REN-Redes Energeticas Nacionais

Investor Presentation • Mar 19, 2021

Results Report

th March 2021

AGENDA

1. Overview of the period

2. Business performance

2018-21 Strategic Plan execution 3. & Outlook

1. Overview of the period

2020 RESULTS 3

KEY MESSAGES 2020

EBITDA reached €470.2M, a decrease of 3.3% (-€16.1M) YoY attributed to (1) lower RAB remuneration (-€23.8M), due to declining rates from lower sovereign bond yields coupled with new parameters in the gas regulatory framework and a smaller RAB; (2) a reduced OPEX contribution, and (3) a one-off improvement in the Economic efficiency of investments (RE I) incentive of +€7M.

The performance from the international segment benefited EBITDA by €5.0M, namely the consolidation of Transemel.

Net Profit amounted to €109.2M (€9.7M lower than in 2019), with a positive contribution from Financial results (increase of €5.7M to -€46.8M), mostly due to a lower cost of debt (from 2.1% to 1.8%), an increase in dividends received and a lower income tax (with a reduction of €9.9M to €44.9M and with the benefit of a tax credit of €5.6M. All of which helped bring net debt down.

RE N continued to be penalized by the special levy, which rose €3.7M due to the inclusion of Portgás and stood at €28.1M. Since its introduction in 2014 RE N has deposited more than €180M into the State's coffers.

COVID-19 added an additional layer of challenge to RE N's operations but other than for a short period of time between mid-March and early May, when only emergency and critical activities could be performed the whole company was able to securely adapt and deliver in all fronts. The result was visible as quality of service remained at the usual very high levels.

After extensive work during the fourth quarter of 2020, last February, RE N was licensed to issue "green bonds" rated as B ("Prime") by the International Shareholder Services ESG (ISS-ESG).

Service quality remained high, with 0.03min of electricity interruption time (0.72min in 2019) and natural gas combined availability rate at approximately 100%, the same rate as in 2019

Renewable energy sources reached 59% of the total supply ( 51% in 2019). Consumption of electricity and natural gas decreased by 3.0% and 1.6% respectively, mainly due to COVID-19.

SECTOR OVERVIEW

In 2020 the Energy Transition was at the center of the Portuguese Government agenda

COVID-19

Main financial impacts arising from the COVID-19 pandemic were felt in investment execution

Main effects of COVID-19

	Description
--	-------------

1	Delay in transfers to RAB	To be Due to that led to a the coronavirus pandemic ✔ recovered temporary suspension of works in March and April, in 2021 some projects were not concluded in 2020
2	Additional costs	There were additional costs to enable the workforce to perform their jobs both remotely and on location, due to the extra need of precautions, health and safety including personal protection equipment, as well as the adaptation of the Company's sites to the pandemic challenges. REN also made significant contributions participating in community efforts.
3	Increase in tariff deviations	as a result of the reduction in Higher tariff deviations electricity consumption. By the end of 2020, the tariff deviations consumption-related increased by 33.5M versus year-end 2019

Impact on REN's financial performance is overall neutral in EBITDA with a slight decrease in Net Debt and a delay in transfers to RAB

2. Business performance

BUSINESS HIGHLIGHTS

Superior quality of service in Portugal, notwithstanding a higher share of renewables and some deterioration in demand

Electricity	Consumption	Energy transmission losses	Line length
	1.5 TWh 48.8TWh (3.0%)	1.8% 0.1pp	34km 9,036km (0.4%)
	2019: 50.3TWh	2019: 1.7%	2019: 9,002km
	Renewables in consumption supply	Average interruption time
	58.6% 7.5pp	0.69min 0.03min (95.7%)
	2019: 51.1%	2019: 0.72min
Gas	Consumption	Combined availability rate	Line length
Transmission	1.1TWh 66.9TWh (1.6%)	100% 0.0pp	0km 1,375km (0.0%)
	2019: 67.9TWh	2019: 100%	2019: 1,375km
Gas Distribution	Gas distributed	Emergency situations with response time up to 60min	Line length
	0.1TWh 7.3TWh (0.9%)	98.7% 0.1pp	192km 5,897km (3.4%)

FINANCIAL HIGHLIGHTS

Net profit decreased despite the improvement in Financial results and due to the decline in EBITDA

EBITDA contribution by

Decline in EBITDA mostly due to lower remuneration rates and greater OPEX costs, partially offset by REN's international exposure

EBITDA evolution breakdown €M

1 Includes Apolo 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 | 5 REI: Economic efficiency of investments

2020 RESULTS 10

Return on RAB negatively influenced by the downward trend in the Portuguese bond yields

4.9

4.6

4.6

4.8

5.7

Transfers to RAB and CAPEX dropped YoY, driven by COVID-19 hurdles

Gas Distribution Electricity Gas Transportation 151.7 12.7 26.3 79.6 190.6 €-111.1M (-58.3%) Transfers to RAB €M

2020 12.6 45.1 21.8 2019

Capex €M

Key highlights

Electricity

Main investment projects:

• New 400 kV Castelo Branco-Fundão line, where a new 400/200 kV substation is also under construction
• New connection between the Ponte de Lima area and the Vila Nova de Famalicão substation
• New Ribeira de Pena substation and power line Feira-Ribeira de Pena

Gas Transmission

• Main investment projects concluded:
  • Carriço Storage: the first phase of the Water Firefighting System upgrade
  • Pipeline Network and Sines Terminal: replacement and upgrade of equipment and systems at the end-of-life

Gas Distribution

• Investments for network expansion and densification, mostly for B2C, with new prospects for B2B investments continuing to be monitored, alongside with firm contracts
• Network decarbonization process on the move

Decrease in the RAB over all asset categories

Average RAB evolution €M

1. Business performance

DOMESTIC BUSINESS

RAB remuneration decreased across all businesses, but especially in the gas business, where RoR fell 80bps YoY, with new regulatory parameters

Return on RAB evolution breakdown €M

Electricity

61.76

47.12 Return on

With premium

-3.07

Without premium

-5.92

-0.04

99.85

108.88

€-9.03M (-8.3%)

43.27

56.58

Return on RAB 2020

Change in asset mix

Asset base evolution

RAB 2019

RoR evolution

Decline in Return on RAB justified by a lower RoR of 4.56% (-0.80bps), and a smaller asset base (by €43.0M to a total of €945.5M)

-8.30

-1.96

N/A

43.12

53.38

€-10.26M (-19.2%)

Return on RAB reduction attributed to a lower rate of return (from 5.70% to 4.76%) and a smaller asset base (by €1.4M to a total of €471.6M)

Gas Transmission Gas Distribution

OPEX increased by 6.7% YoY, mainly in pass-through costs, with core OPEX rising only 3.4%

Core OPEX¹ evolution €M

Key highlights

Core external costs

• Maintenance costs (+€2.9M), mostly related to forest clearing (+€3.6M), as a result of more vegetation area managed (9,587ha in 2020 vs 7,873ha in 2019);
• COVID-19 related costs²(+€1.1M)
• Lower electricity costs in the LNG Terminal (-€1.3M)
• Other (e.g., travel & transport, IT, 3 rd party services)

Personnel costs

• Reflects essentially the increase in wages, partially offset by lower overtime costs and travel allowances

Non-core costs

• Pass-through costs (costs accepted in the tariff) increased by €5.2M, of which €3.7M correspond to costs with cross -border and system services costs and €0.3M to costs with NG transportation

DOMESTIC BUSINESS: ELECTRICITY

Decline in Electricity EBITDA, mostly justified with lower return on assets and greater OPEX

Capex		Transfers to RAB		Average RAB2		Base RoR3		Core OPEX
€126.4M	€14.5M (10.3%)	€45.1M	€106.6M (70.3%)	€2,217.9M	€73.9M (3.2%)	4.6%	0.3pp	€50.2M	€8.0M (19.0%)
2019: €140.9M		2019: €151.7M		2019: €2,291.8M		2019: 4.9%		2019: €42.2M

1 Of which €7.0M are related to the Investment Economical Rationalization incentive | 2. Includes €941.5M of Electricity without premium (€964.9M for 2019) and €1,058.5M of Electricity with premium (€1,096.5M for 2019); Includes Lands (€217.9M in 2020 and €230.4M in 2019) | 3. RoR for Electricity with premium was 5.3% in 2020 (5.6% in 2019), and for other Lands 0.3% in 2020 (0.3% 2019)

DOMESTIC BUSINESS: GAS TRANSMISSION

Gas Transmission EBITDA reduction mainly explained by lower asset remuneration

EBITDA breakdown €M

DOMESTIC BUSINESS: GAS DISTRIBUTION

Relatively stable Gas Distribution's EBITDA, with changes in remuneration rates partially offset by higher recovery of amortization

Capex		Transfers to RAB		Average RAB		RoR		Core OPEX
€22.6M	€4.3M (16.0%)	€21.8M	€4.5M (17.0%)	€471.6M	€1.4M (0.3%)	4.8%	0.9pp	€8.9M	€1.6M (15.3%)
2019: €26.9M		2019: €26.3M		2019: €473.0M		2019: 5.7%		2019: €10.5M

INTERNATIONAL BUSINESS

Solid performance from the Chilean businesses

1 Consolidation of Transemel from 1 October 2019 | 2 Positivelly affected by exchange rates effects

(3.0%)

(38.1%)

Positive development from items below EBITDA, with better financial results, as the cost of debt decreased and with lower tax contributions

previous years

Net profit evolution breakdown €M Key highlights

• The Positive effect of €5.7M from Financial Results as a consequence of better financial conditions and higher dividends from associates (Δ€0.4M)
• The extraordinary charge by CESE penalized Net Profit (Δ€-3.7M), now also applicable to the gas distribution business
• A €5.6M tax recovery from previous years contributed positively to the decrease of the effective tax rate
• Impact of €4.1M resulting from the acquisition of 100% of Transemel in October 2019

Net Debt improvement due to a higher operating cash flow overtaking the outflows of investment and financing activities

1 Calculated as Net Debt plus Cash, bank deposits and derivative financial instruments (€81M), excluding effects of hedging on yen denominated debt, accrued interest and bank overdrafts | 2 Includes loans (8.9%), Transemel's debt (0.3%) and leasing (0.2%)

SHARE PRICE & SHAREHOLDER RETURN

Share price evolution mostly in line with the performance of PSI-20

Average Price	target
€2.78	€0.01 (0.4%)
2019: €2.77
Upside/Downside	(+/-)
17.5%	15.7pp
2019: 1.8%
Buy recommendations
60.0%	35.0pp
2019: 25.0%
Hold recommendations
40.0%	18.3pp
2019: 58.3%

3. 2018 -21 Strategic Plan execution & Outlook

STRATEGIC PLAN EXECUTION

Despite a challenging context, in 2020 REN was able to deliver according to the 2018-21 strategic guidelines

Strategic guidelines 2018-21

Key achievements during 2020

Operational excellence and core business consolidation

• Maintenance of high service quality levels, with an average of 0.26 min of electricity interruption time and 99.83% natural gas combined availability rate during 2018-20
• Ongoing support to the execution of the energy transition targets, particularly, the promotion of the connection of additional renewable energy generation sources to the grid

Disciplined growth

Focus on Transemel's integration, a Chilean transmission company acquired in 2019 for US\$ 168.6M, while ensuring the development and conclusion of important expansion projects (e.g., Parinacota substation 220kV and Duqueco substation 220kV)

Solid financials

• Maintenance of credit metrics consistent with an investment grade credit rating in all three major rating agencies – Moody's, Fitch and S&P
• Delivery on all business plan targets, surpassing domestic capex targets for two consecutive years

COVID-19 with limited impact on REN's overall financial performance, despite some delays in investment execution (expected to be recovered during 2021)

STRATEGIC PLAN TARGETS

REN has successfully met the 2018-21 Business Plan targets

At least, average results during the period met the BP targets

OUTLOOK

Outlook for 2021 focused on COVID-19 recovery and Transemel integration, with more clarity to be provided by the new business plan

Domestic business

• Delays on capex and transfers to RAB due to the COVID-19 pandemic expected to be reversed in 2021
• Electricity tariff deviations stock increase to €33.5M driven by the pandemic expected to be recovered by 2022 as per ERSE's tariff code

International footprint

In the short term, focus on Transemel's integration process

Interests and taxes

• Financial costs expected to remain relatively stable in the following year
• Conclusion of certification process for green bonds, providing new financing opportunities

Strategy

Strategic plan revision for 2021-24 to be announced in the 2nd quarter

4. Shaping a sustainable future

ESG INITIATIVES

Several initiatives developed to address UN's Sustainable Development Goals, some already with major achievements

UN's Sustainable Development Goals

Initiatives/ achievements

• Gender Equality | 27% of women in 1st and 2nd line management positions
  • Training | 25,325 hours of training for employees (36.44 h/employee)
  • Bloomberg Gender Equality Index | REN included in 2021
• "Reforestation program" | Over 1M indigenous trees planted since 2010
• UN Business Ambition -1.5º | REN was one of the first companies in Portugal to sign this commitment

Community

protection

Environmental

• AGIR Award | >6,500 people directly benefited from awarded projects since 2014 (editions dedicated to fighting poverty, unemployment and social exclusion)
• REN Award | 28 applications received in the 25th edition of the award distinguishing the best energy Master and Doctoral theses in Portugal
• SHARE Program | 555h of corporate volunteering initiatives

Governance and ethics

5	17 FORTNE
0	8

• CEO Guide to Human Rights BCSD Portugal | Agreement in defense of human rights and improving people's living conditions
• Excellent Performance | REN code of conduct | APEE awards

Average¹ BBB/ [AAA+, CCC] International ESG scores Top quartile¹ B / [A+, D-]

Strong 60.1/ [0-100]

ENERGY TRANSITION includes gas

Hydrogen-ready policy sets the gas network as the future national green gas backbone as set in the 62/2020 Decree-Law

Kick started with National Hydrogen Strategy

IPCEI¹ call of interest issued by the Portuguese Government selected 32 candidate projects out of 72 for a possible application. These projects cover multiple industrial areas for hydrogen in the energy transition covering:

• The value chain renewable energy production and storage, hydrogen production, distribution, transport, storage, commercialization and export built on Portuguese solar competitive advantage, and new business models.
• Production of value-added equipment for hydrogen projects cost efficiency in cooperation with multiple international companies with focus on Portugal.

A collaborative laboratory is under development to support production technologies to allow gains to scale along the hydrogen value chain.

REN is developing and adapting its own infrastructure while providing technical cooperation to projects for network hydrogen injection. Pressure is building up as the Portuguese Government has launched a call for POSEUR-01- 2020-19 with 40 M€ budget for renewables gases production support ending in April and schedule to start production until 2023.

REN actions

+20 companies, institutes and universities already involved in Hylab an hydrogen R&D cluster with labs in Sines Lisbon and Porto with RE N as a founding member.

Innovation fund application

was delivered to develop and refurbish the existing high pressure network and equipment for hydrogen capability together with and underground storage project to deliver development.

Cooperation with the major national projects as infrastructure facilitator.

5. Closing remarks

CLOSING REMARKS

Core businesses remained resilient despite COVID-19, while gains deprivation came attached to regulatory changes and CESE increments

This past year was unarguably peculiar, the consequences caused by the pandemic both on the economy and, above all, on public health were devastating. Still, REN ensured the safety of its employees whilst it helped the community through donations. Regardless of the challenges, REN's success is visible in the high-quality services provided and commitment to its part in society.

EBITDA was positively influenced by international exposure. Namely, the inclusion of Transemel and solid performance from Electrogas. The focus and discipline that define REN remained preserved and a lower cost of debt was attained. However, its performance has deteriorated, not only due to a lower return on assets from gas, imposed by the regulatory framework of 2020-23, as well as the CESE contribution, which led the company to pay a total of €180M, in the last 7 years.

The certification to issue "Green Bonds" was concluded and REN will be able to tap the market in the second quarter of 2021. This is an important step in driving forward REN' sustainable development goals, keeping its rating and a very conservative funding structure.

The Board of Directors will propose, at the General Shareholders' Meeting on April 23, the payment of a dividend of 17.1 cents per share, in line with previous years and with REN's current dividend policy.

On May 14, REN will host its Capital Markets Day, where the Board of Directors will present the new business plan 2021-24. In a scenario in which the energy transition is increasingly important, REN will maintain its focus delivering a stellar quality of service as well as address the challenges coming from the changing energy environment.

Appendix

2020 RESULTS 33

APPENDIX Results breakdown

2020/2019
€M	2020	2019	Δ %	Δ Abs.
1) TOTAL REVENUES	758.5	787.0	-3.6%	-28.5
Revenues from assets	431.4	445.1	-3.1%	-13.7
Return on RAB	165.4	189.2	-12.6%	-23.8
Electricity	99.9	108.9	-8.3%	-9.0
Natural gas	43.1	53.4	-19.2%	-10.3
Portgás	22.4	27.0	-16.7%	-4.5
Lease revenues from hydro protection zone	0.7	0.7	-1.2%	0.0
Economic efficiency of investments	32.0	25.0	28.0%	7.0
Recovery of amortizations (net from subsidies)	214.3	212.3	0.9%	2.0
Subsidies amortization	19.0	17.9	6.2%	1.1
Revenues from Transemel	10.1	2.7	271.1%	7.4
Revenues of OPEX	130.1	130.0	0.1%	0.1
Other revenues	26.0	25.2	3.1%	0.8
Construction revenues (IFRIC 12)	160.9	183.9	-12.6%	-23.1
2) OPEX	145.8	134.4	8.5%	11.4
Personnel costs	55.6	55.3	0.6%	0.3
External supplies and services	68.5	60.0	14.3%	8.5
Other operational costs	21.6	19.1	12.9%	2.5
3) Construction costs (IFRIC 12)	142.0	164.6	-13.7%	-22.6
4) Depreciation and amortization	241.2	235.6	2.4%	5.5
5) Other	0.5	1.7	-70.5%	-1.2
6) EBIT	229.0	250.6	-8.6%	-21.6
7) Depreciation and amortization	241.2	235.6	2.4%	5.5
8) EBITDA	470.2	486.2	-3.3%	-16.1
9) Depreciation and amortization	241.2	235.6	2.4%	5.5
10) Financial result	-46.8	-52.5	-10.9%	5.7
11) Income tax expense	44.9	54.8	-18.1%	-9.9
12) Extraordinary contribution on energy sector	28.1	24.4	15.1%	3.7
13) NET PROFIT	109.2	118.9	-8.1%	-9.7
14) Non recurrent items	22.5	25.9	-13.2%	-3.4
15) RECURRENT NET PROFIT	131.7	144.8	-9.0%	-13.1

NON RE CURRE NT ITE MS: 2020: i) Extraordinary energy sector levy, as established in the 2020 State budget law (€28.1M); ii) recovery of taxes from previous years (€5.6M) 2019: i) Extraordinary energy sector levy, as established in the 2019 State budget law (€24.4M)

APPENDIX

Other operational revenues and costs breakdown

			2020/2019
€M	2020	2019	Δ %	Δ Abs.
Other revenues	26.0	25.2	3.1%	0.8
Allowed incentives	1.3	1.3	-3.3%	0.0
Interest on tariff deviation	0.5	0.5	-7.8%	0.0
Telecommunication sales and services rendered	6.7	6.6	2.0%	0.1
Consultancy services and other services provided	2.9	2.1	35.9%	0.8
Other revenues	14.6	14.6	-0.2%	0.0
Other costs	21.6	19.1	12.9%	2.5
Costs with ERSE	11.5	11.1	3.8%	0.4
Other	10.1	8.1	25.3%	2.1

APPENDIX EBITDA breakdown (Electricity)

			2020/2019
€M	2020	2019	Δ %	Δ Abs.
1) REVENUES	495.8	503.5	-1.5%	-7.7
Revenues from assets	288.9	289.3	-0.2%	-0.4
Return on RAB	99.9	108.9	-8.3%	-9.0
Hydro land remuneration	0.0	0.0		0.0
Lease revenues from hydro protection zone	0.7	0.7	-1.2%	0.0
Economic efficiency of investments	32.0	25.0	28.0%	7.0
Recovery of amortizations (net from subsidies)	143.2	142.8	0.3%	0.5
Subsidies amortization	13.1	12.0	9.2%	1.1
Revenues of OPEX	72.2	68.6	5.2%	3.6
Other revenues	8.3	4.7	78.8%	3.7
Interest on tariff deviation	0.4	0.1	173.7%	0.3
Other	7.9	4.5	75.7%	3.4
Construction revenues (IFRIC 12)	126.4	140.9	-10.3%	-14.5
2) OPEX	68.3	55.4	23.1%	12.8
Personnel costs	17.1	17.8	-3.7%	-0.7
External supplies and services	40.0	29.2	37.2%	10.8
Other operational costs	11.1	8.5	31.2%	2.6
3) Construction costs (IFRIC 12)	112.2	126.5	-11.3%	-14.3
4) Depreciation and amortization	155.7	154.3	0.9%	1.4
5) Other	0.2	1.2	-82.1%	-1.0
6) EBIT (1-2-3-4-5)	159.4	166.0	-4.0%	-6.6
7) Depreciation and amortization	155.7	154.3	0.9%	1.4
8) EBITDA (6+7)	315.1	320.3	-1.6%	-5.2

APPENDIX EBITDA breakdown (Natural gas transmission)

€M	2020	2019	Δ %	Δ Abs.
1) REVENUES	158.9	175.0	-9.2%	-16.1
Revenues from assets	104.5	114.9	-9.0%	-10.4
Return on RAB	43.1	53.4	-19.2%	-10.3
Recovery of amortizations (net from subsidies)	55.5	55.6	-0.2%	-0.1
Subsidies amortization	5.8	5.8	-0.1%	0.0
Revenues of OPEX	40.9	44.3	-7.5%	-3.3
Other revenues	1.6	-0.3	-644.3%	1.9
Interest on tariff deviation	-0.4	-0.3	23.5%	-0.1
Consultancy services and other services provided	0.2	0.2	-14.5%	0.0
Other	1.8	-0.2	-857.9%	2.0
(IFRIC 12) Construction revenues	11.9	16.2	-26.7%	-4.3
2) OPEX	28.9	30.0	-3.5%	-1.1
Personnel costs	8.2	7.9	3.9%	0.3
External supplies and services	15.4	17.0	-9.1%	-1.5
Other operational costs	5.3	5.1	3.6%	0.2
3) Construction costs (IFRIC 12)	9.7	14.0	-30.6%	-4.3
4) Depreciation and amortization	60.7	60.8	-0.2%	-0.1
5) Other	-0.1	0.1	-207.0%	-0.1
6) EBIT	59.6	70.2	-15.0%	-10.5
7) Depreciation and amortization	60.7	60.8	-0.2%	-0.1
8) EBITDA	120.3	130.9	-8.1%	-10.7

A negative revenue is consistent with a negative tariff deviation

APPENDIX EBITDA breakdown (Portgás)

			2020/2019
€M	2020 2019		Δ %	Δ Abs.
1) REVENUES	77.1	84.9	-9.3%	-7.9
Revenues from assets	38.0	40.9	-7.1%	-2.9
Return on RAB	22.4	27.0	-16.7%	-4.5
Recovery of amortizations (net from subsidies)	15.5	13.9	11.5%	1.6
Subsidies amortization	0.1	0.1	25.4%	0.0
Revenues of OPEX	16.9	17.1	-0.9%	-0.2
Other revenues	-0.5	0.1	-943.0%	-0.5
Interest on tariff deviation	0.0	0.0	-85.3%	0.0
Adjustments previous years	-1.0	-0.2	404.6%	-0.8
Other services provided	0.2	0.2	-0.9%	0.0
Other	0.4	0.1	309.4%	0.3
Construction revenues (IFRIC 12)	22.6	26.9	-16.0%	-4.3
2) OPEX	13.0	14.4	-9.7%	-1.4
Personnel costs	4.2	4.1	1.1%	0.0
External supplies and services	3.9	5.2	-24.7%	-1.3
Other operational costs	4.9	5.0	-2.9%	-0.1
3) Construction costs (IFRIC 12)	20.1	24.1	-16.7%	-4.0
4) Depreciation and amortization	15.8	14.2	11.4%	1.6
5) Other	0.0	0.1	-136.5%	-0.1
6) EBIT	28.2	32.2	-12.3%	-4.0
7) Depreciation and amortization	15.8	14.2	11.4%	1.6
8) EBITDA	44.0	46.4	-5.0%	-2.3

APPENDIX EBITDA breakdown (Transemel)

€M	2020	2019 As If1
1) REVENUES	10.1	2.7
2) OPEX	3.3	0.5
3) Depreciation and amortization	1.5	0.4
4) EBIT	5.3	1.8
5) Depreciation and amortization	1.5	0.4
6) EBITDA	6.8	2.2

APPENDIX EBITDA breakdown (Other¹ )

			2020/2019
€M	2020	2019	Δ %	Δ Abs.
1) TOTAL REVENUES	16.5	20.8	-20.5%	-4.3
Other revenues	16.5	20.8	-20.5%	-4.3
Allowed incentives	1.3	1.3	-3.3%	0.0
Interest on tariff deviation	0.4	0.7	-37.1%	-0.2
Telecommunication sales and services rendered	6.7	6.6	2.0%	0.1
Consultancy services and other services provided	0.6	1.5	-60.0%	-0.9
Other	7.5	10.7	-30.0%	-3.2
2) OPEX	32.2	34.0	-5.4%	-1.8
Personnel costs	25.8	25.4	1.5%	0.4
External supplies and services	6.1	8.1	-24.7%	-2.0
Other operational costs	0.4	0.6	-36.3%	-0.2
3) Depreciation and amortization	7.2	5.4	32.5%	1.8
4) Other	0.4	0.4	0.3%	0.0
5) EBIT	-23.5	-19.5	-20.2%	-4.0	Includes the negative impacts of the PPAs2
6) Depreciation and amortization	7.4	5.9	25.6%	1.5	of Portgás (€5.2M in 2020, same of 2019)
7) EBITDA	-16.0	-13.6	17.9%	-2.4	and Transemel (€1.7M in 2020, +€1,2M YoY)

APPENDIX Capex and RAB

			2020/2019
€M	2020	2019	Δ %	Δ Abs.
CAPEX	173.3	188.6	-8.1%	-15.3
Electricity	126.4	140.9	-10.3%	-14.5
Natural gasT	11.9	16.2	-26.7%	-4.3
Natural gasD	22.6	26.9	-16.0%	-4.3
Transemel	12.1	4.5	167.6%	7.6
Other	0.3	0.2	102.5%	0.2	Transfers to RAB include
Transfers to RAB	79.6	190.6	-58.3%	-111.1
Electricity	45.1	151.7	-70.3%	-106.6	direct acquisitions RAB related
Natural gasT	12.6	12.7	-0.2%	0.0
Natural gasD	21.8	26.3	-17.0%	-4.5
Average RAB	3,635.0	3,753.3	-3.2%	-118.3
Electricity	2,000.0	2,061.4	-3.0%	-61.5
With premium	1,058.5	1,096.5	-3.5%	-38.0
Without premium	941.5	964.9	-2.4%	-23.4
Land	217.9	230.4	-5.4%	-12.5
Natural gasT	945.5	988.5	-4.3%	-43.0
Natural gasD	471.6	473.0	-0.3%	-1.4
RAB e.o.p.	3,564.2	3,738.8	-4.7%	-174.6
Electricity	1,954.9	2,069.9	-5.6%	-115.0
With premium	1,033.4	1,083.6	-4.6%	-50.2
Without premium	921.5	986.3	-6.6%	-64.8
Land	211.7	224.1	-5.5%	-12.3
Natural gasT	924.0	967.0	-4.4%	-43.0
Natural gasD	473.5	477.8	-0.9%	-4.3

APPENDIX RAB

			2020/2019
€M	2020	2019	Δ %	Δ Abs.
RAB's remuneration	166.1	189.9	-12.5%	-23.8
Electricity	99.9	108.9	-8.3%	-9.0
With premium	56.6	61.8	-8.4%	-5.2
Without premium	43.3	47.1	-8.2%	-3.8
Land	0.7	0.7	-1.2%	0.0
Natural gasT	43.1	53.4	-19.2%	-10.3
Natural gasD	22.4	27.0	-16.7%	-4.5
RoR's RAB	4.6%	5.1%		-0.5p.p.
Electricity	5.0%	5.3%		-0.3p.p.
With premium	5.3%	5.6%		-0.3p.p.
Without premium	4.6%	4.9%		-0.3p.p.
Land	0.3%	0.3%		0.0p.p.
Natural gasT	4.6%	5.4%		-0.8p.p.
Natural gasD	4.8%	5.7%		-0.9p.p.

APPENDIX Tariff deviations

€M	2020	2019
Electricity	75.1	38.7
Trading	156.0	138.1
Natural gasT	-79.1	-57.8
Natural gasD	-2.9	-4.4
Total	149.0	114.6

! 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

	Current	2020
0.0	1,442.9	1,442.9
96.6	574.9	671.5
450.0	250.0	700.0
0.3	0.0	0.3
1.6	3.2	4.8
548.5	2,271.0	2,819.5
22.4	0.0	22.4
-8.3	-10.1	-18.5
562.6	2,260.9	2,823.4
	Current	Non

• In 2020, with the coronavirus pandemic, the global economy suffered a deep contraction. However, REN maintained its financial strength and continued to present high liquidity and a low average cost of debt;
• RE N's total liquidity reached €886M, including credit facilities, loans, non-used commercial paper programmes, cash and bank deposits;
• Bank borrowings were mainly represented by EIB loans (€480.8M);
• The Group had credit lines negotiated and not used in the amount of €80.0M, maturing up to one year, which are automatically renewed periodically (if they are not resigned in the contractually specified period for that purpose);
• RE N also had nine active commercial paper programmes in the amount of €2,000.0M, of which €1,300.0M were available for use;
• RE N'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 1.81% at the end of December.

APPENDIX Debt and debt metrics

	2020	2019
Net Debt (€M)	2,741.9	2,826.0
Average cost	1.8%	2.1%
Average maturity (years)	3.4	3.6
Net Debt / EBITDA	5.8x	5.7x
DEBT BREAKDOWN
Funding sources
Bond issues	50.8%	60.5%
EIB	17.2%	15.5%
Commercial paper	25.0%	16.3%
Other	7.0%	7.8%
TYPE
Float	38%	42%
Fixed	62%	58%

RATING	Long term	Short term	Outlook	Date
Moody's	Baa3	-	Stable	05/06/2020
Standard & Poor's	BBB	A-2	Stable	29/10/2020
Fitch	BBB	F3	Negative	05/06/2020

CMVM: MAIN PRE SS RE LE ASE S (from January 2020)

• Jan-09: Qualified shareholding from Great-West Lifeco
• Feb-12: Summary of annual information disclosed in 2019
• Feb-26: Qualified shareholding from The Capital Group Companies
• Feb-27: Qualified shareholding from The Capital Group Companies
• Mar-25: 2019 Consolidated results
• Apr-9: Notice to convene the annual general shareholders meeting and deliberation proposals
• Apr-9: Accounts reporting documents referring to the financial year ended on 31st December 2019 item 1 of the agenda for the general shareholders meeting
• Apr-9: Corporate Governance report included in the 2019 Report and Accounts
• May-05: First 3 months 2020 consolidated results
• May-05: Resolutions approved at the General Shareholders meeting
• May-12: Payment of dividends relating to the financial year of 2019
• May-13: Extraordinary extension of the regulation period of the electricity sector until 2021
• Jun-05: Fitch affirms RE N's rating at 'BBB' and revises outlook to negative
• Jul-29: First half 2020 consolidated results
• Aug-10, Aug-13, Sep-01, Sep-02, Sep-07, Sep-11, Sep-21 , Sep-21 , Nov-02 , Nov-11: Qualified shareholding from Norges Bank
• Nov-13: First 9 months 2020 consolidated results

Consolidated Financial Statements

CONSOLIDATED FINANCIAL STATEMENTS

Financial position

€M	2020	2019	€M	2020	2019
ASSETS			EQUITY
Non-current assets	4.736.611	4.909.964	Shareholders' equity:
Property, plant and equipment	127.119	125.649	Share capital	667.191	667.191
Intangible assets	4.130.562	4.214.916	Own shares	-10.728	-10.728
Goodwill	5.367	5.969	Share premium	116.809	116.809
Investments in associates and joint ventures	158.845	172.278	Reserves	289.887	316.681
Investments in equity instruments at fair value through other comprehensive income	150.850	155.676	Retained earnings	240.853	242.853
Derivative financial instruments	25.685	27.229	Other changes in equity	-5.561	-5.561
Other financial assets	102	71	Net profit for the period	109.249	118.899
Trade and other receivables	45.507	114.509	TOTAL EQUITY	1.407.700	1.446.144
Deferred tax assets	92.575	93.666
			LIABILITIES
Current assets	512.048	395.341	Non-current liabilities	2.915.960	2.731.269
Inventories	2.450	3.919	Borrowings	2.260.875	2.112.296
Trade and other receivables	448.099	353.725	Liability for retirement benefits and others	100.507	103.309
Current income tax recoverable	0	14.921	Derivative financial instruments	29.215	24.848
Derivative financial instruments	0	1.732	Provisions	8.508	8.416
Other financial assets	0	0	Trade and other payables	371.886	340.627
Cash and cash equivalents	61.499	21.044	Deferred tax liabilities	144.969	141.774
			Current liabilities	924.999	1.127.891
TOTAL ASSETS	5.248.658	5.305.305	Borrowings	562.557	757.158
			Trade and other payables	353.800	370.733
			Income tax payable	8.641	0

TOTAL LIABILITIES 3.840.958 3.859.160

TOTAL EQUITY AND LIABILITIES 5.248.658 5.305.305

CONSOLIDATED FINANCIAL STATEMENTS

Profit and loss

€M	2020	2019
Sales	64	79
Services rendered	563,232	565,707
Revenue from construction of concession assets	160,856	183,944
Gains / (losses) from associates and joint ventures	7,498	8,984
Operating grants	0	0
Other operating income	26,683	28,049
Operating income	758,333	786,763
Cost of goods sold	-719	-904
Cost with construction of concession assets	-142,036	-164,636
External supplies and services	-69,022	-60,500
Personnel costs	-55,529	-54,745
Depreciation and amortizations	-241,165	-235,626
Provisions	-185	310
Impairments	87	-2,050
Other expenses	-20,895	-18,240
Operating costs	-529,464	-536,391
Operating results	228,869	250,372
Financial costs	-59,637	-65,438
Financial income	5,651	6,254
Investment income - dividends	7,318	6,905
Financial results	-46,667	-52,278
Profit before income tax and ESEC	182,202	198,094
Income tax expense	-44,858	-54,795
Energy sector extraordinary contribution (ESEC)	-28,095	-24,400
Net profit for the year	109,249	118,899
Attributable to:
Equity holders of the Company	109,249	118,899
Non-controlled interest	0	0
Consolidated profit for the year	109,249	118,899
Earnings per share (expressed in euro per share)	0.16	0.18

CONSOLIDATED FINANCIAL STATEMENTS

Cash flow

€M	2020	2019
Cash flow from operating activities
Cash receipts from customers	1,838,089	2,425,093
Cash paid to suppliers	-1,323,307	-1,909,369
Cash paid to employees	-78,820	-74,296
Income tax received/ paid	-11,456	-16,889
Other receipts/ (payments) relating to operating activities	-48,242	-80,372
Net cash flows from operating activities (1)	376,264	344,166
Cash flow from investing activities
Receipts related to:
Investment associates	220	292
Property, plant and equipment	0	0
Other financial assets	0	0
Investment grants	34,747	7,177
Interests and other similar income	0	30
Dividends	15,105	13,970
Payments related to:
Other financial assets	0	0
Financial investments	0	-162,347
Property, plant and equipment	0	0
Intangible assets - Concession assets	-13,985	-5,279
Net cash flow used in investing activities (2)	-156,631	-170,567
Cash flow from financing activities	-120,544	-316,724
Receipts related to:
Borrowings	2,426,000	5,088,550
Capital and supplementary obligations	0	0
Interests and other similar income	0	0
Payments related to:
Borrowings	-2,474,415	-4,956,395
Interests and other similar expense	-53,201	-59,707
Dividends	-113,426	-113,426
Net cash from/ (used in) financing activities (3)	-215,042	-40,978
Net (decrease)/increase in cash and cash equivalents (1)+(2)+(3)	40,677	-13,537
Effect of exchange rates	-29	-190
Cash and cash equivalents at the beginning of the year	20,521	34,096
Changes in the perimeter	0	152
Cash and cash equivalents at the end of the period	61,169	20,521
Detail of cash and cash equivalents
Cash	0	0
Bank overdrafts	-330	-523
Bank deposits	61,499	21,044
	61,169	20,521

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

or contact us:

Ana Fernandes – Head of IR Alexandra Martins Telma Mendes

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