Cassa Depositi e Prestiti Corporate Presentation Infrastructure Day Borsa Italiana – Milan, 5 September 2019 Cassa Depositi e Prestiti Investing in tomorrow
CDP The Italian National Promotional Institution CDP’s Mission is to foster the development of the Country, using national savings responsibly in order to support growth and boost employment, leveraging on innovation, business competitiveness, infrastructure and local development State and private shareholders 4 Total assets 1 Loans 2 Postal funding 2 Net Income 3 438 EUR Bn 100 EUR Bn 260 EUR Bn 1H 2019 83 % 2.2 Ministry of Equity 1 Equity portfolio 2 Non-Postal funding 2 Economy and 36 EUR Bn 34 EUR Bn 93 EUR Bn EUR Bn Finance 16 % Bank foundations 1. CDP consolidated balance sheet as of 30 June 2019 1 2. CDP S.p.A. balance sheet as of 30 June 2019 3. CDP consolidated P&L as of 30 June 2019. Net Income 1H19 attributable to CDP S.p.A. equal to 1.4 EUR Bn 4. Remaining 1% treasury shares
CDP Business Model Funding & Equity 1 Areas of Activity 3 Tools Postal Enterprises 83 EUR Bn 260 EUR Bn LOANS & Savings BONDS Infrastructure, Public Sector and Local COMPANIES & 25 EUR Bn GUARANTEES INVESTMENT Development Market FUNDS 93 EUR Bn Fundings 2 Cooperation 3 EUR Bn Equity 24 EUR Bn THIRD-PARTY LIQUIDITY Large Strategic ACCOUNTS INSTRUMENTS Equity Investments 2019-2021 Business Plan aims at promoting sustainable economic growth through four main areas of activity 2 1. CDP S.p.A. balance sheet as of 30 June 2019 2. Bond funding (including commercial papers) 20 EUR Bn; Other funding from banks and customers 73 EUR Bn 3. Business Plan 2019-2021: estimates of CDP mobilized resources
CDP 2021 From Italy to Italy Main 2021 targets Proactive role as Integrated 203 EUR Bn infrastructure- customized offer development (physical and Activated resources accelerator digital) Infrastructure, Enterprises Public Sector and Local 83 EUR Bn Development Promoting Enterprises sustainable development Large 60,000 Strategic Enterprises reached Equity Cooperation Equity portfolio Investments International organized with Cooperation 25 EUR Bn an industrial protagonist approach Infra, PS and Local Dev. Reorganization based on four areas of activity, promoting sustainable growth through the evolution 3 of the operating model
Infrastructure, Public Sector and Local Development: New organization Infrastructure, Public Sector and Local Development L. D’Agnese Real Estate Infrastructure Energy Digital/Social Infrastructure Public Infrastructure Planning & development Initiatives initiatives Coverage Sector Financing Valuation ▪ Advisory to ▪ Equity ▪ Equity ▪ Relationship ▪ Financing ▪ Financing ▪ Planning and investment in investment in management activity to public activity to public sector monitoring of entities on PPP energy, waste digital with key clients secor entities private sector real estate in infrastructure infrasture clients structuring and and circular infrastructure (regions, investments economy private sector financing and social municipalities, (managed initiatives initiatives (e.g. universities, through ▪ Technical health care, other public subsidiaries and support to sector investment support for Key senior citizens, agencies) management project Activities education, company) acceleration student support, ▪ Relationship sport) ▪ Coordination of ▪ Equity management with public real estate and investment in sector clients infrastructure transport/other projects within infrastructure CDP-large projects municipality agreeements («City plans») A reshaped organizational structure to support the new CDP Operational Model 4
Infrastructure, Public Sector and Local Development Mobilized resources: 25 EUR Bn Financing Advisory to PS Guarantees & Equity Promotion Environment, water and waste management Widening Social operational scope Infrastructure Energy and networks Current focus on Transport and Widening of operational model CDP activities mobility 1 2 3 Accelerating infrastructure Enhancing proximity to PS Strengthening local presence development 5
CDP Infrastructure: Strategic lines and tools Institutional Support: Long Term Investor: Relationships with all stakeholders and Long term investments (Equity/debt) to Debt detection of public available funds support infrastructural growth in Italy Instruments Advisory & Promotion: Capital Markets: Institutional Support to Public Sector in structuring Innovative financial solutions to and development of infrastructural Initiatives facilitate new projects projects Consolidation: Equity Resources Attraction: Facilitating deals (Equity/Debt) to support Instruments Activated resources expected to be >4x the consolidation process to create National mobilized resources Champions Financing, advising and promoting infrastructural projects in Italy or abroad, in case of national interest 6
CDP Infrastructure: Latest agreements in line with BP Financing Advisory to PS Guarantees & Equity Promotion Environment, water Evaluate the construction of plants to produce bio-fuels from and waste mgmt. the organic fraction of municipal solid waste (OFMSW) Trento Hospital Schools Public housing Social Infrastructure Hospitals Military buildings “ Città della Salute” Turin Evaluate the construction of plants to produce energy form renewable sources (i.e. photovoltaic) Assessment and joint implementation of innovative projects in digitalization of networks and plants, research and development of hydrogen as an energy source, and energy efficiency Energy and networks Development and construction of wave power stations on an industrial scale, based on Inertial Sea Wave Energy Converter (ISWEC) technology Promotion of Energy Efficiency initiatives, with particular focus on Public Sector buildings Promotion and development of new investments to build urban metro networks and infrastructure for rapid mass transport. Transport and mobility Innovation and development of port facilities and development of sustainable technologies applied to maritime transport 7
CDP Infrastructure: Focus on current investments CDP Commitment Total Funds’ Size EUR Bn GREENFIELD BROWNFIELD # Funds in Later Development 8 Operation period portfolio / Construction phase (2-6 years) (10-25 years) Ramp-up CDP 0.7 Commitment Early development stage (1-2 years) Tot. size of «PPP Italia» Fund 7.4 the funds Small-Mid CEBF Infrastructure Mid-Large Multiplier 10.3x Fund I Fund II Infrastructure … Fund II Fund III 2.6 0.3 4.8 0.5 Financing Advisory to PS Guarantees & Promotion Equity 8
Business Volumes Trend EUR Bn CAGR 2016-2018 Resources mobilized +14% by CDP Group at 1H stage 63 Total activated 58 resources 1 48 +16% 27 24 Third-party resources 20 activated 13 13 Resources mobilized 36 +13% 34 28 by CDP Group 2 2016 2017 2018 2016 2017 2018 1H 2018 1H 2019 Multiplier 3 1.7x 1.7x 1.7x Resources mobilized by CDP Group in 1H 2019 stable vs. 1H 2018, but with a new investment paradigm 9 1. Total activated resources = sum of resources mobilized by CDP Group and resources invested by private parties, local/supranational institutions and international investors as a result of CDP activities 2. Mobilized resources = financial resources made available by CDP Group, directly (ex. loans, bonds, guarantees, equity) or through the management of third party resources 3. Ratio between total activated and mobilized resources
Financial Performance EUR Bn CDP Parent Co. Net Income CDP Group Net Income 4.5 4.3 2.5 1.5 2.2 1.4 1.5 2.2 0.8 2.9 2.9 1.2 1.4 1.4 2017 2018 1H2019 2017 2018 1H 2019 2017 2018 1H 2019 2017 2018 1H 2019 Income attributable Income attributable Full year results Half-Year results to third-parties to the Parent Company 10
CDP Parent Company Sheet Key Figures EUR Bn Assets Liabilities Cash & Cash Equivalents Postal Funding 167 260 (-1% vs. YE2018) (+1% vs. YE2018) Loans Bond Funding 1 100 20 (-1% vs. YE2018) (+6% vs. YE2018) Other Funding 2 Debt Securities 68 73 (+13% vs. YE2018) 1H 2019 (+11% vs. YE2018) Total Assets Equity Portfolio 34 5 Other Liabilities 382 (+2% vs. YE2018) (+3% vs. YE2018) 13 24 Total Equity Other Assets (-4% vs. YE2018) 11 1. Including commercial papers 2. Including funding from banks and customers
New flows in 1H 2019 CDP Parent Company Funding and Credit Rating Stock as of 30 June 2019 EUR Bn Total funding Key Market Funding 353 343 0.25 0.95 93 85 85 103 106 10.4 4.4 157 152 258 EMTN-DIP Bonds EIB-CEB 2018 1H 2019 0.6 1.5 POSTAL SAVINGS 2018 1H 2019 Postal Passbooks 3.0 2.4 Postal Bonds 25% 26% Non-postal Funding 74% 75% Retail Bonds Commercial Papers CREDIT AAA 1 BBB/A-2 BBB/F2 Baa3/P-3 BBB+/S-2 RATING Negative Negative Stable Stable Stable 12 Chinese on- shore rating assigned in the context of the “Panda Bond” issuance plan 1.
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