2. Forward Looking Statement
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, 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 this presentation.
3. Schedule
09:00 a m – Results of 3Q08
a.m.
09:30 a.m. – Current Portfolio
10:30 a.m. – Financial aspects of the current portfolio
11:00 a.m. – Coffee Break
11:30 a m – Perspectives of CCR
a.m.
12:00 a.m. – Questions and Answers
12:30 a.m. – Luncheon
5. Operating Highlights
• Traffic grew by 9.4% in the 3Q08, and 8.8% in the 9M08.
• Net revenue reached R$ 744.1 million (+20.5%) in the third quarter, and R$
1,999.8 million (+16.3%) in the 9M08.
( 16.3%)
• Net Income totaled R$ 219.6 million in the 3Q08 (+22.7%) up on the same
period last year, and R$ 524.8 million (+17.3%) in the 9M08.
• 35 8% increase in AVI users in the year compared to Sep/07 totaling
35.8% year, Sep/07,
1,158,000.
Note: All comparisons refer to the 3Q07 and 9M07.
6. Corporate Highlights
• On September 30, 2008, CCR paid dividends of R$ 1.00 per share, totaling
R$ 403.1 million.
• SAP implementation;
• Professional Development Program;
• Improvement of the CCR Group Corporate Management.
7. Results
R$ Million
g g
Financial Highlights 3Q07
Q 3Q08
Q Chg %
g 9M07 9M08 Chg %
g
Net Revenue 617.6 744.1 20.5% 1,719.2 1,999.8 16.3%
Total Costs (1) (287.2) (356.0) 24.0% (886.4) (1,010.2) 14.0%
EBIT 330.4 388.0 17.4% 832.8 989.5 18.8%
EBIT Margin 53.5% 52.1% -1.4 p.p. 48.4% 49.5% +1.1 p.p.
Depreciation and Amortization (2) 80.3 93.9 16.9% 244.9 268.1 9.5%
EBITDA 410.7 482.0 17.4% 1,077.7 1,257.7 16.7%
EBITDA Margin 66.5% 64.8% -1.7 p.p. 62.7% 62.9% +0.2 p.p.
Net Financial Result (66.4)
(66 4) (47.5)
(47 5) -28.6%
-28 6% (154.7)
(154 7) (172.6)
(172 6) 11.6%
11 6%
Income and Social Contribution Taxes (82.9) (118.0) 42.3% (222.3) (285.8) 28.6%
Net Income 179.0 219.6 22.7% 447.6 524.8 17.2%
(1) Total Costs + Administrative Expenses
(2) Includes prepaid expenses
8. Net Financial Result
Net Financial Result (R$ MM) 3Q07 3Q08 Chg % 9M07 9M08 Chg %
Net Financial Result (66.4) (47.5) -28.6% (154.7) (172.6) 11.6%
Financial Expenses: (87.1) (101.4) 16.5% (214.9) (301.9) 40.5%
- Exchange Rate Variation 6.3 (20.4) n.m. 10.4 (33.3) n.m.
- Losses from Swap Operation (Passive Curve) (8.8) (6.5) -26.2% (14.3) (30.4) 113.5%
- Monetary Variation (19.3)
(19 3) (14.7)
(14 7) -27.8%
-27 8% (25.3)
(25 3) (68.4)
(68 4) 170.4%
170 4%
- Interest on Short-term and Long-term Debt (48.9) (51.9) 6.0% (145.2) (148.7) 2.4%
- Other Financial Expenses (16.4) (7.9) -51.5% (40.6) (21.1) -47.9%
Financial Income 20.7 54.0 161.1% 60.2 129.3 114.7%
Gains from Swap Operation (Active Curve) 1.9 22.3 n.m. 1.9 36.0 n.m.
Other Financial I
Oth Fi i l Income 18.8
18 8 31.7
31 7 68.5%
68 5% 58.3
58 3 93.3
93 3 60.0%
60 0%
15. Indebtedness
Gross Debt Net Debt
2,914
2,338
1,932
93%
1,774
,
1,467
1 467 100% 1,276 1,278
1 278
1.43
1,214
100%
R$ (million)
R$ (million)
1.20
81% 1.07
0.91
3Q05 3Q06 3Q07 3Q08 3T05 3T06 3T07 3T08
Short Term Long Term In R$ Net Debt Net Debt / EBITDA
The increase in short-term debt is the result of bridge loans, which will be refinanced by long-term credits.
22. Blue Ocean Strategy
Avoid predatory Red Ocean competition
strengthening innovative Blue Ocean operation
Differentiated Approach to Business Management;
Diff i dA h B i M
Audacity in winning strategic businesses;
New Markets;
New Businesses.
23. Blue Ocean Strategy
Avoid predatory Red Ocean competition
strengthening innovative Blue Ocean operation
Differentiated Approach to Business Management;
Diff i dA h B i M
Audacity in winning strategic businesses;
New Markets;
New Businesses.
24. Brazil s
Brazil's largest road concession operator
Toll Revenues
Concessionaires 3Q05
AutoBAn - 317 km
(April / 2028) 40%
NovaDutra - 402 km
(Feb / 2021)
26%
ViaOeste - 162 km
(April / 2023)
17%
RodoNorte - 488 km
(Dec / 2021)
Sorocaba
Ponte - 23 km 11%
(May / 2015)
ViaLagos -
Vi L 60 k
km
(Nov / 2021) 4%
RodoAnel – 32 km
( y
(May / 2038)
) 2%
TOTAL – 1,484 km*
* CCR also owns 40% of Renovias (345.6 km) and 10% of the Northwest Parkway – USA (18 km)
25. The most recent achievement of the Group: the West segment of the ring road
CAPTION
Ring Road – West Segment
Ring Road Project
CCR Concessionaires
Four-lane Highway
Highway Police
SOS Usuário
26. Unique Business Management
AutoBAn
• Anhanguera Complex 2nd Phase (R$ 340 million)
NovaDutra
• Marginais RJ / SJC / SP
• Serra das Araras (R$ 753 million)
• Safety works
• Other improvements (R$ 475 million)
33. Unique Business Management
Increased value of current agreements
• P j t to reduce escape routes
Projects t d t
• Expansion of the tolled base
• Demand for new investments vs. Adjusments to agreements
• Debt refinancing (Releverages)
34. Unique Business Management
Ring Road (West Segment)
• Conclusion of initial works
• Beggining of toll operations (Dec/08)
Bandeirantes – Rodoanel Interchange Anhanguera – Rodoanel Interchange
36. Unique Business Management
q g
1st Phase 2nd Phase 3rd Phase
Feb/10
Sep/09
Jul/09
ViaQuatro Oct/08 Operational
Tests
Commercial
Operation
May/08 Trains and
Long-term Equipment
Nov/07 financing
Aug/07 S.O.
Construction
Nov/06 S.O.
Project
May/06 Contract -
Supply
Contract
Signing
Bid
Organizational Development and Contract Management
37. Unique Business Management
q g
STP – Serviços e Tecnologia de Pagamento
• User Base Growth (1,158,307 in Sep/08)
• Agreements with 35 Concessionaries (82% of the tolls)
• Operating in 22 parking l t
O ti i ki lots (SP RJ and PR)
(SP, d
• 240 million transactions per month
Percentages of Revenues
57%
52%
50%
46%
Cash
40.2 %
Other
Electronic
54% 59.7 %
417M
Meios
50% Eletrônicos
21M
48%
32
273M
M
232M
43%
3Q05 3Q06 3Q07 3Q08
38. Unique Business Management
q g
STP – Serviços e Tecnologia de Pagamento
% Revenue (AVI)
Users (thousand)
UN's 9M08
VIAOESTE 55.6%
55 6%
AUTOBAN 58.7%
1,400
RENOVIAS 49.8%
1158 1,200
NOVADUTRA 55.0% 909 27% 1,000
RODONORTE 31.7% 740 23% 800
PONTE SA 39.4% 550 35% 600
VIALAGOS 28.9% 406
36%
286 400
194 42%
87 47% 200
122%
0
2001 2002 2003 2004 2005 2006 2007 2008
* Information up to the 9M08.
users growth
42. 2008 Traffic Performance
008 a c e o a ce
12%
11.1%
11 1%
10% 9.9%
9.0%
8.2%
8% 8.3%
8 3%
7.8%
6% 5.3%
4.5%
4%
2.7%
2%
0%
Jan Feb Mar Apr May Jun Jul Aug Sep
2008/2007
43. Traffic Performance
Index ABCRsp x Index CCR – Tolled Vehicles
Dec 2004=100
140
120
100
80
ABCRsp AutoBAn ViaOeste Renovias
44. Traffic Performance
Index ABCRbr x Index CCR - Tolled Vehicles
Dec 2004=100
D 2004 100
125
115
105
95
85
ABCR Brazil NovaDutra
45. Traffic Performance
Index ABCRpr x Index CCR – Tolled Vehicles
Dec 2004=100
125
115
105
95
85
Oct/07 Nov/07 Dec/07 Jan/08 Feb/08 Mar/08 Apr/08 May/08 Jun/08 Jul/08 Aug/08 Sep/08
ABCRpr RodoNorte
46. Motorization Index – Historical Evolution
Inhabitants per vehicle - Brazil
9.4
9.1 9.0
8.9 8.8
88
8.6
8.4 8.4 8.2 8.0
7.9 7.2
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Anfavea
Higher credit offering for the automobile industry
47. Motorization Index – Global View
9.1
Inhabitants per vehicle
7.9
79
7.4
1997
5.7
5.2
52
2006 4.7
4.3
3.1
1.8
1.7 1.5 1.7 1.5 1.7 1.7 1.7
1.3 1.2
South
Italy Australia USA France Canada Mexico Argentina Brazil
Korea
Source: Anfavea
If the same trend observed in other countries reflects in Brazil,
h d b di h i fl i B il
traffic x GDP elasticity ratio can increase significantly
50. Conclusions
• Characteristics of our highways minimize impacts from sector crises
crises.
• Historical traffic elasticity is 1.5x Brazil GDP.
• Favorable path in the motorization index could have a strong impact on traffic
indicators.
• Main driver of the recent acceleration in traffic growth is the stronger economic
growth in the regions where our toll roads are located.
52. Overview: CCR Group Concessions
p
Business Unit EBITDA Margin (%) Remaining Term (Year)
AutoBAn
A t BA 69.9%
69 9% 18.2
18 2
NovaDutra 59.2% 12.4
ViaOeste 70.5% 14.3
Ponte 48.7% 6.5
ViaLagos 55.3% 13.2
RodoNorte 62.9% 13.1
ViaQuatro 66.1% 30
RodoAnel
R d A l 79.0%
79 0% 29.6
29 6
Renovias 65.2% 13.6
58. Financial Aspects of the Current Portfolio
• CCR Group Financial Policy
• Risk Management
• Current Indebtedness
59. CCR Group Financial Policy
• Hedge
g
• Cash Management
• Leverage
• Dividends
60. Hedge Policy
Approved by the Board of Directors’ Meeting of October 27, 2005:
“foreign currency hedge p
g y g policy with 1-year maturity, combined with a periodic
y y y, p
scenario inspections and simulations of risk exposure and impact on the
Company’s expected results”
• To be revised in light of market conditions.
61. Foreign Exchange Exposure of the CCR Group – 09/08
• Ponte – USD 25 million with swap to 109.70% of the CDI rate
• Lagos – JPY 4 billion with swap to 103.20% of the CDI rate
• Line 4 – USD 28 million with swap to 125% of the CDI rate
• CCR USA – USD 27 million with no swap (the hedge is the stake in Northwest
Parway)
62. Cash Management
CCR C1 C2 C3 C4 C5
.......
FIQ Exc. CCR
FIM Exc. CCR
.......
Government BDC BDC BDC
Bonds Bank A Bank B Bank C
63. Cash Management
Date: 10/27/2008
Company Balance (R$ ‘000)
Actua Assessoria 826
Actua Serviços 1,750
Autoban 96,174
CCR 197,310
Engelog 3,473
NovaDutra 40,704
Ponte 5,895
Rodonorte 33,862
ViaOeste 107,504
ViaLagos 1,916
1 916
ViaQuatro 8,106
Rodoanel 140,729
Total 638,251
638 251
The RodoNorte and Via Quatro amounts correspond to 100% of the project.
64. Leverage
2,338
1,322
1,227
1,127 1,161 1,139
2.8
1.97
622
1.43
1.05 0.94
0.84
0.82
2002 2003 2004 2005 2006 2007 9M08
The maximum leverage permitted by our current financial policy is a net debt-to-EBITDA
ratio of 3.0x, which enables us to seek new opportunities with capital discipline.
65. Dividends
91% 86%
65%
60%
57%
16%
2003 2004 2005 2006 2007 2008E
Note: Cash basis
We reiterate our commitment to the market of distributing at least 50% of
annual net income in 6 monthly installments
income, installments.
66. Risk Management
Advisory Services Hired
PWC – Market Risk Management
objective – to provide CCR with tools to evaluate and manage business
risks through the @risk methodology, which allows the simulation of
methodology
impacts based on historical correlations and stress scenarios;
RiskOffice – specialized in measuring risks and suggesting protection
alternatives
objective – to make Management comfortable by creating “risk
committees” to permanently evaluate scenarios, confirm the
effectiveness of the hedge operations adopted and suggest any
necessary adjustments.
dj t t
67. Risk Management
Project Analysis Approach Impact on portfolio
(P) Current portfolio
Concessions
Probability assumptions - traffic, operating costs, investments,
interest and inflation rate
R$ (mi)
Scenarios (P) +
New project
Ke HR Average IRR
(P)
R$ ( )
$ (mi)
=
(P)
Current portfolio
IRR (NPV, Ebitda) Projected portfolio
Cash flow to the holding (divid.) R$ (mi)
Project risk evaluation based on probabilities for:
– IRR
Evaluation of risks in the portfolio
– Coverage of interest and principal
– Coverage of interest and principal
– Coverage of investments – Coverage of shareholder dividends
– Coverage of projected dividends – Availability of sufficient capital for future
investments
