2Q07 Earnings
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Forward Looking Statement
This presentation contains certain statements that are neither reported financial results 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 the statements. Many of these risks and uncertainties relate to factors that are beyond CCR’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators, the Company's ability to continue to obtain sufficient financing to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, inflation and consumer confidence, on a global, regional or national basis.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. CCR does not undertake any obligation to publicly release any revisions to these forward looking statements to reflect events or circumstances after the date of this presentation.
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Highlights
Results
Outlook
Social Responsibility and Datafolha Research
Agenda
4
Highlights
Operating
6.3% traffic increase in 2Q07 and 5.5% in 1H07.
Net Revenue totaled R$ 555.7 million (+8.4%) in the 2Q07 and R$ 1,101.6 million (+7.2%) in 1H07.
Net Income reached R$ 121.8 million (+56.1%) in the 2Q07 and R$ 268.6 million (+38.9%) in 1H07.
34.7% increase in AVI users, totaling 807Qh.
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Corporative
On May 31, 2007, CCR informed its shareholders and the market that, following the decision of the Board of Directors of “Northwest Parkway Public Highway Authority”, the concession agreement with the consortium formed by CCR (10%) and Brisa – Autoestradas de Portugal S.A. (90%) was approved on a preliminary basis.
On August 9, 2007, CCR approved the prepayment of dividends for the fiscal year 2007 proposed by the management, in the amount of R$ 0.82 per share, totaling R$ 330.5 million, to be paid on August 31, 2007.
Highlights
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Results
...traffic and reduction of operating costs.
2Q07’s results reflect a combination of factors...
(1) Total Cost + Administrative Expenses(2) Includes prepaid expenses
R$ MillionFinancial Highlights 2Q06 2Q07 Ch. % 1H06 1H07 Ch. %
Net Revenue 512.8 555.7 8.4% 1,027.4 1,101.6 7.2%
Total Costs (1) (338.2) (313.9) -7.2% (639.4) (599.2) -6.3%
EBIT 174.7 241.8 38.4% 388.0 502.4 29.5%
EBIT Margin 34.1% 43.5% +9.4 p.p. 37.8% 45.6% +7.8 p.p.
Depreciation and Amortization (2) 87.9 84.2 -4.1% 173.2 164.5 -5.0%
EBITDA 262.6 326.1 24.2% 561.1 666.9 18.8%
EBITDA Margin 51.2% 58.7% +7.5 p.p. 54.6% 60.5% +5.9 p.p.
Net Financial Result (54.1) (45.1) -16.6% (94.3) (88.3) -6.4%
Net Income 78.0 121.8 56.1% 193.4 268.6 38.9%
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Operating Margins Evolution
(*) Pro forma figures, excludes concession fees
EBITDA x EBITDA Margin
Adjusted EBITDA x Adjusted EBITDA Margin *
108 107 130 128 122 119161 170 174 151
216 218 224259
310 309 299263
322 323 341 326
46% 46% 49% 47% 48% 47%53% 51% 52%
44%55% 55% 54% 55% 60% 56% 58%
51%59% 57%
62% 59%
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
138 137 163 162 155 152203
266 269 276319
375 374 362326
386323 341 368
196218211 68%72%
68% 70%64%
70%
57%62% 66%
59% 59% 62% 60% 62% 60% 67% 64% 66% 57%
68% 68% 67%
1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
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Toll96,2%
STP 1.7% Other 2.0%
Revenues Breakdown
96.3%
Concession Breakdown
AutoBAn37%
NovaDutra
27%
ViaOeste 17%
Rodonorte11%
Ponte4%
Via Lagos
3%
Other2%
Revenues
Toll Payment Method
64.5%49.9%
33.8% 35.5% 50.1%
2Q04 2Q05 2Q06 2Q07
EletronicCash
47.1%
52.9%66.2%
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Traffic – Quarterly Evolution
Quarterly Historical Evolution(Equivalent Vehicles – million)
2Q07 x 2Q06 – Concession Breakdown(Equivalent Vehicles)
AutoBAn NovaDutra Rodonorte Ponte Via Lagos ViaOeste
3.3%
8.5%
6.9%
5.7%7.0%
4.5%
125133
12697
2Q04 2Q05 2Q06 2Q07
+ 6.3%
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Monthly Variable Average - 12 Months Period: dec/98 - jun/07
In units x 1,000AutoBAn
Nova Dutra
Rodonorte
Ponte
Via Lagos
Via Oeste
5000
0
17000
0
11000
0
2500
1500
500
0
5000
0
Traffic – Equivalent Vehicles
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72% 61%
66%
56%
338 314
341471
556513
288245
22%
35%
19%
13%11%
25%
22%
22%12%
14%
17%
25%
18%
12%14%
20%22%
23% 25%
22%
14%15%
26%25%
Net Revenue & Total Costs
Operating Efficiency is...
... Continuous focus for CCR’s management.
Other: insurance, rent, marketing, travel, electronic payment and routine maintenance
Third-Party Services: auditing, consulting and shared services.
D&A
Serv. Terceiros
Outorga
Pessoal
Outros
Receita Líquida
R$
(mill
ion)
2Q04 2Q05 2Q06 2Q07
D&A
Third-Party
Concession Fee
Payroll
Other
Net Revenue
12
Gross Debt
Indebtedness
...allows great flexibility to participate in new bids.
Net Debt
R$
(mill
ion) 677
1,1231,160
1,103
0.980.84
1.22
1.06
2Q04 2Q05 2Q06 2Q07
1,622
2Q04 2Q05 2Q06 2Q07
67%
1,195
R$
(mill
ion)
1,347 1,484
100%
77%
100%
100% In Local currency
Current unleveraged balance sheet...
Short Term Long Term In R$ Net Debt Net Debt / EBITDA LTM
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Indebtedness
...to the Company’s growth nor to refinancing its current portfolio.
Source of Funding Long Term Debt Amortization
Sources of funding are neither a growth boundary...
R$
(mill
ion)
IGP-M + 9.5%-11%
26%
103.3%-105% CDI
30%
104.5%-107.3% CDI
28%
TJLP + 4.5%-5.5%
16%
OtherBNDES
Debentures Debentures
327
617
247200
85 55
2008 2009 2010 2011 2012 After 2012 2007
92
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Capital Expenditures
CAPEX Schedule
CAPEX (R$ MM) 2Q06 2Q07 2007(E) 2008 (E)AutoBAn 45.8 86.8 287.5 234.8NovaDutra 15.3 16.1 153.9 138.5ViaOeste 33.2 59.8 193.2 33.0Rodonorte 4.7 3.5 42.3 62.5Ponte 1.7 3.8 32.2 7.4Via Lagos 2.0 0.7 4.8 2.7ViaQuatro 0.0 0.1 75.9 59.5Other 1 (1.2) 3.6 9.3 8.8Consolidated 101.5 174.4 799.1 547.1(1) Includes CCR, CCR Mexico, Actua, Engelog, Parques and STP
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New Businesses
Brazil is still the main growth driver.
State of São Paulo Concessions
Federal Concessions
Secondary Market
PPP`s
México and United States
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Social Responsibility and Datafolha Research
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Culture Policy
The Following cultural projects are being sponsored by CCR in 2007:
•Roda Brasil Circus, CineTela Brasil, over 90,000 people• Cine Tela Brasil• Theater: Fica Comigo Esta Noite• Jogando no Quintal•São José dos Campos Symphonic Orchestra• Revelando o Vale• Festival Vale do Café•Brasília International Cinema Festival• Fenata - Ponta Grossa National TheaterFestival
... Over 500,000 people were direct beneficiated
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Social Responsibility: since the beginning, 700,000 people were benefited
• Road to Citizenship: Traffic education classes for children
• Road to Health: Providing access to healthcare services for truckers;
• “On the right hand program”: WCF and CCR jointly fighting against children sexual
exploration
•Humanized Childbirth: Assistance to pregnant women during prenatal period;
• I am “Sangue Bom” and Life Volunteers: Blood donation
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Road Concessions - 2007
Continuity of the Concession Program – Favorable - 2007(spontaneous and single, in %)
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Concessionaire EvaluationGeneral Evaluation on the Concessionaire Performance (in %) (great + good)
74
89 90 8779
8488
777473
8781
0
10
20
30
40
50
60
70
80
90
100
NovaDutra AutoBAn Ponte S.A ViaLagos RodoNorte ViaOeste
2005 2007
Concessionaires Image – 2005 X 2007
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Was it worth to pay the toll? Yes or Not?
Yes, it was