Rai Way S.p.A.

Good afternoon. This is the Coral School Conference Operator. Welcome and thank you for joining the Raiway First Quarter 2022 Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time... I would like to turn the conference over to Mr. Giancarlo Benucci, Chief Corporate Development Officer of Raiway. Please go ahead, sir.

Thank you, operator, and good afternoon. Let me start thanking all of you for joining us today and welcome to our first quarter 2022 results presentation. As per tradition, following the extensive call held just a few weeks ago on the full year results, Today we will try to keep it relatively short, focusing on a quick financial and operational update and leaving then room for your questions, which we believe will be forthcoming. Let me therefore hand the call over to Aldo Mancino. Please, Aldo, go ahead.

Thank you, Giancarlo. A good afternoon to all of you. As expected, the first quarter of 2022 showed a remarkable growth in line with our expectations with revenues growing by 6% benefiting from the inflation boost, the contractual step-up relating to the refarming for Rai, which began, as you may remember, in the second half of 2021, and whose impact will also be visible in the second quarter. And then the first contribution, still minor, from regional refarming, which is due to grow significantly in the coming quarters. Top-line growth was sustained by an exceptionally light cost base, the result of operating leverage, cost control, and an electricity bill that was still enjoying the fixed price contract that was still in place until the end of March. All in all, ABTDA was up 15.5%, with a record margin just under 66%, more than 500 basis points, higher than last year. On the operational side, refarming once again was the main driver of development investment. On the national front, the new network rollout being in line with the roadmap, Adriatic and southern regions have been completed, and we are now proceeding with the Tyrrhenian ones. On the regional front, the network activation in six out of the seven areas and the achievement of almost full capacity utilization following the commercialization phase, which has resulted, as of today, in more than 100 customers using our frequencies. Regarding the new services, the rollout of fiber optic backbone upgrade has started, while the design and procurement phase is continuing in the other projects. Now, before moving on to our usual financial highlights, let me reaffirm our confidence following the performance of the first quarter and the current market expectation on the evolution of electricity prices in the guidance for the full year provided last March, to which I will return in a moment, and of course, our full commitment to pursuing the opportunities included in our industrial plan. On slide five, you can see how in the quarter core revenues exceeded 60 million euros thanks to the aforementioned effects, while adjusted EBITDA matching EBITDA in the absence of one-off items jumped by 15% to 39.5 million euros. delivering a double-digit growth, even at bottom-line level, where net income neared €19 million. Investments in the quarter saw a temporary slowdown to €9.2 million, also due to some supply delays that mainly affected maintenance capex, already traditional low at the beginning of the year. This has helped net debt, which stood at just under 71 million euros, down from the year-end closing of around 88 million euros. And above all, cash conversion, which exceeded 98%. And with this, I'll hand over to Adalberto to provide you with details on the main items of our results, financial results. Please, Adalberto, the floor is yours.