Good afternoon, ladies and gentlemen, and welcome to the first quarter 2026 results presentation, which will be hosted by our CFO, Luca Colman. In the presentation, we will provide some highlights of the period, and then we will walk you through the operational and financial performance for the group.

Following the presentation, we will have the usual Q&A session. Before we start, let me remind you that media can be connected to both the presentation and the Q&A session.

Thank you for joining us, and now let me hand over to Luca.

Thank you, Fabrizio, and good afternoon. I will start with the key highlights of the first quarter 2026.

The year started with a robust growth of traffic volume. In Q1, which includes 1 month of the conflict in Middle East, service units for en-route marked an year-on-year growth of 8.6%, ahead of plan expectations by 4.5 percentage points.

We are facing high levels of volatility triggered by the Middle East conflict, and in a prolonged crisis scenario, dynamics on availability and price of jet fuel, can have an impact on traffic during the summer season. To this end, as we approach the summer season, we will continue to monitor closely the evolution of traffic.

Financial performance and cash generation were solid. EBITDA came in at €5.1 million, and free cash flow was around €41 million, up by 1.5 times versus previous year.

Finally, let me remind you that May 14th, the AGM will appoint the new board of directors. Let's move now to the operating and financial performance of the quarter.

In the first quarter of the year, we experienced a remarkable growth in traffic, with en-route recording high single-digit growth and confirming Italy as the best performer amongst the European peer group. The performance for en-route growth was largely driven by overflight and international traffic, up respectively by 14.3% and 7.4% year-on-year, more than offsetting the slowdown in national traffic.

This level of traffic positions us ahead of plan expectations by 4.5 percentage points. Terminal traffic increased by 2.7% year-on-year, growing in both charging zones.

The overall performance is driven by international traffic, which more than offset the contraction of national traffic. Despite the very promising start of the year, we will closely monitor the evolution of traffic over the coming weeks, as the potential shortage and price dynamics for jet fuel could impact traffic trend for the summer season.

Let's move now to the economics results, starting with revenues. Total revenues for the period amounted to €196 million, supported by the continued strength of our core regulated activities and the positive performance of the non-regulated business.

Looking at the regulated business, net regulated revenue contributed for €13.6 million, driven by the solid growth of en-route and a stable contribution from terminal. Balance N-2 impacted positively for €2.7 million as a result of negative balance N-2 for €37.3 million in Q1 '25 and a negative €34.6 million in Q1 '26.

The non-regulated business contributed with €3.4 million, mainly driven by the commercial activities in India, where we have recently opened our branch. Balance for the period impacted for a negative €2.2 million as a result of negative balance for the period for around €0.3 million in Q1 '25 and a negative €2.6 million in Q1 '26.

Moving to costs on slide 5, in Q1 '26, total operating costs reached €191 million, up by 4.9%, mainly driven by the increase in personnel costs. Personnel costs stood at around €159 million, up by 7% year-on-year as a consequence of growth in fixed component due to the contract wage adjustment mainly linked with inflation and agreement signed with the trade unions, and higher variable component mainly driven by higher overtime and operation needs linked to the higher traffic volume managed.

Let me highlight that the renewal of the labor contract signed last April is fully in line with the assumption of the industrial plan for 2026. Other operating costs are up by 1.9%, mainly due higher maintenance activities and other personal expenses linked to the increase of traffic.

These were partially offset by lower utilities expenses. Moving on slide 6 on EBITDA, EBITDA came in at €5.1 million, well above the value recorded last year.

As said, the result was underpinned by the positive performance of the core business in a supportive traffic environment, as well as the actual acceleration in deployment of commercial activities in a not regulated domain, particularly in India. Cost evolution is in line with plan expectations and confirms the expected trajectory for 2026.

Moving now to slide 7 on the profit and loss statement, D&A and provisions proved broadly stable year-on-year, with increase in depreciation broadly offset by lower provisions. Net financial expenses worth €1.3 million, down by approximately €1 million versus previous year, mainly due to lower debt and lower interest rates.

Group net income came in at negative €22.8 million, in line with the business seasonality. Let's move to cash flow and net debt on slide 8.

Net debt for the period stood at €99.4 million, down by €38.1 million versus December 31st, '25. Cash flow from operating activities amounted to €65.9 million and investment in period for €21.3 million.

Free cash flow in Q1 '26 was equal to €41.4 million, marking a 1.5 times increase versus Q1 '25, confirming the group's solid cash generation profile. Free cash flow for the full year is expected at €250 million, as already communicated in the fiscal year 2025 results.

I will now move to the closing remarks. The operating environment in the first quarter 2026 proved to be solid and continued to show record growth rates, well ahead of the European average.

Nonetheless, the persisting crisis scenario related to the Middle East conflict might trigger consequences for our business, as the summer season could be impacted by a shortage and/or spikes in price for jet fuel. The high cash generation profile of our business is confirmed with a 1.5 times increase year-on-year of free cash flow, and around of €250 million expected for the full year.

Finally, let me remind you that the next AGM, called for May 14th, will appoint the new board of directors and approve the DPS of €0.29 share for 2025. Thank you, and now let's open the Q&A section.

Hi, Luca. Hi, Fabrizio.

Thank you for the presentation and for taking my questions. Two from my side.

First, I wanted to go back to the jet fuel situation. Given that some airports in Italy already introduce restrictions last month, I was wondering if you could give us some color on the trend you have seen so far and the potential implications that a fuel shortage could have on the €250 million free cash flow target for the year.

Second, considering the change in management, I was wondering if we should expect any kind of changes to either the non-regulated strategy or long-term dividend outlooks. Thank you.

Hi, Carlos. Talking about the jet fuel impact, possible impact, let me say that tone from airlines appears to be from our point of view supportive at the moment, for the time being.

We have not seen particular criticals, criticalities and problems until April. Even the April data were quite quite good.

We we have recorded a growth of around 3% on number of flights. We don't have yet we don't have the service service unit April service unit published yet by Eurocontrol, but but still the flights in April was quite quite good, supported 3% increase versus same period of the previous year.

A trend that seems to be confirmed also in the beginning of May as well. Nonetheless, we need actually to wait to see what will what happens in the Middle East as the risk, of the impact from the shortage and or increase in price of jet fuel can, always happen.

It seems to be also from the communication, I mean the press release of some airline, and these are public, they seems to be not particularly impacted, at least for next 2, 3 months. We heard from, ITA Airways and Wizz Air, so, there are some public press releases that they see that they shouldn't have particular impact for the next few months.

We are at the moment positive and confident, even if, it's a very particular period, we have to wait to to have more data. At least at the moment, what we have recorded, even the first days of May are still an increase of traffic in term of flight.

For what concern concern the the second question, I think it's it's, it's correct to wait a couple couple days where, as I said, the the new AGM will appoint the new board of directors, and then and then the strategy will be, released actually or some change of the strategy could be released later later on, no particular answer on this point. Just wait.

Good. Thank you, Luca.

If I may just consider that within the regulatory period, the 5 years scenario agreed with the European Commission, for what concern the regulated business, the regulated business, as the word say, is regulated. Even if there is some possible to move in, but that the main scenario agreed with European Commission, with the regulator, is something that is in some way a framework that you more or less stay in.

This in some way stabilize at least the tariff and some figures for the regulated business.

Good. Thank you, Luca.

You're very welcome.

Hi, good afternoon. Thank you for taking my questions and for your presentation.

A couple of questions from my end. The first one is on traffic again.

If I remember correctly, at the end of March, Eurocontrol released its latest forecast for traffic, with the forecasting for Italy a 5% growth in traffic for 2026. I was wondering if you can provide some, let's say, color on the assumptions behind this 5% and whether it already accounts for some slowdown in traffic due to the situation in Iran.

The second one is on cost evolution. Again, if I remember correctly, during your March presentation, you guided for a +6% roughly increase in your P&L costs.

From that time to now, you closed the new labor contract, and so I was wondering if this +6% is still valid, at least for what you know up to date. Thank you.

Hi, Aleksandra. Yes, for what concern the traffic, see, as you said, Eurocontrol last March, published the new forecast for Italy, for the other European countries, what is the forecast for 2026 service unit for Italy, by 1 percentage point.

They moved from 1.1%, that is the one we have in the tariff and budget, increase to a 5.1% for what concern the base scenario, and this is definitely positive. In the same time, as you probably remember, they also gave a disclosure related to the fact that they still had to analyze all the impact of what is going on with the Middle East war and crisis.

They opened what is the high scenario and the low scenario in a big range. The total impact may go from a positive, still a positive low scenario at an increase 1.2% through a base scenario 5.1%, that the one we normally take into consideration, but it can also get to 9.2% increase.

This magnitude is more really related to the fact that still some other analysis that Eurocontrol has to do, and that's the reason why they take this big range. Yes, I think they increased by 1 percentage point what is the base scenario for the end of 2026 for us.

We think that it could be something that we can take in consideration. As said, we prefer to wait the next month and the summer season to understand well what will happen in the next weeks, just to be sure to have all element to have our forecast confirmed.

For what concern the cost evolution, yes, let me say that, yeah, even if we still need to wait the impact of the summer season, you know how much the summer season can move some variable part of our costs. The current year-end forecast is broadly in line with what we said before, I would say, with the performance report in 2025.

If you look the cost evolution 2025 is what we expect also by the end of this year if nothing big change will not apply. Even the impact of the renewal of the staff contract has been considered in what I'm just said.

Take a number close to the performance report in 2025 that I guess it was increased 6.4%, maybe. Something between this value.

Thank you. Very clear.

Thank...

Hi, Luca, Fabrizio. Thank you very much for your presentation.

Just two questions from my side. I appreciate the lack of visibility on traffic heading into summer, but the €250 million free cash flow guidance, when you set that guidance, what were the underlying traffic assumptions embedded in this?

Secondly, just a bit more color on the strikes that took place yesterday in Rome and Naples. My understanding was you reached a formal agreement with the unions.

I guess what is the motivation for workers continuing to strike? Thank you.

Okay.

Yes, Amal. For what concern the first question, let me say that the traffic increase that we have in our budget in 2026 is 4.1% increase of en-route.

Is the one that was agreed with the regulator in the performance plan and is also in the tariff, very in line. Let me say that now we are, in the first quarter we are with a good result as you may have seen from presentation, much higher than that value, but even the Eurocontrol is 5.1%.

That's cash flow generation is related to this value, yeah, that's right. At the moment we feel, at least from the information we have now, we feel comfortable to confirm cash flow generation looking the evolution of traffic in these weeks.

For what concern the strike that we had, it's just a minor trade union that didn't sign. All the different trade unions have signed the contract, it was just one minor that from what I know didn't sign, and so it was just a way to show that they didn't agree with this renewal.

It was just a local, if I'm right, it was a local strike. It didn't impact actually all the Italian airspace, it was just a local strike with a minimum impact, from what is the information came to me, with a minimum impact on the service.

Thank you very much.

Yes, hello. Good evening.

Can you hear me?

Yes.

Okay. Some questions from my side as well.

The first one is on the service unit growth mix. As you were pointing out, Luca, most of the growth comes from the international and above all the overflights.

I was wondering if this growth in the overflight is driven by any rerouting which may occur in March because of the conflict in Iran, and if you see any let's say benefit or headwinds from the war on the routes taken by the aircraft or the airlines? The second question is again on OpEx, mainly on staff costs.

In the press release you mentioned the impact of the performance bonus, what would the staff cost growth be excluding the let's say clawback of this performance bonus? Finally, on the non-regulated revenues growth, which was very very strong and I think organic, my question is, what should we expect for the remaining part of the year?

Is this growth driven by some phasing, new contracts coming in, or there's let's say a underlying trend behind this growth? Thank you.

Thank you, Luca. We will be in a second with you.

Luca. Sorry, we just had to check just to be sure to have understood your question.

For what concern the service unit in March, above all the overflight, March was the first month after the Middle East crisis started, and there was a kind of a not panic, but just rerouting and readjusting everything. There was a lot of movement on some flights from one part to another part, and so there was a lot of rerouting.

Then they adjust by the end of March, and in April above all they readjust to a normal situation. Still effect from the fact that the Iranian airspace is closed, some flights goes below that airspace and then they move up to Northern Europe, coming from the Middle East actually, passing through Egypt, then decide to pass through Italy or through the Balkanic area.

The good thing is we still continue to perform very well in term of delay. We are still the best in class in term of the quality of services.

We don't give delay, and this attract traffic in our airspace. This is one of the reasons why we are still having a very important impact of the overflight on our figures.

Yeah. If I'm right instead, for what concern the second question in term of the agreement with the personnel, this is a more or less €5 million impact on cost for what concern the extra flexibility that we have asked to our controllers.

For what concern instead the non-regulated growth. We confirm at the moment what is our guidance.

As said, we forecast to get €62 million million euro revenues from not regulated business, and that's is actually confirmed at the moment. Luca, guys, it's clear?

Yes. Thank you very much.

You're very welcome.

Thank you. We actually have a last one which has come through our inbox at [email protected], and the question is on the 2026 target, and basically they're asking us why we did not disclose the target for the full year and when we think we will be in a position to share with the market the target for 2026.

Thank you, Fabrizio. The reason is mainly related to the scenario.

Until the Middle East crisis does not stabilize or resolve, we believe that it is really difficult to define which traffic forecast can be considered reliable, and this is above all for the summer season. Therefore, we prefer to postpone the outlook for the year to the first-half release of next August.

Further to the potential of volatility on traffic, a postponement to August was also preferable also from a governance perspective. In fact, on May 14th, only in a couple day time, the AGM will appoint a new board of directors that will be then in a position to be included in the evaluation of the scenario going forward.

These are the two main reason why

we... Thank you, Luca.

With this, there are no other questions that we have received on our end. If there are no other questions from the audience, I think that we can wrap up.

Thanks everybody for joining our call this afternoon.