Fomento De Construcciones Y Contratas, S.a. · BME:FCC
Fomento De Construcciones Y Contratas — FY2010 Earnings Presentation
36 slides from Fomento De Construcciones Y Contratas's earnings presentation, Mar 1, 2011
Slide 1: Citizen Services
Citizen Services Citizen Services Finance Area IR & Stock Exchange Department 1
Slide 2: 2010 Earnings
Citizen Services 2010 Earnings Finance Area 1 March 2011 IR & Stock Exchange Department 2
Slide 3: Disclaimer
Citizen Services Disclaimer This document has been drafted by Fomento de Construcciones y Contratas, S.A. (the “Company”) to be used solely in the presentation of 2010 earnings. No liability whatsoever is assumed by the Company, its advisors or representatives, whether for negligence or otherwis
Slide 4: Agenda
Citizen Services 1. Introduction - Mr Baldomero Falcones 2. 2010 Earnings - Mr Victor Pastor 3. Conclusion - Mr Baldomero Falcones Finance Area IR & Stock Exchange Department 4
Slide 5: Introduction
Citizen Services Introduction 1.1. Main developments in 2010 1.2. Key figures 1.3. Growth in utilities 1.4. Leadership in key markets 1.5. Expanding global presence 1.6. Operating efficiency 1.7. Revenues visibility 1.8. financial solvency 1.9. Commitment to shareholders Mr Baldomero Falcones Chairm
Slide 6: Main developments in 2010
Citizen Services Main developments in 2010 9 Increase in net attributable income: to €301.3 mn (+1.8%), even though the worst of the economic cycle adjustment occurred in the last two years (2009-2010). 9 Solid growth in utilities: Services and Energy, the most recurring areas, with strong long-term
Slide 7: Key figures
Citizen Services Key figures 2010 (€mn) Chg./2009 (%) Revenues 12,114.2 - 4.6% EBITDA 1,434.6 - 3.4% EBITDA margin 11.8% + 0.1 p.p. Net profit 301.3 + 1.8% 2010 (€mn) Chg./2009 (%) Backlog 35,309.0 + 2.2% Net debt 7,748.7 + 1.2% 7
Slide 8: Recurring: Utilities
Citizen Services + Recurring: Utilities EBITDA by business area in 2010 Services & Energy Energy 60% 4% Cement 15% Environ. Services 46% Infrastructure Infrastructure 40% Construction 25% Municipal Services 10% 11.3% growth in EBITDA in the most recurring activities—Environmental Services, Municip
Slide 9: Leadership in key markets
Citizen Services + Leadership in key markets Leading local companies and revenues in 2010 CO. SERVICES INFRASTRUCTURE > 76% > 90% In 2010, 85% of revenues came from markets where FCC is one of the top three local operators 9
Slide 10: International
Citizen Services + International International revenues in 2010 International Infrastructure Germany UK 46% 33% 13% 13% Western Austria Europe 29% 11% United Services States Eastern Domestic Europe 13% 5% 54% 20% Others 9% Increase in international backlog to €12.472 bn More than €4.5 bn in new
Slide 11: International
Citizen Services + International Important contracts and projects outside Spain St. Gotthard Tunnel in Switzerland Construction and management of a macro-desalination plant in Algeria. Singapore Metro Photo credit: LCR Crossrail tunnels in the UK Xicotepec Tunnel in Mexico Maintained leading local
Slide 12: Operating profitability
Citizen Services + Operating profitability Increased profitability and efficiency of operations 9 2010 Earnings ¾ Contained personnel costs at €3.3 bn, on par with 2009 ¾ Reduced structural and other indirect sales costs by €64 mn ¾ Created the centralised Procurement Department in February 2010 to
Slide 13: Revenues visibility
Citizen Services + Revenues visibility Recurrent 2010 Backlog 2010 Revenues Coverage €35.309 bn + 2.2% €12.114 bn 2.9x 2010 Revenues Environment :: Environment = 6.9x 2009 Revenues 72% 30% Infrastructure Infrastructure : = 1.5x 2010 Revenues 28% 55% + + + Energy Energy Regulated Tariff 1% High vis
Slide 14: Solvency
Citizen Services + Solvency Leverage 29% Equity 36% Without recourse Net debt1 = 3.62 71% Net debt EBITDA1 64% With recourse EBITDA1 = 6.84 Financial Expenses1 Debt structure Services and Energy Infrastructure 72% 23% Others 5% Refinanced the Group's largest loan (€1.287 bn) in 2010, with no major
Slide 15: Yield for the shareholder
Citizen Services + Yield for the shareholder Dividend yield1 Attractive valuation €2.905 bn €1.330 bn 7% Proactiva 6% GVI 5% 4% Realia Picasso €294 mn 2% €1.281 bn 1% 0% 2006 2007 2008 2009 2010 Net att. profit2 Pay-out: €304 mn P/E<4.5 50% 50% 59% 59% 59% 59% Market cap T. Stock (25/02/11) Market C
Slide 16: 2010 Earnings
Citizen Services 2010 Earnings 2.1 Revenues and EBITDA 2.2. Cash flow 2.3 Capital expenditure by area 2.4 Net debt by area 2.5 Debt structure and maturity 2.6 Breakdown of earnings by business area Mr Victor Pastor CFO 16
Slide 17: Revenues and EBITDA
Citizen Services Revenues and EBITDA 2010 EBITDA Chg./09 2010 Revenues Chg./09 (€mn) (%) (€mn) (%) Environment 657.7 + 7.8% 3,672.2 + 2.0% Construction 355.5 - 12.5% 6,693.6 - 7.0% Cement 219.7 - 24.0% 886.7 - 14.4% Versia 139.0 +86.3% 846.3 + 3.2% Energy 65.5 - 0.5% 86.3 + 5.4% Other (2.8) - 107.1%
Slide 18: Cash flow
Citizen Services Cash flow €1,501.5 mn €-447.9 mn €-42.5 mn €1,011.1 mn €-576.6 mn €-286.2 mn €148.3 mn Funds from operations Change in Others Operating Investing cash flow Interest Free cash flow working capital (Taxes…) cash flow and others Construction - 362.3 Services -155.2 + 69.6 Other 18
Slide 19: Capex by area
Citizen Services Capex by area Net cap expen Investments Divestments 2010 (€mn) (€mn) (€mn) Environment - 356.2 - 403.7 + 47.5 Construction - 288.5 - 358.9 + 70.4 Cement - 13.1 - 34.4 + 21.3 Versia + 140.1 - 111.1 + 251.3 Energy - 50.8 - 51.0 + 0.2 Other -8.1 +25.4 - 33.6 Total - 576.6 - 933.7 + 357
Slide 20: Net debt by area
Citizen Services Net debt by area 2010 Chg./09 (€mn) (%) Environment 4,352.6 + 3.8% Construction 519.6 + 25.6% Cement 1,287.5 - 9.3% Versia 290.8 - 36.7% Energy 924.0 + 2.1% Other 374.2 + 41.2% Total 7,748.7 + 1.2% By business area With and without recourse Others 4% Energy 12% Without recourse Ceme
Slide 21: Debt structure and maturity
Citizen Services Debt structure and maturity By type By currency Fixed Floating-rate Euro 49% 51% 82% GBP 11% Czech koruna USD 2% 5% By maturity 82% Long term 26% 29% 18% 13% 14% Dec. 11 Dec. 12 Dec. 13 Dec. 14 > Dec. 14 21
Slide 22: Environmental Services
Citizen Services Environmental Services 2010 (€mn) Chg./2009 (%) Revenues 3,672.2 + 2.0% EBITDA 657.7 + 7.8% EBITDA margin 17.9% + 1.0 p.p. EBIT 323.5 + 8.8% Backlog 25,325 + 6.9% 2005-2010 Revenues +12% CAGR 2005-2010 €3.465 bn €3.637 bn €3.602 bn €3.672 bn €2.836 bn €2.078 bn 2005 2006 2007 2008 2
Slide 23: Environmental Services
Citizen Services Environmental Services Revenues by area Revenue breakdown by region Business 2010 Revenues %/ Chg./09 Spain (€mn) Total (%) 64% U.K. Environment 18% 1,501.1 41% + 0.8% Spain Environment 1,022.2 28% + 2.0% Central and International Eastern Europe Water 868.0 23% - 0.5% USA 13% 3% Ind
Slide 24: Environmental Services
Citizen Services Environmental Services International Revenues: €1.311 bn International backlog: €8 bn 36% of total 31% of total International backlog by business International backlog by country Environment Water U.K 46% 51% 41% Czech Rep. 23% Portugal 8% Italy 21% Industrial waste Others 7% 3% 24
Slide 25: Construction
Citizen Services Construction 2010 (€mn) Chg./2009 (%) Revenues 6,693.6 - 7.0% EBITDA 355.5 - 12.5% EBITDA margin 5.3% - 0.3 p.p. EBIT 241.6 - 14.4% Backlog 9,984 - 8.0% 2005-2010 Revenues +15% 05-10 Revenues €7.745 bn €7.201 bn €6.922 bn €6.694 bn €4.395 bn €3.347 bn 2005 2006 2007 2008 2009 2010 2
Slide 26: Construction
Citizen Services Construction Revenues by area Backlog 2010 - 8.0% Area Revenues %/ Chg./09 (€mn) Total (%) €10.856 bn €9.984 bn Civil Engineering 4,769.9 71% - 3.4% Intl. Intl. Non-residential 1,467.1 22% - 8.5% 42% Coverage: building 45% Last 18 months Residential 456.6 7% - 31.0% building Total 6
Slide 27: Construction
Citizen Services Construction International revenues: €3.671 bn International backlog: €4.472 bn 55% of Total 45% of Total International backlog, by business International backlog, by country Switzerland Residential Austria 7% building 21% Civil engineering Singapore 4% 76% 6% Portugal 6% Germany Cr
Slide 28: Cement
Citizen Services Cement Revenues and EBITDA margin Revenue breakdown by region €1,035.4 mn - 14.4% Spain €886.7 mn 67% US 15% Tunisia 10% 27,9% 24,8% UK 4% Others 4% 2009 2010 Free cash flow Net debt - 19.5% €-131.8 mn €215.8 mn €1,419.3 mn €1,287.5 mn €173.7 mn 2009 2010 2009 2010 28
Slide 29: Versia
Citizen Services Versia Revenue breakdown by business EBITDA by area Handling 2010 Revenues %/ Chg./09 Urban Furniture Area 21% 39% (€mn) Total (%) Logistics 284.9 34% - 1.6% Logistics 4% Handling 244.4 29% + 7.2% Maintenance and others 5% Urban 129.4 15% + 19.7% Furniture Car parks Vehicle Testing
Slide 30: Renewable energy
Citizen Services Renewable energy Wind and solar Location Installed Capacity (MW) 2010 Revenues 20 MW Solar photovoltaic €13.9 mn 2 farms 422 MW Wind 14 farms €72.4 mn Wind farms 165 MW Energy from waste (EfW) Solar thermal power plants Solar power plants 607 MW in total Backlog Location Capacity (M
Slide 31: Concessions - Global Vía
Citizen Services Concessions - Global Vía No. concessions Countries Key figures TOLL ROADS 24 7 1,500 km managed 15 explicit toll 13 Spain 9 shadow toll 2 Portugal 2 Ireland 2 Chile 2 Mexico 2 Costa Rica 1 Andorra METRO 7 Spain 83 km managed AIRPORTS 2 2 9 million passengers annually 1 Spain 1 Chile
Slide 32: Conclusion
Citizen Services Conclusion 3.1 Strategic positioning 3.2 Strategic drivers 3.3 2011 Priorities Mr Baldomero Falcones Chairman and CEO 32
Slide 33: Strategic positioning
Citizen Services Strategic positioning FCC operates with, and is committed to, a strategic platform based on 3 axes expected to grow rapidly at global level... Transport Infrastructure Environmental services Renewable energies ¾The investment needed in 2010/20 ¾In 2020, waste will have grown 35% wit
Slide 34: Strategic drivers
Citizen Services Strategic drivers Growth Reinforce internationalisation process in 3 strategic areas Target Infrastructure More than 60% of sales from Environmental Services & Water international markets Renewable energy CSR Governance Profitability Financing Increase organizational Balance s
Slide 35: 2011 Priorities
Citizen Services 2011 Priorities Greater operating profitability Increase earnings Net attributable income Reduce debt Strengthen solvency Rigour in management of working capital Efficiency and cost savings (procurement and structure) Increase internationalisation Reinforce our leadership Main
Slide 36: Citizen Services
Citizen Services Finance Area IR & Stock Exchange Department 36
Fomento de Construcciones y Contratas — FY2010 Earnings Presentation on 6ix