Epoc 2010 070711

EPoC 2010 European powers of construction
June 2011
EPoC is an annual publication edited by Deloitte and distributed free Director Javier Parada, partner in charge of the Infrastructure Industry, Spain Coordinated by Margarita Velasco Alberto Benito Benito Edited by CIBS Contact Infrastructure Department, Deloitte Madrid Plaza Pablo Ruiz Picasso, S/N Torre Picasso 28020 Madrid, Spain Phone + 34 91 514 50 00 Fax + 34 91 514 51 80 June 2011
Contents
5 6 7 8 Introduction Ranking of listed European construction companies Top 50 European Powers of Construction ranking by sales Top 20 European Powers of Construction ranking by market capitalisation Internationalisation and diversification profiling of the TOP 20 EPoC Working abroad: Internationalisation of EPoC The diversification of European construction companies Financing the diversification Top 20 listed European companies Company profiles European Construction and Infrastructure Group Contacts
9 11 16 18 21 62
Welcome to the eighth edition of European Powers of Construction
Introduction
Six months after the end of the year 2010, EPoC 2010 examines the status of the major European listed construction companies at December 2010 and its position on key industry issues such as the level of diversification, level of internationalisation, construction activity margin or indebtedness levels.
We are pleased to present European powers of construction (EPoC) 2010, our eighth annual publication which identifies the main European construction companies and discusses the situation of the construction sector. 2009 and 2010 have been difficult years for the construction sector, following the 2008 credit crunch and the subsequent economic recession. The economic downturn has been keenly felt across the real estate sector of most European countries and it has also affected construction of public infrastructure. However, this sector is very diverse and has demonstrated its innovation over the years. Most of the companies that we are analysing had anticipated the exhaustion of their traditional business models, based on domestic construction either for the Public Sector or for real estate developers, and were able to successfully expand their business in terms of both geographical locations and activities performed. While discussing the internationalisation of the European construction companies and how their successful attempts for diversification have positively impacted their revenues and margins, we cannot forget that usually diversification and international expansion come at a cost. Therefore, a discussion on indebtedness levels and diversification of both activities and locations is also included in our analysis. We maintain a section dedicated to profiles, which in the 2010 EPoC edition are focused on the top 20 listed European construction companies. We present key data regarding ownership structure, main activities and international presence, goals and strategic objectives. In addition we have included an appendix for each company that shows relevant data extracted from the companys financial statements for 2010. We hope that you find the EPoC 2010 analysis of the construction sector to be of interest, and that the information presented herein helps you to understand and think over the challenges and opportunities of this sector. We welcome your ideas and suggestions about any of the topics covered.
Ranking of listed European construction companies

The ranking of the Top 50 EPoC 2010 by sales volume is headed by Vinci as in previous years. In addition, Bouygues and Hochtief maintain their second and third place so there are no changes in the top 3 places of the EPoC ranking. France dominates the Top 50 in terms of total sales, with also three companies listed within the top 5. There are no more listed French constructor companies in the remaining positions of the ranking. Spain has the largest presence in the top 20, placing six companies between the fourth and the seventeenth positions. Only one other Spanish company is included in the top 50. With the consolidation of Hochtief in 2011, Spanish group ACS will achieve proforma sales of 35,539 million stepping to the number 1 proforma position in the EPoC ranking by revenue. The United Kingdom has the largest number of companies in the top 50, with 13 companies, but their relative size is smaller in comparison to Spanish or French companies. The UK has a number of housebuilders, whose dynamics are different to other construction companies of the ranking, more focused on civil engineering.
French, Spanish and British companies lead the EPoC ranking by volume of sales but with certain differences in their relative size
Country France Spain United Kingdom Germany Sweden Austria Netherlands Finland Italy Portugal Turkey Greece Norway Switzerland Denmark Poland Total
Total Sales 78,154 56,508 38,284 29,298 22,959 15,603 11,650 5,680 5,060 4,279 3,555 2,544 1,972 1,731 1,114 1,048 279,439
Number of Companies 3 7 13 3 4 2 3 2 3 3 1 2 1 1 1 1 50
Average Sales 26,051 8,073 2,945 9,766 5,740 7,802 3,883 2,840 1,687 1,426 3,555 1,272 1,972 1,731 1,114 1,048 5,589
Top 50 European Powers of Construction ranking by sales

Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Company Vinci SA Bouygues SA Hochtief AG ACS, Actividades de Construccin y Servicios, SA Eiffage SA Skanska AB Strabag SE Balfour Beatty Plc Ferrovial SA Fomento de Construcciones y Contratas SA (FCC) Bilfinger Berger SE Koninklijke Bam Groep NV Acciona SA Carillion PLC NCC AB Obrascon Huarte Lain SA (OHL) Sacyr Vallehermoso SA Peab AB Yit Oyj Enka Insaat Ve Sanayi AS Taylor Wimpey Plc Porr Group Heijmans NV Barratt Developments Plc Morgan Sindall Plc Kier Group Plc Interserve Plc Impregilo Spa Astaldi Spa Mota Engil Sgps SA Veidekke Asa Lemminkainen Oyj Persimmon Plc Ellaktor SA Implenia AG Galliford Try Plc Teixeira Duarte Engenharia e Construoes SA Ballast Nedam NV Keller Group Plc Costain Group Plc Bauer Aktiengesellschaft Mt Hjgaard Interior Services Group Plc Polimex Mostostal SA JM AB Trevi Group Grupo Soares Da Costa SGPS Sa Bellway Plc Grupo Empresarial San Jose SA J&P-Avax SA Country France France Germany Spain France Sweden Austria United Kingdom Spain Spain Germany Netherlands Spain United Kingdom Sweden Spain Spain Sweden Finland Turkey United Kingdom Austria Netherlands United Kingdom United Kingdom United Kingdom United Kingdom Italy Italy Portugal Norway Finland United Kingdom Greece Switzerland United Kingdom Portugal Netherlands United Kingdom United Kingdom Germany Denmark United Kingdom Poland Sweden Italy Portugal United Kingdom Spain Greece FY END Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Jun 10 Dec 10 Jun 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Jun 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Dec 10 Jun 10 Dec 10 Dec 10 Dec 10 Dec 10 Jul 10 Dec 10 Dec 10 Sales ( m) 33,376 31,225 20,159 15,380 13,553 12,815 12,777 12,288 12,169 12,114 8,007 7,611 6,263 5,991 5,182 4,910 4,820 4,004 3,788 3,555 3,034 2,826 2,680 2,450 2,386 2,315 2,182 2,062 2,045 2,005 1,972 1,892 1,829 1,753 1,731 1,390 1,380 1,359 1,246 1,191 1,132 1,114 1,106 1,048 958 953 894 876 852 791 EBITDA ( m) 5,052 3,701 1,643 1,500 1,852 735 735 422 2,514 1,435 511 206 1,211 265 236 1,005 572 234 256 584 220 103 83 71 89 107 123 282 230 237 98 65 150 279 82 37 150 45 99 37 166 30 16 63 95 137 88 60 68 80 EBIT ( m) 3,429 1,760 715 1,077 1,041 572 299 240 1,514 774 343 (30) 527 227 236 700 394 158 221 505 215 49 48 61 64 102 87 224 174 132 53 29 145 167 53 33 84 18 50 34 88 13 13 40 95 84 50 58 25 80 Market Capitalisation ( m) (a) 23,694 12,122 4,451 10,773 3,806 6,040 2,516 2,637 6,951 2,931 2,852 1,261 4,667 1,819 1,965 2,763 3,530 1,791 2,500 7,122 1,396 280 402 339 523 1,186 393 896 527 377 797 491 1,519 618 415 319 272 163 451 185 613 178 64 407 1,303 554 88 923 350 96
(a) Figures at May 2011
Top 20 European Powers of Construction ranking by market capitalisation

Vinci, Bouygues and ACS head the ranking of the Top 20 EPoC 2010 by market capitalisation
The ranking of the Top 20 EPoC 2010 by market capitalisation is headed by Vinci and Bouygues, which are also the first companies in our ranking by sales. Among the rest of the companies, ACS, Enka, Ferrovial, Acciona, OHL, Sacyr and Yit climb places in comparison with the ranking by sales. Particularly significant is the case of Enka that reaches the fourth place helped by its diversification and the buoyant markets where the Turkish group operates.
Ranking
COMPANY Vinci SA
Country France France Spain Turkey Spain Sweden Spain Germany France Spain Spain Germany Spain United Kingdom Austria Finland Sweden United Kingdom Sweden United Kingdom
Sales ( m) (a) 33,376 31,225 15,380 3,555 12,169 12,815 6,263 20,159 13,553 4,820 12,114 8,007 4,910 12,288 12,777 3,788 5,182 5,991 4,004 1,829
EBITDA ( m) (a) 5,052 3,701 1,500 584 2,514 735 1,211 1,643 1,852 572 1,435 511 1,005 422 735 256 236 265 234 150
EBIT ( m) (a) 3,429 1,760 1,077 505 1,514 572 527 715 1,041 394 774 343 700 240 299 221 236 227 158 145
Market Capitalisation ( m) (b) 23,694 12,122 10,773 7,122 6,951 6,040 4,667 4,451 3,806 3,530 2,931 2,852 2,763 2,637 2,516 2,500 1,965 1,819 1,791 1,519
1 2 3 4 5
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Bouygues SA ACS, Actividades de Construccin y Servicios, SA

Enka Insaat Ve Sanayi AS Ferrovial SA Skanska AB Acciona SA Hochtief AG Eiffage SA Sacyr Vallehermoso SA Fomento de Construcciones y Contratas SA (FCC) Bilfinger Berger SE Obrascon Huarte Lain SA (OHL) Balfour Beatty PLC Strabag SE Yit Oyj NCC AB Carillion PLC Peab AB Persimmon PLC
(a) Figures at December 2010 (b) Figures at May 2011
Internationalisation and diversification profiling of the top 20 EPoC

A quick glance at the top 20 listed European construction companies, taking into account the internationalisation level and the diversification of their activities, will show that EPoC could be classified into four main categories. Domestic construction groups This group comprises companies whose primary source of revenue is construction within local markets. International sales account for less than 40% of total sales made. Vinci and Bouygues are without any doubt the first two companies of our 2010 ranking taking into account total revenues. The international presence of both groups is significant (12,449 million and 9,719 million of total revenues, respectively), but they still achieve over 60% of revenues in France. In a similar way, although in recent years both French giants have diversified their activity portfolio, their construction revenue represents 84% and 74% of their total revenue figure, respectively. On a smaller scale, Peab obtains 86% of its revenue in Sweden and is also focused in the construction business from where 86% of its revenues are derived. International construction groups The second group of companies is comprised of companies whose primary source of sales is the construction business outside their country of origin. Hochtief is the most international European construction group, with 87% of its construction revenue being earned in America and Asia/Oceania. Contrary to Peab, Swedish companies NCC and Skanska achieve over 40% of their revenues outside of their home country. NCC works in Denmark, Finland and the other Baltic countries. Skanska is active in the UK, Eastern Europe and the Americas.
100% 90% 80% Enka ACS International Conglomerates FCC Carillion Sacyr Bilnger Balfour Beatty Bouygues 20% 10% Peab "Domestic" Construction Groups 10% 20% 30% International Construction Groups Skanska Bam NCC Yit 50% 60% 70% OHL Ferrovial
Non-construction revenues / total revenues %
70% 60% 50% 40%
"Domestic" Conglomerates Eiffage
Acciona
30%
Vinci
Hochtief Strabag 80% 90% 100%
40%
International revenues / total revenues %
Nine of our EPoC 2010 companies obtain at least 50% of their revenues from non-construction activities. Eleven of them generate at least 40% abroad
Finally, the limited size of their local markets encourage the Finnish company Yit, the Austrian company Strabag and the Dutch company Bam Groep to carry on their activities in other European countries. Domestic conglomerates A third group of companies is comprised of companies that have diversified their business portfolio to non-construction activities but conduct most of their business in domestic markets. Spainsh companies ACS, Acciona and Sacyr have extended their activities to foreign markets. However, in 2010 almost 70% of their activity was still performed in Spain. In addition to their international expansion, ACS, Acciona and Sacyr have diversified their business portfolios. They provide environmental services such as waste disposal or water treatment plants, energyrelated services, transportation or infrastructure projects. Consequently construction revenue does not exceed 60% of total revenues. With the consolidation of Hochtief in 2011, ACS radically changes its profile with proforma international sales of approximately 66%. Hochtief consolidation also drives ACS to the number 1 proforma position in the EPoC ranking by sales.
Carillions diversification has been oriented to provide support services and Eiffage has achieved a significant presence in energy and concession sectors. Both companies generate over 40% of their revenues through non-construction related activities, although given the location of such activities, they must be primarily considered as domestic. Enka has reached a significant position in Russia, although the Turkish market still represents over 70% of total revenues. In terms of activity, Enka is the most diversified listed European construction group. Its focus on the energy sector and trade and manufacturing causes the traditional construction business to represent less than 25% of its total revenue in 2010. International Conglomerates Finally, there is a group of companies that are highly diversified and have significant international sales. Ferrovial and OHL achieve almost 70% of their revenues outside of Spain, with significant diversification. Ferrovial derives more than 60% of its revenue from non-construction activities, mainly environmental services, airports and infrastructure projects, in the UK, Poland and North America. OHL has significant construction activities in the USA, Algeria and the Middle East and is also especially strong in Mexico and Brazil where its concession business is very significant. FCC and Balfour Beatty obtain approximately 50% of their revenues in foreign markets and non-construction activities. FCCs diversification has been oriented mainly to environmental services in Austria, Germany,the UK and Eastern Europe. Balfour Beatty has a strong presence in Asia and North America and has diversified its construction activity, providing professional services and support services. Bilfinger is present in the five continents, obtaining approximately 58% of its revenues in foreign markets. The German group has diversified its activities to include industrial services and power services that represent almost 50% of the group revenues in 2010.
10
Working Abroad: Internationalisation of EPoC

The limited size of the Western European market, its evolution over the last years, as well as the experience gained by the European companies in the construction sector and in other sectors where they have focused their efforts in recent years, have meant that the internationalisation of their business has become an attractive model that most EPoC have decided to pursue. After several years of low or no growth, investment in the construction sector within the European Union decreased 3.6% in 2010, with expected 2011 growth of only 0.2%. In this context, the major European construction groups have looked abroad for growth opportunities and, as of today, our 2010 EPoC are present in the five continents obtaining about 49% of their revenues outside of their national borders. This trend has strengthened in recent years, and is expected to continue in the near future. This diversification is focused on civil engineering and other activities, excluding house building, which, due to its very nature, is difficult to export. The distribution of EPoC 2010 sales by geographical area is as follows:
Millions of Euros Company Hochtief AG Strabag SE Skanska AB OHL Ferrovial SA Yit Oyj Bilfinger Berger SE Bam Groep NV Balfour Beatty PLC NCC AB FCC Vinci SA ACS Bouygues SA Sacyr Acciona SA Enka Carillion PLC Eiffage SA Peab AB Country Germany Austria Sweden Spain Spain Finland Germany Netherlands United Kingdom Sweden Spain France Spain France Spain Spain Turkey United Kingdom France Sweden International Sales/Total Sales 91.86% 85.07% 78.00% 69.74% 69.06% 61.88% 58.30% 55.38% 52.64% 46.32% 46.00% 37.30% 31.81% 31.13% 31,00% 30.80% 28.50% 25.10% 14.88% 14.21% 49.05% Total Sales 20,159 12,777 12,815 4,910 12,169 3,788 8,007 7,611 12,288 5,182 12,114 33,376 15,380 31,225 4,820 6,263 3,555 5,991 13,553 4,004 229,987 Domestic Sales 1,642 1,907 2,435 1,496 3,765 1,444 3,358 3,397 5,820 2,782 6,541 20,927 10,488 21,506 3,326 4,334 2,543 4,476 11,536 3,435 117,158 Rest of Europe 977 10,067 5,238 476 6,513 2,327 3,030 3,878 2,400 4,792 8,543 978 4,277 847 987 964 1,917 569 58,781 America 6,891 246 5,142 2,444 1,610 591 3,582 279 1,297 2,967 2,446 331 826 28,652 Asia / Oceania 10,642 421 172 509 911 1,643 30 48 586 14,962 Africa 7 136 271 635 1,698 1,351 164 100 4,362 Not Specified 51 281 17 (117) 336 2,886 502 947 2 122 942 103 6,072
11
The Americas - sales (millions of Euros) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Skanska AB Ferrovial SA Vinci SA Carillion PLC Balfour Beatty PLC Bilnger Berger SE Hochtief AG ACS Bouygues SA OHL 0
Balfour Beattys international sales are obtained mainly in the USA. Construction sales and professional services sales were approximately 2,500 million and 1,050 million, respectively. The acquisition of Halsall in 2010, with a workforce over 300 people, opens the doors of the Canadian market to the Group. ACS is present in basically all the countries of the American continent. Nonetheless, Mexico and the United States are the two countries that show the Groups highest sales (approximately 1,000 million each). In the last three years, ACS has acquired the American groups Schiavone, Pulice and John Picone. Bouygues derives 7% of its total sales in the USA and Canada, amounting to 2,301 million in 2010. Most of these sales were obtained through the worlds leading road builder Colas. OHL is the sixth EPoC group with highest revenue in America and is certainly a leader in the Central/South America area. Mexico and Brazil report more than 900 million revenues each, in the International Construction and Concession Infrastructures divisions. American sales of Ferrovial are mainly obtained in the USA and Canada, where it obtained revenues over 1,400 million in 2010. The Canadian highway 407 ETR in Toronto had revenues of 457 million, with an EBITDA over sales of approximately 80%. This subsidiary has been accounted for using the equity method since the last quarter of 2010. Vinci derived revenues of 944 million in 2010 from the USA and Canada. More than half of this figure was obtained by Eurovia. In addition, 10% of the American revenues of the Group were obtained by Vinci Park through its 445,000 parking spaces in the USA and 126,000 parking spaces in Canada. Two companies generate revenues of between 500 million and 1,000 million. Carillion generates over 800 million through construction services in Canada and the Caribbean area, while Bilfinger produced sales of almost 600 million in the USA.
The Americas Hochtief has revenue of nearly 6,900 million in the Americas, mainly the USA and Canada. Through its subsidiary Turner, Hochtief is the number one general builder in the USA, being present in sub-segments such as healthcare, education or office properties. It also ranks first in the green building segment. Flatiron is their brand to participate in complex infrastructure projects, such as bridges and roads. In 2010, the Group acquired a heavy construction contractor, E.E. Cruz, which operates in the New York metropolitan area. Skanska reached sales of almost 4,500 million in North America and more than 500 million in South America. Through its subsidiaries, Skanska USA Building and Skanska USA Civil, the Group has become a leader in the New York City area. They have participated in projects such as the PATH commuter train station that connects New Jersey with Lower Manhattan, the reconstruction of the World Trade Center area in New York City and the renovation of the Brooklyn Bridge.
12
Asia/Oceania Hochtief achieved revenues in excess of 10,600 million in Asia/Oceania in 2010, orchestrating its activities in the region through its majority shareholding in the Leighton Group. Hochtief holds the leading position in the Australian market and this position is being used to step up in particularly high-growth countries of Asiasuch as Indiaand in the Gulf States. Hochtiefs main activities in the Asia-Pacific area are infrastructure, construction and contract mining. Behind Hochtief, but with significant sales in the AsiaPacific area, Bouygues obtained revenues of 1,643 million in this region during 2010, mainly in the Asian countries of the Pacific Rim. In Oceania it reported sales of 149 million and the Middle East sales of 127 million. Vinci had over 900 million revenue in this area in 2010. The presence in its shareholding structure of Qatari Diar, which controls 5.7% of the Group, certainly contributes to its operations in the Middle East and the rest of Asia. Carillion and Bilfinger reached sales between 500 million and 600 million in 2010, most of them in the Middle East. Africa Sogea Satom is Vincis main brand in Africa where the Group obtained revenues of 1,698 million in 2010, across the entire continent. Bouygues achieved sales of 1,351 million in Africa during 2010. These sales were obtained by Bouygues Construction and Colas in similar proportions in Morocco, South Africa and some other countries, members of the African Financial Community. Bilfinger completes the top three EPoC companies that have obtained sales in Africa over 500 million. South Africa is one of its main markets, with Bilfiger maintaining and repairing about 70% of the countrys installed power generation capacity.
Asia/Oceania - sales (millions of Euros) 12000 10000 8000 6000 4000 2000 0
Hochtief AG
Bouygues SA
Vinci SA
Carillion PLC
Africa - sales (millions of Euros) 2000
1500
1000
500
Vinci SA
Bouygues SA
Bilnger Berger SE
Bilnger Berger SE
13
Geographic diversification of EPoC 2010
1 Canada Acciona ACS Balfour B. Bouygues Bilfinger Carillion FCC Ferrovial Hochtief OHL Vinci 2 The USA Acciona ACSA Balfour B. Bilfinguer Bouygues FCC Ferrovial Hochtief OHL Skanska Vinci 3 Mexico Acciona ACS Bouygues FCC Ferrovial OHL Sacyr Vinci 4 Caribbean Area ACS Balfour B. Bouygues Carillion Enka FCC Ferrovial Sacyr Vinci 5 Colombia, Venezuela, Ecuador, Peru Acciona ACS Balfour B. Bouygues FCC Ferrovial Hochtief OHL Skanska Vinci Acciona ACS Balfour B. FCC Ferrovial OHL Sacyr Skanska Vinci 9 Eurozone Acciona ACS Balfour B. BAM Bilfinger Bouygues Carillion Eiffage Enka FCC Ferrovial Hochtief NCC OHL Peab Sacyr Skanska Strabag Vinci YIT 1
6 Chile, Argentina, Uruguay Acciona ACS Balfour B. FCC Ferrovial Hochtief OHL Sacyr Skanska Vinci 7 Paraguay, Bolivia ACS Ferrovial 8 Brazil 11 Iceland, Norway, Sweden, Denmark Balfour B. Bilfinger NCC Peab Skanska Vinci YIT 12 Switzerland Balfour B Bilfinger Ferrovial Strabag Vinci 13 Balkan Area Balfour B. Bilfinger Bouygues Enka FCC Ferrovial Hochtief OHL Vinci 10 The UK ACS Balfour B. Bilfinger Bouygues Carillion Eiffage FCC Ferrovial Hochtief Skanska Vinci 14 Eastern Europe Acciona ACS Balfour B. BAM Bilfinger Bouygues Eiffage Enka FCC Ferrovial Hochtief OHL Skanska Strabag Vinci YIT 15 Azerbaijan, Kazakhstan, Tajikistan, Turkmenistan, Uzbekistan, Ukraine Bouygues Enka Ferrovial OHL Strabag Vinci 16 Turkey Balfour B. Bilfinger Enka OHL Vinci 5 2
8 7
17 Libya, Egypt ACS BAM Bouygues Carillion Enka FCC Ferrovial Strabag Vinci 18 Russia Enka FCC Ferrovial Hochtief NCC Vinci YIT
19 Iran, Irak ACS Bouygues 20 Afghanistan, Pakistan Enka Vinci 21 South Korea, Japan Acciona Balfour B. Bouygues Hochtief Vinci
14
18
11
10 12
14 13 15 22
21
16 26 34 17
19 20 25
24 23
33
30
32 31
29 27 27 Australia
22 China, Mongolia ACS Balfour B. Bouygues FCC Ferrovial Hochtief Vinci 25 Arabian Peninsula ACS Balfour B. BAM Bilfinger Bouygues Carillion Enka Hochtief OHL Vinci 26 Israel, Lebanon, Jordan ACS Bouygues Ferrovial Sacyr Vinci
Acciona ACS Balfour B. BAM Bilfinger Bouygues Hochtief OHL Sacyr Vinci 28 New Zealand Balfour B. Bouygues Hochtief Vinci 29 Madagascar Bouygues Vinci
30 Eastern Africa ACS Balfour B. BAM Bouygues Enka Ferrovial Sacyr Vinci 31 South Africa, Mozambique ACS Balfour B. Bilfinger Bouygues Hochtief Vinci 32 Angola, Namibia ACS Bouygues Sacyr Vinci 28
33 Western Africa ACS Balfour B. Bilfinguer Bouygues Eiffage Ferrovial Vinci 34 Maghreb Area Acciona ACS Balfour B. Bouygues FCC Ferrovial OHL Vinci
23 South Eastern Asia Balfour B. BAM Bouygues Hochtief Vinci

24 India Acciona ACS Balfour B. Bouygues Ferrovial Hochtief Vinci
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The Diversification of European Construction Companies

The construction industry has a cyclical profile that is significantly more pronounced than that of the economy as a whole. This is due primarily to the considerable historical dependence on investment in infrastructure and on residential and non-residential building, the main areas of activity of the construction industry. This cyclical nature, causes many companies significant financial difficulties in times of recession, and is the main reason underlying the diversification strategy implemented by a large number of European construction companies in recent years. Although at first glance it may seem that the construction companies have diversified into a wide range of disparate activities with no common denominator, a closer examination shows that these activities complement the construction business with a full range of services throughout the entire infrastructure cycle. These activities have, either directly or indirectly, certain of the following common characteristics: They share clients with the construction activity (Central or Local Government). They have diversified into activities related to long-term contractual management. They are activities that may serve as a source of contracts for the other business lines (construction, maintenance, facilities, concessions). They seek stable/predictable cash flows that enable high leverage of the investment to be made. The activities are financially complementary to the construction business (high EBITDA margins and stable/ predictable cash flows than enable a high leverage of investments as opposed to more modest margins but with a large cash generating ability without leverage as is the case with construction). The construction industry has historically had relatively low margins due to the high number of companies operating in the sector and to the strong competition at a both local and international level. The diversification of the European construction companies is focused on activities with higher margins and more stable/predictable cash flows.
100% 90%
Non - construction revenues / total revenues %
80% Enka 70% ACS 60% 50% Carillion 40% Balfour Beatty Bilnger FCC Sacyr OHL Acciona Eiffage Ferrovial
30% Bouygues 20% Peab 10% Hochtief BAM Strabag 2% Vinci Skanska NCC 4% Yit 6% 8% 10% 12% 14% 16% 18% 20%
EBIT/ total revenues %
16
A review of the margins obtained by our EPoC 2010 confirms this notion. The first three groups in terms of profitability from sales (OHL, Enka and Ferrovial) are also amongst the top ten groups with the greatest revenue diversification. Similarly, Acciona, Sacyr, Eiffage, ACS, FCC, Bilfinger, Carillion and Balfour Beatty present higher average profitability than Yit, NCC, Skanska, Peab, Hochtief, Strabag and Bam because they are more diversified. Vinci and Bouygues present overall profitability from sales of 10.3% and 5.6%, respectively, but as can be observed in the graph below their highest profit margins are to be found in the non-construction activities.
The construction activity of the major listed European construction companies reported margins of between 3% and 5% in most cases in 2010.
EBIT/ Sales Company ENKA YIT OYJ ACS OHL NCC AB VINCI SA FERROVIAL SA SKANSKA AB BOUYGUES SA AVERAGE EPoC 2010 HOCHTIEF AG ACCIONA SA FCC PEAB AB SACYR CARILLION PLC EIFFAGE SA BALFOUR BEATTY PLC BILFINGER BERGER SE STRABAG SE BAM GROEP NV Construction activities 15.3% 5.8% 5.3% 4.8% 4.6% 4.5% 4.2% 3.9% 3.8% 3.7% 3.8% 3.7% 3.6% 3.5% 3.5% 3.3% 3.0% 2.8% 2.7% 2.3% 1.8% Other activities 13.9% N/A 8.0% 30.1% N/A 41.4% 17.3% 11.9% 10.7% 13.3% 0.0% 13.1% 9.8% 7.2% 14.8% 4.4% 13.5% 0.5% 6.2% N/A 0.0% Total 14.2% 5.8% 7.0% 14.3% 4.6% 10.3% 12.4% 4.5% 5.6% 6.5% 3.5% 8.4% 6.4% 3.9% 8.2% 3.8% 7.7% 2.0% 4.3% 2.3% -0.4%
17
Financing the diversification
The diversification process carried out by some of the major listed European construction companies in recent years has required obtaining financing that is still reflected in the consolidated balance sheets of our EPoC 2010.
100% 90%
Construction activity generally does not require significant levels of investment in property, plant and equipment or intangible assets, and needs low levels of working capital. These two factors, together with the traditionally low margins reflected in the construction industry, which would make it impossible to meet high finance costs, mean that groups engaging solely in construction activities have not historically required significant financing to perform their core activities. However, the business diversification implemented by certain of the large European construction groups in recent years has required significant financing, largely because the financing is focused on businesses with more predictable cash flows and, therefore, a greater degree of leverage.
Non - construction revenues / total revenues %
80% Enka 70% ACS 60% 50% 40% Bilnger Carillion Balfour Beatty Bouygues 20% 10% Skanska Strabag (1,000) (500) Peab Hochtief NCC 0 Yit 500 1,000 3,000 5,000 10,000 15,000 20,000 25,000 Vinci Bam OHL Acciona Eiffage FCC Sacyr Ferrovial
30%
Net Debt
18
On analysing the relationship between the net debt of the large listed European construction groups and their sales diversification levels, four categories emerge, the detail of which is as follows: Strabag, Skanska, NCC, Yit, Peab, Hochtief and Bam Groep are examples of groups which engage primarily in construction. They have very low debt levels and, on occasion, even present positive net cash positions. Bouygues and Vinci engage primarily in construction, with very high business volumes and a certain level of diversification that has translated into higher debt. Additionally, on quantifying their absolute values, in view of their size, they are positioned in the high net debt segment. Balfour Beatty, Carillion, Bilfinger and Enka have managed to diversify their traditional construction business without creating significant leverage. The sectors on which Balfour Beatty and Carillion have focused (basically support services and professional services) do not require significant financing. The high margins of Enka have enabled the Turkish group to maintain a favourable cash position. The Spanish groups Ferrovial, Sacyr, ACS, FCC, Acciona and OHL and the French group Eiffage have made a firm commitment to diversifying their business in recent years, especially in the infrastructure concession sector. As opposed to the construction companies engaging in the traditional building business, an analysis of the level of debt of groups operating in the infrastructure sector must take into consideration the fact that they are very long-term projects with predictable and stable cash flows and that, in general, the significant debt from these activities does not have recourse to the group since they are based on project finance schemes in which the only guarantee is the asset being financed.
Net Debt (Millions of Euros) (1,000) Ferrovial SA Vinci SA Eiffage SA Sacyr Vallehermoso SA ACS FCC Acciona SA OHL Bouygues SA Bam Groep NV Hochtief AG Yit Oyj Peab AB NCC AB Bilnger Berger SE Enka Carillion Plc Skanska AB Balfour Beatty Plc Strabag SE 4,000 9,000 14,000 19,000 24,000
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Ferrovial is the EPoC 2010 group with the highest net debt. This debt is concentrated in its infrastructure businesses which are also the most profitable segments. Its airports division had EBITDA of 1,272 million in 2010, but also contributed a negative net cash position of 14,529 million to the groups consolidated balance sheet. The motorway division contributed EBITDA of 630 million to the group in 2010 and net debt of 5,026 million. Similarly, Vincis net debt also arises from the groups non-construction businesses. Vinci Autoroutes contributed positive cash flows of approximately 3,000 million to the group, although it also contributed net debt of 13,965 million to the consolidated balance sheet, which is in contrast to the positive cash position contributed by its Contracting division. Eiffages Concessions and PPPs division contributed net debt of approximately 14,000 million to the consolidated balance sheet in 2010. EBITDA generated by this segment amounted to 1,361 million in 2010.
Sacyrs net debt amounted to 10,995 million at 31 December 2010, of which 45% is to finance its 20% ownership interest in Spanish petrochemical company Repsol. ACSs net debt of amounted to 8,003 million at 31 December 2010, related basically to the financing of its 20% ownership interest in the energy group Iberdrola (4,689 million) and the acquisition of shares of Hochtief (876 million). The remaining net debt of the ACS group is related mainly to infrastructure projects. FCCs net debt (7,749 million) is related basically to its environmental services division (4,353 million), cement division (1,288 million) and energy division (924 million). Accionas net debt amounted to 6,587 million at 31 December 2010 and relates basically to its energy division (5,616 million), which obtained EBITDA of 822 million in 2010. OHLs net debt amounted to 4,420 million at 31 December 2010 and is also concentrated mainly in its concession business, which contributed net debt of 3,822 million. Our analysis is based on the debt as recorded in the 2010 consolidated financial statements of the respective EPoC companies. Consequently, the debt figures analysed do not include debt of non controlling interests that are accounted for using the equity method, joint ventures that are not fully consolidated and PFIs over which the respective company does not have control (that in some cases may be significant).
The companies that have remained focused on the construction activity have lower debt than the companies that have further diversified their portfolio
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Top 20 listed European companies Company profiles
21
Vinci SA
Vinci SA was incorporated in 1899 by French engineers Alexandre Giros and Louis Loucheur and in 2010 it employed 180,000 people in around 100 countries. Its main shareholders are institutional investors, both in France (23.9%) and outside France (43.5%). The remaining shares are controlled by individual shareholders (12%), employees (9%), Qatari Diar Real Estate Investment Company (5.7%) and Financire Pinault (3.8%). Treasury shares represent 2.1% of the total shares of the Group. Vinci SA classifies its portfolio into two main segments: Concessions and Contracting. Concessions The Groups concession business, with a network stretching 4,385 km, represents more than half of Frances motorway network under concession. Vinci Autoroutes is the Groups motorway operator with revenues of 4,259 million, operating profit from ordinary activities of 1,923 million and a workforce of approximately 8,500 people. Vinci Concessions manages a complete portfolio of transport infrastructure and public facility concessions in around 20 countries.
Contracting Vinci Energies, Eurovia and Vinci Construction constitute the Contracting business of Vinci, with 163,000 employees working on 262,000 projects in around 100 countries. Vinci Energies is a European market leader in energy and information systems. With a workforce of 32,000 employees in 21 countries, Vinci Energies generates more than 30% of its total revenues (7,102 million) outside France. Eurovia is a world leader in transport and urban development infrastructure. While it generates more than 90% of its revenue in Europe (primarily in France, Germany, the United Kingdom and Central Europe), Eurovia also holds significant positions in the USA (North Carolina, Florida) and Canada. With revenues of 7,930 million and 40,000 employees, Eurovia has developed an integrated range of expertise in transport and urban development infrastructure, industrial production (Eurovia manages a network of 430 quarries, 45 binder plants, 400 coating plants, 150 recycling facilities and 10 factories producing road equipment) and maintenance and services. Vinci Construction is Frances market leader in construction, combining building, civil engineering, hydraulic engineering and services. With revenues of 13,118 million, operating profit from ordinary activities of 584 million and 64,000 employees, its business consists of three complementary components: A network of French local subsidiaries, through Vinci Construction France, and internationally through Vinci Construction UK, CFE mainly in Benelux, SKE in Germany, Warbud, Prumstay-FCC and SMP in Central Europe, Sogea-Satom in Africa, as well as 30 local branches in Overseas France.
With a presence on five continents, Vinci is still the largest listed European construction company and increased its sales by 8% in 2010
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Highly technical business lines include specialised civil engineering technologies with Soletanche Freyssinet (structures, soil foundations and technologies, nuclear engineering), dredging with DEME and oil and gas infrastructure with Entreprose Contracting. Management of complex projects with Vinci Construction Grands Projects, operating worldwide on major civil engineering and building structures.
Sales by geographical area 1,698 1,297 1,081 1,470 1,844 20,927 911
The order book at December 2010 achieved 25,900 million, 49% of which relates to France and 51% to outside France. By business line, the construction order book amounts to 14,500 million (13 months of average business activity), the energy order book amounts to 6,300 million (9 months of average business activity) and the concessions order book amounts to 5,200 million (8 months of average business activity). Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation 13,060 25,900 23,694 33,376 20,927 12,449 28,150 5,226 5,052 3,429 1,900 1,776 13,025 21,431 21,957 56,413 36,410 20,003 56,413
1,864
2,284
France Central and Eastern Europe United Kingdom Germany Benelux
Rest of Europe America Africa Asia - Pacic
Sales by segment 5,226
28,150
Contracting
Concessions
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Bouygues SA
Bouygues SA was incorporated by Francis Bouygues in 1952, and at December 2010 it employed more than 133,000 people with revenues of 31,225 million (9,719 million on international markets). Its main shareholders are foreign shareholders (40.3%). In addition, other French shareholders control 22.6% of the Group, employees control 19% and SCDM controls 18.1%. Bouygues businesses are focused on two sectors: Construction, which includes Bouygues Construction (building, civil works, energy and services), Bouygues Inmobilier (property) and Colas (roads), and Telecoms/ Media, including TF1 and Bouygues Telecom. Construction Bouygues Construction operates in more than 80 countries and generates nearly half of its sales outside France. With 54,000 employees, sales of 9,002 million and net profit of 538 million in 2010, the Company is primarily present in the European Union, Central and Eastern Europe, Asia-Pacific and Africa. Some of the major projects currently underway or recently completed
include the Gautrain rapid rail link between Pretoria and Johannesburg, which was partially handed over for the 2010 Football World Cup in South Africa, several luxury tourist complexes in Cuba, the Hodariyat Bridge in Abu Dhabi, the Machang Bridge and Pusan Port in South Korea, the Tangiers ferry port and the new container port in Morocco, and the Singapore Sports Hub, the worlds largest sports infrastructure private-public partnership. Bouygues Inmobilier operates in residential and commercial property, retail parks and urban development in France and Europe, employing 1,440 people and achieving sales of 2,409 million in 2010. Colas operates in around 40 countries worldwide, employs close to 65,000 people and achieved sales of 11,592 in 2010. Founded in 1929 and acquired by Bouygues SA in 2000, it has become a leader in the construction and maintenance of transport infrastructure, urban development and recreational facilities. In 2010, France was the origin of 57% of the divisions sales, North America originated 19%, Europe excluding France 16% and Africa/Indian Ocean/Asia 8%. Telecoms/Media The Group manages 43.1% of TF1, Frances leading general-interest television channel with a 24.5% audience share at December 2010. The Group is also present in pay television with channels such as Eurosport and employs more than 8,000 people, with total sales of 2,589 million in 2010. Bouygues Telecom covers 84% of the French population with its 3G+ network and has more than 11,000,000 mobile telephone customers and 808,000 fixed broadband customers. With more than 9,000 employees, the Group sales were 5,621 million in 2010.
Bouygues' diversification prevented it from being affected by the decrease in its construction activities in 2010, which was offset by an increase in telecom and media sales
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Other In 2006, the Bouygues Group acquired the French governments stake in Alstom, and it has subsequently become its largest shareholder (owning 30.77% at March 2011). Alstom is a world leader in rail transport, power generation and transmission infrastructure. Alstom is consolidated as an equity investment in the Groups financial statements. The Groups order book amounts to 22,621 million and is split by business line among Construction (14,200 million, with 7,000 million in 2012 or beyond), Inmobilier (2,280 million) and Roads (6,141 million).
Sales by geographical area 1,351 145 2 1,643 2,301
4,277 21,506
Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation 2,473 22,621 12,122 31,225 21,506 9,719 23,003 8,222 3,701 1,760 1,263 1,071
Construction Telecoms/Media 23,003 France Rest of Europe North America Asia - Pacic Africa South America Other countries
18,620 16,966 35,586
10,607 8,732 16,247 35,586
Sales by segment
8,222
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Hochtief AG
Hochtief increased its sales by 11% in 2010, with profit from operating activities up by 36% on 2009
Incorporated in 1873, Hochtief is the third-largest provider of construction-related services in Europe and market leader in Germany. With more than 70,000 employees and sales of 20,159 million in 2010, the Group is represented in all the world's major markets. ACS controlled more than 40% of Hochtief at April 2011. Among the remaining shareholders, Qatar Holding, LLC Doha holds an additional 10%. Free float of almost 50% is allocated to German investors (23%), North American investors (11%) and investors in the rest of the world. Hochtief segments its business into four divisions: Hochtief Americas The Hochtief Americas division coordinates the activities of the Hochtief companies in the USA and Canada. With more than 7,000 employees and sales of 6,396 million, the Hochtief Americas division, led by its subsidiaries Turner and Flatiron, is present in activities such as educational, healthcare and commercial real estate as well as the area of sustainable building also known as Green Building. Yankee Stadium of New York, Renssealer Polytechnic Institute in Troy (New York), Pacific Street Bridge in Oceanside (California) or Port Mann Bridge in Vancouver are some of the flagship projects of Hochtief Americas.
Hochtief Asia Pacific Sales of 10,340 million, operating earnings of 661 million and 46,376 employees make Hochtief Asia Pacific the leading division of the Group. Hochtief is present in Asia and Australia via its majority shareholding in the Leighton Group. Its services encompass building and infrastructure construction, raw materials extraction and concessions, project development, and maintenance and services. Infrastructure and Construction makes Hochtief leader in Australia and key supplier in the Gulf States. Contract Mining constitutes a profitable business with projects under contract for periods of up to 30 years. One of these contracts is the largest contract mining project in the world. Hochtief Europe The Hochtief Europe division plans, develops, implements, operates and manages real estate and infrastructure facilities. Hochtief Europe sales exceeded 2,300 million in 2010, with more than 9,200 employees. The order book at December 2010 achieved 47,490 million (more than 24 months of activity). By region, 71% is allocated to Africa and Asia-Pacific, 17% is allocated to America and the rest to Europe, with a special focus on Germany (8%). Other The remaining business of the Group includes basically Services and Concession. Hochtief Concessions includes airports, roads, social infrastructure and further public-private partnership (PPP) projects. Hochtief Concessions sales amounted to 110 million, with more than 300 employees in 2010.
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Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation 772 47,490 4,451 20,159 1,642 4,264 3,373 7,349 14,986 5,868 9,118 14,986
Sales by geographical area 7 1,642 977
8,302 6,891
2,340 Germany Rest of Europe America Asia Australia Africa
Sales by segment
18,517 19,312 847 1,643 715 546 288

2,377
1,047
6,396
10,339 Hochtief Americas Hochtief Asia - Pacic Hochtief Europe Other activities
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ACS Group
ACS commenced operations in 1983, and has become a world leader in construction and services activities with more than 140,000 employees worldwide. The Groups main shareholders are Spanish institutional investors (Corporacin Financiera Alba 18%, Corporacin Financiera Alcor 14% and Inversiones Vesan 13%). The Group portfolio is divided as follows: Construction The construction business of the Group is headed by Dragados and is structured into civil works projects (75% of total construction group revenue, including highways, railways, hydraulic works, airport works and ports) and building projects (including residential building, with 6% of total construction revenues, and non-residential building, with 19% of total construction revenues). ACS is construction leader in Spain, has a long track record in South America and is developing a strong presence in countries such as the United States and Poland. In 2010, 33% of construction sales (5,593 million) were obtained abroad.
Concessions The concession business of the Group is managed by Iridium and achieved sales of 110 million in 2010. Environment The Environment business of the Group includes activities related to the conservation and improvement of the environment (58% of the total revenues of this area) and the outsourcing of the facility maintenance of buildings (rest of revenues). Approximately 11% of the division sales (2,562 million) were obtained abroad. Industrial Services Industrial Services sales of ACS amounted to 7,158 million in 2010 (37% of which were international sales). The main projects accomplished relate to maintenance activities of electricity, gas and water distribution networks, telecommunications systems, railway installations, climate control systems, engineering, urban services such as traffic and transport systems, integral maintenance of public infrastructures, wind farms or industrial solar thermal energy plants. Strategic Investments The Group holds significant investments in construction groups, basically Hochtief (approximately 46 % at June 2011) and various companies such as Iberdrola (investment of 19% in the largest energy company in Spain) and Abertis (10% indirect investment in this international group which manages mobility and telecommunications infrastructures through toll roads, car parks, airport and logistics parks). The order book of the Group totalled 28,777 million at December 2010, and it is segmented by business line into Construction (11,087 million), Industrial Services (6,846 million) and Environment (10,844 million).
After taking control of Hochtief in 2011, ACS became the leading European construction group based on sales of EPoC 2010
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Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation 8,003 28,777 10,773 15,380 10,488 4,892 5,593 9,787 1,500 1,077 1,355 1,312 4,443 10,771 18,971 34,185 15,995 18,190 34,185
Sales by geographical area 1,562
2,139
1,191
10,488
Spain Rest of European Union
Other OECD countries Other countries
Sales by segment (43)
5,593 7,158
110
2,562 Construction Concessions Environment Industrial Services Other activities
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Eiffage
With profit from operating activities of over 1,000 million in 2010, Eiffage ranks within the TOP 5 of the EPoC 2010 in terms of sales
Incorporated in 1844 as a family owned company, a century and a half later Eiffage has become one of the top five building companies in Europe. More than 70,000 employees helped Eiffage to generate revenue of more than 13,000 million (15% through international projects). Eiffages international presence is basically focused on European countries. Senegal provided sales of 100 million in 2010. Employees play a fundamental role in the shareholder structure of Eiffage. Around 85% of Eiffage's employees in France are also Group shareholders and own 26% of the Company. The remaining shareholders are mainly institutional investors (FSI 20%, Eiffaime 8% and GROUPAMA 6%) and free float (36%). Eiffage operates through five business lines: Concessions and public-private partnerships (PPPs) Eiffage Concessions manages and operates motorways and other infrastructures, such as the Millau Viaduct, the
Norscut motorway in Portugal and the APRR motorways network. The Groups concession business achieved sales of 2,310 million in 2010, with EBITDA over sales of 68% and net debt of almost 14,000 million. Construction Construction sales amounted to 3,656 million in 2010 with a mix of public-private sales of 47%/53%. Public Works Public Works sales were 3,865 million in 2010, basically in the development of roads which contributes over 61% of total division sales. Energy The energy business of the Group provided sales of 3,003 million in 2010 and it is being reorganised in order to develop new offers, particularly in growth markets around new energy sources and energy performance contracts. Metal The metal business of the Group obtained sales of 707 million in 2010 and carried out metal construction work (41% of division sales), maintenance and industrial works (39% of division sales) and special buildings (19%), with customers in the public and private sector in a proportion of 24%/76%. The order Book of the Group achieved 10,735 million and can be broken down by segment into Construction (4,620 million), Public Works (2,980 million), Energy (2,265 million) and Metal (870 million).
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Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data 13,553 11,536 2,017 7,521 6,032 1,852 1,041 326 232 2,501 15,622 7,870 25,993 19,716 6,277 25,993
Sales by geographical area 100 1,917
11,536 France Rest of Europe Africa
Sales by segment 12 707
3,003
3,656
2,310 3,865
Net debt Order book Market capitalisation
12,494 10,735 3,806

Construction Concessions Public works Energy Holding Metal
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Skanska
The origins of the Company date back to 1887 when Aktiebolaget Sknska Cementgjuteriet was established and started manufacturing concrete products. More than a century later, Skanska obtains approximately 80% of its sales outside Sweden. Skanskas main shareholders are Swedish companies and institutions that together own 42% of the Group. Other Swedish investors control 25% of the Group. Shareholders abroad control 23% of Skanska and the rest of the shares are in the hands of the public sector and relief and interest organisations. In the USA, which is its single largest market, Skanska develops building and civil engineering projects, and is also present in the USA Public-Private Partnerships (PPP) segment.
In the Nordic region, the UK, the Czech Republic, Slovakia and Poland, its operations cover the construction and investment businesses. In Latin America, Skanska is mainly active in the oil, gas and energy sector and in PPPs. The structure of the Group separates construction, which represents 93% of the Groups total sales in 2010, and the remaining businesses, where we can differentiate basically residential development and commercial property development. Skanska's construction services combine the construction of high buildings or bridges as well as private homes in both the private and public sector. Residential development started more than 4,000 houses and sold more than 3,000 in 2010. In 2010 the Company also entered the UK market. Total sales achieved by this division reached over 700 million. Commercial property development started 14 new projects in 2010. The order book of the Group totalled 15,421 million, 47% of which was allocated to the Nordic region, 25% to the USA and the rest of the world, most notably the UK, Latin America, Poland and the Czech Republic.
Skanska obtained almost 80% of its sales abroad in 2010, mainly in the USA, the Nordic countries, Eastern Europe, South America and the UK
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Key Data (December 2010) Millions of euros Assets
Sales by geographical area
2,435
Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation
1,733 6,931 8,664

5,142
2,318 445
5,283
5,901 8,664
Sweden Rest of Europe America
12,815 2,435 10,380 11,871 944 735 572 422 422

Sales by segment 944
(308) 15,421 6,040

Construction
11,871 Other activities
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Strabag SE
The net cash position of Strabag Se reached 669 million in 2010, the highest net cash position among the EPoC 2010
Strabag SEs history dates back to 1835, but almost two centuries later the Group has become one of the leading construction players in Europe. The Group obtained sales of 12,777 million in 2010, mainly in its core markets, Austria and Germany. In addition, via its numerous subsidiaries, Strabag SE is present in all the countries in Eastern and South-East Europe, in selected markets in Western Europe, on the Arabian Peninsula, as well as in Canada, Chile, China and India. Strabag SE generates more than 70% of its construction output in markets in which it holds one of the top three positions. These include the Czech Republic, Hungary, Slovakia, Poland and Romania. Strabag SEs main shareholders are the Haselsteiner Group, Rasperia Trading, the Raiffeisen Group and the Uniqa Group, which control 29.5%, 17%, 15.5% and 15% of the Group, respectively. Free float of the Company represents 23% of the total shares of the Group. Its portfolio is divided into Building Construction & Civil Engineering, Transportation Infrastructures and Special Divisions and Concessions. Building Construction & Civil Engineering The Building Construction & Civil Engineering segment of the Group is the basic business field of Strabag SE.
The range of services includes a wide variety of projects of different sizes, encompassing excavation, power plant construction, commercial, industrial and residential buildings and major bridge work. Additionally, this segment includes all activities in the field of environmental technology. Division sales amounted to 4,279 million in 2010, with an operating margin of 3.9% and a workforce of more than 18,000 employees. Transportation Infrastructures The Transportation Infrastructures segment covers all activities in road and railway construction and civil engineering and in building materials production, the exploitation of raw materials, as well as sports and leisure facilities. Transportation Infrastructures sales amounted to approximately 5,810 million in 2010, with an operating margin of 3.2% and 30,059 employees. Special Divisions and Concessions This segment comprises tunnelling works, ground engineering, project development, Public-Private Partnership projects as well as property and facility services. Strabag SE is one of the most highly renowned tunnel builders in Europe, with years of experience in projects all over the world. Sales of this segment amounted to 2,518 million in 2010, with a workforce of almost 20,000 people and zero profit at December 2010 due to high losses in international projects (e.g. Libya) and tunnelling projects in Hungary and Sweden. The Groups order book achieved 14,739 million at December 2010 and by division is allocated to Building (approximately 5,700 million), Transportation Infrastructures (approximately 4,700 million) and Special Divisions and Concessions (approximately 4,300 million).
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Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation (669) 14,739 2,516 12,777 1,907 10,870 12,777 735 299 188 175 3,232 2,364 4,345 6,037 10,382
3,020
5,051
580 867
1,352
4,786 10,382
Germany Austria Poland
1,907 Czech Republic Hungary Other countries
Sales by segment 170 2,518 4,279
5,810
Building Construction & Civil Engineering Transportation Infrastructures
Special Division & Concessions Other activities
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Balfour Beatty
Balfour Beatty was founded by George Balfour, a Scottish mechanical engineer, and Andrew Beatty, an English chartered accountant. The company described itself as "general and electrical engineers, contractors, operating managers for tramways, railways and lighting properties and for the promoting of new enterprises. At December 2010, around half of the Groups revenues come from outside of the UK, with over 30% from the USA and 11% from the rest of the world. Its main shareholders are British institutional investors, most notably the following, with more than 3% of shares: Standard Life Investments Limited (7.88%), Prudential PLC. (5%), Blackrock Inc. (5%), Legal & General Group Plc. (3.92%) and Axa SA (3.21%). Balfour Beattys activity is segmented into four lines: Construction Services, Professional Services, Support Services and Infrastructure Investments. Construction services The construction services of the Group include building, design, construction management, refurbishment and fit-out, mechanical and electrical services, civil
engineering, ground engineering and rail engineering. Sales in 2010 achieved 7,860 million, with a margin of 3.1%. By geographical area, the UK represents 51% of the segment sales, the USA 31% and the rest of the world 18%. Professional services The acquisition of Parsons Brinckerhoff in 2009 transformed the Groups capabilities in this business line that includes project management, architectural services, project design, technical services, planning or consultancy. Sales of this segment amounted to 1,880 million in 2010, with a margin of 0.6%. 53% of total professional services sales are obtained in the USA and 18% in the UK. Support services The support services of the Group include facilities management and business services outsourcing, upgrade and maintenance of water, gas and electricity networks, highway network management, operation and maintenance and rail renewals. Support services sales achieved 1,672 million in 2010, with a margin of 2.7%. Infrastructure investments This segment operates a portfolio of long-term PPP concessions, primarily in the education, health and roads/street lighting activities. The Group manages 30 concessions in the UK, 18 in the USA and 1 in Singapore. The Groups order book reached 17,719 million, of which Construction Services account for 60%, Support Services 30% and Professional Services 10%. By year, 52% of the total order book will be accrued in 2012 and beyond.
Balfour Beatty's professional services segment tripled its sales volume in 2010, consolidating the acquisition of Parsons Brinckerhoff in 2009
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Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation (604) 17,719 2,637 12,288 5,820 6,468 7,860 4,428 422 240 167 167 1,349 1,465 3,441 6,255 3,384 2,871 6,255
2,886
5,820
3,582
United Kingdom
America
Not specied
Sales by segment 876 1,672
1,880
7,860
Construction services Professional services
Support services Other activities
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Ferrovial
Ferrovial's EBITDA reached 2,514 million at December 2010, placing the Spanish group as the third highest cash generator of the EPoC 2010
Rafael del Pino y Moreno founded Ferrovial in 1952. Since then, the Group has become the world's leading private investor in transportation infrastructures, with a workforce of approximately 70,000 employees. The only shareholder who controls more than 10% of the Group is Portman Baela, S.L. (controlled by the Del Pino family), which holds 44.6% of the Group shares. The Company manages key infrastructure assets such as Canada's 407 ETR highway and London's Heathrow Airport. It also provides municipal services to more than 800 cities and towns in Spain and to the millions who use the Madrid metro system, and the hundreds of kilometres of streets and highways where Amey performs maintenance services in the United Kingdom. Ferrovial's activities are divided into four business lines: Services Ferrovial Services has become one of the leading European companies providing environmental
management and maintenance services to public and private installations and infrastructures. Main brands are Ferroser and Cespa in Spain and Amey in the UK. Sales amounted to 3,896 million in 2010, with 62% obtained abroad. EBITDA achieved by Ferrovial Services was more than 400 million in 2010. Construction Ferrovial is involved in all areas of construction, including civil works and building, in Spain and abroad, with a solid presence in Poland or the USA. Main brands are Ferrovial-Agroman in Spain, Budimex in Poland or Webber in the USA. Sales totalled 4,525 million in 2010, with EBITDA of 231 million. Airports The airports of Heathrow, Stansted, Glasgow, Edinburgh, Aberdeen and Southampton (in the UK) and Antofagasta (Chile) obtained revenues of 2,799 million and EBITDA of 1,272 million for the Group in 2010. Net debt of the Airport division was 14,529 at December 2010. Highways Toll road revenues in 2010 amounted to 869 million, with EBITDA of 630 million. 407 ETR generated revenues of 456 million, with 29% growth on 2009. Traffic on this highway grew by 6% and EBITDA by 32%. This subsidiary is consolidated by the equity method since the last quarter of 2010. Net debt of the Groups Toll Road division was 5,026 at December 2010. The Groups order book achieved 22,189 million in 2010 and is distributed between Services (12,003 million) and Construction (10,186 million, 65% of which will be obtained abroad).
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Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data 12,169 3,765 6,824 28,596 7,867 43,287 35,465 7,822
2,007 4,203 1,170
43,287
1,024
3,765 United Kingdom Spain The United States Poland Other countries
Sales by segment
8,404
869
80
4,525 7,644 2,514 1,514 1,815 2,163

2,799 3,896
4,525
Net debt Order book Market capitalisation
19,789 22,189 6,951

Services Construction Airports Highways Others
39
FCC
Originally founded as a construction company in 1900, eleven years later FCC branched out into the provision of municipal services with a contract to clean and maintain Barcelona's sewer network. Since then, FCC has continued diversifying its portfolio geographically and by business line. FCCs main shareholder is Esther Koplowitz, through the Company B 1998, S.L. that controls more than 50% of the Group. The remaining Group shares are controlled by domestic institutions (13.7%), treasury stock (10%), foreign institutions (9.5%) and others (13.1%). The business portfolio of FCC includes environmental services and water management, construction of large infrastructure, cement production, and renewable energy production. The Group has a presence in more than 50 countries worldwide and over 46% of its revenue comes from outside Spain (mainly Europe and the USA). Revenue in 2010 amounted to 12,114 million, with 92,293 employees. Environmental Services Environmental services and water management contributed sales of 3,672 million to the Group in 2010 (36% of which were obtained abroad, mainly in the UK and Central & Eastern Europe). EBIT achieved by the Environmental Services segment was 324 million.
Versia The rest of the services provided by the Group are included in the segment called Versia. Revenue obtained by this segment in 2010 was 846 million, with EBIT of 193 million. By business line, logistics represented 34% of total revenues, handling 29% and urban furniture 15%. Other sources of revenue are parking services, vehicle testing and maintenance. 33% of sales were obtained abroad (mainly Western Europe, giving rise to 26% of division sales). Construction Construction sales of FCC amounted to 6,694 million in 2010, with EBIT of 242 million. By type of business, civil works represented 71% of the segment sales, non-residential building 22% and residential building 7%. The domestic market contributed 45% of the segment sales. Cement The Cement division of FCC leads the Spanish market, where it obtained 67% of its 2010 sales (887 million). The Groups order book amounted to 35,309 million and is distributed between Environmental Services (25,325 million, 8,000 million of which come from abroad) and Construction (9,984 million, 45% of which come from abroad).
FCC's significant order book will secure the presence of the Spanish company in the top ten in future editions of the EPoC
40
Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation 7,749 35,309 2,931 12,114 6,541 5,573 6,694 5,420 3,206 10,963 13,394 8,585
Sales by geographical area 279 502 613 724
724
21,979
6,541 1,115
1,616
7,810 21,979
Spain Austria Eastern Europe Germany United Kingdom Western Europe The United States Other countries
Sales by segment 887 15
3,672
1,435 774 314 301

6,694 846
Environmental Services Versia Construction
Cement Other activities
41
Bilfinger Berger SE
Bilfinger Berger SE was established in 1975 through the merger of three construction companies, although its historical roots go back to 1880. Its main shareholders are European institutional investors, most notably several German investors with a 31% interest and several British investors with 23%. The Bilfinger Berger Group's range of activities comprises the Industrial Services, Power Services, Building and Facility Services and Construction business segments, with overall sales of 8,007 million and more than 58,000 employees and a presence on five continents. Industrial Services Bilfinger Berger Industrial Services is specialised in the repair, maintenance and modernisation of industrial plants, and grew significantly with the acquisition in 2009 of MCE in Austria. Sales in 2010 of this segment reached almost 3,000 million, with EBIT of 134 million. The subgroup is active in many European countries and in the USA. Power Services Bilfinger Berger Power Services is focused on maintenance, repair, efficiency enhancements and lifetime extensions of existing plants as well as the manufacture and assembly of components for power plant construction.
With sales in 2010 of 1,106 million and EBIT of 83 million, 52% of sales in this segment were obtained in Germany, 24% in the rest of Europe, 15% in Africa and 8% in Asia. Building and Facility Services The Building and Facility Services business segment comprises facility management services in Europe and the USA, building construction in Germany, and construction-related services in Nigeria. 59% of the total sales of this segment (2,333 million) were obtained in Germany and 20% in Africa. The remaining sales were obtained in other European countries (13%) and America (8%), obtaining overall EBIT of 80 million. Construction The Construction segment of the Group is present in Germany (35% of sales) and other European countries (40%). Outside Europe, the Group acts primarily as technology partner for local companies. Sales of this segment amounted to 1,725 million in 2010, with EBIT of 31 million. Non-European sales of this segment originated mainly in Asia (20%) and the rest of the world (5%). The Groups order book achieved 8,585 million at December 2010 (Industrial Services 31%, Power Services 16%, Building and Facility Services 26% and Construction 27%).
Bilfinger is one of the only three EPoCs that reached sales of over 500 million at December 2010 in Europe, America, Africa and Asia-Oceania
42
Sales by geographical area 483 26 (16) 635
4,460 3,477 7,937

591 3,358
1,812 2,511 3,614 7,937

Germany Rest of Europe America Africa Asia Australia Other countries 3,030
8,007 3,358 4,649 4,058 3,949 511 343 286 284
Sales by segment (89) 1,725 2,932
2,333
48 8,585 2,852
Industrial Services Power Services Building and Facility Services
1,106
Construction Other activities
43
Bam Groep
The history of Royal Bam Groep NV goes all the way back to 12 May 1869. On that date, Adam van der Wal opened a carpentry business in Groot-Ammers - a rural village in the Alblasserwaard region, which lies east of Rotterdam. Since then, Bam Groep has become the main Dutch constructor with overall sales of 7,611 million in 2010. Three institutional investors and one private investor hold interests of 5% or more in Bam Groep. ING Groep NV controls 10.3% of the Group, A. Van Herk 9.3%, Delta Lloyd (Aviva Plc.) 6.0% and Governance for Owners Llp. 5.0%. The Group activity portfolio is divided into Construction, Property Investments, Civil Engineering and Rest of business. Construction Bam Utiliteitsbouw and Bam Woningbouw are the flagship companies of the Group in the construction segment. Bam Utiliteitsbouw operates in the Dutch non-residential construction market, with around
1,800 employees, and Bam Woningbouw is active in all sectors of the Dutch residential market, namely project development, new build, maintenance and renovation and the redesign of buildings, with around 2,500 employees. Construction sales amounted to 3,211 million in 2010, with an average 3% margin. Geographically, 43% of sales were derived from the Netherlands, 38% from the UK and 14% from Germany. Property Investments Sales of 593 million were obtained mostly in the Netherlands (88%). Civil Engineering Civil Engineering sales amounted to 3,659 million in 2010, with a 2.8% average margin. The Dutch market represented 40% of the total sales of the segment, the German market represented 22% and the Belgian market 18%. Among the rest of the world, we can highlight the presence of the Group in Ireland. Rest of business The Group maintains in its portfolio 32 PPP contracts (11 under construction at December 2010). Mechanical and electrical contracting amounted to 281 million in 2010, showing an 8% increase compared to 2009. Consultancy and engineering generated revenue of 210 million in 2010, with a margin of 6.5%. The Groups order book totalled 12,100 million in 2010. 6,300 million will be executed in 2012 and 5,800 million thereafter. The order book by segment is mostly attributable to construction (4,657 million), property (1,394 million) and civil engineering (5,517 million).
After the impairment losses recognised by Bam Groep in 2010, the group expects to obtain a margin before tax of 2% in 2011
44
Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation 1,357 12,100 1,261 7,611 3,397 4,214 7,225 386 206 (30) 18 15 1,102 2,316 3,716 7,134 2,560 4,574 7,134
Sales by geographical area 336 677 287
854 3,397
2,060
United Kingdom Rest of Europe America
Asia / Oceania Africa Other countries
Sales by segment 148
3,211 3,659
593 Construction Property Investments Civil Engineering Other activities
45
Acciona
Acciona was set up over a century ago and employs over 30,000 employees with a presence in more than 30 countries on five continents. Accionas main shareholder is Grupo Entrecanales, S.A., which controlled almost 60% of the Group at December 2010. Acciona divides its portfolio into the following business divisions: Infrastructure Acciona Infrastructure is the longest-standing company in the Acciona Group. It was founded in 1850 and is well-established in Spain. On an international level, it participated in significant projects such as the Petronas Towers in Malaysia, the Ting Kau Bridge in China and the Central Coastal Road Network in Chile. Acciona's Infrastructure segment sales amounted to almost 3,000 million in 2010. With EBITDA of 204 million, Acciona infrastructure has a presence in Canada, Mexico, Chile, Brazil, Colombia, Italy, Spain, Poland and Australia. Real Estate Created in 1989, the Real Estate business division had sales of 204 million in 2010 with an EBITDA/ Sales ratio of over 10%.
Energy Acciona Energy is active in all the main clean energies (concentrated solar power, solar, wind, conventional hydro, mini hydro special regime, biomass or biofuels), and is ranked as the number one wind farm developer and builder in the world, and seventh in the world as a manufacturer of wind turbines using their own technology. Energy segment sales amounted to 1,497 million in 2010, with EBITDA of 821 million and a presence in Canada, the USA, Mexico, Chile, Italy, Spain, Poland, India and Australia. Water and Environmental & Urban Services The Water business line is headed by Acciona Agua, which focuses on the treatment of water including the project design and construction of desalination plants and waste water treatment plants, operation and maintenance, the supply of drinking water or the sanitation of cities. The Environmental and Urban Services division manages services related to the urban environment and environmental protection through activities such as street cleaning, construction, financing and maintenance of car parks and hospitals or burial services. Sales of Water and Environmental & Urban Services reached 732 million in 2010, with EBITDA of 60 million this divisin has a presence in the USA, Mexico, Chile, Brazil, Spain, Italy and Australia. Logistics & Transport Services Acciona Logistic and Transport Services includes companies such as Acciona Trasmediterranea, the Spanish leader of the sea transportation of goods and passengers; Acciona Airport Services, providing airport and handling management services; and Acciona Logistica, Acciona Rail Services, Acciona Forwarding and Acciona Distribution for road and rail transport, logistics and distribution. Sales of this segment amounted to 777 million in 2010, with EBITDA of 74 million.
Acciona obtains more than half of its revenues from non-construction activities and is ranked seventh among the EPoC 2010 in terms of market capitalisation
46
Other business Acciona has developed other lines of business, including financial services, fund management and stock broking through Bestinver; the production of top quality wines through Hijos de Antonio Barcel; and the design and development of exhibitions, museums and shows through GPD. Sales of this segment amounted to 120 million in 2010, with EBITDA of 46 million. The Group's order book totalled 12,070 million in 2010 and, by segment, the construction order book amounts to 7,258 million (38% internationally) and the water order book amounts to 4,812 million (39% internationally).
Sales by geographical area 182 760
987
4,334
Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation 6,587 12,070 4,667 6,263 4,334 1,929 3,121 3,142 1,211 527 184 167 6,063 7,039 7,400 20,502 13,615 6,887 20,502
Spain Rest of European Union
Rest of OECD countries Other countries
Sales by segment (68) 777
732
3,121
1,497
204 Infrastructure Real Estate Energy Water and Environmental & Urban Services Logistic & Transport Services Other activities
47
Carillion
Carillion's Middle East Construction Services obtained over 500 million in 2010, with an operating margin of 10%
Carillion Plc. was created from the stock split of Tarmac Plc in 1999, when the aggregates division of the combined group was separated from the business services and construction units. Twelve years later, Carillion Plc. continues being one of the UK's leading support services and construction groups, employing around 50,000 people. Group sales in 2010 amounted to approximately 6,000 million, with operations in the UK, other European countries, Canada, the Middle East, North Africa and the Caribbean. Three institutional investors hold interests of 5% or more in Carillion Plc. Schroder Plc. controls 11.3% of the Group, Standard Life Investments 6.8% and Ameriprise Financial Inc. 5.2%. Six other institutional investors hold interests of 3% or more in the Group. Carillions portfolio includes Construction works (where the Group differentiates the Middle East from the rest of the world) and Support Services.
Support Services In this segment the Group includes various activities, most notably facilities management, facilities services, rail services, road maintenance, utility services and consultancy businesses. Support Services division sales amounted to approximately 2,500 million in 2010, with an operating margin of approximately 5%. Middle East Construction Services In this segment the Group includes building and civil engineering activities in the Middle East and North Africa. The Group is mainly present in Abu Dhabi, Oman, Qatar and Dubai. Sales of this segment reached over 500 million in 2010, with an operating margin of 10%. Construction Services (excluding the Middle East) In this segment the Group includes building and civil engineering activities in the UK (77% of total revenue of the division) as well as construction activities in Canada and the Caribbean. Segment sales amounted to almost 2,600 million in 2010, with a 2% average margin. The Group's order book totalled 21,216 million at December 2010. By segment we can highlight the Support Services order book (13,639 million), Middle East Construction Services (1,162 million), Rest of World Construction Services (3,264 million) and PPP projects (3,147 million).
48
1,927 1,737
586
3,664
1,006 591 2,067 3,664

4,476
United Kingdom Middle East
Canada and Caribbean Area Other countries
5,991 4,476 1,515 3,169 2,822 265 227 178 171

575 2,594 2,582 Sales by segment 240
(140) 21,216 1,819
Support Services Middle East Construction Services
Other Construction Services Private Finance
49
NCC
NCC's history starts in 1987, but in less than 25 years the Group has become one of the leading construction and property development companies in the Nordic region. The Group had overall sales of 5,182 million in 2010, with approximately 17,000 employees. With more than 30,000 shareholders, only one shareholder owns an interest of 10% or more in the share capital of the NCC Group. Nordstjernan AB is the largest individual shareholder, accounting for 23% of the share capital and 64% of the voting rights. NCC is present in Sweden, Finland, Norway and Denmark, and has also executed works in Germany, Russia and the other countries in the Baltic Sea area. Its portfolio is divided into Construction, Roads, Housing and Property Development. Construction The Groups Construction division is specialised in the building of residential and office properties, other buildings, industrial facilities, roads or civil engineering structures. Construction sales amounted to 3,202 million in 2010, with an operating margin of 4.3%. Geographically, 62% of total sales were obtained in Sweden, 8% in Denmark, 17% in Finland and 13% in Norway.
Roads NCC Roads engages in the production of aggregates and asphalt, together with paving operations and road services. NCC Roads is the leading company in the Nordic market. Some operations are also conducted in the Saint Petersburg area. In addition, aggregate products are exported to countries around the North Sea and the Baltic Sea. Road sales amounted to approximately 1,100 million in 2010, with an operating margin of 3.3%. Housing NCC Housing develops and sells housing in selected markets in the Nordic region, the Baltic countries and Germany. Housing sales amounted to approximately 700 million in 2010, with an operating margin of 4.8%. Property Development NCC Property Development develops and sells commercial properties in indentified areas of growth in Nordic markets. Sales amounted to approximately 200 million in 2010, with an operating margin of 5.8%. The Group's order book (over 4,200 million) is allocated mainly to Sweden (60%), Finland (16%), Norway (11%) and Denmark (10%).
The second Swedish construction company in terms of sales volume obtained an operating margin of 4.6% in 2010, above the EPoC 2010 average (3.7%)
50
Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation 90 4,239 1,965 5,182 2,782 2,400 5,182 236 236 160 160 907 758 1,803 3,468 640 2,828 3,468
821
1,074
2,782
505
Sweden Denmark
Finland and rest of Baltic countries Norway
Sales by segment 211 (68) 717
1,120
3,202
Construction Roads Housing
Property Development Other activities
51
OHL
OHL is the result of the merger of Obrascon, Huarte and Lain founded in 1911, 1927 and 1963 respectively. Since then, OHL has become the fifth Spanish construction group with sales of 4,910 million in 2010. The Group is present in 27 countries across the five continents. Inmobiliaria Espacio, S.A. controls 57% of the Group, being the only investor that holds interests of 10% or more in the Group. The OHL Group is composed of four divisions: Concession Infrastructures, International Construction, National Construction, and Other Activities. Concession Infrastructures The Concession Infrastructures division of the Group develops, manages and promotes all types of transportation infrastructure basically in Mexico, Brazil, Spain, Chile and Peru. OHL is the seventh-largest highways concessionaire in the world and maintains a portfolio of 28 concessions with 23 highways (4,417 km), 2 railways, 2 ports and 1 airport.
The Concession Infrastructures Division obtained sales of 1,509 million in 2010, with EBITDA of 747 million. International Construction The International Construction Division obtained sales of 1,829 million in 2010, with EBITDA of 150 million. Half of the Division sales were obtained in Mexico and the USA, 18% in Central Europe and 17% in Qatar. The Group is also present in Peru, Colombia and Chile. National Construction The National Construction Division obtained sales of 1,241 million in 2010, with EBITDA of 90 million. Other Activities The remaining revenues of OHL have their origin in engineering and construction turn-key projects for industrial facilities, the promotion and exploitation of tourist infrastructures and resorts, and environmental services such as the desalination of sea and brackish waters, the purification of urban and industrial waters and the treatment of potable water. The Other Activities Division obtained sales of 331 million in 2010, with EBITDA of 18 million. The Group's order book totalled 84,307 million at December 2010, with 97% of this order book attributable to the concession division. 5,760 million will be executed in 2011 and, by country, Mexico accounts for 49% of the Groups order book, Brazil 30% and Spain 10%.
OHL leads the EPoC 2010 ranking of profitability by sales with an operating margin of 14.3%
52
Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation 4,420 4,910 1,496 3,414 2,025 6,717 8,582 4,020 12,602
Sales by geographical area 172 271 381 1,496 107 35 28 51
476
939
3,860 12,602
954
Spain Mexico Brazil Eastern Europe The United States Algeria
Qatar Chile Peru Argentina Other countries
Sales by segment
3,071
330
1,839 1,005
1,241 1,830
700 252 196
1,509
84,307 2,763
International Construction Concession infrastructures National Construction Other activities
53
Sacyr
Sacyr Sacyr is the result of the merger of Sacyr and Vallehermoso back in 2003. In 2010, the Group obtained sales of 4,820 million (with 31% of sales obtained abroad) and had EBITDA of 572 million. Shareholders of the Group that own interests of 10% or more are Prilou, S.L., which controls 13.2%, Luis Rivero, who controls an additional 13.1%, a syndicate of banks that controls 12.8% of the Group and Juan Abell, who controls 10% through three institutional investors. Its portfolio is divided into Construction, Services and rest of business. Construction The Sacyr Group carries out its construction activity in all the areas of civil engineering and building. It is involved in some of the world's most important projects in terms of complexity, size and technical difficulty, such as the expansion of the Panama Canal and the construction of the suspension bridge over the Strait of Messina. In connection with the type of works carried out by the Group, it operates in the construction of roads, rails, hydraulics, airports, ports and urbanisation projects, high-speed railway lines, metros, airports, motorways, highways, etc., and has a major presence in both public and private construction works. Construction sales of the Group amounted to 2,819 million in 2010, with EBITDA of 171 million. Geographically, 55% of sales were obtained in Spain.
Services Valoriza is the flagship brand of the Sacyr Groups services division. This business line operates in environmental works (municipal services, waste management, landscape restoration and environmental projects), water (treatment, desalination, purification and revitalisation of water), energy (engineering projects, construction and management of biomass and cogeneration plants, energy efficiency, solar power, and promotion, construction and management of wind farms) and miscellaneous services (integral building maintenance, motorway and dual carriageway maintenance, service areas on motorways and dual carriageways, healthcare services and integral hospital management). Services sales amounted to 1,005 million in 2010, with EBITDA of 149 million. Water and Environmental services sales amounted to approximately 300 million each, miscellaneous services sales were 226 million and Energy services sales reached approximately 179 million. Rest of business The remaining revenues of the Group relate to residential development, rental property and concessions. Sales for these activities were approximately 1,000 million in 2010 with EBITDA of 251 million. Within its concession business, the Group manages 1,425 km of highways, hospitals, intermodal transfer facilities and motorway service areas in Spain, Italy, Portugal, Costa Rica, Chile and Ireland. Sacyr is also the main shareholder of the Spanish petrochemical company Repsol, with a 20% interest. The Group's order book totalled 51,531 million at December 2010. The concession division represents 57.5% of the total order book, the services division represents 23.3% (30% abroad), and construction represents 14% (72% abroad). The international order book represents 58% of the Groups total order book.
Sacyr is the main shareholder of Repsol, since it controls 20% of the Spanish petrochemical group
54
Sales by geographical area 164 331 30 122
14,677 6,436 21,113

847
3,791 5,623 11,699 21,113

3,326
Spain Rest of Europe America
Africa Australia Other countries
4,820 3,326
Sales by segment
1,494 2,819 2,001

250 746
572 394 211

1,005 2,819
204
10,995 51,531 3,530

Construction Services Rental Properties Other activities
55
Peab
Peab was set up in 1959 by two brothers, Erik and Mats Paulsson, who were then aged 16 and 14, respectively. Fifty years later, the Group has sales of over 4,000 million per year, EBITDA of 234 million in 2010 and almost 14,000 employees. The main shareholders of the Group are the Paulsson family, which controls 30% of the share capital and 60% of the voting rights of the Group. Peab classifies its activities into three business areas: Construction, Civil Engineering and Other Activities. Construction The Construction business division is present in Sweden, Norway and Finland. Construction sales amounted to approximately 2,500 million in 2010, with a margin of 3.6%. Housing represented 42% of total sales, the rest being other building construction sales.
Civil Engineering The Civil Engineering business division obtained sales of over 1,000 million in 2010. These sales were obtained basically in Sweden. 95% of overall sales related to roads and civil engineering works and 66% were contracted by public clients. Other Activities Industry is the main business line in the Other Activities division, obtaining an operating margin of 6%. The Groups order book reached 2,838 million at December 2010, 71% of which will be executed in 2012 and 29% after 2012. By segment, the construction order book represents 68% of the total and civil engineering 32%. The Swedish order book is 88% of the total.
Peab AB is the largest construction company in Sweden and increased its sales by 9% in comparison to 2009
56
1,077 1,998 3,075
855 676 1,544 3,075

3,435
Sweden Norway Finland
4,004 3,435
Sales by segment
569 3,439 565 234 158

1,006 565
125 124
2,433
600 2,838 1,791

Construction Civil Engineering Other activities
57
YIT
The operating margin from YIT's construction sales reached 5.8% in 2010, ranking the Finnish group second among the EPoC 2010.
YITs roots date back to 1912, when Yleinen Insinritoimisto went into business in Finland. In 2010, Group revenue amounted to 3,788 million, with operating profit of 221 million. The Group employs some 26,000 people and has a presence in the Nordic countries, Russia, the Baltic countries and Central Europe. Two institutional investors hold interests of 5% or more. Structor, S.A. controls 10.5% of the Group and Varma Mutual Pension Insurance Company controls an additional 5.4%. The YIT Group's operations are divided into three business segments: Building and Industrial Services, Construction Services Finland and International Construction Services.
Building and Industrial Services The Building division executes works in areas such as heating, plumbing, air conditioning, electric systems, security, fire safety or telecommunications systems. The Industrial Services division executes works in areas such as piping, tanks, boilers, electrical, automation or ventilation systems. The Group also executes projects that aim to analyse and improve the energy efficiency of buildings. Sales of this segment amounted to 2,282 million in 2010 and were obtained in all the countries in which the Group is present. Operating profit amounted to 105 million. Construction Services Finland This segment includes works in residential construction and infrastructure construction with total sales of 1,100 million in 2010 and an operating profit of 108 million. International Construction Services Sales of this segment totalled 464 million in 2010, with an operating profit of 35 million. The Group's order book totalled 3,536 million, the highlights being the building and industrial services order book (1,264 million), the construction order book (1,173 million) and the international construction services order book (871 million).
58
Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation 641 3,536 2,500 3,788 1,444 2,344 3,788 256 221 169 168 883 668 1,566 3,117 575 2,542 3,117
Sales by geographical area 238 513 1,444
550
467 576
Finland Sweden Norway
Central Europe Russia Other countries
Sales by segment (58) 464
1,100 2,282
Building and Industrial Services Construction Finland
International Construction Services Other activities
59
Enka
Enkas history began in 1957 with the partnership between ark Tara and Sadi Glelik. In 2010, with sales of over 3,500 million and EBIT of 505 million, Enka is the main Turkish constructor. The Groups main shareholders are Tara Holding, A.S., which controls 49% of the Group shares, the Tara and Glelik families, which control 28%, Enka Spor Egitim Ve Sosyal Yardim Vakft, which controls 6%, Alternatif Aksesuar Sanayi Ve Ticaret Ltd. STI, which controls 4%, and 13% of publicly traded shares. Enkas portfolio is divided into four segments: Energy, Engineering & Construction, Real Estate, and Trade & Manufacturing. Engineering & Construction In construction, Enka executes works such as the recently launched Rreshen-Kalimask Motorway in Albania, the Shakhtar Donetsk Stadium in Donetsk (Ukraine), the Toyota Car and Assembly Plant in Saint. Petersburg (Russia) and the Blue City New Town Project in Oman. Construction sales of the Group amounted to 858 million in 2010, with a profit from operations of 129 million.
Energy Enka's participation in energy projects dates back to the thermal power plants in Tunbilek, Yataan, Yeniky and Kemerky during the 1970s. Since then, ENKA has become the sole owner of the Gebze, Adapazar and zmir Natural Gas Fired Combined Cycle Power Plants and the largest electricity producer of the private sector in Turkey, delivering approximately 30 billion kWh per annum. Energy sales of the Group amounted to 2,025 million in 2010, with a profit from operations of 167 million. Real Estate Rental sales amounted to 280 million in 2010, with a profit from operations of 189 million. Trade & Manufacturing Trade and Manufacturing sales amounted to 392 million in 2010, with a profit from operations of 20 million. The order book at December 2010 amounted to approximately 5,280 million.
Enka is the EPoC 2010 with the highest margins on construction activity and the fourth European construction company in terms of market capitalisation
60
Key Data (December 2010) Millions of euros Assets Non-current assets Current assets Total assets Liabilities and equity Equity Non-current liabilities Current liabilities Total liabilities and equity Income statement Sales Domestic sales International sales Construction sales Non-construction sales EBITDA EBIT Net profit Net profit attributable to the Group Other Key Data Net debt Order book Market capitalisation (2) 5,280 7,122 3,555 2,543 1,012 858 2,697 3,294 1,193 1,791
828
3,518 5,309
2,543
822 5,309
Turkey Russia and Kazakhstan Rest of Europe Africa and Asia
Sales by segment 280 392 2,025
584 505 422 412

858
Energy Construction
Trade and manufacturing Rental
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European construction and infrastructure group contacts

Region Austria Name Marieluise Krimmel Bruno Moritz Nikolaus Mueller Belgium Jean-Paul Loozen Pierre-Hugues Bonnefoy Rick Neckebroeck Luc Van Coppenolle Central Europe Denmark France Germany Greece Ireland Michal Petrman Lars Andersen Lars Kronow Marc de Villartay Franz Klinger Michael Mueller Alexis Damalas Michael Hadjipavlou Michael Flynn Kevin Sheehan Padraic Whelan Italy Luxembourg The Netherlands Elena Vistarini Andrea Restelli Benjamin Lam Paul Meulenberg Marcel Noordhuis Feike Oosterhof Norway Frode Lid Aase-Aamdal Lundgaard Thorvald Nyquist Portugal Joao Costa da Silva Miguel Eiras Antunes Miguel Heredia Spain Sweden Turkey UK Javier Parada Miguel Laserna Andreas Adolphsson Cem Sezgin Makhan Chahan Jack Kelly Nigel Shilton Chris Watts Telephone +43 (1) 537 00 2412 +43 (1) 537 00 4300 +43 (1) 537 00 7575 +32 (2) 639 49 40 +32 (2) 800 20 35 +32 (2) 800 20 22 +32 (3) 800 89 05 +420 246 042 520 +45 (36) 10 25 30 +45 (36) 10 27 86 +33 (1) 5561 2716 +49 (89) 29036 8362 +49 (89) 29036 8428 +30 (210) 678 1100 +30 (210) 678 1100 +353 (1) 417 2515 +353 (1) 417 2218 +353 (1) 417 2848 +39 (02) 833 25122 +39 (02) 833 22062 +(352) 451 452 429 +31 (20) 582 5060 +31 (61) 234 4631 +31 (61) 234 4617 +47 (23) 279 676 +47 (23) 279 282 +47 (23) 279 663 +351 (21) 042 7511 +351 (21) 042 3825 +351 (21) 042 3047 +34 (91) 514 5000 +34 (91) 514 5000 +46 752 462 21 03 +90 (212) 366 6036 +44 (0) 20 7007 0626 +44 (0) 20 7007 0826 +44 (0) 20 7007 7934 +44 (0) 20 7007 7939 Email mkrimmel@deloitte.at bmoritz@deloitte.at nmueller@deloitte.at jloozen@deloitte.com pbonnefoy@deloitte.com rneckebroeck@deloitte.com lvancoppenolle@deloitte.com mpetrman@deloittece.com larshandersen@deloitte.dk lkronow@deloitte.dk mdevillartay@deloitte.fr fklinger@deloitte.de mmueller@deloitte.de adamalas@deloitte.gr mhadjipavlou@deloitte.gr mflynn@deloitte.ie kesheehan@deloitte.ie pwhelan@deloitte.ie evistarini@deloitte.it arestelli@deloitte.it blam@deloitte.lu pmeulenberg@deloitte.nl mnoordhuis@deloitte.nl foosterhof@deloitte.nl flid@deloitte.no alundgaard@deloitte.no tnyquist@deloitte.no joaolsilva@deloitte.pt meantunes@deloitte.pt mheredia@deloitte.pt japarada@deloitte.es mlaserna@deloitte.es aadolphsson@deloitte.se csezgin@deloitte.com mchahal@deloitte.co.uk jackkelly@deloitte.co.uk nshilton@deloitte.co.uk chrisjwatts@deloitte.co.uk
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EPoC 2010 European powers of construction

Welcome to the eighth edition of European Powers of Construction

EPoC 2010 European powers of construction

Ranking of listed European construction companies

Top 50 European Powers of Construction ranking by sales

(a) Figures at May 2011

EPoC 2010 European powers of construction

Top 20 European Powers of Construction ranking by market capitalisation

Bouygues SA ACS, Actividades de Construccin y Servicios, SA

(a) Figures at December 2010 (b) Figures at May 2011

Internationalisation and diversification profiling of the top 20 EPoC

Non-construction revenues / total revenues %

70% 60% 50% 40%

"Domestic" Conglomerates Eiffage

Hochtief Strabag 80% 90% 100%

International revenues / total revenues %

EPoC 2010 European powers of construction

Working Abroad: Internationalisation of EPoC

EPoC 2010 European powers of construction

Africa - sales (millions of Euros) 2000

EPoC 2010 European powers of construction

Geographic diversification of EPoC 2010

23 South Eastern Asia Balfour B. BAM Bouygues Hochtief Vinci

EPoC 2010 European powers of construction

The Diversification of European Construction Companies

Non - construction revenues / total revenues %

EBIT/ total revenues %

EPoC 2010 European powers of construction

Financing the diversification

Non - construction revenues / total revenues %

EPoC 2010 European powers of construction

Top 20 listed European companies Company profiles

EPoC 2010 European powers of construction

France Central and Eastern Europe United Kingdom Germany Benelux

Rest of Europe America Africa Asia - Pacic

Sales by segment 5,226

EPoC 2010 European powers of construction

Sales by geographical area 1,351 145 2 1,643 2,301

18,620 16,966 35,586

10,607 8,732 16,247 35,586

EPoC 2010 European powers of construction

Sales by geographical area 7 1,642 977

2,340 Germany Rest of Europe America Asia Australia Africa

18,517 19,312 847 1,643 715 546 288

EPoC 2010 European powers of construction

Sales by geographical area 1,562

Spain Rest of European Union

Other OECD countries Other countries

Sales by segment (43)

2,562 Construction Concessions Environment Industrial Services Other activities

EPoC 2010 European powers of construction

Sales by geographical area 100 1,917

11,536 France Rest of Europe Africa

Sales by segment 12 707

Net debt Order book Market capitalisation

12,494 10,735 3,806

EPoC 2010 European powers of construction

Key Data (December 2010) Millions of euros Assets

Sales by geographical area

1,733 6,931 8,664

Sweden Rest of Europe America

12,815 2,435 10,380 11,871 944 735 572 422 422