Infrastrutture Wireless Italiane (INW) Status update summary

Market and Contract Context

• MSAs are long-term, indivisible contracts with 8+8 year renewal cycles, extended to 2038 after a 2022 change of control, and include an 'All or Nothing' clause and change of control protection.

• Preferred supplier rights grant right of first offer and last refusal for new towers, ensuring competitive pricing and operational efficiency; anchors are prohibited from outsourcing new site construction without offering a last call.

• Inflation is fully CPI-linked with a floor at zero and no cap, averaging 2% over 10 years and 2.9% over the last five.

• Over €10 billion invested in tower acquisitions underpins the long-term agreements.

Updated 2026 Guidance and Financial Outlook

• 2026 revenue guidance set at €1.05–1.09 billion, reflecting market deterioration, strained tenant relationships, and industry headwinds.

• EBITDA margin expected at about 90%, with EBITDAAL margin around 72%.

• Recurring free cash flow forecasted at €550–590 million, with dividend per share at least €0.55 and leverage at 5.5x.

• 2025 guidance remains unchanged; medium-term outlook projects low single-digit annual revenue growth, continued margin expansion, and annual CapEx of €200 million.

• Dividend sustainability is prioritized, with leverage target confirmed below 6.0x.

Baseline Scenario and Market Assumptions

• Baseline outlook assumes a stagnant, conflictual market with no densification or digital infrastructure expansion.

• Guidance includes only committed MSA revenues, excluding potential upsides from improved relationships.

• Some recurring, but uncontracted, business has been paused or blocked, impacting 2026 revenues.

• Guidance factors in possible legal escalation and ongoing uncertainty in customer negotiations.

• Baseline scenario delivers modest revenue growth, margin expansion, and sustainable dividends.