REN-Redes Energeticas Nacionais

Investor Presentation • Jul 29, 2021

Results Report 1H2021

29th July 2021

AGENDA

1. Overview of the period

2. Business performance

3 Closing remarks .

1. Overview of the period

KEY MESSAGES 1H2021

EBITDA reached €227.9M, a contraction of 3.9% (-€9.2M) YoY attributed to (1) a reduction in RAB remuneration (-€5.6M), motivated by the decrease in RAB (with an impact of -€3.7M) and in RoR (-€1.9M); (2) a smaller OPEX contribution (-€2.5M), partially offset by a higher incentive for economic efficiency of investments (+€0.9M).

International business performance had a negative delta of €1.3M, of which €1.1M attributed to Electrogas.

Net Profit amounted to €39.5M, due to (1) a positive contribution from Financial results (increase of €3.4M to -€18.0M), a consequence of the decrease of the cost of debt (from 1.9% to 1.6%); and (2) a lower energy levy (+€1.1M) recognized in 1Q21.

Capex grew by €18.7M vs 1H20 to €79.3M, while transfers to RAB increased by 7.3M€ to €16.9M. There were some delays in transfers to RAB due to the COVID pandemic but that should be concluded by year-end.

Renewable energy sources (RES) reached 68.1% of total supply (approx. +4 p.p. than in 1H20). Consumption of electricity and natural gas increased as well as the amount of natural gas distributed.

Quality of service was stellar, for both electricity and NG, with 0.00 min of electricity interruption time, and natural gas combined availability rate at approximately 100%.

REN remains committed to the UN's Sustainable Development Goals, its efforts have not only already been recognized by ESG rating agencies, but also throughout this year, there has been several events such as, the Green bond issue and the Capital Markets day reinforcing this commitment to ESG.

SECTOR OVERVIEW

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

New regulatory period for the electricity sector

Gas Distribution Network Development Plans 2021-25

ERSE launched a public consultation with proposals to revise the Tariff Regulation for the electricity sector, with the aim of updating the regulatory mechanisms and methodologies related to the tariff structure and the allowed revenues model for the regulated activities, to be applied over the next regulatory period , from 2022 onwards

According to ERSE, the proposed changes provide a flexible regulatory framework, in order to respond to the challenges of decarbonisation and decentralization of the electricity sector. In this sense, it is worth highlighting the proposal of a TOTEX regulation, applied to the transmission (VHV) and distribution (HV and MV) activities

• Public consultation on the Gas Distribution Network Development Plans for the period 2021-25. ERSE concluded that the proposed investments do not result in tariff increases in 2025 and that there are quite different risk levels between the PDIRD-GN 2020 proposals of the different DSOs, leaving the final decision over these differences to the Government discretion, to approve part or all of the investment projects proposed by each DSO.
• ERSE considers relevant the concern of the DSO's to introduce pilot projects in their PDIRD-GN 2020 proposals, with the objective of obtaining information and expertise in the of decarbonized gases injection, namely hydrogen, in the distribution networks.

• Natural Gas annual capacity auctions
• The yearly send-out capacity auction that took place last week resulted again in the complete allocation of the Terminal send-out capacity with a price premium of 1% over the regulated tariff.

During the month of June, ERSE promoted an auction for placing electricity from Special Regime Production and an auction for the acquisition of energy by the Last Resource Supplier. The total contract volume sold is equivalent to 872 355 MWh in the 39th PRE Auction and 110 430 MWh in the 8th Last resource supplier Auction, with an weighted average final price of: 87,78 EUR/MWh and 91,26 EUR/MWh, respectively.

2. Business performance

BUSINESS HIGHLIGHTS

Superior quality of service in Portugal, albeit an increase in demand and a higher share of renewables

Electricity	Consumption	Energy transmission losses	Line length
	0.8 TWh 24.6TWh (3.2%)	2.1% 0.1pp	36km 9,038km (0.4%)
	1H20: 23.8TWh	1H20: 2.0%	1H20: 9,002km
	Renewables in consumption supply	Average interruption time
	68.1% 3.7pp	0.03min 0.00min (100.0%)
	1H20: 64.4%	1H20: 0.03min
Gas	Consumption	Combined availability rate	Line length
Transmission	1.5TWh 31.6TWh (5.1%)	99.9% 0.11pp	0km 1,375km (0.0%)
	1H20: 30.0TWh	1H20: 100.0%	1H20: 1,375km
Gas Distribution	Gas distributed	Emergency situations with response time up to 60min	Line length
	0.4TWh 4.1TWh (10.9%)	98.2% 1.0pp	225km 5,977km (3.9%)
	1H20: 3.7TWh	1H20: 99.2%	1H20: 5,752km

FINANCIAL HIGHLIGHTS

Positive contribution from Financial Results and solid improvement in Net Debt, nonetheless EBITDA and Net Profit declined

EBITDA contribution by

EBITDA reduction mostly due to lower RAB, remuneration rates and greater OPEX costs

EBITDA evolution breakdown €M

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

1H21 RESULTS 9

Return on RAB stable relatively to last year, with regulatory WACC at the set floor

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

Transfers to RAB and CAPEX increased despite the ongoing pandemic

Transfers to RAB €M

Capex €M

Key highlights

Electricity

Main investment projects:

• New 60 kV bay at Castelo Branco substation, to reinforce the transmission grid
• New 400 kV Fundão Falagueira axis through the extension of the current Falagueira - Castelo Branco line to Fundão and construction of a new 400/200kV substation
• The installation of new composite insulators on the Carregado Fanhões 2 overhead line, at 220 kV, as well as anti-corrosion protection.

Gas Transmission

Main investment projects:

Pipeline Network: GRMS heating systems and safety valves replacement as this equipment was at the end of its useful life

Gas Distribution

• Steady developments on the network expansion and densification, aiming at reaching new points of consumption (B2C)
• B2B is perceived as an anchor for network development, with 32 more clients connected in 1H2021 and constantly searching for ways to reinforcing it through mass market connections
• Licensing of 3 big projects with Capex execution expected to occur in 2H 2021

Decrease in RAB in most asset categories with Gas distribution being the exception

Average RAB evolution €M

RAB remuneration decreased across all businesses, but more sharply in electricity, driven by the decrease in the asset base

Return on RAB evolution breakdown €M

Return on RAB fell due to a smaller asset base (by €112.7M to €1,925.3M) and lower rate of return on assets with and without premium¹

Decline in Return on RAB attributed to a smaller asset base (by €42.3M to a total of €911.2M) and a lower RoR of 4.52% (-12bps)

OPEX increased by 8.9% YoY, with core OPEX rising 9.2%

Core OPEX¹ evolution €M

Key highlights

Core external costs

• Consultancy services and other 3rd party services (+€1.5M), mostly related to strategic plan and bond issuance
• Insurance costs (+€1.0M)
• Electricity costs (+€0.9M) in LNG terminal

Non-core costs

• Pass-through costs (costs accepted in the tariff) increased by €1.3M, of which €0.7M correspond to costs with cross-border and system services costs and €1.0M to cost with NG transportation

DOMESTIC BUSINESS: ELECTRICITY

Electricity EBITDA reduction due to decrease in RAB remuneration, partly offset by Opex contribution and other assets revenues

EBITDA breakdown €M

1 Includes €905.0M of Electricity without premium (€968.4M for 1H20) and €1,020.2M of Electricity with premium (€1,069.5M for 1H20); Includes Lands (€208.7M in 1H21 and €221.0M in 1H20) | 2. RoR for Electricity with premium was 5.3% in 1H21 (5.4% in 1H20), and for other Lands 0.3% in 1H21 (0.3% in 1H20)

DOMESTIC BUSINESS: GAS TRANSMISSION

Gas Transmission EBITDA reduction mainly explained by lower RAB remuneration and tariff deviations adjustments

DOMESTIC BUSINESS: GAS DISTRIBUTION Gas Distribution EBITDA fell slightly

EBITDA breakdown €M

INTERNATIONAL BUSINESS

Solid performance in Chile despite lower revenues

Contribution to Capex 1H21 €M

Key highlights

Transemel, Chile

Revenues decreased YoY mainly driven by the negative impact of the ongoing tariff review and delays in transfers to operation

Electrogas, Chile

EBITDA decreased YoY, driven by the end of the take-or-pay contract with Colbún in March of 2021 and lower available capacity of Argentinian gas

1H20: €16.8M Revenues €13.4M €3.4M (20.4%)

Solid gains in Financial Results, as the cost of debt maintained its downward trend

from REE (-€0.3M)

Effective tax rate reached 40.8%, a 3.5 p.p. increment relatively to 1H20 (including the levy)

Increase in the effective tax rate vs 1H20 reflecting the different gains with

the recovery of previous years taxes in 1H20 (€4.7M) and 1H21 (€2.3M)

Net Profit decreased as a result of lower EBITDA, partially offset by higher financial results

Net profit evolution breakdown €M Key highlights

• The positive effect of €3.4M from Financial Results as a consequence of better market conditions and higher dividends from associates (Δ€1.3M)
• Lower CESE charges (Δ€- 1.1M), reflecting the reduction of the asset base
• Decrease in tax recovery from previous years (Δ€-2.4M)

Net Debt improvement due to a higher operating cash flow and positive tariff deviations

1 Calculated as Net Debt plus Cash, bank deposits and derivative financial instruments (€323M), excluding effects of hedging on yen denominated debt, accrued interest and bank overdrafts | 2 Includes loans (5.7%) and leasing (0.2%) | 3. Includes amounts received from the Fund for Systemic Sustainability of the Energy Sector (FSSSE)

SHARE PRICE & SHAREHOLDER RETURN

The share price moved in line with the Portuguese index

Annualized closing prices %

Analyst recommendations¹

Average Price target
€2.60	€0.19 (6.8%)
1H20: €2.79

3. Closing remarks

CLOSING REMARKS

Focus on strengthening of financials and a sustainable shareholders return

As expected, EBITDA was lower as a result of reduction in RAB remuneration, which was driven by a decrease in both RAB and remuneration rates, as well as a downturn in OPEX contribution.

Net Profit stood at €39.5M mainly because of the EBITDA performance. Nevertheless, the positive impact from Financial Results mitigated this decline.

A lower Net debt was the result of a higher operating cash flow and tariff deviations surpassing the outflows resulting from investment and financing activities.

On the 14th of May REN hosted its Capital Markets Day where it presented its strategy for the 2021-2024 period focused on energy transition and an unwavering objective of achieving carbon neutrality by 2040.

The 2021-2024 Strategic Plan also provides guidance on the company's financing policy that will increasingly be focused on green bonds.

Appendix

APPENDIX Results breakdown

	1H2021			1H2021 / 1H2020
€M		1H2020	2020	Δ %	Δ Abs.
1) TOTAL REVENUES	368.6	350.8	758.5	5.1%	17.8
Revenues from assets	208.8	212.9	431.4	-1.9%	-4.1
Return on RAB	78.9	84.5	165.4	-6.6%	-5.6
Electricity	47.2	51.0	99.9	-7.3%	-3.7
Natural gas	20.6	22.1	43.1	-6.9%	-1.5
Portgás	11.0	11.3	22.4	-2.7%	-0.3
Lease revenues from hydro protection zone	0.3	0.3	0.7	-1.2%	0.0
Economic efficiency of investments	13.4	12.5	32.0	7.5%	0.9
Recovery of amortizations (net from subsidies)	106.8	106.7	214.3	0.2%	0.2
Subsidies amortization	9.3	8.9	19.0	4.4%	0.4
Revenues from Transemel	4.7	5.1	10.1	-7.1%	-0.4
Revenues of OPEX	68.4	65.8	130.1	4.0%	2.6
Other revenues	10.1	13.0	26.0	-22.6%	-2.9
Construction revenues (IFRIC 12)	76.5	54.0	160.9	41.7%	22.5
2) OPEX	74.1	68.3	145.8	8.4%	5.7
Personnel costs	28.7	27.9	55.6	3.0%	0.8
External supplies and services	35.0	29.8	68.5	17.6%	5.2
Other operational costs	10.4	10.7	21.6	-2.9%	-0.3
3) Construction costs (IFRIC 12)	66.5	45.3	142.0	46.9%	21.2
4) Depreciation and amortization	120.2	119.7	241.2	0.4%	0.5
5) Other	0.2	0.2	0.5	0.0%	0.0
6) EBIT	107.6	117.3	229.0	-8.3%	-9.7
7) Depreciation and amortization	120.2	119.7	241.2	0.4%	0.5
8) EBITDA	227.9	237.0	470.2	-3.9%	-9.2
9) Depreciation and amortization	120.2	119.7	241.2	0.4%	0.5
10) Financial result	-18.0	-21.4	-46.8	-15.8%	3.4
11) Income tax expense	23.0	21.7	44.9	6.1%	1.3
12) Extraordinary contribution on energy sector	27.1	28.2	28.1	-3.9%	-1.1
13) NET PROFIT	39.5	46.1	109.2	-14.2%	-6.5
14) Non recurrent items	24.8	23.5	22.5	5.5%	1.3
15) RECURRENT NET PROFIT	64.3	69.6	131.7	-7.5%	-5.2

NON RECURRENT ITEMS: 1H2021: i) Extraordinary energy sector levy, as established in the 2021 State budget law (€27.1M); ii) Taxes recovery from previous years (€2.3M) 1H2020: i) Extraordinary energy sector levy, as established in the 2020 State budget law (€28.2M) ii) Taxes recovery from previous years (€4.7M)

APPENDIX

Other operational revenues and costs breakdown

				1H2021 / 1H2020
€M	1H2021	1H2020	2020	Δ %	Δ Abs.
Other revenues	10.1	13.0	26.0	-22.6%	-2.9
Allowed incentives	0.7	0.7	1.3	9.6%	0.1
Interest on tariff deviation	0.2	0.2	0.5	-19.3%	0.0
Telecommunication sales and services rendered	3.5	3.4	6.7	2.6%	0.1	Includes revenues related to
Consultancy services and other services provided	0.6	1.2	2.9	-51.1%	-0.6	Electrogas' Net Profit proportion
Other revenues	5.1	7.6	14.6	-32.3%	-2.4	(€2.9M in 1H2021 and €4.0M in
Other costs	10.4	10.7	21.6	-2.9%	-0.3
Costs with ERSE	5.0	5.7	11.5	-13.7%	-0.8	1H2020)
Other	5.4	4.9	10.1	9.6%	0.5

APPENDIX EBITDA breakdown (Electricity)

					1H2021 / 1H2020
€M	1H2021	1H2020	2020	Δ %	Δ Abs.
1) REVENUES	236.0	225.6	495.8	4.6%	10.4
Revenues from assets	138.2	141.1	288.9	-2.0%	-2.9
Return on RAB	47.2	51.0	99.9	-7.3%	-3.7
Lease revenues from hydro protection zone	0.3	0.3	0.7	-1.2%	0.0
Economic efficiency of investments	13.4	12.5	32.0	7.5%	0.9
Recovery of amortizations (net from subsidies)	70.9	71.3	143.2	-0.6%	-0.4
Subsidies amortization	6.4	6.0	13.1	6.2%	0.4
Revenues of OPEX	37.1	36.3	72.2	2.2%	0.8
Other revenues	2.4	2.9	8.3	-18.0%	-0.5
Interest on tariff deviation	0.1	0.2	0.4	-26.6%	-0.1
Other	2.2	2.7	7.9	-17.4%	-0.5
Construction revenues (IFRIC 12)	58.3	45.3	126.4	28.7%	13.0
2) OPEX	31.0	30.8	68.3	0.7%	0.2
Personnel costs	8.6	8.9	17.1	-2.7%	-0.2
External supplies and services	19.1	17.2	40.0	11.0%	1.9
Other operational costs	3.3	4.7	11.1	-30.6%	-1.4
3) Construction costs (IFRIC 12)	50.9	38.8	112.2	31.2%	12.1
4) Depreciation and amortization	77.0	77.0	155.7	-0.1%	-0.1
5) Other	0.0	0.0	0.2		0.0
6) EBIT (1-2-3-4-5)	77.1	78.9	159.4	-2.3%	-1.8
7) Depreciation and amortization	77.0	77.0	155.7	-0.1%	-0.1
8) EBITDA (6+7)	154.1	156.0	315.1	-1.2%	-1.9

APPENDIX EBITDA breakdown (Natural gas transmission)

				1H2021 / 1H2020
€M	1H2021	1H2020	2020	Δ %	Δ Abs.
1) REVENUES	82.2	77.3	158.9	6.3%	4.9
Revenues from assets	51.5	52.8	104.5	-2.3%	-1.2
Return on RAB	20.6	22.1	43.1	-6.9%	-1.5
Recovery of amortizations (net from subsidies)	28.0	27.7	55.5	1.0%	0.3
Subsidies amortization	2.9	2.9	5.8	0.0%	0.0
Revenues of OPEX	21.4	20.2	40.9	6.0%	1.2
Other revenues	0.2	1.9	1.6	-90.4%	-1.7
Interest on tariff deviation	-0.2	-0.2	-0.4	9.9%	0.0
Consultancy services and other services provided	0.1	0.1	0.2	0.0%	0.0
Other	0.3	2.0	1.8	-84.8%	-1.7
Construction revenues (IFRIC 12)	9.1	2.5	11.9	271.6%	6.7
2) OPEX	16.2	13.9	28.9	16.7%	2.3
Personnel costs	4.4	4.2	8.2	5.5%	0.2
External supplies and services	9.0	7.0	15.4	29.0%	2.0
Other operational costs	2.8	2.7	5.3	2.3%	0.1
3) Construction costs (IFRIC 12)	7.9	1.4	9.7	447.8%	6.5
4) Depreciation and amortization	30.6	30.3	60.7	1.0%	0.3
5) Other	0.0	0.0	-0.1		0.0
6) EBIT	27.4	31.7	59.6	-13.3%	-4.2
7) Depreciation and amortization	30.6	30.3	60.7	1.0%	0.3
8) EBITDA	58.0	62.0	120.3	-6.3%	-3.9

A negative revenue is consistent with a negative tariff deviation

APPENDIX EBITDA breakdown (Portgás)

				1H2021 / 1H2020
€M	1H2021	1H2020	2020	Δ %	Δ Abs.
1) REVENUES	37.6	34.2	77.1	10.2%	3.5
Revenues from assets	19.0	19.0	38.0	0.3%	0.1
Return on RAB	11.0	11.3	22.4	-2.7%	-0.3
Recovery of amortizations (net from subsidies)	8.0	7.6	15.5	4.4%	0.3
Subsidies amortization	0.0	0.0	0.1	171.6%	0.0
Revenues of OPEX	10.0	9.3	16.9	7.0%	0.6
Other revenues	-0.5	-0.4	-0.5	18.3%	-0.1
Interest on tariff deviation	0.0	0.0	0.0	-82.0%	0.0
Adjustments previous years	-0.6	-0.5	-1.0	10.5%	-0.1
Other services provided	0.0	0.1	0.2	-82.5%	-0.1
Other	0.0	0.0	0.4	59.9%	0.0
Construction revenues (IFRIC 12)	9.1	6.3	22.6	45.4%	2.8
2) OPEX	8.2	6.8	13.0	19.6%	1.3
Personnel costs	2.1	2.2	4.2	-2.2%	0.0
External supplies and services	2.1	1.6	3.9	36.1%	0.6
Other operational costs	3.9	3.1	4.9	26.4%	0.8
3) Construction costs (IFRIC 12)	7.7	5.1	20.1	52.0%	2.6
4) Depreciation and amortization	8.1	7.8	15.8	4.8%	0.4
5) Other	0.0	0.0	0.0		0.0
6) EBIT	13.6	14.5	28.2	-6.1%	-0.9
7) Depreciation and amortization	8.1	7.8	15.8	4.8%	0.4
8) EBITDA	21.7	22.2	44.0	-2.3%	-0.5

APPENDIX EBITDA breakdown (Transemel)

				1H2021 / 1H2020
€M	1H2021	1H2020	2020	Δ %	Δ Abs.
1) REVENUES	4.7	5.1	10.1	-7.1%	-0.4
2) OPEX	1.6	1.7	3.3	-10.0%	-0.2
3) Depreciation and amortization	0.8	0.8	1.5	2.9%	0.0
4) EBIT	2.4	2.6	5.3	-8.1%	-0.2
5) Depreciation and amortization	0.8	0.8	1.5	2.9%	0.0
6) EBITDA	3.2	3.3	6.8	-5.6%	-0.2

APPENDIX EBITDA breakdown (Other¹ )

				1H2021 / 1H2020
€M	1H2021	1H2020	2020	Δ %	Δ Abs.
1) TOTAL REVENUES	8.1	8.7	16.5	-6.9%	-0.6
Other revenues	8.1	8.7	16.5	-6.9%	-0.6
Allowed incentives	0.7	0.7	1.3	9.6%	0.1
Interest on tariff deviation	0.2	0.2	0.4	8.7%	0.0
Telecommunication sales and services rendered	3.5	3.4	6.7	2.6%	0.1
Consultancy services and other services provided	0.3	0.2	0.6	95.0%	0.2
Other	3.3	4.2	7.5	-21.8%	-0.9
2) OPEX	17.0	15.0	32.2	13.7%	2.1
Personnel costs	13.3	12.6	25.8	6.0%	0.7
External supplies and services	3.5	2.3	6.1	52.3%	1.2
Other operational costs	0.2	0.1	0.4		0.1
3) Depreciation and amortization	3.7	3.8	7.4	-2.7%	-0.1
4) Other	0.2	0.2	0.4	0.0%	0.0
5) EBIT	-12.9	-10.4	-23.5	24.6%	-2.5	Includes the negative impacts of the
6) Depreciation and amortization	3.7	3.8	7.4	-2.7%	-0.1	PPAs2 of Portgás (€2.7M) and
7) EBITDA	-9.2	-6.5	-16.0	40.7%	-2.6	Transemel (€0.9M) in 1H2021

APPENDIX Capex and RAB

	1H2021 1H2020 2020			1H2021 / 1H2020
€M				Δ %	Δ Abs.
CAPEX	79.3	60.6	173.3	30.9%	18.7
Electricity	58.3	45.3	126.4	28.7%	13.0
Natural gasT	9.1	2.5	11.9	271.6%	6.7
Natural gasD	9.1	6.3	22.6	45.4%	2.8
Transemel	2.7	6.4	12.1	-57.6%	-3.7
Other	0.1	0.2	0.3	-47.5%	-0.1
Transfers to RAB	16.9	9.6	79.6	76.0%	7.3
Electricity	5.1	1.5	45.1	241.4%	3.6
Natural gasT	2.4	0.7	12.6	248.5%	1.7
Natural gasD	9.4	7.4	21.8	26.5%	2.0
Average RAB	3,515.2	3,681.4	3,635.0	-4.5%	-166.1
Electricity	1,925.3	2,037.9	2,000.0	-5.5%	-112.7
With premium	1,020.2	1,069.5	1,058.5	-4.6%	-49.2
Without premium	905.0	968.4	941.5	-6.5%	-63.4
Land	208.7	221.0	217.9	-5.6%	-12.3
Natural gasT	911.2	953.5	945.5	-4.4%	-42.3
Natural gasD	470.1	469.0	471.6	0.2%	1.1
RAB e.o.p.	3,469.6	3,632.1	3,564.2	-4.5%	-162.4
Electricity	1,895.5	2,005.9	1,954.9	-5.5%	-110.4
With premium	1,007.0	1,055.4	1,033.4	-4.6%	-48.4
Without premium	888.5	950.5	921.5	-6.5%	-62.0
Land	205.6	217.9	211.7	-5.7%	-12.3
Natural gasT	898.4	940.0	924.0	-4.4%	-41.6
Natural gasD	470.1	468.3	473.5	0.4%	1.9

			1H2021 / 1H2020
1H2021	1H2020	2020	Δ %	Δ Abs.
79.2	84.8	166.1	-6.6%	-5.6
47.2	51.0	99.9	-7.3%	-3.7
26.8	28.7	56.6	-6.4%	-1.8
20.4	22.3	43.3	-8.6%	-1.9
0.3	0.3	0.7	-1.2%	0.0
20.6	22.1	43.1	-6.9%	-1.5
11.0	11.3	22.4	-2.7%	-0.3
4.5%	4.6%	4.6%		-0.1p.p.
4.9%	5.0%	5.0%		-0.1p.p.
5.3%	5.4%	5.3%		-0.1p.p.
4.5%	4.6%	4.6%		-0.1p.p.
0.3%	0.3%	0.3%		0.0p.p.
4.5%	4.6%	4.6%		-0.1p.p.
4.7%	4.8%	4.8%		-0.1p.p.

APPENDIX Tariff deviations

€M	1H2021	1Q2021	1H2020
Electricity	51.9	25.4	66.7
Trading	53.2	91.6	171.6
Natural gasT	-125.8	-102.2	-53.7
Natural gasD	-5.4	-7.9	-6.6
Total1	-26.0	7.0	178.0

! 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 2021
Bonds	0.0	1,735.6	1,735.6
Bank borrowings	93.7	535.7	629.4
Commercial paper	250.0	250.0	500.0
Bank overdrafts	0.1	0.0	0.1
Finance lease	1.5	2.8	4.3
TOTAL	345.3	2,524.2	2,869.4
Accrued interest	9.3	0.0	9.3
Prepaid interest	-8.8	-8.4	-17.2
TOTAL	345.7	2,515.8	2,861.5

• REN maintained its financial strength and continued to present high liquidity and a low average cost of debt;
• REN's total liquidity reached €1,113.9M, 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 2021 amounted to €465.9M (€480.8M at the 31st of December of 2020);
• The Group had credit lines negotiated and not used in the amount of €80M, maturing up to one year, which are automatically renewed periodically (if they are not resigned in the contractually specified period for that purpose);
• REN also had eight active commercial paper programmes in the amount of €1,925M, of which €1,425M were available for use;
• During April 2021, the Group issued a Green Bond in the amount of 300,000 thousand Euros at a fixed rate.
• REN's financial liabilities had the following main types of covenants: Cross Default, Pari Passu, Negative Pledge and Gearing;
• The effect of the foreign exchange rate exposure was not considered as this exposure is totally covered by a hedge derivate in place. The average interest rates for borrowings, including commissions and other expenses, was 1.58% on the 30th June 2021 and 1.81% on the 31st of December 2020.

APPENDIX Debt and debt metrics

	1H2021	1H2020	2020
Net Debt (€M)	2,539.9	2,839.9	2,741.9
Average cost	1.6%	1.9%	1.8%
Average maturity (years)	3.7	3.8	3.4
Net Debt / EBITDA	5.6x	5.9x	5.8x
DEBT BREAKDOWN
Funding sources
Bond issues	60.3%	59.0%	50.8%
EIB	16.3%	18.0%	17.2%
Commercial paper	17.5%	16.0%	25.0%
Other	5.9%	7.0%	7.0%
TYPE
Float	40%	43%	38%
Fixed	60%	57%	62%

RATING	Long term	Short term	Outlook	Date
Moody's	Baa3	-	Positive	24/06/2021
Standard & Poor's	BBB	A-2	Stable	29/10/2020
Fitch	BBB	F3	Stable	02/06/2021

CMVM: MAIN PRESS RELEASES (from January 2021)

• Jan-09: Qualified shareholding from Great-West Lifeco
• Feb-17: Summary of annual information disclosed in 2020
• Mar-18: 2020 annual consolidated results
• Mar-23: Notice to convene the annual general shareholders meeting and deliberation proposals
• Mar-23 : Accounts reporting documents referring to the financial year ended on 31st December 2020 item 1 of the agenda for the general shareholders meeting
• Mar-23 : Corporate Governance report included in the 2020 Report and Accounts
• Apr-09: Issuance of 300 million euros of green bonds
• Apr-23: Resolutions approved at the Annual General Shareholders Meeting
• Apr-30: Payment of dividends of the 2020 financial year
• May-14: First 3 months 2021 consolidated results report
• May-14: Strategic update 2021-2024
• May-18: Communication from the shareholder Oman Oil
• Jun-02: Fitch maintains REN's rating at BBB and revises outlook to stable
• Jun-24: Moody's maintains REN's rating at 'Baa3' and revises outlook to positive

Consolidated Financial Statements

CONSOLIDATED FINANCIAL STATEMENTS

Financial position

ASSETS			EQUITY
Non-current assets			Shareholders' equity
Deferred tax assets	100,847	92,575
	4,715,955	4,736,611	LIABILITIES
Current assets			Non-current liabilities
			Current liabilities

Thousand Euros	Jun 2021	Dec 2020	Thousand Euros	Jun 2021	Dec 2020
ASSETS			EQUITY
Non-current assets			Shareholders' equity
Property, plant and equipment	128,606	127,119	Share capital	667,191	667,191
Intangible assets	4,088,419	4,130,562	Own shares	-10,728	-10,728
Goodwill	5,181	5,367	Share premium	116,809	116,809
Investments in associates and joint ventures	161,784	158,845	Reserves	299,016	289,887
Investments in equity instruments at fair value through other comprehensive income	143,226	150,850	Retained earnings	231,202	240,853
Derivative financial instruments	17,996	25,685	Other changes in equity	-5,561	-5,561
Other financial assets	119	102	Net profit for the period	39,539	109,249
Trade and other receivables	69,776	45,507	Total equity	1,337,469	1,407,700
Deferred tax assets	100,847	92,575
	4,715,955	4,736,611	LIABILITIES
Current assets			Non-current liabilities
Inventories	2,497	2,450	Borrowings	2,515,787	2,260,875
Trade and other receivables	370,725	448,099	Liability for retirement benefits and others	98,275	100,507
Current income tax recoverable	0	0	Derivative financial instruments	25,168	29,215
Derivative financial instruments	250	0	Provisions	8,508	8,508
Other financial assets	0	0	Trade and other payables	437,762	371,886
Cash and cash equivalents	308,904	61,499	Deferred tax liabilities	115,651	144,969
	682,376	512,048		3,201,152	2,915,960
			Current liabilities
Total assets	5,398,331	5,248,658	Borrowings	345,746	562,557
			Provisions	0	0
			Trade and other payables	446,539	353,800
			Income tax payable	67,426	8,641
				859,710	924,999
			Total liabilities	4,060,862	3,840,958
			Total equity and liabilities	5,398,331	5,248,658

CONSOLIDATED FINANCIAL STATEMENTS

Profit and loss

Thousand Euros	Jun 2021	Jun 2020
Sales	45	0
Services rendered	273,672	278,751
Revenue from construction of concession assets	76,536	54,021
Gains / (losses) from associates and joint ventures	3,095	4,137
Other operating income	15,426	13,849
Operating income	368,774	350,759
Cost of goods sold	-473	-248
Costs with construction of concession assets	-66,522	-45,292
External supplies and services	-35,097	-29,884
Personnel costs	-28,606	-27,764
Depreciation and amortizations	-120,229	-119,717
Provisions	0	0
Impairments	-189	-189
Other expenses	-9,880	-10,418
Operating costs	-260,996	-233,510
Operating results	107,778	117,249
Financial costs	-26,690	-30,378
Financial income	1,556	3,089
Investment income - dividends	6,947	5,932
Financial results	-18,186	-21,357
Profit before income tax and ESEC	89,592	95,892
Income tax expense	-22,982	-21,659
Energy sector extraordinary contribution (ESEC)	-27,070	-28,165
Net profit for the period	39,539	46,068
Attributable to:
Equity holders of the Company	39,539	46,068
Non-controlled interest	0	0
Consolidated profit for the period	39,539	46,068
Earnings per share (expressed in euro per share)	0.06	0.07

CONSOLIDATED FINANCIAL STATEMENTS

Cash flow

Thousand Euros	Jun 2021	Jun 2020
Cash flow from operating activities:
Cash receipts from customers	1,148,765	1,131,120 a)
Cash paid to suppliers	-724,190	-904,298 a)
Cash paid to employees	-38,824	-35,910
Income tax received/paid	2,527	725
Other receipts / (payments) relating to operating activities	7,709	3,972
Net cash flows from operating activities (1)	395,987	195,609
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	19,100	3,934
Interests and other similar income	0	0
Dividends	4,668	4,665
Payments related to:
Other financial assets	0	0
Financial investments	0	0
Equity instruments through other comprehensive income	0	0
Property, plant and equipment	-167	-7,634
Intangible assets - Concession assets	-80,757	-68,934
Net cash flow used in investing activities (2)	-57,155	-67,969
Cash flow from financing activities:
Receipts related to:
Borrowings	1,335,000	1,407,500
Capital and supplementary obligations	0	0
Interests and other similar income	0	0
Payments related to:
Borrowings	-1,278,051	-1,386,655
Interests and other similar expense	-34,686	-34,479
Dividends	-113,426	-113,426
Net cash from / (used in) financing activities (3)	-91,163	-127,060
Net (decrease) / increase in cash and cash equivalents (1)+(2)+(3)	247,669	580
Effect of exchange rates	13	-623
Cash and cash equivalents at the beginning of the year	61,169	20,521
Changes in the perimeter	0	0
Cash and cash equivalents at the end of the period	308,852	20,478
Detail of cash and cash equivalents
Cash	23	24
Bank overdrafts	-52	-2,972
Bank deposits	308,881	23,426
	308,852	20,478

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.

Visit our web site at : www.ren.pt

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

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