Iren : Italian Infrastructure & Energy Day 2022 | 8th September 202

Italian

Infrastructure

• Energy Day 2022

8th September 2022

EBITDA +9% yoy

EBIT +13% yoy

Gross Investments

2.2x yoy

Sound organic

growth driven by

industrial

performance,

energy efficiency

activity and the development of renewable pipeline

Key Highlights

Resilience of the integrated energy value chain and Capacity Market margins stabilization able to offset exceptional drought and Government measures

Continuous WC	FY 2022 Guidance
discipline, with Net	confirmed
Debt increasing due
to dividends and
M&A

2	H I GHLIGHTS	K E Y	N F P	GAS	CL O SING	ANNEXES
	FI NANCIALS	P RO CUREMENT	RE MARKS

Growth path confirmed, supported by organic growth and RES investments

(€M)	H1 '21	H1 '22		Δ%
	Revenues	2,004	3,712	1,708	85.2%
	EBITDA	516	563	47	9.0%
	EBIT	250	283	33	13.1%
	Group net profit	193	133	-60	-31.0%
	Group net profit adj.*	152	164	11	7.6%
	Gross investments	338	739	401	2.2x
	Net Financial Position	2,906**	3,398	492	17.0%

	Organic growth
Capacity Market	+€20M
+€34M

EBITDA EVOLUTION

					+9%
					+8%
	516			28	72	542	21	563
(€M)	503	3
		-13				-64

H1 '21 One-	Networks Waste Energy Market	One- H1 '22
offs '21		offs '22
	Drought impact on the	Energy scenario
	integrated value chain
Renewables	& others
-€50M
+€17M	+€18M

• H1 '21 affected by €32M of non-recurring tax income on the realignment of accounting and tax values and by €12M of pre-tax positive one-off effect linked to Unieco debt optimization; H1 '22 impacted by "Contributo di solidarietà" Decree (i.e. Windfall tax) for estimated €31M following the new guidelines issued by the Italian Fiscal Authority in June 2022

** FY 2021

3	H I GHLIGHTS	K E Y	N F P	GAS	CL O SING	ANNEXES
	FI NANCIALS	P RO CUREMENT	RE MARKS

Net Financial Position Evolution (H1 2022 vs FY2021)

(€M)					€ +492M (+17%)		165
					279		3.398
							-2
2.906			150	338
				125
			-563
			Operating cash flow levered
				€ -288M
	FY' 21	Ebitda	Other	Change in NWC	Net Capex	M&A	Dividends	MtM Derivatives	H1 '22
	* Including €130M of taxes	variations*

 Continuous effective and disciplined Net Working Capital and Net Debt management, despite disruptive scenario, year-over-year doubling of revenues and seasonality

 Impact of bill instalment payments measure of €80M in H1 2022

 Higher prices of gas storage affecting NWC performance by €80M; impact expected to increase in Q3 and to be fully re-absorbed between Q4 2022 and Q1 2023

 Funding for the year already fully secured

4	H I GHLIGHTS	K E Y	N F P	GAS	CL O SING	ANNEXES
	FI NANCIALS	P RO CUREMENT	RE MARKS

Gas procurement strategy status update

• Overall gas storage increased vs. last year
• Bilateral contracts with large players, with Iren not responsible for procurement activities
• No direct Russian gas import
• Flexibility in delivery management combining bilateral contracts at Citygate (REMI) with higher portion of delivery at HUB (shipping mode)

• Almost 60% of Iren annual needs (~2.6Bcm) already secured, of which 100% for final clients
• The remaining portion will be secured in the next weeks or opportunistically negotiated based on actual market needs (thermoelectric)

5	H I GHLIGHTS	K E Y	N F P	GAS	CL O SING	ANNEXES
	FI NANCIALS	P RO CUREMENT	RE MARKS