04. BUSINESS DIVISIONS

Services: Valoriza

BUSINESS SUMMARY

Valoriza, Conservación de Infraestructuras

Valoriza Gestión is the parent company within the Sacyr Vallehermoso Group's services division, providing general management services for this area. The Valoriza Group has demonstrated strong, dynamic growth in recent years, underpinned by a corporate restructuring and the development of its businesses.

a.- Environmental initiatives

The difficult situation faced by local governments has led to a downturn in revenue from urban services, translating into fewer tenders and a decline in services rendered for city councils. The long-standing nature of most contracts has improved the Ebitda and profit-after-tax margins of most projects. The greatest problem is the high degree of indebtedness of local governments and their difficulties with meeting their payment obligations. Attempts have been made to deal with these issues in two ways: by entering into contracts only with city councils that have a healthy financial situation, and by terminating contracts that might entail problems stemming from defaults.

Revenue in 2011 totalled 326 million of euros, with Ebitda at 52 million of euros, 20% higher than the previous year, and after-tax profit at 12.7 million of euros, a 15% improvement on 2010. The works and services backlog came to 2,690 million of euros.