Rai Way Spa · MIL:RWAY
Rai Way Spa — FY2021 Earnings Presentation
25 slides from Rai Way Spa's earnings presentation, Mar 17, 2022
Slide 1: 2021FY Results Presentation
2021FY Results Presentation 17 March 2022
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements regarding future events and the future results of Rai Way that are based on current expectations, estimates, forecasts, and projections about the industries in which Rai Way operates, as well as the beliefs a
Slide 3: Rai Way participants
Rai Way participants ● Aldo Mancino, Chief Executive Officer ● Adalberto Pellegrino, Chief Financial Officer ● Giancarlo Benucci, Chief Corporate Development Officer 2021FY Results Presentation 3
Slide 4: Delivering steady organic growth
Delivering steady organic growth Mln Eur; % Adj. EBITDA (pre and after leases1) Adj. EBITDA margin (pre and after leases1) Pre leases Pre leases 142,9 After leases After leases 136,1 +710bps 131,2 62,2% 60,6% 59,3% 118,3 115,5 109,3 111,3 132,8 53,4% 105,1 50,7% 51,5% 51,7% 57,8% 121,8 126,2 56,2% 5
Slide 5: Key messages on 2021
Key messages on 2021 ● Effects of development activities becoming visible: FINANCIAL RESULTS o Excluding non-core items, top-line growth of ca. +3% o Adjusted EBITDA up +5% (+160 bps margin) despite lower temporary savings from pandemic safety measures o Development capex exceeding €70m, mainly driv
Slide 6: Resilience of TV broadcasting
Resilience of TV broadcasting ● Excluding the 2020 spike driven by pandemic, DTT audience stable at ca. 10 mln per avg day since 2016 despite the growth in OTT usage ● Polarization type of contents - fruition mode confirmed: non-deferrable live contents directed to a wide audience (such as news, spo
Slide 7: Update on refarming for RAI
Update on refarming for RAI Description Progress as of 2021 A Extension from ca. 400 to ca. 1.000 ✓ National sites, DVB-T2 ready ● Base case scenario with management MUXes of 3 MUXes confirmed, resulting in coverage • Active equipment to be partially Completed € 15,8m step-up in Fixed Consideration
Slide 8: Update on regional refarming
Update on regional refarming Areas awarded to Rai Way ● 7 areas awarded to Rai Way, with 100% success rate where the company competed ● Network roll-out completed in the regions of Northern Italy while progressing in line with roadmap in other areas - Strong rationalization of networks (from several
Slide 9: Progress on new infra & services
Progress on new infra & services 100% >>> 0% Activity progress: Procedure to select Selection & tech partner Network architecture prioritization of Roll-out design edge locations to Agreement to access Edge host cache TLC Access Network CDN • First CDN release with major injection points available i
Slide 10: Update on ESG
Update on ESG ENVIRONMENT SOCIAL GOVERNANCE INNOVATION ✓●● 100% green electricity ● 35%3 women in mgnt ✓● 99% waste recovery 1 roles ● 80% of registered ● About € 200m Sustainability Plan 2023 ✓ €more 100+ m investments in efficient equipment ✓ ● agile working scheme up to 45% of employees suppliers
Slide 11: 2021FY Financial highlights
2021FY Financial highlights Mln Eur; % % YoY growth Core Revenues Adjusted EBITDA Net Income Adjusted EBITDA margin +2,4% +5,1% +2,1% 224,5 229,9 136,1 142,9 64,0 65,4 60,6% 62,2% 59,4% 2020FY 2021FY 2020FY 2021FY 2020FY 2021FY Capex Net debt (Net Cash) Cash conversion(2) Net Debt / Adjusted EBITDA
Slide 12: Core Revenues
Core Revenues Mln Eur; % % YoY growth ● Refarming-related step-up in revenues from RAI Excluding non-core items, (€ 15,8m + € 0,6m from reclassified new services on an annual basis) 2021 top-line growth at ca. 3% Restatement of Revenues from RAI from 1st July 2021 +2,4% 229,9 19,4 19,4 224,5 New Ser
Slide 13: Opex (excluding non-recurring)
Opex (excluding non-recurring) Mln Eur; % % YoY growth -1,5% 88,9 87,6 Personnel ● Excluding capitalizations, non-core items and lower temporary covid- 45,3 45,0 costs -0,6% related savings (on variable components), relatively stable underlying personnel cost ● Underlying Other Opex down by approx.
Slide 14: P&L
P&L Eur Mln, % 4Q 2020 4Q 2021 % YoY 2020FY 2021FY % YoY Core Revenues 56,4 58,2 3,1% 224,5 229,9 2,4% Other Revenues & income 0,5 0,0 0,5 0,6 ● 2021FY Net Income up by 2,1% at € 65,4m Adj. EBITDA 31,5 33,0 4,5% 136,1 142,9 5,1% as a result of: % margin 55,9% 56,6% 60,6% 62,2% Non recurring costs 0,
Slide 15: Net Debt bridge
Net Debt bridge Mln Eur Net Debt/ 1y rolling Adj. EBITDA 87,9 0,61x 46,1 64,0 0,34x 10,8 (0,5) IFRS-16 Debt 36,5m 0,6 69,2m 24,5 Gross Debt Cash&Eq(5) -17,8m (142,6) 85,0 Including € 70,7 m of development capex and small M&A Net Debt 2020YE EBITDA Capex(1) Taxes(2) Financial Δ NWC Funds & Dividend N
Slide 16: 2021 Recurring cash generation and dividend proposal
2021 Recurring cash generation and dividend proposal Mln Eur Dividend proposal ● Dividend proposal of 24,36 €cent/share (pay-out ratio of 100% of Net Income), with a dividend yield(3) of 4,5% 65 133 ● Including the proposed dividend for 2021, approx. € 422m -1 distributed to Shareholders since listi
Slide 17: Guidance 2022
Guidance 2022 REVENUES ● Mid-single-digit revenue growth driven by CPI, refarming for RAI and refarming for third parties ADJUSTED EBITDA ● Growth of Adjusted EBITDA, assuming a progressive normalization of electricity prices ❖ In the event of sustained high level of prices: - CPI-link on revenues p
Slide 18: Commitment to growth
Commitment to growth 2020-2023 Mainly from 2024 Industrial Plan period Beyond Industrial Plan period CPI Edge CDN Refarming RAI Edge Data Centers Organic Refarming for third parties growth Hyperscale Data Center Digital transformation ● New sites PNRR opportunities ● Backhauling ● FWA (indirect) 5G&
Slide 19: Q&A session
Q&A session 2021FY Results Presentation 19
Slide 20: Contacts
Contacts - Investor Relations +39 06 331 73973 +39 06 331 74815 investor.relations@raiway.it 2021FY Results Presentation 20
Slide 21: Appendix
Appendix 2021FY Results Presentation 21
Slide 22: Balance sheet
Balance sheet Mln Eur Including rights of use for leasing under IFRS-16 (€ 31,5 m) (14,4) (26,5) 253,8 87,9 294,6 165,9 Net Fixed Assets(1) Net Net Funds(2) Net Invested Net Debt Equity Book Value Working Capital Capital 1) Including long-term financial items and the rights of use for leasing introd
Slide 23: Detailed summary of Income Statement
Detailed summary of Income Statement (€m; %) 4Q20 4Q21 FY20 FY21 Core revenues 56,4 58,2 224,5 229,9 Other rev enues and income 0,5 0,0 0,5 0,6 Purchase of consumables (0,4) (0,5) (0,9) (1,5) 1) 1) Cost of serv ices (11,3) (10,6) (39,8) (38,2) 1) 1) Personnel costs (12,7) (13,7) (46,3) (45,4) Other
Slide 24: Summary of Balance Sheet
Summary of Balance Sheet (€m) 2020FY 2021FY (€m) 2020FY 2021FY Shareholders' Equity Non current assets Share capital 70,2 70,2 Tangible assets 200,9 244,5 Legal reserv es 14,0 14,0 Rights of use for leasing 32,5 31,5 Other reserv es 37,1 37,3 I ntangible assets 15,9 17,2 Retained earnings 63,5 64,4
Slide 25: Summary of Cash Flow Statement
Summary of Cash Flow Statement (€m) 4Q2020 4Q2021 FY2020 FY2021 Profit before income taxes 18,3 17,7 88,3 89,9 Depreciation, amortization and w rite-dow ns 12,6 13,8 45,4 50,5 Prov isions and (releases of) personnel and other funds 2,0 4,3 5,1 5,2 Net financial (income)/expenses 0,4 0,0 0,9 1,0 Othe