Iren S.p.a. · MIL:IRE

Iren — FY2023 Earnings Presentation

17 slides from Iren's earnings presentation, Mar 28, 2024

  1. Slide 1: FY 2023 Results

    FY 2023 RESULTS March 28th, 2024

  2. Slide 2: FY 2023 Results Highlights

    2 2 FY 2023 RESULTS HIGHLIGHTS ESG KEY FINANCIALS NETWORKS WASTE EBITDA growth (+14% YoY), well NFP/EBITDA below 3.3x Capex almost at 1€ billion, DPS proposed at ENERGY above the guidance (+10% YoY), thanks to cash flow generation expanding our asset-base 0.1188€/share MARKET driven mainly by the Ma

  3. Slide 3: ESG KPIs: Green transition, local presence, service quality

    3 3 FY 2023 RESULTS Green transition Local presence Service quality HIGHLIGHTS ESG Sorted waste collection Municipalities served in waste collection Green energy sale Ahead Ahead Ahead KEY FINANCIALS # 418 436 GWh 1,890 70% 71% 1,650 NETWORKS FY ‘22 FY ‘23 FY '22 FY '23 FY '22 FY '23 WASTE Material

  4. Slide 4: Key Financials

    4 FY 2023 RESULTS €M +13.5% FY '22 FY '23 Δ Δ% HIGHLIGHTS Revenues 7,863 6,490 -1,373 -17.5% 13.7% ESG (€M) EBITDA 1055 1,197 142 13.5% 174 1.207 1.197 -10 KEY FINANCIALS EBIT 464 465 1 0.2% 1.055 7 1.062 -8 -19 -2 NETWORKS EBIT Adj.* 468 506 38 8.1% Group net profit 226 255 29 12.8% WASTE ENERGY Te

  5. Slide 5: Networks

    NETWORKS NETWORKS 5 FY 2023 RESULTS €M -9% HIGHLIGHTS 328 +9% 356 45 ESG 46 -2% -2% 85 413 74 +15% KEY FINANCIALS 383 0 375 -30 -4 -4 NETWORKS 208 +9% 226 (€M) WASTE FY '22 FY '23 ENERGY Water Electricity Gas MARKET FY ’22 One off ’22 Ordinary Electricity Gas Water FY ’23 EBITDA EBITDA - NET PROFIT

  6. Slide 6: Waste

    NETWORKS 6 FY 2023 RESULTS €M -7% HIGHLIGHTS 264 10 202 193 +5% 245 ESG -29 113 134 -16% KEY FINANCIALS NETWORKS +51% 89 59 (€M) WASTE FY '22 FY '23 Collection Treatment & Disposal ENERGY FY ’22 Collection Treatment & disposal FY ’23 MARKET  Positive results in Collection, supported by effective in

  7. Slide 7: Energy

    NETWORKS 7 FY 2023 RESULTS €M HIGHLIGHTS +4% 2,874 +9% ESG -8% 2,642 33 52 KEY FINANCIALS 384 374 359 353 -21 -24 -9 -10 -6 NETWORKS (GWht) WASTE FY '22 FY '23 ENERGY FY ’22 One Ord. RES HeatHeat Heat CCGT & Energy Ord. One FY ’23 off ’22 EBITDA Pfor ‘22 thermo efficiency EBITDA off ’23 MARKET  RES

  8. Slide 8: Market

    NETWORKS 8 FY 2023 RESULTS €M 8,850 HIGHLIGHTS 23 -14% 198 7,590 ESG 166 2,819 -15 -3% 2,739 KEY FINANCIALS 2,328 -40% 1,404 NETWORKS 3,703 -7% 3,447 (GWh) WASTE FY '22 FY '23 10 14 Retail & SMEs Business Wholesale ENERGY FY ’22 One off ’22 Electricity Gas Iren Plus FY ’23 & Others MARKET 2,504 - 2,

  9. Slide 9: From EBITDA to Net Profit

    9 FY 2023 RESULTS €M FY '22 FY '23 Δ Δ% HIGHLIGHTS EBITDA 1055 1197 142 13.5%  Depreciation increase linked to new ESG D&A -523 -601 companies’ integrations and industrial investments made in the period KEY FINANCIALS Provisions to bad debt -63 -71  Higher provisions affected by Italian Other prov

  10. Slide 10: Net Financial Position

    10 FY 2023 RESULTS +585M (+18%) €M 70 3.932 HIGHLIGHTS 184 867 67 ESG 3.347 164 KEY FINANCIALS 250 180 NETWORKS -1.197 WASTE ENERGY MARKET FY ’22 Ebitda Other Superbonus Changes Net Tech. M&A Dividends MtM FY ’23 operational 110% & tax in WC Capex Derivatives changes credits EBITDA - NET PROFIT NFP

  11. Slide 11: Guidance 2024

    11 FY 2023 RESULTS HIGHLIGHTS ESG KEY FINANCIALS  Increased EBITDA in a range of 1.220/1.230M€ NETWORKS Guidance  Gross Investments (excluding incentives) around 1B€ WASTE 2024  NFP/EBITDA: ~3.3x ENERGY MARKET EBITDA - NET PROFIT NFP CLOSING REMARKS ANNEXES

  12. Slide 12: Annexes

    ANNEXES

  13. Slide 13: Results by business unit

    13 FY 2023 NETWORKS WASTE RESULTS €M FY '22 FY '23 Δ Δ% HIGHLIGHTS €M FY '22 FY ' 23 Δ Δ% Revenues 1.130 1.151 21 2% Revenues 1.089 1193 104 10% ESG Ebitda 413 375 -38 -9% Ebitda 264 245 -19 -7% Electricity 79 73 -6 -8% KEY FINANCIALS Collection 59 69 10 18% Gas 86 82 -4 -5% Water 248 220 -28 -11% T

  14. Slide 14: Debt structure

    14 FY 2023 RESULTS HIGHLIGHTS ESG 13% 1% 22% KEY FINANCIALS NETWORKS 21% 45% WASTE 66% 32% ENERGY MARKET Fixed Fixed-rate swap Variable Green Bond EIB-CEB ESG Loans Bonds Loans EBITDA - NET PROFIT NFP CLOSING REMARKS ANNEXES Fixed rate debt Average duration Average cost Sustainable debt

  15. Slide 15: Operating data

    15 FY 2023 RESULTS HIGHLIGHTS FY ’22 FY ‘23 Δ% ESG Electricity distributed (GWh) 3,687 3,556 -4% KEY FINANCIALS Gas distributed (mcm) 1,124 1,031 -8% NETWORKS Water distributed (mcm) 170 179 +6% WASTE Waste collected (Kton) 1,865 2,146 +15% ENERGY Waste treated (Kton) 2,622 2,717 +4% MARKET WTE’s el

  16. Slide 16: Market scenario

    16 FY 2023 RESULTS HIGHLIGHTS ESG FY ’22 FY ‘23 Δ% KEY FINANCIALS NETWORKS PSV €/000 scm 129 45 -65% WASTE PUN (€/MWh) 303 127 -58% ENERGY CO2 €/Ton 81 84 +4% MARKET Green Cert. Hydro (€/MWh) 42,9 0 n.s. EBITDA - NET PROFIT Clean spark spread (€/MWh) 22.5 -0.1 n.s. NFP CLOSING REMARKS ANNEXES

  17. Slide 17: Manager declaration and disclaimer

    17 FY 2023 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 58/1998), that t

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