At 31 December 2011, Inmobiliaria Espacio, S.A. had an ownership interest in Obrascón Huarte Lain, S.A. (OHL) of 60.03%, held via a number of subsidiaries: Grupo Villar Mir, S.L. Unipersonal, holder of 44.410% of the share capital; Espacio Activos Financieros, S.L. Unipersonal, holder of 0.030% of the share capital; Grupo Ferroatlántica, S.A. Unipersonal, holder of 1.690% of the share capital and Fertiberia Castilla y León, S.A., holder of 0.330% of the share capital of the company. The remainder is held indirectly through equity swaps.

Grupo OHL is one of the largest international groups in the world operating in the area of concessions and construction. In the year ended 31 December 2011, Obrascón Huarte Lain, S.A. (OHL) celebrated its centenary year, 15 May 2011 being the 100th anniversary since the founding of its parent company, Obrascón, the initial of whose name provides the first letter of the acronym OHL.

Operating in the areas of infrastructure concessions, residential construction, industrial construction and developments, it has a strong presence in 34 countries and in each of the world's continents. In 2011, OHL's international activity accounted for 89% of its EBITDA and 70% of its revenues, and represents 89% of its portfolio.

Furthermore, in 2011 OHL was:

• The eighth largest concessionaire in the world according to Public Works Financing (PWF).
• The 21st largest contractor in the world in terms of Construction activity, and the seventh largest in the transport segment. (Engineering News Record, ENR).
• The leading private investor in transport infrastructures in Latin America.
• Contractor of three of the largest international railway projects awarded in 2011.
• Contractor of three of the largest international railway projects awarded in 2011.
• The fifth largest Spanish construction group and leading Spanish group in terms of maritime projects.

2011 was a year of widely varying global growth rates (around 4% for the global economy as a whole, boosted by the emerging economies, but much less for developed countries and at minimum levels in Spain) in which Grupo OHL has achieved the best results of its 100-year history:

• EBITDA grew by 23.0%, a figure which matches the compound annual growth rate (CAGR) since 2002, the year in which it launched its strategy involving divestment in the residential construction sector, concession diversification, internationalisation and financial security; a strategy which, for another consecutive year, has been fully vindicated.
• Net attributable profit increased by 14.2%.
• The short-term portfolio grew by 57.8% and, since 2002, has recorded a cumulative growth rate of 28.2%.
• OHL's total turnover amounted to EUR 4,869.8 million, slightly more than that registered in 2010.

These excellent results were aided by the extraordinary performance of the Concessions division, which achieved growth in revenues and EBITDA of 9.1% and 24.2%, respectively. OHL Concesiones is the Group's main division (responsible for 81% of its total investment), represents the largest proportion of the funds generated, specifically 76.1% of the Group's EBITDA, and is already an independent line of business in its own right, both from an organisational and financial point of view.

2011 saw the integration of the two former divisions of National Construction and International Construction into a single Construction division, with the aim of promoting efficiency in its human and technical resources, by taking advantage of all the synergies existing between them and streamlining the operations of the construction business line under a common global market outlook. The new division has been extremely successful in the area of tenders and concessions, with three large-scale railway contracts being particularly worthy of note: the Mecca-Medina high-speed railway in Saudi Arabia; the Marmaray railway link between the European and Asian sides of Turkey in Istanbul; and the Ural Polar project in Russia, the largest project ever awarded to the Group, with a total budget of EUR 1,500 million. These three large-scale railway projects are in addition to a further three large contracts: the CHUM hospital in Montreal, the extension of the Toronto metro system in Canada, and an 11 km above-ground urban viaduct in Kuwait.

These contracts will add a total value of EUR 4,000 million to the division's portfolio, which has led this portfolio to achieve its all-time maximum of EUR 8,741 million, 1.6 times that of 2010, equivalent to 36 months' worth of revenues.

In this sense, we should also highlight the performance of the OHL Industrial, Division created in 2008 with a significant international scope, which closed the year with revenues 3.5 times those achieved the previous year.

These data confirm the fact that, as of 2011, OHL is now more of an international than a Spanish company, and more of a concession than a construction company, a fact backed by the important contribution of its international activities and the Concessions division to the Group's main business figures: Revenues, EBITDA, Portfolio and staff.

2011 Revenues, EBITDA and EBIT of Grupo OHL activity

 

World presence of the Grupo OHL at 31 December 2011

Within Grupo OHL, OHL Concesiones leads the development and operation of transport infrastructure concessions and was the main driver of its results in 2011, accounting for 34% of its turnover, 76% of its gross operating profit (EBITDA) and 81% of its net operating profit (EBIT).

In 2011, the total turnover of OHL Concesiones reached EUR 1,646.3 million, an increase of 9.1% with respect to the previous year; its EBITDA increased by 24.2%, reaching EUR 927.7 million, and EBIT grew by 40.8%, to reach EUR 791.1 million.

The company's excellent performance has made a decisive contribution to enabling OHL to come to be viewed as an important international player in the area of concessions and construction.

These data have served to consolidate OHL Concesiones as OHL's main business unit, in a year in which it has achieved significant increases in the main figures on its income statement and strengthened its financial independence from the parent company.

The 9.1% and 24.2% growth in revenues and EBITDA, respectively, have been caused by the increased traffic on the toll road concessions operated by the company and the revision of the applicable toll charges, as well as the opening of new sections of these toll roads during the year.

Toll roads account for 82% of OHL Concesiones' revenues, with average daily traffic during the year of 2,648,804 vehicle equivalents, 12% more than in 2010. At year-end 2011, with the opening of sections 0 and 1 of Mexico City's Autopista Urbana Norte motorway, 21 of the 23 motorway concessions were in active service.



The growth achieved over more than a decade of activity has led to OHL Concesiones occupying an international leadership position in this sector. Currently, it is among the top ten investors in and operators of transport infrastructure concessions world-wide, according to the international ranking of the prestigious Public Works Financing newsletter in its October 2011 edition.

Traffic Evolution

OHL Concesiones. Trends in value of investments, sales and EBITDA being established

(Million €)


The trend observed in the performance of its long-term portfolio is proof of the sustained growth of Grupo OHL's concessions  division.


In the company's main market, Latin America, which accounts for 92% of its revenues, OHL Concesiones occupies a leadership position in the sector due to the investments made, the number of concession assets and the range of kilometres managed.

Brazil and Mexico constitute OHL Concesiones' main markets at global level. Its subsidiaries, OHL Brasil and OHL Mexico are listed on the stock markets in their respective home countries and account for 83% of the total portfolio. The Group is the leading toll road operator in Brazil, operating 3,226 km of motorway concessions, and in the metropolitan area of Mexico City.

OHL Concesiones. Concessions in Brazil

OHL Concesiones. Concessions in Mexico

Infraestructures managed by OHL Concesiones at 31 December 2011

OHL Concesiones. Relevant activities in 2011

Throughout last year, OHL Concesiones continued to pursue its financial, sectorial and geographical strategy, obtaining funding for a number of infrastructure projects in Brazil and Mexico, and bolstering its investment, operations and analysis plan.

In addition to the construction works for the concessions currently operated, the investment plan of the five concessionaires of OHL Brasil responsible for managing and operating the federal road network, i.e. Autopista Fluminense, Fernão Dias, Régis Bittencourt, Litoral Sul and Planalto Sul, has made good progress, with more than 800 million reales having been invested at 31 December.

In Mexico, construction works for the Autopista Urbana Norte motorway enabled two sections to be opened in 2011, and the concessionaire responsible for the Poetas super highway has started to operate the motorway interchange on the southern outer ring road, which constitute complementary works in respect of this concession. Both urban roads will allow the construction process to continue in line with forecasts made in the construction plan.

In Peru, the Autopista del Norte motorway has seen the continuation of the works to double the lanes of Road Network No. 4, culminating in the construction of the Fortaleza toll gate.

In the second half of 2011, OHL Brasil began to deploy the country's largest intelligent tolling system (ITS) for the monitoring and control of motorways, throughout the federal network toll roads. The project, which involves an investment of more than 100 million reales, foresees the installation of more than 800 closed circuit video cameras, radars, data- collection stations, and 60 fixed and variable data dashboards, weather stations and vehicle height monitoring systems.

At 31 October, OHL Mexico put into service a new technology platform for remote toll management. Under the brand name Televía this new division will provide all the services relating to electronic tolling -operation, commercialisation, marketing and customer care- on OHL Mexico's toll roads, as well as on the toll roads of any third parties that choose to contract the service.

On the Autopista del Norte motorway in Peru, OHL Concesiones deployed the first of its Standard Tolling Systems (SEP). This new toll management product, developed by OHL Concesiones, incorporates solutions to all requirements detected throughout the Group's many toll systems.

In addition to consolidating its image as a developer and operator of infrastructure concessions, its strategy of developing inhouse management systems has allowed OHL Concesiones to expand its line of business to a new activity: the provision of services of integrated operation and maintenance of transport infrastructures to third parties.

This new service covers consultancy, supervision and coordination of projects, including even the wholesale management of a concession. The experience acquired by OHL Concesiones over the years guarantees that the operation and maintenance of the infrastructure shall be implemented in the best economic and technical conditions. Standard models and in-house management systems have been designed and perfected, and were developed using the latest generation technology, which is applicable to all modes of concession contract and all types of infrastructure.

The technology and systems now offered by the Concessions division make the monitoring of traffic, investments, integrated road surface management, the administration and supervision of toll charges and their collection, and the management of budgets, income, costs and profits, to name a few, possible. All these systems may be accessed from any part of the world through an Integrated Control Centre, a web-based technological platform which permits the monitoring and management of data relating to the infrastructure concession.

Lastly, we should point out that as well as in Spain, Grupo OHL is also present on the stock markets of Brazil and Mexico, key countries in the Group's activity of transport infrastructure concessions.

OHL Brasil has traded on the Novo Mercado de la Bolsa de Valores de São Paulo (Bovespa) since 2005. The share price increased from 57.83 reales in early 2011 to 61.00 reales at year-end, representing a change in market capitalisation of 5.49% over the course of the year.

In turn, OHL Mexico began to trade on the Mexican Stock Market on 11 November 2010. Its IPO was the largest transaction of this kind carried out on the Mexican stock market in the last ten years and the third largest in the transport infrastructures sector worldwide in the last five years. Since September 2011, OHL Mexico has been included on the Listed Prices Index (IPC), Mexico's main stock market index, although its share price fell 9.08% over the year, ending 2011 at 21.62 Mexican pesos.

In addition to being the 100th anniversary of Grupo OHL, 2011 was an exceptional year for OHL Construcción. The year began with the announcement that the International and National Construction divisions would be combined into a single Construction division, with the aim of streamlining the construction activity's human and technical resources within a common global market outlook.

In the twelve months since that time, OHL Construcción has achieved the Group's most remarkable milestones, being awarded flagship projects in overseas markets, both in terms of budget and because they symbolise the commencement of construction activities in markets as important as Canada, Kuwait, Saudi Arabia, Russia and Australia, and the consolidation of its presence in Turkey and Poland. Furthermore, a branch has been opened in India.

The most significant milestone was the addition of almost € 4,000 million to its portfolio thanks to the procurement of six large-scale international projects:



These and other projects have raised the value of OHL Construcción’s portfolio to an historic maximum: EUR 8,741 million, 1.6 times the figure in 2010, equivalent to 36 months' worth of revenues. It is important to draw attention to the project portfolio's high degree of specialisation in railways and hospitals, as well as its diverse but balanced geographical distribution: Central and Eastern Europe, 24.3%; Middle East and North Africa, 23.4%; Spain, 23.4%; United States and Canada, 18.8%; others, 10.1%.

This division continues to make the greatest contribution to the Group's revenues, accounting for 58.9% of the total. Nonetheless, its total turnover fell by 6.7% in 2011, following an increase of 1.6% in the international market and an 18% drop in the Spanish domestic market, where activity has been adversely affected by the measures implemented by the Government, the Autonomous Communities and City Councils to control the public deficit, as well as being affected by the elections held in the final quarter of the year.

Despite this fall in revenues, its EBITDA and EBIT recorded significant growth of 19.9% and 34.9%, respectively, due to the improvement in margins achieved in the final phases of a number of contracts.

OHL Construcción. Relevant activities in 2011

United States and Canada

2011 was a year of consolidation and strengthening of OHL's activities and presence in the United States and Canada, thanks to ever closer and stronger ties with strategic partners vis-à-vis future projects. Furthermore, the Group's US subsidiaries have developed a closer relationship with their parent company, by adopting OHL's image in their logos to be used from this year onwards.

In the North-eastern United States, the New York subsidiary Judlau Contracting concluded its first year as part of the Group with high expectations and an important project portfolio. The refurbishment of the Culver line viaduct, in Brooklyn, is worthy of note, as is the MTA's East Side Access, linking the Long Island Rail and Port Washington lines in Queens.

In turn, in the South-eastern United States, the following three large-scale projects are particularly worthy of note: the design and construction of Mainline state highway 874, by the subsidiary Community Asphalt, and the Palm Health Medical Centre and the University of Miami's Research Unit, by Arellano Construction.

As regards large-scale projects currently in the execution phase, preliminary testing has begun on the AirportLink extension of Miami's above-ground metro system in order to test the access of trains to the interior of the transport hub located within the perimeter of the airport. Meanwhile, the construction of the largest motorway in Miami, the 828/836, is progressing according to plan. These two projects have created more than 2,000 annual jobs for the local economy, contributing to kick start the economy in neighbouring counties.

In Canada, OHL began 2011 with the procurement of the contract for the Centre Hospitalier de l’Université de Montreal (CHUM), making the Group one of this country's leading companies in the area of hospital construction and consolidating its world-wide leadership position in this sector. The project will involve an investment of 2,060 million Canadian dollars and will be one of the largest hospitals in North America. This country also saw the procurement of another important project, the Toronto York Spadina Subway Extension, extending Toronto's metro system to York.

Spain

After an extended period (1995-2007) of contributions to Spanish growth, in 2011 the construction sector once again suffered a severe downturn in activity, of 7.4% in nominal terms. The measures implemented to control the public deficit have reduced the total value of public tenders to € 13,818 million, 47.3% less than in 2010. This situation, which had been foreseen, has obliged OHL to make the necessary adjustments to its costs structure in this geographical area in order to maintain profitability.

The most important projects obtained in 2011 were two contracts for the construction of railway platforms along the high-speed railway line in the Basque Country (section Antzuola-Itsaso, in Guipúzcoa) and in Extremadura (Navalmoral de la Mata-Casatejada), with a value of € 43 and 41 million, respectively, and the Collado Villalba Hospital in Madrid, with a value of € 55 million.

Central Europe and Eastern Europe

Grupo OHL carries on its activities in Central Europe through a number of subsidiaries, the main operators being the Czech companies OHL ŽS and ŽPSV.

OHL ŽS is the Group's most important subsidiary in Central and Eastern Europe and one of the Czech Republic's leading construction companies. In the last few years, it has expanded its portfolio of works and has extended its field of activity to foreign markets, such as Poland, Bulgaria, Bosnia and Herzegovina and Russia.

Through its Polish subsidiary, OHL managed to procure important contracts in this country in 2011. In terms of volume and characteristics, the most important of these is the project for section IV of the motorway connecting the airport to the port of Gdansk (Slovak route). With a budget of € 221 million, this project involves the construction of two twin tunnels, measuring 1,075 m each, under the Vistula river estuary in the Baltic sea. The City Council of Gdansk, which has promoted the development of this motorway, has also awarded the construction of section II of this road to OHL, with a budget of € 40 million.

The reconstruction of the Rondo Kaponiera tram line infrastructure, awarded by the City Council of Posnan, and with a budget of € 52.3 million, is another important contract.

Also in Poland, the subsidiary OHL ŽS carried out the modernisation works of the 18 km stretch of railway between Biadoliny and Tarmow, with a budget of € 131.1 million.

Turkey, the Middle East and North Africa

OHL continued to develop its construction activities in Algeria in 2011 with the modernisation and division works on the railway line between Annaba and Ramdane Djamel, and has finished the second Algiers ring road, the last section of which was officially opened in June at a ceremony attended by Algeria's Ministers for Public Works, Internal Affairs and Trade, as well as the governors or Algiers and Blida.

In Turkey, OHL was awarded the Marmaray CR3 project, one of the largest contracts in its history and the largest in this country that year. OHL will lead the consortium of winning bidders, with a 70% holding. It will provide a modern railway connection under the Bosphorous between Asia and Europe, for high-speed, freight and local commuter trains. The government of this country has labelled it the "project of the century".

In the context of its international expansion, OHL Construcción has taken new steps with the opening in May 2011 of its first branch in India. The branch was set up in the city of Gurgaon, a financial centre adjacent to New Delhi and the venue for the headquarters of a number of multinational companies.

OHL has been present in the countries of the Gulf Cooperation Council for many years, its commercial activities having borne their first fruit with the procurement of the construction of the Sidra Medical Research Centre (Qatar), further complemented in 2011 by the project for the Jamal Abdul Nasser Avenue viaduct in the Kuwait capital and phase II of the Mecca-Medina high-speed railway line (Haramain project) in Saudi Arabia.

This last project is the largest civil engineering contract ever obtained by a Spanish company overseas. It consists in the design, construction, operation and maintenance, over twelve years, of a 450 km high-speed rail line between Mecca and Medina, with an approximate budget of EUR 7,000 million. OHL will be responsible for 50% of the rail works and 25% of the electrification works, and will implement highly-advanced tailor-made technological solutions for extreme weather conditions.

In Qatar, the construction of the Sidra Medical Research Centre continues, a project whose execution has been led by OHL (55%) since the signing of an agreement in 2008 with the Qatar Foundation. It will be one of the most technologically advanced hospitals in the world. There are currently more than 12,000 people working on this project,  which, in late 2011, had attained a degree of completion of 60%. The building, a milestone in architectural engineering, stands out due to its large size and bold design which contrasts against the city's skyline.

Latin America

In Mexico,  OHL's construction activity  was mainly focused  on the execution of the infrastructures concessions awarded to the Group. In April, the final sections of phases II and III of the Mexico State Outer Ring Road were completed. This toll road, which circles the country’s capital from north to south on the east side, covers a total of 113 km in road concessions. Similarly, work has also continued on the Autopista Urbana Norte motorway and on the Poetas super highway.

In 2011, OHL Construcción revised its strategy in Chile and expanded its scope in this country to new areas of activity, including the first ever tender awarded by Codelco, the leading public mining company and the country's top exporter. Among the contracts procured, the Chacrillas Reservoir is particularly worthy of note, with a budget of EUR 37.5 million. In addition, section 1 of the Eastern Sector of the Autopista Los Andes motorway, measuring 19.5 km, was completed and put into service.

In Argentina, the Group is about to complete the second phase of the Quintana de Jujuy Hospital, as well as the new know-how production and management centre, which will house the offices of the Ministry of Science, Technology and Innovation and its agencies, the CONICET and the National Agency for the Promotion of Science Technology.

In Uruguay construction is on-going for all the underground infrastructures and internal circulation routes at the Montes del Plata Group's new plant for the manufacture of paper pulp. In this country, OHL has expressed interest in infrastructures investment under the modality of public-private partnerships.

In Colombia, in partnership with Italy's Impregilo, and with a 30% holding, the Group has participated in the construction of the El Quimbo hydroelectric plant, with an installed capacity of 400 MW.

Finally, in Peru, OHL has continued construction work on the second lane of Road Network No. 4 between the cities of Casma and Huarmey, a Group concession.

Asia Pacific

In early 2010, OHL took the decision to set up a presence in Australia with a view to beginning operations in the markets of Oceania and Southeast Asia, and in May of that year it opened its first operational offices in Brisbane, Queensland State, in order to coordinate the activities of this new area of business.

The most significant achievement in this sense has been the procurement, in December 2011, of its first contract in Australia, making OHL one of the few select companies that can claim to have on-going construction activities in every continent in the world.

In 2011 OHL Industrial consolidated its image as an industrial group with the capacity to execute turnkey EPC projects (Engineering, Procurement and Construction) both nationally and internationally. Its total turnover during this year amounted to EUR 295.7 million, representing an increase of 255.4% compared to 2010.



In line with recent trends, industrial markets this year continued to display much more activity outside Spain. For this reason, it has committed to expanding its sales network overseas and has opened new branches in the United States and Colombia which, together with the existing offices in Mexico, Peru, Chile and Abu Dhabi, give OHL Industrial a strong foothold in global geographic areas where the greatest business opportunities are expected to arise for its different areas of activity: Oil & Gas, energy, solids handling and fire systems.
 
The global energy market is currently enjoying a positive upward trend, in the fields of both research and project execution, which has enabled OHL Industrial to achieve one of its priority targets and firmly position itself in the international renewable energy arena. Projects such as the largest biomass plant ever planned in Spain, with an installed capacity of 50 MW, and the participation of Ecolaire in Puerto Errado 2, with the world's most pioneering solar thermal technology station employing direct steam generation technology, have led to the company being viewed as an international benchmark in this respect.

Foreseeing the possible developments in its areas of expertise, OHL Industrial is constantly striving, by paying close attention to technological advances in its different business areas and by focusing increasingly on R&D, to gain a leadership position and meet the needs of all its customers.

It has also entered into agreements and technology partnerships with world-class customers in order to develop more complex and strategic projects and penetrate more competitive markets that require these industrial services.

In order to enhance its know-how and offer increased added value to its customers, OHL Industrial has begun to provide project operation and maintenance services, such as at the biomass plant in Huelva and the solar thermal plant in Morón de la Frontera, Seville.

None of the above would have been possible without its commitment to improving its human resources, by rounding off its workforce with professionals who are highly experienced in the various industrial sectors. The workforce compared to the previous year has grown by 52.6%, with a total of 589 employees in late 2011.

Most significant contracts obtained by OHL Industrial in 2011

OHL Industrial. Relevant activities in 2011

Through Ecolaire, a leading company in the field of Oil & Gas, it has been possible to obtain a contract for the solar thermal power plant located in Morón de la Frontera (Seville), with an installed capacity of 50 MW. With a parabolic trough solar collector field with a surface area of approximately 510,020 m² and a thermal storage system employing molten salt for an additional seven hours autonomy, it was designed to provide a service life of at least 25 years.

As regards the projects currently under way, the works on the gas fractioning plant at the Pluspetrol refinery in Pisco (Peru), with 80% of the construction thereof having been completed to date, are making good progress, as are those of the hydrocarbons storage and distribution terminal, with a capacity of 403,000 m³, currently under construction for Vopak in Algeciras, of which 45% has now been built. For this work, Ecolaire has received the Safety Excellence Award, which recognises excellence in health and safety.

The turnkey project for the solar thermal plant in Calasparra (Murcia), consisting of two sub-contracts for the construction of Puerto Errado 2, has recently seen the completion of the first of these. The said contract involved designing and deploying the troughs and the additional technology needed to operate the largest ever solar field employing direct steam generation technology built to date, with an installed capacity of 30 MW. It spans an area of 650,000 m² and is split over two independent solar fields consisting of a total of 28 rows of mirrors each, with each row a kilometer long. In December it received the mechanical assembly completion certificate.

Meanwhile, the energy division has procured the largest biomass electricity generation project in Spain. This project is for a plant belonging to the company Ence in San Juan del Puerto (Huelva), with capacity to produce 50 MW of energy from biomass of forest origin. The plant will consist of two facilities, one for processing and storage of biomass and another for energy generation. This plant forms a part of Spain's Renewable Energy Plan, which follows the recommendations set out in the Kyoto Protocol concerning the emission of greenhouse gases.

The same division has also procured contracts for two photovoltaic plants. The first of these will be located in Lecce (Italy), with an installed capacity of 4 MW and a production capacity of 7,292 kWh / year, equivalent to the entire consumption of 2,430 households. The second, the Trujillo III photovoltaic plant in Cáceres (Spain), has a rated capacity of 10 MW and is able to attain a total annual production of 17,695 kWh, equivalent to the energy needed to power 5,898 homes. These two plants have been constructed according to schedule and are now fully operational.

The solids handling division, headed by Sthim, through the company Sociedad Minera El Brocal, of the Buenaventura Group, has procured a project for two overland conveyors covering a total of 5.2 km, used to transport copper ore in Colquifirna, in the Andean region of Peru at an altitude of 4,400 m. The project is valued at EUR 9.8 million. It has also procured another international project in Jordan and a further two in Spain. Furthermore, it has completed construction of the alternative fuels installation in Hidalgo (Mexico) and the clinker transport and storage project in Honduras.

In the area of fire protection systems, for the second year running, Chepro has received the safest contractor award, granted by SABIC Innovative Plastic, for the work performed at its polycarbonate production plant in Cartagena (Murcia). The maintenance work and projects undertaken at this plant amounted to a cost of EUR 800,000.

Chepro's activity at Spain's nuclear power plants has resulted in the procurement of contracts for passive, active and insulation protection at the plants in Cofrentes, Ascó, Almaraz, Trillo, Vandellós and Garoña, with a total value of EUR 13 million. Similarly, the supply of fire detection and extinguishing equipment to large overseas clients continues, such as Mesaieed Power Company Limited (Qatar General Electricity & Water Corporation), in Qatar, and Initec Energy at its West Cairo, Nubaria III plant, in Egypt.

OHL Desarrollos was incorporated in 2001 as an independent line of business within Grupo OHL, with the aim of developing the exclusive Mayakoba luxury hotel resort in Mexico.

From the outset, based on the Mayakoba project, OHL Desarrollos has acquired significant experience in the development and promotion of high quality real estate projects for mixed use, operated by world-class luxury hotel chains. As a result, its business has expanded to include a wide range of services linked to the entire life cycle of these projects.

Thus, OHL Desarrollos handles both the early stages of such projects (the search for and identification of opportunities, feasibility studies and overall project conceptualization) and the development (design and construction, fund-raising and finance structuring, identification and formation of strategic alliances), marketing, operation and final divestment thereof.

With a clear international calling, all the projects currently operated are located in Mexico, the foremost of these being the aforementioned Mayakoba resort in the Riviera Maya, where the Fairmont, Rosewood and Banyan Tree hotels and the El Camaleón golf course are already in service. Since 2007, this golf course has hosted the Mayakoba Golf Classic, the first official tournament of the PGA Tour to be held outside the U.S. and Canada. At its latest edition, the PGA TOUR and OHL announced an extension of the contract for a further six years, until the 2018 season.

The improved trend in the tourism market, coupled with the international projection of Mayakoba as a benchmark sustainable tourist destination, has had a positive effect on the operation of OHL Desarrollos' projects.

In this context, 2012 will see the construction of the fourth Mayakoba hotel, to be developed under the brand Andaz, the second most popular luxury brand of the Hyatt Group. Similarly, OHL Desarrollos has signed a letter of intent with a major hotel group on which, in collaboration with potential investment partners, significant progress has already been made in negotiating the fifth and final hotel of phase I of the Mayakoba project. Furthermore, progress has been made in the development of what will become Phase II, which is planned for late 2012. The project involves the development of 400 ha which will aim to create a social compartment aimed more at workers and a different residential component linked to a second golf course.

The stabilisation of the financial markets will undoubtedly facilitate the launch of these latest projects, which will lead to the definitive consolidation of the best and most exclusive hotel development in Central America.

OHL Desarrollos.  Relevant activities in 2011

In 2011, the Group’s currently operating projects continued to increase in prestige, as indicated by the many accolades and awards received during this time, highlighting their high quality.

The Mayakoba resort has received awards from the World Tourism Organization (UNWTO) and the Rainforest Alliance, which have conferred the highest accolades to this resort in their 2011 editions: the Ulysses prize and the Sustainable Standard- Setter prize, respectively.

As in previous years, the Fairmont hotel received the AAA Five Diamond Award from the American Automobile Association, the top rating awarded by this association, conferred to less than 0.3% of the over 50,000 hotels included in its ranking list. Similarly, it has also been included on the list of the world's 500 best hotels by Travel + Leisure, and classified among the world's best spas by Condé Nast Traveler.

For the fourth year running, the Rosewood hotel has also won the AAA Five Diamond Award conferred by the American Automobile Association. In addition it was chosen as the best luxury hotel in Mexico and Central America and one of the top 20 in the world by Travel + Leisure magazine.

For its part, in 2011 the Banyan Tree hotel was rated as the best luxury hotel in Mexico by the World Luxury Hotel Awards and, by Tripadvisor, as the ninth best luxury hotel in the world, the second best in the Spa category and the third best in the Romance category.

Finally, the El Camaleón golf course hosted the fifth edition of the Mayakoba Golf Classic, the first official tournament of the PGA Tour held outside the U.S. and Canada.

Grupo OHL closed 2011 with excellent results, which are all the more remarkable given the difficult macroeconomic environment this year. The growth recorded in the main figures of the income statement compared to 2010 were as follows:

At EUR 4,869.8 million, OHL's revenues almost reached the 5 billion mark, an increase of 2.1% compared to the preceding year, with the increases recorded in EBITDA and net attributable profit being highly significant, which at EUR 1,216.3 million and EUR 223.3 million, increased by 23.0% and 40.0%, respectively.

The main driver of this growth for the Group was its concessions activity, with increases of 9.1%, 24.2% and 40.8% in revenues, EBITDA and EBIT, respectively. Thus, this activity is now strongly regarded as the Group's main activity, accounting for 76% of its EBITDA and 81% of EBIT in 2011.

The Group's successful results have been acknowledged in the equity markets. Therefore, if we observe the evolution of OHL's share price since 2002, the year in which the current strategy was defined, at December 31, 2011, the value of OHL's shares had achieved a cumulative rate of growth of 19.1%, while the IBEX-35 itself achieved a rate of 4.1%, with the average for listed construction companies being 4.0%.



In line with the strategy currently in place, within the financial sector, internationalization efforts were undertaken according to criteria of financial prudence and caution.

Grupo OHL enjoys significant financial prestige and seamless access to all types of bank credit, and corporate and project financing, as well as to capital markets. As proof of this, particularly relevant is the success of the bond issue, for a total value of EUR 425 million, undertaken in March 2011 and maturing in March 2018; and the also successful uncovered bond issue for a total value of EUR 300 million, undertaken in March 2012 and maturing in 2020.

Grupo OHL continues to enjoy significant and stable recourse liquidity, amounting to € 1,465 million, and has undertaken significant efforts to reduce its indebtedness, which has allowed it to achieve its previously announced goal of reducing its ratio of net recourse debt to recourse EBITDA from 3.5 to 3 in 2011. This has mainly been due to:

• non-recourse leverage transactions in OHL Concesiones totalling € 350 million, backed by a part of the shares of OHL Mexico, in order to return funds to the parent company;
• divestment in non-strategic assets, such as the sale of its Environment division for an equity value of € 231 million in November 2011 and,
• the financial independence of the Concessions business unit as regards the investments it makes.

Sustainable development: Grupo OHL publishes an Annual Sustainability Report. Prepared according to the highest degree of application (level A +) of the criteria of the Global Reporting Initiative (GRI), it is also backed by the added value provided by the external verification of Deloitte.

Grupo OHL has been included in the FTSE4Good Ibex index, which distinguishes the Group as a firm with committed values, of particular interest to investors that like to combine profitability targets with concern for ethical, social, and environmental issues, as well as Good Corporate Governance in the management of the business.

In 2011, Grupo OHL has made progress in achieving the targets laid out in its 2010-2014 Corporate Social Responsibility Master Plan.

The Group's commitment to moving towards a low carbon economy has made it possible for it to achieve a "High" rating in the assessments undertaken by the 2011 Carbon Disclosure Project (CDP), and for it to be listed on the Carbon Disclosure Leadership Index.

Also in the field of sustainability, we should highlight the fact that the Mayakoba resort, OHL Desarrollos' main project, has been awarded the highest accolades by the World Tourism Organization and the Rainforest Alliance: the Ulysses prize and the Sustainable Standard-Setter prize, respectively, and has become a benchmark for sustainable and environmentally responsible world tourism destinations.

In 2011, we have continued to pursue our commitment to a more demanding procedure in the monitoring and enforcement of best practices, principles and good governance values. In this sense, after having approved Grupo OHL's Ethics Code in March 2010, the Board of Directors of the company decided in 2011 to assign the role of promoting and monitoring the Group's CSR policy to its Audit and Compliance Committee.

Significant achievements in the field of R&D have made Grupo OHL a European benchmark in the construction and concessions sector. This outstanding work has won major awards, being particularly worthy of note the gold medal with honours and the best Spanish invention award received for the CUBIPOD, a patent developed by OHL, at the 39th International Inventions Exhibition in Geneva.

The Group's commitment to its employees is reflected in an annual increase in its workforce of 11.4%, of which 71% are on permanent contract, and its commitment to training, strengthened for another consecutive year by the 574,921 hours of training provided in 2011, representing an increase of 36.3% compared to the preceding year.

This field, together with the prevention of occupational hazards, is one of Grupo OHL's top priorities, with the Group continuing to aim for a "zero accidents" policy. The Group has made great progress in this area, both in training, with an increase of 149% in the number of hours offered, and in the reduction in the rate of accidents in all of the Group's divisions.

Other significant milestones for the year are the new Responsible Procurement Policy, the adoption of the new Harassment Protocol applicable throughout the Group, the implementation of the 2011-2015 Environment and Energy Master Plan and the revision of the Group's Social Action Framework Plan.

Grupo OHL (Consolidated)

Consolidated balance sheet

 Consolidated income statement