Indra has two souls. Historically, he is known for consulting and technological projects, including the management of the count in elections in Spain and in many other countries. However, it has two large business areas. The first, called Minsait, brings together the entire technology, consulting, cybersecurity and electoral processes business. This division generates two thirds of the income, but one third of the profit. And the second area is transportation and defense, which has always remained in the shadows, but which has far-reaching projects.
At this time, the defense and security portfolio amounts to 2,667 million, when the company’s global portfolio has reached a record figure of 6,044 million as of June 30, 2022. The contracting of the MK1 radars of the Eurofighter project for Germany and Spain, as well as the contract for the modernization of the Tigre MKIII helicopters in Spain. She was also in charge of the anti-drone radars that were used at the NATO summit so celebrated in Madrid to protect the leaders who arrived from all over the world. In the defense awards, the face is seen with companies such as the French Thales or Airbus, the Italian Leonardo or the German Hensoldt or Rheinmetall, among others. Within the new European defense fund, 19 projects have been awarded totaling 700 million investment, which is equivalent to 60% of the 1,200 million committed by the European Union. And one of its strengths is the specialization in cyber defense with the application of artificial intelligence.
Actually, Indra is a multinational. The numbers speak for themselves. It has a workforce of 54,933 people, 10.6% more compared to the first half of 2021. Of that figure, 54% (29,443) work in Spain, 36% (19,911) in America, 6% (3,560) in other European countries and 4% (2,019) are divided between Asia, the Middle East and Africa. The group is present in 46 countries and has commercial operations in more than 140. In 2021, it obtained a net profit of 143.4 million. Among the objectives for 2022 are reaching revenues of 3,550 million, compared to 3,390 million in 2021.
In the stock market, the multinational suffered a great setback this summer when it dispensed with several independent directors. Its value is slowly recovering. At the annual meeting, on June 23, one of its shareholders, the Amber fund, owned by Joseph Oughourlian, who also chairs Prisa, requested the dismissal of a large part of the independent directors by surprise. This assault on corporate governance rules did not please the market, which generated an institutional crisis that these days is closing. The company hired the human resources firm Korn Ferry to give transparency to the process and hire six independent directors with a technological profile and mostly women to comply with parity standards. Finally, the candidates are Virginia Arce (PwC), Olga San Jacinto (Nazca Capital), Coloma Armero (Uría Menéndez), Axel Arendt (Rolls Royce) and Belén Amatriain (former CEO of Telefónica Spain). Felipe Fernández (former president of Deutsche Telekom Ibérica) has fallen from the proposal, with which a new name is sought. After the approval of the appointments committee and once the board gives the green light to the missing candidate, Indra will have to call an extraordinary meeting to ratify the new board of directors. Juan Moscoso will also be appointed to represent SEPI. It is expected to be held before October 30.
Indra’s objective is to close this bitter chapter, which has even opened an investigation at the CNMV. Indra’s plans include launching a new strategic plan, relaunching the defense division and it could even resume the purchase of ITP Aero, a world leader in the aeronautical engine market. It is a company that the Spanish Government has tried to acquire on two occasions as a strategic fit. Indra’s capitalization is around 1,200 million and that of the Basque group is higher, but Indra has the financial muscle to carry out a large corporate operation. The harmony between the non-executive chairman Marc Murtra and his CEO Ignacio Mataix will also be key.
After the peace in the council, analysts wonder if discrepancies between shareholders may arise. It will be necessary to see in which direction they vote in the meeting. SEPI controls 28%; the Amber fund has 4.5%, but has received the green light from the Government to reach 9.9%; and the Basque group Sapa owns about 8%. Fidelity has more than 10%. And this week the US fund Voleon has emerged a short position of 0.51%. The new council will be made up of 14 people, but it is not ruled out that Amber request a seat to have a voice and a vote. One of Indra’s paradoxes is that the Government appears as a shareholder and client. But that pattern is repeated in companies dedicated to defense and weapons in other countries of the European Union. Hence, Indra is one of the jewels in the Executive’s crown, which plans to raise defense spending to 2% of GDP in 2029.
