1H2015 results · Financial Results 9 1H2015 results Despite slightly higher gross debt, BCR...

1H2015 results

July 29th, 2015

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BRISA Concessão Rodoviária, S.A.

Head-Office: Quinta da Torre da Aguilha, Edifício BRISA, São Domingos de Rana

Share capital: EUR 75 000 000

Registered in the Commerce Registry Office of Cascais under register and corporate tax number 502790024

Highlights

1H2015 results

Traffic Evolution

Operating Performance

Capex

Debt Structure

Liquidity Position

Guidance

Wrap-up

Annex 1: Shareholder Structure

Annex 2: P&L and B/S

4

Highlights

1

1H2015 results

7th consecutive quarter with YoY traffic

growth 2 Strong operating performance

3 Comfortable liquidity position 4 Guidance revised upwards

147.0

162.7 70.6%

72.8%

68.50%

69.50%

70.50%

71.50%

72.50%

135

145

155

165

1H14 1H15

EBITDA

EBITDAMargin

10.7%

2.2 p.p.

2.4% 1.2%

6.5% 5.2% 4.6%

7.5% 6.5%

0.00%

2.00%

4.00%

6.00%

8.00%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

Traffic

growth

(ADT, YoY)

LM transaction concluded in April allows a smoother

debt amortization profile and a lower cost of debt

Cash position of € 265 million

New € 75 million credit line, increasing total

committed amount to €325 million, with bulk of it

maturing after YE16

Solid liquidity position, covering MLT redemptions

beyond YE16

Toll revenues

Opex

EBITDA - CAPEX

Previous Guidance (Dec. 14): > 3%

New Guidance (Jun. 15): > 5%

Previous Guidance (Dec. 14): > € 300 million

New Guidance (Jun. 15): > € 310 million

Guidance maintained: flat

Overview

1H2015 results

Traffic Evolution


Capex

Debt Structure

Liquidity Position

Guidance

Wrap-up



1H traffic performance reinforces recovery trend

1st H 2015 ADT per motorway

Quarterly ADT (Average Daily Traffic) / VKM growth

1H2015

results

A1 A2 A3 A4 A5 A6 A9 A10 A12 A13 A14 TOTAL

ADT 26 910 11 146 16 054 25 001 61 627 4 156 16 103 5 134 16 993 2 877 3 728 15 757

% change 6.0% 8.5% 9.2% 8.0% 5.5% 7.8% 5.7% 5.4% 7.2% 8.4% 10.6% 7.0%

3Q 14

4Q 14

1Q 15

2Q 15

+5.2%

+6.5%

+7.5%

+4.6%

VKM growth

2H 14

+5.0%

1H 15

+7.0%

6

Quarterly (YoY) Semi-annual (YoY)

2Q

17 128

16 082

1Q

14 370

13 364

4Q

15 350

14 669

3Q

20 061

19 062

2Q

16 082

15 101

2Q14 to 2Q15

2Q13 to 2Q14

Traffic increased 7.0% in 1H2015, which compares to an increase of 4.0% in the same period of

2014

Toll revenue increased 7.1% in 1H2015, above the already strong increase of 4.1% in the same

period of the previous year

Performance significantly above guidance

7

Traffic & Toll Revenue (YoY)

Traffic

Revenue

Strong performance of toll revenues, backed by organic

traffic growth

1H2015

results

1Q14 1H14 9M14 YE14 1Q15 1H15

AADT (organic) 4.0% 3.7% 4.2% 4.2% 6.1% 6.9%

Calendar effect -2.8% 0.3% 0.3% 0.3% 1.3% 0.1%

Others 0.0% 0.0% 0.0% 0.0% 0.1% 0.0%

Like-for-like 1.2% 4.0% 4.5% 4.5% 7.5% 7.0%

Mix effect 0.5% 0.4% 0.4% 0.4% -0.3% -0.3%

Tariff increase 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Others -0.4% -0.3% 0.2% 0.5% 0.7% 0.4%

Total 1.3% 4.1% 5.1% 5.5% 8.0% 7.1%

Operating results (EBITDA)

EBITDA increased 10.7% to €162.7 million 8

Strong increase in revenues

together with a disciplined cost

approach led to a 2.2 p.p. YoY

increase in EBITDA margin, which is

already closer to 2011 levels

Operating income increased 7.3%

Costs remain controlled, with Opex slightly down

despite significant increase in revenues

1H2015

results

Eur mn 1H14 1H15 YoY

Operating income 208.3 223.5 7.3%

Toll revenues 202.6 217.0 7.1%

Service areas 3.6 3.7 2.3%

Other income 2.0 2.8 37.4%

Operating expenses -61.3 -60.8 -0.7%

Supplies and services -60.0 -59.5 -0.8%

Personnel costs -0.8 -0.8 -1.5%

Other expenses -0.6 -0.6 5.2%

EBITDA 147.0 162.7 10.7%

EBITDA Margin 70.6% 72.8% 2.2pp

177

150 139

147

163

73.3%

70.4% 69.6%

70.6%

72.8%

65.00%

67.00%

69.00%

71.00%

73.00%

115

125

135

145

155

165

175

185

1H11 1H12 1H13 1H14 1H15

EBITDA EBITDA Margin

EBITDA and EBITDA Margin

10.7%

2.2 p.p.

Financial Results

9

1H2015

results

Despite slightly higher gross debt, BCR benefits from the positive net effect between recent

debt additions (new € 300 million bonds issued in both 2014 and 2015) and recent debt

redemptions (€ 225 million in Dec. 14; € 63.5 million bond in Mar 15; € 192.7 million in Apr. 15)

lower coupons, impacting positively ‘Interest expenses’

lower placement costs, impacting positively ‘Other financial expenses’


Net financial results -58.4 -51.7 11.5%

Financial income 1.9 1.1 -44.3%

Financial expenses 60.3 52.7 -12.5%

Interest expenses 48.1 41.6 -13.5%

IFRIC12 3.8 4.4 17.6%

Other financial expenses 8.4 6.7 -20.3%

Financial expenses on a downward trend

Net financial results improved 11.5% YoY, reflecting better market conditions

-51 -59 -65 -58 -52

-100

-80

-60

-40

-20

014 15

Financial Results

11.5%

1H12 1H13 1H14 1H15 1H11

Net Profit

10

1H2015

results


EBITDA 147.0 162.7 10.7%


Depreciation & prov. 78.3 82.0 4.7%

EBIT 68.7 80.7 17.5%

EBIT Margin 33.0% 36.1% 3.1pp


Profit before tax 10.3 29.0 180.9%

Income tax -2.1 -8.1 -

Net profit 8.2 20.9 153.0%

Profitability significantly increased

Higher revenues, flat opex and better financials significantly

improved bottom line

Net profit reached € 20.9 million (+153% YoY),

backed by toll revenue increase, controlled

costs and better financial results

Net Profit

32

9

-3

8

21

-10

-5

0

5

10

15

20

25

30

35

40

1H11 1H12 1H13 1H14 1H15

153%

Cash-flow generation (EBITDA – CAPEX)

11

Strong cash-flow generation, with the increase in EBITDA more

than compensating higher Capex

Capex is mainly related to pavement works in A1, A2 and A3

Capex is expected to increase in the 2H2015, driven by major repairs

1H2015

results


EBITDA 147.0 162.7 10.7%


Capex 7.5 22.6 201.0%

New junctions 1.0 0.0 -96%

Widening works 1.7 2.9 75%

Major repairs¹ 1.4 15.2 1 019%

Other (equipment, supervision, etc) 3.5 4.4 26%

EBITDA - Capex 139.5 140.1 0.4%

1 Under the framework of IFRIC12, major repairs are provision costs, not CAPEX

12

Financial management and MLT debt amortization profile

1H2015

results

LM transaction concluded in April allows for a smoother debt

amortization profile

0

100

200

300

400

500

600

700

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

million Eur

EIB

Bonds

Amount

Tendered New 10y Bond

@ 1.875% Liability Management

BCR continues to actively manage its MLT debt maturity profile

In April, a liability management transaction was successfully concluded:

Issuance of a new 10y € 300 million bond, with a coupon of 1.875% (the lowest ever for a Portuguese

corporate). Bond was placed mainly with international institutional investors

€ 192.7 million tendered on the € 600 million, 4.5% coupon, Dec. 2016 bond (outstanding amount at

€ 407.3 million)

13

1H2015

results

Eur mn YE12 YE13 YE14 YoY 1H15 YtD

Bonds (EMTN) 1 788 1 408 1 483 +75 1 527 +44

EIB 702 663 624 -39 604 -19

Bank facilities 36 82 52 -30 75 +23

Total (gross debt) 2 526 2 153 2 160 +6 2 206 +46

Cash 310 139 339 +200 265 -74

Net debt 2 216 2 014 1 820 -194 1 941 +121

Considerable net debt reduction over the recent years (-12% or

€ 275 million since YE12)

Debt Structure (nominal)

69%

27%

4%

Bonds EIB Bank Facilities

Debt Breakdown

Gross debt totalled € 2 206 million in Jun.15, of which 69% are Bonds issued under the EMTN

programme. The € 46 million YtD increase in gross debt is mainly explained by:

LM transaction concluded in April (€ 300 million @ 1.875% issued and € 192.7 million @ 4.5% tendered)

A private placement that reached its maturity (€ 63.5 million @ 6.4% redeemed)

Cash position in Jun. 15 at € 265 million (down € 74 million YtD), with the first distribution made

since inception (in the amount of € 184 million) partially compensated by cash-flow generation

14

1H2015

results

Liquidity position

BCR has plenty of funds and facilities in place

to meet its forthcoming debt maturities:

Strong liquidity position, covering MLT redemptions beyond YE16

402.7

58.5

461.2

100

200

300

400

500

EMTN EIB Total

MLT redemptions until YE16 fully

covered

€ 265 million in cash

New € 75 million credit line signed

during 1H15, increasing total amount

in committed credit lines to € 325

million, with bulk of it maturing after

YE16. Drawings remain low, leaving

additional available liquidity at high

levels (€ 250 million undrawn)

Strong free cash flow generation

Less concentrated debt maturities

1

2

3

4

7.01 6.88 6.44 5.98 5.38 5.49 5

5.25

5.5

5.75

6

6.25

6.5

6.75

7

7.25

15

Net debt / EBITDA1

Trigger/Lock-up level:

>6.5 up to 2H2013

>6.25 up to 2H2014

>6.00 in 1H2015

6.88

5.98

2H2012 1H2013 2H2013 1H2014

Net debt reduction coupled with increasing EBITDA have fostered a substantial Net Debt /

EBITDA decrease over the recent years

Despite the distribution of € 184 million made in April, headroom to lock-up in Jun.15

remained at a significant level

1 Inputs for this ratio may slightly differ from reported figures due to the adjustments made in order to reflect the CTA ratio definitions

1H2015

results

Significant headroom to

lock-up

All ratios in compliance, with significant headroom

2H2014 1H2015

Overview

1H2015 results

Traffic Evolution


Capex

Debt Structure

Liquidity Position

Guidance

Wrap-up



17 Targets revised upwards

Guidance

YE2015

Previous Guidance: > 3%

New Guidance: > 5%

Previous Guidance: flat

New Guidance: flat (maintained)

Previous Guidance: > € 300 million

New Guidance: > € 310 million

Toll revenues

growth

Opex

performance

EBITDA - CAPEX

Overview

1H2015 results

Traffic Evolution


Capex

Debt Structure

Liquidity Position

Guidance

Wrap-up



19

Wrap-up

Wrap-up

7.0% traffic increase, driven by a robust organic growth

7th consecutive quarter of positive traffic growth

Traffic growth rates above guidance

Traffic

consistently

increasing

Significantly higher revenues and flattish operating costs allowed EBITDA to

increase 10.7% YoY, reaching € 162.7 million

EBITDA margin up 2.2 p.p. to 72.8%

EBITDA – CAPEX of € 140.1 million

Strong operating

performance and

cash-flow

generation

LM transaction concluded in April (new 10Y € 300 million bond issued and

€ 192.7 million of Dec. 16 bond tendered) allows for a smoother debt

amortization profile and a lower cost of debt

New € 75 million credit line signed during 1H15, increasing total committed

amount to € 325 million, leaving additional available liquidity at high levels

(€ 250 million undrawn)

Cash position of € 265 million

Solid liquidity position, covering MLT redemptions beyond YE16

Smooth maturity

profile and solid

liquidity position

Targets for traffic growth and for EBITDA – CAPEX were revised upwards Revised

guidance

Overview

1H2015 results

Traffic Evolution


Capex

Debt Structure

Liquidity Position

Guidance

Wrap-up



Shareholder Structure

21

Annex 1

Current Shareholder Structure

Brisa – Concessão

Rodoviária, S.A. (BCR)

Brisa – Concessão Rodoviária, SGPS, S.A.

Brisa Auto Estradas de

Portugal, S.A.

70%

Other

Investors

30%

100%

In June 2015, Brisa – Auto-Estradas de Portugal, S.A. (“Brisa”)

which, indirectly, held the entirety of the share capital and

voting rights of BCR, informed BCR that within the scope of

the sale and purchase agreements over shares entered into, it

agreed the disposal to other investors of 30% of the share

capital and voting rights of Brisa – Concessão Rodoviária, SGPS,

S.A. (“BCR SGPS”), which, directly, holds, as only

shareholding, the entirety of the share capital of BCR.

This disposal will not entail changes to the operational

management and financial strategy of BCR, not affecting in

any way the ring-fencing structure created in due course for

the protection of the investors.

Following this transaction, Brisa will continue to hold the

control over BCR SGPS, retaining a 70% holding in the

respective share capital and voting rights.

No operational changes in BCR. Ring-fencing structure unaffected

P&L

22

Annex 2


Operating income 208.3 223.5 7.3%

Operating expenses 61.3 60.8 -0.7%

EBITDA 147.0 162.7 10.7%


Depreciation & prov. 78.3 82.0 4.7%

EBIT 68.7 80.7 17.5%

EBIT Margin 33.0% 36.1% 3.1pp


Profit before tax 10.3 29.0 180.9%

Income tax -2.1 -8.1 -

Net profit 8.2 20.9 153.0%

Toll revenue increase comfortably above guidance

Opex change in line with guidance despite significant increase in revenues

Financials reflect better market conditions

EBITDA margin closer to 2011 levels

All resulting in significant increase of profitability

Higher revenues, flat opex and better financials significantly

improved bottom line

Balance Sheet

23 Solid balance sheet

Current assets include € 265 million in cash

Impact of € 184 million distribution made in April

Eur mn YE2014 1H15 YtD

Assets 3 155 3 010 -4%

Non-current 2 725 2 663 -2%

Current 378 295 -21%

Deferred tax 52 52 0%

Equity 727 566 -22%

Liabilities 2 428 2 444 1%

M/Long-term financial debt 1 956 2 033 4%

Short-term financial debt 182 126 -31%

Other 290 285 -2%

Annex 2

1H2015 results · Financial Results 9 1H2015 results Despite slightly higher gross debt, BCR...

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