Fomento De Construcciones Y Contratas, S.a. · BME:FCC
Fomento De Construcciones Y Contratas — FCC Group — Non-Deal Roadshow (March 2004)
39 slides from Fomento De Construcciones Y Contratas's roadshow presentation, Mar 4, 2004
Slide 1: FCC Group London March 4, 2004
FCC Group London March 4. 2004
Slide 2: Agenda
I. FCC Group “Today” II. Financial Highlights III. Positioning by Business Area IV. Conclusions
Slide 3: Agenda
I. FCC Group “Today” II. Financial Highlights III. Positioning by Business Area IV. Conclusions
Slide 4: The FCC Group
The FCC Group The FCC Group is one of the largest construction and services groups in Spain • €3.9 Bn market cap • €6.05 Bn sales • Mainly domestic (89,5% of sales) • 61,000 employees 4
Slide 5: Strategic Vision
Strategic Vision Consolidate leadership position and fuel growth and profitability in three key Strategic Areas Public Construction Cement Services 5
Slide 6: Organisational Structure
Organisational Structure 100% 100% 58.8% 99.9% Business Services Construction Cement Real Estate Grucycsa Areas Public Services Versia 80% 50% Torre Core Businesses Realia(1) Picasso 03 Revenues Breakdown 33.9% 47.9% 14.0% 0.3%(3) 3.9% 03 EBITDA Breakdown(2) 43.2% 18.0% 35.5% 1.8%(3) 2.0% Notes: (1)
Slide 7: Key Strengths
Key Strengths • Leadership position in – No.1 services company in Spain key strategic areas – No.2 cement company in Spain – No.3 construction company in Spain • Highest exposure to – 34% of consolidated Revenues services among peers – 43% of consolidated EBITDA • Strong earnings visibility – ~55% o
Slide 8: Agenda
I. FCC Group “Today” II. Financial Highlights III. Positioning by Business Area IV. The “Future” V. Conclusions
Slide 9: Strong 2003 Results
Strong 2003 Results (€ MM) 2002 2003 % Change Revenues 5,497.2 6,050.5 +10.1% EBITDA 741.3 804.1 +8.5% % Margin 13.5% 13.3% EBIT 498.1 519.0 +4.2% % Margin 9.1% 8.6% Ordinary Income 469.3 521.1 +11.0% % Margin 8.5% 8.6% Net Income 273.0 308.6 +13.0% Cash Flow(1) 577.6 707.7 +22.5% Note: (1) Defined
Slide 10: Growth Across All Key Strategic Areas
Growth Across All Key Strategic Areas 2003 2003 (€ MM) Revenues % Change EBITDA % Change Construction 2,950.1 +12.19 140.0 +13.3% Public 1,708.9 +6.4% 255.0 +6.3% Services Urban Services 381.0 +24.8% 80.6 +11.6% Cement 865.6 +4.1% 276.2 +1.5% Grucycsa 241.5 +10.4% 11.9 19.0% Torre Picasso 16.5 +2.4%
Slide 11: Consistently Strong Track Record
Consistently Strong Track Record Revenue Growth Diversification of Revenues % 12.9 03 = 8- 6.050 G R9 CA 5.497 ve nue 5.173 Re Construction 48% 56% 4.468 3.829 3.303 Public 34% 30% Services Cement 14% 10% 4% Other 4% 1998 1999 2000 2001 2002 2003 1998 2003 9.5% International Sales 10.5% Revenues 200
Slide 12: Agenda
I. FCC Group “Today” II. Financial Highlights III. Positioning by Business Area IV. Conclusions
Slide 13: SERVICES: Public Services
SERVICES: Public Services
Slide 14: Public Services
Public Services Breakdown by Type of Activity and Region 2003 Revenue Breakdown (€1,708.9 MM) 9,6 Environmental Services (€1,036.6 MM) International – Solid urban waste collection, treatment and disposal – Street cleaning – Maintenance of parks and gardens 60,7 Water Management (€425.6 MM) – Full ma
Slide 15: Public Services Key Financials
Public Services Key Financials (€ MM) Revenues EBITDA CAGR 00-03: 6.5% CAGR 00-03: 8.1% International National 255 240 1.709 230 1.579 1.606 1.415 202 14,9% 14,9% 14,3% 14,5% 1.226 1.358 1.545 1.101 314 353 248 164 2000 2001 2002 2003 2000 2001 2002 2003 Revenues 2003: €1.709 MM +6.4% EBITDA 2003: €
Slide 16: Environmental Services
Environmental Services Positioning Revenues (€ MM) / EBITDA Margin • No.1 company in Spain CAGR 00-03: 10.6% 1.037 904 (approx. 50% market share 766 823 of privatised market) 14,0% 14,4% 14,0% 13,6% – 21 MM equivalent population covered • Present in almost all Spanish 2000 2001 2002 2003 cities abov
Slide 17: Water Management
Water Management Positioning Revenues (€ MM) / EBITDA Margin • No.2 company in Spain CAGR 00-03: 12.6% 426 (approx. 30% market share 349 384 of privatised market) 298 18,6% 19,6% 19,1% 17,5% – Water treatment: 9MM equivalent population covered – Water distribution: 6 MM 2000 2001 2002 2003 equivalen
Slide 18: Industrial Waste
Industrial Waste Positioning Revenues (€ MM) / EBITDA Margin • One of Spain’s leading CAGR 00-03: 30.9% 83 companies in the fast growing 70 industrial waste segment 54 • Selective acquisition strategy in 37 a very fragmented market 15,6% 14,7% 14,3% 15,2% – Ekonor (October 2001), specialised in trea
Slide 19: International Services
International Services Revenues (€ MM) / EBITDA Margin Positioning • Latam activities (52% of sales) 353 held through Proactiva, a 50/50 314 J/V with Vivendi Environment 248 164 – 03 sales decrease (33.7%) 14,2% mainly explained by loss of 11,6% 11,1% 10,0% Puerto Rico contract (June 2002), as well
Slide 20: SERVICES: Urban Services
SERVICES: Urban Services
Slide 21: Urban Services
Urban Services Breakdown by Type of Activity and Region 2003 Revenue Breakdown (€381 MM) Urban Fixture (€83.0 MM sales) – Design, manufacture, installation and maintenance of all types of street furniture 21,8 Handling (€147.3 MM sales) 34,7 – Ground assistance at airports including International ai
Slide 22: Urban Services Key Financials
Urban Services Key Financials (€ MM) Revenues EBITDA International CAGR 00-03: 21.2% CAGR 00-03: 13.1% National 381 81 305 72 250 56 62 214 249 240 26,0% 159 210 24,8% 23,7% 21,2% 132 36 40 65 2000 2001 2002 2003 2000 2001 2002 2003 Revenues 2003: €381 MM +24.8% EBITDA 2003: €80,6 MM +11.6% Domestic
Slide 23: Urban Fixtures
Urban Fixtures Positioning Revenues (€ MM) / EBITDA Margin • No.1 in Spain (approx. 40% CAGR 00-03: 12.7% market share) 47 45 42 – Focused on the less 36 cyclical street furniture 34,8% 34,4% 31,0% segment 23 29 37 24,6% 38 • Very strong international 2000 2001 2002 2003 International National prese
Slide 24: Handling - Domestic activities (9 airports)
Handling Positioning Revenues (€ MM) / EBITDA Margin • No.2 largest operator in Spain CAGR 00-03: 50.7% 56 • Presence in a total of 10 airports - Domestic activities (9 airports) 46 52 currently managed through 37 30,2% 25,3% 21,7% 18,8% a 50/50 J/V with AirEuropa 6 4 22 91 – In October 2002, FCC 20
Slide 25: Urban Services – Other Activities
Urban Services – Other Activities Sewage Networks (€49 MM Sales) Car Parks (€48 MM Sales) – Historically first market player (provides – On-street parking in 35 cities (100,000 services in Madrid and Barcelona since spaces managed) 1942 and 1911 respectively) – 36 underground parkings, with – Manage
Slide 26: Construction
Construction
Slide 27: Plan Nacional de Infraestructura
“Plan Nacional de Infraestructura” Total Investment per Period Investment Breakdown (ex-Hydrological Plan) - € Bn (ex-Hydrological Plan) Other Seaports 4% 7% 43.0 42.6 Airports 11% Motorways 17.3 39% Railroads 2002-04 2005-06 2007-10 39% A €114 Bn Infrastructure Plan, to be funded by the Spanish Gov
Slide 28: Construction
Construction Positioning 2003 Backlog Breakdown • Leading construction 15% company in Spain in terms of revenues 25% 41% – Mostly domestic business 6% 13% (96% of revenues) – Clear focus on the public 2003 Revenues Breakdown sector (62% of revenues) – Clear focus on civil works 13% (61% of revenues)
Slide 29: Construction Key Financials
Construction Key Financials (€ MM) Revenues EBITDA CAGR 00-03: 12.8% CAGR 00-03: 13.8% International National 140 124 2.950 114 2.613 2.396 95 2.055 2.847 2.242 2.438 1.887 4,6% 4,8% 4,7% 4,7% 168 154 175 103 2000 2001 2002 2003 2000 2001 2002 2003 Revenues 2003: €2,950.1 MM +12.9% EBITDA 2003: €140
Slide 30: Cement
Cement
Slide 31: Cement
Cement Cementos Portland Giant Cement – CDN USA • No.2 Spanish cement company, • 100% US subsidiary of Cementos with 17% market share Portland since 2000 • Leadership in Northern and • No.15 US cement company Central Spain • Leadership (No.4) in East Coast • 6 fully owned plants, with 9.0 MM (Caroli
Slide 32: Cement Key Financials
Cement Key Financials (€ MM) Revenues EBITDA International CAGR 00-03: 8.8% CAGR 00-03: 5.7% National 272 276 255 831 866 234 792 673 521 593 661 478 34,7% 32,2% 32,7% 31,9% 195 271 238 205 2000 2001 2002 2003 2000 2001 2002 2003 Revenues 2003: €865.6 MM +4.1% EBITDA 2003: €276,2 MM +1.5% Domestic R
Slide 33: Torre Picasso
Torre Picasso
Slide 34: Torre Picasso
Torre Picasso • 80% owned by FCC, Torre Picasso is one of the most emblematic office buildings in Madrid Key 2003 Figures • Surface(m2) – Office 70,195 – Local 7,962 – Garage 832 Spaces • Occupancy ratio (%) 92.24% • Revenues (€ MM) 16.5 • EBITDA (€ MM) 14.4 34
Slide 35: Non-Core Assets
Non-Core Assets
Slide 36: Non-Core Assets - Realia
Non-Core Assets - Realia • Result of the merger between FCC’s and Caja Madrid’s real estate activities: 4th largest real estate company in terms of assets (€1.6 Bn) Key Figures (€ MM) 2002 2003 % Rentals 21% – Offices 74% – Commercial 26% • Sales 410 470 +14.6% • EBITDA 114 141 +23.9% • EBIT 105 121
Slide 37: Non-Core Assets - Grucycsa
Non-Core Assets - Grucycsa • FCC’s diversified investment holding • Revenues of €241 MM • Current key investments: % of Revenues – Logistics: Logística de Navarra 40% – Electrical systems: Espelsa 23% – Heating and air-conditioning: Tecair 17% – Industrial Equipment: SVAT 5% – Other 15% 37
Slide 38: Agenda
I. FCC Group “Today” II. Financial Highlights III. Positioning by Business Area IV. Conclusions
Slide 39: Key Highlights
Key Highlights Unique financial capability and know-how to continue growing in all key strategic areas • Leadership position in three key strategic areas: Services, Construction and Cement • High exposure to public services • Earnings visibility • Strong leverage capacity • Strong cash flow generati