Rai Way Spa · MIL:RWAY
Rai Way Spa — 1H 2022 Earnings Presentation
21 slides from Rai Way Spa's earnings presentation, Jul 27, 2022
Slide 1: 1H2022 Results Presentation
1H2022 Results Presentation 27 July 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 1H2022 Results Presentation 3
Slide 4: Key messages on 1H2022
Key messages on 1H2022 ● Top-line up 7% driven by: o CPI-link FINANCIAL RESULTS o Refarming-related step-up in RAI contract o Tangible contribution from new regional MUXes, leading to a double-digit growth of third-party revenues in 2Q ● Adj. EBITDA up 11,9%, with headwinds from electricity prices o
Slide 5: Rai Way post-refarming broadcast network configuration
Rai Way post-refarming broadcast network configuration National DTT networks for Rai Regional networks Population Technical • T2-ready networks, MPEG4/HEVC; average capacity available: Max: ~22 Mbps (DVB-T) N. sites Coverage features – Max: ~40 Mbps (DVB-T2) • DVB-T2 capacity fully allocated T2-read
Slide 6: Edge Data Centers: procurement started for construction of the first set of assets
Edge Data Centers: procurement started for construction of the first set of assets Torino Eremo Milano Siziano • First set of 5 edge DC: o 1,6 MW of distributed capacity o ANSI TIA 942 rating 3/UPTIME Tier III o Ca. 25m capex o Assets availability expected by end of 2023 • Final design activities al
Slide 7: Edge CDN: technology procurement started
Edge CDN: technology procurement started Distributed national architecture • Procurement procedure started to secure equipment, systems and services for the implementation and operation of the Edge CDN • First ready-to-service Edge CDN (scale-up configuration) available by end of 2023 • Further capi
Slide 8: 1H2022 Financial highlights
1H2022 Financial highlights Mln Eur; % % YoY growth Core Revenues Adjusted EBITDA Net Income Adjusted EBITDA margin +11,9% +11,5% +7,0% 37,0 78,2 33,2 113,3 121,2 69,8 64,5% 61,6% 59,4% 1H2021 1H2022 1H2021 1H2022 1H2021 1H2022 Capex Net debt (Net Cash) Cash conversion(2) Net Debt / Adjusted EBITDA
Slide 9: Core Revenues
Core Revenues Mln Eur; % % YoY growth +7,0% 121,2 113,3 16,6 ● RAI Fixed Consideration up 7,7% driven by +5,7% Third-Parties 15,7 refarming-related step-up and CPI 3,0 - New services 3,2 ● Third-party revenues up 5,7% (double-digit growth in 2Q) supported by rising contribution from new regional MUX
Slide 10: Opex (excluding non-recurring)
Opex (excluding non-recurring) Mln Eur; % % YoY growth Headwinds from electricity prices mitigated through cost control and non-recurring benefits -1,4% 44,0 43,4 ● Excluding non-core impacts, underlying personnel cost relatively flat reflecting stable headcount Personnel 23,2 22,3 -3,8% costs ● Exc
Slide 11: P&L
P&L Eur Mln, % 2Q2021 2Q2022 % YoY 1H2021 1H2022 % YoY Core Revenues 56,8 61,1 7,5% 113,3 121,2 7,0% Other Revenues & income 0,4 0,3 0,5 0,3 ● 1H2022 Net Income up by 11,5% Adj. EBITDA 35,6 38,6 8,5% 69,8 78,2 11,9% at € 37,0m as a result of: % margin 62,6% 63,2% 61,6% 64,5% o Higher top-line Non re
Slide 12: Net Debt bridge
Net Debt bridge Mln Eur Net Debt/ 1y rolling Adj. EBITDA IFRS-16 Debt 36,8m Gross Debt 101,5m Cash&Eq(5) -18,2m 120,0 87,9 65,1 Including € 22,3m development capex 0,79x 0,61x (78,2) (5,1) 9,0 0,6 14,6 26,2 Net Debt 2021YE EBITDA Capex(1) Taxes(2) Financial Δ NWC Funds & Dividend Net Debt @ charges(
Slide 13: Electricity prices vs CPI escalator protection
Electricity prices vs CPI escalator protection ILLUSTRATIVE PURPOSE ONLY Simulation on Impact of electricity prices CPI contribution to revenues ~25 ~24 X ~ 13 ~17 ~ 22 ~ +14 11,8 +/- X 5,3 5,4 6,5 ~ +8 2,1 1H 2H 2021A 1QA 2QA 2HE 2022E 2023E CPI Contribution Further contribution in 2023 from contri
Slide 14: Guidance 2022 confirmed
Guidance 2022 confirmed REVENUES ● Mid-single-digit revenue growth driven by investments in refarming, both for RAI and third parties, and CPI ADJUSTED EBITDA ● Adjusted EBITDA expected to grow, although limited by the current level of power futures for the rest of the year o More tangible growth in
Slide 15: Q&A session
Q&A session 1H2022 Results Presentation 15
Slide 16: Contacts
Contacts - Investor Relations +39 06 331 73973 +39 06 331 74815 investor.relations@raiway.it 1H2022 Results Presentation 16
Slide 17: Appendix
Appendix 1H2022 Results Presentation 17
Slide 18: Balance sheet
Balance sheet Mln Eur Including rights of use for leasing under IFRS-16 (€ 32,4 m) (19,5) (23,1) 258,8 120,0 301,4 138,8 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 intro
Slide 19: Detailed summary of Income Statement
Detailed summary of Income Statement (€m; %) 2Q21 2Q22 1H21 1H22 Core revenues 56,8 61,1 113,3 121,2 Other rev enues and income 0,4 0,3 0,5 0,3 Purchase of consumables (0,3) (0,2) (0,7) (0,6) 1 Cost of serv ices (9,3) (10,8) (18,8) (19,2) 1 Personnel costs (11,3) (11,1) (23,2) (22,3) Other costs (0,
Slide 20: Summary of Balance Sheet
Summary of Balance Sheet (€m) 2021FY 1H2022 (€m) 2021FY 1H2022 Shareholders' Equity Non current assets Share capital 70,2 70,2 Tangible assets 244,5 251,5 Legal reserv es 14,0 14,0 Rights of use for leasing 31,5 32,4 I ntangible assets 17,2 15,9 Other reserv es 37,3 37,7 Financial assets, holdings a
Slide 21: Summary of Cash Flow Statement
Summary of Cash Flow Statement (€m) 2Q2021 2Q2022 1H2021 1H2022 Profit before income taxes 23,0 25,4 45,0 51,6 Depreciation, amortization and w rite-dow ns 12,2 12,9 24,2 25,7 Prov isions and (releases of) personnel and other funds 0,9 (1,0) 1,7 (0,6) Net financial (income)/expenses 0,3 0,4 0,6 0,8