Enav S.p.a. · MIL:ENAV
Enav — Investor Presentation (July 2021)
32 slides from Enav's investor presentation, July 2021
Slide 1: Investor Presentation
Investor Presentation Jul y 2 0 2 1
Slide 2: A Unique Asset
A Unique Asset Leading Air Traffic Control Service Provider Proprietary Infrastructure Covering Entire Italian Airspace Controlled air space 751,742 Km2 ▪ Only Air Navigation Service Provider (ANSP) worldwide listed on of which Italian land a stock exchange territory 302,071 Km2 Airports 45 ▪ Sole p
Slide 3: Fifth Largest European Market, Delivering Best in Class Performance
Fifth Largest European Market, Delivering Best in Class Performance 2020 En-route Service Units (‘000) 8,547 ▪ Critical Italian aviation asset 6,887 entrusted by national law 5,099 without time limit 4,437 3,990 ▪ 5th largest Air Navigation Service Provider in Europe (2) (1) Performance Quality Lead
Slide 4: Core Regulated Business
Core Regulated Business En-route and Terminal Services ▪ 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
Slide 5: Developing Non-regulated Business and Future Technologies (1/4)
Developing Non-regulated Business and Future Technologies (1/4) ENAV Group proactively looks towards the future, seeking worldwide opportunities to develop innovative technologies for ATC EUROPE ASIA AFRICA OCEANIA AMERICAS Blue countries: ENAV Group presence AFRICA: Botswana, Egypt, Kenya, Libya, M
Slide 6: Developing Non-regulated Business and Future Technologies (2/4)
Developing Non-regulated Business and Future Technologies (2/4) Strategic Rationale Main Products & Services ▪ On July 18, 2019, we finalized the ▪ IDS AirNav provides a range of acquisition of IDS AirNav that offers products, consultancy services and a comprehensive set of air Deal Details training
Slide 7: Developing Non-regulated Business and Future Technologies (3/4)
Developing Non-regulated Business and Future Technologies (3/4) Leveraging on Strong Technical Capabilities to Provide Investments in New Technologies put ENAV at the Non-regulated Services to Third Parties Forefront of Innovation in ATC ▪ ENAV provides supporting services to other ANSPs on a ▪ Aire
Slide 8: Developing Non-regulated Business and Future Technologies (4/4)
Developing Non-regulated Business and Future Technologies (4/4) Timing Mission Based on agreement with national regulator ▪ D-Flight is developing and implementing a specific air traffic control Aug 2016 (ENAC) in August 2016, ENAV is entrusted to system for UAVs (Unmanned Aerial Vehicles), by setti
Slide 9: Sustainability Performance in 2020
Sustainability Performance in 2020 COMMUNITY HIGHLIGHTS 104,565 hours of About €77 million of cash Europe's leader for punctuality with 0.007 min of ATFM operational in-house and for investments in infrastructures out delay allocated en-route third parties training of a total of €91.5 million CAPEX
Slide 10: ENAV's Path to Sustainability
ENAV’s Path to Sustainability ENAV strives to combine the excellence achieved in its core business with an increasingly sustainable approach in order to create value for all stakeholders Stakeholder Sustainability integration Engagement 2019 into strategies Corporate Giving New ERP Sustainability No
Slide 11: Sustainability Plan 2021-2023
Sustainability Plan 2021-2023 The Sustainability Plan 2021-2023 defines a series of actions, based on the United Nations 17 Sustainable Development Goals (SDGs), and includes 33 targets which represent the main projects on which the ENAV Group will be committed in the period Strategy and Technologic
Slide 12: Historical Solid Dividend Capacity Put on Hold for 2020
Historical Solid Dividend Capacity Put on Hold for 2020 EBITDA and Profitability CAPEX EBITDA CAGR in 2017-2019 6.8% 33.4% 33.5% 115 117 116 ▪ EBITDA and margin growth Margin (1) 32.2% trends registered in 2017- 91 27.3% 2019 halted by Covid-19 outbreak in 2020 283.6 297.4 302.9 210.8 * ▪ CAPEX at €
Slide 13: Operating in a Favorable Market Environment
Operating in a Favorable Market Environment
Slide 14: Benefiting From Long Term Growth Trends of Global Aviation Market
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) 21 ▪ Independent source indicates a 18 2019-2038 Air traffic has doubled +4.3% CAGR global growth in traffic reflecting a
Slide 15: Diversified Customer Base and Business Mix Provide Resilient Results
Diversified Customer Base and Business Mix Provide Resilient Results Diversified Business Mix En-route traffic breakdown (by Service Units) (1) Terminal traffic breakdown (by Service Units) (1) ▪ Diversified business mix with majority of revenue from en- (2) National Overflight route services and re
Slide 16: European Regulatory Framework Providing Long-term Visibility (1/2)
European Regulatory Framework Providing Long-term Visibility (1/2) En-route (73% of regulated revenue (1)) ▪ Visibility through 5-year regulatory period Regulatory Period RP2 (2015 – 2019) RP3 (2020 – 2024) (2) ▪ Strong traffic risk mitigation Mitigated Mitigated (70% protection (70% protection ▪ Si
Slide 17: European Regulatory Framework Providing Long-term Visibility (2/2)
European Regulatory Framework Providing Long-term Visibility (2/2) Terminal (27% of regulated revenue (1)) Charging % of regulated Difference Airports Charging regulation Zone revenue (1) from en-route 4% Subject to traffic risk sharing and PERFORMANCE AND Terminal CHARGING SCHEME ▪ Rome Fiumicino c
Slide 18: RP3 Regulation Update
RP3 Regulation Update RP3 as per European Commission Proposed Timing Derogation for RP3 Performance Plan Definition • The RP3 regulatory framework was approved in February 2019 and cost efficiency targets were set in May 2019 with performance plans submitted by year end 2019 • Approval by European C
Slide 19: Countermeasures to Support Air Transport Sector
Countermeasures to Support Air Transport Sector Agreement with Eurocontrol and member states to defer 1 February-to-May billing due from airlines Airline Feb 2020 Mar 2020 Apr 2020 May 2020 From June 2020 payments are onward regular, with Return to regular 99.5% €50m revenue Traffic revenue Traffic
Slide 20: Appendix
CVlenav group Appendix
Slide 21: Overview of Customer Base
Overview of Customer Base Well Diversified Customer Base (1) 2020 2019 17.3% 14.9% ▪ Broad customer base which includes 10.0% 9.9% carriers from diversified geographies 5.4% 6.5% 4.1% 3.8% ▪ Balanced exposure towards low-cost 3.0% 2.1% and full-service airlines 2.6% 2.1% 2.4% 2.0% ▪ Empty routes qui
Slide 22: Reference Regulation – Key Principles of Tariffs
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 “S
Slide 23: En-route Tariff – Chargeable Costs
En-route Tariff – Chargeable Costs Total Cost Base Calculation (Chargeable Costs) Determined Costs Breakdown A ENAV Determined costs ENAV costs ~ 90% Non-ENAV costs ▪ Labour + Other Opex + Eurocontrol costs 10% ▪ D&A Labour + Other Cost of capital ▪ Cost of capital 9% Opex + B Non-ENAV Determined co
Slide 24: Traffic Balance
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 airl
Slide 25: The Balance from Traffic Risk Sharing Mechanism
The Balance from Traffic Risk Sharing Mechanism Year N: Economic Effect Year N+2: Financial Effect Balance Planned Costs (e.g. +10 under Define the Step 1 Applicable Tariff as: recovery) Planned Traffic Define the Planned Costs + Balance (+10) Step 1 Applicable Tariff as: Planned Traffic Step 2 Plan
Slide 26: Historical En-route Tariff – Efficiency Target for DUC in RP2
Historical En-route Tariff – Efficiency Target for DUC in RP2 Performance Plan: Key Economic Assumptions (1) ▪ 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 2014-2019
Slide 27: Historical Income Statement 2015-2020
Historical Income Statement 2015-2020 (2) €m 2015 2016 2017 2018 2019 2020 Net Sales 850 865 882 890 903 771 En-Route 566 583 615 675 689 233 Terminal 180 195 220 223 231 82 (1) Other 104 87 47 (8) (18) 456 Operating costs (607) (610) (598) (592) (600) (561) Personnel costs (476) (478) (478) (481) (
Slide 28: Historical Revenue, Net Revenue and Opex Overview 2015-2020
Historical Revenue, Net Revenue and Opex Overview 2015-2020 (1) €m 2015 2016 2017 2018 2019 2020 ▪ Main drivers of ENAV’s net revenue are en-route and Revenue 859 875 892 899 912 780 terminal businesses, representing about 97% of net Capex contribution (9) (10) (10) (9) (9) (9) revenue Net revenue 8
Slide 29: Historical Balance Sheet 2015-2020
Historical Balance Sheet 2015-2020 (1) €m 2015 2016 2017 2018 2019 2020 Property, plant and equipment & right-of-use assets 1,084 1,056 1,028 1,000 985 930 Intangible assets 122 123 124 122 172 176 Investments 35 36 51 60 63 50 Other non-current assets and liabilities 67 84 17 (118) (157) 258 Liabil
Slide 30: FY 2020 Cash Flow and Capitalization
FY 2020 Cash Flow and Capitalization • ENAV’s liquidity and financial position remains adequate to Maturity Total debt face future challenges, despite the effect of the Covid-19 Current outstanding/ outbreak Non-current cash (€m) (<1 year) • The cash balance in 2020 decreased by €133m over 2019 to €
Slide 31: FY 2020 Cash Flow Details
FY 2020 Cash Flow Details 84 (449) 138 54 449 220 (113) (1) 316 (77) 24 (13) €m (1) (2) (3) (1) Cash 2019 Net profit D&A Change in NWC Change in Cash Capex Other cash flows Debt repayment Debt increase Dividends Other items Cash 2020 other A&L from inv.s ▪ The cash (1) balance decreased by €133m in
Slide 32: Disclaimer
Disclaimer This presentation contains 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 curren