MATERIAL FACT

CCR S.A. (“CCR” or “Company”) (B3: CCRO3; Bloomberg: CCRO3BZ; Reuters: CCRO3.SA) hereby announces to its shareholders and the market in general the measures it has been taking to care for society as a whole, continue to provide services to the public and protect its employees and the employees of its subsidiaries/concessionaires against the threats of COVID-19 (“Coronavirus”), characterized as a pandemic by the World Health Organization.

The Company is watching the current scenario and the consequences of the pandemic closely and has adopted the following main measures to help prevent the Coronavirus spread:

(i) Creation of a crisis committee to manage initiatives related to this pandemic;

(ii) An Integrated Health Management channel, with a medical helpline, available 24 hours a day to Grupo CCR employees and their dependents, and clarification of doubts by the Occupational Health team;

(iii) Online lectures on the Coronavirus disease with Company doctors;

(iv) Home isolation for seven days for all employees who return from international trips, upon communication to the Occupational Health team;

(v) Monitored home leave for employees with cough, fever or shortness of breath, supervised by the Occupational Health team;

(vi) Recommendation to restrict corporate domestic or international travel to emergencies; and

(vii) Recommendation that employees work remotely when their job allows it.

Given the uncertainty about the evolution of the Coronavirus pandemic and its consequences, it is very difficult to predict the final impact it will have on the financial market and the global economy and, consequently, on the activities of Grupo CCR in Brazil and abroad. In the last few days, the impact on traffic on Grupo CCR highways concessions, a business that represented around 75% of 2019 EBITDA, has still been limited, with a reduction in light vehicles, possibly because commuter traffic has been affected by remote work. On the other hand, heavy vehicle traffic increased slightly, since there was no measure linked to the restriction of cargo mobility.

In the mobility division, which represented approximately 15% of 2019 EBITDA, we have seen, in the last few days, a reduction in demand, with a decline of around 30% in the number of passengers transported compared to the usual figure. The Airport division, which represented around 10% of 2019 EBITDA, has been most affected. The airports of San Jose, in Costa Rica, Quito, in Ecuador, and Curaçao have seen a significant reduction in operations, due to mobility restrictions imposed by the local authorities in the countries where they are located. BH Airport (Confins Airport) and the airport operations in the United States are also being affected, due to a reduction in domestic and international flights.

In response to the possible economic impact arising from the evolution of COVID-19 in Brazil, the Company is taking immediate measures to preserve its financial position, such as preserving cash, containing expenses and prioritizing investments. CCR has always adopted the highest standards of financial management, and this discipline will certainly be of great value to face this extraordinary moment.

Grupo CCR continues to be committed to the safety of its employees and the communities in the regions where it operates, as well as being guided by transparency and good corporate governance practices. The Company will keep its shareholders and the market in general informed of any future developments on the matter.

 

São Paulo/SP, March 18, 2020.

CCR S.A.
Waldo Perez
Investor Relations Officer