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Financial results

January-June 2021

28 July 2021

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The interim condensed consolidated financial statements, forming part of the financial information presented in this document, were subject to a limited review and granted an unqualified opinion by the auditors. This information was drawn up in accordance with International Financial Reporting Standards (IFRS).

For the purpose of facilitating the understanding of the information provided in this document, certain alternative performance measures have been included. Their definition can be found at: www.ree.es.

Contents
1.	Main highlights.................................................................................................................	5
2.	Red Eléctrica: Main aggregates .......................................................................................	7
3.	Earnings performance....................................................................................................	11
4.	Investments...................................................................................................................	15
5.	Cash flow and balance sheet performance ...................................................................	16
6.	Significant events in first half and thereafter ...............................................................	20
Appendix 1. Consolidated financial statements (RE Group)..................................................	22
	Consolidated income statement ...........................................................................	23
	Consolidated balance sheet ..................................................................................	24
	Consolidated statements of cash flows ................................................................	26
	Financial calendar .................................................................................................	27
Appendix 2. Sustainability certifications .............................................................................	27

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Financial Results. January-June 2021

5

1.Main highlights

National electricity system and energy transition

At the end of June, the System Operator sent the transmission network development proposal to the Ministry of Ecological Tran- sition, which included the considerations received from the Autonomous Communities. This step represents significant progress towards the approval process for the 2021-2026 plan, which identifies the development needs of the new infrastructure necessary to make the energy transition possible. At this time, the consolidation phase began with an estimated duration of 4 months, prior to the final approval phase that will conclude this process.

The Spanish National Markets and Competition Commission (CNMC) approved the new regulatory framework for access and connection of electricity production facilities to transmission and distribution networks, a regulation of vital importance for the orderly development of the integration of renewable energies.

On 20 May, the first Spanish Climate Change and Energy Transition Act was published (Spanish Law 7/2021). The Act aims to facilitate the decarbonisation of the Spanish economy and its transition to a circular model that guarantees the rational use of re- sources, the adaptation to climate change and the implementation of a sustainable development model that generates decent employment and contributes to reducing inequalities. The achievement of these objectives will entail significant efforts on the part of the companies in the sector and, in particular, Red Eléctrica, which is positioned as the backbone of the energy transition in Spain.

In relation to the performance of the electricity sector, the participation of renewable energies in covering the electricity demand in this first half of the year it is noteworthy of mention, whereby 51.4% of the energy generated in the country was from renewable energy sources. In addition, 73.5% of the electricity generated was produced from sources that do not emit CO2. Fur- thermore, the demand for electricity increased by 5.1% compared to the first six months of 2020.

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