Financial Report 1st semester 2024

RESULTS REPORT

1ST HALF 2024

Translation into English of the Summary Report for the first half of year 2024 originally issued in Spanish. In the event of discrepancy, the Spanish language version prevails. In-house translation, under its sole responsibility and not deemed official

INDEX

1. Main events
2. Main consolidated figures
3. Evolution by activity
4. Financial statements
5. Order book
6. Legal Notice
7. Contact details

1. MAIN EVENTS OCCURRING DURING THE PERIOD

MAIN AWARDS:

The main works awarded to the SANJOSE Group during the second quarter of the 2024 financial year were the following:

• Oriole Village - Quinta da Ombria (Plot D) in Morgado de Tôr - Loulé, Algarve
  Quinta da Ombria - Fundo Especial Fechado de Investimento Imobiliário has awarded to SANJOSE Constructora Portugal the construction work for Oriole Village (Plot D) part of the 5-star Quinta da Ombria "Tourist Village", in the central Algarve. It covers an area of more than 70 hectares formed by green spaces and all kinds of services and amenities. The awarded project, which represents more than 23,000 m2 of built-up surface area, includes the construction of 83 residential units (26 semi-detached, 24 terraced, 12 villas and 21 apartments) with views of the golf course and the natural landscape.
• Three residential Subsidised Housing units for EMVISESA in Palmas Altas Sur, Seville
  The Empresa Municipal de Vivienda, Suelo y Equipamientos (EMVISESA) of Seville has awarded to SANJOSE the construction work for three subsidised leasehold housing projects for EMVISESA in Palmas Altas Sur in Seville. These add up to a total of 415 dwellings and more than 45,000 m2 of built-up surface area, distributed in several buildings. The three developments will have swimming pools and carefully designed common areas offering all kinds of facilities.
• Kronos ZEN Residential Complex, Lisbon
  KIG do Paço Unipessoal (Kronos Dwellings) has awarded to SANJOSE Constructora Portugal the building work for a 25,000 m2 residential complex with a built-up surface area comprised of 3 buildings with a shared foundation and formed by 169 dwellings, underground parking with 214 spaces, storage rooms, a multipurpose room and outdoor common areas perfectly combined with a large green area containing a swimming pool for adults, a children's swimming pool and a playground, etc.
• Son Marill Residential Complex, Palma de Mallorca
  Promotora Reina 1957 has awarded SANJOSE Constructora the building work for this new residential complex consisting of 3 buildings formed by 51 dwellings with 2 to 4 bedrooms each (all with a terrace or solarium) and two parking spaces and a storage room in the basement, also offering residents a wide range of services: community swimming pool, gardens, recreational area and two parking spaces and a spare room in the basement.
• Co-operativehousing for social leaseholds in Parque Alameda 1, Valladolid
  The Sociedad Pública de Infraestructuras y Medio Ambiente de Castilla y León has awarded SANJOSE Constructora the project and construction work, applying the Building Information Modelling (BIM) technique, for a residential development of 152 co-operative dwellings in Valladolid under the Legal Protection Regime intended for social leaseholds, aimed mainly at young people.
• Asera Algodonera Residential Protected Housing, Seville
  Àrqura Homes, Fondo de Activos Bancarios has awarded SANJOSE Constructora the building work for a residential complex of approximately 18,000 m2 of built-up area formed by 160 protected dwellings, parking spaces, storage rooms, and various common areas, of which its garden areas and an outdoor communal swimming pool should be highlighted.

• Residencial Torremagna, Seville
  Metrovacesa has awarded SANJOSE Constructora the construction works, under a Green Certificate, of this new multi-family "L" shaped residential complex in Seville of more than 14,000 m2 of built-up surface area which includes 91 dwellings with 2 to 4 bedrooms each, parking spaces, storage rooms and large common spaces with swimming pools, communal premises, children's play area and a raised square for the exclusive enjoyment of residents.
• Marineda City Shopping Centre, A Coruña
  Merlin Retail has awarded SANJOSE Constructora the comprehensive refurbishment works of the old Corte Inglés department store, so it can be incorporated into the Marineda City Shopping Centre of A Coruña, the largest mall in Galicia and the third largest in Spain. The project designed by L35 Arquitectos, will require building a new atrium and a large skylight, which will provide natural light to the new premises, refurbishing the old building, and remodelling the evacuation routes and various spaces, as well as redefining the necessary facilities. The new centre will gain a large central square constituting the new heart of the shopping complex and will give the premises more space and natural light stemming from the future skylight, a key element of the project.
• Coworking Avenida General Perón 40, Madrid
  Mapfre Vida has awarded SANJOSE Constructora the building work, to be carried out to LEED Gold Certification standards, to convert the Moda Shopping Centre into a coworking space with covered areas and a roof terrace. The project, which will cover a built-up surface area of approximately 10,000 m2, will mainly require internal and external refurbishment work, and one-off restructuring, remodelling and renovating facilities.
• Round Hill Fire Station, Virginia (USA)
  Loudoun County has awarded SANJOSE Construction Group the construction work for a new building and several improvements associated with developing the plot occupied by the Round Hill Fire Station in Virginia. The project, which will be carried out under a LEED Silver certification, includes 4 lines for rescue and fire vehicles, offices, rooms, a training room, a gym, rest areas, a canteen, laundry, decontamination and storage areas together with a repair workshop, etc.
• Hotel Ribera de Triana 4 stars, Seville
  Urlondo has awarded Cartuja I. the refurbishment and structural extension works to build a total of 150 hotel rooms, as well as the refurbishment and modernisation of its common areas, including a covered area with a swimming pool and restaurant.
• Hotel Zenit 4 stars, Carrera Capuchinos 18-20-22 in Malaga
  Hotel Zenit Olletas has awarded Cartuja I. the building work for a new 4-star hotel with 70 rooms (10 suites) in Carrera Capuchinos 18-20-22 in Malaga. It will consist of 2 floors below ground level (parking and facilities) and four above ground: the ground floor will be used for the reception area and rooms, the first and second floors for rooms, and a covered floor for suites, a swimming pool and a restaurant.
• Colegio de los Sagrados Corazones - Martín de los Heros, Madrid
  The Colegio de los Sagrados Corazones has awarded SANJOSE Constructora the comprehensive renovation and renewal construction work for this state-subsidised centre for an infant school, together with primary, secondary and baccalaureate education levels, located in the Madrid neighbourhood of Argüelles, and belonging to the Moncloa-Aravaca district.

• Waste collection service, street cleaning and managing the recycling centre in Paracuellos de Jarama, Madrid
  The City Council of Paracuellos de Jarama has awarded SANJOSE Constructora, in a joint venture with El Ejidillo Viveros integrales, contracts for the urban solid waste collection service, street cleaning, the waste transfer and clean point in this town in the region of Madrid. Specifically, the territorial scope for the service provision is the municipality of Paracuellos de Jarama, therefore it covers the town's urban centre, Belvís de Jarama, Miramadrid, Altos de Jarama, Picón I and II, Valtibañez, Los Berrocales and the La Paleta Development, the Industrial Estate, the BROPAC Facilities, and the Spanish Space Agency (INTA) Village.
• Maintaining and improving the existing green areas in Zone H of Canal Isabel II, Madrid
  Canal de Isabel II has awarded SANJOSE Constructora, in a joint venture with El Ejidillo Viveros Integrales, the maintenance and improvement services for the existing green areas in Zone H of the canal, including all the work related to the comprehensive maintenance of green areas carried out periodically, daily or seasonally guaranteeing an optimal state of conservation and the plant and ornamental development of all the existing vegetation. The facilities subject to conservation and improvement are: the cantons of Moratalaz and Casa Campo, the wastewater plants of Galapagar and El Endrinal in Collado Villalba, the Torrelaguna drinking water plant, the San Blas deposit, and the dams of Pedrezuela and Vado in Guadalajara.

AWARDS AND RECOGNITIONS:

• The Verdelago 5 Star Resort in Algarve recognised with three awards in Portugal
  Verdelago is a luxury resort in a natural environment covering more than 80 hectares, its highlights are its low construction density and its awareness of sustainability and the preservation of biodiversity. SANJOSE Constructora built Phase I, which includes: 102 housing units (from villas to apartments of diverse capacity and size), several support infrastructures, the so-called "Clube do Aldeamento" which serves the entire tourist village by housing the reception services and the main restaurant, together with a wide range of services including swimming pools, a children's club, bars, a local produce market, sports facilities, etc. SANJOSE is currently building Phase II, which includes the construction of 54 additional housing units. Both phases add up to approximately 40,000 m2 of built-up surface area.
  This unique project has received the following awards:
• • The SIL (Portuguese Property Show) Prize 2024 for the Best New Build Property Project - Tourism.
  • The SIL (Portuguese Property Show) prize 2024 for Innovation - Project.
  • The Portuguese National Property Award 2024 ("Magazine Imobiliário") for the best project in the Tourism Category.
• Architizer A+Awards 2024 Award for The Flower Tower Magnolia Residence in Leça da Palmeira, Matosinhos (Portugal)
  The jury of the Architizer A+Awards 2024 awarded the prize in the High-Rise Housing Category (+16 Floors) to this unique project of more than 20,000 m2 of built-up surface area constructed by SANJOSE following the design of OODA Architecture. It is outstanding due to the mixture of simplicity and modernity of its architecture of which the desynchronised balconies between each floor can be highlighted.

The residential tower block is based on a square floor plan of 26 x 26 metres, it is approximately 65 metres high and has 21 floors above ground and 3 underground. It mainly houses 108 dwellings of various types, 4 commercial premises, 139 parking spaces and various common areas with a gym and a large and versatile multipurpose room with access to the outside, created for all kinds of meetings and to meet residents' requirements.

OTHER HIGHLIGHTS:

• The San José Hospital in Casablanca (Chile) opens its doors to the community with Primary Health Care
  This hospital built by SANJOSE was opened in April. It represents an important advance in the healthcare infrastructure of the Chilean region of Valparaíso, contributing significantly to improving access to and quality of medical care for more than 30,000 inhabitants, offering cutting-edge health services to people living in the area.
  San José Hospital in Casablanca offers a wide range of services guaranteeing comprehensive care for the needs of the community, including emergency care, imaging, dental care, and vaccination, it has a laboratory, a pharmacy, medical consultation rooms, a rehabilitation and stimulation room, etc.
• USIL inaugurates the Augusto Ferrero Costa Smart Building in Lima (Peru)
  San Ignacio de Loyola University (USIL) inaugurated this modern building in April, built following LEED certification, thus demonstrating its commitment to cutting-edge education and innovation in Peru.
  SANJOSE carried out work on the building in the fields of architecture, medium voltage electrical installation, sanitation, mechanical, firefighting, communications, diesel and gas systems, and Building Management Systems (BMS). The building covers a built-up surface area of more than 15,000 m2 distributed over 9 floors above ground, plus a loft and 6 underground floors, it has among its facilities administrative offices, meeting rooms, classrooms, laboratories, coworking areas, etc.
• The President of the Community of Madrid visits the dwellings built by SANJOSE in Torrejón de Ardoz under the VIVE Plan
  In June the President of the Community of Madrid, Ms Isabel Díaz Ayuso, visited the development of 137 affordable leasehold dwellings built under the Plan Vive in Torrejón de Ardoz. The regional government will allocate them in October, and they have already been placed on the market
  It should be noted that in their construction, a commitment was made to: i) use an industrialised technique, thus significantly reducing building times and, ii) public-private cooperation as an effective land management solution, an innovative model in which other regions and countries have shown an interest.
  SANJOSE Constructora is the delegated developer to manage projects, permits and building for the Ares Management Real Estate fund, which won, via Avalon Properties, the 50-year concession for Lots I and II of the Community of Madrid for the construction and management of leasehold properties and the maintenance of 3,582 dwellings with 1 to 3 bedrooms (1,701 Lot I and 1,881 Lot II). This will cover more than 410,000 m2 of built-up surface area in Valdebebas - Madrid, Torrelodones, Alcalá de Henares, Colmenar Viejo, Getafe, San Sebastián de los Reyes, Tres Cantos, Móstoles, Alcorcón and those already mentioned in Torrejón de Ardoz.

2. MAIN CONSOLIDATED FIGURES

The main consolidated figures for the SANJOSE Group for the first half of 2024 are shown below:

Thousands of euros

The following should be highlighted:

• EBITDA at 31.3 million euros, representing a margin of 4.1%.
• Turnover at 758.7 million euros, an increase of 17.8% compared to the same period of the 2023 financial year.
• Profit before tax goes up to 22.8 million euros, an increase of 26.9%.
• Net profit at 21.9 million euros, an increase of 100.9%.

Turnover

The cumulative net turnover of the SANJOSE Group for the first half of the 2024 financial year stands at 758.7 million euros.

The SANJOSE Group's main activity is construction, representing 92.1% of the Group's total turnover, accounting for 81% of the Group's total order book at the end of the period.

The breakdown of Grupo SANJOSE's turnover by activity is as follows:

Thousands of euros

The domestic market is very strong, having experienced a growth of 24.7% compared to the same period of the previous financial year, and represents 85% of the Group's total revenue.

The turnover obtained in international markets amounts to 116.6 million euros, and represents 15% of the Group's total revenue for the period.

Thousands of euros

Results:

The gross operating profit (EBITDA) of Grupo SANJOSE for the first half of the 2024 financial year amounts to 31.3 million euros, representing a margin of 4.1% over the net turnover amount.

The breakdown of EBITDA by activity is as follows:

Thousands of euros

The operating profit (EBIT) of the SANJOSE Group stands at 21.9 million euros, representing a margin of 2.9% over net turnover (3.1% in the first half of the 2023 financial year).

The net balance of the SANJOSE Group stands at 21.9 million euros, experiencing an increase of 100.9% compared to the same period of the 2023 financial year.

Net cash position:

The SANJOSE Group's net cash position at the end of the first half of the 2024 financial year is a positive cash flow amounting to 330.1 million euros (295.7 million euros at the end of the 2023 financial year).

3. EVOLUTION BY ACTIVITY

3.1 Construction:

The income obtained in the first half of the 2024 financial year in this line of activity amounts to 698.6 million euros, experiencing an increase of 22.5% with respect to the same period of the 2023 financial year.

EBITDA stands at 25.5 million euros, representing a margin of 3.7% with respect to turnover (3.5% in the first half of the 2023 financial year).

The profit before tax went up to 18.4 million euros, having experienced an increase of 159.9% compared to the same period of the 2023 financial year.

As of 30 June 2024, the volume of the construction portfolio contracted by the Group amounted to 2,269 million euros, having experienced an increase of 7.7% compared to the end of the 2023 financial year.

Thousands of euros

The breakdown of the turnover of the SANJOSE Group from this activity, taking into account the main lines of business comprising it, as well as the geographical area, is as follows:

Thousands of euros

The figure for construction revenue at the national level stands at 599.8 million euros, having experienced an increase compared to the same period of the 2023 financial year of 27.4%, representing 86% of the total for this line of activity.

The revenue figure from construction activity in the international arena stands at 98.8 million euros, representing 14% of the total.