Slide 1: 2008 Half-Year Results
2008 Half-Year Results 13 August 2008
Slide 2: Duncan Magrath
Duncan Magrath Balfour Beatty
Slide 3: Headline numbers
Headline numbers First half First half 2008 2007 Revenue £4,332m £3,375m +28% Pre-tax profit* £95m £76m +25% Adjusted eps* 16.2p 14.2p +14% Interim dividend 5.1p 4.6p +11% Cash generated from operations £73m £181m Net cash (excluding 100% PPP) £333m £479m Order book £12.1bn £10.6bn +14% * before exc
Slide 4: Building, Building Management and Services
Building, Building Management and Services Full year First half First half 2007 2008 2007 £6.1bn Order book £6.4bn £5.1bn £3,640m Revenue £2,151m £1,563m £75m Profit £39m £30m • Good progress in UK building construction, facilities management and US programme management • Acquisition of Cowlin exten
Slide 5: Building, Building Management and Services
Building, Building Management and Services Programme & Facilities Management £381m (57% growth) Building Services Building Construction £266m £1,504m (9% growth) (40% growth) Revenue £2,151m (+38%) (June 2007: £1,563m)
Slide 6: Building, Building Management and Services
Building, Building Management and Services £5bn Revenue Order book £4bn £3bn £2bn £1bn £0bn 2007 2008 2009 2010+
Slide 7: Civil and Specialist Engineering and Services
Civil and Specialist Engineering and Services Full year First half First half 2007 2008 2007 £4.4bn Order book £4.7bn £4.65bn £2,668m Revenue £1,563m £1,286m £86m Profit £44m £26m • Preferred bidder for M25 PPP • Good progress in Dubai and Gammon • Utility Solutions reorganised to include Power Netw
Slide 8: Civil and Specialist Engineering and Services
Civil and Specialist Engineering and Services UK Utilities & Services £526m UK Civil Engineering (6% growth) £622m (38% growth) International £415m (22% growth) Revenue £1,563m (+22%) (June 2007: £1,286m)
Slide 9: Civil and Specialist Engineering and Services
Civil and Specialist Engineering and Services £4bn Revenue Order book £3bn £2bn £1bn £0bn 2007 2008 2009 2010+
Slide 10: Rail Engineering and Services
Rail Engineering and Services Full year First half First half 2007 2008 2007 £0.9bn Order book £1.0bn £0.85bn £785m Revenue £398m £344m £44m Profit £10m £13m • Good progress on overground and underground renewals • Steady performances in Europe and North America • £11bn UK network capacity enhanceme
Slide 11: Rail Engineering and Services
Rail Engineering and Services Other £178m (10% growth) UK £220m (21% growth) Revenue £398m (+16%) (June 2007: £344m)
Slide 12: Rail Engineering and Services
Rail Engineering and Services £1.0bn Revenue Order book £0.8bn £0.6bn £0.4bn £0.2bn £0.0bn 2007 2008 2009 2010+
Slide 13: Investments
Investments First half 2008 First half 2007 Full year Infrast- Infrast- Infrast- Infrast- 2007 £m PPP ructure Total PPP ructure Total 41 BB Capital - JVs & associates 16 8 24 15 12 27 (25) BB Capital - other (13) (10) - BB Communities 3 - 16 Investments operating profit * 14 17 11 Subordinated debt
Slide 14: Investments
Investments • BB Communities (GMH Military Housing) acquired • Financial close for AMC West in July and West Point in August • Blackpool Airport acquired • Financial close for Islington Schools Phase 1 in July, ITE Singapore in August • Appointed preferred bidder for M25 project • Progress on prefer
Slide 15: Performance by sector
Performance by sector Full year First half First half 2007 £m 2008 2007 75 Building, Building Management and Services 39 30 86 Civil and Specialist Engineering and Services 44 26 44 Rail Engineering and Services 10 13 16 Investments 14 17 (30) Corporate costs (16) (13) 191 Profit from operations* 91
Slide 16: Operating profit v operating cash flow
Operating profit v operating cash flow First half Second half First half £m 2008 2007 2007 Group operating profit* 55 87 39 Depreciation 31 29 21 Exceptional cash items (3) (2) (37) Other items - 3 - Pension deficit payments (24) (5) (5) Working capital decrease/(increase) 14 (12) 163 Cash generated
Slide 17: Balance sheet cash movement
Balance sheet cash movement First half Second half First half £m 2008 2007 2007 Opening net cash† 374 479 305 Cash generated from operations 66 102 181 Dividends from JVs and associates 43 7 76 Capital expenditure and financial investment (39) (67) (65) Acquisitions and disposals (272) (103) (3) Sha
Slide 18: Acquisitions
Acquisitions £m Balfour Beatty Communities # 30 April 179 Dean & Dyball * 18 March 40 Barnhart * 4 June 33 Blackpool International Airport 5 May 15 Fort Leonard PPP 26 June 2 Deferred consideration 3 272 # formerly GMH Military Housing * after adjusting for cash balances
Slide 19: Cash balances
Cash balances First half Second half First half £m 2008 2007 2007 Period-end net cash 333 374 479 Monthly average net cash 223 312 249
Slide 20: Exceptional items
Exceptional items £m Profit from operations: Pension gain 60 Acquisition integration, reorganisation & other costs (3) 57 Tax on items above (16) Net exceptional post-tax credit 41* * before amortisation
Slide 21: Pensions
Pensions Full year First half First half £m 2007 2008 2007 Defined benefit schemes: 41 P&L charge 20 19 44 Employer cash contributions 42 21 286 Balance sheet liability (gross) 309 160 213 Balance sheet liability (net of deferred tax) 230 126 Defined contribution schemes: 17 P&L charge and contribut
Slide 22: Half-year pension deficit movement
Half-year pension deficit movement +105 +20 -60 -42 286 309 December Current Company Actuarial Liability June 2007 service cost contributions losses (net) mitigation 2008
Slide 23: Group balance sheet
Group balance sheet June Dec June £m 2008 2007 2007 Goodwill and intangible assets 989 753 647 Net cash (excluding PPP) 333 374 479 Preference shares – liability (87) (87) (88) Retirement benefit obligations (309) (286) (160) PPP subsidiaries 4 (3) 3 Non-current assets + working capital 95 58 30 Non
Slide 24: Future tax & accounting changes
Future tax & accounting changes • IFRIC 12 Service Concession Arrangements • Withdrawal of Industrial Buildings Allowances • IAS 34 - effective tax rate
Slide 25: Summary
Summary • Continuing growth in profits • Strong cash flow • Strong cash position to support future growth
Slide 26: Ian Tyler
Balfour Beatty
Slide 27: Our markets
Our markets • Developers • Public and regulated • Availability of finance
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Balfour Beatty
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Balfour Beatty
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Slide 46: Balfour Beatty
Balfour Beatty
Slide 47: Incremental Growth Strategy
Incremental Growth Strategy • UK Regional Contracting – Dean & Dyball acquired • Professional services – 2000 UK/US professionals employed • Infrastructure Investment – Balfour Beatty Communities, Singapore ITE, Blackpool Airport • International expansion – Balfour Beatty Communities, Barnhart, Duba
Slide 48: Balfour Beatty
Balfour Beatty