Iren — Investor Presentation 2021

Mar 29, 2022

FULL-YEAR 2021 RESULTS

29th March 2022

2021 Highlights

NEW PLANTS / OPENINGS

• Plastic treatment plant in San Giorgio (UD) entered into operation, with a capacity of 40 kt/y; already authorized expansion underway to reach a total capacity of 70 kt/y
• Biomethane production started in Cairo Montenotte (SV) and Santhià (VC) plants
• Paper & plastic treatment plant in Parma (PR) entered into operation, with a capacity of 135 kt/y
• First waste deliveries from expanded (+ 35,000mc) REI landfill in Collegno (TO)
• 5 new stores openings (Sarzana, Parma, Torino, Grugliasco, Modena)

TENDERS

• Participated to the integrated water service tender of Reggio Emilia
• Awarded 2 electrical storage (22MW at 51k€/MW/y) in Sardinia for 15 years and a CCGT revamping for 15 years (7MW at 75k€/MW/y)
• Confirmed capacity market on existing capacity (1.860MW)

ACQUISITIONS

• Futura S.p.A mechanical biological treatment plant
• Nove S.p.A. district heating service in Grugliasco (TO)
• Bosch Energy and Building Solutions Italy S.r.l.
• Gas distribution assets from A2A
• Alegas S.r.l. 43,000 retail clients
• Sidiren S.r.l. 52,000 gas customers
• 121.5 MW of photovoltaic plants from European Energy

OTHER MILESTONES

• Issued 200m€ Green Bond ("Tap Issue")
• Presented the new Business Plan @2030
• S&P assigned new BBB- "Positive" rating and Fitch confirmed BBB "Stable"
• Released Sustainable Financing Framework

2

ACHIEVEMENTS

Improvement of all ESG KPIs

ACHIEVEMENTS

NETWORKS WASTE MARKET EBITDA - REMARKS ESG EBITDA ENERGY ANNEXES MAIN

NET PROFIT NFP CLOSING

Robust growth despite unexpected challenges

(m€) FY '20 FY '21 Δ Δ% Revenues 3,726 4,956 1,230 33.0%
Ebitda 927 1,016 89 9.6%
Ebit 415 454 39 9.3%
Group net profit 239 303 64 26.7%
Gross investments 913 955 42 4.6%
NFP 2,948 2,906 -42 -1.4%

EBITDA BRIDGE

4

NETWORKS WASTE MARKET EBITDA - REMARKS ESG EBITDA ENERGY ANNEXES MAIN

NET PROFIT NFP CLOSING

Solid results underpinned by RAB expansion

• Allowed revenues growth (+17m€) supported by previous years' investments (RAB), partially offset by extraordinary operational costs linked to service quality improvement and digitalization
• Investments increased by 14m€ vs PY, mainly in Water and Electricity Networks
• Districtization activities continue reaching 60%+ of the grid

ACHIEVEMENTS

NETWORKS WASTE MARKET EBITDA -

NET PROFIT NFP CLOSING

OUTLOOK

1.111 1.199

713 723

+1%

460 480

+4%

2,284 2,402

(m€)

FY '20 FY '21 Water Gas Electricity +8% REMARKS ESG EBITDA ENERGY ANNEXES MAIN 2022

Favourable energy contribution, organic growth and consolidations drive profitability

WTEs ENERGY SOLD

+13%

^{727 818}

^{208 321}

+54%

-4%

FY '20 FY '21 Heat Electricity

2022 OUTLOOK

• +22m€ contribution from full-year consolidation of Unieco and I.Blu
• Favorable energy scenario on electricity and heat sold thanks also to increase volumes
• Increase in profitability of recoverable waste
• Ceased contribution from REI landfill; re-start of operations with extended capacity from 2022
• Phase-in of new plants in Q4 2021

6

ACHIEVEMENTS

NETWORKS WASTE

REMARKS ESG EBITDA ENERGY ANNEXES MAIN

NETWORKS WASTE MARKET EBITDA -

NET PROFIT NFP CLOSING

519

(GWh)

Profitability recovery driven by positive market evolution combined with strong organic development

ELECTRICITY PRODUCED

• Resilience of the Group's business model demonstrated by the optimized balance between a positive energy scenario for renewables with a downstream market exposure (natural hedging)
• Extraordinary MSD at 128m€ (+47m€ vs PY) partially offset by lower spark spread on thermal
• Adverse clean spark spread on heat generation compensated by increase in volumes due to positive climate impact and organic development (networks expansion)
• +14m€ contribution from a robust growth in Iren Smart Solutions activities (energy efficiency)

NETWORKS ENERGY

NETWORKS WASTE MARKET EBITDA -

NET PROFIT NFP CLOSING

Integrated energy value chain enabling to counter adverse market scenario

• Negative impact from unhedged volumes, recovered through hydro and WTE productions (natural hedging)
• Strong customer base growth vs PY, with +126k retail & SMEs clients
• Iren Plus positive results
• Higher volumes sold to end clients (electricity and gas)

IREN PLUS – Penetration rate (n. 000) 971 1,049 906 954 FY '20 FY '21 Electricity Gas 1,877 2,003 +5% +8%

RETAIL & SMEs CLIENTS

+7%

NETWORKS MARKET

NETWORKS WASTE MARKET EBITDA -

Ebitda to Group Net Profit reconciliation

	FY '20	FY '21	Δ	Δ%
EBITDA	926.9	1,015.8	88.9	9.6%
Depreciations	-440.8	-477.9
Provisions to bad debt	-61.7	-53.5
Other provisions and write-downs	-9.0	-30.3
EBIT	415.4	454.1	38.7	9.3%
Financial charges	-68.5	-63.8
Companies cons with e.m.	6.5	10.3
Other financial	15.9	23.2
EBT	369.3	423.8	54.5	14.8%
Taxes	-100.0	-90.3
Minorities	-30.1	-30.4
Group net profit	239.2	303.1	63.9	26.7%

• Higher depreciations linked to increased investments, combined with I.Blu and Unieco full-year consolidations
• Reduction of COVID-19 impact on bad debt provisions (10m€ in 2021 vs 25m€ in 2020)
• Other provisions impacted by fund release in 2020 (16m€); 2021 impacted by selected assets write-downs
• Strong decrease in average cost of debt (1.7% in 2021 vs 2.1% in 2020)
• €32M one-off tax income as a result of "DL Agosto" 2020 (i.e. realignment of tax and book values of assets)
• Ordinary tax rate at 29.0%

REMARKS ESG EBITDA ENERGY ANNEXES MAIN

NETWORKS WASTE MARKET EBITDA -

OUTLOOK

Net Financial Position Evolution (2021 vs 2020)

• Increase in investments more than offset by robust operating cash flow generation
• Effective and optimized net working capital management
• Positive contribution from derivatives mainly related to commodities

NET PROFIT NFP CLOSING

Closing remarks

Having closed 2021 ahead of our Plan, we are proposing to pull-ahead the dividend per share growth initially forecasted for the next year

DPS IMPROVED +10.5%

IREN reported solid 2021 results despite a very challenging market environment, thanks to the resilience of its business model & integrated energy value-chain and to the effectiveness of the measures taken during the year to counter the unexpected volatility of the energy scenario

Our 2021 achievements combined with the actions executed in the first few months of 2022, confirm the validity of our strategic framework and its consistency vis-à-vis the current sector mainstreams

Continuous organic development combined with the planned additional consolidations / acquisitions will be the main catalysts of our growth in the next year, further sustained by an acceleration in our target renewable investments

11

REMARKS ESG EBITDA ENERGY ANNEXES MAIN

NETWORKS WASTE MARKET EBITDA -

NET PROFIT NFP CLOSING

2022 Outlook

In 2022, IREN – in line with the rest of the industry – is expected to face several headwinds such as a continuously volatile energy scenario, likely changes in the generation market framework, released / announced government measures, WACC reduction and an adverse climate environment (i.e., drought)

GUIDANCE FY 2022 Taking into account the mitigants (hedging policy, renewables development, organic growth and consolidation) already deployed by Iren to face the headwinds, we confirm the guidance on Ebitda while increasing investments

The resiliency of the business model allows to accelerate the investments related to our strategic pillars with a strong effort on renewables development to help Italy in the energy transition process

*Includes 250m€ of capex contribution/incentives

2022 OUTLOOK

REMARKS ESG EBITDA ENERGY ANNEXES MAIN

NETWORKS WASTE MARKET EBITDA -

NET PROFIT NFP CLOSING

ANNEXES

Iren at a glance FY 2021

7million INHABITANTS IN IREN'S 3 LEGACY REGIONS REGULATED ACTIVITIES (46% of Ebitda) QUASI REGULATED ACTIVITIES (24% of Ebitda)

-

-

Energy Infrastructure	Water Service	Urban Waste Collection
Hydroelectric Green Certificates	District Heating	Urban Waste Disposal
Generation	Energy Market	Special Waste

ACHIEVEMENTS

REMARKS ESG EBITDA ENERGY ANNEXES MAIN

NETWORKS WASTE MARKET EBITDA -

NET PROFIT NFP CLOSING

FY 2021 Business units' results

NETWORKS
m€	FY '20	FY '21	Δ	Δ%
Revenues	1,041	991	-50	-5%
Ebitda	376	383	7	2%
Electricity	79	82	3	3%
Gas	85	90	5	5%
Water	212	211	-1	0%
Ebit	186	188	2	1%
Gross Capex	294	308	14	5%

	ENERGY						MARKET
m€	FY '20	FY '21	Δ	Δ%
Revenues	1.145	2.280	1135	99%
Ebitda	228	298	70	31%
Hydro&Renewables	56	80	24	43%
Thermo/Coge, DH	159	196	37	23%	Electricity	56
Energy efficiency	13	22	9	69%	Gas&Heat	91
Ebit	111	157	46	41%
Gross Capex	172	170	-2	-1%

WASTE
m€	FY '20	FY '21	Δ	Δ%
Revenues	765	916	151	20%
Ebitda	173	227	54	32%
Collection	60	62	2	3%
Treatment & disposal	113	165	52	46%
Ebit	50	92	42	85%
Gross Capex	116	164	48	41%

m€	FY '20	FY '21	Δ	Δ%
Revenues	2.085	3.071	986	47%
Ebitda	147	104	-43	-29%
Electricity	56	12	-44	-78%
Gas&Heat	91	92	1	1%
Ebit	67	15	-52	-78%
Gross Capex	51	65	14	28%

• 99% of gross debt at fixed interest rate
• Average long-term debt duration of about 5.7 years vs 6.1 years in FY2020
• Reduction in the average cost of debt (1.7% vs. 2.1% in FY2020)
• 64% of the Iren total debt is composed of green and assimilated instruments
• New Sustainability Financing Framework published
• New credit rating from S&P and confirmed of rating Fitch

Outlook Positive	- BBB
Outlook Stable	BBB

16

REMARKS ESG EBITDA ENERGY ANNEXES MAIN

NETWORKS WASTE MARKET EBITDA -

NET PROFIT NFP CLOSING

FY 2021 Industrial Kpis

	FY '20	FY '21	Δ%
Electricity distributed (GWh)	3,587	3,680	+3%
Gas distributed (mcm)	1,250	1,347	+8%
Water distributed (mcm)	175	175	-
Waste collected (Kton)	1,631	1,675	+3%
Waste treated (Kton)	2,253	2,926	+30%
Thermal production (GWh)	8,160	7,947	-3%
Renewable production (GWh)	1,284	1,226	-5%
Hydro production (GWh)	1,264	1,206	-5%
Solar production (GWh)	20	20	-
Electricity sold to end clients (TWh)	5.8	6.0	+3%
Gas sold to end clients (mcm)	926	954	+3%

ACHIEVEMENTS

NETWORKS WASTE MARKET EBITDA - REMARKS ESG EBITDA ENERGY ANNEXES MAIN

NET PROFIT NFP CLOSING

18

REMARKS ESG EBITDA ENERGY ANNEXES MAIN 2022 OUTLOOK

	FY '20	FY '21	Δ%
Gas Demand (bcm)	70.7	76.2	+7.8%
PSV €/000 scm	11.0	48.5	>100%
Energy Demand (Twh)	301.2	318.1	+5.6%
PUN (€/Mwh)	38.9	125.5	>100%
CO2 €/Ton	24.8	53.3	>100%
Green Cert. Hydro (€/Mwh)	99.1	109.4	+10.4%
TEE (€/TEE)	270.6	259.5	-4.1%

NETWORKS WASTE MARKET EBITDA -

FY 2021 Scenario

Sustainable Financing Framework at a Glance

REMARKS ESG EBITDA ENERGY ANNEXES MAIN

NETWORKS WASTE MARKET EBITDA -

Framework Components

Category	Eligible Projects/Activities	SDG
Renewable Energy	Hydroelectric power electricity • generation Solar PV electricity generation • Wind power electricity generation •
Energy Efficiency	Energy network development • Electricity storage • Thermal storage capacity • • Cogeneration facilities District heating networks • Gas network hydrogenation • Buildings energy efficiency • Waste to Energy facilities • • Waste-to-chemical facilities
Circular Economy	Waste urban collection • Waste urban recycling • Waste urban treatment •
Sustainable Water and Wastewater Management	Wastewater treatment plant upgrades • • Water distribution network efficiency
Clean Transportation	• Electric Vehicles E-mobility •

NETWORKS WASTE MARKET EBITDA - REMARKS ESG EBITDA ENERGY ANNEXES MAIN

NET PROFIT NFP CLOSING

Sustainability-Linked Rationale and Strategy

	KPI#1 Scope 1 GHG Emissions Intensity (gCO2eq/kWh)	KPI#2 Scope 3 GHG Emissions (kt of CO2eq)	KPI#3 Water Leaks (%)	KPI#4 Waste treated in Material Recovery Plants (kt)
Rationale	The target is coherent with the overall IREN's • strategy to achieve net carbon neutrality in scope 1 emissions by 2040 Scope 1 emissions account for about 50% of • the total Group emissions as of 2020 (baseline year) • The 2030 target is validated by the Science Based Target Initiative (SBTi) - Well-below 2°C scenario	The target is coherent with the overall • IREN's decarbonization strategy Scope 3 emissions account for about 46% • of the total Group emissions as of 2020 (baseline year) • The 2030 target is validated by the SBTi - Well-below 2°C scenario	The percentage of total water leaks in Italy was 42% in 2018. The Istituto Nazionale di Statistica (ISTAT) reports that for every 100 litres introduced into the distribution network in 2018, over 42 do not reach the taps of the houses and it estimates that recovering these leaks could guarantee the water needs of about 44 million people in one year, more than Italians1 two thirds of	Circular Economy is embedded in the • IREN's sustainability strategy IREN will contribute to the achievement of • the target of Waste Framework Directive2 The largest potential to improve circularity • is in plastics, where recycling rates today low3, are and CO2 gains would be substantial • The recovery of organic waste contributes to CO2 reduction. • Plastic, organic and wood waste recovery PNRR4 is part of the
Strategy to Achieve the Target	Development of new RES assets, focused • mainly on photovoltaic and wind power (+2.2 GW installed capacity) Renewal of hydro concessions, through • revamping Divestment of thermoelectric assets (not • functional to district heating) planned in the 2026-30 period Increase in the use of low carbon gases for • energy production	Purchase of 100% renewable electricity • Biomethane from waste used for mobility • and to feed the gas networks Gas networks hydrogenation • Push towards electrification compensating • for gas consumption reduction	Renovation of water supply networks • Grid compartmentation • Smart solutions for the early identification • of leakages	IREN has acquired in 2020 I.Blu, which operates in the selection of plastic waste to be sent to recovery and recycling. The Company plans to increase the existing plant's capacity and build a new plant to treat heterogeneous plastics (plasmix) that currently have no outlet in the recycling market Furthermore, IREN plans to improve its capacity of recycling organic waste, with the production of compost and biomethane, and wood, building new and increasing existing plants

(1): https://www.istat.it/it/files//2021/03/GMA2021_ENG.pdf

(2): Waste Framework Directive (as amended by 2018/851) defines that by 2030, the preparing for re-use and the recycling of municipal waste shall be increased to a minimum of 60 % by weight

(3): Recycled volumes are just 10% of plastics in the market (4): National Recovery and Resilience Plan

21

ACHIEVEMENTS

NETWORKS WASTE MARKET EBITDA -

NET PROFIT NFP CLOSING

Decarbonizzazione

Economia Circolare

Risorse idriche

Città resilienti

People

26

personale con assenze superiori a 6 mesi; *** Dato 2019 non influenzato da emergenza Covid19

Disclaimer

The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of IREN S.p.A., Ms. Anna Tanganelli, 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.

NETWORKS WASTE MARKET EBITDA -