Fnm S.p.a. · MIL:FNM
Fnm — Euronext Sustainability Week and Infrastructure & Energy Day 2024
70 slides from Fnm's conference presentation, Sep 6, 2024
Slide 1: Euronext | FNM Group Sustainability Week and Infrastructure & Energy Day
Euronext | FNM Group Sustainability Week and Infrastructure & Energy Day 9 - 12 September 2024
Slide 2: 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 3: 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 27% higher than the EU average1 • Regional unemployment rate at 4.0%, far below the Italian and European average (7.7% and 6.1% respectively)1
Slide 4: 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 Highway from Milan to Serravalle Scrivia (A7 86Km) Motorways • • Milan West, East and North ring roads (A50 33Km, A51 29Km, A52 19Km) 185 Km • Pavia West r
Slide 5: Key investments in Associates and Joint Ventures
Key investments in Associates and Joint Ventures 3 Other 1 Road LPT services in Como and its Province JV with Trenitalia (50% stake) active (25.0% stake) in Rail Local Public Transport (see slide 6 for details) Equity interests in strategic assets JV with Deutsche Bahn (40% stake) active in linked t
Slide 6: Lombardy
Among the most important LPT railway players in Europe excluding the National train operators Around Passengers per day on regional trains Other 700,000 Trenord (‘000 pax/day)1 24% 28% Lazio Lombardy faces a complex Pax/day 2.9mln operating environment with high pax/day in Tuscany rail traffic conge
Slide 7: Digital platforms | A new approach to mobility
Digital platforms | A new approach to mobility built around existing services but tailored to the needs of specific communities Improve accessibility to services and related transportation according to the Mobility as a Community (MaaC) approach, delivering an integrated transport framework based on
Slide 8: A strategic infrastructure for Lombardy’s road system
A strategic infrastructure for Lombardy’s road system • FNM holds though MISE a 36.7% stake in APL (Regione Lombardia controls the remaining 63.3%) + a shareholder loan of nominal €150mln (€61.1mln NBV at 30 June 2024) • Total length of ≈130km, of which 62km in operation since 2015 (A, B1, A59, A60)
Slide 9: The new outer road system in Milan
The new outer road system in Milan • FNM holds though MISE a 11.3% stake in TE1 (ASTM controls the remaining 88.7%) • The new outer ring road system was needed to improve traffic flow: A35 rationalize the congested mobility following significant urban expansion, especially towards the east, integr
Slide 10: Main financial highlights
Main financial highlights Revenues Adjusted EBITDA Contracted 605.4 618.1 Contracted 193.1 211.3 Regulated** 543.7 Regulated 165.3 474.1 149.3 300.6 308.0 107.5 87% 87% 87% 69.6 80% 84% 72% 76% 75% 88% 64% 85% 25% 2019 2020 PF* 2021 PF* 2022 2023 IH24 PF* 2019 2020 PF* 2021 PF* 2022 2023 IH24 PF* FN
Slide 11: Financial sustainability
Financial sustainability Adjusted Net Financial Position Adj. NFP/EBITDA (annualized) 875.6 755.6 766.9 VIRIDIS Bond for €650mln issued on 13 October 2021 in 4.6x 642.8 4.0x 4.1x connection with the acquisition of MISE 3.1x 43.8 (39.3) 2019 2020 PF* 2021 PF* 2022 2023 1H24 PF* See slide 34 / 45 for
Slide 12: Acquisition of Viridis
The FNM Group Acquisition of Viridis Sustainability initiatives 1H 2024 Economic & Financial Results Strategic Plan & Targets Appendix 12
Slide 13: The rationale of the acquisition
The rationale of the acquisition • Strengthen the core mobility infrastructure business o strategic path that leads FNM to become a producer of electricity from renewable sources • Structure in place with established expertise o 38 FTE capable of managing all the main stages of value chain BUSINESS
Slide 14: Acquired operational facilities with geographical diversification
Acquired operational facilities with geographical diversification and limited market exposure, flexible development of pipeline Installed capacity + Ready to Build under construction 54 MW 16 MW F.I.T. All-inclusive F.I.P. Market • Installed capacity + under construction: ≈20% of plan revenues by 20
Slide 15: Plants overview as of June 2024
Plants overview as of June 2024 Commissioning of 4 solar PV plants expected in 2H24 reaching c. 83 MW of installed capacity Technology Route to Market Tariff Capacity (MW) COD1 Expiration PV-Solar Conto Energia 2 Feed-in premium 346 €/MW 5.7 4Q 2010 4Q 2030 PV-Solar Conto Energia 4 Feed-in premium a
Slide 16: Incentive mechanisms PV 2007 - 2022
Incentive mechanisms PV 2007 - 2022 2005 - 2007 - 2010 - 2011 - 2012 - 2019 - 2007 2010 2011 2012 2013 today Incentive Conto Energia I Conto Energia II Conto Energia III Conto Energia IV Conto Energia V Decreto FER 1 Only energy All the energy All the energy All the energy All the energy All the ene
Slide 17: Sustainability initiatives
The FNM Group Acquisition of Viridis Sustainability initiatives 1H 2024 Economic & Financial Results Strategic Plan & Targets Appendix 17
Slide 18: Introducing hydrogen into a path of energy transition
Introducing hydrogen into a path of energy transition is a strategic development area for the FNM Group A sustainable mobility system in Val Camonica along the Brescia-Iseo-Edolo non-electrified railway line, gateway to the Milano- Cortina 2026 Winter Olympic Games, for an overall investment of €3
Slide 19: FILI is one of the largest regeneration projects in Europe
FILI is one of the largest regeneration projects in Europe MILANO CADORNA RAIL STATION 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 air quality MILANO
Slide 20: Key strategic initiatives
The FNM Group Acquisition of Viridis Key strategic initiatives Sustainability initiatives Strategic Plan & Targets Appendix 20
Slide 21: IH 2024 Financial Highlights – REPORTED
IH 2024 Financial Highlights – REPORTED1 REVENUES ADJ. EBITDA EBIT +1.3% +6.0% -16.5% 301.6 -1.3% 305.6 100.0 +0.5% 106.0 48.5 excl. Viridis excl. Viridis 40.5 33.1% 34.7% IH 2023 IH 2024 (€mln) IH 2023 IH 2024 (€mln) IH 2023 IH 2024 (€mln) ADJ. NET RESULT GROUP NET RESULT ADJ. NFP +36.2% -27.2% -9.
Slide 22: Motorways - traffic trend on MISE network
Motorways - traffic trend on MISE network (vehicles-km) Traffic performance benefits from the adjustment of the conventional mileage of the Northern Ring Road from March 2023 320 300 280 260 240 220 Light vehicles +2.2% 200 Heavy vehicles 1,424 1,534 1,568 180 1,110 1,221 1,251 160 140 314 313 316 I
Slide 23: LPT - mobility demand for bus and rail transport
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, especially for urban transportation BUS TRANSPORT TRENORD -10.6% -6.4% 39.5 110.2 2.2 103.2 34.9 35.3 2.0 2.1 93.1 +10.8% +1.1% 37.3 32.9 33.2 IH
Slide 24: Renewable energy production
Renewable energy production Commissioning of 2 solar-PV plants from Dec.’23 drives production up despite low irradiance and full capacity only from March ‘24 INSTALLED CAPACITY (MWp) ENERGY PRODUCTION (MWh) 47.0 39,157 2.0 33,553 7,874 36.8 2.0 7,905 +27.7% +16.7% 45.0 34.8 31,283 25,648 IH 2023 IH
Slide 25: IH 2024 Group net result – REPORTED
IH 2024 Group net result – REPORTED Positive operating performance impacted by higher D&A, strong rebound of companies consolidated at equity -9.3% (0.9) -3.1mln (13.1) Strong result from Trenord thanks to new 33.4 Public Service Contract 6.0 Higher borrowing costs 30.3 offset by income on cash High
Slide 26: Adj. EBITDA evolution
Adj. EBITDA evolution Growth driven by good performance of motorways and Viridis acquisition REPORTED Adj. EBITDA (€ mln) IH 2023 IH 2024 ∆€ ∆% Motorways 70.0 80.0 10.0 +14.3% 15% Ro.S.Co. & Services 22.1 16.4 (5.7) -25.8% Railway infrastructure 4.8 0.4 (4.4) -91.7% 1% Road passenger mobility 3.1 3.
Slide 27: Adj. EBITDA by segment – Motorways
Adj. EBITDA by segment – Motorways +10.0mln +14.3% 80.0 2.3% tariff increase from January 1st and adjustment of the conventional (2.8) 2.3 mileage of the Milan North Ring 5.2 Road from March ‘23 • Staff costs up by €1.5mln related to the reorganization initiated in 2023 (+25 FTE) Completion of works
Slide 28: Adj. EBITDA by segment – Ro.S.Co. & Services
Adj. EBITDA by segment – Ro.S.Co. & Services -5.7mln -25.8% 22.1 Lower leasing revenues on CSA, Coradia, Tilo and TSR trains as a (4.0) result of the new framework agreement with Trenord (0.8) (1.5) 16.4 0.6 • Higher IT expenses • Staff costs up following headcount increase (+9 FTE) and renewal of C
Slide 29: Adj. EBITDA by segment – Railway infrastructure
Adj. EBITDA by segment – Railway infrastructure -4.4mln -91.7% • Higher costs for outsourced design, 1.2 technical performance, safety, and supervision in rail maintenance 0.6 (3.3) • Staff costs up following headcount increase (+20 FTE) and renewal of CCNL Frontloading of works in IH 2023 due 2.4 t
Slide 30: Adj. EBITDA by segment – Road passenger mobility
Adj. EBITDA by segment – Road passenger mobility +0.6mln +19.4% Mainly +15% tariff update (0.8) (0.2) 3.7 on ATV bus passes 0.4 1.5 3.1 Higher unit cost, (0.3) 2.8 Covid contributions for LPT partially compensated services made available by headcount with “Patto per il TPL” decrease (-33 FTE) 5.9% 6
Slide 31: Adj. EBITDA by segment – Energy
Adj. EBITDA by segment – Energy +1.9mln +37.3% 7.0 0.6 (0.4) 0.4 1.3 Lower productivity essentially 5.1 due to whether conditions below historical average Extra-profits paid during 2023 to GSE in compliance with regulatory measures to contain the increase in energy prices (the so-called Sostegni ter
Slide 32: IH 2024 Capex analysis
IH 2024 Capex analysis Investments mainly driven by rescheduling of works on motorway and delay in rolling stock deliveries/revamping of TAF trains € mln IH 2023 IH 2024 ∆€ Motorways 16.2 6.5 (9.7) Ro.S.Co. & Services 7.8 5.4 (2.4) Railway infrastructure 3.0 10.8 7.8 Road passenger mobility 17.4 2.0
Slide 33: Consolidated Cash Flow
Consolidated Cash Flow Cash flow impacted by Viridis acquisition, NWC and seasonality on crediting of grants on railway infrastructure 106.0 Net CAPEX: €136.4mln (17.7) (2.6 (34.4) Mismatch of reimbursement vs actual investment, paid in advance on the achievement of certain milestones by (€mln) Acqu
Slide 34: Net Financial Position evolution
Net Financial Position evolution Adj. NFP impacted by Viridis acquisition and accounting of the related non-monetary financial debt 875.6 ∆ Adj. NFP “cash” +€117.6mln 51.8 823.8 3.8 (113.2) 37.6 Non-monetary debt 762.4 related to Viridis 80.0 acquisition: Cash deriving from - Put option of 37.8mln t
Slide 35: Gross debt composition at 30 June 2024
Gross debt composition at 30 June 2024 Gross debt (€mln) 8% Bond 5% 3% Bridge loan (92.7) Gross debt 10% EIB 1,020.6 Gross Debt: MISE bank debt structure by 2% €1,020.6 mln1 875.6 instrument Viridis bank debt 8% 64% 762.4 237.7 Leasing (IFRS 16) 113.2 Other 18% Gross debt Current portion maturity No
Slide 36: Maturity structure at 30 June 2024
Maturity structure at 30 June 2024 Debt average life 2.3 years, in line with total assets structure (€mln) Bond Bridge loan Viridis bank debt* EIB Mise bank debt 689.9 146.7 650.0 85.0 33.3 8.4 6.3 38.6 3.1 6.5 8.4 6.7 47.0 23.5 25.0 2024 2025 2026 After 2026 * Values include the portion of debt tha
Slide 37: Strategic Plan & Targets
The FNM Group Acquisition of Viridis Key strategic initiatives Sustainability initiatives Strategic Plan & Targets Appendix 37
Slide 38: 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 39: Strategic plan targets across the sustainability pillars
Strategic plan targets across the sustainability pillars Targets Metrics 2022 2023 Target 2025 Entry in the motorway business Vehicles-km driven on the motorway/year 3.0 bln vkm 3.2 bln vkm 3.1 bln vkm Strengthening of road LPT Passengers transported by bus services/year 59.09 mln pax 69.9 mln pax
Slide 40: Strategic plan targets across the sustainability enablers
Strategic plan targets across the sustainability enablers Targets Metrics 2022 2023 Target 2025 Innovation and Continuos innovation Resources for technological/digital R&D projects cum. €5.1 mln cum. €8.1 mln € 11 mln (cum 21-25) data management Energy efficiency Emissions and consumption reduction
Slide 41: 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) 69.9mln in FY32 78 79 80 3.2mln in FY23 77 +12% +8%
Slide 42: Financial Targets FY24 vs FY23
FY 2024 Outlook Guidance confirmed, with slightly lower Adj. NFP and investments Revenues +1% - 5% YoY overall in line YoY excluding the acquisition of Viridis Financial Targets FY24 vs FY23 Adj. EBITDA +5% - 10% YoY overall in line YoY excluding the acquisition of Viridis Adj. EBITDA Margin Slightl
Slide 43: Rescheduling of investments vs Strategic Plan…
Rescheduling of investments vs Strategic Plan… The acquisition and development of Viridis is expected to offset the lower capex realized in ‘21-23 and the effects of reprogramming investments in rolling stock and road passenger mobility compared to the original forecasts for ’24-25 Substantially M&A
Slide 44: … leads to EBITDA generation in line with Strategic Plan targets
… leads to EBITDA generation in line with Strategic Plan targets but with a different mix ≈ €250mln +5/10% 211.4 6.2 193.1 7.7 42.7 165.3 5.1 45.5 8.9 46.2 11.9 12.7 153.6 128.0 101.3 2021 PF* 2022 2023 Est. 2024 Est. 2025 Energy Railway infrastructure RoSCo & Services Road passenger mobility Motorw
Slide 45: Adj. NFP evolution takes into account Viridis acquisition
Adj. NFP evolution takes into account Viridis acquisition and the renewal of Ferrovienord’s Service Contract Impact from Viridis acquisition Adj. NFP/EBITDA x3.5 - x4 850-900 766.9 VIRIDIS VIRIDIS 755.6 Put Option + Earn Out Put Option + Earn Out 642.8 Despite Viridis acquisition, Adj. NFP “Core” su
Slide 46: Appendix
The FNM Group Acquisition of Viridis Key strategic initiatives Sustainability initiatives Strategic Plan & Targets Appendix 46
Slide 47: Ro.S.Co. & Services
Ro.S.Co. & Services la vita in movimente
Slide 48: 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 FNM Spa’s real esta
Slide 49: Ro.S.Co. & Services – Fleet composition
Ro.S.Co. & Services – Fleet composition Rolling Stock Lessee Nr. NAV @31/12/2023 TAF Trenord 25 23.4 TSR Trenord 19 142.6 CSA Trenord 8 22.7 CORADIA Trenord 10 51.7 TILO Trenord 9 82.2 Train sets 71 322.6 E 483 DBCI 8 10.8 DE 520 DBCI (10) Trenord (4) 14 2.7 E 474 DBCI 1 1.0 EFFISHUNTER 1000 Trenord
Slide 50: 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 2023 Europe, both in terms of size and in te
Slide 51: New 10 years Public Service Contract from Dec.’23
New 10 years Public Service Contract from Dec.’23 OLD NEW 2023-2033 Three consecutive contracts with a heterogeneous overall Regione Lombardia (RL) is the competent authority for the structure since the establishment of a single railway company entrustment of a comprehensive PSC in which schedul
Slide 52: Railway Infrastructure
Railway Infrastructure =F 52 — la vita in movimente
Slide 53: 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 54: 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 55: 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 56: 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 57: 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 58: Road Passenger Mobility
Road Passenger Mobility = 8 — la vita in mavimente
Slide 59: 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 60: 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 61: 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 31/12/2025 223 Km Lecco - Varese Tariff Net Cost + regulated FNMA (Brescia) L
Slide 62: Motorways
Motorways = 2 =FNM la vita in mavimente
Slide 63: 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, 280.7 297.2 • Established in 1951 in Assago, MISE i
Slide 64: Motorways – MISE traffic evolution (vehicles-km)
Motorways – MISE traffic evolution (vehicles-km) 320 300 280 260 240 220 200 Light vehicles Heavy vehicles 3,115 2,976 3,156 180 2,649 2,117 160 2,512 2,039 2,355 2,535 1,585 140 603 533 610 621 621 2019 2020 2021 2022 2023 120 (mln vehicles-km) 100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20
Slide 65: Motorways – Update of 2020-2024 Economic Financial Plan
Motorways – 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 2024 9 January 2023 Regional administrative court 7 August 2023 Transmission from MIT to ART 24 January 2024 September 2024 AR
Slide 66: 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 67: 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 68: Motorways – APL & TE traffic evolution (vehicles-km)
Motorways – APL & TE traffic evolution (vehicles-km) APL 299.5 316.6 286.8 250.8 193.3 232.2 239.3 256.6 196.0 148.7 54.6 44.6 54.8 60.2 60.0 2019 2020 2021 2022 2023 TE 357.7 328.4 331.7 299.3 227.2 228.5 219.4 242.2 192.2 140.7 99.9 86.5 107.1 112.3 115.5 2019 2020 2021 2022 2023 Light vehicles He
Slide 69: 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 70: Contacts
Contacts Valeria Minazzi Investor Relations Director Fixed line: +39 02 8511 4302 valeria.Minazzi@fnmgroup.it investor.relations@fnmgroup.it
FNM — Euronext Sustainability Week and Infrastructure & Energy Day 2024 on 6ix