Fnm — Investor Presentation 2023

May 12, 2023

FNM Group IQ 2023 RESULTS

12 May 2023

FNM Group| Overview

panies fully consolidated		Companies value
FNM: ta in movimento	100%	ATRENORD $\rightarrow \bar{\pi}$ no
LFNMPAY FNMGROUP	100%	BUSFORFUNE $\mathbf{B}$ cnortit?

NM novimento NMPAY MGROUP NMPOWER MGROUP	100% 100% 100%	, , , , , , , , , , , , $\rightarrow \bar{m}$ $\overline{2}$ BUSFORFUNE $\bullet$ sportit 2 DB Cargo Italia 3 N NORDCOM	50% 40% 33% 40% 58%
RROVIENORD GROUP NORD_ING LPENSA $^3$ ERMODALE HOUP LPENSA $^3$ TRIPARK SROUP	100% 100% 100% 100%
MAUTOSERVIZI ROUP ieticale scow fr newsjel NEA SO ⋗	100% 50% 50.3% 100%	Omnibus Partecipazioni 4 $\Rightarrow$ AIF	50%
rravalle igenziali - - ------------------------------------	100% 100%	Autostrada Pedemontana Lombarda Tangenziali Esterne di Milano tangenziale $\rightarrow$ esterna	36.7% 22.5%

1 – Include also Nord Energia, currently under liquidation included in Ro.S.Co. & Services segment 2– Companies managing complementary digital platforms, allowing the implementation of Mobility as a Community (MaaC) paradigm. Sportit is active under the brads Snowit and Bikeit. 3 – Companies operating in the freight mobility and logistics sector, at present included respectively in the Railway Infrastructure and Ro.S.Co. & Services segments. Malpensa Distripark is in a start-up phase. 4 – Company operating in Road Passenger Mobility but considered in the Ro.S.Co. & Services segment for the purposes of preparing the financial statements.

Overview

Economic & Financial Results

• Financial highlights
• Mobility demand in the period
• IQ 2023 consolidated results

Outlook

Appendix

FNM Group| IQ 2023 Financial Highlights

FNM Group | Mobility demand in the period

Recovery of demand across all segments: Motorways in line with 2019, but LPT still below pre-pandemic levels

EBITDA growth underpinned by traffic recovery and new TILO trains, despite negative effect of the sale of La Linea/Martini and the loss of public contribution on car sharing

REVENUES (€ mln)	IQ 2022	IQ 2023	∆€	∆%
Ro.S.Co. & Services	18.8	20.8	2.0	+10.6%
Railway infrastructure	33.2	37.1	3.9	+11.7%
Road passenger mobility	33.5	25.7	(7.8)	-23.3%
Motorways	60.6	66.9	6.3	+10.4%
Intercompany	(9.5)	(6.8)	2.7	n.m.
Total	136.6	143.7	7.1	+5.2%
Adj. EBITDA (€ mln)	IQ 2022	IQ 2023	∆€	∆%
Ro.S.Co. & Services	11.0	12.1	1.1
Railway infrastructure	2.6	0.9	(1.7)
Road passenger mobility	0.7	1.3	0.6
Motorways	30.1	32.3	2.2	+10.0% -65.4% +85.7% +7.3%

REPORTED					LIKE-FOR-LIKE1
IQ 2022	IQ 2023	∆€	∆%	REVENUES (€ mln)	IQ 2022	IQ 2023	∆€
18.8	20.8	2.0	+10.6%	Ro.S.Co. & Services	18.8	20.8	2.0
33.2	37.1	3.9	+11.7%	Railway infrastructure	33.2	37.1	3.9
33.5	25.7	(7.8)	-23.3%	Road passenger mobility	24.5	25.0	0.5
60.6	66.9	6.3	+10.4%	Motorways	60.6	66.9	6.3
(9.5)	(6.8)	2.7	n.m.	Intercompany	(5.6)	(6.6)	(1.0)
136.6	143.7	7.1	+5.2%	Total	131.5	143.2	11.7
IQ 2022	IQ 2023	∆€	∆%	Adj. EBITDA (€ mln)	IQ 2022	IQ 2023	∆€
11.0	12.1	1.1	+10.0%	Ro.S.Co. & Services	11.0	12.1	1.1
	0.9	(1.7)	-65.4%	Railway infrastructure	2.6	0.9	(1.7)
	1.3	0.6	+85.7%	Road passenger mobility	(1.2)	1.0	2.2
2.6 0.7 30.1	32.3	2.2	+7.3%	Motorways	30.1	32.3	2.2

• Higher revenues from public contracts and grants as a result of:
• − higher track access charges due to rising energy prices,
• − higher revenues from service and design activities linked to the progress of work orders on the infrastructure,
• − lower fees from Public Service Contract (new PSC structure from January 2023) and Purchase Agreement due to lower deliveries of
• Higher leasing revenues on the rolling stock given in use to Trenord and managed by Ferrovienord in line with expansion of the fleet
• More than proportional increase in costs for infrastructure maintenance and design activities, also due to advance payments on operating machines and signaling equipment
• Higher provisions for rolling stock fleet maintenance and energy traction expenses in line with revenues
• Higher operating costs: personnel costs due to headcount increase (+18 FTE) and utilities due to new supply contract with higher prices

Road passenger mobility

Performance mainly linked to the deconsolidation of La Linea/Martini from January 16th 2023 and the loss of car sharing contribution in IQ2023

Net of those effects, the main performance drivers are:

• Revenues:
• higher transport services revenues thanks to higher passengers transported and train replacement services
• lower revenues from public contracts and grants due to lower compensations for additional services (none vs €2.9mln in IQ2022), partially compensated by higher €/km recognized by Regione Veneto and contributions to cover energy price increases
• No Government compensations for lost revenues booked in IQ23 and IQ22
• EBITDA improvement as a result of better marginality

FNM Group | Trenord: IQ 2023 Highlights

Traffic recovery continues to drive improvement in operating performance

€ mln	IQ 2022	IQ 2023	∆€	∆%
Revenues	176.0	212.1	36.1	+20.5%
Ticketing revenues	59.3	86.4	27.1	+45.7%
Revenues from Service Agreement	106.9	114.0	7.1	+6.6%
Other revenues	9.8	11.7	1.9	+19.4%
EBITDA	10.5	30.6	20.1	+191.4%
EBIT	(31.7)	(11.7)	20.0	n.m.
Net Result	(31.4)	(12.0)	19.4	n.m.

• Increase in revenues thanks to:
• higher ticketing revenues mainly as a result of recovery in passenger volume and tariff increase from September 2022/January 2023
• higher revenues from service agreement following the increase in recognized costs
• increase in other revenues following the increase in services to third parties
• Increase in EBITDA thanks to higher revenues partially offset by higher personnel (+166 FTE), energy/network access and operating costs
• EBIT, although improving, is still negative amid substantially stable depreciation and amortization charges
• Net Loss in IQ 2023 in line with operating performance, compensated by higher interest expenses and deferred tax assets accrued in the period

FNM Group | APL: IQ 2023 Highlights

Positive operating performance thanks to growth of traffic volumes, net result still impacted by financial charges

€ mln	IQ 2022	IQ 2023	∆€	∆%
Revenues	10.8	11.8	1.0	+9.3%
Toll revenues	9.6	10.4	0.8	+8.7%
Other revenues	1.2	1.4	0.2	+13.6%
EBITDA	4.8	5.1	0.4	+8.2%
EBIT	3.3	3.7	0.4	+10.6%
Net Result	(1.5)	(3.8)	(2.3)	n.m.

• Increase in revenues thanks to traffic growth above pre-Covid levels without increase in tariffs
• Improvement in EBITDA benefits from higher revenues
• EBIT improves in line with EBITDA due to lower financial depreciation charges compensated by higher net provisions
• 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

Positive consolidated net result thanks to positive operating income performance and improved result of companies consolidated at equity

FNM Group | IQ 2023 Capex analysis

Higher investments vs IQ2022

€ mln	IQ 2022	IQ 2023	∆€
Ro.S.Co. & Services	1.0	Il gruppo 3.3	in breve 2.3
Railway infrastructure	0.7	0.7	0.0
Road passenger mobility	3.5	6.3	2.8
Motorways	10.2	9.5	(0.7)
Gross CAPEX financed by FNM Group	15.4	19.8	4.4
Railway infrastructure CAPEX financed by RL	8.7	28.0	19.3
Total CAPEX gross of public contributions	24.1	47.8	23.7
Public contributions - Road passenger mobility	-	2.3	2.3
Public contributions - Railway infrastructure	1.4	21.6	20.2
Public contributions - Motorways	-	8.9	8.9
Total CAPEX net of public contributions	22.7	15.0	(7.7)

FNM Group| Consolidated Cash Flow

Positive cash flow generation and sale of La Linea/Martini 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 31st March 2023

1 – Excluding debt for funded investments for €52.7 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. Exclude payable for funded investments on Rolling Stock Purchase Programme 2017-2032 for €0.4mln which are included in "IFRIC 12 effect on cash balances"

FNM Group | Maturity structure at 31st March 2023

Debt average life 3.4 years, in line with total assets structure

Overview

Economic & Financial Results

• Financial highlights
• Mobility demand in the period
• IQ 2023 consolidated results

Sustainability Outlook

Appendix

FNM Group| FY 2023 Outlook

Guidance confirmed: results expected to improve

2 2	Revenues	+1% - 5% YoY +2% - 7% excluding La Linea/Martini Bus and €1.8 mln contribution to E-Vai
Y F s v 3 2	Adj. EBITDA	+1% - 5% YoY +2% - 7% excluding La Linea/Martini Bus and €1.8 mln contribution to E-Vai
Y F s t e g	Adj. EBITDA Margin	In line with 2022
r a T al ci n a	Adj. NFP	€700-750 mln, within rating agencies requirements Gross CAPEX with FNM funds -10% / -20% YoY
n Fi	Adj. NFP / EBITDA	3.5x – 4.0x

Overview

Economic & Financial Results

• Financial highlights
• Mobility demand in the period
• IQ 2023 consolidated results

Outlook

Appendix

FNM Group| Shareholders and share performance

Relative performance YTD vs. main reference indexes

Share price @ {11-mag-23}: €{0,44}

Share capital profile		Shareholders' structure
Market capitalization @ 11-mag-23 : { }	€ 190,5 mln { }	27.7% Regione Lombardia
N. of shares Average traded volumes (last 30 days)	434.9 mln 217.385 orders { }	Ferrovie dello Stato 57.6% Market
Share price change	3,2 % YTD { }	14.7%

FNM Group| Consolidated Profit & Loss

€ mln	IQ 2022	IQ 2023	∆€	∆%
Revenues from sales and servives	129.0	135.6	6.6	+5.1%
Other revenues and income	7.6	8.1	0.5	+6.6%
Total revenues and other income	136.6	143.7	7.1	+5.2%
Operating costs	(52.0)	(57.6)	(5.6)	+10.8%
Personnel costs	(40.2)	(39.5)	0.7	-1.7%
Adj. EBITDA	44.4	46.6	2.2	+5.0%
Non-ordinary income (expense)	0.0	0.0	0.0	n.m.
EBITDA	44.4	46.6	2.2	+5.0%
Depreciation and amortization	(21.2)	(25.4)	(4.2)	+19.8%
EBIT	23.2	21.2	(2.0)	-8.6%
Net financial income (expense)	(2.4)	(3.3)	(0.9)	+37.5%
EBT	20.8	17.9	(2.9)	-13.9%
Income taxes	(5.3)	(2.0)	3.3	-62.3%
Adj. Net Profit (Loss)	15.5	15.9	0.4	+2.6%
Profit (Loss) of companies consolidated at equity	(13.2)	(5.9)	7.3	n.m.
Net Profit (Loss)	2.3	10.0	7.7	n.m.
Minority interest in Net Profit (Loss)	(0.7)	(0.2)	0.5	n.m.
Group Net Profit (Loss)	3.0	10.2	7.2	n.m.

FNM Group| Consolidated Profit & Loss – SEGMENT DETAILS

Ro.S.Co. & Services
€ mln	IQ 2022	IQ 2023	∆€	∆%
Rolling stock leasing	12.4	13.5	1.1	+8.9%
Other revenues	6.4	7.3	0.9	+14.1%
Total revenues	18.8	20.8	2.0	+10.6%
Adj. EBITDA	11.0	12.1	1.1	+9.6%
Adj. EBITDA/Revenues %	58.7%	58.2%
EBIT	4.1	4.5	0.4	+9.5%

€ mln	IQ 2022	IQ 2023	∆€	∆%
Public contracts and grants	15.1	13.0	(2.1)	-13.9%
Transport services	16.6	11.4	(5.2)	-31.3%
Other revenues	1.8	1.3	(0.5)	-27.8%
Total revenues	33.5	25.7	(7.8)	-23.3%
Adj. EBITDA	0.7	1.3	0.6	+76.6%
Adj. EBITDA/Revenues %	2.2%	5.1%
EBIT	(1.4)	(0.8)	0.6	n.m.

Ro.S.Co. & Services					Railway infrastructure
IQ 2022	IQ 2023	∆€	∆%	€ mln	IQ 2022	IQ 2023	∆€	∆%
12.4	13.5	1.1	+8.9%	Public contracts and grants Rolling stock leasing	26.1 3.4	28.4 4.8	2,3 1.4	+8,8% +41.2%
6.4 18.8	7.3 20.8	0.9 2.0	+14.1% +10.6%	Other revenues	3.7	3.9	0.2	+5.4%
11.0	12.1	1.1	+9.6%	Total revenues Adj. EBITDA	33.2 2.6	37.1 0.9	3.9 (1.7)	+11.7% -65.4%
58.7%	58.2%			Adj. EBITDA/Revenues %	7.8%	2.4%
				EBIT	2,0	0,4	(1,6)	-80,0%
Road passenger mobility					Motorways

€ mln	IQ 2022	IQ 2023	∆€	∆%
Toll revenues	56.3	61.4	5.1	+9.1%
Other revenues	4.3	5.5	1.2	+27.9%
Total revenues	60.6	66.9	6.3	+10.4%
Adj. EBITDA	30.1	32.3	2.2	+7.3%
Adj. EBITDA/Revenues %	49.7%	48.3%
EBIT	18.5	17.1	(1.4)	-7.6%

FNM Group | Road passenger mobility (like-for-like basis¹ )

	LA LINEA/MARTINI + REPORTED PERIMETER car sharing public contribution				LIKE-FOR-LIKE
€ mln	IQ 2022	IQ 2023	∆€	IQ 2022	IQ 2023 IQ 2023	∆€	IQ 2022	IQ 2023	∆€ ∆€
Public contracts and grants	15.1 0.4	13.0	(2,1)	0.9	0.1 0.1	(0,7)	14.2	12.9	(0.2) (1.3)
Transport services	16.6 7.8	11.4	(5,2)	7.8	0.5 0.5	(7,3)	8.8	10.9	(7.3) 2.1
Other revenues	0.3 1.8	1.3	(0,5)	0.3	0.0 0.0	(0,3)	1.5	1.2	(0.3) (0.3)
Total revenues	33.5 8.5	25.7	(7,8)	9.0	0.7 0.6	(8,4)	24.5	25.0	(7.8) 0.5
Adj. EBITDA	1.4 0.7	1.3	0,6	1.9	0.3 0.3	(1,6)	(1.2)	1.0	(1.1) 2.2

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

€/000	IQ 2022	Il gruppo IQ 2023	in breve ∆€
Trenord Srl*	(15.680)	(6.019)	9.661
Autostrada Pedemontana Lombarda	561	(728)	(1.289)
Tangenziali Esterne di Milano Spa	-0	(538)	(538)
Nord Energia Spa**	705	745	40
DB Cargo Italia Srl	812	785	(27)
Omnibus Partecipazioni Srl***	335	(77)	(412)
NordCom Spa	128	111	(17)
Busforfun.Com Srl	(10)	(16)	(6)
SportIT	(37)	(130)	(93)
Profit (Loss) of companies consolidated at equity	(13.186)	(5.867)	7.319

* 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	31/03/2023	31/12/2022	∆€
Inventories	12.1	12.1	0.0
Trade receivables	167.3	153.0	14.3
Other current receivables	92.5	85.8	6.7
Current financial assets	9.0	8.9	0.1
Financed investment receivables	52.7	47.6	5.1
Trade payables	(159.6)	(166.6)	7.0
Other current payables and current provisions	(159.8)	(147.4)	(12.4)
Operating Net Working Capital	14.2	(6.6)	20.8
Other receivables - Rolling stock 2017-2032	55.4	64.0	(8.6)
Financed investment receivables - Rolling stock 2017-2032	191.2	201.7	(10.5)
Trade payables - Rolling stock 2017-2032	(307.0)	(304.1)	(2.9)
Net Working Capital for Financed Investments	(60.4)	(38.4)	(22.0)
Total Net Working Capital	(46.2)	(45.0)	(1.2)
Fixed assets	834.4	840.8	(6.4)
Equity interests	166.0	171.8	(5.8)
Non-current receivables	172.6	175.1	(2.5)
Non-current liabilities	(33.1)	(31.1)	(2.0)
Provisions	(90.7)	(95.0)	4.3
Assets (Liabilities) held for sale	0.0	14.9	(14.9)
NET INVESTED CAPITAL	1,003.0	1,031.5	(28.5)
- Equity	- 315.3	- 306.9	- 8.4
* Adjusted Net Financial Position	750.9	766.9	(16.0)
Net Financial Position for Funded Investments (Cash)	(63.2)	(42.3)	(20.9)
Net Financial Position	687.7	724.6	(36.9)
TOTAL SOURCES	1,003.0	1,031.5	(28.5)

FNM Group| Consolidated Balance Sheet – NFP composition

€ mln	31/03/2023	31/12/2022	∆€
Cash and bank deposits	(209.7)	Il gruppo (194.6)	in breve (15.1)
Current financial debt	143.8	140.6	3.2
Current Net Financial Position (Debt/-Cash)	(65.9)	(54.0)	(11.9)
Non-current financial debt	816.8	820.9	(4.1)
Adj. Net Financial Position	750.9	766.9	(16.0)
Net Financial Position for funded investments (Debt/-Cash)	(63.2)	(42.3)	(20.9)
* Net Financial Position	687.7	724.6	(36.9)
o/w IFRS 16 Leases	25.1	29.2	(4.1)

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).

Contacts

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