Infrastrutture Wireless Italiane S.p.a. · MIL:INW

Infrastrutture Wireless Italiane — Q1 2021 Earnings Presentation

20 slides from Infrastrutture Wireless Italiane's earnings presentation, May 13, 2021

  1. Slide 1: Q1 2021 Financial Results

    Q1 2021 Q1 2021 Financial Results May 13th 2021 1

  2. 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

  3. Slide 3: Q1 highlights: improving KPIs, strong EBITDAaL

    Q1 highlights: improving KPIs, strong EBITDAaL Improving New Progress in Small Continued Lease Cost Points of Presence Cells/DAS Optimization 1.2k 400 400 New Tenants Remote Units Renegotiations/acquisitions Anchors accelerating 2x vs Q4 2020 Tangible results in P&L Steady Acceleration in Significan

  4. Slide 4: Q1 PoPs: growth driven by Common Grid

    Q1 PoPs: growth driven by Common Grid New PoPs - Anchors1 New PoPs - Other Parties (MNOs, FWAs, OTMO)1 +5% +10% 33.6k YoY "New" INWIT YoY "New" INWIT 860 9.2k EoP figure impacted by 520 440 terminations 300 360 210 150 100 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1'21 EoP Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1'21 EoP A

  5. Slide 5: Tenancy + cost efficiency delivering best in class margins

    Tenancy + cost efficiency delivering best in class margins Tenancy ratio Lease cost per site1 EBITDAaL per site1 (€k) (€k) 21.3 22.2 9.4 8.8 1.81 1.92 Q2'20 Q1'21 Q2'20 Q1'21 Q2'20 Q1'21 EBITDAaL margin 64% 65% Best in class tenancy ratio Strong track record Material and highly visible in lease cost

  6. Slide 6: Q1 DAS/Small cells: solid foundation for future growth

    Q1 DAS/Small cells: solid foundation for future growth New Small cells / DAS DAS sales organization and commercial proposition (# Remote Units) • Sales organization with a team of 15 and a network of 11 agencies • Commercial model expanding to location owners 4.9k +39%YoY • Opportunities ahead from

  7. Slide 7: Next Generation EU supportive of INWIT growth

    Next Generation EU supportive of INWIT growth Nov. 2020 Business Plan Italy Next ItalyGeneration Next Generation EU Missions EU Missions and Projects: and Projects >€230bn1 GROWTH PILLARS 1 2 3 4 Digital Inclusion Mobility Education Green Health PARTNER SERVE SCALE PILOT €50bn €30bn €31bn €34bn €70b

  8. Slide 8: Q1 P&L: continued pace of growth, acceleration expected

    Q1 P&L: continued pace of growth, acceleration expected (€m) Q4 2020 Q1 2020 PF Q1 2021 YoY Revenue Drivers • Organic growth rate at +3.4% YoY Total Revenues 189.9 190.3 190.2 • Run-rate improvement, as P&L progressively reflects new PoPs One-off Revenues 1.4 6.8 0.6 • OLOs reflect impact of custome

  9. Slide 9: Q1 Cash flow: strong cash generation continues

    Q1 Cash flow: strong cash generation continues Q1 2021 RFCF build up (€m) Q1 2021 cash generation highlights • Cash conversion at 54% of EBITDA (tax cash out in Q2 and Q3) 172.4 0.0 -18.2 -1.8 -51.1 • Limited capex following significant amount in Q4’20 (€13m) • Temporary move in NWC -8.3 93.1 • 46%

  10. Slide 10: Financial structure further improved by recent refinancing

    Financial structure further improved by recent refinancing Net Financial Position and Leverage Ratio1 Deleveraging trend offering optionality (€bn) 6x 4500 4.0 8 3.8 3.7 3.6 7,5 Flexibility to finance external 4000 5.6x growth or additional remuneration 3500 1.1 7 5.4x 3000 1.0 1.1 1.0 6,5 5.8x 6 4.

  11. Slide 11: Structural growth path confirmed

    Structural growth path confirmed • Two Tier-1 anchors + neutral host role Key • High tenancy ratio strengths today • Lean organization, low OpEx • Low ground lease cost • Strong demand, 5G, FWA, DAS Further + growth drivers • • Further ground lease optimization Benefits from tax schemes • Improving

  12. Slide 12: INWIT: enabling digital growth

    INWIT: enabling digital growth 1. Best infrastructure assets - key competitive advantage 2. Strong position to capture 5G/digitalization opportunities 3. Focus on strong and sustainable organic growth 4. Attractive shareholder remuneration Direct and indirect impact on 5. Consistent deleveraging all

  13. Slide 13: Thank You

    Thank You 13

  14. Slide 14: Appendix

    Appendix 14

  15. Slide 15: Data book: Quarterly P&L

    Data book: Quarterly P&L Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Currency: €m (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) Revenues 103.0 184.4 186.1 189.9 190.2 TIM - MSA macro sites 1 66.3 80.4 81.7 81.7 82.1 1 VOD - MSA macro sites 80.9 81.7 81.8 82.0 OLOs macro sites & Others 2 24.4 21.1 20.6 23.3 22

  16. Slide 16: Data book: Cumulated P&L

    Data book: Cumulated P&L 3M20 6M20 9M20 FY20 3M21 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) Revenues 103.0 287.4 473.5 663.4 190.2 TIM - MSA macro sites 1 66.3 146.7 228.4 310.0 82.1 1 VOD - MSA macro sites 80.9 162.6 244.4 82.0 OLOs macro sites & Others 2 24.4 45.5 66.1 89.4 22

  17. Slide 17: Data book: Balance Sheet

    Data book: Balance Sheet 3M20 6M20 9M20 FY20 3M21 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) Goodwill 6,712 6,113 6,113 6,113 6,113 Tangible assets 783 778 798 812 802 Other intangible fixed assets 13 810 786 762 744 Rights of Use on Third Party Assets 1,168 1,230 1,149 1,140 1,1

  18. Slide 18: Data book: Cash Flow

    Data book: Cash Flow 3M20 6M20 9M20 FY20 3M21 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) EBITDA Recurring 86.3 259.5 432.4 602.4 172.4 Recurring CAPEX (3.2) (3.8) (16.8) (1.8) EBITDA - Recurring CAPEX 86.3 256.3 428.6 585.6 170.7 Change in Net Working Capital (4.7) (15.9) 30.0 54

  19. Slide 19: Data book: Operational KPIs

    Data book: Operational KPIs 3M20 6M20 9M20 FY20 3M21 Number in #k (Jan-Mar) (Jan-Jun) (Jan -Sep) (Jan-Dec) (Jan-Mar) Tenancy Ratio 1.96x 1.81x 1.84x 1.88x 1.92x Number of Tenants 21.9 40.5 41.0 42.0 42.8 Anchor Tenants 10.9 32.0 32.2 32.7 33.6 1 21.10 0.21 0.52 0.9 Anchors New Tenants OLOs 11.1 8.51

  20. Slide 20: More questions? Ask Investor Relations

    More questions? Ask Investor Relations Fabio Ruffini Head of Investor Relations fabio.ruffini@inwit.it ir@inwit.it 20

Infrastrutture Wireless Italiane — Q1 2021 Earnings Presentation on 6ix