Iren S.p.a. · MIL:IRE
Iren — Debt Investor Presentation (June 2025)
29 slides from Iren's debt investor presentation, Jun 19, 2025
Slide 1: Investors' Presentation - Mediobanca Credit Update
⦿ COMPANY STRATEGY ⦿ Q1 2025 RESULTS ⦿ DEBT PROFILE INVESTORS’ PRESENTATION ⦿ ANNEXES MEDIOBANCA CREDIT UPDATE London, 19 June 2025
Slide 2: Macrotrend and main development drivers
Macrotrend and main development drivers BUSINESS UNITS MACRO TREND IREN’S ACTIONS • Water resource scarcity • Sustainable water management NETWORKS • Electrification of consumption • Power grid upgrading • Quality of service • Performance improvement • Circular economy • Material and energy recovery
Slide 3: A new capital allocation to support the strategic vision
A new capital allocation to support the strategic vision Green Service transition quality ⦿ CAPITAL ALLOCATION REVIEW 1) Reallocation of investments with a selective approach to profitability 2) Financial discipline aimed at maintaining current rating levels 3) Extended visibility of dividend policy
Slide 4: Investments reallocation for a sound and visible plan
Investments reallocation for a sound and visible plan B€ 4.9 Regulated* Development 80% 3.3 60% Cumulated capex Corporate 8.2 B€ Market Waste Energy Networks 2024-2027 2028-2030 40% Maintenance 20% Unregulated ⦿ LOW EXECUTION ⦿ HIGH PREDICTABILITY ⦿ HIGH RISK OF RESULTS FLEXIBILITY *Including incent
Slide 5: Sustainability drives future investments
Sustainability drives future investments 24% Water resources 35% ⦿ 5 SUSTAINABILITY FOCUS AREAS DECLINE OUR INDUSTRIAL STRATEGY, Circular economy Decarbonization ~70% IN LINE WITH THE CSRD Resilient cities Sustainable Capex* People * Eligible for EU Taxonomy 30% Water leaks Material recovery Carbon
Slide 6: 2023-2027 EBITDA bridge
2023-2027 EBITDA bridge Cagr +7% €M 37 1,549 100 0 215 1,197 FY ’23 Networks Waste Energy Market 2027 Exp • organic growth • organic growth • 2023 energy • higher customer scenario base and EE • regulatory update • M&A (Sienambiente, normalisation clients’ margins collection, EGEA) • synergies • org
Slide 7: Sound and sustainable growth
Sound and sustainable growth CUMULATED CAPEX 8.2 B€ of which 600M€ flexible over the three-year period 2025-2027 EBITDA: Cagr 6% €M GROUP NET PROFIT: Cagr 7% €M FINANCIAL LEVERAGE 3.5x ~1,800 >400 Financial ~1,550 360 3.3x flexibility 255 3.1x 1,197 2.7x 2023 2027 2030 2023 2027 2030 2023 2027 2030
Slide 8: Q1 2025 Results
⦿ COMPANY STRATEGY ⦿ Q1 2025 RESULTS INVESTORS’ PRESENTATION ⦿ DEBT PROFILE ⦿ ANNEXES
Slide 9: Key Highlights
Key Highlights Guidance confirmed +9% YoY EBITDA growth M&A cash out over thanks to solid Q1 More than 20€M coming led by organic and 500€M sustained by results from EGEA integration inorganic growth hybrid bond led the net debt below 4€B INVESTORS’ PRESENTATION STRATEGY Q1 2025 RESULTS DEBT PROFILE
Slide 10: Sustainable growth continued throughout the quarter
Sustainable growth continued throughout the quarter Green transition Local presence Service quality Municipalities served in waste collection Power outages duration (SAIDI) Carbon Intensity On track On track On track 303 307 661 gCO2/kWh # # 489 5 4,4 Q1 '24 Q1 '25 Q1 '24 Q1 '25 Q1 '24 Q1 '25 Sorted
Slide 11: Q1 '25 results at a glance
Q1 ‘25 results at a glance €M +9% Q1 '24 Q1 ' 25 Δ Δ% +12% Revenues 1.568 2. 093 525 33% (€M) EBITDA 383 418 35 9% 26 0 418 383 7 2 EBIT 213 224 11 5% Group net profit 126 136 10 8% Technical capex 165 185 20 12% Net Financial Position 4083* 3. 972 -111 -3% Q1 ’24 Networks Waste Energy Market Q1 ’25
Slide 12: Net financial position evolution (Q1 2025 vs FY2024)
Net financial position evolution (Q1 2025 vs FY2024) €M -111 €M (-3%) 532 4.083 185 3.972 28 -494 -20 47 29 -418 Operating cash flow levered -314€M FY ’24 Ebitda Other Superbonus Changes Capex M&A Hybrid Bond MtM Q1 ’25 operational 110% & tax in WC Derivatives changes credits Sound operating cash
Slide 13: Closing remarks
Closing remarks Networks: growth confirmed EBITDA: 1,340 - 1,360M€ Waste: improvement of plants profitability confirmed Net profit: 300 - 310M€ Energy: higher production and clean spark spread Gross technical capex: ~0.9€B Market: maintaining margins in a competitive scenario M&A out
Slide 14: Debt Profile
⦿ COMPANY STRATEGY ⦿ Q1 2025 RESULTS INVESTORS’ PRESENTATION ⦿ DEBT PROFILE ⦿ ANNEXES
Slide 15: A sound and sustainable debt structure
A sound and sustainable debt structure 3% 10% €M Green Bonds Traditional Bonds Loans 720 642 26% 557 220 549 553 550 550 550 61% 142 Cash 81 69 50 50 45 34% 45% Undrawn committed 509 credit lines 476 500 500 484 500 500 500 Green Bonds ESG Loans Bonds Loans 87 Undrawn uncommitted 87 credit lines 40
Slide 16: Strong commitment to maintaining a financial solidity
Strong commitment to maintaining a financial solidity 2025 Guidance confirmed on NFP/EBITDA at 3,2x. Rating KPIs are expected to be in line with metrics, targeting an 80% of EBITDA coming from regulated and quasi-regulated activities. BBB/Stable BBB/Stable DEBT1 and FFO2 €M NLAD1 and FFO2 €M 6000 MA
Slide 17: Sustainable finance
Sustainable finance Term Loans and RCFs entered by Iren for a total amount of Our commitment to Sustainable Finance 700€M (% on Total Debt) Sustainability-Linked Loans to Q1 2025 87% ESG enhance Group’s commitment in terms of long-term KPI-LINKED sustainable strategy 2027 90% On track LOANS ES
Slide 18: Framework components
Framework components Green Financing Component Sustainability-Linked Component Category Eligible Projects/Activities SDG KPI Target SDG • Hydroelectric power electricity -4.5% -10% -47% Renewable generation Energy • Solar PV electricity generation KPI#1 317 328 332 317 298 • Wind power electricity g
Slide 19: Annexes - Strategy
⦿ COMPANY STRATEGY ⦿ Q1 2025 RESULTS INVESTORS’ PRESENTATION ⦿ DEBT PROFILE ⦿ ANNEXES - Strategy
Slide 20: Iren at a glance
Iren at a glance National player in District 2° Heating volumes with 102 Mcm 20% EBITDA made by: ~70% regulated and National player in the water 4° semi-regulated management with 3.0 M EBITDA FY 2024 inhabitants served activities 1.3 B€ ~30% unregulated activities (mainly energy 7° National player i
Slide 21: Networks: service quality and investments drive growth
Networks: service quality and investments drive growth WATER ELECTRICITY GAS CAPEX ⦿ Network upgrading ⦿ Network upgrading ⦿ Maintenance of ⦿ Increased 13% distribution network investments in ⦿ 4 new purification plants ⦿ 5 new primary substations distribution Network replacement 2.8B€ ⦿ networks 58
Slide 22: Waste: collection development and energy recovery
Waste: collection development and energy recovery TREATMENT AND COLLECTION CAPEX DISPOSAL ⦿ Territorial expansion through ⦿ Waste treatment facilities ⦿ EGEA consolidation in tenders and consolidations, not development (6 new plants) collection activity 36% only in historical territories 1.6B€ ⦿ Ene
Slide 23: Energy: decarbonization of energy generation
Energy: decarbonization of energy generation CCGT, THERMO ENERGY RES AND HEAT EFFICIENCY CAPEX ⦿ Development of ⦿ Air cooler installation on ⦿ Rebuilding activity on ⦿ EGEA consolidation in greenfield renewable CCGT private and public district heating and public 19% capacity sector lighting Turbigo
Slide 24: Market: long term valorisation of customers
Market: long term valorisation of customers CLIENTS SERVICES CAPEX ⦿ Increasing EE clients due to ⦿ Boost cross-selling of Iren Plus ⦿ EGEA customer base electrification of consumptions products and services for increased consolidation household loyalty 0.7B€ ⦿ Medium and long term PPA with ⦿ Consol
Slide 25: Business plan's energy scenario
Business plan’s energy scenario 2023 2027 2030 PUN (€/MWh) 127.4 98.6 94.6 PSV (€/MWh) 42.3 28.3 25.5 ETS (€/Ton) 83.5 102 116 Clean spark spread Iren 5.0 3.0 2.0 (€/MWh) INVESTORS’ PRESENTATION STRATEGY Q1 2025 RESULTS DEBT PROFILE ANNEXES 25
Slide 26: Regulatory framework updated
Regulatory framework updated WASTE INTEGRATED SERVICE GAS ELECTRICITY WATER AND REGULATED PLANTS Regulatory period 6 years (2020 – 2025) 4 years (2024 – 2027) 6 years (2024 – 2029) 4 years (2022 – 2025) WACC methodology 6 years (2022 – 2027) 6 years (2022 – 2027) 6 years (2024 – 2029) 6 years (2022
Slide 27: Networks concessions
Networks concessions GAS WATER ELECTRICITY CONCESSIONS CONCESSIONS CONCESSIONS ATEM EXPIRY AREA EXPIRY AREA EXPIRY Piacenza 2040 Genova 1 Expired Torino 2030 Reggio Emilia 2043 Parma Expired Parma 2030 Genova 2032 Reggio Emilia Expired Vercelli 2030 Parma1 2027 Vercelli Expired Vercelli 2023 (exsten
Slide 28: Concessions
Concessions HYDROELECTRIC COLLECTION CONCESSIONS WASTE CONCESSIONS HYDROELECTRIC AREA EXPIRY AREA POWER (MW) EXPIRY PLANT Parma 2037 Piemonte 1 Pont Ventoux-Susa 157 2034 Piacenza 2037 Expired 2010 Piemonte 2 Valle Orco e S. Mauro 300 PPP proposal Expired Reggio Emilia (extension ex lege) S. Lorenzo
Slide 29: Disclaimer
Disclaimer The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of IREN S.p.A., Mr. Giovanni Gazza, hereby declares, pursuant to paragraph 2 of article 154 bis of the Consolidated Finance Act (Legislative Decree No 58/1998), that the accounting infor