Key growth drivers: positive traffic performance, improved margins, entry into service of new toll roads in Spain and the US, and expansion in the car park business
EBIT grew by 35.8% to 293.9 million euro
Revenues increased by 43.9% to 696.2 million euro
Growing international footprint: 72% of EBITDA and 64.5% of revenues came from other countries
Cintra's indicative valuation of its assets is 6.950 billion euro at December 2005 (14.15 euro per share)
Highlights in the period: Cintra obtained many contracts in the US, Spain, Italy and Ireland, it recouped 44% of the investment in Chicago Skyway, and obtained favourable rulings in Canada
Cintra, which specialises in bidding for and managing toll roads and car parks, increased EBITDA by 37% in 2005 to 464 million euro, bringing the EBITDA margin to 66.6%. In 2005, 72% of EBITDA came from other countries, especially Canada and (for the first time) the US.
The increase in the main operating and financial aggregates of Cintra is due to positive traffic performance on 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; 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 35.8% to 293.9 million euro and net income totalled 33.8 million euro.
Revenues amounted to 696.2 million euro, i.e. 43.9% more than in 2004.
Foreign revenues increased by 29.5% to 449.1 million euro and accounted for 64.5% of the total. Domestic revenues increased by 80% to 247.1 million euro.
At 2005 year-end, Cintra had a net cash position of 211 million euro (excluding debt without recourse to the concession companies' parent company). The company has capacity to invest in the coming years to finance future growth using cash on hand and net cash flow envisaged in 2006-2010, as well as the possibility of releveraging its projects.
Cintra conducts an indicative valuation of its assets every six months: they totalled 6.950 billion euro in December 2005, i.e. 20.4% more than in June 2005, amounting to 14.15 euro per share (see attached valuation table).
The valuation includes only fourteen concessions that have been operating for some time and represent a sizeable proportion of the portfolio, in addition to the car park business. The valuation was obtained by discounting cash flow to the shareholder at 31 December 2005. Another four concessions are included at book value for the moment, and they will be valued using discounted cash flow as soon as they have a sufficient track record.
Toll roads: traffic growth, recovery of 44% of the investment in Chicago Skyway, and new contracts in Europe and the US
Cintra's toll road division, which currently has 18 concessions plus another 3 pending final contracts, increased revenues by 26.6% to 576.4 million euro and accounted for 81% of total revenues.
In 2005, toll road EBITDA grew by 28.6% to 422.2 million euro and accounts for 91% of total EBITDA. Canadian toll road 407 ETR made a notable contribution to this result (46% of the total), and its EBITDA increased by 23.3% due to improved revenues and containment of operating expenses (especially call centre expenses).
The EBITDA margin in the toll road business, including the results of the parent companies, increased by 110 basis points to 73.3%.
Traffic increased considerably on the main roads in the period:
- Canada- 407 ETR averaged 283,855 daily trips (+4.4%) and vehicle kilometres travelled (VKT) rose 5.3% to 2.064 billion;
- USA- Chicago Skyway attained average daily traffic (ADT) of 48,241 in the period;
- Spain- Ausol I attained average daily traffic (ADT) of 19,973 vehicles, and Ausol II attained 18,286, a 10.4% increase; Autema's traffic rose 7% to 19,586 (ADT); and the R-4 road registered 6,791 (ADT);
- Portugal- Scut Algarve registered a 4% increase in ADT to 18,677 vehicle.
Highlights of the toll road division in the period:
- four new projects- three of them are pending final award
- contract to build and operate the M-203 road in Madrid (78.5 million euro for a 30-year concession), the only toll road real to be awarded in Spain in 2005;
- selected to build and operate the M3 toll road between Clonee and North Kells in Ireland: the investment is expected to be 600 million euro and the concession period runs for 45 years. Also in Ireland, Cintra opened the N4/N6 Motorway, its first toll road in that country, ten months ahead of schedule;
- Cintra moved into Italy after being provisionally awarded the concession to design, build, finance and operate a toll road between the cities of Cremona and Mantua in northern Italy (an investment of 944 million euro for a 55-year concession);
- in January 2006, Cintra was selected as preferred bidder for a 75-year concession for the 253-kilometre Indiana Toll Road. The concession will cost 3.85 billion USD and is the second toll road in operation to be privatised in the United States.
- Cintra recouped 44% (206 million USD) of its initial investment in Chicago Skyway after completing a 1.55 billion USD refinancing deal. 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. The operation also improved shareholder IRR (Internal Rate of Return) by over 150 basis points. In January, the Skyway increased tolls for passenger vehicles by 25% to 2.5 USD and, in June, it implemented electronic tolling; 30% of transactions are now made this way.
Favourable rulings in Canada:
- on 6 January, the Ontario Superior Court ratified that 407 ETR is entitled to raise tolls without needing prior authorisation from the Ontario Government;
- on 16 August, an arbitration tribunal confirmed that 2002 was the baseline year, i.e. from when tolls could be increased freely;
- on 7 November, the Ontario Divisional court ordered the Ontario Registrar of Motor Vehicles to comply with its obligation to deny license plates to vehicles which refuse to pay 407 ETR tolls.
During the year, Cintra made two corporate deals: it increased its stake in Talca-Chillán by 24.18% to 67.6%, and sold 5% of Ausol to Unicaja. Following this transaction, Cintra still owns 80% of Ausol.
Car parks: the number of managed parking spaces grew by 14.8%, strengthening Cintra's leading position
In 2005, Cintra's car park business reported 119.8 million euro in revenues, 41.7 million euro in EBITDA and 26.5 million euro in EBIT. A comparison with 2004, when this area was not part of Cintra, reveals growth of 18.2% in revenues, 43.6% in EBITDA and 30.3% in EBIT.
At 2005 year-end, Cintra managed 238,200 parking spaces, i.e. 14.8% more than in 2004, reinforcing its position as Spain's leading car park operator. By segments, the number of off-street spaces increased by 31.5% and now account for 26.8% of the total; the number of on-street controlled parking spaces increased by 9.5% to 147,671 (62% of the total); and the number of private parking spaces increased by 11.1% to 26.795 (11.2% of the total).
Cintra obtained the contract to operate the car park (14,000 spaces) at Madrid-Barajas airport's new terminal 4 building which, combined with the contract to operate the airport car parks in Granada, Almería, Madrid, Palma de Mallorca and Vigo, reinforce its position as Spain's largest airport car park operator.
Cintra also obtained other parking concessions: four off-street and fourteen private car parks. In 2005, Cintra also obtained on-street car park concessions in Toledo, Pamplona, Fuengirola, San Fernando, Villanueva de la Serena, Chinchón and Barco de Valdeorras, and the car towing service in Palencia.
| Key fugures (figures in million euro) |
2005 |
2004 |
Var (%) |
| Revenues |
696.2 |
483.9 |
43.9 |
| EBITDA |
464.0 |
338.6 |
37.0 |
| EBIT |
293.9 |
216.5 |
35.8 |
| Net income |
33.8 |
-23.1 |
|
| Toll roads traficc |
2005 |
2004 |
Var (%) |
| 407 ETRVKT 407 ETR |
283,8552,064,073 |
271,8951,959,523 |
4.45.3 |
| Chicago Skyway |
48,241 |
|
|
| Ausol I |
19,973 |
19,340 |
3.3 |
| Ausol II |
18,286 |
16,565 |
10.4 |
| Autema |
19,586 |
18,326 |
6.9 |
| R4 |
6,791 |
|
|
| Parking spaces |
238,200 |
207,447 |
14.8 |
Cintra´s internal assets valuation at 31/12/2005
| Assets valued (figures in million euro) |
Value % Cintra |
| 407 ETR, Canada |
3,430 |
| Ausol |
673 |
| Chicago Skyway, USA |
539 |
| Aparcamientos |
442 |
| Autema |
395 |
| R4 (Madrid-Ocaña) |
247 |
| Scut Algarve. Portugal |
131 |
| M 45 |
73 |
| Autopistas chilenas |
525 |
| Subtotal |
6,455 |
| Rest of asset (figures in million euro) |
Value % Cintra |
| Europistas According to internal valuations |
170 |
| Scut Norte Litoral, Portugal Book value |
76 |
| Madrid-Levante Book value |
23 |
| Eurolink (N4-N6) Book value |
0 |
| M 203 Book value |
15 |
| Subtotal |
284 |
|
|
| Parent companies´net cash/debt |
211 |
|
|
| Cintra´s internal assets valuation at december 2005 |
6,950 |
Presentation Cintra results 2005
