ECONOMIC-FINANCIAL PERFORMANCE

Total consolidated revenues in the first half of 2024 amounted to €461.3 million and increased by 5.7% compared to the same period last year. The increase in revenues is linked to the increased air traffic managed and fully compensates the balance component, which was negative by €25.3 million and basically in line with the comparison period.

Revenues from operations stood at €469.1 million, up 6.0% compared to the first half of 2023, mainly due to the positive performance of the core business.

Non-regulated market revenues of €15.2 million reflected a slight decrease of €2.8 million, mainly due to a different distribution of revenues over the current year compared to 2023. In the second part of the year, the revenue targets on the non-regulated market for 2024 will be met leveraging on a series of commercial opportunities and orders with positive impacts in the second half of the year as well as in the coming years, confirming the target presented to the financial community last March.

Operating expenses amounted to €361.4 million, up 5.7% compared to the first half of 2023, mainly due to the higher volumes of traffic managed and the related impact on personnel costs, which increased by approximately €17 million. This increase is mainly attributable to the €5.3 million increase in fixed remuneration, mainly due to the effects of: i) the higher Group headcount by an average of 60 units; ii) the inflationary recovery provided for in the Labour Contract, through the November 2022 agreement, which provides for the recognition from 1 September 2023 of a +2% per annum on employee remuneration, and the increase in variable remuneration by €6.7 million due to the hourly flexibility allowance recognised to operating personnel, not present in the comparison period, and the increase in operating overtime, linked to the higher volumes of traffic managed.

Other operating costs amounted to about €78 million, up 3.3%, mainly due to higher spare parts to support operating plants and higher professional services related to sales orders, partially offset by lower utility costs.

These values resulted in EBITDA of €99.9 million, up 5.5% compared to the first half 2023, with an EBITDA margin of 21.6%.

EBIT was €42.7 million, up €9.7 million compared to the same period in 2023.

Financial income and expenses showed a negative amount of €4.5 million, with an improvement of €2.1 million compared to the first half of 2023, due to higher financial income accrued on deposits and the discounting of receivables for balance, which partially offset the higher impact of interest expenses related to interest rate trend.

Taxes for the period accounted for €15.2 million, with an increase of €7.2 million compared to the first half of 2023, due to the higher income before taxes and the dynamics linked to deferred taxes.

The ENAV Group ended the first half of 2024 with a net profit of €23.0 million, up 25.3% compared to the same period in 2023.

Net financial debt at 30 June 2024 stood at €424 million, up by €101.7 million compared to the figure recorded at 31 December 2023, essentially due to the payment of the dividend of €124.4 million in May 2024, partially offset by the cash flow generation from ordinary operations, which benefited from higher cash ins from core business compared to the same period in 2023. It should be noted that a first €80 million tranche of the EIB loan, signed in October 2023 for a total of €160 million, was disbursed in April 2024.

OUTLOOK 2024

In view of the results achieved in the first half-year, the outlook for 2024 already known by the financial market is confirmed.

Alternative performance indicators

• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): an indicator of profit before the effects of financial operations and taxation, as well as depreciation, amortisation and writedowns of property, plant and equipment and intangible assets and receivables and provisions, as reported in the financial statements and adjusted for investment grants directly related to the depreciating and amortising investments to which they refer;

• EBITDA margin: EBITDA expressed as a percentage of total revenues, adjusted for investment grants as specified above;

• EBIT (Earnings Before Interest and Taxes): EBITDA less depreciation and amortisation adjusted for investment grants and writedowns of property, plant and equipment, intangible fixed assets, receivables and provisions;

• EBIT margin: EBIT expressed as a percentage of total revenues less investment grants as specified above;

• Net non-current assets: a financial measure represented by the fixed capital employed in operations. It includes property, plant and equipment, intangible assets, investments in other entities, non-current trade receivables, and other non-current assets and liabilities;

• Net working capital: capital employed in operations comprising inventory, trade receivables and other non-financial current assets, net of trade payables and other current liabilities excluding those of a financial nature;

• Gross capital employed: the sum of net non-current assets and net working capital;

• Net capital employed: the sum of gross capital employed, less employee benefit provisions, the provision for risks and charges and deferred tax assets/liabilities;

• Net financial debt: the sum of the current and non-current financial liabilities, current financial receivables and non-current trade payables, and cash and cash equivalents. Net financial debt is determined in accordance with the provisions of Guideline no. 39 issued by ESMA and in line with Warning Notice no. 5/21 issued by CONSOB on 29 April 2021;

• Free cash flow: the sum of the cash flow generated or absorbed by operating activities and the cash flow generated or absorbed by investing activities.