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Mundys (formerly: Atlantia SpA) Investor Presentation 2021
6228_rns_2021-03-12_4beb6606-16e9-4033-a648-bfbc911cd9e7.pdf
Investor Presentation
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2020 Results and Strategic Update
Table of Contents
-
- 2020 Highlights
-
- Main Assets Overview
-
- Strategic Update
-
- Appendix
2020 Highlights Business Overview
(1) New Financing includes €2.0bn of hybrid bond issued in Nov 2020 and Jan 2021 accounted for as equity under IAS32
2020 Highlights
New Vision, New Organisation
- Atlantia as investment holding company focused on portfolio management, ESG, strategy, talent attraction, partnership
- Reinforced governance, autonomy and responsibility of Group's operating subsidiaries
| Top management reorganization | Clear focus on governance | ESG | |||
|---|---|---|---|---|---|
| • New CEOs for Atlantia, AdR and ACA (after ASPI new CEO in 2019) • 80% of Atlantia parent company top management turned over with attention to diversity (40% women) • New IT and Digital Transformation Officers hired for Atlantia and all major operating subsidiaries • 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 |
• Appointment of new independent / 3rd party members in the BoD of ASPI, ACA and Telepass • New board committees for key matters (e.g. Risk Management, Investment and Remuneration Committee) chaired by an independent director in the main operating subsidiaries • Appointment of new risk officers directly reporting to the relevant CEO • Appointment of the Internal Audit Officer for Atlantia as well as for each operating subsidiaries, reporting to the relative Chairman • Adoption of new Ethical Rules of Conduct and Policy on Disciplinary Actions, Suspension, and Termination of Employment |
• New Chief Sustainability Officer in Atlantia 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 c.11,000 employees in Italy • Cancellation of all incentive plans for 2020 and reduction of base remuneration of Atlantia's Chairman and CEO in 2020 • Successful launch of the first green bond of ADR for €300m |
|||
| Risk management |
- Risk culture: dissemination of an adequate risk management culture within the Group, to support the achievement of the strategic, operational and sustainable development objectives of the Group and each Company
- Adoption of a new Enterprise Risk Management system
2020 Highlights New Management Team
2020 Highlights
Traffic Performance
- The Covid-19 pandemic and subsequent government restrictions had a significant impact on traffic
- With the easing of lockdown toll-road traffic proved to recover quickly
- Recovery of airport traffic expected to benefit from the exposure to leisure segment
2020 Highlights Key Figures
(1) ASPI €1.5bn of provisionsin 2019 for the settlement agreement with the Grantor
2020 Highlights Financial Strength
- Proven access to the market even in the current moment
- €9.2bn new bonds issued across the group in the period Jan 2020-Feb 2021
- Improved liquidity profile across different platforms
- Mix of cash and committed undrawn lines to optimize financial cost
- Proceeds from Telepass disposal to be cashed in at closing (expected in 1H 2021)
- Clear and conservative financial policy to support investment grade ratings target
(1) Pro-forma figures as of 31.12.2020 adjusted for key early 2021 transactions: Atlantia (holding): (a) New 2028 bond (€1.0bn) and prepayment of 2022 term loan maturities for the same amount; (b) 2023 RCF reimbursement (€1.25bn); (c) 2021 undrawn RCF cancellation (€2.0bn) ASPI: New 2030 bond (€1.0bn) Abertis: (a) New hybrid bonds (€0.75bn); (b) 2023 term loan maturities prepayment (€0.75bn); (c) new 2026 syndicated loan (€0.5bn)
2020 Results and Strategic Update 12 March 2021
4.8
2020 Highlights
Summary of ASPI Disposal Process
- On 14 July 2020, as part of the proposal submitted to the Italian Government to settle the ongoing procedure for alleged serious breaches of ASPI's concession, Atlantia expressed its availability to cede control of the subsidiary through a market transaction
- On 24 September 2020 Atlantia launched a dual track process for:
- the outright sale of its 88% stake in ASPI through a competitive process
- the partial demerger and listing of its 88% stake in ASPI through a new listed vehicle, Autostrade Concessioni e Costruzioni (ACC)
| Outright | Proposed financial and contractual terms of offers received from CDP consortium have been deemed by the Atlantia's BoD not consistent with the interests of Atlantia or its stakeholders as a whole |
|
|---|---|---|
| Sale | If a binding offer is received (not later than 31 July 2021) and considered BoD will call a new EGM proposing the revocation of the demerger |
in the Company's interests, Atlantia's |
| 15.1.2021 Atlantia EGM approved the demerger plan (99.7% of the capital voting in favour) |
Final structure | |
| Demerger | Effectiveness of the overall transaction remains subject to a number of conditions precedent; among others the receipt of a binding offer to be approved by a new EGM from a third party buyer for the 62.8% of share capital of ACC |
New Investors Free Float 62.8% 37.2% Autostrade |
| 29.3.2021 New EGM called to vote for the extension from 31 March 2021 to 31 July 2021 of the deadline for receiving a binding offer |
Listed Concessioni e Costruzioni 11.9% 88.1% ASPI |
|
| 2020 Results and Strategic Update | (and subsidiaries) 8 12 March 2021 |
Table of Contents
- 2020 Highlights
2. Main Assets Overview
- Autostrade per l'Italia
- Abertis
- Other Overseas Motorways
- Aeroporti di Roma
- Aéroports de la Côte d'Azur
- Telepass
-
- Strategic Update
-
- Appendix
Autostrade per l'Italia
10
Roberto Tomasi, CEO
New Vision
Integrated life-cycle management (research, engineering, construction, operation, maintenance)
New service offering to travellers
Engineering innovation and applied research toward a "smart" infrastructure transformation
Sustainability as the core of value creation
| Delivery Plan |
Maintenance: | +60% on average in the 2020-2024 Plan (vs. previous cycle) |
|
|---|---|---|---|
| Investments: | +120% on average in new projects and amodernization of the network during the Plan period |
||
| Transformation Plan |
360° "Next" Fully digital data-driven |
operational mode: Toward a safe, transparent and ASPI |
|
| Sustainability | New photovoltaic panels (+45GWh/a of green energy) | ||
| Green infrastructure |
Charging infrastructures for electric vehicles (installation in 67 service areas already approved by MIMS) |
||
| Reforestation actions along all our infrastructure | |||
| Design-to sustainability |
Compliance to the best implementation and maintenance standards to ensure climate change resilience |
||
| Specific technical sustainability requirements for services and materials purchase tenders |
|||
| Energy efficiency |
Broad portfolio of on-going initiatives (eg. installation of low consumption LEDs in tunnels) |
Integrated Approach
Delivery Plan
A paradigm shift in network management, maintenance and upgrading systems in less than 2 years Strong acceleration of current investment
Transformation Plan "Next" Programme
Actions for the digitisation of processes and services,
transformation of the network into a "smart" infrastructure through leadingedge technologies
Human Resources-oriented
initiatives, induction and on-boarding programmes for the new recruits
Process, responsibility, risks and procedure mapping to implement a single system to ensure full operational excellence
Partnerships and
collaborations with the leading Italian universities to guarantee best training opportunities to all employees
Improvement and distribution of the ASPI Safety Academy initiatives to improve HSE (Health, Safety & Environment) culture
Implementation of a communication and information system through the use of national and internal channels
Transformation Plan Fully Digital Operational Model
| Transform ASPI into a data-driven, safe, fast, transparent and innovative company through digital |
Total investments 2021-23 | |||
|---|---|---|---|---|
| Vision | Development of 9 digitally-enabled Business Capabilities focused on • Strengthen Asset and Field-force Management |
|||
| • Innovate Customer Experience on its journey • Achieve Operational Excellence on internal processes |
~90 | ~200 | ||
| Selected digital achievements: company-wide KPI dashboard, Robotic Process Automation, "Digital Procurement Plan", ASPI-MIT Portal, Contract Management |
||||
| Initiatives | Major ongoing projects • Digital Asset Management platform, developed with IBM and Fincantieri NextTech, to monitor infrastructure health status • New user-friendly and innovative tolling lanes with NFC technology, to be deployed on the entire network by 2024 • Development of "Smart Infrastructure" protocols to enable vehicle-to |
~110 | ||
| infrastructure / vehicle-to-vehicle communication | Inward looking (1) |
Outward looking (2) |
Total | |
| Benefits | • Establish a proactive approach to safety management • Strengthen customer relationship • Foster innovation and sustainability culture • Enable new adjacent digital businesses • Reduce operating costs |
(1) Operational excellence (eg. management, Recruitment Plan, …) (2) Services excellence (eg. tolling, digital travellers, …) |
ARGO, KPI, contract Safety 360°, seamless |
|
2020 Results and Strategic Update 12 March 2021
15
New Framework Proposal
- ASPI's new regulatory framework(1) to be composed of:
- A settlement agreement to close the dispute over the alleged serious breach of its obligation
- A new Economic and Financial Plan (EFP) that will set new capex, maintenance and efficiency standards
| Settlement Agreement |
• The comprehensive settlement solves the disputes raised after the Genoa bridge incident • Settlement amount totalling €3.4bn to be allocated on: - Tariff discounts - Non-remunerated capex - Genoa Community support, including the new bridge reconstruction (opened in August 2020) |
|---|---|
| • New Mutual and definitive withdrawal of all the pending litigations between Grantor and ASPI • Mutually agreed interpretation of the indemnification procedures in case of early termination |
|
| EFP | • New Economic and Financial Plan features a RAB-based tariff regime which provides protection from traffic risk • Three tariff components based on ART guidelines: - Operational charge for operating costs - Construction charge for capital charges - Additional charge due to revenue losses in 2020 and thereafter due to Covid-19 impact on traffic • A new model which distinguishes between existing / authorised investments and new investments |
| (1) The new framework is subject to the approval by the relevant Government Bodies |
2020 Performance
- (1) 2019 Reported EBITDA €710m, excluding 1,500m of provisions for the settlement agreement and change in funds discount rate;
- (2) Change in provision of operational funds (-€88m), staff, Covid-19 related costs, concession fees (net of additional concession fees with no impact on EBITDA) and other revenues / costs;
- (3) Additional provision for the settlement agreement (€190m), change in funds discount rates (€66m), Genoa related costs mainly toll discounts (€60m).
Key Highlights 2020 and Covid -19 mitigants
Toll and services area revenues
• -€880m decline in toll revenues and revenues from services areas related to initiatives to support sub-concessionaires during the Covid-19 emergency
Accelerated maintenance plan
- Despite Covid-19 maintenance on ASPI network accelerated in 2020 reaching 680m (+€325 vs 2019)
- Group capex reached €575m (in line with 2019)
Other costs
- Government support on labor cost ("Cassa Integrazione") for 14 weeks on c. 20% of the FTE with a total saving of €6m vs 2019, coupled with a reduction of FTE and a reduction of incentive plan (-€29m vs 2019)
- Reduction of Concession fees linked to traffic decrease (- €111m vs 2019)
Recovery of regulated revenues
• Partial recovery of the revenue losses incurred in the period March – June 2020 due to Covid-19 (included in the new EFP); recovery measures post July 2020 under discussion for all operators
Financing
• Two bonds issued in Dec 2020 and Jan 2021 for a total of €2,250m maturities 2028 and 2030 and a 2% coupon
Abertis
José Aljaro Navarro, CEO
Key Priorities
Strategy Levers
- Renew asset portfolio:
- Replace expiring cash flows (mainly in Spain) and increase average concession life
- Expand geographical footprint mainly in developed countries, creating new growth platforms
- Integration of the newly acquired assets
- Implementation of Abertis' best practices
- Extract value from existing platforms, exploring new opportunities in the short/mid term which could provide tariff increases or concession extensions (e.g. Ramales, Mexico, free flow tolling in Chile and France...)
- ESG priority, road safety, back-office and asset digitalization and innovation in operations and free-flow
- Financial discipline:
- Enhance cash flow generation
- Maintain a strong financial position, ensuring competitive capital market access and investment grade rating
- Financial flexibility with a sustainable balance between growth and shareholders' remuneration
2020 Key Facts
- Successful entry in Mexico and US complying financial discipline and ensuring prudent financial policies
- Total EV acquired in 2020 c.€6.5bn (c.€4.6bn from RCO and c.€1.9bn from ERC)
- Efficiency Plan 2018-21 overcoming the initial targets
- Successful issuance of €3.5bn at Abertis (including €2.0bn hybrid bonds issuance in 2020-2021)
- At HIT level €1.2bn bond issuance
- Focus on Covid-19 Measures • €875m dividend paid in 2020, new policy of 600m for 2021 and 2022
2020 Performance
| Key Figures | |||
|---|---|---|---|
| Km travelled | EBITDA €m | EBITDA Chg. (L-f-L) | |
| Spain | -30,6% | 705 | -29% |
| France | -24,1% | 972 | -23% |
| Italy | -27.6% | 150 | -35% |
| Brazil | -7.3% | 233 | -13% |
| Chile | -25.7% | 281 | -27% |
| Mexico(1) | -11.8% | 183 | - |
| Puerto Rico | -20.3% | 85 | -25% |
| Argentina | -39.6% | 14 | -15% |
| India | -15.2% | 17 | -19% |
| Total | -21.1% | 2.627 | -24% |
Key Highlights 2020 and Covid -19 mitigants
Pro-active management of the Covid-19 crisis, implementing measures to protect employees, users as well as business and financial operations
Opex reduction: -€143m (9% of total costs vs 2019)
Rationalization and optimization of operations (-€61m)
• Opex reduction by renegotiation of contracts, G&A reduction and staff cost optimization
Variable costs (-€82m)
• Reduction of costs directly linked to revenue drop (e.g.: mainly direct taxes on revenues and concession fees)
Investments
• Capex reduction of €299m in 2020 vs planned capex based on a prioritization of projects
Engagement with Grantors
• Economic compensation for business disruptions actively sought by concessionaires
Financing
• Refinance short term maturities at good market conditions and reinforce liquidity position
Note: Change in scope of consolidation: Expired concessions Aumar (Dec '19), Autovias (Apr '19), Centrovias (Jun '20), ViaPaulista fully operative from Feb '19, consolidation of RCO (May '20)
(1) Consolidated from May 2020. Traffic represented on 12m pro-forma basis; (2) Change in scope of consolidation and other minor changes (-€413); (3) Change in scope of consolidation and other minor changes (€260m), FX and hyperinflation (-€142m); (4) Success fees of RCO and ERC acquisitions, Argentina hyperinflation impact on opex and other minor changes.
Recent Acquisitions
- Abertis demonstrates its ability to continue to expand its concession portfolio and further diversify into countries with a low risk regulatory framework
- Total EV acquired: c.€6.5bn (c.€4.6bn from RCO and c.€1.9bn from ERC)
RCO | Mexico (May 2020)
- 876km in operation in Mexico (5 concessions)
- 28 years of remaining concession life (FARAC1)
- Primary connection between Mexico's two largest cities in the country fast-growing industrial corridor
- Plataforma for growth (e.g. Ramales project)
- Abertis holds a stake of 53.1% for an equity consideration of c.€1.5bn
- Investment partner: GIC
2020 Results and Strategic Update 12 March 2021 21
Elizabeth River Crossings | US (December 2020)
- Concession operating a toll-road system which include 2 tunnels in the area of Norfolk, Virginia
- 50 years of remaining concession life
- Concession operating since 2012, 16km concession including the relevant access roads, essential asset
- Abertis holds a 55.2% stake in ERC for an equity consideration of c.€0.6bn
- Investment partner: Manulife insurance
Other Overseas Motorways
2020 Results and Strategic Update 12 March 2021 22
Roberto Mengucci, Investment Director Americas & Asia Pacific
Other Overseas Motorways
(excl. Abertis Group)
| Key Figures | |||
|---|---|---|---|
| Km travelled | EBITDA €m | EBITDA Chg. | |
| Brazil | -13.6% | 132 | -33% |
| Chile | -27.0% | 159 | -44% |
| Poland | -19.8% | 36 | -10% |
| Total | -19,8% | 327 | -37% |
Key Highlights 2020 and Covid-19 mitigants
Asset resilience
• Notwithstanding the negative impacts on traffic due to Covid-19, the assets have shown strong resilience thanks to management ability in mitigating Covid-19 effects maintaining a cash EBITDA margin higher than 80% in Chile and 70% in Brazil
Opex reduction: -€32m vs. 2019 (-16%)
Rationalization and optimization of operations (-€22m)
- G&A reduction (e.g. lower professional assistance)
- Reprogramming of maintenance interventions not related to safety
- Reduction of variable costs (e.g. toll collection, billing, customer service)
Concession Fees (-€10m)
• Lower concession fees paid to the Authority mainly related to the profit sharing mechanism in Poland
Investments
• Capex reduction of €55m in 2020 vs planned capex based on a prioritization of projects
Engagement with Grantors
• Economic compensation for business disruptions actively sought by concessionaires according to contracts provisions
Active support to users and local community
- Donation in Chile of medical devices and financed local support of a team of doctors from Italy
- Donations to the poorest communities and arrangement of medical facilities
Drivers for Long Term Growth
Key trends
GDP pro capite growth (1)(2)(3)
travel Aircraft cost efficiency enhancement (4)
Single aisle aircrafts capable to cover long haul will make new routes profitable allowing direct links with final destination airports
Low-cost carriers further development (5)(6)
LCC business model drove Europe traffic growth (cagr +7% vs 2.5% other carriers) and will allow more people to travel in the next years as well
Leisure traffic inbound flows (7)
From '06 to '19 leisure traffic grew at a 5,1% rate, higher than business traffic (+2,7%). Europe represents the main continent for inbound touristic flows
High growth potential for long haul travel (only 16% of total EU touristic flows as of today(7)), and development of infra-EU traffic pushed by LCC further penetration
Key success factor ADR well positioned
Rome is the most visited city in Italy, the 5th in Europe and 16th in the world (>10 Mpax inbound arrivals(8))
High share of inbound traffic (65%(8)) and leisure traffic (68%(8)) that will faster recover from Covid crisis
Strong share of long haul traffic, (17%(8)) growing at a 5% annual rate since 2010 ✓
With nearly 50 Mpax(8) ADR is the 1st airport system of Italy and 7th in Europe, for passenger volumes
(1) Data source GDP pro capite growth, Boeing commercial market outlook 2020-2039; (2) Data source GDP pro capite Statista; (3) Data source Global traffic growth IATA traffic forecast October 2020; (4) Data source traffic by served airport typology CAPA (Centre for Aviation); (5) Data source LCC market share on total sold seats CAPA; (6) Data source LCC future penetration IATA airport IS database (7) Data source of traffic data Euromonitor International edition 2019; (8) Data refers to 2019 figures
ADR Key Priorities
| Support market recovery post Covid-19 |
Safe flights | • Upkeep initiatives that support post-Covid recovery of traffic volumes by increasing flight confidence (ie. Covid-tested flights, on-site rapid testing, airport vaccine centre, and so on) |
|---|---|---|
| Competitive tariffs |
• Discuss with regulatory bodies specific measures to smooth tariff spikes |
|
| Expansion capex |
• Maintain long-term strategic vision shared with the grantor, confirming +€8bn investment plan aimed at reaching the 100 million passengers target by concession end |
|
| Operational excellence |
Quality and efficiency |
• Push continuous execution of quality improvement and efficiency projects (e.g. airport management, maintenance, security, etc), to further optimize operational standards |
| Innovation & digitalization |
Innovation | • Increase effort to promote "open innovation" schemes applied to air transport market, fostering collaboration with external players (universities, innovation labs, financial sponsors, etc.) |
| Digitalization | • New technologies aimed at delivering a better passenger experience, increasing efficiency/reliability (eg. automation, IOT,), offering a seamless experience (eg biometric scan, touchless check-in/boarding) |
|
| Sustainability | ESG | • Acceleration of path towards decarbonisation, soil efficient plan, increased focus on social impact and stakeholders' engagement |
| Green finance |
• Confirm the commitment towards ambitious sustainability targets, through a clear set of KPIs, eligible for sustainability-linked finance |
Covid-19 Health and Security Measures
Robust health security measures recognizes as world class
Check of body temperature with high technology devices Continuous disinfection of all the areas
Social distancing Physical protection
Plexiglas protection screens
Realization of major in-airport anti-Covid facilities
High capacity Rapid Antigen Detection facilities
Reduction of seating and waiting areas, signage to remind social distancing…
within the Terminal area Largest drive-through testing centre of Lazio
Large Vaccination Center Realized in the long-stay car park, capacity of 3k vaccination / day
Multiple awards received
ADR 1st in EU to obtain the certification
FCO first to receive this certification (maximum of the rating received - 5 stars – for the anti-Covid-19 protocols and measures)
Design & implementation of safe travel protocols
New York JFK - Rome Fiumicino and Rome Fiumicino-Milano Linate Covid tested flights, operated by Alitalia
Covid tested flights
Covid tested flight, operated by Delta
2020 Performance
| Economics | |||
|---|---|---|---|
| €m | 2019 | 2020 | Chg. % |
| Revenues | 953 | 272 | -71% |
| Opex | (357) | (244) | -32% |
| Personnel cost |
(172) | (120) | -30% |
| Other operating cost | (185) | (124) | -33% |
| EBITDA | 596 | 28 | -95% |
Key Highlights 2020 and Covid-19 mitigants
Opex reduction: c. -32% in 2020 vs 2019
Optimization of operations
• Operations concentrated in FCO Terminal 3, with temporary closure of CIA airport and FCO Terminal 1 and boarding gates (reduction of security costs, cleaning…)
Workforce management
• Government support on labor cost ("Cassa Integrazione") and no recourse of interim workers; c. 1,466 FTE (-44% vs 2019) for a saving of -€52m vs 2019 (-30%)
Operating costs
• Savings of €61m (-33%), mainly related to contract renegotiation with suppliers, external costs cut and lower concession fees
Investment
- Postponement and reconsideration of capex: €211m for 2020 (c. -58% vs plan)
- Safety, security and maintenance capex fully confirmed
Concession agreement mitigants
- Concession extension by 2 years granted to all Italian airports
- Partial recovery of regulated revenue deficit as per concession agreement (expected application of the traffic risk protection clause of the contract - Article 45.1)
Financing
- €680m new loans raised in the first 9M2020
- €300m new "green" bond in last quarter
- Cash available as at 31 December 2020 equal to €1.1bn
2020 Performance
| Economics | |||
|---|---|---|---|
| €m | 2019 | 2020 | Chg. % |
| Revenues | 290 | 134 | -54% |
| Opex | (168) | (114) | -32% |
| Personnel cost |
(46) | (36) | -22% |
| Other operating cost |
(122) | (78) | -36% |
| EBITDA | 122 | 20 | -84% |
Traffic Key Highlights 2020 and Covid-19 mitigants
Opex reduction: -32% vs 2019
Optimization of operations
• All operations concentrated in Terminal 2.2. T1 and T2.1 closed (reduction of security costs. cleaning…)
Workforce management
- Interim workers and recruitments stopped; government support on labor cost ("chomage partiel")
- Total saving of approx. €10m vs 2019 (-22%)
Operating costs
• Saving of €44m (-36%), mainly related to cleaning, utilities and maintenance, following concentration of the operations in T2.2
Investments
- Postponement T2 extension and development projects: approx. €43m capex for 2020 (-50% vs plan)
- Safety, security and maintenance capex fully confirmed
Tariff
• +3% tariff increase approved effective from 1 Nov 20 to 31 Oct 21
Concession revenues mitigants
• Discussion with the grantor have just started for the economic and financial rebalancing of the concession (art. 74)
Financing
- Cash available as at 31 December 2020 equal to €78.1m
- €105m of new financing
- Refinancing of Azzurra (controlling 64% of ACA) via issuance of €660m of new bonds
A New "One-stop" Mobility Platform
New High Impact Projects to Foster Growth
- A new innovative solution to connect the cars and to give customers the possibility to access mobility services
- A platform that integrates valueadded and tolling services;
- Innovative OBU featuring an integrated voice assistant;
- User's interface directly through the App.
2020 Performance
| Economics | |||
|---|---|---|---|
| € m | 2019 | 2020 | Chg. % |
| Revenues | 221 | 234 | +6% |
| Opex | (97) | (116) | +20% |
| EBITDA | 124 | 118 | -5% |
- 9.1 million OBU (+2.7%) and growing number of Mobility customers (+25%)
- Increase in revenues (€234m, +6%), despite a very difficult year for mobility, mainly due to the positive performance of net subscription and the contribution for the full year 2020 of the new insurance products
- Opex increase mainly in connection with higher volumes of transaction, consolidation of the structure to prepare future developments
- EBITDA decline (-€6m, -5%) reflects Telepass strategy to continue its development path
- Investments: despite Covid-19, the investment plan proceeded €88m spent +9% vs 2019 (Managing General Agency Platform, new generation OBU, etc.)
- Business Plan focuses on:
- Expanding presence in Europe, becoming leader in Tolling,
- Developing a new "one-stop" mobility platform both for Consumer and Business segments,
- Boosting in insurance policies sold through the "dual model" (Broker + Managing General Agency),
- Launching Telepass Next Generation on board unit
3. Strategic Update
Strategic Update Frame of Reference
Megatrends are Here
Importance of Innovation
PA and End-User Expectations
Integrated Mobility supported by new digital technologies Strong growth in short range mobility driven by urbanisation
New logistical models (ecommerce, reshoring, autonomous)
Accelerated growth towards green, sustainable mobility
infrastructure funds and direct investors for infrastructure assets Financial investors are often partnering up with strategics to get access to valuable industry expertise and track record
Strong appetite from
Technology is everywhere: drives why, how and when the infrastructure is used, how it is paid for, and how we maintain it
Innovation is also a tool to enhance business performance
The expectation from Public Authorities and end-users has evolved from simply maintaining the asset in good working condition to a continuous improvement of the performance and user experience
Priorities for Atlantia
New investment opportunities Develop competencies that span the integrated mobility network
Take advantage of leading operational capabilities Promote cross-fertilisation of knowledge in the asset portfolio Organisational agility as a lever to capture new business
Implement technologies that improve existing assets Enter businesses that technology has made highly complementary to our existing offering
From asset-led to customer-led organisation
Joint projects with Public Authorities to improve the quality of the mobility offering
Active Diversification Into Digital Infrastructures and Ancillary Businesses to Underpin Long-term Resilience and Return
Strategic Update Atlantia Has a Strong Track Record in Innovation
Strategic Update Our Mission, Values and Vision for the Future
Our Mission is Driven by a Clear Vision for the Future, Underpinned by Atlantia's Core Values
Strategic Update Strategic Initiatives
| Development of Our Current Portfolio |
Innovation as a Key Growth Lever |
Expansion Into New Synergetic Fields |
Multi-level Investment Platform |
|
|---|---|---|---|---|
| Focus on the development of key areas of potential within our current portfolio, and optimise capital allocation with selective and targeted rationalisation |
Drive transformation, becoming an «Innovation Pioneer», focussing on "New Services to Mobility" |
Expansion into adjacent, synergetic sectors to enhance the resilience of the portfolio and capture new opportunities |
Evolve Atlantia towards an agile and flexible strategic holding/ investment management company |
|
| E y bilit s n a o n cti ai A st u S |
Key focus on enhancing ESG credentials of our existing asset base |
Leverage the Atlantia platform to accelerate the impact of innovation in driving sustainability |
Sustainability compliance will be core to the selection of new investments |
Clear commitment of the holding company and its subsidiaries in defining specific sustainability targets |
| A | B | C | D |
Strategic Update A Development of Our Current Portfolio
Key Considerations Strategic Roadmap
| Airports | Leisure traffic expected to recover quickly after-Covid and return to long-term secular growth Sustainability remains a key topic, and technology/big-data will be critical in addressing it. Growth of origin and destination airports Atlantia has a demonstrable strong track record with AdR |
Strong push on innovation, sustainability and customer focus Continue to drive operational excellence in existing and new assets, using the differentiated know-how and track record of AdR and Nice Airport Focus on European leisure / final destination airports for future growth |
|---|---|---|
| Toll-roads | Traffic expected to recover quickly to pre pandemic levels, as demonstrated during summer 2020 ASPI delivering on the Transformation Plan Abertis provides a strong international platform Ongoing innovation and develpoment of smart road technologies |
Finalise ASPI settlement agreement and dual track process Continue to renew and develop Abertis' portfolio Further drive operational excellence |
| Mobility Services |
Sector with strong synergies with existing assets Room for growth in the smart mobility ecosystem (e.g. digital payments and insurance) |
Telepass to become a pan-European e-tolling leader New one-stop mobility platform for consumer and business segment |
| Other assets | Continue to optimise the portfolio of other investments (e.g. ongoing sale process |
+ for Stalexport and Lusoponte) |
Strategic Update Innovation as a Key Growth Lever B
Mobility will soon be different: a sustainable and integrated mix of transportation means
Sustainable
- Low emission vehicles will dominate due to increased consumer consciousness and regulatory incentives
- Widespread shift towards zero carbon and recycled materials
Shared
• Mobility on demand services will extensively replace current ownership models to grant flexibility, enhanced affordability and accessibility to travellers
Integrated
Connected
• Advanced software and hardware technology will enable a broad portfolio of connected services (i.e. In-vehicle-technology, infrastructure, back-end, IoT, AI)
Autonomous
- Autonomous driving and piloting will become mainstream, redefining the way we interact with and utilize infrastructure networks
- Single services converge into holistic VoD1 or MoD2 offerings governed by integrated platform providers & leading operators
- Convergence of mobility with other service offerings (insurance, entertainment, hospitability)
Strategic Update Innovation as a Key Growth Lever B
Strategic Update
C Expansion Into New Synergetic Fields
Relevant Technologies
Strategic Update
C Expansion into New Synergetic Fields – Case Study
Atlantia recently subscribed €15m in a €200m funding round for Volocopter
Products & services portfolio
Complementary to Atlantia's Strategy
- ✓ Broadening of Atlantia's mobility positioning, through an innovative, technological and sustainable initiative ("zero-emissions")
- ✓ Urban/suburban intermobility enabler
- ✓ Commercial integrations with AdR, through airport-city connections
- ✓ Utilisation of motorway service stations as vertiports for passenger and goods logistics, in particular close to urban areas/cities
-
✓ Contact opportunities in the development and management of vertiports
-
2021 for logistics, 2022 for passengers
Strategic Update D Multi-Level Investment Platform
| Key objectives: | |||||
|---|---|---|---|---|---|
| Holding Level | • Strategic frame for the group |
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| • Active asset allocator |
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| • Support the development of technology |
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| • Foster collaboration between the various assets (sharing of know-how and best practices) |
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| • Provide support in stakeholder relationships |
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| • Set the standard for corporate governance and compliance across the group |
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| • Ensure a consistent corporate culture across the group and focus on key themes such as safety, technological innovation and sustainability |
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| Asset Level | • Capital opening at divisional and asset level in order to enhance the fire power of the group, acquire new assets or competencies, partner-up with local or large institutional investors |
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| Specialised Investment Vehicles |
• Dedicated pools of capital to invest in specialised mobility investments • Lean and agile organisations with dedicated resources and high degree of independence from the group |
Strategic Update
E ESG Agenda 2021-2023 and Key Targets
Our ESG agenda is shaped around six key building blocks, focusing Atlantia's action to support the 2030 Sustainable Development Goals and setting specific commitments at group level
Strategic Update Atlantia's Equity Story
Investment Scope
Funding
Public/Private Partnership Model A publicly listed investment management company focused on macro trends that are reshaping the world of mobility, operating a large and global portfolio of assets, with a distinct focus on technological innovation
Atlantia to establish itself as a leader in applied innovation and technology to the tranportation infrastructure sector, delivering (i) tangible improvements to the performance of its assets while enhancing the customer experience, and (ii) expansion into adjacent areas to the benefit of the customer (new services and integrated product) and where Atlantia can extract meaningful shareholders value
Multi-level platform (Holding, asset level, specialised investment vehicles) to maximise the ability to deploy capital while optimising its cost through separated funding platforms with different risk / reward characteristics
Ability to offer to Public Authorities a highly competitive and differentiated portfolio of services and solutions fit for today's and tomorrow's world, with a focus on technology and modal integration, delivering tangible and visible value for customers
Table of Contents
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- 2020 Highlights
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- Main Assets Overview
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- Strategic Update
- 4. Appendix
Decarbonization Roadmap
Atlantia Group EBITDA
(1) Includes Atlantia holding company, Spea Engineering, Pavimental and others.
(2) Includes change in scope of consolidation for a total of +€288m (RCO consolidation for 8 months, ViaPaulista starts operations and Centrovias concession expired) offset by €190m ASPI additional provisions and €63m of Genoa related costs, €67m in discount rates changes applied to provision and FX rates for €211m
Change in Group Reported Net Debt
(1) Excluding derivatives and IFRIC12 adjustments
(2) Acquisitions: RCO (€3.3bn) and ERC (€1.4bn), disposals: ETC (€40m), Sky Valet (€11m) and Alis (€152m)
(3) Abertis Finance €1.25bn hybrid bond issued in Nov 2020 (perpetual, non-callable until 5.25 years from issuance) is accounted for as equity under IAS32
Group Debt Structure Pro-Forma as of 31.12.2020(I)
Note: Gross debt includes notional value of bank debt and capital markets debt (excluding hedging amounts and hybrid bonds). Cash does not include €640m deposits held by subsidiaries (mainly Chilean concession operators, ASPI and Elisabeth River Crossings in USA) which are subject to certain conditions of use according to concession and financing agreements.
(1) Pro-forma figures as of 31.12.2020 adjusted for key early 2021 transactions: Atlantia: (a) New 2028 bond (€1.0bn) and prepayment of 2022 term loan maturities for the same amount; (b) 2023 RCF reimbursement (€1.25bn); Abertis: (a) Abertis Finance hybrid bonds (€0.75bn); (b) 2023 term loan maturities prepayment (€0.75bn); (c) new 2026 syndicated loan (€0.5bn); ASPI: New 2030 bond (€1.0bn)
(2) Of which €4.4bn notional guaranteed by Atlantia (€4.7bn post currency swaps), €3.9bn guaranteed notional as of today after repayment of €0.6bn bond expired in February 2021
(3) Abertis Finance €2.0bn hybrid bonds (perpetual, non-callable until 5.25 and 6.25 years from the respective issuance) accounted as equity under IAS 32
(4) €752m of Atlantia holding debt has been raised via a collar financing, funded by the underlying 8% stake held in Hochtief and equity derivatives
Recent Refinancing
| Type | Amount | Issuance Date |
Original Maturity |
Fixed/Variable | Spread swap(3) vs Mid |
Coupon | |
|---|---|---|---|---|---|---|---|
| (1) Euro million |
|||||||
| Italy | |||||||
| Atlantia | Bond | 1.000 | 09/02/2021 | 7y | Fixed | MSW+230 | 1.875% |
| Bond | 1.250 | 01/12/2020 | 8y | Fixed | MSW+250 | 2.00% | |
| ASPI | Bond | 1.000 | 12/01/2021 | 9y | Fixed | MSW+235 | 2.00% |
| Aeroporti di Roma | Green Bond | 300 | 25/11/2020 | 8.2y | Fixed | MSW+200 | 1.625% |
| Total Italy | 3.550 | ||||||
| Spain | |||||||
| Bond | 600 | 30/01/2020 | 8y | Fixed | MSW+148 | 1.25% | |
| Abertis Infra | Bond | 900 | 19/06/2020 | 8.75y | Fixed | MSW+255 | 2.25% |
| Hybrid Bond |
1.250 | 17/11/2020 | Perpetual (NC 5.25y) |
Fixed | MSW+369 | 3.25% | |
| Abertis Finance (2) | Hybrid Bond |
750 | 13/01/2021 | Perpetual (NC 6.25y) |
Fixed | MSW+327 | 2.625% |
| Total Spain | 3.500 | ||||||
| France | |||||||
| Bond | 600 | 24/04/2020 | 7y | Fixed | MSW+280 | 2.50% | |
| HIT | Bond | 600 | 09/09/2020 | 9y | Fixed | MSW+200 | 1.625% |
| Bond | 360 | 21/07/2020 | 3.85y | Fixed | MSW+255 | 2.125% | |
| Azzurra Aeroporti | Bond | 300 | 21/07/2020 | 6.85y | Fixed | MSW+300 | 2.625% |
| Total France | 1.860 | ||||||
| Brazil | |||||||
| Debenture | 158 | 15/09/2020 | 5y | Var CDI+ |
n.a. | CDI+2.50% | |
| Arteris | Debenture | 72 | 15/09/2020 | 7y | (4) Fixed |
n.a. | 4.8392% |
| Debenture | 63 | 18/12/2020 | 6y | Var CDI+ |
n.a. | CDI+2.50% | |
| Colinas | Debenture | 16 | 18/12/2020 | 3y | Var CDI+ |
n.a. | CDI+2.00% |
| Total Brazil | 309 | ||||||
| Total Recent Refinancing |
9.219 | ||||||
| (1) FX rates applied as of 31/12/2020: BRL/€ 6.374 2020 Results and Strategic Update (2) Guaranteed by Abertis Infra (3) At date of issue |
12 March 2021 | 53 |
(4) Inflation linked notional
Disclaimer
records.
This presentation has been prepared by and is the sole responsibility of Atlantia S.p.A. (the "Company") for the sole purpose described herein. In no case may it or any other statement (oral or otherwise) made at any time in connection herewith be interpreted as an offer or invitation to sell or purchase any security issued by the Company or its subsidiaries. nor shall it or any part of it nor the fact of its distribution form the basis of. or be relied on in connection with. any contract or investment decision in relation thereto. This presentation is not for distribution in. nor does it constitute an offer of securities for sale in Canada. Australia. Japan or in any jurisdiction where such distribution or offer is unlawful. Neither the presentation nor any copy of it may be taken or transmitted into the United States of America. its territories or possessions. or distributed. directly or indirectly. in the United States of America. its territories or possessions or to any U.S. person as defined in Regulation S under the US Securities Act 1933.
The content of this document has a merely informative and provisional nature and is not to be construed as providing investment advice. The statements contained herein have not been independently verified. No representation or warranty. either express or implied. is made as to. and no reliance should be placed on. the fairness. accuracy. completeness. correctness or reliability of the information contained herein. Neither the Company nor any of its representatives shall accept any liability whatsoever (whether in negligence or otherwise) arising in any way in relation to such information or in relation to any loss arising from its use or otherwise arising in connection with this presentation. The Company is under no obligation to update or keep current the information contained in this presentation and any opinions expressed herein are subject to change without notice. This document is strictly confidential to the recipient and may not be reproduced or redistributed. in whole or in part. or otherwise disseminated. directly or indirectly. 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 current expectations. These statements are based on current plans. estimates and projections. and projects that the Company currently believes are reasonable but could prove to be wrong. 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 or implied 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. Past performance of the Company cannot be relied on as a guide to future performance. No representation is made that any of the statements or forecasts will come to pass or that any forecast results will be achieved. By attending this presentation or otherwise accessing these materials. you agree to be bound by the foregoing limitations.
Pursuant to Article 154-bis, paragraph 2, of the Consolidated Finance Act, the officer responsible for the preparation of Atlantia's corporate financial reports, Tiziano Ceccarani, declares that the accounting information contained in this document corresponds with that contained in the accounting documentation, books and