Slide 1: 2018 Full Year Financial Results
2018 Full Year Financial Results March 11, 2019
Slide 2: 2018 Highlights
2018 Highlights ▪ Strong traffic growth in 2018, with en-route traffic up 9.3% YoY, making ENAV the top performer among big 5 European countries ▪ Net Revenue increases by 0.9% YoY to €889.7m, with Revenue from Operations and Other Operating Income growth largely offset by a negative Balance: ▪ Reve
Slide 3: 2018 Main Traffic Trends
2018 Main Traffic Trends En-route ▪ Strong En-route performance with service units up 9.3%(1) YoY driven by: National Traffic breakdown Overflight 19% ▪ Double-digit growth in Overflight traffic, with service units growing 14.0% YoY (by Service Unit) 40% ▪ Confirmed strong growth in International tr
Slide 4: Consistently Delivering Best in Class Performance
Consistently Delivering Best in Class Performance 5th Largest Air Navigation Service Provider in Europe En-route Planned Traffic vs Actual Traffic Delta traffic vs 2018 En-route Service Units (‘000) Service units (m), % Performance Scheme 11.5 21,450 > +10 p.p. 11.0 +2 p.p.÷ 14,989 10.5 +10p.p. 12,1
Slide 5: Net Revenue Performance
Net Revenue Performance Net Revenue breakdown €m +0.9% 889.7 ▪ Net Revenue +0.9% YoY driven by strong increase in Revenue from 881.8 Operations, up 7.1%, and by Other Operating Income, up 27.7%, largely +1.4% offset by negative Balance 219.6 222.6 ▪ Significant en-route revenue growth of 9.8% YoY dr
Slide 6: Cost Efficiency on Track
Cost Efficiency on Track Delivering strong external cost efficiency ▪ External opex optimization continuing to deliver significant results with reduction of €5.7m YoY (-3.8% vs 2017): €m (3.8)% 148.9 ▪ Decrease in utilities and telecommunication costs of €6.0m, down by 143.2 16%, driven by contract
Slide 7: Strong Cash Flow Dynamics Underpin Solid Dividend Capacity
Strong Cash Flow Dynamics Underpin Solid Dividend Capacity Growing and Resilient Cash Flow Generation Growing EBITDA and Profitability Capex Operating Cash-Flow(2) and Normalized ▪ Significant EBITDA growth Equity FCF(3) Evolution 6.5% EBITDA CAGR in 2016-2018 over last 3 years, with OpCF Normalized
Slide 8: Update on RP3 Regulatory Framework
Update on RP3 Regulatory Framework ▪ In February 2019 the EC published the new Regulatory Framework for RP3, valid for all SES countries and covering the period 2020-2024 ▪ New regulatory framework (RP3, 2020-2024) broadly in line with the current regulatory framework (RP2, 2015-2019): ▪ Traffic pro
Slide 9: D-Flight, for Drones Air Traffic Management
D – Flight, for Drones Air Traffic Management Timing Mission Based on agreement with national ▪ D-Flight will develop and implement a specific air traffic control system for Aug 2016 regulator (ENAC) in August 2016, ENAV UAVs (Unmanned Aerial Vehicles), by setting up a platform (U-space is entrusted
Slide 10: M&A Opportunities, Acquisition of IDS Air Navigation Division
M&A Opportunities, Acquisition of IDS Air Navigation Division ▪ IDS in one of the leading providers of select ATM products and services, serving over IDS 100 clients worldwide, including ENAV Overview ▪ The Air Navigation Division, which is our target, is active in the development of software soluti
Slide 11: 2018 Financials Overview
@Wenav Ye 2018 Financials Overview > 10
Slide 12: Net Revenue and EBITDA Development
Net Revenue and EBITDA Development Net Revenue €m ▪ Solid Net Revenue increase 16 +0.9% of 0.9% YoY driven by strong 3.0 Operating revenue (0.9) (0.8) performance, particularly in the 60.1 (63.5) 889.7 en-route business, partly offset 881.8 10.0 by negative impact of Balance ▪ €63.5m higher negative
Slide 13: Consolidated P&L and Main Movements Below EBITDA
Consolidated P&L and Main Movements Below EBITDA Change ▪ Reduction in D&A of 1.2% YoY 2018 2017 € mln Amount % ▪ Reduction in provisions and Revenue from operations 924,585 863,161 61,424 7.1% write-downs mainly due to Balance (80,687) (17,223) (63,464) 368.5% certain positive settlements in Other
Slide 14: Cash Flow and Capitalization
Cash Flow and Capitalization ▪ Cash balance increases by €53m YoY mainly as a result of: ▪ Net Profit of €114.4m, almost fully offset by dividends paid, Maturity Total debt outstanding/ca amounting to €101.0m, and shares buy back, amounting to €5.0m Current (<1 year) Non-current sh (€m) ▪ Capex of €
Slide 15: 2019 Guidance
2019 Guidance Flat to low single-digit Net Revenue growth, with decrease in regulated tariff offset by expected growth in traffic Capex of €125m EBITDA margin 32% 2020 DPS expected to grow by 4% over 2019 14
Slide 16: 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