Iren — Investor Presentation 2024

Jul 29, 2024

H1 2024 RESULTS

July 29th, 2024

KEY HIGHLIGHTS ²

2

3

H1 RESULTS AT A GLANCE

▪ Organic & inorganic growth

▪ Waste plants' availability and ramp-up costs

H1 2024 RESULTS

ESG

NETWORKS

HIGHLIGHTS

KEY FINANCIALS

WASTE

MARKET

ENERGY

EBITDA - NET PROFIT

NFP

NETWORKS NETWORKS NETWORKS Growth driven by investments and new regulatory parameters ⁵

• Increased allowed revenues (+40€M) thanks to investments and new regulatory parameters partially counterbalanced by higher operational costs (mainly in water)
• Extraordinary recovery of inflation in water for 9€M experienced in Q1 and not replicable
• Positive contribution of consolidation (+5€M) through Acquaenna, operating in Sicily water service

HIGHLIGHTS

ESG

KEY FINANCIALS

WASTE

NETWORKS

ENERGY

MARKET

EBITDA - NET PROFIT

NFP

NETWORKS WASTE Up in collection and consolidation, down in plants' activities ⁶

• Positive results in Collection, due to the inflation recovery in tariffs and efficiencies
• Treatment & Disposal were down, due to lower plants' availability (WTE turbine extraordinary maintenance and WTE failure impacted for 9M€) and high ramp up costs
• Lower energy scenario and minor special waste volumes to landfills (-14%)
• Positive contribution from the consolidation of Sienambiente (+6M€)

NETWORKS ENERGY Lower energy prices and energy efficiency works' conclusion ⁷

• RES benefited from higher volumes (almost +50% YoY) offset by lower energy prices
• Lower heat due to the decrease in margins following the gas price trend partially counterbalanced by higher volumes (+5%)
• Lower production hours to capture positive clean spark spread combined with a weaker MSD (12€M vs. 16€M in H1 2023)
• Works' conclusion after Superbonus incentives

NETWORKS MARKET ⁸ Positive increase of value in a more competitive market

• Effectiveness commercial policy
• Margins partially offset by higher costs for maintaining the customer base in a competitive market
• Retail clients around 2.2M in line with FY2023
• Electricity volumes sold increased in all business lines
• Good performance of Iren Plus & Others services thanks to bundle offers

EBITDA TO GROUP NET PROFIT RECONCILIATION

	'23 H1	'24 H1	Δ	% Δ
EBITDA	606	636	29	4 8%
D&A	-287	-320
bad debt Provisions to	-36	-34
Other provisions and write-downs	-36	- 1
EBIT	248	281	33	13 1%
Financial charges	-41	-46
consolidated method Companies equity at	1	5
Others	5	2
EBT	214	241	27	12 6%
Taxes	-56	-74
Minorities	-15	-22
profit Group net	143	145	2	1 5%

ANNEXES NETWORKS WASTE MARKET EBITDA - NET PROFIT NFP CLOSING REMARKS ENERGY KEY FINANCIALS ESG HIGHLIGHTS ▪ Increased tax rate in 2024, which does not benefit from the tax credit for energyconsuming companies (30.5% vs. 26.1% in the H1 2023). ▪ Depreciation increase linked to investments made and new companies' integrations (Sienambiente and Acquaenna) ▪ Other provision one-off for Sostegni ter Decree in 2023 (34€M) ▪ Cost of debt at 2.1% (vs 1.8% in H1' 23)

H1 2024 RESULTS

NET FINANCIAL POSITION EVOLUTION (H1 2024 VS FY2023)

▪ Dividend outflow for 180€M

H1 2024

CLOSING REMARKS

H1 2024 RESULTS

ESG

NETWORKS

HIGHLIGHTS

KEY FINANCIALS

WASTE

MARKET

ENERGY

EBITDA - NET PROFIT

NFP

ANNEXES

CLOSING REMARKS

GUIDANCE 2024 CONFIRMED

• EBITDA 1,240M€ (+4% vs. FY2023)
• Net profit 260/270M€ (+4% vs. FY2023)
• Gross Investments: ~1B€ (including EGEA's minority stake cash out)
• NFP/EBITDA: ~3.3x

ANNEXES

H1 2024 BUSINESS UNITS' RESULTS ¹³

NETWORKS
€M	'23 H1	'24 H1	Δ	Δ%
Revenues	545	621	76	14%
Ebitda	189	238	49	26%
Electricity	41	4 4	3	7%
Gas	41	4 8	7	17%
Water	107	146	39	36%
Ebit	84	125	41	49%
Technical capex	146	163	17	12%

€M	'23 H1	'24 H1	Δ	Δ%
Revenues	1 615	895	-720	-45%
Ebitda	192	135	-57	-30%
Hydro&Renewables	51	6 2	11	22%
Thermo/Coge DH ,	108	7 1	-37	-34%
eff others Energy &	33	2	-31	-94%
Ebit	74	4 9	-25	-35%
Technical capex	41	5 2	11	26%

	NETWORKS				WASTE
				€M	H1 '23	H1 '24	Δ	Δ%
				Revenues	595	616	21	4%
				Ebitda	132	125	-7	-5%
				Collection	38	5 7	19	50%
				Treatment & disposal	94	6 8	-26	-28%
				Ebit	54	2 8	-26	-48%
				Technical capex	91	7 0	-21	-23%
	ENERGY				MARKET
'23 H1	'24 H1	Δ	Δ%		'23 €M H1	'24 H1	Δ	Δ%
				Revenues	2 128	1 556	-572	-27%

33

58

2

36

43 139

6 0

7 2

7

7 8

3 8 45

27

14

5

42

-5

Ebitda 94

Iren Plus & others

Ebit

Technical capex

Electricity

Gas H1 2024 RESULTS

HIGHLIGHTS

ESG

KEY FINANCIALS

NETWORKS

WASTE

ENERGY

MARKET

EBITDA - NET PROFIT

NFP

CLOSING REMARKS

(*) Variation greater than 100%

48%

82%

24%

(*)

(*)

-12%

A SOUND AND SUSTAINABLE DEBT STRUCTURE

		H1 '23	H1 '24	Δ%
Electricity distributed (GWh)		1,756	1,748	-0%
Gas distributed (mcm)		601	593	-1%
Water sold (mcm)		87	88	+1%
Waste collected (Kton )		1,053	1,149	+9%
Waste treated (Kton )		1,383	1,463	+6%
WTE's electricity sold (GWh)		243	237	-3%
WTE's heat produced (GWht )		193	181	-6%
Renewables production (GWh)		561	836	+49%
	Hydro production (GWh)	463	691	+49%
	Solar production (GWh)	98	145	+48%

H1 2024 RESULTS

ESG

NETWORKS

HIGHLIGHTS

KEY FINANCIALS

WASTE

ENERGY

MARKET

EBITDA - NET PROFIT

NFP

	H1 '23	H1 '24	Δ%
PSV €/000 scm	50	33	-34%
PUN (€/MWh)	136	93	-32%
CO2 €/Ton	87	64	-26%
Green Cert. Hydro (€/MWh)	0	42	n.s.
Clean spark spread (€/MWh)	-1.6	-6.1	n.s.

H1 2024 RESULTS

ESG

KEY FINANCIALS

HIGHLIGHTS

NETWORKS

WASTE

ENERGY

MARKET

EBITDA - NET PROFIT

NFP

DISCLAIMER

The Manager in charge of drawing up the corporate accounting documents and the Chief Financial Officer of IREN S.p.A., Mr. Giovanni Gazza, 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.

H1 2024 RESULTS

ESG

NETWORKS

HIGHLIGHTS

KEY FINANCIALS

WASTE

MARKET

ENERGY

EBITDA - NET PROFIT

NFP

ANNEXES