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Fnm Investor Presentation 2024
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Investor Presentation
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FNM Group IQ 2024 RESULTS
15 May 2024
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 its real estate assets 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 |
|
| Road Passenger Mobility |
LPT road transport in Lombardy (Province of Varese, Brescia and Como) and Veneto (Province of Verona) Train replacementservices for Trenord Electric car-sharing service |
723 Buses into service |
|
| Energy | Renewable energy production with 25 already operational plants Multiple initiatives for photovoltaic and wind power plants in different stages of implementation Structure with established expertise capable of managing all major stages of the value chain |
47 MW Installed capacity |
Key investments in Associates and Joint Ventures
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., and dicrectly 0.386% of the concessionaire. 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
Outlook
Appendix
IQ 2024 Financial Highlights – REPORTED1
1 – Including the effects of the consolidation of Viridis and its subsidiaries from 23 February 2024. Pro forma figures, including the effects of Viridis results fully consolidated as if the company had been acquired since January 1, 2023, are provided on slide 25.
Motorways - traffic trend on MISE network (vehicles-km)
Traffic performance benefits from the adjustment of the conventional mileage of the Northern Ring Road from March 2023
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, especially for urban transportation
Renewable energy production
Commissioning of 2 solar-PV plants from Dec.'23 drives production up despite low irradiance and full capacity only from March '24
Adj. EBITDA evolution
Growth driven by good performance of motorways and Viridis acquisition
| Adj. EBITDA (€ mln) | IQ 2023 | IQ 2024 | ∆€ | ∆% |
|---|---|---|---|---|
| Motorways | 32.3 | 36.0 | 3.7 | +11.5% |
| Ro.S.Co. & Services | 12.1 | 9.2 | (2.9) | -24.0% |
| Railway infrastructure | 0.9 | 0.8 | (0.1) | -11.1% |
| Road passenger mobility | 1.3 | 1.5 | 0.2 | +15.4% |
| Energy | 0.0 | 1.1 | 1.1 | n.m. |
| Total | 46.6 | 48.6 | 2.0 | +4.3% |
| PRO FORMA1 | ||||||
|---|---|---|---|---|---|---|
| Adj. EBITDA (€ mln) | IQ 2023 | IQ 2024 | ∆€ | ∆% | ||
| Motorways | 32.3 | 36.0 | 3.7 | +11.5% | ||
| Ro.S.Co. & Services | 12.1 | 9.2 | (2.9) | -24.0% | ||
| Railway infrastructure | 0.9 | 0.8 | (0.1) | -11.1% | ||
| Road passenger mobility | 1.3 | 1.5 | 0.2 | +15.4% | ||
| Energy | 2.5 | 2.1 | (0.4) | -16.0% | ||
| Total | 49.1 | 49.6 | 0.5 | +1.0% |
1 – Considering the consolidation of Viridis from 1 January 2024. The 1Q 2023 was similarly pro-formed as if the consolidation of Viridis had occurred on 1 January 2023
Adj. EBITDA by segment – Motorways
Adj. EBITDA by segment – Ro.S.Co. & Services
Adj. EBITDA by segment – Railway infrastructure
% = EBITDA Margin 12
Adj. EBITDA by segment – Road passenger mobility
Associates & JV – Trenord
Associates & JV – APL
Traffic and tariff increase support operating performance, bottom line still impacted by net interest expenses
- Net financial charges (€6.4mln in IQ2024):
- are mainly represented by non-utilization fees on Senior Loan 1 with a negative impact on APL net result, no contribution to operating margins
- are expected to be partially capitalized with the start of works on sections B2 and C, with a consequent positive effect on the net result
- In 21 March 2024 CIPESS expressed positive opinion on the revision of the EFP which takes into account higher construction costs and rise in interest rates
IQ 2024 Capex analysis
Investments mainly driven by rescheduling of works on motorway and delay in rolling stock deliveries/revamping of TAF trains
| € mln | IQ 2023 | IQ 2024 | ∆€ | |
|---|---|---|---|---|
| Motorways | 9.5 | 1.3 | (8.2) | |
| Ro.S.Co. & Services | 3.3 | 2.4 | (0.9) | |
| Railway infrastructure | 0.7 | 1.2 | 0.5 | |
| Road passenger mobility | 6.3 | 1.1 | (5.2) | |
| Energy | 0.0 | 1.5 | 1.5 | |
| Gross CAPEX made by FNM Group | 19.8 | 7.5 | (12.3) |
Consolidated Cash Flow
Cash flow impacted by Viridis acquisition and changes in NWC , mainly due to seasonality on crediting of grants on railway infrastructure
* Include: (i) positive ∆NWC from operations for €3.8mln, (ii) negative ∆NWC from investments with own funds for €8.2mln and (iii) negative ∆NWC from investments in railway infrastructure for €22.5mln
Net Financial Position evolution
Adj. NFP impacted by Viridis acquisition and accounting of the related non-monetary financial debt
1 – Fully available, intended only for the purchase of trains related to the "2017-2032 Rolling Stock Purchase Programme".
Gross debt composition at 31 March 2024
1 – Excluding debt for funded investments for €87.7 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
Maturity structure at 31 March 2024
Debt average life 2.6 years, in line with total assets structure
Overview
Economic & Financial Results
Outlook
Appendix
FY 2024 Outlook
Guidance confirmed: investments expected to accelerate driven mainly by motorway and renewable energy generation
Overview
Economic & Financial Results
Outlook
Appendix
Consolidated Profit & Loss – REPORTED
| EMARKET SDIR |
|---|
| CERTIFIED |
| € mln | IQ 2023 | IQ 2024 | ∆€ | ∆% |
|---|---|---|---|---|
| Revenues from sales and services | 135.6 | 134.3 | (1.3) | -1.0% |
| Other revenues and income | 8.1 | 9.4 | 1.3 | +16.0% |
| Total revenues and other income | 143.7 | 143.7 | — | —% |
| Operating costs | (57.6) | (53.2) | 4.4 | -7.6% |
| Personnel costs | (39.5) | (41.9) | (2.4) | +6.1% |
| Adj. EBITDA | 46.6 | 48.6 | 2.0 | +4.3% |
| Non-ordinary income (expense) | — | (0.8) | (0.8) | —% |
| EBITDA | 46.6 | 47.8 | 1.2 | +2.6% |
| Depreciation and amortization | (25.4) | (31.3) | (5.9) | +23.2% |
| EBIT | 21.2 | 16.5 | (4.7) | -22.2% |
| Net financial income (expense) | (3.3) | (2.4) | 0.9 | -27.3% |
| EBT | 17.9 | 14.1 | (3.8) | -21.2% |
| Income taxes | (2.0) | (4.3) | (2.3) | n.d. |
| Adj. Net Profit (Loss) | 15.9 | 9.8 | (6.1) | -38.4% |
| Profit (Loss) of companies consolidated at equity | (5.9) | 3.3 | 9.2 | n.d. |
| Net Profit (Loss) | 10.0 | 13.1 | 3.1 | +31.0% |
| Minority interest in Net Profit (Loss) | (0.2) | (0.4) | (0.2) | n.d. |
| Group Net Profit (Loss) | 10.2 | 13.5 | 3.3 | +32.4% |
Consolidated Profit & Loss – PRO FORMA
| € mln | IQ 2023 | IQ 2024 | ∆€ | ∆% |
|---|---|---|---|---|
| Revenues from sales and services | 137.7 | 135.7 | (2.0) | -1.5% |
| Other revenues and income | 10.4 | 10.4 | — | —% |
| Total revenues and other income | 148.1 | 146.1 | (2.0) | -1.4% |
| Operating costs | (59.1) | (54.3) | 4.8 | -8.1% |
| Personnel costs | (39.9) | (42.2) | (2.3) | +5.8% |
| Adj. EBITDA | 49.1 | 49.6 | 0.5 | +1.0% |
| Non-ordinary income (expense) | — | (0.8) | (0.8) | - |
| EBITDA | 49.1 | 48.8 | (0.3) | -0.6% |
| Depreciation and amortization | (27.3) | (32.4) | (5.1) | +18.7% |
| EBIT | 21.8 | 16.4 | (5.4) | -24.8% |
| Net financial income (expense) | (3.9) | (1.0) | 2.9 | -74.4% |
| EBT | 17.9 | 15.4 | (2.5) | -14.0% |
| Income taxes | (2.0) | (4.3) | (2.3) | n.s. |
| Adj. Net Profit (Loss) | 15.9 | 11.1 | (4.8) | -30.2% |
| Profit (Loss) of companies consolidated at equity | (5.9) | 3.3 | 9.2 | n.s. |
| Net Profit (Loss) | 10.0 | 14.4 | 4.4 | +44.0% |
| Minority interest in Net Profit (Loss) | (0.2) | (0.1) | 0.1 | -50.0% |
| Group Net Profit (Loss) | 10.2 | 14.5 | 4.3 | +42.2% |
Segment details – Motorways
| € mln | IQ 2023 | IQ 2024 | ∆€ | ∆% |
|---|---|---|---|---|
| Toll revenues | 61.4 | 65.0 | 3.6 | +5.9% |
| Other revenues | 5.5 | 5.9 | 0.4 | +7.3% |
| Total revenues | 66.9 | 70.9 | 4.0 | +6.0% |
| Adj. EBITDA | 32.3 | 36.0 | 3.7 | +11.5% |
| Adj. EBITDA/Revenues % | 48.3 % |
50.8 % |
||
| EBIT | 17.1 | 16.2 | (0.9) | -5.3% |
Segment details – Ro.S.Co. & Services
| € mln | IQ 2023 | IQ 2024 | ∆€ | ∆% |
|---|---|---|---|---|
| Rolling stock leasing | 13.5 | 11.5 | (2.0) | -14.8% |
| Other revenues | 7.3 | 7.4 | 0.1 | +1.4% |
| Total revenues | 20.8 | 18.9 | (1.9) | -9.1% |
| Adj. EBITDA | 12.1 | 9.2 | (2.9) | -24.0% |
| Adj. EBITDA/Revenues % | 58.2 % |
48.7 % |
||
| EBIT | 4.5 | 0.7 | (3.8) | -84.4% |
Segment details – Railway infrastructure
| € mln | IQ 2023 | IQ 2024 | ∆€ | ∆% |
|---|---|---|---|---|
| Public contracts and grants |
22.2 | 21.6 | (0.6) | -2.7 % |
| Track access |
6.2 | 6.7 | 0.5 | +8.1% |
| Rolling stock leasing |
4.8 | - | (4.8) | n.m. |
| Other revenues |
3.9 | 3.8 | (0.1) | -2.6 % |
| Total revenues | 37.1 | 32.1 | (5.0) | -13.5 % |
| Adj. EBITDA | 0.9 | 0.8 | (0.1) | -11.1 % |
| Adj. EBITDA/Revenues % | 2.4 % |
2.5 % |
||
| EBIT | 0.4 | 0.3 | (0.1) | -25.0 % |
Segment details – Road passenger mobility
| EMARKE SDIR |
|---|
| CERTIFIED |
| € mln | IQ 2023 | IQ 2024 | ∆€ | ∆% |
|---|---|---|---|---|
| Public contracts and grants | 13.0 | 12.4 | (0.6) | -4.6% |
| Transport services | 11.4 | 12.9 | 1.5 | +13.2% |
| Other revenues | 1.3 | 1.7 | 0.4 | +30.8 % |
| Total revenues | 25.7 | 27.0 | 1.3 | +5.1 % |
| Adj. EBITDA | 1.3 | 1.5 | 0.2 | +15.4 % |
| Adj. EBITDA/Revenues % | 5.1 % |
5.6 % | ||
| EBIT | (0.8) | (1.0) | (0.2) | n.m. |
Segment details – Energy
| € mln | IQ 2023 PROFORMA |
IQ 2024 PROFORMA |
∆€ | ∆% |
|---|---|---|---|---|
| Revenues from sale of energy | 2.3 | 2.1 | 0.2 | +9.5 % |
| Other revenues | 1.7 | 2.3 | (0.6) | -26.1 % |
| Total revenues | 4.0 | 4.4 | (0.4) | -9.1 % |
| Adj. EBITDA | 2.1 | 2.5 | (0.4) | -16.0 % |
| Adj. EBITDA/Revenues % | 52.5 % |
56.8 % | ||
| EBIT | 0.2 | 0.6 | (0.4) | -66.7 % |
Profit (Loss) of companies consolidated at equity
| €/000 | IQ 2023 | IQ 2024 | ∆€ |
|---|---|---|---|
| Trenord S.r.l. * | (6,019) | 2,879 | 8,898 |
| Autostrada Pedemontana Lombarda | (728) | (188) | 540 |
| Tangenziali Esterne di Milano S.p.A. ** |
(538) | (563) | (25) |
| NORD ENERGIA S.p.A. | 745 | 925 | 180 |
| DB Cargo Italia S.r.l. | 785 | 189 | (596) |
| Omnibus Partecipazioni S.r.l. *** | (77) | 104 | 181 |
| NordCom S.p.A. | 111 | 52 | (59) |
| Busforfun.Com S.r.l. | (16) | — | 16 |
| Mbility S.r.l. | — | (25) | (25) |
| SportIT | (130) | (67) | 63 |
| Profit (Loss) of companies consolidated at equity | (5,867) | 3,306 | 9,173 |
* Including the Profit (Loss) of TILO SA
** Including the Profit (Loss of Tangenziale Esterna S.p.A.
*** Including the Profit (Loss) of ASF Autolinee Srl
Profit (Loss) of companies consolidated at equity – TRENORD
| € mln | IQ 2023 | IQ 2024 | ∆€ | ∆% |
|---|---|---|---|---|
| Ticketing revenues | 86.4 | 94.5 | 8.1 | +9.4% |
| Revenues from Service Agreement | 114.0 | 125.6 | 11.6 | +10.2% |
| Other revenues and income | 11.7 | 12.0 | 0.3 | +2.6% |
| Total revenues and other income | 212.1 | 232.1 | 20.0 | +9.4% |
| Operating costs | (109.2) | (111.0) | (1.8) | +1.6% |
| Personnel costs | (72.3) | (77.4) | (5.1) | +7.1% |
| EBITDA | 30.6 | 43.8 | 13.2 | +42.8% |
| Depreciation and amortization | (42.2) | (30.8) | 11.4 | -27.0% |
| EBIT | (11.7) | 13.0 | 24.7 | n.d. |
| Net financial income (expense) | (1.8) | (4.0) | (2.2) | n.d. |
| EBT | (13.5) | 9.0 | 22.5 | n.d. |
| Income taxes | 1.4 | (3.2) | (4.6) | n.d. |
| Net Profit (Loss) | (12.0) | 5.8 | 17.8 | n.d. |
Profit (Loss) of companies consolidated at equity – APL
| € mln | IQ 2023 | IQ 2024 | ∆€ | ∆% |
|---|---|---|---|---|
| Toll revenues | 10.4 | 10.8 | 0.4 | +3.8% |
| Other revenues and income | 1.4 | 1.3 | (0.1) | -7.1% |
| Total revenues and other income | 11.8 | 12.1 | 0.3 | +2.5% |
| Operating costs | (4.2) | (3.8) | 0.4 | -9.5% |
| Personnel costs | (2.5) | (3.0) | (0.5) | +20.0% |
| EBITDA | 5.1 | 5.3 | 0.2 | +3.9% |
| Depreciation and amortization | (1.4) | (1.5) | (0.1) | +7.1% |
| EBIT | 3.7 | 3.8 | 0.1 | +2.7% |
| Net financial income (expense) | (7.3) | (6.4) | 0.9 | -12.3% |
| EBT | (3.6) | (2.6) | 1.0 | n.m. |
| Income taxes | (0.2) | (0.2) | — | —% |
| Net Profit (Loss) | (3.8) | (2.8) | 1.0 | n.m. |
Consolidated Balance Sheet
| € mln | 31/03/2024 | 31/12/2023 | ∆€ |
|---|---|---|---|
| Inventories | 16.9 | 13.4 | 3.5 |
| Trade receivables | 166.6 | 171.0 | (4.4) |
| Other current receivables | 111.8 | 95.9 | 15.9 |
| Current financial receivables | 1.7 | 3.3 | (1.6) |
| Financed investment receivables | 62.9 | 49.2 | 13.7 |
| Contractual assets | 13.0 | 10.2 | 2.8 |
| Trade payables | (196.8) | (220.2) | 23.4 |
| Other current payables and current provisions | (165.6) | (152.1) | (13.5) |
| Operating Net Working Capital | 10.5 | (29.3) | 39.8 |
| Other receivables - Rolling stock 2017-2032 |
26.8 | 41.2 | (14.4) |
| Financed investment receivables - Rolling stock 2017-2032 |
166.5 | 161.6 | 4.9 |
| Trade payables - Rolling stock 2017-2032 |
(275.6) | (293.5) | 17.9 |
| Net Working Capital for Financed Investments | (82.3) | (90.7) | 8.4 |
| Total Net Working Capital | (71.8) | (120.0) | 48.2 |
| Fixed assets | 988.1 | 808.5 | 179.6 |
| Equity interests | 177.0 | 173.7 | 3.3 |
| Non-current receivables | 131.6 | 189.3 | (57.7) |
| Non-current liabilities | (35.8) | (36.7) | 0.9 |
| Provisions | (84.5) | (88.8) | 4.3 |
| Assets (Liabilities) held for sale | — | — | — |
| NET INVESTED CAPITAL | 1,104.6 | 926.0 | 178.6 |
| Equity | 364.0 | 376.2 | (12.2) |
| Adjusted Net Financial Position | 826.7 | 642.8 | 183.9 |
| Net Financial Position for Funded Investments (Cash) | (86.1) | (93.0) | 6.9 |
| Net Financial Position | 740.6 | 549.8 | 190.8 |
| TOTAL SOURCES | 1,104.6 | 926.0 | 178.6 |
Consolidated Balance Sheet – NFP composition
| € mln | 31/03/2024 | 31/12/2023 | ∆€ |
|---|---|---|---|
| Cash and bank deposits | (310.5) | (302.3) | (8.2) |
| Current financial debt | 265.1 | 178.0 | 87.1 |
| Current Net Financial Position (Debt/-Cash) | (45.4) | (124.3) | 78.9 |
| Non-current financial debt | 872.1 | 767.1 | 105.0 |
| Adj. Net Financial Position | 826.7 | 642.8 | 183.9 |
| Net Financial Position for funded investments (Debt/-Cash) | (86.1) | (93.0) | 6.9 |
| Net Financial Position | 740.6 | 549.8 | 190.8 |
| o/w IFRS 16 Leases | 30.1 | 20.9 | 9.1 |
Net CAPEX breakdown
| EMARKET SDIR |
|---|
| CERTIFIED |
| € mln | IQ 2023 | IQ 2024 | ∆€ |
|---|---|---|---|
| Motorways | 9.5 | 1.4 | (8.1) |
| Ro.S.Co. & Services | 3.3 | 2.4 | (0.9) |
| Railway infrastructure | 0.7 | 1.2 | 0.5 |
| Road passenger mobility | 6.3 | 1.0 | (5.3) |
| Energy | — | 1.5 | 1.5 |
| Gross CAPEX made by FNM | 19.8 | 7.5 | (12.3) |
| Railway infrastructure (managed only) | 28.0 | 49.6 | 21.6 |
| Total Gross CAPEX | 47.8 | 57.1 | 9.3 |
| Public contributions - Road passenger mobility |
2.3 | 4.0 | 1.7 |
| Public contributions - Railway infrastructure |
21.6 | 22.5 | 0.9 |
| Public contributions - Motorways |
8.9 | — | (8.9) |
| Net CAPEX | 15.0 | 30.6 | 15.6 |
Rolling Stock Purchase Programme 2017-2032
Shareholders and share performance
Share price @ {14-mag-24}: €{0,53}
| Share capital profile | Shareholders' structure | |||
|---|---|---|---|---|
| Market capitalization @ 14-mag-24 : { } N. of shares Average traded volumes (last 30 days) |
€ 231,4 mln { } 434.9 mln 484.810 orders { } |
27.7% 57.6% 14.7% |
Regione Lombardia Ferrovie dello Stato Market |
|
| Share price change | 17,7 % YTD { } |
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]
