REN Redes Energeticas Nacionais SGPS S A : Positive result supported by good operational performance

• Renewable energy supplied 60.6% of consumption in 2023, a record in the Portuguese energy system and among the best in Europe
• EBITDA of €514.0M (+5.5%) and Recurring Net Profit of €125.0M (+15.1%)
• CAPEX increases to €301.5M (+49.6%), reflecting REN's role in the energy transition
• Net debt decreased by 4.8% to €2,421.2M

REN - Redes Energéticas Nacionais recorded a solid operational performance in 2023, both domestically and internationally.

EBITDA increased by 5.5% to €514.0M in 2023, as a result of the improvement in domestic activity (+€19.3M), where a reduction in operating costs stands out, as does the positive contribution of international activity (+€7.4M).

Net income was €149.2M, with recurring net profit reaching €125.0M (+15.1% than in 2022). This performance is the result of the improvement in operating activity (EBITDA +€26.7M) and financial results (+€3.4M), despite the increase in the average cost of debt. Additionally, it reflects non-recurring effects, namely, the recovery of revenues from the international activity and tax impacts.

The increase in operational activity was paired with a 4% growth in internal teams, with the company's current staff increasing to 748 employees.

The strong increase in CAPEX, to €301.5M (+49.6% compared to the previous year), reflects REN's focus and commitment to the energy transition and its support for the country's energy policy. Transfers to RAB also accelerated in 2023, with a growth of €59.3M (+36.3% compared to the previous year), with the correction of a few project delays recorded in 2022.

Net debt (excluding rate adjustments) decreased by 4.8% to €2,421.2M, despite the average cost of debt rising to 2.5% (1.8% in 2022). In February 2024, REN launched its second issuance of green bonds, in the amount of 300 million euros, with a maturity of eight years and a demand seven times higher than supply.

In 2023, electricity consumption remained relatively stable (50.7 TWh) compared to the previous year, while natural gas consumption decreased by 20.7% (to 49.0 TWh), the lowest number since 2014. Energy from renewable sources accounted for 60.6% of the total energy supply (49.3% in 2022) - a record year in Portugal - broken down into 25% wind power, 23% hydropower, 7% solar energy, and 6% biomass.

It is worth highlighting the 43% growth (compared to the previous year) in solar energy generation, with REN playing a key role in the process of integrating these renewable sources into the Portuguese national electricity system, enabling the achievement of the transition to renewable energy sources.

Sustainability continued to be one of REN's priorities in 2023. The company updated its approach after conducting a new stakeholder consultation, directing efforts to combat climate change, investing in Natural, Human, and Social capital, and adopting responsible governance practices.

The adoption of the Integrated Annual Report model reflected the alignment with the international guidelines for reporting non-financial information, and the short-term targets related to direct and indirect emissions, established by REN, were approved by the Science Based Target Initiative.

The investment and performance made in the three ESG dimensions continued, in 2023, to be recognised by the main sustainability ratings.

Taking into account the 2023 results, at the General Meeting of Shareholders to be held on 9 May, REN's Board of Directors will propose the payment of a dividend of nine cents per share, maintaining its annual remuneration plan of 15.4 cents per share paid in two tranches.