Input

EUR/'000

General

Currency EUR

Days Year 365

Ires 24.0%

Irap 3.5%

Deal Data

Price Paid (Eur/'000) 10,547

Assets Fair Value

Fixed Tangible - Fair Value (Eur/'000) 8,750 For other balance sheet items, with the excepti

Brand

Growth rate (1.0%)

Royalty rate 5.0%

Tax useful life (years) 18

Remaining useful life (years) 10

Customer Relationship

Churn Rate 10.0%

Ricavi derivanti dalla Customer Relationship 25.0%

nce sheet items, with the exception of intangibles, consider the Book Value representative of the Fair Value
BP - Target
EUR/'000

P&L
EUR/'000 2020 2021 2022 2023 2024
Actual Plan Plan Plan Plan
Revenues 11,713 12,650 13,288 13,817 14,221
Raw Materials (3,000.0) (3,240.0) (3,403.3) (3,538.8) (3,642.2)
Gross Margin 8,713.1 9,410.2 9,884.4 10,277.9 10,578.4
Service Cost (2,550.0) (2,500.0) (2,580.0) (2,550.0) (2,578.0)
Other Fixed Costs (2,700.0) (2,700.0) (2,800.0) (3,000.0) (3,200.0)
EBITDA 3,463.1 4,210.2 4,504.4 4,727.9 4,800.4
EBITDA margin 29.6% 33.3% 33.9% 34.2% 33.8%
D&A (2,500.0) (2,500.0) (2,500.0) (2,500.0) (2,500.0)
EBIT 963.1 1,710.2 2,004.4 2,227.9 2,300.4
EBIT margin 8.2% 13.5% 15.1% 16.1% 16.2%
Financial Expenses (330.0) (330.0) (330.0) (330.0) (330.0)
EBT 633.1 1,380.2 1,674.4 1,897.9 1,970.4
Taxes (174.1) (379.5) (460.5) (521.9) (541.9)

Net Income 459.0 1,000.6 1,213.9 1,376.0 1,428.5

Balance Sheet
EUR/'000 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024
Actual Plan Plan Plan Plan
Fixed Tangible Assets 8,500 8,500 8,500 8,500 8,500
Intangible Assets 2,000 2,000 2,000 2,000 2,000
Financial Assets 1,500 1,500 1,500 1,500 1,500
Fixed Assets 12,000 12,000 12,000 12,000 12,000

Account Receivables 1,870 2,020 2,170 2,320 2,470

Other Receivables 1,415 1,415 1,415 1,415 1,415
Account Payables (2,900) (3,000) (3,100) (3,150) (3,200)
Other Payables (1,586) (1,586) (1,586) (1,586) (1,586)
Net Working Capital (1,200) (1,150) (1,100) (1,000) (900)
TFR (506) (534) (563) (592) (621)
Other Funds (51) (51) (51) (51) (51)
Funds (557) (585) (614) (642) (671)

Net Invested Capital 10,243 10,265 10,286 10,357 10,428

Share Capital 4,000 4,000 4,000 4,000 4,000
Retained Earnings 100 559 1,560 2,774 4,150
Net Income 459 1,001 1,214 1,376 1,429
Equity 4,559 5,560 6,774 8,150 9,578
Financial Debt 7,000 6,000 5,000 4,000 3,000
Cash (1,316) (1,295) (1,487) (1,792) (2,150)
Net Financial Position 5,684 4,705 3,513 2,208 850
Sources 10,243 10,265 10,286 10,357 10,428
check - - - -

Cash flow
EUR/'000 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024
Actual Plan Plan Plan Plan

Cash BoP 1,316.0 1,294.5 1,487.4 1,792.3

EBITDA 4,210.2 4,504.4 4,727.9 4,800.4

Taxes (379.5) (460.5) (521.9) (541.9)

Delta Account Receivables (150.0) (150.0) (150.0) (150.0)

Delta Account Payables 100.0 100.0 50.0 50.0
Delta Other Receivables - - - -
Delta Other Payables - - - -
Delta NWC (50.0) (50.0) (100.0) (100.0)
Delta Funds 27.9 28.9 28.9 28.9
Net Operating Cash Flow 3,808.6 4,022.9 4,134.9 4,187.4

CAPEX (2,500.0) (2,500.0) (2,500.0) (2,500.0)

Net Cash Flow from Investing Activities 1,308.6 1,522.9 1,634.9 1,687.4

Delta Shareholders' Equity - - - -

Delta Financial Debt (1,000.0) (1,000.0) (1,000.0) (1,000.0)
Financial Expenses (330.0) (330.0) (330.0) (330.0)
Net Cash from Financing Activities (1,330.0) (1,330.0) (1,330.0) (1,330.0)

Change in Cash (21.4) 192.9 304.9 357.4

Cash EoP 1,316.0 1,294.5 1,487.4 1,792.3 2,149.7

 2025
Plan
14,221
(3,642.2)
10,578.4
(2,570.0)
(3,200.0)
4,808.4
33.8%
(2,500.0)
2,308.4
16.2%
(330.0)
1,978.4
(544.1)

1,434.3

12/31/2025
Plan
8,500
2,000
1,500
12,000

2,470
1,415
(3,250)
(1,586)
(950)
(650)
(51)
(700)

10,349
4,000
5,578
1,434
11,012
2,000
(2,663)
(663)
10,349
-
12/31/2025
Plan

2,149.7

4,808.4
(544.1)

-
50.0
-
-
50.0
28.9
4,343.2

(2,500.0)
1,843.2

-
(1,000.0)
(330.0)
(1,330.0)

513.2

2,662.9
WACC

Target
Input
Rf 1.5%
Bunlev 0.78
D/E 0.39
MRP 4.7%
Tax Rate 24.0%
Size Premium 4.3%
ICR Spread 1.6%

Stand alone - Target

Cost of Equity (Ke)
Risk free rate 1.5%
Beta unlevered 0.78
D/E 0.39
Beta relevered 1.01
Tax rate Beta relevered 24.0%
Market risk premium 4.7%
Size Premium 4.3%
Ke 10.6%

Cost of Debt (Kd)

Kd before tax 3.1%
Kd Tax rate 24.0%
Kd after tax 2.3%

Financial Structure
Weight of Equity 72.0%
Weight of Debt 28.0%

WACC 8.3%
Recap
EUR/'000

Balance Sheet NBV FV post PPA

EUR/000 31/12/2020 FV Adjustments 31/12/2020

Tangible assets 8,500 250 8,750

Financial assets 1,500 - 1,500
Intangible assets 2,000 6,446 8,446
Brand 2,000 1,318 3,318
Customer relationships 1,005 1,005
Hypothetical Goodwill 4,123 4,123
Net Working Capital (1,200) - (1,200)
Account Receivables 1,870 - 1,870
Other Receivables 1,415 - 1,415
Account Payables (2,900) - (2,900)
Other Payables (1,586) - (1,586)
(Funds) (557) - (557)
TFR (506) - (506)
Other Funds (51) - (51)
Deferred Tax Assets (708) (708)

Net Invested Capital 10,243 5,988 16,231

Equity 4,559 5,988 10,547

Net Financial Position 5,684 - 5,684
Sources 10,243 5,988 16,231

Purchase Price Allocation Analysis

Price Paid 10,547
Book Value of Equity 4,559
Goodwill to be allocated 5,988
Allocated Excess Purchase Price (Total adjustment) 2,574
Tax rate 27.5%
Deferred Tax Asset / (Liabilities) (708)
Residual Goodwill/(Badwill) 4,123
Brand
EUR/'000

Assumptions
WACC 8.3%
Intangible Spread 3.9%
Cost of Intangible Capital 12.2%
Growth rate (starting from 2026) -1.0%
Tax Rate (IRES + IRAP) 27.50%
Royalty rate 5.00%
Tax life (year) 18
Remaining useful life (year) 10

Year 2021 2022 2023 2024

EUR/'000 BP BP BP BP
Months 12 12 12 12

Revenues 12,650.2 13,287.7 13,816.6 14,220.6

Royalty savings 632.5 664.4 690.8 711.0
(Tax) (173.9) (182.7) (190.0) (195.5)
Net Cash Flow (CF) 458.6 481.7 500.9 515.5
Discount period 0.50 1.50 2.50 3.50
Discount factor 0.94 0.84 0.75 0.67
Present Value of Net CF 432.9 405.1 375.4 344.3

Progressive Present Value of Net CF 432.9 838.0 1,213.4 1,557.7

Present Value of Cum. Net CF 2,934.0

TAB Factor 1.1
Fair Value of Brand 3,318.1

TAB Factor calculation RFR

RUL 18.0
Cost of Capital for Intangible 12.2%
Tax Rate 27.5%
PV(DR,RUL,-1) 7.2
PV(DR,RUL,-1)*(1+DR)^0.5 7.6

TAB Factor 1.1

 2025 2026 2027 2028 2029 2030
BP BP BP BP BP BP
12 12 12 12 12 12

14,220.6 14,078.4 13,937.6 13,798.2 13,660.2 13,523.6

711.0 703.9 696.9 689.9 683.0 676.2
(195.5) (193.6) (191.6) (189.7) (187.8) (186.0)
515.5 510.3 505.2 500.2 495.2 490.2
4.50 5.50 6.50 7.50 8.50 9.50
0.60 0.53 0.47 0.42 0.38 0.33
306.8 270.6 238.7 210.6 185.8 163.9

1,864.4 2,135.0 2,373.8 2,584.3 2,770.1 2,934.0

Brand
EUR/'000

OK!
a b c
Contributory Assets Book Value Fair Value Return
EUR/'000
Tangible assets 8,500 8,750 3.1%
Financial assets 1,500 1,500 10.6%
Intangible Asset 2,000 3,318 12.2%
Brand 2,000 3,318
Net Working Capital (1,200) (1,200) 1.5%
Account Receivables 1,870 1,870
Other Receivables 1,415 1,415
Account Payables (2,900) (2,900)
Other Payables (1,586) (1,586)
(Funds) (557) (557) 1.5%
TFR (506) (506)
Other Funds (51) (51)

Net Invested Capital 10,243 11,811

OK! OK!
Return On (Contributory assets)
Revenues (business plan average)
d=c*b e = d / REV
Remuner. Remuner. (%) Assumptions
270 2.0% Kd pre-tax
159 1.2% Ke
406 3.0% Cost of Intangibles

(18) (0.1%) Risk-free rate

(8) (0.1%) Risk-free rate

5.9% f = sum(d)
13,639 REV
Customer Relationship
EUR/'000

OK!

Assumptions
Churn rate 10.0%
Ricavi associati alla Customer Relationship 25.0%
Useful life 9.5
WACC 8.3%
Intangible spread 3.9%
CoC Intangible (%) 12.2%
Tax rate 28%

Customer Relationship - MEEM 2021

EUR/'000
Revenues 2,928
Survivor curve (Linear) 90%
Survivor curve (Exponential) 95%
Adjusted other revenues 2,778
EBIT Margin 13.5%
EBIT other revenues 376

(CAC as % of revenues) 5.9%

(Contributory Asset Charge) (165)

Cash Flow referred to Customer Relationship (CFC) 211

(Taxes) (58)
Customer Relationship Cash Flow 153
Discounting period 0.50
Present Value Factor 0.94
Present Value CRCF 144

Present Value of Cum. Net Cash flow 862

Tax useful life (year) 13.0
Amortisation tax shield factor 1.17
Fair Value of Customer Relationship 1,005

Useful life Calculation

Customer Relationship Cash Flow 144
Cumulated Customer Relationship Cash Flow 144
Cumulated Customer Relationship Cash Flow on total % 16%
Rule of 90% 95% 1
Population death in 10 years

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928
80% 70% 60% 50% 40% 30% 20% 10% 0% 0%
85% 77% 69% 62% 56% 50% 45% 41% 37% 33%
2,500 2,250 2,025 1,823 1,640 1,476 1,329 1,196 1,076 969
15.1% 16.1% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2%
377 363 328 296 266 240 216 194 175 157

5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9%
(148) (133) (120) (108) (97) (87) (79) (71) (64) (57)

229 230 208 188 169 152 137 123 111 100
(63) (63) (57) (52) (46) (42) (38) (34) (31) (27)
166 166 151 136 123 110 99 89 80 72
1.50 2.50 3.50 4.50 5.50 6.50 7.50 8.50 9.50 10.50
0.84 0.75 0.67 0.60 0.53 0.47 0.42 0.38 0.33 0.30
140 125 101 81 65 52 42 34 27 22

140 125 101 81 65 52 42 34 27 22

284 409 509 590 655 707 749 783 810 831
31% 45% 55% 64% 71% 77% 82% 85% 88% 90%
1 1 1 1 1 1 1 1 1 1
2032 2033 2034 2035 2036 2037 2038 2039 2040 2041

2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928
0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
30% 27% 24% 22% 20% 18% 16% 14% 13% 12%
872 785 706 636 572 515 463 417 375 338
16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2%
142 127 115 103 93 84 75 68 61 55

5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9%
(52) (46) (42) (38) (34) (31) (27) (25) (22) (20)

90 81 73 66 59 53 48 43 39 35
(25) (22) (20) (18) (16) (15) (13) (12) (11) (10)
65 59 53 47 43 38 35 31 28 25
11.50 12.50 13.50 14.50 15.50 16.50 17.50 18.50 19.50 20.50
0.27 0.24 0.21 0.19 0.17 0.15 0.13 0.12 0.11 0.09
17 14 11 9 7 6 5 4 3 2

17 14 11 9 7 6 5 4 3 2
848 862 873 882 890 895 900 904 907 909
92% 94% 95% 96% 97% 97% 98% 98% 99% 99%
1 1 0 0 0 0 0 0 0 0
2042 2043 2044 2045 2046 2047 2048 2049 2050 2051

2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928
0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
10% 9% 8% 8% 7% 6% 6% 5% 4% 4%
304 274 246 222 199 179 162 145 131 118
16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2%
49 44 40 36 32 29 26 24 21 19

5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9%
(18) (16) (15) (13) (12) (11) (10) (9) (8) (7)

31 28 25 23 21 19 17 15 13 12
(9) (8) (7) (6) (6) (5) (5) (4) (4) (3)
23 20 18 17 15 13 12 11 10 9
21.50 22.50 23.50 24.50 25.50 26.50 27.50 28.50 29.50 30.50
0.08 0.07 0.07 0.06 0.05 0.05 0.04 0.04 0.03 0.03
2 2 1 1 1 1 1 0 0 0

2 2 1 1 1 1 1 0 0 0
911 912 914 915 915 916 916 917 917 917
99% 99% 99% 100% 100% 100% 100% 100% 100% 100%
0 0 0 0 0 0 0 0 0 0
2052 2053 2054 2055 2056 2057 2058 2059 2060 2061

2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928
0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
4% 3% 3% 3% 2% 2% 2% 2% 2% 1%
106 95 86 77 70 63 56 51 46 41
16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2%
17 15 14 13 11 10 9 8 7 7

5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9%
(6) (6) (5) (5) (4) (4) (3) (3) (3) (2)

11 10 9 8 7 6 6 5 5 4
(3) (3) (2) (2) (2) (2) (2) (1) (1) (1)
8 7 6 6 5 5 4 4 3 3
31.50 32.50 33.50 34.50 35.50 36.50 37.50 38.50 39.50 40.50
0.03 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01
0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0
918 918 918 918 918 918 918 918 918 918
100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
0 0 0 0 0 0 0 0 0 0
2062 2063 2064 2065 2066 2067 2068 2069

2,928 2,928 2,928 2,928 2,928 2,928 2,928 2,928

0% 0% 0% 0% 0% 0% 0% 0%
1% 1% 1% 1% 1% 1% 1% 1%
37 33 30 27 24 22 20 18
16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2% 16.2%
6 5 5 4 4 4 3 3

5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9%

(2) (2) (2) (2) (1) (1) (1) (1)

4 3 3 3 2 2 2 2
(1) (1) (1) (1) (1) (1) (1) (1)
3 2 2 2 2 2 1 1
41.50 42.50 43.50 44.50 45.50 46.50 47.50 48.50
0.01 0.01 0.01 0.01 0.01 0.00 0.00 0.00
0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0
918 918 918 918 918 918 918 918
100% 100% 100% 100% 100% 100% 100% 100%
0 0 0 0 0 0 0 0
Revenues that include also small cells revenues (non-binding agreement that if Tim or Vodafone need small cells they should prefer to Inwi
ne need small cells they should prefer to Inwit insted of other towercos).
WACC-WARA
EUR/'000

OK!
a b = ai/atot c
Asset Remuneration
Fair Value % of NIC
EUR/'000 rate (%)

Tangible assets 8,750 53.9% 3.1%

Financial assets 1,500 9.2% 10.6%
Net Working Capital (1,200) (7.4%) 1.5%
Account Receivables 1,870
Other Receivables 1,415
Account Payables (2,900)
Other Payables (1,586)
(Funds) (557) (3.4%) 1.5%
TFR (506)
Other Funds (51)
Intangible assets 7,738 47.7% 8.3%
Brand 3,318 20.4% 8.3%
Customer relationships 1,005 6.2% 8.3%
Hypothetical Goodwill 3,415 21.0% 8.3%
FV Net Invested Capital 16,231 100.0%

OK! check OK!

Price (Eq Value) + PFN 16,231

Fair Value Rem. Rate Charge

Total fixed assets 8,750 3.1% 270
Financial assets 1,500 10.6% 159
NWC (1,200) 1.5% (18)
(Funds) (557) 1.5% (8)
Intangible for reconciliation 7,738 12.2% 946
16,231 8.3% 1,349

OK! Check OK!

Spread Intangible 3.9%

Spread Intangible (value) 3.9%

OK! Check OK!

 d e=c+d f=b*e

Spread % Final remuneration rate (%) WARAi (%) Assumption remuneration

rate

3.1% 1.7% Kd pre-tax

10.6% 1.0% Ke
1.5% (0.1%) Risk-free rate

1.5% (0.1%) Risk-free rate

12.2% 5.8%
3.9% 12.2% 2.5% CoC Intangible
3.9% 12.2% 0.8% CoC Intangible
3.9% 12.2% 2.6% CoC Intangible
8.3%

OK!

Remuneration rate for intangibles to be calculated backwards

Paste-values cell to be used in Intangible valuation