Strong EBITDA growth +13%, driven by margin recovery in the Market BU, organic growth in regulated businesses and full integration of acquired companies. Net profit up (+26%). More than EUR 780 million of investments (+4%) in the period earmarked for the efficiency upgrading of distribution networks, the development of waste treatment plants and energy efficiency projects.

Main indicators

• Gross Operating Margin (EBITDA) in the amount of EUR 857 million (+13% compared to EUR 759 million as at 30/09/2022). The EBITDA increase is mainly driven by the recovery of the Market BU's marginality, the organic growth of regulated businesses (EUR +20 million) in a context characterised by lower energy volumes (EUR -24 million) and higher costs due to inflation, lower contribution from district heating and energy sale on ancillary service market (MSD).
• Operating profit (EBIT) of EUR 325 million (+1% compared to EUR 321 million at 30/09/2022), as it was affected by higher accruals to the provision for risks of EUR 41 million related to the Sostegni ter Decree Law concerning the "price cap" on the prices of electricity generated from renewable sources, of which EUR 14 million related to 2022 and EUR 27 million related to 2023.
• Group net profit attributable to shareholders of EUR 177 million (+26% compared to EUR 141 million as at 30/09/2022).
• Technical investments and energy efficiency works amounting to EUR 781 million, up 4% compared to 2022, mainly aimed at developing territorial infrastructure, improving service quality, particularly in the water sector, and supporting energy transition.
• Net financial debt at EUR 3,930 million (+17% compared to EUR 3,347 million as at 31/12/2022), essentially in line (EUR +10 million) with the figure posted at 30 June 2023. Compared to 31 December 2022, this increase is mainly attributable to the investments made during the period and the temporary increase in working capital.
• Excellent results of ESG performance indicators in line with Plan forecasts and improving on 2022: +30% of material recovered in the Group's plants, +72% of biomethane production, 71% separate waste collection and -5% drop in water withdrawal per inhabitant per day.
• Total workforce of 10,979 employees, an increase of around 400 compared to 31/12/2022.

Board of Directors of IREN S.p.A. today approved the consolidated financial statements as at 30 September 2023.

"The results just approved, with EBITDA growth of 13%, confirm once again the effectiveness of Iren's multi-business model, which allows the rapid integration of the acquired companies, further accelerating the achievement of industrial objectives," - says Luca Dal Fabbro, Executive Chairman of Iren. - "The Group has further strengthened its leadership in the historical territories in which it operates, also through the hiring of 400 people, demonstrating great adaptive capacity to the changed economic scenarios and a natural inclination to generate value for shareholders and stakeholders."

“The positive results communicated in recent months are consolidated at the end of September with an increase in Net Profit of +26%, also thanks to constant investments that allow Iren to progress towards the ambitious goals of the Business Plan”. - says Paolo Signorini, CEO and General Manager of Iren - “Our commitment will continue in the coming years, further strengthening Iren's role as a key partner in the energy transition and in the development of territories and communities."

IREN GROUP: CONSOLIDATED RESULTS AT 30 SEPTEMBER 2023

Consolidated Revenues as at 30 September 2023 amounted to EUR 4,626.2 million, down -18% compared to EUR 5,643.6 million of the first nine months of FY 2022. The main factors contributing to the decline in sales were energy revenues, which were affected for more than EUR 660 million by lower commodity prices and for about EUR 490 million by a reduction in volumes due to the climatic effect, with a very mild winter, and a reduction in energy demand. Instead, contributing to the positive change in turnover are energy efficiency activities such as energy upgrading and the renovation of buildings, favoured by tax breaks (approximately +90 million). Finally, changes in the scope of consolidation affect revenues by approximately EUR 165 million and refer to the consolidation of Valle Dora Energia (from June 2022), SEI Toscana (from July 2022) and AcquaEnna (from June 2023).

Gross Operating Profit (EBITDA) amounted to EUR 857.3 million, an increase (+12.9%) compared to EUR 759.3 million in the same period in FY 2022. The margin for the period was positively impacted by the change in consolidation scope for approximately EUR 20 million, of which the main company is SEI Toscana (EUR +14 million), which operates in waste collection, organic growth related to increases in tariff revenues as a result of the development of investments in network services (energy and water), and the commissioning of the Reggio Emilia organic waste fraction (OFMSW) treatment plant. Marketing activities for both electricity and gas benefited from a significant recovery in unit margins following the reversal of the trend in the energy scenario (EUR +113). A substantial improvement was also achieved with regard to the generation scenario, in which the trend in hydroelectric sales prices and the thermoelectric margin made it possible to absorb the sharp drop in sales in the MSD dispatching market, which was also sharply reduced at national level.

On the other hand, the first nine months of 2023 were characterised by a contrasting trend in energy volumes, where an important increase in volumes from thermoelectric and hydroelectric sources, the latter resulting from good wind levels of the period, is contrasted by a sustained reduction in heat volumes as a consequence of the mild climate trend and a reduction in consumption as a consequence of the “high bills”. The margin for the period is impacted negatively by the higher costs for inflationary effects that will be recovered in future tariff periods, and the elimination of contingent assets related to the energy efficiency certificates of the Turin North cogeneration plant and the Council of State's ruling on the Water Service tariff adjustments of previous years, recorded in 2022.

Overall, the increase in margin with reference to the individual business units is broken down as follows: Waste Management -5%, Energy +2.9%, Networks -4.2%, while the Market business unit improved significantly (with an increase in excess of 100%); the latter trend to be considered together with the change in marginality of the Energy BU in the logic of integrated management of the energy supply chain (production and marketing of energy).

Operating profit (EBIT) amounted to EUR 324.7 million, an increase of +1.0% compared to EUR 321.4 million for the same period in 2022. During the period, there was higher depreciation and amortisation of more than EUR 42 million related to the commissioning of new investments and the expansion of the scope of consolidation, lower release of provisions of about EUR 14 million, and higher provisions for risks of about EUR 41 million related to the compensation mechanisms provided for in the Decree-Law on Tertiary Support (of which 14 million related to 2022). Without these extraordinary provisions, EBIT would have amounted to EUR 365.7 million, a considerable improvement compared with the first nine months of 2022.

Group net profit attributable to shareholders amounted to EUR 176.9 million, an increase (+25.6%) compared to the result recorded at 30 September 2022.

Net Financial Debt stood at EUR 3,930.1 million as at 30 September 2023, an increase (+17.4%) compared to the 31 December 2022 figure. In this regard, an absorption of working capital of EUR 421 million was reported, mainly due to payment terms for gas supplies that have not yet been normalised. There were also EUR 91 million of tax credits mainly related to the Superbonus 110% projects and an investment flow of EUR 598 million (EUR 548 million of technical investments in the period and EUR 50 million of inorganic investments).

Gross investments made in the period amounted to EUR 831 million, down (-22.6%) from EUR 1,073.3 million in the same period of 2022, of which EUR 548 million in technical investments (-2%), EUR 50 million in investments relative to M&A operations (consolidation of Acquaenna and Amter in the water segment, Limes 20 in the renewable energies segment and other minor contributors) and EUR 233 million in contributions related to energy efficiency projects (+18%). It is recalled that the acquisition of Puglia Holding's photovoltaic parks (EUR 181 million) was finalised in the first half of 2022.

(More in the attached document)