investors' meeting 2 q08 results
TRANSCRIPT
2Q08 ResultsA t 12 2008August 12th , 2008
Forward Looking Statement
This presentation contains certain statements that are neither reported financialresults 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 they y p p ystatements. Many of these risks and uncertainties relate to factors that are beyondCCR’s ability to control or estimate precisely, such as future market conditions,currency fluctuations the behavior of other market participants the actions ofcurrency fluctuations, the behavior of other market participants, the actions ofgovernmental regulators, the Company's ability to continue to obtain sufficientfinancing to meet its liquidity needs; and changes in the political, social and regulatoryframework in which the Company operates or in economic or technological trends orframework in which the Company operates or in economic or technological trends orconditions, inflation and consumer confidence, on a global, regional or national basis.
Readers are cautioned not to place undue reliance on these forward-lookingstatements, which speak only as of the date of this document. CCR does notundertake any obligation to publicly release any revisions to these forward looking
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statements to reflect events or circumstances after the date of this presentation.
Agenda
Highlightsg g
Results
Outlook
Social and Cultural Responsibility Policy
3
Highlights
Operating
• Traffic grew by 9.4% in the 2Q08, and 8.4% in the 1H08.
• Net revenue reached R$ 635.3 million (+14.3%) in the second quarter, andR$ 1,255.7 million (+14.0%) in the 1H08.
• Net Income totaled R$ 138.0 million in the 2Q08 (+13.3%) up on the sameperiod last year, and R$ 305.2 million (+13.6%) in the 1H08.
• 28.7% increase in AVI users in the year, compared to Jun/07, totaling1 039 0001,039,000.
4
Highlights
Corporate
• On June 02nd , 2008, Consórcio Integração Oeste signed the concessionagreement and began operating the Mário Covas Ring Road – WestSegment as of this dateSegment as of this date.
• On June 03rd 2008 the Company informed its shareholders and the marketOn June 03 , 2008, the Company informed its shareholders and the marketthat it has conclude the phases foreseen in the Investment Agreemententered into on January 29th 2008 and now hold 40% of common andpreferred shares of Renovias Concessionária S/A.p
• On August 11, 2008, CCR prepaymetn of dividends for the fiscal year 2008proposed by the management approved the, in the amount of R$ 1.00 pershare, totaling R$ 403.1 million, to be paid on September 30, 2008.
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Results
The results reflect a combination of factors...
R$ MillionR$ MillionFinancial Highligths 2Q07 2Q08 Chg % 1H07 1H08 Chg %Net Revenue 555.7 635.3 +14.3% 1,101.6 1,255.7 +14.0%
Total Cost (1) (313.9) (347.6) 10.7% (599.2) (654.2) 9.2%( ) ( ) ( ) ( )
EBIT 241.8 287.7 +19.0% 502.4 601.5 +19.7%
EBIT Margin 43.5% 45.3% +1.8 p.p. 45.6% 47.9% +2.3 p.p.
(2)Depreciation and Amortization (2) 84.3 86.7 2.9% 164.6 174.2 5.8%
EBITDA 326.1 374.5 +14.9% 666.9 775.7 +16.3%
EBITDA Margin 58.7% 58.9% +0.2 p.p. 60.5% 61.8% +1.3 p.p.
Net Financial Result (45.1) (71.7) 59.2% (88.3) (125.2) 41.8%
Income and Social Contribution Taxes (73.0) (77.0) 5.5% (139.0) (167.8) 20.7%
Net Income 121.8 138.0 +13.3% 268.6 305.2 +13.6%
(1) Total Costs + Administrative Expenses(2) Includes prepaid expenses
6...higher traffic and reduction of operating costs.
Net Financial Resultidido
Net Financial Result (R$ MM) 2Q07 2Q08 Chg % 1H07 1H08 Chg %
Net Financial Result (45.1) (71.7) 59.2% (88.3) (125.2) 41.8%Financial Expenses: (61.0) (104.3) 70.9% (127.9) (200.5) 56.8%
Exchange Rate Variation 2.5 (0.0) n.m. 4.1 (12.9) n.m.
R lt f H d i T ti (3 1) (15 2) (5 5) (24 0)Results from Hedging Transactions (3.1) (15.2) n.m. (5.5) (24.0) n.m.
Monetary Variation (1.5) (34.2) n.m. (6.5) (53.6) n.m.
Interest on Short-term and Long-term Debt (46.4) (48.6) 4.7% (96.3) (96.8) 0.5%
Other Financial Expenses (12 5) (6 2) -50 7% (23 8) (13 3) -44 2%Other Financial Expenses (12.5) (6.2) 50.7% (23.8) (13.3) 44.2%
Financial Income 16.0 32.5 104.0% 39.6 75.3 90.4%Results from Hedging Transactions 0.0 0.0 n.m. 0,0 13.7 n.m.
Other Financial Income 16.0 32.5 104.0% 39.6 61.6 55.6%
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Business Dynamics
EBITDA (R$ million) x EBITDA Margin
411 401
310 309 299322 323
341326
377 374
151
216 218 224
259 263
67%151
55% 55% 54% 55%
60%56%
58%
51%
59% 57%59%
6 %
59%
65%62%
59%
44%
2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08
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Revenues
Toll Payment Method
ElectronicCash53%
47%50%53%
65%
1Q05 1Q06 1Q07 1Q08
Cash53%50%
47%35%
1Q05 1Q06 1Q07 1Q08
Revenues Breakdown – 2Q08Concession Breakdown
STP 1.8% Other 1.6%Renovias3%* Outras
AutoBan37%ViaLagos
ViaOeste16%
3%* Outras2%*
96,2%96.6%
37%
Rodonorte
Ponte4%
ViaLagos1%
9
Toll
NovaDutra26%
11%
* Pro-forma 2Q08
Traffic (Vehicle Equivalents - million)
Quarterly Evolution
146
126 126
133
126
2Q07 x 2Q08 – Concession Breakdown
2Q05 2Q06 2Q07 2Q08
9.5%
7.6%
9.9%
8.4%
5.1%
2.4%
10AutoBAn NovaDutra Rodonorte Ponte Via Lagos ViaOeste
Net Revenue & Total Costs
We are still delivering...
635
556513
471
Other
Net Revenue
)
347
17%14% 12%14%314
338
288
Third-Party
Concession Fee
Payroll
R$
(milh
ões)
%
15%
28%22%
17%14%
20%
18%
23%
15%
22%
25%
14%
22%
26%%%%
D&A
Third Party
2Q05 2Q06 2Q07 2Q08
55%
28%25%
22%
25%
23%
26%
25%
24%56%
66%
61%
Other: insurance, rent, marketing, travel, electronic payment and conservation and material for conservation and maintenance.
Third-Party Services: auditing, consulting, shared services and routine maintenance.
11... operating efficiency .
Indebtdness
Balance sheet is ready for...
Gross Debt Net Debt2,248
1,62298%
1,770
on)
1,347 1,484
100%
100%
98%
1,123 1,160 1,103
1.12ion)
R$
(mill
i
77%0.84
0.981.22
R$
(mill
iShort Term Long Term In R$ Net Debt Net Debt / EBITDA
2Q05 2Q06 2Q07 2Q08 2Q05 2Q06 2Q07 2Q08
Short Term Long Term In R$ Net Debt Net Debt / EBITDA
12...the currrent oppotunities scenario
Indebtdness
We are still pursuing a more...
Distribution Long Term Debt Amortization
Other 104.5% - 107.3% CDI
BNDESTJLP + (4.5% - 5.0%)
6%
Foreign Currency
2% 21%10%
500 513
442
41%
39%44%
37%
21%
31%
265
184136
Debentures IGP M + 7 6% 11%
Debentures103.3% - 105% CDI
41%44%36%
2H08 2009 2010 2011 2012 2013 2014 2015
136 11394
IGP-M + 7.6% -11%
13...efficient capital structure
Capital Expenditures
Schedule 2008 - 2009
CAPEX (R$ MM) % CCR 1Q08 2Q08 2008(E) 2009 (E)
AutoBAn 100 34.3 61.3 199.1 149.8
NovaDutra 100 29 4 37 6 88 9 56 0NovaDutra 100 29.4 37.6 88.9 56.0
ViaOeste 100 13.6 9.6 103.2 4.2
Rodonorte 86 8.2 14.9 90.7 74.8
Ponte 100 3.0 3.2 4.4 3.5
Via Lagos 100 0.1 0.2 0.3 0.5
ViaQuatro 58 12.9 0.0 185.6 252.7
Renovias 40 96.8 80.2
Rodoanel 95 2.2 49.0 36.1
Other1 100 1.8 (1.7) 10.9 8.7
Consolidated 103.2 127.4 828.7 666.4
1 – Includes CCR, CCR Mexico, CCR USA, Actua, Engelog, Parques and STP.
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The values esteem for 2008 and 2009 in the concessionaires Rodonorte, ViaQuatro, Renovias e Rodoanel means a 100% of the projetc.
New Businessess
• State of São Paulo Concessions
• Federal Concessions
• Secondary Market
• PPP’s
• LogisticsLogistics
• Mexico and USA
15Brazil is still the main growth driver.
Social and Cultural Responsibility Policy
Tela Brasil Cinema Approximately 352,000 peopleRoda Brasil Circus Over 90,000 people
Culture
Road to Citizenship 10,000 educators and 720,000 childrenI Use de Pedestrian Crossing Over 10,000 children, youngsters and adultsWays to Life Institute Over 1,000 students
EducationRoad to Health Approximately 57,000 truckersHumanized Childbirth Over 6,100 pregnant attended
Education
Lif V l t 744 bl d d t
Health
Life Volunteers 744 blood donatorsI am “Sangue Bom” 320 blood donators
HealthBack Home 1 million of receipts issued per monthRoad to Home 10 million of receipts issued per monthMissing Children 2 millions of receipts issued per month
16Social
Quality Competition Received more than 30 tones of foodGrael Project Helped 320 students of public schoolsSports’ Caravan Benefited over 8,160 children
