Rai Way

Investor Presentation • Mar 26, 2024

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2024-2027 Industrial Plan 2023FY results and 2024-27 Industrial Plan Analyst Call

26th March 2024

FORWARD LOOKING STATEMENTS

This presentation contains forward-looking statements regarding future events and the future results of Rai Way that are based on current expectations, estimates, forecasts, and projections about the industries in which Rai Way operates, as well as the beliefs and assumptions of Rai Way's management. In particular, certain statements with regard to management objectives, trends in results, margins, costs, rate of return and competition tend to be forward-looking in nature. Words such as "expects", "anticipates", "targets", "goals", "projects", "intends", "plans", "believes", "seeks" and "estimates", variations of such words and similar expressions, are intended to identify such forward-looking statements. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Therefore, Rai Way's actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. They are neither statements of historical fact nor guarantees of future performance. Rai Way therefore cautions against relying on any of these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, the impact of competition, political, economic and regulatory developments in Italy. Any forward-looking statements made by or on behalf of Rai Way speak only as of the date they are made. Rai Way undertakes no obligation to update any forward-looking statements to reflect any changes in Rai Way's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

Rai Way speakers

Roberto Cecatto, Chief Executive Officer

Adalberto Pellegrino, Chief Financial Officer

Giancarlo Benucci, Chief Corporate Development Officer

Marking the ninth consecutive year of steady growth

Mln Eur; %

1) Recurring FCFE = Adj. EBITDA – Leases – Net Financial Charges – P&L Taxes – Recurring Maintenance Capex. Figure for 2021 restated to exclude a € 1 mln one-off tax benefit 2) Leases impact estimated as sum of leasing right of use depreciation (excl. dismantling) + financial charges on leasing contracts

Key messages on 2023

• 4Q confirmed the healthy performance of the 9M leading to:
  • o Core Revenues up 10,8% (or >12% excluding non-recurring impacts) mainly driven by CPI-link and regional refarming; ~20% growth of Third-parties contribution
  • o Adjusted EBITDA up 19,4% (margin +475bps at 66,3%) in line with guidance, supported by top-line growth, significant reduction in energy bill and firm cost control on other items
  • o Development capex at €46m (Third-Party portion >70%), with a marked acceleration in 4Q
  • o Recurring cash generation up >20% at € 114m
• 32,22 €/cent dividend proposed to the AGM, equal to 99,7% pay-out and 6,7% dividend yield(1)
• Following confirmed Board support, all diversification projects underway; Hyperscale authorization process moved to next stage
• Tower hosting benefitting from healthy demand from FWAPs and radio broadcasters
• Debt refinancing finalized
• 88% of 2021-23 Sustainability Plan's initiatives successfully completed enabling further enhancement of Company's ESG profile
• OUTLOOK

OPERATING

UPDATE

FINANCIAL RESULTS

• Adjusted EBITDA to keep growth trajectory in 2024, despite new infra-related costs and lack of energy tax credit
• Development capex level in line with 2023

5

2023FY Financial highlights Mln Eur; % % YoY growth

1) Capex excluding component related to IFRS-16 leasing. Development capex figure include € 4,8 million related to fiber IRU, reported under IFRS-16 financial liabilities in the financial statements

2) Cash conversion = (Adj. EBITDA after Leases – Maintenance Capex) / Adj. EBITDA after Leases. Leases estimated as sum of leasing right of use depreciation (excl. dismantling) + financial charges on leasing contracts

Core Revenues

• Excluding non-recurring impacts (e.g. termination of a minor radio service in 3Q22):
  • RAI fixed consideration up in line with CPI
  • New services to RAI up by approx. 15% benefitting from CPI-link and a number of small-size projects (e.g. DAB coverage extension, signals transport, …)
• Third-parties up by approx. 20% driven by regional refarming, inflation escalator and healthy performance of FWAPs and radio broadcasters (both at ca. +20%)

7

OpEx (excluding non-recurring)

• Excluding non-recurring benefits reported in 2022 and some non-core components, relatively stable underlying personnel cost (and headcount)
• Approx 10% reduction of Other Operating costs: o energy bill down 37% vs. 2022 as a result of sharp price decline (despite lower tax credit and incentives on ancillary tariff component) and consumption efficiency (-11%)

	2022FY	2023FY	Δ
Raw energy(1) price	257	134	-48%
Tax credit impact (equivalent per MWh)	-34	-18
Ancillary components (equivalent per MWh)	45	75
Total price (equivalent per MWh)	268	190	-29%
Consumption	75,8	67,4	-11%
Energy bill	20,3	12,8	-37%
o underlying trend of other cost items up 6,6%

P&L

Eur Mln, %	4Q2022	4Q2023	% YoY	2022FY	2023FY	% YoY
Core Revenues	61,1	67,8	11,1%	245,4	271,9	10,8%
1) Other Revenues & income	0,1	0,5		0,5	0,9
Adj. EBITDA % margin	35,4 57,9%	41,9 61,8%	18,4%	151,0 61,5%	180,3 66,3%	19,4%
Non recurring costs	0,0	-1,7		0,0	-5,3
EBITDA % margin	35,4 57,9%	40,2 59,2%	13,6%	151,0 61,5%	174,9 64,3%	15,8%
2) D&A	-11,4	-14,7	29,3%	-47,2	-49,0	3,7%
Operating Profit (EBIT)	24,0	25,5	6,1%	103,8	126,0	21,3%
Net financial income (expenses)	-0,7	-1,6	118,3%	-2,1	-4,5	118,2%
Profit before Income taxes	23,3	23,9	2,7%	101,8	121,5	19,4%
Income Taxes % tax rate	-5,8 25,1%	-7,0 29,3%	19,7%	-28,1 27,6%	-34,8 28,6%	23,8%
Net Income	17,4	16,9	-3,0%	73,7	86,7	17,7%

2023FY Net Income up by 17,7% at € 86,7m despite €5,3m non-recurring costs:

• o Significantly higher EBITDA (+19,4%) and profitability (+475bps vs 2022)
• o Higher D&A following investment activity and provisions
• o Financial charges more than doubling reflecting higher interest rates
• o Tax rate back to normal level (2022 positively impacted by one-off)

Net Debt bridge

2023 recurring FCFE(6) at ca. € 114m

1) Excluding component related to IFRS-16 leasing; development capex include € 4,8 million related to fiber IRU, reported under IFRS-16 financial liabilities in the financial statements

2) P&L taxes

3) P&L financial charges excluding interests on employee benefit liability and interests on leasing contracts;

4) Including renewal of leasing contracts and interests on leasing contracts;

5) Including current financial assets

6) Recurring FCFE = Adj. EBITDA – Leases – Net Financial Charges (excl. IFRS-16 component) – P&L Taxes (adjusted to exclude benefits from non-recurring opex) – Recurring Maintenance Capex. Leases estimated as sum of leasing right of use depreciation (excl. dismantling) + financial charges on leasing contracts

2023 Recurring cash generation and dividend proposal

Dividend proposal

2014 2015 2016 2017 2018 2019 2020 2021 2022 20235)

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• 1) Recurring FCFE = Adj. EBITDA Leases Net Financial Charges P&L Taxes Recurring Maintenance Capex. Leases estimated as sum of leasing right of use depreciation (excl. dismantling) + financial charges on leasing contracts
• 2) P&L financial charges excluding interests on employee benefit liability and interests on leasing contracts
• 3) Development capex include € 4,8 million related to fiber IRU, reported as IFRS in the financial statements
• 4) Dividend yield based on market closing price on 20/03/2024 (4,79 €/share)
• 5) Dividend proposal

Outlook for 2024

● Outlook based on current level of power futures for 2024(1)

Adjusted EBITDA	Further growth of Adjusted EBITDA although limited by new infra costs and lack of energy tax credits	- CPI-link (+0,7% for RAI contract) - Rising contribution from DAB extension and regional refarming credits(1) - Higher expected energy tariff due to lack of tax - Costs related to new infrastructure/services, partially offset by lower other opex
Capex	• Maintenance capex on sales slightly above recurring normalized level • Development capex in line with 2023 level	- Maintenance includes extraordinary renovation of some towers - Large majority of development capex devoted to diversification and other Third-Party / internal projects

2024-2027 Industrial Plan

1. Assets and Market Analysis

Industrial positioning to support value, priorities to support execution

Industrial Plan compatible with both stand-alone and consolidation scenarios

Key levers to unlock Rai Way's full pontential addressed

Best-in-class and diversified asset portfolio underpinning a leading role as media distribution services and integrated digital infrastructure provider

Distributed workforce

• ~600 employees, half of which across the territory

Client portfolio

• Media, telco, corporate, and PA clients to leverage for diversification (cross selling)

• Carrier-neutral, state of the art, integrated infrastructure onestop-shop for clients' networks and data hosting
  • National footprint

The latest trends in media and digital infrastructure markets confirm the rationale behind the development guidelines

• Video consumption going up, driven by strong OTT platform growth
  • Video broadcasting: DTT resilience, confirming view on platform coexistance; broadcast network operators market structure stable following refarming conclusion
  • Video streaming: traffic volumes expected to keep growing as younger population increases media consumption
• Radio: market growing steadily post-pandemic, with sizeable opportunities to expand DAB network coverage

Tower and hosting market still defined by growth opportunities:

• 5G macro network expansion ongoing (in rural areas) with polarization on captive towerco
• FWA network growth, helped by Piano Italia 1Giga
• Demand from other client types (radio x DAB, IoT, ISP, …)
• TLC clients under pressure, with risks linked to access network / operator consolidation
• TowerCos: established spin-off practice to leverage synergies and push to diversification

Data centers:

• Demand growth due to data traffic increase, cloud adoption, new tech (AI, IoT, Big Data) and GDPR; low latency applications require widespread distribution
• Offer in Italy still limited vs potential fragmented, and geographically bound

Digital infrastructure

Media Services

Video consumption going up, driven by OTT & mobile fruition

Key messages

Media consumption growth driven by OTT and mobile

Forecasted slow down in OTT platform subscription growth with expected player consolidation

Growth of streaming subscriptions in Italy (M)

* OTT video (live streaming and VoD), online video and mobile video Source: Ampere Nov. 2023; Media consumption in Italy (PQ Media)

Despite the period of steep uptake of OTT, linear TV did not lose relevance remaining the platform with the highest audience and adv revenues

Video adv revenue share in Italy

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A long-term view where platforms coexist remains the most likely option

Broadcasting market characterized by stable relationships between network operators and TowerCos; MUX12 still to be allocated

Growth in video streaming and gaming fueling traffic managed by Content Delivery Networks

Post-pandemic steady growth for radio broadcasters; opportunities for DAB network coverage enabled by frequencies availability

National DAB coverage

• Following frequencies availability freed up by TV refarming:
  • Public tender to award new DAB frequencies incentivizes national networks coverage extension
  • Deployment of regional DAB networks in several areas

Radio Revenues in Italy (M€)

Telecommunication network rollout still guarantees hosting volume growth

• Main growth drivers:
  • o 5G adoption spreading to non-urban areas
  • o Fixed Wireless Network expansion, also pushed by Piano Italia 1Giga
  • o New client types
• Spin-off trend continuing
• Tower operators diversifying to grow
• Possible challenges:
  • o MNOs relying mostly on captive towers
  • o Access networks / operators consolidation (creating less demand for new towers, partially offset by RAN-sharing fees)

TowerCos are diversifying vertically towards new businesses to leverage current assets and capabilities for future-proof growth

Digital Infra demand growth fueled by exponential increase in data traffic and Cloud services that require Data Center infrastructures

* The Region Data Center (DC) is an area with high concentration of data centers, hence consuming more data than average Source: Gartner IDC; Pwc Entertainment & Media Outlook in Italy 2022-2026; Company Investor report presentations

Supply however still fragmented and scarce, with opportunities for Rai Way to expand its infra portfolio with hyperscaler and edge DCs

Colocation market expected growth at ~10% p.a. (edge component even higher…)

Infrastructure implementation & Infrastructure Managed Services market, by service type (€B)

Agenda

2024-2027 Industrial Plan

1. Industrial Plan Pillars and Related Initiatives

Industrial Plan Pillars

Enhance Rai Way positioning as media distribution services and digital infra provider

1) Strengthening traditional businesses/assets, by:

• 1.a) Taking advantage of selected growth opportunities, mainly related to network coverage extension
• 1.b) Increasing value of internal asset currently not used to full potential:

1.c) Improving operational efficiency, through:

• Operating model evolution
• Real Estate footprint optimization
• 2) Widening our role in the Media Value Chain, capturing rising demand for IP content distribution
• 3) Expanding digital infrastructure, completing roll-out and marketing the Data Center network to support digital transition

4) Speeding up strategy and improving capital structure through external growth:

• Achieving synergies and reduction of time-to-market
• Enhancing Shareholders' return

2024–2027 Capital allocation

1. Excluding cost of capitalized personnel. 2. Including development of CDN, 10 edge DC for ca. 3MW and first data hall of the hyperscale DC for 4,4MW (half of Module1) 3. Based on market closing price on 22/03/2024 (4,8 €/share) 4. Post IFRS-16

(Organic) Development investments: traditional businesses/assets continue to offer opportunities, acceleration of new infrastructure deployment

1) Capex including capitalized personnel

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Value creation on main projects

c. Assuming further development of the hyperscale data center to reach 17,6MW (2 out of 4 modules)

d. Multiple calculated including capex spent before 2024 for ca. €21m

Strengthening traditional businesses: growth opportunities

35

Initiatives to extend networks and optimize tower hosting

1 Improve RAI DTT network coverage

Activities to improve network quality

3 MUX12

Hosting or network management services (in case of MUX awarding)

4 Start RAI 5G broadcasting coverage

5G broadcasting networks in 5 test cities

2 DAB coverage...

Extend Rai DAB coverage, currently lower than the other 2 main market players

...and "DAB in galleria"

Improve coverage extending the signal in the main tunnels of the major highways

• 5G rollout
• FWA
• DAB (no RAI & local)
• MNO clients stabilization

Hosting Development Better processes & offering Expand offering

Optimize efficiency of requests logged into the system and internal provisioning process

• Fiber Backhauling in selected sites
• Radio backhauling

Widening role in media value chain

IP distribution of contents on proprietary CDN network: architecture and value proposition

Edge CDN creation project to be developed in 3 phases with the first two steps of set-up and scale-up to be completed by end of '24

Digital Infrastructure Expansion

40

Rai Way's new digital infrastructure

• Multi Edge Data Centers network
• 1 TIER-IV Hyperscale Data Center in Rome area (ca. 35MW potential, scalable IT load distributed across 4 buildings)
• Interconnection through proprietary backbone
• Clear value proposition for clients / partners:
  • Independent, reliable and carrier-neutral
  • Integrated Edge DC network to meet low latency requirements
  • Computing Continuum
• Pure infrastructure offering: co-location (space, energy, security) and connectivity
• High sinergies with societary assets:
  • Wide-spread footprint, with space available in relevant areas and brand new quality assets
  • Proprietary backbone
  • Possibility to upsell current clients
  • First mover advantage on edge

Differentiating factors

Edge DCs roll-out plan

18 Edge Data center: 10 (major) DCs to build in Phase 1 & 2, and more (minor) to build based on demand +

• ~ 3 MW IT load for the first 10 sites, possibly scalable based on demand
• Interconnected via own optic fiber and locally linked to the public network via ISP
• Built to be sustainable and create value from Rai Way's real estate

Edge DC Phase 1 approaching completion

Hyperscale DC | Rendering and concept design data

Data Center Modules Configuration

• 4 Modules with 8,8 MW IT Load per Module
• Emergency power supply and air conditioning
• UPTIME Institute TIER IV compliance
• Solar panels; centralized water supply
• «Conferenza dei Servizi» underway authorization possibly within 2024
• Construction time: 12-18 months
• First data hall availability (4,4 MW) and revenues contribution assumed from 2027

Why Rome

• Limited hyperscale DC presence (1 live, 4 in development), while Rome expected to become next italian HS region
• Assets currently concentrated in Northern Italy
• Lower latency for Center/South of Italy vs Milan
• Traffic managed by Rome IXP expected to grow
• Strategic location to aggregate international traffic

Commercial approach and priorities

Valorization of internal assets

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Transmission network to be leveraged for (wholesale) transport services

Land portfolio valorization

Rai Way analyzed possibility to create value from ~40 land plots, in 3 possible ways

Operating Efficiency Improvements

Enhancing efficiency in operating model improvements, corporate initiatives and real estate property management

Operating model initiatives

• Reorganization of regional departments
• Digitalization of monitoring of assets through the implementation of predictive maintenance

Maintenance accounts for the majority of field force activities

Real Estate Management

• Workplace evolution towards hybrid models (allowing spaces reduction)
• Benchmark on rental costs and service levels to identify room for further efficiencies
• Greater use of owned premises
• More efficient management of headquarter

• Digital transformation in systems (e.g. new BSS platform) and processes to enable further corporate efficiencies

External growth lever to accelerate strategy and improve capital structure

Target M&A – Areas of interest

Rai Way's commitment to sustainability: 2024-2027 ESG goals

SUSTAINABLE VALUE CREATION: 6 STRATEGIC GUIDELINES and 13 SDGs

Fight climate change and reducing environmental impact
Promote the well-being and development of our people
Contribute to the social, cultural and economic development of the community and territory
Ensure high standards of health and safety throughout the value chain
Development and maintenance of a governance system aligned to best practice, integrated with sustainability profiles
Develop technological innovation and contribute to the digitisation of the country

• Carbon Neutrality scope 1+2 by 2025
• Maintain 100% renewable energy purchase
• Cybersecurity training to at least 75% of employees
• Establishment of an internal control system related to ESG data and information ("CSRD")
• Full management alignment through the ambitious goals of the new LTI plan

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2024-2027 Industrial Plan

1. Financial targets

Key financial highlights(1)

1) On organic basis; 2) Based on CPI assumptions of: 0,7% in 2023 and1,5% in 2024-26, with impact on revenues in the following year; 3) Raw energy price assumption (excluding spread, green option and ancillary component): 95 in 2024 and ca. 85 in 2027 3) Excluding non-cash component related to IFRS-16 Leasing 4) Recurring FCFE = Adjusted EBITDA – Net Financial Charges – P&L Taxes – Recurring Maintenance Capex. All figures adjusted to deduct rents impacted by IFRS-16 from the calculation of cash generation

New Core revenues breakdown

ABC Traditional business/assets

• RAI Service contract (fixed consideration & new services)
• Broadcasting (regional Muxes, DAB networks & other clients)
• Transmission
• Network services
• CDN

Media Distribution Digital Infrastructure

• Tower Hosting
• Connectivity
• Edge data centers
• Hyperscale data center

Other

• Land valorization (solar energy production, leases, …)

2023 revenues

Core Revenues: 2023-27 evolution

Mln Eur; %

• 2027 figures based on the development of the CDN, 10 edge data center for ca. 3 MW and the first data hall of the hyperscale data center for 4,4 MW

• Assuming further development of the hyperscale data center to reach 17,6MW (2 out of 4 modules) with € 160m additional capex

M A I N T E N A N C E

Capex

center for 4,4 MW

Recurring FCFE: 2023-27 evolution

1) Recurring FEFE: Adjusted EBITDA – Leases – Oneri finanziari (excl. Componente leases) – Adjusted P&L Taxes – Recurring Maintenance capex 2) Based on market closing price on 22/03/2024 (4,8 €/share)

Net Income & Dividends

Mln Eur; %

●Proposed pay-out of around 100% of Net Income, in continuity with the past (average dividend yield(1) equal to ca. 6,7%)

●Expected distribution of approx. €350 Mln cumulated dividends in the 2024- 27 period, equal to more than 25% of current market cap(1)

• Capital structure evolution On an organic basis, 2027E financial leverage (post-dividend payment) at around 1,4x NFP(1)/Adjused EBITDA, giving flexibility to pursue external growth
  • Sustanaible and reasonable level of financial leverage in a 3-4x range, also depending on market conditions

M&A FINANCIAL CRITERIA

● Even within the same asset class (e.g. towers, data centers), targets may have different risk profile (e.g., DC already built vs. to be developed, with committed demand vs. without commitment, with high vs. low % fill rate) → Unlevered IRR level appropriate for the risk

profile of the asset

2024-2027 Industrial Plan

1. Closing remarks

A clear industrial path…

Renewed focus on 2 business segments (media distribution and digital infra) with a clear industrial proposition enabled by a modern, integrated digital asset portfolio

Traditional business continues to offer growth opportunities (networks expansion, efficiencies, asset valorization) thanks to a unique business model and competencies

Synergic, value-creating diversification confirmed, ensuring long-term sustainable growth

External growth to accelerate strategy and improve capital structure

….addressing key levers to unlock Rai Way's full pontential, while preserving its distinctive features…

Full awareness of key levers

Commitment to execution to unlock relevant Shareholders' value

…and defining near-term priorities for a successful execution

Move forward with assets roll-out

Finalize commercial agreements on new infra and services

Effort to accelerate on external growth

Q&A session

Appendix

Detailed summary of 2023FY Income Statement

(€m; %)	4Q22	4Q23	FY22	FY23
Core revenues	61,1	67,8	245,4	271,9
1 Other revenues and income	1,4	0,5	3,1	2,1
Purchase of consumables	(0,5)	(0,4)	(1,5)	(1,3)
Cost of services	(13,3)	(13,4)	(49,0)	(43,8)
Personnel costs	(11,9)	(13,8)	(43,7)	(51,4)
Other costs	(1,4)	(0,6)	(3,4)	(2,7)
Opex	(27,0)	(28,2)	(97,5)	(99,1)
Depreciation, amortization and write-downs	(11,4)	(13,0)	(47,2)	(47,3)
Provisions	(0,0)	(1,7)	0,0	(1,7)
Operating profit (EBIT)	24,0	25,5	103,8	126,0
Net financial income (expenses)	(0,7)	(1,6)	(2,1)	(4,5)
Profit before income taxes	23,3	23,9	101,8	121,5
Income taxes	(5,8)	(7,0)	(28,1)	(34,8)
Net Income	17,4	16,9	73,7	86,7
EBITDA	35,4	40,2	151,0	174,9
EBITDA margin	57,9%	59,2%	61,5%	64,3%

Non recurring costs - (1,7) - (5,3)

Adjusted EBITDA 35,4 41,9 151,0 180,3 Adjusted EBITDA margin 57,9% 61,8% 61,5% 66,3%

1) Other Revenues and income include tax credits related to electricity expenses

Summary of 2023YE Balance Sheet

(€m)	2022FY	2023FY
Non current assets
Tangible assets	280,8	297,4
Rights of use for leasing	33,4	33,0
Intangible assets	19,5	24,7
Financial assets, holdings and other non-current assets	0,9	0,9
Deferred tax assets	1,8	2,9
Total non-current assets	336,4	359,0
Current assets
Inventories	0,8	0,8
Trade receivables	66,2	74,8
Other current receivables and assets	2,5	1,4
Current financial assets	1,5	0,3
Cash and cash equivalents	35,2	34,1
Current tax receivables	0,1	0,1
Total current assets	106,2	111,3
TOTAL ASSETS	442,6	470,3

(€m)	2022FY	2023FY
Shareholders' Equity
Share capital	70,2	70,2
Legal reserves	14,0	14,0
Other reserves	38,2	37,7
Retained earnings	73,7	86,7
Treasury shares	(20,0)	(20,0)
Total shareholders' equity	176,2	188,7
Non-current liabilities
Non-current financial liabilities	-	100,4
Non-current leasing liabilities	22,6	17,5
Employee benefits	10,0	8,9
Provisions for risks and charges	15,1	17,9
Other non-current liabilities	0,3	0,3
Total non-current liabilities	48,0	145,0
Current liabilities
Trade payables	60,5	65,0
Other debt and current liabilities	38,5	48,9
Current financial liabilities	101,5	1,1
Current leasing liabilities	17,6	20,2
Current tax payables	0,4	1,4
Total current liabilities	218,4	136,6
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	442,6	470,3

2023YE Balance Sheet

1) Including long-term financial items and the rights of use for leasing introduced from 2019 with the application of IFRS 16

2) Net funds include employee termination indemnities, provision for risks and deferred taxes

Summary of 2023FY Cash Flow Statement

(€m)	4Q2022	4Q2023	FY2022	FY2023
Profit before income taxes	23,3	23,9	101,8	121,5
Depreciation, amortization and write-downs	11,4	13,0	47,2	47,3
Provisions and (releases of) personnel and other funds	2,5	5,9	2,8	7,0
Net financial (income)/expenses	0,7	1,5	1,9	4,3
Other non-cash items	0,9	0,0	1,1	0,4
Net operating CF before change in WC	38,7	44,3	154,8	180,4
Change in inventories	0,0	-	0,0	0,0
Change in trade receivables	10,8	5,3	1,3	(9,1)
Change in trade payables	17,2	28,2	9,1	4,5
Change in other assets	0,3	2,4	0,8	1,1
Change in other liabilities	(6,4)	15,4	1,8	3,6
Use of funds	(1,9)	(1,6)	(2,9)	(2,2)
Payment of employee benefits	(0,8)	(1,9)	(3,1)	(3,6)
Change in tax receivables and payables	(0,8)	(0,1)	(0,9)	(2,3)
Taxes paid	(1,0)	(25,5)	(23,9)	(25,5)
Net cash flow generated by operating activities	56,3	66,7	137,0	146,9
Investment in tangible assets	(28,1)	(27,0)	(68,9)	(47,4)
Disposals of tangible assets	0,0	-	0,0	-
Investment in intangible assets	(5,6)	(5,7)	(6,7)	(10,0)
Disposals of intangible assets	0,0	-	0,0	-
Change in other non-current assets	0,2	0,0	0,2	0,0
Change in non-current financial assets	(0,1)	-	-	-
Net cash flow generated by investment activities	(33,7)	(32,7)	(75,4)	(57,4)
(Decrease)/increase in medium/long-term loans	(32,0)	100,4	-	100,4
(Decrease)/increase in current financial liabilities	31,7	(105,1)	31,9	(101,4)
(Decrease)/increase in IFRS 16 financial liabilities	(2,1)	(4,6)	(9,0)	(13,4)
Change in current financial assets	0,0	0,5	(0,3)	0,1
Net Interest paid	(0,4)	(1,6)	(1,1)	(2,6)
Dividends paid	(0,2)	(0,2)	(65,2)	(73,8)
Net cash flow generated by financing activities	(3,0)	(10,6)	(43,7)	(90,7)
Change in cash and cash equivalent	19,6	23,4	17,9	(1,1)
Cash and cash equivalent (beginning of period)	15,6	10,7	17,2	35,2
Cash and cash equivalent (end of period)	35,2	34,1	35,2	34,1

Credit lines

• Amount: € 185m, of which € 143m Term loan (with bullet repayment at maturity) + € 42m Revolving
• Term Loan to be drawn as needed upon borrower's request
• Tenor: 3 years
• Interest: Euribor (0 floor) + 1,10%
• Commitment fee: 35% of the spread
• One-off fees: 27,5bps upfront fee; 7,5bps coordination fee
• Covenant: Net Debt / EBITDA ≤ 3,0x

Cash generation and available debt to finance development initiatives