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Obrascon Huarte Lain Brasil S.A.3Q08November 13, 2008                                           Earnings Release          ...
3Q08 Earnings Release                                                                                                     ...
3Q08 Earnings Release                                                                                                     ...
3Q08 Earnings Release                                                                                                     ...
3Q08 Earnings Release                                                                                                     ...
3Q08 Earnings Release                                                                                                     ...
3Q08 Earnings Release                                                                                                     ...
3Q08 Earnings Release                                                                                    November 13, 2008...
3Q08 Earnings Release                                                                                  November 13, 2008  ...
3Q08 Earnings Release                                                                                  November 13, 2008  ...
3Q08 Earnings Release                                                                                                Novem...
3Q08 Earnings Release                                                                 November 13, 2008                   ...
3Q08 Earnings Release                                                                   November 13, 2008                 ...
3Q08 Earnings Release                                                                                          November 13...
3Q08 Earnings Release                                                             November 13, 2008                       ...
3Q08 Earnings Release                                                                                   November 13, 2008 ...
3Q08 Earnings Release                                                                                                     ...
3Q08 Earnings Release                                                                                                     ...
3Q08 Earnings Release                                                                                                     ...
3Q08 Earnings Release                                                                                                   No...
3Q08 Earnings Release                                                                                                     ...
Release 3 q08
Release 3 q08
Release 3 q08
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Transcript of "Release 3 q08"

  1. 1. Obrascon Huarte Lain Brasil S.A.3Q08November 13, 2008 Earnings Release Page 1 of 243Q08Earnings ReleaseSão Paulo, November 13, 2008.
  2. 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 ofPhone 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, thePhone 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 millionBloomberg: OHLB3 BZ gross debt (+R$321.0 million vs. 2Q08) and R$651.8 million net debt (+R$181.2Thomson 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/EBITDAUpdate on 11/12/2008Closed price: R$13.17 / share ratio, is currently at 1.4x.Market value: R$907.2 million Changes in accounting practices: Among the main changes brought by Law 11,638/07, which impact the Company’s Quarterly Financial Information, is the mandatory booking at present value of significant long-term assets and long-term liabilities, as “Concession fee obligation” and the “Concession Right”. Previously, the company booked them with a nominal value. Investor Relations www.ohlbrasil.com.br ri@ohlbrasil.com.br Rua Joaquim Floriano, 913, 6º andar - Francisco Leonardo M. da Costa CFO and IRO francisco.leonardo@ohlbrasil.com.br Itaim Bibi – São Paulo – SP - Alessandro Scotoni Levy IR Manager alessandro@ohlbrasil.com.br CEP 04534-013 - Vinicius Romboli Narcizo Analyst vinicius@ohlbrasil.com.br Phone no.: (+55 11) 3074-2409 - Murilo Tarini Analyst murilo@ohlbrasil.com.br
  3. 3. 3Q08 Earnings Release November 13, 2008 Page 3 of 24 OBRASCON HUARTE LAIN BRASIL S.A. CONSOLIDATED FINANCIAL STATEMENTS (in R$ Thousand) % % 3Q08 2Q08 3Q07 3Q08/2Q08 3Q08/3Q07 9M08 9M07 9M/9MGROSS 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/aOther 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 3Q08/3Q07Fixed 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. 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 3Q07Autovias 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$/Equiv-Vehicles) 2Q08 3Q07Autovias 5.51 4.95 4.90 11.3% 12.4% 5.14 5.93 -13.3%Centrovias 8.84 7.82 7.48 13.0% 18.2% 8.08 7.28 11.0%Intervias 4.53 4.06 4.07 11.6% 11.3% 4.23 3.96 6.8%Vianorte 6.43 5.80 5.82 10.9% 10.5% 6.03 5.65 6.7%Total: 5.86 5.24 5.18 11.8% 13.1% 5.45 5.30 2.8% Traffic Performance (Thousand Eqv- Vehicles) Autovias Adjustment: In order to better understand the actual impact over the 6.3% 6.3% period’s traffic growth, we present a table with the Autovias Adjustment, in which we 6.4% 6.4% take into account the average traffic volume of the toll plazas of São Simão and Santa Rita to calculate traffic fluctuations in these periods. Periods adjusted by the 37,713 35,464 35,442 average were: 3Q07 and 9M08. For further information, see Autovias Adjustment, in 7,311 7,383 7,821 the glossary. 13,214 13,042 13,882 5,420 5,419 5,881 Considering the Autovias Adjustment, traffic in 9M08 grew 8.4% from 9M07. 9,519 9,598 10,129 3Q07 2Q08 3Q08 Vehicle-Equivalents 9M08 9M07 9M/9MAutovias Centrovias Intervias Vianorte Autovias (Average SS+SR)* 19,092,092 16,513,268 15.6% Centrovias 16,538,375 15,171,542 9.0% Intervias 38,682,299 36,876,050 4.9% Vianorte 21,843,198 20,135,566 8.5% Total: 96,155,964 88,696,426 8.4% Average Toll Tariff 9M08 9M07 9M/9M (in R$/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. 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 3Q07Autovias (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 3Q07Autovias 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. 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 3Q07NET 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. 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 3Q07Financial 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 practicesintroduced by law nº11,638. For further information, look at “Change in Accounting Practices” at the Glossary.
  8. 8. 3Q08 Earnings Release November 13, 2008 Page 8 of 24The growth of the Net Financial Result in the 3Q08 occurred mainly due to thefollowing 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 3T08NET INCOMEThe Company’s Net Income for 3Q08 was R$30.8 million, an increase of 12.0% vs.3Q07.Although higher financial expenses negatively affected the result, as mentionedabove, traffic growth in relation to 3Q07 (+6.3%), the tariff adjustment (+11.53%),and the reduction in costs and expenses vs. 2Q08 were the main drivers of higherprofits in the quarter. Net Income (R$ 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. 9. 3Q08 Earnings Release November 13, 2008 Page 9 of 24INDEBTEDNESSThe 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 3Q07Gross 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 ourindebtedness connected to the development of programs of investment in ourconcessionaires.The following graph shows our Leverage Ratio, as measured by the ratio NetDebt/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 EBITDABelow, we show the breakdown of our debt indexers: %3Q08/ %3Q08/Indebtedness (R$ thousand) 3Q08 2Q08 3Q07 2Q08 3Q07Indexes: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. 10. 3Q08 Earnings Release November 13, 2008 Page 10 of 24The 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 TermNext, 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/09BNDES (Federal Concessions): On November 10, 2008, BNDES approved theframing related to the financing of 70% of the CAPEX of the first 6 years of federalconcessions. We believe that the closing of this long term financing operation willoccur approximately in 12 months.As the first phase of the long term financing, the company is negotiating withBNDES a “bridge loan”, which the first disbursement may occur in 1Q09, toguarantee the development of investments in the federal concessions. We estimatethat the maturity of this “bridge loan” should be in 18 months and the cost close toTJLP + 3.5% p.y..
  11. 11. 3Q08 Earnings Release November 13, 2008 Page 11 of 24INVESTMENTSOur investments in 3Q08 amounted to R$249,9 million. The table belowdemonstrates our investments on the 3Q08 and 9M08: Capex Cash Flow - 3Q08 Real % 9M08 Real % 2008(E) % (R$ 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 resultsState Concessions: A total of R$72.3 million was invested in our stateconcessionaires. In the 9M08, the company invested 73.3% of the total estimatedto 2008. Follows, chart with the amount invested and the estimate of investment tothe next 5 years. Completed and Estimated Investments - State Concessions (R$ Million) 250 210 188 118 70 50 47 2006 2007 2008E 2009E 2010E 2011E 2012EFederal Concessions: A total of R$227.1 million were invested in federalconcessionaires during the 9M08 on initial road recovery services (such as: holefilling, sign improvements and weed cutting), and in the initial construction works oftoll plazas.Due to the delay in the beginning of construction works of toll plazas, resulting fromthe delay in obtaining the licenses and authorizations, we revised our investment(cash flow) timeframe for the next six years. Estim ated Investm ents - Federal Concessions - Base July/2008 (R$ m illion) 1,235 1,233 1,070 560 531 129 2008 2009 2010 2011 2012 2013
  12. 12. 3Q08 Earnings Release November 13, 2008 Page 12 of 24The 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 - SCAutopista 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 - RJAutopista 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 - MGAutopista 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 - PRAutopista 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. 13. 3Q08 Earnings Release November 13, 2008 Page 13 of 24Although the initial forecast was to open the toll plazas six months after the signingof the agreement (February 14, 2008), there was a delay in the beginning of the tollplazas’ 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, P5plaza; on Autopista Régis Bittencourt. To begin this construction, the companyawaits 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 ForestryProduction of the State of São Paulo (Fundação Florestal – SP).Other two toll plazas, which are already under construction, awaiting the eminentdomain process to be concluded. The toll plazas are: P1 plaza; on AutopistaFernão 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, tollfree phone numbers, traffic inspection vehicles and fire fighting and animalapprehension services were made available on August 15, 2008.Any facts or delays in investments changing the contractual conditions will because for economic rebalancing of the contracts in the future.
  14. 14. 3Q08 Earnings Release November 13, 2008 Page 14 of 24PERSONNELWe present below the structure and evolution of OHL Brasil’s and its subsidiaries’personnel, in light of the hiring program initiated for road recovery andadministrative 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 831STOCK MARKETDuring 3Q08, the shares of OHL Brasil posted variation of -22.0%, vs. -22.5% ofthe 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 IBOVDaily Average 3Q08 2Q08 3Q07 3Q08/2Q08 3Q08/3Q07Nº 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. 15. 3Q08 Earnings Release November 13, 2008 Page 15 of 24SHAREHOLDES STRUCTUREThe 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. 16. 3Q08 Earnings Release November 13, 2008 Page 16 of 24CORPORATE PROFILEOHL Brasil S.A. is the largest Company in toll road concessions sector in Brazil interms of kilometers under management, with 3,226 km in operation. Through itsnine concessionaires, OHL Brasil manages roads in the states of São Paulo, MinasGerais, Rio de Janeiro, Santa Catarina and Paraná. It currently holds 100% of thecapital of the state concessions Autovias, Centrovias, Intervias and Vianorte; andthe 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 Spanishcompany that operates in the infrastructure area, including project selection, publiccontract bidding, financing, construction and operation. OHL Concesiones, besidesbeen the main shareholder of OHL Brasil, currently manages also several roadconcessionaires in Spain, Chile, Mexico and Argentina. OHL Concesiones is awholly-owned subsidiary of the Spanish group OHL, one of the leaders in theconstruction and concession sectors in Spain.For further information, visit:www.ohlbrasil.com.brPORTFOLIO OF CONCESSION ASSETSBelow, we present the main information concerning our portfolio of concessions: Fixed Concession ConcessionConcessionaires Km Toll Plazas Contract Index Charge Payment Maturity MaturityState ConcessionsAutovias 316.6 5 aug/2018 aug/2018 IGP-MCentrovias 218.2 5 jun/2018 jun/2019 IGP-MIntervias 375.7 9 feb/2020 jan/2028 IGP-MVianorte 236.6 4 mar/2018 mar/2018 IGP-MFederal ConcessionsAutopista Litoral Sul 382.3 5 n.a. feb/2033 IPCAAutopista Planalto Sul 412.7 5 n.a. feb/2033 IPCAAutopista Fluminense 320.1 5 n.a. feb/2033 IPCAAutopista Fernão Dias 562.1 8 n.a. feb/2033 IPCAAutopista Regis Bittencourt 401.6 6 n.a. feb/2033 IPCAThis release contains forward-looking statements relating to the prospects of the business, estimates foroperating and financial results, and those related to growth prospects of OHL Brasil. These are merelyprojections and, as such, are based exclusively on the expectations of OHL Brasil’s managementconcerning the future of the business and its continued Access to capital to fund the Company’sbusiness plan. Such forward-looking statements depend substantially on changes in market conditions,government regulations, competitive pressures, and the performance of the Brazilian economy and theindustry, and are, therefore, subject to change without prior notice.
  17. 17. 3Q08 Earnings Release November 13, 2008 Page 17 of 24ANNEX 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/9MGROSS 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/aGROSS 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/aAMORTIZATION 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. 18. 3Q08 Earnings Release November 13, 2008 Page 18 of 24ANNEX 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. 19. 3Q08 Earnings Release November 13, 2008 Page 19 of 24ANNEX 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. 20. 3Q08 Earnings Release November 13, 2008 Page 20 of 24ANNEX 4 LOAN AND FINANCING OBRASCON HUARTE LAIN BRASIL S.A. LOANS AND FINANCING (CONSOLIDATED) - SEPTEMBER, 30 2008 (R$ Thousand)Creditors Charges Final Maturity Current NoncurrentAUTOVIAS 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 86Total 34,812 264,833CENTROVIAS 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 70,000Total 8,459 257,286INTERVIAS 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 5,957 347,225VIANORTE 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 154Total 29,519 61,381LATINA Banco Itaú BBA 11,5% per year June-2011 149 247 Unibanco TJLP + 1,75% per year May-13 163 1,434Total 312 1,681AUTOPISTA PLANALTO SUL Banco Votorantim – Finame TJLP + 2,60% per year June-13 - 196Total - 196Total Amount 79,059 932,602
  21. 21. 3Q08 Earnings Release November 13, 2008 Page 21 of 24ANNEX 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 UnadjustedNET SERVICE REVENUE 203,634 171,441 169,310 - 169,310COST 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) 89,733OPERATING (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) 41,136NON OPERATING INCOME 434 1,091 641 - 641INCOME BEFORE INCOME AND SOCIAL CONTRIBUTION TAXE 48,275 30,570 42,451 (674) 41,777INCOME 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 UnadjustedNET SERVICE REVENUE 531.087 449.133 - 449.133COST 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 - 84GROSS PROFIT 284.404 219.565 (8.242) 211.323OPERATING (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 89.643NON OPERATING INCOME 1.844 1.505 - 1.505INCOME BEFORE INCOME AND SOCIAL CONTRIBUTION TAXES 99.471 88.775 2.373 91.148INCOME 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

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