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Release 3 q08
1. Obrascon Huarte Lain Brasil S.A.3Q08November 13, 2008
Earnings Release
Page 1 of 24
3Q08
Earnings Release
São Paulo, November 13, 2008.
2. 3Q08 Earnings Release
November 13, 2008
Page 2 of 24
OHL BRASIL ANNOUNCES NET REVENUE OF R$203.6 MILLION (+20.3%), ADJUSTED
EBITDA OF R$144.9 MILLION (+30.1%) AND ADJUSTED EBITDA MARGIN OF R$71.1%
DISCLOSURE AGENDA São Paulo, November 13, 2008 – Obrascon Huarte Lain Brasil S.A. – OHL Brasil
(Bovespa’s Novo Mercado: OHLB3), announces its result for the third quarter of
2008 (3Q08) ended September 30, 2008. The financial and operating information
CONFERENCE CALLS
below is presented on consolidated basis in Brazilian Reais, except when
otherwise indicated, pursuant to the Brazilian Corporation Law.
IN PORTUGUESE HIGHLIGHTS
Friday (11/14/2008)
2:00 p.m. (São Paulo)
11:00 a.m. (US Eastern Time) Traffic Expansion: Consolidated toll-paying traffic for the third quarter of
Phone number: (+55 11) 4688-6301
the year reflected growth of 6.3% in comparison with 3Q07 and 6.4% in relation to
Code: OHL
Replay: Between 11/14 and 11/20 the previous quarter (2Q08), reaching 37.7 million toll-paying vehicles.
Phone number: (+55 11) 4688-6312
Code: 178
Revenue Growth: In 3Q08 OHL Brasil earned gross revenue of R$223.0
million, posting growth of 20.2% vs. 3Q07. This growth is directly related to the
IN ENGLISH
Friday (11/14/2008)
traffic increase (+6.3%) and also to the contractual adjustment of toll tariffs
12:00 p.m. (São Paulo) (+11.53%) implemented on July 1, 2008 in our State Concessionaires. In 9M08 the
9:00 a.m. (US Eastern Time) gross revenue reached R$581.7 million, posting growth of 18.1% in comparison
Phone number: (+1 888) 700-0802 with 9M07.
(Calls from USA)
Phone number: (+1 786) 924-6977
(Calls from other countries)
Phone number: (+55 11) 4688-6301
(Calls from Brazil) Adjusted EBITDA: 3Q08 Adjusted EBITDA amounted to R$144.9 million,
Code: OHL reflecting growth of 30.1% vs. 3Q07. The Adjusted EBITDA margin reached 71.1%,
Replay: Between 11/14 and 11/20
5.3 percentage points higher in relation to the 65.8% posted in 3Q07. In 9M08, the
Phone number: (+55 11) 4688-6312
Code: 663 Adjusted EBITDA reaches the amount of R$345.8 million (+24.6%), with a growth
higher than the net revenue growth (+18.1%), that reflects the good management
in controlling costs and expenses made by the Company.
Net Income: 3Q08 net income amounted to R$30.8 million, up 12.0% vs. the
3Q07 and 62.2% in relation to the previous quarter (2Q08).
Investments: In 3Q08, R$172.1 million were invested in our federal
concessions, referring to the initial road recovery services and the initial
construction of toll plazas, and R$72.3 million on state concessions. In the first 9
months of 2008 R$395.5 million were invested in ours concessionaries.
Bovespa: OHLB3
Indebtedness: The Company closed the quarter with R$1,011.7 million
Bloomberg: OHLB3 BZ gross debt (+R$321.0 million vs. 2Q08) and R$651.8 million net debt (+R$181.2
Thomson Reuters: OHLB3.BR million vs. 2Q08). This growth in our indebtedness is a result of the investments in
our concessionaries. The Leverage Ratio, represented by the net debt/EBITDA
Update on 11/12/2008
Closed price: R$13.17 / share
ratio, is currently at 1.4x.
Market value: R$907.2 million
Changes in accounting practices: Among the main changes brought by
Law 11,638/07, which impact the Company’s Quarterly Financial Information, is the
mandatory booking at present value of significant long-term assets and long-term
liabilities, as “Concession fee obligation” and the “Concession Right”. Previously,
the company booked them with a nominal value.
Investor Relations www.ohlbrasil.com.br ri@ohlbrasil.com.br
Rua Joaquim Floriano, 913, 6º andar - Francisco Leonardo M. da Costa CFO and IRO francisco.leonardo@ohlbrasil.com.br
Itaim Bibi – São Paulo – SP - Alessandro Scotoni Levy IR Manager alessandro@ohlbrasil.com.br
CEP 04534-013 - Vinicius Romboli Narcizo Analyst vinicius@ohlbrasil.com.br
Phone no.: (+55 11) 3074-2409 - Murilo Tarini Analyst murilo@ohlbrasil.com.br
3. 3Q08 Earnings Release
November 13, 2008
Page 3 of 24
OBRASCON HUARTE LAIN BRASIL S.A.
CONSOLIDATED FINANCIAL STATEMENTS
(in R$ Thousand)
% %
3Q08 2Q08 3Q07 3Q08/2Q08 3Q08/3Q07 9M08 9M07 9M/9M
GROSS SERVICE REVENUE 222,988 187,802 185,456 18.7% 20.2% 581,652 492,450 18.1%
Toll Plazas Revenue: 220,941 185,620 183,547 19.0% 20.4% 575,314 486,918 18.2%
Autovias 55,778 47,474 46,619 17.5% 19.6% 146,361 116,839 25.3%
Centrovias 52,015 42,384 40,531 22.7% 28.3% 133,692 110,411 21.1%
Intervias 62,894 52,959 53,819 18.8% 16.9% 163,579 145,999 12.0%
Vianorte 50,254 42,803 42,578 17.4% 18.0% 131,682 113,669 15.8%
Others 2,047 2,182 1,909 -6.2% 7.2% 6,338 5,532 14.6%
DEDUCTIONS FROM SERVICES PROVIDED (19,354) (16,361) (16,146) 18.3% 19.9% (50,565) (43,317) 16.7%
NET SERVICE REVENUE 203,634 171,441 169,310 18.8% 20.3% 531,087 449,133 18.2%
COST AND SERVICES EXPENSES (45,665) (51,768) (46,188) -11.8% -1.1% (148,658) (137,303) 8.3%
Costs of Services (27,504) (29,475) (27,471) -6.7% 0.1% (85,726) (83,043) 3.2%
Variable Charge (6,872) (5,831) (5,533) 17.9% 24.2% (18,022) (15,071) 19.6%
General and Administrative expenses (10,136) (15,743) (11,985) -35.6% -15.4% (42,340) (34,094) 24.2%
Diretctors' compensation (536) (122) - 339.3% n/a (1,033) (2,000) -48.4%
Tax expenses (852) (807) (1,199) 5.6% -28.9% (1,982) (3,095) -36.0%
Other Operational Revenues 235 210 - n/a n/a 445 - n/a
Other Revenues (Expenses) - - - n/a n/a - 84 -100.0%
EBITDA 157,969 119,673 123,122 32.0% 28.3% 382,429 311,914 22.6%
EBITDA Margin 77.6% 69.8% 72.7% 72.0% 69.4%
DEPRECIATIONS AND AMORTIZATIONS (53,221) (50,263) (47,159) 5.9% 12.9% (153,060) (141,401) 8.2%
Investments Depreciations (42,476) (40,266) (37,133) 5.5% 14.4% (122,249) (110,979) 10.2%
Investments Amortizations (3,441) (3,362) (3,279) 2.3% 4.9% (10,125) (9,863) 2.7%
Amortization of Concession Right (Intangible) * (7,304) (6,635) (6,747) 10.1% 8.3% (20,686) (20,559) 0.6%
AMORTIZATION OF NEGATIVE GOODWILL ON INVESTMENTS, NET (2,354) (2,355) (2,356) 0.0% -0.1% (7,064) (7,065) 0.0%
EBIT 102,394 67,055 73,607 52.7% 39.1% 222,305 163,448 36.0%
FINANCIAL RESULTS (54,553) (37,576) (31,797) 45.2% 71.6% (124,678) (76,178) 63.7%
Financial Revenues 6,222 3,668 2,184 69.6% 184.9% 12,080 9,686 24.7%
Financial Expenses (60,696) (41,310) (33,990) 46.9% 78.6% (136,724) (85,917) 59.1%
BNDES/CEF (3,748) (6,804) (8,172) -44.9% -54.1% (18,139) (25,412) -28.6%
Other Financial Expenses (46,446) (12,512) (11,760) 271.2% 294.9% (72,175) (30,538) 136.3%
Monetary Correction of Fixed Concession Charge ** (10,502) (21,994) (14,058) -52.3% -25.3% (46,410) (29,967) 54.9%
Net Exchange Variation (79) 66 9 -219.7% -977.8% (34) 53 -164.2%
NON OPERATING INCOME 434 1,091 641 -60.2% -32.3% 1,844 1,505 22.5%
INCOME BEFORE INCOME AND SOCIAL CONTRIBUTION TAXES 48,275 30,570 42,451 57.9% 13.7% 99,471 88,775 12.0%
INCOME AND SOCIAL CONTRIBUTION TAXES (17,477) (11,581) (14,951) 50.9% 16.9% (40,470) (36,384) 11.2%
Current (15,942) (10,879) (13,714) 46.5% 16.2% (36,923) (34,373) 7.4%
Deferred (1,535) (702) (1,237) 118.7% 24.1% (3,547) (2,011) 76.4%
NET INCOME FOR THE PERIOD 30,798 18,989 27,500 62.2% 12.0% 59,001 52,391 12.6%
% %
Other Informations 3Q08 2Q08 3Q07 9M08 9M07 9M/9M
3Q08/2Q08 3Q08/3Q07
Fixed Concession Charge Paid (Cash Flow) (13,118) (11,764) (11,765) 11.5% 11.5% (36,642) (34,296) 6.8%
Ajusted EBITDA 144,851 107,909 111,357 34.2% 30.1% 345,787 277,618 24.6%
Ajusted EBITDA Margin 71.1% 62.9% 65.8% 65.1% 61.8%
* For an adjustment to the Brazilian Corporate Law, the Concession Right, once classified as “Property and Equipment”, now it is been classified as
“Intangible”. For further information, look at “Change in Accounting Practices” at the Glossary.
** In the periods disclosed the expense “Monetary Correction of Fixed Concession Charge” was adjusted to illustrate the accounting practices
introduced by law nº11,638/07. For further information, look at “Change in Accounting Practices” at the Glossary.
4. 3Q08 Earnings Release
November 13, 2008
Page 4 of 24
OPERATING PERFORMANCE
TRAFFIC AND TOLL TARIFFS
Traffic Expansion: The third quarter of 2008 presented toll paying traffic growth of
6.3% vs. 3Q07, and 6.4% in relation to the previous quarter, reaching 37.7 million
toll paying vehicle-equivalents. Additionally, traffic in 9M08 rose 14.8% over the
same period of the previous year (9M07).
The table below displays the comparative consolidated evolution of traffic and
average toll tariffs for each State Concessionaire:
% 3Q08/ % 3Q08/
Vehicle-Equivalents 3Q08 2Q08 3Q07 9M08 9M07 9M/9M
2Q08 3Q07
Autovias 10,128,720 9,598,493 9,519,481 5.5% 6.4% 28,449,887 19,694,370 44.5%
Centrovias 5,881,298 5,418,802 5,420,378 8.5% 8.5% 16,538,375 15,171,542 9.0%
Intervias 13,881,620 13,041,589 13,213,768 6.4% 5.1% 38,682,299 36,876,050 4.9%
Vianorte 7,821,138 7,382,955 7,311,076 5.9% 7.0% 21,843,198 20,135,566 8.5%
Total: 37,712,776 35,441,839 35,464,703 6.4% 6.3% 105,513,759 91,877,528 14.8%
Average Toll Tariff % 3Q08/ % 3Q08/
3Q08 2Q08 3Q07 9M08 9M07 9M/9M
(in R$/Equiv-Vehicles) 2Q08 3Q07
Autovias 5.51 4.95 4.90 11.3% 12.4% 5.14 5.93 -13.3%
Centrovias 8.84 7.82 7.48 13.0% 18.2% 8.08 7.28 11.0%
Intervias 4.53 4.06 4.07 11.6% 11.3% 4.23 3.96 6.8%
Vianorte 6.43 5.80 5.82 10.9% 10.5% 6.03 5.65 6.7%
Total: 5.86 5.24 5.18 11.8% 13.1% 5.45 5.30 2.8%
Traffic Performance (Thousand Eqv- Vehicles) Autovias Adjustment: In order to better understand the actual impact over the
6.3%
6.3% period’s traffic growth, we present a table with the Autovias Adjustment, in which we
6.4%
6.4%
take into account the average traffic volume of the toll plazas of São Simão and
Santa Rita to calculate traffic fluctuations in these periods. Periods adjusted by the
37,713
35,464 35,442 average were: 3Q07 and 9M08. For further information, see Autovias Adjustment, in
7,311 7,383
7,821 the glossary.
13,214 13,042 13,882
5,420 5,419 5,881
Considering the Autovias Adjustment, traffic in 9M08 grew 8.4% from 9M07.
9,519 9,598 10,129
3Q07 2Q08 3Q08 Vehicle-Equivalents 9M08 9M07 9M/9M
Autovias Centrovias Intervias Vianorte
Autovias (Average SS+SR)* 19,092,092 16,513,268 15.6%
Centrovias 16,538,375 15,171,542 9.0%
Intervias 38,682,299 36,876,050 4.9%
Vianorte 21,843,198 20,135,566 8.5%
Total: 96,155,964 88,696,426 8.4%
Average Toll Tariff
9M08 9M07 9M/9M
(in R$/Equiv-Vehicles)
Autovias (Average SS+SR)* 7.67 7.08 8.3%
Centrovias 8.08 7.28 11.0%
Intervias 4.23 3.96 6.8%
Vianorte 6.03 5.65 6.7%
Total: 5.98 5.49 8.9%
*Average Santa Rita and São Simão
SS = São Simão
SR = Santa Rita
5. 3Q08 Earnings Release
November 13, 2008
Page 5 of 24
Toll Tariff Adjustment: Pursuant to the concession agreement of São Paulo state
concessionaires, on July 1, 2008, toll tariffs were adjusted in 11.53% according to
the accumulated variation of the IGP-M (General Price Index) between June/2007
and May/2008.
It is worth highlighting that in 3Q08 Centrovias concessionaire’s average toll tariff
grew 13% over 2Q08. Such increase above the tariff adjustment is due to the end
of the duplication of Rodovia Engenheiro Paulo Nilo Romano, SP-225 in the stretch
between Itirapina and Dois Córregos. This stretch contains two toll plazas (Dois
Córregos’s toll plaza charges one way, from countryside to capital; and Brotas toll
plaza – also a one way charge, from capital to countryside), which increased toll
tariffs for two-lane roads on April 10 (2Q08), pursuant to the concession agreement
established by ARTESP.
Centrovias -Tariff (R$) Before the Duplication After the Duplication Reajusted Tariff
Dois Córregos Toll Plaza 6.60 9.80 11.00
Brotas Toll Plaza 5.80 8.60 9.60
REVENUES
In 3Q08, OHL Brasil earned gross revenues of R$223.0 million, posting growth of
20.2% vs. 3Q07. This growth is directly related to traffic increase (+6.3%) and also
to the contractual adjustment of toll tariffs (+11.53%) on July 1, 2008 in our State
Concessionaires.
Gross Service Revenue % 3Q08/ % 3Q08/
3Q08 2Q08 3Q07 9M08 9M07 9M/9M
(R$ thousand) 2Q08 3Q07
Autovias 55,778 47,474 46,620 17.5% 19.6% 146,361 116,839 25.3%
Centrovias 52,015 42,384 40,531 22.7% 28.3% 133,692 110,411 21.1%
Intervias 62,894 52,959 53,819 18.8% 16.9% 163,579 145,999 12.0%
Vianorte 50,254 42,803 42,578 17.4% 18.0% 131,682 113,669 15.8%
Total Tolls: 220,941 185,620 183,548 19.0% 20.4% 575,314 486,918 18.2%
Other Revenues 2,047 2,182 1,909 -6.2% 7.2% 6,338 5,532 14.6%
Total: 222,988 187,802 185,457 18.7% 20.2% 581,652 492,450 18.1%
Deduction from Services Provided % 3Q08/ % 3Q08/
3Q08 2Q08 3Q07 9M08 9M07 9M/9M
(R$ thousand) 2Q08 3Q07
Autovias (4,869) (4,158) (4,107) 17.1% 18.6% (12,810) (10,259) 24.9%
Centrovias (4,564) (3,731) (3,560) 22.3% 28.2% (11,755) (10,167) 15.6%
Intervias (5,533) (4,711) (4,748) 17.4% 16.5% (14,468) (12,929) 11.9%
Vianorte (4,388) (3,761) (3,730) 16.7% 17.6% (11,532) (9,961) 15.8%
Total: (19,354) (16,361) (16,145) 18.3% 19.9% (50,565) (43,316) 16.7%
Deduction / Gross Revenue (%) -8.7% -8.7% -8.7% -8.7% -8.8%
Taxation on our gross revenues increased in line with revenue growth, maintaining
the same Deduction/Gross Revenue ratio of approximately 8.7%. Thus, our net
revenues increased 20.3% vs. 3Q07, totaling R$203.6 million.
Net Services Revenue % 3Q08/ % 3Q08/
3Q08 2Q08 3Q07 9M08 9M07 9M/9M
(R$ thousand) 2Q08 3Q07
Autovias 51,307 43,708 42,854 17.4% 19.7% 134,784 107,583 25.3%
Centrovias 47,978 39,145 37,392 22.6% 28.3% 123,449 101,519 21.6%
Intervias 58,186 49,125 49,852 18.4% 16.7% 151,675 135,339 12.1%
Vianorte 46,163 39,463 39,212 17.0% 17.7% 121,179 104,692 15.7%
Total: 203,634 171,441 169,310 18.8% 20.3% 531,087 449,133 18.2%
6. 3Q08 Earnings Release
November 13, 2008
Page 6 of 24
Electronic Toll Collection
Electronic toll collection (AVI System) in toll plazas in 3Q08 accounted for 51.6% of
OHL Brasil’s total toll revenues, vs. 49.7% in 2Q08 and 47.6% in 3Q07.
49.7% 51.6%
47.6%
50.2%
48.6%
46.9%
48.6% 50.4%
46.9%
52.4% 54.2%
50.2%
47.7% 49.4% 52.0%
3Q07 2Q08 3Q08
Autovias Centrovias Intervias Vianorte
EBITDA and ADJUSTED EBITDA
EBITDA
The Company’s EBITDA in 3Q08 was R$158.0 million, a growth of 28.3% vs. 3Q07
and EBITDA Margin was 77.6% vs. 72.7% in 3Q07. In 9M08, the Company’s
EBITDA came to R$382.4 million, +22.6% vs. 9M07.
Adjusted EBITDA
Adjusted EBITDA for 3Q08 reached R$144.9 million, up 30.1% vs. 3Q07. The
Adjusted EBITDA margin reached 71.1%, a growth of 5.3 percentage points when
compared with the 65.8% in 3Q07.
%3Q08/ %3Q08/
EBITDA and Adjusted EBITDA (R$ thousand) 3Q08 2Q08 3Q07 9M08 9M07 9M/9M
2Q08 3Q07
NET SERVICE REVENUE 203,634 171,441 169,310 18.8% 20.3% 531,087 449,133 18.2%
Cost and Service Expenses (45,665) (51,768) (46,188) -11.8% -1.1% (148,658) (137,219) 8.3%
Costs of Services (Ex. Amort. and Depre.) (27,504) (29,475) (27,471) -6.7% 0.1% (85,726) (83,043) 3.2%
Variable Charge (6,872) (5,831) (5,533) 17.9% 24.2% (18,022) (15,071) 19.6%
General, administrative and Other Expenses* (Ex. Amort.) (11,289) (16,462) (13,184) -31.4% -14.4% (44,910) (39,105) 14.8%
EBITDA 157,969 119,673 123,122 32.0% 28.3% 382,429 311,914 22.6%
EBITDA Margin (%) 77.6% 69.8% 72.7% 72.0% 69.4% 3.7%
(-) Fixed Concession Charge Paid (13,118) (11,764) (11,765) 11.5% 11.5% (36,642) (34,296) 6.8%
Autovias (1,381) (1,239) (1,239) 11.5% 11.5% (3,858) (3,611) 6.8%
Centrovias (2,066) (1,854) (1,853) 11.4% 11.5% (5,773) (5,403) 6.8%
Intervias (1,288) (1,152) (1,155) 11.8% 11.5% (3,592) (3,363) 6.8%
Vianorte (8,383) (7,519) (7,518) 11.5% 11.5% (23,419) (21,919) 6.8%
Adjusted EBITDA 144,851 107,909 111,357 34.2% 30.1% 345,787 277,618 24.6%
Adjusted EBITDA Margin (%) 71.1% 62.9% 65.8% 65.1% 61.8%
* Includes G&A expenses, director’s compensation, tax expenses and other operating revenues.
7. 3Q08 Earnings Release
November 13, 2008
Page 7 of 24
The chart below shows our Adjusted EBITDA and Adjusted EBITDA Margin since
1Q07. We continue to see growth in comparison to the prior years’ quarters.
Ajusted EBTDA (R$ millions)
71.1%
65.8%
62.6% 62.9%
60.8% 59.6%
58.0%
144.9
111.4 107.9
104.4
93.0
86.4
79.8
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
Adjusted EBITDA Adjusted EBITDA Margin (%)
Fixed Concession Charge Paid to the Granting Authority
In 3Q08 we paid the Granting Authority R$13.1 million in respect of Fixed
Concession Charges. Thus, on September 30, 2008, the number of payments still
owed on this account was as follows:
Concessionaires Short Term Long Term Total
Autovias 12 107 119
Centrovias 12 104 116
Intervias 12 124 136
Vianorte 12 101 113
FINANCIAL RESULTS
Our Net Financial Expenses rose 45.2% or R$17 million in 3Q08 vs. 2Q08, totaling
R$54.6 million. The table below shows the breakdown of our financial result.
%3Q08/ %3Q08/
Financial Result (R$ thousand) 3Q08 2Q08 3Q07 9M08 9M07 9M/9M
2Q08 3Q07
Financial Revenues 6,222 3,668 2,184 69.6% 184.9% 12,080 9,686 24.7%
Financial Expenses (60,696) (41,310) (33,990) 46.9% 78.6% (136,724) (85,917) 59.1%
BNDES/CEF (3,748) (6,804) (8,172) -44.9% -54.1% (18,139) (25,412) -28.6%
Other Financial Expenses (46,446) (12,512) (11,760) 271.2% 294.9% (72,175) (30,538) 136.3%
Monetary Correction of Fixed Concession Charge* (10,502) (21,994) (14,058) -52.3% -25.3% (46,410) (29,967) 54.9%
Net Exchange Variation (79) 66 9 -219.7% -977.8% (34) 53 -164.2%
Net Financial Result (54,553) (37,576) (31,797) 45.2% 71.6% (124,678) (76,178) 63.7%
% Net Services Revenue (26.8%) (21.9%) (18.8%) (23.5%) (17.0%)
* In the periods disclosed the expense “Monetary Correction of Fixed Concession Charge” was adjusted to illustrate the accounting practices
introduced by law nº11,638. For further information, look at “Change in Accounting Practices” at the Glossary.
8. 3Q08 Earnings Release
November 13, 2008
Page 8 of 24
The growth of the Net Financial Result in the 3Q08 occurred mainly due to the
following factors:
(i) R$3.1 million reduction in financial expenses with BNDES/CEF, due to the
amortization of R$147.0 million of long-term loans on July 18, 2008;
(ii) R$33.9 million increase in “Other Financial Expenses”, due to a loan of
R$670 million taken out on July 18, 2008, to finance investments and IOF
expenses deriving from loan operations performed by the Company in the
quarter.
(iii) R$11.5 million reduction vs. 2Q08 in expenses related to “Monetary
Correction of Fixed Concession Charge”, due to the smaller variation of the
accumulated IGP-M in 3Q08 (+1.5%) vs. accumulated in 2Q08 (+4.3%).
The chart below shows the quarterly IGP-M index from 3Q07 through 3Q08.
Quarterly-IGP-M
4.3%
3.5%
2.6% 2.4%
1.54%
3Q07 4Q07 1Q08 2Q08 3T08
NET INCOME
The Company’s Net Income for 3Q08 was R$30.8 million, an increase of 12.0% vs.
3Q07.
Although higher financial expenses negatively affected the result, as mentioned
above, traffic growth in relation to 3Q07 (+6.3%), the tariff adjustment (+11.53%),
and the reduction in costs and expenses vs. 2Q08 were the main drivers of higher
profits in the quarter.
Net Income (R$ million)
+12.0%
+12.0% +12.6%
+12.6%
+62.2%
+62.2% 59.0
52.4
30.8
27.5
19.0
3Q07 2Q08 3Q08 9M07 9M08
9. 3Q08 Earnings Release
November 13, 2008
Page 9 of 24
INDEBTEDNESS
The Company`s net debt in the period increased by 38.5% or R$181.2 million vs.
2Q08, reaching R$651.8 million in 3Q08.
%3Q08/ %3Q08/
Net Debt (R$ thousand) 3Q08 2Q08 3Q07
2Q08 3Q07
Gross Debt 1,011,661 690,647 517,052 46.5% 95.7%
Short Term 79,059 335,268 109,998 -76.4% -28.1%
Long Term 932,602 355,379 407,054 162.4% 129.1%
Cash and Banks 26,403 9,755 11,518 170.7% 129.2%
Short Term Investemts 326,064 194,005 32,942 68.1% 889.8%
Long Term Investmensts 7,392 16,310 17,008 -54.7% -56.5%
Total - Cash, Bank and Investments 359,859 220,070 61,468 63.5% 485.4%
Net Debt 651,802 470,577 455,584 38.5% 43.1%
The increase of our Net Debt in 3Q08 vs. 2Q08 is a result of the growth of our
indebtedness connected to the development of programs of investment in our
concessionaires.
The following graph shows our Leverage Ratio, as measured by the ratio Net
Debt/Adjusted EBITDA (last 12 months), at 1.4x.
Leverage Ratio and Net Debt (R$ million)t (R$ million)
1.5x 1.5x
1.4x 1.4x
1.3x
1.1x 1.1x 1.1x
0.8x
652
429 467 456 429 465
416 416
204
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
Net Debt Net Debt/ Adjusted EBITDA
Below, we show the breakdown of our debt indexers:
%3Q08/ %3Q08/
Indebtedness (R$ thousand) 3Q08 2Q08 3Q07
2Q08 3Q07
Indexes:
TJLP 112,389 258,759 297,129 -56.6% -62.2%
CDI 895,006 427,669 213,992 109.3% 318.2%
Others 4,266 4,219 5,931 1.1% -28.1%
Total 1,011,661 690,647 517,052 46.5% 95.7%
10. 3Q08 Earnings Release
November 13, 2008
Page 10 of 24
The chart below shows the evolution in the Company’s gross debt:
InIndebtness (R$ thousand)de(R$ million)
1,012
691 690
590 585
537 517 510
355 933
375
327 250
246
262
407 394
76
263 335 291 316 335
186 116
110 79
3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
Short Term Long Term
Next, we present the Company`s current debt amortization schedule.
Debt Amortization Schedule (R$ million)
884.0
79.1
8.9 18.2 15.0 6.5
Oct/08 to Sep/09 to 2010 2011 2012 2013
Sep/09 Dec/09
BNDES (Federal Concessions): On November 10, 2008, BNDES approved the
framing related to the financing of 70% of the CAPEX of the first 6 years of federal
concessions. We believe that the closing of this long term financing operation will
occur approximately in 12 months.
As the first phase of the long term financing, the company is negotiating with
BNDES a “bridge loan”, which the first disbursement may occur in 1Q09, to
guarantee the development of investments in the federal concessions. We estimate
that the maturity of this “bridge loan” should be in 18 months and the cost close to
TJLP + 3.5% p.y..
11. 3Q08 Earnings Release
November 13, 2008
Page 11 of 24
INVESTMENTS
Our investments in 3Q08 amounted to R$249,9 million. The table below
demonstrates our investments on the 3Q08 and 9M08:
Capex Cash Flow -
3Q08 Real % 9M08 Real % 2008(E) %
(R$ Thousand)
Autovias 18,383 7.4% 39,470 10.0% 43,488 5.6%
Centrovias 19,283 7.7% 47,888 12.1% 55,004 7.1%
Intervias 14,012 5.6% 27,538 7.0% 41,360 5.4%
Vianorte 20,659 8.3% 38,977 9.9% 70,148 9.1%
Federal 172,085 68.9% 227,120 57.4% 560,321 72.7%
Other * 5,477 2.2% 14,491 3.7% - -
Total Concessionaires 249,899 100.0% 395,484 100.0% 770,321 100.0%
*Other investments and consolidated results
State Concessions: A total of R$72.3 million was invested in our state
concessionaires. In the 9M08, the company invested 73.3% of the total estimated
to 2008. Follows, chart with the amount invested and the estimate of investment to
the next 5 years.
Completed and Estimated Investments -
State Concessions (R$ Million)
250
210
188
118
70
50 47
2006 2007 2008E 2009E 2010E 2011E 2012E
Federal Concessions: A total of R$227.1 million were invested in federal
concessionaires during the 9M08 on initial road recovery services (such as: hole
filling, sign improvements and weed cutting), and in the initial construction works of
toll plazas.
Due to the delay in the beginning of construction works of toll plazas, resulting from
the delay in obtaining the licenses and authorizations, we revised our investment
(cash flow) timeframe for the next six years.
Estim ated Investm ents - Federal Concessions - Base July/2008
(R$ m illion)
1,235 1,233
1,070
560 531
129
2008 2009 2010 2011 2012 2013
12. 3Q08 Earnings Release
November 13, 2008
Page 12 of 24
The following table shows the status of construction works of each toll plaza.
Autopista Planalto Sul
Toll Plaza Location Status
P1 BR 116/ Km 134 - PR
P2 BR 116/ Km 204 - PR
P3 BR 116/ Km 081 - SC
P4 BR 116/ Km 152 - SC
P5 BR 116/ Km 233 - SC
Autopista Fluminense
Toll Plaza Location Status
P1 BR 101/ Km 040 - RJ
P2 BR 101/ Km 123 - RJ
P3 BR 101/ Km 192 - RJ
P4 BR 101/ Km 252 - RJ
P5 BR 101/ Km 299 - RJ
Autopista Fernão Dias
Toll Plaza Location Status
P1 BR 381/ Km 065 - SP
P2 BR 381/ Km 007 - SP
P3 BR 381/ Km 902 - MG
P4 BR 381/ Km 804 - MG
P5 BR 381/ Km 733 - MG
P6 BR 381/ Km 659 - MG
P7 BR 381/ Km 596 - MG
P8 BR 381/ Km 546 - MG
Autopista Régis Bittencourt
Toll Plaza Location Status
P1 BR 116/ Km 298 - SP
P2 BR 116/ Km 370 - SP
P3 BR 116/ Km 426 - SP
P4 BR 116/ Km 485 - SP
P5 BR 116/ Km 542 - SP
P6 BR 116/ Km 057 - PR
Autopista Litoral Sul
Toll Plaza Location Status
P1 BR 376/ Km 637 - PR
P2 BR 101/ Km 001 - SC
P3 BR 101/ Km 079 - SC
P4 BR 101/ Km 159 - SC
P5 BR 101/ Km 220 - SC
-Construction Concluded
-Ending Construction
-Under Construction
-Beginning Construction
-Awaiting Installation License (Environmental)
-Awaiting Eminent Domain Process
-Systems and Equipments Installation Concluded
13. 3Q08 Earnings Release
November 13, 2008
Page 13 of 24
Although the initial forecast was to open the toll plazas six months after the signing
of the agreement (February 14, 2008), there was a delay in the beginning of the toll
plazas’ construction, caused by the delay in obtaining the permits and approvals.
Out of the 29 toll plazas on 5 federal lots, only one did not start the construction, P5
plaza; on Autopista Régis Bittencourt. To begin this construction, the company
awaits installation license, since the plaza is located in the Rio do Turvo State Park
(Parque Estadual do Rio do Turvo which is under responsibility of the Forestry
Production of the State of São Paulo (Fundação Florestal – SP).
Other two toll plazas, which are already under construction, awaiting the eminent
domain process to be concluded. The toll plazas are: P1 plaza; on Autopista
Fernão Dias, P4 plaza; on Autopista Litoral Sul.
Toll charging should begin in different periods for each concessionaire.
(i) For Autopistas Fluminense and Planalto Sul, toll charging should begin
between late 2008 and early 2009.
(ii) Autopista Litoral Sul and Fernão Dias expect to begin collecting toll tariffs
in late 1Q09.
(iii) Regarding Autopista Régis Bittencourt, we are still waiting for a definition
by Ibama regarding the granting of installation licenses.
User services such as roadside assistance, emergency medical assistance, toll
free phone numbers, traffic inspection vehicles and fire fighting and animal
apprehension services were made available on August 15, 2008.
Any facts or delays in investments changing the contractual conditions will be
cause for economic rebalancing of the contracts in the future.
14. 3Q08 Earnings Release
November 13, 2008
Page 14 of 24
PERSONNEL
We present below the structure and evolution of OHL Brasil’s and its subsidiaries’
personnel, in light of the hiring program initiated for road recovery and
administrative staffing of the federal concessions.
Personnel September 30, 2008 June 30, 2008 Change
OHL 72 60 12
Autovias 189 177 12
Centrovias 177 174 3
Intervias 577 574 3
Vianorte 264 262 2
Litoral Sul 97 27 70
Planalto Sul 39 33 6
Fluminense 124 39 85
Fernão Dias 225 46 179
Régis Bittencourt 138 64 74
Paulista 236 194 42
Latina 1017 674 343
Total 3,155 2,324 831
STOCK MARKET
During 3Q08, the shares of OHL Brasil posted variation of -22.0%, vs. -22.5% of
the IBOVESPA Index.
Base 100 (12/28/2007)
Lehman Brothers'
130 Investment Grade
Bankruptcy
120
110
100
90
78.0
80 77.5
70
Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08
OHLB3 IBOV
Daily Average 3Q08 2Q08 3Q07 3Q08/2Q08 3Q08/3Q07
Nº of Trades 169 178 173 -4.8% -2.3%
Nº of Shares Traded 194,778 240,716 212,586 -19.1% -8.4%
Volume (R$ Milion) 4.82 5.70 7.48 -15.4% -35.6%
15. 3Q08 Earnings Release
November 13, 2008
Page 15 of 24
SHAREHOLDES STRUCTURE
The table below displays the Company’s ownership structure as of 09/30/2008:
Shareholders # Shares %
Partícipes em Brasil S.L. 41,333,326 60.0%
Credit Suisse Hedging Griffo 7,291,600 10.6%
Kendall Develops S.L. 3,444,445 5.0%
Conselho Administrativo 7 0.0%
Others 16,819,510 24.4%
Total 68,888,888 100.0%
ORGANIZATIONAL STRUCTURE
16. 3Q08 Earnings Release
November 13, 2008
Page 16 of 24
CORPORATE PROFILE
OHL Brasil S.A. is the largest Company in toll road concessions sector in Brazil in
terms of kilometers under management, with 3,226 km in operation. Through its
nine concessionaires, OHL Brasil manages roads in the states of São Paulo, Minas
Gerais, Rio de Janeiro, Santa Catarina and Paraná. It currently holds 100% of the
capital of the state concessions Autovias, Centrovias, Intervias and Vianorte; and
the federal concessions Autopista Fernão Dias, Autopista Regis Bittencourt,
Autopista Litoral Sul, Autopista Planalto Sul and Autopista Fluminense.
OHL Brasil is a Brazilian company subsidiary of OHL Concesiones, a Spanish
company that operates in the infrastructure area, including project selection, public
contract bidding, financing, construction and operation. OHL Concesiones, besides
been the main shareholder of OHL Brasil, currently manages also several road
concessionaires in Spain, Chile, Mexico and Argentina. OHL Concesiones is a
wholly-owned subsidiary of the Spanish group OHL, one of the leaders in the
construction and concession sectors in Spain.
For further information, visit:
www.ohlbrasil.com.br
PORTFOLIO OF CONCESSION ASSETS
Below, we present the main information concerning our portfolio of concessions:
Fixed Concession Concession
Concessionaires Km Toll Plazas Contract Index
Charge Payment Maturity Maturity
State Concessions
Autovias 316.6 5 aug/2018 aug/2018 IGP-M
Centrovias 218.2 5 jun/2018 jun/2019 IGP-M
Intervias 375.7 9 feb/2020 jan/2028 IGP-M
Vianorte 236.6 4 mar/2018 mar/2018 IGP-M
Federal Concessions
Autopista Litoral Sul 382.3 5 n.a. feb/2033 IPCA
Autopista Planalto Sul 412.7 5 n.a. feb/2033 IPCA
Autopista Fluminense 320.1 5 n.a. feb/2033 IPCA
Autopista Fernão Dias 562.1 8 n.a. feb/2033 IPCA
Autopista Regis Bittencourt 401.6 6 n.a. feb/2033 IPCA
This release contains forward-looking statements relating to the prospects of the business, estimates for
operating and financial results, and those related to growth prospects of OHL Brasil. These are merely
projections and, as such, are based exclusively on the expectations of OHL Brasil’s management
concerning the future of the business and its continued Access to capital to fund the Company’s
business plan. Such forward-looking statements depend substantially on changes in market conditions,
government regulations, competitive pressures, and the performance of the Brazilian economy and the
industry, and are, therefore, subject to change without prior notice.
17. 3Q08 Earnings Release
November 13, 2008
Page 17 of 24
ANNEX 1 FINANCIAL STATEMENTS OF INCOME
OBRASCON HUARTE LAIN BRASIL S.A.
CONSOLIDATED FINANCIAL STATEMENTS
(in R$ Thousand)
% %
3Q08 2Q08 3Q07 3Q08/2Q08 3Q08/3Q07 9M08 9M07 9M/9M
GROSS SERVICE REVENUE 222,988 187,802 185,456 18.7% 20.2% 581,652 492,450 18.1%
Toll Plazas Revenue: 220,941 185,620 183,547 19.0% 20.4% 575,314 486,918 18.2%
Autovias 55,778 47,474 46,619 17.5% 19.6% 146,361 116,839 25.3%
Centrovias 52,015 42,384 40,531 22.7% 28.3% 133,692 110,411 21.1%
Intervias 62,894 52,959 53,819 18.8% 16.9% 163,579 145,999 12.0%
Vianorte 50,254 42,803 42,578 17.4% 18.0% 131,682 113,669 15.8%
Others 2,047 2,182 1,909 -6.2% 7.2% 6,338 5,532 14.6%
DEDUCTIONS FROM SERVICES PROVIDED (19,354) (16,361) (16,146) 18.3% 19.9% (50,565) (43,317) 16.7%
NET SERVICE REVENUE 203,634 171,441 169,310 18.8% 20.3% 531,087 449,133 18.2%
COST OF SERVICES (84,156) (82,207) (76,884) 2.4% 9.5% (246,683) (229,652) 7.4%
Costs of Services (27,504) (29,475) (27,471) -6.7% 0.1% (85,726) (83,043) 3.2%
Variable Charge (6,872) (5,831) (5,533) 17.9% 24.2% (18,022) (15,071) 19.6%
Investments Depreciation (42,476) (40,266) (37,133) 5.5% 14.4% (122,249) (110,979) 10.2%
Amortization of Concession Right (Intangible) (7,304) (6,635) (6,747) 10.1% 8.3% (20,686) (20,559) 0.6%
Other Revenues (Expenses) - - - n/a n/a - 84 n/a
GROSS PROFIT 119,478 89,234 92,426 33.9% 29.3% 284,404 219,565 29.5%
OPERATING (EXPENSES) INCOME (14,730) (19,824) (16,463) -25.7% -10.5% (55,035) (49,052) 12.2%
General and administrative (10,136) (15,743) (11,985) -35.6% -15.4% (42,340) (34,094) 24.2%
Diretctors' compensation (536) (122) - 339.3% n/a (1,033) (2,000) -48.4%
Investments Amortization (3,441) (3,362) (3,279) 2.3% 4.9% (10,125) (9,863) 2.7%
Tax (852) (807) (1,199) 5.6% -28.9% (1,982) (3,095) -36.0%
Other Operational Revenues 235 210 - n/a n/a 445 - n/a
AMORTIZATION OF NEGATIVE GOODWILL ON INVESTMENTS, NET (2,354) (2,355) (2,356) 0.0% -0.1% (7,064) (7,065) 0.0%
FINANCIAL INCOME (EXPENSES) NET (54,553) (37,576) (31,797) 45.2% 71.6% (124,678) (76,178) 63.7%
INCOME FROM OPERATIONS 47,841 29,479 41,810 62.3% 14.4% 97,627 87,270 11.9%
NON OPERATING INCOME 434 1,091 641 -60.2% -32.3% 1,844 1,505 22.5%
INCOME BEFORE INCOME AND SOCIAL CONTRIBUTION TAXES 48,275 30,570 42,451 57.9% 13.7% 99,471 88,775 12.0%
INCOME AND SOCIAL CONTRIBUTION TAXES (17,477) (11,581) (14,951) 50.9% 16.9% (40,470) (36,384) 11.2%
Current (15,942) (10,879) (13,714) 46.5% 16.2% (36,923) (34,373) 7.4%
Deferred (1,535) (702) (1,237) 118.7% 24.1% (3,547) (2,011) 76.4%
NET INCOME FOR THE PERIOD 30,798 18,989 27,500 62.2% 12.0% 59,001 52,391 12.6%
18. 3Q08 Earnings Release
November 13, 2008
Page 18 of 24
ANNEX 2 BALANCE SHEET
OBRASCON HUARTE LAIN BRASIL S.A
BALANCE SHEET AS OF SEPTEMBER 30.2008, JULY 30.2008 AND SEPTEMBER 30.2007
(in R$ Thousand)
Consolidated
3Q08 2Q08 3Q07
ASSETS
CURRENT ASSETS
Cash and banks 26,403 9,755 11,518
Temporary cash investments 326,064 194,005 32,942
Trade accounts receivable 44,988 37,993 35,388
Intercompany receivables 87 87 87
Inventories 3,453 1,822 1,223
Prepaid expenses 9,119 7,903 5,773
Deferred income and social contribution taxes 5,104 5,241 5,386
Recoverable taxes 3,429 3,929 9,594
Advances for new projects 1,938 1,554 4,711
Other receivables 8,364 4,313 348
Total Current Assets 428,949 266,602 106,970
NONCURRENT ASSETS
Long-term assets 28,863 40,526 31,846
Restricted cash investments 7,392 16,310 17,008
Recoverable Taxes 10,948 10,433 -
Deferred income and social contribution taxes 9,079 12,225 13,212
Prepaid expenses 14 130 217
Escrow deposits 1,421 1,428 1,409
Other receivables 9 - -
Investments 77,968 80,322 87,386
Property and equipament 1,510,670 1,277,236 1,184,716
Intangible 300,732 310,796 337,686
Deferred charges 64,345 27,624 -
Total noncurrent assets 1,982,578 1,736,504 1,641,634
TOTAL ASSETS 2,411,527 2,003,106 1,748,604
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Loans and financing 79,059 335,268 109,998
Trade accounts payable 91,160 50,946 36,972
Payroll charges 21,224 15,123 12,187
Taxes payable 32,532 23,551 20,264
Deferred income and social contribution taxes 724 1,020 814
Other payable 7,814 8,102 5,458
Intercompany payables 826 755 804
Collateral for agreements 18,399 12,111 6,511
Concession fee obligation 53,861 53,085 48,088
Sundry provisions - - 5,076
Dividends payable - - 33
Total current liabilities 305,599 499,961 246,205
NONCURRENT LIABILITIES
Loans and financing 932,602 355,379 407,054
Trade accounts payable - - 32
Concession fee obligation 365,756 367,334 355,043
Accrual for Contingecies 4,923 7,550 -
Deferred revenue 751 1,073 684
Deferred income and social contribution taxes 9,354 10,065 8,816
Other payables 7 7 11
Total noncurrent liabilities 1,313,393 741,408 771,640
SHAREHOLDRS' EQUITY
Capital 549,083 549,083 549,083
Legal Reserves 12,554 12,554 8,810
Profit reserves 194,168 194,168 140,961
Retained Earnings 59,001 28,203 54,176
Adjustment to shareholders' equity - exchange variation on capital (22,271) (22,271) (22,271)
Total shareholders' equity 792,535 761,737 730,759
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 2,411,527 2,003,106 1,748,604
19. 3Q08 Earnings Release
November 13, 2008
Page 19 of 24
ANNEX 3 CASH FLOW STATEMENTS
OBRASCON HUARTE LAIN BRASIL S.A
STATEMENTS OF CASH FLOWS FOR SEPTEMBER 30, 2008
AND SEPTEMBER 30, 2007 (in R$ thousands)
9M08 9M07 9M/9M
NET NCOME 59,001 52,391 12.6%
Adjusments to reconcile net income to net cash provided by operating activities:
Depreciation amortization 153,060 141,401 8.2%
Amortization of goodwill (negative goodwill) on investments 7,064 7,065 0.0%
Net book value of property and equipment written off 4,865 1,445 236.7%
Deferred income and social contribution taxes 3,547 2,011 76.4%
Interest (income) expenses, net 104,292 76,889 35.6%
Reversal of deferred revenue 360 311 15.8%
Accrual for contingencies (1,072) 355 -402.0%
Decrease (increase) in assets:
Trade accounts receivable (14,622) (6,027) 142.6%
Inventories (1,974) (9) n.a.
Prepaid expenses (5,224) (2,213) 136.1%
Recoverable taxes (3,487) (3,523) -1.0%
Advance for new projects 4,901 - n.a.
Other receivables (5,658) (1,836) 208.2%
Increase (decrease) in liabilities:
Trade accounts payable 6,072 13,230 -54.1%
Payroll taxes 10,161 3,592 182.9%
Taxes payable 14,667 3,678 298.8%
Collateral for agreements 12,728 - n.a.
Other payables 1,573 4,096 -61.6%
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES 350,254 292,856 19.6%
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in restricted deposits (835) (1,257) -33.6%
Redemption of deposits 11,518 7,472 54.1%
Acquisition of property and equipment (395,484) (196,448) 101.3%
Increase in deferred charges (64,345) - n.a.
Increase in intangible (1,255) - n.a.
NET CASH USED IN INVESTING ACTIVITIES (450,401) (190,233) 136.8%
Borrowings 1,001,813 387,246 158.7%
Repayments (559,258) (508,792) 9.9%
Payment of concession fee obligations (36,642) (34,076) 7.5%
Payment of Dividends (17,738) (41,815) -57.6%
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 388,175 (197,437) -296.6%
DECREASE (INCREASE) IN CASH, NET 288,028 (94,814) -403.8%
CASH AT BEGINNING OF YEAR 64,439 139,274 -53.7%
CASH AT END OF THE PERIOD 352,467 44,460 692.8%
SUPPLEMENTAL INFORMATION
Cash paid in the year:
Interest paid 45,365 39,452 15.0%
Income tax 31,300 31,735 -1.4%
20. 3Q08 Earnings Release
November 13, 2008
Page 20 of 24
ANNEX 4 LOAN AND FINANCING
OBRASCON HUARTE LAIN BRASIL S.A.
LOANS AND FINANCING (CONSOLIDATED) - SEPTEMBER, 30 2008
(R$ Thousand)
Creditors Charges Final Maturity Current Noncurrent
AUTOVIAS
BNDES TJLP + 5% per year April-11 1,292 2,023
Unibanco (BNDES) TJLP + 3,95% per year May-12 1,772 4,659
Banco Itaú BBA CDI + 2,3% per year June-09 2,706 -
Banco Fibra 101,8% CDI June-09 24,402 -
Banco Votorantim (BNDES) TJLP + 3,3% per year September-12 676 1,997
Banco Itaú BBA (BNDES) TJLP + 3,45% per year June -12 331 896
Banco Votoratim - Finame (BNDES) TJLP + 3,3% per year February-13 29 156
Banco Unibanco CDI + 0,083% per month November-10 17 15,500
Banco Itaú BBA CDI + 0,083% per month November-10 17 15,500
Banco Bradesco CDI + 0,083% per month November-10 180 15,500
Banco Citibank CDI + 0,083% per month November-10 17 15,500
Banco Santander – “CCB” CDI + 1,037% per year January-10 986 57,500
Banco Bradesco – “CCB” CDI + 1,037% per year January-10 986 57,500
Banco do Brasil – “CCB” CDI + 1,037% per year January-10 1,199 70,000
Banco Dibens - “leasing” 100% CDI January-09 35 -
Banco Dibens - “leasing” 100% CDI Novembre-09 96 16
Banco Dibens - “leasing” 100% CDI February-11 62 86
Total 34,812 264,833
CENTROVIAS
BNDES - “Automático Itaú” TJLP + 3,95% per year June -12 1,665 4,650
BNDES - “Automático Unibanco” TJLP + 3,30% per year October-12 716 2,636
Banco Bradesco – “CCB” CDI Médio +1,037 per year January-10 2,188 90,000
Banco Santander – “CCB” CDI Médio +1,037 per year January-10 2,188 90,000
Banco do Brasil – “CCB” CDI Médio +1,037 per year January-10 1,702 70,000
Total 8,459 257,286
INTERVIAS
Banco Unibanco CDI + 1% per year November-10 13 24,500
Banco Itaú BBA CDI + 1% per year November-10 13 24,500
Banco Bradesco CDI + 1% per year November-10 13 24,500
Banco Citibank CDI + 1% per year November-10 13 24,500
Banco Votorantim CDI + 1% per year November-10 6 12,000
Banco Itaú “Leasback” CDI Over Cetip January-10 2,967 2,225
Banco Bradesco – “CCB” CDI +1,037 per year January-10 949 77,500
Banco Santander – “CCB” CDI +1,037 per year January-10 949 77,500
Banco do Brasil – “CCB” CDI +1,037 per year January-10 981 80,000
Outros CDI + 2% per year May-11 53 -
Total 5,957 347,225
VIANORTE
BNDES TJLP + 4,5% a 7,5% per year August-13 24,433 59,245
Banco ABC - Finame TJLP + 6,3% per year July-10 483 402
Banco Unibanco - “Prosoft” TJLP + 2,18% per year April-10 516 299
Banco Unibanco – Finame TJLP + 3,48% per year April-12 393 1,014
Banco Bradesco - capital de giro CDI + 1,5% per year February-09 3,246 -
Banco Votorantim TJLP + 3,3% per year February-13 46 267
Banespa - “leasing” 1,52% a 1,87% per month April-10 246 -
Banco Dibens - “leasing” CDI + 1,82% per year February-10 156 154
Total 29,519 61,381
LATINA
Banco Itaú BBA 11,5% per year June-2011 149 247
Unibanco TJLP + 1,75% per year May-13 163 1,434
Total 312 1,681
AUTOPISTA PLANALTO SUL
Banco Votorantim – Finame TJLP + 2,60% per year June-13 - 196
Total - 196
Total Amount 79,059 932,602
21. 3Q08 Earnings Release
November 13, 2008
Page 21 of 24
ANNEX 5 DEMONSTRATION OF AJUSTMENTS (CHANGE IN ACCOUNTING PRACTICES)
TABLE 1 STATEMENTS OF INCOME
OBRASCON HUARTE LAIN BRASIL S.A.
ADJUSTMENTS IN THE STATEMENT OF INCOME
(R$ Thousandl)
3Q07 -
3Q08 2Q08 3Q07 Adjustment Unadjusted
NET SERVICE REVENUE 203,634 171,441 169,310 - 169,310
COST OF SERVICES (84,156) (82,207) (76,884) (2,693) (79,577)
Costs of Services (27,504) (29,475) (27,472) - (27,472)
Variable Charge (6,872) (5,831) (5,533) - (5,533)
Investments Depreciation (42,476) (40,266) (37,133) - (37,133)
Amortization of Concession Right (Intangible) (7,304) (6,635) (6,746) (2,693) (9,439)
Other Revenues - - - - -
GROSS PROFIT 119,478 89,234 92,426 (2,693) 89,733
OPERATING (EXPENSES) INCOME (14,730) (19,824) (16,463) - (16,463)
- -
Amortization of negative goodwill (goodwill) on investments (2,354) (2,355) (2,356) - (2,356)
- -
Financial income (expenses), net (54,553) (37,576) (31,797) 2,019 (29,778)
INCOME FROM OPERATIONS 47,841 29,479 41,810 (674) 41,136
NON OPERATING INCOME 434 1,091 641 - 641
INCOME BEFORE INCOME AND SOCIAL CONTRIBUTION TAXE 48,275 30,570 42,451 (674) 41,777
INCOME AND SOCIAL CONTRIBUTION TAXES (17,477) (11,581) (14,951) 229 (14,722)
Current (15,942) (10,879) (13,714) - (13,714)
Deferred (1,535) (702) (1,237) 229 (1,008)
NET INCOME FOR THE PERIOD 30,798 18,989 27,500 (445) 27,055
9M07 -
9M08 9M07 Adjustment Unadjusted
NET SERVICE REVENUE 531.087 449.133 - 449.133
COST OF SERVICES (246.683) (229.652) (8.242) (237.894)
Costs of Services (85.726) (83.044) - (83.044)
Variable Charge (18.022) (15.071) - (15.071)
Investments Depreciation (122.249) (110.979) - (110.979)
Amortization of Concession Right (Intangible) (20.686) (20.558) (8.242) (28.800)
Other Revenues 0 84 - 84
GROSS PROFIT 284.404 219.565 (8.242) 211.323
OPERATING (EXPENSES) INCOME (55.035) (49.052) - (49.052)
Amortization of negative goodwill (goodwill) on investments (7.064) (7.065) - (7.065)
Financial income (expenses), net (124.678) (76.178) 10.615 (65.563)
INCOME FROM OPERATIONS 97.627 87.270 2.373 89.643
NON OPERATING INCOME 1.844 1.505 - 1.505
INCOME BEFORE INCOME AND SOCIAL CONTRIBUTION TAXES 99.471 88.775 2.373 91.148
INCOME AND SOCIAL CONTRIBUTION TAXES (40.470) (36.384) (807) (37.191)
Current (36.923) (34.373) - (34.373)
Deferred (3.547) (2.011) (807) (2.818)
NET INCOME FOR THE PERIOD 59.001 52.391 1.566 53.957