Array Digital Infrastructure (AD) Wells Fargo 8th Annual TMT Summit Conference summary

Strategic review and asset monetization

• Entered agreement in May to sell wireless operations and 30% of spectrum to T-Mobile, expected to close mid-2025 pending regulatory approval.

• Sold $1B of 850 MHz spectrum to Verizon in October, contingent on T-Mobile deal closing.

• Announced $1.018B spectrum sale to AT&T in November, also contingent on T-Mobile transaction.

• Total gross proceeds from asset sales expected to be $6.5B, with net proceeds under $3B after taxes and debt repayment.

• Retained 70% of spectrum, 4,400 towers, and minority stakes in Verizon and AT&T partnerships.

Regulatory and operational updates

• Regulatory process for T-Mobile deal is on track, with no concerns and expected mid-2025 close.

• Change in U.S. administration is not expected to impact deal approval.

• Business continues as usual until transaction closes, with increased promotional activity improving subscriber results.

• Upgrade rates remain down, but churn has decreased, indicating customer satisfaction.

Tower business outlook

• Tower revenue growth slowed in 2023-2024 due to lower carrier CapEx, but long-term demand expected to double in five years.

• November saw a pickup in new applications; 4,400 towers with significant capacity for new tenants.

• Post-T-Mobile deal, tenancy ratio will drop but is expected to recover as towers are decommissioned or new tenants added.

• 30% of towers are in unique locations with no other carriers within two miles, offering growth potential.

• EBITDA margins projected to exceed 50% within 3-5 years post-transaction.