REN-Redes Energeticas Nacionais

Investor Presentation • Nov 10, 2022

Results Report REN 9M22

10th November 2022

AGENDA

1. Overview of the period

1. Overview of the period

KEY MESSAGES 9M22

EBITDA improved 5.1% YoY to €360.9M, mainly driven by Domestic EBITDA performance (+€12.5M) reflecting higher assets and opex remuneration (+€16.4M), slightly offset by greater core opex (+€4.2M), due to higher electricity costs at the LNG Terminal (+€7.9M).

Solid contribution from international business, with an impact of +€5.0M in EBITDA, of which Electrogas represented +€3.5M.

Net Profit increased to €81.4M (an improvement of 19.1% versus 9M21), mostly attributed to an increase in EBIT (+€11.5M) and better Financial Results (+€5.3M), partly offset by higher taxes (+€2.8M) and heavier levy (+€1.0M), due to a higher RAB.

Capex reduction of €15.7M to €126.0M versus €141.7M in 9M21. Transfers to RAB increased €2.8M to €83.2M vs 9M21, matching the rise in gas distribution business (+€2.8M), whilst the positive change in electricity (+€2.7M) was entirely offset by the gas transmission business.

Renewable energy sources (RES) reached 44.4% of total supply (approx.-16.6pp than in 9M21), attached to the renewable energy scarcity, as a result of current environment conditions. Electricity consumption increased 2.9% whilst natural gas fell by 1.2%.

Service quality remains our prime concern, showcased by the progress in electricity transmission losses, the exceptional combined availability rate for both electricity and gas and better response time in emergency situations in Natural Gas Distribution.

SECTOR OVERVIEW

Commitment to hydrogen infrastructure and energy transition

Council Regulation (EU) 2022/1854 +	Measures to reduce energy prices and electricity consumption Electricity demand reduction of 10% for gross electricity and 5% for peak hours between 1-Nov-22 and 31-Mar-23  Cap at 180 €/MWh on market revenues for inframarginals generators1  Solidarity levy for fossil fuel sector 
Resolution of the Council of Ministers n.º 82/2022 +	Preventive measures to secure supply  Initiate a strategic reserve of water in the reservoirs associated with hydroelectric power plants Vouched for reinforcing the underground gas storage with at least 2 additional cavities  Endorsed the installation of the necessary infrastructure for the natural gas transshipment and authorized the LNG  terminal operator to invest the amount of €4.5M for this purpose.
Decree-Law n.º 72/2022	Measures to accelerate renewable projects  Publication of the Decree-Law n.º 72/2022 follows the Decree-Law n.º 30-A/2022 and approves new exceptional measures aimed at ensuring the simplification procedures for generating energy from renewable sources in Portugal. For instance, it establishes a compensation to the municipalities (13.5 k€ per MVA), using the Environmental Fund, to facilitate the promotion of renewables and local development. In addition, it ensures the appropriate conditions for the development of the 2019, 2020 and 2021 Auction projects by extending the experimental period and updating the tariff for inflation from the date of the auction until the date of entry into operation of the PV power plants.
PDIRD 2022 Gas Development Plan 2023-2027	ERSE analyzed the and recommends a revision of these five-year plans that involves a substantial  PDIRD 2022 reduction in the amount of investments proposed – 70% reduction in Business Devolpment and 50% in decarbonization. The DSOs will now have to reflect on the recommendations made by ERSE, DGEG, the TSO and the public, and submit a final proposal. Ultimately, the approval will fall under the responsibility of the Ministry of Environment and Energy Transition.
Energy Transition and renewable gas	The Agenda, submitted for the PRR 2 , was selected for the negotiation phase with IAPMEI 3  "H Green Valley" 2  REN will develop an H pipeline backbone with a capacity to receive the production of up to 2 GW of electrolyzer 2 production in Sines. The financing agreement is expected to be signed in December 2022.  REN has been developing a detailed project plan and is undergoing a review of the market assessment in order to maximize user connections until the end of Q4 2025.

2. Business performance

OPERATIONAL HIGHLIGHTS

Consistent progress in transmissions losses and outstanding combined availability rate

FINANCIAL HIGHLIGHTS

Net Profit increased 19.1% attached to the improvement in EBITDA

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

EBITDA evolution breakdown €M

1 Includes electricity regulatory incentives (in 9M21 €20.2M from the Incentive for the Rationalization of Economic Investments, and in 9M22 €5.6M from the Incentive to the Improvement of the TSO Technical Performance) and excludes Opex remuneration related to pass-through costs | 2. Includes REN Trading incentives, telecommunication sales and services rendered, interest on tariff deviation, consultancy revenues and other services provided, OMIP and Nester results | 3. Includes Apolo SpA and Aerio Chile SpA costs | 4 Excludes the segment "Other", which includes REN SGPS, REN Serviços, REN Telecom, REN Trading, REN PRO and REN Finance B.V. | 5 Refers to Portgás

EBITDA contribution by business segment⁴ %

Bond yields climbed in 2022 leading to an increase in RoR

4.5

4.7

4.5

5.2

4.7

5.4

Transfers to RAB and CAPEX broadly in line with 2022

Transfers to RAB €M

Capex €M

* The photovoltaics panels are 100% subsidized by the promoters that submitted the request to connect the photovoltaic power plants

Key highlights

Electricity

• 150 kV connection between the Fernão Ferro and Trafaria substations (underground cable plus overhead line)
• Remodeling of the 400 kV Palmela-Sines 2 and Palmela-Sines 3 lines, as well as the remodeling of 400 kV Alcochete-Fanhões line
• Replacement of one autotransformer 400/220 kV, 450MVA at Fanhões Substaton
• Installation of the 2nd transformer 400/60 kV, 170 MVA at Estremoz Substation
• 400 kV line bays at Lagoaça and Estremoz Substations to connect photovoltaic solar power plants*

Gas Distribution

• Investments for network expansion and densification mostly for B2C, celebrating 400k clients in September of 2022
• New prospects for B2B investments closely monitored in order to provide client comfort regarding network costs
• Decarbonizing and digitalization plan on the move
• New investment plan 23-27 delivered to DGEG and ERSE (April 2022) under discussion
• Expansion to new industrial zones ongoing

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

Return on RAB evolution breakdown €M

¹ Only General System Management (GGS) activity and assets from Transmission (TEE) activity accepted by the regulator outside the Totex model | 2. Includes the transfer of power line Fernão Ferro-Trafaria 2 from transmission activity, accepted by the regulator outside the Totex model, with average RAB in 9M22 of €22.3M

OPEX was unchanged YoY, while core OPEX grew 5.1%

Core OPEX¹ evolution €M

Key highlights

Core external costs

• Electricity costs in LNG terminal (+€7.9M)
• Forest clearing costs (-€4.0M)

Non-core costs

• Pass-through costs (costs accepted in the tariff) decreased €4.2M of which - €2.3M in costs with cross-border and system services costs, and - €2.9M in costs with ERSE

DOMESTIC BUSINESS: ELECTRICITY

Electricity EBITDA consolidation, attributed to the rise in assets and opex remuneration, albeit a lower regulatory incentive

1 Excludes Opex remuneration related to pass-through costs | 2. Includes electricity regulatory incentives (in 9M21 €20.2M from the Incentive for the Rationalization of Economic Investments, and in 9M22 €5.6M from the Incentive to the Improvement of the TSO Technical Performance) | 3 Includes €1,012.2M of Electricity without premium (€905.0M for 9M21), €1,028.9M of Electricity with premium (€1,020.2M for 9M21) and €196.4M of Lands (€208.7M in 9M21) | 3. RoR for Electricity with premium was 5.4% in 9M22 (5.3% in 9M21), and for other Lands 0.3% in 9M22 (0.3% in 9M21)

9M22 RESULTS 14

DOMESTIC BUSINESS: GAS TRANSMISSION

Gas Transmission EBITDA decrease mostly justified with reduction in opex contribution

DOMESTIC BUSINESS: GAS DISTRIBUTION

Gas Distribution EBITDA rise mostly justified with RAB remuneration and other revenues

EBITDA breakdown €M

INTERNATIONAL BUSINESS

Solid performance from the Chilean businesses

(5.9%)

Positive evolution in Financial Results, partly attributed to the progress in recognized dividends

from 1.60% to 1.69%.

• Effective tax rate reached 40.5%, a 2.5 p.p. decrease relatively to 9M21 (including the levy).
• Increase vs 9M21 reflecting the increase in EBT (+€16.8M).
• Taxes (9M22 and 9M21) benefited from tax recovery of previous years.

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

Net profit evolution breakdown €M Key highlights

• The increase in EBITDA reflecting the positive contribution of both the domestic (+€12.5M) and international businesses (€5.0M)
• The Positive effect of €5.3M from Financial Results as a consequence of better financial conditions, lower net debt and higher dividends from associates
• Higher charge by CESE (Δ€1.0M), reflecting the evolution of the asset base

Net Debt improvement due to solid operating cash flow and extraordinary tariff deviations

1 Calculated as Net Debt plus Cash, bank deposits and derivative financial instruments (€406M), excluding effects of hedging on yen denominated debt, accrued interest and bank overdrafts | 2 Includes loans (1.9%) and leasing (0.2%)

SHARE PRICE & SHAREHOLDER RETURN

REN's share keeps beating the market despite adverse macro conditions

Analyst recommendations¹

Hold recommendations 45.4% 4.6pp 9M21: 50.0%

3. Shaping a sustainable future

HIGHEST ESG STANDARDS

Carbon neutral by 2040 -50% CO2 emissions by 2030 vs. 2019

Climate | Calculation of scope 3 emissions concluded and submission of science-based target (SBT) until the end of 2022

Mobility | Renewables Grid Initiative (RGI) awarded Speed-E the "Good Practice of the Year" in the "Technological Innovation & System Integration" category

Suppliers | Inclusion of scope 3 emissions disclosure requirements in new tenders

>1/3 of women in 1st line management positions by 2030

Human capital management | Adoption of flexibility program based on flexible work schedules, remote work guidelines and other work life balance initiatives

Corporate social responsibility and Sustainability | REN was distinguished at APEE (Portuguese Association of Corporate Ethics) for its CSR and Sustainability strategy

Increasing ESG weight in managers' performance metrics already by 2022

100% of new bond emissions to be green

Stakeholders | Definition and approval of a stakeholder engagement policy

Suppliers | Suppliers code of conduct update to further include sustainability aspects

Anticorruption | Update to REN's Code of Conduct and Integrity Policy in line with the national anticorruption strategy

ACHIEVEMENTS

Calculation of REN's alignment with the EU Taxonomy and progressive adoption of an integrated report, aligned with the new CSRD⁵ and relevant sustainability disclosure frameworks such as GRI⁶ , SASB⁷ and TCFD⁸

HIGHEST ESG STANDARDS

Good performance in international ESG scores but with ambition to do more

Assessment of resilience to long-term ESG risks, REN demonstrated strong efforts on Biodiversity & Land use relative to peers, and on average scoring on Corporate Governance relative to global peers

MSCI ESG Rating Sustainalytics ESG Rating ISS ESG Rating

• Measurement of a company's exposure to industry-specific material ESG risks and how well a company is managing those risks
• REN demonstrated low risk, which is aligned with the ratings received by peers and above sector average

Assessment of sustainability performance, based on specific criteria for each industry. REN ranked very high on transparency level

4. Closing remarks

CLOSING REMARKS

REN remains fully committed to deliver solid results and sustainable returns

EBITDA of €360.9M, an increase of €17.5M YoY (+5.1%), reflecting the increase in domestic and international business performances.

Net Profit grew to €81.4M (+€13.1M), attached to the improvement in EBIT (+€11.5M) and higher Financial Results (+€5.3M), albeit partially offset by higher levy (+€1.0M) and taxes (+€2.8M), as a result of the evolution on regulated asset base.

Net Debt amounted to €1,941.5M (-€436.7M YoY) as the operating cash flow and tariff deviations exceeded the outflows of investment and financing activities.

Transfers to RAB increased slightly +€2.8M to €83.2M and Capex decreased as last year was influenced by the recovery of delayed projects.

REN's shareholder return YTD22 remained positive while the sector registered a negative Total Shareholder Return.

Appendix - Financials

APPENDIX Results breakdown

				9M22 / 9M21
€M	9M22	9M21	2021	Δ %	Δ Abs.
1) TOTAL REVENUES	579.5	577.5	838.4	0.4%	2.0
Revenues from assets	145.9	152.0	203.8	-4.0%	-6.1
Return on RAB	55.5	48.5	65.3	14.5%	7.0
Electricity1	2.2	1.2	1.8	75.8%	0.9
Natural gas	33.9	30.6	41.2	10.8%	3.3
Portgás	19.4	16.6	22.3	16.6%	2.8
Lease revenues from hydro protection zone	0.5	0.5	0.7	-1.3%	0.0
Incentives (IMDT and IREI)2	5.6	20.2	26.9	-72.1%	-14.5
Recovery of amortizations (net from subsidies)	70.7	68.9	92.2	2.6%	1.8
Subsidies amortization	13.6	14.0	18.7	-2.9%	-0.4
Revenues from Transemel	9.8	8.3	12.0	18.7%	1.5
Revenues of TOTEX3	203.6	184.6	250.5	10.3%	19.0
Revenues of OPEX	78.4	79.0	111.3	-0.8%	-0.6
Other revenues	18.9	15.2	23.0	23.8%	3.6
Construction revenues (IFRIC 12)	123.0	138.4	237.9	-11.1%	-15.4
2) OPEX	111.0	110.7	161.1	0.2%	0.3
Personnel costs	43.7	42.3	57.2	3.3%	1.4
External supplies and services	54.8	53.7	84.2	2.0%	1.1
Other operational costs	12.5	14.7	19.8	-15.0%	-2.2
3) Construction costs (IFRIC 12)	106.8	123.1	215.3	-13.2%	-16.3
4) Depreciation and amortization	186.5	180.5	241.9	3.3%	6.0
5) Other	0.8	0.3	1.2	185.9%	0.5
6) EBIT	174.3	162.9	218.9	7.1%	11.5
7) Depreciation and amortization	186.5	180.5	241.9	3.3%	6.0
8) EBITDA	360.9	343.4	460.8	5.1%	17.5
9) Depreciation and amortization	186.5	180.5	241.9	3.3%	6.0
10) Financial result	-25.8	-31.1	-42.6	-17.1%	5.3
11) Income tax expense	39.1	36.3	52.1	7.7%	2.8
12) Extraordinary contribution on energy sector	28.0	27.1	27.0	3.5%	1.0
13) NET PROFIT	81.4	68.4	97.2	19.1%	13.1
14) Non recurrent items	25.6	24.7	24.7	3.5%	0.9
15) RECURRENT NET PROFIT	107.0	93.0	121.8	15.0%	13.9

NON RECURRENT ITEMS:
9M22: i) Extraordinary energy sector
levy, as established in the
2022 State budget law
(€28.0M);
ii) Taxes recovery from
previous years (€2.5M)
9M21: i) Extraordinary energy sector
levy, as established in the
2021 State budget law
(€27.1M)
ii) Taxes recovery from
previous years (€2.4M)

1Includes asset from transmission activity of electricity segment, accepted by regulator outside Totex amount (power line Fernão Ferro Trafaria 2) | 2 2022: Incentive for improvement of the TSO's technical performance (IMDT); 2021: IREI incentive | 3 In 2022, a new remuneration model based on Totex was introduced for the Electricity Transmission activity. For that reason, and for the sake of comparison, some items regarding 9M21 and 2021 information, such as Return on RAB, Recovery of amortizations (net from subsidies) and Opex revenues of the electricity transmission activity were reclassified to Totex Revenues.

9M22 RESULTS 28

APPENDIX

Other operational revenues and costs breakdown

				9M22 / 9M21
€M	9M22	9M21	2021	Δ %	Δ Abs.
Other revenues	18.9	15.2	23.0	23.8%	3.6
Allowed incentives	0.6	1.0	1.0	-40.8%	-0.4
Interest on tariff deviation	-0.2	0.3	0.3	-164.8%	-0.5
Telecommunication sales and services rendered	5.9	5.4	7.7	8.9%	0.5
Consultancy services and other services provided	2.0	0.8	2.0	139.8%	1.1	Includes revenues related to
Other revenues	10.7	7.8	12.0	36.6%	2.9	Electrogas' Net Profit proportion
Other costs	12.5	14.7	19.8	-15.0%	-2.2	(€7.9M in 9M22 and €4.4M in 9M21)
Costs with ERSE	5.0	7.9	10.9	-36.6%	-2.9
Other	7.5	6.8	8.9	10.3%	0.7

APPENDIX EBITDA breakdown (Electricity¹ )

				9M22 / 9M21
€M	9M22	9M21	2021	Δ %	Δ Abs.
1) REVENUES	362.4	369.5	546.0	-1.9%	-7.2
Revenues from assets	33.1	46.3	62.0	-28.4%	-13.1
Return on RAB	2.2	1.2	1.8	75.8%	0.9
Lease revenues from hydro protection zone	0.5	0.5	0.7	-1.3%	0.0
Incentive2 IMDT	5.6	20.2	26.9	-72.1%	-14.5
Recovery of amortizations (net from subsidies)	15.4	14.8	19.8	4.0%	0.6
Subsidies amortization	9.5	9.6	12.8	-1.3%	-0.1
Revenues of TOTEX3	203.6	184.6	250.5	10.3%	19.0
Revenues of OPEX	29.1	33.8	46.0	-13.8%	-4.7
Other revenues	2.9	2.9	6.3	0.9%	0.0
Interest on tariff deviation	0.2	0.2	0.3	-6.7%	0.0
Other	2.7	2.7	6.0	1.5%	0.0
Construction revenues (IFRIC 12)	93.6	102.0	181.3	-8.3%	-8.4
2) OPEX	38.3	47.4	65.9	-19.3%	-9.1
Personnel costs	13.3	12.7	16.9	4.4%	0.6
External supplies and services	22.4	29.2	41.0	-23.3%	-6.8
Other operational costs	2.6	5.5	7.9	-53.3%	-2.9
3) Construction costs (IFRIC 12)	82.0	90.8	164.7	-9.7%	-8.8
4) Depreciation and amortization	120.5	115.6	155.0	4.2%	4.9
5) Other	0.5	0.0	0.8		0.5
6) EBIT	121.1	115.7	159.6	4.6%	5.3
7) Depreciation and amortization	120.5	115.6	155.0	4.2%	4.9
8) EBITDA	241.6	231.3	314.6	4.4%	10.2

1 Includes Electricity and Enondas (wave energy concession) | 2 Incentive for improvement of the TSO's technical performance | 3 In 2022, a new remuneration model based on Totex was introduced for the Electricity Transmission activity. For that reason, and for the sake of comparison, some items regarding 9M21 and 2021 information, such as Return on RAB, Recovery of amortizations (net from subsidies) and Opex revenues of the electricity transmission activity were reclassified to Totex Revenues.

APPENDIX EBITDA breakdown (Natural gas transmission)

				9M22 / 9M21
€M	9M22	9M21	2021	Δ %	Δ Abs.
1) REVENUES	124.1	129.9	180.9	-4.5%	-5.8
Revenues from assets	80.7	77.1	103.4	4.8%	3.7
Return on RAB	33.9	30.6	41.2	10.8%	3.3
Recovery of amortizations (net from subsidies)	42.7	42.1	56.4	1.6%	0.7
Subsidies amortization	4.1	4.4	5.8	-6.9%	-0.3
Revenues of OPEX	35.8	32.0	48.3	11.9%	3.8
Other revenues	-0.8	-0.1	-0.3	795.9%	-0.7	A negative revenue is consistent with
Interest on tariff deviation	-0.4	-0.3	-0.4	28.9%	-0.1	a negative tariff deviation
Consultancy services and other services provided	0.1	0.1	0.1	3.2%	0.0
Other	-0.5	0.1	0.0	-523.8%	-0.7
Construction revenues (IFRIC 12)	8.4	21.0	29.5	-59.9%	-12.6
2) OPEX	33.5	24.9	42.4	34.2%	8.5
Personnel costs	6.1	6.5	8.7	-5.8%	-0.4
External supplies and services	22.9	14.3	28.2	60.3%	8.6
Other operational costs	4.5	4.2	5.6	7.3%	0.3
3) Construction costs (IFRIC 12)	6.3	19.0	26.8	-66.8%	-12.7
4) Depreciation and amortization	46.2	45.9	61.5	0.5%	0.3
5) Other	0.0	0.0	-0.1		0.0
6) EBIT	38.1	40.0	50.3	-4.7%	-1.9
7) Depreciation and amortization	46.2	45.9	61.5	0.5%	0.3
8) EBITDA	84.3	85.9	111.8	-1.9%	-1.6

APPENDIX EBITDA breakdown (Portgás)

				9M22 / 9M21
€M	9M22	9M21	2021	Δ %	Δ Abs.
1) REVENUES	67.1	56.9	81.8	17.9%	10.2
Revenues from assets	32.0	28.7	38.4	11.6%	3.3
Return on RAB	19.4	16.6	22.3	16.6%	2.8
Recovery of amortizations (net from subsidies)	12.5	12.0	16.0	4.6%	0.6
Subsidies amortization	0.1	0.1	0.1	26.4%	0.0
Revenues of OPEX	13.5	13.3	17.0	1.8%	0.2
Other revenues	0.8	-0.4	-0.5	-292.7%	1.3
Interest on tariff deviation	0.0	0.0	0.0	-100.0%	0.0
Adjustments previous years	0.5	-0.6	-0.9	-184.2%	1.1
Other services provided	0.2	0.0	0.1	818.9%	0.2
Other	0.1	0.1	0.3	27.4%	0.0
Construction revenues (IFRIC 12)	20.7	15.4	26.9	34.6%	5.3
2) OPEX	10.8	10.6	13.8	2.0%	0.2
Personnel costs	2.9	3.1	4.1	-7.3%	-0.2
External supplies and services	3.2	3.1	4.7	0.8%	0.0
Other operational costs	4.7	4.3	4.9	9.7%	0.4
3) Construction costs (IFRIC 12)	18.5	13.2	23.8	39.4%	5.2
4) Depreciation and amortization	13.1	12.2	16.4	6.6%	0.8
5) Other	0.0	0.0	0.0		0.0
6) EBIT	24.8	20.9	27.8	18.9%	3.9
7) Depreciation and amortization	13.1	12.2	16.4	6.6%	0.8
8) EBITDA	37.8	33.1	44.2	14.3%	4.7

APPENDIX EBITDA breakdown (Transemel)

					9M22 / 9M21
€M	9M22	9M21	2021	Δ %	Δ Abs.
1) REVENUES	10.0	8.3	12.1	21.8%	1.8
2) OPEX	2.9	2.6	3.9	9.8%	0.3
3) Depreciation and amortization	1.6	1.2	1.5	34.6%	0.4
4) EBIT	5.6	4.5	6.7	25.5%	1.1
5) Depreciation and amortization	1.6	1.2	1.5	34.6%	0.4
6) EBITDA	7.2	5.6	8.2	27.3%	1.5

APPENDIX EBITDA breakdown (Other¹ )

				9M22 / 9M21
€M	9M22	9M21	2021	Δ %	Δ Abs.
1) TOTAL REVENUES	15.9	12.8	17.4	23.9%	3.1
Other revenues	15.9	12.8	17.4	23.9%	3.1
Allowed incentives	0.6	1.0	1.0	-40.8%	-0.4
Interest on tariff deviation	0.0	0.3	0.4		-0.4
Telecommunication sales and services rendered	5.9	5.4	7.7	8.9%	0.5
Consultancy services and other services provided	1.0	0.5	0.8	92.1%	0.5
Other	8.5	5.6	7.5	50.5%	2.8
2) OPEX	25.6	25.2	35.1	1.7%	0.4
Personnel costs	20.8	19.5	26.9	6.7%	1.3
External supplies and services	4.5	5.2	7.4	-14.6%	-0.8
Other operational costs	0.3	0.4	0.8	-26.3%	-0.1
3) Depreciation and amortization	5.3	5.6	7.4	-5.8%	-0.3
4) Other	0.3	0.3	0.4	0.0%	0.0
5) EBIT	-15.3	-18.2	-25.5	-16.3%	3.0	Includes the negative impacts of the
6) Depreciation and amortization	5.3	5.6	7.4	-5.8%	-0.3	PPAs2 of Portgás (€3.9M) and
7) EBITDA	-10.0	-12.6	-18.0	-20.9%	2.6	Transemel (€1.2M) in 9M22

APPENDIX Capex and RAB

				9M22 / 9M21
€M	9M22	9M21	2021	Δ %	Δ Abs.
CAPEX	126.0	141.7	247.1	-11.1%	-15.7
Electricity	93.6	102.0	181.3	-8.3%	-8.4
Natural gasT	8.4	21.0	29.5	-59.9%	-12.6
Natural gasD	20.7	15.4	26.9	34.6%	5.3
Transemel	3.2	3.2	9.2	-1.8%	-0.1
Other	0.1	0.1	0.2	23.2%	0.0
Transfers to RAB	83.2	80.5	309.1	3.5%	2.8
Electricity	64.0	61.3	253.7	4.4%	2.7
Natural gasT	1.6	4.3	29.9	-62.6%	-2.7
Natural gasD	17.6	14.9	25.5	18.7%	2.8
Average RAB	3,603.3	3,518.5	3,602.8	2.4%	84.8
Electricity	2,049.4	1,935.8	2,013.0	5.9%	113.7
With premium	1,024.5	1,015.0	1,039.8	0.9%	9.5
Without premium	1,024.9	920.7	973.2	11.3%	104.2
Land	194.8	207.1	205.6	-5.9%	-12.3
Natural gasT	876.9	905.2	910.8	-3.1%	-28.3
Natural gasD	482.1	470.5	473.4	2.5%	11.6
RAB e.o.p.	3,558.5	3,476.2	3,644.7	2.4%	82.3
Electricity	2,028.3	1,916.5	2,071.0	5.8%	111.8
With premium	1,003.2	996.5	1,046.0	0.7%	6.6
Without premium	1,025.1	920.0	1,025.0	11.4%	105.2
Land	190.2	202.5	199.4	-6.1%	-12.3
Natural gasT	856.4	886.3	897.5	-3.4%	-29.9
Natural gasD	483.6	470.9	476.8	2.7%	12.7

				9M22 / 9M21
€M	9M22	9M21	2021	Δ %	Δ Abs.
RAB's remuneration	133.9	118.9	162.7	12.6%	15.0
Electricity	80.1	71.1	98.5	12.6%	8.9
With premium	40.4	40.0	54.6	1.1%	0.4
Without premium	39.6	31.1	43.9	27.3%	8.5
Land	0.5	0.5	0.7	-1.3%	0.0
Natural gasT	33.9	30.6	41.2	10.8%	3.3
Natural gasD	19.4	16.6	22.3	16.6%	2.8
RoR's RAB	5.0%	4.5%	4.5%		0.4p.p.
Electricity	5.2%	4.9%	4.9%		0.3p.p.
With premium	5.5%	5.3%	5.3%		0.2p.p.
Without premium	4.7%	4.5%	4.5%		0.2p.p.
Land	0.3%	0.3%	0.3%		0.0p.p
Natural gasT	5.2%	4.5%	4.5%		0.7p.p.
Natural gasD	5.4%	4.7%	4.7%		0.6p.p.

APPENDIX Tariff deviations

€M	9M22	9M21	2021
Electricity	54.4	67.3	86.9
Trading	-481.1	-66.5	-218.2
Natural gasT	-92.1	-150.0	-134.5
Natural gasD	9.5	-0.4	-0.8
Total1	-509.2	-149.6	-266.6

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

APPENDIX Funding sources

€M	Current	Non	Sep 2022
		Current
Bonds	550.0	1,099.1	1,649.1
Bank borrowings	68.0	366.9	435.0
Commercial paper	0.0	250.0	250.0
Bank overdrafts	0.0	0.0	0.0
Finance lease	1.5	2.6	4.1
TOTAL	619.5	1,718.6	2,338.1
Accrued interest	17.3	0.0	17.3
Prepaid interest	-5.8	-2.1	-7.9
TOTAL	631.1	1,716.4	2,347.5

• REN maintained its financial strength and continued to present high liquidity and a low average cost of debt;
• REN's total liquidity reached €1,583.4M, 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 September 2022 amounted to €390.0M (€430.9M at the 31st of December of 2021);
• The Group had credit lines negotiated and not used in the amount of €80M, maturing up to one year, which are automatically renewed periodically (if they are not resigned in the contractually specified period for that purpose);
• REN also had ten active commercial paper programs in the amount of €2,025M, of which €1,775M were available for use. Of the total amount 750,000 thousand Euros have a guaranteed placement, of which 500,000 thousand Euros are available for utilization at 30th September 2022.
• REN's financial liabilities had the following main types of covenants: Cross Default, Pari Passu, Negative Pledge, leverage ratios 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 1.69% on the 30th of September 2022 and 1.57% on the 31st of December 2021.

APPENDIX Debt and debt metrics

	9M22	9M21	2021
Net Debt (€M)	1,941.5	2,378.2	2,362.0
Average cost	1.7%	1.6%	1.6%
Average maturity (years)	3.2	3.5	3.3
Net Debt / EBITDA	4.0x	5.2x	5.1x
DEBT BREAKDOWN
Funding sources
Bond issues	71.4%	60.9%	62.6%
EIB	16.2%	15.5%	15.7%
Commercial paper	10.4%	17.7%	16.4%
Other	2.0%	5.9%	5.4%
TYPE
Float	30%	40%	40%
Fixed	70%	60%	60%

RATING	Long term	Short term	Outlook	Date
Moody's	Baa2	-	Stable	27/07/2022
Standard & Poor's	BBB	A-2	Stable	29/10/2021
Fitch	BBB	F3	Stable	14/10/2022

APPENDIX

Market information

CMVM: MAIN PRESS RELEASES (from January 2022)

• Feb-04: 2022 Financial Calendar
• Feb-23: Summary of annual information disclosed in 2021
• Mar-24: 2021 annual consolidated results
• Mar-29: Notice to convene the annual general shareholders meeting and deliberation proposals
• Mar-29 : Accounts reporting documents referring to the financial year ended on 31st December 2021 - item 1 of the agenda for the general shareholders meeting
• Mar-29 : Corporate Governance report included in the 2021 Report and Accounts
• Apr-28: Resolutions approved at the Annual General Shareholders Meeting
• May-09: Payment of dividends of the 2021 financial year
• May-20: 2022 first quarter results
• May-20: Report & Accounts 1Q22
• Jul-27: Moody's upgrades REN's rating to 'Baa2' with stable outlook
• Jul-28: First Half 2022 consolidated results
• Jul-28:Report & Accounts 1H2022

Consolidated Financial Statements

CONSOLIDATED FINANCIAL STATEMENTS

Financial position

d Euros	Sep 2022 Dec 2021		Thousand Euros	Sep 2022	Dec 2021
S			EQUITY
rrent assets			Shareholders' equity
erty, plant and equipment	122,839	119,551	Share capital	667,191	667,191
ible assets	4,063,086	4,123,069	Own shares	$-10,728$	$-10,728$
will	4,518	4,757	Share premium	116,809	116,809
ments in associates and joint ventures	198,933	169,283	Reserves	396,576	311,988
ments in equity instruments at fair value through other comprehensive income	141,791	162,724	Retained earnings	231,801	232,978
ative financial instruments	74,056	19,347	Other changes in equity	$-5,561$	$-5,561$
financial assets	168	137	Net profit for the period	81,426	97,153
and other receivables	74,774	37,026	Total equity	1,477,515	1,409,830
red tax assets	80,411	96,673
	4,760,577	4,732,567	LIABILITIES
t assets			Non-current liabilities
ories	8,754	8,545	Borrowings	1,716,430	2,390,852
and other receivables	316,300	448,171	Liability for retirement benefits and others	80,090	94,109
nt income tax recoverable	770	$\bf{0}$	Derivative financial instruments	69,407	23,112
ative financial instruments	520	474	Provisions	9,316	8,872
financial assets	$\overline{0}$	$\bf{0}$	Trade and other payables	859,772	507,606
and cash equivalents	478,381	398,759	Deferred tax liabilities	111,795	107,569
	804,725	855,949		2,846,810	3,132,120
			Current liabilities
ssets	5,565,301	5,588,516	Borrowings	631,059	375,221
			Provisions	$\overline{0}$	$\bf{0}$
			Trade and other payables	609,916	644,701
			Income tax payable	$\overline{0}$	26,644
				1,240,975	1,046,566
			Total liabilities	4,087,786	4,178,686

CONSOLIDATED FINANCIAL STATEMENTS

Profit and loss

Thousand Euros	Sep 2022	Sep 2021
Sales	96	115
Services rendered	429,640	412,855
Revenue from construction of concession assets	122,715	138,387
Gains / (losses) from associates and joint ventures	8,288	4,670
Other operating income	20,698	21,660
Operating income	581,438	577,686
Cost of goods sold	$-630$	$-748$
Costs with construction of concession assets	$-106,807$	$-123,085$
External supplies and services	$-55,014$	$-53,907$
Personnel costs	$-43,482$	$-42,109$
Depreciation and amortizations	$-186,549$	$-180,533$
Provisions	$-526$	0
Impairments	$-283$	$-283$
Other expenses	$-11,855$	$-13,943$
Operating costs	$-405, 147$	$-414,608$
Operating results	176,291	163,078
Financial costs	$-43,623$	$-41,319$
Financial income	7,536	2,934
Investment income - dividends	8,338	7,020
Financial results	$-27,749$	$-31,365$
Profit before income tax and ESEC	148,542	131,713
Income tax expense	$-39,094$	$-36,290$
Energy sector extraordinary contribution (ESEC)	$-28,021$	$-27,070$
Consolidated profit for the period	81,426	68,353
Attributable to:
Equity holders of the Company	81,426	68,353
Non-controlled interest	$\overline{0}$	$\bf{0}$
Consolidated profit for the period	81,426	68,353

CONSOLIDATED FINANCIAL STATEMENTS

Cash flow

Thousand Euros	Sep 2022	Sep 2021
Cash flow from operating activities:
Cash receipts from customers	2.585.189	1,853,130 a)
Cash paid to suppliers	$-1,821,647$	$-1, 133, 373$ a)
Cash paid to employees	$-55,760$	$-55,833$
Income tax received/paid	$-63,221$	$-28,027$
Other receipts / (payments) relating to operating activities	$-31,203$	$-15,981$
Net cash flows from operating activities (1)	613,358	619,916
Cash flow from investing activities:
Receipts related to:
Investments in associates	391	199
Property, plant and equipment	$\overline{0}$	$\bf{0}$
Other financial assets	$\overline{0}$	0
Investment grants	78,999	25,368
Interests and other similar income	$\overline{0}$	0
Dividends	15,859	13,218
Payments related to:
Other financial assets	$\overline{0}$	$\bf{0}$
Financial investments	$\Omega$	$\bf{0}$
Equity instruments through other comprehensive income	$\overline{0}$	0
Property, plant and equipment	$-6.109$	$-2,142$
Intangible assets	$-142,549$	$-143,736$
Net cash flow used in investing activities (2)	$-53,409$	$-107,094$
Cash flow from financing activities:
Receipts related to:
Borrowings	915,000	1,585,000
Capital and supplementary obligations	$\overline{0}$	0
Interests and other similar income	$\overline{0}$	$\bf{0}$
Payments related to:
Borrowings	$-1,254,942$	$-1,552,704$
Interests and other similar expense	$-36,638$	$-35,064$
Leasings	$-1.845$ $-22$	$-1.693$
Interests of Leasings		$-24$
Dividends	$-102.150$	$-113,426$
Net cash from / (used in) financing activities (3)	-480,597	$-117,911$
Net (decrease) / increase in cash and cash equivalents (1)+(2)+(3)	79,353	394,911
Effect of exchange rates	269	$-538$
Cash and cash equivalents at the beginning of the year	398,759	61,169
Changes in the perimeter	$\overline{0}$	0
Cash and cash equivalents at the end of the period	478,381	455,542
Detail of cash and cash equivalents
Cash	24	22
Bank overdrafts	$\overline{0}$	$-54$
Bank deposits	478,357	455,574
	478,381	455,542

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.

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.

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