Business Perspective

In terms of business prospects, during 2022 the Group will continue to focus on executing organic growth (leveraging on its neutral operator character), integrating assets resulting from inorganic agreements already signed and seeking new inorganic opportunities to continue to remain a benchmark independent tower operator in Europe. Thus, as a result of the organic growth expected along with assets and companies acquired, and their progressive integration into the Group as a whole, the Group expects to increase various key indicators by at least 35% for the year ending on 31 December 2022.

The Group expects its revenues for the year ending 31 December 2022 to increase to approximately between EUR 3,470 million and EUR 3,500 million and its Adjusted EBITDA to increase to approximately between EUR 2,650 million and EUR 2,700 million, as a result of (i) the organic growth and (ii) the contribution of the transactions closed during 2021; such transactions being: the CK Hutchison Holdings Swedish transaction (which has been accounted for during approximately eleven months in 2021), the Iliad Poland Acquisition (which has been accounted for during approximately nine months in 2021), the T-Mobile Infra Acquisition (which has been accounted for during approximately seven months in 2021), the CK Hutchison Holdings Transaction with regards to Italy (which has been accounted for during approximately six months in 2021), the Polkomtel Acquisition (which has been accounted for during approximately five months and a half in 2021) and the Hivory Acquisition (which has been accounted for during approximately two months in 2021). The Group expects the CK Hutchison Holdings Pending Transaction with regards to the United Kingdom to close around mid 2022. Additionally, the Business Perspective reflects the contribution from new deals signed in 2021 and early 2022 and from expected disposals  as described in detail below.

The Group expects its Recurring Leveraged Free Cash Flow (RLFCF) for the year ending 31 December 2022 to be in the range of EUR 1,350 million to EUR 1,380 million (an approximately 35% increase from EUR 981 million in 2021).

As stated before, this  Business Perspective also reflects the contribution from new deals signed in 2021 and early 2022 (c.€1.5Bn investments in France + c.€0.4Bn other investments + c.€0.1Bn substitutive tax eligibility investment -improving RLFCF- + c.€0.3Bn own shares -improving RLFCF per share-) and expected cash-in from disposal  (subject to antitrust bodies approval).

Business Perspective 2025 unchanged

Additionally, the Group has previously issued long-term targets through 2025 that are considered valid by the Group as of the date of this Integrated Annual Report (the “2025 Targets”). The 2025 Targets are underpinned by highly visible financials, targeting a revenue CAGR of approximately 13% in the 2021 – 2025 period, an Adjusted EBITDA CAGR of approximately 15% for the same period and a RLFCF CAGR of approximately 21% for the same period. The Group also expects an increase in PoPs above 5% per annum in the 2021 – 2025 period.

The 2022 Profit Forecasts and the 2025 Targets are based on several assumptions. All of the assumptions relate to factors which are outside the full control of the Board of Directors. The 2022 Profit Forecasts have been compiled and prepared on a basis which is both comparable with the historical financial information and consistent with the Group’s accounting policies.