Today, the Board of Directors of Iren S.p.A. approved the update of the business plan to 2030.

'The newly approved Business Plan is grounded on solid and concrete foundations, thanks to the optimisation of our business model, selective investments, and rigorous financial discipline.' - declares Luca Dal Fabbro, Executive Chair of the Iren Group - 'We have mapped out a sustainable and measurable growth path that will lead us to an expected EBITDA in 2030 of Euro 1.6 billion, to which we can add further potential upside linked to organic and inorganic development opportunities that the Group is now in a position to seize. At the same time, our strategy confirms our commitment to a growing dividend policy, +8% per year until 2027 and +6% from 2028 to 2030, reflecting our confidence in the Plan's ability to generate value for all stakeholders'.

'The approval of the new Business Plan marks the start of a targeted transformation phase that will modify our business model, making it even more efficient, more focused, and more oriented towards value creation. In particular, through the Euro 6.4 billion investment plan, we will strengthen the activities that express the greatest potential for growth and guarantee stability and visibility in the medium to long term, such as network services and waste-to-energy plants,' says Gianluca Bufo, CEO of the Iren Group . 'Alongside this is a clear, defined, and fully implementable plan of synergies, which will allow us to recover profitability and further simplify the Group's operating structure. Thanks to the soundness of the industrial drivers and the quality of the initiatives we have launched, we can confirm concrete and measurable growth with a CAGR of EBITDA of 4% and Net Profit of 7%'.

'The approval of the Transition Plan to 2040, alongside the business plan, marks a strategic milestone for our Group: a clear and ambitious path that, thanks to a targeted investment plan, will enable us to become even more sustainable, optimise resource utilisation, and significantly reduce our environmental impact by halving our carbon intensity. - says Moris Ferretti, Executive Deputy Chair of the Iren Group - It is a long-term vision that combines industrial responsibility and innovation, with the aim of generating lasting value for the territories in which we operate and for future generations. With this Plan, we reaffirm our commitment to supporting the energy and environmental transformation, contributing to building a cleaner, more resilient, and inclusive future by maximising the value of human capital and integrating approximately 2,400 new people into the Group to support the defined change.'

STRATEGY

The three strategic pillars outlined in previous business plans continue to represent the framework for capital allocation choices and embody the Group's guiding values. Ecological transition, territorial enhancement, and service quality remain the pillars of our development path, now interpreted in light of the evolving competitive and regulatory dynamics.

Iren's commitment to the ecological transition takes an even more targeted and resilient approach. In response to the altered market conditions and the authorisation duration for developing new renewable capacity, Iren will prioritise initiatives that safeguard the environment and the ecosystems in which it operates, such as implementing systems to maximise heat recovery for district heating at waste-to-energy plants or building 5 new wastewater treatment plants, using natural resources in a conscious and sustainable way, and giving new life to waste by recovering materials and energy. This approach protects profitability, improves the quality of the investment portfolio and ensures growth consistent with sustainability metrics.

The creation of value for the territories translates into the development of infrastructure essential to local growth and the strengthening of the Group's territorial presence. The multi-utility model enables the exploitation of new opportunities, broadens the range of services offered in a synergistic way, supports growth, and promptly addresses the needs of the communities where Iren operates.

The quality of the service remains the guiding principle that drives the Group's actions. Iren seeks to bolster the resilience of distribution networks to minimise service disruptions, enhance the customer experience through widespread local presence, and optimise business processes to boost efficiency.

In line with the strategic guidelines, the three pillars are articulated today within an evolved and more focused business model. The Group's transition from an 'extended multiutility' to a 'focused multiutility' will occur through more selective capital allocation, prioritising core businesses. This strategy aims to maximise generated value by concentrating resources on the highest-return activities and reducing involvement in areas where we have not yet developed a competitive advantage.

The business plan to 2030 is integrated into a transition plan to 2040, which sees Iren committed to a concrete and measurable long-term path, in line with the European Sustainable Development Goals. The ESG commitments and targets are developed according to the guidelines of the ecological 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. For each identified performance indicator, Iren has set quantitative improvement targets for 2028, 2030, and 2040, outlining a clear and trackable path over time. In pursuit of these targets, the commitment has been assessed in terms of investments, with future technological developments like CO2 capture also envisaged.

INVESTMENT PLAN

The business plan update envisages gross technical investments of Euro 6.4 billion, of which 40% relates to development investments and 60% to maintenance. Such investments include, accounting for 23% of the total, maintenance interventions for network-regulated businesses (RAB) related to the integrated water cycle, electricity network, and gas network. Maintenance investments also encompass all investments to ensure full efficiency of the assets and the retention of the current customer base. The current investment plan is characterised by projects developing network-regulated businesses, particularly in integrated water services and electricity distribution. It includes constructing 3 waste-to-energy plants that will allow the Group to complete the municipal waste chain with energy recovery, installing aerotherms on cogeneration and thermoelectric plants, and expanding the district heating network, against a backdrop of a slowdown in the installation of new renewable capacity and additional waste treatment capacity for material recovery. The visibility of returns is based on the high percentage of investments in regulated businesses, which account for 80% of the total. Finally, 70% of the Euro 4.3 billion investment is allocated to sustainable projects aligned with the European Taxonomy, with 33% dedicated to sustainable water resource management, 28% to supporting the transition to resilient cities, 26% to decarbonisation, and 13% to the circular economy.

In summary, the plan is characterised by a balanced distribution of investments over the years, low execution risk, high predictability of results and, high investment in sustainable projects/activities.

[More information can be found in the attached document]