Baltic Conference Nov 06

Report
Christian Unger
Director
Corporate &
Project Finance
CEE
November 22nd 2006
Bank Austria Creditanstalt AG
Project Finance in Central
& Eastern Europe:
a Commercial Lender's
View
Contents
1
2
BA-CA – Member of UniCredit Group
3
Sector Snapshots and Case Studies
– Transport/Infrastructure
– Energy
– Processing Industries
– Telecommunications
4
International Market Perception
5
Co-ordinates
The Project Finance Market in CEE/ General Overview
November 22nd 2006
Bank Austria Creditanstalt AG
Section 1
November 22nd 2006
Bank Austria Creditanstalt AG
BA-CA – Member of UniCredit Group
UniCredit Group
The new truly
European bank
is present …
 in 20 countries
 where 140,000
employees
 serve more than 28
million customers
 via 7,000 offices
November 22nd 2006
Bank Austria Creditanstalt AG
The new banking group in CEE in detail
(all banks at 100%, as at December 2005)
Banks














Total assets*
(€ m)
BankPekao
KFS / Kocbank
Yapi Kredi
Zagrebacka Banka
Bulbank
Zivnostenska Banka
Unibanka
Unicredit Zagrebacka
Unicredit Romania
Koc Netherland
Yapi Kredi Netherland
Yapi Moskow
Kocbank Azerbaijan
PekaoUkraine
14,528
6,887
14,037
8,358
1,860
1,527
1,266
672
324
591
534
74
27
9
Total
48,919
Banks






IMB
HVB Bank Latvia
HVB Bank Ukraine
HVB Bank Lithuania
HVB Bank Tallin Branch
HVB Greece Branch
2,654
303
147
435
n/a
n/a
Total
3,539
UniCredit
HVB /BA-CA
UniCredit + HVB/BA-CA
* Sum of countries may differ from Total because of netting off of consolidated
item (e.g. Pekao Ukraine is consolidated within Pekao Group; Unicredit Zagrebacka
consolidated within Zagrebacka Banka) and minor companies. All figures at 100%
November 22nd 2006
Bank Austria Creditanstalt AG
Total assets*
(€ m)
Banks














Total assets*
(€ m)
13,200
Bank BPH
3,839
HVB Bank Hungary
4,689
HVB Bank CzechRepublic
2,807
HVB Splitskabanka
625
Banca Tiriac
1,000
HVB Bank Biochim
1,683
HVB Bank Slovakia
1,057
HVB Bank Romania
1,251
BA-CA Slovenia
314
HebrosBank
156
Eksimbanka
379
HVB Central Profit Banka
HVB Bank Serbia+Montenegro 194
n/a
Macedonia (Rep.Office)
Total
31,194
The new UniCredit Group is the undisputed number 1 in CEE
(data as at December 2005(1))
Net Profit
(€ mln)(2)
UniCredit+
HVB+BA-CA
Revenues
(€ mln)
1,163
Assets
(€ bln)
4,982
No of branches
83.7
2,864
(100% of all banks,
including Yapi)
OTP(4)
557 576(3)
Erste
418
SocGen
408
KBC
1,420
1,126
264
Intesa
242
176
16.9 18.0(3)
1,110
826(5)
n.a.
786 875(3)
33.3
19.7
1,660
319
RZB
Citigroup
1,715
1,245
722
34.8
1,017
24.7
16.4
14.8
814
498
237
Source: UCI-FBD Economic Research; numbers calculated using average exchange rate except for Unicredit
1. 100% of total assets and profit after tax for controlled companies (stake > 50%) and share owned for non controlled companies; 100% of branches and employees
2. After tax, before minority interest
3. Including proforma recently acquired Novabanka
4. Including OTP’s subsidiaries
5. Data on total revenues refer to contribution to Intesa’s consolidated results
November 22nd 2006
Bank Austria Creditanstalt AG
Section 2
November 22nd 2006
Bank Austria Creditanstalt AG
The Project Finance Market in CEE
Regional Project Finance Activity 2000 - 2005
250
200
Africa
USD bn
Eastern Europe & FSU
Latin America & Caribbean
150
Australia and Pacific
South East Asia
100
North America
Middle East
Western Europe
50
2000
2001
2002
2003
2004
2005
Source: Project Finance Magazine (Euromoney)
Global Project Finance volume reached USD 175bn in 2005
The Middle East continued to gain importance for Project Finance with a volume of USD 40.8bn and outpaced
Eastern Europe & FSU
November 22nd 2006
Bank Austria Creditanstalt AG
Project Finance Transactions in CEE, Russia & CIS in 2005
CEE
Maritza East
M6
Narodnej Dialnicnej
Advent BTC
HTCC
M5
Muveszetek
Csepeli
GTC
DCT Gdansk
Petrotel Ploiesti refinery
Miskolc Thermal Power
Telemobil
Airport Hotel Prague
Kobanya Heat & Power
Palhalma Biogas
Source: PFI, BA-CA
Country
Sector
Bulgaria
Hungary
Slovakia
Bulgaria
Hungary
Hungary
Hungary
Hungary
Poland
Poland
Romania
Hungary
Romania
Czech Republic
Hungary
Hungary
Power
Infrastructure
Infrastructure
Telecom
Telecom
Infrastructure
Infrastructure
Power
Infrastructure
Infrastructure
Oil & Gas
Power
Telecom
Infrastructure
Power
Oil & Gas
Volume
(USD m)
968
509
493
371
219
194
190
172
170
117
82
60
40
30
17
13
NE
Country
Sector
Azerbaijan International Oil
TAV Havalimanlari
Kupol Gold & Silver
NYK-Sovcomflot LNG
Eregli Iron & Steel
Turk Telekom Privatisation
Siberian-Urals Alum
Koiz Power
Varvarinskoye
Uralkali
Russneft
Kreg Windfarm
Azertrans
Azerbaijan
Turkey
Russia
Russia
Turkey
Turkey
Russia
Turkey
Kazakhstan
Russia
Russia
Lithuania
Azerbaijan
Oil & Gas
Infrastructure
Mining
Infrastructure
Steel
Telecom
Aluminium
Power
Mining
Chemicals
Oil & Gas
Power
Oil & Gas
Volume
(USD m)
750
715
400
320
300
200
150
131
75
65
63
40
30
USD 3.2bn
USD 3.6bn
Project Finance volume in CEE&NE amounted to USD 6.8bn in 2005
This represents only a minor fraction of the project finance loan volume in EMEA and globally (7.3% and 4.9%
respectively)
November 22nd 2006
Bank Austria Creditanstalt AG
Project Finance Transactions in CEE, Russia & CIS in 2005 (ctd.)
Aluminium
2%
Steel
Mining 4%
7%
Romania
2%
Poland
4%
Chemicals
1%
Slovakia
7%
Infrastructure
40%
Telecom
12%
Hungary
20%
Azerbaijan
11%
Russia
15%
Oil & Gas
14%
Power
20%
Turkey
20%
Bulgaria
19%
Source: PFI, BA-CA
Infrastructure and Energy were the most important sectors in 2005
Hungary, Bulgaria, Turkey and Russia accounted for almost ¾ of the volume
November 22nd 2006
Bank Austria Creditanstalt AG
Other
2%
Rules of the Game for Project Finance in CEE
Minimum size for international transactions is an overall project volume of approx. EUR 50m
Financially strong and experienced sponsors required
Local currency loans no longer restricted by legislation, however liquidity for longer tenors still limited in some
countries
Legal documentation mostly based on English law, security documents based on local law
Well prepared projects run better chance of attracting commercial financing (feasibility study, business plan)
Key issues for financing are risk / reward ratios, Basel II etc.
Proper enforcement of requirements under “Equator Principles“ (environmental & social impact analysis)
November 22nd 2006
Bank Austria Creditanstalt AG
Section 3
November 22nd 2006
Bank Austria Creditanstalt AG
Sector Snapshots and Case Studies - Transport/ Infrastructure
Huge investment needs
Quality of a nation’s infrastructure is a key determinant of its ability to grow and to attract FDI
Due to historical underinvestment the quality of CEE infrastructure, especially transportation infrastructure is often
poor
Huge investment needs, however limitations on increasing public sector debt due to relatively low GDP per capita,
IMF, OECD and EU Stability Pact
Should provide for a solid basis for increased use of private sector finance and PPPs for infrastructure projects in
the region
November 22nd 2006
Bank Austria Creditanstalt AG
Closed project financed road transactions in CSEE
Project name
Country
PF Volume/Year
A2 Motorway Project
Poland
EUR 235 m / 2001
A 4 Motorway Project
Poland
EUR 100 m / 2005
Istrian Motorway – Bina Istra
Croatia
EUR 272 m / 2003
Zagreb to Macelj Toll Motorway
Croatia
EUR 312 m / 2004
M6 Toll Motorway
Hungary
EUR 425 m / 2005
M5 Motorway Refinancing and Extension
Hungary
EUR 900 m / 2005
November 22nd 2006
Bank Austria Creditanstalt AG
The inglorious past
Launch of concession programs in the absence of suitable legislation
Uncertainties as to complex and time-consuming expropriation, permit and consent procedures
Lack of sufficiently empowered decision-making bodies/political instability
Full demand (traffic) risk transfer to the private sector (M1/M15)
High level of development costs due to lack of standardized procedures
Easy access to pre-accession funds and EIB/EBRD funding - no need to explore private financing options
November 22nd 2006
Bank Austria Creditanstalt AG
Lessons learned
Establishment of PPP task forces to ensure standardization of planning and implementation procedures on the
national level
Importance of external advisors to government authorities
Focus on smaller pilot projects
Introduction of a more favorable legal environment (“PPP-laws”)
Shift away from the full transfer of demand/traffic risks to the private sector
Focus on availability based revenue/payments mechanisms focusing on availability-, performance- and securitylinked criteria
November 22nd 2006
Bank Austria Creditanstalt AG
Infrastructure sector focus
Transport infrastructure
– Most attractive sector due to large volume deals and promising pipeline
Utilities / Water / Waste
– Focus on water and waste treatment projects on municipal level
– Smaller project volumes
– Local financing components
– Strong IFI involvement, especially from EBRD
Social infrastructure (schools, hospitals, prisons)
– Minor activities due to lack of political will and/or suitable legal environment
– Preparatory activities in Hungary and Czech Republic
– School / Accommodation PPP- projects on muni-level, e.g. in Croatia, Estonia
November 22nd 2006
Bank Austria Creditanstalt AG
Transport infrastructure sub-sectors
Seaports
– Growth in containerised traffic stimulates investments in container terminal facilities
– Medium - sized projects
– In the context of privatisation
– Regional focus: Poland, Russia, Baltics, Turkey, Bulgaria, Romania, Ukraine
Airports
– Capital airports terminal extension financing - mainly corporate, large volume deals, investment grade
borrowers, strong EIB involvement ( e.g. Prague Airport, Warsaw Airport)
– Most prominent project finance type, concession-based transactions have been closed in Turkey (Istanbul,
Ankara, Dalaman)
– Upcoming privatisations offer potential for BOT-type, concession based project finance transactions (e.g.
Bourgas-Varna, Zagreb, Belgrade)
November 22nd 2006
Bank Austria Creditanstalt AG
Transport infrastructure sub-sectors (ctd.)
Railway infrastructure
– National railway companies: financing based on direct or implicit state guarantee
– “Local flavour” (legal environment, politics) limits potential for international syndications
– Privatisation of cargo business, impacts of liberalisation
– No PPP-type railway infrastructure projects (e.g. high-speed railways, metro expansion) realised yet, although
often discussed over years (e.g. Prague Airport railway link)
Road / Motorway projects
– Trend towards traffic risk assumption by the public sector (PFI-type availability based revenue schemes –
M 5 and M 6 Hungary)
– Availability fees provide for predictable stable revenue and cash flow streams
– Perception of greater political risks in SEE -countries should allow for negotiating a lender friendly risk
allocation as compared to mature Western European markets (e.g. permitting, change in law and especially
compensation on concession termination regime)
– Concession periods of 20 to 30 years result in need for long debt maturities of 15 to 20 years +
– Deal Pipeline: D1 Motorway - SK, A2 2nd phase – Poland, D3 Motorway - CZ, Horgos-Pozega Motorway –
Serbia; preparatory activities: Russia, Bulgaria, B&H
November 22nd 2006
Bank Austria Creditanstalt AG
Project Finance / PPP-Facility for the Zagreb – Macelj Motorway in Croatia

28 year concession for design, construction, operation, maintenance and financing of a 60 km toll motorway from Zagreb
to the Slovenian border at Macelj

Project economics benefit from strong commitment of the Republic of Croatia

Financed as PPP on a limited-recourse project finance basis with EUR 60 m equity and EUR 312 m bank debt

Debt financing was structured to benefit to the maximum from risk coverage available from the Federal Republic of Germany and
involves 4 separate facilities
Borrower:
Autocesta Zagreb Macelj d.o.o., Croatia
Sponsor:
Strabag (Walter Bau), Republic of Croatia (non-recourse)
Loan Amount:
EUR 312 m
Type + Term:
EUR 100 m Hermes Facility (tenor 15 years)
EUR 100 m GKA Facility ( tenor 17 years)
EUR 100 m Long-term Commercial facility (tenor 16 years)
EUR 12 m Dual-Currency Working Capital Facility (tenor 16 years)
Security:
Project finance type security package , Hermes + GKA risk cover
Mandated
 Lead Arrangers:
Participants:
November 22nd 2006
Bank Austria Creditanstalt AG
BA-CA , HVB, KfW, HSH
Banca Opi, Calyon, Depfa, Dexia, Erste Bank, Fortis, KBC, Natexis, NordLB, OeVAG,
Zagrebacka Banka
Contractual Overview
Republic of Croatia
(RoC)
Concession
Agreement
Fed. Rep. of
Germany
Traffic Shortfall
Agreement
49 %
51 %
Bank Debt
STRABAG
Bank Consortium
Construction
Contract
Pyhrn Motorway
GmbH
November 22nd 2006
Bank Austria Creditanstalt AG
GKA
Cover
Hermes
Cover
Operation & Maintenance
Agreement
Trans-Ceste doo
Egis
Section 3
November 22nd 2006
Bank Austria Creditanstalt AG
Sector Snapshots and Case Studies - Energy
Obstacles & Opportunities
Obstacles
Many existing operations unprofitable and inefficient
Tariff governance and legislation not always transparent
Long payback periods
Cross subsidies with other energy sources
Insufficient project preparation
Opportunities
Power sector still attractive for many financial institutions
Significant rehabilitation and new generation needs
Environmental policies - Renewable Energy
Innovative financing structures involving multisourcing (ECAs, CO2 certificates, hedging instruments etc.)
November 22nd 2006
Bank Austria Creditanstalt AG
Project Finance for the construction and operation of a Windpark Farm in Sibenik, Croatia

BA-CA as Sole Mandated Arranger and Agent for the first Project financed Wind-Farm in Croatia

Construction of new 11.2 MW wind power capacity using Enercon E48

Location on Dalmatian Coast and developed by German Sponsors

Power purchase agreement with national power company
Borrower:
Vjetoelektrana Trtar-Krtlin d.o.o.,
Loan Amount:
Tranche 1: EUR 10m
Tranche 2: EUR 3m
Term:
Tranche 1: 14 years
Tranche 2: 9 months
Security:
Share and account pledges, Assigment of all project contracts, LOC by sponsors
Sole Mandated
 Arranger:
Bank Austria Creditanstalt AG
Co-Arranger and
Security Agent:
Zagrebacka banka, Zagreb (BACA-group)
Advisors (to banks):
Josip Madirazza (attorney at law), Energetski Institut Hrvoje Pozar (technical advisor)
November 22nd 2006
Bank Austria Creditanstalt AG
Section 3
November 22nd 2006
Bank Austria Creditanstalt AG
Sector Snapshots and Case Studies – Processing Industries
Opportunities for Project Finance
Wood based industries (Pulp, Paper, Wood Processing):
Sponsors trying to benefit from cost advantages (labour, energy) in a highly competitive market with pressure on
margins
International players looking for (more) favourable and secured supply of wood as major raw material
Proximity to growing emerging markets
Large volume expansion & green-field projects to be expected
Metals & Mining:
Growing demand for metals
Shortage of certain raw materials for the metals industry (e.g. alumina, coking coal, etc.)
CIS countries as major resource base for various raw materials
(further) large volume expansion and green-field projects in the metals & mining industry (e.g. bauxite/alumina,
coking coal, gold, etc.) will come up in the near future;
November 22nd 2006
Bank Austria Creditanstalt AG
Project Finance Facility for the construction and commissioning of a paper mill and connected
pulp mill in the Czech Republic


Largest project financing in the paper industry in CEE in 2005
BA-CA as Mandated Lead Arranger and Security Agent of the subject project financing
 The paper mill will produce uncoated publication paper, for both Czech and international printing and publishing houses
 Total investment will be EUR 450m
Borrower:
Labe Papir s.r.o., Czech Republic
Sponsor:
Myllykoski Corporation, Finland
Loan Amount:
EUR 275 m
Term:
13 years, repayment cash-flow based (incl. cash sweep mechanism)
Security:
Pledge on all project assets, credit and cost overrun guarantee provided by
the Sponsor until project completion
Joint Mandated
 Lead Arrangers:
Bank Austria Creditanstalt AG (’BA-CA’), Nordea Bank Finland Plc
Security Agent:
BA-CA
Participants:
HSH Nordbank AG, Den Danske, NordLB-Group, IKB, LBBW, WGZ, Handelsbank
Advisors (to banks):
Hengeler Mueller (legal), Jaakko Pöyry (feasibility study)
November 22nd 2006
Bank Austria Creditanstalt AG
Section 3
November 22nd 2006
Bank Austria Creditanstalt AG
Sector Snapshots and Case Studies - Telecommunications
Sector Focus / Business Opportunities
Sector Focus
Liberalisation of markets, increasing competition, decreasing prices
Mobile penetration rate in CEE/CIS increased substantially in 2005 and reached 65% on average
Highest growth rates in Russia, Ukraine and CIS
Further growth mainly through broadband services (both in fixed line and wireless sectors)
Business Opportunities
Mainly non recourse financing for rollout of broadband networks based on new technologies (WiMax etc.)
November 22nd 2006
Bank Austria Creditanstalt AG
Project Finance Facility for Telemobil S.A.

As first project financing to a CDMA operator in Europe the transaction can be considered as a mile-stone
transaction in the Telecom sector
 Telemobil, operating under the brand name „Zapp“ is Romania‘s youngest mobile operator and the first telecom company in the world
using a digital wireless network based on CDMA2000 technology in the 450 MHz band
 In April 2004 BA-CA and RZB have been mandated to arrange a 5½ year USD 40m Senior Project Finance Facility which has been
structured as a club deal
Borrower:
Sponsor:
Loan Amount:
Telemobil S.A. (Romania), operating under the brand name „Zapp“
Qualcomm and Omnia Holdings LTD
USD 40m Senior Project Finance Facility, thereof:
- USD 35m Term Loan Facility and
- USD 5m Revolving Working Capital Facility
Term:
5 ½ years
Security:
PF-type incl. assignment of selected receivables, account pledges etc.
 Role of BACA:
Other Banks:
Bank Austria Creditanstalt AG „Mandated Lead Arranger“ and „Co-ordinator“
„Mandated Lead Arrangers“
„Facility Agent“
„Security Agent“
Advisors (to banks):
November 22nd 2006
Bank Austria Creditanstalt AG
Bank Austria Creditanstalt AG
Raiffeisen Bank S.A.
Bank Austria Creditanstalt AG
HVB Bank Romania S.A.
Clifford Chance and Badea Associati (legal), Arthur DLittle (market/business plan)
Summary / Outlook
Project Finance stays a central product in order to provide an integrated solution to the needs of clients
Project Finance volume in CEE, Russia & CIS is a small percentage of Project Finance/Structured Finance volume
in EMEA and worldwide
Project Finance in the region will continue to play an important role in selected sectors
While many companies have evolved beyond the Project Finance-stage, Project Finance tools, sector knowledge
and structuring expertise remain important for structured financings of all kinds in the region
Project/Structured Financings are here to stay for years before the industries in the region mature and stabilise to
see the financing mix shift more towards straight corporate lending in the long run
November 22nd 2006
Bank Austria Creditanstalt AG
Section 4
November 22nd 2006
Bank Austria Creditanstalt AG
BA-CA International Market Perception
Recognised by the market
Best Project
Finance House in
CEE
July 2005
Best Loan House
in CEE
July 2005
Best Project Finance
Bank in CEE
November 2005
November 22nd 2006
Bank Austria Creditanstalt AG
Best Project Finance
House
December 2005
International Market Perception
CEE – Project Finance League Table 2005
Number 1 in terms of volume
Rank Group
1
2
3
4
5
6
7
8
9
10
BA-CA (member of UniCredit Group)
Calyon
ING
BNP Paribas
KBC
NIB Capital
MKB
WestLB
DZ Bank
KfW, Commerzbank, BayernLB
Central Eastern Europe & Baltic States, excl. Russia
Data Source: Project Finance International - Thomson Financial
November 22nd 2006
Bank Austria Creditanstalt AG
International Market Perception (ctd.)
Top Mandated Arrangers of Syndicated Facilities
01/01/2005 to 31/12/2005 Eastern Europe (# of deals)
Rank Group
1
2
3
4
5
6
7
8
9
10
BA-CA / HVB Group*
RZB
ING Group
Citigroup
Commerzbank
ABN AMRO
Calyon
Standard Bank
BayernLB
Mitsubishi UFJ
# of deals
Market
Share
55
49
47
46
32
30
30
29
27
27
4.75%
2.69%
4.89%
9.91%
1.91%
9.11%
3.50%
1.62%
3.29%
2.17%
2001
2002
2003
Citigroup
BA-CA/HVB Group JP Morgan
Deutsche Bank
BA-CA/HVB Group
DrKW
ING Group
BA-CA/HVB Group BNP Paribas
WestLB
SG
WestLB
Citigroup
ABN AMRO
ABN Amro
Bayer. LB
Citigroup
SG
KBC
Deutsche Bank
ING
RZB
BNP Paribas
KBC
EBRD
WestLB
Deutsche Bank
Mizuho FG
ING Group
RZB
2004
Citigroup
BA-CA/HVB Group
KBC Group
BayernLB
Sumitomo Mitsui
RZB
HSBC Banking Group
BNP Paribas
ING Group
Mizuho Financial Group
Source: LPC, January 2006
* thereof 40 Mandates granted to BA-CA
BA-CA is an excellent brand name in loan syndication in CEE and through strong relationship with domestic CEE and international
banks ensuring a solid basis for successful placement of transactions.
November 22nd 2006
Bank Austria Creditanstalt AG
Section 5
November 22nd 2006
Bank Austria Creditanstalt AG
Co-ordinates
Contacts for further information
Member of
Martin Handrich
Managing Director
Head of Corporate
& Project Finance CEE
P.O. Box 35, A-1011 Vienna
Member of
Wilfried Senft
A- 1010 Vienna
Schottengasse 6
Phone +43 (0) 5 05 05-42860
Mobile +43(0) 664/515 45 04
Fax +43 (0) 5 05 05-44209
[email protected]
Deputy Managing Director
Head of Debt Structuring
Corporate
& Project Finance CEE
P.O. Box 35, A-1011 Vienna
Member of
Christian Unger
Director
Corporate & Project Finance CEE
P.O. Box 35, A-1011 Vienna
A- 1010 Vienna
Schottengasse 6
Phone +43 (0) 5 05 05-42865
Mobile +43(0) 664/812 2239
Fax +43 (0) 5 05 05-44209
[email protected]
November 22nd 2006
Bank Austria Creditanstalt AG
A- 1010 Vienna
Schottengasse 6
Phone +43 (0) 5 05 05-44213
Mobile +43(0) 664/266 32 56
Fax +43 (0) 5 05 05-44209
[email protected]
Disclaimer
The information in this publication is based on carefully selected sources believed to be reliable but we do not make any representation as to its accuracy or completeness. Any opinions herein reflect our judgement at this date and
are subject to change without notice. Any investments discussed or recommended in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Any reports provided herein are
provided for general information purposes only and cannot substitute the obtaining of independent financial advice. Private investors should obtain the advice of their banker/broker about any investments concerned prior to making
them. Nothing in this publication is intended to create contractual obligations on the UniCredit Markets & Investment Banking Division ("UMIB Division") composed of (the respective divisions of) Bayerische Hypo- und Vereinsbank AG,
Munich, Bank Austria Creditanstalt AG, Vienna and UniCredit Banca Mobiliare S.p.A., Milan and certain of their subsidiaries.
Note to UK Residents:
In the United Kingdom, this publication is being communicated on a confidential basis only to clients of the UMIB Division (acting through Bayerische Hypo- und Vereinsbank, London Branch) who (i) have professional experience in
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The information provided herein (including any report set out herein) does not constitute a solicitation to buy or an offer to sell any securities. The information in this publication is based on carefully selected sources believed to be
reliable but we do not make any representation as to its accuracy or completeness. Any opinions herein reflect our judgement at this date and are subject to change without notice. We and/or any other member of the UMIB Division
may take a long or short position and buy or sell securities mentioned in this publication. We and/or members of the UMIB Division may act as investment bankers and/or commercial bankers for issuers of securities mentioned, be
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Any investments discussed or recommended in any report provided herein may be unsuitable for investors depending on their specific investment objectives and financial position. Any information provided herein is provided for
general information purposes only and cannot substitute the obtaining of independent financial advice. Nothing in this publication is intended to create contractual obligations on any of the entitites composing the Unicredit Markets &
Investment Banking Division. Bayerische Hypo- und Vereinsbank AG, London branch is regulated by FSA for the conduct of investment business in the UK.
Notwithstanding the above, if this presentation/publication relates to transferable securities (as defined in the Investment Services Directive) it is sent to you on the basis that you are a Qualified Investor for the purposes of the
Prospectus Directive or any relevant implementing legislation of a European Economic Area ("EEA") Member State which has implemented the Prospectus Directive and it must not be given to any person who is not a Qualified
Investor. By being in receipt of this publication you undertake that you will only offer or sell the securities described in this publication in circumstances which do not require the production of a prospectus under Article 3 of the
Prospectus Directive or any relevant implementing legislation of an EEA Member State which has implemented the Prospectus Directive.
Note to US Residents:
The information provided herein or contained in any report provided herein is intended solely for institutional clients of the UMIB Division acting through Bayerische Hypo- und Vereinsbank AG, New York Branch and HVB Capital
Markets, Inc. (together "HVB") in the United States, and may not be used or relied upon by any other person for any purpose. It does not constitute a solicitation to buy or an offer to sell any securities under the Securities Act of 1933,
as amended, or under any other US federal or state securities laws, rules or regulations. Investments in securities discussed herein may be unsuitable for investors, depending on their specific investment objectives, risk tolerance and
financial position.
In jurisdictions where HVB is not registered or licensed to trade in securities, commodities or other financial products, any transaction may be effected only in accordance with applicable laws and legislation, which may vary from
jurisdiction to jurisdiction and may require that a transaction be made in accordance with applicable exemptions from registration or licensing requirements.
All information contained herein is based on carefully selected sources believed to be reliable, but HVB makes no representations as to its accuracy or completeness. Any opinions contained herein reflect HVB's judgement as of the
original date of publication, without regard to the date on which you may receive such information, and are subject to change without notice.
HVB may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in any report provided herein. Those reports reflect the different assumptions, views and analytical methods
of the analysts who prepared them. Past performance should not be taken as an indication or guarantee of further performance, and no representation or warranty, express or implied, is made regarding future performance.
HVB and any other entity of the UMIB Division may, with respect to any securities discussed herein: a) take a long or short position and buy or sell such securities; b) act as investment and/or commercial bankers for issuers of such
securities; c) engage in market-making for such securities; d) serve on the board of any issuer of such securities; and e) act as a paid consultant or adviser to any issuer.
The information contained in any report provided herein may include forward-looking statements within the meaning of US federal securities laws that are subject to risks and uncertainties. Factors that could cause a company's actual
results and financial condition to differ from its expectations include, without limitation: political uncertainty, changes in economic conditions that adversely affect the level of demand for the company‘s products or services, changes in
foreign exchange markets, changes in international and domestic financial markets, competitive environments and other factors relating to the foregoing. All forward-looking statements contained in this report are qualified in their
entirety by this cautionary statement.
UniCredit Markets & Investment Banking Division
Bayerische Hypo- und Vereinsbank AG, Munich; UniCredit Banca Mobiliare S.p.A., Milan; Bank Austria Creditanstalt AG, Vienna; CA IB Corporate Finance GmbH; CA IB International Markets AG
November 22nd 2006
Bank Austria Creditanstalt AG

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