SEPI Sociedad Estatal de Participaciones Industriales

The operating results recorded a 76.5% improvement

The SEPI Group recorded in the financial year 2007 an interim positive result of 1,003 Million Euros, basically due to the capital gain earned through the sale of its shareholding participation in ENDESA. In 2006, the Group recorded the loss of 1,425 Million Euros, when it made a provision for 1,485 Million Euros for facing the liabilities resulting from the HUNOSA's Company Plan for the period 2006-2012. The results of SEPI as a holding company were also positive, with a profit of 957.1 Million Euros.

The Group's operating results experienced a 76.5% improvement, and the ordinary activities recorded a 1,340 Million Euros profit. This ordinary profit includes a negative extraordinary result of 298 Million Euros due to the provisions made, which improved in 1,072 Million Euros those recorded in 2006, which included the provision made for HUNOSA.

The operating income of the SEPI Group in 2007 amounted to 3,620 Million Euros, 20% over those achieved the year before. Of these operating income, 35.9% came from the Grupo NAVANTIA; 35.5%, from the Grupo TRAGSA; 8.2%, from ENUSA; 4.3%, from the Grupo HUNOSA; 3.2%, from ENSA; 2.7%, from the Agencia EFE; 1.6%, from INFOINVEST, while the remaining 8.6% come from the other companies which make up the Group.

The operating expenses of the SEPI Group amounted to 3,684 Million Euros, 12% above those recorded in 2006, of which 53.8% correspond to the value of net purchases, which experienced a 26.17% increase as a result of the increase in the activity, mostly by the Grupos TRAGSA, NAVANTIA, ENUSA, ENSA, HUNOSA and INFOINVEST. The personnel costs have amounted to 31.5% of the total operating expenses.

The most significant orders won in 2007 were those recorded by the Grupo NAVANTIA, which amounted to 1,854 Million Euros, which included a Ro-Ro ship for Trasmediterránea, the design of three destroyers based on the Spanish F-100 frigates and of two amphibious ships for Australia. Mention must also be made to the orders won by the Grupo TRAGSA, valued in 1,306 Million Euros; to those recorded by the Grupo ENUSA, amounting to 532 Million Euros; as well as to those of the Grupo ENSA, valued in 187 Million Euros.

As for the order books, stands out that of NAVANTIA, which is valued in 6,098 Million Euros, whose main projects correspond to four S-80 submarines, to the Auxiliary Oil and Replenishment Vessel, the Offshore Multirole Vessel and one frigate for the Spanish Navy, besides the three frigates for the Norwegian Navy, the patrol boats for Venezuela, the above mentioned two amphibious ships and the three destroyers for Australia and three Ro-Ro ships for Trasmediterránea.

Mention must be made also to the order book of the Grupo TRAGSA, which amounts to 1,556 Million Euros, basically for actions to be carried out within the framework of the Irrigation Plan and for protecting the environment, as well as for developing the countryside infrastructures, and for animal illnesses' diagnosis; that of the Grupo ENUSA, with 1,643 Million Euros, for fuel reloads and uranium supply for nuclear power stations; and that of the Grupo ENSA, amounting to 198 Million Euros, which includes the manufacture of one reactor vessel and of two steam generators for nuclear power stations in the US.

The average workforce of the SEPI Group at the end of 2007 was of 31,795 persons, which represents a net increase of 1,858 workers on a year earlier, mostly due to the increase in hiring at the Grupo TRAGSA, which partially compensates the reduction in the average workforce of IZAR, as a result of the sale of assets, and of the Grupo HUNOSA, due to the application of its Company Plan.

Around 60% of the total workforce of the SEPI Group belongs to the Grupo TRAGSA, 18% to the Grupo NAVANTIA, 9% to the Grupo HUNOSA, 4% to the Grupo Agencia EFE, and 3% to the Grupo ENUSA, while the remaining 6% corresponds to the other companies which make up the Group.

Other significant events in 2007

During the financial year 2007 SEPI purchased a 5% stake in the capital of ENAGAS, meeting the decision taken at the Council of Ministers on July 20th, 2007, due to the general interest of the activities which the lawmaker gives to this gas; and a 18.79% participation into the capital of Corporación RTVE, which was purchased from the Ente Público RTVE en Liquidación, in keeping with the decision taken by the Council of Ministers on March 9th, 2007, which authorized SEPI to purchase shares in that Corporación, which will be completed through a series of deals in the future.

During the financial year 2007 SEPI also sold the totality of its minority shareholding stake in ENDESA (2.95%), and privatized IONMED Esterilización; the deal was executed in November, and it was awarded to the IONISOS' French company.