Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — Q2 2021 Earnings Presentation
22 slides from Infrastrutture Wireless Italiane's earnings presentation, Jul 29, 2021
Slide 1: Q2 2021 Financial Results
Q2 2021 Q2 2021 Financial Results 29th July 2021
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
Slide 3: Q2 Highlights: organic growth gains momentum
Q2 Highlights: organic growth gains momentum Acceleration in Strong EBITDAaL & Leading cash Revenue Growth improving margin generation +4.5% +6.9% +14.9% Organic Revenue Growth YoY EBITDAaL Growth YoY RFCF Growth YoY PoPs growth and new sites 66% EBITDAaL margin €91m RFCF in Q2 (+2 p.p.) Continued g
Slide 4: Q2 PoPs: new sites adding another organic growth lever
Q2 PoPs: new sites adding another organic growth lever New PoPs - Anchors1 New Sites +8% 34.5k "New" INWIT YoY "New" INWIT +1% 860 900 22.5k YoY 520 130 210 50 20 30 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1'21 Q2'21 EoP Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1'21 Q2'21 EoP Anchor clients: • Roll-out of new sites progra
Slide 5: Asset and cost optimization continues with tangible results
Asset and cost optimization continues with tangible results Tenancy ratio Lease cost per site1 EBITDAaL per site1 (€k) (€k) 21.3 22.2 22.6 9.4 8.8 8.7 1.81 1.92 1.95 Q2'20 Q1'21 Q2'21 Q2'20 Q1'21 Q2'21 Q2'20 Q1'21 Q2'21 EBITDAaL margin 64% 65% 66% Best in class tenancy ratio Strong track record Mate
Slide 6: DAS supported by entry into dedicated motorway coverage
DAS supported by entry into dedicated motorway coverage New Small cells / DAS New investment: focus on highway infrastructure (# Remote Units) • Accelerated DAS deployment on key road infrastructure and prime +41% locations, via agreement with Vodafone Italy 5.2k YoY • Assets involved: ca.700 highwa
Slide 7: Next Generation EU funds: a tailwind to INWIT growth
Next Generation EU funds: a tailwind to INWIT growth Italy Next Generation EU Missions and Projects: >€230bn1 Main opportunities for INWIT Expanding coverage of digital infrastructure: Digital Inclusion Mobility Education Green Health MACRO-SITES • "Piano Italia 5G" - €2bn for coverage in market fai
Slide 8: Q2 P&L: improved pace of growth, further acceleration expected
Q2 P&L: improved pace of growth, further acceleration expected (€m) Q2 2020 Q1 2021 Q2 2021 YoY Organic revenue growth progression (yoy) Total Revenues 184.4 190.2 192.9 4.6% 4.5% One-off Revenues 0.0 0.6 0.1 3.2% 3.4% 1.9% Recurring Revenues 184.4 189.7 192.7 4.5% 1.0% Anchors MSA macro sites 161.3
Slide 9: Tax schemes approved: update on financial impacts
Tax schemes approved: update on financial impacts Recap of two tax schemes approved – mechanics and benefits in line with expectations Scheme details Upfront payment Cash benefits NPV IRR • Presented in November 2020 • 16% of goodwill • €568m lower taxes paid €150m • 22% 1 • Based on Law DL 185/2008
Slide 10: Q2 Cash flow: strong cash generation continues
Q2 Cash flow: strong cash generation continues Q2 2021 cash flow build up (€m) 175.7 Q2 2021 cash generation highlights • Cash conversion at 52% of EBITDA -6.2 28.3 +15% yoy • RFCF +15% year-on-year • Positive NWC trend as expected -51.9 91.3 • Growth capex driven by new macro sites, -52.5 -2.1 0.5
Slide 11: Peak leverage due to tax schemes – deleveraging path confirmed
Peak leverage due to tax schemes – deleveraging path confirmed Net Financial Position and Leverage Ratio1 (€bn) 4500 4.0 4.1 8 3.8 3.7 3.6 7,5 Peak leverage reached in Q2’21, driven by: 4000 3500 1.0 7 • €284m dividend payment 1.1 6,5 3000 1.0 1.1 1.0 5.8x 5.9x 6 • €334m one-off tax schemes prepayme
Slide 12: ESG: tangible progress in sustainability plan
ESG: tangible progress in sustainability plan November GOVERNANCE PEOPLE ENVIRONMENT INNOVATION COMMUNITY 2020 Plan - Main targets • MBO and LTI targets • 50% of women candidates • Carbon neutral by 2025 • Small Cells and DAS • Coverage of rural areas 2021 - 2023 • CDP questionnaire • Training: all
Slide 13: Structural growth confirmed – 2021 guidance reiterated
Structural growth confirmed – 2021 guidance reiterated • Two Tier-1 anchors + neutral • Improving investment cycle - • Strong demand, 5G, FWA, host role Next Generation EU funds Key Further DAS • High tenancy ratio growth Support • Ongoing digitalization trend strengths • Further ground lease • Lean
Slide 14: Solid set of achievements in 1H 2021
KEY FACTS Solid set of achievements in 1H 2021 1. Operations: new PoPs, new sites, land renegotiation/buyout +2.4k H1 New PoPs +4.5% 2. Financials: acceleration in organic growth, margin expansion 3. Commercial: new DAS agreement on dedicated highway coverage Q2 Revenue organic Growth +7% Q2 EBITDAa
Slide 15: Thank You
Thank You 15
Slide 16: Appendix
Appendix 16
Slide 17: Data book: Quarterly P&L
Data book: Quarterly P&L Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Currency: €m (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) Revenues 103.0 184.4 186.1 189.9 190.2 192.9 TIM - MSA macro sites 1 66.3 80.4 81.7 81.7 82.1 83.6 VOD - MSA macro sites 1 80.9 81.7 81.8 82.0 82.9 2 OLOs macro sites
Slide 18: Data book: Cumulated P&L
Data book: Cumulated P&L 3M20 6M20 9M20 FY20 3M21 6M21 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) Revenues 103.0 287.4 473.5 663.4 190.2 383.1 1 TIM - MSA macro sites 66.3 146.7 228.4 310.0 82.1 165.7 VOD - MSA macro sites 1 80.9 162.6 244.4 82.0 164.9 OLOs macro sites
Slide 19: Data book: Balance Sheet
Data book: Balance Sheet 3M20 6M20 9M20 FY20 3M21 6M21 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) Goodwill 6,712 6,113 6,113 6,113 6,113 6,113 Tangible assets 783 778 798 812 802 815 Other intangible fixed assets 13 810 786 762 744 722 Rights of Use on Third Party Asset
Slide 20: Data book: Cash Flow
Data book: Cash Flow Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Currency: €m (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) EBITDA Recurring 86.3 173.3 172.8 170.0 172.4 175.7 Recurring CAPEX (3.2) (0.6) (13.0) (1.8) (6.2) EBITDA - Recurring CAPEX 86.3 170.1 172.3 157.0 170.7 169.5 Change in N
Slide 21: Data book: Operational KPIs
Data book: Operational KPIs 3M20 6M20 9M20 FY20 3M21 6M20 Number in #k (Jan-Mar) (jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) Tenancy Ratio 1.96x 1.81x 1.84x 1.88x 1.91x 1.95x Number of Tenants 21.9 40.5 41.0 42.0 42.8 44.0 Anchor Tenants 10.9 32.0 32.2 32.7 33.6 34.5 Anchors New Tenants 21.1 0
Slide 22: More questions? Ask Investor Relations
More questions? Ask Investor Relations Fabio Ruffini Head of Investor Relations fabio.ruffini@inwit.it ir@inwit.it 22
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