0.5
	6) EBIT	260.8	238.0	9.6%	22.8
	7) Depreciation and amortization	253.2	249.3	1.6%	3.9
	8) EBITDA	514.0	487.3	5.5%	26.7
	9) Depreciation and amortization	253.2	249.3	1.6%	3.9
1 System management activity includes asset from transmission activity of the electricity segment, accepted	10) Financial result	-40.6	-44.0	7.7%	3.4
by regulator outside Totex amount (power line Fernão	11) Income tax expense	42.7	54.3	-21.4%	-11.6
Ferro-Trafaria 2)	12) Extraordinary contribution on energy sector	28.4	28.0	1.2%	0.3
	13) NET PROFIT	149.2	111.8	33.5%	37.5
	14) Non recurrent items	-24.2	-3.1	n.m.	-21.1
	15) RECURRENT NET PROFIT	125.0	108.7	15.1%	16.4

NON RECURRENT ITEMS

2023

i) Taxes recovery from previous years (€1.8M)

ii) Non-recurring fiscal effect related to the

capitalization of operational companies (€18.6M) iii) Correction of revenues from previous years in

Transemel (€3.9M)

2022

i) Taxes recovery from previous years (€3.1M)

OTHER OPERATIONAL REVENUES & COSTS BREAKDOWN

	2023		2023 / 2022
€M		2022	Δ %	Δ Abs.
Other revenues	20.6	28.3	-27.2%	-7.7
Allowed incentives	0.9	0.9	0.6%	0.0
Telecommunication sales and services rendered	7.9	7.8	1.4%	0.1
Consultancy services and other services provided	2.2	2.7	-18.7%	-0.5
Other revenues	9.6	16.8	-43.3%	-7.3
Other costs	22.7	15.9	43.0%	6.8
Costs with ERSE	13.0	6.7	93.8%	6.3
Other	9.7	9.2	5.9%	0.5

Includes revenues related to Electrogas' Net Profit proportion (€12.2M in 2023 and €11.6M in 2022)

EBITDA BREAKDOWN

Electricity Enondas (wave energy concession)

1 System management activity includes asset from transmission activity of the electricity segment, accepted by regulator outside Totex amount (power line Fernão Ferro-Trafaria 2)

	2023	2022	2023 / 2022
€M			Δ %	Δ Abs.
1) REVENUES	665.5	529.0	25.8%	136.6
Revenues from assets	59.7	57.2	4.4%	2.5
Return on RAB1	4.6	3.0	52.8%	1.6
Lease revenues from hydro protection zone	0.7	0.7	-1.4%	0.0
Incentive to Improve Technical Performance (IMDT)	19.0	20.0	-5.2%	-1.0
Recovery of amortizations (net from subsidies)	21.9	20.8	4.8%	1.0
Subsidies amortization	13.7	12.7	7.4%	0.9
Revenues of TOTEX	281.9	271.0	4.0%	10.9
Revenues of OPEX	81.6	40.3	102.6%	41.3
Other revenues	-1.0	6.1	-116.6%	-7.2
Construction revenues (IFRIC 12)	243.3	154.3	57.7%	89.0
2) OPEX	105.4	58.4	80.3%	46.9
Personnel costs	19.4	17.9	8.7%	1.6
External supplies and services	76.0	37.0	105.3%	39.0
Other operational costs	10.0	3.6	179.0%	6.4
3) Construction costs (IFRIC 12)	223.3	138.2	61.5%	85.0
4) Depreciation and amortization	163.6	161.0	1.6%	2.7
5) Other	-1.7	1.5	-211.9%	-3.2
6) EBIT (1-2-3-4-5)	175.0	169.8	3.0%	5.1
7) Depreciation and amortization	163.6	161.0	1.6%	2.7
8) EBITDA (6+7)	338.6	330.8	2.4%	7.8

EBITDA BREAKDOWN

	2023	2022	2023 / 2022
€M			Δ %	Δ Abs.
1) REVENUES	191.2	168.5	13.5%	22.7
Revenues from assets	109.9	108.8	1.1%	1.2
Return on RAB	47.3	46.2	2.4%	1.1
Recovery of amortizations (net from subsidies)	57.2	57.1	0.2%	0.1
Subsidies amortization	5.4	5.4	-0.9%	0.0
Revenues of OPEX	54.4	46.3	17.7%	8.2
Other revenues	-1.3	-1.0	26.7%	-0.3
Consultancy services and other services provided	0.2	0.1	78.2%	0.1
Other	-1.5	-1.2	32.7%	-0.4
Construction revenues (IFRIC 12)	28.2	14.5	94.4%	13.7
2) OPEX	34.4	43.7	-21.2%	-9.3
Personnel costs	8.7	8.4	3.1%	0.3
External supplies and services	19.7	29.5	-33.0%	-9.7
Other operational costs	6.0	5.8	3.2%	0.2
3) Construction costs (IFRIC 12)	23.8	11.4	108.7%	12.4
4) Depreciation and amortization	62.4	61.7	1.1%	0.7
5) Other	0.0	0.0	n.m.	0.0
6) EBIT (1-2-3-4-5)	70.6	51.7	36.7%	19.0
7) Depreciation and amortization	62.4	61.7	1.1%	0.7
8) EBITDA (6+7)	133.0	113.3	17.4%	19.7

EBITDA BREAKDOWN

	2023	2022	2023 / 2022
€M			Δ %	Δ Abs.
1) REVENUES	88.2	89.7	-1.6%	-1.4
Revenues from assets	45.6	43.4	4.9%	2.1
Return on RAB	29.0	26.6	9.2%	2.4
Recovery of amortizations (net from subsidies)	16.5	16.8	-1.7%	-0.3
Subsidies amortization	0.1	0.1	-5.9%	0.0
Revenues of OPEX	17.7	16.6	6.4%	1.1
Other revenues	0.3	1.0	-66.8%	-0.7
Adjustments previous years	-0.1	0.6	-115.4%	-0.7
Other services provided	0.4	0.3	54.0%	0.1
Other	0.0	0.1	-69.3%	-0.1
Construction revenues (IFRIC 12)	24.6	28.6	-14.0%	-4.0
2) OPEX	16.2	13.9	16.6%	2.3
Personnel costs	4.3	4.0	6.6%	0.3
External supplies and services	6.1	4.8	27.7%	1.3
Other operational costs	5.8	5.1	14.0%	0.7
3) Construction costs (IFRIC 12)	20.8	25.5	-18.5%	-4.7
4) Depreciation and amortization	17.2	17.5	-1.4%	-0.3
5) Other	0.4	0.1	676.4%	0.3
6) EBIT (1-2-3-4-5)	33.6	32.7	2.6%	0.9
7) Depreciation and amortization	17.2	17.5	-1.4%	-0.3
8) EBITDA (6+7)	50.8	50.2	1.2%	0.6

EBITDA BREAKDOWN

Transemel (Excl. PPA)

	2023	2022	2023 / 2022
€M			Δ %	Δ Abs.
1) REVENUES	20.7	13.7	51.0%	7.0
2) OPEX	5.1	4.9	4.7%	0.2
3) Depreciation and amortization	2.9	2.1	35.5%	0.8
4) Other	0.1	0.1	-21.5%	0.0
5) EBIT (1-2-3-4)	12.6	6.6	91.1%	6.0
6) Depreciation and amortization	2.9	2.1	35.5%	0.8
7) EBITDA (6+7)	15.5	8.7	77.5%	6.8

EBITDA BREAKDOWN

Other

REN SGPS REN Serviços REN Telecom REN Trading REN PRO Aerio Chile SPA Apolo Chile SPA REN Finance BV

	2023	2022		2023 / 2022
€M			Δ %	Δ Abs.
1) REVENUES	22.6	22.2	1.9%	0.4
Other revenues	22.6	22.2	1.9%	0.4
Allowed incentives	0.9	0.9	0.6%	0.0
Telecommunication sales and services rendered	7.9	7.8	1.4%	0.1
Consultancy services and other services provided	0.5	1.3	-61.8%	-0.8
Other	13.3	12.1	9.2%	1.1
2) OPEX	41.7	36.5	14.2%	5.2
Personnel costs	31.8	28.6	11.2%	3.2
External supplies and services	9.5	7.5	26.8%	2.0
Other operational costs	0.4	0.4	-1.7%	0.0
3) Depreciation and amortization	7.1	7.0	1.0%	0.1
4) Other	4.9	1.5	221.3%	3.3
5) EBIT (1-2-3-4)	-31.0	-22.8	35.9%	-8.2
6) Depreciation and amortization	7.1	7.0	1.0%	0.1
7) EBITDA (5+6)	-23.9	-15.8	51.4%	-8.1

Includes the negative impacts of the PPAs¹ of Portgás (€5.1M in 2023 and 2022) and Transemel (€1.7M in 2023 and €1.7M 2022)

¹ PPA - Purchase Price Allocation

CAPEX & RAB

	2023	2022		2023 / 2022
€M			Δ %	Δ Abs.
CAPEX	301.5	201.5	49.6%	100.0
Electricity	243.3	154.3	57.7%	89.0
Gas Transportation	28.2	14.5	94.4%	13.7
Gas Distribution	24.6	28.6	-14.0%	-4.0
Transemel	5.1	3.9	30.4%	1.2
Other	0.3	0.2	37.8%	0.1
Transfers to RAB	222.6	163.3	36.3%	59.3
Electricity	171.0	125.3	36.5%	45.7
Gas Transportation	24.2	11.6	109.5%	12.7
Gas Distribution	27.3	26.5	3.2%	0.9
Average RAB	3,547.8	3,609.8	-1.7%	-61.9
Electricity	2,044.2	2,057.7	-0.7%	-13.5
With premium	959.8	1,019.9	-5.9%	-60.0
Without premium	1,084.4	1,037.8	4.5%	46.5
Land	181.1	193.3	-6.3%	-12.2
Gas Transportation	830.8	874.7	-5.0%	-43.9
Gas Distribution	491.8	484.0	1.6%	7.7
RAB e.o.p.	3,526.5	3,573.5	-1.3%	-47.0
Electricity	2,041.3	2,046.8	-0.3%	-5.6
With premium	931.9	993.9	-6.2%	-62.0
Without premium	1,109.4	1,052.9	5.4%	56.4
Land	174.9	187.2	-6.5%	-12.2
Gas Transportation	814.3	852.0	-4.4%	-37.7
Gas Distribution	496.0	487.5	1.7%	8.5

	2023	2022		2023 / 2022
€M			Δ %	Δ Abs.
RAB's remuneration	197.3	181.4	8.8%	15.9
Electricity	120.3	107.9	11.5%	12.4
With premium	59.1	53.9	9.6%	5.2
Without premium	61.3	54.0	13.4%	7.2
Land	0.7	0.7	-1.4%	0.0
Gas Transportation	47.3	46.2	2.4%	1.1
Gas Distribution	29.0	26.6	9.2%	2.4
RoR's RAB	5.4%	4.9%		0.5p.p.
Electricity	5.6%	5.1%		0.5p.p.
With premium	6.0%	5.5%		0.5p.p.
Without premium	5.3%	4.7%		0.5p.p.
Land	0.4%	0.3%		0.0p.p.
Gas Transportation	5.7%	5.3%		0.4p.p.
Gas Distribution	5.9%	5.5%		0.4p.p.

TARIFF DEVIATIONS

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

€M	Current	2022
Electricity	75.0	60.2
Trading	238.8	-494.6
Gas Transportation	-10.1	-76.4
Gas Distribution	23.7	11.5
Total	327.5	-499.4

APPENDIX FUNDING SOURCES

€M	Current	Non Current	2023
Bonds	64.0	1053.0	1,117.0
Bank borrowings	68.8	419.5	488.3
Commercial paper	556.0	550.0	1,106.0
Finance lease	1.7	3.3	5.0
TOTAL	690.5	2,025.8	2,716.4
Accrued interest	22.8	-	22.8
Prepaid interest	-2.4	-3.1	-5.4
TOTAL	710.9	2,022.7	2,733.6

• Bank loans are mostly composed of loans contracted with the European Investment Bank (EIB), which at 31 December 2023 amounted to 453,300 thousand Euros (at 31 December 2022 it was 371,583 thousand Euros).
• The Group also has credit lines negotiated and not used in the amount of 80,000 thousand Euros, maturing up to one year, which are automatically renewable periodically (if they are not resigned in the contractually specified period for that purpose).
• As of 31 December 2023, the Group has twelve commercial paper programs in the amount of 2,175,000 thousand Euros, of which 1,069,000 thousand Euros are available for utilization. Of the total amount 900,000 thousand Euros have a guaranteed placement, of which 300,000 thousand Euros are available for utilization at 31 December 2023.;
• REN's financial liabilities have 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 hedge derivate in place. The average interest rates for borrowings including commissions and other expenses were 2.49% in 2023 and 1.81% in 2022.

DEBT & DEBT METRICS

	2023	2022
Net Debt (€M)	2,748.7	2,043.7
Average cost	2.5%	1.8%
Average maturity (years)	2.5	3.0
Net Debt / EBITDA	4.2x	4.2x
DEBT BREAKDOWN
Funding sources
Bond issues	42.3%	72.0%
EIB	16.4%	15.5%
Commercial paper	39.9%	10.4%
Other	1.4%	2.0%
TYPE
Float	38%	29%

RATING	Long Term	Short Term	Outlook	Date
Moody's	Baa2	-	Stable	22/12/2023
Fitch	BBB	F3	Stable	21/11/2023
Standard & Poor's	BBB	A-2	Stable	23/03/2023

Float	38%	29%
Fixed	62%	71%

O CONSOLIDATED FINANCIAL STATEMENTS

RESULTS REPORT 2023 (UNAUDITED ACCOUNTS)

CONSOLIDATED FINANCIAL STATEMENTS

FINANCIAL POSITION

Thousand Euros	2023	2022
Assets
Non-current assets
Property, plant and equipment	121,110	127,816
Intangible assets	4,120,617	4,077,471
Goodwill	2,770	4,515
Investments in associates and joint ventures	171,879	180,770
Investments in equity instruments at fair value through other comprehensive income	135,741	145,715
Derivative financial instruments	45,745	80,564
Other financial assets	6,164	179
Trade and other receivables	93,211	55,666
Deferred tax assets	53,437	69,803
	4,750,674	4,742,499
Current assets
Inventories	7,193	5,134
Trade and other receivables	708,393	327,764
Current income tax recoverable	25,419	10,671
Derivative financial instruments	8,619	236
Asset related to the transitional gas price stabilization regime - Decree-Law 84- D/2022	228,789	1,000,000
Cash and cash equivalents	40,145	365,292
	1,018,558	1,709,097
Total Assets	5,769,232	6,451,596

Thousand,Euros	2023	2022
Equity
Shareholders' equity
Share capital	667,191	667,191
Own shares	-10,728	-10,728
Share premium	116,809	116,809
Reserves	356,691	396,065
Retained earnings	238,478	241,987
Other changes in equity	-5,561	-5,561
Net profit for the period	149,236	111,771
Total Equity	1,512,116	1,517,534
Thousand Euros	2023	2022
Liabilities
Non-current liabilities
Borrowings	2,022,701	1,695,362
Liability for retirement benefits and others	75,855	64,939
Derivative financial instruments	52,006	73,464
Provisions	10,016	10,576
Trade and other payables	480,077	450,297
Deferred tax liabilities	107,905	115,064
	2,748,560	2,409,702
Current liabilities
Borrowings	710,941	638,944
Trade and other payables	560,225	885,416
Liability related to the transitional gas
price stabilization regime	228,789	1,000,000
Decree-Law 84-D/2022
Derivative financial instruments	8,601	-
	1,508,556	2,524,360
Total Liabilities	4,257,116	4,934,062
Total Equity and Liabilities	5,769,232	6,451,596

CONSOLIDATED FINANCIAL STATEMENTS

PROFIT AND LOSS

Thousand Euros	2023	2022
Sales	179	96
Services rendered	651,581	588,130
Revenue from construction of concession assets	296,123	197,420
Gains/(losses) from associates and joint ventures	12,850	11,812
Other operating income	30,446	27,225
Operating Income	991,179	824,683
Cost of goods sold	-1,008	-901
Costs with construction of concession assets	-267,810	-175,095
External supplies and services	-115,453	-82,516
Personnel costs	-63,980	-58,519
Depreciation and amortizations	-253,202	-249,276
Provisions	-812	-2,230
Impairments	-3,472	-1,437
Other expenses	-21,719	-14,988
Operating costs	-727,456	-584,962
Operating results	263,723	239,721
Financial costs	-83,151	-67,394
Financial income	29,656	11,911
Investment income - dividends	10,018	9,815
Financial results	-43,477	-45,668
Profit before income tax and ESEC	220,246	194,053
Income tax expense	-42,655	-54,263
Energy sector extraordinary contribution (ESEC)	-28,356	-28,019
Consolidated profit for the period	149,236	111,771
Attributable to:
Equity holders of the Company	149,236	111,771
Consolidated profit for the period	149,236	111,771
Earnings per share (expressed in euro per share)	0.22	0.17

CONSOLIDATED FINANCIAL STATEMENTS

CASH FLOW

	Year ended
Thousand Euros	31.12.2023	31.12.2022
Cash flow from operating activities:
Cash receipts from customers	1,924,927	3,214,161
Cash paid to suppliers	-2,302,451	-2,394,772
Cash paid to employees	-79,719	-76,220
Income tax received/paid	-31,373	-77,970
Other receipts / (payments) relating to operating activities	118,655	-51,733
Net cash flows from operating activities (1)	-369,961	613,466
Cash flow from investing activities:
Receipts related to:
Investments in associates	231	391
Investment grants	65,713	83,890
Dividends	25,298	21,551
Payments related to:
Other financial assets	-6,000	-
Property, plant and equipment	-5,132	-6,266
Intangible assets	-244,541	-201,572
Net cash flow used in investing activities (2)	-164,431	-102,006
Cash flow from financing activities:
Receipts related to:
Borrowings	3,757,500	1,165,000
Interests and other similar income	3,450	-
Payments related to:
Borrowings	-3,379,783	-1,523,313
Interests and other similar expense	-65,125	-40,545
Leasings	-2,239	-2,157
Interests of Leasings	-100	-26
Dividends	-102,150	-144,602
Net cash from / (used in) financing activities (3)	211,553	-545,643
Net (decrease) / increase in cash and cash equivalents	-322,839	-34,183
(1)+(2)+(3)
Effect of exchange rates	-2,308	716
Cash and cash equivalents at the beginning of the year	365,292	398,759
Cash and cash equivalents at the end of the period	40,145	365,292
Detail of cash and cash equivalents
Cash	8	1
Bank deposits	40,137	365,291
	40,145	365,292

DISCLAIMER

This document has been prepared by REN – Redes Energéticas Nacionais, SGPS, S.A (the "Company") and its purpose is merely informative. As such, this document may be amended and supplemented at the discretion of REN and it should be read as a overview of the matters addressed or contained herein.

By attending the meeting where this presentation takes place, or by reading the presentation slides, you acknowledge and agree to be bound by the following conditions and restrictions:

• 1. 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.
• 1. The purpose of this document is merely of informative nature and this presentation and all materials, documents and information used herein 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.
• 1. Any decision to invest in any securities of the Company or any of its affiliates or subsidiaries in any offering (public or private) should be made solely on the basis of the information to be contained in the relevant prospectus, key investor information or final offering memorandum provided to the investors and to be published in due course in relation to any such offering and/or public information on the Company or any of its affiliates or subsidiaries available in the market.
• 1. This document may also contain statements regarding the perspectives, objectives, and goals of REN, namely concerning ESG (Environmental, Social & Governance) objectives, including with respect to energy transition, carbon intensity reduction or carbon neutrality. An ambition expresses an outcome desired or intended by REN, it being specified that the means to be deployed may not depend solely on REN and shall be considered as non-binding and for information purposes only.
• 1. This presentation contains forward-looking statements regarding future events and the future results of REN. Accordingly, neither REN nor any other person can assure that its future results, performance or events will meet those expectations, nor assume any responsibility for the accuracy and completeness of the forward-looking statements.
• 1. Forward-looking statements include, among other things, statements concerning the potential exposure of REN to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections, and assumptions. All statements other than historical facts may be deemed to be, forward-looking statements. Words such as 'expects', 'anticipates', 'targets', 'goals', 'projects', 'intends', 'plans', 'believes', 'seeks', 'estimates', variations of such words, and similar expressions are intended to identify such forward-looking statements.
• 1. Any information and forward-looking statements contained in this document made by or on behalf of REN speak only with regard to the date they are made or presented.
• 1. REN does not undertake to update the information and the forward-looking statements, particularly, to reflect any changes in REN's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

CONTACTS

VISIT OUR WEB SITE AT WWW.REN.PT

OR CONTACT US: Madalena Garrido – Head of IR Alexandra Martins Mariana Asseiceiro Telma Mendes

Avenida Estados Unidos da América, 55,1749-061, Lisboa - Portugal ir@ren.pt