Iren S.p.a. · MIL:IRE

Iren — Q1 2021 Earnings Presentation

17 slides from Iren's earnings presentation, May 13, 2021

  1. Slide 1: Iren Results 1Q 2021

    IREN RESULTS 1Q 2021 13th May 2021

  2. Slide 2: 1Q 2021 Positive results in a recovery scenario

    1Q 2021 Positive results in a recovery scenario KPIs EBITDA BRIDGE (m€) m€ 1Q '20 1Q '21 Δ Δ% +14.0% Revenues 1,077 1,140 63 5.8% +13.2% 19 308 5 313 Ebitda 274 313 39 14.0% 9 6 274 272 2 Ebit 145 184 39 26.7% (2) Group net profit 84 121 37 44.2% Tech. Capex 130 122 -8 -6.2% NFP 2,948* 2,915 -33 -1.

  3. Slide 3: Networks: Ebitda rise through organic growth and synergies

    NETWORKS Ebitda rise through organic growth and synergies + Increase led by higher allowed +5.7% EBITDA BRIDGE (m€) revenues (thanks to RAB growth) +2.2% and synergies + Investments are in line with last 89 1 0 1 91 3 94 year + Districtization activities continue by adding 28 more districts 1Q '20 W

  4. Slide 4: Waste: I.Blu and Unieco consolidation positive impact

    WASTE I.Blu and Unieco consolidation positive impact + Higher margins on collection +20.5% EBITDA BRIDGE (m€) activities + I.Blu and Unieco positive 8 52 43 1 contribution for 8m€ + Higher PUN price supported the electricity sold for 3m€ + Increase in waste managed 1Q '20 Collection Treatment 1Q '21

  5. Slide 5: Energy: Increase driven by the hydro sector

    ENERGY Increase driven by the hydro sector + Higher hydro volumes and prices EBITDA BRIDGE (m€) +6.5% benefitting also of higher GCs + Increase in heat volumes distributed due to cold 7 2 93 87 temperatures and networks (1) (2) expansion + Higher rebuilding activities 1Q '20 Hydro & Ren Coge EE & Th

  6. Slide 6: Market: Growth led by higher margins in the gas sector

    MARKET Growth led by higher margins in the gas sector + Lower costs of procurement and +34.1% use of gas stored in 2020, led to EBITDA BRIDGE (m€) margin growth (13m€) +35.8% + Margins’ enhancement thanks to 1 72 2 74 17 commercial policy 55 53 1 + Higher gas volumes thanks to (2) favourable climati

  7. Slide 7: Profit and loss

    1Q 2021 Profit and loss FROM EBITDA TO GROUP NET PROFIT (m€) 1Q '20 1Q '21 Δ Δ%  Higher depreciations due to capital intensive EBITDA 274.4 312.9 38.5 14.0% capex and the I.Blu and Unieco Depreciations -102.5 -112.1 consolidations Provisions to bad debt -22.0 -14.6  Lower provisions to bad debt re

  8. Slide 8: Cash-flow and NFP

    1Q 2021 Cash-flow and NFP NET FINANCIAL POSITION BRIDGE (m€) -33m€ 2.948 122 25 4 2.915 70 (9) (128) (117) FY '20 Net Profit D&A, NWC Capex Consolidation SBB Derivatives 1Q '21 provisions Variation and other  The cash flow generation offset the NWC increase, the high level of capex and the cash out

  9. Slide 9: Financials

    1Q 2021 Financials INTEREST RATE DEBT STRUCTURE MATURITIES 4% 2% 12% 563 563 422 39% 45% 230 84% 60 62 14% Fixed Swap Variable Green Bonds EIB 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% EIB gross debt at

  10. Slide 10: Closing remarks

    1Q 2021 Closing remarks MAIN 1Q 2021 TAKEAWAYS 2021 NEXT MONTHS EXPECTATIONS  Stronger contribution of the whole energy value chain supported by a  FY 2021 growth mainly driven by Energy activities at larger extent and by recovery in energy scenario exploited by an effective attitude in Waste acti

  11. Slide 11: Italian PNRR – EU Recovery fund

    1Q 2021 Italian PNRR – EU Recovery fund GENERAL AND SECTOR REFORMS IREN will benefit from the general reforms, but above all, from the sector reforms through the short implementation timeframe and clear guidelines in terms of: Reforms represent a very important  simplification of plant and infrastr

  12. Slide 12: Italian PNRR – EU Recovery fund

    1Q 2021 Italian PNRR – EU Recovery fund Approximately 70b€ are allocated to the Green Revolution and Economic Transition mission, which is perfectly in line with Iren's strategy. PNRR GUIDELINES REFORMS OPPORTUNITIES Current Iren presence Relevant Good Sufficient  Plant development acceleration  C

  13. Slide 13: Annexes

    ANNEXES

  14. Slide 14: Business units' results

    1Q 2021 Business units’ results NETWORKS WASTE m€ 1Q '20 1Q '21 Δ Δ% m€ 1Q '20 1Q ' 21 Δ Δ% Revenues 244 252 8 3% Revenues 179 217 38 21% Ebitda 89 94 5 6% Ebitda 43 52 9 21% Electricity 19 19 0 2% Collection 15 16 1 7% Gas 20 22 2 7% Water 50 53 3 7% Treatment & disposal 28 36 8 29% Ebit 40 48 8 18

  15. Slide 15: Scenario

    1Q 2021 Scenario 1Q ’20 1Q ’21 Δ% Gas Demand (bcm) 23.9 25.2 5.8% TTF €/000 scm 103 195 89.6% PSV €/000 scm 120 198 65.3% Energy Demand (Twh) 77.0 78.6 2.2% PUN (€/Mwh) 39.6 59.2 49.6% CO2 €/Ton 22.8 37.4 64.0% Green Cert. Hydro (€/Mwh) 99.1 109.4 10.4% TEE (€/TEE) 265 260 -1.9% 15 CASHFLOW & CLOSIN

  16. Slide 16: Balance sheet

    1Q 2021 Balance sheet FY ’20 1Q ’21 Net fixed assets 6,581 6,644 Net Working Capital 42 112 Funds -657 -691 Other assets and liabilities -254 -255 Net invested capital 5,712 5,810 Group Shareholders' equity 2,764 2,895 Net Financial Position 2,948 2,915 Total Funds 5,712 5,810 16 CASHFLOW & CLOSING

  17. Slide 17: Disclaimer

    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 accounting info

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