Rai Way

Investor Presentation • May 14, 2020

1Q2020 Results Presentation

Rome, 14 May 2020

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.

• Aldo Mancino, Chief Executive Officer
• Adalberto Pellegrino, Chief Financial Officer
• Giancarlo Benucci, Head of Corporate Development & IR

In the new operating environment caused by the COVID-19 outbreak:

• Safety of people protected, preserving business continuity and public service
• First quarter results confirmed solidity and resiliency of the business
• 2020-23 Industrial Plan approved
• Implementation of the refarming activities progressing, with a more gradual coverage extension throughout the year due to restrictions to mobility
• Guidance for the full year confirmed

1Q2020 Financial Highlights

Mln Eur; % % YoY growth

(1) Maintenance capex excluding component related to IFRS-16 leasing

(2) Cash conversion = (Adj. EBITDA – Maintenance Capex) / Adj. EBITDA. All figures before IFRS 16 impact

Core Revenues

Mln Eur; % % YoY growth

Mln Eur; %

Mln Eur; %

Eur Mln, %	1Q 2019	1Q 2020	% YoY
Core Revenues	55,0	55,6	1,0%
Other Revenues & income	0,1	0,0
Adj. EBITDA % margin	32,9 59,7%	33,1 59,6%	0,8%
Non recurring costs	0,0	0,0
EBITDA % margin	32,9 59,7%	33,1 59,6%	0,8%
D&A(1)	-10,4	-10,6	1,9%
Operating Profit (EBIT)	22,5	22,5	0,3%
Net financial income (expenses)	-0,4	-0,2	-46,1%
Profit before Income taxes	22,1	22,3	1,1%
Income Taxes % tax rate	-6,4 29,0%	-6,3 28,4%	-1,0%
Net Income	15,7	16,0	2,0%

● 1Q2020 Net Income up by 2,0% at €16,0m as a result of:

• o Higher top-line
• o Steady profitability
• o Higher D&A following rising investment activity
• o Lower financial expenses
• o Tax rate at 28,4%

Cash flow generation

Mln Eur; % Net Debt/ 1y rolling Adj. EBITDA

(3) P&L financial charges excluding interests on the employee benefit liability 9

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

In light of the operating evidences and based on the information available so far, impacts from COVID-19 emergency

on the company expected to be managed maintaining the full year outlook already disclosed on 12 March

ADJUSTED EBITDA

● Further organic growth of Adjusted EBITDA

CAPEX

• Maintenance capex as a percentage of core revenues expected substantially in line with the 2019 figures
• Rising Development capex, mainly related to refarming process

Q&A session

+39 06 331 73973 +39 06 331 74815

investor.relations@raiway.it

Date	Event
24/06/2020	Shareholders' Meeting
30/07/2020	1H20 results
12/11/2020	3Q20 results

Appendix

Detailed summary of Income Statement

(€m; %)	1Q19	1Q20
Core revenues	55,0	55,6
Other revenues and income	0,1	0,0
Purchase of consumables	(0,3)	(0,2)
Cost of services	(9,5)	(9,7)
Personnel costs	(11,9)	(11,9)
Other costs	(0,5)	(0,6)
Opex	(22,2)	(22,5)
Depreciation, amortization and write-downs	(10,4)	(10,6)
Provisions	0,0	0,0
Operating profit (EBIT)	22,5	22,5
Net financial income (expenses)	(0,4)	(0,2)
Profit before income taxes	22,1	22,3
Income taxes	(6,4)	(6,3)
Net Income	15,7	16,0

EBITDA	32,9	33,1
EBITDA margin	59,7%	59,6%
Non recurring costs	0,0	0,0
Adjusted EBITDA	32,9	33,1
Adjusted EBITDA margin	59,7%	59,6%

(€m)	2019FY	1Q2020	(€m)	2019FY	1Q2020
Non current assets			Shareholders' Equity
Tangible assets	177,6	178,5	Share capital	70,2	70,2
Rights of use for leasing	36,2	35,3	Legal reserves	14,0	14,0
Intangible assets	14,3	13,7	Other reserves	37,1	37,1
Financial assets, holdings and other non-current assets	1,3	1,3
Deferred tax assets	2,7	2,8	Retained earnings	62,9	78,9
Total non-current assets	232,1	231,6	Total shareholders' equity	184,2	200,2
Current assets			Non-current liabilities
Inventories	0,9	0,9	Non-current financial liabilities	0,3	0,3
Trade receivables	74,8	89,2	Non-current leasing liabilities	26,3	24,8
Other current receivables and assets	5,0	7,0	Employee benefits	14,4	14,4
Current financial assets	0,3	0,3	Provisions for risks and charges	15,9	16,1
Cash and cash equivalents	30,2	37,9
Current tax receivables	0,1	0,1	Other non-current liabilities	0,0	0,0
Total current assets	111,2	135,4	Deferred tax liabilities	0,0	0,0
TOTAL ASSETS	343,3	367,0	Total non-current liabilities	56,9	55,6

26,3	24,8
14,4	14,4
15,9	16,1
0,0	0,0
0,0	0,0
56,9	55,6
54,3	47,8
34,1	46,2
0,2	0,2
13,3	15,5
0,4	1,5
102,3	111,2
343,3	367,0

Summary of Cash Flow Statement