April 2006 AUTOSTRADA TORINO – MILANO GROUP SOCIETA INIZIATIVE AUTOSTRADALI E SERVIZI GROUP GAVIO...

April 2006April 2006

AUTOSTRADA TORINO – MILANO GROUPSOCIETA’ INIZIATIVE AUTOSTRADALI E SERVIZI GROUPAUTOSTRADA TORINO – MILANO GROUPSOCIETA’ INIZIATIVE AUTOSTRADALI E SERVIZI GROUP

GAVIO GROUPGAVIO GROUP

2

AGENDA

REGULATION

GROUP STRUCTURE

FINANCIAL RESULTS

GROWTH STRATEGY & VALUE DRIVERS

CONCLUSION

3

REGULATION

GROUP STRUCTURE

FINANCIAL RESULTS


CONCLUSION

34,59%

AUTOCISA

84,36%

5,56%60,77%

85,92%

56% 87,39%

96,17%

GROUP STRUCTURE

4

36,98% 41,17%

99,87% 67,63%

20,0% 70%

36,5%95%

100%

12,59%

ABC CostruzioniABC Costruzioni Società Autostrada Asti-Cuneo S.p.A.

65%

Autostrade

SUD AMERICA s.r.l.

45%

OWNERSHIP STRUCTUREHolding companies

5

ASSICURAZIONI GENERALI GROUP

5,53%

FREE FLOAT39,3%

GAVIO GROUP53,04%

ADELPHI CAPITAL LLP2,13%TREASURY STOCKS

SCHRODER INVESTMENT MGMT LTD.

ASSICURAZIONI GENERALI GROUP

FREE FLOAT

GAVIO GROUP50,86%

38,07%

4,95%

2,01%

0,11%

4,00% FONDAZIONE CR-TO

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

12

-

-

-

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

0,13

4

41

11

-

6

22

5

-

SUBSIDIARIES

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

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

90,090,0

SALTSALTADFADFCISACISAASTI-CUNEOASTI-CUNEO

TOTAL 540,1

(1)(2)

Inclusive of 81 km stretch linking Parma to the Autostrada del Brennero (under construction)Under construction

Autostrada dei Fiori S.p.A.Autostrada Ligure Toscana S.p.A.Autocamionale della Cisa S.p.A.

SUBSIDIARIES SIGNIFICANT INVESTMENTSMilano Serravalle – Milano Tangenziali S.p.A.Società Autostrada Tirrenica S.p.A.

7

(1)(1)

NETWORK MANAGED

(2)(2)

8

SAVONASAVONA

VENTIMIGLIA

M. BIANCOIVREAIVREA

TORINOTORINO


PARMAPARMA

LA SPEZIAVIAREGGIO


ASTIASTI

CUNEOCUNEO

AOSTAAOSTA

S. BERNARDO

MILANOMILANO


ROSIGNANO M.


Km.Km.

127,0127,0167,7167,7163,7163,7

59,559,594,094,0

SATAPSATAP - Torino-Milano stretch- Torino-Milano stretch - Torino-Piacenza stretch- Torino-Piacenza stretchATIVAATIVASAVSAVSITAFSITAF

TOTAL 611,9

Società Italiana Traforo Autostradale del Frejus p. A.Società Italiana Traforo del Gr.S.Bernardo S.p.A.Road Link (A69) Holding Ltd (UK)

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.

NETWORK MANAGED

SAVONASAVONA

VENTIMIGLIA

M. BIANCOIVREAIVREA

TORINOTORINO


PARMAPARMA

LA SPEZIAVIAREGGIO


ASTIASTI

CUNEOCUNEO

AOSTAAOSTA

S. BERNARDO

MILANOMILANO


ROSIGNANO M.


TOTAL (a) + (b)TOTAL (a) + (b) 1.1521.152

(1)(2)

Inclusive of 81 km stretch linking Parma to the Autostrada del Brennero (under construction)Under construction

Società Italiana Traforo Autostradale del Frejus p. A.Società Italiana Traforo del Gr.S.Bernardo S.p.A.Road Link (A69) Holding Ltd (UK)

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.

127,0127,0167,7167,7163,7163,7

59,559,594,094,0

SATAPSATAP - Torino-Milano stretch- Torino-Milano stretch - Torino-Piacenza stretch- Torino-Piacenza stretchATIVAATIVASAVSAVSITAFSITAF

TOTAL (b) 611,9

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

90,090,0

SALTSALTADFADFCISACISAASTI-CUNEOASTI-CUNEO

TOTAL (a) 540,1

NETWORK MANAGED

(1)

(2)

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

ASTM Group SubsidiariesASTM Group Subsidiaries

GROUP MOTORWAY CONCESSIONS

11(1)The BoD of ANAS ,on 20 February 2006 , approved an extension to 2044

SALT

ADF

CISA

ASTI CUNEO stretch

Concession expiryConcession expiry

2019

2021

2010

2032

SIAS Group SubsidiariesSIAS Group Subsidiaries

(1)

12

REGULATION

GROUP STRUCTURE

FINANCIAL RESULTS


CONCLUSION

REVENUES

OPERATING COSTS

31/12/2005 31/12/2004

ASTM 2005 & 2004 RESULTS - (IAS/IFRS)

EBITDAEBITDA margin

EBITDAEBITDA margin

AMORTISATION & DEPRECIATION

EBITEBIT

FINANCIAL RESULT, NET

EXTRAORDINARY INCOME (EXPENSE)

INCOME TAXES

MINORITY INTERESTS

NET INCOMENET INCOME

411

(208)

(37)

158

(66)

(4)

441

(250)

(38)

3

(52)

(4)

20349%20349%

166166

254254

19143%191

43%

153153

100100

489489 411411

(Eu mn)

13

291291 111111NET FINANCIAL INDEBTEDNESSNET FINANCIAL INDEBTEDNESSOPERATING CASH - FLOWOPERATING CASH - FLOW

(1)

(1) Loans guaranteed by the Government: 49 Eu mn

14

ASTM - 2005 EBITDA BY SECTOR

9%9%7%7%ENGINEERING & PLANNING

SECTORMAINTENANCE & CONSTRUCTIONSECTOR

84%84%

MOTORWAY SECTOR

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

9%35%

29%

11%

(1)

A21 STRETCH

A4 STRETCH

321

372

410 418 (1)

0

0,4

0,8

1,2

1,6

2

15

ASTM - NET FINANCIAL INDEBTEDNESS & LEVERAGE

DEBT / EQUITYDEBT / EQUITYNET FINANCIAL INDEBTEDNESS (Eu mn)NET FINANCIAL INDEBTEDNESS (Eu mn)

31/12/2002Pro forma31/12/2002Pro forma

31/12/200331/12/2003 31/12/200431/12/2004 31/12/200531/12/2005


0

100

200

300

450

50

150

250

350

400

0,63 0,68 0,680,57

CAGR+ 4,3%CAGR+ 4,3%

CAGRCAGR+ 13%+ 13%CAGRCAGR+ 13%+ 13%

CAGR+ 67,3%CAGR

+ 67,3%

ASTM - FINANCIAL RESULTS (3 YEARS PERIOD)ASTM - FINANCIAL RESULTS (3 YEARS PERIOD)

TollRevenues

E.B.I.T.D.A

OperatingCash - Flow

2003 2004 2005

(Eu mn)

16

2003 2004 2005

2003 2004

2005

251267 273

159191

203

104 111291

CAGR+ 60%CAGR+ 60%

CAGR+ 30,8%CAGR+ 30,8%

Net ProfitGroup

DividendsPaid

ASTM GROUP RESULTS (CONT’D)

17

(Eu mn)

2003 2004 2005

2003 2004 2005

99100

254

31 3553

REVENUES

OPERATING COSTS

31/12/200531/12/2005 31/12/200431/12/2004

SIAS 2005 & 2004 RESULTS - (IAS/IFRS)

EBITDAEBITDA margin

EBITDAEBITDA margin

AMORTISATION & DEPRECIATION

EBITEBIT

FINANCIAL RESULT, NET

EXTRAORDINARY INCOME (EXPENSE)

INCOME TAXES

MINORITY INTERESTS

NET INCOMENET INCOME

453

(173)

(102)

53

(63)

(35)

413

(166)

(70)

(17)

(63)

(28)

280280

178

133

60%

177

69

337 287


(Eu mn)

18

229 149

NET FINANCIAL INDEBTEDNESSNET FINANCIAL INDEBTEDNESSOPERATING CASH - FLOWOPERATING CASH - FLOW

(1)

280280 24724724724762% 60%62%

178 177

133 69

229 149

337 287

19

8,5%8,5%NO RECURRING REVENUES

MAINTENANCE & CONSTRUCTIONSECTOR

84%84%

MOTORWAY SECTOR

SIAS - 2005 EBITDA BY SECTOR

AUTOCISA

17,5%

38%

29%

4%4%

3%3%TECHNOLOGICAL

SECTOR

NET FINANCIAL INDEBTEDNESS (Eu mn)NET FINANCIAL INDEBTEDNESS (Eu mn) DEBT / EQUITYDEBT / EQUITY

0

0,4

0,8

1,2

1,6

2

20

SIAS - NET FINANCIAL INDEBTEDNESS & LEVERAGE

0

100

200

300

(1) Loans guaranteed by the Government 56 Eu mn

31/12/200231/12/2002 31/12/200531/12/200531/12/200431/12/200431/12/200331/12/2003

129

287

230

337 (1)

0,660,37

0,200,37

400

ISSUE SIZE: 335 Eu millions

SIAS - BOND

INTEREST: 2,625%

CONVERSION RIGHT:

21

PAR VALUE: 10,50 Eu

DURATION: 12 yrs (2005 – 2017)

• FROM THE END OF THE 5TH YEAR

• 1:1 AT PAR

CAGR+ 3,7%CAGR+ 3,7%

CAGRCAGR+ 16,9%+ 16,9%CAGRCAGR+ 16,9%+ 16,9%

CAGR+ 21,9%CAGR

+ 21,9%

SIAS - FINANCIAL RESULTS (3 YEARS PERIOD)SIAS - FINANCIAL RESULTS (3 YEARS PERIOD)

TollRevenues

E.B.I.T.D.A

OperatingCash - Flow

2003 2004 2005

(Eu mn)

22

2003 2004 2005

2003 2004

2005

321 338 345

204247

279

154 149229

CAGR+ 51,4%CAGR+ 51,4%

CAGR+ 73,2%CAGR+ 73,2%

Net ProfitGroup

DividendsPaid

SIAS - GROUP RESULTS (CONT’D)

23

(Eu mn)

2003 2004 2005

2003 2004 2005

5869

133

1733

51

24

REGULATION

GROUP STRUCTURE

FINANCIAL RESULTS


CONCLUSION

25

ASTM GROUP - ANNUAL TARIFF CHANGE (1)

ANNUAL TARIFFCHANGEANNUAL TARIFFCHANGE 2,442,44

PRODUCTIVITY -0,89 -0,90

(1) Calculated as a weighted average on 2005 “toll revenues”(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(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

NEW INVESTMENTS

QUALITY FACTOR 0,30

2005

FORECASTED INFLATION RATE

2006

FORECASTED INFLATION RATE 1,60

(%)

SAV INVESTMENTS(2) 1,43 1,43

- - (3)

0,33

1,70

2,562,56

26

SIAS GROUP - ANNUAL TARIFF CHANGE (1)

ANNUAL TARIFFCHANGEANNUAL TARIFFCHANGE 1,361,36

PRODUCTIVITY -0,89 -0,90

(1) Calculated as a weighted average on 2005 “toll revenues”(2) X factor related to the “new investments” would apply from January 1,2007(1) Calculated as a weighted average on 2005 “toll revenues”(2) X factor related to the “new investments” would apply from January 1,2007

NEW INVESTMENTS

FORECASTED INFLATION RATE 1,60

2006(%)

QUALITY FACTOR 0,65 0,780,78

1,581,58

1,701,70

- (2)-

2005

27

ASTM GROUP - INVESTMENT PLAN

ATIVA 194 218

(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


SAV 50

Investments Plan (1)

Terminal value (2)

SATAP: A4 Stretch A21 Stretch

635259

(Eu mn)

894 350

-

Status of the Plan

Approvedby

ANAS

To be approved by ANAS

28

SIAS GROUP - INVESTMENT PLAN

CISA 2.000 800

ASTI-CUNEO 800

Investments Plan (1)

ADF

(Eu mn)

190 -

-

Status of the Plan

Approvedby

ANAS

To be approved by ANAS

290480SALT

Terminal value (2)



29

REGULATION

GROUP STRUCTURE

FINANCIAL RESULTS


CONCLUSION

STRATEGY: WHAT WE HAVE DONE

POSITIVE TRACK RECORD OF MANAGEMENT IN IMPLEMENTING ITS STRATEGY

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

STRATEGY: WHAT WE FORESEE

MOTORWAY SECTOR MOTORWAY SECTOR

31

CARRY OUT THE “PARMA – BRENNERO MOTORWAY” PROJECT & “ASTI-CUNEO”

CONCLUDE THE RENEGOTIATION OF THE “NEW” FINANCIAL PLANS

REDUCE MINORITIES THROUGH ACQUISITIONS(MAINLY FROM LOCAL PUBLIC AUTHORITIES)

STRATEGY: WHAT WE FORESEE

OTHER SECTORS OTHER SECTORS

32

DEVELOP ENGINEERING & PLANNING ACTIVITIES(i.e. "HIGH SPEED TRAIN" PROJECT)

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)

WIDEN TELECOM SERVICES (BY USING THE approx. 1000 KM FIBRE-OPTIC MODERN BACKBONE AND TRANSMITTERS FOR MOBILE TELEPHONE OPERATORS)

VALUE DRIVERS: TRAFFIC GROWTH

TOTAL TRAFFIC ON MOTORWAYSTOTAL TRAFFIC ON MOTORWAYS

33

2000200019941994 19951995 20012001 20022002 2003200319961996 19971997 19981998 19991999 2004 2004 -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

GDPGDP

20052005

VALUE DRIVERS: AUTOMATED TOLL PAYMENT SYSTEMS

34

CURRENT SITUATIONCURRENT SITUATION

8%8%

CREDIT CARDS

2%2%

FAST PAY

30%30%

CASH60%60%

AUTOMATED TOLL PAYMENTS

VIACARDS & TELEPASS

70%70%

ENVISAGED SITUATION( within 4 yrs )

ENVISAGED SITUATION( within 4 yrs )

15-20%15-20%

CASH

AUTOMATED TOLLPAYMENTS

80-85%80-85%

35

ROYALTIES FROM PETROL STATIONS & RESTAURANTS

OTHER ROYALTIES (TELECOMS, ADVERTISING, … )

VALUE DRIVERS: SUB - CONCESSION AGREEMENTS (Eu mn)

19,519,5

20042004

4,04,0

6,06,0

20052005

29,029,0

7,07,0

2006(forecast)

2006(forecast)

33,033,0

EBITDA

increases without

additional costsEBITDA

increases without

additional costs

36

REGULATION

GROUP STRUCTURE

FINANCIAL RESULTS


CONCLUSION

CONCLUSION

37

Long term viewof the business,

dedicatedmanagement

No competition from other transportation

systemsNew Group Structure

Substainableprofitabilitygrowth rates

Conservative financial profile and balanced

growth strategy (also abroad)

Value creation through lasting,

experienced motorway know-how

and operating efficiency

38

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April 2006 AUTOSTRADA TORINO – MILANO GROUP SOCIETA INIZIATIVE AUTOSTRADALI E SERVIZI GROUP GAVIO...

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