Redes Energeticas Nacionais Sa · EURONEXT:RENE
Redes Energeticas Nacionais Sa — REN – Redes Energéticas Nacionais — Investor Day (May 2024)
47 slides from Redes Energeticas Nacionais Sa's investor day presentation, May 13, 2024
Slide 1: Capital Markets Day
CAPITAL & MARKETS —
Slide 2: Disclaimer
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
Slide 3: Agenda
Agenda The imperative of the Energy Transition Reinforcing our sustainability commitments Rodrigo Costa (CEO) Enabling the Energy Transition Joao Concei¢ao (COO) Delivering sustainable profitable growth Gongalo Morais Soares (CFO) Closing remarks Rodrigo Costa (CEO) 3 REN)>4
Slide 4: The imperative of the Energy Transition
e imperative of the Energy Transition
Slide 5: The Energy Transition is imperative
CAPITAL MARKETS DAY 2024 The Energy Transition is imperative The world is The energy sector moving to tackle will play a vital role climate change 2% in the transition 1.5°C +55% +60% +600GW +87GW limit to achieve climate C02 emissions cut by 2030, Expected EU power demand Necessary wind and solar C
Slide 6: The transition will not happen without grids
CAPITAL MARKETS DAY 2024 The transition will not happen without grids Global average annual T&D investments, B$ 2022 +56% +55% 2016-22 2023-30 2031-40 2041-50 Jf Gridinvestment needs [f Europe will only ensure its energy security and deliver on its climate ambitions to accelerate and match if our po
Slide 7: Yet, the journey does not come without challenges
CAPITAL MARKETS DAY 2024 Yet, the journey does not come without challenges Lengthy Increasing Political permitting physical volatility processes i) hazards Supply Evolving Emergence chain regulatory of new constraints frameworks technologies 7 REND<
Slide 8: In the past decade, we have successfully adapted to evolving investment contexts
CAPITAL MARKETS DAY ————— Se In the past decade, we have successfully adapted to evolving investment contexts Key milestones Average investment, M€ 2015-17 Tactical M&A Inorganic gas diversification (Portgas and underground gas storage assets) Chile market entry (Electrogas) Investment grade rating
Slide 9: Positioned in two of the leading regions on the energy transition path
CAPITAL MARKETS DAY 2024 We are positioned in two of the leading regions % \ on the energy transition path | @ | Portugal >25GW ~46€/MWh Up to 30% RES capacity solar utility-scale Green H2 production cost to be installed until 2030! LCOE in Iberia2in 2022 advantage vs. Central Europe? Bs“ >30GW ~42€
Slide 10: Remain committed to our role at the center of the energy system
CAPITAL MARKETS DAY 2024 We remain committed to our role - at the center of the energy system to enable its transition We are critical for... Renewable [a capacity? Seamlessly integrating Electricity renewable capacity consumption from RES, % Guaranteeing system flexibility amid rising intermittent
Slide 11: Continue to focus on operational excellence
CAPITAL MARKETS DAY 2024 We continue to focus on operational excellence to provide a robust and reliable grid for all Quality and efficiency benchmark 7 Electricity 98.4% Electricity transmission Combined availability rate 8 - -70% Line cost — (@,, Natwatses 100% “gen Re transport Combined availabil
Slide 12: Continue to deliver reliable and consistent value to all stakeholders
CAPITAL MARKETS DAY 2024 We continue to deliver reliable and We are managing our consistent value to all stakeholders environmental footprint >4,000 ha +1M -45% replanted —_ trees of indigenous species scope 1 and 2 emissions since 2010 planted since 2010 reduction vs. 2019 We are contributing to o*
Slide 13: Reinforcing our sustainability commitments
Reinforcing our sustainability commitments Stepping-up ESG targets Fostering people excellence REN >< Our strategy 2024-27 —A Enabling the Energy Transition Executing on the electricity transmission growth Unlocking the role of green gases Consolidating growth in Chile Delivering sustainable profita
Slide 14: Reinforcing our sustainability commitments
x f # Aes Costa Reinforcin
Slide 15: Our strategy 2024-27: Reinforcing our sustainability commitments
2024-27 Our strategy REN)4 —_ Reinforcing our sustainability commitments Stepping-up ESG targets Fostering people excellence » REND4
Slide 16: Will continue to accelerate our environmental commitment
CAPITAL MARKETS DAY 2024 We will continue to accelerate our environmental commitment Our core commitments Our path to achieve it @ | Scope 1 and 2 emissions reduction target by 2030 vs. 2019 (vs. 50% 2021's -60% CMD target) Fleet electrification (% of total) by 2030 80% Renewable capacity for self-c
Slide 17: Improving our impact on society with new and reinforced commitments
CAPITAL MARKETS DAY 2024 We are focused on improving our impact on society with new and reinforced commitments Social >1/3 100% 3Me€ women in first-line employees investment management trained in ESG in communities positions by 2030 by 2030 by 2027! Governance ESG asa key 100% performance metric acr
Slide 18: Foster internal people excellence across culture, talent and ways of working
CAPITAL MARKETS DAY 2024 We will continue to foster internal people excellence across culture, talent and ways of working to attract and retain the capabilities needed People excellence goals {e) al Culture People-oriented environment with a safety-first mindset Zero Tolerance for accidents with fat
Slide 19: Enabling the Energy Transition
“Joao Concei¢ao Enabling the Energ LIOR. «.. .
Slide 20: Our strategy 2024-27: Enabling the Energy Transition
2024-27 Our strategy REN)4 =7 Enabling the Energy Transition Executing on the electricity transmission growth Unlocking the role of green gases Consolidating growth in Chile 2» REND4
Slide 21: We will step-up our investment
CAPITAL MARKETS DAY 2024 ~10% We will step-up our investment ~25% 1.5-1.7B€ Up to 70% annual avg. investment vs. the 2021-23 cycle to be invested in the 2024-27 cycle @ Electricity @ Gas @ International 2 REND<
Slide 22: Enhance and expand the electricity grid in Portugal
CAPITAL MARKETS DAY 2024 We will further enhance and expand the electricity grid in Portugal, recognizing its critical role as the Energy Transition backbone Electricity transmission Annual average domestic electricity investment Mé€/year 0, Up to +50% Enabling the integration of 240-280 > additiona
Slide 23: Connecting Portugal's new renewable projects
CAPITAL MARKETS DAY 2024 We will continue to connect Portugal’s ambitious portfolio of new renewable projects while expanding grid capacity to foster economic growth 2024-27 investment plan for electricity grid expansion Technology Capacity to be connected FRA 3 -5GW direct agreements with solar PV
Slide 24: Solar agreements will speed up the Energy Transition
CAPITAL MARKETS DAY 2024 Solar agreements will allow us to speed-up the Energy Transition, with a low risk profile, in line with the traditional regulatory framework Electricity transmission — Solar Agreements 32 direct agreements signed with solar promotors since 2021 (two waves) Similar returns to
Slide 25: Preparing to enable offshore wind in the future energy mix
CAPITAL EE MARKETS DAY 20 Long-term, we are preparing to enable the introduction of offshore wind in the future energy mix Electricity transmission — Offshore Wind Dedicated floating Windfloat offshore team \ In 2019, REN successfully Strategically preparin in place by 2024 connected Portugal's firs
Slide 26: Strengthen the gas infrastructure to ensure security of supply
CAPITAL MARKETS DAY 2024 We will strengthen the gas infrastructure to ensure security of supply and be ready to enable green hydrogen and biomethane ramp-up Gas infrastructure Annual average investment in gas infrastructure Committed to ensuring Mé€/year security of supply through Up to +125% > 5 0%
Slide 27: Proactively unlock the green gases opportunity
CAPITAL MARKETS DAY 2024 We are committed to proactively unlock the green gases opportunity by leveraging the current gas infrastructure and develop new dedicated one Gas infrastructure or Pursuing the development of regional H2 valleys Developing 2 new H2-ready storage caverns to ensure Green hydro
Slide 28: Manage execution risk across our value chain
CAPITAL MARKETS DAY 2024 We will manage execution risk by mitigating inflation and volume risks across our value chain and proactively engaging with our stakeholders We are taking concrete steps to address and mitigate risks es ®) Reinforcement of procurement Lean tendering long-term strategic proce
Slide 29: Leverage digitalization and innovation to empower operations
CAPITAL MARKETS DAY 2024 We will leverage digitalization and innovation to enable and empower our operations Innovation strategy pillars and key initiatives a8 9 Quality and Smart and Sustainable business continuity digital networks development Digital tools to Drone, satellite and linear TransForm
Slide 30: A stable and fair regulatory framework is essential
CAPITAL MARKETS DAY 2024 A stable and fair regulatory framework is essential to enable and promote the Energy Transition Domestic core business Regulatory models Electricity transmission 2022-25 revenue-cap (TOTEX) Natural gas and green gases 2024-27 price-cap (OPEX) and rate-of-return (CAPEX) Sourc
Slide 31: Consolidate Chile's footprint through stable organic growth
CAPITAL MARKETS DAY 2024 We are committed vice to consolidate neta Chile’s footprint through stable organic growth Y ae International business uble a Biobio Chilean footprint © Existing Upcoming Source: National Green H2 Strategy (2020); Hydrogen Council; CEN (Coordinador Eléctrico Nacional), REN Av
Slide 32: Delivering sustainable profitable growth
q = \Goncalo Morais Soares Delivering sustainable of growth
Slide 33: Our strategy 2024-27: Delivering sustainable profitable growth
REN)4 Our strategy 2024-27 Delivering sustainable profitable growth Growing our asset base sustainably Maintaining strong credit ratings Ensuring attractive returns to our shareholders 3 REND4
Slide 34: Outperformed 2021-24 Business Plan targets and provided solid returns
CAPITAL MARKETS DAY 2024 We successfully outperformed 2021-24 Business Plan targets and provided solid returns to investors Avg. 2021-23 results outperformed last BP yearly targets » Total shareholder return? (2019-23) Yearly targets Avg. 2021-23 35% 30% EBITDA 450-470ME © 487M€ i Recurrent net prof
Slide 35: Energy Transition will allow us to drive asset base growth
CAPITAL MARKETS DAY 2024 Enabling the Energy ‘Wpa pre Transition in Portugal —s eres ° ° Total assets, BE 4.0 3.9 ~4,3-4.4 and Chile willallowus _ to drive asset base g rowt h Domestic regulated assets! + Solar agreements + Wi Electricity transmission Chilean assets? ~0.2 ~0.2 ~0.3 Wi Gas transport
Slide 36: Domestic RAB following the Energy Transition acceleration
CAPITAL MARKETS DAY 2024 We see our domestic RAB following the Energy Transition acceleration, with the 2024-27 cycle as an inflection point Average RAB at reference costs, BE -2% p.a. —_———-+s Up to +1% pa. Uptake in renewables ——— capacity and impending 3.8 green gases acceleration 3.6 3.5 3.6-3.7
Slide 37: Evolving our story, diversifying and de-risking our core business
CAPITAL MARKETS DAY 2024 We are also evolving our story, diversifying and de-risking our core business through increased investments in solar, green gases, and international Additional levers of growth Share of organic investment @ 2018-23 avg. @ 2024-27 avg. = HK, eo) Delivering on direct Unlocking
Slide 38: Our path will unlock EBITDA and net profit growth
CAPITAL MARKETS DAY 2024 Our path in this strategic cycle will unlock EBITDA and net profit growth Up to +11% —_ 483 487 500-540 Annual avg. EBITDA, M€ Up to +9% Adjusted annual ~ yy avg. net profit’, Me 112 110 105-120 2018-20 2021-23 2024-27 1. Adjusted for non-recurring impacts from incentives an
Slide 39: Maintain our financial strategy focused on stability and prudency
CAPITAL MARKETS DAY 2024 We will maintain our financial strategy, with focus on stability and prudency, to protect net profit Om Optimize cost of debt and maturity profile aN ) Protect net profit Credit rating Interest and exchange rate risk Green funding Strictly committed to investment grade ey ;
Slide 40: Reinforcing our solid credit metrics
CAPITAL MARKETS DAY 2024 We are reinforcing our solid credit metrics consistent with investment grade rating FFO/Net debt! 12-14% 13-15% 2724 > 2.6-2.5 Net debt, BE 2021-23 2024-27 Liquidity Funding needs fully covered for the next >24 months Maturity >5 years debt maturity from 2025 onwards 1. Rang
Slide 41: Predictable, attractive and sustainable dividend policy
CAPITAL MARKETS DAY 2024 We have a predictable, attractive and sustainable dividend policy, and we are increasing our dividend per share 2% per annum until 2027 2 Dividend (|| Growing asset base €/share Improved net income Coa Stable dividend per share 0.154 100, , Strengthened 9 financial position
Slide 42: Firm commitment to strong fundamentals
CAPITAL MARKETS DAY 2024 Firm commitment to strong fundamentals, fueled by significant investment growth to enable the Energy Transition JV Vv Vv NA Vv Significant investment increase driving asset base growth Managing portfolio and execution risk carefully Stable and supportive regulatory framework
Slide 43: Closing remarks
Closing remarks
Slide 44: Our strategy 2024-27 summary
Reinforcing our sustainability commitments REN >< Our strategy 2024-27 4 Enabling the Energy Transition Delivering sustainable profitable growth « REN)D4
Slide 45: Up to the challenge
CAPITAL MARKETS DAY 2024 We are up to the challenge We are delivering on our commitments, recognizing we are a key force in driving the Energy Transition — investing to enable electrification efficiently and stably, delivering solid returns to investors, and serving societal interests ry) We have a
Slide 46: Muito obrigado!
Muito obrigado!
Slide 47: REN Capital Markets Day 2024
REN >< CAPITAL MARKETS DAY 2024
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