PDF

Report
ServicesServicios
for Citizens
Ciudadanos
November 2010
1
Services for Citizens
FCC Overview
1.1 What is FCC?
1.2 Balanced Business Model
1.3 Consolidated International Presence
1.4 Sound Financial Position
2
What is FCC?
Citizen Services
International leading group in Environmental Services and Infrastructures
#1 in environmental services in Spain and #2
#1 in waste disposal in the UK
in infrastructure construction
Top 10 worldwide
(€ 3 billion assets)
#2 in infrastructure construction in
Austria and a leader in Eastern Europe
#1 in waste management in
Austria and Eastern Europe
#1 in industrial waste
management in Iberia and
#2 in the US
#2 in water management in Spain
and #4 in the world
#1 in Spain's cement market
#1 in end-to-end water and waste management
in Latin America
3
Balanced Business Model
Citizen Services
EBITDA1 by Business Area
SERVICES & ENERGY
INFRASTRUCTURE
58%
42%
Environmental
Services
Urban Services
45%
8%
Energy
5%
Construction
27%
Cement
15%

Value creation supported by balanced infrastructure, services and energy business activities, with a
strong long-term demand potential, based on an unstoppable urban growth.

Close to 60% of EBITDA comes from recurrent activities with high visibility on cash flow generation such
as environmental services and energy
(1) 9M 2009
4
Citizen Services
Consolidated International Presence
International Revenues1
International
45%
Construction
30%
Services
12%
Domestic
55%
Cement
2%

45% of revenues come from international markets

Mainly from Europe (85%), where FCC has become a leading player in Infrastructures and Environmental
Services

International backlog has grown by 17% in the last twelve months1
(1) 9M 2009
5
Sound Financial Position
Services for Citizens
Financial leverage1
29%
Equity
Operating C.F.
71%
38%
Without recourse
62%
With recourse
Net debt
Financial Expenses
= 5.74
Net Debt
EBITDA
= 3.452
Debt structure1
Infrastructure
24%
Services & Energy
73%
Other
3%

Debt structure by area is in line with cash-flow visibility

Strong liquidity position with over 1.2 billion € in available credit lines3
(1) FY 2009
(2) Net Debt and EBITDA, both with recourse
(3) As of 9M10
6
Services for Citizens
FCC Strategy
2.1 Strategic drivers
2.2 Priorities by area
2.3 2010 targets
7
Strategic Drivers
Citizen Services
Growth
Reinforce Internationalization Process

Infrastructures


Environmental Services & Water
Renewable Energies
Profitability
Increase Organizational
Efficiency
 Process reengineering
 Cost optimization
 Synergy Procurement
200 Mn€ of additional
cost savings as from 2011
Above 60% of sales
from abroad in 2013,
mostly from key
areas
Financing
Balance Sheet Management
 Working capital restraint
 Financial leverage reduction
 Active management of asset
portfolio
Target
Net Debt to Ebitda ≤ 3x
8
Environmental Services
Citizen Services
Revenues by type of business1
• High component of public
service
41%
28%
Environment
Spain
Environment
International
Revenues by region1
Features
Domestic 64%
• Stable, regulated and long-term
contracts
U.K.
18%
• High entry barriers
• Capital intensive projects
23%
Water
• High operating margins
8%
Industrial Waste
• High earnings visibility (backlog)
Central & Eastern
Europe 13%
USA 3%
Growth in near markets (“buy and build”)

Strengthen position in Recycling area in core EU Markets (Spain, UK and Central Europe): EU foresees 35 %
waste generation growth up to 2020, whereas European Waste Directive2 aims for 50% of urban waste to be
recycled by 2020 against current 40%.

Water business expansion based on BOT projects in developing countries. Water infrastructure needs in
2010/2020 will exceed combine investment in transport infrastructure and energy3.

Gear on our branding quality to raise capital from international banking support (agreement with EBRD and
World Bank).
(1) 9M 2009
(2) Source: Eurostat
(3) Source: “Infrastructure to 2030” – OECD
9
Infrastructure
Citizen Services
Revenues by type of business1
Revenues by region1
Features
• Specialized in large
infrastructures (civil works)
Domestic 45%
Austria 22%
• High entry barriers
76%
Civil Works
Germany 10%
• Operating flexibility
• Strong cash flow generation
15%
Non residential building
9%
Residential building
• Backlog covers ≈ 18 months of
production
Other
countries 5%
Eastern
Europe 13%
Rest of Europe 5%
Reinforce internationalization process with focus in 5/6 markets

A 2-folded strategy: Maintain EU “Home Markets” position plus strong expansion in 5/6 new selected
quality jurisdiction. FCC international backlog has increased by over 20% since final 20081 . Some of the
most relevant in-take in non-local markets are as follows:
 Algeria: 1.293 M€
 UK: 366 M€
 Panama: 1.220 M€
 Mexico: 266 M€
 Rumania: 220 M€

Extraordinary Investment Plan (PEI) in Spain might partially offset the impact of public demand restrictions
for infrastructure

Transport Infrastructure concession unit (50% stake in GVI) to crystallize value in the medium term
(consolidation > growth > transfer)
(1) 9M 2009
10
Energy
Citizen Services
Installed capacity (MW)*
20 MW
20 MW
Solar
Features
Location
• Recurrent revenues with
regulated tariffs
• Capital intensive projects
422 MW
422 MW
+
100 MW
Wind
• Non recourse financing
• Natural hedge of energy cost in
the Cement business in Spain
(≈15% of the production cost)
Thermo-solar
Under development:
2011-2014
Wind farms
Thermo-solar plants
Solar power plants
*Not including:
– 165 MW of “Energy from Waste” (biomass) installed within the environmental division
– 100 MW of wind capacity awarded in Catalonia (Spain) to be installed as from 2013
– 60/80 MW of wind capacity to be installed in FCC’s U.K landfills
Growth through green field projects in markets with higher potential

Organic and self financing growth: Development of 2 thermo-solar projects in 2011/2014 (c40% growth in
area revenues). Operating cash flow and project finance debt to back organic growth.

Synergies: Explore green field opportunities in Group diverse locations (UK, USA and Central Europe).

In house think-tank. New lines of activities from Energy Efficiency Services (Efitek), roof solar installation,
energy and electric vehicle infrastructure.
(1) Source: Eurostat 2009
11
Cement
Citizen Services
Leading position in Spain
Features
Revenues by region1
• High entry barriers
• Mature industry
Domestic 67%
USA 15%
• Strong cash flow generation
• Temporary low demand situation
Tunisia 10%
Rest 6%
Region where CPV operates
Cement Factories
Maximize cash flow generation

Focus on profitability and reinforcing leading position centered in the Spanish Market.

Enhance competitive leadership in Spain after the hard landing suffered in 2007/2010 (a 20-year low)

Management focused on increasing efficiency improvement and cost optimization
 Plan 100 + → 71 M€ of recurrent savings in 2009 and goal of > 100 M€ savings in 2010
 Alternative fuel replacement → 6% in 2009, up to 30% by 2013
(1) 9M 2009
12
Urban Services (Versia)
Citizen Services
Revenues by region1
Revenues by type of business1
Maintenance & other
7%
Vehicle Testing
7%
Handling
29%
Domestic 67%
Western
Europe 26%
Car parks
9%
Urban
Furniture 14%
USA
3%
Logistics
34%
Others
3%
Active management of asset portfolio

Growing trend towards logistics and handling services outsourcing

Weakening of traditional mass media in favor of Internet and outdoor publicity (urban furniture)

Vehicle testing, car parks and maintenance businesses linked to long term public service concessions
(1) 9M 2009
13
2010 Targets
Services for Citizens

To beat 2009 results
EBITDA
Net profit
Debt containment

Strict management of balance
sheet and cash generation
Rigorous working capital management
Efficiency and cost saving (purchases and structure)
Raise market share with improved profitability

Reinforce our leadership

Shareholder value
commitment
Increase presence in international markets
Active management of asset portfolio
Sustained Pay-out (2010 GDY over 7%)
Consolidate 2010 as year of the cycle change
14
Services for Citizens
FCC Market Valuation
3.1 Valuation multiples
15
Market valuation
Citizen Services
P/ Book Value 2010 (x)
P/E 2010 (x)
1,9
13,8
8,6
1,0
FCC
Sector Average
Gross Dividend Yield 2010 (%)
FCC
EV/EBITDA 2010 (x)
7,4
8,7
3,8
FCC
Sector Average
Sector Average
7,0
FCC
Sector Average
European Infrastructure and Service Sector
16
Services
for Citizens
We help create eco-efficient communities
Thank you
Finance Department
Investor Relations
17

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