renato ravanelli - f2i investor meeting - milan, november 19th 2015
TRANSCRIPT
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Investor MeetingMilan, November 19th 2015
Dott. Renato RavanelliChief Executive Officer
Investor MeetingMilan, November 19th 2015
Dott. Renato RavanelliChief Executive Officer
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Table of Contents
1. F2i SGR SpA Shareholding Structure and Governance Fund I and Fund II: Domestic and International Investors
2. The Portfolio Companies General Overview of the Portfolio Performance of the Funds over the Years
3. The Investment Strategy Value Approach and Economic Environment Active Portfolio Management: Selected Case Studies Add on Investments and New Opportunities
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F2i SGR: the Management Company
I
II
Total Amount: € 1,85 bnEnd of investment period: Feb 2015(1)
Total amount invested: € 1,79 bn
Total Amount: € 1,24 bnEnd of investment period: Jul 2018Total amount invested: € 0,43 bn
F2i SGR SpA
1) Extended to Feb 2017 for add-on investments
Shareholders Participation %Cassa Depositi e Prestiti 14.01%
Intesa Sanpaolo 14.01%
Unicredit 14.01%
ASF Como LP (Ardian) 8.40%
Fondazione Cariplo 7.28%
CIC 6.72%
NPS 6.72%
Inarcassa 6.33%
Cassa Geometri 5.04%
Fondazione CR Torino 3.36%
Compagnia San Paolo 3.35%
Fondazione CR Cuneo 2.52%
Fondazione CR Lucca 2.24%
Ente CR Firenze 2.23%
Fondazione Banco diSardegna 2.07%
Fondazione Padova e Rovigo 0.85%
Fondazione CR Forlì 0.85%
Total 100.00%
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ExternalControlling Entities
Governing Bodiesinvolved in the
Investment Process
Governance - Alignment of Interests with Investors
0SGR
Investment CommitteeBoard of Directors
FundsUnit-holders’ MeetingAdvisory CommitteeConflict Committee
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Fund I and Fund II – Investors Breakdown
Fund I + Fund II: investors breakdown for categories*Fund I + Fund II: investors breakdown for categories*
Total Asset under Management (Fund I + Fund II) equal to € 3.095 bn
* C Quotes not included
PensionFunds 21%
InsuranceCompanies 7%
Sovereign Funds /International
Pension Funds 8%
AssetManagers 18% Banks 17%
BankingFoundations
21%
InstitutionalInvestors 8%
Fund I: Investors breakdown for nationality*Fund I: Investors breakdown for nationality*
Europe20%
Italy 80%
Fund II: Investors breakdown for nationality*Fund II: Investors breakdown for nationality*
Europe22%
Italy 59%
Asia 19%
The success achieved by the First Fund allowed themanagement to attract new capital from European and Extra
European Countries for the Second Fund
Total of 59 Investors5 Investors with a Commitment higher than € 100 mlnAverage Sponsors’ Commitment : € 75 mlnAverage Investors’ (Non Sponsors) Commitment : € 40 mln
I II+
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Fund I and Fund II – Investment Portfolio
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Investments in 8 differentinfrastructure sectors
Aggregated Revenues€ 2.3 bn
Aggregated Ebitda€ 1.0 bn
Capex€ 400 mln
7,500employees
F2i Portfolio: Key Aggregated Data*
* Referred to FY 2014
12 OperatingCompanies
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The presence of F2i on the Italian territory
Higher concentration
F2i has an extensivepresence
throughout all theItalian territory
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High Quality Assets under Management in KeyInfrastructure Sectors
GasGas
Toll roadsToll roads
TelecomsTelecoms
AirportsAirports
WaterWater
RenewableEnergyRenewableEnergy
Company Fund I Fund II Highlights
2i Rete Gas 2nd largest player in Italy
SEA, Gesac, Sagat 1st largest airport network bypassengers
Metroweb 1st dark fiber provider in Italy
Alerion e HFV
Edison Energie Speciali
Solar: 2nd largest player in Italy
Wind: 2nd largest player in Italy
SIA 1st Italian operator and majorplayer in Europe
TRM 4th WTE plant in Italy
Mediterranea delle Acque Opportunity to consolidate ahighly fragmented market
Infracis Entry-point in a core infrastructuresector
IntangibleNetworksIntangibleNetworks
Waste toEnergyWaste toEnergy
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1.294
1.749
325
395
439
Capitale richiamato (1) Total Value (2)
1.59x1’619
2’582
Delivering 4-6% annual dividend yield and 12-15% expected gross returns (IRR) Distributions enabled the offset of management fees since 2010 Portfolio returns at 1.6x of the total amount drawn
Dividend yield
Gross
15.4%
10.9%
1.8%
5.1%
7.0%
5.8%
Net
4.8%
4.1%
4.5%
6.0%
4.9%
Year
2010
2011
2012
2013
2014
2015
Only fromdisposals
Drawn-downs for investments in portfolio DividendsFair Value of investments in portfolio Proceeds from disposals
(1) Drawn-downs (excluding transaction costs, management fees and other costs) for all the investments (in portfolio and disposed)(2) «Proceeds from disposals» includes the sale of 49% of F2i Aeroporti, as well as the sale of Interporto Rivalta Scrivia and Enel Stoccaggi
Total amount drawn (1)
As of 30/06/2015 (€ mln)
Strong track record of F2i I
Drawn-downs for investments disposed
Total Value (2)
I
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Management fees already covered by dividend stream from portfolio companies First dividend distribution to the investors in August 2015 Portfolio returns at 1.4x of the total amount drawn Fair Value of some participated companies still considered equal to the historical cost
Dividend yieldGross Net
3.2% n.a.
8.8% 3.9%
Year
2014
2015
F2i II: quick start and good results
II
314
416
37
Capitale richiamato (1) Total Value
1.44x314
452
As of 30/06/2015 (€ mln)
Drawn-downs for investments in portfolio Dividends
Total amount drawn (1) Total Value
(1) Drawn-downs (excluding transaction costs, management fees and other costs) for all the investments (in portfolio and disposed)
Fair value of investments in portfolio
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Well Positioned in Favorable Economic Environment
Political effort to privatize andconsolidate key infrastructure sectors,including transport, electricity, gas, wastemanagement, water and sewage
Stability of tariff systems granted byItalian Authority for Electricity, Gas andWater, highly regarded internationally
Current F2i portfolio asconsolidated platform for newadd-on investments in coreinfrastructure segments
Interesting investmentopportunities expected to comeup shortly in other coreinfrastructure sectors
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Deliver stableyield withinflation
protection
Value Approach in a Focused Investment Strategy
Selected Investments• High-quality brownfield
• Regulated or quasi-regulated sectors
• Cash positive assets
Portfolio Management• Consolidation of fragmented sectors
• Maximize efficiency, service quality,financial performance and growth
Active strategicguidance forvalue creation
F2i’s goals and objectivesF2i’s goals and objectives Undertaken activitiesUndertaken activities
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Active Portfolio Management: 2iReteGas
2009
2010
2011
2012
2013
2014Credit rating and bondre-financing
First acquisition2.2 million of clients
Second acquisition+0.6 million of clients
Third acquisition+1.0 million of clients
Merger and re-organisation of 3companies Value Creation Track Record (Fund I & Fund II)
Amount Drawn to Investors 469 mln
Dividends paid 289 mlnFair value @30/06/2015 764 mln
Value Creation to Date 584 mln (+ 124%)
ENEL Rete GasE.ON ReteG6 Rete Gas
2nd largest player in ItalyN. 3.8 million clients57,237 km pipeline network
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Active Portfolio Management: 2i Aeroporti2010
and 2011
2011and 2012
2013and 2014
2014and2015
2014
First acquisition (Naples)4.4 mln pax per year
Second acquisition (Milan– Qualified Minority)36 mln pax per year
Third acquisition (Turin)9.5 mln pax per year
Value Creation Track Record (Fund I & Fund II)
Amount Drawn to Investors 688 mln
Dividends paid 59 mlnSale of 49% of F2i Aeroporti 400 mlnFair Value @30/06/2015 573 mln
Value Creation to Date 344 mln (+ 50%)
Re-organisation of 3companies under F2iAeroporti and sale of 49%stake
Majority stake
Qualified minority stakeMinority stake
MXPBERLIN
BOL
TOR
NAP
First airport network inItalyCa. 50 mln pax per year
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F2i Strategy: Add Ons and New Investment Opportunities
Gas DistributionGas Distribution
Key DriversKey Drivers
Consolidation ofthe operators
Consolidation ofthe operators
InfrastructureDevelopmentInfrastructureDevelopment PrivatizationsPrivatizations Unbundling / Sector
RestructuringUnbundling / Sector
Restructuring
Integrated Water SystemIntegrated Water System
RenewablesRenewables
AirportsAirports
TLC Dark FiberTLC Dark Fiber
TLC Broadcasting TowersTLC Broadcasting Towers
Toll RoadsToll Roads
Local UtilitiesLocal Utilities
Healthcare: Infrastructures andServices
Healthcare: Infrastructures andServices
Payment ServicesPayment Services
New Sector of Interest for F2i