Atlantia SpA Q4 2018 Earnings Call Transcript

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

Question: Nicol= Pessina - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : I would ask 3 questions. The first one is on dividends. I would like to know what your plan for dividend payments for the next few years. Second question on the situation in Genoa. Do you expect to have to pay additional costs on top of the EUR 500 million you have already factored into these 2018 numbers? And in particular, I'm referring to the Court of Auditors in Italy that mentioned potential compensation costs of up to EUR 1 billion. The last question is about the AP-7, if you have any updates from the Spanish Supreme Court ruling -- about the Spanish court ruling that you can share with us.

Question: Olivia Rosalind Peters - Macquarie Research - Analyst : I've got two questions, please. My first question is could you provide us with an update on the investigation into the collapse of bridge? I'm sorry to ask again. But last time I heard, the concrete was being sent for analysis. So just where we are in that process, please? And my second question is, obviously, you're talking about opening up a share -- your capital to different shareholders below the Atlantia level. And last time you did that, you obviously, went and bid for Abertis. You obviously, potentially talking about ADP, could you give as some idea of the size of the transaction you're looking for and what your main objective is? Obviously, last time it was to diversify out of Italy and reduce your cost of capital, is that still one of your main strategic aims?

Question: Olivia Rosalind Peters - Macquarie Research - Analyst : If I could just follow up very quickly. You keep on insisting on the U.S. and roads in urban areas. One thing you've ruled out in the past is managed lanes. Are you changing your opinion on these assets? Am I to read that into it or not?

Question: Olivia Rosalind Peters - Macquarie Research - Analyst : Managed lanes. You keep on saying urban, there urban areas in the U.S. Are you look -- would you examine opportunities in the managed lanes space? In the past, you've ruled out an interest in those assets.

Question: Stephanie Fabienne D'Ath - RBC Capital Markets, LLC, Research Division - Analyst : The first one is on your relationship with the government regarding the talks on ASPI and the tariffs going forward, especially the first 6 months free. And the second question is on insurance, in particular, regarding the bridge collapse, could you maybe explain a little bit how you're insured against that? And my third question is just to understand the increase in provision from about EUR 345 million to EUR 500 million is entirely due to the collection of the constructure project, which is more expensive than what you have factored in?

Question: Stephanie Fabienne D'Ath - RBC Capital Markets, LLC, Research Division - Analyst : If I just may follow up on that one. I understand you appealed the fact that you should have been entitled to select the constructor for the reconstruction, and it is undergoing administrative courts. I think on that one, you should have a better time line as it is usually shorter. So when should we hear back from the legal challenge there, please?

Question: Stephanie Fabienne D'Ath - RBC Capital Markets, LLC, Research Division - Analyst : But didn't you appeal the choice of your right was to basically tender and the Commissioner decided you didn't have that right?

Question: Stefano Gamberini - Equita SIM S.p.A., Research Division - Analyst : Four questions, if I may. First of all, regarding the asset rotation. You stressed that you can start with asset rotations of your controlled companies. What could be your view most likely that could be opened first? And also if you can give us an idea of the timing? Are was speaking of 12 months or you need more time to open the capital to these assets? Second regarding Telepass. You recorded a very strong performance this year and you expect further improvement and further synergies with Abertis. Could you elaborate a little bit more about these synergies? And when you expect this could be reached in the future? The third regarding the new tariff system and that it is under consultation by the regulator. Could you share with us what is your thought about this new system if you think that this could be applied to ASPI or not? And finally, regarding Abertis and the new Atlantia group after this transaction and the agreement with [also with ACS] what are the area that you expect the most value creation for Atlantia right now compared to the previous situation?

Question: Nicol= Pessina - Mediobanca - Banca di credito finanziario S.p.A., Research Division - Analyst : Well, just a quick follow-up questions. On Spain, I wonder what makes you so confident there will be retenders of expiring concessions in a few years' time. If I look at what the government did in the past year or 1.5 years, I see that the -- I see exactly the opposite. So I wonder where your optimism comes from. Second question on Brazil, if you plan to take part in the next auctions for new concessions? A year ago, you were quite skeptical about the returns. So I wonder if anything has changed there. And finally, on ADR, you talk about the CapEx to upgrade existing assets, I wonder if you could give us an update about Fiumicino North?

Question: Charles Maynadier - Kempen & Co. N.V., Research Division - Analyst : Just two follow-ups for me. First one on the ADP prioritization. You mentioned that the structure is too complex. Now could you elaborate on that? And there is no peripheral structure you'd feel more comfortable with? And the second one is going back on potential divestments. So assuming that you had interest -- investment interest on all your assets and not taking to account the price and the status of proceeds, which asset would you likely sell first?