This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at GAM cierra el primer semestre de 2012 con una caída del 30% en su cifra de negocio

GAM Closes the first semester of 2012 with a fall of 30% in his figure of business

12/09/2012

12 September 2012

General de Alquiler de Maquinaria (GAM) has closed the first half of 2012 with a consolidated sales of EUR 74 million, representing a reduction of the global turnover of 30% on 2011.

37% Of its turnover (27MM) comes already with the international activity (17% growth excluding Portugal). In Iberia, Portugal reduced their sales by 20%, while Spain by 41%, percentage of fall below that experienced the sector, which has more than 45% fall.

The business of GAM in Spain and Portugal has been affected by weak domestic demand, to which the company has faced a continued policy of austerity and its size adapted to the new conditions of the market, significantly reducing recurring costs by 34%. This effort has helped GAM maintain and improve its recurrent EBITDA margin over the previous year in 4 points.

In addition, the company has launched a series of business, intimately related to the integral management of the machinery, which complement the range of services that were offering to date, such as training, integrated logistics, preventive and corrective maintenance for industries and fleets of own equipment or rent, the buying and selling of equipment, etc. These new businesses begin to bear fruit and represent an important added value to customers.

GAM keeps an intense commercial activity in the countries in which it operates. During the first half of 2012 have opened a total of 10 delegations in Mexico (Monterrey, Guadalajara and Queretaro-San Luis), Peru (Arequipa and Piura), Chile (Antofagasta and Concepción) Colombia (Medellin) and Morocco (Casablanca and Kenitra). In the coming months will begin the activity in the Dominican Republic. The momentum of international operations, especially in area of Latin America is the main strategic focus of the company.

In terms of recurrent EBITDA, before provisions of traffic, GAM improves its margin despite the worsening of the environment, thanks to its policy of reducing costs in Spain. In this way the overall margin is 24%, compared to 21% in the same period of the previous year, being 38% margin that the international business.

Operating net profit attributable to the Group presents a negative result of 24 MM, which are entirely of activity in Spain. Additionally and following the renovation of its balance sheet policy initiated in past years, the company has taken the decision leave valued to zero its goodwill in Spain, which means to make a last endowment of 24MM, with the aim of contributing to improve future margins.

There is an additional allocation of 4MM reversal of tax in Spain credits and 5MM for extraordinary costs associated with cost reduction processes due to the decrease in business in Spain and Portugal.

The generation of box of the company has allowed him to continue to reduce its net debt, closing the half with a net debt of 355MM, to which must be added 59MM of convertible participatory loan underwritten by the banks shareholders within the refinancing agreements signed in March this year.