epoc 2010. european powers of construction
DESCRIPTION
Deloitte acaba de publicar el estudio EPoC 2010 que examina la situación de las principales empresas europeas cotizadas en diciembre 2010 y su posición en el mercado, su internacionalización, margen y deuda.TRANSCRIPT
EPoC 2010European powers of construction
June 2011
EPoC is an annual publication edited by Deloitte and distributed free
DirectorJavier Parada, partner in charge of the Infrastructure Industry, Spain
Coordinated byMargarita VelascoAlberto Benito Benito
Edited byCIBS
ContactInfrastructure Department, Deloitte MadridPlaza Pablo Ruiz Picasso, S/NTorre Picasso 28020 Madrid, Spain
Phone + 34 91 514 50 00Fax + 34 91 514 51 80
June 2011
Contents
5 Introduction 6 Ranking of listed European construction companies 7 Top 50 European Powers of Construction – ranking by sales 8 Top 20 European Powers of Construction – ranking by market capitalisation 9 Internationalisation and diversification profiling of the TOP 20 EPoC 11 Working abroad: Internationalisation of EPoC 16 The diversification of European construction companies 18 Financing the diversification 21 Top 20 listed European companies – Company profiles 62 European Construction and Infrastructure Group Contacts
Welcome to the eighth edition of European Powers of Construction
EPoC 2010 European powers of construction 5
Introduction
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.
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.
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 company’s 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.
6
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.
Country Total SalesNumber of Companies
Average Sales
France 78,154 3 26,051
Spain 56,508 7 8,073
United Kingdom 38,284 13 2,945
Germany 29,298 3 9,766
Sweden 22,959 4 5,740
Austria 15,603 2 7,802
Netherlands 11,650 3 3,883
Finland 5,680 2 2,840
Italy 5,060 3 1,687
Portugal 4,279 3 1,426
Turkey 3,555 1 3,555
Greece 2,544 2 1,272
Norway 1,972 1 1,972
Switzerland 1,731 1 1,731
Denmark 1,114 1 1,114
Poland 1,048 1 1,048
Total 279,439 50 5,589
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
EPoC 2010 European powers of construction 7
Ranking Company Country FY END Sales (€ m) EBITDA (€ m)
EBIT (€ m) Market
Capitalisation (€ m) (a)
1 Vinci SA France Dec 10 33,376 5,052 3,429 23,6942 Bouygues SA France Dec 10 31,225 3,701 1,760 12,1223 Hochtief AG Germany Dec 10 20,159 1,643 715 4,4514 ACS, Actividades de Construcción y Servicios, SA Spain Dec 10 15,380 1,500 1,077 10,7735 Eiffage SA France Dec 10 13,553 1,852 1,041 3,8066 Skanska AB Sweden Dec 10 12,815 735 572 6,0407 Strabag SE Austria Dec 10 12,777 735 299 2,5168 Balfour Beatty Plc United Kingdom Dec 10 12,288 422 240 2,6379 Ferrovial SA Spain Dec 10 12,169 2,514 1,514 6,951
10 Fomento de Construcciones y Contratas SA (FCC) Spain Dec 10 12,114 1,435 774 2,93111 Bilfinger Berger SE Germany Dec 10 8,007 511 343 2,85212 Koninklijke Bam Groep NV Netherlands Dec 10 7,611 206 (30) 1,26113 Acciona SA Spain Dec 10 6,263 1,211 527 4,66714 Carillion PLC United Kingdom Dec 10 5,991 265 227 1,81915 NCC AB Sweden Dec 10 5,182 236 236 1,96516 Obrascon Huarte Lain SA (OHL) Spain Dec 10 4,910 1,005 700 2,76317 Sacyr Vallehermoso SA Spain Dec 10 4,820 572 394 3,53018 Peab AB Sweden Dec 10 4,004 234 158 1,79119 Yit Oyj Finland Dec 10 3,788 256 221 2,50020 Enka Insaat Ve Sanayi AS Turkey Dec 10 3,555 584 505 7,12221 Taylor Wimpey Plc United Kingdom Dec 10 3,034 220 215 1,39622 Porr Group Austria Dec 10 2,826 103 49 28023 Heijmans NV Netherlands Dec 10 2,680 83 48 40224 Barratt Developments Plc United Kingdom Jun 10 2,450 71 61 33925 Morgan Sindall Plc United Kingdom Dec 10 2,386 89 64 52326 Kier Group Plc United Kingdom Jun 10 2,315 107 102 1,18627 Interserve Plc United Kingdom Dec 10 2,182 123 87 39328 Impregilo Spa Italy Dec 10 2,062 282 224 89629 Astaldi Spa Italy Dec 10 2,045 230 174 52730 Mota Engil Sgps SA Portugal Dec 10 2,005 237 132 37731 Veidekke Asa Norway Dec 10 1,972 98 53 79732 Lemminkainen Oyj Finland Dec 10 1,892 65 29 49133 Persimmon Plc United Kingdom Dec 10 1,829 150 145 1,51934 Ellaktor SA Greece Dec 10 1,753 279 167 61835 Implenia AG Switzerland Dec 10 1,731 82 53 41536 Galliford Try Plc United Kingdom Jun 10 1,390 37 33 31937 Teixeira Duarte Engenharia e Construçoes SA Portugal Dec 10 1,380 150 84 27238 Ballast Nedam NV Netherlands Dec 10 1,359 45 18 16339 Keller Group Plc United Kingdom Dec 10 1,246 99 50 45140 Costain Group Plc United Kingdom Dec 10 1,191 37 34 18541 Bauer Aktiengesellschaft Germany Dec 10 1,132 166 88 61342 Mt Højgaard Denmark Dec 10 1,114 30 13 17843 Interior Services Group Plc United Kingdom Jun 10 1,106 16 13 6444 Polimex Mostostal SA Poland Dec 10 1,048 63 40 40745 JM AB Sweden Dec 10 958 95 95 1,30346 Trevi Group Italy Dec 10 953 137 84 55447 Grupo Soares Da Costa SGPS Sa Portugal Dec 10 894 88 50 8848 Bellway Plc United Kingdom Jul 10 876 60 58 92349 Grupo Empresarial San Jose SA Spain Dec 10 852 68 25 35050 J&P-Avax SA Greece Dec 10 791 80 80 96
Top 50 European Powers of Construction – ranking by sales
(a) Figures at May 2011
8
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
Ranking COMPANY CountrySales
(€ m) (a)EBITDA (€
m) (a)EBIT (€ m) (a)
Market Capitalisation
(€ m) (b)
1 Vinci SA France 33,376 5,052 3,429 23,694
2 Bouygues SA France 31,225 3,701 1,760 12,122
3 ACS, Actividades de Construcción y Servicios, SA Spain 15,380 1,500 1,077 10,773
4 Enka Insaat Ve Sanayi AS Turkey 3,555 584 505 7,122
5 Ferrovial SA Spain 12,169 2,514 1,514 6,9516 Skanska AB Sweden 12,815 735 572 6,0407 Acciona SA Spain 6,263 1,211 527 4,6678 Hochtief AG Germany 20,159 1,643 715 4,4519 Eiffage SA France 13,553 1,852 1,041 3,806
10 Sacyr Vallehermoso SA Spain 4,820 572 394 3,53011 Fomento de Construcciones y Contratas SA (FCC) Spain 12,114 1,435 774 2,93112 Bilfinger Berger SE Germany 8,007 511 343 2,85213 Obrascon Huarte Lain SA (OHL) Spain 4,910 1,005 700 2,76314 Balfour Beatty PLC United Kingdom 12,288 422 240 2,63715 Strabag SE Austria 12,777 735 299 2,51616 Yit Oyj Finland 3,788 256 221 2,50017 NCC AB Sweden 5,182 236 236 1,96518 Carillion PLC United Kingdom 5,991 265 227 1,81919 Peab AB Sweden 4,004 234 158 1,79120 Persimmon PLC United Kingdom 1,829 150 145 1,519
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.
(a) Figures at December 2010(b) Figures at May 2011
EPoC 2010 European powers of construction 9
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 groupsThis 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.
Non
-con
stru
ctio
n re
venu
es /
tot
al r
even
ues
%
International revenues / total revenues %
10%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
20%
30%
40%
50%
60%
70%
80%
90%
100%
"Domestic" Conglomerates International
Conglomerates
International Construction Groups
"Domestic" Construction Groups
ACS
Acciona
Sacyr
FCC
Balfour Beatty
Bilfinger
Ferrovial
OHL
BamYit
Skanska
NCCStrabag
Hochtief
Bouygues
Vinci
Carillion
Eiffage
Peab
Enka
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 groupsThe 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.
10
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” conglomeratesA 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, energy-related 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.
Carillion’s 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 ConglomeratesFinally, 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. FCC’s 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.
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
EPoC 2010 European powers of construction 11
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 CountryInternational Sales/Total
Sales
Total Sales
Domestic Sales
Rest of Europe
AmericaAsia /
OceaniaAfrica
Not Specified
Hochtief AG Germany 91.86% 20,159 1,642 977 6,891 10,642 7 -
Strabag SE Austria 85.07% 12,777 1,907 10,067 246 421 136 -
Skanska AB Sweden 78.00% 12,815 2,435 5,238 5,142 - - -
OHL Spain 69.74% 4,910 1,496 476 2,444 172 271 51
Ferrovial SA Spain 69.06% 12,169 3,765 6,513 1,610 - - 281
Yit Oyj Finland 61.88% 3,788 1,444 2,327 - - - 17
Bilfinger Berger SE Germany 58.30% 8,007 3,358 3,030 591 509 635 (117)
Bam Groep NV Netherlands 55.38% 7,611 3,397 3,878 - - - 336
Balfour Beatty PLC United Kingdom 52.64% 12,288 5,820 - 3,582 - - 2,886
NCC AB Sweden 46.32% 5,182 2,782 2,400 - - - -
FCC Spain 46.00% 12,114 6,541 4,792 279 - - 502
Vinci SA France 37.30% 33,376 20,927 8,543 1,297 911 1,698 -
ACS Spain 31.81% 15,380 10,488 978 2,967 - - 947
Bouygues SA France 31.13% 31,225 21,506 4,277 2,446 1,643 1,351 2
Sacyr Spain 31,00% 4,820 3,326 847 331 30 164 122
Acciona SA Spain 30.80% 6,263 4,334 987 - - - 942
Enka Turkey 28.50% 3,555 2,543 964 - 48 - -
Carillion PLC United Kingdom 25.10% 5,991 4,476 - 826 586 - 103
Eiffage SA France 14.88% 13,553 11,536 1,917 - - 100 -
Peab AB Sweden 14.21% 4,004 3,435 569 - - - -
49.05% 229,987 117,158 58,781 28,652 14,962 4,362 6,072
12
The AmericasHochtief 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.
Balfour Beatty’s 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 Group’s 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 world’s 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.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Hoc
htie
f AG
Skan
ska
AB
Balfo
ur B
eatt
y PL
C
AC
S
Bouy
gues
SA
OH
L
Ferr
ovia
l SA
Vin
ci S
A
Car
illio
n PL
C
Bilfi
nger
Ber
ger
SE
The Americas - sales (millions of Euros)
EPoC 2010 European powers of construction 13
0
2000
4000
6000
8000
10000
12000
Hoc
htie
f AG
Bouy
gues
SA
Vin
ci S
A
Car
illio
n PL
C
Bilfi
nger
Ber
ger
SE
Asia/Oceania - sales (millions of Euros)
0
500
1000
1500
2000
Bouy
gues
SA
Vin
ci S
A
Bilfi
nger
Ber
ger
SE
Africa - sales (millions of Euros)
Asia/OceaniaHochtief 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 Asia—such as India—and in the Gulf States. Hochtief’s main activities in the Asia-Pacific area are infrastructure, construction and contract mining.
Behind Hochtief, but with significant sales in the Asia-Pacific 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.
AfricaSogea – Satom is Vinci’s 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 country’s installed power generation capacity.
14
1
Canada
Acciona ACS Balfour B.Bouygues BilfingerCarillionFCC FerrovialHochtief OHLVinci
2
The USA
AccionaACSABalfour B.BilfinguerBouyguesFCCFerrovialHochtiefOHLSkanskaVinci
3
Mexico
AccionaACSBouyguesFCCFerrovialOHLSacyrVinci
4
Caribbean Area
ACSBalfour B.BouyguesCarillionEnkaFCCFerrovialSacyr Vinci
5
Colombia, Venezuela, Ecuador, Peru
AccionaACSBalfour B.BouyguesFCCFerrovialHochtiefOHLSkanskaVinci
6
Chile, Argentina, Uruguay
AccionaACSBalfour B.FCCFerrovialHochtiefOHLSacyrSkanskaVinci
7
Paraguay, Bolivia
ACSFerrovial
9
Eurozone
AccionaACSBalfour B.BAMBilfingerBouyguesCarillionEiffageEnkaFCCFerrovialHochtiefNCCOHLPeabSacyrSkanskaStrabagVinciYIT
10
The UK
ACSBalfour B.BilfingerBouyguesCarillionEiffageFCCFerrovialHochtiefSkanskaVinci
11
Iceland, Norway, Sweden, Denmark
Balfour B.BilfingerNCCPeabSkanskaVinciYIT
12
Switzerland
Balfour BBilfingerFerrovialStrabagVinci
13
Balkan Area
Balfour B.BilfingerBouyguesEnkaFCCFerrovialHochtiefOHLVinci
14
Eastern Europe
AccionaACSBalfour B.BAMBilfingerBouyguesEiffageEnkaFCCFerrovialHochtiefOHLSkanskaStrabagVinciYIT
15
Azerbaijan, Kazakhstan, Tajikistan, Turkmenistan,
Uzbekistan, Ukraine
BouyguesEnkaFerrovialOHLStrabagVinci
16
Turkey
Balfour B.BilfingerEnkaOHLVinci
17
Libya, Egypt
ACSBAMBouyguesCarillionEnkaFCCFerrovialStrabagVinci
18
Russia
EnkaFCCFerrovialHochtiefNCCVinciYIT
20
Afghanistan, Pakistan
EnkaVinci
21
South Korea, Japan
AccionaBalfour B.BouyguesHochtiefVinci
8
Brazil
AccionaACSBalfour B.FCCFerrovialOHLSacyrSkanskaVinci
Geographic diversification of EPoC 2010
1
2
3
5
6
7
8
19
Iran, Irak
ACSBouygues
4
EPoC 2010 European powers of construction 15
22
China, Mongolia
ACSBalfour B.BouyguesFCCFerrovialHochtiefVinci
23
South Eastern Asia
Balfour B.BAMBouyguesHochtiefVinci
24
India
AccionaACSBalfour B.BouyguesFerrovialHochtiefVinci
25
Arabian Peninsula
ACSBalfour B.BAMBilfingerBouyguesCarillionEnkaHochtiefOHLVinci
26
Israel, Lebanon, Jordan
ACSBouyguesFerrovialSacyrVinci
27
Australia
AccionaACSBalfour B.BAMBilfingerBouyguesHochtiefOHLSacyrVinci
28
New Zealand
Balfour B.BouyguesHochtiefVinci
29
Madagascar
BouyguesVinci
30
Eastern Africa
ACSBalfour B.BAMBouyguesEnkaFerrovialSacyrVinci
31
South Africa, Mozambique
ACSBalfour B.BilfingerBouyguesHochtiefVinci
32
Angola, Namibia
ACSBouyguesSacyrVinci
33
Western Africa
ACSBalfour B.BilfinguerBouyguesEiffageFerrovialVinci
34
Maghreb Area
AccionaACSBalfour B.BouyguesFCCFerrovialOHLVinci
9
10
11
1213
14
15
1619
20
2122
23
2425
26
27
28
29
30
31
32
33
3417
18
16
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.
Hochtief
Non
- c
onst
ruct
ion
reve
nues
/ t
otal
rev
enue
s %
EBIT/ total revenues %
10%
2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ACS
Acciona
FCC
Eiffage
Sacyr
Enka
Balfour Beatty
Bilfinger
Ferrovial
OHL
BAM Strabag
Bouygues
Vinci
Carillion
SkanskaPeab
NCC Yit
EPoC 2010 European powers of construction 17
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.
EBIT/ Sales
CompanyConstruction
activitiesOther activities Total
ENKA 15.3% 13.9% 14.2%
YIT OYJ 5.8% N/A 5.8%
ACS 5.3% 8.0% 7.0%
OHL 4.8% 30.1% 14.3%
NCC AB 4.6% N/A 4.6%
VINCI SA 4.5% 41.4% 10.3%
FERROVIAL SA 4.2% 17.3% 12.4%
SKANSKA AB 3.9% 11.9% 4.5%
BOUYGUES SA 3.8% 10.7% 5.6%
AVERAGE EPoC 2010 3.7% 13.3% 6.5%
HOCHTIEF AG 3.8% 0.0% 3.5%
ACCIONA SA 3.7% 13.1% 8.4%
FCC 3.6% 9.8% 6.4%
PEAB AB 3.5% 7.2% 3.9%
SACYR 3.5% 14.8% 8.2%
CARILLION PLC 3.3% 4.4% 3.8%
EIFFAGE SA 3.0% 13.5% 7.7%
BALFOUR BEATTY PLC 2.8% 0.5% 2.0%
BILFINGER BERGER SE 2.7% 6.2% 4.3%
STRABAG SE 2.3% N/A 2.3%
BAM GROEP NV 1.8% 0.0% -0.4%
The construction activity of the major listed European construction companies reported margins of between 3% and 5% in most cases in 2010.
18
Financing the diversification
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.
Hochtief
Non
- c
onst
ruct
ion
reve
nues
/ t
otal
rev
enue
s %
Net Debt
10%
(500)(1,000) 0 500 1,000 3,000 5,000 10,000 15,000 20,000 25,000
20%
30%
40%
50%
60%
70%
80%
90%
100%
ACS
Acciona
FCC
Eiffage
Sacyr
Enka
Balfour Beatty
Bilfinger
Ferrovial
OHL
Bam
Strabag
Bouygues
Vinci
Carillion
Skanska Peab
NCC Yit
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.
EPoC 2010 European powers of construction 19
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)
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
Bilfinger Berger SE
Enka
Carillion Plc
Skanska AB
Balfour Beatty Plc
Strabag SE
(1,000) 4,000 9,000 14,000 19,000 24,000
20
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 group’s consolidated balance sheet. The motorway division contributed EBITDA of €630 million to the group in 2010 and net debt of €5,026 million.
Similarly, Vinci’s net debt also arises from the group’s 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.
Eiffage’s 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.
The companies that have remained focused on the construction activity have lower debt than the companies that have further diversified their portfolio
Sacyr’s 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.
ACS’s 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.
FCC’s 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).
Acciona’s 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.
OHL’s 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 PFI’s over which the respective company does not have control (that in some cases may be significant).
EPoC 2010 European powers of construction 21
Top 20 listed European companies – Company profiles
22
With a presence on five continents, Vinci is still the largest listed European construction company and increased its sales by 8% in 2010
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 Financière 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.
ConcessionsThe Group’s concession business, with a network stretching 4,385 km, represents more than half of France’s motorway network under concession.
Vinci Autoroutes is the Group’s 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.
ContractingVinci 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 France’s 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.
Vinci SA
EPoC 2010 European powers of construction 23
•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.
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 36,410
Current assets 20,003
Total assets 56,413
Liabilities and equity
Equity 13,025
Non-current liabilities 21,431
Current liabilities 21,957
Total liabilities and equity 56,413
Income statement
Sales 33,376
Domestic sales 20,927
International sales 12,449
Construction sales 28,150
Non-construction sales 5,226
EBITDA 5,052
EBIT 3,429
Net profit 1,900
Net profit attributable to the Group
1,776
Other Key Data
Net debt 13,060
Order book 25,900
Market capitalisation 23,694
Sales by geographical area
20,927
2,284
1,864
1,844
1,470
1,081
1,2971,698
911
France
Central and Eastern Europe
United Kingdom
Germany
Rest of Europe
America
Africa
Asia - Pacific
Benelux
Sales by segment
28,150
5,226
Contracting Concessions
24
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.
ConstructionBouygues 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 world’s 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 division’s sales, North America originated 19%, Europe excluding France 16% and Africa/Indian Ocean/Asia 8%.
Telecoms/MediaThe Group manages 43.1% of TF1, France’s 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
Bouygues SA
EPoC 2010 European powers of construction 25
Sales by geographical area
21,506
2,301
4,277
1,6431,351 145 2
France
Rest of Europe
North America
Asia - Pacific
Africa
South America
Other countries
Sales by segment
23,003
8,222
Construction Telecoms/Media
Key Data (December 2010) Millions of euros
Assets
Non-current assets 18,620
Current assets 16,966
Total assets 35,586
Liabilities and equity
Equity 10,607
Non-current liabilities 8,732
Current liabilities 16,247
Total liabilities and equity 35,586
Income statement
Sales 31,225
Domestic sales 21,506
International sales 9,719
Construction sales 23,003
Non-construction sales 8,222
EBITDA 3,701
EBIT 1,760
Net profit 1,263
Net profit attributable to the Group
1,071
Other Key Data
Net debt 2,473
Order book 22,621
Market capitalisation 12,122
OtherIn 2006, the Bouygues Group acquired the French government’s 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 Group’s financial statements.
The Group’s 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).
26
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 PacificSales 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 EuropeThe 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%).
OtherThe 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.
Hochtief increased its sales by 11% in 2010, with profit from operating activities up by 36% on 2009
Hochtief AG
EPoC 2010 European powers of construction 27
Sales by geographical area
6,891
8,302
7
2,340
977
1,642
Germany
Rest of Europe
America
Asia
Australia
Africa
Sales by segment
6,396
2,377
1,047
10,339
Hochtief Americas
Hochtief Asia - Pacific
Hochtief Europe
Other activities
Key Data (December 2010) Millions of euros
Assets
Non-current assets 5,868
Current assets 9,118
Total assets 14,986
Liabilities and equity
Equity 4,264
Non-current liabilities 3,373
Current liabilities 7,349
Total liabilities and equity 14,986
Income statement
Sales 20,159
Domestic sales 1,642
International sales 18,517
Construction sales 19,312
Non-construction sales 847
EBITDA 1,643
EBIT 715
Net profit 546
Net profit attributable to the Group
288
Other Key Data
Net debt 772
Order book 47,490
Market capitalisation 4,451
28
ACS commenced operations in 1983, and has become a world leader in construction and services activities with more than 140,000 employees worldwide.
The Group’s main shareholders are Spanish institutional investors (Corporación Financiera Alba 18%, Corporación Financiera Alcor 14% and Inversiones Vesan 13%).
The Group portfolio is divided as follows:
ConstructionThe 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.
ConcessionsThe concession business of the Group is managed by Iridium and achieved sales of €110 million in 2010.
EnvironmentThe 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 ServicesIndustrial 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 InvestmentsThe 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
ACS Group
EPoC 2010 European powers of construction 29
Sales by geographical area
10,488
2,139
1,562
1,191
Spain
Rest of European Union
Other OECD countries
Other countries
Sales by segment
5,593
7,158
(43)
2,562
110
Construction
Concessions
Environment
Industrial Services
Other activities
Key Data (December 2010) Millions of euros
Assets
Non-current assets 15,995
Current assets 18,190
Total assets 34,185
Liabilities and equity
Equity 4,443
Non-current liabilities 10,771
Current liabilities 18,971
Total liabilities and equity 34,185
Income statement
Sales 15,380
Domestic sales 10,488
International sales 4,892
Construction sales 5,593
Non-construction sales 9,787
EBITDA 1,500
EBIT 1,077
Net profit 1,355
Net profit attributable to the Group
1,312
Other Key Data
Net debt 8,003
Order book 28,777
Market capitalisation 10,773
30
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).
Eiffage’s 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 Group’s concession business achieved sales of €2,310 million in 2010, with EBITDA over sales of 68% and net debt of almost €14,000 million.
ConstructionConstruction sales amounted to €3,656 million in 2010 with a mix of public-private sales of 47%/53%.
Public WorksPublic Works sales were €3,865 million in 2010, basically in the development of roads which contributes over 61% of total division sales.
EnergyThe 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).
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
Eiffage
EPoC 2010 European powers of construction 31
Sales by geographical area
1,917100
11,536
France
Rest of Europe
Africa
Key Data (December 2010) Millions of euros
Assets
Non-current assets 19,716
Current assets 6,277
Total assets 25,993
Liabilities and equity
Equity 2,501
Non-current liabilities 15,622
Current liabilities 7,870
Total liabilities and equity 25,993
Income statement
Sales 13,553
Domestic sales 11,536
International sales 2,017
Construction sales 7,521
Non-construction sales 6,032
EBITDA 1,852
EBIT 1,041
Net profit 326
Net profit attributable to the Group
232
Other Key Data
Net debt 12,494
Order book 10,735
Market capitalisation 3,806
Sales by segment
2,310
3,003
707
3,865
3,656
12
Construction
Concessions
Public works
Energy
Holding
Metal
32
The origins of the Company date back to 1887 when Aktiebolaget Skånska Cementgjuteriet was established and started manufacturing concrete products.
More than a century later, Skanska obtains approximately 80% of its sales outside Sweden.
Skanska’s 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 Group’s 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
Skanska
EPoC 2010 European powers of construction 33
Sales by geographical area
5,142
2,435
5,283
Sweden
Rest of Europe
America
Key Data (December 2010) Millions of euros
Assets
Non-current assets 1,733
Current assets 6,931
Total assets 8,664
Liabilities and equity
Equity 2,318
Non-current liabilities 445
Current liabilities 5,901
Total liabilities and equity 8,664
Income statement
Sales 12,815
Domestic sales 2,435
International sales 10,380
Construction sales 11,871
Non-construction sales 944
EBITDA 735
EBIT 572
Net profit 422
Net profit attributable to the Group
422
Other Key Data
Net debt (308)
Order book 15,421
Market capitalisation 6,040
Sales by segment
11,871
944
Construction Other activities
34
Strabag SE’s 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 SE’s 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 EngineeringThe 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 InfrastructuresThe 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 ConcessionsThis 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 Group’s 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).
The net cash position of Strabag Se reached €669 million in 2010, the highest net cash position among the EPoC 2010
Strabag SE
EPoC 2010 European powers of construction 35
Key Data (December 2010) Millions of euros
Assets
Non-current assets 4,345
Current assets 6,037
Total assets 10,382
Liabilities and equity
Equity 3,232
Non-current liabilities 2,364
Current liabilities 4,786
Total liabilities and equity 10,382
Income statement
Sales 12,777
Domestic sales 1,907
International sales 10,870
Construction sales 12,777
Non-construction sales -
EBITDA 735
EBIT 299
Net profit 188
Net profit attributable to the Group
175
Other Key Data
Net debt (669)
Order book 14,739
Market capitalisation 2,516
Sales by geographical area
5,051
580
3,020
1,907
1,352
867
Germany
Austria
Poland
Czech Republic
Hungary
Other countries
Sales by segment
4,279
2,518
170
5,810
Building Construction & Civil Engineering
Transportation Infrastructures
Special Division & Concessions
Other activities
36
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 Group’s 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 Beatty’s activity is segmented into four lines: Construction Services, Professional Services, Support Services and Infrastructure Investments.
Construction servicesThe 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 servicesThe acquisition of Parsons Brinckerhoff in 2009 transformed the Group’s 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 servicesThe 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 investmentsThis 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 Group’s 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
Balfour Beatty
EPoC 2010 European powers of construction 37
Key Data (December 2010) Millions of euros
Assets
Non-current assets 3,384
Current assets 2,871
Total assets 6,255
Liabilities and equity
Equity 1,349
Non-current liabilities 1,465
Current liabilities 3,441
Total liabilities and equity 6,255
Income statement
Sales 12,288
Domestic sales 5,820
International sales 6,468
Construction sales 7,860
Non-construction sales 4,428
EBITDA 422
EBIT 240
Net profit 167
Net profit attributable to the Group
167
Other Key Data
Net debt (604)
Order book 17,719
Market capitalisation 2,637
Sales by geographical area
5,820
3,582
2,886
United Kingdom America Not specified
Sales by segment
7,860
1,672
876
1,880
Construction services Support services
Professional services Other activities
38
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.
ConstructionFerrovial 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.
AirportsThe 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.
HighwaysToll 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 Group’s Toll Road division was €5,026 at December 2010.
The Group’s 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).
Ferrovial's EBITDA reached €2,514 million at December 2010, placing the Spanish group as the third highest cash generator of the EPoC 2010
Ferrovial
EPoC 2010 European powers of construction 39
Key Data (December 2010) Millions of euros
Assets
Non-current assets 35,465
Current assets 7,822
Total assets 43,287
Liabilities and equity
Equity 6,824
Non-current liabilities 28,596
Current liabilities 7,867
Total liabilities and equity 43,287
Income statement
Sales 12,169
Domestic sales 3,765
International sales 8,404
Construction sales 4,525
Non-construction sales 7,644
EBITDA 2,514
EBIT 1,514
Net profit 1,815
Net profit attributable to the Group
2,163
Other Key Data
Net debt 19,789
Order book 22,189
Market capitalisation 6,951
Sales by geographical area
4,203
2,007
3,765
1,024
1,170
United Kingdom
Spain
The United States
Poland
Other countries
Sales by segment
3,896
2,799
869 80
4,525
Services Airports OthersConstruction Highways
40
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.
FCC’s 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 ServicesEnvironmental 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.
VersiaThe 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).
ConstructionConstruction 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.
CementThe Cement division of FCC leads the Spanish market, where it obtained 67% of its 2010 sales (€887 million).
The Group’s 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
FCC
EPoC 2010 European powers of construction 41
Key Data (December 2010) Millions of euros
Assets
Non-current assets 13,394
Current assets 8,585
Total assets 21,979
Liabilities and equity
Equity 3,206
Non-current liabilities 10,963
Current liabilities 7,810
Total liabilities and equity 21,979
Income statement
Sales 12,114
Domestic sales 6,541
International sales 5,573
Construction sales 6,694
Non-construction sales 5,420
EBITDA 1,435
EBIT 774
Net profit 314
Net profit attributable to the Group
301
Other Key Data
Net debt 7,749
Order book 35,309
Market capitalisation 2,931
Sales by geographical area
1,115
1,616
6,541
279 502
724
724
613
Spain
Austria
Eastern EuropeGermany
The United StatesOther countries
United Kingdom
Western Europe
Sales by segment
3,672
887 15
8466,694
Environmental Services
Versia
Construction
Cement
Other activities
42
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 ServicesBilfinger 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 ServicesBilfinger 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 ServicesThe 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 Group’s 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
Bilfinger Berger SE
EPoC 2010 European powers of construction 43
Key Data (December 2010) Millions of euros
Assets
Non-current assets 4,460
Current assets 3,477
Total assets 7,937
Liabilities and equity
Equity 1,812
Non-current liabilities 2,511
Current liabilities 3,614
Total liabilities and equity 7,937
Income statement
Sales 8,007
Domestic sales 3,358
International sales 4,649
Construction sales 4,058
Non-construction sales 3,949
EBITDA 511
EBIT 343
Net profit 286
Net profit attributable to the Group
284
Other Key Data
Net debt 48
Order book 8,585
Market capitalisation 2,852
Sales by geographical area
3,030
3,358
26483 (16)
591
635
Germany
Rest of Europe
AmericaAfrica
Other countries
Asia
Australia
Sales by segment
2,932
1,725
(89)
1,106
2,333
Industrial Services
Power Services
Building and Facility Services
Construction
Other activities
44
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.
ConstructionBam 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 InvestmentsSales of €593 million were obtained mostly in the Netherlands (88%).
Civil EngineeringCivil 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 businessThe 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 Group’s 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
Bam Groep
EPoC 2010 European powers of construction 45
Key Data (December 2010) Millions of euros
Assets
Non-current assets 2,560
Current assets 4,574
Total assets 7,134
Liabilities and equity
Equity 1,102
Non-current liabilities 2,316
Current liabilities 3,716
Total liabilities and equity 7,134
Income statement
Sales 7,611
Domestic sales 3,397
International sales 4,214
Construction sales 7,225
Non-construction sales 386
EBITDA 206
EBIT (30)
Net profit 18
Net profit attributable to the Group
15
Other Key Data
Net debt 1,357
Order book 12,100
Market capitalisation 1,261
Sales by segment
3,211
3,659
148
593
Construction Civil Engineering
Property Investments Other activities
Sales by geographical area
3,397
677336
2,060
854
287
United Kingdom
Rest of Europe
America
Asia / Oceania
Africa
Other countries
46
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.
Acciona’s 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:
InfrastructureAcciona 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 EstateCreated in 1989, the Real Estate business division had sales of €204 million in 2010 with an EBITDA/ Sales ratio of over 10%.
EnergyAcciona 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 ServicesThe 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 división has a presence in the USA, Mexico, Chile, Brazil, Spain, Italy and Australia.
Logistics & Transport ServicesAcciona 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
Acciona
EPoC 2010 European powers of construction 47
Other businessAcciona 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 Barceló; 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).
Key Data (December 2010) Millions of euros
Assets
Non-current assets 13,615
Current assets 6,887
Total assets 20,502
Liabilities and equity
Equity 6,063
Non-current liabilities 7,039
Current liabilities 7,400
Total liabilities and equity 20,502
Income statement
Sales 6,263
Domestic sales 4,334
International sales 1,929
Construction sales 3,121
Non-construction sales 3,142
EBITDA 1,211
EBIT 527
Net profit 184
Net profit attributable to the Group
167
Other Key Data
Net debt 6,587
Order book 12,070
Market capitalisation 4,667
Sales by geographical area
4,334
760
182
987
Spain Rest of OECD countries
Rest of European Union Other countries
Sales by segment
3,121
777(68)
204
1,497
732
Infrastructure
Real Estate
Energy
Water and Environmental & Urban Services
Logistic & Transport Services
Other activities
48
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.
Carillion’s portfolio includes Construction works (where the Group differentiates the Middle East from the rest of the world) and Support Services.
Support ServicesIn 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 ServicesIn 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).
Carillion's Middle East Construction Services obtained over €500 million in 2010, with an operating margin of 10%
Carillion
EPoC 2010 European powers of construction 49
Key Data (December 2010) Millions of euros
Assets
Non-current assets 1,927
Current assets 1,737
Total assets 3,664
Liabilities and equity
Equity 1,006
Non-current liabilities 591
Current liabilities 2,067
Total liabilities and equity 3,664
Income statement
Sales 5,991
Domestic sales 4,476
International sales 1,515
Construction sales 3,169
Non-construction sales 2,822
EBITDA 265
EBIT 227
Net profit 178
Net profit attributable to the Group
171
Other Key Data
Net debt (140)
Order book 21,216
Market capitalisation 1,819
Sales by geographical area
4,476
826
103
586
United Kingdom Canada and Caribbean Area
Middle East Other countries
Sales by segment
2,582
2,594
240
575
Support Services Other Construction Services
Middle East Construction Services
Private Finance
50
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.
ConstructionThe Group’s 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.
RoadsNCC 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%.
HousingNCC 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 DevelopmentNCC 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%)
NCC
EPoC 2010 European powers of construction 51
Key Data (December 2010) Millions of euros
Assets
Non-current assets 640
Current assets 2,828
Total assets 3,468
Liabilities and equity
Equity 907
Non-current liabilities 758
Current liabilities 1,803
Total liabilities and equity 3,468
Income statement
Sales 5,182
Domestic sales 2,782
International sales 2,400
Construction sales 5,182
Non-construction sales -
EBITDA 236
EBIT 236
Net profit 160
Net profit attributable to the Group
160
Other Key Data
Net debt 90
Order book 4,239
Market capitalisation 1,965
Sales by geographical area
2,7821,074
821
505
Sweden Finland and rest of Baltic countries
Denmark Norway
Sales by segment
3,202
211 (68)
1,120
717
Construction
Roads
Housing
Property Development
Other activities
52
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 InfrastructuresThe 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 ConstructionThe 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 ConstructionThe National Construction Division obtained sales of €1,241 million in 2010, with EBITDA of €90 million.
Other ActivitiesThe 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 Group’s order book, Brazil 30% and Spain 10%.
OHL leads the EPoC 2010 ranking of profitability by sales with an operating margin of 14.3%
OHL
EPoC 2010 European powers of construction 53
Key Data (December 2010) Millions of euros
Assets
Non-current assets 8,582
Current assets 4,020
Total assets 12,602
Liabilities and equity
Equity 2,025
Non-current liabilities 6,717
Current liabilities 3,860
Total liabilities and equity 12,602
Income statement
Sales 4,910
Domestic sales 1,496
International sales 3,414
Construction sales 3,071
Non-construction sales 1,839
EBITDA 1,005
EBIT 700
Net profit 252
Net profit attributable to the Group
196
Other Key Data
Net debt 4,420
Order book 84,307
Market capitalisation 2,763
Sales by segment
1,8301,241
330
1,509
International Construction National Construction
Concession infrastructures Other activities
Sales by geographical area
939 954
1,496
172107 35 28 51
476
381
271
Spain
Mexico
BrazilEastern Europe
PeruArgentina
The United States
Algeria
Other countries
Qatar
Chile
54
SacyrSacyr 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 Abelló, who controls 10% through three institutional investors.
Its portfolio is divided into Construction, Services and rest of business.
ConstructionThe 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.
ServicesValoriza is the flagship brand of the Sacyr Group’s 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 businessThe 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 Group’s total order book.
Sacyr is the main shareholder of Repsol, since it controls 20% of the Spanish petrochemical group
Sacyr
EPoC 2010 European powers of construction 55
Key Data (December 2010) Millions of euros
Assets
Non-current assets 14,677
Current assets 6,436
Total assets 21,113
Liabilities and equity
Equity 3,791
Non-current liabilities 5,623
Current liabilities 11,699
Total liabilities and equity 21,113
Income statement
Sales 4,820
Domestic sales 3,326
International sales 1,494
Construction sales 2,819
Non-construction sales 2,001
EBITDA 572
EBIT 394
Net profit 211
Net profit attributable to the Group
204
Other Key Data
Net debt 10,995
Order book 51,531
Market capitalisation 3,530
Sales by segment
2,819
250
746
1,005
Construction Rental Properties
Services Other activities
Sales by geographical area
3,326
30 122
847
331
164
Spain
Rest of Europe
America
Africa
Australia
Other countries
56
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.
ConstructionThe 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 EngineeringThe 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 ActivitiesIndustry is the main business line in the Other Activities division, obtaining an operating margin of 6%.
The Group´s 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
Peab
EPoC 2010 European powers of construction 57
Key Data (December 2010) Millions of euros
Assets
Non-current assets 1,077
Current assets 1,998
Total assets 3,075
Liabilities and equity
Equity 855
Non-current liabilities 676
Current liabilities 1,544
Total liabilities and equity 3,075
Income statement
Sales 4,004
Domestic sales 3,435
International sales 569
Construction sales 3,439
Non-construction sales 565
EBITDA 234
EBIT 158
Net profit 125
Net profit attributable to the Group
124
Other Key Data
Net debt 600
Order book 2,838
Market capitalisation 1,791
Sales by geographical area
3,435
303
266
Sweden
Norway
Finland
Sales by segment
2,433
1,006
565
Construction
Civil Engineering
Other activities
58
YIT’s roots date back to 1912, when Yleinen Insinööritoimisto 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 ServicesThe 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 FinlandThis 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 ServicesSales 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).
The operating margin from YIT's construction sales reached 5.8% in 2010, ranking the Finnish group second among the EPoC 2010.
YIT
EPoC 2010 European powers of construction 59
Key Data (December 2010) Millions of euros
Assets
Non-current assets 575
Current assets 2,542
Total assets 3,117
Liabilities and equity
Equity 883
Non-current liabilities 668
Current liabilities 1,566
Total liabilities and equity 3,117
Income statement
Sales 3,788
Domestic sales 1,444
International sales 2,344
Construction sales 3,788
Non-construction sales -
EBITDA 256
EBIT 221
Net profit 169
Net profit attributable to the Group
168
Other Key Data
Net debt 641
Order book 3,536
Market capitalisation 2,500
Sales by segment
2,282
464(58)
1,100
Building and Industrial Services
International Construction Services
Construction Finland Other activities
Sales by geographical area
1,444
513
238
576467
550
Finland
Sweden
Norway
Central Europe
Russia
Other countries
60
Enka’s history began in 1957 with the partnership between Şarık Tara and Sadi Gülçelik. In 2010, with sales of over €3,500 million and EBIT of €505 million, Enka is the main Turkish constructor.
The Group’s main shareholders are Tara Holding, A.S., which controls 49% of the Group shares, the Tara and Gülçelik 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.
Enka’s portfolio is divided into four segments: Energy, Engineering & Construction, Real Estate, and Trade & Manufacturing.
Engineering & ConstructionIn 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.
EnergyEnka's participation in energy projects dates back to the thermal power plants in Tunçbilek, Yatağan, Yeniköy and Kemerköy during the 1970s. Since then, ENKA has become the sole owner of the Gebze, Adapazarı and İzmir 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 EstateRental sales amounted to €280 million in 2010, with a profit from operations of €189 million.
Trade & ManufacturingTrade 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
Enka
EPoC 2010 European powers of construction 61
Key Data (December 2010) Millions of euros
Assets
Non-current assets 1,791
Current assets 3,518
Total assets 5,309
Liabilities and equity
Equity 3,294
Non-current liabilities 1,193
Current liabilities 822
Total liabilities and equity 5,309
Income statement
Sales 3,555
Domestic sales 2,543
International sales 1,012
Construction sales 858
Non-construction sales 2,697
EBITDA 584
EBIT 505
Net profit 422
Net profit attributable to the Group
412
Other Key Data
Net debt (2)
Order book 5,280
Market capitalisation 7,122
Sales by segment
2,025
858
280
392
EnergyRentalConstructionTrade and manufacturing
Sales by geographical area
2,543
136 48
828
Turkey
Russia and Kazakhstan
Rest of Europe
Africa and Asia
62
European construction and infrastructure group contacts
Region Name Telephone Email
Austria Marieluise Krimmel +43 (1) 537 00 2412 [email protected]
Bruno Moritz +43 (1) 537 00 4300 [email protected]
Nikolaus Mueller +43 (1) 537 00 7575 [email protected]
Belgium Jean-Paul Loozen +32 (2) 639 49 40 [email protected]
Pierre-Hugues Bonnefoy +32 (2) 800 20 35 [email protected]
Rick Neckebroeck +32 (2) 800 20 22 [email protected]
Luc Van Coppenolle +32 (3) 800 89 05 [email protected]
Central Europe Petr Kymlicka +420 (246) 042 480 [email protected]
Denmark Lars Andersen +45 (36) 10 25 30 [email protected]
Lars Kronow +45 (36) 10 27 86 [email protected]
France Marc de Villartay +33 (1) 5561 2716 [email protected]
Germany Franz Klinger +49 (89) 29036 8362 [email protected]
Michael Mueller +49 (89) 29036 8428 [email protected]
Greece Alexis Damalas +30 (210) 678 1100 [email protected]
Michael Hadjipavlou +30 (210) 678 1100 [email protected]
Ireland Michael Flynn +353 (1) 417 2515 [email protected]
Kevin Sheehan +353 (1) 417 2218 [email protected]
Padraic Whelan +353 (1) 417 2848 [email protected]
Italy Elena Vistarini +39 (02) 833 25122 [email protected]
Andrea Restelli +39 (02) 833 22062 [email protected]
Luxembourg Benjamin Lam +(352) 451 452 429 [email protected]
The Netherlands Paul Meulenberg +31 (20) 582 5060 [email protected]
Marcel Noordhuis +31 (61) 234 4631 [email protected]
Feike Oosterhof +31 (61) 234 4617 [email protected]
Norway Frode Lid +47 (23) 279 676 [email protected]
Aase-Aamdal Lundgaard +47 (23) 279 282 [email protected]
Thorvald Nyquist +47 (23) 279 663 [email protected]
Portugal Joao Costa da Silva +351 (21) 042 7511 [email protected]
Miguel Eiras Antunes +351 (21) 042 3825 [email protected]
Miguel Heredia +351 (21) 042 3047 [email protected]
Spain Javier Parada +34 (91) 514 5000 [email protected]
Miguel Laserna +34 (91) 514 5000 [email protected]
Sweden Andreas Adolphsson +46 752 462 21 03 [email protected]
Turkey Cem Sezgin +90 (212) 366 6036 [email protected]
UK Makhan Chahan +44 (0) 20 7007 0626 [email protected]
Jack Kelly +44 (0) 20 7007 0826 [email protected]
Nigel Shilton +44 (0) 20 7007 7934 [email protected]
Chris Watts +44 (0) 20 7007 7939 [email protected]
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