RENEWI PLC

Interim / Quarterly Report • Nov 9, 2023

Renewi plc (RWI)Renewi plc: Half-year report 09-Nov-2023 / 07:00 GMT/BST

9 November 2023

Renewi plc

Half Year Resultsfor the six months ended 30 September 2023

Renewi plc ("Renewi", the "Company" or, together with its subsidiaries, the "Group") (LSE: RWI), the leading European waste-to-product business, announces its results for the six months ended 30 September 2023 ("HY24" or the "period").

Financial Highlights – in line with guidance from 4 October 2023

• Revenue of €937m and underlying EBIT1 of €50.7m (HY23: €952m and €75.2m respectively), reflects re-based recyclate prices together with a subdued volume environment in certain commercial waste sectors and particularly construction & demolition ("C&D")
• Underlying EBITDA of €113.6m (HY23: €131.9m)
• Statutory profit after tax of €35.3m (HY23: €53.4m) and basic EPS of 42 cents (HY23: 66 cents)
• Net cash inflow from operating activities of €88.8m (HY23: €74.0m) due to improvements in working capital
• Core net debt* to EBITDA of 2.1x (March 2023: 1.8x) with core net debt increased to €383.2m (March 2023: €370.6m), in line with expectations

Strategic and Operational Highlights – strong actions in HY24

Margin focus:

• Renewi 2.0 is now successfully completed and the programme has supported productivity in HY24
• Additional actions to be implemented in H2 to reduce SG&A and other costs by €15m on an annual basis, with capability and capacity retained

Portfolio actions:

• As previously announced, strategic review of UK Municipal on track, targeted outcome in the first half of 2024
• Strong Q2 performance in Mineralz & Water ("M&W"), following ramp-up of sand and gravel production, with H2 expected to show sharply improved results, in line with the performance enhancement plan

Accelerated growth:

• Successfully commissioned a hard plastics sorting facility in Acht, Netherlands which is expected to achieve at least group hurdle returns over the course of 2024
• The Group had a number of customer wins including the Dutch Ministry of Defence, TotalEnergies and Custodial Institutions Agency
• Renewi's Specialities business Maltha, continued to achieve record-breaking performance due to operational enhancements and strategic investments. Coolrec maintained strong volumes in the period, though plastics prices were lower

Current trading and outlook – on track to achieve full year expectations

• Full year guidance unchanged from trading update of 4 October 2023
• Revenue stable as a result of targeted commercial initiatives and structural drivers, including Vlarema 8 legislation, expected to support resilient H2 demand across Commercial Waste Belgium, M&W and the Specialities businesses which will mitigate in part continued low levels of C&D activity in the Netherlands
• Significantly stronger EBIT performance in H2 underpinned by continued M&W earnings recovery, the initial contribution from SG&A cost actions, pricing and further productivity initiatives. Further benefits of our margin and portfolio initiatives, together with stabilised recyclate prices and tailwinds generated by Renewi 2.0, underpin confidence in good progress in FY25

Strategy in place to achieve sustainable improvements in margins and cash conversion in the medium term

Deliver >5% p.a. organic sales growth through growth initiatives, increased recycling conversion and targeted market share gains

• High single digit EBIT margins
• Free cash flow generation at least 40% of EBITDA
• ROCE of over 15%
• Disciplined capital allocation strategy focused on attractive and sustainable shareholder value whilst maintaining strong balance sheet as outlined at the Group's Capital Markets Event

Otto de Bont, Chief Executive Officer, said:

"Our first half performance was in line with our expectations and previous guidance from October. The period saw recyclate prices reverting to more normalised levels, following the unprecedented Covid peak. Volumes mostly stabilised, except in Construction and Demolition waste in the Netherlands. In response, we are taking strong action by reducing our SG&A cost base by €15m on an annual basis.

"Alongside reducing costs, we continue to benefit from previous strategic actions. For example, Mineralz & Water have ramped up production of sand and gravel in our soil cleaning business as of September and we expect to show sharply improved results in H2. We continued to invest in future organic growth; at Maltha the operational enhancements enabled the business to achieve a record-breaking performance in the period. Our Vlarema8 line in Ghent, Belgium started ramp-up in H1 and we also commissioned our hard plastics sorting facility in Acht, Netherlands. All of these actions will contribute to a stronger second half and our medium term strategic objectives. On the commercial front Renewi won a number of significant customers as a result of our strong value proposition, such as the Dutch Ministry of Defence, TotalEnergies and Custodial Institutions Agency.

"As announced in October, we are undertaking a strategic review of our UK Municipal business, with an outcome targeted for the first half of 2024.

"As we look forward, our SG&A cost actions and benefits from Renewi 2.0 and the Mineralz & Water recovery are expected to lead to higher profit and margin expansion in the second half of the year and we expect this to flow through to FY25. Renewi's resilience and adept handling of price and cost dynamics have ensured a stable financial position and we reconfirm our intention to resume dividend payments at the end of this financial year. As a company we are proud of the critical role Renewi is playing in closing the loop to a circular economy and we look forward to continuing to enable the decarbonisation of our world while delivering value to our shareholders."

The full text of the half year statement is set out below, together with detailed financial results and will be available on the Company's website at www.renewi.com.

Virtual presentation

Renewi will host a virtual presentation at 10:30-11:30am CET today. Please register to attend the webcast here: https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=C3E612CF-DACD-4EBF-9046-3E245751FAEA&LangLocaleID=1033.

Today's presentation will also be available on the website once the webcast has concluded https://www.renewi.com/en/investors.

l Re ts su
	H Y 2 4	H Y 2 3#	% ha c ng e
G O S A O U N D E R L Y I N N N- T T U T R Y
Re ve nu e	€ 9 3 7. 1m	€ 9 5 2. 0m	-2 %
de ly ing Un E B I T D A1 r	€ 1 1 3. 6m	€ 1 3 1. 9m	-1 4 %
de ly ing Un E B I T1 r	€ 5 0. 7m	€ 7 5. 2m	-3 3 %
Un de ly ing E B I T1. in r m arg	5. 4 %	7. 9 %	-2 5p p s
A d j d fre h f low te 1 us e c as	€ 2 4. 1m	€ 2 2. 2m
h f low Fr 1 ee ca s	€ ( 1. 6 ) m	€ ( 4. 4 ) m
h f low / A ion Fr E B I T D 1 ee ca s co nv ers	-1 4 %	-3 3 %
ita l e loy d1 Re tur n o n c ap mp e	8. 1 %	1 2. 2 %
de b * Co t t re ne	€ 3 8 3. 2m	€ 3 8 7. 7m
S T A T U T O R Y
Re ve nu e	€ 9 3 7. 1m	€ 9 5 2. 0m	-2 %
Op ing f it t era p ro	€ 6 4. 1m	€ 8 3. 6m	-2 3 %

f it be for Pr tax o e	€ 4 5. 4m	€ 7 1. 6m	-3 6 %
Pr f it for he io d t o p er	€ 3 5. 3m	€ 5 3. 4m	-3 4 %
Ba ic E P S ( ha ) nts s ce p er s re	4 2c	6 6c	-3 6 %
Ca h f low fro ing iv it ies t t s m op era ac	€ 9 4. 7m	€ 8 1. 9m
l n de b ( inc lu d ing S 1 6 lea ) To I F R ta t t e ses	€ 6 8 9m 7.	€ 6 8 6m 7.

1 The definition and rationale for the use of non-IFRS measures are included in note 18.

# Certain September 2022 values have been adjusted to reflect a prior year adjustment as referred to in note 2.

* Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net debt.

For further information:

FTI Consulting+44 203 727 1340FTI_RWI@FTIconsulting.comAlex Le May / Richard Mountain

Renewi plcAnne Metz, Director of Investor Relations +31 6 4167 9233 investor.relations@renewi.com

About Renewi

Renewi is a pure-play recycling company with a focus on extracting value from waste and used materials rather than disposal through incineration or landfill. The company also plays a key role in limiting resource scarcity through the creation of secondary materials, and by so doing addresses both social and regulatory trends and contributes to creating a cleaner, greener world.

Renewi's vision is to be the leading waste-to-product company in the world's most advanced circular economies. With a recycling rate of 64% which we believe to be among the highest in Europe, Renewi puts 7m tonnes of low carbon secondary materials back into reuse. This is a significant contribution to climate change mitigation and the circular economy. Our recycling protects virgin resources and avoids emissions of more than 2.5 million tonnes of CO².

Renewi, which draws on innovation and the latest technology to turn waste into useful materials – paper, metals, plastics, glass, wood, building materials, compost and water – employs over 6,500 people who work on 154 operating sites in 5 countries across Europe and the UK. Renewi is recognised as a market leader in Benelux and a European leader in advanced recycling.

Visit our website for more information: www.renewi.com.

Chief Executive Officer's Statement

Overview

As announced on October 4th, Renewi delivered performance broadly in line with the Board's expectations over the first half of FY24 against a backdrop of normalising recyclate prices and subdued economic activity. Year-on-year group revenue and underlying EBIT fell due to lower Commercial Waste volumes, particularly in C&D in the Netherlands and lower recyclate prices following Covid volume and price peaks. Most recyclate prices have now stabilised to levels around historic averages, with the majority of the decline, as well as ongoing inflationary pressures, being mitigated through pricing discipline and the margin benefits from the now completed Renewi 2.0 digitisation programme and other ongoing cost actions.

In Commercial Waste, inbound volumes stabilised in Belgium but continued to decline in the Netherlands during the first half, primarily due to ongoing demand weakness, especially from C&D customers. Pricing actions and cost savings have partially offset the impact of lower volumes, recyclate prices and cost inflation.

M&W's had a strong Q2 performance, following the ramp-up of throughput. The start of the year was impacted by pulling an annual maintenance stop into the first quarter, which is expected to benefit the division's results in the second half. Within Specialities, our glass recycling business, Maltha, continued to deliver strong performance, benefitting from the previously made operational enhancements. Coolrec maintained strong volumes, although was affected by lower plastics prices throughout the first half.

Further cost-cutting measures for our SG&A costs at both the divisional and central levels have been initiated in September 2023 and discussions are now being held with the relevant works councils. This initiative will result in a headcount reduction of 160 by 1 December 2023 with an expected cost to deliver of c€4-5m in year.

Group financial performance

Gr Su ou p mm ary		Re ven ue		Un de rly ing EB IT
	HY 24	HY 23	Va ria nc e	HY 24	HY 23	Va ria nc e
	€m	€m	%	€m	€m	%
Co ia l W ast mm erc e	69 3.3	694 .4	0%	50 .3	68 .4	-26 %
Mi lz & W ate ner a r	88 .4	93 .3	-5%	1.5	2.6	-42 %
Sp ia lit ies ec	178 .7	186 .3	-4%	10. 3	11. 3	-9%
Gr l se ice ntr oup ce a rv s	–	–		( 11. 4)	( 7.1 )	-61 %
Int nt er- seg me rev enu e	( 23 .3 )	( 22 .0 )		–	–
To tal	93 7.1	95 2.0	-2%	50 .7	75 .2	-33 %

The underlying figures above are reconciled to statutory measures in note 3 in the consolidated financial statements.

Total revenues were down 2% to €937.1m and underlying EBIT was down 33% to €50.7m. Profit before tax decreased by €26.2m, to €45.4m, driven by the recyclate prices settling close to historical average levels, together with lower volumes in Commercial Waste. Ongoing inflationary pressures were offset by pricing discipline and ongoing cost actions. Earnings per share fell to 42 cents (HY23: 66 cents).

Outbound revenue from the sale of recycled materials decreased to €167.9m (HY23: €196.5m) driven by the lower recyclate prices.

A free cash outflow of €1.6m (HY23: €4.4m as adjusted for the prior year restatement as referred to in note 2) reflects the planned increase in replacement capital expenditure and interest and loan fees payments offset in part by a positive working capital performance. Total cash outflow was €15.9m, as a result of growth capex projects for Vlarema 8 and our hard plastics facility in Acht and extension of landfill rights in Mineralz. As expected, core net debt to EBITDA increased to 2.1x at 30 September 2023 from 1.8x at the end of March 2023. TheBoard's long- term target remains 2.0x. Liquidity headroom including core cash and undrawn facilities remained strong at €307m.

Divisional performance

Co ial W ast mm erc e	Re ven ue			ing Un de rly EB IT		Op tin rof it era g p
	HY 24	HY 23	HY 24	HY 23	HY 24	HY 23
her lan ds Co ia l Ne t mm erc	45 7.3	45 9.7	25 .8	40 .3	25 .7	40 .3
lg ium ia l Be Co mm erc	23 7.5	23 6.3	24 .5	28 .1	24 .1	28 .2
Int nt ra- seg me rev enu e	( 1.5 )	( 1.6 )	–	–	–	–
l ( ) To €m ta	69 3.3	694 .4	50 .3	68 .4	49 .8	68 .5
Pe d-o d v % rio eri ari n-p o an ce
Ne her lan ds Co l ia t mm erc	-1%		-36 %		-36 %
Be lg Co l ium ia mm erc	1%		-13 %		-15 %
To l ta	0%		-26 %		-27 %
			Un de rly ing		Re tur n o n
			in EB IT m arg		tin op era g a sse	ts
			HY 24	HY 23	HY 24	HY 23

her lan ds Co ia l Ne t mm erc	5.6 %	8.8 %	14. 4%	24 .3%
lg ium Co ia l Be mm erc	10. 3%	11. 9%	34 .4%	51 .8%
To l ta	7.3 %	9.9 %	19. 4%	29 .9%

The return on operating assets excludes all landfill related provisions. The underlying figures above are reconciled to statutory measures in notes 3 and 18 in the consolidated financial statements.

The Commercial Waste Division revenues at €693m were flat and underlying EBIT fell by 26% to €50.3m, representing an underlying EBIT margin of 7.3%.

Revenues in the Netherlands declined by 1% to €457.3m and underlying EBIT fell by 36% to €25.8m. Underlying EBIT margins decreased by 320bps to 5.6% and return on operating assets fell to 14.4%. Volumes in the Netherlands have been impacted by ongoing demand weakness particularly from C&D customers due to declines in permissions for new building work resulting from environmental quotas. The decrease in recyclate prices is partially mitigated through the dynamic pricing contracts in which price fluctuations are shared with customers, buffering the impact on Renewi's results by about 65% of the recyclate movement. The volume decreases and residual portion of the declining recyclate prices impacted underlying EBIT margin for the first half. In response to this, divisional and central cost and efficiency measures are being executed before the end of 2023. We continued to exercise strong pricing discipline, ensuring inflation was passed on to customers throughout the period.

In Commercial Waste Belgium, revenue increased marginally to €237.5m and underlying EBIT fell by 13% to €24.5m. Underlying EBIT margins decreased by 160bps to 10.3%. Belgium has also been impacted by the lower recyclate prices; however, volumes have stabilised in the recent months and were marginally ahead of prior year. Strong pricing and cost actions taken have kept margins close to target levels.

Commercial efforts offering segment specific value propositions led to significant new contract wins in both the Netherlands and Belgium, examples include the Dutch Ministry of Defence, TotalEnergies and Custodial Institutions Agency. In Belgium cooperation with secondary disposers to meet the Vlarema 8 regulation also led to early successes, resulting in turning the volume decline into modest but profitable growth.

Key growth investments have progressed well, with our plastics facility in Acht being fully commissioned with promising results. The facility has capacity to process 25kT of hard plastics per year and is expected to be fully operational early 2024. Given the high level of purity achieved, pricing for the recyclates produced will drive strong financial returns from this facility once fully operational.

Our advanced sorting facility in Ghent is fully operational, achieving targeted recycling rates. Enforcement of Vlarema 8 legislation is ramping up within Flanders, and with full enforcement expected in 2024 we will commence the construction of our advanced sorting facility in Puurs accordingly.

Mi ral z & W ate ne r	HY 24 €m	HY 23 €m	Va ria nc e %
Re ven ue	88 .4	93 .3	-5%
der ly ing Un EB IT	1.5	2.6	-42 %
Un der ly EB IT ing in ma rg	1.7 %	2.8 %
Op ing fit t era pr o	9.5	11. 0	-14 %
ing Re tur at set n o n o per as s	-0. 9%	7.3 %

The return on operating assets excludes all landfill related provisions. The underlying figures above are reconciled to statutory measures in notes 3 and 18 in the consolidated financial statements.

The M&W division saw revenues decrease by 5% to €88.4m and underlying EBIT fall by €1.1m to €1.5m. The performance in the first half reflected the pull forward of annual maintenance stops originally scheduled for the second half. Throughput was increased from 35 to 50 tonnes per hour in September and there was a continued good performance at the waterside and pyro installations.

We continue to improve the quality and consistency of our sand and filler products to provide high quality products for the construction industry. End of waste certification was achieved for gravel, opening up the offtake market to any customer. Although certification for sand is still pending, a commercial agreement has been reached for the offtake of 200kT of sand, signalling its continued recovery.

We also continue to work with off takers to place our 0.6mT residual TGG stocks with shipping started under the offtake contract confirmed earlier in the year.

Sp eci ali tie s	HY 24	HY 23	Va ria nc e
	€m	€m	%
Re ven ue	178 .7	186 .3	-4%
der ly ing Un EB IT	10. 3	11. 3	-9%
Un der ly EB IT ing in ma rg	5.8 %	6.1 %
Op ing fit t era pr o	17. 0	10. 5	62 %
ing Re tur at set n o n o per as s	31 .5%	35 .8%

Underlying EBIT includes utilisation of €6.1m (HY23: €4.2m) from onerous contract provisions. The return on operating assets excludes the UK Municipal business. The underlying figures above are reconciled to statutory measures in notes 3 and 18 in the consolidated financial statements.

The Specialities Division saw revenue down by 4% at €178.7m impacted by the termination of the Derby UK Municipal contract in the first half last year. Underlying EBIT declined by €1m to €10.3m (HY23: €11.3m). Our glass recycling business, Maltha, continued delivering record performance with revenue of €40.8m up 26% from the prior year and underlying EBIT margin of 14.5%, up 430bps due to operational improvements. Coolrec has enjoyed continued strong volumes resulting in revenue up by 3% to €45.1m although underlying EBIT margin was impacted by lower plastics prices. The UK Municipal business showed stable operational performance in expectations in the first half.

Markets and strategy

Sustainability is at the heart of what we do

Our goal has always been to breathe new life into used materials and our aspiration is to become the leading waste-to-product company within Europe. Over the course of the first half, we continued to achieve significant progress in solidifying our position as a leader within the circular economies where we operate.

Over the period our recycling rate declined from 63.6% at March to 62.4% at September driven by cessation of certain activities during FY23 together with lower C&D volumes in Commercial. However, industry accolades throughout the first half of the year have further underlined our pioneering efforts in sustainable innovation and our significant contribution to the circular economy. We are honoured to have received the prestigious Trends Impact Award, a leading business award in Belgium, recognising our exemplary role in driving the circular economy forward. Furthermore, we are delighted to continue our collaborative project with Electrolux and were honoured to receive the Plastics Recycling Europe Award, acknowledging our achievement in creating the first fridge made entirely from recycled plastics.

Our strategy for long-term profitable growth

As set out in 2021, we have committed to three pillars of value creation; circular innovations, M&W recovery and Renewi 2.0 which are together expected to deliver a profitability increase of €60m by FY26. As previously announced the Renewi 2.0 programme, which was focused on making the customer-facing part of the company simpler and more efficient is widely complete and has supported productivity in HY24. The final cost of implementing Renewi 2.0 is expected to remain around €28m with the €20m run rate of benefits to be delivered during the current financial year. Circular innovations and M&W recovery have now become an integral component of our top-line growth and margin initiatives.

For M&W, operational plans are in place to deliver profitability improvements. We have converted our soil treatment business to produce building products, like sand and gravel, instead of cleaned soil. With the first customers in place to take these building products to produce concrete, we started to increase our throughput volume from 35 to 50 tonnes, boosting profitability. To complete the recovery we will further increase our throughput and quality over the coming period.

We have a clear business strategy to deliver long-term growth in both margins and volumes. Our strategy is focused on three key areas outlined as follows:

1. Top-line growth of 5% per annum: Supported by our commercial offerings and customer segment approach, we have established specific strategies to foster organic top-line growth. In addition to our revenue being closely linked to inflation through contract indexation and underpinned by dynamic regulatory and social change, we will expand our market share by delivering superior value and service to our customers, further developing our recycling capabilities and elevating the quality of secondary material production.

2. 1. Sustainable improvement in margins: We have implemented a set of immediate measures aimed at boosting efficiency by simplifying the organisation and optimising administrative procedures. These endeavours will be reinforced by our digital strategy, focused on enhancing customer-centric processes, digitising internal operations and elevating asset management capabilities. The successful execution of these initiatives is anticipated to lead to lasting improvements in profit margins, supporting our goal of achieving a high single-digit percentage EBIT margin.
3. 1. Improving Cash Conversion: We will increase our ability to generate free cash flow, with the clear objective of achieving a conversion rate of 40% of EBITDA by the end of FY26. This will be accomplished by eliminating legacy cash outflow, reducing exceptional costs and optimising asset utilisation, which, in turn, will result in decreased capital expenditures. This improved cash generation capacity will allow for a capital allocation policy encompassing both growth-focused investments and enhanced returns for shareholders.

Our capital allocation policy has been reset to reflect our ongoing disciplined approach to capital, prioritising shareholder returns and investing in growth:

• Ordinary dividend to be reinstated with a final dividend for the financial year ending 31 March 2024, and a progressive policy targeting sustainable growth whilst maintaining cover of 3.0-4.0x underlying earnings
• Investment of ~30% of free cash flow annually in capex for growth projects with return hurdle rates of at least 16% (pre-tax)
• In the medium term, disciplined M&A and supplemental returns to shareholders (including potential share buybacks) will be considered for excess capital, after organic investment requirements
• Long-term core debt leverage target of 2.0x EBITDA is reiterated

Outlook

Whilst we are mindful of the current challenging macroeconomic backdrop, our full year expectations are unchanged from the guidance provided in the trading update of 4 October 2023.

Targeted commercial initiatives and structural drivers, including Vlarema 8 legislation, are expected to support resilient demand in the near term across Commercial Waste Belgium, M&W and the Specialities businesses, which will mitigate, in part, continued low levels of C&D activity in the Netherlands over the second half. We anticipate the Dutch construction market will revert to growth by late 2024 or early 2025.

We continue to expect a significantly stronger EBIT performance in second half, underpinned by continued M&W earnings recovery, the initial contribution from additional SG&A cost actions, effective pricing and further productivity initiatives. Further benefits of our margin and portfolio initiatives, together with stabilised recyclate prices and tailwinds generated by Renewi 2.0, underpin confidence in further progress in FY25.

In the longer term we remain confident that, with regulation driving increasing demand for recycled materials, Renewi is well positioned for growth in its markets and to serve customers profitably as the circular economy develops and the market for low carbon secondary materials evolves.

FINANCE REVIEW

Fin cia erf l P an orm an ce	HY 24	HY 23	Va ria nc e
	€m	€m	%
Re ven ue	93 7.1	952 .0	-2%
ing DA Un de rly EB IT	113 .6	13 1.9	-14 %
ing Un de rly EB IT	50 .7	.2 75	-33 %
Op tin rof it era g p	64 .1	83 .6	-23 %
ing ofi efo Un de rly t b tax pr re	31 .3	61 .6	-49 %
d ing & ion l it No n-t t ra ex cep a em s	14. 1	10. 0

Pr ofi t b efo tax re	45 .4	71 .6
l ta har for he io d To ta t x c ge per	( 1) 10.	( 2) 18.
ofi t fo rio Pr r t he d pe	35 .3	53 .4
l re h Or nic wt ga an nu a ven ue gro	-2%	4%
der ly Un EB IT ing in ma rg	5.4 %	7.9 %
Fr Ca h F low /EB ITD A c ion ee s onv ers	-1. 4%	-3. 3%
Re l em loy d ita tur n o n c ap p e	8.1 %	12. 2%

The underlying figures above are reconciled to statutory measures in notes 3 and 18 in the consolidated financial statements.

FY24 revenues and underlying EBIT were down 2% and 33% respectively impacted by lower recyclates pricing compared to last year of €13m and lower volumes of €15m particularly in Commercial Netherlands. Cost inflation was mitigated by pricing discipline and cost savings including additional benefits from Renewi 2.0. Depreciation charge was higher by €4m in the period principally as a result of the impact of higher spend including the delivery of trucks in the last half of FY23. Interest charges were higher given the impact of additional borrowings entered into in the second half of FY23, increased interest rates and loan fee amortisation charges as referenced below. The level of exceptional and nontrading items in the current year was a credit of €14.1m as described below, resulting in a statutory profit for the period of €35.3m compared to €53.4m last year.

Non-trading and exceptional items excluded from pre-tax underlying profits

To enable a better understanding of underlying performance, certain items are excluded from underlying EBIT and underlying profit before tax due to their size, nature or incidence. Total non-trading and exceptional items excluding tax were a credit of €14.1m in the period (HY23: €10.0m). Given the increase in Government bond yields from March 2023, discount rates used for long-term landfill and onerous contract provisions have been increased, resulting in a non-cash credit of €17.1m. This item is recorded as non-trading and exceptional due to size and nature in line with our policy. As previously reported, we have accounted for the cost of the Renewi 2.0 programme as exceptional due to its size and nature. As announced for the March 2023 year end, the programme of activity was largely complete and will deliver its full run rate benefits in FY24. In the six months to September 2023 there was a further €1.0m of spend with a similar level expected in the next six months as the project is finally closed. Further details of other items are provided in note 5 to the consolidated interim financial statements.

Operating profit after taking account of all non-trading and exceptional items was €64.1m (HY23: €83.6m).

Net finance costs

Net finance costs excluding exceptional items increased with €6.2m to €19.8m (HY23: €13.6m), as a result of the impact of additional fixed rate borrowings in the second half of FY23, increased interest rates, the level of borrowings on the revolving credit facility and a non-cash write off of €1m of unamortised loan fees following the August 2023 renewal of the €400m revolving credit facility. Further details are provided in note 6 to the consolidated interim financial statements.

Taxation

Total taxation for the period was a charge of €10.1m (HY23: €18.2m). The effective tax rate on underlying profits at 27.1% (HY23: 26.5%) is based on the estimate of the full year effective tax rate. A tax charge of €1.6m is attributable to the non-trading and exceptional items of €14.1m as a number of items are not subject to tax.

Looking forward, we anticipate the underlying tax rate to remain around 27%. Due to items disallowed for tax in both the Netherlands and Belgium, our effective tax rate is higher than the nominal rates in the countries where we operate.

The Group statutory profit after tax, including all non-trading and exceptional items, was €35.3m (HY23: €53.4m).

Earnings per share (EPS)

Underlying EPS excluding non-trading and exceptional items was 27 cents per share, a decline of 29 cents given the lower profits and higher tax rate in the current period. Basic EPS was 42 cents per share compared to 66 cents per share in the prior year.

CASH FLOW PERFORMANCE

The funds flow performance table is derived from the statutory cash flow statement and reconciliations are included in note 18 in the consolidated financial statements. The table shows the cash flows from an adjusted free cash flow to total cash flow. The adjusted free cash flow measure focuses on the cash generation excluding the impact of historical liabilities relating to Covid-19 tax deferrals, settlement of ATM soil liabilities, spend relating to the UK PPP onerous contracts and other items including exceptional cash spend. Free cash flow represents the cash available to fund growth capital projects, pay dividends and invest in acquisitions.

Fu nd s fl rfo ow pe rm an ce	HY 24	HY 23
	€m	€m
der ly ing Un EB ITD A	113 .6	13 1.9
Wo rki ita l m ent ng ca p ov em	5.2	( 26 .0 )
Mo in is ion nd her ent ot vem pr ov s a	( 4.2 )	( 3.9 )
lac ita l ex d itu Ne t re ent p em ca p pen re	( 41 .4 )	( 35 .0 )
f o b lig ion nd lea lia b ilit ies Re nts at pay me o s u er se	( ) 25 .4	( ) 22 .8
nd lo fee Int st a ere an s	( ) 17. 8	( 1) 14.
Ta x	( 5.9 )	( 7.9 )
Ad jus ted fr h f low ee cas	24 .1	22 .2
De fer d C id tax re ov es	( 9.7 )	( 9.9 )
O ffta ke f A TM il o so	( 1.0 )	( 1.1 )
ic ipa l co UK M ntr act un s	( 9.8 )	( 7.1 )
i 2 nd her ion l sp d Re .0 a ot t new ex cep a en	( ) 1.6	( ) 2.2
Ot her	( 3.6 )	( 6.3 )
Fr h f low ee cas	( 1.6 )	( 4.4 )
h c ita l ex d itu Gr t ow ap pen re	( ) 15. 9	( ) 16. 0

Ac is it ion f d isp ls et o qu s n osa	1.6	( 60 .1 )
To tal sh flo ca w	( 15. 9)	( 80 .5)
Fr h f low /EB IT DA ion ee cas co nv ers	-1. 4%	-3. 3%

Free cash flow conversion is free cash flow as a percentage of underlying EBITDA. The non-IFRS measures above are reconciled to statutory measures in note 18 in the consolidated financial statements. September 2022 values for repayments of obligations under lease liabilities and UK Municipal contracts have each been adjusted by €0.4m to reflect the prior year adjustment as referred to in note 2.

Adjusted free cash flow was marginally ahead in the period at €24.1m (HY23: €22.2m) despite the EBITDA decline and increased replacement capex and interest payments which have been offset by a favourable movement on working capital in the period across both payables and receivables.

Replacement capital spend at €41.4m was slightly ahead of last year and in line with expectations. In addition, €18.7m of new leases or modifications have been entered into which are reported as right-of-use assets with a corresponding lease liability. These leases include the continuation of the truck replacement programme, property lease renewals or extensions and other assets. Growth capital spend of €15.9m includes further spend on the Vlarema 8 advanced sorting investments in Belgium and plastics sorting at Acht in the Netherlands. This level of growth spend is lower than originally planned given slight delays at the second and third sites for advanced sorting in Belgium, as full enforcement of the new regulation is ramping up.

The higher cash outflow relating to interest includes the settlement of €2.6m of fees relating to the recent renewal of the Group revolving credit facility. Tax payments were slightly lower in the current period given the timing of settlements in the prior year.

Looking at the three legacy components that are shown below adjusted free cash flow, there has been a further €9.7m repayment on Dutch Covid-19 tax deferrals as expected. The remaining balance of €20m will be settled over the next 12 months. Cash spend for placement of TGG soil stocks has remained limited in the first six months and there has been no change in the cost accrual for the remaining disposal of these historical balances. Cash outflow on UK PPP contracts was €9.8m, slightly higher than the prior year albeit lower than anticipated.

The acquisitions net of disposals inflow of €1.6m included the sale of an entity acquired with the Renewi Westpoort acquisition in September 2023. Other cash flows include funding for the closed UK defined benefit scheme and the funding of the Renewi Employee Share trust.

Net cash inflow from operating activities increased from €74.0m in the prior period to €88.8m in the current year. A reconciliation to the underlying cash flow performance as referred to above is included in note 18 in the consolidated interim financial statements.

INVESTMENT PROJECTS

Expenditure in FY24

The Group's long-term expectations for replacement capital expenditure remain around 80% of depreciation. FY24 full year replacement capital spend is expected to be around €80m. In addition, a further €10m of IFRS 16 lease investments are anticipated in the second half.

Expenditure on the circular innovation pipeline will continue in the coming months, however timing for the advanced sorting investments in Belgium for Vlarema 8 has been slightly postponed with the FY24 full year spend now expected to be around €30m.

Return on assets

The Group return on operating assets excluding debt, tax and goodwill decreased to 26.4% at September 2023 from 36.9% at March 2023 given the lower profits in the last six months. The Group post-tax return on capital employed at September 2023 was 8.1% compared to 10.6% at March 2023.

TREASURY AND CASH MANAGEMENT

Core net debt and leverage ratios

Core net debt excludes IFRS 16 lease liabilities and the net debt relating to the UK PPP contracts which is non-recourse to the Group and secured over the assets of the special purpose vehicles. Core net debt was in line with management expectations at €383.2m (March 2023: €370.6m) which resulted in a net debt to EBITDA ratio of 2.1x, comfortably within our covenant limit of 3.5x. Liquidity headroom including core cash and undrawn facilities remains strong at €307m, a slight reduction from March as a result of the increase in net debt.

Debt structure and strategy

All our core borrowings of bonds and loans are green financed. As of 30 September 2023, 81% of our net debt excluding UK PPP non-recourse net debt was on a fixed rate.

De bt Str uct ur e	Sep 23	r 2 3 Ma	ria Va nc e
	€m	€m	€m
Be lg ian Gr il b ds ta een re on	( 20 0.0 )	( 20 0.0 )	–
Gr RC F een	( 125 .4 )	( 102 .5 )	( 22 .9 )
Ot her Gr lo een ans	( 105 .0 )	( 105 .0 )	–
Gr bo ing be for lea lia b ilit ies oss rro w s e se	( 43 0.4 )	( 40 7.5 )	( 22 .9 )
IA S 1 lea lia b ilit ies d o her 7 t se an	( 7.3 )	( 9.1 )	1.8
fee Lo an s	3.3	2.3	1.0
Co h re cas	51 .2	43 .7	7.5
Co de bt (as t d efi nit ion s) net re pe r c ov en an	( ) 38 3.2	( ) 37 0.6	( ) 12. 6
lea lia b ilit ies IFR S 1 6 se	( ) 24 1.1	( ) 24 5.8	4.7
din Ne t d ebt clu UK PP P n et deb t ex g	( 624 .3 )	( 61 6.4 )	( 7.9 )
ric d c h b lan UK PP P r est te as a ces	23 .2	19. 0	4.2
UK PP P n de bt on -re cou rse	( 86 .8 )	( 88 .3 )	1.5
To tal t d ebt ne	( ) 68 7.9	( ) 68 5.7	( ) 2.2

In August 2023 the Group completed the renewal of its revolving credit facility, part of its Euro denominated multicurrency green finance facility. The size of the revolving credit facility ("RCF") remains unchanged at €400m and is for an initial five-year term to 2028 with two oneyear extension options to 2030 together with a €150m accordion option to increase the facility subject to lender approval at that time. Interest remains based on Euribor plus a margin grid based on leverage and green sustainability metrics performance. Financial covenants remained unchanged and will be tested semi-annually at September and March.

There is sufficient headroom in the RCF to settle on maturity €15m of European private placement funds in December 2023 and green retail bonds of €75m in July 2024.

The introduction of IFRS 16 on 1 April 2019 brought additional lease liabilities onto the balance sheet with an associated increase in assets. Covenants on our main bank facilities remain on a frozen GAAP basis and exclude IFRS 16 lease liabilities. The Group has complied with its banking covenants during the period. The Group operates a committed invoice discounting programme. The cash received for invoices sold at September 2023 was €106.3m (March 2023: €84.7m).

Debt borrowed in the special purpose vehicles (SPVs) created for the financing of UK PPP programmes is separate from the Group core debt and is secured over the assets of the SPVs with no recourse to the Group as a whole. Interest rates on PPP borrowings were fixed by means of interest rate swaps at contract inception. At September 2023 this net debt amounted to €63.6m (March 2023: €69.3m).

PROVISIONS AND CONTINGENT LIABILITIES

Around 88% of the Group's provisions are long-term in nature, with the onerous contract provisions against the PPP contracts being utilised over the remaining term of up to 17 years and landfill provisions for many decades longer. The provisions balance classified as due within one year amounts to €39m, including €3m for restructuring, €18m for onerous contracts, €10m for landfill related spend and €8m for environmental, legal and others. Further details are provided in note 13 to the consolidated interim financial statements.

Retirement benefits

The Group has a closed UK defined benefit pension scheme and at 30 September 2023, the scheme had an accounting deficit of €6.9m (March 2023: €4.3m). The change in the year was due to lower returns on pension scheme assets which were only partly offset by an increase in the discount rate assumption on scheme liabilities. The latest triennial actuarial valuation of the scheme was completed at 5 April 2021 and the future funding plan has been maintained at the current level of €3.5m per annum until December 2024. There are also several defined benefit pension schemes for employees in the Netherlands and Belgium which had a retirement benefit deficit of €5.0m at 30 September 2023 (March 2023: €5.0m).

PRINCIPAL RISKS AND UNCERTAINTIES

Renewi operates a risk management framework to identify, assess and control the most serious risks facing the Group. The 2023 Annual Report (pages 86 to 99) provides a discussion of the Group's principal risks and uncertainties. The Board believes that the key risks and associated mitigation strategies have not changed in the period.

Renewi continues to monitor the impact of the ongoing high inflationary environment pressures, fluctuations in recyclate prices and the economic uncertainty arising from geopolitical events. Cybercrime is an increasing risk for all businesses, and we have been investing to further strengthen our capabilities. All of these potential risks are actively reviewed and managed at the Board and in our executive management teams.

GOING CONCERN

The Directors have adopted the going concern basis in preparing these consolidated interim financial statements after assessing the Group's principal risks. Further details of the modelling and scenarios prepared are set out in note 2 of the financial statements. Having considered all the elements of the financial projections and applying appropriate sensitivities, the Directors confirm they have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and to meet its covenants.

STATEMENT OF THE DIRECTORS' RESPONSIBILITIES

The Directors confirm that these condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as adopted for use in the UK, and that the interim management report includes a fair review of the information required by DTR 4.2.7 R and DTR 4.2.8 R, namely:

• an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
• material related-party transactions in the first six months and any material changes in the related-party transactions described in the last Annual Report.

A list of current Directors is maintained on the Renewi plc website: www.renewi.com.

Otto de Bont Chief Executive Officer 8 November 2023

Annemieke den Otter Chief Financial Officer 8 November 2023

FORWARD-LOOKING STATEMENTS

Certain statements in this announcement constitute "forward-looking statements". Forward-looking statements may sometimes, but not always, be identified by words such as "will", "may", "should", "continue", "believes", "expects", "intends" or similar expressions. These forward-looking statements are subject to risks, uncertainties and other factors which, as a result, could cause Renewi plc's actual future financial condition, performance and results to differ materially from the plans, goals and expectations set out in the forward-looking statements. Such statements are made only as at the date of this announcement and, except to the extent legally required, Renewi plc undertakes no obligation to revise or update such forward-looking statements.

Consolidated Interim Income Statement (unaudited)

First half ended 30 September 2023

			Fir st h alf 202 3/2 4			Firs t ha lf 2 /23 022
	No te	Un der ly ing €m	No n-t rad ing & ion al i ept tem exc s €m	Tot al €m	Un der ly ing €m	adin No n-tr g & ion al i ept tem exc s €m	Tot al €m
Re ven ue	3, 4	93 7.1	–	93 7.1	952 .0	–	952 .0
Co f sa les st o	5	( 76 4.1 )	14 .1	( 75 0.0 )	( 76 6.2 )	4.9	( 76 1.3 )
Gr ofi t oss pr		173 .0	14 .1	187 .1	185 .8	4.9	190 .7
Ad mi nis ive tra t ex pen ses	5	( 122 .3)	( 0.7 )	( 123 .0)	( ) 110 .6	3.5	( ) 107 .1
Op tin rof it era g p	3	50 .7	13 .4	64 .1	75 .2	8.4	83 .6
Fin inc anc e om e	5, 6	5.1	0.7	5.8	4.9	1.6	6.5
Fin har anc e c ges	5	( .9) 24	–	( .9) 24	( ) 18. 5	–	( ) 18. 5
S har f re lts fro iat d jo int ntu e o su m ass oc es an ve res		0.4	–	0.4	–	–	–
Pr ofi t b efo ati tax re on	3	31 .3	14 .1	45 .4	61 .6	10. 0	71 .6
ion Ta xat	5, 7	( ) 8.5	( 1.6 )	( 10. 1)	( 16. 3 )	( 1.9 )	( 18. 2)
Pr ofi t fo he rio d r t pe		22 .8	12 .5	35 .3	45 .3	8.1	53 .4
At tri bu tab le t o:

f t he Ow ent ner s o par	21 .3	12 .5	33 .8	44 .3	8.1	52 .4
llin int No tro sts n-c on g ere	1.5	–	1.5	1.0	–	1.0
	22 .8	12 .5	35 .3	45 .3	8.1	53 .4

Ea rni sha ng s p er re	No te	Fir alf st h 202 3/2 4 ts cen	Firs t ha lf 2/2 202 3 ts cen
ic Ba s	8	42	66
Di lut d e	8	42	66
Un der ly ing ba ic s	8	27	56
Un der ly ing d ilu d te	8	27	56

Consolidated Interim Statement of Comprehensive Income (unaudited)

First half ended 30 September 2023

	Fir alf st h 202 3/2 4 €m	Firs t ha lf 2/2 202 3 €m
Ite th be las sifi ed sub ntl ofi r lo at to t o ms ma rec seq ue pr ss: y y
han d iffe lat ion f fo ign bs id iar ies Ex tra c ge ren ces on ns o re su	( 1.1 )	2.4
ir v lue h f low he dg Fa ent a m ov em on ca s es	8.2	13. 4
fer d t fa ir v lue h f low he dg De ent re em es ax on a m ov on ca s	( 2.1 )	( ) 1.8
har f o her hen ive in f in d for ing he ity ho d S t stm ent te t et e o co mp re s com e o ve s a cco un us equ m	0.1	0.4

			5.1	14. 4
wi sifi ofi Ite th at ll n ot be las ed to t o r lo ms rec pr ss:
Ac ria l lo de fin d ben fit ion hem tua ss on e e pen s sc es			( 4.1 )	( 4.0 )
fer d t ia l lo de fin d ben fit ion hem De act re ax on uar ss on e e pen s sc es			1.0	1.0
			( 3.1 )	( 3.0 )
Ot he eh siv e in e f the rio d, of net ta r c om pr en com or pe x			2.0	11. 4
Pro fit for he io d t per			35 .3	53 .4
To tal reh siv e in e f the rio d co mp en com or pe			37 .3	64 .8
At tri bu tab le t o:
Ow f t he ent ner s o par			35 .8	63 .8
llin int No tro sts n-c on g ere			1.5	1.0
To tal reh siv e in e f the rio d co mp en com or pe			37 .3	64 .8
l i d d i l h ( d i d ) C I B S t t t t o n s o a e n e r m a a n c e e e u n a u e
be As t 3 0 Se te 2 0 2 3 a p m r	No te	30 Sep ber tem 20 23 €m	Res d* tate 30 Sep ber tem 20 22 €m	31 Ma rch 20 23 €m

Assets

No ent set n-c urr as s
Go odw ill and int ibl ts ang e a sse	10	638 .6	635 .3	636 .3
Pro lan d e ipm ty, t an ent per p qu	10	620 .1	580 .1	617 .9
Rig ht- of- set use as s	10	245 .2	232 .9	253 .1
Inv est nts me		26. 5	15. 5	14. 8
oci d jo int Lo to ate tur ans ass s an ven es		0.2	0.2	0.2
Fin ial rel atin to P PP ets ntr act anc ass g co s		122 .2	127 .2	123 .4
riv ativ e fi cia l in De stru nts nan me	15	4.3	4.4	1.2
fin ed ben efit nsi sch lus De pe on em e su rp	14	–	4.5	–
Oth iva ble er r ece s		3.7	4.3	3.7
De fer red tax set as s		35. 3	35. 0	35. 6
		1, 696 .1	1, 639 .4	1, 686 .2
Cu nt ets rre ass
Inv ori ent es		25. 9	26 .7	25 .2
Inv est nts me		–	10. 7	10. 9
d jo Lo oci int to ate tur ven es ans ass s an		0.9	0.6	0.8
Fin ial rel atin to P PP ets ntr act anc ass g co s		7.4	7.7	7.6
de and oth iva ble Tra er r ece s		273 .2	290 .0	289 .6
riv ativ e fi cia l in De stru nts nan me	15	2.2	4.3	0.4
Cu eiv abl nt t rre ax rec e		1.5	0.9	1.5
Ca sh and sh iva len inc lud ing stri d c ash ts – cte ca equ re	11	74. 4	58. 9	62. 7
		385 .5	399 .8	398 .7
las sifi ed as h eld fo le As set s c r sa	10	0.6	1.5	0.6

		386 .1	40 1.3	399 .3
To tal set as s		2, 082 .2	2, 040 .7	2, 085 .5
Lia bil itie s
No lia bil itie ent n-c urr s
Bo win rro gs	11	( 620 .0)	( 697 .2)	( 68 1.6 )
De riv ativ e fi cia l in stru nts nan me	15	( 0.5 )	( 0.3 )	( 2.6 )
Oth t li abi liti er n on- cur ren es		( 22. 0)	( .3) 25	( 7) 34.
fin ed ben efit nsi sch def icit De pe on em es	14	( 11. 9)	( 4.6 )	( 9.3 )
vis ion Pro s	13	( 280 .1)	( 287 .0)	( 298 .2)
fer red lia bil itie De tax s		( 46. 7)	( 46 .4)	( 46 .4)
		( 981 .2)	( 1, 060 .8)	( 1, 072 .8)
Cu lia bil itie nt rre s
win Bo rro gs	11	( 142 .3)	( 49 .3)	( 66. 8)
De riv ativ e fi cia l in stru nts nan me		–	( 0.6 )	( 1.9 )
Tra de and oth ble er p aya s		( 500 .6)	( 507 .3)	( 52 1.8 )
Cu abl nt t rre ax pay e		( 35. 9)	( 31. 5)	( 31. 2)
vis ion Pro s	13	( 38. 3)	( .6) 40	( .7) 43
		( 717 .1)	( 629 .3)	( 665 .4)
To tal lia bil itie s		( 1, 698 .3)	( 1, 690 .1)	( 1, 738 .2)
Ne t a ts sse		383 .9	350 .6	347 .3
Iss ued ita l an d r ibu tab le t he f th ttr o t nt ca p ese rve s a ow ner s o e p are

Sha ital re c ap	99. 8	99. 5	99. 8

Sha ium re p rem	474 .1	473 .8	474 .1
Ex cha nge re ser ve	( 13. 3)	( 12. 3)	( 12. 2)
tain ed nin Re ear gs	( 188 .3)	( .4) 218	( .5) 224
	372 .3	342 .6	337 .2
No rol lin int ont sts n-c g ere	11. 6	8.0	10. 1
To tal uit eq y	383 .9	350 .6	347 .3

*The comparatives have been restated due to a prior period adjustment as explained in note 2 Basis of preparation.

Consolidated Interim Statement of Changes in Equity (unaudited)

First half ended 30 September 2023

	Sha re ital cap €m	Sha re miu pre m €m	d* Res tate han Exc ge r ese rve €m	Res d* tate ain ed Ret ing earn s €m	No n trol ling con inte rest s €m	Res d* tate al Tot ity equ €m
Ba lan 1 A il 2 023 at ce pr	99 .8	47 4.1	( 12. 2)	( 22 4.5 )	10 .1	34 7.3
Pro fit for he io d t per	–	–	–	33 .8	1.5	35 .3
Ot her hen ive ( los ) inc co mp re s s om e:
han los lat ion f fo ign bs id iar ies Ex n t c ge s o ran s o re su	–	–	( 1.1 )	–	–	( 1.1 )
ir v lue h f low he dg Fa ent a m ov em on ca s es	–	–	–	8.2	–	8.2
ria l lo de fin d ben fit ion hem Ac tua ss on e e pen s sc es	–	–	–	( 4.1 )	–	( 4.1 )
x i f o her hen ive in ite Ta ect t n r esp o co mp re s com e ms	–	–	–	( 1.1 )	–	( 1.1 )
har f o her hen ive in f in d for ing he ity ho d S t stm ent te t et e o co mp re s com e o ve s a cco un us equ m	–	–	–	0.1	–	0.1
siv inc rio To tal reh e ( los s) e f the d co mp en om or pe	–	–	( 1.1 )	36 .9	1.5	37 .3
har ba d c ion S sat e- se om pen	–	–	–	1.2	–	1.2

is ing har ba d c ion Mo ent tax sat vem on ar on s e- se om pen	–	–	–	( 0.2 )	–	( 0.2 )
har has d by he loy har Ow Em S e T t t es e ee n s pu rc p rus	–	–	–	( 1.7 )	–	( 1.7 )
Ba lan 30 Sep be r 2 023 at tem ce as	99 .8	47 4.1	( 13. 3)	( 188 .3)	11 .6	38 3.9
Ba lan at 3 1 M h 2 022 d ort ce arc as rep e –	99 .5	47 3.8	( 15. 0 )	( 22 7.1 )	7.0	33 8.2
f p rio d jus (n 2) Im ct o tm ent ote pa r y ear a	–	–	0.1	3.6	–	3.7
lan h 2 d Ba at 3 1 M 022 tat ce arc res e -	–	–	( ) 14. 9	( ) 22 3.5	7.0	34 1.9
Im f a dop ing dm IA S 3 7 ct o t ent s to pa am en	–	–	0.2	( 53 .4 )	–	( 53 .2 )
lan il 2 Ba 1 A 022 at ce pr	99 .5	47 3.8	( ) 14. 7	( ) 27 6.9	7.0	28 8.7
fit for he Pro t yea r	–	–	–	62 .9	3.7	66 .6
Ot her hen ive in ( los ): co mp re s com e s
Ex han in lat ion f fo ign bs id iar ies tra c ge ga on ns o re su	–	–	2.5	–	–	2.5
Fa ir v lue h f low he dg ent a m ov em on ca s es	–	–	–	3.7	–	3.7
Ac ria l lo de fin d ben fit ion hem tua ss on e e pen s sc es	–	–	–	( 15. ) 5	–	( 15. ) 5
x i f o her hen ive in ite Ta ect t n r esp o co mp re s com e ms	–	–	–	4.5	–	4.5
har f o her hen ive in f in d for ing he ity ho d S t stm ent te t et e o co mp re s com e o ve s a cco un us equ m	–	–	–	0.3	–	0.3
l co hen ive in for he To ta t mp re s com e yea r	–	–	2.5	.9 55	3.7	62 .1
Di ide nd id llin int to ont sts ere v pa no n-c ro g	–	–	–	–	( ) 0.6	( ) 0.6
har ba d c ion S sat e- se om pen	–	–	–	2.7	–	2.7
is ing har ba d c ion Mo ent tax sat vem on ar on s e- se om pen	–	–	–	( ) 0.9	–	( ) 0.9
Pro ds fro ise f e loy ion t cee m exe rc o mp ee op s	0.3	0.3	–	–	–	0.6
Ow har has d by he Em loy S har e T t t n s es pu rc e p ee rus	–	–	–	( 5.3 )	–	( 5.3 )

Ba lan at 3 1 M h 2 02 3 ce as arc	99 .8	47 4.1	( 12. 2)	( 22 4.5 )	10. 1	34 7.3
Ba lan at 3 1 M h 2 022 d ort ce arc as rep e –	99 .5	47 3.8	( 15. 0 )	( 22 7.1 )	7.0	33 8.2
Im f p rio d jus (n 2) ct o tm ent ote pa r y ear a	–	–	0.1	3.6	–	3.7
lan h 2 d Ba at 3 1 M 022 tat ce arc res e –	–	–	( ) 14. 9	( ) 22 3.5	7.0	34 1.9
Im f a dop ing dm IA S 3 7 ct o t ent s to pa am en	–	–	0.2	( 53 .4 )	–	( 53 .2 )
lan il 2 Ba 1 A 022 at ce pr	99 .5	47 3.8	( ) 14. 7	( ) 27 6.9	7.0	28 8.7
fit for he io d Pro t per	–	–	–	52 .4	1.0	53 .4
Ot her hen ive in ( los ): co mp re s com e s
Ex han in lat ion f fo ign bs id iar ies tra c ge ga on ns o re su	–	–	2.4	–	–	2.4
Fa ir v lue h f low he dg ent a m ov em on ca s es	–	–	–	13. 4	–	13. 4
Ac ria l lo de fin d ben fit ion hem tua ss on e e pen s sc es	–	–	–	( 4.0 )	–	( 4.0 )
x i f o her hen ive in ite Ta ect t n r esp o co mp re s com e ms	–	–	–	( 0.8 )	–	( 0.8 )
har f o her hen ive in f in d for ing he ity ho d S t stm ent te t et e o co mp re s com e o ve s a cco un us equ m	–	–	–	0.4	–	0.4
l co hen ive in for he io d To ta t mp re s com e per	–	–	2.4	61 .4	1.0	64 .8
S har ba d c ion sat e- se om pen	–	–	–	1.2	–	1.2
is ing har ba d c ion Mo ent tax sat vem on ar on s e- se om pen	–	–	–	( ) 0.6	–	( ) 0.6
har has d by he loy har Ow Em S e T t t n s es pu rc e p ee rus	–	–	–	( ) 3.5	–	( ) 3.5
lan 0 S ber d * Ba at 3 20 22 tem tat ce as ep res e –	99 .5	47 3.8	( ) 12. 3	( ) 21 8.4	8.0	35 0.6

*The comparatives have been restated due to a prior period adjustment as explained in note 2 Basis of preparation.

Consolidated Interim Statement of Cash Flows (unaudited)

First half ended 30 September 2023

		Fir st h alf 202 3/2 4	d* Res tate Firs t ha lf 202 2/2 3
	Not e	€m	€m
Pr ofi t b efo tax re	3	45. 4	71. 6
Fin e in anc com e	6	( 5.8 )	( ) 6.5
Fin har anc e c ges	6	24. 9	18. 5
Sha f re sul ts f iate d jo int tur re o rom as soc s an ven es		( 0.4 )	–
Op tin rof it era g p	3	64. 1	83. 6
isa tion d im irm of int ibl Am ort ent ts an pa ang e a sse	10	6.3	4.0
cia tion d im irm of lan d e ipm De ent rty t an ent pre an pa pr ope , p qu	10	34. 8	34. 1
cia tion d im irm of rig ht- of- De ent set pre an pa use as s	10	25. 7	23 .3
ain di sal of lan d e ipm int ibl Ne t g rty t an ent ts on spo pr ope , p qu ang e a sse ,		( 0.9 )	( ) 2.6
rtfo lio d p isio in din nd tion al i Po ent nts -tra tem ma nag em an rov n m ove me non g a exc ep s		( 18. 2)	( 9) 11.
Ne t d e in ovi sio ecr eas pr ns		( 11. 8)	( 11. 2)
Pay ela ted mit ted fu ndi of the de fin ed ben efit nsi sch nt r to me com ng pe on em es		( 1.8 )	( 1.8 )
Sha bas ed ion sat re- com pen		1.2	1.2
Op tin ash flo be for nt in rki ita l era g c ws e m ove me wo ng cap		99. 4	118 .7
in i rie Inc nto rea se nve s		( 0.6 )	( ) 4.0
( inc se) in eiv abl De cre ase rea rec es		13. 0	( 11. 7)
in abl De cre ase pay es		( 17. 1)	( 21 .1)
Ca sh flo fr tin ctiv itie ws om op era g a s		94. 7	81. 9
Inc aid e ta om x p		( 5.9 )	( 7.9 )
in flo w f tin ctiv itie Ne t c ash rom op era g a s		88. 8	74. 0
ing tiv itie Inv est ac s

Pu rch f in ibl tan ts ase s o g e a sse		( 10. 3)	( 6.1 )
Pu rch f pr lan d e ipm rty t an ent ase s o ope , p qu		( 50. 3)	( 49 .6)
Pro ds fro m d isp ls o f pr lan d e ipm rty t an ent cee osa ope , p qu		3.3	4.7
isit ion of bsi dia f ca sh uir ed Ac t o qu su ry, ne acq		–	( 5) 53.
Dis sal f su bsi dia and bu sin f ac isit ion of bu sin d c ash di sed of set et o set po s o ry ess as s n qu ess as s an spo	12	1.6	0.4
in oci d jo int Ne t m nts ate tur ove me ass s an ven es		( 0.1 )	( ) 1.0
tflo in f P nde r th e fi cia l as ode l ne f ca ital cei ved Ou PP t o ent set t o ws res pec arr ang em s u nan m p re		2.7	2.9
Fin e in anc com e		5.5	5.3
Ne ash tflo w f in tin ctiv itie t c ou rom ves g a s		( 47. 6)	( 96. 9)
Fin ing tiv itie anc ac s
Fin har d lo fee aid anc e c ges an an s p		( 23. 3)	( 4) 19.
nt i sh s b the loy Sha Inv Em re T est t me n o wn are p ee rus y		( 1.7 )	( ) 3.5
of ail bon ds Re nt ret pay me		–	( .0) 100
ds fro m b ank bo win Pro cee rro gs	11	189 .7	303 .2
of b ank bo win Re nt pay me rro gs	11	( 166 .6)	( 132 .6)
of P d ebt Re PP nt pay me	11	( 2.7 )	( 5.4 )
Re of obl iga tion nde r le lia bil itie nt pay me s u ase s	11	( 25. 4)	( 22 .8)
Ne t c ash (o utf low ) inf low fr fin ing tiv itie om anc ac s		( 30. 0)	19. 5
t in ( se) in uiv Ne dec sh d c ash ale nts cre ase rea ca an eq		11. 2	( ) 3.4
Eff of fo rei ect han rat han gn exc ge e c ges	11	0.5	( 1.3 )
Ca uiv inn ing of eri sh d c ash ale nts at th e b th od an eq eg e p	11	62. 7	63. 6
Ca sh d c ash uiv ale th nd of th eri od nts at an eq e e e p	11	74. 4	58. 9
*Th ativ hav e b ted du rio rio d a dju lain ed in n asi f pr ion sta e to stm ent ote 2 B rat e c om par es een re a p r pe as exp s o epa

Notes to the Consolidated Financial Statements

1.General information

Renewi plc is a public limited company listed on the London Stock Exchange with a secondary listing on Euronext Amsterdam. Renewi plc is incorporated and domiciled in Scotland under the Companies Act 2006, registered number SC077438. The address of the registered office is 16 Charlotte Square, Edinburgh, EH2 4DF. The nature of the Group's operations and its principal activities are set out in note 3.

2.Basis of preparation

This condensed set of consolidated interim financial statements for the six months ended 30 September 2023 has been prepared in accordance with the Disclosure and Transparency Rules of the United Kingdom Financial Conduct Authority and with IAS 34 Interim Financial Reporting as adopted for use in the UK. They should be read in conjunction with the 2023 Annual Report and Accounts, which have been prepared in accordance with UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006. The 2023 Annual Report and Accounts are available from the Company's website www.renewi.com.

These primary statements and selected notes comprise the unaudited consolidated interim financial statements of the Group for the six months ended 30 September 2023 and 2022, together with the audited results for the year ended 31 March 2023. These interim financial results do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. The comparative figures as at 31 March 2023 have been extracted from the Group's statutory Annual Report and Accounts for that financial year, but do not constitute those accounts. Those statutory accounts for the year ended 31 March 2023 were approved by the Board of Directors on 25 May 2023 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006.

The Board of Directors approved, on 8 November 2023, these consolidated interim financial statements which have been reviewed by BDO LLP but not been audited.

Going concern

The Directors have adopted the going concern basis in preparing these consolidated interim financial statements after assessing the Group's principal risks including an assessment of the impact of the ongoing high inflationary environment and economic uncertainty arising from geopolitical events.

The Directors have carried out a comprehensive assessment of the Group's ability to continue as a going concern. This assessment has involved the review of medium-term cash flow and covenant modelling over an 18-month period to 31 March 2025. This includes expectations on the future economic environment as well as other principal risks associated with the Group's ongoing operations. The assessment includes a base case scenario setting out the Directors' current expectations of future trading and a plausible but severe downside scenario to assess the potential impact on the Group's future financial performance. The key judgement in both scenarios is the level of economic disruption caused by ongoing geopolitical events.

The downside scenario includes significantly weaker macroeconomic conditions leading to a volume decline below the forecast economic outlook in all our territories in the remainder of the current year and into FY25. Other downsides include a significant decline in recyclate prices from the current levels to below long-term averages and operational downtime in some of our plants. These factors reduce FY24 underlying EBIT by 17% and FY25 underlying EBIT by 29% compared to the base case. No mitigating actions have been applied to our downside modelling as they are not necessary to avoid any breach of covenants or shortfall in liquidity.

In the base case and downside scenarios the Group has sufficient liquidity and headroom in its existing facilities and no covenants are breached at any of the forecast testing dates.

In addition, a reverse stress test calculation has been undertaken to consider the points at which the covenants may be breached. Underlying EBIT in FY25 would need to reduce by 46% compared to the base case. In the opinion of the Directors there is no plausible scenario or combination of scenarios that we consider to be remotely likely that would generate this result.

Having considered all the elements of the financial projections, sensitivities and mitigating actions, the Directors confirm they have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and to meet all banking covenants.

Prior year restatement

As reported in the Annual Report and Accounts for 31 March 2023, the Group undertook a more in depth analysis of the UK Municipal contract with East London Waste Authority (ELWA) as the contract is due to expire in December 2027. The contract is loss-making and therefore an onerous contract provision (OCP) has been recorded. At inception of this contract on 28 November 2003, a subsidiary of the Group entered a headlease arrangement for one location under the contract and then subleased it to ELWA Limited, an associate, on terms which mirrored the terms of the headlease. Prior to the disposal of the subsidiary in 2004 the headlease and sublease were novated to Renewi UK Services Limited (RUKS), a subsidiary of the Group. Upon adoption of IFRS 16 Leases from 1 April 2019, the Group accounted for the headlease as a right-of-use asset with the rental expense recorded as a repayment of the lease liability. The rental income from ELWA Limited was included within the cash flows used to measure the OCP.

During March 2023, external legal advice received clarified further the legal position in relation to the commercial substance of the lease arrangements. The legal advice stated that it is more likely than not that the sublease to ELWA Limited has taken effect as an assignment of the headlease by operation of law. The practical effect of this is the former subsidiary and ELWA Limited are directly liable for the headlease and that the novation in 2004 to RUKS was invalid. Accordingly, the Group determined that it was not appropriate to recognise the headlease as a right-of-use asset and the lease income should not have been included in the cash flows used to measure the OCP. The Group therefore concluded that the prior treatment was an error and that it was appropriate to restate the 1 April 2021 balance sheet which was actioned in the 2023 Annual Report and Accounts.

For the September 2023 condensed set of consolidated interim financial statements, it is appropriate to restate the 30 September 2022 Balance Sheet and Statement of Cash Flows. The impact on the 30 September 2022 balance sheet is a reduction in lease liabilities of €8.8m (of which €8.1m is non-current and €0.7m is current) with an increase in OCP of €5.1m (of which €4.1m is noncurrent and €1.0m is current) resulting in an impact of €3.6m on retained earnings and €0.1m on the exchange reserve. The related right-of-use asset was fully impaired therefore there is no impact on the net book value. However, as a result of the derecognition, cost and accumulated depreciation and impairment have both been reduced by €8.9m as at 1 April 2021 and 31 March 2022. The Income Statement impact for the six months ended 30 September 2022 is not material and therefore has not been restated. The impact on the Cash Flow Statement for the six months ended 30 September 2022 is to reduce the cash inflow from operating activities by €0.4m and reduce the cash outflow in financing activities by €0.4m. Earnings per share and alternative performance measures for the six months ended 30 September 2022 are not affected as a result of this correction.

The impact of the above restatements on the relevant line items in the Consolidated Balance Sheet and Statement of Changes in Equity is presented below:

Ba lan Sh eet tra ct ce ex	30 Sep tem ber 202 2 (pr evi ly r d) rte ous epo €m	Res tate nt me €m	30 Sep tem ber 202 2 (re ed) stat €m
To tal set as s	2, 040 .7	–	2, 040 .7
Lia bil itie s
t li ilit ies No ab n-c ur ren
ing Bo rro w s	( ) 70 5.3	8.1	( ) 69 7.2
Pro is ion v s	( 28 2.9 )	( 4.1 )	( 28 7.0 )

Ot her	( 76 .6 )	–	( 76 .6 )
	( 1, 064 .8 )	4.0	( 1, 06 0.8 )
Cu lia bil itie nt rre s
ing Bo rro w s	( ) 50 .0	0.7	( ) 49 .3
Pro is ion v s	( 39 .6 )	( 1.0 )	( 40 .6 )
Ot her	( ) 53 9.4	–	( ) 53 9.4
	( ) 62 9.0	( ) 0.3	( ) 62 9.3
To tal lia bil itie s	( ) 1, 69 3.8	3.7	( ) 1, 69 0.1
Ne t a ts sse	34 6.9	3.7	35 0.6
Iss d c ita l a nd tri bu tab le t he f th at o t nt ue ap re ser ves ow ne r o e p are
ine d e ing Re ta arn s	( ) 22 2.0	3.6	( ) 21 8.4
han Ex c ge res erv e	( 12. 4)	0.1	( 12. 3 )
her ity Ot eq u	57 3.3	–	57 3.3
	33 8.9	3.7	342 .6
No llin int tro sts n-c on g ere	8.0	–	8.0
To tal uit eq y	34 6.9	3.7	35 0.6

Adoption of new and revised accounting standards

The following accounting standards, amendments and interpretations became effective during the period but the application of these standards and interpretations had no material impact on the amounts reported in these condensed interim consolidated financial statements:

Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)

• Definition of Accounting Estimates (Amendments to IAS 8)
• IFRS 17 Insurance contracts
• Deferred Tax Related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
• International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12)

International Tax Reform – Pillar Two Model Rules

On 23 May 2023, the IASB issued International Tax Reform – Pillar Two Model Rules amendments to IAS 12 Income Taxes to clarify the application of IAS 12 to tax legislation enacted or substantively enacted to implement Pillar Two of the Organisation for Economic Co-operation and Development's Base Erosion and Profit Shifting project which aims to address the tax challenges arising from the digitalisation of the economy. The amendments include the mandatory temporary exception from the requirement to recognise and disclose deferred taxes in the Pillar Two model rules.

In July 2023, the UK government enacted legislation to implement the Pillar Two rules. The legislation is effective for the Group from 1 April 2024 and includes an income inclusion rule and a domestic minimum tax, which together are designed to ensure a minimum effective tax rate of 15% in each country in which the Group operates. Similar legislation is being enacted by other governments around the world. As a result of the amendments to IAS 12, no impact is expected on the financial statements for the year ending 31 March 2024, and work is ongoing to assess the potential impact for the March 2025 financial statements. As required by the amendments to IAS 12, the Group has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.

New standards and interpretations not yet adopted

Standards and interpretations issued by the International Accounting Standards Board (IASB) are only applicable if endorsed by the UK Endorsement Board (UKEB). At the date of approval of these financial statements there were no new IFRSs or IFRS Interpretation Committee interpretations which were early adopted by the Group. There are a number of new amendments effective for the period beginning 1 April 2024 however the Group does not expect a significant impact from any of the amendments.

Exchange Rates

In addition to the Group's presentational currency of Euros, the most significant currency for the Group is Sterling with the closing rate on 30 September 2023 of €1:£0.867 (30 September 2022: €1:£0.877) and an average rate for the period ended 30 September 2023 of €1:£0.0.867 (30 September 2022: €1:£0.852).

Critical accounting judgements and estimates

The preparation of financial statements in accordance with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenditure. In preparing these condensed consolidated interim financial statements, management have reviewed the nature of the significant judgements in applying the Group's accounting policies, the key sources of estimation uncertainty and other areas of focus, as set out on pages 180 to 182 of the 2023 Annual Report and Accounts. It has been determined that there have been no significant changes in methodology in relation to these key estimates and other areas of focus.

3.Segmental reporting

The Group's chief operating decision maker is considered to be the Board of Directors. The Group's reportable segments are determined with reference to the information provided to the Board of Directors, in order for it to allocate the Group's resources and to monitor the performance of the Group. These segments are unchanged from March 2023 and are set out below:

Co ia l W ast mm erc e	Co lle ion d t f c ia l w in he Ne her lan ds d B lg ium ct tm ent ast t t an rea o om me rc e an e
Mi lz & W ate ner a r	De ina ion b ilis ion d r f h ig hly mi d m ria ls t du ifie d s nd du fo he ion in du in he tam t ta at nta nat ate t cts r t stru ct stry t con , s an e-u se o co e o p ro ce cer eco ary pr o con Ne her lan ds d B lg ium t an e
ia lit ies Sp ec	ing lan foc ing lin nd d ive ing ific he ion in he he her lan ds, lg ium d P l. Pro s. T UK Ne Be Fra ts rt ast tre t t t t ort ces s p us on re cyc g a sp ec e s am op era s a re nce an ug a w , ,
Gr l se ice ntr oup ce a rv s	d o ffic fun ion He te ct a e c orp ora

The profit measure the Board of Directors uses to evaluate performance is underlying EBIT. The Group accounts for inter-segment trading on an arm's length basis.

The Commercial Waste reportable segment includes the Netherlands Commercial Waste and Belgium Commercial Waste operating segments which have been aggregated and reported as onereportable segment as they operate in similar markets in relation to the nature of the products, services, processes and type of customer.

Re ven ue	Fir st h alf 202 3/2 4 €m	Firs t ha lf 202 2/2 3 €m
her lan ds ia l W Ne Co t ast erc e mm	45 7.3	45 9.7
lg ium ia l W Be Co ast mm erc e	23 7.5	23 6.3
Int nt ra- seg me	( 1.5 )	( ) 1.6
ial Co W ast mm erc e	693 .3	694 .4
Mi z & ral W ate ne r	88 .4	93 .3
Sp eci ali tie s	178 .7	186 .3
Int nt er- seg me rev enu e	( 23 .3)	( 22 .0 )
Re ven ue	93 7.1	952 .0
Re sul ts	Fir alf st h	Firs t ha lf

		202 3/2 4 €m	202 2/2 3 €m
her lan ds Co ia l W Ne t ast mm erc e		25 .8	40 .3
lg ium Co ia l W Be ast mm erc e		24 .5	28 .1
Co ial W ast mm erc e		50 .3	68 .4
Mi ral z & W ate ne r		1.5	2.6
Sp eci ali tie s		10 .3	11. 3
Gr ral rvi ent ou p c se ces		( 11. 4)	( 7.1 )
Un de rly ing EB IT		50 .7	75 .2
d ing d e ion l it (no ) No 5 n-t t te ra an xce p a em s		13 .4	8.4
Op tin rof it era g p		64 .1	83 .6
Fin inc anc e om e		5.1	4.9
Fin har anc e c ges		( 24 .9)	( ) 18. 5
Fin inc d ing d e ion l it n t t anc e om e – no ra an xce p a em s		0.7	1.6
S har f re lts fro iat d jo int ntu e o su m ass oc es an ve res		0.4	–
Pr ofi t b efo ati tax re on		45 .4	71 .6
	Min lz & era	t de bt a nd Tax , ne

Water €m

Specialities €m

Group central services

€m

derivatives €m

Total€m

Commercial Waste

€m

30 September 2023

Net assets

Gr ent set oss no n-c urr as s	1, 137 .5	26 5.4	21 1.0	42 .6	39 .6	1, 696 .1
Gr nt ets oss cu rre ass	193 .1	29 .7	.6 77	7.6	78 .1	38 6.1
Gr lia b ilit ies oss	( 37 0.5 )	( 20 1.5 )	( 23 1.5 )	( 49 .4)	( 84 5.4 )	( 1, 69 8.3 )
Ne ( lia bil itie s) t a ts sse	96 0.1	93 .6	57 .1	0.8	( 72 7.7 )	38 3.9
31 Ma h 2 02 3 rc
Gr ent set oss no n-c urr as s	1, 143 .8	26 2.6	21 1.1	31 .9	36 .8	1, 686 .2
Gr nt ets oss cu rre ass	20 6.6	35 .2	75 .0	17. 9	64 .6	39 9.3
Gr lia b ilit ies oss	( 37 9.3 )	( 21 6.5 )	( 23 9.0 )	( 72 .9 )	( 830 .5 )	( 1, 73 8.2 )
Ne ( lia b ilit ies ) t a ts sse	97 1.1	81 .3	47 .1	( 23 .1 )	( 72 9.1 )	34 7.3

4.Revenue

The following tables show the Group's revenue by type of service delivered and by primary geographical market.

By of vic ty pe ser e	Com rcia l W aste me €m	Min lz & era Wa ter €m	Spe cial itie s €m	Inte ent r-se gm €m	Tot al €m
Fir st h alf 20 23/ 24
Inb d oun	56 2.2	77 .7	104 .0	( 21 .2)	72 2.7
bo d Ou t un	87 .1	10 .7	72 .0	( 1.9 )	167 .9
On ite -s	32 .3	–	–	( 0.2 )	32 .1
her Ot	11 .7	–	2.7	–	14 .4
To tal re ven ue	693 .3	88 .4	178 .7	( 23 .3)	93 7.1
Fir ha lf 2 /23 022 st
Inb d oun	53 8.4	77 .6	118 .3	( ) 20 .2	714 .1

Ou bo d t un	115 .3	15. 7	67 .2	( 1.7 )	196 .5
On ite -s	31 .6	–	–	( 0.1 )	31 .5
Ot her	9.1	–	0.8	–	9.9
To l re ta ven ue	694 .4	93 .3	186 .3	( 22 .0 )	952 .0

	rcia l W	Min lz & era	cial itie
By hic al rke t ge og rap ma	Com aste me €m	Wa ter €m	Spe s €m	Inte ent r-se gm €m	Tot al €m
Fir st h alf 20 23/ 24
Ne her lan ds t	45 6.7	77 .5	38 .1	( 22 .1)	55 0.2
lg ium Be	23 6.6	10 .9	22 .1	( 1.2 )	26 8.4
UK	–	–	92 .8	–	92 .8
Fra nce	–	–	14 .4	–	14 .4
l Po rtu ga	–	–	11 .3	–	11 .3
To tal re ven ue	693 .3	.4 88	178 .7	( 23 .3)	93 7.1
Fir ha lf 2 /23 022 st
Ne her lan ds t	45 9.3	79 .7	31 .7	( 20 .9 )	54 9.8
lg ium Be	23 5.1	13. 6	23 .1	( 1.1 )	27 0.7
UK	–	–	110 .0	–	110 .0
Fra nce	–	–	13. 5	–	13. 5
her Ot	–	–	8.0	–	8.0
l re To ta ven ue	694 .4	93 .3	186 .3	( ) 22 .0	952 .0

Revenue recognised at a point in time amounted to €825.1m (2022/23: €841.1m) with the remainder recognised over time. The majority of the Commercial Waste and Specialities revenue is recognised at a point in time, whereas for Mineralz & Water 67% of revenue (2022/23: 65%) is recognised over time.

5.Non-trading and exceptional items

To improve the understanding of the Group's financial performance, items which are not considered to reflect the underlying performance are presented in non-trading and exceptional items. These include, but are not limited to, significant impairments, significant restructuring of the activities of an entity including employee associated severance costs, acquisition and disposal related transaction costs, significant fires, onerous contracts arising from restructuring activities or if significant in size, profit or loss on disposal of properties or subsidiaries as these are irregular, the impact of terminating hedge derivatives, ineffectiveness of derivative financial instruments, the impact of changing the discount rate on provisions, amortisation of acquisition related intangibles and one-off tax credits or charges. The amortisation charge on acquisition related intangible assets is excluded from underlying results due to its non-trading nature in the same way as other significant items from M&A activity are excluded. The performance of the acquired business is assessed as part of the Group's underlying revenue and EBIT. By excluding this amortisation charge there is comparability across divisions and reporting periods.

	Fir st h alf 202 3/2 4 €m	Firs t ha lf 202 2/2 3 €m
Re i 2 .0 i ent new mp rov em pr og ram me	1.0	2.0
Po rtf oli tiv ity ent o m an ag em ac :
M& A r lat d a iv ity ct e e	0.8	–
Pri r d isp ls or yea osa	( 1.1 )	( 1.7 )
Di l o f b ine in he Mi lz & r d iv is ion W ets t ate spo sa us ss ass ner a	–	( ) 3.8
	( 0.3 )	( ) 5.5
Ch in lo ovi sio -te an ges ng rm pr ns :

C han in d isc t ra tes ges oun	( 17. 1)	( 15. 3 )
ic ipa l re f o is ion UK M nt ont t p un ass ess me o ner ou s c rac rov s	–	8.9
	( 17. 1)	( 6.4 )
Ine ffe cti d i of ina tio f c ash flo he dg act te ven ess an mp rm n o w es	( 0.7 )	( 1.6 )
Am isa tio f a isit ion lat ed int ibl ort n o cqu re an g es	3.0	1.5

No rad ing d e tio l it s in ofi t b efo n-t tax an xce p na em pr re	( 14. 1)	( 10. 0 )
d ing d e ion l it Ta -tra t x o n n on an xce p a em s	1.6	1.9
To tal rad ing d e tio l it s in ofi fte n-t t a r t no an xce p na em pr ax	( 12. 5)	( 8.1 )

Renewi 2.0 improvement programme

Renewi 2.0 improvement programme is a significant one-off business improvement project with total capital and one-off costs of €28m and as a result is considered to be exceptional. Following the transformational merger in 2017 the goal of the Renewi 2.0 programme is to make the Group more streamlined and more efficient and improve customer experience and increase employee engagement. As noted in the year to March 2023 financial statements, the programme is now completed with final costs coming through and the €20m run rate of savings will be delivered in the current financial year. The costs in the period of €1.0m (2022/23: €2.0m) were recorded in administrative expenses.

Portfolio management activity

The current year M&A related activity costs of €0.8m (2022/23: €nil) relate to strategic initiatives.

The prior year disposals credit in the current period of €1.1m (2022/23: €1.7m) related to the release of a provision for a previous business disposal following a reassessment at 30 September 2023. The prior period credit related to an insurance claim recovery in relation to a prior business disposal. Also in the prior year certain business assets in the Mineralz & Water division were sold generating a profit of €3.8m. The €0.3m credit (2022/23: €5.5m) was all recorded in administrative expenses.

Changes in long-term provisions

The credit for changes in discount rates of €17.1m (2022/23: €15.3m) relates to the movement in risk free rates as a result of the half yearly assessment of Government bond yields which has impacted landfill related and onerous contract provisions.

The prior year charge of €8.9m in relation to the reassessment of UK Municipal onerous contract provisions was due to revised assumptions on cost inflation as a result of the high inflationary environment.

The total credit of €17.1m (2022/23: €6.4m) has been recorded in cost of sales.

Items recorded in finance income

The €0.7m credit (2022/23: €1.6m) relates to ineffectiveness of the Cumbria PPP project interest rate swaps as a result of a revised repayment programme for the PPP non-recourse debt.

Amortisation of acquisition related intangibles

Amortisation of intangible assets acquired in business combinations of €3.0m (2022/23: €1.5m) is all recorded in cost of sales.

Tax on non-trading and exceptional items

The tax charge for non-trading and exceptional items is only €1.6m (2022/23: €1.9m) as a number of items are not subject to tax.

6.Net finance charges

Fir	Firs
alf	t ha
st h	lf
202	2/2
3/2	202
4	3
€m	€m

Finance charges

Int n b ing * st o ere orr ow s	10 .2	6.4
Int n P PP de bt st o ere no n-r eco urs e	3.2	3.4
Le lia b ilit ies in ter est ase	4.5	3.8
ind ing f d isc is ion (no 13 ) Un t o te o oun n p rov s w	4.5	3.9
Ot her fin ost anc e c s	2.5	1.0
To tal fin ch an ce arg es	24 .9	18. 5

Finance income

(	(
4.1	)
)	4.3
(	(
1.0	0.6
)	)
(	(
5.1	)
)	4.9
(	(
0.7	1.6
)	)
(	(
5.8	)
)	6.5

Ne t fi ha na nc e c rge s	19 .1	12. 0
bo has be end ed lud f lo fee hic h w usl how ely win inc rtis atio vio *In ter est to rat on rro gs en am e a mo n o an s w as pre y s n s epa

7.Taxation

The tax charge based on the profit for the period is made up as follows:

	Fir st h alf	Firs t ha lf
	202 3/2 4	202 2/2 3
	€m	€m
Cu nt tax rre

ion UK rat tax co rpo
Cu nt rre yea r –	0.4	0.4
Ov tax ers eas
Cu nt rre yea r –	10 .2	14. 8
To tal nt tax ch cu rre arg e	10 .6	15. 2
fer d t De re ax
Or ig ina ion d r l o f te d iffe in he io d t t t p an eve rsa mp ora ry ren ces cur ren er –	( 0.5 )	3.0
To tal de fer red x ( dit ) c ha ta cre rge	( 0.5 )	3.0
To tal ha fo he rio d ta r t x c rge pe	10 .1	18. 2

The tax charge is recognised based on management's best estimate of the full year effective tax rate on expected full year profits to March 2024. The estimated average underlying annual tax rate for the year to 31 March 2024 is 27.0% (2022/23: 26.5%).

Uncertain tax positions

As referenced in the Match 2023 financial statements, the Dutch Tax Authorities have issued assessments adjusting the interest rate applied for tax purposes on some intra group loans from the UK to the Netherlands. The assessments have been appealed by the Group given that the interest rate charged of 5.9% is based on a detailed transfer pricing study and the Group will continue to defend the position vigorously. A provision of €1.4m is included in the accounts as a reduction in deferred tax asset in respect of losses, as this is considered to be the most probable outcome. It is noted that the maximum exposure in respect of this topic is calculated to be €11.6m (current tax charge €2.1m, deferred tax charge €9.5m) should the Group be wholly unsuccessful in its defence.

8.Earnings per share

Underlying basic and diluted earnings per share exclude non-trading and exceptional items net of related tax. Non-trading and exceptional items are those items that are disclosed separately on the face of the Income Statement, because of their size or incidence, to enable a better understanding of performance. The Directors believe that adjusting earnings per share in this way enables comparison with historical data calculated on the same basis to reflect the business performance in a consistent manner and reflect how the business is managed and measured on a day to day basis.

	Fir st h alf 202 3/2 4			Firs t ha lf 2 022 /23
	Bas ic	Dil utio ns	Dil d ute	Bas ic	Dil utio ns	Dil d ute
ig hte d a mb f s har (m illi ) We ver age nu er o es on	79 .5	0.2	79 .7	79 .4	0.4	79 .8

fit fte x ( €m ) Pro r ta a	35 .3	–	35 .3	53 .4	–	53 .4
No llin int ( €m ) tro sts n-c on g ere	( 1.5 )	–	( 1.5 )	( ) 1.0	–	( ) 1.0
fit fte ibu b le t rd ina har ho lde ( ) Pro €m r ta ttr ta a x a o o ry s e rs	33 .8	–	33 .8	52 .4	–	52 .4
Ba sic rni sha (ce ) nts ea ng s p er re	42	–	42	66	–	66

The reconciliation between underlying earnings per share and basic earnings per share is as follows:

	Fir st h alf 202 3/2 4		Firs t ha lf 2 022 /23
	Cen ts	€m	Cen ts	€m
Un der ly ing rni har /U nd ly ing fit fte ibu b le t rd ina har ho lde r ta ttr ta ea ng s p er s e er pr o a x a o o ry s e rs	27	21 .3	56	44 .3
Ad jus tm ent s:
No d ing d e ion l it n-t t ra an xce p a em s	18	14 .1	13	10. 0
d ing d e ion l it Ta -tra t x o n n on an xce p a em s	( 2)	( 1.6 )	( 3 )	( 1.9 )
sic rni re/ rni fte rib din Ba sha Ea r t att uta ble to sh ho lde ea ng s p er ng s a ax or ary are rs	42	33 .8	66	52 .4
Di lut d u nd ly ing rni har /U nd ly ing fit fte ibu b le t rd ina har ho lde r ta ttr ta e er ea ng s p er s e er pr o a x a o o ry s e rs	27	21 .3	56	44 .3
Di lut ed ba sic rni sha re/ Ea rni fte rib ble din sh ho lde r t att uta to ea ng s p er ng s a ax or ary are rs	42	33 .8	66	52 .4

The weighted average number of shares takes into account the movements in the Renewi Employee Share Trust. The Trust owns 600,326 (2022/23: 578,722) £1 shares of the issued share capital of the Company in trust for the benefit of employees of the Group. During the period 292,070 £1 shares were purchased by the Trust at a cost of €1.7m and 544,967 £1 shares were transferred to individuals under the Long-Term Incentive Plan and Deferred Annual Bonus schemes.

9.Dividends

The Directors do not recommend an interim dividend for the current year (2022/23: nil per share). The Directors did not recommend a final dividend for the year ended March 2023 (2022: nil per share).

10.Goodwill, intangible assets, property, plant and equipment, right-of-use assets and assets held for sale

	Goo dw ill €m	ible Inta ng Ass ets €m	lant Pro ty, per p and ipm ent equ €m	Ri ht-o f-us g e ets ass €m	Tot al €m
Ne bo k v lue 1 A il 2 022 t at o a pr	55 1.6	41 .2	55 3.6	21 3.8	1, 360 .2
Ad d it ion /m d ific ion at s o s	–	8.7	117 .9	57 .4	184 .0
Ac is it ion hro h b ine b ina ion s t t qu ug us ss com s	17. 4	27 .9	19. 0	38 .4	102 .7
Di ls spo sa	–	–	( 4.9 )	( 5.4 )	( 10. 3 )
fer d t o A he ld for le Tra ts ns re sse sa	–	–	( 0.1 )	–	( 0.1 )
fer fro rig ht- f-u lan d e ipm Tra ets to ert t an ent ns m o se ass pr op p qu y,	–	–	2.0	( ) 2.0	–
isa ion d dep iat ion har Am ort t an rec c ge	–	( ) 10. 5	( ) 69 .8	( ) 47 .3	( ) 127 .6
irm har Im ent pa c ge	–	–	( ) 1.7	( ) 2.3	( ) 4.0
Re l o f a ior ar' im irm har ent ver sa pr ye s pa c ge	–	–	2.0	0.5	2.5
Ex han han rat c ge e c ges	–	–	( 0.1 )	–	( 0.1 )
bo k v lue h 2 Ne 31 Ma 02 3 t at o a rc	56 9.0	67 .3	61 7.9	25 3.1	1, 507 .3
Ad d it ion /m d ific ion at s o s	–	10. 0	38 .5	18. 8	67 .3
Di ls spo sa	–	–	( 2.3 )	( 0.2 )	( 2.5 )
Di l o f a bu ine spo sa s ss	( 1.4 )	–	–	–	( 1.4 )
fer fro rig ht- f-u lan d e ipm Tra ets to ert t an ent ns m o se ass pr op p qu y,	–	–	0.8	( 0.8 )	–
Am isa ion d dep iat ion har ort t an rec c ge	–	( 6.3 )	( 34 ) .7	( 25 ) .7	( 66 ) .7
irm har Im ent pa c ge	–	–	( ) 0.1	–	( ) 0.1
t 3 0 S r 2 023 Ne t b k v alu tem be oo e a ep	56 7.6	71 .0	62 0.1	24 5.2	1, 503 .9

At 30 September 2023, the Group had property, plant and equipment commitments of €42.7m (31 March 2023: €53.1m), right-of-use asset commitments of €13.1m (31 March 2023: €17.7m) and intangible asset commitments of €0.2m (31 March 2023: €7.6m).

Assets held for sale

The Group had €0.6m assets classified as held for sale at 30 September 2023. The assets include €0.6m land and buildings in the Belgium Commercial Division which are expected to be sold within the next 12 months.

11.Cash and borrowings

Cash and cash equivalents are analysed as follows:

	30 Sep tem ber 202 3 €m	30 Sep ber tem 202 2 €m	31 rch Ma 202 3 €m
h a ban k a nd in ha nd Ca t s cor e –	51 .2	39 .2	43 .7
Ca h a ban k – ict d r lat ing PP P c t tr to tra cts s res e e on	23 .2	19. 7	19. 0
l ca h a nd h e iva len To ta ts s ca s qu	74 .4	58 .9	62 .7

Borrowings are analysed as follows:

	30 Sep tem ber 202 3	Res d* tate 30 Sep ber tem 202 2	31 rch Ma 202 3
	€m	€m	€m
No t b ing n-c ur ren orr ow s
Re il b ds ta on	124 .7	199 .4	199 .5
Ba nk lo d p riv lac fix d int ate ent st r ate ans an p em s – e ere s	89 .6	24 .9	89 .6
Ba nk lo flo ing in at ter est tes # ans ra –	122 .9	190 .7	10 1.1
lia b ilit ies Le ase	20 1.4	196 .1	20 8.3
de bt PP P n on -re cou rse	81 .4	86 .1	83 .1
	62 0.0	69 7.2	68 1.6
Cu bo wi nt rre rro ng s
Re il b ds ta on	74 .9	–	–
Ba nk lo d p riv lac fix d int ate ent st r ate ans an p em s – e ere s	15 .0	–	15. 0
nk lo d o dra fts flo ing in Ba at ter est tes ans an ver ra –	0.3	1.4	0.1

lia b ilit ies Le ase	46 .7	42 .7	46 .5
de bt PP P n on -re cou rse	5.4	5.2	5.2
	142 .3	49 .3	66 .8

The revolving credit facility is now included in Bank loans – floating interest rates.

*The comparatives for lease liabilities have been restated due to a prior year adjustment as explained in note 2 Basis of preparation.

In August 2023, the Group completed the renewal of its revolving credit facility, part of its Euro denominated multicurrency green finance facility. The size of the revolving credit facility remains unchanged at €400m and is for an initial five-year term to 2028 with two one-year extension options to 2030 together with a €150m accordion option to increase the facility subject to lender approval at that time. Financial covenants remained unchanged and will be tested semi-annually at September and March. The interest margin is adjusted based on the prevailing leverage ratio together with performance against three green sustainability metrics. As required by IFRS 9 Financial Instruments, we have undertaken a detailed assessment and determined that the terms of the new facility are substantially different from the facility being replaced. As a result there is an extinguishment of the previous facility which has resulted in €1.1m of unamortised loan fees being charged to the Income Statement in the period.

Movement in total net debt

	At 1 Ap ril 202 3 €m	Cas h fl ow s €m	Oth er sh c han non -ca ges €m	Exc han ge ent mo vem s €m	Dis ed o f pos €m	At 30 Sep ber tem 20 23 €m
nk lo d o dra fts flo ing in Ba at ter est tes ans an ver ra –	( ) 10 1.2	( ) 23 .1	1.1	–	–	( 123 .2)
Ba nk lo d p riv lac fix d int ate ent st r ate ans an p em s – e ere s	( 104 .6 )	–	–	–	–	( 104 .6)
il b ds Re ta on	( 199 ) .5	–	( 0.1 )	–	–	( 199 .6)
Le lia b ilit ies ase	( 25 4.8 )	25 .4	( 18. 7 )	( 0.1 )	0.1	( 24 8.1 )
De bt lu d ing PP P n de bt exc on -re cou rse	( 66 0.1 )	2.3	( 17. 7 )	( 0.1 )	0.1	( 67 5.5 )
PP P n de bt on -re cou rse	( 88 .3 )	2.7	–	( 1.2 )	–	( 86 .8)
To l g de bt ta ros s	( 74 8.4 )	5.0	( 17. 7 )	( 1.3 )	0.1	( 76 2.3 )
h a nd h e iva len Ca ts – s ca s qu cor e	43 .7	7.9	–	0.3	( ) 0.7	51 .2
Ca h a nd h e iva len ict d r lat ing PP P c ts – tr to ont ts s ca s qu res e e rac	19. 0	4.0	–	0.2	–	23 .2
To l n de bt ta et	( 68 5.7 )	16. 9	( 17. 7 )	( 0.8 )	( 0.6 )	( 68 7.9 )

Analysis of total net debt:

Ne de bt lu d ing PP P n de bt t t exc on -re cou rse ne	( 61 6.4 )	10. 2	( 17. 7 )	0.2	( 0.6 )	( 624 .3)
de bt PP P n t on -re cou rse ne	( ) 69 .3	6.7	–	( ) 1.0	–	( 63 .6)
l n de bt To ta et	( ) 68 5.7	16. 9	( ) 17. 7	( ) 0.8	( ) 0.6	( 68 7.9 )

At 30 September 2023, the balance of interest accrued relating to borrowings was €3.8m (2022/23: €2.0m) and was included in trade and other payables. This balance was after finance charges of €18.6m (2022/23: €13.5m) net of a cash outflow of €20.7m (2022/23: €19.4m) excluding loan fees.

Analysis of movement in total net debt

	Fir st h alf 202 3/2 4	d* Res tate Firs t ha lf 202 2/2 3	Ful l ye ar 202 2/2 3
	€m	€m	€m
Ne inc ( dec ) in h a nd h e iva len inc lu d ing h s ld f b ine d isp ls t ts t o rea se rea se cas ca s qu ca s o as par us ss osa	11 .2	( 3.4 )	0.4
Ne dec ( inc ) in bo ing nd le lia b ilit ies in lu d ing le lia b ilit ies ld f b ine d isp ls t t o rea se rea se rro w s a ase c ase so as par us ss osa	5.1	( 42 .4 )	( 3.8 )
To l ca h f low in de bt ta net s s	16 .3	( 45 .8 )	( 3.4 )
Ba nk lo d lea lia b ilit ies ire d t hro h a bu ine b ina ion t ans an se ac qu ug s ss com	–	( 33 .1 )	( 37 .7 )
Le lia b ilit ies d int dur ing he io d ter t ase en e o per	( 18. 7)	( 16. 7 )	( 57 .4 )
lia b ilit ies lle d dur ing he io d Le t ase ca nce per	–	0.7	5.4
Ca ita lisa ion f lo fee t p o an s	2.6	–	0.3
isa ion f lo fee Am ort t o an s	( 1.6 )	( ) 0.6	( ) 1.0
han ( los ) g in Ex c ge s a	( 0.8 )	2.4	2.6
in Mo ent t d ebt vem ne	( 2.2 )	( 93 .1 )	( 91 .2 )
inn ing of rio To tal t d ebt at be d ne g pe	( 68 ) 5.7	( 594 ) .5	( 594 ) .5
f p eri To tal t d ebt at d o od ne en	( 68 7.9 )	( 68 7.6 )	( 68 ) 5.7

*The lease liabilities comparatives have been restated due to a prior period adjustment as explained in note 2 Basis of preparation.

12.Acquisitions and Disposals

Acquisitions

There are no current period acquisitions.

In the prior period, the Netherlands Commercial division acquired 100% of the share capital of GMP Exploitatie B.V. and its subsidiaries (subsequently renamed Renewi Westpoort Holding B.V.) for a cash consideration of €53.5m. The asset identification and fair value allocation processes were finalised in the year ended 31 March 2023 and resulted in a final fair value of the net identifiable assets acquired of €36.4m with resultant goodwill arising on acquisition of €17.1m. In addition, the division completed a business assets acquisition for cash consideration of €1.6m, the fair value of net assets acquired was €1.3m resulting in €0.3m of goodwill.

Disposals

On 1 September 2023, the Netherlands Commercial division disposed of 100% of the share capital of Buro ontwerp & omgeving B.V. to GMP Groep B.V. for a cash consideration of €2.3m. The net assets of the entity sold totalled €2.3m including €1.4m of goodwill, €0.7m cash and €0.1m of lease liabilities resulting in no profit or loss on disposal.

In the prior year, the Mineralz & Water division disposed of net liabilities totalling €3.6m in relation to its North business for a cash consideration of €0.2m generating a profit on sale of €3.8m which was recorded as a non-trading and exceptional item in line with the Group's policy due to the significant value of the profit. In addition, the Specialities division sold its Maltha Hungary entity. Net liabilities of €0.8m were sold for a cash consideration net of cash sold of €0.1m which generated a profit on sale of €0.9m which was recorded in underlying EBIT.

13.Provisions

	Site tion d tora res an afte rca re €m	On ont ts ero us c rac €m	Leg al a nd ty war ran €m	Res turi truc ng €m	Oth er €m	Tot al €m
At 1 Ap ril 20 23	164 .5	14 1.9	7.5	3.0	25 .0	34 1.9
ide d in he io d Pro t per v	0.1	–	–	0.6	0.8	1.5
lea d in he io d Re t se per	–	( 0.4 )	( 1.2 )	( 0.3 )	( 0.8 )	( 2.7 )
Fin har ind ing f d isc t anc e c ges un w o oun –	1.9	2.5	–	–	0.1	4.5
Ut ilis d in he io d t e per	( 2.6 )	( 7.1 )	( 0.2 )	( 0.7 )	( 1.1 )	( 11. 7 )
ion l im f in in d isc (n ) Ex 5 t t o t ra tes ote cep a pac cre ase oun	( 4) 10.	( ) 6.7	–	–	–	( 1) 17.
Ex han han rat c ge e c ges	0.1	1.9	–	–	–	2.0
At 30 Se be r 2 023 tem p	153 .6	132 .1	6.1	2.6	24 .0	31 8.4
W ith in on e y ear	10 .1	18 .2	2.6	2.6	4.8	38 .3
fiv Be tw nd een on e a e y ear s	42 .2	65 .7	0.5	–	6.3	114 .7
Be fiv nd tw te een e a n y ear s	55 .4	28 .6	0.5	–	3.2	87 .7
Ov ten er ye ars	45 .9	19 .6	2.5	–	9.7	77 .7

At 30 Se r 2 023 tem be p	153 .6	132 .1	6.1	2.6	24 .0	31 8.4
W it hin on e y ear	11. 3	18. 9	4.0	3.0	6.5	43 .7
nd fiv Be tw een on e a e y ear s	40 .6	62 .3	0.4	–	6.0	109 .3
fiv nd Be tw ten een e a ye ars	61 .9	32 .8	0.5	–	3.3	98 .5
Ov ten er ye ars	50 .7	27 .9	2.6	–	9.2	90 .4
At 31 h 2 02 3 M arc	164 .5	14 1.9	7.5	3.0	25 .0	34 1.9

Discount rates

The landfill provisions are principally located in the Netherlands and Belgium. The discount rate is calculated with reference to German Government bond yields as an appropriate Eurozone country primarily due to their higher degree of liquidity compared to Dutch and Belgian Government bonds. The onerous contract provisions are principally in the UK and the discount rate is calculated with reference to UK Government bond yields. In determining the discount rate, consideration is also given to the timing of future cash flows. The cash flows used to determine the outstanding provision are risk adjusted and include annual inflation so there is no risk adjustment included within the nominal discount rate. In all cases, the final determination of rates used has taken into consideration average bond yields over the last 10 and 20 years and the market bond yields at 30 September 2023.

The table below sets out the range of nominal discount rates used for the significant provisions:

	At 30 Sep ber tem 202 3 %	At 31 rch Ma 202 3 %	At 30 Sep ber tem 202 2 %
nd fill is ion in he her lan ds d B lg ium La Ne t t pr ov s an e	2.7 o 3 .00 5 t	2.2 0 t o 2 .30	3.0 0
nd fill is ion in he La UK t pr ov s	4.4 5 t o 5 .00	3.4 0	4.0 0
is ion in he On UK tra ct p t ero us con rov s	4.3 0 t o 4 .75	3.2 5 t o 3 .75	4.0 0

Site restoration and aftercare

The site restoration provisions relate to the cost of final capping and covering of the landfill and mineral extraction sites. These site restoration costs are expected to be paid over a period of up to 28 years from the balance sheet date. Aftercare provisions cover post-closure costs of landfill sites which include such items as monitoring, gas and leachate management and licensing. For aftercare provisions relating to Dutch landfill sites where the province administers and controls the aftercare fund, payments are made to the province at predetermined dates over a period of up to 9 years. Where the Group is responsible for the aftercare the dates of payments of these aftercare costs are uncertain but are anticipated to be over a period of at least 30 years from closure of the relevant landfill site. All site restoration and aftercare costs have been estimated by management based on current best practice and technology available and may be impacted by a number of factors including changes in legislation and technology.

Onerous contracts

Onerous contract provisions arise when the unavoidable costs of meeting contractual obligations exceed the cash flows expected. They are provided for at the lower of the net present value of either exiting the contracts or fulfilling our obligations under the contracts. The provisions have been calculated on the best estimate of likely future cash flows over the contract term based on the latest projections including assumptions on inflationary increases, tonnage inputs, off-take availability and recyclates pricing. The provisions are to be utilised over the period of the contracts to which they relate with the latest date being 2040.

Legal and warranty

Legal and warranty provisions relate to legal claims, warranties and indemnities. Under the terms of the agreements for the disposal of certain businesses, the Group has given a number of warranties and indemnities to the purchasers which may give rise to payments. The Group has a liability until the end of the contractual terms in the agreements. The Group considers each warranty provision based on the nature of the business disposed of and the type of warranties provided with judgement used to determine the most likely obligation.

Restructuring

The restructuring provision primarily relates to redundancy and related costs incurred as a result of restructuring initiatives. As at 30 September 2023 the provision is expected to be spent in the following twelve months as affected employees leave the business.

Other

Other provisions includes dilapidations of €10.3m (March 2023: €10.9m), long-service employee awards of €6.2m (March 2023: €6.0m) and other environmental liabilities of €7.5m (March 2023: €8.1m). The dilapidations provisions are determined on a site by site basis using internal expertise and experience and are calculated as the most likely cash outflow at the end of the contracted obligation. The provisions will be utilised over the period up to 2073.

14.Defined benefit pension schemes

The Group has the legacy Shanks UK defined benefit scheme which provides pension benefits for pensioners, deferred members and eligible UK employees which is closed to new entrants and to future benefit accrual. In addition, there are a number of defined benefit pension schemes eligible for certain employees in both the Netherlands and Belgium.

The amounts recognised in the Income Statement were as follows:

	Fir st h alf 202 3/2 4 €m	Firs t ha lf 202 2/2 3 €m
Cu ice nt st rre ser v co	0.7	0.9
har ( inc ) o hem lia b ilit ies Int st c et ere ge om e n s c e n	0.1	( 0.1 )
Ne t d efi d b efi sio ch ch e b efo t p tax ne en en n s em es arg re	0.8	0.8

The amounts recognised in the balance sheet were as follows:

	30 Sep tem ber 202 3 €m	ber 30 Sep tem 202 2 €m	rch 31 Ma 202 3 €m
Pre lue f d fin d ben fit b lig ion t v at sen a o e e e o s	( 187 .1)	( 188 .5 )	( 20 1.1 )
Fa ir v lue f p lan set a o as s	175 .2	188 .4	19 1.8
De fin d ben fit ion hem de fic it net e e pen s sc es	( 11. 9)	( 0.1 )	( 9.3 )

Re lat d de fer d t et e re ax ass	3.0	–	2.4
Ne t d efi d p sio ch lia bil ity ne en n s em es	( 8.9 )	( ) 0.1	( ) 6.9
C las ifie d a s s:
fin d ben fit hem lus inc lu de d in De ent set e e sc e s urp no n-c urr as s –	–	4.5	–
De fin d ben fit ion hem de fic it – inc lu de d in lia b ilit ies ent e e pen s sc es no n-c urr	( 11. 9)	( 4.6 )	( 9.3 )
fin fit nsi fic it De ed be he et de ne pe on sc me s n	( 11. 9)	( 0.1 )	( 9.3 )

The legacy Shanks UK defined benefit scheme deficit increased by €2.6m from €4.3m at 31 March 2023 to €6.9m at 30 September 2023. The scheme liabilities reduced due to an increase in the discount rate assumption from 4.9% at 31 March 2023 to 5.50% at 30 September 2023 however asset values decreased as a result of lower than anticipated returns. The deficit for the overseas defined benefit schemes was unchanged from a liability of €5.0m at 31 March 2023.

15.Financial instruments at fair value

The Group uses the following hierarchy of valuation techniques to determine the fair value of financial instruments:

• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
• Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly
• Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data

During the period ended 30 September 2023, there were no transfers between level 1 and level 2 fair value measurements and no transfers into or out of level 3.

Valuation techniques used to derive level 2 fair values:

• Unlisted non-current investments comprise unconsolidated companies where the fair value approximates the book value
• Short-term investment valuations are provided by the fund manager

• Derivative financial instruments are determined by discounting the future cash flows using the applicable period-end yield curve

• The fair value of the fixed interest rate bank loans and private placements are determined by discounting the future cash flows using the applicable period-end yield curve

• The fair value of retail bonds is based on indicative market pricing

The table below presents the level 2 fair values of the Group's relevant assets and liabilities. The carrying value of bank loans, private placements and retail bonds are held at amortised cost with all other items in the table held at fair value. The Group considers that the fair value of all other financial assets and financial liabilities are not materially different to their carrying value.

	30 Sep ber tem 202 3 €m	30 Sep ber tem 202 2 €m	31 Ma rch 202 3 €m
As set s
list d n inv Un nt est nts e on -cu rre me	4.6	4.6	4.6
ho in S rt-t tm ent erm ves s	10 .9	10. 7	10. 9
riv ive fin ia l in De at stru nts anc me	6.5	8.7	1.6
	22 .0	24 .0	17. 1
Lia bil itie s
riv ive fin ia l in De at stru nts anc me	0.5	0.9	4.5
nk lo d p riv lac fix d int Ba ate ent st r ate ans an p em s – e ere s	109 .4	24 .8	110 .6
il b ds Re ta on	194 .5	195 .6	196 .5
	30 4.4	22 1.3	31 1.6

16.Contingent liabilities

Since 2017 ATM has faced challenges in the offtake of thermally treated soil. There are discussions ongoing on the application of thermally cleaned soil in certain areas in the Netherlands and it cannot be ruled out that this could result in liability for damages resulting from third-party claims in the future.

All sites need to operate in alignment with the related permits and when new regulatory requirements come into force, the Group may need to undertake additional expenditure to align to new standards. No account is taken of any potential changes until the new obligations are fully defined and enforceable.

Due to the nature of the industry in which the business operates, from time to time the Group is made aware of claims or litigation arising in the ordinary course of the Group's business. Provision is made for the Directors' best estimate of all known claims and all such legal actions in progress. The Group takes legal advice as to the likelihood of success of claims and actions and no provision is made where the Directors consider, based on that advice, that the action is unlikely to succeed or a sufficiently reliable estimate of the potential obligation cannot be made. None of these other matters are expected to have a material impact.

Under the terms of sale agreements, the Group has given a number of indemnities and warranties relating to businesses sold in prior periods. Different warranty periods are in existence and it is assumed that these will expire within 15 years. Based on management's assessment of the most likely outcome appropriate warranty provisions are held.

17.Related party transactions

The Group's significant related party transactions remain as disclosed in note 8.2 of the 2023 Annual Report and Accounts. There were no material differences in related parties or related party transactions in the interim period compared to the prior year.

18.Alternative performance measures (APMs) and reconciliations

In accordance with the Guidelines on APMs issued by the European Securities and Markets Authority, additional information is provided on the APMs used by the Group below. The Directors use APMs as they believe these measures provide additional useful information on the underlying trends, performance and position of the Group. These measures are used for internal performance analysis. These terms are not defined terms under IFRS and may therefore not be comparable with similarly titled measures used by other companies. These measures are not intended to be a substitute for, or superior to, IFRS measurements. There have been no changes in approach.

Fin cia l M an eas ur e	efi it Ho e d w w ne	it W hy w e u se
Un de rly ing EB IT	Op ing fit lu d ing d ing d e ion l it hic h a de fin d in 5 t n-t t te era pr o exc no ra an xce p a em s w re e no	Pro ide ins ig ht int fit ion d is t he d by t v s o p ro gen era an me asu re use ke dec is ion it p ide iste d ent to ma nag em m a s a s rov s c on s ncy an b ilit f t he ing rfo bet io ds com par a y o ong o pe rm anc e we en per
Un de rly ing EB IT in m arg	Un der ly ing EB IT f re ent as a p erc age o ven ue	Pro ide ins ig ht int in dev lop d nd nt tre v s o m arg e me an s
Un de rly ing EB IT DA	der ly ing be for dep iat ion isa ion d im irm f p lan d Un EB IT ort t ent ert t an e rec , am an pa o rop y, p ipm ig ht- f-u int ib le a nd in fit los n d isp l ent ets ts a tm ent equ , r o se ass ang sse ves s, p ro or s o osa , f p lan d e ipm int ib le d s bs id iar ies ert t an ent ets o rop p qu ang ass an y, u ,	f e ing nd h g ion ion l Me rat to at asu re o arn s a ca s ene as ses s o per a for per ma nce
Un de rly ing ofi t b efo tax pr re	fit be for lu d ing d ing d e ion l it Pro e ta n-t t x e xc no ra an xce p a em s	ilit nd ly ing rfo lua ion Fa ate t c s u er pe rm anc e e va
Un de rly ing EP S	Ea rni har lu d ing d ing d e ion l it n-t t ng s p er s e e xc no ra an xce p a em s	Fa ilit nd ly ing rfo lua ion ate t c s u er pe rm anc e e va
Un de rly ing ef fec tiv e t rat ax e	Th ffe ive der ly ing fit be for ct tax te e ta e e ra on un pr o x	ide b le ba is t lys he Pro e t tax te s a m ore co mp ara s o a na ra v
Re ing tur rat set n o n o pe as s	La st 1 2 m hs der ly ing EB IT d iv ide d by 13- h a f n lu d ing ont nt et a ts e un a mo ver age o sse xc de bt, IF RS 16 le lia b ilit ies der iva ive ba lan dw ill d a is it ion et t tax cor e n ase s, ces , go o an cqu , lat d int ib les re e ang	Pro ide f t he he Div is ion nd ret set t v s a m eas ure o urn on as s a cro ss s a he Gr lu d ing dw ill d a is it ion lat d int ib le t oup ex c go o an cqu re e ang ba lan ces
ita Po st- tax tur l em loy ed re n o n c ap p	st 1 2 m hs der ly ing d jus d by he Gr 's e ffe ive d iv ide d by La EB IT ont te t ct tax te un as a oup ra a 1 3-m h a f n lu d ing de bt, IF RS 16 le lia b ilit ies d ont et a ts e net ver age o sse xc co re ase an der iva ive t s	ide f t he Gr kin int Pro tur ts t s a m eas ure o oup re n o n a sse a g o v he dw ill d a is it ion lat d int ib le ba lan t t acc oun go o an cqu re e ang ces
Ad jus ted fr h f low ee cas	h g d fro ing iv it ies in lu d ing in d r lac Ne t c rat t t ter est tax ent as ene e m op era ac c an ep em , ita l sp d a nd lu d ing h f low fro d ing d e ion l it Co id- 19 n-t t cap en ex c ca s s m no ra an xce p a em s, v	f c h g ion in he der ly ing bu ine ila b le t Me rat t asu re o as ene un s ss ava o fun d g h c ita l p jec nd in in is it ion las ify s. W t ts a t row ap ro ves acq u e c s

	de fer l p lem f h isto ric AT il l ia b ilit ies d c h f low lat ing M tax ent ett ent ra aym s, s o so an as s re he fu nd de fin d ben fit ion hem lso UK PP P c Pay to t ont ts. nts to rac me e e pen s sc es are a lu de d a hes hem los d t bo h n ber nd ing l an d s t t exc e s c es are no w c e o ew m em s a on go ac cru a h r lat hi ric lia b ilit ies . T he Mu nic ipa l co h f low lu de d e to sto ntr act as suc e ca s s a re exc bec hey inc ipa lly lat d in ion l c har in e t e to tra cts rte t aus pr re on ero us con as re po exc ep a ges he nd d by dv ket nd it ion ide ifie d a he inc ion f t he t st a ot nt t t t use ers e m ep pa ca a ar co s n o tra ct con	ita l sp d int l re lac d itu d g h ent t our ca p en o g ene ra p em ex pen re an row ita l p jec ts cap ro
No rad ing d e tio l n-t an xce p na h f low ite cas ms	Re i 2 .0 a nd her ion l ca h f low d in h f low fro ing ot t te t new ex cep a s s a re pre sen cas s m op era iv it ies d a inc lu de d in he rie in 5, n f o ing d c los ing Ba lan act t cat te et o an re ego s no pen an ce hee it ion S t p os s	Pro ide fu l in for ion d ing d e ion l ca h t n-t t v s u se ma on no ra an xce p a s flo nd w spe
Fr h f low ee cas	Ne h g d fro ing iv it ies inc ipa lly in lu d ing in d t c rat t t ter est tax as ene e m op era ac pr c an , lac ita l sp d ent rep em ca p en	Me f c h a ila b le a fte lar lac ita l ent asu re o as va r re gu re p em ca p d itu d his ic lia b ilit ies d iv ide nd fun d g h tor to t exp en re an pa y s, row ita l p jec nd in in is it ion ts a t cap ro ves acq u s
h f /EB DA ion Fr low IT ee cas co nv ers	Th io f fr h f low der ly ing A EB ITD at to e r o ee cas un	ide nd d ing f h fits in h Pro tan ert to v s a n u ers o ow pr o co nv cas
Gr th ita l ow cap end itu exp re	h c ita l p jec hic h i lu de he inn ion fo lio d o her lar ic Gr t ts w t at rt t stra teg ow ap ro nc ov po an ge inv est nts me	ide nd d ing f h h i be ing he Pro tan ent to t v s a n u ers o ow ca s s sp gr ow bu ine s ss
To tal sh flo ca w	To l ca h f low is he in de bt lu d ing lo fee ita lisa ion d ta t ent t t s mo vem ne exc an ca p an isa ion han in PP P c h a nd PP P n de bt, ort t ent ent am , ex c ge mo vem s, m ov em as on -re cou rse d d it ion le lia b ilit ies d lea lia b ilit ies ire d t hro h a bu ine IF RS 16 s to a ase an se ac qu ug s ss b ina ion t com	Pro ide nd d ing f to l ca h f low f t he Gr tan ta v s a n u ers o s o oup
Fin cia l M an eas ur e	Ho e d efi it w w ne	W hy it w e u se
Co h re cas	h e lu des h a nd h e iva len lat ing Co U K P PP ts r to ntr act re cas xc ca s ca s qu e co s	Th h r lat ing is n fre ly ila b le t he U K P PP to ntr act ot o t e c as e co s e ava Gr d is e lu de d fro fin ia l co lcu lat ion f t he ant oup an xc m anc ven ca s o in lt icu fin fac ilit her for lu d ing his t t ma mu rre ncy gr een anc e e e e xc y ive ita b le m f c h f he Gr t g s a su eas ure o as or oup
Co net de bt re	de bt inc lu des h a nd lu des de bt lat ing he d Co UK PP P c net to t tra cts re co re cas ex c re on an lea lia b ilit ies lt o f IF RS 16 se as a r esu	Th bo ing lat ing he UK PP P c to t tra cts e rro s re on ar e n on -re cou rse w he d e lu d ing hes ive ita b le m f Gr to t t oup an xc e g s a su eas ure o ind bte dn fo he Gr RS 16 le lia b ilit ies lu de d . IF r t e ess oup ase ar e e xc fin ia l co he in lt icu fin ant n t as anc ven s o ma mu rre ncy gr een anc e fac ilit in fro GA AP ba is y r em a on a zen s
Liq uid ity	Liq id ity he dro in lu des h a nd dra itte d a he ts o n t a om c co re cas un wn co mm mo un u lt icu fin fac ilit nd he nk fac ilit Eu In Ba t tm ent mu rre ncy gr een anc e y a rop ean ves y	ide nd d ing f a ila b le hea dro he Gr Pro tan to t s a n u ers o va om oup v
Ne t d ebt EB IT DA /le ati to ver ag e r o	Th is is t he key he ban kin ilit ies hic h i lcu lat d llo ing f t Gr 's fac fo ant co ven o oup g w s c a e w an d m ho do log he fro ia l v lat ilit d by ing Gr et to tec t t ten t nt agr ee y pro oup m po o y c aus e ac cou nd d c han d den in han d e ion l it de bt s. N sta ent rat t et ar ges , su m ov em s exc ge es an xce p a em d E A d o fro GA AP ba is w it h t he in im f t his be ing BI TD t o an are m eas ure n a zen s ma pac	ly d m f fi ia l le d c iste it h Co nt mm on use eas ure o nan c ver age an on s w de fin it ion nt cov ena

the exclusion of IFRS 16 lease liabilities. Exceptional items are excluded from EBITDA and cash and debt relating to UK PPP contracts are excluded from net debt. Net debt and EBITDA are translated to Euros using average exchange rates for the period. Covenant ratios are measured half yearly on a rolling 12-month basis at March and September

Reconciliation of operating profit to underlying EBITDA

	Net her lan ds Co ial mm erc	ium Bel g Co ial mm erc	Mi alz & ner		Gr oup tra l cen
Fir st h alf 20 23/ 24	Wa ste €m	Wa ste €m	Wa ter €m	Spe cial itie s €m	vic ser es €m	Tot al €m
Op ing fit ( los ) t era pr o s	25 .7	24 .1	9.5	17. 0	( 12. 2)	64 .1
No d ing d e ion l it (ex lu d ing fin item ) n-t t ra an xce p a em s c anc e s	0.1	0.4	( 8.0 )	( 6.7 )	0.8	( 13. 4)
der ly ing Un EB IT	25 .8	24 .5	1.5	10. 3	( 4) 11.	50 .7
De iat ion d im irm f p lan d e ipm d r ig ht- f-u ent ert t an ent ets pre c an pa o rop y, p qu an o se ass	29 .0	15. 7	8.3	4.3	3.2	60 .5
Am isa ion d im irm f in ib le a (ex lu d ing is it ion lat d ort t ent tan ts an pa o g sse c ac qu re e int ib les ) ang	0.5	–	0.4	0.1	2.3	3.3
No ion l (g in) lo d isp l o f p lan d e ipm d t ert t an ent n-e xce p a a ss on osa rop y, p qu an int ib le a ts ang sse	( 0.6 )	( 0.4 )	–	0.1	–	( 0.9 )
Un de rly ing EB IT DA	54 .7	39 .8	10 .2	14 .8	( 5.9 )	113 .6

	Net her lan ds Com rcia l me	Bel ium g Com rcia l me	Min lz & era		Gro up tral cen
Fir ha lf 2 022 /23 st	Wa ste €m	Wa ste €m	Wa ter €m	cial itie Spe s €m	ices serv €m	al Tot €m
ing fit ( los ) Op t era pr o s	40 .3	28 .2	11. 0	10. 5	( ) 6.4	83 .6
d ing d e ion l it (ex lu d ing fin item ) No n-t t ra an xce p a em s c anc e s	–	( ) 0.1	( ) 8.4	0.8	( ) 0.7	( ) 8.4
der ly ing Un EB IT	40 .3	28 .1	2.6	11. 3	( 7.1 )	.2 75
iat ion d im irm f p lan d e ipm d r ig ht- f-u De ent ert t an ent ets pre c an pa o rop y, p qu an o se ass	26 .6	14. 8	8.6	3.8	3.0	56 .8
isa ion d im irm f in ib le a (ex lu d ing is it ion lat d Am ort t ent tan ts an pa o g sse c ac qu re e int ib les ) ang	0.4	–	0.4	0.1	1.6	2.5

No ion l g in d isp l o f p lan d e ipm int ib le a t ert t an ent ts n-e xce p a a on osa rop y, p qu ang sse , d s bs id iar ies an u	( ) 1.6	( ) 0.1	–	( ) 0.9	–	( ) 2.6
der ly ing Un EB ITD A	65 .7	42 .8	11. 6	14. 3	( ) 2.5	13 1.9

Calculation of return on operating assets

	her lan ds Net	Bel ium g		cial itie Spe s
	Com rcia l me	Com rcia l me	Min lz & era	lud ing UK exc
	Wa ste	Wa ste	Wa ter	Mu nic ipa l	Gro up
Fir alf 20 23/ 24 st h	€m	€m	€m	€m	€m
Un der ly ing EB IT ( 12 hs 30 Sep ber 20 23 ) nt to tem mo	62 .4	48 .8	( 0.6 )	16 .1	108 .4
13 h a f o ing nt at set mo ver age o per as s	43 2.7	14 1.7	64 .1	51 .3	41 0.5
ing Re tur rat set n o n o pe as s	14 .4%	34 .4%	-0. 9%	31 .5%	26 .4%
Fir ha lf 2 022 /23 st
der ly ing ( 12 hs 30 Sep ber 20 22 ) Un EB IT nt to tem mo	90 .2	49 .2	4.4	14. 5	144 .1
13 h a f o ing nt at set mo ver age o per as s	37 0.4	95 .2	60 .7	40 .6	322 .1
ing Re tur at set per n o n o as s	24 .3%	51 .8%	7.3 %	35 .8%	44 .7%

Calculation of post-tax return on capital employed

	Sep ber tem 202 3 €m	Sep ber tem 202 2 €m
Op ing fit for 12 hs Sep ber t t to tem era pr o m on	10 1.9	150 .2
d ing d e ion l it in ing fit for hs ber No 12 Sep n-t t t ont to tem ra an xce p a em s op era pr o m	6.5	( 6.1 )
der ly ing for 12 hs Sep ber Un EB IT ont to tem m	108 .4	144 .1
ffe ive ( 20 23 /24 : 27 .0% 20 22/ 23 : 26 .5% ) Ta t e ct te x a ra ,	( 29 .4)	( 38 .2 )
Po der ly ing EB IT for 12 hs Sep ber st t ont to tem ax un m	79 .0	105 .9

h a f c ita l em loy d 13 nt mo ver age o ap p e	97 5.5	867 .5
--------------------------------------------------------------------------------------------	-----------	-----------

ita Po st- tax tur l em loy ed re n o n c ap p	8.1 %	12. 2%

Reconciliation of statutory profit before tax to underlying profit before tax

	Fir alf st h 202 3/2 4 €m	Firs t ha lf 2/2 202 3 €m
Sta ofi t b efo tut tax ory pr re	45 .4	71 .6
d ing d e ion l it in ing fit No n-t t t ra an xce p a em s op era pr o	( 13. 4)	( ) 8.4
No d ing d e ion l fi inc n-t t ra an xce p a nan ce om e	( 0.7 )	( 1.6 )
Un de rly ing ofi t b efo tax pr re	31 .3	61 .6

Reconciliation of adjusted free cash flow and free cash flow as presented in the Finance review

	Fir alf st h 202 3/2 4 €m	Res d* tate Firs t ha lf 2/2 202 3 €m
Ne ash ed fro tin cti vit ies t c rat ge ne m op era g a	88 .8	74 .0
Inc lu de fin har d loa n f id anc e c ges an ees pa	( 23 .3)	( 19. 4)
Inc lu de fin inc ive d anc e om e r ece	5.5	5.3
Inc lu de f o b lig ion nd lea lia b ilit ies ent at rep aym o s u er se	( 25 .4)	( 22 .8 )
lu de has f re lac ite f in ib le a Inc ent tan ts pu rc es o p em ms o g sse	( 10. 3)	( 6.1 )
lu de has f re lac ite f p lan d e ipm Inc ent ert t an ent pu rc es o p em ms o rop y, p qu	( 34 .4)	( 33 .6 )
lu de ds fro d isp ls o f p lan ipm Inc t & ert ent pro cee m osa rop p eq y, u	3.3	4.7
lu de ita l re ive d in f P fin ia l a f o flo Inc PP t o t n et o ut cap ce res pec anc sse ws	2.7	2.9
lu de f U ic ipa l co de bt Inc K M s P PP ent ntr act rep aym o un	( 2.7 )	( ) 5.4
Inc lu de in U K M ic ipa l co s P PP h ent ntr act mo vem un ca s	( 4.0 )	0.5
Inc lu de inv in har by he Em loy S har e T est nt t t me ow n s es p ee rus	( 1.7 )	( 3.5 )

Inc lu de in iat d jo int net ent ntu m ov em s ass oc es an ve res	( 0.1 )	( 1.0 )
Fr h f low ee cas	( 1.6 )	( ) 4.4
lu de de fer d C id id Ex tax c re ov es pa	9.7	9.9
Ex lu de ffta ke f A TM il c o o so	1.0	1.1
Ex lu de UK M ic ipa l co ntr act c un s	9.8	7.1
Ex lu de d ing d e ion l p is ion nd kin ita l n-t t c no ra an xce p a rov s a w or g c ap	1.6	2.2
lu de fu nd de fin d ben fit ion hem Ex nts to c pay me e e pen s sc es	1.8	1.8
Ex lu de inv in har by he Em loy S har e T est nt t t c me ow n s es p ee rus	1.7	3.5
lu de in iat d jo int Ex net ent ntu c m ov em s ass oc es an ve res	0.1	1.0
Ad jus ted fr h f low ee cas	24 .1	22 .2

*The comparatives have been restated due to a prior year adjustment as explained in note 2 Basis of preparation.

Reconciliation of net capital spend in the Finance review to purchases and disposal proceeds of property, plant and equipment and intangible assets within Investing activities in the consolidated Statement of Cash Flows

	Fir st h alf 202 3/2 4 €m	Firs t ha lf 202 2/2 3 €m
has f in ib le a Pu tan ts rc es o g sse	( 10. 3)	( 6.1 )
has f re lac lan d e ipm Pu ent ert t an ent rc es o p em pr op y, p qu	( 34 .4)	( 33 .6 )
d fro d isp ls o f p lan d e ipm Pro ert t an ent cee m osa rop y, p qu	3.3	4.7
lac ita l ex d itu Ne t re ent p em ca p pen re	( 41 .4)	( 35 .0 )
Gr h c ita l ex d itu t ow ap pen re	( 15. 9)	( 16. 0 )
To tal ita l sp d a ho in th ash flo w i he Fin iew n t ca p en s s wn e c an ce rev	( 57 .3)	( 51 .0 )
	Fir st h alf 202 3/2 4 €m	Firs t ha lf 202 2/2 3 €m

Pu has f in ib le a tan ts rc es o g sse	( 10. 3)	( 6.1 )
Pu has f p lan d e ipm (re lac d g h) ert t an ent ent t rc es o rop y, p qu p em an row	( 50 .3)	( 49 .6 )
Pro d fro d isp ls o f p lan d e ipm ert t an ent cee m osa rop y, p qu	3.3	4.7
Pu rch nd di sal ed f p lan nd uip d i ibl ith in Inv ing tiv itie s in th sol ida ted St of ert t a nt nta ts w est ate nt ase s a spo pr oce s o rop y, p eq me an ng e a sse ac e c on me Ca sh Flo ws	( 57 .3)	( 51 .0 )

Reconciliation of property, plant and equipment additions to replacement capital expenditure as presented in the Finance review

	Fir st h alf 202 3/2 4 €m	Firs t ha lf 202 2/2 3 €m
Pro lan d e ipm d d it ion (no 10 ) ty, t an ent te per p qu a s	( 38 .5)	( 44 .3 )
ib le a d d it ion (no 10 ) Int t a te ang sse s	( 10. 0)	( 4.5 )
ds fro d isp ls o f p lan d e ipm Pro ert t an ent cee m osa rop p qu y,	3.3	4.7
in ita l cr d ito ( inc lu de d in de d o her b les ) Mo ent tra t vem ca p e rs an pa ya	( 12. 1)	( ) 6.9
h c ita l ex d itu d isc los d in he Fin iew Gr t t ow ap pen re as e anc e r ev –	15 .9	16. 0
ita itu ina evi Re lac ent l ex nd r F p em ca p pe re pe nc e r ew	( 41 .4)	( 35 .0 )

Reconciliation of total cash flow as presented in the Finance review to the movement in total net debt

	Fir alf st h 202 3/2 4 €m	Res d* tate Firs t ha lf 2/2 202 3 €m
To tal sh flo ca w	( 15. 9)	( ) 80 .5
Ad d it ion le lia b ilit ies f c lle d lea lia b ilit ies s to t o ase ne anc e se	( 18. 7)	( ) 16. 0
Re f o b lig ion nd lea lia b ilit ies nt at pay me o s u er se	25 .4	22 .8
Le lia b ilit ies d isp d o f ase ose	0.1	–
Le lia b ilit ies ire d t ho h a bu ine b ina ion t ase ac qu ug s ss com	–	( 26 .1 )
in de bt Mo PP P n ent vem on -re cou rse	2.7	5.4

Mo in PP P c h a nd h e iva len ent ts vem as ca s qu	4.0	( 0.5 )
Ca ita lisa ion f lo fee f am isa ion t et o ort t p o an s n	1.0	( 0.6 )
Ex han ent c ge mo vem s	( 0.8 )	2.4
Mo in tal t d ebt (n 11 ) ent to ote vem ne	( 2.2 )	( 93 .1 )
*Th ativ hav e b ted du rio dju lain ed in n asi f pr ion sta e to stm ent ote 2 B rat e c om par es een re a p r ye ar a as exp s o epa

Reconciliation of total cash flow as presented in the Finance review to the movement in cash

	Fir st h alf 202 3/2 4 €m	Firs t ha lf 202 2/2 3 €m
flo To tal sh ca w	( 15. 9)	( 80 ) .5
f re il b ds Re nt ta pay me o on	–	( ) 100 .0
Pro ds fro ban k b ing cee m orr ow s	189 .7	30 3.2
Re f b k b ing nt pay me o an orr ow s	( 166 .6)	( 132 .6 )
Ba nk lo ire d t hro h b ine b ina ion t an acq u ug us ss com	–	7.0
Mo in PP P c h a nd h e iva len ent ts vem as ca s qu	4.0	( 0.5 )
han Ex ent c ge mo vem s	0.5	( 1.3 )
Mo in tal sh ent to vem ca	11 .7	( 4.7 )

Reconciliation of total net debt to net debt under covenant definition

	30 Sep tem ber 202 3 €m	Res d* tate 30 Sep ber tem 202 2 €m	31 rch Ma 202 3 €m
To tal t d ebt ne	( 68 7.9 )	( ) 68 7.6	( ) 68 5.7
Ex lu de PP P n de bt c on -re cou rse	86 .8	91 .3	88 .3
Ex lu de PP P c h a nd h e iva len ts c as ca s qu	( 23 .2)	( 19. 7 )	( 19. 0 )
Ex lu de IFR S 1 6 lea lia b ilit ies c se	24 1.1	22 8.3	24 5.8

Ne t d ebt un	de r c ov en an	efi nit ion t d						( 38 3.2 )	( 38 ) 7.7	( 37 0.6 )

*The comparatives have been restated due to a prior year adjustment as explained in note 2 Basis of preparation.

INDEPENDENT REVIEW REPORT TO RENEWI PLC

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2023 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2023 which comprises the Consolidated Interim Income Statement, the Consolidated Interim Statement of Comprehensive Income, the Consolidated Interim Balance Sheet, the Consolidated Statement of Changes in Equity and the Consolidated Interim Statement of Cash Flows and the related notes 1 to 18.

Basis for conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in note 2, the annual financial statements of the group are prepared in accordance with UK adopted international accounting standards. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, "Interim Financial Reporting".

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410, however future events or conditions may cause the group to cease to continue as a going concern.

Responsibilities of directors

The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

In preparing the half-yearly financial report, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the review of the financial information

In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statement in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

Use of our report

Our report has been prepared in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability.

BDO LLP Chartered Accountants London, UK 8 November 2023

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group.

The issuer is solely responsible for the content of this announcement.

I S I N :	G B 0 0 B N R 4 T 8 6 8
d C C t a e g o r y o e :	R I
T I D M :	R W I
d L E I C o e :	2 1 3 8 0 0 C N E I D Z B L 1 7 K U 2 2
S N e q u e n c e o. :	2 8 3 6 4 0
E Q S N I D e s w :	1 7 6 8 5 5 3

End of Announcement

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