• En-route and terminal traffic declined by 16.6% and 20.7% respectively, in terms of service units vs. the first half of 2020
• Consolidated revenue of 375 million euro (+0.7% YoY)
• Revenue from non-regulated business increasing: +28.2% YoY
• Consolidated EBITDA of 76.6 million euro (-13% YoY)
• Consolidated net profit of 13.5 million euro (-13.7% YoY)

Rome, 3 August 2021 – The ENAV S.p.A. Board of Directors, held today under the chairmanship of Francesca Isgrò, approved the Half-year Financial Report at 30 June 2021. Despite the negative data in air traffic recorded in the first half of 2021 vs. the same period in 2020, Q2 2021 was characterised by a significant recovery of en-route traffic. A comparison with the first half of the previous year is uneven as the pre-pandemic months of January and February 2020 registered an average increase of nearly 10% compared to the same period in 2019. However, a comparison between the levels of traffic in the first half of 2021 and data from the first half of 2019 highlighted a decrease of 65.3%, with an improving trend confirmed in the month of June 2021 (-53% vs. H1 2019).

Data from en-route traffic in Italy (-16.6%) in the first half of 2021 are slightly better than the average data from main European countries, which saw a decrease (-22.5%) in en-route service units. In detail: France (-25.7%), Germany (-29.6%), Great Britain (-38.0%), Spain (-25.5%).

ENAV’s CEO Paolo Simioni stated: The first half of the year still suffered from the negative impact the pandemic has had on the aviation sector, registering data that were in line with European forecasts. The month of June saw the recovery begin and in July we managed a number of flights that amounted to 65% of those in 2019, with peaks of over 70%. Despite this difficult time, we are safeguarding our Company’s economic and financial viability by continuing to develop our business portfolio; at the same time, we are investing in system modernisation and infrastructure digitisation in order to support the recovery and launch new services related to drones and advanced air mobility. However, our investments are not limited to technology: in the first half of the year, in fact, we hired 50 young permanent employees. Furthermore, our Company is ready to take advantage of the Italian NRRP (National Recovery and Resilience Plan) for which we have submitted projects amounting to 110 million euro.

En-route traffic in Italy, in terms of service units, decreased by 16.6% in the first half of 2021. In particular, Q1 2021 showed a decrease in en-route traffic in Italy of 65.1% vs. the same period in 2020, which had not been fully impacted by the health emergency, while Q2 2021 showed an increase of more doubled compared to 2020 which, in the same period, was involved in the lockdown.

It is worth pointing out that, in H1 2021, domestic air traffic (i.e., flights arriving in and departing from Italian airports) recorded a growth of 15.1% in service units compared to the same period of the previous year.

International air traffic (i.e., flights arriving in or departing from an airport abroad), in terms of service units, decreased by 38.0% compared to the first half of 2020. Overflight traffic (relating to flights that pass through Italian airspace) decreased by 15.4%, in terms of service units.

Terminal traffic decreased by 20.7%, in terms of service units, in the first half of 2021. This decrease was consistently recorded throughout Italy. However, domestic flights showed a positive trend of 7.1%, in terms of service units, compared to the first half of 2020, while international traffic decreased by 37.6%.

FINANCIAL PERFORMANCE

Total consolidated net revenue in the first half of 2021 reached 375 million euro, with a slight increase (0.7%) compared to the same period in 2020, thanks to higher revenue from non-regulated business and to the effect of balance, which had a positive impact of 212.7 million euro allowing for the partial recovery of the decrease in traffic.

Revenue from operations reached 142.4 million euro, with a decrease of 13.5% due to the decline in traffic managed over the period.

Revenue from non-regulated business, on the contrary, amounted to 15.1 million euro, with an increase of 28.2% compared to the first half of 2020. This was mainly driven by revenue from ENAV’s IDS AirNav, a company specialized in the management of aeronautical information, which signed contracts abroad, in particular in Zambia and Russia.

Operating costs showed an increase of 4.9% vs. the first half of 2020, standing at 298.4 million euro. This rise is mainly due to an increase in personnel costs related in particular to variable compensation as an effect of an increase in both the amount of not yet utilized annual leave and in costs of operating staff who were taken back to their normal arrangement (vs. the reduced arrangement of the same period in 2020) in order to manage the increasing trend in air traffic over Q2 2021 and, in general, over the summer period.

External costs showed an increase of 1.6% vs. the first half of 2020 and stood at 63.5 million euro. This was due to resuming operations linked to orders from abroad as well as to increased electric utilities expenses across Italy.

These figures affected consolidated EBITDA, which stood at 76.6 million euro, as expected, with a decline of 13% compared to the first half of 2020.

EBIT stood at 14.8 million euro, with a decrease of 27.6% compared to the first half of 2020.

Despite the continuing reduction in air traffic, ENAV Group recorded a net profit of 13.5 million euro in the first half of 2021, with a decrease of 2.1 million euro over the same period of the previous year.

The net financial position stood at 389.6 million euro, with a negative effect of 144.5 million euro compared to data as of 31 December 2020. The negative variation is due to income and payment dynamics related to daily operating activities, which generated a negative cash flow due to the reduction of income from the parent Company’s core business linked to a decrease in air traffic control activities.

EVENTS AFTER THE END OF THE PERIOD

On 1 July 2021, the ENAV Board of Directors approved the Sustainability Plan for the period 2021-2023.

The Sustainability Plan includes 33 targets, which represent the main projects on which the ENAV Group will be committed in the period 2021-2023.

"Strategy and Governance", "Policies", "Technological innovation", "Reporting and Communication", "Culture and dedicated projects" and "Climate change" are the strategic guidelines of the Sustainability Plan. Starting from the 17 Sustainable Development Goals (SDGs) of the United Nations, the Plan outlines a series of actions, inspired by different scopes, including: the outcomes of stakeholder management activities, the analysis of the ENAV Group's positioning compared with main sustainability indices assessments’ and a benchmark analysis on main sustainability themes deemed of interest by the market and the Group.

By 2022 ENAV will be a zero-climate impact company, anticipating the European Union targets.

Direct CO2 emissions will be reduced by 23% in 2021 and by 80% in 2022. The remaining 20% will be offset financing environmental protection projects to the benefit of the whole country.

Projects to delete single-use plastics and implement the green supply chain are also meaningful. Furthermore, additional initiatives for people caring, will been implemented, such as welfare policies aiming at improving the work-life balance and a new vision of diversity and inclusion to be seen as opportunity to become a better company. With regards to the last point, projects dedicated to the inclusion of people with disabilities, gender diversity and diversity management, will be launched.

On July ENAV has signed new financing contracts for a total amount of 250 million euros out of which Term Loans for a total of €180 million and RCF (Revolving Credit Facility) for a total amount of 70 million euros, with a duration of 24 months from subscription with repayment at maturity.