REN-Redes Energeticas Nacionais

Investor Presentation • Mar 24, 2022

Results Report

th March 2021

AGENDA

1. Overview of the period

2021-2024 Strategic Plan execution & 3. Outlook

1. Overview of the period

KEY MESSAGES 2021

EBITDA achieved €460.8M, a decline of 2.0% YoY. This result was driven by: (1) the reduction in both RAB and remuneration rates(-€3.4M); (2) a decline in IREI (Incentive for Economic Efficiency of Investment) of -€5.1M and (3) a negative contribution from OPEX, due to higher electricity costs.

International business performance improved by +€0.1M, due to the strong performance of Transemel (+€1.4M).

Net Profit reached €97.2M (a decline of 11.1% versus 2020), mostly due to a lower EBITDA and an increase in Income Tax, partially compensated by higher financial results (gain of €4.2M to -€42.6M).

Capex increased by €73.8M (vs €173.3M in 2020), while transfers to RAB soared to €309.1M, an increase of €229.5M, as a result of the electricity transmission business (+€208.6M). Strong consolidation of transfers as 2020 had several projects delayed due to the pandemic.

Definition of renewed and ambitious ESG targets, with a commitment to achieve carbon neutrality by 2040. Issuance of REN's first green bond.

Renewable energy sources (RES) reached 59.2% of total supply (approx.+0.7pp than in 2020). Electricity consumption increased by 1.4% whilst natural gas consumption fell by 4.6% due to a decrease in natural gas use for electricity generation (-9.7%).

The levels of service quality remained high. The level of energy transmission losses stayed in accordance with the figure for the previous year and in line with other TSOs best practices, while the gas transmission combined availability rate reached almost 100%.

SECTOR OVERVIEW

New Regulatory Model for the Electricity Sector

ERSE published the final "Tariffs and Prices for Electricity in 2022 and parameters for 2022-2025 regulatory period", on the 15th December.

A new regulatory model is defined with a revenue cap methodology applied to the controllable TOTEX of electricity transmission. However, assets pre-2022 are still eligible under the previous reference cost mechanism methodology

New regulatory period for the electricity sector

• (keeping the 0.75% premium over Base RoR and still recording the corresponding asset D&A recovery and the gain on RAB as revenue). The regulator defined the Rate of Return applicable to the next regulatory period 2022-2025 with a base rate of 4.4%, considering 0.302% for the Portuguese 10Y Treasury bonds. Under the indexation mechanism a variation of 1 pp of the Portuguese
• For the years 2023 to 2025, the efficiency factor for both TEE and GGS activities are set to 1.5%.

10YTB implies a variation of 0.3 pp in the RoR. The minimum is set at 3.7% and the maximum at 7%.

• ERSE introduced two new incentive mechanisms:
  • Incentive to Improve Technical Performance (IMDT) Promotion of an adequate network performance, based on performance metrics and ranging between -€20M to +€20M. Not to be included in the Efficiency Sharing Mechanism
  • Efficiency Sharing Mechanism a mechanism under which the positive or negative spread from the defined reference return is shared / recovered at the end of the regulatory period (cumulative sharing ratios 0%; 50% and 100% as the spread grows).

New National Electricity System Law

Following the government's public consultation which ended in November 2021, the new Law-Decree n.º 15/2022 was published on the 14th of January 2022, regarding the organization and functioning rules of the National Electricity System (SEN). The new law acts on five axes: i) production licensing; ii) network planning; iii) competitive mechanisms to access SEN activities; iv) giving consumers an active role in the system; and v) allowance to innovative technologies.

Energy Transition

REN applied to the Portuguese Recovery and Resilience Plan (PRR) and had two projects selected for the final phase: (i) the H2 Green Valley project, for the development of a Green H2 ecosystem in Sines, and (ii) the High Power Mobility project, for implementation of 8 pilot projects using the solution for electric charging through the Transmission Grid patented by REN.

REN projects have an estimated total investment of €52M (of which €37.5M to be made by REN) and €23M (of which €13.5M to be made by REN), respectively. Final Proposals will be submitted at the beginning of April 2022.

Following the impacts of the pandemic, the European Commission created the Next Generation EU, a recovery instrument, from which the Recovery and Resilience Facility is developed, which includes the PRR.

2. Business performance

BUSINESS HIGHLIGHTS

High quality of service in Portugal, in a context of increasing electricity consumption and greater share of renewables supply

FINANCIAL HIGHLIGHTS

Solid contribution from Financial Results and strong improvement in CAPEX and Net Debt, nonetheless EBITDA and Net Profit decreased

Decline in EBITDA mostly due to lower RAB remuneration and decrease in IREI incentive

EBITDA evolution breakdown €M

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

EBITDA contribution by business segment³ %

DOMESTIC BUSINESS

Slight reduction of Base Return on RAB, driven by the descendent trend in the Portuguese bond yields

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

DOMESTIC BUSINESS

Electricity Gas Transportation

Strong consolidation of Transfers to RAB and Capex YoY

Gas Distribution

Capex €M

Key highlights

Electricity

Main investment projects

• 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;
• Passage at 400 kV of the Falagueira Estremoz Divor Pegões axis, allowing, among others, the supply of electricity to the railway line between Évora and Elvas / Caia;
• 400 kV axis between Vieira do Minho Ribeira de Pena-Feira: new axis will allow the connection and reception of capacity of Alto Tâmega hydroelectric power plant;

Gas Transmission

Main investment projects

• Carriço Storage: Water Firefighting System upgrade;
• Pipeline Network and Sines Terminal: replacement and upgrade of equipment and systems at the end-of-life;

Gas Distribution

• Investments in network expansion and densification, mostly for B2C, with new prospects for B2B investments continuing to be monitored, counting with 60 more clients connected in 2021;
• Licensing of one big project with Capex execution in 2022 (Paredes de Coura).

DOMESTIC BUSINESS Slight decrease in RAB, partially offset by the improvement in Electricity

Average RAB evolution €M

2. Business performance

Return on RAB evolution breakdown €M

DOMESTIC BUSINESS

• Electricity Change in asset mix 43.85 43.27 -0.28 With premium 54.65 Asset base evolution 0.73 99.85 Without premium RoR evolution -1.80 98.50 Return on RAB 2020 56.58 Return on RAB 2021 -€1.36M (-1.4%)
  • Return on RAB drop caused by a lower rate of return on assets with and without premium¹ despite a higher asset base (increased by €13.0M to €2,013.0M)
• Decline in Return on RAB justified by a smaller asset base (by €34.7M to a total of €910.8M) and a lower RoR of 4.52% (-4bps)
• Return on RAB reduction attributed to a lower rate of return (from 4.76% to 4.72%) despite a higher asset base (+€1.8M to a total of €473.4M)

RAB remuneration decreased across all businesses driven by a lower RoR

DOMESTIC BUSINESS

OPEX increased by 10.4% YoY, with core OPEX rising 5.2%

Core OPEX¹ evolution €M

Key highlights

Core external costs

• Electricity costs in LNG terminal (+€5.0M)
• Insurance costs (+€1.8M)

Non-core costs

Pass-through costs (costs accepted in the tariff) increased by €9.0M, of which €5.8M correspond to the acquisition of necessary gas attached to the launch of the organized gas market in Iberia (Mibgás), and €2.3M in costs with cross-border and system services costs

DOMESTIC BUSINESS: ELECTRICITY

Decrease in Electricity EBITDA, mainly explained with lower IREI incentive, despite a higher OPEX contribution

EBITDA breakdown €M

EBITDA breakdown €M

DOMESTIC BUSINESS: GAS TRANSMISSION

Gas Transmission EBITDA reduction mostly justified by lower RAB remuneration and lower opex contribution

2020: €22.6M

DOMESTIC BUSINESS: GAS DISTRIBUTION

2020: €21.8M

(16.6%)

Gas Distribution EBITDA increase credited to amortizations recovery

EBITDA breakdown €M

2020: €471.6M 2020: 4.8%

2021 RESULTS 17

(10.9%)

2020: €8.9M

INTERNATIONAL BUSINESS

Improvement in Transemel's contribution to EBITDA off-setting Electrogas slight decline

Contribution to EBITDA 2021 €M

Key highlights

Transemel, Chile

Revenues increased YoY reflecting the conclusion of expansion projects in 2020 and 2021

(19.8%)

2020: €6.8M €8.2M €1.4M

EBITDA

Electrogas, Chile

EBITDA decreased YoY, due to lower revenues (lower tariff and lower transported volume)

Solid Financial Results, reflecting the downward trend in cost of debt

(8.9%)

Effective tax rate reached 44.9%, a 4.9 p.p. increment relatively to 2020 (including the levy).

which grew by €7.2M to €52.1M.

Increase in the effective tax rate vs 2020 reflecting the different recovery of previous years taxes (€5.6M) versus 2021 (€2.4M).

Net Profit declined mostly due to a lower EBITDA and an increase in Income Tax, partially compensated by higher financial results and lower CESE

Δ Income tax (excl. CESE)

Net Profit 2021

-0.8 -7.2 1.1 109.2 4.2 -9.3 97.2 -€12.1M (-11.1%) Net profit evolution breakdown €M Key highlights

Δ EBITDA Δ Financial Δ CESE

results

Net Profit Δ Depreciation

2020

• The Positive effect of €4.2M from Financial Results as a consequence of better financial conditions and higher dividends from associates (Δ€1.2M)
• Lower charge by CESE (Δ€- 1.1M), reflecting the asset base reduction
• Decrease in tax recovery from previous years (Δ€-3.2M)

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

1 Calculated as Net Debt plus Cash, bank deposits and derivative financial instruments (€404M), excluding effects of hedging on yen denominated debt, accrued interest and bank overdrafts | 2 Includes loans (5.2%) and leasing (0.2%)

SHARE PRICE & SHAREHOLDER RETURN

REN's share close the year with a TSR of 15.5% remarkably above the sector

Analyst recommendations¹

Average Price target
€2.55	€0.23 (8.3%)
2020: €2.78

3. 2021 -24 Strategic Plan execution & Outlook

STRATEGIC PLAN EXECUTION

In 2021, REN was able to deliver according to the 2021-24 strategic guidelines

Strategic guidelines 2021-24	Key achievements during 2021
Investment growth story, delivering	Presentation of the  Development and Investment Plans for the Portuguese electricity and gas transmission infrastructure network for the 2022-2031 period
superior service quality	 Increase of REN's capex by c. 43% Vs. 2020 (from €173M to €247M), mostly driven by the domestic electricity transmission segment
	 Maintenance of high service quality levels, with an average of 0.05 min of electricity interruption time and 99.9% of combined availability rate in the natural gas infrastructure
ESG highest standard	Definition of targets, with a  renewed and ambitious ESG commitment to achieve carbon neutrality by 2040
	 Issuance of REN's first green bond
	within the Board of Directors  Establishment of a Sustainability Committee
Solid financials and sustainable shareholder returns	from to by Fitch and from to  Improvement of REN's credit rating outlook Negative Stable Stable by Moody's Positive

• 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 net debt and capex targets

STRATEGIC PLAN TARGETS

During 2021, REN has successfully met its 2021-24 Business Plan targets

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

4. Shaping a sustainable future

HIGHEST ESG STANDARDS

REN is strongly committed with Sustainability and has set ambitious targets

Environmental

by 2030 vs. 2019 Climate | REN received a Gold Standard for the implementation of a program to quantify and reduce methane emissions from the OGMP 2.0

Reforestation | In 2021, reforestation of 723 ha of right of way passages with native species

Mobility | 28% of REN's fleet is electrified

Gender Equality | 28% of women in management positions

Social initiatives | REN promotes the oldest scientific award in Portugal, Prémio REN, and has carried this work to the African countries with Portuguese as the Official Language

Performance | New ambitious ESG metrics established Green financing | In 2021, REN issued its first green bond

Disclosing on CDP Climate Change since 2010

Recognized commitment for 2 years in a row

Green bond framework certified by ISS

Increasing ESG weight in managers' performance metrics already by 2022

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

Carbon neutral by 2040

-50% CO2 emissions

100% of new bond emissions to be green

HIGHEST ESG STANDARDS

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

MSCI ESG Rating ISS ESG

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

Rating CSA Score Sustainalytics 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

• Evaluation of sustainability practices, incl. management of ESG risks and future performance potential
• REN overall rating in line with industry peers, but higher in selected dimensions such as Social reporting, Climate strategy and Environmental reporting

5. Closing remarks

CLOSING REMARKS

Fully committed to deliver solid results and sustainable returns

EBITDA of €460.8M a decrease of 2% YoY, mostly due to a lower RAB remuneration, decrease in IREI incentive and a negative contribution from OPEX, due to higher electricity costs.

Net Profit amounted to €97.2M (-11.1%) driven by the decrease in EBITDA and a higher income tax, partially offset by the increase in financial results.

Significant Net Debt improvement due to a higher operating cash flow and tariff deviations. Solid Financial Results, reflecting the downward trend in cost of debt.

Strong consolidation of Transfers to RAB and Capex versus 2020 as a result of the reduction in pandemic hurdles, focusing on the energy transition process.

The Board of Directors will propose, at the General Shareholders' Meeting on April 28, the payment of a dividend of 15.4 cents per share, in line with the revised dividend policy for the 2021-24 cycle.

On 15th of December, ERSE released the Tariffs and Prices for Electricity for 2022, as well as the parameters for the regulatory period of 2022-2025. The Electricity framework moved to a TOTEX model and specific incentives rationale, it was extended to 4 years from 3 years, base RoR set at 4.4% (implied 10y PGB yields of 0.302%). REN believes these regulatory changes do not compromise the targets presented at the 2021-24 Strategic Plan.

Appendix 1 - Regulation

REGULATION

The electricity segment is now mainly TOTEX based and benefits from specific incentives

REN's domestic allowed revenues breakdown

1. €/ km of network and €/ MVA connected by producer; 2. Equivalent interruption time (TIE: Tempo de Interrupção Equivalente), Network and equipment availability (TCD: Taxa combinada de disponibilidade) and Interconnection capacity 3. Underlying RAB evolution for the period was forecasted by the regulator (ERSE) based on the approved investment plan

REGULATION

Transparent and stable return mechanism

REGULATION - ELECTRICITY

Revenue Cap for TOTEX and additional revenues coming from incentives

Transmission Regulatory Model 2018-21			2022-251 Transmission Regulatory Model (next slide)
	Recovery of	IREI Incentive		Other CAPEX3 (RoR, D&A)	IMDT incentive Efficiency sharing mechanism
Return on Assets and D&A Recovey	Opex		Total Revenues	Revenue Cap for TOTEX	The incentive may take positive IMDT or negative values	Total Revenues
 Promotion of Capex efficiency through the Reference Costs mechanism and the RoR with premium	 Opex Revenue Cap subject to RPI evolution and efficiency target	 Promotion of an adequate network performance and an efficient management of fully depreciated assets		 Amount to cover return on assets (RAB x RoR), D&A recovery and Opex recovery  Based on volume drivers with a global efficiency	 Mechanism under  Promotion of an which positive or adequate negative spread network from the defined performance reference return is shared / recovered from consumers (only applies to the Revenue Cap for TOTEX)
Allowed revenue evolving w/ Capex execution (indexed to 10y PGB   yields)		Fixed allowed revenue (indexed to 10y PGB yields and volume drivers)

o Allowed revenue evolving annually in line with the investments performed by REN and approved by ERSE

o The yearly allowed revenues were converted into an annual equivalent value

o Allowed revenues, estimated for the whole regulatory period, considering ERSE's assumptions regarding REN's capex²

1. Only applicable to activities concerning the management and operation of the transmission network. The regulatory framework applicable to system management activities remains in line with the Regulatory Model 2018-21 (with updated parameters: eg, RoR, Revenue cap for Opex, etc). | 2. REN's yearly allowed revenues were estimated considering REN's historical asset base (for assets pre-2022) with RoR premium and REN's future investments with a favorable opinion from ERSE (for assets post-2021); 3. There is room for additional exceptional investments not included in the base TOTEX if accepted by ERSE.

REGULATION - ELECTRICITY

Allowed revenue evolution and drivers

The revised regulatory model comprises three major building blocks: i) Revenue cap for TOTEX; ii) Incentives; and iii) Efficiency sharing mechanism

New Regulatory Model¹

	Return on Assets pre-2022 (RAB x RoR)	 Assets without premium: Base RoR set at 4.4%	 RoR indexed to 10Y PGB yields
X E T O T or f p		Assets with premium: 0.75bp premium over RoR 	 Asset base evolution used by the regulator to estimate REN's returns
	Return on Assets post-2021 (RAB x RoR)	Assets without premium: Base RoR set at 4.4% 
		Premium over RoR and RAB no longer applicable to new investments.  However, due to TOTEX model, potential upside on capex optimization
a C e u n e	D&A Recovery pre-2022	D&A from the exercise and gain on D&A of RAB at reference costs  recorded as revenue	Fixed amount over 2022-25 
v e R	D&A recovery post-2021	 Annual D&A for assets post-2021 and Opex recovered as a sole component (concept of "Revenue cap" for Opex no longer exists)	75% is fixed and 25% is variable2 
	Opex recovery		 RPI –X type evolution with - 1.5% X factor
+
	Incentives	The IMDT incentive ranges from -  performance indicators: (i) Network and equipment availability, (ii) Equivalent interruption time, and (iii) Achievement of European interconnection capacity target	€20 M to + €20 M, depending on the value achieved by REN in each of the 3
+
	Efficiency sharing mechanism (detailed	Sharing mechanism through which, at the end of the regulatory cycle, deviations from the defined reference return are  shared with consumers
next slide)		 The sharing mechanism is applicable to the Revenue Cap base for TOTEX and excludes IMDT

1. Only applicable to activities concerning the management and operation of the transmission network. The regulatory framework applicable to system management activities remains in line with the Regulatory Model 2018-21 (with updated parameters: eg, RoR, Revenue cap for Opex, etc).| 2. The variable component depends on €/ km of network and €/ MVA connected by producer

REGULATION - ELECTRICITY

Spread between efficiency performance and reference return is progressively shared with consumers

Description Calculation Efficiency sharing mechanism

• At the end of the regulatory cycle, REN's actual outperformance or underperformance under TOTEX is measured against a reference rate of return. The sum of the differences of the period is shared with consumers, under certain conditions
  • o Reference return: Set as the related asset weighted average of the yearly RoR with and without premium. Evolves with 10Y PGB yields
  • o REN's TOTEX yearly outperformance or underperformance: Actual TOTEX yearly margin of the period divided by the actual RAB value
• Efficiencies are calculated after the end of the regulatory period and shared during the next one (recovered or paid back gradually over 2027-2029)
• Efficiencies are shared progressively depending on the efficiencies level band, which establishes the sharing of 0%, 50% or 100%

Sharing mechanism band, % shared with consumers

• IMDT incentive
• Reference cost mechanism incentive (2009-21) allowances
• Additional exceptional investments which are not included in the base TOTEX
• Non-controllable costs and other costs not subject to efficiency

Appendix 2 - Financials

APPENDIX Results breakdown

			2021 / 2020
€M	2021	2020	Δ %	Δ Abs.
1) TOTAL REVENUES	838.4	758.5	10.5%	79.9
Revenues from assets	423.7	431.4	-1.8%	-7.7
Return on RAB	162.0	165.4	-2.1%	-3.4
Electricity	98.5	99.9	-1.4%	-1.4
Natural gas	41.2	43.1	-4.5%	-1.9
Portgás	22.3	22.4	-0.5%	-0.1
Lease revenues from hydro protection zone	0.7	0.7	-1.2%	0.0
Economic efficiency of investments	26.9	32.0	-16.0%	-5.1
Recovery of amortizations (net from subsidies)	215.4	214.3	0.5%	1.1
Subsidies amortization	18.7	19.0	-1.5%	-0.3
Revenues from Transemel	12.0	10.1	18.0%	1.8
Revenues of OPEX	141.8	130.1	9.0%	11.8
Other revenues	23.0	26.0	-11.6%	-3.0
Construction revenues (IFRIC 12)	237.9	160.9	47.9%	77.0
2) OPEX	161.1	145.8	10.6%	15.4
Personnel costs	57.2	55.6	2.8%	1.5
External supplies and services	84.2	68.5	22.8%	15.6
Other operational costs	19.8	21.6	-8.3%	-1.8
3) Construction costs (IFRIC 12)	215.3	142.0	51.5%	73.2
4) Depreciation and amortization	241.9	241.2	0.3%	0.8
5) Other	1.2	0.5	125.5%	0.6
6) EBIT	218.9	229.0	-4.4%	-10.1
7) Depreciation and amortization	241.9	241.2	0.3%	0.8
8) EBITDA	460.8	470.2	-2.0%	-9.3
9) Depreciation and amortization	241.9	241.2	0.3%	0.8
10) Financial result	-42.6	-46.8	-8.9%	4.2
11) Income tax expense	52.1	44.9	16.1%	7.2
12) Extraordinary contribution on energy sector	27.0	28.1	-3.8%	-1.1
13) NET PROFIT	97.2	109.2	-11.1%	-12.1
14) Non recurrent items	24.7	22.5	9.8%	2.2
15) RECURRENT NET PROFIT	121.8	131.7	-7.5%	-9.9

NON RECURRENT ITEMS: 2021: i) Extraordinary energy sector levy, as established in the 2021 State budget law (€27.0M);
ii) Taxes recovery from
previous years (€2.4M)
2020: i) Extraordinary energy sector levy, as established in the
2020 State budget law
(€28.1M)
ii) Taxes recovery from
previous years (€5.6M)

APPENDIX

Other operational revenues and costs breakdown

			2021 / 2020
€M	2021	2020	Δ %	Δ Abs.
Other revenues	23.0	26.0	-11.6%	-3.0
Allowed incentives	1.0	1.3	-23.1%	-0.3
Interest on tariff deviation	0.3	0.5	-25.5%	-0.1
Telecommunication sales and services rendered	7.7	6.7	13.9%	0.9
Consultancy services and other services provided	2.0	2.9	-32.0%	-0.9	Includes revenues related to
Other revenues	12.0	14.6	-17.8%	-2.6	Electrogas' Net Profit proportion
Other costs	19.8	21.6	-8.3%	-1.8	(€5.9M in 2021 and €7.2M in 2020)
Costs with ERSE	10.9	11.5	-4.9%	-0.6
Other	8.9	10.1	-12.1%	-1.2

APPENDIX EBITDA breakdown (Electricity)

			2021 / 2020
€M	2021	2020	Δ %	Δ Abs.
1) REVENUES	546.0	495.8	10.1%	50.2
Revenues from assets	281.9	288.9	-2.4%	-7.0
Return on RAB	98.5	99.9	-1.4%	-1.4
Lease revenues from hydro protection zone	0.7	0.7	-1.2%	0.0
Economic efficiency of investments	26.9	32.0	-16.0%	-5.1
Recovery of amortizations (net from subsidies)	143.0	143.2	-0.2%	-0.2
Subsidies amortization	12.8	13.1	-2.4%	-0.3
Revenues of OPEX	76.5	72.2	6.0%	4.3
Other revenues	6.3	8.3	-24.2%	-2.0
Interest on tariff deviation	0.3	0.4	-26.6%	-0.1
Other	6.0	7.9	-24.1%	-1.9
Construction revenues (IFRIC 12)	181.3	126.4	43.4%	54.9
2) OPEX	65.9	68.3	-3.5%	-2.4
Personnel costs	16.9	17.1	-1.3%	-0.2
External supplies and services	41.0	40.0	2.6%	1.0
Other operational costs	7.9	11.1	-28.9%	-3.2
3) Construction costs (IFRIC 12)	164.7	112.2	46.7%	52.5
4) Depreciation and amortization	155.0	155.7	-0.5%	-0.7
5) Other	0.8	0.2	283.7%	0.6
6) EBIT (1-2-3-4-5)	159.6	159.4	0.2%	0.3
7) Depreciation and amortization	155.0	155.7	-0.5%	-0.7
8) EBITDA (6+7)	314.6	315.1	-0.1%	-0.5

APPENDIX EBITDA breakdown (Natural gas transmission)

			2021 / 2020
€M	2021	2020	Δ %	Δ Abs.
1) REVENUES	180.9	158.9	13.9%	22.1
Revenues from assets	103.4	104.5	-1.0%	-1.1
Return on RAB	41.2	43.1	-4.5%	-1.9
Recovery of amortizations (net from subsidies)	56.4	55.5	1.6%	0.9
Subsidies amortization	5.8	5.8	0.0%	0.0
Revenues of OPEX	48.3	40.9	18.0%	7.4
Other revenues	-0.3	1.6	-117.1%	-1.9
Interest on tariff deviation	-0.4	-0.4	15.0%	-0.1
Consultancy services and other services provided	0.1	0.2	-31.1%	-0.1
Other	0.0	1.8	-100.0%	-1.8
Construction revenues (IFRIC 12)	29.5	11.9	148.6%	17.6
2) OPEX	42.4	28.9	46.6%	13.5
Personnel costs	8.7	8.2	5.2%	0.4
External supplies and services	28.2	15.4	82.7%	12.8
Other operational costs	5.6	5.3	5.9%	0.3
3) Construction costs (IFRIC 12)	26.8	9.7	175.2%	17.0
4) Depreciation and amortization	61.5	60.7	1.4%	0.9
5) Other	-0.1	-0.1	-24.0%	0.0
6) EBIT	50.3	59.6	-15.7%	-9.4
7) Depreciation and amortization	61.5	60.7	1.4%	0.9
8) EBITDA	111.8	120.3	-7.1%	-8.5

A negative revenue is consistent with a negative tariff deviation

APPENDIX EBITDA breakdown (Portgás)

			2021 / 2020
€M	2021	2020	Δ %	Δ Abs.
1) REVENUES	81.8	77.1	6.1%	4.7
Revenues from assets	38.4	38.0	1.1%	0.4
Return on RAB	22.3	22.4	-0.5%	-0.1
Recovery of amortizations (net from subsidies)	16.0	15.5	3.2%	0.5
Subsidies amortization	0.1	0.1	23.6%	0.0
Revenues of OPEX	17.0	16.9	0.3%	0.0
Other revenues	-0.5	-0.5	6.9%	0.0
Interest on tariff deviation	0.0	0.0	-290.9%	0.0
Adjustments previous years	-0.9	-1.0	-12.3%	0.1
Other services provided	0.1	0.2	-66.1%	-0.1
Other	0.3	0.4	-11.9%	0.0
Construction revenues (IFRIC 12)	26.9	22.6	19.1%	4.3
2) OPEX	13.8	13.0	6.2%	0.8
Personnel costs	4.1	4.2	-1.8%	-0.1
External supplies and services	4.7	3.9	20.3%	0.8
Other operational costs	4.9	4.9	1.6%	0.1
3) Construction costs (IFRIC 12)	23.8	20.1	18.5%	3.7
4) Depreciation and amortization	16.4	15.8	3.9%	0.6
5) Other	0.0	0.0	-87.2%	0.0
6) EBIT	27.8	28.2	-1.5%	-0.4
7) Depreciation and amortization	16.4	15.8	3.9%	0.6
8) EBITDA	44.2	44.0	0.5%	0.2

APPENDIX EBITDA breakdown (Transemel)

			2021 / 2020
€M	2021	2020	Δ %	Δ Abs.
1) REVENUES	12.1	10.1	19.8%	2.0
2) OPEX	3.9	3.3	17.8%	0.6
3) Depreciation and amortization	1.5	1.5	2.0%	0.0
4) EBIT	6.7	5.3	26.6%	1.4
5) Depreciation and amortization	1.5	1.5	2.0%	0.0
6) EBITDA	8.2	6.8	21.1%	1.4

APPENDIX EBITDA breakdown (Other¹ )

			2021 / 2020
€M	2021	2020	Δ %	Δ Abs.
1) TOTAL REVENUES	17.4	16.5	5.5%	0.9
Other revenues	17.4	16.5	5.5%	0.9
Allowed incentives	1.0	1.3	-23.1%	-0.3
Interest on tariff deviation	0.4	0.4	8.7%	0.0
Telecommunication sales and services rendered	7.7	6.7	13.9%	0.9
Consultancy services and other services provided	0.8	0.6	38.9%	0.2
Other	7.5	7.5	0.0%	0.0
2) OPEX	35.1	32.2	9.0%	2.9
Personnel costs	26.9	25.8	4.4%	1.1
External supplies and services	7.4	6.1	21.9%	1.3
Other operational costs	0.8	0.4		0.4
3) Depreciation and amortization	7.4	7.4	-0.1%	0.0
4) Other	0.4	0.4	0.0%	0.0
5) EBIT	-25.5	-23.5	8.5%	-2.0
6) Depreciation and amortization	7.4	7.4	-0.1%	0.0
7) EBITDA	-18.0	-16.0	12.5%	-2.0

Includes the negative impacts of the PPAs² of Portgás (€5.4M) and Transemel (€1.7M) in 2021

APPENDIX Capex and RAB

			2021 / 2020
€M	2021 2020		Δ %	Δ Abs.
CAPEX	247.1	173.3	42.6%	73.8
Electricity	181.3	126.4	43.4%	54.9
Natural gasT	29.5	11.9	148.6%	17.6
Natural gasD	26.9	22.6	19.1%	4.3
Transemel	9.2	12.1	-23.8%	-2.9
Other	0.2	0.3	-43.7%	-0.2
Transfers to RAB	309.1		79.6 288.5%	229.5
Electricity	253.7	45.1	462.8%	208.6
Natural gasT	29.9	12.6	136.8%	17.3
Natural gasD	25.5	21.8	16.6%	3.6
Average RAB	3 602.8	3 635.0	-0.9%	-32.2
Electricity	2 013.0	2 000.0	0.7%	13.0
With premium	1 039.8	1 058.5	-1.8%	-18.7
Without premium	973.2	941.5	3.4%	31.7
Land	205.6	217.9	-5.7%	-12.3
Natural gasT	910.8	945.5	-3.7%	-34.7
Natural gasD	473.4	471.6	0.4%	1.8
RAB e.o.p.	3 644.7	3 564.2	2.3%	80.5
Electricity	2 071.0	1 954.9	5.9%	116.0
With premium	1 046.0	1 033.4	1.2%	12.5
Without premium	1 025.0	921.5	11.2%	103.5
Land	199.4	211.7	-5.8%	-12.3
Natural gasT	897.5	924.0	-2.9%	-26.5
Natural gasD	476.8	473.5	0.7%	3.3

			2021 / 2020
€M	2021	2020	Δ %	Δ Abs.
RAB's remuneration	162.7	166.1	-2.1%	-3.4
Electricity	98.5	99.9	-1.4%	-1.4
With premium	54.6	56.6	-3.4%	-1.9
Without premium	43.9	43.3	1.3%	0.6
Land	0.7	0.7	-1.2%	0.0
Natural gasT	41.2	43.1	-4.5%	-1.9
Natural gasD	22.3	22.4	-0.5%	-0.1
RoR's RAB	4.5%	4.6%		-0.1p.p.
Electricity	4.9%	5.0%		-0.1p.p.
With premium	5.3%	5.3%		-0.1p.p.
Without premium	4.5%	4.6%		-0.1p.p.
Land	0.3%	0.3%		0.0p.p.
Natural gasT	4.5%	4.6%		0.0p.p.
Natural gasD	4.7%	4.8%		-0.0p.p.

APPENDIX Tariff deviations

€M	2021	2020
Electricity	86.9	75.1
Trading	-218.2	156.0
Natural gasT	-134.5	-79.1
Natural gasD	-0.8	-2.9
Total	-266.6	149.0

! 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	2021
Bonds	0.0	1 726.2	1 726.2
Bank borrowings	158.3	416.6	574.9
Commercial paper	200.0	250.0	450.0
Bank overdrafts	0.0	0.0	0.0
Finance lease	1.5	2.7	4.2
TOTAL	359.8	2 395.6	2 755.3
Accrued interest	23.8	0.0	23.8
Prepaid interest	-8.4	-4.7	-13.1
TOTAL	375.2	2 390.9	2 766.1

• REN maintained its financial strength and continued to present high liquidity and a low average cost of debt;
• REN's total liquidity reached €1,203.8M, including credit facilities, loans, non-used commercial paper programmes, cash and bank deposits;
• Bank borrowings were mainly represented by EIB loans, which amounted €430.9M at the 31st of December of 2021 (€480.8M at the end 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 nine active commercial paper programmes in the amount of €1,925M, of which €1,475M were available for use. Of the total amount 500,000 thousand Euros have a guaranteed placement, of which 250,000 thousand Euros are available for utilization at 31st December 2021.
• 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, 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 1.57% at the end of 2021 and 1.81% in 2020.

APPENDIX Debt and debt metrics

	2021	2020
Net Debt (€M)	2 362.0	2 741.9
Average cost	1.6%	1.8%
Average maturity (years)	3.3	3.4
Net Debt / EBITDA	5.1x	5.8x
DEBT BREAKDOWN
Funding sources
Bond issues	62.6%	50.8%
EIB	15.7%	17.2%
Commercial paper	16.4%	25.0%
Other	5.4%	7.0%
TYPE
Float	40%	38%
Fixed	60%	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

APPENDIX

Market information

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
• Jul-08: Request for temporary suspension of Board Member
• Jul-29: First Half 2021 consolidated results
• Jul-30:Change in qualified shareholding
• Aug-09: Resignation of a Board Member
• Oct-15: ERSE'S proposal for tariffs and prices for electricity for 2022 and parameters for the 2022-2025 regulatory period
• Nov-11: First 9 months 2021 consolidated results
• Dec-16: Tariffs and prices for electricity for 2022 and parameters for the 2022-2025 regulatory period

Consolidated Financial Statements

CONSOLIDATED FINANCIAL STATEMENTS

Financial position

Thousand Euros	2021	2020	Thousand Euros	2021	2020
ASSETS			EQUITY
Non-current assets			Shareholders' equity
Property, plant and equipment	119,551	127,119	Share capital	667,191	667,191
Intangible assets	4,123,069	4,130,562	Own shares	-10,728	-10,728
Goodwill	4,757	5,367	Share premium	116,809	116,809
Investments in associates and joint ventures	169,283	158,845	Reserves	311,988	289,887
Investments in equity instruments at fair value through other comprehensive income	162,724	150,850	Retained earnings	232,978	240,853
Derivative financial instruments	19,347	25,685	Other changes in equity	-5,561	-5,561
Other financial assets	137	102	Net profit for the period	97,153	109,249
Trade and other receivables	37,026	45,507	Total equity	1,409,830	1,407,700
Deferred tax assets	96,673	92,575
	4,732,567	4,736,611	LIABILITIES
Current assets			Non-current liabilities
Inventories	8,545	2,450	Borrowings	2,390,852	2,260,875
Trade and other receivables	448,171	448,099	Liability for retirement benefits and others	94,109	100,507
Current income tax recoverable	0	0	Derivative financial instruments	23,112	29,215
Derivative financial instruments	474	0	Provisions	8,872	8,508
Other financial assets	0	0	Trade and other payables	507,606	371,886
Cash and cash equivalents	398,759	61,499	Deferred tax liabilities	107,569	144,969
	855,949	512,048		3,132,120	2,915,960
			Current liabilities
Total assets	5,588,516	5,248,658	Borrowings	375,221	562,557
			Provisions	0	0
			Trade and other payables	644,701	353,800
			Income tax payable	26,644	8,641
				1,046,566	924,999
			Total liabilities	4,178,686	3,840,958

Total equity and liabilities 5,588,516 5,248,658

CONSOLIDATED FINANCIAL STATEMENTS

Profit and loss

Thousand Euros	2021	2020
Sales	734	64
Services rendered	565,103	563,232
Revenue from construction of concession assets	237,696	160,856
Gains / (losses) from associates and joint ventures	6,431	7,498
Other operating income	28,389	26,683
Operating income	838,353	758,333
Cost of goods sold	-1,212	-719
Costs with construction of concession assets	-215,253	-142,036
External supplies and services	-84,695	-69,022
Personnel costs	-56,108	-55,529
Depreciation and amortizations	-241,940	-241,165
Provisions	-365	-185
Impairments	-1,313	87
Other expenses	-18,604	-20,895
Operating costs	-619,490	-529,464
Operating results	218,863	228,869
Financial costs	-54,356	-59,637
Financial income	3,272	5,651
Investment income - dividends	8,496	7,318
Financial results	-42,588	-46,667
Profit before income tax and ESEC	176,275	182,202
Income tax expense	-52,081	-44,858
Energy sector extraordinary contribution (ESEC)	-27,041	-28,095
Consolidated profit for the period	97,153	109,249
Attributable to:
Equity holders of the Company	97,153	109,249
Non-controlled interest	0	0
Consolidated profit for the period	97,153	109,249
Earnings per share (expressed in euro per share)	0.15	0.16

CONSOLIDATED FINANCIAL STATEMENTS

Cash flow

Thousand Euros	2021	2020
Cash flow from operating activities:
Cash receipts from customers	2,784,889	1,838,089 a)
Cash paid to suppliers	-1,873,431	-1,323,307 a)
Cash paid to employees	-75,741	-78,820
Income tax received/paid	-74,253	-11,456
Other receipts / (payments) relating to operating activities	-61,427	-48,242
Net cash flows from operating activities (1)	700,037	376,264
Cash flow from investing activities:
Receipts related to:
Investments in associates	199	220
Property, plant and equipment	0	0
Other financial assets	0	0
Investment grants	28,533	34,747
Interests and other similar income	0	0
Dividends	13,218	15,105
Payments related to:
Other financial assets	0	0
Financial investments	0	0
Equity instruments through other comprehensive income	-15	0
Property, plant and equipment	-4,840	-13,985
Intangible assets	-196,762	-156,631
Net cash flow used in investing activities (2)	-159,667	-120,544
Cash flow from financing activities:
Receipts related to:
Borrowings	2,035,000	2,426,000
Capital and supplementary obligations	0	0
Interests and other similar income	0	0
Payments related to:
Borrowings	-2,081,311	-2,472,647
Interests and other similar expense	-39,725	-53,169
Leasings	-2,065	-1,768
Interests of Leasings	-29	-32
Dividends	-113,426	-113,426
Net cash from / (used in) financing activities (3)	-201,556	-215,042
Net (decrease) / increase in cash and cash equivalents (1)+(2)+(3)	338,814	40,677
Effect of exchange rates	-1,224	-29
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	398,759	61,169
Detail of cash and cash equivalents
Cash	0	0
Bank overdrafts	0	-330
Bank deposits	398,759	61,499
	398,759	61,169

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.

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Madalena Garrido – Head of IR Alexandra Martins Telma Mendes José Farinha

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