Significant growth in air traffic over Italy and outstanding performance of the non-regulated business

• En-route and terminal traffic up 16% and 13.7%, respectively, in terms of service units compared to the first half of 2022
• Total revenues at €436.6 million, up 5.9% compared to the first half of 2022
• Revenues from the non-regulated market at €18 million, an increase of 42.7% compared to the first half of 2022
• EBITDA of €94.7 million, slightly decreasing by 2.4% compared to the first half 2022, with an EBITDA margin of 21.7%
• Consolidated net profit at €18.4 million

Rome, 3 August 2023 - The Board of Directors of ENAV S.p.A., in their meeting held today under the chairmanship of Alessandra Bruni, approved the First-Half Financial Report as at 30 June 2023.

In terms of service units, en-route traffic volumes in the first half of the year exceeded those of 2019, a record year for the Italian aviation.

The first half of 2023 is also marked by a number of events, that didn’t occur in the first half of 2022 and have had an impact on the costs structure. These effects are primarily attributable to the formalisation of some new maintenance contracts, the increase in interest rates, which became effective from the second half of 2022 and the renewal of the economic part of the National Collective Labor Contract, which took place in November 2022 and became effective from January 1, 2023.

The Chief Executive Officer Pasqualino Monti said: “ENAV Group is ensuring an efficient service and maximum safety to the entire network operating in the Italian airspace. We are experiencing a period of continuous and decisive growth in flights, particularly international, which indicates a desire and an interest in visiting Italy. ENAV is a solid company with a great credit worldwide and we aspire to grow further. By the end of November, we plan to present an updated Business Plan to give new impetus to the Company mainly through three strategic lines: i) the non-regulated business, an important lever to improve the margins of the Group on which we have already impressed the right acceleration; ii) the diversification of the business, which means looking at the market for possible acquisition opportunities in line with the nature of our sector; iii) the technological upgrading, functional to the continuous improvement of air traffic management operational performance which is and will remain our main mission, to consolidate ENAV's international leadership in the air traffic control sector”.

En-route traffic in Italy, in terms of service units, increased by 16% in the first half of 2023, compared to the same period last year.

Specifically, international air traffic (flights departing from or arriving at a foreign airport) recorded an increase in service units of 21.7% compared to the first half of 2022. Overflight air traffic (flights crossing Italian airspace without landing) increased by 20.6%, whereas domestic air traffic (flights departing from and arriving at an Italian airport) remained stable.

Terminal traffic, in the first half of 2023, showed a positive trend of 13.7% in terms of service units compared to the same period of last year. This was primarily due to the significant increase in international flights of 21.7%.

ECONOMIC-FINANCIAL PERFORMANCE

Total consolidated revenues for the first half of 2023 amounted to €436.6 million and increased by 5.9% compared to the same period last year due to higher managed air traffic and outstanding performance in the non-regulated market. This rise more than offsets the negative change of €27.2 million, compared to the first half of 2022, in the balance component.

Revenues from operations stood at €442.7 million, up 12.8% compared to the first half of 2022.

Revenues from the non-regulated business amounted to €18 million, an increase of €5.4 million compared to the same period last year, mainly due to the activities related to the ENAV’s performance of air navigation support services in Qatar.

Operating expenses increased by 8.5% to €341.9 million compared to the first half of 2022, mostly as a result of an increase in personnel costs of €21.1 million. This rise is primarily due to the renewal of the economic part of the National Collective Labor Contract of the Parent Company and Techno Sky, which was signed with the Trade Unions in November 2022. This renewal provided an increase in the revalued salary items, taking in consideration the contractual hiatus period (2019-2022), and determining a new salary base applied as of 1 January 2023 and thus absent in the first half of last year. The variable component of the remuneration, mainly linked to overtime being worked by Air Traffic Controllers, due to the higher number of flights managed, and the increase Group workforce by +110 actual employees (+106 average employees), compared to the same period in 2022, both contributes to the increase in personnel costs.

These values had an effect on EBITDA, which was €94.7 million, down 2.4% compared to the first half of 2022, with an EBITDA margin of 21.7%.

EBIT was €33 million, a decrease of €4.7 million compared to the same period in 2022.

For the aforementioned effects and the increase in financial expenses, due to the rise in interest rates, the ENAV Group closed the first half of 2023 with a net profit of €18.4 million, down €9.4 million from the same period in 2022.

Net financial debt amounted to €415.5 million at 30 June 2023, an increase of €7.6 million compared to the figure recorded as of 31 December 2022. The change in net financial debt is due to the effect of income and payments dynamics related to day-by-day operations, which produced a negative cash flow because the Group has not yet benefited from the receipts of May and June invoices, the months with the highest volume of air traffic in the first half of the year.

OUTLOOK 2023

Given the traffic volumes handled in the first half of the year and those expected in the second half, which support the Group’s solid performance, the 2023 outlook already known to the market is confirmed.