OHL raised its net profit by 14.2% in 2011

The OHL Group has ended the 2011 financial year with excellent results, particularly in light of the difficult economic scenario. Of interest are the sharp 23.0% and 40.0% increases in its EBITDA and EBIT operating margins, respectively, and its 14.2% increase in attributable net profits, reaching 223.3 Million Euros. Sales have grown by 2.1% and have reached 4,869.8 Million Euros.

The Group’s international activity has generated 70.4% of the turnover figure and 89.1% of the total EBITDA. The greatest contribution to sales from foreign markets came from Brazil (23.3%), Mexico (13.6%) and the U.S. (10.6%). In terms of EBITDA, Mexico generated 38.1% and Brazil 35.2%.

Once again, the OHL Concessions division has boosted the Group’s annual results, thanks to its positive performance, registering a 9.1% increase in sales and a 24.2% and 40.8% increase, respectively, in EBITDA and EBIT. These increases have boosted the Division’s leading role in the Group even more, contributing 76.1% of EBITDA and 81.3% of EBIT in 2011.

A global increase in traffic and updated tariffs in ongoing motorway concessions have had the largest positive impact on OHL Concessions’ results. In 2011, amongst others, two new sections of Circuito Exterior Mexiquense and the first two sections of Autopista Urbana Norte (also in Mexico) were opened to the traffic, as well as toll motorway units in Monasterio (belonging to the Autopista Los Andes concessionaire in Chile) and Fortaleza (Autopista del Norte in Peru).

In turn, in the OHL Construction division, the most outstanding event has been the nearly 4,000 Million Euro addition to its portfolio thanks to the award of the following six large international contracts: Ural Polar project (Obskaja-Salechard-Nadym railway line) in Russia; CHUM Hospital in Montreal and extension of the Toronto subway in Canada; railway tunnels in the Sea of Marmara (under the Bosphorus strait) in Turkey; Mecca-Medina high-speed railway in Saudi Arabia; and the urban viaduct of the city of Kuwait.

These projects, amongst others, have raised the OHL Construction portfolio to 8,741 Million Euros- the Group’s historical maximum- representing 1.6x the final figure for 2010 and 36 months of sales. Of interest is the portfolio’s specialization in railway and hospital projects, as well as its diversified and balanced distribution by geographical areas: Central and Eastern Europe, 24.3%; Middle East and North Africa, 23.4%; Spain, 23.4%; U.S.A. and Canada, 18.8%; and others, 10.1%.

The Construction division still bears the greatest weight in the Group’s sales, with 58.9% of the total. However, its turnover figure fell by 6.7% in 2011, following a 1.6% increase in international figures and an 18% fall in Spain, where the election process had an effect on activity in the last quarter. Despite this fall in sales, EBITDA and EBIT registered a notable 19.9% and 34.9% increase, respectively, due to improved margins in several contracts at the completion stage.

As regards other activities, last November an agreement was reached to sell Inima to the Korean company GS Engineering & Construction Corporation and, consequently, the OHL Environment division is now registered as an interrupted activity in the accounts and no longer affects sales, EBITDA and EBIT, both in 2011 and 2010. In this way, the final figure of sales from other activities (OHL Industrial and OHL Development) reached 357.3 Million Euros, with a 86.3% growth, thanks to the huge boost of the OHL Industrial division, with a 3.5 multiplication of its turnover figure. The overall EBITDA of these activities is 3.6 Million Euros.

Decrease in debt with recourse

Of particular relevance is the huge effort made by OHL in 2011 to reduce its indebtedness. Net debt with recourse at the end of the year was 1,256.5 Million Euros, actually reduced to 1,025.5 Million thanks to the funds contributed by the sale of Inima (231 Million Euros).

As a result, we have achieved our objective of a 3x reduction in the ratio of net indebtedness with recourse over EBITDA (3.5x at the end of 2010), thanks to:

• 350 Million Euro operations of leverage without recourse in OHL Concessions, endorsed with part of OHL Mexico’s shares, in order to return funds to the parent company
• Divestment in non-strategic assets (mainly Inima)
• OHL Concessions’ financial independence as regards investments

The ratio of total net debt (with and without recourse) over total EBITDA has also been reduced 4.0x (pro forma, including the sale of Inima), from 4.4x registered at the end of the 2010 financial year.

Finally, as regards the financial chapter, of significance is the positive situation of debt maturity- after our early funding in March 2011 of the 2012 maturity, with a new bond issue of 425 Million Euros- and the high and stable position of liquidity with recourse, reaching 1,465 Million Euros between available facilities and treasury.

Thanks to all these events and figures the OHL Group has a positive outlook towards the future and is certain that significant growth will continue in its main activities, based on its solid financial position. The Group expects to obtain a more than 10% growth rate over the 2012 financial year, both in sales and EBITDA and net profit.

OHL results 2011