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ENAV S.p.A. Financial Statement

Performance Plan approved for the three-year period 2015–2019 which sets out
the actions and targets to be achieved during the reference period. The efficiency
targets provide for the introduction of risk elements to be borne by the provider, thus
ENAV, relating to both traffic and costs. More specifically, the traffic risk mechanism
envisages the sharing of the traffic risk between providers and users of the air space,
for which variations, positive and negative, of up to 2% of actual traffic compared
to plan are fully borne by the providers, while variations between 2% and 10% are
shared, with 70% of these being borne by the airline companies and 30% by the
providers. The cost recovery methodology applies to variations above 10%. Any
positive or negative shifts referring to the traffic risk, results in revenues for the route
being adjusted according to the rules detailed above, using the caption Balance for
the year.
As far as the cost risk is concerned, the possibility of passing on to air space users
the full amount of any differences between the budgeted amounts and the actual
costs incurred1 at the end of the year has been eliminated. These variations, either
negative or positive, are still borne by the providers in their financial statements.
From 2015, these EU regulations also apply to terminal services, which fall under
the performance plan based on different methods, according to the charge category.
Terminal charges are broken down over three categories:
• category 1 refers to airports with over 225,000 movements annually, subject to

cost risk and traffic risk such as en-route services;
• category 2 refers to airports with between 225,000 and 70,000 movements

annually, where there is only a cost risk;
• category 3 refers to airports with less than 70,000 movements annually excluded

from the EU Performance Plan, and where the cost recovery mechanism is
applicable.
Any positive or negative shifts results in an adjustment to terminal revenue according
to the rules detailed above, using the caption Balance for the year.
The Balance for the year is not included in the charge charge until two years later,
while in the current year the balance asset or liability recognized customarily in the
two previous years is transferred to profit or loss through the item Utilization of the
Balance.
Given that the re-charge assets and payback liabilities balances is deferred over
time, in accordance with IAS 18, the parent company measures such revenues at
fair value, discounting them using the average interest rate for which it obtains
funds on the third party market. The adjustment is recognized as a reduction in the
balance receivable or payable to which it refers and as a reduction in revenues for the
year. This amount is released to profit or loss in subsequent years for the portion of
interest income accruing in the period.

186 ENAV - Annual financial report 2015