Revenues grow 9% in the first quarter

Indra’s results in the first quarter of 2012 have been in line with its guidance for the year.

Revenues reached €714m, growing 9% compared to the first quarter of 2011. International revenues climbed 33% (14% excluding the acquisitions of Galyleo in Italy and Politec in Brazil) and represent now half of total company revenues. Spanish revenues fell 8%, as expected by the company.

Order intake stood at €1,222m, a 21% increase on the same period in 2011. Excluding the impact of acquisitions, this increase would have been 13%. Order intake in international markets climbed 87% compared to the first quarter of 2011, accounting for 54% of Indra’s total orders and reflecting the contribution from the acquisitions made and from the project awarded in Saudi Arabia to develop specific systems for a high speed railway line. Spanish market order intake dropped 14%, in line with expectations.

The backlog was 14% higher than the year-earlier figure at €3,711m, equivalent to 1.38x revenues of the last 12 months.

Recurring EBIT margin (before extraordinary costs) stood at 8.4%, in the mid point of the full year guidance (8%-9%), having incurred in extraordinary costs for €10m in the first quarter, from an estimated €30m for the full year. Recurring net profit was €40 M, 20% down compared to the first quarter of 2011.

Verticals showing double-digit growth

International markets remain the growth drivers at Indra and now account for half of its total business, making a significant contribution to this double digit growth verticals such as Energy & Industry (24%); Public Administrations & Healthcare (18%); Financial Services (17%) and Telecom & Media (10%). Security & Defence and Transport & Traffic verticals registered a moderate negative performance in the quarter, nevertheless it is expected a substantial recovery in Transport & Traffic over the coming quarters (excluding the acquisition of Indra Navia).

2012 targets and medium-term forecasts

Given the company’s performance in the first quarter, the outlook for the rest of the year, and considering an average revenue coverage of 80%, the company confirms its 2012 guidance, including the recent acquisition of Indra Navia:

• Revenue growth of 8% - 9% with a positive performance excluding the acquisitions of Politec, Galyleo and Indra Navia
• Order intake over revenues higher than 1x
• Recurring EBIT margin (before extraordinary costs) of 8% - 9%
• Net working capital and tangible & intangible capex in the upper part of the range of 110-100 days of equivalent revenues and €65-75m respectively.

Targets for 2012 were announced before the announcement of the Spanish General Budget for 2012. After assessing the potential impact of the budget on order intake, revenues and operating profitability levels, Indra ratifies its 2012 Guidance.

As well, the company maintains unchanged its medium-term targets announced on 23rd February and confirms that it expects to return to 2011 operating profitability by 2014.

Dividend per share of €0.68

The Board of Directors has agreed to submit a proposal to the General Shareholders’ Meeting for the payment of an ordinary dividend of €0.68 per share, as announced on 27th April. This proposal implies maintaining the ordinary dividend paid in 2011 and a payout of 62%.

 

MAIN FIGURES

The following table shows the main highlights of the period including the acquisitions of Galyleo (consolidated from 1 July 2011) and Politec (consolidated from 1 October 2011):

(1) Before extraordinary costs