OeBB-Infrastruktur AG. Investor Presentation. June 2015

Transcription

1 OeBB-Infrastruktur AG Investor Presentation June

2 OeBB-Infrastruktur AG Business framework 100% owned by the Republic of Austria Under the Federal Railways Act, OeBB-Infrastruktur AG must be 100% owned by the state Explicit guarantees Republic of Austria guarantees directly, unconditionally and irrevocably all of OeBB-Infrastruktur AG s debt issued under the EUR 20 bn EMTN Programme Strategic importance Strong explicit and implicit support by the owner underscores the strategic importance of OeBB-Infrastruktur AG to the Austrian economy Natural monopoly As sole owner and constructor of virtually the entire Austrian railway network, OeBB-Infrastruktur AG has close ties to the Ministry of Finance and the Ministry for Transportation Liquidity guarantee The master guarantee provided by the Republic of Austria is included in the base prospectus of the Debt Issuance Programme Stable revenues OeBB-Infrastruktur AG has stable and predictable revenues from rail usage charges, electricity sales and property leasing Strong controls OeBB-Infrastruktur AG is closely monitored by the Ministry of Finance and the Ministry for Transportation. The 6-year master plan is annually renewed and approved. 2

3 OeBB-Infrastruktur AG Investment cycle for railway infrastructure 6-year master plan Rolling basis: agreed between OeBB-Infrastruktur AG and the Republic of Austria Redemption of bonds and financial contribution to maintenance Government payments as provided in the Federal Railways Act, Articles 42 and 47 Investments in the Austrian rail infrastructure Investments in new and expanded rail infrastructure Funding by the capital market Based on the guarantee of the Republic of Austria as provided in: - Federal Budget Act - Federal Fiscal Act - Federal Railways Act 3

4 OeBB-Infrastruktur AG Environment and sustainability Strengths of OeBB-Infrastruktur AG according to oekom research report 2014: + high percentage of renewable energy + appropriate measures in infrastructure operations to maximize health and safety of users + appropriate strategies for extending infrastructure durability + appropriate measures to reduce transport-related noise emissions + appropriate measures to reduce transport-related air emissions 4

5 OeBB-Infrastruktur AG Organisation and structure 5

6 OeBB-Infrastruktur AG Group structure 100% owned by the Republic of Austria OeBB-Holding AG OeBB- Personenverkehr AG Rail Cargo Austria AG OeBB-Infrastruktur AG European Contract Logistics-Austria GmbH OeBB-Business Competence Center GmbH OeBB-Postbus GmbH Rail Cargo Hungaria Zrt. OeBB-Immobilienmanagement GmbH OeBB-Werbung GmbH 50% OeBB-Produktion 50% GmbH OeBB-Produktion GmbH Mungos Sicher & Sauber GmbH 49% OeBB-Technische 51% Services-GmbH OeBB-Technische Services-GmbH Rail Equipment GmbH Rail Tours Touristik GmbH Rail Cargo Logistics- Austria GmbH As of October, 2014 This organizational chart contains a selection of the most important companies of the OeBB Group 6

7 Responsibility for the market, financial health and service quality Strategic planning and management of a needs-based, eco-friendly and reliable rail infrastructure High focus on consumers and market Project development, utilization and real estate portfolio management Stakeholder management Infrastructure funding Sole owner of facilities and systems 7

8 Responsibility for infrastructure facilities Ensure availability, safety and economical operation of facilities Inspection, maintenance, repair, fault clearance, overhaul and reinvestment in and around the railway system Professional, rail-specific construction services Management of complex investment projects Lifecycle management 8

9 Responsibility for operations and systems Train station management Safe and punctual operations Cleanliness and service Reliable customer information at stations Train path management Innovative rail and IT systems Quality management and continuous improvement Securing sustainable revenue 9

10 OeBB-Infrastruktur AG Investments 10

11 Infrastructure Expansion Programme Central goals Basis for interval timetables following the Swiss model Shift of freight transport to railways CO 2 reduction by expanding capacity for shift to rail transport Modernization of stations: safe, clean, and accessible Optimization and cost reduction of rail facilities and operations Increase safety introduction of European Train Control System Focus on rail lines with freight and passenger potential 11

12 Infrastructure Investments based on Updated Master Plan Annual investment volume between EUR 2.1 and 2.5 bn approved by the Ministry of Finance and Ministry of Transport, Innovation and Technology Reinvestitionen Reinvestments Streckenneubauten New routes Expansion of Streckenausbau routes/additional tracks Bahnhofsinvestitionen Restructuring of stations Sonstige Other Gesamt Total

13 Updated Master Plan Key projects The Updated Master Plan of EUR 14.1 bn includes investments of about EUR 7.9 bn for 8 key projects: Key projects (EUR mn) Inzersdorf: terminal construction (Vienna Cargo Center St. Pölten: new construction freight train bypass Remote operations management centers Wien Blumental Wampersdorf: 2-track expansion, Pottendorf line Linz Wels: 4-track expansion Gloggnitz Mürzzuschlag: new route construction Graz-Klagenfurt: Koralm railway (projects in contract) Brenner Base Tunnel 13

14 Trans-European networks (TEN) Baltic-Adriatic Corridor (dark blue) Connects the Baltic with Adriatic Sea (via southern Poland, Vienna, Bratislava, Eastern Alps, and northern Italy) with the projects Semmering Base Tunnel and Koralm railway in Austria Rhine-Danube Corridor (light blue) Connects the regions around Strasbourg and Frankfurt via southern Germany to Vienna, Bratislava, Budapest and ending at the Black Sea East-Eastern Mediterranean Corridor (brown) Connects the maritime ports of the North, Baltic, Black and Mediterranean Seas. Includes a connector into Austria Scandinavian-Mediterranean Corridor (pink) North-south axis, links major urban centers and ports of Scandinavia and northern Germany with Italian ports and Valletta, with the Brenner base tunnel and feeder routes into Austria 14

15 We design the railway to serve for generations Southern Axis Koralm railway Graz Klagenfurt Western Route 4-track expansion Brenner Base Tunnel Connecting Europe s cities, ports and industries Station Modernization More comfort and accessibility Freight Center Vienna South Safety and Existing Network Regular maintenance, upgrades and repair 15

16 Vienna Central Train Station European transport hub Connection of European railway routes 1,000 trains 145,000 customers daily Urban development project 20,000 workplaces 5,000 apartments 90 shops schools and offices park and hotel Best connection to multiple means of transport 16

17 Cargo Center Vienna South Construction of a multifunctional freight terminal in the region around Vienna and Lower Austria 2 cranes 4 loading tracks Excellent access from 2016 on Linkage rail - road Container handling 210,000 ITU*/year * (intermodal transport unit) 17

18 Semmering Base Tunnel Key project of the new Southern route and the Baltic-Adriatic axis (Danzig Bologna) Construction through 2025 Speeds of up to 230 km/h Up to 40 minutes faster from Vienna to Graz 27.3 km length of tunnel Efficient long, heavy freight trains with only 1 locomotive 18

19 Koralm Railway Direct, fast connections between Graz and Klagenfurt 130 km new railways 33 km long Koralm tunnel Better accessibility for the regional economy significantly shorter travel time for commuters 12 new stations with Park&Ride and Bike&Ride facilities 19

20 Brenner Base Tunnel 64 km-long tunnel Longest underground railway connection in the world Major European project Through the tunnel in 25 minutes Commissioning 2026 Freight train speed of up to 120 km/h Travel time reduction between Innsbruck and Bozen from 2 hours to 50 minutes 20

21 OeBB-Infrastruktur AG Key financial data 21

22 OeBB-Infrastruktur Financial figures in accordance with IFRS EUR millions Total Revenue 3,014 3,047 3,115 Total Expenses 2,423 2,441 2,480 EBIT Financial Result Tax Net Profit Total Assets 19,725 20,133 21,341 Total Equity 1,149 1,174 1,199 Financial Liabilities 17,112 17,704 18,874 22

23 OeBB-Infrastruktur Debt maturity profile Financial Liabilities EUR 17.8 bn as of April 30, 2015: 86% of debt guaranteed by the Republic of Austria 99.7% fixed rate Bonds Anleihen EIB loans, bank loans EIB-Darlehen, Bankkredite

24 OeBB-Infrastruktur AG Capital markets 24

25 OeBB-Infrastruktur AG Capital market financing In 2005 OeBB-Infrastruktur AG (formerly OeBB-Infrastruktur Bau AG) established an EMTN programme of EUR 10 billion In 2011 the EMTN Programme was expanded to EUR 20 billion 13 benchmark bonds issued between 2005 and 2014 The annual funding requirements amount to EUR 2 billion on average Benchmark bonds, private placements and EIB loans are used for financing 25

26 OeBB-Infrastruktur AG Capital market transactions 2014 OeBB Infrastruktur EUR 500 million at 2.25% due May 28, Demand by geography 15 year EUR 500 million no-grow benchmark. Very positive traction from real money investors and also a number of banks and agency buyers. Final pricing at mid-swaps +24 bps 2.25% coupon with a re-offer yield of 2.28%. Insurances/ Pension funds This transaction again demonstrated the excellent perception of OeBB among domestic and international investors Demand by investor type 26

27 OeBB-Infrastruktur AG Capital market transactions 2014 OeBB Infrastruktur EUR 1 Billion 1.00% due November 18, 2024 Demand by geography 10 year EUR 1 billion benchmark. Very positive traction from real money investors and also a number of banks and agency buyers. Final pricing at mid-swaps +8 bps 1.00% coupon with a re-offer yield of 1.103%. This transaction again demonstrated the excellent perception of OeBB among domestic and international investors Demand by investor type 27

28 Guarantee by the Republic of Austria (2015) The master guarantee provided by the Republic of Austria is included in the base prospectus of the Debt Issuance Programme Republic of Austria guarantees all OeBB-Infrastruktur AG debt issued under the EMTN Programme The Guarantor unconditionally and irrevocably guarantees to the holder of each 2015 Note (each a "Holder"), the due and punctual payment of the principal of, and interest on, the Notes where the Guarantor s obligations hereunder shall not exceed the Guarantee Allowance for the year ended December 31, 2015 and in circumstances where the 2015 Notes issued under the Programme shall benefit hereunder in accordance with the provisions of the Federal Fiscal Act 2015 and the Federal Budget Act Any amounts of principal or interest exceeding the Guarantee Allowance are not being guaranteed. Debt ranks pari passu to Republic of Austria Guarantee constitutes the direct, unconditional, irrevocable and unsecured obligation of the Guarantor and ranks pari passu with all other loan or bond indebtedness of the Republic of Austria resulting from financial debts. 28

29 Excerpts from the Federal Railways Act Provision of the Railway Infrastructure and Railway Infrastructure Projects, Art. 42 (1) The Federal Republic shall grant to OeBB-Infrastruktur AG on its request a subsidy in particular for the management of the railway infrastructure and making it available to railway users insofar and so long as the earnings to be achieved under current market conditions from the users of the railway infrastructure do not cover the expenditure arising under economic and commercial management. (2) Further, the Federal Republic shall grant subsidies for the maintenance, planning and building of railway infrastructure. Required Means, Federal Liability, Art. 47 (1) The Federal Republic, represented by the Federal Minister of Transport, Innovation and Technology, together with the Federal Minister of Finance, shall ensure that the required means are available to OeBB-Infrastruktur AG for fulfillment of its functions and for the maintenance of its cash-flow and equity capital to the extent covered by the business plan pursuant to Article 42 (6). (2) The Federal Minister of Finance is entitled to assume, on behalf of the Federal Republic, for the financing of the railway infrastructure, a liability pursuant to Article 66 Federal Budget Act, Federal Law Gazette No. 213/1986 for bonds, loans, credits and other credit transactions of OeBB-Infrastruktur AG, including associated financing costs. 29

30 Excerpt from Federal Fiscal Act 2015 Austria s annual Federal Fiscal Act governs OeBB-Infrastruktur AG s entitlement to guarantees for financing: According to Art. X, paragraph 1 no. 4 Federal Fiscal Act for 2015 (Bundesfinanzgesetz 2015) the Federal Minister of Finance is authorised in the fiscal year 2015 to assume, in the name of the Federal Government (Republic of Austria) and pursuant to Art. 82 of the Federal Budget Act 2013 the liability as warrantor and payer pursuant to Art Civil Code (Allgemeines Bürgerliches Gesetzbuch) or in the form of guarantees for lending transactions to be executed by the Issuer to finance the infrastructure pursuant to Art 47, paragraph 2, of the Federal Railways Act (Bundesbahngesetz) to such extent that the sum (equivalent) of the guarantees does not exceed principal in the amount of EUR million, interest and expenses in the amount of EUR million, and a lending transaction amount of EUR million in capital in each individual case. 30

31 OeBB-Infrastruktur AG Standard & Poor's Rating AA+ (stable) - Analysis Date: August 8, 2014 The ratings on Austria-based rail infrastructure company OeBB-Infrastruktur AG reflect S&P s Ratings Services opinion that there is an almost certain likelihood that the Republic of Austria (AA+/Stable/A-1+) would provide timely and sufficient extraordinary support to the company in the event of financial distress. In accordance with our criteria for government-related entities (GREs), our view that there is an almost certain likelihood of extraordinary government support is based on our assessment of OeBB- Infrastruktur AG s: Critical role for the government as the owner, constructor, and operator of virtually the entire Austrian railway network; and Integral link with the government, owing to the state s indirect full ownership of OeBB-Infrastruktur AG, which subjects the company to tight legal, planning, and operational controls, as well as a strong support framework. The company enacts the government s railways improvement plan, which leads to a planned peak debt of about 31 billion in as agreed with the government. 31

32 OeBB-Infrastruktur AG Moody's Rating Aaa (stable) - Credit Research Date: March 4, % state ownership the legal keep-well obligation the provision that the government is entitled to guarantee any indebtedness incurred for the financing of infrastructure investments most of the existing debt carries a state guarantee 2007 budget authorisation act provides stability and long-term visibility for federal investment grants to be received, covering the portion of investments which exceed the company s debt capacity intention to issue debt under the EMTN programme only, if this carries a state guarantee close scrutiny and control by the government strategic importance of a functioning, well-invested rail infrastructure for the economy of Austria 32

33 OeBB-Infrastruktur AG oekom Corporate Rating 33

34 OeBB-Infrastruktur AG Contact information OeBB-Infrastruktur AG Praterstern Vienna, Austria Andreas Matthä, OeBB-Infrastruktur AG, Management Board Member andreas.matthae@oebb.at Contacts: Alfred Buder, OeBB-Holding AG, Head of Group Finance alfred.buder@oebb.at Gernot Netinger, OeBB-Holding AG, Head of Corporate Finance gernot.netinger@oebb.at Website: