Good afternoon. This is the Chorus Call Conference Operator. Welcome, and thank you for joining the INWIT Q3 2022 financial results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Fabio Ruffini, Head of Investor Relations. Please go ahead, sir. Good evening, everyone. Thank you for taking the time to join us. With me today is Diego Galli, INWIT General Manager. Before we begin, please allow me to draw your attention to the safe harbor statement on page two. Following some prepared remarks, we'll be happy to take your questions. Over to you, Diego. Thank you, Fabio. Welcome, everyone. It's a pleasure to speak with you today in my capacity as the general manager. Over the past 2.5 years, I had the opportunity to be part of an important industrial project, the first tower spin-off in Europe, with a business model enabling protection from macro volatility due to strong MSAs, and highly visible and diversified organic growth. INWIT is an enabler of digitalization, and we are confident about the opportunities ahead of us. Mobile data consumption continues to grow, creating capacity needs. 5G rollout is expanding. A technological leap that means more sites, more point of presence, more dedicated coverage for indoor and outdoor. We are an infrastructure partner to customers seeking efficiency in network deployment. Through sharing economics, we allow savings in costs and CapEx to operators. In the current context, this can be an opportunity, and it is confirmed, for example, by the demand we are seeing for new sites. Growth in digital infrastructure is evident, and we are well-positioned to capture it. Quite a few variables have changed since our business plan presentation in November 2020, both macro and industry specific. Overall, the context remains positive with supportive demand. As part of our regular cycle of planning, we intend to provide a strategic update to market in the first quarter of 2023. There is a clear opportunity to further develop our partnership role with operators and to drive another step up in new services. The execution of the business plan will be supported by a renewed board, as we can see on slide 4. Since 2015, our business has evolved in a significant way, and with it, INWIT shareholding and corporate governance. Following the AGM in October, we made a further step towards best practices. Today, our board is composed by a majority of independent directors and include representatives from the asset management industry, an industrial player, and infrastructure partner. To this, we have a business model with a diversified client base, two Tier one anchors, and the role of a neutral host in the market, with unchanged commitment to the execution of the business plan. The main results of Q3 on page five. The trajectory of financials in Q3 was solid. I would single out +9% organic revenue at this level for the third consecutive quarter, double-digit growth in EBITDA with margin expansion, +27% free cash flow, with leverage down to 5.4x. Site delivery has become less volatile. We deliver more than 100 sites as expected despite the summer month. This is a function of the improved internal site delivery process and progressively shorter permit timing. I would also like the 16% growth in all points of presence. New sites and new PoPs are expected to pick up in Q4 based on the current pipeline. Q3 was also a very good quarter in terms of lease cost efficiency, despite the effect of inflation and the growing perimeter. Lease renegotiation buyout transactions are up to 700, and allow us to be almost at the target we set ourselves for the year. The main component of our revenues are laid out in the next three pages, beginning with the anchor tenants on slide 6. Anchor points of presence are up 7%, stable as compared with Q2. Over the past year, we added more than 2,400 points of presence driven by MSA commitments and the need of TIM and Vodafone to roll out 5G in the most efficient way. Demand for new sites continue to be solid. On the co-tenancy grid front, the past two quarters discounted some operational fatigue. We consider this to be temporary, and based on the visibility we have today, we expect to see a better number starting already from Q4. Anchor MSAs are important part of our growth story, both in terms of commitment and preferred supplier role. They are win-win partnership with our clients, benefiting from the sharing economics. Turning to our other clients on page seven. Points of presence by other clients continue to be strong, up strongly, +16% year-on-year. This is one of the highest growth rate in the industry. The result of having added 1,700 new tenants over the past year. Fixed wireless access clients are confirmed as the main component of this growth. This segment of the market has reached about 10% of broadband connection and needs more mobile sites to add new clients. We expect fixed wireless access players to continue developing their network. The OLO category was strong as well, particularly within smart metering gateways for utility sector. Our infrastructure services expand and towers become more and more a node of the digital network. Moving to new services on page 8. New services were up 40% year-over-year. This is driven by dedicated coverage projects where DAS and repeaters work in synergies with towers. During 2022, the healthcare vertical has been the most interesting. We cover more than 40 hospitals with a tenancy ratio of two. There are more than 3,000 locations in Italy which need to be covered by 2026. Corporate headquarters, transportation hubs, entertainment venues, hospitals, stadiums, industrial sites and public administration buildings. Those solutions are an answer to a clear need for best quality connectivity indoor in a context of growing data use in locations with high traffic, and to enable advanced applications, something that Wi-Fi cannot deliver. There are also evident cybersecurity advantages with DAS. We are well positioned to capture this growth with Tier 1 anchor and a leading market position. Moving forward, we expect further pickup in new services. Moving to our P&L on page 9. We already touched upon the drivers of revenue growth, +9% in organic growth with all those clients up by more than 30%. INWIT has multiple growth drivers, and they have progressively been activated. For example, we have also been successful in providing additional technical services to clients, and all our prices have been very solid. Margins continue to expand with EBITDA after lease reaching 69% when excluding one-off severance costs booked in Q3. On the cost side, we are not seeing any unusual pressure. Lease cost efficiency goes on, and lease costs were contained, notwithstanding the growing asset base and the inflation linked in leasing contracts. As a reminder, our business model benefits from inflation since 1% inflation means more than EUR 5 million EBITDA after lease, and it is protected from energy costs since they are a pass-through. Current impact of inflation is limited since we are applying on revenues last year 1.9% average figure. As you know, this will be a material impact from 2023 onwards. Now on cash flow on slide ten. Recurrent free cash flow generation in the quarter was strong at more than EUR 120 million, up 26% year-on-year for a cash conversion ratio of 62%. This is a structural feature of our business model based on limited recurring CapEx and a neutral net working capital cycle and highly secured growth CapEx below the recurring free cash flow line. In line with guidance, we expect recurring free cash flow to accelerate further in Q4. Leverage came down to 5.4x on track to be further reduced into year-end. We progressively create balance sheet flexibility. In the second half of 2023, we expect leverage to fall below 5x. In terms of capital allocation, we share the framework with priorities for cash deployment within a leverage corridor of 5x to 6x. The application of the framework necessarily takes into account external factors such as financing conditions and market prices. In the current context, we need to be more cautious when we look at inorganic growth, and there are options available to us which are more organic CapEx and additional shareholder remuneration. It is fair to say that on relative basis, today, the attention is more on those rather than on M&A. 2022 guidance as well as the recently improved business plan guidance are confirmed. The figures you see in the page are based on inflation scenario of 6.5% in 2022, 1.9% in 2023. Higher inflation would mechanically add up to our run rate. INWIT can deliver highly secured organic growth, strong margin expansion and compelling shareholder returns. This culminates in more than EUR 700 million recurring cash flow in 2026. Zooming in on 2023, we are confident INWIT growth will accelerate further as compared with 2022. MSA commitments will step up with more sites. All volumes are more visible, and OLO will continue to develop. We will further expand certain verticals in dedicated coverage. On top of this, we will benefit from 2022 inflation, particularly on MSAs which don't have a cap. 2023 is set to be a year of double-digit growth with high degree of visibility. A few final remarks on page 12. The result of the first three quarters demonstrates that in 2022, we are beginning to reap the benefits of the industrial logic of today's INWIT. Italy is a market where there is the need to complete and improve mobile coverage and lags behind other European markets in terms of digitalization. In this context, INWIT has specific advantages in the form of the best assets in the market with a leading market share, strong MSAs, multiple sources of growth, clients and products, and technological expertise which position INWIT well for the future of the tower companies. Towers are evolving into a keystone of the digital ecosystem beyond the role as real estate or passive infrastructure. We are well positioned even in the current environment, where macro volatilities have been elevated and the telecom industry is looking at efficiency across the CapEx. We are confident to be able to thrive in this context with downside protection and growth opportunities, and look forward to updating you on our progress. With this, I thank you, and we are now ready for the Q&A session. Excuse me, this is the Chorus Call conference operator. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. We will pause for a moment as callers join the queue. The first question from the English conference call comes from Giorgio Tavolini with Intermonte. Please go ahead. Hi. Good evening, and thanks for taking my question. I was wondering if you can elaborate more on the delay or reduction in the 5G investments. If you can comment more on the impact from the higher CPI on your anchor tenant, TIM's lease. Thank you. Thanks, Giorgio. Yeah, we are aware of the rumors about slowing the 5G investments and the challenges that our customers have in this current environment. Though the MSA structure, for us, is very clear and it's supported by the clear framework. We do see demand for new sites actually very strong. It's actually more up to us to satisfy the demand as fast as possible. We do see our customers showing and pressuring us for new sites, as well as progressing on the new tenants on existing sites. In some cases with, as we said, some operational fatigue, which is more in terms of execution rather than strategic choice. Let me also say that, as we do see our mission is really to support the anchor tenants as well as all the customers in the market, supporting their network deployment to be efficient and effective. This is the mission of our company. In this context, where clearly the pressure on our customers is high, can also offer some additional opportunities for us to create additional opportunities, again, to support them to deploy in an efficient and effective manner through their network, also through optimization of OpEx and offload of CapEx. Many thanks. Sorry, I'm not sure I did reply entirely on your point related to the CPI. Again, on that one, the contractual clauses in the MSA is clear and straightforward, and we don't expect any contractual revision. Okay. Clear. Thank you. Welcome. The next question is from Andrew Lee with Goldman Sachs. Please go ahead. Yeah, good evening. Thanks for your comments, Diego. It's interesting that we've had two tower companies in one day basically step away largely from any interest in acquiring or in doing M&A within Europe on the tower front. Just wondered if you could maybe elaborate on your thinking as to why it's less attractive now that you mentioned financing, you know, maybe pricing as well as an issue and how we should then therefore think about how you balance. Yeah, a more cautious approach to gearing, which you mentioned, and shareholder returns versus organic CapEx. Appreciate that there's multiple strands to that question. Second question was hopefully much shorter and briefer, which is just on the land leases, that they were down 1% year-on-year in the second quarter, and obviously they're flat now. As you mentioned, inflation linkage kicks in. Have we seen a full quarter impact from the inflation linkage in the land leases this quarter, or should therefore, how should we think about land lease trends in Q4 and into 2023? Thank you. Yes. With regard to capital allocation, we confirm the overall framework. The point is about the application of the framework and the criteria we set as part of the framework. In the current context, how can I say? The application of the framework has to consider the fact that the cost of debt is significantly higher. For INWIT actually, the M&A would be, in 2023 actually, financed by the additional debt. This is one factor. That would be simply more expensive than before. The second element is looking at current valuation, and the valuation gap between public versus private makes the scenario more challenging than some time ago. The two considerations actually brings us to have a more cautious approach. That, I mean, clearly we will continue to monitor and assess, but that's the latitude to meet the criteria we set is clearly less. Let me also put in perspective the fact that we want. We are, and we want to explore further opportunities for inorganic growth in so-called inorganic. Let me say neither or additional investments in the local market. Opportunities to partner further with the anchor, so to accelerate on the land buyout. So there are opportunities which are compelling, where actually is at this stage the most of our focus. The overall balancing between shareholder remuneration and acceleration on investments will be driven again by a logical approach. I think clearly the ability of the management to identify additional investments with compelling returns, so significantly higher than cost of capital, will be clearly an important input for the decision. On ground leases, yeah. In Q3 we have seen actually a different trajectory and we have seen the impact of the inflation. Inflation on ground lease cost has been faster than on revenues because particularly in SA you may remember that. In the current year, inflation is 1.9%, and there is the mechanism whereby actually 2022 inflation will be fully reflected, but starting from first of January 2023. While on ground lease cost there is a progressive update on inflation based on the due date of the contract. The impact has been faster and will be completely offset starting in January when we will see the full impact, the full benefit on revenues. Having said that, the impact has been significant, and in Q4, actually we do expect a stabilization of ground lease cost. What we have seen in the last two quarters will stabilize in Q4. Next year, we will see clearly the dynamics, not only the continuous benefit of the efficiency initiatives, but also the impact of a grower base and the inflation. I think that overall ground lease cost will be to be assessed in combination of revenue growth. As far as efficiency targets, we are well in line, actually we're being a little bit faster. Last comment is actually to highlight probably the mix of intervention of actions, of transaction will change a little bit. We have run really a lot on the renegotiation initiatives, which will slow down a little bit in the next quarter, while gradually we will see more asset, more ground, more buyout coming through. Okay, thank you very much for the color. Welcome. The next question is from Roshan Ranjit with Deutsche Bank. Please go ahead. Good afternoon, everyone. Thank you for the questions. Just got two, please. Diego, going back to your comment earlier on about a pickup into Q4. I think you previously said, organic sites for the year should be around 500. Organic site adds, sorry, should be around 500. Are we still thinking around that figure, which implies quite a big and I guess coupled to that, previously we were thinking the anchor would accelerate their PoP adds, and I think we saw that slightly this quarter, but it seems to be that the OLOs have now slowed down. Is there anything going on there that will be useful to know? Second question, just related to the previous question, you highlighted a change in the shift of buyouts versus negotiations. I think the long-term target was around 20%, if I'm not mistaken. Is it possible to update us on that number, where you think percent of sites owned can now go? Thank you. Thanks, Roshan. Yes, starting from the first, the number of sites, yeah. It's confirmed for year-end at about 500. I was happy for the quarter. Last quarter, we delivered 110 sites. That is actually more than the double of last year. Last year in Q3, we delivered 50 sites only. Now we did 110. That is important step up. Last year in Q4, we delivered 170. Actually, there are all the conditions, and we do see the pipeline to reach the 500, which would mark a positive improvement compared to last year and will be also important to enter next year, where we do expect a further acceleration. With regard to the new tenants on existing sites. On OLO, we are on anchors. We are basically as stable in about 500, 550, about 450. There is potential to do more. We do see the different steps of the pipeline, a good number. The process to go through the pipeline is taking a little bit longer than expected due to the operational fatigue in the execution, in the operational activities. We do think that this can go a little bit up already starting from before. With regard to the other customers, with the OLO's fixed wireless MNOs and utilities. Actually, in the second quarter, we are very close to 500. That's a good number considering that still the contribution from MNOs is quite limited. We need to put into perspective that the potential business with Iliad does not come through. Actually this is a number which is mostly driven by fixed wireless access, which is very interesting. As it has been for the last quarter, but also complemented by these new kind of customers, which are the utilities, where the economics similar to fixed wireless access are picking up, and we do expect this to continue in the future. We think it's a good run rate. And we'll go better in Q4. We'll be higher in Q4. But the real potential and further opportunity here, as discussed at length in the past, is the resolution of the Iliad dispute. At that point in time, the OLOs will be better in number and clearly in value. The last point is about buyouts. Yes, let me say the aspirational target of 20% is still there. We are moving gradually to that relatively. Let me say not pushing too much. It's really. We don't wanna push, let me say, like that, because the market is very easy to heat up. We need to manage it carefully. Yeah, we intend to do a little bit more in the next quarter. Great. That's very helpful. Thank you. Welcome. The next question is from Jakob Bluestone with Credit Suisse. Please go ahead. Hi. Good afternoon. Thanks for taking the question. I just have one, please. I was just interested, I mean, when you talk about capital allocation, you mentioned M&A, as well as investments and, shareholder remuneration. What about debt buybacks? I think your bonds are trading at sort of 80 cents on the dollar, so buying back debt, you know, using other sources of liquidity could delever you. Is that something you would consider or is that not really on the radar? Yeah. Thanks, Jakob. Yes. The buyback is an option as part of the chapter of additional shareholder remuneration. Sorry. Now coming to your point. The debt buyback. We are assessing it. We are considering it. It's not particularly convenient in these days. It's an option we are considering, but it does not appear to be convenient. We need to consider the right level of the leverage, because anyway, we need to consider that we will keep on deleveraging significantly quickly, and we will be net cash positive starting by the end of 2023. That is another element to put in the equation. As we, I think, we said already in the past that I think we are in a situation where we are in the condition to assess the different options to calibrate them. We don't have any pressure in terms of timing. What is key is that if we keep on deleveraging, we are approaching the time when we will be net cash positive. Clearly we will monitor in the next continuously how the market conditions will evolve. Thank you. That's helpful. The next question is from Sam McHugh with BNP Exane. Please go ahead. Hi, Diego. Two quick questions. First, on interest costs. Euribor's up about 200 basis points in the last six months, and you have about EUR 600-700 million of floating debt. I think it's about EUR 13-15 million of extra kind of run rate interest. I was just interested if you could kind of outline how much of that will hit the cash flow this year. Is it kind of a EUR 2-3 million and then another EUR 10 million headwind next year? A bit of a detail around the timing of the credit facility payment. Secondly, on the ground leases, I think you said you're expecting to stabilize in 4Q. I was just wondering if you meant quarter-on-quarter, year-on-year, P&L lease costs, cash lease costs. What specifically were you talking about? Thanks very much. Yeah. Thanks, Sam. On interest costs, the bottom is about a couple of EUR 2 million in the next quarter, between EUR 2 million and EUR 3 million, and about EUR 10 million in 2023 based on the current rates. With regards to ground lease costs, yes, it was stabilization quarter-on-quarter. Thank you. All right. Thanks very much. The next question is from, Fabio Pavan with Mediobanca. Please go ahead. Yes, good evening, and thank you for taking my questions. Actually, if I may ask three very quick ones. First one is, when you will be opening your strategic update, we should expect also, an updated guidance to be shared with the community considering the board composition has changed, or is it just, kind of strategic update? Second question is, again, with, let's say focusing on the governance. Was wondering if, this new board members have managed to discuss about the implementation of the Remedies Directives, and if there is any news on that front. Finally, quick follow-up on the debt side. To the extent you don't have any need for, refinance, before 2025. Thank you very much. Yes. Thanks. Thanks, Fabio. Starting from the first one related to the strategic update is an update. The business plan targets are confirmed. The update will take into account the changes in the context, I mean inflation, interest rates, the 5G recovery fund, the Open Fiber project. The business plan is confirmed and will be updated in a context that we do see being positive. We remain positive about the overall scenario and the role we continue to play in supporting the operators developing their plans in an efficient and effective manner. That's with regards to the first question. The second question on the remedies. There are no specific updates. It's you know well the story. I think we have no specific update, but what just we can say is that we can. It's clearly we are an actor which has limited levers that can be played. But as stated already in the past, we think that it's rational to think that a solution will be found, a solution that will balance the interest of all parties involved. With regards to the last question, which is related to the debt. The first maturity is by 2025, so we don't have any short due date in short term. No, no obligation in the short term. Thank you very much. Thank you. Welcome. The next question is from Georgios Ierodiaconou with Citi. Please go ahead. Yes, good afternoon. I've got two questions, please. Both follow-ups from some of the previous questions. The first one is around, I think, Giorgio, at the beginning, talked about the relationship with the anchor tenants. I just have two questions on that. Firstly, on timing, whether you plan to perhaps engage with them to come up with perhaps a new framework agreement, before your update, in Q1 next year. Then secondly is just to understand what kind of extra services you are looking into adding as part of any discussions you have with them. Are we talking more about maybe adding some of their, you know, motorway, whatever other assets they had, which you acquired already from one of them? Is it more an idea of perhaps moving into active components of the network and having a more central role within the network strategy? My second question is just on your comment around leverage and more focus on shareholder returns and maybe acquisitions in Italy than anything else. Can I also ask whether you are at all thinking of maybe being more towards the very low end of the range given the market conditions, rather than more in the middle? I'm just curious if it's just the allocation or maybe you are thinking of being a bit more cautious on the actual leverage as well. Thank you. Yes. Thanks, George. In terms of relationship with our anchor tenants, there is a continuous commercial discussion, relationship. There is no plan, nothing about change of the framework agreement. It's a continuous discussion about the services which are continuously provided and additional opportunities. Clearly, as part of the planning cycle, our planning cycle, as well as their planning cycle, this conversation will be a little bit more frequent in the next month to bring us to the plan. Again, all this in the framework of the commitment which has been defined in the framework of our role of preferred supplier, which is clear, and keep on exploring opportunities to develop further business. Actually, this conversation goes across the spectrum you mentioned from, let me say, limited potential, transfer of assets. We think that the transaction we did with Vodafone on the high-return assets was a good example, and we would like to do more of those. It's a win-win approach where we can take assets and make them shared assets to benefits of both the anchor and us. For those we will try to do more of those. Also, for the medium long term, we are potentially thinking about, interested about extending our perimeter and extending our competencies as well. The evolution of the network towards Open RAN and the need of efficiency for the operators may help the industry to transition to a model whereby the passive infrastructure operators do a little bit more in the value chain. That one will be consistent, and we are happy to explore and considering it for an additional opportunity. With regard to leverage, it's, let me say, we said we set the corridors between 5 to 6. Clearly in terms of, there is a timing opportunity where a timing window actually, where yes, we may be closer to 5 or actually around 5 for a little bit longer than expected or originally planned. Particularly thinking again about the cost of additional capital, additional financing, and thinking about the fact that we will be net cash positive by the end of 2023. There may be a logical thinking where we can be closer to 5x for some quarters, and then re-leverage when maybe the market, the debt conditions will be better. That will be complemented by positive cash generation. Very clear. Thank you. Thank you. The next question is from Luigi Minerva with HSBC. Please go ahead. Yes. Good evening. Thanks for taking my two questions. You know, the first one is a follow-up on the capital structure and the capital allocation. Thank you, Diego, for clarifying that the framework is confirmed and also the leverage corridor. I presume that, you know, one thing that is different in current market conditions is that you wouldn't re-leverage up to pay a dividend or in a similar way as you wouldn't leverage up to fund M&A because of the debt market conditions. Eventually, I think, you know, there will come a time probably in early 2023, where you would have to give clear indications whether, you know, the extra cash flow will be distributed to shareholders or used for organic growth opportunities. I mean, the question is essentially, you know, given the limitations from the debt market, should we expect a clear guidance in early 2023 about whether the extra cash flow will go towards organic opportunities or shareholder distribution? The second question is simpler, and it's about the electromagnetic emissions legislation. I know it's very early days with the new government, but I was just wondering whether you've heard anything from the new counterparts in government on the topic. Thanks. Yes. Thanks, Luigi. Yeah, clearly the capital allocation will be a topic which will be discussed and presented in the strategic update in February. I think that today we have made, let me say, a little step in clarifying the direction and the preference in this stage as the relative preference has shifted. Clearly the relative weight, the relative interest for M&A seems clearly more cautious. That is what I would comment with regards to the first question. Sorry, the second question was on the EMF levy. Yeah, it's early days for the new government. The previous government, as you may remember, was very close with the commitment from the digital minister to change them, to list them by the end of August, but the government didn't have enough time to bring that to conclusion. As we all know, I think the lift would make sense, particularly in this historical phase where there is the need to accelerate investments in the recovery funds, the Next Generation EU funds context as well. The rationale is still valid. Let me say that in other fields we do see the government making some giving some direction for instance, for the, how do you say, prevailing, you know, the oil, the gas, like offshore drilling. We will see. We will see. We will keep on doing our job to keep this topic alive and to bring it to the attention of the government. Thank you so much. Welcome. The next question is from David Guarino with Green Street. Please go ahead. Thanks. Two questions from me also. The first one, with the rising cost of materials that are needed to support your CapEx plan, I was a bit surprised to see you guys maintain your longer term guidance. Does that mean you're reducing the amount of projects to offset those high costs, or are you just seeing less cost pressure maybe than we're seeing on our end? The second question is, you've been clear about this, I guess, for a few quarters now, but there's more measured pace of lease renegotiations or buyouts, just because of the concern that the market might overheat. Could you just elaborate a bit on how that overheating scenario might play out? Does that mean landlords, they start talking to each other when INWIT's active in the market? I just wanna try to under... You know, better understand what causes the prices you might pay to actually rise. Thanks. Thanks, David. With regards to the cost of material, we have seen a spike actually at the end of last year, beginning of this year on materials for new sites in particular. Then it came down a little bit. We overall have an impact on CapEx in a range of 5% of the overall CapEx envelope. We are facing some impact, but not, I would say, significant. The overall raw material prices, which are relevant for us, are more stable than a few quarters ago. With regards to the ground lease cost, yeah, the market, we have the benefit to be in the market where there are plenty of small landowners. Actually in the market where here and there also come some land aggregators. What is delicate is not bringing the market to pay higher multiples because actually, yes, then the market becomes quite transparent. It's really play it in a smart way where when finding deals which are, by the way, strategic sites for us and good multiples or with partners, with sellers which are, can we say, genuine partners more than, how can I say, speculators which may also then speculate on other deals. Yeah, I hope I did. Was it clear? Yeah. No, I think that's helpful. Appreciate it. Thank you. The next question is from Stefano Gamberini with Equita. Please go ahead, sir. Good afternoon, everybody. Diego Galli, congratulations for your new role as managing director of the company, and good luck. I have also two questions, if I may. Could you elaborate a little bit more about the new PoPs from our containers? New POP slowdown in the last two quarters. You expect to pick up next year, but you have a target of eleven, sorry, thousand new POPs by 2023, and this couldn't be reached probably. Could you give us an idea considering that now revenues are up 7%, if I'm not wrong, penalties for anchor tenants will start if they do not reach a certain level of revenues. What could be right now the level of new POPs they should install by 2023 in order to avoid penalties in the contract you have with them? The second question regarding in general, FWA. If I'm not wrong, the average revenue for an FWA was in the region of EUR 3,500 per POP versus the EUR 10,000 for the MNOs, clearly excluding the anchor tenants. Is this figure still working, or are you able to increase in the last quarters? Also, do you expect the same in the forthcoming quarters, the average spending or the average cost, sorry, for a new PoP from FWA, thanks to a series of services or some other improvement in the contracts, in order to reach the target you set for 2023, both of revenues and EBITDA. Thanks. Yeah. Thanks, Stefano. How do we say in Italy? And with regards to the first question, yes, KPIs have been tracking below the trajectory of the previous quarter and the target. The trends are there, it's a question of timing. So they are taking more time to get through. In the meantime, we compensated the lower KPIs with other sources of revenues, including other services. So let me take it also from an outside point of view that when the KPI is a little bit later, but we come to, we will end up to the other two sources of revenues which we have been able to develop in the meantime. So to confirm again that the pipeline and the demand that you have a plan are still supporting the plan target. It's just a question of aging and timing. And with regard to pixel bit access, yeah, the prices are still around that level. It's a price which is related to the electromagnetic space utilization. And let me say that in relative terms, it's really convenient for us and these total equipments which are quick to be installed, they take low space, and yes, prices are holding up and volume as well are high levels, so we do expect volume to be high also in the next year. The only feature exception to the average will be the OpenFiber roll-out and the OpenFiber project where actually the load is related to new sites as well. So actually the prices will be higher and to allow and to support the proper return of investment on the new site. Just a quick follow-up on this topic. You said that we expect an acceleration still there. The highlights FWA in the forthcoming years, does it mean at least 2 to 500 pops per quarter or 2,000 pops per year as FWA also in the forthcoming years? We think that on the allos, actually, yeah, we will stay at this level with the opportunity to do more as soon as also the MNOs will contribute. Thanks a lot. The next question is from Jerry Dellis with Jefferies. Please go ahead. Oh, yes, good evening. Thank you for taking my questions. First question, you mentioned earlier that it's inconvenient to look at buying back your debt, at least at the moment. I just wanted to try to understand why that might be. I mean, is it really the case that with your debt yielding 5.5%, you just simply see better ways of investing that capital, in which case there would possibly not be any situation in the foreseeable future where you would look to buy back your debt. And then my second question was in relation to the leverage corridor. You've obviously talked about 5 to 6 times in the past. I'm not exactly clear. Are you reconfirming that that 5 to 6 times leverage corridor won't change when you deliver your strategic review in Q1 next year? Thank you. No, thanks, Jerry. The first question allows me to be more clear, actually, because in 2022 is not generating net cash after the CapEx and dividend payments. We will be net positive starting by the end of 2023. This means that repaying debt requires additional debt to finance it. Then there is the arbitrage between the two is not as far as we ever said, it's not convenient. The second point about the corridor, yes, the policy still holds. We think that a policy between five-six times makes sense. That's the policy. It is confirmed. Clear. Thank you very much. Uh- The next question is from Fernando Cordero with Santander. Please go ahead. Hello. Good afternoon, and thanks for taking my only question. You have already discussed that the M&A approach today suffered considering rates and rate situation. I would like also to discuss at which extent you are also seeing or you are requesting, sorry, higher returns for the organic growth topics in that sense. Historically you have talked or you have discussed the 10% internal rate of return project and internal rate of return for the organic growth investments. Is that 10% still valid? Are you looking for higher returns considering the current situation? Thanks, Fernando. Actually, yes, we have a policy of minimum return of double digit IRR, and we keep it as a floor, honestly. We are not updating it. These are the investments with long time perspective, long time horizon. Yes, we do think that having the policy of a minimum of double digit return makes good sense. Okay. Very clear. Thanks, Diego. Welcome. The next question is a follow-up from Giorgio Tavolini with Intermonte. Please go ahead. I just have follow-up. I was wondering whether in the current environment, you are seeing a particular initiatives from your clients to reduce the energy consumption of their active equipment. We read about the Iliad which now turns off some equipment overnight, and if so, if you see scope to collaborate with them in providing support in these initiatives. In particular, if there is a clear relationship between energy costs and the current restrictive electromagnetic limits in Italy, in particular, if so, if you see this a good point to re-discuss the electromagnetic limits in Italy. Thank you. Yeah. Thanks, Giorgio. Yes, we are exploring options with the customer to support them in reducing the energy consumptions. So, we are trying to identify options, and we are thinking and working with them on those. With regards to the EMF and energy link, actually, no, we are not aware. Maybe we may follow up, but we are not aware of any direct link between the EMF limits and energy consumption. Many thanks. Welcome. Gentlemen, there are no more questions registered at this time. Thank you everybody for connecting. Goodbye. Ladies and gentlemen, thank you for joining. 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