4Q16 and 2016 Earnings Release

Transcription

1 4Q16 and 2016 Earnings Release Triunfo reports Adjusted Net Revenue of R$1.5 billion and Adjusted EBITDA of R$854.1 million in 2016 BM&FBovespa: TPIS3 ri.triunfo.com IR Department: Sandro Antônio de Lima Marcos Pereira Jenifer Nicolini Rua Olimpíadas, º andar São Paulo BR Phone: ri@triunfo.com On 12/31/2016: Stock Price: R$3.17 Total Shares: 176,000,000 Free Float Shares: 70,612,774 Free Float³: 25.4% Conference Call in Portuguese with simultaneous translation into English Wednesday, March 29, :00 p.m. (Brasília) / 11:00 a.m. (US ET) Dial-in: +55 (11) (Brazil) +1 (786) (Other countries) Code: Triunfo Replay: +55 (11) Code for Portuguese: # Code for English: # São Paulo, March 28, 2017 Triunfo Participações e Investimentos S.A., one of Brazil's leading infrastructure companies, with operations in the toll road, airport, port administration and power generation segments, announces its results for the fourth quarter of 2016 (4Q16). The financial information in this earnings release is consolidated in proportion to Triunfo s interest in each business. Results of the period do not change because of the consolidation method. The net revenue figures reported herein exclude construction revenue (adjusted net revenue) 1, except where stated otherwise. Results are in thousands of Brazilian real and comparisons are with the same period last year, except where stated otherwise. Results are compared with the Pro Forma Result² of 4Q15 and 2015, which excludes the result of energy assets Rio Verde and Rio Canoas due to the sale of the assets in November Q16 and 2016 Highlights Adjusted Net Revenue reached R$392.5 million on 4Q16 and R$1.5 billion on 12M16, growth of 13.7% in the quarter and 5.6% in the year, mainly due to the performance of the port during the period and the increase in toll revenue. Adjusted EBITDA totaled R$222.7 million in the quarter and R$854.1 million in the year. Port Segment: Portonave reported net revenue growth of 12.1% in 4Q16 and 12.6% in the year, driven by the growth in TEU handling revenue, resulting from the significant growth in volume handled by the terminal (+25.4% in 4Q16 and +34.0% in the year). In August 2016, Portonave reached the mark of 5 million TEUs handled since its operational startup. The renewal of the lines acquired by the terminal in 2015 underscore Portonave's differentials in terms of productivity and quality of services. Toll Roads Segment: gross revenue from tolls grew 3.7% in the quarter and 27.2% in the year, mainly due to toll adjustments with real gains in the period and, as an effect of the accrued result, the impact of the start of toll collection at Concebra. The segment s results were affected by the reduction in construction margin in contractual amendments relating to toll roads; excluding this effect, Adjusted Net Revenue increased 0.5% in the quarter and 27.0% in the year. Airport Segment: commercial revenue grew 22.3% and 24.6%, respectively, in 4Q16 and 2016, due to the increase in revenue from services and facilities, parking lot and business establishments, all of which were boosted by the transfer of all the flights to the new passenger terminal in April Energy Segment: gross revenue from the energy segment stood at R$17.1 million in 4Q16 and R$63.9 million in Adjusted net revenue is arrived at by deducting revenue from the construction of concession assets from total net revenue. ² 4Q15 and 2015 Pro Forma Result: excludes the result from energy assets Rio Verde and Rio Canoas. On November 26, 2015, the Company concluded the sale to CTG Brasil of its entire interest in these subsidiaries. ³ Excludes shareholding position of BNDESPAR (14.8%). 1

2 Message from Management Triunfo posted Adjusted Net Revenue of R$1.5 billion and Adjusted EBITDA of R$854.1 million in In order to mitigate the effects of a still challenging economic scenario, the Company maintained its focus on executing its strategy. For this, the Company s efforts were focused on expanding synergies among the projects and on taking measures that underline Triunfo s commitment to improving its capital structure through diverse alternatives to lengthen its debt profile, especially at the holding company. During 2016, we worked hard to minimize the impact of economic slowdown on business performance. Portonave registered 34% growth in container handling compared to the previous year and reached the mark of 5 million TEUs handled since operational startup. It also holds the South American productivity record, with moves per hour and an average of 115 moves per hour in In the toll roads segment, the highlight was the 27.2% growth in gross revenue from tolls, mainly due to toll adjustments with real gains in the period and the toll collection at Concebra. Excluding the effect of margin in contractual amendments in the periods, which decreased due to the conclusion of works at Concepa in November 2015 and the suspension of works at Concer, Adjusted Net Revenue and Adjusted EBITDA from the segment grew 27.0% and 19.3%, respectively. In 2016, we rolled out a plan to improve operating efficiency and reduce costs at the concessionaries, which enabled us to capture greater synergies among the projects and optimize resources. At Viracopos International Airport, 115,300 aircraft carrying 9.3 million passengers and 169,300 tons of cargo passed through the airport in The transfer of all the flights to the new passenger terminal in April 2016 improved its commercial revenue, with growth of over 3.2% in the quarter and the year. In 2017, Triunfo s efforts remain focused on continuing the plan to improve its capital structure. For this, the Company, with the support of external legal and financial advisors, decided to divest certain assets and use the proceeds to reduce its debt and that of its subsidiaries. The Company will divest its ownership interest in Aeroportos Brasil, Portonave, Tijoá and CSE. We thank everyone who contributed to the continuation of our history in In 2017, Triunfo Participações e Investimentos completes 10 years as a listed company and it remains focused on expanding synergies among our projects in order to share solutions, reduce costs and optimize resources through a strategy of portfolio consolidation and commitment to maximizing value creation for shareholders. Carlo Alberto Bottarelli Chief Executive Officer Sandro Antônio de Lima - Chief Financial and Investor Relations Officer 2

3 Table of Contents Shareholding Structure on December 31, Highlights and Events Subsequent to the Reporting Period... 4 Comments on Pro Forma Financial Performance... 5 Consolidated Result... 6 Toll Roads Segment Port Segment Energy Segment Airport Segment Debt Investments About Triunfo Disclaimer Annexes Affiliated companies

4 Shareholding Structure on December 31, 2016 Highlights and Events Subsequent to the Reporting Period Plan to improve the capital structure: Triunfo prepared a plan to improve its capital structure and, together with external legal and financial advisors, is evaluating the possibility of divesting certain assets and using the proceeds to reduce its debt and that of its subsidiaries. The Company will keep the market informed on the progress of its strategy. The Company is evaluating opportunities to divest its ownership interest in Aeroportos Brasil, Portonave, Tijoá/CSE. Portonave reaches the mark of 5 million TEUs handled in 2016: Portonave surpassed the mark of 5 million twentyfoot equivalent units (TEUs) handled. The number refers to the volume handled since the Terminal s operational startup in October The container that reached this number was handled in August 1. In just over eight years, more than 4,500 ships have berthed at the Terminal. New issue of debentures: On November 23, 2016, the Company concluded the First Issue of Convertible Debentures of its subsidiary Vênus Participações e Investimentos S.A. for private placement with Trophy Fundo de Investimento em Participações Multiestratégia. The principal amount is approximately R$647.3 million, maturing in 50 months starting from November 23, Interest payment and amortization will be in the 50 th month and early settlement is possible at any time. The collateral given for the operation is the Company s assets. Notice for payment of bridge loans obtained by Concer and Concebra from BNDES: Triunfo, Concer and Concebra became aware of lawsuits filed by the BNDES demanding payment, in a single installment, of the bridge loans granted to the subsidiaries. As soon as it receives the notification, the Company will evaluate the appropriateness of taking further measures in addition to the lawsuits it has already filed. In addition, Triunfo was informed in January 2017 by Banco do Brasil and BDMG of the execution of bank guarantees for the bridge loan obtained by Concebra from BNDES. The Company will keep the market duly informed of further developments. 4

5 Extraordinary review of rebalancing of Viracopos agreement: Aeroportos Brasil Viracopos S.A. was notified by the National Civil Aviation Agency (ANAC) of the analysis of the economic and financial rebalancing of the agreement due to the change in the airport tariff for imported cargo moved to other bonded facilities in the primary zone (cargo in transit TECATECA and international transit). The 1 st Extraordinary Review was approved in the amount of R$209.9 million and will be made through a revision of the fixed contribution payable by the concessionaire. The Company believes that the amount for rebalancing the agreement relating to revenue from cargo on account of changes in the bid notice is higher than its calculations and should challenge the decision. Extraordinary toll adjustment Concebra: The approval for the 14.17% adjustment to the average toll at booths on the highway stretch managed by Concebra, caused by the impact of Law 13,013/2015 (Truck Driver s Law) in effect from April 17, 2015, was published in the Federal Register on December 16, 2016 (Section 1, Page 269). The new toll comes into effect at the toll booths at the next ordinary toll review on June 27, Suspension of distribution of dividends: at the Extraordinary Shareholders Meeting of the Company held on December 8, 2016, the shareholders approved, by majority vote, the suspension of the payment of dividends declared at the Annual Shareholders Meeting held on April 29, 2016 in the amount of R$40 million, in view of the significant change in the Company's financial situation after said announcement. The dividends mentioned above will be adjusted as from January 1, 2017 until their effective payment date by the variation in the Interbank Rate (CDI) plus four percent (4%) per annum as remuneration for the postponement of said payment. Comments on Pro Forma Financial Performance The information in this section is presented in proportion to Triunfo s interest in each investee, except where stated otherwise. Note that net income from the period does not change because of the consolidation method. Results are compared with 4Q15 and 2015 Pro forma Results, which exclude the results of the energy assets Rio Verde and Rio Canoas. 5

6 Consolidated Result 4Q15 Main Indicators (in R$ thousands) 4Q16 4Q15 D D 3Q16 Pro Forma* Adjusted Net Revenue 392, , % 345, % Toll Roads 286, , % 248, % Energy (Tijoá, Rio Verde and Rio Canoas) 12,822 44, % 12, % Portonave 63,858 56, % 56, % Aeroportos Brasil Viracopos 29,271 27, % 27, % Adjusted EBITDA 222, , % 397, % Toll Roads 176, , % 135, % Energy (Tijoá, Rio Verde and Rio Canoas) 2,447 19, % 1, % Portonave 35,926 45, % 45, % Aeroportos Brasil Viracopos 11,467 13, % 13, % Holding and Other (3,782) 202, % 201, % Net Income (Loss) (194,111) 59, % 58,444 n/d Toll Roads (142,819) (37,668) n/d (37,668) n/d Energy (Tijoá, Rio Verde and Rio Canoas) 2,373 1, % (140) n/d Portonave 9,043 15, % 15, % Aeroportos Brasil Viracopos (12,606) 2,238 n/d 2,238 n/d Holding and Other (50,102) 78, % 78, % Main Indicators (in R$ thousands) 12M16 12M15 D 12M15 Pro forma* Adjusted Net Revenue 1,476,821 1,622, % 1,398, % Toll Roads 1,099,607 1,038, % 1,038, % Energy (Tijoá, Rio Verde and Rio Canoas) 48, , % 58, % Portonave 223, , % 198, % Aeroportos Brasil Viracopos 105, , % 102, % Adjusted EBITDA 854,143 1,219, % 1,108, % Toll Roads 672, , % 735, % Energy (Tijoá, Rio Verde and Rio Canoas) 7, , % 14, % Portonave 140, , % 131, % Aeroportos Brasil Viracopos 35,406 35, % 35, % Holding and Other (2,681) 191,182 n/d 191,182 n/d Net Income (Loss) (318,608) 67,686 n/d 78,646 n/d Toll Roads (179,598) 138,629 n/d 138,629 n/d Energy (Tijoá, Rio Verde and Rio Canoas) 4,304 (1,369) n/d 9, % Portonave 28,089 29, % 29, % Aeroportos Brasil Viracopos (46,178) 3,802 n/d 3,802 n/d Holding and Other (125,225) (102,855) 21.7% (102,855) 21.7% D 6

7 Operating Revenue (in R$ thousands) 4Q16 4Q15 D 4Q15 Pro Forma* D Toll Roads 304, , % 293, % Construction of Assets in Toll Roads 88, , % 277, % Construction Margin of Assets in Toll Roads 1,988 (34,985) % (34,985) % Port Operation - Third-Party Cargo 63,384 58, % 58, % Generation and Sales of Energy 16,600 49, % 13, % Airport Operation 34,032 32, % 32, % Other Revenue 6,970 4, % 4, % Gross Operating Revenue 516, , % 644, % Deductions from Gross Revenue (34,700) (25,789) 34.6% (22,187) 56.4% Net Operating Revenue 481, , % 622, % Construction of Assets 88, , % 277, % Adjusted Net Operating Revenue 392, , % 345, % Operating Revenue (in R$ thousands) 12M16 12M15 D 12M15 Pro forma* D Toll Roads 1,170, , % 919, % Construction of Assets in Toll Roads 372,539 1,218, % 1,218, % Construction Margin of Assets in Toll Roads 16, , % 185, % Port Operation - Third-Party Cargo 242, , % 217, % Generation and Sales of Energy 62, , % 63, % Airport Operation 123, , % 118, % Other Revenue 18,540 16, % 16, % Gross Operating Revenue 2,005,427 2,991, % 2,740, % Deductions from Gross Revenue (156,067) (150,396) 3.8% (123,673) 26.2% Net Operating Revenue 1,849,360 2,841, % 2,616, % Construction of Assets 372,539 1,218, % 1,218, % Adjusted Net Operating Revenue 1,476,821 1,622, % 1,398, % Consolidated Gross Revenue totaled R$516.1 million in the quarter and R$2,005.4 million in the year, down 19.9% and 26.8%, respectively, from the pro forma result of the same period last year, due to the following: PORT: Gross revenue from port operations increased 8.0% and 11.6% in 4Q16 and 12M16, respectively, mainly due to the growth in handling revenue on account of new lines that went operational at the terminal in July and August 2015, as well as the growth in export revenue. The impact of the comparison basis between the periods is remarkable since Portonave was affected by heavy rainfall in the region in September 2015, which caused the suspension of operations and placed other restrictions on the terminal for 480 hours. TOLL ROADS: Gross toll revenue grew 3.7% and 27.2% in the quarter and the year, respectively, due to tariff adjustments and, among other factors, the recovery of losses caused by the exemption of tolls on raised axles (Truck Driver s Law), and the start of toll collection at 11 toll plazas of Concebra at the end of June Note that gross revenue from the segment was negatively impacted by the decline in construction revenue (noncash effect) and by gross construction margin from contractual amendments due to the completion of works at Concepa in November 2015 and the slowdown of works at Concer. AIRPORT: gross revenue from airport operations increased 5.2% in the quarter and 3.5% in the year, mainly due to the growth in commercial revenue of 22.3% and 24.6% in 4Q16 and 12M16, respectively, driven by the transfer of all flights to the new passenger terminal in April 2016 and the increase in revenue from services and facilities, parking lot and business establishments. ENERGY: gross revenue from the energy segment reached R$16.6 million in 4Q16 and R$62.1 million in 12M16. Note that in the consolidated and energy segment results, for better comparison the Company 7

8 presented the pro forma results for 2015, which excludes information about Rio Verde and Rio Canoas, given that on November 26, 2015, the Company concluded the sale to CTG Brasil of its entire interest in these subsidiaries. Consolidated Adjusted Net Revenue came to R$392.5 million in 4Q16 and R$1,476.8 million in 12M16, up 13.7% in the quarter and 5.6% in the year, compared to the pro forma result of Revenue was impacted by the reduction in construction margin on contractual amendments with the completion of works relating to Concepa s contractual amendments and the slowdown of works relating to Concer s contractual amendments. This result was partially offset by: (i) the performance of the port sector, with a significant increase in handling; and (ii) increased in toll revenue, driven by the start of toll collection by Concebra at the end of June 2015 and by gains from tariff adjustments. Costs and expenses Operating Cost (in R$ thousands) 4Q16 4Q15 D 4Q15 Pro Forma* D Toll Roads Operations and Maintenance (32,883) (36,260) -9.3% (36,260) -9.3% Port Operation (5,858) (6,985) -16.1% (6,985) -16.1% Energy Generation (2,037) (6,573) -69.0% (785) 159.5% Airport Operation (6,803) (7,004) -2.9% (7,004) -2.9% Personnel Costs (41,362) (38,460) 7.5% (38,891) 6.4% Regulatory Agency Costs (20,534) (15,833) 29.7% (10,226) 100.8% Cash Cost (109,477) (111,115) -1.5% (100,151) 9.3% Depreciation and Amortization (cost) (89,341) (76,542) 16.7% (67,058) 33.2% Construction Cost (86,950) (277,804) -68.7% (277,804) -68.7% Provision for Maintenance (6,406) (21,894) -70.7% (21,894) -70.7% Total Operational Cost (292,174) (487,355) -40.0% (466,907) -37.4% Operating Cost (in R$ thousands) 12M16 12M15 D 12M15 Pro forma* D Toll Roads Operations and Maintenance (147,596) (97,198) 51.9% (97,198) 51.9% Port Operation (24,579) (25,217) -2.5% (25,217) -2.5% Energy Generation (4,552) (83,430) -94.5% (9,814) -53.6% Airport Operation (28,678) (27,265) 5.2% (27,265) 5.2% Personnel Costs (157,294) (125,792) 25.0% (125,674) 25.2% Regulatory Agency Costs (73,307) (91,714) -20.1% (63,840) 14.8% Cash Cost (436,006) (450,616) -3.2% (349,008) 24.9% Depreciation and Amortization (cost) (346,736) (328,657) 5.5% (275,287) 26.0% Construction Cost (366,614) (1,200,077) -69.5% (1,200,077) -69.5% Provision for Maintenance (42,394) (21,894) n/c (21,894) 93.6% Total Operational Cost (1,191,750) (2,001,244) -40.4% (1,846,266) -35.5% 8

9 Operating Expenses (in R$ thousands) 4Q16 4Q15 D 4Q15 Pro Forma* D General & Administrative Expenses (32,809) (40,284) -18.6% (37,496) -12.5% Management Compensation (9,541) (10,827) -11.9% (10,357) -7.9% Personnel Expenses (12,181) (14,214) -14.3% (13,702) -11.1% Other Administrative Revenues (Expenses) (5,804) 214, % 214, % Cash Expenses (60,335) 148, % 152, % Depreciation and Amortization (Expenses) (3,966) (5,487) -27.7% (5,328) -25.6% Other non recurring Administrative Revenues (Expenses) (115) (33,850) -99.7% (33,850) -99.7% Total Operational Expenses (64,416) 109, % 113, % Operating Expenses (in R$ thousands) 12M16 12M15 D 12M15 Pro forma* D General & Administrative Expenses (107,076) (96,891) 10.5% (79,805) 34.2% Management Compensation (31,711) (32,857) -3.5% (30,398) 4.3% Personnel Expenses (65,868) (66,865) -1.5% (64,196) 2.6% Other Administrative Revenues (Expenses) 17, , % 244, % Cash Expenses (186,672) 47, % 70, % Depreciation and Amortization (Expenses) (20,321) (17,930) 13.3% (16,546) 22.8% Other non recurring Administrative Revenues (Expenses) (4,941) (54,510) -90.9% (54,510) -90.9% Total Operational Expenses (211,934) (25,033) 746.6% (526) % Cash Cost and Expenses 4Q16 4Q15 D 4Q15 Pro Forma* Cash Cost (109,477) (111,115) -1.5% (100,151) 9.3% Cash Expenses (60,335) 148, % 152, % Cost + Expenses (Cash) (169,812) 37, % 52, % Cost + Expenses (Cash)/ Adjusted Net Operating Revenue 43.3% n/c n/c n/c n/c Cash Cost and Expenses 12M16 12M15 D 12M15 Pro forma* Cash Cost (436,006) (450,616) -3.2% (349,008) 24.9% Cash Expenses (186,672) 47,407 n/c 70, % Cost + Expenses (Cash) (622,678) (403,209) 54.4% (278,478) 123.6% Cost + Expenses (Cash)/ Adjusted Net Operating Revenue 42.2% 24.8% 17.3pp 19.9% 22.2pp D D The comparison base of 2015 was impacted by the recognition in other operating revenues (expenses) in 2015 of the profit from the sale to CTG Brasil of 100% of the interest held by the Company in the subsidiaries Rio Verde Energia, Rio Canoas Energia and TNE, in the amount of R$207.1 million. Excluding this effect, cash costs and expenses remained stable in the quarter, registering an increase of 2% in the year, despite the inflation rate of 6.3% in the period. The main impacts on the costs and expenses of the segments were: (i) (ii) Operations at Concebra, which increased costs and expenses in the toll roads segment in the year; Efficiency gain in port operation due to the reduction in fuel consumption resulting from the use of electricity in the terminal equipment. This effect was impacted by the increase in personnel costs caused by the increase in profit sharing and bonus for the acquisition of new lines at the terminal. The impact of the comparison base of 2015 also drove the change in the period, due to the R$10.2 million received as insurance indemnity relative to works to strengthen the quay; 9

10 (iii) Reduction in airport operating costs in the quarter, due to: (i) the efficiency gain with the transfer of all flights to the New Passenger Terminal (T1) at the end of April 2016; (ii) the reduction in costs and expenses with the restructuring of the workforce and the reduction in work shifts; and (iii) the review of agreements with service providers with the focus on cutting costs linked to decline in demand during the period. Note that the variation in costs and expenses was affected by the comparison base, which was in turn affected by the change in Triunfo s interest in the Airport, from 22.95% to 24.54% in june ADJUSTED EBITDA Adjusted EBITDA totaled R$222.7 million in the quarter and R$854.1 million in the year. The result was affected by: (i) the economic slowdown in the period; (ii) the comparison base of 2015, which includes the profit from the divestment of energy assets of R$207.1 million. The result was partially offset by the positive effect from the performance of the port and by tariff adjustments at toll road concessions. EBIT and Adjusted EBITDA 4Q16 4Q15 D 4Q15 Pro Forma* Adjusted EBIT 129, , % 270, % EBIT 124, , % 219, % Provision for Maintenance 6,406 21, % 21, % Non-recurring Expenses , % 33, % Construction Assets Revenue (644) (39,894) -98.4% (39,894) -98.4% Construction Assets Cost , % 39, % Concebra Construction Revenue (79,517) (128,179) -38.0% (128,179) -38.0% Concebra Construction Cost 77, , % 124, % Adjusted EBITDA 222, , % 397, % Depreciation and Amortization 93,307 82, % 127, % EBITDA Margin 56.7% 110.0% -53.2pp 115.3% -58.5pp EBIT and Adjusted EBITDA 12M16 12M15 D 12M15 Pro forma* Adjusted EBIT 487, , % 761, % EBIT 445, , % 703, % Provision for Maintenance 42,394 21, % 21, % Non-recurring Expenses 4,941 54, % 54, % Construction Assets Revenue (53,323) (106,414) -49.9% (106,414) -49.9% Construction Assets Cost 52, , % 104, % Concebra Construction Revenue (200,043) (638,580) -68.7% (638,580) -68.7% Concebra Construction Cost 194, , % 622, % Adjusted EBITDA 854,143 1,219, % 1,108, % Depreciation and Amortization 367, , % 346, % EBITDA Margin 57.8% 75.2% -17.3pp 79.3% -21.4pp Adjustments: Adjusted EBITDA refers to earnings before interest, taxes, depreciation and amortization, adjusted for the Provision for Maintenance IAS 37 (a non-cash item included in Operating Costs), non-recurring expenses, non-controlling interest and equity income. To calculate EBITDA margin, we use adjusted net revenue (excluding construction revenue, which is an accounting entry with no cash impact) as the denominator. Results are compared with 4Q15 and 2015 pro forma results, which exclude the result of energy assets Rio Verde and Rio Canoas: on November 26, 2015, the Company concluded the sale to CTG Brasil of its entire interest in these subsidiaries. D D 10

11 NET INCOME (LOSS) AND DIVIDEND CALCULATION BASE Net Loss totaled R$194.1 million in the quarter and R$318.6 million in the year, chiefly due to the reversal of R$116.0 million of toll roads segments regarding the deferred taxes on income and social contribution tax loss carryforwards at the subsidiaries Vessel and NTL, since the recoverability of credits in the short term is not expected. The financial result affected the quarterly result by R$216.0 million and the annual result by R$681.4 million. The financial result decreased in the quarter due to the early redemption of 100% of the 3 rd and 4 th issues of debentures of the holding company in the amounts of R$64.2 million and R$311.2 million, respectively. On the other hand, the financial result was adversely affected by the higher inflation adjustment on financial operations pegged to the CDI, IPCA and TJLP rates and short-term debt renewals. The financial result was also affected by the First Issue of Convertible Debentures for private placement of the subsidiary Vênus Participações e Investimentos S.A. The principal amount of the issue is R$647.3 million, at a remuneration of (i) 13.5% p.a. in the first 12 months; (ii) 14.5% p.a. from the 13 th to the 24 th month; and (iii) 15.5% as of the 25 th month. The debt term is 50 months, maturing at full in January Due to the loss in the year, no balance is available for shareholders in Operating Profit 4Q16 4Q15 D 4Q15 Pro Forma* Profit Before Financial Income 124, , % 272, % Financial Income (216,046) (234,682) -7.9% (221,296) -2.4% Financial Revenue 10,602 24, % 24, % Financial Expenses (226,648) (259,182) -12.6% (245,796) -7.8% Operating Profit (91,193) 46, % 51, % Income Tax (102,918) 12, % 8, % Current Tax (9,377) (23,108) -59.4% (27,551) -66.0% Deferred Tax (93,541) 35, % 35, % Net Income (Loss) (194,111) 59, % 59, % D Operating Profit 12M16 12M15 D 12M15 Pro forma* Profit Before Financial Income 445, , % 757, % Financial Income (681,389) (659,322) 3.3% (591,718) 15.2% Financial Revenue 43,564 53, % 53, % Financial Expenses (724,953) (713,156) 1.7% (645,552) 12.3% Operating Profit (235,713) 155, % 165, % Income Tax (82,895) (87,740) -5.5% (85,922) -3.5% Current Tax (67,164) (74,646) -10.0% (72,828) -7.8% Deferred Tax (15,731) (13,094) 20.1% (13,094) 20.1% Net Income (Loss) (318,608) 67, % 79,908 n/d D Dividend Basis 4Q16 4Q15 D 12M16 12M15 D Net Income/Loss (194,111) 59, % (318,608) 67, % Amount Realized of Revaluation Reserve and Asset Valuation Adjustment 10,666 0 n/c 43,542 32, % Creation of Legal Reserve (5% ) - 0 n/c - (401) n/c Other effects - - n/c - - n/c Dividend Basis (183,445) 59, % (275,066) 99,977 n/c 11

12 Toll Roads Segment Triunfo is a shareholder in five toll road concessionaires: Concer (65.0%), Concepa (100%), Econorte (100%), Concebra (100%) and Transbrasiliana (100%). The operating performance presented in this release corresponds to 100% of the business and the financial performance reflects Triunfo s interest in the business. Operational Performance 4Q16 4Q15 D 12M16 12M15 D Concer (in thousands) 5,893 6, % 23,753 26, % Triunfo Concepa (in thousands) 9,252 9, % 36,192 37, % Triunfo Econorte (in thousands) 3,273 3, % 13,286 14, % Triunfo Transbrasiliana (in thousands) 5,972 6, % 24,014 25, % Triunfo Concebra (in thousands) 21,176 21, % 83,588 44, % Total Equivalent Traffic (in thousands) 45,566 47, % 180, , % Average Tariff (R$) % % The volume of paying vehicle equivalents reached 45.6 million, down 4.3% in 4Q16. In the year, total paying vehicle equivalents reached million, up 22.4%, mainly due to the start of toll collection at Concebra on June 27, To facilitate identification of the impacts of the economic slowdown on our paying vehicle volumes, we adjusted YTD volumes in 2016 by: (i) excluding traffic at Concebra; and (ii) excluding the impact of toll exemption for raised axles of empty trucks made by the Company (Truck Driver s Law, whose effect has already been rebalanced). Adjusted volume in 2016 totaled 98.5 million vehicle equivalents, down 4.7% from % Composição do Tráfego 4T16 13% 7% 13% 20% Concer Concepa Econorte Transbrasiliana Concebra Effective average toll in the quarter increased 7.8%, mainly due to the tariff adjustment to rebalance agreements at Concer (12.5% in August 2016), Concepa (9.5% in October 2016), Econorte (13.0% in December 2016) and Transbrasiliana (11.6% in December 2016). In the annual comparison, average tariff increased 2.1%, due to tariff adjustments at concessionaires, partially affected by Concebra tolls in the comparison base. Resolution 5,236 published in the Federal Register on December 16, 2016 (Section 1, page 269) approved the extraordinary adjustment of average tariff at Concebra of 14.2%. This adjustment rebalances the impact of Law 13,013/2015 (Truck Driver s Law), in effect since April 17, 2015, which increased the maximum tolerance while weighing cargo and passenger vehicles to 5% on total gross weight and 10% on gross weight transmitted per axle of vehicles to the surface of public roads. The new toll comes into effect at the toll booths at Concebra s next ordinary toll review in June

13 Financial Performance Toll Roads Segment INCOME STATEMENT (in thousands) 4Q16 4Q15 D 12M16 12M15 D Gross Revenues 400, , % 1,522,149 2,231, % Revenues from Toll Roads 304, , % 1,170, , % Other Revenues 6,485 4, % 16,626 14, % Construction of Assets in Toll Roads 88, , % 319,216 1,111, % Construction Margin of Assets in Toll Roads 1,988 (34,985) % 16, , % Taxes on Gross Revenues (26,150) (14,208) 84.1% (103,326) (81,343) 27.0% Net Revenues from Operations 374, , % 1,418,823 2,150, % Construction of Assets in Toll Roads 88, , % 319,216 1,111, % Adjusted Net Operating Revenue 286, , % 1,099,607 1,038, % Operational Costs (in R$ thousands) 4Q16 4Q15 D 12M16 12M15 D Operactional Cost (excluding D&A) (161,959) (317,757) -49.0% (641,735) (1,314,867) -51.2% Operating and Maintenance (32,883) (36,260) -9.3% (147,596) (97,198) 51.9% Provision for Maintenance (6,406) - 21, % (42,394) - 21, % Costs with Personnel (25,181) (23,748) 6.0% (96,152) (68,654) 40.1% Regulatory Agency Costs (11,238) (1,697) 562.2% (41,444) (31,372) 32.1% Construction Cost (86,251) (234,158) -63.2% (314,149) (1,095,749) -71.3% Operational Expenses (in R$ thousands) 4Q16 4Q15 D 12M16 12M15 D Operational Expenses (excluding D&A) (41,801) (53,201) -21.4% (145,349) (114,814) 26.6% General & Administrative (40,544) (47,040) -13.8% (141,866) (120,453) 17.8% Other Administrative Expenses (1,257) (6,161) -79.6% (3,483) 5, % EBIT 98,863 62, % 353, , % Financial Income (136,590) (113,604) 20.2% (444,445) (297,499) 49.4% Financial Revenue 13,493 11, % 38,193 28, % Financial Expenses (150,083) (125,237) 19.8% (482,638) (325,871) 48.1% Income Tax (105,092) 13, % (88,838) (71,605) 24.1% Net Income (Loss) (142,819) (37,668) 279.2% (179,598) 138, % EBIT and Adjusted EBITDA 4Q16 4Q15 D 12M16 12M15 D Adjusted EBIT 104,441 83, % 394, , % EBIT 98,863 62, % 353, , % Non-recurring Expenses (Revenues) 1, ,442 n/d 3,696 9,216 n/d Provision for Maintenance - IAS 37 6,406 21, n/d 42,394 21, n/d Concebra Construction Margin (2,012) (3,248) -38.1% (5,067) (16,186) -68.7% Adjusted EBITDA 176, , % 672, , % Depreciation and Amortization (D&A) 72,225 52, % 278, , % Adjusted EBITDA (excluding Construction Margin) 174, , % 656, , % Leverage (in R$ thousands) 4Q16 2Q16 D Net Debt 1,992,020 2,034, % EBITDA (LTM) 672, , % Net Debt / Adjusted EBITDA (LTM) 3.0x 3.2x -0.2x 13

14 REVENUES Adjusted net revenue from the segment came to R$286.6 million in the quarter (+15.5%), mainly due to the growth in toll revenue in the period, explained by the annual tariff adjustments at the concessionaries. In 2016, adjusted net revenue reached R$1.1 billion (+5.9%) driven by higher toll revenue (+27.2%), due to the start of toll collection at Concebra in June 2015 and toll adjustments in the period. Revenue was negatively affected by the decrease in gross construction margin on contractual amendments at Concer, which registered R$2.0 million in the quarter and R$16.2 million (-91.2%) in the year. Revenue from construction, though an accounting entry (with no cash effect), also decreased 62.8% in 4Q16 and 71.3% in 12M16. Excluding the effect of revenue from construction and construction margin on contractual amendments, comparable adjusted revenue in 2016 grew 27.0% compared to the previous year, driven by tariff adjustments in the period and the start of toll collection at Concebra in June Tariff adjustments that improved toll revenue in the period were at Concer (12.5% in August 2016), Concepa (9.5% in October 2016), Econorte (13.0% in December 2016) and Transbrasiliana (11.6% in December 2016). Note that, as published in the Federal Register on December 16, 2016 (Section 1, page 269), Concebra obtained approval for an extraordinary tariff review of 14.17% to rebalance the impact caused by Law 13,013/2015 (Truck Driver s Law). The new toll comes into effect at the toll booths at the next ordinary toll review in June COSTS AND EXPENSES Costs and expenses (excluding construction costs, provision for maintenance, and depreciation and amortization) totaled R$111.1 million in the quarter (-3.3%) and R$430.5 million in the year (+38.0%), mainly due to: (i) (ii) (iii) (iv) increase of 51.9% in toll road operating and maintenance costs in the year due to higher spending by Concebra on conservation and works on the highway (heavier rainfall in the period), as well as the impact of the comparison base of 2015 due to the start of toll collection in June 2015; increase in personnel costs by 6.0% in the quarter and 40.1% in the year, mainly due to the hiring of professionals for the start of toll collection at Concebra; increase in general and administrative expenses of 17.8% in the year, due to Concebra s operations mentioned above. In the quarter, the decrease was due to the impact of the 9.3% reduction in toll road operation and maintenance due to cost cutting initiatives at the concessionaires, which enabled greater synergy among projects and optimization of resources. ADJUSTED EBITDA As a result of the above items, Adjusted EBITDA from the segment grew 30.2% in the quarter and fell 8.6% in the year. Gross construction margin from contractual amendments decreased in the quarter and in the year due to the completion of construction works by Concepa in November 2015 and the slowdown in construction works at Concer. Excluding this effect, Adjusted EBITDA increased 2.3% in the quarter and 19.3% in the year, reaching R$174.7 million and R$656.5 million, respectively, due to gains from tariff adjustments in the period. 14

15 NET INCOME (LOSS) Net loss from the segment totaled R$142.8 million in 4Q16 and R$179.6 million in the year, chiefly due to the reversal of R$116.0 million of deferred taxes on income and social contribution tax loss carryforwards at the subsidiaries Vessel and NTL, since the recoverability of credits in the short term is not expected. The financial result of R$136.6 million (+20.2%) in the quarter and R$444.4 million (+49.4%) in 2016 also adversely impact the net loss in the period, mainly due to higher inflation adjustment on financial operations pegged to the CDI, IPCA and TJLP rates and to short-term debt renewals. LEVERAGE Leverage in the toll roads segment reached 3.0 times in 4Q16. Port Segment Triunfo holds 50% interest in Portonave Terminais Portuários de Navegantes S.A., located in Santa Catarina. Portonave, in turn, holds 100% interest in Iceport, which operates a cold storage facility. The operating performance presented in this release corresponds to 100% of the business and the financial performance reflects Triunfo s interest in the business (50%). Operational Performance 4Q16 4Q15 D 12M16 12M15 D TEUs - Twenty-equivalent Units 241, , % 910, , % Boxes Handling (Full) 95,735 85, % 364, , % Boxes Handling (Empty) 43,673 30, % 164, , % In 4Q16, the volume of TEUs (twenty-foot equivalent units) handled reached 241,526, up 25.4% from 4Q15. In the year, container handling volume grew 34.0% from 2015 to 910,870 TEUs. This result is chiefly explained by the operation of five lines obtained by Portonave in August 2015 and renewed in September Note that the start of operations of a new line obtained in June 2016 operating a route to Asia also positively impacted handling volume. In August 2016, Portonave surpassed the mark of 5 million TEUs handled. The number refers to the volume handled since the Terminal s operational startup in October Portonave maintains its market share in container handling in Santa Catarina at above 50% and has consolidated its position as one of the country s leaders in this segment. It holds the South American productivity record, with moves per hour (MPH) and an average of 115 mph in 2016, which attest to the efficiency of its port operations. With this, Portonave operates 13 lines that jointly led to the record in container handling in Handling mix in 4Q16 was 40.2% imports, 38.2% exports and 21.5% transshipment. 15

16 Financial Performance Port Segment INCOME STATEMENT (in thousands) 4Q16 4Q15 D 12M16 12M15 D Gross Revenues 63,385 58, % 242, , % Handled Containers Revenue 22,702 18, % 88,418 71, % Storage Revenue and Others Revenues 36,768 37, % 138, , % Services Revenue - Iceport 3,915 2, % 15,840 12, % Taxes on Gross Revenues 473 (1,727) % (19,071) (18,874) 1.0% Net Operating Revenue 63,858 56, % 223, , % Operational Costs (excluding D&A) (15,956) (14,991) 6.4% (61,413) (56,197) 9.3% Operating and Maintenance (3,937) (5,060) -22.2% (17,007) (18,888) -10.0% Operating Cost - Iceport (1,921) (1,925) -0.2% (7,572) (6,329) 19.6% Costs with Personnel (10,098) (8,006) 26.1% (36,834) (30,980) 18.9% Operational Expenses (excluding D&A) (10,395) 5, % (20,170) (9,565) 110.9% General & Administrative (6,595) (7,209) -8.5% (21,899) (23,692) -7.6% Other Administrative Revenues (Expenses) (5,380) 10, % ,588 n/c Equity Income 1,580 1, % 1,352 1, n/c EBIT 22,628 32, % 83,184 77, % Financial Income (9,415) (11,451) -17.8% (40,330) (39,076) 3.2% Financial Revenue 37,816 1, % 40,480 3, % Financial Expenses (47,231) (12,746) 270.6% (80,810) (42,632) 89.6% Income Tax (4,170) (3,727) 11.9% (14,765) (9,106) 62.1% Net Income (Loss) 9,043 15, % 28,089 29, % EBIT and Adjusted EBITDA 4Q16 4Q15 D 12M16 12M15 D Adjusted EBIT 21,047 31, % 81,831 76, % EBIT 22,628 32, % 83,184 77, % Non-recurring Expenses (Revenues) (1) 0 n/c (1) 0 n/c Equity Income (1,580) (1,539) 2.7% (1,352) (1,539) n/c Adjusted EBITDA 35,926 45, % 140, , % Depreciation and Amortization (D&A) 14,879 14, % 58,904 55, % Leverage (in R$ thousands) 4Q16 2Q16 D Net Debt 224, , % EBITDA (LTM) 140, , % Net Debt / Adjusted EBITDA (LTM) 1.6x 1.8x -0.2x REVENUES Gross revenue from the port segment consists of: (i) revenue from container handling; (ii) revenue from other services such as container scanning, storage, rental of reefer points and ISPS Code charges; and (iii) revenue from cargo handling at Iceport s cold storage (in-out). Gross revenue from the segment reached R$63.4 million (+8.0%) in the quarter and R$242.7 million (+11.6%) in the year. Deductions in the quarter showed a positive amount due to the reversal of provisions for losses of R$4.3 million in gross revenue deduction. For this reason, net revenue from the segment totaled R$63.8 million (+12.1%) in the quarter and R$223.7 million (+12.6%) in the year, due to the increase in handling revenue resulting from the start of operations of new lines at the terminal. Revenue was driven by the increase in 16

17 yard revenue, mainly caused by the higher stored volume and the growth in ancillary revenue. Total yard revenue accounts for approximately 57% of the port s total revenue and comes mainly from import revenue, which represents 39% of total revenue. Note that the increase in TEU handling is not fully reflected in revenue because of the drop in average price, mainly due to the higher share of empty containers compared to full containers. OPERATING COSTS AND EXPENSES Operating costs and expenses (excluding depreciation and amortization) totaled R$26.3 million (+168.8%) in the quarter and R$81.56 million (+24.1%) in the year, due to: (i) the increase in personnel costs caused by the increase in profit sharing and bonus for the acquisition of new lines at the terminal; (ii) the impact of the comparison base of 2015, due to the gain of R$10.2 million received as insurance indemnity to rebalance the Company s cash position for works to strengthen the quay. Considering only the terminal s operating costs and expenses, Portonave registered a decrease of 22.2% in the quarter and 10.0% in the year, due to the reduction in fuel consumption after the use of electricity to operate container handling equipment in the terminal yard. The reduction in diesel costs was steeper than the increase in electricity costs. ADJUSTED EBITDA Due to the abovementioned factors, Adjusted EBITDA from the port segment totaled R$35.9 million in the quarter and R$140.7 million in the year. NET INCOME Net Income from the segment came to R$9.0 million in 4Q16 and R$28.1 million in 12M16. LEVERAGE Leverage of the port segment stood at 1.6x times in the quarter. Energy Segment Sale of Triunfo Rio Verde and Triunfo Rio Canoas: On November 26, 2015, the Company concluded the sale to CTG Brasil of its entire interest in its subsidiaries, Rio Verde Energia, Rio Canoas Energia and TNE Triunfo Negócios de Energia. On that date, CTG Brasil paid the installment for concluding the transaction, amounting to R$918.4 million. The balance of R$48.3 million related to the final adjustment of the installment for concluding the transaction was paid on February 24, The proceeds were used to deleverage the Company and strengthen its financial liquidity. Tijoá: In the energy segment, Triunfo retains its 50.1% interest in Tijoá, which is responsible for operations and maintenance of the Três Irmãos Hydroelectric Plant. The financial performance reflects Triunfo s interest in this subsidiary. 17

18 Financial Performance Energy Segment INCOME STATEMENT (in thousands) 4Q16 4Q15 D 4Q15 Pro Forma* D Gross Revenues 17,073 50, % 13, % Taxes on Gross Revenues (4,251) (5,294) -19.7% (1,692) 151.2% Net Operating Revenue 12,822 44, % 12, % Operactional Cost (excluding D&A) (10,614) (21,356) -50.3% (10,392) 2.1% Operating and Maintenance (2,037) (6,573) -69.0% (785) 159.5% Costs with Personnel (1,501) (2,091) -28.2% (2,522) -40.5% Regulatory Agency Costs (7,076) (12,692) -44.2% (7,085) -0.1% Operational Expenses (excluding D&A) 235 (3,801) % (1,945) % General & Administrative 237 (3,720) % (1,914) % Other Administrative Revenues (Expenses) (2) (81) -97.5% (31) -93.5% EBIT 2,710 9, % 1, % Financial Income 49 (13,124) % % Income Tax (386) 4, % (190) 103.2% Net Income (Loss) 2,373 1, % (140) % EBITDA 2,447 19, % 1, % Depreciation and Amortization (D&A) 267 (9,736) % (224) % Other non recurring Administrative Revenues (Expenses) (4) % 0 n/c INCOME STATEMENT (in thousands) 12M16 12M15 D 12M15 Pro Forma D Gross Revenues 63, , % 65, % Taxes on Gross Revenues (15,929) (33,435) -52.4% (6,712) 137.3% Net Operating Revenue 48, , % 58, % Operactional Cost (excluding D&A) (36,033) (145,190) -75.2% (43,582) -17.3% Operating and Maintenance (4,552) (83,430) -94.5% (9,814) -53.6% Costs with Personnel (5,762) (7,350) -21.6% (7,232) -20.3% Regulatory Agency Costs (25,719) (54,410) -52.7% (26,536) -3.1% Operational Expenses (excluding D&A) (4,050) (12,654) -68.0% % General & Administrative (4,050) (16,145) -74.9% (4,187) -3.3% Other Administrative Revenues (Expenses) 0 3, % 4, % EBIT 7,476 70, % 13, % Financial Income (237) (66,741) -99.6% % Income Tax (2,935) (5,072) -42.1% (3,254) -9.8% Net Income (Loss) 4,304 (1,369) % 9, % EBITDA 7, , % 14, % Depreciation and Amortization (D&A) (445) (54,935) -99.2% (1,195) -62.8% Other non recurring Administrative Revenues (Expenses) % 0 n/c For better comparison, the Company presented the pro forma results for 2015, which excludes information about Rio Verde and Rio Canoas, given that the Company concluded the sale to CTG Brasil of its entire interest in these subsidiaries. Compared with the pro forma result in 2015, net revenue from the segment reached R$12.8 million (+4.8%) in the quarter and R$48.0 million (-18.5%) in the year. Operating costs and expenses (excluding depreciation and 18

19 amortization) totaled R$10.4 million (-15.9%) in the quarter and R$40.1 million (-7.6%) in the year. Considering the above-mentioned factors, the energy segment posted Adjusted EBITDA of R$2.4 million in the quarter and R$7.9 million in the year. The result in the quarter and the year was chiefly affected by the comparison base of 2015, which includes the operations of the subsidiary Rio Claro, which provides operational and maintenance services to the Plants. In 2016, Rio Claro shut down operations. Excluding the effect of Rio Claro, the segment's revenue increased 12.6%, due to the tariff adjustments between 2015 and 2016 at Tijoá. In 2016, the energy segment s non-recurring expenses totaled R$1.7 million due to changes in the segment s ownership structure: in July 2016, FIP, which held Triunfo's interest in Tijoá, was dissolved. Also note that, in the 2015 comparison basis, the segment registered a gain of R$4.4 million in Other Operating Revenues regarding the insurance indemnity to Tijoá to repair one of the Generating Units of the Três Irmãos Plant. Airport Segment The concessionaire Aeroportos Brasil Viracopos S.A. was created in 2012 to operate the Campinas International Airport Viracopos for 30 years. Triunfo holds 25.0% interest in the Viracopos International Airport. The operating performance presented in this release corresponds to 100% of the business and the financial performance reflects Triunfo s interest in the business. Airport Performance 4Q16 4Q15 D 12M16 12M15 D Cargo Total (1) (ton) 49,190 45, % 169, , % Import 29,513 31, % 103, , % Export 17,776 12, % 58,570 52, % Other 1,901 1, % 7,363 5, % Passengers Total (2) (thousand) 2,407 2, % 9,325 10, % Domestic 1,158 1, % 4,511 5, % International % % Conexion 1,125 1, % 4,352 4, % Movements Total (3) (thousand) 29,132 31, % 115, , % (1) Cargo - Import and ex port (2) Pessengers - boarding and alighting (w ithout military ). (3) Aircrafts - landing and Take-off (w ithout military ). Cargo volume handled by the airport increased 8.9% in the quarter and decreased 7.5% in the year. Growth in the quarter was driven by exports in the period. In the year, the reduction in cargo volume reflects the economic scenario in 2016, driven by the reduction in exports due to the appreciation of the U.S. dollar in the period. The decline in passenger and aircraft traffic is due to: (i) the reduction in domestic commercial lines in 2016 (- 3.1% of Azul and -49.1% of other companies); and (ii) cancellation of all international operations of Gol, American Airlines and Copa Airlines. 19