FREEDOM. QUALITY. EXPERIENCE. 2015 STOCK EXCHANGE LISTING 2014 NEW SHAREHOLDER - EI TOWERS ESTABLISHMENT HIGHTEL TOWERS S.P.A. 2012 FREEDOM. QUALITY. EXPERIENCE. 2010 2009 2008 HIGHTEL TOWERS believes in the importance of wireless communications as an enabler of cultural and economic development of individuals and communities. Our Mission is to lead the development of these technologies, providing the foundation for wireless communication to become possible for anyone, anywhere, with the best performance possible. 2005 2004 2003 2001 NEW SHAREHOLDER - TAN HOLDINGS LIMITED COMPANY STATE OF THE ART INFRASTRUCTURES SERVICE BUSINESS UNIT TOWERING EXPANSION HOUSING DEVELOPMENT SITE ACQUISITION ESTABLISHMENT SAN GIMIGNANO - ITALY UNESCO World Heritage Site known as the town of fine towers Tower Company Established in 2001 Market Valuation: €100 mln EVERYTHING YOU NEED IN THE TOWERING INDUSTRY - Towering network OPEX optimization - Services (e.g. Negotiation of passive contracts, site research, etc.) - Design (e.g., co-sharing, new towers, etc.) - Towers Construction - Decommissioning - Maintenance - Lease-back - Co-siting INFRASTRUCTURES HIGHTEL TOWERS manages more than 400 infrastructure consisting mostly of local technological poles or pylons, distributed on the Italian territory and hospitality businesses of transmission facilities and antenna for telecommunication signals. HIGHTEL TOWERS offers its customers complete service for the realization of the sites and implementation of the network: - Identification of suitable locations - Negotiations for acquisitions - Relations with authorities for permits - Design and implementation - Decommission of non-performing infrastructures BUSINESS MODEL In 2014 HIGHTEL TOWERS was partially acquired by the Italian leader of the market Ei Towers (www.eitowers.it) with more than 3000 infrastructures to its credit. They signed a 5 year contract for the development of new networks in Italy and the rest of the world. Ei Towers, which is listed at the Milan Stock exchange, is controlled by Mediaset, the Italian giant of television broadcasting. Recently Mediaset raised 284 million euros ($393 million) from the sale of 25% of Ei Towers. Among the new shareholders the biggest investor was Blackrock, the leading management fund. The TLC market is in continuous evolution. In the past all operators considered strategic its own network. Now the focus is on reducing OPEX and limiting CAPEX for the new infrastructures needed for advanced technologies (4G and higher) THE ‘‘LEASE BACK’’ & ‘‘CO-SITING’’ OPPORTUNITY The network is becoming a “tool” that can (and there is no reason not to) be co-shared with other TLC or Media operators. The future development of the market (5G and cutting edge technologies) requires substantial new investments. The best way to achieve that is optimizing the management of network infrastructure. This new market approach creates important opportunities: HIGTEL TOWERS in fact is currently signing contracts with several international TLC & Media operators for the acquisition of their network with a subsequent “lease back” agreement. Such structure, together with a “co-siting” deal with other operators gives significant advantages minimizing OPEX and CAPEX for all the clients. 4- steps NEW SITES BUSINESS MODEL 1 Site research and permitting - Contact with TLC companies and discussion of infrastructural business plan - Contract for development of new Towers - Authorization process for construction 2 Towers Construction - Tender with several EPC - Definition of projects details - Towers construction subject to definition of final ‘‘housing contract’’ subject to ‘‘site ready’’ - Construction management Towers Leasing - Location Management - Extra services offered such as decommissioning of existing towers, remote security control, implementation of new transmission systems and relevant testing Co-Siting - Lease back of existing networks - Site sharing with different TLC or Media Companies - Optimization of return on Capex - Optimization of Opex for TLC site-sharing company - Marginal Opex saving for 2nd /3rd TLC site-sharing company 4 3 NOTES NOTES Hightel Towers S.p.A. Via della Stazione di San Pietro, 65 00165 - Roma, IT www.hightel.it
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