Webuild Spa · MIL:WBD

Webuild Spa — Salini Impregilo — Merger or Acquisition (June 2013)

43 slides from Webuild Spa's merger presentation, Jun 27, 2013

  1. Slide 1: Presentation of the Salini Impregilo Group - il Campione Nazionale

    Presentation Of the Salini Impregilo Group il Campione Nazionale 27 June 2013 1

  2. Slide 2: Disclaimer

    Disclaimer This document has been prepared by Salini S.p.A. (―Salini‖) and by Impregilo S.p.A. (―Impregilo‖) solely for use in the presentation of the Merger Project and the Salini Impregilo 2013-2016 Business Plan. This document does not constitute or form part of any offer or invitation to sell, o

  3. Slide 3: Combined Business Plan Targets

    Combined Business Plan Targets 27 June 2013 Presentazione Campione Nazionale 3

  4. Slide 4: Merger Rationale/Key drivers leading to integration

    Merger Rationale/Key drivers leading to integration  Diversify risk: each single project becomes smaller relative to a bigger backlog  Achieve cost advantages from scale economies in procurement, central costs Scale  Greater dimension to obtain access to and capabilities to execute larger project

  5. Slide 5: Combined Group strategy to 2016

    Combined Group strategy to 2016 Full focus on the Construction business, which has excellent growth potential Construction  Dismissal of non-core assets (plants and brownfield concessions) business  Selective bids for fast growing PPP / PPI greenfield projects as a way to win construction works (w

  6. Slide 6: Main assumptions

    Main assumptions  Revenues from existing construction backlog at YE 2012 (€19.9bn) based on detailed individual project budgets from Company management Revenues  New average order intake (€7.5 bn per year) above historical average of the past years (€6.1bn2 per year) driven by market growth, openi

  7. Slide 7: Business Plan targets for 2016

    Business Plan targets for 2016 Revenue Growth Revenues € 7.4 bn 16% (cagr) EBITDA ~ € 1 bn EBITDA Margin > 13.5% Presentazione Campione Nazionale EBIT >670 mn EBIT Margin > 9% New Order Intake Backlog ~ € 26 bn € 7.5 bn (yearly avg.) 27 June 2013 Construction Capex ~ € 100 mn ~€ 325mn Net Financial

  8. Slide 8: Combined Plan: principal financial data

    Combined Plan: principal financial data 7.4 4.1 2012A 2013P 2014P 2015P 2016P Revenues (€bn) ~670 ~1,000 Presentazione Campione Nazionale 274 71 2012A 2013P 2014P 2015P 2016P 2012A 2013P 2014P 2015P 2016P Ebitda (€mn) Ebit (€mn) >750 530 404 446 372 110 261 30 33 228 27 June 2013 179 (269) 2012A 201

  9. Slide 9: Identified synergies to be realized

    Identified synergies to be realized Full run-rate 2016 (€ mn / year) Impact 1 Head Office Ebitda 20 - 25 Procurement Procurement Presentazione Campione Nazionale 2 Ebitda Project related 35 - 40 3 Machinery & CAPEX >10 Equipment 4 Head Office Ebitda 15 - 20 Cost Avoidance 5 Greater utilization CAPEX

  10. Slide 10: Procurement synergies in detail: plan already being implemented

    Procurement synergies in detail: plan already being implemented with clear, achievable targets > 140 3 areas Procurement Impact in 2016 7 optimization «Families» (Yearly run-rate) levers Analyzed • Process optimization Headquarters Procurement ~ 45 € 20 - 25 Mn • Best country sourcing • Best supplie

  11. Slide 11: Overview of the Combined Group

    Overview of the Combined Group 2012 figures €19.9bn Italy USA 31% €9.6bn €10.3bn Mid East 2% 1% Italy USA Asia Middle Italy 4% Asia 17% East 3% 46% 7% 2% Presentazione Campione Nazionale EU Construction 5% EU Backlog 11% EU 18% Africa Latam 58% 33% Africa Latam 11% Africa 17% 34% Number of Employees

  12. Slide 12: Geographically very diversified revenue base

    Geographically very diversified revenue base 2012 Revenues by geographical area €4.1bn €1.8bn €2.3bn 19% 19% Presentazione Campione Nazionale 15% 8% 10% 23% 33% 16% 29% 22% 16% 43% 23% 24% 27 June 2013 Italy Europe (Excl. Italy) Americas Asia and Africa Middle East 50+ countries 12

  13. Slide 13: Solid well diversified backlog by segment and geography

    Solid well diversified backlog by segment and geography, which will drive future growth Other Railways 0.3 0.1 EU Roads €2.1bn 0.1 Subways Other Subways 1.6 0.1 0.1 Other Subways Roads 0.1 0.5 1.7 Roads Italy Railways USA €6.2bn Hydro and €0.3bn 0.1 3.5 DAM Hydro and Asia Subways DAM €0.9bn 1.0 0.1

  14. Slide 14: Increased dimension and scale with a global footprint

    Increased dimension and scale with a global footprint to compete for and execute mega-projects EU €2.1bn Asia €0.9bn PRESENCE1 IN USA Italy €6.2bn more than €0.3bn 50 countries Presentazione Campione Nazionale Presence Middle East Africa Salini €0.3bn €6.7bn Impregilo Latam €3.4bn Salini and Impregi

  15. Slide 15: Commercial offices located in more than 40 countries

    Salini and Impregilo commercial offices are located in more than 40 countries RomaniaBelarus Poland Ukraine Denmark Russia Albania Ireland Bulgaria Kazakhstan Switzerland Georgia Italy Presentazione Campione Nazionale Turkey Azerbaijan USA Algeria Greece Syria Morocco EAU Jordan Tunisia Qatar Libya

  16. Slide 16: Potential Target Market: €1 trillion, giving room to grow

    Potential Target Market: €1 trillion, giving room to grow Estimates of target segments (Road, Rail, Hydro) value, total '13-'17 (€ Bn) Total €bn ~216 ~129 ~83 ~151 ~77 ~361 ~45 ~1.062 Other LatAm ~11 Kazak.~3 Azerb.~2 Other E.EUR~5 Aust. ~4% Oman~8 Ecuador ~10 Georgia ~4 Ukraine ~5 Venezuela ~14 Pol

  17. Slide 17: 2012 backlog provides good visibility on future growth

    2012 backlog provides good visibility on future growth Construction €19.9bn ≈ €26bn TOTAL FORECAST Backlog REVENUES 2016 €5.6bn €7.4bn of Forecast Revenues 2012A – 2016P Construction (€bn) Revenues ANNUAL GROWTH 7.4 generated by 2012-2016 CAGR+16% 2012 backlog beyond 2016 16% CAGR 4.1 AVERAGE NEW ~

  18. Slide 18: Achievable growth, profitability targets based on solid backlog

    Achievable growth, profitability targets based on solid backlog, good competitive position and realisable synergies Revenues 2012 vs. 2016 7.4 (€bn)  The combined entity is REVENUE TARGET estimated to reach €7.4bn 4.1 revenues in 2016 including €7.4bn potential revenue synergies 2.3 of up to €900m

  19. Slide 19: Financial benchmarking vs main EU comparables

    Financial benchmarking vs main EU comparables Sales '12 Sales CAGR EBITDA margin EBIT margin ROCE1 (Bn€) '07-'12 (%) avg. '07-'12 (%) avg. '07-'12 (%) avg. '07-12 (%) Hochtief 25.5 9.2 5.4 2.1 10.5 Skanska 14.9 -0.1 4.2 3.2 19.3 Presentazione Campione Nazionale Strabag 13.0 5.6 5.6 2.4 8.6 Salini +

  20. Slide 20: Experienced Senior Management

    5. Experienced Senior Management Pietro Salini, Salini and Impregilo CEO  2012 – today: CEO Impregilo S.p.A.  2011- today: CEO Salini S.p.A.  2010 – today: CEO, Todini Costruzioni Generali S.p.A  1994 – today: CEO, SALINI COSTRUTTORI S.p.A.  Bachelor Degree in Economics, La Sapienza Univ. (1981

  21. Slide 21: Experienced Senior Management

    Experienced Senior Management Alessandro De Rosa, Salini CFO Rosario Fiumara, Impregilo CFO  2011-Today Salini, CFO  2006 Impregilo Central Director, Corporate Administration,  2005-11 Telespazio (Finmeccanica/Thales), CFO Finance, Control & Information Systems Division  2003-05 AMS/Finmeccanica

  22. Slide 22: Key financial policies & governance

    Key financial policies & governance Leverage in line Aim to materially deleverage the Combined Group from the current reported 4.6x (Gross w/peers Debt/EBITDA)1 to below 1.0x by 2016, thereby achieving leverage ratios better than industry peers Good Maintain strong liquidity with a buffer at 31 May

  23. Slide 23: The Merger

    The Merger 27 June 2013 Presentazione Campione Nazionale 23

  24. Slide 24: Governance Process & timing of the merger

    Governance Process & timing of the merger Key information Advisors for fairness opinion Financial Advisors charged with negotiating the exchange ratio Parties Involved Internal committees charged Independent Independent with the negotiation of the Presentazione Campione Nazionale Directors Directors

  25. Slide 25: The Merger: terms of the operation

    The Merger: terms of the operation Pre-Merger Shareholder Structure Exchange Rate Calculation Market The valuations were undertaken using: 88.83% 11.17%  Main valuation method: Discounted Cash Flow ("DCF"):  Control/Check method: peer market multiples Ordinary shares: 402,457,937 Saving shares: 1,

  26. Slide 26: Major Projects

    Major Projects 27 June 2013 Presentazione Campione Nazionale 26

  27. Slide 27: Campione Nazionale's Track Record

    Campione Nazionale‘s Track Record Circa 230 dams and hydroelectric plants for over 36,800 MW of total installed power Over 1,250 km of tunnels Presentazione Campione Nazionale ■ More than 6,700 km of railway lines ■ Circa 340 km of metro lines 27 June 2013 ■ More than 36,000 km of roads and highways

  28. Slide 28: HEP: Gibe III Ethiopia

    HEP: Gibe III Ethiopia Description of works: The Gibe III Hydropower Project (1870 MW) is presently under construction in Ethiopia, approximately 250 Km south-west of Addis Ababa. It is part of the Gibe-Omo Cascade project which includes Gilgel Gibe I (in operation), 420 MW Gibe II (in operation), G

  29. Slide 29: HEP: GERD Ethiopia

    HEP: GERD Ethiopia Description of works: The project site is located at approximately 500 km northwest of Addis Ababa, on the Blue Nile, in the Benishangul – Gumaz National Regional State. Grand Ethiopian Renaissance Dam will be the largest dam in Africa: 1800 m long, 170 m high with an overall volu

  30. Slide 30: HEP: Ulu Jelai - Malaysia

    HEP: Ulu Jelai - Malaysia Description of works: The project is located in the State of Pahang, approx. 140 km north of the capital city Kuala Lumpur. The main component of the project is the Susu Dam, built on Bertam river. The Dam, over 80 m high, will be constructed using the RCC (Roller-Compacted

  31. Slide 31: Roads & Highways: Kyzilorda & Alat Masalli

    Roads & Highways: Kyzilorda & Alat Masalli Presentazione Campione Nazionale  Kazakhstan-South West Road Project  Azerbaijan-Alat Masalli Road  Client: Committee for Roads of Ministry of Transport & Communications of the Republic of Kazakhstan  Client: MINISTRY OF TRANSPORT  Description of works

  32. Slide 32: Undergrounds: Copenhagen Cityringen Metro

    Undergrounds: Copenhagen Cityringen Metro Description of works: The Cityringen project will form a new circular line in the city center and will consist of two 17.4km tunnels and 17 new stations (two of which are transfer stations) all at 30 meters below ground level. Presentazione Campione Nazional

  33. Slide 33: Undergrounds: Metro B Line Rome

    Undergrounds: Metro B Line Rome Description of works: The project consists in the construction of approximately 3 km of railway, 3 stations, a secondary deposit to serve the B Line system, 2 interchanges and parking facilities Presentazione Campione Nazionale  Client: Roma Metropolitane  Project v

  34. Slide 34: Railways: High Speed Train Kosekoy Gebze Turkey

    Railways: High Speed Train Kosekoy Gebze Turkey Description of works: Rehabilitation and reconstruction of Köseköy-Gebze section of the Ankara-Istanbul High Speed Rail. Works include reconstruction of 56 km of double track railway, construction of infrastructure and superstructure of railway and ele

  35. Slide 35: Main awarded projects: Qatar

    Main awarded projects: Qatar Red Line North Metro in Doha  Contract period: 2013-2018  Project description: The project will extend over a distance of approximately 13 km northward from Mushaireb station, with the  Impregilo stake: 41.25% construction of 7 new underground stations. Specifically,

  36. Slide 36: Main ongoing projects: Panama Canal

    Main ongoing projects: Panama Canal Panama Canal – design and construction of the Third set of Locks  Contract period: 2009–2014  Value: USD3.22bn  Consortium: Grupo Unidos Por El Canal S.A.  Partners: Sacyr Vallehermoso (Spain), Jan de Nul (Belgium) and Constructora Urbana S.A. (Panama)  Progr

  37. Slide 37: Terzo Valico: Milan-Genoa High Speed Railway

    Terzo Valico: Milan-Genoa High Speed Railway Presentazione Campione Nazionale Impregilo owns 64% (as of 14 June 2013) and is a leader of the General Contractor COCIV, responsible for the construction of the so-called Terzo Valico dei Giovi Milan-Genoa high-speed/capacity railway line. The total valu

  38. Slide 38: Main ongoing projects: Venezuela

    Main ongoing projects: Venezuela Tocoma Dam - Rio Caroni Hydroelectric project  Contract period: 2007-2014  Impregilo stake: 40%  Partners: Odebrecht (Brazil), Vinccler (Venezuela)  Basic Value: USD2,826m (including further addendums)  Progress: 96.6% completed as of 31 Dec. ‗12 Presentazione C

  39. Slide 39: Main ongoing projects: Venezuela - Central Region Rail Network System

    Main ongoing projects: Venezuela - Central Region Rail Network System Puerto Cabello – La Encrucijada  Contract period: 2002-2016  Consortium: Grupo Contuy (Astaldi, Ghella, Impregilo: 33.3% each)  Basic Value: €1,970m (Impregilo stake including further addendums)  Progress: 58.2% as of 31 Decem

  40. Slide 40: Main ongoing projects: Colombia

    Main ongoing projects: Colombia Autostrada Ruta del Sol  Contract period: 2011 - 2036 (6years  Project description: The concession, granted to a construction and 19 years for the concession) group led by Impregilo, provides for the modernization, extension to four lanes and  Consortium: 40% Impre

  41. Slide 41: Main ongoing projects: USA

    Main ongoing projects: USA Hydraulic intake tunnel (Lake Mead - Las Vegas, Nevada)  Contract period: 2008 - 2014  Project description: the project is to increase potable and domestic water supply to the Las  Consortium: 30% Impregilo Vegas urban area by approximately 4.5 mn c.m./ day of potable w

  42. Slide 42: Main ongoing projects: Roads and Motorways in Italy

    Main ongoing projects: Roads and Motorways in Italy External Ring Road of Milan  Contract period: 2009-2014  Project description: construction of a large section of the new ring road, (about 25.6 km)  Concession company: Impregilo 15.50%, across the provinces of Milan and Lodi (about 7.4 T.E.M. S

  43. Slide 43: Main ongoing projects: Lombardy Pedemontana Motorway - Italy

    Main ongoing projects: Lombardy ―Pedemontana‖ Motorway - Italy  Contract period: 2009 - 2014  Project description: Impregilo is the general contractor for the engineering and construction of the first lot of the Lombardy  Impregilo stake: 47% ―Pedemontana‖ motorway  Partners: Astaldi (24%), Pizz

Salini Impregilo — Merger or Acquisition (June 2013) on 6ix