20100315 Fcc Corporativa Ingles 2009
description
Transcript of 20100315 Fcc Corporativa Ingles 2009
Servicios CiudadanosServices for Citizens
Corporate PresentationInvestor Relations
1. Strategic Framework2. Description and Business Model3. Business Areas4. Appendix
Services for Citizens
Corporate PresentationInvestor Relations
summary
Strategic Framework1.1 Urban Growth
1.2 Investment in Infrastructure
1.3 Sustainable Cities
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Corporate PresentationInvestor Relations
Services for Citizens
Urban Growth
5* Source: "World Urbanization Prospects: The 2007 Revision Population Database" - United Nations Population Division
The urban population has increased by almost 50% since 1990 and is expected to expand further by almost 50% by 2030
Rapid growth of cities requires large investments in transport, water, electricity and telecommunications infrastructure
World Population & Urban Concentration Percentage 1990 -2030*
5.000
5.500
6.000
6.500
7.000
7.500
8.000
8.500
1990 1995 2000 2005 2010 2015 2020 2025 2030
60%
55%
43%45%
47%
49%
51%
53%
57%
40%
45%
50%
55%
60%
65%
8 1%78%
75%73%71%
1990 2000 2010 2020 2030
OECD Countries
Mn. Inhabitants % Urban Pop.
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Investment in Infrastructure
6* Source: “Infrastructure to 2030” – OECD 2006
** Water estimates refer only to OECD and BRIC countries
Estimated Annual Investment in Infrastructure 2010-2020 (M$)*
0 100.000 200.000 300.000 400.000 500.000 600.000 700.000 800.000 900.000
OECD
TotalRailways
Roads
Electricity
Telecoms.
Water**
In view of the rapid growth of cities, the OECD predicts investment worldwide of over 2 thousand billion dollars per annum on infrastructure between 2010 and 2020
More than half of that investment will take place in OECD countries
The role of the private sector is increasing
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Sustainable Cities
7* Source: “Infrastructure to 2030” – OECD 2006
Sustainable Urban Infrastructure (OECD)*
Efficiency and reuse of wastewater
Paper, cardboard, plastic and packaging
Water
Organic waste
CO2, NOx emissions
Electricity
Transport
Fertilizers and biofuels
Recycling, reuse and energy from waste
Clean fuels
Renewable energies and energy efficiency
Public transport, intelligent transport systems
The concentration of people in cities puts intense pressure on the environment (emissions, waste…) and natural resources (water, electricity…)
Sustainable development has become a priority for the 21st century
Description and Business Model1.1 FCC Group
1.2 Leading Position
1.3 Strong International Presence
1.4 Balanced Business Model
1.5 Earnings Visibility
1.6 Healthy Financial Position
1.7 Solid Shareholder Remuneration Policy
1.8 Strategic Plan 2008-2010
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Corporate PresentationInvestor Relations
Services for Citizens
FCC Group
Leader in Environmental Services and Infrastructure in Spain and one of the foremost groups in Europe
12.7 billion € in revenues and 1.5 billion € in EBITDA in 2009
More than 90.000 employees
Operates in over 50 countries / 44% of revenues come from international markets
Balanced business model
Healthy financial position
Market capitalization of 3.7 billion €*
Stable and committed shareholding structure
Solid shareholder remuneration policy
9* As of 29 December, 2009
Leading position
#1 in waste management in Austria and Eastern Europe
#2 in water management in Spain and#5 in the world
#1 in end-to-end water and waste management in Latin America
#1 in environmental services in Spain and#2 in infrastructure construction
#2 in infrastructure construction in Austria and a leader in Eastern Europe
#1 in Spain's cement market
#1 in industrial waste management in Spain and #2 in the US
#1 in waste disposal in the UK
#2 in the world (by no. of concessions)
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Strong International Presence
11* 2009
Revenues* by Region
Austria30%
U.K.13%
Germany 12%
Eastern Europe22%
Other countries8%
Western Europe10%
USA5%Domestic
56%
International44%
44% of revenues come from international markets
87% of international revenues come from Europe, where FCC has become a leader in Infrastructure and Environmental Services
Presence in markets with considerable growth prospects
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Balanced Business Model
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Value creation supported by balanced Infrastructure, Services and Energy business activities, with a strong long-term growth potential
Over 50% of EBITDA comes from recurrent activities with high visibility on cash flow generation such as Environmental Services and Energy
Construction
INFRASTRUCTURE
48%
Cement
28% 20% Proactiva
2009 EBITDA by Business Area: An Integrated and International Group
Concessions (Global Vía) 50% Equity accounted
Realia (Real Estate)
SERVICES & ENERGY
52%
EnergyVersia
5%5%
Environmental Services
42%50% Equity accounted
50% Equity accounted
Earnings visibility
++ ++
Revenues 09
12,699.6 M€
Energy1%
2.8x earnings 09
1.5x earnings 09
Regulated tariff
Coverage
High visibility over 86% of earnings
Environmental Services linked to public, regulated and long-term contracts
Recurrent earnings with guaranteed minimum energy tariffs
Backlog 09
34,960 M€
Infrastructure31%
Energy
:: ==Infrastructure
57%
6.6x earnings 09Environmental
Services69%
:::: ==Environmental
Services28%
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++
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Healthy Financial Position
14* Net Debt and EBITDA, both with recourse. Data as of FY 2009
Financial Leverage 2009
Equity
Net Debt
29%
71%
62%
38%Without recourse
With recourse62%
38%
Infrastructure24%
Debt Structure and Maturity*
Services and Energy73%
Other3%
Leverage at a reasonable level
Debt structure in line with cash-flow visibility
Strong liquidity position with over 4 billion € in cash and equivalents plus available credit lines*
3.45*Net Debt
EBITDA=
5.74Operating C.F.
Financial Expenses=
14%
25%26%
15%20%
86% Long Term
Dec. 10 Dec. 12Dec. 11 Dec. 13 > Dec. 13
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Solid Shareholder Remuneration Policy
15
0%
1%
2%
3%
4%
5%
6%
7%
2005 2006 2007 2008 2009
Dividend Yield Dividend Paid per Share
2005 2006 2007 2008 2009
1.36 €1.61 €
2.05 € 2.13 €
1.57 €
2.5% capital amortization
+
50% 50% 59% 59%
Pay-Out:
46%
Pay-Out at 59% with a 6.7% dividend yield in 2009
Dividend policy: Minimum Pay-Out of 50%
4% average dividend yield in the last 5 years
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Strategic Plan 2008-2010
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Consolidate Current Businesses
Sustain market share
Integrate acquired businesses
Promote Expansion Opportunities
Environmental Services and Concessions
Europe, USA and emerging countries
Entry into renewable energies
Increase Organization Efficiency
Process reengineering
Cost optimization
Business Areas
1.1 Environmental Services
1.2 Construction
1.3 Cement
1.4 Energy
1.5 Versia
1.6 Concessions
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Description and Prospects
Corporate PresentationInvestor Relations
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Environmental Services
18* 2009
Revenues* by Type of Business
41%
28%
24%
7%
Environment Spain
Environment International
Water
Industrial Waste
Revenues* by Region
Backlog over annual revenues*
5.3x
3.2x
14x
EnvironmentSpain
EnvironmentInternational
Water
6.6x annual revenues
Strong exposure to institutional demand
Stable, regulated and long-term contracts
High entry barriers
Capital-intensive projects with private funding (PFI and PPP)
Spain65%
U.K20%
Central & EasternEurope
12%USA3%
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Environmental Services: Prospects
Market increasePrivatization of environmental services
Geographic expansion
Large economies of scope Shared customers
Full range of environmental services
Strong increase in demandGreater regulatory requirements
Demographic expansion
Services for Citizens
20* Source: Eurostat 2007
Environmental Services: Prospects
0%
10%
20%
30%
40%
50%
60%
70%
The Netherlands
Germany
Belgium
Austria
Norway
Switzerland
Sweden
Luxembourg
Estonia
Denm
ark
Ireland Italy
Finland
United Kingdom
Spain
France
Poland
Romania
Iceland
Greece
Slovenia
Portugal
Bulgaria
Hungary
Latvia
Cyprus
Slovakia
Lithuania
Malta
Czech Republic
% of Municipal Solid Waste Recycled in the EU*
EU 2020 Objective: 50%
The European Waste Framework Directive aims for 50% of municipal solid waste to be recycled by 2020
The European Union currently recycles around 40% on average
FCC operates in countries which recycle around 25% of their waste
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Construction
21*2009
Revenues by Region* Revenues* by Type of Business
62%
25%
69%
22%
9%
Civil Engineering
Non-Residential Building
Residential Building
High entry barriers
Focus on civil engineering
High operating flexibility
Low investment needs
Spain 47%
Germany9%
Eastern Europe13%
Others5%
Austria22%
Rest of Europe4%
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221 OECD estimates: “Infrastructure to 2030” report
Construction: Prospects
Application of European Funds to develop infrastructure
>300 billion € in 2007-2013
50% allocated to Eastern Europe
Development of transport infrastructure in OECD countries
≈ 150 billion €/year in 2010-20201
Exposure through FCC and Global Via
Extraordinary Infrastructure Plan (Spain)15 billion € in 2010 – 2012
EIB to finance 50%
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23*Source: European Commission and Eurostat
0
10.000
20.000
30.000
40.000
50.000
60.000
Luxembourg
Denm
ark
Cyprus
Malta
Ireland
Austria
Finland
Sweden
The Netherlands
Belgium
Estonia
Slovenia
Latvia
Bulgaria
Lithuania
United Kingdom
Slovakia
France
Romania
Greece
Portugal
Hungary
Germany
Czech Republic
Italy
Spain
Poland
0%
5%
10%
15%
20%
25%
30%
European Funds 2007-2013 by country*M€ %/GDP 2006
The European Regional Development Fund (ERDF): >300 billion €
50% of its funds are allocated to Eastern Europe (>150 billion €)
Investment in infrastructure to promote economic cohesion among the less developed regions is an ERDF priority
Construction: Prospects
Services for Citizens
Cement
24*2009
Region where CPV operatesCement Factories
Leader in Spain Revenues by Region*
Revenues and EBITDA Margin 2005-2009
27.9%29.3%32.5%31.9% 33.1%
0
250
500
750
1.000
1.250
1.500
1.750
2005 2006 2007 2008 2009
Revenues
High entry barriers
High cash flow generation
Capital intensive business
Spain 71% USA
14%
U.K. 3%
Tunisia9%
Rest3%
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251 Source: Oficemen, NSI
2 Estimates: US Portland Cement Association (PCA)
120
125
130
135
140
145
150
2008 2009 2010 2011 2012 2013 2014
Cement consumption per inhabitant1 (Spain)
400
500
600
700
800
900
1.000
1.100
1.200
1.300
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Tons AverageConsumption per inhabitant Mn. Tons
Cement consumption in the US2
Cement consumption in Spain has declined by almost 50% since 2007, approaching a 20-year low
Management focused on optimizing free cash flow
Cost saving
Energy efficiency
Exposure to markets with growth potential
Cement: Prospects
2009
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Energy
26
Location
Wind farms
Solar power plantsThermo-solar plants
Wind
Solar
Thermo-solarunder development:2010-2013
Installed Capacity (MW)
Wind: • Pool price + 31.0 €/MWh• With floor/cap of 75.4/89.9€/MWh
Solar : 441.7€/MWh
Thermo-solar: • Pool price + 268.7 €/MWh• With a cap of 363.9€/MWh
Recurring revenues with guaranteed tariffs
Natural hedge of energy cost in the Cement business in Spain (≈15% of the production cost)
Considerable scope for organic growth
422 MW
20 MW
100 MW
+
165 MW
422 MW
20 MW
Biomass
Regulated Tariff
Energy form Waste(Biomass)
165 MW
StatusOperational 30%
LocationSpain 90 MW
Capacity (MW) FCC StakeZabalgarbi
Operational 100%U.K. 35 MWAllington
Operational 100%U.K. 27 MWEastcroft
Operational 100%Austria 13 MWZisterdorf
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Versia
27*2009
Revenues by Type of Business*
35%
28%
10%
Logistics
Handling
Urban Furniture
Car Parks
6%
Vehicle Testing
8%
Municipal services linked to the Group’s strategic activities
Management focused on consolidation of current businesses
Spain68%
Western Europe29%
America3%
Geographical revenues breakdown*
Maintenance & other
13%
Services for Citizens
Concessions
28* Includes the value of pending concessions attributable to GVI from FCC Group at 31-12-09
41 Infrastructure concessions under management with an average life of 31 years
Equity attributable to FCC of 619 M€*
Growth aimed on project development (greenfields) in OECD countries
Nº of Concessions Countries Key Figures
TOLL ROADS 23 6 1,500 km. managed17 Real toll8 Shadow toll1 High-occupancy
toll
13 Spain2 Portugal2 Ireland2 Chile2 Mexico2 Costa Rica
CITY RAILWAYS 7 83 km. managedSpain
AIRPORTS 2 2 9 million passengers per year
1 Spain1 Chile
HOSPITALS 2 1,100 bedsSpain
PORTS 7 1,500,000 m23 commercial4 seaport
Spain
Appendix1.1 History1.2 Shareholder Structure
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Corporate presentationInvestor Relations
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History
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• FOCSA and Construcciones y Contratas S.A. merge to create FCC, becoming Spain’s leading company in the sector.
• The Environmental Services division begins expansion abroad with contracts for the collection of urban solid waste and street cleaning in Caracas (Venezuela).
1900 1911 1944 … 19791944 1979
• Founded in Barcelona, Fomentode Obras y Construcciones S.A. (FOCSA) was awarded the enlargement of the Port of Barcelona.
• First Environmental Services concession to clean and maintain Barcelona’s sewer system.
• Construcciones y Contratas, S.A. is founded in Madrid.
• First large Infrastructure contract abroad: the laying of 640 Km coaxial cable for the telephone system in Tripoli (Libya).
1981 1985
• The Company enters the Urban Furniture sector with the installation, maintenance and exploitation of more than 2,000 bus stops in Madrid.
1988
• The Company wins its first significant water management contract for the city of Vigo.
1992
1994 2000 1944 … 19792002 2005
• The Company enters the airport handling sector with a contract for Las Palmas airport.
• FCC and Caja Madrid merge their real estate businesses in the company Realia Business S.A.
• FCC takes over CementosPortland Valderrivas.
• FCC Group buys Grupo LogísticoSantos, to create Spain's leading independent logistics operator.
2006
• Acquisition of Alpine, WRG, ASA
2007
• Acquisition of HRS• Realia goes public.• FCC and Caja Madrid establish Global Vía Infraestructuras out of their respective infrastructure concessions.
2008
• FCC Energía is formed with the acquisition of 14 wind farms (422 MW) and 2 solar plants (20 MW)
Plan 10
From local company to international group leader in Environmental Services and Infrastructure, with more than 100 years experience
Employees: 1.0%
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Shareholder Structure
31As of 24-02-2010
53.9%
T-Stock: 8.6%
RBS: 3.4%
Domestic Institutional: 13.0%
Foreign Institutional: 11.0%
Retail: 9.1%
Stable and committed shareholding structure guaranteeing permanent support to company’s management
38% Free-Float
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