Transcript
Page 1: Ccr day 4 presentation
Page 2: Ccr day 4 presentation

Forward Looking StatementThis presentation contains certain statements that are neither reported financial results or otherhistorical information. They are forward-looking statements.

Forward Looking Statement

Because these forward-looking statements are subject to risks and uncertainties, actual futureresults may differ materially from those expressed in or implied by the statements. Many ofthese risks and uncertainties relate to factors that are beyond CCR’s ability to control orestimate precisely, such as future market conditions, currency fluctuations, the behavior of othermarket participants, the actions of governmental regulators, the Company's ability to continue toobtain sufficient financing to meet its liquidity needs; and changes in the political, social andregulatory framework in which the Company operates or in economic or technological trends orconditions, inflation and consumer confidence, on a global, regional or national basis.

Readers are cautioned not to place undue reliance on these forward-looking statements, whichspeak only as of the date of this document. CCR does not undertake any obligation to publiclyrelease any revisions to these forward looking statements to reflect events or circumstancesafter the date of this presentation.

Page 3: Ccr day 4 presentation

ScheduleSchedule

09:00 a m – Results of 3Q0809:00 a.m. Results of 3Q08

09:30 a.m. – Current Portfolio

10:30 a.m. – Financial aspects of the current portfolio

11:00 a.m. – Coffee Break

11:30 a m – Perspectives of CCR11:30 a.m. Perspectives of CCR

12:00 a.m. – Questions and Answers

12:30 a.m. – Luncheon

Page 4: Ccr day 4 presentation

Results of 3Q08Results of 3Q08

Page 5: Ccr day 4 presentation

Operating HighlightsOperating Highlights• Traffic grew by 9.4% in the 3Q08, and 8.8% in the 9M08.

• Net revenue reached R$ 744.1 million (+20.5%) in the third quarter, and R$1,999.8 million (+16.3%) in the 9M08.1,999.8 million ( 16.3%) in the 9M08.

• Net Income totaled R$ 219.6 million in the 3Q08 (+22.7%) up on the sameperiod last year, and R$ 524.8 million (+17.3%) in the 9M08.

• 35 8% increase in AVI users in the year compared to Sep/07 totaling• 35.8% increase in AVI users in the year, compared to Sep/07, totaling1,158,000.

Note: All comparisons refer to the 3Q07 and 9M07.

Page 6: Ccr day 4 presentation

Corporate HighlightsCorporate Highlights

• On September 30, 2008, CCR paid dividends of R$ 1.00 per share, totalingR$ 403.1 million.

• SAP implementation;• SAP implementation;

• Professional Development Program;Professional Development Program;

• Improvement of the CCR Group Corporate Management.

Page 7: Ccr day 4 presentation

ResultsResults

R$ MillionFinancial Highlights 3Q07 3Q08 Chg % 9M07 9M08 Chg %g g Q Q g gNet Revenue 617.6 744.1 20.5% 1,719.2 1,999.8 16.3%

Total Costs (1) (287.2) (356.0) 24.0% (886.4) (1,010.2) 14.0%

EBIT 330.4 388.0 17.4% 832.8 989.5 18.8%EBIT 330.4 388.0 17.4% 832.8 989.5 18.8%

EBIT Margin 53.5% 52.1% -1.4 p.p. 48.4% 49.5% +1.1 p.p.

Depreciation and Amortization (2) 80.3 93.9 16.9% 244.9 268.1 9.5%

EBITDA 410.7 482.0 17.4% 1,077.7 1,257.7 16.7%

EBITDA Margin 66.5% 64.8% -1.7 p.p. 62.7% 62.9% +0.2 p.p.

Net Financial Result (66 4) (47 5) -28 6% (154 7) (172 6) 11 6%Net Financial Result (66.4) (47.5) -28.6% (154.7) (172.6) 11.6%

Income and Social Contribution Taxes (82.9) (118.0) 42.3% (222.3) (285.8) 28.6%

Net Income 179.0 219.6 22.7% 447.6 524.8 17.2%

(1) Total Costs + Administrative Expenses(2) Includes prepaid expenses

Page 8: Ccr day 4 presentation

Net Financial ResultNet Financial Result

Net Financial Result (R$ MM) 3Q07 3Q08 Chg % 9M07 9M08 Chg %Net Financial Result (R$ MM) 3Q07 3Q08 Chg % 9M07 9M08 Chg %

Net Financial Result (66.4) (47.5) -28.6% (154.7) (172.6) 11.6%

Financial Expenses: (87.1) (101.4) 16.5% (214.9) (301.9) 40.5%

- Exchange Rate Variation 6.3 (20.4) n.m. 10.4 (33.3) n.m.

- Losses from Swap Operation (Passive Curve) (8.8) (6.5) -26.2% (14.3) (30.4) 113.5%

- Monetary Variation (19 3) (14 7) -27 8% (25 3) (68 4) 170 4%Monetary Variation (19.3) (14.7) -27.8% (25.3) (68.4) 170.4%

- Interest on Short-term and Long-term Debt (48.9) (51.9) 6.0% (145.2) (148.7) 2.4%

- Other Financial Expenses (16.4) (7.9) -51.5% (40.6) (21.1) -47.9%

Financial Income 20.7 54.0 161.1% 60.2 129.3 114.7%

Gains from Swap Operation (Active Curve) 1.9 22.3 n.m. 1.9 36.0 n.m.

Oth Fi i l I 18 8 31 7 68 5% 58 3 93 3 60 0%Other Financial Income 18.8 31.7 68.5% 58.3 93.3 60.0%

Page 9: Ccr day 4 presentation

Business DynamicsBusiness Dynamics

EBITDA (R$ million) x EBITDA Margin482

322 323341

326

411

377

401

374

216 218 224

259

310 309299

263

322 323 326

216 218 224

60%

56%58% 59%

57%

62%

59% 59%

65%

59%

65%67%

55% 55% 54% 55% 56%

51%

57%

3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

Page 10: Ccr day 4 presentation

Business Dynamics

482EBITDA (R$ million)

Business Dynamics

411

67%

310322

55%

60% 59% 59%

216

3Q04 3Q05 3Q06 3Q07 3Q08

Page 11: Ccr day 4 presentation

RevenuesRevenues

R B kd 3Q08Concession Breakdown Revenues Breakdown – 3Q08Concession Breakdown

STP 2.0% Other 2.4%ViaOeste

17%

Renovias3%

Other2%

AutoBAn38%

P t

ViaLagos1%

96,2%95.6%T ll

RodoNorte10%

Ponte3%

Toll

NovaDutra26%

Page 12: Ccr day 4 presentation

Toll Payment MethodToll Payment Method

57%

Cash46%

50%52%

54%

50%

48%

Electronic

417M

21M

M

3Q05 3Q06 3Q07 3Q08

43% 32

273M

232M

3Q05 3Q06 3Q07 3Q08

Page 13: Ccr day 4 presentation

Traffic (Vehicle Equivalents - million)Traffic (Vehicle Equivalents million) Quarterly Evolution

156

130 133 143

3Q05 3Q06 3Q07 3Q08

3Q08 x 3Q07 – Concession Breakdown

6.5%

9.1%

7.2%

%

4.0%4.9%

5.8%

-0.3%

AutoBAn NovaDutra RodoNorte Ponte ViaLagos ViaOeste Renovias

Page 14: Ccr day 4 presentation

Net Revenue & Total CostsNet Revenue & Total Costs744

Net Revenue

618

550

519 356

Payroll

Other

Net Revenue

mill

ion)

347

15%

17%

12%16% 13%

15%

16%

13%287

315290

21%

13%15%

16%16%13%

12%16%

15%

17%

12%

D&A

Third-Party

Concession Fee

R$

(m

48%

28%

28%

27%

23%

22%

27%

21%

24%

27%

16%

28%

46%

57%

56%

27%

24%

21%

27%

16%

28%

27%

23%

22%

28%

28%

Other: insurance rent marketing travel electronic payment and conservation and material for conservation and maintenance

3Q05 3Q06 3Q07 3Q08

27%

Other: insurance, rent, marketing, travel, electronic payment and conservation and material for conservation and maintenance.

Third-Party Services: auditing, consulting, shared services and routine maintenance.

Page 15: Ccr day 4 presentation

Indebtedness

Gross Debt

Indebtedness

Net Debt2,914

1 467 1,774

1,93293%

1 278

2,338

1,467

(milli

on)

,

100%

100%1,214

1,276 1,278 1.43

1.20(milli

on)

R$ 81%

0.911.07R

$

3Q05 3Q06 3Q07 3Q08

Short Term Long Term In R$ Net Debt Net Debt / EBITDA

3T05 3T06 3T07 3T08

The increase in short-term debt is the result of bridge loans, which will be refinanced by long-term credits.

Page 16: Ccr day 4 presentation

IndebtednessIndebtedness

Debt Breakdown Debt Amortization

796DebenturesOthers

BNDESTJLP + (4.5% - 5.0%)

772464

Debentures IGP-M + 7.6%-11%

Others 104.5% - 107.3% CDI 7%

28%

27%28%

7%

24%

7%

28%24%

7%

28%330

200 144 11494

201Foreign

Currency

28%

34%34%

7%

34%

7%

4Q08 2009 2010 2011 2012 2013 2014 2015

94

Debentures103.3% - 105% CDI

34%

Page 17: Ccr day 4 presentation

CAPEX Schedule 2008 - 2009CAPEX Schedule 2008 2009

CAPEX (R$ MM) 1Q08 2Q08 3Q08 2008(E) 2009 (E)AutoBAn 34.3 61.3 38.8 199.1 149.8NovaDutra3 29.4 37.6 41.4 155.6 56.0ViaOeste 13.6 9.6 16.3 103.2 4.2RodoNorte 8.2 14.9 19.6 90.7 74.8Ponte3 3.0 3.2 2.8 14.5 3.5ViaLagos3 0.1 0.2 1.8 5.3 0.5ViaQuatro 12.9 0.0 23.9 185.6 252.7Renovias1 0 9 4 3 96 8 80 2Renovias 0.9 4.3 96.8 80.2RodoAnel 2.2 31.3 49.0 36.1Other2 1.7 (1.6) 0.3 10.9 8.7Consolidated 103.2 128.3 180.5 910.7 666.51 E t i l i f R$ 876 000 i R i i th 2Q081 - Erratum: inclusion of R$ 876,000 in Renovias in the 2Q08.

2 - Includes CCR, CCR México, CCR USA, Actua, Engelog, Parques and STP3 - The 2008 estimates for NovaDutra, Ponte and ViaLagos have been revised.

The amounts estimated for 2008 and 2009 in the RodoNorte, ViaQuatro, Renovias and RodoAnel concessionaires are equivalent to 100% of the project.

Page 18: Ccr day 4 presentation

Current Portfolio

Page 19: Ccr day 4 presentation

Development...p

Capital Discipline...

Commitment to results.

Page 20: Ccr day 4 presentation

2007 Scenario

NovaDutra NovaDutra

2007 Scenario

NovaDutraConcessionária da Rodovia Presidente-Dutra S/A

53,4%

68,9%

815

873

1.102

829

1.023

904

1.409

40%

50%

60%

70%

80%

a an

ual)

800

1.000

1.200

1.400

1.600

il (p

onto

s)

Iníc

io

Cen

ário

Atu

al

Concessionária da Rodovia Presidente-Dutra S/A

16,1%

23,4%

26,0%

2,0

3,1

2,9

2,3

2,9

2,4

2,2

20%

25%

30%

a an

ual) 2,0

2,5

3,0

3,5

dia

anua

l)

Fina

ncia

men

to

In

ício

Cen

ário

Atu

al

Multilaterais eram os únicos financiadores de longo-prazo e na modalidade Project Finance

existentes na época

Amortização dos financiamentos

NovaDutra

12,2%

15,1%16,3%

23,4%

19,2%17,3%17,4%

25,9%

29,0%

25,0%27,5%

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%

177

679

456

734

541

394

232

0%

10%

20%

30%

40%

jul-dez

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

jan - s

et 20

07

(% m

édia

-

200

400

600

800R

isco

Bra

s

SELIC TJLP Risco Brasil

81

7,9%

9,8%

11,5%

9,9%9,5%

10,7%

13,2%

11,7%

10,1% 9,7%

6,4%

1,81,8

1,21,1

1,00,9

0,9

0%

5%

10%

15%jul-d

ez 19

94

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

jan - s

et 20

07

(% m

édia

0,0

0,5

1,0

1,5

R$/

U$

(méd

TJLP R$/US$

80 81

Page 21: Ccr day 4 presentation

2007 Scenario2007 Scenario

Page 22: Ccr day 4 presentation

Blue Ocean StrategyBlue Ocean Strategy

Avoid predatory Red Ocean competition

Diff i d A h B i M

strengthening innovative Blue Ocean operation

Differentiated Approach to Business Management;

Audacity in winning strategic businesses;

New Markets;

New Businesses.

Page 23: Ccr day 4 presentation

Blue Ocean Strategy

Avoid predatory Red Ocean competition

Blue Ocean Strategy

Diff i d A h B i M

strengthening innovative Blue Ocean operation

Differentiated Approach to Business Management;

Audacity in winning strategic businesses;

New Markets;

New Businesses.

Page 24: Ccr day 4 presentation

Brazil's largest road concession operator

Concessionaires Toll Revenues3Q05

Brazil s largest road concession operator

AutoBAn - 317 km(April / 2028)

NovaDutra - 402 km(Feb / 2021)

40%

26%ViaOeste - 162 km(April / 2023)

RodoNorte - 488 km(Dec / 2021)

26%

17% (Dec / 2021)

Ponte - 23 km(May / 2015)

11%

Vi L 60 k

Sorocaba

4%ViaLagos - 60 km(Nov / 2021)

2%RodoAnel – 32 km

(May / 2038)

TOTAL – 1,484 km*

( y )

* CCR also owns 40% of Renovias (345.6 km) and 10% of the Northwest Parkway – USA (18 km)

Page 25: Ccr day 4 presentation

The most recent achievement of the Group: the West segment of the ring road

CAPTION

Ring Road – West Segment

Ring Road Project

CCR Concessionaires

CAPTION

Four-lane Highway

Highway Police

SOS Usuário

Page 26: Ccr day 4 presentation

Unique Business Management

AutoBAn

Unique Business Management

• Anhanguera Complex 2nd Phase (R$ 340 million)

NovaDutra

• Marginais RJ / SJC / SP• Serra das Araras (R$ 753 million)• Safety works

• Other improvements (R$ 475 million)

Page 27: Ccr day 4 presentation

Anhangüera Project – 1st and 2nd PhasesAnhangüera Project 1st and 2nd Phases

Page 28: Ccr day 4 presentation

Anhangüera Project – Current PhaseAnhangüera Project Current Phase

Page 29: Ccr day 4 presentation

Marginais Rio de JaneiroMarginais Rio de Janeiro

Page 30: Ccr day 4 presentation

Unique Business Management

ViaOeste

Unique Business Management

• Cebolão Project (R$ 235 million)• Jandira / Itapevi Interchange

• Tolls adjustment• Bidirectional tolls

Ponte

• Bidirectional tolls

Ponte• Improvements in Access to Niterói • Improvements in Access to Rio

(R$ 150 million)

Page 31: Ccr day 4 presentation

Cebolão ProjectCebolão Project

Page 32: Ccr day 4 presentation

Jandira InterchangeJandira Interchange

Page 33: Ccr day 4 presentation

Unique Business Management

Increased value of current agreements

Unique Business Management

Increased value of current agreements

P j t t d t• Projects to reduce escape routes

• Expansion of the tolled baseExpansion of the tolled base

• Demand for new investments vs. Adjusments to agreements

• Debt refinancing (Releverages)

Page 34: Ccr day 4 presentation

Unique Business Management

Ring Road (West Segment)

Unique Business Management

• Conclusion of initial works• Beggining of toll operations (Dec/08)

Bandeirantes – Rodoanel Interchange Anhanguera – Rodoanel Interchange

Page 35: Ccr day 4 presentation

Rodoanel – Toll PlazasRodoanel Toll Plazas

Page 36: Ccr day 4 presentation

Unique Business Management

Feb/102nd Phase

Sep/09

1st Phase 3rd Phase

q g

ViaQuatroMay/08

Oct/08Jul/09

Trains and

Sep/09

Operational Tests

Commercial Operation

Long-term financing

Nov/06Aug/07

Nov/07May/08

Equipment

S.O.

S.O.Construction

May/06 Contract -Supply

ContractSigning

Bid

Project

Bid

Organizational Development and Contract Management

Page 37: Ccr day 4 presentation

Unique Business Management

STP – Serviços e Tecnologia de Pagamento

q g

• User Base Growth (1,158,307 in Sep/08)• Agreements with 35 Concessionaries (82% of the tolls)

O ti i 22 ki l t (SP RJ d PR)• Operating in 22 parking lots (SP, RJ and PR)• 240 million transactions per month

Percentages of Revenues

Cash46%50%

52%57%

Meios Eletrônicos

Cash

54%

50%48%

Electronic

417M

21M

M

40.2 %

59.7 %Other

3Q05 3Q06 3Q07 3Q08

48%43%

32

273M

232M

Page 38: Ccr day 4 presentation

Unique Business Managementq g

STP – Serviços e Tecnologia de Pagamento% Revenue (AVI)

UN's 9M08VIAOESTE 55 6%

Users (thousand)

VIAOESTE 55.6%AUTOBAN 58.7%RENOVIAS 49.8%NOVADUTRA 55.0%

27%9091158 1,200

1,400

RODONORTE 31.7%PONTE SA 39.4%VIALAGOS 28.9%

36%

35%

23%

27%

286406

550740

909

600

800

1,000

122%47%

42%87

194286

2001 2002 2003 2004 2005 2006 2007 20080

200

400

* Information up to the 9M08.

2001 2002 2003 2004 2005 2006 2007 2008

users growth

Page 39: Ccr day 4 presentation

Traffic

Page 40: Ccr day 4 presentation

Historic Perfomance of Tolled Vehicles

60

RodoAnel Operational StartupDec./08

Bidirectional

Bidirecional commercial vehicles

- AutoBAn2nd phase Jun./01

Bidirecional vehiclesAutoBanJul./04

Renovias Acquisition

jun./0850

60

Bidirectional commercial vehicles

- AutoBAn1st phase Feb./01 Startup Jacareí

NovaDutra

j

40

50

Mill

ion

Aug./01

30

40

ViaOeste AcquisitionMar./05

Bidirectional Araçoiaba da Serra ViaOeste

Fev./06

30

20

Jan/

00

May

/00

Sep/

00

Jan/

01

May

/01

Sep/

01

Jan/

02

May

/02

Sep/

02

Jan/

03

May

/03

Sep/

03

Jan/

04

May

/04

Sep/

04

Jan/

05

May

/05

Sep/

05

Jan/

06

May

/06

Sep/

06

Jan/

07

May

/07

Sep/

07

Jan/

08

May

/08

Sep/

08

Page 41: Ccr day 4 presentation

Traffic Historic Performance

16.0% 60.0%

12.0%

14.0%

40 0%

50.0%

6 0%

8.0%

10.0%

30.0%

40.0%

2 0%

4.0%

6.0%

10.0%

20.0%

0.0%

2.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 Jan toSep 2008

0.0%

Sep 2008

Annual fees Accumulated

Page 42: Ccr day 4 presentation

2008 Traffic Performance008 a c e o a ce

11 1%12%

8 3%9.0% 8.2%

11.1%9.9%

8%

10%

8.3%

5.3%7.8%

6%

8%

4.5%

2.7%2%

4%

0%

2%

Jan Feb Mar Apr May Jun Jul Aug SepJan Feb Mar Apr May Jun Jul Aug Sep

2008/2007

Page 43: Ccr day 4 presentation

Traffic Performance

Index ABCRsp x Index CCR – Tolled VehiclesDec 2004=100

140

120

100

80

ABCRsp AutoBAn ViaOeste Renovias

Page 44: Ccr day 4 presentation

Traffic Performance

Index ABCRbr x Index CCR - Tolled VehiclesD 2004 100Dec 2004=100

115

125

95

105

85

ABCR Brazil NovaDutra

Page 45: Ccr day 4 presentation

Traffic Performance

Index ABCRpr x Index CCR – Tolled VehiclesDec 2004=100

125

115

95

105

85Oct/07 Nov/07 Dec/07 Jan/08 Feb/08 Mar/08 Apr/08 May/08 Jun/08 Jul/08 Aug/08 Sep/08

ABCRpr RodoNorte

Page 46: Ccr day 4 presentation

Motorization Index – Historical EvolutionMotorization Index – Historical Evolution

Inhabitants per vehicle - Brazil9.4

9.1 9.0 8.9 8 88.88.6 8.4 8.4 8.2 8.0 7.9 7.2

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Source: Anfavea

2006 2007

Higher credit offering for the automobile industry

Source: Anfavea

Page 47: Ccr day 4 presentation

Motorization Index – Global ViewMotorization Index – Global View9.1

7 9

Inhabitants per vehicle

5.75 2

7.4 7.9

1997

2006 5.2

3.1

4.32006 4.7

1.31.8 1.71.7 1.5

1.21.7 1.71.7 1.5

If h d b d i h i fl i B il

France South Korea MexicoCanadaAustralia USA BrazilArgentinaItaly

Source: Anfavea

If the same trend observed in other countries reflects in Brazil, traffic x GDP elasticity ratio can increase significantly

Page 48: Ccr day 4 presentation

Automobile fleet expansion potentialAutomobile fleet expansion potential

Domestic sales

1,428 1 363 1,4231,565

1,945Domestic sales

1,2991,428

1,032 9561,154

1,264 1,245 1,1661,363 1,423

Source: Ipeadata

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Source: Ipeadata

The number of potential clients are showing expansion

Page 49: Ccr day 4 presentation

CCR System Traffic GrowthCCR System Traffic Growth

CCR Consolidated - Historical Evolution & ElasticityComparison between growth in GDP and TrafficComparison between growth in GDP and Traffic

4Q99 = BASE 100

150

160

AnnualGDP

VEQ CCR

120

130

140 (1)2000 4.3% 1.8%2001 1.3% 10.2%2002 2.7% 7.8%2003 1.2% 0.4%

90

100

1102003 1.2% 0.4%2004 5.7% 7.0%2005 2.9% 2.9%2006 3.8% 2.3%2007 5.4% 6.2%

2008 (2) 6 0% 8.0%

80

4Q99

2Q00

4Q00

2Q01

4Q01

2Q02

4Q02

2Q03

4Q03

2Q04

4Q04

2Q05

4Q05

2Q06

4Q06

2Q07

4Q07

2Q08

GDP TRAFFIC EQUIVALENT VEHICLES

2008 (2) 6.0% 8.0%Accumulated 38.4% 56.9%

Elasticity 1.5 (1) IBGE – New Methodology(2) Jan-Jul

GDP TRAFFIC EQUIVALENT VEHICLES

Page 50: Ccr day 4 presentation

ConclusionsConclusions

• Characteristics of our highways minimize impacts from sector crisesCharacteristics of our highways minimize impacts from sector crises.

• Historical traffic elasticity is 1.5x Brazil GDP.

• Favorable path in the motorization index could have a strong impact on traffic indicators.

• Main driver of the recent acceleration in traffic growth is the stronger economic growth in the regions where our toll roads are located.

Page 51: Ccr day 4 presentation

Results

Page 52: Ccr day 4 presentation

Overview: CCR Group Concessionsp

A t BA 69 9% 18 2

Business Unit EBITDA Margin (%) Remaining Term (Year)AutoBAn 69.9% 18.2

NovaDutra 59.2% 12.4

ViaOeste 70.5% 14.3

Ponte 48.7% 6.5

ViaLagos 55.3% 13.2

RodoNorte 62.9% 13.1RodoNorte 62.9% 13.1

ViaQuatro 66.1% 30

R d A l 79 0% 29 6RodoAnel 79.0% 29.6

Renovias 65.2% 13.6

Page 53: Ccr day 4 presentation

Historic EBITDA Marging

70.0%

60.0% AutoBAnNovaDutraRodoNortePonte

50.0%

PonteViaLagosViaOesteCCR

40.0%2003 2004 2005 2006 2007 2008

Page 54: Ccr day 4 presentation

Services

Page 55: Ccr day 4 presentation

CCR (Average Monthly Service)• Electric / Mechanical assistance – 294,000 calls/year

• Lack of fuel and changing tires 108 000 calls/year

CCR (Average Monthly Service)

• Yearly access to website - 2.8 million accesses

• Prehospital care – 40,000 calls/year

• Lack of fuel and changing tires – 108,000 calls/year

• 27% accident and 54% death reduction

Page 56: Ccr day 4 presentation

Development...p

Capital Discipline...

Commitment to results.

Page 57: Ccr day 4 presentation

Financial Aspects of the Current PortfolioFinancial Aspects of the Current Portfolio

Page 58: Ccr day 4 presentation

Financial Aspects of the Current PortfolioFinancial Aspects of the Current Portfolio

• CCR Group Financial Policy

• Risk Management

• Current Indebtedness

Page 59: Ccr day 4 presentation

CCR Group Financial PolicyCCR Group Financial Policy

• Hedgeg

• Cash Management

• Leverage

• Dividends

Page 60: Ccr day 4 presentation

Hedge Policy

Approved by the Board of Directors’ Meeting of October 27, 2005:

Hedge Policy

“foreign currency hedge policy with 1-year maturity, combined with a periodic g y g p y y y, pscenario inspections and simulations of risk exposure and impact on the Company’s expected results”

• To be revised in light of market conditions.

Page 61: Ccr day 4 presentation

Foreign Exchange Exposure of the CCR Group – 09/08

• Ponte – USD 25 million with swap to 109.70% of the CDI rate

Foreign Exchange Exposure of the CCR Group 09/08

• Lagos – JPY 4 billion with swap to 103.20% of the CDI rate

• Line 4 – USD 28 million with swap to 125% of the CDI rate

• CCR USA – USD 27 million with no swap (the hedge is the stake in Northwest Parway)Parway)

Page 62: Ccr day 4 presentation

Cash ManagementCash Management

CCR C1 C3C2 C4 C5

FIQ Exc. CCR

.......

FIQ Exc. CCR

FIM Exc. CCR

Government Bonds

BDCBank A

BDCBank B

BDCBank C

.......

Bonds Bank A Bank B Bank C

Page 63: Ccr day 4 presentation

Cash ManagementCash ManagementDate: 10/27/2008

Balance (R$ ‘000)Company

Actua Assessoria 826Actua Serviços 1,750

Autoban 96,174CCR 197,310

Engelog 3,473NovaDutra 40,704

Ponte 5,895Rodonorte 33,862ViaOeste 107,504ViaLagos 1 916ViaLagos 1,916ViaQuatro 8,106Rodoanel 140,729

Total 638 251Total 638,251

The RodoNorte and Via Quatro amounts correspond to 100% of the project.

Page 64: Ccr day 4 presentation

LeverageLeverage2,338

1,322

1,127 1,1391,2271,161

2.8

622

0.94 0.84

1.431.05

1.97

0.82

2002 2003 2004 2005 2006 2007 9M08

The maximum leverage permitted by our current financial policy is a net debt-to-EBITDA ratio of 3.0x, which enables us to seek new opportunities with capital discipline.

Page 65: Ccr day 4 presentation

DividendsDividends

91% 86%

60%65%

91%

57%

86%

16%

2003 2004 2005 2006 2007 2008E Note: Cash basis

We reiterate our commitment to the market of distributing at least 50% of annual net income in 6 monthly installmentsannual net income, in 6 monthly installments.

Page 66: Ccr day 4 presentation

Risk Management

Advisory Services Hired

Risk Management

PWC – Market Risk Management

objective – to provide CCR with tools to evaluate and manage business risks through the @risk methodology which allows the simulation ofrisks through the @risk methodology, which allows the simulation of impacts based on historical correlations and stress scenarios;

RiskOffice – specialized in measuring risks and suggesting protection alternatives

objective – to make Management comfortable by creating “risk committees” to permanently evaluate scenarios, confirm the effectiveness of the hedge operations adopted and suggest any

dj t tnecessary adjustments.

Page 67: Ccr day 4 presentation

Risk ManagementRisk ManagementImpact on portfolio

Probability assumptions - traffic, operating costs, investments, interest and inflation rate

Concessions Current portfolioProject Analysis Approach

(P)

Scenarios

interest and inflation rate

(P)

R$ (mi)

+

(P)Ke HR Average IRR

R$ (mi)

New project

IRR (NPV, Ebitda)

(P)=

$ ( )

Projected portfolio

Current portfolio

Project risk evaluation based on probabilities for:– IRR

Cash flow to the holding (divid.)

Evaluation of risks in the portfolio

R$ (mi)

– Coverage of interest and principal– Coverage of investments– Coverage of projected dividends

Evaluation of risks in the portfolio– Coverage of interest and principal– Coverage of shareholder dividends– Availability of sufficient capital for future

investments

Page 68: Ccr day 4 presentation

Risk ManagementRisk Management

Page 69: Ccr day 4 presentation

Risk ManagementRisk Management

CVM Resolution no. 550CVM Resolution no. 550

• Note 24 to the Financial Statements, Quarterly Information (ITR)/September 2008 – Financial Instruments2008 Financial Instruments

Page 70: Ccr day 4 presentation

IndebtednessIndebtedness

• Note 17 to the Financial Statements, ITR/Sep08 - Financials - Loans, , p ,Financing and Debentures

Amount,

Currency,

Index,

Maturity,

Covenants,

Financer.

Page 71: Ccr day 4 presentation

Indebtedness – Amortization ScheduleNet Debt / EBITDA

R$ million

T I d B l S /08 4Q08 2009 2010 2011 2012 2013 2014AutoBAn

Indebtedness Amortization Schedule

1.8

1.1 1.1 1.31.0 1.0

Type Index Balance Sep/08 4Q08 2009 2010 2011 2012 2013 2014BNDES TJLP + 11% 101 16 23 30 30 3

Debentures IGPM + 10.65% 242 25 49 49 49 49 20Debentures 103.3% CDI 314 45 108 108 54

657 16 92 187 187 106 49 20Total

3

03 04 05 06 07 08E

1.3 1.20.8 0 7

NovaDutraType Index Balance Sep/08 4Q08 2009 2010 2011

BNDES TJLP + 9% 10 5% 8 3 3 1 1

Average Cost of Debt 15.5% p.a.

0.8 0.70.3 0.1

03 04 05 06 07 08E

BNDES TJLP + 9% - 10.5% 8 3 3 1 1

Debentures IGPM + 9.5% 110 6 92 12118 9 95 12 1

Average Cost of Debt 17.9% p.a.Total

0.5

1.5

2.41.9

ViaOesteType Index Balance Sep/08 4Q08 2009 2010 2011 2012 2013 2014 2015

Finame TJLP + 9% a 10.3% 2 0 1 1 0 0Debentures CDI 270 9 35 39 37 37 37 37 38Debentures IGPM + 7 6% 424 24 54 60 57 57 57 57 57 0.5

05 06 07 08E

Debentures IGPM + 7.6% 424 24 57 57 57 57 57696 33 90 100 95 94 94 94 95

Average Cost of Debt 15.3% p.a.Total

Page 72: Ccr day 4 presentation

Indebtedness – Amortization ScheduleNet Debt / EBITDA

Indebtedness Amortization Schedule

RodoNorteType Index Balance Sep/08 4Q08 2009 2010 2011

R$ million

3.22.7

2.01.5

1.00.6

Type Index Balance Sep/08 4Q08 2009 2010 2011

BNDES / Finame TJLP + 9.0% a 11.0% 59 7 27 25 0

Debentures IGPM + 11.0% 54 28 26

BNDES Basket of Currencies 5 0 2 2 0

Total 118 7 57 52 1

03 04 05 06 07 08E

4.43.3 3.6

2 9

Total 118 7 57 52 1

ViaLagosIndex Balance Sep/08 4Q08 2009 2010

Average Cost of Debt 14.2% p.a.

Type 2.91.9 2.0

03 04 05 06 07 08E

Index Balance Sep/08 4Q08 2009 2010

SWAP TJLP + 5.82% 65 65

Total 65 65Average Cost of Debt 14.0% p.a.

Type

3.22.7

2.0 1.51.0 0.6

PonteIndex Balance Sep/08 4Q08 2009

SWAP IGPM + 6.37% 50 50

Total 50 50

Type

03 04 05 06 07 08EAverage Cost of Debt 14.9% p.a.

Page 73: Ccr day 4 presentation

Indebtedness Amortization ScheduleR$ million

Indebtedness – Amortization Schedule

ViaQuatroT I d B l S /08 4Q08Type Index Balance Sep/08 4Q08

Resolution 2770 US$ + 5.5% 32 32Total 32 32

Renovias

Average Cost of Debt 10.7% p.a.

RenoviasType Index Balance Sep/08 4Q08 2009 2010 2011

Resolution 2770 CDI + 0.275% 8 1 3 3 1Resolution 2770 / BNDES TJLP + 4.72% - 5.5% 24 1 9 7 7

Total 32 2 11 10 8Average Cost of Debt 12.0% p.a.

RodoanelType Index Balance Sep/08 4Q08

Promissory Note CDI + 1.25% 672 672Total 672 672

g p

CCR holdingType Index Balance Sep/08 4Q08 2009 2010 2011

Debentures 105% CDI 414 339 38 38T t l 414 339 38 38

Average Cost of Debt 15.0% p.a.

Average Cost of Consolidated Debt 14.9% p.a.

Total 414 339 38 38Average Cost of Debt 15.1% p.a.

Page 74: Ccr day 4 presentation

ViaQuatro FinancingViaQuatro - Financing• Source: IDB+ Commercial Banks (A/B Loan)

• Disbursement: 2008 through 2010

• Destination of Funds: Trains, systems and pre-operating expenses

• Amount: US$ 369 million

• Financer Share: 80%

• Cost: A: Libor + 2.20% to 2.80% p.a. (*)B: Libor + 1.90% to 2.50% p.a. (*)

• Status: Awaiting the 1st disbursement, scheduled to take place in 4 weeks

• Term: A: 15 yearsTerm: A: 15 yearsB: 12 years

*the agreement provides for cost step-up after the project completion and the start of phase II of the commercial operation

Page 75: Ccr day 4 presentation

Rodoanel – Short-Term Financing

1st Bridge: R$ 650 million, in May/2008CDI rate+ 1 25% p a ;

Rodoanel Short Term Financing

- CDI rate+ 1.25% p.a.;- Firm guarantee of 12 months.

2nd Bridge: up to R$ 650 million, in October/2008- CDI rate + 1.18% p.a.;

Firm guarantee of 12 months- Firm guarantee of 12 months.

Rollovers of Promissory Notes issued are expected, if necessary, as well as the raising of an additional R$ 650 million, i.e., the concessionaire's short-term debt may total R$ 1 950 millionterm debt may total R$ 1,950 million.

Page 76: Ccr day 4 presentation

Rodoanel – Long-Term FinancingRodoanel Long Term Financing

• Source: IDB+ Commercial Banks (A/B Loan)

• Contracting: 1Q09/2Q09

• Disbursement: 2008 through 2010Disbursement: 2008 through 2010

• Destination of Resources: Refinancing of grant and investments

• Amount: Approx. R$ 1.7 billion

• Financer Share: Negotiations in initial stage, estimates at 70% to 80%.

• Cost*: Proposal assumption - Libor+2.40% p.a. +/-0.2% p.a. (*)

• Instrument: Mid-Permanent Notes or traditional A/B• Instrument: Mid-Permanent Notes or traditional A/B

(*) the latest transactions effected by the IDB were syndicated at the cost of Libor+ 3.5% p.a., with spread step-up along the term.

Page 77: Ccr day 4 presentation

Rodoanel – Long-Term Financing

Current Situation:

Rodoanel Long Term Financing

• IDB project, with independent traffic, engineering and environment advisers already hired by IDB and business due diligence already in place.

• Next steps:identification of MLA’s; term-sheet negotiation with the IDB and MLA’s; modeling – exchange rate, coverage indexes, leverage and traffic,etc; officialize the operation mandate with the IDB; o c a e t e ope at o a date t t e ;drafting of the agreements; syndication.

We estimate this credit will be released in May /09.

Page 78: Ccr day 4 presentation

P ti f CCRPerspectives of CCR

Page 79: Ccr day 4 presentation

Development...p

Capital Discipline...

Commitment to results.

Page 80: Ccr day 4 presentation
Page 81: Ccr day 4 presentation

Blue Ocean StrategyBlue Ocean Strategy

Avoid predatory Red Ocean competition

Differentiated Approach to Business Management;strengthening innovative Blue Ocean operation

Audacity in winning strategic businesses;

New Markets;

New Businesses.

Page 82: Ccr day 4 presentation

Blue Ocean Strategy

Avoid predatory Red Ocean competition

Blue Ocean Strategy

Differentiated Approach to Business Management;strengthening innovative Blue Ocean operation

Audacity in winning strategic businesses;

New Markets;

New Businesses.

Page 83: Ccr day 4 presentation

Blue Ocean Strategy

Avoid predatory Red Ocean competition

Blue Ocean Strategy

strengthening innovative Blue Ocean operationDifferentiated Approach to Business Management;

Audacity in winning strategic businesses;

New Markets;

New Businesses.

Page 84: Ccr day 4 presentation

Winning Bid for the Ring Road - West Segmentg g g

“Bold Capture of Strategic Businesses”

1st Lot of the 2nd Phase of São Paulo State Program

1st – INTEGRAÇÃO OESTE CONSORTIUM.............. R$ 1.1684CCR / ENCALSOCCR / ENCALSO

2nd.............................................................................. R$ 1.2600

3rd............................................................................... R$ 2.1799

4th............................................................................... R$ 2.2468

5th............................................................................... R$ 2.2807

Page 85: Ccr day 4 presentation

Winning Bid for the Ring Road - West Segmentg g g

“Bold Capture of Strategic Businesses”

“Bold”C f f O• Capturing of synergies for ViaOeste

• Engineering Solutions• Structuring of FinancingStructuring of Financing

“Strategic Business”• Intersects 4 Highways of the CCR Systems• Unique Positioning for Ring Road – South Segment

P i il d i i f l i i l f• Privileged position for logistics platforms

Page 86: Ccr day 4 presentation

Acquisition of Interest in Renovias

“Bold Capture of Strategic Businesses”• The amount of the transaction correponded a

multiple of EV/EBITDA 5.3x, considering the 2008 estimated EBITDA.

St t i P t hiStrategic Partnership

ENCALSO

Page 87: Ccr day 4 presentation

Auction Results for the 2nd Phase of the São Paulo State Program

Page 88: Ccr day 4 presentation

São Paulo – 2nd PhaseRaposo Tavares Corridor

Position BidderTariff

Offered DiscountAyrton Senna / Carvalho Pinto Corridor

1st Triunfo 0.048560 -55.00%2nd Primav 0.058899 -45.42%

1st Invepar-OAS 0.090525 -16.11%2nd Triunfo 0.102515 -5.00%

Position BidderTariff

Offered Discount

Mal. Rondon Oeste Corridor

1st BR Vias 0.064099 -40.60%2nd Triunfo 0 064746 -40 00%

2nd Primav 0.058899 45.42%3rd BRVias 0.077393 -28.28%4th Invepar 0.079734 -26,.1%5th CCR 0.095824 -11.20%6th Equipav 0.096040 -11.00%

Position BidderTariff

Offered Discount

2nd Triunfo 0.064746 -40.00%3rd Invepar-OAS 0.075418 -30.11%4th Equipav 0.077479 -28.20%5th Auto Rondon 0.083846 -22.30%6th Cegems 0.088486 -18.00%7th Odebrecht 0.097108 -10.01% Dom Pedro I Corridor

Mal. Rondon Leste Corridor1st CNO 0.101414 -6.02%

Position BidderTariff

Offered Discount

1st Brasinfra (Cibe+Ascende/L&L) 0.093774 -13.10%2nd BR Vias 0.104371 -3.28%

Position BidderTariff

Offered Discount

Page 89: Ccr day 4 presentation

São Paulo – 2nd Phase

A.Senna - C.PintoAuction Results

R$ (‘000) Tariff Cap 0.1079101st 2nd 3rd 4th 5th 6th

CCRCCRTariff Discount 0.048560 0.058899 0.077393 0.079734 0.095824 0.096040Desconto Tarifa 55.00% 45.42% 28.28% 26.11% 11.20% 11.00%IRR N/A 4.14% 9.95% 10.66% 15.90% 15.97%NPV ( ke) (643,906) (421,951) (10,631) 38,700 400,152 405,197( ) ( , ) ( , ) ( , ) , , ,Investments (R$) (878,470) (773,571) (559,768) (533,108) (460,575) (459,829)Year 00 0 0 0 0 0 0Year 01 (473,162) (455,178) (419,889) (415,380) (381,411) (380,923)Year 02 (172,038) (151,786) (113,566) (109,236) (79,164) (78,906)Year 03 (79,456) (58,226) (13,517) (8,067) 0 0Year 04 (75,565) (53,322) (6,532) (226) 0 0Year 05 (78,248) (55,059) (6,263) (198) 0 0Maximum Debt 488,717 488,717 488,717 488,717 488,717 488,717

Page 90: Ccr day 4 presentation

São Paulo – 2nd Phase

• Difference in traffic considering the tariffs c/11% c/55% %

1S 2009 27,052 36341 34.3%2S 2009 27,715 37213 34.3%

YEAR VEHICLE/YEAR

proposed by CCR and the winning consortium (TPI)

2 2010 56,078 75296 34.3%3 2011 57,760 77555 34.3%4 2012 60,070 80657 34.3%5 2013 62,736 84248 34.3%6 2014 65,395 91504 39.9%7 2015 68,114 95341 40.0%,8 2016 70,62 99226 40.0%9 2017 73,655 103174 40.1%10 2018 76,509 107212 40.1%11 2019 79,443 111364 40.2%12 2020 82,474 115654 40.2%13 2021 85 616 120099 40 3%13 2021 85,616 120099 40.3%14 2022 88,877 124713 40.3%15 2023 92,261 129499 40.4%16 2024 95,765 134453 40.4%17 2025 99,380 139565 40.4%18 2026 103,095 144818 40.5%19 2027 106 896 150192 40 5%19 2027 106,896 150192 40.5%20 2028 110,765 155666 40.5%21 2029 114,691 161219 40.6%22 2030 118,662 166837 40.6%23 2031 122,673 172513 40.6%24 2032 126,726 178246 40.7%25 2033 130 826 184043 40 7%25 2033 130,826 184043 40.7%26 2034 134,982 189918 40.7%27 2035 139,202 195878 40.7%28 2036 143,481 201920 40.7%29 2037 147,893 208150 40.7%30 2038 152,441 214572 40.8%

Page 91: Ccr day 4 presentation

Impact on Dutrap

R$ 7 90

R$ 7.90

R$ 7.90

R$ 4.20

R$ 4 20 - R$ 0 00

amoi

os

m P

edro

I

hang

e

irpor

t

R$ 4.20 R$ 0.00

A imagem não pode ser exibida. Talvez o computador não tenha memória suficiente para abrir a imagem ou talvez ela esteja corrompida. Reinicie o computador e abra o arquivo novamente. Se ainda assim aparecer o x vermelho, poderá ser necessário excluir a imagem e inseri-la novamente Sã P l

Nova DutraR$ 4.20 R$ 4.20 3.70

3.70

P 03

5

Ta

Dom

inte

rcAi

R$ 1.80

R$ 1.80

inseri la novamente. São Paulo

Ayrton Senna/Carvalho Pinto

R$ 1.80

R$ 1.70

R$ 1.70

R$ 1.70

R$ 1.70

R$ 1.30

R$ 1.30SP

R$ 3.50

R$ 5.20

$Charging of Vehicle/TruckCharging of only trucks

R$ 6.50

Extension A. Senna/C.Pinto

Page 92: Ccr day 4 presentation

Impact on Dutrap

Parateí Norte

Red ction in no of a les

Parateí Sul Jacareí

f

N D t

Reduction in no. of axles= 15,500/day = 15,500 x R$ 4.20 = R$ 65,100 / day = R$ 23.7M / year

R$ 4 20 3 70

= 14,000/day = 14,000 x R$ 4.20 = R$ 58,800 / day = R$ 21.5M / year

= 3.200/day = 3,200 x R$ 3.70 = R$ 11,840 / day = R$ 4.3M / year

Reduction in no. of axles Reduction in no. of axles

Tam

oios

Dom

Ped

ro I

nter

chan

ge

Airp

ort

A imagem não pode ser exibida. Talvez o computador não tenha memória suficiente para abrir a imagem ou talvez ela esteja corrompida. Reinicie o computador e abra o arquivo novamente. Se ainda assim aparecer o x vermelho, poderá ser necessário excluir a imagem e inseri-la novamente.

São Paulo

Nova DutraR$ 4.20 3.70

3.70

R$ 1.80 R$ 1.70 R$ 1.70 R$ 1.30SP 0

35

inR$ 1.80

Ayrton Senna/Carvalho Pinto

$

R$ 1.70 R$ 1.70 R$ 1.30

Parateí /Jacareí Complex

32,700/day

R$ 49.5M / year

Revenue in 2008 budget = R$ 270M

Reduction of 18.3%

NovaDutra

Reduction in no. of axles

Parateí /Jacareí Complex

Revenue in 2008 budget = R$ 730M

Reduction of 6.8% Charging of Vehicle/Truck

Extension A. Senna/C.Pinto

Page 93: Ccr day 4 presentation

Impact on Group CCRp p

Reduction in Dutra Revenue• R$ 49.5 Million / Year

• 6.8% of Dutra Revenue

Reduction in CCR Group RevenueReduction in CCR Group Revenue• R$ 49.5 Million / Year

• 1.7% of CCR Annual Gross Revenue

Page 94: Ccr day 4 presentation

Average Daily Volume at Dutra

250.000

Nor

te

250,000

g y

150 000

200.000

Para

teí N

200,000

150,000

Para

teí S

ul

Jaca

reí

Mor

eira

Cés

ar

Itatia

ia

Viúv

a G

raça

100.000

150.000150,000

100,000

50.00050,000

SP RJ

0

Km 205 Km 87 Km 319 Km 207Km 165Km 205

Km 181

Km 87 Km 319 Km 207

872,706 trips/day x 75,925 tolled trips/day

Page 95: Ccr day 4 presentation

Impact on Dutra

Estimated Toll Cost Reduction considering traveling the entire length of the highway

p

entire length of the highway

• Today R$ 33.40

• From Rio – São Paulo R$ 29.10 -12.42%

• From São Paulo – Rio R$ 28 10 -15 69%• From São Paulo – Rio R$ 28.10 -15.69%

Average Variation -14 05%Average Variation -14.05%

Page 96: Ccr day 4 presentation

Impact on Dutrap

R$ 7 90

R$ 7.90

R$ 7.90

R$ 4.20

R$ 4 20 - R$ 0 00

amoi

os

m P

edro

I

chan

ge

irpor

t

R$ 4.20 R$ 0.00

A imagem não pode ser exibida. Talvez o computador não tenha memória suficiente para abrir a imagem ou talvez ela esteja corrompida. Reinicie o computador e abra o arquivo novamente. Se ainda assim aparecer o x vermelho, poderá ser necessário excluir a imagem e inseri-la novamente Sã P l

Nova DutraR$ 4.20 R$ 4.20 3.70

3.70

P 03

5

Ta

Dom

inte

rcAi

R$ 1.80

R$ 1.80

inseri-la novamente. São Paulo

Ayrton Senna/Carvalho Pinto

R$ 1.80

R$ 1.70

R$ 1.70

R$ 1.70

R$ 1.70

R$ 1.30

R$ 1.30SP

R$ 3.50

R$ 5.20

$R$ 6.50Charging of Vehicle/TruckCharging of only trucksExtension A. Senna/C.Pinto

Page 97: Ccr day 4 presentation

Open Road Tollingp g

• No toll booth;

• Toll charged for each homogenous segment travelled;

• Toll paid at porticos installed on the highways;• Toll paid at porticos installed on the highways;

• No need to reduce speed.

Page 98: Ccr day 4 presentation

Estimated Reduction in Toll CostEstimated Reduction in Toll Cost

• Today R$ 33.40ORT S t R$ 11 50 65 5%• ORT System R$ 11.50 -65.5%

• Current Kilometer-based tariff R$ 0.0830 / kmORT System R$ 0 0286 / km 65 5%• ORT System R$ 0.0286 / km -65.5%

• Kilometer based tariff• Kilometer-based tariff Bid on Ayrton Senna R$ 0.0486 / km

Considering traveling the entire length of the highway

Page 99: Ccr day 4 presentation

Phase 2Phase 1 Phase 3

2004

CCR Group Timeline

2nd Public Offering and VO

AcquisitionNew Management

d20002001

20022003

2004

ViaOestePositioningIPO and Reorgani-zationStrategic

PartnerSearch for a

strategic partnerOperational

StartupOperational

...1998

19992000

Integrated Planning

Ambitious Project

ViaOeste

Operational Definition

Growth Project

PDE

j

Source: CCR

Natural Evolution of Organizational Structure and Corporate Governance

Page 100: Ccr day 4 presentation

CCR Group TimelinePhase 3

20072008...

20052006

•BrazilChil

New challenges and achievements

SP Subway Bid

-USA Bid

-Renovias

2007

Increased Interest in

RDN

•Chile•Mexico•USA•Porto Rico•Subway System•Other

Bid

RodoNorte

RodoAnel

Development, capital discipline and commitment tocommitment to

results.

Page 101: Ccr day 4 presentation

P U d St dPrograms Under Study

Page 102: Ccr day 4 presentation

Minas Gerais State Concession Program (Manifestation of Interest)of Interest)

Page 103: Ccr day 4 presentation

Minas Gerais State Concession Program (Manifestation of Interest)

406.7 3.646Divinópolis1

Tarifa (R$)Nº PraçasExtensão (km)RegiãoLote

6Divinópolis1

Tariff (R$)Number of

PlazasLength(km)RegionLot

of Interest)

407.2

336.9

334.8

3.656Uberaba4

3.026Curvelo3

3.086Pouso Alegre2

p

6Uberaba4

6Curvelo3

6Pouso Alegre2

p

322.7

265.7

393.8

472.6

3.475Uberlândia8

3.574Lago de Furnas7

3.027Montes Claros6

3.637Itajubá5

5Uberlândia8

4Lago de Furnas7

7Montes Claros6

7Itajubá5

346.0

276.0

273.9

3.725São João Del-Rei11

3.714Ouro Preto10

3.684Patos de Minas9

5São João Del-Rei11

4Ouro Preto10

4Patos de Minas9

321.2

339.7

266.4

233.7

3.455Poços de Caldas15

3.655Caxambu14

3.584Varginha13

2.515Formiga - Oliveira12

5Poços de Caldas15

5Caxambu14

4Varginha13

5Formiga - Oliveira12

365.3

417.6

915.780,2Total

3.276Araxá17

3.746Juiz de Fora - Ubá - Viçosa16

915,780.2Total

6Araxá17

6Juiz de Fora - Ubá - Viçosa16

Page 104: Ccr day 4 presentation

Federal Programg

BR 116 / 324 - BAHIA

• Contractual Rebalancing:

Marginal Flowg

Variable IRR

• Tariff Compensation:

Duplicate incidence of penalties

Disproportional values

Perpetuity of certain discounts

Page 105: Ccr day 4 presentation

Federal Program

CND Resolution 14/07

g

BR 116/MG Border of BA/MG – Gov. Valadares – Itanhomi 422.1 km

BR 116/MG Itanhomi – Leopoldina – Border of MG/RJ 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 Interchange BR 135 – Três Marias – Border of MG/GO 424.0 km

BR 040/GO Border of MG/GO – Cristalina – Border of GO/DF 157.3 km

BR 040/DF Border of GO/DF Interchange DF 001 Brasília 8 4 kmBR 040/DF Border of GO/DF – Interchange 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 – Border of BA/MG 680.70 km

Page 106: Ccr day 4 presentation

Brasília Subwayy

Page 107: Ccr day 4 presentation

Brasília Subway

History

y

• 11/06/2007 – Publication of Call for Manifestation of Interest

• 11/22/2007 – CCR presents itself as interested

• 12/17/2007 – Codeplan authorizes CCR to conduct the studies

• 05/19/2008 – CCR presents the studies

• This study reflects the scenario as of April/2008• This study reflects the scenario as of April/2008.

Page 108: Ccr day 4 presentation

Brasília Subway

PPP Proposal Benefits

y

• Total reduction in the Federal District government expenditures (funding+ investments) of R$ 1,400 MM from 2009 through 2016.

• Future subway operation and maintenance costs, which will be paidthrough pecuniary consideration, are lower than current amounts spenton the maintenance agreement alone (R$ 68 MM / year)on the maintenance agreement alone (R$ 68 MM / year).

• Quality standards comparable to the world’s best subways will berequired (a portion of the future Concessionaire’s compensation will berequired (a portion of the future Concessionaire s compensation will beclosely linked to performance).

• Improvement in service quality – User x Clientp q y

Page 109: Ccr day 4 presentation

Airport Expressp p

Airport Express

Project

Page 110: Ccr day 4 presentation

Other Businesses Under Studyy

• Secondary Market

• Other Subway Systems

Page 111: Ccr day 4 presentation

Blue Ocean Strategy

Avoid predatory Red Ocean competition

Blue Ocean Strategy

Differentiated Approach to Business Management;strengthening innovative Blue Ocean operation

Audacity in winning strategic businesses;

New Markets;

New Businesses.

Page 112: Ccr day 4 presentation

New BusinessesNew Businesses

• Mexico• Mexico

•USA

• Chile

•Central America

Page 113: Ccr day 4 presentation

Mexico – Asset Utilization (FARAC 2) ( )

PACOTE Convocatória para

Autopistas (KM)FARAC PACKAGE Bid Notice

HIGHWAYS (KM)FARAC

Noreste

Pacific

October 2008383793043

February 20087964263702

TotalNovasExistentes para

383793043

7964263702

TotalNewsExistents

Michoacán

Mexico Gulf

Noreste

2 semester 20094021292735

1 semester 20098324803524

October 2008383793043

4021292735

18324803524

383793043

2 semester 20101243193Sureste7

Centre 1 semester 20103161871296

212431937

13161871296

Sonora

Del Sol

2 semester 2011551824699

1 semester 20114481582908

2551824699

14481582908

In addition to FARAC 1, another 8 packages are envisaged.

3.8531.5722.281TOTAL 3,8531,5722,281TOTAL

Page 114: Ccr day 4 presentation

Mexico - FARAC 3

•The 5 roads are part of the Northeast network (flow to the USA).Th 4 b id i t ti l ( i b d )•The 4 bridges are international (crossing borders).

MexicaliTijuana

Ci d d J á

MexicaliTijuanaTijuana

Ci d d J áCi d d J á

Hermosillo Chihuahua

Nogales Ciudad Juárez

Nuevo Laredo

Piedras NegrasHermosillo Chihuahua

NogalesNogales Ciudad JuárezCiudad Juárez

Nuevo Laredo

Piedras Negras

Cancún

La Paz CuliacánDurango

Saltillo

CiudadVictoria

ZacatecasAguascalientes

San Luis Potosí

MonterreyMatamoros

Mazatlán

TampicoProgreso

Torreón

Cancún

La Paz CuliacánDurango

Saltillo

CiudadVictoria

ZacatecasAguascalientes

San Luis Potosí

MonterreyMatamoros

Mazatlán

TampicoProgreso

Torreón

GuadalajaraTepic

T tla G tiérre

Chetumal

Mérida

Campeche

Aguascalientes

Jalapa

PotosíQuerétaro

ChilpancingoOaxaca

ColimaVilla Hermosa

México D.F.PueblaCuernavacaManzanillo

Lázaro Cárdenas

ProgresoTuxpan

Veracruz

AtlacomulcoEcuandureo

MoreliaToluca

GuadalajaraTepic

T tla G tiérre

Chetumal

Mérida

Campeche

Aguascalientes

Jalapa

PotosíQuerétaro

ChilpancingoOaxaca

ColimaVilla Hermosa

México D.F.PueblaCuernavacaManzanillo

Lázaro Cárdenas

ProgresoTuxpan

Veracruz

AtlacomulcoEcuandureo

MoreliaToluca

Ciudad Hidalgo

Salina CruzTuxtla GutiérrezAcapulco

HuatulcoCiudad Hidalgo

Salina CruzTuxtla GutiérrezAcapulco

Huatulco

Page 115: Ccr day 4 presentation

USAUSA

Page 116: Ccr day 4 presentation

Porto Rico

• Program postponed to 2009

Page 117: Ccr day 4 presentation

Chile

• Secondary MarketSecondary Market

Page 118: Ccr day 4 presentation

Blue Ocean Strategy

Avoid predatory Red Ocean competition

Blue Ocean Strategy

Differentiated Approach to Business Management;strengthening innovative Blue Ocean operation

Audacity in winning strategic businesses;

New Markets;

New Businesses.

Page 119: Ccr day 4 presentation

New Businesses

• Urban Mobility

New Businesses

Urban Mobility

• AVI

• ITV

L i ti Pl tf• Logistics Platforms

Page 120: Ccr day 4 presentation

Development...p

Capital Discipline...

Commitment to results.

Page 121: Ccr day 4 presentation

Final Remarks

Page 122: Ccr day 4 presentation

Development...p

Capital Discipline...

Commitment to results.

Page 123: Ccr day 4 presentation

Net Revenue – 2001 - 2008ENet Revenue 2001 2008ECCR Consolidated

2,500

3,000

1,500

2,000

500

1,000

0

Net Revenue 870 1 000 1 139 1 463 1 954 2 145 2 353 2 700

2001 2002 2003 2004 2005 2006 2007 2008E

Net Revenue 870 1,000 1,139 1,463 1,954 2,145 2,353 2,700

Increase 0.00% 14.94% 13.88% 28.44% 33.57% 9.75% 9.68% 14.76%

Page 124: Ccr day 4 presentation

EBITDA – 2001 - 2008EEBITDA 2001 2008ECCR Consolidated

1,600

1,800

2,000

1,000

1,200

1,400

400

600

800

0

200

2001 2002 2003 2004 2005 2006 2007 2008E

EBITDA 441 472 571 759 1,103 1,206 1,454 1,750

Increase 7.03% 20.94% 32.95% 45.23% 9.39% 20.52% 20.37%

Page 125: Ccr day 4 presentation

Net Income – 2001 - 2008ENet Income 2001 2008E

CCR Consolidated

700

800

300

400

500

600

0

100

200

300

(200)

(100)

2001 2002 2003 2004 2005 2006 2007 2008E

Net Income (125) (119) 183 263 500 547 584 700

Increase -4.80% 253.74% 43.75% 90.31% 9.35% 6.64% 19.95%

Page 126: Ccr day 4 presentation

Dividends – 2001 - 2008EDividends 2001 2008E

CCR H ldiCCR Holding

600

700

400

500

600

200

300

0

100

2001 2002 2003 2004 2005 2006 2007 2008E

Dividends 0 0 30 151 302 355 542 604

Increase 0.00% 0.00% 402.73% 100.46% 17.33% 52.72% 11.49%

Page 127: Ccr day 4 presentation

Share Price – 2001 - 2007Share Price 2001 2007

CCR Holding

30.00

35.00

20.00

25.00

10.00

15.00

0.00

5.00

Share Price (in R$) 4.44 1.85 6.45 14.53 18.50 27.70 30.96

2001 2002 2003 2004 2005 2006 2007

Page 128: Ccr day 4 presentation

Operational Efficiency CCR – 2001 - 2008EOperational Efficiency CCR 2001 2008ECurrency

Figures in R$ x MMFigures in R$ x MM

YEAR

2001 2008E Chg.

Net Revenue 870 2,700 210.24%

EBITDA 441 1,750 296.61%, 50 96 6 %

EBITDA Margin 51% 66% 30.18%

Net Income (125) 700

Dividends Paid 0 604

Share Price (in R$) 4.44 ???( )

Page 129: Ccr day 4 presentation

Development...p

Capital Discipline...

Commitment to results.


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