SEPI Sociedad Estatal de Participaciones Industriales

The Board of Directors approves the Annual Accounts for the financial year 2008

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 2008.

The SEPI Group recorded a positive consolidated result in 2008, which amounted to 104.13 Million Euros, basically due to the good results achieved by the controlling enterprises and by the offsetting of the associated enterprises (EADS, Red Eléctrica Española, Hispasat and ENAGAS). This profit has been 936.93 Million Euros below that recorded in 2007, due to the fact that the previous financial year included the capital gain obtained from the sale of ENDESA shareholding (1,061 Million Euros).

The aggregate results of the enterprises of the SEPI Group have also been positive, with a profit of 72.28 Million Euros. Special mention must be made to the results achieved by the groups TRAGSA (65.04 Million Euros), ENUSA (30.50 Million Euros), INFOINVEST (21.01 Million Euros), MERCASA (14.49 Million Euros), and DEFEX (6.87 Million Euros), and which have offset the losses mostly generated by the NAVANTIA Group (-51.12 Million Euros), and by IZAR en Liquidación (-49.84 Million Euros). The standalone results of SEPI as the holding company have been negative, reaching the amount of 110.50 Million Euros, due to the negative effect of the net tax quotes of the Group and the provision of funds for portfolio reserves, offset in part by the financial income.

The operating revenue of the SEPI Group during the financial year 2008 amounted to 4,080.2 Million Euros, while the net turnover reached the figure of 3,866.28 Million Euros, which represents a 13% growth on the previous year. Of this income, 37.5% have been provided by the NAVANTIA Group; the TRAGSA Group has provided another 37%; to the ENUSA Group correspond 8.7%, while the ENSA Group provided 2.6%, the EFE Group, 2.5%; 4% by the HUNOSA Group, while the remaining 7.7% was provided by the other enterprises which make up the Group.

On the other hand, the operating expenses of the SEPI Group amounted to 4,179.8 Million Euros, 14% more than in 2007, basically due to the increase in the activity recorded, especially by the NAVANTIA, TRAGSA, HUNOSA, ENUSA, EFE and ENSA Groups. Of the total operating expesenses, 49.5% corresponded to purchases, while 30.1% were due to personnel costs.

The most significant orders in 2008 were won by the TRAGSA Group, which amounted to 1,330 Million Euros, by the NAVANTIA Group, with 580 Million Euros in orders, by the ENSA Group, which recorded orders for 240 Million Euros, by the ENUSA Group (362 Million Euros), and by the DEFEX Group, which recorded orders for 90 Million Euros.

Thanks to these new orders, the order books have reached very high levels, especially that corresponding to the NAVANTIA Group, which amounts to 5,041 Million Euros; this is due to its main projects, which include 4 S-80 submarines, the Auxiliary Oil and Replenishment Ship, the Strategic Projection Ship, the Off-shore Multi Role Vessels, and one Frigate for the Spanish Navy, besides the three Frigates for Norway, the patrol boats for Venezuela and two Troop Transport and Amphibious Assault Ships and three Destroyers for Australia.

Mention must also be made to the TRAGSA Group order book, which amounts to 1,396 Million Euros; the most important orders correspond to the environmental activities, the Irrigation Plan and Water Technology, the agrarian infrastructures, rural equipment, technical aid, water management, and the diagnosis of animal illnesses.

In the ENSA Group, the order book amounts to 334 Million Euros; the above includes three reactor vessels, two PWR generators and other two steam generators for nuclear power stations in the US, as well as the lid of a vessel for the Spanish nuclear power station at Ascó. Within the ENSA Group are included the fuel recharges and uranium supply, which raises the value of the order book to 1,661 Million Euros.

The workforce of the SEPI Group at the end of 2008 reached 33,273 persons, which represents a net increase of 700 workers on the previous year; this was mostly due to the increase in hiring by the TRAGSA Group, which offsets in part the reduction in the headcount recorded by the HUNOSA Group, and in IZAR, as a result of the sale of assets and the reduction of its overheads. Of the total workforce of the SEPI Group, 62% belongs to the TRAGSA Group, 17% to the NAVANTIA Group, 8% to the HUNOSA Group, 4% to the Agencia EFE Group, and 3% to the ENUSA Group, while the remaining 6% corresponds to the other enterprises which make up the Group.