Iren Limited · NASDAQ:IREN

Iren — Iris Energy — Q3 FY2024 Earnings Presentation

27 slides from Iren's earnings presentation, May 15, 2024

  1. Slide 1: Third Quarter FY 2024 Investor Update

    Third Quarter FY 2024 Investor Update MAY 15, 2024 | NASDAQ: IREN

  2. Slide 2: Disclaimer: Forward-Looking Statements

    Disclaimer Forward-Looking Statements This investor update includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or IREN’s future financial or operating performance. For example,

  3. Slide 3: Strategic priorities for 2024

    Strategic priorities for 2024 3 510MW next-generation data centers >3,000MW power & land portfolio 30 EH/s Bitcoin mining Scale AI Cloud Services Accelerate organic growth Explore structures to unlock value

  4. Slide 4: Bitcoin Mining

    Bitcoin Mining 01

  5. Slide 5: 30 EH/s plan in 2024

    30 EH/s plan in 2024 5 16 J/TH S21 Leading efficiency Latest-gen fleet secured 30 Large-scale miner EH/s Strategic investments in land, power and infrastructure enable rapid growth ahead $17k Low-cost producer Pro per BTC Note: Metrics tabled above are on a post-30 EH/s expansion basis. Refer to ass

  6. Slide 6: Pathway to industry leadership

    Pathway to industry leadership Latest-generation Bitmain miners secured, single site expansion at Childress 6

  7. Slide 7: Capex & funding

    Capex & funding 7 Market is valuing 1 EH/s at ~$135m (large-scale miners) IREN is delivering 1 EH/s at ~$30m (through organic growth) 10 EH/s to 20 EH/s (3Q 2024) 20 EH/s to 30 EH/s (4Q 2024) Total Capex Fully-funded $322m cash (as of 30 April, 2024) ~$190m hardware ~$110m data centers (150MW) Fundi

  8. Slide 8: Bitmain contract summary

    Bitmain contract summary 8 Hardware agreements for latest-generation miners Bitmain Agreement Hashrate Nameplate Efficiency Price Option expiry Comment Existing Agreements 5 EH/s 19 J/TH - - Existing Option Agreement now amended to 48,000 T21 (9 EH/s) or 48,000 S21 Pro (11 EH/s) 19 J/TH or 15 J/TH $

  9. Slide 9: Peer landscape

    Peer landscape 9 $254 $715 $254 $636 $616 $674 $1,153 $711 $2,657 $3,548 $647 $4,684 2.8 5.5 5.0 6.7 7.0 8.0 7.7 10.0 12.6 17.3 20.4 29.9 Large-scale miner with leading efficiency Market Cap ($m) Installed hashrate (EH/s) Bitcoin mined (April 2024) Note: Refer to assumptions and notes on page 23.

  10. Slide 10: AI Cloud Services

    AI Cloud Services 02

  11. Slide 11: AI is not a 'pivot' away from Bitcoin

    AI is not a ‘pivot’ away from Bitcoin 11 Highly complementary businesses utilizing the same multi-purpose data centers Diversifies revenue base Smooths returns through the cycle Optimizes cost of capital Does not displace Bitcoin mining capacity Every $100m of GPU capex: Uses <1% of IREN’s 510MW dat

  12. Slide 12: Scaling AI Cloud Services

    Scaling AI Cloud Services Exceptional customer feedback “We are seriously impressed by the performance of the host<>device DMA transfers…the number is 3x bigger than any other hardware setup we have worked with” 12 IREN’s NVIDIA H100 GPU deployment at its Prince George data center In parallel with g

  13. Slide 13: >3,000MW power & land portfolio

    >3,000MW power & land portfolio 03

  14. Slide 14: AI's impending power crunch

    AI’s impending power crunch >3,000MW power & land portfolio presents significant opportunity 14 Source: Morgan Stanley Research (April 2024). $5-$12/Watt range relates to the “time to power” benefit of converting a mining facility to a data center (vs. building a data center without grid access and

  15. Slide 15: Financial summary

    BAY Financial summary

  16. Slide 16: Illustrative comparative economics

    Illustrative comparative economics Bitcoin Mining AI Cloud Services Business Bitcoin network security (Bitcoin rewards sold daily) GPU compute for AI customers Hardware Application-Specific Integrated Circuit (ASIC) Graphics Processing Unit (GPU) Monetization1, 2 Per Bitcoin mined Revenue: Spot pric

  17. Slide 17: AI Cloud Services revenue

    AI Cloud Services revenue 17 Continuing to scale

  18. Slide 18: Strong cashflow generation

    Strong cashflow generation 18 Reflects cash generation from our data centers and quality of underlying operations $47.9m positive operating cashflow Reinvested into growth $8.6m positive NPAT No reliance on Bitcoin revaluation Consolidated statement of cashflows Consolidated statement of profit or l

  19. Slide 19: Adjusted EBITDA 3Q FY24 vs. 2Q FY24

    Adjusted EBITDA 19 3Q FY24 vs. 2Q FY24 US$m1 Three months ended March 31, 2024 Three months ended December 31, 2023 Bitcoin mining revenue 53.4 42.0 AI Cloud Service revenue 0.6 - Other income 0.4 0.5 Electricity charges (19.8) (16.7) Realized gain/(loss) on financial asset 0.1 0.1 Other costs (12.9

  20. Slide 20: Adjusted EBITDA 3Q YTD FY24 vs. 3Q YTD FY23

    Adjusted EBITDA 20 3Q YTD FY24 vs. 3Q YTD FY23 US$m Nine months ended March 31, 2024 Nine months ended March 31, 2023 Bitcoin mining revenue 129.8 41.3 AI Cloud Service revenue 0.6 - Other income 0.9 3.1 Electricity charges (55.9) (19.9) Realized gain/(loss) on financial asset 3.2 - Other costs (36.

  21. Slide 21: Consolidated statement of cashflows

    Consolidated statement of cashflows 21 Net increase in cash and cash equivalents of $190.7m for the nine months ended March 31, 2024 Increase in net cash from operating activities to $47.9m due to increase in average operating hashrate (2.0 EH/s to 5.8 EH/s) coupled with a higher average realized bi

  22. Slide 22: Balance sheet

    Balance sheet 22 March 31, 2024 US$m March 31, 2024 June 30, 2023 Assets Cash and cash equivalents 259.7 68.9 Other receivables 35.9 6.5 Financial assets at fair value through profit or loss 3.4 - Prepayments and other assets 11.2 13.8 Total current assets 310.2 89.2 Property, plant and equipment 35

  23. Slide 23: Assumptions and notes

    Assumptions and notes 23 Page 5 Overall nameplate fleet efficiency of 16 J/TH at 30 EH/s. Represents indicative electricity cost per bitcoin mined assuming 30 EH/s, nameplate fleet efficiency of 16 J/TH, weighted average power cost of $0.037/kWh ($0.045/kWh in BC and $0.033/kWh in Texas – latter cal

  24. Slide 24: Additional information

    Additional information 05

  25. Slide 25: Consolidated statement of profit or loss

    Consolidated statement of profit or loss 25 3Q FY24 vs. 2Q FY24 US$m Three months ended March 31, 2024 Three months ended December 31, 2023 Revenue Bitcoin mining revenue 53.4 42.0 AI Cloud Service revenue 0.6 - Other income 0.4 0.5 Total Revenue 54.3 42.6 Expenses Depreciation (8.7) (7.6) Electrici

  26. Slide 26: Net electricity costs

    Net electricity costs 26 Reconciliation of Electricity charges to Net electricity costs US$m Three months ended March 31, 2024 Three months ended December 31, 2023 Nine months ended March 31, 2024 Nine months ended March 31, 2023 Electricity charges (19.8) (16.7) (55.9) (19.9) Add/(deduct) the follo

  27. Slide 27: Thank you

    www.iren.com Thank you 27

Iris Energy — Q3 FY2024 Earnings Presentation on 6ix