vito gamberale - speech at cciaa molise - may 22, 2015
TRANSCRIPT
Rome, May 22nd 2015
Presented by Vito Gamberale
Foreword Page 3
Professional career Page 6
IMI Page 7
GEPI Page 8
ENI Page 9
SIP/TELECOM ITALIA/TIM Page 10
AUTOSTRADE Page 15
F2i Page 16
INVESTOR MANAGER Page 22
2
Summary
3
Foreword
– Today’s meeting objective was to show the importance of leadership inpresent-day society, particularly in a corporate environment
– Life will prove that a leader should first of all be inspired and driven by clear,definite, and sound values, such as:
o integrity
o commitment
o rigour
o open-mindedness
o interdisciplinarity
o competence
Elements that give rise to the developmentof "leadership"
4
Foreword– Such values are translated into a number of professional and ethical qualities that
build a leader. In particular:
o clarity in defining and communicating targets;
o guidance by being a role model;
o team development and management by endorsing the diversity andcomplementarity of different members and pooling their strengths to achievea shared target;
o vision, i.e. project a future scenario that reflects your company's ideas,values and expectations;
o unconventional thinking;
o the ability to recognise and anticipate change;
o a broad sense of development through innovation;
o combining corporate development with fair returns for shareholders;
o combining operational efficiency to a balance financial management.These values and the resulting characteristics are stable over time and canbe found in all successful managerial practices and leaderships.
5
Foreword
I have been invited to present my personal managerial experience during this"one-day meeting on economics", organised by the Confindustria of the MoliseRegion and addressed to the students from Campobasso.
Throughout my speech, I will show you how I tried to apply the values listedabove in the actions that marked my career and present the mentors who havetaught me during my lifetime.
6
Professional career
1968 '69 '77 '84 '91 '98 '06 '14
GEPIAnic
Evaluation ofinvestment plans and
industrial development
Rescue of distressedcompanies and
reintroduction on themarket
Privatisation of non-core assets (textiles,clothing, non-ferrous
metals, former Amiata)
Development ofmobile telephony
Exit from non-coreassets
Development of newtechnologies
Development ofinternational activities
Fund-raising
Acquisition of publicand private
infrastructure assetsand organisation by
industries
Achievements asspecialist
(under the guidance ofmanagerial "mentors")
Achievements asmanager
My career started in 1968 steered by great management "mentors" andleaders that characterised that environment.
They taught me values that constantly inspired my managerial activity, whichstarted in 1991 and has focused on industrial sectors undergoing a profoundrenewal ever since.
24 years70 years
Achievements asdirector
Achievements asinvestor/manager
INVESTORMANAGERV.A.G.
7
IMI
Achievements
−Evaluation of investment plans and industrial development of companies through long-term financing
Fundamental principles and values
−"Mentor": Enrico Murri
−Rigour, discipline, method
−Respect towards all companies, regardless of size or sector
Even prior to the computer era, he developed asophisticated database of all sector time andspace parameters of the Italian industrial system
8
GEPI
Achievements
−Rescue of distressed companies and reintroduction on the market
Fundamental principles and values
−"Mentor": Mario Murri
−Supporting recovery of distressed industrial entities
−Always aiming for the best
−Fostering technology development
GEPI
Great concisenessEmotional detachment and fast decision-makingSense of humour
9
ENI
Achievements− Privatisation of non-core assets (textiles, clothing, non-ferrous metals, former Amiata)
Fundamental principles and values
− "Mentor/s": Prof. Franco Reviglio
Vittorio Mincato
− Returning ENI to its core business, i.e. energy− Reallocation of non-core business and support to its specific industries – where
possible – or diversification where and when necessary
ENI then President
Assistant to the President at thetime (CEO from 1998 to 2005)
Bravely managed critical and complexsituations through a clear and rigorousmethod and approach.
10
SIP/TELECOM ITALIA/TIM
Achievements
−Development of mobile telephony
Fundamental principles and values
−"Mentor": Ernesto Pascale
−Bridging the gap of Italian TLCs, especially in mobile telephony
Initially President of SIPthen President of TI and STET
Showed audacity and ambition for greatprojects. He turned TI into the best worldwideoperator for development, efficiency,profitability and international presence.He bravely supported and encouraged me tolaunch TIM
11
SIP/TELECOM ITALIA/TIM
International development of Telecom Italia's fixed network business in the90s
1994 1995 1996 1997 1998 1999
EuropaEuropa America del NordAmerica del Nord
AsiaAsia AmericaAmericadel Suddel Sud
1994 1995 1996 1997 1998 1999
EuropaEuropa America del NordAmerica del Nord
AsiaAsia AmericaAmericadel Suddel Sud
Europe North America
SouthAmerica
Asia
12
SIP/TELECOM ITALIA/TIM
Mobile telephony penetration coefficient in Europe 1990-1994
Years
13
SIP/TELECOM ITALIA/TIM
Mobile telephony penetration coefficient in Europe 1990-1998
Years
14
SIP/TELECOM ITALIA/TIM
International development of TIM's mobile business in the 90s
1994 1995 1996 1997 1998 1999
EuropaEuropa America del NordAmerica del Nord
AsiaAsia AmericaAmericadel Suddel Sud
Europe North America
SouthAmerica
Asia
15
AUTOSTRADE
Achievements
−Exit from non-core assets
−Development of new technologies
−Development of international activities
Fundamental principles and values
−Model: major European infrastructure operators
−First privatisation of an infrastructure in Italy
−Return to the core business
−Development of new technologies
−Export of the model abroad
16
F2i
Achievements
−Development of the biggest Italian private equity fund
−Fundraising for Fund I and Fund II
−Participation acquisition and aggregation by business branch (gas, airports, water services, etc.)
−Creation of independent "national champions" in single branches (2iRG, Metroweb, Aeroporti, etc.)
−Management of participated (in some cases public) companies with an industrial approach
Fundamental principles and values
−Relaunching of Italy's development by enhancing existing infrastructures
−Initiation of a new "local" privatisation phase
−Fostering aggregation of participated companies and integration of the managed infrastructure networks
−"Return to Italy" strategic assets gone abroad (E.On and G6 gas networks, the Naples Airport, Metroweb)
−Development of companies by reinvesting returns generated by their management
−Generation of value for shareholders
F2i – FUND I INVESTOR CATEGORIES
Meeting at Consob, October 2nd 2013
F2i's investors include entities aiming to be long-term reference shareholders in Italianinfrastructures as well as investors wishing to monetise within the fund's lifespan
Two renowned international (European) asset managers – including Ardian – recentlyjoined the investor group by acquiring 220 million Euro shares of Fund I on thesecondary market
17
Categoria di investitori Numero Ammontaresottoscritto (€ mln) % del Fondo
Casse previdenziali 13 502 27,1%Fondazioni 25 427 23,1%Banche 3 360 19,4%Asset Manager Internazionali 3 230 12,4%Assicurazioni 6 * 175 9,5%Istituzione Finanziaria Pubblica (CDP) 1 150 8,1%Sponsor & Management n.a. 8 0,4%Totale 1.852 100,0%* Cons idera separatamente tre ass icurazioni parte del medes imo gruppo
Social insurancesFoundationsBanksInternational asset managersInsurancesPublic sector financial institution (CDP)Sponsor & Management
Total*Insurances of the same group are considered separately
Investor categoryNumber
Subscribed capital(mln./€) Fund %
F2i – INVESTMENT BRANCHES OF THE TWO FUNDS
Impegnato(M€)
Erogato(M€) %
F2i I71,9% 99,9%
100% 40,0%
100% 70,0%
100% 44,3% ( 35,7% Fondo I; 8,6% Fondo II )
67,7%
53,8% 87,2%
85,0%
26,3%
15,7%100%
49,8%
100% 100% 70,0%(Fondo II)
100% 51,0% 80,0%
100% 10,3%
2.086 1.755 84%* Si intende compresa la partecipazione in Software Design.** Include quote di Equiter (put & call 2014),di SAB (put 2014) e Aviapartners*** Parte di un Consorzio che controlla il 59,3% della società
100%
83 7 8%
F2i II
SIA ***F 2i R et iLo giche 50 50 100%
F 2iA mbiente T R MT R M V
99%
SA GA T ** (T o rino ) 115
100%
18 100%
SEA (M alpensa /Linate / B ergamo ) 532 100%
Saster N et 18
68 59%
92%
H F V
82%
52 51
F 2iR et i Ita lia
F 2iEnergie
R inno vabili
M etro webItalia M etro web 201 201
F 2i A ero po rt i
F 2i SistemaA ero po rtuale
C ampanoGESA C * (N apo li) 81
A lerio nC lean P o wer 78 64
532
88
Infracis 31 31
(63,9% Fondo I;8,1% Fondo II)
F 2i ER 1 F 2i ER 2 Ediso n R inno vabili 0%0135
F 2i R eteIdrica Ita liana
M editerranea delleA cque 235 184 78%
2i R ete Gas 468 468 100%GAS
ACQUA
AEROPORTI
TLC
ENERGIERINNOVABILI
TRASPORTI
WASTE TOENERGY
RETIIMMATERIALI
18
Committed Granted
(63.9% Fund I,8.1% Fund II)
(35.7% Fund I, 8.6% Fund II)
(Fund II)
GAS
RENEWABLEENERGY
TRANSPORTS
WATERSERVICES
AIRPORTS
TLCs
WTE
INTANGIBLENETWORKS
(Turin)
(Naples)
* Including the participation in Software Design** Including shares of Equiter (put & call 2014), SAB (put 2014), and Aviapartners*** Part of a consortium controlling 59.3% of the company
F2i – INVESTMENT BRANCHES OF THE TWO FUNDS
Although launched as a fund, F2i actually operates as a public company: each project aims to develop a business branch in specific sectors and fostercooperation among the participated companies:
GASCreation of an independent gas distribution network operator acting as an aggregating
entity in a sector undergoing a concentration phase.
Aims to get independence between sale and distribution.
RENEWABLEENERGY
Two independent entities with influential shareholdership and management. Today this sectoris threatened by contradicting provisions that prevent a future development in Italy.The network represents an overall profitable investment for F2i.
TRANSPORTSEntry point to the highway sector. To date this business area has not "opened".
Possible important openings/opportunities – or else F2i will abandon the sector.
WATERSERVICES
Development of a "national champion", in a sector strategic to Italy in need of big investments
to modernise existing plants. All this despite the demagogic results of the 2011 referendum.
AIRPORTSCreation of an aggregating centre in a highly-fragmented sector characterised by alarming
distorting low-cost predominance and predominantly public ownership lacking strategy.
Enel Rete Gas2i Gas (former E.On Rete)
AlerionHFV
Infracis
Mediterraneadelle Acque
GESACSEASAGAT
G6 Rete Gas
TLCsFosters the development of optic fibre in the most populated and developed Italian areas.Metroweb
Sasternet
WTE TRMA chance to create the third national operator focusing on Northern/North-Western Italy, able
to seize new development and consolidation opportunities.
INTANGIBLENETWORKS SIA
Stable shareholdership for former consortium of highly technological companies with vast
growth potential.19
F2i Group – CURRENT PARTICIPATIONS
The current outreach of the First and Second F2i Fund* generated "aggregated" returns foraround 2.3 bil € and 1 bil € EBITDA in 2014.
F2i
2i ReteGas
72.0%
MetrowebItalia
53.8%
GESAC
70%
HFVMdA
40% 49.75%
SEA
44.3%
Alerion
16%
SAGAT
54.5%
TRM
41%
SIA
12.1%
E2i
70%
Returns
EBITDA
%
CAPEX
658
363.9
55.3%
174.1
67.1
49.8
74.3%
29.6
81.7
49.8
74.3%
13.2
Mil./€
55.4
10.3
18.6%
3.1
614.2
199.6
32.5%
97.7
148.1
73.5
49.7%
38.7
45.5
34.6
76.2%
1.0
45.0
25.5
56.7%
1.6
70.8
47.6
67.2%
12.0
432.3
117.8
27.2%
14.5
119.7
83.2
69.5%
11.0
2,344.2
1,036.1
44.2%
396.7
Aggr.
*The participation of Infracis is not included. 20
DIVIDENDS AND GROSS DIVIDEND YIELD (2010-2014) – F2i I
52,5
- 0,5 - - -
-53,3
2,1 0,64,5
- -
-
15,9
2,3 2,3 - 1,2 -
-
46,1
12,2
5,0 7,2 6,60,1
0,1
66,8
24,0
4,28,0 5,4
0,3
108,6
0
20
40
60
80
100
F2i Reti Italia(2i Rete Gas)
F2i Aeroporti(GESAC/SEA/SAGAT)
F2i EnergieRinnovabili
(ALERION\HFV)
F2i Rete Idrica(MdA)
Metroweb Italia(METROWEB)
Infracis TOTAL
2010 2011 2012 2013 2014
Importi in €\Mln.Importi in €\Mln.Figures in mil./€
21
F2i Reti Italia(2i Rete Gas)
F2i Aeroporti(GESAC/SEA/SAGAT)
F2i Energie Rinnovabili(ALERION\HFV)
F2i Rete Idrica(MdA)
Metroweb Italia(METROWEB) SEA(1) Infracis TOTALE
Costo storico al 30.09.2014 (€\Mln) 417,82 594,29 114,56 183,93 218,58 30,86 1560,05 (2)
Dividend Yield 2010 18,80% - 0,77% - - - - 15,41%Dividend Yield 2011 19,07% 10,97% 0,76% 2,52% - - - 10,89%Dividend Yield 2012 3,81% 8,13% 2,48% - 1,05% - - 1,85% (3)
Dividend Yield 2013 11,04% 17,96% 4,64% 3,91% 3,03% 1,78% 0,26% 5,03%Dividend Yield 2014 15,99% 4,03% 3,67% 4,35% 2,46% - 0,84% 6,96%NB: Il dividend yield è calcolato sul costo storico delle Partecipazioni al 31 dicembre dell'anno precedente. Per quanto riguarda la partecipata FRII il dividend yield è calcolato considerando nel costo storicoil BtE (€ 178 mln.) in scadenza il 24 maggio 2013.(1) Il dividend yield di SEA è calcolato sul costo storico della partecipazione al 31 dicembre 2012 pari ad € 445 mln., qualora fosse stato calcolato sulla sola quota che ha erogato il dividendo (29,75%acquistata nel 2011), il dividend yield sarebbe stato pari a 2,07%(2) Il valore del Costo storico riportato afferisce alle sole Partecipate che hanno prodotto dividendi nel 2013.(3) Il calo del rendimento 2012 è dovuto all'operazione straordinaria effettuata da ERG per l'acquisizione di G6 Rete Gas, nell' ottobre 2011. Per realizzare detta operazione ERG ha effettuato un importanterifinanziamento che ha comportato vincoli sulla distribuzione dei dividendi. F2i ha preferito effettuare l'acquisizione tramite ERG, che aveva capacità di debito inutilizzata, apportando un aumento di capitalecontenuto (€ 52,7 mln. richiamati nel settembre 2011) con notevole beneficio in termimni di IRR e minori richiami per gli Investitori, che diversamente, sarebbero stati pari a circa € 197 mln.
Historical cost on September 9th 2014 (mil./€)
TOTAL
Note: The dividend yield is calculated based on the participation historical cost until December 31st of the previous year. As for participated FRII, its dividend yield calculation includes the BtE (178 mil. €) expiring on May24th 2013 in the historical cost.(1) SEA’s dividend yield is calculated based on the participation historical cost until December 31st 2012 of 445 mil. €; if calculated based only on the share that granted the dividend (29.75% acquired in 2011), thedividend yield would be 2.07%.(2) The value of the reported historical cost refers to the sole participated company that produced dividends in 2013.(3) The drop in returns in 2012 is due to the extraordinary transaction performed by ERG for the aquisition of G5 Rete Gas in October 2011. For this transaction ERG deployed an important re-financing that led torestrictions of dividend distribution. F2i preferred to perform the acquisition through ERG, which had an unused debt capacity through a moderate asset increase (52.7 mil. €, recalled in 2011) with great advantages interms of IRR and minor recalls for investors that would otherwise have amounted to about 197 mil. €.
22
INVESTOR MANAGER
Achievements
Through VAG (a kind of personal fund), I invest in selected companies with elevatedgrowth potential
-I enter as President
-I agree upon the company value when entering and the exit valuation criteria
NOW: PSC Group Leader in plant engineering
NEXT: IC Leader in additives for building materials
SOON (TBD): English funds Leader in renewable energy
INVESTORMANAGERV.A.G.
23
Professional career
1968 '69 '77 '84 '91 '98 '06 '14
GEPIAnic
Achievements asspecialist
(under the guidance ofmanagerial "mentors")
Achievements asmanager
My career started in 1968 and was shaped under the guidance of greatmanagement "mentors" and leaders that characterised that environment.
They taught me values that constantly inspired my managerial activity, whichstarted in 1991 and focused on industrial sectors undergoing a profoundrenewal ever since.
24 years 70 years
Achievements asdirector
Achievements asinvestor/manager
INVESTORMANAGERV.A.G.
Learning ReturningEarnings
- to companies- to social matters- to affections