Iren S.p.a. · MIL:IRE
Iren — 9M 2024 Earnings Presentation
18 slides from Iren's earnings presentation, Nov 12, 2024
Slide 1: 9M 2024 Results
9M 2024 RESULTS November 12th, 2024
Slide 2: Key Highlights
2 KEY HIGHLIGHTS 2 9M 2024 RESULTS HIGHLIGHTS ESG KEY FINANCIALS NETWORKS WASTE EBITDA growth (+8% YoY), NFP at 4.1 €B Strengthening territorial 6th Green Bond issued in Guidance confirmed on ENERGY driven mainly by Networks after capex and EGEA’s presence in electricity September for 500M€ the top
Slide 3: Sustainable growth continued throughout the 9 months
3 SUSTAINABLE GROWTH CONTINUED THROUGHOUT THE 9 MONTHS 3 9M 2024 RESULTS Green transition Local presence Service quality HIGHLIGHTS ESG Municipalities served in waste collection Stores’ Customer Satisfaction Index Carbon Intensity On track On track On track KEY FINANCIALS 338 489 gCO2/kWh 324 # 431
Slide 4: 9M Results at a Glance
4 9M RESULTS AT A GLANCE 9M 2024 EBITDA EVOLUTION RESULTS €M +8% HIGHLIGHTS 9M '23 9M ' 24 Δ Δ% ESG Revenues 4.626 4. 157 -469 -10% (€M) Energy Efficiency EBITDA 857 924 67 8% 79 7 59 924 KEY FINANCIALS Generation 857 850 EBIT 324 379 55 17% -37 -34 -7 NETWORKS Group net profit 177 193 16 9% -71 WAS
Slide 5: Networks: Investments and regulation underpinning EBITDA growth
NETWORKS NETWORKS NETWORKS Investments and regulation underpinning EBITDA growth 5 9M 2024 RESULTS EBITDA EVOLUTION GROSS CAPEX €M +28% HIGHLIGHTS +13% 254 225 27 ESG 14 8 359 31 57 -13% 63 55 KEY FINANCIALS 280 +15% NETWORKS 163 139 +17% (€M) WASTE 9M '23 9M '24 ENERGY Water Electricity Gas 9M ’23
Slide 6: Waste: Business Unit's turnaround, with a recovery of 14€M in Q3
WASTE NETWORKS Business Unit’s turnaround, with a recovery of 14€M in Q3 6 9M 2024 RESULTS EBITDA EVOLUTION CAPEX €M +4% 137 HIGHLIGHTS 27 -22% 187 194 ESG 107 -20 79 -23% KEY FINANCIALS 61 NETWORKS 58 -21% 46 (€M) WASTE 9M '23 9M '24 Collection Treatment & Disposal ENERGY 9M ’23 Collection Treatmen
Slide 7: Energy: Higher volumes offset by prices and Superbonus expiry
ENERGY NETWORKS Higher volumes offset by prices and Superbonus expiry 7 9M 2024 RESULTS HEAT SOLD EBITDA EVOLUTION €M HIGHLIGHTS -29% +6% 1,350 1,273 ESG +9% 270 263 6 KEY FINANCIALS -7 -9 -31 192 NETWORKS -37 (GWht) WASTE 9M '23 9M '24 ENERGY 9M 2023 One off 9M 2023 RES Heat CCGT & Energy 9M 2024 o
Slide 8: Market: Profitability growth despite increased market competitiveness
MARKET NETWORKS 8 Profitability growth despite increased market competitiveness 9M 2024 RESULTS EBITDA EVOLUTION FINAL CLIENTS’ VOLUMES €M +49% +10% HIGHLIGHTS 4,0 3,6 ESG 17 +9% 4 179 -8% 38 507 KEY FINANCIALS 465 120 NETWORKS (TWh) (Mcm) WASTE 9M ‘23 9M ‘24 9M ‘23 9M ‘24 POWER GAS ENERGY 9M ’23 El
Slide 9: EBITDA to Group Net Profit Reconciliation
9 EBITDA TO GROUP NET PROFIT RECONCILIATION 9M 2024 RESULTS €M HIGHLIGHTS 9M '23 9M '24 Δ Δ% ▪ Depreciation increase linked to investments ESG EBITDA 857 924 66 7.7% made and new companies’ integrations D&A -436 -481 KEY FINANCIALS ▪ Positive variation in other provisions mainly Provisions to bad de
Slide 10: Net Financial Position Evolution (9M 2024 vs FY2023)
10 NET FINANCIAL POSITION EVOLUTION (9M 2024 VS FY2023) 9M 2024 RESULTS +173 €M (+4%) €M 179 36 4.107 HIGHLIGHTS 3.934 111 560 ESG 374 KEY FINANCIALS 89 -252 NETWORKS -924 WASTE Operating cash flow levered -713€M ENERGY MARKET FY ’23 Ebitda Other Superbonus Changes Capex M&A Dividends MtM 9M ’24 ope
Slide 11: EGEA Consolidation from January 2025
11 EGEA CONSOLIDATION from January 2025 9M 2024 RESULTS HIGHLIGHTS >100M€ ~300k ~10 Mcm District heating <200 k ESG water + gas RAB Inhabitants served gas + power clients by waste collection volumes KEY FINANCIALS NETWORKS WASTE +20 €M ENERGY Egea capital increase to support district MARKET heating
Slide 12: Closing Remarks
12 CLOSING REMARKS 9M 2024 RESULTS HIGHLIGHTS GUIDANCE 2024 CONFIRMED ESG KEY FINANCIALS NETWORKS ▪ EBITDA 1,250€M (+10€M vs. previous guidance; +4% vs. FY2023) WASTE ▪ Net profit 260/270€M (+4% vs. FY2023) ENERGY ▪ Gross Investments: ~1€B (including EGEA’s minority stake cash out) ▪ NFP/EBITDA: ~3.
Slide 13: Annexes
ANNEXES
Slide 14: 9M 2024 Business Units' Results
9M 2024 BUSINESS UNITS’ RESULTS 14 9M 2024 NETWORKS WASTE RESULTS €M 9M '23 9M '24 Δ Δ% HIGHLIGHTS €M 9M '23 9M '24 Δ Δ% Revenues 827 939 112 14% Revenues 879 937 58 7% ESG Ebitda 280 359 79 28% Ebitda 187 194 7 4% Electricity 59 67 8 14% KEY FINANCIALS Collection 55 82 27 49% Gas 60 74 14 23% Water
Slide 15: A Sound and Sustainable Debt Structure
15 A SOUND AND SUSTAINABLE DEBT STRUCTURE 9M 2024 RESULTS INTEREST RATE DEBT STRUCTURE HIGHLIGHTS ESG 11% 1% 18% KEY FINANCIALS 17% NETWORKS 55% WASTE 26% 72% ENERGY MARKET Fixed Fixed-rate swap Variable Green Bond EIB-CEB ESG Loans Bonds Loans EBITDA - NET PROFIT NFP CLOSING REMARKS 89% 4.7 years 2
Slide 16: Industrial KPIs
INDUSTRIAL KPIS 16 9M 2024 RESULTS HIGHLIGHTS 9M ’23 9M ‘24 Δ% ESG Electricity distributed (GWh) 2,622 2,704 +3% KEY FINANCIALS Gas distributed (mcm) 703 695 -1% NETWORKS Water sold (mcm) 133 131 -1% WASTE Waste collected (Kton) 1,602 1,716 +7% ENERGY Waste treated (Kton) 2,051 2,193 +7% MARKET WTE’
Slide 17: Scenario
SCENARIO 17 9M 2024 RESULTS HIGHLIGHTS ESG 9M ’23 9M ‘24 Δ% KEY FINANCIALS NETWORKS PSV €/000 scm 45 36 -20% WASTE PUN (€/MWh) 129 102 -21% ENERGY CO2 €/Ton 86 65 -24% MARKET Green Cert. Hydro (€/MWh) 0 42 n.s. EBITDA - NET PROFIT Clean spark spread (€/MWh) 0.6 -0.7 n.s. NFP CLOSING REMARKS ANNEXES
Slide 18: Disclaimer
18 DISCLAIMER 9M 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