VIP Kolkata Call Girl Entally 👉 8250192130 Available With Room
Investors Presentation_March2013_site
1. INVESTORS PRESENTATION
2013
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
V.05.13
2. LEGAL DISCLAIMER
This material is not to be construed as an offer and/or advice and/or solicitation for the subscription
or purchase of any securities and shall not be interpreted as such in any jurisdiction.
The information presented by Investimentos e Participações em Infraestrutura S.A. - INVEPAR
(“Company”) and included in this material is solely for informational purposes and shall not be used
under any situation for basis of investment decision in securities.
The Company and its legal representatives make no representation or warranty, either express or
implied, as to the information provided in this material, including but not limited to in relation to the
accuracy, sufficiency, reliability or completeness of the information or opinion contained herein, and
will not accept liability for the use of this material by anyone.
The forward-looking statements contained in this presentation are based on the current
assumptions and outlook of the Company’s management. Actual results, performance and events
may differ significantly from those expressed or implied in these forward-looking statements as a
result of several factors such as the general and economic conditions in Brazil and abroad, interest
and exchange rates, future renegotiations or pre-payments of liabilities or loans denominated in
foreign currency, changes in laws and regulations, and general competitive factors (regionally,
nationally or internationally).
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
3. KEY INVESTMENT HIGHLIGHTS
High Quality
portfolio
of long-term Strong
Favorable industry concessions investment and
dynamics of the operational track
Brazilian record
infrastructure sector
Significant Strong growth
opportunities in the business
Transport model with attractive
Infrastructure Seasoned returns and inflation
Sector management and protection
solid shareholder
structure
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
3
4. BRAZILIAN INFRASTRUCTURE HAS SIGNIFICANTLY
LAGGED GLOBAL BENCHMARKS
INFRASTRUCTURE PENETRATION IN EMERGING MARKETS IS ~10 TO 20 TIMES
LOWER THAN IN MATURE MARKETS
HIGHWAYS AIRPORTS PORTS SUBWAYS
% of paved 1,000 TEUs/ Km/million
highways Pax/inhabitant
per capita inhabitants
Austria 100 UK 2,0 Malasia 642 Mlebourne 59.2
Denmark 100 Canada 2.0 South Korea 375 Madrid 43.8
France 100 Germany 1.4 Spain 274 Berlin 33.7
Israel 100 Spain 1.3 Sri Lanka 198 London 32.9
UK 100 France 1.0 Germany 179 Paris 20.3
Turkey 89 Malasia 0.9 Italy 162 Moscow 18.9
Japan 80 South Korea 0.9 Japan 142 Chiacago 17.7
South Korea 79 Italy 0.8 Canada 141 Montreal 17.4
Poland 70 Japan 0.7 USA 136 Milan 16.5
Servia 63 Chile 0.6 UK 119 New York 15.7
Indonesia 57 Russia 0.4 China 97 Beijing 14.0
Australia 43 Brazil
Brazil 0.4 Thailand 96 Toronto 14.0
Hungary 38 Colombia 0.3 France 82 Santiago 9.8
Ivory Coast 26 Thailand 0.3 South Africa 76 Mexico city 8.7
Sweden 24 China 0.2 Brazil
Brazil 42 Delhi 8.2
Chile 22 Indonesia 0.1 Indonesia 35 Osaka 7.7
Brazil
Brasil 13 Sri Lanka 0.1 Mexico 33 Tokyo 5.7
Nicaragua 12 Mexico 0.1 Poland 27 São Paulo
São Paulo 3.5
Bolívia 8 India 0.1 India 8.0 Buenos Aires 3.4
59 0.7 151 18
Source: World Bank; DNIT, McKinsey, ABCR
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
4
5. INVESTMENTS WERE NOT ENOUGH IN THE PAST BUT
ARE BOOSTING IN THE FUTURE
THE LEVEL OF INVESTMENT IN INFRASTRUCTURE IS REBOUNDING IN BRAZIL
Investment in infrastructure
% of GDP
5 Years Forecast
5.4
2.1 Transportation Electricity
3.7
R$ 287 bn* R$ 142 bn
0.8 1.4
2.4 2.4
2.2
0.5 0.7 0.9
0.8
2.0
0.8 0.5 Telecom Water & Sewage
0.6
1.5
R$ 98.5 bn R$ 85 bn
0.6 0.6 0.8
0.5 0.3 0.3
0.2 0.2
1970-79 1980-89 1990-99 2000-09 2010-11
Water & Sewage Transportation Telecom Electricity
* Invepar estimates: Toll Roads (R$ 51.5 bn), Railways (R$ 60 bn), Ports (R$ 54.2 bn), Airports (R$ 20.7 bn), Urban Mobility (R$ 66 bn) and High Speed Rail (R$ 35 bn)
Sources: World Bank, IPEA and BNDES (“Investimentos na Infraestrutura Nacional”, Oct. 2012), PAC 2, Ministry of Transportation, Research Reports (October , 1st 2012), ABDIB,
Ministry of Finance (ISTOÉ Dinheiro – Feb, 2013)
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
5
6. INVEPAR AT GLANCE – GREAT COMPANY, EVEN
GREATER POTENTIAL
COMPANY OVERVIEW
25.6% 25.0% 25.0% 24.4%
Strong sponsorship: controlled by the 3 biggest pension
funds and one of the top 5 construction companies in Brazil
Portfolio of high quality and diversified concessions
with a focus on transport infrastructure
Combination of strong growth potential within a solid and
well tested regulatory framework
TOLL ROADS AIRPORTS URBAN MOBILITY PORTS
8 concessions GRU AIRPORT, the MetrôRio, the Largest Currently studying
1,027 km of toll roads Busiest airport in Latin private operator in Brazil opportunities on the
147 million paying vehicle America 41 km of extension segment
equivalents in 2012 33 million PAX in 2012 186 million PAX in 2012
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
6
7. INVEPAR IS A LEADING COMPANY IN THE TRANSPORT
INFRASTRUCTURE SECTOR
VISION, MISSION AND VALUES
VISION VALUES
To be the leader and Our operations are based on best
international reference in the corporate governance practices and
transport infrastructure sector we value
Personnel and teamwork
Honesty
MISSION Corporate social responsibility
Entrepreneurship
To provide and operate Commitment
transport Respect
infrastructure services with Innovation
excellence and generate
results that exceed the
expectations of society,
customers and shareholders
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
7
8. THE FASTEST GROWING COMPANY IN THE MARKET
SINCE 2008
NUMBER OF 2 4 6 7 10 10
CONCESSIONS
1998 2000 2009 2010 2011 2012 2013
Concession
100% 91.5% 100% 50% 50% 46% extension
+10years
100% 100%
25%
Trans-
Concession olímpica 33.3%
extension
+ 15years
Line 4 RJ 100%
* The acquisition process is dependent on conditions precedent (CP) and is expected to occur in 2016. Subway*
Until then, Metrobarra S.A. (100% subsidiary of Invepar) will provide rolling stock material and systems to Line 4.
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
8
9. STRATEGIC ACHIEVEMENTS IN 2012
Invepar has started its internalization process
International
through the acquisition of a toll road in Lima,
Expansion Peru.
Invepar attained its strategic goal of entering the
Entrance on Airport airport industry by winning the bid to manage
Sector and operate Guarulhos Int. Airport, in Sao
Paulo, the busiest airport in LatAm.
Established Player Invepar’s track record in Public Interest
Expression development includes CRA
for Public Interest Via Expressa
concession in Pernambuco, and the recent
Expression (PMI*) success in winning the bid to build, operate and Transolímpica
projects maintain Transolímpica toll road.
Exclusive Subway Call option agreement to operate and
maintain Line 4 (16km extension) reinforces Line 4
Operator in Rio de
Invepar as the sole operator of Rio de Janeiro’s RJ Subway **
Janeiro
subway system. Expected acquisition in 2016.
* PMI – Public Interest Expression: legal instrument through which the private sector develops feasibility studies for projects of public interest, showing
a proactive approach and creating competitive advantage
** The acquisition process is dependent on conditions precedent (CP) and is expected to occur in 2016. Until then, Metrobarra S.A. (100% subsidiary of
Invepar) will provide rolling stock material and systems to Line 4.
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
9
10. INVEPAR HAS A DIVERSIFIED PORTFOLIO,…
DIVERSIFIED BY LOCATION DIVERSIFIED BY SEGMENT
8
Urban Toll
3
Roads
45km 2046 50%
25km 2049 100%
5
1 1
121km 2035 50%
Toll Roads Airports Urban Mobility
DIVERSIFIED BY
444km 2039 100%
217km 2035 91.5%
GRANTING AUTHORITY
5
3
2
n.a. 2032 46%*
41km 2038 100%
Federation State Municipality
Transolímpica
143km 2021 25% Line 4 The majority of Invepar’s assets
13km 2047 33.3%
RJ Subway ** is located in the states with the
largest participation in the
16km 2036 100% Brazilian GDP – SP (33.1%), RJ
(10.8%), BA (4.1%)
Toll road Extension 20km 2037 100%
Source: IBGE, 2010
End of
Urban Mobility concession
* Invepar owns 90%of Aeroporto de Guarulhos ** The acquisition process is dependent on conditions
% Invepar’s Participações S.A., which owns 51% interest in precedent (CP) and is expected to occur in 2016. Until then,
Airport share
Guarulhos Airport Metrobarra S.A. (100% subsidiary of Invepar) will provide
rolling stock material and systems to Line 4.
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
10
11. …WITH ATTRACTIVE AND HIGH QUALITY ASSETS
Concessioná-
Concessioná- Concessioná-
Concessioná- ria Auto
Linha Amarela Bahia Norte Via Expressa ria Rio- ria Rota do Via Parque Guarulhos
ria Litoral Raposo MetrôRio
(LAMSA) (CBN) Transolímpica Teresópolis Atlântico Rímac (VPR) Airport (GRU)
Norte (CLN) Tavares
(CRT) (CRA)
(CART)
Concession type
Network length (km) 20 217 444 121 13 143 45 25 41 n/a
Key
characteristics
Location
Employees (2012) 412 168 622 474 11 332 38 69 2,429 462
Invepar's share 100.0% 91.5% 100.0% 50.0% 33.34% 25.0% 50.0% 100.0% 100.0% 46.0%
Grupar 51.0%
Carioca (21.4%)
Shareholder (90.0% Invepar
Strata (16.6%)
structure 1 1 OTP1 (33.3%) and 10.0%
Equity partners (stake) - OTP (8.5%) - OTP (50.0%) QG2(11.9%) OTP1 (50.0%) - -
CCR (33.3%) ACSA)
CRT FIP3
ACSA (5.0%)
(11.0%)
Infraero6 (49.0%)
Development stage Maturity Growth Ramp-up Ramp-up Construction Maturity Ramp-up Ramp-up Growth Growth
Concession period Dec’97-Dec’37 Mar’00-Mar’35 Mar’09-Mar’ 39 Aug’10-Aug’35 Apr’12-Apr’47 Mar’96-Mar’21 Jul’11-Jul’46 Nov’09-Nov’49 Jan’98-Jan’38 Jul’12-Jun’32
Concession Tenor 404 35 30 25 35 25 35 405 40 20
term
Remaining life
24.84 22.0 26.0 22.4 34.1 8.0 33.3 36.65 24.8 19.2
(as of Mar’13)
Concession maturity (%) 38.0%4 37.1% 13.3% 10.4% 2.6% 68.0% 4.9% 8.5%5 38.0% 4.0%
Volume VEPs/MPAX (2012) 49,422 6,999 47,043 28,195 n/a 15,707 n/a n/a 186.0 MPAX 32.8 MPAX
Notes:
1.Odebrecht Transport
2.Queiroz Galvão
3.CRT Fundo de Investimento em Participacoes
4.In 2010 the concession was extended by 15 years
5.In 2013 the concession was extended by 10 years
6.State-owned company
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
11
12. STRONG AND PROVEN ORIGINATION TRACK RECORD
PROVEN ORIGINATION CAPABILITY THROUGH DIFFERENT FORMATS
DIFFERENTIATED REMARKABLY POSITIONED in Brazil
TRACK RECORD Urban Mobility: the largest private
APPROACH
operator
Airport: the best asset class
Contract Amendments
ORGANIC
PIONEER AND INNOVATIVE COMPANY
through Public Interest Expression practice
New Business Opportunities On going works in all (Proactive approach creates competitive
within Current Assets concessions advantage)
LONG-TERM VALUE assets with Attractive IRR
Public Tenders
Average remaining term (years)
INORGANIC
Public Interest Via Expressa
Transolímpica 25 22
Expression (“PMI”)
16 14 13
M&A Line 4 Invepar Triunfo CCR Arteris Ecorodovias
RJ Subway* Note: Invepar`s analysis as of February 2013 (arithmetic average)
* The acquisition process is dependent on conditions precedent (CP) and is expected to occur in 2016. Until then, Metrobarra S.A. (100% subsidiary of
Invepar) will provide rolling stock material and systems to Line 4.
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
12
13. ASSETS ARE STILL RAMPING UP
Toll Roads Urban Mobility Airports
Number of Paying Passengers Transported GRU AIRPORT (million of PAX and
Vehicle Equivalents (in million) MetrôRio (in million) thousands of tons of cargo)
395 441 586 507
186 33
147 180 30
130 27
164 12
106 22 11
152 10
9
53
19 21
13 17
2009 2010 2011 2012 2009 2010 2011 2012 2009 2010 2011 2012
Domestic International cargo
Invepar assumed the
concession in Nov´12
Brownfields are performing above 19 new trains to be fully Construction of new T3 already
Highlights
expected: LAMSA, CLN and CRT operational in 1Q 2013 (12 begun
Greenfield projects in ramp-up: already part of the fleet in T1 & T2 Refurbishment
CART, Bahia Norte and Via Parque December) that will increase
Real estate developments
Rímac capacity in more than 60%
Commercial and cargo exploration
CRA will start operations in the 1 new station in 2010
areas
1H 2013 1 new station under construction:
36 new aircraft parking spaces
Transolímpica is under construction Uruguai (1Q 2014)
New car parking spaces (from 4,100
for 1H 2016 to 10,000)
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
13
14. DELIVERING A STRONG GROWTH
NET REVENUES
(in R$ million) 1.285
IF GUARULHOS AIRPORT HAD BEEN
905 CONSOLIDATED IN 2011, THE SPLIT IN
740 NET REVENUES WOULD HAVE BEEN:
469
156
35% Toll Roads
30%
2008 2009 2010 2011 2011e
pro forma* Urban Mobility
Airports
EBITDA & EBITDA Margin 554
35%
(in R$ million)
345 2011 GUARULHOS NET REVENUES: R$ 825.4 MM
260 Invepar’s share (46%): R$ 379.7 MM
43.1%
123 38.1%
103 35.1%
65.8% 26.2%
2008 2009 2010 2011 2011e
pro forma** pro forma*
* Net Revenues 2011e pro forma and EBITDA 2011e pro forma consider 46% consolidation of Guarulhos Airport
** EBITDA 2010 pro forma excludes the impact of Provision Reversal of IPTU (municipal urban property tax) in Metrô Rio Income Statement. 2010 EBITDA was R$ 304 MM
(41% of EBITDA Margin);.
Notes: Net revenue and EBITDA shown are net of the impacts of the IFRS.
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
14
15. REVENUES AND EBITDA MARGIN WILL CONTINUE TO
GROW AS THE PORTFOLIO MATURES
EBITDA MARGINS IMPROVE OVER THE LIFE OF CONCESSIONS
100% Expected margin in
the mid/long term
90%
80%
Airports 75% Well-balanced portfolio
70% 70%
LAMSA from a life-cycle
Toll Roads 65%
60% GRU 60%
perspective
CRT Urban
AIRPORT2 55%
% EBITDA margin
50%
Mobility
50%
Average remaining life
of c.25 years
40% CART
Significant potential
MetrôRio
30% from numerous assets
in construction and
20% ramp-up phase
CLN
10% Substantial cash flow
from concession in
0% CBN
CRA
Transolimpica
Assets under construction will Strong increase in revenues Mature concessions with high growth phase
VPR enable sustained future growth and profitability in the future profitability and long remaining life
-10%
Award 10% 20% 30% 40% 50% 60% 70% 80% 90% Reversion
% concession maturity¹
Concessions under construction Ramp-up stage concessions Growth stage concessions Mature concessions
Notes: The size of the bubbles represents proportional 2011 net revenues (Including GRU Airport proforma). Net Revenues and EBITDA margin net of the impacts of the IFRS
1 Years elapsed over total years of concession
2 GRU Airport proforma: For 2011, net revenue was based on Infraero’s performance.
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
15
16. LONG TERM DEBT PROFILE IN LOCAL CURRENCY
DEBT PROFILE AMORTIZATION SCHEDULE – 3Q12
(in R$ million) (in R$ million)
Short Term
2,957 2,821
2,651 3T12 - 1T13 545 19%
2,063 2T13 - 4T13 32 1%
R$ 750 million debenture
74% 2014 262 9% issuance from CART toll road
77% 80%
62% in 4Q12 refinanced
2015 155 6% approximately R$ 400 million
of short term debt
23% 38% 26% 20% 2016 173 6%
4Q11 1Q12 2Q12 3Q12 2017 158 6%
Short Term Long Term 2018+ 1,496 53%
NET DEBT DEBT PROFILE – 3Q12
(in R$ million)
5000 8 Index Source Currency
6.1
4000 Other BNDES Peruvian
6 TR TJLP 15% 34% Nuevo Sol
3000 3.7 23%
3.1 4 34% 15%
2000 2.4
1000 2,073 2
905 1,139 1,360
Inflation Brazilian
0 0
and others CDI Bonds Real
4Q11 1Q12 2Q12 3Q12
24% 19% 51% 85%
Net Debt Net Debt/EBITDA
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
16
17. COMMITTED SHAREHOLDERS WITH STRONGLY
ALIGNED INTERESTS
SHAREHOLDER STRUCTURE WITH THREE OF THE BIGGEST BRAZILIAN PENSION FUNDS
AND A CONSTRUCTION COMPANY WITH MORE THAN 30 YEARS OF EXPERIENCE WITH
GREAT INVESTMENT CAPACITY Ranking of Pension Funds in Brazil (2011)
PREVI 156
The largest pension fund in Latin America PETROS 58
and 25th in the world, by assets. Its main FUNCEF 48
sponsor is Banco do Brasil CESP 19
VALIA 15
IT AU UNIBANCO 13
SISTEL 13
The second largest pension fund in Brazil.
BANESPREV 10
Its main sponsor is Petrobras
REAL GRANDEZA 10
FORLUZ 10 Assets Under Management
(R$ billion)
Source: ABRAPP
The third largest pension fund in Brazil. Its
main sponsor is Caixa Econômica LONG-TERM COMMITMENT WITH INVEPAR
Federal
CONTINUOUS SUPPORT WITH THE
ACQUISITION OF NEW PROJECTS
One of the top 5 players in the heavy
construction sector in Brazil and other
countries WILLINGNESS TO STAY IN THE SHARE-
HOLDER STRUCTURE AFTER THE IPO
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
17
18. SUPPORTED BY A ROBUST CORPORATE GOVERNANCE
MODEL Investment Analysis GHG Inventory (2013E)
Board comprised of 8 members Development of GRI Guidelines for
Operational Monitoring communication
Metrics Assisted realocation of
Fiscal Council
ERP System families policy
Professional Management
Board’s segregation (CEO and
Chairman)
Constituted advisory committees linked
to the Board of Directors Corporate
Governance &
Sustainability:
Investments and Areas of
Internal Audit
Financial Support Area dedicated
Report to the relation-
Civil Works HR & Governance directly to ship with
the Board of investors and
Dept. of Corporate
Directors the capital
Governance
Code of Ethics markets
Official Channel of
Invepar is registered in the A category Communication between the
in CVM and discloses its financial Shareholders, the Board of
statements as a publicly-traded company Directors and the Company
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
18
19. SEASONED MANAGEMENT TEAM
PEOPLE-ORIENTED COMPANY
Executive Management Team with extensive experience
in infrastructure in Brazil
Average of 26 years of work experience, with 17 years in
the infrastructure sector
Over 7,800 direct1 and 6,200 third-parties employees
Focus on hiring, retaining and developing people:
Second year of Trainee Program Innovation Incentive Plan
Succession Career Plan Leadership Development
Program, among others
Job Rotation Practice
Compensation policy aligned with
best practices
Long-term executive compensation aligned with
shareholders interest and best market practices
1 2013 Forecast, including GRU Airport, Via Parque Rímac and CRA headcounts
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
19
20. DIFFERENTIATED APPROACH TO NEW OPPORTUNITIES
INVEPAR’S INVESTMENT DECISIONS ARE ORIENTED BY CLEAR STRATEGIC
GUIDANCE
GUIDING PRINCIPLES FOR NEW INVESTMENTS
Focus on countries with stable regulatory
framework and economic environment
Participation in the controlling block
Long term investments
Preference for Greenfield opportunities
Opportunistic Acquisitions
Capturing value from correlated business
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
20
21. EXPECTED INVESTMENT IN THE NEAR FUTURE
BRAZILIAN GOVERNMENT WANTS TO FULFILL THE LACK OF INVEST-MENT IN
DIFFERENT TRANSPORT INFRASTRUCTURE SECTORS
Toll Roads Airports
Potential to more than double the granted kms of The Government has launched the second round
the concessioned toll roads of airports concessions. Auction has been
Announced federal investments: R$ 42 bn scheduled for Sep 2013
investments and 7.5 thousand kms Announced investments R$ 6.6 bn at Galeão, R$
The State of São Paulo is studying the concession 4.8 bn at Confins and R$ 7.3 bn in 270 regional
of all 15 thousand kms under its jurisdiction airports
Urban Mobility &
Ports
High Speed Rail
The Federal Government has launched a new
regulatory framework for Ports Concession Announced federal investments for urban mobility
through PAC: R$ 39 bn
Announced investments: R$ 54 bn until 2017
Additional investments in urban mobility in São
Concession biding process for 5 public ports Paulo, Rio de Janeiro, Brasília, Fortaleza, among
starts in 2013 others
New bids for terminal leasing in public ports and High Speed Rail project connecting São Paulo to
for the construction of new private terminals Rio de Janeiro
(TUPs)
Source: Federal Government and Invepar`s analysis
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
21
22. OPPORTUNITIES IN THE TOLL ROAD SECTOR
FEDERAL GOVERNMENT RECENTLY ANNOUNCED A NEW PACKAGE OF HIGHWAY
CONCESSIONS OF MORE THAN R$ 42 BILLION INVESTMENTS IN 7.5 THOUSAND KM
Announced concessions
Announced Federal Concessions
Projects Highlights
9 lots in 5 different states.
The winner will be the one offering 1 BR 101 ES/BA
the lowest toll tariffs.
2 BR 262 ES/MG
3
Investment concentrated in the first 7
3 BR 153 GO/TO
5 years of concession. 1
4 BR 050 GO/MG 9
Urban traffic will not be tolled. 5 8
5 BR 060/153/262 DF/GO/MG
Toll collection will only be allowed after 2
6
10% of construction works are 6 BR 163/267/262 MS
4
concluded.
7 BR 163 MT
30-years term and implicit unlevered
8 BR 040 DF/GO/MG
IRR 5.5% (government studies).
9 BR 116 MG
Source: Federal Government
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
22
23. OPPORTUNITIES IN THE URBAN MOBILITY SECTOR
SEVERAL URBAN MOBILITY PROJECTS UNDER DEVELOPMENT IN BRAZIL, DRIVEN
BY THE GLOBAL EVENTS THAT WILL TAKE PLACE IN BRAZIL IN THE NEAR FUTURE
Projects Highlights Main Urban Mobility Projects
1 Fortaleza, CE
Large global events are boosting the ▪ Line East
projects (World Cup and Olympic
2 Recife, PE
Games). ▪ Urban Mobility
3 Salvador, BA
Structured mostly in the PPP model. ▪ Subway System 1
4 Belo Horizonte, MG
2
The private sector has actively ▪ Subway Expansion
participated on the structuring 5 Rio de Janeiro, RJ
of projects through Public Interest ▪ Line 3 3
Expression (“PMI”). ▪ LRT 9
6 São Paulo, SP 7 Curitiba, PR 10
▪ Lines 6 ▪ Line Blue 4
Public funds will be used under the ▪ Line 13 (Express Airport and
8 Porto Alegre, RS
PAC Urban Mobility, Federal Budget local service) 5
▪ Lines 15, 17 and 18 ▪ Line 2 6
and under financing programs of 7
(monorails)
BNDES and CEF. 9 Distrito Federal
▪ Line 20 ▪ LRT
▪ Express ABC (close to Line 8
10) 10 Goiânia, GO
▪ Interstate trains: Sorocaba- ▪ LRT
Pindamonhangaba and
LRT – Light Rail Transit (synonym: TRAM) Santos-Americana
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
23
24. OPPORTUNITIES IN THE AIRPORT SECTOR
THE GOVERNMENT HAS LAUNCHED THE SECOND ROUND OF AIRPORTS
CONCESSIONS
Projects Highlights Potential Opportunities
The Federal Government began the
concession process for Galeão and Additionally, São Paulo State
Confins International Airports. should lead a privatization
process of the state owned
Investments are expected to reach
airports
R$ 6.6 bn at Galeão (RJ) and R$
4.8 bn at Confins (BH). Auction has
been scheduled for Sep 2013. Saturation
7
PAX in 2012
Airports level
Million
The new model requires large %
5
airport operators (at least 35MM 1 Galeão 1
17.5 101
PAX p.a.), with a minimum 25% stake 3
2 Congonhas 16.8 140
in the winning consortium. 2
3 10.2 4
Another R$ 7.3 bn should be invested Confins 100
1 2
3
in 270 regional airports.
4 S. Dumont 4
9.0 105
Infraero Serviços, subsidiary of
Infraero, was created to offer airport
5 Salvador 5
8.5 81
6
management services to other 6 P. Alegre 6
8.3 63
airports outside Infraero’s network.
7 Recife 7
6.4 80
Source: Infraero
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
24
26. GREAT ENTRANCE ON AIRPORT SECTOR: GRU AIRPORT
KEY INVESTMENT HIGHLIGHTS
A unique
Scarcity of such high quality asset in the current environment
investment
Strong cash generation (EBITDA margin of 53.8% in 2011)
opportunity
Favourable Brazil will be the fifth largest consumption market in 2020
economic Air travel market benefits from a growing middle class and first-time fliers
framework Open Skies agreements will bring more dynamism and competitiveness to the market
Attractive 10th largest city in the world by GDP
geographic #1 entry point to Brazil and gateway to Latin America
location Large and economically attractive catchment area
Largest airport in LATAM with a passenger throughput of 32.8 MPAX in 2012
Solid positioning - Substantial international traffic component (35.2% of total)
with transfer hub
Solid and diversified customer base and major hub for national carriers
potential
Wide destination coverage
Strong historical traffic growth (2003-12 CAGR of 12%) with relative resilience
Strong long term
throughout the recent economic downturn
traffic growth
Underlying macro-economic fundamentals of Brazil should continue to drive growth
prospects
going forward
Diversified and Underexploited commercial activity (duty free, car parking, real estate, advertising,
resilient revenue food & beverage and traditional retail)
streams Significant potential to streamline activities and improve efficiency
Huge efficiency Operational transfer from public to private sphere
improvements
New IT solutions with fully integrated systems
potential
R$ 2.9 bn CAPEX program to be achieved over the 2012-14 period in order to:
Focussed capex Increase capacity to accommodate future growth
program Improve commercial and cargo performance
Enhance passenger experience
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
26
27. GRU AIRPORT: ATTRACTIVE PRICE, WITH A STRONG
GROWTH POTENTIAL
Bid value adjustment1 Implicit Multiples2 Comments
(in R$ million)
Payment diluted throughout
the 20 years of the
10-11x
$16,213 concession, no up-front
$6,332
disbursement
6-7x
$3,359 $6,521
R$ 16.2 bn bid paid by the
$9.881 Concessionary (SPV)
$6.521
Source of funds: Equity,
Bid Value Present Value of Present Value of Bid Present Value Adjusted Bid Value / Adjusted Bid Value /
Bid Bid Tax Shield Net of Tax Benefit 2013 EBITDA 2015 EBITDA Debt and Operational Cash
3
Flow
Precedent Transactions Multiple
(EV / LTM EBITDA)
34.0x
32.1x
28.0x 29.3x
23.8x
21.3x 21.0x 20.8x
1 x
9.1 18.2x
Median: 16.6x 17.0x 16.8x 16.7x 16.2x
15.2x 15.2x 14.8x 14.5x 15.2x 14.9x
12.3x 13.3x 1 x
3.1 1 x
3.1
10.6x 1 .9x
1
10.3x 1 .7x
1 10.5x
10.9x
4
7.9x 9.1x 9.1x
6.4x
NA
Oct- Jan- Feb- M ay- M ay- M ay- Jun- Jul- Sep- No v- No v- No v- Dec- Sep- Sep- Oct- M ay- Sep- Oct- Jun- Oct- Oct- Oct- Oct- Oct- Oct- M ar- A pr- A ug- No v- Dec- Dec- Dec- Jan-
06 07 07 07 07 07 07 07 07 07 07 07 07 08 08 08 09 09 09 10 10 11 11 11 11 11 12 12 12 12 12 12 12 12
Copenhagen
Birmingham
Edinburgh
GRU
ANA
Budapest
Charleroi
Brisbane
Northern
Brussels
Bradford
Gatwick
London
Sydney
Sydney
Oxfordt
Naples
Belfast
Hobart
Airport
Airport
Devon
Exeter
Bristol
Leeds
APAC
Pertht
DCA
Turin
Peel
BAA
BAA
SEA
BAA
BAA
SEA
TAV
AdR
City
Target
Value
(In € bn) 24.5 1.1 0.1 6.4 0.2 1.9 1.4 4.2 0.1 0.7 NA NA NA 0.2 0.2 1.2 0.1 0.4 1.7 NA 0.2 NA 20.8 NA 1.6 NA 3.0 1.0 21.3 21.3 1.4 0.1 3.1 2.5 5
(1) Assumes a 4.5% inflation, discount rate of 10%, 20 years of concession and 34% of tax rate.
(2) Consider 2013e and 2014e EBITDA. (4) Consider 2012e EBITDA.
(3) Source: Company filings, Wall Street Research, Mergermarket and Press. (5) 2.56 R$ per €, as of March 5, 2013.
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
27
28. GRU AIRPORT: IN-PLACE GROWTH OPPORTUNITIES
NON-AERONAUTICAL SHARE IN THE MIX TENDS TO GET BIGGER, LEADING TO
BETTER MARGINS. Space increase:
New Slots TPS1/2: +2,100m2
Headway Allocation Strategy
TPS 3: 5,000m
2
Tariff Maximization
Adjusted to
Market Practices Shopping Mall
Reduction from 5
to 3 nautical miles Concept: Better
Attraction of New
Mix and Location
Sales Concession Space increase
Airlines - From 30 to 60 MPAX in
the long term Fee
Fees
Renegotiation
Sales
Runways & Volume
Taxiways Passengers
Improvements
Duty Free Concession Total Spots:
- Forecasts in line Fees 4,100 10,000 (2014)
with Government`s 20,000 (End)
Duty Paid
-PAX higher
New Garage:
New Terminal than estimated
for 2012 2,600 spots
with Capacity to 12 Aeronautical Non-Aeronautical
in the Business
mm PAX in 2014 Revenues Revenues New Spots Space
Plan
Optimization:
500 spots
Revenue Mix Revenue Mix Parking
Space optimization
From 65% (2011) to
40% (Long Term)
From 35% (2011) to
60% (Long Term)
Premium Spots
and productivity
Volume
Pricing
Price
increase
Real
Cargo Estate Optimization
Handling Others Cargo New
to Market
Rationalization of the Developments Two new Hotels:
Tariffs Policy New -Airside: 50 rooms
Storage Services - Landside: 350 rooms
Attraction of New Two business
Airlines (Belly Cargo)
Value-added
towers
Done / in conclusion
Attraction of More Advertising, services (e.g. Conclusion in 2014
Cargo Aircrafts VIP Lounges, road transport)
Ultra Vip Service Conclusion in 2015
Recurrent
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
28
29. COMPETITIVE DIFFERENTIAL IN PMI STRUCTURING
THERE ARE FEW PLAYERS ABLE TO STRUCTURE A PMI PROJECT, ESPECIALLY IN
THE SEGMENT OF URBAN MOBILITY IN BRAZIL
Macroeconomic environment
Legal and Regulatory Framework
Political environment Authorization to conduct the studies
Opportunity Project Governmental Decision
Public Auction
Identification Structuring Appraisal to Proceed
New Business Technical studies Adherence to Edict Publication
Prospection Institutional modeling Regulation and Laws
Strategic Analyses (concession, PPP) Public Interest Analysis
Risk assessment Internal Approvals
Economic and financial
analyses
Bankability
Development Average Period Before Public Auction: 1.5 to 2.5 years 30-45 days on average
Expenses with studies are reimbursed in case of PMI developer loses the auction
Win/ Win Situation Successful cases in the structuring of
Invepar Government PMIs and winning the Public Auction:
Enhances relationship at different Catalyzes the agenda of
levels of the government investments in infrastructure
Via Expressa
More attractiveness of the project Solution to bottlenecks in the
More time to study the project, industry Transolímpica
resulting in better understanding Enhancement of the quality of
Definition of qualification and the projects, ensuring interest
financial criteria of the bidders from private sector
There are other PMIs that Invepar is
developing in the Urban Mobility and Toll
Roads segments
PMI – Anachronism for “Procedimento de Manifestação de Interesse” in Portuguese
INVEPAR – INVESTIMENTOS E PARTICIPAÇÕES EM INFRAESTRUTURA S.A.
29