The OHL Group Raises its Net Income by 19.9% During the First Nine months of 2010

The OHL Group has closed the third trimester of 2010 with very satisfactory results. These are reflected in the 19.9% growth of its net income attributable to shareholders, which has gone up to 120.6 million euros in the first nine months of the year.

This increase in profit was obtained following a 7.3% increase in sales, which have reached 3,343.4 million euros. The EBITDA has grown 34.0% reaching 656.1 million euros, and the EBIT 30.3% reaching 455.2 million euros.

These excellent results, achieved during a climate of recession, above all at a national level, were made possible thanks to the significant push in internationalisation and diversification carried out by the OHL Group.

It has primarily been the activities of Concessions and International Construction that have brought about these results. These divisions have achieved growths in turnover of 49.7% and 12.7% respectively; and in EBITDA, 54.0% and 22.1%. On the other hand, National Construction has continued to suffer the massive cuts in public spending on infrastructures and its sales figures and EBITDA have dropped -21.6% and -22.9% respectively.

Consequently the activity of the OHL Group outside Spain has produced 67.3% of the sales and 94.6% of the EBITDA during the first nine months of the year. This trend will continue in the future given that international activity contributes 91.6% of the Group’s order book in the long term and 56.4% in the short term.

In the geographic breakdown of the order book, Mexico and Brazil concentrate 51.5% and 31.6% respectively for that of the long term, due to the strong presence in the toll motorways sector in both countries. The international markets with the largest order books in the short term are the United States (14.4%), Mexico (11.7%), Qatar ( 11.2%) and Eastern Europe (9.7%).

OHL Mexico’s Listing on the Stock Exchange

It’s important to note that at the end of the close of the third trimester, the entry of Mexican concessions subsidiary OHL Mexico into the stock market was successfully completed. The OHL Group will maintain 70% of the shares, assuming that a greenshoe be exercised.

This operation became the largest entry into the Mexican market in the last 10 years and the third largest in the transport infrastructures sector in the last five years. With this action several important goals were achieved. Not only was an important base of local and international investors incorporated into OHL Mexico’s shareholders, but the OHL Group also achieved the following:

• Crystallise the value created in the Group’s investments in concessions in Mexico. The initial share price, 25 pesos per share, puts the value of OHL Mexico, before the increase in capital, at 1,661 million euros. This figure is 2.6 times the amount the Group invested in the company and it is above the estimation of 1,455 million euros given by the financial analysts in April 2010
• Provide OHL Mexico the necessary resources to independently complete its investment programme and its future development without relying on the parent company
• Obtain resources that reduce the indebtedness with recourse of the OHL Group by over 200 million euros, which would be raised to 330 million in the event of a greenshoe

Results by Division

OHL Concessions has achieved 785.7 million euros in sales, with an increase of 49.7% on the period in 2009, and its EBITDA has increased 54.0% reaching 475.9 million euros, a figure representing 72.5% of the Group’s total. A good rate of traffic on the toll motorways in operation, especially in Brazil and Mexico; the charge revisions; and the opening of new sections on the Mexican motorways: the Bicentenario Viaduct and the Mexican Outer Loop, are among the main reasons for this division’s excellent results.

OHL International Construction has maintained a high rate of growth, equating to an increase in turnover of 12.7%, reaching 1,401.0 million euros; and an increase of 22.1% in the operating margin EBITDA, which has gone up to 112.7 million. This growth has been primarily based on activity in the U.S.A. and Qatar, and on the good rhythm of execution of the projects connected to concessions in Mexico (the Mexican Outer Loop and the Bicentenario Viaduct).

National Construction’s activity remains heavily affected by the infrastructures investment cuts in Spain. Its sales, 937.1 million euros, have fallen 21.6% and the EBITDA, 22.9%, bringing it to 61.1 million. Even so, the 6.5% EBITDA margin on sales has improved to levels similar to those of a year ago.

Other activities – those of Industrial, Developments and Environmental – invoiced 219.6 million euros, with a growth of 44.7%. Worthy of note are the growths of 127.7% and 88.2% obtained by the Industrial and Developments divisions. These activities have contributed 6.4 million euros in EBITDA.

OHL Group January to September, 2010