Apimec Res 2005 Ingl

24
2005 Earnings Results 2005 Earnings Results Public Meeting Public Meeting March, 2006 March, 2006

Transcript of Apimec Res 2005 Ingl

Page 1: Apimec Res 2005 Ingl

1

2005 Earnings Results2005 Earnings ResultsPublic MeetingPublic Meeting

March, 2006March, 2006

Page 2: Apimec Res 2005 Ingl

2

Disclaimer

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 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, government regulations, competitive pressures, the performance of the Brazilian economy and the industry and are, therefore, subject to change without prior notice.

Page 3: Apimec Res 2005 Ingl

3

Outlook

Company Profile

2005 Results

2005 Highlights

Agenda

Page 4: Apimec Res 2005 Ingl

4

Outlook

Company Profile

2005 Results

2005 Highlights

Page 5: Apimec Res 2005 Ingl

5

Organizational Structure and Ownership Restructuring

Advanced stage of the ownership restructuring to rationalize and simplify our organizational structure.

OtherBusinesses

100.0% 100.0% 100.0%

51.1%

FREE FLOAT

8.9%

100.0%

40.0%

International Group of construction, concession and services

Founded over 90 years ago

Established in 16 countries

Listed in Spain since 1991

One of the six most transparent companies in Spain in 2005

2 independent core businesses: Construction and Concessions

2005 Net Revenue: € 2.4 billion; and 2005 EBITDA: € 285.4 million

1995–2005 CAGR Revenues of 32%

Present in the Brazilian market through OHL Concesiones

Group OHL

Page 6: Apimec Res 2005 Ingl

6

OHL Concesiones

140.060%Autopista del Sol

20%Muelle Inflamables Barcelona

50%Puerto de Alicante

Airports

(Km)(%)

100%Autovia M -45

100%Autopista Nuevo Aeropuerto Barajas

50%Aeropuerto Internacional de México

70%Autopista Ezeiza -Cañuelas

77%

100%

58%

60%

60%

60%

Ports Concessions

51,7Sistema Carretero del Oriente

92,4Camino Internacional Ruta 60

82,0Autopista Los Libertadores

Centrovias

Autovias

Intervias

60%Autopista del Sol

20%Muelle Inflamables Barcelona

50%Puerto de Alicante

Extension (Km)

Part.(%)

Toll road Concession

100%Autovia M -45

8.2100%Autopista Nuevo Aeropuerto Barajas

50%Aeropuerto Internacional de México

100%

58%

60.1Autopista Ezeiza -Cañuelas

51.7Sistema Carretero del Oriente

92.4Camino Internacional Ruta 60

82.0

219.5Centrovias

316.5Autovias

371.2Intervias

Mexico

Argentina

ChileBrazil

Spain

The Brazilian operation is strategic for OHL Concesiones in its growth process

67% 123.0Autopista Amozoc Perote

8.3

Page 7: Apimec Res 2005 Ingl

7

• Population of more than 4 mm people

• One of the main agribusiness centers in Brazil

• Responsible for 32% of domestic alcohol and 70% of exported orange juice

Location

The State of São Paulo accounts for approximately 22% of Brazilian population and 35% of the country’s GDP.... to the Northeast from the city of São Paulo...

Operating Area Map

OHL Brasil’s toll roads are the main access from productive areas to:

São Paulo: main consumer center

Porto de Santos: largest national export corridor

... allows OHL Brasil to benefit from expansion effects of the industrial and agribusiness activities.

Page 8: Apimec Res 2005 Ingl

8

Corporate Governance

•Bovespa’s Novo Mercado

•Support and strategic commitment from Group OHL.

•Transparency and Protection to minor shareholders’ interest.

•100% Tag-Along.

•Capital Structure with 100% of ordinary shares (equality of rights for minor shareholders).

•Capital with a 40% free float.

•Board of Directors with 5 members, being one independent.

Page 9: Apimec Res 2005 Ingl

9

Outlook

Company Profile

2005 Results

2005 Highlights

Page 10: Apimec Res 2005 Ingl

10

2005 Highlights

•3% traffic growth, while GDP grew 2.3%. Elasticity = 1.3

•12% Net Revenue growth (pro forma). 9.08% tariff readjustment.

•Adjusted EBITDA grows 15.1% (pro forma). Margin jumps 1.7 b.p., reaching 63.4%.

•Net Income totals R$76.8 million. The margin was 19.7%.

•We concluded the main investments in Autovias and Intervias.

Page 11: Apimec Res 2005 Ingl

11

Outlook

Company Profile

2005 Results

2005 Highlights

Page 12: Apimec Res 2005 Ingl

12

Consolidated Traffic Performance (Million of Equivalent-Vehicles)

3Q054Q04 4Q05

0.2%

-2.9%

23.2

33.9

55.7

81.0

2002 2003 2004 2004 (pf) 2005

83.4

4.6 4.7 4.6

4.9 4.9 4.8

11.6 12.3 11.7

CAGR: 55.0

%

CAGR: 53.2

%22%

23%55%

Traffic Breakdown - 2005

Page 13: Apimec Res 2005 Ingl

13

Traffic and GDP Performance

2.4%

-1.8%

6.7%

3.0%

4.7%

1.9%

0.5%

4.9%

2.8%2.3%

2002 2003 2004 2005 1Q05

6.6%

1.0%

0.2%

4.0%

1.0%1.4%

2Q05 3Q05 4Q05

OHL Traffic

GDP

1.23

Elasticity in the period

-3.28 1.35 1.30 1.67 1.65 1.02 0.11

Comparison with the same period of the previous year:

Page 14: Apimec Res 2005 Ingl

14

Tariff Readjustment vs. IGP-M vs. IPCA (%)

7.0 7.8

17.2

5.28.9

31.5

7.0 9.18.9

24.0

14.09.1

2002 2003 2004 2005

IPCA - LTM IGPM - LTM Tariffs

Page 15: Apimec Res 2005 Ingl

15

Net Revenue (R$ million)

CAGR: 70.1

%

92.7

158.8

268.3

347.3

2002 2003 2004 2004 (pf)

389.1

2005

CAGR: 61.3

%

10.4%

-1.6%

3Q054Q04 4Q05

25.2 28.7 29.1

30.3 32.1 32.2

38.544.7 42.5

27%

31%

42%

Revenues Breakdown - 2005

Page 16: Apimec Res 2005 Ingl

16

Total Costs

17%

35%38%

4%6% Personnel

Third party services, maintenanceand others Depreciation

Amortization of fixed concession

Variable Charge (3%)

Total Costs Breakdown - 2005

69.1 65.656.1 57.3 55.1

2002 2003 2004 2004 (pf) 2005

Total Costs Margin (%)

Total Costs* Var % (pf) Var % (R$ thousand) 2005/2004 2005/2004

Personnel -37,536 -33,111 -22,504 13.4% 66.8%Third party services, maintenance and others -75,764 -74,416 -57,195 1.8% 32.5%Depreciation -78,539 -70,263 -54,898 11.8% 43.1%Amortization of fixed concession charge -9,364 -9,386 -6,981 -0.2% 34.1%Variable Charge (3%) -13,399 -11,906 -8,959 12.5% 49.6%Total -214,602 -199,082 -150,537 7.8% 42.6%

* Cost of Services Provided + General and Administrative Expenses + Tax Expenses.

2005 2004 (pf) 2004

charge

Page 17: Apimec Res 2005 Ingl

17

Adjusted EBITDA

Adjusted EBITDA Margin (%)

58.857.7

62.861.7

63.4

2002 2003 2004 2004 (pf) 2005

CAGR: 75.7

%

54.5

91.7

168.3

214.4

2002 2003 2004 2004 (pf)

246.8

2005

CAGR: 65.4

%

Adjusted EBITDA (R$ Million)

Var % (pf) Var % 2005/2004 2005/2004

Net Services Revenues 389,135 347,332 268,267 12.0% 45.1%Total Costs* -214,602 -199,082 -150,537 7.8% 42.6%Amortization and Depreciation 87,903 79,649 61,879 10.4% 42.1%Other Revenues** - 959 959 -100.0% -100.0%EBITDA 262,436 228,858 180,568 14.7% 45.3%Fixed concession charge paid -15,638 -14,465 -12,230 8.1% 27.9%Adjusted EBITDA 246,798 214,393 168,338 15.1% 46.6%% Adjusted EBITDA without Net Revenue 63.4% 61.7% 62.8%

* Cost of Services Provided + General and Administrative Expenses + Tax Expenses.** The R$6,371 thousand from equity result was not considered in the EBITDA and Adjusted EBITDA calculation.

2004Adjusted EBITDA (R$ thousand) 2005 2004 (pf)

Page 18: Apimec Res 2005 Ingl

18

12,4

1,22004 2005

Net Financial Result

74%

19%

7%

46%

26%

28%

20052004

BNDES/CEF BNDES/CEF

Other Fin.

Monetary correction of concession

charge

Financial Expenses Breakdown (% of total) IGP-M Evolution (%)

-90,3%

Var % (pf) Var % 2005/2004 2005/2004

Financial Revenues 21,007 11,020 9,527 90.6% 120.5%Financial Expenses -50,989 -84,069 -65,648 -39.3% -22.3%BNDES/CEF -37,934 -38,995 -30,252 -2.7% 25.4%Other Financial Expenses -9,489 -23,107 -17,297 -58.9% -45.1%Monetary correction of fixed concession charge -3,566 -21,967 -18,099 -83.8% -80.3%Net Financial Result -29,982 -73,049 -56,121 -59.0% -46.6%% Net Services Revenue 7.7% 21.0% 20.9%

2004Net Financial Result (R$ thousand) 2005 2004 (pf)

Monetary correction of concession charge

Other Fin.

Page 19: Apimec Res 2005 Ingl

19

Indebtedness

... 100% of the Company’sdebt is denominated in R$

Total Debt (R$ MM)

Charges (December/2005)Amortization Schedule (R$ MM)

Net Debt (R$ MM)

TJLPCDIUNBNDES

88%

9%

3%

51.052.1 67.7

255.3 236.0

276.3307.4 30.7

4Q054Q04 1Q05

Short term debt Long term debt

66.0

224.0

290.0

2Q05

67.4

216.0

283.4

3Q05

225.3

Net Debt / Adjusted EBITDA (Last 12 month)

250.5236.6

207.6

91.7

4Q04 1Q05 2Q05 3Q05

118.2

4Q05

1.5x 1.2x0.9x

0.4x 0.5x

51.0

70.2

51.4 52.4

44.2

7.1

2006 2007 2008 2009 2010 2011

Page 20: Apimec Res 2005 Ingl

20

Net Income (R$ million)

24.0 23.6

3Q05 4Q05

5.6

322.

9%

-1.6%

4Q04

(8.2)

3.2

25.2 24.4

2002 2003 2004 2004 (pf)

76.8

2005

204.

2%

CAG

R: 3

89.9

%

Page 21: Apimec Res 2005 Ingl

21

Capex (R$ million)

Conclusion of Autovias’ and Intervias’ “main construction program”

Centrovias expected to be concluded in 2007.

Schedule

24%

23%

53%

CAPEX Breakdown - 2005CAPEX (Actual and Estimated)

169.1

191.8200.0

120.0

80.0

55.0

2004 2005 2006E 2007E 2008E 2009E

Total Capex estimated for2007 to 2009

255.0

Page 22: Apimec Res 2005 Ingl

22

Outlook

Company Profile

2005 Results

2005 Highlights

Page 23: Apimec Res 2005 Ingl

23

New Biddings: Federal, State and PPP

Federal lots:Road axles are strategic in the interconnection of the richest Brazilians regions

State lots (SP):Potential export corridor through the Port of SãoSebastião

02

07

Lot ASP 70 - Rodovia A.Senna/Carvalho Pinto

167.5 Km 02Lot B

SP 65 - Rodovia D. Pedro I118.5 Km 04

286.0 Km 06

Lot 1 BR 153/ SP - Divisa MG/SP 321.7 KmLot 2 BR 116/PR/SC - Curitiba - Divisa SC/RS 406.5 KmLot 3 BR 393/RJ - Divisa MG/RJ (Via Dutra) 200.5 KmLot 4 BR 101 - Divisa RJ/ES (Ponte Rio Niterói) 320.8 KmLot 5 BR 381- Belo Horizonte - São Paulo 561.5 KmLot 6 BR 116/SP/PR - São Paulo - Curitiba 401.7 KmLot 7 BR 376 - Curitiba - Florianópolis 367.6 Km

2,580.3 Km

04 05030508060536

PPP MG 050 (MG):Large potential of synergy with our toll roads network.

01

PPP 372.0 Km 06MG 050 – Betin – Divisa SP I

Section Extension # of Toll Plazas

Section Extension # of Toll Plazas

Section Extension # of Toll Plazas

Page 24: Apimec Res 2005 Ingl

24

Investor Relations

OBRASCON HUARTE LAIN BRASIL S.A.

Contacts OHL Brasil S.A.: Address:

Rua Pedroso Alvarenga, 990 – 5ºItaim Bibi – São Paulo – SPCEP 04531-004Tel.: (5511) 3074-2404

Francisco Leonardo MouraFrancisco Leonardo Moura da Costada CostaCFO and [email protected]

Alessandro Scotoni LevyAlessandro Scotoni LevyFinancial and Investor Relations [email protected]