Astana, September 6 th, 2017 TPER spa [ ] 2017 ENERGY FOR TRANSPORT: SYSTEMS FOR SUSTAINABLE MOBILITY. A TRANSPORT OPERATOR POINT OF VIEW
Table of Contents 1. Company Overview 2. Business 3. Financial Performance 4. Sustananbility 2
Table of Contents 1. Company Overview 3
Company Overview TPER is the operator of the urban and extra-urban transport in Bologna and Ferrara provinces. Moreover, it is in charge of the regional train service in Emilia Romagna in JV with Trenitalia. The Company is a shareholder of other companies operating the bus network in the province of Modena, Piacenza, Reggio Emilia, Forlì-Cesena, Ravenna and Rimini. In addition, the Company performs other activities related to the transport service such as rail freight, rail fleet maintenance, management of parking areas, car sharing and bike sharing. 2016 highlights Piacenza Parma Reggio Emilia Modena Bologna Ferrara Ravenna Revenues: 309.7 M EBITDA: 38.8 M Net Income: 7.6 M Forlì Cesena Rimini Bus passengers: 140M 1 Bus mileage: Km 44,2M 1 Train passengers: 10.5M CATCHMENT AREA One the wealthiest areas of the Country (33,6 k GDP pro capite) Railway services: Emilia Romagna population 4.5M Directly managed Bus services: Provinces of Bologna and Ferrara 1.3M Bologna as a relevant transportation node in North-Central Italy (high speed network, regional rail network, freight and logistic node) Train mileage: Km 5.8M Bus managed 2 : 1,147 Trains owned 2 : 17 3 1 Data referred to the Consortium TPB and TPF awarded with Bologna and Ferrara bus services 2 Asset available on 30-6-2017 3 7 of which were financed with public funds; TPER also manages other passenger trains and railcars put at its disposal by Emilia Romagna Region 4
Business activities Transport Road Transport Train Parking Infrastructure Bike sharing Catchment area consists in 6,330 km 2 covering Bologna and Ferrara's areas 44M km of road transport offered (Consortium TPB and TPF) 1,147 bus (40% of regional fleet) 400,000 passengers every day (50% of regional users) Over 5.8M trainkm (27.5% of regional services) 10.5 M passengers per year 15,000 journeys 12,670 seats (60% in new rolling stock) 400 trains every day (44% of regional train service) 30,000 passengers every day Operating in freight rail service through subsidiary company Parking in Bologna managed till the merger in 2012, then passed to ATC. In 2014 Tper won the parking tender. The service is entrusted as a contract (fees paid by Comune di Bologna) and not as a concession (income from users) Car Sharing TPER carries out complex projects for mobility with the aim to reduce overall environmental impacts of transports, reinforce interchange and improve the transportation service offer. The project Emilio (ex Crealis NEO) aims to complete the development of a new generation of trolleybus (optical guide) The project People Mover consists of a single rail transportation system which connects the airport and the train station in 7 minutes every 4 minutes. The investments are made through project financing. The company vehicle Marconi Express is participated by Integra at 75% and Tper at 25%. Aeroporto Marconi takes part in the project, with also a support of SFP TPER manages the service C'entro in bici, which allows free use of bikes and the service of bike stamping in order to deter the theft. 22 points of distribution More than 170 bikes More than 6,600 people registered / keys distributed 216 stations 46 parking areas 60 cars 1332 clients 35,000 hours of service Over 270,000 km Rail maintenance Mafer, fully controlled subsidiary, manages the maintenance of TPER rolling stock but also for third parties (turnover 16 M ) 5
Group structure TPER The Group is made up of TPER and 7 fully consolidated entities. In addition, TPER has 6 affiliated companies OMNIBUS 10% AGI 5% TPB S.Cons.a r.l. 85% 100% MA.FER S.r.l. FE.M. 3% COSEPURI 17% SACA 17% CO.ER.BUS 15% FE.M. 49% TPF S.Cons.a r.l. Omnibus S.Cons.a r.l. SST Srl 97% 51% 51% 95,35% 94,95% DINAZZANO PO S.p.A. Holding Emilia Romagna Mobilità S.r.l. Autorità Portuale Ravenna 1,55% ACT 1,55% Porto Intermodale Ravenna 1.55% NUOVA MOBILITÀ 5.05% Consorzio Integra 75% Altri consorziati +99% CONTROLLED ENTITIES Marconi Express SpA C.E.E. Consorzio Esperienza Energia (previewed exit strategy) 25% <1% 6,65% 26% 30% NON CONSOLIDATED AFFILIATES 13,79% SETA 42,8% Consorzio Trasporti Integrati SFP Emilia-Romagna Scarl START Romagna ACT - City of Modena Municipality of Piacenza Province of Modena Other cities from the area of Modena for a total of 50.55% TRENITALIA 74% TRENITALIA 70% RAVENNA HOLDING S.p.A Rimini Holding SPA Livia Tellus Romagna Holding S.p.A. - City of di Cesena Province of Rimini and other small cities for a total of 86.21% 6
Company evolution The Group has been active in the local transport business since the start of the public service and has developed unrivalled skills throughout its history TPER is awarded with the management of parking area, car sharing and bike sharing service 2015 ACFT awarded with Ferrara bus services ATC awarded with Bologna bus services 2012 2014 TPER, in consortium with Trenitalia, has been awarded with the passenger rail service of Emilia-Romagna Region Start-up of ATM as operator of urban transport in Bologna 2011 2009 1872-1933 Start-up of local railway companies 1939 2001 Ferrovie Emilia- Romagna consolidates previously local railway operators 2006 ATC (Province of Bologna and ACFT (Province of Ferrara) merger TPER is established through the merger between ATC (in charge of the public transport service in the Province of Bologna and Ferrara) and FER (regional train company) 7
Table of Contents 2. Business 8
How TPER group works Regional and Local Public Entities Contracting Agencies Awarded Company End User FER Service Consorzio Trasporti Integrati (2) TPER provides transport services, with its personnel and rolling stock (train and bus) Contract SRM Assignment (1) TPB S.Cons.a r.l. TPER receives service contracts AMI TPF S.Cons.a r.l. fees TPER receives tickets from end users Tickets for bus and trains TPER owns the rolling stock (3) and personnel needed to perform the transport public service and it receives service contracts fees and tickets from end users (1) Service Contract also puts at disposal of the awarded operator the industrial assets functional for rendering transport services (e.g. maintenance plants) (2) Until 2019 (3) Part of the railway fleet is put at disposal by the Region Emilia-Romagna 9
Local Public Transport Financing Revenues from sales and services Services contract fees: - ex Fondo Nazionale Trasporti - Emilia Romagna Region Other TPER value refers stand alone balance sheet The contribution of ticket revenues increased significantly from the start-up of TPER till 2016, reaching 40% of TPER total income 10
Local Public Transport Financing: Tickets revenues In a context of declining contributions, tariff revenue has been steadily increasing Even if there was a tariff adjustments in 2013 (based on inflation trend), the improvement was due mainly to the increase in the number of ticket sold, to the retention of clients (higher increase of monthly pass and annual pass) and to a specific program launched by the company to increase revenue from tickets by reducing non paying passengers Ticket revenues ( m) Number of tickets sold (m) Data from 2012 refers only to ten months (March-December) Ticket revenues increased in TPER by more than 10% from 2013 till 2016, a positive result in public transport in Italy, especially if compared to the demographic and passengers trend of the Region in the last years 11
Asset base Bus Train # 1,147 owned 38 blocked trains * 10 Locos + wagons More than 80 railcars * Average life 13.7 years (14 for bus; 9 for trolleybus) 1.5 years ** Typology 719 Diesel 267 Natural Gas 67 Hybrid 6 Electric 88 Trolleybus 26 EMU 12 DMU 10 electric Locos 32 wagons More than 80 railcars * TPER owns 14 EMU (7 of which financed with public funds), 2 DMU and 1 railcar; the other rolling stock is put at disposal by Emilia-Romagna Region ** Referring just to trains owned by TPER and not considering one electric train of 1956 TPER is focused on renewing and upgrading its fleet through the acquisition of new and eco-friendly vehicles 12
Network and its evolution (1) Bus Services In Emilia-Romagna Region there are currently 4 operators active in 9 Provinces. In 2016, Giunta Regionale of Emilia-Romagna planned 109.9 mln buskm as minimum services (Deliberazione 693/16), with a Regional subsidy of 250.9 M Bus minimum services in Emilia-Romagna Affiliates operators service contract duration TEP SETA TPER START ROMAGNA 8,2 12,7 9,0 12,4 34,7 8,9 6,9 SETA Initial service contract duration Dec 2014 Extended service contract duration Dec 2017 Data: Rapporto di Monitoraggio 2016 Regione ER 9,2 7,7 START ROMAGNA Dec 2013 Dec 2017 - Rimini Dec 2018 - Forlì-Cesena Till new tender - Ravenna Train Services The commitment of the regional rail passenger services is made in the form of a unique lot for all regional services. TPER is working in the CTI - Consorzio Trasporti Integrato (Trenitalia 74% and TPER 26%), awarded with the original tender, extended to permit the new tender procedure and following service starting. TPER, together with Trenitalia in the NewCo SFP (Trenitalia 70% and TPER 30%) was awarded also with this tender. TPER operates services both on RFI and on the Emilia-Romagna Region network Regione Emilia-Romagna rail services and network 1,650 km of railway network (1,300 km managed by RFI and 350 km owned by the Region and managed by FER) 265 active station (120 on the network owned by the Region) 150 trains 900 rides every day 19.1 millions of train-km including substitute bus (2015) 43 millions of passengers yearly Regional network RFI lines where TPER operates Regional lines where TPER operates 13
Table of Contents 3. Financial Performance 14
Summary KPIs (1) Bus-Km (in /000) Comments Bus production broadly stable from 2013 till 2016 (average -0.6%) Even if in a decreasing production framework, the number of paying passengers significantly increased from 2013 till 2016 (average +2.7%), due to the strong campaign of ticket controlling adopted by TPER and to an increase of passengers using public transport Number of Passengers - Bus Services (in /000) 15
Summary KPIs (2) Train-Km (in /000) Comments Train production increased from 2013 till 2016 (average +2.8%), mainly due to the utilization of the recently acquired trains for services on the national network The number of paying passengers significantly increased from 2013 till 2016 (average +5.7%), partly due to the campaign of ticket controlling partly to the fact that new services are rendered along O-D relations with higher attendance Number of Passengers - Train Services (in/000) 16
Historical revenue performance 235,7 Revenue (in M) (M ) 2013 2014 2015 2016 Production Value 289,6 294,4 307,7 309,7 Revenue breakdown * (in M) 253,4 259,4 257,2 (3,1%) 0,3% Comments Consolidated Production Value grew during the period 2013-2016 from 290M till 310 M, at a 2.3% CAGR TPER stand alone revenues in the same period increased at a CAGR 3% (from 236 M to 257 M ) The trend is mainly due to the increase of Revenues from sales and services (CAGR 8.5%), deriving partly from the awarding of the tender for parking in Bologna and partly from a specific program launched by the company to increase revenue from tickets by reducing non paying passengers Revenues from service contracts grew by 0.3% Other revenues had non ordinary elements in 2014 (penalties from suppliers) and 2015 (use of a fund allocated for contract labor renewal) 8,5% * The revenue breakdown is available only for the stand alone balance sheets (Italian GAAP) 17
Table of Contents 4. Sustainability 18
vision Trolley network restart in 1990 this network is in continuous improvement No diesel buses for city (2001) start of the CNG project No diesel for intercity service start of LNG project (tender for filling station and two for 111buses are undergoing) 19
In full application of the EU94/2014 The company sustainability strategy conserning Buses stop Not renewable diesel Electricity Trolley Hybrid BEV renewable Compressed Natural Gas Liquefied Natural Gas 20
Trolley network: existing and palnned lines 21 21
The last 49 trolley in exploitatio Tender for 62 bimodal trolley 18m trolley + battery Por fesr project is undergoing 22
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Hybrid 18 m For new Agrocultural site in bologna Start 15 th november 2017 CNG buses 24
Strategy and Investment : the Future Investment are output of different but integrated strategies: Vehicles substitution strategy of substitution and development of the fleet for quality improvement of the transport service ; Sustainability strategy for low or zero emission; Economical strategy. 25
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Maintenance strategy for supporting the sustainability And economical strategy of the transport operators Zero emission strong sustainability strategy Lower/zero Diesel buses Specifical economical Value of each manitenance activities insourcing Change Management zone outsourcing Diagnostic activities knowledge Standard Market supply of maintenance service Only constructor Large competitive market 27
Conclusion An effectivenes sustainability strategy ask for application : -vision -investment; - knowlege. Very simple to talk but very heavy to do. 28