Toscana Aeroporti

Investor Presentation • Oct 3, 2019

Analyst Presentation

October 3, 2019

Table of contents
1. Toscana Aeroporti at	glance a
2. Features of Toscana Aeroporti
3. Financials
4. Growth Strategy
5. Annexes

Toscana Aeroporti S.p.A. Analyst Presentation

1. Toscana Aeroporti at a glance

1. Toscana Aeroporti at a glance Toscana Aeroporti - milestones

1. Toscana Aeroporti at a glance Toscana Aeroporti - milestones

Shareholders structure

*Direct shareholder. Declaring subject Southern Cone Foundation.

1. Toscana Aeroporti at a glance

Pax breakdown by origin

22%

Domestic

Toscana Aeroporti - milestones

KEY HIGHLIGHTS

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

v

• The 4 th Italian airport system - 8.2 million passengers in 2018, (Pisa 5.5m, Florence 2.7m).
• v Tuscany: the 3 rd Italian region in terms of foreign tourism arrivals and the 5 th Italian region for GDP.
  • Significant potential to be unlocked through new infrastructure investments.

KEY METRICS (FY2018)

2
28 years
8.2 mln
77,335
11,893
132 mln

28,7%

Outgoing

Pax profile

Aviation

Pisa

Toscana Aeroporti S.p.A. Analyst Presentation

2. Features of Toscana Aeroporti

1. Features of Toscana Aeroporti Features of Toscana Aeroporti

1. Unique business model

1. Strong catchment area and attractiveness of the «Tuscany»brand

2. Top ranked airport system

3. Solid economic and financial results

Unique business model x x x Strong catchment area and attractiveness of the «Tuscany» brand

Solid economic and financial results

Pisa

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

Pax profile

Incoming

Data year: 2018

2. Features of Toscana Aeroporti
-------------------------------------	--

	Strong catchment area and	Top ranked
Unique business model	x attractiveness of the « » brand Tuscany	x airport system	x

Solid economic and financial results

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

A key tourist attraction in Italy

Subsidiaries

Florence airport.

development of the two airports - Florence and Pisa.

2. Features of Toscana Aeroporti 24.000 26.000 28.000 30.000 32.000 2015 2016 2017 Tuscany pro-capite GDP Italian pro-capite GDP 92% 92% 92% 8% 8% 8% 2015 2016 2017 Other Regions Tuscany Number of inhabitants by drive distance from the airports: +4.3% CAGR 2015/2017 +2.9% +4.4 % 412,3 417,3 448,1 Export *GDP - Excluding autonomous regions with special statute. Source: 2016 Istat data Population Source: 2017 Istat data - N. companies Source: 2017 movimprese data Unique business model x x Strong catchment area and attractiveness of the «Tuscany» brand Top ranked airport system World famous Italian brands and multinational corporations Solid economic and financial results Tuscany per capita GDP 30,041 Italian per capita GDP 27,719 Per capita GDP

PSA People Mover FLR New Tramway

Florence (Tramway) and Pisa (Pisa Mover) airports are interconnected with railway

Unique business model Top ranked Strong catchment area and attractiveness of the «Tuscany» brand

airport system x Solid economic and financial results

Florence & Pisa airports passenger traffic

- 2018 -
#	Airports	Passengers	%
	Rome (System)	48,834,856	+4.2
	Milan (System)	46,976,551	+6.2
	Venice (System)	14,493,563	+10.7
1	Catania	9,933,318	+8.9
2	Naples	9,932,029	+15.8
3	Bologna	8,506,658	+3.8
4	Palermo	6,628,558	+14.8
5	Pisa	5,463,080	+4.4
6	Bari	5,030,760	+7.4
7	Cagliari	4,370,014	+5.1
8	Torino	4,084,923	-2.2
9	Verona	3,459,807	+11.6
10	Olbia	2,999,253	+6.7
11	Lamezia Terme	2,756,211	+8.2
12	Florence	2,719,081	+2.3
ITALIAN AIRPORT SYSTEM		185,681,351	+5.9
TUSCANY AIRPORT SYSTEM		8,182,161	+3.7

Florence & Pisa Airports outperforming Italian Airport system growth (+3.6%)

TA CAGR 2010-2018 (+4.4%)

Net of the estimated passenger loss at Florence Airport due to of re-routed/cancelled flights, in 2018 TA passenger traffic would have grown by 5.3%

* Source: Assaeroporti (on a total of 35 Italian airports)

2019 Pisa Airports news

New flight from/to Casablanca operated by Air Arabia (two weekly flights).

NEW FLIGHTS NEW FREQUENCIES

Weekly flight from/to Helsinki during the summer season.

Replaced Lufthansa on the Pisa Munich route by increasing its capacity to operate up to two flights a day.

In Summer 2019 concentrates all the Pisa operations on London Heathrow hub, operating 18 weekly flights and ensuring better connection with its world wide network.

New flights starting from April: Brussels (three times a week), Nuremberg (two flights a week) and Kalamata (twice a week in August and September only). Starting in the winter season the new connection to Bucharest Otopeni with two flights a week.

* Adjusted: net of non recurrent items.

Toscana Aeroporti S.p.A. Analyst Presentation

3. Financials

3. Financials

Revenues

* The first half-year of 2018 benefited from the proceeds received following a favorable judgement handed down by the Court of Appeal of Rome with respect to the dispute between Ministry of Transport and Toscana Aeroporti, and concerning the adjustment to inflation of the Florence airport rights for prior financial years ( 3.9 million).

3. Financials Operating Revenues

Aviation Top Aviation customers

Aviation revenues

AERONAUTICAL REVENUES SOURCES

Aviation fees & tariffs

Departure Fees: charged to each departing passenger. Varies depending on whether the flight is within the European Union or international.

Landing & Parking Fees: charged for landing and parking, dependent on the MTOW (maximum takeoff weight) of the aircraft and time spent parked at the airport.

Pax security fee: charged to departing passengers. Revenue from such fees is to be invested exclusively in security infrastructure.

Handling fees: charged to airlines based on the handling services provided and central infrastructure charges.

1. Financials

Aviation

NETWORK DEVELOPMENT EXPENSES

NETWORK DEVELOPMENT EXPENSES / PAX

Consolidation of financial performance in a stable regulatory framework

RAB of base year equal to 149M PRE-TAX AVERAGE TA WACC 7.32%

3. Financials

Non Aviation

2018 Non Aviation Revenues: 31,2M (27.8% Operational Revenues)

NON AERONAUTICAL REVENUES SOURCES

Car Parking:earned through parking lots located at the airports, through the use of spaces by passengers and others.

Retail: retail revenues are generated by commercial space leased to retail companies, not including food and beverage.

3. Financials

Financials

Solid financial performances with increasing profitability

Net Financial Debt

( /000)	2016	2017	2018	1H2018	1H2019
Cash and cash equivalents	27,448	13,360	14,270	12,430	6,653
Current bank loans	-	5,000	9,501	18,000	28,005
Current portion of the non-current indebtedness	4,456	4,538	4,755	4,705	8,598
Other current payables to leasing companies	-	-	-	-	398
CURRENT FINANCIAL INDEBTEDNESS	4,456	9,538	14,256	22,705	37,001
Non-current bank loans	36,259	32,327	28,164	30,458	22,011
Other non-current payables to leasing companies	-	-	-	-	4.212
NON-CURRENT NET FINANCIAL INDEBTEDNESS	36,259	32,327	28,164	30,458	26,223
NET FINANCIAL DEBT	13,267	28,506	28,151	40,733	56,571

DEBT TO EQUITY RATIO (Debt/Equity)

Net financial debt at June 30, 2019 included overall financial payables of 4.6 million (of which 4.2 million non-current and 398 thousand current financial payables) related to the application of the new IFRS 16 Leases as of January 1, 2019.

1. Financials

A Value Creating Group

• Oct. 2018, 1 st Sept. 27, 2019:

Toscana Aeroporti = +25.4% FTSE:MIB = +6.8%

( )

• Pay-out ratio = 95%
• Dividend yield is 4.9% over the share price as at December 28th, 2018
• EUR 40,1 million of cumulated dividends paid to shareholders in the four years (2015-2018).

Toscana Aeroporti S.p.A. Analyst Presentation

4. Growth strategy

Unlocking Tuscany Airports potential

1. Network extension and passengers traffic increase

1. Non aviation activities growth

2. Infrastructure development

3. Real Estate

FLORENCE PISA

• Developing UE and extra UE traffic targeting the most important capital cities with aircraft compatible with the present runway.
• The construction of infrastructures on schedule will allow Florence Airport to exploit its potential as business city airport and to record high traffic increases both on the Intra-EU and the Extra-EU sector.
• Consolidation of the low cost traffic on the intra-UE destination.
• Progressive network extension: towards Extra-EU (Russia with Pobeda and S7), Atlantic area (USA) and Far & Middle East with Qatar Airways and new airlines such as Air Arabia.
• Cargo: progressive growth with courier operators.

0	రో	S
---	----	---	--	--

Network extension and passengers
traffic increase

2019 Florence Airports news

Vueling: starting from mid September the Spanish airline increased the Florence airport operations basing a 3 rd aircraft and adding connections to Bilbao (twice a week), Munich (five times a week), Prague (four flights a week), Vienna (daily service) and increasing the existing to Barcelona, Amsterdam and Palermo.

Growth Strategy: Non Aviation activities growth

Growth of commercial business opportunities thanks to the construction of the new Florence Terminal and of the new one in Pisa airport.

Expansion of commercial areas, with new spaces created in the recent renovation of the terminal (Florence completed in 2017 and Pisa 0 completed in 2018).

• Partnership in retail with revenues linked also to traffic increase.
• Expansion of the parking business.
• Development of the Rent a Car business: inauguration of a dedicated facility (Palagio degli Spini) and incoming traffic increase.

development Non aviation activities growth Real Estate

Growth Strategy: Non Aviation activities growth

New rent a car area in Florence airport: new Terminal and Logistics at «Palagio degli Spini»

x

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 by 2029.

x

FLR DEVELOPMENT PLAN The chosen option Final configuration

PRESENT INFRASTRUCTURE

• Airport area: 122 Ha
• Length: 1.750 m
• Width: 30 m
• No. 16 stands AAMM (No. 5 General Aviation)

FUTURE INFRASTRUCTURE

• Airport area: 245 Ha
• Divestment Area (park): 22 Ha
• Land expropriation: 145 Ha
• Ecological compensation works: 175 Ha
• Hydraulic works expropriation: 70 Ha
• New 2,400 meters runway
• Width: 45 m
• No. 44 stands AAMM

x

PISA AIRPORT TERMINAL DEVELOPMENT PLAN

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

Infrastructure

x

Toscana Aeroporti Costruzioni

Toscana Aeroporti is planning to undertake a significant investment plan to upgrade and enhance its Florence and Pisa airports.

Objectives:

• Simplifying the upcoming launch of the activities included in the development plan
• Fully controlling the work construction schedule
• Facilitating full control over construction costs and modalities

Toscana Aeroporti has decided to incorporate a company dedicated to the construction activities and subject to its control: TOSCANA AEROPORTI COSTRUZIONI.

The new company is expected to start operating from November 2019

Revision of the Urban Plan of Castello, Municipality of Florence, approved by resolution of June 26, 2018

Network extension and passengers
traffic increase

Growth Strategy: Real Estate Florence Airport

					Hes	Res			Merca-
			SUL Dir Pub Ind Art Dir Priv		Priv	Pub	Tur Ric	Com	to
1	65,500		28.500	4.000				3.000	30.000
B	69.500	69.500
3	18.500	18.500
2	50.544				42.000	5.544		3.000
3	17.000		17.000
4	25.700			24.000				1.700
5	30.000						10.000	20.000
tot	276.744
tot - (B+C)	188.744

The area is subject to a revised urban plan that allows the following urban planned destinations:

• Urban Park (198 acres 800.000 sqm)
• (1) Industrial and manufacturing Mercafir (15 acres 65.500 sqm)
• (5) University Campus or Student Housing (11 acres 25.700 sqm)
• (6) Commercial Retail Park (5 acres 20.000 sqm)
• (6) Hotel (2,5 acres -10.000 sqm)
• (2) Residential Social Housing (5 acres 45.000 sqm)
• (3-4) Industrial and craft area ( 17,000 sqm)

Infrastructure

Growth Strategy: Real Estate Pisa Airport

"Aerotropoli effect"

Integrating passenger traffic volumes with other flows of prospect nonaviation clients who may use the service platform regardless of the terminal traffic

Implementing specific marketing policies to present the airport also to the inhabitants of the city and the surrounding areas and promote it as a platform of commercial/intermodal integrated services, constantly available and very easily accessible

IR dates & contacts

GET IN

CONTACT

1. Growth Strategy

2019 Financial calendar

Annual General Meeting: Monday, April 29 Q1 interim release: Thursday, May 9 6M interim report: Tuesday, August 6 Q3 interim release: Thursday, November 7

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

Toscana Aeroporti S.p.A. Analyst Presentation

5. Annexes

Net Profit and Loss

( /000)	2016	2017	2018	1H 2018	1H 2019
Aviation revenues	89,597	93,945	94,514	43,384	44,813
Non Aviation revenues	26,626	28,070	31,213	14,003	15,497
Network development expenses	-14,281	-15,355	-13,393	-6,771	-6,226
TOTAL OPERATING REVENUES	101,942	106,659	112,334	50,616	54,083
Others revenues	4,257	2,045	6,084	4,835	775
Revenues for construction services	7,230	12,091	13,515	5,595	3,521
TOTAL REVENUES	113,429	120,796	131,933	61,046	58,379
- Operating expenses	77,823	79,564	84,044	40,760	40,158
- Costs for construction services	6,271	11,059	12,054	4,935	2,596
TOTAL COSTS	84,094	90,623	96,098	45,695	42,754
EBITDA	29,335	30,173	35,836	15,351	15,625
EBIT	16,130	17,317	22,755	9,448	8,855
PBT	15,010	15,929	21,481	8,936	8,089
NET PROFIT/(LOSS)	9,814	10,550	14,596	5,880	5,282

Statement of Financial Position

( /000)	2016	2017	2018	1H 2018	1H 2019
Current assets	48,812	51,817	44,710	48,483	48,719
Non-current assets	189,087	197,526	209,160	202,542	214,734
TOTAL ASSETS	237,899	249,343	253,870	251,025	263,453
Current liabilities	60,531	74,257	78,091	81,705	99,928
Non-current liabilities	65,123	61,504	57,251	59,677	53,207
TOTAL LIABILITIES	125,654	135,761	135,342	141,382	153,135
EQUITY	112,245	113,581	118,528	109,643	110,318
TOTAL LIABILITIES AND EQUITY	237,899	249,343	253,870	251,025	263,453

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. The executive responsible for the drafting of the accounting and corporate documents, Marco Gialletti, hereby declares pursuant to clause 2, art.154 bis, decree law 58/1998, that the accounting information in this release is in line with the accounting records and registers.