Forward Looking Statement
This presentation contains certain statements that are neither reported financial results or oth...
Schedule

09:00 a m – Results of 3Q08
      a.m.

09:30 a.m. – Current Portfolio

10:30 a.m. – Financial aspects of the cu...
Results of 3Q08
Operating Highlights
• Traffic grew by 9.4% in the 3Q08, and 8.8% in the 9M08.


• Net revenue reached R$ 744.1 million (+...
Corporate Highlights
•   On September 30, 2008, CCR paid dividends of R$ 1.00 per share, totaling
    R$ 403.1 million.


...
Results
R$ Million
            g g
Financial Highlights                        3Q07
                                      ...
Net Financial Result

Net Financial Result (R$ MM)                    3Q07     3Q08      Chg %    9M07      9M08      Chg ...
Business Dynamics
                                                                                                        ...
Business Dynamics
                         EBITDA (R$ million)
                                                           ...
Revenues

          Concession Breakdown             Revenues B kd
                                           R        Bre...
Toll Payment Method




            57%
                          52%
                                        50%
        ...
Traffic (Vehicle Equivalents - million)
                             Quarterly Evolution
                                 ...
Net Revenue & Total Costs
                                                                                                ...
Indebtedness

                                Gross Debt                                                                  ...
Indebtedness

                Debt Breakdown                                                       Debt Amortization
     ...
CAPEX Schedule 2008 - 2009

 CAPEX (R$ MM)                     1Q08                 2Q08                   3Q08    2008(E)...
Current Portfolio
Development...
      p


       Capital Discipline...



                      Commitment to results.
2007 Scenario

NovaDutra                                                                                                  ...
2007 Scenario
Blue Ocean Strategy

Avoid predatory Red Ocean competition
strengthening innovative Blue Ocean operation

   Differentiate...
Blue Ocean Strategy

Avoid predatory Red Ocean competition
strengthening innovative Blue Ocean operation

   Differentiate...
Brazil s
        Brazil's largest road concession operator
                          Toll Revenues
Concessionaires        ...
The most recent achievement of the Group: the West segment of the ring road




                                          ...
Unique Business Management

AutoBAn

• Anhanguera Complex 2nd Phase (R$ 340 million)



NovaDutra

• Marginais RJ / SJC / ...
Anhangüera Project – 1st and 2nd Phases
Anhangüera Project – Current Phase
Marginais Rio de Janeiro
Unique Business Management

ViaOeste
• Cebolão Project                     (R$ 235 million)
• Jandira / Itapevi Interchang...
Cebolão Project
Jandira Interchange
Unique Business Management


Increased value of current agreements


• P j t to reduce escape routes
  Projects t d       ...
Unique Business Management

Ring Road (West Segment)
         • Conclusion of initial works
         • Beggining of toll o...
Rodoanel – Toll Plazas
Unique Business Management
      q                g
         1st Phase                                    2nd Phase       ...
Unique Business Management
   q                g

STP – Serviços e Tecnologia de Pagamento
•   User Base Growth           ...
Unique Business Management
         q                g

     STP – Serviços e Tecnologia de Pagamento
        % Revenue (A...
Traffic
Historic Perfomance of Tolled Vehicles
                                                                                   ...
Traffic Historic Performance

16.0%                                                                                60.0%

...
2008 Traffic Performance
   008 a c e o a ce

12%
                                                                        ...
Traffic Performance

              Index ABCRsp x Index CCR – Tolled Vehicles
                            Dec 2004=100
140...
Traffic Performance

             Index ABCRbr x Index CCR - Tolled Vehicles
                             Dec 2004=100
   ...
Traffic Performance

                   Index ABCRpr x Index CCR – Tolled Vehicles
                                 Dec 20...
Motorization Index – Historical Evolution

                            Inhabitants per vehicle - Brazil
      9.4
        ...
Motorization Index – Global View
                                                                                         ...
Automobile fleet expansion potential

                            Domestic sales
                                         ...
CCR System Traffic Growth
 CCR Consolidated - Historical Evolution & Elasticity
                    Comparison between gro...
Conclusions

• Characteristics of our highways minimize impacts from sector crises
                                       ...
Results
Overview: CCR Group Concessions
                  p

Business Unit    EBITDA Margin (%)   Remaining Term (Year)
AutoBAn
A ...
Historic EBITDA Margin
                     g

70.0%




60.0%                                             AutoBAn
       ...
Services
CCR            (Average Monthly Service)
•   Electric / Mechanical assistance       –   294,000 calls/year
•   Lack of fue...
Development...
      p


       Capital Discipline...



                      Commitment to results.
Financial Aspects of the Current Portfolio
Financial Aspects of the Current Portfolio


•   CCR Group Financial Policy


•   Risk Management


•   Current Indebtedne...
CCR Group Financial Policy

•   Hedge
       g


•   Cash Management


•   Leverage


•   Dividends
Hedge Policy

Approved by the Board of Directors’ Meeting of October 27, 2005:


“foreign currency hedge p
      g        ...
Foreign Exchange Exposure of the CCR Group – 09/08

• Ponte – USD 25 million with swap to 109.70% of the CDI rate


• Lago...
Cash Management

   CCR        C1       C2        C3        C4    C5
                                                  ......
Cash Management
                                                                        Date: 10/27/2008

                ...
Leverage
                                                                       2,338




       1,322
                   ...
Dividends

                                                      91%    86%
                                              ...
Risk Management

Advisory Services Hired
PWC – Market Risk Management
    objective – to provide CCR with tools to evaluat...
Risk Management
      Project Analysis Approach                                              Impact on portfolio
         ...
Risk Management
Risk Management

CVM Resolution no. 550

• Note 24 to the Financial Statements, Quarterly Information (ITR)/September
  20...
Indebtedness

• Note 17 to the Financial Statements, ITR/Sep08 - Financials - Loans,
                                     ...
Indebtedness – Amortization Schedule
R$ million
                                                                          ...
Ccr day 4 presentation
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Ccr day 4 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. Schedule 09:00 a m – Results of 3Q08 a.m. 09:30 a.m. – Current Portfolio 10:30 a.m. – Financial aspects of the current portfolio 11:00 a.m. – Coffee Break 11:30 a m – Perspectives of CCR a.m. 12:00 a.m. – Questions and Answers 12:30 a.m. – Luncheon
  3. 3. Results of 3Q08
  4. 4. Operating Highlights • Traffic grew by 9.4% in the 3Q08, and 8.8% in the 9M08. • Net revenue reached R$ 744.1 million (+20.5%) in the third quarter, and R$ 1,999.8 million (+16.3%) in the 9M08. ( 16.3%) • Net Income totaled R$ 219.6 million in the 3Q08 (+22.7%) up on the same period last year, and R$ 524.8 million (+17.3%) in the 9M08. • 35 8% increase in AVI users in the year compared to Sep/07 totaling 35.8% year, Sep/07, 1,158,000. Note: All comparisons refer to the 3Q07 and 9M07.
  5. 5. Corporate Highlights • On September 30, 2008, CCR paid dividends of R$ 1.00 per share, totaling R$ 403.1 million. • SAP implementation; • Professional Development Program; • Improvement of the CCR Group Corporate Management.
  6. 6. Results R$ Million g g Financial Highlights 3Q07 Q 3Q08 Q Chg % g 9M07 9M08 Chg % g Net Revenue 617.6 744.1 20.5% 1,719.2 1,999.8 16.3% Total Costs (1) (287.2) (356.0) 24.0% (886.4) (1,010.2) 14.0% EBIT 330.4 388.0 17.4% 832.8 989.5 18.8% EBIT Margin 53.5% 52.1% -1.4 p.p. 48.4% 49.5% +1.1 p.p. Depreciation and Amortization (2) 80.3 93.9 16.9% 244.9 268.1 9.5% EBITDA 410.7 482.0 17.4% 1,077.7 1,257.7 16.7% EBITDA Margin 66.5% 64.8% -1.7 p.p. 62.7% 62.9% +0.2 p.p. Net Financial Result (66.4) (66 4) (47.5) (47 5) -28.6% -28 6% (154.7) (154 7) (172.6) (172 6) 11.6% 11 6% Income and Social Contribution Taxes (82.9) (118.0) 42.3% (222.3) (285.8) 28.6% Net Income 179.0 219.6 22.7% 447.6 524.8 17.2% (1) Total Costs + Administrative Expenses (2) Includes prepaid expenses
  7. 7. Net Financial Result Net Financial Result (R$ MM) 3Q07 3Q08 Chg % 9M07 9M08 Chg % Net Financial Result (66.4) (47.5) -28.6% (154.7) (172.6) 11.6% Financial Expenses: (87.1) (101.4) 16.5% (214.9) (301.9) 40.5% - Exchange Rate Variation 6.3 (20.4) n.m. 10.4 (33.3) n.m. - Losses from Swap Operation (Passive Curve) (8.8) (6.5) -26.2% (14.3) (30.4) 113.5% - Monetary Variation (19.3) (19 3) (14.7) (14 7) -27.8% -27 8% (25.3) (25 3) (68.4) (68 4) 170.4% 170 4% - Interest on Short-term and Long-term Debt (48.9) (51.9) 6.0% (145.2) (148.7) 2.4% - Other Financial Expenses (16.4) (7.9) -51.5% (40.6) (21.1) -47.9% Financial Income 20.7 54.0 161.1% 60.2 129.3 114.7% Gains from Swap Operation (Active Curve) 1.9 22.3 n.m. 1.9 36.0 n.m. Other Financial I Oth Fi i l Income 18.8 18 8 31.7 31 7 68.5% 68 5% 58.3 58 3 93.3 93 3 60.0% 60 0%
  8. 8. Business Dynamics 482 EBITDA (R$ million) x EBITDA Margin 411 401 377 374 341 322 323 326 310 309 299 259 263 218 224 216 67% 65% 65% 62% 60% 59% 58% 59% 59% 59% 56% 57% 55% 55% 54% 55% 51% 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
  9. 9. Business Dynamics EBITDA (R$ million) 482 411 322 310 67% 216 60% 59% 59% 55% 3Q04 3Q05 3Q06 3Q07 3Q08
  10. 10. Revenues Concession Breakdown Revenues B kd R Breakdown – 3Q08 Renovias Other STP 2.0% Other 2.4% 3% 2% ViaOeste 17% AutoBAn ViaLagos 38% 1% P t Ponte 3% RodoNorte 10% 96,2% 95.6% Toll T ll NovaDutra 26%
  11. 11. Toll Payment Method 57% 52% 50% 46% Cash Electronic 54% 417M 50% 21M 273M M 48% 32 232M 43% 3Q05 3Q06 3Q07 3Q08
  12. 12. Traffic (Vehicle Equivalents - million) Quarterly Evolution 156 130 143 133 3Q05 3Q06 3Q07 3Q08 3Q08 x 3Q07 – Concession Breakdown 9.1% 7.2% 6.5% 5.8% % 4.9% 4.0% -0.3% AutoBAn NovaDutra RodoNorte Ponte ViaLagos ViaOeste Renovias
  13. 13. Net Revenue & Total Costs 744 618 550 519 356 Net Revenue 315 12% 347 290 287 Other 15% 15% 17% 16% 13% 13% 17% million) 16% 13% Payroll 12% 13% 16% 15% 12% 16% 15% 21% R$ (m 23% 21% 16% Concession Fee 16% 28% 23% 28% 56% 57% 48% 46% 24% 28% 22% 24% 28% Third-Party 22% 27% 28% 28% 27% 27% 27% 27% 27% D&A 3Q05 3Q06 3Q07 3Q08 Other: insurance, rent marketing travel electronic payment and conservation and material for conservation and maintenance insurance rent, marketing, travel, maintenance. Third-Party Services: auditing, consulting, shared services and routine maintenance.
  14. 14. Indebtedness Gross Debt Net Debt 2,914 2,338 1,932 93% 1,774 , 1,467 1 467 100% 1,276 1,278 1 278 1.43 1,214 100% R$ (million) R$ (million) 1.20 81% 1.07 0.91 3Q05 3Q06 3Q07 3Q08 3T05 3T06 3T07 3T08 Short Term Long Term In R$ Net Debt Net Debt / EBITDA The increase in short-term debt is the result of bridge loans, which will be refinanced by long-term credits.
  15. 15. Indebtedness Debt Breakdown Debt Amortization BNDES TJLP + (4.5% - 5.0%) Others Debentures 796 7% 7% 772 104.5% - 107.3% CDI 7% IGP-M + 7.6%-11% 464 24% 27% 24% 28%28% 28% 28% 330 Foreign 7% 7% 201 Currency 34% 34% 200 144 114 34% 94 Debentures 4Q08 2009 2010 2011 2012 2013 2014 2015 103.3% - 105% CDI
  16. 16. CAPEX Schedule 2008 - 2009 CAPEX (R$ MM) 1Q08 2Q08 3Q08 2008(E) 2009 (E) AutoBAn 34.3 61.3 38.8 199.1 149.8 3 NovaDutra 29.4 37.6 41.4 155.6 56.0 ViaOeste 13.6 9.6 16.3 103.2 4.2 RodoNorte 8.2 14.9 19.6 90.7 74.8 3 Ponte 3.0 3.2 2.8 14.5 3.5 3 ViaLagos 0.1 0.2 1.8 5.3 0.5 ViaQuatro 12.9 0.0 23.9 185.6 252.7 1 Renovias 0.9 09 4.3 43 96.8 96 8 80.2 80 2 RodoAnel 2.2 31.3 49.0 36.1 2 Other 1.7 (1.6) 0.3 10.9 8.7 Consolidated 103.2 128.3 180.5 910.7 666.5 1-E t Erratum: inclusion of R$ 876 000 in Renovias in th 2Q08 i l i f 876,000 i R i i the 2Q08. 2 - Includes CCR, CCR México, CCR USA, Actua, Engelog, Parques and STP 3 - The 2008 estimates for NovaDutra, Ponte and ViaLagos have been revised. The amounts estimated for 2008 and 2009 in the RodoNorte, ViaQuatro, Renovias and RodoAnel concessionaires are equivalent to 100% of the project.
  17. 17. Current Portfolio
  18. 18. Development... p Capital Discipline... Commitment to results.
  19. 19. 2007 Scenario NovaDutra NovaDutra 80% Concessionária da Rodovia Presidente-Dutra S/A 1.600 Concessionária da Rodovia Presidente-Dutra S/A 30% 3,5 Início Amortização dos financiamentos 1.409 Início 26,0% Cenário Atual Cenário Atual 70% 1.400 Financiamento 3,1 3,0 68,9% 25% 23,4% Multilaterais eram os únicos 2,9 2,9 financiadores de longo-prazo e 60% 1.200 na modalidade Project Finance 1.102 existentes na época 2,5 53,4% 1.023 20% 2,4 2,3 50% 1.000 Risco Brasil (pontos) 904 2,2 R$/U$ (méd anual) 873 (% média anual) 2,0 (% média anual) 16,1% 829 815 2,0 dia a a 40% 800 15% 1,8 734 1,8 13,2% 679 1,5 11,7% 11,5% 30% 600 10,7% 541 10,1% 9,9% 9,8% 9,7% 29,0% 9,5% 10% 27,5% 456 26,0% 25,9% 1,2 25,0% 7,9% 1,0 394 1,1 23,4% 23,4% 1,0 20% 400 0,9 6,4% 19,2% 19,1% 0,9 17,4% 17,3% 16,1% 16,3% 232 15,1% 5% 13,2% 177 0,5 10% 11,7% 11,5% 12,2% 200 10,1% 10,7% 9,5% 9,9% 9,8% 9,7% 7,9% 6,4% 0% - 0% 0,0 07 94 95 96 97 98 99 00 01 02 03 04 05 06 94 07 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 19 20 19 19 19 19 19 20 20 20 20 20 20 20 et z et ez e -s l-d -s l-d SELIC TJLP Risco Brasil TJLP R$/US$ ju n ju n ja ja 80 81
  20. 20. 2007 Scenario
  21. 21. Blue Ocean Strategy Avoid predatory Red Ocean competition strengthening innovative Blue Ocean operation Differentiated Approach to Business Management; Diff i dA h B i M Audacity in winning strategic businesses; New Markets; New Businesses.
  22. 22. Blue Ocean Strategy Avoid predatory Red Ocean competition strengthening innovative Blue Ocean operation Differentiated Approach to Business Management; Diff i dA h B i M Audacity in winning strategic businesses; New Markets; New Businesses.
  23. 23. Brazil s Brazil's largest road concession operator Toll Revenues Concessionaires 3Q05 AutoBAn - 317 km (April / 2028) 40% NovaDutra - 402 km (Feb / 2021) 26% ViaOeste - 162 km (April / 2023) 17% RodoNorte - 488 km (Dec / 2021) Sorocaba Ponte - 23 km 11% (May / 2015) ViaLagos - Vi L 60 k km (Nov / 2021) 4% RodoAnel – 32 km ( y (May / 2038) ) 2% TOTAL – 1,484 km* * CCR also owns 40% of Renovias (345.6 km) and 10% of the Northwest Parkway – USA (18 km)
  24. 24. The most recent achievement of the Group: the West segment of the ring road CAPTION Ring Road – West Segment Ring Road Project CCR Concessionaires Four-lane Highway Highway Police SOS Usuário
  25. 25. Unique Business Management AutoBAn • Anhanguera Complex 2nd Phase (R$ 340 million) NovaDutra • Marginais RJ / SJC / SP • Serra das Araras (R$ 753 million) • Safety works • Other improvements (R$ 475 million)
  26. 26. Anhangüera Project – 1st and 2nd Phases
  27. 27. Anhangüera Project – Current Phase
  28. 28. Marginais Rio de Janeiro
  29. 29. Unique Business Management ViaOeste • Cebolão Project (R$ 235 million) • Jandira / Itapevi Interchange • Tolls adjustment • Bidirectional tolls Ponte • Improvements in Access to Niterói (R$ 150 million) • Improvements in Access to Rio
  30. 30. Cebolão Project
  31. 31. Jandira Interchange
  32. 32. Unique Business Management Increased value of current agreements • P j t to reduce escape routes Projects t d t • Expansion of the tolled base • Demand for new investments vs. Adjusments to agreements • Debt refinancing (Releverages)
  33. 33. Unique Business Management Ring Road (West Segment) • Conclusion of initial works • Beggining of toll operations (Dec/08) Bandeirantes – Rodoanel Interchange Anhanguera – Rodoanel Interchange
  34. 34. Rodoanel – Toll Plazas
  35. 35. Unique Business Management q g 1st Phase 2nd Phase 3rd Phase Feb/10 Sep/09 Jul/09 ViaQuatro Oct/08 Operational Tests Commercial Operation May/08 Trains and Long-term Equipment Nov/07 financing Aug/07 S.O. Construction Nov/06 S.O. Project May/06 Contract - Supply Contract Signing Bid Organizational Development and Contract Management
  36. 36. Unique Business Management q g STP – Serviços e Tecnologia de Pagamento • User Base Growth (1,158,307 in Sep/08) • Agreements with 35 Concessionaries (82% of the tolls) • Operating in 22 parking l t O ti i ki lots (SP RJ and PR) (SP, d • 240 million transactions per month Percentages of Revenues 57% 52% 50% 46% Cash 40.2 % Other Electronic 54% 59.7 % 417M Meios 50% Eletrônicos 21M 48% 32 273M M 232M 43% 3Q05 3Q06 3Q07 3Q08
  37. 37. Unique Business Management q g STP – Serviços e Tecnologia de Pagamento % Revenue (AVI) Users (thousand) UN's 9M08 VIAOESTE 55.6% 55 6% AUTOBAN 58.7% 1,400 RENOVIAS 49.8% 1158 1,200 NOVADUTRA 55.0% 909 27% 1,000 RODONORTE 31.7% 740 23% 800 PONTE SA 39.4% 550 35% 600 VIALAGOS 28.9% 406 36% 286 400 194 42% 87 47% 200 122% 0 2001 2002 2003 2004 2005 2006 2007 2008 * Information up to the 9M08. users growth
  38. 38. Traffic
  39. 39. Historic Perfomance of Tolled Vehicles RodoAnel Operational Startup Dec./08 60 Bidirecional Bidirecional vehicles commercial vehicles AutoBan Renovias - AutoBAn Jul./04 nd phase Jun./01 Acquisition 2 j jun./08 50 Bidirectional commercial vehicles Million - AutoBAn 1st phase Feb./01 Startup Jacareí NovaDutra 40 Aug./01 30 Bidirectional Araçoiaba da ViaOeste Acquisition Serra ViaOeste Mar./05 Fev./06 20 May/00 May/01 May/02 May/03 May/04 May/05 May/06 May/07 May/08 Sep/00 Sep/01 Sep/02 Sep/03 Sep/04 Sep/05 Sep/06 Sep/07 Sep/08 Jan/00 Jan/01 Jan/02 Jan/03 Jan/04 Jan/05 Jan/06 Jan/07 Jan/08
  40. 40. Traffic Historic Performance 16.0% 60.0% 14.0% 50.0% 12.0% 40.0% 40 0% 10.0% 8.0% 30.0% 6.0% 6 0% 20.0% 4.0% 10.0% 2.0% 2 0% 0.0% 0.0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 Jan to Sep 2008 Annual fees Accumulated
  41. 41. 2008 Traffic Performance 008 a c e o a ce 12% 11.1% 11 1% 10% 9.9% 9.0% 8.2% 8% 8.3% 8 3% 7.8% 6% 5.3% 4.5% 4% 2.7% 2% 0% Jan Feb Mar Apr May Jun Jul Aug Sep 2008/2007
  42. 42. Traffic Performance Index ABCRsp x Index CCR – Tolled Vehicles Dec 2004=100 140 120 100 80 ABCRsp AutoBAn ViaOeste Renovias
  43. 43. Traffic Performance Index ABCRbr x Index CCR - Tolled Vehicles Dec 2004=100 D 2004 100 125 115 105 95 85 ABCR Brazil NovaDutra
  44. 44. Traffic Performance Index ABCRpr x Index CCR – Tolled Vehicles Dec 2004=100 125 115 105 95 85 Oct/07 Nov/07 Dec/07 Jan/08 Feb/08 Mar/08 Apr/08 May/08 Jun/08 Jul/08 Aug/08 Sep/08 ABCRpr RodoNorte
  45. 45. Motorization Index – Historical Evolution Inhabitants per vehicle - Brazil 9.4 9.1 9.0 8.9 8.8 88 8.6 8.4 8.4 8.2 8.0 7.9 7.2 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: Anfavea Higher credit offering for the automobile industry
  46. 46. Motorization Index – Global View 9.1 Inhabitants per vehicle 7.9 79 7.4 1997 5.7 5.2 52 2006 4.7 4.3 3.1 1.8 1.7 1.5 1.7 1.5 1.7 1.7 1.7 1.3 1.2 South Italy Australia USA France Canada Mexico Argentina Brazil Korea Source: Anfavea If the same trend observed in other countries reflects in Brazil, h d b di h i fl i B il traffic x GDP elasticity ratio can increase significantly
  47. 47. Automobile fleet expansion potential Domestic sales 1,945 1,565 1,428 1,423 1,299 1,363 1 363 1,264 1,245 1,154 1,166 1,032 956 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: Ipeadata The number of potential clients are showing expansion
  48. 48. CCR System Traffic Growth CCR Consolidated - Historical Evolution & Elasticity Comparison between growth in GDP and Traffic 4Q99 = BASE 100 160 150 Annual VEQ CCR GDP 140 (1) 2000 4.3% 1.8% 130 2001 1.3% 10.2% 120 2002 2.7% 7.8% 2003 1.2% 0.4% 110 2004 5.7% 7.0% 2005 2.9% 2.9% 100 2006 3.8% 2.3% 2007 5.4% 6.2% 90 2008 (2) 6.0% 6 0% 8.0% 80 Accumulated 38.4% 56.9% Elasticity 1.5 4Q04 2Q05 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q99 2Q00 4Q00 2Q01 4Q01 2Q02 4Q02 2Q03 4Q03 2Q04 (1) IBGE – New Methodology (2) Jan-Jul GDP TRAFFIC EQUIVALENT VEHICLES
  49. 49. Conclusions • Characteristics of our highways minimize impacts from sector crises crises. • Historical traffic elasticity is 1.5x Brazil GDP. • Favorable path in the motorization index could have a strong impact on traffic indicators. • Main driver of the recent acceleration in traffic growth is the stronger economic growth in the regions where our toll roads are located.
  50. 50. Results
  51. 51. Overview: CCR Group Concessions p Business Unit EBITDA Margin (%) Remaining Term (Year) AutoBAn A t BA 69.9% 69 9% 18.2 18 2 NovaDutra 59.2% 12.4 ViaOeste 70.5% 14.3 Ponte 48.7% 6.5 ViaLagos 55.3% 13.2 RodoNorte 62.9% 13.1 ViaQuatro 66.1% 30 RodoAnel R d A l 79.0% 79 0% 29.6 29 6 Renovias 65.2% 13.6
  52. 52. Historic EBITDA Margin g 70.0% 60.0% AutoBAn NovaDutra RodoNorte Ponte ViaLagos ViaOeste 50.0% CCR 40.0% 2003 2004 2005 2006 2007 2008
  53. 53. Services
  54. 54. CCR (Average Monthly Service) • Electric / Mechanical assistance – 294,000 calls/year • Lack of fuel and changing tires – 108,000 108 000 calls/year • Yearly access to website - 2.8 million accesses • Prehospital care – 40,000 calls/year • 27% accident and 54% death reduction
  55. 55. Development... p Capital Discipline... Commitment to results.
  56. 56. Financial Aspects of the Current Portfolio
  57. 57. Financial Aspects of the Current Portfolio • CCR Group Financial Policy • Risk Management • Current Indebtedness
  58. 58. CCR Group Financial Policy • Hedge g • Cash Management • Leverage • Dividends
  59. 59. Hedge Policy Approved by the Board of Directors’ Meeting of October 27, 2005: “foreign currency hedge p g y g policy with 1-year maturity, combined with a periodic y y y, p scenario inspections and simulations of risk exposure and impact on the Company’s expected results” • To be revised in light of market conditions.
  60. 60. Foreign Exchange Exposure of the CCR Group – 09/08 • Ponte – USD 25 million with swap to 109.70% of the CDI rate • Lagos – JPY 4 billion with swap to 103.20% of the CDI rate • Line 4 – USD 28 million with swap to 125% of the CDI rate • CCR USA – USD 27 million with no swap (the hedge is the stake in Northwest Parway)
  61. 61. Cash Management CCR C1 C2 C3 C4 C5 ....... FIQ Exc. CCR FIM Exc. CCR ....... Government BDC BDC BDC Bonds Bank A Bank B Bank C
  62. 62. Cash Management Date: 10/27/2008 Company Balance (R$ ‘000) Actua Assessoria 826 Actua Serviços 1,750 Autoban 96,174 CCR 197,310 Engelog 3,473 NovaDutra 40,704 Ponte 5,895 Rodonorte 33,862 ViaOeste 107,504 ViaLagos 1,916 1 916 ViaQuatro 8,106 Rodoanel 140,729 Total 638,251 638 251 The RodoNorte and Via Quatro amounts correspond to 100% of the project.
  63. 63. Leverage 2,338 1,322 1,227 1,127 1,161 1,139 2.8 1.97 622 1.43 1.05 0.94 0.84 0.82 2002 2003 2004 2005 2006 2007 9M08 The maximum leverage permitted by our current financial policy is a net debt-to-EBITDA ratio of 3.0x, which enables us to seek new opportunities with capital discipline.
  64. 64. Dividends 91% 86% 65% 60% 57% 16% 2003 2004 2005 2006 2007 2008E Note: Cash basis We reiterate our commitment to the market of distributing at least 50% of annual net income in 6 monthly installments income, installments.
  65. 65. Risk Management Advisory Services Hired PWC – Market Risk Management objective – to provide CCR with tools to evaluate and manage business risks through the @risk methodology, which allows the simulation of methodology impacts based on historical correlations and stress scenarios; RiskOffice – specialized in measuring risks and suggesting protection alternatives objective – to make Management comfortable by creating “risk committees” to permanently evaluate scenarios, confirm the effectiveness of the hedge operations adopted and suggest any necessary adjustments. dj t t
  66. 66. Risk Management Project Analysis Approach Impact on portfolio (P) Current portfolio Concessions Probability assumptions - traffic, operating costs, investments, interest and inflation rate R$ (mi) Scenarios (P) + New project Ke HR Average IRR (P) R$ ( ) $ (mi) = (P) Current portfolio IRR (NPV, Ebitda) Projected portfolio Cash flow to the holding (divid.) R$ (mi) Project risk evaluation based on probabilities for: – IRR Evaluation of risks in the portfolio – Coverage of interest and principal – Coverage of interest and principal – Coverage of investments – Coverage of shareholder dividends – Coverage of projected dividends – Availability of sufficient capital for future investments
  67. 67. Risk Management
  68. 68. Risk Management CVM Resolution no. 550 • Note 24 to the Financial Statements, Quarterly Information (ITR)/September 2008 – Financial Instruments
  69. 69. Indebtedness • Note 17 to the Financial Statements, ITR/Sep08 - Financials - Loans, , p , Financing and Debentures Amount, Currency, Index, Maturity, Covenants, Financer.
  70. 70. Indebtedness – Amortization Schedule R$ million Net Debt / EBITDA AutoBAn Type T Index I d Balance Sep/08 4Q08 B l S /08 2009 2010 2011 2012 2013 2014 1.8 BNDES TJLP + 11% 101 16 23 30 30 33 1.1 1.1 1.3 Debentures IGPM + 10.65% 242 25 49 49 49 49 20 1.0 1.0 Debentures 103.3% CDI 314 45 108 108 54 Total 657 16 92 187 187 106 49 20 Average Cost of Debt 15.5% p.a. 03 04 05 06 07 08E NovaDutra 1.3 Type Index Balance Sep/08 4Q08 2009 2010 2011 1.2 BNDES TJLP + 9% - 10 5% 10.5% 8 3 3 1 1 0.8 0.7 07 Debentures IGPM + 9.5% 110 6 92 12 0.3 0.1 Total 118 9 95 12 1 Average Cost of Debt 17.9% p.a. 03 04 05 06 07 08E ViaOeste Type Index Balance Sep/08 4Q08 2009 2010 2011 2012 2013 2014 2015 2.4 1 1 1.9 Finame TJLP + 9% a 10.3% 2 0 0 0 1.5 Debentures CDI 270 9 35 39 37 37 37 37 38 Debentures IGPM + 7.6% 7 6% 424 24 54 60 57 57 57 57 57 0.5 Total 696 33 90 100 95 94 94 94 95 Average Cost of Debt 15.3% p.a. 05 06 07 08E
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