27 slides from Infrastrutture Wireless Italiane's earnings presentation, May 7, 2024
Slide 1: Q1 2024 Financial Results
Q1 2024 Q1 2024 Financial Results May 7th,2024
Slide 2: Safe Harbor
Safe Harbor This presentation contains statements that constitute forward-looking statements. These statements mentioned repeatedly in this presentation and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth of the business
Slide 3: Q1 2024 results key messages
Q1 2024 results key messages Execution advances: resilient performance with high 1-digit revenue growth, margin expansion, leverage reduction Asset expansion: more New Sites, more DAS, more land owned underpinning a shared infra business model New Services up: strong growth YoY with emerging opportu
Slide 4: Q1 2024 results: execution advances
Q1 2024 results: execution advances High 1-digit revenue 2-digit margin Solid cash flow growth expansion generation +9% +11% €150m Organic Revenue Growth EBITDAaL Growth Recurring FCF CPI link, New sites, 72% margin 4.5x Net Debt / EBITDA New PoPs, New services (+1.4 p.p.) vs 4.7x at 1Q’23 and 4Q’23
Slide 5: New Sites: solid demand and delivery pace confirmed
New Sites: solid demand and delivery pace confirmed Total Macro Sites New Sites (k Sites) +4% (#Sites) YoY 24.1 24.3 +975 LTM 23.8 23.3 23.5 >1.5x YoY 315 225 230 85 205 135 55 65 45 5 230 130 170 165 160 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Anchors MSA Other BTS programs High
Slide 6: Anchor PoPs: pace in line with MSA commitments, higher PoPs from New Sites
Anchor PoPs: pace in line with MSA commitments, higher PoPs from New Sites Anchors – Total PoPs Anchors - New PoPs +6% (k PoPs) YoY (#PoPs) 40.8 41.4 39.6 40.2 38.9 +2.5k LTM 730 650 620 640 610 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Anchor clients: Highlights ▪ INWIT business m
Slide 7: OLOs' PoPs: 13% YoY growth driven by New PoPs
OLOs’ PoPs: 13% YoY growth driven by 350 New PoPs Other Clients – Total PoPs Other Clients - New PoPs MNOs, FWAs, Others +13% MNOs, FWAs, Others (k PoPs) YoY (#PoPs) 13.9 +1.6k 13.5 13.1 LTM 12.7 12.3 410 400 400 350 350 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 MNOs – FWA Other Se
Slide 8: New Services: +61% growth capturing market opportunity
New Services: +61% growth capturing market opportunity Growing asset base for indoor coverage New Services Revenues ~470 ~8.1k 1,000km (Eur m) +61% DAS Highway and Remote Units YoY Projects/Locations Roadway Tunnels (DAS, Small Cells) 15.8 14.3 11.5 11.7 New commercial wins in Q1 2024 8.9 STADIUM TR
Slide 9: P&L Q1 2024: solid start to the year
P&L Q1 2024: solid start to the year (Eur m) Q1 2023 Q4 2023 Q1 2024 YoY Highlights Total Revenues 233.6 247.1 254.6 9.0% ▪ 9% revenue growth driven by: One-off Revenues 0.2 0.2 - ▪ CPI: 5.4% avg 2023 figure applied to MSAs (no cap) and OLOs Recurring Revenues 233.4 246.9 254.6 9.1% ▪ MSA growth com
Slide 10: Cash flow: leverage reduction despite higher capex and shareholder remuneration
Cash flow: leverage reduction despite higher capex and shareholder remuneration (Eur m) Q1 2024 cash flow build up Highlights ▪ €150m RFCF (+10% YoY) with 64% cash conversion ▪ NWC about stable in Q1; positive in FY’24E RFCF growth +10% YoY ▪ Structurally low recurring capex ▪ No taxes cash out (pay
Slide 11: Business model ensures consistent delivery in an evolving scenario
Business model ensures consistent delivery in an evolving scenario Evolving External Scenario ▪ Continued mobile data growth ▪ Higher EMF limits, still below EU standards ▪ Structural need to improve 5G coverage and densification ▪ Italian TLC industry under pressure and evolving 1 2 Best Tower Asse
Slide 12: Annex
INWIF Annex
Slide 13: ESG: overview of Ratings and Index Memberships
ESG: overview of Ratings and Index Memberships ESG Index Membership 13
Slide 14: Cost efficiency across the board
Cost efficiency across the board FY 2023 Results Presentation - Updated % Land Owned EBITDAaL Margin % ▪ Continued work on lease cost, tracking ahead of cost reduction targets 2023A 2026E 2023A 2026E Ground Lease ▪ Strong track record in lease cost reduction despite inflation link cost kicking-in an
Slide 15: Asset and cost optimization continues with tangible results
Asset and cost optimization continues with tangible results Tenancy ratio Lease cost per site1 EBITDAaL per site2 (x) (€k) (€k) 28.4 29.7 30.3 8.3 7.9 8.1 2.19 2.23 2.26 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 Q1'23 Q4'23 Q1'24 EBITDAaL 71% 72% 72% margin Best in class tenancy ratio Strong track record
Slide 16: Strong protection in inflationary environment
Strong protection in inflationary environment FY 2023 Results Presentation Inflation impact on key variables % of 2023 Key Figures CPI link mechanics Revenues Inflation sensitivity: Revenues 100% +1% inflation equals >€5m EBITDAaL 100% linked to prior-year avg CPI Anchor MSA macro site 82% (0% floor
Slide 17: 2024-2026 Business Plan Guidance Confirmed
2024-2026 Business Plan Guidance Confirmed 2026E EUR m 2023A 2024E (prior guidance) 2026E Highlights • High 1-digit organic growth, among the best in industry Revenues 960.3 1,030 – 1,060 >1,200 1,160 – 1,240 • +3% Sites CAGR, +6% PoPs CAGR, >30% New Services CAGR • Slight EBITDA margin expansion EB
Slide 18: PoPs volumes assumption: >6% CAGR driven by +3% New Sites CAGR
PoPs volumes assumption: >6% CAGR driven by +3% New Sites CAGR FY 2023 Results Presentation New Macro Sites – MSA and other BTS programs >3% CAGR % ▪ Tenancy Ratio at 2.5x in 2026E vs 2.23x in 2023 >1.2k ~1.0k ▪ “MNO only” tenancy ratio at 1.9x in 2023E ▪ 3 BTS programs: MSA, Next Gen EU, Open Fiber
Slide 19: New Services: Material opportunity in DAS Indoor Coverage Solutions
New Services: Material opportunity in DAS Indoor Coverage Solutions FY 2023 Results Presentation - ▪ Critical need for seamless outdoor and indoor connectivity within enterprises, large venues, public spaces and transport infrastructure Updated ▪ DAS Technology (Distributed Antenna System): multiten
Slide 20: Continuous lease cost optimisation driving margin expansion
Continuous lease cost optimisation driving margin expansion FY 2023 Results Presentation Real Estate Transactions % of Land Owned Lease Cost per Site Total Revenues and EBITDAaL per site (#) (%) €k €k 5% 7% CAGR CAGR ’23-’26 ’23-’26 ~46 2.2k 1.8k >5.0k >20% 8.3 39.8 8.0 36.8 <7.5 ~35 28.4 ~50% 25.3
Slide 21: CapEx plan with 2-digit IRR, peak in 2024 due to New Sites
CapEx plan with 2-digit IRR, peak in 2024 due to New Sites FY 2023 Results Presentation Capex Plan supporting material EBITDAaL growth ’24-’26 Capex Breakdown CapEx EBITDAaL Growth1 (Eur m) (Eur m) Maintenance ~800 ~1,450 Other New Sites and upgrade ~30% >430 EBITDAaL €~800m Growth / Capex CapEx SC/
Slide 22: Data book: Cumulated P&L
Data book: Cumulated P&L 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) Revenue
Slide 23: Data book: Quarterly P&L
Data book: Quarterly P&L Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Currency: €m (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec)
Slide 24: Data book: Balance Sheet
Data book: Balance Sheet 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) Goodwil
Slide 25: Data book: Cash Flow
Data book: Cash Flow 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) EBITDA Recu
Slide 26: Data book: Operational KPIs
Data book: Operational KPIs 1 3 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 Figures in #k (Jan-Mar) (jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan
Slide 27: More questions? Ask Investor Relations
More questions? Ask Investor Relations Fabio Ruffini Head of Investor Relations & Corporate Development fabio.ruffini@inwit.it ir@inwit.it