US$75000000 Lupatech Finance Limited - Banco Best

The following table shows our net revenues and EBITDA for our segments in the indicated periods:
Three-month period ended March 31, Year ended December 31,
2008 2008 2007 2007 Pro Forma 2007 2007 2006 2005
(in millions
(in millions
of US$,
of US$, (in millions of (in millions of
except
percentages)
(in millions of reais, except
percentages)
except
percentages)
reais, except
percentages)
US$, except
percentages)
(in millions of reais, except
percentages)
Net revenue.... 80.0 140.0 67.3 262.0 458.3 221.3 387.0 223.6 173.2
Oil & gas
segment ...... 59.7% 59.7% 25.7% - - - - - -
Flow segment
................... 26.4% 26.4% 46.8% 81.6% 81.6% 78.3% 78.3% 66.9% 62.5%
Metal
segment ...... 13.9% 13.9% 27.5% 18.4% 18.4% 21.7% 21.7% 33.1% 37.5%
Adjusted
EBITDA (2) .... 19.4 33.9 18.5 64.0 112.0 54.9 96.0 59.5 49.6
Oil & gas
segment ...... 59.8% 59.8% 28.1% - - - - - -
Flow segment
................... 35.8% 35.8% 61.1% 95.8 95.8% 95.4% 95.4% 83.2% 86.9%
Metal
segment ...... 4.4% 4.4% 10.8% 4.2% 4.2% 4.6% 4.6% 16.8% 13.1%
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(1) Adjusted EBITDA means income before net financial expenses, income tax and social contribution, depreciation and amortization, nonoperating
results and non-recurring expenses. Adjusted EBITDA is not a measure defined under Brazilian GAAP, does not represent cash
flow for the periods indicated and should not be regarded as a replacement for net income as an indicator of the performance of our
operations or as a replacement for cash flow as an indicator of liquidity. Adjusted EBITDA has no standardized meaning and our definition
may not be comparable to adjusted EBITDA as used by other companies. We use adjusted EBITDA as defined in this offering circular for
purposes of measuring our performance. See “Management’s Discussion and Analysis of Financial Conditions and Results of Operations—
Adjusted EBITDA” for the calculation of adjusted EBITDA.
The chart below shows certain of our indebtedness information for the periods indicated:
As of and for the three-month period ended
March 31, As of and for the year ended December 31,
2008 2008 2007 2007 2007 2006 2005
(in millions
of US$) (in millions of reais)
18
(in millions
of US$) (in millions of reais)
Total indebtedness........................... 404.0 706.6 249.9 381.0 666.5 261.3 38.4
Total cash and banks and marketable
securities.......................................... 99.3 173.6 179.5 136.5 238.3 204.2 30.6
Indebtedness, net ............................. 304.7 533.0 70.4 244.8 428.1 57.1 7.8
Adjusted EBITDA........................... 19.4 33.9 18.5 54.9 96.0 59.5 49.6
Net Indebtedness/Adjusted
EBITDA (1) ....................................... 4.8x 4.8x 1.1x 4.5x 4.5x 1.0x 0.2x
___________________
(1) With respect to the three-month periods ended March 31, 2007 and 2008, the net indebtedness to adjusted EBITDA ratio has been obtained
by dividing net indebtedness as of March 31, 2007 and 2008, respectively, by adjusted EBITDA for the twelve-month periods ended
March 31, 2007 and 2008.
For further information on our indebtedness, see “Management’s Discussion and Analysis of Financial
Conditions and Results of Operations—Indebtedness” and note 10 to each of our interim and annual financial
statements included elsewhere in this offering circular.