Jun Investor Presentation

Transcription

1 Jun 2018 Investor Presentation

2 A Unique Asset Leading Air Traffic Control Service Provider Only ANSP worldwide listed on a stock exchange Sole provider of air traffic control and navigation services in Italy entrusted by national law without time limit Supportive pan-european regulatory framework with traffic volume and inflation protection mechanism providing revenue stability Strong and resilient cash flows with high cash conversion enabling attractive shareholder returns Proprietary Infrastructure Covering Entire Italian Airspace Controlled air space 751,742 Km 2 of which Italian land territory 302,071 Km 2 Airports 45 Area Control Centres Primary and secondary radars 4 59 Surface radars 10 VOR and DME systems Meteorological radars 140 ILS 41 Multilateration systems High altitude remote radio centers Upside from small but rapidly growing non-regulated business 882m of revenue (1) and 284m EBITDA reported in 2017 Regulated revenue 98.3% En-route 74% Terminal 26% Non-regulated revenue 1.7% Source: ENAV, Eurocontrol. Note: Data related to ENAV Group FY (1) Total ENAV revenues net of contribution. 1

3 Core Regulated Business En-route and Terminal Services (Regulated) ENAV s core business is to manage the regulated Air Traffic Control Services ( ATCS ), for which it is entrusted by law, 24 hours a-day, 365 days a-year: En-route services: handling of air traffic crossing Italian airspace managed from 4 Area Control Centres located in Brindisi, Milan, Padua and Rome Terminal services: assistance during the phases of approach, takeoff and landing from 45 Control Towers located throughout Italy and divided into 3 charging zones ENAV Provides ATCS to more than 1.6m flights per year (with peaks of up to 6,575 per day) ENAV generates regulated revenue by charging the users of its airspace (planes departing and arriving at Italian airports, as well as flights crossing the Italian airspace) a regulated tariff on the volume of airspace used (1) Terminal En-route Terminal Cruise En-route Origin Airport Tower Proximity to Origin Airport Area Control Proximity to Destination Airport Destination Airport Tower (1) Traffic volume is expressed in service units, which are a function of distance travelled within the airspace and certified aircraft weight for en-route and of aircraft certified weight for terminal. 2

4 Developing Non-regulated Business and Future Technologies Leveraging on Strong Technical Capabilities to Provide Non-regulated Services to Third Parties ENAV provides supporting services to other Air Navigation Service Providers (ANSPs) on a commercial basis, forming an Aeronautical Information independent source of revenue which is not regulated ENAV leverages its significant experience and reputation for Airspace Design Maintenance Flight Inspections promoting development projects worldwide, pursuing further opportunities for growth The Academy Training R&D Meteorological Services ENAV currently delivering services in Malaysia, Lithuania, Romania, Saudi Arabia, Albania, UAE and Libya Aeronautical Operational Information System Investments in New Technologies put ENAV at the Forefront of Innovation in ATC Aireon is the company set to develop the first global air traffic satellite surveillance system ENAV is one of the main shareholders with a 10% (1) stake Prevents air traffic blind spots and allows an extensive control of all the global routes. Increases air traffic volumes, route optimisation and exceptional levels of flight safety and efficiency Successful launch and deployment of first 50 satellites hosting Aireon s space-based automatic dependent surveillance broadcast (ADS-B) system Today 30% nominal coverage (2018) 100% nominal coverage (1) Stake post acquisition of 10% shareholding of NATS in Aireon in May

5 Operating in a Favorable Market Environment 4

6 Minutes of En-route Delay per Flight Fifth Largest European Market, Delivering Best In Class Performance 5 th Largest Air Navigation Service Provider in Europe Highlights En-route Service Units ( 000) Critical Italian aviation asset entrusted by national law without time limit 5 th Largest Air Navigation Service (1) Provider in Europe Source: Eurocontrol Best-in-class Performance Quality Leader in Europe (2017) performance in terms of Actual vs. Target 1 +82% 0,959 0,715 0,48 0,4 0,4 0,23 0,312 0,11 0,169 0, (2) 5 quality and safety of services Technological leadership enhanced through strategic investments Actual minutes of en-route ATFM delay per flight Target minutes of en-route ATFM delay per flight Source: ENAV elaborations on third parties data Notes: (1) Refers to continental Spain. (2) Refers to DFS only 5

7 Benefiting From Long Term Growth Trends of Global Aviation Market Global Traffic Increase Supporting Service Units Growth in the Medium-long Term World annual RPK (1) (trillion) Air traffic has doubled every 15 years Source: Airbus Global Market Forecast Growing Horizons Italian En-route Service Units ( 000) E Source: Eurocontrol, February 2018 Website: SU growth - Italy vs. European context Notes: (1) Revenue passenger kilometre. (2) Refers to traffic within Countries airspace. 3,0% European Traffic Growth Service Units CAGR (2) 2,4% 2,3% 2,2% % CAGR Airbus expects air traffic to double in the next 15 years 1,9% Spain Italy Germany France UK Highlights Independent sources indicate a strong expected global growth in traffic Italy ideally positioned to benefit from growth in global traffic Traffic in Italian airspace has rebounded in 2016, 2017 and beginning of 2018 Second fastest growing market among major countries in Europe based on forecasts for the period

8 Traffic breakdown (by Service Unit) Traffic breakdown (by Service Unit) Diversified Customer Base and Business Mix Provide Resilient Results Diversified Business Mix Highlights Overflight 39% En-route National 19% Terminal National 34% Diversified business mix with majority of revenues from En-route services and significant revenues from Terminal services International 42% International 66% Volume Risk Protection Provides Revenue Resilience Over 80% of en-route traffic from international and over-flights, resulting in limited exposure to Italian GDP Italian En-route Traffic YoY Change 2.4% (1.7%) 1.6% Revenue CAGR 4.0% Top 10 Customers (2) Diversified customer base from different geographies % Collection managed by Eurocontrol on a monthly basis Total net revenue ( m) Stable revenue profile even in challenging macroeconomic scenario Source: ENAV. Notes: (1) Overflights defined as international traffic transiting over Italian territory (not departing / landing in Italy). (2) Based on Enav 2017 service units. 7

9 European Regulatory Framework Providing Long-term Visibility (1/2) En-route (75% of regulated revenues 1 ) Traffic Risk Inflation Risk Opex Capex/D&A Mitigated (70% protection between ±2% and ±10%) (full protection for traffic beyond ±10%) Full cost recovery Upside on Opex efficiencies above regulatory target fully retained by the Company Upside on Capex efficiencies above regulatory target fully retained by the Company Potential upside Visibility through 5-year regulatory period Strong traffic risk mitigation Significant room for upside on Opex and Capex in regulated business Full inflation risk protection Additional revenue upside / downside on performance quality targets (minutes of delay per assisted flight) Performance quality (Bonus / Malus) Bonus / Malus mechanism depending on achievement of quality targets Full upside from non-regulated activities (1) Based on 2016 total en-route and terminal revenues pre-balance including exemptions 8

10 NATIONAL LAW PERFORMANCE AND CHARGING SCHEME European Regulatory Framework Providing Long-term Visibility (2/2) Terminal (26% of regulated revenues 1 ) Charging % of regulated Zone revenues (1) Description Airports Charging regulation Difference from en-route Terminal zone 1 5% Airports with more than 225,000 IFR (2) movements Rome Fiumicino Subject to traffic risk sharing and cost risk from 2015, full protection on inflation Same as en-route Terminal zone 2 7% Airports with more than 70,000 and less than 225,000 IFR (2) movements Milan Linate Milan Malpensa Venice Bergamo Subject to cost risk from 2015 (full protection on traffic and inflation) Same as en-route but full traffic protection Terminal zone 3 14% Airports with less than 70,000 IFR (2) movements Other airports: 40 ENAV 4 Italian Air Force Subject to the national regulatory framework (full cost recovery) including inflation Full cost recovery (1) Based on 2017 total en-route and terminal revenues pre-balance including exemptions (2) Instrumental Flights Rules 9

11 Focus on Efficiency to Drive Cash Flow and Shareholder Returns 10

12 Key Revenue Drivers and Components Net revenue (1) breakdown m o/w Balance: + 18m o/w Balance: o/w Balance: (17)m + 16m % 25% % En-route Terminal Other Main drivers of ENAV s net revenue are En-route and Terminal businesses: En-route revenue is driven by traffic, in terms of service units i.e. a function of the certified weight of the aircraft and distance flown in the Italian airspace, multiplied by the tariff applied for the year (for per SU) Terminal revenue is driven by traffic, in terms of service units i.e. a function of the certified weight of the aircraft, multiplied by the different tariffs applied for each of the 3 Terminal zones Non-regulated revenue includes activities provided on a commercial basis in Italy and abroad examples include flight inspections in Saudi Arabia, and Romania; training and certification for Libyan air traffic controllers; airspace design in UAE, independent checking consultant activities for the Kuala Lumpur ACC in Malaysia and the building of a control tower in Mitiga airport in Libya, contracts in Albania and Morocco The balance component includes the net effect of traffic risk protection, inflation protection, bonus on performance, offset by the negative reversal of balance applied to the tariff of the year Other Operating Revenue mainly includes opex contributions for Safety and Security (under law 248/05) (c. 30m per year), equipment grants ( 10m per year), European financing related to common projects ( 3m in 2017, 9m in 2016) (1) Sales net of capex contribution ( 9.7m in 2017, 9.7m in 2016, 9.3m in 2015) (2) Other includes balance, tariff stabilization funds in 2015, non-regulated activities, opex contributions, exemptions and other income. 11

13 Enhancing Cash Flow Generation Through Cost Efficiency m Significant Reduction of External Opex (4.0)% CAGR% IPO costs Efficiency plan, initiated prior to IPO, delivering solid results with an underlying reduction of 4% over the last 3 years. Main external cost items include: Maintenance costs reduced by almost 4m in 2017 vs 2015 Telecommunications & Utilities cost reduced by 2m over Insurance contract renegotiated in June 2016 with an annualized run rate saving of over 4m with the same coverage Purchasing costs reduced by 2m over mainly thanks to more efficient spare parts management Eurocontrol contributions charges based on billed traffic and included in tariff m (Capitalized internal works) Personnel Costs Stable (30) (29) (29) Personnel Cost stabilized over last couple of years despite growth in traffic in 2016 and 2017, wider perimeter of airports managed and significant expansion of non-regulated business Approx. 4,180 employees, expected to remain stable notwithstanding increase in traffic and non-regulated business Voluntary redundancy plan initiated in 2015 and finalised in first half of 2017, significant reduction of managerial staff New hirings mainly focused on low traffic volume airports with lower unit cost of staff on these airports Labor contract expired at end of 2016, renewal discussions at early stages, old contract remains in force until new one is in place 12

14 High Cash Conversion Confirms Solid Dividend Capacity Growing and Resilient Cash Flow Generation Growing EBITDA and Profitability Normalizing Capex vs. Historical Levels (1) 8.0% EBITDA CAGR in % 32,2% Margin (2) 28,6% 30,3% m m Normalised Operating Cash-Flow (3) and Normalized Equity FCF (4) Evolution m OpCF Normalized Equity FCF Cash conversion (5) (%) 56% 56% % Significant EBITDA growth over last 3 years, with growing EBITDA and margin despite the weak macroeconomic environment Capex normalised at levels in line with previous years Resulting in a strong and increasing operating cash flow (3) m Increasing Historical Dividend Distribution 180m extraordinary dividend paid in August % A 2014A 2015A 2016A 2017A Growing historical dividend distribution with clear dividend policy going forward of no less than 80% of Equity FCF (6) 101m dividend paid in 2018 ( per share), on 2017 results Source: ENAV. Note: (1) Non financial capex, excluding M&A Capex ( 9m in 2015 related to Aireon acquisition). (2) Margin based on revenues net of capex contribution. (3) Measured as EBITDA minus non financial capex. (4) Normalized Equity FCF calculated as normalized net Income (net of IPO costs post tax) + D&A non financial capex. (5) Cash conversion defined as (EBITDA non financial capex) / EBITDA. (6) Equity FCF calculated as normalised net income (excl IPO costs post tax) + D&A gross of capex contribution normalized capex. 13

15 Business Plan 714

16 Business Plan Strategic review of ATC management through technological and operational evolution and new organizational model aimed at increasing performance, productivity and competitiveness while maintaining the paramount target of maximum safety Simplified organizational structure Increased professionalism of personnel More effective and efficient Opex and Capex planning and allocation Launch new operating model to increase productivity, competitiveness and cost optimization Strengthen ENAV s leadership role through development of future-proof ATC platforms Expand ENAV s position in nonregulated business Exploit drones / UAV market opportunity 15

17 New Operating Model Target operational structure with 2 ACC s and 2 remote tower hubs Milan ACC Padua R-TWR CC 2 ACC 2 ACC, one in Rome and one in Milan, to manage en-route traffic; integration in 2 ACCs of approach radars currently in towers 2 HUB R-TWR CC ACCs in Brindisi and Padua transformed into Remote Tower Hubs to manage certain airports Brindisi R-TWR CC Rome ACC «Right-sizing» of organisation and more balanced workload through active management of personnel turn-over, without layoffs but leveraging retirements and voluntary exits Hiring of new resources to partially replace exits Overall headcount expected to decline by about 300 units by 2022 Material investments in training and requalification of personnel to support new competences required Higher critical mass for ACC e TWR to better manage activity fluctuations Improved level of service on smaller airports with low traffic Leverage expertise in Brindisi and Padua maintaining material presence 16

18 Leading Development of Future-proof ATC Platforms In line with requirements defined by Single European Sky, ENAV will implement, or extend the use to its entire airspace, of new cutting edge technolgies and systems aimed at maximising performance while ensuring utmost level of safety Main Initiatives Extend the use of Data Link throughout the airspace, which enables the communication between the ground and the aircraft to be managed via a data connection without the need to communicate verbally through radio; Implementation of MTCD system (Medium Term Conflict Detection), will support the air traffic controller in the detection of possible traffic conflicts with a significant lead time in order to enable a timely route re-planning; Development of new FDP (Flight Data Processor), leveraging on new technologies to deploy a new approach to development and maintenance Development and implementation of Remote Tower technology in Brindisi hub Development of full IP MPLS operational network (E-Net2) for ground-ground coomunications All the of the initiatives planned will be rolled-out on the new configuration in order to optimize expenditure and deployment times (e.g. implementation of new ACC systems above only on Rome and Milan ACCs) 17

19 Expand Position in Non-regulated Business Leverage on business volume expansion to grow non-regulated revenues, and improve margins through productivity increase through portfolio of services offered: Commercial Development Department s Mission Development of products and services for non-regulated market Customer Support development and coordination End-to-end management of sales process Management of thirdparty services programs (Project Management) Aireon Strategic positioning of ENAV in international satellite technology CNS with key global partners, 10% stake held by ENAV ENAV to leverage Aireon service delivery point in Ciampino to promote its technical and commercial services and know-how Potential for ENAV to work alongside Aireon in implementation of platform for receipt of signals for small/medium ANSPs that will use this technology, with positive impact on non-regulated revenues Dividends from Aireon expected from 2021, low double-digit IRR Explore selective M&A to further accelerate growth on a non-organic basis 18

20 Exploit UAV Market Opportunity Based on agreement with national regulator (ENAC) ENAV is entrusted to authorise and control UAV flights within the airspace, charging a tariff for these services ENAV has selected the industrial partner with which it is setting up a NewCo, of which it will hold 60% stake, in order to: Develop an Air Traffic Management system for UAV (UTM) able to support flight operations in full control and safety Build a front-end/back-end application to handle the registration and control of UAVs within the regulatory framework defined by ENAC Develop «first-mover» advantage in provision of these services in the Italian market, define the standards and become preferred partner for ENAC Develop a UTM with advanced capabilities (BVLOS management and Autonomous Flight), act as enabler for innovative services and promote new business models to its customers 19

21 Business Plan Targets Low single-digit Net Revenue CAGR over Non-regulated Revenue, including UAM, of 35m in 2022 Cost development over lower than inflation EBIT margin at 17-18% in 2022 Capex of 650m over Dividend growth of 4% per year, starting from 101m dividend paid in 2018 (on FY 2017 results) 20

22 A Resilient and Attractive Story Natural monopoly entrusted by national law without time limit Exposed to long term growth trends of global aviation market Resilient business model with volume and inflation risk protection and diversified customer base Supportive pan-european regulatory framework providing long term visibility and room for upside Growing core en-route and terminal businesses leveraging on positive traffic growth outlook Developing non-regulated business with new contracts signed in key markets Maintain leadership role in ATM innovation with pipeline of new technologies Enhance cash flow through cost efficiency and capex normalization Playing active role in the European air transport ecosystem Deliver Attractive Return to Shareholders 101 m dividend paid in 2018 (based on 2017 results) equal to per share, up 6% YoY Note: (1) Equity FCF calculated as net income + D&A gross of capex contribution normalized capex. No less than 80% of the Equity FCF (1) for the following years, 4% DPS annual growth expected for

23 Appendix

24 Overview of Customer Base Well Diversified Customer Base (1) % 14% 11% 12% 6% 6% 3% 4% 3% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% 1% 2% 2% 2% 2% 2% 1% 2% 2% 2% 1% Other Airlines 42% 43% Commentary Broad customer base which includes carriers from diversified geographies Balanced exposure towards low-cost and full-service airlines Empty routes get quickly taken up by competitors Collection managed by Eurocontrol on a monthly basis En-route services can be discontinued by the competent Authorities to carriers who do not pay Eurocontrol Source: ENAV Group FY Note: (1) Based on ENAV en-route service units 23

25 Reference Regulation Key Principles of Tariffs The system adopted by all Air Navigation Service Providers of the Member States provides for the payment of a tariff for both en-route and terminal services Tariffs are determined as planned costs divided by planned traffic volumes (measured as Service Units ): Tariffs Planned Costs Planned Service Units Tariffs are calculated as a result of the ratio between costs of the relevant entities (ENAV, Eurocontrol, ITAF and ENAC) and Service Units Costs include personnel, other operating costs and D&A, plus the agreed cost of capital This applies to both en-route and terminal services Service Units ( SU ) are a conventional indicator, that considers, for en-route the product between distance flown and weight, and for terminal the weight factor only Over the 5-year regulatory period (currently RP2: ) tariffs are determined on the basis of a cost efficiency target level agreed with the European Commission, taking into account also expected inflation and traffic expected growth Tariffs, multiplied by actual traffic volumes (actual SU) lead to regulated revenues RP1 stands for Reference Period 1 and RP2 for Reference Period 2. 24

26 En-route Tariff Chargeable Costs Total Cost Base calculation (chargeable costs) Determined costs breakdown (2017) A ENAV Determined costs Labour + Other Opex + Eurocontrol costs D&A Enav costs ~ 90% Non-Enav costs 10% B C = A + B Cost of capital Non-ENAV Determined costs (ITAF + ENAC) Total Determined Costs Labour + Other Opex + Eurocontrol costs 65% D&A 16% Cost of capital 9% D Balance reversal E = C + D Chargeable costs Total Determined Costs Planned SU = Determined Unit Costs (DUC) (2) Chargeable Costs Planned SU = Applicable tariff Cost efficiency target is applied to DUC in real terms (1) Timing of set up Beginning of regulatory period (for all the RP) November of each year (year n+1) Applicable Tariff x Actual SU x % Applicable to ENAV (3) = En-route revenues (4) (1) Please see slide En-route Tariff Efficiency Target for DUC in RP2 for additional details (2) In nominal terms. Please see slide En-route Tariff Efficiency Target for DUC in RP2 for additional details (3) I.e. excluding % referring to ITAF + ENAC (4) Including exemptions 25

27 Performance Plan: key economic assumptions (1) En-route Tariff Efficiency Target for DUC in RP2 The level of efficiency, agreed with the European Commission and officially approved via the Executive Decision of European Commission 599/2016, is on average 3.3% per year in the period (DUC in real terms) Based on planned inflation, DUC (nominal) would decrease on average by 2.0% per year Considering the planned traffic increase based on regulatory projections (CAGR %), Determined Cost base (ENAV, Enac and ITAF) is expected to grow at 1.5% in nominal terms 2014 (2) CAGR Total Determined Costs ( m) (A) % Planned SU (m) (B) % DUC - Nominal terms ( ) (C) = A/B (2.0%) Planned Inflation 1.0% 1.1% 1.3% 1.5% 1.6% Inflation Index (2009=100) (D) % DUC - Real terms 2009 ( ) (E) = C/D (3.3%) Source: Executive Decision of European Commission 599/2016. (1) In compliance with regulation setting guidelines for the calculation of performance and tariffs (EU Reg. 390/13 and 391/13). (2) Target are defined for period, considering 2014 as the starting point. 26

28 The Balance Mechanism Year N: Economic Effect Year N+2: Financial Effect Step 1 Step 2 (At the closure of the Financial Statements) Define the Applicable Tariff as: Planned Costs Planned Traffic Balance (e.g. +10 under recovery) VS Planned Costs Planned Traffic Planned Costs Actual Traffic Step 1 Step 2 (At the closure of the Financial Statements) Balance (e.g. +10 under recovery) Define the Applicable Tariff as: Planned Costs + Balance (+10) Planned Traffic Report in the P&L and Cash Flow the balance accounted two years before Profit & Loss Profit & Loss Other revenues Balance + 10 Other revenues Balance N Cash flow impact Cash flow impact Cash flow Balance 0 Cash flow Balance N

29 Traffic Balance Key principles Deviation between planned traffic from Performance Scheme and current traffic leads to a traffic risk borne: Entirely by ENAV if the delta is within the +/- 2% range 30% by ENAV and 70% by airlines if the delta is within: -2% / -10% or +2% / +10% 100% by airlines if the delta is < -10% or > +10% Impact Deviation of Planned and Actual Traffic En-route Traffic in Italy: Planned Traffic set up by the regulator vs. Current Traffic Service units (m), % Delta traffic vs Performance Scheme Full cost recovery 70% airlines 30% ENAV -10% Traffic risk -2% -0% +2% Dead band (100% ENAV) Full cost recovery +10% 70% airlines 30% ENAV > +10 p.p. +2 p.p. +10 p.p. -2 p.p. +2 p.p. -2 p.p. -10 p.p. < -10 p.p A 2015A 2016A 2016F 2017A 2017F 2018F 2019F Performance Scheme Historical traffic volumes Source: ENAV elaborations on Eurocontrol data. 28

30 Historical Income Statement m 2015A 2016A 2017A CAGR Net Sales % En-Route % Terminal % Other (1) (32.8)% Operating costs (607) (610) (598) (0.7)% Personnel costs (476) (478) (478) 0.2% Other net operating costs (131) (132) (119) (4.7)% EBITDA % % Margin 29% 30% 32% % Growth 9% 5% 11,3% D&A (146) (142) (140) Capex contribution Provisions and writedowns (12) (5) (7) EBIT % % Margin 11% 13% 17% % Growth 28% 25% 26% Net finance expenses 2 (2) (3) Profit before income taxes % Income taxes (30) (38) (42) % of profit before taxes 31% 33% 29% Profit for the year % % Growth 65% 16% 32.9% Enav tax rates: 27.5% IRES down to 24% in % IRAP (1) Other includes balance, tariff stabilization funds, non regulated activities, opex contributions, exemptions, European financing and other income. 29

31 Revenues, Net Sales and Opex Overview m 2015A 2016A 2017A Revenues Capex contribution Net Sales (1) % Growth 1.7% 1.8% 1,9% En-Route Terminal Other Balance Stabilization funds Non regulated activities Other net revenues Opex contributions Route and terminal exemptions European financing Other income Operating costs % Growth (0.9%) 0.6% -2% Personnel costs Other costs, net Services costs Purchasing costs Costs of rents and leases Other operating costs Capitalized internal works EBITDA (1) Revenues net of capex contribution. 30

32 Balance Sheet and Capitalisation as of December 31, 2017 Solid capital structure and financial metrics providing strong financial and operating flexibility Financial assets include stake in Aireon for a total investment of USD 61mln, fully paid in. Debt mainly composed by bond issued in August 2015, due in 2022, as well as European Investments Bank and Unicredit facilities Maturity Current (<1 Non-current year) Total debt outstanding/cash ( m) Total Debt Cash & Equivalents 263 Financial Receivables 0,3 Net Debt 117 Net Debt / 2017 EBITDA 0.4x m (65) (117) (117) (1) (2) (3) Net Fixed Assets Financial Assets Net Operating WC Net Funds Other Net Invested Capital Net debt Net Equity (1) Net fixed assets include tangible and intangible assets (2) Net funds include employee benefits and provision for risks (3) Other includes other current and non-current assets and liabilities 31

33 Historical BS m 2015A 2016A 2017A Property, plant and equipment 1,084 1,056 1,028 Intangible assets Investments Other non-current assets and liabilities Liability for employee benefits (58) (57) (56) Net fixed capital 1,250 1,242 1,164 Inventories Trade receivables Trade payables (128) (133) (131) Provisions for risks and charges (14) (11) (9) Other current assets and liabilities (124) (167) (135) Net working capital 29 (23) 72 Net invested capital 1,279 1,220 1,237 Shareholders' equity 1,091 1,120 1,120 Net financial position Total funding 1,279 1,220 1,237 32

34 Disclaimer This presentation may contain certain forward-looking statements that reflect the Company s management current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward looking statements are based on Enav S.p.A. s current expectations and projections about future events. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Enav S.p.A. to control or estimate precisely, including changes in the regulatory environment, future market developments, and other risks. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. Enav S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation. The information contained in this presentation does not purport to be comprehensive and has not been independently verified by any independent third party. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation does not contain an offer to sell or a solicitation of any offer to buy any securities issued by Enav S.p.A.. 33