Iren (IRE) Investor Day 2024 summary

Strategic direction and capital allocation

• Updated 2030 plan emphasizes disciplined growth, financial resilience, and capital allocation toward regulated businesses, reflecting market and regulatory changes and higher cost of capital.

• 94% of €8.2bn investments (2024–2030) are organic, with 80% allocated to networks, environment, district heating, and renewables under FER X/PPAs.

• Inorganic investments are reduced, focusing on completed or advanced deals (e.g., Egea, Sienambiente), with 85% of projects already identified.

• CapEx lowered from €9.1bn to €8.2bn, with a front-loaded plan and €600m of flexible investments identified for 2025–2027.

• Dividend policy ensures a floor and at least 8% CAGR in DPS until 2027, with a 60% payout ratio.

Business development and sustainability

• Egea acquisition strengthens presence in Piedmont and Liguria, accelerates growth, and is expected to be consolidated in 2026.

• Five focus areas: water resources, circular economy, decarbonization, resilience, and cities/people, with 70%+ of investments eligible for EU Taxonomy.

• 1.2 GW of new renewable capacity targeted, with 30% of investments in decarbonization and 20% in water resources, aiming for 20% network loss reduction by 2030.

• Circular economy initiatives aim to double recovered materials by 2030, expand sorted waste collection, and increase district heating network volume by 30%.

• Customer service and infrastructure quality prioritized, with expanded service portfolio, reduced outages, and new purification plants and network upgrades.

Financial guidance and operational efficiency

• EBITDA targeted at €1.8bn by 2030 (6% CAGR), with net profit to exceed €400m (7% CAGR), and 80% of EBITDA from regulated activities.

• NFP/EBITDA ratio to decline to 2.7x by 2030, maintaining rating headroom below 3.5x and supporting a strong BBB rating.

• Operational efficiencies and synergies to deliver €130m by 2030, with a 7% reduction in operational costs.

• Asset rotation and €600m of flexible investments provide financial flexibility, with minimized equity disposals and a low average cost of debt (<2.4%).

• Dividend policy extended to 2027, with annual dividend to grow by at least 8% or 60% payout of ordinary net profit, whichever is higher.