11 conference call 4 q08
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Transcript of 11 conference call 4 q08
Conference Call
4Q08 Earnings Results
1March 17th, 2008
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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Key issues of the quarter
Traffic expansionIn 4Q08 the traffic volume in our concessionaires totaled 35.6 million toll paying vehicle-equivalents, 2.6% higher than the same period in 2007;
4Q08 ResultsAdjusted EBITDA: In 4Q08 we reached an Adjusted EBITDA of R$126.5 million(+20 8%) Adjusted EBITDA Margin of 65 2%;(+20.8%), Adjusted EBITDA Margin of 65.2%;Financial Results: Our Net Financial Expenses fell 63.9%, against the 3Q08, totalingR$19.7 million;Net Income: The Company’s Net Income for 4Q08 was R$46.4 million, an increase ofp y112.4% vs. 4Q07.
Toll Collection Begins – Federal ConcessionIn December 2008, 5 toll plazas on 3 federal concessionaires of OHL Brasil begancollecting. Until 03/16/2009, 20 toll plazas are operating.
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Traffic Performance – State Concessions
Traffic Performance (in ‘000 equiv.-vehicle)
2 6%+2 6%+2.6%+2.6%
-5.5% -5.5%
128,659
+6.9%+6.9%*
13 882
7,064
7,8217,284
34,724
37,71335,640
51,817
27,200
29,127120,361
5,553 5,686
12,83313,882
13,134
5,881 20,725
49,709
22,225
Autovias
Centrovias
9,273 10,129 9,536
4Q07 3Q08 4Q08
22,727 25,490
2007 2008
Intervias
Vianorte
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*Autovias Adjustment: considering average traffic volume between São Simão and Sta. Rita toll plazas.
Toll Tariff Performance – State Concessions
Average Toll Tariff (R$)
Toll Tariff Adjustment: Pursuant to the concession agreement of São Paulo state concessionaires, on July 1st, 2008, toll tariffs were adjusted in 11.53% according to the accumulated variation of the IGP-M (General Price Index) between June/2007 and May/2008.
Average Toll Tariff
(in R$/Equiv-Vehicles)4Q073Q084Q08 %4Q08/
4Q07 %4Q08/
3Q08 +12.7%+12.7%
0.0%0.0%
Autovias 5.50 5.51 4.92 -0.2% 11.8%
Centrovias 8.81 8.84 7.47 -0.3% 17.9%
Intervias 4.53 4.53 4.06 0.0% 11.6%
Vianorte 6.42 6.43 5.83 -0.2% 10.1%5.86 5.86
Total: 5.86 5.86 5.20 0.0% 12.7%5.20
4Q07 3Q08 4Q08
Centrovias’ Average Toll Tariff In 4Q08, Centrovias concessionaire’s average toll tariff grew 17.9% over 4Q07 due to the end of the duplication of Rodovia Engenheiro Paulo Nilo Romano, SP-225.
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Toll Collection Begins – Federal Concessions
Toll Paying Traffic - Federal Concessions
Traffic Federal Concessions (2008) Charge Period Equivalent
Vehicles Tariff (R$)Concessions (2008) g Vehicles ( )
Planalto Sul from 12/19 to 12/31 128,096 2.70Fernão Dias from 12/19 to 12/31 638,639 1.10Régis Bittencourt from 12/29 to 12/31 230,922 1.50Total 997 657 1 40*Total 997,657 1.40
* Average Tarrif
Toll Plazas and Collection Begins
UNTIL 03/16/2009 OPENING ESTIMATION
Concessionaire Total of Toll Plazas Opening - 2008 Opening - 2009 Toll Plazas - Operating March April May June
Planalto Sul 5 1 4 5Fluminense 5 3 3 1 1Fernão Dias 8 2 4 6 1 1Régis Bittencourt 6 2 2 4 1 1Litoral Sul 5 2 2 1 2Total 29 5 15 20 4 3 1 1
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Net Revenue Performance
Net Revenue (in R$ million) Net Revenue per Concessionaire – 4Q08
+16.3%24 0%
203.7193.9
-4.8%
1.3 Federal Concessions
24.0%28.6%
48 3
58.2 55.1
38.0
46.243.0
166.7 Concessions25.1%
22.3%0.66%
Federal Concessions
Electronic Toll Collection (% Total Toll Revenue)51.6% 51.4%
46.5%50.2% 48.9%51 3 48 3
38.348.0 46.2
48.3
45.6%50.4% 51.0%
45.2%
50.2% 48.9%42.1 51.3 48.3
4Q07 3Q08 4Q08
Autovias
46.3% 52.0% 51.3%
49.0%54.2% 54.4%Centrovias
Intervias
Vianorte
F d l
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4Q07 3Q08 4Q08
Federal Concessions
Adjusted EBITDA and Margin
Adjusted EBITDA (in R$ million)
66.1% 63.6%
71.3%
65.2%
145.3
58.3% 61.1%66 %
62.7%59.8%
80.4 86.9112.0 104.5
93.3109.0
126.5
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08
Adjusted EBITDA % Adjusted EBITDA Margin
NET SERVICE REVENUE 193,895 203,634 166,680 -4.8% 16.3% 724,982 615,813 17.7%Cost and Service Expenses (54,305) (45,231) (50,383) 20.1% 7.8% (201,119) (186,096) 8.1%EBITDA 139 590 158 403 116 297 11 9% 20 0% 523 863 429 717 21 9%
EBITDA and Adjusted EBITDA (R$ thousand) 4Q08 4Q073Q08 2008 YoY%4Q08/
4Q07 %4Q08/
3Q08 2007
EBITDA 139,590 158,403 116,297 -11.9% 20.0% 523,863 429,717 21.9%EBITDA Margin (%) 72.0% 77.8% 69.8% 72.3% 69.8%(-) Fixed Concession Charge Paid (13,117) (13,118) (11,761) 0.0% 11.5% (49,759) (46,057) 8.0%Adjusted EBITDA 126,473 145,285 104,536 -12.9% 21.0% 474,104 383,660 23.6%Adjusted EBITDA Margin (%) 65.2% 71.3% 62.7% 65.4% 62.3%
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Adjusted EBITDA Margin (%) 65.2% 71.3% 62.7% 65.4% 62.3%
Financial Result
%4Q08/%4Q08/
Financial Revenues 16,752 6,222 2,209 169.2% 658.4% 28,832 11,895 142.4%Financial Expenses (36,319) (60,696) (34,784) -40.2% 4.4% (173,043) (120,701) 43.4%
BNDES/CEF (2 939) (3 748) (7 933) 21 6% 63 0% (21 078) (33 345) 36 8%
2,007 YoY%4Q08/ 4Q07
4Q07 %4Q08/ 3Q08
2,008 3Q084Q08Financial Result (R$ thousand)
BNDES/CEF (2,939) (3,748) (7,933) -21.6% -63.0% (21,078) (33,345) -36.8%Other Financial Expenses (23,569) (46,446) (8,891) -49.3% 165.1% (95,744) (39,429) 142.8%
Monetary Correction of Fixed C. Charge (9,811) (10,502) (17,960) -6.6% -45.4% (56,221) (47,927) 17.3%
Net Exchange Variation (152) (79) (119) 92.4% 27.7% (186) (66) 181.8%g ( ) ( ) ( ) ( ) ( )Net Financial Result (19,719) (54,553) (32,694) -63.9% -39.7% (144,397) (108,872) 32.6%% Net Services Revenue (10.2%) (26.8%) (19.6%) (19.9%) (17.7%)
Financial Expenses Breakdown (% total of the financial expenses)
76.5%IGP-M - Quarterly
3 5%Other Financial Expenses
Monetay Correction of Fixed Concessions Charge25 6%
64.9%51.6%
17 3% 27 0%
3.5%
1.5%1.2%
Fixed Concessions Charge
BNDES/CEF22.8% 6.2%
8.1%
25.6% 17.3% 27.0%
4Q07 3Q08 4Q08 4Q07 3Q08 4Q08
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Net Income
Results Evolution (in R$ thousand)
29 782 (2 567)
14,543 (9,717)8,149 (10,547)
29,782 (2,567)(3,829)
(852) 617 (1,146) 46,437
22,004
Net Income4Q07
GrossRevenues
CostsExpenses
G&A Net Income4Q08
I&SCTaxes
Deductions Deprec. andAmort.
FinancialRevenues
FinancialExpenses
Monetary Correction
VariableCharge
112.4%
4Q07 Revenues p 4Q08TaxesAmort. p Correction of Fixed
Concession Charge
Charge
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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)
1,5x 1 4 1,5x 1 4
1,9x(R$ million)
1,012 1,037
652
915
, 1,4x ,1,3x
1,1x 1,1x 1,1x
1,4x
327 250 246407 399
375 355 933 935590 585
537 517 518
691 690
429 416 467 456 437 416 465
4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08
Net Debt Net Debt/ Adjusted EBITDA
263 335 291110 119
316 335
79 102
4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08
Long Term Short Term
Debt Cost Breakdown Debt Amortization Schedule (in R$ million)
88,.% 88.7%886.7
CDI
56.5%
88, %
TJLPOther
11.1% 11.3%42.4%
1.1% 0.4% 0.0%
4Q07 3Q08 4Q08
101.621.5 18.1 8.7
2009 2010 2011 2012 2013
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4Q07 3Q08 4Q08
CapEx
C E * B kd 2008 E ti t d C E STATE $CapEx* Breakdown 2008 Estimated CapEx – STATE (in R$ million)
250
197
Total Investments*: R$ 725 million
6.53% 7.88%5 93%
197 170
80 60 60
100
E ti t d C E * FEDERAL (i R$ illi )
5.93%
6.79%
72.87%
2007 2008 2009E 2010E 2011E 2012E 2013E
Estimated CapEx* - FEDERAL (in R$ million)
1,102 1.235 1.233 Federal Investments - initial works and
construction of toll plazas:
Federals
528 531 R$528.4 million were invested in our federalconcessionaires in 2008 for initial road recovery,such as pavement and art works recovery,
194
2008 2009E 2010E 2011E 2012E 2013E
improved signals and vegetation pruning; andconstruction of toll plazas.
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* Not considering investments in subsidiaries, at the Company and reversion of unrealized profits on our construction companies
Promissory Notes (PNs):
Indebtedness – Federal Concessions
Promissory Notes (PNs):
• In January 2009 we have issued R$200.0 million in Promissory Notes to meet the commitments of investments in federal concessionaires. The re-payment of these PNs will be with the resources from the bridge loan from BNDES.
Bridge Loan - BNDES:
• As the first phase of the long term financing, the company is negotiating a bridge loan with the BNDES, which the first disbursement may occur in 1Q09;
• The loan tenor will be in 18 months and the cost close to 12.70% + 2.6% p.a..
Long-Term Financing - BNDES:
• On November 10th, 2008, BNDES approved the framing related to the long-term financing of 70% of the CAPEX of the first 6 years of our federal concessions;
f f• We believe that the closing of this long-term financing operation will occur in approximately 8 months.
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New Opportunities
OHL Brasil maintains its aim to grow and develop in the Brazilian market ofinfrastructure concessions. To do this we continue to analyze new opportunities in thesectors.
Federal Highways: BR-040, BR-381 e BR-116 (Minas Gerais State). 2,000 km with 3 lots.Auction estimated to occur in 1H09;
State Highways in Minas Gerais: 16 lots with 7,000 km. Concessions or PPP’s.Estimated to occur in 1H09;
Ai t G l ã (Ri d J i ) d Vi (C i SP) A di t ANACAirports. Galeão (Rio de Janeiro) and Viracopos (Campinas-SP): According to ANAC,the Bidding Documents will be announced in 2H09;
Railway. Expresso Aeroporto (28.3 km) - Trem de Guarulhos (20.8 km): Phase ofRailway. Expresso Aeroporto (28.3 km) Trem de Guarulhos (20.8 km): Phase ofstudies by the Government;
Secondary Market.
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