Fnm — Investor Presentation 2022

Nov 11, 2022

FNM Group 9M 2022 RESULTS

November 11th 2022

FNM Group| Overview

Overview

Economic & Financial Results

• Financial highlights
• Mobility demand in the period
• 9M 2022 consolidated results

FY 2022 Outlook

Appendix

FNM Group| 9M 2022 Highlights

1 – For the purposes of P&L, in 2021 MISE is consolidated since February 26th. 2 – For the purposes of P&L, in 2021 MISE is consolidated starting from January 1st. 3 – Adjusted EBITDA: excluding extraordinary gains and losses

4 – Adjusted Net Result: Net Profit (Loss) before recognition of the result of companies consolidated using the equity method

5 – Adjusted Net Financial Position: NFP calculated excluding cash and payables related to financial investments made in accordance with Regione Lombardia's "2017-2032 Rolling Stock purchase programme", with the aim of sterilizing the timing effects of contributions collection and payments made to suppliers, recognized in accordance with IFRIC 12

FNM Group | Mobility demand in the period

Rebound of demand across all segments but still below pre-pandemic levels, heavy vehicle traffic volumes above 2019 levels

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

EBITDA growth underpinned by mobility demand rebound, despite the increase in energy costs and inflation

(€ mln) REVENUES (€ mln)	9M21 PF	9M22	∆€	∆%
Ro.S.Co. & Services	57.4	58.5	1.1	+1.9%
Railway infrastructure	95.8	107.7	11.9	+12.4%
Road passenger mobility	87.9	97.5	9.6	+10.9%
Motorways	179.0	209.3	30.3	+16.9%
Intercompany	(23.1)	(25.8)	(2.7)	n.m.
Total	397.0	447.2	50.2	+12.6%
2 Adj. EBITDA (€ mln)	9M21 PF	9M22	∆€	∆%
Ro.S.Co. & Services	35.7	32.2	(3.5)	-9.8%
Railway infrastructure	6.9	14.6	7.7	n.m.
Road passenger mobility	10.1	7.2	(2.9)	-28.7%
Motorways	83.2	101.7	18.5	+22.2%
Total	135.9	155.7	19.8	+14.6%

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

• Revenues from rolling stock leasing in line YoY thanks to higher revenues from new contracts (Effishunter/DE520 locomotives and TILO trains leased to Trenord) which compensate the lower revenues from the renewal of leasing contracts on TAF and CSA trains;
• Higher proceeds from service contracts, costs' recoveries and IT services provided to Group companies
• Higher personnel costs mostly related to headcount increase (+9 FTE)
• Higher operating expenses (IT costs, insurance, membership fees, etc.), also related to the development of Fili and H2IseO projects

6.9

7.2%

9M 2021 9M 2022

Adj. EBITDA Margin

x2

13.5%

Railway infrastructure

• Higher service revenues from Programme Agreement (mainly design activities linked to the Gallarate-Malpensa T2 rail link and procurement of rolling stock), partially offset by the efficiency mechanism provided in the Service Contract
• Higher leasing revenues on the rolling stock given in use to Trenord and managed by Ferrovienord in line with expansion of the fleet
• Increase of income from commercial activities, rents and sale of inventory residues
• Less than proportional increase in costs for infrastructure and maintenance design activities
• Higher provisions for rolling stock fleet maintenance in line with revenues
• Increase in utilities , insurance and IT systems expenses
• Lower personnel expenses due to the recovery of statutory sick pay costs
• Negative one-offs for €1.1mln²in 9M21

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

• Higher revenues from transportation services: more passengers transported, increased train replacements, outsourced additional transport and car sharing services
• Lower proceeds from public contracts and grants, mainly due lower Government compensations only partially compensated by higher €/km recognized by Regione Veneto
• Government compensations decrease YOY (€7.2mln vs €9.2mln in 9M21) o/w contributions for lost revenues (€2.7mln vs €5.5mln) and compensation for additional services (€4.5mln vs €3.7mln)
• €0.7mln tax credit on energy consumption and increased recovery of excise taxes on diesel fuel for €0.9mln

• Higher costs outpace growth in revenue mainly due to: energy costs (combined effect of higher bus-km and fuel costs), subcontracting fees for additional transport services and personnel expenses

• Higher tolling revenues due to the combined effect of traffic recovery and tariffs increase (+2.62% from January 1st 2022)

• Higher revenues from service areas concessions thanks to traffic increase and renewal of some contracts at more favourable economic conditions for MISE

• Higher operating costs: concession fees, collection fees and electricity consumption

• Higher maintenance costs and net provisions to the renewal fund for planned maintenance and repairs of the motorway infrastructure, reflecting also higher future cots linked to inflation

8

• Higher labour costs mainly related to redundancy incentives charges

FNM Group | Trenord: 9M 2022 Highlights

Positive effect of traffic recovery offset by lower Government compensations for lost revenues

€ mln	9M21	9M22	∆€	∆%
Revenues	530.2	577.1	46.9	+8.8%
Ticketing revenues	124.3	219.9	95.6	+76.9%
Revenues from Service Agreement	305.2	326.1	20.9	+6.8%
Other revenues	100.7	31.1	(69.6)	-69.1%
EBITDA	77.1	70.8	(6.3)	-8.2%
EBIT	(49.0)	(57.5)	(8.5)	n.m
Net Result	(24.8)	(51.0)	(26.2)	n.m.

• Increase in revenues thanks to:
• higher ticketing revenues mainly as a result of recovery in passenger volume
• higher revenues from service agreement following the increase in recognized costs,
• decrease in other revenues due to lower Government compensation measures (nil in 9M22 vs €72.7 mln in 9M21)
• Decrease in EBITDA due to higher personnel costs (+208 FTE) and higher costs for services, utilities, and energy traction which more than offset higher revenues.
• EBIT still negative following also the slight increase in depreciation charges
• Higher Net Loss YoY in line with operating performance and lower deferred tax assets accrued in the period

FNM Group | APL: 9M 2022 Highlights

Improved operating performance thanks to full recovery of traffic

€ mln	9M21	9M22	∆€	∆%
Revenues	27.9	35.4	7.5	+26.9%
Toll revenues	25.3	31.8	6.5	+25.7%
Other revenues	2.6	3.6	1.0	+38.5%
EBITDA	11.2	16.9	5.7	+50.9%
EBIT	7.8	12.4	4.6	+59.0%
Net Result	(1.1)	(3.2)	(2.1)	n.m.

• Increase in revenues thanks to traffic recovery without increase in tariffs
• Improvement in EBITDA thanks to higher revenues and lower growth in operating costs
• EBIT shows an improvement despite higher financial depreciation charges closely linked to the increase in EBITDA
• Higher Net Loss YOY mainly due to higher financial charges linked to the amortization of the accessory fees to the Senior Loan 1

FNM Group| From Adj. EBITDA to Net Result – PRO FORMA

Positive consolidated net result thanks to improvement in operating income

FNM Group | 9M 2022 Capex analysis

Capex mainly related to motorways and railway infrastructure, not yet offset by the related contributions

(in €mln)

1 – On behalf of Regione Lombardia Ferrovienord is engaged in purchasing, managing, maintaining and storing new rolling stock, to be allocated to railway companies holding a service contract with the Region, with a commitment to complete the supplies by 2025. The rolling stock supply programme is covered with funds allocated by Regione Lombardia, including charges to be corresponded to Ferrovienord for the anticipation and general management costs of the order set to 1% of the train supply contract amounts 2 – the amount includes the effect of higher trade payables on rolling stock purchases, delivered but not yet paid

FNM Group| Consolidated Cash Flow

Positive cash flow from operations offset by investments and financial activity

FNM Group| Net Financial Position evolution

NFP in line with expectations and within rating agencies requirements

FNM Group | Gross debt composition at 30th September 2022

1- Excluding debt for funded investments for €46.6 million

2 – Only on bank debt and bond

3 – Include (a) excess of grants paid to FNM but not yet paid to suppliers, and (b) portion of grants relative to advances on investments pending cash pay notice of use

FNM Group | Maturity structure at 30th September 2022

Debt average life 3.8 years, in line with total assets structure

Overview

Economic & Financial Results

FY 2022 Outlook

Appendix

FNM Group| FY 2022 Outlook

Outlook confirmed for FY2022, despite increased uncertainty around the trend of energy costs and inflation

1 – Guidance of 2022 Group results versus Group reported 2021 results (FNM + Mise consolidated since February 26th 2021)

²– Guidance of 2022 Group results versus Group pro forma 2021 results (FNM +Mise consolidated since January 1st 2021) 18

Overview

Economic & Financial Results

FY 2022 Outlook

Appendix

FNM Group| Shareholders and share performance

Relative performance YTD vs. main reference indexes

Share price @ {10-nov-22}: €{0,46}

Share capital profile		Shareholders' structure
Market capitalization @ 10-nov-22 : { }	€ 197,9 mln { }	27,7%	Regione Lombardia
N. of shares Average traded volumes (last 30 days) Share price change	434.9mln 115.576 orders { } -25,9 % YTD { }	57,6% 14,7%	Ferrovie dello Stato Market

FNM Group | Mobility demand in the period – by quarter

Demand recovery in 9M 2022 reflects ease of restrictions and return to a new normal

APL

FNM Group| Consolidated Profit & Loss – REPORTED¹

€ mln	9M21	9M22	∆€	∆%
Revenues from sales and servives	347.4	418.3	70.9	+20.4%
Other revenues and income	19.9	28.9	9.0	+45.2%
Total revenues and other income	367.3	447.2	79.9	+21.8%
Operating costs	(131.0)	(171.3)	(40.3)	+30.8%
Personnel costs	(112.2)	(120.2)	(8.0)	+7.1%
Adj. EBITDA	124.1	155.7	31.6	+25.5%
Non-ordinary income (expense)	0.4	0.0	(0.4)	n.m.
EBITDA	124.5	155.7	31.2	+25.1%
Depreciation and amortization	(55.6)	(68.6)	(13.0)	+23.4%
EBIT	68.9	87.1	18.2	+26.4%
Net financial income (expense)	(16.4)	(4.3)	12.1	-73.8%
EBT	52.5	82.8	30.3	+57.7%
Income taxes	(14.2)	(24.5)	(10.3)	+72.5%
Adj. Net Profit (Loss)	38.3	58.3	20.0	+52.2%
Profit (Loss) of companies consolidated at equity	(12.9)	(21.3)	(8.4)	n.m.
Net Profit (Loss)	25.4	37.0	11.6	+45.5%
Minority interest in Net Profit (Loss)	(3.0)	1.4	4.4	n.m.
Group Net Profit (Loss)	22.4	38.4	16.0	+71.2%

FNM Group | Revenues and Adj. EBITDA by segment – REPORTED¹

(€ mln) REVENUES (€ mln)	9M21	9M22	∆€	∆%
Ro.S.Co. & Services	57.4	58.5	1.1	+1.9%
Railway infrastructure	95.8	107.7	11.9	+12.4%
Road passenger mobility	87.9	97.5	9.6	+10.9%
Motorways	149.3	209.3	60.0	+40.2%
Intercompany	(23.1)	(25.8)	(2.7)	n.m.
Total	367.3	447.2	79.9	+21.8%

2 Adj. EBITDA (€ mln)	9M21	9M22	∆€	∆%
Ro.S.Co. & Services	35.7	32.2	(3.5)	-9.8%
Railway infrastructure	6.9	14.6	7.7	n.m.
Road passenger mobility	10.1	7.2	(2.9)	-28.7%
Motorways	71.4	101.7	30.3	+42.4%
Total	124.1	155.7	31.6	+25.5%

FNM Group| Consolidated Profit & Loss – PRO FORMA¹

€ mln	9M21 PF	9M22	∆€	∆%
Revenues from sales and servives	375.8	418.3	42.5	+11.3%
Other revenues and income	21.2	28.9	7.7	+36.3%
Total revenues and other income	397.0	447.2	Il gruppo in breve 50.2	+12.6%
Operating costs	(141.4)	(171.3)	(29.9)	+21.1%
Personnel costs	(119.7)	(120.2)	(0.5)	+0.4%
Adj. EBITDA	135.9	155.7	19.8	+14.6%
Non-ordinary income (expense)	0.4	0.0	(0.4)	n.m.
EBITDA	136.3	155.7	19.4	+14.2%
Depreciation and amortization	(61.8)	(68.6)	(6.8)	+11.0%
EBIT	74.5	87.1	12.6	+16.9%
Net financial income (expense)	(16.3)	(4.3)	12.0	-73.6%
EBT	58.2	82.8	24.6	+42.3%
Income taxes	(14.9)	(24.5)	(9.6)	n.m.
Adj. Net Profit (Loss)	43.3	58.3	15.0	+34.6%
Profit (Loss) of companies consolidated at equity	(13.5)	(21.3)	(7.9)	n.m.
Net Profit (Loss)	29.8	37.0	7.1	n.m.
Minority interest in Net Profit (Loss)	(3.0)	1.4	4.4	n.m.
Group Net Profit (Loss)	26.8	38.4	11.5	n.m.

FNM Group| Consolidated Profit & Loss – SEGMENT DETAILS (PRO FORMA)

	Ro.S.Co. & Services
€ mln	9M21	9M22	∆€	∆%
Rolling stock leasing	39.0	39.0	0.0	+0.0%
Other revenues	18.4	19.5	1.1	+6.0%
Total revenues	57.4	58.5	1.1	+1.9%
Adj. EBITDA	35.7	32.2	(3.5)	-9.8%
Adj. EBITDA/Revenues %	62.2%	55.0%
EBIT	12.3	7.5	(4.8)	-39.0%

Road passenger mobility Motorways

€ mln	9M21	9M22	∆€	∆%
Public contracts and grants	43.4	42.4	(1.0)	-2.3%
Transport services	39.6	48.5	8.9	+22.5%
Other revenues	4.9	6.6	1.7	+34.7%
Total revenues	87.9	97.5	9.6	+10.9%
Adj. EBITDA	10.1	7.2	(2.9)	-28.7%
Adj. EBITDA/Revenues %	11.5%	7.4%
EBIT	3.4	(3.1)	(6.5)	n.m.

	Railway infrastructure
€ mln	9M21	9M22	∆€	∆%
Public contracts and grants	76.2	83.6	7.4	+9.7%
Rolling stock leasing	8.6	11.0	2.4	+27.9%
Other revenues	11.0	13.1	2.1	+19.1%
Total revenues	95.8	107.7	11.9	+12.4%
Adj. EBITDA	6.9	14.6	7.7	n.m.
Adj. EBITDA/Revenues %	7.2%	13.6%
EBIT	7.3	12.9	5.6	+76.7%

€ mln	9M21 PF	9M22	∆€	∆%
Toll revenues	165.3	191.4	26.1	+15.8%
Other revenues	13.7	17.9	4.2	+30.7%
Total revenues	179.0	209.3	30.3	+16.9%
Adj. EBITDA	83.2	101.7	18.5	+22.2%
Adj. EBITDA/Revenues %	46.5%	48.6%
EBIT	51.5	69.8	18.3	+35.5%

FNM Group| Profit (Loss) of companies consolidated at equity – PRO FORMA

€/000	9M21 PF	Il gruppo in breve 9M22	∆€
Trenord Srl*	(12,388)	(25,446)	(13,058)
Autostrada Pedemontana Lombarda	(2,710)	1,198	3,908
Tangenziali Esterne di Milano Spa	(1,303)	(1,034)	269
Nord Energia Spa**	1,213	1,543	330
DB Cargo Italia Srl	1,444	1,333	(111)
Omnibus Partecipazioni Srl***	59	808	749
NordCom Spa	304	448	144
Busforfun.Com Srl	(110)	119	229
SportIT	0	(311)	(311)
Profit (Loss) of companies consolidated at equity	(13,491)	(21,342)	(7,851)

* Including the Profit (Loss) of TILO SA ** Including the Profit (Loss) of CMC MeSta SA *** Including the Profit (Loss) of ASF Autolinee Srl

FNM Group| Consolidated Balance Sheet

€ mln	30/09/2022	31/12/2021	∆€
Inventories	12.0	9.5	2.5
Trade receivables	145.9	133.1	12.8
Other current receivables	84.8	83.2	1.6
Current financial receivables	8.4	7.8	0.6
Financed investment receivables	40.6	39.8	0.8
Trade payables	(177.8)	(168.3)	(9.5)
Other current payables and current provisions	(151.4)	(125.6)	(25.8)
Operating Net Working Capital	(37.5)	(20.5)	(17.0)
Other receivables - Rolling stock 2017-2032	74.0	47.5	26.5
Financed investment receivables - Rolling stock 2017-2032	223.6	98.3	125.3
Trade payables - Rolling stock 2017-2032	(340.8)	(204.0)	(136.8)
Net Working Capital for Financed Investments	(43.2)	(58.2)	15.0
Total Net Working Capital	(80.7)	(78.7)	(2.0)
Fixed assets	749.6	748.4	1.2
Equity interests	148.3	158.7	(10.4)
Non-current receivables	270.2	241.3	28.9
Non-current liabilities	(20.8)	(20.4)	(0.4)
Provisions	(108.5)	(123.8)	15.3
Assets (Liabilities) held for sale	8.0	0.0	8.0
NET INVESTED CAPITAL	966.1	925.5	40.6
- Equity	- 272.6	- 228.3	- 44.3
Adjusted Net Financial Position	739.4	755.6	(16.2)
Net Financial Position for Funded Investments (Cash)	(45.9)	(58.4)	12.5
Net Financial Position	693.5	697.2	(3.7)
TOTAL SOURCES	966.1	925.5	40.6

* Adjusted Net Financial Position restated excluding only cash and current payables related to financial investments made in accordance with Regione Lombardia's "2017-2032 Rolling Stock purchase programme", with the aim of sterilizing the timing effects of contributions collection and payments made to suppliers, recognized in accordance with IFRIC 12.

FNM Group| Consolidated Balance Sheet – NFP composition

€ mln	30/09/2022	31/12/2021 Il gruppo in breve	∆€
Cash and bank deposits	(259.5)	(293.4)	33.9
Current financial debt	146.6	201.1	(54.5)
Current Net Financial Position (Debt/-Cash)	(112.9)	(92.3)	(20.6)
Non-current financial debt	852.3	847.9	4.4
Adj. Net Financial Position	739.4	755.6	(16.2)
Net Financial Position for funded investments (Debt/-Cash)	(45.9)	(58.4)	12.5
Net Financial Position	693.5	697.2	(3.7)

Contacts

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