Infrastrutture Wireless Italiane S.p.A. · MIL:INW

Infrastrutture Wireless Italiane — Q3 2018 Earnings Presentation

16 slides from Infrastrutture Wireless Italiane's earnings presentation, Nov 7, 2018

  1. Slide 1: 3Q'18 Financial Results

    November 7, 2018 3Q’18 Financial Results GIOVANNI FERIGO – ANDREA BALZARINI – MICHELE VITALE

  2. 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 mentioned repeatedly in this presentation and include statements regarding the intent, belief or current expectati

  3. Slide 3: Inwit keeps growing

    Inwit keeps growing TENANCY RATIO REV GROWTH 1.86x +7.9% 3Q’18 3Q’18 YoY 1.86x 95 1.8x 1.7x 88 1.6x 84 80 Tenant per tower €m 3Q‘15 3Q‘16 3Q‘17 3Q‘18 3Q‘15 3Q‘16 3Q‘17 3Q‘18 3Q’18 Financial Results 1 EBITDA GROWTH Recurring FCF +13.6% 28.1 3Q’18 YoY € mln 3Q’18 Rec. FCF normalized 2 41 54 for differ

  4. Slide 4: Industrial Results

    3Q’18 Financial Results Industrial Results 3Q’18 Financial Results INWIT 4

  5. Slide 5: Mid single digit revenue growth confirmed

    Mid single digit revenue growth confirmed 3Q’18 Revenues 5.0 95.0 24.8 65.2 Includes Portugal consultancy revenues Euro Mln 1 2 TIM OLO & Others New Sites and New Services 3 Total (MSA on existing sites) (OLO on existing sites) (Includes TIM & OLOs contributions) 95 +7.9% 65 Including 88 63 63 65 Po

  6. Slide 6: Lease cost reduction ongoing

    Lease cost reduction ongoing 3Q’18 Operating Expenses 2.1 40.2 5.8 32.3 Euro Mln Ground Lease Other Opex 1 Personnel 2 Total OPEX 44 38 42 40 40 35 33 32 +1% -3% Euro Mln 5 6 Despite additional 5 4 +32% >0.2k New Sites and >1.2k Small Cells 1 2 2 2 +5% 3Q'15 3Q'16 3Q'17 3Q'18 3Q'15 3Q'16 3Q'17 3Q'18

  7. Slide 7: New tenants and Lease reduction key drivers for growth

    New tenants and Lease reduction key drivers for growth 2 Avg Revenues per Site 3 Avg Lease Cost per Site k€ - annualized k€ - annualized 7% +23% 13.2 -5% 34.1 -12% 30.2 32.0 12.8 27.8 12.1 11.6 3Q'15 3Q'16 3Q'17 3Q'18 3Q'15 3Q'16 3Q'17 3Q'18 New Tenants Cost Saving Tenancy Ratio 1 Lease Reduction #

  8. Slide 8: Continue in building a 5G-proof infrastructure

    Continue in building a 5G-proof infrastructure New Sites 450 # Sites Built 230 100 +96% 30 ‘Between 2016 and 3Q'15 3Q'16 3Q'17 3Q'18 2022, European data traffic is expected to Small Cells & DAS increase by 8 times’ 1,900 # Remote Units1 Ericsson mobility report – 2Q 2018 680 >3x ‘5G’s capabilities r

  9. Slide 9: Final remarks

    Final remarks  Fourteenth Quarter in a row of relentless growth  Portugal: from statements to real money  Strong Financials (mid single digit on Revs and low teens on EBITDA growth on track)  On track to meet our guidance The (5)Gold rush had its grand start in Italy With frequencies in the bag,

  10. Slide 10: Financial Results

    3Q’18 Financial Results Financial Results 3Q’18 Financial Results INWIT 10

  11. Slide 11: Sound and positive economic trends in all metrics

    Sound and positive economic trends in all metrics 9M'17 9M'18 YoY % Revenues 261.8 283.9 +8.4% Main KPIs TIM (MSA) ¹ 193.5 195.7 +1.1% OLOs & others ² 65.3 74.7 +14.4% New Sites & Small Cells ³ 3.0 13.5 > 4x REVENUES OPEX (123.0) (121.6) (1.1%) +8.4% 9M’18 YoY Ground lease (101.2) (97.8) (3.4%) Othe

  12. Slide 12: Main Achievements

    Main Achievements EBITDA EBITDA Margin 17% 53.0% 57.1% 50% 162 48.8% 45.2% 139 1.86x 121 1.8x tenancy ratio 108 1.7x Euro Mln Euro Mln 1.6x 1 9M'15 9M'16 9M'17 9M'18 9M'15 1 9M'16 9M'17 9M'18 CAPEX Rec. FCF 130 Dev Capex 100% 8 86% 96% 91% 36 82 30 68 Euro Mln 60 Euro Mln 22 2 9M'15 9M'16 9M'17 9M'1

  13. Slide 13: Profit & Loss 9M'18

    Profit & Loss 9M’18 Euro Mln 283.9 121.6 162.3 11.2 151.1 3.0 42.4 105.7 Revenues OPEX EBITDA D&A & Write EBIT Interest Taxes NET INCOME Off 3Q'18 95.0 -40.2 54.8 -3.9 50.8 -0.9 -14.4 35.6 EBIT Margin Solid performance that confirms the growth trajectory Best in class EBIT Margin 53% 9M’18 3Q’18 Fin

  14. Slide 14: Cash Flow 9M'18

    Cash Flow 9M’18 162.3 36.2 26.1 4.1 94.6 1.3 Euro Mln EBITDA CAPEX Cash Taxes Δ Net Working Financial charges Cash Flow to 3 Capital & others Equity 3Q'18 54.8 10.1 25.2 4.3 0.4 14.7 Recurring FCF 1 129.5 mln € Positive Cash Flow-to-Equity, despite increasing investments +60% Growth YoY 2018 Dividen

  15. Slide 15: Balance Sheet at September 30, 2018

    Balance Sheet at September 30, 2018 1,412 16 98 25 1,579 65 720 1,514 Euro Mln 794 37 237 2 Tangible Other Fixed Goodwill NWC ARO Fund Other BS Total Net Net Debt Equity & Distributable Total Equity Assets Assets Items Assets Legal Reserves Reserves 1 Net Debt/EBITDA Intact financial flexibility 0.3

  16. Slide 16: More questions?

    More questions? Ask Investor Relations Michele Vitale Head of Investor Relations michele.vitale@inwit.it f: +39 06 44084 320 3Q’18 Financial Results INWIT 16

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