Rai Way

Investor Presentation • Mar 16, 2023

2022FY Results Presentation

16 March 2023

Disclaimer

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

• Aldo Mancino, Chief Executive Officer
• Adalberto Pellegrino, Chief Financial Officer
• Giancarlo Benucci, Chief Corporate Development Officer

Another year of solid organic growth

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 2022

• Strong financial performance despite severe energy headwind
  • o Underlying top-line organic growth of ca. 6% supported by development activities and CPI; Third-party up double-digit
  • o Excluding the increase in energy bill, higher revenues flowed entirely to Adj. EBITDA (up 5,7%) thanks to firm cost control
  • o Development capex above €60m driven by refarming for RAI; Third-Party portion represented more than one third
  • o Recurring cash generation trending towards € 100m
• 27,45 €/cent dividend proposed to the AGM, equal to 100% pay-out and 4,9% dividend yield(1)
• RAI DTT network upgrade and roll-out of new regional MUXes substantially completed on time and budget
• Construction started for the first set of 5 Edge DCs, tendering started for 3 more Edge DCs; permit application for the hyperscale DC submitted to the relevant authorities; tender procedures for CDN project underway
• Key contract renewal, framework agreement with new entrant and start of 5G coverage in rural areas improve MNO performance; busy FWA market
• Further enhancement of Company's ESG profile through implementation of the Sustainability Plan
• Recovery from energy headwind in 2022 through CPI-link and cooldown in prices, with adjusted EBITDA growth rate expected in the mid-teens area
• Commitment to disciplined capital deployment; digital transition and evolving networks strengthen conviction on investment in new infrastructure

OPERATIONS

OUTLOOK

Rai Way broadcast network post-refarming

National DTT networks for Rai Regional networks

• T2-ready networks, MPEG4/HEVC; average capacity available: Max: ~22 Mbps (DVB-T) – Max: ~40 Mbps (DVB-T2)
• DVB-T2 capacity substantially fully allocated

Piemonte (II level network) Coverage*: >90% Occupancy: >80% # channels hosted: 18 Puglia & Basilicata

Lazio (II level network) Coverage*: >90% Occupancy: 100% # channels hosted: 19

Sicily (I + II level networks) Coverage*: >90% / >80% Occupancy: 100% # channels hosted: 38

Friuli Venezia Giulia Coverage*: >90% Occupancy: 100% # channels hosted: 18

Veneto Coverage*: >90% Occupancy: 100% # channels hosted: 15

Coverage*: >90% Occupancy: 100% # channels hosted: 15

DC & Edge: digitalization (and 5G) support strong outlook

Source: CBRE report elaborated for Rai Way; Dec2022 * Frankfurt, London, Amsterdam, Paris + Dublin

: the new digital infrastructure

Infra project Progress update

New infrastructure projects: expected cash profile

ILLUSTRATIVE PURPOSE ONLY

Update on ESG

2022FY Financial highlights

Mln Eur; % % YoY growth

• 1) Maintenance capex excluding component related to IFRS-16 leasing. Development capex include € 4,6 million related to fiber IRU, reported under IFRS-16 financial liabilities in the financial statements
• 2) Cash conversion = (Adj. EBITDA - Leases – Maintenance Capex) / (Adj. EBITDA – Leases). Leases estimated as sum of leasing right of use depreciation (excl. dismantling) + financial charges on leasing contracts

2022FY Results Presentation 11

Core Revenues

Mln Eur; % % YoY growth

Following the restatement of RAI revenues effective from 2H2021 (as part of the Refarming Agreement), for comparison purposes 2021 revenues from refarming activities (€ 12,0m) and Reclassified new services (€ 0,8m) are entirely represented as Fixed Consideration

• RAI Fixed Consideration up 6,1% (or 5,1% excluding € 2,0m one-off amount paid by RAI in 3Q22 to terminate a minor service related to an old radio transmission technology) driven by CPI escalator and full impact of refarming-related step-up (effective from 2H21)
• Slight reduction in New Services for RAI related to the withdrawal from a regional service in the context of refarming
• Excluding non-recurring items, Third-party revenues up 12% (+19% in 2H):
  • o rising contribution from new regional MUXes business
  • o substantially stable performance for other customers, with progressively lower pressure from MNOs offset by higher hospitality to other clients (mainly FWA operators and radio broadcasters)

Opex (excluding non-recurring)

Mln Eur; % % YoY growth

● Excluding non-recurring benefits and higher capitalization compared to 2021, stable underlying personnel cost

● Electricity bill up € 8,5m vs 2021

(€ +1,4m in 4Q) with rise in energy prices only partially mitigated by government measures (tax credits and cut in other components) and lower consumption (-13% vs 2021)

● Stable underlying trend for other cost items, supported by mitigating actions on discretionary spending

Eur Mln, %	4Q2021	4Q2022	% YoY	2021FY	2022FY	% YoY
Core Revenues	58,2	61,1	4,9%	229,9	245,4	6,7%
(1) Other Revenues & income	0,0	0,1		0,6	0,5
Adj. EBITDA % margin	33,0 56,6%	35,4 57,9%	7,3%	142,9 62,2%	151,0 61,5%	5,7%
Non recurring costs	-0,4	0,0		-0,4	0,0
EBITDA % margin	32,6 56,0%	35,4 57,9%	8,5%	142,6 62,0%	151,0 61,5%	5,9%
(2) D&A	-14,8	-11,4	-23,2%	-51,5	-47,2	-8,3%
Operating Profit (EBIT)	17,8	24,0	34,9%	91,1	103,8	14,0%
Net financial income (expenses)	-0,1	-0,7	684,9%	-1,2	-2,1	68,3%
Profit before Income taxes	17,7	23,3	31,6%	89,9	101,8	13,2%
Income Taxes % tax rate	-5,1 28,7%	-5,8 25,1%	15,0%	-24,5 27,3%	-28,1 27,6%	14,6%
Net Income	12,6	17,4	38,3%	65,4	73,7	12,7%

● 2022FY Net Income up by 12,7% at € 73,7m as a result of:

o Higher top-line

o Broadly stable profitability despite sharp increase in energy bill

o Lower D&A following the termination of the useful life of DVB-T equipment

2022FY recurring FCFE(6) at ca. € 93m

1) Maintenance capex excluding component related to IFRS-16 leasing; development capex include € 4,6 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 IFRS16 leasing contracts and interests on leasing contracts; excluding € 4,6 million related to fiber IRU, shown under Capex 5) Including current financial assets 6) 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

Net Debt bridge

Mln Eur Net Debt/ 1y rolling Adj. EBITDA

2022FY Results Presentation 15

2022 Recurring cash generation and dividend proposal

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 € 4,6 million related to fiber IRU, reported as IFRS in the financial statements
• 4) Dividend yield based on market closing price on 15/03/2023 (5,62 €/share)

5) Dividend proposal

Guidance 2023

● Outlook based on recent levels of power futures for 2023(1)

Adjusted EBITDA	Growth rate in the mid-teens area	- CPI-link - Rising contribution from regional refarming prices(1) - Lower energy and lower consumption - Start-up costs related to new infrastructure/services
Capex	• Maintenance capex broadly stable vs 2022 • Development capex broadly stable vs 2022, but with different rd RAI-3 Parties mix	- New infra roll-out (mainly edge & CDN) - Backbone upgrade completion - Residual refarming investments (both RAI & regional)

Strategy and ambitions confirmed in current environment

2022FY Results Presentation 18

Q&A session

Contacts

Appendix

Balance sheet

Mln Eur

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

Detailed summary of Income Statement

EBITDA	32,6	35,4	142,6	151,0
EBITDA margin	56,0%	57,9%	62,0%	61,5%
Non recurring costs	(0,4)	-	(0,4)	-
Adjusted EBITDA	33,0	35,4	142,9	151,0
Adjusted EBITDA margin	56,6%	57,9%	62,2%	61,5%

Summary of Balance Sheet

(€m)	2021FY	2022FY
Non current assets
Tangible assets	244,5	280,8
Rights of use for leasing	31,5	33,4
Intangible assets	17,2	19,5
Financial assets, holdings and other non-current assets	1,4	0,9
Deferred tax assets	3,0	1,8
Total non-current assets	297,7	336,4
Current assets
Inventories	0,8	0,8
Trade receivables	67,8	66,2
Other current receivables and assets	3,9	2,5
Current financial assets	0,5	1,5
Cash and cash equivalents	17,2	35,2
Current tax receivables	0,1	0,1
Total current assets	90,4	106,2
TOTAL ASSETS	388,0	442,6

(€m)	2021FY	2022FY
Shareholders' Equity
Share capital	70,2	70,2
Legal reserves	14,0	14,0
Other reserves	37,3	38,2
Retained earnings	64,4	73,7
Treasury shares	(20,0)	(20,0)
Total shareholders' equity	165,9	176,2
Non-current liabilities
Non-current financial liabilities	69,0	-
Non-current leasing liabilities	21,4	22,6
Employee benefits	12,3	10,0
Provisions for risks and charges	17,2	15,1
Other non-current liabilities	-	0,3
Total non-current liabilities	119,9	48,0
Current liabilities
Trade payables	51,7	60,5
Other debt and current liabilities	35,2	38,5
Current financial liabilities	0,2	101,5
Current leasing liabilities	15,1	17,6
Current tax payables	0,1	0,4
Total current liabilities	102,2	218,4
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	388,0	442,6

Summary of Cash Flow Statement

(€m)	4Q2021	4Q2022	FY2021	FY2022
Profit before income taxes	17,7	23,3	89,9	101,8
Depreciation, amortization and write-downs	13,8	11,4	50,5	47,2
Provisions and (releases of) personnel and other funds	4,3	2,5	5,2	2,8
Net financial (income)/expenses	0,0	0,7	1,0	1,9
Other non-cash items	0,2	0,9	0,3	1,1
Net operating CF before change in WC	36,1	38,7	146,9	154,8
Change in inventories	0,0	0,0	0,1	0,0
Change in trade receivables	8,8	10,8	(5,5)	1,3
Change in trade payables	9,0	17,2	6,1	9,1
Change in other assets	0,9	0,3	0,7	0,8
Change in other liabilities	(5,6)	(6,4)	(0,9)	1,8
Use of funds	(1,8)	(1,9)	(2,1)	(2,9)
Payment of employee benefits	(1,3)	(0,8)	(3,7)	(3,1)
Change in tax receivables and payables	(0,1)	(0,8)	(0,1)	(0,9)
Taxes paid	(2,4)	(1,0)	(24,2)	(23,9)
Net cash flow generated by operating activities	43,5	56,3	117,4	137,0
Investment in tangible assets	(26,3)	(28,1)	(79,4)	(68,9)
Disposals of tangible assets	0,0	0,0	0,0	0,0
Investment in intangible assets	(3,2)	(5,6)	(4,6)	(6,7)
Disposals of intangible assets	(0,0)	0,0	-	0,0
Change in other non-current assets	0,0	0,2	0,1	0,2
Change in holdings	0,5	-	0,5	-
Change in non-current financial assets	(0,0)	(0,1)	0,1	-
Business combination	-	-	(1,0)	-
Net cash flow generated by investment activities	(29,0)	(33,7)	(84,3)	(75,4)
(Decrease)/increase in medium/long-term loans	13,0	(32,0)	53,9	-
(Decrease)/increase in current financial liabilities	(15,9)	31,7	(0,7)	31,9
(Decrease)/increase in IFRS 16 financial liabilities	(0,7)	(2,1)	(8,4)	(9,0)
Change in current financial assets	0,1	0,0	0,1	(0,3)
Net Interest paid	(0,3)	(0,4)	(0,8)	(1,1)
Dividends paid	(0,0)	(0,2)	(64,0)	(65,2)
Net cash flow generated by financing activities	(3,9)	(3,0)	(19,9)	(43,7)
Change in cash and cash equivalent	10,7	19,6	13,2	17,9
Cash and cash equivalent (beginning of period)	6,5	15,6	4,1	17,2
Cash and cash equivalent (end of period)	17,2	35,2	17,2	35,2

2022FY Results Presentation 25