SEPI Sociedad Estatal de Participaciones Industriales

The Board of Directors approves the Annual Accounts for the financial year 2009

The Board of Directors of the state-owned industrial holding company Sociedad Estatal de Participaciones Industriales (SEPI) has approved, in the meeting which took place today, the Annual Accounts of this state-owned enterprise and of its consolidated group for the financial year 2009. The consolidated result of the Group has recorded the loss of 105.96 Million Euros, against the 104.13 Million Euros profit recorded in the previous year. This difference is due to the worse results, both in the controlling companies and in some of the attached companies.

The individual result of SEPI as a holding company has been negative, which amounted to 156.18 Million Euros, 46 Million Euros more than in 2008; this was mostly the result of the negative effect of the Group's net tax quotas, and the portfolio provisions, which were offset in part by the financial income.

The aggregate result of the companies in which SEPI has a majority shareholding was positive, with a 48.59 Million Euros profit, 32.79% below to that achieved the year before. Between the companies which posted a profit mention must be made to the following groups; COFIVACASA (90.47 Million Euros), TRAGSA (59.49 Million Euros), ENUSA (13.99 Million Euros), MERCASA (8.69 Million Euros), DEFEX (6.29 Million Euros) e INFOINVEST (5.16 Million Euros), as well as the company ALYCESA (9.22 Million Euros), which compensated the losses incurred mostly by NAVANTIA (78.20 Million Euros) and IZAR Construcciones Navales en Liquidación (64.23 Million Euros).

The consolidated operating income of the SEPI Group reached a total of 4,154 Million Euros, while the net trading income amounted to 3,946 Million Euros. With regard to the previous year, the turnover increased by 1.79%, mostly as a result of the higher turnover of the NAVANTIA, TRAGSA and ENSA groups. Of this income, 39.33% came from Grupo NAVANTIA; 37.46%, from Grupo TRAGSA; 6.01%, from the Grupo ENUSA; 4.03%, from Grupo HUNOSA; 2.71%, from Grupo ENSA; 2.38%, from Grupo EFE, while the remaining 8.08% came from the other companies which make up the Group.

For their part, the operating expenses of the SEPI Group reached 4,362 Million Euros, 4.33% higher than in 2008. Of the total operating expenses, 47.35% corresponded to purchases, while 32.16% were due to the personnel costs. The negative operating results have been setoff with a positive financial results, which amounted to 100Million Euros, which, together with other transactions, means that the final result of SEPI amounted to 105.96 Million Euros.

The most important orders recorded during the financial year 2009 were those won by the TRAGSA Group, which reached 1,545 M¿, of which 68% correspond to the parent company TRAGSA, while the rest were won by its affiliates, TRAGSATEC and TRAGSEGA; by the NAVANTIA Group, with 557 Million Euros, in the ship-repair area, for the price review of on-going construction programs, and the contract for the Australian AWD; by the ENSA Group, which reached 183 Million Euros, in nuclear parts and components, such as steam generators and vessel lids; by the ENUSA Group, with 390 Million Euros in nuclear fuels and uranium supply, and by the DEFEX Group, valued in 7.3 Million Euros, which represents about 71% in the market defense. With all these new orders, the order books have reached significantly high values; special mention must be made to that of the NANVANTIA Group, which amounts to 4,012 Million Euros, 88% of which corresponds to shipbuilding projects, mostly of a military nature, as are the four S-80 submarines, the Fleet Oil Tanker, the Strategic Projection Ship, the Maritime Action Ships, and one frigate for the Spanish Navy, besides one frigate for the Norwegian Navy, seven patrol ships for Venezuela and two amphibious ships and three destroyers for Australia; as well as, in the commercial area, a roll on-roll off ship for Acciona Trasmediterránea.

Mention must be made also to TRAGSA Group's order book, which amounts to 1,396 Million Euros, for environmental activities, the Irrigation Plan and Water Technology, farming infrastructures, rural facilities, maritime issues, technical support and stockbreeding production and health. In the ENSA Group the order book reaches 322 Million Euros, which includes nuclear parts and components, such as steam generators, pressurizers, vessel caps, heat exchangers or casks; most of the contracts were won in the international market. The order book of the ENSA Group reaches 1,812 Million Euros, and includes fuel recharges and uranium supplies; 69% corresponds to the international market, while the order book for the DEFEX Group amounts to 8.9 Million Euros.

The final workforce of the SEPI Group in 2009 was 33,889 persons, which amounts to a net increase of 616 workers in comparison with the previous year, mostly due to the increase in hiring by the TRAGSA Group, as a result of the significant increase in its activity during the financial year 2009. Of the total workforce of the SEPI Group, 63.50% belongs to the TRAGSA Group, while the NAVANTIA Group has 16.7%; the HUNOSA Group, 6.9%; AGENCIA EFE, 3.7%, and the ENUSA Group, 2,8%, while the remaining 6.4% is distributed among the other companies of the Group.