Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — Q1 2017 Earnings Presentation
25 slides from Infrastrutture Wireless Italiane's earnings presentation, Apr 28, 2017
Slide 1: 1Q'17 Financial Results
April 28th, 2017 1Q’17 Financial Results
Slide 2: Safe Harbor
Safe Harbor This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current e
Slide 3: Double-digit growth: we are fully on track
Double-digit growth: we are fully on track Continuing our path of growth Tenancy Ratio ► New Tenants drive up revenues: 1Q’17 revenue at +5.8% YoY ► Cost reduction continues: Lease reduction of -4.8% YoY: 1.75x 1Q’17 Investment Plan on track ► New sites: 67% projects in progress (BP target > 500 Sit
Slide 4: Business Plan Delivery
1Q’17 Financial Results Business Plan Delivery Oscar Cicchetti – CEO Rafael Perrino – CFO 1Q’17 Financial Results 4 Oscar Cicchetti, Rafael Perrino
Slide 5: Revenue growth delivered
Revenue growth delivered 1Q’17 Revenues 21.0 86.4 64.5 0.9 Euro Mln ~170 Sites built deriving from and up & running ~8.7k tenants 2 TIM 1 New Sites OLOs Total (MSA) (Includes TIM & OLOs contributions) 1Q’16 63.3 0.2 18.2 81.7 Growth +2.0% +350.0% +15.4% +5.8% 1Q’15 63.3 0 15.3 78.6 3 Pro-forma Growt
Slide 6: New tenants fuelling tenancy ratio increase
New tenants fuelling tenancy ratio increase Tenancy Ratio1 Sites “on air” +0.1x YoY 11.2 11.1 11.0 0.07 New Sites 0.08 0.02 “on air” # Sites (k) 11.5 11.2 11.1 BoP Sites Sites dismantled -0.1 -0.3 -0.2 or being dismantled 1Q’15 FY’15 1Q’16 FY’16 1Q’17 (2014 PF) FY'15 FY'16 1Q'17 Tenants other than T
Slide 7: Additional efficiency secured
Additional efficiency secured 1Q’17 Operating Expenses Impacted by: (-) Efficiency on Ground Lease (-) Discount on lease contract with TIM (+) Ground lease costs due to ~170 of new sites 2.0 42.1 6.2 33.9 Euro Mln Headcount 16 92 76 # People 1Q'16 YoY Increase 1Q'17 Ground Other Personnel Total OPEX
Slide 8: Lease costs reduction plan on track
Lease costs reduction plan on track Decommissioning ~0.4 7% ~ 0.1 43% # Sites (k) 29% ~0.2 ~0.1 ~0.1 Dismantling of sites where TIM FY’18 target ~ 1.4k ~0.1 decommissioned its antennas, erasing the reached FY’15-18 ~0.1 associated costs, without any impact on Target ~0.1 revenues due to the flat nat
Slide 9: Consistent and positive KPIs trajectory
Consistent and positive KPIs trajectory OLOs & New Sites Revenues Average Lease cost per site 1 Average Annual PF Lease Cost 14.5 30% 21.9 14.2 21.5 20.6 0.8 0.9 13.9 19.9 13.6 13.5 0.7 13.4 Euro mln Euro k 18.4 0.6 13.2 12.9 12.8 17.1 0.2 16.5 20.7 21.0 19.3 19.9 15.3 15.7 18.2 16.5 17.1 15.3 15.7
Slide 10: New Investments to generate additional EBITDA
New Investments to generate additional EBITDA New Sites Small Cells Backhauling Target > 500 > 4k > 1.0k New sites by 2018 Remote Units by 2018 Connections by 2018 % Sites % Remote Units % Backhauling connections Projects in progress 5% 4% 1% 17% 6% 67% 37% 11% 11% Requested projects projects projec
Slide 11: Small Cells taking off today…
Small Cells taking off today… Platforms Economics… so far 4G Small Cells DAS Tenancy Ratio on DAS > 2x REMOTE UNIT Antenna MNO REMOTE MNO 1 \ Revenues per remote unit 3k€ / 7k€ UNIT Antenna REMOTE CORE MNO 2 UNIT Antenna Network MNO 3 INWIT Fiber (full backhauling) MNO’s Fiber BTS Hotel INWIT Fiber
Slide 12: …and further Small Cells densification tomorrow
…and further Small Cells densification tomorrow Data Consumption … and New Frequencies IEEE Wireless Communications - Analysys Mason Italian Mobile Data Traffic Cell Radius vs Frequencies Freq max radius # Cells to cover Italy Cisco VNI – Ericsson Mobility Report Exabytes per Month 1 / 2 Ghz tens of
Slide 13: Financials
FY’16 Preliminary Financial Results Financials Oscar Cicchetti – CEO Rafael Perrino – CFO 1Q’17 Financial Results 13 Oscar Cicchetti, Rafael Perrino
Slide 14: Sound and positive economic trends in all metrics
Sound and positive economic trends in all metrics 1Q'16 1Q'17 YoY % YoY Abs Revenues 81.7 86.4 5.8% 4.7 Brief Financial Review on 1Q’17 results TIM - MSA 63.3 64.5 2.0% 1.2 Revenues 3rd-party rev 1 ► TIM-MSA: 2% escalator as per contract 18.2 21.0 15.4% 2.8 ► OLOs: Increasing and confirming 3rd- par
Slide 15: EBITDA growth drivers
EBITDA growth drivers Investments Expand portfolio to meet Mob Op needs (4G & 5G) investing with a strict double digit IRR policy ► New Macro Towers New Investments (to complete coverage) Efficiency on actual portfolio ► Fiber Backhauling (to speed up connections) Base (at March 2015) ► Small Cells
Slide 16: Building a growing EBITDA Margin
Building a growing EBITDA Margin 51.3% 49.1% 1.75x 1.72x 45.2% 42.9% 1.62x 1.55x FY'14 PF FY'15 PF FY'16 1Q'17 Base Ground Lease Cost Plan Tenancy increase Tenancy ratio Impact on EBITDA1 Margin Ground Lease Cost Plan ► Site portfolio optimization 1.4% 2.9% 3.3% ► Ground Lease Renegotiations Tenancy
Slide 17: Profit & Loss – First Quarter 2017
Profit & Loss – First Quarter 2017 Interests D&A & Write-off ► Cash Financial Charges: 0.6k € Taxes mainly interests on LTD at 1.33% ► D&A: Impact of asset standard all-in cost depreciation; past years write-off and ► Tax rate down 3pp - driven accelerated depreciation (due to ► Non-cash interest: 0
Slide 18: Cash Flow at March 31, 2017
Cash Flow at March 31, 2017 Delta Trade Receivable quarterly trend Investments 1Q 2Q 3Q 4Q FY Var. NWC & Others Expansion Capex - 6.8 mln € (Land acquisition, New Sites Mainly impacted by: 18 17 Small Cells & Others) 2 • Negative First Quarter on Receivable – Seasonal Swing (annually neutral) (-22 m
Slide 19: Balance Sheet at March 31, 2017
Balance Sheet at March 31, 2017 1,412 40 95 36 1,532 19 720 1,513 Euro Mln 764 195 15 Tangible Other Fixed Goodwill NWC ARO Fund Other BS Total Net NFP Equity & Distributable Total Equity Assets Assets Items Assets Legal Reserves Reserves Net Debt/EBITDA 1 Maintaining significant financial flexibili
Slide 20: Back Up: Databook
Back Up: Databook 1Q’17 Financial Results 20 Oscar Cicchetti, Rafael Perrino
Slide 21: Databook – Reported Profit and Loss
Databook – Reported Profit and Loss [Unaudited] [Unaudited] [Unaudited] [Audited] [Unaudited] [Unaudited] [Unaudited] [Unaudited] [Audited] [Unaudited] 3M15 6M15 9M15 FY15 3M16 6M16 9M16 FY16 3M17 FY14 Currency: €m (April-June) (April - (April-Dec.) Annualized (Jan- Mar) (Jan - June) (Jan-Sep) (Jan-
Slide 22: Databook – Profit and Loss – Quarterly view
Databook – Profit and Loss – Quarterly view Average 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Currency: €m Quarter (Jan-Mar) (April-June) (July -Sept.) (Oct.-Dec.) (Jan-Mar) (April-June) (Jul-Sep) (Oct-Dec) (Jan-Mar) Pro-forma 1 Revenues 78.6 79.0 79.8 80.4 81.7 83.2 83.9 84.7 86.4 TIM - MSA 63.3
Slide 23: Databook – Balance Sheet
Databook – Balance Sheet [Unaudited] [Unaudited] [Unaudited] [Unaudited] [Audited] [Unaudited] [Unaudited] [Unaudited] [Audited] [Unaudited] As of As of Dec. As of As of As of September As of April As of Mar. As of Mar. As of June 31 2016 - As of Mar. Currency: €m June 30th Sept. 30th Dec. 31st 30th
Slide 24: Databook – Cash Flow
Databook – Cash Flow [Unaudited] [Unaudited] [Unaudited] [Audited] [Unaudited] [Unaudited] [Unaudited] [Audited] [Unaudited] As of June As of Sept. As of Dec. As of March 30th 2015 30th 2015 31st 2015 As of March As of June As of Sep. As of Dec. As of March Currency: €m 31st 2015 (3-mth (6-mth (9-mt
Slide 25: Databook – Operational KPIs
Databook – Operational KPIs PF2014 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 As of As of As of As of Dec. As of June As of Sept. As of Dec. As of June As of Dec. Operational KPIs March 31 September March 31 31 2014 PF 30 2015 30 2015 31 2015 30 2016 31 2016 2016 30 2016 2017 Tenancy Ratio 1.55x 1.59x
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