Aeroporto Guglielmo Marconi Di Bologna

Earnings Release • Nov 11, 2019

PRESS RELEASE

AEROPORTO GUGLIELMO MARCONI DI BOLOGNA S.p.A.: The Board of Directors approves the Group Q3 2019 Results.

Strong growth of the main economic indicators:

• Consolidated Revenues of Euro 94.5 million, +13.6% compared to the first nine months of 2018
• Consolidated EBITDA amounting to Euro 36.2 million, +23.6% compared to the same period of 2018
• Group Net Profit of Euro 17.9 million, +22.5% compared to 14.6 million in the first nine months 2018

Bologna, 11 November 2019 – The Board of Directors of Aeroporto Guglielmo Marconi di Bologna S.p.A., chaired by Enrico Postacchini, has approved today the Group results for Q3 2019.

"The figures for the first nine months of 2019 confirm the sustained growth trend that has characterized the Bologna Airport for years, supported by a strong balance between all the components of the airport business - commented Nazareno Ventola, Chief Executive Officer and Managing Director of Guglielmo Marconi Airport of Bologna - We are working together with local and national authorities, in order to generate further development of the airport, as envisaged by our Masterplan, based on environmental sustainability and the enhancement of the whole territory."

Operating performance

Consolidated revenues at September 30, 2019 amounted to Euro 94.5 million, increasing sharply (+ 13.6%) compared to Euro 83.2 million of 2018, thanks to the positive trend registered by both Aeronautical and Non-Aeronautical revenues.

More in detail, Aeronautical revenues amounted to Euro 48.9 million, with a growth of 14.8% due to traffic increase and tariff update: specifically, revenue from passengers increased by 14,2%, while revenues from carriers registered a + 15.4%.

Non-Aeronautical revenues, on the other hand, amounted to Euro 33.5 million, up 8.8% thanks to the positive trend of all the components of this category, in particular retail and advertising (+ 9.3%), parking (+ 5.4%), real estate (+ 2.2%) and passenger services (+ 12.3%).

The operating costs in the first nine months of 2019 amounted to Euro 58.2 million, with an increase of 8.1% compared to Euro 53.9 million in 2018. This increase is in particular linked to costs for construction services (+ 25.8%) due to higher investments and to personnel costs (+ 8.9%) mainly due to the growth in the workforce for traffic-related activities.

Excluding the construction services category, in the first nine months of 2019 revenues registered an increase of 12.1% and costs of 4.8%.

Profitability

Consolidated EBITDA in the first nine months of 2019 amounted to Euro 36.2 million, up 23.6% compared to Euro 29.3 million in Q3 2018. Consolidated EBIT instead amounted to Euro 26 million, with an increase of 27.7% compared to Euro 20.4 million in 2018.

The growth in passengers' traffic and the positive dynamics that it generated on all the main components of the business, combined with a contained trend in costs contributed to a consolidated net result which in the first nine months of the year amounted to Euro 17.9 million, entirely attributable to the Group, up 22.5% compared to Euro 14.6 million in Q3 2018.

Traffic

In the first nine months of 2019, Aeroporto di Bologna reported a growth in terms of passengers' traffic of 11.4%, thanks to the introduction of new destinations and the strengthening of some existing routes, registering a total of 7,175,435 passengers, inclusive of transit and General Aviation, compared to 6,441,857 passengers in 2018. Movements also increased (58,844, +9.2%) and tonnage (3,864,679, + 9.5%). Excluding the impact generated by the closing of the runway in September 2018, when a part of the runway was recostructed for a total time of four days and 6 hours, it is estimated that the increase in passengers between January and September would have been approximately 9%.

The average load factor of the airlines remains substantially stable, amounting to 81.9% compared to 81.8% in the first nine months of 2018, thanks to an increase in passengers in line with the increase in seats offered.

The international vocation of Aeroporto di Bologna is confirmed, with a share of passengers on international flights reaching 79.1% in the first nine months of 2019, compared to 76.7% in the same period of 2018.

Both the legacy carriers' and low-cost traffic contributed to the passenger growth. In detail, legacy carriers' traffic grew by 6.1% thanks to the introduction of new seasonal flights to Philadelphia, Helsinki, Nis and Tirana and to the increase in frequencies for some routes, including Frankfurt, Amsterdam, Istanbul and Tblisi by some of the main international airlines.

Low-cost traffic registered an increase of 15.5% thanks to the strengthening of operations by Ryanair, Wizzair, Lauda Motion, Eurowings and Vueling.

Regarding freight traffic, at September 30, 2019 cargo traffic amounted to more than 36.3 million kg, registering a decrease of 6.4% compared to the figure of 2018, due to a general slowdown in cargo segment generated by the commercial tensions at international level.

Balance Sheet and Investments

The Group's net financial position as at September 30, 2019 is positive for Euro 3.8 million compared to the net financial position positive for 8 million at December 31, 2018 and Euro 16.7 million at September 30, 2018.

At September 30, 2019, consolidated shareholders' equity of the Group amounted to Euro 175,2 million compared to 173.7 million at December 31, 2018. The change was affected by the distribution of dividends for the 2018 result amounting Euro 16.2 million, approved by the Shareholders' Meeting of the Parent Company on 29 April 2019.

The total amount of investments at the end of the first nine months of 2019 amounted to Euro 10.5 million, for both the execution of the airport Masterplan and airport operations, besides 1.4 million for cyclical renewal and maintenance of airport infrastructures (Renewal Fund). Among the main projects underway are the new de-icing pitch, the Cargo Building, the new perimeter road system and the raising of the Express Car Park.

Significant events after period-end

In October 2019 the airport registered 807,552 passengers, with an increase of 8.1% compared to the same month of 2018. The air movements also increased (6,232, + 3.8%), while the goods transported by air decreased by 14.8% compared to the previous year, for a total of 3,385 tons.

In the first ten months of 2019 the overall passengers of Aeroporto di Bologna were 7,976,208, up 11% compared to 2018. The movements increased by 8.7% (61,716), while the goods decreased slightly (31,709 tons, -5.6%) compared to previous year.

Relating to the starting of new flights and frequency increase:

• Ryanair will start new connections to:
  • o Santander with two weekly flights from October 28;
  • o Katowice with two weekly flights from October 29;
  • o Tel Aviv with two weekly flights from October 29;
  • o Fuerteventura with one weekly flight from November 2;
  • o Kuitasi with two weekly flights from November 9
• Wizz Air will start a new connection to Kutaisi with two weekly flights from November 23.

Lastly, Ryanair flights to Podgorica and Bordeaux (with two weekly frequencies) and Crotone and Marseille (with three weekly frequencies) will become annual flights starting in Winter 2019/2020.

The Group Q3 2019 Results Report is available in the Investor Relations section of the Company's website www.bologna-airport.it and at the authorized storage mechanism ().

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Attached: Statement of Consolidated Financial Position, Consolidated Income Statement, Consolidated Net Financial Position and Cash Flow Statement.

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The Executive Officer in charge of the preparation of the corporate accounting documents, Patrizia Muffato, declares in accordance with paragraph 2, Article 154-bis of the Consolidated Finance Act that the accounting information in the present press release corresponds to the underlying accounting documents, records and entries.

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Bologna Guglielmo Marconi Airport, classified as a "strategic airport" in the centre-north area of the National Airports Plan prepared by the Ministry of Infrastructure and Transport, in 2018 was the eighth biggest Italian airport by passenger numbers, with 8.5 million passengers, of which 76,8% on international flights (Source: Assaeroporti). Located in the heart of the Emilian food valley and the automotive and packaging industrial districts, the airport has a catchment area of about 11 million inhabitants and around 47,000 companies, with a strong propensity to exports and internationalisation and with commercial expansion policies to Eastern Europe and Asia.

In 2018 114 destinations were served from Bologna: the presence at the airport of some of the largest airlines in Europe along with some of the leading low-cost carriers and the close link with European continental hubs make Bologna Italy's forth airport in for global connectivity (Source: ICCSAI - Fact Book 2017) and the first in Europe in terms of growth of connectivity in the decade from 2004 to 2014 (Source: ACI Europe Airport Connectivity Report 2004-2014).

As for airport infrastructure, the airport has among its strategic objectives in the next few years an important development plan that mainly concerns the expansion of the terminal, particularly in the parts of security checks and gate area. The company's aim is to make Bologna Airport one of the most modern and functional in Italy, an important gateway to the city and region.

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For further informations: www.bologna-airport.it

Investor Relations:

Aeroporto G. Marconi di Bologna Spa Patrizia Muffato Chief Financial Officer and Investor Relations Manager investor.relations@bologna-airport.it Tel: 051/6479960

Media:

Aeroporto G. Marconi di Bologna Spa Barabino&Partners Anna Rita Benassi Massimiliano Parboni Responsabile Comunicazione e Ufficio Stampa m.parboni@barabino.it ufficiostampa@bologna-airport.it Tel: 335/8304078 Tel: 051/6479961 Fabio Bartolo

f.bartolo@barabino.it Tel.: 329/8850128

Statement of Consolidated Financial Position - Assets

In thousands of Euros	at 30.09.2019	at 31.12.2018
Concession rights	172,964	166,292
Other intangible assets	2,079	2,059
Intangible assets	175,043	168,351
Land, real estate, plant and equipment	14,398	15,135
Investment property	4,732	4,732
Tangible assets	19,130	19,867
Shareholdings	43	43
Other non-current assets	12,215	16,205
Deferred tax assets	6,120	6,108
Other non-current assets	1,443	1,464
Other non-current assets	19,821	23,820
NON-CURRENT ASSETS	213,994	212,038
Inventories	534	594
Trade receivables	18,573	14,272
Other current assets	6,620	4,661
Current financial assets	0	13,449
Cash and cash equivalents	24,614	15,762
CURRENT ASSETS	50,341	48,738
TOTAL ASSETS	264,335	260,776

Statement of Consolidated Financial Position – Liabilities

In thousands of Euros	at 30.09.2019	at 31.12.2018
Share capital	90,314	90,314
Reserves	66,941	65,469
Year-end results	17,902	17,927
GROUP SHAREHOLDERS' EQUITY	175,157	173,710
MINORITY INTERESTS	0	0
TOTAL SHAREHOLDERS' EQUITY	175,157	173,710
TFR [Severance] and other personnel provisions	4,431	4,205
Deferred tax liabilities	2,501	2,456
Airport infrastructure provision	9,299	10,332
Provisions for risks and expenses	1,146	1,028
Current financial liabilities	14,551	14,690
Other non-current liabilities	193	168
NON-CURRENT LIABILITIES	32,121	32,879
Trade payables	13,834	19,011
Other liabilities	32,389	26,367
Airport infrastructure provision	3,805	1,757
Provisions for risks and charges	756	526
Current financial liabilities	6,273	6,526
CURRENT LIABILITIES	57,057	54,187
TOTAL LIABILITIES	89,178	87,066
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	264,335	260,776

Consolidated Income Statement

In thousands of Euros
	At 30.09.2019	At 30.09.2018
Revenues from aeronautical services	48,890	42,596
Revenues from non-aeronautical services	33,502	30,795
Revenues from construction services	11,315	8,993
Other operating revenues and proceeds	763	799
Revenues	94,470	83,183
Consumables and goods	(1,590)	(1,532)
Costs for services	(14,992)	(15,084)
Costs for construction services	(10,776)	(8,565)
Leases, rentals and other costs	(6,499)	(6,072)
Other operating expenses	(2,426)	(2,451)
Personnel costs	(21,958)	(20,172)
Costs	(58,241)	(53,876)
Amortisation of concession rights	(4,643)	(4,320)
Amortisation of other intangible assets	(904)	(704)
Amortisation of tangible assets	(2,060)	(1,624)
Depreciation and impairment	(7,607)	(6,648)
Provision for doubtful accounts	(516)	(57)
	(1,795)	(2,000)
Airport infrastructure provision	(306)	(233)
Provisions for other risks and charges Provisions for risks and charges	(2,617)	(2,290)
	(68,465)	(62,814)
Total Costs	26,005	20,369
Operating results	88	576
Financial income	(1,007)	(453)
Financial expenses
Result before taxes	25,086	20,492
Taxes for the period	(7,184)	(5,882)
Profit (losses) for the period	17,902	14,610
Minority profits (losses)	0	156
Group profits (losses)	17,902	14,454
Profits (losses) basic per share (Euro)	0.49	0.40
Profits (losses) diluted per share (Euro)	0.49	0.40

Consolidated Net Financial Position

	In thousands of Euros	at 30.09.2019	at 31.12.2018	at 30.09.2018	Variation 30.09.2019 31.12.2018	Variation 30.09.2019 30.09.2018
A	Cash	27	27	23	0	4
B	Cash equivalents	24,587	15,735	31,527	8,852	(6,940)
C	Securities held for trading	0	0	0	0	0
D	Liquidity (A)+(B)+(C)	24,614	15,762	31,550	8,852	(6,936)
E	Current financial receivables	0	13,449	9,604	(13,449)	(9,604)
F	Current bank debt	(126)	(43)	(170)	(83)	44
G	Current portion of non-current debt	(3,058)	(4,433)	(5,808)	1,375	2,750
H	Other current financial debt	(3,089)	(2,050)	(2,400)	(1,039)	(689)
I	Current financial debt (F)+(G)+(H)	(6,273)	(6,526)	(8,378)	253	2,105
J	Net current financial debt (I)-(E)-(D)	18,341	22,685	32,776	(4,344)	(14,435)
K	Non-current bank debt	(13,045)	(14,690)	(16,092)	1,645	3,047
L	Bonds issued	0	0	0	0	0
M	Other non-current liabilities	(1,506)	0	0	(1,506)	(1,506)
N	Non-current financial debt (K)+(L)+(M)	(14,551)	(14,690)	(16,092)	139	1,541
O	Net financial position (J)+(N)	3,790	7,995	16,684	(4,205)	(12,894)

Cash Flow Statement

In thousands of Euros	at 30.09.2019	at 30.09.2018	Variation
Cash flow generated /( absorbed) from operating activities before changes in working capital	35,764	28,967	6,797
Cash flow generated / (absorbed) from net operating activities	21,606	22,456	(850)
Cash flow generated / (absorbed) from investing activities	6,890	10,085	(3,195)
Cash flow generated / (absorbed) from financing activities	(19,644)	(17,200)	(2,444)
Final cash change	8,852	15,341	(6,489)
Liquid assets at beginning of period	15,762	16,209	(447)
Final cash change	8,852	15,341	(6,489)
Liquid assets at end of period	24,614	31,550	(6,936)