Iren S.p.a. · MIL:IRE
Iren — Q1 2024 Earnings Presentation
17 slides from Iren's earnings presentation, May 15, 2024
Slide 1: Q1 2024 Results
Q1 2024 RESULTS May 15th, 2024
Slide 2: Key Highlights
2 KEY HIGHLIGHTS 2 Q1 2024 RESULTS HIGHLIGHTS ESG KEY FINANCIALS NETWORKS WASTE EBITDA growth (+4% YoY), NFP reduction (-1%) Guidance improved ENERGY driven mainly by regulatory compared to FY2023 supported by higher hydro MARKET framework update and Market generation EBITDA - BU’s profitability inc
Slide 3: Sustainable growth continued throughout the quarter
3 SUSTAINABLE GROWTH CONTINUED THROUGHOUT THE QUARTER 3 Q1 2024 RESULTS Green transition Local presence Service quality HIGHLIGHTS Sorted waste collection ESG Municipalities served in waste collection Green energy sale Ahead Ahead On track KEY FINANCIALS 489 474 # GWh 417 422 70% 72% NETWORKS Q1 ‘23
Slide 4: Q1 Results at a Glance
4 Q1 RESULTS AT A GLANCE Q1 2024 EBITDA EVOLUTION RESULTS €M +4% HIGHLIGHTS Q1 '23 Q1 ' 24 Δ Δ% ESG Revenues 2.020 1. 568 -452 -22% (€M) 28 0 30 383 EBITDA 368 383 15 4% 368 KEY FINANCIALS EBIT 210 213 3 1% -43 NETWORKS Group net profit 135 122 -13 -10% WASTE Capex 197 184 -13 -7% ENERGY Net Financi
Slide 5: Networks: Organic growth and new regulatory parameters drove a +30% EBITDA
NETWORKS NETWORKS NETWORKS Organic growth and new regulatory parameters drove a +30% EBITDA 5 Q1 2024 RESULTS EBITDA EVOLUTION GROSS CAPEX €M +30% HIGHLIGHTS 83 -3% 81 10 9 ESG -10% 19 19 3 124 - KEY FINANCIALS 22 3 96 NETWORKS 54 -2% 53 (€M) WASTE Q1 '23 Q1 '24 ENERGY Water Electricity Gas Q1 ’23 W
Slide 6: Waste: Positive collection and consolidation offset by plants unavailability
WASTE NETWORKS Positive collection and consolidation offset by plants unavailability 6 Q1 2024 RESULTS EBITDA EVOLUTION CAPEX €M HIGHLIGHTS 47 -34% ESG - 10 31 68 68 28 KEY FINANCIALS -10 -36% 18 NETWORKS 19 -32% 13 (€M) WASTE Q1 '23 Q1 '24 Collection Treatment & Disposal ENERGY Q1 ’23 Collection Tr
Slide 7: Energy: Energy prices downtrend
ENERGY NETWORKS Energy prices downtrend 7 Q1 2024 RESULTS HEAT DISTRIBUTED EBITDA EVOLUTION €M HIGHLIGHTS -33% 1,278 1,301 +9% +2% ESG 1 KEY FINANCIALS 134 -5 90 NETWORKS -29 -11 (GWht) WASTE Q1 '23 Q1 '24 ENERGY Q1 2023 RES Heat CCGT & thermo Energy efficiency Q1 2024 MARKET ELECTRICITY PRODUCED 2,
Slide 8: Market: Continuous growth in electricity sector
MARKET NETWORKS 8 Continuous growth in electricity sector Q1 2024 RESULTS ELECTRICITY SOLD EBITDA EVOLUTION €M HIGHLIGHTS +43% 2,040 +22% +9% 1,677 ESG +97% 690 350 29 2 100 KEY FINANCIALS 367 +7% 393 -1 70 NETWORKS 960 - 957 (GWh) WASTE Q1 '23 Q1 '24 Retail & SMEs Business Wholesale ENERGY Q1 ’23 E
Slide 9: EBITDA to Group Net Profit Reconciliation
9 EBITDA TO GROUP NET PROFIT RECONCILIATION Q1 2024 RESULTS €M HIGHLIGHTS Q1 '23 Q1 '24 Δ Δ% ESG EBITDA 368 383 15 4.0% ▪ Depreciation increase linked to investments D&A -140 -155 KEY FINANCIALS made and new companies’ integrations Provisions to bad debt -16 -16 NETWORKS Other provisions and write-d
Slide 10: Net Financial Position Evolution (Q1 2024 vs FY2023)
10 NET FINANCIAL POSITION EVOLUTION (Q1 2024 VS FY2023) Q1 2024 RESULTS €M 3.932 -20€M (-1%) 19 HIGHLIGHTS 165 3.912 -11 ESG 179 KEY FINANCIALS 83 NETWORKS -383 -72 WASTE Operating cash flow levered -193 ENERGY MARKET FY ’23 Ebitda Other Superbonus Changes in WC Net Tech. M&A MtM Derivatives Q1 ’24
Slide 11: Closing Remarks
11 CLOSING REMARKS Q1 2024 RESULTS HIGHLIGHTS ESG KEY FINANCIALS ▪ Increased EBITDA 1,230/1,240M€ (+10M€ vs previous guidance, +4% vs. FY2023) NETWORKS GUIDANCE 2024 ▪ Net profit 260/270M€ (+4% vs. FY2023) WASTE CONFIRMED ENERGY ▪ Gross Investments (excluding incentives): ~1B€ MARKET ▪ NFP/EBITDA: ~
Slide 12: Annexes
ANNEXES
Slide 13: Q1 2024 Business Units' Results
Q1 2024 BUSINESS UNITS’ RESULTS 13 Q1 2024 NETWORKS WASTE RESULTS €M Q1 '23 Q1 '24 Δ Δ% HIGHLIGHTS €M Q1 '23 Q1 '24 Δ Δ% Revenues 294 313 19 6% Revenues 302 304 2 1% ESG Ebitda 96 124 28 30% Ebitda 68 68 0 0% Electricity 19 22 3 16% KEY FINANCIALS Collection 19 29 10 53% Gas 21 24 3 14% Water 56 78
Slide 14: A Sound and Sustainable Debt Structure
14 A SOUND AND SUSTAINABLE DEBT STRUCTURE Q1 2024 RESULTS INTEREST RATE DEBT STRUCTURE HIGHLIGHTS ESG 12% 1% 20% KEY FINANCIALS 19% NETWORKS 50% WASTE 69% 29% ENERGY MARKET Fixed Fixed-rate swap Variable Green Bond EIB-CEB ESG Loans Bonds Loans EBITDA - NET PROFIT NFP CLOSING REMARKS 88% 4.8 years 2
Slide 15: Industrial KPIs
INDUSTRIAL KPIS 15 Q1 2024 RESULTS HIGHLIGHTS Q1 ’23 Q1 ‘24 Δ% ESG Electricity distributed (GWh) 900 884 -2% KEY FINANCIALS Gas distributed (mcm) 442 447 +1% NETWORKS Water distributed (mcm) 43 42 -1% WASTE Waste collected (Kton) 480 531 +11% ENERGY Waste treated (Kton) 673 707 +5% MARKET WTE’s elec
Slide 16: Scenario
SCENARIO 16 Q1 2024 RESULTS HIGHLIGHTS ESG Q1 ’23 Q1 ‘24 Δ% KEY FINANCIALS NETWORKS PSV €/000 scm 61 31 -49% WASTE PUN (€/MWh) 157 92 -41% ENERGY CO2 €/Ton 87 59 -32% MARKET Green Cert. Hydro (€/MWh) 42,9 0 n.s. EBITDA - NET PROFIT Clean spark spread (€/MWh) -3.6 -5.7 -58% NFP CLOSING REMARKS ANNEXE
Slide 17: Disclaimer
17 DISCLAIMER Q1 2024 The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of RESULTS IREN S.p.A., Mr. Giovanni Gazza, hereby declares, pursuant to paragraph 2 of article 154 bis of the Consolidated Finance HIGHLIGHTS Act (Legislative Decree No 58/19