Iren S.p.a. · MIL:IRE

Iren — Q1 2023 Earnings Presentation

17 slides from Iren's earnings presentation, May 11, 2023

  1. Slide 1: Q1 2023 Results

    Q1 2023 RESULTS May 11th, 2023

  2. Slide 2: Key Highlights

    Key Highlights Effectiveness in EBITDA on track with Organic growth, extracting value full-year guidance, led by strong from M&A investments, The recent rating FY 2023 Guidance driven by the transactions offset by inflation upgrade validated confirmed recovery of the Market BU’s still not captured t

  3. Slide 3: On track on all sustainable key indicators

    On track on all sustainable key indicators Green transition Local presence Service quality Carbon On track Sorted waste Physical On track On track Intensity gCO2/kWh 305 collection Stores’ # 9.7 301 Customer 9.4 69% 70% Satisfaction Index Q1 '22 Q1 '23 Q1 ‘23 Q1 '22 Q1 '23 Q1 ‘22 Material On track D

  4. Slide 4: Market profitability recovery offset by severe energy volumes contraction

    Market profitability recovery offset by severe energy volumes contraction (€M) EBITDA EVOLUTION Q1 '22 Q1 '23 Δ Δ% Revenues 2,186 2,020 -166 -7.6% +2% EBITDA 363 368 6 1.6% (€M) 363 1 3 32 368 EBIT 225 210 -15 -6.5% -31 Group net profit 118 135 17 14.6% Gross investments 378 265 -113 -29.8% Net Fina

  5. Slide 5: RAB expansion offset by inflation-impacted operational costs

    NETWORKS NETWORKS RAB expansion offset by inflation-impacted operational costs GROSS CAPEX +2% +31% (€M) 95 1 0 0 96 83 64 10 +12% 9 19 +52% 13 54 42 +28% (€M) Q1 '22 Q1 '23 Water Electricity Gas Q1 ’22 Water Electricity Gas Q1 ’23 RAB +7% 2,558 2,739  7% RAB expansion led by Water and Electricity

  6. Slide 6: Waste performance in line with prior year

    WASTE NETWORKS Waste performance in line with prior year WASTE MANAGED +17% (€M) 923 +4% 791 234 6 186 +26% 65 68 -3 605 689 +14% (kTon) Q1 '22 Q1 '23 Urban waste Other waste Q1 ’22 Collection Treatment & Disposal Q1 ’23 WTEs ENERGY SOLD -3% 279 271  Treatment & Disposal: favourable contribution fr

  7. Slide 7: Lower volumes affecting energy profitability across the board

    ENERGY NETWORKS Lower volumes affecting energy profitability across the board HEAT DISTRIBUTED (€M) -18% -16% 10 7 165 1,526 134 1,278 -42 -6 (GWht) Q1 '22 Q1 '23 Q1 ’22 Hydro & PV Energy Heat* CCGT & Q1 ’23 efficiency thermo ELECTRICITY PRODUCED  Contracted heat volumes due to mild temperatures an

  8. Slide 8: Progressive recovery of customers' portfolio value

    MARKET NETWORKS Progressive recovery of customers’ portfolio value ELECTRICITY SOLD +83% (€M) -41% 13 70 21 2,656 -2 -73% 1,567 38 1,252* -40% 343 584 348 820 +9% 876 (GWh) Q1 ’22 Electricity Gas IrenPlus & Other Q1 ’23 Q1 '22 Q1 '23 Retail & SME Business Wholesale *Q1 2022 includes volumes related

  9. Slide 9: EBITDA to Group Net Profit reconciliation

    EBITDA to Group Net Profit reconciliation (€M) Q1 '22 Q1 '23 Δ Δ% EBITDA 363 368 6 1.6% D&A -122 -140  Higher depreciation as a result of new acquisitions and Provisions to bad debt -14 -16 industrial investments (still not captured by tariffs) carried-out during the period Other provisions and wri

  10. Slide 10: Net Financial Position Evolution (Q1 2023 vs FY2022)

    Net Financial Position Evolution (Q1 2023 vs FY2022) (€M) +369€M (+11%) Changes in WC 345 €M 191 7 6 3.716 345 3.347 58 130 Acceleration of capex in Q4 2022 120 €M -368 (temporary) Seasonality (temporary) 105 €M Change in waste collection 60 €M payment method Still not normalized gas 60 €M payment t

  11. Slide 11: Closing Remarks

    Closing Remarks  Continued growth based on recovery  ~350€M of changes in WC of Market profitability expected to be reabsorbed in the next quarters  Full availability of thermo facilities EBITDA +6% vs. FY 2022 since the beginning of May INDUSTRIALS FINANCIALS  The sale of a minority stake of Ga

  12. Slide 12: Annexes

    ANNEXES

  13. Slide 13: Q1 2023 Business units' results

    Q1 2023 Business units’ results NETWORKS WASTE €M Q1 '22 Q1 '23 Δ Δ% €M Q1 '22 Q1 '23 Δ Δ% Revenues 257 292 35 20% Revenues 244 302 58 24% Ebitda 95 96 1 2% Ebitda 65 68 3 4% Electricity 19 19 0 -2% Collection 13 19 6 41% Gas 21 21 0 -1% Water 55 56 2 4% Treatment & disposal 52 49 -3 -5% Ebit 48 45

  14. Slide 14: Financials

    Financials INTEREST RATE DEBT STRUCTURE MATURITIES 6% 2% (€M) 821 24% 23% 561 564 47% 70% 28% 50 65 Fixed Fixed-rate swaps Variable Green Bonds EIB-CEB ESG loans Bonds Loans 2023 2024 2025 2026 2027  94% of gross debt at fixed interest rate  Average long-term debt duration of about 5.0 years vs 5.

  15. Slide 15: Industrial KPIs

    Industrial KPIs Q1 ’22 Q1 ‘23 Δ% Electricity distributed (GWh) 935 900 -3% Gas distributed (mcm) 533 442 -19% Water distributed (mcm) 42 43 - Waste collected (Kton) 390 480 +23% Waste treated (Kton) 627 673 +7% Renewable production (GWh) 154 179 +16% Hydro production (GWh) 116 139 +20% Solar product

  16. Slide 16: Scenario

    Scenario Q1 ’22 Q1 ‘23 Δ% PSV €/000 scm 103,7 60,6 -42% PUN (€/Mwh) 248 157 -37% CO2 €/Ton 83 87 +5% Green Cert. Hydro (€/Mwh) 42,9 0 -100% 16 KEY EBITDA - CLOSING HIGHLIGHTS ESG FINANCIALS NETWORKS WASTE ENERGY MARKET NFP ANNEXES NET PROFIT REMARKS

  17. Slide 17: 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

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