Ubs warburg conferência ceo brasil 2003
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Ubs warburg conferência ceo brasil 2003 Ubs warburg conferência ceo brasil 2003 Presentation Transcript

  • UBS WARBURG 2003 Brazil CEO Conference
  • CCR’s Unique Characteristics • Leader in the Brazilian Toll Road Industry • Well positioned for industry consolidation • Excellent in Corporate Governance standards – tag along rights • Proven track record • Strong cash flow generation • Low capex requirements for existing concessions
  • The Brazilian Toll Road Industry • 39 Concessionaires • There is no productivity factor into industry’s contracts • Only 6% of paved Brazilian highways under concession private contracts • 2001 Rvenues market share by player •CCR – 35.2 % •2nd – 11.4 % •3th – 9.5 % •4th – 6.5 % •Others – 37.4 % • Proven Legal framework
  • New Concessions Programs Distance Program (km) 2nd phase 2,583 3rd phase 5,205 São Paulo 2,755 Total 10,543 Source: DNER Existing CCR Concessions Polão 2nd phase of the Federal Concession Program 3rd phase of the Federal Concession Program State of São Paulo Concession Program Source: ABCR - Brazilian Highway Concession Association
  • What is CCR? 100% 100% 74%1 100% 100% 100% 100%
  • Concessionaires AutoBAn - Sistema Anhangüera - Bandeirantes Limeira Main Characteristics • A major highway system of State of São Paulo, linking the capital to the most industrialized section of the state • 43% of CCR’s net revenues Campinas • Concession term 20 years, untill April 2018 • Average daily traffic 210,000 vehicle equivalent • Drivers: •GDP •Active management measures São Paulo
  • Concessionaires Nova Dutra Main Characteristics • Linking two of the most important industrial centers in the country: São Paulo and Rio de Janeiro • 34% of CCR’s net revenues • Concession term 25 years, until February 2021 • Average daily traffic 208,000 vehicle equivalent • Drivers: •Long traffic •Comercial traffic
  • Concessionaires Rodonorte Apucarana Main Characteristics • Most important toll road concession of Paraná State – used to transport agricultural Jaguariaíva exports • 15% of CCR’s net revenues • Concession term 24 years, until November 2021 • Average daily traffic 126,000 Ponta Grossa vehicle equivalent Curitiba • Drivers: •Agricultural harvest •Commercial traffic
  • Concessionaires Ponte Rio - Niterói Main Characteristics • Linking Rio de Janeiro and Niterói • 5% of CCR’s net revenues • Concession term 20 years, until May 2015 • Daily commuters represent 70% of traffic • Average daily traffic 73,000 vehicle equivalent • Drivers: •GDP
  • Concessionaires Via Lagos Main Characteristics • Linking the Lakes region, an important tourist destination in the State of Rio de Janeiro • 3% of CCR’s net revenues • Concession term 25 years, untill December 2021 • Average daily traffic 13,000 vehicle equivalent • Drivers: •Leisure travel
  • 2002 Highlights •First dividend payment: •25% pay-out ratio, R$ 0.35 per share •4.9% dividend yield •Change in accounting practice for concession fees at AutoBAn and Via Lagos •Similar to operational leases •Waiting for final decision from the CVM •Investor friendly •Hedging Policy •39% of our US$ denominated debt is now hedged •Represents 100% of principal and interest payments due through 2004 •Reestructuring has prepared the Company for growth •Created a shared service center •Developed an engineering center
  • 2002 Performance Consolidate d - (R$ thous ands ) 4Q02 4Q011 2002 20011 Gross Revenues 292,610 269,467 1,074,436 931,664 Net Revenues 270,916 253,249 1,000,337 870,295 Cost of Services Rendered (154,183) (121,284) (575,183) (468,542) Administrative Expenses (37,081) (30,464) (138,531) (100,850) EBITDA 128,456 138,343 472,242 441,242 EBIT 79,652 101,501 286,623 300,903 Net Financial Expenses 28,129 31,032 (463,585) (299,968) Net Income (Loss) 88,939 86,131 (119,526) (13,523) Notes: 1. Pro-forma, under new concession fee accounting treatment
  • Toll Revenues AutoBAn 122,831 103,098 19.1% 450,162 371,827 21.1% NovaDutra 99,061 87,949 12.6% 353,779 314,399 12.5% Rodonorte 37,932 33,521 13.2% 150,569 131,331 14.6% Ponte 15,381 13,212 16.4% 55,221 47,920 15.2% Via Lagos 7,538 6,985 7.9% 27,661 26,089 6.0% Consolidated 282,743 244,765 15.5% 1,037,392 891,566 16.4% % Total revenues 96.6% 90.8% 96.6% 95.7% Revenues by concessionarie - 2002 Via Lagos Ponte 3% 6% Rodonorte 15% AutoBAn 42% NovaDutra 34%
  • Traffic x Tariff Vehicle Equivalents (thousands) 4Q02 4Q01 var. % 2002 2001 var. % AutoBAn 20,218 18,147 11.4% 76,704 69,189 10.9% NovaDutra 20,253 19,411 4.3% 75,873 72,280 5.0% Rodonorte 11,493 10,806 6.4% 45,992 43,418 5.9% Ponte 6,991 6,603 5.9% 26,789 25,519 5.0% Via Lagos 1,201 1,135 5.8% 4,553 4,604 -1.1% Consolidado CAGR (98-02): 60,157 10,6% 56,102 7.2% 229,912 215,009 6.9% Tariff (R$) 4Q02 4Q01 var. % 2002 2001 var. % AutoBAn 6.08 5.68 7.0% 5.87 5.37 9.2% NovaDutra 4.89 4.53 7.9% 4.66 4.35 7.2% Rodonorte 3.30 3.10 6.5% 3.27 3.02 8.2% Ponte 2.20 2.00 10.0% 2.06 1.88 9.8% Via Lagos 6.28 6.15 2.1% 6.07 5.67 7.2% Consolidated 4.70 4.36 7.8% 4.51 4.15 8.8%
  • Capex Requirements 527 (R$ million) 318 263 148 2.001 2.002 2003 (E) 2004 (E) AutoBAn NovaDutra Rodonorte Ponte Via Lagos Note: 2003(E) and 2004(E) figures based on inflation assumptions of 14% and 8%, respectively.
  • Sources of Funding Currency breakdown, as of Dec/02 Debentures Others US$ - 51.6% (IGP-M) (CDI, TJLP) R$ - 48.4% 8,2% 3,4% Total debt - 1,508,5 million Debentures (CDI) 2,2% Average spreads: IDB e IFC (Libor) BNDES – TJLP + 5% p.a. 50,0% IDB / IFC – Libor (6m) + 4.5% p.a. BNDES (TJLP) 36% Adequate debt structure: Low cost and long term
  • Debt repayment quarterly schedule – R$ million 120 SWAP COVERAGE – 2003 AND 2004 100 80 60 40 20 0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 % pa 19.3% 16.8% 13.2% 12.5% 10.4% 10.1% 6.8% 6.7% 3.6% 0.5% % acum. 19.3% 36.1% 49.3% 61.8% 72.2% 82.3% 89.1% 95.8% 99.5% 100.0%
  • Corporate Governance • Listed on the Novo Mercado •Only one type of share: common shares with voting rights •Shareholders have Board representation •Tag-along rights • Any Board member may request an independent appraisal for any related party transaction •Veto right for 25% of votes, three Board members • Dividend Policy: maximum pay-out after business plan needs are met • Management benefits based on EVA • Committed to Novo Mercado Arbitrage chamber • Non competion clause with controlling shareholders
  • Growth Strategy - Existing Concessions Operational level • Toll collection improvement •Repositioning toll plazas •Bi-directional collection • Cost officiencies coming from reetructuring undertaken in 2002 •Centralize administrative functions •Leverage economies of scale Electronic Toll Collection • CCR views this as a strategic business, focused on: •Minimizing the time it takes to stop and pay tolls •Improving traffic conditions
  • Growth Strategy Acquisition • Sinergies with actual CCR concessionaries • Opportunities to merge operations • Seeks for controlling position New Concessions • Decision making factors: •Funding basic structure •60% debt at the operating company level •20% cash from the concession itself •20% equity from CCR •IRR attractiveness standards: •18%~20% p.a. Unleverage •25% p.a. leverage •Immediately add value on an NPV basis
  • CCR vs. Internationally Listed Toll Roads 2002 Net (€ millions) Mkt Cap1 Prc/Sales Prc/Book Prc/EBITDA EV/EBITDA Revenues CCR 199 270 0.6 1.7 1.3 4.2 Acesa 4,198 762 4.8 1.8 7.9 14.6 AUREA 1,901 321 5.9 1.8 8.5 11.7 Autostrade 13,805 2,345 5.8 5.1 10.2 11.5 Brisa 2,818 487 5.7 2.1 7.3 13.4 Auto To-Mi 854 235 3.6 1.8 6.1 8.7 Autoroute de Sur 5,775 1,930 2.7 - - 12.2 Source: Bloomberg Note: 1. Pro-forma, under new concession fee accounting treatment