Company Profile Companyprofileraiway40pageng Layout 1 15/07/15 14:55 Pagina 2

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Company profile CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:55 Pagina 2

Rai Way. A journey towards an ambitious project.

Rai Way S.p.A.

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The company RAI created a Transmission and Broadcasting Division in January 1999 and in July of the same year incorporated the company that was to give rise to the present Rai Way. Following the contribution of the Division’s assets and personnel, Rai Way became fully operational in March 2000. The heir to RAI’s technical tradition, Rai Way is currently a modern service company with high technological and innovative content that uses its assets and skills to ensure that the public radio and television service and its own customers are provided with the very best in the way of technological solutions for broadcasting television and radio contents by various modes of transmission. Rai Way’s technological, engineering and operational excellence make it the ideal partner for businesses seeking optimal integrated solutions for network development and signal transmission. With over 2,300 sites spread across the whole of Italy, Rai Way is the country’s leading provider of network services for broadcasters and telecommunications operators. Rai Way has been listed on

the Italian Stock Exchange since November 2014, confirming its path towards an opening 3 up to the market and the enhancement of its image as an independent entity. CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:55 Pagina 4 CompanyProfileRaiWay40PagENG_Layout 115/07/1514:55Pagina5

ph: Anna Galante CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:55 Pagina 6 CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:56 Pagina 7 CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:56 Pagina 8

Rai Way has always represented a constant offer of technological progress.

People and technology

The past few years have been characterized by rapid technological growth in all areas of the communications sector. Television, radio, mobile telephony and the internet: millions of users now exploit these means of communication in their work, their studies and their free time. Rai Way has followed every step of this development along the way, to the point of becoming a key reference point in the various communications sectors in Italy. But now we are faced with new challenges. Service quality, communications contents and access to technology will become the parameters used to measure companies in the sector. Investment, innovation and training are the tools which the Company puts to constant use to project itself towards future technologies in the sector.

The secret of our strength: our people The Company’s leadership is built on technical excellence, which is constantly enriched by

its drive towards training in support of the development of its know-how, organization and 8 integration and by its constant emphasis on customer satisfaction. CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:56 Pagina 9

Rai Way is able to count on a qualified staff who combine a significant experience gained from the history of broadcasting and a high level of innovation typical of today’s markets in a harmonic and synergetic manner. The Company’s organizational structure of over 600 people, which blends a variety of professional paths and skills together in Rai Way, sees over 70% of the staff directly active throughout the country (23 facilities) as a means of ensuring optimum management of the networks and supporting customers’ operating structures in the best way possible.

Rai Way: the technological passport for entering the world of communications Through its services and infrastructure Rai Way takes part in large-scale projects concerning Italy ranging from mobile telephony to digital terrestrial television. Given the efficiency of its services, which deploy the latest generation standards, businesses in the sector can find

in Rai Way all the support they need for network development, combining their needs with 9 respect for the environment and public health. CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:56 Pagina 10 CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:56 Pagina 11 CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:56 Pagina 12

Rai Way contributes to the increasing success of digital terrestrial television e.

Digital innovation

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Over the past few years analog television has evolved into digital terrestrial television, completing a process of technological revolution that began in 2003. Rai Way was the instigator of this transformation for the RAI Group, and since July 2012 has been transmitting RAI’s entire television offering throughout Italy in digital format. Digital evolution does not only regard television, it means radio too: in line with its vision of the potential of digital radio and future scenarios of the diffusion of the various technological platforms, in March 2008 Rai Way contributed to the creation of the ‘Association for Digital Radio in Italy’ or ARD. Since the end of 2013, Rai Way has been broadcasting RAI programs in a number of areas of the country using T-DAB technology on a digital terrestrial radio platform.

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ph: Anna Galante CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:56 Pagina 15 CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:57 Pagina 16

Rai Way provides a quality response with high technological content.

Solutions for your business

Rai Way shares your passion for your business: the Company is by your side at all stages of network development, from design and site selection through to implementation, management and maintenance. Latest generation telecommunications and broadcasting networks require significant investment and a considerable commitment to ensure increasingly high quality levels. In this challenge, customers can count on high profile people and skills that are part of our wealth as a company.

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Broadcasting We take television and radio to the end user by providing quality and capillary coverage for the broadcasting of our customers’ video and audio signals. • Rai Way provides terrestrial and satellite and analog and/or digital broadcasting services through its networks; • Rai Way is able to provide “turnkey” solutions for broadcasting and transmission networks.

Transmission We enable video and audio signals to “travel” throughout the world, linking the locations where key events are taking place with the editing rooms and our customers’ offices. • Rai Way is able to provide audio, video and data transmission services, dedicated point-to-point connections, permanent urban links, occasional network services and “ad hoc” solutions designed to satisfy all the specific needs of a customer.

Tower Rental We host our customers’ antennas and equipment on our sites. • Preliminary feasibility study; • Carrying out site surveys to provide customers with the elements needed to assess the suitability of the site for hosting their networks;

• Availability of space on the Rai Way space for mounting antennas on the support structures and the production and positioning of the transmission equipment; • General maintenance of the site and civil infrastructure.

Network Services • Advice in the electronic communications network definition process: from site and frequency planning to the construction and implementation of the equipment, the connections and the infrastructure, as well as site maintenance; • Specialized services in the radio protection sector: NIR (Non-Ionizing Radiation) measures and specific technical advice; • Flexible modular training for acquiring and transferring skills on our products and services.

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Rai Way is one of the leading players in the history of broadcasting.

Broadcasting

Rai Way, the heir to RAI’s long tradition and experience has always been the leading player in the research and testing of new broadcasting technologies. Backed by this primacy, the Company presents itself as a trustworthy network operator for its customers by implementing and managing the main broadcasting processes: analog and digital, terrestrial and satellite, for audio, video and data signals.

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Terrestrial broadcasting

Rai Way is able to provide terrestrial radio All activities are in line with the technical and television broadcasting services at a standards prescribed at a national and local, regional and national level, having at its international level, with the possibility of disposal over 2,300 sites which enable it to adopting any broadcasting standard that may achieve a coverage of over 99% of the be requested. In addition, Rai Way’s territorial population. organization and the modernity of its infrastructure enable the customer to assign to On the basis of the specific coverage it the control of all the network functionalities requested by the customer, the service and the full range of service management includes: (network management, maintenance, control • network planning; and reporting the quality of the service • design and construction of the distribution provided). network (fiber optic, radio bridge and satellite); • design and construction of the broadcasting network; • design and construction of the infrastructure (civil, electric, technological); • testing the service and making it operational.

Satellite transportation and broadcasting

Rai Way is able to provide satellite transportation and broadcasting at a national and international level using either DVB-S or DVB-S2 technology.

The services it provides envisage: • allocation of broadcasting capacity or technical and contractual support with the satellite operator that is the provider of the frequency band; • design and construction of the up-link chain; • design and construction of the distribution link; • testing the service and making it operational; • management and use of the up-link chain 19 and the distribution link. CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:57 Pagina 20

Flexibility and reliability in the transmissionof audio and video signals for the publishing and news world. .

Transmission

Rai Way constantly follows the evolution of its Transmission Network that is capable of: • combining digital radio bridge links and satellite and fiber optic links in a single network structure; • feeding the radio and television signal broadcasting network and permitting the collection and transportation of the contributions required for production activities.

Rai Way is able to perform the following activities through that network: • distribution, meaning the transportation of national and regional television programs to all the primary broadcasting centers; • contribution, meaning the exchange of programs between the local offices and the production centers of the various customers as key support for the editorial activity of the television networks and newspapers and Italian and international broadcasters; • transportation of voice and data information.

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Booking Our experience at your service.

The first stage in providing transmission services consists of an analysis of the customer’s needs with the aim of identifying the most suitable solution. This analysis provides details of the resources that are needed, which may include, where necessary, the requirement to find transmission facilities that are supplementary to the Rai Way network.

The main audio-video transmission services are of two different types:

• dedicated point-to-point links: this service consists of transporting the customer’s video and audio signals between two set points using Rai Way’s infrastructure;

• permanent urban links: these are links that are in general implemented at an urban level between the customer’s facilities and the Rai Way network;

• occasional network services: these meet the requirement for occasional transmissions or transmissions at fixed intervals of time between two points of the Rai Way network;

• “ad hoc” solutions: these are designed to meet a customer’s specific needs when these do not form part of the set services described above and require a preliminary study to find the most suitable technical solution. These solutions are implemented with the possible aid of resources that are additional to the Rai Way network. 21 CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:57 Pagina 22

With over 2,300 sites spread throughout Italy Rai Way is the ideal partner for businesses that have to deploy a telecommunications network.

Tower Rental

With its portfolio of over 2,300 sites located in capillary fashion throughout Italy, Rai Way is the ideal partner for companies using a business support telecommunications network.

This service allows customers to have access to civil and plant infrastructure for installing radio sites, maintained in accordance with strict quality standards. Rai Way is able to provide the necessary assistance to customers from the preliminary stages through to the activation of the site: from selecting the site position to testing the equipment. Customers can in any case keep control of the various stages of the implementation process by engaging Rai Way to carry out the activities that can be performed on the basis of the assets and know-how in their possession. Included among the customers of these services are the leading fixed and mobile telephone operators, keys sectors of the public administration and local and national radio and

television broadcasters. 22 CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:57 Pagina 23

Hosting Hosting is the Company’s main tower rental service.

Once the site has been identified, the service envisages:

• performing a preliminary feasibility study; • planning feasibility inspections together with the customer; • carrying out site surveys in order to provide the customer with elements useful for assessing the suitability of the site for hosting the positioning of its network; • space on the Rai Way site; • the general maintenance of the site and civil infrastructure (towers, buildings, technological equipment, access roads, etc.).

Rai Way proposes solutions with value Besides having top quality infrastructure, the Company also has a specialized local organization and a sales team capable of providing suitable support to customers in their search for solutions capable of overcoming critical factors with the maximum of flexibility and availability. From selecting sites through to site activation, Rai Way’s Account Manager is always at the customer’s side.

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Rai Way puts its top level know-how, professional resources and specialized instrumentation services at the customer’s disposal.

Network services

Thanks to a long experience in broadcasting gained “in the field”, Rai Way is able to ensure that its customers have access to ad hoc advice, electromagnetic impact measurement services and technical training designed to guide them through the use of specific products.

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Advisory activities NIR services

Building on the successes it has achieved in Rai Way is one of the most prominent entities practice in the rapid conversion to digital of its at an Italian and international level in the field broadcasting network, Rai Way has set out of electromagnetic pollution; its main strengths the possible areas in which it can provide are the instrumentation it has developed over customers with support for their needs, either time and the experience of its people. along the whole of the digitalization process chain or at individual stages. The Company offers the following specialized The main skill focus regards the broadcasting radiation protection services: sector, where Rai Way offers the support of its • NIR (Non-Ionizing Radiation) measurement; staff of experts in the process for setting up a • Advice for environmental disputes and broadcasting network: from the planning of recovery; sites and frequencies through to the • Appraisal support in litigation (as a party- construction and installation of broadcasting appointed expert). equipment, connections and infrastructure.

Technical training

In the training sphere Rai Way proposes open The main training topics can be summarized formulas deliverable in modules that are as follows: designed to foster the most effective and • Digital broadcasting networks; effectual transfer of knowledge and skills for • SDH transmission networks and using the available products and services. management systems; The contents all regard activities in which Rai • DTT, multimedia communications and value- Way has had direct experience for several added services; years; in that sense, the added value provided • Project management, organization and is not only to be found in the specific topics processes; being taught but also in the instructor’s • Maintenance of transmission networks; practical and proactive approach. • Customer satisfaction in broadcasting services.

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Rai Way manages, broadcasts and transmits contributions for the production of programs.

Our customers

Our customers are the best testimonial of our activities and our ability to support the realization and development of a business.Rai Way addresses itself to local, national and international broadcasters, telecommunications operators, the public administration and large-scale companies. Broadcasting Transmission Tower Rental Network Services

Rai Group

Italian and international broadcasters

Italian telecommunications operators Customers

Public administration 28 and corporate customers CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:58 Pagina 29

Activities by customer and service

12% 3% 83%84% 95% 2% 4% <1%

Rai Mobile Other customers Tower Broadcasting Transmission Network operators TV, radio, Rental Services public administration, corporations, other TLC 29

Data based on 2015 revenues CompanyProfileRaiWay40PagENG_Layout 115/07/1514:58Pagina30

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Key numbers

The results achieved by Rai Way demonstrate the Company’s ability to progress in the various sectors while at the same time confirming its objective of being a leading player on the market. From its very first year Rai Way has been able to achieve significant results in terms of revenues, profitability and the enhancement of the value of its investments.

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12M 2015 212,3 Revenues 12M 2014 PF 207,4

0 50 100 150 200 250

Adjusted 12M 2015 109,4 EBITDA 12M 2014 PF 105,1

0 20 40 60 80 100 120

12M 2015 38,9 Net profit 12M 2014 PF 33,6

0 5 10 15 20 25 30 35 40

12M 2015 30,1 30,1 Capex 12M 2014 21,0

0 5 10 15 20 25 30 35

12M 2015 41,6 Net debt 12M 2014 65,5

0 10 20 30 40 50 60 70 80

12M 2015 159,3 Equity 12M 2014 153,8

0 50 100 150 200

Figures are stated in millions of euros. The new RAI service agreements came into effect on 1 July 2014; pro forma figures in 2014 simulate the impact of the new 33 service contracts with RAI as effective from 1st January 2014 CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:58 Pagina 34

Rai Way on the stock market

Following the completion of the Global Offering, since 19 November 2014 Rai Way’s shares have been listed on the Borsa Italiana Stock Exchange.

• Positive share price performance at 31 December 2015 with an increase of 59.9% from the placement and 47.9% during 2015 • Market capitalization as of 31 December 2015 at 1,283.3 euro million • Dividend proposed for 2015 equal to approximately 3.3% of the average market capitalization in 2015

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Shareholding structure and share price performance

Rai Floating

80% 65% 70% 35% 59,9% 60%

65% 50%

40%

30% 41% 20% 65% 13,8% 10%

-10% IPO 16/12/20214 20/01/2015 17/02/2015 17/03/2015 16/04/2015 15/05/2015 12/06/2015 10/07/2015 07/08/2015 04/09/2015 02/10/2015 30/10/2015 27/11/2015 29/12/2015

FTSE Italia All Share Rai Way 35 Analysis of floating capital based on the allocation of the Global Offering post Greenshoe exercise CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:58 Pagina 36

Rai Way and the environment

Rai Way has always considered the environment to be a strategic factor for its growth, encouraging its protection, together with worker health and safety and respect for residents living close to the areas where our equipment is located, all within a context of constant improvement.

Through its certified environmental management system, Rai Way is constantly involved inter alia in the following: • identifying and managing the environmental aspects that characterize its activity with a view to a constant improvement in environmental performance, ensuring full compliance with current European, national and local environmental laws and regulations; • ensuring that its staff are constantly informed and trained in the environmental effects caused by its activities, fostering and supporting the involvement of its personnel at

every level of the organization in order to improve skills, training and awareness 36 regarding the environment; CompanyProfileRaiWay40PagENG_Layout 1 15/07/15 14:58 Pagina 37

• preventing, keeping under control and reducing (where possible) its impact on the environment by adopting suitable operating procedures and assessing environmental conditions with respect to the local context; • ensuring constant compliance with electromagnetic emission legislation through the use of the best technology available at sustainable costs and a network of environmental controls extended throughout the country; • optimizing the use of natural resources through a continuous monitoring of resource consumption.

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Rai Way S.p.A. Registered office: Via Teulada, 66 - 00195 Rome, Italy Share capital: € 70,176,000 fully paid Rome Chamber of Commerce R.E.A. no. 0925733 Registered in the Rome Companies Register 40 Tax code and VAT no. 05820021003 Management and coordination: RAI-Radiotelevisione Italiana S.p.A. with registered office in V.le Mazzini 14, Rome, Italy www.raiway.it