Economic-financial highlights

• EBITDA: EUR 1.87 billion by 2030 (+800 million compared to 2022) with a CAGR of 7% thanks to organic growth, consolidation and synergies 
• Gross capex: EUR 10.5 billion 
• Net debt/EBITDA: 2.7x at 2030 
• Group net profit: approximately EUR 460 million at 2030 (EUR +235 million compared to 2022)
• Dividend: confirmation of dividend policy until 2025, followed by a pay-out ratio of 50-60% Industrial highlights 
• Sustainable Investments: EUR 7.5 billion, or 80% of the organic investments over the Plan and over EUR 7 billion eligible according to the European Taxonomy 
• Organic growth: EUR +580 million in EBITDA, supported by investments to maximise network quality and efficiency, to increase waste material recovery capacity, to develop renewable generation sources including through the creation of energy communities, to grow retail customers 
• External growth: EUR +170 million in EBITDA deriving from the consolidation of companies already invested in, participation in tenders for gas and integrated water services and waste collection 
• Disposal of assets: EUR -60 million in EBITDA from the disposal of non-core assets
• Synergies: EUR +100 million in EBITDA, mainly related to Performance Improvement initiatives and economies of scale
• Strategic options not included in the plan: 1.5 billion additional investments in regulated businesses, mainly in Southern Italy, made with financial partners ▪ Recruitment: planned entry into the Group of 3,200 workers 

Luca Dal Fabbro, Chair of the Group,said: "The update of the strategic plan to 2030 once again confirms Iren's focus on the territories and its stakeholders. The energy context urges us to plan for the future with three key strategic components in mind: energy security, competitiveness and, of course, sustainability, the driving force behind all our actions. Over the next eight years, Iren will strengthen its role as a reference partner for the territory and Public Administrations with the aim of strengthening its presence in historical geographies and expanding its boundaries towards new strategic areas. Each of Iren's actions will continue to be underpinned by certain fundamental rationales, such as resource recovery and decarbonisation, while also leveraging new technologies and highly innovative projects."

Gianni Vittorio Armani, Chief Executive Officer and General Manager of the Group, said: "Today, not only do we confirm the strategic pillars of the plan, i.e. ecological transition, territoriality and service quality, but we are able to strengthen them thanks to a new investment plan of EUR 10.5 billion to 2030 (EUR +200 million compared to the previous plan for the period 2023-2030). Energy communities, offshore wind and a further push for the territorial expansion of concession services to help overcome the country's infrastructure gap are the hallmarks of this Plan update, which translates into the achievement of 3.6 GW of managed renewable capacity and EBITDA growth to EUR 1.9 billion by 2030, while paying the utmost attention to maintaining investment grade ratings from rating agencies. In addition, we have a basket of EUR 1.5 billion of further investments already identified in the area of water service and environment in southern Italy, to be activated with financial partners. At the same time, human capital will be valorised thanks to the recruitment of approximately 3,200 new workers who will join the Group."

STRATEGY

Iren's growth strategy for the next eight years continues to be consistent with the sector's main macrotrends, i.e. decarbonisation and the development of renewables, the circular economy, energy efficiency and the safeguarding of natural resources. However, unlike the previous plan, following the events of 2022, the achievement of many macro-objectives has required an acceleration that is reflected in a temporal rescheduling of investments. In particular, energy independence, through the development of renewable capacity, the safeguarding of scarce resources such as water, and the measures necessary to counter the increase in bill prices for customers have become priority actions for a group with the ambition to be the reference partner in the area and the first choice of stakeholders for the highest levels of service quality offered. The three strategic pillars of the previous plan are therefore confirmed: the green transition with a progressive decarbonisation of all activities and the strengthening of the leadership in the circular economy and in the sustainable use of resources, the local presence with an extension of the perimeter in the territories of reference, the creation of energy communities and the ability to create a system with the territory, making its know-how and available to the Country, the service quality through the improvement of performance and the maximisation of customer/citizen satisfaction levels. 

A strongly sustainable strategic vision, with the definition of precise medium- and long-term targets, in line with the European Sustainable Development Goals and validated by the Science Based Target initiative. The ESG commitments and targets are developed according to the guidelines of the green transition and the centrality of communities and people and are organised according to 5 focus areas: decarbonisation, circular economy, water resources, resilient cities and people.

INVESTMENT PLAN

The new business plan envisages a total capex amount of EUR 10.5 billion with a slight increase of about EUR 200 million compared to the previous plan for the period 2023-2030. Almost 60%, equal to approximately EUR 6.1 billion, is made up of development investments, intended to favour the growth in size of the Group, mainly relating to the development of renewables combined with the growth of the retail customer portfolio, materials, the extension of district heating networks and energy community projects. Investments for external growth, amounting to 12% or EUR 1.2 billion, are earmarked for the consolidation of investee companies, participation in gas, water service or waste collection tenders in strategic areas of the country. Finally, the remaining 30%, amounting to approximately EUR 3.2 billion, is earmarked for maintenance investments. Moreover, 70% of cumulative investments are destined for regulated or semi-regulated sectors, in order to upgrade, modernise and digitalise network services, with particular focus on purification plants, to extend district heating and to improve the quality of the urban waste collection service with the aim of increasing the recovery of materials in own plants. 80% of the organic investments, amounting to approximately EUR 7.5 billion, are directed to projects that contribute to the achievement of the sustainability targets set, in particular to support the resilience of cities and for decarbonisation projects. More than EUR 7 billion (75% of organic investments) are eligible for the European Taxonomy.

FURTHER STRATEGIC OPTIONS (not included in Plan)

In addition to the investments included in the plan, Iren has a portfolio of further clearly identified projects worth EUR 1.5 billion, particularly in the water service and waste cycle in southern Italy. These investments will be realised through financial partnerships, without the consolidation of assets by Iren, but through developing and operating the plants.