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2 conference call 3 q09

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  • 1. Conference Call 3Q09 Earnings Results November 13th, 20091
  • 2. Notice This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of OHL Brasil, these are merely projections and, as such, are based exclusively on the , y p j , , y expectations of OHL Brasil’s management concerning the future of the business and its continued access to capital to fund the Company’s business plan. Such forward looking statements depend substantially on changes in market conditions forward-looking depend, substantially, conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry and are, therefore, subject to change without prior notice.2
  • 3. Traffic Performance and Average Toll Tariff – State Concessions Traffic Performance (in ‘000 equiv.-vehicle) Average Toll Tariff (R$) -1.7% +7.5% 37,713 37,084 34,501 7,821 7,580 +3.6% 7,031 Evolução Tarifa Média (R$) +3.2% 13,882 13.751 12,691 5,881 5,482 5,829 6.07 5.86 5.88 10,129 9,298 , , 9,923 3Q08 2Q09 3Q09 3Q08 2Q09 3Q09 Autovias Centrovias Intervias Vianorte Tariff Adjustment of 3.64% in July 01, 2009 based on the accumulated variation of the IGP-M from June/2008 to May/2009.3
  • 4. Toll Plazas – Federal Concessions Operating Toll Plazas: Opening - Opening - Opening - Opening - Opening - Opening - Opening - Toll Plazas - Total TollConcessionaire Dec/2008 Jan/2009 Feb/2009 Mar/2009 May/2009 June/2009 Aug/2009 Operating Plazas Planalto Sul 1 1 3 5 5 Fluminense 3 1 1 5 5 Fernão Dias 2 1 1 3 7 8 Régis Bittencourt 2 1 2 1 6 6 Litoral Sul 2 1 2 5 5Total 5 2 10 5 3 2 1 28 29 - Tariff Adjustment Opening Estimation: Autopista Fernão Dias (P1) – 2Q104
  • 5. Traffic and Tariff – Federal Concessions Toll-Paying Traffic – Federal Concessions 3Q09: Var% Equivalent-Vehicles 3Q09 2Q09 3Q09/2Q09 Planalto Sul 6,265,555 5,959,259 5.1% Fluminense 8,311,200 5,774,000 43.9% Fernão Dias 25,123,637 23,039,090 9.0% Régis Bittencourt 31,927,999 25,308,667 26.2% Litoral Sul 23,629,091 14,053,636 68.1% Total - Federal Concessions: 95,257,482 74,134,652 28.5% The toll tariffs offered in the federal auctions in October/07 were adjusted by the variation of the IPCA j y from June 2007 to the month prior to the initiation of the toll charge at the first toll plaza in each concessionaire: Average Toll Tariff Var% 3Q09 2Q09 (in R$/Equiv-Vehicles) 3Q09/2Q09 Planalto Sul 2.70 2.70 0.0% Fluminense 2.50 2.50 0.0% Fernão Dias 1.10 1.10 0.0% Régis Bittencourt 1.50 1.50 0.0% Litoral Sul 1.10 1.10 0.0% Average - Federal Concessions: 1.46 1.47 -0.7%5
  • 6. Potential Net Revenue – Federal Concessions Net Revenue Performed and Potential (R$ million) 127.6 127.5 119.0 134.5 126.8 117.5 121.1 100.2 47.8 1Q09 2Q09 3Q09 4Q09 (Revised) Potential 29 Toll Plazas Performed Estimated In 3Q09, plaza 4 of Autopista Fluminense started operating (last toll plaza of this concession to become operational). Together with the 27 plazas already in operation in 2Q09, 3Q09 ended with 28 operational plazas; In 3Q09, the partial toll collection in our federal concessions, was slightly higher than the guidance projected by the Company in the beginning of the year, totaling R$ 127.6 net revenue; We have revised our net revenue guidance for 4Q09 due to (i) the change in the forecast for the beginning of operation of P1 of Fernão Dias (from 4Q09 to 2Q10) and (ii) taking into consideration the volume of toll-paying traffic recorded by the concessionaires throughout the year.6
  • 7. Net Revenue – Evolution per Concessionaire Net Services Revenue Var% Var% 3Q09 2Q09 3Q08 9M09 9M08 9M/9M (R$ thousand) 3Q09/2Q09 3Q09/3Q08 Autovias 51,989 47,096 51,307 10.4% 1.3% 141,977 134,784 5.3% Centrovias 48,962 44,734 47,978 9.5% 2.1% 135,467 123,449 9.7% Intervias I t i 59,910 59 910 53,369 53 369 58,186 58 186 12.3% 12 3% 3.0% 3 0% 161,103 161 103 151,675 151 675 6.2% 6 2% Vianorte 46,843 41,941 46,163 11.7% 1.5% 126,411 121,179 4.3% Total - State Concessions: 207,704 187,140 203,634 11.0% 2.0% 564,958 531,087 6.4% Planalto Sul 15,497 , 14,739 , - 5.1% n.a. 39,671 , - n.a. Fluminense 18,805 13,179 - 42.7% n.a. 38,370 - n.a. Fernão Dias 25,390 23,244 - 9.2% n.a. 60,060 - n.a. Régis Bittencourt 43,700 34,678 - 26.0% n.a. 94,932 - n.a. Litoral Sul Lit l S l 24,206 24 206 14,329 14 329 - 68.9% 68 9% n.a. 42,539 42 539 - n.a. Total - Federal Concessions: 127,598 100,169 - 27.4% n.a. 275,572 - n.a. Total: 335,302 287,309 203,634 16.7% 64.7% 840,530 531,087 58.3% Electronic Toll Collection: Revenues through electronic collections (AVI System) in the state concession toll plazas in 3Q09 represented 53 7% compared to 53 0% in 2Q09 and 51 6% in 3Q08; 53.7% 53.0% 51.6% For the federal concessions the average percentage of electronic collections is currently at 29 6% against 27 5% in the 2Q09 29.6%, 27.5% 2Q09.7
  • 8. Adjusted EBITDA and Margin Adjusted EBITDA (in R$ million) Adj d 71.3% 69.1% 66.1% 66 1% 63.6% 65.2% 65 2% 62.7% 63.9% 59.8% 63.3% 58.5% 37.4% 50.4% 196.1 145.3 145 3 144.8 144 8 112.0 126.5 104.5 93.3 109.0 81.5 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Adjusted EBITDA Adjusted EBITDA Margin (%) Adjusted EBITDA Margin (%) – Ex- Federals EBITDA & Adjusted EBITDA Var% Var% 3Q09 2Q09 3Q08 9M09 9M08 9M/9M (R$ th thousand) d) 3Q09/2Q09 3Q09/3Q08 NET SERVICE REVENUE 335,302 287,309 203,634 16.7% 64.7% 840,530 531,087 58.3% Cost and Service Expenses (125,642) (129,427) (45,231) -2.9% 177.8% (378,372) (146,814) 157.7% EBITDA 209,660 157,882 158,403 32.8% 32.4% 462,158 384,273 20.3% EBITDA Margin (%) 62.5% 55.0% 77.8% 55.0% 72.4% (-) Fixed Concession Charge Paid (13,595) (13,119) (13,118) 3.6% 3.6% (39,832) (36,641) 8.7% Adjusted EBITDA 196,065 144,763 145,285 35.4% 35.0% 422,326 347,632 21.5% Adjusted Adj t d EBITDA M i (%) Margin 58.5% 58 5% 50.4% 50 4% 71.3% 71 3% 50.2% 50 2% 65.5% 65 5%8
  • 9. EBITDA – Federal Concessions Only EBITDA - Federals Concessions Var% 3Q09 2Q09 (R$ thousand) 3Q09/2Q09 NET SERVICE REVENUE 127,598 100,169 27.4% Costs and Service Expenses (75,112) (75,017) 0.1% Costs f S i C t of Services (E Amort. and D (Ex. A t d Depre.) ) (55,311) (55 311) (55,305) (55 305) 0.0% 0 0% Grant Authority Expenses (8,757) (8,558) 2.3% General & Administrative Expenses (Ex. Amort.) (10,446) (10,292) 1.5% Directors Compensation (677) (680) -0.4% Tax Expenses (1) (219) -99.5% Other Revenues/ Expenses 80 37 116.2% EBITDA 52,486 25,152 108.7% EBITDA Margin (%) 41.1% 41 1% 25.1% 25 1% The following two factors explain the increase of EBITDA in our Federal Concessions during this quarter: Increase in Net Revenues in the period due to the operation of 27 out of the 29 toll plazas throughout the 3Q09, in addition to the beginning of collection of the last toll plaza at Autopista Fluminense. Maintenance of Operating Costs and Expenses vs. 2Q09 (+0.1%). We highlight that the operating costs and expenses in federal concessions were below and tend to be below the cost figures listed in the proposals to ANTT (Brazilian Land Transportation Agency) in 2007.9
  • 10. Financial Result Var% Var% Financial Result (R$ thousand) 3Q09 2Q09 3Q08 9M09 9M08 9M/9M 3Q09/2Q09 3Q09/3Q08 Financial Revenues (2,027) 10,784 6,222 -118.8% -132.6% 22,736 12,080 88.2% Financial Expenses (53,966) (40,848) (60,696) 32.1% -11.1% (136,719) (136,724) 0.0% BNDES (12,573) (2,765) (3,748) 354.7% 235.5% (18,402) (18,139) 1.4% Other Financial Expenses (37,915) (34,455) (46,446) 10.0% -18.4% (109,811) (72,175) 52.1% Monetary Correction of Fixed C. Charge (3,478) (3,628) (10,502) -4.1% -66.9% (8,506) (46,410) -81.7% Net Exchange Variation 37 112 (79) n.r. n.r. 178 (34) n.r. Net Financial Result (55,956) (55 956) (29,952) (29 952) (54,553) (54 553) 86.8% 86 8% 2.6% 2 6% (113,805) (113 805) (124,678) (124 678) -8 7% 8.7% % Net Services Revenue -16.7% -10.4% -26.8% -13.5% -23.5%Financial Expenses Breakdown (% total of the financial expenses) IGP M- (Inflation) – Quarterly IGP-M 1.5% 84.3% 76.5% Other Financial Expenses 70 3% 70.3% -0.3% 0 3% -0.4% 3Q09 2Q09 3Q08 CDI (Interest Rate) – Quart. Average BNDES 23.3% 17.3% 12.8% % Monetary Correction of 8.9% 6.4% 10.3% Fixed Concession Charge 8.7% 6.8% 6.2% 3Q09 2Q09 3Q08 3Q09 2Q09 3Q0810
  • 11. Net Income Results Evolution (in R$ thousand) 144,204 (12,536) (57,283) (8,928) (14,200) (14,067) (8,249) (8 249) 7,024 7 024 (10,630) (10 630) (178) 55,955 30,798 Net Income Gross Deductions Costs Grant Authority G&A Deprec. and Financial Financial Monetary IR&SC Net Income 3Q08 Revenues Expenses Expenses Amort. Revenues Expenses Correction Taxes 3Q09 of Fixed Concession Charge +81.7%11
  • 12. Debt StructureGross Indebtedness (in R$ million) Leverage Ratio and Net Debt (in R$ million) Leverage Ratio and Net Debt (R$ million) Indebtness (R$ million) 1,936 2.5x 2.6x 2.4x 1,657 1,425 739 1.9x 267 1012 1037 922 1.4x 1.3x 1.1x 1.0x 1.1x 1,291 1,325 691 690 1,174517 518 915 933 935 1.158 1,158 1 158 375 355 652407 399 1,197 471 456 437 416 316 335110 119 79 1023Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Long T L Term Short T Sh t Term Net Debt Net Debt/ Adjusted EBITDA (LTM)Debt Cost Breakdown Debt Amortization Schedule (in R$ million) 88.5% Cronograma Financeiro de Amortização (R$ Milhões) 69.0% 735.3 695.5 52.7% CDI 30.7% 47.0% TJLP 192.9 11.1% 0.4% 0.3% 0.3% Other 22.0 11.7 3Q08 2Q09 3Q09 Oct/09 to Oct/10 to 2011 2012 2013 Sep/10 Dec/1012
  • 13. Indebtedness – Federal Concessions BNDES Bridge Loan (Federal Concessions): Credit line totaling R$ 1.0 billion structured with of the "BNDES Bridge Loan" for the federal concessions in June 2009; Until September 30, 2009 already had been disbursed R$668.8 million. BNDES Long-Term Loan (Federal Concessions): Material delivered and beginning of studies; The first payments of this credit line are expected for 2Q10. Long-Term Loan (State Concessions): The Company is already negotiating with financial institutions to roll-over its debts maturing in January 2010 in state concessionaires.13
  • 14. CapEx CapEx Breakdown 3Q09 – R$172 6 million* C E B kd R$172.6 illi * 11.88% 9.30% 3.48% 15.41% 10.31% 5.33% 6.92% 22.19% 15.18% Estimated investments for the next 5 years (2009 to 2013), as scheduled under the concession agreements: State Concessions: R$470 million; St t C i illi Federal Concessions: R$4.3 billion. * Not considering investments in other subsidiaries, holding and adjustments of consolidation.14
  • 15. New Opportunities Federal Highways: 3rd Stage / 1st Phase: BR-040, BR-381 and BR-116 (Minas Gerais State). 2,000 km with 3 l t A ti estimated t occur i 2010 ith lots. Auction ti t d to in 2010; 3rd Stage / 2nd Phase: BR-101/ES, BR-101/BA and BR-470/SC. 1,600 km with 3 lots. No estimate date for the auction. State Highways: Minas Gerais. 16 lots with 7,000 km. Concessions or PPP’s. Estimated to occur in , 2009/2010; São Paulo: 2 lots with approximated 386 km of roads on São Paulo State coast. No estimate date for the auction. Airports: Galeão (Rio de Janeiro) and Viracopos (Campinas-SP) Are expected the (Campinas-SP). concession of these two airports to privately-owned enterprise. PPP - Aeroporto Internacional de São Gonçalo do Amarante (Natal/RN). Estimated to occur first half 2010.15