apimec 4 q04 results
DESCRIPTION
TRANSCRIPT
2
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, including currency fluctuations, 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 these materials.
Disclaimer
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Highlights
2004• Sucessful Secondary Offering
• Traffic Increase & Margins improvement
• Corporate Governance Nucleous – Dom Crabral Foundation
• Financial PolicyDividends: R$2,00/share(Sept-04+Apr-05), pay-out of 76% 04 Net Profit
4Q• Resumption of bidding process for federal roads
• Acquisition of ViaOeste concesionaire
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Financials
Net Revenues x
Total Costs / Net. Rev.
EBITDA & margin
8701.000
1.139
1.463
331398
64%
68%71%
60%65%65%
0
200
400
600
800
1.000
1.200
1.400
1.600
2001 2002 2003 2004 4Q03 4Q04
441472
571
759
170219
52%50%
47%
55%51%51%
0
100
200
300
400
500
600
700
800
2001 2002 2003 2004 4Q03 4Q04
R$
mill
ion
R$
mill
ion
CAGR 18.9%
CAGR 19.8%
20.3%28.8%
Total Cost = Cost of Services Rendered + Administratives Expenses
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EBIT & margin Net Income
(119)
183
263
5797
(13)
(150)(100)
(50)
050
100150
200250300
2001 2002 2003 2004 4Q03 4Q04
301 287360
531
115160
35%29%
32% 36% 35%40%
0
100
200
300
400
500
600
2001 2002 2003 2004 4Q03 4Q04
R$m
illio
n
R$
mill
ion
CAGR 20.8%
39.3%
Financials
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Revenues Performance & Breakdown
Operating Revenues
Toll CollectionRevenues by Concession
96%96%
64.4%73.4%
35.6%26.6%
2004 2003
Cash
Eletronic
Via Lagos2%
Ponte5%
NovaDutra34%
Rodonorte12%
AutoBAn47%
-
200
400
600
800
1.000
1.200
1.400
1.600
1.800
2001 2002 2003 2004 4Q03 4Q04
Ancillary
STP
Toll
R$
mill
ion
9321.074
1.230
1.568
357428
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Traffic – Vehicle Equivalent
Evolution annual/quarterly
10.6%
6.3%
-3.5%
-1.2%
14.9%
AutoBAn NovaDutra
Rodonorte Ponte
Via Lagos
4Q
215230 233
251
61 64
0
50
100
150
200
250
300
2001 2002 2003 2004 4Q03 4Q04
R$
mill
ion
CAGR 5.3%
5.0%
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Tariffs
Tariffs – 4Q04
13.8%
10.4%
15.9%
7.4% 7.9%
AutoBAn NovaDutra Rodonorte Ponte Via Lagos
4Q
Rodonorte’s 04 annual readjustment, due on December 1, was effective by January 31, supported by an injunction ruled by the Regional Federal Court of the Porto Alegre city.
Consolidated average toll tariff (toll revenues / vehicle equivalent) was up 14.1
percent.
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Total Costs Breakdown
71.4% 68.4% 59.8%65.2%63.7%
25% 26% 24% 24% 24%
19% 20% 21% 20% 21%
33% 30% 33% 29% 31%
11% 10% 10% 9% 10%
12% 14% 13% 17% 15%
2002 2003 2004 4Q03 4Q04
D&A Concession Costs Third-party Services Personnel Others
Total Costs as a percentage of Net Revenues
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Capex
Note: Figure for ficasl year 2005(E) and 2006(E) includes inflation adjustment of 8.0% for 2005 and 7.0% for 2006 (CCR`s internal assumption).
Current portfolio requirements
526
318
222190
383
304
257%
399%
148%84%
0
100
200
300
400
500
600
2001 2002 2003 2004 2005 (E) 2006 (E)0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
Capex Ebitda/Capex
R$
mill
ion
12
IndebtnessDe-leveraging Trend
Gross Debt Net Debt
US$ denominated debt: 36.3% hedged
1.405
R$
mill
ion
73%
48%59%59%
0200400600800
1.0001.2001.4001.600
2001 2002 2003 2004
Short-term Long-term R$ denominated
1.508
1.2241.136
1.338 1.3221.127
622
0,82
1,97
2,803,03
0200400600800
1.0001.2001.4001.600
2001 2002 2003 2004
Net Consolidated Debt
Net Consolidated Debt / EBITDA-LTM
R$
mill
ion
13
228
188 186 183
150 147
53
0
50
100
150
200
250
2005 2006 2007 2008 2009 2010 After 2010
R$
mill
ion
Debt Amortization Schedule
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Debt ProfieSource of Funds
3%
42%
29%
26%
Others (106.75% CDI)
Debêntures(IGP-M + 11%)(IGP-M + 9.5%)
BID e IFC (Libor + 4.45%)
BNDES (TJLP + 5.0%)
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Stock Performance
ADT Volume R$ 6 million – last 90 trading days
Ibovespa 106.9%
CCRO3 221.9%
feb/02 -feb/05
0
5.000
10.000
15.000
20.000
25.000
1/2/
0219
/3/0
22/
5/02
14/6
/02
29/7
/02
9/9/
0221
/10/
023/
12/0
220
/1/0
35/
3/03
16/4
/03
2/6/
0316
/7/0
327
/8/0
38/
10/0
319
/11/
036/
1/04
17/2
/04
1/4/
0417
/5/0
429
/6/0
411
/8/0
423
/9/0
48/
11/0
421
/12/
0404
/02/
05
Vol
ume
R$
(000
)
-100,00%
-50,00%
0,00%
50,00%
100,00%
150,00%
200,00%
250,00%
300,00%
2004
CCRO3 111.3%
Ibovespa 16.7%
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Rodonorte – Judicial Proceedings Current Status
Political Driven Issues
Termination by Public Interest – Granting Authority audit process to
calculate the concessionaire indemnification amount, was interrupted by a
Regional Federal Court injunction
Expropriation – The State Government decree was suspended by the
Regional Federal Court of Brasilia
Annual Toll Reajustment2003 – due in December 1, it was effective in July 3, supported by Superior
Court of Justice decision. Concessionaire will seek contract rebalancing
2004 – due in December 1, it was effective in January 31, supported by na
injunction ruled by Regional Federal Court of Porto Alegre
Administrative – fine
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Key Factors
• ROE not lower than Ke
• Majority shareholder stake
• Location in densely populated areas
• Basic financing structure – 60% debt, 20% own cash generation and a 20% capital increase from CCR
Growth Perspectives
19
New Business – Federal Highways
Source: DNER
7,785km to be privatized
DistanceProgram (km)
2nd phase - Federal 3,038 3rd phase - Federal 4,747
Total 7,785
Brazil
RecifePernambuco
Mato Grosso
Goiás
Espírito Santo
Rio de Janeiro
Paraná
SantaCatarina
Rio Grandedo Sul
Vitória
Rio de JaneiroSão Paulo
Curitiba
Florianópolis
CuiabáBrasília
Uberlândia
São Paulo
Mato Grossodo Sul
Minas Gerais
Campo Grande
Source : ABCR (Brazilian Association of Highway Concessionaires)
Existing CCR Concessions
2nd phase - Federal
3th phase - Federal
Porto Alegre
Belo Horizonte
Goiânia
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7 Roads Lenght (km)
Dom Pedro I 200,94
Ayrton Senna / Carvalho Pinto 127,52
Marechal Rondon - Leste 363,46
Marechal Rondon - Oeste 252,44
Raposo Tavares - Leste 181,00
Raposo Tavares - Oeste 206,73
João Ribeiro de Barros 339,67
Euclides da Cunha 186,06
TOTAL 1.857,82
São paulo State Toll Road Concession Program
New Business – São Paulo Highways
1,857km to be privatized
Investor [email protected]
Ricardo Froes – [email protected]: 55 (11) 3048-5930
Arthur Piotto Filho - [email protected]: 55 (11) 3048-5932
Adress: Av. Chedid Jafet 222 bloco B – 5º floor
Zip Code 04551-065 São Paulo – SP Brazil
www.ccrnet.com.br
BOVESPA: CCRO3Bloomberg: CCRO3 BZ
Reuters: CCRO3.SA