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Company Presentation
1November, 2009
Notice
This presentation contains forward-looking statements relating to the prospects of thebusiness, estimates for operating and financial results, and those related to growth prospectsof OHL Brasil, these are merely projections and, as such, are based exclusively on the, y p j , , yexpectations of OHL Brasil’s management concerning the future of the business and itscontinued access to capital to fund the Company’s business plan.
Such forward looking statements depend substantially on changes in market conditionsSuch forward-looking statements depend, substantially, on changes in market conditions,government regulations, competitive pressures, the performance of the Brazilian economy andthe industry and are, therefore, subject to change without prior notice.
2
Agenda
Company Profile
P tf liPortfolio
OHL Brasil’s Results
Traffic
Federal Concessions
New Opportunities
3
Company Profile – OHL Group
NATIONAL
CONSTRUCTION
• Civil Projects
INTERNATIONAL
CONSTRUCTION
• Latin America
ENVIRONMENTAL DEVELOPMENTSCONCESSIONS INDUSTRIAL
• Civil Projects
• Buildings Construction
• Urban Services and Infrastructures
• Latin America
• USA and Canada
• Central Europe
• Eastern Europe
• Sea and brackish water Desalination
• Urban and Industrial Water Purification
• Potable water treatment
• Tourist Complexes
• Malls• Refinery
• Gas
• Petrochemical
• Energy• Potable water treatment Energy
• Lands Movements
• Fire protection systems
TOLL ROADS
• 9
• 1 Argentina
3 Chil
RAILWAYS
• 2 Spain
COMMERCIAL PORTS
• 1 Spain
AIRPORTS
• 1 MexicoMARINAS
• 4 SpainPARKING FACILITIES
• 1 Brazil37 km
30 hectares4 million pass./year
2,431moorages
• 3 Chile
• 5 Mexico
•3 Spain
•1 Peru Ranked 7th private transport infrastructure promoters in the world, ranking PWF1.4 400 km
4
4,400 km
(1) PWF = Public Works Financing
OHL G OHL C i
Company Profile – OHL Group
International Group of construction, concessions and services, listed in the Madrid Stock Exchange since 1991;Founded over 98 years ago and established in 16 countries;
Strategic position in Latin America: Brazil, México e Chile;Global operator of infrastructures: roads, ports, airports and railways;
OHL Group OHL Concesiones
Portfolio of € 59 bn (+55%) in 2008;Unique Spanish builder with financial rating;Compromised with the maintenance of the "Investment Grade" obtained in 2001.
Expertise in Brazil through OHL Brasil;Broad international experience in the developing of efficient capital structure for projects.
Revenue (Euros M) 2005 2008 1H09 Revenue (Euros M) 2005 2008 1H09
Summary of results: Summary of results:
OHL S.A 2,443 100% 4,009 100% 1,969 100% OHL Concessiones 250 100% 542 100% 314 100%National Construction 1,375 56% 1,786 45% 780 40% Argentina 10 4% 11 2% 5 2%International Construction 708 29% 1,429 36% 775 39% Brazil 160 64% 273 50% 173 55%Environment 63 3% 120 3% 59 3% Chile 37 15% 52 10% 30 10%Developments 47 2% 106 3% 27 1% Spain 12 5% 44 8% 26 8%Industrial - 0% 26 1% 14 1% Mexico 30 12% 80 15% 32 10%Concessions 250 10% 542 14% 314 16% Other - 0% 84 15% 48 15%
EBITDA (Euros M) 2005 2008 1H09 EBITDA (Euros M) 2005 2008 1H09OHL S.A 285 100% 608 100% 304 100% OHL Concessiones 152 100% 340 100% 192 100%National Construction 75 26% 121 20% 48 16% Argentina 5 3% 1 0% (1) 0%International Construction 48 17% 111 18% 53 17% Brazil 94 62% 205 60% 109 56%International Construction 48 17% 111 18% 53 17% Brazil 94 62% 205 60% 109 56%Environment 13 5% 19 3% 6 2% Chile 21 14% 33 10% 20 11%Developments (3) -1% 15 2% 6 2% Spain 8 5% 1 0% 14 7%Industrial - 0% 2 0% (1) 0% Mexico 24 16% 118 35% 55 29%Concessions 152 53% 340 56% 192 63% Other - 0% (18) -5% (4) -2%
5
Company Profile – Investment Criteria
• Geographical Scope:
• Strategic Countries like Brazil, Mexico, Chile, Peru and Spain;• Selectively in other geographical areas.
• Interest percentage: We favor majority holdings that confer decision-taking and control powers in each concession.
• Profitability: A 15% target in Euros taking into account the effect of possible parity changes• Profitability: A 15% target in Euros, taking into account the effect of possible parity changes, estimated as inflation differential.
• Equity: Financed with cash flow put up by the Group.
• Debt: Non-recourse and in local currency, free from exchange rate risk.
6
Company Profile – Corporate Structure
100.0%
100.0%
Participes en Brasil S.L.
40 0%
60.0%SPAIN
BRAZIL
40.0%
SAO PAULO STATE TOLL ROADSFEDERAL TOLL ROADS OTHER BUSINESS
100.0%100.0%
100.0%
100 0%
Year - 2008 TotalTotal extension (km) 1,147Toll Plazas 23Vehicle-Equivalents (mn) 141Employees(1) 1,153
Estimated 2009 TotalTotal extension (km) 2,079Toll Plazas 29Vehicle-Equivalents (mn) 285Employees(1) 1,541
100.0%
100.0%
SPR
Net Revenue (R$ mn) 724Adjusted EBITDA (R$ mn) 494
Net Debt (R$ mn)(1) 901
Net Revenue (R$ mn) 389EBITDA (R$ mn) 68Net Debt (R$ mn)(1) 471
7
4.68%
(1) Data from 3Q09.
Company Profile - OHL Concesiones’s Timeline
Brazilian federalC t i / Vi d tBrazilian federal roads
Tren Móstoles a Navalcarnero
Autovía de Aragón
Establishment oh OHL
Concesiones (AECSA 45% and
9% Autovias
94% holding in Autovias
I2000 Acquisitions
Centrovias/ Fumisa
Acquisitions
Awarding of Ruta 69 and Eje Aeropuerto
Awarding of CONMEX and Alicante Port
Intervias Acquisition
OHL Brasil IPO
Amozoc-Perote Acquisition
Vianorte and Toluca Acquisitions
Awarding of Metro Ligero Oeste
Viaducto Bicentenario
Libramiento Puebla
Autopista del Norte
Strategic Definition Development
Mn reais
Consolidation
7Net Revenue - OHL Concesiones (CAGR 01-08 = 34 8%)
1.16
0
1.44
Net Revenue - OHL Concesiones (CAGR 01-08 = 34.8%)EBITDA - OHL Concesiones (CAGR 01-08 = 37.2%)EBITDA - OHL Brasil (CAGR 01-08 = 48.4%)
760
909
93
843 90
8
0
441
604
6 331
462
6 9
62 296
430 52
4
68
179 22
0
34
99 128 23
6
0 33 59 100 18
1 26 2
2000 2001 2002 2003 2004 2005 2006 2007 2008
8
2000 2001 2002 2003 2004 2005 2006 2007 2008
Company Profile – OHL Brasil’s Concessions
The largest company in Brazil in the sector of toll roads concessions in terms of kilometers under management, g ,with 3,226 km;
High Market-Share. 22% in terms of km managed (only highways under concession);highways under concession);
OHL Brasil consolidated its participation in the main economic axes of the country;
There are approximately 35 million people living near our highways;
The states in which we operate hold more than 2/3 of the Brazilian fleet of vehicles.
9
Company Profile – Terms of the Concessions
Portfolio Life: The average remaining term of our concessions’ portfolio is 18 years.
1924 24 24 24 24
9 10 9
11 11 9 111 1 1 1 1
Years pending Years elapsed
10
Portfolio – São Paulo State Concessions
State ConcessionsState Concessions State ConcessionsState ConcessionsOHL Brasil Stake 100 %Length 1,147 kmNo of toll plazas 23 plazasNo. of toll plazas 23 plazasPortfolio Average Life 11.8 yearsEqv. Vehicles - 2008 (mn) 141.1Employees 3Q09 1 153Employees – 3Q09 1,153Average Tariff – 3Q09 R$ 6.07Invest. Estimated – (5 Years) R$ 470 millionNet Debt – 3Q09 (R$ mn) 901 2Net Debt – 3Q09 (R$ mn) 901.2
Revenues, Adjusted EBITDA and Adjusted EBITDA Margin
68 2%
51.6% 50.7%
57.1%59.5%
61.9%64.0%
68.2%
310 360465 507 546
617724
160 183266 302 338
395494
2002 2003 2004 2005 2006 2007 2008
11
2002 2003 2004 2005 2006 2007 2008
Net Revenue (R$mn) Adjusted EBITDA (R$mn) Adjusted EBITDA Margin
Portfolio – Autovias
AutoviasAutovias AutoviasAutoviasOHL Brasil Stake 100 %Length 316 kmNo of toll plazas 5 plazasNo. of toll plazas 5 plazasConcession Ending Aug/2018Eqv. Vehicles - 2008 (mn) 38.0Employees 3Q09 196Employees – 3Q09 196Average Tariff – 3Q09 R$ 5.69Invest. Estimated – (5 Years) R$ 110 millionNet Debt – 3Q09 (R$ mn) 272 5Net Debt – 3Q09 (R$ mn) 272.5
Revenues, Adjusted EBITDA and Adjusted EBITDA Margin
60.9% 60.3%62.2% 62.0%
66.2%68.8%
71.4%
66 7995 107 121
150183
40 48 59 66 80103
131
2002 2003 2004 2005 2006 2007 2008
12
2002 2003 2004 2005 2006 2007 2008
Net Revenue (R$mn) Adjusted EBITDA (R$mn) Adjusted EBITDA Margin
Centrovias
Portfolio – Centrovias
Centrovias CentroviasCentroviasOHL Brasil Stake 100 %Length 218 kmNo of toll plazas 5 plazasNo. of toll plazas 5 plazasConcession Ending Jun/2019Eqv. Vehicles - 2008 (mn) 22.2Employees 3Q09 173Employees – 3Q09 173Average Tariff – 3Q09 R$ 9.11Invest. Estimated – (5 Years) R$ 99 millionNet Debt – 3Q09 (R$ mn) 236 7
Revenues, Adjusted EBITDA and Adjusted EBITDA Margin
Net Debt – 3Q09 (R$ mn) 236.7
71 4%
56.9%
60.1%
65.2%62.8%
64.9% 66.0%
71.4%
70 81108 121 127 140
170
40 4970 76 82 92
121
2002 2003 2004 2005 2006 2007 2008
13
2002 2003 2004 2005 2006 2007 2008
Net Revenue (R$mn) Adjusted EBITDA (R$mn) Adjusted EBITDA Margin
Intervias
Portfolio – Intervias
Intervias InterviasInterviasOHL Brasil Stake 100 %Length 376 kmNo of toll plazas 9 plazasNo. of toll plazas 9 plazasConcession Ending Jan/2029Eqv. Vehicles - 2008 (mn) 51.8Employees 3Q09 542Employees – 3Q09 542Average Tariff – 3Q09 R$ 4.70Invest. Estimated – (5 Years) R$ 130 millionNet Debt – 3Q09 (R$ mn) 345 5
Revenues, Adjusted EBITDA and Adjusted EBITDA Margin
Net Debt – 3Q09 (R$ mn) 345.5
71 5%
207
56.3%
49.0%
63.2%68.0% 68.6% 68.4%
71.5%
102 113144
162 172 184207
58 5691
110 118 126148
2002 2003 2004 2005 2006 2007 2008
14
2002 2003 2004 2005 2006 2007 2008
Net Revenue (R$mn) Adjusted EBITDA (R$mn) Adjusted EBITDA Margin
Vianorte
Portfolio – Vianorte
Vianorte VianorteVianorteOHL Brasil Stake 100 %Length 237 kmNo of toll plazas 4 plazasNo. of toll plazas 4 plazasConcession Ending Mar/2018Eqv. Vehicles - 2008 (mn) 29.1Employees 3Q09 242Employees – 3Q09 242Average Tariff – 3Q09 R$ 6.73Invest. Estimated – (5 Years) R$ 131 millionNet Debt – 3Q09 (R$ mn) 46 5Net Debt – 3Q09 (R$ mn) 46.5
Revenues, Adjusted EBITDA and Adjusted EBITDA Margin57.3%
31.3%35.4%
38.3%42.1%
45.7%51.5%
72 87118 117 126
143164
23 3145 49 58
7494
2002 2003 2004 2005 2006 2007 2008
15
2002 2003 2004 2005 2006 2007 2008
Net Revenue (R$mn) Adjusted EBITDA (R$mn) Adjusted EBITDA Margin
Portfolio – Federal Concessions
Federal ConcessionsFederal Concessions Federal ConcessionsFederal ConcessionsOHL Brasil Stake 100 %Length 2,079 kmNo of toll plazas 29 plazasNo. of toll plazas 29 plazasPortfolio Average Life 24 yearsEmployees – 3Q09 1,541Average Tariff 3Q09 R$ 1 46Average Tariff – 3Q09 R$ 1.46Invest. Estimated – (5 Years) R$ 4,296 millionNet Debt – 3Q09 (R$ mn) 471.6
Revenues, EBITDA and EBITDA Margin (1)
25.2%
41.1% 40.8%
100128 127
25.2%
48
-26
2552 52
-54.7%1Q09 2Q09 3Q09 4Q09E
16(1) 4th Quarter is estimated by OHL Brasil
1Q09 2Q09 3Q09 4Q09E
Net Revenue (R$mn) EBITDA (R$mn) EBITDA Margin
Portfolio – Autopista Planalto Sul
Autopista Planalto SulPlanalto Sul Autopista Planalto SulPlanalto SulOHL Brasil Stake 100 %Length 413 kmNo of toll plazas 5 plazasNo. of toll plazas 5 plazasConcession Ending Feb/2033Employees – 3Q09 144Tariff 3Q09 R$ 2 70Tariff – 3Q09 R$ 2.70Invest. Estimated – (5 Years) R$ 407 millionNet Debt – 3Q09 (R$ mn) 48.1
Capital Structure – 3Q09
• 25.4 km of highway widening.
Main Commitments:
45 5%
39.0% 15.6%
25.4 km of highway widening.• 48.3 km-long 3rd lane.• 10.2 km-long lateral lanes.• Construction of 7 overpasses.• Construction of 9 user service centers.• Renovation of the entire highway.
R$ 25.0 mnR$ 62.6 mn
45.5%
Debt Intercompany Loans Capital
R$ 73.1 mn
17
Portfolio – Autopista Fluminense
Autopista FluminenseFluminense Autopista FluminenseFluminenseOHL Brasil Stake 100 %Length 320 kmNo of toll plazas 5 plazasNo. of toll plazas 5 plazasConcession Ending Feb/2033Employees – 3Q09 216Tariff 3Q09 R$ 2 50Tariff – 3Q09 R$ 2.50Invest. Estimated – (5 Years) R$ 640 millionNet Debt – 3Q09 (R$ mn) 58.5
Capital Structure – 3Q09
• 176 6 km of highway widening
Main Commitments:
45.9%
27.6%26.5%
• 176.6 km of highway widening.• 3.8 km-long lateral lanes.• 28.3 km alternate roads/loops.• Construction of 17 overpasses.• Construction of 7 user service centers.• Implementation or renovation of
i hi t ti
R$ 63.1 mnR$ 65.7 mn
Debt Intercompany Loans Capital
weighing stations.• Renovation of the entire highway.
R$ 109.2 mn
18
Portfolio – Autopista Fernão Dias
Autopista Fernão DiasFernão Dias Autopista Fernão DiasFernão DiasOHL Brasil Stake 100 %Length 562 kmNo of toll plazas 8 plazasNo. of toll plazas 8 plazasConcession Ending Feb/2033Employees – 3Q09 440Tariff 3Q09 R$ 1 10Tariff – 3Q09 R$ 1.10Invest. Estimated – (5 Years) R$ 765 millionNet Debt – 3Q09 (R$ mn) 142.1
Capital Structure – 3Q09
• 88 km-long 3rd lane
Main Commitments:
43.9%
35.8% 20.3%
88 km long 3rd lane.• 94.16 km-long lateral lanes.• 10.3 km alternate roads/loops.• Construction of 50 overpasses.• Construction of 12 user service centers.• Implementation or renovation of
i hi t ti
R$ 68.0 mnR$ 120.2 mn
Debt Intercompany Loans Capital
weighing stations.• Renovation of the entire highway.
R$ 147.4 mn
19
Portfolio – Autopista Régis Bittencourt
Autopista Régis BittencourtRégis Bittencourt Autopista Régis BittencourtRégis BittencourtOHL Brasil Stake 100 %Length 402 kmNo of toll plazas 6 plazasNo. of toll plazas 6 plazasConcession Ending Feb/2033Employees – 3Q09 498Tariff 3Q09 R$ 1 50Tariff – 3Q09 R$ 1.50Invest. Estimated – (5 Years) R$ 1,474 millionNet Debt – 3Q09 (R$ mn) 111.1
Capital Structure – 3Q09
• 30.5 km of highway widening.
Main Commitments:
49.7%
30.6% 19.7%
30.5 km of highway widening.• 104.9 km-long 3rd lane.• 109.6 km-long lateral lanes.• 23.6 km alternate roads/loops.• Construction of 51 overpasses.• Construction of 9 user service centers.
Implementation or renovation of
R$ 84.0mnR$130.4 mn
Debt Intercompany Loans Capital
• Implementation or renovation of weighing stations.• Renovation of the entire highway.
R$ 211.3 mn
20
Portfolio – Autopista Litoral Sul
Autopista Litoral SulLitoral Sul Autopista Litoral SulLitoral SulOHL Brasil Stake 100 %Length 382 kmNo of toll plazas 5 plazasNo. of toll plazas 5 plazasConcession Ending Feb/2033Employees – 3Q09 243Tariff 3Q09 R$ 1 10Tariff – 3Q09 R$ 1.10Invest. Estimated – (5 Years) R$ 1,010 millionNet Debt – 3Q09 (R$ mn) 111.9
• 30 km-long 3rd lane
Capital Structure – 3Q09 Main Commitments:
55 8%
25.6% 18.6%
30 km long 3rd lane.• 79.7 km-long lateral lanes.• 94.7 km alternate roads/loops.• Construction of 39 overpasses.• Construction of 8 user service centers.• Implementation or renovation of
i hi t ti
R$ 51.0 mnR$ 70.0 mn
55.8%
Debt Intercompany Loans Capital
weighing stations.• Renovation of the entire highway
R$ 152.7 mn
21
OHL Brasil’s Results
Net Revenue (in R$ million)Consolidated Traffic Evolution (MN Equiv. Veihc.) Net Revenue (in R$ million)
616725
841
Consolidated Traffic Evolution (MN Equiv. Veihc.)
CAGR 02-08 = 4.30%
129
203
306
268
389430
531(2)
34100 99 105 108 111
120129
103106(2)
58.3%
93159
2002 2003 2004 2005 2006 2007 2008
(2)
9M092002 2003 2004 2005 2006 2007 2008 9M09
(2)
Margin and Adjusted EBITDA (in R$ million) Net Income (in R$ million)
2002 2003 2004 2005 2006 2007 2008
105
9 09
106
State ConcessionsFederal Concessions
47458.7% 57.8%
62.8% 63.4% 64.5% 62.3% 65.4%
50 2%
65.6%(1)
77
99
75
105 106
79.1%
247277
384
474 50.2%
422
(8)
3
25 59(2)
5592
168 348(2)
422
22
(8)
2002 2003 2004 2005 2006 2007 2008 9M09
(1) Adjusted EBITDA Margin Excluding the Federal Concessions.(2) Performed 9M08
2002 2003 2004 2005 2006 2007 2008 9M09
Gross Indebtedness (in R$ million) Leverage Ratio and Net Debt (in R$ million)
OHL Brasil’s Results – Debt Structure
Gross Indebtedness (in R$ million) Leverage Ratio and Net Debt (in R$ million)
1,936
1,657
Indebtness (R$ million)
2.5x2.6x 2.4x
Leverage Ratio and Net Debt (R$ million)
267
739
922
517 518691 690
1,012 1,037
1,425,
9151,174 1,291 1,325
1.3x1.1x 1.0x 1.1x
1.4x
1.9x
110 119 316 33579 102
1,158 1,197735407 399
375 355 933 935517 518
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09Long Term ShortTerm
456 437 416 471652
915
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09N t D bt N t D bt/ Adj t d EBITDA (LTM)
Debt Cost Breakdown Debt Amortization Schedule (in R$ million)
Long Term Short Term Net Debt Net Debt/ Adjusted EBITDA (LTM)
30 7%
88.5%
69.0%
52.7% CDI735.3 695.5
Debt Amortization Schedule (R$ million)
11.1%
30.7%47.0%
0.4% 0.3% 0.3%
3Q08 2Q09 3Q09
TJLP
Other192.9
22.0 11.7
Oct/09 to S /10
Oct/10 to D /10
2011 2012 2013
23
Sep/10 Dec/10
OHL Brasil’s Results – Investment
Estimated (1) CapEx – State (R$ million) Estimated (1) CapEx – Federal (R$ million)
1,235 1,2331,102
1,235 1,233
197 170
528 531
194 570(2)197 170
80 60 60 100
2008 2009E 2010E 2011E 2012E 2013E 2008 2009E 2010E 2011E 2012E 2013E
(2)
110(2)
State Concessions (2009-2013): R$470 million Federal Concessions (2009-2013): R$4.3 billion
24(1) Base September 2009(2) Performed 9M09
Traffic – Comparison Passenger and Commercial Vehicles – OHL x ABCR
Passenger/Light – Vehicles (base 100 = 2002)Passenger/Light Vehicles (base 100 2002)
140
150
160ABCR SP ABCR BRA OHL States
110
120
130
140
80
90
100
Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09
Commercial/Heavy – Vehicles (base 100 = 2002)
150
160ABCR SP ABCR BRA OHL States
110
120
130
140
150
80
90
100
110
Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09
25
Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09
- ABCR Data updated until Sep/09; - OHL Brasil Data updated until Oct/09.
Traffic – OHL State Concessions x Proxies
Industry Payroll (1) vs Passenger Vehicles (base 100 = 2002)Industry Payroll (1) vs. Passenger Vehicles (base 100 = 2002)
140
150
160Ind. Payroll OHL Passenger Vehicles
100
110
120
130
80
90
Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09
Industry Output (1) vs. Commercial Vehicles (base 100 = 2002)
160170180
Ind. Output SP Ind. Output BRA OHL Comercial Vehicles
120130140150160
8090
100110
J 05 J l 05 J 06 J l 06 J 07 J l 07 J 08 J l 08 J 09 J l 09
26(1) Source: IBGE
Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09
- Industry Output updated until Sep/09; Industry Payroll updated until Aug/09;- OHL Brasil data updated until Oct/09
Traffic – Seasonality: Total Vehicles
1,20 ABCR BRA
1,10
1,15
ABCR BRAOHL StatesABCR SPQuarterly Average OHL States
1,00
1,05
,
0 90
0,95
1,00
0,85
0,90
jan feb mar apr may jun jul aug sep oct nov decj p y j j g p
27
Traffic – Seasonality: Passenger / Light Vehicles
1,20ABCR BRA
1,10
1,15ABCR BRAOHL StatesABCR SPQuarterly Average OHL States
1,00
1,05
0 90
0,95
1,00
0,85
0,90
jan feb mar apr may jun jul aug sep oct nov decj y j j g
28
Traffic – Seasonality: Commercial / Heavy Vehicles
1,20 ABCR BRA
1,10
1,15ABCR BRAOHL StatesABCR SPQuarterly Average OHL States
1,00
1,05
,
0 90
0,95
1,00
0,85
0,90
jan feb mar apr may jun jul aug sep oct nov dec
29
Federal Concessions - Bidding Process
AUCTION STRUCTURE:• Brownfield Projects;• Auction based in the lowest tariff and without Government Fee;• Concession period = 25 years;• Maintenance of the economic-financial balance by the proposal’s IRR.
AUCTIONS RESULTS:
Lots Winner # Bids
Toll Tariffs (R$) and Discount to the cap Project IRR (real) Total CapEx (R$
MM)Maximum Winner 2nd Player 3rd Player Winner’s Proposals
2nd Player Estimated
Lot 2 OHL 10 4.188 39.4% 35.2% 27.0% 8.6% 10.1% 735
Lot 4 OHL 8 3.824 41.0% 29.0% 26.0% 8.0% 11.8% 1,056
Lot 5 OHL 15 2.884 65.4% 60.1% 53.2% 8.6% 11.8% 1,345
Lot 6 OHL 13 2.685 49.2% 42.3% 30.8% 8.7% 10.9% 1,902
Lot 7 OHL 17 2.754 62.7% 47.3% 41.5% 8.0% 15.1% 1,378
Lot 1 BRVias 10 4.083 40.0% 27.7% 27.0% 4.1% n/a 715
Lot 3 Acciona 3 4.037 27.2% 4.6% 2.0% 10.0% n/a 524
30
Federal Concessions - Background
Before (1990’s) Federal Auction (2007- 08)
Project Real IRR (Proposals) 17% / 24% 4% / 10%
Country Risk 1 825 bp 277 bp
IPCA and IGP-M 1 9.7% and 8.5% 5.3% and 6.3%
GDP 1 2.5% 4.5%
CDI and TJLP 1 32.3% and 14.2% 15.1% and 8.1%
50 60% C E T 10 d 70% C E T 12 dConditions for BNDES Funding 50-60% CapEx, Tenor: 10 years and Payment: 6 years
70% CapEx, Tenor: 12 years and Payment: 10 years
Sector RiskFirst round for toll road concessions
and Unknown Regulatory More than 10 years of statistics
and Regulatory Environment Environment Tested
Political and Economic Risks Global Economic Crisis, Internal Political Instability, etc Political and Economic Stability
C dit R ti b S&P d Fit h2Credit Rating by S&P and Fitch2 Speculative Grade ‘B+’ (-4) Investment Grade ‘BBB-’ (+1)
31
Federal Concessions – Toll Plazas
Operating Toll Plazas:
Concessionaire Opening - Dec/2008
Opening - Jan/2009
Opening - Feb/2009
Opening - Mar/2009
Opening - May/2009
Opening - June/2009
Opening - Ago/2009
Toll Plazas - Operating
Total Toll Plazas
Planalto Sul 1 1 3 5 5Fluminense 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) – 2Q10
32
Federal Concessions – Net Revenue Estimative (R$ million)
Year 2 or 2009 Proposal Data(1) Potential - 29 Toll Plazas(2) Performed/Estimated ANTT(1)
Proposal Data(1) 24.6% 55.0% 64.8%Potential - 29 Toll Plazas(2) -19.7% 24.4% 32.2%Performed/Estimated -35.5% -19.6% 6.3%ANTT(1) 39 3% 24 4% 5 9%ANTT(1) -39.3% -24.4% -5.9%
156.1148 9
155.6 163.3148.9
117.5 121.1 127.5 134.5
100.2
127.6 126.8
94.7 90.4 94.4 99.1
47.8
1Q09 2Q09 3Q09 4Q09
Proposal Data Potential - 29 Toll Plazas Performed/Estimated ANTT
(1) Proposal and ANTT data adjusted with seasonality index by ABCR (average 2002- 2008). ANTT Revenues: traffic ANTT x current tariffs
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ANTT Revenues: traffic ANTT x current tariffs.(2) Potential data estimated with seasonality index by OHL States Concession (average 2002-2008).
Federal Concessions – Costs Estimative (R$ million)
Year 2 or 2009 Proposal Data(1) Performed/Estimated ANTT(1)
Proposal Data(1) 19.6% -11.7%Performed/Estimated -16.4% -26.2%ANTT(1) 13.3% 35.5%
101 3 101 3 101 3 101 3
89.5 89.5 89.5 89.5
74.0 75.0 75.1 75.1
101.3 101.3 101.3 101.3
1Q09 2Q09 3Q09 4Q09
Proposal Data Performed/Estimated ANTT
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(1) Adjusted data with inflation from July/07 to June/09: 11.04%
Federal Concessions – Financing Plan
Financing the Cape for the first 6 earsR$ 4.8 bn Financing the Capex for the first 6 years;Around 69% of the CapexGrace period of 2 years;Repayment period in 10 years;
R$ 2.3 bn
BN
DES
1p y p y
Cost: TJLP + 200-300 bps margin.Long-term financing is estimated to the beginning of 2010.
Federal CAPEX 6 years R$ 1 bn
Bridge Loan of R$ 1.0 billion with BNDES;R$ 747 million already disbursed to 5 federal concessionaires;M t it f 18 th d t l th 10 0%
R$830 mn
Maturity of 18 months and cost lower than 10.0% p.y;
Cash generation of federal and state concessions;
R$670 mn
OH
L Leverage in State Concessions;
Financing through CCB’s in State Concessions;Currently Leverage Ratio low than 3x (Net Debt/EBITDA);Currently Leverage Ratio low than 3x (Net Debt/EBITDA);
Possibility to increase the leverage ratio;Additional leverage capacity on State concessions due to annualEBITDA th
R$ ???
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EBITDA growth.
(1) BNDES = Brazilian Development Bank, is a federal public company, linked to the Ministry of Development, Industry and Foreign Trade (MDIC).
OHL Brasil maintains its aim to grow and develop the Brazilian infrastructure market. We continue to
New Opportunities
OHL Brasil maintains its aim to grow and develop the Brazilian infrastructure market. We continue toanalyze new opportunities in the sectors.
Federal Highways:
3rd Stage / 1st Phase: BR-040, BR-381 and BR-116 (Minas Gerais State). 2,000 km with 3 lots.Auction estimated to occur 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 auctionNo estimate date for the auction.
State Highways:
Minas Gerais: 16 lots with 7,000 km. Concessions or PPP’s. Estimated to occur in 2010;São Paulo:
2 lots with approximated 600 km of roads on São Paulo State coast. No estimate date forthe auction;Rodoanel: South, East and North stretches. No estimate date for the auction.
Airports:
Galeão (Rio de Janeiro) and Viracopos (Campinas-SP): The concessions of these two airportsare expected to privately-owned enterprise.PPP - Aeroporto Internacional de São Gonçalo do Amarante (Natal/RN). Estimated to occourfirst half 2010
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first half 2010.
Company Presentation
Contacts OHL Brasil S.A.:
Francisco Leonardo Moura da CostaCFO and IR Director
Rua Joaquim Floriano, 913 – 6º andarItaim Bibi – São Paulo – SP CFO and IR Director
Alessandro Scotoni LevyIR [email protected]
Itaim Bibi – São Paulo – SPCEP 04534-013Fone.: (+55 11) 3074-2404
Visit our website: [email protected]
Vinicius Romboli NarcizoInvestment [email protected]
Visit our website:
www.ohlbrasil.com.br/ir
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Murilo TariniIR [email protected], 2009