03. The Sacyr Vallehermoso Group

The group in figures: summary of the main financial indicators

Informe Responsabilidad Corporativa 2011

SyV’s results at 31 December 2011 show strong Ebitda generation by the Group’s business, underpinned by efficient management of costs and investments and endeavours to reduce corporate debt.

Thus, despite the fall in revenue caused by the adverse economic environment, the performance in Ebitda was positive, with a gross margin of 13.5% compared to 11.9% in 2010. Ebitda totalled 533 million of euros, a decline of just 6.7%, compared to the 18.1% drop in revenue. This was achieved thanks to the positive performance in Services (+6%) and Concessions (+49%), stability in the Rental Property activity (+2%) and a more normal performance in Residential Development (+2%).

Revenue

The backlog remains high because of the Group’s intense tendering activity and the increasing internationalisation of its businesses, as evidenced by the fact that 62% of the backlog is abroad.

Group revenue at 31 December 2011 was 3,949 million of euros.

This was 18.1% lower than in 2010 owing to the downturn in residential development and construction, although the decline in construction was offset by increased activity abroad.

The breakdown of revenue by business area is as follows:

CIFRA DE NEGOCIOS (Miles de Euros)

Revenue from the Construction business was 2,439 million of euros at 31 December 2011, with international revenue representing 49%. The slowdown in domestic construction led to a decrease in revenue compared to the previous year. The construction backlog stood at 6,681 million of euros, of which 77% relates to projects abroad. This high order book guarantees the future performance of this business.

In the Services business the strong pace of growth seen in previous periods continued in 2011 even though the comparison with 2010 is distorted by the large one-off impact relating to the execution schedule for water projects resulting from the conclusion in 2011 of the first phase of the Perth desalination plant. This effect will be corrected in coming quarters by the contribution of revenue from the desalination plant in Israel and the recently-awarded expansion of the Perth plant.

The Environmental and Multi-services businesses grew by 8% and 4% respectively.

The total value of property transfer deeds signed in the Residential development business in the year was 180 million of euros, with 577 homes delivered, a very positive figure given the current market situation.

Revenue in the Concessions business included two components: concession revenue and accounting income from construction. Concession revenue was up 62.1% in 2011, driven by two factors:

- The healthy performance of concessions and the opening of some that were under construction in 2010 (the M-50 motorway in Ireland, the Vallenar- Caldera motorway, Braga hospital and revenue contributed by the Arlanzón motorway). The Málaga-Las Pedrizas motorway, which opened at the end of 2011, will begin to contribute to revenue in 2012.

- In 2010, the four concessions in which Eiser holds a 49% stake did not contribute revenue from January to June, as they were recognised as assets held for sale.

Revenue from the Rental property business amounted to 251 million of euros, in line with the previous year’s figure, underlining the stability and recurrent nature of this revenue. Of the total, 245 million of euros related to rental income on investment properties in operation and the remaining 6 million of euros to property management services and other income.

CIFRA DE NEGOCIOS (Miles de Euros)

International activity

Revenue from the International Activity accounted for 37% of the SyV Group’s total revenue in 2011 and included projects in Panama, Italy, Chile, Ireland, Australia, Angola and Cape Verde. This percentage will continue to increase in the future given the large international component of the backlog. International revenues were broadly unchanged in 2011 from the previous year, as high-impact projects were delivered in 2010. However, in 2012, growth will tend to rise as projects in the pipeline begin to contribute to revenue.

By geographical area, 33% of international revenue was generated in Portugal; 16% in Angola (construction work carried out by Somague and services rendered by Valoriza); 16% in Italy (construction work carried out by SIS); 12% in Panama (expansion work on the Canal); 8% in Chile (construction for the concessions awarded) and 2% in Australia (generated by Valoriza Water). The remaining 13% relates mainly to activities in Ireland, Costa Rica, Cape Verde and Brazil, and to the rental of properties run by Testa in Miami and Paris.