April 2008 AUTOSTRADA TORINO – MILANO SOCIETA INIZIATIVE AUTOSTRADALI E SERVIZI GAVIO GROUP.

April 2008April 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

Asti-CuneoAsti-Cuneo

65,0%(ITINERA 5%)

OWNERSHIP STRUCTUREHolding companies

5

TREASURY STOCKS

ASSICURAZIONI GENERALI GROUP

FREE FLOAT

GAVIO GROUP51,15%

29,01%

10,05%

0,78%

5,01%

FONDAZIONE CR-TO4,00%

LAZARD ASSET MANAGEMENT LLC.

ASSICURAZIONI GENERALI GROUP

5,59%

FREE FLOAT16,52%

GAVIO GROUP74,56%

3,33%

LAZARD ASSET MANAGEMENT LLC

SIAS’ ownership structure is calculated on the “new” share capital (227,5 million shares)

OWNERSHIP STRUCTUREMain motorway companies

AUTOCISA

%

PUBLIC AUTHORITIES

GROUP

MUNICIP

ALITIE

S

OTHER

PROVINCES

REGIONS

ANAS

OTHER

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 Group structure features:

a listed holding company (ASTM) - diversified and geared towards growth in the engineering, planning and infrastructure/maintenance sectors, as well as, in the future, in other related sectors to be identified on the basis of market opportunities - with a straightforward valuation as SIAS’s upside will be easily reflected in ASTM’s NAV;

a listed sub-holding company (SIAS), that became a stronger motorway player (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 further value-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 1.295,11.295,1

(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.

130,3130,3167,7167,7163,7163,7

59,559,594,094,012,812,884,084,0

SATAPSATAP - Torino-Milano stretch- Torino-Milano stretch - Torino-Piacenza stretch- Torino-Piacenza stretchATIVAATIVASAVSAVSITAFSITAFSITRASBSITRASBROAD LINK (A69)ROAD LINK (A69)

154,9154,9113,2113,2182,0182,0

90,090,043,043,0

SALTSALTADFADFCISACISAASTI-CUNEOASTI-CUNEOCOSTANERA 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

ADF

CISA

ASTI CUNEO

COSTANERA NORTE (Chile)

Concession expiryConcession expiry

2019

2021

2010

-

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 motorway concessions

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 March 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

Enterprise Value (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

REVENUES:

31/12/2007“Pro-forma

ASTM 2007 & 2006 – “PRO-FORMA” RESULTSASTM 2007 & 2006 – “PRO-FORMA” RESULTS

TOTAL REVENUES

CAPITALIZATION OF INTERNAL CONSTRUCTION COSTS

71410132759

823

(445)112

49060%

4494

(167)327(14)

(112)(89)112

3361.1481.565

3361.1481.565

(Eu mn)

16

OPERATING CASH-FLOWNET FINANCIAL INDEBTEDNESSNET FINANCIAL INDEBTEDNESS(Including the NPV of the “Central Guarantee Fund” debt)


(1)(1)

(1) Loans guaranteed by the Government: 25 Eu mn

- REVENUES FROM MOTORWAYS SECTOR - REVENUES FROM CONSTRUCTION SECTOR - REVENUES FROM ENGINEERING SECTOR - REVENUES FROM TECHNOLOGICAL SECTOR - OTHER REVENUES

OPERATING COSTS

EBITDAEBITDA margin

EBITDA “adjusted”

EBIT

NET INCOME

NON RECURRING ITEM

AMORTISATION & DEPRECIATION

FINANCIAL RESULTINCOME TAXESMINORITY INTERESTS


69310121758

787

(430)122

47961%

2481

(150)331(16)

(120)(86)109

3321.000 1.431

3321.000 1.431

17

CONSTRUCTION SECTOR

92%92%

MOTORWAY SECTOR

ASTM – 2007 “PRO-FORMA”EBITDA BY SECTOR

3%3% 3%3%TECHNOLOGICAL SECTOR

ENGINEERING SECTOR 2%2%

18

ASTM 2007 & 2006 “PRO-FORMA” BALANCE SHEET(Eu mn)

LIABILITIES

1.239 1.171

1.148

1.560 1.666

1.000

Shareholders'Equity

Net FinancialIndebtedness

Other liabilities

ASSETS

392 401

468

2.882 3.116

525

Tangible &Intangible Assets

Non currentFinancial Assets

Other Assets

8%

15%

7%

2006Pro-forma

2006Pro-forma20072007 2007

DEBT/EQUITY

DEBT/EBITDA

31/12/2006 31/12/2007

0,6

2,1

0,7

2,3

REVENUES:


SIAS 2007 & 2006 – “PRO-FORMA” RESULTSSIAS 2007 & 2006 – “PRO-FORMA” RESULTS

TOTAL REVENUES

CAPITALIZATION OF INTERNAL CONSTRUCTION COSTS

71411

-2760

812

(417)82

47759%

3480

(165)315(13)

(104)(28)170

3321.3231.740

3321.3231.740

(Eu mn)

19



(1)(1)

(1) Loans guaranteed by the Government: 25 Eu mn

- REVENUES FROM MOTORWAYS SECTOR - REVENUES FROM CONSTRUCTION SECTOR - REVENUES FROM ENGINEERING SECTOR - REVENUES FROM TECHNOLOGICAL SECTOR - OTHER REVENUES

OPERATING COSTS

EBITDAEBITDA margin

EBITDA “adjusted”

EBIT

NET INCOME

NON RECURRING ITEM

AMORTISATION & DEPRECIATION

FINANCIAL RESULTINCOME TAXESMINORITY INTERESTS


6936-

1859

776

(402)92

46660%

1467

(149)318(22)

(111)(30)155

3211.171 1.602

3211.171 1.602

20

CONSTRUCTION SECTOR

94%94%

MOTORWAY SECTOR

SIAS 2007 “PRO-FORMA” EBITDA BY SECTOR

AUTOCISA

3%3%TECHNOLOGICAL SECTOR

15,6

5,6

5,6

14,818,1

11

23,7

3%3%

(1)

(1) ATIVA is consolidated on a “proportional basis” (41,17%)

A4 Stretch

A21 Stretch

21

SIAS 2007 & 2006 “PRO-FORMA” BALANCE SHEET(Eu mn)

LIABILITIES

1.180 1.124

1.323

1.376 1.478

1.171

Shareholders'Equity

Net FinancialIndebtedness

Other liabilities

ASSETS

376 390

446

2.854 3.089

497

Tangible &Intangible Assets

Non currentFinancial Assets

Other Assets

8%

13%

7%

2006Pro-forma

2006Pro-forma20072007 2007

DEBT/EQUITY

DEBT/EBITDA

31/12/2006 31/12/2007

0,9

2,5

0,9

2,8

22

SIAS ANALIYSIS OF THE 2007 “PRO-FORMA” CONSOLIDATED RESULTS

EBITDA 2007 FCF 1Net CF

2007 FCF 2Financial expenses,

taxes

Maintenance Capex Dividends

€ 477m

(€ 117m)

€ 360m

(€ 78m)

€ 282m

(€ 75m)

€ 207m

Strong cash flow generation

+8,1% VS. 2006

ISSUE SIZE: 335 Eu millions (N° 31,9 millions bonds)

SIAS - BOND

INTEREST: 2,625%

CONVERSION RIGHT:

23

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%)

24

REGULATION

GROUP STRUCTURE

FINANCIAL RESULTS

CONCLUSION

25

ASTM & SIAS GROUP - INVESTMENT PLAN

ATIVA 0,15

(1) Expected amount from 2008 onwards(2) The effectiveness of the concession agreements is subject to the completion of the “authorization process”, still in progress

The amont of additional investments on SAV are negligible

(1) Expected amount from 2008 onwards(2) The effectiveness of the concession agreements is subject to the completion of the “authorization process”, still in progress

The amont of additional investments on SAV are negligible

Investments Plan (1)

SATAP: A4 Stretch A21 Stretch

0,80,2

(Eu bn)

1,0

Status of the Plan

Approvedby

ANAS

To be approved by ANAS

(2)

(2)

Status of the Plan

Approvedby

ANAS


26

ASTM & SIAS GROUP - INVESTMENT PLAN

CISA 2,0

ASTI-CUNEO 1,0

Investments Plan (1)

ADF

(Eu bn)

0,2

0,3SALT

(1) Expected amount from 2008 onwards(2) The effectiveness of the concession agreements is subject to the completion of the “authorization process”, still in progress(3) The concession is effective from 11 February, 2008(4) Expected Government contribution by 0,2 bn

Status of the Plan

Approvedby

ANAS


(2)

(3)(4)

27

REGULATION

GROUP STRUCTURE

FINANCIAL RESULTS

CONCLUSION

CONCLUSION

28

Long term viewof the business,

dedicatedmanagement

No competition from other transportation

systems

Growing opportunities arising from the “new” stretches

Substainableprofitabilitygrowth rates

Conservative financial profile and balanced

growth strategy (also abroad)

Value creation through lasting,

experienced motorway know-how

and operating efficiency

29

www.autostradatomi.itwww.autostradatomi.it

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April 2008 AUTOSTRADA TORINO – MILANO SOCIETA INIZIATIVE AUTOSTRADALI E SERVIZI GAVIO GROUP.

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Transcript of April 2008 AUTOSTRADA TORINO – MILANO SOCIETA INIZIATIVE AUTOSTRADALI E SERVIZI GAVIO GROUP.