Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — Q2 2024 Earnings Presentation
28 slides from Infrastrutture Wireless Italiane's earnings presentation, Jul 31, 2024
Slide 1: Q2 2024 Financial Results
Q2 2024 Q2 2024 Financial Results July 31st,2024
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: Q2 2024 results key messages
Q2 2024 results key messages Solid industrial KPIs leading to asset base expansion: new sites, new PoPs and real estate transactions Resilient growth in financials: high 1-digit revenue growth and margin expansion in line with Business Plan targets Continued traction in Indoor Coverage: growing asse
Slide 4: Q2 2024: resilient performance in a transformative year for the Italian TLC industry
Q2 2024: resilient performance in a transformative year for the Italian TLC industry Steady Revenue Margin Growing cash flow Growth expansion generation +8% +11% €159m Organic Revenue Growth EBITDAaL Growth Recurring FCF CPI link, New sites, 72% margin 4.9x Net Debt / EBITDA New PoPs, New services (
Slide 5: New Sites: execution continues with high volume of new sites
New Sites: execution continues with high volume of new sites Total Macro Sites New Sites (k Sites) +4% (#Sites) YoY 24.5 +990 24.1 24.3 LTM 23.8 23.5 315 225 230 240 85 205 55 65 60 45 230 170 165 160 180 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Anchors MSA Other BTS programs High
Slide 6: Anchor PoPs: more than 1k New PoPs in H1, in line with FY guidance
Anchor PoPs: more than 1k New PoPs in H1, in line with FY guidance Anchors – Total PoPs Anchors - New PoPs (k PoPs) +6% (#PoPs) YoY +2.3k 41.4 41.8 LTM 40.2 40.8 39.6 650 620 640 610 400 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Anchor clients: Highlights ▪ Business model of shared
Slide 7: OLOs' PoPs: 13% YoY growth driven by a pick-up in IoT clients
OLOs’ PoPs: 13% YoY growth driven by a pick-up in IoT clients Other Clients – Total PoPs Other Clients - New PoPs MNOs, FWAs, Others +13% MNOs, FWAs, Others (k PoPs) YoY (#PoPs) +1.7k 14.4 LTM 13.9 13.5 13.1 12.7 520 410 400 400 350 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 MNOs –
Slide 8: New Services: +40% growth and emerging demand from Smart City projects
New Services: +40% growth and emerging demand from Smart City projects Growing asset base for indoor coverage New Services Revenues (Eur m) ~520 ~8.7k 1,000km DAS Highway and Projects/Locations Remote Units Roadway Tunnels +40% (DAS, Small Cells) YoY 15.8 16.1 14.3 New Commercial Wins in 1H 2024 11.
Slide 9: P&L Q2 2024: continued 2-digit margin expansion
P&L Q2 2024: continued 2-digit margin expansion (€m) Q2 2023 Q1 2024 Q2 2024 YoY Highlights Total Revenues 237.6 254.6 257.1 8.2% ▪ 8.2% revenue growth driven by: One-off Revenues 0.2 - - ▪ CPI link, based on 2023 avg FOI index (Anchors: no cap) Recurring Revenues 237.5 254.6 257.1 8.3% ▪ MSA growth
Slide 10: Cash flow: leverage reduction despite investments and shareholder remuneration
Cash flow: leverage reduction despite investments and shareholder remuneration (Eur m) Q2 2024 cash flow build up Highlights ▪ €159m RFCF with 68% cash conversion ▪ +6% QoQ; -15% YoY given NWC phasing in Q2’23 ▪ Structurally low recurring capex ▪ Low taxes due to goodwill tax schemes (FY24E: ~€45m)
Slide 11: Italian digital infra market: ongoing TLC evolution and structural growth ahead
Italian digital infra market: ongoing TLC evolution and structural growth ahead ITALIAN TLC ▪ Despite the need for mobile infra investments, discretionary CapEx in Italy has been limited by financial constraints of MNOs MARKET ▪ Several transactions announced (consolidation and network sharing) pote
Slide 12: Annex
INWIF Annex
Slide 13: Sustainability Plan H1 2024 progress
Sustainability Plan H1 2024 progress: Supporting reduction of digital divide and environmental footprint TOWER AS A E S G SERVICE ▪ Carbon Neutrality ▪ To accelerate indoor and outdoor coverage ▪ Tenancy ratio improvement Main target ▪ 2,9+ MWp photovoltaic plants ▪ To increase hospitalities in whit
Slide 14: ESG: overview of Ratings and Index Memberships
ESG: overview of Ratings and Index Memberships ESG Index Membership 14
Slide 15: Business model ensures consistent delivery in an evolving scenario
Business model ensures consistent delivery in an evolving scenario Evolving External Scenario ▪ Continued mobile data growth ▪ Higher EMF limits, still below EU standards ▪ Structural need to improve 5G coverage and densification ▪ Italian TLC industry under pressure and evolving 1 2 Best Tower Asse
Slide 16: 2024-2026 Business Plan Guidance
2024-2026 Business Plan Guidance 2026E EUR m 2023A 2024E (prior guidance) 2026E Highlights • High 1-digit organic growth, among the best in industry Revenues 960.3 1,030 – 1,060 >1,200 1,160 – 1,240 • +3% Sites CAGR, +6% PoPs CAGR, >30% New Services CAGR • Slight EBITDA margin expansion EBITDA margi
Slide 17: Strong protection in inflationary environment
Strong protection in inflationary environment FY 2023 Results Presentation Inflation impact on key variables % of 2023 Key Figures CPI link mechanics Revenues Inflation sensitivity: Revenues 100% +1% inflation equals >€5m EBITDAaL 100% linked to prior-year avg CPI Anchor MSA macro site 82% (0% floor
Slide 18: PoPs volumes assumption: >6% CAGR driven by +3% New Sites CAGR
PoPs volumes assumption: >6% CAGR driven by +3% New Sites CAGR FY 2023 Results Presentation New Macro Sites – MSA and other BTS programs >3% CAGR % ▪ Tenancy Ratio at 2.5x in 2026E vs 2.23x in 2023 >1.2k ~1.0k ▪ “MNO only” tenancy ratio at 1.9x in 2023E ▪ 3 BTS programs: MSA, Next Gen EU, Open Fiber
Slide 19: New Services: Material opportunity in DAS Indoor Coverage Solutions
New Services: Material opportunity in DAS Indoor Coverage Solutions FY 2023 Results Presentation - ▪ Critical need for seamless outdoor and indoor connectivity within enterprises, large venues, public spaces and transport infrastructure Updated ▪ DAS Technology (Distributed Antenna System): multiten
Slide 20: Cost efficiency across the board
Cost efficiency across the board FY 2023 Results Presentation - Updated % Land Owned EBITDAaL Margin % ▪ Continued work on lease cost, tracking ahead of cost reduction targets 2023A 2026E 2023A 2026E Ground Lease ▪ Strong track record in lease cost reduction despite inflation link cost kicking-in an
Slide 21: Asset and cost optimization continues with tangible results
Asset and cost optimization continues with tangible results Tenancy ratio1 Lease cost per site2 EBITDAaL per site3 (x) (€k) (€k) 28.5 30.3 30.4 8.3 8.1 8.1 2.20 2.26 2.28 Q2'23 Q1'24 Q2'24 Q2'23 Q1'24 Q2'24 Q2'23 Q1'24 Q1'24 EBITDAaL 71% 72% 72% margin Best in class tenancy ratio Strong track record
Slide 22: CapEx plan with 2-digit IRR, peak in 2024 due to New Sites
CapEx plan with 2-digit IRR, peak in 2024 due to New Sites FY 2023 Results Presentation Capex Plan supporting material EBITDAaL growth ’24-’26 Capex Breakdown CapEx EBITDAaL Growth1 (Eur m) (Eur m) Maintenance ~800 ~1,450 Other New Sites and upgrade ~30% >430 EBITDAaL €~800m Growth / Capex CapEx SC/
Slide 23: 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 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-Mar) (J
Slide 24: 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 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) (Jul-Sep) (Oct
Slide 25: 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 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-Mar) (J
Slide 26: 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 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-Mar) (Jan-J
Slide 27: 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 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 6M24 Figures in #k (Jan-Mar) (jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan
Slide 28: More questions? Ask Investor Relations
More questions? Ask Investor Relations Fabio Ruffini Head of Investor Relations & Corporate Development fabio.ruffini@inwit.it ir@inwit.it
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