Rai Way Spa · MIL:RWAY
Rai Way Spa — Q2 2024 Earnings Presentation
23 slides from Rai Way Spa's earnings presentation, Aug 1, 2024
Slide 1: 1H2024 Results Presentation
1H2024 Results Presentation 1 August 2024
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: Speakers
Speakers Roberto Cecatto, Chief Executive Officer Adalberto Pellegrino, Chief Financial Officer Giancarlo Benucci, Chief Corporate Development Officer /3/
Slide 4: Key messages
Key messages Financial Results – First-half trend in line with expectations: • Total Revenues up 1,2% vs 1H2024, with underlying Third-Party performance at +4% supported by CPI, regional frequencies and hosting services to FWA and radio broadcasters • Adjusted EBITDA up 3,0% with profitability impro
Slide 5: FOCUS ON: New organisational structure
FOCUS ON: New organisational structure From functional… …to divisional organisation CEO CEO Staff 1 Staff 2 … Staff N Staff 1 Staff 2 … Staff N Data Centers Media & Technology Sales & New Services Broadcast Infrastructure Data Centers Field force Sales (Broadcast & Sales (Tower Hosting Sales & Mktg
Slide 6: FOCUS ON: first new edge DCs completed
FOCUS ON: first 5 new edge DCs completed TURIN MILAN • 118 sqm data hall • 230 sqm data hall • 747 sqm data hall • 39 racks • 60 racks • 249 racks • Up to 280 kW IT load • Up to 450 kW IT load • 1.6 MW IT load • Coverage of Northern Italy VENICE • Commercial partnership with • 118 sqm data Oracle si
Slide 7: 1H2024 Financial highlights
1H2024 Financial highlights Core revenues (€m) Adjusted EBITDA (€m) Net Income (€m) Adjusted EBITDA margin +1,2% +3,0% 136,0 137,6 90,8 93,5 +5,2% 66,8% 68,0% 44,9 47,2 1H2023 1H2024 1H2023 1H2024 1H2023 1H2024 Capex1 (€m) Net Debt (Cash) (€m) Cash Conversion2 Net Debt/Adjusted EBITDA 17,9 145,9 15,
Slide 8: Core revenues
Core revenues +1,2% 136,0 137,6 Media Distribution up 1,2% reflecting: Digital Infrastructure 15,6 15,7 +1,1% • CPI-link • new services to RAI (+7,2%), driven by 121,8 improvement of DTT networks coverage Media Distribution +1,2% 120,4 • contractual step-up in regional broadcasting networks contribu
Slide 9: Opex (excluding non recurring)
Opex (excluding non recurring) • Personnel cost broadly flat YoY when excluding higher level of capitalization compared to 1H23 (€ +0.8m) -2,7% 45,5 • Other Operating costs down 2,3%: 44,3 o Energy bill up 6,9% in 1H (+25,1% in 2Q) following lack of incentives reported in 1H23 Personnel 24,1 costs 2
Slide 10: P&L
P&L Eur Mln, % 2Q2023 2Q2024 % YoY 1H2023 1H2024 % YoY 1H24 Net Income up by 5,2% at € Core Revenues 68,1 68,7 0,8% 136,0 137,6 1,2% 47,2m: Other Rev enues & income 1) 0,0 0,1 0,3 0,3 o Higher Adj. EBITDA (+3,0%) and Adj. EBITDA 46,3 46,7 0,8% 90,8 93,5 3,0% profitability (+120bps at 68%) % margin 6
Slide 11: Net Debt bridge
Net Debt bridge IFRS-16 Debt 32,7m Gross Debt 122,6m Cash&Eq(5) -9,4m 146,0 IFRS-16 Debt 37,8m Gross Debt 101,5m Cash&Eq(5) -34,4m 104,9 Related to capex payment terms 86,4 and tax cycle Including € 12,2m of development capex 0,80x (93,4) 4,3 0,58x 7,3 2,5 18,8 15,3 Net Debt 2023YE EBITDA Capex(1) T
Slide 12: Updated outlook for 2024
Updated outlook for 2024 Outlook based on current level of power futures for 20241 • CPI-link (+0,7% for RAI contract) Growth of Adjusted EBITDA vs 2023, despite • Rising contribution from New Services to RAI and broadcasting services to regional broadcasters Adjusted new infra costs and lack of ene
Slide 13: Q&A Session
Q&A Session
Slide 14: Contacts
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 /14/
Slide 15: Appendix
Appendix
Slide 16: Summary of Balance Sheet as at 30 June 2024
Summary of Balance Sheet as at 30 June 2024 (€m) 2023FY 1H2024 (€m) 2023FY 1H2024 Non current assets Shareholders' Equity Tangible assets 297,4 294,4 Share capital 70,2 70,2 Rights of use for leasing 33,0 30,4 Legal reserv es 14,0 14,0 Intangible assets 24,7 23,9 Other reserv es 37,7 37,1 Financial
Slide 17: Detailed summary of 1H2024 Income Statement
Detailed summary of 1H2024 Income Statement (€m; %) 2Q23 2Q24 1H23 1H24 Core revenues 68,1 68,7 136,0 137,6 1 Other rev enues and income 0,6 0,1 1,5 0,3 Purchase of consumables (0,3) (0,3) (0,6) (0,6) Cost of serv ices (9,9) (9,6) (20,8) (19,1) Personnel costs (15,0) (11,8) (27,5) (23,5) Other costs
Slide 18: Balance Sheet as at 30 June 2024
Balance Sheet as at 30 June 2024 (31,1) (22,6) 295,6 Including rights of use for leasing under IFRS- 16 (€ 30 m) 145,9 349,3 149,7 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 lea
Slide 19: Summary of 1H2024 Cash Flow Statement
Summary of 1H2024 Cash Flow Statement (€m) 2Q2023 2Q2024 1H2023 1H2024 Profit before income taxes 30,1 32,5 62,7 65,9 Depreciation, amortization and write-downs 11,6 12,7 22,7 24,6 Prov isions and (releases of) personnel and other funds 0,9 (0,9) 1,8 0,2 Net financial (income)/expenses 1,0 1,4 1,7 2
Slide 20: 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 21: 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 22: Industrial Plan pillars
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 profitability Strength
Slide 23: New Core revenues breakdown
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, …) • Broadcasting (re