Iren S.p.a. · MIL:IRE
Iren — Exane BNP Paribas Virtual Roadshow 2021
21 slides from Iren's conference presentation, Apr 21, 2021
Slide 1: Iren Presentation - Exane Event
IREN PRESENTATION EXANE EVENT 21st April 2021
Slide 2: A year of growth despite the pandemic
FY 2020 A year of growth despite the pandemic KPIs EBITDA BRIDGE (m€) m€ FY '19 FY ' 20 Δ Δ% +1.1% +5.7% Revenues 4,275 3,725 -550 -12.8% Ebitda 917 927 10 1.1% 917 46 1 907 20 927 858 14 15 Ebit 452 416 -36 -8.0% (59) (27) Group net profit 236 235 -1 -0.4% Tech. Capex 524 685 161 30.7% FY '19 One o
Slide 3: Main 2020 takeaways and 2021 guidance
FY 2020 Main 2020 takeaways and 2021 guidance MAIN FY 2020 TAKEAWAYS 2021 EXPECTATIONS Ebitda increase despite pandemic and several positive one-offs Organic growth leveraging on further capex acceleration reported last year Energy scenario: recovery in volumes and prices Negative Covid impact o
Slide 4: Strengthening our local leadership…
BP@2025 Strengthening our local leadership… We continue to act in order to improve our leading position as multi-business operator in our reference areas 3 reference regions with more than 7 million inhabitants served Geographic expansion thanks to M&A transactions 4
Slide 5: … to go national
BP@2025 … to go national Top operator for the widest 1 st n a t i o n a l p l a y e r i n range of high value-added 1 st o p e r a t o r i n d i s t r i c t Corepla plastics selection products and services sold heating and in plasmix treatment to our clients The current national leadership in specif
Slide 6: Multicircle economy
BP@2025 Multicircle economy We overcome the traditional circular economy concept to emphasize our multi-business industrial approach, in which different activities share the value of efficient and conscious use of resources COLLECTION TREATMENT & DISPOSAL WATER CYCLE DISTRICT HEATING 6
Slide 7: Business Plan capex plan
BP@2025 Business Plan capex plan 61% of investments in BP are related to Sustainable projects 250 200 3.700 900 600 1,050 685 FY '20 Networks Waste Energy Market Corporate BP Assumptions Strong capex plan in Network, mainly in water for the improvement of the infrastructure and the construction of n
Slide 8: Business Plan Ebitda growth
BP@2025 Business Plan Ebitda growth EBITDA BRIDGE (m€) 20 1,160 110 50 70 927 907 +63m€ capacty market +35m€ Energy scenario +30m€ DH expansion 20 +15m€ Hydro volumes +10m€ new thermo combined cycle -20m€ MSD -27m€ TEE FY '20 One off '20 Networks Waste Energy Market 2025E Growth is driven by RAB inc
Slide 9: Annexes
Annexes
Slide 10: Iren at a glance
FY 2020 Iren at a glance Energy Infrastructure Water Service Urban Waste Collection REGULATED ACTIVITIES Hydroelectric Green Certificates District Heating Urban Waste Disposal QUASI >7million REGULATED ACTIVITIES INHABITANTS IN IREN’S 3 REFERENCE REGIONS Generation Energy Market Special Waste UNREGU
Slide 11: Business Plan Ebitda growth by BU
BP@2025 Business Plan Ebitda growth by BU NETWORKS EBITDA BRIDGE (m€) 1.3b€ of Investments to significantly increase RAB by 700m€, reaching 2.93b€ by the end of 2025 444 413 Capex devoted to develop water purification plants, in order to 373 376 319 336 342 complete our circular vision also in the i
Slide 12: Business Plan Ebitda growth by BU
BP@2025 Business Plan Ebitda growth by BU ENERGY EBITDA BRIDGE (m€) Over 1b€ of capex to expand district heating, improve the flexibility 328 of generation plants and to sustain energy efficiency interventions 318 274 Significant increase in thermoelectric production thanks to the new 265 234 241 ga
Slide 13: Business Plan sustainability targets
BP@2025 Business Plan sustainability targets FOCUS AREA KPIs TARGETS 2019 2025 2035 Circular Economy Water sources Decarbonization Resilient cities People 13
Slide 14: Business Plan dividend policy
BP@2025 Business Plan dividend policy DIVIDEND POLICY* (€cent/share) Cagr +10% +5.3% 14.60 13.30 +2.7% 12.10 11.00 9.50 10.00 9.25 We are committed to deliver value to our shareholders through a combination of growth and a dividend policy of roughly 2019 2020 2021 2022 2023 2024 2025 8% DPS cagr ove
Slide 15: Debt structure and maturities
FY 2020 Debt structure and maturities INTEREST RATE DEBT STRUCTURE MATURITIES 4% 2% 12% 562 562 422 39% 45% 231 84% 59 61 14% Fixed Swap Variable Green Bonds BEI Bonds Loans 2021 2022 2023 2024 2025 2026 96% of gross debt at fixed interest rate and 4% of assimilated instruments (45% Green Bond, 14
Slide 16: Regulatory framework
BP@2025 Regulatory framework Gas Electricity Water Integrated waste collection distribution distribution service service Regulatory period 6 years (2020 – 2025) 8 years (2016 – 2023) 4 years (2020 – 2023) 4 years (2018-2021) WACC methodology 6 years (2016 – 2021) 6 years (2016 – 2021) 4 years (2020
Slide 17: Networks concessions
BP@2025 Networks concessions GAS CONCESSIONS WATER CONCESSIONS ELECTRICITY CONCESSIONS ATEM Expiry AREA Expiry AREA Expiry Genova 1 Expired Piacenza* Expired Torino 2030 Parma Expired Reggio Emilia* Expired Parma 2030 Reggio Emilia Expired Genova 2032 Vercelli 1 2030 Vercelli Expired Parma 2025 Piac
Slide 18: Hydroelectric and waste concessions
BP@2025 Hydroelectric and waste concessions HYDROELECTRIC CONCESSIONS MAIN WASTE CONCESSIONS Electric Power AREA Expiry AREA Hydroelectric plant Expiry (MW) Parma** 1st in ranking Piemonte 1 Pont Ventoux-Susa 157 2034 Piacenza** 1st in ranking Expired Reggio Emilia Expired Piemonte 2 Valle Orco e S.
Slide 19: Ebitda breakdown by activity
FY 2020 Ebitda breakdown by activity 2019 2020 27% 29% 49% 49% 24% 22% Regulated Quasi regulated Merchant Regulated Quasi regulated Merchant Networks 100% Networks 100% Waste 89% Waste 80% Energy 47% Energy 64% Market 100% Market 100% Regulated and quasi regulated Merchant Regulated and quasi regula
Slide 20: Sustainability Ratings
FY 2020 Sustainability Ratings SCORE A/AAA 29,7 A/A Advanced 72,63 E+ 16
Slide 21: Disclaimer
FY 2020 Disclaimer The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of IREN S.p.A., Mr. Massimo Levrino, hereby declares, pursuant to paragraph 2 of article 154 bis of the Consolidated Finance Act (Legislative Decree No 58/1998), that the account