Slide 1: 2008 Preliminary Results
2008 Preliminary Results 5 March 2009
Slide 2: Duncan Magrath, Finance Director
Duncan Magrath Finance Director
Slide 3: Headline numbers
Headline numbers 2008 2007 Revenue £9,486m £7,488m +27% Pre-tax profit* £249m £201m +24% Adjusted eps* 39.9p 35.0p +14% Full-year proposed dividend 12.8p 11.5p +11% Cash generated from operations £297m £277m Net cash (excluding 100% PPP) £440m £374m O d book Order b k £12 8b £12.8bn £11 4b £11.4bn +
Slide 4: Building, Building Management and Services
Building Building Management and Services Building, 2008 2007 Order book £6.7bn £6.1bn +10% Revenue £4,635m £3,640m +27% Profit £88m £70m +26% Acquisitions of Dean & Dyball and Barnhart Full year contributions from BB Construction US, Cowlin and Covion Write downs on a UK building services pro
Slide 5: Building, Building Management and Services
Building Building Management and Services Building, Programme & Facilities Management (60% growth) £892m £89 Building Services Building Construction £542m £3,201m (5% growth) (25% growth) Revenue £4,635m (+27%) (2007: £3,640m) The creation and care of essential assets 5
Slide 6: Civil and Specialist Engineering and Services
Civil and Specialist Engineering and Services 2008 2007 Order book £4.9bn £4.4bn +11% Revenue £3,243m £2,668m +22% Profit £104m £82m +27% Good progress in UK roads and BB Utility Solutions Appointed preferred bidder for M25 widening and maintenance PPP BB Management M t contributing t ib ti to
Slide 7: Civil and Specialist Engineering and Services
Civil and Specialist Engineering and Services UK Civil Engineering £1 253m £1,253m £1 086m £1,086m UK Utilities & Services (32% growth) (10% growth) £904 £904m International (24% growth) Revenue £3,243m (+22%) (2007: £2,668m) The creation and care of essential assets 7
Slide 8: Rail Engineering and Services
Rail Engineering and Services 2008 2007 Order book £1.2bn £0.9bn +33% Revenue £1,055m £785m +34% Profit £41m £40m +3% Acquisition of Schreck-Mieves Won bid for rail systems work on the Gotthard Base Tunnel Good result from international electrification business Track renewals work in the UK
Slide 9: Rail Engineering and Services
Rail Engineering and Services Other UK £522m £533m (34% growth) (35% growth) Revenue £1,055m (+34%) (2007: £785m) The creation and care of essential assets 9
Slide 10: Investments
Investments 2008 2007 JVs & JVs & £m Group assocs Total Group assocs Total PPP concessions* 1 31 32 1 29 30 Infrastructure investments* investments (3) 17 14 - 12 12 BB Communities 10 2 12 - - - Overheads & bidding costs (27) - (27) (26) - (26) Investments operating profit* (19) 50 31 (25) 41 16 +94
Slide 11: Investments
Investments BB Communities (GMH Military Housing) acquired Financial close for AMC West, West Point and Fort Jackson Acquired Fort Leonard Wood and Lackland Blackpool Airport acquired Financial close for Islington g Schools and ITE Singapore g p Appointed preferred bidder for M25 project
Slide 12: PPP portfolio valuation 2008
PPP portfolio valuation 2008 BB Capital BB Communities £556m £6m £51m £15m £1m £8m (£18m) £10m £429m* £10m £32m £1m £196m £145m £11m (£27m) £27m £123m* £123m £ 3 £360m £360m £306m £317m 2007 Equity Distributions Unwind Restated Project Acquisitions Operational 2008 FX 2008 Invested of discount wins
Slide 13: Investment income & finance costs
Investment income & finance costs £m 2008 2007 PPP subordinated debt interest receivable 12 11 PPP interest on financial assets 7 2 Income on net investment hedges 6 - Other interest receivable 13 16 Net investment income – pension schemes 5 13 Investment income 43 42 PPP interest on bank loans and
Slide 14: Performance by sector
Performance by sector £m 2008 2007 Building, Building Management and Services 88 70 Civil and Specialist Engineering and Services 104 82 R il E Rail Engineering i i and dSServices i 41 40 Investments 31 16 Corporate costs (34) (30) Profit from operations* 230 178 Investment income 43 42 Finance cost
Slide 15: Exceptional items and intangible asset amortisation
Exceptional items and intangible asset amortisation Profit from £m operations Tax Net Exceptional items: Pension gain 60 (17) 43 Acquisition integration, reorganisation & other costs (6) 2 (4) Withdrawal of industrial buildings allowances (3) (3) (6) 51 (18) 33 Amortisation of intangible assets (27)
Slide 16: Cash generated from operations
Cash generated from operations £m 2008 2007 Group operating profit* 155 113 Depreciation 65 50 E Exceptional ti l cash h it items (6) (39) Other items 7 3 e s o de Pension deficit c t pay payments e ts (38) ((10) 0) Working capital decrease/(increase) 114 160 Cash generated from operations 297 277 N
Slide 17: Pensions charge
Pensions charge £m 2008 2007 Defined benefit schemes: P&L charge – current service cost 45 54 Expected return on assets (141) (133) Interest on scheme liabilities 136 120 Net finance credit (5) (13) Net pension charge 40 41 Defined contribution schemes: P&L charge and employer funding contributions
Slide 18: Group balance sheet
Group balance sheet £m Dec 2008 Dec 2007 Goodwill and intangible assets 1,198 753 Other non-current assets (excluding PPP) 1,029 858 Current assets (excluding cash) 1 703 1,703 1 292 1,292 Current liabilities (excluding borrowings) (2,797) (2,146) Net cash (excluding PPP subsidiaries) 440 374 PPP su
Slide 19: Balance sheet cash movement
Balance sheet cash movement £m 2008 2007 Opening net cash† 374 305 Cash generated from operations 293 279 Dividends from JVs and associates 53 83 Capital expenditure and financial investment (83) (132) Acquisitions and disposals (331) (107) Share issue - proceeds from placing 182 - Dividends, intere
Slide 20: Acquisitions
Acquisitions £m Balfour Beatty Communities # 30 April 180 Dean & Dyball * 18 March 50 Barnhart * 4 June 36 Blackpool International Airport * 5 May 15 Schreck Mieves * Schreck-Mieves 31 JJuly l 32 Other 14 Deferred consideration 4 331 # formerly GMH Military Housing * after adjusting for cash balance
Slide 21: Cash balances
Cash balances £ US $ € Other Monthly average cash balance £500m £ £400m 312 £300m 254 249 223 £200m £100m £0m Jun-07 Dec-07 Jun-08 Dec-08 The creation and care of essential assets 21
Slide 22: Committed bank facilities
Committed bank facilities £500m £ US $ £400m £300m £200m £100m £0m Dec 08 2008 Dec 09 2009 Dec 10 2010 Dec 11 2011 Sep 12 2012 The creation and care of essential assets 22
Slide 23: Pensions – balance sheet movement
Pensions – balance sheet movement +£45m -£70m £70 +£62m -£60m -£2m £286m £261m December Current Company Actuarial Liability Other December 2007 service cost contributions losses (net) mitigation movements 2008 The creation and care of essential assets 23
Slide 24: Summary
Summary Continuing growth in profits Strong cash flow Strong cash position to support future growth The creation and care of essential assets 24
Slide 25: Ian Tyler, Chief Executive
atmo ea lan Tyler Chief Executive
Slide 26: A resilient business
A resilient business Financial strength Visibility of future work The creation and care of essential assets 26
Slide 27: Order book
Order book £14bn June Dec £12bn £10bn £8bn £6bn £4bn £2bn £0bn 2005 2006 2007 2008 The creation and care of essential assets 27
Slide 28: Order book and pipeline – December 2008
Order book and pipeline – December 2008 £40.7bn £19.2bn £12 8bn £12.8bn £4.9bn £3.8bn Order Book Preferred Bidder Frameworks Concession Total Pipeline Extensions Income & FM The creation and care of essential assets 28
Slide 29: Order book and pipeline
Order book and pipeline Order book Pipeline £2 9 £25.9bn £23.3bn £8.7bn £1.9bn £6.1bn £2.7bn £6 8bn £6.8bn £3.4bn £2.6bn 2009 2010 2011+ The creation and care of essential assets 29
Slide 30: A resilient business
A resilient business Financial strength Visibility of future work Customer profile The creation and care of essential assets 30
Slide 31: Revenue by customer sector
Revenue by customer sector Regulated g 26% Public 55% Private 19% Includes: Private education Private hospitals The creation and care of essential assets 31
Slide 32: A resilient business
A resilient business Financial strength Visibility of future work Customer profile Cost flexibility Breadth of portfolio The creation and care of essential assets 32
Slide 33: Revenue by market sector
Revenue by market sector Health Defence 10% 6% Education Commercial 12% Building 12% FM 5% Roads Other 12% 14% Rail Utilities/Other Infra 14% 15% The creation and care of essential assets 33
Slide 34: Roads
Roads The creation and care of essential assets 34
Slide 35: Overseas power transmission
Overseas power transmission The creation and care of essential assets 35
Slide 36: Rail
Rail The creation and care of essential assets 36
Slide 37: Military housing / PPP
Military housing / PPP The creation and care of essential assets 37
Slide 38: Facilities management
Facilities management The creation and care of essential assets 38
Slide 39: Heathrow East Satellite project
Heathrow East Satellite project The creation and care of essential assets 39
Slide 40: National Grid US
National Grid US The creation and care of essential assets 40
Slide 41: Geographical split – 2008 revenue
Geographical split – 2008 revenue US 24% UK RoW 64% 12% The creation and care of essential assets 41
Slide 42: A resilient business
A resilient business Financial strength Visibility of future work Customer profile Cost flexibility Breadth of portfolio The creation and care of essential assets 42
Slide 43: Nuclear new-build
Nuclear new-build The creation and care of essential assets 43
Slide 44: Crossrail
Crossrail The creation and care of essential assets 44
Slide 45: Balfour Beatty
Balfour Beatty
Slide 46: Appendices
Appendices Balfour Beatty
Slide 47: Building, Building Management and Services
Building Building Management and Services Building, Revenue Order book £4.6bn £3 6b £3.6bn £3 7bn £3.7bn £1.7bn £1.3bn 2007 2008 2009 2010 2011+ The creation and care of essential assets 47
Slide 48: Civil and Specialist Engineering and Services
Civil and Specialist Engineering and Services Revenue Order book £3.2bn £2.7bn £2.4bn £1.4bn £1.1bn 2007 2008 2009 2010 2011+ The creation and care of essential assets 48
Slide 49: Rail Engineering and Services
Rail Engineering and Services Revenue Order book £1.1bn £0.8bn £0.7bn £0 2b £0.2bn £0 3bn £0.3bn 2007 2008 2009 2010 2011+ The creation and care of essential assets 49