Infrastrutture Wireless Italiane S.p.A.

Good afternoon. This is the Coral School Conference Operator. Welcome and thank you for joining the INWIT First Half 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. Fabio Ruffini, Head of Investor Relations of InWit. Please go ahead, sir.

Good evening, everyone. Thank you for taking the time to join us for InWit's second quarter 2022 results conference call. 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 2. Following our presentation, we'll be happy to take your questions. Over to you, Giovanni.

Thank you, Fabio, and welcome, everyone. Today's presentation is focused on a few messages. Rebound of KPIs, more than doubling new site versus Q1, step up in Holos. Continued execution of financial targets with high single digit organic revenue growth. Margin expansion and confirming 2022 guidance. A stronger infrastructure with the two new commercial agreements for hundreds of new sites having value for the long term. The net positive impact of inflation on financials and on business plan targets. The confirmation of the structural positive strength in the wireless infrastructure industry and in with assets, macro and micro grid well-positioned to capture this growth. A quarter of solid progress, which confirms our role as the main wireless infrastructure company in the Italian market. The key results of the quarter are displayed on page four. Beginning with industrial KPIs, We deliver the rebound that we discussed last time that we spoke. New sites and holopots more than doubled versus one. We have an improved internal site delivery process, and there is a positive demand from fixed-water access and OTMO. This trend will continue in the coming quarters. Demand for new sites in the Italian market is very strong. Regarding financial, We started the year strongly in Q1, and Q2 confirmed this trend. Consistency across quarters is an important feature of our business model. On the best organic revenue growth trends in the industry at plus 9%, with 30% EBITDA growth, margin expansion, and solid cash flow generation. This is supported by least cost efficiency. with more than 650 renegotiation and buyouts. The next three pages focus on the main components of our revenues, beginning with Anchor on page five. Anchor POPs are up 7% year on year. This is driven by MSA commitments. and the industrial need to improve coverage and roll out 5G in the most efficient way that is through the partnership with Inuit. We added 2.5 thousand new ports over the past year and are satisfied about the pickup in new sites. We delivered 120 new sites, a sign that the changes we made internally are working. We expect higher site delivery in the coming quarters and 500 sites in 2022. POP growth was lower, mainly due to lower new sites build activity in Q1. MSA commitment continues driving our P&L and we expect an improvement in Anchor POPs in the second half of the year based on the current pipeline. Turning to our clients on page POPs by other clients were up strongly year on year, plus 15% confirming the quality of our asset and in-width role and neutral loss. One of the best results in the industry and a record quarter for in-width. 540 new tenants, nearly double versus Q1. Fixed viral access and optimal clients supported the results, with MNOs still focused on towns below 35,000 population where the remedies don't apply. This is a diversified client base placing equipment and sensors on our towers for a limited incremental cost and low electromagnetic field spectrum. The commercial effort on the OTMO category is being effective. We address the strong demand from utility and security companies, adding services to the tower, which is becoming more and more a digital asset. Having delivered a solid Q2, our focus now shifts to making sure we keep a high run rate in the coming quarter. Moving to new services on page seven. This is a very dynamic part of our business, where DAS and repeaters work in synergy wind towers, macro sites. Market demand is driven by coverage needs of transportation infrastructure and indoor location, with a variety of different customer and application verticals, corporate headquarters, entertainment venues, hospitals, industrial sites, and public administration buildings. So far in 2022, the healthcare vertical has been the most interesting. There are more than 3,000 locations in Italy, which will need to be covered by 2026, and we target about one-third of the market. Going forward, we expect a further pickup in new services, which will grow at rates above English average in the coming years, also supported by next-generation EU. Two important new commercial agreements on page 8. With the quarterly results, we are also proud to share two important agreements, which will reinforce our asset base and long-term potential. First, Open Fiber, an important client to Inuit, where the partnership is reinforced by a new contract for the building of sites in remote areas. This adds visibility to our overall growth targets. Then, the 5G Next Generation EU Tender, where we led a consortium with Tim and Vodafone to win all six available lots. The aim of the tender is to support 5G adoption in a market-fired area through new sites where the investments are subsidized for 90%. This goes in the direction of confirming our expectation for next generation EU, positive for the industry, but mostly win an indirect long-term impact rather than transformational in the short term. The two new commercial agreements with large customers affirming Inuit as a key digital infrastructure player in Italy and supporting the reduction of digital divide. Let's now turn to the financial. Diego, over to you.