apimec res 2005 ingl
TRANSCRIPT
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2005 Earnings Results2005 Earnings ResultsPublic MeetingPublic Meeting
March, 2006March, 2006
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Disclaimer
This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of OHL Brasil.
These are merely projections and, as such, are based exclusively on the expectations of OHL Brasil’s management concerning the future of the business and its continued access to capital to fund the Company’s business plan.
Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry and are, therefore, subject to change without prior notice.
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Outlook
Company Profile
2005 Results
2005 Highlights
Agenda
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Outlook
Company Profile
2005 Results
2005 Highlights
5
Organizational Structure and Ownership Restructuring
Advanced stage of the ownership restructuring to rationalize and simplify our organizational structure.
OtherBusinesses
100.0% 100.0% 100.0%
51.1%
FREE FLOAT
8.9%
100.0%
40.0%
International Group of construction, concession and services
Founded over 90 years ago
Established in 16 countries
Listed in Spain since 1991
One of the six most transparent companies in Spain in 2005
2 independent core businesses: Construction and Concessions
2005 Net Revenue: € 2.4 billion; and 2005 EBITDA: € 285.4 million
1995–2005 CAGR Revenues of 32%
Present in the Brazilian market through OHL Concesiones
Group OHL
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OHL Concesiones
140.060%Autopista del Sol
20%Muelle Inflamables Barcelona
50%Puerto de Alicante
Airports
(Km)(%)
100%Autovia M -45
100%Autopista Nuevo Aeropuerto Barajas
50%Aeropuerto Internacional de México
70%Autopista Ezeiza -Cañuelas
77%
100%
58%
60%
60%
60%
Ports Concessions
51,7Sistema Carretero del Oriente
92,4Camino Internacional Ruta 60
82,0Autopista Los Libertadores
Centrovias
Autovias
Intervias
60%Autopista del Sol
20%Muelle Inflamables Barcelona
50%Puerto de Alicante
Extension (Km)
Part.(%)
Toll road Concession
100%Autovia M -45
8.2100%Autopista Nuevo Aeropuerto Barajas
50%Aeropuerto Internacional de México
100%
58%
60.1Autopista Ezeiza -Cañuelas
51.7Sistema Carretero del Oriente
92.4Camino Internacional Ruta 60
82.0
219.5Centrovias
316.5Autovias
371.2Intervias
Mexico
Argentina
ChileBrazil
Spain
The Brazilian operation is strategic for OHL Concesiones in its growth process
67% 123.0Autopista Amozoc Perote
8.3
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• Population of more than 4 mm people
• One of the main agribusiness centers in Brazil
• Responsible for 32% of domestic alcohol and 70% of exported orange juice
Location
The State of São Paulo accounts for approximately 22% of Brazilian population and 35% of the country’s GDP.... to the Northeast from the city of São Paulo...
Operating Area Map
OHL Brasil’s toll roads are the main access from productive areas to:
São Paulo: main consumer center
Porto de Santos: largest national export corridor
... allows OHL Brasil to benefit from expansion effects of the industrial and agribusiness activities.
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Corporate Governance
•Bovespa’s Novo Mercado
•Support and strategic commitment from Group OHL.
•Transparency and Protection to minor shareholders’ interest.
•100% Tag-Along.
•Capital Structure with 100% of ordinary shares (equality of rights for minor shareholders).
•Capital with a 40% free float.
•Board of Directors with 5 members, being one independent.
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Outlook
Company Profile
2005 Results
2005 Highlights
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2005 Highlights
•3% traffic growth, while GDP grew 2.3%. Elasticity = 1.3
•12% Net Revenue growth (pro forma). 9.08% tariff readjustment.
•Adjusted EBITDA grows 15.1% (pro forma). Margin jumps 1.7 b.p., reaching 63.4%.
•Net Income totals R$76.8 million. The margin was 19.7%.
•We concluded the main investments in Autovias and Intervias.
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Outlook
Company Profile
2005 Results
2005 Highlights
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Consolidated Traffic Performance (Million of Equivalent-Vehicles)
3Q054Q04 4Q05
0.2%
-2.9%
23.2
33.9
55.7
81.0
2002 2003 2004 2004 (pf) 2005
83.4
4.6 4.7 4.6
4.9 4.9 4.8
11.6 12.3 11.7
CAGR: 55.0
%
CAGR: 53.2
%22%
23%55%
Traffic Breakdown - 2005
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Traffic and GDP Performance
2.4%
-1.8%
6.7%
3.0%
4.7%
1.9%
0.5%
4.9%
2.8%2.3%
2002 2003 2004 2005 1Q05
6.6%
1.0%
0.2%
4.0%
1.0%1.4%
2Q05 3Q05 4Q05
OHL Traffic
GDP
1.23
Elasticity in the period
-3.28 1.35 1.30 1.67 1.65 1.02 0.11
Comparison with the same period of the previous year:
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Tariff Readjustment vs. IGP-M vs. IPCA (%)
7.0 7.8
17.2
5.28.9
31.5
7.0 9.18.9
24.0
14.09.1
2002 2003 2004 2005
IPCA - LTM IGPM - LTM Tariffs
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Net Revenue (R$ million)
CAGR: 70.1
%
92.7
158.8
268.3
347.3
2002 2003 2004 2004 (pf)
389.1
2005
CAGR: 61.3
%
10.4%
-1.6%
3Q054Q04 4Q05
25.2 28.7 29.1
30.3 32.1 32.2
38.544.7 42.5
27%
31%
42%
Revenues Breakdown - 2005
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Total Costs
17%
35%38%
4%6% Personnel
Third party services, maintenanceand others Depreciation
Amortization of fixed concession
Variable Charge (3%)
Total Costs Breakdown - 2005
69.1 65.656.1 57.3 55.1
2002 2003 2004 2004 (pf) 2005
Total Costs Margin (%)
Total Costs* Var % (pf) Var % (R$ thousand) 2005/2004 2005/2004
Personnel -37,536 -33,111 -22,504 13.4% 66.8%Third party services, maintenance and others -75,764 -74,416 -57,195 1.8% 32.5%Depreciation -78,539 -70,263 -54,898 11.8% 43.1%Amortization of fixed concession charge -9,364 -9,386 -6,981 -0.2% 34.1%Variable Charge (3%) -13,399 -11,906 -8,959 12.5% 49.6%Total -214,602 -199,082 -150,537 7.8% 42.6%
* Cost of Services Provided + General and Administrative Expenses + Tax Expenses.
2005 2004 (pf) 2004
charge
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Adjusted EBITDA
Adjusted EBITDA Margin (%)
58.857.7
62.861.7
63.4
2002 2003 2004 2004 (pf) 2005
CAGR: 75.7
%
54.5
91.7
168.3
214.4
2002 2003 2004 2004 (pf)
246.8
2005
CAGR: 65.4
%
Adjusted EBITDA (R$ Million)
Var % (pf) Var % 2005/2004 2005/2004
Net Services Revenues 389,135 347,332 268,267 12.0% 45.1%Total Costs* -214,602 -199,082 -150,537 7.8% 42.6%Amortization and Depreciation 87,903 79,649 61,879 10.4% 42.1%Other Revenues** - 959 959 -100.0% -100.0%EBITDA 262,436 228,858 180,568 14.7% 45.3%Fixed concession charge paid -15,638 -14,465 -12,230 8.1% 27.9%Adjusted EBITDA 246,798 214,393 168,338 15.1% 46.6%% Adjusted EBITDA without Net Revenue 63.4% 61.7% 62.8%
* Cost of Services Provided + General and Administrative Expenses + Tax Expenses.** The R$6,371 thousand from equity result was not considered in the EBITDA and Adjusted EBITDA calculation.
2004Adjusted EBITDA (R$ thousand) 2005 2004 (pf)
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12,4
1,22004 2005
Net Financial Result
74%
19%
7%
46%
26%
28%
20052004
BNDES/CEF BNDES/CEF
Other Fin.
Monetary correction of concession
charge
Financial Expenses Breakdown (% of total) IGP-M Evolution (%)
-90,3%
Var % (pf) Var % 2005/2004 2005/2004
Financial Revenues 21,007 11,020 9,527 90.6% 120.5%Financial Expenses -50,989 -84,069 -65,648 -39.3% -22.3%BNDES/CEF -37,934 -38,995 -30,252 -2.7% 25.4%Other Financial Expenses -9,489 -23,107 -17,297 -58.9% -45.1%Monetary correction of fixed concession charge -3,566 -21,967 -18,099 -83.8% -80.3%Net Financial Result -29,982 -73,049 -56,121 -59.0% -46.6%% Net Services Revenue 7.7% 21.0% 20.9%
2004Net Financial Result (R$ thousand) 2005 2004 (pf)
Monetary correction of concession charge
Other Fin.
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Indebtedness
... 100% of the Company’sdebt is denominated in R$
Total Debt (R$ MM)
Charges (December/2005)Amortization Schedule (R$ MM)
Net Debt (R$ MM)
TJLPCDIUNBNDES
88%
9%
3%
51.052.1 67.7
255.3 236.0
276.3307.4 30.7
4Q054Q04 1Q05
Short term debt Long term debt
66.0
224.0
290.0
2Q05
67.4
216.0
283.4
3Q05
225.3
Net Debt / Adjusted EBITDA (Last 12 month)
250.5236.6
207.6
91.7
4Q04 1Q05 2Q05 3Q05
118.2
4Q05
1.5x 1.2x0.9x
0.4x 0.5x
51.0
70.2
51.4 52.4
44.2
7.1
2006 2007 2008 2009 2010 2011
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Net Income (R$ million)
24.0 23.6
3Q05 4Q05
5.6
322.
9%
-1.6%
4Q04
(8.2)
3.2
25.2 24.4
2002 2003 2004 2004 (pf)
76.8
2005
204.
2%
CAG
R: 3
89.9
%
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Capex (R$ million)
Conclusion of Autovias’ and Intervias’ “main construction program”
Centrovias expected to be concluded in 2007.
Schedule
24%
23%
53%
CAPEX Breakdown - 2005CAPEX (Actual and Estimated)
169.1
191.8200.0
120.0
80.0
55.0
2004 2005 2006E 2007E 2008E 2009E
Total Capex estimated for2007 to 2009
255.0
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Outlook
Company Profile
2005 Results
2005 Highlights
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New Biddings: Federal, State and PPP
Federal lots:Road axles are strategic in the interconnection of the richest Brazilians regions
State lots (SP):Potential export corridor through the Port of SãoSebastião
02
07
Lot ASP 70 - Rodovia A.Senna/Carvalho Pinto
167.5 Km 02Lot B
SP 65 - Rodovia D. Pedro I118.5 Km 04
286.0 Km 06
Lot 1 BR 153/ SP - Divisa MG/SP 321.7 KmLot 2 BR 116/PR/SC - Curitiba - Divisa SC/RS 406.5 KmLot 3 BR 393/RJ - Divisa MG/RJ (Via Dutra) 200.5 KmLot 4 BR 101 - Divisa RJ/ES (Ponte Rio Niterói) 320.8 KmLot 5 BR 381- Belo Horizonte - São Paulo 561.5 KmLot 6 BR 116/SP/PR - São Paulo - Curitiba 401.7 KmLot 7 BR 376 - Curitiba - Florianópolis 367.6 Km
2,580.3 Km
04 05030508060536
PPP MG 050 (MG):Large potential of synergy with our toll roads network.
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PPP 372.0 Km 06MG 050 – Betin – Divisa SP I
Section Extension # of Toll Plazas
Section Extension # of Toll Plazas
Section Extension # of Toll Plazas
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Investor Relations
OBRASCON HUARTE LAIN BRASIL S.A.
Contacts OHL Brasil S.A.: Address:
Rua Pedroso Alvarenga, 990 – 5ºItaim Bibi – São Paulo – SPCEP 04531-004Tel.: (5511) 3074-2404
Francisco Leonardo MouraFrancisco Leonardo Moura da Costada CostaCFO and [email protected]
Alessandro Scotoni LevyAlessandro Scotoni LevyFinancial and Investor Relations [email protected]