apimec 2 q06 results
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2Q06 Results
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Disclaimer
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 notundertake any obligation to publicly release any revisions to these forward lookingstatements to reflect events or circumstances after the date of this presentation.
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Highlights
Results
Outlook
Agenda
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Highlights
Operating
CorporateEntrance of CCR in the IBOVESPA composing the theoretical portfolio with
a 0.815% participation in mar/06.
Prepayment of the total amount of foreign currency debt.
Net Income reached R$ 512.8 million (+8.8%)
Number of AVI users increased by 25.3%, reaching 599 thousand
users.
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On August 10th 2006, was approved an earlier dividends payout of R$ 0.63 per share, totaling R$ 254.0 million to be paid out on August 31st 2006.
Our proposal was indicated as the best ranked in the exploration term of the São Paulo Subway’s line 4, our first project out of the road sector, what enforces the assertive decision taken last February related to the expansion of CCR corporate object.
Sign of agreement with Brisa related to the North American and Canadian markets.
Pre-qualification to the Bid for the Saltillo-Monterey project, in Mexico.
Highlights
Subsequent Events
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Results
(1) Cost of Services + Administrative Expenses
(2) Including Prepaid Expenses
...traffic, operating costs and financial results.
The quarter result was impacted by a combination of factors...
R$ Million 2Q05 2Q06 Var % 1S05 1S06 Var %Net Revenues 471.4 512.8 8.8% 883.1 1,027.4 16.3%Total Costs (1) (287.9) (338.2) 17.5% (539.8) (639.4) 18.5%EBIT 183.5 174.7 -4.8% 343.2 388.0 13.0%EBIT Margin 38.9% 34.1% -4.8 p.p 38.9% 37.8% -1.1 p.pDepreciation & Amortization (2) 75.6 87.8 16.2% 139.8 173.2 23.9%EBITDA 259.0 262.6 1.4% 483.0 561.1 16.2%EBITDA Margin 54.9% 51.2% -3.7 p.p. 54.7% 54.6% -0.1 p.p.Net Financial Result (23.0) (54.0) 134.5% (72.9) (94.3) 29.3%Net Income 97.9 78.0 -20.3% 165.6 193.4 16.8%
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EBITDA x EBITDA Margin
96 119 13888 108 107 130 128 122 119
161 170 174151
216 218 224259
310 309 299263
44%50% 53% 55%46% 46% 49% 47% 48% 47%
53% 51% 52%44%
55% 55% 54% 55%60% 56% 58%
51%
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06
63 5482
10265 60
82 80 70 66
109 115 11895
158 160 160183
229 227 213
175
33% 27% 37%40%
28% 26%31% 29% 28% 26%
36% 35% 36%28%
40% 40%39% 39%
44% 41% 41%34%
1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06
EBIT x EBIT Margin
Operating Margins Evolution
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Revenues
Revenues Breakdown
Toll Fee Payment Breakdown
Breakdown by Concession
24% 34% 36% 47%
76% 66% 65% 53%
2Q03 2Q04 2Q05 2Q06
CashEletronic
AutoBAn
OtherViaOeste
Lagos
Rodonorte
NovaDutra
26%
38%17%
11%
Ponte 4%
2%
2%
Toll Fee96.3%
STP 1.4% Other 2.3%
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Traffic
Historical Quarterly Evolution (Equivalent Vehicles – million)
2Q06 x 2Q05 – Evolution per Concession(Equivalent Vehicles – like for like)
56 61
76 75
2Q03 2Q04 2Q05 2Q06 -0.7% -1.1%-0.4%
-4.1%
-1.9%
3.8%
AutoBan NovaDutra ViaLagos Rodonorte Ponte
ViaOeste
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...along with CCR expectations.
Net Revenues & Total Costs
Total Costs as a % of Net Revenues
1T03 1T04 1T05 1T06
27% 22% 25% 25%
29% 35%22%
23%19%19%
22%20%
12%12%
17%18%
13%11%
14%
14%254
341
471
513
188245
288
33874
%
72 %
62 %
66 %
R$
(mill
ion)
2Q03 2Q04 2Q05 2Q06
D&A
Third Party
Concession
Payroll
Other
Net Revenues
Other: insurances, rents, routine conservation, marketing and trips.
Third Party: auditing, consulting and shared services.
Despite the quarterly evolution the long term trend withstands...
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Gross Net
Indebtedness
In this quarter, we highlight the prepayment of our foreign currency debt.
1,484
R$
(mill
lion)
1,297 1,1951,347
2T03 2T04 2T05 2T06
56%
67%
77%100%
Long Term % in R$Short TermR
$ (m
illio
n)
677
1,123 1,1601,151
0.98
1.22
1.06
2.32
2T03 2T04 2T05 2T06
Net Debt Net Debt / EBITDA LTM
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Indebtedness
... or for rolling on the current portfolio of debt.
Financing Sources Debt Amortization*
BNDESTJLP + 5%29%
Other104.5% - 106.4% of CDI
42%
Debentures105% of CDI
11%Debentures
IGP-M 9.5% - 11%
18%
* Pro-forma values
Sources of funds are no longer a restrain for the Company’s growth
R$
(mill
ion)
278
574
212 192144
8449
217 232348 334 304
2006 2007 2008 2009 2010 Após 2010
After AutoBAn IssueBefore AutoBAn Issue
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Capital Expenditures
CAPEX (R$ MM) 2Q06 1S06 2006 (E) 2007(E)AutoBAn 45.8 86.5 225.3 68.1NovaDutra 15.3 31.2 90.6 96.1Rodonorte 4.7 14.6 29.9 36.4Ponte 1.7 7.0 14.1 14.8Via Lagos 2.0 3.6 3.4 4.5ViaOeste 33.2 68.8 187.0 43.4Other 1 (1.2) (0.1) 11.9 8.8Consolidated 101.5 211.5 562.2 272.1(1) Includes CCR, Actua, Engelog and STP
The capex commitments follow as expected in the contracts.
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New Businesses
Brazil continues the main growth driver. However, CCR will look for other markets.
New Federal Concessions
New Concessions in the State of São Paulo
São Paulo Subway
Secondary Market
Mexico, Chile, United States and Canada
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São Paulo Subway – Line 4
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Overview
Hig
ien.
Paul
ista
Osc
ar
Frei
re
Fr. C
outin
ho
Faria
Lim
a
But
antã
Pinh
eiro
s
Rep
úblic
a
Luz
Mor
umbi
Vila
Son
ia
FASE I FASE II FANS Phase I operational streatch 8.9 km
12.9 km0.9 km 0.5 km
Patio V. Sonia
The exploration term for exploring passenger transportation of São Paulo Yellow Line 4 is 30 years. The extension is of 12.8 km andcrosses Butantã, Pinheiros, Faria Lima, Paulista, República and Luz stations (Phase I); Fradique Coutinho, Oscar Freire, Higienópolis. Maintenance station Vila Sônia and systems (Phase II).
The operation will be complemented from Vila Sônia to Taboão daSerra, through Bus with no additional tariff.
São Paulo Subway – Line 4
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Main FeaturesConcessionaire’s Capital Expenditures: Rolling material and signalization systems (courtyard control; central control and supervision, voice and data mobile communication);
Estimated Capex:
Phase 1: US$ 234 million
Phase 2: US$ 211 million
Source of Revenues: Tariff, Other Revenues and Counter payment
Tariff: R$ 2.08 (February 2005)
Pass: Line 4: 100% tariff
Pass: Integration subway/CPTM: 50% tariff
Annual Readjustment: 50 IGPM + 50% IPC (15 years) – after that 100% IPC
Centralized Collecting System
São Paulo Subway – Line 4
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Main Features (cont.)
Counter payment from Granting Authority in the Amount of R$ 75 million
Guarantor of Counter payment, fines and indemnification – CPP
Share demand risk – up to 10% is a concessionaire risk. Above 10% is a shared risk (profit and loss)
Consortium: CCR – 68%, RATP – 1%, BRT – 1% and Montgomery –30%
São Paulo Subway – Line 4
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Main CharacteristicsObject – Competition to built, operate and explore the “LibramientoNorponiente de Saltillo y la Autopista Saltillo-Monterrey”.
Extension: 95 km (14 km - existent and 81 km – to be built).
Handing out of proposals: 18/09/2006
Concession term: 30 years.
Capex: US$ 260 million (estimate)
Consortium: CCR - 45%, La Nacional – 45% and Andrade Gutierrez –10%.
Mexico
Part of the axis West – East which interconnects the Mazatlán(Pacific) point to the Matamoros Harbor (Golf of México) and to the city of Nuevo Laredo (Texas border).
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Social Responsibility
Social Responsibility and Cultural Policy
VidaBAnSorrisoBAnRodopacTruck Driver HealthHumanized ChildbirthI Am Sangue BomVolunteers of Life
HEALTH
Ways to Life InstituteRoad to CitizenshipI Use Pedestrian CrossingProject School
EDUCATION
Arboretum ProjectSow this Idea
ENVIRONMENT
Back HomeSOCIAL
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Cultural Policy
Overall Strategy
The analysis of the cultural profile of each region in which it acts made the CCR System prioritize the sponsorship of projects which...
• Have local importance, for it is a way to value the regional production and to incentive the cultural activity of the cities located along the roads.
• Have a potential of itinerancy, for it helps fulfill the cultural lack that remarks the majority of the median and small towns. The itinerant projects must be gratuitous and be able to go through all towns.
This policy is complemented by the sponsorship of specific actions in the large urban centers, mainly in São Paulo, headquarter of the company.
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Sorts of Projects
Theater Festival of São José dos Campos (SP)Coffee Valley (Vassouras-RJ)Theater Festival of Ponta Grossa (PR)Cinema and Environment Festival of Guararema (SP)Paraná GuideMunicipal Symphony of São José dos Campos (SP)
In Large Urban CentersExposition A Alma Secreta - Pinacoteca (SP)Exposition Poética da Forma – (RJ)Theatric Play Guess Who Comes to Pray (SP)Movies Boleiros 2 and União FraternaTruck-drivers DocumentaryInternational Piano Content of Villa Lobos - OSESP
LocalsIn 2005 the following actions were sponsored:
Cultural Policy
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Itinerant Project“Cine Tela Brasil” and “Circo Roda Brasil”
Cultural Policy
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Ricardo Froes - [email protected]: 55 (11) 3048-5921
Arthur Piotto Filho - [email protected]: 55 (11) 3048-5932
BOVESPA: CCRO3Bloomberg: CCRO3 BZ
Reuters: CCRO3.SA
Investor Relations
2Q06 Results