Infrastrutture Wireless Italiane S.p.A. · MIL:INW
Infrastrutture Wireless Italiane — Q1 2016 Earnings Presentation
21 slides from Infrastrutture Wireless Italiane's earnings presentation, May 3, 2016
Slide 1: 1Q16 Financial Results: Delivering on our promise
May 3, 2016 1Q16 Financial Results Delivering on our promise
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: 1Q16 Financial Results
1Q16 Financial Results Oscar Cicchetti – CEO Rafael Perrino – CFO 1Q16 Financial Results Oscar Cicchetti, Rafael Perrino 3
Slide 4: Revenues growth delivered
Revenues growth delivered January – March 2016 18.2 81.7 0.2 63.3 Euro Mln 1 TI - MSA New Sites 1Q16 OLOs Revenues 1Q16 Total Revenues 2015 Avg Quarter 2 63.3 0 16.4 79.7 Growth - - +10.8% +2.4% 2014 PF Avg 63.3 0 15.3 78.6 Quarter 3 Growth - - +19.2% +4.0% The information reported above refers to t
Slide 5: New tenants fueling tenancy ratio increase
New tenants fueling tenancy ratio increase New Tenants other than TI New Sites # Tenants (k) 0.3 7.4 0.8 7.1 # Sites 6.3 75 69 66 44 Telecom Italia orders 22 FY14 EoY FY15 Increase FY15 EoY 1Q16 Inc. 1Q16 EoP FY14 FY15 FY16 M&A # Sites ► Contractualized tenancy front-loaded during 76 54 Tenancy rati
Slide 6: Additional efficiency secured
Additional efficiency secured January – March 2016 1.7 42.8 5.5 35.6 Euro Mln Driven mainly by the scheduled Increase mainly impacted by one- personnel increase offs due to TI sales process Ground Lease 1Q16 Other Operating Expenses Personnel Total OPEX 2015 Avg 37.7 4.7 1.3 43.7 Quarter 1 Growth -5
Slide 7: Multiple levers for lease cost reduction
Multiple levers for lease cost reduction Decommissioning TI Equipment Removal INWIT Sites Dismantling 0.6 k Sites already in the dismantling process 1.4 # Sites (k) # Sites (k) ► 0.2 k dismantled (65 in FY15 and 150 in 1Q16) in 2015 0.6 ► 0.3 k to be dismantled in 2016 0.2 0.1 0.4 0.3 ► 0.1 k market
Slide 8: Building the future: Small Cell plan being deployed
Building the future: Small Cell plan being deployed Italian market evolution # Small cells tenants in Italy 1 # INWIT tenants >500k Small-Cells projects already launched (number of locations) >200k >90 >40k Focus on airports, hospitals, railway stations, universities, 2016E 2018E 2020E 2025E 5G full
Slide 9: Consistent KPIs positive trajectory
Consistent KPIs positive trajectory OLOs Revenues Average Lease cost Annualized Lease cost (k €) 18.2 14.5 17.1 14.2 30% 16.5 13.9 Euro mln Euro k 15.7 15.3 13.6 13.5 Avg Quarter Pro- 2Q15 3Q15 4Q15 1Q16 Avg Quarter Pro- 2Q15 3Q15 4Q15 1Q16 Forma 2014 forma 2014 New tenants being hosted beyond New l
Slide 10: 1Q16 Financial Results Presentation
1Q16 Financial Results Presentation Oscar Cicchetti – CEO Rafael Perrino – CFO 1Q16 Financial Results Oscar Cicchetti, Rafael Perrino 10
Slide 11: Solid and positive economic trend on all metrics
Solid and positive economic trend on all metrics 2 Average Single Delta vs 2Q15 (April- 3Q15 4Q15 Consolidated Delta vs Brief Financial Review Currency: €m Quarter Pro- Quarter Pro- 1 June) (July -Sept.) (Oct.-Dec.) 1Q16 AvgFY15 Revenues forma 2014 Avg FY15 forma TI. Increase due to new sites OL
Slide 12: Small M&A transactions completed
Small M&A transactions completed Locations are Deal Description concentrated in Northern Italy BRESCIA ► 3 companies have been acquired in January 2016 ► Merger approved by the AGM on April 19, 2016 with retroactive effect as of January 1, 2016 ► Acquisition of only passive and active contracts, exc
Slide 13: Profit & Loss – First Quarter 2016
Profit & Loss – First Quarter 2016 Revenues D&A Net Income Solid Revenues Growth: Sound Net Income Growth: 2.4% YoY 1 without benefiting Accelerated depreciation of +0.3 mln € in 1Q16 +12% YoY from CPI increase from 2017 for sites being dismantled – equivalent full onwards impact >1 mln € in FY2016
Slide 14: Cash Flow – First Quarter 2016
Cash Flow – First Quarter 2016 Investments Capex Var. NWC Acquisition of Ordinary Capex and Trade Receivables - 19 mln € About 14 mln € deferred receivable Brescia Companies investment plan cashed in early April Trade Payables + 7 mln € Other Receivables - 5 mln € Mainly due to cash advance 38.9 Oth
Slide 15: Balance Sheet at March 31, 2016
Balance Sheet at March 31, 2016 Distributable Reserves Goodwill Reserves +660 mln € 1 7.8 mln € increase due to Brescia acquisition Net Income FY15 +63 mln € Net Income 1Q16 +23.5 mln € 1,412 1 101 4 1,500 33 720 1,467 Euro Mln 747 187 5 Tangible Other Fixed Goodwill NWC ARO Fund Other BS Total Net
Slide 16: Inwit cost of capital
Inwit cost of capital Cost of financing Risk profile ► 120 mln € 5Y amortizing Term Loan with 1.33% all-inclusive ► Long-term contractualized revenues providing high result fixed costs with first instalment starting November 2017 visibility + inflation/deflation hedging ► 40 mln € revolving facility
Slide 17: Wrap up
Wrap up 1Q16 Financial Results Oscar Cicchetti, Rafael Perrino 17
Slide 18: A clear step taken on a solid growth path
A clear step taken on a solid growth path EBITDA 1Q16: 1Q16: > 1 mln € Additional Value 1Q16: ~ 2.4 mln € Creation Upside > 2.5 mln € M&A Opportunities Goodwill Enfranchisement EM law New Business / New sites Efficiency Bolt-on small M&A improvement New Sites Small Cells Tenancy Site Decommissioning
Slide 19: Guidance confirmed
Guidance confirmed 2Q15 3Q15 4Q15 1Q16 1,66x Tenancy Ratio Co-tenancy Increase in co-tenancy ratio from 1.6x to 1.9x 1,66x EBITDA (€Mln) EBITDA High single-digit growth New Site (#) Accretive Cumulative investment > 135 mln € +8 Small Cells initiatives1 +5 Small Cells Financial Net debt organically
Slide 20: Thank you
Thank you 1Q16 Financial Results Oscar Cicchetti, Rafael Perrino 20
Slide 21: Actual 3m2016 Consolidated P&L
Actual 3m2016 Consolidated P&L 3m2016 G.D.+G.I.+R.I Inwit Actual Intercompany Actual Currency: €m . 3m2016 3m2016 Elimination Consolidated Actual P&L Revenues 81.4 0.6 0.3 81.7 Telecom Italia 63.5 0.0 - 63.5 OLOs 17.9 0.5 0.3 18.2 Opex 42.7 0.4 0.3 (42.8) Lease Cost 35.6 0.3 0.3 (35.6) Maintenance 2
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