SAVE Group. Company Profile. UBS Investors Meeting Milano 14, July 2006

Transcription

1 SAVE Group Company Profile UBS Investors Meeting Milano 14, July

2 Table of contents Section 1 Section 2 Section 3 Section 4 Section 5 Group overview Airport Management (SBU1) Infrastructure Management (SBU2) Food & Beverage and Retail (SBU3) Financial Highlights 2

3 Section 1 Group overview 3

4 Group Overview A Company floated in the Italian Stock Exchange market with a capitalization* of 622,5 mln Mission MISSION Vision To be a leading service provider for travellers managing three different areas of business: airport management transport infrastructure management food & beverage and retail To manage the different Business Units in an innovative way, with high responsability and integrity, with the final aim at developing the territory which it serves; To manage all the three business units in an integrated way in order to anticipate the travellers needs as they pass through the infrastructures we manage. To become a mobility player offering high quality services. SAVE value chain focuses its attention on the passenger Traveller Mobility Value To increase the time value of travellers during their stay in airports and in the other mobility infrastructures Pleasant travel experience * As of Stock price of 30 June

5 Group Overview SAVE S Save s MAIN Main Strategies STRATEGIES Growth through To grow its position in the airport management sector To develop and extend its management activities in the transport infrastructure sector, utilising the know-how and skills learned in the airport sector To develop and extend its range of services, such as its food & beverage and retail management activities, into other sectors involving passenger and cargo transport Maximizing the potential of existing ventures Selective acquisition of other airport concessionaires Progressive acquisition of additional F&B and retail concession through tenders, direct negotiations or acquisition of competitors Acquisition of companies active in the transport infrastructure management 5

6 Group Overview SAVE IMPLEMENTS NEW STRATEGIES: SAVE exits ground handling activities in Venice; New air terminal as well as cargo warehouse are opened in Venice; SAVE acquires 40% stake in Centostazioni (103 midsize train stations throughout Italy); SAVE enters the food & beverage and retail segments through its controlled company Airport Elite All 103 railway stations are handed over the Centostazioni by the FS Group (State Railway); Annual system passengers go above the 6.6 mln mark closing at 6.7 mln pax IPO in the Milan Stock Exchange (SAVE.MI), trough an increase of capital for 160 mln SAVE Group acquires 100% of AIREST from Austrian Airlines. SAVE Group has signed and agreement for the acquisition of 100% of RISTOP. Save Group Development /mln* CAGR Consolidated Revenues 133,8 155,3 166,0 11,4% Airport Management 85,8 95,4 98,2 7,0% Infrastructure Management 18,2 21,5 24,8 16,8% F&B and Retail 34,5 44,0 49,0 19,2% /mln* CAGR Consolidated EBITDA 39,6 47,0 47,5 9,5% Airport Management 35,2 41,1 40,1 6,8% Infrastructure Management 1,7 2,3 2,9 31,9% F&B and Retail 2,7 3,6 4,4 27,4% * figures based on IAS/IFRS accounting standards. * figures based on IAS/IFRS accounting standards. 6

7 Group Overview SAVE Group is a provider of traveller services, primarily carried out under concession contracts, and it is organised into three main Business Units SAVE SpA Airport Operations Infrastructure Management Food & Beverage and Retail SBU*1 SBU*2 SBU*3 *SBU: Strategic Business Unit 7

8 Group Overview Financial overview million change % 200,0 150,0 100,0 50,0 0,0 Revenues Ebitda Ebit Net Profit Revenues 155,3 166,0 6,9% Ebitda 47,0 47,5 1,0% Ebit 18,4 24,3 32,0% Net Profit 4,9 11,0 123,4% Net Capital Employed 226,5 331,2 46,2% Net Financial Position 135,9 87,4-35,7% Equity 90,7 243,8 168,9% Revenue Breakdown per SBU 2005 Ebitda Breakdown per SBU 2005 F&B and Retail 28% Infrastructures Management 6% F&B and Retail 9% Airport Management 58% Infrastructures Management 14% Airport Management 85% 8

9 Group Overview A dynamic growth business and two related high-growth activities Airport Management (SBU1) Infrastructure Management (SBU2) 7.1 million passengers in 2005 (third airport system in Italy); 36 years of remaining concession period of the Venice Marco Polo Airport (until 2041); Concession of the Airport of Treviso until 2012; Applied for a 40-years concession extension. Present in airport car parking, airport security, engineering ecc. 103 railway station properties in exclusive management of commercial and real estate areas; 37 years of remaining concession period (until 2042); high returns after a short ramp up of commercial operation. Food & Beverage and Retail (SBU3) 43 shops in direct managing as of December 2005; Airports, Railway Stations are the main target for Food and Beverage and Retail services; Centostazioni 103 s station planned for a significant development; AIREST acquisition (22 february 2006) upgrades SAVE Group among the most important companies in F&B and Retail airport business. 9

10 Section 2 Airport Management SBU1 10

11 Airport Management Financial overview SBU change % million Revenues % Ebitda % Ebit % 120,0 100,0 80,0 60,0 40,0 20,0 0,0 Revenues Ebitda Ebit Revenues per Pax change % Aviation Revenues per pax % Non Aviation Rev. Per pax % Total SBU1 Revenues per pax % Non aviation revenues 35% Non aviation revenues 36% Aviation Revenues 65% Aviation Revenues 64% 11

12 Airport Management 2005 highlights Replacement of all routes served by Volare Airlines; Opening of an Alitalia base (+19,6% pax); Code sharing alliance between Alitalia and Alpi Eagles (+17% pax); Opening of a new route to Philadelphia; Looking forward Summer 06 will see inaugurals to Atlanta and Istanbul. key figures Aviation 10% pax growth ; 86 cities linked: 54 scheduled flights; 32 charter fligths; 187 total destinations; 57 countries linked; 9 aviation revenues per Pax ( 9.1 Y 2004) at Venice Airport; 30 ATM per hour runway authorized capacity at Venice Airport; Current capacity utilization: less than 60% of the total capacity in traffic peak. key figures Non Aviation 4.5 non aviation revenues per Pax ( 4.3 Y 2004) at Venice Airport; 5.7 average expenditure per pax on commercial activity in Venice ( 5.5 Y 2004); 5,265 current total parking spaces at Venice Airport; 1.44 revenues per Pax (Venice car parkings). 12

13 Airport Management The third Italian Airport System in 2005 with over 7,1 million passengers Passengers (1) (in mln) Aircraft Movements (1) (in thousand) 8,0 6,0 4,0 4,8 0,5 CAGR: + 14,5% 6,8 7,1 6,0 0,9 1,3 0,7 120,0 100,0 80,0 60,0 77,2 11,4 CAGR: + 7,7% 92,3 96,3 96,4 15,4 16,3 17,6 2,0 4,2 5,3 5,9 5,8 40,0 20,0 65,8 76,9 80,0 78,8 0, , Venice Treviso (1) Venice Airport System: Venice Airport+Treviso Airport 13

14 Airport Management Over 7,8 million passengers are expected in Passengers (1) (in mln) Aircraft Movements (1) (in thousand) Passengers Movements 2.00 Delta 1Q06 vs 1Q % Delta 1Q06 vs 1Q % Q05 1Q06 0 1Q05 1Q06 Venice Treviso (1) Venice Airport System: Venice Airport+Treviso Airport 14

15 Airport Management Passengers trend in 2005 have been near last year volumes. This is the result of Save s commercial ability to replace almost of Volare traffic with new airlines Passenger s trend (mln) 11/20 Volare Failure 6,0 5,5 5,0 4,5 9/11 twin towers events 18 months 13 months Despite Volare Airlines demise (20, nov 2004) passengers traffic in Venice Airport has been almost completely replaced with other carriers within the end of ,0 3,5 3,

16 Airport Management The Regulatory environment: at the moment, each Italian airport applies current tariffs, but a Contratto di Programma (a specific contract signed between each airport operator and the Civil Aviation Authority ENAC) should be applied Contratto di Programma Highlights New Decree of Requisiti di Sistema Highlights Contratto di Programma is a System of Price Regulation which determine airport tariffs for a fixed period; the system of Price Regulation is based on the price cap duall till approach ; This system is based on a negotiation between the Company (Airport Management) and Enac (Regulatory Authority). The negotiation involves: traffic forecasts; costs forecasts; Regulated Asset Base ( RAB ); WACC. With the Contratto di Programma pricing will become much more controlled. Recently a Legislative Decree has been approved introducing new rules (Decree on Requisiti di Sistema ), aiming at reorganizing and rationalizing the overall Italian airport system; the new decree introduces commercial activities at the airport in a partial single till approach. In particoular, the 50% of the non aviation margin is applied to reduce the amount of the aviation costs; other aspects of Requisiti di Sistema : Reduced concession fees paid by the airports to ENAC : the concession fee will be reduced by 75%, but this reduction will be compensated by an equivalent reduction in the tariffs charged to the airlines (neutral effect on the EBITDA); Removal of the night surcharge; The abolition of fuel royalties. Italian current aeronautical fees are amongst the lowest in Europe, possible upside potential 16

17 Airport Management Save primary aim is to increase the volume of traffic and consequently airport fees and turnover Actions Save s main strengths and opportunities Increasing point-to-point destinations available from Marco Polo Airport and Sant Angelo Airport and especially strenghtening links with Eastern Europe Increasing the number of flights between Venice and important international transport hubs Increasing the number of long-haul destinations Developing new routes within Italy, especially east-west and north-south routes Increasing the number of passengers by consolidating Marco Polo Airport s position as a geographic hub for servicing southern Italy Good growth track-record and significant organic growth prospects (with no environmental constraints) Strong catchment area and well diversified traffic (by airline, destination, reason for travel, etc) Demonstrated resilience to adverse events Low investment requirement in the medium term Investing in other airport management companies operating in Italy and abroad (in particular in Central and Eastern Europe and in Mediterranean countries) 17

18 Section 3 Infrastructure Management SBU2 18

19 Infrastructure Management Financial overview SBU2* change % million Revenues % 30,0 25,0 20,0 15,0 10,0 5,0 0,0-5,0 Revenues Ebitda Ebit Ebitda % Ebit % Infrastructure Management (SBU2) Revenues Breakdown 2005 Engineering 5% Other revenues 4% EBIT values reflect the goodwill generated by the acquisition of the Company. Sales 46% Facility Management 45% * Centostazioni s figures have been consolidated pro-rata to its 40 per cent shareholding in Archimede 1. 19

20 Infrastructure Management Centostazioni: Ownership Structure 60% Archimede 1 40% Others Public partner 60% 40% Private partner Operator 2005 key figures 15 stations refurbished (as of 31,dec 2005); Actually, works are in progress in 35 stations; 50,192 total sqm today operative (43,994 total sqm at the end of 2004); 105,000 total sqm expected; million total capital expending plan (of which 59.8 to be exploited by Centostazioni); 65.6 million the total exploited investment at present (of which 27 million exploited by Centostazioni). 20

21 Infrastructure Management high returns after a short ramp up of commercial operation Centostazioni: Business Model Profit & Loss Structure Revenues Costs Cost reimbursements, fees, professional tariffs Rentals contracts Sales Rentals, Fees, Royalties 40% Sales to RFI 40% of rentals Royalties and Rentals Commercial Partners and Other Partners Facility Management Engineering Cost reimboursement plus a 6% mark up 10% fee on investment managed Facility Costs Personnel Costs etc. Cost of Structure 21

22 Infrastructure Management Commercial Square Metres Revenues per Square metres % 50, % Revenues per sqm grew from Euro 170 in 2002 to Euro 190 in 2004 and Euro 215 in 2005 Revenues will increase thanks to: an increased appeal of the stations; maximisation of the use of available commercial areas. The first steps in the Value Creation Model: an Example on 9 refurbished railway stations Total 9 Stations* Before Refurbishment After Refurbishment Delta % Commercial Square metres ,1% N of shops ,0% Revenues ,0% Revenues per sqm ,9% * Brescia, Milano Lambrate, Roma Ostiense, Roma Trastevere, Treviso, Modena, Parma, Reggio Emilia, Udine. The growth of efficiency and profitability of a railway station after its refurbishment is underlined from the huge increase in: revenues revenues per sqm 22

23 Infrastructure Management The group s objective is to transform railway stations into viable and attractive commercial and social areas on the basis of projects developed with leading international architects Actions To include the management of other transport infrastructure such as motorways To purchase the interests of the other joint venture partners holding interests in Archimede 1 (which owns a 40% of the Centostazioni share capital) To purchase the interest of FS Holding (State Railway) in Centostazioni Save s main strengths and opportunities 40-year exclusive concession Premium price location in many Italian cities Low risk business with low investment requirement High returns after a short ramp up for commercial operations Opportunity to increase the stake in Centostazioni 23

24 Section 4 Food & Beverage and Retail SBU3 24

25 F&B and Retail Financial overview SBU change % million Revenues % 60,0 50,0 40,0 30,0 20,0 10,0 Ebitda % Ebit % 0,0 Revenues Ebitda Ebit F&B and Retail (SBU3) Revenues Breakdown 2005 Retail 54% F&B 46% A growing business that in 2006 has crossed the national borders 25

26 F&B and Retail Main Events 1H06 During the 1H06 SAVE Group has: Acquired 100% of AIREST from Austrian Airlines and Signed an agreement for the acquisition from Autostrada BS-PD Spa of 100% of RISTOP S.r.l.. Nationality: Austrian Year of foundation: 1973 Employees: 760 (860 included subsidiaries) Location: 7 Airports in Austria, Slovenia, Slovakia Outlets: 30 outlets fully managed (26 in Austria, 4 in Slovenia) Business Areas: - Airline Catering - Food & Beverage and Retail - Other business Turnover 2005: 70.8 million (75.9 included subsidiaries) EBITDA 2005: 4.2 million (4.9 million included subsidiaries) Nationality: Italian Year of foundation: 1987 Employees: 702 Location: 1 Airport, 1 Railway Station, Motorways, Shopping Malls Outlets: 41 fully managed (21 in the motorways, 5 in a airport, 1 in a railway station, 14 in shopping malls, business centres and entertainment centres) Business Areas: - Food & Beverage and Retail - Other business Turnover 2005: 72.7 million EBITDA 2005: 3.7 million 26

27 F&B and Retail Airest Acquisition 27

28 F&B and Retail Airest acquisition overview 7 April 2006: Save Group has acquired from Austrian Airlines the 100% of Airest equity stake Purchaser: Purchase price: AIRPORT ELITE S.R.L 25.7 million for 100% of Airest share 4.5 million is the amount granted from Airest to Austrian Airlines under the condition of extension of the Catering contract until the 2013 Acquisition leverage: 14 million, Austrian SPV bank loan 1.2 D/E ratio Austrian SPV Save Group is entitled to the profits for any fiscal year of Airest beginning from 1 january

29 F&B and Retail Acquisition through an Austrian SPV in order to obtain a goodwill depreciation on the purchase price for tax purposes in Austria Acquisition Structure SAVE 100% Airport Elite Capital Employed ( ) SBU3 Food & Beverage and Retail Austrian SPV 100% Price + transaction Costs Sources ( ) Bank Loan 26.5 mln 14 mln Airest Save Group Cotribution 12.5 mln D/E ratio

30 F&B and Retail F&B and Retail 80 Financial overview Airest CAGR million Revenues % EBITDA (11.0%) EBIT (19.0%) Net Profit (16.8%) 40 Net Capital Employed (18.4%) Net Financial Position (cash) (4.8) (5.6) (4.6) (2.1%) Equity (6.6%) 0 Revenues EBITDA EBIT Net Profit Revenues Breakdown 2005 Other Business 10% At signing, Airest and its subsidiaries cash available ( 5.3 million) has been distributed to the seller, thus reducing the Equity for the same value. Approximately 25.6 million (including transaction costs) is the goodwill of transaction (50% of which is tax depreciable in Austria). Terminal Catering 33% Airline Catering 57% 30

31 F&B and Retail Ristop Acquisition 31

32 F&B and Retail Ristop acquisition overwiew 9 May 2006: Save Group has signed an agreement for the acquisition of the 100% of Ristop equity stake Purchaser: Purchase price: AIRPORT ELITE S.R.L The agreement foresees - The acquisition of 50% of Ristop shares for an amount of 21 million - The remaining 50% of the shares will be acquired through a capital increase of Airport Elite reserved to the current shareholder of Ristop, Autostrada Brescia-Padova S.p.a - After the acquisition, Autostrada Brescia-Padova S.p.a. will be the onwer of the 13,5% of the Airport Elite shares Acquisition leverage: the 50% of Ristop shares will be financed through a bank loan ( 21 million) 32

33 F&B and Retail 80,0 Financial overview Ristop CAGR million Revenues % EBITDA (4.2%) EBIT (0.5%) Net Profit (2.7) nc 40,0 Net Capital Employed (0.2) nc Net Financial Position (cash) 0.2 (1.7) % Equity (0.4) nc 0,0 Revenues EBITDA EBIT Net Profit Revenue breakdown The total revenues of Ristop can be approximatively breakdown as follow: Motorways: 81% Downtown outlets: 13.5% Airports: 5.5% 33

34 F&B and Retail Outlets by channel Channels Airport Elite Airest Ristop Total SBU3 Airports Railway Stations Motorways Ports 3 3 Shopping Malls and business centres Total

35 F&B and Retail after the acquisition of AIREST and RISTOP Where we are Italy 6 Airports (Venezia, Treviso, Catania, Olbia, Bari, Verona); 6 Railway Stations (Termini, Rogoredo, Lambrate, Pescara, Cremona e Brescia); 1 Port (Genova); Motorways; Shopping Malls, business and entertainment centers (Milano, Verona, Brescia, Mantova, Padova, Ferrara). Austria 5 Airports (Vienna, Linz, Graz, Salisburgo, Klagenfurt) Slovakia 1 Airports (Bratislava) in Slovakia Save Group operates through Airest Slovensko. Airest Slovensko manages arline and business catering activities. Slovenia Italy Austria Slovenia - Slovacchia Remaining part of UE 1 Airport (Lubiana) 35

36 F&B and Retail after the acquisition of AIREST and RISTOP Pro-forma Aggregate SAVE SBU3 million 2005 * Revenues EBITDA EBIT 6.93 EBITDA margin % 6.4% * These figures Include other Revenues Airest will be consolidated in SAVE Group starting from 1 april 2006; Ristop will be consolidated in SAVE Group at the closing that will be after the definitive approval of the Antitrust Authority 36

37 F&B and Retail Save intends to increase its F&B activities by an intensification of its presence in actual and new mobility infrastructure Actions Opening new outlets in italian railway stations By tendering for food & beverage contracts in italian motorway service stations By sizing suitable opportunities to acquire small and medium sized companies operating in the food & beverage and retail sectors in transport facility Save s main strengths and opportunities Excellent track record in Venice airport Significant development opportunities at transport infrastructures mainly operated by Save Group Becoming a recognised player in a highly valued market Low investment requirement Increasing economies of scale 37

38 Section 5 Financial Highlights 38

39 Financial Highlights P&L Evolution First Quarter Profit & Loss (consolidated) Q Q 2006 million Total Revenues growth (%) 16.1% 6.9% 7.6% Ebitda ebitda (%) 29.6% 30.3% 28.6% 22.9% 23.7% Ebit ebit (%) 13.4% 11.8% 14.6% 8.1% 10.0% Tax rate 35.9% 65.0% 51.9% 112.3% 50.5% Earnings earnings (%) 6.5% 3.2% 6.6% 0.4% 8.3% * figures based on IAS/IFRS accounting standards. 39

40 Financial Highlights P&L split by SBU First Quarter Profit & Loss (SBU1) Q Q 2006 Euro mln Total Revenues growth (%) 11.1% 3.0% 2.7% Ebitda ebitda (%) 41.0% 43.1% 40.8% 34.3% 35.7% Profit & Loss (SBU2) Q Q 2006 Euro mln Total Revenues growth (%) 18.0% 15.6% 11.3% Ebitda ebitda (%) 9.3% 10.6% 11.9% 6.7% 12.6% Profit & Loss (SBU3) Q Q 2006 Euro mln Total Revenues growth (%) 27.6% 11.4% 15.5% Ebitda ebitda (%) 7.9% 8.2% 9.0% 3.6% 3.2% * figures based on IAS/IFRS accounting standards. 40

41 Financial Highlights Balance Sheet Evolution First Quarter Balance Sheet (consolidated) Q 2006 million NWC Fixed Assets Long Term Provisions (15.0) (19.5) (20.6) (22.5) CE Total Shareholders' Equity Net Financial Position D / E * figures based on IAS/IFRS accounting standards. 41

42 Financial Highlights Cash Flow and Net Financial Position: 1 Quarter 2006 Consolidated Cash Flow 31 march 2006 (Eu/mln) Euro mln Euro mln Consolidated NFP 31 march 2006 (Eu/mln) (1) (10.1) Gross Cash Flow + nwc Investments (+) Net Financial Position 0 Bank and NFP other liabilities reimboursment Cash (Injection)/ Reduction NFP During the 1Q2006 the divestment of 6.46 million of Gemina shares, has generated a cash-in of 16.6 million included 2.7 million of appreciation. 42

43 Disclaimer This document has been prepared by Aeroporto di Venezia Marco Polo S.p.a. - SAVE ("SAVE") solely for use at the presentation to potential institutional investors and it is not to be reproduced or circulated to any person other than to whom it has been provided at the UBS General meeting (Milan 14, July 2006) and is not to be used in the United States, Canada, Australia or Japan. The information contained in this document has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of SAVE or any of their representatives shall have any liability whatsoever (in negligence or otherwise) for any loss arising from any use of this document or its contents or otherwise arising in connection with this document. This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. Neither this document nor any part or copy of it may be taken or transmitted into the United States or distributed, directly or indirectly, in the United States, or to any U.S. Person as that term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the Securities Act ). Neither this document nor any part or copy of it may be taken or transmitted into or distributed directly or indirectly in Australia (other than to persons in Australia to whom an offer of securities may be made without a disclosure document in accordance with Chapter 6D of the Corporations Act 2001 (Cth.)), or taken or transmitted into Canada or Japan, or distributed directly or indirectly in Canada or distributed or redistributed in Japan or to any resident thereof. Any failure to comply with this restriction may constitute a violation of U.S., Australian, Canadian or Japanese securities laws, as applicable. The distribution of this document in other jurisdictions may also be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. In this case no reliance will be placed on SAVE. This document has not been approved for the purpose of section 21 of the Financial Services and Markets Act It is being made available only to persons who are of a kind described in Article 19(5) of the Financial Services and Marketing Act 2000 Order 2001 or persons to whom such document may otherwise lawfully be issued or passed on. The statements contained in this document that are not historical facts are "forward-looking" statements (as such term is defined in the United States Private Securities Litigation Reform Act of 1995), which can be identified by the use of forward-looking terminology such as "believes", "expects", "may", "will", "should" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. These forward-looking statements, such as the statements regarding SAVE s ability to develop and expand its business, the effects of regulation, changes in overall economic conditions, capital spending and financial resources and other statements contained in this document regarding matters that are not historical facts involve predictions. No assurance can be given that the anticipated results will be achieved. Actual events or results may differ materially as a result of risks and uncertainties facing SAVE and its subsidiaries. Such risks and uncertainties include, but are not limited to, increased competition and regulatory, legislative and judicial developments that could cause actual results to vary materially from future results indicated, expressed or implied in such forward-looking statements. By viewing the material in this document, you agree to the foregoing. 43