Good morning. I'm Manuel Manrique, Chairman and CEO of Sacyr. Joining me today at this presentation, as usual, is Mr. Carlos Mijangos, the company's CFO. Thank you very much, dear analysts, media outlet representatives, and investors for attending this presentation of financial results of Sacyr for fiscal year 2022. On this first page, you can see that Sacyr's economic and financial results for fiscal year 2022 were spectacular. Our business performance over the past years, adjusted to a well-defined and well-executed strategy, has resulted in a self-evident context in the light of the results we are presenting today. Sacyr has a very strong concessional enterprise model with high profitability and continuous value creation. Both the company's revenue, standing at EUR 5.2 billion, as well as the company's EBITDA, EUR 1.52 billion, grew strongly, 25% and 63% respectively year-on-year.
EBITDA margin reaches 25.7%. That is 600 basis points more than in the previous year, reaching therefore a record high figure, both in our history and in the industry. The company's EBIT went up by 73%, up to EUR 1.303 billion, with the EBITDA percentage coming from the concession business accounting for 88%. That is 500 basis points more than in December 2021. Such outstanding results have been possible thanks to the huge efforts and good work of our people and collaborators. We are a unique company in the world as to our capacity to commission our greenfield projects regardless of the circumstances.
In 2022, we met all of our goals of commissioning some of our concessional assets considered to be the most relevant ones, such as Route 78, the Américo Vespucio Oriente motorway, and the El Tepual Airport in Chile, as well as the Mar I and Rumichaca-Pasto Highway in Colombia, and the A3 highway in Italy. Furthermore, over the past days, we were awarded the final work completion certificate of the Pedemontana Veneta project in Italy. This highway will be open to traffic shortly after the facilities are tested, and this is work in progress. Based on all these production assets, we confirm that our concession portfolio is already worth more than EUR 3 billion, and that we continue creating value day after day. Another very relevant commitment that we fulfilled last year has to do with reaching EUR 200 million distributed by our concessions.
This is a very significant figure in terms of our future sustainability. 75% of EUR 1.5 billion that we invested in concession projects are already delivering the relevant cash flows in some projects underway. We continue delivering on our growth targets, and we have already been awarded three new major projects. We invested more than EUR 20 million compared to what we had planned in 2022, some price revision payments that are already consolidated were carried forward to 2023. We are back to the IBEX 35 stock exchange index, thanks to the company's reorientation towards the concessional model and the fact that we have exited Repsol, as you very well know. Sustainability viewpoint. That is internationally recognized for that.
As you can see, revenue went up by 25% and EBITDA 63%. EBITDA, in the case of concessions, accounts for EUR 8,738 million. We are now reporting our best backlog figures in our history, reaching EUR 55 billion approximately, therefore growing 19%. Virtually all of our targets have been outperformed. The completion of our net recourse debt reduction objective will enable us to start designing a new strategic plan for our strategy and all of the actions that we are carrying out in different spheres. As usual, I would like to give the floor to Mr. Carlos Mijangos, who will throw more color the group's financial results, and he will talk about the results delivered by each of the business. Chairman?
Now we are going to talk about the company's operating performance.
As you can see, as for contribution by activity, you can see that from a revenue perspective, engineering infrastructure accounts for 50%, concessions 33%, services delivers 6% comes from engineering, 8% comes from services from an EBITDA perspective. If we take into account EBITDA from concessional assets from all three business divisions, we are talking about EUR 1.323 billion. That is to say 88% over the total of this, 6% comes from the services division. If we now take a look at each contribution, concessions accounted for more than EUR 2 billion, engineering EUR 3 billion. All in all, we are talking about EUR 5.852 billion, therefore more than 25%, say 63% increase year-on-year.
As for the main awards, you can see on the map that there are two key projects, 1 in the U.K., another 1 in Portugal, and many construction projects for both urban developments as well as rail, and motorway construction projects, and some services projects as well. In Latin America, we were awarded 3 projects, 2 in Colombia, 1 in Chile, as well as different projects in Peru and Chile, respectively, for engineering and service projects. 1 hospital in Canada. That's another example. As you can see, we are gaining market share in English-speaking countries increasingly more. If we take into account net debt evolution, net debt has gone up to almost EUR 1.5 billion, but this is concerned with related projects. We are talking about net debt coming down by EUR 135 million.
If we take into account EUR 6 billion, we have been able to generate EUR 738 million in terms of cash flows. We have paid EUR 500 million in finance costs. We have invested EUR 1.6 billion this year. We should highlight that in, as for the A30 project, we invested EUR 500 million at the very beginning because that was a project that entailed the payment of some royalties at the beginning. The Repsol sale accounted for EUR 73 million in inflows. There were others. We reached EUR 7.490 billion. As for the net recourse debt, it has come down by EUR 135 million, standing from EUR 681 million, finishing at EUR 546 million.
Well, we have reached this goal because EUR 242 have come from some actions and EUR 50 million that were recovered in working capital together with concession distribution of EUR 220, that over the past quarter was EUR 104. EUR 57 million and an investment of EUR 200. Therefore, we're talking about EUR 119 equity and concessions and EUR 30 in machineries and engineering service-related activities. As for dividend distribution, concerning shareholders, I did not yet describe dividend distribution. We obtained EUR 83 from the financing of Pedemontana, therefore reaching EUR 542 all in all. If we now take a look at the performance of concessions specifically, you can see the revenue has gone up by 40%, but mainly operating revenues went up by 54%.
In fact, concessions accounted for 61%, and the water activity stood at 21%. As for the EBITDA, it was up 74%, whereas margins went also beyond 70% for concessions and infrastructure and in excess of 20% for the water activity. Thanks to the great operational performance of most of our assets, the Tepual project, for example, the commissioning of different tranches of the Colombia and Paraguay motorway projects. These are projects that go from east to west, and then all this revenue is tied to inflation, which is very important and somehow accounts for such a spectacular growth. In terms of water, thanks to the good progress made of our contracts and the finalization of some projects in Chile, we see that the results have also gone up quite markedly.
We have mentioned already that we have almost invested 1.5 billion EUR in equity. 75% corresponds to projects already in progress, leading to a distribution in the amount of 201 million EUR from concession assets. These are the main milestones in the concessions area. 3 new contracts, the completion of 6 projects, plus the completion of the works in Pedemontana. We always say that 2022 was a critical year in order to finalize several projects that had been under construction for 4 or 5 years. We have other refinancing milestones such as the A30 projects, the refinancing of the Rumichaca-Pasto project, the financing of Pedemontana dividends, the Windplant project for 144 million euros, dollars, among other milestones. Here we see some of the main awardings.
We are talking about EUR 350 million investments in the Velindre Hospital. These are more than 30,000 square meters. This is an oncological hospital that provides cutting-edge technology in order to carry out its activity. It's located in Wales, and this is one of our target English-speaking markets. We have the Buenaventura-Buga corridor. This is a part of a Colombian project. There, the investment amounts to EUR 100 million, EUR 3 point billion in EBITDA, 27 years in concession, with EUR 1.2 billion in terms of distribution. We have the Canal del Dique. This is another project accounting for EUR 1.2 billion in investments, EUR 700 million in EBITDA, a 15-year concession, and EUR 1.5 billion-Million people being benefited from the project.
We were trying to take actions in order to prevent floods in the area, creating all the necessary infrastructure so that the quality of life of people in the area can be enhanced. Okay, this is a breakdown of the different projects we embarked upon over the year. You can see that there are three contracts already in place and in progress in Colombia, Puerta de Hierro, in the central northern part of the country, Mar 1 , and the Rumichaca-Pasto project in southern Colombia, right on the border with Ecuador. The Pamplona-Cúcuta Highway that has been completed by 82% in the northern center of the country. As for Chile, we have opened the Route 78 and the Vespucio Oriente project. As for Italy, we have already opened the A3 highway to traffic.
This is in southern Naples, and it's the highway between Naples and Salerno. We have completed the Pedemontana project, and we have other projects that are well advanced. For example, the Ferrocarril Central and another 120 kilometer road that covers about 80% of the total project. If we take a look at the contribution of each country in terms of EBITDA, and you know that the figures in Italy are reported under construction for administrative reasons. More than EUR 1.3 billion in EBITDA has been obtained. The main contributors being Italy, Colombia, Chile, and Spain. All in all, we have 69 assets within the portfolio of our concessions division. If we now take a look at engineering infrastructure, this division also performed on very sound grounds.
Despite of some developments over the year, revenues went up by 19%. Awards of new contracts in different countries should be highlighted. These are considered to be reference market projects. EBITDA went up by 52% with a special contribution by the two Italian concession projects. If we eliminate the effect of such concessions, EBITDA was EUR 90 million, therefore the margin was 3.7%. As you know, commodity prices went up over the year, despite that, we were able to deliver very sound results. We were able to recover EUR 42 million in terms of prices in some countries such as Chile, Spain and other reference countries and some others that will be collected during 2023. As for the main milestones, we can say that this division had plenty to point out.
Apart from the Pedemontana project, we completed the Agrigento Mayan project in hospital, also we completed some construction projects concerning concession that I have already mentioned. Also, two logistic warehouses were completed for Amazon in Badajoz and Girona respectively. Then the Edinburgh Tramway last section was completed and will be opened shortly. More than 50% of the construction and engineering portfolio corresponds to the concession division. As for the main awards, we should highlight the construction projects of some awards in Peru. The extension of the airport accounted for EUR 350 million. Also another project in Chile for EUR 456 million. Another project in Peru, the Lima Airport Partners. All in all, we're talking about EUR 400 million of projects there.
We also have another project in Belfast called the Weavers Cross Belfast, just to give you a few examples. Finally, taking into account the services business area, it also went up quite considerably in terms of revenue growth by 8%. EBITDA went up by 9%, going beyond 10% in terms of margin. The backlog also arose by 12%. We continue to be awarded very significant projects, and we have already commissioned different projects that we had been awarded at the end of 2021 and in the first half of 2022, like in the cities of Barcelona and Madrid. From a comparative perspective, in 2021, we had a positive effect due to some additional contracts that were awarded due to the Filomena storm and some other energy projects. As a result, margins went up quite significantly.
As for our way of working, sustainability is at the very core of all of the services that we render through this division. As for the main awards, we should highlight, one project in Madrid for EUR 211 million in Toledo. There was another important project, the containerization, collection, and transport of waste in Madrid in the amount of EUR 211 million. The Terminal One, Two, and Three, airport terminals for EUR 33.6 million. Without any further ado, Mr. Chairman, let me hand it over back to you.
We shall be available to answer any questions that you may have.
Good morning, everybody. First, we're going to answer, the questions that we get through the conference call. Next, we are going to address questions posted via chat or through the webcast.
Please remember that you can press star one if you're using a telephone to ask a question. The first question is by Luis Prieto. Please Luis, you have the floor.
Good afternoon, everybody. Thank you very much for taking my question. Actually, I have two questions. The first question is: What's the timing of the divestment plan that you have in terms of the concessional assets? Do you think that the other transactions might be enough in order to deliver on your net recourse debt reduction target? In that case, divestment might not be necessary. The other question is the following: the company's making steady progress and therefore, maybe you can be more flexible in terms of capital increase, dividend distribution, et cetera. When can we expect the next update to take place? Thank you.
As for the first question, we'll have to wait and see what happens with divestments. We should first carry out the two divestments we mentioned. We have the VCM and the facility in place for that, next we will continue with the water area. Of course, we take certain steps as usual. Other steps, of course, will be taken after we complete all the necessary actions regarding what you have just mentioned. After we complete all those divestments we are planning, I mentioned that, but let me repeat. The company will have a new shape.
It will stand on new assumptions, and therefore we are going to prepare a new pluriannual strategic plan, where we shall set out, as in the prior 2021, 2025 plan, we are going to include our new pipelines for the period until 2027, including our dividend distribution or remuneration policy. Thank you.
Next question is by João Safara from Santander. Please ask your question.
Hello, good afternoon, and congratulations for such good results. I have three questions. I understand based on your answer that you're not going to give as much color as to your expectations for 2023. However, I imagine that maybe you can give us some heads-up as to dividend distribution and equity contribution, and specifically, I would like to know, based on the projects underway, what's your equity commitment that is pending? That's question number one on my side.
The second question is the following, just to understand the concept better. In Q4, there was a huge contribution that was virtually the same as the one reported during nine months from the Italian highways. Is this due to any special effect? What should we expect going forward by way of reference? Could you please help us understand this better?
The last question is concerned with something that Carlos mentioned. I didn't understand how much of the construction backlog corresponds to concession projects. Well, as for our 2023 expectations, they are good, but we are just in February as of now. They shall remain just as good. We deliver on our goals, quarter after quarter, year after year, so we are planning to deliver on the same targets this year.
As for dividend, we have to wait and see how this plays out. The board of directors will analyze shareholder remuneration as part of a strategic plan. There will be a general remuneration plan in place. However, the board of directors will ultimately decide which is the most suitable policy we should implement. Carlos, would you like to answer the second question?
Okay, let me supplement the answer. As for yearly investments, we're talking about EUR 150 million in equity, similar to the expected amounts of total contributions or contributions that are already committed. They account for EUR 550 million in the next four to five years. Some of them will be within the next four years. Regarding the Pedemontana Veneta contribution, inflation in Italy was 11%, and Pedemontana is an account receivable.
This is a financial asset. The revaluation of this account receivable during 39 years means that we will have to do the necessary recognition in our accounting records. That's why you see that number in Q4. More than 50% of the engineering backlog corresponds to concession, as I mentioned during the presentation.
Thank you very much.
The next question is by Fernando Lafuente from Alantra. Please, Fernando, go ahead. Good afternoon.
I have 2 questions. The first question is concerned with growth options. I'm aware that you are about to launch a new strategic plan at some point in 2023. I understand that your target was to change the invested equity balance. Are locating about one third in Latin America and another share in other countries. Are you planning to increase the weight of regions outside of Latin America?
In that context, I would like to know your opinion about the current competitive context due to interest rate rises, perhaps some financial investors are no longer very strong. What do you think about the current context in terms of concessions going forward? Now the construction margin. This has been a tough year that you were able to work out quite well. What about your outlook for the next year, taking into account that more than 50% of the backlog is in the construction area? Could you give us some color as to your activity? Do you think the revenue might go up in 2023 compared to 2022? I'm talking about revenue coming from construction related projects, specifically regardless of the accounting adjustments coming from Italy that you mentioned before.
Okay. Regarding growth options concerning contracts.
In 2025, our target was to near one-third of English-speaking countries, one-third Europe and one-third Latin America. We continue to uphold that target. We are now carrying out the Velindre Cancer Centre project. As you have seen, we are already in the Americas, specifically in the United States and Canada, where we are finalizing some other processes underway. That will remain a target under our next strategic plan. For the competitive context, we believe that does not vary that much compared to the previous one. In terms of construction margins, we expect them to be even better. In our strategic plan, we will certainly emphasize that results are more important than volume or size.
We should bear in mind that this year we have completed seven concessional projects, so we should not expect a much greater revenue increase in terms of project, but yes, in terms of margins.
Thank you.
There are no further questions in the conference call. We are going to move on with questions coming in through the webcast. Alvaro Navarro from Bestinver Securities has three questions. First, he would like to get some details as to the impact of inflation on the growth reported today. Second, he's asking about Colombia. Since the inflation rate has been secured, he would like to know whether that might have an impact on any potential increases in 2023. Thirdly, he would like to get an update about the current status or the potential risks coming from the Panama Canal project.
Okay, in answering question number one, the impact of the inflation rate and the revaluation of financial assets accounted for EUR 220 million due to high inflation, mainly in Chile, Colombia and Italy, respectively. Regarding question number two, in Colombia, the public administration will undertake the differential of not updating or reviewing rates. They are trying not to pass on the impact of inflation to users, but we are going to collect the same from a contractual perspective. There are no differences. As for the Panama Canal proceedings, they are evolving as scheduled. We believe that in the first half of 2023, a final decision will be handed down. We are not worried about this.
After our performance as a company, the very worst case scenario would have an effect of EUR 40 million in terms of cash. We are talking about a 3 or 4-year term, so we're not really worried about how this will play out. Of course, everything is actually on our side in Panama. Of course, the upside may be very significant.
Okay, the next question is by Philippe Blater. I believe that some questions have already been answered. What about dividends coming from concessions this year and equity? Carlos has already answered that question. Okay. After reaching your goal of reducing your net recourse debt down to 0, are you expecting to change your dividend distribution policy? Could you please give us some visibility about this policy?
He also asked for an update on the Panama Canal proceedings. I believe that that question has already been answered. As for concessions that are tied to inflation rate rises, are you going to review all of them on a monthly basis, on a quarterly basis or annually? Finally, with regard to growth potential, there are some relevant projects in the pipeline for 2023. Are there any?
That's the question. I believe that the Chairman has already answered that we are finalizing some tender processes. Well, I think that we have basically addressed all questions. Let me summarize them all.
As for the company's dividend distribution policy, we said that once we complete the three most important processes, we are going to put in place a new strategic program under which we will have a new dividend distribution policy that it will be about 5%. Up until now, it was 4.8%. We are going to move along these lines. Every year, the board of directors decides what's the most suitable policy to the best interest of the company. As regards the concessions pipeline, it's quite broad, and we are about to finalize several tender processes, about 3 or 4, to be specific. We expect that about 2, 3 projects will be awarded in 2023. As for the Consumer Price Index, in fact, Felipe, you always index your CPI according to the previous base.
However, there are some contracts where this is done in January, September, but actually, you always use an annual basis, and you take into account the accumulated inflation over the period. Now let me
give the floor back to the Chairman. Well, if there are no additional questions, I would like to finish off by saying that the success of such economic results as the ones we have presented today and the sustainable balance sheet of the company is the result of all those who work with great professionalism, effort, and full engagement with Sacyr that enables us to be a better company every day.
Finally, thank you very much for having joined us today, and thank you for your interest, and we look forward to meeting you again at the next presentation, where we will be presenting the results for Q1 2023.
Thank you very much. Have a very nice day.