Rai Way Spa · MIL:RWAY
Rai Way Spa — FY2020 Earnings Presentation
23 slides from Rai Way Spa's earnings presentation, Mar 18, 2021
Slide 1: 2020FY Results Presentation
2020FY Results Presentation 18 March 2021
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements regarding future events and the future results of Rai Way that are based on current expectations, estimates, forecasts, and projections about the industries in which Rai Way operates, as well as the beliefs a
Slide 3: Rai Way participants
Rai Way participants ● Aldo Mancino, Chief Executive Officer ● Adalberto Pellegrino, Chief Financial Officer ● Giancarlo Benucci, Chief Corporate Development Officer 2020FY Results Presentation 3
Slide 4: Sequential growth since IPO
Sequential growth since IPO Mln Eur; % Adj. EBITDA (2019-20 pre and after leases1) Adj. EBITDA margin (2019-20 pre and after leases1) Pre leases Pre leases 136,1 After leases After leases 131,2 +550bps 60,6% 118,3 59,3% 115,5 109,3 111,3 53,4% 105,1 50,7% 51,5% 51,7% 121,8 126,2 56,2% 54,3% 55,0% 20
Slide 5: Key messages on 2020
Key messages on 2020 ● 2020FY results above expectations, also helped by temporary cost reduction from pandemic safety and recovery measures: o Adjusted EBITDA up +3,7% with profitability at 60,6% (+130 bps) RESULTS o Development capex ramping up driven by refarming o Highest recurring cash generati
Slide 6: Role of traditional TV confirmed
Role of traditional TV confirmed ● Increased video consumption fuelled by the pandemic impacted all platforms, confirming the resilience and social role of traditional TV ● New platforms not replacing but complementing DTT in viewers’ consumption habits, with traditional TV supported by live events
Slide 7: Update on refarming
Update on refarming Refarming Capex evolution Main activities ● National MUX coverage extension o Ca. 400 new sites activated as of December 2020 and 500+ as of today (out of 600 in the final configuration) ca. € 45m ● New macro regionalized UHF “DVB T2” MUX & National spent so far MUX upgrade to DV
Slide 8: 2020FY Financial highlights
2020FY Financial highlights Mln Eur; % % YoY growth Core Revenues Adjusted EBITDA Net Income Adjusted EBITDA margin +1,4% +3,7% +1,0% 221,4 224,5 131,2 136,1 63,4 64,0 59,3% 60,6% 59,4% 2019FY 2020FY 2019FY 2020FY 2019FY 2020FY Capex (1) Net debt (Net Cash) Cash conversion(2) Net Debt / 1-y rolling
Slide 9: Core Revenues
Core Revenues Mln Eur; % % YoY growth ● Excluding one-off items, recurring third-party revenues only marginally down +1,4% (-0,9%) vs 2019 driven by: 221,4 224,5 o Mid-single-digit growth of non-MNOs, supported by FWA Third-Parties 33,2 33,2 -0,1% o More balanced third-party customers portfolio (non
Slide 10: Opex (excluding non-recurring)
Opex (excluding non-recurring) Mln Eur; % % YoY growth Stable opex underlying performance when excluding non-core -2,4% and temporary impacts (mainly from pandemic measures) 91,1 88,9 ● Also excluding capitalization and non-core items, underlying Personnel 45,3 costs 45,5 0,4% personnel cost broadly
Slide 11: P&L
P&L Eur Mln, % 4Q 2019 4Q 2020 % YoY 2019FY 2020FY % YoY Core Revenues 55,7 56,4 1,4% 221,4 224,5 1,4% ● 2020 Net Income up by 1,0% at € 64,0m as Other Rev enues & income 0,9 0,5 0,9 0,5 a result of: Adj. EBITDA 30,6 31,5 2,9% 131,2 136,1 3,7% % margin 55,0% 55,9% 59,3% 60,6% o Higher Adjusted EBITD
Slide 12: Net Debt bridge
Net Debt bridge Mln Eur Net Debt/ 1y rolling Adj. EBITDA 0,34x 46,1 0,07x 9,5 63,3 Including € 48,3m development capex, of IFRS-16 Debt 35,4m which ca. € 4m in small M&A 20,0 Gross Debt 15,4m Cash&Eq -4,7m (5,8) 8,8 0,5 24,3 (135,1) 60,6 Net Debt EBITDA Capex(1) Taxes(2) Financial Δ NWC Funds & Buyb
Slide 13: 2020 Recurring cash generation and dividend proposal
2020 Recurring cash generation and dividend proposal Mln Eur Dividend proposal 20 ● Dividend proposal of 23,85 €cent/share (pay-out ratio of 100% of Net Income), with a dividend yield(3) of 5,0% 126 Buyback ● Including the proposed dividend for 2020, approx. € 357m (1) distributed to Shareholders si
Slide 14: 2023 Sustainability Plan reinforces the commitment towards ESG+I
2023 Sustainability Plan reinforces the commitment towards ESG+I ENVIRONMENT SOCIAL GOVERNANCE INNOVATION ● Reduce energy ● Enhance diversity and ensure ● Ensure the respect of Privacy ● Enable the technological consumption inclusion and work-life and Data Security and digital evolution of and green
Slide 15: Guidance 2021
Guidance 2021 ● Outlook based on a scenario with 3 MUX managed for RAI after refarming and on current visibility on the evolution of pandemic emergency: ADJUSTED EBITDA ● Growth of Adjusted EBITDA supported by step-up in RAI contract in 2H, although limited by: - Tough comparison with 2020 figure po
Slide 16: Unchanged ambitions
Unchanged ambitions In a potential inflationary environment, Contractualized revenues Resiliency of business model direct benefit from CPI-linked contracts (1% CPI → ca. 2m EBITDA) provide high visibility and cash proven also during pandemic Limited impact in case of rising interest generation emerg
Slide 17: Q&A session
Q&A session 2020FY Results Presentation 17
Slide 18: Contacts
Contacts - Investor Relations +39 06 331 73973 +39 06 331 74815 investor.relations@raiway.it 2020FY Results Presentation 18
Slide 19: Appendix
Appendix 2020FY Results Presentation 19
Slide 20: Balance sheet
Balance sheet Mln Eur Including rights of use for leasing under IFRS-16 (€ 32,5m) (13,8) (26,6) 210,9 46,1 251,4 164,8 Net Fixed Assets(1) Net Net Funds(2) Net Invested Net Debt Equity Book Value Working Capital Capital 1) Including long-term financial items and the rights of use for leasing introdu
Slide 21: Detailed summary of Income Statement
Detailed summary of Income Statement (€m; %) 4Q19 4Q20 FY19 FY20 Core revenues 55,7 56,4 221,4 224,5 Other rev enues and income 0,9 0,5 0,9 0,5 Purchase of consumables (0,4) (0,4) (1,2) (0,9) Cost of serv ices (12,1) (11,2) (42,2) (39,7) Personnel costs (12,6) (12,8) (45,3) (46,5) Other costs (0,9)
Slide 22: Summary of Balance Sheet
Summary of Balance Sheet (€m) 2019FY 2020FY (€m) 2019FY 2020FY Non current assets Shareholders' Equity Tangible assets 177,6 200,9 Share capital 70,2 70,2 Rights of use for leasing 36,2 32,5 Legal reserv es 14,0 14,0 I ntangible assets 14,3 15,9 Other reserv es 37,1 37,1 Financial assets, holdings a
Slide 23: Summary of Cash Flow Statement
Summary of Cash Flow Statement (€m) 4Q2019 4Q2020 FY2019 FY2020 Profit before income taxes 19,4 18,3 88,8 88,3 Depreciation, amortization and w rite-dow ns 10,8 12,6 42,4 45,4 Prov isions and (releases of) personnel and other funds 1,5 2,0 2,4 5,1 Net financial (income)/expenses 0,2 0,4 1,0 0,9 Othe