Fnm — Investor Presentation 2022

Mar 21, 2022

FNM Group FY 2021 RESULTS

March 21, 2021

FNM Group| Overview

1. Companies managing complementary digital platforms, allowing the implementation of Mobility as a Community (MaaC) paradigm. Sportit is active under the brad Snowit.

2. Companies operating in the freight mobility and logistics sector, at present included respectively in the Railway infrastructure and in Ro.S.Co. & Services segments. Malpensa Intermodale and Malpensa Distripark are in a start-up phase

3. Company operating in the Road passenger mobility segment, but considered in the Ro.S.Co. segment for the purposes of preparing the financial statements

4. Companies fully integrated since February 26, 2021

Overview

Economic and financial results

• Financial highlights
• Mobility demand in the period
• FY 2021 consolidated results

Sustainability

Outlook and dividends

Appendix

FNM Group| FY 2021 Highlights

1. For the purposes of P&L, in 2021 MISE is consolidated since February 26, comparing with FNM's 2020 actual results

2. 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.

3. Adjusted EBITDA: excluding extraordinary gains and losses

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

5. For NFP, data at December 31, 2021 compares with data at December 31, 2020 which does not include the effects of the acquisition of the control stake in MISE

6. 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 2021, but still below pre-pandemic levels

148,9

FY 2019 FY 2020 FY 2021 Light vehicles Heavy vehicles

5

196,6

FNM Group | Mobility demand in the period – by quarter

FY 2021 demand reflects three full months of travel restrictions¹ in IQ, followed by recovery from 2Q

Trenord (mln passengers) 58 53 40 ^{11 22 21 20 28 30 37} IQ 2Q 3Q 4Q 2019 2020 2021 -46% -30% +153% -79% +39% -50% +84% -68%

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 FY 2020	PRO FORMA FY 2021	D	D %
Railway infrastructure	125 7 ,	131 8 ,	6 1 ,	9% 4 ,
S Co & Service Ro	81 8 ,	77 1 ,	(4 7) ,	7% -5 ,
Road mobility passenger	94 7 ,	124 0 ,	29 3 ,	30 9% ,
Motorways	194 6 ,	242 6 ,	48 0 ,	24 7% ,
Intercompany	(22 7) ,	(31 8) ,	(9 1) ,	40 1% ,
Total	474 1 ,	543 7 ,	69 6 ,	14 7% ,
EBITDA2 ADJUSTED	PRO FORMA FY 2020	PRO FORMA FY 2021	D	D %
Railway infrastructure	5 8 ,	5 1 ,	(0 7) ,	-12 1% ,

	FY 2020	FY 2021
Railway infrastructure	5 8 ,	5 1 ,	(0 7) ,	-12 1% ,
S Co & Service Ro	54 3 ,	46 2 ,	(8 1) ,	-14 9% ,
Road mobility passenger	10 0 ,	12 7 ,	2 7 ,	27 0% ,
Motorways	79 2 ,	101 3 ,	22 1 ,	27 9% ,
Total	149 3 ,	165 3 ,	16 0 ,	10 7% ,

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

Il gruppo in breve Railway infrastructure

• Higher leasing revenues on the rolling stock given in use to Trenord by Regione Lombardia and managed by Ferrovienord, as a result of the expansion of the fleet
• Increase in revenues from the sale of residual stock and land, as well as higher income from commercial activities;
• Lower revenues from public contracts and grants partially compensated by higher proceeds recognised by Regione Lombardia for 2020, to cover the impact of the measures taken to face the COVID-19 emergency,
• Higher costs for:
• Infrastructure and maintenance design activities
• real estate management (including sanitation and extraordinary cleaning)
• IT systems upgrade
• Higher provisions for rolling stock fleet maintenance
• Increased provisions for bad debts and for risks connected to disputes with contractors
• Slightly lower 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
• Positive one off proceeds from the sale of a building in 2021 (0.3 mln euros)
• 1.3 mln euros insurance compensation in 2020
• Adjusted EBITDA¹ -14.9%
• Effect of lower revenues
• Higher operating costs (including FNMPAY start up cost and development costs for Fili and H2iseO)
• HIgher personnel costs (different mix and + 3FTE)

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

(in mln € )

• Higher revenues from transportation services thanks to increased outsourced additional transport services, to ensure social distancing, higher passengers transported and car sharing.

• Effect of higher revenues
• Higher costs for outsourced additional transport services, bus fleet management (fuel, maintenance and cleaning) and personnel

FNM Group | Trenord: FY 2021 highlights

Improving performance thanks to Government support measures and traffic recovery; bottom line in break even

Revenues up 57.2 mln euros thanks to higher revenues from Public contracts and grants thanks to Government support measures compensating for lower ticketing revenues for 98.3 mln euros (80.4 mln euros in 2020). Ticketing revenues increasing to 193.1 mln euros (+38.3 mln euros yoy) thanks to higher LPT demand.

EBITDA down 7.4 mln euros due to higher cost of personnel (+65 FTE) and higher operating costs in relation to increased production yoy.

Trenord closes 2021 in break even thanks to lower D&A and deferred taxes in line with 2020.

FNM Group | APL: FY 2021 highlights

Positive impact of traffic recovery

Revenues increase by 7.7 mln euros thanks to traffic recovery.

EBITDA up 6.7 mln euros thanks to higher revenues, partly compensated by higher operating cost and cost of personnel.

Net loss to 2.0 from 4.7 mln euros as a result of higher financial expenses (higher interest rate on Bidge Financiang Bis and financial expenses in relation to Senior 1 Financing granted in August for the construction of tranche B2 and C of APL infrastructure).

FNM Group| From EBITDA to Net Result – PRO FORMA

Bottom line recovery despite non recurring fees on bridge loan

FNM Group | FY 2021 Capex analysis

(in mln € ) FY 2021 capex mainly related to the purchase of new rolling stock and motorway infrastructure

FNM Group| Consolidated Cash Flow

FY 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 31 December 2021

(mln euros)

Uncommitted lines 131 mln euros

1- Excluding the non-current portion of debt for funded investments for 12.5 million euros

2 – Only on bank debt and bond

FNM Group | Debt maturities as at 31 December 2021

Debt average life in line with total assets structure

(mln euros)

Overview

Economic and financial results

Outlook and dividends

Sustainability

Appendix

FNM Group| FY 2022 outlook

Results expected to improve thanks to further demand recovery

1. guidance of 2022 Group results versus Group reported 2021 results (FNM + Mise consolidated since February 26, 2021)

2. guidance of 2022 Group results versus Group pro forma 2021 results (FNM +Mise consolidated since January 1, 2021)

FNM Group| Proposed dividend distribution

Dividend share per	0 023 Euro ,
Total Cash Out	mln 10 0 Euro
Dividend Yield (at March 2022) 18 ,	2% 4 ,
Payable follows: as	mln from profit and mln 5 1 2021 4 9 net euros from of profits carried forward euros reserves

Overview

Economic and financial results

Outlook and dividends

Sustainability

Appendix

FNM Group| ESG targets: pillars

ESG targets on track

Pillars	Targets	Metrics	Actual 219	Actual 2020	Actual 2021	Target 2025
	motorway business1 in the Entry	motorway/year Vehicles-km driven on the	3.1 bln vkm	2.1 bln vkm	2.6 bln vkm	3.1 bln vkm
	Strengthening of road LPT1	services/year Passengers transported by bus	77.8 mln pax	45.5 mln pax	48.2 mln pax	80 mln pax
Mobility	LPT2 Central role of rail	Trenord/year transported by Passengers	214 mln pax	93 mln pax	116.3 mln pax	>180 mln pax
Integrated mobility and last mile		(hours/year) Car sharing rentals	70.000	62.000	93.499	250.000
Infrastructure	Rail infrastructure, nodes and stations	Managed on rail infrastructure and for investments stations refurbishment	mln 39 euros	mln 35 euros	mln euros (cum '20-21) 93 o/w mln euros in '21 58	21-25)3 euros (cum ~700 mln
	Rail infrastructure, nodes and stations	interested by urban (FILI project) Areas regeneration	0	0	0	m2 2 mln
	Central role of the rail RoSCo in sector	New trains in operation	0	6	o/w (cum '20-21) in '21 9 3 (1 744) 524, 2 loco ETR DE	224 (cum 21-25)
Fleets	fleets Bus	of the bus fleet fuelled by gas, hydrogen, electricity % or Euro diesel fuel and higher 6	36%	37%	39%	58%
		o/w electrified (including hydrogen)	0%	0%	0%	13%
People/community	partner (MaaC5 ) Mobility	Communities/projects/entities served with and B2B B2C criteria; communities cross fertilization	n.a.	n.a.	6	(cum 21-25) >15

1 – Significant KPIs for the purposes of True Value model, representing an important part of positive and negative impacts

2 – Trenord not included in the scope for True Value calculation

3 – estimates, including optimization assumptions

4 – plus 4 additional trains being supplied and related to previous orders

5 - Mobility as a Service (MaaS) and Mobility as a Community (MaaC)

FNM Group| ESG targets: enablers

ESG targets on track

Enablers	Targets	Metrics	Actual 219	Actual 2020	Actual 2021	Target 2025
Innovation and data management	Continuos innovation	technological/digital Resources for R&D projects	mln €1.5	mln €1.5	mln €4.1 in 2021	11 mln (cum 21-25) €
	Emissions and consumption reduction	2 / CO2 emissions Scope 1 and revenues	eq/M€ 151 ton Co2	eq/M€ 74 ton Co2	eq/M€ 70.4 ton Co2	eq/M€ 48 ton Co2	-5%
efficiency Energy and emissions reduction	Emissions and consumption reduction	Energy from green sources utilized (corporate consumption and electric rail traction) for the services along the infrastructure managed by the Group	0,70%	14,80%	51%	100%
Governance,	MBO definition	of directors with sustainability linked % MBOs	21%	20%	67%	51%
ethicsand	Corporate culture	Whistleblowing tool	Model under definition	in the finalization stages	Final implementation	By 2021
sustainability culture	Tax risk control and Tax control framework	Activation and maintenance of a control and transparency tool for tax risk management	Model under definition	Tax Control Framework project start	Project ongoing	By 2022
Attraction, valorisation and wellbeing of employees	Competencies development	Business continuity plan introduction	Planning phase	Planning phase (Business Continuity Management plan started)	Project ongoing	By 2025

FNM Group| EU taxonomy eligible activities as at December 31, 2021

High eligibility rates for the FNM Group

of eligible activities according % the EU to taxonomy		of eligible activities % non
Revenues	98 3% ,	1 7% ,
Opex	95 6% ,	4% 4 ,
Capex	98 6% ,	4% 1 ,

KPIs were calculated on the basis of the data of the companies included in the scope of full consolidation, and all balances were calculated on a consolidated basis, net of intragroup items.

FNM Group | True Value model as a tool to measure external impacts and generated value

Logical scheme of the True Value¹ model of the FNM Group

FNM Group | True Value at FY 2021

Increase in True Value thanks to Trenord and the acquisition of MISE

Direct and indirect economic impact in 2021: 53% of the total True Value of FNM Group (67% excluding Trenord)

Overview

Economic and financial results

Outlook and dividends

Sustainability

Appendix

FNM Group| Shareholders and share performance

Relative performance Jan. 1, 2021 to date, vs reference indexes

Share price March 18, 2022: 0.54 euro

Share capital profile

Market capitalization as at March 18, 2022	236.2 mln euros
N. Of shares	434.9 mln
Average traded volumes (last 30 days)	460,884
2021 YTD change	-10.7%

FNM Group| Consolidated Profit & Loss – REPORTED¹

(€M)	FY 2020	FY 2021	Var	Var %
from sales and services Revenues	258 8 ,	483 3 ,	Il gruppo in breve 224 5 ,	86 7% ,
Other and income revenues	20 7 ,	30 7 ,	10 0 ,	48 3% ,
Total and other income revenues	279 5 ,	514 0 ,	234 5 ,	83 9% ,
Operating costs	(97 7) ,	(207 0) ,	(109 3) ,	n m
Personnel costs	(111 7) ,	(153 5) ,	(41 8) ,	37 4% ,
ADJ EBITDA	70 1 ,	153 5 ,	83 4 ,	nm
Non-ordinary (expense) income	(1 9) ,	0 4 ,	2 3 ,	n m
EBITDA	68 2 ,	153 9 ,	85 7 ,	nm
and Depreciation amortisation	(41 8) ,	(78 0) ,	(36 2) ,	86 6% ,
EBIT	26 4 ,	9 75 ,	49 5 ,	nm
financial (expense) Net income	(0 1) ,	(21 4) ,	(21 3) ,	n m
of which divestments gains on	1 0 ,	0 0 ,	(1 0) ,	n m
EARNINGS BEFORE TAXES	26 3 ,	54 5 ,	28 2 ,	nm
Income taxes	(3 6) ,	(17 1) ,	(13 5) ,	n m
(LOSS) ADJUSTED NET PROFIT	22 7 ,	37 4 ,	14 7 ,	64 8% ,
Profit (Loss) of consolidated companies equity at	2 0 ,	5 7 ,	3 7 ,	n m
Profit (Loss) Net	24 7 ,	43 1 ,	18 4 ,	74 5% ,
(Loss) Profit Minority interest in Net	0 5 ,	2 3 ,	1 8 ,	n m
Profit (Loss) Group Net	24 2 ,	40 8 ,	16 6 ,	6% 68 ,

FNM Group | Revenues and Adjusted EBITDA by segment – REPORTED¹

(in mln € )

Il gruppo in breve	FY	FY	D	D
REVENUES	2020	2021		%
Railway	125	131	6	9%
infrastructure	7	8	1	4
management	,	,	,	,
& Service Ro S Co	81 8 ,	77 1 ,	(4 7) ,	-5 7% ,
Road	94	124	29	30
mobility	7	0	3	9%
passenger	,	,	,	,
infrastructure	0	212	212	nm
Motorway	0	9	9
management	,	,	,
Intercompany	(22	(31	(9	40
	7)	8)	1)	1%
	,	,	,	,
Total	279	514	234	83
	5	0	5	9%
	,	,	,	,

EBITDA2	2020	2021	D	D
ADJUSTED	FY	FY		%
Railway	5	5	(0	-12
infrastructure	8	1	7)	1%
management	,	,	,	,
& Service Ro S Co	54 3 ,	46 2 ,	(8 1) ,	9% -14 ,
Road	10	12	2	0%
mobility	0	7	7	27
passenger	,	,	,	,
infrastructure	0	89	89	nm
Motorway	0	5	5
management	,	,	,
Total	70	153	83	119
	1	5	4	0%
	,	,	,	,

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

FY 2020

FNM Group| Consolidated Profit & Loss – PRO FORMA¹

	PRO FORMA	PRO FORMA
(€M)	FY 2020	FY 2021	Var	Il gruppo in breve Var %
from sales and services Revenues	446 2 ,	511 7 ,	65 5 ,	7% 14 ,
Other and income revenues	27 9 ,	32 0 ,	4 1 ,	14 7% ,
Total and other income revenues	474 1 ,	543 7 ,	69 6 ,	14 7% ,
Operating costs	(172 8) ,	(217 4) ,	(44 6) ,	25 8% ,
Personnel costs	(152 0) ,	(161 0) ,	(9 0) ,	5 9% ,
ADJ EBITDA	149 3 ,	165 3 ,	16 0 ,	10 7% ,
(expense) Non-ordinary income	(1 9) ,	0 4 ,	2 3 ,	n m
EBITDA	147 4 ,	165 7 ,	18 3 ,	4% 12 ,
and Depreciation amortisation	(80 6) ,	(79 7) ,	0 9 ,	-1 1% ,
EBIT	66 8 ,	86 0 ,	19 2 ,	28 7% ,
financial (expense) Net income	(54 5) ,	(21 3) ,	33 2 ,	n m
of which divestments gains on	1 1 ,	0 0 ,	(1 1) ,	n m
of which financial for IFRS MISE FTA expense	(52 0) ,	0 0 ,	52 0 ,	n m
EARNINGS BEFORE TAXES	12 3 ,	64 7 ,	52 4 ,	n m
Income taxes	(14 6) ,	(19 1) ,	(4 5) ,	8% 30 ,
(LOSS) ADJUSTED NET PROFIT	(2 3) ,	45 6 ,	47 9 ,	nm
Profit (Loss) of consolidated companies equity at	(3 6) ,	5 1 ,	8 7 ,	nm
Profit (Loss) Net	(5 9) ,	50 7 ,	56 6 ,	nm
Profit (Loss) Minority interest in Net	0 5 ,	2 3 ,	1 8 ,	n m
Profit (Loss) Group Net	(6 4) ,	48 4 ,	8 54 ,	nm

FNM Group| Consolidated Profit & Loss – segment details

Railway infrastructure Ro.S.Co. & Service

(€M)	FY 2020	FY 2021	Var.	Var.%
Public contracts and grants	100,7	99,3	(1,4)	-1,4%
Rolling stock leasing	9,3	12,3	3,0	32,3%
Other revenues	15,7	20,2	4,5	28,7%
Total revenues	125,7	131,8	6,1	4,9%
Adj. EBITDA	5,8	5,1	(0,7)	-12,1%
Adj. EBITDA/Revenues %	4,6%	3,9%
EBIT	3,6	4,9	1,3	36,1%

Road passenger mobility Motorways

(€M)	FY 2020	FY 2021	Var.	Var.%
Public contracts and grants	51,7	60,7	9,0	17,4%
Transport services	35,3	56,8	21,5	60,9%
Other revenues	7,7	6,5	(1,2)	-15,6%
Total revenues	94,7	124,0	29,3	30,9%
Adj. EBITDA	10,0	12,7	2,7	27,0%
Adj. EBITDA/Revenues %	10,6%	10,2%
EBIT	(1,7)	3,8	5,5	nm

(€M)	2020 FY	2021 FY	Var	% Var
Rolling stock leasing	56 8 ,	52 1 ,	(4 7) ,	3% -8 ,
Other revenues	25 0 ,	25 0 ,	0 0 ,	0 0% ,
Total revenues	81 8 ,	77 1 ,	(4 7) ,	-5 7% ,
Adj EBITDA	54 3 ,	46 2 ,	(8 1) ,	-14 9% ,
EBITDA/Revenues Adj %	66 4% ,	59 9% ,
EBIT	24 5 ,	15 0 ,	(9 5) ,	-38 8% ,

	PRO FORMAPRO FORMA
(€M)	FY 2020	FY 2021	Var	Var %
Toll revenues	187 4 ,	226 1 ,	38 7 ,	20 7% ,
Other revenues	7 2 ,	16 5 ,	9 3 ,	129 2% ,
Total revenues	194 6 ,	242 6 ,	48 0 ,	24 7% ,
Adj EBITDA	79 2 ,	101 3 ,	22 1 ,	27 9% ,
Adj EBITDA/Revenues %	40 7% ,	8% 41 ,
EBIT	40 4 ,	62 3 ,	21 9 ,	2% 54 ,

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

Improving results of Trenord and APL thanks to demand recovery and Government contributions for LPT

PRO FORMA PRO FORMA
(€ '000)	FY 2020	FY 2021	Var.
Trenord Srl1	(3.796)	57	3.853
Autostrada Pedemontana Lombarda	(3.493)	626	4.119
Tangenziali Esterne MilanoS.p.A.	(2.200)	(1.866)	334
Nord Energia Spa2	2.568	2.068	(500)
DB Cargo Italia Srl	1.813	2.356	543
Omnibus Partecipazioni Srl3	1.052	1.937	885
NordCom Spa	282	453	171
Busforfun.Com Srl	0	(550)	(550)
SportIT	0	(9)	(9)
Conam Srl	44	0	(44)
Sems	81	0	(81)
Profit (Loss) of companies consolidated at equity	(3.649)	5.072	8.721

1 - including the profit (loss) of TILO SA

2 - including the profit (loss) of CMC MeSta SA

3 - including the profit (loss) of ASF Autolinee Srl

FNM Group| Consolidated Balance Sheet¹

(€M)	Dec. 31, 2021	Dec. 31, 2020	Var.
Inventories	9,5	8,7	0,8
Trade receivables	133,1	82,6	50,5
Other current receivables	130,7	99,0	31,7
Current financial receivables	145,9	41,6	104,3
Trade payables	(372,3)	(177,5)	(194,8)
Other current payables and current provisions	(125,6)	(70,7)	(54,9)
Net Working Capital	(78,7)	(16,3)	(62,4)
Fixed assets	748,4	468,3	280,1
Equity interests	158,7	168,0	(9,3)
Non-current receivables	241,3	24,2	217,1
Non-current liabilities	(20,4)	(24,4)	4,0
Provisions	(123,8)	(60,9)	(62,9)
NET INVESTED CAPITAL	925,5	558,9	366,6
Equity	228,3	477,1	(248,8)
Adjusted Net Financial Position	758,7	43,8	714,9
Net Financial Position for funded investments (cash)	(61,5)	38,0	(99,5)
Net Financial Position	697,2	81,8	615,4
TOTAL SOURCES	925,5	558,9	366,6

FNM Group| Consolidated Balance Sheet – NFP composition¹

(€M)	31 2021 Dec ,	31 2020 Dec ,	Var
Cash and bank deposits	(253 3) ,	(126 1) ,	(127 2) ,
financial debt Current	164 1 ,	101 2 ,	62 9 ,
(Debt/ -Cash) Financial Position Current Net	(89 2) ,	(24 9) ,	(64 3) ,
financial debt Non-current	847 9 ,	68 7 ,	779 2 ,
Adjusted Financial Position Net	758 7 ,	43 8 ,	714 9 ,
(Debt/ -Cash) Financial for funded Net Position investments	(61 5) ,	38 0 ,	(99 5) ,
Financial Position Net	697 2 ,	81 8 ,	615 4 ,

Contacts

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