Iliad S.A (ILIAD) Acquisition presentation summary

Deal rationale and strategic fit

• Addresses a saturated and declining French telecom market, enabling scale and renewed investment capacity.

• Reinforces a disruptive market position and strengthens financial profile with over 8 million new subscribers and additional spectrum.

• Enhances ability to innovate, invest in AI, and improve network resilience and cybersecurity.

• Consortium structure ensures operational expertise and service continuity for SFR customers.

Financial terms and conditions

• Enterprise value of €20.35 billion for the transaction, with iliad's share at €6.2 billion.

• Earn-out up to €0.65 billion and break-up fee up to €0.2 billion.

• €6.5 billion financing secured for the deal.

• Potential downward price adjustment based on SFR's financial performance up to closing.

Synergies and expected cost savings

• Over €0.5 billion in annual run-rate synergies targeted within five years post-closing.

• Expected €0.9 billion additional OFCF, with implementation costs of ~€1.4 billion.

• Significant economies of scale and industrial synergies from network and IT integration.