Infrastrutture Wireless Italiane S.p.A.

Good afternoon. This is the Coru School Conference operator. Welcome and thank you for joining the Inuit Second Quarter 2021 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.

Thank you. Good evening, everyone. Thank you for taking the time to connect the English Second Quarter 2021 results presentation. With me today are Giovanni Ferrigo, 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. As usual, the presentation will be followed by a Q&A session. Over to you, Giovanni.

Thank you, Fabio, and welcome, everyone. It has been a busy last three months. We delivered a solid set of financial results in Q2 as we continue to make progress from an operational perspective. Beginning with financials, Q2 showed a clear acceleration. Organic revenues increased by 4.5% year-on-year. ABDAL growth was up 6.9% with expanding margins. Recurring free cash flow increased by 15%. Industrial KPIs continue to grow. We added new tenants. We deployed new macro sites. We added new DAS remote units and continued to optimize ground leases. The pace of new tenant addition is stable, quarter on quarter, while discussion on the remedies process continues. We also closed a very important investment agreement, entering a new market segment for coverage of highway infrastructure, investing in existing dust, providing connectivity to about 1,000 kilometers of tunnels across Italy. This confirms our leadership and innovation capabilities, positioning us in Addison's market segment with interesting prospects from the coming years. More in the short term, we confirm our expectation for the year. The time effect of new POPs is mitigated by the other actions on revenues and lower ground leases. Based on Q2 results, we expect Revenue and EBITDA on the low end of the guidance range and EBITDA and free cash flow on the high end of the guidance range for 2021. Today's figures and the new agreement announced reinforce our structural growth story and outlook, helped by the positive external scenario in Italy after the simplification decree and the positive investment cycle driven by next generation EU. Let's now move to KPIs on page four. Anchors continue to show a positive trend, growing quarter on quarter. Team members of the fund make progress in the optimization, expansion, and densification of their network in line with MSA growth expectations. In line with our guidance, Q2 also recorded an acceleration in the number of new sites. The pace of growth has changed. We have gone from about 70 new sites in 2020 to 130 in just this quarter, and more than 400 in 2021, adding another growth in gene. New tenants from other parties were 290 in the quarter. We made progress with MNOs in size below 50,000 people, 55,000 people, where the remedies don't apply. We updated the commercial agreement with Iliad and added more POPs than in the previous quarter, a trend which will continue in Q3 and Q4. The review of the remedies process is ongoing. limiting the matching of demand and offering towns above 35,000 people in a fast and material manner. We are following the discussion around the remedies, which continue with the involvement of all parties, and are hopeful that an agreement will be found so that we can unlock the strong demand we see for our sites. There is a clear match between our specific location and market needs. So, again, we think this is a timing and process topic. We also experienced a relatively soft fixed water access demand for specific customer situations, which we consider temporary, also linked to the timing effects of next-generation European funds. Fixed water access demand continues to be a key driver. We have a strong pipeline of significant projects and expect to be able to share even more good news in the short term. Turning to slide five. An important element of our business model is our ability to optimize the returns on our assets. In-width tenancy ratio is among the highest in the industry. and continues to grow, adding recurring revenue stream to our asset base. Plus, there is a potential for improvement in ground lease costs. With Inuit's real estate team, we have a strong track record and see further opportunities ahead. So, we continue to deliver a material expansion for margin for tower. Over the past year, we created value for more than €1,000 per sales in terms of additional EBITDA. Let's now look at the new services on page 6, starting with DAS. We keep adding remote units and securing locations in key verticals, including public administration, healthcare and transportation. In the quarter, we added 350 dust remote units. At the same time, our regular discussion with operators created an opportunity to accelerate investments in a very interesting market segment, a first time for Inuit and a competitive advantage. We secured a portfolio of dust systems from Volafone, covering important locations on about 1,000 kilometers of motorways and road tunnels. We will be managing dedicated coverage of a critical transportation infrastructure. We will invest to renovate and upgrade the assets, providing mobile connectivity and coverage, a key vertical which will benefit from next-generation EU funds. As you know, coverage of dedicated transportation infrastructure is one of the market drivers for the tower sector in Italy. given the opportunity to increase network quality. This project, with a 70 million euro investment and MSA with Vodafone, allows us to cover a new market segment on assets which are very difficult to replicate and have significant potential for new tenants. There will be a positive financial impact from day one, with a growth trajectory as we reach run rate and execute our commercial plan. In the medium term, this adds visibility to DAS revenues and their contribution to our business plan, positioning us as a leading player in a new segment. Moving to the next slide for an update on the next generation European funds. We discussed our next generation EU funds are a tailwind to our business, improving the investment cycle in wireless infrastructure and macro sites, speeding up the development of DAS. Today, we would like to provide more details around the process and the specific application to win with. On macro sites, there are 7 billion euros in terms of 5G and broadband. More in practice, The plain Italy 5G and the plain Italy at 1 giga are particularly relevant for us. There will be more resources for 5G. Fixed wireless access will reach more towns more quickly. Industry 4.0 and digitalization investments will speed up the development of DAS, since more mobile connectivity will be needed. So, How do we expect to access the next generation European funds via call for tenders, taking part in a competitive bidding process, and through public-private partnership by seeing an agreement with a public institution and promoting a specific project? So, directly or through our clients, we expect the next generation EU will support our outlook. In terms of timing, The next milestone is towards the end of the year and into 2022, when we will start applying for these projects. Most of the funds will be deployed by 2023, and projects need to be completed by 2026. Again, we feel it's important to highlight the consistencies of our core assets and strategic focus with next-generation EU funds. Our new commercial agreement on transport infrastructure confirms this. With this, I hand it over to Diego. Thank you. Please, Diego.