Legal Notices And Risk Factors

Cautionary Statement Regarding Forward-Looking Information

This investor relations website contains forward-looking statements. Statements that are not historical facts, including statements about CCR beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. CCR cautions investors that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to:

  • Brazilian government actions;
  • Brazilian economic, political or social conditions;
  • government measures relating to the continuance or non-continuance of the road concession program;
  • devaluation of the real;
  • the perception of risk in emerging markets, especially in Latin America;
  • actions of Brazilian granting authorities, including any unilateral actions in the form of challenges by such granting authorities;
  • substantial inflation;
  • the outcome of pending litigation;
  • public reaction to increases in CCR tariffs;
  • decreased traffic on CCR toll roads, including as a result of increased fuel costs;
  • CCR level of debt;
  • fluctuations in interest rates;
  • competition; and
  • other factors contained under item Risk Factors (below).
Risk Factors

Investors should carefully consider the risks described below before making an investment decision. CCR business, financial condition or results of operations could be materially adversely affected by any of these risks. The trading price of the Company common shares could decline due to any of these risks, and you may lose all or part of your investment. For a detailed and complete list of risk factors please click here to access the latest Public Offering Prospectus.

1) Risks Relating to Brazil

  • CCR operations are mainly in Brazil, and therefore Brazilian economic and political conditions may adversely affect its financial condition and results of operations and the market price of its common share.
  • Inflation, and government measures to curb inflation, may contribute significantly to economic uncertainty in Brazil and to heightened volatility in the Brazilian securities market.
  • Significant volatility in the value of the real in relation to the U.S. dollar may lead to substantial changes in CCR liabilities denominated in U.S. dollars, in its funding cost and in the value, in other currencies, of its common shares.
  • CCR is subject to interest rate risk because the company captures substantial funds.
  • The perception of risk in emerging economies may impede the Company access to international capital markets, hinder its ability to finance its operations and adversely affect the market price of CCR common shares.

2) Risks Relating to Toll Road Industry and CCR Business

  • CCR operates in a highly regulated environment, and its operating results could be adversely affected by governmental actions.
  • The granting authorities have substantial discretion in determining the terms of CCR concessions, so the Company may be subject to unpredicted increases in costs or decreases in revenues.
  • Although CCR concessions provide for compensatory adjustments to their economic terms intended to offset cost increases outside CCR control, if these adjustments do not provide for timely increases in its cash flow, the Company financial condition and results of operations will be adversely affected.
  • Termination of its concessions by the granting authorities may prevent the Company from realizing the full value of certain assets and cause CCR to lose future profits without adequate compensation.
  • Reduced vehicle use could result from adverse changes in economic conditions or increased fuel prices, adversely affecting CCR operating results.
  • If inflation increases substantially in Brazil, CCR inability to raise tolls in a timely manner may adversely affect its operating results and the value of its shares.
  • Increased competition could reduce its revenues.

3) Risk Factors Relating to CCR and its Shares

  • A small number of shareholders can exercise substantial control over CCR, and their interests may conflict with those of its other investors.
  • The Company may be unable to raise sufficient debt or equity financing required for investments in new concessions and the implementation of its strategy.
  • CCR ability to grow by bidding successfully for new concessions and acquiring existing concessionaires could be adversely affected by future regulatory action or government policy relating to Brazil’s toll road concession program.
  • The Company ability to distribute dividends is subject to limitations.