Primo Convegno Annuale Osservatorio Partnership Pubblico Privato MP3

Transcription

1 Primo Convegno Annuale Osservatorio Partnership Pubblico Privato MP3 Giovanni Gorno Tempini CEO Milan, 18 November 2013

2 Overview 2 CDP s activities for: Local authorities 10 Infrastructure 17 Supporting economy 23 Business Plan

3 Mission Overview A joint stock company under public control, stake owned by a broad group of private banking Foundations MISSION: SUPPORTING ITALY S GROWTH 63 PRIVATE FOUNDATIONS 80.1% 18.4% (1.5% treasury shares) Leader in financing Local authorities and PA Catalyst in developing the country's infrastructure Key player in supporting economic development 3

4 CDP evolution Overview 4

5 Today: CDP Group Overview 5

6 CDP: New resources Overview NEW RESOURCES over 50.0 bln, > 3.0% of GDP up to 90.0 bln, about 6.0% of GDP Key figures 2012 (vs 2011) Assets> 300 bln (+12%) Cash: 139 bln (+8%) Loans> 100 bln (+2%) Postal funding> 233 bln (+7%) Shareholder s equity: 16.8 bln (+16%) Net income: > 2.8 bln (+77%) 6

7 2012 Other key Figures Overview LIABILITIES About 10% of national household savings. Stock over 230 bln. Net funding around 10 bln SME LOANS 18 bln in 2 years for about 60,000 SMEs EXPORT FINANCE 6-bln to support companies exports and international expansion AQUISITIONS 30% SNAM, 100% SACE, 100% FINTECNA, 76% SIMEST 7

8 Main equity investments and funds Overview LISTED COMPANIES (CDP SHARE; BOOK VALUE) ENI Spa (25.76%; 15.3 bln) PRIVATE EQUITY (CDP COMMITMENT) FSI Fondo Strategico Italiano ( 4 bln) Terna Spa (29.9%; 1.3 bln) FII - Fondo Italiano d Investimento ( 250 mln) Snam Spa via CDP RETI (30%; 3.5 bln) UNLISTED COMPANIES (CDP SHARE) TAG - via CDP GAS (89%) FINTECNA (100%) SACE (100%) FINCANTIERI (99.4%) F2i Fondo Italiano per le Infrastrutture ( 251 mln) Marguerite Fund ( 100 mln) InfraMed Fund ( 150 mln) Fondo Investimenti per l Abitare ( 1 bln) Fondo Investimenti per la Valorizzazione ( 250 mln) SIMEST (76%) European Energy Efficiency Fund ( 60 mln) Corporate Infrastructure Other 8

9 Lines of business Overview Lending Equity Public Authorities Infrastructure Lending Corporate financing Project financing FIA Fondo Investimenti per l abitare FIV Fondo Investimenti per la Valorizzazione F2i Fondo italiano per le infrastrutture Marguerite Fund Inframed Fund Economic Development SME Plafond Export Bank Kyoto Fund Funds worth 12 bln for earthquake reconstruction FSI Fondo Strategico Italiano FII Fondo Italiano d Investimento EEEF European Energy Efficiency Fund 9

11 CDP for Local Authorities Local Authorities LOANS CDP finances investments of PA, in particular for local authorities for small and middle size infrastructure. CDP finances about 10,000 projects a year in these sectors. In 2012 CDP financing will total about 3.3 bln ( 6.2 bln in 2011) ASSET VALUATION CDP supports local authorities in the process of valuation enhancement of: real estate assets participation in local utilities in order to enhance asset value SOCIAL HOUSING CDP supports government and local-authority housing policies, with the aim of increasing the supply of social housing for leasing at favorable prices and sales at agreed upon prices. 11

12 Local Authorities CDP is leader in financing public investments by means of special purpose loans. The activity is a service of "general economic interest, and takes place within a framework which ensures maximum transparency, accessibility and consistency for all participants. Main sectors are: transport infrastructure public and social housing hospital and university construction sports and recreational facilities energy water sector CDP loans: a growing activity Central & local government loans, ( bn stock) Between 2006 and 2012, total market funding has declined from 173 to 169 bn CDP loans, ( bn stock) At the same time CDP increased its loans, and its market share from 31% to 45% Source: Banca d Italia, 2013 Source: CDP,

13 Leveraging real estate for public entities Local Authorities PROVIDE PUBLIC ENTITIES WITH ALTERNATIVE INSTRUMENTS TO BETTER MANAGE THEIR REAL ESTATE PORTFOLIO CDP has allocated 1 bln to the project to be progressively deployed via the underwriting stakes of the funds managed by CDPI Sgr Through its real estate division, CDP provides consulting and coaching to public entities for the enhancement, rationalization, income development and/or sale of their real estate assets. The first fund, Fondo Investimenti per la Valorizzazione Plus (FIV Plus), is operative and managed by CDP Investimenti SGR (CDPI) 13

14 Enhancement of local utilities Local Authorities Assessment is an opportunity for local authorities to raise investment funds UTILITIES IN ITALY High degree of fragmentation: with almost 400 companies generating more than 30 million of turnover Many local operators: fragmented shareholder structures (including public-private partnerships); complex governance, inadequate size, lack of financial resources. (In France 3 companies control 100% of water market and GDF hold over 80% of gas market; in the UK 99% of gas retail market is controlled by 6 operators). To promote geographical aggregation of small- tomedium-sized operators and the creation of national champions for sector To foster investment growth required to improve service efficiency and infrastructure development To strengthen a strategic sector for the country's economic development 14

15 Social Housing: Fondo Investimenti per l Abitare Local Authorities CDP, by means of Fondo Investimenti per l Abitare, managed by CDPI Sgr, operates in social private housing, supports government and local-authority housing policies, with the aim of increasing supply of social housing for leasing at regulated prices and sales at agreed upon prices Sponsors: CDP, MIT, banks, insurance companies, pension funds Fund raising: started in July 2010 and closed in March 2012 Total resources : 2.03 bln (CDP: 1 bln) Sectors: initiatives in the social housing sector through local real estate funds APPROVED INVESTMENTS: 363 mln PIPELINE: Over 30 investment funds (60% Northern Italy, 40% Center-South) An overall investment of 3 bln. 15

17 CDP for Infrastructure Development Infrastructure FINANCING CDP, through PPPs and medium/long-term loans, provides direct financing to medium and large-scale infrastructure projects and investments in public services. In 2012 CDP financed projects for over 2.8 bln EQUITY FUNDS CDP supports the development of infrastructure projects through participation in national and international equity funds. NATIONAL GRID SHAREHOLDINGS CDP is the shareholder of reference of national energy network companies, SNAM and Terna. 17

18 Infrastructure CDP in 2012 financed infrastructure works in numerous sectors with a marked focus on the natural gas, multi utilities and highway sectors Corporate Finance Finance solutions for companies operating in the public service sector, and for public-sector companies. 18 Project Finance Direct finance of infrastructure projects Autostrade Spa A4 third lane Passante di Mestre A1 third lane Bre.Be.Mi Autovie Venete Frejus tunnel Florence tram Rome and Milan subway lines 18

19 CDP Infrastructure Financing in 2012 Infrastructure Focus on highway 19

20 Equity National Funds: F2i Infrastructure Mutual closed-end investment fund mainly focused on brownfield infrastructure. Sectors: gas and energy transport airports renewable energy highways and transport water service media and telecommunications Strategy: investments in network infrastructure creation of national champions consolidated operators In less than 4 years F2i deployed more than 1.75 bln, investing in eight companies within key infrastructure sectors. October 2012 marked the launching of the second Fund (with an initial worth of 610 mln) in order to follow the investment strategy, growth process, and consolidation of individual sectors. 20

21 International Funds: Marguerite and Inframed Infrastructure MARGUERITE Sponsors: EIB, CDP, CDC, KfW, ICO and PKO First closing: March 2010 Total resources: 710 mln ( 100 mln from CDP) Sectors: transport, energy and renewable energy (EU 27 countries) Sponsors: EIB, CDP, CDC, CDG and EFG Hermes First closing: May 2010 INFRAMED Total resources: 385 mln ( 150 mln from CDP) Sectors: urban infrastructure, energy, transport and logistics (South-east Mediterranean) Fund raising and investment phases in progress Fund raising and investment phases in progress FIRST INVESTMENTS: 3 Off Shore Wind, Belgium Germany 2 Solar PV projects, France Transport TenT, Spain 2 onshore wind farm, Poland 1 onshore wind farm, Romania PIPELINE: Over 125 investment opportunities screened 26 detailed assessment in progress 14 preliminary investment proposals FIRST INVESTMENTS: Port of Iskenderun, Turkey Egypt refining company, Egypt Wind farm, Jordan PIPELINE: Morocco: renewable energy Egypt: highways, energy, wastewater Turkey: hospitals, transport, energy 21

23 Supporting the economy Supporting economy LENDING CDP, through banking system: provides liquidity, including long-term funds, to SMEs helps SMEs cope with delays in payment of their receivables due from government entities supports the international development and export of Italian companies provides support for investments in research EQUITY CDP supports the growth of domestic companies, SMEs and strategic companies, including the stake in their capital 23

24 SMEs: the Plafond Supporting economy Since 2009 CDP has provided 18 bln for SMEs FIRST PLAFOND: 8 BLN interest rates at the lower range of the market wide maturity range: 3,5,7 and 10 years 53,000 SMEs received financing 16% of the companies funding between 2009 and 2012 average amount of 150,000 > 40% of resources > 5 yrs redemption North-West 38%; North-East 30%; Central 16%; South 16% Manufacturing 42%, trade-transporthotels 27%, construction 10% Participating banks: 76% of the total banking network, nearly 92% as of market share SECOND PLAFOND: 10 BLN 8 for debt and working capital 2 for payment delays from PA interest rates at the lower range of the market wide maturity range: 3,5,7 and 10 years (15 years for earthquake zones) In a few months: 7,000 companies 60,000 COMPANIES HAVE RECEIVED FUNDING THROUGH CDP 24

25 Export finance Supporting economy Resources available 6 bln DIRECT INDIRECT BANKS COMPANIES SACE guarantee COMPANIES Amount of deals closed: over 3.3 bln Pipeline: 28 projects; over 11.0 bln The acquisition of SACE and Simest will strengthen the support of CDP Group making it the reference hub for export financing 25

26 Subsidised credit instruments Supporting economy CDP supports the economy also managing subsidised credit instruments established by specific legislation. Subsided loans primarily draw on CDP resources with state interest subsidies, while also taking advantage, to a residual extent, of central government funding in the form of capital grants and subsidised loans. FRI Revolving Fund to support enterprises and research investment: 6 bln to support enterprises and investment in research ( 2 billion to promote regionally investment in production and research) Kyoto Fund is a revolving fund totalling around 600 million, financed by the Ministry for the Environment and managed by CDP, to fund greenhouse gas reduction measures in implementation of the Kyoto Protocol. Earthquakes funds: economic support measures already in place include the funds ( 14 bln) available to assist in the reconstruction of the areas hit by earthquakes (Abruzzo in 2009 and parts of Emilia-Romagna, Veneto and Lombardy in 2012). Fund to reduce the stock of commercial debt of PA, the Italian Government has put under CDP management a section dedicated to Local Authorities of the fund established at the Ministry of Economy and Finance. The Fund gives liquidity anticipations to those authorities with lack of available resources. Grants: 3,6 bln in favour of over 1,500 Local Authorities 26

27 FII: Equity Fund for SMEs Supporting economy Investors: CDP, IntesaSanpaolo, Unicredit, MPS, Banche Popolari Sponsor: MEF, ABI and Confindustria First closing: October 2010 Total resources: 1.2 bln ( 250 mln subscribed by CDP) Sectors: Italian SMEs. Potentially interested firms: 15,000 SMEs (10,000 in the manufacturing sector) Fund raising: in progress INVESTMENTS > 50 companies and funds; over 650 mln 27

28 Strategic Companies: FSI Target: Acquisition of equity holdings (normally minority stakes) in companies of significant national interest, to support growth, improve operational efficiency and international competitiveness significant national interest Supporting economy SECTORS alternatively SIZE Defense; Security; Infrastructure; public services; Communications; Energy; Insurance and financial services; Research and high technology Annual turnover > 300 mln Average staffing > 250 employees KEY REQUIREMENTS OF TARGET COMPANIES FINANCIALLY AND ECONOMICALLY STABLE ADEQUATE EXPECTED PROFITS SIGNIFICANT GROWTH PROSPECT In 2012 Bank of Italy acquired minority equity stake in FSI and will remain a stable minority shareholder 28

29 FSI: First Investments Supporting economy Approved investments totaling around 800 mln TLC: 200 mln (46.2%) with an option for additional 300 mln investment aimed at implementing the broadband network in the country Healthcare research : 75 mln (18.7%) + convertible line of credit for 75 mln is becoming the fifth largest operator in the world in the plasma-derivate industry Multiutility: up to 100 mln (2-6%) investment represents first concrete step for creation of a multiutility hub 29

30 Joint-Venture FSI and Qatar Holding Joint-venture agreement with Qatar Holding, created to invest in Made in Italy Made in Italy Company) Supporting economy sectors (IQ Starting with a 300 mln capital, the NewCo total capital will reach up to 2 bln, to be equally paid by FSI and QH during the first 4 years Investment target: Italian companies operating in sectors representing "Made in Italy excellence Members contribution to the partnership FSI Qatar Holding Local market expertise Institutional profile and retail access to the market Pipeline expertise Medium Long Term investment horizon Global coverage Knowledge of industrial sectors part of the agreement Familiarity with Italy: (i) 6 Italian members of the team; (ii) investment track record in Italy (iii) current pipeline Medium Long Term investment horizon 30

31 Strategic Companies: Fincantieri Supporting economy 100% 99,4% 55,6% CDP controls 99,4% of leading Italian shipbuilder Fincantieri through its subsidiary Fintecna Fincantieri has completed in 2013 the acquisition of 55,6% of STX OSV, subsequently renamed Vard KEY FIGURES OF TARGET COMPANIES Fincantieri World leader in the cruise ships market Sole supplier of the Italian Navy One of the major mid-sized vessel suppliers of US Navy and US Coast Guard Vard World leader in the construction of offshore support vessels for oil and gas extraction and production Shipyards: Italy 8, US 3 Employees: 10,240 (of which 2,100 in US) Net worth 2012: 957m Order intake 2012: 1,400m Backlog 2012: 4,700m Sales 2012: 2,385m EBITDA 2012: 137m Shipyards: Norway 5, Romania 2, Brazil 2, Vietnam 1 Employees: 9,530 Net worth 2012: 442m Order intake 2012: 1,300m Backlog 2012: 2,068m Sales 2012: 1,525m EBITDA 2012: 202m 31

33 CDP Group business plan Business Plan CDP Group business plan perimeter CDP Companies subject to CDP s direction and coordination : CDP SPVs ¹ CDPI SGR SACE Fintecna FSI Simest Plan of components Business Plan «in continuity» + Potential additional initiatives Description Business Plan as per current legislation (status quo) Further development of core business areas within the Group Enhancement and coordination of competences within the Group Potential initiatives subject to further legislation to be introduced (expected activation in the short term exploiting existing competences within the Group) 1 CDP Reti and CDP Gas 33

34 Billion Public Entities Strategy Strategic priorities and resources Business Plan Strengthening financing and advisory activities for Public Entities subject to budget constraints and the Stability Pact Innovative solutions for the enhancement of equity and real estate investments Strengthening the investments in social housing projects, even in disadvantaged areas also leveraging structural funds Enhancing the role of SACE FCT to support programs of debt payments of PA Total lending and managed resources Infrastructure Promoting the bankability of infrastructure projects (large-scale national projects as well as smaller-scale local initiatives) 7-9 Enterprises Export/ internationalization Further development of export credit and guarantee to promote the internationalization of Italian companies and the improvement of their operating model Development in continuity of quasi-equity international activities Domestic Supporting private investments (with a counter-cyclical function) through credit funded by postal savings Full deployment of subsidized-credit instruments managed on behalf of the State Equity investments in strategically relevant sectors/companies based on a non-speculative, dynamic management Equity equal to ~ 6 billion of euros Not including non-recurring transactions, equal to 0.9 bn in ; not including lending by SACE BT which uses short-term loans not directly comparable to the rest of the Group 34