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
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 80 10.0-10% 19.2-10% 16.8-8% 33.6 31.2 18% 10.7% 1998 96 13.3 33% 25.5 33% 23.0 37% 40.1 37.6 20% 13.5% 1999E 126 12.1-9% 18.7-27% 16.8-27% 37.3 35.4 11% 12.2% 2000E 151 19.1 58% 29.4 57% 27.1 61% 53.4 51.1 12% 8.7% 2001E 160 27.6 44% 42.4 44% 39.9 47% 69.5 67.0 16% 12.3% N of shares after IPO 65.0 mn Free Float (E) 30-32% 2
INVESTMENT SUMMARY...THE FLEET......THE TOP-QUALITY SERVICE... 3
...THE EXPANSION PLAN......THE ROUTES......THE MARKET......GNV'S MAIN COMPETITOR: TIRRENIA... 4
...THE EXPECTED STRONG IMPROVEMENT OF THE OPERATING PERFORMANCE......SEASONALITY......1999 INTERIM RESULTS......1999 SUMMER MONTHS... 5
...LABOUR COST: AN OPPORTUNITY......VERY LOW TAX RATE......COMPETITORS... GNV: MAIN FIGURES ( mn) 1997pf % 1998 % 1999E % 2000E % 2001E % 2002E % Revenues 80 96 126 151 160 173 Incr. % 12% 20% 31% 20% 6% 8% EBITDA 21 26.4 26 27.3 30 23.6 44 29.2 58 36.0 72 41.6 Incr. % 5% 24% 13% 48% 31% 25% EBIT 14 17.1 19 19.4 18 14.1 28 18.8 40 24.9 49 28.3 Incr. % 3% 36% -5% 60% 41% 23% Pre Tax Inc. 11 14.0 14 15.0 13 10.4 21 13.7 30 19.1 37 21.2 Incr. % -6% 28% -9% 58% 47% 20% Net Income 10 12.5 13 13.8 12 9.6 19 12.7 28 17.2 31 18.0 Incr. % -10% 33% -9% 58% 44% 13% Cash Flow 17 21 24 35 45 54 Cap. Exp. 6 12 189 19 143 72 Net Fin. Pos. -68-65 -156-134 -233-254 D/E 1.1 0.9 1.1 0.8 1.3 1.3 ROE 18% 20% 11% 12% 16% 16% ROCE 11% 13% 12% 9% 12% 10% 6
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
GNV: STRONG REVENUES GROWTH ( mn) 140.0 125.9 120.0 100.0 80.6 96.1 80.0 71.8 60.0 52.2 40.0 32.5 20.0 9.3 0.0 1993 1994 1995 1996 1997 1998 1999E Source: Company's data and Euromobiliare SIM estimates GNV: NUMBER OF CRUISE FERRIES USED 1999E 7 1998 4 1997 3 1996 3 1995 2 1994 2 1993 1 0 1 2 3 4 5 6 7 8 Source: Company's data GNV: NUMBER OF LINES 1999E 5 1998 5 1997 3 Livorno - Palermo Genoa-Olbia Genoa - Barcelona 1996 2 1995 2 1994 2 Genoa - Porto Torres 1993 1 Genoa - Palermo 0 1 2 3 4 5 6 8 Source: Company's data
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 56.8 32,746 188 22 1,650 2,276 7,150 100 SPLENDID 1994 OWNED 80.1 39,109 214 22 2,000 2,862 8,300 100 FANTASTIC 1996 OWNED 85.2 35,186 188 23 2,033 2,276 7,150 100 EXCELLENT 1998 TIME CHARTER 108.5 39,500 202 24 2,253 2,516 7,300 100 EXCELSIOR 1999 OWNED 111.0 39,500 202 24 2,253 2,516 7,300 100 VICTORY 1989 LEASED 27,000 187 23 950 2,260 6,737 50 FRECCIA BLU* 1970 TIME CHARTER 13,265 165 20 215 2,182 6,500 43 TOTAL 226,306 11,354 16,887 50,437 593 * Ferry Boat Source: Company's data 9
3.1 OWNERSHIP VS TIME CHARTER OWNERSHIP VS TIME CHARTER COSTS 40-19% 35 30 6 25 20 8 32 15 9 10 5 3 5 1 5 10 0 Source: Company's data Ships Owned Time charter
4. GROWTH STRATEGY - CAPEX PROJECTIONS GNV: EXPANSION OF OWNED FLEET 9 8 7 6 5 Excelsior (May) Fantastic (June) Excellent (June) 3 New cruise ferry 2Q 1 2 New cruise ferry 2Q 1 4 3 2 1 2 4 5 6 7 1 0 1 2 2 2 1993 1994 1996 1998 1999 2001 2002 2003 Source: Company's data Ship owned Time charter or leased ship 11
GNV: CRUISE FERRIES UTILISATION (NUMBER OF MONTHS' UTILISATION PER YEAR) Yr. Const. 1996 1997 1998 1999 2000 2001 2002 2003 Majestic 1993 12 12 12 12 12 12 12 12 Splendid 1994 10* 12 12 12 12 12 12 12 Fantastic 1996 6 12 12 6 6 12 12 12 12 Excellent 1998 6 12 12 6 6 12 12 Excelsior 1999 6 12 12 12 12 Freccia Blu 1970 8 12 12 6 Victory 1989 8 12 12 12 12 New Ship A 2002 6 12 New Ship B 2003 6 Franz - 12 2 Tot. Month 40 38 42 70 84 # ships 4 3 4 7 7 84 7 84 7 90 8 Owned Time charter Leased Source: Company's data * restyling to increase the length of the ship 12
GNV: INVESTMENT PROGRAM ( mn) 189 143 116 108 79 27 2 17 6 12 19 1993 1994 1995 1996 1997 1998 1999E 2000E 2001E 2002E 2003E Source: Company's data Majestic Splendid Fantastic Excelsior Excellent 2 New Ships 13
5. THE ROUTES GNV: THE ROUTES Routes Ge-Pa Li-Pa Ge-Barca Ge-P.toTorres Ge-Olbia TOTAL Start-up 1993 1997 1998 1994 1998 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 20 17 17 10 10 # crusie ferries 2 1 2 2 1 1998 VOLUMES (no.) TOTAL Passengers (no.) 236,800 10,700 11,100 114,300 120,500 493,400 Cars (no.) 81,700 4,200 1,800 39,600 43,000 170,300 Com.Vehicles (mt.) 800,500 169,500 37,000 0 0 1,007,000 1998 REVENUES* ( mn) TOTAL Passengers 21.7 0.7 0.6 7.1 3.5 33.6 Nr. Cars 8.0 0.9 0.1 3.2 7.3 19.5 Com.Vehicles 28.9 6.6 1.3 0.0 0.0 36.8 TOTAL 58.6 8.2 2.0 10.3 10.8 89.9 % on total revenues 61% 8% 2% 11% 11% * Do not include cruises and other revenues ( Source: Company's data 14
5.1 GENOA-PALERMO- GENOA 5.2 LIVORNO - PALERMO-LIVORNO 5.3 SARDINIAN ROUTES 15
5.3.1. 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 1997 16
5.3.1. GENOA - OLBIA - GENOA 5.4. GENOA - BARCELONA - GENOA 17
6. MARKET DEREGULATION THE DEREGULATED MARKET: COMMERCIAL SEGMENT GREECE 11% FRANCE 2% SPAIN 31% ITALY 54% PORTUGAL 2% Source: Confitarma - Arthur Andersen - Dec. 1997 THE DEREGULATED MARKET: PASSENGERS PORTUGAL 1% SPAIN 15% FRANCE 3% Source: Confitarma - Arthur Andersen - Dec. 1997 ITALY 81% 18
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6.1 PRESENT COMPETITORS 6.2 TIRRENIA 20
6.3 MOBY LINES 21
6.4 SARDINIA FERRIES 6.5 GREEK OPERATORS 22
6.5.1 ATTICA 6.5.2 MINOAN 23
6.5.3 STRINTZIS 6.6 MARGINAL OPERATORS 24
7. PASSENGER TRANSPORT 7.1 THE MARKET PASSENGERS: THE ITALIAN MARKET IN THE MEDITERRANEAN Port Links No. pax ('000) % Palermo Genoa-Livorno-Naples 672 14% Olbia Genoa-Livorno-Civitavecchia-Piombino-La Spezia 1,832 39% Golfo Aranci Civitavecchia-Livorno 718 15% Porto Torres Genoa 931 20% Cagliari Genova-Civitavecchia-Napoli-Palermo 557 12% TOTAL 4,710 100% Source: Company's data based on Conto Nazionale Trasporti's data GNV presence 25
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 7.1.1 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
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
7.3 SEASONALITY 7.4 PRICE POLICY 28
7.5 THE OBJECTIVES 8. TRASPORTATION OF COMMERCIAL VEHICLES 8.1 THE MARKET 29
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 8.1.2 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
8.2 DISTRIBUTION 8.3 SEASONALITY 8.4 PRICE POLICY 8.5 THE OBJECTIVES 31
9. THE LOAD FACTOR 1998 PASSENGERS LOAD FACTOR (NO. OF PASSENGERS) Genoa- Genoa- Genoa- Genoa- Livorno- Palermo Poto Torres Olbia Barcelona Palermo Majestic 38% - - - 3% 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
10. CRUISES 11. OTHER REVENUES 12. 1999 INTERIM RESULTS 33
REVENUES PER SEGMENT ( mn) 30.0 28.0 25.0 22.5 20.0 15.0 10.0 10.0 6.9 5.0 0.9 1.2 0.0 Source: Company's data 30/06/1999 30/06/1998 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 0.1 0.4 1.1-0.2-1.2-13.0 Genova - Palermo Livorno - Palermo Genoa - Barcelona Genoa - P.Torres Genoa - Olbia Others 34 Source: Company's data
INTERIM RESULTS ( mn) 1H98 1H99 EXCL. GE-BARCA GE-BARCA ALONE* 31-Aug-99 Revenues 31.8 100.0 40.6 100.0 32.8 100.0 7.8 100.0 90.1 100.0 Change% 28% 3% 183% Other revenues 0.9 2.7 2.2 5.4 2.2 6.7 0.0 0.0 2.9 3.3 Value of production 32.7 102.7 42.8 105.4 35.0 106.7 7.8 100.0 93.0 103.3 Change% 31% 7% 185% Purchases -5.0-15.7-6.0-14.8-4.8-14.7-1.2-14.9-10.9-12.1 Other operating costs -18.9-59.3-28.6-70.3-16.6-50.6-12.0-153.4-43.2-47.9 Added value production 7.9 25.0 6.0 14.9 11.4 34.7-5.3-68.4 36.0 39.9 Change% -24% 43% 353% Labour Cost -4.9-15.4-7.9-19.4-7.9-24.0 0.0 0.0-13.2-14.6 EBITDA 3.1 9.6-1.8-4.5 3.5 10.7-5.3-68.4 22.8 25.3 Change% n.m. 15% 647% Depreciation, Amortisation & Provisions -3.7-11.7-4.8-11.7-4.8-14.5 0.0 0.0-7.5-8.3 EBIT -0.7-2.1-6.6-16.2-1.3-3.8-5.3-68.4 15.3 17.0 Change% n.m. n.m. n.m. Financial revenues (charges) -1.6-5.1-1.1-2.7-1.1-3.3 0.0 0.0-2.0-2.2 Extraordinary Items 0.0 0.0 0.5 1.2 0.5 1.5 0.0 0.0 0.4 0.4 Pre Tax Profit -2.3-7.2-7.2-17.7-1.8-5.6-5.3-68.4 13.7 15.2 Change% n.m. n.m. n.m. Taxes -0.1-0.3-0.2-0.5-0.2-0.6 0.0 0.0-1.2-1.3 Net Profit -2.4-7.5-7.4-18.2-2.0-6.2-5.3-68.4 12.6 13.9 Change% n.m. n.m. n.m. Adjusted Net Profit -2.0-6.1-6.5-16.1-2.0-6.1-4.5-58.1 11.4 12.6 Change% n.m. n.m. n.m. Cash-flow 1.3 4.2-2.6-6.5 2.7 8.3-5.3-68.4 20.0 22.2 Change% n.m. 105% 1416% Adjusted Cash-Flow 1.8 5.5-1.8-4.4 2.8 8.4-4.5-58.1 18.8 20.9 Change% n.m. 57% 969% Capital expenditure 11.2 74.7 124.8 Other net investments 23.0 23.0 Net financial position -59.4-135.9-182.4 Debt/equity 1.1 2.3 2.5 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
GENOA-BARCELONA ROUTE VOLUME TRAFFIC 30 100 ) 0 0 0 ' ( 25 20 15 10 27.1 51.4 86.8 75.7 90 80 70 60 50 40 30 t ) lm 0 0 0 ' ( 5 11.1 12.5 20.0 26.9 20 10 0 4Q98 1Q99 2Q99 3Q99 Source: Company's data Pax Commercial Vehicle 0 36
12.2 THE REMAINING ROUTES 12.3 RESULTS AS AT AUGUST 31 1999 37
12.4 VOLUME AS AT SEPTEMBER 30 1999 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 209.0 214.5 71.1 75.2 587.7 604.3 3.6 5.2 28.9 29.6 Inc. % 2.6% 5.8% 2.8% 44.4% 2.4% Livorno-Palermo 9.0 32.7 3.4 12.7 132.3 210.9 14.3 17.7 3.4 9.7 Inc. % 263.3% 273.5% 59.4% 23.8% 185.3% Genova-Barcellona 3.1 61.2 0.4 11.2 2.1 214.6 2.5 5.8 being started September 1998 % change are not meaningful Genova-P.to Torres 114.3 143.5 39.6 49.4 14.9 1.3 0.4 Inc. % 25.5% 24.7% nm nm nm Genova-Olbia 120.4 133.7 43 47.5 1.7 Inc. % 11.0% 10.5% nm nm nm Total 455.8 585.6 157.5 196.0 722.1 1,046.4 17.9 26.7 32.3 45.5 38
13. ESTIMATES NUMBER OF CROSSING 1998 % 1999E % 2000E % 2001E % 2002E % Genova-Palermo-Genova 634 51% 634 34% 604 27% 604 27% 604 27% Livorno-Palermo-Livorno 188 15% 300 16% 300 14% 300 14% 300 14% Genova-Barcellona-Genova 84 7% 452 24% 456 21% 456 21% 456 21% Genova-P.to Torres-Genova 172 14% 332 18% 672 30% 672 30% 672 30% Genova-Olbia-Genova 172 14% 172 9% 172 8% 172 8% 172 8% TOTAL 1,250 100% 1,890 100% 2,204 100% 2,204 100% 2,204 100% % CHANGE 51% 17% 0% 0% Source: Company's data 39
REVENUES PER LINE TREND ( mn) 70 60 50 40 30 20 10 0 1998 1999E 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
GNV: REVENUES BREAKDOWN LINES 1998 % 1999E % 2000E % 2001E % 2002E % REVENUES per LINE ( mn) Genova-Palermo-Genova 58.6 61% 59.6 47% 60.1 40% 61.3 38% 62.6 36% Livorno-Palermo-Livorno 7.6 8% 11.1 9% 12.7 8% 13.9 9% 14.7 9% Genova-Barcellona-Genova 2.1 2% 17.3 14% 22.4 15% 25.6 16% 31.0 18% Genova-P.to Torres-Genova 10.3 11% 16.9 13% 31.5 21% 35.6 22% 38.8 22% Genova-Olbia-Genova 10.8 11% 11.3 9% 12.0 8% 12.1 8% 12.9 7% 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 96.3 125.9 150.6 159.9 172.6 % 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 453 281 724 448 724 448 724 448 724 448 Genova-Barcellona-Genova 187 93 1,007 501 1,016 506 1,016 506 1,144 830 Genova-P.to Torres-Genova 415 351 801 677 1,621 1,370 1,621 1,370 1,621 1,370 Genova-Olbia-Genova 415 351 415 351 415 351 415 351 415 351 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 801 237 801 237 792 238 806 238 821 238 Livorno-Palermo-Livorno 170 11 242 17 256 26 270 31 278 35 Genova-Barcellona-Genova 37 11 252 120 305 157 366 167 389 224 Genova-P.to Torres-Genova 0 114 96 169 227 301 292 329 308 356 Genova-Olbia-Genova 0 121 33 124 62 131 83 130 58 137 TOTAL 1,007 493 1,423 667 1,642 853 1,817 894 1,854 990 % 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
GNV: EXPECTED CONTRIBUTION CASH INFLOWS ( mn) 14.0 12.0 10.0 1.5 1.5 1.5 0.9 8.0 6.0 4.0 1.5 1.5 1.5 9.9 10.2 8.9 8.9 0.1 12.7 2.0 5.3 5.3 5.1 5.9 0.0 1996 1997 1998 1999E 2000E 2001E 20002E 2003E beyond Source: Company data contribution of capital contributions for operating expenses 42
GNV: OTHER OPERATING COSTS ( mn) 35 31 31 32 26 27 27 21 18 18 18 3 3 5 7 8 10 6 43 1997pf 1998 1999E 2000E 2001E 2002E Source: Euromobiliare SIM estimates Maintenance Rents Services
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PROFIT AND LOSS ACCOUNT ( mn) 1998 % 1999E % 2000E % 2001E % 2002E % Revenues 96.3 100.0 125.9 100.0 150.6 100.0 159.9 100.0 172.6 100.0 Change% 20% 31% 20% 6% 8% Other revenues 2.8 2.9 3.4 2.7 3.3 2.2 3.2 2.0 2.7 1.6 Value of production 99.0 102.9 129.3 102.7 153.9 102.2 163.1 102.0 175.3 101.6 Change% 21% 31% 19% 6% 7% Purchases -11.3-11.7-18.8-14.9-21.9-14.6-22.1-13.8-22.2-12.9 Other operating costs -49.8-51.8-62.9-50.0-64.8-43.0-58.0-36.3-51.3-29.7 Added value production 37.9 39.4 47.6 37.8 67.2 44.6 83.0 51.9 101.8 59.0 Change% 18% 26% 41% 24% 23% Labour Cost -11.6-12.1-17.9-14.2-23.2-15.4-25.5-16.0-30.0-17.4 EBITDA 26.3 27.3 29.7 23.6 44.0 29.2 57.5 36.0 71.8 41.6 Change% 24% 13% 48% 31% 25% Depreciation, Amortisation & Provisions -7.6-7.9-12.0-9.5-15.6-10.4-17.6-11.0-22.9-13.3 EBIT 18.7 19.4 17.7 14.1 28.4 18.8 39.9 24.9 48.9 28.3 Change% 36% -5% 60% 41% 23% Financial revenues (charges) -4.6-4.8-5.0-4.0-7.7-5.1-9.4-5.9-12.3-7.2 Extraordinary Items 0.4 0.4 0.4 0.3 0.0 0.0 0.0 0.0 0.0 0.0 Pre Tax Profit 14.4 15.0 13.1 10.4 20.7 13.7 30.5 19.1 36.6 21.2 Change% 28% -9% 58% 47% 20% Taxes -1.2-1.2-1.0-0.8-1.5-1.0-2.9-1.8-5.5-3.2 Net Profit 13.3 13.8 12.1 9.6 19.1 12.7 27.6 17.2 31.1 18.0 Change% 33% -9% 58% 44% 13% Adjusted Net Profit 12.0 12.4 10.8 8.6 17.6 11.7 25.9 16.2 31.1 18.0 Change% 37% -10% 63% 47% 20% Cash-flow 20.9 21.7 24.1 19.1 34.7 23.1 45.2 28.3 54.0 31.3 Change% 19% 15% 44% 30% 19% Adjusted Cash-Flow 19.6 20.3 22.8 18.1 33.2 22.0 43.6 27.2 54.0 31.3 Change% 21% 17% 46% 31% 24% FINANCIAL AND OTHER FIGURES ( mn) Dividends (total amount) 3.5 4.5 5.7 8.3 9.3 Pay-out ratio 26% 30% 30% 30% 30% Capital expenditure 12.1 189.0 19.1 143.1 71.9 Other net investments 2.5-9.9-10.2-8.9-8.9 Net financial position -64.7-155.5-134.5-233.0-254.0 Debt/equity 0.9 1.1 0.8 1.3 1.3 Actual tax rate 8% 7% 7% 9% 15% Net working capital -9.3-8.2-8.8-8.7-6.0 47
RESULTS INCLUDING TAX BENEFITS FOR LABOUR COSTS ( mn) 1999E 2000E 2001E EBIT 21.2 16.8 32.8 21.8 44.8 28.0 Change% 13% 55% 36% Net Profit 15.4 12.2 23.2 15.4 32.2 20.1 Change% 16% 51% 39% Cash flow 27.4 21.7 38.8 25.8 49.8 31.1 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) 55.3 47.3 MINOAN (listed in 1998) 32.1 24.5 STRINTZIS (listed in 1994) 38.9 39.2 AVERAGE 42.1 37.0 * Anek multiples not available (it was listed at the beginning of 1999) Source : Bloomberg 48
EXISTING OWNED CRUISE FERRIES COMPARISON GNV Passenger capacity Com. vehicle capacity Speed MAJESTIC 1,650 2,276 22 SPLENDID 2,000 2,862 22 FANTASTIC 2,033 2,276 23 EXCELSIOR 2,253 2,516 24 ATTICA SUPERFAST I & II 1,400 850 27 SUPERFAST III & IV 1,400 1,000 29 MINOAN NUMBER OF CARS IKARUS 1,500 1,000 27 PASIPHAE 1,500 1,000 27 ARETOUSA 1,500 1,000 26 (1) = number of cars ATTICA Source: Bloomberg 49
15. CONCLUSIONS 50
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16. SWOT 52
53
INDEX INVESTMENT SUMMARY... pag. 3 1. INTRODUCTION: THE COMPANY... pag. 7 2. A HISTORY OF GROWTH... pag. 7 3. THE FLEET... pag. 9 3.1 OWNERSHIP VS TIME CHARTER... pag. 10 4. GROWTH STRATEGY- CAPEX PROJECTIONS... pag. 11 5. THE ROUTES... pag. 14 5.1 GENOA-PALERMO-GENOA... pag. 15 5.2 LIVORNO-PALERMO-LIVORNO... pag. 15 5.3 SARDINIAN ROUTES... pag. 15 5.4 GENOA-BARCELONA-GENOA... pag. 17 6. MARKET DEREGULATION... pag. 18 6.1 PRESENT COMPETITORS... pag. 20 6.2 TIRRENIA... pag. 20 6.3 MOBY LINES... pag. 21 6.4 SARDINIA FERRIES... pag. 22 6.5 GREEK OPERATORS... pag. 22 6.6 MARGINAL OPERATORS... pag. 24 7. PASSENGERS TRANSPORTATION... pag. 25 7.1 THE MARKET... pag. 25 7.2 DISTRIBUTION... pag. 27 7.3 SEASONALITY... pag. 28 7.4 PRICE POLICY... pag. 28 7.5 THE OBJECTIVES... pag. 29 8. TRANSPORTATION OF COMMERCIAL VEHICLES... pag. 29 8.1 THE MARKET... pag. 29 8.2 DISTRIBUTION... pag. 31 8.3 SEASONALITY... pag. 31 8.4 PRICE POLICY... pag. 31 8.5 THE OBJECTIVES... pag. 31 9. THE LOAD FACTOR... pag. 32 10. CRUISES... pag. 33 11. OTHER REVENUES... pag. 33 12. 1999 INTERIM RESULTS... pag. 33 12.1 INITIAL RESULTS OF THE NEW GENOA-BARCELONA ROUTE... pag. 35 12.2 THE REMAINING ROUTES... pag. 37 12.3 RESULTS AS AT AUGUST 31, 1999... pag. 37 12.4 VOLUME AS AT SEPTEMBER 30, 1999... pag. 38 13. ESTIMATES... pag. 39 14. COMPARABLE COMPANIES... pag. 48 15. CONCLUSIONS... pag. 50 16. SWOT... pag. 52 54