Apres Call 2 Q09 V Final
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- During the second quarter, 5 new toll plazas began operating in OHL Brasil's federal concessions, bringing the total to 27 out of 29. - Due to the new toll plazas, toll-paying traffic grew 206.5% in the federal concessions compared to the second quarter of 2008. - Net revenues increased 67.6% to R$287.3 million compared to the second quarter of 2008, while adjusted EBITDA grew 32.8% over the same period.
Apres Call 2 Q09 V Final
- 1. Conference Call 2Q09 Earnings Results August 12th, 2009 1
- 2. Notice 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 , y p j , , y 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 forward-looking depend, substantially, conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry and are, therefore, subject to change without prior notice. 2
- 3. Highlights for the quarter During the second quarter, 5 new toll plazas entered in operation in our federal concessions. Closing 2Q09 we had 27 toll plazas in operation from a total of 29; Due to the beginning of toll plazas operation in our federal concessions, the total toll- paying traffic grew 206.5% in 2Q09 v.s. 2Q08; In the same period the tolled traffic of o r state concessions decrease 2 7% o er period, our 2.7% over 2Q08, related to the overall slowdown of the Brazilian economy, in the beginning of the year. YTD the decrease is 3.0%; 67.6% increase in Net Revenues, totaling R$287.3 million and 32.8% increase in Adjusted EBITDA, totaling R$144.8 million, over 2Q08; R$26,8 million increase in Net Income over 2Q08, reaching R$45.8 million; The first disbursements of the BNDES Bridge Loan took place at the end of June, totaling R$ 476 7 million. li 476.7 illi 3
- 4. Traffic Performance and Average Toll Tariff – State Concessions Traffic Performance (in ‘000 equiv.-vehicle) Average Toll Tariff (R$) -2.7% 2 7% -10.3% +12.2% 35 442 35,442 -0.2% 0 2% 34,501 31,291 7,383 7,031 6,356 13,042 13 042 12,691 11,390 5.419 5,108 5,482 5.89 5.88 5.24 5 24 9,598 8,438 9,298 2Q08 1Q09 2Q09 2Q08 1Q09 2Q09 Autovias Centrovias Intervias Vianorte Tariff Adjustment of 11.53% in July 01, 2008 based on the accumulated variation of the IGP-M from June/2007 to May/2008, 4
- 5. Toll Plazas – Federal Concessions Operating T ll Pl O ti Toll Plazas: 5 new t ll plazas started operating i 2Q09 toll l t t d ti in 2Q09. Opening - Opening - Opening - Opening - Opening - Opening - Toll Plazas - Concessionaire Total Toll Plazas 2008 Jan/2009 Feb/2009 Mar/2009 May/2009 June/2009 Operating Planalto Sul 1 1 3 5 5 Fluminense 3 1 4 5 Fernão Dias 2 1 1 3 7 8 Régis Bittencourt 2 1 2 1 6 6 Litoral Sul 2 1 2 5 5 Total 5 2 10 5 3 2 27 29 Opening Estimation: Concessionaire Aug/09 Nov/09 Total Planalto Sul Fluminense 1 1 Fernão Dias 1 1 Régis Bittencourt Litoral Sul Total 1 1 2 5
- 6. Traffic and Tariff – Federal Concessions Toll-Paying Traffic – Federal Concessions 2Q09: Var% Equivalent-Vehicles 2Q09 1Q09 2Q09/1Q09 Planalto Sul 5,959,260 , , 3,814,815 , , 56.2% Fluminense 5,774,000 2,792,000 106.8% Fernão Dias 23,039,091 11,297,273 103.9% Régis Bittencourt 25,308,667 12,078,667 109.5% Litoral Sul 14,053,636 3,955,455 255.3% Total - Federal Concessions: 74,134,654 33,938,210 118.4% The toll tariffs offered in the federal auctions in October/07 were adjusted by the variation of the IPCA from June 2007 to the month prior to the initiation of the toll charge at the first toll plaza in each concessionaire: Average Toll Tariff Var% 2Q09 1Q09 (in R$/Equiv-Vehicles) 2Q09/1Q09 Planalto Sul 2.70 2.70 0.0% Fluminense 2.50 2.50 0.0% Fernão Di F ã Dias 1.10 1 10 1.10 1 10 0.0% 0 0% Régis Bittencourt 1.50 1.50 0.0% Litoral Sul 1.10 1.10 0.0% Average - Federal Concessions: 1.47 1 47 1.54 1 54 -4.5% 4 5% 6
- 7. Potential Net Revenue – Federal Concessions Potential Net Revenues 2Q09 2Q09 (R$ thousand) Real 29 toll plazas* Var% Consolidated 100,169 121,099 82.7% * Company estimatives, considering the operation in the whole quarter. The federal concessions started 2Q09 with 22 toll plazas operating, and closed the quarter operating 27 toll plazas; Net revenue on federal concessions totaled R$100.2 million in 2Q09; If the 29 toll plazas were operating since the beginning of the quarter, the net revenue would be round R$121.1 million; According to our estimates, net revenue recorded in 2Q09 represented 82.7% of the potential net revenue for the quarter. 7
- 8. Net Revenue – Evolution per Concessionaire Net Services Revenue Var% Var% Var% 2Q09 1Q09 2Q08 1H09 1H08 (R$ thousand) 2Q09/1Q09 2Q09/2Q08 1H09/1H08 Autovias 47,096 42,892 43,708 9.8% 7.8% 89,988 83,477 7.8% Centrovias 44,734 41,771 39,145 7.1% 14.3% 86,505 75,471 14.6% Intervias I t i 53,369 53 369 47,824 47 824 49,125 49 125 11.6% 11 6% 8.6% 8 6% 101,193 101 193 93,489 93 489 8.2% 8 2% Vianorte 41,941 37,627 39,463 11.5% 6.3% 79,568 75,016 6.1% Total - State Concessions: 187,140 170,114 171,441 10.0% 9.2% 357,254 327,453 9.1% Planalto Sul 14,739 9,435 - 56.2% n.a. 24,174 - n.a. Fluminense 13,179 6,386 - 106.4% n.a. 19,565 - n.a. Fernão Dias 23,244 11,426 - 103.4% n.a. 34,670 - n.a. Régis Bittencourt 34,678 16,554 - 109.5% n.a. 51,232 - n.a. Litoral Sul Lit l S l 14,329 14 329 4,004 4 004 - 257.9% 257 9% n.a. 18,333 18 333 - n.a. Total - Federal Concessions: 100,169 47,805 - 109.5% n.a. 147,974 - n.a. Total: 287,309 217,919 171,441 31.8% 67.6% 505,228 327,453 54.3% Electronic Toll Collection: Revenues through electronic collections (AVI System) in the state concession toll plazas in 2Q09 represented 53 0% compared to 50 7% in 1Q09 and 49 8% in 2Q08; 53.0% 50.7% 49.8% For the federal concessions the average percentage of electronic collections is currently at 27 5% against 25 0% in the 1Q09 27.5%, 25.0% 1Q09. 8
- 9. Adjusted EBITDA and Margin Adjusted EBITDA (in R$ million) 71.3% 66.1% 65.2% 62.7% 62 7% 63.6% 63.9% 63 9% 61.1% 61 1% 59.8% 63.3% 50.4% 37.4% 109.0 144.8 145.3 87.9 87 9 112.0 112 0 93.3 93 3 82.4 104.5 126.5 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Adjusted EBITDA Adjusted EBITDA Margin (%) Adjusted EBITDA Margin (%) – Ex- Federals EBITDA & Adjusted EBITDA Var% Var% Var% 2Q09 1Q09 2Q08 1H09 1H08 (R$ thousand) $ 2Q09/1Q09 2Q09/2Q08 1H09/1H08 NET SERVICE REVENUE 287,309 217,919 171,441 31.8% 67.6% 505,228 327,453 54.3% Cost and Service Expenses (129,427) (123,303) (50,677) 5.0% 155.4% (252,730) (101,583) 148.8% EBITDA 157,882 94,616 120,764 66.9% 30.7% 252,498 225,870 11.8% EBITDA Margin (%) 55.0% 43.4% 70.4% 50.0% 69.0% (-) Fixed Concession Charge Paid (13,119) (13,118) (11,763) 0.0% 11.5% (26,237) (23,523) 11.5% Adjusted EBITDA 144,763 81,498 109,001 77.6% 32.8% 226,261 202,347 11.8% Adjusted EBITDA Margin (%) 50.4% 50 4% 37.4% 37 4% 63.6% 63 6% 44.8% 44 8% 61.8% 61 8% 9
- 10. EBITDA – Federal Concessions Only Var% EBITDA - Federal Concessions (R$ thousand) 2Q09 1Q09 2Q09/1Q09 NET SERVICE REVENUE 100,169 47,805 109.5% Costs and Service Expenses (75,017) (73,963) 1.4% Costs f S i C t of Services (E A (Ex. Amort. and D t d Depre.) ) (55,305) (55 305) (55,028) (55 028) 0.5% 0 5% Grant Authority Expenses (8,558) (9,364) -8.6% General & Administrative Expenses (Ex. Amort.) (10,292) (9,327) 10.3% Directors' Compensation (680) (102) n.r. Tax Expenses (219) (142) 54.2% Other Revenues/ Expenses 37 - n.d. EBITDA 25,152 (26,158) n.r. EBITDA Margin (%) 25.1% -54.7% The following two factors were relevant to the increase of EBITDA in our Federal Concessions during this quarter: Increase in Net Revenues in the period due to the operation of 22 out of the 29 toll plazas in 2Q09, in addition to the beginning of collection of 5 additional toll plazas. Maintenance of Operating Costs and Expenses vs. 1Q09 (+1.4%). Despite the vs (+1 4%) “maintenance” of federal concessionaires’ operating costs and expenses in the quarter, these should increase and be in line with the costs and expenses expected in the proposals delivered to ANTT (Brazilian Land Transportation Agency) in 2007, as more toll l t ll plazas start charging users and th collection systems b t t h i d the ll ti t become f ll operational. full ti l 10
- 11. Financial Result Var% Var% Var% Financial Result (R$ th Fi i lR lt thousand) d) 2Q09 1Q09 2Q08 1H09 1H08 2Q09/1Q09 2Q09/2Q08 1H09/1H08 Financial Revenues 10,784 13,979 3,668 -22.9% 194.0% 24,763 5,858 322.7% Financial Expenses (40,848) (41,905) (41,310) -2.5% -1.1% (82,753) (76,028) 8.8% BNDES (2,765) (3,064) (6,804) -9.8% -59.4% (5,829) (14,391) -59.5% Other Financial Expenses (34,455) (37,441) (12,512) -8.0% 175.4% (71,896) (25,729) 179.4% Monetary Correction of Fixed C. Charge (3,628) (1,400) (21,994) 159.1% -83.5% (5,028) (35,908) -86.0% Net Exchange Variation 112 29 66 286.2% 69.7% 141 45 213.3% Net Financial Result (29,952) (27,897) (37,576) 7.4% -20.3% (57,849) (70,125) -17.5% % Net Services Revenue -10.4% -12.8% -21.9% -11.5% -21.4% Financial Expenses Breakdown (% total of the financial expenses) IGP M- (Inflation) – Quarterly IGP-M 4.3% Other Financial Expenses 89.3% 84.3% 53.2% - 0.3% - 0.9% 2Q09 1Q09 2Q08 Monetary Correction of Fixed Concession Charge 30.3% CDI (Interest Rate) – Quart. Average ( ) g 8.9% 8 9% 7.3% BNDES 12.5% 6.8% 16.5% 11.4% 3.3% 10.3% 2Q09 1Q09 2Q08 2Q09 1Q09 2Q08 11
- 12. Net Income Results Evolution (in R$ thousand) 126,648 126 648 (10,780) (10 780) (57,194) (9,072) (12,484) (12 484) (7,316) 7,116 (17,858) 18,366 (10,658) 45,757 18,989 Net Income Gross Deductions Costs Grant Authority G&A Deprec. and Financial Financial Monetary IR&SC Net Income 2Q08 Revenues Expenses Expenses Amort. Revenues Expenses Correction Taxes 2Q09 of Fixed Concession Charge +141.0% 12
- 13. Debt Structure Gross Indebtedness (in R$ million) Leverage Ratio and Net Debt (in R$ million) Dívida Bruta (R$ Milhões) 1,936 Grau de Alavancagem e Dívida Líquida (R$ Milhões) 2.6x 2.5x 1,425 1 425 739 1.9x 267 1.5x 1.4x 1,037 1.3x 1,012 1.1x 1.0x 1.1x 1,291 691 690 1,174 537 517 518 915 933 935 1,158 1 158 1,197 375 355 246 652 407 399 467 456 437 471 335 416 291 316 110 119 79 102 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Net Debt Net Debt/Adjusted EBITDA (last 12 Months) Long Term Short Term Debt Cost Breakdown Debt Amortization Schedule (in R$ million) 91.4% 1,197.2 61.9% 69.0% CDI Cronograma Financeiro de Amortização (R$ Milhões) 37.5% 30.7% 30 7% 503.7 503 7 TJLP 8.2% 202.0 0.6% 0.3% Other 21.2 11.6 0.1 0.4% Jul/09 to Jul/10 to 2011 2012 2013 2014 2Q08 1Q09 2Q09 Jun/10 Dec/10 13
- 14. Indebtedness – Federal Concessions Approved credit line of R$1.0 billion structured with BNDES as a Bridge Loan for Federal Concessions; At the end of June occurred the first disbursements from BNDES Bridge Loan totaling the amount of R$ 476.7 million; Subsequent Events to the Quarter: Payment of Promissory Notes: y y In July 2009, promissory notes issued in 1Q09 in the amount of R$400 million were paid by the federal concessionaires; Refinancing: Taking into consideration the BNDES disbursement term, the Company issued new promissory notes on July 22, 2009 for Autopista Planalto Sul and Autopista Fluminense, in the total amount of R$120.0 million, with 60 days maturity and remuneration of CDI + y y 2.5% p.y.. 14
- 15. CapEx CapEx Breakdown 2Q09 – R$259 2 million* C E B kd R$259.2 illi * 3.77% 2.64% 3.59% 23.42% 3.61% 5.73% 12.59% 27.34% 17.31% Estimated investments for the next 5 years (2009 to 2013), as scheduled under the concession agreements: State Concessions: R$470 million; St t C i illi Federal Concessions: R$4.3 billion. * Not considering investments in other subsidiaries, holding and adjustments of consolidation. 15
- 16. New Opportunities Federal Highways: 3rd St d Stage / 1st Ph t Phase: BR 040 BR 381 and BR 116 (Mi BR-040, BR-381 d BR-116 (Minas G i St t ) 2 000 k Gerais State). 2,000 km with 3 lots. Auction estimated to occur in 2H09; 3rd Stage / 2nd Phase: BR-101/ES, BR-101/BA and BR-470/SC. 1,600 km with 3 lots. No estimate date for the auction. State Highways: Minas Gerais. 16 lots with 7,000 km. Concessions or PPP’s. Estimated to occur in 2009/2010; São Paulo: 2 lots with approximated 386 km of roads on São Paulo State coast. No estimate date for the auction auction. Airports: Galeão (Rio de Janeiro) and Viracopos (Campinas-SP). Are expected the concession of these two airports to privately-owned enterprise. 16