Infrastrutture Wireless Italiane S.p.A. · MIL:INW
Infrastrutture Wireless Italiane — FY2018 Earnings Presentation
24 slides from Infrastrutture Wireless Italiane's earnings presentation, Feb 22, 2019
Slide 1: FY'18 Financial Results & Business Update
February 22, 2019 FY’18 Financial Results & Business Update GIOVANNI FERIGO – ANDREA BALZARINI – MICHELE VITALE
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 mentioned repeatedly in this presentation and include statements regarding the intent, belief or current expectati
Slide 3: Inwit keeps growing
Inwit keeps growing TENANCY RATIO REVENUES 1.9 x +6.1% FY’18 FY’18 YoY 378 1.9x 357 1.8x 334 1.7x 319 1.6x Tenant per tower €m FY‘15 FY‘16 FY‘17 FY‘18 FY‘15 FY‘16 FY‘17 FY‘18 FY’18 Financial Results 1 EBITDA Recurring FCF +12.2% +24.1% FY’18 YoY FY’18 YoY 158 215 128 192 102 144 164 74 €m €m FY‘15 F
Slide 4: Industrial Results
FY’18 Financial Results & Business Update Industrial Results FY’18 Financial Results & Business Update 4
Slide 5: Mid single digit revenue growth confirmed
Mid single digit revenue growth confirmed FY’18 Revenues 18.6 378.5 98.9 261.0 Euro Mln TIM OLO & Others New Sites and New Services Total (MSA on existing sites)1 (OLO on existing sites)2 (Includes TIM & OLOs contributions) 3 +1% +8% +77% +6% 378 99 357 319 334 258 261 Including non recurring 253 25
Slide 6: Lease cost reduction ongoing
Lease cost reduction ongoing FY’18 Operating Expenses 9.2 163.0 23.2 130.7 Euro Mln 1 Ground Lease Other Opex Personnel 2 Total OPEX -3% +6% +15% 175 -1% 151 141 135 set up of new businesses Headcount increase +20% 131 YoY mainly dedicated to 170 23 new business lines 22 22 19 165 Euro Mln 163 9 8 7
Slide 7: New tenants and Lease reduction key drivers for growth
New tenants and Lease reduction key drivers for growth 2 Avg Revenues per Site 3 Avg Lease Cost per Site k€ - annualized k€ - annualized +5% +19% -4% 13.5 -13% 33.9 32.4 12.7 30.0 12.2 28.5 11.7 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 New Tenants Cost Saving Tenancy Ratio 1 Lease Reduction # tenant
Slide 8: Industrial target fully met
Industrial target fully met New Sites TARGET MET 500 2018 # Sites Built YoY Growth 300 150 +67% 30 500 FY'15 FY'16 FY'17 FY'18 Small Cells & DAS # Remote Units1 2,400 YoY Growth 1,013 >2x 2,000 / 3,000 0 120 FY'15 FY'16 FY'17 FY'18 Backhauling # Backhauling Connections 600 YoY Growth >4x 600 140 0 0
Slide 9: 2015-18 plan: financial target fully met, even if with a different industrial mix
2015-18 plan: financial target fully met, even if with a different industrial mix TARGET FY’15-18 CAGR MET KEY DRIVERS FY’15-18 CAGR 2018 REVENUES OLO TREND STABLE GROWTH (ca.1k per year) MID +5.9% SINGLE DIGIT BUILT TO SUIT STABLE GROWTH (ca. 100 per year) FY’15-18 CAGR SMALL CELLS STRONG GROWTH (c
Slide 10: Financial Results
FY’18 Financial Results & Business Update Financial Results FY’18 Financial Results & Business Update 10
Slide 11: Sound and positive economic trends in all metrics
Sound and positive economic trends in all metrics FY'17 FY'18 YoY % Main KPIs Revenues 356.6 378.5 +6.1% TIM (MSA) ¹ 258.0 261.0 +1.2% OLOs & others ² 88.1 98.9 +12.3% REVENUES New Sites & Small Cells ³ 10.5 18.6 +77.5% OPEX (164.6) (163.0) (0.9%) +6.1% FY’18 YoY Ground lease (134.7) (130.7) (3.0%)
Slide 12: Main Achievements
Main Achievements EBITDA EBITDA Margin 53.8% 56.9% 12% 215 49.1% 49% 192 45.2% 1.9x 1.8x tenancy ratio 164 144 1.7x Euro Mln Euro Mln 1.6x 1 1 FY'15 FY'16 FY'17 FY'18 FY'15 FY'16 FY'17 FY'18 CAPEX Rec. FCF % CAPEX 70% 87% 92% 94% Development 158 62 128 55 Euro Mln 102 35 Lower Unitary CAPEX and Euro
Slide 13: Profit & Loss FY'18
Profit & Loss FY’18 378.5 163.0 Euro Mln 215.4 15.1 200.3 4.0 55.5 140.8 Revenues OPEX EBITDA D&A & Write EBIT Interest Taxes NET INCOME Off 4Q'18 94.6 -41.5 53.1 -4 49.1 -1 -13.1 35 EBIT Margin Solid performance that confirms the growth trajectory Best in class EBIT Margin 53% FY’18 FY’18 Financial
Slide 14: Cash Flow FY'18
Cash Flow FY’18 215.4 61.8 170 mln € Gross Debt All in cost: 55.9 slightly higher than 1% Euro Mln 113.4 17.5 1.8 EBITDA CAPEX Cash Taxes Δ Net Working Financial charges Cash Flow to Capital & others Equity3 4Q'18 53.1 -25.6 -29.8 +21.6 -0.5 18.8 Recurring FCF 1 Positive Cash Flow-to-Equity, for a s
Slide 15: Balance Sheet at December 31, 2018
Balance Sheet at December 31, 2018 1,412 5 99 7 1,597 48 1,548 720 Euro Mln 828 41 255 2 Tangible Other Fixed Goodwill NWC ARO Fund Other BS Total Net Net Debt Equity & Distributable Total Equity Assets Assets Items Assets Legal Reserves Reserves 1 Net Debt/EBITDA Intact financial flexibility 0.2x t
Slide 16: 2019-21 Plan
4Q’18 Financial Results & Business Update 2019-21 Plan FY’18 Financial Results & Business Update 16
Slide 17: 5G impact on Radio Access Networks
5G impact on Radio Access Networks Every node will evolve in each single component: from the antenna, to the customers segments, to the equipment up to the backhauling links New Antenna New Customers NEW CUSTOMERS OR BIGGER AND HEAVIER SMART METERING CITY HUB NEW ANTENNAS MASSIVE MIMO 5G ANTENNA 5G
Slide 18: Higher Densification Required
Higher Densification Required New network capability will push Data Consumptions and 5G frequencies will imply a significant densification, through both Macro-Cells and Small-Cells/DAS Data Consumption IoT Connected devices Smart cities, AR, VR, 4G 5G Industry 4., Cars, Homes 30% CAGR Objects Connec
Slide 19: Tower Sector Evolution
Tower Sector Evolution 5G will require to densify the network, implying a sound increase of network elements CAPEX Constraints will push MNOs to share more assets – chance for the industry to enlarge participation in the mobile access network value chain Italian Tower Market still Inefficient:
Slide 20: KPIs evolution - Inwit Stand Alone Scenario
KPIs evolution Inwit Stand Alone Scenario Target 2021 More MNO CUSTOMERS MORE New Tenants or 5G upgrades/amendments > 13,000 CUSTOMERS OLO Tenants or 5G upgrades More FWAs TENANTS since IPO Finalize nationwide coverage @ YE2018 = 10,150 MORE SITES NEW SITES > 10,000 Finalize and reinforce outdoor co
Slide 21: Targets - Inwit Stand Alone Scenario
Targets Inwit Stand Alone Scenario REC FCF > 200 mln € @2021 CAPEX 250 - 300 mln € CUMULATED 2019-2021 FY’18 Financial Results & Business Update 21
Slide 22: Dimension matters! TIM and Vodafone network sharing
and finally, long awaited, …. Vodafone Dimension matters! non-binding MOU signed between TIM and Vodafone for a new networking sharing partnership # of Towers Reason why 22k Big differentiation of the customer base, with a second anchor tenant, boosting visibility our cash flow INWIT 11k Become part
Slide 23: Q&A Session
Q&A Session Giovanni Ferigo CEO Andrea Balzarini CFO FY’18 Financial Results & Business Update 23
Slide 24: More questions? Ask Investor Relations
More questions? Ask Investor Relations Michele Vitale Head of Investor Relations michele.vitale@inwit.it f: +39 06 44084 320 FY’18 Financial Results & Business Update 24
Infrastrutture Wireless Italiane S.p.A. (INWIT) — FY2018 Earnings Presentation on 6ix