Good morning, and thank you for joining this first half of 2022 results presentation. As always, we'll briefly analyze the key aspects of our results, which were released yesterday, followed by a Q&A session. The main figures of this first semester, sales increased by 15.6% to EUR 15.4 billion, above the pre-pandemic levels. There is a significant positive currency impact due to the strengthening of US dollar. FX-adjusted sales grew by 7.9%, thanks to the positive evolution across activities and regions. Backlog reached EUR 69.2 billion, with a positive evolution across regions and activities. Adjusted by FX, backlog grew by 6.5%.
Worth noting is the rebound of the U.S. backlog with 8.5% increase in local currency, thanks to the significant awards over a period which in the first half of the year increased by 25%. EBITDA reached EUR 816 million, and EBIT stood at EUR 547 million, increased by 10.7% and 13.7% respectively. All activities had a positive operating performance, especially highlighting the recovery of traffic of the highways of availability above pre-pandemic levels. Its contribution to the group doubled to EUR 64 million compared to the first half of 2021. Net operating margin remains practically stable. Minor deviations in operating margin reflect business mix variation.
You know, for some reason, the US has a lower margin than the rest of the countries, and temporary changes in the cost structure, for instance, major civil work projects in Australia, and that finished the EUR 10 million portion of the job. Net profit from operating margin activities stood at EUR 265 million, growing by 24.5%, supported by the positive performance of the business together with the acquisition of minorities of CIMIC and the push from Arval's contribution. The group net profit reached EUR 330 million and includes capital gains from asset disposal.
As of June 22, the group held a net cash position of EUR 1.044 billion, improving by EUR 4 billion in the last 12 months after the sale of Industrial Services activity in December 2021, and after the acquisition of CIMIC and by approximately EUR 1 billion. Year-to-date, net cash went down by roughly EUR 1 billion, which was allocated into buyout of CIMIC minorities. Geographical breakdown. After the disposal of Industrial Services in 2021, the group sales and backlog rebalanced towards its core associated regions. Sales in America increased up to 62%, of which 55% comes from the U.S. market, 6% from Canada, and the remaining 1% from Latin America. Australia represents 19% of total sales, and Europe represents 16%.
It's still been Spain, the core market of the region, representing 10% of overall sales of the group, followed by Germany and United Kingdom. The backlog shows a similar distribution, with 55 allocated in North America, that is U.S. and Canada, growing by 21%. Asia Pacific is mainly represented by Australian market, whose backlog grows by 15%. Similarly, 70% of the backlog is allocated in Europe. Net profit by activity. Construction net profit amounted to EUR 170 million, up by 11.7%, driven by the positive performance of the operating companies together with the buyout of CIMIC minorities. Concessions net profit raised to EUR 79 million, driven by a EUR 52 million contribution from Arval in the period, while last year's was less than half of it.
As we've said, the outstanding general increase in traffic rates explain this role. Service net profit reached EUR 16 million, recovering pre-pandemic levels. This positive performance of the business raised net profit from operating activities to EUR 265 million, which is almost 25% year- on- year. Finally, ACS headquarters account of EUR 65 million, which includes some capital gains from the energy asset disposals as the 25% stake in the Spanish photovoltaic plant sold to Galp. Overall, the group's net profit reached EUR 330 million. Let's give some update to our operating activities. In construction, sales went up by 16.1%, consolidating growth trends across regions supported by the US's strength. FX-adjusted construction sales grew by 7.9%. Europe and Australia experienced double-digit sales growth, while more important, it is the US market rebound recovering pre-pandemic hit.
Our decentralized structure and low operating leverage activities support margin stability, also helped by the implementation of operating measures to mitigate inflationary pressures and supply chain disruptions. As we said before, minor deviations in operating margins reflect business mix variations. As we said, higher growth in America, where margins are temporarily lower and temporary changes in the cost structure. Construction backlog remains solid, growing by 6.6% FX-adjusted. Worth noting is the rebound in the US backlog with 8.5% local currency growth, thanks to the significant awards in the period. It increased 25% from the first half of 2021. Getting into concessions, EBITDA raised EUR 85 million, thanks to the outperformance of Abertis, which contributed EUR 64 million. Abertis's average daily traffic. In the first half, it rose by 17.5%.
Traffic level recovery demonstrates the ongoing improvement that began in the last half of 2021, showing positive traffic trends above pre-pandemic levels in most geographies. Individual countries performance followed France +25%, Spain +31%, Italy +24%, Brazil +7%, Chile +35%, Mexico +11%, and USA +3%. This positive operating performance, driven principally by traffic recovery, offset the expiry of some concessions such as Acesa, enabling Abertis net profit PPA to reach EUR 285 million, an 8.5% increase year- on- year. Net contribution to ACS profit accounted for EUR 52 million, doubling from previous year. Also in April, Abertis distributed EUR 302 million of dividends, of which EUR 297 million belong to the ACS Group.
Service activities, both sales and operating margins, evolved positively, bringing back profitability to pre-pandemic levels. In detail, sales reached EUR 905 million, growing by 10.7%, coming from both domestic and international markets. Margins recovered from pandemic levels, raising EBIT to EUR 27 million. Positive evolution of the backlog stood at EUR 2.7 billion, and growth came both from domestic and UK market. Recently acquired subsidiaries in the UK contributed to market outperformance. Year-to-date, the group generated cash flow from operations before CapEx and working capital of EUR 895 million, which is 19% better than last year’s in the same period. Working capital outflow, which amounted to EUR 640 million year-on-year, is always affected by seasonal effect. Offsetting the 12-month variation remains practically neutral.
CapEx and operating lease payments in the first half of the year, EUR 491 million, while asset rotation amounted to EUR 277 million. After EUR 408 million cash outflow related to the ACS shareholder remuneration in the first quarter and some minor adjustments, net cash position remains virtually stable since the beginning of the year. After the acquisition of CIMIC minorities, which amounted to EUR 985 million, the group net cash balance at the end of June was EUR 1.04 billion. Last 12-month debt evolution. In the last 12 months, we see the following, the funds generated from operations activities, which include asset rotation from transport and energy infrastructures, drove down debt in EUR 1.1 billion.
The sale of Industrial Services division in 2021 year-end implied a cash inflow of EUR 4.9 billion, placing the group net cash in a net cash position. Shareholder remuneration amounted to EUR 1.1 billion. In the first half of 2022, the full cash impact of CIMIC takeover bid implies a cash outflow of almost EUR 1 billion. Overall, we came from EUR 3 billion net debt as of June 2021 to EUR 1 billion net cash as of June 2022. Recent awards. Some of our recent awards during the first half of 2022, just to give you some color, in Australia, works for the Sydney Metro Western Sydney Airport link with EUR 295 million. Development of the tunneling works for Western Harbour Tunnel in Sydney, EUR 250 million.
In North America, construction of a 16.2-mile light rail transit from Bethesda to New Carrollton, Maryland, EUR 1.3 billion. The construction of a health education building of Lexington campus, the University of Kentucky, EUR 225 billion. In Europe, the contract for widening the riverbed of the Bečva River preventing from flooding in the Czech Republic, EUR 278 million. The expansion of line eleven Metro de Madrid by adding five stations around 7 km in Madrid, EUR 230 million. They're just to name a few in geography. In the last 12 months, the new awards amounted to over EUR 36 billion, growing by 20%.
This outperformance in order intake, which significantly after the slowdown in 2020 due to the pandemic, has driven the group's backlog to historical record highs across activities and core regions, especially in the U.S., that represents half of our backlog, and Australia, where we have been able to offset the diminishing of activity in neighboring countries. This solid trend provides us visibility confirming the positive outlook for the coming years. Before concluding this presentation, I'd like to give you a brief color of the current sector outlook, where we see favorable perspectives for the coming years. There's a strong demand for infrastructure globally. This demand comes mainly from population growth in urban areas. There are also other powerful drivers, such as energy transition, backed by important global initiatives and commitments from countries, institutions and organizations.
In addition, the G20 governments have announced a $3.2 trillion, which is approximately 4.6% of the total GDP of these countries, of infrastructure investment as a stimulus, the U.S. Bipartisan Infrastructure Law being one of the most relevant, with approved $1.23 trillion in U.S. dollars investment over the next 10 years. This is about $500 billion on top of the baseline of the regular investments. This plan is the largest federal investment in infrastructure ever, and the key point is that it's a full-blown need to revamp the infrastructure network in the country.
Also in Australia, where the infrastructure investment budget of the federal and state governments are almost AUD 250 billion for the next years, and in Europe with the Next Generation EU funds. We believe we are prepared for these opportunities and also for challenges in the sector is facing, which you all know, inflation, supply chain disruptions and resource scarcity. Despite the recent events, we have been able to manage them throughout our local business and operation, focusing on client needs and efficient use of capital. Let me ask to conclude, highlight the key takeaways of this first half 2022. One, a strong operating performance with solid cash flow generation. Two, a robust financial position, even after completing CIMIC takeover with the EUR 1 billion net cash position.
Third, an attractive shareholder remuneration with AGM approving a stable dividend policy of EUR 2 per share. Four, an order intake pushing backlog to record highs, which provides good near-term visibility. As you've seen, in this transition year, we continue moving forward in the simplification of our corporate structure and reinvesting proceeds in concessions. I'm sure we'll have more input very soon. Thank you very much for attending this conference. Now we are ready to answer any questions that you might have.
Ladies and gentlemen, the Q&A session starts now. If you wish to ask a question, please press zero one on your telephone keypad. Please be informed that there might be a short silence while questions are being registered. Thank you. Ladies and gentlemen, let me remind you, in order to ask a question, please press zero one on your telephone keypad. Thank you. The first question comes from Beltrán Palazuelo from DLTV. Please go ahead.
Hello. Good morning. Thank you very much for detailed presentation and for the strong results. I would like to ask a question regarding a thing you just mentioned there earlier, investment in concessions directly through Iridium or through Abertis. Could you give a little bit more detail how you're seeing the landscape globally, let's say, with the slowdown or with more uncertainty? Are you seeing more opportunities to reinvest your strong balance sheet in concessions? It would be very helpful to see what you're analyzing currently.
Well, as you can imagine, we are looking at different markets and different assets. Obviously, in our core markets, basically U.S., Europe and Australia. I think very soon we'll be able to provide you with the specific information once the concessions have been obtained. Obviously it wouldn't be wise to disclose where the negotiations are ongoing. We have hopes that in not too long a period, we'll be able to make some announcements. My apologies for not being more transparent, but obviously that would handicap the negotiations.
Okay. Thank you very much for your detailed answer.
Thank you. The next question comes from Bosco Ojeda from UBS. Please go ahead.
Hi. Good morning. A couple of questions from me. The first, if I could follow up on the previous question, what do you think is your firepower for those sort of concession investment? Is it EUR 1 billion, EUR 2 billion, EUR 3 billion, EUR 5 billion, or what sort of size do you think you could access with your current balance sheet? Second question on the construction area, given the complexities around there on cost and number of things. What do you think is the outlook for the end of the year for margins? Are you identifying any particular works where you might have some trouble, or clients or any delays in payment there? Is everything under control, or should we be a bit fearful about potential delays? Thank you.
Thank you, Bosco. I guess as far as firepower, we don't have to show off the muscle, but you know that we are now EUR 1 billion in cash. Before the transaction with Industrial Services, you have close to EUR 3.5 billion net debt, so it's close to EUR 5 billion firepower. If you combine that as an equity component with addition, which you can also lever depending what type of asset, the amount is meaningful. It depends very much on the type of project and the currency, the risk you have to take and the IRR in which you are investing. Basically, we think we have a significant firepower.
If they were to be through Abertis, our partners, Atlantia, have manifested their willingness to contribute and support the growth on a 50/50 basis. In terms of firepower for concessions, it's probably more firepower than attractive concessions in the market. There is a lot of money and other investors searching the same assets. I don't think we'll have a problem with that. In terms of construction, you've been in the business for quite some time. The inflationary pressure is real. I think we've got the situation fairly well under control. Don't forget that about 40% of our backlog comes from Turner, which is a cost-plus business. We've got about 35% of our backlog, which is services, UGL and Clece.
Basically, they do not have the cost of materials as a significant portion. The remainder, which is building, more often than not, this have escalation clauses now. In the large civil works, the ones which you have in Australia, they are mostly of them are alliance, where you have capped the risk and the new price has its escalation. If I'd have to give you a figure, we might have 5%-10% of jobs which are without inflation protection, but this is basically all we have, and it's being managed prudently. The purchasing in the building project, which they are much shorter in time, you can advance from the beginning, so you have the acquisition of the raw materials close to the beginning of the jobs.
The inflation then you are going to face is pretty much the one you have considering the in the building. We're not very concerned with that. You have to manage carefully, but we do not see any major problem being created by that.
Okay. Perfect. Thank you.
Thank you, Bosco Ojeda.
Thank you. Ladies and gentlemen, let me remind you, in order to ask a question, please press zero one on your telephone keypad. Thank you. The next question comes from Fernando Lafuente from Alantra Equities. Please go ahead.
Hello. Good morning, everyone. Ángel, I just wanna follow up on, and I guess the question is a little bit tricky. Just follow up on your focus on growing in concessions. One sentence that you said at the end of your presentation that we will hear something soon. Was wondering, obviously, I don't want you to tell me the what are you thinking of, but what should we expect going forward in this strategy to grow in concessions? It's a strategy focused on transportation assets, or could be any other concession and not necessarily through your Abertis or through Abertis. Thank you so much.
Well, as you know, Fernando, we've got here two shooting guns. The traditional brownfield normally they come through the Abertis investment portfolio. The company which scans the market, the one who knows what is going on, is Iridium. They look around. If it is a brownfield, obviously they present it to Abertis, which normally studies in detail with the involvement of all the shareholders. If it is a greenfield, normally the process is similar, but Iridium identifies, look at the construction cost with Dragados normally. After realizing the price, and that obviously makes attractive investments, then we talk about it with Atlantia. In the past, they didn't want to get into greenfields. I think that might change.
If they say they don't like it, then we go ahead in our own route with other partners. This will probably change. I think Abertis is also considering to participate in greenfield, but the process is the same. I think we are pursuing both green and brownfield. We'll see how successful we are.
Thank you.
Yeah, just to add on that, probably one of the things which has changed is the attitude of Atlantia, which is now much more focused in the investment. They've incorporated through this public offer Blackstone in the shareholding. They are very united with a clear idea to grow. Basically, both shareholders have the same objective, very much aligned. We talk with them openly and share views and objectives. I think this will give Abertis more time. In the case of Iridium, it's very easy because we are ourselves alone, and there is a tremendous amount of money willing to join up with us. The experience that Iridium has is very valued in the market.
We got a list of investors which are always willing to be coming with us in the project.
Sorry, Angel. A follow-up on this. On other kind of concessions, not transport, I mean, not the pure toll roads.
Well.
Are you considering looking at it?
We are looking at most everything that moves in terms of concession. Obviously, in Europe, we do not do any investments in the renewable business outside of our agreement with ACS. A different story is in Australia. UGL is investing in renewable. That is something that we will continue. There's quite a lot of opportunities in that market. We are seeing other concessions. I must say that obviously, they don't have also in tons. They've got a few, and we look at them all. The focus is the transportation concession.
The last one, sorry. Are you seeing, I guess, the same levels of competition from these financial investors for concession assets even after the increase in interest rates, or has it diminished somehow?
No. The type of investors are pension companies and insurance companies and pure financial investors. The problem they have, or we have with them, is that they are very aggressive in pursuing returns. They were able to live with very low yields. That I think is going to change. It's going to be a bit easier, the competition with. We're finding people investing at 4% IRRs, which obviously didn't make sense for industrial investor. That is going to probably be reduced.
Okay. Thank you. Have a nice holidays.
Thank you.
Thank you. The next question comes from João Safara from Banco Santander. Please go ahead.
Yes. Hi, good morning. I mean, most of my questions have been answered. Just a very quick one. I mean, we've seen this quarter that you've accelerated the divestment in terms of your non-core assets. Is this something that we'll continue to see in the near future? How much are still there to sell? Roughly EUR 600 million, if I recall correctly. But if you could update us on that, it would be helpful. Thank you very much.
Okay. Thank you. Well, basically, as you know, we're in a year of a transition. We come from a model where we have construction, Industrial Services, and services, and with a very small leg in concessions. Now we're moving to a new business model, which is construction, concession, and services. We are changing from one model to the other, which obviously implies deploying the capital we've obtained into concessions and also simplification of the group. Having that in mind, we have some assets which come from our old Industrial Services activity, which we have for sale. It is not burning in our pocket, so we can keep them for a while. As long as we see a price which really recognizes what we perceive is its value, we'll sell them.
We'll keep on seeing this rotation of assets, but without a tremendous urgency. We'll see. If we think that the market is going to improve a few months later, we'll wait. If we think it is basically there, we'll sell them. There is appetite for this type of assets. We'll sell them, but without huge capital gains because those assets were put in market value when the transaction took place. It's more generating liquidity. Maybe give or take a few million EUR in capital gain, but nothing outstanding.
Just a follow-up question regarding the capital gain. The EUR 65 million you booked as discontinued operations, is this all a capital gain? Is this all related with solar PV, or it also includes the wind power assets in LatAm?
The portion of that, I think EUR 30-some million is incorporated there.
How much, sorry?
EUR 30 million, EUR 35 million, EUR 36 million is the wind asset.
Okay. Thank you.
Thank you. Ladies and gentlemen, just a reminder, in order to ask a question, please press zero one on your telephone keypad. Thank you. Ladies and gentlemen, there are no further questions. Dear speakers, back to you.
Okay. If there are no further questions, thank you very much for attending. I guess you know we're always available. If you have any consideration on the numbers after looking at them thoroughly, you can call us, and we are at your disposal. Again, being that it's very hot, and those of you who are in this neighborhood, welcome the new holidays. Have a happy summer. Thank you very much.