Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — Q3 2022 Earnings Presentation
27 slides from Infrastrutture Wireless Italiane's earnings presentation, Oct 27, 2022
Slide 1: Q3 2022 Financial Results
Q3 2022 Q3 2022 Financial Results October 27th 2022
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: Key messages
Key messages Organic growth moving forward – EBITDAaL and Recurring Free Cash Flow up in the 2-digits Solid industrial KPIs – tenancy ratio at 2.12 driven by OLOs – new sites pick-up in Q4 Well positioned to navigate current scenario – committed, diversified, inflation-linked growth New Governance –
Slide 4: New Governance: another step in the evolution of INWIT
New Governance: another step in the evolution of INWIT June 2015 March 2020 October 2022 Governance Structure MNO MNO Majority Control Co-control Independent BoD 1.0% Free Float Free Float 25.0% Shareholding 40.0% Free Float 37.5% TIM 33.2% 35.6% Daphne 3 Structure 60.0% TIM Central Tower 37.5% Voda
Slide 5: Q3'22 results: continued progress
Q3’22 results: continued progress High-single-digit Further margin High cash revenue growth expansion conversion +8.9% +10.8% +26.6% Organic Revenue Growth YoY EBITDAaL RFCF growth YoY Growth YoY New PoPs, new sites, CPI-link 62% cash conversion and other revenue growth 68% margin 5.4x Leverage (5.6
Slide 6: Anchor PoPs: strong demand for New Sites confirmed
Anchor PoPs: strong demand for New Sites confirmed Anchors – Total PoPs Anchors - New PoPs +7% (k PoPs) YoY (PoPs) +2.4k 37.5 LTM 36.9 36.4 700 35.8 630 620 540 560 35.1 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Anchor clients: Committed growth in Anchors MSA – New Sites and New Po
Slide 7: OLOs' PoPs: continued growth driven by FWA and Utilities
OLOs’ PoPs: continued growth driven by FWA and Utilities Other Clients – Total PoPs Other Clients - New PoPs MNOs, FWAs, OTMOs MNOs, FWAs, OTMOs (k PoPs) +16% +1.7k YoY LTM 11.4 10.9 540 450 470 10.4 10.2 300 9.8 230 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 MNOs – FWA OTMO Utiliti
Slide 8: New Services: improving tenancy ratio on installed asset base
New Services: improving tenancy ratio on installed asset base New Services Revenues Dedicated Coverage – Addressable Mkt (€m) (locations) +39% >3k locations addressable YoY 8.4 7.5 7.6 7.9 280 1,200 750 6.0 Hospitals Public admin. Corporate 3.4 250 280 900 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Transpo
Slide 9: P&L: continued delivery in all metrics
P&L: continued delivery in all metrics (€m) Q3 2021 Q2 2022 Q3 2022 YoY Q3 2022 Organic Revenue growth highlights Total Revenues 198.1 210.7 214.8 +8.4% One-off Revenues 0.9 0.0 0.0 ▪ MSA commitments confirmed, phasing to accelerate in Q4’22 Recurring Revenues 197.2 210.7 214.8 +8.9% ▪ Positive volu
Slide 10: Cash flow: structurally high cash conversion confirmed
Cash flow: structurally high cash conversion confirmed Q3 2022 cash flow build up (€m) Highlights ▪ +26.6% RFCF growth year on year ▪ 62% conversion to EBITDA ▪ Structurally limited recurring capex ▪ Cash taxes paid in Q2 and Q4 ▪ Stable NWC in Q3/9M 2022, in line with expectations EBITDA Recurring
Slide 11: 2022 and 2023-2026 Guidance confirmed
2022 and 2023-2026 Guidance confirmed (€m) 2022 2023 2026 2023 Revenue acceleration with high degree of visibility Revenue 850-860 >960 1,100+ 1. Higher MSA commitments ▪ more New Sites, more Common Grid PoPs EBITDA 775-785 >880 1,000+ 2. Continued OLOs growth ▪ recent FWA and OTMO agreements improv
Slide 12: Well positioned in the current environment
Well positioned in the current environment ▪ Best in class assets - macro grid and micro grid ecosystem Best Tower ▪ Leading market share in a developed tower market assets ▪ Expanding infrastructure at attractive returns ▪ Two Tier-1 Anchors - partner 5G evolution – best in class MSAs ▪ OLOs multip
Slide 13: Annex
Annex 13
Slide 14: ESG: overview of Ratings and Index Memberships
ESG: overview of Ratings and Index Memberships ESG Index Membership 14
Slide 15: Well positioned in current inflationary environment
Well positioned in current inflationary environment Inflation impact on key variables % of 2021 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 85% (0% floor, no cap) OLOs, New Ser
Slide 16: 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 (€k) (€k) 25.0 25.8 23.4 8.6 8.4 8.4 1.98 2.09 2.12 3 Q3'21 Q2'22 Q3'22 Q3'21 Q2'22 Q3'22 Q3'21 Q2'22 Q3'22 EBITDAaL 67% 68% 69% margin Best in class tenancy ratio Strong track record Ma
Slide 17: Tax schemes: details on financial impacts
Tax schemes: details on financial impacts Recap of two tax schemes approved – mechanics and benefits in line with expectations Scheme details Upfront payment Cash benefits NPV IRR • Presented in November 2020 • 16% of goodwill • €568m lower taxes paid €150m • 22% 1 • Based on Law Decree 185/2008 • €
Slide 18: Financial Debt: No refinancing needs before 2025
Financial Debt: No refinancing needs before 2025 Key debt maturities as at Sept 2022 (€m) 1,200 1,000 800 600 400 200 0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 €40m Bilateral loan €500m ESG KPI Linked TL Drawn RCF Undrawn RCF €1bn BOND 2026 €750m BOND 2028 €500m BOND 2031 €250m BEI lo
Slide 19: Leadership in white areas reinforced by two significant agreements
Leadership in white areas reinforced by two significant agreements July 2022: Open Fiber FWA agreement June 2022: Next Gen EU 5G for Italy tender ▪ FWA a structural feature of Italian TLC market ▪ INWIT acting as a digitalization enabler, supporting mobile operators in the reduction of digital divid
Slide 20: Strong cash generation and balance sheet optionality
Clear capital Strong cash generation and balance sheet optionality allocation framework Highlights RFCF guidance (mid-point) ▪ Visible organic RFCF growth driven by: (€m) ▪ EBITDAaL expansion ▪ Neutral NWC cycle ▪ Low recurring capex ▪ Tax benefits High-end of range >700 ▪ Capex plan with double-dig
Slide 21: Clear framework for deployment financial flexibility
Clear capital Clear framework for deployment financial flexibility allocation framework 1 More organic growth capex (on top of >€1bn capex plan) ▪ Real Estate / Land Buyout Focus Balance sheet flexibility: deployment framework ▪ Road/Rail/Harbour infrastructure (DAS) areas ▪ Small portfolios of macr
Slide 22: 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 Currency: €m (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) Revenues 103.0 184.4 186.1 189.9 190.2 192.9 198.1 203.9 207.0 210.7 214.8 TIM - MSA m
Slide 23: Data book: Cumulated P&L
Data book: Cumulated P&L 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) Revenues 103.0 287.4 473.5 663.4 190.2 383.1 581.2 785.1 207.0 417.7 632.5 TIM - MSA macro sites1
Slide 24: Data book: Balance Sheet
Data book: Balance Sheet 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) Goodwill 6,712 6,113 6,113 6,113 6,113 6,113 6,113 6,147 6,147 6,147 6,147 Tangible assets 783 77
Slide 25: Data book: Cash Flow
Data book: Cash Flow 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-2un) (Jan-Sep) EBITDA Recurring 86.3 259.5 432.4 602.4 172.4 348.2 528.1 714.1 189.0 380.7 577.9 Recurring CAPEX (3.
Slide 26: Data book: Operational KPIs
Data book: Operational KPIs 1Q20 2Q20 3Q20 4Q20 1Q21 1 2Q21 3Q21 4Q21 3 1Q22 2Q22 3Q22 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 Figures in #k (Jan-Mar) (jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) Tenancy Ratio 1.96x 1.81x 1.84x 1.
Slide 27: More questions? Ask Investor Relations
More questions? Ask Investor Relations Fabio Ruffini Head of Investor Relations fabio.ruffini@inwit.it ir@inwit.it 27
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