Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — FY2021 Earnings Presentation
34 slides from Infrastrutture Wireless Italiane's earnings presentation, Feb 24, 2022
Slide 1: FY 2021 Results and Strategic Update
FY 2021 FY 2021 Results and Strategic Update February 24th 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 Strong set of results in Q4 2021 in line with guidance – acceleration in all indicators Solid entry point into 2022 - targets announced – high single digit revenue growth INWIT distinctive features and growth pillars confirmed – multiple sources of organic growth Business Plan 2023-2026
Slide 4: 2021 Results and 2022 Targets
2021 Results and 2022 Targets 4
Slide 5: Q4 2021 results: positive trends across the board
Q4 2021 results: positive trends across the board Step-up in New Sites Growth in New PoPs Relentless Efficiency +170 +1,150 +475 New Sites in Q4 New PoPs in Q4 Lease Renegotiations/Buyouts 380 in FY21 Tenancy ratio increase Lease costs -2% >5x vs FY20 to 2.01x despite new sites built Further Acceler
Slide 6: Anchor PoPs: +9% growth driven by passive sharing
Anchor PoPs: +9% growth driven by passive sharing Anchors – Total PoPs Anchors - New PoPs +9% (k PoPs) YoY (PoPs) +3.1k 35.8 in 2021 35.1 34.5 900 860 33.6 700 630 32.7 520 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Anchor clients: +380 New Sites in 2021 Committed PoP growth continu
Slide 7: OLOs' PoPs: strong quarter and +10% YoY growth
OLOs’ PoPs: strong quarter and +10% YoY growth Other Clients – Total PoPs Other Clients - New PoPs MNOs, FWAs, OTMOs +10% MNOs, FWAs, OTMOs (k PoPs) YoY (k PoPs) +1.4k in 2021 10.2 9.8 440 450 9.5 360 290 300 9.2 9.2 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Other key clients: Neut
Slide 8: P&L: multiple levers of growth kicked-in
P&L: multiple levers of growth kicked-in (€m) Q4 2020 Q3 2021 Q4 2021 YoY Organic Revenue growth trend (% YoY) Total Revenues 189.9 198.1 203.9 +7.4% ▪ FY21 +5.3% vs +1.6% in FY20 7.2% ▪ Growth in Anchor commitments One-off Revenues 1.4 0.9 1.7 6.0% 4.5% ▪ New sites ramp up Recurring Revenues 188.6
Slide 9: Cash flow: continued strong RFCF delivery
Cash flow: continued strong RFCF delivery Q4 2021 cash flow build up Q4 2021 cash flow highlights (€m) ▪ €85m RFCF despite cash taxes (payments in Q2 and Q4) 186.0 ▪ Continuous optimization of Net Working Capital ▪ Structurally low recurring capex -5.8 +22.7 ▪ Other capex include highway tunnel asse
Slide 10: 2022 Guidance: continued growth path
2022 Guidance: continued growth path Growth (€m) Highlights Margin1 (%) Guidance Actual Guidance 2022-2021 2021 2021 2022 [on mid-point] Revenue 785-795 785 850-860 +9% Committed growth: 2/3 of total growth Low range EBITDA 715-725 715 775-785 +9% Stable EBITDA margin in line with Business Plan Low
Slide 11: Strategic update
Strategic update 11
Slide 12: More visible growth path also supported by external scenario
More visible growth path also supported by external scenario ▪ Best in class assets - macro grid and micro grid ecosystem Best Tower ▪ Capex plan - expanding infrastructure at attractive returns assets ▪ Focus on shorter E2E roll-out process of new sites/new PoPs ▪ Two Tier-1 Anchors - partner 5G ev
Slide 13: Macro and micro grid evolving into digital infrastructure
Macro and micro grid evolving into digital infrastructure Best Tower assets Towers are a key node of modern digital infrastructure INWIT macro grid and micro grid ecosystem Connectivity Secure space, Distributed antennas and power and across 22.8k+ fiber cooling urban and >45% share 46k tenants; Con
Slide 14: Macro grid Anchors: source of committed growth
Macro grid Anchors: source of committed growth Highly visible growth Key features of MSA structure ▪ Designed to partner with Anchors in 5G transition ▪ 8 + 8 years renewal cycles with “all or nothing” mechanism, change of control, protection/upgrade features ▪ Full CPI link: 100% of revenues linked
Slide 15: Macro grid OLOs: positive demand outlook
Macro grid OLOs: positive demand outlook Highly visible growth Key features of contract structure ▪ Neutral host role – INWIT assets available to all market players ▪ 6+6 or 9+9-year renewal cycles ▪ INWIT competitive advantage: grid quality and best locations ▪ CPI link: 100% of revenues link to ~7
Slide 16: Micro grid for dedicated coverage
Micro grid for dedicated coverage Highly visible growth DAS, Road/Rail, Small Cells: key drivers of “New Services” Revenues ▪ Micro grid Indoor (DAS + repeaters) and outdoor (Small Cells) needed for denser coverage on high-footfalls, massive network capacity and ultra low latency ▪ INWIT competitive
Slide 17: Next Gen EU: visibility on incremental opportunities
Supportive Next Gen EU: visibility on incremental opportunities external scenario Italy Next Generation EU Missions and Projects: >€230bn1 Process and expected returns Digital Inclusion Mobility Education Green Health Call for tenders Participate to public call for tenders and apply to receive funds
Slide 18: 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 ▪ Capex plan with double-digit unlevered returns 70
Slide 19: 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 20: 2023-2026 Targets and DPS policy confirmed
2023-2026 Targets and DPS policy confirmed (€m) Actual Guidance Guidance Margin1 (%) 2021 2023 2026 2023-2026 Guidance confirmed: Revenue 785 920-960 1,100+ • Benefits from inflation outlook • More cautious mix assumption on OLOs (lower remedies) EBITDA 715 840-880 1,000+ 91% 91% 2026 additional rev
Slide 21: ESG: commitment to carbon neutrality expedited to 2024
ESG: commitment to carbon neutrality expedited to 2024 GOVERNANCE PEOPLE ENVIRONMENT INNOVATION COMMUNITY Develop and maintain a Promote involvement, well- Reduce the environmental Act in support of operators Promote lower digital divide Sustainability governance framework being, safety and footprin
Slide 22: Key messages
Key messages Strong set of results in Q4 2021 in line with guidance – acceleration in all indicators Solid entry point into 2022 - targets announced – high single digit revenue growth INWIT distinctive features and growth pillars confirmed – multiple sources of organic growth Business Plan 2023-2026
Slide 23: Annex
Annex 23
Slide 24: Massive demand for connectivity served by 5G ecosystem
Nov. 2020 Massive demand for connectivity served by 5G ecosystem Business Plan Presentation 5G Mobile macro-sites densification Low Earth Orbit satellite ultra-broadband Optic fiber solution via satellites Widespread deployment High-density venues Private networks Transport Tailored infrastructures
Slide 25: Towers evolving from passive to digital infrastructure
Nov. 2020 Towers evolving from passive to digital infrastructure Business Plan Presentation Towers key distinctive features Towers host Towers guarantee Towers are well- connectivity secure space, with distributed antennas as presence of power across urban Connected well as fiber Equipped and coolin
Slide 26: INWIT benefiting from tech and investment momentum
Nov. 2020 INWIT benefiting from tech and investment momentum Business Plan Presentation Market growth drivers ▪ Infrastructure investments to speed up digitalization in Italy ▪ 5G ultrabroadband networks roll-out acceleration ▪ Small cells complementing 5G (massive capacity and ultra-low latency), w
Slide 27: Strong and sustainable growth driven by pillars
Nov. 2020 Strong and sustainable growth driven by 4 pillars Business Plan Presentation Business Plan 21-23 growth framework and ambitions to 2026 GROWTH PILLARS 1 2 3 4 PARTNER SERVE SCALE PILOT ANCHORS 5G OTHER PARTIES SMALL CELLS INNOVATIVE EVOLUTION DEMAND & DAS SERVICES 5 SUSTAINABLE BUSINESS EN
Slide 28: Asset and cost optimization continues with tangible results
Asset and cost optimization continues with tangible results Tenancy ratio Lease cost per site1 EBITDAaL per site1 (€k) (€k) 21.8 23.4 24.0 8.9 8.6 8.5 1.88 1.98 2.01 Q4'20 Q3'21 Q4'21 Q4'20 Q3'21 Q4'21 Q4'20 Q3'21 Q4'21 EBITDAaL margin 64% 67% 67% Best in class tenancy ratio Strong track record Mate
Slide 29: 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 Currency: €m (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) Revenues 103.0 184.4 186.1 189.9 190.2 192.9 198.1 203.9 1 TIM - MSA macro sites 66.3 80.4 81.7 81.7 82.1 83.6 84.4 83.6 1 VOD - MSA m
Slide 30: Data book: Cumulated P&L
Data book: Cumulated P&L 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) Revenues 103.0 287.4 473.5 663.4 190.2 383.1 581.2 785.1 TIM - MSA macro sites1 66.3 146.7 228.4 310.0 82.1 165.7 250.1 333.7 1 VOD - MSA macr
Slide 31: Data book: Balance Sheet
Data book: Balance Sheet 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) Goodwill 6,712 6,113 6,113 6,113 6,113 6,113 6,113 6,147 Tangible assets 783 778 798 812 802 815 821 876 Other intangible fixed assets 13 810
Slide 32: Data book: Cash Flow
Data book: Cash Flow 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) EBITDA Recurring 86.3 259.5 432.4 602.4 172.4 348.2 528.1 714.1 Recurring CAPEX (3.2) (3.8) (16.8) (1.8) (8.0) (11.6) (17.4) EBITDA - Recurring CA
Slide 33: Data book: Operational KPIs
Data book: Operational KPIs 1 3 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 3M20 6M20 9M20 FY20 3M21 6M20 9M21 FY20 Figures in #k (Jan-Mar) (jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) Tenancy Ratio 1.96x 1.81x 1.84x 1.88x 1.91x 1.95x 1.98x 2.01x Number of Tenants 21.9 40.5 41.0
Slide 34: More questions? Ask Investor Relations
More questions? Ask Investor Relations Fabio Ruffini Head of Investor Relations fabio.ruffini@inwit.it ir@inwit.it 34
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