Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — Q3 2015 Earnings Presentation
22 slides from Infrastrutture Wireless Italiane's earnings presentation, Oct 27, 2015
Slide 1: 3Q 2015 Financial Results
Infrastrutture Wireless Italiane A Strong Signal Ready to do better 3Q 2015 Financial Results October 27, 2015
Slide 2: Safe Harbour
Safe Harbour This presentation contains statements that constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current
Slide 3: 3Q 2015 Financial Results Presentation
3Q 2015 Financial Results Presentation Oscar Cicchetti – CEO Rafael Perrino - CFO 2
Slide 4: Delivering Revenue Growth
Delivering Revenue Growth OLOs Revenues 6M YtD15: 32.1 mln € 2.7 158.8 29.4 126.7 Increase on historical Euro Mln OLOs Revenues (2014) 9% 6% 2Q 2015 6M YTD15 TI - MSA (1) OLOs 2014 (2) OLOs 2015 (3) 6M YTD15 (1) MSA = Master Service Agreement with Telecom Italia 3Q 2015 Inwit Financial Results (2) F
Slide 5: Revenue Growth Source #1: New Tenants
Revenue Growth Source # 1: New Tenants 4 YEARS OLOs TENANCY PLAN NINE MONTH 2015 New Tenants other than TI New Tenants other than TI >9 6.3 0.5 0.15 Thousands of tenants Thousands of tenants 6.3 of which 2.5 k On target for contracted contracted tenants cotenancy Several New Tenants other than contr
Slide 6: Revenue Growth Source #2: New Sites
Revenue Growth Source # 2: New Sites NEW SITES SITES INCREASE IN OCTOBER 64 New Sites New sites built by TI / Inwit (1) 104 120 Capex : ~ 3 mln € Capex per Site ~ 45/50 k € Euro Mln 69 64 On Air : Spread over 4Q 2015 and 2016 New Sites 31 2012 2013 2014 10/2015 12/2015 with only TI as a Tenant New S
Slide 7: Revenue Growth Source #3: New Business
Revenue Growth Source # 3: New Business HETNET & SMALL CELLS: #1 AGREEMENT Bologna Arcades • # Sites: 12 small cells based on DAS technology • Margin: Aligned vs. actual • Capex per Site: Lower than macro-site • Status: Sites under construction (on air within end of 2015) • Tenants: High tenancy rat
Slide 8: Delivering Efficiency
Delivering Efficiency Third Party Lease 6M YtD15: 63.7 mln € 87.7 2.5 3.8 67.2 3.5 5.5 Lease costs reduction vs 2014 Euro Mln 5.2% 5.1% 12.2 2Q 2015 6M YTD15 TI MSA - Lease Third Party Lease Ground Lease Maintenance Operating Costs Personnel 6M YtD15 Total FY2014 (1) Saving 2015 (2) OPEX (1) For the
Slide 9: Efficiency Driver #1: Site Decommissioning
Efficiency Driver # 1: Site Decommissioning 4 YEARS SITE DECOMMISSIONING PLAN 2015 DECOMMISSIONING: STATE OF THE ART 2015 Site 130 462 decommissioning Marketable status 43 1,440 455 New On Air Potential 480 Tenants Number of sites 269 To be 53 10 462 To be decommissioned Dismantled dismantled and di
Slide 10: Efficiency Driver #2: Lease Renegotiations
Efficiency Driver # 2: Lease Renegotiations RENEGOTIATION RESULTS RENEGOTIATION AMONG DIFFERENT LEVERS # Average discount on total renegotiated 48 preliminary contracts 21% 20% 19% Few hundreds Agreements under negotiation 2014 1H 2015 3Q 2015 Net Savings # Contract renegotiated Land thousands 0.5 A
Slide 11: 3Q 2015 Financial Results Presentation
3Q 2015 Financial Results Presentation Oscar Cicchetti – CEO Rafael Perrino - CFO 10
Slide 12: Financial Overview
Financial Overview Inwit started operations at the beginning of April, after TI’s contribution of Tower Business so the Financials as at September 30, 2015 represents the results of a quarter. (1) 6 month Pro-forma 2014 is used as a reference to analyze the economic performance of the business in th
Slide 13: P&L (6M YtD15)
P&L (6M YtD15) 44.8% 43.5% 42.9% 6M 2014PF 6M15 Exp. 6M YTD15 EBIT Net Income Margin All-in cost 1.33% on sales EBITDA Margin 6M YtD15 44.8% 41.5% 27.5% 158.8 87.7 Euro mln 71.1 0.7 5.6 65.5 20.8 1.1 42.9 Revenues OPEX EBITDA D&A EBIT Financial Non-Cash Items Tax Net Income (1) charges 42.9 mln € Ne
Slide 14: Cash Flow Generation (6M YtD15)
Cash Flow Generation (6M YtD15) No Cash Taxes being a new incorporated 71.1 1.9 company 8.7 0.0 0.7 59.8 Euro Mln QoQ NWC Improvement (+6.7 mln €) EBITDA-Capex equals to 69 mln € and cash conversion of 97% (1) EBITDA Capex Δ Net Working Capital Cash Taxes & Others Financial charges Cash Flow to Equi
Slide 15: Balance Sheet (at 30 Sept 2015)
Balance Sheet (at 30 sept 2015) Equivalent to 1.1 € per share 1,404 17 95 23 1,483 60 763 1,423 Euro Mln 660 180 Tangible Goodwill NWC ARO Fund(1)Other Funds Total Net NFP Equity(2) Distributable Total Equity Assets Assets reserves 60.1 mln € Net Debt at September 30, 2015 < 0.4x Net Debt / EBITDA r
Slide 16: Thank You Q&A session
Thank You c AS) a 7 ® 7 <x o oO
Slide 17: Back Up
Back Up 3Q 2015 Inwit Financial Results 16 Oscar Cicchetti, Rafael Perrino
Slide 18: World Tower Market Overview
World Tower Market Overview Mobile Operators JV infraCos Independent Tower Operators ~ 600 ~ 60 ~ 1,200 ~ 60 ~ 50 Thousands of sites Thousands of sites ~ 45 ~ 45 ~ 250 ~ 150 ~ 450 ~ 150 70% ~ 150 15% 15% 10% 20% 20% 50% 15% 80% 45% 10% 75% 30% 5% 20% EUROPE UK FR D ITA ES USA LatAm CHINA INDIA ASIA
Slide 19: Inwit Tower Portfolio
Inwit Tower Portfolio “A” SITES “B” SITES “A” Sites located in low density population areas, “B” Sites located in high density population areas, predominantly with less than 50 k inhabitants predominantly with more than 50 k inhabitants 7,416 4,103 Towers 2014 Sites Sites Ratio 2014 1.63x 1.4x ~6 k
Slide 20: Inwit Pillars
Inwit Pillars SOLID CASH GENERATION POTENTIAL UPSIDE HIGH VISIBILITY ON REVENUES NEXT GEN. WIRELESS INFRASTRUCTURES Long Term Contracts Sharing Infrastructure (> 80% of revenues from a 24 years contract (Small Cells, DAS, …) with TI) New contracted tenancy Sharing Networks (IoT, GSM, … ) (2.5 k Tena
Slide 21: Consolidation and potential decommissioning
Consolidation and potential decommissioning Mob Operator 1 Mob Operator 1 Mob Operator 2 Mob Operator 2 Land Owner 1 Land Owner 2 Land Owner 1 Land Owner 2 (+) Rev from mob op 1 (+) Rev from mob op 2 (+) Rev from mob op 1 (+) Rev from mob op 2 (-) Lease cost with Land Owner 1 (-) Lease cost with Lan
Slide 22: Small Cells Demand Evolution
Small Cells Demand Evolution NEED FOR DENSIFICATION SMALL-CELLS vs MACRO-CELLS • High increase of data users and usage • Macro-cells need for umbrella coverage • Limits on traffic and contemporary user per • Small-cells closer to final customer (higher macro-cell throughput, lower jitter, less densi
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