Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — Q1 2023 Earnings Presentation
23 slides from Infrastrutture Wireless Italiane's earnings presentation, May 9, 2023
Slide 1: Q1 2023 Financial Results
Q1 2023 Q1 2023 Financial Results May, 9th 2023
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 Continued execution - Q1 2023 results a first step of execution of Business Plan 2023-2026 Strong Industrial KPIs – record Q1 results for New Sites and New PoPs Organic growth edging higher – combination of CPI link + new tenants + new services Industry-leading margin expansion – effici
Slide 4: Q1'23 results: continued execution
Q1’23 results: continued execution Improving Further margin Leverage revenue growth expansion reduction +12.8% +18.9% -0.5x Organic Revenue Growth EBITDAaL Growth YoY Net Debt / EBITDA YoY CPI link, New sites, 71% margin 4.7x Net Debt / EBITDA New PoPs, New services (+3.6 p.p. YoY ) vs 5.2x at YE 20
Slide 5: Anchor PoPs: solid demand and growing quarterly pace
Anchor PoPs: solid demand and growing quarterly pace Anchors – Total PoPs Anchors - New PoPs +7% (k PoPs) (PoPs) +2.5k YoY LTM 38.9 +18% YoY 38.2 37.5 715 730 36.9 620 560 540 36.4 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Anchor clients: +560 Growth driven by Anchor MSA commitment
Slide 6: OLOs' PoPs: 18% growth driven by FWA and IoT
OLOs’ PoPs: 18% growth driven by FWA and IoT Other Clients – Total PoPs Other Clients - New PoPs MNOs, FWAs, Other Clients +18% MNOs, FWAs, Other Clients (k PoPs) YoY (PoPs) +1.9k 12.3 LTM 11.9 11.4 +52% 540 530 YoY 10.9 470 10.4 350 230 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 MN
Slide 7: New Services: growth driven by dedicated coverage projects
New Services: growth driven by dedicated coverage projects New Services Revenues Micro-grid assets and verticals (Eur m) +17% 1,000km YoY 7.3k Highway and Remote Units (DAS and Small Cells) Roadway Tunnels 8.9 8.4 8.3 7.9 7.6 Public Real Estate Education Healthcare Administration Q1'22 Q2'22 Q3'22 Q
Slide 8: Q1 2023 P&L: multiple sources of earnings growth
Q1 2023 P&L: multiple sources of earnings growth (Eur m) Q1 2022 Q4 2022 Q1 2023 YoY Highlights ▪ Revenue trend supported by CPI link (avg. 2022 inflation applied since Jan. 23) Total Revenues 207.0 220.5 233.6 12.8% ▪ Anchors: 100% CPI link (no cap, floor at 0%) One-off Revenues - 0.6 0.2 Recurring
Slide 9: Cash flow: strong cash conversion with RFCF growth expected to further pick-up
Cash flow: strong cash conversion with RFCF growth expected to further pick-up (Eur m) Q1 2023 cash flow build up Highlights ▪ €136.7m RFCF (+8% YoY) with 64% cash conversion ▪ NWC timing from Q4 2022 (positive NWC in FY 2023) ▪ Structurally low recurring capex ▪ Low cash taxes (payments in Q2 and Q
Slide 10: Q1 2023 a first step of execution of 2023 Business Plan key priorities
Q1 2023 a first step of execution of 2023 Business Plan key priorities New sites (#) >2x 130 >6x 480 Macro Grid 380 ▪ Material step-up in delivery – ▪ Improved end-to-end process New Sites 50 deployment ▪ Easing of permits process 70 ▪ Lower quarterly volatility expected 1Q22 1Q23 FY20 FY21 FY22 New
Slide 11: 2023-2026 Business Plan Guidance Confirmed
2023-2026 Business Plan Guidance Confirmed EUR m 2022A 2023E YoY % 2026E CAGR EURm 2022A High Revenues 853 960-980 14% >1,200 1-digit EBITDA 779 High 91% Stable ~92% EBITDA margin % 91% 1-digit EBITDAaL 587 71% +2 p.p. ~76% 2-digit EBITDAaL margin % 69% RFCF 491 595-605 +22% >730 2-digit +Buyback +B
Slide 12: Business Plan 2023 delivering an expanded value generation platform
Business Plan 2023 delivering an expanded value generation platform Strong RFCF generation Industry-leading organic growth with high visibility based on MSAs (EUR m) >2x >730 • High–single-digit organic revenue growth 1 317 • EBITDAaL margin expansion • Strong cash flow generation 2020PF 2026E Growt
Slide 13: Annex
INWIF Annex
Slide 14: ESG: overview of Ratings and Index Memberships
ESG: overview of Ratings and Index Memberships ESG Index Membership 14
Slide 15: Cost efficiency across the board
Cost efficiency across the board ▪ Continued work on lease cost, tracking ahead of cost reduction % Land Owned EBITDAaL Margin % targets 2022A 2026E 2022A 2026E Ground ▪ Strong track record in lease cost reduction despite inflation link Lease kicking-in and broader asset base cost ▪ Expansion of lan
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 (x) (€k) (€k) 27.2 28.4 24.4 8.6 8.0 8.3 2.05 2.16 2.19 Q1'22 Q4'22 Q1'23 Q1'22 Q4'22 Q1'23 Q1'22 Q4'22 Q1'23 EBITDAaL 67% 71% 71% margin Best in class tenancy ratio Strong track record
Slide 17: Well positioned in current inflationary environment
Well positioned in current inflationary environment Inflation impact on key variables % of 2022 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, no cap) OLOs, New Ser
Slide 18: Data book: Cumulated P&L
Data book: Cumulated P&L 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 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) Revenues 103.0 287.4 473.5 663.4 190.2 383.1 581.2 785.1 207.0 417.
Slide 19: 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 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) Revenues 103.0 184.4 186.1 189.9 190.2 192.9 198.1 203
Slide 20: Data book: Balance Sheet
Data book: Balance Sheet 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 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) Goodwill 6,712 6,113 6,113 6,113 6,113 6,113 6,113 6,147 6,147 6,14
Slide 21: Data book: Cash Flow
Data book: Cash Flow 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-2un) (Jan-Sep) (Jan-Dec) (Jan-Mar) EBITDA Recurring 86.3 259.5 432.4 602.4 172.4 348.2 528.1 714.1 189.0 3
Slide 22: Data book: Operational KPIs
Data book: Operational KPIs 1Q20 2Q20 3Q20 4Q20 1Q21 1 2Q21 3Q21 4Q21 3 1Q22 2Q22 3Q22 4Q22 1Q23 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M22 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) (Jan-Dec) (Jan
Slide 23: 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 23 23
Infrastrutture Wireless Italiane S.p.A. (INWIT) — Q1 2023 Earnings Presentation on 6ix