Iren S.p.a. · MIL:IRE

Iren — Q1 2020 Earnings Presentation

15 slides from Iren's earnings presentation, May 12, 2020

  1. Slide 1: 1Q 2020 Results

    1Q 2020 RESULTS 12th May 2020

  2. Slide 2: 1Q 2020 Results in line with previous year despite a difficult scenario

    1Q 2020 Results in line with previous year despite a difficult scenario 1Q 2020 RESULTS KPIs EBITDA BRIDGE (m€) m€ 1Q '19 1Q '20 Δ Δ% Revenues 1.278 1.077 -201 -15,7% 274 4 2 22 1 274 Ebitda 274 274 0 0,1% Ebit 172 146 -26 -15,3% (29) Group net profit 100 84 -16 -16,2% Tech. Capex 85 130 45 52,0% Eb

  3. Slide 3: Networks: Growth driven by investments

    NETWORKS Growth driven by investments 1Q 2020 RESULTS + RAB growth combined with +5.5% synergies led the 5% Ebitda 0 increase. 89 EBITDA BRIDGE 1 3 85 + The positive investments trend in water and electricity distribution continues, in line with the business plan assumptions Ebitda 1Q '19 Water Elec

  4. Slide 4: Waste: Collection activities supported the growth

    WASTE Collection activities supported the growth 1Q 2020 RESULTS + Higher efficiency of collection +4.7% activities. 43 EBITDA BRIDGE 2 0 + Saturation of WTE plants, 41 through the reorganization of flows. + Increase in waste management Ebitda 1Q '19 Collection Treatment & disposal Ebitda 1Q '20 (3%

  5. Slide 5: Energy: Business unit impacted by a negative energy scenario

    ENERGY Business unit impacted by a negative energy scenario 1Q 2020 RESULTS + Higher hydro volumes -24.9% + Positive results in the ancillary 116 -13.8% EBITDA BRIDGE services market (18m€, +100% vs 101 0 87 last year) Ebitda 1Q '19 Hydro Coge Coge Electricity Thermo heat 130 130 135 140 145 5 5 5 5

  6. Slide 6: Market: Margins normalization thanks to commercial policy and hedging activities

    MARKET Margins normalization thanks to commercial policy and hedging activities 1Q 2020 RESULTS + Higher electricity retail volumes +67.3% + Positive repricing commercial 11 55 11 EBITDA BRIDGE policy and hedging activities in 33 Ebitda 1Q '19 130 Hydro 130 5 Coge Electricity 135 5 Thermo 140 5 Coge

  7. Slide 7: Profit and loss

    1Q 2020 Profit and loss 1Q 2020 RESULTS FROM EBITDA TO GROUP NET PROFIT (m €) 1Q '19 1Q '20 Δ Δ%  Increase in depreciations related to capital EBITDA 274.2 274.4 0.2 0.1% intensive investments D&A and others -97.8 -106.9  Higher provisions to bad debt mainly related Provisions to bad debt -4.7 -22

  8. Slide 8: Cash-flow and NFP

    1Q 2020 Cash-flow and NFP 1Q 2020 RESULTS NET FINANCIAL POSITION BRIDGE (m €) +102 m€ 130 16 2,807 2,706 160 (90) (115) NFP 31.12.19 Net Profit D&A, provisions NWC Variation Capex Derivatives and NFP 31.3.20 and other others  Slight increase in net financial position equal to 3.8% led by the worsen

  9. Slide 9: Financials

    1Q 2020 Financials 1Q 2020 RESULTS INTEREST RATE DEBT STRUCTURE MATURITIES 4% 561 20% 16% 420 211 229 80% 58 80% Fixed Swap Variable Bonds Loans 2020 2021 2022 2023 2024  96% of gross debt at fixed interest rate and 4% of gross debt at  200m€ of undrawn committed long term credit lines (120m€ BEI

  10. Slide 10: Closing remarks

    1Q 2020 Closing remarks 1Q 2020 RESULTS  In light of the 1Q results, we confirm the effectiveness of our growth path, organic and external in our reference areas, in an energy scenario downturn also impacted by heat volumes reduction.  Further scenario weakness led by the COVID emergency, is expec

  11. Slide 11: Annexes

    Annexes

  12. Slide 12: Business units' results

    1Q 2020 Business units’ results 1Q 2020 RESULTS NETWORKS WASTE m€ 1Q '19 1Q '20 Δ Δ% m€ 1Q '19 1Q '20 Δ Δ% Revenues 233 244 11 5% Revenues 175 179 4 2% Ebitda 85 89 4 5% Ebitda 41 43 2 5% Electricity 18 19 1 6% Collection 13 15 2 15% Gas 20 20 0 0% Water 47 3 Treatment & disposal 28 28 0 0% 50 7% Eb

  13. Slide 13: Scenario

    1Q 2020 Scenario 1Q 2020 RESULTS 1Q '19 1Q ’20 Δ% Gas Demand (bcm) 25.5 23.9 -6.5% TTF €/000 scm 195 103 -47.1% PSV €/000 scm 220 120 -45.5% Energy Demand (Twh) 80.3 77.0 -4.2% PUN (€/Mwh) 59.4 39.6 -33.4% CO2 €/Ton 22.2 22.8 2.6% Green Cert. Hydro (€/Mwh) 92.1 99.1 7.5% TEE (€/TEE) 259.9 265.0 2.0%

  14. Slide 14: Balance sheet

    1Q 2020 Balance sheet 1Q 2020 RESULTS FY ’19 1Q ’20 Net fixed assets 6,096 6,142 Net Working Capital 166 326 Funds -625 -649 Other assets and liabilities -280 -279 Net invested capital 5,357 5,540 Group Shareholders' equity 2,651 2,733 Net Financial Position 2,706 2,807 Total Funds 5,357 5,540 E B I

  15. Slide 15: Disclaimer

    1Q 2020 Disclaimer 1Q 2020 RESULTS 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),

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