Fomento de Construcciones y Contratas, S.A. · BME:FCC
Fomento de Construcciones y Contratas — FCC Group — Non-Deal Roadshow (April 2005)
44 slides from Fomento de Construcciones y Contratas's roadshow presentation, April 2005
Slide 1: FCC Group Analyst Presentation
FCC Group Analyst Presentation April 2005
Slide 2: Agenda
I. FCC Group Description II. Financial Highlights III. Business Areas IV. Share Evolution and Dividends V. FCC Present and Future
Slide 3: Agenda
I. FCC Group Description II. Financial Highlights III. Business Areas IV. Share Evolution and Dividends V. FCC Present and Future
Slide 4: FCC Group - Description (year 2004)
FCC Group - Description (year 2004) FCC is one of the largest Service and Construction Groups in Spain • € 4.626 MM Market capitalization • € 6.286 MM Sales • € 388 MM Net Income • € 715 MM Cash Flow • € 16.405 MM Backlog • 63.600 employees 4
Slide 5: FCC Group Shareholder Structure
FCC Group - Description FCC Group Shareholder Structure E. KOPLOWITZ Financial Investors 73% B 1998, S.L. 27% 52,48% ACCIONA FREE FLOAT 15,05% 32,47% 5
Slide 6: Organisational Structure
Organisational Structure 100% 100% 58,8% Services Business Servicios Entorno Construcción Construction Cemento Cement Real Estate Públicos Urbano Areas Environmental Versia (1) Consolidation Services through Equity 80% 50% Method Strategic Areas Torre Non-Core Assets Picasso Realia (1) 2004 SALES BR
Slide 7: Key Strengths
Key Strengths 9Leading position in key nº 1 Services in Spain nº 2 Cement in Spain (nº 1 with Spanish capital) strategic areas nº 3 Construction in Spain 9Highest exposure to 37% of consolidated Revenues Services within the sector 44% of consolidated EBITDA ~ 55% of revenues from public entities 9Hi
Slide 8: Agenda
I. FCC Group Description II. Financial Highlights III. Business Areas IV. Share Evolution and Dividends V. FCC Present and Future
Slide 9: Strong 2004 Results
Strong 2004 Results (€ MM) 2004 2003 % Change Sales 6.285,9 6.050,5 +3,9% EBITDA 851,3 804,1 +5,9% Margin % 13,5% 13,3% EBIT 543,6 519,0 +4,7% Margin % 8,6% 8,6% Net Income 388,3 308,6 ++25,8% 25,8 % Cash Flow (1) 715,1 707,7 +1,0% Note: (1) Defined as Ordinary Net Income plus Depreciation & Amortiz
Slide 10: Growth in All Key Strategic Areas
Growth in All Key Strategic Areas 2004 % Change EBITDA % Change (€ MM) Revenues 2004 Construction 3.090,2 +4,7% 159,0 + 13,6% +13,6% Services 2.333,7 ++11,7% 11,7% 377,2 ++12,4% 12,4% Cement 881,5 +1,8% 265,0 (4,1%) 10
Slide 11: Growth and Diversification Track Record
Growth and Diversification Track Record REVENUE GROWTH / INTERNATIONALISATION DIVERSIFICATION OF REVENUES 1, 3% =1 6.286 6.050 8 – 04 GR9 5.497 C A 5.173 v enue 56% 46% Re Construction 4.468 3.829 3.303 3% Services 30% Services 37% Others: 4% Cement 10% 14% 1998 1999 2000 2001 2002 2003 2004 1998 20
Slide 12: Agenda
I. FCC Group Description II. Financial Highlights III. Business Areas IV. Share Evolution and Dividends V. FCC Present and Future
Slide 13: III. Business Areas: Services, Environmental Services
III. Business Areas Services Environmental Services
Slide 14: Environmental Services Activity and Geographic Breakdown
Environmental Services Activity and Geographic Area Breakdown Environmental Services (€ 1.088,6 MM) 2004 Revenue Breakdown (€1.819,2 MM) – Solid urban waste collection, treatment and disposal – Street cleaning 9% – Parks and garden maintenance International Water Management (€ 460,8 MM) – Full manag
Slide 15: Environmental Services Key Financial Figures
Environmental Services Key Financial Figures (€ MM) EBITDA REVENUES CAGR 00-04: 9% CAGR 00-04: 6,5% International National 285 1.819 255 1.709 230 240 1.579 1.606 202 1.415 15,7% 14,9% 78% 14,9% 85% 90% 91% 14,5% 78% 14,3% 22% 22% 15% 10% 9% 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 2004 NET
Slide 16: Services: Versia
Services Versia Versia
Slide 17: Versia Activity and Geographic Breakdown
Versia Activity and Geographic Area Breakdown Handling (€ 153 MM) 2004 Revenue Breakdown (€514 MM) Airport passenger and cargo ground services Logístics (€ 109 MM) 29% 30% International Site Furniture and advertising (€ 80,9 MM) Design, manufacture, installation and maintenance of all kinds of site
Slide 18: Versia Key Financial Figures
Versia Key Financial Figures (€ MM) EBITDA REVENUES CAGR 00-04: 13,2% CAGR 00-04: 24,5% National 92 International 515 81 72 62 381 29% 56 305 250 35% 214 71% 26% 24,8% 23,7% 21,2% 17,8% 79% 65% 84% 83% 2000 2001 2002 2003 2004 17% 16% 21% 2000 2001 2002 2003 2004 2004 EBITDA : € 91,8 MM +13,8% 2004
Slide 19: Construction
Construction
Slide 20: Construction Positioning
Construction 2004 SALES Positioning • One of the leading companies in Spain 17% 27% 56% – Mainly domestic (96% of sales) – Focused on Civil Works (57% of sales and 65% of backlog) • International activity mainly in Portugal and Central America 2004 BACKLOG DISTRIBUTION • Clear presence in infrastruc
Slide 21: Construction Key Financial Figures
Construction Key Financial Figures (€ MM) REVENUES EBITDA International CAGR 00-04: 10,7% CAGR 00-04: 13,7% National 159 140 2.950 3.090 124 114 2.613 95 2.396 2.055 5,1% 97% 96% 92% 94% 93% 4,8% 4,7% 4,7% 4,6% 8% 6% 7% 3% 4% 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Record Backlog of €4.351
Slide 22: Cement
Cement
Slide 23: Cement
Cement CEMENTOS PORTLAND VALDERRIVAS is present in two markets: • SPAIN – Market with the highest cement consumption per capita in the world • US – Third in the world market in total cement consumption SPAIN US Cementos Portland Giant Cement • no 2 In Spain, with a 17% market • 100% US subsidiary of
Slide 24: Cement Key Financial Figures
Cement Key Financial Figures (€ MM) REVENUES EBITDA National CAGR 00-04: 7% CAGR 00-04: 3% International 866 882 272 276 265 831 255 792 234 673 78% 76% 71% 71% 66% 32,7% 31,9% 29% 34% 29% 24% 22% 34,7% 32,2% 30,1% 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 • International decrease due to the
Slide 25: Other Assets
Other Assets
Slide 26: Realia
Realia •4th Largest Real Estate company in Spain in terms of assets– NAV € 1.500 MM •Latent Capital gains for FCC - € 500 MM •Owned by Caja Madrid and FCC with 50% each and consolidated through the Equity Method •100% domestic with new operations in Portugal and Poland •Sales Distribution: - Rentals
Slide 27: Realia Revenues and EBITDA
Realia REVENUES EBITDA CAGR 00-04: 22% CAGR 00-04: 28% 194 141 114 34% 575 470 86 30% 410 72 262 306 28% 28% 27% 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 2004 Net Revenues: +22% 2004 EBITDA: +37% 27
Slide 28: Agenda
FCC Group Description II. Financial Highlights III. Business Areas IV. Share Evolution and Dividends V. FCC Present and Future
Slide 29: Share Evolution
Share Evolution 2002-2004 FCC SHARE EVOLUTION IN THE IBEX35 90,0% 80,0% 70,0% FCC FCC has consistently 60,0% beaten the IBEX index 50,0% 40,0% during the last three 30,0% years and has 20,0% IBEX 10,0% accumulated a 95% 0,0% earning for the -10,0% shareholders 12-02 1-03 2-03 3-03 4-03 5-03 6-03 7-0
Slide 30: Dividends
Dividends PAID DIVIDEND €/ PAYOUT % In the last four years: + 94% • FCC’s dividend has been multiplied by 3,6 times 1,067 • Payout has increased 2,3 times and is near 50% of the ordinary income 0,524 0,551 net of taxes 0,469 0,290 45,1% • During the year 2004 the dividend 26,1% 26,1% 26,3% paid has
Slide 31: Agenda
I. FCC Group Description II. Financial Highlights III. Business Areas IV. Share Evolution and Dividends V. FCC Present and Future
Slide 32: Strategic Vision
Strategic Vision Consolidate our leading position and boost growth and profitability in three key strategic areas… Services Construction Cement …by combining organic growth with acquisitions both domestically and abroad 32
Slide 33: Present
Present  FCC’s expansion in the last years has been supported mainly by the organic growth  Its shareholder structure has made it difficult to carry out an active acquisition policy.  This situation has been solved after Veolia’s exit and with the incorporation of new financial partners.  A new
Slide 34: Present
Present At the moment FCC is in a unique situation to reach these goals, with: Ö A leading position and a proved management capability in FCC’s strategic areas. Ö A debt capacity that allows the Group to invest over €3.000 MM. Ö A strong commitment and a full support from our main partners. 34
Slide 35: Organic Growth
Organic Growth
Slide 36: Growth Factors: Services - Environment Services
Growth Factors Services – Environment Services • Urban center expansion Environment Services • Demand of higher added value services • Privatisations • Market Privatisations • Urban center expansion Water • New Business Areas (Industrial Water, Seawater treatment, Irrigation Plan) • Application of t
Slide 37: Growth Factors: Services - Versia
Growth Factors Services – Versia • International organic growth due to Site furniture and advertising tenders that will take place in New York, London, etc. • Growth due to license renovation in 40 Spanish airports Handling • International expansion due to new tenders • Organic market growth in line
Slide 38: Growth Factors: Services - Versia
Growth Factors Services – Versia • Organic growth due to concession renewals MOT Testing • Diversification towards certification activities • International expansion in countries such as Brazil • Take part in the new market for cargo transportation on trains Transport • New opportunities in urban tr
Slide 39: Growth Factors: Construction and Cement
Growth Factors Construction • To take advantage of the Spanish Plan on the Transport Infrastructure (PEIT) • International expansion in the geographical areas with a strong growth potential Cement • To recover the North American market • Full productivity of the US facilities 39
Slide 40: 2005 Forecast
2005 Forecast Net revenues EBITDA GROUP +4%-6% 8%-10% CONSTRUCTION 2%-3% 2%-3% SERVICES 5%-6% 13%-14% VERSIA 25%-30% 13%-15% CEMENT 2%-3% 6%-8% 40
Slide 41: FCC a growing company: Corporate Acquisitions
FCC a growing company Corporate Acquisitions
Slide 42: FCC: Growth Objectives
FCC : Growth Objectives  After a period of 6 years where FCC’s expansion has been mainly based on internal growth, there is a strong commitment today to boost the company through an active acquisition policy.  This policy will be focused exclusively on acquisitions in the strategic areas, continui
Slide 43: FCC: Growth Objectives
FCC : Growth Objectives This active corporate acquisition policy will allow FCC to reach the following objectives: OPERATIONAL OBJECTIVES Ö Double the actual Net Revenues in the next three years which would result in a volume of sales between 10.000 and 12.000 MM Euros Ö Increase our international p
Slide 44: a growing Company
a growing Company