The valuation, which is indicative, includes only six concessions that have been operational for some time and represent a sizeable proportion of the portfolio; the rest are counted at book value
In 2004, the company attained 143.7 million in consolidated net income
Revenues amounted to 483.9 million euro, a 23.7% increase
EBITDA rose by 24.6% to 336.6 million euro, and the EBITDA margin was 69.6%
EBIT amounted to 263.7 million euro, 22.4% more than in 2003
Sharp increase in traffic on the toll roads in Spain and abroad plus a notable increase in managed parking spaces (+14.5%)
Highlights: Entry into the US toll road market; favourable court decision in Canada; and opening of toll roads in Spain and Portugal
Cintra, a company that specialises in bidding for and managing toll roads and car parks, has presented an indicative valuation of its main operating assets. The valuation, which totals 5.032 billion euro, includes six concessions that have been operating for some time and represent a significant proportion of its portfolio. The discounted shareholder cash flow method was used. Europistas was valued at its market value. The other assets are counted at book value for the moment (see attached table).
Cintra attained 143.7 million euro in consolidated net income in 2004. Excluding the extraordinary impact of the IPO in 2004 and the reversal of provisions in 2003, net income would have risen by 3.8% to 124.6 million euro.
Traffic and revenues rose significantly on practically all the companys toll roads in Spain and abroad, and it increased the number of car park concessions. Additionally, two new toll roads Radial 4 in Spain and Scut Algarve in Portugal were opened to traffic.
EBITDA increased by 24.6% to 336.6 million euro and the EBITDA margin reached 69.6%. EBIT rose 22.4% to 263.7 million euro.
Revenues totalled 483.9 million euro, 23.7% more than in 2003.
Cintra was floated on the stock exchange on 27 October 2004 at a 8.24 euro per share. The operation, one of the largest in Europe in 2004 and the largest in Spain in three years, amounted to 1,536.6 million euro. Upon completion of the IPO, which included a primary and a secondary offering, Cintra is owned 62.03% by Ferrovial and the remainder is listed on the four Spanish stock exchanges (free float).
Toll roads: sharp increases in traffic, and entry into the US market
Cintras toll road business, currently comprising 17 concessions, increased revenues by 18.2% to 451.8 million euro, driven by positive traffic and revenue performance on all roads and the opening to traffic of the Radial 4 (Spain) and Scut Algarve (Portugal).
EBITDA increased by 21.1% to 332.2 million euro. The 407 ETR in Toronto made a major contribution (52% of EBITDA), followed by Ausol (Málaga-Estepona-Guadiaro).
During the year, traffic increased strongly on all roads:
– the 407 ETR registered 271,892 daily trips (annual average) (+5.3%) and a 7.5% increase in vehicle kilometres travelled to 1,950 million, after an average 7.3% toll increase;
– traffic on Ausol I reached 19,340 vehicles (average daily traffic), while Ausol II attained 16,565, up 6.3% and 11.1%, respectively, over 2003.
– traffic on Autema rose 8% in 2004 to 18,326 (average daily traffic – ADT);
– traffic on Europistas rose 4.9%.
Main events in the toll road area during the period:
– Cintra entered the US concession market by landing the contract for the Chicago Skyway Toll Bridge (contract signed early in 2005) and being chosen as strategic partner of the State of Texas for 50 years to design and plan one of the most important infrastructure projects in the state, the Trans-Texas Corridor;
– In January 2005, the Ontario Superior Court found in favour of the 407 ETR operating company and rejected the Province of Ontarios appeal against the 10 July 2004 arbitration decision that 407 ETR did not need to apply for authorisation from the Province in order to increase tolls. This confirmed the trend of resolutions in favour of 407 ETR which had commenced with the stay order in February 2004;
– In June, financing of 522 million euro was completed for the construction of the Ocaña-La Roda toll road, which Cintra will manage for 36 years;
– On 24 August, the Chilean government published the Revenue Distribution Mechanism (MDI) for the Talca-Chillán toll road under which the concession-holder is assured an extension of the contract on the road until a present value of agreed revenues is attained.
Car parks: 14.5% more parking spaces, and Cintra retains its domestic market leadership
New off-street car parks and new concession contracts enabled the car parks division to remain as domestic market leader in 2004. At year-end, Cintra was managing 207,447 parking spaces, 14.5% more than in 2003.
In terms of segments, off-street spaces increased by 8.5% to 48,451, representing 23.3% of total managed spaces; on-street spaces increased to 134,876 (+16.8%), accounting for 65% of the total, and private spaces totalled 24,120 (+15%).
The car park business was not part of Cintra in 2003, and it was only counted for three months in 2004. Between October and December, this division obtained 28.9 million euro in revenues and 10.1 million euro in EBITDA. Full-year figures were 104.9 million euro in revenues and 20.4 million euro in EBIT, i.e. 13.5% and 26% more than in 2003, respectively.
In 2004, Cintra acquired 100% it already owned 42.9% of Estacionamientos Guipuzcoanos (Eguisa), one of Spains leading off-street car park operators, which has close to 4,400 parking spaces under management in Madrid and San Sebastián.
