Iren S.p.a. · MIL:IRE
Iren — H1 2023 Earnings Presentation
17 slides from Iren's earnings presentation, Jul 27, 2023
Slide 1: H1 2023 Results
H1 2023 RESULTS July 27th, 2023
Slide 2: H1 2023 Results Highlights
2 2 H1 2023 RESULTS HIGHLIGHTS ESG + ++ KEY FINANCIALS +++ ++ + NETWORKS WASTE Strong EBITDA performance Organic growth in Full contribution from NWC evolution in line Continuous ENERGY (+8% yoy), driven mainly by regulated businesses the effective integration with guidance; impact commitment on MAR
Slide 3: Green transition, Local presence, Service quality
3 3 H1 2023 RESULTS Green transition Local presence Service quality HIGHLIGHTS ESG Material recovery in Iren’s plants On track Sorted waste collection On track Stores’ Customer Satisfaction Index On track KEY FINANCIALS 474 Kton # 350 9.8 70% 71% 9.7 NETWORKS H1 '22 H1 '23 H1 ‘22 H1 ‘23 H1 '22 H1 '2
Slide 4: Key Financials
4 H1 2023 RESULTS €M +7.8% HIGHLIGHTS H1 '22 H 1 ' 23 Δ Δ% Revenues 3,712 3,214 -497 -13.4% 11.8% ESG (€M) 68 606 EBITDA 563 606 44 7.8% 563 542 2 6 KEY FINANCIALS EBIT 282 248 -33 -11.8% -21 -12 NETWORKS EBIT Adj.** 282 282 - 0.2% WASTE Group net profit 137 143 6 4.2% ENERGY Technical capex*** 338
Slide 5: Networks
NETWORKS NETWORKS 5 H1 2023 RESULTS €M -5% HIGHLIGHTS 146 +1% +12% ESG 130 20 198 187 1 1 0 189 18 +11% +38% 36 KEY FINANCIALS -11 26 NETWORKS 86 90 +5% (€M) WASTE H1 '22 H1 '23 ENERGY Water Electricity Gas H1 ‘22 One off ‘22 Ordinary Electricity Gas Water H1 ‘23 EBITDA MARKET EBITDA - +7% NET PROFI
Slide 6: Waste
NETWORKS 6 H1 2023 RESULTS €M HIGHLIGHTS 91 +5% +35% ESG 13 132 67 126 KEY FINANCIALS -7 +38% 73 53 NETWORKS 14 +29% 18 (€M) WASTE H1 '22 H1 '23 Collection Treatment & Disposal ENERGY H1 ‘22 Collection Treatment H1 ‘23 & Disposal MARKET Strong Collection business performance mainly driven by effec
Slide 7: Energy
NETWORKS 7 H1 2023 RESULTS €M HIGHLIGHTS -8% -18% 1,840 ESG -5% 1,502 35 207 201 KEY FINANCIALS 11 190 -6 -49 -8 NETWORKS (GWht) WASTE H1 '22 H1 '23 ENERGY H1 ‘22 One off ‘22 Ordinary RES Heat CCGT & Energy H1 ‘23 EBITDA thermo efficiency MARKET RES benefited from higher Hydro volumes (+28% yoy) i
Slide 8: Market
NETWORKS 8 H1 2023 RESULTS €M 4,645 -38% HIGHLIGHTS 8 ESG 64 93 1.885* -65% 2,857 -5 655 KEY FINANCIALS 1.137 -41% 674 NETWORKS 1.623 -6% 1.528 (GWh) 30 26 WASTE -4 H1 '22 H1 '23 Retail & SMEs Business Wholesale *H1 2022 includes volumes related to opportunistic ENERGY transactions on wholsale marke
Slide 9: From EBITDA to Net Profit
9 H1 2023 RESULTS €M HIGHLIGHTS H1 '22 H1 '23 Δ Δ% EBITDA 563 606 42 7.8% Depreciation increase linked to new ESG companies’ integrations and industrial D&A -253 -287 investments made in the period KEY FINANCIALS Provisions to bad debt -36 -36 Provisions affected by Italian Government Other prov
Slide 10: Net Financial Position
10 H1 2023 RESULTS €M +573€M (+17%) HIGHLIGHTS 183 3.920 356 46 ESG 3.347 294 -23 168 155 KEY FINANCIALS -606 NETWORKS WASTE ENERGY MARKET FY ‘22 Ebitda Other Super bonus Changes in WC Net Capex M&A Dividends MtM H1 ‘23 operational 110% & tax Derivatives EBITDA - changes credits NET PROFIT (temporar
Slide 11: Closing Remarks: NFP/EBITDA and Investments
11 H1 2023 RESULTS NFP/EBITDA HIGHLIGHTS EBITDA TOTAL ~3.3x ESG +10% INVESTMENTS vs. FY 2022 ~1.3€B* KEY FINANCIALS NETWORKS + Positive WASTE Effective management of our Continuous robust Proven financial discipline ENERGY hedging strategy combined with a investments’ growth underpinning stron
Slide 12: Annexes
ANNEXES
Slide 13: Results by Business Unit
13 H1 2023 NETWORKS WASTE RESULTS €M H1 '22 H1 '23 Δ Δ% HIGHLIGHTS €M H1 '22 H1 ' 23 Δ Δ% Revenues 528 545 17 3% Revenues 486 595 109 22% ESG Ebitda 198 189 -9 -5% Ebitda 126 132 6 5% Electricity 37 41 4 10% KEY FINANCIALS Collection 25 38 13 52% Gas 41 41 0 0% Water 120 107 -13 -11% Treatment & dis
Slide 14: Debt Structure
14 H1 2023 RESULTS HIGHLIGHTS ESG 5% 3% KEY FINANCIALS 23% 25% NETWORKS 47% WASTE 70% 27% ENERGY MARKET Fixed Fixed-rate swap Variable Green Bond EIB-CEB ESG Loans Bonds Loans EBITDA - NET PROFIT NFP CLOSING REMARKS ANNEXES Fixed rate debt Average duration Average cost Sustainable debt
Slide 15: Operating Data
15 H1 2023 RESULTS HIGHLIGHTS H1 ’22 H1 ‘23 Δ% ESG Electricity distributed (GWh) 1,821 1,756 -4% KEY FINANCIALS Gas distributed (mcm) 714 601 -16% NETWORKS Water distributed (mcm) 84 87 +4% WASTE Waste collected (Kton) 821 1,053 +28% ENERGY Waste treated (Kton) 1,308 1,383 +6% MARKET WTE’s electrici
Slide 16: Market Scenario
16 H1 2023 RESULTS HIGHLIGHTS ESG H1 ’22 H1 ‘23 Δ% KEY FINANCIALS NETWORKS PSV €/000 scm 103 50 -51% WASTE PUN (€/MWh) 249 136 -45% ENERGY CO2 €/Ton 83 87 +5% MARKET Green Cert. Hydro (€/MWh) 42,9 0 n.s. EBITDA - NET PROFIT Clean spark spread (€/MWh) 19.4 -1.6 n.s. NFP CLOSING REMARKS ANNEXES
Slide 17: Disclaimer
17 H1 2023 The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of RESULTS IREN S.p.A., Ms. Anna Tanganelli, hereby declares, pursuant to paragraph 2 of article 154 bis of the Consolidated HIGHLIGHTS Finance Act (Legislative Decree No 58/1998), that