Martifer presents 2011 results with significant improvements in the fourth quarter

Martifer Group's Revenues reached 550.1 M€ in 2011, a 7% drop comparing with 2010, affected by the reduction in the metallic construction area's activity. Howeverm the strong growth in Martifer Solar's revenues in 2011 almost compensated the reduction in metallic constructions area.

Consolidated EBITDA in 2011 totalled 8.9 M€, a 84.2% reduction YoY. The EBITDA Margin was 1.6 %, which compares with 9.6% YoY. This low operational performance is due to (1) negative margins in metallic constructions due to a weak activity and the restructuring plan under implementation, and (2) lower margin in the solar projects, as well as the internationalization efforts and the entrance costs associated in this business area.

From the 2011 Capex, only the metallic constructions investment results from a long-term strategic decision of entering a new geography: Brazil. The remaining investments made by Solar and RE Developer are short term investments, necessary to complete renewable energy projects under development or already under construction that the Group expects to sell by 2013, in line with its net debt reduction plan.

The investment in fixed assets (Capex) was 60.9 M€, mostly applied as follows: construction of RE Developer’s wind farms in Romania (19.2 M€), which the Group expects to dispose of in the medium term; development of solar projects in the USA and France by Martifer Solar (26.8 million euro); construction of Metallic Construction’s new facility in Brazil and varied maintenance capex (13.7 M€).

The Group’s consolidated Net Debt at the end of 2011 totalled 330.4 million euros, remaining stable when compared to 2010 year-end.

It is Martifer Group’s objective to have a debt level between 230 - 250 million euro by the end of 2013.



In 2011, Martifer Solar had an excellent performance, surpassing Martifer Metallic Constructions, which lead to a change in the weight of each of the business areas.

In metallic constructions, revenues dropped 31% in 2011 to 240.2 M€, strongly influenced by the international unfavourable environment. However, excluding extraordinary effects, the business area’s results are starting to get closer to its usual average.

EBITDA reached -20.8 M€, which corresponds to an EBITDA margin of -8.4%, a decrease justified by the unfavorable sector environment and (i) negative margins in Eastern Europe and Australia; (ii) the integration of the wind cluster into metallic constructions; and (iii) the abrupt hold ups in some of the backlog projects, which occasioned a reduction in the level of activity and productivity with the consequent inability to dilute fixed costs.

The total order backlog reached 290 M€.

In solar, Revenues grew by 32.8 % YoY, totalling 293.2 M€, as a consequence of the intense
growth strategy implemented in 2010, which produced effects throughout 2011.

EBITDA decreased only 9.4% YoY to 20.1 M€, with a 6.8% Margin, which compares to 10% in 2010, influenced by (i) internationalization effort and its associated costs of entry; (ii) increased weight of the distribution business with lower margins; and (iii) the low performance in the first half of the year in Europe.

The backlog of signed contracts is 192 M€, with Portugal, USA, France and Belgium with the most significant contribution.


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