presentation ccr day 8
DESCRIPTION
TRANSCRIPT
Disclaimer
2
This presentation may contain certain forward-looking projections and trends that neither
represent realized financial results nor historical information.
These forward-looking projections and trends are subject to risk and uncertainty, and
future results may differ materially from the projections. Many of these risks and
uncertainties are related to factors that are beyond CCR’s ability to control or to estimate,
such as market conditions, currency swings, the behavior of other market participants, the
actions of regulatory agencies, the ability of the company to continue to obtain financing,
changes in the political and social context in which CCR operates or economic trends or
conditions, including changes in the rate of inflation and changes in consumer confidence
on a global, national or regional scale.
Readers are advised not to fully trust these projections and trends. CCR is not obliged to
publish any revision of these projections and trends that should reflect new events or
circumstances after the realization of this presentation.
“Invest, diversify and grow: CCR 2020”
CCR Day Agenda
Highlights of current operations
• ARTESP, ViaQuatro and STP
concessions | Italo Roppa
• ANTT, Rio de Janeiro, Paraná, SAMM
and Controlar concessions | José Braz
• Sustainability: Responsible social
investment | Francisco Bulhões
12 pm
1 pm Performance and the Company’s
future | Arthur Piotto
1:30 pm Closing remarks, Q&A session and
lunch | Renato Vale
8 am
9 am
9:15 am
Registration and breakfast.
Opening and welcome (video) | Renato Vale
Opportunities and challenges for the city of Rio
de Janeiro| Eduardo Paes
• Infrastructure for the 2014 World Cup, 2016
Olympics and the legacy for the city.
10:15 am Q&A session and coffee break
11 am Overview of high-quality growth for CCR Group:
• Airport, toll road, urban mobility and logistics
markets | Leonardo Vianna
Opening and welcome
“Invest, diversify and grow: CCR 2020”
Renato Vale
Back in 2009...We had overcome challenges, developed the
company’s structure and strengthened our corporate governance
Our past
1998
1999 2000
2001
2002
2003 2004
2005
1998-2005
Corporate
Restructuring Def. initial
operations
R$ 334 mn
Follow-on
Offering
• Company’s incorporation;
• Strategic partner;
• Corporate restructuring;
• Access to capital markets. 4-year Average ROE: 33.2%
EBITDA: R$ 1.1 bn
EBITDA Margin: 56.4%
With capital discipline and a strong focus on profitability,
we prepared the company for a new level of operations
Our present
1998 1999
2000 2001
2002 2003
2004 2005
Corporate
Restructuring Def.
initial
operations
Fol
lo
w
on
R$
33
4m
2006
2007 2008
2009
R$ 1,235 mn
Follow-on
Offering
Past 4-year Average ROE: 38.9%
• 4-year Average ROE: 33.2%;
• EBITDA: R$ 1.1 bn;
• EBITDA Margin: 56.4%.
• Pursuit of consolidation
• Portfolio diversification;
• Preparation for future.
1998-2005 2006-2009
EBITDA: ~ R$ 2 bn
Margin ~ 64%
Unique moment for CCR, with favorable
competitive and macroeconomic environments.
Our future
Past
• 4-year Average ROE: 33.2%;
• EBITDA: R$ 1.1 bn;
• EBITDA Margin: 56.4%.
1998-2005 2006-2009
Past
• 4-year Average ROE : 38.9%;
• EBITDA: ~R$ 2 bn;
• EBITDA Margin: ~ 64%.
New Opportunities
• 2014 World Cup;
• 2016 Olympic Games;
• Infrastructure Deficit;
• Various opportunities.
Develop potential of
current portfolio
• Reduce escape routes;
• Maximize ancillary revenues;
• Contractual addenda;
• Increase collection base;
• Expand capacity of current portfolio.
• Secondary market;
• Metro;
• Logistics;
• Urban mobility.
Next 5 years
EBITDA
2016E
R$ 5.5 to 6.5 bn
R$ 3.3 bn
Doubling EBITDA
Our goal is to double EBITDA
by 2016, considering only
the current portfolio
EBITDA
2012E
R$ 3.3 bn
EBITDA 2012E¹ Yesterday’s
average price EV/EBITDA
R$ 3.3 bn R$ 17.70
share 11.7 X
EBITDA 2016 Price 2016
? R$ 5.5 bn
to 6.5 bn
With 1.8x Net Debt/EBITDA
and Same Multiple...
Thinking boldly and considering only our current portfolio…
General overview of high-quality growth for the CCR Group
Airport, toll road, urban mobility
and logistics markets.
“Invest, diversify and grow: CCR 2020”
Leonardo Vianna
Airports in Portugal ANA
Depart. + Arriv. 285,041
Airports 10
PAX (‘000) 30,089
Cargo [ton] 158,542
ANA GROUP
State Privpublic
31.44%
70% 100%
Lisbon
Airport
Porto
Airport
Faro
Airport
Açores
Airport
Beja*
Airport
Funchal and
Porto Santo
Airports
10%
68.56%
20%
Autonomous
Madeira
Region
Structure of ANA & TAP Group
TAP
TAP
Maintenance
TAP Maintenance
Brazil
Handling
100%
Operating Structure 2011
ANA Airports in Portugal
Depart. + Arriv. 285,041
Airports 10
PAX (‘000) 30,089
Cargo [ton] 158,542
ANA Group
ANA Airports in Portugal
State Privpublic
31.44%
70% 100%
Lisbon
Airport
Porto
Airport
Faro
Airport
Açores
Airports
Beja*
Airport
Funchal and
Porto Santo
Airports
10%
68.56%
20%
Autonomous
Madeira
Region
TAP
TAP
Manutenção
TAP Manutenção
Brasil
Handling
100%
ANA & TAP Group Structure
Process characteristics
Estimated timetable
Concession term: 50 years
Schedule September October November December
Process /
Bids
Financial indicators 2011 for ANA Group
10 Airports
Considered -
4.6%
21.6%
6.6 p.p.
37.6%
-10%
44.9%
Gross
Revenue € 424.9 mn
€ 199.8 mn EBITDA
47.0% EBITDA Margin
€ 76.5 mn Net Income
1.8 Debt Ratio
€ 39.5 mn Dividends paid
Δ 2011/2010
Payroll Outsourcing Other
2006 2007 2008 2009 2010 2011
213
237
259 240
254 239
104 109 122 114 121 108
97
111 121 116 116 111
Operating expense [€ million]
+2%
EBITDA [€ million]
+12%
Source: Accounting Management Report of the ANA Group 2011
Air Force
Security and PMR’s
Commercial
Total revenue [in million €]
Retail
Property develop.
Parking
Car Rental
Advertising
Other
48%
3%
16%
16%
13%
4%
30%
57%
13%
High-speed rail project São Paulo - Rio
SP RJ
New operations Rio de Janeiro – Campinas HSR Project
New operations Rio de Janeiro – Campinas HSR Project
Campinas
São Paulo
Rio de Janeiro
New operations Rio de Janeiro – Campinas HSR Project
Source: EPL
Concession auction, maintenance of HSR system and supply of permanent rail infrastructure, systems and rolling stock.
1
Total investment:
• By concessionaire: R$ 8.7 bn + R$ 5 bn*;
• By government: R$ 26.9 bn.
Executive project prepared by government in accordance with the technology parameters offered. 2
Construction of rail infrastructure and associated facilities and buildings. 3
Urban mobility Light Rail Transit in Rio de Janeiro
SP RJ
Urban mobility LRT Rio Project
RJ
Urban mobility LRT Rio Project
Investment: R$ 1.2 bn.
Source: public hearing
• Length of basic line: 28km;
• No. of stations and stops: 46;
• Fleet: 32.
Concession term: 30 years from start order.
Urban mobility
Sources R$ mn %
PAC Program 532 46%
Municipal Gvt. 38 3%
Concessionaire 587 51%
LRT Rio Project
Urban mobility Metro Systems
Urban mobility Metro Line 3 - Niterói
RJ
Rio de Janeiro Niterói
Urban mobility Metro Line 3 - Niterói
Project Phase: Declaration of Private Interest (MIP) - ongoing.
No. of Stations:
• 14.
Length:
• 23 km.
Estimated Initial Demand:
• 350,000 pax/day;
Urban mobility Metro Line 3 - Niterói
Total Investment: R$ 3 bn
Guaxindiba
Araribóia
Metro in Salvador and Lauro de Freitas
Salvador - BA
Metro in Salvador and Lauro de Freitas
Funding sources (R$ 3.5 bn) • Federal Budget PAC Large City Mobility:
R$ 1.0 bn;
• PAC Financing – Large City Mobility: R$ 600 million;
• Current balance of Agreement for Line 1: R$ 250 million;
• Investment by Private Partner: To be defined in the bidding process;
• Investment by Government: To be defined in the bidding process.
Metro in Salvador and Lauro de Freitas
Concession objective
Implementation and Operation of the Urban Intercity Public Transportation System (Salvador and Lauro de
Freitas Metro Systems)
Model Sponsored Public-Private Partnership (PPP)
(Investment by Government)
Concession term
30 years: 3 construction projects + 27 operations Estimated startup of partial operations (18 months)
Bid process Presentation of Economic Proposals in Writing,
followed by open-outcry bidding on BM&FBOVESPA
Selection criteria
Lowest amount of investment by Government
Investments Estimated at R$ 3.5 bn
Lauro de
Freitas
Pirajá
Lapa
Urban mobility Brasília Metro
Urban mobility Brasília Metro
Length:
• Asa Norte: 1 km;
• Ceilândia: 2 km;
• Samambaia: 3 km.
Asa Sul and Guará Stations:
• 104 Sul;
• 106 Sul;
• 110 Sul;
• Estrada Parque;
• Onoyama.
Scheduled investments - GDF
Renovation of trains:
• 80 old cars: modernized;
• 48 new cars: air conditioning.
New trains:
• 160 new trains with air conditioning.
Infrastructure:
• Electricity;
• Telecom systems;
• Integration terminals;
• Station surroundings;
• Various operational improvements.
Scheduled investments – Concessionaire
Urban mobility
Total Investment: R$ 2.3 bn
Central Ceilândia
Samambaia
Brasília Metro
Urban mobility São Paulo Metro – Line 6
São Paulo
Urban mobility São Paulo Metro – Line 6
Project Phase: Public Hearing
No. of Stations:
• 15.
Length:
• 15.3km.
Estimated Initial Demand
• 633,000 pax/day;
Urban mobility São Paulo Metro – Line 6
Total Investment: R$ 7.7 bn
Patio Morro Grande
Bela Vista
Urban mobility Curitiba Metro
Curitiba
Urban mobility Curitiba Metro
Project Phase: Public Hearing. Study being reformulated due to MP 575.
No. of Stations:
• 13.
Length:
• 14.2km.
Estimated Initial Demand:
• 475,000 pax/day;
Total Investment: R$ 2.2 bn
Rua das Flores Patio CIC Sul
Urban mobility Curitiba Metro
Urban mobility Porto Alegre Metro
São Paulo
Curitiba
Porto Alegre
Urban mobility Porto Alegre Metro
Project Phase: Request by the Government for Declaration of Interest.
No. of Stations:
• 13.
Length:
• 14.8km.
Estimated Initial Demand:
• 302,000 pax/day;
Urban mobility Porto Alegre Metro
Total Investment: R$ 2.5 bn
Intermodal Terminal
Rua da Praia
Intermodal Terminal
Fiergs
Urban mobility Belo Horizonte Metro
São Paulo
Curitiba
Belo Horizonte
Urban mobility Belo Horizonte Metro
Public Investment: R$ 1.7 bn
Urban mobility Belo Horizonte Metro
Private Investment: R$ 1.2 bn
Total Investment: R$ 2.9 bn
Government
Adm. Center
Barreiro
Novo Eldorado
Savassi
Urban mobility North Stretch of Belo Horizonte Beltway
São Paulo Belo Horizonte
Urban mobility Northern Stretch of Belo Horizonte Beltway
Procedure for declaring interest March 2012
• Objective: Structuring of the Project for the Northern Stretch of the Beltway for the Belo Horizonte Metropolitan Area, a 67-km stretch connecting the cities of Sabará, Santa Luzia, Vespasiano, São José da Lapa, Pedro Leopoldo, Ribeirão das Neves, Contagem and Betim;
• The proposed Beltway consists of a highway connecting the southern and northern stretches of Fernão Dias Highway (BR 381);
• Interested companies must conduct studies and prepare proposals for construction, paving, operation, maintenance, conservation and improvements during the 35-year concession period;
Urban mobility Northern Stretch of Belo Horizonte Beltway
Estimated date of conclusion of studies: March 15, 2013.
Urban mobility Connecting Florianópolis with continental Santa Catarina
São Paulo
Santa Catarina Florianópolis
Urban mobility PMI – Greater Florianópolis
Declaration of Interest Procedure (PMI) for receiving proposals for recertification and construction of structural works to improve the transportation system, urban mobility and access to the island region of Florianópolis from Highway BR-101.
Urban mobility PMI – Greater Florianópolis
Integrated solutions
Maritime passenger and vehicle transportation using boats and ferry-boats.
Air passenger transport via cable car.
Investment of R$ 650 million.
PAC for highway concessions Federal program
BR – 101 BA
BR – 262 ES/MG
BR – 153 TO/GO
BR – 050 GO/MG
BR – 163 MS
BR – 262 MS
BR – 267 MS
BR – 163 MT
BR – 060 DF/GO
BR – 153 GO/MG
BR – 262 MG
BR – 116 MG
BR – 040 GF/GO/MG
1
2
3
4
5
6
7
8
9
PAC projects for concessions New investments in highways
Port of Santarém Port of Itaqui
Port of Pecém
Port of Salvador
Port of Vitória
Port of Rio de Janeiro
Port of Itaguaí Port of
Santos Port of
Paranaguá
Port of Rio Grande
Port of
Suape
1
2
3
4
5
6 7 8
9
PAC in execution
Current network
R$ 3.87
R$ 1.90
R$ 3.99
R$ 2.58
R$ n/a
R$ 5.94
R$ 6.63
R$ 4.84
R$ 5.99
772.3 Km
376.9 Km
743.3 Km
425.8 Km
821.6 Km
1,423.3 Km
732.9Km
821.6 Km
443.6 Km R$ In billions
Concession for Highway BR 040/DF/GO/MG
3rd Stage – Phase 1
Concession for Highway BR 116/MG
Toll plazas: 8 (BR 116) and 11 (BR 040).
Max. toll: R$ 6.25406 (BR 116)
and R$ 3.74680 (BR 116).
Concession term: 25 years.
National Road Transport Agency (ANTT)
3rd stage of highway concessions Phase 1
Public Hearings (AP 125, 127, 128) were held in August and September 2012 and the period for submitting contributions and suggestions to the Drafts of the Bid Notice and Concession Contract, as well as the PER and Feasibility Studies of the ANTT, expired on Sept. 25, 2012.
1
The Official Bid Notices should be made available on Nov. 26, 2012 with the auctions on the BOVESPA slated for Jan. 26, 2013.
2
3rd Stage – Phase 1
National Road Transport Agency (ANTT)
3rd stage of highway concessions Phase 1
National Road Transport Agency (ANTT)
3rd stage of highway concessions
3rd Stage – Phase 1
BR 116/MG
• Stretch in state of Minas Gerais between Além Paraíba and Divisa Alegre;
• Connects the stretch of BR-116 RJ already granted (CRT) and BR-116 BA also already granted (ViaBahia);
• Length: 816.7 km.
BR-040 /DF/GO/MG
• Begins in Federal District at the intersection with Highway BR 251 and ends in Juiz de Fora(MG) at the start of the stretch granted to CONCER;
• Length: 936.8 km.
Phase 1
PAC for railroad concessions Federal program
Railroad program
Financing compatible with project sizes
• Interest Rate: TJLP + 1%;
• 5-year grace period;
• Amortization in up to 25 years;
• Higher leveraging: up to 80% of total.
Total investments: R$ 10 bn
• 2013 – 2017: R$ 56 bn;
• 2018 – 2039: R$ 35 bn.
Railroads Federal plan for logistics investments
Operators with own cargo
Independent rail operators
Rail transportation concessionaires
Federal Government
Investment
Permanent way concessionaire
Built, maintained and operated by private sector
State-owned company acquires full rail transportation capacity.
VALEC State-owned company conducts public bid for capacity.
Railroads Federal plan for logistics investments
Main stretches under analysis
Total of
10,000 km Launch of bid notice + drafting of proposals:
Mar/Apr 2013
Port of Itaguaí
1 3 2
Port of Santos
Port of Paranaguá
Port of Rio Grande
Port of Rio de Janeiro
11
5
6
Port of Vitória
Port of Ilhéus
Port of Salvador
Port
of Suape
Port of Pecém
Port of Itaqui
Port of Vila do Conde
Port of Santarém
Port of Marabá Açailandia
Uruaçu
Port of Porto Velho
Lucas R. Verde
Estrela D’Oeste
Maracajú
Belo
Horizonte
Corinto
Panaroma
Mafra
10
9
4
12
7
8
SP Rail Beltway Northern Segment
SP Rail Beltway Southern Segment
Access to Port of Santos
Lucas do Rio Verde Uruaçu
Uruaçu – Corinto – Campos
Rio de Janeiro – Campos – Vitória
Belo Horizonte – Salvador
Salvador – Recife
Estrela do Oeste – Panorama – Maracaju
Maracaju – Mafra
São Paulo – Mafra – Rio Grande
Açailândia – Vila do Conde
1
2
3
4
5
6
7
8
9
10
11
12
Railroads Federal plan for logistics investments
CCR Airports Acquisitions
“Invest, diversify and grow: CCR 2020”
Leonardo Vianna
Costa Rica
Quito
Curaçao
International Airport of Costa Rica
• International airport of San José (Juan Santamaria International Airport)
is located in the province of Alajuela, some 20 km from the center of
San José;
• Term of Interested Management Contract: ends in May 2026;
• Around 70% of traffic is international.
International Airport of Curacao
• The international airport of Curacao is located on the northern coast
of the island, some 15 km from center of the capital, Willemstad;
• Concession Term: 30 years, ending in August 2033;
• Around 70% of traffic is international.
International Airport of Quito
• Mariscal Sucre International Airport is located in Quito and will
continue operating until the inauguration of the city’s new
international airport;
• Concession Term: 30 years, ending in January 2041;
• Around 77% of traffic is international.
Source: company data
Location of airports
Source: Company reports, 2011
Ownership structure:
• 15 airlines;
• 302 employees (62 Quiport + 240 ADC&HAS);
• 23 destinations;
• 68,000 arrivals and departures.
Overview: Acquisition: May 2012.
• CCR – 45.5%;
• AECON – 45.5%;
• ADC – 9%.
Mariscal Sucre, UIO International Airport in Quito, Ecuador
Revenue 2011: US$ 84 mn
Revenue 2016: US$ 162 mn
5.4 million passengers.
NQIA
MSIA
Flight range
Mariscal Sucre, UIO International Airport in Quito, Ecuador
Current
New
Source: Company reports, 2011
Ownership structure:
• 15 airlines;
• 132 employees;
• 32 destinations;
• 32,000 arrivals and departures (ATM’s).
Overview Acquisition: September 2012.
• CCR – 48.75%;
• ADC & HAS – 48.75%;
• Local Partners – 2.5%.
Juan Santamaria, CRT International Airport in San Jose, Costa Rica
Revenue 2011: US$ 67 mn
Revenue 2016: US$ 100 mn
3.5 million passengers
Source: Company reports, 2011
Ownership structure:
• 28 airlines;
• 198 employees;
• 30 destinations;
• 26,000 arrivals and departures.
Overview: Acquisition: October 2012.
• Aport S.A. – 51% (CCR 40.8% ; Zurich 10.2%);
• Jansen de Jong – 49%.
Hato International, CUR Airport in Curacao, Netherlands Antilles
Revenue 2011: US$ 32 mn
Revenue 2016: US$ 53 mn
1.6 million passengers
ARTESP, ViaQuatro and STP concessions
“Invest, diversify and grow: CCR 2020”
Italo Roppa
Current operations CCR AutoBAn
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Source: financial statements of the business unit
CCR AutoBAn: R$ 350 mn
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Current operations CCR ViaOeste
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Source: financial statements of the business unit
CCR ViaOeste: R$ 600 mn
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Current operations ViaQuatro
Revenue and EBITDA growth (R$ million)
ViaQuatro: R$ 200 mn
Potential of current portfolio Various investment gaps were identified...
EBITDA
200
Revenue
350
2012(E)
Current operations CCR SPVias
Potential of current portfolio
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Potential of current portfolio
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Source: financial statements of the business unit
Potential of current portfolio
Revenue and EBITDA growth (R$ million)
Revenue
Current operations Renovias
Potential of current portfolio
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Potential of current portfolio
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Potential of current portfolio
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Current operations CCR RodoAnel
Potential of current portfolio
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Potential of current portfolio
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Potential of current portfolio
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Current operations STP
Potential of current portfolio
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Potential of current portfolio
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
“Invest, diversify and grow: CCR 2020”
José Braz
Highlights of current operations Concessions: ANTT, Rio de Janeiro, Paraná and Controlar SP.
Current operations CCR RodoNorte
Current operations CCR RodoNorte
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
CCR RodoNorte: R$ 1 bn
• Campo Largo Bypass: R$ 100 mn;
• Expansion to four lanes and access road at
376 and 277 between Curitiba and Apucarana: R$ 900 million.
Crescimento de receita e EBITDA – em R$ milhão
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Current operations Controlar
Current operations Controlar
Projected revenue 2016: R$ 640 mn.
Unilateral reduction of inspection fee: 33%.
Material facts:
• Administrative negotiations;
• Lawsuits.
Potential of current portfolio Various investment gaps were identified...
Current operations SAMM
Projected revenue 2016E: R$ 154 mn.
Region’s potential:
• 34% of Brazil’s GDP;
• Strong revenue growth in 4 years;
• 4G – HDTV;
• Broadband;
• Events (2014 World Cup, 2016 Olympics).
Potential of current portfolio Various investment gaps were identified...
Current operations CCR NovaDutra
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
CCR NovaDutra: R$ 2 bn
• Serra das Araras;
• Expressways in Rio, São Paulo and São José dos Campos;
• Other safety works.
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Current operations CCR Ponte
Current operations CCR Ponte
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
CCR Ponte: R$ 305 mn
• Connecting the bridge to Linha Vermelha;
• Niterói Tunnel (Mergulhão).
Crescimento de receita e EBITDA – em R$ milhão
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Current operations ViaLagos
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
CCR ViaLagos: R$120 mn
• Reduction in tolls;
• Contractual rebalancing: 15 years.
Crescimento de receita e EBITDA – em R$ milhão
Potential of current portfolio Various investment gaps were identified...
Revenue and EBITDA growth (R$ million)
Revenue
Source: financial statements of the business unit
Current operations TransOlímpica
Concession term: 35 years.
Total investment: R$ 1.8 bn.
Revenue 1st year of operations:
R$ 148 mn.
Potential of current portfolio Various investment gaps were identified...
Current operations Barcas
Acquisition: R$ 72 mn | 80% of capital.
Rebalanced tariff: R$ 4.50.
Subsidy: 31%.
Committed investments: State government:
• 9 vessels: R$ 300 mn;
• 2 new stations: R$ 300 mn.
Concessionaire:
• 2 vessels.
• 8 vessels younger than 60 years;
• 6 vessels younger than 22 years;
• 4 vessels younger than 6 years.
Potential of current portfolio Various investment gaps were identified...
Rebalancing of the contract by lengthening the term.
Investment opportunities:
• Immediate recovery of existing stations: R$ 30 mn;
• 2 new stations: 300 mn.
Potential of current portfolio Various investment gaps were identified...
Araribóia – Niterói
Praça Araibóia Station Niterói
Potential investment Barcas: R$ 600 mn
Synergy with other projects
CCR Ponte CCR NovaDutra
LRT TransOlímpica Metro Line 3
Sustainability Responsible social investment
“Invest, diversify and grow: CCR 2020”
Francisco Bulhões
Reasons for the Sustainability Project
Protect Value | Reputation
Economic Capital
Human Capital
Social Capital
Natural Capital
Value Creation
2012
Data from the last Image and Satisfaction survey conducted by Datafolha in 2012.
General assessment of the concessionaire’s work (in %) (Excellent + Good) Respondents: car and truck drivers.
Protect Value
General assessment of work
Structuring reporting initiatives at the CCR Group.
• Support GRI 2011 reporting and structuring GRI 2012 reporting;
• Monitoring of final analysis of evidence by FGV;
• Process management and analysis of evidence for ISE index;
• Support for other reporting initiatives (Global Compact, ICO2, Guia
Exame);
• Discussion of proposal for GRI 2012.
Objective:
Activities:
Current status:
Value Creation| Economic Capital
Reporting initiatives - investors
Value Creation| Human Capital Educational campaigns
Value Creation | Social Capital The UN has declared 2011-2020 the
Decade of Action for Road Safety
Great opportunity
to transform our
main initiatives into
a model to be
replicated
Partnership with IADB:
• Road Digitalization for Citizenship;
• Pilot Project CCR ViaOeste (Highway+).
Value Creation | Social Capital The UN has declared 2011-2020 the
Decade of Action for Road Safety
Direct investment
Investment through incentives
970
1695
3771
3654
7519
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
5166
4676
9491
5144
12899
4969
14352
6590
Social investment by CCR of R$ 80 mn over 9 years,
with another R$ 165 mn expected over the next 5 years.
Over
R$165 million
Value Creation | Social Capital CCR private social investment
Consolidated with and without tax incentives
Value Creation | Social Capital
Road to Citizenship
11 million indirect participants
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
10,000 15,000 45,000 45,000 112,00 132,00 135,00 140,00 140,00 145,00 350,000 450,000
400 500 2,200 2,600 3,800 4,000 4,500 6,000 6,000 6,500 13,300 14,000
600,000
1.5 million students since start of program
Students Teachers Drivers
More than 1,600 people served each
month by our structure.
260m² of rest area for truckers.
600 people served/month.
190m² of rest area for truckers.
400 people served/month.
Value Creation | Social Capital
Road to health
• Maturity;
• Mapping of public
interest;
• Vision.
2011 2010 2012
• External factors;
• Accident front;
• Waste front;
• Emissions front;
• ISE;
• Sustainability committee.
• Executive support;
• Unit support;
• ISE;
• GRI and other reporting
initiatives;
• Selection of SW.
1. Sustainability in the
Value Chain
2. ROADMAP 3. CCR’s Sustainability
Project
Sustainability project Timeline
Reasons for the Sustainability Project
Protect Value | Reputation
Economic Capital
Human Capital
Social Capital
Natural Capital
Value Creation
• 55% of Brazil’s GDP;
• 402 km;
• 130 million users annually;
• 115 large manufacturers and retailers;
• 36 surrounding cities;
• 23 million people;
• 160 service stations.
Presidente Dutra Highway
Sustainable Highway Project
Creating a reference for sustainable development for Brazilian highways through
the joint efforts of multiple stakeholders;
Developing green solutions and technology by creating business models that are self-
sustainable over the long term;
Creating visibility for companies’ positioning through a unique communications
strategy.
The transformations required by sustainable development
depend on the actions of various players.
Project Motivation Sustainable Highway
Creating Value!
Overview of high-quality growth for the CCR Group
The company’s performance, strategy and future
“Invest, diversify and grow: CCR 2020”
Arthur Piotto
IPO
Portfolio
2.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (E)
R$ billion
EBITDA Growth
IPO
Portfolio
2.2
2.0
EBITDA Growth
STP
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (E)
R$ billion
2.2
2.0
2.7
STP
EBITDA Growth
IPO
Portfolio
STP
ViaOeste
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (E)
R$ billion
2.2
2.0
2.7
3.0 ViaOeste
STP
EBITDA Growth
IPO
Portfolio
STP
ViaQuatro
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (E)
R$ billion
2.2
2.0
2.7
3.0
2.9 ViaOeste
ViaQuatro
STP
EBITDA Growth
IPO
Portfolio
STP
RodoAnel,
Renovias
and Controlar
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (E)
R$ billion
2.2
2.0
2.7
3.0
2.9
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (E)
ViaOeste
ViaQuatro
3.3 SPVias
and SAMM RodoAnel,
Renovias
e Controlar
EBITDA Growth
IPO
Portfolio
STP
R$ billion
2.2
2.0
2.7
3.0 2.9
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (E)
3.3
+ 62% of EBITDA added
through new
businesses
Adding value through new operations
R$ billion
R$1.3 bn of EBITDA added
through 2012E
Perception of market capitalization
+23%
2003
571
2006 (Consensus in 2003)
900
1,206
2006
306
R$ million
+23%
2003
571
2006 (Consensus em
2003)
900
1.206
2006
306
+12%
2006
1,206
2009 (Consensus in 2006)
1,712
206
2009
1,918
Perception of market capitalization
R$ million
+12%
2006
1,206
2009 (Consensus in 2006)
1,712
206
2009
1918
Perception of market capitalization
2009
1,918
2012 (E) (Consensus
in 2009)
2,737
623
2012 (E) (Consensus
of current market)
3,360
+23% R$ million
EBITDA Growth
But in what scenario was this achieved?
“Invest, diversify and grow: CCR 2020”
Arthur Piotto
No project 2002
No project 2003
MG-50 2004
No project 2005
São Paulo Metro Yellow Line 2006
7 federal highways 2007
6 state highways 2008
BR116/BR324 in Bahia 2009
BA093 and southern and eastern stretches of Sao Paulo Beltway
2010
MT130 and PE060* 1 Airport 2011
R$ 0
Amounts in million
R$ 0
R$ 645
R$ 0
R$ 1,000
R$ 19,500
R$ 10,795
R$ 1,900
R$ 5,805
R$ 900
Project Track Record
Project Track Record
Total:
20 Projects
Total investments:
~R$ 40 bn
Average:
R$ 4 bn per year
• Won 2 Projects;
• Acquired 5 companies;
• Created 1 company;
And what did CCR do?
R$ 4.8 bn re-invested
EBITDA Added R$ 1.3 bn
• BR 101 /ES;
• 3 Airports;
• Transolímpica/RJ.
2012 R$ 21 bn
• We won TransOlímpica;
• We acquired 4 companies.
R$ 800 mn re-invested
EBITDA added
R$ 150 mn
And what is the outlook?
“Invest, diversify and grow: CCR 2020”
Arthur Piotto
Considering the outlook...
Railroads R$ 91,000
Federal Highways R$ 42,000
5 Airports in Brazil R$ 25,000 E
Urban Mobility R$ 27,000
Additional Investments R$ 5,000 E
Projects outside Brazil R$ ?
Total: 33 projects over the next 5 years
Total estimated investments: ~R$ 190 bn
Average: R$ 40 bn per year
10x more than
in the past
And how much will CCR be able to add based on its
execution track record?
in ‘000
Arthur Piotto
And how will we support our growth?
Investment capacity Financial strategy
Maximum
Net Debt/EBITDA Ratio
of 3.0x.
Company’s growth to be
financed through leverage.
Commitment to pay out
at least 50% of net income
as dividends.
2012 (E) 2013 (E) 2014 (E) 2015 (E) 2016 (E) 2017 (E) 2018 (E)
onwards
1,673
2,394
1,195 1,094 1,063
56 130
Schedule of debt amortization
Re-financings contracted or authorized...
... will increase CCR’s investment capacity.
418
1,017
1,315
1,589 1,436
856 972
R$ million
Investment capacity
In times
Net Debt ND/EBITDA
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (E)
1.2 1.1 0.6
1.2 1.2 1.1
2.6 2.9
5.6 6.2
7.5
2.6
2.0
0.8 1.1 0.9 0.8
1.5
2.5
1.5
2.1 2.2
R$ billion
Investment capacity Financial strategy
Maximum
Net Debt/EBITDA Ratio
of 3.0x.
Company’s growth to be
financed through leverage.
Commitment to pay out
at least 50% of net income
as dividends.
R$ million
Investment capacity
2002
179
2003
586
2004
1,656
2005
2,147
2006
2,479
2007
3,113
2008
2,565
2009
2,849
1,143
2010
2,648
2011
2,565
2012 (E)
Investment capacity
Current investment capacity ~R$ 3 bn,
increasing to ~R$ 13 bn by 2016.
Investment capacity
CCR’s investment capacity considering a maximum
Net Debt/EBITDA ratio of 3.0x.
R$ million
2002
179
2003
586
2004
1,656
2005
2,147
2006
2,479
2007
3,113
2008
2,565
2009
2,849
1,143
2010
2,648
2011
2,565
2012 (E)
Investment capacity
Current investment capacity ~R$ 3 bn,
increasing to ~R$ 13 bn by 2016. In times
Net Debt ND/EBITDA
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (E)
1.2 1.1 0.6
1.2 1.2 1.1
2.6 2.9
5.6 6.2
7.5
2.6
2.0
0.8 1.1 0.9 0.8
1.5
2.5
1.5
2.1 2.2
Investment capacity Financial strategy
Maximum
Net Debt/EBITDA Ratio
of 3.0x.
Company’s growth to be
financed through leverage.
Commitment to pay out
at least 50% of net income
as dividends.
183
263
500 547
580
714 709 672
899
2003 2004 2005 2006 2007 2008 2009 2010 2011
30
152
307 355
532
605 603
852 807
1,128
1,054
Dividends
Since its IPO, CCR has distributed on average 77% of net income as dividends
CAGR
48.7% 127%
Net Income Net Income (Market Consensus) Dividends Payout
58%
61% 65% 92%
85% 85%
16%
90%
93%
2012 (E)
R$ million
Wrap Up
R$ 40 bn per year in projects.
How much will be added??
Stock price in this scenario?
R$ 4 bn per year in projects.
67% of EBITDA added after
IPO.
R$ 17.70 per share.
Yesterday Tomorrow
Conclusions
“Invest, diversify and grow: CCR 2020”
Renato Vale
Clearly defined and public strategy, with profitability first, followed by expansion;
Competent and highly qualified professionals with a continuous process to prepare leaders,
supporting the perpetuity of the business;
Base scenario indicates the potential for significant upside, with limited downside;
Cash generation of the current portfolio supports a strong dividend policy and high
quality growth;
Actions focused on the sustainable development of new markets and opportunities;
Highly competitive access to capital markets;
Solid financial situation that supports future growth.
Why CCRO3?
With capital
discipline...
...That’s how
we’ll get there!
Why CCRO3?
in projects per year
With R$ 40 bn invested
Discussion, questions and answers
“Invest, diversify and grow: CCR 2020”
Renato Vale and Officers