Iren S.p.a. · MIL:IRE
Iren — Debt Investor Presentation (January 2025)
19 slides from Iren's debt investor presentation, January 2025
Slide 1: Inaugural Hybrid Offering Investor Presentation
INAUGURAL HYBRID OFFERING INVESTOR PRESENTATION January 2025
Slide 2: Iren at a Glance
Iren at a Glance National player in District 1° Heating volumes with 101 Mcm 17% EBITDA made by: National player with 4 M 2° inhabitants served in the 31% ~65% regulated and waste collection semi-regulated EBITDA FY 2023 activities 3° National player in waste 1.2 B€ with 3.8 Mton managed ~35% unregu
Slide 3: Focus on Iren's Activities
Focus on Iren’s Activities Networks Waste Energy1 Market Power distribution Collection District Heating Gas & Power supply Gas distribution Treatment and material recovery RES, Hydro & storage Commercial services Integrated water cycle Thermoelectric Energy Efficiencies EBITDA 2023 EBITDA 2023 EBITD
Slide 4: Inorganic Growth: Latest Acquisitions
Inorganic Growth: Latest Acquisitions >100M€ ~300k ~10 Mcm District heating <200 k water + gas RAB Inhabitants served gas + power clients by waste collection volumes +20 €M ~55% Company control Egea capital increase to Egea’s shares and consolidation support district heating held by Iren from Januar
Slide 5: Agenda
⦿ COMPANY STRATEGY ⦿ FINANCIAL HIGHLIGHTS HYBRID OFFERING JANUARY 2025 ⦿ HYBRID OFFERING OVERVIEW ⦿ ANNEXES
Slide 6: 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 7: We Reallocate Investments for a Sound and Visible Plan 2024-30
We Reallocate Investments for a Sound and Visible Plan 2024-30 6% 20% 40% Inorganic Unregulated Maintenance Cumulated capex Cumulated capex Cumulated capex 8.2 B€ 8.2 B€ 8.2 B€ 94% 80% 60% Organic Regulated* Development 20% ⦿ LOW EXECUTION RISK ⦿ HIGH PREDICTABILITY OF RESULTS ⦿ HIGH FLEXIBILITY *In
Slide 8: Sustainability Drives Future Investments in Each Business
Sustainability Drives Future Investments in Each Business 7% 9% Networks • Investments refocusing 34% Cumulated capex Waste • Increased investment in organic growth of regulated businesses 2024-2030 Energy • Investments in renewables supported by incentives 30% 8.2 B€ Market Corporate • Rescheduling
Slide 9: Sound and Sustainable Growth in Iren's 2024-2030 Plan
Sound and Sustainable Growth in Iren’s 2024-2030 Plan 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 NET FINANCIAL DEBT / EBITDA 3.5x ~1,800 >400 Financial 3.3x flexibility 255 1,197 2.7x 2023 2027 2030 2023 2027 20
Slide 10: Agenda
⦿ COMPANY STRATEGY ⦿ FINANCIAL HIGHLIGHTS HYBRID OFFERING JANUARY 2025 ⦿ HYBRID OFFERING OVERVIEW ⦿ ANNEXES
Slide 11: Iren Historical Financial Performance
Iren Historical Financial Performance €M +8% +9% 1,197 303 1,016 1,055 924 Market 255 857 226 Waste 177 193 Energy Networks FY 2021 FY 2022 FY 2023 9M '23 9M '24 FY 2021 FY 2022 FY 2023 9M '23 9M '24 3.5x Financial +2% Market 898 867 flexibility 758 Waste 3.3x 3.2x Energy 2.9x 548 560 Networks FY 20
Slide 12: Balanced Debt Maturity Profile
Balanced Debt Maturity Profile 1% 18% €M 843 Bond Maturities Other 55% 26% 343 594 551 543 552 549 549 545 94 68 49 49 75 45 Green Bonds ESG Loans Bonds Loans 503 476 500 500 484 500 500 500 80 80 40 11% 2025 2026 2027 2028 2029 2030 2031 2032 2033 Re-financing of 2025 maturities already addressed i
Slide 13: Net Financial Position Evolution (9M 2024 vs FY2023)
Net Financial Position Evolution (9M 2024 vs FY2023) €M +173 €M (+4%) 179 36 4.107 3.934 111 560 374 89 -252 -924 Operating cash flow levered -713€M FY ’23 Ebitda Other Superbonus Changes Capex M&A Dividends MtM 9M ’24 operational 110% & tax in WC Derivatives changes credits ▪ Operating cash flow co
Slide 14: Agenda
⦿ COMPANY STRATEGY ⦿ FINANCIAL HIGHLIGHTS HYBRID OFFERING JANUARY 2025 ⦿ HYBRID OFFERING OVERVIEW ⦿ ANNEXES
Slide 15: Strategic Transaction Rationale
Strategic Transaction Rationale Support our financial flexibility through the life of the ➢ Integration of EGEA Strategic Plan, enabling the anticipated integration of EGEA Preserve Financial Flexibility along with new potential inorganic growth opportunities ➢ New inorganic growth opportunities ➢ C
Slide 16: Indicative Offering Term Sheet
Indicative Offering Term Sheet Issuer Iren S.p.A. (the “Issuer”) LEI 8156001EBD33FD474E60 Anticipated Equity Credit S&P: Intermediate Equity Content (50%) (until First Reset Date) Fitch: 50% Equity Credit [(until 15 years after the First Reset Date)] Ranking Deeply Subordinated, senior to ordinary s
Slide 17: Annexes
⦿ COMPANY STRATEGY ⦿ FINANCIAL HIGHLIGHTS HYBRID OFFERING JANUARY 2025 ⦿ HYBRID OFFERING OVERVIEW ⦿ ANNEXES
Slide 18: 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 19: Disclaimer
Disclaimer This document was prepared by IREN for use during meetings with investors and financial analysts. References below to “this document” include any oral statements or question- and-answer sessions and any written or oral material discussed or distributed in connection with such meetings or