Unidata S.p.a. · MIL:UD
Unidata — Investor Presentation (November 2022)
44 slides from Unidata's investor presentation, Nov 28, 2022
Slide 1: Company Presentation
28TH NOVEMBER 2022 COMPANY PRESENTATION
Slide 2: Index
INDEX KEY HIGHLIGHTS ACQUISITION OF TWT MAIN PROJECTS OVERVIEW BUSINESS PLAN APPENDIX INVESTOR PRESENTATION 2
Slide 3: Key Highlights
KEY HIGHLIGHTS INVESTOR PRESENTATION
Slide 4: A leading and integrated infrastructure player
A LEADING AND INTEGRATED INFRASTRUCTURE PLAYER… VALUE PROPOSITION KEY OPERATIONAL DATA Unidata is a Fiber Company, leader in Telecommunications, Cloud & IoT Datacenter Customer Base over 5,200 km over 14,900 property >80% business optical fiber laid1 customers1 TIER IV customers2 Fiber & Cloud & IoT
Slide 5: With further potential to be exploited
…WITH FURTHER POTENTIAL TO BE EXPLOITED ACQUISITION OF TWT ON-GOING INVESTMENTS • Integrated TLC, connectivity and ICT operator specialized in B2B segment FTTH networks for 2020- ~Eu 7.0 mn • TWT operates across all Italy with a strong presence in Northern regions 2022 residential and thanks to a hi
Slide 6: Unidata & TWT: strong industrial rationale & complementarity
UNIDATA & TWT: STRONG INDUSTRIAL RATIONALE & COMPLEMENTARITY Thanks to TWT’s integration, Unidata will… Domestic reach, with a become a primary Geography Central Italy & recent strong presence national player expansion in Apulia in Lombardy develop into a one-stop- shop for corporates & Commercial c
Slide 7: Acquisition of TWT
ACQUISITION OF TWT INVESTOR PRESENTATION
Slide 8: TWT at a glance
TWT AT A GLANCE Brief description Selected information • Founded in 1995 in Milan, TWT is a primary Italian TLC, connectivity and ICT services operator specialized in the B2B segment1 Sale channels Proprietary platform +33.000 • TWT operates across all Italy with a strong presence in Northern Direct
Slide 9: TWT's distinctness and diversified offering
TWT’S DISTINCTNESS AND DIVERSIFIED OFFERING ENHANCED B2B FOCUS THANKS TO TWT’S POSITIONING IN THE CORPORATE AND RESELLER MARKETS CHARACTERISTICS DISTINCTIVE +33.000 Direct & indirect clients Datacenter Proprietary platform High cash conversion TIER 3+ located in TWT’s internally-developed and asset-
Slide 10: Wide geographical footprint in Italy
WIDE GEOGRAPHICAL FOOTPRINT IN ITALY Corporate clients Final clients through resellers High High ~67% corporates based in Lombardy Low Low Geographical reach complementary with Unidata’s thanks to TWT’s strong footprint in Northern Italy with a long-lasting presence in Lombardy (Italy’s richest regi
Slide 11: Strategic rationale of the transaction
STRATEGIC RATIONALE OF THE TRANSACTION PENETRATION IN NORTHERN ITALY AND EXPANSION OF SALESFORCE FIREPOWER TO BECOME AN INTEGRATED NATIONAL PLAYER Value-accretive transaction POTENTIAL INDUSTRIAL SYNERGIES (Indicative) From a Rome-based infrastructure to a national integrated player Preliminary obje
Slide 12: Structure of the transaction – preliminary consideration
STRUCTURE OF THE TRANSACTION – PRELIMINARY CONSIDERATION 10.1 (8.0) (8.0) Estimated adjusted To cover: (a) a net cash after due potential liabilities diligence activities or (b) a potential additional 68.1 (Eu mn) consideration to be 58.0 paid60.1 to TWT’s 60.1 shareholders 52.1 Enterprise Prelimina
Slide 13: Main Projects Overview
MAIN PROJECTS OVERVIEW INVESTOR PRESENTATION
Slide 14: Unifiber
UNIFIBER Founded in 2020 as part of the greenfield broadband project Unifiber with an additional investment in 2022 OBJECTIVE: to deploy high-quality fiber-to-the-home (FTTH) networks for residential and business customer in areas characterized by digital divide (the so-called “grey areas”) of Latiu
Slide 15: Unicenter (JV with Azimut)
UNICENTER (JV WITH AZIMUT) OBJECTIVE: construction of a green and neutral Tier IV level datacenter with a power of about 16 MW and with 3,200 rack capacity, for a total area of 20,000 sqm with domestic and international customer base using renewable energy sources to the maximum extent possible Tota
Slide 16: Unitirreno
UNITIRRENO OBJECTIVE: construction of a system of underwater cables in the Tyrrhenian Sea of about 890km that will connect Mazara del Vallo (western coast of Sicily) with Genoa with a junction point near Rome - Fiumicino Total investment equal to Eu 70 million, of which Eu 36 million through equity.
Slide 17: Business Plan Update
BUSINESS PLAN UPDATE INVESTOR PRESENTATION
Slide 18: Growth Strategy
GROWTH STRATEGY Organic Growth Opportunities Development of Value-Added Sectors ▪ New infrastructure Partnerships / Additional ▪ Access and VoIP M&A Opportunities services Earning Retention to ▪ Cloud Sustain Investments ▪ Consolidation of ▪ Datacenter market positioning ▪ IoT & Smart Solutions ▪ In
Slide 19: 2025 Target Revenues & EBITDA
2025 TARGET REVENUES & EBITDA + 2021A 2022F 2025W 2025B 2022F Agg. 2025W 2025B Revenues ~Eu 37mn ~Eu 51.8mn ~Eu 72mn ~Eu 75mn ~Eu 110.7mn ~Eu 128mn ~Eu 134mn CAGR 22-25 (%) ~12% ~13% ~5% ~7% EBITDA ~Eu 14mn ~Eu 15.1mn ~Eu 23mn ~Eu 25mn ~Eu 22.1mn1 ~Eu 34mn ~Eu 36mn CAGR 22-25 (%) ~15% ~18% ~15% ~18%
Slide 20: Unidata's 2025 targets by stream of revenues
UNIDATA’S 2025 TARGETS BY STREAM OF REVENUES Business lines Revenues 2022 Revenues 2025 Description € ~13.7mn € 29.4 – 30.8mn ▪ Includes Consumers, Business, Wholesale and P.A. clients' revenues from TLC & ICT services Services Fiber network construction - Unidata and Unifiber € ~28.6mn € 31.7 – 33.
Slide 21: A leading integrated telco focused on fiber
A LEADING INTEGRATED TELCO FOCUSED ON FIBER CUTTING EDGE NETWORK: focus on FTTH technology, with no risk of disruptive changes and limited maintenance capex in the long run STRATEGIC LOCATION: capillary future-proof FTTH network in the largest and most complex market for P.A. and residential clients
Slide 22: Appendix
APPENDIX INVESTOR PRESENTATION
Slide 23: Unidata's wide range of offerings for corporate, retail and B2B clients
UNIDATA’S WIDE RANGE OF OFFERINGS FOR CORPORATE, RETAIL AND B2B CLIENTS OFFERINGS Fiber & Cloud & IoT & Smart Infrastructure Cyber Managed Networking Datacenter Solutions Development Security Services P.A. & Business ~2,000 clients C Average monthly ARPU1 in 1H 2022: ~Eu 5042 U S T ~13 clients Whole
Slide 24: A cutting edge network
A CUTTING EDGE NETWORK… THE COMPANY’S FIBER OPTIC INFRASTRUCTURE COVERS OVER 5,200 KM CONNECTING STRATEGIC DISTRICTS • ~80% is owned by the company • ~20% is available indirectly through IRU1 agreements with other wholesale providers • ~60 Points of Presence • > Eu 54mn invested to build, develop an
Slide 25: ...in an area with high potential
…IN AN AREA WITH HIGH POTENTIAL STRATEGIC LOCATION FOR BOTH NETWORK AND CLIENTS • First mover in fiber optic (FTTH) and radio (Fixed Wireless Access) infrastructure in the province of Rome • Proprietary network in strategic location • No availability to replicate the infrastructure by competitors bo
Slide 26: Attractive risk-return profile
ATTRACTIVE RISK-RETURN PROFILE INFRASTRUCTURE, FIBER AND DATACENTER SERVICES Strong visibility on IRR Renowned reputation Key anchor client Well-established in Rome with Upfront capex with guaranteed Open Fiber (state-owned company) strong brand awareness and returns and stronger capital with target
Slide 27: Unidata's scalable business model
UNIDATA’S SCALABLE BUSINESS MODEL HIGH DEGREE OF OPERATING LEVERAGE AND SPARE CAPACITY TO SERVE CLIENTS WITHOUT ADDITIONAL INVESTMENTS Geo-marketing activities for the evaluation of new geographical Scouting areas to be covered and new customer targets to be reached Planning and Strategic investment
Slide 28: ESG
ESG IN THE LAST TWO YEARS, UNIDATA HAS ACCELERATED ITS JOURNEY TOWARDS SUSTAINABILITY Achieved certifications ▪ 2nd Sustainability Report published (FY2021) and identification of the ESG objectives to achieve ▪ Implementation of corporate’s Sustainability Factors ▪ Unidata became a Benefit Company I
Slide 29: Shareholders & Governance
SHAREHOLDERS & GOVERNANCE Renato Brunetti Marcello Vispi President and CEO Giampaolo Rossini Vice-President CTO BOARD OF R. Brunetti DIRECTORS UNINVEST S.r.l.1 Paolo Bianchi Stefano Ciurli Member Board of Non-Executive Member Directors Board of Directors C. Bianchi Barbara Ricciardi Alessandra Bucci
Slide 30: Key Financial Highlights
Financial KEY FINANCIAL Highlights HIGHLIGHTS FY2021 3Q 2022 +71% +26% Accrued Revenues Customer Growth 14.5 M€ vs 8.5 M€ in 3Q2021 14,934 vs 11,865 in 3Q2021 +260km 5.8M€ Optical Fiber Net Debt >5,200 km vs 3,904 in 3Q2021 vs 2.2 M€ in FY2021 INVESTOR PRESENTATION 30
Slide 31: Strong revenues generation driven by customers increase
Financial STRONG Highlights REVENUESFY2021 GENERATION DRIVEN BY CUSTOMERS INCREASE • Increasing volumes related to optical fiber infrastructure Revenues 1H 2022 breakdown by line of business development Fiber & Networking • Customer growth especially in Business & P.A. (+13% YoY) and 30.5% Infrastru
Slide 32: Outstanding and continuous growth (1/2)
OUTSTANDING AND CONTINUOUS GROWTH (1/2) EBITDA & Margin EBITDA bridge 39.3% 38.1% 36.8% 14.1 25.7% 25.9% 8.6 EBITDA EBITDA 5.2 5.6 1H 2021 1H 2022 3.6 • The improvement in EBITDA in 1H 2022 is mainly due to 2019A 2020A 2021A 1H 2021 1H 2022 the increase in network construction activity, which result
Slide 33: Outstanding and continuous growth (2/2)
OUTSTANDING AND CONTINUOUS GROWTH (2/2) EBIT & Margin Net Income & Margin 24.6% 20.9% 21.2% 15.9% 9.1 14.1% 14.5% 7.8 10.8% 10.6% 9.7% Extraordinary ~1.8 fiscal impact 4.9 3.0 3.4 3.0 2.1 2.1 1.5 1.4 ~1.8 1 1 2019A 2020A 2021A 1H 2021 1H 2022 2019A 2020A 2021A 1H 2021 1H 2022 EBIT Margin (%) Net Inc
Slide 34: Unidata's income statement
UNIDATA’S INCOME STATEMENT (Eu mn) 1H 2022 1H 2021 Δ YoY (%) Revenues 20.8 13.7 52.2% Other revenues 0.8 0.5 47.9% Total Revenues 21.6 14.2 52.0% Purchase of raw materials and consumables (5.2) (3.8) 39.5% Purchase of services (8.4) (4.3) 96.0% Personnel costs (1.8) (1.7) 8.1% Other operating costs
Slide 35: Unidata's balance sheet
UNIDATA’S BALANCE SHEET (Eu mn) 1H 2022 2021A Δ YoY (%) (Eu mn) 1H 2022 2021A Δ YoY (%) Other intangible assets 0.5 0.6 -29.2% Share Capital 2.5 2.5 0.0% Legal reserve 0.5 0.4 10.7% Fixed assets for right use 9.0 9.3 -3.1% Extraordinary reserve 0.1 0.1 0.0% Property, plant and equipment 36.3 33.1 9.
Slide 36: Limited financial exposure
LIMITED FINANCIAL EXPOSURE 5.2% 8.7% Net Debt / (tang. + Net Debt / (tang. + intangible assets) intangible assets) Net Cash/ Net Cash/ (Net debt) (Net debt) Dec ‘21 Jun ‘22 INVESTOR PRESENTATION 36
Slide 37: Attractive market with strong growth potential
ATTRACTIVE MARKET WITH STRONG GROWTH POTENTIAL THE BROADBAND & ULTRABROADBAND MARKET IS RAPIDLY SHIFTING LINES FROM DSL TO FWA, FTTC AND FTTH TECHNOLOGIES WHICH ARE UNIDATA CORE BUSINESS FTTH 20.2% +34.3% YoY FWA FTTC 11.4% 34,7% 68.4% +5.8% YoY 50,1% 59,3% 69,7% 72,3% 74,4% 75,9% 78,1% +5.4% YoY 79
Slide 38: Rapidly growing cloud market
RAPIDLY GROWING CLOUD MARKET DIGITAL TRANSFORMATION AND BUSINESS MODEL INNOVATION Companies stand investing in cloud technologies to modernize Cloud is the technology with the strongest enabling role in major applications and systems to leverage on scalability, flexibility and time to digitalization
Slide 39: Details on TWT (1/5)
DETAILS ON TWT (1/5) STRATEGIC RATIONALE OF THE TRANSACTION • Value-accretive transaction for Unidata’s shareholders, in line with the Company’s growth path outlined during the 2020 IPO STRONG • From a Rome-based infrastructure company to a national integrated player in the TLC & ICT sector TRANSACT
Slide 40: Details on TWT (2/5)
DETAILS ON TWT (2/5) TWT’S DISTINCTNESS AND DIVERSIFIED OFFERING • Integrated TLC, connectivity and ICT operator specialized in the B2B segment • Diversified domestic customer base, mainly in Northern Italy: ~33k clients o/w ~3.3k SME and corporates and ~30k final clients through ~370 accredited res
Slide 41: Comprehensive product offering
DETAILS ON TWT (3/5) Dedicated solutions Shared solutions • Dedicated optic fiber solutions for customers that request • Shared FTTH, FTTC or ADSL connections based on clients’ CONNECTIVITY broadband speed > 10 Gbps needs and geographical location SERVICES • Last mile radio point-to-point connection
Slide 42: TWT's journey towards a leading B2B TLC & ICT Italian operator
DETAILS ON TWT (4/5) TWT’S JOURNEY TOWARDS A LEADING B2B TLC & ICT ITALIAN OPERATOR Focus on developing indirect networks / new Launch of channels TWT wholesale (data carriers & moved to data foreign resellers) Launch of Viale carrier VoIP Jennifer’s activities services for HQ TRON: Internet corpora
Slide 43: Transaction perimeter
DETAILS ON TWT (5/5) TRANSACTION PERIMETER Marco Rodolfi & Michela Colli1 100% 100% Voisoft S.r.l. Berenix S.r.l. Provider of administrative, HR and financial services to the other group’s entities Software development and R&D 100% 100% Real Estate Services TWT S.p.A. Domitilla S.r.l. Infra group co
Slide 44: Disclaimer
Disclaimer This document has been prepared by UNIDATA S.p.A. (the “Company”) solely for information purposes. It contains summary information only and is therefore preliminary in nature. It has also been prepared without any intention of being exhaustive. THIS PRESENTATION AND THE ASSOCIATED VERBAL