This excerpt taken from the SBS 6-K filed Mar 30, 2006.
1. EBITDA margin recovery
EBITDA in 2005 totaled R$ 2,285.6 million, R$ 359.1 million more than in 2004, thanks to expressive growth in revenues versus costs.
Despite the substantial increase (64.2%) in COFINS/PASEP expenses, due to changes in the dutys rate and calculation basis as of September 2004, annual net income jumped by 68.7% from R$ 513.0 million, in 2004, to R$ 865.6 million. Part of this increase was due to the 11.8% appreciation of the Real in 2005, versus 8.1% the year before, but the hefty 66.2% rise in net income from operating results greatly contributed to this outcome.
ROE (return on equity) increased from 6.5% to 10.2%, while ROA (return on assets) climbed from 7.9% to 9.7% . 4Q05 EBITDA stood at R$ 618.2 million, 35.4% up year-on-year, while the corresponding EBITDA margin increased from 38.6% to 46.1% .