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ENAV S.p.A. Financial Statement

• the consolidated income statement is prepared using a classification based on the
nature of expenses;

• the consolidated statement of other comprehensive income which include the
result appearing from the consolidated income statement, the changes to the items
in the net consolidated changes in equity especially from the actuarial gains and
losses on employees’ benefits, the changes to the fair value of cash flow hedging
instruments and the gains and losses arising on translation of foreign subsidiaries’’
financial statements. The balance sheet identifies the items that will be and not be
subject to recycling to the income statement;

• the consolidated statement of changes in equity;
• the consolidated cash flows statement was prepared using the indirect method.
The consolidated financial statements have been prepared under the historical cost
convention, except for those items for which fair value measurement is obligatory.
Comparative figures for the previous year are provided for each item of the financial
statements.

3. Accounting policies

The most significant accounting standards and measurement criteria used in the
preparation of the separate financial statements are detailed below..

Property, plant and equipment

Property, plant and equipment are recognised at the cost of purchase or production,
net of accumulated depreciations and any impairment losses. The purchase or
production cost includes expenses directly attributable and necessary to operate
the asset for the purposes for which it was acquired In the event of significant
overhauls or maintenance, the cost is included under the plant or machinery’s book
value, where the criteria for recognising this have been met. All other repair and
maintenance costs are recognised in the Income Statement when incurred.

Depreciation is charged on a straight-line basis, from the time the asset becomes
available and is ready for use, in relation to its estimated useful life for the company.
This is reviewed annually, and any changes, if necessary, are accounted for on a
prospective basis. Depreciation takes into account any residual value on the assets. If
a depreciable asset is made up of distinctly identifiable elements whose useful lives
differ significantly from those of the other components of the asset, depreciation is
calculated for each of these components separately using the component approach.
The following table sets out the estimated useful life of the main categories of
property, plant and equipment:

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