Ferrovial posted 340.6 million euros in net profit in 2003

Excluding extraordinary items from the sale of 40% of toll-road subsidiary Cintra and the related provisions in 2002 and 2003, net profit would have risen 14.9% Ferrovial in 2003: - expanded company profile with a greater weighting of less cyclical businesses due to acquisitions in services - for the first time, Infrastructure concessions an Services activities contributed more than 50% of operating profit - 33% of revenues and 42% of operating profit were generated outside Spain Ferrovial´s 2003 net profit amounted to 340.6 million euros, 25.3% less than in 2002 due to the effect of extraordinary items in the sale of 40% of toll-road subsidiary Cintra in 2002. Excluding this transaction and the related provisions in 2002 and 2003, net profit would have risen 14.9% to 296.2 million euros. In 2003, Ferrovial made progress in all business areas, with positive performance in margins and the main operating variables (backlogs and traffic), guaranteeing activity and growth in the coming months: - operating profit (EBIT) rose 26.8% to 614.9 million euros and the EBITDA increased by 36% to 885.8 million euros - revenues grew 19.6% to 6,025.9 million euros, broken down as follows:Construction (-5%), Infrastructure (+16.4%), Real Estate (+17.6%); and Services (+229.3%) - the Construction backlog rose to 6,106 million euros, the Real Estate backlog stood at 1,036 million euros and the Services backlog grew six-fold to 5,177 million euros - gross capital investment in the year amounted to 862 million euros. At 2003 year-end, net debt stood at 590.5 million euros, i.e. 34% leverage. One of the highlights of 2003 was the growth in the Services division due to the acquisition of Cespa (Spain) and Amey (UK), changing the Group profile by increasing both its size and the weighting of less cyclical businesses. Other significant events included the acquisition of Belfast City Airport, the signature of the N4/N6 toll road concession (Ireland), and the increase in the stake in Sydney Airport. Operating profit: 52% from recurring activities Operating profit grew 26.8% to 614.9 million euros, raising the EBIT margin to 10.2% (from 9.6% in 2002). Non-construction activities contributed 73% of the total (52% from the most-recurring or less cyclical businesses, such as Infrastructure concessions and Services). EBITDA rose to 885.8 million euros, i.e. a 36% increase on 2002. Net sales increased by 19.6% on 2002 to 6,025.9 million euros, with progress in nearly all areas: - despite positive performance in the Spanish market, the negative impact of euro appreciation and lower international activity depressed Construction revenues by 5% - traffic and revenue performance, combined with the full consolidation of the M-45 and Ausol II toll roads led to a 16.4% increase in Infrastructure revenues - Real Estate revenues rose 17.6% - Services revenues almost quadrupled in 2003 due to the integration of Cespa and Amey for part of the year. International sales rose 37% to 1,971 million euros, with significant contributions from the UK (14%), Poland (8%), Portugal (4%) and Canada (4%). In 2003, 33% of revenues and 42% of operating profit were generated outside Spain. Gross capital investment amounted to 862 million euros, mainly in Services (670 million euros in total to acquire Amey and Cespa) and Infrastructure (Belfast City Airport). The Real Estate division invested 378 million euros in land for development. Construction: positive performance in the domestic market, and focus on Eastern Europe Despite positive performance in the domestic market, the construction division was negatively affected by exchange rates in the international arena, which depressed sales by 5%. Nevertheless, there was a considerable rise in profitability: the EBIT margin improved by 60 basis points to 4.7%. The Construction backlog grew +3.1% to 6,106 million euros, equivalent to 20 months´ activity. The domestic market accounted for 79%, and 80% of the international backlog (1,263 million euros in total) is concentrated in Europe. Because of the situation in the Polish market, sales at Budimex fell 22.7% (-11.7% in local currency) to 478.3 million euros, although with positive margins. Earnings before taxes (8.4 million euros) were boosted by the extraordinary gains on the sale of Budimex´s headquarters building in Warsaw. The Polish market is expected to recover from 2004 onwards, with projected growth of around 8% in 2005. Ferrovial´s construction strategy will be shaped in the medium term by the strong domestic markey (Spain´s ongoing Infrastructure Plan) and the strong focus on Eastern Europe. Infrastructure: growth engine Revenues in the Infrastructure business, one of the group´s main growth engines, rose 16.4% to 523.6 million euros. In 2003, the adverse exchange rate effect on international infrastructure was offset by strong growth in revenues from Spanish toll roads -Ausol (+43.4%) and Autema (+10.4%)- and the full-year consolidation of the M-45 and Ausol II (Estepona-Guadiaro). The completion of negotiations for a revenue allocation mechanism (MDI) for three of the four toll roads Ferrovial manages in Chile (which basically eliminates traffic risk) enabled the Group to release part of the provision booked in 2002. In 2003, Ferrovial acquired Belfast City Airport, thus increasing its presence in the UK market (where it has managed Bristol airport since 2001); work was begun on the N4/N6 concession, Ireland´s first toll road; and the stake in Sydney airport was increased. In car parks, the number of managed spaces rose to 182,000, with a significant contribution from parking meter revenues in Madrid. In 2004, Ferrovial has obtained a 36-year contract to build, finance, maintain and operate the Ocaña-La Roda, for 525.2 million euros Real Estate: sales guaranteed for the next 15 months There was also considerable growth in the Real Estate division: revenues rose 17.6% in 2003 to 728.7 million euros. The backlog totalled 1,036 million euros, guaranteeing approximately 15 months´ sales. Pre-sales increased by 10% in 2003 to 720 million euros. Services: greater weighting and new business profile for the Group Sales and EBIT nearly quadrupled, boosted by the acquisition of Amey and Cespa; Amey was consolidated from June 2003 (7 months) and Cespa from October (3 months). Sales in 2003 amounted to 1,358 million euros (+299.3%) and the backlog grew six-fold to 5,177 million euros. In 2003, Ferrovial seized two opportunities for growth in the services sector, as a result of which the Group is now larger and has a better business mix, with sizeable exposure to less cyclical activities through recurring revenues and long-term contracts. In April, Ferrovial launched a bid for Amey, a leading UK service company, and it took control one month later. Amey specialises in infrastructure maintenance (urban infrastructure, roads and railways) and facility management. The majority of its concession contracts are financed through Project Finance Initiatives (PFI) and Public Private Partnerships (PPP), a system with good growth prospects in the United Kingdom and in developed countries, in general, as a means of developing projects and services for the public administrations. Ferrovial also acquired 100% of Cespa and 50% of its subsidiary Ecocat in 2003, one of the leading players in the Spanish urban services and municipal and industrial waste management markets. In Telecommunications, Ferrovial maintained its 10% stake in ONO, with a total investment of 94.8 million euros. ONO ended 2003 with net profit of 97 million euros (+150%) on revenues of 358.6 million euros (+42%). In February 2004, ONO acquired 61% of Retecal (a cable operator in Castilla y León), as a result of which Ferrovial´s stake in ONO will be 9.27%.