CDP Equity at a glance CDP Equity is part of the Cassa depositi e prestiti Group, which is controlled by the Italian Ministry of Economy and Finance and is active in supporting the economy and the infrastructural development of the country CDP GROUP 100% CDP Equity is a holding company with a capital of 3.5B Invests in Italian companies of relevant national interest with a long-term perspective Acquires mainly minority interests in companies with sound finances and solid growth prospects Participates in its portfolio companies with capital for growth and requires active governance rights CDP 97.1% FINTECNA 2.9% Provides patient capital to listed companies or to companies aiming to list on the stock exchange in the medium term 1
Sectors of relevant national interest Defence Security Infrastructure Transports Communications Energy Financial services and insurance High tech and research Public services Tourism and hospitality Food and food distribution Management of cultural and artistic heritage 2
Portfolio Companies Investment Industry CDPE stake % Investment ( M) Biopharmaceuticals 5 th in the world Energy and related equipment 4 th in the world Production of components for the energy industry Among global leading players in valves for oil&gas applications Infrastructures and IT for the financial sector Among the first five players in Europe Engineering and mechanics for construction and energy 3 rd in the world Food processing and distribution 2 nd in Europe in beef processing Hotel management and tourism 3 rd in the 5-stars hotels field in Italy Engineering. constructions and drilling for the energy industry 1 st in the world in the E&C offshore field Infrastructures and telecommunications Leader in the development of a fiber optic network in Italy Agricolture and farming 1 st in the agri-tech industry in Italy and leader in Europe Hotel management and tourism Leading group in the 3 & 4-stars hotels field in Italy 25.1% 100 59.9% 493 49.5% 151 34.6% 170 16.8% 101 28.4% 165 23.0% 60 ( 82) 12.5% 903 50.0% 359 20.4% 50 46.0% 20 Total Investment 2,594 3
CDP Group: how and why tourism Investment Focus Rationale Direct equity investments in hospitality management operators Promote growth through industry consolidation Build scale to have greater global reach and improve attractiveness to foreign tourists Promote a specialized approach to the management of hotel companies Attract domestic and foreign private investors Fondo Investimento Turismo - FIT Alternative real estate fund focused on tourism, hospitality and leisure Requalify and develop Italian hospitality structures Develop Italian touristic real estate through separation of real estate ownership and hotel management Attract domestic and foreign private investors Capital ( mln) 102 Invested Available Invested 250 92 capital resources capital Tourism is a key industry for the Italian economy, with large untapped growth potential. Italian tourism operators are typically small / medium companies, run as family businesses: lack of scale and global reach hinders quality improvement and foreign tourists attraction, while a low degree of separation between real estate ownership and hotel management acts as an obstacle for growth 4
CDP Equity s investments in tourism Company overview Rationale RF Hotels is among world leaders in 5-star hotel management. Italy with 3 hotels in Rome, Florence and Sicily ranks 1 st by revenue in the RFH portfolio, accounting for over 30% of group revenues Help building a hotel management company specialized in luxury hospitality segment with a strong presence in Italy, able to promote Italian luxury destinations worldwide TH Resorts is one of the leading tourist resort and village operators in Italy. TH manages a portfolio counting 19 structures in the country (of which 8 in Southern Italy), with ca. 3,500 rooms and ca. 9,500 beds Supporting growth with the aim of creating a market leader in sea and ski resort hospitality Strong proprietary pipeline, with 10 new openings expected in 5 years Investment Description In March 2015, CDP Equity invested GBP 60 mln ( 82 In August 2017, CDP Equity invested 20 mln via capital mln) via capital increase for a stake of 23% increase for a stake of ca. 46% Key Indicators Hotels: 11 (3 in Italy). Opening of an additional hotel in Rome expected in 2018 Rooms: 2,000 (o.w. 380 in Italy) Employees: 2,200 (o.w. ca. 600 in Italy) Hotels: 19 (all in Italy) Rooms: ca. 3,500 Employees: over 5,000 people during peak season (both direct and indirect employees), expected to increase to 8,500 in 5 years 5
Where we are and where we want to be Hotel Cristallo Hotel & Residence Planibel Where we are Hotel Greif Hotel Grifone Hotel Majestic Dolomiti Hotel Regina e Fassa Hotel Relais des Alpes Where else we want to be Milan Venice Turin Bologna Hotel Monboso Green Park Resort Hotel Savoy Villaggio Ortano Mare Villaggio Maddalena RF Hotels TH Resorts Hotel De Russie Villaggio Camerota Casa Leonori Villaggio Porto Ada Villaggio Capo Calavà Verdura Resort Villaggio Tremiti Villaggio Ti Blu Villaggio Baia degli Achei Villaggio Le Castella Naples Siracusa 6
Art & culture: a possible business model for growth Hotel Industry Separation between real estate ownership and hotel management ignited growth of the hotel industry and significant value creation PropCo (Real Estate owner) Cultural heritage assets The same model as the hotel industry could be applied to cultural heritage assets to untap unexpressed growth potential Cultural heritage asset (State owned) Management Agreement or Rental Agreement Licensing Agreement («Concessione») OpCo Management Company Licensing of cultural heritage assets to specialized management operators can help promote the assets and increase the inflow of domestic and foreign visitors 7
www.cdpequity.it Milan Via San Marco 21 A, 20121 Telephone +39 02 4674.4333 Fax +39 02 4674.4346 we promote the future 8