FNM S p A : 2021 2025 Strategic Plan

LIFE IN MOTION

FNM 2021-2025 Strategic Plan

September 17, 2021

FNM Group | Highlights

• 2021-2025Plan consistent with the strategic guidelines approved by FNM BoD on 20 November 2020, configuring FNM as an integrated sustainable mobility operator guided by environmental, social and governance sustainability principles and including the effects of the acquisition of MISE, which had a transformational effect on the Group
• Definition of the main ESG KPIs and targets, among which 35% CO2 Emissions reduction and 100% use of renewable energy for electric rail traction by 2025
• 2021-25 CAPEX 850 mln euros, of which over one third in green activities included in the European Taxonomy, contributing to the achievement of 10 SDGs envisaged by the 2030 Agenda
• Confirmation of the 2021 guidance and economic and financial performance improvement on all business segments in the following years
• Refinancing of the EUR 620 mln bridge loan and financing of the investment plan tapping into the financial markets; recourse to sustainable finance to fund the capex plan
• Solid capital structure consistent with investment grade rating
• Dividend policy: DPS 2.3€c on 2021 earnings, increasing over the plan period by a 16% CAGR1, consistent with leverage target

1 - calculated based on 2021 expected DPS

2

The FNM Group

The strategic plan guidelines

The strategic plan assumptions

2021-25 economic and financial projections

2021 guidance and strategic plan targets

Appendix

FNM Group | Group Overview

Group at a Glance		Shareholders' Structure

• Established in 18771, FNM S.p.A. ("FNM" or the "Group") is the leading integrated sustainable mobility Group in Lombardy

Free Float

• It is the first organization in Italy to combine railway infrastructure management with road transport and motorway infrastructure management

• The aim of the Group is to propose an innovative model to manage mobility supply and demand, designed to support optimization of flows as well as environmental and economical sustainability
• The Group's activities are divided into four main segments:
• • Ro.S.Co. and Service
  • Management of the railway infrastructure
  • Road passenger mobility
  • Management of the motorway infrastructure

57.6%

14.7%

27.7%

Integrated player leader in transport and mobility in Lombardy

Key Figures3

• FNM S.p.A. is a public company, listed on the Italian Stock Exchange since 1926
• It is one of Italy's leading non-state investors in the sector
• The majority shareholder is Regione Lombardia, which holds a 57.6% stake
• 2,230 employees in 20202

	Ratings
	Baa3 with stable outlook
	BBB- with stable outlook
1	- FNM S.p.A. was incorporated on 12 December 1877 under the original name of Società Anonima delle Ferrovie Nord Milano-Saronno e Milano-Erba
2	- Average of the year 3 - Data on December 31, 2020 4 - On Ferrovienord railway network

4

4

FNM Group | Lombardy Region and FNM Presence

Lombardy Region at a Glance		FNM Group Presence

▪ The Lombardy Region is one of the richest regions in the European Union (EU) with a GDP per capita among the highest in the continent, about 32% higher than the national average and 26% higher than the EU average in 2019. In 2020 the regional unemployment rate was 5% far below the Italian and European average (9.2% and 7.1% respectively)

▪ Lombardy's production system is still one of the most developed in Europe with more than 800,000 companies and one of the highest rates of entrepreneurship

GDP1 per capita (euros)

European Union - 27 countries (from 2020)		Italy		Lombardy

40.000

30.000

20.000

10.000

0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Unemployment Rate2 (%)

14	European Union - 27 countries (from 2020)	Italy	Lombardy

10

6

2

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: Eurostat

1 - Gross domestic product (GDP) at current market prices by NUTS 2 regions by Eurostat, last update 19/05/20215 2 - Unemployment rates NUTS 2 regions from 15 to 74 years by Eurostat, last update 02/06/2021