Annual Report 2020 AEROPORTO G. MARCONI DI BOLOGNA S.P.A. Consolidated Financial Statements of Aeroporto Guglielmo Marconi di Bologna Group and Financial Statements of Aeroporto G. Marconi di Bologna S.p.A. at December 31, 2020 This document is a courtesy translation from Italian into English. In case of any inconsistency between the two versions, the Italian original version shall prevail. CONTENTS Letter from the Chairman 3 Ownership of the Parent Company Aeroporto Guglielmo Marconi di Bologna S.p.A. 6 Board of Directors 7 Board of Statutory Auditors 8 Auditing Firm 8 Directors’ Report at December 31, 2020 9 Consolidated Financial Statements at December 31, 2020 66 • Statement of Consolidated Financial Position 67 • Consolidated Income Statement 68 • Consolidated Statement of Comprehensive Income 69 • Consolidated Cash Flow Statement 70 • Statement of Changes in Consolidated Shareholders’ Equity 71 Notes to the Consolidated Financial Statements at December 31, 2020 72 Statement of the Consolidated Financial Statements pursuant to Article 154 bis of the CFA 139 Auditing firm report 140 Aeroporto G. Marconi di Bologna S.p.A. Financial Statements at December 31, 2020 146 • Statement of Financial Position 147 • Income Statement 148 • Statement of Comprehensive Income 149 • Cash Flow Statement 150 • Statement of Changes in Shareholders’ Equity 151 Notes to the Financial Statements at December 31, 2020 152 Statement of the Financial Statements pursuant to Article 154 bis of the CFA 221 Report of the Board of Statutory Auditors 222 Auditing firm report 230 Aeroporto Guglielmo Marconi di Bologna S.p.A. 2 This document is a courtesy translation from Italian into English. In case of any inconsistency between the two versions, the Italian original version shall prevail Dear Shareholders, After several years of uninterrupted progress and a record year for traffic and earnings growth in 2019, 2020 was truly an “annus horribilis” for Bologna Airport and the aviation sector. As COVID-19 spread across the globe at the beginning of 2020, forcing governments to impose contagion containment measures and restrict movement, traffic at Bologna Airport came to a near-total standstill, with just one passenger flight a day to Rome for a long period, from March to May 2020. At this time Bologna Airport was one of the few airports allowed to remain open in Italy, by express provision of Ministerial Decree No. 112 of March 12, 2020. On the other hand, during the first few months and those that followed, a large number of cargo charter flights were arranged to import medical equipment, allowing Bologna Airport to provide a vital public service. A little more than a year on from the outbreak of the pandemic, we can safely say it has been much more than a simple "setback" and has instead resulted in the worst global crisis experienced by air transport in modern times. Tourism, air transport, and the aviation sector as a whole have been hit the hardest, and we cannot begin to estimate the impact the pandemic will have on the global economy, given the persistent uncertainty surrounding its duration. Today, we can at least highlight the effects of the pandemic on air traffic, our operating results for 2020, and on the equity-financial structure of both the Company and the AdB Group at December 31, 2020. During a year in which international and European passenger traffic returned to levels last seen over 20 years ago, with traffic falling by 65.9% and 69.9% respectively compared to 2019, and Italian traffic falling by 72.6%, Bologna Airport served 2,506,258 passengers against 9,405,920 passengers in 2019 (a decrease of 73.4%), reducing airport traffic to levels not seen since 1997. Cargo traffic fared better, with an 11.2% decrease compared to 2019, confirming that the pandemic had a lower impact on the sector. The average decrease recorded in Italy was 23.7%, demonstrating that the freight sector was more resilient than the passenger sector. The figures set out above highlight the magnitude of the pandemic’s impact on the AdB Group’s business and show that comparison with the previous financial year and with objective indicators such as service quality are not meaningful, so much so that ENAC halted customer satisfaction surveys in the second quarter of 2020, and the Services Charter for 2020 was not published. The Group is therefore reporting results which are significantly down on 2019: consolidated revenues have fallen from Euro 125 million to Euro 67 million (-46%, or -65% including revenue adjusted for the revenues from construction services linked to the higher investments made), consolidated EBITDA has fallen from a profit of Euro 45 million to a loss of Euro 4 million and the result for the year has dropped from a profit of Euro 21 million to a consolidated loss of Euro 13.6 million The primary differences between the two years are due almost exclusively to the dramatic reduction in air traffic and revenues as a consequence of the COVID-19 pandemic, mitigated only partly by the various cost-containment measures implemented by the Group in response to the crisis. Aeroporto Guglielmo Marconi di Bologna S.p.A. 3 This document is a courtesy translation from Italian into English. In case of any inconsistency between the two versions, the Italian original version shall prevail For this reason, rather than commenting on the operating data for 2020, we will seek to report on the actions taken by the Group to contain the effects of the collapse of air traffic, taking into account the fact that the situation deteriorated very quickly, changing almost by the hour, providing us with very little time to react and respond and affording us very little visibility concerning the future. Our efforts focused primarily on measures to protect the health and safety of our employees and passengers by minimising human contact. We asked our many non-operational employees to work from home, enforced social distancing, and implemented sanitation measures to prevent the spread of the virus among the airport community as a whole. Confirming the Group’s commitment to adopt measures to reduce as much as possible the risk of infection, Bologna Airport was the first airport in Europe, and among the first globally, to receive Airport Health Accreditation from ACI World (ACI = Airport Council International). The Group also attempted to contain costs by activating the Extraordinary Temporary Lay-Off Scheme for all employees of the Parent Company and its subsidiary FFM. In addition, the Group renegotiated contracts with suppliers, closed operational areas to save on utilities and services, and cancelled or postponed non-strategic and/or deferable activities. Investments were also evaluated and analysed to identify new priorities and phases in the action plan, to perform the alignment required with the updated sector scenarios; the aim was to agree with ENAC an optimum and sustainable development plan in light of the air traffic situation At the same time, during 2020 the Group has responsibly and enthusiastically persevered with the commitments it had already made, undertaking a very large volume of investments totalling Euro 33 million, compared to Euro 19 million in 2019. Among the many investments made, mention should be made of the structural and functional redevelopment works carried out on a section of runway, necessitating the closure of the airport for 10 days in September, during which a few of the works planned for 2022 were also brought forward to make the most of the reduction in air traffic and to prepare for recovery. At the same time, the Group actively worked to try to ensure particularly favourable temporary conditions with a view to safeguarding the commercial operations and passenger services segment, as well as renewing structures and contractual terms to support the future recovery. The Group addressed the significant pressure on liquidity caused by the drastic reduction in income following the decline in activity and the payment extensions granted to clients in severe financial difficulties by seeking new sources of operating funding. Two loans were finalised with a SACE guarantee for a total of Euro 58.9 million. Towards the end of this exceptionally difficult year, hope appeared on the horizon. COVID-19 vaccines were made available, in amounts that we hope will continue to increase, thanks to an enormous collaborative, technological and financial effort around the globe and through cooperation between public and private entities. In addition, positive news for the aviation sector and Bologna Airport arrived in the form of a provision within Italy's 2021 Budget Law. An important and constant awareness campaign run by Assaeroporti and various management companies saw the precious contribution of local and national institutions, who were able to bring the necessary requests to the attention of the Government. Aeroporto Guglielmo Marconi di Bologna S.p.A. 4 This document is a courtesy translation from Italian into English. In case of any inconsistency between the two versions, the Italian original version shall prevail The Group is managing this crisis as carefully and responsibly as it can. Current and future actions, as discussed in detail below, together with the Group's solidity, will allow us to recommence operations with a renewed sense of strength, when the crisis is finally behind us. I extend my thanks to all our Group’s employees who have performed their respective duties at every level of the company and have thus contributed to tackling the enormous challenge that the pandemic has set in our path with resilience, energy, and skill. To conclude, the financial statements of the company Aeroporto Guglielmo Marconi di Bologna Spa, which we present for your approval, report a loss of Euro 13,963,340.73, which the Board of Directors proposes to carry forward.