Iren S.p.a. · MIL:IRE
Iren — 9M 2023 Earnings Presentation
17 slides from Iren's earnings presentation, Nov 9, 2023
Slide 1: 9M 2023 Results
9M 2023 RESULTS November 9th, 2023
Slide 2: Key Highlights
2 KEY HIGHLIGHTS 2 9M 2023 RESULTS HIGHLIGHTS ESG KEY FINANCIALS NETWORKS WASTE EBITDA growth (+13% yoy) External growth led by the full Organic growth in Technical Capex at ENERGY driven mainly by the recovery integration of our Collection regulated businesses 550€M MARKET of the Market BU’s profit
Slide 3: Sustainable Growth Continued Throughout the Quarter
3 SUSTAINABLE GROWTH CONTINUED THROUGHOUT THE QUARTER 3 9M 2023 RESULTS Green transition Local presence Service quality HIGHLIGHTS ESG Material recovery in Iren’s plants On track Sorted waste collection Ahead Stores’ Customer Satisfaction Index On track KEY FINANCIALS 699 Kton 538 # 9.8 69% 71% 9.7
Slide 4: Energy Supply Recovery Driven EBITDA Growth
ENERGY SUPPLY RECOVERY DRIVEN EBITDA GROWTH 4 9M 2023 EBITDA EVOLUTION RESULTS €M +12.9% HIGHLIGHTS 9M '22 9M '23 Δ Δ% 14.9% ESG Revenues 5.644 4.626 -1.018 -18,0% (€M) 113 850 7 857 EBITDA 759 857 98 12,9% 759 KEY FINANCIALS 740 1 6 -19 -10 EBIT 321 325 4 1,0% NETWORKS EBIT Adj.** 321 366 45 14,0%
Slide 5: Networks: Tariffs increase offset by severe inflation impact on opex
NETWORKS NETWORKS NETWORKS Tariffs increase offset by severe inflation impact on opex 5 9M 2023 RESULTS EBITDA EVOLUTION GROSS CAPEX €M -4% HIGHLIGHTS 222 +1 225 31 ESG 32 - -3% 292 42 +31% 55 279 2 0 280 KEY FINANCIALS -13 -1 NETWORKS 148 -6% 139 (€M) WASTE 9M '22 9M '23 ENERGY Water Electricity Ga
Slide 6: Waste: Lower prices scenario partially counterbalanced by external growth
WASTE NETWORKS Lower prices scenario partially counterbalanced by external growth 6 9M 2023 RESULTS EBITDA EVOLUTION CAPEX €M -5% HIGHLIGHTS 13 137 197 187 118 +16% ESG -7 -16 77 -10% KEY FINANCIALS 86 NETWORKS +84% 59 32 (€M) WASTE 9M '22 9M '23 Collection Treatment & Disposal ENERGY 9M ’22 Collect
Slide 7: Energy: Hydro margins offset by the MSD downside trend
ENERGY NETWORKS Hydro margins offset by the MSD downside trend 7 9M 2023 RESULTS HEAT DISTRIBUTED EBITDA EVOLUTION €M HIGHLIGHTS +3% 1,970 ESG +2% -17% 1,634 35 263 257 8 263 7 270 KEY FINANCIALS -6 -27 -10 NETWORKS (GWht) WASTE 9M '22 9M '23 ENERGY 9M ’22 One Ord. RES Heat CCGT & Energy Ord. One 9M
Slide 8: Market: Confirmation of the recovery of electricity portfolio value
MARKET NETWORKS Confirmation of the recovery of electricity’ portfolio value 8 9M 2023 RESULTS ELECTRICITY SOLD EBITDA EVOLUTION €M HIGHLIGHTS 6,541 -24% 5 ESG 119 120 4,954 2.300* -30% -11 1.600 KEY FINANCIALS 1.677 -39% 1.022 NETWORKS 2.564 -9% 2.332 (GWh) WASTE 9M '22 9M '23 7 Retail & SMEs Busin
Slide 9: EBITDA to Group Net Profit Reconciliation
EBITDA TO GROUP NET PROFIT RECONCILIATION 9 9M 2023 RESULTS €M HIGHLIGHTS 9M '22 9M '23 Δ Δ% EBITDA 759 857 98 12,9% ▪ Depreciation increase linked to new ESG companies’ integrations and industrial D&A -393 -435 investments made in the period KEY FINANCIALS Provisions to bad debt -52 -51 ▪ Provision
Slide 10: Net Financial Position Evolution (9M 2023 vs FY2022)
NET FINANCIAL POSITION EVOLUTION (9M 2023 VS FY2022) 10 9M 2023 RESULTS €M +583€M (+17%) HIGHLIGHTS 183 3.930 ESG 548 50 -31 3.347 421 KEY FINANCIALS 178 91 NETWORKS -857 WASTE ENERGY MARKET FY ’22 Ebitda Other Superbonus Changes Net Tech. M&A Dividends MtM 9M ’23 operational 110% & tax in WC Capex
Slide 11: Closing Remarks
CLOSING REMARKS 11 9M 2023 RESULTS HIGHLIGHTS ESG KEY FINANCIALS ▪ EBITDA +10% vs FY2022 NETWORKS Guidance 2023 ▪ Gross Investments at 1.3€B WASTE CONFIRMED ▪ NFP/EBITDA: 3,3x ENERGY MARKET EBITDA - NET PROFIT NFP CLOSING REMARKS ANNEXES
Slide 12: Annexes
ANNEXES
Slide 13: 9M 2023 Business Units' Results
9M 2023 BUSINESS UNITS’ RESULTS 13 9M 2023 NETWORKS WASTE RESULTS €M 9M '22 9M '23 Δ Δ% HIGHLIGHTS €M 9M '22 9M '23 Δ Δ% Revenues 832 827 -5 -1% Revenues 784 879 95 12% ESG Ebitda 292 280 -12 -4% Ebitda 197 187 -10 -5% Electricity 57 59 2 4% KEY FINANCIALS Collection 42 55 13 31% Gas 60 60 0 0% Wate
Slide 14: A Sound and Sustainable Debt Structure
A SOUND AND SUSTAINABLE DEBT STRUCTURE 14 9M 2023 RESULTS INTEREST RATE DEBT STRUCTURE HIGHLIGHTS ESG 6% 1% 23% KEY FINANCIALS 25% NETWORKS 47% WASTE 69% 29% ENERGY MARKET Fixed Fixed-rate swap Variable Green Bond EIB-CEB ESG Loans Bonds Loans EBITDA - NET PROFIT NFP CLOSING REMARKS 94% 4.7 years 1.
Slide 15: Industrial KPIs
INDUSTRIAL KPIS 15 9M 2023 RESULTS HIGHLIGHTS 9M ’22 9M ‘23 Δ% ESG Electricity distributed (GWh) 2.787 2.662 -6% KEY FINANCIALS Gas distributed (mcm) 785 703 -10% NETWORKS Water distributed (mcm) 126 129 +2% WASTE Waste collected (Kton) 1.341 1.602 +20% ENERGY Waste treated (Kton) 1.944 2.051 +6% MA
Slide 16: Scenario
SCENARIO 16 9M 2023 RESULTS HIGHLIGHTS ESG 9M ’22 9M ‘23 Δ% KEY FINANCIALS NETWORKS PSV €/000 scm 138 45 -67% WASTE PUN (€/MWh) 323 129 -60% ENERGY CO2 €/Ton 82 86 +5% MARKET Green Cert. Hydro (€/MWh) 42,9 0 n.s. EBITDA - NET PROFIT Clean spark spread (€/MWh) 28 0.6 n.s. NFP CLOSING REMARKS ANNEXES
Slide 17: Disclaimer
DISCLAIMER 17 9M 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 58/1