Iren S.p.a. · MIL:IRE
Iren — FY2021 Earnings Presentation
27 slides from Iren's earnings presentation, Mar 29, 2022
Slide 1: Full-Year 2021 Results
FULL-YEAR 2021 RESULTS 29th March 2022
Slide 2: 2021 Highlights
2021 Highlights NEW PLANTS / OPENINGS ACQUISITIONS Plastic treatment plant in San Giorgio (UD) entered into operation, Futura S.p.A mechanical biological treatment plant with a capacity of 40 kt/y; already authorized expansion underway to reach a total capacity of 70 kt/y Nove S.p.A. distr
Slide 3: Improvement of all ESG KPIs
Improvement of all ESG KPIs Green transition Local presence Service quality Carbon DH volumes Customer Intensity gCO2/kWh 332 mcm 99 Satisfaction # 323 9.1 96.7 Index 8.7 2020 2021 2020 2021 2020 2021 Biomethane Sorted waste Water 1.8 from waste mcm collection leakages 69.3% 70.3% 33.3% 32.6% 0 2020
Slide 4: Robust growth despite unexpected challenges
Robust growth despite unexpected challenges (m€) EBITDA BRIDGE FY '20 FY '21 Δ Δ% +9.6% Revenues 3,726 4,956 1,230 33.0% +10.0% Ebitda 927 1,016 89 9.6% 81 1 .016 1 998 18 Ebit 415 454 39 9.3% 54 927 6 907 (51) Group net profit 239 303 64 26.7% (20) Gross investments 913 955 42 4.6% NFP 2,948 2,906
Slide 5: Solid results underpinned by RAB expansion
NETWORKS NETWORKS Solid results underpinned by RAB expansion +2% GROSS CAPEX +2% +5% 294 308 376 373 4 2 - 379 4 383 +10% 61 55 (3) 53 -20% 43 185 204 +10% (m€) FY '20 FY '21 FY '20 One-off '20 Water Electricity Gas One-off '21 FY '21 Water Gas Electricity RAB +5% Allowed revenues growth (+17m€) s
Slide 6: Favourable energy contribution, organic growth and consolidations drive profitability
WASTE NETWORKS Favourable energy contribution, organic growth and consolidations drive profitability +31% WASTE MANAGED +18% 52 227 3,646 3,081 173 2 908 817 +11% 2.738 2.264 +21% (kTon) FY '20 FY '21 FY '20 Collection Treatment FY '21 Urban waste Other waste & Disposal WTEs ENERGY SOLD +13% +22m€
Slide 7: Profitability recovery driven by positive market evolution and organic development
ENERGY NETWORKS Profitability recovery driven by positive market evolution combined with strong organic development +31% HEAT DISTRIBUTED +13% +38% 14 296 2 298 3,340 39 228 31 2,958 215 (3) (13) (GWht) FY '20 FY '21 FY '20 One off'20 Hydro & Coge EE & Heat Energ. Eff. One off '21 FY '21 Ren Thermo
Slide 8: Integrated energy value chain enabling to counter adverse market scenario
MARKET NETWORKS Integrated energy value chain enabling to counter adverse market scenario -29% RETAIL & SMEs CLIENTS -39% +7% 147 143 1,877 2,003 (4) 6 12 104 906 954 92 +5% (48) (9) 1,049 971 +8% (n. 000) FY '20 FY '21 FY '20 One off '20 Electricity Gas Iren Plus One off '21 FY '21 Electricity Gas
Slide 9: Ebitda to Group Net Profit reconciliation
Ebitda to Group Net Profit reconciliation (m€) FY '20 FY '21 Δ Δ% Higher depreciations linked to increased investments, EBITDA 926.9 1,015.8 88.9 9.6% combined with I.Blu and Unieco full-year consolidations Depreciations -440.8 -477.9 Reduction of COVID-19 impact on bad debt provisions Provision
Slide 10: Net Financial Position Evolution (2021 vs 2020)
Net Financial Position Evolution (2021 vs 2020) (m€) -42m€ 149 9 2,948* 2,906 85 112** (133) (334) 758 (424) (152) 955m€ Gross investments FY '20 Net Profit D&A, Change in NWC Net Consolidation Dividends Equity Derivatives FY '21 provisions Capex changes and other *Restated for 2m€ PPA **Contributio
Slide 11: Closing remarks
Closing remarks Having closed 2021 ahead of our Plan, we are proposing to pull-ahead the dividend per share growth initially forecasted for the next year IREN reported solid 2021 results despite a very challenging market environment, thanks to the resilience of its business model & DPS IMPROVED +10.
Slide 12: 2022 Outlook
2022 Outlook In 2022, IREN – in line with the rest of the industry – is expected to face several headwinds such as a continuously volatile energy scenario, likely changes in the generation market framework, released / announced government measures, WACC reduction and an adverse climate environment (
Slide 13: Annexes
ANNEXES
Slide 14: Iren at a glance
FY 2021 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 Energ
Slide 15: Business units' results
FY 2021 Business units’ results NETWORKS WASTE m€ FY '20 FY '21 Δ Δ% m€ FY '20 FY '21 Δ Δ% Revenues 1,041 991 -50 -5% Revenues 765 916 151 20% Ebitda 376 383 7 2% Ebitda 173 227 54 32% Electricity 79 82 3 3% Collection 60 62 2 3% Gas 85 90 5 5% Water 212 211 -1 0% Treatment & disposal 113 165 52 46%
Slide 16: Financials FY 2021
FY 2021 Financials INTEREST RATE DEBT STRUCTURE MATURITIES 1% 1% 13% 561 561 564 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-te
Slide 17: Industrial KPIs
FY 2021 Industrial Kpis FY ’20 FY ‘21 Δ% Electricity distributed (GWh) 3,587 3,680 +3% Gas distributed (mcm) 1,250 1,347 +8% Water distributed (mcm) 175 175 - Waste collected (Kton) 1,631 1,675 +3% Waste treated (Kton) 2,253 2,926 +30% Thermal production (GWh) 8,160 7,947 -3% Renewable production (G
Slide 18: Scenario
FY 2021 Scenario FY ’20 FY ‘21 Δ% Gas Demand (bcm) 70.7 76.2 +7.8% PSV €/000 scm 11.0 48.5 >100% Energy Demand (Twh) 301.2 318.1 +5.6% PUN (€/Mwh) 38.9 125.5 >100% CO2 €/Ton 24.8 53.3 >100% Green Cert. Hydro (€/Mwh) 99.1 109.4 +10.4% TEE (€/TEE) 270.6 259.5 -4.1% 18 MAIN EBITDA - CLOSING 2022 ESG EB
Slide 19: Sustainable Financing Framework at a Glance
Sustainable Financing Framework at a Glance Iren New Sustainable Financing Framework Green Financing Component Sustainability-Linked Component • Additional eligible green categories • 4 KPIs covering all the IREN's business activities and in • Alignment with EU Taxonomy substantial contribution to l
Slide 20: 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 21: Sustainability-Linked Rationale and Strategy
Sustainability-Linked Rationale and Strategy KPI#1 KPI#2 KPI#3 KPI#4 Scope 1 GHG Emissions Scope 3 GHG Emissions Water Leaks (%) Waste treated in Material Intensity (gCO2eq/kWh) (kt of CO2eq) Recovery Plants (kt) • The target is coherent with the overall IREN’s • The target is coherent with the over
Slide 22: Decarbonization
Decarbonization 2020 2021 2024 2026 2030 332 323 317 298 Power generation carbon intensity (Scope 1) (gCO2eq/kWh) 176 Validated by SBTi 83.0% 90.0% 95.0% 100.0% Certified renewable electricity purchased (Scope 2) (%) 0.01% Use of sold products (gas) -25% 8% Scope 3 emissions -13% Fuel and energy rel
Slide 23: Circular economy
Circular economy 2020 2021 2024 2026 2030 74.6% 76.2% 73.4% Legacy 69.3% 70.3% regions Sorted waste collection (%) 75.3% 72.9% New 68.4% 63.1% 64.5% regions 2,310 1,490 1,670 Waste recovered in Iren Group plants (kton) 492 596 46 57 38 Biomethane produced from biodegradable 0 2 waste (Mcm) 20 16 13
Slide 24: Water resources
Water resources 2020 2021 2024 2026 2030 3,970 3,850 3,690 Wastewater plants capacity 3,527 3,525 (kP.E.) 281 280 278 273 Water withdrawals from the environment 261 (liters/inhabitant/day) 33.3% 32.6% 30.1% 26.5% Water network leaks (%) 20.0% 90.0% 82.0% Network division into small and 75.0% equal a
Slide 25: Resilient cities
Resilient cities 2020 2021 2024 2026 2030 124 117 108 District heated volumes (Mcm) 99 97 100% Eco-vehicles on total fleet 47% 36% (%) 19% 18% 3,500 2,500 Green electricity sold to retail clients 2,000 1,035 (GWh) 326 700 500 Energy saving from Iren Group 420 products/services (kTep) 206 71 25 MAIN
Slide 26: People
People 2020 2021 2024 2026 2030 +4,000 Employment, development +2,300 +2,900 and enhancement of skills 612 +886 New hires1 (N.) 27 30 26 25 23 Training hours per capita (N.) 100% 100% 80% 54% 53% Employees evaluated on performance2 (%) 30.0% 26.5% Diversity & Inclusion 23.5% 22.8% 22.3% Women in man
Slide 27: 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