Intred Spa · MIL:ITD
Intred Spa — AIM Conference 2018
33 slides from Intred Spa's conference presentation, October 2018
Slide 1: Company Presentation AIM Conference 2018
Company Presentation AIM Conference 2018
Slide 2: THIS DOCUMENT HAS BEEN PREPARED BY INTRED S.P.A. (THE “COMPAN Y”) FOR THE SOLE
THIS DOCUMENT HAS BEEN PREPARED BY INTRED S.P.A. (THE “COMPAN Y”) 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 H AS A MEREL Y INFOR MATIVE AND
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 1,700 km of optical fiber and 130 company, through a proprietary network, operates with a strong 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 INTRED SRL WAS FOUNDED THE CONQUEST OF BRESCIA LISTING ON AIM STOCK EXCHANGE 1H 2018 22,811 € 14.7M CAGR Revenues 10x ‘15-’17 in 10 Revenues +65% +25.5% years #Clients x5 1996 1997 1998 1999 2000 2001 2002 2003 2004
Slide 6: Financial Highlights: Strong Growth in 1H 2018
Financial Highlights: Strong Growth in 1H 2018 Revenues (€M) EBITDA(€M) +24.4% 6,0 CAGR 15-17: 38,5% 45 , 0% CAGR 15-17: 45.8% 25.5% 40% 40 , 0% +26.5% 14.8 5,0 33,9% 35 , 0% 11.9 4,0 5,7 30 , 0% 25 , 0% 9.4 3,0 26.2% 20 , 0% 4,0 8.3 2,0 3,3 15 , 0% 2,5 10 , 0% 1,0 5,0% - 0,0% 2015 2016 2017 1H 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 Shareholder Structure Stock Performance 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% Fixed-line ● After a 5-year negative trend, the TLC industry reported an 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 netw orks: +63.7% CAGR speed >30mps: +121.3% • Broadband access has reached 16.7M units, w ith an • The trend of reducing access through the coppe
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 Broadband Access 19.5K units 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 analy sis on companies 2017 f inancial 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 93% of INTRED’s revenues are based on Σ Recurring recurring fees and traffic fees Ʃ Canoni Ricorrenti €€/Milioni mln ▪ Upselling new services to existing clients to push revenues Fatturato Rev enues T2 t2 Risc.Pass. NEW New t1
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 Piem
Slide 20: At the Forefront of Innovation: The Network
At the Forefront of Innovation: The Network 1H 2018 INTRED has a network structured for 80000 costumers with 1,700km 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 Huawe
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
@) TELECOMUNCRZION Financials 22
Slide 23: After a sound 2017, profitable growth continues in 1H 2018
After a sound 2017, profitable growth continues in 1H 2018 Company ● Preparing for IPO: roadshow ● The infrastructure network ● €8.3M of Revenues activities with institutional increased by 13% in 6 (+20.1%) investors months to 1,700km ● € 3.3M EBITDA ; EBITDA ● Successful IPO – AIM market ● 24,217 D
Slide 24: A Successfull IPO
A Successfull IPO Number of Shares 15,850,500 «The result of the IPO confirms Free Float 21.40% the validity of our growth project that will allow us to seize new Market Cap 36M business opportunities.» Daniele Peli Shares issued 4,861,000 new issue 4,420,500 Greenshoe 440,500 Price Adjustement Shar
Slide 25: Datalines costantly improved on a monthly basis
Datalines costantly improved on a monthly basis 30,000 23,598 23,934 24,217 ● During the 2018 first semester the number of 25,000 22,716 23,206 22,306 users with datalines have increased 19,275 19,634 20,007 20,335 20,000 18,548 18,862 significantly: ▪ + 11% from 31/12/2017 15,000 ▪ + 19% YoY 10,000
Slide 26: Income Statement
Income Statement • H1 2018 Revenues increased by € 000 1H 2018 2017 2016 YoY% 20% to €8.3M ('17-'16) Value of Production 8,349 14,777 11,876 24.4% • ROS improved from 24.5% at the 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: Revenues driven by FTTH connections
Revenues driven by FTTH connections €M Total Revenues Growth 16.0 +24.4% 14.8 ● 1H 2018 Revenues up 20.1% YoY 14.0 11.9 12.0 The increase in turnover was supported mainly by sales of ultrabroadband lines: +20.1% 10.0 8.3 ▪ FTTH for Business Customers +56.8% to 2.9M 8.0 6.9 ▪ FTTC for micro-business
Slide 28: Costs
Costs Costs Breakdown Raw materials 2% ● 1H 2018 total costs at € 5.0M Personnel Costs 26% Services ● €1.7M of Rental related to Broadband and 25% Ultrabroadband Accesses. ● Personnel costs amounted at €1.2M, equal to 14.8% of revenues ● 60 employees of which 20 dedicated to the commercial area ● Ne
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: Net Equity and Net Income vs Net Income margin
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 6.9 14% 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 30
Slide 31: 1H 2018: Investments continue
1H 2018: Investments continue 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 4.0 • 1H 2018 investments at € 3.1M over 30% of revenues focused on FTTC and FTTH networks development in Bres
Slide 32: Headquarter and Investor Relations
HEADQUARTER INVESTOR RELATIONS INTRED S.p.A Intred CDR Communication Via PietroTamburini 1, CFO & Investor Relations Officer IR Advisor 25136 Brescia (BS) Filippo Leone Vincenza Colucci Tel. +39 391 4143050 Tel. +39 335 6909547 Tel: +39 030.72.80.200 [email protected] [email protected]
Slide 33: Thank you
Thank you 14 maggio 2018 Presentation 2018 www.intred.it