Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V.

                           and Subsidiaries

                   Consolidated Statement of Income

            (Amounts expressed in thousands of US dollars)

 

 

                          Three months ended     Twelve months ended

                             December 31,            December 31,

                        ----------------------- ----------------------

                             2004       2003         2004      2003

                        ------------ ---------- ----------------------

                        (Unaudited)  (Audited)  (Unaudited)  (Audited)

                        -----------  ---------  -----------  ---------

Transportation revenues    173,523    175,163      700,438    698,528

                        -----------  ---------  -----------  ---------

 

Operating expenses        (116,976)  (121,165)    (482,049)  (479,968)

Depreciation and

 amortization              (22,482)   (21,894)     (88,375)   (86,554)

                        -----------  ---------  -----------  ---------

Total cost                (139,458)  (143,059)    (570,424)  (566,522)

                        -----------  ---------  -----------  ---------

 

Operating profit            34,065     32,104      130,014    132,006

                        -----------  ---------  -----------  ---------

 

Other expenses - net        (3,067)   (10,278)     (10,607)   (35,382)

                        -----------  ---------  -----------  ---------

 

Financial expenses - net   (27,529)   (27,729)    (111,458)  (111,132)

Exchange profit (loss)

 - net                       2,234     (3,576)         429    (13,695)

                        -----------  ---------  -----------  ---------

Net comprehensive

 financing cost            (25,295)   (31,305)    (111,029)  (124,827)

                        -----------  ---------  -----------  ---------

 

Income (loss) before

 taxes and minority

 interest                    5,703     (9,479)       8,378    (28,203)

    

Income tax and deferred

 income tax                 (1,531)     4,890       14,007    (32,890)

                        -----------  ---------  -----------  ---------

Income (loss) before

 minority interest           4,172     (4,589)      22,385    (61,093)

 

Equity method in

 Mexrail Inc.               (2,043)         0       (2,805)         0

Minority interest             (553)       906       (4,258)    12,154

                        -----------  ---------  -----------  ---------

Net income (loss) for

 the period                 $1,576    ($3,683)     $15,322   ($48,939)

                        -----------  ---------  -----------  ---------

 

 

The consolidated financial statements were prepared in accordance with

International Financial Reporting Standards.

 

 

 

 

 

        Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V.

                           and Subsidiaries

                      Consolidated Balance Sheet

            (Amounts expressed in thousands of US dollars)

 

 

                                                Dec. 31,     Dec. 31,

                                                  2004         2003

                                              (Unaudited)   (Audited)

                                              -----------  -----------

Assets

Current assets

     Cash and cash equivalents                   $14,245       $3,597

     Accounts receivable - net                   182,388      188,435

     Materials and supplies                       21,738       16,693

     Other current assets                          9,548       13,157

                                              -----------  -----------

               Total current assets              227,919      221,882

Concession, property and equipment - net       1,722,029    1,814,668

Other assets                                       6,126        2,857

Deferred income tax                               99,683       78,845

                                              -----------  -----------

Total assets                                  $2,055,757   $2,118,252

                                              -----------  -----------

 

Liabilities and stockholders' equity

Current liabilities

     Commercial paper and capital

       lease due within one year                 $65,135     $193,154

     Accounts payable and accrued expenses       147,044      163,749

                                              -----------  -----------

               Total current liabilities         212,179      356,903

     Long-term debt and capital lease

      obligation                                 817,914      746,745

     Other non-current liabilities                25,204       33,724

                                              -----------  -----------

               Long-term liabilities             843,118      780,469

                                              -----------  -----------

Total liabilities                              1,055,297    1,137,372

                                              -----------  -----------

Minority interest                                321,732      317,475

                                              -----------  -----------

Stockholders' equity

     Capital stock                               807,008      807,008

     Treasury shares                            (204,904)    (204,904)

     Effect on purchase of subsidiary shares     (33,562)     (33,562)

     Retained earnings                           110,186       94,863

                                              -----------  -----------

                Total stockholders' equity       678,728      663,405

                                              -----------  -----------

Total liabilities and stockholders' equity    $2,055,757   $2,118,252

                                              -----------  -----------

 

 

The consolidated financial statements were prepared in accordance with

International Financial Reporting Standards.

 

 

 

 

 

        Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V.

                           and Subsidiaries

                 Consolidated Statement of Cash Flows

            (Amounts expressed in thousands of US dollars)

 

 

                          Three months ended     Twelve months ended

                        ----------------------- ----------------------

                             December 31,            December 31,

                        ----------------------- ----------------------

                             2004       2003         2004      2003

                        (Unaudited)  (Audited)  (Unaudited)  (Audited)

                        ----------- ----------- -----------  ---------

Cash flows from

 operating activities:

Net income (loss) for

 the period                 $1,576    ($3,683)     $15,322   ($48,939)

                        -----------  ---------  -----------  ---------

Adjustments to reconcile

 net income (loss) to

 net cash provided by

 (used in) operating

 activities:

     Depreciation and

      amortization          22,482     21,894       88,375     86,554

     Amortization of

      deferred financing

      costs                  1,674      1,609        6,672      6,413

     Other non cash item    (4,153)    (5,483)     (16,492)    24,015

     Changes in working

      capital - net        (11,613)    12,672       (8,185)    31,621

                        -----------  ---------  -----------  ---------

     Total adjustments       8,390     30,692       70,370    148,603

                        -----------  ---------  -----------  ---------

Net cash provided by

 (used in) operating

 activities                  9,966     27,009       85,692     99,664

                        -----------  ---------  -----------  ---------

Cash flows from

 investing activities:

     Proceed from sale

      of Mexrail's

      shares before

      taxes                      0          0       27,147          0

     Acquisitions of

      property and

      equipment - net       (7,528)   (22,118)     (41,143)   (73,121)

     Sale of equipment          42        624          420      2,390

                        -----------  ---------  -----------  ---------

Net cash provided by

 (used in) investing

 activities                 (7,486)   (21,494)     (13,576)   (70,731)

                        -----------  ---------  -----------  ---------

Cash flows from

 financing activities:

     Proceeds payments

      of commercial

      paper - net                0    (10,000)      10,000    (37,000)

     Proceeds payments

      of term loan - net         0          0      (71,129)   (18,287)

     Principal payments

      under capital

      lease obligations        (23)      (298)        (339)      (298)

                        -----------  ---------  -----------  ---------

Net cash (used in)

 provided by financing

 activities                    (23)   (10,298)     (61,468)   (55,585)

                        -----------  ---------  -----------  ---------

Increase (decrease) in

 cash and cash

 equivalents                 2,457     (4,783)      10,648    (26,652)

Cash and cash

 equivalents

     Beginning of period    11,788      8,380        3,597     30,249

                        -----------  ---------  -----------  ---------

     End of period         $14,245     $3,597      $14,245     $3,597

                        -----------  ---------  -----------  ---------

 

 

The consolidated financial statements were prepared in accordance with

International Financial Reporting Standards.