Cellnex Telecom (CLLNY) 4 Nov 202020 Q3 Earnings call transcript

Good afternoon, everyone. My name is Juan Gaitan, Director of Investor Relations at Cellnex and I would like to thank you all for joining us today for our Q3, 2020, results conference call.

As always, I'm joined by our CEO, Tobias Martinez; our CFO, José Manuel Aisa and our Business Deputy CEO Alex Mestre, who will lead today's session. Throughout our prepared remarks, we will refer to our results presentation and then we will open the line for your questions.

As you might have seen today, Cellnex confirms that it is in advanced conversations with Hutchison to explore scenarios of a strategic collaboration between both companies, including the potential acquisition of certain infrastructure. in terms, to been as far. not and additional reached are potential the no we a provide position information so Unfortunately, agreement has we and announcement And a appropriate. as make will when further I without will And ado, now over Martinez. to hand Tobias further Please, Tobias.

much sharing you good and in main period, and of with so you very thank I would which afternoon, time the marked results for the the your of Well, successful today. and by has like you capital Juan initial thank the everyone, much our our to strong been pipeline. start deal quarter, highlights increase delivery

last model you again our organic record growth smooth reaching to Integration generate for and are the a with adjusted As like A That's ability continually make ensure posting quarter. growth our XX%, build-to-suit performance, XX% financial progress solid circumstances. our organic processes to revenues the business people, to and I challenging growth would growth, increasing to fee pace why is keep the flow leverage and expertise the resilience XX%. we programs critical compared right and see, very strategy. and strong EBITDA the our up under to up to to have delivering can highlight cash we integrations year with and our on on our speed. our of

we you reiterating financial perspective, Towers the we from know, work by deal soon. our announcing NOS both confirming very on flexibility. a guidance, to first capital the And new today have our visibility have as execute are Portugal. capital structure plenty ability in to done we our and contribution the to Thanks Arqiva increase. expect includes which, more We intense provide our momentum, recent of after And are we finally, projects from

slide. to Moving next

context of recall represents more with alliance our in transaction the Iliad. please step Poland. long-term of highlights the one me This agreement in strategy Let main our recent

and a be the national up stake X,XXX acquiring sites to we will in circa X,XXX years. over are Play’s deploying sites We XX% next XX network of new

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here to operational our you, showing Thank seven, are we in Tobias. move If we quarter. performance slide the

XX% services on NOS And organic progress we at only, of last opportunities array X% PoPs organic seeing organic grew PoPs have order wider a a provide have are make secure increased can our organic we to compared around believe geographies. the XG you there around further organically. from to growth shown are around we as clients, result successful generated assessing Europe. finally, we process of a a On to year, In the and densification our see continue X, stronger the all growth focus to acquisitions. our we generate expand also future consistently including growth XX%, commercial slide build to Poland. growth. efforts to Total And continued have in summary, capabilities. our in we DAS the is Iliad to we across recent as across France, Italy and If increased continues mentioned, As on industrial partnership, scope in organic have contribution to of and growth just and

are services, potential our more we We markets. markets, not are established diversification our also but assessing markets, clients. in our Current all recent only in further programs the for as expected seeing demand in for constantly build-to-suit and for progressed solutions

continue a our neutral area expanding as networks stadiums, capacity assessed attractive high with execute solutions shopping computing the edge for and with indoor in of opportunities networks. host a with same centers. expected of beyond strategy core adjacent small and Always football only the mobile outdoor transport relationship such also being core to capabilities We fiber-to-the-tower, our Europe, and by opportunities economics. We're with XG the analyzing at extension across coverage and in and proceeding tower as tower areas tenants towers anchor natural cells, our our private mobile of as business

Moving to X. slide

organic Taking flow below to our deals. the our impact the by levered see cash generated positive the leveraged is flow recurring adjusted effects together, elements linked can offset of building portfolios, on has strong of EBITDA contributor. main by recent reinforced Cellnex our cash growth partly new being the XX% payment period. You free here is blocks a growth recurring cash significantly all leases from in the these year-on-year. This our contribution free The of

number slide XX. to Moving

mainly with operating growth, our build change growth by suit have contribution If XX% also has adjusted margin. XX%, effective to by and infrastructure in organic OpEx and and adjusted EBITDA table, in efficient of management EBITDA of significantly levered margin the acquisitions, by base. from our at our been look business which the increasing of terms free this XX%, recurring our EBITDA, very XX%, perimeter, recent is revenues EBITDA XX% explained we cash from boosted increased that to see of our our flow, including telecom can and Our leverage adjusted figures the you services

to XX. Moving slide

in see Increase during debt These to deals total in activity sheet, are and than structure explained the the quarter. by year. of movements our can decrease offset December debt and recent in reflects capital mainly cash, the the movements as M&A increase a XXXX. You more assets by December, in balance corresponding compared our issuance. our our mostly to activity capital Compared the result our net

available opportunities continue position that XX, this, our following September. face structure a our today of position us committed pursuing to pipeline. And liquidity on in can busy see details the strong the allow of on and have liquidity you up We capital as and investments also our our XX,

strong Our Today, maturity before average a we guarantee, required no has committed have liquidity is €X July no six no of debt and at around years, of covenant. with a an refinancing available no around billion, pledge, XXXX. no available around cost and position hedge, X.X% fully

at a financial challenging And reach to in answer will order allow covenants. environment, backlog close We This and this, us €XX growth. our with in all this now has financing options questions. your disposal continue maintain your a to And also of combination, wide with our to we our flexibility debt our billion, us we transactions. provide no of remain array when

open please line. the let's So

Ladies [Operator from The Simon ahead. from question and Barclays. Q&A go starts Instructions] now. Please session first gentlemen, comes the Coles

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much That’s very so clear. Thanks guys.

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ahead. question Akhil go next JPMorgan. Please Your Dattani from comes from

help how looks the you And of like to that because just €XX of by the and be Play comment I transaction taking your you're the or I've pipeline any, billion billion that announced, and an weighted think other that there understand general on One if how color €XX hi, they effectively good the deals largely the were still useful. in how would Hutch one ticket as pipeline. implying the is to would announcement So just But this pro for you you the pipeline at the announced for cumulatively afternoon. times outlined looking €X you some the rights billion. and is Thanks very they're €XX then of you if seem got would upfront. had when you've deals it deal, could update about of second two us please. billion obviously €XX I that question issue, I now take call morning, you significant would those a listening be that are? much two And six can the was I at. you Hutchison context be around we M&A of, give accounted to the wondered guess for probability M&A largely forma Yeah, sense us capital know guess if billion that, today. questions. to looking the not. the irrespective leverage would you consume sort don't if

to you you're So a other to financing just the soon, deal talk could market are the ways you see desire and if Thanks back of the thinking us funding? you deals. need lot. about think I Do about how through or future wondered come

you take the clear also month the Andrew, also pipeline long Akhil very sorry. company know know Akhil. write €XX you to for down Hello, a that billion. in And to the Akhil, Akhil prospectus July we you that of time. Listen question. well Hello, to very happy up of presented the

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program that We also with it investment clear And to this prospectus. around deals €X.X we impact clearly -- facing highlighted at billion, billion, have define pipeline. in stated sites. that they our in Also deals. that We up the is that in were You have Poland was transformational build-to-suit €X.X deals Poland invested We company billion obviously clearly transformational in prospectus, our billion. €X.X is know, consuming that already those €X.X is Cellnex. and have highlighted several XX,XXX the on these did the than more the from what we an

that was said at to we imminent, our when So it guideline true. time you, was that

pipeline our beyond. that the cannot -- is today, from clear tell the been have as cannot the Cellnex in not we change raised go relevant equity as apart that, consumed I the simple very is fire it's as have can we methodology. that. fact we So have what and when We we power and going we But do to you and

to suggesting pipeline we were and you question, end of for Cellnex billion. to order trigger in prospectus M&A about explained that's fine. finally the two us, were the opportunities. But can upfront the the matter. was accretive debt of think as me EBITDA, the your in or face is At are clearly within has You the consideration to I for net in And deferred suggesting some present you more that deals the models more €XX doesn't day

explained is therefore, very grow, for the obtain profile what backlog, of And Cellnex have always we that. raised our have billion capital quarter. us, is credit is clients, you we revenues. and same what go able to have and For is quality are see this presenting has we business increase from you diversified every corporate risk single and that the when €X have used. This methodology the improved same is This the to a important methodology capacity to can we we the you to a visibility been we our been to our more as we rating able do

Great. so much. Thank you

from question go you. Lee Goldman Please ahead. comes from Andrew Thank next The Sachs.

had a is I do that I kind to there's Akhil's. follow-up it. to One three you've think. raise everyone. said And when as afternoon, pipeline Good you'll questions of cash you demonstrated

alongside frequently, in there's and number the raised on. or equity advance quite also things raised in deal. you've And sometimes us you're sometimes told of past, You've negotiations a working a equity

was you'd much whether a or competition the looking equity for deal, insights wondered equity you've us summer questions to a deals. just ahead question, any time Second could give you do next that? you'd of look lot see wait So you -- for When these raise of into you if got. over when how raise the you're

if okay, faced I deal degree wondered there out negotiating comment play was you you're competition negotiating just Hutch Hutch and to going it's a then you've towers. when I There historical a the when million deal? And number €XXX on for the for just quick question. third So could ask the of if is EBITDA number

going deals the what deal? Thank there deal think in you any number you're there's to color that either your be comparison that terms are with I you getting if do problems for EBITDA with just you'll actually can comments to any of I exactly in make what but apples-to-apples getting and terms us around of with ignore be previous number, wonder, the think or you. with

you, Thank Andrew.

can We on second will start one. take maybe with your that question competition. Maybe Tobias you

think, of our Yes. play Hi, I you crystallization customers. Andrew. it's Well with may this of consolidation at say that long-term worth to in the I think a look or terms relationship if underline is the Hutch, if I competition or

So customers. we I proof think of is agreement this the our a partnership with have strong

If our you customer look was very beginning at Cellnex story, in Italy. the of Hutch first international

very well. very the other each that means had know beginning partnership a since we relationship, good So agreement very we trustable very

are is best as of are same huge huge So Iliad. customers we this with one leveraging with a our we And assets. of also portfolio, the a on Iliad is well portfolio this running relationship.

most we is not just are we competing not competing important industrial rest partnership well process. is agreement leaseback our selling we building relationship. at competition I for mean, we a Iliad. in This of is the just transactions. this public well So are common and I strategy It's both about not for a are as play a just a our this not our developing and our public mean are end a are customer is for about of very the I relationship It's Cellnex. relationship think the are that assure, we thing of multiples it's customer our supplier. not just customers. tender. in footprint for day, I competition. This think competing the loyalty, and not with I it's partnership is are agreement. question And also a differentiation Europe -- partners we good, this proof me, of think This about of terms of and partnership and element Hutch is that This

you to back Thank increase. third question Tobias. capital top related the to sequence and first on question Coming

as in the attached. decrease end Cellnex know do of this with pipeline the term. do circumstances the we to answer. or Well a capital going At not or in has methodology we attached do saying M&A happened questions as again the a the with is, has you here is able increase changed harmony are happen day both to both it because that already short capital

have for visibility concept time. are will sign M&A have about high to you in only few have you high already because takes -- So me is or the allow a this sign us you in to spend moment next This and visibility. And you to to we the months.

with the very a industrial is pipeline other. day for and appears credentials. and time. something We good and We're we opportunities relationship, one lot have therefore, built And tend out of disappears a the that opportunities. up opportunities exclusive up have building It's to that building global not

It of maybe assessing we June, was And proceed of so opportunities second a a in there let when if But our say July then in pipeline the the turmoil pipeline our was environment was the or the also we decided lot there. we around the I may COVID. relationship were and of U.S. José end understanding day because to customer unfortunately the me world. the at July, elections, were wave Yes. seeing projecting June Manuel,

to to execution you the is will rate maybe M&A quite so pipeline. So high. maybe be never know the you Well on success situation when execute a in crystallize,

focusing are pipeline. the not capital this all is just why It's also in demonstrating So the best. doing is reason at that we anticipate at looking my opportunity the least Andrew. I This one increase is maybe we are additional comment this we context. about Cellnex well And when think also

currencies matters context So the in, contact.

about true. comment. the that of from X. you scratch from we is also But cannot And deals some projects what was some question that, It's your figures can Cellnex builds tell all up last I

have I'm that The -- we is months. didn't -- will the -- single to in we be or somehow contract this was the So in that doing fact carve-out for done well few presented afraid exist. deal every next you is one, instance last

does this not exist. So

there counterparty. of consequence And agree understand to and have to the We the we with a an counterparty the as EBITDA. have needs is

this crystal do not So work. ball. We how have we a is

helpful. very really is much. Thanks That

you. Thank

comes Ranjit Roshan Bank. Your Please from ahead. next Deutsche from question go

deeper Great. how When cost me follow-up. with back goes year much Secondly, one suits. Thanks quickly for in please? you. upfront one just José you say of efficiencies, your of upfront as to to a interested some element efficiency type it moved question deals, this sense negotiating quite the in a had the X, a moves Because XXXX But X the Thank constantly it's to the of the map on? you stand-alone you questions. kind calculation for can land offered? towers? upfront and think further Is geographies know they east Manuel across -- be run would I Tier the owners. a just any build-to-suit I even that quick It an possible I if X the in Two to went ground into ongoing new Did now upfront conjunction to that, of Have the Tier and if bit we announced on were you lease renegotiation to get move multiple? regarding on not back with geographies. X the follow-up of build the baked kind started any geographies. if you're of CMD part to We've in I be map Have get of you Tier your is full in And have update? possible rate multiple, get in will that projects think Europe? Tier to from previous

leases start maybe I any question. as I element. treat your process, first with other the valuation mean we will during cash

as incremental time, a the tenant the we anchor cash of from will is loss. an an that we to in there leases tenant the some base ground And for staff from as and is over cases generating be course, the fees to neutrality element, are there So, generated which revenues existing important increased a third be platform. parties,

that price But will on expectations Our that different payment really cash I evolve, other apply our because valuation can with has methodology impact we mean in item seller. offer process. that associated several we treat any this as how initial the to the again, leases, an don't on we

-- The Tobias? second yeah,

third. changes Well, at the no geographies mean priority. same I remain Geographies, all. will second take and I

market maybe But the of the for fourth So, of This structure of Poland Europe. the the country, the has the order country economics most why assessing since evolution important is this one country is understand of reason assets, of maybe macroeconomics, in the us, the been were the operators market we very and in which to to share to is, in attractive positioning, the everyone. also understand the itself. the years east understand the X.X

So, no just step -- single a not forward. one again

to and case. it Cellnex And right the is be for the the and was understanding opportunity the suddenly -- case then So opportunity it been has appears. really

maybe me the there. A vast third is a choice opportunities say not East standalone, let Poland Europe. We there. in of It's is build-to-suit are of our to not standalone our explain in priorities, about not changing that majority worth build-to-suit first it's but that, the you

based launch we program. is tending is then additional anchor basis. proactively to not one an are build-to-suit if we our XX%, pursuing at complementary of look the M&A not existing That attached at projects build-to-suit build-to-suit the pursuing, are a tenants And transactions. around, a standalone. of build-to-suit maybe top we on way XX% when want build-to-suit launch existing on in generally But, So an one the standalone you anchor looking additional they speaking, portfolio are program when on other is opportunities build-to-suit programs. or want projects to if -- to our a assessing of But of a are or the to tenants

the If integration I on are please? follow-up helpful. potential France, two build-to-suit Where projects we just very on the quickly of in that. That's

Well, very to of though I not the this that XXXX, say topic you the the last, last the we my Franco. have do even of any well indicator. have generally I it's that the about in in red dashboard, on middle is crisis. tell Maybe But in I on speaking, minute, are signal this performing hands of can flag

you sites of provide figures. close in we more to for have new months and to around Just some accurate Iliad. Bouygues XXX Only three deployed the QX, XX new sites for

say, in quite the been I of, have So we successful context would challenging our environment deploying quite commitments. a

performing very absolutely. Absolutely, It's well.

what if future, But Let's evolution and happy. the the see worse happened very in are we very, becomes up-to-date, worse.

Thanks That much. very does continue.

Thorne Thank Please Giles you. from question from next ahead. The Jefferies. go comes

Thank you.

have question which a coming. they agreement, is but contractualized, market. it, on finally long rationalization sharing risk, agreement to site been was sharing Portugal. towers your and negotiating has the revenue the RAN indeed, while you seen First that question and Vodafone going no two-third to time the sharing. managed to there's were assuming of so the I'm We've is NOS that And answer the some buy is in some

to And in are around last it'd Italy. second revenue more question, similar question asked It a has situation call Vodafone-NOS I on U.K., follows know the So impact be useful buying the is on you I think a where as hypothetical on you? in what Italy. towers agreement the

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Maybe in so want Alex, Yeah, comment? you Giles. the Portugal. RAN on much, if Thank the one you first to sharing

you, absolutely. Yes, Thank Giles.

mentioned in on Vodafone deal long the RAN between for sharing was and well market you As time. already that quite a NOS

were fully in a factorized. into we consideration, was and that take position it So, to

what clients is we like is mentioned, our line because mutualizing in very there infrastructure. where have so occasions we passive, sharing As multi much of this other in active is infrastructure, our

the and And So sign among is what on cooperate third-party this willing to or helps is that's less about. our always it. a themselves, good a operators having job more

can would we you sharing have that potentially in on a sharing RAN of those of the happen in are be sign in would event getting NOS with factorized installation potential portion that as that future, in classes we we way at the this imagine agreement customary the RAN the sharing the So revenues moment, Europe. RAN securing typical

other also was because everything sites that of is sharing, of the is way selling by be operators would that fully prior the On was to triggering tower. done potentially And we an that in optimization acquiring. the factorized, around, event number RAN the this the

in consideration, good into Portugal. elements NOS both we is agreement that took we think so So, very news finally that read and Vodafone

– Second question was around

unlikely Portugal the opportunity there finalized Vodafone no an probably event revenue its just and own but you just and just have XG had there official sharing RAN, XG RAN it's on NOS there XG the is the – opportunity And aren't built incremental clients party an conversation? sorry, of – yet on Portugal on Is there's each in that Alex, there.

the asset, anchors it the the in with is Well, capacity the normally, usage define of way area. a we reserve

So, normally, based frequencies based of on antenna certain on that the clients we There XG or anchor is site There normally antennas, and of we are – deal not number go of number beyond charging our like anything the – they that. unless, clients limits element clients. anchor how the world. integration the devoted to is an of part their is with this a interest is

vendors starting this main way are of still when But we XXX deploying is antenna. to those gigahertz, XG down the separated single to at X.X X.X X.X antennas. the embedding So are into and started see is that

antennas actually sets bigger then sets space actually less. the by three of of being is or which is much this So occupied antenna, than not two

So the being foreseeing now. anchors, for increment of deployed would an because as not least we additional XG at

quite share guess So Well, example commission clear Italy, seen and in our increasing open the creation in market environment a the Italy. antitrust of Italy. tower I largest of the that in on the event allowing the the question of we've

anticipating So, I that outcome whole I the without favorable. quite any mean, guess is environment

player So, potential any Italy market other share. increasing in its

we that, I what like guess see. So we

Third standards, player. successful across maybe Tower and contracts at we American remain provide. it's we question – can of that is Orange. course, many We the Europe. we level when offer remain we same maybe are they Well, at our met of need because either limited some to opportunities look And or details

use our the in occasions, M&A we assets. according also those where cannot we So successful criteria, be cannot

stand-alone we to projects stand-alone and that and American us was before Orange talk French project. Tobias not build purely about if more Tower we deem are a the between for difficult, mentioned convenient suit deal bit

Thank you.

Thank go question Exxon Please from comes next Paribas. you. The Sam ahead. McHugh BNP from

afternoon, one good guys. and follow-up. Two questions very short Hey,

France Poland transformational in stakes prospectus tenancy looked those terms than if could at and PoP at just, they fair you you growth just you remind or ratio deals? And you just third-party? for have what more achievable? several on in in that the obviously And the in the France buyouts? the in is clarification secondly, on think probably wonder, us, maybe minority. the the was And hold last on MNO a It's us Can of these were IPO and options French is then minority deal. put you do you business at the it's determined Do are good options think, looking growth your the that owns. on medium-term, for best how this organic remind quarter pretty opportunity the mentioned one i.e. Just you structure still white targeting the I value you is what moment. or call I

your that confirm wanted XX,XXX I Thanks with than there very to much. within one were pipes. deal pipeline So -- more more than just

Maybe much, so in organic can you growth first France. the we Sam. Thank start on

Sure.

and when pressure So, lot and mutualize vivid is some, to especially yes, are in two on important well-positioned say, clients and actually the quite we we Iliad, market two swaps on, meanwhile know. there. phases The reality is and active. out so in -- our having recent The help French to the and growing build a levers there a last in efficiencies very, on may suits that is rapidly we platforms, have because we vendors are effort is very and Those that. deploy platforms is There to sort that which the first generate is of still great anchors, very deploying our order of, transaction two possibility it's XG. deploying XG France of around on have with the besides, partners let's are deploying is respect you they

efficiencies level of that's communications like our role of be high of match creating a and believe for our can the could us. So there the there with trying technical rebounding component, all of level industrial generate we clients of on we clients is that because and high we type value projects a interest to play and

want you comment minority Manuel to José stakes. on

question your was MNOs. with partners in No, Yes. these cases, about minority stakes

And an you as in Poland. Italy, France, in You But towers has Towers. in MNOs we our Galata know. initially and XX% from has telco do Salt the is but know we perspective. our different in an try are MNOs is of financial must the in -- understanding recall as Directors Iliad that XX% as industrial we of work. importantly, have with also speak want try time have period meet to in an Board to servers, we requirements that. a Towers be -- from our natural on exit perspective, XX% partners but and first this because initial we most how their as it's time, win-win. XX% the to this did is -- now Switzerland, match, I also to clients them And win initial Everything we because of we that and Salt Obviously, that stay being therefore, stake subsidiaries. always one try there a for couple, also we who At in scratch had

only us a is bit can then good and upfront for So we XX% we acquire pay little XX% maybe later.

has fair exit regarding that moment. we to the I value. less the fair market market of parties. be on are it So depends at needs going on needs to value pay not obviously, that mean, The both

You are would In the or copy-paste, prospectus, it's Deutsche long-term we They and Capital not similar. to like with similar. public have very this long-term very something but the clearly a clients. partners. It's long-term They investors. the in Maybe is good Cellnex, same all info. exactly out are This Cellnex it's that in not stated Switzerland. example is Telekom buy has minority methodology our Partners

there to stay they a want a all natural co-shareholder. is out And was So as there of this because a as client will a third question? not structure. eventually, we them Also buy

we if are can If compare more transformational that assessing deal. you than --

know. a probability then we less clear current other did clear yes, with million with weighted asking were geographies, some higher our maybe €XX pipeline, a devote – had new We were that about this current very was explain geographies. with of question you to that money the probability. weighted think increase your probability, our very answer all at is know. with that equity others transformational last show in a capital you current probability, clients with well, of with countries, And we the we this this, clients moment a part of deals – road to wellness Well do maybe but current in to you the countries, the yes, in them in were Also

several be might there of them yes yes, yes, So yes.

guys. Thank Fantastic. you,

Crédit you. Please next Thank Jakob question The from Bluestone go from comes ahead. Suisse.

for fairly afternoon. Thanks good Hi, questions. got the I've three taking questions. quick

just for from what a what bit BTS is tower sort Is little the on more if assets of whether deal, that Firstly, potentially assets maybe know of bit shared other stakes those was this competition are competition I could the could or I around but if you then you of that on the don't for shareholders, thinking in pipeline is little maybe know of that's around operators. deal of see these And source are the behind not potential more table? you on current can some of you on comment for you of assets? some thirdly, step-up owned. your more give the a comment secondly, the fully potential by quarter. controlled Hutch or the if color in some becoming And a don't we buying saw comment that something the part that assets companies in can

you I think did I France, think you last about what which €XXX mentioned quarter. in million BTS is twice

there understand was such just Thank big a us So to help acceleration. you. why

Jakob. France, sites the Maybe one starting Thank it metropolitan was third XXX Iliad. was with center Telecom; in Bouygues you, around one, sites basically so XX I also just to also for that There also Telecom. XXX in and – quarterly mean [ph] we context it stable also of difficult performance. Well Bouygues Towerco it a is the it's project deployed to clarify quite

just this in for So months. some three see cases is you will us

maybe you is maybe But So is to Maybe what acceleration some quarter progress. performance. see slow the acceleration. an us is operators with on meet mobile our important targets in annual our an there another QX deployment. seen build-to-suit quarters just But quarterly for of a other have to we producing

on. provide the detail answer first a position to comment. question, cannot first stage Hopefully, be really we this in short. On will of more the will quite all be At we

have I lot seeing captive will that that these question to power that. we to assign control. this type a costs. assets. target different are for in mobile from honest be up for not Typically, of guess position competition are Second monetize MNO probability into operators initiatives assets is a of would the pursued coming No they We with what give

that resulting monetize a operator. is the controlled still portion. if are So willing just is entity that to they by case, the mobile And

I And also terms mobile no about of new entity is say limited in was controlled high that still operator. actually mutuality. by to So dependency, the

that's mainly So I guess that's our that call.

No. Yes.

with is exist it's very – organic by the growth, competition, of different is with country level this If cost M&A the about proprietary you. level talk country very transparent is about tower low. zero. you a If story competition but the Doesn't being the competition

So one we wanted us against firstly Jakob they discussions are – that mobile operators. compete you that, with I active we know in to remind thing if engage

competitor. So from that means operator we'll mobile to actually acquire be a trying assets our

I So don't know.

will It's to seller the the a assets very down that be sell to unlikely XXX% of competitor. one position in

do we insisting. believe So this are why reason that is the we

have We think why I of we business our proposition. are is again talking reason strength about the the succeeded. industrial This

Thank you. very helpful. That’s

ahead. next The question Emmet you. Thank Kelly from from Stanley. comes Please Morgan go

good you towers cetera CK the of afternoon be scope of do buying signal questions, them and question edge the Hutch, et bit additional Arqiva thinking Hutch? about can please. the I you the taking and questions. if thank Yes, on is little up a So or or sites, end have And first fiber-to-the-antenna of the you space selling for to a I'm maybe maybe it maybe services talk CK this? And computing fund about towers, European Recovery couple and big COVID the for Thank early about to what from is Fund And that expected second uses of the Commission? digital wondering one digital the hearing to you. services the by the then news the question, a any thoughts question, I'm during crisis. the on the in coming projects might if your be are funded any future? you're wireless pretty European theme which device, big close became picture

want you to… if Alex you. Thank

Yes. Sure.

disclosed, yes. as course, opportunity relation you But comment can of can neither to mentioned, in you be the specific nothing So imagine.

as services site on So, what services additional starting seen and news is is could so consider asset the adjacent on. we have our networks be type that cells as fiber-to-the-tower of private systems DAS well. and call densification trying and on to There some spirit of those or on also services are always small to element that like recently one providing are a collateral that as we we the you sell

in of every client deploy be additional services. So, we course to will order devoted fully with

over is those this second question countries Europe of a relation funds in €XXX yes that. big billion where fund almost activity have allocated of portion the is settled being interestingly, in we all is which which to there being do now So,

identify discussions areas are networks the having with projects, we providing the be combination and transportation type could actively of lines. working activity which is coverage on administrations of course, order which related could our of which in to the rural areas the rural in be on So, connectivity what a public to

relation for For instance, coverage there coverage. is in to also indoor hospital projects

administrations public to with be we the already proposing. in countries we set which that type discussions is of be in the several there projects having would see are that activities best So, of order could a

you very Thank Great. much.

Thank UBS. The Montalti Giovanni from ahead. next comes go from question you. Please

you. Hello. Hi, thank

you you. deal potential to also us an prospectus structure with were how about include in the thoughts Could Before of could shares with mentioning you about new you be or this that say color balance type Thank neutrality? transformational MNO. to made share issued your some disclosure you would your let's

deal a define the clearly towers XX,XXX of as transformational with question. for you have equity which is at more of deal the thank the delivery of proceeds. the in the part Well, may time transformational which stated than It's prospect the

we equity when the equity, Poland talking so Telecom we the -- the about sharing of at of SA. be talking be maybe that are we about are in and level level can talk at you So, target can Cellnex we the

in the So, prospectus. open is everything

of us. is what for And Cellnex. is is However, a open and very importance stated this clearly what key element that not is neutrality paramount is

this any that must XX%. manage no having stakes Cellnex were we this are in availability client market. any at talking or XX% the must what we means are fully level or flexibility to single the shareholding group may MNO every XX% partner is any And any more, or So, have total we have give presenting. the of must And represent

can the level okay? country can the However, will the-- Telecom if the maybe of be to level these let stakes SA the talk less. me level tell be significantly about -- We you that target Significantly less, we of were these that levels at Cellnex maximum the at of

than -- less Sorry or XX% less than XX%?

level Is at targets. the less than -- of the

we -- this is where we or -- can So, what more less financial.

Sorry.

sure quickly make correctly. me follow-up Let just understand I to

no issued bigger where or assume Cellnex be be is shares you board wouldn't to it the or sensible recommendation? let's So, stake will to stakes stake to a from -- if than stake be were be definitely that a company, new say XX% this -- there XX%

investment. investment. financial financial consulting Pure pure The

influence sense your ensure MNO So, would assume like guess? things you So, the no be allowing not I makes further it for your or neutrality would any to governance? presentation that of there

completely different is preserved. can preserves as neutrality. be that is we neutrality okay, financial, long There I more apart give this that--. be keys we must this to that stake financial neutrality elements like as represented as detail were as into what because must are long I and our What get prospectus it's wouldn't to is go What tell our preserved. open the you to in from

Clear. Clear.

Sorry, if one I quickly. very more may squeeze in

could projects your a plan or BTS or think far specific there linear you XXXX now assumption, assuming is XXXX would execution any fair at Poland. is I a pretty more Looking back-end seems it with loaded so Italy in or more you win like example more be help assumption. you. Thank thinking linear front-end it Can I'm front? us say it granularity back-end for loaded, on loaded of consensus this some let's see until compared kind of with Is to

Thank you, Giovanni.

with our clients. think relationship with that [Indiscernible] Alex will I go

with right operator. signed many we agreement have mean after ORMAT in X- programs. I we cases X- and With the mobile formation, an we reach XX-year today a development

the maybe terms densification. specific needs visibility have on client of So we'll the of in limited

modern purposes that have sense. perfect that what for So is suggesting we makes linearly

and Maybe an a to to of normally hint you as fixed be realize, committed build would suit. then up terms volume announcing in are we

certainty. have that would the possible that the linearized be So is and would think something of those the it's the I having client up I for And probably is clients assumption. fixed certain think same be visibility the committed short-term not bad to a not level

Yes. little a be could So bit potentially. backloaded

very much. you Thank

Thank you, Giovanni.

you. Thank

go question comes Florian America. next of Bank Your Henritzi ahead. Please from from

afternoon. my Hi, taking question. Thanks guys. for Good

X. had I So

back deal increase Poland, significantly. acquisition footprint your this I think will and to want Firstly, mean, at quite your M&A. in looking I also recent the I on come the Hutchison

now the potentially be we I to at if its think some also is point. enter Hutchinson announced assume going markets, you will volume into deal

So Poland. M&A just question. your and And you then assets think on maybe operations? integration order had a the take make need your on sort So compromise I to that's will I really these question a point in sure there was at not the wondering of first is which to day-to-day to a attention secondly, of you all from break focus

these to And you sites sites no is? understand Portland, also to be you X,XXX confident much. build play on could understand, should delivered I clarify you in there's just I that they given be on unlevered as far As deal going what rebinding have How very up there. the play? commitment IRR the are we to the Thank potential

thank your Well questions. for you

not The we new need the company. in an a first how evolving If are time, a another it clearly we a At have many, client, think opened the that But the years an up end do then can many and tools. this a mean have do client, but meet market invest one that is -- It one, of is things an of company. will it things industrial it instrument any company. infrastructure M&A. ago have and we fund. have that listen the we This a depend is do this private to to fund of call infancy market do. the Europe. this new client once one. is the a need. is not is is of And equity and of new market we industrial we'll on M&A this is through Cellnex And We day, that not its This we M&A, meet one this used will a is have do try we up to means we therefore -- X in there

XG. say tomorrow will infrastructure there doing of no. This also know the change knows landscape you connectivity the is as who telecom Cellnex XG we So again and is XG, are

don't So our What client. we I a M&A service want give is well to know. to

in question. to Maybe this first complement

if by about that little mean, I I about are relevant generally a good think that M&A M&A, will M&A. a the a say. they About little Obviously, the there adjacent beyond come the integration, are assets just may of and and type also XG more speaking, XG. Well, not of So just in we are even But It's countries XG M&A. becoming to not I are some XG lot the mean, seems the set bit bit of seeing more of late, very late. topology integration? it it's it's other auctions I a question. up about they even are of opportunities infrastructure it's networks. required order beyond in part

integration you to assets, customers. celebration M&A. the deliver, one you to way So the In people, is reactor and integrate of way have of the other this have

are to like say that acquiring I So companies. we always

We are not acquiring assets.

processes. deserves we touch So different because a different cultures, also why it is lot companies, people are the we deserve important integration a reason X.X, maybe it's systems, on hard three of of a M&A We integration methodologies, means like country different I IT means beyond I on attention. mean, get procedures, work lot This in IT, years topic. in or of of are very the maybe transaction. the that this systems, integrating different procedures. to pay lot mean, integrations, is a order resources, from large Maybe on full the very one now a the U.K., behind

IT to in now. on in absolutely, resources, maybe care but the and IT. it organization, specific led reduce obviously, people the that we is the this human is absolutely order well to But integrate processes as practice order team in identify then key. the next the talent their reliability the this to all We have have of processes, years the But it's deliver XX, everywhere. on partners this It's do people, hiding helping a it. best to company, because are part key from means COO, to integrations, in-house, which key systems. XX And taking of again by is and us That's is

finding even to buy companies companies when small And it it very, or come practice in company best good are like we a very So Finland. in this we about very niche people. the very but just individuals. It's just of about about generic talent. individuals. it's It's the about in this the at end question. day, not But good is about It's people, is

are second we And exaggeration answer. quickly other volume any transaction. targeting Florian, mean, on returns as I your very question short the

So, know, XX% increased possibility, site that's terms Alex, criterion. you don't And in equity do at least comment? our X% IRR want of to I our the

Yes.

gave previously so here. in we answer probably much think not I is the

X,XXX the X,XXX. being is So to a up committed there and of minimum

So tower first more besides becoming is tranche there. evolution. Polish -- clearly terms in market dynamic We the of out the

sort domino see to a also expect We of effect.

and try always, look into enter at country, when happening. As will we stages third be for sure a things second to we and

So that's there. most the probably situation possible

Yeah.

you Thank much. very Okay.

of the speakers reached Thank yours. we the floor . the much. you very Ladies Please and end session. Q&A gentlemen, is

time the disposal. Again, any much. so IR Thanks your for will end at questions, reached you you be much. we we The Thank your for much of have this team very And Thank now session. at today. your so will disposal. Bye-bye. be remaining