GAVIO GROUP AUTOSTRADA TORINO MILANO GROUP SOCIETA INIZIATIVE AUTOSTRADALI E SERVIZI GROUP

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1 GAVIO GROUP AUTOSTRADA TORINO MILANO GROUP SOCIETA INIZIATIVE AUTOSTRADALI E SERVIZI GROUP October 2005

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 GROUP STRUCTURE 30,81% 100% 56% 87,39% 96,17% 84,36% 11,98% 99,87% 67,63% 95% 100% STRADE AUTOCISA 60,77% 5,56% 85,92% 36,98% 41,17% 20,0% 36,5% 70% ABC ABC Costruzioni Costruzioni 4

5 OWNERSHIP STRUCTURE Holding companies 0,11% TREASURY STOCKS 3,24% MORGAN STANLEY & Co. Int. Ltd 2,56% BANQUE SYZ & S.A. 2,78% ASSICURAZIONI GENERALI 4,00% FONDAZIONE CRTO 3,56% MORGAN STANLEY & GROUP Co. Int. Ltd 4,95% ASSICURAZIONI GENERALI GROUP 40,09% FREE FLOAT 37,08% FREE FLOAT 50,62% GAVIO GROUP 51,01% GAVIO GROUP 5

6 OWNERSHIP STRUCTURE Main motorway companies AUTOCISA % PUBLIC AUTHORITIES GROUP MUNICIPALITIES OTHER PROVINCES REGIONS ANAS OTHER TOTAL 6 99, , SUBSIDIARIES

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

8 NETWORK MANAGED M. BIANCO FREJUS S. BERNARDO AOSTA ASTI IVREA TORINO MILANO ALESSANDRIA PIACENZA PARMA SATAP TorinoMilano stretch TorinoPiacenza stretch ATIVA SAV SITAF Km. 127,0 167,7 152,7 59,5 94,0 CUNEO VENTIMIGLIA VOLTRI SESTRI L. SAVONA LA SPEZIA VIAREGGIO PISA LIVORNO LUCCA TOTAL 600,9 ROSIGNANO M. SUBSIDIARIES Autostrada TorinoAlessandriaPiacenza S.p.A Autostrade Valdostane S.p.A. Autostrada TorinoIvreaValle d Aosta S.p.A. EQUITY INVESTMENTS 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 NETWORK MANAGED S. BERNARDO M. BIANCO FREJUS CUNEO VENTIMIGLIA AOSTA ASTI IVREA TORINO MILANO ALESSANDRIA VOLTRI SESTRI L. PIACENZA SAVONA LA SPEZIA VIAREGGIO PISA LIVORNO PARMA ROSIGNANO M. LUCCA SALT 154,9 ADF 113,2 CISA 182,0 ASTICUNEO 90,0 TOTAL (a) 540,1 SATAP TorinoMilano stretch TorinoPiacenza stretch ATIVA SAV SITAF Km. 127,0 167,7 152,7 59,5 94,0 TOTAL (b) 600,9 (1) TOTAL (a) + (b) SUBSIDIARIES Autostrada TorinoAlessandriaPiacenza S.p.A Autostrade Valdostane S.p.A. Autostrada TorinoIvreaValle d Aosta S.p.A. Autostrada dei Fiori S.p.A. Autostrada Ligure Toscana S.p.A. Autocamionale della Cisa S.p.A. EQUITY INVESTMENTS 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. Società Autostrada Tirrenica S.p.A. (1) inclusive of 81 km stretch linking Parma to the Autostrada del Brennero (under construction) 9

10 GROUP MOTORWAY CONCESSIONS ASTM Group Subsidiaries SATAP (A 4 stretch) SATAP (A 21 stretch) ATIVA SAV SITAF SITRASB ROAD LINK HOLDING Ltd. (UK) Concession expiry (1) (1) Terminal value on new investments granted by the incoming concessionaire upon expiry of the concession: 150 Eu mn 10

11 GROUP MOTORWAY CONCESSIONS SIAS Group Subsidiaries SALT ADF CISA ASTI CUNEO stretch Concession expiry (1) (1) (2) (1) Terminal value on new investments granted by the incoming concessionaire upon expiry of the concession: SALT (290 Eu mn), CISA (195 Eu mn) (2) Subject to extension in connection with the construction of the Parma Autostrada del Brennero stretch 11

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

13 ASTM 6 MONTHS RESULTS (IAS/IFRS) (Eu mn) 30/6/ /6/2004 REVENUES OPERATING COSTS EBITDA EBITDA margin AMORTISATION & DEPRECIATION EBIT 201 (105) 96 48% (17) (115) 92 44% (15) 77 FINANCIAL RESULT, NET EXTRAORDINARY INCOME (EXPENSE) INCOME TAXES MINORITY INTERESTS NET INCOME OPERATING CASH FLOW NET FINANCIAL INDEBTEDNESS 29 (28) (2) 78 2 (26) (1.5) (1) (2) (1) Loans guaranteed by the Government: 58 Eu mn (2) Net financial indebtedness as at 31 December

14 ASTM 1H05 EBITDA BY SECTOR MOTORWAY SECTOR 85% 35% A4 STRETCH 30% A21 STRETCH 10% 11% (1) 6% ENGINEERING & PLANNING SECTOR 8% MAINTENANCE & CONSTRUCTION SECTOR (1) ATIVA is consolidated on a proportionate basis (41%) 14

15 ASTM NET FINANCIAL INDEBTEDNESS & LEVERAGE (1) , , ,63 0,68 0,68 0,54 0, ,4 0 31/12/2002 Pro forma 31/12/ /12/ /06/ NET FINANCIAL INDEBTEDNESS (Eu mn) DEBT / EQUITY (1) Loans guaranteed by the Government: 58 Eu mn 15

16 ASTM FINANCIAL RESULTS / 2003 (Eu mn) Pro Pro Forma Forma CAGR ,4 % +10,9 % +16,4 % +16,2 % +17,3 % +14,7 % +1,0 % +28,7 % TOLL TOLL REVENUES REVENUES EBITDA EBITDA OPERATING OPERATING CASH CASH FLOW FLOW NET NET RESULT RESULT 16

17 SIAS 6 MONTHS RESULTS (IAS/IFRS) (Eu mn) REVENUES OPERATING COSTS EBITDA EBITDA margin AMORTISATION & DEPRECIATION EBIT FINANCIAL RESULT, NET EXTRAORDINARY INCOME (EXPENSE) INCOME TAXES MINORITY INTERESTS NET INCOME OPERATING CASH FLOW NET FINANCIAL INDEBTEDNESS 30/6/ /6/ (50) (9) (30) (13) 192 (92) (79) % 58% (35) (8) (28) (12) (1) (2) (1) Loans guaranteed by the Government: 56 Eu mn (2) Net financial indebtdness as at 31 December

18 SIAS 1H05 EBITDA BY SECTOR MOTORWAY SECTOR 95,1% 44,5% 33,2% AUTOCISA 17,4% 2,5% TECHNOLOGICAL SECTOR 2,1% 17% NO RECURRENT REVENUES MAINTENANCE & CONSTRUCTION SECTOR 18

19 SIAS NET FINANCIAL INDEBTEDNESS & LEVERAGE (1) , , ,66 0,20 0,37 0,46 0,8 0,4 0 31/12/ /12/ /12/ /6/ NET FINANCIAL INDEBTEDNESS (Eu mn) DEBT / EQUITY (1) Loans guaranteed by the Government 56 Eu mn 19

20 SIAS FINANCIAL RESULTS / 2003 (Eu mn) CAGR ,3 % +15,0 % +16,0 % +21,0 % +12,0 % +26,0 % +17,0 % +40,0 % Pro Pro Forma Forma TOLL TOLL REVENUES REVENUES EBITDA EBITDA OPERATING OPERATING CASH CASH FLOW FLOW NET NET RESULT RESULT 20

21 GROUP STRUCTURE FINANCIAL RESULTS REGULATION GROWTH STRATEGY & VALUE DRIVERS CONCLUSION 21

22 ASTM GROUP ANNUAL TARIFF CHANGE (1) (%) FORECASTED INFLATION RATE 2005 Actual 1, ,70 Set annually in the Government s budget SAV INVESTMENTS (2) 1,43 1,43 1,43 NEW INVESTMENTS Under negotiation with ANAS PRODUCTIVITY 0,89 0,90 0,92 0,94 0,96 QUALITY FACTOR 0,30 0,33 Set annually on the basis of quality level achieved ANNUAL TARIFF CHANGE 2,44 2,56 (1) Calculated as a weighted average on 1H05 toll revenues (2) X factor was granted to SAV to cover both the previous and new investiments 22

23 SIAS GROUP ANNUAL TARIFF CHANGE (1) (%) 2005 Actual FORECASTED INFLATION RATE 1,60 1,70 Set annually in the Government s budget NEW INVESTMENTS Under negotiation with ANAS PRODUCTIVITY 0,89 0,90 0,92 0,94 0,96 QUALITY FACTOR 0,65 0,78 Set annually on the basis of quality level achieved ANNUAL TARIFF CHANGE 1,36 1,58 (1) Calculated as a weighted average on 1H05 toll revenues 23

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

25 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 km (1) strengthened the Group network in the highly industrialised north of Italy bidden successfully for new concessions abroad (i.e. CostaneraChile) (1) inclusive of the 90 km. AstiCuneo stretch 25

26 STRATEGY: WHAT WE FORESEE MOTORWAY SECTOR CONCLUDE THE RENEGOTIATION OF THE NEW FINANCIAL PLANS WITH ANAS, BOTH DEFINING ADDITIONAL INVESTMENTS (i.e. 3 RD lane for SALT, safety lane and 4 th lane for TOMI, ) AND RELATED X FACTORS CARRY OUT THE PARMA BRENNERO MOTORWAY PROJECT REDUCE MINORITIES THROUGH ACQUISITIONS (MAINLY FROM LOCAL PUBLIC AUTHORITIES) 26

27 STRATEGY: WHAT WE FORESEE OTHER SECTORS DEVELOP ENGINEERING & PLANNING ACTIVITIES (i.e. "HIGH SPEED TRAIN" PROJECT) WIDEN TELECOM SERVICES (BY USING THE approx KM FIBREOPTIC MODERN BACKBONE AND TRANSMITTERS FOR MOBILE TELEPHONE OPERATORS) 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) 27

28 VALUE DRIVERS: TRAFFIC GROWTH TRAFFIC TREND HISTORICALLY OUTPERFORMED GDP GROWTH EVEN IN RECESSION YEARS 4.5% 3.5% 2.5% 1.5% 0.5% 0.5% 1.5% GDP GDP TOTAL TOTAL TRAFFIC TRAFFIC ON ON MOTORWAYS MOTORWAYS 28

29 VALUE DRIVERS: AUTOMATED TOLL PAYMENT SYSTEMS CURRENT SITUATION ENVISAGED SITUATION ( within 5 yrs ) VIACARDS & TELEPASS 56% CASH 33% CASH 1520% 8% CREDIT CARDS 3% FAST PAY AUTOMATED TOLL PAYMENTS 65% 8085% AUTOMATED TOLL PAYMENTS 29

30 VALUE DRIVERS: SUB CONCESSION AGREEMENTS (Eu mn) EBITDA increases without additional costs 19,5 4,0 27,0 6,0 14,8 3, (forecast) ROYALTIES FROM PETROL STATIONS & RESTAURANTS OTHER ROYALTIES (TELECOMS, ADVERTISING, ) 30

31 GROUP STRUCTURE FINANCIAL RESULTS REGULATION GROWTH STRATEGY & VALUE DRIVERS CONCLUSION 31

32 CONCLUSION Conservative financial profile and balanced growth strategy Long term view of the business, dedicated management Value creation through lasting, experienced motorway knowhow and operating efficiency New Group Structure Substainable profitability growth rates No competition from other transportation systems 32

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