Enav S.p.a. · MIL:ENAV
Enav — Investor Presentation (July 2024)
29 slides from Enav's investor presentation, July 2024
Slide 1: Investor Presentation July 2024
Investor Presentation July, 2024
Slide 2: ENAV: a unique asset
ENAV: a unique asset Leading Air Traffic Control Service Provider • Only Air Navigation Service Provider (ANSP) worldwide listed on a stock exchange • 4th largest ANSP in the European Union • Sole provider of air traffic control and navigation services in Italy entrusted by national law without time
Slide 3: 2023 Group Highlights
2023 Group Highlights En-route traffic Total Revenue EBITDA Average Minutes 10.6m SUs1 En-route Delay per €1,000.0m €300.1m +11.0% vs. FY 2022 +5.9% vs. FY 2022 +10.2% vs. FY 2022 flight2 Terminal traffic Non-Reg. Revenue EBITDA margin 999.2k SUs 1 0.01 vs. 0.04 €43.1m 30.0% +10.9% vs. FY 2022 +7.9%
Slide 4: Governance & Shareholders' Structure
Governance & Shareholders’ Structure (1) Shareholding Governance Shareholders by type Shareholders by geographic Treasury United Rest of EU + Alessandra Bruni Switzerland Rest of the (4) Shares Unidentified Kingdom world and Chair of the Board of Directors 0.1% + Ireland 6.9% 3.1% undisclosed Retail
Slide 5: Historical Shareholders Remuneration
Historical Shareholders Remuneration Historical Dividend Distribution €m 180 €180m extraordinary dividend paid 113 in August 2015 108 106 124.5 95 101 59 47 32 36 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 • 2023 dividend: €124.5m to be distributed on the 29th May equivalent to 0.23 eu
Slide 6: Top Performance Through the Years
Top Performance Through the Years Average Minutes of En-route Delay per Flight 0.25 Amongst Member States subject to EU Actual vs. Target Performance Scheme, ENAV: 0.11 0.11 0.11 +80% 0.07 0.07 0.05 0.04 0.024 0.021 0.007 0.01 • is the 4th largest Air Navigation 2018 2019 2020 2021 2022 2023 Service
Slide 7: 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 (74% of regulated revenue1): handling of air traffic crossing Italian a
Slide 8: Non-Regulated Business
Non-Regulated Business On March 21, 2024, ENAV presented the guidelines for development in the non-regulated market. This growth is based on 4 main directives: Business expansion In line with ENAV Core ESG compliance Growing markets Focus on markets in line Increasing exposure to non- with ENAV core
Slide 9: Non-Regulated Business – Worldwide Presence
Non-Regulated Business – Worldwide Presence ENAV Group proactively seeks worldwide opportunities to develop innovative technologies for ATC EUROPE ASIA AFRICA AMERICAS Blue countries: ENAV Group presence OCEANIA AFRICA: Egypt, Eritrea, Ghana, Ivory Coast, Kenya, Libya, Morocco, Mozambique, Ruanda, S
Slide 10: Non-Regulated Business – IDS AirNav & Techno Sky
Non-Regulated Business – IDS AirNav & Techno Sky IDS AirNav joined the Group in 2019 and represents the forefront for the promotion and sale in the non-regulated market of the services and technological solutions available within the Group offers portfolio ▪ Price paid of €41m for 100% of Air Naviga
Slide 11: Non-Regulated Business – Aireon & D-Flight
Non-Regulated Business – Aireon & D-Flight ▪ Aireon is the first company that has developed a global satellite surveillance system for Air Traffic Control and ENAV is one of the shareholders ▪ Using 75 satellites that make up the new Iridium Next constellation, Aireon LLC provides an aviation survei
Slide 12: Sustainability Performance in 2023
Sustainability Performance in 2023 ENAV’s Sustainability Plan 2021-2024 The Sustainability Plan, based on 6 main Assets, defines a series of actions, based on the United Nations 17 Sustainable Development Goals (SDGs), on which the ENAV Group will be committed in the period and that pursue the full
Slide 13: Operating in a Favorable Market Environment
Operating in a Favorable Market Environment
Slide 14: Benefiting From Long Term Growth Trend of Global Aviation Market
Benefiting From Long Term Growth Trend of Global Aviation Market Global Traffic Increase Supporting Service Units Growth in the Medium-long Term World annual RPK (1) (trillion) 20 2019-2040 ▪ External source indicates a global 16 Air traffic has doubled +3.9% CAGR growth in traffic reflecting a ever
Slide 15: Diversified Customer Base and Business Mix Provide Resilient Results
Diversified Customer Base and Business Mix Provide Resilient Results Diversified Business Mix (1) 2023 En-route traffic breakdown (by Service Units) 2023 Terminal traffic breakdown (by Service Units) ▪ Diversified business mix with FY 2023: 10,618,354 1 ➔ +11.0% YoY FY 2023: 999.1921 ➔ +10.9% YoY ma
Slide 16: European Regulatory Framework Providing Long-term Visibility (1/2)
European Regulatory Framework Providing Long-term Visibility (1/2) En-route (74% of regulated revenue 1) RP3 performance plan 2020- Regulatory Period RP2 (2015 – 2019) RP3 (2020 – 2024) 2024 defined and approved Mitigated Mitigated (70% protection (70% protection ▪ Visibility through 5-year regulato
Slide 17: European Regulatory Framework Providing Long-term Visibility (2/2)
European Regulatory Framework Providing Long-term Visibility (2/2) Terminal (26% 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 cos
Slide 18: Appendix
Investor Presentation Appendix
Slide 19: Overview of Customer Base
Overview of Customer Base Well Diversified Customer Base (1) 2023 2022 19.5% 20.2% 6.6% 5.8% • Broad customer base which includes carriers from diversified geographies 6.1% 5.7% 5.7% 6.3% 4.2% 3.9% • Balanced exposure towards low-cost and full-service airlines 2.7% 2.8% 2.2% 2.6% • Empty routes quic
Slide 20: 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 21: 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 Non-ENAV costs ~ 90% 10% • Labour + Other Opex + Eurocontrol costs • D&A Cost of capital • Cost of capital 9% Labour + Other Opex B Non-ENAV Determined cost
Slide 22: 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 23: 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 24: En-route Tariff – Efficiency Target for DUC in RP3
En-route Tariff – Efficiency Target for DUC in RP3 RP3 Performance Plan (2020-2024): Key Economic Assumptions (1) ▪ The level of efficiency, agreed with the European Commission and officially approved via the Executive Decision of European Commission 2022/773, shows an average of 1.9% decrease per y
Slide 25: Historical Income Statement 2015-2023
Historical Income Statement 2015-2023 €m 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net Sales 850 865 882 890 903 771 837 944 1,000 En-Route 566 583 615 675 689 233 324 648 695 Terminal 180 195 220 223 231 82 136 220 241 Other (1) 104 87 47 (8) (18) 456 376 76 64 Operating costs (607) (610) (598)
Slide 26: Historical Revenue, Net Revenue and Opex 2015-2023
Historical Revenue, Net Revenue and Opex 2015-2023 • Main drivers of ENAV’s net revenue are en-route and terminal businesses, representing about 96% of net €m 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue revenue 859 875 892 899 912 781 845 953 1,011 Capex contribution (9) (10) (10) (9) (9) (
Slide 27: Historical Balance Sheet 2015-2023
Historical Balance Sheet 2015-2023 €m 2015 2016 2017 2018 2019 2020 2021 (1) 2022 (1) 2023 (1) Property, plant and equipment & right-of-use assets 1,084 1,056 1,028 1,000 985 930 885 852 823 Intangible assets 122 123 124 122 172 176 176 180 190 Investments 35 36 51 60 63 50 47 36 47 Other non-curren
Slide 28: 2023 Cash Flow and Capitalization
2023 Cash Flow and Capitalization ENAV’s liquidity and financial position remains very strong. We have closed FY 2023 with: • Cash and cash equivalents of €225m • Availability of undrawn credit lines of €199m out of which €150m are committed • Net financial position showing a net debt of €322m, comp
Slide 29: 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