REN-Redes Energeticas Nacionais

Investor Presentation • May 14, 2021

Agenda for today

09h30 Capital Markets' Presentation

Consistent success journey

REN's strategy: at the core of energy transition

• ESG highest standard
• Investment growth story
• Solid financials and shareholder return

Closing remarks

Rodrigo Costa (CEO)

João Conceição (COO)

Gonçalo Morais Soares (CFO)

2

Rodrigo Costa (CEO)

10h30 Q&A

Closure 11h00

Our world is evolving and companies are adapting

World moving to tackle global warming

Companies deploying strategies accordingly

1.5ºC +55%

limit to achieve climate neutrality, as committed in the Paris Agreement

CO² emissions cut by 2030, established by European Green Deal to facilitate the 2050 climate neutrality target

x9

increase in green hydrogen demand by 2050, reaching 650 million tons

~2 Tn€

investment in power T&D over 2019-40 to ensure energy transition in Europe

x2

increase of volume of assets under management in dedicated ESG funds in last 2 years (+1.5 Tn€ in 2020)

TSOs are adapting priorities in line with recent trends

Dedicated investment cycles to sustain quality and security of supply in the context of infrastructure aging

Increasing interconnections across countries, while debottlenecking areas to accommodate renewables and distributed resources growth

Resilience Need for improved reliability requirements to face power interruptions and extreme climate events

Digitalization New wave of operational excellence through advanced analytics and automation

Evolving

market design Alternative remuneration schemes benefiting output focus

REN secured green transformation in Portugal

REN has enabled green sources to grow in Portugal…

Installed capacity of renewables

REN's investment of >3.1B€ to electricity grid maintenance and expansion allowed Portugal to be a clear leader in EU (~50% of electricity volume from green sources in 2020 YE for Portugal vs. ~35% for Europe)

… while keeping a stable and reliable service

0.00 min of gas supply interruption duration per offtake in 2020

24 days of 100% renewable energy in 2020

0.03 min of electricity average interruption time in 2020

REN successfully met 2018-21 Business Plan targets and provided solid returns to investors

Average results met 2018-21 BP yearly targets

REN achieved key regulatory efficiency targets, with stability remaining a guiding principle of the regulation going forward

Total shareholder return (2015 to Apr. 21)

Dividend yield (2015 to 2019)

1. Capex at total costs (including capitalized own works); excludes Transemel organic capex

2. Considering 5 reference European TSO peers

Source: Bloomberg

REN displaying reliable and consistent performance for all stakeholders

>39,000 hectares

of forest cleaning in the last 7 years

People

~700

employees in stable team (>65% with bachelor degree)

+1,300

indirect collaborators (service providers and contractors)

Commitment

kept with industry partners, even during challenging times (Covid)

~40%

average effective tax rate vs. 23% for top PSI-20 in 2018-19

REN remains committed to UN's Sustainable Development Goals, engaging in several initiatives

Environmental

Social

Governance

Education | Environmental and biodiversity educational initiatives Reforestation | Reforestation of right of way with native species Climate | Subscription to UN Business Ambition for 1.5ºC, to limit global warming

Gender Equality | In 2020, REN had 27% of women in management positions Training | In 2020, REN ran courses for its employees for a total of ~25k hours Social initiatives | Close relationship with local communities through CSR programs design to address social issues

United Nations Global Compact | Founding member, REN adopted 10 principles CEO Guide to Human Rights BCSD Portugal | Defense of human rights

Efforts already recognized by ESG rating agencies

REN is stepping up and accelerating its ESG commitment

12

REN pushing for investment growth in Portugal and Chile

Average annual capex, M€

REN allocating up to 75% of electricity capex to expansion

15

REN doubling-down on green energy enablement by connecting renewables

REN will enable growth in renewable energy sources while maintaining security of supply as priority in a context of coal phase out

projects, representing ~40M€ stations and deblending solutions) +10% Blending of H² in gas grids by 2030

5% Target H² blending into grid

REN aims to ensure gas decarbonization in the next decade and

lead H² adoption leveraging sector coupling experience

2026

17

Strong national decarbonization targets with an H² plan focused on establishing mechanisms for initial projects, while maintaining grids as a key piece to sustain security of supply

GHG gases reduction by 2050 vs. 1990 emission levels

~60%

Portgás preparing grid compatibility with green gases to deliver H² transformation to the final consumer and industries, while participating in related European forums

2030

33% Of total gas capex transmission dedicated to investment in H²

REN will lead H² deployment in Portugal

Investment in additional opportunities (H² dedicated pipes in industrial clusters, charging

< 2 USD/kg H²

~3,000 km of additional line length to support renewables growth until 2025

cost of green hydrogen,

achieving the lowest value globally by 2030

~40 GW of additional RES

for levelized

REN's diversified and growing portfolio

Present in regions favorable to solar PV and green H² development, namely in the north Strong organic growth momentum

Gas to remain key element to enable energy transition

Growing natural gas consumption, including residential sector

Internationally, REN is committed to Chile and intends to contribute for the country's decarbonization

Chile is decarbonizing fast, with an ambitious green H² agenda and expected grid expansion

dedicated to H² production until 2030

Biobío

Valparaíso Santiago

Substation cost Avg. global peers below Digital substations upgrade and deployment to boost extended automation 5G nano-sensors for asset monitoring and integrity

Electricity

Resilience and quality

Leading player in operational performance, while planning concrete investments in resilience to keep strong positioning

20

Portfolio re-alignment with shift towards electricity to respond to current market trends and demand changes from society

Capital allocation

Strong capex level aligned with strategy, leading to stable RAB

1. Transemel and Electrogas | 2. REE and Cahora Bassa share

23

Steady regulatory framework with actions taken to mitigate effect of current macroeconomic context

Stable regulation complemented with incentive mechanisms¹

Adequate regulatory period for electricity and natural gas, during which relevant parameters' calculation remain constant

Suitable efficiency targets and incentives mechanism¹ to promote operational performance and assets' life extension

Given current macroeconomic context of historically low yields, REN is taking action to manage the consequent effect on financial results through capex expansion, focus on efficiency and evolution of portfolio mix

REN able to preserve solid performance in EBITDA and net profit

Adjusted EBITDA, M€

1. EBITDA and net profit adjusted for non-recurring impacts from incentives and taxation

Our goals remain the same, translating into a prudent financial strategy…

Optimize cost of debt

Protect net profit

Credit rating Strictly committed to investment grade

Liquidity

Funding needs fully covered for the next >24 months

Interest and exchange rate risk

Use fixed and floating mix to align duration with regulatory periods Exchange rate risk from Chilean operation covered

Green funding

100% new bond funding to be green

… and resulting in robust debt management

REN has maintained a clear dividend policy

Predictable

Dividend fixed at 0.171€ since 2013

Attractive

Avg. dividend yield since 2015 above reference peers' average and 10Y gov. bond yields

Sustainable

Cash flow dividend payout of ~30% since 2015 and below reference peers' average

Net income payout increasingly pressured by CESE

In order to manage risk and remove uncertainty, REN has revised its dividend policy over 2021-24

Revised dividend policy for 2021-24 cycle

net income upsides

29

REN has a strong equity story, complemented with clear KPIs commitment for 2021-24

Growth in electricity sector and

Stable regulatory framework

Prudent funding strategy committed to investment grade

Attractive shareholder return

in organic investment weight 3.9-4.0 B€ Assets 200-235 M€ Capex

450-470 M€ EBITDA

Net debt	FFO / Net debt
2.7-2.5 B€	12-14% beyond 2022
Net profit	DPS floor

90-105 M€

0.154€

Closing remarks

REN will commit to ambitious new targets – carbon neutrality by 2040 (and -50% CO² emissions by 2030), increased diversity, implementation of ESG incentivization and pledge to 100% green financing

REN will double down on electrification and lead the decarbonization of the grids through H² enablement, while strengthening resilience and digitalization

REN will deliver solid capex growth, leading to a steady RAB, while maintaining commitment to investment grade and sustainable investor returns

REN will remain at the core of energy transition reinforcing its ESG standards and delivering growth, superior operational performance and solid financials

Muito obrigado

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