Iren S.p.a. · MIL:IRE
Iren — Q1 2022 Earnings Presentation
18 slides from Iren's earnings presentation, May 12, 2022
Slide 1: Q1 2022 Results
Q1 2022 RESULTS 12th May 2022
Slide 2: Key Highlights
Key Highlights Integrated energy value chain enabling to counter Optimal working Capability to extract challenging scenario capital Set up of renewables value from + margin stabilization EBITDA +16% YoY management organization with integration of through capacity Gross Investments stabilizing Net fi
Slide 3: On track on all ESG KPIs with RES and service quality targets achieved ahead of plan
On track on all ESG KPIs with RES and service quality targets achieved ahead of plan Green transition Local presence Service quality PV capacity Ahead DH volumes Clients digital Ahead On track 99 MW 140 Mcm contacts 97 48% 60% 20 2021 Q1 '22 Q1 '21 Q1 '22 Q1 ‘21 Q1 ‘22 Carbon Sorted waste Average On
Slide 4: Sound Q1 2022 performance despite a very challenging energy & market scenario
Sound Q1 2022 performance despite a very challenging energy & market scenario (€M) EBITDA EVOLUTION Q1 '21 Q1 '22 Δ Δ% +16.2% Revenues 1,140 2,186 1,046 91.8% +16.3% EBITDA 312 363 51 16.2% 66 357 6 363 EBIT 184 226 42 22.9% (€M) 312 307 4 14 (34) Group net profit* 120 118 -2 -1.7% (5) Gross investm
Slide 5: Networks: RAB expansion fully offsetting WACC reduction
NETWORKS NETWORKS RAB expansion fully offsetting WACC reduction - GROSS CAPEX +4% (€M) +14% 64 94 91 4 - - 95 56 +25% 13 10 (3) 10 -15% 9 36 42 +18% (€M) Q1 '21 Q1 '22 Water Gas Electricity Q1 '21 One-off '21 Water Electricity Gas Q1 '22 RAB +7% Allowed revenues growth, mainly in water business, s
Slide 6: Waste: Favourable market conditions combined with optimized industrial footprint
WASTE NETWORKS Favourable market conditions combined with optimized industrial footprint +26% WASTE MANAGED (€M) -6% 17 842 791 65 241 -23% 186 51 (3) 601 606 +1% (kTon) Q1 '21 Q1 '22 Urban waste Other waste Q1 '21 Treatment Collection Q1 '22 & Disposal WTEs ENERGY SOLD +15% WTEs saturation underp
Slide 7: Energy: Strong Thermoelectric and Heat performance along with new RES capacity
ENERGY NETWORKS Strong Thermoelectric and Heat performance along with new RES capacity +78% HEAT DISTRIBUTED (€M) +3% +71% 1,526 1,483 24 159 6 165 6 7 49 (20) 93 (GWht) Q1 '21 Q1 '22 Q1 '21 Heat Coge & Hydro RES Energ. Eff. One off '22 Q1 '22 Thermo ELECTRICITY PRODUCED Heat margin normalization
Slide 8: Market: Lower supply profitability driven by natural hedging management
MARKET NETWORKS Lower supply profitability driven by natural hedging management -48% RETAIL & SMEs CLIENTS (€M) -47% +2% 74 72 2,003 2,052 (2) 954 965 +1% 2 38 1,049 +4% 1,087 (28) (8) (n. 000) FY '21 Q1 '22 Q1 '21 One off '21 Electricity Gas Iren Plus Q1 '22 Electricity Gas & others IREN PLUS – Pen
Slide 9: EBITDA to Group Net Profit reconciliation
EBITDA to Group Net Profit reconciliation (€M) Q1 '21 Q1 '22 Δ Δ% EBITDA 312.3 362.8 50.5 16.2% D&A -112.0 -121.2 Higher depreciations linked to increased investments Provisions to bad debt -2.0 -1.6 Other provisions and write-downs -14.6 -14.3 EBIT 183.7 225.8 42.1 22.9% Decrease in average cos
Slide 10: Net Financial Position Evolution (Q1 2022 vs FY2021)
Net Financial Position Evolution (Q1 2022 vs FY2021) €+51M (€M) 185 2,957 2,906 52** 82 141 (121) (127) (109) €378M Gross investments FY '21 Net Profit D&A, Change in NWC Net Consolidations Derivatives Q1 '22 provisions Capex and other **Capex contributions / incentives Investments increase largel
Slide 11: Closing Remarks
Closing Remarks Our strategic growth path Continuous working capital Strengthening of the integrated sustained by the sound Q1 optimization and discipline energy value chain strategy to performance tackle the scenario volatility Installed/authorized solar capacity New renewable capacity pipeline Wel
Slide 12: Annexes
ANNEXES
Slide 13: Iren at a glance
Iren at a glance Energy Infrastructure Water Service Urban Waste Collection REGULATED ACTIVITIES (46% of Ebitda) Hydroelectric Green Certificates District Heating Urban Waste Disposal QUASI >7million REGULATED ACTIVITIES INHABITANTS IN IREN’S 3 (24% of Ebitda) LEGACY REGIONS Generation Energy Market
Slide 14: Q1 2022 Business units' results
Q1 2022 Business units’ results NETWORKS WASTE €M Q1 '21 Q1 '22 Δ Δ% €M Q1 '21 Q1 ' 22 Δ Δ% Revenues 252 257 5 2% Revenues 217 244 27 12% Ebitda 94 95 1 1% Ebitda 51 65 14 27% Electricity 19 19 0 3% Collection 16 13 -3 -19% Gas 22 21 -1 5% Treatment & disposal 35 52 17 49% Water 54 55 1 2% Ebit 48 4
Slide 15: Financials
Financials INTEREST RATE DEBT STRUCTURE MATURITIES 1% 1% 13% 561 561 564 (€M) 35% 402 51% 86% 50 60 13% Fixed Swap Variable Green Bonds EIB-CEB Bonds Loans 2022 2023 2024 2025 2026 2027 99% of gross debt at fixed interest rate New Sustainability Financing Framework published Average long-term
Slide 16: Industrial KPIs
Industrial KPIs Q1 ’21 Q1 ‘22 Δ% Electricity distributed (GWh) 918 935 1.9% Gas distributed (mcm) 570 533 -6.5% Water distributed (mcm) 44 42 -2.8% Waste collected (Kton) 397 390 -1.8% Waste treated (Kton) 707 706 -0.1% Thermal production (GWh) 2,425 2,805 15.7% Renewable production (GWh) 391 154 -5
Slide 17: Scenario
Scenario Q1 ’21 Q1 ‘22 Δ% Gas Demand (bcm) 25.2 25.6 1.6% PSV €/000 scm 19.8 103.7 (*) Energy Demand (Twh) 78.3 78.4 0.1% PUN (€/Mwh) 59.2 248.1 (*) CO2 €/Ton 37.4 83.3 (*) Green Cert. Hydro (€/Mwh) 109.4 42.9 -60.8% TEE (€/TEE) 260 255 -1.9% (*) Variation greater than 100% 18 KEY EBITDA - CLOSING H
Slide 18: 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