Good afternoon. This is the Chorus Call conference operator. Welcome, thank you for joining the Rai Way First Quarter 2023 Results Analyst 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 cell phone. At this time, I would like to turn the conference over to Mr. Giancarlo Benucci, Chief Corporate Development Officer of Rai Way. Please go ahead, sir. Thank you, operator, and good afternoon. Let me start thanking all of you for joining us today, and welcome to our First Quarter 2023 Results Presentation. Today, I have the pleasure of sharing the floor with Roberto Cecatto, the new CEO of Rai Way. Despite only 10 days at the helm, Roberto is obviously pleased to introduce himself, share his first impressions and priorities, as well as the highlights of the first quarter. Afterwards, Roberto will take you through the financial performance in more details to conclude with the usual Q&A session. Let me therefore hand the call over to Roberto. Please, Roberto, go ahead. Thanks, Giancarlo, good afternoon to all of you. My name is Cecatto, Roberto Cecatto, and it's indeed a real pleasure to be here with you today for my first call. As you know, since April 28, I've been appointed as the new CEO of Rai Way, and I take on this position together with the rest of the directors with great enthusiasm and sense of responsibility towards the shareholders and all stakeholders and towards the company itself and its teams, employees. Let me spend a few words regarding my person. I am born as a tech engineer, and now came back in a telco infrastructure company. Let me say it's the circle of life. For eight years, I was the director of the largest Rai business unit, let me say company inside the company, the TV production department, 4,000 people. Consider that is more than six times the people of Rai Way. Lastly, in the past two years, I was director of regional and foreign production and also the director of real estate department, EUR 1 billion of real estate assets, developing for the first time in Rai, a 10-year plan to revamp and increase their value and rationales. Rai Way is not a stranger to me because in the various roles held within the Rai Group. I have often and recently worked and cooperated with Rai Way, always appreciating it for its expertise and quality. I'm taking the helm of a solid company, constantly growing over time, cohesive with clear strategic lines. Thanks also to the stand of the former CEO, Aldo Mancino, my very good friend. I believe it's a promising future. Let me add that I decide to accept this role because, believe me, I trust in this company. To put it very simple, we are in front of a company with, first point, an outstanding infrastructure, not replicable and with clear features in term of location and uses. Second point, a core business referring to broadcasting and tower hosting, stable but with excellent visibility in the medium term and significant cash generation. Third point, cash generation, which moreover fuels a capital structure with very little debt and a large financial flexibility. Therefore, it looks reasonable to operate in two direction. On one end, we will work to maximize as much as possible the value and the cash generated by the traditional business, whether it is through the feature of existing contract, e.g., CPI link, deeper efficiencies, new business opportunities. I think about the possible rollout of DAB networks, hosting for 5G networks, on the streaming or transmission contribution services, also possible industrial opportunities to generate synergies. The second direction is to use the cash generated and financial flexibility, this is very important, to invest in value accretive diversification in new businesses on which Rai Way can have a competitive positioning. Rai Way, as I already mentioned, has already done a significant amount of work on this front. Obviously, the board and I, this is important to underline, just arrived, we will now go through all the growth initiatives. In general terms, it's fair to say one of the max trends to date among the most visible and concrete is the digital transition. Therefore, the plan to contribute to the creation of the infrastructure needed to enable digitalization processes and low latency services. Underlying low latency services because it's a factor of differentiation about other subjects, while exploiting synergies with the current portfolio and expertise and assets makes sense. This is also the feedback we are getting from investor and financial operators. It's not only a dream. Moreover, this infrastructure could also be leveraged to introduce new services for existing but also new media customers, for example, supporting more efficient content distribution on IP networks and platform. As said, we already started to review internally all these initiatives in term of opportunities and risk, from the way positioning to where we are in terms of rollout to future commercial setup. At the moment, there are no elements that differ from what the company has already shared with you in terms of rationale, timing, returns. The messages I would like to share with you today are full awareness of the development path undertaken by the company, and I think this is fair considering the result recorded by the company in recent years. Let me say, last but not least, this first quarter. The industrial interest gathered on new initiatives. That the focus mind of the new board on the time management must be more rapid and effective execution. In the execution, I will bring my own methods and expertise. I have only been here 10 days, and I have confidence in the work done so far by the company. In my experience, every change bring the opportunity to see things and organization in a different perspective. There will be great focus on speeding up execution and seeking possible additional areas of optimization and efficiency. The mission is to push forward initiatives with the best risk reward for the company and, where possible, accelerate the process to crystallize existing value and to create new value by acting on clear operational and financial levers. All this will fed into the elaboration of the new industrial plan, and we will be working in the coming months also in view the expiration of the current one that terminate on the 2023. Coming now on the first quarter performance. The start of the year confirmed the strong growth path we set for 2023, thus leading us, as we've seen others, to reiterate the full year guidance. I think this is very important. In particular, revenues are up to 12.8%, mainly as a result of indexation of inflation typical of our contracts, and the growing contribution of the new regional multiplex business. These drivers, together with the nice trend in hospitality to lever to the wireless access operator and radio broadcaster, pushed third party revenue growth to over 30%. As Adalberto will explain in detail below, despite the progressively declining energy price in the first part of the year, electricity costs still suffer from an unfavorable comparison with first quarter in 2022. Remember that when prices were contractually fixed at early 2021 levels, with the negative impact related to the price effect of over EUR 1.5 million in the quarter. Once energy price and other non-core effects are excluded, like level of personal capitalization on a prior year adjustment, OpEx show a manageable increase, especially when compared to ongoing inflationary dynamics, demonstrating a cost control that we intend to continue in the future. As a result, EBITDA is up 12.4%, with marginality at 65.5%. Percentual growth drives to 25% at net income level. Also consider the traditional lower level of investment on the first quarter, cash conversion and recurring cash generation were stronger at 97% and over EUR 10.30 million respectively. Net financial position, we include also the IFRS leasing addend, stands at under EUR 100 million. With this, I give the presentation to Adalberto to provide you with the details of the main items of our result. Please, Adalberto, go ahead. Thank you, Roberto, and good afternoon to everyone. Starting from slide six, as already mentioned, core revenues show a material growth in the first quarter of the year, coming out at EUR 76.8 million, an increase of almost 13% compared to 2022 levels. In more detail on the right component, the roughly 10% growth reflects the CPI indexation, the relevant index reached 11.5%, as you may recall, at the end of November 2022. Only partially offset by the termination of the medium wave radio service that you may recall from our previous touchpoint has been effective since the end of third quarter and resulted in a EUR 2 million one-off penalty cash in last year. On the other hand, acceleration in third parties revenues was even stronger, exceeding the record level of EUR 10 million per quarter, plus 34% quarter-on-quarter. Pushed by the full contribution from the new regional multiplex capacity sold to local television broadcaster player, on which we elaborated during the recent full year result call, and that started to be progressively flowing since March 2022. The increase was, of course, also pushed by the positive CPI link that affect both Rai and third parties' revenues. We had a good performance on the fixed wireless access operators and the radio broadcaster. Moving now to cost. Let's go to slide seven. The total cost in the first quarter amounted to EUR 23.7 million against EUR 20.6 million recorded in the first quarter, 2022. With other operating costs a touch above EUR 11 million in the three months, negatively affected by the already anticipated by Roberto tax comparison on the electricity bill. Let me elaborate a little bit more with the previous year figures still benefiting from the fixed price on the raw energy component agreed back in 2021, and effective, as you probably may recall, till the end of March 2022. Consider that the first quarter 2023 average prices per megawatt hour, including all the components, were equal to twice the first quarter 2022 level, with the tax credit still in place, partially counterbalanced by lower incentive on ancillary costs. The comparison according to the current energy unit prices, has been reversed in April and May, and joined the downward trend we have been seeing since late 2022. On top, we also enjoy a double-digit reduction in consumption and in the first quarter alone, brought about mainly by the brand new equipment installed and the new network configuration. Consider that if you strip out the impact of the electricity prices and other non-recurring items, other operating costs were up by 5% in the quarter, with around half of this increase related to initiatives eligible for public grants, confirming the tight cost control we were able to carry out in such a strong inflationary environment. The same applies to personnel costs that when excluding, without taking into consideration non-core impacts and lower capitalization compared to the first quarter 2022 value grew by just 3.6% quarter-on-quarter against the 12% reported. Moving to the profit and loss on slide eight. Our bottom line enjoy a healthy 25% growth at EUR 23.5 million, mainly reflecting a significantly higher EBITDA, lower D&A, following the early termination of the useful life of the old BBT equipment, and heavier financial charge because of rising interest rates, but with limited impact in absolute numbers, with the tax rate broadly in line with the previous year. Moving now to the cash generation. Last slide from my side, number nine. You can see how our debt slightly decreased in the first quarter, in coherence with the seasonal effect, down to EUR 92 million from the EUR 105 million recorded at the end of 2022. A s a result of, among others, the strong EBITDA contribution, the EUR 6 million CapEx deployed in line with the historically low level for the first quarter, out of which EUR 5 million was to development activities, the EUR 13.5 million net working capital absorption, and EUR 9.2 million of taxes. Delivering all in all a record recurring free cash flow to equity of roughly EUR 31 million in three months. That's all on my side. I leave the floor back to Roberto for the guidance. Please, Roberto. Excuse me. This is the operator. Media line is on mute. Okay. Thanks, Alberto. Thanks for your attention. In terms of expectation for the full year, as anticipated in the opening remarks, there are no changes from the guidance shared in mid-March. Specifically, in EBITDA level, the percentage growth is expected in the mid-teens area, supported by CPI link, ramp up of the contribution for regional refarming, and lower energy price compared to the last year, only partially offset by some negative comparison effect with 2022, which benefited from non-recurring items. On the energy assumption behind this guidance, compared to the call in March, the average raw energy price expectation are broadly stable around EUR 150 per MWh. Maybe in the future, little bit less, but usually we use these numbers. Tax credits have been extended to second quarter, although with a lower level of 10% compared to 35% of the first quarter because change the government help on this factor on the industry. On the other hand, incentives on the other price components have been largely reduced. The overall effect is slightly negative, but still leaving us in the range of the guidance communicated. No change also on CapEx, which remains substantially at last year level on both the development and maintenance components. Let me say that, before welcoming your question, just a brief closing remark from my side. Although the last one is mainly a marketing slide on the Rai Way equity story, I find quite impressive the strengths and opportunities, organic and externalized for value creation. There are the areas where we have to focus and work on, but also the ones supporting my enthusiasm and the optimism about the future. That's all on our side. We can now open the line for the Q&A session. Thank you so much. Thank you. This is Ashley, your 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. The first question is from Fabio Pavan with Mediobanca. Please go ahead. Yes, good evening. I would love to start with a welcome question for the CEO. May I ask you about your view on sector consolidation? Thank you very much. Good question. Let me say that I would like to avoid to repeat what is evident. Is really 10, 12 days, including some weekend, and I work in the weekend, that I was appointed in this role. I think is that a question like that is give me the chance to say that is professional to answer in the proper way. Let me say that independently from this specific case, in general, in the all infrastructure, potential asset consolidation is a level of industrial synergies and value creation. Consider that I only been here from 10 days, but the consolidation file is one that I first check, studied, and still analyze, because I think it's very, very important. I am focusing my attention on that, and I committed to share with the board as soon as possible. Consider that the board is a new board. There is a lot of new member of the board, and I think that it is very important to give them as soon as possible all the information that I found in the job done in a path of continuity with the past approach of the company. Let me add a very personal approach. I prefer to speak not so much, but to do facts. The next question is from Stefano Gambini with Equita SIM. Please go ahead. Good afternoon, everybody, welcome to Mr. Cecatto. I have a question clearly now regarding the figures. If I'm not wrong in my math, the overall costs, excluding the energy costs, so including the personnel costs, but excluding the energy costs that are not in the figures, in my calculation should be up 14%. Am I wrong or not? Why there was such increase of OpEx, while during 2022, sorry, you were able to keep all the costs under control. The second question is clearly what is the trend of OpEx that you expect for full year, excluding energy and one-offs. In order to understand if the path of OpEx will be double-digit full-year, and what is a trend for the following years, more or less in order to have a long-run trend. The second is regarding the CapEx. You confirm the CapEx while in the first quarter the figures were a little bit below our my estimate we can say. If you can update us on the remaining CapEx, where is the situation, what do you expect in terms of new edge computing that should be installed during 2023, and what is the remaining CapEx to finish the edge network that remains for 2024. Thanks a lot. Hi, Roberto. In term of cost, focusing on the cost in the first quarter, let's divide personnel from other OpEx. We have to remember we had a one-off last year in the personnel amounting to more or less EUR 500,000. This is something that give a benefit in Q1 because of the renewal of the contract in place with our employees. Of course, such one-off is not replicable in Q1 2023. Again, on the personnel, we had a reduction again of almost again EUR 500,000 coming from a lower level of the component of the cost that has been capitalized. These are the main impact, the main element that justify the variance in the personnel cost. Apart from this, as I mentioned before, the overall increase is not so significant. On the other operating costs, the increase in absolute number of the other operating costs, excluding, as you mentioned, the energy, the energy cost is EUR 500,000 in the quarter. Half of this half of this increase, sorry, is due to some initiatives that will have a benefit. Actually, they already have a positive impact in our other income line, so nothing without any impact on the EBITDA. The receivable increase is more or less EUR 250,000. Again, nothing of significant. In terms of overall figures that we expect to have by the end of the year, as you know, we focus on a guidance on the EBITDA, we're going not to give precise details on the figures of our OpEx. Generally speaking, we will have a slight increase of our OpEx because of different component related to the new configuration that we have in place, related to some as you may recall, last year we talked a lot about some initiatives that we launch at the need of the year in order to try to offset the increasing impact linked to the energy prices that finally at the end decrease. Anyway, we already put in place at the time some action that give an impact benefit on 2022 and some negative impact on 2023. Again, something extraordinary. Then, we expect to have some additional costs vis-a-vis last year due to the new initiatives that— on which we are working, and they will start to give a limited impact, but some additional costs will be recorded. This is the overall situation on our OpEx. Confirming in any way the guidance that we gave to the market with the full year results. The EBITDA is expected to significantly grow according to the guidance also mentioned by Roberto, commenting the relevant slide. Last question on CapEx. As you know, we finished the refarming process, so the most important project on which you will work in 2022 is finished. Now, we expect to have more or less the same level of development CapEx recorded in 2022. Same level should be reached also in 2023, but with a more important component linked to the new initiatives. To all the investments in relation, in particular, to the development of the initiative of the edge data center. The trend in the first quarter is limited, but we expect according to the plan which we're working on to have an increase in the coming quarters. Thank you. You're welcome. The next question is from Antonella Frongillo with Intesa Sanpaolo. Please go ahead. Good afternoon, and welcome to Mr. Cecatto also on from my side. I have a follow-up on the on your comment about the industrial plan that you mentioned that you are going to work on in the second half of this year. I read on the press that Rai is also going to elaborate its industrial plan, and also will have to renew its service contract with the government. My question is, overall process, could you have us understanding how you are going to work on your plan? Will it be in parallel with Rai’s work on the industrial plan? If there is any connection between your industrial plan and also the service contract, if the service contract is a precondition also for your plan? Hi, Antonella. let me say that broadly speaking, our plan will be independent from the process followed by Rai. Having said that, let's see what will be the requirements of the new service contract to Rai to understand if there will be some additional opportunities for our company, for Rai Way, for example, in terms of rollout of Rai Way networks or other opportunities. I mean, we have already done a lot of work with Rai in the context of their refarming. Let's see. Coming back to your question, the two processes are, let me say broadly, unrelated. Thank you. Next question is from Giorgio Tavolini with Intermonte. Please go ahead. Hi, good evening. Let me first congratulate you to Mr. Cecatto from my side on his new appointment. I was wondering, back to Antonella's question, what level of commitment you have by Rai new management. I suppose, on the data center opportunities since they will, of course, imply higher leverage for Rai Way and indirectly to Rai, especially given the current financial position of Rai Group. The second point, I was wondering if you can remind me the OpEx startup costs that you have in your guidance. You talk about the startup costs related to new infrastructure and services. I was wondering if you can elaborate more in order to help us to quantify the impact on these startup costs. That's all from my side. Thank you. As concerned the last question, the impact is in the range of EUR 1 million-EUR 2 million, so, nothing incredible for our overall figures. Then, on the other question, I leave the floor to Roberto to give you some clarification. Let me say that, you see the news agency just of this afternoon that was designated the new CEO of RAI, that and, the assembly. We let them, we'll close this role on the next Monday. Give us some time to permit to the new AD that I know very well to recover all the job done by the right structure for the semi-worked industrial plan, and to understand in the different independent and autonomous role of the two companies, what will be the eventual impact, interaction and so on. I think that there will be opportunity to find the best solution for the added value of the ROE position. This is my personal opinion. I usually am not so much optimistic, but I have this perception just now. Many thanks. Just a follow-up on the service contract. You were actually assuming. Sorry, I see some. I hear some noise. On the service contract with Rai, that you are going to renew back to the previous question. I was wondering if you see any risk regarding the potential effect on inflation, such as the one that has been caused by media sector. By media sector on its contract with the EI Towers for 3% cap or something like that. If it could also apply to the? You refer to a negotiation that probably was referred to the contract between RAI and the ministry. Anyway, as concern the contract we have in place with RAI, we already comment about about this in the last call. Clearly, what we can say is that we have the contract is very clear and stringent. Was renewed at the end of 2019 in the context of the agreement, as you may recall, we reached with RAI for the years 2021, 2028. Yes, of course, we know very well that now the CPI was high. If you look at the past, we also had in some years, negative CPI. The overall increase since the IPO is, if you take all the relevant index, a little bit more than 2%, something that makes sense. Finally, keep also in mind that with reference to our main customer, we offer not just hospitality, but a turnkey service providing the network, therefore the energy cost is not passed through and the headwind remains on our profit and loss. This is the situation now. Okay, many thanks. You're welcome. As a reminder, if you wish to register for a question, please press star and one on your telephone. Mr. Benucci, there are no more questions registered at this time. Okay. I will say thank you to all of you, and speak soon. Bye-bye. Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.