Invepar Toll Roads 52 Results Management 64 EBITDA and EBITDA Margin
Total Page:16
File Type:pdf, Size:1020Kb
Contents Invepar Achievements Management Performance About GRI 2017 ANNUAL REPORT Contents 03 Message from the CEO 05 Message from the Board Economic and Financial 07 Invepar 20 Achievements in 2017 43 Invepar Management 59 Performance 08 About Invepar 21 Highlights 44 Strategic Controller 60 About Consolidation 11 Corporate Identity 22 Invepar Airports 48 Risk and Compliance Management 61 Operating Revenue 12 Corporate Governance 28 Invepar Urban Mobility 50 People Management 62 Costs and Expenditure 17 Strategy 37 Invepar Toll Roads 52 Results Management 64 EBITDA and EBITDA Margin 18 Awards and Recognition 53 Engineering Management 65 Results Cash and Cash Equivalents 54 Supplies Management 67 and Indebtedness 55 Sustainability Management 68 Main Investments 58 Community Relations 69 About this report 70 GRI Index Contents Invepar Achievements Management Performance About GRI 02 Message from the CEO ergy opportunities afforded by the group as a whole. As a result, we have achieved economies Innovation was part of the strategy for of scale in our service contracts and materials recovering revenue. MetrôRio consoli- procurement, optimized our resources and sig- dated modal integration partnerships nificantly cut R$92 million in costs. and Rio’s Light Rail Transit (VLT) sys- We closed 2017 with an adjusted EBTIDA of R$ 2 billion, in line with the projected budget, tem began Line 2 operations and earned with growth of 9.7% year-on-year. Invepar is still a positive assessment from 92% of users. the biggest private airport operator and urban mobility company in Brazil, and ranks second in Toll Roads. The main positive impacts of this ports segment, our most significant achieve- result were and upturn in the number of pas- ment was the early payment of the 2018 fixed sengers, especially on international flights, and concession for GRU Airport. growth in cargo transit, both at Guarulhos air- This meant that, in economic and financial port (GRU), as well as increased revenues for terms, São Paulo International Airport became group companies. fully operational with no further investment Innovation was part of our strategy to recov- from shareholders, and can now focus its en- er revenue, above all in the urban mobility seg- ergies on generating revenue and delivering ment. MetrôRio consolidated modal integration on our commitments laid down in the conces- Erik Breyer – Invepar CEO partnerships to promote facilities and improve sion contract. convenience for the traveler, with ticket integra- We have also moved forward with our initia- In 2017, after a resilient stand against the un- tion for vans, buses, BRT and taxis. Rio’s Light tives based on the Company’s ethical values precedented economic and financial crisis in Rail Transit (VLT) system began Line 2 opera- and principles, completing a number of proj- Brazil over the last three years, with severe con- tions and earned a positive assessment from ects relating to ABC due diligence and forensic sequences for the infrastructure sector, Inve- 92% of users (Datafolha survey). reviews, with no indication of illicit conduct or par opted to adopt an introspective approach In terms of Toll Roads, process review and illegality. We launched our Integrity Policy doc- and embark on a reorganization initiative. Our structural reorganization resulted in the de- ument affirming our commitment to addition- solution was to combine our strengths and re- velopment of new tools to monitor indicators, al guidelines to our Code of Ethics and Conduct, design our processes, review the Company’s and we standardized activities to cut costs and and these efforts have seen us through with organizational structure and capture the syn- boost quality of service and planning. In the Air- firmness, solidity and transparency. Contents Invepar Achievements Management Performance About GRI Message from the CEO 03 The set of initiatives implemented in 2017 and sectors of the economy, and a significant drop in Peru. In Mobility, there was also a significant their economic knock-on effects boosted our in demand, these results show that we are on year-on-year drop of 15.7% in the number of 2017 result by 180.3% year-on-year. The group the right track. passengers carried (based on comparables). recorded a loss of R$ 334 million compared to In the Toll Roads segment, the number of The advances made by the Invepar group were R$ 960.8 million the previous year. Despite the Equivalent Paying Vehicles (EPVs) year-on-year wholly attributable to the determination and lack of investment during 2017, impacting all fell by 18.7%, mainly due to the sale of LAMSAC, team integration of the parent company and other companies in the group, focused on im- Stretch of CART toll road in the interior of São Paulo proving processes and seeking improved results. These factors were decisive in maintaining the Company’s competitive edge and market at- tractiveness as a good solution to infrastruc- ture development in Brazil. Our conviction was further strengthened by a firm investment pro- posal from Mubadala to our shareholders Previ, Petros and Funcef for the acquisition of up to 50.1% of the Company’s shares. Details of this deal were given in press releases published in the second half of 2017. We know that we will also face daunting chal- lenges in 2018 and the consolidation of our new results management model is one of the prior- ities that will prepare us to take advantage of future opportunities as the Brazilian econo- my picks up. We therefore believe that we will maintain the sustainability of our current busi- ness and any new business that may come our way. We will continue as one of Brazil’s lead- ing infrastructure platforms. We hope that you will find this 2017 Annual Report informative. Erik Breyer Contents Invepar Achievements Management Performance About GRI Message from the CEO 04 Message from the Board In the face of yet another challenging year in the infrastructure sector – impacting economic, fi- nancial, regulatory and public relations aspects – in 2017 Invepar responded with extreme dili- gence, cost discipline, teamwork and transpar- ency, meeting our targets in a year that saw a steep drop in demand. Invepar also reaped the benefits of a new man- agement model, initiated two years ago, that culminated in 2017 with process centralization and procedure unification, reducing exposure to risks and generating significant quality out- comes, such as the MetrôRio customer satis- faction survey with 92% user approval, as well as the Secretariat of Civil Aviation (SAC) survey at GRU Airport revealing it to be one of the best in the country during the fourth quarter of 2017 for airports handling over 15 million passen- gers a year. The group also succeeded in cut- ting costs through initiatives, including a 32% cut in management posts. In addition to reviewing all its processes, the company undertook to expand, both in-house and externally, its transparency mechanisms and re- sponded rapidly and skillfully to the Board’s re- quests, taking further steps to improve integrity. View from the Terminal 3 boarding pier Contents Invepar Achievements Management Performance About GRI Message from the Board 05 The Company reinforced its compliance pro- cesses, launched the new Integrity Program and completed a robust auditing plan, including ABC due diligence at all associate companies, forensic audits and a more stringent internal auditing plan. All this work carried out mainly in-house in re- cent years, continued throughout 2017 and en- abled us to capture Invepar corporate synergies, sharing best practices, adding value to our busi- ness and helping make the Company an attrac- tive option in the marketplace. The results of auditing work and process review significantly improved procedures and cleared up any doubts and queries. It is important to high- light that shareholders, board members and man- agers are united in stressing the breadth and depth of this work. The company’s transparent approach, as well as unrestricted and open di- alog with stakeholders, has earned Invepar re- spect and trust, strengthening our conviction that integrity programs should be structured and treated as a priority in public utility companies. As part of a sector that is extremely dependent on the national macroeconomic context, Invepar concluded 2017 with positive results, and we are now in a more stable, tranquil and robust posi- tion to take on the challenges of managing Bra- zil’s transport infrastructure. And when the time comes, the Company will be ready to return to growth and help reduce bottlenecks in the coun- try’s transit infrastructure. Henrique Freire Operation of MetrôRio in the state capital Contents Invepar Achievements Management Performance About GRI Message from the Board 06 Invepar 08 About Invepar 11 Corporate Identity 12 Corporate Governance 17 Strategy 18 Awards and Recognition Contents Invepar Achievements Management Performance About GRI 07 About Invepar As one of the biggest private urban mobility and transit infrastructure management companies in Latin America, Invepar now holds 11 conces- sions through its subsidiary companies and joint ventures in the Toll Roads, Airports and Urban Mobility segments. In the Airports segment, Invepar controls the concession-holder of São Paulo International Airport (GRU), the biggest in South America in terms of passengers and freight. In the Urban Mobility segment, Invepar holds the MetrôRio and Light Rail (VLT Carioca) con- cessions in the city of Rio de Janeiro, and also controls MetrôBarra S.A., responsible for the procurement and provision of rolling stock and systems used on metro Line 4 in the state of Rio de Janeiro, which came into service in 2016. At present, Invepar holds eight concessions in the Toll Roads segment, with a total of 2,337 km including main and nearby corridors and access roads. In Rio de Janeiro, Invepar controls LAMSA – Linha Amarela S.A., ViaRio and CRT – Conces- sionária Rio-Teresópolis, in São Paulo, CART – Concessionária Auto Raposo Tavares, and in Minas Gerais, the Federal District and Goiás, Via040.