Cellnex Telecom Sa Ord

Good morning, everyone. My name is Juan Gaitán, Cellnext Director of Investor Relations, and I would like to thank you all for joining us today for our Q1 2023 resource conference. As always, I'm joined by our CEO, Tobias Martínez, our CFO, José Manuel Aiza, and our Deputy CEO, Alex Mestre, who will lead today's session. We will now show them in highlights of the period, and then we will open the mind for your questions. As a reminder, if you wish to ask a question, please press Start File on your keyboard. So without further ado, over to you, Tobias.

And thank you, Pablo, and good morning, everyone. And thank you so much for your time today. I would like to start highlighting that Cellnix, once again, providing a solid quarter, both commercially and operationally, and that while the new CEO search process is well on track. The whole organization is aligned and fully committed to the execution of our strategy and meeting our public targets. Of course, this also applies to our board of directors who completely endorses our new capital allocation policy, which will remain in place and guide our actions regardless of leadership changes. Therefore, today, I would like to take the opportunity not just to provide some additional color about the quarter, but also to insist on the main characteristics of the next chapter of our equity story, which will be focused on execution, maximization of cash flows, and an unconditional commitment to investment rate ratings. The period has been marked by an excellent commercial performance and a consistent operational execution, with POPs increasing close to up 7% compared to last year, revenues increasing 15% excluding pass-throughs, our adjusted EBITDA 15% and our recurrent leveraged free cash flow 12%. This will constitute the sell next pattern going forward and increase focus on organic growth and continue progress on the crystallization of efficiencies and synergies. in order to make sure that our OPEX leases remain under control. The next chapter will also focus on free cash flow generation, with this metric trending to neutral by the end of this year thanks to the contribution from the remedies process in France. securing investment rating as the overarching priority, with any excess cash generated in the future to be deployed in a manner consistent with maximizing long-term shareholder value. Linked to this, the assessment of strategic options for our current portfolio in order to crystallize value, accelerate the investment rate process, and further reduce our cost of capital. As mentioned earlier, we have an unconditional commitment to our public targets, so we are reiterating our guidance for 2023 and 2025. And finally, as a result of recent changes, we are strengthening our corporate governance with Ana Bubero appointed as non-executive chair of the board and two vacancies being filled with a representative from TCI and an independent director. As we have constantly reiterated our executive compensation structure, ensures a perfect alignment between remuneration policy and our strategic targets. And I will now hand over to our CFO, Jose Manuel Aiza, who will provide more details on the period.

Thank you, Tobias. Since you already have the full presentation, I will just provide a few additional comments on the quarter, our capital allocation priorities and financial strategy. The quarter has been an excellent commercial performance, with organic POPs growing at 6.8% compared to the same period last year. This is primarily due to the bit-to-shoot progress made in France and Poland, the strong contribution from the new entrant in Portugal, and organic revenue generated in Italy in the context of brand-sharing agreements in place. Excluding the impact from pass-throughs, revenues have increased 15% in the period and recurrent thickest flow 12%. Please bear in mind that recurrent thickest flows is temporarily affected by payment of leases and interest being concentrated during the first half of the year. Defining free cash flow as recurrent level free cash flow minus expansion capes minus P2S plus cash received from revenues. We are expecting to become free cash flow neutral in 23. Going forward, our free cash flow duration will further accelerate as we reach the end of our P2S products and this underpin our rapid deleveraging. Cellness is constantly monitoring market conditions and assessing the benefits of different instruments in order to decide the most appropriate way to tackle near-term refinance needs. As such, we are currently working to push debt maturities forward, considering a number of options. And if required, we can always use already available and drawn credit facilities to meet these financial needs. Going forward, generated cash flow will substantially exceed our debt maturities. As Tobias has already mentioned, we have made the conditional commitment to maintain adjusted leverage consistently below 7 times with the objective to become investment-grade by S&P, as well as to maintain our investment-grade status by Fitch. This commitment to investment rate should allow fairness to access a deeper market at compelling terms. And in this sense, we are already assessing strategic options for our portfolio to crystallize value and accelerate this process. And finally, just a quick reminder of our executive compensation structure that ensures a perfect alignment between remuneration and strategic targets. First, our annual bonus in 2023 will be linked to organic growth, recurrently-efficient flow, net debt VTA, consistent with our path to investment grade, as well as ESG initiatives. Our 2023-25 notary incentive plan is linked to absolute and relative PSR, free cash flow, generation, and ESG initiatives. And this is the structure that will remain in place when the CEO process is resolved. And with this, we remain now at your complete disposal to answer any question. Thank you, Tobias. Thank you, Josue Ahmed. The first question comes from Ilda Tani, from J.K. Morgan. Please go ahead.