Infrastrutture Wireless Italiane S.p.A.

Good afternoon. This is the Coru School Conference Operator. Welcome and thank you for joining the Inuit 4th Quarter and Full Year 2020 Financial 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. Fabio Ruffini, Head of Investor Relations. Please go ahead, sir.

Good evening, everyone. Thank you for taking the time to connect the INVIS full year 2020 results presentation. With me today are Giovanni Terrigo, our Chief Executive Officer, and Diego Galli, our Chief Financial Officer. Before we begin, Please allow me to draw your attention to the safe harbor statement on page two of the presentation. Today's session will begin by discussing the key strategic and financial highlights of the year, to then move to an assessment of the current environment and near-term outlook. Presentation will be followed, as usual, by Q&A session. Over to you, Giovanni.

Thank you, Fabio, and welcome, everyone. I would like to start from where we left in November, when we shared the business plan and highlight again the key features of the new Inuit. Inuit has the best quality assets in the market, which is a key competitive advantage, an ideal position to capture growth opportunities, the rollout of 5G, and an overall digitalization of society, two tier one anchor tenants, team Vodafone, and a neutral loft role in the market, translating superior organic growth in terms of revenues and free cash flow generation. A plan to reduce leverage progressively, which will give us additional opportunity. In 2020, there is no doubt that we have grown up. We are better equipped to capture the exciting opportunities that the market and industry present, also in the framework of the next generation EU. The look of the investment cycle is improving on digitalization, green transition, transportation, and healthcare. A move to modernize the Italian economy in which Inuit plays a central role. And it has been a very busy year on all fronts. Going to slide four. We deployed a new team, organization, and governance structure since day one. We invested in human capital and further aligned management incentives to the market. We made significant progress to separate our operations and back offices from teams. We signed several new commercial agreements. We changed our operational process to support the new MSAs and comply with the remedies and opened the transfer register. We also successfully entered the debt capital market for the fifth time. Through this project, we consolidated a platform as an independent infrastructure player capable of playing a leadership role in enabling the digital transformation for the anchor tenants as well as the other operators in the market. the market, looking at a summary of our solid results. Slide number five. We delivered a robust Q4 with an acceleration in organic revenue growth of over 3%, compared to just under 2% in the third quarter. Hospitalities in the last quarter were a record height of 1,000, twice as much as what was achieving Q3 and guidance, achieving a total of 1,500 in the second half of the year. Further progress was made in the new services, small cell and DAS, bringing total new remit units for the year to more than 1,000. Cost optimization was very solid. with more than 600 renegotiation and land acquisition in the quarter. I'm satisfied with this result, which meet the 2020 guidance, allows us to confirm the dividend proposal of 30 euro cents for share and a solid entry point into 2021, and which give us confidence to confirm our midterm guidance. These results were achieved in a difficult contest due to the pandemic, as you know. We didn't record any significant impact from COVID. Our infrastructure helped companies and individuals to better cope with their challenges, something that we are proud of. Now, looking at our main KPIs on slide six, we are pleased with the development of the main KPIs, especially the step change in new hospitalities, approximately 1,000 in the quarter, with new POPs more than doubling quarter on quarter, thanks to the progress in the common grid. Also, new POPs with other parties were up 12% on a yearly basis, when compared like for like with the end of 2019. This trend is driven by the prevalent role of the fixed-wallet asset and interesting growth opportunity in the Italian market. There are several operators, OpenFiber, Eolo, FastWeb, Lincoln, which are our clients and are deploying fixed water access services to bring high-speed broadband in the low-density areas. As the next steps, we are focused on improving the revenue mix through more MNOs. Also, because of the rapid increase in demand, we are also focused on shortening the end-to-end delivery cycle. Another positive to underline is that our tenancy ratio is up to 1.91 of the highest in the industry. We are very much on the right growth trajectory. Moving on the new services on slide seven. We are making solid progress on new services with more than 1%. 1,100 new small cell and DAS remote units in the year, up 33% as compared with 2019. Over the course of 2020, DAS advanced especially in verticals such as health and education. We entered the industry 4.0 vertical with a highly automated Phyllis Morris Electronic Cigarette Plant in Bologna. We signed a contract to make the new underground metro in Milan 5G ready, and we are ramping up the repeater business with over 1,000 bank branches covered as of December with the top Italian banks. We are confident about the outlook for DAS. There is a growing market awareness and demand from location owners. We are ready to capture the opportunity with the dedicated sales organization in place. Also, the Next Generation EU funds add 200 billion euros to support projects in a variety of areas related not only to 5G, but also to healthcare, education, public sectors, transportation, industry automation. which are all segments already in our track record and strategic focus. Now, Diego, please, we'll discuss our financials in more detail.