Rai Way Spa · MIL:RWAY
Rai Way Spa — 9M 2020 Earnings Presentation
18 slides from Rai Way Spa's earnings presentation, Nov 12, 2020
Slide 1: 9M2020 Results Presentation
9M2020 Results Presentation Rome, 12 November 2020
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 9M2020 Results Presentation 3
Slide 4: Key messages
Key messages ● Third quarter confirmed resiliency of the business, with pace of development activities improving compared to 1H ● 9M2020 Adjusted EBITDA growing at +3,9% (profitability at 62,2% or +150 bps); investments for refarming ramping up ● Update on refarming process o National: criteria regu
Slide 5: 9M2020 Financial Highlights
9M2020 Financial Highlights Mln Eur; % % YoY growth Core Revenues Adjusted EBITDA Net Income Adjusted EBITDA margin +1,4% 165,7 168,0 +3,9% +2,3% 100,6 104,5 49,7 50,8 60,7% 62,2% 59,4% 9M2019 9M2020 9M2019 9M2020 9M2019 9M2020 Capex (1) Net debt (Net Cash) Cash conversion(2) Net Debt / 1-y rolling
Slide 6: Core Revenues
Core Revenues Mln Eur; % % YoY growth +1,4% 165,7 168,0 ● 3Q20 performance positively impacted by one-off items Third-Parties 25,2 -0,1% 25,2 o Recurring third-party revenues down -3% in 9M, in line with anticipated trend - New services 5,2 7,5 ● Negligible benefit from CPI on fixed contract ● Contr
Slide 7: Opex (excluding non-recurring)
Opex (excluding non-recurring) Mln Eur; % % YoY growth -2,6% Underlying 3Q20 opex still favorably impacted by COVID-related 65,2 measures but trending back to 2019 level compared to 2Q 63,5 Personnel 32,7 ● Excluding non-core items and capitalization, personnel cost down costs 32,7 0,0% -0,9% vs 9M1
Slide 8: P&L
P&L ● 9M2020 Net Income up by 2,3% at € 50,8m as a result of: o Higher top-line o Improved profitability with margin above 62% o € 1,1m one-off costs in 9M2020, mainly related to voluntary layoff incentive o Higher D&A following rising investment activity and 9M2019 figure positively impacted by € 1
Slide 9: Cash flow generation
Cash flow generation Mln Eur; % Net Debt/ 1y rolling Adj. EBITDA 41,3 0,31x 9,5 63,3 0,07x Including € 28,0m IFRS-16 Debt 36,5m development capex, mainly Gross Debt 21,1m related to refarming Cash&Eq -16,3m activities 7,7 4,2 6,0 (103,5) 0,6 19,2 Change in NWC mainly related to the net impact of: -
Slide 10: Balance sheet
Balance sheet Mln Eur; % Including rights of use for leasing under IFRS-16 (€ 32,3m) (2,0) (26,8) 205,3 41,3 234,2 164,1 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 intr
Slide 11: New financing
New financing ● Amount: € 170m, of which € 120m Term loan (with bullet repayment at maturity) + € 50m Revolving ● Term Loan to be drawn as needed upon borrower’s request ● Tenor: 3 years ● Interest: Euribor (0 floor) + 0,75% ● Commitment fee: 35% of spread on Term Loan; 30% of spread on Revolving ●
Slide 12: Guidance 2020 confirmed
Guidance 2020 confirmed ● Based on current visibility on the evolution of Covid-19 emergency and on the back of the good resiliency shown so far, Company’s expectations for the FY2020 are confirmed ADJUSTED EBITDA ● Further organic growth of Adjusted EBITDA CAPEX ● Maintenance capex as a percentage
Slide 13: Q&A session
Qé&A session
Slide 14: Contacts
Contacts - Investor Relations +39 06 331 73973 +39 06 331 74815 investor.relations@raiway.it 9M2020 Results Presentation 14
Slide 15: Appendix
Appendix
Slide 16: Detailed summary of Income Statement
Detailed summary of Income Statement (€m; %) 3Q19 3Q20 9M19 9M20 Core revenues 55,3 56,9 165,7 168,0 Other revenues and income 0,0 0,0 0,1 0,0 Purchase of consumables (0,2) (0,3) (0,8) (0,5) Cost of services (10,0) (10,2) (30,1) (28,5) Personnel costs (9,6) (9,3) (32,7) (33,7) Other costs (0,6) (0,6
Slide 17: Summary of Balance Sheet
Summary of Balance Sheet (€m) 2019FY 9M2020 (€m) 2019FY 9M2020 Non current assets Shareholders' Equity Tangible assets 177,6 185,6 Share capital 70,2 70,2 Rights of use for leasing 36,2 32,3 Legal reserves 14,0 14,0 Intangible assets 14,3 15,0 Other reserves 37,1 37,1 Financial assets, holdings and
Slide 18: Summary of Cash Flow Statement
Summary of Cash Flow Statement (€m) 3Q2019 3Q2020 9M2019 9M2020 Profit before income taxes 23,8 25,0 69,4 70,0 Depreciation, amortization and write-downs 10,7 11,2 31,6 32,7 Provisions and (releases of) personnel and other funds 0,9 2,3 0,8 3,0 Net financial (income)/expenses 0,3 0,2 0,9 0,5 (Retain