Iren — Investor Presentation 2021

Nov 11, 2021

INVESTOR DAY IREN

Strategy

Action Plan

Financials

Closing Remarks

Strategy

Action Plan

Financials

Closing Remarks

Strategy review with stronger commitment on decarbonization

Higher investment intensity boosting growth in sustainable, low risk activities

Investment grade commitment confirmed combining growth with financial discipline

INVESTOR DAY 2021

Strategy

Action

Plan

Financials

Closing

Remarks

CIRCULAR ECONOMY

Energy efficiency and electrification

Acceleration of ecological transition investments

ENERGY EFFICIENCY

Networks upgrade to excellence

Prevention of hydrogeological instability

PROTECTION OF NATURAL RESOURCES

Through their own platforms, multiutilities can actively lead the ecological transition, as preferred partner for local stakeholders

… an unparalleled opportunity for multiutilities

INVESTOR DAY 2021

Leadership in green transition driving shift to sustainability

Maximum levels of service quality

across all businesses, standing out as best choice for any stakeholder

local presence

serving territories and local communities

Strategy

Action Plan

Financials

Closing Remarks

2021-2030 Strategic Plan ambition

• Progressively decarbonize all activities • Strengthen leadership in circular

• Extend footprint in legacy regions,

• Excel in networks performance

Legacy regions 85%

Quality improvement 50%

Decarbonization in all activities

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1. For agricultural and industrial use

Strategic ~1,200 2020 2030 34 2.5x

Service portfolio expansion

Provinces covered with 4+ services1

Preferred partner for cities, through service portfolio extension

Energy efficiency and public lighting

Urban renovation and infrastructure

Smart cities

E-mobility and public transport

1.6 Bn Eur investments for territories/ communities

80 PA renovation projects by 2030

7,000+ Energy Communities projects

65,000 charging stations

Action Plan

Financials

Strategy Green Local Quality

Closing Remarks

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Core services

New services

INVESTOR DAY 2021

Strategy

Action Plan

Financials

Closing Remarks

Green

Local

Quality

Insourcing of customer operations key activities

~70% of operations internally managed1

Digitalization at scale

~300 Mn Eur investments in digital platforms

Increase in local presence

+80%

new stores

Full omnichannel experience

100%

personalized journeys based on customers' characteristics

Iren Plus service platform

30% penetration on 2030 sales

1. In self/ from internal operators

Customer satisfaction boost across all businesses

• Decarbonization across businesses
• Leadership in circular economy
• Sustainable use of natural resources

Environmental

• • Diversity and inclusion
• ESG best practices dissemination and support to local communities

Social

• Top management ESG accountability
• ESG best-in-class transparency and communication

Governance

Halved carbon intensity 5x waste recovery Best-in-class water leakages reduction

30%+ women in managerial positions

Engagement of supply chain in ESG best practices

Strengthen ESG-linked variable remuneration

Boost up ESG-oriented policies (H&S, supply chain, climate change)

Partnership model for selected developments

commercial quality

Electrification of consumptions with gas supporting the transition

Focus of investments on power grid to support the energy transition...

• Electrification of consumption
• New connections (DG, e-mobility)
• Resilience and digitalization

Power grid growth drivers

… still with tactic inorganic expansion in gas through tenders (~400 Mn Eur RAB)

Network tenders allowing to consolidate local multiutilities

Enhancement of local presence

Operating synergies

Equity contribution from external partners

Strategy

2021

Development of district heating

Resilient business supported by regulation

Long term concessions lasting at least until 2031

Terminal value protection

Client tariff adjusted for commodity fluctuation

Transition to renewables

Renewables (~2.2 GW)

• Development of new RES assets, focused mainly on greenfield and brownfield repowering
• Renewal of hydro concessions, through revamping

Renewables and storage

Storage (~0.3 GW)

• Development of storage capacity, coherent with RES growth

• Divestment of thermoelectric assets (not functional to district heating) Thermoelectric planned in the 2026-30 period

Strategy

Financials

Action Plan Networks

Closing Remarks

Waste

Energy

Smart Solutions

Market

to preserve profitability

Rebalancing of acquisition and energy sales mix

green transition

the board

Raising the bar on investments

>2x last 5-year average annual investment

Immediate investment needs

Spending ramping up fast and evenly distributed across the period ( ~55% by 2026)

Robust inorganic growth

1.8 Bn Eur of spend allocated to selected M&A and new tenders

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Unleashing robust growth and significant value creation already mid-term as well as over the decade

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sound capital structure profile & metrics…

INVESTOR DAY 2021

9M 2021 – Positive results in line with future ambition

Mn Eur Strategy Action Plan Financials Closing

Remarks

EBITDA: M&A contribution (+28 Mn Eur), organic growth in regulated activities, effectiveness in tackling the energy scenario and efficiencies/ synergies CAPEX: sustained mainly by investments for new plants in the waste sector

1. EBITDA bridge representing data according to the existing segmentation

Strategy

Action Plan

Financials

Closing Remarks

Strategy review with stronger commitment on decarbonization

Higher investment intensity boosting growth in sustainable, low risk activities

Investment grade commitment confirmed combining growth with financial discipline

Dividend policy confirmed and strong short-term guidance

Dividend payout ratio

50-55%

990 Mn Eur EBITDA

Net debt / EBITDA ~3.3x

• > +6% EBITDA growth vs 2021
• Target investments > 1 Bn Eur
• Net debt/ EBITDA 3.3 3.4x

2021 guidance confirmed

2022 outlook

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