DomesticDomestic marketmarket AntónioAntónio dede SousaSousa Portuguese market New motorways New infrastructures
ArrábidaArrábida Bridge Bridge –– Oporto Oporto DouroDouro Concession Concession Portuguese market
Very open & dynamic Grande Porto Long tradition with infrastructure Norte Litoral AENOR PPP’s and tolled roads Douro Litoral Interior Norte Túnel do Marão Porto Beira Already 15 private concessions, Costa da Prata Litoral e Alta over 2700 km Brisal Beira A “new” State owned operator Interior Estradas de Portugal (EP) Atlântico Several ongoing new tenders
National & international players Lisbon Lusoponte
Most concessions with more than Main concession 1 shareholder
Algarve Scutvias Several players in a small market 3 Portuguese market
Private motorway market share Concessions km 2007 Revenues Tolled Network 1 788 Brisa 1 106 Sonae Group Brisal (Brisa) 92 Soares da 3% Atlantico (Brisa) 170 Costa 11% Brisa 47% Douro Litoral (Brisa) 129 AENOR (Ascendi) 176 Cintra 7% Lusoponte (Vinci & Ascendi) 24 Grande Lisboa (Ascendi) 61 Lusoponte 6% Tunel do Marão (MSF/Sacyr) 30 (Vinci/Ascendi) Shadow tolls 918 Brisa Costa da Prata (Ascendi) 105 53% Beira Litoral e Alta (Ascendi) 178 Grande Porto (Ascendi) 55 Beira Interior (Soares da Costa) 178 Ascendi 20% Brisal <1% Norte Litoral (Cintra) 116 (Mota/BES) Atlântico 6% Algarve (Cintra) 130 Interior Norte (Sonae Group) 156 Total 2 706
Brisa is market leader 17 motorways, 1500 km 4 Portuguese market
Brisa positioning
Brisa has already a major position in Portugal
The Portuguese market has an strong weight in Brisa portfolio (85% of employed capital)
But the domestic market still represents a potential for business growth
Not only on motorways business but also in infrastructure diversification, namely the High Speed Rail project and the airport operator (ANA) privatization / New Lisbon Airport (NLA)
Leverage on operational synergies
& market leadership 5 Portuguese market
Priorities for new projects
Bid only if with substantial Greenfield value can be created (with concessions minority stakes)
Brownfield Bid for opportunities in the concessions secondary market
Diversification to other transport infrastructures only in Portugal
Selective approach 6 Portuguese market New motorways New infrastructures
ArrábidaArrábida Bridge Bridge –– Oporto Oporto DouroDouro Concession Concession New motorways
Douro Litoral
Awarded in 2007 (ends in 2034) 3 motorways with a total 129 km of which 76 km are tolled A43 Brisa already started to operate 47 km non tolled (5 years maintenance only) A32
Ongoing A41 construction A43 A41 A32 Extension (km) 8.50 34.0 34.7 Openings 3Q10 2Q11 4Q11 Capex (€M) 60 325 386
On time & on budget 8 New motorways
Douro Litoral
Jan 08 Aug 10 Sep 11 Dec 34
Construction contract Electronic toll O&M contract collection
Conservation Road Road & current Electronics assistance maintenance Project management
Douro already managed under the operator logic 9 New domestic motorways
New road program
The Government announced 7 new concessions with a total of 1 854 km Concessions include maintenance of existing roads, tolled & non tolled stretches Awarding between 2008 and 2009 Brisa in consortium with minority stakes below 50% Partners:
Low traffic intensive, based on availability 10 New domestic motorways
New road program 1
Concession Tolled km Total km Current status
Transmontana 14 174 Awarded to Edifer / Dragados
Douro Interior 0 245 Awarded to Ascendi
Baixo Alentejo 68 334 Brisa not shortlisted AE Centro 185 373 Brisa not shortlisted Baixo Tejo 24 72 Brisa shortlisted Litoral Oeste 19 119 Brisa shortlisted Pinhal Interior 99 537 No decision yet
1Other non tolled projects have come to the market with no interest to Brisa more interesting to construction and maintenance companies
Financial and regulatory issues are a concern 11 New motorways
Short list details Baixo Tejo - 72 km, of which 24 km tolled Urban, - Concession period 30 years Lisbon area, - Brisa in consortia with a 45% stake links to A2 - Capex: €240M - BAFO in 12Nov08 - Expected award in Dec008 Litoral Oeste - 119 km, of which 19 km tolled - Concession period 30 years Links A1 to - Brisa in consortia with a 45% stake Atlântico & Brisal - Capex: €350M - Expected award in 1Q09
Strong synergies with Brisa networks 12 Portuguese market New motorways New infrastructures
ArrábidaArrábida Bridge Bridge –– Oporto Oporto DouroDouro Concession Concession High Speed Rail
The full project
5 PPP separated from train operations Porto-Valença 2 main axes, Lisbon to Badajoz (Spain) €0.8 bn the priority, and Lisbon to Porto-Vigo Porto (Spain) postponed Pombal-Porto €1.7 bn Includes new crossing of the Tagus river
Only launched the Poceirão-Caia tender Lisbon-Pombal - 167 km HSR and 92 km CR €2.1 bn - Period of Concession = 40 years Lisbon-Poceirão Lisbon - Period of Availability = Starts 2014 N/A Elvas/Badajoz Évora Poceirão-Caia €1.7 bn
Bid submitted last October High Speed Rail
Brisa consortia Proposals submitted
- BRISA 15% Construction Maintenance - Soares da Costa 15% Consortia Full per year - Iridium/Dragados 14% - Odebrecht/BPC 12% ELOS €1 323M €11.6M - Construtora Lena 12% Altavia €1 334M €16.7M - Babcock & Brown 8% - Edifer 7% Eiffage €1 760M €13.4M - Zagope 7% - CGD 5% Ferrovial €1 489M €10.8M - Millennium BCP 5%
Brisa consortia is well positioned 15 High Speed Rail
Capex & financing
Investment €1 743M Funds from: - RAVE €137M - Refer €60M - EU €641M
Financing needs €1 000M Equity (10%/90%) €100M Brisa equity (15%) €15M
Low equity & attractive return 16 Airports
The project Privatization of ANA & New Lisbon Airport
Privatized ANA will have the obligation to build the New Lisbon Airport
ANA, itself does not have the financial capability to finance the construction, thus extra financing will be required
The Government maintains the intention to close the current Lisbon Airport (Portela) and to have the New Lisbon Airport (Alcochete) open by 2017
There is still some uncertainty to what regards the tender framework, mainly the concession agreement and the basis of the State financing
Medium term project 17 Airports
The project
Biding process expected to start in the Brisa's consortium first half of 2009, with the first proposal delivered during that same year Lena 5% MSF 5% Brisa Final decision should be taken in the BES 9% 24% first half of 2010
Estimated investment: €3.1 billion Millennium 9% Initial estimated capacity: 25M CGD Today ANA manages the 5 International 9% airports in Portugal Mota-Engil Somague 24% 15%
Strong consortium 18 Wrap-up
Portuguese market
Domestic assets - Still dominant in Brisa´s current portfolio, but - Portugal continues to offer multiple opportunities of value creation
Brisa is targeting different opportunities - Short term & long term - Greenfields & brownfields - Motorways & other transport infrastructures Brisa has a very selective approach - Type of project & Required IRR - Partnerships & Project finance
Focus on high value creation opportunities 19