Download - 4 conference call 1 q08
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Conference Call
May 16, 2008
1Q08 Earnings Results
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Overview
Controlling shareholder broad experience. OHL Concesiones;
Consistent cash generation and financial strength. Strong Adjusted EBITDA growth andlow indebtedness level;
Potential for Growth. High potential for expansion through Public Auction and Acquisitionsin the Secondary Market;
NOVO MERCADO. Corporate governance best practices (Bovespa’s Novo Mercado –OHLB3, with a 40% free float).
OHL Brasil is the largest road operator in the country in terms of managed kilometers,with 3,226 km. OHL Brasil manages 25% of the total Brazilian toll roads currently underconcession in Brazil.
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New Portfolio
High Market-Share. After the our performance in the last Federal Roads Auction, we haveincreased our market share from 9% to 25% in terms of managed kms;
Privileged Location. OHL Brasil consolidated its participation in the main economic axesof the country;
Large Population. We have incremented our participation in a region with high populationdensity, 77 hab./km² against 22 hab./km² in the national average. There are approximately35 million people living close to our highways. If we considering the States in which weoperate they are 90 million people or 50% of the Brazilian population;
Fleet of Vehicles. The States in which we operate hold more than 2/3 of the Brazilian fleetof vehicles, according to Anfavea.
The 5 toll roads won by OHL Brasil in the last auction promoted by ANTT added 2,078kilometers of highways in the portfolio managed by the Company, which became with3,226 km under management.
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Traffic Performance
Traffic Performance (in ‘000 equiv.-vehicle) Traffic Performance (in ‘000 equiv.-vehicle) – “Autovias adjust.”
Autovias Adjustment: Traffic’s Average in São Simão and Sta. Rita toll plazas in 4Q07 and 1Q08
Vianorte
Intervias
Autovias
Centrovias
8,7239,2735,036
5,2384,940
11,75912,833
11,384
6,6397,064
6,257
5,553
32,35934,724
27,617
1Q084Q071Q07
17.2%
- 6.8%
5,8846,2165,036
5,2384,940
11,75912,83311,384
6,6397,0646,257
5,553
29,52031,667
27,617
1Q084Q071Q07
6.9%
- 6.8%
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Toll Tariff Performance
Average Toll Tariff (R$) Average Toll Tariff (R$) – “Autovias adjust”
- 3.8%
0.4%
5.40
5.20 5.22
0.3%
5.9%
5.40
5.70 5.72
1Q084Q071Q07 1Q084Q071Q07
Autovias Adjustment: Traffic’s Average in São Simão and Sta. Rita toll plazas in 4Q07 and 1Q08
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Net Revenue Performance
31,964 42,096 39,769
32,71438,289 36,326
41,15648,312 44,364
31,831
37,98335,553
137,666
166,680156,012
13.3%
- 6.4%
Vianorte
Intervias
Autovias
Centrovias
Net Revenue (in R$ thousand)
Electronic Toll - AVI (% Toll Revenue)
1Q084Q071Q07
25%
23%
29%
23%
Net Revenue per Concessionaire
46,9%46,4%44,6%
49,7%49,1%46,3%
46,7%45,6%44,2%
45,1%45,4%41,4%
47,1%46,5%44,2%
1Q084Q071Q07
46.9%46.4%44.6%
49.7%49.1%46.3%
46.7%45.6%44.2%
45.1%45.4%41.4%
47.1%46.5%44.2%
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Adjusted EBITDA and Margin
Adjusted EBITDA (in R$ thousand)
79,847
104,36793,027
58.0%
62.6%
59.6%
1Q07 4Q07 1Q08
16.5%
- 10.9%
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Financial Result
IGP-M (FGV)
1.11%
3.54%
2.38%
1Q07 4Q07 1Q08
50.3%
23.4%23.2% BNDES/CEF
26.6%
26.3%
40.5% Other financial expenses
30.6%
17.4%
36.3% Monetary correction of fixed concession charge
1Q07 4Q07 1Q08
Financial Expenses Breakdown (% total of the financial expenses)
Financial revenues 5,030 2,209 2,190 (0.9%) (56.5%)Financial expenses (24,360) (33,851) (32,652) (3.5%) 34.0% BNDES/CEF (8,700) (7,933) (7,587) (4.4%) (12.8%)Other financial expenses (9,991) (8,891) (13,217) 48.7% 32.3% Monetary Correction of Fixed Concession Charge (5,669) (17,027) (11,848) (30.4%) 109.0% Net Exchange Variation 26 (119) (21) (82.4%) (180.8%)Net Financial Result (19,304) (31,761) (30,483) (4.0%) 57.9% % Net Revenue 14.0% 19.1% 19.5%
Var % 1Q08/4Q07
Var % 1Q08/1Q07Financial Result (in R$ thousand) 1Q084Q071Q07
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Net Income
Results Evolution (in R$ thousand)
9,152
18,346 -2,763-3,798
-11,179
-56 -824 8,878
Net Income 1Q07
Net Income
1Q08
Net. Revenue
Costs Expenses.G&A
Financ..Result.
NonOper.Result.
IT/SC
- 3.0%
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Debt Structure
Gross Indebtedness (in R$ million) Leverage Ratio and Net Debt (in R$ million)
Debt Cost Breakdown Amortization Schedule (in R$ million)
215 199 186263 250 246
110 116316
52 75 76
327 335 291407 394
375266 274 262
590 585 537 517 511
691
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08
Short Term Long Term
103 200 204
429 420 467 456 429 416
0.4x
0.8x 0.8x
1.4x 1.5x1.3x
1.1x 1.1x
1.5x
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08
Net Debt Net Debt / Adj. EBITDA (LTM)
56.5%53.5%
42.4%45.1%
0.7% Other1.1%1.4%
39.6% TJLP
59.6% CDI
1Q084Q071Q07
316
71
260
24 14 6
apr/08 tomar/09
apr/09 todec/09
2010 2011 2012 2013
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CapEx
CapEx Breakdown 1Q08
R$ 49.6 million
Federals
Other
188
250
210
118
7050 47
2006 2007 2008/E 2009/E 2010/E 2011/E 2012/E
Estimated CapEx – STATE (in R$ thousand)
776
1,196986
831
368
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Estimated CapEx* - FEDERAL (in R$ thousand)
* Estimated CapEx in our proposals (date based jul/07)
23%
33%
11%
16%
15%
2%
Initial work of road recovery
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Share Performance – OHLB3
116.3
110.2
70
80
90
100
110
120
01/17/08 02/06/08 02/26/08 03/17/08 04/06/08 04/26/08 05/12/08
145.3
272.3
100
150
200
250
300
oct-05 jan-06 apr-06 jul-06 oct-06 jan-07 apr-07 jul-07 oct-07 jan-08 apr-08
OHLB3Ibovespa
10
30
50
70
oct-05 jan-06 apr-06 jul-06 oct-06 jan-07 apr-07 jul-07 oct-07 jan-08 apr-080100
300
500
700
Daily Volume TradedVolume Traded MA 90 traded Shares Traded MA 90 trades
Dat
e ba
sed
07/1
5/05
= 1
00
In R
$ m
illion
Thou
sand
Sha
res
Dat
e ba
sed
12/2
8/07
= 1
00
Until 05/12/2008
Performance Share in 2008
Performance Share since IPO Volume Traded x Shares Traded
Federal Auction
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2nd Round of São Paulo State Concessions. 5 lots, totaling 1,500 kms. Estimated tooccur even in 2008. The roads are Ayrton Senna/Carvalho Pinto, Dom Pedro I, RaposoTavares, Marechal Rondon (Leste e Oeste);
3rd Round of Federal Concessions. Totaling 4,059 km. Estimated to occur even in 2008;
Minas Gerais State. 16 lots with 7,000 kms. Estimated to occur in 1H09;
Federal Concessions in Bahia State . 637 km. Estimated to occur in 2H08;
PPP’s (Public and Private Partnerships);
Secondary Market.
OHL Brasil maintains its aim to grow and develop the Brazilian market of toll roadconcessions. To do this we continue to analyze new opportunities in the sector.
New Opportunities
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This presentation contains forward-looking statements relating to the prospects of thebusiness, estimates for operating and financial results, and those related to growthprospects of OHL Brasil. These are merely projections and, as such, are basedexclusively on the expectations of OHL Brasil’s management concerning the future ofthe business and its continued access to capital to fund the Company’s business plan.
Such forward-looking statements depend, substantially, on changes in marketconditions, government regulations, competitive pressures, the performance of theBrazilian economy and the industry and are, therefore, subject to change without priornotice.
Notice