Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — Q1 2022 Earnings Presentation
23 slides from Infrastrutture Wireless Italiane's earnings presentation, May 5, 2022
Slide 1: Q1 2022 Financial Results
Q1 2022 Q1 2022 Financial Results May 5th 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: Q1 2022 results: further acceleration in financial KPIs
Q1 2022 results: further acceleration in financial KPIs Revenue cruising speed Leading EBITDAaL Strong Cash Flow achieved growth in the industry generation +9.1% +12.4% +36.0% Organic Revenue growth YoY EBITDAaL growth YoY RFCF growth YoY Continued execution of 67% EBITDAaL margin Benefits from tax
Slide 4: Anchor PoPs: common grid and new sites
Anchor PoPs: common grid and new sites Anchors – Total PoPs Anchors - New PoPs +8% (k PoPs) YoY (PoPs) 36.4 +2.9k 35.8 LTM 35.1 900 860 34.5 700 630 620 33.6 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Anchor clients: New Sites +400 LTM MSA committed PoP growth continues driven by co
Slide 5: OLOs' PoPs: +13% YoY growth driven by FWA and OTMO
OLOs’ PoPs: +13% YoY growth driven by FWA and OTMO Other Clients – Total PoPs Other Clients - New PoPs MNOs, FWAs, OTMOs +13% MNOs, FWAs, OTMOs (k PoPs) YoY (k PoPs) 10.4 +1.3k 10.2 LTM 450 9.8 360 9.5 290 300 9.2 230 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 MNOs – FWA OTMO Utilit
Slide 6: New Services: supportive demand for dedicated coverage
New Services: supportive demand for dedicated coverage New Services Revenues Dedicated Coverage – Addressable Mkt (€m) (locations) >2x >3k locations addressable YoY 7.5 7.6 6.0 280 1,200 750 Hospitals Public admin. Corporate 3.3 3.4 250 280 900 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Transport infra Entertain
Slide 7: 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 8: P&L: a further material pick-up in all metrics
P&L: a further material pick-up in all metrics (€m) Q1 2021 Q4 2021 Q1 2022 YoY Organic Revenue growth trend Total Revenues 190.2 203.9 207.0 +8.8% (% YoY) 9.1% 9% 7.2% One-off Revenues 0.6 1.7 0.0 6.0% 4.5% Recurring Revenues 189.7 202.3 207.0 +9.1% 3.4% Anchors MSA macro sites 164.1 167.3 172.3 +5
Slide 9: Cash flow: continued strong RFCF delivery
Cash flow: continued strong RFCF delivery Q1 2022 cash flow build up Highlights (€m) ▪ +36% RFCF growth year on year ▪ No cash taxes (payments in Q2 and Q4) ▪ Continuous optimization of Net Working Capital ▪ Structurally low recurring capex ▪ Lease cost payment cycle ▪ Growth Capex include highway t
Slide 10: 2022 and 2023-2026 targets confirmed
2022 and 2023-2026 targets confirmed Guidance 2022 Guidance 2023-2026 Growth (€m) (€m) 2021 2022 2022-2021 2023 2026 Margin1 (%) [on mid-point] Margin1 (%) Revenue 785 850-860 +9% Revenue 920-960 1,100+ 715 775-785 840-880 EBITDA +9% EBITDA 1,000+ 91% 91% 91% 520 585-595 650-690 EBITDAaL +13% EBITDA
Slide 11: 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 12: Annex
Annex 12
Slide 13: 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) 24.0 24.4 22.2 8.8 8.5 8.6 1.92 2.01 2.05 Q1'21 Q4'21 Q1'22 Q1'21 Q4'21 Q1'22 Q1'21 Q4'21 Q1'22 EBITDAaL margin 65% 67% 67% Best in class tenancy ratio Strong track record Mate
Slide 14: 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 15: Next Gen EU: visibility on incremental opportunities
Supportive Next Gen EU: visibility on incremental opportunities external scenario Italy Next Generation EU Missions and Projects: >€230bn1 Process and expected returns Digital Inclusion Mobility Education Green Health Call for tenders Participate to public call for tenders and apply to receive funds
Slide 16: 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 ▪ Capex plan with double-digit unlevered returns 70
Slide 17: 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 18: 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 Currency: €m (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) Revenues 103.0 184.4 186.1 189.9 190.2 192.9 198.1 203.9 207.0 TIM - MSA macro sites 1 66.3 80.4 81.7 81.7 82.1 83.6 8
Slide 19: Data book: Cumulated P&L
Data book: Cumulated P&L 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) Revenues 103.0 287.4 473.5 663.4 190.2 383.1 581.2 785.1 207.0 TIM - MSA macro sites 1 66.3 146.7 228.4 310.0 82.1 165.7 250.1
Slide 20: Data book: Balance Sheet
Data book: Balance Sheet 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) Goodwill 6,712 6,113 6,113 6,113 6,113 6,113 6,113 6,147 6,147 Tangible assets 783 778 798 812 802 815 821 876 877 Other intang
Slide 21: Data book: Cash Flow
Data book: Cash Flow 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) EBITDA Recurring 86.3 259.5 432.4 602.4 172.4 348.2 528.1 714.1 189.0 Recurring CAPEX (3.2) (3.8) (16.8) (1.8) (8.0) (11.6) (17.4)
Slide 22: Data book: Operational KPIs
Data book: Operational KPIs 1Q20 2Q20 3Q20 4Q20 1Q21 1 2Q21 3Q21 4Q21 3 1Q22 3M20 6M20 9M20 FY20 3M21 6M20 9M21 FY21 3M22 Figures in #k (Jan-Mar) (jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) Tenancy Ratio 1.96x 1.81x 1.84x 1.88x 1.91x 1.95x 1.98x 2.01x 2.05x Number
Slide 23: More questions? Ask Investor Relations
More questions? Ask Investor Relations Fabio Ruffini Head of Investor Relations fabio.ruffini@inwit.it ir@inwit.it 23
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