Investor Presentation • Nov 13, 2020
Investor Presentation
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13 November 2020
| Organisation | • Atlantia as investment holding company focused on portfolio management, strategy, talent attraction, partnership, sustainability • Reorganisation of Group's operating subsidiaries to reinforce governance, autonomy and responsibility |
|---|---|
| Change management |
• New CEOs for Atlantia, ADR and ACA (after ASPI new CEO in 2019) • 80% of Atlantia parent company top management turned-over • ASPI: 83% of top management and 74% of line management turned-over • Telepass: 90 new people hired to support business development and growth, including new CTO, CMO and Communication Officer • New IT and Digital Transformation Officers hired for Atlantia S.p.A. and all major operating subsidiaries |
| Governance | • Appointment of new independent or third party members in the Board of Directors of ASPI, ACA and Telepass, as already in place for all other main subsidiaries • New board committees for key matters (e.g. Risk Management Committee and Investment Committee) chaired by an independent director • Cancellation of all "dual role" positions between Atlantia S.p.A. and its subsidiaries and establishment of internal autonomous department for Finance & Administration, Internal Audit and Risk Management for all the operating subsidiaries • Adoption of a new Enterprise Risk Management system and appointment of new risk officers directly reporting to the relevant CEO • New whistleblowing policy and committees for each Group's company • Adoption of new Ethical Rules of Conduct and Policy on Disciplinary Actions, Suspension, and Termination of Employment |
| ESG | • New Chief Sustainability Officer in Atlantia S.p.A. directly reporting to CEO • New CSR positions in the line management of operating subsidiaries responsible for development and implementation of sustainability plans • Launched free share scheme for about 11,000 employees in Italy • Cancellation of all incentive plans for 2020 • Reduction of base remuneration of Atlantia's Chairman and CEO in 2020 |
| 9M20 Results Recent Developments 13 November 2020 |
* Excludes the remaining costs for the reconstruction of the San Giorgio bridge opened in August in 2020 and the additional compensatory measures for Genoa as part of the July 2020 settlement agreement with the Government (€200m)
• ADR has done an important effort from the very beginning of the pandemic in delivering COVID-19 protocols that enable a safe environment for customers and staff.
| Safety | • | Over 100 last-generation thermo-scanners for arriving/departing passengers (from 5 Feb 2020), sanitation, social distancing, protective screens for staff |
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|---|---|---|---|---|---|
| Measures | • | Rapid antigen tests for passengers since 16 Aug 2020 within the terminal facilities | |||
| • term park |
Set up of major drive through testing facility (8,000 square meters) in the airport car long | ||||
| First Covid-tested route introduced in Europe (Rome-Milan) | |||||
| • • Covid-tested extension also to some non-EU countries (trial designed, Government approval pending) |
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| Awards | |||||
| • First airport in the world to get the certification Biosafety Trust by RINA |
• First, and to date, sole airport in the world to be awarded of the 5 Stars Covid-19 Airport Rating by Skytrax (9 Sept 2020) |
• Airport Health Accreditation by Airports Council Int'l (since 20 Aug 2020) |
(€m)
(1) Includes Atlantia holding company. Telepass. Spea Engineering. Pavimental and others.
(2) Includes change in scope of consolidation for a total of +€200m (RCO consolidation for 5 months, ViaPaulista starts operations and Centrovias concession expired) offset by €700m of additional provisions in ASPI (additional maintenance included in the settlement proposal submitted to the Government in July 2020 and additional provisions for Genoa and change in discount rates applied to provision and FX rates for -172m
| Economics | ||||
|---|---|---|---|---|
| €m | 9M 2019 | 9M 2020 | ch. | |
| Revenues | 3,115 | 2,297 | -26.0% | |
| Opex | -1,212 | -1,116 | -8.0% | |
| Cost of personnel | -368 | -328 | -11.0% | |
| Other Operating cost | -844 | -788 | -7.0% | |
| One-off Provisions | 0 | -700 | n.s. | |
| EBITDA | 1,903 | 481 | -75.0% |
Remarks and Covid-19 Mitigants
• Delivery of accelerated maintenance programme is continuing in accordance with ASPI Transformation Plan
• Government support on labor cost ("Cassa Integrazione") for 14 weeks only on c. 20% of the FTE for a saving of €5m vs 9M2019 coupled with a reduction of FTE due to the slow down of the turn over and a reduction of incentive plan
• Reduction of costs directly linked to revenue drop (e.g.: mainly concession fees)
• No postponement of works linked to the safety of infrastructure
• Partial recovery of the revenue losses incurred in the period March – June 2020 due to Covid-19 pandemic
• Support from Atlantia for €900m (o/w €550m undrawn)
| Traffic | |||
|---|---|---|---|
| km travelled vs 9M19 |
LV | HV | Total |
| Spain | -34.8% | -11.1% | -30.9% |
| France | -25.6% | -11.4% | -23.2% |
| Italy | -31.6% | -8.7% | -27.6% |
| Brazil | -14.6% | -2.8% | -10.5% |
| Chile | -38.9% | -20.2% | -36.0% |
| Mexico (1) | -17.3% | -9.3% | -14.6% |
| Puerto Rico | -47.7% | -33.3% | -46.3% |
| Argentina | -23.7% | 1.3% | -22.9% |
| India | -20.6% | -30.7% | -23.9% |
| Total | -27.9% | -9.4% | -23.9% |
Opex reduction: -€99m (8% of total costs vs 2019)
• Capex reduction of €254m in 2020 vs planned capex based on a prioritization of projects
• Economic compensation for business disruptions actively sought by concessionaire where allowed by contract or via initiatives of engagement with Grantors
(1) Consolidated from May '20. represented on 9m pro-forma basis; (2) Mainly related to cost inflation in Argentina (3) Includes expired concessions Aumar (Dec '19). Autovias (Apr '19). Centrovias (Jun '20). new concession ViaPaulista fully operative from Feb '19. consolidation of Mexican RCO group (May '20). hyperinflation adjustments Argentina;
(1) Cash-in for the disposals of Abertis's Alis (€152m). ETC (€40m) and Sky Valet France (€10m)
(2) Depreciation of Chilean peso (-8.2%) and Brazilian real (-31.9%)
(3) Includes change in working capital and change in fair value of derivatives
(4) Of which €1.524m cash out by Abertis Infraestructuras to acquire 53.1% of RCO
Maturities up to 2022 vs Liquidity available (1) Remarks
14
| (Holding) | 0.0 0.0 0.0 0.0 1.2 2.0 |
0.0 0.0 |
0.0 4.0 2.0 |
• Pro-forma after reimbursement of €2bn RCF in Nov. 2020 and cash-in of Abertis dividends for (€216m ) • No debt maturities before 1Q 2022 |
|
|---|---|---|---|---|---|
| 2.2 0.7 0.6 0.5 |
1.8 | 0.0 | 0.0 | • Total liquidity equal to c. €2.4bn including the remaining €550m of financial support from Atlantia holding |
|
| 0.7 0.0 0.0 0.9 1.3 0.4 |
• €200m SACE credit line guaranteed by the Italian State drawn in August • €200m EIB facility drawn in September |
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| (Infraestructuras) | 0.4 0.0 1.3 |
2.2 | 1.0 | • Pro-forma after dividend payment on 12.11.2020 (€437m Abertis cash out) 4.5 |
|
| HIT Group | 2.1 1.7 |
0.6 | 0.0 0.5 |
2.8 | • €600m 9-year senior bond issued by HIT in September • €600m committed undrawn bank facility signed by HIT in October |
| (1) Figures adjusted |
0.0 0.0 0.0 for recent transactions; intercompany |
debt | excluded. For |
Debt maturities 2020-2022 further details see slide 17 |
Available Cash Committed lines expiring beyond 2022 Committed lines expiring by 2022 |
* Gross Debt includes bank debt and Debt Capital Market notional (excluding hedging amounts)
** €4.5bn debt is guaranteed by Atlantia (excluding the make whole amounts)
Figures as of 30.09.2020 adjusted for (a) €2bn Atlantia's RCF maturing in 2021 repaid in Nov. 2020 (b) Abertis dividends cash-in on 12.11.2020 (€437m cash-out by Abertis, €216m Atlantia cash-in); intercompany debt excluded
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