CCR Day 5 Presentation
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The presentation outlines CCR's evolution from its founding through the present, and discusses its future potential. It describes how CCR overcame past challenges to consolidate its structure and governance, generating strong returns. It highlights CCR's favorable position given competitive and macroeconomic environments. Going forward, CCR aims to strengthen strategic planning, develop its people, increase contract lengths, maximize new investment profits, and maintain dividend distributions, to achieve a higher level.
CCR Day 5 Presentation
- 1. November 27, 2009 Well Planned Past. Proven Track Record. Ready for the Future. Achieving a Higher Level
- 2. Disclaimer This presentation contains certain statements that are neither reported financial results or other historical information. They are forward-looking statements. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond CCR’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators, the Company's ability to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, inflation and consumer confidence, on a global, regional or national basis. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. CCR does not undertake any obligation to publicly release any revisions to these forward looking statements to reflect events or circumstances after the date of this presentation.
- 3. AGENDA TOPIC SPEAKER TOPIC TIME Registration and Breakfast - - 8:30 am – 9:00 am Welcome Renato Vale Welcome 9:00 am – 9:10 am Retrospective and Strategic Vision Márcio Batista Strategic Position 9:10 am – 9:30 am Brazil’s Macro Scenario Eduardo Loyo Future Macro Scenario 9:30 am – 10:15 am Q&A - - 10:15 am – 10:30 am Growth Strategy – Current Portfolio Italo Roppa Current Portfolio 10:30 am – 11:10 am COFFEE BREAK - - 11:10 am – 11:30 am Growth Strategy – New Businessess Leonardo Vianna New Businesses 11:30 am – 12:00 am Financial Strategy Arthur Piotto Financial 12:00 pm – 12:30 pm Q&A - - 12:30 pm – 12:50 pm CLOSING LUNCH - - 1:00 pm – 3:00 pm
- 4. Retrospective and Strategic Vision Márcio Batista
- 5. CCR’s Evolution We Overcame Challenges, Consolidated our Structure and Our Past Strengthened our Corporate Governance Average ROE 4 Years: 33.2% • Company’s Incorporation • Strategic Partner • Corporate Restructuring 2005 • Tapping of Capital Markets 2004 2003 2002 Follow-on 2001 R$ 334 mn 2000 1999 1998 Corporate Restructuring Operational Startup EBITDA: R$ 1.1 bn EBITDA Margin: 56.4% 1998-2005
- 6. CCR’s Evolution With Capital Discipline and a Focus on Profitability, We Have Our Present Prepared the Company for a New Level Average ROE 4 years: Past 38.9% Average ROE 4 years: 33.2% EBITDA: R$1.1 bn EBITDA Margin: 56.4% 2009 2008 2007 Follow-on 2006 R$ 1,235 mn EBITDA: ~R$ 2 bn Margin ~64% • Consolidation Efforts • Portfolio Diversification • Preparation for Future 1998-2005 2006-2009
- 7. CCR’s Evolution Unique Moment for CCR, with Favorable Competitive and Our Future Macroeconomic Environments Past Present EBITDA: R$ 3.5 – R$ 4.5 bn Average ROE 4 years: 33.2% Average ROE 4 years: 38.9% EBITDA: R$ 1.1 bn EBITDA: ~R$ 2 bn 2014 World Cup EBITDA Margin: 56.4% EBITDA Margin: ~ 64% 2016 Olympics Infrastructure Deficit Various Opportunities Secondary Market Metro Logistics Urban Mobility Potential Development of Current Portfolio • Reduce Escape Routes • Maximize Ancillary Revenue • Contractual Addendums • Growth in Collection Base • Expand Current portfolio capacity 1998-2005 2006-2009 Next 5 Years
- 8. ...Achieving a Higher Level Strategic Guidelines for 2010-2014 Strengthen strategic planning as a fundamental tool for growth while preserving the values and beliefs of the CCR Group Train and develop people, seeking to continue the Group’s growth process by supporting employees: • Develop organizational skills • Develop individual skills • Delegate responsibilities Increase the remaining average term of the CCR Group’s contracts with the objective of perpetuating the business on a sustainable basis Implement strategy focused on maximizing profitability for new investments Maintain the commitment to dividend distribution
- 9. Well Planned Past. Proven Track Record. Ready for the Future. Achieving a Higher Level
- 10. Presentation Eduardo Loyo – BTG Pactual
- 11. Well Planned Past. Proven Track Record. Ready for the Future. Achieving a Higher Level
- 12. Current Portfolio Development Potential Italo Roppa
- 13. Current Portfolio Current Portfolio Still Presents High Unexplored Potential: 1 Traffic Growth 2 Contractual Addendums 1.1. Low per-capita vehicle density 2.1. Additional Investments in current in Brazil portfolio 1.2. Traffic already reflecting 2.2. Improvements in access economic recovery 1.3. Record high traffic on our toll 2.3. Expansion in highway capacity roads in Oct/09
- 14. 2009 Traffic Highlights Consolidated* 2009 (YoY) 1. Consolidated Traffic: Historical Elasticity*: 1.4x GDP 3Q08 vs. 3Q09: peak of economic cycle versus end of crisis 3.6% 2.3% Economic recovery: Oct/09 registered 0.9% record high traffic 0.4% 0.6% Preliminary figures for Nov/09 point to JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV* -1.4% -0.5% -0.4% new records -3.1% -4.0% -4.1% 2. RodoAnel: recovery with stronger effects due to traffic profile of concessionaire Strong and consistent recovery in commercial 3. NovaDutra: frank recovery even without traffic bidirectional plazas *Excludes Renovias and RodoAnel. Real traffic through Nov/24/09.
- 15. 2009 Traffic - RodoAnel RodoAnel 2009 – Monthly VEQ (thousand) Global crisis impacted traffic levels projected in the proposal 9,600 Ramp-up effect still very 9,000 apparent 8,400 7,800 Positive expectations for impacts from inauguration of southern stretch 7,200 6,600 Projections by independent consultants suggest convergence to data in proposal
- 16. 2009 Traffic - NovaDutra NovaDutra 2009 (YoY) Recovery in traffic even without the 0.2% effects of the bidirectional addendum -0.2% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV* -1.6% -2.7% With the bidirectional addendum, the competitive toll scenario generates a -2.8% positive bias for NovaDutra -5.5% -4.2% -5.3% -6.1% -7.2% -7.1% Recovery in economic growth already reflected by the higher commercial vehicle flows *Real traffic through Nov/24/09.
- 17. Contractual Addendums - NovaDutra NovaDutra and AS/CP – WITHOUT BIDIRECTIONAL R$ 4.30 R$ 3.90 Dom Pedro I interchange Tamoios R$ 3.90 Airport R$ 4.30 SP 035 São Paulo R$ 4.40 R$ 3.40 AS/CP R$ 4.60 R$ 4.40 Vehicle Toll NovaDutra and AS/CP – WITH BIDIRECTIONAL R$ 2.10 R$ 2.10 Dom Pedro I R$ 3.90 interchange Tamoios SP 035 R$ 2.10 R$ 2.10 R$ 3.90 Airport São Paulo R$ 2.30 R$ 2.20 R$ 2.20 R$ 1.70 AS/CP R$ 2.30 R$ 2.20 R$ 2.20 R$ 1.70 Vehicle/Truck Toll
- 18. Bidirectional Tolls on NovaDutra and AS/CP Bidirectional toll collection makes Dutra more attractive than competitors – Light Vehicles Light Vehicle Toll + Estimated Tolls Additional Fuel Cost* Nova Cost Cost Additional AS/CP Origin Destination AS/CP Difference Difference Dutra distance vs. vs. NovaDutra NovaDutra Taubaté R$ 8.10 R$ 8.40 +3.7% +10 KM R$ 10.80 ovaDutra +33% SJC R$ 8.10 R$ 6.70 -17.3% +19 KM R$ 11.26 +39% São Paulo Guararema R$ 4.20 R$ 4.50 +7.1% +7 KM R$ 6.18 +47% Arujá R$ 2.10 R$ 2.30 +9.5% +14 KM R$ 5.66 +170% * Additional fuel costs are based on light vehicle fuel consumption of 10.0km/l and gasoline price per liter of R$ 2.40.
- 19. Bidirectional Tolls on NovaDutra and AS/CP Bidirectional toll collection makes Dutra more attractive than competitors – Commercial Vehicles Commercial Toll + Estimated Vehicle Tolls Additional Fuel Cost* Nova Cost Cost Dif. with Additional Origin Destination AS/CP Difference AS/CP Impact of Dutra Distance vs. Longer NovaDutra Distance Taubaté R$ 24.30 R$ 25.20 +3.7% +10 KM R$ 30.20 Distância +24% SJC R$ 24.30 R$ 20.10 -17.3% +19 KM R$ 29.60 +22% São Paulo Guararema R$ 12.60 R$ 13.50 +7.1% +7 KM R$ 17.00 +35% Arujá R$ 6.30 R$ 6.90 +9.5% +14 KM R$ 13.90 +121% * Additional fuel costs are based on fuel consumption of 3.5km/l for commercial vehicles with 3 axles and diesel liter price of R$ 1.75.
- 20. Contract Addendums - NovaDutra Works on Bidirectional Plazas Parateí Norte (bound for Rio de Janeiro)
- 21. Contract Addendums Various adjustments to contracts already approved... Approved Contract Addendums in Progress NovaDutra AutoBan AutoBAn ViaOeste R$ 200 mn R$ 94 mn R$ 110 mn R$ 250 mn Investments in Anhanguera Improved access Cebolão Project expressways in São Complex: to Marginal Tietê and Itapevi/Jandira José dos Campos, Complement to expressway Interchange Rio de Janeiro and 1st Phase São Paulo ...in line with contract rules.
- 22. Contract Addendums - NovaDutra Expressways in Rio de Janeiro: Baixada Fluminense - S. J. de Meriti Before After
- 23. Contract Addendums - NovaDutra Expressways in São Paulo: Greater São Paulo (Guarulhos) Before After
- 24. Contract Addendums - NovaDutra Expressways in São José dos Campos, São Paulo Before After
- 25. Contract Addendums - AutoBAn Anhanguera Complex – Interchange with Marginal Tietê expressway
- 26. Contract Addendums - AutoBAn Anhanguera Complex – Interchange with Marginal Tietê expressway
- 27. Contract Addendums - AutoBAn Anhanguera Complex –Interchange with Marginal Tietê expressway
- 28. Contract Addendums Various adjustments to contracts already approved... Approved Contract Addendums in Progress NovaDutra AutoBan AutoBAn ViaOeste R$ 200 mn R$ 94 mn R$ 110 mn R$ 250 mn Investments in Anhanguera Improved access Cebolão Project expressways in São Complex: to Marginal Tietê and Itapevi/Jandira José dos Campos, Complement to expressway Interchange Rio de Janeiro and 1st Phase São Paulo ...in line with contract rules.
- 29. Contract Addendums - ViaOeste Cebolão Project Before In Progress
- 30. Contract Addendums - ViaOeste Jandira/Itapevi Interchange Before In Progress
- 31. Contract Addendums - ViaOeste Expansion of Toll Plazas
- 32. Contract Addendums And many contract addendums are still in the negotiation phase: Addendums under Negotiation Ponte NovaDutra NovaDutra R$205 mn R$600 mn R$700 mn Connection with Linha Implementation of new lane Additional investments in Vermelha (Rio de Janeiro), in Serra das Araras, improvements, such as road Access in Niterói Complementary roads and improvements, additional environmental aspects safety works, additional lanes, lighting
- 33. Bridge Bridge-Linha Vermelha Connection Linha Vermelha Rio-Niterói Bridge
- 34. Contract Addendums - NovaDutra NovaDutra – Serra Das Araras Current Ascending Road Descending Road (to be expanded) (to be closed)
- 35. Contract Addendums And many contract addendums are still in the negotiation phase: Addendums under Negotiation Ponte NovaDutra NovaDutra R$205 mn R$600 mn R$700 mn Connection with Linha Implementation of new lane Additional investments in Vermelha (Rio de Janeiro), in Serra das Araras, improvements, such as road Access in Niterói Complementary roads and improvements, additional environmental aspects safety works, additional lanes, lighting
- 36. Current Portfolio Diversification Diversification STP ViaQuatro Controlar Leader in electronic Line 4 of the Environmental Vehicle collection technology for São Paulo Subway Inspection toll plazas and parking lots in São Paulo city
- 37. STP – Serviços e Tecnologia de Pagamentos (Electronic Toll System) Highlights Present in 6 States Leader in electronic payment technology for toll plazas and parking lots Present in 6 states: SP, RJ, MG, PR, SC and RS Coverage of more than 86% of the tolled network (11,000 km of highways) Present in 47 parking lots (shopping malls, airports, etc) Accounts for 70% of traffic at some toll plazas Accounts for 38% of toll traffic More than 27 million electronic transactions/month Transaction volume over R$4 bn More than 1.6 million vehicles with equipment installed
- 38. STP – Serviços e Tecnologia de Pagamentos (Electronic Toll System) Gross Revenue (R$ mn) Number of TAG’s Installed (mn) 1,799 240 1,303 155 909 112 740 90 539 66 2005 2006 2007 2008 2009 * 2005 2006 2007 2008 2009 * * Actual to October and trend for Nov and Dec 2009.
- 39. ViaQuatro ViaQuatro Project on schedule... 1st Phase 2nd Phase 3rd Phase Mar/10 Dec/09 Nov/09 Commercial Oct/08 Receipt of Operation May/08 1st Train Shipment Contracting of 1st Train Nov/07 of LT Aug/07 Serv. Order Financing Operational Serv. Order Production Nov/06 Tests Project May/06 Supply Contracting Contract Bidding Signing Organizational Evolution and Contract Management
- 40. ViaQuatro
- 41. ViaQuatro Shipment of a Subway Train
- 42. Controlar Highlights Barra Funda Inspection Center The Vehicle Emissions Control Program was launched in 2008 for diesel vehicles As of 2009, inspection became mandatory for all diesel vehicles and motorcycles, as well as for Otto cycle vehicles (gasoline, ethanol and VNG) manufactured as of 2003 and registered in the city of São Paulo Today, 14 centers are in operation and by the end of the year another 7 will be inaugurated Anchieta Inspection Center Vehicle inspection is a regular procedure in other countries: Australia, United States, Canada, EU countries, Argentina, Mexico, Chile and Japan Target fleet in 2010 = 4.4 million vehicles: • 2.3 times the 2009 fleet • Estimated revenue for 2010: R$ 250 mn
- 43. Other Projects and Prospects CONAMA Resolution (already passed by congress and awaiting enactment) Expands mandatory vehicle inspection nationwide Draft bill sent by the State Environmental Secretariat to the São Paulo State Legislature on Nov/18/09: Makes vehicle inspection mandatory statewide Allows execution under the concession model Municipalities of Santo André, São Bernardo do Campo, São Caetano do Sul, Diadema, Mauá, Ribeirão Pires and Rio Grande da Serra are already forming a consortium for the Program’s implementation.
- 44. Controlar Vehicle Inspection Centers Casa Verde Vila Medeiros Extra Penha São Miguel Pq S. Jorge Pirituba Barra Funda Itaquera Jaguaré Raposo Tavares Pq. do Carmo Extra Morumbi Anchieta Morumbi Aricanduva Pq. do Estado OPERATING Cidade Dutra UNDER CONSTRUCTION TEMPORARY INSPECTION SITE CONTRACTED
- 45. Well Planned Past. Proven Track Record. Ready for the Future. Achieving a Higher Level
- 46. Growth Strategy New Businesses Leonardo Vianna
- 47. Multiple Investment Opportunities Consolidation Opportunities to acquire selected existing road concessions (Secondary Market) Ring Road Auction of southern and eastern sections of ring road São Paulo State 3rd round of auctions for concessions in São Paulo state Concessions Multiple projects throughout country, including subways Urban Transportation and trains in cities of Curitiba, Brasília and Porto Alegre Related Businesses Parking lots, vehicle inspection, logistics, etc. Minas Gerais State Auction of concessions in Minas Gerais state Concessions Federal Concession Program 3rd and 4th rounds expected in 2010 / 2011 São Paulo Airport Expressway and High Speed Train Trains (Campinas – São Paulo – Rio de Janeiro), etc.
- 48. Ring Road: Landmark Highway Hub in Brazil CCR is the best player for winning concessions for the remaining ring road sections… Anhangüera/ Government-supported initiative to reduce traffic in Bandeirantes São Paulo metro area Fernão Dias Dutra CCR already manages the concession for the Ayrton Senna western section, the only one in operation to date Castello Branco CCR is uniquely positioned since it not only operates Raposo Tavares the western section but also 4 connecting roads Western Section Anchieta Southern Section Imigrantes Northern + Eastern section Remaining sections expected to be auctioned in CCR concession 2009/2010 Régis Bittencourt Total Investment Concession Fees Concession Bidding Project (R$ mn) (R$ mn) Term Documentation Southern Ring Road 752 800 35 years 2009 Eastern Ring Road 903 (1) 1,000 35 years 2011 Total 1,655 1,800 (1) Assuming the state government is responsible for construction works …given CCR’s potential synergies with the western section it currently operates
- 49. São Paulo State Concession Program Investment opportunity with significant potential to capture operating synergies with NovaDutra… São Paulo State Concession Program State accounts for 34% of national GDP (1) Sâo Luis do Paraitinga Dutra Two coastal highways with combined investment of R$ 5.1 bn Ubatuba Bidding documentation expected in early 2010 Caraguatatuba Bertioga Sâo Sebastiâo To be auctioned Potential synergies with CCR’s existing toll road Santos Illhabela Guarujá concessions Mongaguá Itanhaém Miracatu Pedro de Toledo Peruibe BR116 Itariri SP055 (1)IBGE data (2007) …while taking advantage of heavy traffic from both passenger and commercial vehicles
- 50. Federal and Minas Gerais Concession Programs Opportunity to expand national footprint... Minas Gerais State Concession Program Minas Gerais program includes 17 highways totaling 5,777 km for auction in 2010 Program developed in conjunction with private sector suggests better bidding process / Investments expected to total R$8.9 bn plus R$1.2 bn in concession fees Federal Concession Program Federal government to resume its Highway Concession Program 3rd and 4th round expected to be auctioned in 2010/2011 Federal Federal Revenue Investment Concession Bidding Highways Highway (R$ mn)1 (R$ mn) Term Documentation 1 BR 116 / MG 8,813 3,933 25 years 2010/2011 3rd round 2 BR 040 / MG 9,582 3,067 25 years 2010/2011 3 BR 381 / MG 6,147 2,208 25 years 2010/2011 Total 24,541 9,208 (1) Estimated revenue over entire concession term adjusted for inflation …and capture the economic growth projected for Minas Gerais and neighboring states
- 51. 2014 World Cup and 2016 Olympics Heavy investment requirements in urban transportation and related businesses... Main Urban Transportation Projects Estimated Infrastructure Investments for 2014 World Cup (R$ bn) Brasília Subway: R$ 1 bn Porto Alegre Subway: R$ 2.5 bn Fortaleza: 9.4 Curitiba Subway: R$2 bn + R$ 200 mn (urban transportation) Natal: 3.5 Light Rail Transport in Fortaleza: R$ 565 mn Recife: 5.0 Salvador: 5.0 Natal: R$ 878 mn (Light Rail Transport) Manaus: 1.5 Brasília: 3.5 Cuiabá: 3.0 Related Businesses Belo Horizonte: 1.5 Rio de Janeiro: 11.0 Parking lots, vehicle inspection in metropolitan São Paulo: 33.4 areas, other concessions Curitiba: 4.5 Express Trains R$ 86 bn Porto Alegre: 5.0 International Airport Express (Guarulhos) 2016 Olympics in Rio de Janeiro: Initial estimates indicate investment High Speed Train (Campinas – São Paulo – Rio de requirements of US$ 14.4 bn Janeiro) Source: federal / state governments … driven by 2014 World Cup and 2016 Olympics.
- 52. New Businessess 2009 2008 2007 Follow on 2006 R$ 1,235 mn 2005 2004 2003 Follow on R$ 334 mn
- 53. Well Planned Past. Proven Track Record. Ready for the Future. Achieving a Higher Level
- 54. Financial Strategy Arthur Piotto
- 55. Financial Strategy Adequate financial structure and solid balance sheet 1 Successful Capital Increase with Diversified Demand 2 Greater Financial Flexibility after Capital Increase 3 Lower Average Cost of Debt 4 Long Term Financing of Western Section of Ring Road in Final Phase 5 Long Term Debt Profile and Renewed Guarantee Structure 6 Stronger Investment Capacity 7 Commitment to Pay at Least 50% of Net Income in Dividends Company well positioned to benefit from large project pipeline.
- 56. Financial Strategy Pre-Offering Ownership Structure (%) Offering Summary 17.9% • Offering structure: public primary share offering • Shares offered: 33,300,000 common shares (Novo 17.7% Mercado listing segment) • Greenshoe: 4,995,000 shares Free Float • Final price: R$ 33.00/share 28.6% • Net Offering volume: R$ 1,235 mn 17.9% • Use of proceeds: Provide funds to explore new growth opportunities through bids or acquisition of existing 17.9% businesses Post- Offering Ownership Structure (%) Allocation by Region Asia, 3% 16.3% 16.2% Brazil, 34% United States, 48% Free Float 34.8% 16.3% Europe, 15% 16.3%
- 57. Financial Strategy Leverage ratios include investments in new assets, ViaQuatro, RodoAnel, Controlar... Gross Debt Net Debt 4,655 3,938 2,703 2,914 2,338 1,774 1,932 1,467 1,276 1,277 1,213 1.20 0.91 0.91 1.43 2.06 1.41 3Q05 3Q06 3Q07 3Q08 3Q09 3Q05 3Q06 3Q07 3Q08 3Q09 3Q09 Includes funds from capital Net Debt/EBITDA LTM increase ...but still do not fully consider the additional cash generation.
- 58. Financial Strategy Lower interest rates and Brazil obtaining investment grade.... Debt by Index – 3Q09 2009 Average Debt Cost Evolution* IGPM 13% 13.45% 13.39% 12.49% BNDES 7% 12.04% Foreign 11.61% Currency 9.90% 6% 9.43% 9.19% CDI 60% 9.42% 9.16% Fixed 11% IPCA Jan Feb Mar Apr May Jun Jul Aug Sep Oct 3% * In R$ in nominal terms ...contribute to continuous reductions in debt costs
- 59. Ring Road Financing Structure Long term financing of Ring Road in final phase Bridge Loans Long Term Disbursement May/08 Dec/09 • Financing of initial concession payment • Long term financing structure for • Financing of short term investments Ring Road • Negotiation of long-term loan conditions Characteristics of Long Term Financing • R$750 mn (subordinated, 3-year) – already disbursed • US$500 mn (senior) – IDB, JBIC and B-Lender disbursements slated for Dec/09 • Approximate cost LIBOR + 3.5% • Senior debt term: 13-15 years • Specific hedge policy
- 60. Ring Road Financing Structure Hedge Characteristics – Rolling 5-year at LIBOR SWAPs for FX exposure of Cash Flow maturing in next 24 months Financing Status Ring Road Concession: R$2 bn October 2009: November 2009: Final Disbursement (10% cash + 24x) Issue Issue December 2009: Debentures R$750 mn Promissory Notes R$500 mn U$500 mn 6 installments 3-years – 117.5% of CDI 180 days Long Term: 13-15 years outstanding Oct-09 Nov-09 Dec-09 Amortization Amortization Refinancing Promissory Notes due in Promissory Notes due in Nov/09 Promissory Notes due in Nov/09 Oct/09 Resolved
- 61. Amortization Schedule Disbursement of long term loan for Ring Road, combined with... 3Q09 Debt Amortization Schedule Expected Debt Amortization Schedule 1,600 1,482 1,600 1,400 1,400 1,200 1,200 1,000 914 1,000 908 800 712 800 600 560 549 558 538 392 600 468 400 323 346 343 346 219 193 216 190 185 400 143 51 200 200 124 mn R$ 09 10 11 12 13 14 15 16 17 18 19 mn R$ 09 10 11 12 13 14 15 16 17 18 19-23 Renewal of Guarantee Insurance Package CCR renewed its facility this month under the following conditions: • Capacity offered by reinsurers of R$ 3.1 bn • R$ 2.2 bn contracted • R$ 1.4 bn used as of Sep/09 • Remaining balance of R$ 800 mn for growth … renewal of guarantee facility prepares CCR for a change in level
- 62. Investment Capacity CCR has high capacity to benefit from this unique moment in Brazil • Financial covenants limit debt to 3.0x Net Debt/EBITDA • Target structure of 70% for New Projects while always seeking Project Finance Pre-Offering Situation CURRENT Situation R$1,235 mn Capital Increase R$1 bn ~ R$4.1 bn Investment Capacity Investment Capacity Positive macro scenario and Brazil obtaining investment grade could allow higher leverage levels in the future Situation marked by Investment Assuming 100% easing interests Capacity of covenant in future projects ~ R$6.3 bn conditions (1) The EBITDA used in calculations was market consensus of R$2,000 mn for 2009 and the market’s average growth expectation of 13.5%
- 63. Dividends We reiterate our commitment to a minimum dividend payment of 50% of net income Dividend Yield Accrual Payout 120.0% 5.5% 5.6% 5.2% 100.0% 91.2% 5.0% 4.5% 83.2% 83.0% 4.2% 4.2% 76.6% 80.0% 70.6% 4.0% 60.4% 60.0% 3.0% 2.5% 2.0% 40.0% 27.4% 1.0% 20.0% 8.2% 0.0% 0.0% 2003 2004 2005 2006 2007 2008 2009 2002 2003 2004 2005 2006 2007 2008 2009* Average historical payout above 60% Since 2004, average payout of 80% * Based on cash dividend * Market Consensus
- 64. Well Planned Past. Proven Track Record. Ready for the Future. Achieving a Higher Level
- 65. Final Remarks
- 66. Proven Track Record CCR has a proven track record in acquisitions, diversification and new bids Milestone Concession Awarded Acquisition Concession Extension IPO STP AutoBAn + Follow-on (2002) ViaOeste (2003) ViaOeste RodoNorte (October 2004) (April 2004) Concession (2005) ViaQuatro Extension (2006) (2006) USA (2007) RenoVias (2008) RodoAnel (2008) Controlar (2009) Follow-on (2009) Upcoming Multiple Growth Projects… Opportunities
- 67. Well Planned Past. Proven Track Record. Ready for the Future. Achieving a Higher Level
- 68. Thank you.