Rai Way Spa · MIL:RWAY
Rai Way Spa — FY2016 Earnings Presentation
23 slides from Rai Way Spa's earnings presentation, Mar 9, 2017
Slide 1: 2016FY Results Presentation
2016FY Results Presentation Rome, 9th March 2017 9 March 2017 1 2016FY Results
Slide 2: Forward Looking Statements
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 and assumpti
Slide 3: Rai Way Participants
Rai Way Participants • Stefano Ciccotti, Chief Executive Officer • Adalberto Pellegrino, Chief Financial Officer • Giancarlo Benucci, Head of Corporate Development & IR 9 March 2017 3 2016FY Results
Slide 4: 2016 in a nutshell
2016 in a nutshell Broaden offer to RAI Increase # of managed MUX • New contracts signed, mainly related to • Beauty contest: Rai Way’s regional HD development, MUX Francofono and partners awarded with new frequencies cyclical events • Agreement with Norba Group • Ongoing negotiations for additional
Slide 5: New services to RAI: matching client's needs
New services to RAI: matching client’s needs MEDIA COMPANY Client needs Universality Quality Multiplatform • Coverage improvement on MUX1 • Extend HD offer (consistently with - available bandwidth) • MUX 2/3/4 extension of coverage Rai Way • International distribution • «All HD channels» offer withi
Slide 6: Update on main new initiatives for RAI
Update on main new initiatives for RAI • Contribution network upgrade Target unlevered IRR of As of 29 Sept • RAI Sport HD at least 10% confirmed 2015* • Transmission services for Expo • International distribution for RAI Com • Acquisition of 4th transponder • Simulcrypt on satellite broadcasting pl
Slide 7: Agreement with Norba Group: mix of commercial and M&A activity
Agreement with Norba Group: mix of commercial and M&A activity - Long-term agreement for the operation and maintenance of the TV and radio broadcasting network of the Norba Group signed in March 2017 - Norba Group, leader in the multi-media communication sector in the South of Italy, is the largest
Slide 8: Efficiencies
Efficiencies • Redesign of organizational model • Energy supply contract renewed in 2015 Personnel • Voluntary layoff program launched Utilities • Stable consumption despite • Optimization of travel expenses and introduction of new services other non-core items 638 15,0 622 12,5 609 Eur mln; Headcou
Slide 9: 2016FY Financial Highlights
2016FY Financial Highlights % YoY growth Mln Eur; % Core Revenues Adjusted EBITDA Net Income Adjusted EBITDA margin 215,2 +1,4% 212,3 34,7 Third 34,8 111,3 +1,8% parties 109,3 41,8 +7,4% 177,5 180,5 51,7% 38,9 51,5% 2015FY(1) 2016FY 2015FY(2) 2016FY 2015FY 2016FY Capex Net debt Cash conversion(3) Ma
Slide 10: Revenues from RAI
Revenues from RAI Eur Mln; % FY Revenues from RAI 180,5 +1,7% • No benefit from CPI 177,5 4,2 • Revenues from RAI up 1,7% driven by new initiatives: New services(2) 1,3 Recurring services 1,1 1,3 Main contributors to revenues from New services & other items(2) include: - Upgrade of contribution ne
Slide 11: Revenues from Third parties
Revenues from Third parties Eur Mln; % FY Revenues from 3rd Parties 34,8 34,7 -0,3% Broadcasting 2,9% Transmission Tower Hosting 94,6% € 34,7m 1,8% Network Services 0,7% - MNOs 74% - Other customers 26% 2015FY(1) 2016FY • Increasing volumes with FWAPs and broadcasters offsetting sites optimization o
Slide 12: Opex
Opex Eur Mln; % FY Opex (excluding one-offs) 104,4 +1,0% • Excluding the impact of lower capitalization and different 103,3 allocation of travel costs(2), personnel costs declined 0,7% vs. 2015 driven by voluntary layoff program and Personnel 46,6 +1,1% optimization of non core items 46,1 costs(2) •
Slide 13: Adjusted EBITDA evolution
Adjusted EBITDA evolution Adjusted EBITDA margin Eur Mln; % Δ Personnel excl. capitalization: flat Δ Other Operating excl. PYA: +0,5 +0,1 (0,0) +0,1 (0,2) 51,7% (0,5) +1,0 (1,0) (0,9) 111,3 +0,6 +2,9 51,5% 109,3 +0,4 excluding increase in travel costs In 2015, overperformance vs. guidance driven by
Slide 14: P&L
P&L P&L Eur Mln, % 4Q 2015 4Q 2016 % YoY FY 2015 FY 2016 % YoY Core Revenues 54,1 53,9 -0,3% 212,3 215,2 1,4% • One-off expenses of € 6,8m in 2016, mainly Other Rev enues (1) 0,1 0,3 0,3 0,4 related to voluntary layoff incentive Opex (excl. one-offs)(1) -27,1 -29,4 8,5% -103,3 -104,4 1,0% - Incentiv
Slide 15: Cash Flow generation
Cash Flow generation Net Debt/Adj. EBITDA Eur Mln; % 0,38x 41,6 Main drivers: - Reduction of trade receivables Investments include - Accrual of layoff incentive development capex 0,08x (104,5) of ca. € 3,3m 9,4 3,0 Net Debt EBITDA Capex Taxes(1) Financial ΔNet Funds & Net Debt 2015YE charges(2) Work
Slide 16: Balance Sheet
Balance Sheet Eur Mln 2016YE Balance Sheet (4,4) (32,5) 171,0 9,4 207,9 161,5 Net Fixed Net Net Net Net Debt Equity Book Assets (1) Working Funds(2) Invested Value Capital Capital (1) Including long-term financial items 9 March 2017 16 (2) Net funds include employee termination indemnities, provisio
Slide 17: 2017 Outlook
2017 Outlook • ADJUSTED EBITDA 2017 Adjusted EBITDA to continue in the growth trajectory of recent years • CAPEX 2017 Maintenance capex to remain in line with long-term target 9 March 2017 17 2016FY Results
Slide 18: Q&A session
Q&A session —__§—— FUTTTVLUT TTT D TT TTT
Slide 19: Contacts
Contacts - Investor Relations Upcoming events Date Event +39 06 331 73973 28/04/2017 Shareholders’ Meeting investor.relations@raiway.it 11/05/2017 1Q17 results 27/07/2017 1H17 results 09/11/2017 3Q17 results 9 March 2017 19 2016FY Results
Slide 20: Appendix
Appendix ___§—, TUDTETUT TELE TT TTTT TTT TTT TEE
Slide 21: Detailed summary of Income Statement
Detailed summary of Income Statement (€m; %) 4Q15 4Q16 FY15 FY16 Core revenues 54.1 53.9 212.3 215.2 ( 1) Other rev enues 0.1 0.3 0.3 0.4 Purchase of consumables (0.6) (0.5) (1.5) (1.3) Serv ice costs ( 1) (13.2) (15.2) (52.1) (52.9) Personnel costs (13.8) (16.0) (47.6) (53.2) Other costs (1.0) (1.0
Slide 22: Summary of Balance Sheet
Summary of Balance Sheet 2015FY 2016FY 2015FY 2016FY (€m) (€m) Non current assets Equity Tangible assets 224,5 205,2 Share capital 70,2 70,2 Intangible assets 1,8 2,2 Legal reserv es 8,1 10,1 Non-current financial assets 0,5 0,5 Other reserv es 37,1 37,0 Non-current tax assets 4,5 5,0 Retained earni
Slide 23: Summary of Cash Flow Statement
Summary of Cash Flow Statement (€m) 4Q2015 4Q2016 FY2015 FY2016 Earnings before taxes 13.2 14.3 58.9 63.5 Depreciation and amortization 10.3 6.2 45.4 38.3 Provisions and others 5.2 1.5 3.9 3.4 Net financial Income 0.3 0.4 1.9 1.9 Other non-monetary items 0.0 0.0 0.0 0.0 Net operating CF before chang