Yunex & Volocopter: Benetton Holding has ambitious growth targets

Last week, Atlantia also bought an important division from the Siemens group: Yunex Traffic, the world market leader in digital traffic technology, switched to the realm of the Benettons for 950 million euros. Bertazzo wants to make further investments this year. No wonder, since the sale of the Italian motorway (ASPI), which was decided in the summer, will bring in more than eight billion euros.

Bertazzo is particularly proud of the deal with Siemens: Yunex Traffic has a “German heart, 100 years of history and technology”. Siemens was given the guarantee for the 3,000 employees, including for all locations. “But keeping jobs is not enough for me,” says Bertazzo. “My wish is to create new ones.”

The 56-year-old has a tight plan for the latest investment: sales of currently 630 million euros are to exceed the billion mark within five years. Bertazzo calculates that the market for intelligent transport systems (ITS) has recently grown by ten percent a year and will continue to do so in the future. One only has to look at the EU Commission, which has just asked 424 major cities to “implement green mobility plans within a few years”.

Numerous cities already require a congestion charge, such as London or Milan. “Many others will follow suit,” explains Bertazzo. This requires a system of sensors, cameras, number plate recognition. On top of that, software that not only spits out data in real time, but also enables predictions. “Yunex is doing all of that.” The new technologies would inevitably have to be integrated into the physical assets: “That has already happened with residential construction, with offices. Not yet in the transport infrastructure.”

Yunex should also grow in Atlantia’s core markets where the Germans are not yet present: Italy, Spain and France. “These three countries alone make up an ITS market worth 1.5 billion euros,” said Bertazzo. At the same time, the takeover is intended to raise the entire group to a new level, giving it a “technological heart”.

Further investment in Volocopter planned

Atlantia is also focusing on new technologies in Rome-Fiumicino, where the first “vertiports” are being developed with Volocopter, the infrastructure required for air taxis on the ground. “The first electric drone for passengers is scheduled to take off here at the beginning of 2024,” announces Bertazzo.

Just over a year ago, in the most recent round of financing, Atlantia took a stake of almost two percent in the company. “Volocopter is the first company in the world in terms of progressive certifications that can start flying,” says Bertazzo. Further investments are urgently needed for the production of the aircraft. If there is another round of financing, Atlantia is ready: “We would then be happy to participate not only in accordance with our shares, but also with a little more money.”

In order to scale the idea of ​​the vertiports, Bertazzo started the “Urban Blue” project. In addition to Rome, the airports in Bologna, Venice and Nice, operated by Atlantia, are also involved. The project is open to all technologies, the landing areas should not only be approachable for Volocopter drones.

In the long term, Bertazzo believes that the aircraft will also be able to minimize the movement of goods in inner cities, which is booming due to e-commerce. Instead of being transported by diesel truck, the goods could be delivered into the city from sorting points on the outskirts by electric vehicle or drone.

slump in traffic figures

The fact that Bertazzo is looking for new business areas is also born out of necessity: in August 2018, part of the Ponte Morandi motorway bridge near Genoa fell, killing 43 people. Former managers of the operating company ASPI, which is 88 percent owned by Atlantia, are said to have known about the danger of collapse for years. The legal processing is still in full swing, the process only started in the autumn.

When Bertazzo took over at Atlantia in January 2020, he had to come clean at ASPI: 90 percent of the management team was replaced, the bridge was rebuilt, stricter controls and a new maintenance plan were introduced. “We compensated 100 percent of the companies that suffered damage and almost all of the families of the victims,” ​​says Bertazzo. Despite this, this tragic event “will remain in our hearts forever”, especially from a moral point of view.

In June 2021, an agreement was reached with the government on the renationalization of the motorway: A consortium led by the state development bank CDP will take over Atlantia’s shares by this summer at the latest. Purchase price: 8.5 billion euros. Money that Bertazzo has to invest profitably.

In addition, Atlantia’s core business has come under extreme pressure due to the pandemic: motorway and air traffic collapsed drastically. Bertazzo believes that the motorways will recover quickly, but he is less optimistic about the airports: in 2021, the airports operated by Atlantia recorded a 68 percent drop in passengers. “There will be an increase this year, but we still won’t reach the level of 2019.” That won’t happen until 2024, according to his forecasts.

The Benettons increase their stake in Atlantia

Corona also put pressure on the numbers. According to preliminary results, the group’s operating income has increased to around 6.3 billion euros in 2021 – after 5.3 billion in 2020. Adjusted profit is expected to rise to around four billion euros, an increase of 29 percent compared to the previous year. The key figures are pointing upwards, but have not yet reached the level before the pandemic.

What can reassure Bertazzo: The Benettons continue to hold on to their investment. Her family holding Edizione recently even increased its stake in Atlantia from 31 to 33 percent. “That’s around 270 million euros, no peanuts,” says Bertazzo. It is a vote of confidence in the “renewal path that has been taken”.

Above all, the family has trust in the CEO himself: the manager worked for Edizione for 25 years and was always a fireman when things didn’t go well with a holding, for example at Rome Airport, which he managed for three years.

When he was due to reposition Atlantia in January 2020, “there wasn’t a long queue to fill that position,” Bertazzo admits. At that time he was already very familiar with the problems of Atlantia. “All I was missing was Corona, which came on shortly afterwards.” Two years later, with a new direction and a new team, Bertazzo sees himself on the right track.

“There is still a lot to do, but I am pleased to have accepted this challenge.” Only last summer did he present his new strategic plan: The core areas were confirmed, but new business areas were also included: electromobility and renewable energies, rail – and mobility hubs and the very intelligent transportation systems market that Yunex is leading.

Bertazzi sees his holding as a strategic investor, not as a conglomerate. Just 110 people work at Atlantia, the entire group has almost 30,000 employees. “It’s ridiculous to imagine that we can make decisions about all operating companies from Rome and Milan,” says Bertazzi. For him, the independence of the operational management of the various subsidiaries is “untouchable.” A governance principle that has been received just as well by the Yunex management team as by the Siemens Supervisory Board.

Atlantia stock has been on a long slide

The fresh money from the ASPI sale could finally boost the share price, which has been on a long slide. Bertazzo is also looking for new investments: the Spanish motorway operator Abertis, in which Atlantia holds a majority, is always on the lookout for opportunities. According to Bertazzo, if there were offers at airports, Atlantia could invest directly. “Telepass is also examining some operations in Europe.”

There are also many new business areas, such as smart parking, digital payment and electromobility. A deal has already been brought home with Yunex. “I would love to do something different this year.” What exactly? Bertazzo smiles – and then quotes his compatriot Giovanni Trapattoni, ex-Bayern Munich coach: “Never say cat until you’ve got it in the sack.”

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