Rai Way — Investor Presentation 2016

May 11, 2016

1Q2016 Results Presentation

Rome, 11th May 2016

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 Participants

• •Stefano Ciccotti, Chief Executive Officer
• •Adalberto Pellegrino, Chief Financial Officer
• •Giancarlo Benucci, Head of Investor Relations

1Q2016 Financial Highlights

i i l i h l i h F H t n a n c a g g s
ln, % Eur M	1 Q 2 0 1 5	1 Q 2 0 1 6	% Yo Y
Co Re re ve nu es	2, 4 5	2, 5 7	0, 4 %
O t he Re r ve nu es	0, 2	0, 0
E B I T D A % in m ar g	2 6, 1 4 9, 7 %	2 7, 4 5 2, 0 %	% 5, 0
Ne t Inc om e	9, 3	1 0, 7	1 4, 9 %
Ca p ex	3, 0	2, 1
M in te a na nc e	3, 0	1, 7
% on c or e re ve nu es	% 5, 7	% 3, 2
lo t De ve p me n	0, 0	0, 5
( 1) Ca h io s co nv er s n	% 8 8, 6	% 9 3, 9
	2 0 1 5 Y E	Q 2 0 6 1 1
Ne t De b t Ne t De b t / 1 Y r l l ing A d j. E B I T D A o	4 1, 6 0, 3 8x	2 3, 0 0, 2 1x

• •1Q16 Core revenues at € 52,7m, up 0,4% vs. 1Q15
• •1Q16 EBITDA at € 27,4m, up 5,0% vs. 1Q15, with margin improvement driven by ongoing focus on cost optimization
• •1Q16 Net Income at € 10,7m, up 14,9% vs. 1Q15
• •Usual low capex level in 1Q (€ 2,1m, including € 0,5mdevelopment capex for new services to RAI)
• •Net Debt at € 23,0m, with Net Debt/1Y rolling Adj. EBITDA at 0,21x

Core Revenues

Eur Mln; %

• No impact from CPI
• •Increase in revenues from RAI driven by new services
• • Contribution from new initiatives to increase in coming quarters driven by completion of "Upgrade of contribution network" and finalization of newcontracts
• •Excluding non recurring impacts, Third Party revenues flat in 1Q
• • Growing tower rental services to Fixed Wireless Access Providers

Opex

Eur Mln; %

• Personnel costs down 2,3% vs. 1Q15 driven by higher capitalization and optimization of non core items •
• Other Operating costs declined by 7,1% vs. 1Q15, mainly driven by: •
• • Utilities, thanks to favorable comparison basis (benefit of new energy supply contract from 2H15) and oil price reduction
• • Other costs, benefiting from reduction of travel expenses and external costs

From Adjusted EBITDA to Net Income

	P & L
Eu r M ln, %	Q 2 0 1 1 5	Q 2 0 6 1 1	% Yo Y
E B I T D A % in m ar g	2 6, 1 4 9, % 7	2 4 7, 2, 0 % 5	0 % 5,
( 1) D & A	-1 1, 7	0, 6 -1
E B I T	4, 4 1	6, 8 1	6, % 1 7
ina ia F l e nc xp en se s	-0 5 ,	-0 6 ,
f i Pre Ta Pro t x	1 3, 9	1 6, 2	% 1 6, 6
Ta xe s % ta te x r a	-4 6 , 3 3, 0 %	-5 5 , 3 4, 0 %
Ne t In co m e E P S	9, 3 0, 0 3 4 2	1 0, 7 0, 0 3 9 3	1 4, 9 %

• •1Q16 EBITDA at € 27,4m, up 5,0% vs. 1Q15, with ^a margin of 52,0% (49,7% in 1Q15)
• •Declining trend of D&A (€ -1,1m vs. 1Q15) mainly resulting from reduction of Capex vs. "switch-off period"
• •1Q16 tax rate at 34,0%
• excluding the impact of deferred taxes, underlying equivalent tax rate at 32,1%
• •Net Income at € 10,7m, up 14,9% vs. 1Q15

Cash Flow generation

Net Debt/1y rolling Adj. EBITDA

Eur Mln; %

• •1Q16 cash generation of ca. € 18,7m
• •Capex level reflects typical distribution of maintenance activities throughout the year

Balance Sheet

Eur Mln

• Conservative capital structure with € 23,0mNet Debt as of March 2016:

0,21x Net Debt/1y-rolling Adj. EBITDA

2016 Outlook confirmed

•EBITDA

²⁰¹⁶ Adjusted EBITDA expected at ∼€ 110m

•Capex

²⁰¹⁶ Maintenance capex on revenues below 10%

Q & A session

Contacts

i U p c o m n g e e n v	t s
D t a e	E t e n v
2 8 / 0 / 2 0 6 7 1	6 l t 1 H 1 r e s u s
0 9 / 1 1 / 2 0 1 6	3 Q 1 6 l t r e s s u

Appendix

Detailed summary of Income Statement

( €m % ) ;	Q 1 1 5	Q 6 1 1
Co re rev en ue s	2. 4 5	2. 5 7
O t he r re ve nu es	0. 2	0. 0
f c Pu ha b les rc se o on sum a	( ) 0. 3	( ) 0. 3
Se ice ts rv co s	( 3. 0 ) 1	( 2. 0 ) 1
Pe l c ts rso nn e os	( 1 2. 4 )	( 1 2. 1 )
O t he ts r c os	( 0. 9 )	( 0. 9 )
Op ex	( ) 2 6. 6	( ) 2 5. 3
De ia t ion d a t iza t ion p rec an mo r	( 1 1. 7 )	( 1 0. 6 )
is ion Pro v s	0. 0	0. 0
Ne t Op t ing f i t era p ro	1 4. 4	1 6. 8
Ne t F ina inc nc e om e	( 0. 5 )	( 0. 6 )
f i for inc Pro t be tax e om e es	1 3. 9	1 6. 2
Inc tax om e es	( 4. 6 )	( 5. 5 )
f i t for t he Pro y ea r	9. 3	0. 1 7

E B I T D A	2 6. 1	2 7. 4
in E B I T D A m arg	% 4 9. 7	% 5 2. 0
No ing n r ec urr ex p en se s	0. 0	0. 0
A d j te d E B I T D A us	2 6. 1	2 7. 4
j in A d te d E B I T D A m us arg	% 4 9. 7	% 5 2. 0

Summary of Balance Sheet

( €m )	2 0 1 5 F Y	1 Q 2 0 1 6
No t a ts n c urr en sse
Ta i b le ts ng ass e	2 2 4. 5	2 1 6. 0
In ta i b le ts ng ass e	1. 8	1. 8
No t f ina ia l a ts n-c urr en nc sse	0. 5	0. 5
No t tax ts n-c urr en as se	4. 5	4. 2
To ta l no t a ts n-c urr en sse	2 3 1. 3	2 2 2. 5
Cu t a ts rre n sse
tor ies Inv en	0 1.	0 1.
Tra de iva b les re ce	7 0. 3	8 1. 5
O t he iva b les d c t a ts r re ce an urr en sse	4. 5	5. 7
Cu t f ina ia l a ts rre n nc sse	0. 3	0. 4
Ca h s	8. 9 7	8 2. 3
ts Tax as se	0. 5	0. 3
To ta l c t a ts urr en sse	1 5 5. 5	1 7 1. 3
T O T A L A S S E T S	3 8 6. 8	3 9 3. 8

( €m )	2 0 1 5 F Y	1 Q 2 0 1 6
No t a ts i Eq ty n c urr en sse u
S ha i ta l re ca p	7 0. 2	7 0. 2
l re Le g a ser ve s	8. 1	8. 1
O t he r re se rve s	3 7. 1	3 0 7.
Re ta ine d e ing arn s	4 3. 9	5 4. 6
To ta l e i ty q u	1 5 9. 3	1 6 9. 9
No t l ia b i l i t ies n-c urr en
t f ina ia l l ia b i l i t ies No n-c urr en nc	9 0. 6	7 5. 7
loy be f i Em ts p ee ne	2 0. 3	2 0. 3
is ion for is ks d c ha / l low Pro A v s r an rg es an ce s	8. 4 1	8. 3 1
O he l ia b i l i ies t t t r n on -cu rre n	0. 0	0. 0
l ia b i l i ies No t tax t n-c urr en	0. 0	0. 0
To ta l no t l ia b i l i t ies n-c urr en	1 2 9. 3	1 1 4. 3
Cu t l ia b i l i t ies rre n
ia Co l de b t mm erc	3 7. 2	3 4. 5
ia i i ies O t he de b t a d c t l b l t r n urr en	2 8. 3	4 3. 8
f ina ia ia i i ies Cu t l l b l t rre n nc	3 0. 2	2 9. 9
Tax l ia b i l i t ies	2. 5	1. 3
ta l c t l ia b i l i t ies To urr en	9 8. 3	0 9. 6 1
O Q S T T A L N E T E U I T Y A N D L I A B I L I T I E	3 8 6. 8	3 9 3. 8

Summary of Cash Flow Statement

( €m )	1Q 20 15	1Q 20 16
ing s b for e t Ea rn e ax es	13 .9	16 .2
De iat ion d a rt iza t ion pre c an mo	11 .7	10 .6
is ion Pro nd ot he v s a rs	0. 0	0. 6
Ne t f ina ial In nc co me	0.5	0.5
Ot he et ite r n on -m on ary ms	0. 0	0. 0
ing for in Ne t o rat C F b ha WC pe e e c ng e	26 .1	27 .9
C ha in inv to ies ng e en r	0. 0	0. 0
C ha in ts iva ble ng e ac co un rec e	( 21 .2 )	( .2 ) 11
in C ha ts ble ng e ac co un pa ya	( ) 0. 8	( ) 2.7
C ha in ot he ts ng e r a sse	( 1.1 )	( 1.3 )
C ha in ot he r l iab il it ies ng e	9. 6	11 .0
f fun ds Use o	( 0.1 )	( 0.1 )
f e f its Pa t o loy be ym en mp ee ne	( ) 0. 3	( ) 0. 6
in it/ iab il it ies C ha tax ed l ng e cr	( ) 0. 9	( ) 1.8
Ta id xe s p a	0. 0	0. 0
t o rat ing sh flo Ne pe ca w	11 .5	21 .3
in ibl Inv tm t ta ts es en ng e a sse	( 2.9 )	( 2.1 )
Sa le f ta ibl ts o ng e a sse	0. 0	0. 0
Inv tm t in int ibl ts es en an g e a sse	( 0. 0 )	( 0.1 )
Sa le f int ibl ts o an g e a sse	0. 0	0. 0
ina ial le h-o F ut nc as e c as	0. 0	0. 0
F ina ial le h- in nc as e c as	0. 0	0. 0
C ha in ot he nt ts ng e r n on -cu rre as se	0. 0	( 0. 0 )
C ha in t f ina ial ts ng e no n-c urr en nc as se	0. 0	0. 0
ive Int st d ere rec e	0. 0	0. 0
Inv t ing sh flo es ca w	( 2.9 )	( 2.1 )
( De ) / inc in lon te de bt cre as e rea se g- rm	25 .0	( 15 .0 )
( ) / inc in nt l iab il it ies De cre as e rea se cu rre	14 .7	( 0. 3 )
C ha in f ina ial nt ts ng e cu rre nc as se	0.5	( 0.1 )
id Int st ere pa	( ) 0. 4	( ) 0.5
D iv ide nd id s p a	0. 0	0. 0
ina ing sh flo F nc ca w	3 9. 8	( .8 ) 15
C ha in sh d c h e iva len t ng e ca an as qu	48 .3	3. 4
( f P iod ) Ca sh d c h e Be an as q g. o er	14 .7	7 8. 9
Ca sh d c h e ( End f P iod ) an as q o er	6 3. 0	8 2.3