Iren S.p.a. · MIL:IRE
Iren — 9M 2022 Earnings Presentation
19 slides from Iren's earnings presentation, Nov 3, 2022
Slide 1: 9M 2022 Results
9M 2022 RESULTS November 3rd, 2022
Slide 2: Key Highlights
Key Highlights Effectiveness in Gross offsetting the several FY 2022 Guidance Investments 1.8x headwinds and the confirmed with EBITDA +4% yoy, yoy, in line with severe scenario particular Trade NWC driven by renewables 10-year Business volatility commitment on optimized and and waste treatment Plan
Slide 3: Growth in a sustainable direction
Growth in a sustainable direction Green transition Local presence Service quality Carbon On track Sorted waste Physical Ahead 338* On track Intensity gCO2/kWh collection Stores’ # 9.7 328 Customer 9.0 69% 69%* Satisfaction Index 9M '21 9M '22 9M ‘22 9M '21 9M '22 9M ‘21 Material On track Waste Clien
Slide 4: Strong investments supporting EBITDA resilience
Strong investments supporting EBITDA resilience (€M) 9M '21 9M ' 22 Δ Δ% EBITDA EVOLUTION +4% Revenues 3.102 5. 644 2.542 81,9% +4% EBITDA 731 759 28 3,9% 86 EBIT 335 324 -10 -3,1% 731 713 33 744 15 759 (€M) -18 -1 -87 Group net profit 241 138 -103 -42,7% Group net profit adj.* 200 168 -32 -15,8% Gr
Slide 5: RAB expansion offset by WACC reduction and operational costs
NETWORKS NETWORKS RAB expansion offset by WACC reduction and operational costs +1% GROSS CAPEX (€M) 0% +20% 222 290 284 5 0 283 9 292 185 32 -6 -6 30 +6% 42 39 +8% +26% 148 117 (€M) 9M '21 9M '22 Water Electricity Gas 9M ’21 One-offs ’21 Water Electricity Gas One-offs ’22 9M ’22 RAB +7% 7% RAB exp
Slide 6: Waste treatment facilities continue to drive the BU's growth
WASTE NETWORKS Waste treatment facilities continue to drive the BU’s growth +20% 36 WASTE MANAGED 197 +1% 164 -3 (€M) 2,612 2,628 630 588 -7% 1,982 2,040 +3% (kTon) 9M ’21 Treatment & Disposal Collection 9M ’22 9M '21 9M '22 Urban waste Other waste Positive energy scenario impact on WTEs’ energy s
Slide 7: RES and Cogeneration assets offsetting drought impact
ENERGY NETWORKS RES and Cogeneration assets offsetting drought impact +53% 16 HEAT DISTRIBUTED 22 254 6 260 31 -4% (€M) 41 -24 2,043 1,970 170 168 -2 (GWht) 9M ’21 One- RES CCGT & Heat Energy Hydro One- 9M ’22 9M '21 9M '22 offs ’21 Thermo efficiency offs ’22 ELECTRICITY PRODUCED Photovoltaic asse
Slide 8: Severe scenario volatility combined with lower naturally hedged volumes
MARKET NETWORKS Severe scenario volatility combined with lower naturally hedged volumes ELECTRICITY SOLD (€M) 104 -93% +24% 94 6,542 -10 5,297 2,301 1,169 n.s. 2,116 1,677 -21% 9 7 2,012 +27% 2,564 (GWh) -85 -11 9M '21 9M '22 Retail & SME Business Wholesale 9M ’21 One-offs ’21 Electricity Gas IrenPl
Slide 9: EBITDA to Group Net Profit reconciliation
EBITDA to Group Net Profit reconciliation (€M) 9M '21 9M '22 Δ Δ% Higher depreciation as a result of acquisitions and new EBITDA 730,8 759,3 28,5 3,9% industrial investments carried-out during the period D&A -345,2 -390,2 Increase of provisions for bad debt linked to doubling of revenues; so far
Slide 10: Net Financial Position Evolution (9M 2022 vs FY2021)
Net Financial Position Evolution (9M 2022 vs FY2021) +951€M (+33%) (€M) 165 46 3.857 320 557 2.906 144 290 188 -759 Operating cash flow levered -137€M FY’ 21 Ebitda Taxes, financial Gas storage Other Net Capex M&A Dividends MtM 9M ’22 charges & variations Derivatives others in WC Net capex increas
Slide 11: Further actions to counterbalance headwinds and strengthen capital structure
Further actions put in place to counterbalance headwinds and to strengthen the capital structure Active energy management No exposure to margin calls on energy derivatives Gas procurement at 80% of Iren annual needs No significant exposure to margin calls (~2.4Bcm) already secured, of which 100%
Slide 12: Closing Remarks
Closing Remarks Reinforced commitment Business plan targets achieved ahead Continuous sound financial towards investments of time on green transition (renewables) discipline and efficient working supporting the energy transition and local presence (inhabitants served capital management in waste coll
Slide 13: Annexes
ANNEXES
Slide 14: Iren at a glance
Iren at a glance Energy Infrastructure Water Service Urban Waste Collection REGULATED ACTIVITIES (46% of Ebitda) Hydroelectric Green Certificates District Heating Urban Waste Disposal QUASI >7million REGULATED ACTIVITIES INHABITANTS IN IREN’S 3 (24% of Ebitda) LEGACY REGIONS Generation Energy Market
Slide 15: 9M 2022 Business units' results
9M 2022 Business units’ results NETWORKS WASTE €M 9M '21 9M '22 Δ Δ% €M 9M '21 9M ' 22 Δ Δ% Revenues 690 832 142 20% Revenues 667 784 117 18% Ebitda 290 292 2 1% Ebitda 164 197 33 20% Electricity 63 57 -6 -10% Collection 48 42 -6 -13% Gas 69 60 -9 -13% Treatment & disposal 116 155 39 34% Water 158 1
Slide 16: Financials
Financials INTEREST RATE DEBT STRUCTURE MATURITIES 620 12% 2% 565 565 (€M) 12% 30% 384 46% 76% 53 65 22% Fixed Swap Variable Green Bonds EIB-CEB Bonds Loans 2022 2023 2024 2025 2026 2027 88% of gross debt at fixed interest rate Average long-term debt duration of about 5.0 years vs 5.7 years in 9
Slide 17: Industrial KPIs
Industrial KPIs 9M ’21 9M ‘22 Δ% Electricity distributed (GWh) 2,733 2,787 +2% Gas distributed (mcm) 895 785 -12% Water distributed (mcm) 130 126 -3% Waste collected (Kton) 1,242 1,341 +8% Waste treated (Kton) 2,119 2,094 -1% Renewable production (GWh) 1,020 785 -23% Hydro production (GWh) 1,003 608
Slide 18: Scenario
Scenario 9M ’21 9M ‘22 Δ% Gas Demand (bcm) 47.7 49.0 2.7% PSV €/000 scm 30.1 130.7 (*) Energy Demand (Twh) 239.0 240.9 0.8% PUN (€/Mwh) 86.1 322.9 (*) CO2 €/Ton 48.2 82.1 70.3% Green Cert. Hydro (€/Mwh) 109.4 42.9 -60.8% TEE (€/TEE) 260 257 -1.2% (*) Variation greater than 100% 18 KEY EBITDA - CLOSI
Slide 19: Disclaimer
Disclaimer The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of IREN S.p.A., Ms. Anna Tanganelli, hereby declares, pursuant to paragraph 2 of article 154 bis of the Consolidated Finance Act (Legislative Decree No 58/1998), that the accounting info