Rai Way Spa · MIL:RWAY
Rai Way Spa — 9M 2024 Earnings Presentation
23 slides from Rai Way Spa's earnings presentation, Nov 13, 2024
Slide 1: 9M2024 Results Presentation
9M2024 Results Presentation 13th November 2024
Slide 2: Disclaimer
Disclaimer Forward-looking statements This presentation contains forward-looking statements regarding future events and the future results of Rai Way that are based on current expectations, estimates, forecasts, and projections about the industries in which Rai Way operates, as well as the beliefs a
Slide 3: Speakers
Speakers Roberto Cecatto, Chief Executive Officer Adalberto Pellegrino, Chief Financial Officer Giancarlo Benucci, Chief Corporate Development Officer /3/
Slide 4: Key messages
Key messages Financial Results – 9 Months trend in line with H1 and expectations: • Core Revenues up 1,1% vs 9M2023, with 3Q underlying Third-Party performance accelerating at +5% supported by CPI, regional frequencies and hosting services to FWA, MNOs and Radio Broadcasters • Adjusted EBITDA up 2,7
Slide 5: FOCUS ON: New Headquarters
FOCUS ON: New Headquarters Contract signed for a brand-new HQ in Rome • Located in the city center and able to host corporate functions • Ready by April 2025 • 9+9 years renting contract • 230 employees to be relocated • Ca. € 0.2m run-rate estimated yearly savings Rationale • Building up corporate
Slide 6: 9M2024 Financial highlights
9M2024 Financial highlights Core revenues (€m) Adjusted EBITDA (€m) Net Income (€m) Adjusted EBITDA margin +1,1% +2,7% 138,4 142,2 +1,0% 204,1 206,5 69,8 70,5 67,8% 68,9% 9M2023 9M2024 9M2023 9M2024 9M2023 9M2024 Capex1 (€m) Net Debt (Cash) (€m) Cash Conversion2 Net Debt/Adjusted EBITDA 27,5 148,2 2
Slide 7: Core revenues
Core revenues New breakdown +1,1% Underlying 9M growth at +3,3% (+3,9% in the • Media Distribution up 1,1% reflecting CPI-link on 204,1 206,5 3Q alone) RAI contract and contractual step-up in regional broadcasting networks contribution − Digital Infrastructure 23,3 23,6 +1,5% 182,8 • Digital Infrast
Slide 8: Opex (excluding non-recurring)
Opex (excluding non-recurring) • Personnel cost broadly flat YoY when excluding higher level of capitalization compared to 9M23 (€ +1,0m) -0,3% 66,1 65,9 • Other Operating costs up 2,0%: o Energy bill up 13,2% in 9M (+25,2% in 3Q) entirely due to higher prices following lack of incentives (tax credi
Slide 9: P&L 9M24 Net Income up by 1,0%
P&L Eur Mln, % 3Q2023 3Q2024 % YoY 9M2023 9M2024 % YoY Core Revenues 68,2 68,9 1,1% 204,1 206,5 1,1% Other Rev enues & income 1) 0,1 1,4 0,4 1,7 Adj. EBITDA 47,6 48,6 2,1% 138,4 142,2 2,7% • 9M24 Net Income up by 1,0% at € 70,5m: % margin 69,9% 70,6% 67,8% 68,9% o Higher Adj. EBITDA (+2,7% or +1,7%
Slide 10: Underlying adj. EBITDA growth (Δ vs 2023)
Underlying adj. EBITDA growth (Δ vs 2023) €m 1H24 3Q24 9M24 Δ Adj. EBITDA reported 2,8 1,0 3,8 Δ other rev enues - 1,3 1,3 • Underlying performance excluding Δ capitalized personnel 0,8 0,2 1,0 non-core effects and start-up costs confirms solid growth trajectory Δ energy tariffs -0,4 -0,8 -1,2 Δ oth
Slide 11: Net Debt bridge
Net Debt bridge IFRS-16 Debt 30,9m Gross Debt 133,9m Cash&Eq(5) -16,6m 148,2 IFRS-16 Debt 37,8m Gross Debt 101,5m Cash&Eq(5) -34,4m Mainly related to capex payment terms and tax 104,9 cycle 86,5 Including € 19,9m 0,81x of development 0,58x capex 6,6 (141,9) 34,5 5,0 28,3 24,5 Net Debt 2023YE EBITDA
Slide 12: Reiterating 2024 Outlook
Reiterating 2024 Outlook Outlook based on current level of power futures for 20241 • CPI-link (+0,7% for RAI contract) • Rising contribution from New Services to RAI Adjusted Growth of Adjusted EBITDA vs 2023, despite and broadcasting services to regional EBITDA new infra costs and lack of energy ta
Slide 13: Q&A Session
Q&A Session
Slide 14: Contacts
Contacts Andrea Moretti, Head of Investor Relations +39 335 530 1205 +39 06 331 70391 andreadanilo.moretti@raiway.it investor.relations@raiway.it www.raiway.it / Investors /14/
Slide 15: Appendix
Appendix
Slide 16: Detailed summary of 9M2024 Income Statement
Detailed summary of 9M2024 Income Statement (€m; %) 3Q23 3Q24 9M23 9M24 Core revenues 68,2 68,9 204,1 206,5 1 Other revenues and income 0,1 1,4 1,6 1,7 Purchase of consumables (0,3) (0,3) (0,9) (0,9) Cost of services (9,6) (10,8) (30,4) (29,9) Personnel costs (10,0) (10,0) (37,5) (33,5) Other costs
Slide 17: Summary of Balance Sheet as at 30 September 2024
Summary of Balance Sheet as at 30 September 2024 (€m) 2023FY 9M2024 (€m) 2023FY 9M2024 Non current assets Shareholders' Equity Tangible assets 297,4 294,2 Share capital 70,2 70,2 Rights of use for leasing 33,0 30,4 Legal reserves 14,0 14,0 Intangible assets 24,7 23,2 Other reserves 37,7 37,2 Financi
Slide 18: Balance Sheet as at 30 September 2024
Balance Sheet as at 30 September 2024 (3,9) (23,1) 321,5 Including rights of use 148,2 for leasing under IFRS- 16 (€ 30 m) 348,4 173,2 Net Fixed Assets(1) Net Net Funds(2) Net Invested Net Debt Equity Book Value Working Capital Capital 1) Including long-term financial items and the rights of use for
Slide 19: Summary of 9M2024 Cash Flow Statement
Summary of 9M2024 Cash Flow Statement (€m) 3Q2023 3Q2024 9M2023 9M2024 Profit before income taxes 34,8 32,9 97,6 98,9 Depreciation, amortization and write-downs 11,6 13,5 34,3 38,1 Prov isions and (releases of) personnel and other funds (0,8) 0,9 1,1 1,1 Net financial (income)/expenses 1,1 2,1 2,8 4
Slide 20: 2024-27 Industrial Plan Pillars
Enhance Rai Way positioning as media 2024-27 Industrial Plan Pillars distribution services and digital infra provider Media Digital 1) Strengthening traditional businesses/assets, by: Other assets Distribution Infrastructure 1.a) Taking advantage of selected growth • Network provider • Tower hosting
Slide 21: 2024–2027 Capital allocation
2024–2027 Capital allocation 2027 Target • Revenues growth doubling CPI contribution Traditional ~€ 98 Mln 6,5% • Adj. EBITDA +€24m vs ‘23 (+13%, CAGR +3,2%), with ca. Businesses / Development recurring maintenance assets Capex capex on sales level 150bps margin improvement • Rec. FCFE generation a
Slide 22: Industrial Plan pillars
New Industrial Plan addresses key levers to unlock Rai Way’s full pontential, while preserving its distinctive features… Pillars of Rai Way’s equity story 2024-27 Industrial Plan: addressed value levers Revenue Protection Best-in-class Cash generation predictability from macro profitability Strength
Slide 23: New Core revenues breakdown
Traditional ABC business/assets New Core revenues breakdown ABC Diversification areas Media Distribution Digital Infrastructure Other • RAI Service contract (fixed • Tower Hosting • Land valorization (solar energy consideration & new services) • Connectivity production, leases, …) • Broadcasting (re