Cintra increased EBITDA by 39.7% to 347.6 million euro through September

Cintra, which specialises in bidding for and managing toll roads and car parks, increased EBITDA by 39.7% in 9M05 to 347.6 million euro, so the EBITDA margin is 67.3%. A total of 71% of EBITDA came from other countries in 9M05.

The increase in the main operating and financial aggregates of Cintra, which made its stock market debut one year ago today, is due to positive traffic performance in all its toll roads; improved margins; the entry into operation of the R-4 toll road in Spain and Chicago Skyway in the United States; a greater contribution by the M-45 road in Madrid; and the consolidation of the car park business as a result of the ownership restructuring in October 2004 prior to Cintra’s IPO.

EBIT increased by 38.3% to 223.8 million euro and net income totalled 36.7 million euro (+353.4% on 9M04).

Revenues amounted to 516.9 million euro in 9M05, 49.9% more than in 9M04.

Foreign revenues increased by 27.1% to 330 million euro and accounted for 63.8% of the total. Revenues from activities in Spain increased by 119.3% to 186.9 million euro.

Cintra ended the first nine months of 2005 with a net cash position of  209.5 million euro (excluding debt without recourse to the concession parent companies), enabling it to continue with its growth strategy. The company is currently pre-qualified for a dozen toll road projects in Europe and North America.

(Cintra’s 9M05 accounts include the effect of the ownership restructuring in October 2004 on the occasion of the initial public offering. Accordingly, the 9M05 accounts differ from 9M04 in the following respects: inclusion of the car park business; a 13.87% reduction in the stake in Canadian toll road 407 ETR, from 67.10% to 53.23%; and the acquisition of 50% of Inversora de Autopistas de Levante, S.L., which owns 100% of the company with the concession for the toll road between Ocaña and La Roda.)

Toll roads: traffic growth, improved margins and recovery of 44% of Cintra’s investment in Chicago Skyway

Cintra’s toll road division, which currently has 18 concessions, increased revenues by 24.1% to 428.1 million euro.

Toll road EBITDA grew by 27.2% to 316.6 million euro in 9M05. Canadian toll road 407 ETR made a notable contribution to this result (45.3% of the total), and its EBITDA increased by 21.9% due to improved revenues and a reduction in billing expenses.

The EBITDA margin in the toll road business, including parent companies, increased by 180 basis points to 74% due mainly to improvements at 407 ETR (Canada), Ausol II (Estepona-Guadiaro) and Autema (Terrassa-Manresa).

Traffic increased considerably on the main corridors in 9M05:

• Canada – 407 ETR registered 283,065 daily trips (average in the period) (+5.1%) and vehicle kilometres travelled (VKT) rose 6.1% to 1.544 billion;
• USA Chicago Skyway attained average daily traffic (ADT) of 48,161 in the period;
• Spain- Ausol I attained average daily traffic (ADT) of 20,664 vehicles, and Ausol II attained 18,815, a 12.2% increase; Autema’s traffic rose 6.8% to 19,230 (ADT); and the R-4 road registered 6,930 (ADT);
• Portugal – Scut Algarve registered a 4.5% increase in ADT to 19,703 vehicles.

Highlights of the toll road division in the period:

• Cintra recouped 44% (206 million USD) of its initial investment in Chicago Skyway after completing a 1.55 billion USD refinancing deal. The operation has improved shareholder IRR (internal rate of return) by over 150 basis points. The refinancing deal included placing a 1.4 billion USD bond issue in the US, the largest-ever toll road bond issue in that country;
• In Canada, a group of independent arbitrators decided that 2002 met the conditions to be designated as the Baseline Year as defined in the contract between the Province of Ontario and 407 ETR. The establishment of the Baseline Year enables Cintra to increase tolls above the threshold without having to pay congestion payments provided that traffic exceeds certain thresholds;
• Selection by Ireland’s National Roads Authority (NRA) to negotiate the concession for the M3 toll road between Clonee and North Kells; the investment is expected to be 600 million euro and the concession period runs for 45 years;
• Award in July of the concession to build and operate the M-203 toll road in Madrid (investment: 78.5 million euros and the concession period runs for 30 years), the only toll road to be put out to tender in Spain in 2005.

Car parks: the number of managed parking spaces grew by 8.1%, strengthening Cintra’s leading position

In 9M05, Cintra’s car park business reported 88.8 million euro in revenues, 31 million euro in EBITDA and 20.4 million euro in EBIT. A comparison with 9M04, when this area was not part of Cintra, reveals growth of 22.5% in revenues, 34.7% in EBITDA and 42.6% in EBIT.

At the end of 9M05, Cintra managed 215,058 parking spaces, i.e. 8.1% more than in 9M04, reinforcing its position as Spain’s leading car park operator. By segments, the number of off-street spaces totalled 48,508 (22.5% of the total); the number of on-street parking spaces increased by 7.3% to 141,508 (65.8% of the total); and the number of private parking spaces increased by 25.1% to 25,042 (11.7% of the total).

In the period, the company was awarded the concession to build and operate a municipal car park for local residents in Plaza Jado (Bilbao) and on-street parking management contracts in the towns of Fuengirola (Málaga), Torreblanca (Castellón), Laredo (Cantabria) and Oliva (Valencia); it also obtained an increase in the number of managed on-street parking spaces in Valladolid and in Jerez de la Frontera (Cádiz) and an extension of the contract in Alcoy (Alicante).

NOTE: Adoption of International Financial Reporting Standards (IFRS)

The financial information for the two periods being compared was drafted in accordance with the new EU accounting regulations for Listed Consolidated Groups.
Concession companies are awaiting the publication of a final interpretation on the specific method applicable to depreciation and amortisation.
The draft interpretation that has been published allows companies to use the general IFRS method until the final interpretation is issued.
Cintra has presented its 9M05 results under IFRS by adopting the following approaches: non-capitalisation of financial expenses on operating assets, straight-line depreciation of concession assets, and non-application of the IFRIC’s interpretations regarding the two proposed models (intangible asset and financial asset).