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Results Presentation 1H12 January-June 2012
Results
Presentation
1H12 January-June 2012
1. Key Events 2. Highlights 3. Performance by Activity 4. Financial Statements 5. Order Book 6. Share Price Performance
CONTENTS
1T 2004
1 1H 2012
1. Key Events
• Macroeconomic Overview The first half of 2012 has been a very difficult period for the world economies. Tensions in the financial markets became more acute, with the principal risk premiums at record highs (the Spanish 10-year bond rose above the 7% threshold) and driving economies, such as the Spanish economy on the 25th of June, to formally apply to Europe for the recapitalisation of banking institutions with European money. As a result, the economic forecasts from the principal world institutions have been revised downward in the last few weeks. The International Monetary Fund expects world GDP in 2012 to attenuate its growth from +3.9% in 2011 down to +3.5%, and then to recover +3.9% growth in 2013. Moreover, according to the IMF, as was the case in 2011, growth will come from the developing economies, although to a lesser extent. Thus, the outlook for Latin America is a growth rate of +3.4% (-0.3 p.p. vs. latest forecasts), to which Brazil is expected to contribute +2.5% (-0.5 p.p.) and Mexico +3.9%. Growth figures of +2% and -0.3% are predicted for the U.S. and Europe, respectively. The growth forecast for the Spanish economy in 2012 is -1.5% (GDP in the first quarter was down -0.3%), according to the most recent Government estimates, which are aligned with the IMF. For 2013, the expected decline will be -0.6%.
2 1H 2012
• Group Performance Despite the complicated macroeconomic situation, the OHL Group obtained highly satisfactory results during the first half of 2012. The growth registered in the principal figures of the Profit and Loss Account compared to the first half of the previous financial year was as follows:
- Sales: +12.7% - EBITDA: +33.4% - EBIT: +37.2% - Attributable Net Profit: +55.6%
On the operating level, once again the primary engine driving the results of the Group has been the Concessions area, which obtained growth figures of +16.3% and +38% in Sales and EBITDA, respectively, in this first half of the year. With these figures, Concessions accounts for 37% of Sales, 80.2% of EBITDA and 85.3% of EBIT. The Construction activity, which accounts for 51.6% of the Group’s sales, also grew -at a more moderate rate- with +3.2% and +7.8% in Sales and EBITDA, respectively. The weight of the international activity in the Group during the first half of 2012 represented 73.5% in Sales and 90.8% of EBITDA. The breakdown by geographical area of the Group’s Sales in the first half of the year is set out below:
Country %Sales - Spain 26.5% - Brazil 23.3% - Mexico 15.7% - U.S.A. & Canada 13.7% - Central & Eastern Europe 9.1% - Qatar 3.7% - Others 8.0%
The Group ended the first half of the year with a construction order book worth 8,539.4 million euros and with a significant component of major international contracts, among which the following stand out: the Obskaja-Salechard-Nadym Railway Line in Russia, the Chum Hospital in Montreal (Canada), the Marmaray Tunnels in Turkey and the Mecca-Medina High-Speed Rail in Saudi Arabia. The construction order book in Spain accounts for only 21.2% of the total. A recent highlight is the award in Russia of the Olympic Flame, a tourist-sports complex which will be the venue for the competitions and will accommodate the participants in the 2014 Winter Olympic Games, worth 410.8 million euros. The sale of Inima, OHL’s Environment subsidiary to the Korean Group, GS, was concluded on the 31st of May, for the amount of 231 million euros. This transaction is set in the framework of disinvestment plan for in non-strategic assets designed to reduce recourse debt and has delivered a net capital gain of 42.5 million euros. In terms of the Group’s financial situation, the substantial improvements obtained in the recourse debt maturity profile are particularly significant and are the outcome of the policy of continuous optimisation of such debt, thanks to the recent bond issues and the refinancing of the syndicated loan. Both transactions demonstrate the prestige attained by OHL and the continuity of the support of the international capital markets and the financial entities, even in these more difficult times.
3 1H 2012
A new bond issue was made in the month of March in the amount of 300 million euros and was very successfully placed among European investors. This issue coupon accrues 7.625% interest (noticeably lower than that of the issue made in 2011) and matures in 8 years (March 2020). The purpose of the issue was to partially pre-finance the maturity in 2015 of 700 million of the issue placed in 2010, by means of a buy-back offer which was taken up to the extent of 176.3 million euros Likewise, a Forward Start Facility was signed in April, increasing the amount of the syndicated loan from 240 to 300 million euros and extending its maturity for an additional 3 years up to January 2016, thereby becoming consolidated as an instrument capable of providing long-term flexibility to the Group’s financial structure. Seventeen entities participated in the transaction, and the syndication process was successfully completed, after receiving offers in excess of the amount sought. On 24 April 2012, OHL and Abertis signed a Memorandum of Understanding providing for a corporate reorganisation, whereby Abertis would take over the concession assets of OHL in Brazil and Chile, and OHL would become a reference shareholder in Abertis. In the terms of this agreement:
- Abertis receives assets spun off by OHL comprised by 60% of OHL Brasil and associated liabilities in the amount of 530 million euros.
- OHL receives a 10% stake in the capital of Abertis and the write-off of the aforementioned liabilities of 530 million euros, the payment of which will be met by Abertis.
- Abertis acquires the concession assets of OHL in Chile in exchange for a cash price of 200
million euros, approximately.
The transactions described above are pending of a number of requirements and formalities which are routine in processes of this kind.
Subsequent to this agreement, OHL has acquired an additional 5% of Abertis, whereby OHL would go on to hold a 15% stake in the company, thereby becoming a reference shareholder of Abertis. Through this operation, a transformation would take place in the OHL Group, which would:
- Become the reference industrial shareholder of Abertis, the largest concession company in the world following this transaction, with a clear determination to maintain this position.
- Crystallise the value generated in Brazil and Chile.
- Strengthen its financial position, achieving significant degearing.
- Balance its order book of concessions by incorporating clearly complementary assets, which will deliver a significant flow of dividends.
4 1H 2012
2. Highlights (Figures unaudited)
KEY CONSOLIDATED FIGURES(Euros Mn) 06/30/12 % 06/30/11 % Var. (%)
TURNOVER 2.540,6 100,0% 2.254,3 100,0% 12,7%
EBITDA 646,0 25,4% 484,2 21,5% 33,4%
EBIT 503,5 19,8% 367,0 16,3% 37,2%
ATTRIBUTABLE NET PROFIT 122,6 4,8% 78,8 3,5% 55,6%
06/30/12 12/31/11 Var. (%)
ORDER BOOK: Short-term 8.771,9 8.896,9 -1,4%
Long-term 72.655,9 72.455,2 0,3%
Total 81.427,8 81.352,1 0,1%
HUMAN RESOURCES06/30/12 06/30/11 Var. (%)
Permanent staff 18.450 16.875 9,3%
Temporary staff 7.432 6.234 19,2%
TOTAL 25.882 23.109 12,0%
RATIOS06/30/12 06/30/11
EBITDA / TURNOVER (%) 25,4 21,5
EBIT / TURNOVER (%) 19,8 16,3
BEFORE TAXES PROFIT / TURNOVER (%) 9,0 7,6
ATTRIBUTABLE NET PROFIT / TURNOVER (%) 4,8 3,5
5 1H 2012
3. Performance by Division (Figures unaudited)
TURNOVER(Euros Mn) 06/30/12 % 06/30/11 % Var. (%)
Concessions 940,3 37% 808,3 36% 16,3%
Construction 1.310,8 52% 1.270,3 56% 3,2%
Other Activities 289,5 11% 175,7 8% 64,8%
TOTAL 2.540,6 100% 2.254,3 100% 12,7%
EBITDA(Euros Mn) 06/30/12 % 06/30/11 % Var. (%)
Concessions 518,2 80% 375,5 78% 38,0%
Construction 119,9 19% 111,2 23% 7,8%
Other Activities 7,9 1% -2,5 -1% n.a.
TOTAL 646,0 100% 484,2 100% 33,4%
EBIT(Euros Mn) 06/30/12 % 06/30/11 % Var. (%)
Concessions 429,6 85% 293,4 80% 46,4%
Construction 76,5 15% 83,3 23% -8,2%
Other Activities -2,6 -1% -9,7 -3% n.s.
TOTAL 503,5 100% 367,0 100% 37,2%
6 1H 2012
• Concessions The area of Concessions has continued its positive performance, achieving significant growth with respect to the figures obtained in June 2011:
- Sales: +16.3% - EBITDA: +38.0% - EBIT: +46.4%
The principal events which have influenced the performance of sales and EBITDA are as follows:
- The positive trend in traffic flows and rates of the concessions are reflected on the following table:
(1) Average Equivalent Paying Traffic. (2) Average Daily Intensity (ADI): total km travelled by all of the road users, divided by the total km in operation of the motorway. This measurement represents the number of road users who would have travelled the total km in operation of the motorway. (3) Average daily number of passengers. (4) Accrued number of T.E.U. movements. (5) Average increase in the rates applied at each toll plaza, resulting from the rate adjustment provisions established in each
concession agreement.
From 01/01/12 to 06/30/12
From 01/01/11 to 06/30/11
Var. (%)Updating
(5)Last updating
ARGENTINA Aecsa (1) 198.937 203.522 -2,3% 26,0% April 2012
BRAZIL Autovias (1) 115.235 114.284 0,8% 4,3% July 2012
Centrovias (1) 130.456 125.205 4,2% 4,3% July 2012
Intervias (1) 157.232 154.065 2,1% 4,3% July 2012
Vianorte (1) 89.147 87.432 2,0% 4,3% July 2012
Autopista Planalto Sul (1) 74.545 76.511 -2,6% 6,5% December 2011
Autopista Fluminense (1) 131.515 123.772 6,3% 10,7% February 2012
Autopista Fernao Dias (1) 427.359 406.518 5,1% 7,7% December 2011
Autopista Regis Bittencourt (1) 392.405 387.121 1,4% 5,9% December 2011
Autopista Litoral Sul (1) 328.460 307.567 6,8% 8,3% February 2012
CHILE Autopista del Sol (1) 91.284 82.647 10,5% 1,3% July 2012
Autopista Los Libertadores (1) 45.934 43.254 6,2% 4,4% February 2012
Autopista Los Andes (1) 19.717 16.171 21,9% 7,9% January 2012
SPAIN Euroglosa M-45 (2) 77.533 79.913 -3,0% 2,0% March 2012
Autopista Eje Aeropuerto (1) 7.318 7.924 -7,6% 2,6% January 2012
Autovía de Aragón (2) 100.600 98.055 2,6% 9,7% July 2012
Metro Ligero Oeste (3) 19.593 22.080 -11,3% 2,4% January 2012
Puerto de Alicante (T.M.S.) (4) 55.901 49.692 12,5% 2,4% January 2012
MEXICO Amozoc-Perote (1) 27.904 27.791 0,4% 17,3% January 2012
Concesionaria Mexiquense (1) 255.613 193.920 31,8% 3,6% January 2012
Viaducto Bicentenario (2) 24.216 17.219 40,6% 4,4% January 2012
autopista Urbana Norte (1) 8.276 0 n.a. 4,2% April 2012
PERU Autopista del Norte (1) 25.781 22.697 13,6% 0,5% November 2011
TARIFFS UPDATINGTRAFFIC PERFORMANCE
7 1H 2012
- The impact of the performance of the Latin American currencies with respect to the euro, compared to 2011:
- The opening to traffic in April 2011 of the last road sections completing Conmex Phases II and III, formally opening the 10 kilometres of section 2 of Phase III, constituting the road axis running in an east–west direction in the northernmost part of the Metropolitan Area of Mexico City, and the 32-kilometre-long section completing Phase II.
With the opening of these sections, the Circuito Exterior Mexiquense project (Phases I, II and III) was completed, making it possible to bypass Mexican City from the northwest, at the junction with the Chamapa-Lechería motorway, down to the southeast, at the junction with the Mexico-Puebla motorway, and also connecting the Mexico-Querétaro, Mexico-Pachuca and Mexico-Texcoco motorways. Moreover, the full operation of Conmex will provide better connections between 20 towns in the State of Mexico, achieving significant reductions in travel times.
- On 11 October 2011, Controladora Vía Rápida Poetas inaugurated the road distributor, which integrates the flow of vehicle traffic between the Luis Cabrera and Mexico-Contreras avenues and the beltway around Mexico City in the southbound and northbound directions. An amendment to the concession agreement was signed in July 2012, through which the extension of the concession was agreed, with an additional elevated section approximately 2 km long, in order to connect with the so-called Autopista Urbana Sur toll expressway over the Periférico. The additional section will make it possible to integrate more effectively the road infrastructure under concession within the Integrated Roads Plan in that area.
- The opening to traffic on 3 November 2011 of Section 0 of the Autopista Urbana Norte toll expressway, which culminated the connection of the second levels of two federal entities: the Federal District and the State of Mexico, linking with the Bicentennial Viaduct. On 14 December 2011, Section 1 commenced operation, extending Section 0 up to Avda. Ejército Nacional. On 2 April 2012, an additional segment was opened to traffic within Section 1, which connects the other two opened previously, thereby enabling a continuous connection from the Bicentennial Viaduct up to Palmas and including the junction located at Avenida del Conscripto.
- The opening on 7 September 2011 of the Monasterio toll plaza on the Autopista Los Andes concession in Chile.
- The change in the accounting method applicable to the concession contract of the company Metro Ligero Oeste, S.A. from the intangible asset model to the financial asset model, in September 2011.
06/30/12 06/30/11 Variation
Peruvian New Sol 3,48 3,96 12,1%
Argentinean Peso 5,74 5,77 0,5%
Chilean Peso 652,26 670,69 2,7%
Mexican Peso 17,22 16,81 -2,4%
Brazilian Real 2,43 2,30 -5,6%
Average exchange rate for the period (€ 1)
8 1H 2012
As a consequence of these factors, the performance of Sales and EBITDA for the principal concession companies, grouped by country, is shown on the following table:
(1) Includes in EBITDA the adjustment for returns guaranteed by the concession grantor, which is classified in Other operating revenues and is not included in turnover: Conmex 124.9 million euros, Viaducto Bicentenario 44.0 million euros and Autopista Urbana Norte 23.6 million euros.
The heading “Central and Others” includes the sales and costs referring to the construction activity carried out by the concession companies themselves, exclusive of “intergroup” transactions, as a consequence of the application of IFRIC 12. In line with the principle of prudence, the OHL Group has equated the sales figure of the construction work performed by the concession companies themselves to the costs of such construction activity, therefore not affecting EBITDA for those years. At 30 June 2012 this figure totalled 199.4 million euros (174.6 million euros at 30 June 2011). Likewise, through the application of the IFRIC 12 standard, provisions were funded for the scheduled major maintenance expenses to be incurred over a number of years, in the amount of 48.1 million euros at 30 June 2012 (48.6 million euros at 30 June 2011). Prior to the application of IFRIC 12, the costs of these operations were considered additions of fixed assets at the time of their performance and were subsequently depreciated in line with their useful life.
(Euros Mn )
COUNTRYCompany 06/30/12 06/30/11 Var. (%) 06/30/12 06/30/11 Var. (%)
ARGENTINA 12,0 7,0 71,4% -1,5 -2,4 -37,5%Aecsa 12,0 7,0 71,4% -1,5 -2,4 -37,5%
BRAZIL 375,9 355,5 5,7% 209,6 184,1 13,9%Autovias 52,1 49,4 5,5% 33,3 30,3 9,9%
Centrovias 53,3 48,9 9,0% 32,6 29,8 9,4%
Intervias 58,4 55,5 5,2% 38,1 31,7 20,3%
Vianorte 47,0 44,2 6,3% 28,3 21,4 32,2%
Autopista Planalto Sul 16,9 17,1 -1,2% 5,1 6,3 -19,0%
Autopista Fluminense 27,6 24,8 11,3% 14,0 11,3 23,9%
Autopista Fernao Dias 41,0 38,2 7,3% 15,4 15,1 2,0%
Autopista Regis Bittencourt 48,4 47,4 2,1% 28,7 26,9 6,7%
Autopista Litoral Sul 31,2 30,0 4,0% 14,1 11,3 24,8%
CHILE 21,0 17,5 20,0% 15,8 13,3 18,8%Autopista del Sol 9,1 7,7 18,2% 7,1 6,2 14,5%
Autopista Los Libertadores 5,4 4,8 12,5% 4,3 3,5 22,9%
Autopista Los Andes 6,5 5,0 30,0% 4,4 3,6 22,2%
SPAIN 76,7 41,9 83,1% 54,2 18,7 189,8%Euroglosa M-45 7,1 6,9 2,9% 6,0 6,1 -1,6%
Autopista Eje Aeropuerto 2,1 2,2 -4,5% -0,1 -0,3 -66,7%
Autovía de Aragón 10,2 4,2 142,9% 8,4 3,4 147,1%
Metro Ligero Oeste 47,1 19,6 140,3% 36,7 7,1 416,9%
Puerto de Alicante (T.M.S.) 10,2 9,0 13,3% 3,2 2,4 33,3%
MEXICO 70,2 53,4 31,5% 231,5 141,4 63,7%Amozoc-Perote 11,3 9,8 15,3% 6,8 7,2 -5,6%
Concesionaria Mexiquense I (1) 51,9 38,6 34,5% 157,7 103,8 51,9%
Viaducto Bicentenario (1) 6,7 5,0 34,0% 45,8 30,4 50,7%
Autopista Urbana Norte (1) 0,3 - n.a. 21,2 - n.a.
PERU 11,5 8,9 29,2% 6,2 6,3 -1,6%Autopista del Norte 11,5 8,9 29,2% 6,2 6,3 -1,6%
TOTAL CONCESSIONS 567,3 484,2 17,2% 515,8 361,4 42,7%
Headquarters and others 373,0 324,2 15,1% 2,4 14,1 n.s.
TOTAL 940,3 808,4 16,3% 518,2 375,5 38,0%
SALES EBITDA
9 1H 2012
In February 2012, a contract was awarded for the construction and operation of the future container terminal of the East Dock at the Port of Santa Cruz de Tenerife. OHL Concesiones manages an order book of 29 major concessions, including 23 toll motorway concessions, with a total of 4,417 kilometres, one airport, three ports and two railway concessions, consolidating its position as one of the leading infrastructure operators worldwide. The concessions order book at 30 June 2012 reached the figure of 72,385.6 million euros, increasing +0.5% with respect to the figure at 12/31/11. This increase is the result of the net effect of the new awards and of the devaluation of the Brazilian real against the euro.
10 1H 2012
• Construction Construction sales grew +3.2% with respect to the first half of 2011, in line with the previous quarter. This growth stems from the increase in the business activity in the areas of Central and Eastern Europe, the U.S. and Canada, to which the commencement of a number of the major awards obtained in early 2011 has contributed, primarily those referring to projects in Canada. Operations in Spain dropped to an extent similar to previous quarters, -21.2%.
Likewise, EBITDA grew +7.8%. As noted in the presentation of results for 2011, the major international contracts obtained in 2011 will take some time in becoming fully visible on the Profit and Loss Account, as these are large-scale design and construction projects with performance schedules of between 3 and 5 years and in most cases include a design stage of between one and one and a half years.
In the context of this business activity, it is important to highlight the move to a higher scale of operations derived from the success obtained in winning awards during 2011, as reflected by the significant construction order book figure, which at 30 June 2012 totalled 8,539.4 million euros. This figure signifies +28.7% growth with respect to the figure in June 2011 and guarantees strong growth in this area in the future.
The existing order book is comprised by contracts involving a high degree of technical quality connected in most cases to niches of specialisation in which OHL is particularly strong (railways and hospitals). The geographical distribution of the order book is as follows:
Area % Order Book - Central & Eastern Europe 29.5% - Middle East & North Africa 21.8% - Spain 21.2% - U.S.A. & Canada 19.1% - Others 8.4%
A recent highlight is the award in Sochi (Russia) of the Olympic Flame, a tourist-sports complex which will be the venue for the competitions and will accommodate the participants in the 2014 Winter Olympic Games, worth 410.8 million euros.
• Other Activities Another important development was the conclusion of the agreement for the sale of OHL Medio Ambiente which was finalised on 31 May 2012. As a result, a net capital gain of 42.5 million euros has been entered in the Profit and Loss Account in this half-year period. It should be noted that since the close of accounts in December 2011, following the purchase/sale agreement reached in November 2011, this division went on to be accounted for as a discontinued operation and, consequently, its impact on Sales, EBITDA and EBIT disappeared from the Profit and Loss Account. The sales of Other Activities totalled 289.5 million euros, representing +64.8% growth with respect to the same period in the previous year, thanks to the strong performance of the Industrial Division. The combined EBITDA figures for these activities amounted to 7.9 million euros.
11 1H 2012
4. Financial Statements (Figures unaudited) A contract for the sale of the subsidiary OHL Medio Ambiente, S.A.U. was signed on 16 November 2011, the materialisation of which took place in May 2012. As a consequence of this process, the result before minority interests of the Environment Division up to its departure from the Group and the result of the sale are presented as the result for the year from discontinued operations after taxes. The Profit and Loss Account of the consolidated Group at 30 June 2011 has been restated in order to render the information comparable, whereby the figures differ from those published originally. • CONSOLIDATED PROFIT AND LOSS ACCOUNT The turnover of the OHL Group in the first half of 2012 totalled 2,540.6 million euros, +12.7% above the figure for the same period in the 2011 financial year. The turnover figure includes the construction sales made for the concession companies of the OHL Group for the work performed by companies outside of the Group, which, in the first six months of 2012 totalled 199.4 million euros, in comparison to the figure of 174.6 million euros in the first six months of 2011. The growth in the turnover of the Concessions division was +16.3%, driven primarily by the increased business activity in Brazil, Mexico and Chile, where both the toll rates as well as the traffic flows have increased. The trend in the volumes of traffic has been positive in all countries except for Spain, and toll rates were revised in the last half of 2011 and in 2012 in the majority of the concessions. The Construction Division grew +3.2% due to the good performance of its operations abroad, offsetting the decline in activity in Spain as a result of the negative trend in the sector. The business activity abroad has undergone an increase of +20.5% with respect to the first half of 2011, thanks to the increased activity in the Czech Republic, Qatar and Canada, primarily. The rest of the Divisions grouped together in Other Activities have experienced significant growth, due mainly to the thrust of the Industrial Division which is performing major projects in the Oil & Gas and Energy sectors. In the first six months of the 2012 financial year, 73.5% of the turnover was generated abroad, in comparison to 70.8% in the first half of 2011. The Division with the largest contribution to sales is Construction with 51.6% of the total, and within this Division, the international area with 36.9%, followed by Concessions, which now represents 37% of the total. In the distribution of sales by country, Spain accounts for 26.5% of the total, Brazil 23.3%, Mexico 15.7% and the United States 11%. The gross operating profit (EBITDA) for the first half of the 2012 financial year was placed at 646 million euros, representing 25.4% of turnover. This figure has increased +33.4% with respect to the same period in the 2011 financial year due, principally, to the operations of Concessions, which accounts for 80.2% of the Group’s total EBITDA and has grown +38.0% in comparison to the same period in 2011, thanks to the increased contribution by Brazil and Mexico.
12 1H 2012
The Construction Division registered an increase of +7.8%, due basically to the improved margins obtained abroad and to the maintenance, in percentage terms, of the margins in Spain. International operations generated 90.8% of the Group’s total EBITDA. Of the Group’s total EBITDA, 44.2% was generated in Mexico, 32.9% in Brazil and 9.2% in Spain. The net operating profit (EBIT) for the first six months of the 2012 financial year totalled 503.5 million euros, 19.8 % on turnover, also increasing +37.2% over the figure registered in the first half of the 2011 financial year. The +46.4% growth obtained by Concessions with respect to the first six months of 2011 stands out particularly, whereby this division now generates 85.3% of the Group’s total EBIT. The net amount of financial revenues and expenses in the first half of 2012 totalled -255.5 million euros, increasing 66.9 million euros with respect to the same period in the 2011 financial year, due to the increase in non-recourse borrowing and to the higher rates of interest existing in the first half of the 2012 financial year. The profit before taxes was placed at 229 million euros, which is 9% of turnover, with an increase of +34.4% with respect to the first six months of the 2011 financial year. The profit for the year from discontinued operations after taxes in the amount of 42.5 million euros refers to the net result of the Environment Division up to the time of its sale, as well as to the ensuing capital gain which occurred on 31 May 2012. The profit attributed to minority interests totalled 64.9 million euros, in comparison to 40.1 million euros in the first half of the 2011 financial year. This significant increase is due to the better performance of the Concessions Division in Brazil and Metro Ligero Oeste, S.A. The profit attributed to the Parent Company totalled 122.6 million euros, representing 4.8% of turnover, and increased +55.6% with respect to the figure registered in the first half of the 2011 financial year.
13 1H 2012
(Euros Mn) Amount % Amount %
Net turnover 2.540,6 100,0% 2.254,3 100,0% 12,7%
Variation in work-in-progress or finished product stocks -0,3 0,0% -2,6 -0,1% -88,5%
Work performed by the company for its assets 2,5 0,1% 2,1 0,1% 19,0%
Purchases -1.411,1 -55,5% -1.242,6 -55,1% 13,6%
Other operating revenues 243,7 9,6% 143,8 6,4% 69,5%
Employee expenses -386,7 -15,2% -348,9 -15,5% 10,8%
Other operating expenses -360,2 -14,2% -316,2 -14,0% 13,9%
Depreciation and amortisation -127,9 -5,0% -123,1 -5,5% 3,9%
Imputation of subsidies for non-financial fixed assets and others 2,8 0,1% 2,3 0,1% 21,7%
Deterioration and result from disposals of fixed assets 0,1 0,0% -2,1 -0,1% -104,8%
OPERATING PROFIT / (LOSS) 503,5 19,8% 367,0 16,3% 37,2%
Financial revenues 50,8 2,0% 60,7 2,7% -16,3%
Financial expenses -306,3 -12,1% -249,3 -11,1% 22,9%
Results from changes in value on financial instruments at fair value
(net)-12,9 -0,5% 5,4 0,2% -338,9%
Exchange differences -10,3 -0,4% -17,0 -0,8% -39,4%
Deterioration and result from disposals of financial instruments - - - - n.a.
FINANCIAL PROFIT / (LOSS) -278,7 -11,0% -200,2 -8,9% 39,2%
Equity in affiliated companies' and joint ventures' earnings for the year 4,2 0,2% 3,6 0,2% 16,7%
PROFIT / (LOSS) ON CONTINUING ACTIVITIES BEFORE TAXES 229,0 9,0% 170,4 7,6% 34,4%
Corporate tax -84,0 -3,3% -50,2 -2,2% 67,3%
PROFIT / (LOSS) ON CONTINUING ACTIVITIES IN THE YEAR 145,0 5,7% 120,2 5,3% 20,6%
Result after taxes on discontinued operations 42,5 1,7% -1,3 -0,1% n.s.
PROFIT / (LOSS) FOR THE YEAR 187,5 7,4% 118,9 5,3% 57,7%
Minority interests 64,9 2,6% 40,1 1,8% 61,8%
RESULT ATTRIBUTED TO THE PARENT COMPANY 122,6 4,8% 78,8 3,5% 55,6%
06/30/12 06/30/11Var. (%)
14 1H 2012
• CONSOLIDATED BALANCE SHEET The principal headings of the consolidated balance sheet at 30 June 2012 and the changes therein with respect to the figures at 31 December 2011 are as follows: Intangible fixed assets: totalled 7.1 billion euros, the major part of which, that is 94.1%, referred to concession companies. The increase in this heading amounted to 841.7 million euros, due primarily to the effect of the net investments made during the period in the infrastructure concession companies, particularly Concesionaria Mexiquense, S.A. de C.V., Viaducto Bicentenario, S.A. de C.V. and Autopista Urbana Norte, S.A. de C.V. Concesionaria Mexiquense, S.A. de C.V., Viaducto Bicentenario, S.A. de C.V., Autopista Urbana Norte, S.A. de C.V. and the five federal toll motorways in Brazil, which together account for 66.6% of the total intangible fixed assets, stand out for the volume of their initial investment. Non-current financial assets: presented a balance at 30 June 2012 of 864.1 million euros, of which 699 million euros refer to the concession companies, which are accounted for under this heading on meeting the requirements for consideration as financial assets. Metro Ligero Oeste, S.A. stands out among these companies with 571.6 million euros. Non-current assets held for sale: at 31 December 2011, this heading included all of the assets of the Environment Division which no longer belong to the Group, due to the sale of the Division on 31 May 2012. Trade debtors and other accounts receivable: at 30 June 2012, the balance of this heading totalled 2.3 billion euros, accounting for 16.7% of the total assets, increasing +7.1% with respect to 31 December 2011. The works certified for progress payments still outstanding and the works pending certification represent 75.8% of the total of this balance, while the ratio of the sum of both is placed at 4 months of sale, slightly below the figure at 31 December 2011. Other current financial assets and Cash and cash equivalents: the balance of these headings at 30 June 2012 totalled 1.6 billion euros, of which 787.4 million euros million euros refer to non-recourse companies and the remaining 811.9 million euros to recourse companies. This recourse liquidity position, together with the existing availability of credit, places the Group’s total recourse liquidity position at approximately 1,400 million euros. Parent Company shareholders’ equity: at 30 June 2012 totalled 1.3 billion euros, representing 9.4% of the total assets and increasing by 96.9 million euros with respect to the figure at 31 December 2011, due to the net effect of:
- The attributable profit of the first half of the 2012 financial year, totalling 122.6 million euros.
- An increase in reserves of 91 million euros, brought about by the conversion of financial
statements in foreign currency, due principally to the revaluation of exchange rates against the euro.
- A decrease in reserves of 55.8 million euros as a result of the dividend paid in June against the profit for the 2012 financial year.
- A decrease in reserves of 48.9 million euros from the impact of the valuation of financial instruments.
15 1H 2012
- A decrease of 5.9 million euros as a result of bought-back shares, which refers to 394,356
shares.
- A decrease of 6.1 million euros from other changes in reserves, principally due to changes in the scope of consolidation.
Minority Interests: were placed at 802.8 million euros at 30 June 2012, increasing by 40.8 million euros due to the net effect:
- The profit in the first half of the 2012 financial year allotted to external shareholders in the amount of 64.9 million euros.
- An increase of 13.8 million euros brought about by the conversion of financial statements in foreign currency.
- A decrease of 13.3 million euros from the impact of the valuation of financial instruments.
- A decrease of 12.1 million euros due to the exclusion from the scope of consolidation of the Environment Division.
- Other decreases totalling 12.5 million euros, owing principally to dividends paid and changes in the scope of consolidation.
Liabilities related to non-current assets held for sale: at 31 December 2011, this heading included all of the liabilities of the Environment Division which no longer belong to the Group, due to the sale of the Division on 31 May 2012. Banks and bond issues: The comparison of borrowings at 30 June 2012 with those at 31 December 2011 is shown below:
(1) The gross borrowings group together the non-current and current debt items, which include both bank debt and bonds.
(2) The net borrowings are comprised by the gross borrowings minus other current financial assets and cash and cash equivalents.
The net recourse debt was placed at 1.2 billion euros and decreased by 52.8 million euros with respect to the figure at 31 December 2011, due primarily to the net collection of the sale of the Environment Division in the amount of 192.3 million euros, offsetting the impairment brought about by the seasonality typical of the sector in the first few months of the year.
GROSS BORROWINGS (1)(Euros Mn) 06/30/12 % 12/31/11 %
Recourse debt 2.015,6 27% 1.748,8 27%
Non-recourse debt 5.343,6 73% 4.849,5 73%
TOTAL 7.359,2 100% 6.598,3 100%
NET BORROWINGS (2)(Euros Mn) 06/30/12 % 12/31/11 %
Recourse debt 1.203,7 21% 1.256,5 25%
Non-recourse debt 4.556,2 79% 3.852,7 75%
TOTAL 5.759,9 100% 5.109,2 100%
16 1H 2012
The net non-recourse debt accounted for 79.1% of the total and increased by 703.5 million euros with respect to the figure at 31 December 2011, due to the net effect of the need to finance the investments made by the concession companies and to the amortisations made in the period. It should be mentioned that:
- In March 2012, an issue of straight bonds was successfully concluded in the amount of 300 million euros maturing in 2020, issued at par value and with a coupon accruing an annual interest of 7.625% payable every six months. Of the net amount of the issue, 176.3 million were used for the repurchase of the bonds maturing in 2015.
- In relation to the 240-million-euro Syndicated Loan in effect up to January 2013, a Forward Start Facility was signed on 23 April 2012, through which the amount of the loan was increased to 300 million euros and its final maturity date was extended to January 2016.
Of the total gross borrowings, 85.7% is long-term; while the remaining 14.3% is short-term.
17 1H 2012
(Euros Mn) 06/30/12 12/31/11 Var. (%)
NON-CURRENT ASSETS 9.794,5 8.762,6 11,8%Intangible fixed assets 7.050,8 6.209,1 13,6%
Tangible fixed assets 640,2 625,2 2,4%
Real estate investments 111,0 104,8 5,9%
Equity-accounted investments 113,0 113,2 -0,2%
Non-current financial assets 864,1 903,4 -4,4%
Deferred-tax assets 1.015,4 806,9 25,8%
CURRENT ASSETS 4.109,7 4.163,5 -1,3%Non-current assets held for sale - 335,7 n.a.
Stocks 122,6 134,2 -8,6%
Trade debtors and other accounts receivable 2.319,9 2.166,6 7,1%
Other current financial assets 454,7 326,1 39,4%
Other current assets 67,9 37,9 79,2%
Cash and cash equivalents 1.144,6 1.163,0 -1,6%
TOTAL ASSETS 13.904,2 12.926,1 7,6%
(Euros Mn) 06/30/12 12/31/11 Var. (%)
NET SHAREHOLDERS' EQUITY 2.115,4 1.977,7 7,0%
SHAREHOLDERS' EQUITY 1.616,7 1.555,3 3,9%
Capital 59,9 59,9 0,0%
Issue premium 385,6 390,9 -1,4%
Reserves 1.048,6 881,2 19,0%
Result for the year attributed to the parent company 122,6 223,3 -45,1%
VALUATION ADJUSTMENTS -304,1 -339,6 -10,5%
PARENT COMPANY SHAREHOLDERS' EQUITY 1.312,6 1.215,7 8,0%MINORITY INTERESTS 802,8 762,0 5,4%
NON-CURRENT LIABILITIES 8.255,6 6.956,5 18,7%Subsidies 95,5 92,4 3,4%
Non-current provisions 178,9 115,0 55,6%
Non-current financial debt (*) 6.308,1 5.409,0 16,6%
Other non-current financial liabilities 399,7 304,6 31,2%
Deferred-tax liabilities 908,9 701,6 29,5%
Other non-current liablities 364,5 333,9 9,2%
CURRENT LIABILITIES 3.533,2 3.991,9 -11,5%Liabilities related to non-current assets held for sale - 153,0 n.a.
Current provisions 251,7 252,1 -0,2%
Current financial debt (*) 1.051,1 1.189,3 -11,6%
Other current financial liablilities 13,5 24,4 -44,7%
Trade creditors and other accounts payable 1.781,3 1.876,4 -5,1%
Other current liabilities 435,6 496,7 -12,3%
TOTAL LIABILITIES AND NET SHAREHOLDERS' EQUITY 13.904,2 12.926,1 7,6%* Includes Banking debt + Bonds
ASSETS
LIABILITIES AND SHAREHOLDERS' EQUITY
18 1H 2012
• CASH FLOW 01/01/12 TO 06/30/12 The funds originating from operations, equivalent to the Profit after Taxes (Attributable) plus amortisations, generated in the first half of 2012 totalled 250.5 million euros, showing an improvement with respect to the same period in the previous year, as well as with respect to the first quarter of 2012. The changes in non-financial current assets and liabilities were negative to the extent of 156.3 million euros, due principally to the seasonality, a normal occurrence in the first half of the year. In any case, the situation has improved with respect to June 2011 and also with respect to March 2012, as a consequence of the management of the working capital. The cash flow of the operating activities in the period was placed at 94.2 million. Net investment needs totalled -744.9 million euros and were due principally to the Concessions area, as a consequence of the investment commitments of the concession companies in the construction stage. The total financing needs in the period amounted to 650.7 million euros and were met through additional borrowing, for the most part without recourse to the Group, as the net recourse debt has decreased.
(Mn Euros) 06/30/12
646,0
Adjustments -395,5
Cash flow in operating activities 250,5Changes in current capital -156,3
Cash flow in operating activities 94,2
Cash flow in investment activities -744,9
Change in gross non-recourse debt 494,1
Change in cash & banks + non-recourse short-term investments 209,4
Change in net non-recourse debt 703,5
Change in gross recourse debt 266,8
Change in cash & banks + recourse short-term investments -319,6
Change in net recourse debt -52,8
Cash flow of financing activities 650,7
Gross operating profit (EBITDA)
19 1H 2012
5. Order Book At 06/30/12, the Group’s order book was worth 81.4 billion euros. Of the total, 10.8% refers to contracts for short-term performance, while the remaining 89.2% are long-term contracts. The short-term order book is placed at 8.8 billion euros and increased +26.3% with respect to June 2011, following the major awards obtained at the end of the 2011 financial year.
The long-term order book totalled 72.7 billion euros, showing a +0.3% increase with respect to 12/31/11, as the result of the net effect of the new awards and of the devaluation of the Brazilian real against the euro.
The most significant projects contracted between 1 January and 30 June 2012 for short-term performance are listed below: Construction: Olympic Flame tourist-sports complex in Sochi (Russia) Water Mains for Shafts (USA). Route 60 in Chile. Section 2 Sector 1 (Chile). Las Bambas mining project (Peru). Modernisation Nove Mesto - Vahom Púchov railway (Slovak Rep.). Photovoltaic power plants. Teres, Shabla, Zdravets and Solera (Bulgaria). Motorway: Pocitelj-Bijaca (Bosnia & Herzegovina) Botín Art Centre (Spain). Reconstruction and extension of the Brno sewage system (Czech Rep.). Bialystok Stadium (Poland) Guba-Gusar motorway (Azerbaijan). NTIS and CTPVV (Czech Rep.) Golden Glades Mainline Plaza (U.S.A.) Medical Centre for the Disabled in Arroyomolinos (Spain). Dock built against the Algorta seawall (Spain) Palm Bay Malabar Road - Emerson Drive (U.S.A.) Rehabilitation of the 1OL-28R runway of Palm Beach international airport (U.S.A.) Reconstruction Deinske Jazero - Zohor railway (Slovak Rep.). SR-25 (Ockeechobee Road in U.S.A.)
ORDER BOOK(Euros Mn) 06/30/12 % 12/31/11 % Var. (%)
Short term 8.771,9 11% 8.896,9 11% -1,4%
Long term 72.655,9 89% 72.455,2 89% 0,3%
TOTAL 81.427,8 100% 81.352,1 100% 0,1%
Concessions 72.385,6 89% 72.030,8 89% 0,5%
Construction 8.539,4 10% 8.740,5 11% -2,3%
Other activities 502,8 1% 580,8 1% -13,4%
20 1H 2012
6. Share Price Performance At 06/30/12, the share capital totalled 59,844,565 euros, represented by 99,740,942 ordinary shares with a face value of 0.60 euros each and listed at 16.300 euros per share and with a P/E ratio of 7.3 for 2011 earnings.
During the first half of 2012, a total of 99,223,047 shares were traded on stock exchanges (99.5% of the total tradable shares), with a daily average of 781,284 securities traded and a share price depreciation of -15.9% in the period.
STOCK PERFORMANCE
OHL share price (euros) Year to date revaluationLast High Low OHL Ibex-35 Construction Index
06/30/12 16,300 24,145 14,000 -15,9% -17,1% -23,8%
VOLUME TRADENumber of shares
tradedAverage daily volume (*) Cash daily average
06/30/2012 99.223.047 781.284 14,9(*) Euro Mn
MARKET CAPITALIZATION(Euro Mn) 06/30/12 12/31/11 Var. %
Market Capitalization 1.625,8 1.933,0 -15,9%
OHL Bonds evolution
Issue date Redemption date
Apr-10 Apr-15 7,375% 700 Mn € 524 Mn € 7,503%
Mar-11 Mar-18 8,750% 425 Mn € 425 Mn € 9,483%
Mar-12 Mar-20 7,625% 300 Mn € 300 Mn € 9,780%
DateCoupon
Initial amount
Pending amount
Yield (30/06/2012)
60%
65%
70%
75%
80%
85%
90%
95%
100%
105%
110%
115%
120%
125%
Dic 11 Ene Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dic 12
1st Semester 2012
OHL IBEX-35 Construction
21 1H 2012
Within the scope of its Concessions operations, the OHL Group has two international subsidiaries listed in their respective countries, Mexico and Brazil, whose key figures are:
OHL MÉXICO
Total number of shares 1.492.788.102
OHL's stake 73,85%
Share price as of 06/30/2012 (Mexican Peso) 16,29
Exchange rate Euro/Mexican Peso as of 06/30/2012 16,81
Total market cap (Euros) 1.446.531
Value OHL's stake 1.068.206
Share price performance since 31/12/2011 -24,65%
65%
70%
75%
80%
85%
90%
95%
100%
105%
110%
Dic 11 Ene Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dic 12
1st Semester 2012
OHL Mexico MEXBOL
OHL BRASIL
Total number of shares 344.444.000
Split April 25th 2012 1x5
OHL's stake 60,00%
Share price as of 06/30/2012 (Brazilian Real) 17,85
Exchange rate Euro/Brazilian Real as of 06/30/2012 2,53
Total market cap (Euros) 2.430.569
Value OHL's stake 1.458.341
Share price performance since 31/12/2011 49,50%
90%
95%
100%
105%
110%
115%
120%
125%
130%
135%
140%
145%
150%
Dic 11 Ene Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dic 12
1st Semester 2012
OHL Brasil BOVESPA
22 1H 2012
Any statements appearing in this document, other than those which refer to historical data, including, on a non-restrictive basis, statements with respect to operational development, business strategy and future targets, are estimates for the future and, as such, involve known and unknown risks, uncertainties and other factors which may cause the results of the OHL Group, its actions and successes, or the outcomes and conditions of its activity, to be substantially different from such information and from the Group’s estimates for the future.
This document, including the estimates for the future it contains, is provided with effects as from this day and date, and OHL expressly declines any obligation or commitment to provide any update or revision of the information contained herein, of any change in its expectations or of any modification of the facts, conditions and circumstances on which these estimates with respect to the future have been based.
Obrascón Huarte Lain, S.A.
Torre Espacio
Paseo de la Castellana, 259 D
28046 Madrid
Francisco J. Meliá
Investor Relations Manager
Tel.: 91 348 41 90
Fax: 91 348 42 07
www.ohl.es
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