The Board of Directors of IREN S.p.A. today approved the consolidated financial statements as at 30 September 2024.

"The results just approved, with a Net Profit up by +9%, show a solid growth of all economic-financial indicators compared to last year and make us confident of achieving the guidance at the high end of the range with an expected year-end EBITDA of 1,250 million euro and a net debt/EBITDA ratio of 3.3x. - declares Luca Dal Fabbro, Executive Chairman of Iren - Confirming its commitment to pursuing balanced and sustainable growth, the Board of Directors has resolved to subscribe to EGEA's share capital increase, kick-starting the process that will lead to corporate control and consolidation from January 2025, one year ahead of Business Plan expectations. The anticipated consolidation will allow the Group to increase its expected Ebitda by about 55 to 60 million euro in 2025, confirming the Egea operation as a great industrial success for the Group."

“8% EBITDA growth in the first nine months certifies significant progress in the execution of the Industrial Plan made by Iren, thanks also to technical investments of EUR 560 million allocated to future growth - declares Gianluca Bufo, Chief Executive Officer and General Manager of Iren - We have achieved important milestones in the solid business model between the energy chain and regulated businesses: hydroelectric production, with a forecast of 1.4 TWh at the end of the year, takes us to an all-time record. The customer base has grown to over 2.3 million, with an additional 400 thousand contracts for IrenPlus services and products. We have reached almost 500 municipalities with environmental services and continue to improve the quality of distribution services to the benefit of the inhabitants served”.

"In the past nine months, we have successfully brought onboard 410 individuals, a result of our meticulous recruitment policies focused on developing and in-housing activities and inorganic operations. - stated Moris Ferretti, Executive Vice-President of the Iren Group - Iren's strategy, dedicated to generating enduring value for its regions, is being continually reinforced by fostering local employment and committing to sustainability. This includes all new acquisitions, which have allowed us to grow significantly in new regions, first and foremost Tuscany."

IREN GROUP: CONSOLIDATED RESULTS AS AT 30 SEPTEMBER 2024

Consolidated Revenues as at 30 September 2024 amounted to 4,156.6 million euro, down -10.2% compared to 4,626.2 million euro of the first nine months of 2023. The main factors in the reduction of turnover are attributable to energy revenues, influenced for over 270 million euro by the reduction in commodity prices and for approximately 40 million euro by lower unit consumption and climatic effects, factors that have reduced energy sales. Revenues related to energy efficiency activities such as energy upgrades of buildings also decreased, due to the gradual completion of works related to the 110% Superbonus (over 250 million euro). Finally, changes in the scope of consolidation affect revenues positively by approximately 46 million euro and refer to the consolidation of Siena Ambiente (from January 2024), Acquaenna and Remat (from June 2023) and Semia Green (from October 2023).

Gross Operating Profit (EBITDA) amounted to 923.5 million euro, an increase (+7,7%) compared to 857.3 million euro for the first nine months of 2023. The period was characterised by a less favourable energy scenario than in 2023, by major tariff revisions affecting the Networks BU and the Environment BU for waste collection activities, by the full recovery of the commercial margins of the Market BU and by the start, albeit not yet fully operational, of the operational phase of some plants of the Environment sector. As far as the energy scenario is concerned, the main factor characterising the period was the drop in the price of electricity (-21%) and, consequently, in electricity and heat generation margins; this had a major negative impact on EBITDA (-88 million euro), which was partially absorbed (+49 million euro) by the higher quantities produced, particularly by hydroelectric production (+29%), which benefited from an improvement in the hydraulicity of the period and photovoltaic due to the contribution of new plants (+42%). Marketing activities of energy commodities (+59 million euro) were particularly positive, mainly in relation to the sale of electricity, which benefited from a significant recovery in margins. A positive contribution to the margin is generated by organic growth related to tariff increases as a result of investments made on the BU Networks in recent years (+10 million euro) as well as tariff revisions at the beginning of the year (+57 million euro). Within the Environment BU (+7 million euro), the waste treatment and disposal business decreased due to lower plant operations (maintenance, breakdowns), while the waste collection business recovered margins, benefiting from the positive effects of tariff regulation. The Energy Efficiency sector declined (-37 million euro) due to the conclusion of the 110% Superbonus redevelopment activities. Finally, perimeter changes related to the consolidation of Siena Ambiente (as of January 2024) and AcquaEnna (as of June 2023), amounting to approximately 14 million euro, contributed to the margin improvement.

The change in the margin with reference to the individual business units is broken down as follows: marked improvement in the Market business unit (+49.4%), Networks (28.5%), Environment (+3.7%), Energy (-29.9%).

Operating profit (EBIT) amounted to 378.7 million euro, an increase of +16.8% compared to 324.2 million euro for the same period in 2023. The period saw higher amortisation/depreciation of approximately 45 million euro related to the entry into operation of new investments and the expansion of the consolidation scope, lower provisions for risks of about 43 million euro mainly due to the elimination of extraordinary provisions as a result of the provisions of the “Sostegni ter” Decree Law in 2023 and no longer repeatable, and higher provisions for bad debt of approximately 5 million euro. There were also higher write-downs of about 6 million euro related to the Cadelbosco sorting and treatment plant for plastics from separate waste collection following the fire that occurred in the third quarter of 2024.

Group net profit attributable to shareholders was 192.6 million euro, up (+9%) from 176.8 million euro as at 30 September 2023, despite the increase in the tax rate for the period to 30% from 26% last year due to the non-taxability of tax credits recognised against corporate energy costs.

Net financial debt stood at 4,107 million euro as at 30 September 2024, a slight difference (+4%) from 3,934 million euro as at 31 December 2023. Operating cash flow entirely accommodated the technical and financial investments for the period. Net working capital, bolstered by the Superbonus credit sales totalling nearly 250 million euro, rose by 90 million euro. This marks a decline compared to the first half of the year, due to the positive contributions of higher sales of electricity on the Exchange with short-term settlement, against higher gas consumption in the third quarter for thermoelectric production with deferred payment.

Gross investments realised in the period amounted to 671 million euro, up (+12%) compared to the same period in 2023, of which 560 million euro are technical capex and 111 million euro financial capex (87 million euro related to the purchase of 50% of Egea, 19 million euro related to the consolidation of Sienambiente, and 5 million euro related to the purchase of authorisations for the construction of the new agri-voltaic plant). Investments in the period were mainly for the construction of infrastructure under the Integrated Water Cycle Sector Plans, the modernisation of electricity networks, and the construction of waste treatment and renewable generation plants.

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