Fnm S.p.a. · MIL:FNM
Fnm — FY2023 Earnings Presentation
46 slides from Fnm's earnings presentation, Mar 13, 2024
Slide 1: FNM Group FY 2023 Results
FNM Group FY 2023 RESULTS 13 March 2024
Slide 2: An integrated player in transportation and mobility in Northern Italy
An integrated player in transportation and mobility in Northern Italy Management of motorway infrastructure trough a concession expiring in 2028 Motorways • Highway from Milan to Serravalle Scrivia (A7 86Km) • Milan West, East and North ring roads (A50 33Km, A51 29Km, A52 19Km) 185 Km • Pavia West r
Slide 3: Key investments in Associates and Joint Ventures
Key investments in Associates and Joint Ventures 1 JV with Trenitalia (50% stake) active in Rail Local Public Transport Minority investments in Motorway concessionaires active in Lombardy (36.7% stake in APL and 10.9% in TE) 4 2 3 Alternative digital mobility platforms according to MaaC paradigm Roa
Slide 4: Overview, Economic & Financial Results, Outlook & Dividends
Overview Economic & Financial Results Outlook & Dividends Focus on Viridis Appendix
Slide 5: FY 2023 Financial Highlights
FY 2023 Financial Highlights REVENUES ADJ. EBITDA EBIT +2.1% +9.5% +3.6% 605.4 +5.0% 618.1 +12.0% 211.4 101.1 104.7 193.1 Like-for-like1 Like-for-like1 31.9% 34.2% FY 2022 FY 2023 (€mln) FY 2022 FY 2023 (€mln) FY 2022 FY 2023 (€mln) ADJ. NET RESULT GROUP NET RESULT ADJ. NFP +9.9% +18.1% -16.2% 75.6
Slide 6: Motorways - traffic trend on MISE network
Motorways - traffic trend on MISE network (vehicles-km) Full recovery of light traffic to 2019 levels, while heavy vehicles are steadily higher than pre-Covid levels 320 300 280 260 240 220 Light vehicles +1.3% 200 Heavy vehicles 3,115 3,156 2,976 180 2,649 2,117 +6.0% 2,512 2,039 2,355 2,535 160 1,
Slide 7: LPT - mobility demand for bus and rail transport
LPT - mobility demand for bus and rail transport (n. pax) Recovery of demand across all segments but overall LPT traffic still below pre pandemic levels, especially for urban transportation BUS TRANSPORT TRENORD -9.7% -11.4% 77.4 214.4 4.0 69.9 3.7 189.9 58.8 ~ 800K pax/day ~ 700K pax/day 3.4 151.0
Slide 8: Adj. EBITDA evolution
Adj. EBITDA evolution Growth impacted by full traffic recovery in motorways and cost inflation, despite negative effect of the sale of La Linea/Martini and the loss of public contribution on car sharing REPORTED Adj. EBITDA (€ mln) FY 2022 FY 2023 ∆€ ∆% Motorways 128.0 153.6 25.6 +20.0% 20% Ro.S.Co.
Slide 9: FY 2023 Group net result
FY 2023 Group net result Increase Group net result despite change in perimeter and higher D&A, strong rebound of companies consolidated at equity +18.1% +12.4mln (0.8) (13.9) Strong result in 4Q23 from Higher borrowing costs due to Trenord increased discount rate and 80.9 Including negative effects
Slide 10: Adj. EBITDA by segment – Motorways
Adj. EBITDA by segment – Motorways +25.6mln +20.0% Full recovery of traffic back to 153.6 2019 levels, network extension and new service Net movement of the areas concessions renewal fund for €21.1mln resulting from more works performed vs planned 19.0 2.2 (5.5) (2.8) 12.7 Mainly works on Po bridge
Slide 11: Adj. EBITDA by segment – Ro.S.Co. & Services
Adj. EBITDA by segment – Ro.S.Co. & Services -2.8mln -6.2% (1.7) 2.7 45.5 (1.8) Functional to the start of the FNMPAY pilot project. Full release started from • Higher revenues on TILO trains entered into service during 2022 and TAF trains as (1.5) January 2024 a result of revamping activities • Low
Slide 12: Adj. EBITDA by segment – Railway infrastructure
Adj. EBITDA by segment – Railway infrastructure -1.4mln -18.2% Entry into force of the Increase in km production renewed CCNL Autoferro and of the Milan Branch and (1.9) 2.1 higher headcount (+9 FTE) toll rates adjustment 7.7 (1.5) 6.3 • Programme Agreement +€6.8mln (3.9) 3.8 • Service Contract -€1.
Slide 13: Adj. EBITDA by segment – Road passenger mobility
Adj. EBITDA by segment – Road passenger mobility -3.1mln -26.1% +1.2mln +16.4% 0.8 Covid-19 compensations (-€3.8mln), (6.1) additional services (-0.8mln), energy bonus (-€2.5mln), investment grants (+€1.0mln) 11.9 8.6 (4.6) (2.1) 8.5 8.8 0.3 7.3 • Higher unit cost, partially Growth in passengers com
Slide 14: Associates & JV – Trenord
Associates & JV – Trenord Traffic recovery continues to drive improvement in operating performance, new Service Contract with RL from 1st Dec. 2023 • Recovery in demand (especially in • Lower Covid-19 compensations the airport and leisure segment) (11.2mln vs €33.8mln in FY22) HIGHLIGHTS • Change in
Slide 15: Associates & JV – APL
Associates & JV – APL Traffic recovery continues to support operating performance, bottom line impacted by net interest expenses (€mln) HIGHLIGHTS TRAFFIC PERFORMANCE: Growth in revenues compensated by higher staff costs (+2.6mln) due to the +10.4% internalization of activities in 316.6 operations a
Slide 16: FY 2023 Capex analysis
FY 2023 Capex analysis Lower investments mainly driven by delay in rolling stock deliveries and rescheduling of works on motorway Il gruppo in breve € mln 2022 2023 ∆€ Motorways 58.9 26.5 (32.4) Ro.S.Co. & Services 54.9 18.3 (36.6) Railway infrastructure 8.0 5.7 (2.3) Road passenger mobility 26.7 21
Slide 17: Consolidated Cash Flow
Consolidated Cash Flow Strong cash flow generation driven by operating performance and crediting of grants on railway infrastructure 211.4 24.6 (9.3) Net CAPEX: €32.6mln (30.9) (10.0) 174.2 21.0 (72.1) + Assets disposal for €7.0mln + Reimbursement of La Linea intercompany loan for €6.9mln + Dividend
Slide 18: Net Financial Position evolution
Net Financial Position evolution NFP lower than expectations driven by capex slowdown and strong cash flow generation 766.9 (174.2) 642.8 47.3 2.8 (93.0) 549.8 Mainly higher payables for funded investments related to advances on Cash deriving from the grants for railway infrastructure crediting of g
Slide 19: Gross debt composition at 31 December 2023
Gross debt composition at 31 December 2023 Gross debt (€mln) 2% 4% 15% Bond (98.6) Gross debt EIB 3% Gross Debt: 846.5 structure by MISE bank debt €846.5 mln1 instrument Leasing (IFRS 16) 642.8 Other 76% 549.8 302.3 93.0 11% Gross debt Current portion 24.1 o/w MISE NFP maturity Noncurrent portion NF
Slide 20: Maturity structure at 31 December 2023
Maturity structure at 31 December 2023 Debt average life 2.6 years, in line with total assets structure (€mln) Bond EIB Mise bank debt 683.4 55.4 55.4 650.0 8.4 8.4 8.4 47.0 47.0 25.0 2024 2025* 2026 * Excluding the bridge loan for the acquisition of Viridis 20
Slide 21: Overview, Economic & Financial Results, Outlook & Dividends
Overview Economic & Financial Results Outlook & Dividends Focus on Viridis Appendix
Slide 22: FY 2024 Outlook: Financial Targets FY24 vs FY23
FY 2024 Outlook Guidance account for the effects of the Viridis acquisition; investments driven mainly by motorway and renewable energy generation Revenues +1% - 5% YoY overall in line YoY excluding the acquisition of Viridis Financial Targets FY24 vs FY23 Adj. EBITDA +5% - 10% YoY overall in line Y
Slide 23: Proposed dividend distribution
Proposed dividend distribution Dividend confirmed YoY DPS €0.023 per share Total Cash Out €10.0 million Dividend Yield (12/03/2023) { 5.1% } 23
Slide 24: Overview, Economic & Financial Results, Outlook & Dividends
Overview Economic & Financial Results Outlook & Dividends Focus on Viridis Appendix
Slide 25: The rationale of the acquisition
The rationale of the acquisition • Acquisition of an industrial entity having as of now: o Operations started - 47 MW photovoltaic and biogas plants (mainly incentivized) SHORT o Positive EBITDA with good margins (higher than regulated businesses) TERM o Positive operating cash flow generation as of
Slide 26: Target with a material size, operational facilities, a significant pipeline
Target with a material size, operational facilities, a significant pipeline and an experienced team Key assets acquired › The target is an Independent Power Producer (IPP) with diversified sources, predominantly solar-PV, operational facilities and multiple initiatives in pipeline › Structure in pla
Slide 27: Organization structure of Viridis
Organization structure of Viridis Lagi Energia 2006 Srl 13.3% HNF SpA 6.7% 80.0% FNMA SpA 70 MW SOLAR-PV BIOGAS WIND CORPORATE TOTAL 52 MW Operational 2 MW 45 MW incentivized 0 MW 38.5 FTE 54 Incentivized with and Corporate (Conto Energia II and IV MW All-inclusive tariff structure and FER1) + 7 MW
Slide 28: Pro-forma financial highlights at June 2023
Pro-forma financial highlights at 30 June 2023 Consolidated income statement from information document IH23 IH23 Effect of IH23 FNM VIRIDIS acquisition FNM + VIRIDIS (€mln) (€mln) (€mln) (€mln) Revenues 301.6 8.8 - 310.4 EBITDA 100.0 5.0 - 105.0 Adj. NFP 761.7 16.6 149.0 927.3 PROJECTS UNDERAdj. NFP
Slide 29: Plants overview
Plants overview Technology Route to Market Tariff Capacity (MW) COD1 Expiration PV-Solar Conto Energia 2 Feed-in premium 346 €/MW 5.7 4Q 2010 4Q 2030 PV-Solar Conto Energia 4 Feed-in premium avg. 257 €/MW 14.1 3Q 2011 3Q 2031 PV-Solar Conto Energia 4 Feed-in premium 189 €/MW 1.1 1Q 2012 1Q 2032 PV-S
Slide 30: Overview, Economic & Financial Results, Outlook & Dividends
Overview Economic & Financial Results Outlook & Dividends Focus on Viridis Appendix
Slide 31: Incentive mechanisms PV 2007 - 2022
Incentive mechanisms PV 2007 - 2022 2005 - 2007 - 2010 - 2011 - 2012 - 2019 - 2007 2010 2011 2012 2013 today Incentive Conto Energia I Conto Energia II Conto Energia III Conto Energia IV Conto Energia V Decreto FER 1 Only energy produced All the energy All the energy All the energy All the energy Al
Slide 32: Consolidated Profit & Loss
Consolidated Profit & Loss € mln FY 2022 FY 2023 ∆€ ∆% Revenues from sales and servives 567.2 579.6 12.4 +2.2% Other revenues and income 38.2 38.5 0.3 +0.8% Total revenues and other income 605.4 618.1 12.7 +2.1% Operating costs (250.2) (242.7) 7.5 -3.0% Personnel costs (162.1) (164.0) (1.9) +1.2% Ad
Slide 33: Consolidated Profit & Loss – Segment Details
Consolidated Profit & Loss – SEGMENT DETAILS Motorways Ro.S.Co. & Services € mln FY 2022 FY 2023 ∆€ ∆% € mln FY 2022 FY 2023 ∆€ ∆% Toll revenues 255.0 271.0 16.0 +6.3% Rolling stock leasing 52.5 55.2 2.7 +5.1% Other revenues 25.7 26.2 0.5 +1.9% Other revenues 29.6 28.0 (1.6) -5.4% Total revenues 280
Slide 34: Road passenger mobility (like-for-like basis)
Road passenger mobility (like-for-like basis) Excluding the effects of the sale of La Linea/Martini Bus and absence of car sharing public contribution in FY23 LA LINEA/MARTINI + REPORTED PERIMETER car sharing public contribution LIKE-FOR-LIKE € mln FY IQ 2022 FY 2023 ∆€ FY 2022 IQFY 2023 2023 ∆€ FY
Slide 35: Profit (Loss) of companies consolidated at equity
Profit (Loss) of companies consolidated at equity €/000 FY 2022 FY 2023 ∆€ Trenord Srl* (3,553) 8,335 11,888 Autostrada Pedemontana Lombarda (402) (2,895) (2,493) Tangenziali Esterne di Milano Spa** (1,383) (2,127) (744) Nord Energia Spa 1,705 563 (1,142) DB Cargo Italia Srl 2,774 1,360 (1,414) Omni
Slide 36: Profit (Loss) of companies consolidated at equity – Trenord
Profit (Loss) of companies consolidated at equity – TRENORD € mln FY 2022 FY 2023 ∆€ ∆% Ticketing revenues 310.9 383.2 72.3 +23.3% Revenues from Service Agreement 438.7 438.4 (0.3) -0.1% Other revenues and income 82.3 75.5 (6.8) -8.3% Total revenues and other income 831.9 897.1 65.2 +7.8% Operating
Slide 37: Profit (Loss) of companies consolidated at equity – APL
Profit (Loss) of companies consolidated at equity – APL € mln FY 2022 FY 2023 ∆€ ∆% Toll revenues 42.3 44.4 2.1 +5.0% Other revenues and income 4.9 5.9 1.0 +20.4% Total revenues and other income 47.2 50.3 3.1 +6.6% Operating costs (16.6) (17.0) (0.4) +2.4% Personnel costs (8.2) (10.8) (2.6) +31.7% E
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet € mln 31/12/2023 31/12/2022 ∆€ Inventories 13.4 12.1 1.3 Trade receivables 171.0 153.0 18.0 Other current receivables 95.9 85.8 10.1 Current financial receivables 3.3 8.9 (5.6) Contractual assets 10.2 - 10.2 Financed investment receivables 49.2 47.6 1.6 Trade payables (220
Slide 39: Consolidated Balance Sheet – NFP composition
Consolidated Balance Sheet – NFP composition € mln 31/12/2023 31/12/2022 ∆€ Cash and bank deposits (302.3) (194.6) (107.7) Current financial debt 178.0 140.6 37.4 Current Net Financial Position (Debt/-Cash) (124.3) (54.0) (70.3) Non-current financial debt 767.1 820.9 (53.8) Adj. Net Financial Positi
Slide 40: Net CAPEX breakdown
Net CAPEX breakdown € mln FY 2022 FY 2023 ∆€ Motorways 58.9 26.5 (32.4) Ro.S.Co. & Services 54.9 18.3 (36.6) Railway infrastructure 8.0 5.7 (2.3) Road passenger mobility 26.7 21.6 (5.1) Gross CAPEX made by FNM 148.5 72.1 (76.4) Railway infrastructure (managed only) 63.1 195.3 132.2 Total Gross CAPEX
Slide 41: Rolling Stock Purchase Programme 2017-2032
Rolling Stock Purchase Programme 2017-2032 Investments managed on behalf of Regione Lombardia Progress of Rolling Stock delivery 144 450 425.4 150 400 350 100 86 300 287.3 260.9 250 50 39 14 200 16 19 20 5 150 2 4 26 24 114.5 9 20 0 4 100 69.7 2019 2020 2021 2022 2023 50 Cumulated deliveries Alstom
Slide 42: FNM Group | ESG targets: Pillars
FNM Group | ESG targets: Pillars Targets Metrics 2022 2023 Target 2025 Entry in the motorway business Vehicles-km driven on the motorway/year 3.0 bln vkm 3.2 bln vkm 3.1 bln vkm ✓ Strengthening of road LPT Passengers transported by bus services/year 59.09 mln pax 69.9 mln pax 80 mln pax Mobility Cen
Slide 43: FNM Group | ESG targets: Enablers
FNM Group | ESG targets: Enablers Targets Metrics 2022 2023 Target 2025 Innovation and Continuos innovation Resources for technological/digital R&D projects cum. €5.1 mln cum. €8.1 mln € 11 mln (cum 21-25) data management Energy efficiency Emissions and consumption reduction CO2 emissions Scope 1 an
Slide 44: Shareholders and share performance
Shareholders and share performance Share price @ 12-mar-24: €0,45 { } { } Share capital profile Shareholders’ structure Market capitalization @ 12-mar-24: { } €195,7 mln { } 27.7% Regione Lombardia N. of shares 434.9 mln Ferrovie dello Stato Average traded volumes (last 30 days) 234.618 orders 57.6%
Slide 45: Glossary
Glossary ▪ Adjusted EBITDA: it is represented by EBITDA (earnings for the year before income taxes, of the other financial income and expenses, of depreciation, amortization and impairments of fixed assets), excluding non-ordinary expenses and income, such as: (i) income and expenses deriving from r
Slide 46: Contacts
Contacts Valeria Minazzi Investor Relations Director Fixed line: +39 02 8511 4302 valeria.minazzi@fnmgroup.it investor.relations@fnmgroup.it