Good afternoon, ladies and gentlemen, and welcome to our Investor Day. I'm Daniele Tutino, Head of Investor Relations. Today we are delighted to give you a clear picture of our 2023 results, along with an overview of the strategic opportunities we are seeing in non-regulated markets. Our CEO, Pasqualino Monti, will take you through the strong progress achieved during 2023. Our CFO, Luca Colman, will take you through the full year 2023 results. And then our CEO will provide you the 2024 outlook, along with our strategic view on the new opportunities in non-regulated markets. And then we will add two separate questions for the Q&A session. The first one will be dedicated to financial analysts and investors. The second one will be for the press. Before I hand over to our CEO, we start by showing a short but very impressive video on ENAV's activities.
Enjoy the video and the rest of the event.
Thanks, Daniele, and good afternoon, everybody. Thank you for joining us today. It's a pleasure for me to present our 2023 results and provide to all of you our vision on the new opportunities we are seeing in the non-regulated markets. Starting from the 2023 result, 2023 was an important year of delivery, solid execution, and we are pleased to report today a strong set of full-year results. We have continued to deliver strong results, making the group stronger, more resilient, and sustainable. Importantly, as a group, we are in a stronger position to capture new opportunities in non-regulated markets. In 2023, air traffic in Italy stepped up at 197.2 million number of passengers, with an increase of 19.8% compared to 2022 and 2.1% compared to 2019, now leaving behind the effect of the pandemic.
Given this increase in air traffic, the number of flights managed during 2023 by ENAV recorded a growth of 10.7% compared to 2022 and exceeded the traffic levels managed in the pre-COVID period. In comparison with 2019, the growth of flights in Italy was 1.5% higher than the result of the Eurocontrol Member States, where, again compared to 2019, the average figure at the end of 2023 was still negative at -8.5%. The increase in flights led to a growth of service units, with a result at the end of 2023 of +11% compared to 2022 or +5.7% compared to 2019. This is more and more important, bearing in mind that 2019 was a record year for ENAV, with traffic levels never recorded before. In 2023, we have done better.
In terms of regulation, the current Italian Performance Plan will be valid up to the end of 2024. We are now under negotiations with the regulator for the next regulatory period that will cover 2025-2029. I'm glad also to confirm that ENAV remained the fourth largest Air Navigation Service Provider amongst Member States, subject to the EU performance scheme, and one of the best performers in terms of quality and safety of service. This year, we have managed such a significant volume of traffic, with our usual strong commitment guaranteeing both the highest levels of safety and quality, as demonstrated by the excellent results in terms of punctuality, with a value equal to 0.01 minutes of average delay per assisted flight. Therefore, exceeding the target set for the year equals 0.04 minutes, and this has led us to reach the target performance on punctuality.
Moving to the non-regulated business, we recorded a single-digit growth year-on-year, mainly driven by the development of our business in international markets. On the ESG profile, we approved the group sustainability policy. With sustainability at the center of our business strategy, we reduced our Scope 1 and Scope 2 emissions by more than 85% compared to 2019, and we received an A- score from CDP Climate Change. As you know, we are the first ANSP to achieve carbon neutrality, compensating the non-reducible emissions through the purchase of carbon credits. Investments remain a priority for our group. ENAV guarantees safety and punctuality to the millions of passengers who fly in Italian skies, contributing to the growth of national and European air transport with efficiency and innovation.
We are very focused on continuing to invest in our core business, and we will continue as the technological innovation and the digitalization of systems are at the heart of our industrial strategy for the sustainable evolution of airspace infrastructure. The current investment plan envisions about EUR 1 billion of investments from 2022 to 2031, and we are reconfirming this target, with 2023 CAPEX exceeding EUR 110 million, up 13% compared to the 2022 level. During 2023, we integrated our approach systems into the area control centers of our many airports, and alongside, we implemented the innovative Arrival Manager System, which was enforced last year in Rome Fiumicino, Milan Malpensa, Milan Linate, and Bergamo Orio al Serio Airports. This will enable a significant reduction of CO2 emissions from arriving airlines. Last but not least, we are still testing the new ATM platform for advanced tower automation.
All this translates into a regular financial performance as we have grown our top line, with revenues exceeding EUR 1 billion for the first time in the history of the group. And this is very impressive, growing up 5.9% compared to 2022. And we also continued to improve our profitability with EBITDA up 10.2% to EUR 300 million, the group's second highest result ever, and a very strong margin at 13%, up 1.2% versus 2022. EBIT stands at EUR 173 million, up 16.4% versus 2022, and the EBIT margin increased of 1.6% at 17.3%.
And the bottom line also shows strong progresses at about EUR 130 million , up 7.9% versus 2022. And all these extraordinary results have been reflected into a very strong remuneration for our shareholders. We will distribute a very strong dividend equal to EUR 0.23 per share, but we will cover it later on in a few minutes.
And now let's see our results more in depth. As I've already presented, traffic had a very brilliant performance in 2023, and route traffic in terms of service units reached the top level of 10.6 million, up 11% versus 2022, and up 5.7% versus 2019. Terminal traffic ended 2023 slightly below EUR 1 million, up 10.9% versus 2022, and recovering 98.2% versus the 2019 level, with terminal zone three completely recovering and up 3.1%. The recovery versus the 2019 level, which is completed for route traffic and nearly completed for terminal traffic, is very important to us because 2019 was a record year for ENAV, with traffic levels never recorded before. The very strong level of traffic didn't stop our commitment to do better.
Year-over-year, we have guaranteed the highest level of safety and quality, with punctuality at 0.01 minutes of average delay per assisted flight, exceeding the target set for the year at 0.04 minutes. In terms of revenues, the total volume exceeded EUR 1 billion for the first time, with an increase of 5.9% compared to 2022, mainly driven by the strong traffic performance, also supported by the high single-digit growth of non-regulated revenues, which at the end of 2023 are equal to EUR 43 million. Very strong results also at the EBITDA level, reaching the group's second highest result ever, growing year-on-year at 10.2% at EUR 300 million and with a very strong margin at 30%. The net results landed at EUR 130 million, up 7.9% versus 2022. CAPEX exceeded EUR 100 million, up 13% compared to the 2022 level.
We remain very focused on continuing to invest in our infrastructure, which represents an excellence in the Italian landscape. Our financial structure continues to be very safe, and this year we have also reduced our leverage by more than 20%, with net financial debt at EUR 322.3 million and the net debt on EBITDA ratio slightly in excess of one time. Let me now provide some details on the progress performed at the ESG level. With regards to sustainability, I'm proud to show you our 2023 achievements. In 2023, we have approved our group sustainability policy, and we have completed the evaluation of our core suppliers using the Sustainable Supply Chain Management platform. In the field of technology and innovation, we carry out several activities.
We integrated our approach system, APP, into the area control centers of other airports, and alongside, we implemented the innovative Arrival Manager System, which was enforced last year in the main airports. This will enable a significant reduction of CO2 emissions from arriving airlines. Last but not least, we are still testing the new ATM platform for advanced tower automation. Elevating people to a corporate priority is the most valuable investment to build a sustainable organization. So we elaborated a new recruiting tool to assess the level of sensitivity of newly hired resources to ESG issues. On the environmental front, I'm pleased to report that we reduced our Scope 1 and Scope 2 emissions by more than 85% compared to 2019. This will not stop us from fighting climate change.
In fact, we supported airlines with our Free Route technology in reducing carbon emissions by over 229 million kilograms of CO2 in the year, and we installed the new photovoltaic systems in our site to increase self-generated energy from renewable sources. I'm also pleased to inform you that ENAV obtained a high ESG rating in 2023. CDP Climate Change awarded ENAV an A- category score. In our sustainability plan for 2024, we defined new challenging targets such as the integration of the APP in additional airports and the replacement of current service cars with electric, hybrid, and plug-in vehicles up until 8% of total. With this, I leave the floor to Luca for a detailed view of our 2023 results.
Thank you, Pasqualino. Good afternoon, everybody. Now let's move to the traffic performance achieved during 2023. As Pasqualino said, it was a very strong performance. 2023 en route traffic was up 11% year-over-year in terms of service units, with international and overflight traffic growing 17.4% and 12.3% respectively. This robust result was fueled by a combination of a successful traffic trend for the entire year and a widespread increase in travel demand. National traffic marginally declined at -2.4% year-over-year, as it has already recovered pre-pandemic volumes last year, earlier than the other traffic components. In terms of mix and the pie chart, you can see, as overflight traffic, which is the most profitable for us, accounts for 44%.
Here, the performance was driven by an increase of flights in all destinations, with a prevalence of intra-European flights compared to those related to the Europe, Africa, and Europe-Asia connections. In the last quarter of 2023, traffic showed a strong growth at 11.2% versus the last quarter, 2022, driven by an extended summer season. In the first month of 2024, traffic trend is progressing with an impressive tenor, as confirmed by last year's control data showing a 14.3% increase versus February 2019 and 10.6% compared to February 2023, always in terms of service unit. Now let's see the performance of terminal traffic. Terminal traffic also showed a strong performance. In terms of service units, terminal traffic increased by 10.9% year-on-year, showing a generally positive trend throughout all three charging zones. This growth was mostly the consequence of a strong traffic recovery and a rise in travel demand.
In terms of destination, the international component representing 66% of the total traffic increased by 18%, while the residual 34% related national traffic remained stable year-over-year, having recovered pre-pandemic levels ahead of the other component. This is the same dynamics that we have seen for air traffic just the slide before. Traffic volumes for 2023 compared to 2019 were recorded an almost complete recovery by 98.2%, with charging zone three showing a full recovery of 3.1%. In the last quarter, 2023, also terminal traffic showed a strong growth at 11.5% versus the last quarter, 2022. Now move to the main element of the P&L.
As Pasqualino already commented, the level of revenues in 2023 reached EUR 1 billion for the first time in the history of the group, growing up 5.9% compared to 2022, as a result mainly of a strong traffic performance en- route and terminal increase by 7.2% and 9.3% year-on-year. Not regulated business reported an increase of about 8% on the back of the rising activity in international markets. The balance contribution in 2023 was negative EUR 28.1 million. I remember that in 2022 it was negative EUR 14.8 million. As you know, as per our regulation, we do account for two different kinds of balance. The first one is the balance of the year. This is generated each year, and it could be revenues or costs depending on the delta between actual and the performance plan figures of various components like traffic, inflation, and so on.
The second one is the balance reversal, or also called balance n- 2, that refers to the cash ins or cash out, always through the tariffs, related to the balance generated in the previous year. So coming back to the first one, so the balance of the year, this is the one related to 2023 is positive and accounts for EUR 77.7 million. It's mainly related to EUR 62.5 million for inflation, considering that the inflation rate reported in January 2024 was 5.9%, is higher than the figure forecast in the performance plan, 1.15%. Then we have EUR 15.2 million coming from the recovery of higher interest rates compared to the one planned in the performance plan. And this is a new positive balance for us. I would say a very good positive balance for us.
Then we have EUR 10.5 million of bonds capacity related to the better than targeted result in terms of punctuality at 0.01 minutes of average delayed per assisted flight, as Pasqualino said before, exceeding the target set for the year at 0.04 minutes. And last one is for EUR 7 million balance for charging zone three related to the cost recovery mechanism and EUR 1 million for charging zone one for the traffic risk mechanism, as the level of service units were lower than the figure in the performance plan. All this positive balance was offset by a negative one of EUR 16.3 million, mainly linked to the EU grants and a lower level of depreciation. Instead, the balance reversal in 2023 accounts for EUR 100.4 million.
It is a negative balance as we have cashed in during 2023, and it mainly refers to the first tranche of the balance accrued in 2020 and 2021 and cashed in through the tariff, starting from January 1st, 2023. Let me remind you that it will be recovered in five years for the en- route and terminal charging zone one and two, while seven years for terminal charging zone three. Total operating costs accounted for EUR 700 million, up 4.1% or EUR 27.8 million year-on-year, mainly due to the increase in personal costs. As you can imagine, this is correlated to the stronger level of traffic management during the year.
Staff costs are up 4.5%, mainly due to all the action put in place to manage the high level of traffic, such as higher air traffic controller overtimes, MBO adjustments, and an agreement with the unions allowing higher flexibility on operative staff rotation during the summer season. These components drove up variable remuneration by EUR 13.1 million year-over-year. Fixed components of the remuneration are up EUR 2.4 million due to the increase in headcount for 880 units, always at the group level, but they are mainly controllers and technicians. Social Security contribution grew in the full year by EUR 3.8 million due to the above-mentioned increases. Other personnel costs increased for about EUR 3 million related to the renewal of health insurance contracts for staff and the redundancy incentives.
For what concerns other operating expenses, the increase by 3.1% equal to EUR 4.9 million is mainly due to the higher pass-through costs for Eurocontrol contribution at EUR 6.7 million and other minor costs, partially offset by a reduction in energy costs for EUR 9.2 million. Finally, the capitalized internal works increased by 5%, up EUR 1.4 million, mainly due to group personnel activities in investment projects. Now let's see the items below EBITDA. EBITDA stood at EUR 300 million with a solid increase year-on-year, benefiting both from the strong traffic volume reported in the period and the strong moves acted to contain operating costs, mainly the staff expenses, as we said before, whose increase came from the traffic performance. D&A stood substantially in line with the year-on-year, with some provisions for potential liquidations. EBITDA is at EUR 172.7 million, up 16.4%.
Moving down, net financial expenses are equal to EUR 11.2 million, with a significant increase of financial expenses due to the higher curve of rates, partially offset by financial income, primarily coming from the balance actualization mechanism and the positive financial liabilities related to the renegotiation with some banks aimed to reduce basis point exposure on specific financing. Taxes are up 5.4%, equal to EUR 48.7 million due to the higher taxable income. The bottom line is at EUR 112.7 million, reflecting the standing performance of the year. Moving on the cash flow, the liquidity and the financial position at the end of December 2023 remain very strong, with EUR 225 million of cash and additional undrawn credits line for EUR 199 million, out of which 150 are committed.
Net financial debt stood at EUR 322 million, decreased by EUR 85.6 million compared to the net debt of EUR 407.8 million as of the end of December 2022. More specifically, the main components of the change in net debt are net cash in from operation for EUR 210.6 million, cash out for EUR 71.6 million related to the capital investments, a cash out flow of EUR 2.2 million related to 500,000 Treasury stocks buyback performed between January and February 2023 for the management LTI, and a dividend payment for EUR 106.5 million in October 2023. As a result of these changes, net debt on EBITDA ratio at 1.07 x decreased compared with the end of 2022 that it was 1.5 x. Let me now comment on the evolution of the shareholders' remuneration in the last 10 years and the 2023 dividend proposal.
Today, we are announcing the highest dividend in our history, as Pasqualino has already anticipated. I'm glad to confirm, after our outstanding performance, that the Board of Directors resolved to propose to the annual general meeting to distribute a dividend in relation to the financial year 2023 for a total amount of EUR 124.5 million, equivalent to 0.23 EUR per share. This is the greatest dividend distribution in ENAV history, representing a 17% increase over the previous year, and comes from the application of our dividend policy in the measure of 95.2% of the free cash flow as per the dividend policy itself and of approximately 90% of the 2023 real free cash flow that I remember is EUR 103.9 million. Record date will be 28th of May 2024, with payment at 29th of May 2024.
With that, I hand the call back to Pasqualino, who will comment on our 2024 outlook. Thank you.
Thanks, Luca. Now let me announce the outlook for 2024. On traffic figures, we are confirming the latest Eurocontrol estimates for Italy, with traffic expected to reach 11.3 million service units for en- route in 2024, with an increase of 6.7% versus 2023. In terms of revenues, we are targeting a mid-single digit increase year -on -year, while for non-regulated revenues, we are targeting a double digit increase year -on -year. EBITDA is expected to increase by a mid-single digit growth year -on -year, and CapEx is planned to be at about EUR 120 million. Now let's move to the second part of today's presentation. I want to provide to all of you our view on the opportunities we are seeing in the non-regulated markets.
We have decided to plan this event to share with you our thoughts, and I'm very pleased to have this chance to present personally our ideas. As you know, the negotiations regarding the performance plan and the tariffs for the period 2025-2029 are currently underway. Once the new performance plan will be approved approximately by the end of this year, we will release a full industrial plan, also including these strategic guidelines we are presenting today. With the support of our consultants, we have started to evaluate if ENAV could extract more value for its shareholders in non-core business. We would like to share with you the pillars of this new strategy before moving other steps. We see strong upside in non-regulated markets that won't put at risk our mission at all while providing strong value creation for our shareholders.
We have in mind our ambitions, but we will move our steps only if value creation will be granted. We are currently evaluating different opportunities on the back of the strong support from our consultants. We have highlighted some markets, and in some of them, we are already present or we are already leaders, and here we will progress. For other markets, we have started to look around, supported by our consultant, to understand what opportunities we are able to seed because some of these have excellent growth prospects and have interesting numbers. We are narrowing down the options. Our priority will be also to maintain a solid financial structure. The results of these strategic moves will turn into a significant remuneration for our shareholders, in addition to the strong full year 2023 dividends proposed to the AGM. Now let me start from what ENAV is today.
ENAV is the sole provider of air traffic control and navigation services in Italy. ENAV is confirmed as the fourth largest ANSP amongst the European Union Member States subject to the EU performance scheme and one of the best performers in terms of quality of service. We have already presented our solid full year 2023 results and the solid operative and financial performance driven by the strong exposure to the regulated business. It continues to be the pillar of our growth, being firmly anchored to the current business model, which provides strong protection, high predictability of revenues, and cash. I don't want to dwell again on the key figures of our strong full year 2023 results that we have already covered in the previews section on the presentation. But the solidity of our numbers is clearly here presented. This is a very excellent starting point.
What today ENAV is, we remain in the future as well. As the core business is core for us, and we will remain core. As you know, the current Italian performance plan will be valid up to the end of 2024. We are now under negotiations for the next period that will cover 2025-2029. This is the reason why a full industrial plan will be released and presented to all of you once the performance plan will be defined and approved. But today, we are now focusing on the opportunities we could catch in non-regulated markets. Core business remains core. It offers great protection but limited growth as it is linked to regulation set at European level.
We want to create additional value for our shareholders, and the upside could be exploited, leveraging on our capabilities and exploiting markets where we are already present or eventually in others that we are currently evaluating as options. We will move these steps only if value creation will be granted and maintaining a solid financial structure while providing a strong remuneration for our shareholders. But let me explain how we will follow this path, highlighting the strategic framework we have clear in our minds. Core business remains core. Let me start from the main pillar of our strategy. The industrial fundamentals will remain unchanged, and the regulated business will continue to be the solid driver of the group's performance as reflected in the strong results we achieved in 2023. Our expertise will continue to be focused on traffic control services 24 hours a day, 365 days a year.
It's reflected into our prevalent exposure to regulated business today at 96%, with strong protection and high predictability of cash, which will remain firmly anchored to EU regulation. The current negotiations for the next regulatory period are expected to be defined and approved by the end of this year. Once the new performance plan will be approved, a full industrial plan will be released. Air traffic is the driver of our growth apart from the pandemic, whose impact is now over. As air traffic volume is ahead of those recorded in 2019, the world air traffic growth up to 2040 is expected to be at 4% CAGR. We are benefiting from a constant traffic growth and a diversified business mix and customer base. Moreover, the supportive regulatory mechanism provides traffic risk protection, as demonstrated during the COVID pandemic, as well as hedging from inflation.
In the next slide, we have recapped the main elements of the current regulation. I don't want to dwell on the regulatory framework that you know very well, but I guess it's important to underline that we are currently in the third regulatory period, and the fourth will begin in 2025 up to 2029. In this chart, you can see the picture of the key elements of our regulation. All of them offer protection and long-term visibility. As you can see, these elements are pretty stable period after period, and the same stability is expected also for the next one, RP4. The approval process for the RP4 is still ongoing, as you can see in the next slide. The process has started in the first quarter of 2024 with a consultation on 2025-2029 targets.
On the back of the traffic estimates for 2024 traffic published by Eurocontrol, the EU Commission will set the targets for the regulatory period. Performance plans will be prepared and submitted by each provider in September, October, and finally approved by the EU Commission. This is expected to happen by the end of 2024. As you may have seen, the regulated business represents the strength of ENAV's model, but the process is strictly ruled, and this may cap our growth. We do see a strong potential for ENAV to grow in new markets, and some options could represent a significant upside for our shareholders. We have initiated a very collaborative discussion with an external consultant, and this was aimed to analyze markets where we could capture new opportunities, leveraging on our strengths.
In these markets, there is a significant margin of upside for ENAV that we want to extract in order to create value for our shareholders. The growth will be at clear and certain conditions. First of all, it will be done only and if it will create value for our shareholders, with earnings per share accretion being a driver. Then we will leverage on our existing capabilities as we will extract more value from some markets in which we are already present or where ENAV is leader, and here we will progress. For other markets, we have started to look around, supported by our consultant, to understand if and what opportunities we could be able to seed. As you can see in the next slide, we are taking advantage of the experience of the main peers.
ENAV exposure to non-regulated markets is at the bottom of the list of these peers, while the experience of other operators in Europe is very well diversified in the so-called non-regulated markets. As you can see, the new market clusters are pretty in line with our core business, and this is the way we want to follow. The growth opportunities we will base on four main pillars. We will increase the exposure to non-core business in order to enhance the set of service providers, boosting non-regulated revenues. The target markets will be in line with ENAV core business as we are already present in some of them. For other markets, we have started to look around to understand what opportunities we are able to seed because some of these markets have excellent growth prospects and have interesting numbers.
ESG principles will also remain an important driver, and we will focus on fast-growing markets. On the back of these clear criteria, we have selected eight markets as shown in the following slide. These markets we have identified are included into three different baskets. The first area includes the core markets for which we want to achieve the full potential. These are markets in which we are already present, and here we want to extract additional value, strengthening commercial and delivery capacity also through opportunistic M&A operations. In this market, we have identified licenses and software services, the aviation and the technical and engineering services. We have the core markets that we want to optimize and develop, valorizing ENAV's distinctive skills. Here we have identified the air traffic management, training, flight inspection, and meteorology. The last optional market is the airport management.
For this market, we are at an early stage of study. We are analyzing and evaluating the market, leveraging on the consolidated relationship and knowledge of the aviation segment. For each one of these markets, we could offer our capabilities and technological innovation to drive long-term growing commercial success. ENAV could offer a strong knowledge of the customer base as the clients are the same users already known. Technology expertise will remain core, knowing that our future competitiveness is driven by our technology innovation, which in turn is driven by digitalization and cyber. We always have been managing a huge volume of activities. On regulation, we can provide our expertise in dealing with the regulator on the back of what we already manage in core business. In terms of sustainability, as committed before, ESG principles will also remain an important driver.
ENAV will maintain its leading role in sustainable development and ESG performance, aligning its new business ventures with established ESG principles and making sustainability a catalyst for the development of third market initiatives. As recognized by various international organizations such as the CDP and the United Nations Global Compact, ENAV is considered a leading company in the sustainable development for the aviation sector. Our ESG expertise can enable the development of third market services such as Avio consultancies by including ESG elements in project scopes and training by providing courses with part of the content dedicated to sustainability. Moreover, the development of UTM services will allow our group to generate a positive impact also on the emissions from road traffic for the delivery of goods. For example, last-mile delivery using drones can enable significant emission reductions compared to traditional modes of transportation.
In the next slide, I want to provide to all of you the strategic rationale that drove the identification of these new markets to be exploited more in depth. In this market, we will maintain our distinctive positioning as a global leader in ATS software, aiming for an evolution from a software house perspective by expanding our skills on cybersecurity issues. In particular, we want to develop a product portfolio leveraging on IDS capabilities, investing in technology and cybersecurity as these are adjacent businesses to the core business and strongly integrated with it, strengthening our position in cybersecurity, which is crucial in the aviation industries to guarantee the protection of sensitive data and critical infrastructure, the operational continuity, and the reduction of cyberattacks. And we will act on these levers to grow in this market both organically and inorganically.
We will increase the contribution from this market, expanding our footprint in new geographies like North America and the Middle East. We will strengthen our leadership position in the sale of software for Air Navigation Service Provider, offering solutions in line with markets' needs. M&As could be an option to expand our portfolio and complement capabilities at the same condition already discussed in terms of opportunity and value creation. In Avio consultancies, we are already leaders of the sector, leveraging on our strong expertise. But we want to increase our exposure in the sector, offering a wider commercial offering and a higher level of integrated services and oriented towards larger customers, for example, Qatar, that at the moment only a limited number of players can provide.
This market offers high margins as it's based on human resources capital, and it offers farther upside for new categories of customer-like heliports and vertical capability aircraft. In the market of technical and engineering services, we want to accelerate the transformation of Techno Sky from a pure maintenance center to the group's engineering hub as a developer of innovative and integrated hardware and software solutions like the remote tower. We will strengthen the group's engineering hub, and we will consolidate the domestic and the foreign market with the launch of new products and solutions designed to be adapted for our customers, independently from developments for exclusive use by ENAV. As said, we are already acting in this business. As you can see, this new agreement shows how we are farther investing in this market.
A few days ago, ENAV and Leonardo signed a memorandum of understanding to operate jointly in the air traffic management market in Italy and abroad. The industrial collaboration between the two companies will allow the development of further capabilities and skills to provide technologically advanced systems and high-value-added services on national and foreign markets with strong prospects in the short term. ENAV and Leonardo, with the signing of the MOU, have laid the foundations for an industrial and commercial collaboration in order to develop and implement a portfolio of services and technologies in the field of high-value air traffic management, which can include staff training operational, the supply of technologies and systems for air traffic control, and data management up to the definition of flight procedures.
In the unmanned market, we will aim to strengthen our position in this rapidly growing market with the D-Flight supported by investment partially financed by PNRR funds for the development of CISP infrastructure, C ommon Information Service Provider. Here, we could offer innovative services also thanks to selected partnerships and leveraging on our undisputed expertise in ATM. We could develop a new market with significant growth to come. And now let's move more in depth. ENAV is at the forefront of UAS and crewed aerial systems regulation and has launched D-Flight, a company held by ENAV, Leonardo, and Telespazio. The task of D-Flight is to develop for the group the drone market through the implementation of the U-Space platform for uncrewed aerial vehicles traffic management, UTM.
In Italy, ENAC has authorized D-Flight to perform the role of CISP, but D-Flight can also operate as a USSP. Let me briefly explain the role of CISP and USSP. The CISP is the designated operator responsible for disseminating essential common information for seamless operation within the space and provision of aerial services. It's a trusted source of all common information made accessible to all U-Space Service Providers. The USSP is a certified service provider within the U-Space airspaces and during UAS operations missions. The CISP operates in a regulated market while USSP in a non-regulated market. D-Flight is the only CISP designated in Italy by ENAC, leveraging on the rule of a first mover and being one of the first players ready to market. D-Flight could be a very relevant player in the USSP market.
This market is very attractive with tariffs and market fees based on the number of flights and flight time and the present strategic advances in terms of costs, technology platform, brand reputation. Let me now present to all of you a very important commercial agreement with a global player, Amazon. On the back of our strong expertise, we have now a unique opportunity to develop and test the U-Space service offering. A few days ago, Amazon and ENAV have signed a letter of intent expressing their common interest in promoting, developing, and collaborating on a joint project aimed at enabling Amazon's Italian operations as a drone operator to interact with the U-Space infrastructure of the ENAV group to launch a commercial last-mile delivery service in Italy. This is very impressive, witnessing the capability of ENAV to interact as a primary and trusted partner also in this new market.
Also, the training market will leverage on the strong set of competencies that are part of our story. And now we want to continue offering our competencies, exploiting more in depth this market. In this market, we want to strengthen the role of the ENAV Academy as Italian excellence, create strategic partnerships with the top players in the training sector for the development of a digital platform and delivery digital training courses for companies and individuals focused on distinctive skills of the aviation sector. In flight inspections, we want to strengthen planning activities that allow greater efficiency in the management of regulated activities and third markets, saturate and optimize the current fleet operational capacity. We will enhance our experience and our skills on the third market with the possibility of creating partnerships also with other countries in the Mediterranean Sea.
The meteorology market, we will develop software solutions for weather data processing for decision support, also through initiatives to acquire know-how and speed up implementation, build long-term strategic partnerships with important national and international players from the offer of valued weather services, develop artificial intelligence and machine learning tools for advanced solutions that will enhance ENAV's meteorological data assets. The last optional market is the airport management. For this market, we are at an early stage of study. We are analyzing and evaluating the market, leveraging on the consolidated relationship and knowledge of the aviation segment. These markets offer significant growth margin. But I want to stress that we are currently in the phase of study and analysis and that we do not have in mind any asset or any deal in particular at this stage.
Our external consultants have reported a series of airports that present interesting growth prospects. We have moved in this direction only to begin to better understand what it could be about. So any decision hasn't been taken yet. On the back of this deeper analysis, we are conducting on the market, we will evaluate how to progress, if and any, basing our choices on the same rationale we have already shared with you, the value creation for our shareholders. We will keep you updated about it and will share with you our thoughts before moving on. In the next slides, I will show you what we have really, really done till now, studying the airport sector. The airport sector in Italy is very attractive for a series of reasons. First of all, Italy is the third largest aviation market in Europe with 165 million passengers in 2022.
It's the second destination by number of international tourists after Spain. The propensity to fly in the major European aviation market is the highest. After pandemic, the Italian airports showed the faster recovery compared to the European average. Another fundamental element is regulation. We have already our strong capability in dealing with regulators. Pure Dual Till RAB-based models offer high margins and high return with strong protection by the regulation. But it's too early to address additional points as we are, as already said, in a very embryonic stage of analysis. Any decision has not been taken yet as the process of analysis is still ongoing. We will evaluate if moving additional steps basing our choices on the same rationale we have already shared with you, the value creation for our shareholders.
All this story, which I tried to represent to all of you, is backed by a development plan with ambitious goals. We have targeted to increase the non-regulated revenues by 2026 to two times, about two times, from about EUR 40 million in 2023 to about EUR 70 million growing organically, targeting an EBITDA margin of about 35%. On top of this, the growth could also be supported inorganically through M&A, leading to additional revenues in excess of EUR 100 million, depending on the volume of deals. So more in details, this plan is backed by solid organic growth, primarily driven by aviation consulting, technical and engineering services, and software services.
On top of this, we are factoring potential acquisition mainly focused in three areas: software, consolidating our global leadership with a focus on cybersecurity, and technical and engineering services with opportunistic M&A to accelerate new solutions, time to market in our sector.
Airports, as I've already said, here we are in a phase of early stage of analysis of the markets. The value creation for our shareholders will be intrinsic to this plan. The financial structure will continue to be solid as it is now. As I will show you in the next slides, we do expect to invest up to EUR 250 million in new potential initiatives in the non-regulated markets. These initiatives will be financed, raising new debt, only new debt. But let me show you more details about it. I want to be very clear also on the financial profile attached to our strategy. It's a priority for us to maintain a solid financial structure and continue to provide a strong remuneration for our shareholders as we have done this year. This will be done as the financial structure will remain sound.
New opportunities will be financed, raising new debt. Free cash flow generation will continue to be totally devoted to investments of the core business and dividends for our shareholders. Let's see more in depth the financial structure we have in mind. ENAV will maintain a solid and sustainable financial structure with a target leverage below two times. ENAV is expected to invest up to EUR 250 million in new potential initiatives in the non-regulated markets. All the cash out will be financed with new issued financial debt. All operating free cash flow generated from ENAV regulated markets will be devoted to investments in the regulated market as well as dividend distributions to shareholders. Now let's move to dividends.
As you can see in this chart, 2023 dividend that will be paid in May is the highest in our story, representing more than 95% of the free cash flow as per dividend policy. The board of directors has proposed to the AGM EUR 0.23 per share, with a significant increase compared to EUR 0.1967 per share distributed last year. This is an important result for our shareholders, showing 2023 delivery and solid execution. As already discussed, once the new performance plan will be approved approximately by the beginning of next year, we will release a new industrial plan. Then I will propose to the board of directors a new dividend policy based on pure free cash flow generation instead of the actual one based on a proxy of it. Thank you for your attention. This is the last slide of our presentation.
Now I leave the floor to Daniele. Thank you.
Now we are ready to answer your questions during the Q&A session. The first one will be dedicated to financial analysts and investors. The second one will be for the press. The Q&A session will be in Italian. But questions could be posed both in English or Italian as we have provided a translation system through the earphones we have provided. We will receive further questions from investors and financial analysts present here. Then the questions from the broadcasting system. Now let's start with your questions.
Good afternoon. Luigi De Bellis from Equita. I have three questions. Can you help us with the math here? The first concerns the target net debt on EBITDA 2x. Could we possibly assume a growing DPS compared to 2023? Or rather, is dividend for 2023 a floor for the coming years? And can we assume that DPS can actually grow in line with inflation in the coming years? And what can have you derail from this trajectory of DPS growth related to inflation? Second question, can you tell us what the KPIs are for M&As? We understand that you consider EPS accretion. But what multiples would you be prepared to pay for possible M&A deals compared to yours? And also, can you say something on the risk profile of the possible deals?
So what would be your risk appetite based on the target that you intend to look at and possibly buy in particular in the airport industry? And lastly, how will the possible excess capital be used over the two-year target for 2026? Should the deal not be identified, will that capital actually be returned to shareholders?
I think the answer lies in what we did last year. We started off on a journey.
So we are going to pay out the highest dividend in ENAV's history. Our line of reasoning was indeed that following our dividend policy, paying out 95% of what was possible compared to the actual dividend policy. But we looked at 90% over the actual cash generation. So our outlook for the coming year would be that of considering what the company generates in cash terms. We already said it. The time ahead, the coming months, will be months in which we will have to work on defining the new rate, the new charge, because we are about to enter a new regulatory period. We will therefore be managed to get the best possible charge. And then after that, we will look at today's data in the light of what we believe we can do within the framework of our new business plan.
So I hope this to be a floor and that we can increase going forward. Of course, everything we do and with this, I'd like to address your second question. Everything deal we do, we do be highly focused on the risk profile. I already said it. Any transaction we do with borrowed money which does not touch the cash of the company is only done if it creates value for the shareholders. So if it generates cash that can actually offset the cost of debt, leaving some further cash to remunerate our shareholders if possible. So the risk profile, as I said, is closely related to the actual value of the deal, of the transaction.
The risk is very low because in order to create value, you must necessarily be ready to enter into deals that can create value from the very beginning, from the very time when you actually define those transactions. As we said, and with this, I'd like to answer your third question. The first two industries that we focused our attention on were our core business, first of all, because our core business remains unchanged. We also said that we want organic growth on what we already have in our core business, what allowed us to get to only 4% of revenues for the non-regulated market. Perhaps grow our core business globally with a structured commercial approach differently than from the past so that we can grow. Non-organically, this leads as a final consideration to the possibility of M&As.
We haven't really yet looked at individual companies. We're still in a study stage. In order to complete acquisitions that create value, you have to study. You have to act responsibly. You have to be really focused. So organic growth will certainly help us address the markets in a very sound way. And we will certainly become acquainted with new market opportunities. So I cannot say anything about multiples that we are prepared to pay for a transaction. What we want to do is create value. So therefore, we have to assess what will come up and look at it. You referred to airports. Well, let me say right away so as not to have any misunderstandings. We structured our activities in such a way as to make sure that our regulated market remains what we are closely focused on. But this is a capped market.
For the company to grow, it has to look beyond the regulated market, but with clear separation. So we don't want to actually remove the focus on the regulated market. We need to address the non-regulated market in a serious and responsible way. So we started off by saying, what do we have already? How strong are we? What level of product do we already have? Well, we have a good product. Let's improve on it. And let's try and achieve EUR 70 million in 2026. Meanwhile, let's try and understand in that industry as compared to the core business what type of acquisitions could be possible. And then our strategic consultant, whom we chose amongst the best on the market globally, told us, "Well, look, in the aviation industry, you also have airports. And airport management is an industry that you should be looking into."
As you've seen in the two slides, we studied the industry. We tried to understand which assets, not a single asset, because I don't really do transactions based on a single asset. I look at an industry. I study seriously the industry. I try and see whether it can create value on the terms I mentioned before, value for the shareholders. Then it is my duty to study it. But we are at such an early study stage that talking of individual transactions would be really smoking through the eyes of people. It's useless. The fact that there were some news leaked to the press in that direction perhaps leads us to understanding that interest in that industry actually raised the interest of some people. There are several assets also in Italy. We considered some figures.
But we are at such an early stage that it is really premature for us to talk about airport acquisitions. It would be shifting our attention from what we want to do in the short term and what we are already building in the short term. Because let me remind you, growth in the non-regulated market that allowed us to be more confident about the dividend we pay out to our shareholders took place with a serious commitment in the last part of 2023. And those EUR 43 million, the 7.9% increase that may be little to some of you, well, that is the launch of an initiative that lowers the risk and brings a lot of value because the margins of what we are building there is extremely interesting. We are talking of about 35% as compared to the 30% which is given by the regulated market.
So we really look at the regulated market as our core business, our engine, and the very nature of our company. And then on top of that, we look at how to grow in our company. And in order to do so, our full potential coming from our core business, the fact that we are the most important service provider in Europe, we will use that in the market to try and grow on those markets from a commercial point of view.
Thank you for this. A couple of quick questions. Number one, this organic growth and these new strategic pillars, well, do you think that they could boost the dividend policy going ahead? So do you think that that's a positive message looking at the industrial vision? And second question about the growth, thinking of Kuala Lumpur and the pillars of your expertise. You referred to Qatar. Are there any specific geographies that are most attractive to you in terms of expanding your know-how and expertise as you've been doing over the past few years?
I'll start from the second question. I said it already. We have worked a lot in some geographies of the world. We did so in the United Arab Emirates because there was a positive factor. Doors were opened, if you will, to Italy. And so we made the most of that. We did that in Malaysia, in Kosovo, and in Europe. We've entered new markets that were unprecedented for us. But we're also very interested in North America for some activities that I won't list just yet. I am very interested as well as regards what is going on in Africa. Africa is an interesting market. We'd like to transfer there our know-how.
We'd like to export our technology. We want to do that as part of a plan that involves many different Italian companies or many local companies that can avail themselves of our expertise. So that is what we are considering furthering on the unregulated markets. The first question now. Let's clear the air. It is important to be honest about what we're doing and not what is just being printed in the press. This is an industry that is heavily regulated, just like maritime transport. Rumors are reported in the press without getting proper answers. We really wanted to wait for today's event to provide you with exact answers and numbers. The numbers have been put together by a dedicated team. It's been a longstanding work. We've put together a team that has worked very hard over the past few months.
Therefore, our team tends to think a bit out of the box. This company really needs to focus on our core business, for starters. We need to field all of the mechanisms necessary to boost the efficiency of our core. But we also need to make sure we grow the remuneration for our shareholders. So we need really to look a bit outside. What does that mean? Well, it means staying focused on our core business but also put together an organization that sales-wise makes us strong and means that we can make the most of the strengths the company has in our core business. So I am confident. It's a message of confidence I want to pass on to our shareholders. Our unregulated activities create value. That generates cash. That offsets the cost of debt.
So if the IRR is important, is sizable, this means you are creating added value in terms of dividends paid out. That's why the EUR 43 million we put on the plate are important because that means we can pay out a dividend of EUR 0.23 per share.
Good afternoon. Several questions. I'd like to go back to the guidance for 2024, looking at your indications. There seems to be no operating leverage. OpEx are growing as much as revenues, more or less. Is there some impact from inflation and costs driving this? And then your target for EUR 70 million of sales for 2026. I'd like to know how much of that well, actually, what is your level of visibility? And secondly, referring to this again, how much of these EUR 70 million refer to regular revenues?
How much is due to contracts that perhaps might have one or two or three years in duration? Then M&A, you referred to that you have EUR 250 million available for external growth. Perhaps it's too early to ask. But perhaps you can give us some more color. Do you have already an idea of how to break down these funds in the three different areas? That is to say, airports, possible software acquisitions, as well as engineering services. I'd like to go back to the issue of value creation, which was heavily stressed in your presentation. EPS accretion is one of the parameters on multiples. It is difficult to provide guidance. But perhaps IRRs or payback periods, that it's a little bit easier for you to give us some general indications that can help us understand where you think you can be heading to. Thank you.
Well, let me start from the end. After a full day, it is difficult for me to remember everything. So I'll start from the end, from the EUR 250 million. We have one point something in terms of leverage. So we can do something very good here. We do not say how much we are going to devote to which deals. First of all, because the first signal we sent is we want to go from EUR 43 million to EUR 70 million organically. And as we grow and we try and put together a product that remains valid over time because, as you rightly said, it is important to consider not only provision of services but also maintenance, for example. And in order to do so, we need to structure a product that needs to be better than what we did in the past in a fragmented way.
But the EUR 250 million today only represent a potential that the company has. The message is that we are not going to actually enter into debt for EUR 250 million tomorrow. We grow organically. We reorganize our company with clear separation between the regulated market, where we need to be really highly focused on also for the definition of our charge and because of the fact that it is the core business of our company. And then we must look carefully at what a core business in the regulated market can bring as a contribution to the non-regulated market. And during this journey, we are certainly going to encounter and assess opportunities to acquire perhaps software companies or companies having a client portfolio allowing us to enter markets we are not yet present in or that can complement or may complement our offering. We presented seven business lines.
The eighth one is optional. We presented it as optional. So we didn't say we will put EUR 70 million in the first business line and EUR 100 million for the second and another one. And the third one may have EUR 80 million just so that we can get to EUR 250 million. We will assess the situation on a step-by-step basis, knowing that good debt means creating value for our shareholders. Therefore, it is our responsibility when working on our core business is of working seriously on core business.
And that must be the very same line that we also follow when we address the non-regulated market. So any transactions that we complete will be aimed at creating value. And in order to create value, you need to carry out a very in-depth assessment of the situation. But in the industry, specifically for our core business, we have several opportunities.
There are several very interesting situations. We have to study them. We have to do the math. And then if we were to acquire any of them, the result will need to be value creation. As for airports, there is nothing of what I've just said. For airports, we only assessed the situation of an industry because the strategic consultant who described our catchment area outside the regulated market also told us that the aviation industry also includes the airport management sector with incredible figures. They have assets where no bids were made despite the fact that they've been on the market for a long time. So let's, I mean, go and study them because they have interesting numbers. So we are at a very early stage of studying the industry.
We considered the figures concerning several assets, not just one because we are now studying the industry and not individual transactions. And then if your question is, have you ever made a bid? Have you carried out a due diligence exercise? Can you calculate value? Well, my answer would be no. Far from it. We are still very highly focused on the core part of the third market. And then, of course, if there is something that can give value to our shareholders going forward, then it is our duty to actually study the possibility and then tell our shareholders to see whether what we're doing is right or perhaps whether some of them are not pleased with what we're doing. But our sense of responsibility tells us that we need to look at the market.
Otherwise, that would mean shutting the door in the face of a business that can actually increase value for shareholders and greatly so. But looking at an industry does not mean that we already are considering deals and that we have already set aside specific amounts of money to close a deal. And that was the third question. Coming to the second one, bear with me. The first one will be addressed by the CFO. But can you repeat the second question in the microphone for translation? Now, we are focused on contracts right now to a great extent because we need to grow a reputation in some markets. In some other markets, we are well known. And then, of course, you tend to be called back again. There are following stages.
And then you manage to remain related to the service provider into the country where you provide your service today. For aviation consultancies in Italy, we closed an important agreement. And then with Leonardo, actually expanded on that. We went to Italy for an important contract. And then we will do that again for Ukraerorukh, which is indeed worth a lot of millions. And we will continue along these lines because we are convinced that in Italy, all too often, we lower our barriers so that others can enter the market, whereas it is difficult for us to go, I mean, approach. But in Italy, there is a service provider that has a captive market. And this is very important. And this provides considerable added value because where the Italian Air Force needs a specific service, the only possible provider would be ENAV.
As was the case in the past, we go to lengths to do something. We take three years to conclude an agreement. Then, of course, this will not be effective. We concluded an MOU. We presented it to you. We said that we already presented an offer. We will soon make another very important bid for an eight-year period, not just a single year but eight years. We do that with a leading domestic player, one of the most important players, not only domestically but globally. Then, of course, we also concluded an MOU with Amazon. Some considered this as very far in the future. But I see that as being very close because in America, drones are already used to deliver parcels. Technology is already there. So the vice president came to visit us. I'm referring to the vice president of Amazon Air.
We were very pleased by that. An agreement was signed. We are a service provider which should not only give amateurs the possibility of flying drones to 250 meters of altitude because this is something we already did in the past. It is our duty to industrialize the technology and processes that we already have. We have to consider the matter industrial, not only in service terms. When you're addressed by a major player, you are a major service provider which looks at the other player eye to eye and says, "Look, I'm in the market in Italy. And the level of efficiency I can guarantee is unparalleled." When you demonstrate to them based on your software that you are able to do what you promise, then, of course, Amazon is convinced and signs the agreement. This is not something for the coming two years.
We have to have a longer-term approach. Going forward, this is indeed significant in terms of growth and in terms of business. Again, this is based on the fact that, importantly, we need to have a vision. We need to have a team to implement that vision. We have to act responsibly. But our North Star should be that of telling our shareholders, "Look, we only work to create value and to raise the bar vis-à-vis the dividends that you have paid in previous years." We and I, in particular, will only be satisfied when our investors are satisfied. We can say that today. If you're getting a piece of news in a blackout period, it's a little bit more difficult. Let's consolidate our figures.
Let's try and explain to the market and to those who, unfortunately, did not have an opportunity to talk to us who we are, what we've been doing, and where we want to go. So we want to reassure you vis-à-vis what was read in the press and which might have led people thinking that we want to buy things here and there in a reckless way. Well, I'm not a reckless person. I've always based, whatever I did, on math.
The first question was about the outlook. As you can see, we've had revenues with a single-digit growth. And that is based or strictly related with the EBITDA. So we've already started some activities to control our costs. And this is something that will be continued next year. And, of course, we have negotiation mechanisms as per the new regulations to close the regulation by year-end, as Pasqualino said.
To give you a general overview, in 2024, we expect these improvements that we've shared with a cash flow and results that is very close to the one we've just shared. Because of regulatory mechanisms in 2024, we will review all of our figures. The value, we will negotiate. So perhaps we will rectify the balances for the future. Let's expect a better 2024. We've given you some guidance. It's structured roughly as in 2023. Also via the broadcasting systems. Thank you.
Good afternoon. Luca Bacoccoli, Intesa Sanpaolo. The activity in non-regulated markets, some opportunities have already been formalized. Some other will be shortly. Can we have some more information on that, please?
Sure. The seven business lines have already been shared with you. The MOU signed with Leonardo and Amazon are two of the major three baskets we've mentioned. Clearly, that volumes and margins are well known. When we talk about training and education, I'd like to give you an example. Fortunately, our air controllers are trained in our academy in Forlì. This academy of ours is a top-notch center that trains our air controllers. And then they grow professionally in our company. And then they get to our ACCs. On that, we perhaps have a need to industrialize this process because it is true we are good at training our air controllers. But it is equally true that the remuneration of these professionals is somehow privileged information. It's not something that everyone knows.
Extending our targets, sharing a bit what it takes to become an air controller, sharing the career path, and industrialize the education and training process, say, through a digital platform, means doing what other companies did in Italy, for instance, e-learning universities. That can't be done if we extend that to small portions of the aviation industry. Then that's our core business, what we do out there. Mind you, the potential market is EUR 40 billion. EUR 20 billion. We do like EUR 40 million. But if we organize ourselves sales-wise, we can become ever more present on the market. And we will get there because the efficiency rate and the technology level, with the adjustments that need to be implemented, well, I think that we will be in a position to do well across many different areas on the non-regulated market.
Thanks, John Campbell here with Bank of America. I had three questions if I could. Thanks for the presentation. So I was wondering about your decision to sort of announce a new dividend policy once you've got clarity on the regulation. And you're talking about a pure free cash flow approach. Basically, we should look at your company's sort of definition of free cash flow to come up with that. And I'm thinking about why you chose to use free cash flow because sometimes that can be more volatile given the movements of the balance or potential downturns in traffic, God forbid, compared to P&L, net income, earnings. Why did you choose to have a 2x leverage target? Sort of what was the reason behind that? That's the second question.
I missed your answer in relation to if you can't basically, shall we say, spend the EUR 250 million, you can't find any opportunities, would you consider distributing basically the money that you didn't spend? And then the last question I had related to progress on the consolidation of the two area control centers, I believe it's Brindisi and Padua. I'm interested if you could quantify any of the expected OpEx savings from that move whenever it's done by 2027 or whatever the case might be. Thanks very much.
Very well. Let me give you an answer on the first part. And the first, second, and third are somehow related because we're always talking about free cash flow and dividend. I see you nodding. Okay.
So what the CEO was saying before, he was saying that the intention is that of basing ourselves on free cash flow because we saw that the current dividend policy, which is based on a proxy of the free cash flow, which was indeed quite useful at the time of listing when ENAV was not well known, we had a very complex regulatory system. So it was a simplification together with the banks that accompanied us in the listing process. So that has become obsolete. And why? It is outdated because we do realize that, if I may be allowed the expression, the free cash flow and I'd like to tell you that the dividend policy was at least 80% of cash flow generated as proxy of net profit plus M&A minus CAPEX and gross of fees or before fees.
Well, so this sort of economic free cash flow, if I may call it like this, was becoming very different because of balancing issues, was becoming different from the actual cash flow created by the company. So what was being emphasized by the CEO and what we confirm is that we have the intention of bringing forward a proposal for a new dividend policy to be discussed in the next few months in our company in order to try and have these two elements coincide. The company generates a free cash flow on its operating part. It was clearly indicated that this free cash flow will be used for our core business, for growing in our core business, and to feed our core business as well as for our shareholders. So that is going to be its only use. So the dividend policy will follow this rationale.
Then you said why two times for the actual leverage? So net debt on EBITDA. Well, again, going back to what was being said before and to what I was saying to Luca Bacoccoli, you imagine that for 2024, cash flow could be very close to 2023. So figures are quite similar towards the end of the RP3. So cash flows can be imagined. But, of course, so the full balance of traffic for 2020, 2021, when we will get it? Well, we will get it in full when we reset the figures in 2025. So with this dividend policy, this is what will happen. Since all M&A activities will be based on debt, of course, that will affect the leverage. But that will not affect cash generation and usage. And I hope I have addressed your questions. Very well. And I'll now hand over to the CEO.
Well, we have technology which allows us to turn the two ACCs that we currently have into digital control centers of 26 airports, 13 directly from Padua and another 13 directly from Brindisi, which going forward leads to major savings in terms of personnel costs, of course, and also allows us to develop and test a technology which is currently very interested in third markets or in the non-regulated markets. Many tenders which are approaching globally are headed in this direction. They ask service providers to be experienced in building and managing digital towers. So perhaps we are the very first in Europe with the construction of two digital centers which should work at capacity by 2028 to manage 26 airports in Italy, which also brings another advantage. That is that small airports today are in cost recovery on a cost recovery basis.
In the future, they could be performing. So after the regulatory period, you might have a further advantage on this score too.
Good afternoon, everyone. Nicolò Pessina, Mediobanca. As regards potential acquisitions in the airports, I read the press release this morning. And it talked about strategic partnerships with industry players. Does that mean that ENAV would be happy to have minority holdings and so act as an investor rather than being an industrial operator or player? Second question. Are you considering M&As abroad? And point of clarification, you talked about CAPEX of EUR 1.2 billion 2024-2031. Is that right? Did I get you correctly? Yeah. Thank you.
Yes. Thank you for your question because I think you touched upon something that is very important. And we didn't cover it. When we well, mind you, on a preliminary basis, we looked around in the industry.
We noted what is playing for everyone to see. Number one, let's have a look, we thought, of airports in Italy, how they are managed, and what are their margins, and what are the best potential strategic partners to do that. Second, we thought, well, we need to consolidate. And therefore, we can't be a minority player. So this is a sine qua non requirement. And it is something we will put forward in case an opportunity were to come up in the future. So no minority stakes. And on top of that, we will go for a strategic partner. That's for sure.
Aleksandra Arsova, Equita. I have three follow-up questions. First of all, some time ago, if I'm not mistaken, within the framework of unregulated M&As, mention was made of airspace for other adjoining countries or neighboring countries. This was not mentioned today. It's completely off now.
And then second question, could you clarify a little bit on the potential M&As? You repeatedly stated that you have nothing specific in mind. But then, on the other hand, you mentioned at least EUR 100 million of potential revenues related to the possible EUR 250 million that you're expecting to spend. So where does that figure come from? And can that be also complemented by EBITDA, free cash flow, and other KPIs? And then one last question on something I read in the press release on your results on the regulated part where you say that the EU targets for RP4 will be published in June instead of March, April, which is what I seem to remember. So this possible delay, what does it mean? And how are discussions proceeding?
For the last question, the CFO will give you an answer.
Well, in point of fact, they will be approved in June. But the range is expected in the coming weeks or days even. Then, of course, there will be negotiations. We will narrow down on the value. And that will be approved in June.
Well, we haven't relinquished the idea of taking part in beauty contests or tenders for new airspaces. They're not there. That is the problem. And in fact, I should say that that is one of our priorities still. Where anything come up globally in terms of a tender on the management of towers or in the management of airspace, we will certainly make our bid because that is our primary business. On revenues, we do believe that the core business part, which is the part that we are interested in. We want to shift the core business part, take it to the non-regulated market, net of all the other things which are still in the distant future.
For the core business part, we are doing a lot. We saw that a very large attackable market and that there are entities that are active on a global level and which appear to be very interesting in terms of margins and results. Identifying partnerships or building M&A transactions involving some of these entities would allow us to open up new markets in what we are very good at doing. We need no one to teach us. Thus, certainly providing and creating more value for our shareholders. Again, we are considering the matter. We are assessing a series of opportunities. This is why we felt it was only right for us to also mention the opportunities existing in terms of investing these EUR 250 million or part of them.
Unless there are further questions from the room here, we have three questions from the web. Question number one: Do you expect changes versus the regulatory framework of RP3 as regards the one currently being approved?
Let me answer right away: no. Because if you consider the time frame, we are already lagging behind to close everything by year-end. We need to have the charges ready. The commission is basically confirming the regulatory framework as it is being produced. Soon enough, the targets will be released. That means that the framework will be pretty much unchanged in RP4 versus RP3.
Other questions, Marco Limite, Barclays, you basically put on the plate EUR 250 million for potential M&A. That is in line with your leverage target. Can you clarify a little bit how you're planning to use the extra cash for the recovery money you got during COVID? Will that be part of the free cash flow? And so will that be the base for the dividend payout?
Well, let's build the charter of the tariff first. Let's start off with RP4. And then in 2025, we will see what fruits we will reap and how things will pan out.
Last question. In the past, you mentioned regulated M&A or asset-light M&A in ATC. Are these options to be rolled out? Or they're just postponed when there is more clarity on RP4?
Well, certainly, that will be, if you will, a consequence of the tariff we will negotiate.
I don't think there are any further questions from the room. Actually, one from down there. Of course, the ENAV team will be available for further follow-ups. We are pleased to offer you an aperitivo. And now we begin the Q&A session for the journalists. Thank you very much for being with us.