Iren S.p.a. · MIL:IRE
Iren — H1 2021 Earnings Presentation
17 slides from Iren's earnings presentation, Aug 3, 2021
Slide 1: Iren Results 1H 2021
IREN RESULTS 1H 2021 3rd August 2021
Slide 2: 1H 2021 Growth in all activities
1H 2021 Growth in all activities KPIs EBITDA BRIDGE (m€) m€ 1H '20 1H '21 Δ Δ% +9.3% Revenues 1.826 2.005 179 9.8% +9.5% 6 9 517 14 508 Ebitda 473 517 44 9.3% 5 19 473 464 Ebit 232 251 19 8.3% (9) Group net profit 133 193 60 45.6% Capex 254 279 25 9.8% 1H '20 One off '20 Networks Waste Energy Market
Slide 3: 1H 2021 ESG KPIs' enhancements
1H 2021 ESG KPIs’ enhancements NETWORKS ENERGY Depurated water volumes 123 mcm (+12%) Carbon intensity 312gCO2/kWh (-6%) E.E. interruptions duration 13.7 min (-4%) Energy saving 263k Tep (+1%) WASTE MARKET Sorted waste 69.1% (+0.9pp) Green energy sold ~420 GWh (+250 GWh) Recovered material volumes >
Slide 4: Networks: EBITDA bridge
NETWORKS Positive results led by organic growth + RAB growth +6.2% EBITDA BRIDGE (m€) +2.8% + Investments in line with BP 1 2 184 6 190 assumptions 179 2 + Districtization activities continue reaching 57% of the grid - Structural emerging costs and 1H '20 Water Electricity Gas One off '21 1H '21 Cov
Slide 5: Waste: EBITDA bridge
WASTE Full contribution from consolidation + I.Blu and Unieco positive +23.6% EBITDA BRIDGE (m€) contribution for 18m€ (consolidation started in 2H 2020) 21 99 80 + Positive contribution of plastic (2) and paper treatment + Higher PUN price favored the electricity sold 1H '20 Collection Treatment 1H
Slide 6: Energy: EBITDA bridge
ENERGY Hydro and energy efficiency led the growth + Higher hydro prices +5.4% EBITDA BRIDGE (m€) + Increase in heat volumes +11.7% distributed due to climate and 127 120 9 2 6 134 networks expansion (3) (7) + Higher clean spark spread + Increase in electricity volumes 1H '20 One off'20 Hydro & Ren C
Slide 7: Market: EBITDA bridge
MARKET Higher gas margins offset by the contraction in electricity + Lower costs of procurement and +8.1% use of gas stored in 2020, led to EBITDA BRIDGE (m€) +7.1% margin growth (19m€) + Customer base growth, +30k 86 84 14 2 90 3 93 retail & SMEs clients (2) (10) + Iren Plus positive contribution +
Slide 8: Profit and loss
1H 2021 Profit and loss FROM EBITDA TO GROUP NET PROFIT (m€) Higher depreciations due to capital intensive 1H '20 1H '21 Δ Δ% capex and the I.Blu and Unieco EBITDA 473.3 517.5 44.2 9.3% consolidations Depreciations -206.5 -228.5 Lower provisions to bad debt related to Provisions to bad debt -42.
Slide 9: Cash-flow and NFP
1H 2021 Cash-flow and NFP NET FINANCIAL POSITION BRIDGE (m€) +9m€ 2.950 149 4 2.959 279 27 (63) (208) (162) (17) FY '20 Net Profit D&A, NWC Variation Capex Consolidation Dividends SBB Derivatives 1H '21 *Restated provisions and other The cash flow generation offset the high level of capex and the
Slide 10: Financials
1H 2021 Financials INTEREST RATE DEBT STRUCTURE MATURITIES 3% 2% 12% 562 561 403 39% 46% 197 85% 50 60 13% Fixed Swap Variable Green Bonds EIB Bonds Loans 2021 2022 2023 2024 2025 2026 97% of gross debt at fixed interest rate Reduction in the average cost of debt (1.7% vs. 2.2% in Average long
Slide 11: Closing remarks
1H 2021 Closing remarks MAIN 1H 2021 TAKEAWAYS 2021 NEXT MONTHS EXPECTATIONS Strong contribution from the last consolidated companies in the Waste BU FY 2021 growth mainly driven by Energy activities at larger extent and by (I.Blu and Unieco) Waste activities Growth in the whole energy value c
Slide 12: Strategic highlights: the new BP will be unveiled in November
1H 2021 The new BP will be unveiled in November Reinforcement of the Group's sustainable development path with the extension of the time horizon to 10 years Strong focus on circular economy, water resources and resilient cities and greater emphasis on energy STRATEGIC HIGHLIGHTS transition and ren
Slide 13: Annexes
ANNEXES
Slide 14: Business units' results
1H 2021 Business units’ results NETWORKS WASTE m€ 1H '20 1H '21 Δ Δ% m€ 1H '20 1H ' 21 Δ Δ% Revenues 490 442 -48 -10% Revenues 350 436 86 25% Ebitda 179 190 11 6% Ebitda 80 99 19 24% Electricity 37 40 3 8% Collection 32 30 -2 -6% Gas 41 46 5 11% Water 101 104 3 3% Treatment & disposal 48 69 21 44% E
Slide 15: Scenario
1H 2021 Scenario 1H ’20 1H ‘21 Δ% Gas Demand (bcm) 35.8 39.8 11.1% TTF €/000 scm 80.0 229.0 187.0% PSV €/000 scm 97.0 231.0 137.9% Energy Demand (Twh) 119.6 127.5 6.6% PUN (€/Mwh) 32.2 66.9 107.6% CO2 €/Ton 22.0 43.8 98.9% Green Cert. Hydro (€/Mwh) 99.1 109.4 10.4% TEE (€/TEE) 265 260 -1.9% 15 CASHF
Slide 16: Balance sheet
1H 2021 Balance sheet FY ’20 1H ’21 Net fixed assets 6,582 6,626 Net Working Capital 42 23 Funds (657) (633) Other assets and liabilities (254) (214) Net invested capital 5,713 5,802 Group Shareholders' equity 2,763 2,843 Net Financial Position 2,950 2,959 Total Funds 5,713 5,802 16 CASHFLOW & CLOSI
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., 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