Iren S.p.a. · MIL:IRE

Iren — Q1 2019 Earnings Presentation

14 slides from Iren's earnings presentation, May 13, 2019

  1. Slide 1: 2019 1Q Results

    © <A 2019 1Q RESULTS 13" May 2019

  2. Slide 2: Headwinds in market division offset by growth in all the other business units

    1Q 2019 Headwinds in market division offset by growth in all the other business units KPIs EBITDA BRIDGE E B IT DA m€ 1Q '18 1Q '19 Δ Δ% +1.9% NE T W ORKS 12 Revenues 1,066 1,278 212 19.9% 5 274 269 6 WASTE Ebitda 269 274 5 1.9% (17) (1) E NE R G Y Ebit 177 172 -5 -3.1% Net profit 103 100 -3 -3.2% M

  3. Slide 3: Networks: Organic growth and consolidation continue to be the main drivers

    NETWORKS Organic growth and consolidation continue to be the main drivers m€ 1Q '18 1Q '19 Δ Δ% E B IT DA • Energy and water networks: RAB growth combined with the Revenues 198 233 35 17% contribution in water sector of ACAM consolidation (started in April NE T W ORKS 2018). Ebitda 79 85 6 6% Electr

  4. Slide 4: Waste: Growth led by the disposal plants saturation

    WASTE Growth led by the disposal plants saturation • The Ebitda growth is affected by different positive elements: m€ 1Q '18 1Q '19 Δ Δ% E B IT DA • Higher volumes disposed in our plants led to an increase in electricity sold. REI contribution is up, mainly due to the lack of Revenues 138 175 37 27%

  5. Slide 5: Energy: Strong results in a normalized generation market with positive spark spreads

    ENERGY Strong results in a normalized generation market with positive spark spreads • Generation sector is impacted by higher volumes of electricity m€ 1Q '18 1Q '19 Δ Δ% E B IT DA production compared to last year and a negative thermal impact (5m€). Revenues 362 468 106 29% Some non-recurrent posit

  6. Slide 6: Market: Lower margins reported in 1Q which will be recovered during the year

    MARKET Lower margins reported in 1Q which will be recovered during the year • The negative results are due to a reduction in sale margins, a negative m€ 1Q '18 1Q '19 Δ Δ% E B IT DA thermal impact and the absence of positive balances (8m€) reported in Revenues 791 955 164 21% 1Q 2018 equally split i

  7. Slide 7: From EBITDA to Net Profit

    1Q 2019 From EBITDA to Net Profit 1Q '18 1Q '19 Δ Δ% E B IT DA EBITDA 269.2 274.2 5.0 1.9% • Increase in D&A related to higher capex, NE T W ORKS D&A -86.7 -97.7 consolidation process (ACAM and San Germano) and IFRS 16 application Provisions to bad debt -5.2 -4.7 WASTE EBIT 177.3 171.8 -5.5 -3.1% E

  8. Slide 8: Cash-flow and NFP Bridge

    1Q 2019 Cash-flow and NFP Bridge +72m€ E B IT DA -33m€ 2,525 NE T W ORKS 2,453 105 2,420 42 86 31 WASTE (107) 14 E NE R G Y (99) M A R KET E B IT NFP 31.12.18 Net Profit D&A, provisions NWC Variation Capex Consolidation Derivatives IFRS 16 NFP 31.03.19 C A S HF LOW and other & NF P DE B T S T R UC T

  9. Slide 9: Interest rate and debt structure

    1Q 2019 Interest rate and debt structure GROSS DEBT INTEREST RATE E B IT DA  90% of gross debt at fixed interest rate and 10% of gross 10% NE T W ORKS debt at variable interest rate. 17% WASTE  Average long-term debt duration of about 73% 5.2 years (5.6 years in 1Q 2018). E NE R G Y Fixed Swap Var

  10. Slide 10: Closing remarks

    1Q 2019 Closing remarks E B IT DA Our diversified business model, based on an integrated energy supply chain, has been allowing us to deal successfully with a very volatile energy scenario. Furthermore, the investments made in recent years enabled NE T W ORKS to sustain the organic growth reported i

  11. Slide 11: 2019 1Q Results - Annexes

    2019 1Q RESULTS 13th May 2019

  12. Slide 12: Scenario

    Scenario 1Q '18 1Q ’19 Δ% a Gas Demand (bcm) 26.0 25.5 -1.8% n TTF €/000 scm 223 195 -12.7% n PSV €/000 scm 231 220 -4.7% Energy Demand (Twh) 81.1 80.3 -1.0% e PUN (€/Mwh) 54.3 59.4 9.4% x CO2 €/Ton 10.3 22.2 115.8% e Green Cert. Hydro (€/Mwh) 99.0 92.1 -7.0% TEE (€/TEE) 250 259.9 3.9% s 2019 1Q RES

  13. Slide 13: Balance Sheet

    Balance Sheet FY '18 1Q ’19 a Net fixed assets 5,786 5,939 n Net Working Capital 132 147 Funds -621 -638 n Other assets and liabilities -282 -278 e Net invested capital 5,015 5,170 x Group Shareholders' equity 2,562 2,645 e Net Financial Position 2,453 2,525 s Total Funds 5,015 5,170 2019 1Q RESULTS

  14. Slide 14: Disclaimer

    Disclaimer The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of IREN S.p.A., Mr. Massimo Levrino, 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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