Rai Way Spa · MIL:RWAY
Rai Way Spa — Q1 2024 Earnings Presentation
21 slides from Rai Way Spa's earnings presentation, May 10, 2024
Slide 1: 1Q2024 Results Presentation
1Q2024 Results Presentation 10 May 2024 0
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 speakers
Rai Way speakers Roberto Cecatto, Chief Executive Officer Adalberto Pellegrino, Chief Financial Officer Giancarlo Benucci, Chief Corporate Development Officer 2
Slide 4: Key messages
Key messages ● First quarter fully in line with expectations: – Revenues up 1,5% mainly driven by CPI-link, regional frequencies and hosting services to FWA and radio broadcasters – Adjusted EBITDA up € 2,4m or 5,3%, benefiting from a higher level of capitalized personnel and a positive reduction ac
Slide 5: 1Q2024 Financial highlights
1Q2024 Financial highlights Mln Eur; % % YoY growth Core Revenues Adjusted EBITDA Net Income Adjusted EBITDA margin +1,4% +1,5% +5,3% 23,5 23,8 68,9 44,4 46,8 67,8 65,5% 68,0% 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 Capex (1) Net debt (Net Cash) Cash conversion(2) Net Debt / Adjusted EBITDA 97,2%
Slide 6: Core Revenues
Core Revenues +1,5% 67,8 68,9 7,6 7,9 +4,1% Digital Infrastructure ● Revenues growing slightly above CPI Media Distribution 60,9 supported by: +1,2% 60,2 – Full impact of Regional refarming in the 1Q2023 1Q2024 Media Distribution segment +1,5% 67,8 68,9 – Healthy performance of FWAPs and Third-Parti
Slide 7: OpEx (excluding non-recurring)
● Excluding non-core items and higher level of OpEx (excluding non-recurring) capitalization compared to 1Q23 (+ € 1.1m), underlying Personnel cost up 2,3% -6,2% 23,7 22,2 ● Underlying Other Operating costs down by more than 7%: Personnel -6,6% costs 12,5 o energy bill down 8% vs. 1Q23 thanks to 11,
Slide 8: P&L
P&L Eur Mln, % 1Q2023 1Q2024 % YoY 1Q24 Net Income up by 1,4% at € 23,8m: Core Revenues 67,8 68,9 1,5% Other Revenues & income 1) 0,3 0,1 Adj. EBITDA 44,4 46,8 5,3% o Higher EBITDA (+5,3%) and profitability % margin 65,5% 68,0% (+250bps at 68%) Non recurring costs 0,0 -0,1 EBITDA % margin 44,4 65,5%
Slide 9: Net Debt bridge
Net Debt bridge Mln Eur Net Debt/ 1y rolling Adj. EBITDA 104,9 90,6 2,0 IFRS-16 Debt 37,8m (46,7) 14,3 IFRS-16 Debt 35,9m Gross Debt 101,5m Gross Debt 102,9m Cash&Eq(5) -34,4m Cash&Eq(5) -48,2m 9,6 1,2 5,3 0,58x 0,50x Including € 4,4 m of development capex Net Debt 2023YE EBITDA Capex(1) Taxes(2) Fi
Slide 10: Outlook for 2024 confirmed
Outlook for 2024 confirmed ● Outlook based on current level of power futures for 2024(1) - CPI-link (+0,7% for RAI contract) Growth of Adjusted EBITDA vs 2023, - Rising contribution from DAB extension and regional refarming Adjusted although limited by new infra costs - Higher expected energy tariff
Slide 11: Q&A session
Q&A session 10
Slide 12: Investor Relations contacts
Investor Relations contacts Andrea Moretti Head of Investor Relations +39 335 530 1205 +39 06 331 70391 andreadanilo.moretti@raiway.it investor.relations@raiway.it www.raiway.it / Investors 11
Slide 13: Appendix
Appendix 12
Slide 14: Detailed summary of 1Q2024 Income Statement
Detailed summary of 1Q2024 Income Statement (€m; %) 1Q23 1Q24 Core revenues 67,8 68,9 1 Other rev enues and income 0,9 0,1 Purchase of consumables (0,3) (0,3) Cost of serv ices (10,9) (9,6) Personnel costs (12,5) (11,8) Other costs (0,6) (0,6) Opex (24,3) (22,3) Depreciation, amortization and w rite
Slide 15: Summary of Balance Sheet as at 31 March 2024
Summary of Balance Sheet as at 31 March 2024 (€m) 2023FY 1Q2024 (€m) 2023FY 1Q2024 Shareholders' Equity Non current assets Share capital 70,2 70,2 Tangible assets 297,4 294,4 Legal reserves 14,0 14,0 Rights of use for leasing 33,0 31,9 Other reserves 37,7 37,7 Intangible assets 24,7 23,6 Retained ea
Slide 16: Balance Sheet as at 31 March 2024
Balance Sheet as at 31 March 2024 Mln Eur Including rights of use for leasing under IFRS-16 (€ 32 m) (24,0) (23,4) 303,1 90,6 350,5 212,5 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
Slide 17: Summary of 1Q2024 Cash Flow Statement
Summary of 1Q2024 Cash Flow Statement (€m) 1Q2023 1Q2024 Profit before income taxes 32,7 33,5 Depreciation, amortization and write-downs 11,1 11,9 Provisions and (releases of) personnel and other funds 0,9 1,0 Net financial (income)/expenses 0,7 1,3 Other non-cash items 0,1 - Net operating CF before
Slide 18: 2024-27 Industrial Plan Pillars
Enhance Rai Way positioning as media 2024-27 Industrial Plan Pillars distribution services and digital infra provider Media Digital 1) Strengthening traditional businesses/assets, by: Other assets Distribution Infrastructure 1.a) Taking advantage of selected growth • Network provider • Tower hosting
Slide 19: 2024–2027 Capital allocation
2024–2027 Capital allocation 2027 Target • Revenues growth doubling CPI contribution Traditional ~€ 98 Mln 6,5% • Adj. EBITDA +€24m vs ‘23 (+13%, CAGR +3,2%), with ca. Businesses / Development recurring maintenance assets Capex capex on sales level 150bps margin improvement • Rec. FCFE generation a
Slide 20: Industrial Plan pillars: closing remarks
4. Closing remarks New Industrial Plan addresses key levers to unlock Rai Way’s full pontential, while preserving its distinctive features… Pillars of Rai Way’s equity story 2024-27 Industrial Plan: addressed value levers Revenue Protection Best-in-class Cash generation predictability from macro pro
Slide 21: New Core revenues breakdown
3. Financial targets Traditional ABC business/assets New Core revenues breakdown ABC Diversification areas Media Distribution Digital Infrastructure Other • RAI Service contract (fixed • Tower Hosting • Land valorization (solar energy consideration & new services) • Connectivity production, leases,