Intred Investor Presentation: March 2024 FY2023 Conference call

FY2023

CONFERENCE CALL

MARCH18TH 2024

FY2023 - BEST EVER EBITDA MARGIN

OPERATING ACTIVITY

• Deployment of school tenders well on track
• Significant growth in the low

penetrated

provinces of Como,

Cremona, Lodi, Pavia, Sondrio and Varese, thanks to school tenders connections

• Multi-year framework agreement for the supply of fiber optical network to Vodafone Italy to connect its mobile network towers (€3 MN first batch of supply)
• Increased marketing activities to improve brand awareness

FINANCIAL RESULTS

• Turnover at € 50.1 MN, +10.0% YoY, driven by sales of fiber-opticconnections (+16% YoY)
• The churn rate on sales at 4.4%, well below the market benchmark
• Sound profitability with an EBITDA at € 22.5 MN, + 13.5% YoY. Best ever
  EBITDA margin at 44.6%
• EBIT at € 12.7 MN, + 4.2% YoY. EBIT Margin at 25.1%
• Net profit at € 8.2 MN, - 5.6% YoY due to increased financial costs

2

INFRATEL SCHOOL TENDERS -WHERE WE STAND

SCHOOL TENDER 1 (FEBRUARY 2021)

SCHOOL TENDER 2

(MAY 2022)

• Tender's value ~€ 40 MN
• 3,000 schools activated out of 4,000 (>75%)
• Activation period expected to last in Q4 2024
• 5 years of supply
• Activation value € 32 MN,VALUEinvoicedOF € 27 MN thereof € 6.3 MN accounted in 2023

MILLION

THE TENDER:

▪ Tender's value ~€ 19 MN

▪ 300 schools activated out€of401,200 (25%)

▪ Activation period expected to last in Q4 2026 ▪ 6 years of supply

▪ Activation value € 6.2 MN, invoiced €4.8 MN thereof € 2.3 MN accounted in 2023

DURATION

TIME:

€ 8.7MNYEARS

REVENUES

IN 2023

THE AWARD OF THE TENDERS IS HIGHLY STRATEGIC AND ACCELERATED INTRED EXPANSION IN LOMBARDY:

• WIDESPREAD COVERAGE OF ALL THE MUNICIPALITIES AND PROVINCES OF LOMBARDY
• ACCREDITATION BY ALL PUBLIC BODIES IN THE REGION
• WHOLESALE BUSINESS DEVELOPMENT

3

A NETWORK OVER 11,700KM, +24% YOY

Mkt share business

Brescia area > 15%

Bergamo area >7%

Strong potential to growth in all the other provinces

INTRED Network

INTRED BackBONE

LOMBARDY 10 MILLIONS INHABITANTS, 1/6 OF WHOLE ITALY

4

INVESTING TO SUPPORT GROWTH AND PENETRATION IN LOMBARDY

>€ 90MN IN 3 YEARS		PROPRIETARY NETWORK	€ /MN
		IRU

CAPEX TO BUILD, DEVELOP

AND STRENGTH THE NETWORK

• FY2023 investments at € 31 MN focused on FTTH network development in Lombardia area
• Development of Ultra Wideband
  connectivity, disinvesting from broadband connectivity by using the

proprietary network

• Development	of the fiber network
t h r ou g h IRU	contracts with major

TLC operators (Telecom, Fastweb, GTT, Retelit, Open Fiber)

28.327.5

14.9

11.0

4.9

3.5

2021

2022

2023

5

FINANCIALS

6

FY2023 HIGHLIGHTS - STRONG GROWTH CONTINUES

EBITDA 38.4% MARGIN

42.8% 43.1% 44,6%

	28.6%	26.4%
22.3%		25.1%
EBIT
MARGIN

REVENUES (€ MN)

			+10%
			50.1
		45.5
	40.4
35.4
			24.5
2020	2021	2022	2023

EBITDA (€ MN)

			+13.5%
			22.5
		19.9
	17.6
13.9
2020	2021	2022	2023

			EBIT (€ MN) +4.2%
							12.7
					12.2
			11.8
	8.1
								5.9
	2020	2021	2022	2023

NET PROFIT (€ MN)

NET FINANCIAL POSITION (€ MN)

			-5.6%
	8.6	8.7	8.2
6.1
			3.9
2020	2021	2022	2023

0.4 5.4 2022 2023

2020 2021

-11.5

-20.9

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FY2023 INCOME STATEMENT

€/000	2023	2022	YOY	YOY%
VALUE OF PRODUCTION	50,521	46,082	4,438	9.6%
Raw Materials & Stock	(1,835)	(1,641)	(194)	11.8%
Services	(8,040)	(6,692)	(1,348)	20.2%
Other operating costs	(10,019)	(9,965)	(54)	0.5%
Tot Operating Costs	(19,894)	(18,298)	(1,596)	8.7%
Personnel Costs	(8,098)	(7,932)	(165)	2.1%
EBITDA	22,530	19,853	2,677	13.5%
EBITDA Margin	44.6%	43.1%
Depreciation Amortisazion &Write Downs	(9,861)	(7,692)	(2,168)	28.2%
EBIT	12,669	12,160	509	4.2%
EBIT Margin	25.1%	26.4%
Net Financial Income (Charges)	(1,154)	17	(1,172)	n.a.
EBT	11,514	12,177	(663)	-5.4%
EBT Margin	22.8%	26.4%
Taxes	(3,323)	(3,503)	180	-5.1%
NET Income	8,192	8,675	(483)	-5.6%
Net Income Margin	16.2%	18.8%

• Turnover at € 50.1 million, + 10.0% YoY driven by recurring fees which account for about 85.2%
• Cost of services growth
  includes marketing activities to improve brand awarness
• Ebitda margin improved to 44.6%
• Increased financial costs linked to net debt growth to finance capex

8

REVENUES BREAKDOWN

VOICE & DATA

16.0%

LANDLINE
TELEPHONY	7.1%
BROADBAND	3.1%	BREAKDOWN
CONNETTIVITY	BY SERVICE	ULTRA
	4.4%
FWA CONNECTIVITY	60.8%	BROADBAND
		CONNETTIVITY
		2.7%

DATA CENTER		5.2%
ANCILLARY SERVICES		0.5%
	OTHER

PAVIA OTHERS
MANTOVA			MONZA
	0.9%
			3.0%
	1.3%				MILANO
	3.0%			12.1%
												COMO
										2.3%
BREAKDOWN		1.9%		LECCO
	1.9%		CREMONA
BY AREA	2.7%	VARESE

55.3%

BRESCIA

14.4%

BERGAMO

RESIDENTIAL

18.4%21.2% PUBLIC ADMINISTRATION

WHOLESALE 7.8% BREAKDOWN

BY

CUSTOMERS

52.7%

BUSINESS

9

EBITDA ANALYSIS: DEC'22 - DEC'23
							€ /M N
		(0.1)	(0.2)	(0.2)	(1.0)	(0.1)	22.9
	4.6
19.9
EBITDA 2022	INCREASE IN	OTHER REVENUES	STOCK&RAW	PERSONNEL	SERVICES COST	COST OF ACCESS	EBITDA 2023
	REVENUES		MATERIALS	COST
							10