Invepar’s goal is to be an internationally recognized model and leader in the segment of transport infrastructure, with excellence in the provision of services through commitment and innovation, generating results that exceed society’s expectations. To achieve its goal, Invepar intends to adopt the following strategies:
Unique and Diversified Portfolio
Invepar‘s current portfolio is distributed through three segments: toll roads, airports and urban mobility. The concessions are located in the states of São Paulo, Rio de Janeiro, Minas Gerais, Goiás, Bahia, Pernambuco and the Federal District, in addition to a concession in Lima, Peru. Due to the different segments and geographic locations of the concessions, Invepar, its subsidiaries and affiliated companies are subject to the supervision of different granting authorities, on federal, state and municipal levels. As a result, Invepar is not exposed to the risks of just one segment, geographic region or regulatory changes from a single granting authority, which gives the company more stability and resilience. Also, balancing the group’s performance risk, the concessions are in different maturation stages, with both greenfield (projects in the early stages of development) and brownfield (projects in operation or investment phase) assets, as well as, companies in full operational stages.
Premium Assets in Strategically Locations
Invepar’s concessionaires are located in strategic and privileged regions of Brazil, distributed throughout the Southeast, Midwest and Northeast regions. The toll roads are located in important Brazilian products outflow corridors, streamlining production flow and the consequent development of these regions. The urban toll roads are in densely populated areas of major cities, allowing the commuting of the population between their homes and work. In the airports segment, Invepar has the concession of GRU Airport, the busiest airport in Latin America in terms of number of passengers and cargo handling. In the urban mobility segment, due to MetrôRio, Invepar is Brazil’s only end-to-end private subway operator, that is, the only company responsible for the entire management, operation and maintenance of a metropolitan subway system.
Solid Financial Performance, with Strong Growth and Resilience
In the past five years, Invepar‘s operating results grew significantly, supported by a business model based on the three segments in which it operates (toll roads, airports and urban mobility), which is reflected in its financials. In addition, Invepar’s financial leverage is compatible with the maturity of its projects, facilitating fundraising with financial institutions to finance the company’s projects. Also, Invepar’s financial exposure to the project risks is reduced, as the loans taken out and the majority of the guarantees are carried out by the concessionaires, as project finance models. Additionally, due to the different stages of maturity of Invepar’s portfolio and the concessions’ average remaining term of 25 years - above average of the sector’s leading participants - there is a potential for growth of operating cash generation in the coming years.
Strong and Proven Origination Track-Record in large-scale infrastructure projects
With over 10 years of experience, Invepar has demonstrated high capacity in originating and implementing new projects. Its shareholders, the OAS Group (pioneer in the development of construction works in toll roads concessions in Brazil, with over 30 years of experience in the civil construction sector), and the largest private pension funds in the country, namely PREVI, PETROS and FUNCEF, providing the necessary funding for the ongoing projects and support for the development of new projects. As a differential, Invepar acts in structuring Public Interest Expression ("PMI") procedures, a legal instrument through which the private sector develops feasibility studies for public interest projects, demonstrating Invepar’s proactive approach as well as creating a competitive advantage. The concessions ViaRio and CRA were created through PMIs presented by the Company. Invepar believes that there are few competitors in the market capable of structuring these projects, especially in urban mobility. In addition, Invepar has a successful history in bidding for new concessions, having won six of the fourteen bids it participated between 2009 and 2013. Invepar‘s expertise in the implementation of large infrastructure projects is made evident by LAMSA, greenfield project constructed between 1996 and 1998. Today, it is an example of success, being a strong cash-generating asset, whose concession term has already been extended twice by the granting authority. Invepar also uses the know-how gained from the operation of LAMSA in the implementation of ViaRio, a concession whose operational start-up is scheduled for 2016. Despite its preference for greenfiled assets, Invepar also considers opportunities in brownfield projects, maximizing their return. Some examples are MetrôRio, acquired by Invepar in 2009, and GRU Airport, whose operation was entirely taken over by Invepar in February 2013.
Robust Corporate Governance Model
With the goal of being a company with differentiated and high corporate governance standards, Invepar structured a strong model, adopting the best and most recognized practices for a company of its size. Although Invepar’s shares are not traded on any stock exchange, it has been a publicly-held company since 2000, being classified as Category A since CVM Instruction 480 came into effect. The company’s corporate structure includes four committees that assist the Board of Directors - Financial and Investment, Internal Audit, Construction, and Human Resources and Corporate Governance Committees - in addition to the policy of not accumulating the positions of CEO and Chairman of the Board of Directors, fostering independence and professionalism to the management. Another relevant aspect is the fact that Invepar’s shareholders include Brazil’s largest private pension funds, due to which the company’s management has to comply with rigid governance and professionalism controls. Invepar is also a signatory of the Global Compact, an initiative developed by UN’s former Secretary-General, Kofi Annan, created to encourage the international business community to adopt fundamental and internationally accepted values in human rights, labor relations, environment and anti-corruption. Invepar also takes part in OTI’s Annual Global Sustainability Report.
Experienced and Qualified Management Team
Invepar has a highly qualified management team, committed to the long term of the company´s projects and goals, focused on growth, profitability, generation of results and sustainability. Its executive officers are experienced and have extensive knowledge in the infrastructure sector, with managerial skills and a high degree of professionalism, which contributed to Invepar’s successful history and credibility. The key members of Invepar’s management team have more than 20 years of professional experience, with between six to ten years dedicated to the transport infrastructure sector.