RESULTS 3Q08 MADRID, 5 NOVEMBER 2008 - www.indra.es
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RESULTS 3Q08 MADRID, 5 NOVEMBER 2008 www.indra.es
CONTENTS
1. Introduction - 3
2. Main Figures - 5
3. Commercial Activity and Revenues by Primary Segments - 6
4. Revenues by Geographical Markets: Secondary Segments - 8
5. Commercial Activity and Revenues by Business Area -10
6. Analysis of Consolidated Financial Statements (IFRS) - 13
7. Other Events This Quarter - 15
8. Events Subsequent to the end of this Quarter - 16
ANNEX 1: Major Contracts this Quarter - 17
ANNEX 2: Consolidated Profit and Loss Account - 19
ANNEX 3: Profit and Loss Account by Segments - 20
ANNEX 4: Consolidated Balance Sheet - 21
ANNEX 5: Consolidated Cash Flow Statement - 22
2 www.indra.es1. INTRODUCTION
While overall economic and industry trends have been worse than what we expected
at the beginning of the year, Indra still ended the third quarter of 2008 with all of its
main figures in line with forecasts. Therefore, the company is on track to once again
meet its annual targets, which in addition have been raised twice during the year.
The main indicators for 9M08, compared with the same period of 2007, were as
follows:
Order intake increased by 11% to €1.92 bn (9% higher than revenues), with
healthy growth in both the Solutions (12%) and Services (9%) business lines.
Revenues rose 11% year-on-year to €1.77 bn, led by:
Growth of 18% in the services and 9% in the solutions business.
The performance in the international market, which grew by 19%. Revenues in the
Spanish market increased by 8%.
The good performance in all vertical markets, especially Telecommunications &
Media, Public Administrations & Healthcare, and Financial Services. All of these
grew by 15%, underpinned by positive trends in the Latin American and Spanish
markets and to sharp improvement in Indra's penetration of large accounts.
The order backlog rose 8% to €2.38 bn.
These orders makes us completely confident that the FY08 revenue target will be
met; revenue coverage relative to 2008 guidance has already surpassed 97%.
The total includes €941m of contracts to be executed in 2009. This is 16% above the
contracts pending execution in 2008 at 30 September 2007.
EBIT in 9M08 rose 27%.
The EBIT margin reached 11.4%, well above the level recorded in 9M07 (10%), in
part due to the integration costs incurred last year in connection with the Azertia and
Soluziona acquisitions. This level is fully in line with the FY08 target.
Net profit and EPS surged 31% and 32% respectively.
Operating cash flow increased by 27%.
As expected, net working capital at 30 September 2008 (equivalent to 87 days’
revenues) was similar to levels seen a year ago (86 days’).
Regarding the company's financial position, Indra ended the year’s third quarter with
net debt of €260.5m, having paid an ordinary dividend of €80m during the quarter.
As announced in the 1Q08 earnings report, the company expects to reduce its net
working capital to approximately 75 days' revenues by the end of 2008, which
means it expects net debt to fall by then.
3 www.indra.esMEETING 2008 GUIDANCE
Projections for the fourth quarter indicate that yet again in 2008, Indra will achieve
higher growth and offer higher returns than both the sector average and its main
peers, easily meeting all of the targets set for the year:
Revenues look set to amount to around €2.38 bn, representing growth of
9.8%, at the upper end of the target growth range of 9-10%.
Order intake growth should be between 10 and 11% to around €2.58 bn,
exceeding the target growth range of between 9 and 10%.
Operating profitability will improve further, with an EBIT margin of 11.4%
compared with 11.1% (excluding extraordinary expenses incurred in connection
with the integration of Azertia and Soluziona) in 2007. This is in line with the
target range of between 11.3% and 11.5%.
Attributable profit this year should amount to around €180m, with growth of
22%. This is fully in line with the target, which was revised upward at the end of
the first half from a range of 18% to 22%.
GENERAL MARKET TRENDS
Despite the worse than expected performance of the economy and the IT industry,
Indra has strengthened its market position in 2008. This is especially true in the
Telecommunications and Financial Services markets, where we see scope for
considerable organic growth for the next year. This, coupled with major opportunities
abroad and the company’s position in the more institutional markets, makes us
confident that in 2009 Indra will continue to outpace the sector average and sustain
the profitability of its operations, with far higher margins than the sector average, as
well as a healthy financial position and balance sheet.
As in previous occasions, Indra plans to provide its sales growth and profitability
targets early next year.
4 www.indra.es2. MAIN FIGURES
The main figures for the period are as follows:
INDRA 9M08 (€M) 9M07(€M) Variation (%)
Order Intake 1,922.9 1,731.0 11
Revenues 1,768.8 1,590.6 11
Backlog 2,379.9 2,199.2 8
Net Operating Profit (EBIT) 200.8 158.5 (*) 27
EBIT Margin 11.4% 10.0% (*) 1.4 p.p
Atributable Profit 140.7 107.0 31
Net Cash/ (debt) Position 260.5 264.4 (4.0) €M
(*) Excluding one-off expenses incurred in FY2007 regarding the integration of Azertia y Soluziona, 9M07 net operating profit
(EBIT) was €174.5 M, an 11.0% EBIT margin, which would have implied a year-on-year increase 0.4 p.p.
Earnings per Share
9M08 (€M) 9M07 (€M) Variation (%)
(according to IFRS)
Basic EPS 0.8775 0.6634 32
Diluted EPS 0.8775 0.6634 32
Basic EPS amounts are calculated by dividing net profit for the period by the total number of
outstanding shares less weighted treasury shares at the end of the period. Treasury shares
and total shares are weighted in accordance with the number of days they have been on the
company’s balance sheet during the year.
9M08 (€M) 9M07(€M)
Total number of shares 164,132,539 164,132,539
Weighted treasury stock 3,770,099 2,791,627
Total shares considered 160,362,440 161,340,912
As of the end of September 2008, the weighted number of treasury shares held amounted to
1,509,099. In addition Indra indirectly owns 2,261,000 shares hedging the 2005 Share Option
plan through an Equity-Swap signed with a financial institution.
Diluted EPS is the same as basic EPS as Indra has not issued any convertible or other
similar instruments.
5 www.indra.es3. COMMERCIAL ACTIVITY AND REVENUES
BY SEGMENT
The following is a breakdown of total 9M08 revenues
Services
27%
Solutions
73%
SOLUTIONS
Key figures for 9M08 the Solutions business and yoy comparisons are as follows:
9M08 (€M) 9M07(€M) Variation €M Variation %
Order Intake 1,424.6 1.274.8 149.8 12
Revenues 1,292.1 1.186.2 105.8 9
Backlog 2,011.9 1.839.9 172.0 9
Highlights include:
Strong performance in international air traffic management systems, where Indra
continues to expand its business. Projects in North Africa, Easter Europe and Asia
were added this quarter to the NATS contracts in the UK and the contracts in
Colombia, Ukraine and Mongolia mentioned in previous interim reports.
Ground traffic system contract wins, with good performance in Intelligent Traffic
Control systems both domestically and internationally (projects in Ireland and Israel);
and railway traffic control and ticketing systems contracts, in areas with strong
growth potential such as India, where Indra has won contracts for a number of
systems for the Mumbai metro.
Border control and surveillance systems contract wins, with projects in both the
Spanish and international markets (e.g. integrated border surveillance system for
Romania's Black Sea coastal border mentioned in the 1H report). Growth in both
contracts and revenue remain high in this business area.
The positive performance of proprietary solutions for the Financial Services market
(IT systems for the banking industry, both in Spain and Latin America; and core
systems for the insurance business, primarily in Spain) and for the international
Telecommunications market, mainly in Latin America and Eastern Europe.
Improvement in balloting projects beyond expectations, mainly in the international
market.
6 www.indra.esSERVICES
Commercial activity in the Services segment in 9M08 compared to 9M07 was as
follows:
9M08 (€M) 9M07(€M) Variation €M Variation %
Order Intake 498.2 456.2 42.0 9
Revenues 476.7 404.3 72.4 18
Backlog 368.1 359.2 8.8 2
Order intake remained positive, with an increase of 9% year-on-year, even though
2Q07 featured the renewal of several multi-year contract in the Transport and Traffic,
Telecommunications, and Defence markets.
Revenue growth at 18% is also notable. This has been driven, as in previous
quarters, by demand for application management and maintenance, mainly in the
Telecommunications, Energy and Financial Services markets, and, increasingly, in
the Public Administrations market, where demand for outsourcing and services
management is growing.
This performance was boosted by the availability of resources at the company’s
international development centres, mainly in Latin America, which have enhanced
Indra’s competitive position.
7 www.indra.es4. REVENUES BY GEOGRAPHICAL
MARKET: Secondary Segments
The breakdown of revenues by geographical market is as follows:
9M08 (€M) 9M07 (€M) Variation
Revenues
€M % €M €M %
Total revenues 1,768.8 100 1,590.6 100 178.2 11
Domestic 1,173.6 66 1,089.8 69 83.8 8
International 595.2 34 500.8 31 94.4 19
Europe 295.1 17 263.9 17 31.2 12
North America 34.1 2 38.2 2 (4.0) (11)
Latam 164.2 9 138.2 9 26.0 19
Other 101.7 6 60.5 4 41.2 68
Business in the Spanish market through September 2008 performed in line with
expectations, while growth in the international market accelerated in the third
quarter. Growth for the full year in both markets should be in line with the guidance
provided at the end of the first half: i.e. 7-8% in the domestic market and 13-15% in
the international market.
In the domestic market, the best-performing areas are Energy, Public
Administrations, and Financial Services, with all registering double-digit growth. This
growth is being driven by rising demand for services, and, in the Financial Services
business, by investment in new projects and solutions by leading financial
institutions and insurance companies.
Highlights in the international market include:
The performance in Latin America, one of the markets showing the fastest growth
in demand for IT services worldwide and where Indra continues to shore up its
position, especially in Mexico, Argentina, Colombia and Chile.
Strong growth in other countries, as mentioned in previous interim reports, thanks
to its international expansion in traffic systems (mainly Asia-Pacific, but also in other
markets in North Africa), in Defence and Security in new regions (e.g. India and
Kazakhstan) and in management systems for utilities, with landmark projects in the
Middle East and Africa.
The European market where, as forecast since the start of the year, growth rates
have been rising, driven by the air traffic management (UK market) and Defence and
Security businesses (projects in a number of Eastern European countries).
8 www.indra.esFinally, in the US and Canada market, the simulation business for the US Navy and
the Transport and Traffic business are still the main areas of activity. While
prospects for this market remain upbeat, growth is likely to come up short of
expectations for the full year due to delays in the awarding of some defence
contracts.
Europe
17%
LATAM
9%
USA Domestic
2% Mark et
66%
Other
6%
9 www.indra.es5. COMMERCIAL ACTIVITY AND REVENUES
BY BUSINESS AREA
The breakdown of 9M08 revenues is as follows:
28% 18% 16% 14% 14% 10%
Defense & Transport & Energy & Public Admin. Financial Telecom &
Security Traffic Industry & Healthcare Services Media
Order Intake
9M08 (€M) 9M07(€M) Variation €M Variation %
Order Intake 1,922.9 1,731.0 191.8 11
Order intake in 9M08 is in line with expectations, outstripping revenues by 9% and
rising 11% year-on-year. Both the domestic and international markets fared well
during the period, with the latter showing the strongest growth.
It is worth noting the performance of the following markets during the first nine
months of the year:
Transport and Traffic, especially in road traffic control (mainly in Spain) and air
traffic management (ATM) systems. In ATM, the company fared well both abroad
(contract wins in the UK, Colombia, Ukraine, Mongolia, and in 3Q08 in Morocco,
Pakistan and Lithuania) and, most notably in recent months, in the domestic market,
with the upgrade of a range of various systems for the Spanish airports authority,
AENA.
Energy and Industry, driven by the Energy business in both Spain and abroad (with
growth in order intake of over 20% in both) and by Industry abroad, mainly in Latin
America and especially Mexico.
The Telecom and Media market, with excellent performance in the Latin American
market, which represents more than 70% of order intake growth at this business.
Finally, the Public Administrations and Healthcare market, with growth primarily
coming in the domestic business thanks to major projects with the central
government to upgrade the Ministry of Justice's systems (e.g. digitalisation of civil
registries). In balloting projects, order intake amounted to €31.3m, in line with last
year’s figure of €34.6m but higher than the expected at the beginning of this year,
mainly due to order intake in the international market in 3Q08.
Appendix 1 includes a detailed list of the main contracts won by Indra in 3Q08.
10 www.indra.esRevenues
Total revenues in 9M08 increased by 11% year-on-year, in line with the pace
achieved in the previous two quarters. The breakdown by market is as follows:
REVENUES 9M08 (€M) 9M07 (€M) Variación €M Variation %
Transport and Traffic 327.0 299.6 27.4 9
Telecom and Media 187.0 162.8 24.3 15
Public admin. And Healthcare 242.0 209.9 32.1 15 (*)
Financial Services 240.4 209.0 31.4 15
Energy and Industry 284.9 259.7 25.2 10
Defence and Security 487.5 449.6 37.9 8
Total 1,768.8 1,590.6 178.2 11
(*) PA & Health, excluding balloting projects, grew by 11%
Revenues from the Defence and Security and Transport and Traffic markets
remained steady, as in the rest of the year, with growth overall close to double digits,
but over 10% from the international market, which currently represents 43% of joint
revenues. The pace of growth is expected to be maintained for the full year.
Revenues from the Telecom and Media market remained solid, but once again the
international market (Latin America and the EU) was the main growth driver in the
period.
The Financial Services market is still one of the company’s fastest-growing markets
and should be for the full year as well, with revenue growth for the full year expected
to be similar to the current one. Through September, growth was strong in the
domestic market (in both financial and insurance markets), as well as Latin America.
This is a result of the sizable investments being made by large Spanish financial
institutions, in which Indra’s penetration is high.
Growth in the Public Administrations and Healthcare market was driven by the
sound performance in Spain in the area of the central government, mainly in the
Ministry for Justice. The Healthcare business also performed well.
The Balloting business generated €31.7m of revenue, with a nearly 50/50 split
between the domestic and international markets, compared with €21.2m in the same
period last year. No major sales are anticipated in this business in the fourth quarter,
so the FY08 figure could be similar to the 9M08 one, which would mean a slight
increase from last year (€30.3m).
Finally, in the Energy and Industry market, noteworthy was the performance of the
Energy business in Spain and of the Industry business in Latin America.
11 www.indra.esOrder backlog
Order intake in 9M08 outstripped revenues by 9%, driving an 8% year-on-year
increase in the order book.
9M08 (€M) 9M07 (€M) Variación €M Variation %
BACKLOG 2,379.9 2,199.2 180.8 8
In the light of business performance in the first nine months of the year and the
volume of orders in the backlog to be executed in 4Q08, revenue coverage relative
to 2008 guidance stands at 97%. In addition, the order book at the end of
September already included contracts worth €941m that will be executed in 2009.
12 www.indra.es6. ANALYSIS OF THE CONSOLIDATED
FINANCIAL STATEMENTS (IFRS)
Attached to this report, as Appendices 2, 3, 4 and 5, respectively, are the income
statement, the income statement by segment, the balance sheet and the cash flow
statement for 9M08 with comparative figures for 9M07.
Highlights from the 9M08 income statement (appendix 2) vs. 9M07 include:
EBIT of €200.8m, an increase of 27%. The EBIT margin reached 11.4% vs. 10% in
9M07 (which would have been 11% if we exclude the €16mn of one-off expenses
incurred last year in connection with the Azertia and Soluziona acquisitions).
We expect a similar margin for the full year, which would be in line with the FY08
guidance for an EBIT margin in the range of 11.3% to 11.5%.
Attributable profit rose 31.5% to €140.7m. Highlights in relation to net profit:
net financial expenses of €12.1m, higher than last year’s figure mainly due to a
higher average net debt position in the first nine months of this year and higher
interest rates.
a 25.6% tax rate, lower than the rate for 9M07 (27.5%), due mainly to a
reduction in the prevailing Spanish statutory corporate income tax rate from in
2008 from 32.5% to 30%. Tax rate for 2008 is expected to be slightly above
26%.
Appendix 4 provides a comparison of the balance sheet at 30 September 2008 and
2007.
The most significant variations were commented on at length in the previous interim
report, and mainly include a reduction in “Other financial liabilities” due to the
transfer to “Other current liabilities” of the amount recognised in connection with
the 2005 Share Option Plan (2,281,000 options at a strike price of €16.83). This plan
has been hedged in its entirety through an equity swap arranged with a financial
institution. This transfer was required as the options granted under this plan began to
vest in April of this year, with 20,000 options being exercised in 2Q08, leaving
2,261,000 options outstanding.
Net working capital totalled €566.8m, equivalent to 87 days' revenues, similar to
the level a year ago. The company expects to end 2008 with net working capital of
around 75 days’ revenue, a similar level to that at the end of 2007.
Highlights of the cash flow statement for the nine months ended 30 September
include:
Operating cash flow of €228.8m, a 27.6% year-on-year increase.
Investment in working capital of €134m, in line with targets.
The payment of ordinary dividend for this financial year of €80m at the
beginning of the third quarter.
Investment in treasury stock of €24.6m, following the sale of around €8m in the
third quarter, ending the period with treasury stock representing 0.97% of share
capital.
13 www.indra.esNet debt at 30 September 2008 stood at €260.5m, but should decline by year’s end.
Human Resources
The total workforce in 9M08 consisted of 24,701 people. The increase with respect
to 9M07 and FY07 was as follows:
Variation in consolidation Ordinary
Employees Total Variation Variation (%)
Perimeter Variation
From 30/09/2007 159 1,557 1,716 7,5%
From 31/12/2007 15 1,204 1,219 5,2%
The average workforce was 24,292 employees, 12,5% more than a year earlier.
The breakdown is as follows:
Variation in Consolidation Ordinary
Employees Total Variation Variation (%)
Perimeter Variation
From 30/09/2007 404 2,295 2,699 12.5%
At 30 September 2008, 23% of the company’s total workforce was in the
international market, mainly Latin America (16% of the total).
14 www.indra.es7. OTHER EVENTS IN THE QUARTER
In accordance with the distribution of results corresponding to financial year 2007 as
approved at the General Shareholders’ Meeting, on 8 July (ex-dividend date)
payment was made of a gross dividend of €0.50 per share corresponding to 2007
financial year for a total of €80m. This dividend is equivalent to 55% of the 2007
earnings per share and is in line with the Company’s recurring shareholder
remuneration policy (pay-out of 50-60%).
Such dividend implies a yield of 2.7% on the closing share price at the end of 2007
(€18.58), and a 3.0% yield on the closing share price at the end of September 2008
(€16.78), and implies a 16% increase over the 2006 dividend paid last year.
15 www.indra.es8. EVENTS AFTER THE END OF THE
QUARTER
The company reports no significant events following the end of the quarter.
16 www.indra.esAPPENDIX 1: MAJOR CONTRACTS WON
THIS QUARTER
Some of the major contracts won by Indra in the third quarter of 2008, by business
area, include:
A) Transport & Traffic:
Access control security system for the Toluca International Airport, Mexico.
Traffic management systems for the A-66 and A-7 motorways for the Spanish
General Directorate of Traffic.
Rollout of the PSR/MSSR air traffic control system in the Kaunas and Palanca
airports in Lithuania.
Implementation of a complete access control system on the Mumbai
underground (India).
Development of three air traffic control simulators in Morocco.
Improvements to air traffic management systems at the Warsaw, Katowice and
Gdansk airports in Poland.
Monopulse secondary surveillance radar system for air traffic management and
radio navigation aid system for the Libyan Civil Aviation Authority.
Toll systems for the Waterford N25 - Southlink N25 and N6 Galway-East
Ballinasloe motorways (Ireland).
Toll system for Carmel motorway (Israel).
Installation of an air traffic control simulator in Bosnia – Herzegovina.
Dynamic traffic management system and signalling on the N-340 motorway.
B) Telecom & Media:
Development and maintenance of network systems applications for Telefónica
de España.
Convergence for Telefónica Perú fixed and wireless operators with the single
ERP model.
Convergence of Telefónica Empresas CTC Chile with the single Latin American
ERP model .
Rollout of latest version of SAP for Vivo.
Multi-channel strategy to optimise commercial results at Telesp
(Telecomunicações de São Paulo)
Implementation of corporate scorecard and rollout of SAP-based international
radio union management system for Radiopolis (Mexico).
Development, installation and maintenance of roaming server for Telecom
Kenya (France Telecom).
Maintenance of front office and Interactive Voice Response (IVR) platforms for
France Telecom’s customer care service.
C) Public Administration & Healthcare:
Integrated clinical management system for the E.P.H. Alto Guadalquivir Hospital
(Jaén).
Electronic prescription system for the Armed Forces Social Institute (ISFAS).
Picture Archiving and Communication System (PACS) for the La Inmaculada
Hospital (Almeria).
Medical records control system for the new Colombian Empresa Promotora de
Salud (health promoting company).
Digital signature system for the University of la Punta (Argentina).
D) Financial Services:
Implementation of new personal banking model for La Caixa.
Installation of a Project Management Office (PMO) for La Caixa to co-ordinate
the opening of bank branches and agents' offices abroad.
Document life cycle management system (DLCM) for BBVA.
Rollout for BBVA of integrated corporate electronic banking platform in a
number of countries in Latin America.
Implementation of management modules for third-party collection and billing for
medical care following traffic accidents for Zurich, Spain.
17 www.indra.es Study on the installation of an CRM system for Mutua Universal Mugenat.
Communication platform for exchanging information in Motor and General
Insurance Company of Europe (Toyota Group).
Material damage claims and image management modules for car insurance
claims made under the CIDE-ASCIDE agreement for FIATC Mutua.
New bancassurance and life insurance products for Mapfre.
E) Energy & Industry:
Installation of our Geographical Information System for Dams & Cascades
(hydraulic dam subsidiary of NEK, the Bulgarian national power company).
Maintenance of integrated plant management systems for ENEL's power
stations in Italy.
Maintenance of Electricidade de Portugal's energy management applications.
Installation of fuel supply management system for Endesa Servicios.
Installation and maintenance of the "Equivalent Premium" settlement application
and maintenance of the payment guarantee system of the Spanish National
Energy Commission (CNE).
Strategic renewable energies plan for wind energy group Gecalsa.
Installation of a risk management and energy transactions solution for
Colombian company Ecopetrol.
Installation of a package of SAP solutions in Panamanian dairy products group
Estrella Azul.
Installation of the sales management system (SMS) in Uruguayan national
water company OSE (Obras Sanitarias del Estado).
F) Defence & Security:
Dual band touch screens for satellite communications for the French armed
forces.
SATCOM maintenance for the Spanish Army.
Automatic maintenance systems for the US Navy's F/A-18 aircraft.
Maintenance service for the gunsights and optical sensors of the Coastal
Artillery Command (MACTA) for the Spanish Ministry of Defence.
Thermal visioning systems adapted for the TC3 tower on the BMR armoured
personnel carrier of the Army's Logistics Support Command (MALE).
Fully Integrated Tactical System (FITS) for the Chilean Navy's maritime patrol
aircraft.
Controlled avionics motor systems for Airbus A319, A320 and A321 aircraft.
18 www.indra.es
ANNEX 2: CONSOLIDATED INCOME
STATEMENT
9M08 9M07 Variation
€M €M €M %
Revenue 1,768.8 1,590.6 178.2 11.2
Other income 9.5 13.8 (4.3) (31.2)
Materials consumed and other operating expenses (839.4) (783.1) (56.3) 7.2
Personnel expenses (712.2) (636.8) (75.4) 11.8
Results on non-current assets 0.9 0.0 0.9 --
Gross operating profit (EBITDA) 227.6 184.5 43.1 23.3
(26.8) (26.0) (0.7) 2.9
Depreciations
Net operating profit (EBIT) 200.8 158.5 42.3 26.7
EBIT margin 11.4% 10.0% 1.4 p.p --
(12.1) (8.0) (4.1) 51.6
Net financial result
Share of profits / (losses) of associates and other investees 3.5 1.7 1.7 100.2
Profit before tax 192.1 152.2 39.9 26.2
(49.2) (41.9) (7.3) 17.5
Income tax expense
Profit for the period 142.9 110.4 32.6 29.5
(2.2) (3.3) 1.1 (33.0)
Attributable to minority interests
Profit attributable to equity holders of the parent 140.7 107.0 33.7 31.5
Figures not audited.
19 www.indra.esANNEX 3: INCOME STATEMENTS BY
SEGMENTS
1. Solutions
9M08 9M07 Variation
€M €M €M %
Revenue 1,292.1 1,186.2 105.8 8.9
Contribution margin 267.9 249.6 18.3 7.3
Contribution margin / Revenues 20.7% 21.0% -- --
Share of profits / (losses) of associates 0.3 1.2 (0.9) --
Profit for the segment 268.2 250.8 17.4 7.0
2. Services
9M08 9M07 Variation
€M €M €M %
Revenue 476.7 404.3 72.4 17.9
Contribution margin 83.8 61.7 22.1 35.9
Contribution margin / Revenues 17.6% 15.3% -- --
Share of profits / (losses) of associates 0.0 0.1 (0.1) --
Profit for the segment 83.8 61.8 22.0 35.9
3. Total consolidated
9M08 9M07 Variation
€M €M €M %
Revenue 1,768.8 1,590.6 178.2 11.2
Consolidated contribution margin 351.7 311.3 40.4 13.0
Contribution margin / Revenues 19.9% 19.6% -- --
Other non-distributable corporate expenses (150.9) (152.8) 1.9 (1.2)
Consolidated net operating profit (EBIT) 200.8 158.5 42.3 26.7
Figures not audited
20 www.indra.esANNEX 4: CONSOLIDATED BALANCE
SHEET
9M08 2007 Variation
€M €M €M
Property, plant and equipment 133.1 131.2 1.9
Intangible assets 73.3 63.1 10.2
Investment in associates and other investments 43.2 37.0 6.2
Goodwill 431.5 424.3 7.2
Deferred tax assets 31.4 34.1 (2.7)
Non-current assets 712.5 689.6 22.9
Assets held for sale 0.2 0.5 (0.3)
Operating current assets 1,579.6 1,582.4 (2.8)
Other current assets 85.6 56.1 29.5
Cash and cash equivalents 18.2 32.2 (14.0)
Current assets 1,683.6 1,671.1 12.4
TOTAL ASSETS 2,396.1 2,360.8 35.3
Share capital and reserves 806.9 739.5 67.4
Treasury shares (64.9) (42.9) (22.0)
Equity attributable to equity holders of the parent 742.0 696.6 45.4
Minority interests 41.4 42.1 (0.7)
TOTAL EQUITY 783.4 738.7 44.8
Provisions for liabilities and charges 4.6 8.9 (4.3)
Long term borrowings 50.6 46.1 4.5
Other financial liabilities 0.0 38.5 (38.5)
Deferred tax liabilities 30.9 29.9 1.0
Other non-current liabilities 24.5 20.8 3.7
Non-current liabilities 110.6 144.2 (33.6)
Current borrowings 228.1 136.4 91.6
Operating current liabilities 1,012.8 1,149.3 (136.5)
Other current liabilities 261.2 192.2 69.0
Current liabilities 1,502.1 1,477.9 24.2
TOTAL EQUITY AND LIABILITIES 2,396.1 2,360.8 35.3
Net cash /(debt) position (260.5) (150.3) (110.1)
Figures not audited
21 www.indra.esANNEX 5: CONSOLIDATED CASH FLOW
STATEMENT
9M08 9M07 Variation
€M €M €M
Profit before tax 192.1 152.2 39.9
Adjusted for:
- Depreciations 26.8 26.0 0.7
- Provisions, capital grants and others (0.2) (7.1) 6.9
- Results on non-current assets (0.9) (0.0) (0.9)
- Share of profits / (losses) of associates and other investees (3.5) (1.7) (1.7)
- Net financial result 12.1 8.0 4.1
- Share options expense 2.2 1.8 0.4
+ Dividends received 0.1 0.1 0.0
Operating cash-flow prior to changes in working capital 228.8 179.3 49.5
Receivables, net (58.1) (102.3) 44.2
Inventories, net (44.5) (13.0) (31.6)
Payables, net (31.1) (11.4) (19.6)
Change in working capital (133.7) (126.7) (7.0)
Other operating changes (32.0) (13.6) (18.4)
Income taxes paid (13.7) (29.4) 15.7
Cash-flow from operating activities 49.4 9.6 39.8
Property, plant and equipment, net (12.2) (21.2) 9.0
Intangible assets, net (20.0) (21.8) 1.7
Investments, net (16.1) (36.5) 20.3
Deposits share options plan 0.0 1.6 (1.6)
Interest received 2.0 0.7 1.3
Cash-flow provided/ (used) in investing activities (46.3) (77.1) 30.7
Changes in treasury stock (24.6) (7.1) (17.5)
Dividends of subsidiaries paid to minority interests (2.5) (2.3) (0.1)
Dividends of the parent company (79.8) (125.9) 46.1
Increase (repayment) in capital grants 6.7 6.4 0.3
Increase (decrease) in borrowings 95.9 166.7 (70.8)
Interest paid (15.2) (10.7) (4.4)
Cash-flow provided / (used) in financing activities (19.4) 27.1 (46.5)
NET CHANGE IN CASH AND CASH EQUIVALENTS (16.3) (40.4) 24.1
Cash and cash equivalents at the beginning of the period 32.2 42.3 (10.1)
Cash contributed by new companies 2.3 31.9 (29.6)
Net change in cash and cash equivalents (16.3) (40.4) 24.1
Cash and cash equivalents at the end of the period 18.2 33.7 (15.5)
Long term and current borrowings (278.7) (298.2) 19.5
NET CASH / (DEBT) POSITION (260.5) (264.4) 4.0
Figures not audited.
22 www.indra.esDISCLAIMER
The information in this report contains certain “forward-looking" statements regarding
estimates and anticipated results for the Company.
Analysts and investors should bear in mind that these statements are no guarantee
of future performance or results and that they are subject to material risks and
uncertainties, which could mean that actual results vary materially from the
expectations contained herein.
23 www.indra.esINVESTOR RELATIONS
Javier Marín, CFA
Tfno: +34.91.480.98.04
jamarin@indra.es
Alberto Valdés Pombo
Tfno: +34.91.480.98.74
avaldes@indra.es
Diana Morilla Pastor
Tfno: +34.91.480.98.00
dmorilla@indra.es
SHAREHOLDERS’ OFFICE
+34.91.480.98.00
accionistas@indra.es
INDRA
Avda. Bruselas 35
28108 Madrid
Fax: +34.91.480.98.47
www.indra.es
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