Sacyr Vallehermoso, S.A. (Sacyr Vallehermoso) has reported turnover of EUR5.38 billion for the year-end 2008, up 2.7%, compared with the turnover of EUR5.24 billion in previous year-end. It has also reported adjusted net attributable profit of EUR464.3 million for the year-end 2008, down 15.9%, compared with the adjusted net attributable profit in the previous year-end.

The construction business grew by 4.5%, Testa by 3.3%, the services group Valoriza by 37% and the new Sacyr Concesiones by 116.9%. The construction and services back log grew by 6.9% to EUR35,970 million.

The adjusted net attributable profit was EUR464.3 million, down 15.9% with respect to 2007 (after removing the effect of Eiffage’s sale, and other changes in accounting criteria and asset valuation that have no impact on cash flow; but only a negative impact on the statement of income). The SyV’s Group’s net attributable profit (1) was EUR300.5 million.

To make comparisons between the results of 2007 and 2008 easier, after the sale of the Eiffage stake and Itinere’s sale agreement, this result does not include the French group’s results (1) and only includes the remaining 25 concessions that will remain in Sacyr Concesiones (as in accordance with IAS the profits of Itínere’s assets whose sale has been agreed are not to be included).

Sacyr Vallehermoso’s turnover amounted to EUR5,379.5 million, up 2.7%. In this section it is worth noting the increase in activity in Sacyr Concesiones (+116.9%), Valoriza (+36.8%), construction (+4.5%) and Testa (+3.3%).

By countries, 79.6% of turnover comes from Spain and the remaining 20.4% from other international markets, such as Portugal (with a noteworthy 11.3% of the total) and the remaining 9.1% mainly corresponds to Ireland, Chile and Italy.

EBITDA (earnings before taxes, interest, depreciation and amortization) was EUR644.2 million, down 25.3% due to EBITDA’s performance in cyclical activities, especially in housing development. On the other hand, in the rest of the activities the long term recurring revenues (infrastructure concessions, property and services) with EUR348.8 million euros represents 54.1% of total EBITDA, 20.2% more than in 2007.

The total construction and services back log amounted to EUR35,970 million, up 6.9%. The latent EBITDA belonging to this income portfolio amounted to EUR10,951.6 million and will be transferred progressively to future statements of income.

The group’s balance sheet amounted to EUR28,156 million, decreasing by EUR1,620.8 million during 2008. This was mainly due to Eiffage’s exit form the consolidation perimeter. This sale for EUR1,920.2 million reduces the gross financial debt as the loans used to acquire Eiffage have been completely cancelled (EUR1,713 million as at December 31, 2007) and the rest of the amount received has been earmarked to reduce corporate debt.

On December 31, net financial debt stood at EUR14,490 million (down 5.4%), of which EUR1,866 corresponds to net corporate debt (12.9% of total debt), EUR6,204 corresponds to capital intensive activities (42.8% of total debt), EUR5,079 corresponds to the Repsol YPF investment loan. The structured debt in other businesses mostly corresponds to financing projects and Valoriza’s environmental concessions.

The takeover by Citi of Itínere will soon take place and when the process is concluded a cash flow of EUR2,000 million will be generated for the SyV Group which will be earmarked for debt repayment.

CONSTRUCTION (SACYR + SOMAGUE + SIS) .- The construction business pertaining to Sacyr in Spain and Chile, Somague in Portugal and SIS in Italy has performed well in 2008 thanks to the quality of the existing portfolio and the efficient execution of works in progress. Its income amounted to EUR3,498.2 million, up 4.5%. Sacyr improved its income by 4.5% and Somague by 4.8%.

The total construction back log stood at EUR6,424 million, up 6.7% with respect to 2007, which represents 22 months of guaranteed activity. Among the major awards of 2008 are the urbanization works in the city of El Beida (Libya) for EUR360.2 million, the construction and subsequent award of the Marâo tunnel (Portugal) for EUR163.3 million, the construction and concession of the Vallenar-Caldera motorway (Chile) for EUR156.2 million, various high-speed stretches in Barcelona, Alicante, Badajoz and Pontevedra, for a total budget of more than EUR376 million and several highway stretches in Burgos, Jaen and Pontevedra for EUR88.6 million, among others.


Sacyr Vallehermoso and Citi Infraestructures Partners reached an agreement for the sale of Itinere to Citi Infraestructures Partners. SyV retains 25 concessions distributed in five countries in the construction or ramp-up phase, which will form the SyV Group’s concessions activity under the name Sacyr Concesiones.

At year-end, Sacyr Concesiones’ turnover was EUR75.5 million, with a noteworthy growth of 116.9% due to the positive evolution of the concessions and the entry into operation of the Eresma and Turia shadow toll motorways and the Moncloa Transportation hub.

EBITDA was EUR36 million, up 224.1% with an operating margin of 47.7% against 31.9% of the previous year.

The recurring income portfolio amounted to close to EUR13,594.7 million, up 11.5% with respect to the previous year. Traffic figures and toll revenue have been very positive considering the situation in the markets, with an ADT average increase for all motorways participated by Sacyr Concesiones of 1% up to 16,606 vehicles compared with an average ADT fall of 7.7% for the sector.

In 2008, the SyV Group was awarded three new concessions which will form part of the future Sacyr Concesiones: the shadow toll motorway Marâo tunnel in Portugal a EUR517.4 million investment where SyV has a 55% participation, the Vallenar-Caldera motorway concession in Chile with a expected investment of EUR175 million euros, and a service area in the A-66 route in Calzadilla de los Barros (Badajoz), for EUR5.1 million.

HOUSING DEVELOPMENT (VALLEHERMOSO). – Vallehermoso’s turnover amounted to EUR1,087.5 billion, down 22.3% with respect to 2007. At the close of the year it delivered a total of 3,491 dwellings, down 5.3% from the previous year.

Of the total turnover amount, the sale of real estate products reached EUR952.1 million, EUR101.3 million correspond to land sales and the remainder correspond to turnover from services.

In 2008, the activity in the real estate business was influenced by the slowdown in the market, where Vallehermoso carried out sales amounting to EUR281.1 million. The pre-sale portfolio as at December 31 amounted to EUR1,551.3 million guaranteeing over 17 months of activity.