Forward-Looking Statement
 This presentation contains certain statements that are neither reported financial
 results or o...
Agenda

09:00 a.m. Welcome – Renato Vale
09:10 a.m. The Sector Today – Márcio Batista
09:45 a.m. Traffic Trends – Arthur P...
The Sector Today
 Tolls: Problem or solution?
  • Transportation infrastructure sector requires huge investments

  • Rest...
USA
                                                                    GDP                 Population       Road network ...
Florida
Mexico – Federal Concession
    Short-term – estimated projects

                                                  Extensi...
Mexico – Federal Concession
   Midterm - projects in preparation
                                                         ...
Mexico – Federal PPS
  Short-term – estimated projects

                                Extension           Investments
  ...
Mexico – Federal PPS
  Mid-term – estimated projects
                                  Extension           Investments
   ...
Mexico – asset monetization (FARAC)
 Short-term – estimated projects
                                     Extension   Inve...
Mexico – asset monetization (FARAC 2)
                                                                             Brownfi...
Mexico – asset monetization (FARAC 3)

 Tijuana
       Mexicali

                  Nogales            Ciudad Juárez



   ...
Mexico – asset monetization
 Mid-term – other estimated projects
                                           Extension   In...
Mexico – asset monetization
 Mid-term – other estimated projects

                                      Extension   Invest...
The Sector Today
    Main concession models

                                                             Project without
...
The Sector Today
       Leading global players – Market Value US$ billion*
      21,987 21,437




                       ...
The Sector Today in Brazil

 • Total paved highways: 196,094 km



                          6% - 9,834 km granted to priv...
The Sector Today in Brazil
   Means of Transportation in Brazil
   Passenger Transport                                    ...
The Sector Today in Brazil
     Leading players in Brazil
                                      In km                     ...
The Sector Today
 Success factors

 • Clearly defined strategy

 • Differentiated access to capital market

 • Service exc...
Traffic Trends
Historical Performance and Current Scenario
CCR System Traffic Growth
 Characteristics of the CCR highways

                     AutoBAn:
                    • Cars: ...
CCR System Traffic Growth
  AutoBAn - Characteristics of the highway
   • Growth in the last 12 months = 6.9%
   • Growth ...
CCR System Traffic Growth
 Characteristics of CCR highways

                 ViaOeste:

                 • Cars: commuter ...
CCR System Traffic Growth
 ViaOeste - Characteristics of the highway
 • Growth in the last 12 months = 7.7%
 • Growth betw...
CCR System Traffic Growth
 Characteristics of CCR highways


                NovaDutra:

                • Cars: commuter ...
CCR System Traffic Growth
 NovaDutra - Characteristics of the highway
 • Growth in the last 12 months = 4.4%
 • Growth bet...
CCR System Traffic Growth
 Characteristics of CCR highways


                  RodoNorte:

                  • Cars: commu...
CCR System Traffic Growth
 RodoNorte - Characteristics of the highway
  • Growth in the last 12 months = 7.9%
  • Growth b...
CCR System Traffic Growth
 Characteristics of CCR highways


                         Ponte:
                         • Ca...
CCR System Traffic Growth
        Rio-Niterói - Characteristics of Ponte
        • Growth in the last 12 months = 2.1%
   ...
CCR System Traffic Growth
 Characteristics of CCR highways


                 ViaLagos:

                 • Cars: weekend ...
CCR System Traffic Growth
   ViaLagos - Characteristics of the highway
    •   Growth in the last 12 months = 0.4%
    •  ...
CCR System Traffic Growth
 CCR Consolidated - Characteristics of CCR highways
 •   Growth in the last 12 months = 6%
 •   ...
CCR System Traffic Growth
       CCR Consolidated - Historical Evolution & Elasticity

           Comparison between growt...
Traffic x GDP –Global View
                Traffic Elasticity / GDP
                   Country               2004
        ...
Motorization Index – Global View
                                                                                         ...
Motorization Index – Historical Evolution
    Inhabitants per vehicle - Brazil
           9.4
                    9.1
    ...
Automobile fleet expansion potential
    Domestic Sales
                                                                  ...
Conclusions
 • Characteristics of our highways minimize impacts from sector crises.

 • Historical traffic elasticity is 1...
Evaluation of the Current Portfolio
Evaluation of the Current Portfolio
 How to extract value from our portfolio
  1. Traffic

  2. Financing
       • Overvie...
Traffic
                  Historical growth: 1.5x GDP
             Average market assumption: 1.0x GDP




  Exercise => W...
Traffic
      Estimated traffic evolution

                                                            2008         2009  ...
Evaluation of the Current Portfolio
 How to extract value from our portfolio
  1. Traffic

  2. Financing
       • Overvie...
Importance of financing

     Government’s Goal                                 Investor’s Goal



  To minimize project’s...
Financing process
 •   Hiring a financial advisor
 •   Drawing up the financial structure
         To maximize IRR (value ...
History of CCR in Project Finance

1996           BNDES/IFC        R$ 170 MM and US$ 115 MM

1996           BNDES         ...
Debt Restructuring
 • Multilateral prepayment
 • 100% local currency
 • Maturity extension
 • Dividend anticipation

     ...
Recent Operations
 ViaQuatro – 2007
 • Recently we entered into a Project Finance agreement with IDB for
   the acquisitio...
Recent Operations
 Farac – Mexico – 2007

                                       CCR                  Goldman / ICA (winni...
Current Portfolio Appreciation
 How to extract value from our portfolio
  1. Traffic

  2. Financing
       • Overview
   ...
Releveraging: value generation for CCR

 It allows an extraordinary distribution of dividends anticipating future
 cash fl...
CCR’s Debt Breakdown
             Breakdown                                           Debt Amortization
          Other - ...
Leverage and interest rate: impact on value

Exercise => What is the value creation when we adopt more
           optimist...
Leverage and interest rate: impact on value

                                                        Value Added   Value p...
Current Porftolio Appreciation
 How to extract value from our portfolio
  1. Traffic

  2. Financing
       • Overview
   ...
Evolution of macroeconomic indicators
                    70%          69%


                    60%

                    ...
Evolution of WACC of CCR – US$ nominal
25%
             23.6%


                                        20.6%
20%



     ...
CCR among its peers

                                                                            Net    EBITDA   Dividend ...
Capital Market
                                  Average trading volume in the last 90 days                               ...
New Businesses
Regulatory Framework 1994 x 2007 – Federal Concessions
                              1994                                 ...
NovaDutra
                       80%
                                                                                     ...
NovaDutra
                       30%
                                                                                     ...
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Ccr day 3 presentation

  1. 1. Forward-Looking Statement 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.
  2. 2. Agenda 09:00 a.m. Welcome – Renato Vale 09:10 a.m. The Sector Today – Márcio Batista 09:45 a.m. Traffic Trends – Arthur Piotto 10:25 a.m. Coffee Break 10:45 a.m. Evaluation of Current Portfolio – Ricardo Froes 11:20 a.m. Perspectives for CCR – Leonardo Vianna 12:00 p.m. Q&A Session 12:30 p.m. Lunch
  3. 3. The Sector Today Tolls: Problem or solution? • Transportation infrastructure sector requires huge investments • Restrictions on government budgets • Greater efficiency of private sector • Funding available from sector players and international investment funds Global Tendency
  4. 4. USA GDP Population Road network Fleet US$ billion million thousands of km million California 1,551 35.9 273 29 Texas 884 22.5 486 15 . CA . VA . NC Florida 599 17.4 194 14 . X North . FL 336 8.5 164 6 Carolina Virginia 329 7.5 115 6 Source: US Bureau of Economics Analysis, team analysis
  5. 5. Florida
  6. 6. Mexico – Federal Concession Short-term – estimated projects Extension Investments Greenfield Project km US$ MM Libramiento de La Piedad and Access to México – 50 67 Guadalajara Expressway Compostela – Puerto Vallarta 104 324 Libramiento de Chihuahua 41 63 Total 195 454
  7. 7. Mexico – Federal Concession Midterm - projects in preparation Extension Investments Greenfield Project km US$ MM Entronque Prefiférico Guadalajara – Entronque Ixtlahuacan del Río 30 114 Libramiento de Playa del Carmen 20 45 Libramiento de Ciudad Juárez 15 45 Salamanca - León 85 182 Libramiento de Puerto Vallarta 20 45 Cuapiaxtla - Cuacnopalan 74 132 Libramiento Sur de Puebla 45 91 La Venta – Colegio Mulitar 22 364 Colegio Militar - Chalco 40 318 Indios Verdes – Santa Clara 12 136 Puente Internacional Río Bravo - Donna 0.2 18 Total 363.2 1,490
  8. 8. Mexico – Federal PPS Short-term – estimated projects Extension Investments Upgrade Project km US$ MM Upgrade Maintenance Mitla – Entronque Tehuantepec 163 364 117 Zacatecas - Saltillo 213 109 386 Total 376 473 503
  9. 9. Mexico – Federal PPS Mid-term – estimated projects Extension Investments Upgrade Project km US$ MM Upgrade Maintenance Apizaco - Calpulalpan 51 109 79 Macuspana – Campeche / Quintana 434 129 142 Roo state border Arriaga – La Ventosa 137 82 106 Salina Cruz - Huatulco 146 200 266 Acayucan – La Ventosa 170 182 260 Total 938 448 853
  10. 10. Mexico – asset monetization (FARAC) Short-term – estimated projects Extension Investments Greenfield Projects Existing Expressway – Sale km US$ MM • Atizapán - Atlacomulco • Chamapa - Lechería 107 455 • Ampliación Chamapa - Lechería • Atlacomulco - Maravatío • Libramiento de Mazatlán • Culiacán - Mazatlán • Libramiento de Culiacán 88 300 • San José – Cabo San Lucas • Corredor Turístico de Los Cabos • Reynosa – Matamoros • Puente Int. Reynosa / Pharr • Libramiento Sur de Reynosa • Puente Los Tomates • Allende – Juaréz • Monterrey – Nuevo Laredo • Sabinas – Colombia 219 487 • Cadereyta – Reynosa (8 works) 306 km / 2006 revenues of US$ 102 million Total 414 1,242
  11. 11. Mexico – asset monetization (FARAC 2) Brownfield: Culiacán - Mazatlán Tijuana Mexicali Construction: Libramiento de Mazatlán / Libramiento de Culiacán Nogales Ciudad Juárez Piedras Negras Hermosillo Chihuah ua Nuevo Laredo Matamoros Torreón Saltillo Monterrey Culiacán Brownfield: Chamapa – Lechería / Atlacomulco - Maravatío La Paz Durango Ciudad Construction: Atizapán – Atlacomulco / Ampliación Chamapa - Lechería Mazatlán Victoria Zacatecas Luis Potosí San Tampico Can Aguascalientes Progreso cún Tepic Tuxpan Mérida Querétaro Guadalajara Atlacomulco Campeche Ecua Jalapa Colima Toluca D.F. México ndur Morelia Veracruz Manzanillo Puebla Cuernavaca Villa Hermosa Chetumal eo Lázaro Cárdenas Chilpancingo Oaxaca Acapulco Tuxtla Gutiérrez Salina Cruz Huatulco Brownfield: San José – Cabo San Lucas Ciudad Hidalgo Construction: Corredor Turístico de Los Cabos
  12. 12. Mexico – asset monetization (FARAC 3) Tijuana Mexicali Nogales Ciudad Juárez Piedras Negras Hermosillo Chihuahua Nuevo Laredo Matamoros Torreón Saltillo Monterrey Culiacán La Paz Durango Ciudad Mazatlán Victoria Zacatecas San Luis Tampico Can Aguascalientes Potosí Progreso cún Tepic Tuxpan Mérida Querétaro Guadalajara Atlacomulco Campeche Ecuan Jalapa Toluca Colima Morelia México D.F. Veracruz Manzanillo dureo Puebla Cuernavaca Villa Hermosa Chetumal Lázaro Cárdenas Chilpancingo Oaxaca Acapulco Tuxtla Gutiérrez Salina Cruz Huatulco Ciudad Hidalgo
  13. 13. Mexico – asset monetization Mid-term – other estimated projects Extension Investments Greenfield Projects Existing Expressway - Sale km US$ MM • San Martín Texmelucan - • Xoxtla - Tlaxcala 27 86 Tlaxcala • Libramiento de Tlaxcala • Libramiento de Champotón • Champotón – Entronque Autopista • Champotón – Campeche 77 132 • Libramiento de Villahermosa • Agua Dulce - Cárdenas • Ent. Reforma – Ent. Lib. Villahermosa • Pátzcuaro – Uruapan • Libramiento Poniente de Morelia • Uruapan – Nueva Italia • Palmillas – Apaseo 204 491 • Nueva Italia – Lázaro Cárdenas • Libramiento de Uruapan • Libramiento Oriente de • Ampliación Pátzcuaro - Uruapan Querétaro • Libramiento Sur de Guadalajara 136 364 • Guadalajara - Tepic • Libramiento de Tepic
  14. 14. Mexico – asset monetization Mid-term – other estimated projects Extension Investments Greenfield Projects Existing Expressway - Sale km US$ MM • Libramiento de Hermosillo • Libramiento de Ciudad Obregón • Estación Don - Nogales 550 364 • Modernización Estación Don - Nogales • Cuautla - Alpuyeca • Libramiento de Cuernavaca • Cuernavaca - Acapulco • Libramiento de Chilpancingo 158 636 • La Pera - Cuautla • Libramiento de Acapulco • Modernización la Pera - Cuautla • Tuxpam – Tampico y Libs. • Córdoba - Veracruz 251 582 • Laguna Verde – Gutiérrez Zamora • Gutiérrez Zamora - Tihuatlán
  15. 15. The Sector Today Main concession models Project without Greenfield Brownfield demand risk Easier to estimate traffic Greater demand risk Construction focus More accelerated cash flow Payments to the concessionaire More stable cash flow growth by the granting power Construction works risk Lower project execution risk
  16. 16. The Sector Today Leading global players – Market Value US$ billion* 21,987 21,437 12,553 9,118 8,873 7,154 6,785 6,293 5,179 4,882 4,686 up 1,023 570 ay ay ay o up de is l a a S si os R ris tr ro sw sw rt sw U ro a C ra in be rm tr PL G B C G es es es B C os A fr he an L pr pr pr ut In H le Ex Ex rb Ex A O ie al su ar rV ng ok u gs an qu gk ia cy an Tr ac ej an Sa Zh Ji M B * 11/16//2007
  17. 17. The Sector Today in Brazil • Total paved highways: 196,094 km 6% - 9,834 km granted to private enterprise • Existing concessionaires: 37, before the federal auction • Location: states of Rio Grande do Sul, Paraná, Minas Gerais, São Paulo, Rio de Janeiro, Espírito Santo, Bahia and Pernambuco.
  18. 18. The Sector Today in Brazil Means of Transportation in Brazil Passenger Transport Cargo Transport Air 2% Subway 1% Pipeline 5% Air 0.3% Rail 1% Maritime 13.7% 2000 Road 62% Road 96% Rail 19% Rail 1.4% Air 2.4 % Pipeline 3.7% Maritime 13.0% Rail 24.0% 2006 Air 0.3% Source: Ministry of Transport 2006 Road 96.2% Road 59.0% Source: National Transport Confederation (CNT)
  19. 19. The Sector Today in Brazil Leading players in Brazil In km Revenues 1,452 Before 1,147 993 913 CCR 42% 430 367 58% 235 Others CCR OHL Univias Ecorodovias Civilia Triunfo Encalso 3,226 After 1,452 993 913 CCR 430 367 235 36% * Others 64% OHL CCR Univias Ecorodovias Civilia Triunfo Encalso * Estimated shares after federal highway auction Qualified portfolio
  20. 20. The Sector Today Success factors • Clearly defined strategy • Differentiated access to capital market • Service excellence • Ability to foresee trends and develop business
  21. 21. Traffic Trends Historical Performance and Current Scenario
  22. 22. CCR System Traffic Growth Characteristics of the CCR highways AutoBAn: • Cars: commuter traffic between 2 major cities (São Paulo and Campinas); weekend tourism traffic (areas of Valinhos, Vinhedo, Campinas, Cabreúva, etc.). • Commercial vehicles: general bulk cargo, agricultural crops from São Paulo and other states; channel for export outflow (Santos and São Sebastião); automobile makers (Honda, Toyota); distribution centers (VW, C. Bahia, L. Marabrás, M. Luiza, Natura, etc.). • 3Q07 – 38.4% of total toll revenue. The great variety of products transported “shields” the concessionaire, making it less vulnerable to sector crises
  23. 23. CCR System Traffic Growth AutoBAn - Characteristics of the highway • Growth in the last 12 months = 6.9% • Growth between Jan. and Oct. 2007 = 7.2% • Growth from Oct. 2006 to Oct. 2007 = 11.2% • Traffic Mix = 43.7% light vehicles / 56.3% commercial vehicles Annual Traffic Evolution Monthly Traffic Variation AutoBAn AutoBAn 11.2% 20.2% 8.2% 7.9% 7.7% 7.3% 7.0% 6.6% 5.8% 6.1% 5.9% 5.4% 10.9% 4.5% 4.7% 9.0% 6.5% 7.2% 2.2% 2.6% 0.5% 2000 2001 2002 2003 2004 2005 2006 2007 Oct/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Oct/07
  24. 24. CCR System Traffic Growth Characteristics of CCR highways ViaOeste: • Cars: commuter traffic between the regions of Sorocaba, Alphaville and São Paulo; weekend tourism traffic (regions of Itu, Cotia, Ibiúna, Indaiatuba, Cabreúva, Araçoiaba Serra, etc.). • Commercial vehicles: general bulk cargo, agricultural produce from São Paulo and other states; automobile maker (Toyota); distribution centers (GM, Friboi, Eurofarma, etc.); channel for export outflow (Santos). • 3Q07 – 16.9% of total toll revenue. The great variety of products transported “shields” the concessionaire, making it less vulnerable to sector crises
  25. 25. CCR System Traffic Growth ViaOeste - Characteristics of the highway • Growth in the last 12 months = 7.7% • Growth between Jan. and Oct. 2007 = 7.7% • Growth from Oct. 2006 to Oct. 2007 = 10.7% • Traffic Mix = 50.7% light vehicles / 49.3% commercial vehicles Annual Traffic Evolution Monthly Traffic Variation ViaOeste ViaOeste 10.7% 9.6% 14.3% 9.4% 9.0% 8.3% 8.3% 12.0% 8.0% 7.6% 7.3% 7.2% 8.3% 5.6% 7.7% 6.0% 5.3% 5.3% 4.9% 4.1% -1.5% 2000 2001 2002 2004 2005 2006 2007 Oct/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Oct/07 2003
  26. 26. CCR System Traffic Growth Characteristics of CCR highways NovaDutra: • Cars: commuter traffic between 3 major cities (São Paulo, Rio de Janeiro and São José dos Campos); weekend tourism traffic (Campos do Jordão, Serra da Mantiqueira and the coast of São Paulo state) • Commercial vehicles: general bulk cargo; automobile makers (GM, VW, Citroën/Peugeot) and CSN. • 3Q07 – 27.0% of total toll revenue. The great variety of products transported “shields” the concessionaire, making it less vulnerable to sector crises
  27. 27. CCR System Traffic Growth NovaDutra - Characteristics of the highway • Growth in the last 12 months = 4.4% • Growth between Jan. and Oct. 2007 = 4.6% • Growth between Oct. 2006 / Oct. 2007 = 8.5% • Traffic Mix = 27.8% light vehicles / 72.2% commercial vehicles Annual Traffic Evolution Monthly Traffic Variation NovaDutra NovaDutra 8.5% 9.0% 6.5% 6.1% 5.4% 5.0% 5.1% 4.9% 4.6% 4.0% 2.8% 2.9% 2.1% 0.8% 1.4% 0.6% 0.6% 1.6% -0.3% 0.0% 0.0% 2000 2001 2002 2004 2005 2006 2007 Oct/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Out/07 2003
  28. 28. CCR System Traffic Growth Characteristics of CCR highways RodoNorte: • Cars: commuter traffic between the regions of Curitiba, Ponta Grossa, Apucarana, Londrina, etc. • Commercial vehicles: agricultural produce from Paraná and other states; channel for export outflow (Paranaguá, S. Francisco do Sul and Itajaí). • 3Q07 – 11.9% of total toll revenue. The variety of outflowed products is growing, becoming less dependent on the agriculture and livestock industry
  29. 29. CCR System Traffic Growth RodoNorte - Characteristics of the highway • Growth in the last 12 months = 7.9% • Growth between Jan. and Oct. 2007 = 9.3% • Growth from Oct. 2006 to Oct. 2007 = 16.7% • Traffic Mix = 21.6% light vehicles / 78.4% commercial vehicles Annual Traffic Evolution Monthly Traffic Variation RodoNorte RodoNorte 16.7% 14.6% 9.3% 14.2% 11.4% 7.1% 6.5% 5.9% 8.6% 9.8% 4.8% 7.5% 4.8% 3.4% 2.8% 2.0% 1.9% -7.1% -2.6% -0.8% 0.1% 2001 2002 2003 2004 2006 2007 Oct/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Oct/07 2005 2000
  30. 30. CCR System Traffic Growth Characteristics of CCR highways Ponte: • Cars: commuter traffic between 2 metropolitan areas: Rio and Niterói; weekend tourism traffic (Lagos region) • Commercial vehicles: light commercial vehicle traffic for urban distribution • 3Q07 – 3.8% of total toll revenue. The traffic behavior for this concessionaire shows a moderate growth potential
  31. 31. CCR System Traffic Growth Rio-Niterói - Characteristics of Ponte • Growth in the last 12 months = 2.1% • Growth between Jan. and Oct. 2007 = 2.6% • Growth from Oct. 2006 to Oct. 2007 = 5.3% • Traffic Mix = 83.0% light vehicles / 17.0% commercial vehicles Annual Traffic Evolution Monthly Traffic Variation Ponte Ponte 6.3% 5.3% 4.7% 4.3% 5.0% 3.5% 2.6% 1.9% 1.0% 1.1% 1.7% 0.5% 0.6% -2.0% -1.4% -1.3% 0.1% -0.8% -0.7% -1.1% -2.0% 2001 2002 2004 2006 2007 Apr/07 Jun/07 Aug/07 Oct/07 2005 Oct/06 Dec/06 2000 2003 Feb/07
  32. 32. CCR System Traffic Growth Characteristics of CCR highways ViaLagos: • Cars: weekend tourism traffic • Commercial vehicles: light commercial vehicle traffic to supply the local businesses; heavy commercial vehicle traffic to cater to the oil industry in Macaé region. • 3Q07 – 2.0% of total toll revenue. The concessionaire's traffic is becoming increasingly less dependent on local tourism, and showing a greater adherence to the evolution in services and in the oil industry
  33. 33. CCR System Traffic Growth ViaLagos - Characteristics of the highway • Growth in the last 12 months = 0.4% • Growth between Jan. and Oct. 2007 = 5.0% • Growth from Oct. 2006 to Oct. 2007 = 20.3% • Traffic Mix = 79.1% light vehicles / 20.9% commercial vehicles Annual Traffic Evolution Monthly Traffic Variation ViaLagos ViaLagos 9.1% 7.3% 21.5% 17.9% 20.3% 5.0% 7.0% 8.2% 2.1% 5.7% -1.1% 0.3% -11.8% 1.5% -7.5% -4.5% -7.8% -30.0% -3.8%-7.8% -1.9% 2001 2003 2004 2005 2006 2007 Feb/07 Apr/07 Jun/07 Aug/07 Oct/07 2002 Oct/06 Dec/06 2000
  34. 34. CCR System Traffic Growth CCR Consolidated - Characteristics of CCR highways • Growth in the last 12 months = 6% • Growth between Jan. and Oct. 2007 = 6.5% • Growth from Oct. 2006 to Oct. 2007 = 10.5% • Traffic Mix = 43.5% light vehicles / 56.5% commercial vehicles Annual Traffic Evolution Montly Traffic Variation CCR CCR 10.5% 10.2% 8.2% 8.0% 7.8% 7.2% 7.1% 5.7% 5.4% 6.5% 5.0% 5.0% 5.1% 5.1% 4.7% 4.0% 2.9% 3.3% 1.8% 2.3% 0.3% 2000 2001 2002 2003 2004 2005 2006 2007 Oct/06 Dec/06 Feb/07 Apr/07 Jun/07 Aug/07 Oct/07
  35. 35. CCR System Traffic Growth CCR Consolidated - Historical Evolution & Elasticity Comparison between growth in GDP and Traffic 4Q99 = BASE 100 160 Annual VEQ CCR 150 Year GDP (1) 2000 4.3% 1.8% 140 2001 1.3% 10.2% 2002 2.7% 7.8% 130 2003 1.2% 0.3% 120 2004 5.7% 7.1% 2005 2.9% 2.9% 110 2006 3.7% 2.3% 2007 (2) 4.9% 6.5% 100 Accumulated 29.9% 45.6% 90 Elasticity 1.5 80 (1) IBGE – new methodology 99 03 00 00 01 01 02 02 03 04 04 05 05 06 06 07 (2) Jan-Oct 4Q 4Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q 2Q 4Q 2Q 4Q 2Q 4Q 2Q GDP TRAFFIC EQUIVALENT VEHICLES
  36. 36. Traffic x GDP –Global View Traffic Elasticity / GDP Country 2004 Austria 1.7 Belgium 0.8 Czech Republic 2.0 Traffic Elasticity / GDP Denmark 0.5 Concessionaire 2004 Finland 0.5 APRR (France) 0.5 France 0.7 ASF (France) 1.6 Greece 1.6 Sanef (France) 1.1 Italy 1.2 Autostrade (Italy) 1.7 Holland 0.8 Brisa (Portugal) 1.6 Norway 0.7 Abertis (Spain) 1.3 Spain 1.1 Cintra (Spain) 2.5 Sweden 0.4 Switzerland 1.3 United Kingdom 0.5 United States 0.6 Source: OECD Factbook 2007: Economic, Environmental and Social Statistics - ISBN 92-64-02946-X - © OECD 2007
  37. 37. Motorization Index – Global View 9.4 Inhabitants per vehicle 7.9 8 1996 5.7 5.8 5.7 4.8 2005 3.2 1.9 1.7 1.5 1.7 1.5 1.7 1.7 1.7 1.3 1.2 Italy Australia USA France Canada South Mexico Argentina Brazil Korea Source: Anfavea If the same trend observed in other countries reflects in Brazil, traffic x GDP elasticity ratio can increase significantly
  38. 38. Motorization Index – Historical Evolution Inhabitants per vehicle - Brazil 9.4 9.1 9.0 8.9 8.8 8.6 8.4 8.4 8.2 8.0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Anfavea The higher credit offering for the automobile industry seems to be the main driver for the decrease in this ratio
  39. 39. Automobile fleet expansion potential Domestic Sales 1,565 1,428 1,423 1,418 1,299 1,363 1,264 1,245 1,154 1,166 1,032 956 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Jan-Sep 2007 Source: Ipeadata The number of potential clients are showing strong expansion
  40. 40. Conclusions • Characteristics of our highways minimize impacts from sector crises. • Historical traffic elasticity is 1.5x Brazil GDP. • Current macroeconomic scenario suggests average annual GDP growth of 5% over the next few years. • Favorable path in the motorization index could have a strong impact on traffic indicators. • Expansion of toll-road sector should generate greater confidence (term and reach) of highway sector as a whole, including in our concessions. • Main driver of the recent acceleration in traffic growth is the stronger economic growth in the regions where our toll roads are located.
  41. 41. Evaluation of the Current Portfolio
  42. 42. Evaluation of the Current Portfolio How to extract value from our portfolio 1. Traffic 2. Financing • Overview • Releveraging • Cost of capital 3. Operating efficiency • Operating costs • Capital expenditure 4. Perpetuity
  43. 43. Traffic Historical growth: 1.5x GDP Average market assumption: 1.0x GDP Exercise => What is the value creation when we adopt more optimistic assumptions? Alternative Scenario: Future growth = historical elasticity (1.5x GDP)
  44. 44. Traffic Estimated traffic evolution 2008 2009 2010 2011 From 2012 GDP* 4.4% 4.2% 4.2% 4.0% 4.0% Alternative Scenario 6.5% 6.3% 6.3% 6.1% 6.0% * source: Brazilian Central Bank – market estimates 11/16/2008 R$ 3.0 billion R$ 7.6/share Base Scenario Alternative Scenario
  45. 45. Evaluation of the Current Portfolio How to extract value from our portfolio 1. Traffic 2. Financing • Overview • Releveraging • Cost of capital 3. Operating efficiency • Operating costs • Capital expenditure 4. Perpetuity
  46. 46. Importance of financing Government’s Goal Investor’s Goal To minimize project’s IRR To maximize shareholders’ IRR To optimize capital structure Key factors for value creation: • To maximize distribution of dividends to shareholders for investment in new projects • Financial engineering as driver of competitiveness
  47. 47. Financing process • Hiring a financial advisor • Drawing up the financial structure To maximize IRR (value and quality) To minimize shareholder commitment Payback Rating • Items to be considered: Flow diversity Ratio: Debt / (Debt + Equity) Ratio: Debt / EBITDA Coverage Ratios Reserve account Interest coverage Instruments Markets Currency / Hedge Guarantees
  48. 48. History of CCR in Project Finance 1996 BNDES/IFC R$ 170 MM and US$ 115 MM 1996 BNDES R$ 38 MM 1999 BNDES/IBD R$ 195 MM and US$ 92 MM 1999 BNDES/IBD R$ 26 MM and US$ 29 MM 2000 BNDES/BID/ IFC R$ 220 MM and US$ 161 MM 2001 BNDES R$ 255 MM TOTAL R$ 904 MM and US$ 374 MM
  49. 49. Debt Restructuring • Multilateral prepayment • 100% local currency • Maturity extension • Dividend anticipation Year Issuer Amount (R$ MM) Modality 2004 180 Debentures 2006 510 Debentures 2007 650 Debentures A continuous process...
  50. 50. Recent Operations ViaQuatro – 2007 • Recently we entered into a Project Finance agreement with IDB for the acquisition of trains and systems – US$250 MM • The process to choose the lender was very competitive and we received several proposals: Lender Modality BNDES Multilateral IDB + Commercial Banks Multilateral HSBC + BEI + NEXI Multilateral / ECA Deutsche Bank Project Bond in USD Citibank Debentures in R$ with IDB guarantee Korea Eximbank + BNP Paribas + COFACE Multilateral / ECA Korean Development Bank Multilateral KFW Multilateral JBIC Multilateral
  51. 51. Recent Operations Farac – Mexico – 2007 CCR Goldman / ICA (winning consortium) Bridge loan (syndicated with banks) Type of Loan Long Term – Capital markets with take-out (bonds – capital markets) Loan Amount US$ 3.6 Bn US$ 3.4 Bn Payment US$ 2.8 Bn US$ 3.1 Bn Liquidity US$ 800 MM US$ 283 MM Take-out 6 months 7 years Debt Cost M-BONO + 1.75% TIIE + 1.65% (years 1 and 2) Term 26 years 7 years pre-payable anytime Currency Pesos Pesos Grace Period 16 years bullet
  52. 52. Current Portfolio Appreciation How to extract value from our portfolio 1. Traffic 2. Financing • Overview • Releveraging • Cost of capital 3. Operating efficiency • Operating costs • Capital expenditures 4. Perpetuity
  53. 53. Releveraging: value generation for CCR It allows an extraordinary distribution of dividends anticipating future cash flows It generates value for It benefits the It provides shareholders project for a capital for with possible drop investment in consequent in the interest new projects improvement rate of IRR
  54. 54. CCR’s Debt Breakdown Breakdown Debt Amortization Other - CDI 104.5% - 107.3% BNDES - TJLP + (4.5% - 5.5%) 6% 12% 379 387 338 321 276 39% 43% 174 56 Debentures - CDI Debentures - IGP-M + 103.3% -105% (7.6%- 11%) 2007 2008 2009 2010 2011 2012 After 2012 As of 09/30/2007
  55. 55. Leverage and interest rate: impact on value Exercise => What is the value creation when we adopt more optimistic assumptions? Current assumptions (market average): D / EV = 40% Kd = 12.2% in R$ WACC = 9.1% in US$
  56. 56. Leverage and interest rate: impact on value Value Added Value per share Selic Kd D / EV (R$ MM) (R$ MM) Scenario A 11.1% 12.2% 40.0% Scenario B 9.0% 9.7% 40.0% 650 1.61 Scenario C 9,0% 9,7% 50,0% 1.353 3,36 R$ 650 MM R$ 1.6/share Scenario A Scenario B
  57. 57. Current Porftolio Appreciation How to extract value from our portfolio 1. Traffic 2. Financing • Overview • Releveraging • Cost of capital 3. Operating efficiency • Operating costs • Capital expenditure 4. Perpetuity
  58. 58. Evolution of macroeconomic indicators 70% 69% 60% 53% 50% %(annual average) 40% 29% 30% 27% 26% 25% 26% 23% 23% 20% 19% 19% 17% 17% 16% 16% 15% 13% 14% 12% 11% 12% 11% 12% 10% 10% 10% 10% 9% 10% 10% 10% 9% 8% 8% 8% 7% 7% 6% 5% 5% 4% 2% 2% 0% 07 94 95 96 97 98 99 00 01 02 03 04 05 06 20 19 19 19 19 19 19 20 20 20 20 20 20 20 ep ec -S l-D Ju n Ja SELIC TJLP Brazilian Risk Premium
  59. 59. Evolution of WACC of CCR – US$ nominal 25% 23.6% 20.6% 20% 16.5% 15% 14.9% 14.5% 13.9% 13.6% 13.8% 13.6% 12.0% 10.7% 10% 9.4% 9.1% What is the 5% limit of this drop? 0% 07 8 2 6 5 6 7 9 0 1 3 4 5 20 9 0 0 9 9 9 9 0 0 0 0 0 19 20 20 19 19 19 19 20 20 20 20 20 ep -S n Ja
  60. 60. CCR among its peers Net EBITDA Dividend Net USD million - 2008 E Country Market Cap Revenues EBITDA EBIT Margin EV/EBITDA P/E Income yield Debt/EBITDA Autostrade IT 21,987 4,823 3,018 2,443 1,015 62.6% 2.5% 12.3 21.9 4.9 Abertis ES 21,437 5,700 3,678 2,562 1,179 64.5% 2.7% 11.1 18.1 4.6 Sacyr Vallehermoso ES 12,553 8,508 1,788 1,332 1,314 21.0% 1.8% 14.7 9.4 16.2 Cintra ES 9,118 1,644 1,105 734 28 67.2% 0.9% 25.0 477.1 11.8 Brisa PT 8,873 1,047 760 541 321 72.6% 2.9% 13.0 23.9 4.8 CCR BR 7,154 1,366 875 681 376 64.1% 2.5% 8.4 17.9 0.7 Macquarie Infr Group AU 6,785 1,740 1,691 1,648 1,694 97.1% 6.7% 4.6 3.9 0.7 PLUS MY 4,882 705 570 492 361 80.9% 4.8% 11.2 13.5 2.6 Jiangsu Expressway CN 4,686 769 548 433 284 71.3% 5.2% 10.8 16.5 2.0 Bangkok Expressway TH 570 249 197 123 60 79.2% 4.3% 7.1 9.5 3.4 Source: Industry Analysis 11/16/2007
  61. 61. Capital Market Average trading volume in the last 90 days R$ 29 MM Average daily trades in the last 90 days 1,024 Number of shareholders 10,500 % of the free-float held by foreign investors 59% 180,000 1000% 900% 160,000 CCRO3 739% 800% 140,000 700% 120,000 IGC 571% 600% Volume (R$ thousand) 100,000 500% 80,000 Ibovespa 390% 400% 300% 60,000 200% 40,000 100% 20,000 0% 0 -100% Feb-02 Apr-02 Jun-02 Sep-02 Nov-02 Feb-03 Apr-03 Jul-03 Sep-03 Nov-03 Feb-04 Apr-04 Jun-04 Sep-04 Nov-04 Fev-05 Abr-05 Jul-05 Sep-05 Nov-05 Feb-06 May-06 Jul-06 Sep-06 Dec-06 Feb-07 May-07 Jul-07 Sep-07 As of: 11/19/2007 Share Buyback Program (ESM to be held on 11/29/2007)
  62. 62. New Businesses
  63. 63. Regulatory Framework 1994 x 2007 – Federal Concessions 1994 2007 Legislation Federal Public Tender Law 8666 Federal Concession Law 8987 of 1995 of 1993 Federal PPP Law 11079 of 2004 DNER – responsible for managing Regulatory Agency – ANTT – June 2001 Regulatory Body the Concession Agreements. Inspections handled by state DNER branches Concession 1st Federal Concession Agreement ---- Agreement signed in 1994 First legal decisions governing annual tariff adjustments Jurisprudence No legal precedent in 1997. First Supreme Court decisions as of 2003, related to the dispute in Paraná, with consolidation of the legal precedent of annual tariff adjustments, risk of the appropriation of voting capital and expropriation Other events Privatization of CVRD – 1997 --- Privatization of Telebrás – 1998
  64. 64. NovaDutra 80% Presidente-Dutra S/A Highway Concessionaire 1,600 Start up Current Scenario 1,409 70% 1,400 68.9% 60% 1,200 1,102 53.4% 1,023 Brazilian Risk Premium (points) 50% 1,000 904 (annual average %) 873 829 815 40% 800 734 679 30% 541 600 456 29.0% 27.5% 26.0% 25.9% 25.0% 394 23.4% 23.4% 20% 400 19.2% 15.1% 19.1% 17.4% 17.3% 16.1% 16.3% 232 12.2% 13.2% 177 10% 11.7% 11.5% 200 10.1% 10.7% 9.5% 9.9% 9.8% 9.7% 7.9% 6.4% 0% - 94 07 95 96 98 99 01 02 04 05 06 97 00 03 19 20 19 19 19 19 20 20 20 20 20 19 20 20 c ep De -S l- SELIC TJLP Brazilian Risk Premium Ju n Ja
  65. 65. NovaDutra 30% Presidente-Dutra S/A Road Highway Concessionaire 3.5 Start up Amortization of loans Current Scenario 26.0% 3.1 3.0 25% Financing 23.4% 2.9 2.9 Long-term Project Finance only available from multilateral agencies at that time 2.5 20% 2.4 2.3 R$/U$ (annual average) 2.2 (annual average %) 16.1% 2.0 2.0 15% 1.8 1.8 13.2% 1.5 11.7% 11.5% 10.7% 10.1% 9.9% 9.8% 9.7% 9.5% 10% 1.2 7.9% 1.0 1.1 1.0 0.9 6.4% 0.9 5% 0.5 0% 0.0 94 07 96 97 98 99 01 03 04 05 06 95 00 02 19 20 19 19 19 19 20 20 20 20 20 19 20 20 c ep De -S l- TJLP R$/US$ Ju n Ja
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