Infrastrutture Wireless Italiane (INW) Status update summary

Market and Contract Context

• MSAs feature 8+8 year automatic renewals, 'All or Nothing' clauses, and change of control protection extending agreements to 2038, covering both existing and new towers/PoPs.

• Preferred supplier rights ensure right of first offer and last refusal for new tower builds, with anchors prohibited from outsourcing new sites 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 as part of the long-term agreement signed in 2020.

• MSAs are long-term, indivisible contracts, with competitive pricing due to operational efficiency.

Updated Financial Targets and Outlook

• 2026 revenue guidance set at €1.05–1.09 billion, with EBITDA margin around 90% and EBITDAAL margin about 72%.

• Recurring free cash flow forecasted at €550–590 million for 2026, with annual CapEx around €200 million.

• Ordinary dividend per share maintained at €0.55 for 2026, paid in 2027.

• Leverage (net debt/EBITDA) projected at 5.5x, with a structural target of 5x–6x.

• Medium-term outlook assumes low single-digit annual revenue growth, continued margin expansion, and potential upside from industry normalization and network densification.

Baseline Scenario and Market Assumptions

• Baseline outlook assumes a stagnant, conflictual market with no densification or normalization, and only committed MSA revenues included.

• Uncontracted recurring business has been paused or blocked, impacting 2026 revenues.

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

• Significant investment needed for network densification could unlock further opportunities.

• Business plan will be updated as market visibility improves, with a new plan expected in 2H26.