Toscana Aeroporti

Investor Presentation • Oct 9, 2020

Company Presentation

Italian Stock Market Opportunities 2020-III - Virtual Video Conference

October 9th, 2020

Table of contents

• 1. Toscana Aeroporti at a glance
• 1. Responses to Covid-19
• 1. 1H 2020 Results
• 1. Business Update

Toscana Aeroporti S.p.A. Company Presentation

1. Toscana Aeroporti at a glance

Toscana Aeroporti - milestones

March 2014

Corporación América the largest private operator by number of airports (52 airports mainly in Latin America and Europe) - launches two takeover bids for the companies that operate the Pisa (SAT) and Florence (AdF) airports

June 1st, 2015 Effective date of the merger by incorporation of AdF (Florence Airport) into SAT (Pisa Airport).

Toscana Aeroporti - the 4th Italian Airport System - is born

July 2014 SAT and AdF are jointly controlled by Corporación América

July 1st, 2018 Spin-off of the Ground Handling business to Toscana Aeroporti Handling

Toscana Aeroporti shareholders structure

from infrastructure enhancements

KEY HIGHLIGHTS

Integrated airport system with 2 airports, each with its own features.

v

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• 8.3 million passengers in 2019, (Pisa 5.4M, Florence 2.9M).
• Tuscany: the 3rd Italian region in terms of foreign tourism arrivals and the 5th Italian region for GDP. Incoming
• Significant potential to be unlocked through new infrastructure investments.

KEY METRICS (FY2019)

2	Airports
27 years
8.3 mln	Passengers traffic
78,951	Aircraft movements
13,184	Tons of Cargo
130 mln	Total Revenues

Solid economic track record supported by synergies achieved through FLR&PSA merger

(*) as at October 8th, 2020

Toscana Aeroporti S.p.A. Company Presentation

2. Responses to Covid-19

COVID-19 Market environment

operations during the Covid-19 emergency

Responses to COVID-19: actions taken to restore airport operations Ensuring a safe experience for staff and travellers

• Quick shift to remote work. Only necessary personnel working on premises
• Adoption and implementation of certified Health & Hygiene safety protocol and Personal Protective Equipment provided

• Enhanced and consistent communication with travellers about new health & hygiene safety protocols via the channels, both digitally and physically at airports
• Clear signage throughout the airport to inform travellers

Responses to COVID-19: actions taken to restore airport operations Rebuilding trust & confidence

TOSCANA AEROPORTI TRIAGE (PRE-SCREENING)

Responses to COVID-19: actions taken to restore airport operations New commercial agreements finalized with airlines

TA DESTINATIONS AIRLINES

Responses to COVID-19: Opex reduction & Cash preservation

• Personnel costs: activated the CIGS/Extraordinary Wages Guarantee Fund (State´s help to cover part of the in addition to mandatory use of accrued holiday leave and, where possible, smart-working;
• Supplier contracts: renegotiated contractual terms with suppliers, where possible;
• Maintenance, operational and utility expenses: reduced expenses due to lower traffic handled, to Florence airport closure and part of Pisa airport closed;
• Concession fees: approved by the regulator the deferral of semi-annual concession fee payment to January 2021, originally due July 2020. The calculation to be based on actual number of passengers in 2020.
• Dividend: revoked distribution of dividends for FY2019;
• Financing: defined an agreement with a pool of leading financial institutions regarding a financing transaction for a total of 85 million, backed by SACE guarantees within the framework of the programme "Garanzia Italia".
• Capex: investments have been subject to extensive review, sorting out those related to regulatory requirements or to maintain high quality and security standards and airport safety.

OPEX REDUCTION CASH PRESERVATION

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Toscana Aeroporti S.p.A. Company Presentation

3. 1H 2020 Results

1H2020 Toscana Aeroporti traffic results

Significant drop due to COVID-19

1H2020 Highlights

1H results severely impacted by the health emergency caused by Covid-19.

Operating revenues, impacted by the reduction in traffic volumes and the closure of nearly all commercial activities, amounted to 19.5 million, decreasing by 64.0% compared to 54.1 million in H1 2019. Both Aviation and Non-Aviation revenues decreased (-66.4% and -57.3%, respectively).

EBITDA negative at 5.4 million, compared to a positive 15.6 million in H1 2019

Focus on 2Q2020 results

Successful implementation of costs reduction measures

	1Q 2019	1Q 2020	%	2Q 2019	2Q 2020	%
PASSENGERS	1,423,169	1,005,652	(29%)	2,365,755	23,582	(99%)
MOVEMENTS	14,150	11,307	(20%)	22,446	1,792	(92%)
( /000)	1Q 2019	1Q 2020	%	2Q 2019	2Q 2020	%
Aviation revenues	17,347	13,651	(21%)	27,465	1,414	(95%)
Non Aviation revenues	6,722	5,308	(21%)	8,775	1,316	(85%)
Network development expenses	2,434	2,145	(12%)	3,792	57	(98%)
TOTAL OPERATING REVENUES	21,635	16,814	(22%)	32,448	2,673	(92%)
Others revenues	396	298	(25%)	379	53	(86%)
Revenues for construction services	1,578	2,374	50%	1,943	1,321	(32%)
TOTAL REVENUES	23,609	19,486	(17%)	34,770	4,047	(88%)
Operating expenses	19,640	18,145	(8%)	20,517	7,768	(62%)
Costs for construction services	1,027	1,964	(91%)	1,570	1,052	(33%)
TOTAL COSTS	20,667	20,109	(3%)	22,087	8,820	(60%)
EBITDA	2,942	(622)	n a	12,683	(4,773)	n a

Total costs

Sustainable cost savings achieved

PERSONNEL COSTS

Personnel costs down by -36,6% thanks to:

• Extraordinary Wages Guarantee Fund for all employees in service;
• use of accumulated holiday leaves;
• remote working arrangements.

SERVICE COSTS

Service costs (-38,5%) decline due to:

• renegotiating contractual terms with suppliers, where possible;
• lower costs directly related to traffic figures;
• lower utility costs.

CONSTRUCTION COSTS

Construction costs (+16,2%) due to higher investments related to concession rights.

Net financial debt

( /000)	1H 2020	FY 2019		1H 2019
CASH AND CASH EQUIVALENTS	15,908	19,863	(3,954)	6,653
Current bank loans	41,015	20,010	21,005	28,005
Current portion of non-current debt	4,858	4,930	(72)	8,598
Other current payables to leasing companies	409	410	(0)	398
CURRENT FINANCIAL INDEBTEDNESS	46,282	25,349	20,933	37,001
Net current financial debt	30,374	5,486	24,887	30,348
hloans	21,113	23,352	(2,238)	22,011
Other non-current payables to leasing companies	4,089	4,239	(150)	4,212
NON-CURRENT NET FINANCIAL INDEBTEDNESS	25,203	27,590	(2,388)	26,223
NET FINANCIAL DEBT	55,576	33,077	22,499	56,571

The main differences compared to 1H 2019 depend of increase in liquidity, following the short-term bank loan taken out and the revoke the proposed distribution of dividends, offset by non current bank loan repaid.

Toscana Aeroporti S.p.A. Company Presentation

4. Business Update

Significant events occurred after June 30th, 2020

NEW FINANCING ( 85 MLN) GUARANTEED BY SACE

August 7 th , 2020 TA has defined an agreement with a pool of leading financial institutions comprised of Intesa Sanpaolo and BNL-BNP Paribas Group regarding a financing transaction for a total of 85 million, backed by SACE guarantees pursuant to the provisions of Decree-Law No. 23/2020 (the within the framework of the programme "Garanzia Italia".

TUSCANY REGION FUNDS ( 10 MLN)

Regional Law No. 75, August 4 th , 2020: the Tuscany Region agreed to allocate 10 million to Toscana Aeroporti in 2020 as grants dedicated to operational costs and investments in order to support the infrastructure activity.

TWO-YEAR EXTENSION OF AIRPORTS CONCESSIONS

Law No. 77 - July 17, 2020: in order to contain the economic effects of the Covid-19 the epidemiological emergency and of the contagion containment measures adopted by the Italian Government and the Regions, the terms of the concessions for the management and development of airport activity have been extended by two years.

3Q2020 traffic results

• Adapting airports to new environment, implementing measures to minimize the risk of infection of passengers and employees while ensuring uninterrupted operations
• In collaboration with the aviation industry and regulators, setting and redefining new, customized safety and health protocols monitored and approved by infectious diseases experts
  • Sanitization & social distance measures
  • Screening & biosecurity control procedures for all passengers entering the airport terminals
  • Implementation of digital solutions in order to limit the contact with airport equipment and reduce crowding

REGAIN

CONFIDENCE IN TRAVELLING

Pisa airport terminal development plan

The plan to expand the terminal of the Pisa airport envisages works aimed at increasing 6.5 million passengers.

Florence Airport new runway and terminal development plan

New runway of 2.400 metres and a new terminal with the aim of reaching the target of 4.5M passengers

FLR Masterplan next steps

Just ONE integrated environmental procedure for FLR Masterplan to be filed with the Italian Ministry of Environment, instead of two different procedures, one to be addressed to the Region of Tuscany for the Regional Plan and another to be filed with the Italian Ministry of Environment for the Masterplan

IR dates & contacts

2020 Financial calendar

Annual General Meeting: Monday, April 29 Q1 interim release: Tuesday, May 5 6M interim report: Tuesday, August 4 Q3 interim release: Tuesday, November 3

IR contacts

Gabriele Paoli Phone: +39 050 849 240 Phone: +39 055 3061 693 Email: gabriele.paoli@toscana-aeroporti.com

Toscana Aeroporti S.p.A.

Via del Termine n. 11 50127 - Firenze

Disclaimer

This document has been prepared by Toscana Aeroporti S.p.A. solely for information purposes and for use in presentations of the Company. The information contained herein has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the company, its affiliates, or its representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. This document includes forward-looking statements. These forwardlooking statements express current expectations and projections about future events, involve predictions and are subject to a number of factors that may influence the accuracy of the statements and the projections upon which the statements are based. Prospective investors are cautioned not to place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in many cases, beyond our control. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed in this document might not occur and no assurance can be given that the anticipated results will be achieved. Actual events or results may differ materially as a results of risks and uncertainties facing Toscana Aeroporti S.p.A.. Such risks and uncertainties include, but are not limited to increased competition and regulatory, legislative and judicial developments that could cause actual results to vary materially from future results indicated, expressed or implied in such forwardlooking statements. Moreover, any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

Toscana Aeroporti S.p.A. Company Presentation

Appendix

Aviation: 2019-2022 regulated tariffs

• REAL PRE-TAX WACC 7.27%
• RAB 83.6M
• PRE-TAX WACC 7.37%
• RAB 68.6M

Long-Term Concession agreements securing future revenue streams

TWO-YEAR EXTENSION OF AIRPORTS CONCESSIONS

Law No. 77 - July 17, 2020: in order to contain the economic effects of the Covid-19 the epidemiological emergency and of the contagion containment measures adopted by the Italian Government and the Regions, the terms of the concessions for the management and development of airport activity have been extended by two years.

Pisa

Proven LCC business model in one of main tourist destinations (Toscana) also focused on the development of intercontinental flights

Main routes by country

#	Country	%
1	Italy	27%
2	United Kingdom	21%
3	Spain	10%
4	Germany	7%
5	France	5%
6	Netherland	5%
7	Russia	3%
8	Others	22%

LCC Rationale

• O&D airport, favorably located in the middle of the European Union, providing access to various geographies and serving as a convenient destination for airlines
• Gateway to Tuscany and central Italy, directly linked to the Italian railway system
• Located in a world-class touristic destination, attracting ~6 mln visitors per year to the Leaning Tower of Pisa
• Efficient business operations, consistently delivering healthy profit margins while offering services and infrastructure at a competitive cost
• Potential to leverage on existing airlines relationships and predominance in the region to foster expansion strategy

Incoming

3%

18%

3%

Others

74% 26% Pax traffic Domestic International

88% Business

Data year: 2019

1. Toscana Aeroporti at a glance	2. Responses to Covid 19	3. 1H 2020 Results	4. Business Update	Appendix
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Florence

Profitable intra-EU airlines service located in one of Main tourist destinations and leading high fashion centers with one of highest yield per passenger

5

A key tourist attraction in Italy

Country %

1 France 23%

2 Germany 17%

3 Italy 15%

4 Spain 14%

6 Netherland 8%

7 Switzerland 6%

8 Others 8%

Kingdom 9%

United

Pax profile

2015-2019 Florence & Pisa airports passenger traffic

1H2020 Florence & Pisa airports traffic

SIGNIFICANT DROP DUE TO COVID 19

1. Toscana Aeroporti at a glance 2. Responses to Covid 19	3. 1H 2020 Results	4. Business Update	Appendix
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1H 2019 1H 2020

1H2020 Aviation results

AVIATION OPERATING REVENUES BREAKDOWN OF AVIATION

( /000)	1H 2020	1H 2019		%
Handling	4,989	14,059	(9,070)	(64.5%)
Pax boarding fees	4,039	13,838	(9,800)	(70.8%)
Landing/departure fees	2.795	7,555	(4,760)	(63.0%)
Pax security fees	1,092	3,721	(2,629)	(70.7%)
Stopover fees	653	613	41	6.6%
PRM assistance fees	594	1,881	(1,287)	(68.4%)
Baggage security fees	378	1,741	(1,363)	(78.3%)
Centralised infrastructures	377	1,158	(781)	(67.5%)
Cargo fees	149	247	(98)	(39.7%)
TOT. AVIATION OP. REVENUES	15,065	44,813	(29,747)	(66.4%)

MAIN REASONS:

• Florence airport was closed from March 14, 2020 to May 3, 2020 with a partial resumption of commercial line operations starting from May 29, 2020. The deviation pax apr-jun 20/19 is equal to - 98.6%.
• Pisa airport remained open with a single flight of Alitalia and DHL freight traffic. The deviation pax aprjun 20/19 is equal to -99.2%.

1H2020 Non Aviation results

NON AVIATION OPERATING REVENUES

( /000)	1H 2020	1H 2019		%
Car rentals	1,152	2,729	(1,578)	(57.8%)
Retail	1,075	2,768	(1,693)	(61.2%)
Parking	1,054	3,278	(2,223)	(67.8%)
Advertising	948	1,046	(98)	(9.3%)
Real Estate	718	877	(159)	(18.2%)
Other subconcessions	534	1,169	(635)	(54.3%)
Food	501	1,770	(1,269)	(71.7%)
Vip Lounges	386	1,442	(1,056)	(73.2%)
Cargo agency	172	183	(11)	(5.8%)
Air ticketing	84	236	(151)	(64.2%)
TOT. NON AVIATION OP. REVENUES	6,624	15,497	(8,873)	(57.3%)

BREAKDOWN OF NON AVIATION REVENUES (1H 2020)

Real Estate

1H2020 EBITDA

1H RESULTS SEVERELY IMPACTED BY THE HEALTH EMERCENCY CAUSED BY COVID-19

1H2020 Cash Flow

Cash flow from investing activities:

Capex ( 4,2M):

• intagible assets ( 3.8M);
• tangible assets ( 0.4M).

Cash flow from financial activities:

• Loans taken out ( 21.0M);
• Repayment of loans ( 2.3M);
• Finance expense for rights of use ( 0.3M).