Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the ENAV first half 2022 results and conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Vittorio De Domenico, Head of Investor Relations of ENAV. Please go ahead, sir. Thank you, Shirley. Good afternoon, ladies and gentlemen, and welcome to the ENAV first half 2022 results call. Here with me there are Mr. Paolo Simioni, ENAV CEO, and Mr. Luca Colman, ENAV CFO. They will be running you through the formal presentation, and after that, we'll be happy to answer your questions. With that, I leave the floor to Paolo. Thank you, Vittorio. Good afternoon to all. Ladies and gentlemen, welcome to ENAV first half 2022 results call. Before beginning in ENAV's results, I'm glad to announce that in May, the European Commission officially approved the Italian performance plan related to the third regulatory period, publishing the related Decision 2022/773. This formal act and the process for the definition of the performance plan related to RP3, which was impacted by the spread of COVID-19 pandemic. It is worth noting how the EU Commission in this decision literally stated that Italy outperforms by a significant margin both the RP3 Union-wide DUC, determined unit cost, trend and the long-term Union-wide DUC trend. Observing that Italy's en route DUC trend of -2.3% over RP3 outperforms the Union-wide trend of +1% over the same period. I'm also glad to confirm that traffic is recovering better than expected, almost reaching the pre-pandemic volumes and coming back to the standard pre-pandemic seasonality. Compared with our estimates included in the performance plan that foreseen a 2022 full year en route traffic at 85% of 2019, we now expect to reach 90% of pre-pandemic volumes. Now, with the regulation at the pre-pandemic condition, traffic volumes almost at 2019 level and tariffs reset to take into account COVID effects, we can finally state that we are in a back to normal situation, despite the rising inflation and the consequences of Russian-Ukraine conflict. During the second quarter, we have also finalized and disclosed to the financial community our new business plan, which is part of our long-term future strategic vision with a 10-year horizon that we call FutureSky 2031. Both the business plan and FutureSky are purely oriented to the sustainable success of the group, keeping, as always, safety as main priority and aiming at increased value for all stakeholders. Within the projects included in the business plan and in line with the scheduled timeline, I'm proud to communicate that in mid-June, ENAV has inaugurated the first digital remote tower in Brindisi Airport. This is the first step towards the digitally. Digitization and modernization of our new technical and operating model that will leverage the new remote tower ops, the largest one in Europe, together with the other one that we will develop in Padua. In the first half 2022, we have seen a solid year-on-year recovery in en route and terminal traffic, which were both almost 3 x first half 2021 service unit, reaching 90% and 84% respectively over 2019 levels. Net revenue in the first half of 2022 were EUR 412.1 million, increasing 9.9% year on year, driven by a solid growth in en route and terminal revenue. EBITDA was EUR 97 million, up 26.6% year on year, despite the expected rise in costs. EBITDA margin stood at 23.5%, 3.1 percentage points higher than 2021 first half. In the first half 2022, we recorded a EUR 27.7 million net profit, with the second quarter performance more than offsetting the first quarter net loss following standard seasonality in our P&L quarterly trend. CapEx was EUR 31.5 million, in line with the provided guidance. Net financial debt slightly raised in the first half 2022, reaching EUR 493.8 million compared with EUR 483.5 million at the end of 2021. Net debt on full year 2021 EBITDA stood at 2.2 x. Cash balance at the end of the first half was EUR 176 million, which remains more than adequate to face the needs coming from the business as usual. Let's go to the next slide. We can see the performance of enroute traffic, which show service unit growth of 178.8% year-on-year. Within enroute, international traffic increased 275.8% year-on-year. Overall, overflight was up 141.2% and national grew 115.6%. Overflight confirms to be the most important component within the enroute mix, accounting for 41% of total traffic, while the international component accounts for 37% and national for 22%. First half of 2022, en route service units were 90% of those recorded in the first half of 2019, paving the way to a very strong summer. This expectation is strengthened by the second quarter 2022 performance in terms of traffic volumes, which reached 95% of pre-pandemic 2019 second quarter. The quarterly trend also reflects the return of standard seasonality typical of our core business, as you know. Let me provide you also with the last available data which are aligned to the last quarter results. Total number of flights managed in the last week of July 2022 were 95.3% of those recorded in the same period of 2019. For what concerns terminal traffic in the next slide, service unit reported a 165.5% year-on-year increase, showing a steady performance in all three zones. International component went up 228.5%, and the domestic component grew 111.8%. First half 2022 traffic, terminal traffic reached 84% of 2019 first half volume, confirming also for terminal the solid recovery already seen in enroute. The recovery is even stronger in the second quarter 2022 in terms of traffic volumes, which reached 91% of pre-pandemic 2019 second quarter. With that, I give the floor to Luca. Thank you, Paolo, and good afternoon to all of you on the call. Moving to slide six, you see that the total revenue reaches EUR 412.1 million, growing 9.9% year-on-year. Worth noting within total revenue, the change in the relative weight of the various item contribution to the total growth compared with the last few years. The main contribution came from operating revenue related to the airlines and cashed within two months, and no more from the balance credit like occurred in the last few years. I think this is one of the most important point of this semester. En-route revenue increases by 219% and terminal revenue by 177.4%, thanks to the year-on-year traffic recovery. Therefore, balance accrued in the first half amounted to EUR 3.1 Million, a negligible amount compared to the last year, which was fully impacted by COVID-19 pandemic. The EUR 3 million positive balance reflect a back-to-normal situation from the regulatory point of view and is the sum of a positive contribution from previous year balance reversal for approximately EUR 6 million, Eurocontrol adjustments of approximately EUR 3 million also related to the previous year, and a negative balance generated in the first half 2022 for EUR 6 million, due to managed traffic volumes, which were higher than the forecast included in the first performance plan, in the performance plan. Moving now to the non-regulated business. We can see a year-on-year decrease mainly due to the different phasing of the D-Flight contract in the fiscal year 2022 compared to the fiscal year 2021. Moving now to the next slide, to the next page, we can see the above mentioned back to normal also in our costs. First half 2022 total operating costs increases of 5.6% year-on-year, in line with our budget, and mainly due to the variable component of personnel costs and the other operational costs. These increases derives from two main elements. First one is the rise in managed flight, and the second one is the increase of inflation. For what concern the first one, it is worth noting that the cost increase is not fully proportional to the revenues growth, driving an increase in EBITDA and the marginality. For what concerns inflation impacting personnel and external costs, let me remind you that ENAV is covered by its protective regulation. The delta between the actual inflation and the forecast included in the performance plan will generate a credit to be recovered in the coming years through the usual balance mechanisms. Personnel went up by 4.5% year-on-year, mainly due to a rise in a variable remuneration related to the overtime needed to manage the increased number of flights, which caused also the rise in social security contributions and a higher accrual related to the new holidays generated in the period and not yet utilized. External costs also increased year-on-year, mainly due to the recovery in air traffic volumes recorded in the period. The 10.7% rise, equivalent to a EUR 6.8 million growth, was mainly attributable to cost of energy for EUR 4.1 million and other costs related to operating personnel travels for approximately EUR 1 million. Let's now take a look to ENAV's total revenue and EBITDA evolution in the first half 2022 compared to first half 2021. Total revenue increased 9.9% year-on-year, mainly driven by enroute and terminal components, thanks to the solid air traffic recorded in the period. This growth was only partially offset by year-on-year balance decrease, which was driven by COVID-19 pandemic impacting last year traffic volumes. Exempt flights contributes for a positive EUR 0.8 million. Not regulated business contributed for a -EUR 2.4 million, while other operating revenue for a -EUR 3.5 million related to a lower year-on-year European financings. It is important to note that enroute and terminal revenue growth will generate an increased cash, an increased cash in for ENAV based on our usual two-month billing cycle, while the balance decrease is not a cash movement, all these resulting in a net positive effect on our cash flow. EBITDA in the first half 2022 stood at EUR 97 million, showing a solid 26.6% year-on-year, with margin at 23.5%, which means 3.1 percentage points better than last year, with the second quarter in line with 2019 second quarter, meaning company performance are back to normal. Growing in both EBITDA and margin is driven by the above-mentioned increase in revenue at a higher pace than the corresponding rise in cost, which is not fully proportional to increase in traffic and the related revenue. Moving to the next slide, we can comment below EBITDA movements. D&A decreased by 5.4% year-on-year, mainly as a consequence of reduced capital expenditure in the recent past. This item is expected to slightly and slowly increase in the coming years as the new ATM platform currently under development will become operational. Provisions and write-downs in the first half were EUR 1.3 million and potentially include, among other items, the write-downs of the total credits related to the Russian customers. As already occurred in the previous quarters, we have a positive financial income and expenses mainly related to the actualization of the previous year's balance credits. Moving now to income taxes, we can see a EUR 9.4 million increase mainly due to the higher taxable income in the first half of 2022 compared to the same period of the last year and the effect of the deferred taxes. As a result of these movements in the P&L, we recorded EUR 27.7 million net profit in the first half, which doubled year-on-year, confirming the back to normal from both regulatory point of view on one side and traffic and the related seasonality on the other side. It is worth noting that the second quarter net profit more than offset the first quarter net loss following ENAV's pre-pandemic P&L quarterly trend, which includes standard traffic seasonality. Moreover, this performance is even more brilliant if we compare second quarter 2022 net profit of EUR 43.1 million with pre-pandemic 2019 second quarter of EUR 37.7 million. In the last slide, we usually summarize ENAV's liquidity and the financial position which, as you can see, remains solid. We closed the first half with EUR 176 million of cash, having additional undrawn credit lines for EUR 294 million, out of which EUR 220 million are committed. Net financial debt stood at EUR 494 million, slightly increasing compared with the net debt of EUR 484 million at the end of 2021. Mainly due to the dynamics of trade receivables and payables related to ordinary operations which reflect ENAV's usual few months billing cycle, based on which, as of the end of June, we did not get cash in May and June traffic. In more detail, the EUR 10 million delta is mainly related to cash in from operations for approximately EUR 16 million, cash CapEx for approximately EUR 36 million, and EUR 9 million reduction of non-current commercial debt. As we said in the last results call, we expect to generate cash in year given the tariff has been right and aligned to traffic expectations for the year, and the actual traffic volumes are even better than the performance plan forecast. Net debt to full year 2021 EBITDA for the first half stood at 2.22 x, compared with 2.70 x reached at the end of the last year. Finally, I would like to announce that we have recently refinanced the EUR 180 million private placement due in the first half of August with a new 12-month tenor term loans for the same amount. With that, we are ready to answer your question. Excuse me. This is the conference call operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. To remove your question, please press star and two. Please pick up the receiver when asking questions. The first question comes from Aleksandra Arsova of Equita. Hi. Good afternoon to everybody. A couple of questions on my end. The first one, you were mentioning that you see you have a very positive outlook on traffic for 2022, and also you will be able to book. Can you hear me? Yes, I understand. Yeah, yeah. Go on. That you will book inflation revenues but inflation balance in the coming months. Do you see room for an upgrade of the full-year 2022 outlook, the one you provided some months ago? Another one on the cost evolution. You had approximately 6% year-on-year growth in cost in the first half. Should we expect a similar growth rate of cost in the second part of the year? What do you see in terms of cost evolution and inflation for 2023 and beyond? A final one, can you give little bit of color on free cash flow generation in this first part of the year? What was the operating free cash flow? It is back to positive. That's all. Thank you. Thank you, Aleksandra. I will give your answer. I mean, your question actually. Hopefully with a good answer. For what concerns the update, updating or not our outlook, we are thinking about it. We actually are waiting for the end of the summer season as we are luckily in these last few years, as you know, is very important. We prefer to wait the end of the summer season and then come out with an update of the outlook, if it's okay. I mean, if it's still a good thing to do. For what concerns the other point you ask for, cost evolution. More or less, yes, we confirm that what we have seen in the first half maybe could be a little bit the same, with just a little adjustment, the same by the end of the year. For what concerns the free cash flow generation, when I explained the slide number 10, I confirmed that EUR 60 million of our cash generation in terms of operational. So yes, let me say that we are starting to regenerate cash in from our core business, and this is a positive thing. You know, we have cash profits that is approximately EUR 36 million that are absorbing cash in this moment. Yes, let me say, the operating cash flow is positive. Okay, thank you. The next question is from John Campbell of Bank of America. Thank you. Thanks for taking my question. I'd like to ask for a little bit more clarification on this so-called inflation balance, which I suppose will compensate ENAV for actual inflation above the level assumed in the RP3 performance plan. I think based on my reading, I was able to find that they compare April 2022 inflation in Italy, which I saw was 6.3%, with the forecast from the IMF, which I think were 1.8%. Does management sort of have any visibility on how much they expect to accrue? Considering it doesn't appear that they accrued any in the first half, is this all going to appear in the second half? Thank you. As you know, the regulatory mechanism foresee that we can cover the inflation for what concern personnel costs and other operating costs. If there is difference between the inflation planned in the tariff and the actual one by the end of the year, we are allowed to adjust with the balance of the difference. Just to give you an idea what could be the amount, you should take EUR 3 million, EUR 3.5 million around for each percentage point of inflation. You have two percentage point inflation between the planned one and the actual one. The planned and the actual one, you should calculate around EUR 6 million-EUR 7 million. Each point is equal to EUR 3.5 million, more or less. Thank you. Will that all be accrued then in the second half? Because it doesn't appear that any was accrued in the first. Yes, definitely. What we normally wait is at least the second half to, you know, calculate inflation, as of now it's too early. We have always and we're still doing the same thing, waiting for the second half to calculate the inflation. Okay, that's helpful. Thank you. You're welcome. As a reminder, if you wish to register for a question, please press star and one on your touchtone telephone. Once again, for questions, please press star and one on your touchtone telephone. We have a follow-up question from Mr. John Campbell of Bank of America. Thanks. I'll ask another question. I suppose ENAV is a heavily unionized company. On the face of it looks like in your first half results, there wasn't enormous or large increases in fixed labor costs. Please, could you provide an update on how any negotiations with unions are going? If ENAV feels comfortable that it can avoid maybe some of the industrial action that airports and airlines are suffering with at the moment. Thank you. Just to clarify this point, the increase of personnel costs is mainly related to the variable part. This is due to cover what is the extra traffic that we need to cover, you know, the traffic we are managing. Just to give you a couple of numbers. If you think the level of traffic in this first six months of 2022 is almost, let me say, 90% of 2019, so pre-COVID traffic. Instead, last year, the same period, same six months, we had -65% compared traffic compared 2019. You can imagine how much is the difference in terms of effort, the people effort. Mainly the cost, the personnel cost is related to the ex... I mean, the extra traffic that we are managing and the variable part, not the fixed part. The fixed part is more or less stable, so it's not impacting. When it comes to labor cost, yes, I mean, we are really talking with our trade unions, and we are going to continue coming back from the summer break in September trying to finalize everything within the year. That's the plan. We will see. Did I answer your question? Yes. I think that suggests. If I can ask a follow-up. I think if we look at the European airports that at least we cover, they feel very comfortable, very confident on summer traffic, and some of them are having to limit traffic. I think they have less confidence and less visibility on the fourth quarter. I don't know if you had any view based on the trends that you're seeing. Is there likely to be somewhat of a softening in traffic in the fourth quarter versus summer beyond what would be seasonal? Yeah, this is a good point. We are talking with our, I mean, with airports, with airlines. Last year's fourth quarter was quite good. The expectation now in this moment, it's not really something easy peasy to say. I mean, what we expect is to have a summer season like last year that will pass to also over September, probably we will have a good October in line with last year. November and December still we have not visibility in this moment. In general terms, it doesn't really affect too much our total, I mean, results in terms of revenue, in terms of traffic management because, you know, the summer season is the period where we almost, I mean, we do most of our revenues and traffic management. That said, at the moment, the forecast also given by Eurocontrol actually confirmed by the end of the year, at least for Italy, to have a 90% level of traffic compared to 2019. Right now we are at 90%. If you look what is the traffic that we're recording these two months in these weeks is very close to 95%-96%. This mean that probably it could be a little bit decreased in November and December, but just will not affect so much the total volume management. This is something that is not easy to tell, I mean, really to try to figure out. Okay. That's helpful. Thank you. We have a follow-up question from Aleksandra Arsova of Equita. Yes, thank you for taking my question again. As a follow-up on the guidance, do you think you will be able to provide a dividend policy update, if you decide, of course, to give an update on outlook and everything, I mean, in the autumn? Second question is on the bonus-malus mechanism. Since we are seeing some operational disruptions all over Europe and partially also in Italy, do you expect that strikes or other activities like that will pose a risk on you achieving the EUR 12 million bonus for the current year? Okay. For what concerns the first question, let me say that, in general terms, we already have a dividend policy that allowed us to, you know, to I mean, what the dividend policy is, we have a floor at 80%. We distribute at least 80% our free cash flow, as calculated in the proxy as you know. But this is a floor, so this already, this dividend policy already allowed us to increase the volume. I mean, yes, the volume of dividend. To say that we don't foresee to change this dividend policy to give any other guideline in the short term, as probably this would be a discussion by the end of the year when we will have the final result for 2022 with the board of director and define what would be the level of dividend that we will distribute. The dividend policy is on hold, and for us it gives us enough flexibility to you know to manage any possible growth increase. For what concerns the second point, our bonus-malus, yes. The bonus-malus at the moment, at the six-month half a year result, we are still in line with our, you know, target to overperform the target, the cost, sorry, the capacity and so the punctuality target that was given to us. We are overperforming. By the end of the year, at the moment, we are still working to get that target. Let me see. We can have a better view right after the summer season because now in summer season the level of complexity and level of traffic is above the peak time, is really important. In some airport that we are reaching traffic that is higher than 2019 peaks. You can imagine how difficult it is. At the moment we still, our target is still to overperform. It's still to overperform the punctuality targets. Okay. Brilliant. Thank you. You're welcome. The next question. Excuse me, sir. The next question from Marco Limite of Barclays. Please go ahead. Hi, good afternoon. I've got a question on your balance sheet policy. You have said that in the second quarter you had a positive operating cash flow. We're aware that starting from 2023 you will start to see the cash impact from the balance accrued over the last, you know, over the pandemic. You know, on my balance sheet forecast, you will quickly get to basically a net zero debt position. I'm just wondering if you can remind us what's your balance sheet position and if you have got a leverage target below which you are happy to start thinking a bit more. Seriously about M&A or extra shareholder return to shareholders. Thanks. Yeah, we confirm our three legs of investment. The first one is to readjust a little bit our financial structure, capital structure. Just a little because as you know, we are now 2.something x our EBITDA. The net debt is 2.17x EBITDA. It's already in a good, let me say, in a good shape and a good position. Just a little bit of adjustment around 2x, 1.5x, 2x. Sorry, in times, not percent. 1.5x, 2x the EBITDA. That's the first leg. The second leg is look for and see if there are some opportunity of M&A, M&A opportunities. Still, if we have opportunities that make sense for us to grow in a not organic way, for example, not related business or to increase to better work with our core business, we will look at this. We are not thinking about like huge acquisition, but thinking some very finalized and very cherry-picking companies. The third leg is instead the dividend. We have already a dividend policy that allowed us to give more cash, more dividend to our shareholders. Thank you. Our shareholders than the one is calculated applying the 80% of our free cash flow generated as the policy. That's the three legs that we are, we think, and we will use to put our money in. You would be happy to pay above 100% in case, you know, in a couple or two years' time you get to net zero net debt position. Would you be happy to pay above 100% of your free cash flow? Looking at what is the, you know, the balance also that we will impact also. Other than the, I mean, the performance of the company, and on top of this we will also have free cash. We have already done in the past that these actions were to pay more than 80% of the free cash flow generated. I don't see why we shouldn't do also in the future. This is something, a decision that will be taken by our board of directors year by year, actually. Thank you. Very clear. You're very welcome. For any further questions, please press star and one on your touchtone telephone. Gentlemen, at this time, there are no questions registered. Excuse me, we do have a follow-up question, last minute from Mr. John Campbell of Bank of America. Thank you. Yes, my final question. Just picking up on a comment you made there relating to potential M&A. In the past, the company's discussed the potential of acquiring a neighboring country's or a small country's air navigation. Is that intention still alive, or are you looking elsewhere? Can you comment on that, please? Thanks. Look, yeah, the deal is always definitely up, still on floor, but the point is to have the opportunity to give these opportunities. It's the opportunity more than see the opportunities that is on the floor and then validate the opportunity and see if it's something that we can do. Yes. Okay. Thank you. Am I going to lose it all? Gentlemen, that was the last question from the conference call. Would you like to make some closing remarks? Okay, fair. If there are no questions, let me please thank everyone who has joined the call. Let me thank you, Paolo, Luca. For further questions, you have our contact Investor Relations. Don't hesitate to contact us. We also take the occasion, the chance to wish you a pleasant summer break. Bye. Bye to all. Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.