Iren S.p.a. · MIL:IRE
Iren — Non-Deal Roadshow (April 2025)
36 slides from Iren's roadshow presentation, April 2025
Slide 1: Investors' Presentation April 2025
⦿ COMPANY STRATEGY ⦿ FY 2024 RESULTS INVESTORS’ PRESENTATION ⦿ ANNEXES BUSINESS PLAN April 2025 ⦿ ANNEXES FY 2024 RESULTS
Slide 2: A new capital allocation to support the strategic vision
A new capital allocation to support the strategic vision Green Service transition quality ⦿ CAPITAL ALLOCATION REVIEW 1) Reallocation of investments with a selective approach to profitability 2) Financial discipline aimed at maintaining current rating levels 3) Extended visibility of dividend policy
Slide 3: Prioritizing organic investments in regulated activities
Prioritizing organic investments in regulated activities... CAPEX ‘24-’30 ⦿ MAIN CHANGES VS. OLD PLAN 6% 1) Investments refocusing New plan Old plan ’24-’30 ‘24-’30 2) Increased investment in organic growth of regulated businesses 8.2 B€ 9.1B€ 3) Investments in renewables supported by incentives 4)
Slide 4: We reallocate investments for a sound and visible plan
...we reallocate investments for a sound and visible plan B€ 4.9 Regulated* Development 80% 3.3 60% Cumulated capex Corporate 8.2 B€ Market Waste Energy Networks 2024-2027 2028-2030 40% Maintenance 20% Unregulated ⦿ LOW EXECUTION ⦿ HIGH PREDICTABILITY ⦿ HIGH RISK OF RESULTS FLEXIBILITY *Including in
Slide 5: Sustainability drives future investments
Sustainability drives future investments 24% Water resources 35% ⦿ 5 SUSTAINABILITY FOCUS AREAS DECLINE OUR INDUSTRIAL STRATEGY, Circular economy Decarbonization ~70% IN LINE WITH THE CSRD Resilient cities Sustainable Capex* People * Eligible for EU Taxonomy 30% Water leaks Material recovery Carbon
Slide 6: Macrotrend and main development drivers
Macrotrend and main development drivers BUSINESS UNITS MACRO TREND IREN’S ACTIONS • Water resource scarcity • Sustainable water management NETWORKS • Electrification of consumption • Power grid upgrading • Quality of service • Performance improvement • Circular economy • Material and energy recovery
Slide 7: 2023-2027 EBITDA bridge
2023-2027 EBITDA bridge Cagr +7% €M 37 1,549 100 0 215 1,197 FY ’23 Networks Waste Energy Market 2027 Exp • organic growth • organic growth • 2023 energy • higher customer scenario base and EE • regulatory update • M&A (Sienambiente, normalisation clients’ margins collection, EGEA) • synergies • org
Slide 8: Sound and sustainable growth
Sound and sustainable growth CUMULATED CAPEX 8.2 B€ of which 600M€ flexible over the three-year period 2025-2027 EBITDA: Cagr 6% €M GROUP NET PROFIT: Cagr 7% €M FINANCIAL LEVERAGE 3.5x ~1,800 >400 Financial ~1,550 360 3.3x flexibility 255 3.1x 1,197 2.7x 2023 2027 2030 2023 2027 2030 2023 2027 2030
Slide 9: FY 2024 Results
⦿ COMPANY STRATEGY ⦿ FY 2024 RESULTS INVESTORS’ PRESENTATION ⦿ ANNEXES BUSINESS PLAN ⦿ ANNEXES FY 2024 RESULTS
Slide 10: Key Highlights
KEY HIGHLIGHTS EBITDA (+6.5% YoY) and Organic e inorganic Net debt/EBITDA at DPS proposal at Net profit (+5% YoY) growth for 35€M overall 3.2x after almost 12.83€c/share (+8% YoY) at EBITDA level 950€M of investments INVESTORS’ PRESENTATION STRATEGY FY 2024 RESULTS ANNEXES 10 10
Slide 11: Sustainable growth continued throughout the year
SUSTAINABLE GROWTH CONTINUED THROUGHOUT THE YEAR Green transition Local presence Service quality Municipalities served in waste collection Stores’ Customer Satisfaction Index Carbon Intensity On track On track On track 335 552 gCO2/kWh # # 9,9 315 436 9,8 FY '23 FY '24 FY '23 FY '24 FY '23 FY '24 So
Slide 12: FY24 Results at a Glance
FY24 RESULTS AT A GLANCE EBITDA EVOLUTION €M +6.5% FY '23 FY '24 Δ Δ% Revenues 6.490 6.043 -447 -7% (€M) EBITDA 1.197 1.274 77 6.5% 103 11 59 1,274 1,197 -37 -59 EBIT 464 520 55 12% Energy Eff. Generation & others Group net profit 255 268 14 5% -96 Technical capex 867 830 -36 -4% Net Financial Posit
Slide 13: EBITDA to Group Net Profit Reconciliation
EBITDA TO GROUP NET PROFIT RECONCILIATION €M FY '23* FY '24 Δ Δ% EBITDA 1197 1274 77 6,5% ▪ Depreciation increase linked to capex and new companies’ integrations (12€M) D&A -601 -655 ▪ Positive variation in other provisions mainly Provisions to bad debt -71 -74 due to one-off for Sostegni ter Decree
Slide 14: Net Financial Position Evolution (FY 2024 vs FY2023)
NET FINANCIAL POSITION EVOLUTION (FY 2024 VS FY2023) +149 €M (+4%) €M 179 53 4.083 3.934 112 830 389 109 -249 -1.274 Operating cash flow levered -1,025€M FY ’23 Ebitda Other Superbonus Changes Capex M&A Dividends MtM FY ’24 operational 110% & tax in WC Derivatives changes credits ▪ Operating cash fl
Slide 15: 2025 Consolidation and Strengthening of All Businesses
2025 CONSOLIDATION AND STRENTHENING OF ALL BUSINESSES ▪ Consolidation from January ’25 ▪ Company full control after minority buy-out ▪ BoD approved the exercise of the call ▪ Expected increase at Net Profit level ~20€M option from 31 March for going to 100% ▪ Management rationalization and costs ▪ E
Slide 16: Closing Remarks
CLOSING REMARKS INDUSTRIAL OVERVIEW GUIDANCE 2025 ▪ Networks: investments foreseen in the industrial plan confirmed ▪ Waste: further development in collection and improvement of ▪ EBITDA 1,340 – 1,360M€ plants profitability ▪ Gross technical capex: ~0.9€B ▪ Energy: high hydro reservoir and new small
Slide 17: Business Plan
⦿ COMPANY STRATEGY ⦿ FY 2024 RESULTS INVESTORS’ PRESENTATION ⦿ ANNEXES BUSINESS PLAN ⦿ ANNEXES FY 2024 RESULTS
Slide 18: Synergies and operational efficiencies
Synergies and operational efficiencies SYNERGIES AND EFFICIENCIES ’24-’30 Rationalization activity: 1. Turnover and reskilling 2. Specialization hubs 31% 3. Streamlining of sales and engineering functions 4. Unification of call centre and customer billing 130 M€ 5. Integration of acquired companies
Slide 19: Growth already visible in the first part of the plan
Growth already visible in the first part of the plan EBITDA NET PROFIT 2024-2030 GROWTH PILLARS: 6% CAGR M€ 7% CAGR ⦿ Organic growth: >+550 M€ M€ ⦿ Inorganic growth: +95 M€ 7% CAGR 9% CAGR ⦿ Efficiencies and synergies: +130 M€ ~1,800 >400 ⦿ Asset rotation: -40 M€ 1,550 360 1,450 320 ⦿ Scenario and r
Slide 20: Net debt evolution
Net debt evolution NET DEBT TIME EVOLUTION 4.9 Net debt (B€) B€ B€ 4.8 1.6 4.9 3.9 0.3 7.8 (0.8) 3.9 3.5x Maximum threshold Financial flexibility consistent with current ratings’ 3.3 3.1 parameters 2.7 Net debt/EBITDA (x) (7.9) 2023 Operational Net capex Dividends Asset disposal Other 2030 cash flow
Slide 21: Dividend policy with floor until 2027
Dividend policy with floor until 2027 DIVIDEND POLICY maximum between: ⦿ 60% PAY-OUT of ordinary Group’s net income ⦿ 8% DPS growth until 2027 FLOOR: 8% CAGR 16.16 Dividend per share, c€ 14.97 13.86 12.83 11.88 DIVIDEND PAYOUT RATIO 60% 2023 2024 2025 2026 2027 2028 2030 INVESTORS’ PRESENTATION STRA
Slide 22: Networks: service quality and investments drive growth
Networks: service quality and investments drive growth WATER ELECTRICITY GAS CAPEX ⦿ Network upgrading ⦿ Network upgrading ⦿ Maintenance of ⦿ Increased 13% distribution network investments in ⦿ 4 new purification plants ⦿ 5 new primary substations distribution ⦿ Network replacement networks 58% ⦿ Op
Slide 23: Waste: collection development and energy recovery
Waste: collection development and energy recovery TREATMENT AND COLLECTION CAPEX DISPOSAL ⦿ Territorial expansion through ⦿ Waste treatment facilities ⦿ EGEA consolidation in tenders and consolidations, not development (6 new plants) collection activity 36% only in historical territories 1.6B€ ⦿ Ene
Slide 24: Energy: decarbonization of energy generation
Energy: decarbonization of energy generation CCGT, THERMO ENERGY RES AND HEAT EFFICIENCY CAPEX ⦿ Development of ⦿ Air cooler installation on ⦿ Rebuilding activity on ⦿ EGEA consolidation in greenfield renewable CCGT private and public district heating and public 19% capacity sector lighting ⦿ Turbig
Slide 25: Market: long term valorisation of customers
Market: long term valorisation of customers CLIENTS SERVICES CAPEX ⦿ Increasing EE clients due to ⦿ Boost cross-selling of Iren Plus ⦿ EGEA customer base electrification of consumptions products and services for increased consolidation household loyalty Medium and long term PPA with Consolidation of
Slide 26: Regulatory framework
Regulatory framework WASTE INTEGRATED SERVICE GAS ELECTRICITY WATER AND REGULATED PLANTS Regulatory period 6 years (2020 – 2025) 4 years (2024 – 2027) 6 years (2024 – 2029) 4 years (2022 – 2025) WACC methodology 6 years (2022 – 2027) 6 years (2022 – 2027) 6 years (2024 – 2029) 6 years (2022 – 2027)
Slide 27: Industrial KPIs
Industrial KPIs 2023 2027 2030 Waste collected (Mton) 2.1 2.7 3.0 Waste treated in Iren’s plants (Mton) 2.7 3.9 4.4 WTE’s electricity sold (TWh) 0.5 0.5 0.8 Hydro production (TWh) 1.1 1.3 1.3 Solar and Wind production (TWh) 0.2 1.0 2.4 Thermo and CCGT production (TWh) 6.9 6.4 2.9 Heat sold (TWht) 2.
Slide 28: Business plan's energy scenario
Business plan’s energy scenario 2023 2027 2030 PUN (€/MWh) 127.4 98.6 94.6 PSV (€/MWh) 42.3 28.3 25.5 ETS (€/Ton) 83.5 102 116 Clean spark spread Iren 5.0 3.0 2.0 (€/MWh) INVESTORS’ PRESENTATION STRATEGY FY 2024 RESULTS ANNEXES 28 28
Slide 29: Networks concessions
Networks concessions GAS WATER ELECTRICITY CONCESSIONS CONCESSIONS CONCESSIONS ATEM EXPIRY AREA EXPIRY AREA EXPIRY Genova 1 Expired Piacenza 2040 Torino 2030 Parma Expired Reggio Emilia 2043 Parma 2030 Reggio Emilia Expired Genova 2032 Vercelli 2030 Vercelli Expired Parma1 2027 Piacenza 2 - Est Expi
Slide 30: Concessions
Concessions HYDROELECTRIC COLLECTION CONCESSIONS WASTE CONCESSIONS HYDROELECTRIC AREA POWER (MW) EXPIRY AREA EXPIRY PLANT Piemonte 1 Pont Ventoux-Susa 157 2034 Parma 2037 Expired 2010 Piemonte 2 Valle Orco e S. Mauro 300 Piacenza 2037 PPP proposal S. Lorenzo, Moncalieri, Expired Piemonte 3 25 >2042
Slide 31: Annexes FY 2024 Results
⦿ COMPANY STRATEGY ⦿ FY 2024 RESULTS INVESTORS’ PRESENTATION ⦿ ANNEXES BUSINESS PLAN ⦿ ANNEXES FY 2024 RESULTS
Slide 32: Networks: Strong growth led by capex and regulatory update
NETWORKS NETWORKS NETWORKS Strong growth led by capex and regulatory update EBITDA EVOLUTION GROSS CAPEX €M +28% 356 +2% 363 45 43 16 13 478 -4% 74 85 87 +2% 375 226 233 +3% (€M) FY '23 FY '24 Water Electricity Gas FY ’23 Water Electricity Gas FY ’24 RAB ▪ Allowed revenues grown by 94€M thanks to: +
Slide 33: Waste: Collection activities more than offset lower plants' margins
NETWORKS WASTE Collection activities more than offset lower plants’ margins EBITDA EVOLUTION GROSS CAPEX €M +4% 202 -12% 39 178 245 256 112 -28 99 -12% 90 79 -12% (€M) FY '23 FY '24 Collection Treatment & Disposal FY ’23 Collection Treatment & disposal FY ’24 WASTE MANAGED ▪ Strong growth in collect
Slide 34: Energy: Downtrend price scenario affected the profitability
NETWORKS ENERGY Downtrend price scenario affected the profitability HEAT SOLD EBITDA EVOLUTION €M -25% +8% 2,277 +9% 2,100 379 20 -17 -62 283 -37 (GWht) FY '23 FY '24 FY ’23 RES Heat CCGT & thermo Energy efficiency FY ’24 ELECTRICITY SOLD ▪ RES benefited from 1,457GWh of hydro production and new sol
Slide 35: Market: Excellent commercial strategy performance
NETWORKS MARKET Excellent commercial strategy performance in a competitive scenario EBITDA EVOLUTION FINAL CLIENTS’ VOLUMES €M +30% +12% 5,4 -7% 4,9 59 +9% 6 257 755 704 -6 198 (TWh) (Mcm) FY ‘23 FY ‘24 FY ‘23 FY ‘24 POWER GAS FY ’23 Electricity Gas Iren Plus & Others FY ’24 CUSTOMER ▪ Retail client
Slide 36: Iren at a glance
Iren at a glance National player in District Heating volumes with 102 Mcm 20% EBITDA made by: ~70% regulated and National player in the water semi-regulated management with 3.0 M EBITDA FY 2024 inhabitants served activities 1.3 B€ ~30% unregulated activities (mainly energy National player in electri