Intred Spa · MIL:ITD
Intred Spa — Investor Presentation (February 2019)
33 slides from Intred Spa's investor presentation, February 2019
Slide 1: Company Presentation February 2019
Company Presentation February 2019
Slide 2: Disclaimer
THIS DOCUMENT HAS BEEN PREPARED BY INTRED S.P.A. (THE “COMPANY”) FOR THE SOLE PURPOSE DESCRIBED HEREIN. IN NO CASE MAY IT BE INTERPRETED AS AN OFFER OR INVITATION TO SELL OR PURCHASE ANY SECURITY ISSUED BY THE COMPANY OR ITS SUBSIDIARIES. THE CONTENT OF THIS DOCUMENT HAS A MERELY INFORMATIVE AND PRO
Slide 3: Company Overview
Let’s start with what is necessary… Company Overview 3
Slide 4: INTRED, The Fiber Company
INTRED, The Fiber Company INTRED is a telecommunication player and provider of fiber network infrastructure which offers data and voice services. The 1,950 km of optical fiber and company, through a proprietary network, operates with a strong 130 plants around Brescia presence in Brescia and other n
Slide 5: A History of Profitable Growth
A History of Profitable Growth DANIELE PELI EIR BRAND WAS FOUNDED LEADS THE COMPANY 2012 1997 INTRED SRL WAS FOUNDED THE CONQUEST OF BRESCIA LISTING ON AIM STOCK 1996 EXCHANGE 1998 2018 € 17.2M CAGR Revenues 10x ‘15-’18 in 10 +23.5% years Revenues +89% 1996 1997 1998 1999 2000 2001 2002 2003 2004 20
Slide 6: Financial Highlights: Strong Growth in 1H 2018
Financial Highlights: Strong Growth in 1H 2018 Revenues(€M) EBITDA(€M) CAGR '15 -'18: 6.0 CAGR '15 -'17: 38.5% 45 . 0% +20% 23.5% 45.8% 40% 40 . 0% 33.9% 5.0 +25% 35 . 0% 17.2 4.0 30 . 0% 14.4 5.7 25 . 0% 11.5 3.0 26.2% 20 . 0% 4.0 9.1 2.0 3.3 15 . 0% 2.5 10 . 0% 1.0 5.0% - 0.0% 2015 2016 2017 2018
Slide 7: Stock & Governance
Stock & Governance Board of Directors Top Management Daniele Peli Chairman Marisa Prati Alessandro Triboldi Director Indipendent Director Renzo Torchiani Adalberto Salvi Daniele Peli Filippo Leone Director Director Chairman & CEO CFO Stock Performance Shareholder Structure Shareholder Structure Mark
Slide 8: Market Outlook
…then what is possible... Market Outlook 8
Slide 9: A Recovering Trend in the Domestic Market
A Recovering Trend in the Domestic Market The TLC Market estimated to be worth 32.2 billions Total Revenues ● The TLC market accounts for 60% of the communication industry, totalling €32.2B of revenues. Postal Services 14% ● After a 5-year negative trend, the TLC industry reported an Fixed-line TLC
Slide 10: The Shift in the Fixed-line towards Fiber Networks
The Shift in the Fixed-line towards Fiber Networks Reducing trend of Copper Access The Rise of NGA Increasing Speed Request CAGR copper: -8.4% CAGR fiber networks: +63.7% CAGR speed >30mps: +121.3% • Broadband access has reached 16.7M units, with an • The trend of reducing access through the copper
Slide 11: Italian Market vs INTRED
Italian Market vs INTRED The Italian Market INTRED in 1H 2018 Telecommunication Fixed € 180M Market Share: 8% market in Brescia 19.5K units Broadband Access 16.4M units 0.12% of the Italian Market < 10 Mbit/s: 35.6% < 10 Mbit/s: 40.4% Data connection speed >10 and < 30 Mbit/s: 41.1% >10 and < 30 Mbi
Slide 12: Market Position
Market Position 70% Sales Growth Revenues 2017 60% 50% 40% 30% 20% 10% 0% EBITDA -10.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% margin -10% 12 -20% Source: Management analysis on companies 2017 financial reports
Slide 13: Business Model & Strategy
…and suddenly you will be surprised to do the impossible Business Model & Strategy 13
Slide 14: Investment Case
Investment Case Proven track record and experienced management team A profitable business model based on long term client relationship Broad range of services addressed to a wide range of clients Strong local presence in a thriving area At the forefront of innovation: The Network 14
Slide 15: Proven track record and experienced management team
Proven track record and experienced management team MARCO EFREM CARELLINI EGON ZANAGNOLO – MANUEL METELLI- DANIELE PELI – CEO ROBERTA POLI- HR & GIULIA PELI – FILIPPO LEONE - CFO – TECHNICAL DIRECTOR BUSINESS MANAGER CHIEF BUYER Born in Lodrino (BS), on CRM MARKETING MANAGER Born in Turin on October
Slide 16: A Profitable Business Model Based on Long Term Client Relationship
A Profitable Business Model Based on Long Term Client Relationship Analysis of feasibility Sales&Marketing Make or use analysis to cover new areas: Through a well structured sales process • Evaluation to use third party networks the company can acquire new • Internal planning through dedicated custo
Slide 17: INTRED's Growing Model
INTRED’s Growing Model INTRED investments are based on a Growing Model that allows a greater profitability and the direct control of the quality and the services offered, sustaining large investments. The extension of the existing network makes it possible to increase the number of users sustain
Slide 18: Broad range of services addressed to a wide range of clients
Broad range of services addressed to a wide range of clients More than 95% of INTRED’s revenues are based on recurring Σ Recurring fees Ʃ Canoni fees and traffic €€/Milioni mln Ricorrenti Upselling new services to existing clients to push revenues Revenues T2 t2 Fatturato Risc.Pass. NEW t1 Hig
Slide 19: Strong local presence in a thriving area
Strong local presence in a thriving area Lombardia: The Virtuos Region The Company holds a strong presence in one of the regions with the best financial profile and the highest stable economic potential in Italy. Companies in Italy as March 2018: 5.1M Bergamo, Brescia and TOP 5 Mantova are the Piemo
Slide 20: At the Forefront of Innovation: The Network
At the Forefront of Innovation: The Network 2018 INTRED has a network structured for 80000 costumers with 1,950km 1700km of optical fiber and 130 active plants among Brescia, Bergamo, Mantova. ● Coverage of Brescia, Bergamo, Mantova 2016 ● Network MPLS CISCO SISTEMS 1,120km ● Access Network Huawei ●
Slide 21: The Investments Strategy focused on Network Development
The Investments Strategy focused on Network Development Goals Available Resources for growth • Becoming leader in the fiber industry in periferic areas where the major competitors are not present € 20-25 M planned investments in the next two years using: • Growth in Brescia, Bergamo, Mantova areas a
Slide 22: Financials
@) TELECOMUNICRZION! Financials 22
Slide 23: After a sound 2017, profitable growth continues in 2018
After a sound 2017, profitable growth continues in 2018 Company ● Preparing for IPO: roadshow ● The infrastructure network ● 2018 Revenues at €17.2M activities with institutional increased by 30% in 1 year (+20% YoY ‘17-’18) investors to 1,950 km ● 1H2018 EBITDA at € 3.3M ; ● Successful IPO – AIM ma
Slide 24: A Successfull IPO
A Successfull IPO Number of Shares 15,850,500 Free Float 21.40% «The result of the IPO confirms the validity of Market Cap 36M our growth project that will allow us to seize new business opportunities.» Daniele Peli Shares issued 4,861,000 New issue 4,420,500 Greenshoe 440,500 Price Adjustement Shar
Slide 25: Datalines constantly improved on a monthly basis
Datalines costantly improved on a monthly basis 30,000 25,451 25,858 26,268 24,217 24,367 24,544 24,980 25,000 23,206 23,598 23,934 22,306 22,716 21,937 21,123 21,455 21,727 20,335 20,556 20,756 19,275 19,634 20,007 20,000 18,548 18,862 15,000 10,000 5,000 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct N
Slide 26: Income Statement
Income Statement • H1 2018 Revenues increased by € 000 1H 2018 2017 2016 YoY% 20% to €8.3M ('17-'16) • ROS improved from 24.5% at the Value of Production 8,349 14,777 11,876 24.4% end of 2017 to 25.2% in the 1H Raw materials (81) (311) (180) 72.7% 2018 Services (1,228) (2,253) (1,793) 25.7% Other op
Slide 27: 2018 Revenues driven by FTTH&FTTC connections
2018 Revenues driven by FTTH&FTTC connections €M 20.0 18.0 +20% 17.2 ● 2018 Revenues up 20% YoY +25% 16.0 14.4 14.0 The increase in turnover was supported mainly by sales of ultrabroadband lines: +26% 11.5 12.0 10.0 9.1 FTTH & FTTC for Business Customers and Micro Business +65% to 2.9M 8.0 Housi
Slide 28: 1H 2018 Costs
1H 2018 Costs Raw materials 2% 1H 2018 total costs at € 3.8M Personnel Costs 26% Services €1.7M of Rental related to Broadband and 25% Ultrabroadband Accesses. Personnel costs amounted at €1.2M, 60 employees of which 20 dedicated to the commercial area Network maintenance costs of around €0.2M are a
Slide 29: Strong Balance Sheet
Strong Balance Sheet € 000 1H 2018 2017 2016 € 000 1H 2018 2017 2016 Net Working Capital (5.682) (4.195) (5.097) Net Financial Position 2.899 4.077 2.479 Net Fixed Assets 20.074 18.214 14.900 Net Equity 10.954 9.439 6.906 Other assets/liabilities (539) (503) (418) Net Invested Capital 13.853 13.516
Slide 30: 1H 2018: Investments continues
1H 2018: Investments continues Investments since INTRED’s founding • Total €22M Network Development Capex €/M • Reached 1,700km of optical fiber and over 22,000 users 6.0 5.2 1H 2018 5.0 4.2 • 1H 2018 investments at € 3.1M over 30% of revenues focused on 4.0 FTTC and FTTH networks development in Bre
Slide 31: Net Equity and Net Income
Net Equity € M Net Income vs Net Income margin € M 12.0 11.0 3,0 20% 10.0 9.4 17% 18% 2,5 18% 16% 8.0 14% 6.9 2,0 14% 2,5 12% 6.0 5.3 1,5 10% 9% 1,6 1,5 8% 4.0 1,0 6% 2.0 0,9 4% 0,5 2% - - 0% 2015 2016 2017 1H 2018 2015 2016 2017 1H 2018 Net Income Net Income margin 31
Slide 32: Headquarter, Investor Relations, Next Events
HEADQUARTER INVESTOR RELATIONS NEXT EVENTS INTRED S.p.A Intred CDR Communication BOARD OF DIRECTORS MEETING to Via PietroTamburini 1, CFO & Investor Relations Officer IR Advisor review the consolidated financial 25136 Brescia (BS) Filippo Leone Vincenza Colucci statements Tel. +39 391 4143050 Tel. +
Slide 33: Thank you
Thank you 14 maggio 2018 Presentation 2018 www.intred.it