GRANDI NAVI VELOCI E UROMOBILIAR. Initial Public Offering. S.I.M. S.p.A ITALY / MARITIME TRANSPORTATION REUTER: N.A. N 111

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1 Initial Public Offering 1 GRANDI NAVI VELOCI ITALY / MARITIME TRANSPORTATION REUTER: N.A. N 111 G S T G F T A I E UROMOBILIAR E

2 T R I I T Sales Net chg EPS chg EPS. chg CFPS CFPS ROE ROCE profit Adj Adj mn mn cent cent cent cent 1997pf % % % % 10.7% % % % % 13.5% 1999E % % % % 12.2% 2000E % % % % 8.7% 2001E % % % % 12.3% N of shares after IPO 65.0 mn Free Float (E) 30-32% 2

3 INVESTMENT SUMMARY...THE FLEET......THE TOP-QUALITY SERVICE... 3

4 ...THE EXPANSION PLAN......THE ROUTES......THE MARKET......GNV'S MAIN COMPETITOR: TIRRENIA... 4

5 ...THE EXPECTED STRONG IMPROVEMENT OF THE OPERATING PERFORMANCE......SEASONALITY INTERIM RESULTS SUMMER MONTHS... 5

6 ...LABOUR COST: AN OPPORTUNITY......VERY LOW TAX RATE......COMPETITORS... GNV: MAIN FIGURES ( mn) 1997pf % 1998 % 1999E % 2000E % 2001E % 2002E % Revenues Incr. % 12% 20% 31% 20% 6% 8% EBITDA Incr. % 5% 24% 13% 48% 31% 25% EBIT Incr. % 3% 36% -5% 60% 41% 23% Pre Tax Inc Incr. % -6% 28% -9% 58% 47% 20% Net Income Incr. % -10% 33% -9% 58% 44% 13% Cash Flow Cap. Exp Net Fin. Pos D/E ROE 18% 20% 11% 12% 16% 16% ROCE 11% 13% 12% 9% 12% 10% 6

7 1. INTRODUCTION: THE COMPANY GRIMALDI FAMILY CURRENT GROUP STRUCTURE GRANDI TRAGHETTI DI NAVIGAZIONE S.p.A. International transportation (containers & commercial vehicles) Transportation (passengers & commercial vehicles) 83.8% GRANDI NAVI VELOCI S.p.A International transportation (containers & commercial vehicles) 95% GILNAVI SOCIETA' DI NAVIGAZIONE S.r.l. 50% Logistics and port operations 50% CONSORZIO GRIMALDI GROUP 2. A HISTORY OF GROWTH 7

8 GNV: STRONG REVENUES GROWTH ( mn) E Source: Company's data and Euromobiliare SIM estimates GNV: NUMBER OF CRUISE FERRIES USED 1999E Source: Company's data GNV: NUMBER OF LINES 1999E Livorno - Palermo Genoa-Olbia Genoa - Barcelona Genoa - Porto Torres Genoa - Palermo Source: Company's data

9 3. THE FLEET GNV'S FLEET: A QUICK DESCRIPTION Independent Gross Commercial Net load CRUISE FERRY Const. Valuation Tonnage Length Speed Passengers load capacity capacity Crew Yr. mn (t) (mt) (knots) (no.) (mt) (t) (no.) MAJESTIC 1993 OWNED , ,650 2,276 7, SPLENDID 1994 OWNED , ,000 2,862 8, FANTASTIC 1996 OWNED , ,033 2,276 7, EXCELLENT 1998 TIME CHARTER , ,253 2,516 7, EXCELSIOR 1999 OWNED , ,253 2,516 7, VICTORY 1989 LEASED 27, ,260 6, FRECCIA BLU* 1970 TIME CHARTER 13, ,182 6, TOTAL 226,306 11,354 16,887 50, * Ferry Boat Source: Company's data 9

10 3.1 OWNERSHIP VS TIME CHARTER OWNERSHIP VS TIME CHARTER COSTS 40-19% Source: Company's data Ships Owned Time charter

11 4. GROWTH STRATEGY - CAPEX PROJECTIONS GNV: EXPANSION OF OWNED FLEET Excelsior (May) Fantastic (June) Excellent (June) 3 New cruise ferry 2Q 1 2 New cruise ferry 2Q Source: Company's data Ship owned Time charter or leased ship 11

12 GNV: CRUISE FERRIES UTILISATION (NUMBER OF MONTHS' UTILISATION PER YEAR) Yr. Const Majestic Splendid * Fantastic Excellent Excelsior Freccia Blu Victory New Ship A New Ship B Franz Tot. Month # ships Owned Time charter Leased Source: Company's data * restyling to increase the length of the ship 12

13 GNV: INVESTMENT PROGRAM ( mn) E 2000E 2001E 2002E 2003E Source: Company's data Majestic Splendid Fantastic Excelsior Excellent 2 New Ships 13

14 5. THE ROUTES GNV: THE ROUTES Routes Ge-Pa Li-Pa Ge-Barca Ge-P.toTorres Ge-Olbia TOTAL Start-up Frequency Daily 3 times a week Pax: 3 x a week Daily Daily Comm. working days Period Full year Full year Full year from 2H99 FY Summeralso commercial only pax Hours # crusie ferries VOLUMES (no.) TOTAL Passengers (no.) 236,800 10,700 11, , , ,400 Cars (no.) 81,700 4,200 1,800 39,600 43, ,300 Com.Vehicles (mt.) 800, ,500 37, ,007, REVENUES* ( mn) TOTAL Passengers Nr. Cars Com.Vehicles TOTAL % on total revenues 61% 8% 2% 11% 11% * Do not include cruises and other revenues ( Source: Company's data 14

15 5.1 GENOA-PALERMO- GENOA 5.2 LIVORNO - PALERMO-LIVORNO 5.3 SARDINIAN ROUTES 15

16 GENOA - PORTOTORRES - GENOA THE GENOA - PORTO TORRES IS THE MOST IMPORTANT SARDINIAN ROUTE PAX (nr.) Ge./Torres 24% Others 8% Civ./G. Aranci 10% Liv./Olbia 8% Liv./Golfo Aranci 8% Ge./Olbia 9% Ge./Cagliari 23% Civ./Cagliari 10% COMMERCIAL VEHICLE ( linear meters) Ge./Torres 24% Others 6% Civ./G. Aranci 8% Liv.-Piombino/Olbia 23% Ge./Olbia 6% Ge./Cagliari 8% Civ./Cagliari 12% Liv./Cagliari 7% Civ./Arbatax 6% Source: Conto Nazionale Trasporti

17 GENOA - OLBIA - GENOA 5.4. GENOA - BARCELONA - GENOA 17

18 6. MARKET DEREGULATION THE DEREGULATED MARKET: COMMERCIAL SEGMENT GREECE 11% FRANCE 2% SPAIN 31% ITALY 54% PORTUGAL 2% Source: Confitarma - Arthur Andersen - Dec THE DEREGULATED MARKET: PASSENGERS PORTUGAL 1% SPAIN 15% FRANCE 3% Source: Confitarma - Arthur Andersen - Dec ITALY 81% 18

19 19

20 6.1 PRESENT COMPETITORS 6.2 TIRRENIA 20

21 6.3 MOBY LINES 21

22 6.4 SARDINIA FERRIES 6.5 GREEK OPERATORS 22

23 6.5.1 ATTICA MINOAN 23

24 6.5.3 STRINTZIS 6.6 MARGINAL OPERATORS 24

25 7. PASSENGER TRANSPORT 7.1 THE MARKET PASSENGERS: THE ITALIAN MARKET IN THE MEDITERRANEAN Port Links No. pax ('000) % Palermo Genoa-Livorno-Naples % Olbia Genoa-Livorno-Civitavecchia-Piombino-La Spezia 1,832 39% Golfo Aranci Civitavecchia-Livorno % Porto Torres Genoa % Cagliari Genova-Civitavecchia-Napoli-Palermo % TOTAL 4, % Source: Company's data based on Conto Nazionale Trasporti's data GNV presence 25

26 PAX TRANSPORTATION IN THE WESTERN MEDITERRANEAN (4,7 mn in 1997) Sardinia Ferries 10% Others 8% Moby Lines 7% GNV 8% Tirrenia 67% Source: Company's data based on Conto Nazionale Trasporti's data SICILY ROUTES SICILY: PAX TRANSPORTATION (0.7 mn in 1997) Others 5% GNV 34% Tirrenia 61% Source: Company's data based on Conto Nazionale Trasporti's data 26

27 7.1.2 SARDINIA ROUTES SARDINIA: PAX TRANSPORTATION (4 mn in 1997) Lloyd Sardegna 2% GNV 3% Moby Lines 8% FF.SS. 6% Sardinia Ferries 12% Tirrenia 69% Source: Company's data based on Conto Nazionale Trasporti's data 7.2 DISTRIBUTION 27

28 7.3 SEASONALITY 7.4 PRICE POLICY 28

29 7.5 THE OBJECTIVES 8. TRASPORTATION OF COMMERCIAL VEHICLES 8.1 THE MARKET 29

30 8.1.1 SICILY ROUTES COMMERCIAL VEHICLES (TYRRHENIAN SEA) - MKT SHARE BASED ON LINEAR METERS CARRIED TRANSPORTED SICILIAN MARKET: 2.1 mn linear meters CO.NA.TIR. 7% Tirrenia 47% GNV 46% Source: Company's data based on Conto Nazionale Trasporti's data SARDINIA ROUTES COMMERCIAL VEHICLES (TYRRHENIAN SEA) - MARKET SHARE BASED ON LINEAR METERS CARRIED SARDINIAN MARKET: 7.2 mn linear meters Italian Railways 8% Tarros 3% Marsea 3% Others 6% Lloyd Sardegna 23% Tirrenia 57% 30 Source: Company's data based on Conto Nazionale Trasporti's data

31 8.2 DISTRIBUTION 8.3 SEASONALITY 8.4 PRICE POLICY 8.5 THE OBJECTIVES 31

32 9. THE LOAD FACTOR 1998 PASSENGERS LOAD FACTOR (NO. OF PASSENGERS) Genoa- Genoa- Genoa- Genoa- Livorno- Palermo Poto Torres Olbia Barcelona Palermo Majestic 38% % Splendid 20% Fantastic 10% 33% - 6% - Excellent 8% - 31% - - AVG 19% 1998 COMMERCIAL VEHICLES LOAD FACTOR (LINEAR METERS) Genova-Palermo Genova-Barcelona Livorno-Palermo Majestic 58% - 52% Splendid 66% - - Fantastic 72% 28% - Excellent 77% - - AVG 68% Source: Company's data 32

33 10. CRUISES 11. OTHER REVENUES INTERIM RESULTS 33

34 REVENUES PER SEGMENT ( mn) Source: Company's data 30/06/ /06/1998 Cruises Passengers Commercial Vehicle 1H99 REVENUES PER ROUTES (TOTAL 40.6 mn) Genova / Barcellona / Genova 19% Cruises and others 3% Livorno / Palermo / Livorno 17% Source: Company's data Genova / Olbia / Genova 2% Genova / Porto Torres / Genova 2% Genova / Palermo / Genova 57% 1H99 EBIT BREAKDOWN Genova - Palermo Livorno - Palermo Genoa - Barcelona Genoa - P.Torres Genoa - Olbia Others 34 Source: Company's data

35 INTERIM RESULTS ( mn) 1H98 1H99 EXCL. GE-BARCA GE-BARCA ALONE* 31-Aug-99 Revenues Change% 28% 3% 183% Other revenues Value of production Change% 31% 7% 185% Purchases Other operating costs Added value production Change% -24% 43% 353% Labour Cost EBITDA Change% n.m. 15% 647% Depreciation, Amortisation & Provisions EBIT Change% n.m. n.m. n.m. Financial revenues (charges) Extraordinary Items Pre Tax Profit Change% n.m. n.m. n.m. Taxes Net Profit Change% n.m. n.m. n.m. Adjusted Net Profit Change% n.m. n.m. n.m. Cash-flow Change% n.m. 105% 1416% Adjusted Cash-Flow Change% n.m. 57% 969% Capital expenditure Other net investments Net financial position Debt/equity Actual tax rate n.m. n.m. 8% * excluding some common costs not directly attributable to the routes 12.1 INITIAL RESULTS OF THE NEW GENOA- BARCELONA ROUTE 35

36 GENOA-BARCELONA ROUTE VOLUME TRAFFIC ) ' ( t ) lm ' ( Q98 1Q99 2Q99 3Q99 Source: Company's data Pax Commercial Vehicle 0 36

37 12.2 THE REMAINING ROUTES 12.3 RESULTS AS AT AUGUST

38 12.4 VOLUME AS AT SEPTEMBER TRAFFIC TREND ('000) Pax Auto Commercial Vehicle Cars Drivers Sep-98 Sep-99 Sep-98 Sep-99 Sep-98 Sep-99 Sep-98 Sep-99 Sep-98 Sep-99 Genova-Palermo Inc. % 2.6% 5.8% 2.8% 44.4% 2.4% Livorno-Palermo Inc. % 263.3% 273.5% 59.4% 23.8% 185.3% Genova-Barcellona being started September 1998 % change are not meaningful Genova-P.to Torres Inc. % 25.5% 24.7% nm nm nm Genova-Olbia Inc. % 11.0% 10.5% nm nm nm Total ,

39 13. ESTIMATES NUMBER OF CROSSING 1998 % 1999E % 2000E % 2001E % 2002E % Genova-Palermo-Genova % % % % % Livorno-Palermo-Livorno % % % % % Genova-Barcellona-Genova 84 7% % % % % Genova-P.to Torres-Genova % % % % % Genova-Olbia-Genova % 172 9% 172 8% 172 8% 172 8% TOTAL 1, % 1, % 2, % 2, % 2, % % CHANGE 51% 17% 0% 0% Source: Company's data 39

40 REVENUES PER LINE TREND ( mn) E 2000E 2001E 2002E 2003E Source: Euromobiliare SIM estimates Genova-Palermo-Genova Livorno-Palermo-Livorno Genova-Barcellona-Genova Genova-P.to Torres-Genova Genova-Olbia-Genova Cruises Others 40

41 GNV: REVENUES BREAKDOWN LINES 1998 % 1999E % 2000E % 2001E % 2002E % REVENUES per LINE ( mn) Genova-Palermo-Genova % % % % % Livorno-Palermo-Livorno 7.6 8% % % % % Genova-Barcellona-Genova 2.1 2% % % % % Genova-P.to Torres-Genova % % % % % Genova-Olbia-Genova % % % % % Crociere 1.9 2% 3.2 3% 3.5 2% 2.8 2% 3.0 2% Others 4.9 5% 6.5 5% 8.3 6% 8.7 5% 9.6 6% TOTAL % CHANGE 20% 31% 20% 6% 8% AVG CAPACITY ( 000) COM PAX COM PAX COM PAX COM PAX COM PAX Genova-Palermo-Genova 1,529 1,292 1,529 1,292 1,457 1,231 1,457 1,231 1,457 1,231 Livorno-Palermo-Livorno Genova-Barcellona-Genova , , , , Genova-P.to Torres-Genova ,621 1,370 1,621 1,370 1,621 1,370 Genova-Olbia-Genova TOTAL 3,000 2,367 4,476 3,269 5,233 3,905 5,233 3,905 5,360 4,229 % CHANGE 49% 38% 17% 19% 0% 0% 2% 8% LOAD FACTOR COM PAX COM PAX COM PAX COM PAX COM PAX Genova-Palermo-Genova 52% 18% 52% 18% 54% 19% 55% 19% 56% 19% Livorno-Palermo-Livorno 37% 4% 33% 4% 35% 6% 37% 7% 38% 8% Genova-Barcellona-Genova 20% 12% 25% 24% 30% 31% 36% 33% 34% 27% Genova-P.to Torres-Genova 0% 33% 12% 25% 14% 22% 18% 24% 19% 26% Genova-Olbia-Genova 0% 34% 8% 35% 15% 37% 20% 37% 14% 39% TOTAL 34% 21% 32% 20% 31% 22% 35% 23% 35% 23% TOTAL VOLUMES TRANSPORTED ( 000) COM PAX COM PAX COM PAX COM PAX COM PAX Genova-Palermo-Genova Livorno-Palermo-Livorno Genova-Barcellona-Genova Genova-P.to Torres-Genova Genova-Olbia-Genova TOTAL 1, , , , , % CHANGE 41% 35% 15% 28% 11% 5% 2% 11% VOLUMES GROWTH COM PAX COM PAX COM PAX COM PAX COM PAX Genova-Palermo-Genova 0% 0% -1% 0% 2% 0% 2% 0% Livorno-Palermo-Livorno 42% 60% 6% 52% 6% 17% 3% 15% Genova-Barcellona-Genova 581% 984% 21% 30% 20% 6% 6% 34% Genova-P.to Torres-Genova 48% 136% 78% 29% 9% 6% 8% Genova-Olbia-Genova 3% 0% 6% 0% -1% 0% 5% *COM: commercial vehicle; PAX: passengers Source. Euromobiliare SIM estimates 41

42 GNV: EXPECTED CONTRIBUTION CASH INFLOWS ( mn) E 2000E 2001E 20002E 2003E beyond Source: Company data contribution of capital contributions for operating expenses 42

43 GNV: OTHER OPERATING COSTS ( mn) pf E 2000E 2001E 2002E Source: Euromobiliare SIM estimates Maintenance Rents Services

44 44

45 45

46 46

47 PROFIT AND LOSS ACCOUNT ( mn) 1998 % 1999E % 2000E % 2001E % 2002E % Revenues Change% 20% 31% 20% 6% 8% Other revenues Value of production Change% 21% 31% 19% 6% 7% Purchases Other operating costs Added value production Change% 18% 26% 41% 24% 23% Labour Cost EBITDA Change% 24% 13% 48% 31% 25% Depreciation, Amortisation & Provisions EBIT Change% 36% -5% 60% 41% 23% Financial revenues (charges) Extraordinary Items Pre Tax Profit Change% 28% -9% 58% 47% 20% Taxes Net Profit Change% 33% -9% 58% 44% 13% Adjusted Net Profit Change% 37% -10% 63% 47% 20% Cash-flow Change% 19% 15% 44% 30% 19% Adjusted Cash-Flow Change% 21% 17% 46% 31% 24% FINANCIAL AND OTHER FIGURES ( mn) Dividends (total amount) Pay-out ratio 26% 30% 30% 30% 30% Capital expenditure Other net investments Net financial position Debt/equity Actual tax rate 8% 7% 7% 9% 15% Net working capital

48 RESULTS INCLUDING TAX BENEFITS FOR LABOUR COSTS ( mn) 1999E 2000E 2001E EBIT Change% 13% 55% 36% Net Profit Change% 16% 51% 39% Cash flow Change% 31% 42% 28% % change vs estimates including full labour cost EBIT 19.5% 15.7% 12.3% Net Profit 27.3% 21.5% 16.7% Cash flow 13.7% 11.8% 10.2% 14. COMPARABLE COMPANIES MULTIPLE COMPARISON* 1999E 2000E ATTICA (listed in 1993) MINOAN (listed in 1998) STRINTZIS (listed in 1994) AVERAGE * Anek multiples not available (it was listed at the beginning of 1999) Source : Bloomberg 48

49 EXISTING OWNED CRUISE FERRIES COMPARISON GNV Passenger capacity Com. vehicle capacity Speed MAJESTIC 1,650 2, SPLENDID 2,000 2, FANTASTIC 2,033 2, EXCELSIOR 2,253 2, ATTICA SUPERFAST I & II 1, SUPERFAST III & IV 1,400 1, MINOAN NUMBER OF CARS IKARUS 1,500 1, PASIPHAE 1,500 1, ARETOUSA 1,500 1, (1) = number of cars ATTICA Source: Bloomberg 49

50 15. CONCLUSIONS 50

51 51

52 16. SWOT 52

53 53

54 INDEX INVESTMENT SUMMARY... pag INTRODUCTION: THE COMPANY... pag A HISTORY OF GROWTH... pag THE FLEET... pag OWNERSHIP VS TIME CHARTER... pag GROWTH STRATEGY- CAPEX PROJECTIONS... pag THE ROUTES... pag GENOA-PALERMO-GENOA... pag LIVORNO-PALERMO-LIVORNO... pag SARDINIAN ROUTES... pag GENOA-BARCELONA-GENOA... pag MARKET DEREGULATION... pag PRESENT COMPETITORS... pag TIRRENIA... pag MOBY LINES... pag SARDINIA FERRIES... pag GREEK OPERATORS... pag MARGINAL OPERATORS... pag PASSENGERS TRANSPORTATION... pag THE MARKET... pag DISTRIBUTION... pag SEASONALITY... pag PRICE POLICY... pag THE OBJECTIVES... pag TRANSPORTATION OF COMMERCIAL VEHICLES... pag THE MARKET... pag DISTRIBUTION... pag SEASONALITY... pag PRICE POLICY... pag THE OBJECTIVES... pag THE LOAD FACTOR... pag CRUISES... pag OTHER REVENUES... pag INTERIM RESULTS... pag INITIAL RESULTS OF THE NEW GENOA-BARCELONA ROUTE... pag THE REMAINING ROUTES... pag RESULTS AS AT AUGUST 31, pag VOLUME AS AT SEPTEMBER 30, pag ESTIMATES... pag COMPARABLE COMPANIES... pag CONCLUSIONS... pag SWOT... pag