June 2008June 2008
AUTOSTRADA TORINO – MILANO SOCIETA’ INIZIATIVE AUTOSTRADALI E SERVIZI AUTOSTRADA TORINO – MILANO SOCIETA’ INIZIATIVE AUTOSTRADALI E SERVIZI
GAVIO GROUPGAVIO GROUP
2
AGENDA
REGULATION
GROUP STRUCTURE
FINANCIAL RESULTS
CONCLUSION
3
REGULATION
GROUP STRUCTURE
FINANCIAL RESULTS
CONCLUSION
4
Current Group Structure(after the Re-organization)
Motorway Concessions Technological and tlc services towards motorway concession companies
Holding Companies Engineering, planning and infrastructure/maintenance
Costruction, planning, services, other (Non consolidated)
ASTM S.p.A.
Aurelia S.p.A. /Argo Finanziaria S.p.A.
51,15%
SIAS S.p.A.
SATAP
SAVATIVA
Road Link Holdings (UK)
65,1%41,2%
99,9%
ITINERA+Grassetto
Lavori
40,3%
Holding Piemonte e
Valle d'Aosta
20,0%
SITRASB
36,5%
SALTCISA
ADF
84,4% 87,4%
60,8%(40,0%)
CODELFA
50,0%
SITAF
36,5%
6,2%1,1%
59,7%
100%
Pavimental
ASA(Costanera
Norte - Cile)
45,0%
Market
Motorway Concessions Technological and tlc services towards motorway concession companies
Holding Companies Engineering, planning and infrastructure/maintenance
Costruction, planning, services, other (Non consolidated)
ASTM S.p.A.
Argo Finanziaria S.p.A.
SIAS S.p.A.
63,42%(SINA 1,72%)
SATAP
SAVATIVA
Road Link
65,1%41,2%
99,9%
Itinera
SINECOSINA
82,0%
Piemonte e
20,0%
99,5%
SITRASB
36,5%
SALTCISA
ADF
84,4% 87,4%
60,8%
SSAT
60,0%
+ ARGO
CODELFA
50,0%
SITAF
6,2%59,7%
0,07%
100%
0,5%
Pavimental
26,45%
18,0%
11,14%
SINELEC
96,2%
(Costanera
45,0%
25,44%
2,17%
Market
AstiAsti--CuneoCuneo
65,0%(ITINERA 5%)
OWNERSHIP STRUCTUREHolding companies
5
TREASURY STOCKS
ASSICURAZIONI GENERALI GROUP
FREE FLOAT
GAVIO GROUP51,14%
25,02%
10,05%
1,62%
5,01%FONDAZIONE CR-TO
2,04%
LAZARD ASSETMANAGEMENT LLC.
ASSICURAZIONI GENERALI GROUP
5,59%
FREE FLOAT16,75%
GAVIO GROUP73,98%
3,68%
LAZARD ASSET MANAGEMENT LLC
2,59%2,53% GOLDMAN SACHS INTERN. LTD
HSBC BANK PERNSION TRUST LTD
OWNERSHIP STRUCTUREMain motorway companies
AUTOCISA
%
PUBLIC AUTHORITIES
GROUP
MUNICIPALITIES
OTHERPROVINCES
REGIONS
ANASOTHER
TOTAL
6
99,87
68
41
37
36
87
61
84
65
-
-
-
11
-
2
5
2
-
-
-
18
9
-
4
6
9
-
-
28
-
-
64
-
-
-
-
-
-
-
32
-
-
-
-
35
-
-
-
-
-
1
6
-
-
100
100
100
100
100
100
100
100
100
0,13
4
41
11
-
6
22
5
-
SUBSIDIARIES
Società Autostrada Asti-Cuneo S.p.A.
Group Re-organization - Effects
7
IMPROVED VISIBILITY OF EACH OF THE BUSINESS LINES RUN BY THE GROUP
CONCENTRATED THE MOTORWAY BUSINESS IN SIAS TO FAVOUR THE OPTIMAL MANAGEMENT OF THE FINANCIAL RESOURCES AMONG THE VARIOUS CONCESSIONS
INCREASED THE CRITICAL MASS OF THE MOTORWAY BUSINESS
GOT A BOOK VALUE OF THE INVESTED CAPITAL CLOSER TO MARKET VALUE
OPTIMISED FINANCIAL RATIOS (ALSO IN VIEW OF BEING RATED BY AN INTERNATIONAL RATING AGENCIES)
INCREASED THE SIAS’ PERSPECTIVE FREE-FLOAT AND LIQUIDITY
8
Group Re-organization – Key points
Following the completion of the 1st phase of the Reorganization, the Groupstructure features:
a listed holding company (ASTM) - diversified and geared towardsgrowth in the engineering, planning and infrastructure/maintenancesectors, as well as, in the future, in other related sectors to be identifiedon the basis of market opportunities - with a straightforward valuation asSIAS’s upside will be easily reflected in ASTM’s NAV;
a listed sub-holding company (SIAS), that became a stronger motorwayplayer (approx. 1,200 km network managed), freshly poised to exploit growth opportunities both in Italy and on the international arena (also via JV). The financial structure of the “new” SIAS leaves scope for furthervalue-enhancing re-leverage.
SAVONASAVONA
VENTIMIGLIA
M. BIANCOIVREAIVREA
TORINOTORINO
VOLTRIVOLTRI SESTRI L.SESTRI L.
PARMAPARMA
LA SPEZIAVIAREGGIO
PISA LUCCALUCCALIVORNO
ASTIASTI
CUNEOCUNEO
AOSTAAOSTA
S. BERNARDO
MILANOMILANO
FREJUSPIACENZAPIACENZA
ROSIGNANO M.
ALESSANDRIAALESSANDRIA
TOTAL TOTAL 1.287,21.287,2
(1)(2)(3)
Inclusive of the planned 81 km stretch linking Parma to the Autostrada del BrenneroUnder constructionCostanera Norte S.A. (through ASA) - Chile
Società Italiana Traforo Autostradale del Frejus p. A.Società Italiana Traforo del Gr.S.Bernardo S.p.A.Road Link (A69) Holding Ltd - UKCostanera Norte S.A. - Chile (through ASA)
EQUITY INVESTMENTSAutostrada Torino-Alessandria-Piacenza S.p.A Autostrade Valdostane S.p.A.Autostrada Torino-Ivrea-Valle d’Aosta S.p.A.
SUBSIDIARIES
SIGNIFICANT INVESTMENTSMilano Serravalle – Milano Tangenziali S.p.A.
Autostrada dei Fiori S.p.A.Autostrada Ligure Toscana S.p.A.Autocamionale della Cisa S.p.A.
Società Autostrada Tirrenica S.p.A.
9
Km.Km.
130,3130,3167,7167,7155,8155,859,559,594,094,012,812,884,084,0
SATAPSATAP-- TorinoTorino--Milano Milano stretchstretch-- TorinoTorino--Piacenza Piacenza stretchstretch
ATIVAATIVASAVSAVSITAFSITAFSITRASBSITRASBROAD LINK (A69)ROAD LINK (A69)
154,9154,9113,2113,2182,0182,090,090,043,043,0
SALTSALTADFADFCISACISAASTIASTI--CUNEOCUNEOCOSTANERA NORTE S.A.COSTANERA NORTE S.A.
Current network managed by the SIAS Group
(1)(2)(3)
SIAS Group motorway concessions
10
SATAP (A 4 stretch)
SATAP (A 21 stretch)
ATIVA
SAV
SITAF
SITRASB
ROAD LINK HOLDING Ltd. (UK)
Concession expiryConcession expiry
2026
2017
2016
2032
2050
2034
2026
11(1) According to the agreement signed, the concession has been extended to 2031(2) 23,5 yrs. starting from the completion of the infrastructure
SALT
ADFCISAASTI CUNEO COSTANERA NORTE (Chile)
Concession expiryConcession expiry
2019
20212010
-2033
(1)
SIAS Group motorway concessions(cont’d)
(2)
(1) For the SIAS Group, the financial results refer to the “pro-forma” consolidated financial statements as at 31 December 2007
12
SIAS GROUP: comparison with main European players
SIAS Atlantia Abertis
2026 2037 2026
1.295 3.408 3.350
812 3.272 3.620 1.025
477 2.068 2.269 59% 63,2% 62,7%
315 1.643 n.av.39,0% 50,2% n.av.
170 694 682 (26) 21,0% 2,1% 18,8%
1.478 4.010 5.020 1.691 1.323 9.241 12.873 9.572
2,8x 4,5x 5,7x
Average expiry of the motorwayconcessions
Network managed (km)
Key consolidated figures 2007
(€/mln )(1):
Revenues
Ebitda% on Revenues
Ebit% on Revenues
Net Income% on Revenues
EquityNet debt
D/EbitdaD/E 0,9x 2,3x 2,6x
Cintra
2040
2.481
694 67,7%
508 49,6%
n.a.
1.280
13,8x 7,5x
BRISA
2032
1.063
647
460 71,1%
289 43,4%
259 40,0%
3.208
7,0x 1,9x
(1) Source: Equity research, Factset as of May 2008 13
SIAS GROUP: comparison with main European players(1) (cont’d)
SIAS Atlantia Abertis Cintra BRISA
2.017
3.802
11.411 13.017 4.744 5.415
6,1X
20.842 23.825 13.513
14,8X
7.768
Equity value (€/mn)
Enterprise value – EV (€/mn)
EV/EBITDA (2008 E) 9,1X 9,2X 14,7X
14
SIAS GROUP: comparison with main European players (cont’d)
3.802
20.842
23.825
13.513
7.768
0
5.000
10.000
15.000
20.000
25.000
30.000
SIAS ATLANTIA ABERTIS CINTRA BRISA
5,0x
9,0x
11,0x
13,0x
15,0x
7,0x
EnterpriseValue (EV) EV/EBITDA
2008E
Source: Equity Research, Factset as of March 2008
14,8x14,7x
9,2x9,1x
6,1x
3.802
20.842
23.825
13.513
7.768
0
5.000
10.000
15.000
20.000
25.000
30.000
SIAS ATLANTIA ABERTIS CINTRA BRISA
5,0x
9,0x
11,0x
13,0x
15,0x
7,0x
14,8x14,7x
9,2x9,1x
6,1x
15
REGULATION
GROUP STRUCTURE
FINANCIAL RESULTS
CONCLUSION
ASTM - 3 MONTHS RESULTS 2008 & 2007 (IAS/IFRS)(Eu mn)
16
REVENUES:
31 March 2008
- REVENUES FROM ENGINEERING SECTOR
TOTAL REVENUES
CAPITALIZATION OF INTERNAL CONSTRUCTION COSTS
165124
15187187
(100)(100)1717
182182(104)(104)
26
1.2071.6291.2071.629
NET FINANCIAL INDEBTEDNESSNET FINANCIAL INDEBTEDNESS(Including the NPV of the “Central Guarantee Fund” debt)
NET FINANCIAL INDEBTEDNESSNET FINANCIAL INDEBTEDNESS(Including the NPV of the “Central Guarantee Fund” debt)
- REVENUES FROM CONSTRUCTION SECTOR
- OTHER REVENUES
- TOLL REVENUES
OPERATING COSTS
158234
15
EBITDAEBITDA
31 March 2007
104104 104104
Pro-forma
- REVENUES FROM TECHNOLOGICAL SECTOR
17
CONSTRUCTION SECTOR
95%95%MOTORWAY SECTOR
ASTM – 1st QUARTER 2008 EBITDA BY SECTOR
2%2% 2%2%TECHNOLOGICAL SECTOR
ENGINEERING SECTOR 1%1%
SIAS - 3 MONTHS RESULTS 2008 & 2007 (IAS/IFRS)(Eu mn)
18
REVENUES:
31 March 2008
- REVENUES FROM TECHNOLOGICAL SECTOR
TOTAL REVENUES
CAPITALIZATION OF INTERNAL CONSTRUCTION COSTS
16514
15185185(94)(94)
1212
180180(96)(96)
19
1.3761.7991.3761.799
NET FINANCIAL INDEBTEDNESSNET FINANCIAL INDEBTEDNESS(Including the NPV of the “Central Guarantee Fund” debt)
NET FINANCIAL INDEBTEDNESSNET FINANCIAL INDEBTEDNESS(Including the NPV of the “Central Guarantee Fund” debt)
- REVENUES FROM CONSTRUCTION and ENGINEERING SECTORS
- OTHER REVENUES
- TOLL REVENUES
OPERATING COSTS
15825
15
EBITDAEBITDA
31 March 2007
103103 103103
Pro-forma
19
CONSTRUCTION SECTOR
96%96%
MOTORWAY SECTOR
SIAS 1st QUARTER 2008 EBITDA BY SECTOR
AUTOCISA
2%2%TECHNOLOGICAL SECTOR
18%
8%7%
18%
16%
9%
24%
2%2%
(1)
(1) ATIVA is consolidated on a “proportional basis” (41,17%)
A4 Stretch
A21 Stretch
ISSUE SIZE: 335 Eu millions (N° 31,9 millions bonds)
SIAS - BOND
INTEREST: 2,625%
CONVERSION RIGHT:
20
PAR VALUE: 10,50 Eu
DURATION: 12 yrs (2005 – 2017)
• FROM THE END OF THE 5TH YEAR• 1:1 AT PAR
BONDS HELD BY THE GAVIO GROUP: N° 9,9 millions (31%)
21
REGULATION
GROUP STRUCTURE
FINANCIAL RESULTS
CONCLUSION
22
ASTM & SIAS GROUP - INVESTMENT PLAN
ATIVA 0,15
(1) Expected amount from 2008 onwards
The amont of additional investments on SAV are negligible
(1) Expected amount from 2008 onwards
The amont of additional investments on SAV are negligible
InvestmentsPlan (1)
SATAP: A4 StretchA21 Stretch
0,80,2
(Eu bn)
1,0
a
a
Status of the Concession/Financial Plan
ApprovedCurrently
under negotiation
23
ASTM & SIAS GROUP - INVESTMENT PLAN
CISA 2,0
ASTI-CUNEO 1,0
InvestmentsPlan (1)
ADF
(Eu bn)
0,2
0,3SALT
(1) Expected amount from 2008 onwards(2) Expected Government contribution by 0,2 bn
a
a
a
a(2)
ApprovedCurrently
under negotiation
Status of the Concession/Financial Plan
24
VALUE DRIVERS: TRAFFIC GROWTH
TOTAL TRAFFIC ON MOTORWAYSTOTAL TRAFFIC ON MOTORWAYS
2003200319971997 19981998 20042004 20052005 2006200619991999 20002000 20012001 20022002 20072007-1.5%
-0.5%
0.5%
1.5%
2.5%
3.5%
4.5%
TRAFFIC TREND HISTORICALLY OUTPERFORMED GDP GROWTH EVEN IN RECESSION YEARSTRAFFIC TREND HISTORICALLY OUTPERFORMED GDP GROWTH EVEN IN RECESSION YEARS
ITALIAN GDPITALIAN GDP
Q1 2008Q1 2008
25
REGULATION
GROUP STRUCTURE
FINANCIAL RESULTS
CONCLUSION
CONCLUSION
26
Long term viewof the business,
dedicatedmanagement
No competition fromother transportation
systems
Growing opportunitiesarising from the “new” stretches
Substainableprofitability
growth rates
Conservative financialprofile and balanced
growth strategy(also abroad)
Value creationthrough lasting,
experiencedmotorway know-how
and operatingefficiency
27
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