Rai Way Spa · MIL:RWAY
Rai Way Spa — 9M 2022 Earnings Presentation
19 slides from Rai Way Spa's earnings presentation, Nov 10, 2022
Slide 1: 9M2022 Results Presentation
9M2022 Results Presentation 10 November 2022
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: Rai Way participants
Rai Way participants ● Aldo Mancino, Chief Executive Officer ● Adalberto Pellegrino, Chief Financial Officer ● Giancarlo Benucci, Chief Corporate Development Officer 9M2022 Results Presentation 3
Slide 4: Key messages on 9M2022
Key messages on 9M2022 ● 9M2022 top-line up 7,4% (or +6,2% excluding ca. € 2m one-off benefit) driven by: o CPI-link FINANCIAL RESULTS o Full impact of the refarming-related step-up in RAI contract (effective from 2H2021) o Over 9% third-party revenues growth (+17% in 3Q) boosted by new regional MUX
Slide 5: 9M2022 Financial highlights
9M2022 Financial highlights Mln Eur; % % YoY growth Core Revenues Adjusted EBITDA Net Income Adjusted EBITDA margin +7,4% +6,6% +5,2% 52,8 56,3 171,8 184,4 115,7 110,0 64,0% 62,7% 59,4% 9M2021 9M2022 9M2021 9M2022 9M2021 9M2022 Capex Net debt (Net Cash) Cash conversion(2) 55,5 Net Debt / Adjusted EB
Slide 6: Core Revenues
Core Revenues Mln Eur; % % YoY growth +7,4% ● RAI Fixed Consideration up 7,5% (or 6,1% excluding € 2,0m one- 184,4 off amount paid by RAI in 3Q to terminate a minor service 171,8 25,6 +9,4% related to an old radio transmission technology) driven by CPI Third-Parties 23,4 escalator and full impact of
Slide 7: Opex (excluding non-recurring)
Opex (excluding non-recurring) Mln Eur; % % YoY growth +10,9% 69,1 62,3 ● Excluding non-core items and lower capitalization compared to 2021, stable underlying personnel cost 31,8 +0,5% Personnel costs 31,7 ● Severe headwinds from electricity bill up € 7,2m vs 9M2021 (€ 6,1m in 3Q only) with impact
Slide 8: P&L
P&L Eur Mln, % 3Q2021 3Q2022 % YoY 9M2021 9M2022 % YoY Core Revenues 58,4 63,2 8,1% 171,8 184,4 7,4% Other Revenues & income (1) 0,0 0,1 0,5 0,4 Adj. EBITDA 40,1 37,5 -6,6% 110,0 115,7 5,2% ● 9M2022 Net Income up by 6,6% % margin 68,7% 59,4% 64,0% 62,7% at € 56,3m as a result of: Non recurring costs
Slide 9: Net Debt bridge
Net Debt bridge Mln Eur Net Debt/ 1y rolling Adj. EBITDA IFRS-16 Debt 36,7m Gross Debt 101,7m Cash&Eq(5) -16,2m 122,2 87,9 65,1 9,7 0,82x 10,2 Including € 35,0m 0,61x (115,7) development 0,9 capex 22,2 41,9 Net Debt 2021YE EBITDA Capex(1) Taxes(2) Financial Δ NWC Funds & Dividend Net Debt @ charges(
Slide 10: Electricity prices vs CPI escalator protection
Electricity prices vs CPI escalator protection (as of 9 November 2022) ILLUSTRATIVE PURPOSE ONLY Simulation on impact of electricity prices CPI contribution to revenues ~24 ~21 X ~ 4-5 ~ 13 ~ 35 ~ +27 11,8 +/- 8,7 X 5,4 ~ +8 2,1 2021A 1QA 2QA 3QA 4QE 2022E Electricity price net of: 2023E CPI Contrib
Slide 11: Guidance 2022 updated
Guidance 2022 updated REVENUES ● Mid-single-digit revenue growth driven by investments in refarming, both for RAI and third parties, and CPI ADJUSTED EBITDA ● Adjusted EBITDA growth now expected stronger following reduction in electricity prices since October, current level of power futures for the
Slide 12: Strategy and ambitions confirmed in current environment
Strategy and ambitions confirmed in current environment Contractualized revenues provide high visibility and cash generation Unchanged Resiliency commitment to of the business capital deployment model Supportive scenario • Top-line not linked to economic cycle • Net benefit from inflation • Digitali
Slide 13: Q&A session
Q&A session 9M2022 Results Presentation 13
Slide 14: Contacts
Contacts - Investor Relations +39 06 331 73973 +39 06 331 74815 investor.relations@raiway.it 9M2022 Results Presentation 14
Slide 15: Appendix
Appendix 9M2022 Results Presentation 15
Slide 16: Balance sheet
Balance sheet Mln Eur Including rights of use for leasing under IFRS-16 (€ 30,7 m) (4,2) (23,6) 280,6 122,2 308,4 158,4 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 leasing introd
Slide 17: Detailed summary of Income Statement
Detailed summary of Income Statement (€m; %) 3Q21 3Q22 9M21 9M22 Core revenues 58,4 63,2 171,8 184,4 Other rev enues and income 1 0,0 1,5 0,5 1,8 Purchase of consumables (0,3) (0,4) (1,0) (1,0) Cost of serv ices 2 (8,8) (16,5) (27,6) (35,7) 2 Personnel costs (8,5) (9,5) (31,7) (31,8) Other costs (0,
Slide 18: Summary of Balance Sheet
Summary of Balance Sheet (€m) 2021FY 9M2022 (€m) 2021FY 9M2022 Shareholders' Equity Non current assets Tangible assets 244,5 260,5 Share capital 70,2 70,2 Rights of use for leasing 31,5 30,7 Legal reserv es 14,0 14,0 I ntangible assets 17,2 15,3 Other reserv es 37,3 38,0 Financial assets, holdings a
Slide 19: Summary of Cash Flow Statement
Summary of Cash Flow Statement (€m) 3Q2021 3Q2022 9M2021 9M2022 Profit before income taxes 27,2 26,9 72,2 78,5 Depreciation, amortization and w rite-dow ns 12,5 10,2 36,7 35,9 Prov isions and (releases of) personnel and other funds (0,9) 0,9 0,9 0,3 Net financial (income)/expenses 0,4 0,4 1,0 1,2 Ot