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Fnm Investor Presentation 2023
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Investor Presentation
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FNM Group 9M 2023 RESULTS
15 November 2023
An integrated player in transportation and mobility in Northern Italy
| Motorways | Management of motorway infrastructure trough a concession expiring in 2028 Highway from Milan to Serravalle Scrivia (A7 86Km) • Milan West, East and North ring roads (A50 33Km, A51 29Km, A52 19Km) • Pavia West ring road (A54 9Km) and Bereguardo-Pavia motorway link (A53 8Km) • |
185 Km Motorway Network |
|
|---|---|---|---|
| Ro.S.Co & Services |
Leasing of rolling stock in the local public transport (LPT) and freight logistics sector (mainly to Trenord and DB Cargo Italia) Corporate services to subsidiaries and management of the real estate assets of the Group Development of complementary digital platforms according to MaaC paradigm |
98 Owned trains |
|
| Railway Infrastructure |
Management of railway infrastructure in Lombardy on the basis of the concession expiring on 31 October 2060 Intermodal terminal management and real estate development in freight logistic sector |
330 Km Railway Network |
1 – includes the indirect participation in TILO SA (50% controlled by Trenord and 50% by Swiss Federal Railways SBB) 2 – FNM owns 22.55% of Tangenziali Esterne di Milano S.p.A. which holds a single shareholding equal to 48.4% of the capital of the highway concessionaire Tangenziale Esterna S.p.A. 3 – FNM owns 50% of Omnibus Partecipazioni S.r.l. with Arriva Italia, holding company which in turn owns about 50% of ASF Autolinee. The remaining 50% is held by S.P.T. Holding S.p.A. whose shareholders are local public entities; 4 – BFF owns 95% of BFF.CH SA
Overview
Economic & Financial Results
- Financial highlights
- Mobility demand in the period
- 9M 2023 consolidated results
Outlook
Appendix
FNM Group| 9M 2023 Financial Highlights
1 – Excluding the effects of the sale of La Linea/Martini Bus and absence of car sharing public contribution in 9M23 (see slide 27 for details)
5
% = EBITDA Margin
FNM Group | Motorways - traffic trend on MISE network (vehicles-km)
Full recovery of light traffic to 2019 levels, while heavy vehicles are steadily higher than pre-Covid levels
FNM Group | LPT – mobility demand for bus and rail transport (n. pax)
Recovery of demand across all segments but overall LPT traffic still below pre pandemic levels
FNM Group | Adj. EBITDA evolution
Growth underpinned by traffic recovery and new TILO/TAF trains, despite negative effect of the sale of La Linea/Martini and the loss of public contribution on car sharing
| REPORTED | |||||
|---|---|---|---|---|---|
| 9M 2022 | 9M 2023 | ∆€ | ∆% | ||
| 101.7 | 113.0 | 11.3 | +11.1% | ||
| 32.2 | 33.9 | 1.7 | +5.3% | ||
| 14.6 | 8.2 | (6.4) | -43.8% | ||
| 7.2 | 5.9 | (1.3) | -18.1% | ||
| 155.7 | 161.0 | 5.3 | +3.4% | ||
| LIKE-FOR-LIKE1 | ||||||
|---|---|---|---|---|---|---|
| Adj. EBITDA (€ mln) | 9M 2022 | 9M 2023 | ∆€ | ∆% | ||
| Motorways | 101.7 | 113.0 | 11.3 | +11.1% | ||
| Ro.S.Co. & Services | 32.2 | 33.9 | 1.7 | +5.3% | ||
| Railway infrastructure | 14.6 | 8.2 | (6.4) | -43.8% | ||
| Road passenger mobility | 3.3 | 5.6 | 2.3 | +69.7% | ||
| Total | 151.8 | 160.7 | 8.9 | +5.9% | ||
8
1 – Excluding the effects of the sale of La Linea/Martini Bus and absence of car sharing public contribution in 9M23 (see slide 27 for details)
FNM Group| 9M 2023 Group net result
Positive consolidated net result despite change in perimeter and higher D&A, strong rebound of companies consolidated at equity
FNM Group | Adj. EBITDA by segment – Motorways
- Higher revenues driven by toll revenues (+€12.4mln) thanks to the combined effect of traffic recovery and network extension from 1 st March 2023
- Higher overall expenses for €2.1mln driven by a heterogeneous trend among cost categories:
- Operating costs up by €3.7mln following higher variable costs linked to traffic performance, intercompany service costs, IT expenses and net provisions for risks and charges
- Maintenance costs down by €1.7mln as a result of higher net releases from the renewal fund (+€9.2mln), which more than offset the increased costs (-€7.4mln) mainly related to works on Po Bridge and Zerbolò gate
- Staff costs in line YoY: higher costs from the renewal of the National Collective Bargaining Agreement and other variable components, almost fully offset by the absence of redundancy incentives charges booked in 9M22
(€mln)
FNM Group | Adj. EBITDA by segment – Ro.S.Co. & Services
(€mln)
FNM Group | Adj. EBITDA by segment – Railway infrastructure
- Higher expenses for the combined effect of:
- Operating expenses (excluding cyclical maintenance provisions) up by €3.9mln mainly because of costs for infrastructure maintenance and design, also incurred to deal with the damage resulting from the derailment that occurred at the end of 2022
- Staff costs up by €3.5mln due to headcount increase (+14 FTE) and absence of recovery of sick pay charges for 2015-2018 booked in 2022 (+€2.3mln in 9M22)
(€mln)
FNM Group | Adj. EBITDA by segment – Road passenger mobility
Financial performance mainly linked to the deconsolidation of La Linea/Martini from January 16th 2023 and the loss of car sharing contribution from January 1st 2023
On a like-for-like basis, EBITDA improvement as a result of better marginality for the combined effect of:
- Revenues up by €0.9mln mainly thanks to transport services (+€7.3mln) driven by more passengers transported and train replacements and capital grants for new busses (+0.6mln), which more than compensate absence of Government compensation for additional services (-€4.5mln) and Covid-19 related losses (-€2.7mln)
- Operating expenses down by €3.2mln mainly due to the normalization of fuel cost and fewer subcontracts to third parties to carry out additional services (+€4.0mln)
- Staff costs up by €1.8mlm due to headcount increase (+23 FTE) (€mln)
1 – Excluding the effects of the sale of La Linea/Martini Bus and absence of car sharing public contribution in 9M23 (see slide 27 for details) % = EBITDA Margin
FNM Group | Associates & JV – Trenord
Traffic recovery continues to drive improvement in operating performance, new Service Contract with RL under finalization
HIGHLIGHTS
- Strong increase in revenues as a result of:
- ticketing revenues up by €62.4mln thanks to the recovery in passenger volume, product mix and tariff increase from Sep.22/Jan.23
- service agreement revenues up by €3.0mln
- other revenues up by €10.8mln, including a €5.0mln tax credit on energy costs
- EBITDA at €133.1mln (+€62.3mln) thanks to higher revenues partially offset by staff costs (-€13.1mln) and other operating costs (-€0.8mln)
- EBIT turns positive at €6.9mln (+€64.4mln)
- 9M23 Net Loss following higher interest expenses and fiscal effect which compensate the improved operating performance
The NEW 2023-2033 Public Service Contract with Regione Lombardia:
positively evaluated by ART and in the late stage of the approval process – Regione Lombardia approved an extension until signing date and, in any case, no later than 30 November 2023 to allow for the completion of required administrative procedures
FNM Group | Associates & JV – APL
Traffic recovery continues to support operating performance, bottom line impacted by high interest rates
- Revenues up €2.0mln thanks to traffic growth above pre-Covid levels without increase in tariffs
- EBITDA in line YoY to €16.8mln. Growth in revenues mainly compensated by higher personnel costs (-€2.1mln) due to the internalization of activities in operations and collection
- Higher Net Loss YoY mainly due to higher financial charges linked to higher interests on existing loans at variable rate and amortization of the Senior Loan 1 accessory fees
FNM Group | 9M 2023 Capex analysis
Lower investments mainly driven by delay in TAF revamping, expected acceleration in 4Q23 but guidance revised downward
| Il gruppo | in breve | ||
|---|---|---|---|
| € mln | 9M 2022 | 9M 2023 | ∆€ |
| Motorways | 32.8 | 18.1 | (14.7) |
| Ro.S.Co. & Services | 49.9 | 11.8 | (38.1) |
| Railway infrastructure | 4.7 | 3.0 | (1.7) |
| Road passenger mobility | 18.1 | 19.4 | 1.3 |
| Gross CAPEX made by FNM Group | 105.5 | 52.3 | (53.2) |
FNM Group| Consolidated Cash Flow
Positive cash flow generation, sale of La Linea/Martini and dividends from Associates drive free cash flow of the period
FNM Group| Net Financial Position evolution
NFP in line with expectations and within rating agencies requirements
FNM Group | Gross debt composition at 30th September 2023
1 – Excluding debt for funded investments for €69.7 million 2 – Only on bank debt and bond
3 – Include the surplus of grants for funded investments in railway infrastructure, rolling stock other than the «2017 – 2032 Programme» and motorway infrastructure collected ahead of the State of Work Progress accrued on such investments
FNM Group | Maturity structure at 30th September 2023
Debt average life 2.9 years, in line with total assets structure
Overview
Economic & Financial Results
- Financial highlights
- Mobility demand in the period
- 9M 2023 consolidated results
Sustainability Outlook
Appendix
FNM Group| FY 2023 Outlook
Confirmed guidance for Revenues and EBITDA and lower Adj. NFP following CAPEX slowdown
| Revenues | +1% - 5% YoY +2% - 7% excluding La Linea/Martini Bus and €1.8 mln contribution to E-Vai |
|---|---|
| Adj. EBITDA | +1% - 5% YoY +2% - 7% excluding La Linea/Martini Bus and €1.8 mln contribution to E-Vai |
| Adj. EBITDA Margin | In line with 2022 |
| Adj. NFP | €660-720 mln, within rating agencies requirements Gross CAPEX with FNM funds -40% / -50% YoY |
| Adj. NFP / EBITDA | 3.3x – 3.6x |
Overview
Economic & Financial Results
- Financial highlights
- Mobility demand in the period
- 9M 2023 consolidated results
Outlook
Appendix
FNM Group| Shareholders and share performance
Relative performance YTD vs. main reference indexes
Share price @ {13-nov-23}: €{0,43}
| Share capital profile | Shareholders' structure | |||
|---|---|---|---|---|
| Market capitalization @ 13-nov-23 : { } N. of shares |
€ 186,1 mln { } 434.9 mln |
27.7% | Regione Lombardia Ferrovie dello Stato |
|
| Average traded volumes (last 30 days) Share price change |
161.567 orders { } 0,8 % YTD { } |
57.6% 14.7% |
Market |
FNM Group| Consolidated Profit & Loss
| € mln | 9M 2022 | 9M 2023 | ∆€ | ∆% |
|---|---|---|---|---|
| Revenues from sales and servives | 418.3 | 427.5 | 9.2 | +2.2% |
| Other revenues and income | 28.9 | 28.8 | (0.1) | -0.3% |
| Total revenues and other income | 447.2 | 456.3 | 9.1 | +2.0% |
| Operating costs | (171.3) | (174.7) | (3.4) | +2.0% |
| Personnel costs | (120.2) | (120.6) | (0.4) | +0.3% |
| Adj. EBITDA | 155.7 | 161.0 | 5.3 | +3.4% |
| Non-ordinary income (expense) | 0.0 | 0.0 | 0.0 | n.m. |
| EBITDA | 155.7 | 161.0 | 5.3 | +3.4% |
| Depreciation and amortization | (68.6) | (77.6) | (9.0) | +13.1% |
| EBIT | 87.1 | 83.4 | (3.7) | -4.2% |
| Net financial income (expense) | (4.3) | (8.2) | (3.9) | +90.7% |
| EBT | 82.8 | 75.2 | (7.6) | -9.2% |
| Income taxes | (24.5) | (18.7) | 5.8 | -23.7% |
| Adj. Net Profit (Loss) | 58.3 | 56.5 | (1.8) | -3.1% |
| Profit (Loss) of companies consolidated at equity | (21.3) | (2.1) | 19.2 | n.m. |
| Net Profit (Loss) | 37.0 | 54.4 | 17.4 | +47.0% |
| Minority interest in Net Profit (Loss) | (1.4) | 0.1 | 1.5 | -107.1% |
| Group Net Profit (Loss) | 38.4 | 54.3 | 15.9 | +41.4% |
FNM Group| Consolidated Profit & Loss – SEGMENT DETAILS
| Motorways | ||||
|---|---|---|---|---|
| € mln | 9M 2022 | 9M 2023 | ∆€ | ∆% |
| Toll revenues | 191.4 | 203.8 | 12.4 | +6.5% |
| Other revenues | 17.9 | 18.9 | 1.0 | +5.6% |
| Total revenues | 209.3 | 222.7 | 13.4 | +6.4% |
| Adj. EBITDA | 0.0 101.7 |
113.0 | 11.3 | +11.1% |
| Adj. EBITDA/Revenues % | 48.6% | 50.7% | ||
| EBIT | 69.8 | 67.3 | (2.5) | -3.6% |
| C 10 |
|
|---|---|
Railway infrastructure
| € mln | 9M 2022 | 9M 2023 | ∆€ | ∆% |
|---|---|---|---|---|
| Public contracts and grants | 83.6 | 83.8 | 0.2 | +0.2% |
| Rolling stock leasing | 11.0 | 15.4 | 4.4 | +40.0% |
| Other revenues | 13.1 | 13.9 | 0.8 | +6.1% |
| Total revenues | 107.7 | 113.1 | 5.4 | +5.0% |
| Adj. EBITDA | 14.6 | 8.2 | (6.4) | -43.8% |
| Adj. EBITDA/Revenues % | 13.6% | 7.3% | ||
| EBIT | 12.9 | 6.6 | (6.3) | -48.8% |
| Ro.S.Co. & Services | ||||
|---|---|---|---|---|
| € mln | 9M 2022 | 9M 2023 | ∆€ | ∆% |
| Rolling stock leasing | 39.0 | 41.2 | 2.2 | +5.6% |
| Other revenues | 19.5 | 22.0 | 2.5 | +12.8% |
| Total revenues | 58.5 | 63.2 | 4.7 | +8.0% |
| - | ||||
| Adj. EBITDA | 32.2 | 33.9 | 1.7 | +5.3% |
| Adj. EBITDA/Revenues % | 55.0% | 53.6% | ||
| EBIT | 7.5 | 10.7 | 3.2 | +42.7% |
| Road passenger mobility | |||||
|---|---|---|---|---|---|
| € mln | 9M 2022 | 9M 2023 | ∆€ | ∆% | |
| Public contracts and grants | 42.4 | 36.0 | (6.4) | -15.1% | |
| Transport services | 48.5 | 36.8 | (11.7) | -24.1% | |
| Other revenues | 6.6 | 4.8 | (1.8) | -27.3% | |
| Total revenues | 97.5 | 77.6 | (19.9) | -20.4% | |
| Adj. EBITDA | 7.2 | 5.9 | (1.3) | -18.1% | |
| Adj. EBITDA/Revenues % | 7.4% | 7.6% | |||
| EBIT | (3.1) | (1.2) | 1.9 | n.m. |
FNM Group | Road passenger mobility (like-for-like basis1 )
| REPORTED PERIMETER | LA LINEA/MARTINI + car sharing public contribution |
LIKE-FOR-LIKE | |||||||
|---|---|---|---|---|---|---|---|---|---|
| € mln | 9M 2022 IQ 2022 |
9M 2023 | ∆€ | 9M 2022 | IQ 2023 9M 2023 |
∆€ | 9M 2022 | 9M 2023 | ∆€ ∆€ |
| Public contracts and grants | 42.4 0.4 |
36.0 | (6.4) | 0.4 | 0.1 0.1 |
(0.3) | 42.0 | 35.9 | (0.2) (6.1) |
| Transport services | 48.5 7.8 |
36.8 | (11.7) | 19.5 | 0.5 0.5 |
(19.0) | 29.0 | 36.3 | (7.3) 7.3 |
| Other revenues | 6.6 0.3 |
4.8 | (1.8) | 1.6 | 0.0 0.1 |
(1.5) | 5.0 | 4.7 | (0.3) (0.3) |
| Total revenues | 97.5 8.5 |
77.6 | (19.9) | 21.5 | 0.7 0.7 |
(20.8) | 76.0 | 76.9 | (7.8) 0.9 |
| Adj. EBITDA | - 1.4 7.2 |
5.9 | (1.3) | 3.9 | 0.3 0.3 |
(3.6) | 3.3 | 5.6 | (1.1) 2.3 |
FNM Group| Profit (Loss) of companies consolidated at equity
| €/000 | 9M 2022 | Il gruppo 9M 2023 |
in breve ∆€ |
|---|---|---|---|
| Trenord Srl* | (25.446) | (1.734) | 23.712 |
| Autostrada Pedemontana Lombarda | 1.198 | (963) | (2.161) |
| Tangenziali Esterne di Milano Spa** | (1.034) | (1.539) | (505) |
| Nord Energia Spa*** | 1.543 | 708 | (835) |
| DB Cargo Italia Srl | 1.333 | 1.576 | 243 |
| Omnibus Partecipazioni Srl**** | 809 | 133 | (676) |
| NordCom Spa | 448 | 455 | 7 |
| Busforfun.Com Srl | 119 | (447) | (566) |
| SportIT | (311) | (302) | 9 |
| Profit (Loss) of companies consolidated at equity | (21.342) | (2.113) | 19.228 |
* Including the Profit (Loss) of TILO SA
** Including the Profit (Loss of Tangenziale Esterna S.p.A.
- *** Including the Profit (Loss) of CMC MeSta SA
- **** Including the Profit (Loss) of ASF Autolinee Srl
FNM Group| Profit (Loss) of companies consolidated at equity – TRENORD
| € mln | 9M 2022 | 9M 2023 | ∆€ | ∆% |
|---|---|---|---|---|
| Ticketing revenues | 219.9 | 282.3 | 62.4 | +28.4% |
| Revenues from Service Agreement | 326.1 | 329.1 | 3.0 | +0.9% |
| Other revenues and income | 31.1 | 41.9 | 10.8 | +34.7% |
| Total revenues and other income | 577.1 | 653.3 | 76.2 | +13.2% |
| Operating costs | (299.2) | (300.0) | (0.8) | +0.3% |
| Personnel costs | (207.1) | (220.2) | (13.1) | +6.3% |
| EBITDA | 70.8 | 133.1 | 62.3 | +88.0% |
| Depreciation and amortization | (128.3) | (126.2) | 2.1 | -1.6% |
| EBIT | (57.5) | 6.9 | 64.4 | n.m. |
| Net financial income (expense) | (1.3) | (6.2) | (4.9) | +376.9% |
| EBT | (58.8) | 0.7 | 59.5 | n.m. |
| Income taxes | 7.8 | (1.8) | (9.6) | n.m. |
| Net Profit (Loss) | (51.0) | (1.1) | 49.9 | n.m. |
FNM Group| Profit (Loss) of companies consolidated at equity – APL
| € mln | 9M 2022 | 9M 2023 | ∆€ | ∆% |
|---|---|---|---|---|
| Toll revenues | 31.8 | 33.2 | 1.4 | +4.4% |
| Other revenues and income | 3.6 | 4.2 | 0.6 | +16.7% |
| Total revenues and other income | 35.4 | 37.4 | 2.0 | +5.6% |
| Operating costs | (12.5) | (12.5) | 0.0 | +0.0% |
| Personnel costs | (6.0) | (8.1) | (2.1) | +35.0% |
| EBITDA | 16.9 | 16.8 | (0.1) | -0.6% |
| Depreciation and amortization | (4.5) | (4.3) | 0.2 | -4.4% |
| EBIT | 12.4 | 12.5 | 0.1 | +0.8% |
| Net financial income (expense) | (15.0) | (20.7) | (5.7) | +38.0% |
| EBT | (2.6) | (8.2) | (5.6) | n.m. |
| Income taxes | (0.6) | (0.5) | 0.1 | -16.7% |
| Net Profit (Loss) | (3.2) | (8.7) | (5.5) | n.m. |
FNM Group| Consolidated Balance Sheet
| € mln | 30/09/2023 | 31/12/2022 | ∆€ |
|---|---|---|---|
| Inventories | 13.2 | 12.1 | 1.1 |
| Trade receivables | 171.0 | 153.0 | 18.0 |
| Other current receivables | 106.2 | 85.8 | 20.4 |
| Current financial receivables | 1.8 | 8.9 | (7.1) |
| Financed investment receivables | 55.5 | 47.6 | 7.9 |
| Trade payables | (168.5) | (166.6) | (1.9) |
| Other current payables and current provisions | (149.0) | (147.4) | (1.6) |
| Operating Net Working Capital | 30.2 | (6.6) | 36.8 |
| Other receivables - Rolling stock 2017-2032 |
35.6 | 64.0 | (28.4) |
| Financed investment receivables - Rolling stock 2017-2032 |
183.6 | 201.7 | (18.1) |
| Trade payables - Rolling stock 2017-2032 |
(272.5) | (304.1) | 31.6 |
| Net Working Capital for Financed Investments | (53.3) | (38.4) | (14.9) |
| Total Net Working Capital | (23.1) | (45.0) | 21.9 |
| Fixed assets | 820.8 | 840.8 | (20.0) |
| Equity interests | 166.6 | 171.8 | (5.2) |
| Non-current receivables | 178.0 | 175.1 | 2.9 |
| Non-current liabilities | (39.0) | (31.1) | (7.9) |
| Provisions | (98.4) | (95.0) | (3.4) |
| Assets (Liabilities) held for sale | 0.0 | 14.9 | (14.9) |
| NET INVESTED CAPITAL | 1,004.9 | 1,031.5 | (26.6) |
| - Equity |
- 351.1 |
- 306.9 |
- 44.2 |
| * Adjusted Net Financial Position |
711.9 | 766.9 | (55.0) |
| Net Financial Position for Funded Investments (Cash) | (58.1) | (42.3) | (15.8) |
| Net Financial Position | 653.8 | 724.6 | (70.8) |
| TOTAL SOURCES | 1,004.9 | 1,031.5 | (26.6) |
FNM Group| Consolidated Balance Sheet – NFP composition
| € mln | 30/09/2023 | 31/12/2022 | ∆€ |
|---|---|---|---|
| Cash and bank deposits | (232.6) | Il gruppo (194.6) |
in breve (38.0) |
| Current financial debt | 152.1 | 140.6 | 11.5 |
| Current Net Financial Position (Debt/-Cash) | (80.5) | (54.0) | (26.5) |
| Non-current financial debt | 792.4 | 820.9 | (28.5) |
| Adj. Net Financial Position | 711.9 | 766.9 | (55.0) |
| Net Financial Position for funded investments (Debt/-Cash) | (58.1) | (42.3) | (15.8) |
| * Net Financial Position |
653.8 | 724.6 | (70.8) |
| o/w IFRS 16 Leases | 22.6 | 25.8 | (3.2) |
FNM Group | Net CAPEX breakdown
| € mln | 9M 2022 | 9M 2023 | ∆€ |
|---|---|---|---|
| Motorways | 32.8 | Il gruppo 18.1 |
in breve (14.7) |
| Ro.S.Co. & Services | 49.9 | 11.8 | (38.1) |
| Railway infrastructure | 4.7 | 3.0 | (1.7) |
| Road passenger mobility | 18.1 | 19.4 | 1.3 |
| Gross CAPEX made by FNM | 105.5 | 52.3 | (53.2) |
| Railway infrastructure (managed only) | 34.5 | 111.7 | 77.2 |
| Total Gross CAPEX | 140.0 | 164.0 | 24.0 |
| Public contributions - Road passenger mobility |
0.7 | 4.1 | 3.4 |
| Public contributions - Railway infrastructure |
29.2 | 113.0 | 83.8 |
| Public contributions - Motorways |
0.0 | 8.9 | 8.9 |
| Net CAPEX | 110.1 | 38.0 | (72.1) |
FNM Group| Rolling Stock Purchase Programme 2017-2032
FNM Group| Glossary
- Adjusted EBITDA: it is represented by EBITDA (earnings for the year before income taxes, of the other financial income and expenses, of depreciation, amortization and impairments of fixed assets), excluding non-ordinary expenses and income, such as: (i) income and expenses deriving from restructuring, reorganization and business combination; (ii) clearly identified income/expenses not directly referred to the ordinary performance of the business; (iii) in addition to any income/expenses deriving from significant non-ordinary events and transactions as defined by Consob communication DEM6064293 of 28/07/2006.
- Adjusted EBITDA Margin: the percentage of Adjusted EBITDA over total revenues.
- Adjusted Net Result: Net Profit (Loss) before recognition of the result of companies consolidated using the equity method
- Adjusted NFP: it is represented by the Net Financial Position (NFP) including cash and cash equivalents and all financial liabilities, restated excluding only cash and current payables related to financial investments made in accordance with Regione Lombardia's "Rolling Stock purchase programme 2017-2032", with the aim of sterilizing the timing effects of contributions collection and payments made to suppliers, recognized in accordance with IFRIC 12.
- Rolling Stock Purchase Programme 2017-2032: 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 (see FNM 2022 Annual Report for further details).
- Gross CAPEX made by FNM: fixed asset and software additions, excluding investments on railway infrastructure managed on behalf on Regione Lombardia as by Programme Agreement. The balance between cash capital investments shown in the Financial Statements and Gross CAPEX is mainly represented by changes in account payables/advances to suppliers, which are reconciled under net working capital for purposes of this presentation.
- Net CAPEX: Gross CAPEX after deducting public contributions related to the acquired assets, including investments on railway infrastructure managed on behalf on Regione Lombardia as by Programme Agreement. Capital grants - received mainly from Regione Lombardia, Regione Veneto and Ministry of Transport (MIT) - typically relate to the funding of capital investments managed by the Group for third parties or in conjunction with regulated activities. These cash flows are classified as investing activities, and accordingly reduce the overall cash outflow.
Contacts
Valeria Minazzi Investor Relations Director Fixed line: +39 02 8511 4302 [email protected] [email protected]
