Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — FY 2024 Earnings Presentation
44 slides from Infrastrutture Wireless Italiane's earnings presentation, Mar 5, 2025
Slide 1: FY 2024 Results & 2025-2030 Business Plan Presentation
FY 2024 FY 2024 Results & 2025-2030 Business Plan Presentation March 5th, 2025
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 of today's presentation
Key messages of today’s presentation 1 FY 2024 results mark a further step forward, with expansion in all key industrial and financial metrics 2 Towers confirmed as a key node of the digital ecosystem, with opportunities to expand and diversify 3 Mobile data growth underpins need for digital infra i
Slide 4: Q4 & FY 2024 Financial Results
Q4 & FY 2024 Financial Results 4
Slide 5: Q4 and FY highlights: a further step forward
Q4 and FY highlights: a further step forward New Sites New PoPs Real Estate Revenues Margins Cash Flow +270 +915 +410 +6.8% +6.7% +14.4% New sites in Q4’24 New PoPs in Q4’24 Real Estate Revenues Growth YoY EBITDAaL Growth YoY RFCF growth YoY Q4’24 Transactions in Q4’24 in Q4’24 in Q4’24 In Q4’24 Hig
Slide 6: New Towers: reaching 25k after >900 New Sites in 2024
New Towers: reaching 25k after >900 New Sites in 2024 Total Towers (k Sites) New Towers (# Sites) Tenancy 2.23x 2.26x 2.28x 2.30x 2.32x Ratio +4% YoY > 900 25.0 in 2024 24.5 24.7 24.1 24.3 315 270 85 240 205 200 60 60 45 80 230 210 160 180 120 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q1'24 Q2'24 Q3'24 Q4
Slide 7: New PoPs: +7% growth in FY24 with new tenants from all client categories
New PoPs: +7% growth in FY24 with new tenants from all client categories Total PoPs (Anchors, MNOs, FWAs, Others) New PoPs (Anchors, MNOs, FWAs, Others) +7% (#PoPs) (k PoPs) YoY 58.0 +3.7k 54.3 55.3 56.2 57.1 LTM 1,040 960 920 910 915 40.8 41.4 41.8 42.3 42.8 Anchors Anchors 640 610 400 490 485 MNOs
Slide 8: Smart Infrastructure: Revenues >2x in 2 years, driven by DAS Indoor
Smart Infrastructure: Revenues >2x in 2 years, driven by DAS Indoor Smart Infrastructure1 assets ~10k ~610 1,000km DAS Highway and Remote Units Locations Roadway Tunnels (DAS, Small Cells) ▪ Revenue Growth driven by indoor coverage DAS technology (Distributed Antenna Systems) ▪ ~160 new locations in
Slide 9: P&L Q4 2024: +7% growth driven by Smart Infra
P&L Q4 2024: +7% growth driven by Smart Infra (Eur m) Q4 2023 Q3 2024 Q4 2024 YoY Highlights Total Revenues 247.1 260.3 263.9 6.8% ▪ 6.8% revenue growth driven by: One-off Revenues 0.2 0.0 0.0 ▪ CPI link, based on 2023 avg FOI index Recurring Revenues 246.9 260.3 263.9 6.9% ▪ MSA committed New PoPs
Slide 10: Cash flow: 65% cash conversion in FY24 and confirmed ability to de-lever
Cash flow: 65% cash conversion in FY24 and confirmed ability to de-lever FY 2024 cash flow build up (€m) Highlights ▪ €621m RFCF, in line with guidance 946.7 23.2 >65% cash -20.1 ▪ Structurally low recurring capex -48.8 conversion ▪ Low cash taxes, benefiting from tax schemes -199.8 621.0 -80.3 ▪ Op
Slide 11: 2020-2024 execution: strong asset expansion driving higher return on capital
2020-2024 execution: strong asset expansion driving higher return on capital Financial Figures +8% CAGR +38% CAGR +12% CAGR +18% CAGR +3p.p. +1.4x +3.6x +1.6x +2.0x +1.8x 1,036 750 751 621 7.9% 71 476 Margin % +9pp 317 4.5% 72% 20 63% 2020PF 2024 2020 2024 2020PF 2024 2020PF 2024 2020 2024 1 Revenue
Slide 12: 2020-2024 execution: a stronger company, well positioned to grow further
2020-2024 execution: a stronger company, well positioned to grow further From 2015-2020 To 2024 Independent Company Governance MNO Control / Co-Control with Neutral Host Model Technology & Few hundreds New Sites per year >900 New Sites per year Operations Infancy of DAS activity >500 New Indoor Cove
Slide 13: 2025-2030 Business Plan Context and Growth Drivers
2025-2030 Business Plan Context and Growth Drivers 13
Slide 14: Tech context | Towers are a digital node at the center of the technology ecosystem
Tech context | Towers are a digital node at the center of the technology ecosystem TOWERS Connected Equipped User-Proximate Sharable Technological ecosystem enables a series of applications Regional / Edge DC by Cla Smart City Smart Rural Smart Rail & Road Smart Rails & Road Transportation Active DA
Slide 15: Market Context | Mobile data growth underpins need for Digital Infrastructure
Market Context | Mobile data growth underpins need for Digital Infrastructure Double–digit mobile data growth… …Italian mobile network needs to catch-up ▪ Mobile data per user growing at 2-digit rates until 2030 ▪ Italian 5G mobile infrastructure and 5G speed ranking behind peers ▪ Traffic growth dr
Slide 16: Market Context | Towers well placed in an evolving TLC industry scenario
Market Context | Towers well placed in an evolving TLC industry scenario Strong INWIT positioning in any industry scenario Italian TLC industry re-shaping a #1 TowerCo in a consolidated market with low EMF limits TIM delayering ▪ >45% market share in a 2-Towerco and 4-MNO market ▪ First mover locati
Slide 17: INWIT assets | #1 TowerCo and leading digital infrastructure player in Italy
INWIT assets | #1 TowerCo and leading digital infrastructure player in Italy 25k Towers ~610 60% Raw Land 40% Rooftop 58k Tenants DAS Locations >45% Market Share1 2.32 Tenancy ratio Higher share in city centres2 1 site every 3km ~14% >10k sites close to railways Land ownership ~5k sites close to hig
Slide 18: Growth Pillars | Leadership in Towers, Expansion in Smart Infra, Push on Real Estate
Growth Pillars | Leadership in Towers, Expansion in Smart Infra, Push on Real Estate DIGITAL INFRASTRUCTURE GROWTH DRIVERS ASSETS INFRA Tower Infra Smart Infra Real Estate Infra DAS & Small Leadership in dedicated Efficient rollout Cells coverage indoor and outdoor New Towers Committed + Densificati
Slide 19: Tower infra market | Demand driven by coverage and densification needs
Tower infra market | Demand driven by coverage and densification needs 1 Traffic-driven densification 2 Coverage-driven densification 3 Rails & Road 5G coverage ▪ Structural need to increase coverage and ▪ Data traffic growth creating unmet traffic ▪ Upgrade to 5G from 4G requires additional sites c
Slide 20: Tower infra targets | >14k New PoPs by 2030 for a 4% CAGR
Tower infra targets | >14k New PoPs by 2030 for a 4% CAGR New Macro Sites Tenancy 2.3x 2.4x 2.6x Ratio New Towers Mix 2025-2026 ▪ Industrial site roll out plan with limited CapEx outlay +2% €m CAGR ▪ ~€100k CapEx per New Tower ~28.5k ▪ New Sites programs: Anchors MSA and Next Gen Eu +~800 p.a. ~26.5
Slide 21: Smart infra market | Indoor connectivity needs across verticals and large projects
Smart infra market | Indoor connectivity needs across verticals and large projects Technology trend Smart Infrastructure Market Potential DAS Indoor Locations ▪ Mobile data growth happens mostly indoor ▪ Enterprise need for indoor 5G (transactions, experiences) ~3K ~5K +2k ▪ Structural limits of 5G
Slide 22: Smart infra targets | 2-digit revenue growth affirming market leadership in DAS
Smart infra targets | 2-digit revenue growth affirming market leadership in DAS Smart Infrastructure Revenues (DAS, IoT, Small Cells) % on total 7% ~10% >12% revenues 2-digit >175 CAGR ’26-’30 ▪ MNOs focused on flagship projects €m ~110 ▪ Solid demand from locations owners ~71 ▪ 700 new locations to
Slide 23: Real Estate infra | adding another layer of margin growth at accretive returns
Real Estate infra | adding another layer of margin growth at accretive returns Real Estate efficiency plan via land acquisitions / renegotiations NEW Energy Self Consumption project ▪ Efficiency push through a greater land acquisition program ▪ Extension of INWIT real estate model leveraging on avai
Slide 24: Capex Plan | Deployment of €1.5bn at accretive returns to extend infra perimeter
Capex Plan | Deployment of €1.5bn at accretive returns to extend infra perimeter 2025-2030 CapEx Plan 2025-2030 CapEx Split o/w ~€80m 316 Land buyout Maintenance 300 New Sites 270 ~€1.5bn <10% & upgrades ~240 Others CapEx in >10% 2025-2030 ~25% Launch of Solar Energy >5% €~1.5bn ~+€300m run rate EBI
Slide 25: Capital Allocation Framework | strong combination of growth and yield
Capital Allocation Framework | strong combination of growth and yield ▪ Target leverage (Net Debt/EBITDA): structural at 5x-6x in line with credit ratings; 5.0x-5.5x in the short-term given rates and industry scenario ▪ Capital allocation priority: CapEx (€1.5bn in 2025-2030) to support organic grow
Slide 26: 2025-2030 Business Plan Targets
2025-2030 Business Plan Targets 26
Slide 27: Financial Targets | +6% EBITDAaL CAGR, >5% dividend yield
Financial Targets | +6% EBITDAaL CAGR, >5% dividend yield 2024A 2025E 2026E 2030E CAGR 24-30 Revenues 1,036 1,070-1,090 1,135-1,165 1,325-1,375 +4.5% o/w CPI (prior year avg. FOI index)1 5.4% 0.8% 1.7% 2.0% EBITDA margin2 91.4% >91% >91% >91% +4.5% EBITDAaL margin3 72.4% >73% ~75% ~78% +6% Recurring
Slide 28: Shareholder Remuneration | structural and short-term tools for a best in class yield
Shareholder Remuneration | structural and short-term tools for a best in class yield Shareholder remuneration: track record and policy Special Dividend (€m, november 2025) 200 300 100 Share Buyback 163 (€m, indicative phasing) 137 583 612 643 675 480 517 555 452 Ordinary Dividends 288 310 333 (€m) 2
Slide 29: Delivering a compelling mix of growth and yield, with additional optionality
Delivering a compelling mix of growth and yield, with additional optionality Best Assets: #1 TowerCo and leading digital infrastructure player in Italy, with first-mover location advantage Strong Industrial expertise: efficient capital deployment in New Sites, Smart Infra and Real Estate Resilient b
Slide 30: Annex
INWIF Annex
Slide 31: P&L FY 2024: industry-leading EBITDAaL margin
P&L FY 2024: industry-leading EBITDAaL margin (Eur m) FY 2023 FY 2024 YoY Highlights Total Revenues 960.3 1,036.0 7.9% ▪ 7.9% Revenue growth driven by One-off Revenues 0.6 0.0 ▪ CPI link, based on 2023 avg FOI index Recurring Revenues 959.7 1,036.0 8.0% ▪ MSA committed New PoPs Towers – Anchors1 787
Slide 32: Sustainability Plan: Reduction of digital divide, climate commitment and inclusion
Sustainability Plan: Reduction of digital divide, climate commitment and inclusion DIGITAL INFRASTRUCTURE E S G COMPANY ▪ Carbon Neutrality ▪ Hospitalities in white/vulnerable areas ▪ Tenancy ratio improvement Main target ▪ 50+ MWp photovoltaic plants ▪ Women in managerial role ▪ ESG Rating and Inde
Slide 33: ESG: overview of Ratings and Index Memberships
ESG: overview of Ratings and Index Memberships 33
Slide 34: Overview of key lease cost, financial charges and tax assumptions
Overview of key lease cost, financial charges and tax assumptions % Land Owned EBITDAaL Margin % ▪ Continued work on lease cost, through renegotiations and acquisitions 2024A 2026E 2030E 2024A 2026E 2030E Ground Lease ▪ Strong track record in lease cost reduction despite inflation link cost kicking-
Slide 35: Asset and cost optimization trend
Asset and cost optimization trend Tenancy ratio1 Lease cost per site2 EBITDAaL per site3 (x) (€k) (€k) 29.7 30.7 30.5 7.9 7.7 8.0 2.23 2.30 2.32 Q4'23 Q3'24 Q4'24 Q4'23 Q3'24 Q4'24 Q4'23 Q3'24 Q4'24 EBITDAaL 72% 73% 72% margin Best in class tenancy ratio Strong track record Material and highly visib
Slide 36: Inflation link | CPI trending to 2% with positive impact on INWIT EBITDAaL
Inflation link | CPI trending to 2% with positive impact on INWIT EBITDAaL Inflation Business Plan assumptions Inflation impact on key variables Inflation assumptions – year average (applied to Y+1 P&L) 100% 9% Towers (OLOs Assumer in line Linked to 75% and others) of prior year with inflation 19% a
Slide 37: Tower assets and ownership model
Tower assets and ownership model TOWERS Connected Equipped User-Proximate Sharable IoT 1 Ground Equipment 8 sensors/gateways 11 2 MNO antennas 9 Edge data center 5G 3 FWA antennas 10 Solar Panels 2 MNO Spectrum 4 mMIMO antennas 11 frequencies 3 4 Power and Cooling 5 Fiber Backhaul 12 System 8 13 10
Slide 38: Summary Business Model Drivers
Summary Business Model Drivers A % of ▪ ~82% of revenues from Anchor tenants MSA FY24 - Key Financials1 €m Revenues o 100% linked to prior-year avg CPI (0% floor, no cap) o Committed growth until 2030 + “Preferred supplier” rights A o 8+8 year renewal cycles with “all or nothing” clause Revenues 1,0
Slide 39: Data book: Cumulated P&L
Data book: Cumulated P&L 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 6M24 9M24 FY24 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) (Jan-Jun) (Jan-Sep) (Jan-Dec) (J
Slide 40: 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 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 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) (Apr-Jun) (J
Slide 41: Data book: Balance Sheet
Data book: Balance Sheet 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 6M24 9M24 FY24 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) (Jan-Jun) (Jan-Sep) (Jan-Dec) (J
Slide 42: Data book: Cash Flow
Data book: Cash Flow 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 6M24 9M24 FY24 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) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-M
Slide 43: Data book: Operational KPIs
Data book: Operational KPIs 1 3 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 6M24 9M23 FY24 Figures in #k (Jan-Mar) (jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan
Slide 44: Any questions? Ask INWIT Investor Relations
Any questions? Ask INWIT Investor Relations ir@inwit.it 44
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