SEPI Sociedad Estatal de Participaciones Industriales

• The consolidated results of Grupo SEPI records a 84 M€ loss
• Without those negative impacts, the state-owned holding company would have recorded a 481 M€ profit

The Board of Directors of the Spanish state-owned industrial holding company Sociedad Estatal de Participaciones Industriales (SEPI) has resolved to pass the annual accounts for the financial year 2014, which record for the Group a consolidated net result attributed to SEPI, ass the parent company, of an 84 M€ loss against the 500 M€ net profit earned last year as a result of the capital gain in the sale of the 1.58% stake owned in AIRBUS GROUP.

Although the contributions made by the companies which make up the perimeter of the corporate public holding amounted to a 481 M€ result, the accounts of Grupo SEPI have been weighted down mostly for three reasons: the initial setup of a reserve for implementing HUNOSA’s Company Plan 2013-2018 in fulfillment of the mandate of the European Union; the 130 M€ contribution made by SEPI for offsetting the losses recorded by Corporación RTVE; and finally, the evolution of the INDRA asset, which last year recorded a latent capital loss of 70 M€, which made necessary to make a reserve for the risk, in keeping with the legal framework.

The activity carried out during the financial year by the companies which make up Grupo SEPI generated a consolidated turnover of 3,661 M€ which, together with other net income, gave place to a total operation income of 4,304 M€ by the corporate public holding in 2014.

Increase in the orders

Among the most significant events stands out the recovery in the order book of the Group’s production companies, which has led to a final aggregated order book of 5,063 M€, 19% more than in the previous year, which will translate into an increase in the corporate activity and, as a result, in the turnover in the financial year 2015.

The increase in the orders was especially significant in NAVANTIA with the entry into force of the Offshore Support Vessel for Pemex, two BAM ships for the Spanish Navy, the hull bottom works for the S-74 submarine, and 29 metallic structures and one substation for the offshore wind power plant WIKINGER. Equally stands out in Grupo TRAGSA, in which the increase in the value of the orders was 29% more against 2013, thus resulting in one net order book which was 19% above that recorded the year before.

Mention must be made to the effort made for achieving the signing of a new Company Plan in HUNOSA and which, on the basis of the Decision of the EC on December 10th, 2010 and the National Action Framework for Coal Mining in force for the period 2013-2018, will make possible to fulfill with the closure of the underground extracting units as the Company’s main activity and its positioning in diversification activities, capable of generating profits and jobs, thus making possible its continuity beyond 2018. The agreement was reached on May 15th, after months of negotiations.

Total expenses related to the activity of the companies of the Group reached 4,266 M€. This figure does not include the extraordinary amount for the reserve for HUNOSA’s new Plan, and represents a 7.1% reduction against the previous year.

The most important deals for consolidating the portfolio concluded during 2014 were the sale of the 51% stake which ENUSA had in the social capital of its affiliated company MOLYPHARMA to the minority shareholder; the award of the totality of the shares in REMOLCADORES DEL NOROESTE, S.A. (RENOSA), an affiliated company of NAVANTIA to REMOLCADORES RÍA DE FERROL, S.L., and the sale by HUNOSA of its 49% stake in the company Sociedad Centro de Asesoramiento y Búsqueda de Empleo de Asturias, S.L. Equally, the dissolution of DESOTERMIA, as a result of its being taken over by EMGRISA, both affiliated companies of ENUSA.

Finally, it must be highlighted that the final workforce of Grupo SEPI as of December 31st, 2014 amounted to 72,909 employees.