Fnm — Investor Presentation 2021

Nov 12, 2021

FNM Group 9M 2021 RESULTS

November 12, 2021

FNM Group| Overview

1 - Companies operating in the freight mobility sector included respectively in the Railway infrastructure management and in Ro.S.Co. & Services segments. Malpensa Intermodale and Malpensa Distripark are in the start-up phase.

2 - Companies operating in the road passenger transport but considered in the Ro.S.Co. Segment for the purposes of preparing the financial statements

3 – Since February 26, 2021 MISE is fully consolidated into FNM's accounts

4 – Since February 2021 La Linea holds 100% stake in Conam, since then the company is fully consolidated into FNM's accounts

Overview

Economic and financial results

• Financial highlights
• Mobility demand in the period
• 9M 2021 consolidated results

Outlook

Appendix

4

FNM Group| 9M 2021 Highlights – REPORTED¹

(in mln € )

1. For the purposes of P&L, in 2021 MISE is consolidated since February 26, comparing with FNM's 2020 actual results. For NFP, data at September 30, 2021 compares with data at December 31, 2020 which does not include the effects of the acquisition of the control stake in MISE

2. Adjusted EBITDA: excluding extraordinary gains and losses

3. Adjusted Net Profit (Loss): Net Profit (Loss) before recognition of the result of companies consolidated using the equity method

4. Adjusted Net Financial Position: excluding the impacts of the timing of collections of the contributions on financial investments for the renewal of the railway rolling stock and of the related payments made to suppliers, recognized in accordance with IFRIC 12

5

FNM Group| 9M 2021 Highlights – PRO FORMA¹

(in mln € )

1. For the purposes of P&L, in 2021 MISE is consolidated starting from January 1, comparing with pro-forma 2020 results calculated as if MISE was consolidated starting from January 1, 2020. For NFP, data at September 30, 2021 compares with data at December 31, 2020 which does not include the effects of the acquisition of control stake of MISE

2. Adjusted EBITDA: excluding extraordinary gains and losses

3. Adjusted Net Profit (Loss): Net Profit (Loss) before recognition of the result of companies consolidated using the equity method

4. Adjusted Net Financial Position: excluding the impacts of the timing of collections of the contributions on financial investments for the renewal of the railway rolling stock and of the related payments made to suppliers, recognized in accordance with IFRIC 12

FNM Group | Mobility demand in the period

Demand recovery in 9M 2021, but still below pre-pandemic levels

FNM Group | Mobility demand in the period – by quarter

9M 2021 demand reflects three full months of travel restrictions¹ in IQ, followed by recovery in 2Q and 3Q

Trenord (mln passengers) 58 53 40 43 ^{11 22 21 28 30} IQ 2Q 3Q 2019 2020 2021 -46% -30% +153% -79% +39% -50%

1 – The emergency state due to COVID-19 was declared on February 22, 2020, as a result IQ2020 benefited from two months of regular mobility demand

FNM Group | Revenues and Adjusted EBITDA by segment – PRO FORMA¹

EBITDA growth underpinned by mobility demand recovery and Government compensation measures supporting LPT

(in mln € )

Il gruppo in breve REVENUES	PRO FORMA 9M 2020	PRO FORMA 9M 2021	D	D %
Railway	94	95	1	1
infrastructure	0	8	8	9%
management	,	,	,	,
& Service Ro S Co	60 1 ,	57 4 ,	(2 7) ,	5% -4 ,
Road	67	87	20	29
mobility	9	9	0	5%
passenger	,	,	,	,
infrastructure	151	179	27	18
Motorway	6	0	4	1%
management	,	,	,	,
Intercompany	(16	(23	(7	43
	1)	1)	0)	5%
	,	,	,	,
Total	357	397	39	0%
	5	0	5	11
	,	,	,	,
EBITDA2 ADJUSTED	PRO FORMA 9M 2020	PRO FORMA 9M 2021	D	D %
Railway	9	6	(2	-28
infrastructure	4	7	7)	7%
management	,	,	,	,
& Service Ro S Co	39 8 ,	35 7 ,	(4 1) ,	-10 3% ,

Road passenger mobility 9,4 10,1 0,7 7,4%

Motorway infrastructure management 62,9 83,4 20,5 32,6%

Total 121,5 135,9 14,4 11,9%

1 - In 2021 MISE is consolidated starting from January 1, comparing with pro-forma 2020 results calculated as if MISE was consolidated starting from January 1, 2020.

2 - Adjusted EBITDA: excluding extraordinary gains and losses

FNM Group | Revenues and Adj. EBITDA by segment – PRO FORMA

(in mln € )

Adjusted EBITDA¹

• Higher costs for:
  • Infrastructure and maintenance design activities
  • real estate management (including sanification and extraordinary cleaning)
  • IT systems upgrade
• Higher provisions for rolling stock fleet maintenance
• Slightly increasing cost of personnel
• Lower maintenance costs due to phasing

Ro.S.Co. & Service

• Lower revenues from rolling stock leasing due to renewal of leasing contract on TAF trains, partially compensated by new leasing contracts (DE 520, E494 and Effishunter locomotives; TILO trains)
• Higher proceeds from service contracts and IT services provided to group companies
• Lower rents on commercial premises due to Covid-19
• Positive one off proceeds from the sale of a building in 2021 (0.3 mln euros)

• Effect of lower revenues
• Higher operating costs

FNM Group | Revenues and Adj. EBITDA by segment – PRO FORMA

(in mln € )

Motorway infrastructure management

• Higher tolling revenues due to traffic recovery
• Higher revenues from service areas concessions

• Higher traffic supporting revenues
• Higher operating costs: concession fees, collection fees and electricity consumption
• Higher labour cost
• Lower maintenance costs due to phasing

1 – Adjusted EBITDA: excluding extraordinary gains and losses

2 – Rilancio Decree, Agosto Decree, Ristori bis Decree and Sostegni Decree

FNM Group| From EBITDA to Net Result – PRO FORMA

Bottom line impacted by COVID 19 effect on Trenord results and non recurring fees on bridge loan

FNM Group| Consolidated Cash Flow

9M 2021 cash flow impacted by the acquisition of control stake in MISE

FNM Group| Net Financial Position evolution

MISE acquisition: Increase in NFP in line with expectations and within rating agencies requirements

FNM Group | Gross debt composition as at 30 September 2021

LIQUIDITY HEADROOM 12.11.2021: Uncommitted lines 140 mln euros

1- Excluding the non-current portion of debt for funded investments for 12.6 million euros

2 – Only on bank debt and bond

FNM Group | Expected gross debt¹ composition evolution

650mln euros bond issue in the context of an EMTN programme of up to 1 bln euros

• 13 October 2021: successful placement of the senior unsecured, nonconvertible fixed rate bond for 650 million euro with a maturity of 5 years. Inaugural Bond issued in the context of FNM's EMTN Programme (BBB- from Fitch and Baa3 from Moody's) for a total maximum amount of up to 1 billion euro.
• Issue price of 99.824%; fixed annual coupon of 0.75%; annual yield of 0.786%, corresponding to a spread of 88 basis points with respect to the reference midswap rate
• Rating of the notes: BBB- by Fitch and Baa3 by Moody's, both with stable outlook
• Use of proceeds: full upfront payment of Bridge Loan related to the MISE acquisition and to maintain the adequate amount of liquidity to cover the operating needs and the investments.
• Thanks to the EMTN Programme FNM will:
  • increase debt average life, in consistence with total assets structure
  • optimize financial costs
  • diversify financial sources and investors, opening the opportunity to make recourse to sustainable finance instruments, in line with FNM targets

1- Gross debt 1004 mln euros, excluding the non-current portion of debt for funded investments for 12.6 million euros 2 – Only on bank debt and bond

Overview

Appendix

FNM Group | Covid-19 Impacts FY2021 outlook

FNM Group| FY 2021 outlook

Guidance has further improved

TARGETS FY 2021 VS. 2020

1. guidance of FNM + Mise consolidated since February 26, 2021 versus FNM 2020 actual results

2. guidance on FNM +Mise on a like for like basis in FY2020 and FY2021

FNM Group| Shareholders and share performance

Relative performance Jan. 1, 2020 to date, vs reference indexes

Share price November 10, 2021: 0.69 euro

Share capital profile

Market capitalization as at November 10, 2021	300.1 mln euros
N. Of shares	434.9 mln
Average traded volumes (last 30 days)	705,647
2021 YTD change	+21.1%

FNM Group| Consolidated Profit & Loss – REPORTED¹

(€M)	9M 2020	9M 2021	Var	Var %
from sales and Revenues services	191 0 ,	347 4 ,	Il gruppo in breve 156 4 ,	81 9% ,
Other and income revenues	14 9 ,	19 9 ,	5 0 ,	33 6% ,
Total and other income revenues	205 9 ,	367 3 ,	161 4 ,	78 4% ,
Operating costs	(65 8) ,	(131 0) ,	(65 2) ,	n m
Personnel costs	(81 5) ,	(112 2) ,	(30 7) ,	7% 37 ,
ADJ EBITDA	58 6 ,	124 1 ,	65 5 ,	nm
Non-ordinary (expense) income	(0 7) ,	0 4 ,	1 1 ,	n m
EBITDA	57 9 ,	124 5 ,	66 6 ,	n m
and Depreciation amortisation	(29 6) ,	(55 6) ,	(26 0) ,	87 8% ,
EBIT	28 3 ,	68 9 ,	40 6 ,	nm
(expense) financial Net income	0 3 ,	(16 4) ,	(16 7) ,	n m
of which divestments gains on	1 1 ,	0 0 ,	(1 1) ,	n m
EARNINGS BEFORE TAXES	28 6 ,	52 5 ,	23 9 ,	83 6% ,
Income taxes	(5 9) ,	(14 3) ,	(8 4) ,	n m
(LOSS) ADJUSTED NET PROFIT	22 7 ,	38 2 ,	15 5 ,	3% 68 ,
(Loss) Profit of consolidated companies equity at	(15 6) ,	(12 9) ,	2 7 ,	17 3% ,
Profit (Loss) Net	7 1 ,	25 3 ,	18 2 ,	nm
Profit (Loss) Minority interest in Net	0 9 ,	3 0 ,	2 1 ,	n m
Profit (Loss) Group Net	6 2 ,	22 3 ,	16 1 ,	nm

FNM Group | Revenues and Adjusted EBITDA by segment – REPORTED¹

(in mln € )

Il gruppo in breve	9M	9M	D	D
REVENUES	2020	2021		%
Railway	94	95	1	9%
infrastructure	0	8	8	1
management	,	,	,	,
& Service Ro S Co	60 1 ,	57 4 ,	(2 7) ,	-4 5% ,
mobility	67	87	20	29
Road	9	9	0	5%
passenger	,	,	,	,
infrastructure	0	149	149	nm
Motorway	0	3	3
management	,	,	,
Intercompany	(16	(23	(7	43
	1)	1)	0)	5%
	,	,	,	,
Total	205	367	161	78
	9	3	4	4%
	,	,	,	,

EBITDA2	9M	9M	D	D
ADJUSTED	2020	2021		%
Railway	9	6	(2	-28
infrastructure	4	7	7)	7%
management	,	,	,	,
Ro S Co & Service	39 8 ,	35 7 ,	(4 1) ,	-10 3% ,
Road	9	10	0	7
mobility	4	1	7	4%
passenger	,	,	,	,
infrastructure	0	71	71	nm
Motorway	0	6	6
management	,	,	,
Total	58	124	65	111
	6	1	5	8%
	,	,	,	,

1 - In 2021 MISE is consolidated since February 26, comparing with FNM's 2020 actual results.

2 - Adjusted EBITDA: excluding extraordinary gains and losses

FNM Group| From EBITDA to Net Result – REPORTED¹

1 . In 2021 MISE is consolidated since February 26, comparing with FNM's 2020 actual results.

* Adjusted Net Result: Net Result before profit (loss) of companies consolidated at equity

FNM Group| Consolidated Profit & Loss – PRO FORMA¹

	PRO FORMA	PRO FORMA
(€M)	9M 2020	9M 2021	Var Il gruppo in breve	% Var
from sales and Revenues services	333 3 ,	375 8 ,	42 5 ,	12 8% ,
Other and income revenues	24 2 ,	21 2 ,	(3 0) ,	-12 4% ,
Total and other income revenues	357 5 ,	397 0 ,	39 5 ,	11 0% ,
Operating costs	(124 2) ,	(141 4) ,	(17 2) ,	13 8% ,
Personnel costs	(111 8) ,	(119 7) ,	(7 9) ,	1% 7 ,
ADJ EBITDA	121 5 ,	135 9 ,	14 4 ,	9% 11 ,
(expense) Non-ordinary income	(0 7) ,	0 4 ,	1 1 ,	n m
EBITDA	120 8 ,	136 3 ,	15 5 ,	8% 12 ,
Depreciation and amortisation	(59 6) ,	(62 1) ,	(2 5) ,	2% 4 ,
EBIT	61 2 ,	2 74 ,	13 0 ,	21 2% ,
financial (expense) income Net	(2 4) ,	(17 0) ,	(14 6) ,	n m
of which divestments gains on	1 1 ,	0 0 ,	(1 1) ,	n m
EARNINGS BEFORE TAXES	58 8 ,	57 2 ,	(1 6) ,	-2 7% ,
Income taxes	(14 5) ,	(14 8) ,	(0 3) ,	2 1% ,
(LOSS) ADJUSTED NET PROFIT	44 3 ,	42 4 ,	(1 9) ,	-4 3% ,
Profit (Loss) of consolidated companies equity at	(18 4) ,	(13 7) ,	4 7 ,	25 5% ,
Profit (Loss) Net	25 9 ,	28 7 ,	2 8 ,	nm
Profit (Loss) Minority interest in Net	1 6 ,	3 2 ,	1 6 ,	n m
(Loss) Profit Group Net	24 3 ,	25 5 ,	1 2 ,	4 9% ,

FNM Group| Consolidated Profit & Loss – segment details

Railway infrastructure management
(€M)	9M 2020	9M 2021	Var.	Var.%
Public contracts and grants Rolling stock leasing Other revenues	75,7 6,6 11,7	75,3 8,5 12,0	(0,4) 1,9 0,3	-0,5% 28,8% 2,6%
Total revenues	94,0	95,8	1,8	1,9%
Adj. EBITDA Adj. EBITDA/Revenues % EBIT	9,4 10,0% 7,7	6,7 7,0% 7,1	(2,7) (0,6)	-28,7% -7,8%

Road passenger mobility

(€M)	9M 2020	9M 2021	Var.	Var.%
Public contracts and grants	38,2	43,5	5,3	13,9%
Transport services	24,9	39,6	14,7	59,0%
Other revenues	4,8	4,8	0,0	0,0%
Total revenues	67,9	87,9	20,0	29,5%
Adj. EBITDA	9,4	10,1	0,7	7,4%
Adj. EBITDA/Revenues %	13,8%	11,5%
EBIT	0,7	3,4	2,7	nm

(€M)	9M 2020	9M 2021	Var	% Var
Rolling stock leasing Other revenues	42 4 , 17 7	39 0 , 18 4	(3 4) , 0 7	-8 0% , 4 0%
Total revenues	, 60 1 ,	, 57 4 ,	, (2 7) ,	, 5% -4 ,
Adj EBITDA	39 8 ,	35 7 ,	(4 1) ,	-10 3% ,
Adj EBITDA/Revenues %	66 2% ,	62 2% ,
EBIT	19 9 ,	12 3 ,	(7 6) ,	2% -38 ,

Motorway infrastructure management

PRO FORMAPRO FORMA
(€M)	9M 2020	9M 2021	Var	Var %
Toll revenues	142 3 ,	165 9 ,	23 6 ,	16 6% ,
Other revenues	9 3 ,	13 1 ,	3 8 ,	40 9% ,
Total revenues	151 6 ,	179 0 ,	27 4 ,	18 1% ,
Adj EBITDA	62 9 ,	83 4 ,	20 5 ,	32 6% ,
EBITDA/Revenues Adj %	41 5% ,	46 6% ,
EBIT	32 9 ,	67 8 ,	34 9 ,	nm

FNM Group| Profit (loss) of companies consolidated at equity

Negative effects of lower mobility demand due to COVID-19 on Trenord and APL

	Il gruppo in breve PRO FORMA PRO FORMA
(€ '000)	9M 2020	9M 2021	Var
Srl1 Trenord	(18 735)	(12 388)	6 347
Autostrada Pedemontana Lombarda	(2 842)	(2 719)	123
. 2 Tangenziali MilanoS Esterne .p.A	0	(1 503)	(1 503)
Spa3 Nord Energia	1 724	1 213	(511)
Italia Srl DB Cargo	1 067	1 444	377
Srl4 Omnibus Partecipazioni	185	59	(126)
NordCom Spa	35	304	269
Busforfun Srl Com	0	(110)	(110)
Srl Conam	30	0	(30)
Sems	81	0	(81)
(Loss) Profit of companies consolidated equity at	(18 455)	(13 700)	4 755

1 - including the profit (loss) of TILO SA

• 2 including the profit (loss) of Tangenziale Esterna S.p.A.
• 3 including the profit (loss) of CMC MeSta SA
• 4 including the profit (loss) of ASF Autolinee Srl

FNM Group| Consolidated Balance Sheet¹

(€M)	'21 Sept 30 ,	31 2020 Dec ,	Var
Inventories	10 0 ,	8 7 ,	1 3 ,
Trade receivables	142 1 ,	82 6 ,	59 5 ,
Other receivables current	2 114 ,	99 0 ,	2 15 ,
financial receivables Current	119 8 ,	41 6 ,	78 2 ,
Trade payables	(316 1) ,	(177 5) ,	(138 6) ,
Other payables and provisions current current	(125 5) ,	(70 7) ,	(54 8) ,
Working Capital Net	(55 5) ,	(16 3) ,	(39 2) ,
Fixed assets	801 6 ,	468 3 ,	333 3 ,
Equity interests	158 8 ,	168 0 ,	(9 2) ,
receivables Non-current	211 0 ,	24 2 ,	186 8 ,
liabilities Non-current	(27 8) ,	(24 4) ,	(3 4) ,
Provisions	(122 8) ,	(60 9) ,	(61 9) ,
and liabilities held for sale Assets	0 0 ,	0 0 ,	0 0 ,
NET INVESTED CAPITAL	965 3 ,	558 9 ,	406 4 ,
Equity	230 9 ,	477 1 ,	(246 2) ,
Adjusted Financial Net Position	776 5 ,	43 8 ,	732 7 ,
Financial for funded (cash) Net Position investments	(42 1) ,	38 0 ,	(80 1) ,
Financial Net Position	734 4 ,	81 8 ,	652 6 ,
TOTAL SOURCES	965 3 ,	558 9 ,	406 4 ,

FNM Group| Consolidated Balance Sheet – NFP composition¹

(€M)	'21 Sept 30 ,	31 2020 Dec ,	Var
Cash and bank deposits	(240 3) ,	(126 1) ,	(114 2) ,
financial debt Current	781 6 ,	101 2 ,	680 4 ,
(Debt/ -Cash) Financial Position Current Net	541 3 ,	(24 9) ,	566 2 ,
financial debt Non-current	235 2 ,	68 7 ,	166 5 ,
Adjusted Financial Position Net	776 5 ,	43 8 ,	732 7 ,
(Debt/ -Cash) Financial for funded Net Position investments	(42 1) ,	38 0 ,	(80 1) ,
Financial Position Net	734 4 ,	81 8 ,	652 6 ,

Il gruppo in breve

Contacts

Valeria Minazzi Investor Relations Director Fixed line: +39 02 8511 4302 valeria.Minazzi@fnmgroup.it investor.relations@fnmgroup.it