The OHL Group closes 2012 with the best results in its history

May 14, 2013

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On May 14, OHL held its 2013 General Shareholders’ Meeting at which with the backing of the Board of Directors its Chairman, Juan-Miguel Villar Mir, presented the 2012 balance sheet, which he described as “the best in the now 100 year history of OHL”, at a greatly difficult time for the economy as a whole and for the construction industry in Spain.

Juan-Miguel Villar Mir defined 2012 as a year of great transformation thanks to OHL’s entry into the concessionaire Abertis. Last December the Group, through its subsidiary OHL Concessions, finalized the transfer of 100% of Partícipes capital in Brazil, a company with a 60% share in the listed OHL Brazil, and the sale of the concessions in Chile. In accordance with the contract drawn up for this operation, OHL Concessions was granted a 10% share in Abertis, which also took on 504.1 million euros of debt from OHL and made a cash payment to the Group amounting to 241.7 million euros.

The Abertis operation has produced a positive and decisive transformation in the OHL Group, which as a result has managed to strengthen its concessions strategy, emerging as a benchmark shareholder, with a clearly long-term position, in Abertis, a global leader in international transport infrastructures after this operation. It was also able to capitalize on the value of its Brazilian and Chilean concessions, through generating a net capital gain of 1.0111 billion euros, to significantly reduce its debt (both total and with recourse) and as such, to notably strengthen its financial position. It is worth noting that in relation to the OHL investment in Abertis, OHL’s 15.3% share at the close of 2012 has now increased to 18.93%.

In the disinvestment chapter, it is important to note that the Group has proceeded with the sale of Inima, its environmental subsidiary, generating cash earnings of 190 million euros.

Net Attributable Profit exceeds 1 billion

In terms of financial figures, the EBITDA of the OHL Group grew by +38.1%; the net attributable profit increased by +350.3%, breaking the one billion barrier for the first time with a total of 1.0055 billion euros; and its recurring net profit also increased, registering growth of +16.5% and closing at 260.1 million euros. In turn, OHL turnover reached 4.0296 billion euros, +8.8% higher than the figure recorded in 2011. As an additional benefit, there was also a large increase in Net Attributable Equity, which grew from 1.2157 to 2.1352 billion euros; a notable rise of +75.6%.

Furthermore, it is worth noting that in 2012 the Group returned to creating jobs; 7.4% in Spain and 10.1% in the Group as a whole.

OHL Concessions

These results have been driven by the activities of OHL Concessions. The Group concessions have returned to registering important increases in activity with a 34.3% growth in sales, reaching 642.5 million euros, and a 59.1% growth in EBITDA, reaching 749.0 million euros. This increase can be specifically attributed to the growth of concessional activity in Mexico, which currently accounts for 76% of the division’s total portfolio. In addition, the EBITDA generated by the concessions division accounts for 71.1% of the OHL Group.

With regards to its portfolio, this OHL Group division manages a total of 17 concessions, distributed across 11 highways totaling 848 km, two railways, one airport and three ports, in one of which, the Port of Valparaíso, the Group has recently secured the new terminal 2 contract. This operation positions Mexico as one of the Group’s strategic markets, alongside Peru and Spain, to which it is important to unite the priority interest in the USA and Colombian markets.

OHL Construction

For another consecutive year the OHL Construction division, specializing in the execution of large projects of significant added value in the railway, hospitals and smart buildings sectors, has consolidated OHL’s position as a global company, with a presence in 28 countries on five different continents.

In 2012 the construction portfolio increased to 8.1067 billion euros, a volume representing three years of sales. Thanks to its operations abroad, the OHL Group has grown from a medium-sized national construction company in 2002, when its current strategy began, to the large international Group it is today, with Spain accounting for little more than a fifth of the construction portfolio.

This expansion positions the Group amongst the largest international construction companies, leaders in the execution of highly specialized, large-scale construction projects, such as the Ural Polar railway system (Russia), the largest OHL contract in the history of the Group; the expansion of the Toronto metro; the construction of the CHUM (Centre Hospitalier de l’Université de Montréal) hospital in Canada; the Marmaray Project (Turkey), which will cross the Strait of Bosporus and provide a modern rail connection between Asia and Europe; the execution of the Water mains for shaft, the first contract won by the Group in New York, and it is also set to participate in the La Meca-Medina railway project, the first civil works contract won by Spanish companies abroad.

In turn, OHL Industrial and OHL Development also closed the year on a positive note by contributing 16.1% of sales, which grew by 81.6%. The EBITDA of both these divisions registered a notable increase of 1,330.6%.

RDI as a focal point

Internationalization together with RDI activities are the two cornerstones of OHL growth. Within this last chapter and as an important milestone in 2012, the Cubipod provides an innovative example of an artificial armor block for breakwaters which, to date, has been used in two Group projects: on the San Andrés breakwater at the Port of Malaga; and in the first phase of the breakwater at the off-shore port of Langosteira in A Coruña. This initial use of the Cubipod has reduced costs and generated great expectations for its progressive use on a global scale.

Over the past financial year, important milestones have also been reached in terms of sustainability. The Group has retained its presence, for the fourth consecutive year, on the FTSE4Good Ibex index, which defines the company’s social commitment and special interest for investors who, alongside their profitability targets, also concerned by ethical, social and environmental issues and with Good Governance in business management. In addition, the Group has obtained a “High” rating in the Carbon Disclosure Project (CDP) 2012 index and was a member, for the second consecutive year, of the exclusive Carbon Disclosure Leadership Index group.

Furthermore, the Mayakoba project achieved a “5 diamonds” classification, the highest rating granted by the American Automobile Association (AAA). It also received a favorable report from the Mexican Government Procuraduría Federal de Protección al Ambiente (PROFEPA), which positioned the Group as an important global role model amongst the most sustainable, eco-friendly and highest quality tourist destinations.

Future policies

OHL will continue to focus on the infrastructures concession. Therefore, together with the countries described above as of key importance for OHL Concessions, the USA and Colombia will also be considered as of top priority.

With regards to construction, the Group will continue to focus on civil works and single buildings, favoring countries with a greater capillarity such as Central and Eastern Europe, the USA, Canada and Spain.

On the other hand, in the industrial sector, the Group plans to center its growth on the design and construction of turnkey industrial plants and, with regards to OHL Development, will continue to focus on the promotion and implementation of maximum quality, global-level projects in popular tourist destinations and areas of cultural interest.

In financial terms and in line with the strategy outlined in 2002, Juan-Miguel Villar Mir declared that “the policy of discipline and financial security will be maintained”.

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