1 / 38

Gavio Group: Structure, Financial Results, Regulation, Growth Strategy & Value Drivers

This report provides an overview of the Gavio Group's structure, financial results, regulation, growth strategy, and value drivers. It covers the ownership structure, subsidiaries, significant investments, motorway concessions, and financial performance.

peggyjones
Download Presentation

Gavio Group: Structure, Financial Results, Regulation, Growth Strategy & Value Drivers

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. GAVIO GROUP AUTOSTRADA TORINO – MILANO GROUPSOCIETA’ INIZIATIVE AUTOSTRADALI E SERVIZI GROUP April 2006

  2. AGENDA GROUP STRUCTURE FINANCIAL RESULTS REGULATION GROWTH STRATEGY & VALUE DRIVERS CONCLUSION 2

  3. GROUP STRUCTURE FINANCIAL RESULTS REGULATION GROWTH STRATEGY & VALUE DRIVERS CONCLUSION 3

  4. AUTOCISA GROUP STRUCTURE 34,59% 100% 56% 99,87% 87,39% 67,63% 95% 96,17% 12,59% 36,5% 60,77% 5,56% 65% 85,92% 36,98% 41,17% Società Autostrada Asti-Cuneo S.p.A. ABC Costruzioni 84,36% 20,0% 70% 45% Autostrade SUD AMERICA s.r.l. 4

  5. OWNERSHIP STRUCTUREHolding companies TREASURY STOCKS 0,11% 2,13% ADELPHI CAPITAL LLP 2,01% SCHRODER INVESTMENT MGMT LTD. 5,53% ASSICURAZIONI GENERALI GROUP 4,00% FONDAZIONE CR-TO ASSICURAZIONI GENERALI GROUP 4,95% 39,3% FREE FLOAT FREE FLOAT 38,07% 50,86% GAVIO GROUP 53,04% GAVIO GROUP 5

  6. 99,87 68 41 37 36 87 61 84 12 0,13 4 41 11 - 6 22 5 - - - - 11 - 2 5 2 21 - - 18 9 - 4 6 9 61 - 28 - - 64 - - - - - - - 32 - - - - - - - - - - 1 6 - 6 100 100 100 100 100 100 100 100 100 AUTOCISA OWNERSHIP STRUCTUREMain motorway companies PUBLIC AUTHORITIES % MUNICIPALITIES PROVINCES REGIONS GROUP OTHER ANAS OTHER TOTAL SUBSIDIARIES 6

  7. S. BERNARDO AOSTA M. BIANCO IVREA MILANO FREJUS PIACENZA TORINO PARMA ASTI ALESSANDRIA VOLTRI SESTRI L. CUNEO SAVONA LA SPEZIA VIAREGGIO VENTIMIGLIA PISA LUCCA LIVORNO ROSIGNANO M. NETWORK MANAGED Km. SALT ADF CISA ASTI-CUNEO 154,9 113,2 182,0 90,0 (1) (2) 540,1 TOTAL SIGNIFICANT INVESTMENTS SUBSIDIARIES Milano 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. (1) (2) Inclusive of 81 km stretch linking Parma to the Autostrada del Brennero (under construction) Under construction 7

  8. S. BERNARDO AOSTA M. BIANCO IVREA MILANO FREJUS PIACENZA TORINO PARMA ASTI ALESSANDRIA VOLTRI SESTRI L. CUNEO SAVONA LA SPEZIA VIAREGGIO VENTIMIGLIA PISA LUCCA LIVORNO ROSIGNANO M. NETWORK MANAGED Km. SATAP - Torino-Milano stretch - Torino-Piacenza stretch ATIVA SAV SITAF 127,0 167,7 163,7 59,5 94,0 611,9 TOTAL 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

  9. MILANO FREJUS PIACENZA ROSIGNANO M. NETWORK MANAGED S. BERNARDO SALT ADF CISA ASTI-CUNEO 154,9 113,2 182,0 90,0 AOSTA M. BIANCO IVREA (1) (2) TORINO TOTAL (a) 540,1 PARMA ASTI ALESSANDRIA Km. VOLTRI SESTRI L. SATAP - Torino-Milano stretch - Torino-Piacenza stretch ATIVA SAV SITAF 127,0 167,7 163,7 59,5 94,0 CUNEO SAVONA LA SPEZIA VIAREGGIO VENTIMIGLIA PISA LUCCA LIVORNO 611,9 TOTAL (b) 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. Società Italiana Traforo Autostradale del Frejus p. A. Società Italiana Traforo del Gr.S.Bernardo S.p.A. Road Link (A69) Holding Ltd (UK) Autostrada dei Fiori S.p.A. Autostrada Ligure Toscana S.p.A. Autocamionale della Cisa S.p.A. SIGNIFICANT INVESTMENTS Milano Serravalle – Milano Tangenziali S.p.A. Società Autostrada Tirrenica S.p.A. (1) (2) Inclusive of 81 km stretch linking Parma to the Autostrada del Brennero (under construction) Under construction 9

  10. ASTM Group Subsidiaries Concession expiry SATAP (A 4 stretch) SATAP (A 21 stretch) ATIVA SAV SITAF SITRASB ROAD LINK HOLDING Ltd. (UK) 2026 2017 2016 2032 2050 2034 2026 GROUP MOTORWAY CONCESSIONS 10

  11. GROUP MOTORWAY CONCESSIONS SIAS Group Subsidiaries Concession expiry SALT ADF CISA ASTI CUNEO stretch 2019 2021 2010 2032 (1) (1)The BoD of ANAS ,on 20 February 2006 , approved an extension to 2044 11

  12. GROUP STRUCTURE FINANCIAL RESULTS REGULATION GROWTH STRATEGY & VALUE DRIVERS CONCLUSION 12

  13. ASTM 2005 & 2004 RESULTS - (IAS/IFRS) ( Eu mn ) 31/12/2005 31/12/2004 REVENUES 411 441 OPERATING COSTS (208) (250) 203 191 203 EBITDA 191 EBITDA EBITDA margin 49% 43% EBITDA margin 49% 43% AMORTISATION & DEPRECIATION (37) (38) 153 153 EBIT 166 EBIT 166 158 FINANCIAL RESULT, NET 3 EXTRAORDINARY INCOME (EXPENSE) INCOME TAXES (66) (52) (4) MINORITY INTERESTS (4) NET INCOME 254 100 254 100 NET INCOME 291 291 111 OPERATING CASH - FLOW 111 OPERATING CASH - FLOW (1) NET FINANCIAL INDEBTEDNESS 411 NET FINANCIAL INDEBTEDNESS 489 411 489 (1) Loans guaranteed by the Government: 49 Eu mn 13

  14. MOTORWAY SECTOR 84% 9% 7% ENGINEERING & PLANNING SECTOR MAINTENANCE & CONSTRUCTIONSECTOR ASTM - 2005 EBITDA BY SECTOR 29% A21 STRETCH 11% 9% (1) 35% A4 STRETCH (1) ATIVA is consolidated on a “proportionate basis” (41%) 14

  15. 450 (1) 418 400 350 300 250 200 150 100 50 0 DEBT / EQUITY NET FINANCIAL INDEBTEDNESS (Eu mn) ASTM - NET FINANCIAL INDEBTEDNESS & LEVERAGE 2 410 372 1,6 321 1,2 0,8 0,68 0,63 0,68 0,57 0,4 0 31/12/2003 31/12/2004 31/12/2005 31/12/2002Pro forma (1) Loans guaranteed by the Government: 58 Eu mn 15

  16. CAGR+ 67,3% CAGR+ 4,3% CAGR+ 13% ASTM - FINANCIAL RESULTS(3 YEARS PERIOD) (Eu mn) Toll Revenues 273 267 251 2004 2003 2005 203 E.B.I.T.D.A 191 159 2004 2005 2003 Operating Cash - Flow 291 111 104 2004 2003 2005 16

  17. CAGR+ 60% CAGR+ 30,8% ASTM GROUP RESULTS (CONT’D) (Eu mn) Net ProfitGroup 254 100 99 2004 2003 2005 53 DividendsPaid 35 31 2003 2005 2004 17

  18. SIAS 2005 & 2004 RESULTS - (IAS/IFRS) ( Eu mn ) 31/12/2005 31/12/2005 31/12/2004 31/12/2004 REVENUES 453 413 (166) OPERATING COSTS (173) 280 247 280 247 EBITDA EBITDA 62% EBITDA margin 62% EBITDA margin 60% 60% (102) AMORTISATION & DEPRECIATION (70) 177 178 177 178 EBIT EBIT (17) FINANCIAL RESULT, NET 53 EXTRAORDINARY INCOME (EXPENSE) (63) INCOME TAXES (63) (35) MINORITY INTERESTS (28) NET INCOME 133 NET INCOME 69 69 133 229 149 229 149 OPERATING CASH - FLOW OPERATING CASH - FLOW (1) 287 337 NET FINANCIAL INDEBTEDNESS 287 NET FINANCIAL INDEBTEDNESS 337 (1) Loans guaranteed by the Government: 56 Eu mn 18

  19. MOTORWAY SECTOR 84% AUTOCISA SIAS - 2005 EBITDA BY SECTOR 29% TECHNOLOGICAL SECTOR 3% 17,5% 38% 4% MAINTENANCE & CONSTRUCTIONSECTOR 8,5% NO RECURRING REVENUES 19

  20. 2 1,6 1,2 0,8 0,4 0 31/12/2002 31/12/2003 31/12/2004 31/12/2005 NET FINANCIAL INDEBTEDNESS (Eu mn) DEBT / EQUITY SIAS - NET FINANCIAL INDEBTEDNESS & LEVERAGE 400 337 (1) 300 287 230 200 129 0,37 100 0,37 0,66 0,20 0 (1) Loans guaranteed by the Government 56 Eu mn 20

  21. SIAS - BOND ISSUE SIZE: 335 Eu millions 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

  22. CAGR+ 21,9% CAGR+ 3,7% CAGR+ 16,9% SIAS - FINANCIAL RESULTS(3 YEARS PERIOD) (Eu mn) Toll Revenues 345 338 321 2004 2003 2005 279 E.B.I.T.D.A 247 204 2004 2005 2003 Operating Cash - Flow 229 154 149 2004 2003 2005 22

  23. CAGR+ 51,4% CAGR+ 73,2% SIAS - GROUP RESULTS (CONT’D) (Eu mn) 133 Net ProfitGroup 69 58 2004 2003 2005 51 DividendsPaid 33 17 2003 2005 2004 23

  24. GROUP STRUCTURE FINANCIAL RESULTS REGULATION GROWTH STRATEGY & VALUE DRIVERS CONCLUSION 24

  25. (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 ASTM GROUP - ANNUAL TARIFF CHANGE (1) 2006 2005 (%) FORECASTED INFLATION RATE FORECASTED INFLATION RATE 1,70 1,60 SAV INVESTMENTS(2) 1,43 1,43 NEW INVESTMENTS - - (3) -0,90 -0,89 PRODUCTIVITY QUALITY FACTOR 0,33 0,30 2,44 ANNUAL TARIFFCHANGE 2,56 25

  26. (1) Calculated as a weighted average on 2005 “toll revenues” (2) X factor related to the “new investments” would apply from January 1,2007 SIAS GROUP - ANNUAL TARIFF CHANGE (1) 2006 2005 (%) FORECASTED INFLATION RATE 1,70 1,60 NEW INVESTMENTS - - (2) -0,89 -0,90 PRODUCTIVITY QUALITY FACTOR 0,65 0,78 1,58 1,36 ANNUAL TARIFFCHANGE 26

  27. ASTM GROUP - INVESTMENT PLAN Status of the Plan Investments Plan (1) Terminal value (2) To be approved by ANAS Approved by ANAS (Eu mn) 635 259 SATAP: A4 Stretch A21 Stretch 894 350 a a 194 218 ATIVA - 50 a SAV (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

  28. SIAS GROUP - INVESTMENT PLAN Status of the Plan Investments Plan (1) Terminal value (2) To be approved by ANAS Approved by ANAS (Eu mn) SALT 480 290 a ADF - 190 a 800 a 2.000 CISA - a 800 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

  29. GROUP STRUCTURE FINANCIAL RESULTS REGULATION GROWTH STRATEGY & VALUE DRIVERS CONCLUSION 29

  30. POSITIVE TRACK RECORD OF MANAGEMENT IN IMPLEMENTING ITS STRATEGY STRATEGY: WHAT WE HAVE DONE 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

  31. CONCLUDE THE RENEGOTIATION OF THE “NEW” FINANCIAL PLANS CARRY OUT THE “PARMA – BRENNERO MOTORWAY” PROJECT & “ASTI-CUNEO” REDUCE MINORITIES THROUGH ACQUISITIONS(MAINLY FROM LOCAL PUBLIC AUTHORITIES) STRATEGY: WHAT WE FORESEE MOTORWAY SECTOR 31

  32. 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) STRATEGY: WHAT WE FORESEE OTHER SECTORS INCREASE CONSTRUCTION ACTIVITIES - THROUGH SUBSIDIAIRIES - TO COPE WITH THE MOTORWAYS' INVESTMENT PLAN ...WITHOUT FORGETTING POTENTIAL FROM DIVERSIFICATION IN OTHER "SIDE" BUSINESS AREAS (i.e. LOGISTICS, HARBOURS) 32

  33. 4.5% 3.5% 2.5% 1.5% 0.5% -0.5% -1.5% GDP TOTAL TRAFFIC ON MOTORWAYS VALUE DRIVERS: TRAFFIC GROWTH TRAFFIC TREND HISTORICALLY OUTPERFORMED GDP GROWTH EVEN IN RECESSION YEARS 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 33

  34. ENVISAGED SITUATION( within 4 yrs ) CURRENT SITUATION VIACARDS & TELEPASS CASH 60% CASH 15-20% 30% 2% 8% 80-85% FAST PAY CREDIT CARDS AUTOMATED TOLLPAYMENTS AUTOMATED TOLL PAYMENTS 70% VALUE DRIVERS: AUTOMATED TOLL PAYMENT SYSTEMS 34

  35. 7,0 33,0 2006(forecast) 4,0 19,5 2004 VALUE DRIVERS: SUB - CONCESSION AGREEMENTS (Eu mn) EBITDAincreases withoutadditional costs 6,0 29,0 2005 ROYALTIES FROM PETROL STATIONS & RESTAURANTS OTHER ROYALTIES (TELECOMS, ADVERTISING, … ) 35

  36. GROUP STRUCTURE FINANCIAL RESULTS REGULATION GROWTH STRATEGY & VALUE DRIVERS CONCLUSION 36

  37. CONCLUSION Long term viewof the business,dedicatedmanagement Value creation through lasting, experienced motorway know-how and operating efficiency Conservative financial profile and balancedgrowth strategy (also abroad) No competition from other transportation systems New Group Structure Substainableprofitabilitygrowth rates 37

  38. www.autostradatomi.it www.grupposias.it 38

More Related