Profit from recurring activity (without the Brazilian and Chilean concessionary assets) increased by 16.5%, with 260.1 million euros.

• Profit from recurring activity (without the Brazilian and Chilean concessionary assets) increased by 16.5%, with 260.1 million euros.
• International trade accounted for 66.8% of sales and 81.7% of EBITDA
• OHL Construction’s 8.1067 billion euro portfolio covers 33 months of sales, guaranteeing the future growth of this division
• Significant reduction of consolidated leverage, from 5.1x to 4.0x and of net recourse debt (53%), closing at 588.8 million euros

The OHL Group has closed 2012 with some very satisfactory results, both in terms of its recurring activity and the extraordinary operations carried out during the year: agreements with Abertis (swap of concessionary assets in Brazil and sale of those in Chile) and the sale of OHL Medio Ambiente Inima.

These corporate operations have generated a significant net capital gain of 1.0513 billion euros, of which 1.0111 billion corresponds to the agreements with Abertis and 40.2 million to the sale of Inima to the Korean GS Group for 231 million. On the other hand, the OHL Group chose to make extraordinary provisions and write-offs to a net total of 305.9 million euros.

With all this, evolution of recurring activity (without the Brazilian and Chilean concessionary trade) and extraordinary results, the growth achieved in the main categories of the 2012 OHL income statement, in uniform comparison with 2011, has been as follows:

• Sales: 4.0296 billion euros, + 8.8%
• EBITDA: 1.0529 billion euros, +38.1%
• EBIT: 829.8 million euros, +33.3%
• Net Attributable Profit: 1.0055 billion euros, +350.3%
• Recurring Net Attributable Profit: 260.1 million euros, +16.5%

Recurring Activity

The previous information reflects a very positive evolution of recurring activity for OHL, in which international trade remains highly significant within the Group; accounting for 66.8% of sales and 81.7% of EBITDA despite not yet including the Brazilian and Chilean concessionary assets.

The foreign markets that made the greatest contribution to OHL sales in 2012 were Mexico (20.1%), the USA and Canada (17.3%), Central and Eastern Europe (12.3%), the Middle East and North Africa (9.9%) and others, 7.2%. Spain represented 33.2% of trade.

In the field of recurring activity, the OHL Concessions division, which accounted for 15.9% of Group sales and 71.1% of EBITDA, has been the main driver of the Group’s results, achieving 34.3% and 59.1% growth in sales and EBITDA, respectively.

The strong evolution of traffic and rates in the main concessions in operation has been the most positive factor in this division’s growth.

OHL Construction, which generated 68.0% of Group sales and 24.0% of EBITDA, recorded a slight fall in sales (4.5%) and EBITDA (12.4%). This was due to the completion in 2011 of several projects with a positive effect on margins, the 31.4% decline of trade in Spain in 2012 and because the impact of the large international contracts in the portfolio had not yet materialized on the income statement.

In any case, the OHL Construction portfolio reached 8.1067 billion euros, of which 2.1014 billion corresponds to contracts secured in 2012, including the Sochi Olympic Flame sport-tourism complex in Russia, and the New York Water Mains for Shafts in the USA, totaling 592.9 million euros.

This portfolio covers around 33 months of sales, guaranteeing the future growth of OHL construction activity. Furthermore, its geographical distribution reflects an important international weighting: Central and Eastern Europe, 30.9%; Spain, 21.6%; the USA and Canada, 19.7%; the Middle East and North Africa, 19.6%, and others, 8.2%.

With regards to the trade of other activities (OHL Industrial and OHL Developments divisions), the sales figures for the same totaled 648.8 million euros, signaling growth of 81.6% compared to 2011. This is thanks to the significant drive of the OHL Industrial division and the occasional sale of land by the OHL Development division. The joint EBITDA of these activities were 51.5 million euros.

Operations with Abertis

The agreements with Abertis regarding OHL concessionary assets in Brazil (OHL Brasil) and Chile came into effect in December 2012 and constituted the most notable capital of the Group’s extraordinary operations.

The operation regarding Brazilian assets consisted of swapping 100% of Participes en Brasil capital, a company with a 60% share in the listed company OHL Brasil, in exchange for 10% of Abertis, the assumption of liabilities of OHL Concessions with Partícipes en Brasil for the sum of 504.1 million euros, a 10.7 million euro payment and another of 26.9 million euros corresponding to the 2012 intermin dividend allocated by Abertis in connection to these shares.

This 10% shareholding, plus the additional purchase of shares increased OHL’s share in Abertis to 15.24% at the close of 2012.

The agreements with Abertis have led to a significant and positive transformation in the OHL Group, which as a result of the same has managed to:

• Strengthen its concessions strategy, becoming a benchmark industrial partner and shareholder with a clearly permanent agreement with Abertis, the biggest concessionary company in the world after these operations.
• Capitalize on the value generated in the Brazilian and Chilean concessions, producing a net capital gain of 1.0111 billion euros.
• Achieve an important reduction of its debt (both global and with recourse), thereby notably improving its financial position.
• Balance and diversify its concessions portfolio, incorporating clearly complementary assets (more mature and in other regions) that provide a very relevant and stable flow of dividends.

Financial Policy

In financial terms, the 300 million euro issue of bonds in the Euromarket in March and the forward start facility signed in April, afforded OHL two significant improvements to the recourse debt maturities calendar, which will not present any relevant obligations until 2015. These operations highlight the prestige achieved by OHL and the support which it enjoys in the international capital markets and amongst financial entities, even in these very difficult times.

On the other hand, in December, OHL Emissions (100% affiliate of OHL Concessions) obtained a three-year non-recourse loan with the sole guarantee of the Abertis shares. At the close of 2012, the first 476 million euros were made available, corresponding to the collateral of 10.24% of the Abertis shares held by OHL at that time. Subsequently, in January 2013, after the existing equity swap for 5% of Abertis and the firm purchase of the same, this shareholding was incorporated as collateral to the loan, releasing the additional 324 million euros, upon which the total amount of 800 million euros was reached. The funds generated by this loan have been allocated by OHL Concessions to the firm purchase of 5% of Abertis and to supplying its parent company with OHL funds (via dividends and intra-group credit) to reduce its recourse debt.

As a result of all the above and in line with the targets outlined in its financial policy, in 2012 the OHL Group managed to significantly reduce its consolidated leverage and net recourse debt. The first, expressed in terms of net debt/EBITDA, has dropped from 5.1x to 4.0x and the second has been reduced by 53%, closing 2012 at 588.8 million euros.

OHL Group Results 2012