Iren S.p.a. · MIL:IRE

Iren — H1 2020 Earnings Presentation

15 slides from Iren's earnings presentation, Aug 4, 2020

  1. Slide 1: Iren Results 1H 2020

    IREN RESULTS 1H 2020 4th August 2020

  2. Slide 2: 1H 2020 Signs of resilience in a downturn scenario

    1H 2020 Signs of resilience in a downturn scenario KPIs EBITDA BRIDGE (m€) m€ 1H '19 1H '20 Δ Δ% -1% 7 Revenues 2,238 1,826 -412 -18.4% 478 31 473 (4) Ebitda 478 473 -5 -1.0% (39) Ebit 258 232 -26 -10.0% Group net profit 151 133 -18 -11.9% Tech. Capex 197 254 57 29.0% Ebitda 1H Networks Waste Energy

  3. Slide 3: Networks: RAB rise and synergies as main growth drivers

    NETWORKS RAB rise and synergies as main growth drivers +RAB growth combined with +3.5% EBITDA BRIDGE (m€) synergies led the 4% Ebitda increase 1 0 179 6 172 +Investments in line with last year, despite the light slowdown caused by the lockdown - Negative impact from regulation Ebitda 1H '19 Water El

  4. Slide 4: Waste: Negative impact caused by PUN and volumes

    WASTE Negative impact caused by PUN and volumes +Higher margins on collection -3.8% EBITDA BRIDGE (m€) activities 7 +Positive contribution of San 84 80 Germano for 2 million euros (11) +Saturation of WTE plants, through the reorganization of flows Ebitda 1H '19 Collection Treatment & disposal Ebitda

  5. Slide 5: Energy: Generation resilience and lower heat margins

    ENERGY Generation resilience and lower heat margins +Higher hydro volumes -23.5% EBITDA BRIDGE (m€) -13.1% +Positive results in the ancillary 166 services market (50m€ vs 28m€ 137 11 8 127 in 2019) (29) 119 (7) (19) (3) - Lower coge and thermo volumes - Lower heat distributed due to Ebitda 1H '19 20

  6. Slide 6: Market: Margins normalization and increase of clients

    MARKET Margins normalization and increase of clients +Positive repricing commercial +57.0% EBITDA BRIDGE (m€) policy and hedging activities in 9 86 both sectors which led to 22 recover and overhit the standard 55 value of supply unit margins +Customer base at 1.863m clients (+47k vs FY2019 of which

  7. Slide 7: Profit and loss

    1H 2020 Profit and loss FROM EBITDA TO GROUP NET PROFIT (m€) 1H '19 1H '20 Δ Δ% EBITDA 478.1 473.3 -4.8 -1.0%  Release of Hydroelectric provision funds for D&A and others -203.6 -198.8 16 m€ Provisions to bad debt -16.8 -42.5  Higher provisions to bad debt related to EBIT 257.7 232.0 -25.7 -10.0%

  8. Slide 8: Cash-flow and NFP

    1H 2020 Cash-flow and NFP NET FINANCIAL POSITION BRIDGE (m€) +213 m€ 145 9 2.919 254 24 2.706 118 (146) (192) NFP 31.12.19 Net Profit D&A, provisions NWC Variation Capex Consolidation Dividends Derivatives NFP 31.3.20 and other and SBB  The increase in net financial position, equal to 7.9%, led by

  9. Slide 9: Financials

    1H 2020 Financials INTEREST RATE* DEBT STRUCTURE MATURITIES 4% 561 15% 19% 420 229 190 81% 81% 58 Fixed Swap Variable Bonds Loans 2020 2021 2022 2023 2024 *Last bond issue not included  96% of gross debt at fixed interest rate and 4% of  62% of the Iren total debt is composed by green and gross de

  10. Slide 10: Unieco's Waste Management Division at a glance

    1H 2020 Unieco’s Waste Management Division at a glance STRATEGIC DRIVERS  Primary operator at national level in the treatment and valorization or disposal of INDUSTRIAL DATA special waste Consolidated companies  Widening of areas served by our activities  15 treatment and disposal plants  Consol

  11. Slide 11: Closing remarks

    1H 2020 Closing remarks MAIN 1H 2020 TAKEAWAYS COVID IMPACTS ON FY 2020  High resilience of the energy integrated value chain The visibility achieved after the 1H leads to update the Covid  Negative Covid impact on Ebitda: 10m€ impacts on FY 2020:  M&A activism confirmed  Ebitda impact for 15m€

  12. Slide 12: Annexes

    Annexes

  13. Slide 13: Business units' results

    1H 2020 Business units’ results NETWORKS WASTE m€ 1H '19 1H '20 Δ Δ% m€ 1H '19 1H '20 Δ Δ% Revenues 482 490 8 2% Revenues 353 350 -3 -1% Ebitda 172 179 7 4% Ebitda 84 80 -4 -4% Electricity 36 37 1 3% Collection 25 32 7 31% Gas 41 41 0 0% Water 95 101 6 7% Treatment & disposal 59 48 -11 -19% Ebit 90

  14. Slide 14: Scenario

    1H 2020 Scenario 1H '19 1H ’20 Δ% Gas Demand (bcm) 40.1 35.8 -10.8% TTF €/000 scm 166 80 -52.1% PSV €/000 scm 198 97 -51.1% Energy Demand (Twh) 157.3 143.5 -8.8% PUN (€/Mwh) 55.1 32.2 -41.5% CO2 €/Ton 23.8 22.0 -7.7% Green Cert. Hydro (€/Mwh) 92.1 99.1 +7.5% TEE (€/TEE) 260.0 265.0 +1.9% 14 CASHFLOW

  15. Slide 15: Balance sheet

    1H 2020 Balance sheet FY ’19* 1H ’20 Net fixed assets 6,101 6,133 Net Working Capital 166 284 Funds -625 -577 Other assets and liabilities -284 -287 Net invested capital 5,358 5,553 Group Shareholders' equity 2,652 2,634 Net Financial Position 2,706 2,919 Total Funds 5,358 5,553 * Restated 15 CASHFL

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