Enav S.p.a. · MIL:ENAV

Enav — FY2017 Earnings Presentation

20 slides from Enav's earnings presentation, Mar 12, 2018

  1. Slide 1: 2017 Financial and Operating Performance & 2018-2022 Business Plan Overview

    2017 Financial and Operating Performance & 2018-2022 Business Plan Overview March 12, 2018

  2. Slide 2: 2017 Highlights

    2017 Highlights  Total Net Revenue increases by 1.9% YoY to €881.8m driven by strong traffic growth dynamics throughout the year  Revenue from Operations up 7.0% YoY to €863.2m  En-route revenue up 5.5% to €615.3m  Terminal revenue increases by 12.4% to €219.6m  Non-regulated revenue stable at

  3. Slide 3: 2017 Main Traffic Trends

    2017 Main Traffic Trends  Strong En-route performance with service units up 4.0%1 YoY driven by: En-route National  Solid increase in International traffic, with service units up 2.9% YoY Traffic breakdown Overflight 19% (by Service Unit) 39%  Acceleration in overflight traffic, with service unit

  4. Slide 4: Consistently Delivering Best In Class Performance

    Consistently Delivering Best In Class Performance 5th Largest Air Navigation Service Provider in Europe Highlights 2017 En-route Service Units (‘000) 20.862 14.374  5th Largest Air 11.768 Navigation Service 10.441 8.632 Provider in Europe  Best-in-class (1) performance in terms of Source: Eurocont

  5. Slide 5: Net Sales Performance

    Net Sales Performance Net sales breakdown €m 1.9%  Net sales +1.9% YoY driven by strong increase in Revenue from Operations, 865 882 up 7.0%: o/w Balance: o/w Balance: 47 (45.9)% 87  Solid En-route revenue growth of 5.5% YoY driven by positive trends in +€16m €(17)m 220 +12.4% national and interna

  6. Slide 6: Solid execution on efficiency plan

    Solid execution on efficiency plan Delivering strong external cost efficiency €m  External opex optimization continuing to deliver significant results with 162 (7.8)% reduction of €12.6m YoY (-7.8%, -3.3% excl. IPO costs in 2016): IPO Costs 7,5 149  Lower purchasing costs due to more effective spa

  7. 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 Normalizing Capex vs. Historical Levels(1) Operating Cash-Flow(3) and Normalized  Significant EBITDA growth Equity FCF(4) Evolution 8.0% EBITDA CAGR in 2015-2017 ov

  8. Slide 8: 2017 Financials Overview

    @Wenav Ye 2017 Financials Overview 7

  9. Slide 9: Net Revenue and EBITDA Development

    Net Revenue and EBITDA Development Net Sales €m  Solid net sales increase of 16 +1.9% 1.9% YoY driven by strong (0.3) Operating revenue 24 performance, both in en-route (34) (5.8) 882 and terminal, partly offset by 865 32 negative impact of Balance  Significant reduction in Balance mainly due to T

  10. Slide 10: Consolidated P&L and Main Movements Below EBITDA

    Consolidated P&L and Main Movements Below EBITDA Change 2017 2016 € mln Amount %  Reduction in D&A of 1.8% YoY 863.161 806.410 56.751 7,0% as a result of capex Revenue from operations Balance (17.223) 16.428 (33.651) n.m normalisation 35.886 42.433 (6.547) (15,4%)  Increase in Provisions and write

  11. Slide 11: Cash Flow and Capitalization

    Cash Flow and Capitalization  Cash balance increases by €32m YoY mainly as a result of:  Third and fourth and final tranches of Aireon Maturity Total debt  Debt repayments of €31m and new €80m EIB facility (1% fixed rate) Current (<1 outstanding/cash (€m) Non-current year)  Dividends paid of €95

  12. Slide 12: 2018 - 2022 Business Plan

    @Wenav Ye 2018 - 2022 Business Plan > 1

  13. Slide 13: 2018 – 2022 Business Plan

    2018 – 2022 Business Plan Key initiatives  Strategic review of ATC management through technological and operational evolution and new organizational model aimed at increasing performance, productivity and competitiveness while maintaining the paramount target of maximum safety:  Simplified organiz

  14. Slide 14: A – New Operating Model

    A – New Operating Model Target operational structure with 2 ACC’s and 2 remote tower hubs • 2 ACC, one in Rome and one in Milan, to Padova R-TWR CC 2 Milano ACC manage en-route traffic; integration in 2 ACCs ACC of approach radars currently in towers • ACCs in Brindisi and Padua transformed into 2 H

  15. Slide 15: B – Leading Development of Future-proof ATC Platforms

    B – Leading Development of Future-proof ATC Platforms • In line with requirements defined by Single European Sky, ENAV will implement, or extend the use to its entire airspace, of new cutting edge technolgies and systems aimed at maximising performance while ensuring utmost level of safety Main Init

  16. Slide 16: C – Expand Leadership in Non-regulated Business

    C – Expand Leadership in Non-regulated Business • Leverage on business volume expansion to grow non-regulated revenues, and improve margins through productivity increase through portfolio of Commercial Development Department’s Mission services offered: Development of products and services for non-re

  17. Slide 17: D – Exploit UAV Market Opportunity

    D – Exploit UAV Market Opportunity Based on agreement with national regulator (ENAC) ENAV is entrusted to authorise and control UAV flights within the airspace, charging a tariff for these services ENAV is setting up a NewCo in order to: • Develop an Air Traffic Management system for UAV (UTM) able

  18. Slide 18: 2018-2022 Business Plan Targets

    2018-2022 Business Plan Targets  Low single-digit Net Revenue CAGR over 2018-2022  Non-regulated Revenue, including UAM, of  €35m in 2022  Cost development over 2018-2022 lower than inflation  EBIT margin at 17-18% in 2022  Capex of  €650m over 2018-2022  Dividend growth of 4% per year, star

  19. Slide 19: Key Take Aways

    Key Take Aways  Strong traffic momentum throughout the year continuing also into 2018 despite specific airline issues and ongoing limitations on Libyan airspace  Continuing to deliver strong execution on cost efficiency measures, driving margin expansion and cash flow  Non-regulated business cont

  20. Slide 20: 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

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