Atlantia SpA to Acquire Yunex Traffic Austria GmbH Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : Sorry for some noise here. Just quick question regarding -- could you give us what are the margins in the different 4 divisions of Yunex? Second one, why the growth of revenues was just 5% in 2021 versus the market that was up 10% and what happened in the previous years? The third one, in order to reach the target of EUR 1 billion revenues, what are the amount of money that you expect to invest or to go ahead through M&A, in the next 5 years? Unidentified Company Representative Yes. So in terms of growth of the revenues, definitely, the plan that -- of 5% growth is, let's say, a conservative plan but it is based on the countries in which Yunex is currently active, okay? 10% market share is a market share, which is applicable, let's say, on a global scale. And definitely, it takes into account the fact that Yunex is currently not present in countries, which are very important, market size, like Spain, Italy and France, okay? And these are, of course, elements of the potential value creation that we highlighted in our presentation. Thing that in a market of ITS, which is globally around about, let's say, EUR 10 billion to EUR 12 billion worth, Italy, France, Spain, account for a market size of around about EUR 1.5 billion, okay? So this is a market, which is, let's say, currently not in the plan of Yunex, but can be untapped, once Yunex enters into the Atlantia Group, okay? The other question --. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 17, 2022 / NTS, ATL.MI - Atlantia SpA to Acquire Yunex Traffic Austria GmbH Call

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : Okay. But a quick follow-up. As regards the investing, the CapEx per year that you expect, in order to reach those targets. But if we can have an idea what are the ordinary CapEx for this kind of business?

Question: Marcin Karol Wojtal - BofA Securities, Research Division - Analyst : Yes. Can you clarify what percentage of revenue of you next is, let's say, recurrent? So what percentage comes from maintenance and operation? And what percentage comes from maybe more one-off contracts? And also, I was interested to know, how much visibility do you have on this EUR 1 billion revenue in 5 years? Do you have an order backlog, perhaps? Do you have some new contracts coming through already, in the next couple of years? Unidentified Company Representative Yes. So the Service business is around 30% of the overall revenue of Yunex. What is important to say, is that there is a high confirmation rate, let's say, of the customers. Once a cost a contract expires, 85% of customers confirm Yunex for follow-up contracts, okay? There's a kind of -- let's say, they are tied up to Yunex. First, because of the installed base, which makes it easier for the incumbent to remain in the business. But secondly, also because the quality of Yunex is considered to be really best-in-class in this market, okay? Yes. In terms of backlog, Yunex currently has a backlog, which is slightly over EUR 1 billion, okay, already in the books. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 17, 2022 / NTS, ATL.MI - Atlantia SpA to Acquire Yunex Traffic Austria GmbH Call