A new leader in transport infrastructure concessions

Transcription

1 A new leader in transport infrastructure concessions

2 Legal Notice The contents of this presentation are provided purely on an informational basis. The historical information was obtained from the annual financial statements of the various concessionaire companies and from public information furnished by the Governmental Delegation concerning national toll highway concessionaire companies. The future estimates included in this presentation are based on a series of factors, inter alia, the general economic conditions of the countries in which Itinere does business (especially inflation, interest rates and exchange rates), as well as assumed traffic volumes. The assumptions made are subject to known and unknown risks, uncertainties and other factors which may imply that the actual future results obtained may be substantially different from those implied in these future estimates. This valuation does not constitute nor may be construed as an offer for sale, or invitation to purchase. Likewise, it is provided effective December 31, 2005 and implies no commitment on the part of Itinere with regard to its obligation to keep it uptodate. 2

3 Accounting Information The financial information contained in this presentation was prepared pursuant to two different criteria: The economic information relating to the Itinere consolidated group is prepared in accordance with International Financial Reporting Standards (IFRS) and the interpretations deriving therefrom by the competent official bodies. That in respect of the individual concessionaire companies is presented by following the rules of adaptation of the General Chart of Accounts to concessionaire companies of highways, tunnels, bridges and other toll thoroughfares. Since the valuation model is based on discounting dividends, which are paid by the concessionaire companies on the basis of earnings obtained under the rules indicated above, Itinere considers that it is the most adequate way of facilitating comprehension of the model used. It must be borne in mind that this information was prepared internally by the company and, as regards the year 2005, has not been audited. Consequently, it is possible that it will be necessary to introduce changes. In addition, in the case of information presented under IFRS: The standards presently issued and approved by the EU are subject to interpretations handed down from time to time by IFRIC. Furthermore, IASB could issue new standards which could be applied voluntarily by the SyV group for fiscal years beginning as from January 1, Given that it is the first time said standards are applied on the international level, no detailed experience exists to which to recur for the resolution of certain technical matters which may arise during the application of said standards to factual models not specifically addressed by IFRS. Changes deriving from any of the above matters or from the evolution of sector practice could also impact certain decisions and interpretations adopted as at the date hereof by the SyV Group in the preparation of the information set forth in this document. 3

4 Contents Description of Group Antecedents and Business Activities 58 Organizational Structure 9 Group Concessions 1029 Operating Concessions: Description, Operations, Financing and Valuation Spain 3181 Portugal 8095 Chile Brazil Valuation of Itinere

5 Antecedents and Business Activities 2 nd Spanish group by revenues and kilometers (19% share) in toll highway concessions. This business activity was begun at the end of 1996 with the first concession for construction and operation of a toll highway in Chile (Elqui). With the purchase of Ena in October 2003, this business area reaches maturity. It has holdings in 33 concessionaire companies, representing a total of 3,486 kilometers of highways, 19 kilometers of commuter rail services, a stake in an airport and two transportation hubs. Investment in highways as at December 2005 close to 5.6 billion euros. 5

6 Antecedents and Business Activities Activity: design, financing, development, placement into service and management of all types of concessions The group s head company is Itinere, an 91.37% subsidiary of the SyV (there are put and call options with Caixa Nova to acquire the remaining percentage) Demonstrated growth potential, based on generating new projects since its creation and through acquisitions of yielding concessions Proven experience and teamwork in operations management 6

7 Put and Call Options with Caixa Nova On December 23, 2005, respective put and call option agreements were signed with Caixa Nova on the shares each such entity holds in Itinere Infraestructuras, S.A. Each financial institution holds 12,113,908 Itinere shares, representing 8.624% of its capital stock. As consideration for the call options, the parties have established the price of 6 million euros for each one. As consideration for the put options, the parties have established the price of 4 million euros each one. The call options may be exercised freely, subject to no conditions precedent, at any time between December 1, 2008 and December 31, 2008, both dates inclusive. The unit price per Itinere share is established at euros, as a consequence of which the total sale and purchase amount will stand at (12,113,908 x ) = million euros. 7

8 Antecedents and Business Activities The group s head company is Itinere Infraestructuras, an 91.37% subsidiary of the SyV group. Its principal business is strategic definition, selection of geographic areas and contracting, development and financing of new concessions, as well as control and supervision of operating concessions. Itinere Group* has a management team of 28 persons, with more than 20 years of experience in the sector. It keeps all operational activities in the hands of each one of the companies providing the concession service (with a collective workforce of 1,423 persons). The financing activity is entirely structured and tied to the generation of cash of each concessionaire, with a high use of third party financing associated with each project. The existence of a tightly regulated frame, together with a high recurrence of revenues from the business, given its nature of a public service, allow for a high capacity of selffinancing in each project and an increase on the return to Itinere as shareholder. (*)corporate services of ItinereEna. 8

9 Organizational Structure Itinere (91.37%) Somague (100%) Itinere Chile (95.32%) 4.68% Enaitinere (100%) Avasacyr (100%) Others Somague Itinere (80%) 20% Los Lagos (99.95%) El Elqui (72.66%) Litoral Central (50%) Rutas Pacífico (50%) Vespucio Sur (50%) Acceso Nororiente (100%) Holding (0.05%) Operational Under Construction Ena (100%) Audasa (100%) Aucalsa (100%) Autoestradas (100%) Audenasa (50%) Others Avasa (50%) Henarsa (15%) Accesos Madrid R3/R5 (11.66%) Acega (9%) Madrid Sur R4 (10%) (13.5%) (9.36%) 5% Aunor (100%) Aerop. Murcia (12.5%) Metro Sevilla (27.83%) Costa Rica I (35%) Costa Rica II (35%) Pamasa (35%) Inter. Moncloa (60%) 20% Others Bulgaria (15%) Auto. Barbanza (60%) 20% Inter. Pza. Elíptica Viastur (47.5%) Autov. Turia (60%) Autov. Eresma (53%) 80% 22.5% 20% 20% Brazil Via Norte (12.36%) Triangulo Sol (50%) Sacyr (100%) Portugal Luso Ponte (17.21%) Autoestradas (22.5%) Via Litoral (12%) 9

10 Group Concessions: Length and Location % Control Concessionaire Length Country Location Audasa 215,1 Spain Northeast of Sapin. Strech FerrolTuy (Galicia) Audenasa 112,6 Spain Northeast of Spain. Strech TudelaIrurzun (Navarra) Aucalsa 86,8 Spain Northeast of Spain. Strech LeonCampomanes (Asturias) Aunor 62,0 Spain Southeast of Spain. Strech AlcantarillaCaravaca (Murcia) Autoestradas de Galicia 57,6 Spain Northeast of Spain. Strech CoruñaCarballo and PuxeirosVal Miñor (Galicia) Autovía del Turia 52,9 Spain East of Spain. Strech ValenciaLosa del Obispo (Levante) Management Viastur 24,3 Spain North of Spain. Strech OviedoGijón (Asturias) (Global Consl) Autovía del Eresma 48,5 Spain Center North of Spain. Strech SegoviaCuellar Autovía del Barbanza 40,0 Spain Northeast of Spain. Strech PadrónRibera (Galicia) Intercambiador Moncloa 0,0 Spain Center of Spain. Downtown of Madrid Intercambiador Pza. Eliptica 0,0 Spain Center of Spain. Downtown of Madrid El Elqui 228,7 Chile Centernorth of Chile. Strech Los VilosLa Serena Los Lagos 135,2 Chile South of Chile. Strech Rio BuenoPuerto Montt Autopista Nororiente 21,5 Chile Center of Chile. Strech SantiagoCentenario/Avda. Valle and Ruta 5 Norte Avasa 294,4 Spain North of Spain. Strech ZaragozaBilbao Rutas del Pacífico 141,6 Chile Center of Chile. Strech SantiagoValparaisoViña del Mar Comanagement Red Vial Litoral Central 79,9 Chile Center of Chile. Strech CartagenaAlgarrobo. Variante las Pataguas (Proporc. Autopistas del Valle 65,8 Costa Rica Center of Costa Rica. Strech San RamónSan José (Aeropuerto) Consl.) Costa Rica II 76,8 Costa Rica Centro de Costa Rica. Tramo San JoséPuerto Caldera Triangulo do Sol 442,2 Brazil East of Brazil. Area of Araquaira (Sao Paulo) Vespucio Sur 24,0 Chile Center of Chile. Strech Ruta 78 Avda. Grecia Autopistas Madrid Sur 93,5 Spain Center of Spain. R4/M50 Strech M 40 Ocaña (Madrid) Accesos de Madrid 90,3 Spain Center of Spain. R3/R5/M50 Strech M 30 Arganda del Rey/Navalcarnero (Madrid) Henarsa 80,3 Spain Center of Spain. R2 Strech M 40 Guadalajara (Madrid) Acega 56,7 Spain Northeast of Spain. Strech Santiago de CompostelaAlto S. Domingo (Galicia) Ctra. PalmaManacor 41,7 Spain Baleares Islands. Strech Palma de MallorcaManacor (Mallorca) Equity Consl Metro de Sevilla 19,0 Spain Southeast of Spain. Line 1 Sevilla`s underground (Andalucía) + F.I. Aerop. Murcia 0,0 Spain Southeast of Spain. Murcia Autoestradas do Atlántico 170,0 Portugal Center of Portugal. Strech Rio MaiorLeiria and Caldas da Rainha Santarem and Marinha Grande Via Litoral 44,2 Portugal PortugalIslan of Madeira. Highway ER 101 Lusoponte 20,4 Portugal Center of Portugal. Bridges Río Tajo (Lisboa) Via Norte 236,1 Brazil East of Brazil. Area of Riberao Preto (Sao Paulo) Trakia Motorway 443,0 Bulgary Strech Kalotinas Bourgas. Crosses the country from east to west. TOTAL 3.505,1 10

11 Group Concessions: Location PORTUGAL BRASIL 11

12 Group Concessions: Location in Spain Operational 12

13 Group Concessions: Location in Spain Construction 13

14 Group Concessions: Location in Portugal 14

15 Group Concessions: Location in Chile Operational 15

16 Group Concessions: Location in Chile Construction 16

17 Group Concessions: Location in Brazil Estado de Sao Paulo 17

18 Group Concessions: Other Locations 18

19 Group Concesions: Kilometers Eresma+Barbanza+Moncloa+Costa Rica II +Viastur+Turia+ Trakia+Pza. Eliptica +A.Valle+PalmaManacor +ENA+Metro Sevilla+Nororiente +Vespucio Sur +Red Vial Litoral Central +Avasa+Somague+Aunor+Acega+Accesos Madrid R. Pacífico +Los Lagos El Elqui

20 Group Concessions: Contract Term of Duration (years of remaining life) In progress Operational 20 Avasa Audasa Audenasa Accesos de Madrid Aucalsa Henarsa Aunor Acega Autopistas Madrid Sur Autoestradas de Galicia ElElqui Los Lagos Rutas del Pacífico Red VialLitoralCentral Vespucio Sur Lusoponte Autoestradas do Via Litoral Triangulo do Sol Via Norte Ctra.PalmaManacor Metro de Sevilla Autovía del Turia Viastur Autovía del Eresma Autovía del Barbanza I.Moncloa I.Pza. Eliptica Autopista Nororiente Autopistas delvale Costa Rica I Trakia Motorway

21 Group Concessions: Consolidated Financial Highlights Mll Euros Change. 05/04 Turnover % EBITDA % EBITDA/Turnover 79.1% 78.2% 0.9 NET PROFIT % NET PROFIT/Turnover 13.2% 17.6% 4.4 CASH FLOW % 21

22 Group Concessions: Revenue: Geographic Breakdown Country Concessionaire Turnover % Total Consolidated Ebitda % Total Net Profit % Total Audasa 126,6 34,9% 105,2 36,6% 3,3 6,8% Avasa 64,8 17,8% 53,5 18,6% 11,1 23,1% Audenasa 36,6 10,1% 29,5 10,3% 2,9 6,0% Spain Aucalsa 32,7 9,0% 22,8 7,9% 7,6 15,8% Aunor 10,3 2,8% 8,4 2,9% 0,0 0,1% Autoestradas de Galicia 11,5 3,2% 5,5 1,9% 0,5 1,0% Itinere+Enaitinere+Avasacyr 1,3 0,4% 3,8 63,0 131,3% Others 1,7 0,5% 0,6 0,2% 13,4 28,0% Portugal Others 1,8 0,5% 2,4 El Elqui 12,3 3,4% 16,8 5,9% 13,9 29,0% Los Lagos 11,1 3,1% 13,0 4,5% 17,5 36,4% Rutas del Pacífico 17,5 4,8% 14,1 4,9% 10,8 22,4% Chile Red Vial Litoral Central 1,9 0,5% 0,9 0,3% 1,6 3,4% Vespucio Sur 0,7 0,2% 0,5 0,2% 0,4 0,8% Itinere Chile 0,2 0,1% 0,6 4,1 8,5% Others 1,2 0,3% 2,7 0,9% 1,6 3,2% Triangulo do Sol 27,5 7,6% 16,9 5,9% 5,0 10,4% Brazil Others 3,1 0,9% 1,4 0,5% 0,4 0,8% Costa Rica Others 0,1 0,0% 0,1 0,0 0,1% TOTAL 363,0 100% 287,1 100% 48,0 100,0% 22

23 Group Concessions: Performance of Revenues and Ebitda Revenues by Geographic Area (Dec. 05) Ebitda by Geographic Area (Dec. 05) Chile 12.5% Brazil 8.5% Chile 16.9% Brazil 6.0% Spain 79.1% Spain 77.1% The weight of the Spanish concessions is very high, with Audasa and Avasa being noteworthy, representing 52.7% of revenues and 58.4% of Ebitda in *Ena consolidated at full year 23

24 Group Concessions: Total Investment % Control Concessionaire % stake Consolidated Fixed assets Future Investment Equity Consolidated Debt Audasa 100,0% 2.295,6 443,5 802,8 Audenasa 50,0% 432,9 192,4 75,8 Aucalsa 100,0% 786,1 345,1 280,5 Aunor 100,0% 97,0 17,9 51,2 Autoestradas de Galicia 100,0% 170,7 30,0 13,9 Autovía del Turia 80,0% 5,5 444,5 5,4 0,0 Management Viastur 75,0% 5,3 184,7 10,7 0,0 (Global Consl) Autovía del Eresma 73,0% 0,0 285,0 0,0 0,0 Autovía del Barbanza 80,0% 0,0 107,0 0,0 0,0 Intercambiador Moncloa 80,0% 0,0 100,0 0,0 0,0 Intercambiador Pza. Eliptica 80,0% 0,0 40,0 0,0 0,0 El Elqui 72,7% 256,5 117,4 121,2 Los Lagos 100,0% 268,5 109,1 143,5 Autopista Nororiente 100,0% 33,1 127,2 15,3 0,0 Avasa 50,0% 666,2 284,6 291,6 Rutas del Pacífico 50,0% 210,0 57,4 161,7 Comanagement Red Vial Litoral Central 50,0% 41,6 13,2 43,4 (Proporc. Autopistas del Valle 35,0% 0,4 93,1 8,5 0,0 Consl.) Costa Rica II 35,0% 0,0 44,5 0,0 0,0 Triangulo do Sol 50,0% 50,9 26,2 27,3 Vespucio Sur 50,0% 144,0 35,4 132,0 Autopistas Madrid Sur 10,0% 20,1 0,0 0,0 Accesos de Madrid 25,2% 37,0 199,4 0,0 Henarsa 7,5% 2,7 86,3 0,0 Acega 18,4% 2,3 28,8 0,0 Ctra. PalmaManacor 40,0% 7,0 0,0 14,0 0,0 Equity Consl Metro de Sevilla 27,8% 23,9 0,0 86,0 0,0 + F.I. Aerop. Murcia 12,5% 0,1 0,9 0,0 Autoestradas do Atlántico 22,5% 10,5 1,0 0,0 Via Litoral 12,0% 0,9 0,0 0,0 Lusoponte 17,2% 2,6 53,3 0,0 Via Norte 12,4% 3,9 0,0 0,0 Trakia Motorway 15,0% 0,0 20,0 0,0 0,0 TOTAL 5.575, , , ,8 * In equity consolidated entities corresponds to equity investment. Enaitinere has debt for 1,251.1 million euros Avasacyr has debt for million euros Itinere S.A has debt for million euros Total Debt of group Itinere = 3,684 million euros, although when startup costs pursuant to IFRS are eliminated, the gross debt amounts to 3,639 million euros, with cash of 68.5 million euros. 24

25 Group Concessions: Financing Structure Leveraging The nature of public service concessions allows a high use of third party financing (3,684 million euros in gross debt). Type of Financing 95% of the debt is project finance, tied to the generation of cash of each concession. Hedging Cost of Debt 67.1% is hedged. The average cost of debt is at 4.0%. More than 90% of the debt matures in more than 5 years. Maturity 25

26 Group Concessions: Refinancing The transactions listed below not only represent a substantial reduction of interest expense, but also extend the average life of the debt, reduce financial covenants and make more flexible the warranties. Bond issue of Avasa for 200 million euros, 10 years at 3.55%. (Previous cost = euribor plus a spread of 110 bp). Syndicated loan Avasa for 368 million euros at 7 years with a cost of euribor plus a spread of 37.5 bp. (Previous cost = euribor plus a spread of 110 bp). Refinancing of Avasacyr for an amount of million euros during a period of 7 years and at an interest rate of euribor plus 42.5 bp. (Previous cost = euribor plus a spread of 110 bp). Refinancing of Ena in the amount of 1,248.8 million euros, at an interest rate of euribor plus 65 bp (115 bp lower than the previous cost). In addition, the new amortization period is 8 years (until the end of 2013), when the previous one expired in 2010, thus also allowing elimination of the availability fees on the concessionaire credit facility, with the cancellation thereof. Bond issue of Audasa in the amount of 63.5 million euros, 10 years at 3.32%. (Previous cost = 5.13%). Syndicated loan of Audenasa for 53.2 million euros, 7 years at euribor plus 37.5 bp. (Previous cost = 4.47%). Refinancing of Los Lagos and Elqui in Chile to local currency. The total transaction amount stands at 300 million euros and the new amortization periods are set at 2019 for Los Lagos and 2015 for Elqui. Allows payment of dividends all years from 2005 forward and elimination of exchange risk. 26

27 Group Concessions: Financing Structure Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues 1,300.6 Euro UF 4.1% ,198.3 Longterm Debt Loans and other 2,085.5 Euro UF 4.0 % ,943.2 Shortterm Debt Debt Issues Euro UF 4.2% Loans and other Euro UF 3.2% TOTAL 3,684.2 Euro UF 4.0 % 14.7% 85.3% 27

28 Group Concessions: Geographic Breakdown Capital employed by geographic area Attributable fixed assets (tangible + financial) as at December 31, 2005 Chile 17.1% Brazil 1.0% Portugal 0.3% Spain 81.7% The Spanish market has a majority weight, with 81.7% of fixed assets attributable to Itinere. 28

29 Group Concessions: Investment Made in Tangible Fixed Assets CAGR: 58.5% 4,783 5,464 4, ,153 1,393 1, Purchase of Somague and acquisition of Avasa Acquisition of Ena 29

30 II. Operating Concessions Description Operations Financing Valuation

31 II: Operating Concessions: ASPAIN

32 Sector Framework Regulator/concessionaire: The Ministry of Development is the official body which grants the majority of concessions, although the regional governments also have capacity and activity being developed in recent years. The dominant system is userpaid toll, although the Autonomous Communities have also used shadow toll (charged to the taxpayer). Contractual frame: contract for development, financing, exploitation and maintenance of roadway infrastructures, submitted to an undertaking of economicfinancial equilibrium as contained in sector legislation. Tariff regulator: The tariff is revised and authorized annually. Concessions of Central Administrations: Annual revision on January 1 as per the average monthly growth of the CPI for the previous year recorded as from the month of October of each fiscal year and adjusted by the level of traffic generated. Regional Administrative Concessions: Annual revision at the end of the first quarter of each year (at 95%/100%) as per the annualized CPI recorded the previous year. Supervision of compliance with the concession framework is the responsibility of the Governmental Delegation for concessionaire companies, dependent on the Ministry of Development or such other grantor administration. Supervision includes, inter alia, annual review of accounts, access right to Board of Directors, approval for debt issues, service regulations and annual revisions of the state of the infrastructure. 32

33 Dimension of Sector and Competitive Position of Itinere Distribution of sector in Spain: The sector has 3,257 kilometers of toll highways in operation, with Itinere holding a share of 18.5%. Others 23.5% Cintra 10.1% Itinere 18.5% Abertis 48.0% Source: General Directorate of Highways 33

34 AUDASA: Highlights Concession date: October 16,1973. Status: Operational. Location: AP9, stretch between Ferrol and Tuy (215 Km.) as a union between the dorsal Galician Atlantic and Portugal. Concession term: 75 years. Termination date: August 18, Itinere Ena purchased the capital through acquisition of its head company at 100%, Ena. 34

35 AUDASA: Description Material facts regarding evolution: Activity: construction, maintenance, and exploitation of the highway which joins the north with the south of the Galician Atlantic front with 215 kilometers of length (Ferrol Portuguese border), and connects with the A3 in the direction of Lisbon. The highway was awarded at the end of 1973 with the first stretch placed into service, between A Barcala and Santiago Norte, in The characteristics of the area, with 453 overpasses, 99 bridges and viaducts, 4 singular bridges and 7 tunnels, make this roadway an irreplaceable infrastructure for the strong traffic recorded in the area, that of the greatest socioeconomic concentration in Galicia. In 2000 an additional stretch was included (Northern Access to Ferrol) and the concession period was increased to 2048 (up to 75 years). This stretch was opened, together with that of Rebullón Portuguese border, at the end of In addition, an average tariff decrease of 7% was resolved, which is compensated by the Administration on an annual basis. 35

36 AUDASA: II.A.1 AUDASA Evolution of Traffic INGRESOS and Revenues ,000 ADT 20,000 15, , , C.A.G.R.: 6.4% Revenues C.A.G.R.: 14.5% Structure of uses and traffic (2005): Average daily traffic: 23,556 vehicles, with growth in the year of 4.4%, despite the fact that 2004 was the Xacobeo Holy Year. Cumulative traffic growth in the last 5 years ( ) was 5.1%

37 AUDASA: II.A.1 AUDASA Operating Evolution EVOLUCIÓN OPERATIVA AUDASA ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros Revenues Operating Expenses EBITDA Change. 05/04 7.1% 0.5% 8.8% Material Aspects: Low seasonality. Users in the workforce, with soft peaks in the Summer (June/September). Type of user: 90.4% light vehicles. Technical Amortization Reversion Fund EBIT % 7.1% 9.3% As per resolution of February 2000 (Royal Decree 7/99) a 7% reduction was resolved, applied in full in the southern stretch. Interest Expenses Deferred Interest Expenses Ordinary Revenue PRETAX PROFIT % 15.7% 20.2% 10.3% Billing system (2005): 36% cash, 9% Audasa card, 25% dynamic toll, 23% credit card and compensation by the Administration due to the reduction: 7%. Dynamic tolls were started in April Taxes NET PROFIT Capex Maintenance* Free Cash Flow % * In 2004 the settlement of the investment of new stretches took place. The maintenance Capex was 1.8 million euros % 10.3% Network economies: control center shared with Autoestradas de Galicia. Unified billing management and maintenance services. 37

38 AUDASA: II.A.1 AUDASA Balance Sheet CAPITAL Structure EMPLEADO AUDASA ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros INVESTMENT FINANCING Investment in Highways 1,442 1,443 Equity In operation 1,442 1,443 Financial Debt In progress 0 0 Reversion Fund Accrual Accounts Other Liabilities Other Assets TOTAL 1,610 1,597 TOTAL 1,610 1,597 Other Liabilities 22.5% Equity 27.6% Financial Debt 49.9% 38

39 AUDASA: II.A.1 AUDASA Debt Structure ESTRUCTURA FINANCIERA AUDASA ATTRIBUTABLE CONSOLIDATION (100%) Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues Euro 4.0% Longterm Debt Loans and other Shortterm Debt Debt Issues 66.0 Euro 4.7% Loans and other 3.9 Euro 5.1% TOTAL Euro 4.1% 20.6% 79.4% Does not include noninterestbearing repayable advances by the administration for million euros. As adjusted, the cost would be 3.5%. In April/May 2006 will be refinanced a bond issue for 66 million euros due in this year. 39

40 AUDASA: Principal Hypotheses BASE HYPHOTESIS to end Tarifs 3.3% 2.5% 2.5% 2.5% 2.0% 2.0% Traffic 7.0% 7.0% 6.0% 5.0% 3.0% 3.0% Σ (06/end concession) Total Revenues Dividends 28,397 14,786 40

41 AUDENASA: II.A.2 Highlights AUDENASA DATOS BÁSICOS Concession date: July 28, Status: Operational. Location: AP15, stretch IrurzunTudela in Navarre (112.6 Km.). Term of concession: 56 years. Termination date: June 30, Itinere purchased 50% of the capital through the acquisition of Ena, which holds the management control. Other shareholders: Government of Navarre (50%). 41

42 AUDENASA: II.A.2 Description AUDENASA DESCRIPCIÓN Material facts regarding evolution: Activity: construction, maintenance and exploitation of the TudelaIrurzun highway, with kilometers. It joins the northern and southern Navarre and connects to the highways of Leizarán (Guipúzcoa), La Barranca (Álava) and with the Avasa Highway, which runs through the high valley of the Ebro. The first stretch was opened in 1976, between Tafalla and Noain and reached 100% activity in The highway has important toll discounts to users, which are assumed by the Government of Navarre. This induces a greater traffic level and is compensated annually with revenues to the concesisonaire. The future MedinaceliTudela highway would entail a significant traffic generator for the highway as an alternative to the route of IrúnBurgos in movements towards the center and south of the Spain. 42

43 AUDENASA: II.A.1 AUDASA Evolution of Traffic INGRESOS and Revenues , , , , , ,000 6,000 4,000 2, ADT C.A.G.R.: 9,8% Revenues C.A.G.R.: 11,3% Structure of use and traffic (2005): Average daily traffic: 16,641 vehicles. Cumulative annual traffic growth in the last 5 years ( ) was 7.0%. Low seasonality with a minimum use in June and a peak in July. Type of user: High heavy traffic with a 24.2% over total vs.75.8% of light vehicles. 43

44 AUDENASA: II.A.1 AUDASA Operating Evolution EVOLUCIÓN OPERATIVA AUDENASA ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros Var. 05/04 Material aspects: Revenues Operating Expenses EBITDA Technical Amortization Reversion Fund % 5.4% 11.5% 9.8% 9.8% Usage agreements with administrations or others: 2000 Agreement with discounts applied to tolls for heavy and regular vehicles, the monthly collection being compensated as per CPI and forecasted traffic in the corridor. EBIT Interest Expenses Deferred Interest Expenses Ordinary Revenue PRETAX PROFIT % 2.7% 5.7% 16.1% 5.0% Open toll system. 82.4% billed through electronic systems. Fiscal treatment: The company is fully exempted in that amount of profit below a 10% of the capital. The excess over that level is charged a 35% ordinary corporate rate. Taxes % NET PROFIT % Capex Maintenance % Free Cash Flow % 44

45 AUDENASA: II.A.1 AUDASA Balance Sheet CAPITAL Structure EMPLEADO AUDENASA ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros INVESTMENT FINANCING Investment in Highways Equity In operation Financial Debt In progress 0 1 Reversion Fund Accrual Accounts Other Liabilities 8 9 Other Assets TOTAL TOTAL Other Liabilities 16.5% Financial Debt 23.7% Equity 59.8% 45

46 AUDENASA: Debt Structure AUDENASA ATTRIBUTABLE CONSOLIDATION (100%) Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues Longterm Debt Loans and other 53.2 Euro Euribor+0.375% Shortterm Debt Debt Issues 22.6 Euro 2.0% Loans and other TOTAL 75.8 Euro 3.1% 29.8% 70.2% 46

47 AUDENASA: Principal Hypotheses BASE HYPHOTESIS to end Tarifs 3.3% 2.5% 2.5% 2.5% 2.0% Traffic 5.0% 5.0% 5.0% 4.5% 3.0% Σ (06/end concession) Total Revenues Dividends 2,197 1,240 47

48 AUCALSA: Highlights Concession date: October 17, Status: Operational. Location: Stretch LeónCampomanes, in the range between CastillaLeón and Asturias (86.8 Km.). Term of concession: 75 years. Termination date: October 17, Itinere acquired 100% of the capital through the acquisition of Ena, owner of the concession. 48

49 AUCALSA: Description Material facts regarding evolution: Activity: construction, maintenance and exploitation of the concession between Castilla León and Asturias between the cities of León and Campomanes with 86.8 kilometers length. The highway salvages the Cantabria range through 7 tunnels and a viaduct which converts it into a fast route without competition in communication between Asturias, the center and the south of the Peninsula. In 1983 the first stretch was opened to traffic. Since June 1997, following the construction and splitting of different tunnels, the concession is 100% operational. In 2000 the concession was modified, extending its concession period up to the legal maximum of 75 years, i.e. through October 17, In addition, a 7% reduction in tariff was resolved, compensated by the public Administration on an annual basis. In 2006 an agreement was reached with the Ministry of Development to reduce by 30% the tariffs of heavy vehicles, the Administration compensating the collection loss on an annual basis. 49

50 AUCALSA: Evolution of Traffic and Revenues ,0 0 0 ADT 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, C.A.G.R.: 6,9% Structure of use and traffic (2005): Average daily traffic: 9,006 vehicles C.A.G.R.: 9,6% Revenues Cumulative annual traffic growth in the last 5 years ( ) was 5.6%

51 AUCALSA: Operating Evolution AUCALSA ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros Revenues Operating Expenses Var. 05/04 6.5% 3.3% Material aspects: High seasonality of the concession: Maximums on weekends and vacation periods with peaks of 170%. EBITDA Technical Amortization % 10.3% Type of user: Stable distribution between light vehicles, with 84.76%, and 15.24% heavy vehicles Reversion Fund EBIT Interest Expenses Deferred Interest Expenses Ordinary Revenue % 11.5% 14.8% 18.4% 13.4% 2000 Agreement with the central administration, with toll reduction of 7%, the loss in collection being compensated on an annual basis. In 2006, another agreement was signed reducing the tariff of heavy vehicles by 30%, with the loss in collection being compensated annually. PRETAX PROFIT Taxes NET PROFIT Capex Maintenance Free Cash Flow % 31.8% 191.3% 112.5% 493.5% Open toll billing system. 38% of collection is in cash, Aucalsa card 15%, credit card 40% and compensation of Administration 7%. Economies of networks: The recent opening of the León/Benavente highway considerably increased traffic, by allowing full connection of the north coastal axis with south/central area. 51

52 AUCALSA: Balance Sheet Structure AUCALSA ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros INVESTMENT FINANCING Investment in Highways Equity In operation Financial Debt In progress 0 0 Reversion Fund Accrual Accounts Other Liabilities Other Assets 10 6 TOTAL TOTAL Other Liabilities 17.7% Equity 45.3% Financial Debt 36.9% 52

53 AUCALSA: Debt Structure AUCALSA ATTRIBUTABLE CONSOLIDATION (100%) Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues Euro 4.0% Longterm Debt Loans and other 2.4 Euro Euribor+1.45% Shortterm Debt Debt Issues 50.6 Euro 4.3% Loans and other 0.5 Euro Euribor+1.45% TOTAL Euro 4.0% 18.2% 81.8% Does not include noninterestbearing repayable advances by the administration for 51.8 million euros. As adjusted, the cost would be 3.4%. In April/May 2006 will be refinanced a bond issue for 50.6 million euros due in this year. 53

54 AUCALSA: Principal Hypotheses BASE HYPHOTESIS to end Tarifs 3.3% 2.5% 2.5% 2.5% 2.0% 2.0% Traffic 7.0% 7.0% 7.0% 5% 5% Σ (06/end concession) Total Revenues Dividends 10,300 5,542 54

55 AUTOESTRADAS II.A.4 AUTOESTRADAS DE GALICIA: DE GALICIA Highlights DATOS BÁSICOS Concession date: March 30, Status: Operational. Location: Galician Atlantic coast, in two different stretches at the upper and lower riverbeds. Term of concession: 50 years. Termination date: February 1, Itinere purchased 100% of the capital through the acquisition of Ena, head company of Autoestradas de Galicia. 55

56 AUTOESTRADAS DE GALICIA: Description Material facts regarding evolution: Activity: construction, maintenance and exploitation of the highways located between A CoruñaCarballo and PuxeirosVal Miñor, which join the Autopista del Atlántico (Atlantic Highway) with highlypopulated areas of the upper and lower riverbeds, respectively. The northern highway (AG55) was opened to traffic on December 31, 1997, and the southern stretch (AG57) in May The AG55 highway serves as a communication corridor in the area of Bergantiños between A Coruña and Carballo, in a stretch of 32.6 kilometers. The AG57 highway joins the towns of PuxeirosBaiona, located in the metropolitan area of Vigo, throughout the area of Val Miñor in Pontevedra in a stretch of 25 kilometers. 56

57 AUTOESTRADAS DE GALICIA: Evolution of Traffic and Revenues ADT C.A.G.R.: 5.1% Revenues * C.A.G.R.: 11.4% Structure of use and traffic (2005) Average daily traffic: 10,572 vehicles. The AG55 has ADT of 12,883 vehicles, with growth in the year of 5.1%, and the ADT of the AG57 is 7,559 vehicles, with an increase in the year of 1.7%. Annual cumulative traffic growth in the last 5 years ( ) was 6.5%. * (C.A.G.R. since 1999, opening date of all stretches) 57

58 AUTOESTRADAS DE GALICIA: Operating Evolution AUTOESTRADAS ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros Var. 05/04 Material aspects: Revenues Operating Expenses EBITDA % 2.1% 13.5% Seasonality of concession: High use on work days (AG55) and high during summer months in the coastal areas of the southern stretch (AG 57). Technical Amortization % Type of user: 95% light vehicles. Reversion Fund EBIT Interest Expenses Deferred Interest Expenses Ordinary Revenue % 28.2% 16.6% 5.1% 36.4% Billing system: Closed tolls. 62% collected in cash. Economies of networks with other group concessions. Connection and natural prolongation with AUDASA, which shares the conservation and maintenance of the concession. PRETAX PROFIT Taxes NET PROFIT Capex Maintenance % 8.0% 10.8% 141.8% Opening to traffic of the 2 nd Beltroad in Vigo in November 2005, is expected to entail greater and better use of the AG57 on the part of local uses, its present use, principally vacationrelated, being extended to commuters use, with traffic increasing. Free Cash Flow % 58

59 AUTOESTRADAS DE GALICIA: Balance Sheet Structure AUTOESTRADAS ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros INVESTMENT FINANCING Investment in Highways Equity In operation Financial Debt In progress 0 0 Reversion Fund Accrual Accounts 4 3 Other Liabilities Other Assets 5 5 TOTAL TOTAL Equity 23.8% Financial Other Liabilities Debt 11.1% 65.1% 59

60 AUTOESTRADAS DE GALICIA: Debt Structure AUTOESTRADAS ATTRIBUTABLE CONSOLIDATION (100%) Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues Longterm Debt Loans and other 12.5 Euro 5.1% Shortterm Debt Debt Issues Loans and other 1.4 Euro 5.1% TOTAL 13.9 Euro 5.1% 36.9% 63.1% 60

61 AUTOESTRADAS DE GALICIA: Principal Hypotheses BASE HYPHOTESIS to end Tarifs 3.3% 2.5% 2.5% 2.5% 2.0% 2.0% Traffic 5.0% 5.0% 5.0% 4.0% 3.0% 3.0% Σ (06/end concession) Total Revenues Dividends 1,

62 Transaction Involving Acquisition of Ena Antecedents Itinere led the consortium winning the privatization of the Ena group in May 2003, consolidating its position as the 2 nd group managing roadway concession in Spain by reaching a share of 18.5% in the toll highway market in Spain. Ena has the 4 concessionaire companies described above: Audasa, Audenasa, Aucalsa and Autoestradas de Galicia. Ena s concessionaire companies contributed with 472 new kilometers in operation. The acquisition was carried out in several phases: Initial acquisition 50% of the awardee consortium 20% additional By purchase from Caixa Nova and Caixa Galicia through the issuance of Itinere shares 10% additional By purchase from Torreal and El Monte 20% remainder By purchase from SCH Its acquisition, completed in December 2005, represented the creation of Enaitinere as the intermediate holding and financial vehicle tied to the cash flows to be generated by the Ena group. The price paid by Enaitinere for 100% of Ena amounted to 1,615.7 million euros, to which the issuance of shares for Caixa Nova and Caixa Galicia must be added. 62

63 ENAITINERE: Balance Sheet Structure ENAITINERE ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros INVESTMENT FINANCING Investment in Highways 0 0 Equity In operation 0 0 Financial Debt 1, In progress 0 0 Reversion Fund Accrual Accounts 6 12 Other Liabilities Other Assets 1,641 1,145 TOTAL 1,647 1,157 TOTAL 1,647 1,157 Other Liabilities 20.3% Equity 3.7% Financial Debt 76.0% 63

64 ENAITINERE: Debt Structure Enaitinere s debt is tied to the Group s cash generation, which enjoys a high recurrence of generation of revenues, coverage of debt service and financial strength, given its business nature. Financing structure of acquisition vehicle: ENAITINERE ATTRIBUTABLE CONSOLIDATION (100%) Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues Longterm Debt Loans and other 1,248.8 Euro Euribor+0.65% 0.0 1,248.8 Shortterm Debt Debt Issues Loans and other 2.3 Euro Euribor+0.65% TOTAL 1,251.1 Euro 3.4% 0.2% 99.8% SWAP Hedging at 10 years contracted for 960 million euros at 3.76% 64

65 AVASA: II.A.5 Highlights AVASA DATOS BÁSICOS Concession date: November 3, Status: Operational. Location: BilbaoZaragoza (294.4 Km.), as the union between the Mediterranean sea and the Gulf of Vizcaya. Term of concession: 53 years. Termination date: November 3, Itinere purchased 50% of the capital in October Other shareholders: Abertis 50%. 65

66 AVASA: Description Material facts regarding evolution: Activity: construction, maintenance, and exploitation of the most large toll highway in Spain between Bilbao and Zaragoza (294.4 kilometers) as connection between the Mediterranean coast, Ebro Valley and the Bay of Biscay. In 2000 an agreement was reached with the Administration which extended the concession period and modified the clauses of the concession contract: term >15 years and tariffs <30%. This agreement had a beneficial impact on AVASA, since it allowed recovering the level of revenues in just two years due to the increase in ADT. Furthermore, following the purchase, Avasa s liabilities were restructured, amounting to 1,017 million euros, of which 207 million euros were for the account of Itinere, another 207 million euros pertained to Iberpistas/Abertis and the rest remained as direct debt of Avasa. Avasa participates in several concessions as minority shareholder, such as the R2 in Madrid (connection A1 and Guadalajara). 66

67 AVASA: Evolution of Traffic and Revenues ,0 0 0 ADT 14, , , ,000 6,000 4,000 2, C.A.G.R.: 5,3% C.A.G.R.: 6,7% Revenues 2000 date of agreement to lower tariffs with increase in concession period Structure of use and traffic (2005): Average daily traffic: 13,542 vehicles. Cumulative annual traffic growth in the last 5 years ( ) was 5.0%. At the end of 2004 a new highway link, agreed in the renegotiation with the public administration, was opened close to Zaragoza, to the AP15 and Zaragoza, free of charge. This caused lower growth in traffic in the year

68 AVASA: Operating Evolution AVASA ATTRIBUTABLE CONSOLIDATION (50%) Mll Euros Revenues Operating Expenses EBITDA Var. 05/04 3.3% 5.7% 2.8% Material aspects: Seasonality of concession: Greater traffic in upper area, BilbaoMiranda de Ebro (>25,000 veh/day), and less in rest to Zaragoza (10,000 veh/day). Maximums in vacation periods. Technical Amortization Reversion Fund EBIT Interest Expenses* Deferred Interest Expenses % 6.4% 4.6% 22.6% 18.4% At the end of 2004 a new highway link was opened in Monzalbarba, close to Zaragoza, to the AP15 and Zaragoza, free of charge. This caused lower growth in traffic in the year It is compensated by the Administration of la Rioja. The polar coldfronts at the end of January and end of February also adversely affected traffic. Ordinary Revenue PRETAX PROFIT % 13.0% Type of user: 12.6% heavy vehicles, with a greater presence on the northern stretch. Taxes % Closed toll system, with fiber optics throughout. NET PROFIT Capex Maintenance Free Cash Flow % 89.5% 11.0% Billing system: in % was billed in cash, 51% with Avasa credit cards and dynamic toll collection, implanted in October 2004, already entails 13% of billing. *Debt refinancing includes a oneoff exoense of 4.2 million euros 68

69 AVASA: Balance Sheet Structure AVASA ATTRIBUTABLE CONSOLIDATION (50%) Mll Euros INVESTMENT FINANCING Investment in Highways Equity In operation Financial Debt In progress 0 0 Reversion Fund Accrual Accounts Other Liabilities Other Assets TOTAL TOTAL Equity 17.9% Other Liabilities 45.2% Financial Debt 36.9% 69

70 AVASA: Debt Structure AVASA ATTRIBUTABLE CONSOLIDATION (50%) Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues Euro 3.6% Longterm Debt Loans and other Euro Euribor+0.375% Shortterm Debt Debt Issues 0.2 Euro 3.6% Loans and other 7.4 Euro 2.4% TOTAL Euro 3.2% 2.6% 97.4% 70

71 AVASA: Principal Hypotheses BASE HYPHOTESIS to end Tarifs 3.3% 2.5% 2.5% 2.5% 2.0% Traffic 5.0% 5.0% 5.0% 4.0% 3.0% Σ (06/end concession) Total Revenues Dividends 6,007 3,142 71

72 AVASACYR: Balance Sheet Structure AVASACYR ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros INVESTMENT FINANCING Investment in Highways 0 0 Equity In operation 0 0 Financial Debt In progress 0 0 Reversion Fund Accrual Accounts 0 0 Other Liabilities 3 3 Other Assets TOTAL TOTAL Other Liabilities 1.4% Financial Debt 61.1% Equity 37.6% 72

73 AVASACYR: Debt Structure The acquisition of Avasa was carried out through an instrumental company Avasacyr, whollyowned by Itinere. AVASACYR ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros Type Amount Currency Average Cost Due in 0609 Rest Debt Issues Longterm Debt Loans and other Euro Euribor+0.425% Shortterm Debt Debt Issues Loans and other 10.4 Euro Euribor+0.425% TOTAL Euro 3.4% 30.2% 69.8% 73

74 AUNOR: II.A.6 Highlights AUNOR DATOS BÁSICOS Concession date: September 9, Status: Operational. Location: Stretch Alcantarilla Caravaca de la Cruz in Murcia. Term of concession: 30 years. Termination date: September 8, Itinere owns 100% of the capital. The Caravaca highway penetrates the area going through Mula, Bullas and Cehegín, until reaching Caravaca de la Cruz, from Murcia and Alcantarilla. By following this road one accesses, through the neighboring Moratalla, the southern and mountainsous lands of Albacete and Jaén, as well as the Alcaraz mountain range and several towns in the Segura mountain area. 74

75 AUNOR: II.A.6 Description AUNOR DESCRIPCIÓN Material facts regarding evolution: Activity: construction, maintenance and exploitation of the Northwestern highway of Murcia, through the improvement and splitting of the stretch between Alcantarilla and Caravaca, 62 kilometers long. The highway is a concession of the Regional Government of Murcia, through the shadow toll system, which includes a mechanism for guaranteed minimum revenues, pertaining to Band 1 of the 3 bands contemplated for vehicular traffic. At the present time we have already reached the maximum traffic volume forecasted, as a consequence of which the tariff is collected and the increase in traffic has no effect. During the first five years of the placement into service of the highway, the tariff will apply, increased by 15% to compensate the excess costs of construction. Tariffs year 2006, including the 15% increase: Mill Veh/km Light Price Mill. Veh/km Heavy Price Band Band Band

76 AUNOR: Operating Evolution AUNOR ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros Var. 05/04 Material aspects: Revenues Operating Expenses EBITDA Technical Amortization Reversion Fund EBIT % 2.7% 4.8% 4.5% 6.3% 10.2% Low seasonality of concession during the year and regular flow with minimum light traffic in August. ADT grew 6.2% in 2005 with 11,101 vehicles. Type of user very constant, with 16.9% of heavy vehicles, with slight oscillations during the year. Interest Expenses Deferred Interest Expenses Ordinary Revenue PRETAX PROFIT Taxes NET PROFIT Capex Maintenance* , % 58.9% 103.9% 52.2% 52.3% 52.2% 0% The regional government guarantees minimum revenues of 267 million euros. During the first five years of the placement into service of the highway, the tariff shall apply increased by 15% in order to compensate the excess costs of construction. In 2007, said increase will no longer be received, whereby turnover shall be reduced by 15%. Free Cash Flow % *Maintenance is carried as a cost 76

77 AUNOR: Balance Sheet Structure AUNOR ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros INVESTMENT FINANCING Investment in Highways Equity In operation Financial Debt In progress 0 0 Reversion Fund 11 8 Accrual Accounts 4 3 Other Liabilities Other Assets 8 14 TOTAL TOTAL Other Liabilities 31.7% Equity 17.8% Financial Debt 50.5% 77

78 AUNOR: Debt Structure AUNOR ATTRIBUTABLE CONSOLIDATION (100%) Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues Longterm Debt Loans and other 48.2 Euro Euribor+ 0.75% Shortterm Debt Debt Issues Loans and other 3.0 Euro Euribor+ 0.75% TOTAL 51.2 Euro 4.9% 14.2% 85.8% 78

79 AUNOR: Principal Hypotheses BASE HYPHOTESIS * to end Tarifs 3.7% 12.0% 3.0% 3.0% 2.5% Traffic 0.0% 0.0% 0.0% 0.0% 0.0% Σ (06/end concession) * End of the period of increased tariffs. Total Revenues Dividends

80 II. Operational Concessions: BPORTUGAL

81 Sector Framework 2005 Macroeconomic framework. The economic situation facing Portugal is weak. It is expected that the economic measures to be adopted will improve the situation in the coming years. Sector Framework. Accounting for the concession sector in Portugal follows IFRS criteria, with straightline depreciation and recognition of financial charges as per the cash method. Tariffs: annual revision as per formulation of DecreeLaw for each concession, with a maximum of 90% of the CPI for the previous year. In Portugal the toll highway sector has an operating network of 2,115 kilometers, plus another 385 kilometers under construction. There are also projects already bid on or announced for another 592 new kilometers, which would lead to a total network of 3,092 kilometers of toll highways. Lusoponte and Autoestradas total a market share of 8%. Other operators are Brisa (48% share) and Mota Engil (20% share). 81

82 LUSOPONTE: II.A.5 AVASA Highlights DATOS BÁSICOS Formed: April 5, Status: Operational. Location: Bridges Vasco da Gama and 25 de abril over the Tagus River in Lisbon. Term of concession: 35 years. Termination date: March 24, Itinere purchased 17.21% of the capital through Somague. Vasco da Gama Bridge Other shareholders: Vinci (27.37%), Skanska, Mota Engil, Teixeira Duarte, Macquarie (29.61%). 25 de abril Bridge 82

83 LUSOPONTE: Description Material facts regarding evolution: Activity: construction, maintenance and exploitation of the two bridges which cross the Tagus River in Lisbon, Vasco da Gama Bridge and 25 de Abril Bridge. In 2000 an agreement was reached with the administration changing the concession period to a fixed period of 35 years ending March 24, 2030, and resolving that the Portuguese Government pay a total of million euros to compensate the reduced tariffs maintained on the Bridges, collected every March 31 and September 30 from 2001 through In addition, the company received a subsidy from the European Union and others from the Portuguese Government in the amount of million euros. The 25 de Abril Bridge is a suspension bridge (one of the longest in the world) of 2,280 meters, with a height above sea level of 70 meters. The construction of the accesses to the bridge began in 1962 and has been open to traffic since The Vasco da Gama Bridge began its construction in 1994 and was opened to traffic in It has a spectacular concrete structure which allows an elevation above sea level of 47 meters and, therefore, it is possible to navigate under the bridge. 83

84 LUSOPONTE: Evolution of Traffic and Revenues ,000 70,000 60,000 *C.A.G.R.: 8,9% ADT Structure of use and traffic (2005): 50,000 40,000 30,000 20,000 10, Revenues C.A.G.R.: 3,7% Average daily traffic: 71,721 vehicles on the 25 de Abril Bridge and 31,476 on the Vasco da Gama Bridge. Despite the poor situation of the country and the increase in the price of oil, which translates into fewer trips over the last several years, the cumulative growth in toll revenues was sound (above 8.5%). * (C.A.G.R. since 1998, opening date of the two bridges) 84

85 LUSOPONTE: Operating Evolution LUSOPONTE ATTRIBUTABLE CONSOLIDATION (0% Equity Method) DATA HERE AT 100% Mll Euros Revenues Operating Expenses Var. 05/04 1.2% 5.8% Material aspects: The month of July represents a traffic peak, and August the lowest point, since the highway is used for the most part on work days, and in that month no tolls are collected. EBITDA % Only 2.3% of traffic pertains to heavy vehicles. Technical Amortization Reversion Fund % 51.8% of tolls are collected through the automated system Via Verde. EBIT Interest Expenses Deferred Interest Expenses Ordinary Revenue PRETAX PROFIT Taxes % 3.5% 4.2% 195.3% 29.6% 7.5% Given that the conditions of the Portuguese economy are not good, and this affects the evolution of traffic, Lusoponte is making a very considerable effort to cut expenses, as a form of improving margins. Given that we are dealing with mature concessions, despite the accounting system employed (similar to IFRS), Lusoponte presents positive results. NET PROFIT Capex Maintenance Free Cash Flow % 13.9% Subsidies from public administration are accounted for as financial income at its NPV. Annual spread is recognized as financial income in the P&L. 85

86 LUSOPONTE: Balance Sheet Structure LUSOPONTE ATTRIBUTABLE CONSOLIDATION (0% Equity Method) DATA HERE AT 100% Mll Euros INVESTMENT FINANCING Investment in Highways Equity In operation Financial Debt In progress 0 0 Reversion Fund 0 0 Accrual Accounts 6 8 Other Liabilities Other Assets TOTAL TOTAL Equity 5.8% Other Liabilities 51.5% Financial Debt 42.7% 86

87 LUSOPONTE: Debt Structure LUSOPONTE ATTRIBUTABLE CONSOLIDATION (0% Equity Method) DATA HERE AT 100% Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues Longterm Debt Loans and other Euro 8.14% Shortterm Debt Debt Issues Loans and other 9.4 Euro 7.9% TOTAL Euro 8.1% 12.1% 87.9% 87

88 LUSOPONTE: Principal Hypotheses BASE HYPOTHESIS to end Prices 3.5% 3.5% 3.0% 3.0% 2.5% 2.0% Traffic 0.0% 0.0% 2.0% 2.0% 2.5% 3.0% Σ (06/end concession Total Revenues Dividends 2,934 1,462 88

89 AUTOESTRADAS DO ATLANTICO: Highlights Date formed: December Status: Operational. Location: In the coastal area of Portugal, from Cril through Caldas da Reina and from the latter, towards the interior, to Santarém. Term of concession: 30 years. Termination date: December Itinere purchased 22.5% of the capital through Somague. Other shareholders: Moniz da Maia (22.5%), Novopca (22.5%,) Constructora do Lena (22.5%) and Brisa (10%). 89

90 AUTOESTRADAS DO ATLANTICO: Description Material facts regarding evolution: Activity: construction, maintenance and exploitation of A8 North (Caldas da Reina Leiria) and South (CrilCaldas da Reina), as well as of the A15 (Caldas de Reina Santarem). Stretch A8 Sur (CrilCaldas da Reina) is the oldest and has an extension of 80 kilometers. Stretch A8 North (Caldas da ReinaLeiria) opened on October 9, 2001 and has an approximate extension of 49 kilometers. From October 2002 the stretch Caldas da ReinaSantarem has been open to traffic, with a length of 40 kilometers. It was the first Portuguese highway concession granted to private companies. As from the second half of 2007, the opening of the Central Coast (awarded in the third quarter of 2004) will improve the road network and is expected to yield an improvement in traffic. 90

91 AUTOESTRADAS DO ATLANTICO: Evolution of Traffic and Revenues ,000 ADT 20,000 15, , , * C.A.G.R.: 1,9% * C.A.G.R.: 5,2% Revenues 2002 opening date of all stretches 2002 opening date of all stretches Structure of use and traffic (2005): Average daily traffic: 16,580 vehicles. Despite the poor situation of the country and the increase in the price of oil, which translates into fewer trips for the last several years, cumulative growth in toll revenues has been considerable (5.2%). * (C.A.G.R. since 2002, opening date of all stretches) 91

92 AUTOESTRADAS DO ATLANTICO: Operating Evolution AUTOESTRADAS ATTRIBUTABLE CONSOLIDATION (0% Equity Method) DATA HERE AT 100% Mll Euros Revenues Operating Expenses EBITDA Technical Amortization Reversion Fund EBIT Interest Expenses Deferred Interest Expenses Var. 05/04 4.3% 0.8% 6.7% 7.4% 5.3% 5.4% 7.4% Material aspects: Collections through electronic systems (Via verde) represent 59.2% of total revenues, cash is collected at 24.4% and 16.4% by credit card. The months of July, August and December represent a traffic peak, since the highway has a certain vacation component. Given that this entails a concession in its beginning years of life, and due to the accounting system employed (similar to IFRS), Autoestradas presents losses at the fiscal year close. Ordinary Revenue % PRETAX PROFIT % Taxes % NET PROFIT % Capex Maintenance % Free Cash Flow % 92

93 AUTOESTRADAS DO ATLANTICO: Balance Sheet Structure AUTOESTRADAS ATTRIBUTABLE CONSOLIDATION (0% Equity Method) DATA HERE AT 100% Mll Euros INVESTMENT FINANCING Investment in Highways Equity 1 10 In operation Financial Debt In progress 0 2 Reversion Fund 0 0 Accrual Accounts Other Liabilities Other Assets TOTAL TOTAL Other Liabilities 17.7% Equity 0.2% Financial Debt 82.1% 93

94 AUTOESTRADAS DO ATLANTICO: Debt Structure AUTOESTRADAS ATTRIBUTABLE CONSOLIDATION (0% Equity Method) DATA HERE AT 100% Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues Longterm Debt Loans and other Euro 3.84% Shortterm Debt Debt Issues Loans and other 12.9 Euro 4.22% TOTAL Euro 3.9% 10.5% 89.5% 94

95 AUTOESTRADAS DO ATLANTICO: Principal Hypotheses There is an agreement signed with Brisa on the part of all partners, whereby each one shall sell10% at an equivalent price of 255 million euros for the total concession. At this price, our stake represents a value of 57.5 million euros. 95

96 II. Operational Concessions: CCHILE

97 Sector Framework 2005 Sector Framework. Best position in Latin America. During fiscal year 2005 the Chilean economy performed favorably, with internal demand growing (+11.1% E) as well as employment. GDP is expected to grow 6.3% and the CPI stands at 3.1%. Sector Framework. Regulator/concessionaire: The management of concessions of all types of infrastructures is vested in the Ministry of Public Works which enacted its first concession law in 1991 and which supervises the management through the General Concession Coordinator. Contractual Framework: Concessions Law of 1996 which consecrates the principle of economicfinancial equilibrium, given the nature of the public service. Includes the possibility of guaranteed revenue levels, mechanisms for repayment, early cancellation and hedging of exchange risk (subject to the development of the domestic financial system). Tariff Regulator: the Ministry of Public Works generally applies an annual tariff revision, as per the annualized CPI recorded in the month of placement into service of the concession (possible additional adjustments relating to roadway congestion levels and increases greater than the CPI for the period). Tariffs are set in Development Units (constant peso), as a consequence of which the annual adjustment reflects any deviation ocurring between the current peso and the socalled Devleopment Unit (Unidad de Fomento; UF) UF/peso 17, ,

98 Dimension of Sector and Competitive Position of Itinere Distribution of sector in Chile: The sector has 2,200 kilometers of toll highways, with a share for Itinere of 17%. Itinere 17% Others 42% OHL 10% Abertis 3% Cintra 28% 98

99 LOS LAGOS: Highlights Concession date: September 20, Status: Operational. Location: Stretch Río BuenoPuerto Montt of the Panamerican highway, in centralsouthern Chile. Term of concession: 25 years. Termination date: September 20, Itinere owns a 100% direct stake. 99

100 LOS LAGOS: Description Material facts regarding evolution: Activity: construction, maintenance and exploitation of Route 5 highway in the stretch between Río Bueno and Puerto Montt and the circumvallation of Puerto Montt, with a total length of kilometers. The highway, of an innercity nature, runs through the region of Los Lagos, which has an extension of 400 kilometers from North to South and an approximate surface of 67,000 kilometers, 10% of Chilean national territory, this being the third most populated region in the country (1.8 million inhabitants). The highway has 2 trunk accesses and 12 lateral ones. In 2005 The Ministry for Public Works has signed with the concessionaire a supplementary agreement for additional works and maintenance that grants it the right to collect the total amount of 454,269 UF updated annually at a 11,36% rate. Payments for this concept can be made by the public administration at any time during the concession life. In the event of its noncancellation before concession ends, it can be extended for 10 years more to complete its total repayment. Additional investments are already booked in the concessionaire s fixed assets and associated operational costs are recognized within current expenses of the company. 100

101 LOS LAGOS: Guarantees The concession contract includes guaranteed minimum revenues for a value of 7.6 million UF, a growing subsidy of 10.7 million UF. Year Subsidy Minimum Revenue UF Year Subsidy Minimum Revenue UF , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

102 LOS LAGOS: Evolution of Traffic and Revenues ,000 7,000 ADT 6,000 5,000 4,000 3,000 2,000 1,000 0 C.A.G.R.: 1,8% Structure of use and traffic (2005): Average daily traffic stood at 6,934 vehicles, with a growth in the year of 6.0% Toll Revenues (exclusively and in M ill. Chilean Pesos) * C.A.G.R.: 7,0% The structure of guaranteed revenues and subsidies ensures up to 80% of total concession revenues * (C.A.G.R. since 2002, opening date of all stretches) 102

103 LOS LAGOS: Operating Evolution LOS LAGOS ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros Revenues Operating Expenses EBITDA* Technical Amortization Var. 05/ % 7.0% 3.7% 39.9% Material aspects: Considerable seasonality of concession in the Summer months, of up to 150%, as well as in the circumvallation of Puerto Montt and in neighboring towns. Reversion Fund EBIT % 48.3% Type of user: High percentage of heavy vehicles due to industrial activity, with 27% of the total. Interest Expenses** Deferred Interest Expenses % 90.8% Open toll and manual billing system with 12 lateral tolls. Ordinary Revenue PRETAX PROFIT Taxes NET PROFIT % 268.7% 134.1% 327.6% Subsidies from public administration are accounted for as financial income at its NPV. Annual spread is recognized as financial income in the P&L. Capex Maintenance*** Free Cash Flow % * Includes subsidies not in Turnover ** Positive due to translation differences *** Carried as a cost 103

104 LOS LAGOS: Balance Sheet Structure LOS LAGOS ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros INVESTMENT FINANCING Investment in Highways Equity In operation Financial Debt In progress 0 0 Reversion Fund 4 3 Accrual Accounts Other Liabilities* Other Assets* TOTAL TOTAL * Includes deferred income from subsidies Equity 23.4% Other Liabilities 45.6% Financial Debt 31.0% 104

105 LOS LAGOS: Debt Structure LOS LAGOS ATTRIBUTABLE CONSOLIDATION (100%) Amount Currency Average Cost Mll Euros Type 0609 Due in Rest Longterm Debt Debt Issues Loans and other UF 6.15 % Shortterm Debt Debt Issues Loans and other 5.6 UF 6.15 % TOTAL UF 6.2% 17.6% 82.4% Local Debt stands at 4.93 million UF Right granted for an exchange rate insurance between constant peso (UF) and USD on the part of the public administration, with a deductible of 10% and for the entire life of the concession. Given that the financing is in local currency, this insurance is not necessary. 105

106 LOS LAGOS: Principal Hypotheses BASE HYPOTHESIS to end Prices 3.0% 2.5% 2.5% 2.5% 2.5% Traffic 4.5% 4.5% 4.5% 4.5% 4.0% Σ (06/end concession) Total Revenues Dividends

107 EL ELQUI: Highlights Concession date: December 16, Status: Operational. Location: Stretch Los Vilos La Serena of the Panamerican highway, in centralnorthern Chile. Term of concession: 25 years. Termination date: December 16, Itinere incorporated the company upon adjudication of the concession and holds a stake of 72.7%. Other shareholders: Abertis: 25% and Epsa: 2.3%. 107

108 EL ELQUI: Description Material facts regarding evolution: Construction, maintenance and exploitation of Route 5, in the access of Los Vilos La Serena, of kilometers length, including the construction of 16 unlevel intersections, 17 pedestrian walkways, 16 crossings for cattle and agricultural machinery, construction of service streets, etc. The highway was opened to traffic in 1999 and has two trunk tolls and four lateral ones. It is the leading highway of the Andean country with a designed speed of 120 km./hour. This highway gives service to five areas of the Region, which total a population of 448,105 inhabitants, a city population especially concentrated in the province of Elqui and Ovalle. In January 2001 a supplementary agreement was signed with the public administration by which tariffs were increased by a 9.65% to compensate larger investments made for the amount of 267,322 UF. The end of this tariff rise is estimated for

109 EL ELQUI: Guarantees The concession contract includes guaranteed minimum revenues for a value of 10.8 million UF and a subsidy of 11.6 million UF. Year Subsidy Minimum Revenue UF Year Subsidy Minimum Revenue UF , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

110 EL ELQUI: Evolution of Traffic and Revenues ,000 3,500 3,000 2,500 2,000 1,50 0 1, ADT * C.A.G.R.: 2.4% Toll Revenues (exclusively and in M ill. Chilean Pesos) * C.A.G.R.: 8.7% Structure of use and traffic (2005): Cumulative Average daily traffic (ADT) stood at 3,363 vehicles, with growth of 7.1%. Light vehicular traffic grew 1.8%, and heavy vehicles 5%. The structure of guaranteed revenues and subsidies represents 86.2% of the guaranteed total concession revenues. * (C.A.G.R. since 2001, opening date of all stretches) 110

111 EL ELQUI: Operating Evolution EL ELQUI ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros Revenues Operating Expenses EBITDA* Technical Amortization Reversion Fund EBIT Interest Expenses** Deferred Interest Expenses Ordinary Revenue PRETAX PROFIT Taxes NET PROFIT ,3 3,9 16,9 10,1 1,5 5,2 15,2 3,4 23,8 23,9 4,5 19, ,2 3,5 15,4 6,5 1,0 7,9 1,0 1,9 8,8 8,9 2,4 6,5 Var. 04/03 20,1% 10,8% 9,9% 55,7% 55,8% 33,5% 1467,6% 75,8% 169,4% 169,9% 87,9% 200,0% Material aspects: Seasonality of concession: High in summer in the northern area and more moderate in the southern stretch, with an average moderate traffic of around 3,000 vehicles/day. Type of user: the southern area has a greater percentage of heavy vehicles, up to 150% outside of summer, due to mining activities. Open and manual toll system, with 4 lateral ones. Subsidies from public administration are accounted for as financial income at its NPV. Annual spread is recognized as financial income in the P&L. Capex Maintenance*** Free Cash Flow 32,2 14,4 123,2% * Includes subsidies not in Turnover ** Positive due to translation differences *** Included as a cost 111

112 EL ELQUI: Balance Sheet Structure EL ELQUI ATTRIBUTABLE CONSOLIDATION (100%) Mll Euros INVESTMENT FINANCING Investment in Highways Equity In operation Financial Debt In progress 0 0 Reversion Fund 5 3 Accrual Accounts Other Liabilities* Other Assets* TOTAL TOTAL * Includes deferred income from subsidies Equity 24.5% Other Liabilities 50.2% Financial Debt 25.3% 112

113 EL ELQUI: Debt Structure EL ELQUI ATTRIBUTABLE CONSOLIDATION (100%) Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues Longterm Debt Loans and other UF 5.68% Shortterm Debt Debt Issues Loans and other 8.7 UF 5.68% TOTAL UF 5.68% 30.9% 69.1% Local Debt stands for 4.15 million UF Right granted for exchange rate insurance between constant peso (UF) and USD on the part of the public administration, with a deductible of 10% and for the entire life of the concession. Given that the financing is in local currency, this insurance is not necessary. 113

114 EL ELQUI: Principal Hypotheses BASE HYPOTHESIS to end Prices 3.0% 2.5% 2.5% 2.5% 2.5% Traffic 5.0% 5.0% 5.0% 5.0% 5.0% Σ (06/end concession) Total Revenues Dividends

115 RUTAS DEL PACIFICO: Highlights Concession date: August 31, Status: Operational. Location: Stretch between Santiago de Chile and Valparaíso/Viña del Mar. Term of concession: variable, in function of total cumulative revenues reaching million UF discounted at a fixed rate. Termination date: expected in Itinere incorporated the company in 2000 with 50% of the capital. Other shareholders: ACS 50%. 115

116 RUTAS DEL II.B.3PACIFICO: RUTAS DEL PACÍFICO Description DESCRIPCIÓN Material facts regarding evolution: Activity: Construction, maintenance and exploitation of Route 68 which joins Santiago and Valparaíso, 109 kilometers long. It includes the southern stretch of the highway which joins Viña Alemana and Viña del Mar (20 kilometers) and other branches (12.6 kilometers). The termination date of the concession is variable. It may occur when the updated value of concession revenues reaches million UF, estimated for In December % of the concession was opened to traffic, with the Ministry of Public Works, the concessionaire, and the construction company sharing collection of the tolls, a special situation as a recognized bonus for completed the works early. In April 2002 a bond issue was completed at Rutas for a value of 11.4 million UF, the largest carried out in the year in Latin America, which was honored with several awards, such as Latin American Deal of the year

117 RUTAS DEL PACIFICO: Evolution of Traffic and Revenues , , , , , ,000 6,000 4,000 2, ADT C.A.G.R.: 6.1% Toll Revenues (exclusively and in M ill. Chilean Pesos) * C.A.G.R.: 9.4% * (C.A.G.R. since 2003, opening date of all stretches) Structure of use and traffic (2005): 68.2% of traffic occurs at the toll plazas of Lo Prado and Zapata and the rest at the lateral tolls together with those of the Southern Branch. ADT is 16,746 vehicles, growing 6.3% with respect to A guarantee exists in respect of the concession term conditioned on cumulative obtaining of forecasted revenues of 12.2 million UF, constant. 117

118 RUTAS DEL PACIFICO: Operating Evolution RUTAS PACIFICO ATTRIBUTABLE CONSOLIDATION (50%) Material aspects: Mll Euros Revenues Operating Expenses EBITDA Var. 05/ % 2.9% 15.6% High seasonality of concession on vacation dates and weekends. Type of user: average level of heavy vehicles, 21% of the total in Lo Prado and Zapata and 5% of the total in the southern branch. Technical Amortization Reversion Fund % 213.3% Open toll system, with 6 lateral accesses. Dynamic toll in the process of being implanted. EBIT Interest Expenses Deferred Interest Expenses % 106.6% 87.8% Losses occurred in this fiscal year due to the appreciation of the UF against the peso. Thus, the monetary correction of the loans entailed a greater financial burden. Ordinary Revenue % PRETAX PROFIT % Taxes % NET PROFIT % Capex Maintenance* Free Cash Flow % * Carried as cost 118

119 RUTAS DEL PACIFICO: Balance Sheet Structure RUTAS DEL PACIFICO ATTRIBUTABLE CONSOLIDATION (50%) Mll Euros INVESTMENT FINANCING Investment in Highways Equity In operation Financial Debt In progress 0 0 Reversion Fund 1 1 Accrual Accounts Other Liabilities Other Assets TOTAL TOTAL Other Liabilities 12.4% Equity 22.8% Financial Debt 64.8% 119

120 RUTAS DEL PACIFICO: Debt Structure RUTAS DEL PACIFICO ATTRIBUTABLE CONSOLIDATION (50%) Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues UF 5.5%5.8% Longterm Debt Loans and other Shortterm Debt Debt Issues Loans and other TOTAL UF 5.5%5.8% 3.9% 96.1% Local Debt stands at 5.74 million UF (attributable 50%). The concession has financing via bonds issued in Chilean pesos in 2002, one of the largest carried out in Latin America, with an outstanding balance as at December 2005 of million euros. 120

121 RUTAS DEL PACIFICO: Principal Hypotheses BASE HYPOTHESIS to end Prices 3.0% 2.5% 2.5% 2.5% 2.5% Traffic 4.5% 4.5% 4.5% 4.5% 4.0% Σ (06/end concession) Total Revenues Dividends 1,

122 VESPUCIO SUR: Highlights Concession date: October 6, Status: Operative. Location: Stretch between Avda. De Grecia and Route 78 in Santiago de Chile. It is an innercity concession. Concession term: 40 years. Termination date: December 5, Itinere incorporated the company in 2001 with 50% of the capital. Other shareholders: Acciona 50%. 122

123 VESPUCIO II.B.3 SUR: RUTAS DEL PACÍFICO Description DESCRIPCIÓN Material facts regarding evolution: Activity: Construction, conservation and exploitation of the Américo Vespucio Sur system, between Route 78 (Autopista del Sol) and Avenida de Grecia in the metropolitan area of Santiago de Chile, of 24 kilometers. This road forms part of the city s circumvalation ring. Thus, Route 78 brings it users driving to the eastern sector of the city; the Central Highway crosses it transversally and brings users both from the south as well as the north of the city and the country and the Southern Access to Santiago brings the concession the vehicle flows coming from the south of the country, driving towards the east of Santiago. The connectivity of the transversal streets is materialized by means of 39 links. This concession has stateoftheart ITS systems, highlighted among which is the freeflow electronic toll collection system. Fifteen toll collection points are implemented via a free flow system. On December 1, 2005, the concession was opened to traffic. A supplementary agreement is wished to be signed for expansion of the concession by approximately 6 kilometers between Avenida de Grecia and Avenida Francisco Bilbao. 123

124 VESPUCIO SUR: Balance Sheet Structure VESPUCIO SUR ATTRIBUTABLE CONSOLIDATION (50%) Mll Euros INVESTMENT FINANCING Investment in Highways Equity In operation Financial Debt In progress 0 63 Reversion Fund 0 0 Accrual Accounts 0 0 Other Liabilities 5 20 Other Assets TOTAL TOTAL Liabilities 2.9% Equity 20.3% Financial Debt 76.7% 124

125 VESPUCIO SUR: Debt Structure VESPUCIO SUR ATTRIBUTABLE CONSOLIDATION (50%) Due in Mll Euros Type Amount Currency Average Cost 0609 Rest Debt Issues 76.7 UF 4.5% Longterm Debt Loans and other 48.5 UF 5.91% Shortterm Debt Debt Issues Loans and other 6.9 UF 5.38% TOTAL % 0.5% 57.6% Local Debt stands for 2.5 million UF, attributable 50%. 125

126 VESPUCIO SUR: Principal Hypotheses BASE HYPOTHESIS to end Prices 2.5% 2.5% 2.5% 2.5% 2.5% Traffic 37.5% 20.0% 4.5% 4.0% 4.0% Σ (06/end concession) Total Revenues Dividends 4,795 2,

127 II. Operating Concessions: DBRAZIL

128 II.B.1 RUTA 5: RÍO BUENO PUERTO MONTT DESCRIPCIÓN Description of System in Sao Paulo The state of Sao Paulo is one of the most important and most economically developed in Brazil, whose highway road transportation system is the largest in the country, with 34,650 kilometers (11,600 kilometers are municipal property, 22,000 kilometers are state property and 1,050 kilometers are federal highways). On July 5, 1996, by law, the government implemented a privatization and new highway infrastructure concession plan, as a consequence of which the majority of highways under state protection began to be managed by private companies. In order to implement the plan, the network was divided into 12 sections, with a total of 3,500 kilometers, which connect 198 towns having an approximate population of 20 million inhabitants, 54% of the total of the state. Of these 12 companies, Itinere has a stake in two: Triángulo do Sol and Via Norte. This state also has the greatest number of two, four and sixlane highways in Latin America. According to the National Transportation Confederation, it is the best highway network in the country, with 59.4% of them rated as excellent. All highways in the state of Sao Paulo have an automated toll collection system ( Sem parar ) based on telematic toll collection. Tariff frame: annual adjustment as per a factor relating to the change in annual IGPM and in certain cases as a monetary correction factor of the exchange rate against the U.S. dollar. 128

129 TRIANGULO DO SOL: Highlights Formed: April 29, Status: Operative. Location: The triangle between Sao Carlos and Mirassol; Bebedouro and Matao and Sertãozinho to Borborema in the centralnorthern region of the state of Sao Paulo. Concession term: 20 years Termination date: March 2018 Itinere holds a 50% stake through Somague. Other shareholders: Leao & Leao (50%). 129