Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — Debt Investor Presentation (June 2020)
21 slides from Infrastrutture Wireless Italiane's debt investor presentation, June 2020
Slide 1: Investor Presentation
June 2020 Investor Presentation
Slide 2: Disclaimer
DISCLAIMER ▪ The information provided in this presentation is being furnished to you solely for your information on a confidential basis. Neither this document nor any copy thereof may be retained by you or reproduced, redistributed or passed on, in whole or in part, to any other person. ▪ This docu
Slide 3: Today speakers
Today speakers Diego Galli INWIT CFO Emanuela Martinelli INWIT Head of Finance & IR 3
Slide 4: Agenda
Agenda 1. Company overview and key credit highlights 2. Capital structure and envisaged transaction 3. Closing remarks Appendix 4
Slide 5: Company overview and key credit highlights
Company overview and key credit highlights Section 1
Slide 6: Inwit is the leading TowerCo in Italy with best asset quality
Inwit is the leading TowerCo in Italy with best asset quality 2019 PRO FORMA 2 ANCHOR TENANTS €745M REVENUE #1 Best two players for quality €682M EBITDA #2 network experience in Italy according to Opensignal1 C. 90% OF REVENUE 2019 PRO FORMA 22.1K SITES2 200 New #1 EMPLOYEES Leading TowerCo in Italy
Slide 7: Strong heritage to further develop a future-proof telecom infrastructure
Strong heritage to further develop a future-proof telecom infrastructure The merger is a completion of a sharing project started over 10yrs ago by TIM and Vodafone, which are natural partners: Vodafone Italia Towers and Inwit are twin companies both leaders in Italy and obsessed by service quality Q
Slide 8: Inwit is backed by solid and committed shareholding structure
Inwit is backed by solid and committed shareholding structure • June 2015: Inwit listed (TIM retained a 60% stake) • March 2020: completion of merger with Vodafone Towers (37.5% stake for each of Vodafone and TIM) • April 2020: Vodafone and TIM placed a 9% stake via Accelerated Bookbuilding • June 2
Slide 9: Key credit highlights
Key credit highlights 1 Leading Italian TowerCo with 22k+ towers and second largest listed independent TowerCo in Europe 2 Resilient business profile based on revenues secured by long-dated MSAs 3 Visibility on future growth thanks to contractualized business with limited capex 4 Additional growth i
Slide 10: Leading Italian TowerCo with 22k+ towers and second largest listed independent TowerCo in Europe
1 Leading Italian TowerCo with 22k+ towers and second largest listed independent TowerCo in Europe #1 Inwit is the 2019 leading TowerCo in Italy with best asset quality (‘000 sites) Number of sites (‘000) 22 10 8 1 Inwit Cellnex Wind Tre TowerTel Tenancy 1.8x 1.4x 1.2x n.a. ratio (x) Note: Data at D
Slide 11: Resilient business profile based on revenue secured by long-dated MSAs
2 Resilient business profile based on revenue secured by long-dated MSAs Master Service Agreements Revenue progression with strong conversion into EBITDA • 8 years terms, renewable for further periods of 8 years with Other an «all or nothing» mechanism Common Grid • In case of “change of control”, e
Slide 12: Visibility on future growth thanks to contractualized business with limited capex
3 Visibility on future growth thanks to contractualized business with limited capex Inwit is the infra partner for 5G development of the leading Italian telecom players Common Grid • Passive infrastructure sharing for TIM & VOD After Before (in RAN sharing) Revenue progression with strong conversion
Slide 13: Additional growth in the long run thanks to preferred supplier to TIM and VOD
4 Additional growth in the long run thanks to preferred supplier to TIM and VOD and other players Preferred supplier to TIM & VOD • For 8 years and, afterwards, until TIM and VOD retain at least 25% • “First offer & last call” for both TIM e VOD: Revenue progression with strong conversion into EBITD
Slide 14: Strong de-leverage capabilities thanks to high cash conversion and EBITDA growth
5 Strong de-leverage capabilities thanks to high cash conversion and EBITDA growth 2019 pro forma figures (Inwit and VOD Towers)1; € m Shareholders agreement aims at a pay-out ratio of at least 80% 92% 58% of revenue 29% (62,1) 63% of EBITDA 32% c. 25% 744,6 (251,4) 682,5 (89,2) 431,1 342,0 (126,8)
Slide 15: Capital structure and envisaged transaction
Capital structure and envisaged transaction Section 2 15
Slide 16: Leverage in line with industry benchmarks and strong liquidity position
Leverage in line with industry benchmarks and strong liquidity position 1Q2020 net debt plus extraordinary INWIT debt maturity schedule dividend (€ 570m paid in April 2020) €m € m; excluding capitalized leases (IFRS 16) 280 Undrawn RCF 1.082 Capitalized leases (IFRS 16) 220 RCF drawn (exp. March 202
Slide 17: Key considerations
Credit rating in the Investment Grade area Rating & outlook BB+ BBB- Stable outlook Stable outlook • The industry's low risk profile reflects the sector's low volatility • Cash-generative business with low maintenance capex and and cyclicality, and the high predictability of cash flows demand-driven
Slide 18: Indicative terms of the debut offering
Indicative terms of the debut offering Indicative Term Sheet Issuer INWIT S.p.A. • S&P: BB+ / Stable Issuer Rating • Fitch: BBB- / Stable • S&P: BB+ Issue Expected Rating • Fitch: BBB- Amount Benchmark Expected Tenor 6-7 years Currency Euro • Clean up call Optional redemption • 3 months par call • M
Slide 19: Closing remarks
Closing remarks Section 3 19
Slide 20: New Inwit is up and running
New Inwit is up and running • Inwit activities − Inwit in the official list of essential services No significant − 100% Agile working impact from − Suppliers operating with mandatory safety precautions COVID • Telecom sector was among the most resilient ones during the pandemic: it was recorded an i
Slide 21: Closing remarks
Closing remarks Credit supportive industry with high entry barriers Leading positioning in Italy with best asset quality Tier 1 anchor clients New Resilient business with strong visibility on revenue Robust growth potential with limited recurring capex and growth capex only upon contract Unparallele
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