ENAV S p A : PRESENTATION 1Q 2021 RESULTS

1Q 2021

Financial Results

May 13, 2021

1Q 2021 Highlights

• Severe impact of the Covid-19 emergency on the aviation sector impacting 1Q 2021: en-route traffic reduced 65.1% YoY and terminal traffic declined 66.9% YoY
• Net revenues in 1Q 2021 increased by 10.2% YoY to €189.0m mainly driven by positive balance that more than offset the reduction in revenue from operations which declined 63.4% YoY as a result of the severe traffic decrease caused by Covid-19
• EBITDA in 1Q 2021 at €44.7m (+54.8% YoY) driven by top line increase and our focus on costs
• EBITDA margin at 23.6%
• Net profit of €11.8m despite Covid-19 impact on the aviation sector
• Capex of €14.5m in 1Q 2021, compared to €13.3m recorded in 1Q 2020
• Net financial debt of €285.9m driven by NWC absorption due to non-cash balance generated in the year
• Solid liquidity profile, with cash balance of €254.7m

1

1Q 2021 Main Traffic Trends

Severe impact from Covid-19, on both en-route and terminal traffic

• En-route service units down 65.1%1 YoY as a combined result of:
• Overflight service units down 61.9% YoY
•	International service units down 76.7% YoY
•	National service units 56.7% YoY

En-route (traffic breakdown by service units)

National

Overflight25%

49%

1Q 2021:	(65.1)% YoY

555,9241

International

26%

Terminal (traffic breakdown by service units)

• Terminal service units down 66.9%1 YoY due to:

• Decrease in both international and national traffic, down 73.7%

and 56.9% YoY, respectively

• Decline in traffic in all three charging zones

• 1Q 2021 traffic decrease in Italy was in line with other major countries

in Europe

1. Excluding exempt flights not communicated to Eurocontrol (for en-route 280 SUs, terminal 186 SUs)

International

53%

Zone 3

37%

Users

96.3%

	(66.9)% YoY
FY 2020:
53,6031	National
	47%
Zone 1	Zone 1	Zone 2
2%	10%
18%

	Exempt
	3.7%
Zone 2	Zone 3
88%
45%
2

Net Revenue Performance

Net Revenue Breakdown

€m

		171.6	10.2%	189.0
							(63.8)%
						11.7
		32.5			30.1	(68.1)%
		94.3	w/o balance:	147.2
w/o balance:			n.m.
			+€131.2m
+€28.4m	44.9
			1Q 20			1Q 21
			Other 1		En-route			Terminal

Non-Regulated Revenue

€m

(14.5)%

5.8

4.9

1Q 20

1Q 21

• 1Q 2021 Net revenue increased 10.2% YoY, (€17.4m) driven by positive balance, increasing YoY, which more than offset the decline in revenue from operations of 63.4%
• Significant decrease in both en-route and terminal revenue, down 68.1% and 63.8% respectively, due to the Covid-19 pandemic impacting only March 2020 vs. the entire 1Q 2021
• 1Q 2021 positive balance of €131.2m has been determined as in FY 2020 accounts, following EU Regulation 2020/1627, published in November 2020, and considering the Commission's initial indications in terms of efficiency to be applied to the actual determined costs. 1Q 2020 balance was instead determined according to standard regulation on traffic risk sharing mechanism. The two different methodologies have determined an outperformance in 1Q 2021 compared with the corresponding period of the previous year.
• 1Q 2021 Revenue from non-regulated business at €4.9m, down 14.5% compared with 1Q 2020, mainly due to Covid-19pandemic
• Other operating income at €8.6m, marginally increasing (2.6%) vs. 1Q 2020

1.	Other includes balance, non-regulated activities, opex contributions, exemptions and other income	3

Cost Evolution

Delivering External Cost Efficiency

€m

(7.3)%

32.3

29.9

1Q 201Q 21

Discipline in Personnel Cost

€m			2.8%
	117.0	120.4
	(6.6)				(5.9)
(Capitalized
internal works)		1Q 20				1Q 21

• External opex optimization continues to deliver good results, with costs decreasing €2.4m or -7.3% YoY as a combination of:
• • Lower consultancies and external services costs (-21.6%)
  • Reduction of utilities and telecommunication costs (-5.1%), driven by smart working and our full IP digital network
  • Lower costs towards Eurocontrol (-7.8%)
• Personnel Costs increased 2.8% YoY (or €3.3m), mainly due to an increase in variable pay, coming from new holiday days accrued in the quarter and not yet utilized
• Capitalized internal works decreased €0.6m

4