EPoC 2010. European powers of construction
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Deloitte acaba de publicar el estudio EPoC 2010 que examina la situación de las principales empresas europeas cotizadas en diciembre 2010 y su posición en el mercado, su internacionalización, ...

Deloitte acaba de publicar el estudio EPoC 2010 que examina la situación de las principales empresas europeas cotizadas en diciembre 2010 y su posición en el mercado, su internacionalización, margen y deuda.

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EPoC 2010. European powers of construction Document Transcript

  • 1. EPoC 2010 European powers of constructionJune 2011
  • 2. EPoC is an annual publication edited byDeloitte and distributed freeDirectorJavier Parada, partner in charge of theInfrastructure Industry, SpainCoordinated byMargarita VelascoAlberto Benito BenitoEdited byCIBSContactInfrastructure Department, Deloitte MadridPlaza Pablo Ruiz Picasso, S/NTorre Picasso 28020 Madrid, SpainPhone + 34 91 514 50 00Fax + 34 91 514 51 80June 2011
  • 3. Contents5 Introduction6 Ranking of listed European construction companies7 Top 50 European Powers of Construction – ranking by sales8 Top 20 European Powers of Construction – ranking by market capitalisation9 Internationalisation and diversification profiling of the TOP 20 EPoC11 Working abroad: Internationalisation of EPoC16 The diversification of European construction companies18 Financing the diversification21 Top 20 listed European companies – Company profiles62 European Construction and Infrastructure Group Contacts
  • 4. Welcome to theeighth edition ofEuropean Powersof Construction
  • 5. IntroductionSix months after the end of the year 2010, EPoC 2010examines the status of the major European listedconstruction companies at December 2010 and itsposition on key industry issues such as the level ofdiversification, level of internationalisation, constructionactivity margin or indebtedness levels.We are pleased to present European powers of While discussing the internationalisation of theconstruction (EPoC) 2010, our eighth annual publication European construction companies and how theirwhich identifies the main European construction successful attempts for diversification have positivelycompanies and discusses the situation of the impacted their revenues and margins, we cannot forgetconstruction sector. that usually diversification and international expansion come at a cost. Therefore, a discussion on indebtedness2009 and 2010 have been difficult years for the levels and diversification of both activities and locationsconstruction sector, following the 2008 credit crunch is also included in our analysis.and the subsequent economic recession. The economicdownturn has been keenly felt across the real estate We maintain a section dedicated to profiles, which insector of most European countries and it has also the 2010 EPoC edition are focused on the top 20 listedaffected construction of public infrastructure. European construction companies. We present key data regarding ownership structure, main activities andHowever, this sector is very diverse and has international presence, goals and strategic objectives.demonstrated its innovation over the years. Most of the In addition we have included an appendix for eachcompanies that we are analysing had anticipated the company that shows relevant data extracted from theexhaustion of their traditional business models, based company’s financial statements for 2010.on domestic construction either for the Public Sector orfor real estate developers, and were able to successfully We hope that you find the EPoC 2010 analysis of theexpand their business in terms of both geographical construction sector to be of interest, and that thelocations and activities performed. information presented herein helps you to understand and think over the challenges and opportunities of this sector. We welcome your ideas and suggestions about any of the topics covered. EPoC 2010 European powers of construction 5
  • 6. Ranking of listed Europeanconstruction companies The ranking of the Top 50 EPoC 2010 by sales volume France dominates the Top 50 in terms of total sales, is headed by Vinci as in previous years. In addition, with also three companies listed within the top 5. There Bouygues and Hochtief maintain their second and third are no more listed French constructor companies in the place so there are no changes in the top 3 places of the remaining positions of the ranking. EPoC ranking. Spain has the largest presence in the top 20, placing six companies between the fourth and the seventeenth positions. Only one other Spanish company is includedFrench, Spanish and British in the top 50. With the consolidation of Hochtief in 2011, Spanish group ACS will achieve proforma salescompanies lead the EPoC of €35,539 million stepping to the number 1 proforma position in the EPoC ranking by revenue.ranking by volume of sales but The United Kingdom has the largest number ofwith certain differences in their companies in the top 50, with 13 companies, but their relative size is smaller in comparison to Spanishrelative size or French companies. The UK has a number of housebuilders, whose dynamics are different to other construction companies of the ranking, more focused on civil engineering. Number of Country Total Sales Average Sales Companies France 78,154 3 26,051 Spain 56,508 7 8,073 United Kingdom 38,284 13 2,945 Germany 29,298 3 9,766 Sweden 22,959 4 5,740 Austria 15,603 2 7,802 Netherlands 11,650 3 3,883 Finland 5,680 2 2,840 Italy 5,060 3 1,687 Portugal 4,279 3 1,426 Turkey 3,555 1 3,555 Greece 2,544 2 1,272 Norway 1,972 1 1,972 Switzerland 1,731 1 1,731 Denmark 1,114 1 1,114 Poland 1,048 1 1,048 Total 279,439 50 5,5896
  • 7. Top 50 European Powers ofConstruction – ranking by sales Market EBITDA Ranking Company Country FY END Sales (€ m) EBIT (€ m) Capitalisation (€ m) (€ m) (a) 1 Vinci SA France Dec 10 33,376 5,052 3,429 23,694 2 Bouygues SA France Dec 10 31,225 3,701 1,760 12,122 3 Hochtief AG Germany Dec 10 20,159 1,643 715 4,451 4 ACS, Actividades de Construcción y Servicios, SA Spain Dec 10 15,380 1,500 1,077 10,773 5 Eiffage SA France Dec 10 13,553 1,852 1,041 3,806 6 Skanska AB Sweden Dec 10 12,815 735 572 6,040 7 Strabag SE Austria Dec 10 12,777 735 299 2,516 8 Balfour Beatty Plc United Kingdom Dec 10 12,288 422 240 2,637 9 Ferrovial SA Spain Dec 10 12,169 2,514 1,514 6,951 10 Fomento de Construcciones y Contratas SA (FCC) Spain Dec 10 12,114 1,435 774 2,931 11 Bilfinger Berger SE Germany Dec 10 8,007 511 343 2,852 12 Koninklijke Bam Groep NV Netherlands Dec 10 7,611 206 (30) 1,261 13 Acciona SA Spain Dec 10 6,263 1,211 527 4,667 14 Carillion PLC United Kingdom Dec 10 5,991 265 227 1,819 15 NCC AB Sweden Dec 10 5,182 236 236 1,965 16 Obrascon Huarte Lain SA (OHL) Spain Dec 10 4,910 1,005 700 2,763 17 Sacyr Vallehermoso SA Spain Dec 10 4,820 572 394 3,530 18 Peab AB Sweden Dec 10 4,004 234 158 1,791 19 Yit Oyj Finland Dec 10 3,788 256 221 2,500 20 Enka Insaat Ve Sanayi AS Turkey Dec 10 3,555 584 505 7,122 21 Taylor Wimpey Plc United Kingdom Dec 10 3,034 220 215 1,396 22 Porr Group Austria Dec 10 2,826 103 49 280 23 Heijmans NV Netherlands Dec 10 2,680 83 48 402 24 Barratt Developments Plc United Kingdom Jun 10 2,450 71 61 339 25 Morgan Sindall Plc United Kingdom Dec 10 2,386 89 64 523 26 Kier Group Plc United Kingdom Jun 10 2,315 107 102 1,186 27 Interserve Plc United Kingdom Dec 10 2,182 123 87 393 28 Impregilo Spa Italy Dec 10 2,062 282 224 896 29 Astaldi Spa Italy Dec 10 2,045 230 174 527 30 Mota Engil Sgps SA Portugal Dec 10 2,005 237 132 377 31 Veidekke Asa Norway Dec 10 1,972 98 53 797 32 Lemminkainen Oyj Finland Dec 10 1,892 65 29 491 33 Persimmon Plc United Kingdom Dec 10 1,829 150 145 1,519 34 Ellaktor SA Greece Dec 10 1,753 279 167 618 35 Implenia AG Switzerland Dec 10 1,731 82 53 415 36 Galliford Try Plc United Kingdom Jun 10 1,390 37 33 319 37 Teixeira Duarte Engenharia e Construçoes SA Portugal Dec 10 1,380 150 84 272 38 Ballast Nedam NV Netherlands Dec 10 1,359 45 18 163 39 Keller Group Plc United Kingdom Dec 10 1,246 99 50 451 40 Costain Group Plc United Kingdom Dec 10 1,191 37 34 185 41 Bauer Aktiengesellschaft Germany Dec 10 1,132 166 88 613 42 Mt Højgaard Denmark Dec 10 1,114 30 13 178 43 Interior Services Group Plc United Kingdom Jun 10 1,106 16 13 64 44 Polimex Mostostal SA Poland Dec 10 1,048 63 40 407 45 JM AB Sweden Dec 10 958 95 95 1,303 46 Trevi Group Italy Dec 10 953 137 84 554 47 Grupo Soares Da Costa SGPS Sa Portugal Dec 10 894 88 50 88 48 Bellway Plc United Kingdom Jul 10 876 60 58 923 49 Grupo Empresarial San Jose SA Spain Dec 10 852 68 25 350 50 J&P-Avax SA Greece Dec 10 791 80 80 96(a) Figures at May 2011 EPoC 2010 European powers of construction 7
  • 8. Top 20 European Powers ofConstruction – ranking bymarket capitalisation The ranking of the Top 20 EPoC 2010 by marketVinci, Bouygues and ACS head capitalisation is headed by Vinci and Bouygues, which are also the first companies in our ranking by sales.the ranking of the Top 20 EPoC Among the rest of the companies, ACS, Enka, Ferrovial, Acciona, OHL, Sacyr and Yit climb places in comparison2010 by market capitalisation with the ranking by sales. Particularly significant is the case of Enka that reaches the fourth place helped by its diversification and the buoyant markets where the Turkish group operates. Market Sales EBITDA (€ EBIT (€ Ranking COMPANY Country Capitalisation (€ m) (a) m) (a) m) (a) (€ m) (b) 1 Vinci SA France 33,376 5,052 3,429 23,694 2 Bouygues SA France 31,225 3,701 1,760 12,122 3 ACS, Actividades de Construcción y Servicios, SA Spain 15,380 1,500 1,077 10,773 4 Enka Insaat Ve Sanayi AS Turkey 3,555 584 505 7,122 5 Ferrovial SA Spain 12,169 2,514 1,514 6,951 6 Skanska AB Sweden 12,815 735 572 6,040 7 Acciona SA Spain 6,263 1,211 527 4,667 8 Hochtief AG Germany 20,159 1,643 715 4,451 9 Eiffage SA France 13,553 1,852 1,041 3,806 10 Sacyr Vallehermoso SA Spain 4,820 572 394 3,530 11 Fomento de Construcciones y Contratas SA (FCC) Spain 12,114 1,435 774 2,931 12 Bilfinger Berger SE Germany 8,007 511 343 2,852 13 Obrascon Huarte Lain SA (OHL) Spain 4,910 1,005 700 2,763 14 Balfour Beatty PLC United Kingdom 12,288 422 240 2,637 15 Strabag SE Austria 12,777 735 299 2,516 16 Yit Oyj Finland 3,788 256 221 2,500 17 NCC AB Sweden 5,182 236 236 1,965 18 Carillion PLC United Kingdom 5,991 265 227 1,819 19 Peab AB Sweden 4,004 234 158 1,791 20 Persimmon PLC United Kingdom 1,829 150 145 1,519(a) Figures at December 2010(b) Figures at May 20118
  • 9. Internationalisation anddiversification profiling ofthe top 20 EPoCA quick glance at the top 20 listed European On a smaller scale, Peab obtains 86% of its revenue inconstruction companies, taking into account the Sweden and is also focused in the construction businessinternationalisation level and the diversification of their from where 86% of its revenues are derived.activities, will show that EPoC could be classified intofour main categories. International construction groups The second group of companies is comprised of“Domestic” construction groups companies whose primary source of sales is theThis group comprises companies whose primary construction business outside their country of origin.source of revenue is construction within local markets.International sales account for less than 40% of total Hochtief is the most international European constructionsales made. group, with 87% of its construction revenue being earned in America and Asia/Oceania.Vinci and Bouygues are without any doubt the first twocompanies of our 2010 ranking taking into account total Contrary to Peab, Swedish companies NCC and Skanskarevenues. The international presence of both groups achieve over 40% of their revenues outside of theiris significant (€12,449 million and €9,719 million of home country. NCC works in Denmark, Finland andtotal revenues, respectively), but they still achieve over the other Baltic countries. Skanska is active in the UK,60% of revenues in France. In a similar way, although Eastern Europe and the Americas.in recent years both French giants have diversified theiractivity portfolio, their construction revenue represents84% and 74% of their total revenue figure, respectively. 100% 90% 80% Non-construction revenues / total revenues % Enka 70% ACS 60% "Domestic" International Ferrovial Conglomerates Conglomerates Acciona 50% Eiffage FCC Sacyr Bilfinger Carillion 40% OHL Balfour Beatty 30% Bouygues 20% Peab International Construction Vinci Groups "Domestic" 10% Skanska Construction Hochtief Bam Groups NCC Yit Strabag 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% International revenues / total revenues % EPoC 2010 European powers of construction 9
  • 10. Carillion’s diversification has been oriented to provideNine of our EPoC 2010 support services and Eiffage has achieved a significant presence in energy and concession sectors. Bothcompanies obtain at least companies generate over 40% of their revenues through non-construction related activities, although given50% of their revenues from the location of such activities, they must be primarily considered as domestic.non-construction activities. Enka has reached a significant position in Russia,Eleven of them generate at least although the Turkish market still represents over 70% of total revenues. In terms of activity, Enka is the most40% abroad diversified listed European construction group. Its focus on the energy sector and trade and manufacturing causes the traditional construction business to represent less than 25% of its total revenue in 2010. Finally, the limited size of their local markets encourage International Conglomerates the Finnish company Yit, the Austrian company Strabag Finally, there is a group of companies that are highly and the Dutch company Bam Groep to carry on their diversified and have significant international sales. activities in other European countries. Ferrovial and OHL achieve almost 70% of their revenues “Domestic” conglomerates outside of Spain, with significant diversification. A third group of companies is comprised of companies Ferrovial derives more than 60% of its revenue from that have diversified their business portfolio to non-construction activities, mainly environmental non-construction activities but conduct most of their services, airports and infrastructure projects, in the business in domestic markets. UK, Poland and North America. OHL has significant construction activities in the USA, Algeria and the Spainsh companies ACS, Acciona and Sacyr have Middle East and is also especially strong in Mexico and extended their activities to foreign markets. However, Brazil where its concession business is very significant. in 2010 almost 70% of their activity was still performed in Spain. In addition to their international expansion, FCC and Balfour Beatty obtain approximately 50% of ACS, Acciona and Sacyr have diversified their business their revenues in foreign markets and non-construction portfolios. They provide environmental services such activities. FCC’s diversification has been oriented mainly as waste disposal or water treatment plants, energy- to environmental services in Austria, Germany,the related services, transportation or infrastructure projects. UK and Eastern Europe. Balfour Beatty has a strong Consequently construction revenue does not exceed presence in Asia and North America and has diversified 60% of total revenues. With the consolidation of its construction activity, providing professional services Hochtief in 2011, ACS radically changes its profile with and support services. proforma international sales of approximately 66%. Hochtief consolidation also drives ACS to the number 1 Bilfinger is present in the five continents, obtaining proforma position in the EPoC ranking by sales. approximately 58% of its revenues in foreign markets. The German group has diversified its activities to include industrial services and power services that represent almost 50% of the group revenues in 2010.10
  • 11. Working Abroad:Internationalisation of EPoCThe limited size of the Western European market, its In this context, the major European construction groupsevolution over the last years, as well as the experience have looked abroad for growth opportunities and, as ofgained by the European companies in the construction today, our 2010 EPoC are present in the five continentssector and in other sectors where they have focused obtaining about 49% of their revenues outside of theirtheir efforts in recent years, have meant that the national borders. This trend has strengthened in recentinternationalisation of their business has become an years, and is expected to continue in the near future.attractive model that most EPoC have decided to This diversification is focused on civil engineering andpursue. other activities, excluding house building, which, due to its very nature, is difficult to export.After several years of low or no growth, investmentin the construction sector within the European Union The distribution of EPoC 2010 sales by geographicaldecreased 3.6% in 2010, with expected 2011 growth of area is as follows:only 0.2%. Millions of Euros International Total Domestic Rest of Asia / Not Company Country Sales/Total America Africa Sales Sales Europe Oceania Specified Sales Hochtief AG Germany 91.86% 20,159 1,642 977 6,891 10,642 7 - Strabag SE Austria 85.07% 12,777 1,907 10,067 246 421 136 - Skanska AB Sweden 78.00% 12,815 2,435 5,238 5,142 - - - OHL Spain 69.74% 4,910 1,496 476 2,444 172 271 51 Ferrovial SA Spain 69.06% 12,169 3,765 6,513 1,610 - - 281 Yit Oyj Finland 61.88% 3,788 1,444 2,327 - - - 17 Bilfinger Berger SE Germany 58.30% 8,007 3,358 3,030 591 509 635 (117) Bam Groep NV Netherlands 55.38% 7,611 3,397 3,878 - - - 336 Balfour Beatty PLC United Kingdom 52.64% 12,288 5,820 - 3,582 - - 2,886 NCC AB Sweden 46.32% 5,182 2,782 2,400 - - - - FCC Spain 46.00% 12,114 6,541 4,792 279 - - 502 Vinci SA France 37.30% 33,376 20,927 8,543 1,297 911 1,698 - ACS Spain 31.81% 15,380 10,488 978 2,967 - - 947 Bouygues SA France 31.13% 31,225 21,506 4,277 2,446 1,643 1,351 2 Sacyr Spain 31,00% 4,820 3,326 847 331 30 164 122 Acciona SA Spain 30.80% 6,263 4,334 987 - - - 942 Enka Turkey 28.50% 3,555 2,543 964 - 48 - - Carillion PLC United Kingdom 25.10% 5,991 4,476 - 826 586 - 103 Eiffage SA France 14.88% 13,553 11,536 1,917 - - 100 - Peab AB Sweden 14.21% 4,004 3,435 569 - - - - 49.05% 229,987 117,158 58,781 28,652 14,962 4,362 6,072 EPoC 2010 European powers of construction 11
  • 12. The Americas - sales (millions of Euros) Balfour Beatty’s international sales are obtained mainly in the USA. Construction sales and professional services 8,000 sales were approximately €2,500 million and €1,050 7,000 million, respectively. The acquisition of Halsall in 2010, with a workforce over 300 people, opens the doors of 6,000 the Canadian market to the Group. 5,000 4,000 ACS is present in basically all the countries of the 3,000 American continent. Nonetheless, Mexico and the United States are the two countries that show the 2,000 Group’s highest sales (approximately €1,000 million 1,000 each). In the last three years, ACS has acquired the 0 American groups Schiavone, Pulice and John Picone. Hochtief AG Skanska AB Balfour Beatty PLC ACS Bouygues SA OHL Ferrovial SA Vinci SA Carillion PLC Bilfinger Berger SE Bouygues derives 7% of its total sales in the USA and Canada, amounting to €2,301 million in 2010. Most of these sales were obtained through the world’s leading road builder Colas. OHL is the sixth EPoC group with highest revenue in America and is certainly a leader in the Central/South America area. Mexico and Brazil report more than €900 The Americas million revenues each, in the International Construction Hochtief has revenue of nearly €6,900 million in the and Concession Infrastructures divisions. Americas, mainly the USA and Canada. Through its subsidiary Turner, Hochtief is the number one general American sales of Ferrovial are mainly obtained in the builder in the USA, being present in sub-segments such USA and Canada, where it obtained revenues over as healthcare, education or office properties. It also €1,400 million in 2010. The Canadian highway 407 ranks first in the green building segment. Flatiron is their ETR in Toronto had revenues of €457 million, with an brand to participate in complex infrastructure projects, EBITDA over sales of approximately 80%. This subsidiary such as bridges and roads. In 2010, the Group acquired has been accounted for using the equity method since a heavy construction contractor, E.E. Cruz, which the last quarter of 2010. operates in the New York metropolitan area. Vinci derived revenues of €944 million in 2010 from Skanska reached sales of almost €4,500 million in North the USA and Canada. More than half of this figure was America and more than €500 million in South America. obtained by Eurovia. In addition, 10% of the American Through its subsidiaries, Skanska USA Building and revenues of the Group were obtained by Vinci Park Skanska USA Civil, the Group has become a leader in the through its 445,000 parking spaces in the USA and New York City area. They have participated in projects 126,000 parking spaces in Canada. such as the PATH commuter train station that connects New Jersey with Lower Manhattan, the reconstruction Two companies generate revenues of between €500 of the World Trade Center area in New York City and the million and €1,000 million. Carillion generates over €800 renovation of the Brooklyn Bridge. million through construction services in Canada and the Caribbean area, while Bilfinger produced sales of almost €600 million in the USA.12
  • 13. Asia/OceaniaHochtief achieved revenues in excess of €10,600 million Asia/Oceania - sales (millions of Euros)in Asia/Oceania in 2010, orchestrating its activities in the 12000region through its majority shareholding in the LeightonGroup. Hochtief holds the leading position in the 10000Australian market and this position is being used to stepup in particularly high-growth countries of Asia—such as 8000India—and in the Gulf States. Hochtief’s main activitiesin the Asia-Pacific area are infrastructure, construction 6000and contract mining. 4000Behind Hochtief, but with significant sales in the Asia- 2000Pacific area, Bouygues obtained revenues of €1,643million in this region during 2010, mainly in the Asian 0 Hochtief AG Bouygues SA Vinci SA Carillion PLC Bilfinger Berger SEcountries of the Pacific Rim. In Oceania it reportedsales of €149 million and the Middle East sales of €127million.Vinci had over €900 million revenue in this area in 2010.The presence in its shareholding structure of Qatari Diar,which controls 5.7% of the Group, certainly contributes Africa - sales (millions of Euros)to its operations in the Middle East and the rest of Asia.Carillion and Bilfinger reached sales between €500 2000million and €600 million in 2010, most of them in theMiddle East. 1500AfricaSogea – Satom is Vinci’s main brand in Africa where the 1000Group obtained revenues of €1,698 million in 2010,across the entire continent. 500Bouygues achieved sales of €1,351 million in Africaduring 2010. These sales were obtained by BouyguesConstruction and Colas in similar proportions in 0 Vinci SA Bouygues SA Bilfinger Berger SEMorocco, South Africa and some other countries,members of the African Financial Community.Bilfinger completes the top three EPoC companiesthat have obtained sales in Africa over €500 million.South Africa is one of its main markets, with Bilfigermaintaining and repairing about 70% of the country’sinstalled power generation capacity. EPoC 2010 European powers of construction 13
  • 14. Geographic diversificationof EPoC 2010 1 1 CanadaAccionaACSBalfour B.BouyguesBilfingerCarillionFCC 6Ferrovial Chile, Argentina, 10Hochtief UruguayOHL The UK 2Vinci Acciona ACS ACS Balfour B. Balfour B. 2 Bilfinger FCC Ferrovial Bouygues The USA Hochtief Carillion 3 Acciona OHL Eiffage ACSA Sacyr FCC Balfour B. Skanska Ferrovial 4 Bilfinguer Vinci Hochtief Bouygues Skanska FCC Vinci 7 Ferrovial Hochtief Paraguay, Bolivia 14 OHL 5 ACS 11 Eastern Europe Skanska Vinci Ferrovial Iceland, Norway, Acciona Sweden, Denmark ACS 3 8 Balfour B. 8 Balfour B. BAM Mexico Brazil Bilfinger Bilfinger NCC 7 Acciona BouyguesAcciona Peab EiffageACS ACS Skanska Balfour B. EnkaBouygues Vinci FCCFCC FCC YIT Ferrovial Ferrovial 6Ferrovial HochtiefOHL OHL Sacyr 12 OHLSacyr SkanskaVinci Skanska Switzerland Vinci Strabag Vinci Balfour B 4 YIT 9 Bilfinger Ferrovial Caribbean Area Eurozone Strabag 15 ACS Vinci Acciona Azerbaijan, Kazakhstan, Balfour B. ACS Tajikistan, Turkmenistan, Bouygues Balfour B. 13 Uzbekistan, Ukraine 17 19 Carillion BAM Enka Balkan Area Bouygues Bilfinger Libya, Egypt Iran, Irak FCC Enka Bouygues Ferrovial Balfour B. Ferrovial ACS ACS Carillion Sacyr Bilfinger OHL BAM Bouygues Eiffage Vinci Bouygues Strabag Bouygues Enka Enka Vinci Carillion FCC FCC Enka 20 5 Ferrovial Ferrovial FCC Hochtief Afghanistan, Pakistan Hochtief 16 Ferrovial Colombia, Venezuela, NCC OHL Strabag Ecuador, Peru OHL Turkey Enka Vinci Vinci Peab Vinci Acciona Sacyr Balfour B. ACS Skanska Bilfinger Balfour B. 18 21 Strabag Enka Bouygues Vinci OHL Russia South Korea, Japan FCC YIT Vinci Ferrovial Enka Acciona Hochtief FCC Balfour B. OHL Ferrovial Bouygues Skanska Hochtief Hochtief Vinci NCC Vinci Vinci YIT14
  • 15. 18 11 10 14 12 13 15 22 21 9 16 19 26 20 34 17 25 24 23 33 30 32 29 31 27 27 Australia 22 Acciona 30 China, Mongolia ACS 25 Balfour B. Eastern Africa 28ACS Arabian Peninsula BAMBalfour B. Bilfinger ACSBouygues ACS Bouygues Balfour B.FCC Balfour B. Hochtief BAM BAM 33Ferrovial OHL BouyguesHochtief Bilfinger Sacyr Enka Western AfricaVinci Bouygues Vinci Ferrovial Carillion Sacyr ACS Enka Vinci Balfour B. Hochtief 28 Bilfinguer 23 OHL New Zealand Bouygues South Eastern Asia Vinci 31 Eiffage Balfour B. South Africa, FerrovialBalfour B. Bouygues Vinci 26 MozambiqueBAM HochtiefBouygues Israel, Lebanon, Jordan Vinci ACS 34Hochtief Balfour B.Vinci ACS Bilfinger Maghreb Area 29 Bouygues Bouygues Ferrovial Hochtief Acciona Madagascar24 Sacyr Vinci ACS Vinci Bouygues Balfour B. India Vinci Bouygues 32 FCCAcciona FerrovialACS Angola, Namibia OHLBalfour B. Vinci ACSBouygues BouyguesFerrovial SacyrHochtief VinciVinci EPoC 2010 European powers of construction 15
  • 16. The Diversification of EuropeanConstruction Companies The construction industry has a cyclical profile that is • They have diversified into activities related to long-term significantly more pronounced than that of the economy contractual management. as a whole. This is due primarily to the considerable historical dependence on investment in infrastructure • They are activities that may serve as a source of and on residential and non-residential building, the main contracts for the other business lines (construction, areas of activity of the construction industry. This cyclical maintenance, facilities, concessions). nature, causes many companies significant financial difficulties in times of recession, and is the main reason • They seek stable/predictable cash flows that enable underlying the diversification strategy implemented by high leverage of the investment to be made. a large number of European construction companies in recent years. • The activities are financially complementary to the construction business (high EBITDA margins and stable/ Although at first glance it may seem that the predictable cash flows than enable a high leverage of construction companies have diversified into a investments as opposed to more modest margins but wide range of disparate activities with no common with a large cash generating ability without leverage as denominator, a closer examination shows that these is the case with construction). activities complement the construction business with a full range of services throughout the entire infrastructure The construction industry has historically had relatively cycle. These activities have, either directly or indirectly, low margins due to the high number of companies certain of the following common characteristics: operating in the sector and to the strong competition at a both local and international level. The diversification • They share clients with the construction activity of the European construction companies is focused on (Central or Local Government). activities with higher margins and more stable/predictable cash flows. 100% 90% Non - construction revenues / total revenues % 80% Enka 70% ACS Ferrovial 60% Acciona Bilfinger Eiffage 50% Carillion FCC 40% Balfour Sacyr Beatty OHL 30% Bouygues 20% Vinci Peab Skanska 10% Hochtief BAM Strabag Yit NCC 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% EBIT/ total revenues %16
  • 17. A review of the margins obtained by our EPoC 2010confirms this notion. The first three groups in terms ofprofitability from sales (OHL, Enka and Ferrovial) are also The construction activity ofamongst the top ten groups with the greatest revenuediversification. the major listed EuropeanSimilarly, Acciona, Sacyr, Eiffage, ACS, FCC, Bilfinger, construction companiesCarillion and Balfour Beatty present higher averageprofitability than Yit, NCC, Skanska, Peab, Hochtief, reported margins of betweenStrabag and Bam because they are more diversified. 3% and 5% in most cases inVinci and Bouygues present overall profitability fromsales of 10.3% and 5.6%, respectively, but as can be 2010.observed in the graph below their highest profit marginsare to be found in the non-construction activities. EBIT/ Sales Construction Company Other activities Total activities ENKA 15.3% 13.9% 14.2% YIT OYJ 5.8% N/A 5.8% ACS 5.3% 8.0% 7.0% OHL 4.8% 30.1% 14.3% NCC AB 4.6% N/A 4.6% VINCI SA 4.5% 41.4% 10.3% FERROVIAL SA 4.2% 17.3% 12.4% SKANSKA AB 3.9% 11.9% 4.5% BOUYGUES SA 3.8% 10.7% 5.6% AVERAGE EPoC 2010 3.7% 13.3% 6.5% HOCHTIEF AG 3.8% 0.0% 3.5% ACCIONA SA 3.7% 13.1% 8.4% FCC 3.6% 9.8% 6.4% PEAB AB 3.5% 7.2% 3.9% SACYR 3.5% 14.8% 8.2% CARILLION PLC 3.3% 4.4% 3.8% EIFFAGE SA 3.0% 13.5% 7.7% BALFOUR BEATTY PLC 2.8% 0.5% 2.0% BILFINGER BERGER SE 2.7% 6.2% 4.3% STRABAG SE 2.3% N/A 2.3% BAM GROEP NV 1.8% 0.0% -0.4% EPoC 2010 European powers of construction 17
  • 18. Financing the diversification Construction activity generally does not requireThe diversification process significant levels of investment in property, plant and equipment or intangible assets, and needs low levels ofcarried out by some of the major working capital. These two factors, together with the traditionally low margins reflected in the constructionlisted European construction industry, which would make it impossible to meet high finance costs, mean that groups engaging solelycompanies in recent years has in construction activities have not historically required significant financing to perform their core activities.required obtaining financing However, the business diversification implemented bythat is still reflected in the certain of the large European construction groups in recent years has required significant financing, largelyconsolidated balance sheets of because the financing is focused on businesses with more predictable cash flows and, therefore, a greaterour EPoC 2010. degree of leverage. 100% 90% Non - construction revenues / total revenues % 80% Enka 70% Ferrovial ACS 60% Acciona Bilfinger Eiffage 50% Carillion FCC 40% OHL Sacyr Balfour Beatty 30% Bouygues 20% Vinci Skanska Peab 10% Bam Hochtief Strabag NCC Yit (1,000) (500) 0 500 1,000 3,000 5,000 10,000 15,000 20,000 25,000 Net Debt18
  • 19. On analysing the relationship between the net debt of Net Debt (Millions of Euros)the large listed European construction groups and theirsales diversification levels, four categories emerge, the (1,000) 4,000 9,000 14,000 19,000 24,000detail of which is as follows: Ferrovial SA• Strabag, Skanska, NCC, Yit, Peab, Hochtief and Bam Groep are examples of groups which engage primarily Vinci SA in construction. They have very low debt levels and, on occasion, even present positive net cash positions. Eiffage SA• Bouygues and Vinci engage primarily in construction, Sacyr Vallehermoso SA with very high business volumes and a certain level of diversification that has translated into higher debt. ACS Additionally, on quantifying their absolute values, in view of their size, they are positioned in the high net FCC debt segment. Acciona SA• Balfour Beatty, Carillion, Bilfinger and Enka have managed to diversify their traditional construction OHL business without creating significant leverage. The Bouygues SA sectors on which Balfour Beatty and Carillion have focused (basically support services and professional Bam Groep NV services) do not require significant financing. The high margins of Enka have enabled the Turkish group to Hochtief AG maintain a favourable cash position. Yit Oyj• The Spanish groups Ferrovial, Sacyr, ACS, FCC, Acciona and OHL and the French group Eiffage have made Peab AB a firm commitment to diversifying their business in recent years, especially in the infrastructure concession NCC AB sector. As opposed to the construction companies engaging in the traditional building business, an Bilfinger Berger SE analysis of the level of debt of groups operating in the infrastructure sector must take into consideration Enka the fact that they are very long-term projects with predictable and stable cash flows and that, in general, Carillion Plc the significant debt from these activities does not have recourse to the group since they are based on project Skanska AB finance schemes in which the only guarantee is the asset being financed. Balfour Beatty Plc Strabag SE EPoC 2010 European powers of construction 19
  • 20. Ferrovial is the EPoC 2010 group with the highest net Sacyr’s net debt amounted to €10,995 million at 31 debt. This debt is concentrated in its infrastructure December 2010, of which 45% is to finance its 20% businesses which are also the most profitable segments. ownership interest in Spanish petrochemical company Its airports division had EBITDA of €1,272 million in Repsol. 2010, but also contributed a negative net cash position of €14,529 million to the group’s consolidated balance ACS’s net debt of amounted to €8,003 million at 31 sheet. The motorway division contributed EBITDA of December 2010, related basically to the financing of its €630 million to the group in 2010 and net debt of 20% ownership interest in the energy group Iberdrola €5,026 million. (€4,689 million) and the acquisition of shares of Hochtief (€876 million). The remaining net debt of the Similarly, Vinci’s net debt also arises from the group’s ACS group is related mainly to infrastructure projects. non-construction businesses. Vinci Autoroutes contributed positive cash flows of approximately €3,000 FCC’s net debt (€7,749 million) is related basically to its million to the group, although it also contributed net environmental services division (€4,353 million), cement debt of €13,965 million to the consolidated balance division (€1,288 million) and energy division (€924 sheet, which is in contrast to the positive cash position million). contributed by its Contracting division. Acciona’s net debt amounted to €6,587 million at Eiffage’s Concessions and PPPs division contributed 31 December 2010 and relates basically to its energy net debt of approximately €14,000 million to the division (€5,616 million), which obtained EBITDA of consolidated balance sheet in 2010. EBITDA generated €822 million in 2010. by this segment amounted to €1,361 million in 2010. OHL’s net debt amounted to €4,420 million at 31 December 2010 and is also concentrated mainly in its concession business, which contributed net debt ofThe companies that have €3,822 million.remained focused on the Our analysis is based on the debt as recorded in the 2010 consolidated financial statements of the respectiveconstruction activity have lower EPoC companies. Consequently, the debt figures analysed do not include debt of non controlling interestsdebt than the companies that that are accounted for using the equity method, joint ventures that are not fully consolidated and PFI’s overhave further diversified their which the respective company does not have control (that in some cases may be significant).portfolio20
  • 21. Top 20 listedEuropean companies– Company profiles EPoC 2010 European powers of construction 21
  • 22. Vinci SA Vinci SA was incorporated in 1899 by French engineers Contracting Alexandre Giros and Louis Loucheur and in 2010 it Vinci Energies, Eurovia and Vinci Construction constitute employed 180,000 people in around 100 countries. the Contracting business of Vinci, with 163,000 employees working on 262,000 projects in around 100 Its main shareholders are institutional investors, countries. both in France (23.9%) and outside France (43.5%). The remaining shares are controlled by individual Vinci Energies is a European market leader in energy shareholders (12%), employees (9%), Qatari Diar Real and information systems. With a workforce of 32,000 Estate Investment Company (5.7%) and Financière employees in 21 countries, Vinci Energies generates Pinault (3.8%). Treasury shares represent 2.1% of the more than 30% of its total revenues (€7,102 million) total shares of the Group. outside France. Vinci SA classifies its portfolio into two main segments: Eurovia is a world leader in transport and urban Concessions and Contracting. development infrastructure. While it generates more than 90% of its revenue in Europe (primarily in France, Concessions Germany, the United Kingdom and Central Europe), The Group’s concession business, with a network Eurovia also holds significant positions in the USA (North stretching 4,385 km, represents more than half of Carolina, Florida) and Canada. With revenues of €7,930 France’s motorway network under concession. million and 40,000 employees, Eurovia has developed an integrated range of expertise in transport and urban Vinci Autoroutes is the Group’s motorway operator development infrastructure, industrial production with revenues of €4,259 million, operating profit from (Eurovia manages a network of 430 quarries, 45 binder ordinary activities of €1,923 million and a workforce of plants, 400 coating plants, 150 recycling facilities approximately 8,500 people. and 10 factories producing road equipment) and maintenance and services. Vinci Concessions manages a complete portfolio of transport infrastructure and public facility concessions in Vinci Construction is France’s market leader in around 20 countries. construction, combining building, civil engineering, hydraulic engineering and services. With revenues of €13,118 million, operating profit from ordinary activities of €584 million and 64,000 employees, its business consists of three complementary components:With a presence on five • A network of French local subsidiaries, through Vincicontinents, Vinci is still Construction France, and internationally through Vinci Construction UK, CFE mainly in Benelux, SKE inthe largest listed European Germany, Warbud, Prumstay-FCC and SMP in Central Europe, Sogea-Satom in Africa, as well as 30 localconstruction company and branches in Overseas France.increased its sales by 8% in 201022
  • 23. • Highly technical business lines include specialised civil Sales by geographical area engineering technologies with Soletanche Freyssinet (structures, soil foundations and technologies, nuclear 911 1,698 engineering), dredging with DEME and oil and gas 1,297 infrastructure with Entreprose Contracting. 1,081• Management of complex projects with Vinci 1,470 Construction Grands Projects, operating worldwide on major civil engineering and building structures. 1,844 20,927The order book at December 2010 achieved €25,900 1,864million, 49% of which relates to France and 51%to outside France. By business line, the construction 2,284order book amounts to €14,500 million (13 monthsof average business activity), the energy order bookamounts to €6,300 million (9 months of averagebusiness activity) and the concessions order bookamounts to €5,200 million (8 months of averagebusiness activity). France Rest of Europe Central and Eastern Europe America United Kingdom Africa Key Data (December 2010) Millions of euros Germany Asia - Pacific Assets Benelux Non-current assets 36,410 Current assets 20,003 Total assets 56,413 Sales by segment Liabilities and equity Equity 13,025 5,226 Non-current liabilities 21,431 Current liabilities 21,957 Total liabilities and equity 56,413 Income statement Sales 33,376 Domestic sales 20,927 International sales 12,449 Construction sales 28,150 Non-construction sales 5,226 EBITDA 5,052 EBIT 3,429 28,150 Net profit 1,900 Net profit attributable to the 1,776 Group Contracting Concessions Other Key Data Net debt 13,060 Order book 25,900 Market capitalisation 23,694 EPoC 2010 European powers of construction 23
  • 24. Bouygues SA Bouygues SA was incorporated by Francis Bouygues include the Gautrain rapid rail link between Pretoria and in 1952, and at December 2010 it employed more Johannesburg, which was partially handed over for the than 133,000 people with revenues of €31,225 million 2010 Football World Cup in South Africa, several luxury (€9,719 million on international markets). tourist complexes in Cuba, the Hodariyat Bridge in Abu Dhabi, the Machang Bridge and Pusan Port in South Its main shareholders are foreign shareholders (40.3%). Korea, the Tangiers ferry port and the new container In addition, other French shareholders control 22.6% of port in Morocco, and the Singapore Sports Hub, the the Group, employees control 19% and SCDM controls world’s largest sports infrastructure private-public 18.1%. partnership. Bouygues businesses are focused on two sectors: Bouygues Inmobilier operates in residential and Construction, which includes Bouygues Construction commercial property, retail parks and urban (building, civil works, energy and services), Bouygues development in France and Europe, employing 1,440 Inmobilier (property) and Colas (roads), and Telecoms/ people and achieving sales of €2,409 million in 2010. Media, including TF1 and Bouygues Telecom. Colas operates in around 40 countries worldwide, Construction employs close to 65,000 people and achieved sales Bouygues Construction operates in more than 80 of €11,592 in 2010. Founded in 1929 and acquired countries and generates nearly half of its sales outside by Bouygues SA in 2000, it has become a leader France. With 54,000 employees, sales of €9,002 million in the construction and maintenance of transport and net profit of €538 million in 2010, the Company infrastructure, urban development and recreational is primarily present in the European Union, Central and facilities. In 2010, France was the origin of 57% of the Eastern Europe, Asia-Pacific and Africa. Some of the division’s sales, North America originated 19%, Europe major projects currently underway or recently completed excluding France 16% and Africa/Indian Ocean/Asia 8%. Telecoms/Media The Group manages 43.1% of TF1, France’s leading general-interest television channel with a 24.5%Bouygues diversification audience share at December 2010. The Group is also present in pay television with channels such as Eurosportprevented it from being and employs more than 8,000 people, with total sales of €2,589 million in 2010.affected by the decrease in its Bouygues Telecom covers 84% of the Frenchconstruction activities in 2010, population with its 3G+ network and has more than 11,000,000 mobile telephone customers and 808,000which was offset by an increase fixed broadband customers. With more than 9,000 employees, the Group sales were €5,621 million inin telecom and media sales 2010.24
  • 25. Other Sales by geographical areaIn 2006, the Bouygues Group acquired the Frenchgovernment’s stake in Alstom, and it has subsequently 1,351 145 2become its largest shareholder (owning 30.77% at 1,643March 2011). Alstom is a world leader in rail transport, 2,301power generation and transmission infrastructure.Alstom is consolidated as an equity investment in theGroup’s financial statements. 4,277The Group’s order book amounts to €22,621 million 21,506and is split by business line among Construction(€14,200 million, with €7,000 million in 2012 orbeyond), Inmobilier (€2,280 million) and Roads (€6,141million). Key Data (December 2010) Millions of euros Assets France Africa Non-current assets 18,620 Rest of Europe South America Current assets 16,966 North America Other countries Total assets 35,586 Asia - Pacific Liabilities and equity Equity 10,607 Sales by segment Non-current liabilities 8,732 Current liabilities 16,247 Total liabilities and equity 35,586 8,222 Income statement Sales 31,225 Domestic sales 21,506 International sales 9,719 Construction sales 23,003 Non-construction sales 8,222 EBITDA 3,701 23,003 EBIT 1,760 Net profit 1,263 Net profit attributable to the 1,071 Group Construction Telecoms/Media Other Key Data Net debt 2,473 Order book 22,621 Market capitalisation 12,122 EPoC 2010 European powers of construction 25
  • 26. Hochtief AG Hochtief Asia PacificHochtief increased its sales by Sales of €10,340 million, operating earnings of €661 million and 46,376 employees make Hochtief Asia11% in 2010, with profit from Pacific the leading division of the Group. Hochtief is present in Asia and Australia via its majorityoperating activities up by 36% shareholding in the Leighton Group. Its services encompass building and infrastructure construction,on 2009 raw materials extraction and concessions, project development, and maintenance and services. Infrastructure and Construction makes Hochtief leader Incorporated in 1873, Hochtief is the third-largest in Australia and key supplier in the Gulf States. Contract provider of construction-related services in Europe and Mining constitutes a profitable business with projects market leader in Germany. With more than 70,000 under contract for periods of up to 30 years. One of employees and sales of €20,159 million in 2010, the these contracts is the largest contract mining project in Group is represented in all the worlds major markets. the world. ACS controlled more than 40% of Hochtief at April Hochtief Europe 2011. Among the remaining shareholders, Qatar The Hochtief Europe division plans, develops, Holding, LLC Doha holds an additional 10%. Free float implements, operates and manages real estate and of almost 50% is allocated to German investors (23%), infrastructure facilities. Hochtief Europe sales exceeded North American investors (11%) and investors in the rest €2,300 million in 2010, with more than 9,200 of the world. employees. Hochtief segments its business into four divisions: The order book at December 2010 achieved €47,490 million (more than 24 months of activity). By region, Hochtief Americas 71% is allocated to Africa and Asia-Pacific, 17% is The Hochtief Americas division coordinates the activities allocated to America and the rest to Europe, with a of the Hochtief companies in the USA and Canada. special focus on Germany (8%). With more than 7,000 employees and sales of €6,396 Other million, the Hochtief Americas division, led by its The remaining business of the Group includes basically subsidiaries Turner and Flatiron, is present in activities Services and Concession. such as educational, healthcare and commercial real estate as well as the area of sustainable building also Hochtief Concessions includes airports, roads, social known as Green Building. infrastructure and further public-private partnership (PPP) projects. Hochtief Concessions sales amounted to Yankee Stadium of New York, Renssealer Polytechnic €110 million, with more than 300 employees in 2010. Institute in Troy (New York), Pacific Street Bridge in Oceanside (California) or Port Mann Bridge in Vancouver are some of the flagship projects of Hochtief Americas.26
  • 27. Key Data (December 2010) Millions of euros Sales by geographical area 7 1,642Assets 977Non-current assets 5,868Current assets 9,118Total assets 14,986 8,302Liabilities and equity 6,891Equity 4,264Non-current liabilities 3,373Current liabilities 7,349 2,340Total liabilities and equity 14,986 Germany AsiaIncome statement Rest of Europe Australia America AfricaSales 20,159 Domestic sales 1,642 Sales by segment International sales 18,517 1,047 Construction sales 19,312 2,377 Non-construction sales 847 6,396EBITDA 1,643EBIT 715Net profit 546Net profit attributable to the 288GroupOther Key Data 10,339Net debt 772 Hochtief Americas Hochtief EuropeOrder book 47,490 Hochtief Asia - Pacific Other activitiesMarket capitalisation 4,451 EPoC 2010 European powers of construction 27
  • 28. ACS Group ACS commenced operations in 1983, and has become a Concessions world leader in construction and services activities with The concession business of the Group is managed by more than 140,000 employees worldwide. Iridium and achieved sales of €110 million in 2010. The Group’s main shareholders are Spanish institutional Environment investors (Corporación Financiera Alba 18%, The Environment business of the Group includes Corporación Financiera Alcor 14% and Inversiones activities related to the conservation and improvement Vesan 13%). of the environment (58% of the total revenues of this area) and the outsourcing of the facility maintenance of The Group portfolio is divided as follows: buildings (rest of revenues). Approximately 11% of the division sales (€2,562 million) were obtained abroad. Construction The construction business of the Group is headed by Industrial Services Dragados and is structured into civil works projects (75% Industrial Services sales of ACS amounted to €7,158 of total construction group revenue, including highways, million in 2010 (37% of which were international sales). railways, hydraulic works, airport works and ports) and building projects (including residential building, with The main projects accomplished relate to maintenance 6% of total construction revenues, and non-residential activities of electricity, gas and water distribution building, with 19% of total construction revenues). networks, telecommunications systems, railway installations, climate control systems, engineering, urban ACS is construction leader in Spain, has a long track services such as traffic and transport systems, integral record in South America and is developing a strong maintenance of public infrastructures, wind farms or presence in countries such as the United States and industrial solar thermal energy plants. Poland. In 2010, 33% of construction sales (€5,593 million) were obtained abroad. Strategic Investments The Group holds significant investments in construction groups, basically Hochtief (approximately 46 % at June 2011) and various companies such as Iberdrola (investment of 19% in the largest energy companyAfter taking control of Hochtief in Spain) and Abertis (10% indirect investment in this international group which manages mobility andin 2011, ACS became the telecommunications infrastructures through toll roads, car parks, airport and logistics parks).leading European construction The order book of the Group totalled €28,777 milliongroup based on sales of EPoC at December 2010, and it is segmented by business line into Construction (€11,087 million), Industrial Services2010 (€6,846 million) and Environment (€10,844 million).28
  • 29. Key Data (December 2010) Millions of euros Sales by geographical areaAssets 1,562Non-current assets 15,995 2,139Current assets 18,190Total assets 34,185Liabilities and equity 1,191Equity 4,443Non-current liabilities 10,771 10,488Current liabilities 18,971Total liabilities and equity 34,185 Spain Other OECD countriesIncome statement Rest of European Union Other countriesSales 15,380 Domestic sales 10,488 International sales 4,892 Sales by segment (43) Construction sales 5,593 Non-construction sales 9,787 5,593EBITDA 1,500 7,158EBIT 1,077Net profit 1,355Net profit attributable to the 1,312Group 110Other Key DataNet debt 8,003 2,562Order book 28,777 Construction Industrial Services Concessions Other activitiesMarket capitalisation 10,773 Environment EPoC 2010 European powers of construction 29
  • 30. Eiffage Norscut motorway in Portugal and the APRR motorwaysWith profit from operating network. The Group’s concession business achieved sales of €2,310 million in 2010, with EBITDA over salesactivities of over €1,000 million of 68% and net debt of almost €14,000 million.in 2010, Eiffage ranks within Construction Construction sales amounted to €3,656 million in 2010the TOP 5 of the EPoC 2010 in with a mix of public-private sales of 47%/53%.terms of sales Public Works Public Works sales were €3,865 million in 2010, basically in the development of roads which contributes over 61% of total division sales. Incorporated in 1844 as a family owned company, a century and a half later Eiffage has become one of the Energy top five building companies in Europe. The energy business of the Group provided sales of €3,003 million in 2010 and it is being reorganised in More than 70,000 employees helped Eiffage to generate order to develop new offers, particularly in growth revenue of more than €13,000 million (15% through markets around new energy sources and energy international projects). performance contracts. Eiffage’s international presence is basically focused on Metal European countries. Senegal provided sales of €100 The metal business of the Group obtained sales of €707 million in 2010. million in 2010 and carried out metal construction work (41% of division sales), maintenance and industrial Employees play a fundamental role in the shareholder works (39% of division sales) and special buildings structure of Eiffage. Around 85% of Eiffages employees (19%), with customers in the public and private sector in in France are also Group shareholders and own 26% a proportion of 24%/76%. of the Company. The remaining shareholders are mainly institutional investors (FSI 20%, Eiffaime 8% and The order Book of the Group achieved €10,735 million GROUPAMA 6%) and free float (36%). and can be broken down by segment into Construction (€4,620 million), Public Works (€2,980 million), Energy Eiffage operates through five business lines: (€2,265 million) and Metal (€870 million). Concessions and public-private partnerships (PPPs) Eiffage Concessions manages and operates motorways and other infrastructures, such as the Millau Viaduct, the30
  • 31. Key Data (December 2010) Millions of euros Sales by geographical area 100Assets 1,917Non-current assets 19,716Current assets 6,277Total assets 25,993Liabilities and equityEquity 2,501Non-current liabilities 15,622Current liabilities 7,870 11,536Total liabilities and equity 25,993 FranceIncome statement Rest of Europe AfricaSales 13,553 Domestic sales 11,536 International sales 2,017 Sales by segment Construction sales 7,521 707 12 Non-construction sales 6,032 3,003 3,656EBITDA 1,852EBIT 1,041Net profit 326Net profit attributable to the 232Group 2,310Other Key Data 3,865Net debt 12,494Order book 10,735 Construction Energy Concessions HoldingMarket capitalisation 3,806 Public works Metal EPoC 2010 European powers of construction 31
  • 32. Skanska The origins of the Company date back to 1887 when In the Nordic region, the UK, the Czech Republic, Aktiebolaget Skånska Cementgjuteriet was established Slovakia and Poland, its operations cover the and started manufacturing concrete products. construction and investment businesses. More than a century later, Skanska obtains In Latin America, Skanska is mainly active in the oil, gas approximately 80% of its sales outside Sweden. and energy sector and in PPPs. Skanska’s main shareholders are Swedish companies The structure of the Group separates construction, and institutions that together own 42% of the Group. which represents 93% of the Group’s total sales in Other Swedish investors control 25% of the Group. 2010, and the remaining businesses, where we can Shareholders abroad control 23% of Skanska and the differentiate basically residential development and rest of the shares are in the hands of the public sector commercial property development. and relief and interest organisations. Skanskas construction services combine the In the USA, which is its single largest market, Skanska construction of high buildings or bridges as well as develops building and civil engineering projects, and is private homes in both the private and public sector. also present in the USA Public-Private Partnerships (PPP) segment. Residential development started more than 4,000 houses and sold more than 3,000 in 2010. In 2010 the Company also entered the UK market. Total sales achieved by this division reached over €700 million.Skanska obtained almost 80% Commercial property development started 14 newof its sales abroad in 2010, projects in 2010.mainly in the USA, the Nordic The order book of the Group totalled €15,421 million, 47% of which was allocated to the Nordic region, 25%countries, Eastern Europe, South to the USA and the rest of the world, most notably the UK, Latin America, Poland and the Czech Republic.America and the UK32
  • 33. Sales by geographical areaKey Data (December 2010) Millions of eurosAssets 2,435Non-current assets 1,733Current assets 6,931 5,142Total assets 8,664Liabilities and equityEquity 2,318Non-current liabilities 445 5,283Current liabilities 5,901Total liabilities and equity 8,664 SwedenIncome statement Rest of Europe AmericaSales 12,815 Domestic sales 2,435 International sales 10,380 Sales by segment Construction sales 11,871 944 Non-construction sales 944EBITDA 735EBIT 572Net profit 422Net profit attributable to the 422GroupOther Key DataNet debt (308) 11,871Order book 15,421 Construction Other activitiesMarket capitalisation 6,040 EPoC 2010 European powers of construction 33
  • 34. Strabag SE The range of services includes a wide variety of projectsThe net cash position of of different sizes, encompassing excavation, power plant construction, commercial, industrial and residentialStrabag Se reached €669 million buildings and major bridge work. Additionally, this segment includes all activities in the field ofin 2010, the highest net cash environmental technology.position among the EPoC 2010 Division sales amounted to €4,279 million in 2010, with an operating margin of 3.9% and a workforce of more than 18,000 employees. Transportation Infrastructures The Transportation Infrastructures segment covers all Strabag SE’s history dates back to 1835, but almost activities in road and railway construction and civil two centuries later the Group has become one of the engineering and in building materials production, the leading construction players in Europe. The Group exploitation of raw materials, as well as sports and obtained sales of €12,777 million in 2010, mainly in its leisure facilities. core markets, Austria and Germany. In addition, via its numerous subsidiaries, Strabag SE is present in all the Transportation Infrastructures sales amounted to countries in Eastern and South-East Europe, in selected approximately €5,810 million in 2010, with an operating markets in Western Europe, on the Arabian Peninsula, margin of 3.2% and 30,059 employees. as well as in Canada, Chile, China and India. Strabag SE generates more than 70% of its construction output in Special Divisions and Concessions markets in which it holds one of the top three positions. This segment comprises tunnelling works, ground These include the Czech Republic, Hungary, Slovakia, engineering, project development, Public-Private Poland and Romania. Partnership projects as well as property and facility services. Strabag SE is one of the most highly renowned Strabag SE’s main shareholders are the Haselsteiner tunnel builders in Europe, with years of experience in Group, Rasperia Trading, the Raiffeisen Group and projects all over the world. the Uniqa Group, which control 29.5%, 17%, 15.5% and 15% of the Group, respectively. Free float of the Sales of this segment amounted to €2,518 million in Company represents 23% of the total shares of the 2010, with a workforce of almost 20,000 people and Group. zero profit at December 2010 due to high losses in international projects (e.g. Libya) and tunnelling projects Its portfolio is divided into Building Construction & Civil in Hungary and Sweden. Engineering, Transportation Infrastructures and Special Divisions and Concessions. The Group’s order book achieved €14,739 million at December 2010 and by division is allocated to Building Construction & Civil Engineering Building (approximately €5,700 million), Transportation The Building Construction & Civil Engineering segment Infrastructures (approximately €4,700 million) and of the Group is the basic business field of Strabag SE. Special Divisions and Concessions (approximately €4,300 million).34
  • 35. Key Data (December 2010) Millions of euros Sales by geographical areaAssets 3,020Non-current assets 4,345Current assets 6,037 5,051Total assets 10,382 580Liabilities and equityEquity 3,232 867Non-current liabilities 2,364 1,352Current liabilities 4,786 1,907Total liabilities and equity 10,382 Germany Czech RepublicIncome statement Austria Hungary Poland Other countriesSales 12,777 Domestic sales 1,907 Sales by segment International sales 10,870 170 2,518 Construction sales 12,777 4,279 Non-construction sales -EBITDA 735EBIT 299Net profit 188Net profit attributable to the 175Group 5,810Other Key DataNet debt (669) Building Construction Special Division & Civil Engineering & ConcessionsOrder book 14,739 Transportation Other activities InfrastructuresMarket capitalisation 2,516 EPoC 2010 European powers of construction 35
  • 36. Balfour Beatty Balfour Beatty was founded by George Balfour, a engineering, ground engineering and rail engineering. Scottish mechanical engineer, and Andrew Beatty, an Sales in 2010 achieved €7,860 million, with a margin English chartered accountant. The company described of 3.1%. By geographical area, the UK represents 51% itself as "general and electrical engineers, contractors, of the segment sales, the USA 31% and the rest of the operating managers for tramways, railways and lighting world 18%. properties and for the promoting of new enterprises”. At December 2010, around half of the Group’s revenues Professional services come from outside of the UK, with over 30% from the The acquisition of Parsons Brinckerhoff in 2009 USA and 11% from the rest of the world. transformed the Group’s capabilities in this business line that includes project management, architectural Its main shareholders are British institutional investors, services, project design, technical services, planning or most notably the following, with more than 3% of consultancy. Sales of this segment amounted to €1,880 shares: Standard Life Investments Limited (7.88%), million in 2010, with a margin of 0.6%. 53% of total Prudential PLC. (5%), Blackrock Inc. (5%), Legal & professional services sales are obtained in the USA and General Group Plc. (3.92%) and Axa SA (3.21%). 18% in the UK. Balfour Beatty’s activity is segmented into four lines: Support services Construction Services, Professional Services, Support The support services of the Group include facilities Services and Infrastructure Investments. management and business services outsourcing, upgrade and maintenance of water, gas and electricity Construction services networks, highway network management, operation The construction services of the Group include building, and maintenance and rail renewals. Support services design, construction management, refurbishment sales achieved €1,672 million in 2010, with a margin of and fit-out, mechanical and electrical services, civil 2.7%. Infrastructure investments This segment operates a portfolio of long-term PPPBalfour Beattys professional concessions, primarily in the education, health and roads/street lighting activities. The Group managesservices segment tripled its sales 30 concessions in the UK, 18 in the USA and 1 in Singapore.volume in 2010, consolidating The Group’s order book reached €17,719 million, ofthe acquisition of Parsons which Construction Services account for 60%, Support Services 30% and Professional Services 10%. By year,Brinckerhoff in 2009 52% of the total order book will be accrued in 2012 and beyond.36
  • 37. Key Data (December 2010) Millions of euros Sales by geographical areaAssetsNon-current assets 3,384 2,886Current assets 2,871Total assets 6,255 5,820Liabilities and equityEquity 1,349Non-current liabilities 1,465 3,582Current liabilities 3,441Total liabilities and equity 6,255 United Kingdom America Not specifiedIncome statementSales 12,288 Domestic sales 5,820 Sales by segment International sales 6,468 876 Construction sales 7,860 1,672 Non-construction sales 4,428EBITDA 422EBIT 240 1,880 7,860Net profit 167Net profit attributable to the 167GroupOther Key DataNet debt (604) Construction services Support services Professional services Other activitiesOrder book 17,719Market capitalisation 2,637 EPoC 2010 European powers of construction 37
  • 38. Ferrovial management and maintenance services to public andFerrovials EBITDA reached private installations and infrastructures. Main brands are Ferroser and Cespa in Spain and Amey in the UK.€2,514 million at December Sales amounted to €3,896 million in 2010, with 62% obtained abroad. EBITDA achieved by Ferrovial Services2010, placing the Spanish was more than €400 million in 2010.group as the third highest cash Construction Ferrovial is involved in all areas of construction, includinggenerator of the EPoC 2010 civil works and building, in Spain and abroad, with a solid presence in Poland or the USA. Main brands are Ferrovial-Agroman in Spain, Budimex in Poland or Webber in the USA. Sales totalled €4,525 million in 2010, with EBITDA of €231 million. Rafael del Pino y Moreno founded Ferrovial in 1952. Since then, the Group has become the worlds leading Airports private investor in transportation infrastructures, with a The airports of Heathrow, Stansted, Glasgow, workforce of approximately 70,000 employees. Edinburgh, Aberdeen and Southampton (in the UK) and Antofagasta (Chile) obtained revenues of €2,799 The only shareholder who controls more than 10% of million and EBITDA of €1,272 million for the Group in the Group is Portman Baela, S.L. (controlled by the Del 2010. Net debt of the Airport division was €14,529 at Pino family), which holds 44.6% of the Group shares. December 2010. The Company manages key infrastructure assets such Highways as Canadas 407 ETR highway and Londons Heathrow Toll road revenues in 2010 amounted to €869 million, Airport. It also provides municipal services to more with EBITDA of €630 million. 407 ETR generated than 800 cities and towns in Spain and to the millions revenues of €456 million, with 29% growth on 2009. who use the Madrid metro system, and the hundreds Traffic on this highway grew by 6% and EBITDA by 32%. of kilometres of streets and highways where Amey This subsidiary is consolidated by the equity method performs maintenance services in the United Kingdom. since the last quarter of 2010. Net debt of the Group’s Toll Road division was €5,026 at December 2010. Ferrovials activities are divided into four business lines: The Group’s order book achieved €22,189 million in Services 2010 and is distributed between Services (€12,003 Ferrovial Services has become one of the leading million) and Construction (€10,186 million, 65% of European companies providing environmental which will be obtained abroad).38
  • 39. Sales by geographical areaKey Data (December 2010) Millions of eurosAssets 2,007Non-current assets 35,465 4,203Current assets 7,822 1,170Total assets 43,287Liabilities and equity 1,024Equity 6,824Non-current liabilities 28,596Current liabilities 7,867 3,765Total liabilities and equity 43,287 United Kingdom PolandIncome statement Spain Other countries The United StatesSales 12,169 Domestic sales 3,765 Sales by segment International sales 8,404 869 80 Construction sales 4,525 Non-construction sales 7,644 3,896 2,799EBITDA 2,514EBIT 1,514Net profit 1,815Net profit attributable to the 2,163GroupOther Key Data 4,525Net debt 19,789 Services Airports OthersOrder book 22,189 Construction HighwaysMarket capitalisation 6,951 EPoC 2010 European powers of construction 39
  • 40. FCC Originally founded as a construction company in 1900, Versia eleven years later FCC branched out into the provision The rest of the services provided by the Group are of municipal services with a contract to clean and included in the segment called “Versia”. Revenue maintain Barcelonas sewer network. Since then, FCC obtained by this segment in 2010 was €846 million, has continued diversifying its portfolio geographically with EBIT of €193 million. By business line, logistics and by business line. represented 34% of total revenues, handling 29% and urban furniture 15%. Other sources of revenue are FCC’s main shareholder is Esther Koplowitz, through the parking services, vehicle testing and maintenance. 33% Company “B 1998, S.L.” that controls more than 50% of of sales were obtained abroad (mainly Western Europe, the Group. The remaining Group shares are controlled giving rise to 26% of division sales). by domestic institutions (13.7%), treasury stock (10%), foreign institutions (9.5%) and others (13.1%). Construction Construction sales of FCC amounted to €6,694 million The business portfolio of FCC includes environmental in 2010, with EBIT of €242 million. By type of business, services and water management, construction of large civil works represented 71% of the segment sales, infrastructure, cement production, and renewable non-residential building 22% and residential building energy production. The Group has a presence in 7%. The domestic market contributed 45% of the more than 50 countries worldwide and over 46% of segment sales. its revenue comes from outside Spain (mainly Europe and the USA). Revenue in 2010 amounted to €12,114 Cement million, with 92,293 employees. The Cement division of FCC leads the Spanish market, where it obtained 67% of its 2010 sales (€887 million). Environmental Services Environmental services and water management The Group’s order book amounted to €35,309 million contributed sales of €3,672 million to the Group in 2010 and is distributed between Environmental Services (36% of which were obtained abroad, mainly in the UK (€25,325 million, €8,000 million of which come from and Central & Eastern Europe). EBIT achieved by the abroad) and Construction (€9,984 million, 45% of which Environmental Services segment was €324 million. come from abroad). FCCs significant order book will secure the presence of the Spanish company in the top ten in future editions of the EPoC40
  • 41. Key Data (December 2010) Millions of euros Sales by geographical areaAssets 279 502 613Non-current assets 13,394 724Current assets 8,585 724Total assets 21,979 6,541Liabilities and equity 1,115Equity 3,206Non-current liabilities 10,963 1,616Current liabilities 7,810Total liabilities and equity 21,979 Spain United KingdomIncome statement Austria Western Europe Eastern Europe The United StatesSales 12,114 Germany Other countries Domestic sales 6,541 International sales 5,573 Sales by segment Construction sales 6,694 887 15 Non-construction sales 5,420 3,672EBITDA 1,435EBIT 774Net profit 314Net profit attributable to the 301 6,694Group 846Other Key DataNet debt 7,749Order book 35,309 Environmental Services CementMarket capitalisation 2,931 Versia Other activities Construction EPoC 2010 European powers of construction 41
  • 42. Bilfinger Berger SE Bilfinger Berger SE was established in 1975 through the With sales in 2010 of €1,106 million and EBIT of €83 merger of three construction companies, although its million, 52% of sales in this segment were obtained in historical roots go back to 1880. Germany, 24% in the rest of Europe, 15% in Africa and 8% in Asia. Its main shareholders are European institutional investors, most notably several German investors with a Building and Facility Services 31% interest and several British investors with 23%. The Building and Facility Services business segment comprises facility management services in Europe The Bilfinger Berger Groups range of activities and the USA, building construction in Germany, and comprises the Industrial Services, Power Services, construction-related services in Nigeria. 59% of the total Building and Facility Services and Construction business sales of this segment (€2,333 million) were obtained segments, with overall sales of €8,007 million and in Germany and 20% in Africa. The remaining sales more than 58,000 employees and a presence on five were obtained in other European countries (13%) and continents. America (8%), obtaining overall EBIT of €80 million. Industrial Services Construction Bilfinger Berger Industrial Services is specialised in the The Construction segment of the Group is present in repair, maintenance and modernisation of industrial Germany (35% of sales) and other European countries plants, and grew significantly with the acquisition in (40%). Outside Europe, the Group acts primarily as 2009 of MCE in Austria. Sales in 2010 of this segment technology partner for local companies. Sales of this reached almost €3,000 million, with EBIT of €134 segment amounted to €1,725 million in 2010, with million. The subgroup is active in many European EBIT of €31 million. Non-European sales of this segment countries and in the USA. originated mainly in Asia (20%) and the rest of the world (5%). Power Services Bilfinger Berger Power Services is focused on The Group’s order book achieved €8,585 million maintenance, repair, efficiency enhancements and at December 2010 (Industrial Services 31%, Power lifetime extensions of existing plants as well as the Services 16%, Building and Facility Services 26% and manufacture and assembly of components for power Construction 27%). plant construction. Bilfinger is one of the only three EPoCs that reached sales of over €500 million at December 2010 in Europe, America, Africa and Asia-Oceania42
  • 43. Key Data (December 2010) Millions of euros Sales by geographical areaAssets 483 26 (16) 635Non-current assets 4,460Current assets 3,477 591 3,358Total assets 7,937Liabilities and equityEquity 1,812Non-current liabilities 2,511 3,030Current liabilities 3,614Total liabilities and equity 7,937 Germany AsiaIncome statement Rest of Europe Australia America Other countriesSales 8,007 Africa Domestic sales 3,358 International sales 4,649 Sales by segment Construction sales 4,058 (89) 1,725 Non-construction sales 3,949EBITDA 511 2,932EBIT 343Net profit 286Net profit attributable to the 284GroupOther Key Data 2,333 1,106Net debt 48Order book 8,585 Industrial Services Construction Power Services Other activitiesMarket capitalisation 2,852 Building and Facility Services EPoC 2010 European powers of construction 43
  • 44. Bam Groep The history of Royal Bam Groep NV goes all the way 1,800 employees, and Bam Woningbouw is active in all back to 12 May 1869. On that date, Adam van der Wal sectors of the Dutch residential market, namely project opened a carpentry business in Groot-Ammers - a rural development, new build, maintenance and renovation village in the Alblasserwaard region, which lies east of and the redesign of buildings, with around 2,500 Rotterdam. Since then, Bam Groep has become the employees. main Dutch constructor with overall sales of €7,611 million in 2010. Construction sales amounted to €3,211 million in 2010, with an average 3% margin. Geographically, 43% of Three institutional investors and one private investor sales were derived from the Netherlands, 38% from the hold interests of 5% or more in Bam Groep. ING Groep UK and 14% from Germany. NV controls 10.3% of the Group, A. Van Herk 9.3%, Delta Lloyd (Aviva Plc.) 6.0% and Governance for Property Investments Owners Llp. 5.0%. Sales of €593 million were obtained mostly in the Netherlands (88%). The Group activity portfolio is divided into Construction, Property Investments, Civil Engineering and Rest of Civil Engineering business. Civil Engineering sales amounted to €3,659 million in 2010, with a 2.8% average margin. The Dutch market Construction represented 40% of the total sales of the segment, Bam Utiliteitsbouw and Bam Woningbouw are the the German market represented 22% and the Belgian flagship companies of the Group in the construction market 18%. Among the rest of the world, we can segment. Bam Utiliteitsbouw operates in the Dutch highlight the presence of the Group in Ireland. non-residential construction market, with around Rest of business The Group maintains in its portfolio 32 PPP contracts (11 under construction at December 2010). MechanicalAfter the impairment losses and electrical contracting amounted to €281 million in 2010, showing an 8% increase compared to 2009.recognised by Bam Groep in Consultancy and engineering generated revenue of €210 million in 2010, with a margin of 6.5%.2010, the group expects to The Group’s order book totalled €12,100 million inobtain a margin before tax of 2% 2010. €6,300 million will be executed in 2012 and €5,800 million thereafter. The order book by segmentin 2011 is mostly attributable to construction (€4,657 million), property (€1,394 million) and civil engineering (€5,517 million).44
  • 45. Key Data (December 2010) Millions of euros Sales by geographical area 336Assets 677Non-current assets 2,560 287Current assets 4,574Total assets 7,134 854 3,397Liabilities and equityEquity 1,102Non-current liabilities 2,316Current liabilities 3,716 2,060Total liabilities and equity 7,134 United Kingdom Asia / OceaniaIncome statement Rest of Europe Africa America Other countriesSales 7,611 Domestic sales 3,397 Sales by segment International sales 4,214 148 Construction sales 7,225 Non-construction sales 386EBITDA 206 3,211EBIT (30) 3,659Net profit 18Net profit attributable to the 15GroupOther Key Data 593Net debt 1,357 Construction Civil EngineeringOrder book 12,100 Property Investments Other activitiesMarket capitalisation 1,261 EPoC 2010 European powers of construction 45
  • 46. Acciona Acciona was set up over a century ago and employs Energy over 30,000 employees with a presence in more than 30 Acciona Energy is active in all the main clean energies countries on five continents. (concentrated solar power, solar, wind, conventional hydro, mini hydro special regime, biomass or biofuels), Acciona’s main shareholder is Grupo Entrecanales, S.A., and is ranked as the number one wind farm developer which controlled almost 60% of the Group at December and builder in the world, and seventh in the world 2010. as a manufacturer of wind turbines using their own technology. Acciona divides its portfolio into the following business divisions: Energy segment sales amounted to €1,497 million in 2010, with EBITDA of €821 million and a presence in Infrastructure Canada, the USA, Mexico, Chile, Italy, Spain, Poland, Acciona Infrastructure is the longest-standing company India and Australia. in the Acciona Group. It was founded in 1850 and is well-established in Spain. On an international level, it Water and Environmental & Urban Services participated in significant projects such as the Petronas The Water business line is headed by Acciona Agua, Towers in Malaysia, the Ting Kau Bridge in China and which focuses on the treatment of water including the Central Coastal Road Network in Chile. the project design and construction of desalination plants and waste water treatment plants, operation Accionas Infrastructure segment sales amounted to and maintenance, the supply of drinking water or the almost €3,000 million in 2010. With EBITDA of €204 sanitation of cities. million, Acciona infrastructure has a presence in Canada, Mexico, Chile, Brazil, Colombia, Italy, Spain, Poland and The Environmental and Urban Services division Australia. manages services related to the urban environment and environmental protection through activities such as Real Estate street cleaning, construction, financing and maintenance Created in 1989, the Real Estate business division had of car parks and hospitals or burial services. sales of €204 million in 2010 with an EBITDA/ Sales ratio of over 10%. Sales of Water and Environmental & Urban Services reached €732 million in 2010, with EBITDA of €60 million this división has a presence in the USA, Mexico, Chile, Brazil, Spain, Italy and Australia.Acciona obtains more than Logistics & Transport Serviceshalf of its revenues from Acciona Logistic and Transport Services includes companies such as Acciona Trasmediterranea, thenon-construction activities and Spanish leader of the sea transportation of goods and passengers; Acciona Airport Services, providing airportis ranked seventh among the and handling management services; and Acciona Logistica, Acciona Rail Services, Acciona Forwarding andEPoC 2010 in terms of market Acciona Distribution for road and rail transport, logistics and distribution.capitalisation Sales of this segment amounted to €777 million in 2010, with EBITDA of €74 million.46
  • 47. Other business Sales by geographical areaAcciona has developed other lines of business, includingfinancial services, fund management and stock broking 182through Bestinver; the production of top quality wines 760through Hijos de Antonio Barceló; and the designand development of exhibitions, museums and showsthrough GPD.Sales of this segment amounted to €120 million in 9872010, with EBITDA of €46 million.The Groups order book totalled €12,070 million in2010 and, by segment, the construction order bookamounts to €7,258 million (38% internationally) and 4,334the water order book amounts to €4,812 million (39%internationally). Key Data (December 2010) Millions of euros Spain Rest of OECD countries Rest of European Union Other countries Assets Non-current assets 13,615 Current assets 6,887 Total assets 20,502 Sales by segment Liabilities and equity (68) Equity 6,063 777 Non-current liabilities 7,039 Current liabilities 7,400 Total liabilities and equity 20,502 732 Income statement Sales 6,263 3,121 Domestic sales 4,334 International sales 1,929 Construction sales 3,121 Non-construction sales 3,142 1,497 EBITDA 1,211 EBIT 527 204 Net profit 184 Net profit attributable to the Infrastructure Water and Environmental & Urban Services 167 Group Real Estate Logistic & Transport Services Other Key Data Energy Other activities Net debt 6,587 Order book 12,070 Market capitalisation 4,667 EPoC 2010 European powers of construction 47
  • 48. Carillion Support ServicesCarillions Middle East In this segment the Group includes various activities, most notably facilities management, facilities services,Construction Services obtained rail services, road maintenance, utility services and consultancy businesses.over €500 million in 2010, with Support Services division sales amounted toan operating margin of 10% approximately €2,500 million in 2010, with an operating margin of approximately 5%. Middle East Construction Services In this segment the Group includes building and civil Carillion Plc. was created from the stock split of engineering activities in the Middle East and North Tarmac Plc in 1999, when the aggregates division of Africa. The Group is mainly present in Abu Dhabi, the combined group was separated from the business Oman, Qatar and Dubai. services and construction units. Twelve years later, Carillion Plc. continues being one of the UKs leading Sales of this segment reached over €500 million in support services and construction groups, employing 2010, with an operating margin of 10%. around 50,000 people. Construction Services (excluding the Middle East) Group sales in 2010 amounted to approximately €6,000 In this segment the Group includes building and civil million, with operations in the UK, other European engineering activities in the UK (77% of total revenue of countries, Canada, the Middle East, North Africa and the the division) as well as construction activities in Canada Caribbean. and the Caribbean. Three institutional investors hold interests of 5% or Segment sales amounted to almost €2,600 million in more in Carillion Plc. Schroder Plc. controls 11.3% of the 2010, with a 2% average margin. Group, Standard Life Investments 6.8% and Ameriprise Financial Inc. 5.2%. Six other institutional investors hold The Groups order book totalled €21,216 million at interests of 3% or more in the Group. December 2010. By segment we can highlight the Support Services order book (€13,639 million), Middle Carillion’s portfolio includes Construction works (where East Construction Services (€1,162 million), Rest of the Group differentiates the Middle East from the rest of World Construction Services (€3,264 million) and PPP the world) and Support Services. projects (€3,147 million).48
  • 49. Key Data (December 2010) Millions of euros Sales by geographical area 103Assets 826Non-current assets 1,927Current assets 1,737 586Total assets 3,664Liabilities and equityEquity 1,006Non-current liabilities 591 4,476Current liabilities 2,067Total liabilities and equity 3,664 United Kingdom Canada and Caribbean AreaIncome statement Middle East Other countriesSales 5,991 Domestic sales 4,476 Sales by segment International sales 1,515 240 Construction sales 3,169 Non-construction sales 2,822EBITDA 265 2,582EBIT 227 2,594Net profit 178Net profit attributable to the 171GroupOther Key Data 575Net debt (140) Support Services Other Construction ServicesOrder book 21,216 Middle East Construction Private Finance ServicesMarket capitalisation 1,819 EPoC 2010 European powers of construction 49
  • 50. NCC NCCs history starts in 1987, but in less than 25 years Roads the Group has become one of the leading construction NCC Roads engages in the production of aggregates and property development companies in the Nordic and asphalt, together with paving operations and road region. The Group had overall sales of €5,182 million in services. NCC Roads is the leading company in the 2010, with approximately 17,000 employees. Nordic market. Some operations are also conducted in the Saint Petersburg area. In addition, aggregate With more than 30,000 shareholders, only one products are exported to countries around the North shareholder owns an interest of 10% or more in the Sea and the Baltic Sea. share capital of the NCC Group. Nordstjernan AB is the largest individual shareholder, accounting for 23% of Road sales amounted to approximately €1,100 million in the share capital and 64% of the voting rights. 2010, with an operating margin of 3.3%. NCC is present in Sweden, Finland, Norway and Housing Denmark, and has also executed works in Germany, NCC Housing develops and sells housing in selected Russia and the other countries in the Baltic Sea area. Its markets in the Nordic region, the Baltic countries and portfolio is divided into Construction, Roads, Housing Germany. Housing sales amounted to approximately and Property Development. €700 million in 2010, with an operating margin of 4.8%. Construction The Group’s Construction division is specialised in the Property Development building of residential and office properties, other NCC Property Development develops and sells buildings, industrial facilities, roads or civil engineering commercial properties in indentified areas of growth in structures. Nordic markets. Sales amounted to approximately €200 million in 2010, with an operating margin of 5.8%. Construction sales amounted to €3,202 million in 2010, with an operating margin of 4.3%. Geographically, 62% The Groups order book (over €4,200 million) is of total sales were obtained in Sweden, 8% in Denmark, allocated mainly to Sweden (60%), Finland (16%), 17% in Finland and 13% in Norway. Norway (11%) and Denmark (10%). The second Swedish construction company in terms of sales volume obtained an operating margin of 4.6% in 2010, above the EPoC 2010 average (3.7%)50
  • 51. Key Data (December 2010) Millions of euros Sales by geographical areaAssets 821Non-current assets 640Current assets 2,828Total assets 3,468 1,074 2,782Liabilities and equityEquity 907Non-current liabilities 758 505Current liabilities 1,803Total liabilities and equity 3,468 Sweden Finland and rest of Baltic countriesIncome statement Denmark NorwaySales 5,182 Domestic sales 2,782 Sales by segment International sales 2,400 211 (68) Construction sales 5,182 717 Non-construction sales -EBITDA 236EBIT 236 3,202 1,120Net profit 160Net profit attributable to the 160GroupOther Key DataNet debt 90 Construction Property Development Roads Other activitiesOrder book 4,239 HousingMarket capitalisation 1,965 EPoC 2010 European powers of construction 51
  • 52. OHL OHL is the result of the merger of Obrascon, Huarte and The Concession Infrastructures Division obtained sales of Lain founded in 1911, 1927 and 1963 respectively. Since €1,509 million in 2010, with EBITDA of €747 million. then, OHL has become the fifth Spanish construction group with sales of €4,910 million in 2010. The Group is International Construction present in 27 countries across the five continents. The International Construction Division obtained sales of €1,829 million in 2010, with EBITDA of €150 million. Inmobiliaria Espacio, S.A. controls 57% of the Group, Half of the Division sales were obtained in Mexico and being the only investor that holds interests of 10% or the USA, 18% in Central Europe and 17% in Qatar. The more in the Group. Group is also present in Peru, Colombia and Chile. The OHL Group is composed of four divisions: National Construction Concession Infrastructures, International Construction, The National Construction Division obtained sales of National Construction, and Other Activities. €1,241 million in 2010, with EBITDA of €90 million. Concession Infrastructures Other Activities The Concession Infrastructures division of the The remaining revenues of OHL have their origin in Group develops, manages and promotes all types of engineering and construction turn-key projects for transportation infrastructure basically in Mexico, Brazil, industrial facilities, the promotion and exploitation of Spain, Chile and Peru. tourist infrastructures and resorts, and environmental services such as the desalination of sea and brackish OHL is the seventh-largest highways concessionaire in waters, the purification of urban and industrial waters the world and maintains a portfolio of 28 concessions and the treatment of potable water. with 23 highways (4,417 km), 2 railways, 2 ports and 1 airport. The Other Activities Division obtained sales of €331 million in 2010, with EBITDA of €18 million. The Groups order book totalled €84,307 million at December 2010, with 97% of this order bookOHL leads the EPoC 2010 attributable to the concession division. €5,760 million will be executed in 2011 and, by country, Mexicoranking of profitability by sales accounts for 49% of the Group’s order book, Brazil 30% and Spain 10%.with an operating margin of14.3%52
  • 53. Key Data (December 2010) Millions of euros Sales by geographical area 35 28 51 107Assets 172 271Non-current assets 8,582 1,496 381Current assets 4,020Total assets 12,602Liabilities and equity 476Equity 2,025Non-current liabilities 6,717 939 954Current liabilities 3,860Total liabilities and equity 12,602 Spain QatarIncome statement Mexico Chile Brazil PeruSales 4,910 Eastern Europe Argentina The United States Other countries Domestic sales 1,496 Algeria International sales 3,414 Sales by segment Construction sales 3,071 330 Non-construction sales 1,839EBITDA 1,005 1,830 1,241EBIT 700Net profit 252Net profit attributable to the 196GroupOther Key DataNet debt 4,420 1,509Order book 84,307 International Construction National ConstructionMarket capitalisation 2,763 Concession infrastructures Other activities EPoC 2010 European powers of construction 53
  • 54. Sacyr Sacyr Services Sacyr is the result of the merger of Sacyr and Valoriza is the flagship brand of the Sacyr Group’s Vallehermoso back in 2003. In 2010, the Group services division. This business line operates in obtained sales of €4,820 million (with 31% of sales environmental works (municipal services, waste obtained abroad) and had EBITDA of €572 million. management, landscape restoration and environmental projects), water (treatment, desalination, purification Shareholders of the Group that own interests of 10% or and revitalisation of water), energy (engineering more are Prilou, S.L., which controls 13.2%, Luis Rivero, projects, construction and management of biomass who controls an additional 13.1%, a syndicate of banks and cogeneration plants, energy efficiency, solar that controls 12.8% of the Group and Juan Abelló, who power, and promotion, construction and management controls 10% through three institutional investors. of wind farms) and miscellaneous services (integral building maintenance, motorway and dual carriageway Its portfolio is divided into Construction, Services and maintenance, service areas on motorways and dual rest of business. carriageways, healthcare services and integral hospital management). Construction The Sacyr Group carries out its construction activity in all Services sales amounted to €1,005 million in 2010, the areas of civil engineering and building. It is involved with EBITDA of €149 million. Water and Environmental in some of the worlds most important projects in terms services sales amounted to approximately €300 million of complexity, size and technical difficulty, such as the each, miscellaneous services sales were €226 million expansion of the Panama Canal and the construction of and Energy services sales reached approximately €179 the suspension bridge over the Strait of Messina. million. In connection with the type of works carried out by the Rest of business Group, it operates in the construction of roads, rails, The remaining revenues of the Group relate to hydraulics, airports, ports and urbanisation projects, residential development, rental property and high-speed railway lines, metros, airports, motorways, concessions. Sales for these activities were highways, etc., and has a major presence in both public approximately €1,000 million in 2010 with EBITDA of and private construction works. €251 million. Construction sales of the Group amounted to Within its concession business, the Group manages €2,819 million in 2010, with EBITDA of €171 million. 1,425 km of highways, hospitals, intermodal transfer Geographically, 55% of sales were obtained in Spain. facilities and motorway service areas in Spain, Italy, Portugal, Costa Rica, Chile and Ireland. Sacyr is also the main shareholder of the SpanishSacyr is the main shareholder of petrochemical company Repsol, with a 20% interest.Repsol, since it controls 20% of The Groups order book totalled €51,531 million at December 2010. The concession division representsthe Spanish petrochemical group 57.5% of the total order book, the services division represents 23.3% (30% abroad), and construction represents 14% (72% abroad). The international order book represents 58% of the Group’s total order book.54
  • 55. Sales by geographical areaKey Data (December 2010) Millions of euros 30 122Assets 164 331Non-current assets 14,677Current assets 6,436Total assets 21,113 847Liabilities and equityEquity 3,791Non-current liabilities 5,623 3,326Current liabilities 11,699Total liabilities and equity 21,113 Spain AfricaIncome statement Rest of Europe Australia America Other countriesSales 4,820 Domestic sales 3,326 Sales by segment International sales 1,494 746 Construction sales 2,819 Non-construction sales 2,001 250EBITDA 572EBIT 394 2,819Net profit 211 1,005Net profit attributable to the 204GroupOther Key DataNet debt 10,995 Construction Rental PropertiesOrder book 51,531 Services Other activitiesMarket capitalisation 3,530 EPoC 2010 European powers of construction 55
  • 56. Peab Peab was set up in 1959 by two brothers, Erik and Mats Civil Engineering Paulsson, who were then aged 16 and 14, respectively. The Civil Engineering business division obtained sales of Fifty years later, the Group has sales of over €4,000 over €1,000 million in 2010. These sales were obtained million per year, EBITDA of €234 million in 2010 and basically in Sweden. 95% of overall sales related to almost 14,000 employees. roads and civil engineering works and 66% were contracted by public clients. The main shareholders of the Group are the Paulsson family, which controls 30% of the share capital and 60% Other Activities of the voting rights of the Group. Industry is the main business line in the Other Activities division, obtaining an operating margin of 6%. Peab classifies its activities into three business areas: Construction, Civil Engineering and Other Activities. The Group´s order book reached €2,838 million at December 2010, 71% of which will be executed in 2012 Construction and 29% after 2012. By segment, the construction order The Construction business division is present in Sweden, book represents 68% of the total and civil engineering Norway and Finland. 32%. The Swedish order book is 88% of the total. Construction sales amounted to approximately €2,500 million in 2010, with a margin of 3.6%. Housing represented 42% of total sales, the rest being other building construction sales. Peab AB is the largest construction company in Sweden and increased its sales by 9% in comparison to 200956
  • 57. Key Data (December 2010) Millions of euros Sales by geographical areaAssets 266 303Non-current assets 1,077Current assets 1,998Total assets 3,075Liabilities and equityEquity 855Non-current liabilities 676Current liabilities 1,544 3,435Total liabilities and equity 3,075 SwedenIncome statement Norway FinlandSales 4,004 Domestic sales 3,435 Sales by segment International sales 569 565 Construction sales 3,439 Non-construction sales 565EBITDA 234EBIT 158 1,006Net profit 125 2,433Net profit attributable to the 124GroupOther Key DataNet debt 600 ConstructionOrder book 2,838 Civil Engineering Other activitiesMarket capitalisation 1,791 EPoC 2010 European powers of construction 57
  • 58. YIT Building and Industrial ServicesThe operating margin from The Building division executes works in areas such as heating, plumbing, air conditioning, electric systems,YITs construction sales reached security, fire safety or telecommunications systems.5.8% in 2010, ranking the The Industrial Services division executes works in areas such as piping, tanks, boilers, electrical, automation orFinnish group second among the ventilation systems.EPoC 2010. The Group also executes projects that aim to analyse and improve the energy efficiency of buildings. Sales of this segment amounted to €2,282 million in 2010 and were obtained in all the countries in which the Group is present. Operating profit amounted to YIT’s roots date back to 1912, when Yleinen €105 million. Insinööritoimisto went into business in Finland. In 2010, Group revenue amounted to €3,788 million, with Construction Services Finland operating profit of €221 million. The Group employs This segment includes works in residential construction some 26,000 people and has a presence in the Nordic and infrastructure construction with total sales of countries, Russia, the Baltic countries and Central €1,100 million in 2010 and an operating profit of €108 Europe. million. Two institutional investors hold interests of 5% or International Construction Services more. Structor, S.A. controls 10.5% of the Group and Sales of this segment totalled €464 million in 2010, with Varma Mutual Pension Insurance Company controls an an operating profit of €35 million. additional 5.4%. The Groups order book totalled €3,536 million, the The YIT Groups operations are divided into three highlights being the building and industrial services business segments: Building and Industrial Services, order book (€1,264 million), the construction order Construction Services Finland and International book (€1,173 million) and the international construction Construction Services. services order book (€871 million).58
  • 59. Key Data (December 2010) Millions of euros Sales by geographical areaAssets 238Non-current assets 575 513 1,444Current assets 2,542Total assets 3,117Liabilities and equity 550Equity 883Non-current liabilities 668 467Current liabilities 1,566 576Total liabilities and equity 3,117 Finland Central EuropeIncome statement Sweden Russia Norway Other countriesSales 3,788 Domestic sales 1,444 International sales 2,344 Sales by segment Construction sales 3,788 (58) 464 Non-construction sales -EBITDA 256EBIT 221 1,100Net profit 169 2,282Net profit attributable to the 168GroupOther Key DataNet debt 641Order book 3,536 Building and Industrial International Construction Services ServicesMarket capitalisation 2,500 Construction Finland Other activities EPoC 2010 European powers of construction 59
  • 60. Enka Enka’s history began in 1957 with the partnership Energy between Şarık Tara and Sadi Gülçelik. In 2010, with Enkas participation in energy projects dates back to the sales of over €3,500 million and EBIT of €505 million, thermal power plants in Tunçbilek, Yatağan, Yeniköy Enka is the main Turkish constructor. and Kemerköy during the 1970s. Since then, ENKA has become the sole owner of the Gebze, Adapazarı and The Group’s main shareholders are Tara Holding, A.S., İzmir Natural Gas Fired Combined Cycle Power Plants which controls 49% of the Group shares, the Tara and and the largest electricity producer of the private sector Gülçelik families, which control 28%, Enka Spor Egitim in Turkey, delivering approximately 30 billion kWh per Ve Sosyal Yardim Vakft, which controls 6%, Alternatif annum. Aksesuar Sanayi Ve Ticaret Ltd. STI, which controls 4%, and 13% of publicly traded shares. Energy sales of the Group amounted to €2,025 million in 2010, with a profit from operations of €167 million. Enka’s portfolio is divided into four segments: Energy, Engineering & Construction, Real Estate, and Trade & Real Estate Manufacturing. Rental sales amounted to €280 million in 2010, with a profit from operations of €189 million. Engineering & Construction In construction, Enka executes works such as the Trade & Manufacturing recently launched Rreshen-Kalimask Motorway in Trade and Manufacturing sales amounted to €392 Albania, the Shakhtar Donetsk Stadium in Donetsk million in 2010, with a profit from operations of €20 (Ukraine), the Toyota Car and Assembly Plant in Saint. million. Petersburg (Russia) and the Blue City New Town Project in Oman. The order book at December 2010 amounted to approximately €5,280 million. Construction sales of the Group amounted to €858 million in 2010, with a profit from operations of €129 million. Enka is the EPoC 2010 with the highest margins on construction activity and the fourth European construction company in terms of market capitalisation60
  • 61. Key Data (December 2010) Millions of euros Sales by geographical area 136 48AssetsNon-current assets 1,791 828Current assets 3,518Total assets 5,309Liabilities and equityEquity 3,294Non-current liabilities 1,193 2,543Current liabilities 822Total liabilities and equity 5,309 Turkey Rest of EuropeIncome statement Russia and Kazakhstan Africa and AsiaSales 3,555 Domestic sales 2,543 Sales by segment International sales 1,012 280 Construction sales 858 392 Non-construction sales 2,697 2,025EBITDA 584EBIT 505Net profit 422Net profit attributable to the 412Group 858Other Key DataNet debt (2) Energy Trade and manufacturingOrder book 5,280 Construction RentalMarket capitalisation 7,122 EPoC 2010 European powers of construction 61
  • 62. European constructionand infrastructure groupcontactsRegion Name Telephone EmailAustria Marieluise Krimmel +43 (1) 537 00 2412 mkrimmel@deloitte.at Bruno Moritz +43 (1) 537 00 4300 bmoritz@deloitte.at Nikolaus Mueller +43 (1) 537 00 7575 nmueller@deloitte.atBelgium Jean-Paul Loozen +32 (2) 639 49 40 jloozen@deloitte.com Pierre-Hugues Bonnefoy +32 (2) 800 20 35 pbonnefoy@deloitte.com Rick Neckebroeck +32 (2) 800 20 22 rneckebroeck@deloitte.com Luc Van Coppenolle +32 (3) 800 89 05 lvancoppenolle@deloitte.comCentral Europe Petr Kymlicka +420 (246) 042 480 pkymlicka@deloitte.comDenmark Lars Andersen +45 (36) 10 25 30 larshandersen@deloitte.dk Lars Kronow +45 (36) 10 27 86 lkronow@deloitte.dkFrance Marc de Villartay +33 (1) 5561 2716 mdevillartay@deloitte.frGermany Franz Klinger +49 (89) 29036 8362 fklinger@deloitte.de Michael Mueller +49 (89) 29036 8428 mmueller@deloitte.deGreece Alexis Damalas +30 (210) 678 1100 adamalas@deloitte.gr Michael Hadjipavlou +30 (210) 678 1100 mhadjipavlou@deloitte.grIreland Michael Flynn +353 (1) 417 2515 mflynn@deloitte.ie Kevin Sheehan +353 (1) 417 2218 kesheehan@deloitte.ie Padraic Whelan +353 (1) 417 2848 pwhelan@deloitte.ieItaly Elena Vistarini +39 (02) 833 25122 evistarini@deloitte.it Andrea Restelli +39 (02) 833 22062 arestelli@deloitte.itLuxembourg Benjamin Lam +(352) 451 452 429 blam@deloitte.luThe Netherlands Paul Meulenberg +31 (20) 582 5060 pmeulenberg@deloitte.nl Marcel Noordhuis +31 (61) 234 4631 mnoordhuis@deloitte.nl Feike Oosterhof +31 (61) 234 4617 foosterhof@deloitte.nlNorway Frode Lid +47 (23) 279 676 flid@deloitte.no Aase-Aamdal Lundgaard +47 (23) 279 282 alundgaard@deloitte.no Thorvald Nyquist +47 (23) 279 663 tnyquist@deloitte.noPortugal Joao Costa da Silva +351 (21) 042 7511 joaolsilva@deloitte.pt Miguel Eiras Antunes +351 (21) 042 3825 meantunes@deloitte.pt Miguel Heredia +351 (21) 042 3047 mheredia@deloitte.ptSpain Javier Parada +34 (91) 514 5000 japarada@deloitte.es Miguel Laserna +34 (91) 514 5000 mlaserna@deloitte.esSweden Andreas Adolphsson +46 752 462 21 03 aadolphsson@deloitte.seTurkey Cem Sezgin +90 (212) 366 6036 csezgin@deloitte.comUK Makhan Chahan +44 (0) 20 7007 0626 mchahal@deloitte.co.uk Jack Kelly +44 (0) 20 7007 0826 jackkelly@deloitte.co.uk Nigel Shilton +44 (0) 20 7007 7934 nshilton@deloitte.co.uk Chris Watts +44 (0) 20 7007 7939 chrisjwatts@deloitte.co.uk62
  • 63. For more information, please, visit www.deloitte.esDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of memberfirms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legalstructure of Deloitte Touche Tohmatsu Limited and its member firms.Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globallyconnected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and deep local expertise to helpclients succeed wherever they operate. Deloittes approximately 170,000 professionals are committed to becoming the standard of excellenceThis publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, Deloitte Global Services Limited, DeloitteGlobal Services Holdings Limited, the Deloitte Touche Tohmatsu Verein, any of their member firms, or any of the foregoing’s affiliates(collectively the “Deloitte Network”) are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, orother professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as abasis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affectyour finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible forany loss whatsoever sustained by any person who relies on this publication.© 2011 Deloitte, S.L.Designed and produced by CIBS, Communications, Corporate Image and Business Support, Madrid.