Gas Natural Fenosa - Corporate

Ladies and gentlemen,

I would like to welcome you to the website of Gas Natural Fenosa, a leading multinational group in the energy sector and a pioneer in the integration of gas and electricity, two energies that we supply to almost 20 million customers throughout 25 countries on five continents.

The good results achieved in 2012, despite the current macroeconomic and energy context, reaffirm Gas Natural Fenosa’s solidity and once again highlight the flexibility of the company's business model, the strategic value of its clear commitment to internationalisation and financial discipline.

Net profit grew by 8.8% with respect to the previous year, standing at 1.441 billion euros, despite a lower contribution of capital gains from the sale of assets. Consolidated EBITDA was 5.080 billion euros, which was 9.4% more than in 2011, sustained by international activity and a balanced business profile, between regulated and deregulated business in the gas and electricity markets.

These good figures enable the company to maintain attractive shareholder remuneration, allocating 895 million euros to dividend payments in 2012. This amount is 8.7% higher than the previous year, and represents a payout of 62.1%.

International activity grew by 22.6% and now represents 43.2% of total EBITDA, compared with 38.5% in the previous year. The company maintained sustained growth in its activity in Latin America; it consolidated its position in Europe, with satisfactory commercial expansion in countries such as France, Belgium and Holland and other new markets such as Germany; it strengthened its position as a global Liquid Natural Gas (LNG) operator in the Atlantic and Pacific markets.

Financial discipline continues to be one of the main pillars of the company's strategy. Efficient management of resources has enabled Gas Natural Fenosa to have a solid financial structure, a key factor in creating value.

The good results of the period have enabled the objectives established in the 2012 Strategic Plan to be fulfilled in terms of net profit and EBITDA, as well as net debt.

The first phase of the plan has been successfully closed and in 2013, a revision will be presented for the next three years, with the aim of adapting it to the current environment. In any case, efficiency in costs, strict financial discipline and internationalisation, with investments in profitable markets and segments and in growth, continued to be the foundation for the company’s action axes.

I would like to finish by mentioning the company's achievements on the matter of corporate responsibility and the environment. In 2012, the company was distinguished as a world leader in sustainability in gas distribution on the Dow Jones Sustainability Index (DJSI); it remained on the DJSI Europe and the FST4Good, in this last year for the 11th consecutive year; it was a leader in the utilities sector in the Carbon Disclosure Project.

All these circumstances place Gas Natural Fenosa as the first and leading integrated gas and electricity company in Spain and Latin America, and one of the foremost liquid natural gas operators in the world.

I invite you to discover the details of each of the Gas Natural Fenosa businesses and activities, through the different group portals. I hope you enjoy browsing our web site.

 

Salvador Gabarró Serra

Chairman of Gas Natural Fenosa