Naturgy Energy S A : September 2023 Market update

September 2023 Market update

24 October 2023

Market update as of September 2023

Continued to execute on our Strategic Plan revising our estimates upwards

Reinforced our balance sheet and flexibility to fund future growth

More than 50 renewable gas projects in different stages of development

+730MW of renewable capacity

Invested €1.9bnand progressing to bring +1.5GW into operation in 2024

Continued focus on security of energy supply at affordable prices for our clients

Market update

Increased regulatory visibility in	Managed our gas exposure to
some LatAm markets	increase visibility and de-risking

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Key figures as of September 2023

Higher EBITDA and Investment while reducing Net debt

€bn

EBITDA

Investment

Net debt

4.3

1.9

11.2

Trends until September 2023 support year end EBITDA expectations above initial guidance

70% Investment increase

Continued Net debt reduction

First 2023 interim dividend of 0.50

€/sh. paid on 7 August; second interim dividend of 0.50 €/sh. payable on 7 November

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Sources and uses of cash 2023YTD

€bn

Strong balance
sheet and cash			Net debt
flow to fund
	1.6	reduction
attractive			& other
growth and
dividend policy
Cash flow from		1.0	Dividends
4.5
operations
		1.9	Investment
	Sources	Uses

Accelerating investments in Renewables and Networks

	€1.9bn	Other
	Split	10%
€1.1bn			Renewables
		€1.9bn	62%
	Networks
	29%
Sep	Sep
2022	2023

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2023 revised guidance based on current energy scenario

Growing

EBITDA, Investment and dividends while reducing Net debt

Growing EBITDA

EBITDA (€bn)

		>5.4
	5.0		Revised
3.5		>5.0	Previous
2021	2022	2023E

Lower indebtedness and leverage

Net debt (€bn)

ND/	3.6x	2.4x	2.3x
EBITDA
	12.8	12.1	~12.5
	2021	2022	2023E

Investment program acceleration

Investment (€bn)

		~3.0
	1.9
1.5
2021	2022	2023E

Revised dividend distribution
	Dividend floor (€/sh.)
		1.4
1.2	1.2
2021	2022	2023E	5

Appendix

Alternative Performance Metrics

Naturgy's financial disclosures contain magnitudes and metrics drafted in accordance with International Financial Reporting Standards (IFRS) and others that are based on the Group's disclosure model, referred to as Alternative Performance Metrics (APM), which are viewed as adjusted figures with respect to those presented in accordance with IFRS.

The chosen APMs are useful for persons consulting the financial information as they allow an analysisof the financial performance, cash flows and financial situation of Naturgy, and a comparison with other companies.

Below is a glossary of terms with the definition of the APMs:

Alternative performance	Definition and terms	Reconciliation of values	Relevance of use
metrics	30 September 2023	30 September 2022
	EBITDA = Revenue - Procurements + Other			EBITDA ("Earnings Before Interest, Taxes, Depreciation and Amortization")
			measures the Group´s operating profit before deducting interests, taxes,
	operating income - Personnel expenses - Other
			depreciations and amortizations. By dispensing with the financial, tax and
EBITDA	operating expenses + Gain/(loss) on disposals of	Euros 4,313 million	Euros 3,502 million
accounting expenses magnitudes that do not entail a cash outflow, it allows
	fixed assets + Release of fixed asset grants to
			evaluating the comparability of the results over time. It is an indicator widely
	Income and other
			used in the markets to compare the results of different companies.
				Measure of the investment effort of each period in assets of the different
				businesses, including accrued and unpaid investments. It allows to know the
Investments (CAPEX)	Investments in intangible assets + Investments in	Euros 1,378 million = 209	Euros 1,119 million = 211 allocation of its resources and facilitate the comparison of the investment
property, plant & equipment	+ 1,169	+ 909	effort between periods. It is made up both of maintenance and growth
				investments (funds invested in the development or for the expansion of the
				Group's activities).
	"Non-current financial liabilities" + "Current	Euros 15,550 million =	Euros 16,301 million =	Measure of the Group's level of financial debt. Includes current and non-
Gross financial debt	current concepts. This indicator is widely used in capital markets to compare
financial liabilities"	12,616 + 2,934	13,999 + 2,302
	different companies.
	Gross financial debt - "Cash and cash			Measure of the Group's level of financial debt including current and non-
	Euros 11,171 million =	Euros 12,070 million =	current items, after discounting the cash and cash equivalents balance and
Net financial debt	equivalents" - "Derivative financial assets
15,550 - 4,106 - 273	16,301 - 3,985 - 246	asset derivatives linked to financial liabilities. This indicator is widely used in
	associated with financial liabilities"
			capital markets to compare different companies.

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Disclaimer

This document is the property of Naturgy Energy Group, S.A. (Naturgy) and has been prepared for information purposes only and contains inside information per the 2014 market abuse regulation.

This communication contains forward-looking information and statements about Naturgy. Such information can include financial projections and estimates, statements regarding plans, objectives and expectations with respect to future results, operations, capital expenditures or strategy.

Naturgy cautions that forward-looking information is subject to various risks and uncertainties, difficult to predict and generally beyond the control of Naturgy. These risks and uncertainties include the current volatile market and regulatory uncertainty, as well as those identified in the documents containing more comprehensive information filed by Naturgy and their subsidiaries in the different supervisory authorities of the securities markets in which their securities are listed and, in particular, the Spanish National Securities Market Commission.

Except as required by applicable law, Naturgy does not undertake any obligation to publicly update or revise any forward-looking information and statements, whether as a result of new information, future events or otherwise.

This document includes certain alternative performance measures ("APMs"), as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority in October 2015.

This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the restated text of the Securities Market Law approved by Royal Legislative Decree 4/2015, of 23 October and their implementing regulations. In addition, this document does not constitute an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, in any other jurisdiction.

The information and any opinions or statements made in this document have not been verified by independent third parties; therefore, no warranty is made as to the impartiality, accuracy, completeness or correctness of the information or the opinions or statements expressed herein.

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