REN Redes Energeticas Nacionais SGPS S A : Resultados consolidados - Report (versão inglesa) 1Q

UNAUDITED ACCOUNTS

09TH MAY 2024

UNAUDITED ACCOUNTS

09TH MAY 2024

KEY MESSAGES - FINANCIAL

€128.9M

-2.3% versus 1Q23

EBITDA

EBITDA decrease driven by:

1. Lower domestic performance
   (€-2.6M), as a result of the decrease in assets and opex remuneration and increase in OPEX.
2. Lower contribution from international business (€-0.5M).

€3.7M

-71.1% versus 1Q23 Net Profit

Net Profit reached €3.7M, as a result of:

1. Decrease in EBIT (€-3.4M),and
2. Lower financial results (€-8.4M) of which €-3.0M due to unfavorable exchange rate differences
3. Lower taxes (€-3.1M) and higher levy (€+0.4M).

€2,361.4M

-2.9% versus 1Q23 Net Debt

(w/o tariff deviations)

• Net debt (excluding tariff deviations) recorded a reduction of €-70.7Min 1Q24 YoY.
• Average cost of debt increased to 2.8% (vs 2.4% in 1Q23)

€47.9M

+4.4% versus 1Q23

CAPEX

• CAPEX rose 4.4% in 1Q24, reflecting REN's continuous commitment towards energy transition.
• Transfers to RAB decreased in
  1Q24 to €2.7M (€-5.6M vs 1Q23), in all business segments.

KEY MESSAGES - OPERATIONAL

88.6%

+16.6 pp versus 1Q23

Renewable energy sources (RES)

• Renewable Energy sources reached 88.6% of total supply (+16.6pp versus 1Q23).
• Electricity consumption remained stable (13.6 TWh).
• Natural gas consumption decreased by 10.1% (to 11.6 TWh).

Quality of service levels remained high

• The level of energy transmission losses in electricity increased 0.2pp versus 1Q23.
• Gas transmission combined availability rate remained at 100%.
• Innovation continues to be a priority in 2024. Subjects such as artificial intelligence and digitization will be the focus. Developments will continue in the areas of robotization, sustainability & circular economy, as well as the integration of renewable gases.

Committed to maintain elevated ESG performance

• REN maintained its AAA score on MSCI ESG Rating and improved its CDP Climate Change score from B to A-, as well as its Sustainalytics ESG Risk Rating score from 18.5 to 16.

PDIRG 2024-2033 | Project of Common Interest from EU

• Since early 2024, REN is concluding technical studies - and has already concluded a part of those - that support the PDIRG 2024-2033investment proposal and that require Government approval to accommodate H2 blends in the NGS.
• Green H2 Corridor H2MED REN projects are now recognized as Project of Common Interest from EU. REN is preparing the applications to CEF financing, in a coordinated work with Enagás, GRTGás and Terega.

BUSINESS HIGHLIGHTS

COMBINED AVAILABILITY RATE REMAINED HIGH IN 1Q24, WITH LOW ENERGY TRANSMISSION LOSSES, IN THE CONTEXT OF GROWING ELECTRICITY AND LOWER GAS CONSUMPTION

			13.6TWh		2.4%		9,439km
			Consumption		Energy transmission losses		Line length
			1Q23: 13.5TWh	0.2TWh (1.2%)	1Q23: 2.2%	0.2 pp	1Q23: 9,424km	14.8km (0.2%)
	Electricity	88.6%		0.00min		98.6%
			Renewables in			Combined
				Average interruption time
			consumption supply			availability rate
			16.6 pp	1Q23: 0.00min	0.00min	0.0 pp
			1Q23: 72.0%	1Q23: 98.6%
			11.6TWh		100.0%		1,375km
	Gas		Consumption	-1.3TWh(-10.1%)	Combined availability rate	0.0 pp	Line length
		1Q23: 12.9TWh	1Q23: 100.0%	1Q23: 1,375km	0km (0.0%)
Transportation
			1.7TWh		99.3%		6,513km
	Gas		Gas distributed		Emergency situations with		Line length
		1Q23: 1.7TWh	0.0TWh (0.0%)	response time up to 60min	-0.1 pp	1Q23: 6,354km	159km (2.5%)
	Distribution			1Q23: 99.4%

FINANCIAL HIGHLIGHTS

DECREASE OF OPERATIONAL RESULTS AND NET PROFIT

EBITDA	€3.0M (2.3%)	Financial results	€8.4M
(64.7%)

€128.9M

€131.9M

€-21.3M

€-12.9M

CAPEX

€2.0M (4.4%)

Average RAB1

€50.0M (1.4%)

€47.9M

€45.9M

€3,499.3

€3,549.4M

Net Profit	€9.1M (71.1%)

€3.7M €12.8M

Net Debt2

€478.9M (21.9%)

€2,670.4M €2,191.5M

1Q24 1Q23

1 Refers only to Domestic RAB | 2 Includes tariff deviations;

EBITDA

DECREASE IN EBITDA DRIVEN BY ASSETS AND OPEX REMUNERATION IN DOMESTIC BUSINESS AND BY DECREASE IN INTERNATIONAL BUSINESS RESULTS

EBITDA evolution breakdown - €M

			€-3.0M
131.9			(-2.3%)
		2.2			128.9
			-0.4	-0.5
	-4.4
EBITDA	Δ Assets and	Δ Other	Δ Opex core	Δ International	EBITDA
1Q23	opex	revenues2		segment3	1Q24

remuneration1

1. Includes electricity regulatory incentives 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 |

1. Includes Apolo SpA and Aerio Chile SpA costs | 4 This value takes into consideration the impact from 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 segment 4 - %

	Electricity			Gas Distribution5
	Gas Transportation		International
				4.4%
65.8%	1Q24	9.1%
				20.7%

4.6%

62.0% 1Q23 9.4%

23.9%

ROR EVOLUTION

DECREASE OF BASE RETURN ON RAB AND PORTUGUESE BOND YIELDS

Portuguese 10Y Treasury Bond Yields * - %

Domestic Business

Base Return on RAB (RoR) ** - %

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

-0.5

-1.0

10Y Bond Yield

Linear (10Y Bond Yield)

AVERAGE YIELD - %

3.2% 3.0%

1Q23 1Q24

Electricity	1Q23	5.3
1Q24
5.2
Gas	1Q23	5.7
Transportation	1Q24	5.3
	1Q23	5.9
Gas
1Q24	5.7
Distribution

* Source: Bloomberg; REN | ** Electricity data collected from Oct. 23 to Sep.24; Gas data collected from Jan.24 to Dec.24.