Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — Q2 2022 Earnings Presentation
26 slides from Infrastrutture Wireless Italiane's earnings presentation, Jul 28, 2022
Slide 1: Q2 2022 Financial Results
Q2 2022 Q2 2022 Financial Results July 28th 2022
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: Key messages
Key messages Solid set of financials in Q2/H1 – FY 2022 targets confirmed - cruising speed achieved Rebound in industrial KPIs – site build and new tenants at approx. 2x vs Q1 5G Next Gen EU tender and New Open Fiber Agreement further expanding our growth platform Business Plan 2023-2026 targets pos
Slide 4: Q2'22 results: rebound in KPIs, solid financials confirmed
Q2’22 results: rebound in KPIs, solid financials confirmed Step-up in New Sites Record-high OLOs PoPs Lease cost efficiency >100 >500 +650 New Sites New OLO PoPs Lease Renegoriations/Buyouts New industrial delivery +9% tot PoPs growth YoY Lease costs down despite process proving effective (+1,080 to
Slide 5: Anchor PoPs: higher new sites in Q2 to drive future PoP growth
Anchor PoPs: higher new sites in Q2 to drive future PoP growth Anchors – Total PoPs Anchors - New PoPs +7% (k PoPs) YoY (PoPs) +2.5k 36.9 LTM 36.4 35.8 900 35.1 630 700 620 34.5 540 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Anchor clients: New Sites +390 LTM Committed growth in Anc
Slide 6: OLOs' PoPs: material pick up in new tenants
OLOs’ PoPs: material pick up in new tenants Other Clients – Total PoPs Other Clients - New PoPs MNOs, FWAs, OTMOs MNOs, FWAs, OTMOs (k PoPs) +15% (k PoPs) +1.5k YoY LTM 10.9 10.4 540 10.2 450 9.8 9.5 290 300 230 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 MNOs – FWA OTMO Utilities Se
Slide 7: New Services: growth driven by dedicated coverage projects
New Services: growth driven by dedicated coverage projects New Services Revenues Dedicated Coverage Projects 2022 YTD (€m) (Split by vertical) >2x YoY 7.5 7.6 7.9 Industry Corporate 6.0 19% 30% 3.4 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 33% 11% INWIT micro grid expansion leveraging on multiple technologies 4
Slide 8: Expanding our growth platform for the long-term
Expanding our growth platform for the long-term Open Fiber FWA agreement Next Gen EU 5G for Italy tender ▪ FWA a structural feature of Italian TLC market ▪ INWIT acting as a digitalization enabler, supporting mobile operators in the reduction of digital divide ▪ 4 main players with ~9% share of broa
Slide 9: P&L: continued delivery in all metrics
P&L: continued delivery in all metrics (€m) Q2 2021 Q1 2022 Q2 2022 YoY Organic Revenue growth trend Total Revenues 192.9 207.0 210.7 +9.2% Cruising speed One-off Revenues 0.1 0.0 0.0 Recurring Revenues 192.7 207.0 210.7 +9.3% (% YoY) 9.3% 9.1% 9% Anchors MSA macro sites 166.5 172.3 174.4 +4.8% OLOs
Slide 10: Cash flow: structurally high cash conversion confirmed
Cash flow: structurally high cash conversion confirmed Q2 2022 cash flow build up (€m) Highlights ▪ +11% RFCF growth year on year ▪ Very limited residual tax cash-out to be paid in Q4’22 ▪ Stable NWC in 1H 2022, in line with expectations ▪ Growth capex focused on New Sites and land acquisition, incl
Slide 11: Positive impact on guidance driven by 2022 inflation scenario
Positive impact on guidance driven by 2022 inflation scenario ▪ INWIT MSAs offer strong protection in current inflationary environment Supportive ▪ Revenue CPI link (MSA with 0% floor and no cap ) + no impact from energy costs (pass-through in P&L) external scenario ▪ Sensitivity: +1% inflation lead
Slide 12: ESG: progress towards climate change and digital divide goals
ESG: progress towards climate change and digital divide goals GOVERNANCE PEOPLE ENVIRONMENT INNOVATION COMMUNITY Develop and maintain a Promote involvement, well- Reduce the environmental Act in support of operators Promote lower digital divide Sustainability governance framework being, safety and f
Slide 13: Visible growth path supported by a positive external scenario
Visible growth path supported by a positive external scenario ▪ Best in class assets - macro grid and micro grid ecosystem Best Tower ▪ Capex plan - expanding infrastructure at attractive returns assets ▪ Focus on shorter E2E roll-out process of new sites/new PoPs ▪ Two Tier-1 Anchors - partner 5G e
Slide 14: Annex
Annex 14
Slide 15: ESG: overview of Ratings and Index Memberships
ESG: overview of Ratings and Index Memberships ESG Index Membership 15
Slide 16: Well positioned in current inflationary environment
Well positioned in current inflationary environment Inflation impact on key variables % of 2021 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 85% (0% floor, no cap) OLOs, New Ser
Slide 17: Asset and cost optimization continues with tangible results
Asset and cost optimization continues with tangible results Tenancy ratio Lease cost per site1 EBITDAaL per site1 (€k) (€k) 24.4 25.0 22.6 8.7 8.6 8.4 1.95 2.05 2.09 Q2'21 Q1'22 Q2'22 Q2'21 Q1'22 Q2'22 Q2'21 Q1'22 Q2'22 EBITDAaL margin 66% 67% 68% Best in class tenancy ratio Strong track record Mate
Slide 18: Tax schemes: details on financial impacts
Tax schemes: details on financial impacts Recap of two tax schemes approved – mechanics and benefits in line with expectations Scheme details Upfront payment Cash benefits NPV IRR • Presented in November 2020 • 16% of goodwill • €568m lower taxes paid €150m • 22% 1 • Based on Law Decree 185/2008 • €
Slide 19: Strong cash generation and balance sheet optionality
Clear capital Strong cash generation and balance sheet optionality allocation framework Highlights RFCF guidance (mid-point) ▪ Visible organic RFCF growth driven by: (€m) ▪ EBITDAaL expansion ▪ Neutral NWC cycle ▪ Low recurring capex ▪ Tax benefits High-end of range >700 ▪ Capex plan with double-dig
Slide 20: Clear framework for deployment financial flexibility
Clear capital Clear framework for deployment financial flexibility allocation framework 1 More organic growth capex (on top of >€1bn capex plan) ▪ Real Estate / Land Buyout Focus Balance sheet flexibility: deployment framework ▪ Road/Rail/Harbour infrastructure (DAS) areas ▪ Small portfolios of macr
Slide 21: 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 Currency: €m (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) Revenues 103.0 184.4 186.1 189.9 190.2 192.9 198.1 203.9 207.0 210.7 1 TIM - MSA macro sites 66.3 80.4
Slide 22: Data book: Cumulated P&L
Data book: Cumulated P&L 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) Revenues 103.0 287.4 473.5 663.4 190.2 383.1 581.2 785.1 207.0 417.7 1 TIM - MSA macro sites 66.3 146.7 228.4 31
Slide 23: Data book: Balance Sheet
Data book: Balance Sheet 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) Goodwill 6,712 6,113 6,113 6,113 6,113 6,113 6,113 6,147 6,147 6,147 Tangible assets 783 778 798 812 802 815 821
Slide 24: Data book: Cash Flow
Data book: Cash Flow 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-2un) EBITDA Recurring 86.3 259.5 432.4 602.4 172.4 348.2 528.1 714.1 189.0 380.7 Recurring CAPEX (3.2) (3.8) (16.8) (1.8)
Slide 25: Data book: Operational KPIs
Data book: Operational KPIs 1Q20 2Q20 3Q20 4Q20 1Q21 1 2Q21 3Q21 4Q21 3 1Q22 2Q22 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 Figures in #k (Jan-Mar) (jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) Tenancy Ratio 1.96x 1.81x 1.84x 1.88x 1.91x 1.95x 1.98
Slide 26: More questions? Ask Investor Relations
More questions? Ask Investor Relations Fabio Ruffini Head of Investor Relations fabio.ruffini@inwit.it ir@inwit.it 26
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