Fnm S.p.a. · MIL:FNM
Fnm — Mid & Small Conference (April 2020)
38 slides from Fnm's conference presentation, April 2020
Slide 1: FNM Group Corporate Presentation
FNM Group Corporate Presentation Mid & Small Conference April 2020
Slide 2: The FNM Group
The FNM Group ¦ Overview ¦ The Core Business ¦ The reference context FY 2019 Financial Results 2020 Outlook
Slide 3: The FNM Group | Overview
The FNM Group | Overview The Group in short Shareholders • FNM S.p.A. ("FNM" or the “Group") was established in 1879 with the Free Float objective of building and managing the railway infrastructure of the Lombardy Region. Today, FNM is one of the main transport and mobility operators in Northern It
Slide 4: History
The FNM Group | History FNM is the main integrated transport and mobility Group in Lombardy Inception of Ferrovie Nord Milano for construction and management 1879 2nd railway in of railway lines in Lombardy Italy Ferrovie Nord Milano is listed on the Path towards 1926 main market of Milan nationalis
Slide 5: The core business
The FNM Group | The core business Businesses at the start‐up stage RoSCo & Services Railway Infrastructure Road mobility Freight mobility • Leasing of rolling stock in the Management of the railway • Management of Road LPT: Activities related to the LPT and freight transport sector infrastructure in
Slide 6: The core business: RoSCo & Services
The FNM Group | The core business: RoSCo & Services Owned fleet leased * * To which will be added 13 new trains (9 LPT + 4 shunting) to be delivered by 2021 6
Slide 7: The core business: Railway infrastructure
The FNM Group | The core business: Railway infrastructure The business in a nutshell The managed network It is the infrastructural mobility operator in Lombardy through the management of: • over 330 km of network and 120 stations in the provinces of Milan, Varese, Como, Novara, Monza and Brescia • t
Slide 8: The investment plan of the Lombardy Region
The FNM Group | The investment plan of the Lombardy Region* First train delivered at the end of 2019, operational since February 2020 on the Chiasso ‐ Como ‐ Milan ‐ Rho line • 176 new trains by 2025 • Total investment of € 1.6 billion Increase in the Reduction of average number of average age of th
Slide 9: The investment plan of the Lombardy Region
The FNM Group | The investment plan of the Lombardy Region* 105 41 Caravaggio Train (Hitachi) Donizetti Train (Alstom) 30 Colleoni Diesel Train (Stadler) 9
Slide 10: The core business: Road mobility - Lombardy
The FNM Group | The core business: Road mobility ‐ Lombardy The business in a nutshell Current territorial presence Road LPT service in suburban contexts TRAFFIC 4.3 million passengers/year 5.6 million bus‐km LINES 19 lines serving a rail network of over 630 km, on three Provinces (Brescia, Como/Lec
Slide 11: The core business: Road mobility - Veneto
The FNM Group | The core business: Road mobility ‐ Veneto The business in a nutshell Current territorial presence • LPT service in the city of Verona and Province • Sub‐contracting local public transport (LPT) services in the basins of Verona, Padua, Venice and Belluno • Services of bus leasing with
Slide 12: Contribution of the Business Areas
The FNM Group | Contribution of the Business Areas Actual 2019 (net of intercompany) 2019 Revenue Contribution* 2016‐2019 Revenues (€ mn)* 2019 EBITDA ADJ Contribution* RoSCo & Services EBITDA Margin 2019 = 63% Railway infrastructure EBITDA Margin 2019 = 4% Road 5.0X mobility Acquisition from La Lin
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Slide 14: JV Trenord, established in 2011 as strategic partnership
The FNM Group | JV Trenord, established in 2011 as strategic partnership Trenord in short Shareholders • It represents the pillar of mobility in Lombardy, connecting the main urban nodes and interconnecting the regional territories • It manages the suburban and regional railway service of Lombardy o
Slide 15: The reference context
The FNM Group | The reference context Mobility demand is expected to be stable, but with concurrent modal shift towards LPT Railway and LPT Road Evolution of daily commutes in the Lombardy Breakdown of daily commute modes in the Region (growth vs 20141) Lombardy Region (2014 ‐ 20301) LPT Road 13.9 m
Slide 16: FY 2019 Financial Results
The FNM Group FY 2019 Financial Results ¦ Highlights ¦ FY 2019 consolidated results ¦ Dividend Policy 2020 Outlook
Slide 17: Economic-financial highlights
The FNM Group | Economic‐financial highlights P&L Balance Sheet mln € mln € FY 2017 FY 2018* FY 2019 Net Fixed Assets 490.1 453.4 479.2 Net Working Capital ‐36.2 4.3 (132.3)*** Shareholders’ Equity 398.2 435.2 454.3 Net Financial 55.6 22.5 (107.4)*** Revenues EBITDA EBIT Net Profit Position (cash) I
Slide 18: Executive Summary FY 2019 Financial Results
The FNM Group | Executive Summary • Confirmed business steadiness and sound profitability FY 2019 Financial • Free Cash Flow at over 49 million Results • Adjusted NFP with a cash‐balance • Stress test for COVID‐19 impacts COVID‐19 • Business and financial situation under control and with limited ris
Slide 19: FNM Group | FY 2019 Highlights
FNM Group| FY 2019 Highlights 19
Slide 20: FY 2019 Revenues and Adjusted EBITDA by BU
FNM Group| FY 2019 Revenues and Adjusted EBITDA by BU Higher revenues from €M REVENUES FY 2019 FY 2018 Var.% project management Railway Infrastructure 124.6 122.2 +2.0% Ticketing +4% thanks to: Road mobility 118.3 115.7 +2.2% • Higher train replacement services • Increase in demand RoSCo & Services
Slide 21: From EBITDA to Net Result FY 2019
FNM Group| From EBITDA to Net Result FY 2019 €M 71.0 Higher non‐use commissions on 2018 +6.3% syndicated loan FY 2019 30.3 8.0 30.3 (40.7) (2.4) (5.6) EBITDA D&A EBIT Net Financials JVs Taxes & Net Result Minorities Higher result from Trenord, DB Cargo 72.1 and NORD ENERGIA FY 2018 31.0 5.9 28.5 (41
Slide 22: FY 2019 Consolidated NFP
FNM Group| FY 2019 Consolidated NFP Net Cash €M 107.4 Total Cash Flow +67.6 +38.5 +11.8 Taxes Net Financials (35.2) +71.0 (3.0) Adj. Net (1.4) Dividends cash‐in Cash Var. NWC Others 39.9 +5.8 (10.5) (reclass.) Timing in CAPEX Rolling Stock (net of grants) +8.9 Capex Dividends cash‐out advances/ Net
Slide 23: 2020 Dividend Policy
FNM Group| 2020 DIVIDEND POLICY DPS Euro 0.022 Total Cash‐out Euro 9.6 million Dividend Yield 4.9% (as of 27.03.20) Pay‐out Ratio 40% (on FNM Net Result)
Slide 24: 2020 Outlook
The FNM Group FY 2019 Financial Results 2020 Outlook ¦ COVID‐19 Impacts ¦ FY 2020
Slide 25: COVID-19 Overview
The FNM Group | COVID‐19 Overview People Safety Business Continuity • FNM Group is taking all precautions to • Business model resilient due to the B2B main manage risks for employees, adopting activities of the Group stringent protocols, in line with Authorities’ • Stress Test for COVID‐19 impacts:
Slide 26: COVID-19 Impacts
The FNM Group | COVID‐19 Impacts Top‐line EBITDA Impacts Impacts Scenario* Scenario* MILD HARD MILD HARD Ongoing COST RoSCo & Services Contingency %%%% Initiatives: 2020 Reforecast in all business Railway units with a Infrastructure relevant reduction of discretionary & variable costs in order to Ro
Slide 27: 2020 FNM Group Outlook
2020 FNM GROUP OUTLOOK PRE COVID‐19 POST COVID‐19 REVENUES Down mid‐single digit vs FY19 In line with FY 2019 Adjusted Down high‐single digit vs FY19 EBITDA Worsening although positive operating cash flow due to Adjusted NFP higher CAPEX for renewing Rolling Stock (currently maintained) and for frei
Slide 28: Annexes
Annexes Company Profile Sustainability Strategy FY 2019 Consolidated Income Statement FY 2019 Result of associates by Company FY 2019 Consolidated Balance Sheet Details of some companies Corporate organisational chart
Slide 29: Shareholders and stock performance
The FNM Group | Shareholders and stock performance 2019 vs Reference indexes Total Return FNM +46.7% FTSE ITALIA ALL SHARE +32.5% FTSE ITALIA SMALL CAP +31% January April June August October December Company profile Lombardy shareholders The Region 22.7% Market Market capitalisation to date € 200 ml
Slide 30: Sustainability Strategy
The FNM Group | Sustainability Strategy Strengthening FNM’s positioning as reference player in sustainable and integrated mobility, incentivising the use of collective transportation and the modal shift to reduce polluting emissions and improve the livability of cities and surrounding areas VISION M
Slide 31: Sustainability Governance
The FNM Group | Sustainability Governance The FNM Group has developed its own Governance system to promote the integration of Sustainability issues in the definition of corporate processes in all business areas and assure their compliance with current regulations through: Committee within the Board
Slide 32: FY 2019 Consolidated P&L
FNM Group| FY 2019 Consolidated P&L 2018 Euro million 2019 Var. Var. % pro‐forma ATV Revenues from sales and services 279,2 276,3 2,9 1,0% Other revenues and income 21,4 20,0 1,4 7,1% TOTAL REVENUES AND OTHER INCOME 300,6 296,3 4,3 1,5% Operating costs (105,5) (106,1) 0,6 ‐0,6% Personnel costs (125,
Slide 33: FY 2019 Segment Information
FNM Group| FY 2019 Segment Information Railway Infrastructure Road Mobility Euro million 2019 2018 Var. Var. % Euro million 2019 2018 Var. Var. % Public Service Agreements 99,6 99,7 (0,1) ‐0,1% Public Service Agreements 46,4 46,2 0,2 0,3% Rolling Stock 8,5 8,5 0,0 0,1% Ticketing 62,3 60,0 2,4 3,9% O
Slide 34: FY 2019 Associates Result by Company
FNM Group| FY 2019 Associates Result by Company Amounts in thousands Euros 2019 2018 Var. Trenord Srl * 1.598 911 687 NORD ENERGIA SpA ** 3.377 2.792 585 DB Cargo Italia Srl 1.722 988 734 Omnibus Partecipazioni Srl *** 1.192 1.325 (133) NordCom SpA 460 173 287 Conam Srl 55 57 (2) ATV S.r.l. ‐ SeMS S
Slide 35: FY 2019 Consolidated Balance Sheet
FNM Group| FY 2019 Consolidated Balance Sheet 31/12/2018 Euro million 31/12/2019 PRO‐FORMA Var. 31/12/2018 IFRS 16 Inventories 8,9 7,0 1,9 7,0 Current receivables 125,5 151,2 (25,7) 151,2 Current payables (266,7) (153,9) (112,9) (153,9) Net Working Capital (132,3) 4,3 (136,6) 4,3 Non‐current assets
Slide 36: The core business: Road mobility - E-Vai
The FNM Group | The core business: Road mobility – E‐Vai The business in short The business in short • First electric car‐sharing service by popularity at the regional level in Lombardy, integrated with the railway system: • Corporate solutions for shared and sustainable mobility for Companies and L
Slide 37: The core business: Freight mobility
The FNM Group | The core business: Freight mobility Malpensa Intermodale was launched in December 2018 with the objective of offering to the intermodal and logistics market innovative solutions that are structured on customers’ needs. The purpose of the Company is to promote, develop, manage and mar
Slide 38: Corporate structure and business segments
The FNM Group | Corporate structure and business segments Updated as of December 2019 50% 100% 20% 80% RoSCo & Services 51% 25% ASF Autolinee (through Omnibus Part.) 50% Railway 51% infrastructure 100% * 100% Road mobility 100% 40% Cargo Italia 49% Freight mobility 100% * 100% 58% 60% * Company sold