Arteris. Company Presentation

Transcription

1 Arteris Company Presentation May 2013

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 Arteris, and are subject to change without prior notice.

3 Centrovias (SP) Arteris and the toll-road industry

4 History and profile Net Revenue R$ million Adjusted EBITDA R$ million ,119 1,314 CAGR % CAGR % Largest company in Brazil s toll-road industry in kilometers managed: 3,226 km in operation Launch of operations in Brazil Acquisition of 6% of Autovias State Autovias Acquisition Centrovias Acquisition Federal 2004 Intervias Acquisition Vianorte Acquisition Launches operations of Litoral Sul, Planalto Sul, Fluminense, Régis Bittencourt and Fernão Dias Abertis and Brookfield as new controlling shareholders nd Round of the Federal Highway Concession Program ANTT s Auction IPO 2007 Presence in 5 states that concentrate: 65% of the country s GDP 43% of the country s population 2/3 of the country s vehicle fleet 21% market share of total kilometers of highway operated under concession 16% market share of total toll plazas revenues of highway operated under concession Traffic: million vehicles in

5 New structure with Abertis and Brookfield Pre Deal Structure Post Deal Structure Minority shareholders Minority shareholders Abertis and Brookfield offer 10% of Abertis s shares in exchange for 100% of Partícipes Brasil Abertis and Brookfield take R$ 1.2 billion in debts from Particícipes Brasil Abertis and Brookfield pay OHL. S.A 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 Airports Telecom km of highways concessions in Europe and Latin America Presence in 29 airports in Europe, North America ans Latin America transmission towers in Spain and major shareholder in the Spanish satellite operations Geographic Presence Global Revenues Global EBITDA 12 countrys 3 sectors 11,000 employees Telecom 12% 8% Airports Airports Telecom 3% 89 8% % Highways 80% Highways Chile Rest of the world UK 6% 7% 5% 45 % Spain Rest of the world UK 4% 2% Chile 7% 48% Spain France 37 % France 39% Total 2012: 4.0 billion Total 2012: 2.5 billion 6

7 Value generation Efficiencies and Opportunities Abertis and Brookfield Strategy for Arteris Strong and recurrent cash 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 operations and investment cost efficiency, margin improvements and delivering of projects according to scope, schedule and budget. Efficient planning using best practices and experiences of Abertis and Brookfield, following 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 1993 Passing of Law establishing concession contracts and bidding processes 1993 Launch of federal highway concession program / Law authorizes federal government to delegate to states and municipalities the management and operation of certain federal highways States of São Paulo, Paraná and Rio Grande do Sul conduct their own highway concession programs Launch of restructuring process in the transportation sector by the federal government, creating CONIT, ANTT and DNIT Creation of São Paulo State Public Transportation Services Regulatory Agency (ARTESP) Dissolution of DNER; DNIT and ANTT assume respectively highway construction / maintenance projects and the regulation, granting and supervision of concessions Basic principles Operation of highways delegated to the private sector through concession contracts Granting of concession preceded by bidding process Charging of tolls Economic and financial equilibrium Annual toll adjustment based on inflation Concessionaires assume operational risks and investments in highways Public assets returned in good conditions at the end of the concession period Responsibilities Concession Authority Grant the right to operate public assets Improve transportation infrastructure Operate highways Provide high quality services to users Concessionaire User Regulatory Agency Develop concession models Manage contracts and ensure economic and financial equilibrium Supervise and control compliance with contractual terms Reduction in Accidents Reduction in Brazil Cost Dramatic increase in service quality 8

9 Concessions in Brazil Highways - Federal In operation First round 1,473.5 km BR 040 RJ-MG Rio de Janeiro - Juiz de Fora km BR 116 RJ Rio de Janeiro - Teresópolis - Além Paraíba km BR 101 RJ Ponte Rio-Niterói 13.2 km BR 116 RJ-SP Rio de Janeiro - São Paulo 402 km BR 290 RS Osório - Porto Alegre km BR RS Pólo de Pelotas km Second round 2,620.8 km BR 116 SP-PR São Paulo - Curitiba km BR 381 MG-SP Belo Horizonte - São Paulo km BR BR 101 PR + SC Curitiba - Florianópolis km BR 101 RJ Rio de Janeiro - Espírito Santo km BR 153 SP São Paulo - Paraná km BR 116 SC Curitiba (SC and RS) km BR 393 RJ-MG Minas Gerais - Rio de Janeiro km Second round Phase 1 Phase km BR 116 / 324 BA BR Feira de Santana km BR Salvador - Feria km BR BR BA km BR BA Aratu 4.0 km Highways - State, Municipal and PPPs State Contracts 10,054 km PPPs Contracts 377 km Forecasted Third Round Expected Auctions - Federal Highways BR 040 DF-MG km BR 116 MG km BR 101 BA km BR 262 ES-MG km BR 153 GO-TO km BR 050 GO-MG km BR 163 MT km BR 163/267/262 MS km BR 060/153/262 DF-GO-MG km Airports In operation Forecasted State Airport PAX / year State Airport PAX / year RN São G. Amarante 2.3 million* RJ Galeão 15 million SP Guarulhos 30 million MG Confins 9.3 million SP Viracopos 7.5 million DF Brasília 15 million * Estimated. Airport under construction SP (4) 18 5,299 km RS / PR 13 4,270 km RJ / BA / ES km MG km PE 1 6 km Municipal Contracts 35 km RJ 1 35 km 9

10 Intervias (SP) The Sector in numbers Freight transport matrix National vehicle fleet MM 61% Highway 39.6 Air Pipeline 0.4% 4% 14% Waterway 21% Rail Light Commercial Motorcycle Other General conditions of Brazil s highways Public Highways Very poor 9% Excellent 3% Concession Highways Poor Fair 12% 1% Poor 20% 25% Good 45% Excellent Good 42% 32% Source: CNT 2011 Highway Survey and Denatran Fair 10

11 The Sector in numbers Brazil s Road Network Paved Under Concession Unpaved 7% Under Concession 34% 16% 12% Concessionaires São Paulo: 19 Paraná: 6 86% 14% 7% R.G. do Sul: 7 PE/BA/ES/MG/RJ: 9 Paved No Concession 93% 31% Federais: MM Km 214,413 Km 15,473 Km Key figures in the private sector ( ) R$ 8.3 bi Taxes R$14 bi Investments 27,000 Km Paving and Resurfacing 47,000 Jobs +R$35 MM Social Responsibility 55 Concessionaires 15,500 Km Granted R$1.5 bi Vehicles 2011 Source: ABCR 11

12 Arteris Current Portfolio Toll Plaza Revenue 2012 Litoral Sul EBITDA 2012 Federal State Fernão Dias Régis Fluminense 12% 11% Planalto Sul 7% 4% 8% 13% Vianorte 14% Autovias 15% 16% Intervias Centrovias Fernão Dias Fluminense Planalto Sul Régis 7% 6% 2% Vianorte Litoral Sul 11% 6% 15% Autovias 17% 18% 19% Intervias Centrovias Key financial data for concessions R$ MM State Net Revenue Adjusted EBITDA Adjusted EBITDA Margin 75% 75% 77% 78% 79% 79% 66% 68% 70% 71% 61% Federal Net Revenue Adjusted EBITDA Adjusted EBITDA Margin 54% 41% 44% 42% 43% 46% 47% 49% 48% 49% 51% 48% 50% 48% 51% % Q13 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 * Excludes revenue from construction * Excludes revenue from construction 12

13 Arteris Current Portfolio: State Concessions (2012) Autovias Centrovias Length km Toll Plazas 5 Duration August 2018 Vehicle Equivalents 44.1 MM Net Revenue R$ 271 MM Adjusted EBITDA R$ 213 MM Length km Toll Plazas 5 Duration June Vehicle Equivalents 50.7 MM Net Revenue R$ 282 MM Adjusted EBITDA R$ 225 MM Intervias Vianorte Length km Toll Plazas 9 Duration January 2028 Vehicle Equivalents 60.5 MM Net Revenue R$ 307 MM Adjusted EBITDA R$ 240 MM Length km Toll Plazas 4 Duration March 2018 Vehicle Equivalents 34.4 MM Net Revenue R$ 248 MM Adjusted EBITDA R$ 195 MM 13

14 Arteris Current Portfolio: Federal Concessions (2012) Planalto Sul Régis Bittencourt Length km Toll Plazas 5 Duration February 2033 Vehicle Equivalents 27.9 MM Net Revenue R$ 83 MM Adjusted EBITDA R$ 25 MM Fluminense Length km Toll Plazas 6 Duration February 2033 Vehicle Equivalents MM Net Revenue R$ 241 MM Adjusted EBITDA R$ 142 MM Litoral Sul Length km Toll Plazas 5 Duration February 2033 Vehicle Equivalents 48.9 MM Net Revenue R$ 136 MM Adjusted EBITDA R$ 73 MM Fernão Dias Lengtth km Toll Prazas 5 Duration February 2033 Vehicle Equivalents MM Net Revenue R$ 158 MM Adjusted EBITDA R$ 71 MM Length km Toll Plazas 8 Duration February 2033 Vehicle Equivalents MM Net Revenue R$ 206 MM Adjusted EBITDA R$ 93 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% 10.71% 11.53% 8.86% 7.90% 5.75% 7.00% 6.06% 5.30% 3.59% 4.79% 1.85% 2.08% 2.61% E 2014E * CDI annual IPCA annual (sources: CETIP e IPEA) 1990s Start of concession program Unknown regulatory framework Higher execution risk Higher country risk Lower competition for assets Arteris State Concessions 2000s Political and economic stability BNDES financing up to 70% of the capex Arteris Federal Concessions 2007 Arteris breaks the paradigm of high toll tariffs New reality Regulatory framework well consolidated Execution track record Brazil reaches investment grade Strong competition for projetcs Airport Bids Guarulhos / Viracopos / Brasília IRR* 17-20% * Real Project IRRs (contract) ** Estimates based on information from market s analysts Profitability achieved despite low tolls tariffs and capex execution IRR* 8-9% IRR** <8% Marginal IRR Discussion to determine IRRs applied to the contract addendums in force 15

16 Highlights Operating and Financial 16

17 Tolled Traffic 1Q13 4Q12 1Q12 Var 1Q13/4Q12 Var. 1Q13/1Q12 State 46,437 49,785 44, % 5.4% Autovias 10,709 11,473 10, % 4.7% Centrovias 12,768 13,507 11, % 7.6% Intervias 14,601 15,785 14, % 3.9% Vianorte 8,359 9,020 7, % 5.8% Federal 127, , , % 0.5% Planalto 6,906 7,107 6, % -0.2% Fluminense 12,045 12,416 12, % -5.4% Fernao 39,478 41,647 39, % 1.0% Regis 36,076 37,550 36, % 0.2% Litoral 32,789 32,628 31, % 3.0% Total 173, , , % 1.8% Elasticity Federal State GDP 13,50% 11,01% 6,60% 6,19% 6,72% 3,88% 4,10% 3,16% 3,96% 7,53% 6,09% 5,17% 4,10% 3,02% 2,33% -0,34% -0,33% 2,73% 0,90% Toll Plaza Autopista Fernão Dias (MG) 17

18 Tolled Traffic Commercial vs. Light - % Vehic. Equivalents State 60% 63% 63% 61% 62% 64% 60% 62% 60% 62% 64% 62% 60% 40% 37% 39% 40% 37% 38% 38% 40% 39% 38% 40% 36% 36% Electronic Toll Collection (AVI) - % Vehic. Equivalents 54% 56% 57% 57% 58% 60% 62% 61% 61% 62% 63% 62% 61% 42% 44% 44% 45% 47% 47% 47% 47% 35% 37% 38% 40% 32% Commercial Light State Federal 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Federal 72% 77% 76% 74% 73% 76% 76% 74% 72% 75% 75% 73% 71% 28% 24% 24% 26% 27% 24% 24% 26% 28% 25% 25% 27% 29% Commercial Light 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 18

19 Average toll tariff Avg Toll Tariff (R$ / Vehicles Equivalents) 1Q13 4Q12 1Q12 Var. 1Q13/4Q12 Var. 1Q13/1Q12 State % 4.7% Autovias % 3.7% Centrovias % 4.6% Intervias % 5.0% Vianorte % 4.6% Federal % 4.5% Planalto Sul % 9.1% Fluminense % 8.0% Fernão Dias % 0.0% Régis Bittencourt % 0.0% Litoral Sul % 16.2% Total % 6.2% The tolls charged by state concessionaires are adjusted annually, on July 1 of each year, by the annual rate of inflation measured by IPCA index. On federal highways the adjustments are implemented each year also 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 Q12 1Q13 Adjusted EBITDA and Margin* R$ MM / % Q12 1Q13 Net Income R$ MM Others Construction Toll 65,8% 65,7% 64,4% 64,1% Q12 1Q13 * Excludes revenue from construction Q12 1Q13 Toll Plaza - Autovias (SP) 20

21 Costs and Expenses R$ thousand Cash Cost Cost of Construction Services Provision for highway Maintenance -183 Depreciation and Amortization Q12 1Q13 Cash costs as % Net Revenue (ex. construction) 34,2% 34,4% 35,6% 35,9% Q12 1Q13 0% 1% 2% 3% 5% 5% Cash Costs 1Q13 19% 13% Third party services Personnel Conservation Inspection fee 25% 27% Costs with granting authority Insurance and Guarantees Management compensation Civil, labor and Tax risks Tax expenses Other 21

22 Indebtedness Gross Debt R$ MM Short term Long term Amortization Schedule R$ MM Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Debt Composition (2012) IPCA + 8% 13.0% TJLP + 2.2% up to 2.6% State 36.5% 23.6% 63.6% CDI + 1.5% Other up to 1.7% BNDES 0.2% Debentures Other 0.4% 63.1% Federal Leverage Ratio and Net Debt R$ MM 1,7 1,7 1,6 1,6 1,8 1,9 1,9 2,0 1,5 1,5 1,5 1,6 1, % 63.6% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Net Debt Net Debt/Adjusted EBITDA - Fixed Concession Charge (last 12 months) 22

23 Autopista Fernão Dias: Improvements on the highway Autopista Fernão Dias: Improvements on the highway INVESTMENTS and construction timetable

24 Investments Total R$ 000 Highway Maintenance Centrovias % Intervias 14% 28% Vianorte 23% Autovias Q12 4Q12 1Q13 Intangible and fixed assets Maintenance Fluminense Régis Bitencourt Intangible / Fixed Assets 20% 26% State 3% 13% 21% 17% Planalto Sul Fernão Dias Litoral Sul 24

25 Investments Main works completed and ongoing projects Repaving Ongoing projects - Federal Grass cutting Before After Fluminense Fernão Dias 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. On Oct 2012 the works at Avenida do Contorno, in Niterói, were started, and will bring important improvements for this stretch of the road, amplifying its capacity. Construction of the second phase of Betim (MG) belt, a 9 km bypass. Connecting the two extremities of the highway will make it possible to create an alternative route for long-distance through traffic. Construction began in October Drainage Before After Régis Construction of the initial and final stretches of the second lane on Serra do Cafezal Highway (BR 116/SP), on 11 km of road near the cities of Juquitiba and Miracatu. In all, 30 km of highway will be expanded. The license for the central stretch was approved in early Jan/2013 by the environmental agency. Signage Before After Litoral Sul In 2012, in addition to the construction of 9.9 kilometers of side streets in the cities of Camburiú, Itapema,Tijucas, Itajaí and Biguaçu, all in Santa Catarina, the completion of two traffic interchanges in the industrial district of São José dos Pinhais, Paraná, an interchange at the junction of Highway Contorno Leste de Curitiba (BR-116/PR) with Highway Estrada da Graciosa (PR-09). Planalto Sul Duplication of 25 km of Highway BR-116, between Curitiba and Mandirituba, which was begun in October/2012. Before After 25

26 OPPORTUNITIES

27 Opportunities Highways Next Federal Highways Antes 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 Toll Tariff: R$ 6.41 (Per Plaza) Revenue: R$ 13.6 billion Estimated Capex: R$ 5.07 billion Term: 25 years Programed Federal Highways 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 Source: ANTT, Federal Government and Internal Studies (Base Date: Jan/12) 27

28 Appendices

29 Capital Markets 00 Stock Performance (Basis 100 Jan-Mar/2013) Composition of Free Float /01/ /01/ /01/ /02/ /02/ /02/ /03/ /03/ /03/2013 R$ (+19.8%) Market Cap R$ 6.53 billions 56,352 (-9.9%) Individuals Institutional Foreign 1.6% 38.9% 59.5% Institutional Brazilian ARTR3 Shares: 344,444,440 Free Float: 40% Stock Liquidity Financial Trading Volume (daily average) R$ MM Analyst Coverage Ágora Banco do Brasil Banco J. Safra Citigroup Coinvalores Credit Suisse Fator Corretora HSBC Itaú JP Morgan Merrill Lynch Morgan Stanley Nau Securities Planner UBS Santander Votorantim 1Q12 2Q12 3Q12 4Q12 1Q13 Number of trades (daily average) Total: 17 institutions Dividends Year Div. / Share Payout 2011 R$ % 2012 R$ % 1Q12 2Q12 3Q12 4Q12 1Q13 29

30 Macroeconomic Scenario GDP (%) E 2014E Interest Rates (%) Inflation (%) ,9 CDI TJLP 25,3 IGP-M IPCA 16,3 17,8 18,1 13,2 13,7 11,2 10,7 11,6 8,7 7,3 8,2 8,3 10,0 11,0 9,8 9,8 6,9 6,3 6,3 6,0 6,0 6,0 5,5 5,5 5, E 2014E 12,4 11,3 9,8 8,7 7,8 7,8 12,5 5,1 5,8 5,8 9,3 3,8 7,6 1,2 5,7 5,9 5,9 6,5 5,8 4,5 5,4 4,5-1,7 4,3 3, E 2014E * Source: IBGE, FGV, BACEN, CETIP, Focus Report and BNDES 30

31 Financing BNDES R$ 000 Debentures R$ 000 Planalto Amount Cost Term Max. % Financed Subcredit A TJLP % a.a. 144 months Subcredit B TJLP % p.a. 138 months Subcredit C TJLP % p.a. 120 months Total % Fernão Amount Cost Term Max. % Financed Subcredit A TJLP % p.a. 144 months Subcredit B TJLP % p.a. 138 months Subcredit C TJLP % p.a. 123 months Total % Régis Amount Cost Term Max. % Financed Subcredit A TJLP % p.a. 144 months Subcredit B TJLP % p.a. 126 months Total % Litoral Amount Cost Term Max. % Financed Subcredit A TJLP % p.a. 144 months Subcredit B TJLP % p.a. 120 months Subcredit C ¹ TJLP 120 months Total % Fluminense Amount Cost Term Max. % Financed Subcredit A TJLP % p.a. 144 months Subcredit B TJLP % p.a. 125 months Subcredit C ¹ TJLP 125 months Total % Autovias Issue Cost Due 1 st Series 285,000 CDI + 1.6% p.a. March-15 2 nd Series 120,000 IPCA + 8% p.a. March-17 2 nd Issue 100,000 CDI + 1.7% p.a. November-15 Total 505,000 National Global Centrovias Issue Cost Due 1 st Series 286,131 CDI + 1.7% p.a. March-15 Aa1.br Ba1 2 nd Series 120,000 IPCA + 8% p.a. March-17 Total 406,131 National Global Intervias Issue Cost Due 1 st Issue 307,947 CDI + 1.5% p.a. March-15 Aa1.br Baa3 2 nd Issue 300,000 CDI + 1.7% p.a. November-15 Total 607,947 National Global Vianorte Issue Cost Due 1 st Series 153,776 CDI + 1.7% p.a. March-15 Aa2.br Ba1 2 nd Series 100,000 IPCA + 8% p.a. March-17 Total 253,776 National Global General Total 1,772,854 Rating Moody's Aa1.br Baa3 Rating Moody's Rating Moody's Rating Moody's General Total 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 years Years elapsed Years pending State Concessions Federal Concessions 33

34 R. Joaquim Floriano, 913 6º andar Itaim Bibi São Paulo SP CEP Tel: Visit our website: Investor Relations