2. CCR’s Unique Characteristics
• Leader in the Brazilian Toll Road Industry
• Well positioned for industry consolidation
• Excellent in Corporate Governance standards – tag along rights
• Proven track record
• Strong cash flow generation
• Low capex requirements for existing concessions
3. The Brazilian Toll Road Industry
• 39 Concessionaires
• There is no productivity factor into industry’s contracts
• Only 6% of paved Brazilian highways under concession private contracts
• 2001 Rvenues market share by player
•CCR – 35.2 %
•2nd – 11.4 %
•3th – 9.5 %
•4th – 6.5 %
•Others – 37.4 %
• Proven Legal framework
4. New Concessions Programs
Distance
Program (km)
2nd phase 2,583
3rd phase 5,205
São Paulo 2,755
Total 10,543
Source: DNER
Existing CCR Concessions
Polão
2nd phase of the Federal Concession Program
3rd phase of the Federal Concession Program
State of São Paulo Concession Program
Source: ABCR - Brazilian Highway Concession Association
6. Concessionaires
AutoBAn - Sistema Anhangüera - Bandeirantes
Limeira Main Characteristics
• A major highway system of State of
São Paulo, linking the capital to the
most industrialized section of the state
• 43% of CCR’s net revenues
Campinas
• Concession term 20 years, untill April
2018
• Average daily traffic 210,000 vehicle
equivalent
• Drivers:
•GDP
•Active management measures
São Paulo
7. Concessionaires
Nova Dutra Main Characteristics
• Linking two of the most important
industrial centers in the country:
São Paulo and Rio de Janeiro
• 34% of CCR’s net revenues
• Concession term 25 years, until
February 2021
• Average daily traffic 208,000
vehicle equivalent
• Drivers:
•Long traffic
•Comercial traffic
8. Concessionaires
Rodonorte
Apucarana Main Characteristics
• Most important toll road
concession of Paraná State –
used to transport agricultural
Jaguariaíva exports
• 15% of CCR’s net revenues
• Concession term 24 years, until
November 2021
• Average daily traffic 126,000
Ponta
Grossa
vehicle equivalent
Curitiba
• Drivers:
•Agricultural harvest
•Commercial traffic
9. Concessionaires
Ponte Rio - Niterói
Main Characteristics
• Linking Rio de Janeiro and
Niterói
• 5% of CCR’s net revenues
• Concession term 20 years, until
May 2015
• Daily commuters represent 70%
of traffic
• Average daily traffic 73,000
vehicle equivalent
• Drivers:
•GDP
10. Concessionaires
Via Lagos
Main Characteristics
• Linking the Lakes region, an
important tourist destination in
the State of Rio de Janeiro
• 3% of CCR’s net revenues
• Concession term 25 years,
untill December 2021
• Average daily traffic 13,000
vehicle equivalent
• Drivers:
•Leisure travel
11. 2002 Highlights
•First dividend payment:
•25% pay-out ratio, R$ 0.35 per share
•4.9% dividend yield
•Change in accounting practice for concession fees at AutoBAn and Via Lagos
•Similar to operational leases
•Waiting for final decision from the CVM
•Investor friendly
•Hedging Policy
•39% of our US$ denominated debt is now hedged
•Represents 100% of principal and interest payments due through 2004
•Reestructuring has prepared the Company for growth
•Created a shared service center
•Developed an engineering center
12. 2002 Performance
Consolidate d - (R$ thous ands ) 4Q02 4Q011 2002 20011
Gross Revenues 292,610 269,467 1,074,436 931,664
Net Revenues 270,916 253,249 1,000,337 870,295
Cost of Services Rendered (154,183) (121,284) (575,183) (468,542)
Administrative Expenses (37,081) (30,464) (138,531) (100,850)
EBITDA 128,456 138,343 472,242 441,242
EBIT 79,652 101,501 286,623 300,903
Net Financial Expenses 28,129 31,032 (463,585) (299,968)
Net Income (Loss) 88,939 86,131 (119,526) (13,523)
Notes:
1. Pro-forma, under new concession fee accounting treatment
18. Corporate Governance
• Listed on the Novo Mercado
•Only one type of share: common shares with voting rights
•Shareholders have Board representation
•Tag-along rights
• Any Board member may request an independent appraisal for any related
party transaction
•Veto right for 25% of votes, three Board members
• Dividend Policy: maximum pay-out after business plan needs are met
• Management benefits based on EVA
• Committed to Novo Mercado Arbitrage chamber
• Non competion clause with controlling shareholders
19. Growth Strategy - Existing Concessions
Operational level
• Toll collection improvement
•Repositioning toll plazas
•Bi-directional collection
• Cost officiencies coming from reetructuring undertaken in 2002
•Centralize administrative functions
•Leverage economies of scale
Electronic Toll Collection
• CCR views this as a strategic business, focused on:
•Minimizing the time it takes to stop and pay tolls
•Improving traffic conditions
20. Growth Strategy
Acquisition
• Sinergies with actual CCR concessionaries
• Opportunities to merge operations
• Seeks for controlling position
New Concessions
• Decision making factors:
•Funding basic structure
•60% debt at the operating company level
•20% cash from the concession itself
•20% equity from CCR
•IRR attractiveness standards:
•18%~20% p.a. Unleverage
•25% p.a. leverage
•Immediately add value on an NPV basis