The document provides a summary of OHL Brasil's 4Q09 earnings conference call. It discusses traffic performance, toll tariffs, net revenue, EBITDA margins, and financial results for OHL Brasil's state and federal highway concessions. Key points include a 9.4% increase in net revenue for state concessions and an 8% increase for federal concessions. EBITDA margins were 61.6% in 4Q09. Financial expenses increased due to higher BNDES loans but the net financial result improved 25.3% from the previous quarter. Gross indebtedness was R$1,936 million and leverage ratios remained stable.
2. Notice
This presentation contains forward-looking statements relating to the prospects of the
business, estimates for operating and financial results, and those related to growth prospects
of OHL Brasil, these are merely projections and, as such, are based exclusively on the
, y p j , , y
expectations of OHL Brasil’s management concerning the future of the business and its
continued access to capital to fund the Company’s business plan.
Such forward looking statements depend substantially on changes in market conditions
forward-looking depend, substantially, conditions,
government regulations, competitive pressures, the performance of the Brazilian economy and
the industry and are, therefore, subject to change without prior notice.
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3. Traffic Performance and Average Toll Tariff – State Concessions
Traffic Performance (in ‘000 equiv.-vehicle) Average Toll Tariff (R$)
+5.1%
+1.1%
+3.9%
37,084
37 084 37,474
37 474 +0.3%
+0 3%
35,640
7,580 7,579 Evolução Tarifa Média (R$)
7,284
13,134
13 134 13,751
13 751 13,797
13 797
5,829 6,105 6.07 6.09
5,686 5.86
9,536
9 536 9,923
9 923 9,994
9 994
4Q08 3Q09 4Q09 4Q08 3Q09 4Q09
Autovias Centrovias Intervias Vianorte
Tariff Adjustment of 3.64% in July 01, 2009
based on the accumulated variation of the
IGP-M from June/2008 to May/2009.
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4. Traffic and Tariff – Federal Concessions
Toll Paying
Toll-Paying Traffic – Federal Concessions 4Q09:
Var% Var%
Equivalent-Vehicles 4Q09 3Q09 4Q08
4Q09/3Q09 4Q09/4Q08
Planalto Sul 6,437,879 6,265,555 128,096 2.8% n.r.
Fluminense
Fl i 10,204,164
10 204 164 8,311,200
8 311 200 - 22.8%
22 8% n.a.
Fernão Dias 27,066,228 25,123,637 638,639 7.7% n.r.
Régis Bittencourt 32,732,688 31,927,999 230,922 2.5% n.r.
Litoral Sul 26,330,909 23,629,091 - 11.4% n.a.
Total - Federal Concessions: 102,771,868 95,257,482 997,657 7.9% n.r.
Tariff Adjustment: In accordance with the contracts for the federal concessions, on December 19,
2009, the basic toll for the Planalto Sul concession was increased to R$2.90, based on the criterion of
rounding up the first decimal place and the cumulative variation in the IPCA inflation index from
December 2008 to November 2009 (+4.22%).
The tolls at the Fernão Dias and Régis Bittencourt concessions were not increased due to the
rounding criteria for the basic toll stated in the concession contracts
g
Average Toll Tariff Var% Var%
4Q09 3Q09 4Q08
(in R$/Equiv-Vehicles) 4Q09/3Q09 4Q09/4Q08
Planalto Sul 2.73 2.70 2.70 1.1% 1.1%
Fluminense 2.50 2.50 - 0.0% n.a.
Fernão Dias 1.10 1.10 1.10 0.0% 0.0%
Régis Bittencourt 1.50 1.50 1.50 0.0% 0.0%
Litoral Sul 1.10 1.10 - 0.0% n.a.
Average - Federal Concessions: 1.47 1.46 1.40 0.7% 5.0%
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5. Net Revenue – Evolution per Concessionaire
Net Services Revenue Var% Var% Var%
4Q09 3Q09 4Q08 2009 2008
(R$ thousand) 4Q09/3Q09 4Q09/4Q08 YoY
Autovias 52,608 51,989 48,308 1.2% 8.9% 194,585 183,092 6.3%
Centrovias 51,168 48,962 46,180 4.5% 10.8% 186,635 169,629 10.0%
Intervias 59,984 59,910 55,140 0.1% 8.8% 221,087 206,815 6.9%
Vianorte 46,904 46,843 42,980 0.1% 9.1% 173,315 164,159 5.6%
Total - State Concessions: 210,664 207,704 192,608 1.4% 9.4% 775,622 723,695 7.2%
Planalto Sul 16,024 15,497 319 3.4% n.a. 55,695 319 n.r.
Fluminense 22,819 18,805 - 21.3% n.a. 61,189 - n.a.
Fernão Dias 27,328 25,390 650 7.6% n.a. 87,388 650 n.r.
Régis Bittencourt 44,868 43,700 318 2.7% n.a. 139,800 318 n.r.
Litoral Sul 26,776 24,206 - 10.6% n.a. 69,315 - n.a.
Total - Federal Concessions: 137,815 127,598 1,287 8.0% n.a. 413,387 1,287 n.r.
Total: 348,479 335,302 193,895 3.9% 79.7% 1,189,009 724,982 64.0%
Electronic Toll Collection:
Revenues through electronic collections (AVI System) in the state concession toll
plazas in 4Q09 represented 53 8% compared to 53 7% in 3Q09 and 51 4% in 4Q08;
53.8% 53.7% 51.4%
For the federal concessions the average percentage of electronic collections is
currently at 30 2% against 29 6% in the 3Q09
30.2%, 29.6% 3Q09.
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7. EBITDA – Federal Concessions Only
EBITDA- Federal Concessions
EBITDA F d lC i Var%
V %
4Q09 3Q09
(R$ thousand) 4Q09/3Q09
Net Services Revenue 137,815 127,598 8.0%
Costs and Service Expenses (76,465) (75,112) 1.8%
Costs of Services (Ex Amort & Depre )
(Ex. Amort. Depre.) (59,166)
(59 166) (55,311)
(55 311) 7.0%
7 0%
Grant Authority Costs (7,000) (8,757) -20.1%
General & Administrative Expenses (Ex. Amort. & Depre.) (10,088) (10,446) -3.4%
Directors' Compensation (725) (677) 7.1%
Tax Expenses 205 (1) n.r.
nr
Other Revenues/ Expenses 309 80 286.3%
EBITDA 61,350 52,486 16.9%
EBITDA Margin (%) 44.5% 41.1%
The following two factors explain the increase of EBITDA in our Federal Concessions
during this quarter:
Increase in Net Revenues in the period due to the operation of 28 out of the 29 toll
plazas throughout the 4Q09.
Increase of 1.8% in Operating Costs and Expenses quarter on quarter, basically due to:
(i) the increase of 7.0% in "Operating Costs (Ex Amortization and Depreciation)" due to
the higher costs with routine road maintenance; and (ii) the 20.1% reduction in
“Expenses with the Concession Authority” due to the lower expenditures in the quarter
with “Inspection Funds”.
Inspection Funds .
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11. Indebtedness
BNDES Bridge Loan (Federal Concessions):
Credit line totaling R$ 1.0 billion structured with of the "BNDES Bridge Loan" for the federal concessions in June
2009;
Until January 31 2009 already had been disbursed R$798 4 million
31, R$798.4 million.
BNDES Long-Term Loan (Federal Concessions):
Material delivered and beginning of studies;
The first payments of this credit line are expected for 2Q10.
Long-Term Loan (State Concessions):
On February 18, 2010, the state concessions Autovias, Centrovias, Intervias and Vianorte registered at the
Brazilian Financial and Capital Markets Associations (ANBIMA) a request for a R$1.1 billion debentures issue by
the concessions.
The proceeds from the issue will used primarily:
i. to refinance the R$700 million in promissory notes issued in November 2009 and due in April 2010 at the
concessions Autovias, Centrovias and Intervias;
ii. to repay the debt held by Vianorte at the BNDES of approximately R$50 million; and
iii. for additional funds of R$350.0 million for investments and dividend payments at the four state
concessions.
i
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12. CapEx
CapEx Breakdown 4Q09 – R$138 3 million*
C E B kd R$138.3 illi *
3.47%
16.28%
16 28% 7.10%
7 10%
5.84%
1.89%
9.16%
21.01%
8.58%
26.67%
Estimated investments for the next 5 years (2010 to 2014), as scheduled under the
concession agreements:
State Concessions: R$598 million;
St t C i illi
Federal Concessions: R$3.8 billion.
* Not considering investments in other subsidiaries, holding and adjustments of consolidation.
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13. New Opportunities
Federal Highways:
3rd Stage / 1st Phase: BR-040, BR-381 and BR-116 (Minas Gerais State). 2,000 km with 3
lots. Auction ti t d to
l t A ti estimated t occur i 2010
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 auction.
State Highways:
Minas Gerais: 16 lots with 7,000 km. Concessions or PPP’s. Estimated to occur in 2010;
, ;
São Paulo: Rodoanel: South and East stretches with Public Hearing on 20/01/10, estimated
bidding to 1Q10. Forecast PPP Tamoios highway.
Airports:
Galeão (Rio de Janeiro) and Viracopos (Campinas SP) Are expected the concession of
(Campinas-SP).
these two airports to privately-owned enterprise.
PPP - Aeroporto Internacional de São Gonçalo do Amarante (Natal/RN). Estimated to
occur 2010/2011.
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