At the end of the first half of 2024, all economic indicators were on the rise: +5% in Gross Operating Margin (EBITDA) and +2% in Net Profit, mainly due to the adjustment of regulatory parameters in distribution network activities and the full recovery of the value of the customer portfolio, thanks to the effective commercial strategy. The almost EUR 370 million of investments allow the achievement of important industrial and sustainability milestones, such as the development of networks and the reduction of water losses to 30.4% (national average over 41%), the expansion into the circular economy with 72% separate waste collection and +19% recovered materials, and new renewable capacity with over 70MW.

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

“A half-yearly report characterised by economic indicators all up on last year. EBITDA +5% and Net Profit +2% show that the route undertaken, and confirmed in the recent business plan, is the correct one and allows the Group a continuous and solid growth while respecting financial sustainability. - declares Luca Dal Fabbro, Executive Chairman of Iren - The important economic results are also supported by significant industrial milestones, such as the start-up of the new 39MW photovoltaic plant in Tuscania and the acquisition of the authorisations for the construction of the first Italian advanced 49MW agri-voltaic plant in Rovigo, as well as the continuation of the activities aimed at the closing of EGEA. Supported by our half-year results, we confirm our 2024 guidance."

"In this first half of the year we have made almost 650 new hires, partly to cover replacements and partly to support the planned growth and aimed at business development, continuing to be an important working reality for our territories” - declares Moris Ferretti, Executive Deputy Chairman of Iren - “In addition, 71% of the investments sustained in the period are of a sustainable nature and allow Iren to move rapidly towards the achievement of the business plan targets on circular economy, with the recovery of materials for more than 560 tons of waste, energy transition, with the new renewable capacity, and the protection of water resources, with 71% of the district water networks."

IREN GROUP: CONSOLIDATED RESULTS AT 30 June 2024

Consolidated Revenues as at 30 June 2024 amounted to EUR 2,697.6 million, down -16.1% compared to EUR 3,214.4 million of the first half of 2023. The main factors contributing to the decline in sales were energy revenues, which were impacted for more than EUR 320 million by lower commodity prices, normalising after the energy crisis experienced in recent years, and about 48 million due to lesser consumption and climate effects. 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 (around EUR -190 million). Finally, changes in the scope of consolidation affect revenues by approximately EUR 42 million and refer to the consolidation of Sienambiente (from January 2024) and AcquaEnna (from June 2023).

Gross Operating Profit (EBITDA) amounted to EUR 635.8 million, a significant increase (+4.8%) compared to EUR 606.5 million for the first half of 2023. The first half of 2024 was characterised by a less favourable energy scenario than in 2023, by major tariff revisions affecting the Networks BU (with the positive update of regulatory parameters), the complete recovery of Market margins 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 (-31.6% on 2023) and, consequently, in electricity and heat generation margins; this had a major negative impact on EBITDA (EUR -71 million), which was partially absorbed (EUR +41 million) by the higher quantities produced, particularly by hydroelectric production (+49.2% vs 2023), which benefited from an improvement in hydraulic levels during the period and photovoltaics due to the contribution made by new plants (+48.2% vs 2023). Marketing activities were very positive indeed, particularly in relation to the sale of electricity, which benefited from a significant recovery in margins (EUR +45 million). A positive contribution to the margin is generated by organic growth related to tariff increases as a result of the investments made on the networks in recent years (EUR +7 million) and tariff revisions at the start of the year (EUR +39 million), which were more than offset by the drop in non-operating production of plants in the environmental sector (EUR -28 million) and the completion of energy efficiency works (EUR -31 million).

Finally, perimeter changes related to the consolidation of Sienambiente (as of January 2024) and AcquaEnna (as of June 2023), amounting to approximately EUR 10 million, 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 +48.4%, Networks +25.8%, Environment -5.6% and Energy -30.1%.

Operating profit (EBIT) amounted to EUR 280.6 million, an increase of +13.1% compared to EUR 248.1 million for the first half of 2023. Depreciation and amortisation increased by approximately EUR 33 million during the period, due to the start-up of new investments and the expansion of the scope of consolidation, lower accruals to the provision for risks of approximately EUR 34 million, mainly due to the cessation of the extraordinary provisions made as a consequence of the “Sostengi ter” Decree Law in 2023, and which are not repeatable, and lesser provisions made for bad debt in the amount of approximately EUR 2 million.

Group net profit attributable to shareholders amounted to EUR 145.2 million, an increase (+2%) compared to EUR 143.0 million at 30 June 2023. The slight growth is entirely due to the increase in the tax rate. Last year, the Group's tax rate was significantly lower, due to the non-taxability of tax credits recognised to combat the costs of energy for companies. Earnings before tax (EBT) have in fact grown by 12.6% on last year.

Net financial debt stood at EUR 4,013 million as at 30 June 2024, varying slightly (+2%) from EUR 3,933 million at 31 December 2023. Operating cash flow fully covers technical and financial investments for the period, while net working capital, which benefited from the assignment of Superbonus receivables in the amount of almost EUR 250 million, increased temporarily due to an increase in receivables from invoices to be issued in regulated businesses, in the energy supply chain and connected to the Recovery and Resilience Plan investments.

undergoes a temporary increase due to the increase in receivables from invoices to be issued in regulated businesses, in the energy supply chain and inherent in NRP investments.

Gross investments for the period amounted to EUR 369 million, down (-8%) compared to the same period of 2023, of which EUR 19 million related to the consolidation of Sienambiente and EUR 5 million relating to the acquisition of authorisations to build 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 gas and electricity networks, the purchase of collection vehicles and equipment, and the construction of waste treatment and renewable generation plants.

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