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CCR’s ability to control or estimate precisely, such as future market conditions,
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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.
Agenda
09:00 a.m. Welcome – Renato Vale
09:10 a.m. The Sector Today – Márcio Batista
09:45 a.m. Traffic Trends – Arthur Piotto
10:25 a.m. Coffee Break
10:45 a.m. Evaluation of Current Portfolio – Ricardo Froes
11:20 a.m. Perspectives for CCR – Leonardo Vianna
12:00 p.m. Q&A Session
12:30 p.m. Lunch
The Sector Today
Tolls: Problem or solution?
• Transportation infrastructure sector requires huge investments
• Restrictions on government budgets
• Greater efficiency of private sector
• Funding available from sector players and international investment funds
Global Tendency
GDP
US$ billion
Population
million
Road network
thousands of km
Fleet
million
Source: US Bureau of Economics Analysis, team analysis
1,551California
884Texas
599Florida
336NorthCarolina
329Virginia
35.9
22.5
17.4
8.5
7.5
273
486
194
164
115
29
15
14
6
6
USA
. NC. CA
. X. FL
. VA
Florida
Greenfield ProjectExtension
km
Investments
US$ MM
Libramiento de La Piedad and Access to México –Guadalajara Expressway
50 67
Compostela – Puerto Vallarta 104 324
Libramiento de Chihuahua 41 63
Total 195 454
Mexico – Federal Concession
Short-term – estimated projects
Greenfield ProjectExtension
km
Investments
US$ MM
Entronque Prefiférico Guadalajara – Entronque Ixtlahuacan del Río 30 114
Libramiento de Playa del Carmen 20 45
Libramiento de Ciudad Juárez 15 45
Salamanca - León 85 182
Libramiento de Puerto Vallarta 20 45
Cuapiaxtla - Cuacnopalan 74 132
Libramiento Sur de Puebla 45 91
La Venta – Colegio Mulitar 22 364
Colegio Militar - Chalco 40 318
Indios Verdes – Santa Clara 12 136
Puente Internacional Río Bravo - Donna 0.2 18
Total 363.2 1,490
Mexico – Federal Concession
Midterm - projects in preparation
Upgrade ProjectExtension
km
Investments
US$ MM
Upgrade Maintenance
Mitla – Entronque Tehuantepec 163 364 117
Zacatecas - Saltillo 213 109 386
Total 376 473 503
Mexico – Federal PPS
Short-term – estimated projects
Upgrade ProjectExtension
km
Investments
US$ MM
Upgrade Maintenance
Apizaco - Calpulalpan 51 109 79
Macuspana – Campeche / Quintana Roo state border
434 129 142
Arriaga – La Ventosa 137 82 106
Salina Cruz - Huatulco 146 200 266
Acayucan – La Ventosa 170 182 260
Total 938 448 853
Mexico – Federal PPS
Mid-term – estimated projects
Greenfield ProjectsExtension
km
Investments
US$ MMExisting Expressway – Sale
• Atizapán - Atlacomulco
• Ampliación Chamapa - Lechería107 455
• Chamapa - Lechería
• Atlacomulco - Maravatío
• Libramiento de Mazatlán
• Libramiento de Culiacán
• Corredor Turístico de Los Cabos
88 300• Culiacán - Mazatlán
• San José – Cabo San Lucas
• Libramiento Sur de Reynosa
• Allende – Juaréz
• Sabinas – Colombia
(8 works)
219 487
• Reynosa – Matamoros
• Puente Int. Reynosa / Pharr
• Puente Los Tomates
• Monterrey – Nuevo Laredo
• Cadereyta – Reynosa
306 km / 2006 revenues of US$ 102 million
Total 414 1,242
Mexico – asset monetization (FARAC)
Short-term – estimated projects
Ciudad Hidalgo
Salina Cruz
Cancún
Mexicali
La Paz
Guadalajara
Tepic
Tuxtla Gutiérrez
Chetumal
Mérida
Campeche
Culiacán
Durango
Saltillo
CiudadVictoria
ZacatecasAguascalientes
Jalapa
San Luis Potosí
Querétaro
Monterrey
ChilpancingoOaxaca
ColimaVilla Hermosa
Hermosillo Chihuahua
México D.F.PueblaCuernavaca
Tijuana
Nogales Ciudad Juárez
Nuevo Laredo
Matamoros
Piedras Negras
Mazatlán
Manzanillo
Lázaro Cárdenas
Acapulco
TampicoProgreso
Tuxpan
Veracruz
Atlacomulco
Huatulco
Ecuandureo
MoreliaToluca
Torreón
Brownfield: Chamapa – Lechería / Atlacomulco - Maravatío
Construction: Atizapán – Atlacomulco / Ampliación Chamapa - Lechería
Brownfield: Culiacán - Mazatlán
Construction: Libramiento de Mazatlán / Libramiento de Culiacán
Brownfield: San José – Cabo San Lucas
Construction: Corredor Turístico de Los Cabos
Mexico – asset monetization (FARAC 2)
Ciudad Hidalgo
Salina Cruz
Cancún
Mexicali
La Paz
Guadalajara
Tepic
Tuxtla Gutiérrez
Chetumal
Mérida
Campeche
Culiacán
Durango
Saltillo
CiudadVictoria
ZacatecasAguascalientes
Jalapa
San Luis Potosí
Querétaro
Monterrey
ChilpancingoOaxaca
ColimaVilla Hermosa
Hermosillo Chihuahua
México D.F.PueblaCuernavaca
Tijuana
Nogales Ciudad Juárez
Nuevo Laredo
Matamoros
Piedras Negras
Mazatlán
Manzanillo
Lázaro Cárdenas
Acapulco
TampicoProgreso
Tuxpan
Veracruz
Atlacomulco
Huatulco
EcuandureoMorelia
Toluca
Torreón
Mexico – asset monetization (FARAC 3)
Greenfield ProjectsExtension
km
Investments
US$ MMExisting Expressway - Sale
• Xoxtla - Tlaxcala
• Libramiento de Tlaxcala27 86
• San Martín Texmelucan -Tlaxcala
• Libramiento de Champotón
• Champotón – Entronque Autopista
• Libramiento de Villahermosa
• Ent. Reforma – Ent. Lib. Villahermosa
77 132• Champotón – Campeche
• Agua Dulce - Cárdenas
• Libramiento Poniente de Morelia
• Palmillas – Apaseo
• Libramiento de Uruapan
• Ampliación Pátzcuaro - Uruapan
204 491
• Pátzcuaro – Uruapan
• Uruapan – Nueva Italia
• Nueva Italia – Lázaro Cárdenas
• Libramiento Oriente de Querétaro
• Libramiento Sur de Guadalajara
• Libramiento de Tepic136 364 • Guadalajara - Tepic
Mexico – asset monetization
Mid-term – other estimated projects
Greenfield ProjectsExtension
km
Investments
US$ MMExisting Expressway - Sale
• Libramiento de Hermosillo
• Libramiento de Ciudad Obregón
• Modernización Estación Don -Nogales
550 364• Estación Don - Nogales
• Cuautla - Alpuyeca
• Libramiento de Cuernavaca
• Libramiento de Chilpancingo
• Libramiento de Acapulco
• Modernización la Pera - Cuautla
158 636• Cuernavaca - Acapulco
• La Pera - Cuautla
• Tuxpam – Tampico y Libs.
• Laguna Verde – Gutiérrez Zamora251 582
• Córdoba - Veracruz
• Gutiérrez Zamora - Tihuatlán
Mexico – asset monetization
Mid-term – other estimated projects
The Sector Today
Main concession models
Greenfield BrownfieldProject without
demand risk
Greater demand riskEasier to estimate traffic
Construction focus
More accelerated cash flow growth
More stable cash flowPayments to the concessionaire
by the granting power
Construction works risk Lower project execution risk
The Sector Today
Leading global players – Market Value US$ billion*
21,987 21,437
12,553
9,118 8,8737,154 6,785 6,293
5,179 4,882 4,686
1,023 570
Autostrade
Abertis
Sacyr Vallehermoso
Cintra
Brisa
CCR
MacquarieInfrGroup
TransurbanGroup
ZhejiangExpressway
PLUS
JiangsuExpressway
OHL Brasil
Bangkok Expressway
* 11/16//2007
• Existing concessionaires: 37, before the federal auction
• Location: states of Rio Grande do Sul, Paraná, Minas Gerais, SãoPaulo, Rio de Janeiro, Espírito Santo, Bahia and Pernambuco.
6% - 9,834 km granted to private enterprise
• Total paved highways: 196,094 km
The Sector Today in Brazil
Maritime 13.7%
Rail 19%
Pipeline 5%
Means of Transportation in Brazil
Rail 1.4% Air 2.4 %
Road 96.2%
Rail 24.0%
Road 59.0%
Maritime 13.0%
Air 0.3%
Pipeline 3.7%
Passenger Transport Cargo Transport
Road 62%
Air 0.3%
Rail 1%
Air 2%
Road 96%
Subway 1%
2000
2006
The Sector Today in Brazil
Source: Ministry of Transport 2006
Source: National Transport Confederation (CNT)
The Sector Today in Brazil
Leading players in Brazil
3,226
1,452993 913
430 367 235
OHL CCR Univias Ecorodovias Civilia Triunfo Encalso
CCR
Others 64%36% *
* Estimated shares after federal highway auction
CCR
Others
58%42%
1,452
1,147993 913
430 367235
CCR OHL Univias Ecorodovias Civilia Triunfo Encalso
Before
After
In km Revenues
Qualified portfolio
The Sector Today
Success factors
• Clearly defined strategy
• Differentiated access to capital market
• Service excellence
• Ability to foresee trends and develop business
Traffic Trends Historical Performance and Current Scenario
Characteristics of the CCR highways
AutoBAn:
• Cars: commuter traffic between 2 major cities (São Paulo and Campinas); weekend tourism traffic (areas of Valinhos, Vinhedo, Campinas, Cabreúva, etc.).
• Commercial vehicles: general bulk cargo, agricultural crops from São Paulo and other states; channel for export outflow (Santos and São Sebastião); automobile makers (Honda, Toyota); distribution centers (VW, C. Bahia, L. Marabrás, M. Luiza, Natura, etc.).
• 3Q07 – 38.4% of total toll revenue.
CCR System Traffic Growth
The great variety of products transported “shields” the concessionaire, making it less vulnerable to sector crises
AutoBAn - Characteristics of the highway• Growth in the last 12 months = 6.9%
• Growth between Jan. and Oct. 2007 = 7.2%
• Growth from Oct. 2006 to Oct. 2007 = 11.2%
• Traffic Mix = 43.7% light vehicles / 56.3% commercial vehicles
CCR System Traffic Growth
Annual Traffic EvolutionAutoBAn
2.2%
20.2%
10.9%
0.5%
6.5% 7.2%
2.6%
9.0%
2000 2001 2002 2003 2004 2005 2006 2007
Monthly Traffic VariationAutoBAn
5.8%6.6%
4.5% 4.7%5.4%
6.1%7.0%
7.7%
5.9%
7.9%
11.2%
8.2%7.3%
Oct/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Oct/07
Characteristics of CCR highways
ViaOeste:
• Cars: commuter traffic between the regions of Sorocaba, Alphaville and São Paulo; weekend tourism traffic (regions of Itu, Cotia, Ibiúna, Indaiatuba, Cabreúva, AraçoiabaSerra, etc.).
• Commercial vehicles: general bulk cargo, agricultural produce from São Paulo and other states; automobile maker (Toyota); distribution centers (GM, Friboi, Eurofarma, etc.); channel for export outflow (Santos).
• 3Q07 – 16.9% of total toll revenue.
CCR System Traffic Growth
The great variety of products transported “shields” the concessionaire, making it less vulnerable to sector crises
ViaOeste - Characteristics of the highway• Growth in the last 12 months = 7.7%
• Growth between Jan. and Oct. 2007 = 7.7%
• Growth from Oct. 2006 to Oct. 2007 = 10.7%
• Traffic Mix = 50.7% light vehicles / 49.3% commercial vehicles
CCR System Traffic Growth
Annual Traffic EvolutionViaOeste
12.0%
14.3%
8.3%
-1.5%
4.1%
7.7%5.3%
5.6%
2000 2001 2002 2004 2005 2006 20072003
Monthly Traffic VariationViaOeste
9.0%9.4%
6.0%
8.0%7.2%
7.6%8.3%
9.6%
4.9%
8.3%
10.7%
7.3%
5.3%
Oct/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Oct/07
CCR System Traffic Growth
Characteristics of CCR highways
NovaDutra:
• Cars: commuter traffic between 3 major cities (São Paulo, Rio de Janeiro and São José dos Campos); weekend tourism traffic (Campos do Jordão, Serra da Mantiqueira and the coast of São Paulo state)
• Commercial vehicles: general bulk cargo; automobile makers (GM, VW, Citroën/Peugeot) and CSN.
• 3Q07 – 27.0% of total toll revenue.
The great variety of products transported “shields” the concessionaire, making it less vulnerable to sector crises
CCR System Traffic Growth
NovaDutra - Characteristics of the highway• Growth in the last 12 months = 4.4%
• Growth between Jan. and Oct. 2007 = 4.6%
• Growth between Oct. 2006 / Oct. 2007 = 8.5%
• Traffic Mix = 27.8% light vehicles / 72.2% commercial vehicles
Annual Traffic EvolutionNovaDutra
0.6%
4.9%
-0.3% 0.0%
4.0%
1.6%
9.0%
2000 2001 2002 2004 2005 2006 20072003
0.6%
NovaDutra
4.6%5.0%
2.1%
0.0%
1.4%
2.8% 2.9%
5.1%5.4%
6.5%
8.5%
6.1%
0.8%
Oct/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Out/07
Monthly Traffic Variation
CCR System Traffic Growth
Characteristics of CCR highways
RodoNorte:
• Cars: commuter traffic between the regions of Curitiba, Ponta Grossa, Apucarana, Londrina, etc.
• Commercial vehicles: agricultural produce from Paraná and other states; channel for export outflow (Paranaguá, S. Francisco do Sul and Itajaí).
• 3Q07 – 11.9% of total toll revenue.
The variety of outflowed products is growing, becoming less dependent on the agriculture and livestock industry
CCR System Traffic Growth
RodoNorte - Characteristics of the highway• Growth in the last 12 months = 7.9%
• Growth between Jan. and Oct. 2007 = 9.3%
• Growth from Oct. 2006 to Oct. 2007 = 16.7%
• Traffic Mix = 21.6% light vehicles / 78.4% commercial vehicles
Annual Traffic Evolution
RodoNorte
-7.1%
5.9%6.5%
-2.6%
9.3%
-0.8%
7.1%
2000
2001 2002 2004
2005
2006 20072003
4.8%
Monthly Traffic VariationRodoNorte
2.8%
0.1%
1.9%
11.4%
7.5%
2.0%
4.8%
14.6%
8.6%
14.2%
16.7%
9.8%
3.4%
Oct/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Oct/07
Characteristics of CCR highways
Ponte:
• Cars: commuter traffic between 2 metropolitan areas: Rio and Niterói; weekend tourism traffic (Lagos region)
• Commercial vehicles: light commercial vehicle traffic for urban distribution
• 3Q07 – 3.8% of total toll revenue.
CCR System Traffic Growth
The traffic behavior for this concessionaire shows a moderate growth potential
Rio-Niterói - Characteristics of Ponte• Growth in the last 12 months = 2.1%
• Growth between Jan. and Oct. 2007 = 2.6%
• Growth from Oct. 2006 to Oct. 2007 = 5.3%
• Traffic Mix = 83.0% light vehicles / 17.0% commercial vehicles
CCR System Traffic Growth
-0.8%0.6%
Annual Traffic EvolutionPonte
-2.0%
5.0%
-1.4% -1.3%
2.6%
0.1%
1.0%
2000
2001 2002 20042005
2006 2007
2003
0.5%
Monthly Traffic VariationPonte
Oct/06
-0.7% -2.0%
4.7%
1.7%1.9%
6.3%
1.1%
4.3%5.3%
3.5%
-1.1%
Dec/06 Feb/07
Apr/07 Jun/07 Aug/07 Oct/07
ViaLagos:
• Cars: weekend tourism traffic
• Commercial vehicles: light commercial vehicle traffic to supply the local businesses; heavy commercial vehicle traffic to cater to the oil industry in Macaé region.
• 3Q07 – 2.0% of total toll revenue.
The concessionaire's traffic is becoming increasingly less dependent on local tourism, and showing a greater adherence to
the evolution in services and in the oil industry
Characteristics of CCR highways
CCR System Traffic Growth
• Growth in the last 12 months = 0.4%
• Growth between Jan. and Oct. 2007 = 5.0%
• Growth from Oct. 2006 to Oct. 2007 = 20.3%
• Traffic Mix = 79.1% light vehicles / 20.9% commercial vehicles
ViaLagos - Characteristics of the highway
CCR System Traffic Growth
Annual Traffic EvolutionViaLagos
-7.5% -1.1% 0.3%
9.1%
5.0%
-4.5%
7.3%
2000
20012002
2004 2005 2006 20072003
2.1%
Monthly Traffic VariationViaLagos
-7.8% -30.0%-3.8%
21.5%
-11.8%
7.0%
1.5%
8.2%
-1.9%
17.9% 20.3%
5.7%
-7.8%
Oct/06 Dec/06
Feb/07 Apr/07 Jun/07 Aug/07 Oct/07
• Growth in the last 12 months = 6% • Growth between Jan. and Oct. 2007 = 6.5%• Growth from Oct. 2006 to Oct. 2007 = 10.5%• Traffic Mix = 43.5% light vehicles / 56.5% commercial vehicles
CCR Consolidated - Characteristics of CCR highways
CCR System Traffic Growth
Annual Traffic EvolutionCCR
1.8%
7.8%
0.3%
2.9%
6.5%
2.3%
7.1%
2000 2001 2002 2004 2005 2006 20072003
10.2%
Montly Traffic VariationCCR
5.0% 5.0%
3.3%
4.7% 5.1% 5.1%5.7%
8.2%
5.4%
8.0%
10.5%
7.2%
4.0%
Oct/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Oct/07
Comparison between growth in GDP and Traffic
CCR Consolidated - Historical Evolution & Elasticity
80
90
100
110
120
130
140
150
160
4Q99
2Q00
4Q00
2Q01
4Q01
2Q02
4Q02
2Q03
4Q03
2Q04
4Q04
2Q05
4Q05
2Q06
4Q06
2Q07
GDP TRAFFIC EQUIVALENT VEHICLES
CCR System Traffic Growth
4Q99 = BASE 100
Annual
GDP (1)Year2000 4.3% 1.8%2001 1.3% 10.2%2002 2.7% 7.8%2003 1.2% 0.3%2004 5.7% 7.1%2005 2.9% 2.9%2006 3.7% 2.3%2007 (2) 4.9% 6.5%
Accumulated 29.9% 45.6%
1.5Elasticity
VEQ CCR
(1) IBGE – new methodology
(2) Jan-Oct
Traffic x GDP –Global View
Source: OECD Factbook 2007: Economic, Environmental and Social Statistics - ISBN 92-64-02946-X - © OECD 2007
Traffic Elasticity / GDPCountry 2004Austria 1.7
Belgium 0.8
Czech Republic 2.0
Denmark 0.5
Finland 0.5
France 0.7
Greece 1.6
Italy 1.2
Holland 0.8
Norway 0.7
Spain 1.1
Sweden 0.4
Switzerland 1.3
United Kingdom 0.5
United States 0.6
Traffic Elasticity / GDPConcessionaire 2004APRR (France) 0.5
ASF (France) 1.6
Sanef (France) 1.1
Autostrade (Italy) 1.7
Brisa (Portugal) 1.6
Abertis (Spain) 1.3
Cintra (Spain) 2.5
Motorization Index – Global View
Source: Anfavea
Inhabitants per vehicle
5.8 5.7
1.31.9
1.7
3.2
7.9
1.7 1.51.2
1.7 1.7
4.8
9.4
8
France SouthKorea
MexicoCanadaAustralia USA BrazilArgentina
1.7 1.5
Italy
5.71996
2005
If the same trend observed in other countries reflects in Brazil, traffic x GDP elasticity ratio can increase significantly
9.4
9.19.0 8.9 8.8
8.68.4 8.4 8.2 8.0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Source: Anfavea
Inhabitants per vehicle - Brazil
Motorization Index – Historical Evolution
The higher credit offering for the automobile industry seems to be the main driver for the decrease in this ratio
Domestic Sales
Automobile fleet expansion potential
Source: Ipeadata
1,2991,428
1,032956
1,1541,264 1,245
1,166
1,363 1,4231,565
1,418
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Jan-Sep2007
The number of potential clients are showing strong expansion
• Characteristics of our highways minimize impacts from sector crises.
• Historical traffic elasticity is 1.5x Brazil GDP.
• Current macroeconomic scenario suggests average annual GDP growth of 5%
over the next few years.
• Favorable path in the motorization index could have a strong impact on traffic
indicators.
• Expansion of toll-road sector should generate greater confidence (term and
reach) of highway sector as a whole, including in our concessions.
• Main driver of the recent acceleration in traffic growth is the stronger economic
growth in the regions where our toll roads are located.
Conclusions
Evaluation of the Current Portfolio
Evaluation of the Current Portfolio
How to extract value from our portfolio
1. Traffic
2. Financing
• Overview
• Releveraging
• Cost of capital
3. Operating efficiency
• Operating costs
• Capital expenditure
4. Perpetuity
Traffic
Exercise => What is the value creation when we adopt more optimistic assumptions?
Historical growth: 1.5x GDP
Average market assumption: 1.0x GDP
Alternative Scenario:Future growth = historical elasticity (1.5x GDP)
Traffic
Estimated traffic evolution
* source: Brazilian Central Bank – market estimates 11/16/2008
R$ 3.0 billion
R$ 7.6/share
Base Scenario Alternative Scenario
2008 2009 2010 2011 From 2012
GDP* 4.4% 4.2% 4.2% 4.0% 4.0%
Alternative Scenario 6.5% 6.3% 6.3% 6.1% 6.0%
How to extract value from our portfolio
1. Traffic
2. Financing
• Overview
• Releveraging
• Cost of capital
3. Operating efficiency
• Operating costs
• Capital expenditure
4. Perpetuity
Evaluation of the Current Portfolio
Importance of financing
Key factors for value creation:
• To maximize distribution of dividends to shareholders for investment in new projects
• Financial engineering as driver of competitiveness
Government’s Goal Investor’s Goal
To minimize project’s IRR To maximize shareholders’ IRR
To optimize capital structure
• Hiring a financial advisor
• Drawing up the financial structure
� To maximize IRR (value and quality)
� To minimize shareholder commitment
� Payback
� Rating
• Items to be considered:
� Flow diversity
� Ratio: Debt / (Debt + Equity)
� Ratio: Debt / EBITDA
� Coverage Ratios
� Reserve account
� Interest coverage
� Instruments
� Markets
� Currency / Hedge
� Guarantees
Financing process
History of CCR in Project Finance
1996 BNDES/IFC R$ 170 MM and US$ 115 MM
1996 BNDES R$ 38 MM
1999 BNDES/IBD R$ 195 MM and US$ 92 MM
1999 BNDES/IBD R$ 26 MM and US$ 29 MM
2000 BNDES/BID/ IFC R$ 220 MM and US$ 161 MM
2001 BNDES R$ 255 MM
TOTAL R$ 904 MM and US$ 374 MM
Debt Restructuring
2004 180 Debentures
2006 510 Debentures
2007 650 Debentures
Amount (R$ MM)Amount (R$ MM) ModalityModalityIssuerIssuerYearYear
A continuous process...
• Multilateral prepayment
• 100% local currency
• Maturity extension
• Dividend anticipation
ViaQuatro – 2007
• Recently we entered into a Project Finance agreement with IDB for the acquisition of trains and systems – US$250 MM
• The process to choose the lender was very competitive and we received several proposals:
Recent Operations
Lender Modality
BNDES Multilateral
IDB + Commercial Banks Multilateral
HSBC + BEI + NEXI Multilateral / ECA
Deutsche Bank Project Bond in USD
Citibank Debentures in R$ with IDB guarantee
Korea Eximbank + BNP Paribas + COFACE Multilateral / ECA
Korean Development Bank Multilateral
KFW Multilateral
JBIC Multilateral
Farac – Mexico – 2007
Recent Operations
16 years bullet
CCR Goldman / ICA (winning consortium)
Type of Loan Long Term – Capital marketsBridge loan (syndicated with banks) with take-out (bonds – capital markets)
Loan Amount US$ 3.6 Bn US$ 3.4 Bn
� Payment US$ 2.8 Bn US$ 3.1 Bn
� Liquidity US$ 800 MM US$ 283 MM
Take-out 6 months 7 years
Debt Cost M-BONO + 1.75% TIIE + 1.65% (years 1 and 2)
Term 26 years 7 years pre-payable anytime
Currency Pesos Pesos
Grace Period
Current Portfolio Appreciation
How to extract value from our portfolio
1. Traffic
2. Financing
• Overview
• Releveraging
• Cost of capital
3. Operating efficiency
• Operating costs
• Capital expenditures
4. Perpetuity
Releveraging: value generation for CCR
It allows an extraordinary distribution of dividends anticipating future cash flows
It generates value for
shareholders with
consequent improvement
of IRR
It provides capital for
investment in new projects
It benefits the project for a possible drop in the interest
rate
Breakdown Debt Amortization
321
174
276
387379338
56
2007 2008 2009 2010 2011 2012 After 2012
CCR’s Debt Breakdown
43%39%
6% 12%
Debentures - IGP-M +(7.6%- 11%)
Debentures - CDI103.3% -105%
Other - CDI104.5% - 107.3% BNDES - TJLP +
(4.5% - 5.5%)
As of 09/30/2007
Current assumptions (market average):
D / EV = 40%
Kd = 12.2% in R$
WACC = 9.1% in US$
Leverage and interest rate: impact on value
Exercise => What is the value creation when we adopt more optimistic assumptions?
Leverage and interest rate: impact on value
Scenario A Scenario B
R$ 650 MMR$ 1.6/share
Selic Kd D / EVValue Added (R$ MM)
Value per share(R$ MM)
Scenario A 11.1% 12.2% 40.0%Scenario B 9.0% 9.7% 40.0% 650 1.61Scenario C 9,0% 9,7% 50,0% 1.353 3,36
Current Porftolio Appreciation
How to extract value from our portfolio
1. Traffic
2. Financing
• Overview
• Releveraging
• Cost of capital
3. Operating efficiency
• Operating costs
• Capital expenditure
4. Perpetuity
Evolution of macroeconomic indicators
9%11%
7%5%
8%10%
7%9%
14%
8%5%
4%2%
19%
69%
53%
27%25%
29%
26%
17% 17%19%
23%
16% 15%12%
6%10%
26%23%
16%
10%12%
13%11% 10% 10%
12%10%
8%
2%0%
10%
20%
30%
40%
50%
60%
70%
Jul-Dec 1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Jan - Sep 2007
%(annual average)
SELIC TJLP Brazilian Risk Premium
Evolution of WACC of CCR – US$ nominal
23.6%
16.5%
14.9%
20.6%
13.9% 13.6% 13.8%
12.0%
14.5%
9.4%
13.6%
10.7%
9.1%
0%
5%
10%
15%
20%
25%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Jan - Sep 2007
What is the limit of this
drop?
CCR among its peers
Source: Industry Analysis 11/16/2007
Autostrade IT 21,987 4,823 3,018 2,443 1,015 62.6% 2.5% 12.3 21.9 4.9
Abertis ES 21,437 5,700 3,678 2,562 1,179 64.5% 2.7% 11.1 18.1 4.6
Sacyr Vallehermoso ES 12,553 8,508 1,788 1,332 1,314 21.0% 1.8% 14.7 9.4 16.2
Cintra ES 9,118 1,644 1,105 734 28 67.2% 0.9% 25.0 477.1 11.8
Brisa PT 8,873 1,047 760 541 321 72.6% 2.9% 13.0 23.9 4.8
CCR BR 7,154 1,366 875 681 376 64.1% 2.5% 8.4 17.9 0.7
Macquarie Infr Group AU 6,785 1,740 1,691 1,648 1,694 97.1% 6.7% 4.6 3.9 0.7
PLUS MY 4,882 705 570 492 361 80.9% 4.8% 11.2 13.5 2.6
Jiangsu Expressway CN 4,686 769 548 433 284 71.3% 5.2% 10.8 16.5 2.0
Bangkok Expressway TH 570 249 197 123 60 79.2% 4.3% 7.1 9.5 3.4
Net Debt/EBITDA
Market CapCountryEBITDA Margin
Dividend yield
EV/EBITDA P/ERevenues EBITDA EBITNet
IncomeUSD million - 2008 E
CCRO3 739%
IGC 571%
Ibovespa 390%
Share Buyback Program (ESM to be held on 11/29/2007)As of: 11/19/2007
Capital Market
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Feb-02 Apr-02 Jun-02 Sep-02 Nov-02 Feb-03 Apr-03 Jul-03 Sep-03 Nov-03 Feb-04 Apr-04 Jun-04 Sep-04 Nov-04 Fev-05 Abr-05 Jul-05 Sep-05 Nov-05 Feb-06 May-06 Jul-06 Sep-06 Dec-06 Feb-07 May-07 Jul-07 Sep-07
Volume (R$ thousand)
-100%
0%
100%
200%
300%
400%
500%
600%
700%
800%
900%
1000%
R$ 29 MM1,024
10,50059%
Average trading volume in the last 90 daysAverage daily trades in the last 90 daysNumber of shareholders% of the free-float held by foreign investors
New Businesses
Regulatory Framework 1994 x 2007 – Federal Concessions
Legislation
Regulatory Body
Concession Agreement
Jurisprudence
Other events
1994
Federal Public Tender Law 8666 of 1993
DNER – responsible for managing the Concession Agreements. Inspections handled by state DNER branches
1st Federal Concession Agreement signed in 1994
No legal precedent
---
2007
Federal Concession Law 8987 of 1995
Federal PPP Law 11079 of 2004
Regulatory Agency – ANTT – June 2001
----
First legal decisions governing annual tariff adjustments in 1997. First Supreme Court decisions as of 2003, related to the dispute in Paraná, with consolidation of the legal precedent of annual tariff adjustments, risk of the appropriation of voting capital and expropriation
Privatization of CVRD – 1997
Privatization of Telebrás – 1998
NovaDutra
Presidente-Dutra S/A Highway Concessionaire
12.2%
15.1%
16.3%
23.4%
19.2%17.3%17.4%
25.9%
29.0%
25.0%
27.5%
53.4%
68.9%
19.1%
7.9%9.8%
11.5%9.9%9.5%
10.7%
13.2%11.7%
10.1%
16.1%
23.4%
26.0%
9.7%
6.4%
815
873
177
1,102
679
456
829
1,023
734
904
1,409
541
394
232
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jul -Dec 1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Jan - Sep 2007
(annual ave
rage %
)
-
200
400
600
800
1,000
1,200
1,400
1,600
Brazilian Risk Premium (points)
SELIC TJLP Brazilian Risk Premium
Start up
Curren
t Sce
nario
NovaDutra
Presidente-Dutra S/A Road Highway Concessionaire
7.9%
9.8%
11.5%
9.9%9.5%
10.7%
13.2%
11.7%
10.1%
16.1%
23.4%
26.0%
9.7%
6.4%
2.0
3.1
2.9
2.3
1.81.8
1.21.1
1.00.9
0.9
2.9
2.4
2.2
0%
5%
10%
15%
20%
25%
30%
Jul -Dec 1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Jan - Sep 2007
(annual ave
rage %
)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
R$/U$ (annual ave
rage)
TJLP R$/US$
Finan
cing
Start up
Curren
t Sce
nario
Long-term Project Finance only
available from multilateral agencies at that time
Amortization of loans
Tender Notice 002 – Lot 05 Tariff 2.884
Federal Program - results
Classification Bidder Broker Tariff Discount
1 OHL Ágora 0.997 65.43%
2 Consórcio BR Vias (Aurea, W. Torre, Splice) Santander 1.15 60.12%
3 Consórcio Acciona Brasil / Acciona International Indusval 1.35 53.19%
4 Consórcio OII - CNO Merrill Lynch 1.668 42.16%
5 Consórcio TORC - Flora Brasil Socopa 1.791 37.90%
6 Consórcio Bertin - Equipav Votorantin 1.895 34.29%
7 Consórcio Qualivias (Aterpa, CCI, Funcef, S.Bárbara) Banif 2.186 24.20%
8 CCR UBS Pactual 2.249 22.02%
9 TPI - Triunfo Invest. Participações Credit Suisse 2.251 21.95%
10 Consórcio Isolux - Encalso - Senpar HSBC 2.307 20.01%
11 Consórcio Rodovias Brasil Bradesco 2.387 17.23%
12 Consórcio CEGEMS (Conter Grecca, SEM, Estrutural) Isoldi 2.39 17.13%
13 Consórcio Cowan, CBM, Fidens Mundinvest 2.419 16.12%
14 Consórcio AB Vias (ARG, Polledo do Brasil, Benito Roggio) Finabank 2.509 13.00%
15 Consórcio CRB (Schain, Enterpa, Condotti, Heleno Fonseca) Brascan 2.797 3.02%
Simulation of results – 1st and 2nd placed tariffs
Hypothesis 1 Hypothesis 2%change Tariff 1 Tariff 2 Tariff 1 Tariff 2
Tariff 0.997 1.150 0.997 1.150Traffic 0% 0% 25% 25%Investment 0% 0% -25% -25%Operating Cost 0% 0% -25% -25%IRT (FCFE) N/A N/A 3.42% 7.15%Transfers (R$ ‘000) 1,505,549 1,396,310 713,879 583,708EBITDA Margin -8.1% 6.3% 35.2% 43.8%
What is our positioning in face of this reality?
Blue Ocean Strategy
- Create undisputedmarket space
- Make competitionirrelevant
- Create and capture new demand
- Overcome the value-cost trade-off
- Strategic choice: differentiation AND low
cost
Go where the profit and growth are – where the competition isn’t
Blue Ocean Strategy (W. Chan Kim – R. Mauborgne)
Red Ocean Strategy
- Compete in existingmarket space
- Beat the competition
- Exploit existingdemand
- Make the trade-off between value and
cost
- Strategic choice: differentiation OR low
cost
Avoid predatory Red Ocean competition, strengthening
innovative Blue Oceanoperation
� Differentiated Approach to Business Management;
� Audacity in winning strategic businesses;
� New Markets;
� New Businesses;
Blue Ocean Strategy
Avoid predatory Red Ocean competition, strengthening
innovative Blue Ocean operation
� Differentiated Approach to Business Management;
� Audacity in winning strategic businesses;
� New Markets;
� New Businesses;
Blue Ocean Strategy
Avoid predatory Red Ocean competition, strengthening
innovative Blue Ocean operation
� Differentiated Approach to Business Management;
� Audacity in winning strategic businesses;
� New Markets;
� New Businesses;
Blue Ocean Strategy
CORRIDORS:
• Corridor Ayrton Senna – Carvalho Pinto......... 127.53 km
• Corridor Dom Pedro I...................................... 251.84 km
• Corridor Rondon Leste................................... 363.46 km
• Corridor Rondon Oeste.................................. 252.44 km
• Corridor Raposo Tavares............................... 387.73 km
• Total................................................................ 1,383.00 km
• Rodoanel (Ring Road)…….............................. 29.3 km
São Paulo Program
BR 116/MG BA/MG Border – Gov. Valadares – Itanhomi 422.1 km
BR 116/MG Itanhomi – Leopoldina – MG/RJ Border 394.6 km
BR 040/MG Juiz de Fora – Belo Horizonte 230.0 km
BR 040/MG Belo Horizonte – Sete Lagoas / BR 135 101.0 km
BR 040/MG Junction BR 135 – Três Marias – MG/GO Border 424.0 km
BR 040/GO MG/GO Border – Cristalina – GO/DF Border 157.3 km
BR 040/DF GO/DF Border – Junction DF-001 Brasília 8.4 km
BR 381/MG Santa Luzia – Governador Valadares 306.4 km
Total 2,043.8 km
Salvador – Feira de Santana – BA/MG Border 680.70 km
CND Resolution 14/07
Federal Program
MG Program
SETOP (State Secretariat for Transport and Public Works) is preparing to
issue a “Manifestation of Interest” to conduct feasibility studies for 17 roads
to be put out for tender in the following regions:
• Itapecerica – Lagoa da Prata
• Juiz de Fora – Ubá – Viçosa
• Pouso Alegre
• Poços de Caldas
• Itajubá
• Caxambu
• Lagoa de Furnas
• Curvelo – Diamantina
• Montes Claros
• Varginha
• Formiga – Oliveira
• São João Del Rei
• Ouro Preto – Ponte Nova
• Patos de Minas
• Uberlândia – Araxá
• Uberaba – Iturama
• Região Metropolitana –
(MG 010 and MG 424)
� Differentiated Approach to Business Management;
� Audacity in winning strategic businesses;
� New Markets;
� New Businesses;
Blue Ocean Strategy
Avoid predatory Red Ocean competition, strengthening
innovative Blue Ocean operation
New Markets
• Mexico
• USA
• Chile
•Central America
Avoid predatory Red Ocean competition, strengthening
innovative Blue Ocean operation
� Differentiated Approach to Business Management;
� Audacity in winning strategic businesses;
� New Markets;
� New Businesses;
Blue Ocean Strategy
Final Remarks
• Clearly defined and publicly-known strategy: profitability first, expansion next;
• Basic scenario indicates substantial up-side potential and reduced down-side;
• Cash flow from current portfolio permit maintenance of current dividend policy;
• Operations geared towards development of new market niches;
• Differentiated access to the capital market;
• Solid financial situation allows growth through increased leverage;
• Consolidated regulatory framework, permitting contractual adjustments to the
current realities of concessions.
Why CCRO3?