GAVIO GROUP
AUTOSTRADA TORINO – MILANO GROUP
SOCIETA’ INIZIATIVE AUTOSTRADALI E SERVIZI GROUP
June 2006
AGENDA
GROUP STRUCTURE
FINANCIAL RESULTS
REGULATION
GROWTH STRATEGY & VALUE DRIVERS
CONCLUSION
2
GROUP STRUCTURE
FINANCIAL RESULTS
REGULATION
GROWTH STRATEGY & VALUE DRIVERS
CONCLUSION
3
GROUP STRUCTURE
34,59%
100%
56%
87,39%
96,17%
60,77%
85,92%
ABC Costruzioni
5,56%
65%
12,59%
36,98%
99,87%
67,63%
95%
36,5%
41,17%
Società Autostrada
Asti-Cuneo S.p.A.
84,36%
20,0%
70%
AUTOCISA
45% (*)
(*) Through ASA
4
OWNERSHIP STRUCTURE
Holding companies
0,11% TREASURY STOCKS
2,13% ADELPHI CAPITAL LLP
2,01% LAZARD ASSET MANAGEMENT LLC.
3,17% JP MORGAN CHASE & CO.
4,00% FONDAZIONE CR-TO
4,95% ASSICURAZIONI
GENERALI GROUP
CORPORATION
5,53% ASSICURAZIONI GENERALI
GROUP
38,08% FREE FLOAT
36,13% FREE FLOAT
50,85% GAVIO GROUP
53,04% GAVIO GROUP
5
OWNERSHIP STRUCTURE
Main motorway companies
PUBLIC AUTHORITIES
%
SUBSIDIARIES
AUTOCISA
Società Autostrada
Asti-Cuneo S.p.A.
99,87
0,13
-
-
-
-
-
100
68
4
-
-
28
-
-
100
41
41
-
18
-
-
-
100
37
11
11
9
-
32
-
100
36
-
-
-
64
-
-
100
87
6
2
4
-
-
1
100
61
22
5
6
-
-
6
100
84
5
2
9
-
-
-
100
65
-
-
-
-
35
-
100
6
NETWORK MANAGED
Km.
S. BERNARDO
AOSTA
M. BIANCO
IVREA
MILANO
FREJUS
PIACENZA
SALT
ADF
CISA
ASTI-CUNEO
154,9
113,2
182,0 (1)
90,0 (2)
TOTAL
540,1
TORINO
PARMA
ASTI
ALESSANDRIA
VOLTRI
SESTRI L.
CUNEO
VENTIMIGLIA
SAVONA
LA SPEZIA
VIAREGGIO
PISA
LUCCA
LIVORNO
ROSIGNANO M.
(1
)
SUBSIDIARIES
EQUITY INVESTMENTS
Autostrada dei Fiori S.p.A.
Autostrada Ligure Toscana S.p.A.
Autocamionale della Cisa S.p.A.
Autostrada Asti-Cuneo S.p.A.
Costanera Norte S.A. (through ASA) - Chile
SIGNIFICANT INVESTMENTS
Milano Serravalle – Milano Tangenziali S.p.A.
Società Autostrada Tirrenica S.p.A.
Inclusive of 81 km stretch linking Parma to the Autostrada del Brennero (under construction)
Under construction
7
NETWORK MANAGED
S. BERNARDO
AOSTA
M. BIANCO
IVREA
MILANO
FREJUS
PIACENZA
TORINO
PARMA
ASTI
ALESSANDRIA
VOLTRI
SESTRI L.
CUNEO
VENTIMIGLIA
SAVONA
LA SPEZIA
VIAREGGIO
PISA
Km.
SATAP
- Torino-Milano stretch
- Torino-Piacenza stretch
ATIVA
SAV
SITAF
127,0
167,7
163,7
59,5
94,0
TOTAL
611,9
LUCCA
LIVORNO
ROSIGNANO M.
SUBSIDIARIES
EQUITY INVESTMENTS
Autostrada Torino-Alessandria-Piacenza S.p.A
Autostrade Valdostane S.p.A.
Autostrada Torino-Ivrea-Valle d’Aosta S.p.A.
Società Italiana Traforo Autostradale del Frejus p. A.
Società Italiana Traforo del Gr.S.Bernardo S.p.A.
Road Link (A69) Holding Ltd (UK)
SIGNIFICANT INVESTMENTS
Milano Serravalle – Milano Tangenziali S.p.A.
8
NETWORK MANAGED
S. BERNARDO
AOSTA
M. BIANCO
IVREA
MILANO
FREJUS
PIACENZA
TORINO
PARMA
ASTI
ALESSANDRIA
VOLTRI
SESTRI L.
CUNEO
VENTIMIGLIA
SAVONA
LA SPEZIA
VIAREGGIO
PISA
LUCCA
LIVORNO
SALT
ADF
CISA
ASTI-CUNEO
TOTAL (a)
154,9
113,2
(1)
182,0
(2)
90,0
540,1
Km.
SATAP
- Torino-Milano stretch
- Torino-Piacenza stretch
ATIVA
SAV
SITAF
127,0
167,7
163,7
59,5
94,0
TOTAL (b)
611,9
ROSIGNANO M.
TOTAL (a) + (b)
1.152
SUBSIDIARIES
EQUITY INVESTMENTS
Autostrada Torino-Alessandria-Piacenza S.p.A
Autostrade Valdostane S.p.A.
Autostrada Torino-Ivrea-Valle d’Aosta S.p.A.
Autostrada dei Fiori S.p.A.
Autostrada Ligure Toscana S.p.A.
Autocamionale della Cisa S.p.A.
Società Italiana Traforo Autostradale del Frejus p. A.
Società Italiana Traforo del Gr.S.Bernardo S.p.A.
Road Link (A69) Holding Ltd (UK)
Costanera Norte S.A. (through ASA) - Chile
SIGNIFICANT INVESTMENTS
Milano Serravalle – Milano Tangenziali S.p.A.
Società Autostrada Tirrenica S.p.A.
(1) Inclusive of 81 km stretch linking Parma to the Autostrada del Brennero (under construction)
(2) Under construction
9
GROUP MOTORWAY CONCESSIONS
ASTM Group Subsidiaries
Concession expiry
SATAP (A 4 stretch)
2026
SATAP (A 21 stretch)
2017
ATIVA
2016
SAV
2032
SITAF
2050
SITRASB
2034
ROAD LINK HOLDING Ltd. (UK)
2026
10
GROUP MOTORWAY CONCESSIONS
SIAS Group Subsidiaries
Concession expiry
SALT
2019
ADF
2021
CISA
2010 (1)
ASTI CUNEO
2033
COSTANERA NORTE (Chile)
2033
(1)The BoD of ANAS, on 20 February 2006, approved an extension to 2044
11
GROUP STRUCTURE
FINANCIAL RESULTS
REGULATION
GROWTH STRATEGY & VALUE DRIVERS
CONCLUSION
12
ASTM 2006 & 2005 - Q1 RESULTS - (IAS/IFRS)
(Eu mn)
Q1 2006
Q1 2005
REVENUES:
- TOLL REVENUES
73
67
- REVENUES FROM CONSTRUCTION SECTOR
18
23
- REVENUES FROM ENGINEERING SECTOR
5
7
- OTHER REVENUES
6
6
TOTAL REVENUES
102
103
OPERATING COSTS
(83)
(77)
29
23
48
49
CAPITALIZATION OF INTERNAL CONSTRUCTION COSTS
EBITDA
NET FINANCIAL INDEBTEDNESS
504
(1)
NET FINANCIAL INDEBTEDNESS
632
(1)
489
(2)
615 (2)
(Including the NPV of the “Central Guarantee Fund” debt)
(1) Loans guaranteed by the Government: 31 Eu mn
(2) As at 31/12/2005
13
ASTM – Q1 2006 EBITDA BY SECTOR
MOTORWAY SECTOR
89%
28%
A21 STRETCH
14%
11%
36%
(1)
A4 STRETCH
5%
ENGINEERING & PLANNING
SECTOR
(1) ATIVA is consolidated on a “proportionate basis” (41%)
6%
MAINTENANCE & CONSTRUCTION
SECTOR
14
ASTM - NET FINANCIAL INDEBTEDNESS
& LEVERAGE
450
410
400
350
3
372
2,5
321
300
250
489 (1)
2,41
2,36
2,34
1,2
2,15
200
0,8
150
100
0,63
0,68
0,68
0,57
0,4
50
0
0
31/12/2002
Pro forma
31/12/2003
NET FINANCIAL INDEBTEDNESS (Eu mn)
(1) Loans guaranteed by the Government: 58 Eu mn
31/12/2004
31/12/2005
DEBT / EQUITY (x)
DEBT / EBITDA (x)
15
ASTM - FINANCIAL RESULTS
(3 YEARS PERIOD)
(Eu mn)
CAGR
+ 4,3%
Toll
Revenues
251
2003
267
2004
273
2005
CAGR
+ 13%
E.B.I.T.D.A
159
2003
191
2004
203
2005
CAGR
+ 67,3%
Operating
Cash - Flow
104
111
2003
2004
291
2005
16
ASTM GROUP RESULTS (CONT’D)
(Eu mn)
CAGR
+ 60%
Net Profit
Group
254
99
2003
100
2004
2005
CAGR
+ 30,8%
Dividends
Paid
53
31
2003
35
2004
2005
17
SIAS 2006 & 2005 - Q1 RESULTS - (IAS/IFRS)
(Eu mn)
Q1 2006
Q1 2005
REVENUES:
- TOLL REVENUES
77
75
- REVENUES FROM TECHNICAL SECTOR
6
6
- REVENUES FROM CONSTRUCTION SECTOR
1
2
- OTHER REVENUES
7
6
TOTAL REVENUES
92
89
OPERATING COSTS
(61)
(56)
19
14
50
47
CAPITALIZATION OF INTERNAL CONSTRUCTION COSTS
EBITDA
NET FINANCIAL INDEBTEDNESS
287 (1)
337 (2)
NET FINANCIAL INDEBTEDNESS
600 (1)
646 (2)
(Including the NPV of the “Central Guarantee Fund” debt)
(1) Loans guaranteed by the Government: 43 Eu mn
(2) As at 31/12/2005
18
SIAS – Q1 2005 EBITDA BY SECTOR
MOTORWAY SECTOR
92%
32%
42%
18%
AUTOCISA
MAINTENANCE &
CONSTRUCTION SECTOR
3%
TECHNOLOGICAL SECTOR
5%
19
SIAS - NET FINANCIAL INDEBTEDNESS
& LEVERAGE
400
337
(1)
2
1,6
300
287
1,21
230
1,2
1,16
1,14
200
0,8
129
100
0,75
0,37
0,66
0,20
0,4
0,37
0
0
31/12/2002
31/12/2003
NET FINANCIAL INDEBTEDNESS (Eu mn)
(1) Loans guaranteed by the Government 56 Eu mn
31/12/2004
31/12/2005
DEBT / EQUITY (x)
DEBT / EBITDA (x)
20
SIAS - BOND
ISSUE SIZE: 335 Eu millions (N° 31,9 millions bonds)
BONDS HELD BY THE GAVIO GROUP: N° 20,3 millions (64%)
PAR VALUE: 10,50 Eu
DURATION: 12 yrs (2005 – 2017)
INTEREST: 2,625%
CONVERSION RIGHT: • FROM THE END OF THE 5TH YEAR
• 1:1 AT PAR
21
SIAS - FINANCIAL RESULTS
(3 YEARS PERIOD)
(Eu mn)
CAGR
+ 3,7%
Toll
Revenues
321
2003
338
2004
345
2005
CAGR
+ 16,9%
E.B.I.T.D.A
204
2003
247
2004
279
2005
CAGR
+ 21,9%
Operating
Cash - Flow
229
154
149
2003
2004
2005
22
SIAS - GROUP RESULTS (CONT’D)
(Eu mn)
CAGR
+ 51,4%
133
Net Profit
Group
58
2003
69
2004
2005
CAGR
+ 73,2%
51
Dividends
Paid
33
17
2003
2004
2005
23
GROUP STRUCTURE
FINANCIAL RESULTS
REGULATION
GROWTH STRATEGY & VALUE DRIVERS
CONCLUSION
24
ASTM GROUP - ANNUAL TARIFF CHANGE
(%)
2005
2006
FORECASTED
INFLATION RATE
1,60
1,70
SAV INVESTMENTS(2)
1,43
1,43
NEW INVESTMENTS
-
- (3)
PRODUCTIVITY
-0,89
-0,90
QUALITY FACTOR
0,30
0,33
ANNUAL TARIFF
CHANGE
2,44
2,56
(1)
(1) Calculated as a weighted average on 2005 “toll revenues”
(2) X factor was granted to SAV to cover both the previous and new investiments
(3) X factor related to the “new investments” would apply from January 1, 2007
25
SIAS GROUP - ANNUAL TARIFF CHANGE
(1)
(%)
2005
2006
FORECASTED
INFLATION RATE
1,60
1,70
NEW INVESTMENTS
-
- (2)
PRODUCTIVITY
-0,89
-0,90
QUALITY FACTOR
0,65
0,78
ANNUAL TARIFF
CHANGE
1,36
1,58
(1) Calculated as a weighted average on 2005 “toll revenues”
(2) X factor related to the “new investments” would apply from January 1,2007
26
ASTM GROUP - INVESTMENT PLAN
Status of the Plan
(Eu mn)
SATAP: A4 Stretch
A21 Stretch
ATIVA
SAV
Investments
Plan (1)
Terminal
value (2)
Approved
by
ANAS
To be
approved
by ANAS
635
259
894
350
194
218
a
50
-
a
a
(1) Expected amount from 2006 until the end of the concession agreements
(2) Terminal value on investments garanted - by the incoming concessionaire - upon expiry of the concession
agreement
27
SIAS GROUP - INVESTMENT PLAN
(Eu mn)
Investments
Plan (1)
Terminal
value (2)
Status of the Plan
Approved by
ANAS
SALT
510
290
a
ADF
190
-
a
CISA
2.000
800
a
800
-
a
ASTI-CUNEO
(1) Expected amount from 2006 until the end of the concession agreements
(2) Terminal value on investments garanted - by the incoming concessionaire - upon expiry of the concession
agreement
28
GROUP STRUCTURE
FINANCIAL RESULTS
REGULATION
GROWTH STRATEGY & VALUE DRIVERS
CONCLUSION
29
STRATEGY: WHAT WE HAVE DONE
POSITIVE TRACK RECORD OF MANAGEMENT IN
IMPLEMENTING ITS STRATEGY
OVER THE PAST SEVEN YEARS, THE GROUP:
became the second biggest motorway player in Italy
expanded the network from 127 km to 1.152 km
strengthened the Group network in the highly
industrialised north of Italy
bidden - successfully - for new concessions abroad
(i.e. Costanera-Chile)
30
STRATEGY: WHAT WE FORESEE
MOTORWAY SECTOR
CONCLUDE THE RENEGOTIATION OF THE “NEW”
FINANCIAL PLANS
BID FOR THE “BRONI-PAVIA-MORTARA” STRETCH
CARRY OUT THE “PARMA – BRENNERO MOTORWAY”
PROJECT & “ASTI-CUNEO”
REDUCE MINORITIES THROUGH ACQUISITIONS
(MAINLY FROM LOCAL PUBLIC AUTHORITIES)
31
STRATEGY: WHAT WE FORESEE
OTHER SECTORS
DEVELOP ENGINEERING & PLANNING ACTIVITIES
(i.e. "HIGH SPEED TRAIN" PROJECT)
WIDEN TELECOM SERVICES (BY USING THE approx. 1000
KM FIBRE-OPTIC MODERN BACKBONE AND
TRANSMITTERS FOR MOBILE TELEPHONE OPERATORS)
...WITHOUT FORGETTING POTENTIAL FROM
DIVERSIFICATION IN OTHER "SIDE" BUSINESS AREAS
(i.e. LOGISTICS, HARBOURS)
32
VALUE DRIVERS: TRAFFIC GROWTH
TRAFFIC TREND HISTORICALLY OUTPERFORMED GDP GROWTH EVEN IN RECESSION YEARS
4.5%
3.5%
2.5%
1.5%
0.5%
-0.5%
-1.5%
1995
1996
1997
1998
1999
GDP
2000
2001
2002
2003
2004
2005 2006
TOTAL TRAFFIC ON MOTORWAYS
33
VALUE DRIVERS: AUTOMATED TOLL
PAYMENT SYSTEMS
ENVISAGED SITUATION
( within 4 yrs )
CURRENT SITUATION
VIACARDS & TELEPASS
60%
CASH
CASH
15-20%
30%
8%
CREDIT CARDS
2%
FAST PAY
AUTOMATED TOLL PAYMENTS 70%
80-85%
AUTOMATED TOLL
PAYMENTS
34
VALUE DRIVERS: SUB - CONCESSION
AGREEMENTS (Eu mn)
7,0
33,0
6,0
29,0
19,5
2006
(forecast)
4,0
2005
2004
ROYALTIES FROM PETROL STATIONS & RESTAURANTS
OTHER ROYALTIES (TELECOMS, ADVERTISING, … )
35
GROUP STRUCTURE
FINANCIAL RESULTS
REGULATION
GROWTH STRATEGY & VALUE DRIVERS
CONCLUSION
36
CONCLUSION
Long term view
of the business,
dedicated
management
Conservative financial
profile and balanced
growth strategy
(also abroad)
Value creation
through lasting,
experienced
motorway know-how
and operating
efficiency
No competition from
other transportation
systems
Growing opportunities
arising from the
“new” stretches
Substainable
profitability
growth rates
37
www.autostradatomi.it
www.grupposias.it
38