Upload
jaafar
View
26
Download
2
Tags:
Embed Size (px)
DESCRIPTION
Livorno, October 7 th 2010 LEM Conferences Room CONFERENCE of EU INTERREG IVC FLIPPER PROJECT. Piero Sassoli – Director General Tiemme S.p.A . TIEMME: Transport Companies Merger. PT IN ITALY Backwardness factors. Criticità. Evidenza. EBIT equal to -2,3% - PowerPoint PPT Presentation
Citation preview
Piero Sassoli – Director General Tiemme S.p.A.
TIEMME: Transport Companies Merger
Livorno, October 7th 2010LEM Conferences Room
CONFERENCE of EU INTERREG IVCFLIPPER PROJECT
PT IN ITALYBackwardness factors
Italian PT is characterized by several backwardness factors
Criticità Evidenza
NEGATIVE PROFITABILITY
PRODUCTIVITY GAP
FRAGMENTATION ANDSMALL COMPANIES SIZE
• EBIT equal to -2,3%• Public contribution of around €4
billions
• Difference of 20% comparing to the EU average
• More than 1.200 operators• The 1st 5 companies absorbe 27%
of the market
PT IN ITALYManagement shape
More than 1.200 companies, 90% of which has less than 100 workers
N° of Companies on the basis of workers number
0
500
1.000
1.300
Meno di 20 addetti
945
Tra 20 e 100 addetti
158
Oltre 100 addetti
135
Totale operatori
1238
76%
13%11%
< 20 workers 20< x < 100 > 100 workers Total number of companies
PT IN ITALYItalian Players Dimension
470 million Euros
TOTAL REVENUE OFMILAN, TURIN, BOLOGNA, FLORENCE ANDROME COMPANIES: 2 billion Euros
730 million Euros
120 million Euros
540 million Euros
160 million Euros
4.300
3.400
2.400 2.300
VeoliaTransport
RATP Arriva Keolis
Main EU operators Revenue (mln. €)
PT IN ITALYDevelopment Axis
TERRITORIAL INTEGRATION
MO
DAL
IN
TEG
RATI
ON
Creation of widened transport basins(clearing of local dimension)
Integration among the different transport
modalities (road/rail, urban/periurban)
PT IN ITALYLocal utilities consolidation process
Fusione tra AEM Torino e AMGA Genova
Fusione tra AEM Milano e ASM Brescia
Fusione tra le aziende della Lombardia meridionale
Multiutility nata dalla fusione delle aziende di servizi pubblici di Parma,
Piacenza e Reggio Emilia
Multiutility nata dalla fusione delle aziende di servizi pubblici dell’area
romagnola
Fusione tra AEM Torino e AMGA Genova
Fusione tra AEM Milano e ASM Brescia
Fusione tra le aziende della Lombardia meridionale
Multiutility nata dalla fusione delle aziende di servizi pubblici di Parma,
Piacenza e Reggio Emilia
Multiutility nata dalla fusione delle aziende di servizi pubblici dell’area
romagnola
The Local Utilities are facing an important competitive market change
Southern Lombardy companies merger
AEM Milano and ASM Brescia merger
AEM Torino and AMGA Genova merger
Multiutility generated through Parma, Piacenza and Reggio Emilia PT companies merger
Multiutility generated through Romagnole Area companies
merger
PT IN ITALY Consolidation Drivers
PT CONSOLIDATION AXIS
Local Utilities consolidation process, which is determined by two different factors, is affecting also PT sector
International “big player” which buy little local
companies
Local/Regional companies merger
PT IN ITALYThe presence of foreign providers
Important foreign providers are playing a significant role on the Italian market scenario
100 million of kilometers travelled (on the whole)
PT IN ITALY Territorial Aggregations
Abruzzo: hypothesis of merger the 3 PT companies
currently participatedby the Region
At the same time, some Italian Regions are now facing territorial aggregation projects
Hypothesis to aggregate Milan and Turin PT companies
Veneto: hypothesis of services (road/rail) integration in “Central-Veneto” area (Venice, Padua, Treviso)
Friuli Venezia Giulia: hypothesis of integrating PT services at a regional level (the service is now operated by 4 companies)
Liguria: hypothesis of PT reorganization on a regional basis (aggregation of current service basins)
Hypothesis of integrating provincial basins, starting from merger Bologna and Ferrara companies
Marche: integration of services on a provincial basis
Umbria: hypothesis of integrating regional PT operators
PT IN TUSCANYMarket Dimensions
6,220,026,0
40,744,245,349,452,254,169,569,6
95,3
117,5129,4
236,2 233,4
168,9
142,9 141,5 139,8
Kilometers on a Regional Basis (mln. km./year)
Total Italy: 1,8 billion Km
7% overall national offer
PT in TuscanyService structure before TIEMME
Massa C.
Lucca Pistoia
Firenze
Arezzo
Siena
Grosseto
Livorno
Pisa
Prato
CATBLUBUS
Cons. Autolinee Pratesi
VAIBUS
Cons. Pisano Trasporti
ATL/ ATM RAMA MobilitàSiena Mobilità
Etruria Mobilità
ATAF & LINEA, Più Bus, Autolinee Chianti
Valdarno, Autolinee Mugello Valdisieve
Massa C.
Lucca Pistoia
Firenze
Arezzo
Siena
Grosseto
Livorno
Pisa
Prato
CATBLUBUS
Cons. Autolinee Pratesi
VAIBUS
Cons. Pisano Trasporti
ATL/ ATM RAMA MobilitàSiena Mobilità
Etruria Mobilità
ATAF & LINEA, Più Bus, Autolinee Chianti
Valdarno, Autolinee Mugello Valdisieve
Tuscany assigned the operation of the whole road PT by tenders, generally identifying service areas fitting with Province territories
PT IN TUSCANYDevelopment Perspectives
• The new Regional PT system should aim at clearing the Province territorial dimension, by defining 3 integrated road-rail areas (coast, metropolitan area and southern area)
• These 3 areas will complement Regional transport which is mainly significant at a local level, while a 4th area for covering Regional railway network will be identified.
Area costiera
Coast
Metropolitan Area
Southern Area
TIEMME PROJECTGeneral Framework
Arezzo
Siena
Grosseto
Livorno Pisa
Firenze
PratoPistoia
Lucca
Massa Carrara
Piombino
“Southern Tuscany” project, bases on
merger process of PT companies of the cities of Arezzo,
Siena, Grosseto and Piombino, concluding with the creation of
TIEMME on 01st August 2010
TIEMME PROJECTThe objectives• Exploiting the potential coming from companies merger as a
tool to enhance competitiveness, by creating a new subject playing a crucial role both at Regional and National level.
• Supporting the conditions enhancing services efficiency and quality
• Preserve companies value, by protecting shareholders assets: risk of colonization or sale”
• Encouraging PT re-launch in Southern Tuscany, as a crucial condition to safeguard and develop occupation
“TIEMME” Project bases on several well-defined strategic axis
TIEMME PROJECTStakeholders perspective
SHAREHOLDERS• Enhancing
managing and commercial efficiency
CUSTOMERS
EMPLOYEESImproving the service
both from a quantitative and qualitative point of view
Job protection
One of project’s key characteristics is the production of an output for all the involved stakeholders
TIEMME PROJECTAggregated values
UP TO 2009
The overall merger could lead to the creation of one single operator producing more than 90 million Euros revenue and having more than 1.100 employees
REVENUE(mln €)
EMPLOYEES
TOTAL
21,7
273
35,6
428
9,2
125
92,8
1.159
KILOMETRES(mln km)
8,312,4 3,3 36,0
26,3
333
12,0
TIEMME PROJECTIn the national framework
0
50
100
150
ATM
141
Trambus
130
Arriva
100
SITA
96
COTRAL
81
GTT
74
CTT*
51
ATC Bo
37
ANM Na
36
Toscanadel Sud
36
Kilometres covered by the main Italian PT operators (mln. km)
The new subject would play a crucial role in the National framework (among the 1st 10 actors of the Country)
TIEMME PROJECTBenefits produced by local utilities aggregation
EBITDA INCREMENTALE IN % SULL ’ EBITDA INIZIALEEBITDA INCREMENTALE IN % SULL ’ EBITDA INIZIALE
15- 20% dell’EBITDA
iniziale
Operazione A
21,0%
Operazione B
16,0%
Operazione C
14,3%
Operazione D
20,3%
range diriferimento
Il grafico si riferisce ai benefici COMPLESSIVAMENTE ottenibili (in
termini di impatto positivo sull ’EBITDA rispetto all’EBITDA aggregato iniziale)
nell’arco di un piano pluriennale a seguito di operazioni di aggregazione
nel settore delle Utilities
Il grafico si riferisce ai benefici COMPLESSIVAMENTE ottenibili (in
termini di impatto positivo sull ’EBITDA rispetto all’EBITDA aggregato iniziale)
nell’arco di un piano pluriennale a seguito di operazioni di aggregazione
nel settore delle UtilitiesWORST CASE
BEST CASE
Bain & Company, advisordi riferimento delle principali operazioni di aggregazione nel settore delle utilites (es. A2A, Iride, Hera), ha riscontrato sul campo un incremento
dell’EBITDA “post aggregazione” quantificabile tra il 15 e il 20% del valore di partenza
FONTE: ESPERIENZE BAIN & COMPANY
EBITDA INCREMENTALE IN % SULL ’ EBITDA INIZIALE% INCREMENTAL EBITDA ON THE ’ INITIAL EBITDA
15- 20% dell’EBITDA
iniziale
Operazione A
21,0%
Operazione B
16,0%
Operazione C
14,3%
Operazione D
20,3%
Reference range
Il grafico si riferisce ai benefici COMPLESSIVAMENTE ottenibili (in
termini di impatto positivo sull ’EBITDA rispetto all’EBITDA aggregato iniziale)
nell’arco di un piano pluriennale a seguito di operazioni di aggregazione
nel settore delle Utilities
The figure refers to the overall benefits that could be reached (interms of positive impact of the finalEBITDA comparing to the initial one)
’’
in a long-term perspective thanks toUtilities aggregation processes
’WORST CASE
BEST CASE
Bain & Company, advisordi riferimento delle principali operazioni di aggregazione nel settore delle utilites (es. A2A, Iride, Hera), ha riscontrato sul campo un incremento
dell’EBITDA “post aggregazione” quantificabile tra il 15 e il 20% del valore di partenza
SOURCE: BAIN & COMPANY Experiences
Bain & Company, reference advisor on the main merger procedures in the utilities sector (e.g. A2A, Iride, Hera), found out an increase of the “post merger“
EBITDA between 15 and 20% of the initial value
15 / 20%Of the initial
EBITDA
TIEMME PROJECTArezzo urban-metropolitan integration
Arezzo
Siena
GrossetoPiombino
KEY OBJECTIVES• First step towards a wider
convergence perspective in Southern Tuscany
• Consolidation of competitiveness on a local basis, in order to get ready for the next integradìted tenders
• Creation of a more efficient and better organized service network (urban-periurban integration)
• Achievement of economic benefits, and industrial efficiency improvement
-6 million Euro revenue-1,8 million Euro km
-110 employees
-15 million Euro revenue
-6,7 million km
-170 addetti
-170 employees
TIEMME PROJECTArezzo urban-metropolitan integration: synergies
Company merger related benefits - governance costs reduction
- logistical optimization (headquarters)
Core processes synergies (operation, maintenance)
- network optimization possibilities, thanks to service areas territorial contiguity
(routes rationalization on common itineraries)
- productivity increase linked to a joint management of turn-over
- bus park rationalization- - money saved thanks to spending power
increase
“Activities sharing” related benefits - administration and staff
“COMPANY”SYNERGIES
“OPERATING”SYNERGIES
“CORPORATE”SYNERGIES
TIEMME PROJECTOverall operation structure
..% ..% ..%..%
TIEMME
In Kind Transfer
• “TIEMME” project required the creation of a new company (“newco”)where the involved companies (TRAIN, LFI, RAMA, ATM)were acting as shareholders
• In particular, former companies got “newco” assets basing on in kind transfers evaluated on a patrimonial basis (in kind patrimonial contribution of each former company to the “newco”)
TIEMME PROJECTBusiness model °
- TPL revenue – service contract and traffic related revenue - Market activities revenue
“Parent Companies” (LFI, TRAIN, RAMA, ATM), besides being newco shareholders, will keep their real estate property rights (headquarters,
depots), and receive a fare from newco for property exploitation
• Newco fare for real estate exploitation
• Administration revenue from “parent companies”
LFI, TRAIN, RAMA, ATM
TIEMME
- REVENUE - - COSTS-
• Real estate depreciation• Extraordinary property maintenance expenses• Financial costs for real estate loans
• Service operation, management and maintenance costs
• Corporate costs
• “Parent companies” fares for real estate exploitation
• Administration costs
TIEMME PROJECTMethodology
Algebraic Sum of Budget Values of assets and liabilities related to the different company branches (discounted back)
Income Surplus Value/Capital Loss associated to the activities transferred to the “newco”
NET ASSETS
SELF-START-UP FORECAST
COMPANY BRANCHES VALUE
The contribution of every company was determined basing on a mixed methodology (property-income) and considering transferred activities
discounting back and start-up forecast
TIEMME PROJECTBus park evaluation methodology
0,0
20,0
40,0
60,0
80,0
100,0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 18 19Vehi
cle
valu
e (%
on
ourc
hase
cos
t)
Curva d’ammortamento ATM
Curva d’ammortamento
RAMA
Curva d’amm
ortamento LFI
Curva d’amm
ortamento
TRAIN
In order to define bus park value at market value, UNI-ASSTRA methodology was employed: “real” vehicles depreciation was calculated by normalizing different companies amortization policies
• Homogenization of amortization policies among the different companies (real incidence of amortizations on the cost of vehicles between 4,7% and 9,2% on a yearly basis)
• Identification of a vehicles value that could be associated to the “real” market value
OBJECTIVES
Number of years
TIEMME PROJECT Different companies assets in the newcomln € TRAIN LFI RAMA ATM
Adjusted Net Assets % assets
Start-up Income
Overall Value
% assetsOther Transfers (liquidity/credits)Company Branches Value% assets in the “newco” 36,72% 30,32% 30,52% 2,44
TIEMME PROJECTIndustrial plan: inertial scenario
2010 2011 2012 2013 2013
INITIAL ECONOMIC SITUATION(“time zero”)
INERTIAL SCENARIO (costs dynamics increase economic impacts identification)
BREAK-EVEN OBJECTIVE
TIEMME PROJECTReference Framework
Multi-year objective attainment is based on some crucial strategic axis
PUBLIC TRANSPORT
MINOR BUSINESS
DEVELOPMENT RATIONALIZATION
ADJUSTMENT FEES
OTHER REVENUES INCREASE
PRODUCTIVITY IMPROVEMENT
INTERNAL EFFICIENCYENHANCEMENT
INDIRECT STAFF
MAINTENANCE
PURCHASES
GENERAL EXPENDITURES
TIEMME PROJECTImplementation Approach
WORKING GROUPS
Industrial plan implementation is managed by the different working groups
PRODUCTIVITY
MANTEINANCE
CORPORATE
PURCHASE
Reorganization and implementation of maintenance activities and optimization processes
Staff and governance reorganization and indirect staff turn-over procedure“Purchase unit” design and implementation
New commercial strategy and development opportunities identification
Business revitalizattion strategies identification and implementation
COMMERCIAL
SYSTEMS AND TECHNOLOGIES
Managing of companies convergence process towards an integrated platform
COMPLEMENTARY SERVICES
Trade union negotiacion and homogenization of employment rules