Iren — Investor Presentation 2021

Mar 25, 2021

IREN RESULTS

FY 2020

25th March 2021

2014 -2020 Economic and Financial growth

EBITDA BRIDGE (m€)

NFP/EBITDA (m€)

DPS (€c/share)

2

NFP FINANCIALS CLOSING

FY 2020 Sustainability path

CIRCULAR ECONOMY	WATER SOURCES	DECARBONIZATION	RESILIENT CITIES	PEOPLE
Acquisition and creation of new • recovery plants Extension of door-to-door • collection system • JustIren for digitalization and efficiency improvement	Division of the networks into • small and equal areas (districts) Efficiency improvement of water • treatment plants	Increase in thermal and • electricity storage Energy efficiency projects: Smart • Solutions	Extension of district heating • networks Smart metering • • Eco-mobility • Distributed photovoltaic generation	Competence enhancement and • reskilling New working modes supported • by digitalization • Diversity enhancement • People care
Waste recovered in our plants (t)	Water network leaks	Power generation carbon intensity (tCO2/GWh)	District heated volumes	Training hours per capita
Sorted waste collection	Wastewater plants capacity	Energy savings	Eco-vehicles on total fleet	Women in executive & managerial roles
3 PAST ESG ACHIEVEMENT	EBITDA NETWORKS WASTE	ENERGY MARKET	CASHFLOW & P&L FINANCIALS NFP	CLOSING ANNEXES REMARKS

FY 2020 A year of growth despite the pandemic

m€	FY '19	FY '20	Δ	Δ%
Revenues	4,275	3,725	-550	-12.8%
Ebitda	917	927	10	1.1%
Ebit	452	416	-36	-8.0%
Group net profit	236	235	-1	-0.4%
Tech. Capex	524	685	161	30.7%

• Revenues -12.8%: decrease mainly in the energy value chain caused by lower volumes and prices and strategic choices in market BU
• Ebitda +1.1%: Positive results leveraging on clients' portfolio margins normalization, organic growth and consolidation despite a difficult scenario affected by Covid for 15 m€ and a negative impact from regulation of 10m€.
• Ebit -8.0%: higher depreciations and provisions to bad debt due to the emergency partially offset by a release of a provision fund for 19m€
• Group net profit -0.4%: reduction in the cost of debt and a temporary lower tax rate
• Tech. Capex +30.7%: strong capex plan following business plan assumptions.

ACHIEVEMENT ESG

NETWORKS WASTE MARKET P&L CASHFLOW &

NFP FINANCIALS CLOSING REMARKS EBITDA ENERGY ANNEXES PAST

Organic growth & synergies exceed negative regulation NETWORKS

• • Organic growth through an increased RAB led a rise of Ebitda of 16m€
• • Positive impact of 10m€ from synergies
• • Investments are in line with last year despite Covid emergency
• • Strong acceleration in the activities of districtization, reaching 56% of the network
• Negative impact of 10m€ from regulation due to lower costs recognized in tariffs, mainly in water and gas sector

ACHIEVEMENT ESG

WASTE Ebitda up thanks to organic growth & consolidation

• • I.Blu and Unieco positive contribution for 11m€
• • Saturation of WTE plants, through the reorganization of flows
• • Increase in waste managed (+9%) compared to FY 2019
• Reduction of the contribution from landfill of 6m€, led by Covid emergency
• Lower PUN price affected the electricity sold for 6m€

ACHIEVEMENT ESG

ENERGY Reduction for opportunistic choice in hydro & lower heat margins

• • Positive ancillary services (81m€ vs 71m€ in 2019)
• • Increase of DH volumes now at 96.7mcm
• • Contribution of energy efficiency projects
• Lower hydro volumes due to an opportunistic management (~90GWh & related GC shift to '21)
• Drop in PUN achieved (-18%), in electricity clean spark spread (-17%) and in heat spark spread (-8%)
• Lower heat volumes for mild temperatures

ACHIEVEMENT ESG

7

MARKET Margins' stabilization and volatile scenario led the growth

• • Margins normalization thanks to the recovery of negative '19 scenario and commercial policy
• • 14m€ of extra return due to commodities price volatility
• • Customer base at 1.877m clients of which 23k national clients
• Lower electricity volumes mainly in SMEs and Business segment, primarily for Covid impact
• Lower gas volumes to end clients due to the mild climate
• Structural emerging costs related to our CRM systems and marketing activities

ACHIEVEMENT ESG

	FY '19*	FY '20	Δ	Δ%
EBITDA	917.3	927.3	10.0	1.1%
Depreciation	-403.6	-440.9
Provisions to bad debt	-37.2	-61.7
Other provisions and write-downs	-24.6	-8.9
EBIT	451.9	415.8	-36.1	-8.0%
Financial charges	-61.9	-68.5
Companies cons with e.m.	5.0	4.6
Other financial	-18.0	13.3
EBT	377.0	365.2	-11.8	-3.1%
Taxes	-111.5	-100.1
Minorities	-29.1	-29.8
Group net profit	236.4	235.3	-1.1	-0.4%

• Higher depreciation led by capital intensive investments and consolidation
• Release of Hydroelectric provision funds for 19m€
• Higher provisions to bad debt related to COVID emergency for 25 million euros
• Lower cost of debt counterbalance by higher debt amount and a reduction in interest income
• Capital gain on the disposal of equity investments and lower liability management costs

Temporary reduction of tax-rate, at 27.4%

NETWORKS WASTE MARKET P&L CASHFLOW &

Cash-flow and NFP FY 2020

• The cash flow generation partially offsets the growing investments
• The consolidation activities of I.Blu, Sei, NOS and Unieco led to higher debt
• NWC optimization led by reduction of tax receivables
• The third tranche of SBB program started in 4Q

ACHIEVEMENT ESG

NETWORKS WASTE MARKET P&L CASHFLOW &

• 96% of gross debt at fixed interest rate and 4% of gross debt at variable interest rate
• Average long-term debt duration of about 6.1 years vs 5.8 years in FY 2019
• Reduction in the average cost of debt (2.1% vs. 2.4% in FY 2019)
• 59% of the Iren total debt is composed of green and

assimilated instruments (45% Green Bond, 14% EIB loans)

• On 10th December Iren issued its fourth Green Bond of 300m€
• Iren is the only Italian local multiutility to have issued 4 Green Bonds for a total size of 1.8b€

MAIN FY 2020 TAKEAWAYS

• Ebitda increase despite pandemic and several positive one-offs reported last year
• Negative Covid impact on Ebitda: 15m€
• M&A activism confirmed
• Investment plan confirmed
• Dividend proposed to AGM of 9.5 €c/share (+2.7% vs 2019)

2021 EXPECTATIONS

Organic growth leveraging on further capex acceleration

Energy scenario: recovery in volumes and prices

Integration of consolidated companies

COVID impacts on:

• Ebitda impact not more than 10m€
• Net working capital around 40m€ (from 60m€ in FY2020)
• Credit losses up to 10m€

In light of the previous elements, we provide the following FY 2021 guidance

GUIDANCE ON 2021

• Ebitda: 960/970m€
• NFP/Ebitda: ̴3.4x
• Capex: ̴800m€

12

Annexes

Iren at a glance FY 2020
	REGULATED ACTIVITIES	Energy Infrastructure	Water Service	Urban Waste Collection
>7million INHABITANTS IN IREN'S 3 REFERENCE REGIONS	QUASI REGULATED ACTIVITIES	Hydroelectric Green Certificates	District Heating	Urban Waste Disposal
	UNREGULATED ACTIVITIES 2020 Data	Generation	Energy Market	Special Waste

14

ACHIEVEMENT ESG

NETWORKS WASTE MARKET P&L CASHFLOW & NFP FINANCIALS CLOSING REMARKS EBITDA ENERGY ANNEXES PAST

Ebitda breakdown by activity FY 2020

REMARKS EBITDA ENERGY ANNEXES PAST

Sustainability Ratings FY 2020

16

ACHIEVEMENT ESG

NETWORKS WASTE MARKET P&L CASHFLOW &

NFP FINANCIALS CLOSING REMARKS EBITDA ENERGY ANNEXES PAST

Business units' results FY 2020

		NETWORKS
m€	FY '19	FY '20	Δ	Δ%
Revenues	1,046	1,041	-5	0%
Ebitda	373	376	3	1%
Electricity	75	79	4	5%
Gas	89	85	-4	-4%
Water	209	212	3	1%
Ebit	198	186	-12	-6%
Gross Capex	297	294	-3	-1%

	ENERGY						MARKET
m€	FY '19	FY '20	Δ	Δ%
Revenues	1,473	1,145	-328	-22%
Ebitda	274	228	-46	-17%
Hydro&Renewables	80	56	-24	-30%
Thermo/Coge, DH	184	159	-25	-14%
Energy efficiency	10	13	3	30%
Ebit	140	111	-29	-21%
Gross Capex	67	172	105	n.s.

WASTE
m€	FY '19	FY '20	Δ	Δ%
Revenues	715	765	50	7%
Ebitda	158	173	15	9%
Collection	47	60	13	28%
Treatment & disposal	111	113	2	2%
Ebit	56	50	-6	-11%
Gross Capex	76	116	40	53%

m€	FY '19	FY '20	Δ	Δ%
Revenues	2,746	2,085	-661	-24%
Ebitda	110	147	37	33%
Electricity	35	56	21	59%
Gas&Heat	75	91	16	21%
Ebit	58	67	9	17%
Gross Capex	41	51	10	24%

REMARKS EBITDA ENERGY ANNEXES PAST

NETWORKS WASTE MARKET P&L CASHFLOW &

NFP FINANCIALS CLOSING

ACHIEVEMENT ESG

REMARKS EBITDA ENERGY ANNEXES PAST

NETWORKS WASTE MARKET P&L CASHFLOW &

NFP FINANCIALS CLOSING

• Strong capex plan in Network, mainly in water for the improvement of the infrastructure and the construction of new purification plants
• Investments in energy concerning the expansion of district heating, energy efficiency projects and the thermoelectric combined cycle
• In waste business we planned to build 8 new treatment plants and improve the quality of collection activity

• In market the capex are related to maintain the value of our clients' portfolio and increase the customer base

• 61% of investments in BP are related to Sustainable projects

• The bulk of the capex are in the multi-circle economy

Capex plan FY 2020

Actual pogress vs business plan targets FY 2020

EBITDA BRIDGE (m€)

• Growth is driven by RAB increase, improvement in service quality and synergies
• The new treatment plants will allow to close the waste cycle and to increase margins of the whole waste value chain along with the positive contribution of consolidated companies
• Widening of district heating network , increase in thermo capacity and the energy efficiency projects led the growth supported also by a recovery in energy scenario
• Expansion of the customer base and sales growth of Iren Plus products

19 ACHIEVEMENT ESG

REMARKS EBITDA ENERGY ANNEXES PAST

NETWORKS WASTE MARKET P&L CASHFLOW &

NFP FINANCIALS CLOSING

Ebitda progress by SBU FY 2020

NETWORKS EBITDA BRIDGE (m€)

WASTE EBITDA BRIDGE (m€)

• 1.3b€ of Investments to significantly increase RAB by 700m€, reaching 2.93b€ by the end of 2025
• Capex devoted to develop water purification plants, in order to complete our circular vision also in the integrated water cycle
• Further synergies will be exploited from continuous improvement in asset/workforce management system
• Participation in tenders within reference areas in which IREN is incumbent (not included in BP figures)
• Over 700m€ of capex to build new treatment plants and improve the quality of the collection activity
• +1 million tons waste treated in our plants thanks to new treatment plants (paper, plastic, wood, organic fraction, sludge)
• +4 bps, reaching more than 70%, in sorted waste collection supported by widening of door-to-door and pay-as-you-throw collection systems. Confirmation of all the currently owned concessions
• Fully consolidation of I.Blu and Unieco
• Possible participation in tenders within reference areas in which IREN is not incumbent (not included in BP figures)

NETWORKS WASTE MARKET P&L CASHFLOW &

NFP FINANCIALS CLOSING REMARKS EBITDA ENERGY ANNEXES PAST

Ebitda progress by SBU FY 2020

ENERGY EBITDA BRIDGE (m€)

MARKET EBITDA BRIDGE (m€)

• Over 1b€ of capex to expand district heating, improve the flexibility of generation plants and to sustain energy efficiency interventions
• Significant increase in thermoelectric production thanks to the new gas combined cycle Group in Turbigo.
• Launch of the capacity market
• Extension of the district heating networks and saturation of the existing infrastructure (+15 cubic meters) with the achievement of 100 million cubic meters in 2022.
• Growth in the energy efficiency segment also taking advantage of the introduction of the 110% Superecobonus
• 300m€ of investments to expand the client base (+28%) by going national, keeping the churn rate as one of the lowest in the sector, thanks to a new customer experience driven by digital platforms
• 5x national clients thanks to digital strategy and commercial excellence
• +100% Iren Plus penetration rate driven by the extension of products and services offered, favored by Superbonus
• FY2020 includes an extra profitability of 14m€ due to commodities price volatility

21

REMARKS EBITDA ENERGY ANNEXES PAST

NETWORKS WASTE MARKET P&L CASHFLOW &

NFP FINANCIALS CLOSING

Regulatory framework FY 2020

	Gas distribution	Electricity distribution	Water service	Integrated waste collection service
Regulatory period	6 years (2020 – 2025)	8 years (2016 – 2023)	4 years (2020 – 2023)	4 years (2018-2021)
WACC methodology update	6 years (2016 – 2021)	6 years (2016 – 2021)	4 years (2020 – 2023)	4 years (2018-2021)
WACC update	every three years (2022) update of β in 2020	every three years (2022)	every two years (2020)	every four years (2022)

Until 2021 2022 - 2025 Gas distribution and metering 6.3% 6.3% Electricity distrib. and metering 5.9% 5.9% Until 2023 2024 - 2025 Integrated water service 5.2% 5.2%	Until 2021 2022 - 2025
Integrated waste collection serv. 6.3% 6.3%

Networks concessions FY 2020

	GAS CONCESSIONS		WATER CONCESSIONS		ELECTRICITY CONCESSIONS
ATEM	Expiry	AREA	Expiry	AREA	Expiry
Genova 1	Expired	Piacenza*	Expired	Torino	2030
Parma	Expired	Reggio Emilia*	Expired	Parma	2030
Reggio Emilia	Expired	Genova	2032	Vercelli 1	2030
Vercelli	Expired	Parma	2025
Piacenza 2 - Est	Expired	Vercelli 1	2023
		La Spezia	2033

AREA	Expiry
Torino	2030
Parma	2030
Vercelli 1	2030

23

NETWORKS WASTE MARKET P&L CASHFLOW &

*Ongoing tenders

NFP FINANCIALS CLOSING REMARKS EBITDA ENERGY ANNEXES PAST

Hydroelectric and waste concessions FY 2020

HYDROELECTRIC CONCESSIONS

AREA	Hydroelectric plant	Electric Power (MW)	Expiry
Piemonte 1	Pont Ventoux-Susa	157	2034
Piemonte 2	Valle Orco e S. Mauro	300	Expired 2010
Piemonte 3	S. Lorenzo, Moncalieri, La Loggia, valle Susa	25	---*
Campania	Nucleo Tusciano	108	2029
Liguria	Brugneto, Canate	10	Expired 2014

MAIN WASTE CONCESSIONS

AREA	Expiry
Parma**	1st in ranking
Piacenza**	1st in ranking
Reggio Emilia	Expired
Torino	2033
Vercelli 1	2028
Vercelli 2	Expired
La Spezia	2028
Novara**	1st in ranking

* The expiring date is not provided for electric power plants <3 MW ** 1st in ranking, pending the official final award

24

REMARKS EBITDA ENERGY ANNEXES PAST

NETWORKS WASTE MARKET P&L CASHFLOW &

NFP FINANCIALS CLOSING

FY 2020	Shareholding structure
>50% Public Shareholders	Public entities IREN's Shareholders are more than 50%: Municipality of Genoa ~19%, Municipality of Turin ~14%, Emilia Municipalities (Reggio Emilia, Parma, Piacenza and other minor Municipalities) ~17%, La Spezia Municipalities ~2%.	FCT (Municipality of Turin) 13.80% Municipality of Reggio Emilia 6.42%	FSU (Municipality of Genoa) 18.85%
LSS Loyalty Shares Scheme	In 2016, a LSS which establishes the rules for the double voting right for specific Shareholders' Resolutions and the elimination of the obligation for Public Shareholders to hold at least 51% of Iren's share capital has been introduced in Iren's bylaws. Since 2018, Public Shareholders must hold at least 50%+1 of the voting rights in relation to the Shareholders' Resolutions with increased vote. According to the Shareholders' Agreement updated in 2019, Public Shareholders who signed the agreement must hold at least 35% of Iren's share capital.	Other Munic. in Reggio Emilia province 5.29% Municipality of Parma 3.16%
4 Shareholders Agreements	Four Shareholders' agreements: - One between FSU (Municip. Of Genoa) , FCT (Municip. of Turin), Emilia Shareholders and former ACAM Municipalities (expiring April 2022) - One between FSU and FCT (expiring July 2021) - One between Emilia Shareholders (expiring April 2022) - One between former ACAM Municipalities (expiring May 2022 )	Municipality of Piacenza 1.37% Other Municipalities 0.04%
	They guarantee that all the most important decisions relating to Corporate Governance are taken 25/03/2021 by agreement of the public Shareholders. In particular, out of 15 members of IREN's BoDs, 13 are appointed by the members of the shareholders agreements, including the CEO, Chairman and Vice-Chairman which are unanimously appointed.	La Spezia Municipalities 1.89% Treasury shares 1.37*%
SBB 25 PAST ACHIEVEMENT	5th On April 2019, the shareholders meeting approved a share buyback program up to 5% of Iren's share capital. 13th On May 2019, the Board of Directors approved the launch of share buyback program on 2% of share capital. CASHFLOW & ESG EBITDA NETWORKS WASTE ENERGY MARKET P&L NFP	Free float 47.80% *Updated to March, 19 2020 FINANCIALS	CLOSING ANNEXES REMARKS

Public entities/shareholders FY 2020

IREN SHAREHOLDING STRUCTURE
Shareholders	Total Shares	%	Total Voting rights	%
FSU Municipality of Genoa	245,249,617	18.85%	490,499,234	24.84%
FCT Municipality of Turin	179,567,795	13.80%	359,135,582	18.19%
Municipality of Reggio Emilia	83,559,569	6.42%	167,119,138	8.46%
Other Municipalities of Reggio Emilia	68,754,590	5.29%	135,103,475	6.84%
Municipality of Parma	41,158,566	3.16%	82,317,132	4.17%
Municipality of Piacenza	17,846,547	1.37%	35,306,094	1.79%
Other Municipalities	534,070	0.04%	1,061,676	0.05%
La Spezia Municipalities	24,593,215	1.89%	45,045,196	2.28%
Shares/voting rights owned by public entities	661,263,969	50.83%	1,315,587,527	66.64%
Free float	621,811,763	47.80%	640,806,899	32.46%
Treasury shares*	17,855,645	1.37%	17,855,645	0.90%
IREN's Share capital	1,300,931,377	100%	1,974,250,071	100%

TRADE REGIME OF PUBLIC SHAREHOLDERS' SHARES

Shareholders	Total Shares	Non negotiable shares (until may 2022)	Negotiable shares (under specific policy to avoid overhang risk)	Freely negotiable shares (not included in the shareholders agreement)
FSU Municipality of Genoa	245,249,617	154,281,688	90,967,929	-
FCT Municipality of Turin	179,567,795	154,281,689	25,286,106
Municipality of Reggio Emilia	83,559,569	58,228,078	25,331,491	-
Other Municipalities of Reggio Emilia	68,754,590	44,147,738	22,628,456	1,928,396
Municipality of Parma	41,158,566	14,025,186	5,292,380	21,841,000
Municipality of Piacenza	17,846,547	12,248,901	5,597,646	-
Other Municipalities	534,070	311,318	216,288	6,464
Former ACAM Municipalities	24,593,215	17,804,838	2,805,654	3,982,723
Shares owned by public entities	661,263,969	455,329,436	178,125,950	27,758,583

On the 1st June 2018, the "loyalty share scheme" came into force. All the Shareholders that have kept IREN shares for at least two years and have been registered in the proper list have now a double voting right for each shares (only in relation to specific matters, such as the appointmentofthe Board ofDirectors and oftheBoard of Statutory Auditors).

*The voting right relating to treasury shares in the portfolio is suspended. The treasury shares, however, are included in the calculation of the quorum constituting the shareholders'meeting

26

ACHIEVEMENT ESG

NETWORKS WASTE MARKET P&L CASHFLOW &

capital NFP FINANCIALS CLOSING REMARKS EBITDA ENERGY ANNEXES PAST

205.884.533 negotiable shares equal to 15.8%ofIREN's share

FY 2020

27

Scenario

NETWORKS WASTE MARKET P&L CASHFLOW &

NFP FINANCIALS CLOSING REMARKS EBITDA ENERGY ANNEXES PAST

	FY '19	FY '20	Δ%
Gas Demand (bcm)	73.8	70.7	-4.1%
TTF €/000 scm	135	99	-27.1%
PSV €/000 scm	160	110	-31.7%
Energy Demand (Twh)	319.6	302.8	-5.3%
PUN (€/Mwh)	52.3	38.9	-25.7%
CO2 €/Ton	24.9	24.8	-0.3%
Green Cert. Hydro (€/Mwh)	92.1	99.1	+7.5%
TEE (€/TEE)	260	271	+4.1%

Balance sheet FY 2020

	FY '19*	FY '20
Net fixed assets	6,102	6,581
Net Working Capital	166	42
Funds	-625	-657
Other assets and liabilities	-286	-254
Net invested capital	5,357	5,712
Group Shareholders' equity	2,651	2,764
Net Financial Position	2,706	2,948
Total Funds	5,357	5,712
	*Restated

NFP FINANCIALS CLOSING

The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of IREN S.p.A., Mr. Massimo Levrino, hereby declares, pursuant to paragraph 2 of article 154 bis of the Consolidated Finance Act (Legislative Decree No 58/1998), that the accounting information contained in this presentation is consistent with the accounting documents, records and books.

This document was prepared by IREN mainly for use during meetings with investors and financial analysts. This document does not constitute an offer to sell or a solicitation to buy or subscribe shares and neither this entire document or any portion of it may constitute a basis or provide a reference for any contract or commitment.

Some of the information contained in this document may contain projected data or estimates that are based on current expectations and on opinions developed by IREN and are based on current plans, estimates, projections and projects. Consequently, it is recommended that they be viewed as indicative only.

Projected data and estimates entail risks and uncertainties. There are a number of factors that could produce significant differences between projected results and actual results. In addition, results may be affected by trends that are often difficult to anticipate, are generally beyond IREN's control and could produce results and developments that are substantially different from those explicitly or implicitly described or computed in the abovementioned projected data and estimates. The non-exhaustive list that follows being provided merely by way of example, these risks include: significant changes in the global business scenario, fluctuations in the prices of certain commodities, changes in the market's competitive conditions and changes in the general regulatory framework.

Notice is also given that projected data are valid only on the date they are produced. Except for those cases in which the applicable statutes require otherwise, IREN assumes no obligation to provide updates of the abovementioned estimates and projected data.