Annual & Sustainability Report 2017 slide image

Annual & Sustainability Report 2017

MESSAGES ABOUT THE REPORT THE CCR GROUP STRATEGY AND OPPORTUNITIES BUSINESS MODEL SERVICES TOLL ROADS URBAN AIRPORTS OUTLOOK MOBILITY Outlook The recovery of Brazil's economic growth may occur more rapidly in 2018, according to productivity and population employability indicators at the end of last year, but there will still be major challenges to the development of new business and infrastructure investments in the country. The political scenario is still uncertain and federal and state government elections, scheduled for the last quarter of the period, will come first in the institutional debate, sharing the spotlight with the need to improve the conditions of national assets. Besides focusing on excellence in the management of its portfolio, CCR Group will also heed the opportunities that will arise in Brazil and abroad, either for the acquisition of new concessions or for secondary market projects. Moreover, the company is prepared to further the discussion on the importance of infrastructure investments at the national level. Some initiatives in this area have already started in 2017. Last September CCR Group was one of the participants of the tenth edition of the Brazilian Congress of Toll Roads and Concessions, held in Brasilia. The event's panels addressed matters such as effectiveness of infrastructure planning, funding of toll road concession programs, the function of the control bodies, the role of the Judiciary in the development of jurisprudence involving the sector, and the work of Brazilian Congress and control bodies in relation to the topic. The most recent edition of the global competitiveness report, released by the World Economic Forum, puts Brazil in 80th place on a list with 137 nations. In this survey, infrastructure is the second most important pillar for leveraging a country's ability to compete in the global market, only ranking below the solidity of institutions. Likewise, a study by the National Transportation Confederation shows that, in 2016 alone, private investment in Brazilian highways was more than double the sum invested by the federal government. In its current business operations, CCR Group will continue to look out for existing opportunities in the concessions it already operates, maintaining capital discipline which distinguishes its business management. In the scope of São Paulo state toll roads, it will follow the evolution of the agreement riders signed in 2006 to ensure the economic and financial balance of agreements managed by CCR SPVias and Renovias. Another challenge is the maintenance of investments by CCR MSVia, which partially resumed the twinning of BR-163, in the state of Mato Grosso do Sul, last year. Approximately R$ 143 million will be invested in 12.5 kilometers of twinning and 84 kilometers of pavement restoration on various segments of the road. The restoration of balance in the agreement for this concession is due to a combination of delays in the issuance of the Environmental License (resulting in only partial release of segments for twinning roadworks) with the change of bases for funding by Banco Nacional de Desenvolvimento Econômico e Social (Brazilian National Bank for Economic and Social Development - BNDES) and Caixa Econômica Federal (Federal Savings and Loans Bank). In the international scenario, CCR Group is structured to identify opportunities for business expansion in South American nations and in the United States, where there is a growing demand for investments in the airport sector. The organizational restructuring completed in 2017, a result of the Repensar project, and its financial solidity place CCR Group on a favorable footing for a new cycle of growth. The new business areas, which are more dedicated and closer to the units, are poised to assess risks and opportunities, identifying new avenues for company-wide qualified and sustainable growth. CCR Group also supported the "Em Movimento" (In Movement) project, a series of six films showing how transport, sanitation, urban mobility and other infrastructure contribute to economic growth and have a positive impact on society. With this initiative, the company seeks to mobilize society in response to the discussion about the growth of private sector participation in national development. Click here to watch the films of the "Em Movimento" series. 42 Annual & Sustainability Report 2017 • CCR Group H 02/1030 CCR GRUPOCCK.COM.BR 000
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