London 7 July Analyst & Investor Briefing

Transcription

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2 Disclaimer THIS DOCUMENT HAS BEEN PREPARED BY ATLANTIA S.P.A. (THE COMPANY ) FOR THE SOLE PURPOSE DESCRIBED HEREIN. IN NO CASE MAY IT BE INTERPRETED AS AN OFFER OR INVITATION TO SELL OR PURCHASE ANY SECURITY ISSUED BY THE COMPANY OR ITS SUBSIDIARIES. THE CONTENT OF THIS DOCUMENT HAS A MERELY INFORMATIVE AND PROVISIONAL NATURE AND THE STATEMENTS CONTAINED HEREIN HAVE NOT BEEN INDEPENDENTLY VERIFIED. NEITHER THE COMPANY NOR ANY OF ITS REPRESENTATIVES SHALL ACCEPT ANY LIABILITY WHATSOEVER (WHETHER IN NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY FROM THE USE OF THIS DOCUMENT. THIS DOCUMENT MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON. THE INFORMATION CONTAINED HEREIN AND OTHER MATERIAL DISCUSSED AT THE PRESENTATION MAY INCLUDE FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE COMPANY S BELIEFS AND EXPECTATIONS. THESE STATEMENTS ARE BASED ON CURRENT PLANS, ESTIMATES AND PROJECTIONS, AND PROJECTS. HOWEVER, FORWARD-LOOKING STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES. WE CAUTION YOU THAT A NUMBER OF FACTORS COULD CAUSE THE COMPANY S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT. SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO: TRENDS IN COMPANY S BUSINESS, ITS ABILITY TO IMPLEMENT COST-CUTTING PLANS, CHANGES IN THE REGULATORY ENVIRONMENT, ITS ABILITY TO SUCCESSFULLY DIVERSIFY AND THE EXPECTED LEVEL OF FUTURE CAPITAL EXPENDITURES. THEREFORE, YOU SHOULD NOT PLACE UNDUE RELIANCE ON SUCH FORWARD-LOOKING STATEMENTS. 1

3 Table of Contents 1. Overview 2. Update on Regulatory Framework 3. Business Drivers and Financial Targets 4. International Growth Strategy 5. Investment Considerations 2

4 1. Overview 3

5 Preliminary Remarks Rome 12 October 2007 London 25 October 2007 London 7 July 2008 Autostrade per l Italia and ANAS signed the single concession contract scheme Presentation of the main content and clauses of the new concession contract Illustration of the approval process Update on status of the current investment plan and overview of the new one Perspectives for international growth Business update after new concession contract approval 4

6 Turnaround Operational efficiency and quality De-bottlenecking Successful implementation of programme to improve quality of service, while driving operational efficiency Accelerated committed investments Agreed further commitment to additional investments Capital structure Regulatory framework International development Efficient reorganisation, between 2003 and 2004, of the Group s capital structure Introduced a clear and predictable regulatory framework with the new concession contract of Autostrade per l Italia Deployed a selective and strategic approach to international growth (Europpass, Costanera Norte, Stalexport) 5

7 Growth Drivers ( m) Automation Delayering Paving costs Service areas royalties Telepass development Tower Management 193 Strada dei Parchi acquisition (2001) Re-opening Mont Blanc tunnel (2002) Stalexport Autostrady acquisition (2007) , m +37.7% m +61.7% 1,037 EBITDA 1999 Cost efficiency Business development Other Tariff growth * Traffic growth EBITDA 2007 Note: 1999 figures are Italian GAAP compliant, 2007 figures are IFRS compliant * Net of change in the concession fee from 1% to 2.4% since

8 The Group as of Today 3,413 Km toll motorway network under concession in Italy 61% of the Italian toll roads 83% of population served 87% of national GDP covered Leader in automatic toll collection with over 6 million customers Largest Italian private investor with over 18bn of projected major work Accelerating contribution from international business Chile Costanera Norte (2006) Poland Stalexport (2007) US ETC (2007) Brazil and Argentina (through an interest in Impregilo, Italy s largest construction company) Concessionaire Lenght Km Maturity Autostrade per l'italia 2, Strada dei Parchi Autostrada Torino-Savona Autostrade Meridionali Autostrada Tirrenica Raccordo Autostradale Valle d'aosta (RAV) Tangenziale di Napoli Mont Blanc tunnel Total Group network 3, ANAS and other concessionaire 7

9 Group Structure Abertis 6.68% (1) 38.06% Fondazione CRT 6.68% (1) UniCredit Generali 3.347% (1) 3.422% (1) 100% 41.8% Free float Italian concession business 8 motorway concessionaires 3,413 km of infrastructure under concession in Italy 248 service areas International concession business Costanera Norte (45%) Chile 43km Stalexport (56.2%) Poland 61km Impregilo Concessions (2) in South America (Brazil and Argentina, about 1,900km) Tolling, engineering, construction, O&M ETCC Texas/US (45%) SPEA (100%) Pavimental (71.67%) Impregilo (2) Dulles Greenway Virginia/US (100%) (1) Former Schemaventotto shareholders (Source: Consob) (2) Autostrade per l Italia has a 33.3% interest in IGLI that has a 29.55% ownership in Impregilo 8

10 Outlook Operational efficiency and quality De-bottlenecking Capital structure Continuous commitment to efficiency and quality of service Complete the committed investment programmes to de-bottleneck approximately 900 km of the Italian network Cost of capital optimisation through debt-funded new investments and reduced regulatory risk Regulatory framework International development Continuing investments in core assets with a guaranteed return, enabling long term traffic growth Accelerate international growth leveraging on industrial expertise and financial flexibility 9

11 Business Development Strategy Focus on core business New projects No planned investments in non-core activities Unlock value from non-core assets requiring higher critical mass (e.g. TowerCo) New opportunities to be evaluated on a strict business risk/reward model consistent with the core business targeted returns Financial strategy Partnership Exploit leverage potential while maintaining a solid financial structure Disposal/dilution of Italian assets unable to comply with the Group s investment criteria Co-investment with Sintonia and/or other partners to pursue risk and geographical diversification Launch dedicated infrastructure investment vehicles open to other primary investors to operate in large scale markets 10

12 2. Update on Regulatory Framework 11

13 Key Events Regulatory uncertainty New regulatory framework Law Decree 262/2006 (converted into Law no. 286/2006) CIPE Directive no. 1/ CIPE Directive no. 39/2007 (review of the previous Directive no. 1/2007) Signing of the single concession contract scheme between Autostrade per l Italia and ANAS Law no. 101/2008 approves the new concession contract of ASPI Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July 2008 On 12 October 2007 Autostrade per l Italia (ASPI), and ANAS, the Italian Public Highway agency, signed the single concession contract scheme required by law no. 286/2006, that introduced a new regime for motorway concession The new concession contract was fully approved on 6 June 2008 that complied with the requests set by the EU Commission 12

14 Pillars of the New Contract A new price cap formula A simple formula for the entire duration of the concession based on a fixed percentage of actual inflation (70%*CPI) New investments Explicit indemnities A defined mechanism to remunerate additional investments not originally included in the 1997 Concession Agreement through specific additional tariff component (X factor and K factor) Clear provisions for the compensation of overrun costs as well as penalties in case of delays An explicit compensation mechanism in the event of regulatory changes or early termination of the concession Covenants & guarantees Well defined constraints on indebtedness, extraordinary transactions and change of control involving the concessionaire 13

15 A New Price Cap Formula Annual change in tolls = 70% * CPI + X + K Inflation X factor K factor 70% of actual rate of inflation for previous 12 month period (1 July 30 June) Compensation of the 2002 investment plan based on an IRR equal to 7.2% real post tax Compensation of the new investments based on a RAB system with a return on investment equal to WACC pre-tax before additional leverage (CIPE Directive no.39/2007) For the purpose of calculating the X factor and the K factor construction risk is passed to the concessionaire after the completion of the authorization process and the approval of the definitive project by ANAS (apart from a force majeure event or third party reason) 14

16 Capex Commitment Autostrade per l Italia Investment Programmes Residual Capex (1) & Investment Period Status as at 31 March 2008 Tariff Compensation Major works 1997 Concession Agreement 4.0 bn % 41% 20% Executed In progress 70%*CPI Major works 2002 Supplementary Agreement 5.6 bn % 43% 45% To be authorized X Factor Reallocation of Ongoing Capex to New Investments 2.0 bn Already included in 1997 Concession Agreement capex commitment 70%*CPI Completion of noise reduction plan 0.7 bn Included in the new contract K Factor (RAB based) New Investments ~ 5.0 bn Commitment to implement the preliminary plan to upgrade over 300 Km of network with additional new lanes K Factor (RAB based) Total 17.3 bn (1) Gross capex, excludes government grants, capitalized costs, ongoing capex, non motorway investments 15

17 Explicit Indemnities Pass-through Early termination Indemnity In the event of tax, legislative and regulatory changes with specific impact on the industry, by means of a pass-through mechanism, tariffs are adjusted upwards to fully indemnify the concession holder The types of contractual failures that can lead to revocation, withdrawal or termination of the concession (even by the concessionaire in the case of unilateral changes in the regulation) are expressly regulated In case of early termination of the concession, an indemnity is always explicitly provided for, which is equal to the net present value of expected cash flows until the end of the concession as originally agreed in the concession contract (net of a penalty equal to 10% of the value applied only in the case of revocation due to Concessionaire s fault) 16

18 Covenants and Guarantees Financial Covenant Liquidity Regulatory Provisions Extraordinary Transactions Acquisitions & Disposals Introduction of a covenant (DSCR>1.2x) (1) that the Concessionaire must comply with at the end of every fiscal year Commitment to have irrevocable financing available in an amount equal to the investment gap with respect to the concession agreement plan In case of delay in the 1997 Concession Agreement investments, the Concessionaire must set aside regulatory provisions of equity capital equal to equivalent cumulated net profits until the investments reach the originally planned amount ( 4.5 bn) Mergers, de-mergers, liquidation, headquarters move, change in purpose of the company, involving the concession holder, are subject to authorisation No change of control rules apply (apart from common market practices) Not subject to authorisation if DSCR>1.6x (pre and post transaction) (1) Debt Service Coverage Ratio = Operating Cash Flow before Interest/Debt Service 17

19 Other Provisions Revenues sharing mechanism Penalties Administrative Sanctions On a five years basis, in the event that actual traffic for the same period results in an annual growth rate higher than 1% with respect to estimates stated in the 2002 Supplementary Agreement (1), 50% of the economic benefit (net of taxes) is paid into a special fund for financing new investments without additional tariffs In the event that a quality indicator used in the previous tariff formula shows a fall below 2006 levels, Concessionaire has to pay a penalty equal to 2m Other penalties are provided for in case of deterioration of quality standard (ranging from 10,000 up to 500,000) 25,000 penalty per month of delay in the completion of project phase of investments or in the execution of works (after all authorisations are granted) in case of Concessionaire s fault Sanctions ranging from 25,000 up to 2m are charged in case of violations of information obligations to ANAS, as well as of major contractual obligations (1) The 2002 Supplementary Agreement forecast a 1.75% annual growth from 2008 to 2012, 1% from 2013 to 2017, 0.5% from 2018 to 2022 and 0% thereafter. The share of net revenues subject to claw back is equal to 75% in the event traffic exceeds those estimates by 1.5%. 18

20 Other Group Concessionaires Negotiation of the single concession contract is ongoing for the other group concessionaires in compliance with law no. 286/2006 Concessionaire Autostrada Tirrenica Autostrada Torino-Savona New single concession contract Ongoing negotiation Ongoing negotiation Remarks Negotiation underway for the completion of the Tyrrhenian Corridor 206km Project under the examination by CIPE Compensation to be based on criteria set by CIPE Directive no. 39/2007 (RAB System) Autostrade Meridionali, RAV, Strada dei Parchi, Tangenziale di Napoli Ongoing negotiation Possible option for RAB system to compensate cost overruns vs. original capex commitment Mont Blanc Tunnel Not subject to law no. 286/2006 Concession contract regulated by Italy-France bilateral agreement 19

21 3. Business Drivers and Financial Targets 20

22 Key Financials and Targets Budget CAGR ( m) E Revenues 3,500 +4% 4,050 EBITDA 2,120 +5% 2,550 Net income % 900 FFO 1,300 +5% 1,600 Adjusted EBITDA (1) 2,150 +6% 2,700 Adjusted net income (2) % 1,075 Dividend per share Net debt/ebitda DSCR 10% annual growth 4.3x on average 2.7x on average (1) Gross of capitalized revenues related to works under completion remunerated by additional tariffs (2) Gross of additional depreciations for the opening to traffic of new works after

23 Key Operating Drivers Main Drivers Possible 2008 Upside/Downside Revenues Net toll revenues Service areas Others Traffic growth, CPI, new investments Renewal of expiring concession contracts Electronic tolling, contract works, new services Lower traffic growth Higher extraordinary royalties Costs Maintenance costs Paving cycle, infrastructure, deterioration Personnel costs Other costs Internalization of maintenance activities, automation, business development Concession fee, increase in contract works and electronic tolling business Cost optimization EBITDA Margin Increase of capitalised revenues and lower capitalisation of costs Development of core related business with lower margin 22

24 Traffic Growth Demonstrable long and stable track record of tolled traffic Very rare declines in severe economic circumstances 10% 8% 6% 4% 2% 0% -2% -4% -6% % Annual Growth Italian GDP Y-o-Y Traffic Growth 23

25 Limited Correlation to Oil Price Macroeconomic indicators are the main traffic growth drivers Average GDP +2.8% Average Traffic +3.1% Average GDP +1.8% Average Traffic +3.4% per litre 1 st Oil Crisis 2 nd Oil Crisis ,0 1,8 1,6 1,4 1,2 1, % 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% Average petrol price in 2007 real value (left axis) Y-o-Y Traffic Growth (right axis) 24

26 User Profile The Group s network is an essential transport link for both commuter and freight traffic Oil price surge impacts on long haul traffic that, however, accounts for a limited portion of total volumes Traffic breakdown by distance travelled (2007) * Correlation of light traffic to gas price ( ) 6% % of transits 34% 26% 26% 22% 21% 18% 17% 24% Light vehicles Heavy vehicles Y-o-Y traffic growth 5% 4% 3% 2% Short haul (<50km) Long haul (>300km) 3% 4% 1% 2% 1% 0% > 500 Km travelled (*) Data refers to Autostrade per l Italia network -1% 0% 2% 4% 6% 8% 10% Y-o-Y average petrol price growth 25

27 2008 Traffic Growth In the short term traffic volumes tend to be volatile Leap year effect +1.3% +3.4% Underlying Y-o-Y traffic growth Y-o-Y traffic growth +0.3% Easter break +1.8% -0.2% +0.2% Underlying traffic growth: -0.1% Easter break: -0.3% Leap year effect: +0.6% Easter break -2.3% -2.5% 1Q 2008 Preliminary 2Q 2008 Preliminary 1H

28 Benefits from De-bottlenecking Most recent examples show a positive impact after the opening of new lanes ADT Per lane Before Traffic growth (1) Enlarged Section Entire Network ADT Per lane After Traffic growth (2) Enlarged Section Entire Network 4 th lane Modena-Bologna (Km: 33.6 / Opening: May 2006) Annual gap Cumulated gap (3) 16, % 3.2% -2.0% -9.3% 13, % 2.3% +2.2% 4 th lane Milan-Bergamo (Km: 47.6 / Opening: October 2007) Annual gap Cumulated gap (3) 18, % 3.1% -1.3% -14.7% 14, % 0.2% +7.9% (1) Average monthly Y-o-Y traffic growth from January 2001 until start up of works (2) Average monthly Y-o-Y traffic growth since the opening of the 4 th lane until May 2008 (3) Cumulated lower traffic growth since January 2001 until completion of works 27

29 Group s Major Works Undergoing The Group is investing over 18bn to de-bottleneck nearly 900 km of roads 100% RAV - 0.4bn (12 km) Monselice - Padova Sud 100% Milan-Bergamo - 0.5bn (33km) Modena - Piacenza Sud % Lainate-Como - 0.2bn (23km) Accessibility to Milan Trade Fair Area - 0.1bn (4 km) Lodi - Milano South Genoa bypass - 2.5bn (34 km) Turin Milan Genoa Bologna Florence Venice Modena-Bologna - 0.2bn Bologna Area - 0.2bn (45 km) Ferrara - Bologna Ravenna - Bologna S. Lazzaro Interchange Casalecchio 100% % 11% Variante di Valico 3.2bn (66km) Florence Interchange 1.7bn (58 km) Firenze - Pistoia Pistoia - Montecatini Incisa - Valdarno Rome Pescara Naples Bari Rimini North -Porto S. Elpidio - 2.5bn (154 km) Strada Dei Parchi-0.4bn (20 km) SAM - 0.4bn (20 km) 63% % Orte-Fiano - 0.2bn (37 km) Santa Marinella -Torreinpietra Fiano Romano - Settebagni 0.2bn (14 km) S.Cesareo - Colleferro Colleferro - Frosinone Works envisaged in Autostrade per l Italia l and subsidiaries original concession agreements ( ) Works envisaged in Autostrade per l Italia l th Supplementary Agreement New additional investment envisaged in the new concession agreement of Autostrade per l Italial Stage of completion as of December 2007 as a percentage of kilometers opened to traffic on the total subject to investments Expected completion date 28

30 Revamping the Italian Toll Road Network Current and new investments allow for long term unconstrained traffic growth ADT per lane 2007 (1) Sections subject to investments ADT per lane 2021 (1) Sensitivity with an accumulated traffic growth equal to approximately 25% between 2008 and 2021 % Network 63.9% 29.2% 6.1% ~7 % of the network 0.5% 0.3% % Network 48.1% 46.2% 5.1% ~6 % of the network (2) 0.6% 0.0% <12,000 12,001-16,000 16,001-20,000 20,001-22,000 >22,001 <12,000 12,001-16,000 16,001-20,000 20,001-22,000 >22,001 (1) Average Daily Traffic (ADT) on Autostrade per l Italia network (2) Of which 130 km eligible for further de-bottlenecking investments 29

31 Revenue Breakdown ( m) 3,272* , , A 2008 B 2012 E Net toll revenues Service areas 3,500* Non recurring items * Net of capitalized toll revenues 4,050* Capitalised toll revenues Other Revenues Stalexport and ETC 100 Conservative traffic assumptions with a gradual recovery from 2008 slowdown Autostrade per l'italia tariffs driven by inflation growth and compensation for additional investments Capitalised toll revenues increase significantly pending the opening to traffic of works remunerated by additional tariffs Renewal of about 160 subconcession contracts in to contribute one-off increase in revenues from service areas. New contracts replicate fee structure introduced in (80% fixed and indexed to CPI; 20% based on volume) Revenues from automated payment system mainly driven by increase on Telepass OBU (8.5 million by 2012) Increase in contract works carried out by Pavimental Full consolidation from 2008 onwards of Stalexport (6 months only in 2007) and ETC 30

32 Staff Costs ( m) * Trend Full consolidation of Stalexport and ETC from 2008 Increase in FTE due to internalization of maintenance activities and reinforcement of staff dedicated to traffic assistance, partly offset by the outplacement of toll collectors thanks to higher automation Capitalization of costs related to people employed in design and work management Long Term Trend 2007 A 2008 B 2012 E Staff costs Capitalised staff Acceleration in the outplacement of toll collectors thanks to higher natural attrition rate Stalexport and ETC * It excludes the positive non recurring item in 2007 of 29.4m (the so-called curtailment ) 31

33 Maintenance Costs ( m) Trend 1, Slow down in paving activities after having completed in 2007 the extra-thick draining pavement on Autostrade per l Italia s network Acceleration of maintenance plan for viaducts and tunnels Savings from internalization of maintenance activities Reduction in capitalized costs due to the completion of the accelerated maintenance programmes Long Term Trend 2007 A 2008 B 2012 E Net maintenance costs Capitalised maintenance Stalexport Steady cycle for paving and extraordinary maintenance 32

34 Other Costs ( m) Trend Full consolidation of Stalexport and ETC from 2008 Increase in costs associated to new contract works Increase in costs associated with sales of automated payment systems and related services Long Term Trend 2007 A 2008 B 2012 E Organic growth Operating costs Stalexport and ETC Non recurring items 33

35 Group Investments Profile (1) ( mln) 2,000 1,800 1, Other Investment Italian motorway plan subsidiaries 2002 Noise Investment reduction plan plan completion New investment commitment Ongoing Ongoing capex capex New 2002 investments 4th Supplementary agreement 1997 Investment Plan Noise reduction plan completion Other Italian motorway subsidiaries 1,400 1,200 1, (1) Excludes government grants, capitalized costs, motorway investments not included in present concession agreements, non motorway investments, overseas investments 34

36 Solid Premessa and Stable Credit Quality Strong credit quality even after new capex commitment Single A rating with stable outlook by Moody s (A3) and S&P (A) Avg. Net Debt/Ebitda : ~ 4.0x Avg. DSRC : ~ 2.5x Long term availability of financial resources with average debt maturity of 8 years, with no significant debt maturing before % of consolidated total debt at fixed rate/hedged Average cost of debt in the range of 5.1% Gross debt as of 31 December ,000m FRN '04-'11 2,750m Notes '04-'14 750m Notes '04-'22 1,000 Notes '04-'24 800m Term Loan* 450m EIB Loan** Other 1,118 * Amortising loan with final maturity in 2015 ** Two amortising loans: 200m with final maturity in 2021 and 250m with final maturity in

37 4. International Growth Strategy 36

38 International Growth Strategy The Group s strategy for international growth is based on strict investment criteria designed to minimize business risk and to exploit competitive advantage Greenfield Focus on urban toll roads for minimization of traffic risk Brownfield Key focus to leverage on core competences Achievement of a critical mass by country Privatisations Operator of toll roads with limited equity commitment In most of the projects under evaluation the Group has the control or the joint control of bidding consortia formed with strong local partners Sintonia brings key competitive advantages in terms of increased financial flexibility and global coverage 37

39 Markets and Regulatory Framework II I High Russia USA Romania India Market Attractiveness (1) Turkey Bulgaria Mexico Brazil Poland Hungary Slovakia Chile Estimated greenfield share Estimated brownfield share and privatisation 10 Estimated future project value ( bn) Czech Republic Low IV III Unfavourable Regulatory/contractual Framework (2) Favourable (1) GDP per capita as of today and future prospects, number of vehicles/inhabitant as of today and future perspectives, population and growth rate (2) Based on 7 quantitative parameters forecast by OCSE, SACE, World Bank and WSJ Sources: Infra-News, Dealogic, PPP news, Fondazione ENI privatization barometer, World Bank Privatisation database, EIU, OCSE, SACE, World Bank and WSJ 38

40 Opportunities Under Current Evaluation US: Electronic tolling/congestion pricing/privatisations Privatisation of Alligator Alley Statement of qualifications submitted for 126 km in operation Poland: Achieve critical mass BOT Strykow-Konotopa (Warsaw) 92 km to be built Selected as one of the two bidders in parallel negotiations Mexico: Privatization of FARAC 2 Statement of qualification submitted 370 km in operation 399 km to be built/enhanced ETC (Texas) Dulles Greenway (Virginia) Turkey: Privatization of motorway network 1,616 km in operations plus 244 km of connecting roads Stalexport (Poland) Russia: Urban toll road BOT Moscow-Minsk 19 km to be built, selected as preferred bidder India: National Highway Development Programme Statement of qualification submitted for 36 BOT/O&M concessions for a total of about 3,900 km Chile: Achieve critical mass Costanera Norte (Santiago,Chile) Brazil & Argentina: Leverage on Impregilo s market presence Market Presence Atlantia Impregilo 39

41 Investment Criteria & Market Dynamics 11.0%-13.5% Regulatory risk = 2% 13.5% 9.0%-11.5% Market IRR Construction risk = 2% 7.0%-9.5% Target project IRR (after tax) Traffic risk= 1.5 / 3% Operating risk= 1.0 / 1.5% 5.5%-6.5% 30 yr. Treasury bond yield + (4.5/5.0%) Country risk premium Tender phase Construction phase Opening to traffic Operating phase Greenfield Brownfield Privatisations Asset type Project value mainly related to the construction of new roads Project with limited construction works, mainly related to the revamping of existing roads Long duration Large size Competition Construction groups Integrated groups Infrastructure funds/toll road operators Status Credit crunch/construction crisis Credit crunch Consolidation 40

42 5. Investment Considerations 41

43 Investment Highlights Core Assets Regulatory framework Investment capacity Well-established nation wide network Long term concessions Demonstrable long and stable track record of tolled traffic Clear regulatory framework that defines rights and obligations Ability to continue to invest in core assets, thus allowing for unsaturated long-term traffic growth International growth Building a risk diversified portfolio based on the key competitive advantages to deliver international growth and attractive financial returns vs cost of capital Profitability Conservative business plan with sustainable profitability growth rates 10% annual dividend growth Financial strength Solid and stable credit quality, long term availability of financial resources Interest rate risks hedged 42