apimec 4 q06 results
DESCRIPTION
TRANSCRIPT
2006 Earnings
February 12, 2007
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Forward Looking Statement
This presentation contains certain statements that are neither reported financial results or other historical information. They are forward-looking statements.
Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond CCR’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators, the Company's ability to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, inflation and consumer confidence, on a global, regional or national basis.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. CCR does not undertake any obligation to publicly release any revisions to these forward looking statements to reflect events or circumstances after the date of this presentation.
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Highlights
Results
Outlook
Agenda
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5.4% traffic increase in 2006.
Net Revenue totaled R$ 2,145.0 million (+9.8%).
Net Income reached R$ 547.3 million (+9.3%).
26.0% increase in AVI users, totaling 678,000.
Highlights
Operating
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Highlights
Corporative
CCR Day
On November 29, 2006, Metroquatro Consortium signed the Concession Agreement for of the São Paulo Subway Line 4
ISE
On December 20, 2006, AutoBan and ViaOeste signed agreement amendments 16 and 12 with the purpose to rebalance the financial/economic equations in such Agreements. This rebalancing was accomplished by extending the concessions for 104 months in the case of AutoBAn and 57 months in the case of ViaOeste.
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Highlights
Subsequent Events
CCR’s management proposes the payment of supplementary dividends of R$
0.50 per share for the fiscal year 2006, totaling R$ 201.5 million, amount to be
submitted to the approval of the Annual Shareholders’ Meeting. This will
complement the prepayment of dividends of R$ 0.63 on August 31, 2006, totaling
a payout of 83.2% for the fiscal year 2006.
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Results
…operating costs and financial result.
4Q06’s results reflect a combination of factors...
* ViaOeste results are consolidated as of march 2005(1) Total Cost + Administrative Expenses(2) Includes prepaid expenses
R$ MillionFinancial Highlights 4Q05 4Q06 Ch. % 2005* 2006 Ch. %Net Revenue 551.9 567.5 2.8% 1,954.4 2,145.0 9.8%Total Costs (1) (324.9) (334.4) 2.9% (1,155.2) (1,289.3) 11.6%EBIT 227.1 233.1 2.7% 799.2 855.7 7.1%EBIT Margin 41.1% 41.0% 0.0 p.p. 40.9% 39.9% -1.0 p.p.Depreciation e Amortization (2) 82.0 89.6 9.2% 303.1 350.6 15.7%EBITDA 309.1 322.7 4.4% 1,102 1,206.3 9.4%EBITDA Margin 56.0% 56.9% +0.8 p.p. 56.4% 56.2% -0.2 p.p.Net Financial Result 3.1 (50.6) (21.9) (193.6)Net Income 152.6 232.7 52.5% 500.5 547.3 9.3%
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Operating Margins Evolution
(*) Pro forma, excluding concession fees
EBITDA x EBITDA Margin
R$
(mill
ion)
472 571759
1,1021,206
47% 50% 52%56% 56%
2002 2003 2004 2005 2006
Adjusted EBITDA x Adjusted EBITDA margin *
601721
948
1,3431,460
60% 63% 65%69% 68%
2002 2003 2004 2005 2006
R$
(mill
ion)
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Revenues
Toll96,2%
STP 1.5% Other 2.3%
DisQribuição da ReceiQa
96.2%
AutoBAn36%
NovaDutra28%
ViaOeste17%
Rodonorte11%
Ponte4% Other
2%
73% 66% 59% 54%
27% 34% 41% 46%
2003 2004 2005 2006
Eletronic
Cash
Toll Payment Method
Concession BreakdownViaLagos
2%
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Traffic – New Disclosure Standard
As of the 4Q06, CCR is adopting a new traffic reporting criterion to make the
necessary adjustments to adapt to the several changes in the collection rules
implemented in the past (one-way and bidirectional systems) and which may be
repeated in the future.
When consolidating the traffic volume of the several concessionaires, those which
collect tariff in only one-way will have their traffic volumes doubled to adjust to those
which already adopt bidirectional charging. Such procedure is based on the fact that
one-way tariffs already include the return trip costs.
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4Q06 x 4Q05 – Concession Breakdown(Equivalent Vehicles )
Quarterly Historical Evolution(Equivalent Vehicles – million)
Quarterly Traffic
+ 4.4%
5.6%3.8%
1.6%
-0.3%
-15.0%
8.1%
AutoBAn NovaDutra Rodonorte
Ponte Via Lagos
ViaOeste
97 103
136130
4Q03 4Q04 4Q05 4Q06
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Annual Traffic
2006 x 2005 – Concession Breakdown(Equivalent Vehicles )
Annual Historical Evolution(Equivalent Vehicles – million)
+ 5.4%
493 520
397368
2003 2004 2005 2006
2.6%
1.5%
-0.8%
0.1%
-4.5%
5.3%
AutoBAn NovaDutra
Rodonorte
Ponte
Via Lagos
ViaOeste
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CCR’s Management permanent focus.
Net Revenue & Total Costs
Cost as a Percentage of Net Revenue
R$
(mill
ion)
Other: insurance, rent, routine maintenance, marketing, travel and electronic payment.
Third-Party Services: auditing, consulting and shared services.
Cost control...
24% 25% 26%
32% 23%
21% 22%21%
10% 13%14%13%
17%16%
26%
20%10%14%
30%23%
2003 2004 2005 2006
779932
1,1551,289
1,1391,463
1,954
2,145
68%
64%
59%
60%
D&A
Third-Party
Concession Fee
Payroll
Other
Net Revenue
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Short Term Long Term
Indebtedness
In R$
Confortable Net Debt /EBITDA ratio to support new businesses
Net DebtNet Debt / EBITDA LTM
R$
(mill
ion)
R$
(mill
ion) 73.5%
83.7%100%
2003 2004 2005 2006
59%
73%
84%
100%1,225
1,136
1,4831,756
1,128
622
1,161 1,139
1.97
0.821.05 0.94
2003 2004 2005 2006
Gross Debt Net Debt
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...to the Company’s growth nor to refinancing its current portfolio.
Sources of funding are neither a growth boundary...
IGP-M + 9.5%-11%
27%
103.3%-105% CDI
29%
104.5%-106.4% CDI
23%
QJLP + 4.5%-5.0%
21%
OtherBNDES
Debentures Debentures
R$
(mill
ion)
263187
626
279 257
144
2007 2008 2009 2010 2011 After 2011
Indebtedness
Source of Funding Long Term Debt Amortization
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Capital Expenditures
Capital Expenditures Schedule (includes new investments regarding the concessions term extension)
New Capex
CAPEX (R$ MM) 2006 (E) 2006 (A) 2007(E) 2008 (E)AutoBAn 225 158 287 235NovaDutra 91 75 154 139ViaOeste 187 165 193 33Rodonorte 30 44 42 63Ponte 14 9 32 7Via Lagos 3 5 5 3Subway 76 59Other 1 12 4 9 9Consolidated 562 460 799 547(1) Included CCR, Actua, Engelog, Parques and STP
CAPEX (R$ MM) 2007(E) 2008(E) 2009(E) 2010(E)AutoBan 107 153 115 9ViaOeste 85Metrô 76 59
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New Businesses
Brazil is still the main growth driver,However, CCR will look for other markets.
Federal Concessions
State of São Paulo Concessions
Secondary Market
México, Chile and United States
Related Businesses
PPP`s
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Cine Tela BrasilCirco Roda Brasil
200,000 people40,000 people
Road to Citizenship 4,200 educators and 125,000 children
I Use Pedestrian Crossing 2,500 peopleWays to Life Institute 145 students
Road to Health 23,000 truckersHumanized Childbirth 5,100 peopleRodoPac 3,200 driversTruck Driver Health 1,400 driversOdontological Trailler Health
Back HomeSportsday for QualityVolunteers for Life
Collected 24t of food453 donators
Social and Cultural Responsibility Policy
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Ricardo Froes – CFO [email protected]: 55 (11) 3048-5921
Arthur Piotto Filho – [email protected]: 55 (11) 3048-5932
BOVESPA: CCRO3Bloomberg: CCRO3 BZ
Reuters: CCRO3.SA
Investor Relations
2006 Earnings