Margins growing significantly 

 

The Business Plan calls for a substantial doubling of EBITDA with the achievement of 1.8 billion Euro in 2030, boosted by the positive contribution of all business sectors. The greatest support for growth is provided by regulated and semi-regulated activities with a contribution that remains constant over the plan at 70%. 

 

The positive increase in EBITDA is also reflected in Net Profit, expected to be 500 million Euro in 2030. The growth margin, visible in the graph, generates value in both the short and long term. 

 

EBITDA

Mn Eur

Growth is determined by the following drivers:

 

  • Organic growth +600m€, as an effect of the investment plan and in particular due to the contribution of the integrated water service and district heating development, increased waste treatment and recovery capacity, new renewable capacity and the wide range of energy efficiency services offered, and the expansion of the energy customer base;
 
  • Inorganic growth +220m€, as an effect of planned M&A activity that includes 1.8 billion Euro for acquisitions and tenders particularly in the Networks and Waste Management BU;
 
  • Performance improvement +120m€, net of emerging costs to support development, mainly related to ICT and staff;

 

  • Neutral the combined effect of energy scenario and termination of incentives;

 

  • Asset rotation -60m€, related to the divestment of thermoelectric generation plants not functional for district heating.

 

 

Performance improvement1

Mln Eur

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The commitment and strategy for cash management

 

Iren's commitment to a balanced capital structure aimed at maintaining the current Fitch rating of BBB is confirmed. Despite the significant investment plan, the financial profile is expected to be balanced in terms of NFP/EBITDA ratio which is expected to remain below 3.5x over the plan period.

 

The financial requirements in the plan period are expected to remain constant with a slight increase in the last three years. These financing needs will be managed with the most suitable instruments to ensure an adequate diversification of sources and investors, favouring the use of sustainable finance instruments. The average cost of debt is expected to fall over the next 10 years, thanks to the favourable market rate scenario, sitting in a range of between 1.4% and 1.6%.

Financial requirements 

Mln Euro

Best-in-class in sustainable finance

2021 Data

63%
portion of sustainable debt

Decreasing financial cost

Debt structure: long duration and low variability

2021 Data

 

5,7 years

97%
Share of fixed-rate debt

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