SEPI Sociedad Estatal de Participaciones Industriales

During the hearing before the House Budget Committee

• The cash of Grupo SEPI will amount to a total of 1,327 M€
• “Grupo SEPI would record a 397 M€ positive result if the impact of the reorganizations and winding ups in shipyards and mining were eliminated”
• The cost-saving measures will amount to more than 140 M€

The Chairman of the state-owned holding company Sociedad Estatal de Participaciones Industriales (SEPI), Mr. Ramón Aguirre, reeled off during his appearance before the Budget Committee which took place today in the Lower House the main figures of SEPI’s Budget for 2013.

In his speech, Mr. Ramón Aguirre announced that the cash of Grupo SEPI would amount to 1,327 M€. “During the financial year which we are examining today, SEPI will not have to appeal to the State General Budget, but for requirements which, as of today, are neither envisaged nor foreseen”, he pointed out.

In this sense, the Chairman stated that “the budgetary balance will have a neutral impact over the objective of the public deficit”, and he reminded that “SEPI is an entrepreneurial group which is subjected to market rules and to the Government mandates, that is, in its business lines, turnover, profit and loss, and its dividends, but besides it is also a economic policy tool for providing an answer to the labor commitments, industrial reorganizations or liquidations”.

With regard to the accounts for the next financial year, Mr. Aguirre stated that the Grupo SEPI will record a 373 M€ negative result, but he highlighted that “if the impact of the reorganizations and winding ups in shipyards (Izar) and mining (Hunosa) were not included, Grupo SEPI would record a 397 M€ positive result”. “As you well know, SEPI’s mandate is twofold; to be present in those entrepreneurial activities which have the backing of the Government’s economics policy, and to take care of the labor commitments in the reorganization, liquidation and winding-up processes taking place in the different industries”, he added.

According to SEPI’s Chairman, “these positive results of almost 400 M€ would constitute the true reflection of a diverse group of companies in which live together and combine the impacts of reorganization, liquidation and winding-up processes, with their labor commitments; the effects of loss-making companies with a strategic dimension for the State; profits and losses linked to the market uncertainties; companies with a stable economic activity since the start of the financial year; and the dividends from our shareholding participations in listed companies”, he detailed.

Efficacy, austerity and transparency

On the other hand, Mr. Aguirre pointed out that during this period, SEPI has carried out all the Government’s mandates within the Group in order to promote the efficacy, austerity and transparency.

A demonstration of the efficacy are, among others, the divestment processes carried out in Olympic Moll, Cytasa, Molypharma and Desotermia; the liquidation processes in Fundación EFE and Teconma; or the mergers between Cofivacasa and Ensidesa Capital, Defex and Cirex, Navantia and Renosa, and Fundación SEPI and Fundación Laboral. “All these processes will have concluded within the framework of the financial year 2013”, he stated.

As for the austerity, the highest ranking officer of the state-owned holding entity highlighted the intense austerity process started within the Group, with a number of measures which will make possible savings amounting to 140 M€. Among other actions, Mr. Aguirre noted the reduction in remunerations, the reduction in abusive compensations, the decrease in the number of Members in the Boards of Directors and of Managers, and the reorganization carried out in the procurement system. Regarding transparency, the Chairman underscored the fulfillment of one of the commitments which he made in Parliament last April; the set up of an internal auditing department for the Group’s parent company which is directly attached to the Chairman, and which will operate in all the companies which are part of the holding.

Companies’ horizon

Finally, Mr. Ramón Aguirre talked about the companies which make up Grupo SEPI, classifying them into 4 categories; those which are in a winding-up or liquidation process (this is the case of Ente RTVE, Izar and Hunosa); those which suffer recurrent losses and which require a redefinition of their business lines (Corporación RTVE, RNE and Navantia); those companies which are subjected to the market uncertainties (Agencia EFE, Mayasa, Hipódromo, Sepides, Tragsa or Correos); and those companies which present a stable economic and financial activity (Ensa, Enusa, Enresa, Saeca, Defex, Cetarsa and Mercasa).

Grupo SEPI

Grupo SEPI is an entrepreneurial holding which has a direct and majority participation in a total of 18 state-owned companies – with a workforce of more than 80,000 professionals -, which also includes Corporación Radiotelevisión Española – over which it has powers -, and 2 state-controlled foundations. Equally, SEPI has direct minority participations in a further 7 companies, and indirect participations over more than 100 companies.