FNM S p A : The Board of Directors approves the results at 30 June 2021

PRESS RELEASE

THE BOARD OF DIRECTORS APPROVES THE RESULTS AT 30 JUNE 2021

• Revenues EUR 226.4 million (EUR 137.8 million at 30 June 2020); Pro-forma revenues EUR 256.1 million (EUR 225.6 million at 30 June 2020, +13.5%)
• Adjusted EBITDA EUR 65.8 million (EUR 36.4 million at 30 June 2020); Pro-forma adjusted EBITDA EUR 77.6 million (EUR 64.2 million at 30 June 2020, +20.9%)
• EBIT EUR 32.1 million (EUR 15.9 million at 30 June 2020); Pro-forma EBIT EUR 37.4 million (EUR 23.0 million at 30 June 2020, +62.6%)
• Adjusted net profits EUR 16.0 million (EUR 13.4 million at 30 June 2020); Pro-forma adjusted net profits EUR 20.2 million (EUR 18.4 million at 30 June 2020, +9.7%)
• Adjusted NFP for EUR 776.8 million (EUR 43.8 million at 31 December 2020)
• Upward revision of guidance for 2021

Milan, 30 July 2021 - The Board of Directors of FNM S.p.A., which met today under the chairmanship of Andrea Angelo Gibelli examined and approved the Consolidated Condensed Interim Financial Statements of the FNM Group at 30 June 2021.

Consolidated economic and financial highlights

In the first half of 2021, the macroeconomic situation and people's way of life were still influenced by the effects of the pandemic caused by the spread of COVID-19, although the positive results of the development of the vaccination campaign and the consequent relaxation of restrictive measures denote a progressive improvement in the scenario.

With regard to the mobility sector, and in particular public transport and motorway traffic, the period was characterised by particularly weak transport demand in the first quarter, due to more or less severe restrictions to limit the third wave of the pandemic and consequent high rates of remote working and teaching, compared with a first quarter of 2020 that had benefited from regular demand conditions until 22 February. The relaxation of anti-contagion measures since March 2021 has had a positive effect on demand for mobility, which has returned to grow, although it remains lower than pre-pandemic levels. In contrast, in 2020, the months of March through May were characterised by a particularly severe lockdown.

During the semester under consideration, the Group has proved to be resilient and flexible in adapting the service to demand and healthcare provision, ensuring on the one hand social distancing and on the other safe conditions for both its employees and its users.

It should be noted that the half-year results include the effects of the significant strategic transformation that the Group has implemented in the first months of 2021: thanks to the entry into the motorway infrastructure sector with the acquisition of the controlling stake in Milano Serravalle- Milano Tangenziali S.p.A. (MISE), the FNM Group has become the key strategic operator in Lombardy in the infrastructure sector for integrated mobility management, while improving its profitability profile and business risk diversification.

In light of the evolution of demand in the half-year, which overall improved compared to forecasts, the Group revises its estimates for 2021 upwards, while maintaining a cautious attitude towards the evolution of COVID-19 pandemic and considering the continuing limited visibility on possible government support measures in favour of the sectors most affected by the pandemic, including local public transport.

Consistent with expectations, the Group's financial profile at the end of the half-year was affected by the debt incurred for the acquisition of MISE, but remained in line with the parameters defined for maintaining a Baa3/BBB- rating with a stable outlook.

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In this context, the Group's financial results for the first half of 2021, which take into account the full consolidation of MISE from 26 February 2021, were as follows:

Amounts in millions of euros	1st HALF 2021 1st HALF 2020	Change	Change %
Revenues	226,4	137,8	88,6	64,3%
Adjusted EBITDA*	65,8	36,4	29,4	80,8%
EBITDA	66,3	36,1	30,2	83,7%
EBIT	32,1	15,9	16,2	101,9%
Adjusted net profit*	16,0	13,4	2,6	19,4%
Net profit for the period	(10,9)	(0,7)	(11,9)	ns

• Before extraordinary income and expenses
• Before profit of companies measured with the equity method

In order to better represent the period performance, the Company has opted to comment on the economic changes based on the pro-forma income statement, which considers the consolidation of MISE from 1 January 2021. The first half of 2020 comparison period was similarly pro-formed as if MISE's consolidation had occurred on 1 January 2020.

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Amounts in millions of euros	1st HALF 2021 1st HALF 2020	Change	Change %
PRO-FORMAPRO-FORMA
Revenues	256,1	225,6	30,5	13,5%
Adjusted EBITDA*	77,6	64,2	13,4	20,9%
EBITDA	78,1	63,9	14,2	22,2%
EBIT	37,4	23,0	14,4	62,6%
Adjusted net profit*	20,2	18,4	1,8	9,7%
Net profit for the period	(7,5)	0,3	(7,8)	ns

• Before extraordinary income and expenses
• Before profit of companies measured with the equity method

On a pro- forma basis, total revenues amounted to EUR 256.1 million in the reporting period, up EUR

30.5 million from EUR 225.6 million in the comparable 2020 period, made up as follows in the four business areas:

Amounts in millions of euros	1ST HALF 2021	1ST HALF 2020	Change	Chg %
PRO-FORMA	PRO-FORMA
Railway infrastructure management	64,6	63,3	1,3	2,1%
Rosco & Services	39,4	41,2	(1,8)	-4,4%
Road passenger mobility	60,7	44,7	16,0	35,8%
Motorway infrastructure management	108,4	87,8	20,6	23,5%
Intercompany eliminations	(17,0)	(11,4)	(5,6)	49,1%
Total consolidated revenues	256,1	225,6	30,5	13,5%

• In the field of railway infrastructure management (relating to traffic management, network maintenance and upgrading) revenues grew by EUR 1.3 million (+2.1%). The change is essentially due to higher revenues from the rental of rolling stock, which take into account the increase in the fleet of Regione Lombardia made available to Trenord. Revenues from public contracts and grants were in line with first half 2020.
• In the business area in which the Parent Company operates directly (RoSCo & Services) and which includes the leasing of rolling stock to investees operating in local public rail and freight transport sectors and centralised Corporate services revenues showed a reduction of EUR 1.8 million. The change takes into account i) the EUR 2.3 million reduction in revenues from rolling stock rental due to the renewal of the lease agreement with Trenord of TAF trains, the effect of which is partially offset by higher lease payments arising from the new fleets leased to Trenord and DB Cargo Italia, ii) the increase in other revenues (+ EUR 0,5 million), mainly for administrative services and IT management

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offered to the investee companies, partially compensated by the reduction in rents on commercial premises caused by the pandemic.

• The road passenger mobility segment recorded revenue growth of EUR 16.0 million. In particular, revenues from public contracts and grants increased by EUR 4.4 million mainly due to the economic effect of the government measures in force1 to compensate for the loss of revenue from ticketing and additional services (totalling an estimated approximate EUR 7.2 million, which may, however, be subject to balance calculations and/or changes as also envisaged by the "Relaunch" Decree).
  Revenues from transport services also grew by EUR 11.0 million compared to the same period in 2020 thanks to the increase in sub-contracted activities to enhance school services and the recovery of passenger transport following the easing of mobility restrictions. In the first half of 2021, total passengers carried by FNMA and ATV recovered 17%, reaching 21.7 million, compared to the same period in 2020 (-45% compared to the same period in 2019).
• The management of the motorway infrastructure closed the first half of the year with revenues up by EUR 20.6 million, mainly thanks to the recovery of toll revenues due to the higher traffic recorded in the period (equal to 1,133.9 million vehicle-km, +25.3% compared to the first half of 2020, and - 25.7% compared to the same period of 2019).

Operating costs increased by EUR 12.7 million (+15.2%) mainly due to the increase in costs in the road passenger mobility segment for subcontracting to third parties, fuel and bus maintenance, in relation to the increased service offered, as well as to the increase in costs related to the trend in motorway traffic.

Personnel costs increased by EUR 4.4 million, mainly due to the lower use of residual leave and the non- recourse to income support tools, used instead in the first half of 2020, against the release of a portion of the provision for risks relating to the agreement for the renewal of the Autoferro national collective bargaining agreement for EUR 1.4 million.

As a result of the foregoing, adjusted EBITDA (which excludes non-ordinary items) of EUR 77.6 million was up by EUR 13.4 million (+20.9%) on the first half of 2020. The Adjusted EBITDA margin indicator improved, going from 28.5% in H1 2020 to 30.3% in the same period of 2021.

Adjusted EBITDA is broken down as follows into the four business areas:

1 Law no. 77 of 17 July 2020 (Art. 200 paragraph 1, termed the "Relaunch Decree"), Law no. 126 of 13 October 2020 (Art. 44, termed the "August Decree"), Law no. 176 of 18 December 2020 (Art. 22 ter, termed the "Recovery bis Decree") and Law Decree no. 41 of 22 March 2021 (Art. 29, termed the "Support Decree").

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Amounts in millions of euros	1ST HALF 2021	1ST HALF 2020	Change	Chg %
PRO-FORMA	PRO-FORMA
Railway infrastructure management	3,4	5,6	(2,2)	-39,3%
Rosco & Services	23,9	26,5	(2,6)	-9,8%
Road passenger mobility	6,3	4,3	2,0	46,5%
Motorway infrastructure management	44,0	27,8	16,2	58,3%
Total adjusted EBITDA	77,6	64,2	13,5	20,9%

With regard to extraordinary income items in the first half of 2021, the EUR 0.5 million income was attributable to the release of a provision for risks following the partial closure of a dispute, partly offset by the costs related to the acquisition of MISE. The costs of EUR 0.3 million in the comparative period were entirely due to development project costs.

Depreciation and amortisation, amounting to EUR 40.7 million, are in line with the first half of 2020.

Comprehensive operating income consequently increased to EUR 37.4 million compared to EUR 23.0 million in H1 2020 (EUR +14.4 million).

The comprehensive result from financial operations was a loss of EUR 11.1 million, compared with EUR -0.8 million in the same period of 2020. The change reflects the higher financial charges relating to the Bridge loan for the acquisition of MISE, including the accrued portion of the upfront fee, the extension fee and ancillary charges. The figure for the first half of 2020, on the other hand, includes the capital gain on the sale of Locoitalia (EUR 1 million) and higher financial income from amortised cost for MISE (EUR 1 million).

Earnings before taxes amounted to a positive EUR 26.3 million, up compared to EUR 22.2 million in the first half of 2020.

Income taxes rise to EUR 6.1 million, from EUR 3.8 million in H1 2020, due to greater taxable income in the period achieved by MISE, partially compensated by the lower taxable income of FNM.

Adjusted consolidated net profit of the Group at 30 June 2021, net of the result of associated companies valued at equity, amounted to EUR 20.2 million, up EUR 1.8 million on the EUR 18.4 million of H1 2020.

The result of associates (valued at equity) was a loss of EUR 27.7 million, worsening compared to the EUR -18.1 million at 30 June 2020, mainly due to the result of the investee Trenord, which also in the first half of 2021 felt the effects of the measures put in place by the authorities to contain the COVID-19 contagion.

In the first half of 2021, Trenord contributed with a loss of EUR 26.2 million compared to a net loss of EUR 15.9 million in the same period of 2020. In particular:

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