Iren S.p.a. · MIL:IRE
Iren — Euronext Sustainability Week 2025
46 slides from Iren's conference presentation, Sep 11, 2025
Slide 1: Investors' Presentation
⦿ COMPANY STRATEGY ⦿ H1 2025 RESULTS ⦿ DEBT PROFILE INVESTORS’ PRESENTATION ⦿ ANNEXES EURONEXT SUSTAINABILITY WEEK 4-11 September 2025
Slide 2: Macrotrend and main development drivers
Macrotrend and main development drivers BUSINESS UNITS MACRO TREND IREN’S ACTIONS • Water resource scarcity • Sustainable water management NETWORKS • Electrification of consumption • Power grid upgrading • Quality of service • Performance improvement • Circular economy • Material and energy recovery
Slide 3: 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 4: Investments reallocation for a sound and visible plan
Investments reallocation for a sound and visible plan B€ 4.9 Regulated* Development 80% 3.3 60% Cumulated capex Corporate 8.2 B€ Market Waste Energy Networks 2024-2027 2028-2030 40% Maintenance 20% Unregulated ⦿ LOW EXECUTION ⦿ HIGH PREDICTABILITY ⦿ HIGH RISK OF RESULTS FLEXIBILITY *Including incent
Slide 5: Sustainability drives future investments
Sustainability drives future investments 24% Water resources 35% ⦿ 5 SUSTAINABILITY FOCUS AREAS DECLINE OUR INDUSTRIAL STRATEGY, Circular economy Decarbonization ~70% IN LINE WITH THE CSRD Resilient cities Sustainable Capex* People * Eligible for EU Taxonomy 30% Water leaks Material recovery Carbon
Slide 6: 2023-2027 EBITDA bridge
2023-2027 EBITDA bridge Cagr +7% €M 37 1,549 100 0 215 1,197 FY ’23 Networks Waste Energy Market 2027 Exp • organic growth • organic growth • 2023 energy • higher customer scenario base and EE • regulatory update • M&A (Sienambiente, normalisation clients’ margins collection, EGEA) • synergies • org
Slide 7: Sound and sustainable growth
Sound and sustainable growth 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 FINANCIAL LEVERAGE 3.5x ~1,800 >400 Financial ~1,550 360 3.3x flexibility 255 3.1x 1,197 2.7x 2023 2027 2030 2023 2027 2030 2023 2027 2030
Slide 8: H1 2025 Results
⦿ COMPANY STRATEGY ⦿ H1 2025 RESULTS INVESTORS’ PRESENTATION ⦿ DEBT PROFILE ⦿ ANNEXES
Slide 9: Key Highlights
Key Highlights Guidance confirmed Double digit growth, with Net debt at 4.2€B after 34€M coming from H1 EBITDA up by 90 €M investments and (+14% ) EGEA integration dividend payment INVESTORS’ PRESENTATION STRATEGY H1 2025 RESULTS DEBT PROFILE ANNEXES 9
Slide 10: H1 '25 results at a glance
H1 ‘25 results at a glance €M +14% H1 '24 H 1 ' 25 Δ Δ% Revenues 2,698 3,486 788 29% (€M) EBITDA 636 726 90 14% 40 10 726 33 7 636 EBIT 279 326 47 17% Group net profit 148 184 36 24% Technical capex 345 393 48 14% Net Financial Position 4,083* 4,228 145 4% H1 ’24 Networks Waste Energy Market H1 ’25
Slide 11: Net financial position evolution (H1 2025 vs FY2024)
Net financial position evolution (H1 2025 vs FY2024) €M +145 €M (+4%) 522 177 4.228 4.083 393 -18 -494 214 39 38 -726 Operating cash flow levered -435€M FY ’24 Ebitda Other Superbonus Changes Capex M&A Hybrid Bond Dividends MtM H1 ’25 operational 110% & tax in WC Derivatives changes credits Operat
Slide 12: Closing remarks
Closing remarks Networks: growth confirmed net of non-recurrent elements EBITDA: 1,340 - 1,360€M Waste: growth trend confirmed thanks also to treatment plants Net profit: 300 - 310€M recovery Gross technical capex: ~0.9€B Energy: H2 ‘25 weak vs H2 ‘24 due to lower hydro volumes M&A out
Slide 13: Debt Profile
⦿ COMPANY STRATEGY ⦿ H1 2025 RESULTS INVESTORS’ PRESENTATION ⦿ DEBT PROFILE ⦿ ANNEXES
Slide 14: A sound and sustainable debt structure
A sound and sustainable debt structure 1% 10% Green Bonds Traditional Bonds Loans 593 599 25% 546 558 555 555 550 514 93 99 74 55 55 50 Cash 64% 38 23% 506 Undrawn committed 476 500 500 484 500 500 500 55% credit lines Green Bonds ESG Loans Bonds Loans 80 22% Undrawn 80 40 uncommitted credit H2 2026
Slide 15: Strong commitment to maintaining a financial solidity
Strong commitment to maintaining a financial solidity 2025 Guidance confirmed on NFP/EBITDA at 3,2x. Rating KPIs are expected to be in line with metrics, targeting an 80% of EBITDA coming from regulated and quasi-regulated activities. BBB/Stable BBB/Stable DEBT1 and FFO2 €M NLAD1 and FFO2 €M 6.000 M
Slide 16: Sustainable finance
Sustainable finance Our commitment to Sustainable Finance Sustainability-Linked Loans – (% on Total Debt) both Term Loans and RCFs - to enhance Group’s commitment H1 2025 89% ESG in terms of long-term KPI-LINKED sustainable strategy 2027 90% On track LOANS ESG KPI-Linked Loans envisage core KPIs
Slide 17: Framework components
Framework components Green Financing Component Sustainability-Linked Component Category Eligible Projects/Activities SDG KPI Target SDG • Hydroelectric power electricity -4.5% -10% -47% Renewable generation Energy • Solar PV electricity generation KPI#1 317 328 332 317 298 • Wind power electricity g
Slide 18: Annexes - Strategy
⦿ COMPANY STRATEGY ⦿ H1 2025 RESULTS INVESTORS’ PRESENTATION ⦿ DEBT PROFILE ⦿ ANNEXES - Strategy
Slide 19: Iren at a glance
Iren at a glance National player in District 2° Heating volumes with 102 Mcm 20% EBITDA made by: ~70% regulated and National player in the water 4° semi-regulated management with 3.0 M EBITDA FY 2024 inhabitants served activities 1.3 B€ ~30% unregulated activities (mainly energy 7° National player i
Slide 20: Synergies and operational efficiencies
Synergies and operational efficiencies SYNERGIES AND EFFICIENCIES ’24-’30 Rationalization activity: 1. Turnover and reskilling 2. Specialization hubs 31% 3. Streamlining of sales and engineering functions 4. Unification of call centre and customer billing 130 M€ 5. Integration of acquired companies
Slide 21: Growth already visible in the first part of the plan
Growth already visible in the first part of the plan EBITDA NET PROFIT 2024-2030 GROWTH PILLARS: 6% CAGR M€ 7% CAGR ⦿ Organic growth: >+550 M€ M€ Inorganic growth: +95 M€ 7% 9% ⦿ CAGR CAGR ⦿ Efficiencies and synergies: +130 M€ ~1,800 >400 ⦿ Asset rotation: -40 M€ 1,550 360 1,450 320 ⦿ Scenario and r
Slide 22: Net debt evolution
Net debt evolution NET DEBT TIME EVOLUTION 4.9 Net debt (B€) B€ B€ 4.8 1.6 4.9 3.9 0.3 7.8 (0.8) 3.9 3.5x Maximum threshold Financial flexibility consistent with current ratings’ 3.3 3.1 parameters 2.7 Net debt/EBITDA (x) (7.9) 2023 Operational Net capex Dividends Asset disposal Other 2030 cash flow
Slide 23: Dividend policy with floor until 2027
Dividend policy with floor until 2027 DIVIDEND POLICY maximum between: 60% PAY-OUT of ordinary Group’s net income 8% CAGR ⦿ ⦿ 8% DPS growth until 2027 FLOOR: 16.16 Dividend per share, c€ 14.97 13.86 12.83 11.88 DIVIDEND PAYOUT RATIO 60% 2023 2024 2025 2026 2027 2028 2030 INVESTORS’ PRESENTATION STRA
Slide 24: Networks: service quality and investments drive growth
Networks: service quality and investments drive growth WATER ELECTRICITY GAS CAPEX ⦿ Network upgrading ⦿ Network upgrading ⦿ Maintenance of ⦿ Increased 13% distribution network investments in ⦿ 4 new purification plants ⦿ 5 new primary substations distribution Network replacement 2.8B€ ⦿ networks 58
Slide 25: Waste: collection development and energy recovery
Waste: collection development and energy recovery TREATMENT AND COLLECTION CAPEX DISPOSAL ⦿ Territorial expansion through ⦿ Waste treatment facilities ⦿ EGEA consolidation in tenders and consolidations, not development (6 new plants) collection activity 36% only in historical territories 1.6B€ ⦿ Ene
Slide 26: Energy: decarbonization of energy generation
Energy: decarbonization of energy generation CCGT, THERMO ENERGY RES AND HEAT EFFICIENCY CAPEX ⦿ Development of ⦿ Air cooler installation on ⦿ Rebuilding activity on ⦿ EGEA consolidation in greenfield renewable CCGT private and public district heating and public 19% capacity sector lighting Turbigo
Slide 27: Market: long term valorisation of customers
Market: long term valorisation of customers CLIENTS SERVICES CAPEX ⦿ Increasing EE clients due to ⦿ Boost cross-selling of Iren Plus ⦿ EGEA customer base electrification of consumptions products and services for increased consolidation household loyalty 0.7B€ ⦿ Medium and long term PPA with ⦿ Consol
Slide 28: BP - Industrial KPIs
BP - Industrial KPIs 2023 2027 2030 Waste collected (Mton) 2.1 2.7 3.0 Waste treated in Iren’s plants (Mton) 2.7 3.9 4.4 WTE’s electricity sold (TWh) 0.5 0.5 0.8 Hydro production (TWh) 1.1 1.3 1.3 Solar and Wind production (TWh) 0.2 1.0 2.4 Thermo and CCGT production (TWh) 6.9 6.4 2.9 Heat sold (TWh
Slide 29: Business plan's energy scenario
Business plan’s energy scenario 2023 2027 2030 PUN (€/MWh) 127.4 98.6 94.6 PSV (€/MWh) 42.3 28.3 25.5 ETS (€/Ton) 83.5 102 116 Clean spark spread Iren 5.0 3.0 2.0 (€/MWh) INVESTORS’ PRESENTATION STRATEGY H1 2025 RESULTS DEBT PROFILE ANNEXES 29
Slide 30: Annexes - Results
⦿ COMPANY STRATEGY ⦿ H1 2025 RESULTS INVESTORS’ PRESENTATION ⦿ DEBT PROFILE ⦿ ANNEXES - Results
Slide 31: Networks: Tariffs increase, EGEA consolidation and non-recurring items
NETWORKS NETWORKS NETWORKS Tariffs increase, EGEA consolidation and non-recurring items €M +14% +12% 182 163 +35% 23 14 271 17 12 7 42 +31% 55 238 104 - 104 (€M) H1 '24 H1 '25 Water Electricity Gas H1 ’24 Water Electricity Gas H1 ’25 +9% 3,347 3,064 Organic growth (+11€M) supported by investments
Slide 32: Waste: Growth underpinned by collection and energy revenues
NETWORKS WASTE Growth underpinned by collection and energy revenues €M +6% +6% 5 2 132 74 125 70 +13% 40 45 30 -3% 29 (€M) H1 '24 H1 '25 Collection Treatment & Disposal H1 ’24 Collection Treatment & disposal H1 ’25 Collection activities continue a growth path due to the regulatory tariffs update 2
Slide 33: Energy: Strong EBITDA increase in all business lines
NETWORKS ENERGY Strong EBITDA increase in all business lines €M +30% +20% 1,536 1,283 8 4 175 18 10 135 (GWht) H1 '24 H1 '25 H1 ’24 RES CCGT & thermo Heat Energy efficiency H1 ’25 & others RES benefited by higher hydro production +15% 4,363 CCGT & thermo positive results thanks to increased clea
Slide 34: Market: EGEA consolidation more than counterbalanced lower gas margins
NETWORKS MARKET EGEA consolidation more than counterbalanced lower gas margins €M +7% +28% 3,1 +10% 410 452 10 1 148 2,5 138 -1 (TWh) (Mcm) H1 ‘24 H1 ‘25 H1 ‘24 H1 ‘25 POWER GAS H1 ’24 Electricity Gas Iren Plus & Others H1 ’25 Egea consolidation positive contribution for around 16€M (+7€M in +5% e
Slide 35: Ebitda to group net profit reconciliation
Ebitda to group net profit reconciliation €M H1 '24* H1 '25 Δ Δ% EBITDA 636 726 90 14,2% Capex and the integration of EGEA (17€M) drove the depreciation growth D&A -321 -350 Higher provisions to bad debt related to waste Provisions to bad debt -34 -45 collection tariffs and EGEA consolidation Ot
Slide 36: 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 37: Networks concessions
Networks concessions GAS WATER ELECTRICITY CONCESSIONS CONCESSIONS CONCESSIONS ATEM EXPIRY AREA EXPIRY AREA EXPIRY Piacenza 2040 Genova 1 Expired Torino 2030 Reggio Emilia 2043 Parma Expired Parma 2030 Genova 2032 Reggio Emilia Expired Vercelli 2030 Parma1 2027 Vercelli Expired Vercelli 2023 (exsten
Slide 38: Concessions
Concessions HYDROELECTRIC COLLECTION CONCESSIONS WASTE CONCESSIONS HYDROELECTRIC AREA EXPIRY AREA POWER (MW) EXPIRY PLANT Parma 2037 Piemonte 1 Pont Ventoux-Susa 157 2034 Piacenza 2037 Expired 2010 Piemonte 2 Valle Orco e S. Mauro 300 PPP proposal Expired Reggio Emilia (extension ex lege) S. Lorenzo
Slide 39: Annexes - ESG
⦿ COMPANY STRATEGY ⦿ H1 2025 RESULTS INVESTORS’ PRESENTATION ⦿ DEBT PROFILE ⦿ ANNEXES - ESG
Slide 40: Decarbonization
Decarbonization 2020 2024 2027 2030 332 Carbon intensity of energy generation (scope 1) (gCO2/kWh) 315 176 287 95% 100% Certified renewable electricity purchased (%) (target reduction emission scope 2) 16% 0% Use of sold 0% products (gas) -25% Emission scope 3 0% -13% Fuel and energy related activit
Slide 41: Circular economy
Circular economy 2020 2024 2027 2030 76.5% 74.6% 72.1% Legacy regions 69.3% Waste collection (%) 74.7% 71.0% 63.1% 65.5% Other territories 1,501 1,539 Material recovery from 1,062 waste in our plants (kton) 492 28.9 28.9 Biomethan from organic 9.9 0.0 waste (mln mc) 20 Reuse of water from 10 6 6 pur
Slide 42: Water resources
Water resources 2020 2024 2027 2030 4,265 3,527 3,970 Wastewater plants capacity (k 3,785 equivalent inhabitants) 281 Water withdrawals from the environment 260 261 257 (liters/inhabitant/day) 33.3% Water network leaks (%) 30.2% Legacy regions 25.7% 20.0% 33.3% 30.8% All regions 26.7% 22.0% 85.6% 77
Slide 43: Resilient cities
Resilient cities 2020 2024 2027 2030 125 District heated volumes (mln mc) 102 118 97 44% Eco-vehicles on total fleet (%) 29% 19% 22% 3,000 2,465 Green electricity sold to retail 2,395 clients (GWh) 326 Energy saving from Iren 642 products/services (kTep) 543 473 71 43
Slide 44: People
People 2020 2024 2027 2030 Employment, development and +4,384 +4,856 +5,559 enhancement of skills New hires* (N.) 25 24 25 22 Training hours per capita (N.) 86% 93% 94% Employees evaluated on 54% performance** (%) Diversity & Inclusion 30.0% 25.9% 26.5% 22.8% Women in managerial roles (%) 54.0% ≥55.
Slide 45: Focus on EU Taxonomy in 2024
Focus on EU Taxonomy in 2024 Eligible, aligned and non-eligible activities related to the KPIs required by the EU Taxonomy €M 6,043 1,761 956 Eligible activities – aligned 33% 36% 58% NETWORKS Power Gas Water 3% Eligible activities – not aligned 20% Treatment and material WASTE Collection recovery 5
Slide 46: Disclaimer
Disclaimer The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of IREN S.p.A., Mr. Giovanni Gazza, hereby declares, pursuant to paragraph 2 of article 154 bis of the Consolidated Finance Act (Legislative Decree No 58/1998), that the accounting infor