Slide 1: 9M2018 Results Presentation
9M2018 Results Presentation 13 November 2018
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, Head of Corporate Development & IR 13 November 2018 3 9M2018 Results Presentation
Slide 4: Key messages
Key messages ➢ Solid performance driven by: o Top-line supported by CPI and New Services for Rai o Adjusted EBITDA solidly growing with profitability above 55% o Further improvement in Net Income ➢ Refarming process ongoing o Roadmap released by MiSE and tender for 5G frequencies concluded o “TV 4.0
Slide 5: 9M2018 Financial Highlights
9M2018 Financial Highlights % YoY growth Mln Eur; % Core Revenues Adjusted EBITDA Net Income Adjusted EBITDA margin 163,3 +0,7% +1,8% 47,2 +7,2% 90,6 162,1 89,0 44,0 55,5% 54,9% 9M2017 9M2018 9M2017 9M2018 9M2017 9M2018 Capex Net Debt Cash conversion(2) Net Debt / 1-y rolling Adjusted EBITDA 14,5 94
Slide 6: Core Revenues
Core Revenues % YoY growth Mln Eur; % +0,7% 163,3 162,1 • Revenues from RAI up 2,0% supported by CPI and new 24,8 -5,6% services: Third-Parties 26,3 ✓ First contribution from activities related to 5,1 spectrum refarming - New services 3,3 • Revenues from Third-Party customers down 5,6% (-4,6% +2,0%
Slide 7: Opex (excluding one-offs)
Opex (excluding one-offs) % YoY growth Mln Eur; % 73,9 72,7 -1,6% • Personnel costs down 2,1% vs. 9M2017 driven by reduction Personnel 33,6 costs 32,9 -2,1% of average headcount and variable components of wages - 3Q18 performance impacted by stabilization of headcount and different accruals of certa
Slide 8: P&L
P&L Eur Mln, % 3Q 2017 3Q 2018 % YoY 9M 2017 9M 2018 % YoY Core Revenues 54,1 54,3 0,4% 162,1 163,3 0,7% • 9M18 Net Income up 7,2% at € 47,2m driven by: Other Rev enues & income 0,7 0,0 0,8 0,1 - Higher Adj. EBITDA, with further improvement in profitability (up vs. 9M17 at 55,5%) despite Adj. EBITDA
Slide 9: Cash flow generation
Cash flow generation Net Debt/ 1y rolling Adj. EBITDA Mln Eur 0,10x 0,04x Dividend payment 11,9 4,8 EBITDA 2,7 Net Debt Capex Taxes(1) Financial Δ NWC Funds & Net Debt 2017YE charges(2) Other 9M2018 55,1 (90,2) 8,7 0,9 17,6 12,3 • Higher maintenance capex vs 2017 in line with FY guidance • 3Q18 NWC
Slide 10: Balance sheet
Balance sheet Mln Eur 19,9 (28,6) 179,9 11,9 188,7 168,1 Net Fixed Net Net Funds Net Net Debt Equity Book (2) Assets (1) Working Invested Value Capital Capital (1) Including long-term financial items 13 November 2018 10 (2) Net funds include employee termination indemnities , provision for risks and
Slide 11: 2018FY Outlook confirmed
2018FY Outlook confirmed • ADJUSTED EBITDA ➢ 2018 Adjusted EBITDA to keep growing organically • CAPEX ➢ 2018 maintenance capex expected in the range of 9% of core revenues; going forward, the average level of 8,5% of core revenues is confirmed 13 November 2018 11 9M2018 Results Presentation
Slide 12: Q&A Session
Q&A Session vcr
Slide 13: Contacts
Contacts - Investor Relations +39 06 331 73973 +39 06 331 75971 investor.relations@raiway.it 13 November 2018 13 9M2018 Results Presentation
Slide 14: Appendix
Appendix —
Slide 15: Detailed summary of Income Statement
Detailed summary of Income Statement (€m; %) 3Q17 3Q18 9M17 9M18 Core revenues 54,1 54,3 162,1 163,3 Other rev enues and income 0,7 0,0 0,8 0,1 Purchase of consumables (0,2) 0,1 (0,8) (0,6) Serv ice costs (12,2) (12,5) (37,1) (37,3) Personnel costs (9,3) (9,9) (33,8) (32,9) Other costs (0,8) (0,7) (
Slide 16: Summary of Balance Sheet
Summary of Balance Sheet (€m) 2017FY 9M2018 2017FY 9M2018 (€m) Non current assets Equity Tangible assets 188,7 176,6 Share capital 70,2 70,2 Intangible assets 11,2 11,1 Legal reserv es 12,2 14,0 Financial assets, holdings and other non-current assets 0,4 1,3 Other reserv es 37,0 37,1 Non-current tax
Slide 17: Summary of Cash Flow Statement
Summary of Cash Flow Statement (€m) 3Q2017 3Q2018 9M2017 9M2018 Earnings before taxes 23,5 22,7 62,3 64,8 Depreciation and amortization 8,5 8,2 24,9 24,4 Prov isions and others 0,4 1,0 1,0 2,6 Net financial Income 0,4 0,3 1,1 0,9 Other non-monetary items 0,0 0,0 0,0 (0,8) Net operating CF before cha