Iren S.p.a. · MIL:IRE
Iren — H1 2022 Earnings Presentation
19 slides from Iren's earnings presentation, Jul 28, 2022
Slide 1: H1 2022 Results
H1 2022 RESULTS 28th July 2022
Slide 2: Key Highlights
Key Highlights Resilience of the integrated energy Sound organic value chain and growth driven by Capacity Market industrial margins stabilization Continuous WC FY 2022 Guidance EBITDA +9% yoy performance, able to offset discipline, with Net confirmed EBIT +13% yoy energy efficiency exceptional drou
Slide 3: ESG KPIs ahead of Business Plan targets
ESG KPIs ahead of Business Plan targets Green transition Local presence Service quality Carbon On track DH volumes Physical Ahead On track Intensity gCO2/kWh 392 321* Mcm 99 Stores’ # 9.7 97 Customer 8.8 Satisfaction Index H1 '21 H1 '22 H1 '21 H1 '22 H1 '21 H1 '22 Biomethane On track Sorted waste On
Slide 4: Growth path confirmed, supported by organic growth and RES investments
Growth path confirmed, supported by organic growth and RES investments (€M) H1 '21 H1 '22 Δ Δ% EBITDA EVOLUTION +9% Revenues 2,004 3,712 1,708 85.2% +8% EBITDA 516 563 47 9.0% 72 EBIT 250 283 33 13.1% 28 542 21 563 (€M) 516 503 3 -64 Group net profit 193 133 -60 -31.0% -13 Group net profit adj.* 152
Slide 5: WACC reduction fully offset by RAB expansion
NETWORKS NETWORKS WACC reduction fully offset by RAB expansion GROSS CAPEX (€M) +4% +14% +2% 130 114 190 5 1 187 11 198 -10% 18 184 20 26 -6 -3 +13% 23 +21% 86 71 (€M) H1 '21 H1 '22 Water Electricity Gas H1 ’21 One-offs ’21 Water Electricity Gas One-offs ’22 H1 ’22 RAB +7% RAB increased by 7% led
Slide 6: Growth led by treatment activities in a favorable energy scenario
WASTE NETWORKS Growth led by treatment activities in a favorable energy scenario WASTE MANAGED (€M) -2% +29% 1.752 1.714 33 126 449 394 -12% 98 -5 1.303 1.320 +1% (kTon) H1 '21 H1 '22 H1 ’21 Treatment & Disposal Collection H1 ’22 Urban waste Other waste WTEs ENERGY SOLD +6% Favourable energy price
Slide 7: Cogeneration and RES more than offsetting the severe drought
ENERGY NETWORKS Cogeneration and RES more than offsetting the severe drought +54% HEAT DISTRIBUTED -2% (€M) +55% 12 1,877 1,840 17 23 201 6 207 56 -37 134 130 -4 (GWht) H1 '21 H1 '22 H1 ’21 One- Heat CCGT & RES Energy Hydro One- H1 ’22 ELECTRICITY PRODUCED offs ’21 Thermo efficiency offs ’22 -6% H
Slide 8: Unfavourable market scenario combined with reduced contribution from hydro
MARKET NETWORKS Unfavourable market scenario combined with reduced contribution from hydro ELECTRICITY SOLD -68% +37% (€M) -71% 4,645 93 90 3,398 -3 +100% 1.884 831 -20% 1.137 1.423 3 26 4 30 1.623 -52 1.144 +42% (GWh) -15 H1 '21 H1 '22 Retail & SME Business Wholesale H1 ’21 One-offs ’21 Electricity
Slide 9: EBITDA to Group Net Profit reconciliation
EBITDA to Group Net Profit reconciliation (€M) H1 '21 H1 '22 Δ Δ% EBITDA 516.3 562.7 46.4 9.0% D&A -228.2 -251.6 Bad debts provision in line with last year’s pandemic Provisions to bad debt -33.7 -35.6 emergency period, to account for doubling of revenues Other provisions and write-downs -4.2 7.4
Slide 10: Net Financial Position Evolution (H1 2022 vs FY2021)
Net Financial Position Evolution (H1 2022 vs FY2021) € +492M (+17%) (€M) 165 3.398 279 2.906 338 -2 125 150 -563 Operating cash flow levered € -288M FY’ 21 Ebitda Other Change in NWC Net Capex M&A Dividends MtM Derivatives H1 ’22 variations* * Including €130M of taxes Continuous effective and disc
Slide 11: Gas procurement strategy status update
Gas procurement strategy status update Overall gas storage increased vs. last year • Almost 60% of Iren annual needs (~2.6Bcm) already Bilateral contracts with large players, with Iren not responsible secured, of which 100% for final clients for procurement activities • The remaining portion wil
Slide 12: Closing Remarks
Closing Remarks Once again, the positive results Renewables execution plan is on Financial discipline sustained by a confirm the low risk profile of our track with 220 MW in operation or sound cash flow generation and an well-diversified portfolio of activities under construction in line with FY eff
Slide 13: Annexes
ANNEXES
Slide 14: 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 15: H1 2022 Business units' results
H1 2022 Business units’ results NETWORKS WASTE €M H1 '21 H1 '22 Δ Δ% €M H1 '21 H1 '22 Δ Δ% Revenues 442 528 86 20% Revenues 435 486 51 12% Ebitda 190 198 8 4% Ebitda 99 126 27 28% Electricity 40 37 -3 -7% Collection 30 25 -5 -17% Gas 46 41 -5 -11% Treatment & disposal 68 101 33 49% Water 104 120 16
Slide 16: Financials
Financials INTEREST RATE DEBT STRUCTURE MATURITIES 4% 1% 562 562 564 13% (€M) 34% 383 49% 83% 50 61 16% Fixed Swap Variable Green Bonds EIB-CEB Bonds Loans 2022 2023 2024 2025 2026 2027 96% of gross debt at fixed interest rate Average long-term debt duration of about 5.2 years vs 5.7 years in H1
Slide 17: Industrial KPIs
Industrial KPIs H1 ’21 H1 ‘22 Δ% Electricity distributed (GWh) 1,808 1,821 0.7% Gas distributed (mcm) 777 714 -8.2% Water distributed (mcm) 86 84 -2.6% Waste collected (Kton) 842 820 -2.6% Waste treated (Kton) 1,402 1,411 0.6% Thermal production (GWh) 3,878 3,860 -0.5% Renewable production (GWh) 735
Slide 18: Scenario
Scenario H1 ’21 H1 ‘22 Δ% Gas Demand (bcm) 38.6 38.0 -1.6% PSV €/000 scm 23.1 103.5 (*) Energy Demand (Twh) 154.9 155.9 0.6% PUN (€/Mwh) 66.9 248.6 (*) CO2 €/Ton 43.7 83.3 90,6% Green Cert. Hydro (€/Mwh) 109.4 42.9 -60.8% TEE (€/TEE) 260 255 -1.9% (*) Variation greater than 100% 18 KEY EBITDA - CLOS
Slide 19: 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