SABA - 2019 Annual Report - Financial information

7Financial Information

INTRODUCTION

In 2019, operating income from Saba's assets under management stood at 296 million euros (+ 33%), while EBITDA from management reached 138 million euros (+ 29%), with a 42% margin, which continues to be one of the highest in the entire sector internationally. The significant increase is explained by the fact that 2019 was the first year in which the new companies were consolidated into Saba as a consequence of the growth operation closed in December 2018 and have an impact on the Group's consolidated profit and loss statement.

Saba's salient figures reflect, on the one hand, this stable business performance and, on the other hand, the efforts made by the organization as a whole to increase the operational efficiency of the business, to implement initiatives that allow the company to become a leader in the sector—putting special emphasis on new support systems, new technologies and energy efficiency, as well as new formulas and commercial initiatives—and to actively manage contracts, focusing on growth. Among sales initiatives, the implementation of agreements in the field of new uses and habits of mobility (e.g. sharing, urban distribution, micro-distribution and electric charging) are worthy of mention.

Saba invested 37 million euros in the 2019 financial year, of which 13 million were for expansion projects. The 4 million euros stand out for the closing of the growth operation completed in 2018 and which made it possible to create a presence in four European countries.

The Group's evolution in the short and medium term is conditioned by the macroeconomic context of each country it operates in, together with local factors whose incidence is uneven. To these variables must be added, as a factor which occurred in 2020, the global pandemic caused by COVID-19. In this area, Saba is constantly monitoring the situation and the possible impact, both financial and non-financial, of the health crisis.

As in previous years, Saba continues with its expense optimization and management measures. The adaptation of sales channels, with special emphasis in the digital area, and products to meet current needs, is an indication of a line of work aimed at continuous improvement that should translate into greater profitability. The traditional policies of selective growth, based on profitability criteria and economic and legal certainty, as well as actions aimed at efficiently managing operations and technological innovation continue to be Saba’s principal lines of action.

Income by country

as of 31 December 2019