GAVIO GROUP NOVEMBER 2009. KEY FACTS (1)- Traffic volumes:+ 1 mil - Asti-Cuneo stretch:+ 1 mil -...

GAVIO GROUP

GAVIO GROUP

NOVEMBER 2009

KEY FACTS

(1) - Traffic volumes: + € 1 mil- Asti-Cuneo stretch: + € 1 mil- Tariff increase: + € 12 mil

Change in Toll revenues + € 14 mil2

3Q 2009

ASTM - 3Q & 9 MONTHS 2009(Eu mn)

3

Revenues:

Revenues from motorways sector

Other sectors’ revenues

Total Revenues

Operating costs

Capitalization

of internal construction costs

EBITDA

ASTM

30 sept 2009 30 sept 2008

586,7

59,8

646,5

(321,0)

41,2

366,7

577,8

62,8

640,6

(333,2)

59,0

366,4

ASTM

3Q 2009 3Q 2008

227,0

20,0

247,0

(102,4)

11,5

156,1

211,1

23,7

234,8

(112,1)

16,8

139,5

By the end of the current year, will be submitted to the BoD an interim dividend proposal

SIAS – 3Q & 9 MONTHS 2009(Eu mn)

4

Revenues:

Revenues from motorways sector

Other sectors’ revenues

Total Revenues

Operating costs

Capitalization

of internal construction costs

EBITDA

SIAS

30 sept 2009 30 sept 2008

586,7

49,5

636,2

(296,9)

21,2

360,5

577,8

57,8

635,6

(311,5)

35,1

359,2

SIAS

3Q 2009 3Q 2008

227,0

16,0

243,0

(94,3)

4,4

153,1

211,1

22,2

233,3

(105,1)

8,4

136,6

On November 12, 2009 the Board of Directors of SIAS approved an interim dividend equal to eur 0,120 for each of

the 227.500.000 ordinary shares (eur 27.3 million)

TRAFFIC BY QUARTER

(1) Inclusive of the “leap year” effect (2) Light traffic: +2.28%

Net of extraordinary events, we expect that traffic trends will fall by 2% in 2009

1Q 2008 2Q 2008 3Q 2008 4Q 2008

+2,90%

-2,41%-1,74%

-3,13%

(2)

(1)FY 2008: - 1,21%

-8,33%

-0,65%

1Q 2009 2Q 2009

1/1- 30/9/2009: - 2,37%

5

3Q 2009

+0,94%

Table of Contents

1. GROUP STRUCTURE

2. FINANCIAL RESULTS

3. TARIFF INCREASES AND INVESTMENT PLAN

4. INTERNATIONAL DEVELOPMENT – CHILE

5. CONCLUSION

6

1. GROUP STRUCTURE




5. CONCLUSION

7

Current Group Structure

Motorway Concessions Technological and tlc services towards motorway concession companies

Holding Companies Engineering, planning and infrastructure/maintenance

Costruction, planning, services, other (Non consolidated)

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.

51,00%

SIAS S.p.A.

SATAP

SAVATIVA

65,1%41,2%

99,9%

ITINERA

40,3%

Holding Piemonte e Valle d'Aosta

20,0%

SITRASB

36,5%

SALTCISA

ADF

84,4% 87,4%

60,8%(39,01%)

CODELFA

SITAF

36,5%

6,2%

1,1%

100%

(Chile)

45,0%

Market ASTM S.p.A.

SIAS S.p.A.SIAS S.p.A.

63,42%(SINA 1,72%)

SATAP

SAVATIVA

Road Link

65,1%

99,9%

SINECOSINA

82,0%99,5%

SITRASB

SALTCISA

ADF

84,4% 87,4%

60,8%

58,05%

+ ARGO

50,0%

SITAF 59,7%

0,08%

0,5%

CODELFA Pavimental

26,45%

18,0%

9,92%

ASA - ApC

26,66%

1,4%

Market

Asti-Asti-CuneoCuneo

65,0%(ITINERA 5%)

SINELEC

33,58%

(16,42%) + FPI

ABC

14,1%

32,4% 25,4%

28,1%

8

OWNERSHIP STRUCTUREHolding companies

TREASURY STOCKS

ASSICURAZIONI GENERALI GROUP

FREE FLOAT

GAVIO GROUP51,02%

28,40%

9,98%

3,02%

4,99%

FONDAZIONE CR-TO

LAZARD ASSETMANAGEMENT LLC.

ASSICURAZIONI GENERALI GROUP

4,99%

FREE FLOAT18,36%

GAVIO GROUP73,02%

3,63%

LAZARD ASSET MANAGEMENT LLC

2,59%

9

OWNERSHIP STRUCTUREMain motorway companies

AUTOCISA

PUBLIC AUTHORITIES

%GROUP

MUNICIP

ALITIE

S

OTHER

PROVINCE

SREGIO

NS

ANAS

OTHER

TOTAL

99,87

87

84

68

65

61

50

45

41

37

36

-

2

2

-

-

5

-

-

-

11

-

-

4

9

-

-

6

-

-

18

9

-

-

-

-

28

-

-

-

-

-

-

64

-

-

-

-

35

-

-

-

-

32

-

-

1

-

-

-

6

-

-

-

-

-

100

100

100

100

100

100

100

100

100

100

100

0,13

6

5

4

-

22

50

55

41

11

-

SUBSIDIARIES

Società Autostrada Asti-Cuneo S.p.A.

LxL

E.M.

E.M.

PROP.

A.p.Cile(VS, LC, NO)

10

SAVONASAVONA

VENTIMIGLIA

M. BIANCO

IVREAIVREA

TORINOTORINO

VOLTRIVOLTRI SESTRI L.SESTRI L.

PARMAPARMA

LA SPEZIAVIAREGGIO

PISA LUCCALUCCA

LIVORNO

ASASTITI

CUNEOCUNEO

AOSTAAOSTA

S. BERNARDO

ALESSANDRIAALESSANDRIA

MILANOMILANO

FREJUSPIACENZAPIACENZA

ROSIGNANO M.

CONCESSIONAIRE LENGHT KM

SUBSIDIARIESSATAP [A4] 130,3SATAP [A21] 167,7SALT 154,9CISA 182,0(1)

SAV 59,5AT-CN 90 (2)

ADF 113,2ATIVA 155,8

EQUITY INVESTMENTSSITAF [A32, T4] 94SITRASB 12,8

ROAD LINK (A69) – UK 84COSTANERA NORTE – CHILE (THROUGH ASA) 43VESPUCIO SUR / LITORAL CENTRAL / NORORIENTE – CHILE (THROUGH A.p.Cile) 125

1.412,2

SIGNIFICANT INVESTMENTSMILANO SERRAVALLE – MILANO TANGENZIALISOCIETA’ AUTOSTRADA TIRRENICA

Current network managed by the SIAS Group

Inclusive of the planned 81 km stretch linking Parma to the Autostrada del BrenneroUnder construction

(1)(2)

11

SIAS Group: Italian motorway concessions

(1) Concession schemes signed on September 2, 2009 (to date, the effectiveness of the concessions are subject to the authorisation procedure of the Law no. 286/06)(2) On October 2, 2009 the EU infringement procedure upon the extension of the concession to 2031 was closed .(3) 23,5 years starting from the completion of the infrastructure

Status of the Concession/Financial Plan

Approved

ATIVA S.p.A. Torino ringroad, Torino-Quincinetto,

Ivrea-Santhià e Torino-Pinerolo 2016

Concession expiry

SATAP S.p.A. Torino-Milano 2026

SATAP S.p.A. Torino-Piacenza 2017

CISA S.p.A. La Spezia-Parma (and junction to

the Brennero motorway) 2031

ASTI-CUNEO

ADF S.p.A. Savona-Ventimiglia 2021

SALT S.p.A. Sestri Levante-Livorno, Viareggio-Lucca e

Fornola-La Spezia 2019

(3)

SAV S.p.A. Quincinetto-Aosta 2032

(2)

12

(1)

(1)

(1)

1. GROUP STRUCTURE




5. CONCLUSION

13

ASTM – 9 MONTHS 09 EBITDA BY SECTOR

95% MOTORWAY SECTOR

CONSTRUCTION SECTOR

1% TECHNOLOGICAL SECTOR2%

ENGINEERING SECTOR 2%

9 Months 09EBITDA 366,7EBITDA margin 57%

14

ASTM – NET FINANCIAL INDEBTEDNESS(Eu mn)

Long-term indebtedness84,3%

Short-term indebtedness

15,7%

30/9/2009

Cash and cash equivalents

Long-term indebtedness

Including the NPV OF THE “CENTRAL GUARANTEE FUND” DEBTIncluding the NPV OF THE “CENTRAL GUARANTEE FUND” DEBT


NET FINANCIAL INDEBTEDNESSNET FINANCIAL INDEBTEDNESS NET FINANCIAL INDEBTEDNESSNET FINANCIAL INDEBTEDNESS

Financial receivables

(1.670)

324

50

(263)

(1.416)

30/9/2009

(1.305)

221

30

(294)

(1.338)

(1.741)

30/6/2009

(1.381)

15

SIAS 9 MONTHS 09 EBITDA BY SECTOR

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

CONSTRUCTION SECTOR 97% MOTORWAY

SECTOR

AUTOCISA

2%TECHNOLOGICAL

SECTOR

1%

(1)

A4 Stretch

A21 Stretch

9 Months 09EBITDA 360EBITDA margin 57%

19,6%

14,7%

24,7%

16,1%

5,8%

5,1%

11,0%

16

SIAS – NET FINANCIAL INDEBTEDNESS(Eu mn)

Long-term indebtedness85,1%


14,9%

30/9/2009

Cash and cash equivalents

Long-term indebtedness

IIncluding the NPV OF THE “CENTRAL GUARANTEE FUND” DEBTIIncluding the NPV OF THE “CENTRAL GUARANTEE FUND” DEBT

300

50

(265)

(1.508)

(1.788)


NET FINANCIAL INDEBTEDNESSNET FINANCIAL INDEBTEDNESS NET FINANCIAL INDEBTEDNESSNET FINANCIAL INDEBTEDNESS

Financial receivables

30/9/2009

(1.423)

201

30

(295)

(1.429)

(1.854)

30/6/2009

(1.493)

17

SIAS – DEBT ANALYSIS BY MATURITY

2015-onward70,0%

2011- 201420,4%

20109,6%

. Debt at fixed rate/hedged : 80% of consolidated debt (approx. 3.8%)

. Debt at floating rate : 20% of consolidated debt (Euribor +35b.p.115b.p.)

18

AVERAGE MATURITY: 7 YEARS

SIAS - BOND

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

INTEREST: 2,625%

CONVERSION RIGHT:

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° 9,8 millions (31%)

19

1. GROUP STRUCTURE




5. CONCLUSION

20

SIAS GROUP – TARIFF INCREASES (2009)

(1) Refers to “Productivity factor”

Inflation

(a)

Quality factor

(b)

Total

(a)+(b)=(c)

Past due increase

(d)

X factor2008(e)

X factor2009

(f)

K factor2009(g)

TOTAL TARIFF INCREASE(c)+(d)+(e)+(f)+(g)

SATAP A4 1,50 0,19 1,69 - 3,98 3,98 9,81 19,46

SATAP A21 1,50 0,16 1,66 - 2,92 2,92 5,13 12,63

ATIVA 1,50 -0,96 0,54 1,00 - - 5,03 6,57

CISA 1,50 0,11 1,61 - - - - 1,61

ASTI-CUNEO - - - 9,30 - - - 9,30

(1)

A) CONCESSION AGREEMENTS RENEGOTIATED IN PREVIOUS YEARS

(%)

21

SIAS GROUP – TARIFF INCREASES (2009) cont’d

(1) Concession schemes have been signed on September 2, 2009 (to date, the effectiveness of the concessions are subject to the authorisation procedure of the Law no. 286/06)

(2) Based on 1/5 – 31/12/2009 period (+7,35%: full year)

Inflation

(a)

Productivity factor

(b)

Quality factor

(c)

Past due increase

(d)

TOTAL TARIFF INCREASE

(a)+(b)+(c)+(d)

ADF 1,50 0,96 0,31 0,98 1,83

SALT 1,50 0,96 0,55 3,46 4,55

SAV 1,50 0,96 0,21 2,15 2,90

(1)

(2)

(%)

B) CONCESSION AGREEMENTS RECENTLY RENEGOTIATED

2009 Group average tariff increase : +4,75%

(1)

22

SIAS GROUP – TARIFF INCREASES – KEY COMPONENTS (2010 – ONWARD)

2010 2011 2012 2013 2014 2015 2016

SATAP A4 X factorK factor

3,989,8113,79

3,989,8113,79

3,989,8113,79

-13,7913,79

-13,7913,79

SATAP A21 X factorK factor

2,925,138,05

2,925,138,05

2,925,138,05

-8,058,05

-8,058,05

ATIVA K factor 5,18 5,18 5,18 5,18

CISA K factor 1,57 10,00 10,00 10,00 10,00 10,00 3,46

(%)

A) CONCESSION AGREEMENTS RENEGOTIATED IN PREVIOUS YEARS

23

(1) Tariff increases to be reviewed upon approval of the “executive project”

(1)

SIAS GROUP – TARIFF INCREASES – KEY COMPONENTS (2010 – ONWARD) cont’d

2010 2011 2012 2013 2014

SALT K factor - 4.26 4.26 4.26 4.26

ADF K factor -

3.86 3.86 3.86 3.86

SAV X factorK factor

8.05 -

8,05

8.052.2510.30

8.052.2510.30

8.052.2510.30

8.052.2510.30

B) CONCESSION AGREEMENTS RECENTLY RENEGOTIATED

(%)

(1)

Until the expiry of the concession agreements, has been agreed a “price cap” formula linking the minimum annual rate of toll increased to 70% of the “actual” inflation rate

(1) Concession schemes have been signed on September 2, 2009 (to date, the effectiveness of the concessions are subject to the authorisation procedure of the Law no. 286/06)

24

SIAS GROUP - INVESTMENT PLAN

(Eu bn) 2009 2010 2011 2012 2013 2014 2015 2016

2017-end of concession Total

SATAP A4 0,05 0,19 0,27 0,15 0,04 0,70

SATAP A21 0,04 0,04 0,04 0,02 0,02 0,16

SAV 0,01 0,01 0,01 0,02 0,05

ATIVA 0,03 0,02 0,04 0,03 0,01 0,13

SALT 0,03 0,03 0,06 0,09 0,09 0,05 0,05 0,40

ADF 0,01 0,03 0,04 0,03 0,02 0,13

AT - CN 0,04 0,10 0,10 0,20 0,22 0,10 0,76

Total 0,21 0,42 0,56 0,54 0,40 0,15 0,05 -- -- 2,33

(1)

(1)

(1)

EIB and Cassa Depositi e Prestiti granted 1.0 bn long term loans for financing the above investment programme

(2) (3)

(1) Concession schemes have been signed on September 2, 2009;(2) Net of Government grants by € 0.2 bn. (3) Additional 0,5 bn investments are currently under discussion with ANAS; the financial plan and the final amount of the investment will be reviewed upon

approval of the “executive project”.(4) The financial plan and the final amount of the investment will be reviewed upon approval of the “executive project”; negotiation currently in progress with the Regulator. 25

CISA 0,12 0,28 0,28 0,27 0,33 0,33 0,30 0,08 0,01 2,00

(4)

1. GROUP STRUCTURE




5. CONCLUSION

26

INTERNATIONAL DEVELOPMENT: CHILE

JOINT ACQUISITION WITH ATLANTIA

IN SANTIAGO AREA ACHIEVED CRITICAL MASS

PARTNERSHIP/CO-INVESTMENTS TO MINIMIZE BUSINESS RISK

BUSINESS CONSOLIDATION OPPORTUNITIES

ACQUISITION OF 3 CHILEAN MOTORWAYS HAS BEEN COMPLETED ON JUNE 30, 2009

27

Transaction Highlights

Synergies in the Santiago area leveraging on the existing operating platform

Rationale

SIAS has contibuted assets of Santiago area in a new vehicle equally controlled with Atlantia indicatively financed with 50% equity/50% debt

Equity contribution: SIAS (approx. € 68 mil., inclusive of a share premium by € 41mil.) and Atlantia (approx. € 27 mil)

SIAS and Atlantia already hold a 45% interest each in Autostrade Sud America (ASA), which controls Costanera Norte, a 43 Km toll road in Santiago

The new vehicle will merge with ASA

I

II

III

IV

VRMVI

VII

VIII

IX

X

XI

XII

PuchuncaviNogales Los Andes

Colina

Santiago

Melipilla

San Antonio

Algarrobo

ValparaisoViña del Mar

V

VII

Santiago

VI

Area V

RM

Metropolitan Area of

Santiago


28


(1) Opened to traffic beginning of March 2009(2) 24.2x EV/EBITDA for Costanera Norte (EV/EBITDA multiple implied in the acquisition of the call option held by Impregilo Group on 10% of the share

capital of Costanera Norte’s parent company, Autopista do Pacifico)(3) Inclusive of transaction costs(4) 45% stake held by SIAS and 45% stake held by Atlantia

Joint vehicle

SIAS / Atlantia

Vespucio Sur 50% 25 201 8.0x

Red Vial Litoral Central 50% 4 62 15.5.x 262

Nororiente 100% n.a.(1) 125 n.m. (1)

Assets in Santiago contributed in APC (a new vehicle equally controlled by SIAS and Atlantia) Combined EV/EBITDA 22.4x

New vehicle to merge with Costanera (2)

AssetStake

EBITDA2008

Net debt2008

Net debt/EBITDA

Equity value pre-leverage Remarks

(3)

29

Costanera Norte 90%(4) 38 330 8.7x Costanera Norte 90%(4) 38 330 8.7x


Vespucio Sur

Red Vial Litoral Central

Nororiente• Minimum guaranteed income

• Committed Governement subsidies

Remarks

24

80

21

2002-2032

2001-2031

2009-2044

100% CPI + 3.5%

100% CPI

100% CPI + 3.5%

KmConcession

start-end


• Possible 8 year concession extension (1)

• Congestion pricing (2)

• Minimum guaranteed income


Tariff formula

(1) Alternative to the reimbursement by the Ministry of Public Works at the end of the concession (with matured interests) of the extra cost incurred during construction

(2) Tariffs may double when average speed is below 70 km/hour and may triple when average speed is below 50 km/hour

30

1. GROUP STRUCTURE




5. CONCLUSION

31

OPERATIONS

DIVIDEND POLICY

INTERNATIONAL & DOMESTIC DEVELOPMENT

REGULATION

FINANCIAL

STRATEGY

TRAFFIC RELATIVELY RESILIENT TO ECONOMIC SLOWDOWN

TARIFF INCREASES LINKED TO THE SIGNIFICANT ONGOING INVESTMENT PLAN (AND TO 70% OF THE “ACTUAL” INFLATION RATE FOR THE RECENTLY RENEGOTIATED CONCESSION AGREEMENTS)

FINALLY, THE “NEW” CONCESSION AGREEMENTS FULLY DISPLAYED THE EFFECTS [e.g. TARIFF INCREASES]

NO LONGER COMPULSORY TO TENDER OUT WORKS UP TO 60% OF TOTAL VALUE (ART. 29 OF LAW DECREE NO. 207/2008)

FOCUS ON FEW SELECTED OPPORTUNITIES WITH LIMITED EQUITY COMMITMENT

INVOLVEMENT OF OTHER PARTNERS IN ACQUISITIONS OF NON MATURE OR HIGHLY LEVERED ASSETS

BID FOR GREEN FIELD INITIATIVES (i.e. PEDEMONTANA PIEMONTESE)

STABLE PAY-OUT DESPITE INVESTMENTS’ PEAK

LARGE SAFETY MARGIN IN TERM OF RE-FINANCING

ACCESS TO LONG-TERM SOURCES OF FUNDING [e.g. EIB and CDP]

CONCLUSION

32

Disclaimer

THIS DOCUMENT HAS BEEN PREPARED BY ASTM S.P.A. AND SIAS S.P.A. (THE “COMPANIES”) FOR THE SOLE PURPOSE DESCRIBED HEREIN. IN NO CASE MAY IT BE INTERPRETED AS AN OFFER OR INVITATION TO SELL OR PURCHASE ANY SECURITY ISSUED BY THE COMPANY OR ITS SUBSIDIARIES.

THE CONTENT OF THIS DOCUMENT HAS A MERELY INFORMATIVE AND PROVISIONAL NATURE AND THE STATEMENTS CONTAINED HEREIN HAVE NOT BEEN INDEPENDENTLY VERIFIED. NEITHER THE COMPANIES NOR ANY OF ITS REPRESENTATIVES SHALL ACCEPT ANY LIABILITY WHATSOEVER (WHETHER IN NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY FROM THE USE OF THIS DOCUMENT. THIS DOCUMENT MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON.

THE INFORMATION CONTAINED HEREIN AND OTHER MATERIAL DISCUSSED AT THE PRESENTATION MAY INCLUDE FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE COMPANIES’ BELIEFS AND EXPECTATIONS. THESE STATEMENTS ARE BASED ON CURRENT PLANS, ESTIMATES AND PROJECTIONS, AND PROJECTS. HOWEVER, FORWARD-LOOKING STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES. WE CAUTION YOU THAT A NUMBER OF FACTORS COULD CAUSE THE COMPANIES’ ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT. THEREFORE, YOU SHOUD NOT PLACE UNDUE RELIANCE ON SUCH FORWARD-LOOKING STATEMENTS.

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GAVIO GROUP NOVEMBER 2009. KEY FACTS (1)- Traffic volumes:+ 1 mil - Asti-Cuneo stretch:+ 1 mil -...

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