History and evolution

responsible growth
History and evolution
Ortiz Construcciones, SA, parent company of Grupo Ortiz, was
formed on January 31, 1961, more than fifty-one years ago,
focusing on the construction sector, a goal that continues to be
our main line of business.
All the new companies who
have joined the group have also
done so with the daily aim that
has always characterized Grupo
Ortiz: the effort to achieve the
highest levels of customer and
employee satisfaction as well as
proximity to them.
Like any company starting out in difficult times, its business activity
led it to centre its business on performing all types of work in the
geographical area of the Regions close to Madrid, such as Castilla
La Mancha, the area around Madrid itself, or Castilla Leon. The
first contracts focused on road surfacing, reinforcing secondary
roads, ditches and sanitation pipes, etc...
With these perspectives Ortiz Construcciones, S.A. was born
with a future that would be marked by the new beginning of our
Country, but that counted on an essential characteristic that has
marked, and continues to mark, our enterprise´s trajectory: a blind
faith in the possibilities that lie within all of those who comprise this
great family, which today is Grupo Ortiz.
In 1963, the Government of Spain approved new Development
Plans which represented a major boost to the construction and
expansion of large cities, thereby increasing the arrival of people
from rural towns to large cities.
w w w. g r u p o o r t i z . c o m
History and evolution
1961
1987
1988
The 70’s, saw very difficult times for our
company. The great economic crisis
of ‘73 together with the institutional
crisis, consequence of the great political
changes; in any case, the truly important
thing was that the company continued to
exist and comply with our commitments.
The arrival of the 80’s was to mark
a turning point in the work of Ortiz
Construcciones, S.A.: work continued
reinforcing road surfaces and surface
irrigation with fluidizised bitumens or
emulsions on second class roads for
Public Works Departments and Provincial
Delegations, mainly in Madrid, Toledo,
Ciudad Real, etc., and conservation
of schools, execution of environmental
projects in parks and gardens, all this in
the City Council of Madrid; while at the
same time participating in the preparation
and remodelling of districts for the then
Ministry of Housing Office in Madrid that
in the future was to become the Madrid
Institute of Housing, IVIMA.
This was a key, essential moment in the
life of the Company; as this is when Ortiz
starts to take root with the creation of
other small businesses such as, CONDISA
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1991
1993
(1987), to undertake rehabilitation and
restoration of monuments and INDITEC
(1988), dedicated to environmental works.
At the same time, it continued to be
consolidated in the execution of diverse
works required by the City Council of
Madrid, such as in the Replacement Action
of Buildings with building pathologies of
a diverse nature, all culminating with our
demolition company’s need to intervene in
an unfortunate fire in Almancenes Arias, on
Calle Montera in Madrid.
These were difficult yet crucial times for
Ortiz since the complications in laying the
way and looking to become consolidated
in different construction and service
sectors were united with a weakness in
capitalization, along with the assiduity
in the lack of payments for the different
works that forced continuous economic
readjustment and the need to continuously
invest possible profits when produced.
But this economic weakness, also evident
in the early years of the 90’s, would be
precisely the origin of the reasonable
position that Ortiz was to find itself in at
the end of 1995. During this year and
1994
1997
the previous one, slow payments were
to be updated and the capitalization was
reasonable due to the economic exigencies
of all the previous years. It is at the end of
1995, when the place of business moved
to Calle Santa Mª Magdalena no. 14.
In 1996, the move to the new building
built to host Grupo Ortiz took place. In the
month of April of that year, after approval
of the General Plan for Madrid, the first
major land purchases in the UZP 1.03
“Vallecas Area”, that were to continue
until approximately 940,000 m2 of rustic
land had been purchased, and in which
we intervened in the following years in its
urban development.
In 1997, the first purchases were made
in API 8.06 “Vereda de GanapanesPeñachica” which allowed us to take
part in this urban development where the
largest re-accommodation of dwellings in
a single action was to take place.
From our point of view, our company
was strongly positioned in the housing
sector, before the boom took place and
with enormous bank loan facilities for that
purpose.
1998
GRUPO ORTIZ
responsible growth
2003
2004
2005
In the 90’s, Ortiz continued setting up
small companies to carry out different
specialized activities. INDAGSA (1991),
engineering company which designs,
calculates, manufactures and lays on site,
blocks or reinforced concrete slabs for
shopping centres, offices, houses, etc ...
Iberproin (1994), gas installer and provider;
Agricasa (1997); Urbanizadora Gade
(1997); real estate companies, and Prorax
(1991); promoter and provider of homes
and shops.
It was precisely in the late 90’s when the
Ortiz Company went on to constitute the
Group and clearly position itself in the
housing sector before the widespread
expansion of bank finance, which is why
purchases of land were financed with
their own resources, deferred payment or
transferring part of the building rights.
During the first years of the 21st century,
the development and accomplishment
of urban planning in which they had
entered the preceding years was the
main focus. They did not take new
positions in future real estate activities,
but rather the capital gains realised
in the urban development, they did
2006
2007
not invest in new building land, but
reinvestment was directed to obtaining
major diversification.
In the second half of this decade, growth
and diversification within the company
were already a fact. They went on to
establish or purchase companies such
as ASTEISA (2003), for water treatment;
Real Estate firms such as Ortiz Inmobiliaria
(2003) and Inmuebles Gade (2003) joined existing ones strengthening our
position in the housing market; Proakis
(2003) and ICMA (2004) which paved
the way for us in the railway industry, so
strong at present; and later with COSFESA
(2007); ARIAN (2005) which strengthened
our presence in Andalusia in the precast
concrete market, and EMCA (2006), our
Public works firm. Also FORTEM (2005),
a company dedicated to the training
of specialists for potential emergency
actions.
By then, Grupo Ortiz was already
considered one of the companies with the
brightest future on the market. Far from
becoming complacent, it set its sights
on emerging markets such as Energy.
In 2007, it bought the electric company
2009
2010
2011
ELECOR AND ELECFIRE; in 2009, JUAN
GALINDO T & D and TRS, in construction
it created IMPULSA GRUP ORTIZ to
conduct operations in Catalonia, and
also in 2009, the foundations were laid
for our emergence in the international
market with the creation of the company
ORTIZ INTERNATIONAL INVESTMENT
and the purchase of shares in what is
now called the GRUPO EOM operating in
Peru. In 2010, the company Ortiz Energía
was constituted and the companies
which currently deal in business abroad.
Our consolidation in the international
market is evident through the
construction contracts being undertaken
in Colombia, Peru and Brazil; with
Electricity Distribution Networks in Peru;
photovoltaic power in France and Italy,
and the opening of offices in Colombia,
Peru, Brazil, Mexico, Chile, Panama,
Bulgaria and Poland. These countries are
also joined by Hungary and Romania for
contract tenders, currently completing
the diversification which Grupo Ortiz has
conducted over the past two decades.
3
Lines of business
Stretch of dual-carriageway A-43
Herrera de la Mancha-Argamasilla de Alba(Ciudad Real)
Today, Ortiz Group has five main business
lines: Construction, Energy, Real Estate,
Public Works and International which are
the framework of the daily activities of
over 2 or 100 employees, which make the
Grupo Ortiz, a group with RESPONSIBLE
GROWTH, or what can also be described
as a group with “the ability to anticipate
events and develop a business
management model that brings together
effectiveness, efficiency and growth,
the wellbeing of the community and its
surroundings as its reference“.
The effort, the technical know-how and
especially, the enthusiasm of its evergrowing workforce has made Grupo
Ortiz today one of the most established
business groups in the construction
sector. Although its role in the sector is
an ever-increasing role, there are also
significant increases in the rest of its
business lines.
Rehabilitation, Municipal
Museum of Madrid.
Construction
Energy
The construction sector continues to
be one of the main pillars underpinning
Grupo Ortiz.
As for energy, Grupo Ortiz came into the
Energy sector in an effective way in 2007
with the purchase of the companies Elecor
and Elecfire. In turn, Iberproin, which
belonged to the Group, joined these two
forming a single firm under the name of
ELECOR.
Thanks to an important safety and quality
system, we have managed to diversify
both the works produced and customer
profiles. We operate in both the public
and private sectors and we specialize in
areas such as:
Civil Engineering: Dual carriage-ways,
motorways and roads, hydraulic and
industrial engineering works, car parks,
urban rehabilitation, etc.
Railway: maintenance of infrastructures
and superstructures, stations, new
railway work.
Building: specialization in all types of
buildings: construction of Housing,
Hospitals, Theatres, Museums, etc.
Rehabilitation: Residential, Sociocultural, Educational and Sports,
facilities.
In the last months of 2009, Ortiz Group
acquired the electricity businesses Juan
Galindo and Tendidos y Redes del Sur
operating in Eastern Andalucía and which
have come to complete the offer and
services of Grupo Ortiz to the market in
terms of energy.
As a result of the growth in activity and the
extensive experience gained, the company
has made a great commitment to this
sector through the creation of the company
ORTIZ ENERGÍA, in order to bring together
all of the Group’s business services and
aid in the attainment of EPC contracts and
increase the company’s presence in these
increasingly important markets.
The main lines of activity in the Energy
Area of Grupo Ortiz are:
Environment: Environmental
Construction, Environmental
Maintenance, Hydraulics Works,
Integrated Water Management.
Services: Heritage Restoration, Building
Conservation, Replacement Projects,
Engineering, etc.
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Renewable
energy.
Energy services.
Distribution and transmission lines,
substations and line work.
Comprehensive maintenance.
Electromechanical assemblies and
installation.
GRUPO ORTIZ
responsible growth
Viaduct expanding Metro line 1
Seville to Alcala de Guadaira
Solar Plant in Cabanillas del Campo
(Guadalajara)
Real Estate
Public works
Ortiz International
We have extensive experience promoting
and carrying out residential projects,
making us true experts in creating
living spaces. Homes in the city centre
or in quiet residential areas, open or
closed residential buildings, detached
family homes or townhouses...multiple
alternatives to offer each customer the
home tailored to fit their needs.
Since Ortiz Group broke into the public
works market, its list of infrastructure in
operation has grown steadily and since
2009 has increased significantly.
The future aim of Grupo Ortiz is that
within a few years the International Area
will represent 30% of its overall Business.
Increased production, the compensation
of economic cycles between Latin America
and Europe and the great development
that will be experienced by Eastern Europe
with the arrival of European funds is the
basis on which Ortiz Group supports its
geographic expansion.
Residential buildings are always erected
following the approved execution and
delivery plans, in the area which is
the most suitable and with the best
connections. These are projects
designed to provide real quality of life
for all residents, thanks to the addition of
exclusive services, parks and sports areas.
Grupo Ortiz has been awarded Public
Works for:
Roads.
Car parks, concession and operation of
car parks for residents.
Energy Sector, installation and operation
of photovoltaic plants.
Socio-cultural institutions such as
theatres, leisure centres.
The company is already operating in
six South American countries: Peru,
Colombia, Mexico, Chile, Brazil and
Panama.
And in Europe, in countries such as: Italy,
France, Poland, Hungary, Bulgaria and
Romania.
In short, Grupo Ortiz is committed to
organic growth which causes profitable
growth to take priority over volume; that
our current business be based on a
diversified portfolio; that new investments
lack demand risk; that the acquisition of
companies provides incremental synergies
to the Group; that real estate development
revolves around social housing and, finally,
that there is a consensual divestment
plan and non-strategic asset turnover to
undertake the strategic plan outlined.
5
Economic financial report
The downturn experienced in Spain in public tenders has been the
dominant trend in 2011 in the domestic construction sector.
This effect has been offset in Grupo Ortiz by both its sectorial
and geographical diversification started years ago. Specifically, in
2011, the construction of the solar thermal plant “La Africana”,
in which Grupo Ortiz also participates in the exploitation, has
generated work for the business areas of Construction and Energy,
minimizing the effect of the falling market. Also the growth of
Services Business Area, which has had a marked increase in 2011
with the hiring of maintenance services by various District Boards
in the City of Madrid, has allowed Grupo Ortiz’s revenue not to fall.
By contrast, our international presence, particularly in the
Latin American market, has experienced a growth of activity
reflected in the last year with several tenders having been
awarded, in addition to existing ones, such as improvement of
the Bambamarca-Celedín road for the Regional Government
of Cajamarca and the Malecon Zorritos Improvement for the
Government of Tumbes, all in Peru; as well as the award in 2010
in Bogotá (Colombia) for the design and construction of roads
in the districts of Ciudad Bolivar, Tunjuelito and Usme promoted
by the Urban Development Institute of the City Hall of Bogota,
amounting to around €40 million and which will run throughout
2012. In Colombia, a tender was also awarded for two projects
for the public water control company Acueducto y Alcantarillado
de Bogotá involving the construction of its headquarters, and
another contract to build sewage lines.
The activity in terms of tenders and the opening of new markets in
2011 has been very intense and has led to the creation of several
subsidiaries and branches abroad with clear expectations of
contracting works in 2012.
Revenue
(In millions of Euros)
600
578
500
603
568
568
2009
2010*
550
489
400
405
300
200
100
0
2005
* Figures added
** Provisionally
6
www.grupoortiz.com
2006
2007
2008
2011**
GRUPO ORTIZ
responsible growth
Branches or subsidiaries were set up in countries like Mexico,
where in 2012, construction of shopping centres was started,
in addition to having a very advantageous position in residential
construction; in Panama, with major public works tenders; in
Brazil, where a tender has been awarded to drain a river and
possible residential construction.
The construction and operation in 2012 of the solar power plant
“La Africana” in the province of Córdoba, or the construction of
the wind farms “Santa María de Nieva” in the province of Almeria,
together with the PV plants already being exploited by our
group and the works developed in Italy and France, complete a
considerable Renewable Energy portfolio.
Finally, foreign presence continues with operations and tenders
in Eastern European countries; Romania, Hungary, Bulgaria and
Poland, where the tender is concentrated in two strategic areas
within the construction group; water and rail.
By 2012, the portfolio of works in the Energy Area will continue
to grow in this strategic sector, having completed a portfolio of
experiences as energy specialists in photovoltaics, solar thermal
and wind energies; thus making Grupo Ortiz one of the most
diversified and experienced groups in the construction of different
types of renewables in our country.
The strong commitment to diversification of the business that
Grupo Ortiz has operated over the year, led us to continue to
be heavily committed to Energy, thus providing the new up
line business figures experienced in the past two years in this
sector.
In addition, the electrical installation company of the Group, Juan
Galindo, is already working in Peru with two contracts: one with
the Peruvian company Endesa Perú, Edelnor, and the other with
Breakdown of Revenue by Area
(In millions of Euros)
2010
2011
37
22
18
By Geographical area
35
(In millions of Euros)
53
2011
104
59
460
389
491
TOTAL: €568 million
2010
• Construction
• Energy
• Real Estate
• Public Works
TOTAL: €550 million
2011
• Construction
• Energy
• Real Estate
• Public Works
€550 million
• Domestic
• International
7
Economic financial report
Breakdown of Orders on Books*
(In millions of Euros)
Total
2.337
2.250
Total
1.836
2.000
1.750
1.500
1.492
1.250
1.468
1.000
750
175
20
Total
491
500
107
45
24
16
15
95
26
250
158
498
5
19
13
325
0
173
In
2012
From 2013
onwards
• Public works
• Real Estate
• International Energy
• Domestic Energy
• International Construction
• Domestic Construction
Entire
portfolio
* provisional
Red Eléctrica Española who commissioned it to install 200 km of
HV line in Chile, besides having increased its business portfolio
in the year 2011, it obtained maintenance contracts for Union
Fenosa and Iberdrola of Castilla La Mancha.
In the Real Estate Area, various locations in Madrid have seen
completed their social housing developments for rental with an
option to own (VPPAOC) in Alcala de Henares (Espartales) and
Calle Huertas and La Chopera, both in Collado Villalba; and
the social housing developement (VPP) “Manuela Malasaña” in
Móstoles. VPPAOC developments have also been initiated in
Fuenlabrada and Móstoles in Madrid.
8
www.grupoortiz.com
Grupo Ortiz continues the policy it began at the end of the 2000
decade, maintaining a presence in real estate, but with a focus on
social housing, where there is no developer risk.
With respect to the Public Works Area, the past year has been
a definite boost to the importance that this business will have
on the Group’s income statement in the coming years. Among
the major projects in this Division are the signing in 2011, of
the setting up of the operating concession for the solar power
plant “La Africana” in Cordoba and the new wind farms “Santa
María de Nieva” in Almeria; projects that will become operational
during 2012.
GRUPO ORTIZ
responsible growth
Net worth*
(In millions of Euros)
300
300
250
252
200
204
150
100
162
120
177
135
50
0
2005
2006
2007
2008
2009
2010*
2011**
* Consolidated figures
** Provisional
Noteworthy in 2011: the work was completed and the public
works for the dual-carriageway A 31 between Alicante and Bonnet
came into operation; the PV system on the roof of the University of
Malaga; the wastewater treatment plant (WWTP) in Ribadeo and
the La Rambleta Theatre in Valencia.
Particularly striking is the amount of contracted work pending
execution as of 31 December 2011, amounting to €2.337 million,
200 million more than a year earlier, during an economic crisis like
the present.
Upon analyzing the data difference, a decrease of €180 million in
the construction portfolio can be seen, following the fall in public
tenders in the second half of 2011, affected by parliamentary
elections that were held. This drop has been more than offset by
an increase of almost €50 million in the energy area and €270
million in public works mentioned in the solar and wind power
plants. The amount in the international order book has also tripled
over the previous year.
These key changes in the order book ensure peace of mind and
the continuity of business in the coming year, despite the general
economic context.
The reason for this positive growth can be found in the solvency
of Grupo Ortiz which is the company in the sector with the best
capitalization ratio with regards to revenue and with a controlled
debt which is lower than the industry average, is able meet the
capital needs of new works and investments and is considered a
bankable business by banks and other entities.
Grupo Ortiz’s strategic policy also contemplates carrying out
disinvestment in its mature businesses, mostly concessional,
that allows it to generate cash to deal with new investments and
projects.
In this sense, in 2011, it made the divestment of the IVIMA housing
rental business.
2011 has been an important financial year from the point of view
of management and cost control. On the one hand the economic
context has allowed the review and renegotiation of costs to
obtain significant savings. But the change in the composition
of production, with greater international presence and greater
diversification of business areas, has forced Grupo Ortiz to
reorganize their structure areas to suit new business needs, in
order to grow in support of the areas of greatest growth, mainly
international, and adjusting the others to the extent required.
9
Economic financial report
The continuity of the capitalisation policy of the Group, with a
dividend share of not more than 10% of its profits obtained, has
provided the Group equity in excess of €300 million as of December
31, 2011, with a total debt to equity rate of less than one, which is
an exception in the sector.
Noteworthy is the Group’s healthy balance sheet, showing that no
real estate assets were acquired at the height of the “boom” in real
estate, which would have resulted in the need for provision to adjust
them to match current market values. Its investment portfolio also
consists of companies that all generate results without the need to
rectify anything.
In terms of the evolution of the workforce which increased from
2,101 people on Dec. 31, 2011 compared to 1,926 at the end
of the previous year, resulting in an increase of 9%. A significant
increase in the Areas of Energy, International and Services; in this
last section, the building maintenance contracts entered into with
the Municipal District of the City of Madrid offset the reduction in the
workforce of the Construction Area due to the fall in tenders.
Total Assets*
(In millions of Euros)
900
800
835
700
600
674
668
2007
2008
724
765
2009
2010
584
500
400
406
300
200
100
0
2005
2006
2011**
* Consolidated figures
** Provisional
Workforce
2.500
2.000
2.101
1.500
1.669
1.689
1.780
2007
2008
2009
1.900
1.578
1.000
500
0
10
www.grupoortiz.com
2006
2010
2011
Bioclimatic building.
New Grupo Ortiz headquarters
11
Construction
East ring road of Aranda de Duero,
A1 intersection with BU-925, Burgos
AVE in Zaragoza
With over 51 years of experience,
Ortiz Construcciones, S.A. is an
established company in Spain and
enjoys a privileged status in the
Spanish construction scenario.
According to studies carried out by
specialized research companies,
Grupo Ortiz is among the top
twenty companies in revenue in the
construction sector, and among the
top ten in net worth, subscribed
capital and fixed assets; a solvency
which has been earned thanks to
the continuous and effective work
of those who form part of their
businesses, and the proper planning
of their resources.
12
www.grupoortiz.com
These figures rank Ortiz Construcciones, S.A.
among the mid-size to large Spanish companies
with all the necessary tools to continue
attaining greater market share due to essential
differences in their business approaches; the
continued capitalization of the Group; corporate
stability; the proper investment of capital gains
from the sale of land, or the low levels of debt
which are gradually eliminated using risk-free
recurring revenues.
All these factors make Grupo Ortiz a solvent
business network with a solid future. We will
continue to bring together its highly trained
technicians who base their daily work on
achieving a single objective: total customer
satisfaction.
Thus, in the past year 2011, and despite
the serious crisis affecting the industry,
our construction company and the other
companies moving in this sector have
achieved results in line with the current time
and have met one of our main goals: the
pursuit of profitability above and beyond
uncontrolled growth.
The activity, therefore, of our companies in
this sector during the past year has been
constant with outstanding projects in Civil
Works projects for Ortiz Construcciones such
as the work developed for the construction
of the extension in Sevilla Metro Line 1;
the construction of the solar thermal plant
“La Africana” in Cordoba; or the sports
centre in “Andrés Torrejón” in Móstoles
(Madrid). In the last months of the year, Ortiz
Construcciones, alone or as a Joint venture
(UTE), has been awarded major contracts
GRUPO ORTIZ
responsible growth
Grupo Ortiz Construction companies
Grupo Ortiz Railway companies
Grupo Ortiz Environmental companies
Comprehensive maintenance
of Valdebebas forest park, Madrid
such as the construction of the State Public
Library in Segovia; the construction of the
wind power plants “Santa Maria de Nieva”
in Almeria; a Framework Agreement with the
City of Madrid “ for subsidiary interventions,
emergency actions, safety measures and
emergency repairs in municipal buildings
for the Council of Madrid”; the UTE Soland
Center, which is part of Ortiz Construcciones
and is to build the Soland Center “ Business
and Services Headquarters Building “ in the
Technology Park for Business Innovation and
Renewable Energy in Sevilla; the contract
with Segipsa for the construction of a new
office building in Tarragona; subsidiary
execution work for the municipality of
Alcobendas, etc...
In a joint venture with another company in the
Group, CONDISA, we have been awarded
the contract for the construction of the Kueto
Social Centre in Sestao (Vizcaya).
Ballast tamper
Matisa R-21-LS
With INDITEC we have obtained the contract
for “the gardening and outdoor cleaning
service for the Hospital Universitario 12 de
Octubre”; the “Conservation and upgrading of
parkland, road trees, pots and planters in the
municipality of Ciudad Real “; and the contract
with the municipality of Estepona for “beach
cleaning and waste collection, preservation
maintenance and rehabilitation of public green
areas, parks and gardens in the municipality
of Estepona”; in addition to continuing the
comprehensive maintenance contract of
Valdebebas Forest Park in Madrid, among
others.
Ballast cleaning machine
Matisa C75
of the Framework Agreement for preventive
treatment of infrastructure, line and corrective
interventions in Iberian gauge lines for
the Conventional Maintenance Network
Headquarters in Orense; or the replacement of
metal structures in Granollers-Masanet section
of the high-speed line Tarragona-BarcelonaFrance. Repair interventions have also been
carried out on numerous narrow-gauge lines,
tunnels, embankments, etc...
In terms of railways, where the Grupo Ortiz
companies COSFESA and ICMA- PROAKIS
have a solid reputation, major work has
been carried out such as the construction
of infrastructure and line superstructure
on the connection of Line 1 of the Seville
Metro with Alcala de Guadaira; the renewal
13
Real Estate
84 rental dwellings with purchase option
on calle Huertas, Collado Villalba, Madrid
Since 1991, Grupo Ortiz, after
setting up the property developer
PRORAZ, has been steadily
operating in the real estate sector
with the purchase in 1996 and
1997 of a considerable number
of plots in urban developments
in Vallecas and Vereda de
Ganapanes, upon approval of the
General Plan in Madrid.
14
www.grupoortiz.com
PRORAX was joined in subsequent years by
companies like Urbanizadora GADE, AGRICASA
and Ortiz Inmobiliaria. Since then, our real estate
companies, along with Ortiz Construcciones,
SA, have promoted and delivered on more than
7,500 community housing homes, in addition to
1,500 rental homes completed for the Institute of
Housing in Madrid (IVIMA), 567 rental homes with
a purchase option (VPPAOC) that are managed
by Group companies, to which 750 free market
homes can be added.
These figures prove that Ortiz Inmobiliaria and
consequently Grupo Ortiz has established its
position in the housing market, increasing its
presence in this sector and even becoming a
driving force for some of the most significant
actions and housing developments in the
Community of Madrid; for example, the eight
developments built in the Vallecas Urban
Development Plan totalling 1,200 homes. It
is also significant that this trend has been
maintained over the years. Real estate and
construction companies in Grupo Ortiz focus
their activity on social housing which minimizes
promoter economic risk.
GRUPO ORTIZ
responsible growth
Grupo Ortiz Real Estate Companies
Alcalá “Development of 80 VPPAOC Dwellings
in Espartales, Alcalá de Henares, Madrid
“Altos del Jarama” Development of 180 VPPAOC Dwellings
in Paracuellos del Jarama, Madrid
Through its real estate companies, Grupo
Ortiz also has other business lines thanks to
its acquisition of rural lands, plots, car parks,
commercial premises and offices, which
allows the Real Estate area to continue to
play an important role in the Group’s financial
results.
In the past year, activity in the construction
sector has been steady for the Grupo Ortiz
companies. Developments have been
Residencial La Estación” Development of 97 VPPAOC
Dwellings in Colmenar Viejo, Madrid
delivered in Espartales, in Alcala de Henares;
in C/ Huertas and “La Chopera” both in
Collado Villalba and also in the Madrid suburb
of Móstoles.
“Residencial Manual Malasaña” Development of 118 VPPAOC
Dwellings on plot 1-2, lot 1, in Móstoles, Madrid
as well as a contract with the IVIMA for the
construction of 73 VPPAOC/OCJ (Young
People Programme) in Southern Móstoles
PAU 4 in Madrid.
In addition, work began to build a new
VPPAOC housing development in Fuenlabrada
and, most recently, a contract was signed
with the company Residential Entrenúcleos,
S.L. for the construction of 379 social housing
dwellings in the Seville town of Dos Hermanas,
15
Energy
Grupo Ortiz plans, coordinates and channels its activity in the Energy sector through
the ORTIZ ENERGÍA company, founded in 2010 and born out of the need to develop in
the same direction all the joint services of the companies within the Group whose lines
of business form part of the energy sectors.
16
www.grupoortiz.com
GRUPO ORTIZ
responsible growth
Grupo Ortiz Energy Companies
Detail of thermosolar panel at the thermosolar energy plant
“La Africana”, in Córdoba
17
Energy
Photovoltaic plant on the roof of the
new Industrial Engineering school in Málaga
This Division is becoming increasingly
important within the business organization
of Grupo Ortiz and was first formed in
2007 with the purchase of the companies
ELECOR and ELECFIRE, which were later
joined by IBERPROIN, a Group company
dedicated to primary and thermal energy
transportation and installations, creating a
single company since known as ELECOR.
The provision of energy services was
completed with the purchase in 2009 of
“Electricidad Juan Galindo” and “Tendidos
y Redes del Sur”, companies with a prime
position in the industry and who were to
complete the business possibilities in these
sectors.
18
www.grupoortiz.com
Ortiz Construcciones, ELECOR and
Eléctricas Juan Galindo have collaborated
on numerous projects for laying of lines
and the construction of High Voltage
substations, such as the electrical
substations of Fuencarral (Madrid), Segovia,
or Fuente de la Alcarria (Guadalajara), or the
latest ones in Villanueva de los Escuderos
(Cuenca), of 400 kV, and in Pesoz
(Asturias), also of 400 kV.
Our companies are specialized and trained
to lay highly complex HV/MV lines, like the
one currently being executed for the BANK
OF SPAIN at C/Alcalá 48 in Madrid, as part
of its Electrical Integration Plan, Phase 01.
This project consists of a dual redundant
underground MV supply and MV switching,
which is extremely difficult to execute as it
passes through four districts of downtown
Madrid in underground tunnels, under
footpaths and streets in the historic centre
of Madrid.
The Grupo Ortiz companies provide their
services to the electric companies in their
areas of power generation, distribution
and transportation, performing preventive
maintenance, troubleshooting, line
modifications and live wire work. In this
area, we should mention the recent
awarding of contracts for properties
listed in the areas of Castilla La Mancha,
Guadalajara and Toledo for Iberdrola
Distribución, Gas Natural and Endesa
Generación in the International arena.
In the area of nuclear power plant electrical
installations, ELECOR has an electrical
maintenance contract with the Trillo Nuclear
Power Plant (Guadalajara), in which it
has undertaken many major operations,
including changes in the +/- 24 V DC
system and the emergency safeguards
system, as well as the implementation of the
REDECA project (AC Electrical Redesign).
Regarding solar power plants, we should
mention the operation and maintenance
GRUPO ORTIZ
responsible growth
Substation eléctrica
de Fuencarral, Madrid
Maintenance of the electrical systems
at the nuclear energy plant in Trillo, Guadalajara
contract of the 7.8 MW PV plant in Alconera
(Badajoz), the 4 MW in Italy, 2 MW plant in
France, or the operation of the 700kW plant
for the new Engineering School in Málaga.
As regards Energy Production Plants
within the Special Regime, Grupo Ortiz has
several plants that are at full production
including the PV solar farms of Alconera
and Alange, both in the province of
Badajoz; in addition to two major projects
being currently developed: the first a solar
thermal plant called “La Africana” located
in Almodovar del Río, in the province of
Cordoba; the second two wind power
plants, called “Wind Project Maintenance
of the Electrical Systems” at the nuclear
energy plant in Trillo, Guadalajara; “Santa
María de Nieva I and II”, which is being built
in the towns of Vélez Rubio and Huércal
Overa in Almeria. Both projects will be
operational by late 2012 and represent an
investment of close to €500 million.
Installation work on
the high voltage grid.
19
Public works
During the last five years that the Public Works area has undergone
greater activity and growth, with more than 40 projects currently in
operation. For Grupo Ortiz this is not an entirely new business.
Residents’ ´ car park at
“Padre Méndez”, in Almería
PV plant at
Alange, Badajoz
Grupo Ortiz began investing in Public works
concessions back in 1997 when they
developed 13 projects to construct and rent
housing for the Housing Institute of Madrid
(IVIMA).
Those thirteen years of experience in the
complex world of public works have allowed
us, now supported by a healthy economy,
to now take on numerous projects of an
increasingly technical and profitable nature.
The common feature of all projects undertaken
over the years has been to minimize the
maximum risk in the operation, even going
as far as to cancel the risk of the concession
contracts to a large extent.
The public works area looks for diversification
basing its activities in different sectors:
Roads
Energy
C
ar parks
C
ultural-Sports
The Environment
In the Roads sector, Grupo Ortiz participates
in two shadow tolls concessions, which are
both currently in operation.
The first contract was signed with the Balearic
Government and concerns the construction
and maintenance of a stretch of dual
carriageway linking the airport of Ibiza and the
island. The contract was signed with Sociedad
Accesos de Ibiza S.A. in which Grupo Ortiz
has a 50 % share.
The second concession was signed with Viario
A-31, S.A., in which we have a 21% share
with the Ministry of Development and is a
contract for the renovation and conservation
of a section of the A-31 that connects Bonnet
and Alicante.
20
www.grupoortiz.com
All total, 118 kilometres of dual carriageway
taking into consideration the two contracts.
In the area of Energy, Grupo Ortiz has clearly
opted for renewable energy in all its forms,
participating in various projects such as: a
Solar thermal plant of 50 MW, a 50 MW wind
farm and various other Photovoltaic farms
(30 MW). The projects together amount to a
total of 130 MW spread throughout Spain. In
addition, Grupo Ortiz also operates a 1 MW
photovoltaic park located in Italy.
One of the most ambitious projects of Grupo
Ortiz is the Solar thermal plant called “La
Africana”, located in the province of Cordoba.
It is a 50 MW plant in which €386 million
was invested in June, 2011 and funded by a
finance project amounting to a debt of €293
million. The plant is based on a parabolic
trough system technology with an electric
energy storage capacity of 7.5 hours.
GRUPO ORTIZ
responsible growth
Grupo Ortiz Public Works
Dual-carriageway
Bonete-Alicante A31
Also very important for the Group has been the
recent signing of the development, construction
and operation of the wind farms of Santa
Maria de Nieva, located in the province of
Almeria. With 50 MWs of power, the €74 million
investment has recently been funded with a
total debt of €55 million also using the project
finance method. Noteworthy is the participation
in the investment of the ICO Axis fund.
In the area of the Environment, Grupo
Ortiz is participating in a water treatment
plant in Ribadeo which began operating in
September, 2011.
Finally, noteworthy is the construction of a
service station in Madrid, whose launch is
planned for mid 2012.
Public Works Concession projects by areas
Both the solar and wind projects will begin to
produce energy in 2012.
In the Car parks chapter, Grupo Ortiz operates
seven car parks in the Community of Madrid
(five in the capital and two in Villalba) and one
in the province of Zamora, involving a total of
3,072 parking spaces in operation, to which
an additional 822 will be added, construction
of which will begin during 2012, also in
Madrid.
In the Cultural - Sports sector, Grupo Ortiz
operates a cultural centre called “La Rambleta”
through the Bulevar del Arte y la Cultura S.A.
company in which our Group holds 33%. This
company has signed a concession agreement
with Valencia’s City Council based on a fee for
the investment and another for the farm so
there is no risk with the farm.
We also have a concession contract for a
sports centre with the company Body Factory,
specialists in the operation of this type of
centre. Located in the suburb of Mostoles¸
it is currently under construction and will be
operational in 2012.
1. Roads
B
onnet - Alicante dual carriageway A31.
N
ew Airport Access Dual-carriageway Ibiza,
Balearic Islands.
2. Energy
Solar thermal
S
olar thermal power plant “La Africana”, in
Cordoba, 49.9 MWs of power.
Wind
W
ind Farm Santa Maria de Nieva in Almeria,
49.5 MWs of power.
Photovoltaic
P
hotovoltaic solar plant; Alconera, Badajoz.
S
olar photovoltaic plant Two; Alconera,
“Altos del Jarama” development
with 180 VPPAOC dwellings
A
dministrative concession for the installation
and operation of a photovoltaic plant of
0.9 MW on the roof of the new Industrial
Engineering School in Malaga.
S
olar photovoltaic plant in Lecce, Italy.
3. Car parks
C
ar parks (2) and underground tunnel in
Collado Villalba, Madrid.
“Reyes Católicos” car park, Zamora.
R
esidents´ car park, “Alameda”, Madrid.
R
esidents´ car park “Andorra 2”, Madrid.
R
esidents´ cark park “Iliada”, Madrid.
R
esidents´ car park, “Juan Ramon Jimenez”,
Madrid.
R
esidents´ cark park “Poeta Leopoldo de
Luis”, Madrid.
E
scuelas Pías car park, Madrid.
4. Cultural-Sports
“ La Rambleta” theatre, Valencia.
S
ports Centre “Andrés Torrejón”, Móstoles
(Madrid).
5. Environment
W
WTP Ribadeo, Lugo.
6. Others
Service Station in Vallecas, Madrid.
Badajoz.
S
olar photovoltaic plant; Alange, Badajoz.
S
olar photovoltaic plant; Pozohondo, Albacete.
S
olar photovoltaic plant; Los Hinojosos, Cuenca.
21
International
“Malla Vial Sector 4” urban development unit contract
for the Bogotá City Council, Colombia
10 MW PV plant in Monteruga,
Puglia (Italy)
Grupo Ortiz bases its
external development
on a Diversification Plan
established a few years
ago with the aim that its
international business will
represent, within a short
period of time, 30% of its
annual production.
Our presence abroad, primarily in Latin
America and Eastern European countries,
has experienced strong momentum in recent
years, thanks certainly to the right approach to
geographical expansion which already reflects a
noteworthy increase in our production abroad.
2011 was a pivotal year for Grupo Ortiz´s
operations in Latin America largely due to the
economic slow down in Europe which produced
a compensation in the economic cycle with this
Continent and the great need of Latin American
countries to develop infrastructures and promote
social housing. It has also been a decisive
year for strengthening our presence in Eastern
Europe, encouraged by the huge development
being experienced by countries in Eastern
Europe with the availability of European Funds.
These were the main factors which influenced
our setting up activity in countries in which we
were already operating either by participating
in the shareholding of new construction
22
www.grupoortiz.com
companies or hand in hand with our subsidiaries
that already held contracts which they were
developing.
In response to these needs, since 2010 we
have established a stable presence through
our branches and / or subsidiaries in Peru and
Colombia; and, during this past year, we have
created subsidiaries and / or branches in Mexico,
Brazil and Panama, and are continuing with
specific bid tenders in Chile, Poland, Hungary,
Romania and Bulgaria through cooperation with
local partners.
Peru was the first Latin American country where
Group companies were active. Since 2010,
Ortiz International Investment, our international
company, has held a stake in the Peruvian
company EOM, a construction company with
significant activity in that country. Among
noteworthy works carried out are the different
buildings set aside for houses and commercial
premises in Lima and sanitation work in Trujillo.
GRUPO ORTIZ
responsible growth
Grupo Ortiz International Companies
International canal in Perú,
On the border with Ecuador
Social housing
in Santa Margarita de Piura, Perú
Eléctrica Juan Galindo, the Peru branch,
holds, together with Edelnor , the Peruvian
electricity company, a contract for the
Conservation and Maintenance of a section
of the electrical grid in Lima. In 2011, Ortiz
Construcciones y Proyectos SA, Peru branch
was awarded the work for the Improvement
of the Bambamarca-Celendín road for the
Regional Government Cajamarca and also
improvement works in Malecón de Zorritos, for
the Regional Government of Tumbes.
the implementation of the New Headquarters
of the company. Both works have a total
budget of €19 million.
Since May 2010 Group Ortiz has established
its presence in Colombia through the branch
of Ortiz Construcciones y Proyectos S.A.,
since then in charge of carrying out a road
improvement contract for the City Council
of Bogotá, amounting to around €40 million.
During 2011 Grupo Ortiz was awarded two
projects: one for the sewer and storm drain
Network in the Barrio Río Negro district for the
company that manages the water in Bogotá
water; and another for Aqueduct, as well as
Towards the end of this year, with the
guarantee of the economic and social situation
in Brazil, the subsidiary “Ortiz Construcciones
Brazil LTD “ was set up to opt for contracts for
infrastructure projects and social housing in
that country.
In mid-2011, Grupo Ortiz decided to begin
operations in Mexico so they set up a
subsidiary in that country and a branch of Ortiz
Construcciones y Proyectos, through which
during the last semester of the year they have
been tendered works for roads, shopping
centres, housing and others.
With regards to the development of Grupo
Ortiz activity in Eastern Europe, Poland and
Bulgaria are countries in which the group has
had an active presence since 2010 through
its companies Grupo Ortiz Polska and Ortiz
Elektra.
Currently the Ortiz Construcciones y
Proyectos branch is being set up in Hungary
where our presence is focused on railway
contracts. Within the Group´s Strategic plan,
and in accordance with its goal of international
expansion, we will shortly witness the
presence of the Group in Romania where there
are tenders being placed for works related to
the integrated water cycle and railways.
This clear commitment to Latin America will
expand during 2012 with the creation of a
branch in Panama and the introspection of the
Uruguayan market.
23
Directory
Grupo Ortiz Domestic Companies
GRUPO EMPRESARIAL ORTIZ, S.L.
ORTIZ, Construcciones
CONDISA, Compañía Internacional de
Construcción y Diseño, S.A.U.
ASTEISA, Tratamiento de Aguas, S.A.U.
INDAGSA, Indag, S.A.U.
INDITEC, Ingeniería y Diseños Técnicos, S.A.U.
ORTIZ international investment, S.L.
ORTIZ Área Inmobiliaria, S.L.U.
ORTIZ Energía, S.L.
PRORAX, S.A.U.
Avda. del Ensanche de Vallecas, 44
8051 Madrid
Tel. centralita: 913 431 600
COSFESA, Contratas y Servicios Ferroviarios, S.A.U.
C/ Ramón Cabanillas, 2 B local 2
32004 Ourense
Tel.: 988 231 561
IMPULSA GRUP ORTIZ S.L.
Avda. Diagonal, 579, 3ª planta
08014 Barcelona
Tel.: 931 935 183
Construcciones ICMA-PROAKIS, S.A.U.
C/ El Pedreru, parcela nº 5, Pol. Ind. Vega de Baiña
33682 Baiña · Mieres (Asturias)
Tel.: 985 231 020
JUAN GALINDO, S.L.
Autovía de Almería - Aeropuerto, km 5,7
04120 Almería
Tel.: 950 626 048
ELECOR, S.A.U.
C/ Pintor Casto Plasencia, 4
19004 Guadalajara
Tel. 949 212605
Avda. del Ensanche de Vallecas, 44
28051 Madrid
Tel.: 913 431 600
Tendidos y Redes del Sur, S.L.
Sector 20, C/ Hierro, s/n,
04009 Almería
Tel.: 950 622 831
Grupo Ortiz International Companies
ORTIZ POLSKA
Subsidiary company in Poland
Ul. Aleje Jerozolimskie, 99/19
02-001 Varsovia (Polonia)
Tel.: +48 228 21 98 75 · Fax: +48
226 27 02 49
ORTIZ COLOMBIA
Subsidiary company in Colombia
Calle 99, nº 11B - 14, casa nº 7
Bogotá (Colombia)
Tel.: +571 610 23 96
+571 616 32 74
ORTIZ PERÚ
Subsidiary company in Perú
C/ Antequera, 606
San Isidro, Lima (Perú)
Tel.: +511 660 21 27
GRUPO EOM
C/ Santa Luisa, 186
San Isidro, Lima (Perú)
Tel.: +56 99 09 44 326
ORTIZ CHILE
C/ Miraflores, 130, piso 16
Santiago de Chile (Chile)
Tel.: +56 99 09 44 326
ORTIZ BRASIL
Rua Minas de Prata, 30. 6º andar.
Itaim – São Paulo – SP – Brasil
CEP 04552-080 T
ORTIZ MÉXICO
Avd. Vasco de Quiroga 1900
PH-A. Delegación Alvaro Obregón.
Cod 01210 México DF
Tel.: 0 0525521672279
00525552924792
00525552928512
ORTIZ PANAMÁ
Calle Ricardo Arias. Edificio Esparta
Piso 1 Oficina. Ciudad de Panamá
Panamá
Tel.: 507-264-02-04
MEDSOLAR SPV10, S.R.L.
Viale Somalia, 28
00100 Roma (Italia)
Domestic Offices
Asturias
Castilla La Mancha
Islas Baleares
Castilla León
ICMA-PROAKIS
C/ El Pedreru, parcela nº 5,
Pol. Ind. Vega de Baiña
33682 Baiña · Mieres (Asturias)
Tel.: 985 231 020
Ortiz Construcciones
CONDISA
Avda. Mas del Rivero, 17, 1º
45004 Toledo
Tel.: 925 251 045
Andalucía
ELECOR
C/ Pintor Casto Plasencia, 4
19004 Guadalajara
Tel. 949 212 605
Ortiz Construcciones
C/ De la Maquinaria, 4, 2ª planta.
Edificio Confort
Pol. Ind. Son Valentí
07011 Palma de Mallorca (Baleares)
Tel.: 971 71 70 44 - 971 71 33 10
Ortiz Construcciones
CONDISA
Pza. Marcos Fernández, 2,
1º, Oficina F
47014 Valladolid
Tel.: 983 377 587
La Rioja
Cataluña
Ortiz Construcciones
C/ Hermanos Moroy, 22 3º Dcha.
26001 Logroño (La Rioja)
Tel.: 941 275 057
IMPULSA GRUP ORTIZ
Avda. Diagonal, 579, 3ª planta
08014 Barcelona
Tel.: 931 935 183
Ortiz Construcciones
C/ Luis Montoto, 107
41007 Sevilla
Tel.: 954 575 131
Juan Galindo, S.L.
Autovía de Almería - Aeropuerto,
km 5,7
04006 Almería
Tel.: 950 626 048
Extremadura
Ortiz Construcciones
C/ Eugenio Hermoso, 23 1º F
06800 Mérida (Badajoz)
Galicia
COSFESA
C/ Ramón Cabanillas, 2 B local 2
32004 Ourense
Tel.: 988 231 561
Comunidad Valenciana
Ortiz Construcciones
INDITEC
Avda. de Francia, 45, Esc. 1ª Piso 2º,
Puerta 3 46023 Valencia
Tel.: 963 255 875
Other offices and Centres
Almacén Central Grupo Ortiz
Avda. Barcelona, km 14,200 ·
28042 Madrid
Tel.: 913 291 809
Pre-cast concrete factory
INDAGSA
Ctra. N-320 a Torrelaguna, km 314,02
19170 El Casar (Guadalajara)
Tel.: 949 336 775
Responsible growth