GAVIO GROUP
AUTOSTRADA TORINO – MILANO
SOCIETA’ INIZIATIVE AUTOSTRADALI E SERVIZI
October 2008
AGENDA
GROUP STRUCTURE
FINANCIAL RESULTS
REGULATION
CONCLUSION
2
GROUP STRUCTURE
FINANCIAL RESULTS
REGULATION
CONCLUSION
3
Current Group Structure
Aurelia S.p.A. /
Argo Finanziaria S.p.A.
10,11%
53,14%
Market
Market
ASTM S.p.A.
63,42%
(SINA 1,72%)
26,47%
82,0%
99,5
%
SIAS S.p.A.
18,0%
0,5%
99,9%
ASA
(Costanera
Norte - Cile)
SATAP
40,3%
59,7%
100%
45,0%
41,2%
ITINERA+
Grassetto
Itinera
Lavori
Holding
Piemonte e
Valle d'Aosta
65,1%
SAV
ATIVA
20,0%
Pavimental
87,4%
60,0%
RoadLink
Link
Road
Holdings (UK)
36,5%
SITAF
CISA
0,08%
SALT
SALT
60,8%
(ITINERA 5%)
SSAT
Asti-Cuneo
+ ARGO
(40,0%)
ADF
CODELFA
96,2%
SINELEC
6,2%
50,0%
SINECO
65,0%
1,1%
26,45%
84,4%
SIN
A
2,17%
36,5%
SITRASB
Motorway Concessions
Technological and tlc services towards motorway concession companies
Holding Companies
Engineering, planning and infrastructure/maintenance
Costruction, planning, services, other (Non consolidated)
4
OWNERSHIP STRUCTURE
Holding companies
TREASURY STOCKS
HSBC BANK PERNSION TRUST LTD
GOLDMAN SACHS INTERN. LTD
FONDAZIONE CR-TO
ASSICURAZIONI GENERALI
GROUP
10,09% LAZARD ASSET
MANAGEMENT LLC.
2,85%
2,04%
2,53%
2,59%
5,01%
3,68% ASSICURAZIONI
GENERALI GROUP
5,59% LAZARD ASSET
MANAGEMENT LLC
17,20% FREE FLOAT
21,75% FREE FLOAT
53,14% GAVIO GROUP
73,53% GAVIO GROUP
5
OWNERSHIP STRUCTURE
Main motorway companies
PUBLIC AUTHORITIES
%
SUBSIDIARIES
AUTOCISA
Società Autostrada
Asti-Cuneo S.p.A.
99,87
0,13
-
-
-
-
-
100
87
6
2
4
-
-
1
100
84
5
2
9
-
-
-
100
68
4
-
-
28
-
-
100
65
-
-
-
-
35
-
100
61
22
5
6
-
-
6
100
41
41
-
18
-
-
-
100
37
11
11
9
-
32
-
100
36
-
-
-
64
-
-
100
6
Current network managed by the
SIAS Group
CONCESSIONAIRE
SUBSIDIARIES
SATAP [A4]
SATAP [A21]
SALT
CISA
SAV
AT-CN
ADF
ATIVA
LENGHT KM
MATURITY
S. BERNARDO
130,3
167,7
AOSTA
2017
M. BIANCO
IVREA
MILANO
FREJUS
PIACENZA
TORINO
PARMA
ASTI
ALESSANDRIA
VOLTRI
EQUITY INVESTMENTS
SITAF [A32, T4]
SITRASB
VENTIMIGLIA
ROAD LINK (A69) – UK
COSTANERA NORTE – CHILE (THROUGH ASA)
2026
154,9
182,0(1)
59,5
90 (2)
113,2
155,8
2019
2031
2032
- (3)
2021
2016
SESTRI L.
CUNEO
SAVONA
LA SPEZIA
VIAREGGIO
PISA
LUCCA
LIVORNO
94
12,8
84
43
2050
2034
2026
2033
ROSIGNANO M.
1.287,2
SIGNIFICANT INVESTMENTS
MILANO SERRAVALLE – MILANO TANGENZIALI
SOCIETA’ AUTOSTRADA TIRRENICA
(1) Inclusive of the planned 81 km stretch linking Parma to the Autostrada del Brennero
(2) Under construction
(3) 23,5 yrs. starting from the completion of the infrastructure
7
SIAS GROUP: comparison with main
European players
SIAS
Atlantia
Abertis
Cintra
BRISA
ITINERE
Average expiry of the motorway
concessions
2026
2037
2026
2040
2032
n.av.
Network managed (km)
1.287
3.413
3.350
2.481
1.063
3.373
Key consolidated figures 1H 2008
(€/mln):
Revenues
Ebitda
% on Revenues
386
223
58%
1.673
1.777
1.043
1.111
346
217
211
62,4%
62,5%
67,1%
68%
71%
516
319
298
128
822
717
253
118
130
% on Revenues
33%
49,1%
40,3%
49%
37%
44%
Net Income
59(1)
367
331
(51)
52
4
% on Revenues
15%
22%
18,6%
16%
-
1.475
1.400
4.110
9.375
5.007
12.999
n.av.
9.497
1.534
3.640
563
4.637
0,9x
2,3x
2,6x
n.av.
2,4x
8,2x
Ebit
Equity
Net debt
D/E
(1)
-
Excluding “non recurring items”
8
SIAS GROUP: comparison with main
European players(1) (cont’d)
Atlantia
SIAS
Equity value (€/mn)
1.150
8.684
Enterprise value – EV (€/mn)
2.945
18.994
EV/EBITDA (2008 E)
5,7X
Debt/EBITDA (2007) (2)
2,8X
OPERATING CASH FLOW
(2007) (€/mn) (2)
332
(1)
(2)
8,7X
Abertis
9.639
21.387
8,8X
4,5X
5,7X
1.252
1.526
Cintra
4.192
BRISA
ITINERE
3.883
2.844
12.632
6.867
7.468
16,1X
12,8X
14,3X
13,8X
7,0X
11,8x
783
438
326
Source: Equity research, Factset as of 30 September 2008
For the SIAS Group, the financial results refer to the “pro-forma” consolidated financial statements as at 31 December 2007
9
SIAS GROUP: comparison with main
European players (cont’d)
Enterprise
Value (EV)
EV/EBITDA
2008E
25.000
17,0
16,1x
21.387
14,3x
20.000
15,0
18.994
12,8x
13,0
15.000
12.632
11,0
10.000
8,7x
8,8x
6.867
7.468
5.000
7,0
2.945
0
5,7x
SIAS
9,0
5,0
ATLANTIA
ABERTIS
Source: Equity Research, Factset as of 30 September 2008
CINTRA
BRISA
ITINERE
10
GROUP STRUCTURE
FINANCIAL RESULTS
REGULATION
CONCLUSION
11
ASTM - 6 MONTHS RESULTS 2008 & 2007
(Eu mn)
30/06/2008
REVENUES:
30/06/2007
“Pro-forma”
351
346
- REVENUES FROM CONSTRUCTION SECTOR
1
6
- REVENUES FROM ENGINEERING SECTOR
4
6
- REVENUES FROM TECHNOLOGICAL SECTOR
7
15
27
30
- TOLL REVENUES
- OTHER REVENUES
TOTAL REVENUES
390
(205)
OPERATING COSTS
CAPITALIZATION OF INTERNAL CONSTRUCTION COSTS 42
403
(215)
54
227
58,2%
242
60,0%
EBITDA
EBITDA MARGIN
12
ASTM – 1st HALF 2008
EBITDA BY SECTOR
MOTORWAY SECTOR
95%
ENGINEERING SECTOR
1%
CONSTRUCTION SECTOR
TECHNOLOGICAL SECTOR
2%
2%
13
ASTM – NET FINANCIAL INDEBTEDNESS
(Eu mn)
Cash and cash equivalents
Financial receivables
Short-term indebtedness
Long-term indebtedness
NET FINANCIAL INDEBTEDNESS
Including the NPV
OF THE “CENTRAL GUARANTEE FUND” DEBT
30/06/2008
31/12/2007
286
21
(298)
424
(1.303)
21
(268)
(1.324)
(1.294)
(1.148)
(1.661)
(1.565)
Short-term indebtedness
Short-term indebtedness
18,6%
16,8%
Long-term indebtedness
Long-term indebtedness
82,4%
83,2%
30/06/2008
31/12/2007
14
SIAS - 6 MONTHS RESULTS 2008 & 2007
(Eu mn)
30/06/2008
30/06/2007
“Pro-forma”
REVENUES:
351
346
- REVENUES FROM CONSTRUCTION and ENGINEERING SECTORS
1
6
- REVENUES FROM TECHNOLOGICAL SECTOR
7
15
- OTHER REVENUES
27
30
TOTAL REVENUES
386
397
OPERATING COSTS
(190)
(200)
- TOLL REVENUES
CAPITALIZATION OF INTERNAL CONSTRUCTION COSTS
EBITDA
EBITDA MARGIN
27
30
223
57,8%
237
59,7%
15
SIAS 1st HALF 2008
EBITDA BY SECTOR
CONSTRUCTION &
ENGINEERING SECTORS
2%
18%
MOTORWAY SECTOR
17%
97%
A4 Stretch
10%
AUTOCISA
17%
25%
A21 Stretch
7%
6%
(1)
TECHNOLOGICAL SECTOR
1%
16
SIAS - BALANCE SHEET
(Eu mn)
ASSETS
Tangible &
Intangible Assets
Non current
Financial Assets
Other Assets
LIABILITIES
1.475
1.478
3.089
3.143
1.408
1.323
446
390
2007
424
407
1H 2008
31/12/2007
DEBT/EQUITY
0,9
1.124
1.099
2007
1H 2008
Shareholders'
Equity
Net Financial
Indebtedness
Other liabilities
30/06/2008
0,9
17
SIAS – NET FINANCIAL INDEBTEDNESS
(Eu mn)
Cash and cash equivalents
Financial receivables
Short-term indebtedness
Long-term indebtedness
NET FINANCIAL INDEBTEDNESS
Including the NPV
OF THE “CENTRAL GUARANTEE FUND” DEBT
30/06/2008
31/12/2007
270
21
(299)
341
(1.393)
21
(271)
(1.413)
(1.400)
(1.323)
(1.768)
(1.740)
Short-term indebtedness
Short-term indebtedness
18,6%
16,1%
Long-term indebtedness
82,4%
30/06/2008
Long-term indebtedness
83,9%
31/12/2007
18
SIAS - BOND
ISSUE SIZE: 335 Eu millions (N° 31,9 millions bonds)
BONDS HELD BY THE GAVIO GROUP: N° 9,8 millions (31%)
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
19
GROUP STRUCTURE
FINANCIAL RESULTS
REGULATION
CONCLUSION
20
ASTM & SIAS GROUP - INVESTMENT PLAN
(Eu bn)
Investments
Plan (1)
Status of the
Concession/Financial Plan
Currently
under
Approved
negotiation
0,8
0,2
1,0
a
ATIVA
0,15
a
SALT
0,3
a
ADF
0,2
a
CISA
2,0
ASTI-CUNEO
1,0
SATAP: A4 Stretch
A21 Stretch
(2)
a
a
(1) Expected amount from 2008 onwards
(2) Expected Government contribution by 0,2 bn
The amont of additional investments on SAV is negligible
21
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%
1997
1998
1999
2000
ITALIAN GDP
2001
2002
2003
2004
2005
2006
2007 1H/2008
TOTAL TRAFFIC ON MOTORWAYS
22
GROUP STRUCTURE
FINANCIAL RESULTS
REGULATION
CONCLUSION
23
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
24
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25