12/03/2019 INTRED S.P.A.

AIM Conference – Milan

May 27, 2019

1

Investment Case

2

Broad range of services addressed to a wide range of clients

Strong local presence in a thriving area

At the forefront of innovation: the Network

A profitable business model based on long term client relationship

Proven track record and experienced management team

12/03/2019 INTRED S.P.A. 3

Company Overview

INTRED, The fiber company

4

INTRED is a telecommunication and internet

provider with its own fiber network

infrastructure

Founded in 1996 by Daniele Peli, INTRED

provides: Fixed Broadband and Ultra-Wideband

Connectivity, Fixed Telephony Services and

Cloud

INTRED holds a strong presence in Lombardy,

the richest region in Italy

INTRED has a fragmented customer base with a

very low churn rate ( 4%)

80 qualified resources

€ 28M capex since the

founding

93.6% Customer Satisfaction

Index

23 years of expertise in the TLC

Industry

2,170 km of optical fiber and

130 POP in Lombardy

Over 27k data users in 1Q 2019

A History of Profitable Growth

5

DANIELE PELILEADS THE COMPANY

STARTING OWN NETWORK

EIR BRAND WAS FOUNDED

LISTING ON AIM STOCK EXCHANGE

2012

2010

1997

INTRED SRL WAS FOUNDED

1996

2018

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Customers (000)

Revenues (million)

6

#Clients x5

CAGR Revenues

‘15-’18

+23.5%

€ 17.2M

Revenues

+83%

Strong growth starts

in 2010 with the

proprietary network

10x

in 10

years

A History of Profitable Growth

26.3K

Governance

7

Daniele PeliChairman

Board of Directors

Marisa PratiDirector

Adalberto SalviDirector

Alessandro TriboldiIndipendent Director

Renzo TorchianiDirector

Daniele Peli

Chairman & CEO

Filippo Leone

CFO

Top Management

Daniele Peli; 46.2%

Marisa Prati; 23.1%

Value First SICAV; 9.9%

Employees & Managers;

0.9%

Market; 19.9%

Stock Performance

8

Price (17/05/19): € 3.86

Market Cap (17/05/19): € 61.2 M

Avg. Volume: 9.4K shares

70

90

110

130

150

170

190

17/07/2018 17/10/2018 17/01/2019 17/04/2019

INTRED FTSE AIM FTSE MIB FTSE Telecom

Number of Shares 15,850,500

Free Float 21.40%

Market Cap (€/M) @ IPO 36

Shares Issued 4,861,000

Shares newly issued 4,420,500

Greenshoe 440,500

Price Adjustment Shares * 1,714,500

• Issue Price (€)

• Date IPO

2.27

July 18, 2018

IPO FIGURES

• 70.0% growth of Intred Share since

listing

• Intred outperformed the AIM

market by 80% and the FTSE MIB

by 74%

*Price Adjustment Share (PAS) converted on May 15,

2019 into ordinary shares

12/03/2019 INTRED S.P.A. 9

Market Outlook

Market Outlook

10

*Source: AGCOM

Num

ber

of

accesses (

M)

Num

ber

of

accesses (

M)

0.44

1.06

2.05

4.06

6.38

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

FTTC Access

0.31 0.32

0.41

0.55

0.85

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

FTTH Access

• Services offered using FTTC technology grew by over 70% in one year.

• The accesses in FTTH have reached 850 thousand (+300 thousand in 2018).

• The increase in FTTC, FTTH and data traffic is due to the growing demand for online video content on the fixed

network. FTTC and FTTH have together reached 36% of total accesses.

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

-10.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

Market Outlook

11

EBITDA

margin

Revenues 2017

Sales

growth

Source: Corporations’ balance sheets

12/03/2019 INTRED S.P.A. 12

Business Model &

Strategy

At the Forefront of Innovation: the Network

2014

420km

2015

850km

2016

1,120km

2017

1,500km

1Q 2019

2,170km

INTRED has a network structure with 1,950 km of optical

fiber and 130 active POP

● Coverage of Lombardy region

● CISCO SISTEMS MPLS Technology● Network capability: up to 80k user● Now: 28K data connections and 8k voice connections

13

2018

1,950km

Broad range of services and wide range of clients

14

▪ More than 95% of INTRED’s revenues are

based on recurring fees and traffic

▪ High revenues visibility due to 85% of

anticipated invoices paid within 30 days

(average payment time < 36,4 days)

▪ Very low churn rate (4%)

▪ Long term relationship with the customer

(3Y contract with best customer and Public

Administration)

▪ Wide range of clients, 27,912 data users at

March 2019.

1Q 2019 Revenues breakdown per service

Other1%

Ancillary Services4%

Hosting e Housing

2%

Voice12%

RDSL Connectivity

10%

Ultrabroadband 53%

Broadband18%

Investments Strategy focused on Network

15

1995 2018 2019 2021

€ 6.5 M

€ 28 M investments since the foundation

€ 30 M Three Year Plan investments

• Becoming leader in the optical fiber connection market of periferic areas where the major competitors are not present

• Development of Ultra Wideband connectivity, disinvesting from broadband connectivity by using the proprietary network

• Development of the fiber network through IRU contracts with major TLC operators

Main Areas

- Bergamo

- Brescia

- Lecco

- Milano

- Monza Brianza

- Mantova

Main Technologies

FTTH PTP

FTTH GPON

FTTC

12/03/2019 INTRED S.P.A. 16

FY 2018

Financials

Recent Development

Network

• The infrastructure network

reached 2,170 km in 1Q 2019

• 27,912 Data Users in 1Q 2019

(+20.3% YoY)

• Agreements with TIM to

purchase 500 km of network

infrastructure

• Agreement with Open Fiber to

purchase dark fiber in order to

reach a higher number of real

estate units with FTTH

connections

* Normalised EBITDA doesn’t take into account revenues/costs of listing

Financial

• 1Q 2019 Revenues at €4.9M

(+20.7% YoD)

• 2018 EBITDA at € 6.8M ;

EBITDA margin at 38.1%,

Normalised EBITDA* margin

at 41.7%

• 2018 Net profit at €3.2M,

+26.4%

• Dividends: € 0.02 per share

with a payout ratio of around

10%

• 2018 NFP positive at € 6.6M

17

Financial Highlights, Strong Growth

18

* Adjusted EBITDA doesn’t take into account revenues/costs of listing

EBIT (M€)

1.4

2.4 3.5

4.2 4.7

15%

21%

23.9% 23.4%26.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

-

0. 5

1. 0

1. 5

2. 0

2. 5

3. 0

3. 5

4. 0

4. 5

5. 0

2015 2016 2017 2018 2018 AdjEBIT margin

CAGR '15 - '18: 45.8%

Net Financial Position (€M)

(5.3)(2.5)

(4.1)

6.6

2015 2016 2017 2018

Net Profit (€M)

0.9

1.6

2.5

3.2

2015 2016 2017 2018

+26%CAGR '15 -'18: 54.7%

+86%

+55%

*

2.5

4.0

5.7

6.8 7.3

26%

35%38.5% 38.1%

41.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

-

1. 0

2. 0

3. 0

4. 0

5. 0

6. 0

7. 0

8. 0

2015 2016 2017 2018 2018 Adj

EBITDA margin

CAGR '15 -'18: 39.9%

EBITDA (M€)Revenues(€M)

Datalines costantly improved

19

▪ In 2018 the number of users with datalines increased significantly: of almost +20% YoY

▪ Continuous shift from broadband to ultrabroadband

▪ Very low churn rate (4%)

2019 2018 2017

Jan 26,873 22,306 18,548

Feb 27,358 22,716 18,862

Mar 27,912 23,206 19,275

Apr 23,598 19,634

May 23,934 20,007

Jun 24,217 20,335

Jul 24,367 20,556

Aug 24,544 20,756

Sep 24,980 21,123

Oct 25,451 21,455

Nov 25,858 21,727

Dec 26,268 21,937

-

5.000

10.000

15.000

20.000

25.000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017 2018 2019

0 500 1000 1500 2000 2500 3000

Other

Ancillary Services

Hosting e Housing

Voice

RDSL Connectivity

Ultrabroadband

Broadband

1Q 2018

1Q 2019

20

1Q 2019 Revenues driven by Fiber Connections

Turnover Breakdown

54%

13%

29%

4%

Business Customers

Wholesale

Household Customers

Public Administration

Revenues Breakdown

+46.9%

+18.6%

-5.1%

-8.7%

2018 Income Statement

21

• 2018 Revenues increased by 21% to €17.9M

• ROS 24.4% at the end of 2018

• Other Operating Costs include:

• €4.4 costs of access

• €2.6M of Personnel Costs

• EBITDA at €6.8M, Normalised EBITDA at

€7.3M

• EBITDA margin from 38.5% at the end of

2017 to 38.1% in 2018; normalized EBITDA at

41.7%

• EBIT at €4.2M. EBIT margin from 23.9% to

23.4%

• Net Results at €3.2M, after a 26.4% tax rate

€ 000 2018Normalized

20182017

YoY%

('18-’17)

Value of Production 17,883 17,467 14,777 21.0%

Raw materials (122) (122) (311) -60.6%

Services (3,357) (2,469) (2,253) 49.0%

Other operating costs (7,597) (7,597) (6,517) 16.6%

Total Operating Costs (11,077) (10,188) (9,080) 22.0%

EBITDA 6,807 7,279 5,696 19.5%

EBITDA margin 38.1% 41.7% 38.5%

Depreciation (2,617) (2,617) (2,172) 20.5%

EBIT 4,190 4,662 3,524 18.9%

EBIT margin 23.4% 26.7% 23.9% -

Net Financial Income (Charges) (32) (32) (54) -41.6%

EBT 4,158 4,631 3,470 19.8%

EBT margin 23.3% 26.5% 23.5%

Taxes (950) (932) 1.9%

Net Income 3,209 2,538 26.4%

Net Income margin 17.9% 17.2%

22

Listing impact on profitability

2018 EBITDA: Actual VS Last Year

€/000

The growth is

almost entirely due

to the increase of

clients

*Tax Credit

5,696

2,800

(110)(263) (154) (41)

(1,039)

391 416

(888)

EBITDA2017

Increase inRevenues

OtherRevenues

PersonnelCosts

Adv.Costs

Maintenance Costs ofAccess

OtherCosts

EBITDA2018

ListingRevenues*

ListingCosts

EBITDAReported

7,281

6,808

23

2018 Balance Sheet

• Virtuos Net Working Capital trend:

average cash in and payments

confirmed.

• NPF turned positive due to a high cash

generation and capital increase.

• €6.5M invested in strengthening the

proprietary network that reached almost

2000 km.

BALANCE SHEET (€000) 2018 % 2017 % Abs. val. Change %

Trade receivables 3,096.7 19.3% 3,581.5 26.5% (484.8) -13.5%

Other assets 1,015.9 6.3% 1,127.9 8.3% (112.0) -9.9%

Accruals and deferrals 343.7 2.1% 497.1 3.7% (153.4) -30.9%

CURRENT ASSETS 4,456.3 27.7% 5,206.6 38.5% (750.2) -14.4%

Trade-related payables (5,061.6) -31.5% (4,486.9) -33% (574.6) 12.8%

Payments on account (3.5) 0.0% (1.6) 0.0% (1.9) 115.4%

Tax position 269.5 1.7% (362.2) -2.7% 631.7 -174.4%

Accruals and deferrals (4,477.6) -27.9% (4,124.3) -30.5% (353.3) 8.6%

Other liabilities (507.1) -3.2% (426.4) -3.2% (80.7) 18.9%

CURRENT LIABILITIES (9,780.3) -60.9% (9,401.5) -69.6% (378.8) 4.0%

NET WORKING CAPITAL (5,324.0) -33.1% (4,194.9) -31.0% (1,129.0) 26.9%

Intangible fixed assets 4,856.9 30.2% 3,735.2 27.6% 1,121.7 30.0%

Tangible fixed assets 16,991.0 105.8% 14,379.1 106.4% 2,611.8 18.2%

Financial fixed assets 114.4 0.7% 99.8 0.7% 14.6 14.7%

TOTAL FIXED ASSETS 21,962.3 136.7% 18,214.2 134.8% 3,748.1 20.6%

Employee severance indemnity (552.7) -3.4% (477.4) -3.5% (75.3) 15.8%

Provisions for risks and charges (22.2) -0.1% (25.9) -0.2% 3.7 -14.3%

NET INVESTED CAPITAL 16,063.4 100.0% 13,516.0 100.0% 2,547.5 18.8%

Share capital (10,000.0) -62.3% (3,810.0) -28.2% (6,190.0) 162.5%

Reserves (9,441.6) -58.8% (3,091.5) -22.9% (6,350.1) 205.4%

Result for the year (3,208.7) -20.0% (2,537.7) -18.8% (671.0) 26.4%

SHAREHOLDERS’ EQUITY (22,650.3) -141.0% (9,439.2) -69.8% (13,211.1) 140.0%

Immediate liquidity 9,651.1 60.1% 1,087.8 8.0% 8,563.3 787.2%

Payables due to banks - within 12 months (1,252.3) -7.8% (1,906.0) -14.1% 653.7 -34.3%

Payables due to banks - after 12 months (1,811.9) -11.3% (3,258.6) -24.1% 1,446.7 -44.4%

NET FINANCIAL POSITION 6,586.9 41.0% (4,076.8) -30.2% 10,663.7 261.6%

€m

Net Debt & Cash Flow Analysis: Dec’17 – Dec’18

(4.1)

6.8

(6.5) 1.1

10.0

(0.1)

(0.9)

0.3 6.6

NFP2017

EBITDA CAPEX ∆ NWC IPO Proceeds InterestExpenses

Taxes Other NFP2018

24

2018: Investments continue

• 2018 investments at € 6.5M over 35% of revenues focused on

FTTC and FTTH networks development in Brescia, Bergamo,

Monza Brianza and Mantua.

• Most of infrastructure network investments are in tangible fixed

assets (73.4%), related to the development of the network, and

in intangible fixed assets, represented by IRU (26.6%).

2018

Network Development Capex €/M

2.5

0.5

1.1

1.7

5.2

2.5

4.2

4.8

-

1.0

2.0

3.0

4.0

5.0

6.0

2015 2016 2017 2018

IRU Proprietary Network

25

26

NEXT EVENTS

BOARD OF DIRECTORS

2019 H1 financial report.

September 26, 2019

HEADQUARTER INVESTOR RELATIONS

INTRED S.p.A

Via PietroTamburini 1,

25136 Brescia (BS)

INTRED

CFO & Investor Relations Officer

Filippo Leone

CDR Communication

IR Advisor

Vincenza Colucci

Tel: +39 030.72.80.200

www.intred.it

Tel. +39 391 4143050

ir@intred.it

Tel. +39 335 6909547

vincenza.colucci@cdr-communication.it

12/03/2019 INTRED S.P.A.

Thank you

27