2. Disclaimer
This presentation contains forward-looking statements concerning the business
prospects, estimates of operating and financial results and growth outlook of
arteris Brasil, which are based exclusively on the expectations of the
management of arteris concerning the future of its business and its continued
access to capital to fund its business plan.
These forward-looking statements may be affected by on changes in market
conditions, government regulations, industry performance, new highway
privatization programs, the economic scenario and other factors, as well as the
risks described in the disclosure documents filed by OHL Brasil, and are subject to
change without prior notice.
4. History and profile
CAGR 07-11
Net Revenue – R$ million
2,712 44.87% Largest company in Brazil’s toll-road industry in
Adjusted EBITDA – R$ million kilometers managed: 3,226 km in operation
CAGR 07-11
1,195 29.14%
616
430
2007 2011
Launch of
operations in State
1997
Brazil
Acquisition of
1998
6% of Autovias
2001 Federal
Autovias Centrovias Acquisition
2002
Acquisition
2004 Intervias Acquisition
2005
IPO
Presence in 5 states that concentrate:
Vianorte – 65% of the country’s GDP
2006
Acquisition – 43% of the country’s population
– 2/3 of the country’s vehicle fleet
2007 21% market share of total kilometers of highway
Launches 2nd Round of the
ANTT’s Auction
operated under concession
operations of 2008 Federal Highway 16% market share of total toll plazas revenues of
Litoral Sul, Planalto Concession
Sul, Fluminense, highway operated under concession
Program
Régis Bittencourt
and Fernão Dias
Traffic: 669.4 million vehicles in 2011
4
5. New structure with Abertis and Brookfield
Pre Deal Structure Post Deal Structure
Abertis and Brookfield offer 10% of Abertis´s
shares in exchange for 100% of Partícipes
Minority
Minority
shareholders
Brasil
shareholders
Abertis and Brookfield take R$ 1.230 millions
in debts from Particícipes Brasil
Abertis and Brookfield pay OHL. S.A. € 10.7
million in cash
OHL S.A. becomes a reference
shareholder of Abertis
Abertis now holds 51% of arteris and
Brookfield 49%
5
6. Abertis – World Leader in the management of transportation and
telecom infrastructure
Highways 3.700 km of highways concessions in Europe and Latin America
Airports Presence in 29 airports in Europe, North America ans Latin America
Telecom 3.300 transmission towers in Spain and major shareholder in the Spanish satellite operations
Geographic Presence Global Revenues Global EBITDA
12 countrys Airports
3 sectors Telecom
11,000 employees 13% 8%
Airports
3% 88
9% %
Telecom
79%
Highways
Highways
Rest of
Spain the Spain
Chile world
48
UK 2%
4% % 51%
Rest of the world 3%
5% Chile 5%
UK 5%
37 39%
% France
France
Total 2011: € 3.9 billion Total 2011: € 2.5 billion
6
7. Abertis and Brookfield
Strategy for arteris
Strong and recurrent cash generation
Value generation
Recurrent and sustainable distribution of dividends
Conservative capital structure to facilitate new investments and supporting the dividend policy of
arteris
Reference partner to the local authorities
Maintain the company listed at BM&Fbovespa increasing liquidity
Long term investments in Brazil looking for new opportunities
Management focused on improving margins and delivery of projects according to scheduled scope,
Efficiencies and Opportunities
and budget
Efficient planning using best practices and experiences of Abertis and Brookfield, folowing the
contractual obligations
Search opportunities for acquisitions of highway concessions and participation in future new
concessions
Improvement in financial management reducing the cost of capital of the company, optimizing its
capital structure
7
8. Concessions in Brazil
History of the Regulatory Framework Basic principles
Operation of highways delegated to the private sector
Passing of Law 8.666 establishing concession contracts and
1993
bidding processes through concession contracts
1993 Launch of federal highway concession program Granting of concession preceded by bidding process
Law 9.277 authorizes federal government to delegate to states
1996 and municipalities the management and operation of certain Charging of tolls
federal highways
States of São Paulo, Paraná and Rio Grande do Sul conduct their Economic and financial equilibrium
1997/8
own highway concession programs
Launch of restructuring process in the transportation sector by Annual toll adjustment based on inflation
2001
the federal government, creating CONIT, ANTT and DNIT
Creation of São Paulo State Public Transportation Services
Concessionaires assume operational risks and investments
2002
Regulatory Agency (ARTESP) in highways
Dissolution of DNER; DNIT and ANTT assume respectively highway
Public assets returned in good conditions at the end of the
2003 construction / maintenance projects and the regulation, granting
and supervision of concessions concession period
Responsibilities
Concession Regulatory
Authority Agency
Reduction
Grant the right to Develop concession models in “Brazil Dramatic
increase in
operate public Manage contracts and ensure
assets
Concessionaire
economic and financial Cost”
service
equilibrium
Supervise and control
compliance with contractual
quality
Improve
transportation
infrastructure
terms
Reduction in
Operate highways
Provide high
Accidents
quality services
to users User
8
9. Concessions in Brazil
Highways - Federal
In operation Projected
First round 1,473.5 km Third round Phase 1 2,046.0 km
BR 040 RJ-MG Rio de Janeiro - Juiz de Fora 179.7 km BR 040 DF-MG Brasília - Junction BR 135 590.0 km
BR 116 RJ Rio de Janeiro - Teresópolis - Além Paraíba 142.5 km BR 040 MG Junction BR 262/381 (BH) - BR 135 109.0 km
BR 101 RJ Ponte Rio-Niterói 13.2 km BR 040 MG Junction BR 356 (BH) - Juiz de Fora 230.0 km
BR 116 RJ-SP Rio de Janeiro - São Paulo 402 km BR 116 MG BA-MG / MG-RJ 817.0 km
BR 290 RS Osório - Porto Alegre 112.3 km BR 381 MG Junction MG 020 (BH) - Gov . Valadares 301.0 km
BR 116-293-392 RS Pólo de Pelotas 623.8 km
Third round Phase 2 1.993.0 km
Second round Phase 1 2,620.8 km BR 060 DF-GO Junction DF 001 (Brasília) - BR 153 126.0 km
BR 116 SP-PR São Paulo - Curitiba 401.6 km BR 153 GO Junction BR 060 - GO/MG Border 260.0 km
BR 381 MG-SP Belo Horizonte - São Paulo 562.1 km BR 101 ES RJ-ES / ES-BA 458.0 km
BR 116-376 + BR 101 PR + SC Curitiba - Florianópolis 382.3 km BR 101 BA ES-BA - Junction BR 324 791.0 km
BR 101 RJ Rio de Janeiro - Espírito Santo 320.1 km BR 470 SC Nav egantes - SC/RS 359.0 km
BR 153 SP São Paulo - Paraná 321.6 km
BR 116 SC Curitiba (SC and RS) 412.7 km Airports
BR 393 RJ-MG Minas Gerais - Rio de Janeiro 220.4 km
Second round Phase 2 680.6 km
In operation Projected
State Airport PAX / year State Airport PAX / year
BR 116 / 324 BA BR 116 - Feira de Santana 554.1 km
BR 324 - Salv ador - Feria 113.2 km RN São G. Amarante 2.3 million* RJ Galeão 15 million
BR 526 - BR 324 - BA 528 9.3 km SP Guarulhos 30 million MG Confins 9.3 million
BR 528 - BA 526 - Aratu 4.0 km
SP Viracopos 7.5 million NE / N TBD n.a.
DF Brasília 15 million
Highways - State, Municipal and PPPs
* Estimated. Airport under construction
State Contracts 10,054 km PPPs Contracts 377 km
SP (4) 18 5,299 km MG 1 371 km
RS / PR 13 4,270 km PE 1 6 km
RJ / BA / ES 4 485 km
Municipal Contracts 35 km
RJ 1 35 km
9
10. The Sector in numbers
Intervias (SP)
Freight transport matrix National vehicle fleet – MM
39.6
61%
Highway
Air 0.4% 18.2
4%
Pipeline
10.6
14%
Waterway 21% 1.6
Light Commercial Motorcycle Other
Rail
General conditions of Brazil’s highways
Public Highways Concession Highways
Excellent Poor
Very poor Fair
1%
9% 3% 12%
Good
25%
Poor 20% 45% Excellent
Good 42%
32%
Fair
Source: CNT 2011 Highway Survey and Denatran
10
11. The Sector in numbers
Brazil’s Road Network Paved Under Concession
Under
Unpaved Concession
16% Concessionaires
7% São Paulo: 19
34% 12% Paraná: 6
86% 14% R.G. do Sul: 7
7% PE/BA/ES/MG/RJ: 9
Paved Federais: 14
93%
No
Concession
31%
1.6 MM Km 214,413 Km 15,473 Km
Key figures in the private sector (2007-2011)
+R$35 MM
Social
27,000 Km Responsibility R$1.5 bi
Paving and Vehicles
R$ 8.3 bi
Resurfacing
55 2011
Concessionaires
Taxes R$14 bi
47,000
Investments
Jobs
15,500 Km
Granted
Source: ABCR
11
12. arteris
Current Portfolio
Toll Plaza Litoral Sul
Revenue 2011 Litoral Sul EBITDA 2011
Autovias Autovias
Régis
Régis 8% 14% 6% 17%
12%
13%
Fernão
14% Centrovias Dias 7%
Fernão 11% 5% 17% Centrovias
Dias Fluminense
3%
7% 16%
Planalto
Sul
Fluminense 4% 15% 19%
Federal
13% Intervias
Planalto Vianorte
State Intervias
Sul Vianorte
Key financial data for concessions – R$ MM
State Federal
Net Revenue Adjusted EBITDA Adjusted EBITDA Margin Net Revenue Adjusted EBITDA Adjusted EBITDA Margin
78.4% 78.9% 53.6%
75.1% 74.5% 77.0% 49.4% 50.8% 48.1% 49.6%
70.2% 71.5% 48.8% 48.3%
65.6% 67.9% 46.1% 46.5%
44.2%
60.5% 41.4% 42.0% 42.9%
996
896 204 208
196 197
776 780 811 180 182 188
724 690 170
617 640 25.0% 152
578 138 138 140
507 546 544 128
465 441 100 101 104 103
383 88 88 97 95
360 344 79
305 61 60 70
218 48 53 58
25
2003 2004 2005 2006 2007 2008 2009 2010 2011 9M12 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
* Excludes revenue from construction * Excludes revenue from construction
12
13. arteris
Current Portfolio: State Concessions (2011)
Autovias Centrovias
Length Length
316.6 km 218.2 km
Toll Plazas Toll Plazas
5 5
Duration Duration
August 2018 June 2018 2019
Vehicle Equivalents Vehicle Equivalents
42.9 MM 47.6 MM
Net Revenue Net Revenue
R$ 252 MM R$ 254 MM
Adjusted EBITDA Adjusted EBITDA
R$ 193 MM R$ 194 MM
Intervias Vianorte
Length Length
375.7 km 236.6 km
Toll Plazas Toll Plazas
9 4
Duration Duration
January 2028 March 2018
Vehicle Equivalents Vehicle Equivalents
58.5 MM 33.1 MM
Net Revenue Net Revenue
R$ 291 MM R$ 231 MM
Adjusted EBITDA Adjusted EBITDA
R$ 215 MM R$ 178 MM
13
14. arteris
Current Portfolio: Federal Concessions (2011)
Planalto Sul Régis Bittencourt
Length Length
412.7 km 401.6 km
Toll Plazas Toll Plazas
5 6
Duration Duration
February 2033 February 2033
Vehicle Equivalents Vehicle Equivalents
27.9 MM 143.7 MM
Net Revenue Net Revenue
R$ 200 MM R$ 490 MM
Adjusted EBITDA Adjusted EBITDA
R$ 32 MM R$ 133 MM
Fluminense Litoral Sul
Length Lengtth
320.1 km 382 .3 km
Toll Plazas Toll Prazas
5 5
Duration Duration
February 2033 February 2033
Vehicle Equivalents Vehicle Equivalents
46.8 MM 115.6 MM
Net Revenue Net Revenue
R$ 215 MM R$ 313 MM
Adjusted EBITDA Adjusted EBITDA
R$ 61 MM R$ 67 MM
Fernão Dias
Length
562.1 km
Toll Plazas
8
Duration
February 2033
Vehicle Equivalents
153.2 MM
Net Revenue
R$ 392 MM
Adjusted EBITDA
R$ 81 MM
14
15. Concessions in Brazil
Rate of return on projects and the new market reality
Evolution of the real interest rate*
25.04% 26.36%
18.26%
15.93% 14.78% 12.69% 12.59% 11.53%
10.71%
8.86%
7.90% 7.00% 6.06%
5.75% 5.30% 4.79%
3.59% 1.73% 1.76%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E
* CDI annual – IPCA annual (sources: CETIP e IPEA)
1990s 2000s New reality
Start of concession program Political and economic stability Regulatory framework well consolidated
Unknown regulatory framework BNDES financing up to 70% of the Execution track record
Higher execution risk capex Brazil reaches investment grade
Higher country risk
Strong competition for projetcs
Lower competition for assets
arteris – Federal
Concessions Airport Bids
2007
Guarulhos / Viracopos / Brasília
arteris breaks the
paradigm of high
arteris – State Concessions toll tariffs
Profitability achieved Marginal IRR
despite low tolls Discussion to
IRR* tariffs and capex
execution
IRR* IRR** determine IRRs
17-20% 8-9% <8% applied to the
contract
addendums in
* Real Project IRRs (contract) force
** Estimates based on information from market´s
analysts 15
17. Tolled Traffic
Last 12 months
2011
Var.
9M12
Var.
3Q12 Litoral Sul Autovias
2010x2011 9M12 x 9M11 Centrovias
State 182,180 14.3% 139,908 3.3% 50,351 6%
Autovias 42,931 2.6% 32,629 1.9% 11,656 18% 7%
Centrovias 47,642 62.8% 37,189 5.4% 13,446 Intervias
Intervias 58,534 2.9% 44,686 2.6% 16,069 9%
Vianorte 33,073 5.1% 25,405 3.4% 9,180
Régis 5% Vianorte
Federal
Planalto
487,193
27,969
11.5%
4.8%
375,646
20,838
4.5%
-0.2%
128,053
7,029
21% 4%
Planalto
Fluminense 46,778 7.6% 36,497 5.2% 12,183 7% Sul
Fernao 153,191 25.9% 119,060 5.1% 41,253
Fluminense
Regis 143,705 5.5% 108,547 2.1% 37,100
23%
Litoral 115,550 6.0% 90,704 7.3% 30,488
Total 669,372 12.3% 515,554 4.1% 178,404
Fernão
Dias
Elasticity
62.8% growth at Centrovias in 2011 compared to 13.50%
Federal State GDP
2010 due to the implementation of bidirectional toll 11.01%
collection at the four toll plazas
6.60% 6.19% 6.72%
Growth of 25.9% at Autopista Fernão Dias in 2011 3.96%
3.16% 7.53% 3.88%
compared to 2010 due to the inauguration of its last 6.09%
5.17%
toll plaza in September 2010 -0.33%
2.73%
3.02% 2.33%
2005 2006 2007 2008 2009 2010 2011
-0.34%
Toll Plaza– Autopista Fernão Dias (MG) 17
19. Average toll tariff
Avg Toll Tariff
Var Var.
(R$ / Vehicles 3Q12 2Q12 3Q11
3Q12/2Q12 3Q12/3Q11
Equivalents)
State 6.46 6.21 6.19 4.1% 4.5%
Autovias 6.76 6.57 6.52 2.8% 3.6%
Centrovias 6.16 5.92 5.91 4.2% 4.3%
Intervias 5.62 5.36 5.35 4.8% 5.0%
Vianorte 8.01 7.65 7.66 4.7% 4.6%
Federal 1.79 1.79 1.69 0.0% 5.9%
Planalto Sul 3.30 3.30 3.10 0.0% 6.5%
Fluminense 3.10 3.10 2.80 0.0% 10.7%
Fernão Dias 1.40 1.40 1.30 0.0% 7.7%
Régis Bittencourt 1.80 1.80 1.70 0.0% 5.7%
Litoral Sul 1.42 1.42 1.40 0.0% 1.3%
Total 3.11 3.00 2.96 3.5% 5.0%
The tolls charged by state concessionaires are adjusted annually, on July 1 of
each year, by the annual rate of inflation measured by IGP-M index.
On federal highways the adjustments are implemented each year based on
IPCA inflation in the 12 months as from the previous adjustment, and adopting
the criteria of rounding to the first decimal place. The toll adjustment is
implemented in February for Autopista Fluminense and Autopista Litoral Sul and
in December for Autopistas Fernão Dias, Régis Bittencourt and Planalto Sul.
19
20. Financial Highlights
Traffic – MM vehicle equivalent units Gross Revenue – R$ MM
669 105
596 80
94 896
495 516
618 80 823 Others
597 Construction
Toll
171 178 1,899 25
1,631 1,550 25
1,395 256 298
507 554
2010 2011 9M11 9M12 3Q11 3Q12
2010 2011 9M11 9M12 3Q11 3Q12
Adjusted EBITDA and Margin* – R$ MM / % Net Income – R$ MM
62,6% 65,8% 66,7% 65,4% 70,5% 68,3%
404
1.195
304 300 297
980 965
892
138
339 358 103
2010 2011 9M11 9M12 3Q11 3Q12 2010 2011 9M11 9M12 3Q11 3Q12
* Excludes revenue from construction
Toll Plaza - Autovias (SP) 20
21. Costs and Expenses
R$ thousand
Cash Costs - 2Q12
(1,905)
(204) Cash Cost 1% 12%
1%
2%
(1,533) (183) Cost of Construction Services 28%
3%
(175)
Provision for highway Maintenance 6%
(146)
Depreciation and Amortization 5%
(896)
(618) 14%
28%
(602)
(493) (65)
(51) (72)
(43) Third party services
(594) (621) (256) (298)
Personnel
(142) (166) Conservation
Inspection fee
2010 2011 3Q11 3Q12
Costs with granting authority
Cash costs as % Net Revenue (ex. construction) Insurance and Guarantees
37.4% 34.2% 29.5% 31.7% Management compensation
Civil, labor and Tax risks
Tax expenses
2010 2011 3Q11 3Q12 Other
21
25. Investments
Main works completed and ongoing projects
Repaving Ongoing projects - Federal
Duplication of 59.6 km of the BR 101/RJ between the cities of
Macaé and Campos de Goytacazes, which was begun in the
3Q11, as soon as the construction license was obtained from
IBAMA. Approximately R$ 200 million will be invested in this first
phase. Altogether the project includes the duplication of176.6
km
Fluminense
Before After
Fernão Dias Construction of the second phase of Betim (MG) belt, a 9 km
Grass cutting bypass. Connecting the two extremities of the highway will make
it possible to create an alternative route for long-distance
through traffic. Expected investment in the project is around
R$40 million. Construction began in October 2011.
Construction of the initial and final stretches of the second lane
Régis on Serra do Cafezal Highway (BR 116/SP), on 11 km of road near
Before After the cities of Juquitiba and Miracatu. In all, 30 km of highway will
be expanded. The license for the central stretch was approved
Drainage in late December 2012 by the environmental agency. In all, R$
700 million should be invested in this project.
Construction of a total of 12.2 km of side streets in municipalities
of Camburiú (SC), Tijucas (SC), Itapema (SC) e Itajaí (SC).
Completion of a traffic interchange in the industrial district of São
José dos Pinhais (PR), and a traffic interchange at the junction of
Before After the Contorno Leste Curitiba. Completion of the structural
reinforcement and extension of two (2) viaducts and
Signage Litoral Sul construction of two (2) walkways and one (1) operational base in
Biguaçu (SC).
Planalto Sul Duplication of 25 km of Highway BR-116, between Curitiba and
Mandirituba, which was begun in October 2011. The project will
require investments of approximately R$ 70 million.
Before After
25
27. Opportunities
Highways
Next Federal Highways Programed Federal Highways
BR-116/MG (25 years)
• Strech of Highway BR-116 in the state of
Minas Gerais between Além Paraíba and
Divida Alegre. Connects the strech of BR-
393 RJ and BR-116 BA already granted, for
a total of 817 km
• 8 toll plazas
Antes • Toll Tariff: R$ 6.41 (Per Plaza)
• Revenue: R$ 13.6 billion
• Estimated Capex: R$ 5.07 billion
• Term: 25 years
• Auction: January/2013
BR-040 (DF/GO/MG) (25 years)
• Strech of Highway BR-040 starting in the
Federal District, at the interchange with
Highway BR 251, and ending in Juiz de
Fora (MG) at the start of the strech
granted to the operator CONCER, for a
total of 937 km in
• 11 toll plazas
• Toll Tariff: R$ 4.22 (Per Plaza)
• Revenue: R$ 16.0 billion
• Estimated Capex: R$ 6.63 billion
• Term: 25 years
• Auction: Janeiro/2013
Source: ANTT, Federal Government and Internal Studies (Base Date: Jan/12)
27
31. Financing
BNDES – R$ ‘000 Debentures – R$ ‘000
Max. %
Planalto Amount Cost Term Autovias Issue Cost Due Rating Moody's
Financed
Subcredit A 184.057 TJLP + 2.58% a.a. 144 months 1st Series 285.000 CDI + 1.6% p.a. March-15
Subcredit B 90.007 TJLP + 2.58% p.a. 138 months 2nd
Series 120.000 IPCA + 8% p.a. March-17 Aa2.br Ba1
Subcredit C 57.280 TJLP + 2.58% p.a. 120 months nd
2 Issue 100.000 CDI + 1.7% p.a. November-15
Total 331.344 68%
Total 505.000 National Global
Max. %
Fernão Amount Cost Term
Financed Centrovias Issue Cost Due Rating Moody's
Subcredit A 493.382 TJLP + 2.21% p.a. 144 months
1st Series 286.131 CDI + 1.7% p.a. March-15
Subcredit B 159.300 TJLP + 2.21% p.a. 138 months Aa2.br Ba2
Subcredit C 50.072 TJLP + 2.21% p.a. 123 months
nd
2 Series 120.000 IPCA + 8% p.a. March-17
Total 702.754 70% Total 406.131 National Global
Max. %
Régis Amount Cost Term Intervias Issue Cost Due Rating Moody's
Financed
Subcredit A 446.395 TJLP + 2.21% p.a. 144 months 1st Issue 307.947 CDI + 1.5% p.a. March-15
Aa1.br Baa3
Subcredit B 623.100 TJLP + 2.21% p.a. 126 months nd
2 Issue 300.000 CDI + 1.7% p.a. November-15
Total 1.069.495 65% Total 607.947 National Global
Max. %
Litoral Amount Cost Term Vianorte Issue Cost Due Rating Moody's
Financed
Subcredit A 508.122 TJLP + 2.32% p.a. 144 months
1st Series 153.776 CDI + 1.7% p.a. March-15
Subcredit B 297.964 TJLP + 2.32% p.a. 120 months Aa3.br Ba2
2nd Series 100.000 IPCA + 8% p.a. March-17
Subcredit C ¹ 4.051 TJLP 120 months
Total 810.137 68% Total 253.776 National Global
Max. % General Total 1.772.854
Fluminense Amount Cost Term
Financed
Subcredit A 403.712 TJLP + 2.45% p.a. 144 months
Subcredit B 373.204 TJLP + 2.45% p.a. 125 months
Subcredit C ¹ 3.903 TJLP 125 months
Total 780.819 70%
General Total 3.694.549
¹ Resources destinated to social investments
31
32. Ownership Structure
Brookfield Asset Management Inc
51.0% 49.0%
Participes en Brasil S.L.
60.0%
federal concessions SÃO PAULO - state concessions other
100% 100%
100,0%
100,0%
4.68%
32
33. Term of the Concessions
Average duration of concessions in our portfolio is 15.9 years
Years elapsed Years pending
21 21 21 21 21
16
7 8 7
4 4 4 4 4
13 13 12 13
State Concessions Federal Concessions
33
34. R. Joaquim Floriano, 913 – 6º andar
Itaim Bibi – São Paulo – SP
CEP 04534-013
Tel: +55 11 3074-2410
Visit our website:
www.arteris.com.br/ir
Investor Relations