Fnm S.p.a. · MIL:FNM
Fnm — Mid & Small | Milan 2023
71 slides from Fnm's conference presentation, Nov 22, 2023
Slide 1: FNM Group - Mid & Small Milan 2023
Mid & Small | Milan 2023 FNM Group 22 November 2023
Slide 2: The FNM Group agenda
The FNM Group Key strategic initiatives 9M23 Economic & Financial Results Strategic Plan Guidelines Economic & Financial Targets 2021 – 2025 Appendix 2
Slide 3: Group Overview
Group Overview Shareholders’ structure • Established in 1877, FNM is the leading integrated sustainable mobility Group in Lombardy • It is the first organization in Italy to combine Railway Infrastructure Free float Regione Management, Road Transport and Motorways 27.69% Lombardia • The aim of the G
Slide 4: Geographical presence
Geographical presence Presence in Italy’s most prosperous region • GDP per capita among the highest in the EU, about 35% higher than the Italian average and 25% higher than the EU average1 • Regional unemployment rate at 4.9%, far below the Italian and European average (8.1% and 6.2% respectively)1
Slide 5: Main financial highlights
Main financial highlights Revenues Adjusted EBITDA 605,4 193,1 543,7 165,3 161,0 474,1 456,3 149,3 300,6 69,6 2019 2020 PF* 2021 PF* 2022 9M 2023 2019 2020 PF* 2021 PF* 2022 9M 2023 FNM Reported 279.5 514.0 FNM Reported 70.1 153.5 Adjusted Net Result Adjusted NFP Including €52mln 68,8 755,6 766,9 71
Slide 6: 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 7: 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 Alternative digital mobility platforms according to MaaC paradigm (Busf
Slide 8: The FNM Group agenda
The FNM Group Key strategic initiatives 9M23 Economic & Financial Results Strategic Plan Guidelines Economic & Financial Targets 2021 – 2025 Appendix 8
Slide 9: Hydrogen as a strategic development area for the FNM Group
Introducing hydrogen into a path of energy transition is a strategic development area for the FNM Group Execution Phase Integrated Group project Area is located at the intersection of the Rhine-Alpes and Mediterranean corridors and the Milan node MISE hydrogen project extends in a synergic and compl
Slide 10: H2iseO Hydrogen Valley
H2iseO Hydrogen Valley A sustainable mobility system in Val Camonica along the Brescia-Iseo-Edolo non-electrified railway line, gateway to the Hydroelectric plant Milano-Cortina 2026 Winter Olympic Games Edolo Station 1 +6 hydrogen trains already commissioned to Alstom T.B.D.3 Funded1 FNM By 2024 Hy
Slide 11: SerraHydrogenValle
SerraHydrogenValle Realize 5 Hydrogen Refueling Stations (HRS) along the A7 Milan- Rho Ovest Genoa highway and A50-A51 ring roads, built in areas under Carugate concession to MISE (3 sites decommissioned Service Areas, 2 sites former Toll Booths) • Organic and systemic project for the area served by
Slide 12: FILI regeneration project
FILI is one of the largest regeneration projects in Europe MILANO CADORNA RAIL STATION O2F OXYGEN FACTORY Construction of a railway tracks’ cover of about 60,000 sqm, including 30,000 sqm of green areas with the presence of Oxygen Factory, a synthetic forestable to absorb C02 aimed at improving the
Slide 13: Lombardy rail market and new Public Service Contract
Among the most important LPT railway players in Europe excluding the National train operators Around Passengers per day on regional trains Other (‘000 pax/day)2 Trenord 700,000 24% 28% Lazio Complex operating Pax/day 1 2.9mln environment due to rail pax/day in traffic congestion: Lombardy Lombardy T
Slide 14: FlexyMob mobility solution
The innovative transportation solution that simplifies the mobility of communities FlexyMob is the first online platforms to custom-build mobility services to reach and visit a location (stadiums, fairs, business event ...) Business description Main Events 2022/2023 SERVICES EUROBASKET Bus, Parking,
Slide 15: FNM invested in 40% stake in BusForFun
FNM invested €1.0mln for a 40% stake in BusForFun in 2020/2021 Business description Acquisitions of GoGoBus Growth driven and by expansion in • BusForFun is the first mobility company that organizes and Busrapido B2B segment manages transportation during events with a community supported by FNM + en
Slide 16: FNM invested in 33% stake in Sportit
FNM invested €2.5mln for a 33% stake in Sportit in 2021 Number of Snowit users (k) Business description 71 150 220 220,000 500+ 15.5 Registered users Partners 9.1x • Technology is designed to be able to integrate any 6,7 service related to mobility for leisure: create and manage marketplaces dedicat
Slide 17: The FNM Group agenda
The FNM Group Key strategic initiatives 9M23 Economic & Financial Results Strategic Plan Guidelines Economic & Financial Targets 2021 – 2025 Appendix 17
Slide 18: 9M 2023 Financial Highlights
9M 2023 Financial Highlights 1 – Excluding the effects of the sale of La Linea/Martini Bus and absence of car sharing public contribution in 9M23 % = EBITDA Margin (see slide 27 for details) 18
Slide 19: 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 19
Slide 20: LPT mobility demand for bus and rail
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 20
Slide 21: Adj. EBITDA evolution
Adj. EBITDA evolution Growth underpinned by traffic recovery and new TILO/TAF trains, despite negative effect of the sale of La Linea/Martini and the loss of public contribution on car sharing 1 – Excluding the effects of the sale of La Linea/Martini Bus and absence of car sharing public contributio
Slide 22: 9M 2023 Group net result
9M 2023 Group net result Positive consolidated net result despite change in perimeter and higher D&A, strong rebound of companies consolidated at equity N.B. In the absence of extraordinary gains/expense, the Adjusted EBITDA and the Reported EBITDA coincide 22
Slide 23: 9M 2023 Capex analysis
9M 2023 Capex analysis Lower investments mainly driven by delay in TAF revamping, expected acceleration in 4Q23 but guidance revised downward 23
Slide 24: Consolidated Cash Flow
Consolidated Cash Flow Positive cash flow generation, sale of La Linea/Martini and dividends from Associates drive free cash flow of the period * Include: (i) negative ∆CCN from operations for €15.0mln, (ii) negative ∆CCN from investments with own funds for €32.6mln and (iii) positive ∆CCN from inve
Slide 25: Net Financial Position evolution
Net Financial Position evolution NFP in line with expectations and within rating agencies requirements 1 – Fully available, intended only for the purchase of trains related to the “2017-2032 Rolling Stock Purchase Programme”. The pledge was cancelled on 19th January 2023 after termination of the of
Slide 26: Gross debt composition at 30 September 2023
Gross debt composition at 30 September 2023 1 – Excluding debt for funded investments for €69.7 million 2 – Only on bank debt and bond 3 – Include the surplus of grants for funded investments in railway infrastructure, rolling stock other than the «2017 – 2032 Programme» and motorway infrastructure
Slide 27: FY 2023 Outlook
FY 2023 Outlook Confirmed guidance for Revenues and EBITDA and lower Adj. NFP following CAPEX slowdown 27
Slide 28: The FNM Group agenda
The FNM Group Key strategic initiatives 9M23 Economic & Financial Results Strategic Plan Guidelines Economic & Financial Targets 2021 – 2025 Appendix 28
Slide 29: Strategic Plan
Strategic Plan MOBILITY – Confi rmation of the central role of rail LPT, INFRASTRUCTURE - Management and development of the rail strengthening of positioning in road LPT, development in network, stations and interchange hubs, consolidation in the integrated multimodal and last mile mobility, positio
Slide 30: Integration of ESG Principles in Strategic Guidelines (1/2)
Integration of ESG Principles in Strategic Guidelines (1/2) Pillars Strategic Guidelines Segment ▪ Consolidate the central role of LPT on rail ▪ Strengthen the positioning in LPT on road Mobility ▪ Develop integrated multimodal and last mile mobility ▪ Position the Group as Mobility Partner for comm
Slide 31: Integration of ESG Principles in Strategic Guidelines (2/2)
Integration of ESG Principles in Strategic Guidelines (2/2) Enablers Strategic Guidelines Segment ▪ Data-based approach as a driver to support the growth and innovation of the services offered Innovation and ▪ New digital strategy for company’s processes data management ▪ Continuous innovation to ke
Slide 32: Strategic plan targets across the sustainability pillars
Strategic plan targets across the sustainability pillars Pillars Targets Metrics 2021 2022 Target 2025 Entry in the motorway business Vehicles-km driven on the motorway/year 2.6 bln vkm 3.0 bln vkm 3.1 bln vkm Strengthening of road LPT Passengers transported by bus services/year 48.2 mln pax 59.0 ml
Slide 33: Strategic plan targets across the sustainability enablers
Strategic plan targets across the sustainability enablers Enablers Targets Metrics 2021 2022 Target 2025 Innovation and data €5.1 mln Continuos innovation Resources for technological/digital R&D projects €4.1 mln € 11 mln (cum 21-25) management (cum 21-22) Emissions and consumption reduction CO2 emi
Slide 34: EU taxonomy eligible activities at 31 December 2022
EU taxonomy eligible activities at 31 December 2022 34
Slide 35: The FNM Group agenda
The FNM Group Key strategic initiatives 9M23 Economic & Financial Results Strategic Plan Guidelines Economic & Financial Targets 2021 – 2025 Appendix 35
Slide 36: Strategic plan assumptions: mobility demand evolution
Strategic plan assumptions: mobility demand evolution Compared to strategic plan assumptions, MISE is well on track, bus transport is showing a slower recovery and Trenord is over performing Bus transport (mln pax/year) MISE (bln vehicles-km/year) 77 78 79 80 +12% 3.0mln in FY22 +8% 58.8mln in FY22
Slide 37: Investments
Investments Mainly for motorway infrastructure and rolling stock; bus fleet renewal and development of the freight logistics infrastructure Gross CAPEX financed by FNM Group Ro.S.Co. & Services • Investments in new rolling stock with low environmental impact (electric and hydrogen fuelled trains) 22
Slide 38: Main economic highlights of 2021-2025 Strategic Plan
Main economic highlights of 2021-2025 Strategic Plan 2021-2025 Strategic Plan1 €481mln ≈ €680mln +7% Revenues 2020 PF TARGET 2025 CAGR ’20-25 Adj. EBITDA €151mln ≈ €250mln +11% 2020 PF TARGET 2025 CAGR ’20-25 Adj. Net Result2 €35mln ≈ €50mln +7% 2020 PF TARGET 2025 CAGR ’20-25 Adj. NFP3 €740-780mln
Slide 39: The FNM Group agenda
The FNM Group Key strategic initiatives 9M23 Economic & Financial Results Strategic Plan Guidelines Economic & Financial Targets 2021 – 2025 Appendix 39
Slide 40: Regulation: regional railway service in Lombardy
Regional railway service in Lombardy at a glance • Operate and maintain • Grantor of railway infrastructure • Own and maintain rolling stock infrastructure as per PSC1 • Set minimum service levels • Lease rolling stock to train • Upgrade infrastructure to meet • Awards LPT franchises operating compa
Slide 41: Ro.S.Co. & Services
Ro.S.Co. & Services «a ‘=FNM
Slide 42: Ro.S.Co. & Services
Ro.S.Co. & Services ROLLING STOCK COMPANY & CORPORATE SERVICES Financial Highlights ▪ Purchasing and leasing of rolling stock to its investees, primarily REVENUES (€mln) Trenord and DB Cargo Italia (DBCI); ▪ Providing administrative and ICT services to its subsidiaries ▪ Managing real estate assets
Slide 43: Ro.S.Co. & Services – 9M 2023 financial results
Ro.S.Co. & Services – 9M 2023 financial results % = EBITDA Margin 43
Slide 44: Strategic JV with Trenitalia in Lombardy
Strategic JV with Trenitalia in Lombardy LOCAL RAIL PUBLIC TRANSPORT IN LOMBARDY Highlights ▪ Incorporated in 2011, Trenord is one of the most important operators of suburban and regional local public rail transport in €mln (post-IFRS) 2019 2020 2021 2022 Europe, both in terms of size and in terms o
Slide 45: A new approach to mobility proposition: MaaS and MaaC
A new approach to mobility proposition built around existing services but tailored to the needs of specific communities Mobility as a Service Mobility as a Community • Comprehensive mobility concept involving • MaaC is a possible evolution of MaaS the integration of multiple public and • Both MaaS a
Slide 46: Railway Infrastructure
Railway Infrastructure «+s =FNM
Slide 47: Railway Infrastructure
Railway Infrastructure INFRASTRUCTURE AND TRAFFIC MANAGEMENT Financial Highlights Key infrastructural operator in Lombardy, under a PSC in charge of REVENUES (€mln) the management, maintenance and modernization of 330 km of railway network and 115 stations serving passengers1 in the provinces of Mil
Slide 48: An infrastructure serving densely populated metropolitan areas
An infrastructure serving densely populated metropolitan areas Distance between stations: 2,81 km FERROVIENORD 3,03 km FER 5,44 km RFI LOMBARDIA 7,03 km RFI ITALIA FN’s managed network sustain the highest traffic density in Italy (~30,000 trains-km/network km), with up to 1 train every 1.5 minutes f
Slide 49: Railway infrastructure - Contractual framework
Railway infrastructure - Contractual framework Concession Programme Agreement Service Contract Purchase Programme Ferrovienord is granted the right to: (i) use, The Programme Agreement (“PA”) defines the The Public Service Contract (“PSC”) governs Regione Lombardia (RL) has authorized FN to manage a
Slide 50: Rolling Stock Purchase Programme for Regione Lombardia
Rolling Stock Purchase Programme for Regione Lombardia1 Fleet evolution2 ❑ Increase in the average number pax/day from 800k in 2019 to 1mln by 2031 ❑ Reduction in the fleet average age from 19 to 11 years → Improved quality of the service and comfort for passengers + Reduction of energy consumption
Slide 51: The Sacconago Terminal
The Sacconago Terminal Railways Malpensa Intermodale – company Malpensa Distripark – company established at the end 2018, involved established in 2019, involved in the in the development and management real estate development of the of the freight terminal in Sacconago, terminal areas owned by the G
Slide 52: Railway Infrastructure - 9M 2023 financial results
Railway Infrastructure - 9M 2023 financial results % = EBITDA Margin 52
Slide 53: Road Passenger Mobility
Road Passenger Mobility s i=FNM
Slide 54: Road passenger mobility
Road passenger mobility ROAD LPT AND TRAIN REPLACEMENTS Financial Highlights FNM Autoservizi (FNMA) performs extra-urban public road REVENUES (€mln) transport services in Lombardy, in particular in the provinces of Varese, Brescia and Como. FNMA also operates, train replacement services on behalf of
Slide 55: Road passenger mobility - Traffic evolution
Road passenger mobility - Traffic evolution 77.4 45.5 48.2 58.8 21.2 20.3 19.2 1,2 Covid pandemic and travel restrictions 1,4 18.4 0.8 17.4 17.4 16.7 1,3 0.5 15.4 1,1 0.8 15.6 15.0 Mln passengers transported 13.7 0.2 1.0 13.9 14.2 0.6 0.8 11.9 1.0 0.7 12.3 0.2 10.5 11.2 11.1 0.4 0.3 0.4 0.3 18,9 19,
Slide 56: Road passenger mobility - Regulatory framework
Road passenger mobility - Regulatory framework EU and Italian regulatory framework • EU Regulation n° 1370/2007 (amended by EU Regulation n° 2016/2338) sets the rules national and international operation of public passenger transport services by rail and road, including award of public service contr
Slide 57: Road passenger mobility – Contractual framework
Road passenger mobility – Contractual framework Awarding Contractual Remuneration Contractual LPT network Entity Body structure system expiration extension LPT Agency of Como - Net Cost + regulated FNMA (Varese) Concession 31/12/2023 222.9 Km Lecco - Varese Tariff Net Cost + regulated FNMA (Brescia)
Slide 58: Road passenger mobility – 9M 2023 financial results
Road passenger mobility – 9M 2023 financial results 1 – Excluding the effects of the sale of La Linea/Martini Bus and absence of car sharing public contribution in 9M23 % = EBITDA Margin (see slide 27 for details) 58
Slide 59: Motorways
Motorways s m=FNM
Slide 60: Motorways
Motorways MOTORWAY INFRASTRUCTURE MANAGEMENT Financial Highlights • On 26 February 2021 FNM acquired from Regione Lombardia an REVENUES (€mln) 82.4% stake in Milano Serravalle Milano Tangenziali S.p.A. (MISE). From July 2022, FNM owns 100% of MISE, 280,7 • Established in 1951 in Assago, MISE is the
Slide 61: Motorways - Traffic evolution
Motorways - Traffic evolution 320 300 280 260 240 Mln vehicles-km 220 Light vehicles 3,115 2,976 200 2,649 Heavy vehicles 2,117 180 2.512 2.039 2.355 1.585 160 603 533 610 621 140 2019 2020 2021 2022 120 100 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2023 2022 2021 2019 61
Slide 62: Motorways – Regulatory framework (1/2)
Motorways – Regulatory framework (1/2) Key Players • Ministry of Infrastructures and Transportation (MIT) – ex ANAS – is the Grantor of the Concession1; • Ministry of Economy and Finance (MEF) reviews and approves the Economic Financial Plan (EFP) and the yearly tariff increases requests together wi
Slide 63: Motorways – Regulatory framework (2/2)
Motorways – Regulatory framework (2/2) EFP 2020-2024 main financial elements (ex. ART decision n.69/2019) • MISE’s new regulatory framework will be composed of the Concession Addendum n.2 to the 2007 Single Concession Agreement and the 2020-2024 EFP that will set new CAPEX, maintenance and efficienc
Slide 64: Update of 2020-2024 Economic Financial Plan
Update of 2020-2024 Economic Financial Plan Timeline paced by several regulatory steps: expected final approval of EFP and Addendum to Concession by end of 2023 9 January 2023 Regional administrative court ✓ 7 August 2023 Transmission from MIT to ART for ✓ October/November 2023 By November 2023 Subs
Slide 65: Motorways – 9M 2023 financial results
Motorways – 9M 2023 financial results % = EBITDA Margin 65
Slide 66: Minority investment in Autostrada Pedemontana Lombarda (APL)
Minority investment in Autostrada Pedemontana Lombarda (APL) MOTORWAY INFRASTRUCTURE CONSTRUCTION AND Highlights MANAGEMENT • FNM holds though MISE a 36.7% stake in APL (Regione Lombardia €mln 2020 2021 2022 controls the remaining 63.3%), accounted for using the equity Revenues 31.9 39.9 47.2 method
Slide 67: History of the FNM Group
History of the FNM Group la vita in movimento
Slide 68: History (1/2)
History (1/2) FNM is the main integrated transport and mobility Group in Lombardy 1877 1879 1883 1926 1974 Incorporation of Società Anonima Ferrovie Milano-Saronno Launch of railway operation Incorporation of Società Ferrovie Nord Milano is listed Path towards nationalisation of e Milano-Erba for ra
Slide 69: History (2/2)
History (2/2) FNM is the main integrated transport and mobility Group in Lombardy 2004 2009 2010 2011 2015 Set up of FNM Esercizio for railway network management and Establishment, with Trenitalia, Incorporation of E-Vai and launch In May, Trenitalia-LeNORD NordCargo becomes DB FNM Trasporti for pas
Slide 70: 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 71: Contacts
Contacts Valeria Minazzi Investor Relations Director Fixed line: +39 02 8511 4302 valeria.Minazzi@fnmgroup.it investor.relations@fnmgroup.it