Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the ENAV first quarter 2026 results conference call. As a reminder, all participants are in listen-only mode, and 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. Fabrizio Ragnacci, Head of IR of ENAV. Please go ahead, sir. Good afternoon, ladies and gentlemen, 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. 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. 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 one month of the conflict in Middle East, service units for en-route market and 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, the 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 at, came in at EUR 5.1 million, and free cash flow was around EUR 41 million, up by 1.5x versus previous year. Finally, let me remind you that May 14th, 2026 the AGM will appoint the new board of directors. Let's move now to the operating 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 EUR 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 EUR 13.6 million, driven by the solid growth of en-route and the stable contribution from terminal. Balance N-2 impacted positively for EUR 2.7 million as a result of negative Balance N-2 for EUR 37.3 million in Q1 2025, and negative EUR 34.6 million in Q1 2026. The non-regulated business contributed with EUR 3.4 million, mainly driven by commercial activities in India, where we have recently opened our branch. Balance for the period impacted for a negative EUR 2.2 million as a result of negative balance for the period for around EUR 0.2 million in Q1 2025, and a negative EUR 2.6 million in Q1 2026. Moving to cost slide, on slide five. In Q1 2026, total operating costs reached EUR 191 million, up by 4.9%, mainly driven by the increase in personnel costs. Personnel costs stood at around EUR 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. Higher variable component, mainly driven by high 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, 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 six on EBITDA. EBITDA came in at EUR 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 acceleration in the deployment of commercial activities in a non-regulated domain, particularly in India. Cost evolution is in line with the plan expectations and confirms the expected trajectory for 2026. Moving now to slide seven on the profit and loss statement. D&A and provisions were broadly stable year- on- year, with increase in depreciation broadly offset by lower provisions. Net financial expenses worth EUR 1.2 million, down by approximately EUR 1 million versus previous year, mainly due to lower debt and lower interest rates. Group net income came in at negative EUR 22.8 million, in line with the business seasonality. Let's move to cash flow and net debt on slide eight. Net debt for the period stood at EUR 99.4 million, down by EUR 38.1 million versus December 31st, 2025. Cash flow from operating activities amounted to EUR 65.9 million, and the investment in period for EUR 21.2 million. Free cash flow in Q1 2026 was equal to EUR 41.4 million, marking 1.5x increase versus Q1 2025, confirming the group's solid cash generation profile. Free cash flow for the full year is expected at EUR 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 the our business, as the summer season could be impacted by shortage and/or spikes in price for jet fuel. The high cash generation profile of our business is confirmed with a 1.5x increase year on year of free cash flow and around of EUR 250 million expected for the full year. Finally, let me remind you that the next AGM, called for May 14th, 2026 will appoint the new Board of Directors and approve the DPS of EUR 0.29 share for 2025. Thank you. Now let's open the Q&A section. Thank you. This is the chorus call conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. First question is from Carlos Caburrasi, Kepler Cheuvreux. Hi Luca Hi Fabrizio thank you for the presentation and for taking my questions. 2 from my side. First, I wanted to go back to the jet fuel situation. Given that some airports in Italy already announced, already introduced, sorry, 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 EUR 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 the tone from our lines 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 quite good. We have recorded a growth of around 3% the number of flights. We don't have the service unit, April service unit, published yet by Eurocontrol. You know, still, the flight as in April was quite good. It 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 risk, you know, of impact from the shortage and, or an increase in price of jet fuel can, you know, always happen. It seems to be for also from the communication, I mean, the press releases of some airline, these are public, they seems to be not particularly impacted, at least for next two, three months. We heard from either way something Wizz Air. I mean, there are some public press release that they say that they shouldn't have particular impact for the next few months. We are, at the moment, positive and confident, even if, you know, it's a very particular period, so we have to wait 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 more concern, the second question, I think it's, you know, it's correct to wait a couple of days where, you know, as I said, the new AGM will appoint the new board of director. Then the strategy will be, you know, released actually, or some change of the strategy to be released later on. No particular answer on this point. Just wait. Okay, good. Thank you, Luca. If I may just consider that within the regulatory period of five years, scenario agreed with the European Commission. For what concern the regulated business, you know, the regulated business, as the word say, is regulated. Even if there is some possible to move in, but, you know, the main scenario agreed with European Commission, with the regulator is something that is some way a picture, a position framework. Thank you. It's a framework that you more or less stay in. This, in some way, stabilize some, at least the tariff and some figures for the regulated business. Okay, good. Thank you, Luca. You're very welcome. Next question is from Aleksandra Arsova, Equita. Hi, good afternoon. Thank you for taking my questions and for your presentation. A couple of questions on my end. The first one is on traffic again. If I remember correctly, at the end of March, Eurocontrol published, released its latest forecast for traffic, let's say forecasting for Italy, a 5% growth in traffic for 2026. I was wondering if you can provide some 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 plus 6% roughly increase in your P&L costs. From that time, till now, you closed the new labor contract, 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, by the end of the, I mean, last March, published the new forecast for Italy, for the other European countries, that increase what is the forecast for 2026 service unit for ENAV, actually for Italy by 1 percentage point. They move from 1.1, that is the one that is the, you know, by 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. It, 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 happening, I mean, what is going on with the Middle East war and crisis. The open-ended, what is the high scenario and the low scenario, they're in a range in a big range. From the total impact may go from a positive, still a positive low scenario at an increase of 1.2%, through a base scenario of 5.1%, that the one we normally take as in consideration, but it can also get to 9.2% increase. This magnitude is more related to the fact there's still some, I mean, some other analysis that Eurocontrol has to do, and still probably. That's the reason why they take this big magnitude, 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. We as said, we prefer to wait the next month in the summer season to, I mean, to understand well what will happen in the next weeks, just to be sure to be very, I mean, to have all the element to have our forecast confirmed. For one, for what concern the cost evolution, yes, let me still 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 cost. The current year-end forecast is built in line with the, you know, what we said before, I would say, with the Performance Plan in 2025. If you look the cost evolution 2025, it is what we expect also by the end of this year, if nothing, you know, big change will not apply. The impact of, even the impact of the renewal of the staff contract has been considered in what I'm just said. Take that number, take a number close to the performance report in 2025 that I remember is, I guess it was increased 6.4% maybe. Something between this value. Okay. Thank you. Very clear. Yeah. Next question is from Amal Patel, UBS. 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 EUR 250 million free cash flow guidance you set, 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. Yes, Amal. For what concern the first question, let me say that the target we have considered is, I mean, 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 target, very in line. Let me say it, and now we are, I mean, in the first quarter, we are with a good result, as you may have seen from presentation, much higher than that value. Even the Eurocontrol is 5.1. That cash flow generation is related to these, this value. At the moment we feel, I mean, at least from the information we have now, we feel comfortable to confirm that cash flow generation, looking the, you know, the evolution of traffic in these weeks. For what concern the strike that we had, it just a minor trade union that didn't sign. I mean, all the different trade unions signed the contract. At least it was just one minor that, from what I knew didn't sign, it was just a way to show that they didn't agree with this renewal. It was just a local, if I am 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 for what is the information came to me, with a minimum impact on the service. Okay. Thank you very much. For any further questions, please press star and one on your telephone. Next question is from Luca Bacoccoli, Intesa Sanpaolo. 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 cost. 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 growth, non-regulated revenues growth, which was 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, so new contracts are coming in, or there's a, let's say, a structural underlying trend behind this growth? Thank you. See my performa- Thank you, Luca. We'll be in a second with you. Okay, Luca, sorry. We just had to check a couple Just to be sure to have understood your question. For what concern the service unit in March, above all the, above all the overflight, you know, March was the first month after the, the Middle East crisis started. There was a kind of let me say, a little bit of not panic, but just rerouting and readjusting everything. There was a lot of movement on some flight from one part to another part. There was a lot of rerouting. They adjust by the end of March. You know, in April above all, they readjust to the or let me say, a normal situation. Still affect from the closing. I mean, the fact that the Iranian airspace is closed, so there's most of some flight 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 Balkan area. The good thing is, we still continue to perform very well in term of delay. We are still the best in, you know, in class in term of result, I mean, the quality of services. We don't give delay. This attract traffic in our overflight in our airspace. This is one reason why we are still having a very important part of the overflight on our figures. Yeah. If I'm right, instead for what concern the second question in terms of, you know, the agreement with the personnel, this is a EUR 5 million impact on cost for what concern, you know, the extra flexibility that we have asked to our controllers. For what concern instead, what was the last one? Non-regulated growth. The non-regulated growth. We confirm at the moment what is our guidance. As said, we foreseen, we forecast to get EUR 62 million revenues from non-regulated business, and that is actually confirmed at the moment. Luca, it's clear. Yeah. Yeah. Yes, yes. Thank you very much. You're very welcome. For any further questions, please press star and one on your telephone. There are none yet, gentlemen. There are no more questions registered at this time. Thank you. We actually have a last one, which has come through our inbox at ir@enav.it. You know, the question is on the 2026 target. 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. Okay. Thank you, Fabrizio. The reason is mainly related to the scenario. Until the Middle East crisis does not stabilize or resolve, we believe it is really difficult to define which traffic forecast can be considered reliable. This is above all for the summer season. We prefer to postpone the outlook for the year to the first half release of next August. Further to the potential volatility on traffic, a postponement to August was also preferable also from a governance perspective. On May 14th, 2026 only in a two 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, you know, the two main reason why. Thank you. 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. Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.