Results 1H 2020 Contents 02. R ecovery 03. R einvention 01. R - PowerPoint PPT Presentation

Results 1H 2020

Contents 02. R ecovery 03. R einvention 01. R esistance 05. 04.

1. Priorities and contingency plan for COVID-19 Enagás priorities in this situation

1. Priorities and contingency plan for COVID-19 Contingency plan

1. Priorities and contingency plan for COVID-19 We work to continue to normally provide an essential service: the supply of natural gas The Spanish Gas System has operated normally despite the adverse conditions, without incidents, whether occupational, technical or operational. The operation of the gas system has been carried out efficiently and with absolute flexibility.

1. Priorities and contingency plan for COVID-19 We work to continue to normally provide an essential service: the supply of natural gas The Gas System has operated with total normality tanker 100 % 100 % offloading regasification +19% +18% utilisation 78% of 126 for tank truck loading the total capacity, methane tankers + 4 % +21%

1. Priorities and contingency plan for COVID-19 We are working to ensure the operation and supply of natural gas: international affiliates US GREECE CHILE        MEXICO PERU TAP         

Contents 02. R ecovery 03. R einvention 01. R esistance 05. 04.

2. Results 1H 2020 Main P&L highlights Headline figures € 479.8 M € 236.3 M € 76.2 M 1H 2020 Cash flow key figures 1H 2020 vs 1H 2019 € 332.9 M € 806.7 M Balance sheet 2022 € 4,090 M € 2,486 M 80% Domestic gas demand -11.3% -9.0% -19.7%

2. Results 1H 2020 Results 1H 2020: Income statement Results on track to reach the year's goal in terms of profit after tax ~ € 440M Millions of euros ( € ) 1H 2020 1H 2019 Var. % 01 01 02 02 03 03 04 04 05 05

2. Results 1H 2020 Solid financial structure and high liquidity position High liquidity position Confirmed BBB+ ratings with stable outlook Leverage and liquidity 1H 2020 2019 Liquidity 1H 2020 2019 1H 2019

2. Results 1H 2020 Financial structure No significant maturities until 2022 Average life of debt 4.6 years Debt type Debt maturities ( € M) 7% 15% 60% 18% 27% 73%

2. Results 1H 2020 Cash flow and net debt evolution € 466M € 372M € 4,090M € 807M € 6M € 3,755M € 333M € 705M € 133M € 177M Fixed-rate debt higher than 80%

2. Results 1H 2020 2H 2020 outlook and annual targets The results of the stress tests carried out by the company allow us to reaffirm all our objectives and commitments established for 2020.

2. Results 1H 2020 Variation in conventional demand in Spain 2020 compared to 2019 Demand for conventional gas fell by over 20% in April June January February March April May Since the end of May, a progressive recovery of gas demand in Spain has begun, which is expected to consolidate in the second half of the year. Source: Enagás Technical System Manager

2. Results 1H 2020 Tallgrass Energy Tallgrass provides a single platform with a diversified asset base and long-term cash flows under contract • • • • • • • • • • • • Average expected dividend for Enagás of € 135M in the period 2020-2026

2. Results 1H 2020 Tallgrass Energy: Market context and price performance Recovery of oil and natural gas prices and progressive stabilisation of market conditions (demand and production) as economies revive Recovery of oil and natural gas prices (from the lows recorded in April)

(from the lows recorded in April) Recovery of oil and natural gas prices bcfd 10 15 20 25 30 35 0 5 Appalachian (gas production basins) Tallgrass Energy: Market context and price performance Jan-14 2. Results 1H 2020 Medium-term recovery of production in the main operating basins of Tallgrass Jun-14 Nov-14 Apr-15 Utica Sep-15 Feb-16 Marcellus Jul-16 Dec-16 May-17 Oct-17 Mar-18 Aug-18 Jan-19 Jun-19 Nov-19 Apr-20 Sep-20 MMbpd Feb-21 0,50 1,00 1,50 2,00 2,50 Jul-21 - Dec-21 Jan-14 May-22 Jul-14 Oct-22 Bakken & DJ (oil production basins) Jan-15 Mar-23 Aug-23 Jul-15 Bakken Jan-24 Jan-16 Jun-24 Jul-16 Nov-24 Jan-17 Apr-25 Jul-17 Sep-25 Denver Julesburg Jan-18 Jul-18 Jan-19 Jul-19 bcfd 10 Jan-20 0 1 2 3 4 5 6 7 8 9 Rockies (gas production basins) Jan-14 Jul-20 Jun-14 Jan-21 Nov-14 Green River - Overthrust / Wind River Apr-15 Jul-21 Sep-15 Jan-22 Feb-16 Jul-22 Jul-16 Jan-23 Dec-16 Jul-23 May-17 Oct-17 Jan-24 Mar-18 Jul-24 Aug-18 Jan-25 Jan-19 Piceance Jul-25 Jun-19 Nov-19 Apr-20 Sep-20 Big Horn/Powder River Feb-21 Jul-21 Dec-21 May-22 Oct-22 Mar-23 Aug-23 Jan-24 Denver Julesburg Jun-24 Nov-24 Apr-25 Sep-25

2. Results 1H 2020 Tallgrass Energy: Market context and price performance Progressive recovery in the price of oil and natural gas from lows recorded this year Performance of the price of oil and natural gas Forward curves (07/27/2020) One-month futures (07/27/20) WTI: $41.61 /bl $47.28 /bl Price of natural gas (US$/mmBtu) Price of natural gas (US$/mmBtu) HH: $1.7/mmBtu $ 2.8 / Price of oil (US$/bl) mmBtu Price of oil (US$/bl) $43.4 bl The price of oil recovered and stabilized in July to around $ 40 / bl (WTI) from the historical lows recorded in April. The price of forward curves in the futures market discounts a recovery in prices for the remainder of the year and during the coming year.

2. Results 1H 2020 Tallgrass Energy: Main highlights 2020 Rockies Express (REX) Pony Express (PXP)         On 26 June, the Cheyenne Connector  and Cheyenne Hub projects entered into commercial operation. 

2. Results 1H 2020 Tallgrass Energy and Enagás business plan Average dividend expected by Enagás in period 2020-2026: 140 million euros

2. Results 1H 2020 Trans Adriatic Pipeline (TAP) The overall progress of the project has reached 96.4% and commercial operational start-up is expected in 4Q 2020.       In June, the subsea section of the gas pipeline was completed, the last major construction element of the project.

2. Results 1H 2020 Gasoducto Sur Peruano (GSP)

Contents 02. R ecovery 03. R einvention 01. R esistance 05. 04.

3. ESG commitment and energy transition European Hydrogen Strategy horizon 2050 Hydrogen is essential to achieve the objective of climate neutrality in Europe. Its role in the energy mix is expected to increase from the current 2% to 13-14% in 2050. European Commission Communication: “A Hydrogen Strategy for a Climate Neutral Europe” (COM (2020) 301) Investments 2050E Electrolysers        Investment in capacity of hydrogen production in the EU as a whole ~ € 470 billion in 2050

3. Compromiso ESG y transición energética Renewable gases ´ strategy in Spain and Europe Existing gas infrastructures can be adapted to transport hydrogen at an affordable cost European Hydrogen Backbone Plan   

3. ESG commitment and energy transition Positioning in the decarbonisation process Current positioning of Enagás Hydrogen and Biogas/Biomethane Hydrogen Biomethane    

3. ESG commitment and energy transition Clear commitments in the decarbonisation process Enagás Emprende Through Enagás Emprende , its Corporate Venturing initiative, Enagás accelerates and invests in innovative startups and technologies that drive the energy transition. Sustainable mobility  Energy Cleantech Efficiency New uses CO2 and Areas of  of NG sustainability interest: ydrogen Industry 4.0 Energy storage Biogas

3, ESG commitment and energy transition Enagás ’ current position Hydrogen and Biogas-Biomethane Progress in 2Q 2020: Green Crane Project   

3, ESG commitment and energy transition The EU supports Enagás in the development of 16 vehicle supply points for LNG, biogas and hydrogen Spanish corridors of the Trans- ECO-net project European Transport Network Responsible mobility with the environment   

3, ESG commitment and energy transition The EC approves 2 bunkering projects in Barcelona and Algeciras LNGHIVE2 Projects Barcelona and Algeciras CEF Call for Proposals (TRANS-EUROPEAN TRANSPORT NETWORK 2019)     LNGHIVE2 Barcelona     LNGHIVE2 Algeciras  

3. ESG (Environmental, Social and Governance) commitment ESG commitment Leadership in sustainability indices and rankings:     Transparency in financial and non-financial information:

Contents 02. R ecovery 03. R einvention 01. R esistance 05. 04.

4. Shareholder remuneration Shareholder remuneration 2020E-2026E Shareholder remuneration remains our strategic priority. The high predictability of our cash flows and robust balance sheet structure provide the room for manoeuvre to honour our commitment to our dividend policy and continue to grow sustainably in the future.

4. Shareholder remuneration Shareholder remuneration 2020E-2026E Dividend sustainable in the long term Dividend sustainable in the long term We ratify our dividend commitment until 2023 Floor • € 1.74 € 1.74 € 1.74 € 1.74 € 1.74 € 1.72 € 1.70 € 1.68 € 1.60 € 1.53 2018 2019 2020E 2021E 2022E 2023E 2023E 2024E 2025E 2026E

Contents 02. R ecovery 03. R einvention 01. R esistance 05. 04.

Conclusions