Post on 17-Jan-2015
description
Conference Call
3Q09 Earnings Results
1November 13th, 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.
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Traffic Performance and Average Toll Tariff – State Concessions
Traffic Performance (in ‘000 equiv.-vehicle) Average Toll Tariff (R$)
-1.7%+7.5%
37,084 37,713 34,501
13,882 12,691 13.751
7,821 7,031
7,580 Evolução Tarifa Média (R$)
+3.6%+3.2%
10,129 9,298 9,923
5,881 5,482 5,829
5.86 5.886.07
, ,
3Q08 2Q09 3Q09Autovias Centrovias Intervias Vianorte
3Q08 2Q09 3Q09
Tariff Adjustment of 3.64% in July 01, 2009based on the accumulated variation of the IGP-M from June/2008 to May/2009.
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Toll Plazas – Federal Concessions
Operating Toll Plazas:
Concessionaire Opening - Dec/2008
Opening - Jan/2009
Opening - Feb/2009
Opening - Mar/2009
Opening - May/2009
Opening - June/2009
Opening - Aug/2009
Toll Plazas - Operating
Total Toll Plazas
Planalto Sul 1 1 3 5 51 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
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Traffic and Tariff – Federal Concessions
Toll-Paying Traffic – Federal Concessions 3Q09:Toll-Paying Traffic – Federal Concessions 3Q09:
Equivalent-Vehicles 3Q09 2Q09 Var% 3Q09/2Q09
Planalto Sul 6,265,555 5,959,259 5.1%Planalto Sul 6,265,555 5,959,259 5.1%
Fluminense 8,311,200 5,774,000 43.9%
Fernão Dias 25,123,637 23,039,090 9.0%
Régis Bittencourt 31,927,999 25,308,667 26.2%
The toll tariffs offered in the federal auctions in October/07 were adjusted by the variation of the IPCA
Litoral Sul 23,629,091 14,053,636 68.1%Total - Federal Concessions: 95,257,482 74,134,652 28.5%
j yfrom June 2007 to the month prior to the initiation of the toll charge at the first toll plaza in eachconcessionaire:
Average Toll Tariff 3Q09 2Q09 Var%Average Toll Tariff (in R$/Equiv-Vehicles)
3Q09 2Q09 Var% 3Q09/2Q09
Planalto Sul 2.70 2.70 0.0%
Fluminense 2.50 2.50 0.0%
Fernão Dias 1.10 1.10 0.0%
Régis Bittencourt 1.50 1.50 0.0%
Litoral Sul 1.10 1.10 0.0%
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Average - Federal Concessions: 1.46 1.47 -0.7%
Potential Net Revenue – Federal Concessions
Net Revenue Performed and Potential (R$ million)Net Revenue Performed and Potential (R$ million)
117.5 121.1 127.5 134.5
47.8
100.2 126.8 119.0
127.6
Potential 29 Toll Plazas EstimatedPerformed
1Q09 2Q09 3Q09 4Q09 (Revised)
In 3Q09, plaza 4 of Autopista Fluminense started operating (last toll plaza of this concession tobecome operational). Together with the 27 plazas already in operation in 2Q09, 3Q09 endedwith 28 operational plazas;
In 3Q09, the partial toll collection in our federal concessions, was slightly higher than theguidance projected by the Company in the beginning of the year, totaling R$ 127.6 netrevenue;
We have revised our net revenue guidance for 4Q09 due to (i) the change in the forecast forthe beginning of operation of P1 of Fernão Dias (from 4Q09 to 2Q10) and (ii) taking intoconsideration the volume of toll-paying traffic recorded by the concessionaires throughout the
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year.
Net Revenue – Evolution per Concessionaire
Net Services Revenue Var% Var%Net Services Revenue (R$ thousand) 3Q09 2Q09 3Q08 Var%
3Q09/2Q09 Var%
3Q09/3Q08 9M09 9M08 9M/9M
Autovias 51,989 47,096 51,307 10.4% 1.3% 141,977 134,784 5.3%
Centrovias 48,962 44,734 47,978 9.5% 2.1% 135,467 123,449 9.7%
I t i 59 910 53 369 58 186 12 3% 3 0% 161 103 151 675 6 2%Intervias 59,910 53,369 58,186 12.3% 3.0% 161,103 151,675 6.2%
Vianorte 46,843 41,941 46,163 11.7% 1.5% 126,411 121,179 4.3%
Total - State Concessions: 207,704 187,140 203,634 11.0% 2.0% 564,958 531,087 6.4%
Planalto Sul 15,497 14,739 - 5.1% n.a. 39,671 - n.a., , ,
Fluminense 18,805 13,179 - 42.7% n.a. 38,370 - n.a.
Fernão Dias 25,390 23,244 - 9.2% n.a. 60,060 - n.a.
Régis Bittencourt 43,700 34,678 - 26.0% n.a. 94,932 - n.a.
Lit l S l 24 206 14 329 68 9% 42 539Litoral Sul 24,206 14,329 - 68.9% n.a. 42,539 - n.a.
Total - Federal Concessions: 127,598 100,169 - 27.4% n.a. 275,572 - n.a.
Total: 335,302 287,309 203,634 16.7% 64.7% 840,530 531,087 58.3%
Revenues through electronic collections (AVI System) in the state concession tollplazas in 3Q09 represented 53 7% compared to 53 0% in 2Q09 and 51 6% in 3Q08;
Electronic Toll Collection:
plazas in 3Q09 represented 53.7% compared to 53.0% in 2Q09 and 51.6% in 3Q08;
For the federal concessions the average percentage of electronic collections iscurrently at 29 6% against 27 5% in the 2Q09
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currently at 29.6%, against 27.5% in the 2Q09.
Adjusted EBITDA and Margin
Adj d EBITDAAdjusted EBITDA (in R$ million)
66 1%71.3%
65 2%69.1%
145 3 144 8196.1
66.1% 62.7% 59.8%63.6% 65.2%
37.4% 50.4%
58.5%63.3% 63.9%
112.0 104.5 93.3 109.0145.3 126.5
81.5
144.8
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
EBITDA & Adjusted EBITDA (R$ th d) 3Q09 2Q09 3Q08 Var%
3Q09/2Q09Var%
3Q09/3Q089M09 9M08 9M/9M
Adjusted EBITDA Adjusted EBITDA Margin (%) Adjusted EBITDA Margin (%) – Ex- Federals
(R$ thousand) 3Q09/2Q09 3Q09/3Q08
NET SERVICE REVENUE 335,302 287,309 203,634 16.7% 64.7% 840,530 531,087 58.3%
Cost and Service Expenses (125,642) (129,427) (45,231) -2.9% 177.8% (378,372) (146,814) 157.7%
EBITDA 209,660 157,882 158,403 32.8% 32.4% 462,158 384,273 20.3%
EBITDA Margin (%) 62.5% 55.0% 77.8% 55.0% 72.4%
(-) Fixed Concession Charge Paid (13,595) (13,119) (13,118) 3.6% 3.6% (39,832) (36,641) 8.7%
Adjusted EBITDA 196,065 144,763 145,285 35.4% 35.0% 422,326 347,632 21.5%
Adj t d EBITDA M i (%) 58 5% 50 4% 71 3% 50 2% 65 5%
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Adjusted EBITDA Margin (%) 58.5% 50.4% 71.3% 50.2% 65.5%
EBITDA – Federal Concessions OnlyVar% EBITDA - Federals Concessions 3Q09 2Q09 3Q09/2Q09
NET SERVICE REVENUE 127,598 100,169 27.4%
Costs and Service Expenses (75,112) (75,017) 0.1%
C t f S i (E A t d D ) (55 311) (55 305) 0 0%
(R$ thousand)3Q09 2Q09
Costs of Services (Ex. Amort. and Depre.) (55,311) (55,305) 0.0%
Grant Authority Expenses (8,757) (8,558) 2.3%
General & Administrative Expenses (Ex. Amort.) (10,446) (10,292) 1.5%
Directors' Compensation (677) (680) -0.4%
Tax Expenses (1) (219) -99.5%
Other Revenues/ Expenses 80 37 116.2%
EBITDA 52,486 25,152 108.7%
EBITDA Margin (%) 41 1% 25 1%
The following two factors explain the increase of EBITDA in our Federal Concessionsduring this quarter:
EBITDA Margin (%) 41.1% 25.1%
Increase in Net Revenues in the period due to the operation of 27 out of the 29 tollplazas throughout the 3Q09, in addition to the beginning of collection of the last tollplaza at Autopista Fluminense.
Maintenance of Operating Costs and Expenses vs. 2Q09 (+0.1%). We highlight that the operating costs and expenses in federal concessions were below and tend to be below the cost figures listed in the proposals to ANTT (Brazilian Land Transportation Agency) in 2007.
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Agency) in 2007.
Financial Result
Financial Result (R$ thousand) 3Q09 2Q09 3Q08 Var% Var% 9M09 9M08 9M/9MFinancial Result (R$ thousand) 3Q09 2Q09 3Q083Q09/2Q09 3Q09/3Q08
9M09 9M08 9M/9M
Financial Revenues (2,027) 10,784 6,222 -118.8% -132.6% 22,736 12,080 88.2%
Financial Expenses (53,966) (40,848) (60,696) 32.1% -11.1% (136,719) (136,724) 0.0%
BNDES (12,573) (2,765) (3,748) 354.7% 235.5% (18,402) (18,139) 1.4%
Other Financial Expenses (37,915) (34,455) (46,446) 10.0% -18.4% (109,811) (72,175) 52.1%
Monetary Correction of Fixed C. Charge (3,478) (3,628) (10,502) -4.1% -66.9% (8,506) (46,410) -81.7%
Net Exchange Variation 37 112 (79) n.r. n.r. 178 (34) n.r.
Net Financial Result (55 956) (29 952) (54 553) 86 8% 2 6% (113 805) (124 678) -8 7%
Financial Expenses Breakdown (% total of the financial expenses)IGP M (Inflation) Quarterly
Net Financial Result (55,956) (29,952) (54,553) 86.8% 2.6% (113,805) (124,678) 8.7%
% Net Services Revenue -16.7% -10.4% -26.8% -13.5% -23.5%
Other Financial Expenses
-IGP-M (Inflation) – Quarterly
1.5%
0 3%
76.5%84.3%
70 3%Other Financial Expenses
BNDESCDI (Interest Rate) – Quart. Average
-0.3%-0.4%
3Q082Q093Q09
%23.3%
70.3%
Monetary Correction of Fixed Concession Charge
12.8%
10.3%8.7%
6.2%6.8%
23.3% 17.3%8.9%6.4%
3Q082Q093Q09
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3Q082Q093Q093Q082Q093Q09
Net Income
Results Evolution (in R$ thousand)
144,204 (12,536)(57,283)(57,283)
(8,928)(14,200)
(14,067)(8 249) 7 024 (10 630)
30,798
(8,249)(178) 7,024 (10,630) 55,955
Net Income3Q08
GrossRevenues
CostsExpenses
G&A Net Income3Q09
IR&SCTaxes
Deductions Deprec. andAmort.
FinancialRevenues
FinancialExpenses
Monetary Correction
of Fixed Concession
Grant AuthorityExpenses
Charge
+81.7%
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Debt Structure
Gross Indebtedness (in R$ million) Leverage Ratio and Net Debt (in R$ million)Gross Indebtedness (in R$ million) Leverage Ratio and Net Debt (in R$ million)
2.5x2.6x 2.4x
Leverage Ratio and Net Debt (R$ million)1,9361,657
Indebtness (R$ million)
9151,174 1,291 1,325
1.3x1.1x 1.0x 1.1x
1.4x
1.9x
1 158
267739
922
517 518691 690
1012 1037
1,425
456 437 416 471652
915
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
110 119 316 33579 102
1.158 1,1581,197407 399
375 355 933 935517 518
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
L T Sh t T
Debt Cost Breakdown Debt Amortization Schedule (in R$ million)
Net Debt Net Debt/ Adjusted EBITDA (LTM)Long Term Short Term
88.5%
69.0%
52.7% CDI
735.3 695.5
Cronograma Financeiro de Amortização (R$ Milhões)
11.1%
30.7%47.0%
0.4% 0.3% 0.3%
3Q08 2Q09 3Q09
TJLP
Other
192.9
22.0 11.7
Oct/09 to Sep/10
Oct/10 to Dec/10
2011 2012 2013
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Sep/10 Dec/10
Indebtedness – Federal Concessions
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 September 30, 2009 already had been disbursed R$668.8 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):
The Company is already negotiating with financial institutions to roll-over its debts maturing in January 2010 in state concessionaires.
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CapEx
C E B kd 3Q09 R$172 6 illi *CapEx Breakdown 3Q09 – R$172.6 million*
9.30%3.48%
10.31%15.41%
11.88%
5.33%
6.92%22.19%
15.18%
Estimated investments for the next 5 years (2009 to 2013), as scheduled under theconcession agreements:
St t C i R$470 illiState Concessions: R$470 million;
Federal Concessions: R$4.3 billion.
14 * Not considering investments in other subsidiaries, holding and adjustments of consolidation.
New Opportunities
Federal Highways:
3rd Stage / 1st Phase: BR-040, BR-381 and BR-116 (Minas Gerais State). 2,000 kmith 3 l t A ti ti t d t i 2010with 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 3lots. No estimate date for the auction.
State Highways:
Minas Gerais. 16 lots with 7,000 km. Concessions or PPP’s. Estimated to occur in,2009/2010;São Paulo: 2 lots with approximated 386 km of roads on São Paulo State coast. Noestimate date for the auction.
Airports:
Galeão (Rio de Janeiro) and Viracopos (Campinas-SP) Are expected theGaleão (Rio de Janeiro) and Viracopos (Campinas-SP). Are expected theconcession of these two airports to privately-owned enterprise.PPP - Aeroporto Internacional de São Gonçalo do Amarante (Natal/RN).Estimated to occur first half 2010.
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