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.

1. EPoC 2010
European powers
of construction
June 2011

2. EPoC is an annual publication edited by
Deloitte and distributed free
Director
Javier Parada, partner in charge of the
Infrastructure Industry, Spain
Coordinated by
Margarita Velasco
Alberto Benito Benito
Edited by
CIBS
Contact
Infrastructure Department, Deloitte Madrid
Plaza Pablo Ruiz Picasso, S/N
Torre Picasso 28020 Madrid, Spain
Phone + 34 91 514 50 00
Fax + 34 91 514 51 80
June 2011

3. 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

4. Welcome to the
eighth edition of
European Powers
of Construction

5. Introduction
Six months after the end of the year 2010, EPoC 2010
examines the status of the major European listed
construction companies at December 2010 and its
position on key industry issues such as the level of
diversification, level of internationalisation, construction
activity margin or indebtedness levels.
We are pleased to present European powers of While discussing the internationalisation of the
construction (EPoC) 2010, our eighth annual publication European construction companies and how their
which identifies the main European construction successful attempts for diversification have positively
companies and discusses the situation of the impacted their revenues and margins, we cannot forget
construction sector. that usually diversification and international expansion
come at a cost. Therefore, a discussion on indebtedness
2009 and 2010 have been difficult years for the levels and diversification of both activities and locations
construction sector, following the 2008 credit crunch is also included in our analysis.
and the subsequent economic recession. The economic
downturn has been keenly felt across the real estate We maintain a section dedicated to profiles, which in
sector of most European countries and it has also the 2010 EPoC edition are focused on the top 20 listed
affected construction of public infrastructure. European construction companies. We present key
data regarding ownership structure, main activities and
However, this sector is very diverse and has international presence, goals and strategic objectives.
demonstrated its innovation over the years. Most of the In addition we have included an appendix for each
companies that we are analysing had anticipated the company that shows relevant data extracted from the
exhaustion of their traditional business models, based company’s financial statements for 2010.
on domestic construction either for the Public Sector or
for real estate developers, and were able to successfully We hope that you find the EPoC 2010 analysis of the
expand their business in terms of both geographical construction sector to be of interest, and that the
locations and activities performed. 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.
EPoC 2010 European powers of construction 5

6. Ranking of listed European
construction companies
The ranking of the Top 50 EPoC 2010 by sales volume France dominates the Top 50 in terms of total sales,
is headed by Vinci as in previous years. In addition, with also three companies listed within the top 5. There
Bouygues and Hochtief maintain their second and third are no more listed French constructor companies in the
place so there are no changes in the top 3 places of the remaining positions of the ranking.
EPoC 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
French, Spanish and British
in the top 50. With the consolidation of Hochtief in
2011, Spanish group ACS will achieve proforma sales
companies lead the EPoC
of €35,539 million stepping to the number 1 proforma
position in the EPoC ranking by revenue.
ranking by volume of sales but The United Kingdom has the largest number of
with certain differences in their companies in the top 50, with 13 companies, but
their relative size is smaller in comparison to Spanish
relative size 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.
Number of
Country Total Sales Average Sales
Companies
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
6

7. Top 50 European Powers of
Construction – ranking by sales
Market
EBITDA
Ranking Company Country FY END Sales (€ m) EBIT (€ m) Capitalisation
(€ m)
(€ m) (a)
1 Vinci SA France Dec 10 33,376 5,052 3,429 23,694
2 Bouygues SA France Dec 10 31,225 3,701 1,760 12,122
3 Hochtief AG Germany Dec 10 20,159 1,643 715 4,451
4 ACS, Actividades de Construcción y Servicios, SA Spain Dec 10 15,380 1,500 1,077 10,773
5 Eiffage SA France Dec 10 13,553 1,852 1,041 3,806
6 Skanska AB Sweden Dec 10 12,815 735 572 6,040
7 Strabag SE Austria Dec 10 12,777 735 299 2,516
8 Balfour Beatty Plc United Kingdom Dec 10 12,288 422 240 2,637
9 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 2,931
11 Bilfinger Berger SE Germany Dec 10 8,007 511 343 2,852
12 Koninklijke Bam Groep NV Netherlands Dec 10 7,611 206 (30) 1,261
13 Acciona SA Spain Dec 10 6,263 1,211 527 4,667
14 Carillion PLC United Kingdom Dec 10 5,991 265 227 1,819
15 NCC AB Sweden Dec 10 5,182 236 236 1,965
16 Obrascon Huarte Lain SA (OHL) Spain Dec 10 4,910 1,005 700 2,763
17 Sacyr Vallehermoso SA Spain Dec 10 4,820 572 394 3,530
18 Peab AB Sweden Dec 10 4,004 234 158 1,791
19 Yit Oyj Finland Dec 10 3,788 256 221 2,500
20 Enka Insaat Ve Sanayi AS Turkey Dec 10 3,555 584 505 7,122
21 Taylor Wimpey Plc United Kingdom Dec 10 3,034 220 215 1,396
22 Porr Group Austria Dec 10 2,826 103 49 280
23 Heijmans NV Netherlands Dec 10 2,680 83 48 402
24 Barratt Developments Plc United Kingdom Jun 10 2,450 71 61 339
25 Morgan Sindall Plc United Kingdom Dec 10 2,386 89 64 523
26 Kier Group Plc United Kingdom Jun 10 2,315 107 102 1,186
27 Interserve Plc United Kingdom Dec 10 2,182 123 87 393
28 Impregilo Spa Italy Dec 10 2,062 282 224 896
29 Astaldi Spa Italy Dec 10 2,045 230 174 527
30 Mota Engil Sgps SA Portugal Dec 10 2,005 237 132 377
31 Veidekke Asa Norway Dec 10 1,972 98 53 797
32 Lemminkainen Oyj Finland Dec 10 1,892 65 29 491
33 Persimmon Plc United Kingdom Dec 10 1,829 150 145 1,519
34 Ellaktor SA Greece Dec 10 1,753 279 167 618
35 Implenia AG Switzerland Dec 10 1,731 82 53 415
36 Galliford Try Plc United Kingdom Jun 10 1,390 37 33 319
37 Teixeira Duarte Engenharia e Construçoes SA Portugal Dec 10 1,380 150 84 272
38 Ballast Nedam NV Netherlands Dec 10 1,359 45 18 163
39 Keller Group Plc United Kingdom Dec 10 1,246 99 50 451
40 Costain Group Plc United Kingdom Dec 10 1,191 37 34 185
41 Bauer Aktiengesellschaft Germany Dec 10 1,132 166 88 613
42 Mt Højgaard Denmark Dec 10 1,114 30 13 178
43 Interior Services Group Plc United Kingdom Jun 10 1,106 16 13 64
44 Polimex Mostostal SA Poland Dec 10 1,048 63 40 407
45 JM AB Sweden Dec 10 958 95 95 1,303
46 Trevi Group Italy Dec 10 953 137 84 554
47 Grupo Soares Da Costa SGPS Sa Portugal Dec 10 894 88 50 88
48 Bellway Plc United Kingdom Jul 10 876 60 58 923
49 Grupo Empresarial San Jose SA Spain Dec 10 852 68 25 350
50 J&P-Avax SA Greece Dec 10 791 80 80 96
(a) Figures at May 2011
EPoC 2010 European powers of construction 7

8. Top 20 European Powers of
Construction – ranking by
market capitalisation
The ranking of the Top 20 EPoC 2010 by market
Vinci, Bouygues and ACS head capitalisation is headed by Vinci and Bouygues, which
are also the first companies in our ranking by sales.
the ranking of the Top 20 EPoC Among the rest of the companies, ACS, Enka, Ferrovial,
Acciona, OHL, Sacyr and Yit climb places in comparison
2010 by market capitalisation 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.
Market
Sales EBITDA (€ EBIT (€
Ranking COMPANY Country Capitalisation
(€ m) (a) m) (a) m) (a)
(€ 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 6,951
6 Skanska AB Sweden 12,815 735 572 6,040
7 Acciona SA Spain 6,263 1,211 527 4,667
8 Hochtief AG Germany 20,159 1,643 715 4,451
9 Eiffage SA France 13,553 1,852 1,041 3,806
10 Sacyr Vallehermoso SA Spain 4,820 572 394 3,530
11 Fomento de Construcciones y Contratas SA (FCC) Spain 12,114 1,435 774 2,931
12 Bilfinger Berger SE Germany 8,007 511 343 2,852
13 Obrascon Huarte Lain SA (OHL) Spain 4,910 1,005 700 2,763
14 Balfour Beatty PLC United Kingdom 12,288 422 240 2,637
15 Strabag SE Austria 12,777 735 299 2,516
16 Yit Oyj Finland 3,788 256 221 2,500
17 NCC AB Sweden 5,182 236 236 1,965
18 Carillion PLC United Kingdom 5,991 265 227 1,819
19 Peab AB Sweden 4,004 234 158 1,791
20 Persimmon PLC United Kingdom 1,829 150 145 1,519
(a) Figures at December 2010
(b) Figures at May 2011
8

9. Internationalisation and
diversification profiling of
the top 20 EPoC
A quick glance at the top 20 listed European On a smaller scale, Peab obtains 86% of its revenue in
construction companies, taking into account the Sweden and is also focused in the construction business
internationalisation level and the diversification of their from where 86% of its revenues are derived.
activities, will show that EPoC could be classified into
four main categories. International construction groups
The second group of companies is comprised of
“Domestic” construction groups companies whose primary source of sales is the
This group comprises companies whose primary construction business outside their country of origin.
source of revenue is construction within local markets.
International sales account for less than 40% of total Hochtief is the most international European construction
sales made. group, with 87% of its construction revenue being
earned in America and Asia/Oceania.
Vinci and Bouygues are without any doubt the first two
companies of our 2010 ranking taking into account total Contrary to Peab, Swedish companies NCC and Skanska
revenues. The international presence of both groups achieve over 40% of their revenues outside of their
is significant (€12,449 million and €9,719 million of home country. NCC works in Denmark, Finland and
total revenues, respectively), but they still achieve over the other Baltic countries. Skanska is active in the UK,
60% of revenues in France. In a similar way, although Eastern Europe and the Americas.
in recent years both French giants have diversified their
activity portfolio, their construction revenue represents
84% and 74% of their total revenue figure, respectively.
100%
90%
80%
Non-construction revenues / total revenues %
Enka
70%
ACS
60% "Domestic"
International Ferrovial
Conglomerates
Conglomerates
Acciona
50% Eiffage FCC
Sacyr Bilfinger
Carillion
40%
OHL
Balfour
Beatty
30%
Bouygues
20%
Peab International Construction
Vinci Groups
"Domestic"
10% Skanska
Construction Hochtief
Bam
Groups NCC Yit
Strabag
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
International revenues / total revenues %
EPoC 2010 European powers of construction 9

10. Carillion’s diversification has been oriented to provide
Nine of our EPoC 2010 support services and Eiffage has achieved a significant
presence in energy and concession sectors. Both
companies obtain at least companies generate over 40% of their revenues through
non-construction related activities, although given
50% of their revenues from the location of such activities, they must be primarily
considered as domestic.
non-construction activities. Enka has reached a significant position in Russia,
Eleven of them generate at least although the Turkish market still represents over 70%
of total revenues. In terms of activity, Enka is the most
40% abroad 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.
Finally, the limited size of their local markets encourage International Conglomerates
the Finnish company Yit, the Austrian company Strabag Finally, there is a group of companies that are highly
and the Dutch company Bam Groep to carry on their diversified and have significant international sales.
activities in other European countries.
Ferrovial and OHL achieve almost 70% of their revenues
“Domestic” conglomerates outside of Spain, with significant diversification.
A third group of companies is comprised of companies Ferrovial derives more than 60% of its revenue from
that have diversified their business portfolio to non-construction activities, mainly environmental
non-construction activities but conduct most of their services, airports and infrastructure projects, in the
business in domestic markets. UK, Poland and North America. OHL has significant
construction activities in the USA, Algeria and the
Spainsh companies ACS, Acciona and Sacyr have Middle East and is also especially strong in Mexico and
extended their activities to foreign markets. However, Brazil where its concession business is very significant.
in 2010 almost 70% of their activity was still performed
in Spain. In addition to their international expansion, FCC and Balfour Beatty obtain approximately 50% of
ACS, Acciona and Sacyr have diversified their business their revenues in foreign markets and non-construction
portfolios. They provide environmental services such activities. FCC’s diversification has been oriented mainly
as waste disposal or water treatment plants, energy- to environmental services in Austria, Germany,the
related services, transportation or infrastructure projects. UK and Eastern Europe. Balfour Beatty has a strong
Consequently construction revenue does not exceed presence in Asia and North America and has diversified
60% of total revenues. With the consolidation of its construction activity, providing professional services
Hochtief in 2011, ACS radically changes its profile with and support services.
proforma international sales of approximately 66%.
Hochtief consolidation also drives ACS to the number 1 Bilfinger is present in the five continents, obtaining
proforma position in the EPoC ranking by sales. approximately 58% of its revenues in foreign markets.
The German group has diversified its activities to include
industrial services and power services that represent
almost 50% of the group revenues in 2010.
10

11. Working Abroad:
Internationalisation of EPoC
The limited size of the Western European market, its In this context, the major European construction groups
evolution over the last years, as well as the experience have looked abroad for growth opportunities and, as of
gained by the European companies in the construction today, our 2010 EPoC are present in the five continents
sector and in other sectors where they have focused obtaining about 49% of their revenues outside of their
their efforts in recent years, have meant that the national borders. This trend has strengthened in recent
internationalisation of their business has become an years, and is expected to continue in the near future.
attractive model that most EPoC have decided to This diversification is focused on civil engineering and
pursue. other activities, excluding house building, which, due to
its very nature, is difficult to export.
After several years of low or no growth, investment
in the construction sector within the European Union The distribution of EPoC 2010 sales by geographical
decreased 3.6% in 2010, with expected 2011 growth of area is as follows:
only 0.2%.
Millions of Euros
International
Total Domestic Rest of Asia / Not
Company Country Sales/Total America Africa
Sales Sales Europe Oceania Specified
Sales
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
EPoC 2010 European powers of construction 11

12. The Americas - sales (millions of Euros) Balfour Beatty’s international sales are obtained mainly
in the USA. Construction sales and professional services
8,000 sales were approximately €2,500 million and €1,050
7,000 million, respectively. The acquisition of Halsall in 2010,
with a workforce over 300 people, opens the doors of
6,000
the Canadian market to the Group.
5,000
4,000 ACS is present in basically all the countries of the
3,000 American continent. Nonetheless, Mexico and the
United States are the two countries that show the
2,000
Group’s highest sales (approximately €1,000 million
1,000 each). In the last three years, ACS has acquired the
0 American groups Schiavone, Pulice and John Picone.
Hochtief AG
Skanska AB
Balfour Beatty PLC
ACS
Bouygues SA
OHL
Ferrovial SA
Vinci SA
Carillion PLC
Bilfinger Berger SE
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
The Americas million revenues each, in the International Construction
Hochtief has revenue of nearly €6,900 million in the and Concession Infrastructures divisions.
Americas, mainly the USA and Canada. Through its
subsidiary Turner, Hochtief is the number one general American sales of Ferrovial are mainly obtained in the
builder in the USA, being present in sub-segments such USA and Canada, where it obtained revenues over
as healthcare, education or office properties. It also €1,400 million in 2010. The Canadian highway 407
ranks first in the green building segment. Flatiron is their ETR in Toronto had revenues of €457 million, with an
brand to participate in complex infrastructure projects, EBITDA over sales of approximately 80%. This subsidiary
such as bridges and roads. In 2010, the Group acquired has been accounted for using the equity method since
a heavy construction contractor, E.E. Cruz, which the last quarter of 2010.
operates in the New York metropolitan area.
Vinci derived revenues of €944 million in 2010 from
Skanska reached sales of almost €4,500 million in North the USA and Canada. More than half of this figure was
America and more than €500 million in South America. obtained by Eurovia. In addition, 10% of the American
Through its subsidiaries, Skanska USA Building and revenues of the Group were obtained by Vinci Park
Skanska USA Civil, the Group has become a leader in the through its 445,000 parking spaces in the USA and
New York City area. They have participated in projects 126,000 parking spaces in Canada.
such as the PATH commuter train station that connects
New Jersey with Lower Manhattan, the reconstruction Two companies generate revenues of between €500
of the World Trade Center area in New York City and the million and €1,000 million. Carillion generates over €800
renovation of the Brooklyn Bridge. million through construction services in Canada and the
Caribbean area, while Bilfinger produced sales of almost
€600 million in the USA.
12

13. Asia/Oceania
Hochtief achieved revenues in excess of €10,600 million Asia/Oceania - sales (millions of Euros)
in Asia/Oceania in 2010, orchestrating its activities in the
12000
region through its majority shareholding in the Leighton
Group. Hochtief holds the leading position in the 10000
Australian market and this position is being used to step
up in particularly high-growth countries of Asia—such as 8000
India—and in the Gulf States. Hochtief’s main activities
in the Asia-Pacific area are infrastructure, construction 6000
and contract mining.
4000
Behind Hochtief, but with significant sales in the Asia- 2000
Pacific area, Bouygues obtained revenues of €1,643
million in this region during 2010, mainly in the Asian 0
Hochtief AG
Bouygues SA
Vinci SA
Carillion PLC
Bilfinger Berger SE
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
Africa - sales (millions of Euros)
to its operations in the Middle East and the rest of Asia.
Carillion and Bilfinger reached sales between €500 2000
million and €600 million in 2010, most of them in the
Middle East.
1500
Africa
Sogea – Satom is Vinci’s main brand in Africa where the
1000
Group obtained revenues of €1,698 million in 2010,
across the entire continent.
500
Bouygues achieved sales of €1,351 million in Africa
during 2010. These sales were obtained by Bouygues
Construction and Colas in similar proportions in 0
Vinci SA
Bouygues SA
Bilfinger Berger SE
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.
EPoC 2010 European powers of construction 13

14. Geographic diversification
of EPoC 2010
1
1
Canada
Acciona
ACS
Balfour B.
Bouygues
Bilfinger
Carillion
FCC 6
Ferrovial Chile, Argentina, 10
Hochtief Uruguay
OHL The UK 2
Vinci Acciona
ACS ACS
Balfour B. Balfour B.
2 Bilfinger
FCC
Ferrovial Bouygues
The USA
Hochtief Carillion 3
Acciona OHL Eiffage
ACSA Sacyr FCC
Balfour B. Skanska Ferrovial
4
Bilfinguer Vinci Hochtief
Bouygues Skanska
FCC Vinci
7
Ferrovial
Hochtief Paraguay, Bolivia 14
OHL 5
ACS 11 Eastern Europe
Skanska
Vinci Ferrovial Iceland, Norway, Acciona
Sweden, Denmark ACS
3 8 Balfour B. 8
Balfour B. BAM
Mexico Brazil Bilfinger Bilfinger
NCC 7
Acciona Bouygues
Acciona Peab Eiffage
ACS ACS Skanska
Balfour B. Enka
Bouygues Vinci FCC
FCC FCC YIT
Ferrovial Ferrovial 6
Ferrovial Hochtief
OHL OHL
Sacyr 12 OHL
Sacyr Skanska
Vinci Skanska Switzerland
Vinci Strabag
Vinci
Balfour B
4 YIT
9 Bilfinger
Ferrovial
Caribbean Area
Eurozone Strabag 15
ACS Vinci
Acciona Azerbaijan, Kazakhstan,
Balfour B.
ACS Tajikistan, Turkmenistan,
Bouygues
Balfour B. 13 Uzbekistan, Ukraine 17 19
Carillion
BAM
Enka Balkan Area Bouygues
Bilfinger Libya, Egypt Iran, Irak
FCC Enka
Bouygues
Ferrovial Balfour B. Ferrovial ACS ACS
Carillion
Sacyr Bilfinger OHL BAM Bouygues
Eiffage
Vinci Bouygues Strabag Bouygues
Enka
Enka Vinci Carillion
FCC
FCC Enka 20
5 Ferrovial
Ferrovial FCC
Hochtief Afghanistan, Pakistan
Hochtief 16 Ferrovial
Colombia, Venezuela, NCC
OHL Strabag
Ecuador, Peru OHL Turkey Enka
Vinci Vinci
Peab Vinci
Acciona Sacyr Balfour B.
ACS Skanska Bilfinger
Balfour B. 18 21
Strabag Enka
Bouygues Vinci OHL Russia South Korea, Japan
FCC YIT Vinci
Ferrovial Enka Acciona
Hochtief FCC Balfour B.
OHL Ferrovial Bouygues
Skanska Hochtief Hochtief
Vinci NCC Vinci
Vinci
YIT
14

15. 18
11
10
14
12
13 15 22
21
9
16
19
26
20
34
17
25
24
23
33 30
32
29
31 27
27
Australia
22 Acciona
30
China, Mongolia ACS
25
Balfour B. Eastern Africa 28
ACS Arabian Peninsula BAM
Balfour B. Bilfinger ACS
Bouygues ACS Bouygues Balfour B.
FCC Balfour B. Hochtief BAM
BAM 33
Ferrovial OHL Bouygues
Hochtief Bilfinger Sacyr Enka Western Africa
Vinci Bouygues Vinci Ferrovial
Carillion Sacyr ACS
Enka Vinci Balfour B.
Hochtief 28 Bilfinguer
23
OHL New Zealand Bouygues
South Eastern Asia Vinci 31 Eiffage
Balfour B. South Africa, Ferrovial
Balfour B. Bouygues Vinci
26 Mozambique
BAM Hochtief
Bouygues Israel, Lebanon, Jordan Vinci ACS 34
Hochtief Balfour B.
Vinci ACS Bilfinger Maghreb Area
29
Bouygues Bouygues
Ferrovial Hochtief Acciona
Madagascar
24 Sacyr Vinci ACS
Vinci Bouygues Balfour B.
India Vinci Bouygues
32 FCC
Acciona Ferrovial
ACS Angola, Namibia
OHL
Balfour B. Vinci
ACS
Bouygues
Bouygues
Ferrovial
Sacyr
Hochtief
Vinci
Vinci
EPoC 2010 European powers of construction 15

16. The Diversification of European
Construction Companies
The construction industry has a cyclical profile that is • They have diversified into activities related to long-term
significantly more pronounced than that of the economy contractual management.
as a whole. This is due primarily to the considerable
historical dependence on investment in infrastructure • They are activities that may serve as a source of
and on residential and non-residential building, the main contracts for the other business lines (construction,
areas of activity of the construction industry. This cyclical maintenance, facilities, concessions).
nature, causes many companies significant financial
difficulties in times of recession, and is the main reason • They seek stable/predictable cash flows that enable
underlying the diversification strategy implemented by high leverage of the investment to be made.
a large number of European construction companies in
recent years. • The activities are financially complementary to the
construction business (high EBITDA margins and stable/
Although at first glance it may seem that the predictable cash flows than enable a high leverage of
construction companies have diversified into a investments as opposed to more modest margins but
wide range of disparate activities with no common with a large cash generating ability without leverage as
denominator, a closer examination shows that these is the case with construction).
activities complement the construction business with a
full range of services throughout the entire infrastructure The construction industry has historically had relatively
cycle. These activities have, either directly or indirectly, low margins due to the high number of companies
certain of the following common characteristics: operating in the sector and to the strong competition at
a both local and international level. The diversification
• They share clients with the construction activity of the European construction companies is focused on
(Central or Local Government). activities with higher margins and more stable/predictable
cash flows.
100%
90%
Non - construction revenues / total revenues %
80%
Enka
70%
ACS
Ferrovial
60%
Acciona
Bilfinger Eiffage
50%
Carillion FCC
40% Balfour Sacyr
Beatty OHL
30%
Bouygues
20%
Vinci
Peab
Skanska
10% Hochtief
BAM Strabag
Yit
NCC
2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
EBIT/ total revenues %
16

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 The construction activity of
amongst the top ten groups with the greatest revenue
diversification. the major listed European
Similarly, Acciona, Sacyr, Eiffage, ACS, FCC, Bilfinger, construction companies
Carillion and Balfour Beatty present higher average
profitability than Yit, NCC, Skanska, Peab, Hochtief, reported margins of between
Strabag and Bam because they are more diversified.
3% and 5% in most cases in
Vinci and Bouygues present overall profitability from
sales of 10.3% and 5.6%, respectively, but as can be 2010.
observed in the graph below their highest profit margins
are to be found in the non-construction activities.
EBIT/ Sales
Construction
Company Other activities Total
activities
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%
EPoC 2010 European powers of construction 17

18. Financing the diversification
Construction activity generally does not require
The diversification process significant levels of investment in property, plant and
equipment or intangible assets, and needs low levels of
carried out by some of the major working capital. These two factors, together with the
traditionally low margins reflected in the construction
listed European construction industry, which would make it impossible to meet
high finance costs, mean that groups engaging solely
companies in recent years has in construction activities have not historically required
significant financing to perform their core activities.
required obtaining financing However, the business diversification implemented by
that is still reflected in the certain of the large European construction groups in
recent years has required significant financing, largely
consolidated balance sheets of because the financing is focused on businesses with
more predictable cash flows and, therefore, a greater
our EPoC 2010. degree of leverage.
100%
90%
Non - construction revenues / total revenues %
80%
Enka
70% Ferrovial
ACS
60%
Acciona
Bilfinger Eiffage
50%
Carillion FCC
40% OHL Sacyr
Balfour
Beatty
30%
Bouygues
20%
Vinci
Skanska Peab
10%
Bam
Hochtief
Strabag
NCC Yit
(1,000) (500) 0 500 1,000 3,000 5,000 10,000 15,000 20,000 25,000
Net Debt
18

19. On analysing the relationship between the net debt of Net Debt (Millions of Euros)
the large listed European construction groups and their
sales diversification levels, four categories emerge, the (1,000) 4,000 9,000 14,000 19,000 24,000
detail of which is as follows:
Ferrovial SA
• Strabag, Skanska, NCC, Yit, Peab, Hochtief and Bam
Groep are examples of groups which engage primarily Vinci SA
in construction. They have very low debt levels and,
on occasion, even present positive net cash positions. Eiffage SA
• Bouygues and Vinci engage primarily in construction, Sacyr Vallehermoso SA
with very high business volumes and a certain level
of diversification that has translated into higher debt. ACS
Additionally, on quantifying their absolute values, in
view of their size, they are positioned in the high net FCC
debt segment.
Acciona SA
• Balfour Beatty, Carillion, Bilfinger and Enka have
managed to diversify their traditional construction OHL
business without creating significant leverage. The
Bouygues SA
sectors on which Balfour Beatty and Carillion have
focused (basically support services and professional
Bam Groep NV
services) do not require significant financing. The high
margins of Enka have enabled the Turkish group to
Hochtief AG
maintain a favourable cash position.
Yit Oyj
• The Spanish groups Ferrovial, Sacyr, ACS, FCC, Acciona
and OHL and the French group Eiffage have made
Peab AB
a firm commitment to diversifying their business in
recent years, especially in the infrastructure concession NCC AB
sector. As opposed to the construction companies
engaging in the traditional building business, an Bilfinger Berger SE
analysis of the level of debt of groups operating in
the infrastructure sector must take into consideration Enka
the fact that they are very long-term projects with
predictable and stable cash flows and that, in general, Carillion Plc
the significant debt from these activities does not have
recourse to the group since they are based on project Skanska AB
finance schemes in which the only guarantee is the
asset being financed. Balfour Beatty Plc
Strabag SE
EPoC 2010 European powers of construction 19

20. Ferrovial is the EPoC 2010 group with the highest net Sacyr’s net debt amounted to €10,995 million at 31
debt. This debt is concentrated in its infrastructure December 2010, of which 45% is to finance its 20%
businesses which are also the most profitable segments. ownership interest in Spanish petrochemical company
Its airports division had EBITDA of €1,272 million in Repsol.
2010, but also contributed a negative net cash position
of €14,529 million to the group’s consolidated balance ACS’s net debt of amounted to €8,003 million at 31
sheet. The motorway division contributed EBITDA of December 2010, related basically to the financing of its
€630 million to the group in 2010 and net debt of 20% ownership interest in the energy group Iberdrola
€5,026 million. (€4,689 million) and the acquisition of shares of
Hochtief (€876 million). The remaining net debt of the
Similarly, Vinci’s net debt also arises from the group’s ACS group is related mainly to infrastructure projects.
non-construction businesses. Vinci Autoroutes
contributed positive cash flows of approximately €3,000 FCC’s net debt (€7,749 million) is related basically to its
million to the group, although it also contributed net environmental services division (€4,353 million), cement
debt of €13,965 million to the consolidated balance division (€1,288 million) and energy division (€924
sheet, which is in contrast to the positive cash position million).
contributed by its Contracting division.
Acciona’s net debt amounted to €6,587 million at
Eiffage’s Concessions and PPPs division contributed 31 December 2010 and relates basically to its energy
net debt of approximately €14,000 million to the division (€5,616 million), which obtained EBITDA of
consolidated balance sheet in 2010. EBITDA generated €822 million in 2010.
by this segment amounted to €1,361 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
The companies that have €3,822 million.
remained focused on the Our analysis is based on the debt as recorded in the
2010 consolidated financial statements of the respective
construction activity have lower EPoC companies. Consequently, the debt figures
analysed do not include debt of non controlling interests
debt than the companies that that are accounted for using the equity method, joint
ventures that are not fully consolidated and PFI’s over
have further diversified their which the respective company does not have control
(that in some cases may be significant).
portfolio
20

21. Top 20 listed
European companies
– Company profiles
EPoC 2010 European powers of construction 21

22. Vinci SA
Vinci SA was incorporated in 1899 by French engineers Contracting
Alexandre Giros and Louis Loucheur and in 2010 it Vinci Energies, Eurovia and Vinci Construction constitute
employed 180,000 people in around 100 countries. the Contracting business of Vinci, with 163,000
employees working on 262,000 projects in around 100
Its main shareholders are institutional investors, countries.
both in France (23.9%) and outside France (43.5%).
The remaining shares are controlled by individual Vinci Energies is a European market leader in energy
shareholders (12%), employees (9%), Qatari Diar Real and information systems. With a workforce of 32,000
Estate Investment Company (5.7%) and Financière employees in 21 countries, Vinci Energies generates
Pinault (3.8%). Treasury shares represent 2.1% of the more than 30% of its total revenues (€7,102 million)
total shares of the Group. outside France.
Vinci SA classifies its portfolio into two main segments: Eurovia is a world leader in transport and urban
Concessions and Contracting. development infrastructure. While it generates more
than 90% of its revenue in Europe (primarily in France,
Concessions Germany, the United Kingdom and Central Europe),
The Group’s concession business, with a network Eurovia also holds significant positions in the USA (North
stretching 4,385 km, represents more than half of Carolina, Florida) and Canada. With revenues of €7,930
France’s motorway network under concession. million and 40,000 employees, Eurovia has developed
an integrated range of expertise in transport and urban
Vinci Autoroutes is the Group’s motorway operator development infrastructure, industrial production
with revenues of €4,259 million, operating profit from (Eurovia manages a network of 430 quarries, 45 binder
ordinary activities of €1,923 million and a workforce of plants, 400 coating plants, 150 recycling facilities
approximately 8,500 people. and 10 factories producing road equipment) and
maintenance and services.
Vinci Concessions manages a complete portfolio of
transport infrastructure and public facility concessions in Vinci Construction is France’s market leader in
around 20 countries. 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:
With a presence on five • A network of French local subsidiaries, through Vinci
continents, Vinci is still Construction France, and internationally through
Vinci Construction UK, CFE mainly in Benelux, SKE in
the largest listed European Germany, Warbud, Prumstay-FCC and SMP in Central
Europe, Sogea-Satom in Africa, as well as 30 local
construction company and branches in Overseas France.
increased its sales by 8% in 2010
22

23. • Highly technical business lines include specialised civil Sales by geographical area
engineering technologies with Soletanche Freyssinet
(structures, soil foundations and technologies, nuclear 911
1,698
engineering), dredging with DEME and oil and gas 1,297
infrastructure with Entreprose Contracting. 1,081
• Management of complex projects with Vinci
1,470
Construction Grands Projects, operating worldwide on
major civil engineering and building structures.
1,844
20,927
The order book at December 2010 achieved €25,900 1,864
million, 49% of which relates to France and 51%
to outside France. By business line, the construction
2,284
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). France Rest of Europe
Central and Eastern Europe America
United Kingdom Africa
Key Data (December 2010) Millions of euros
Germany Asia - Pacific
Assets Benelux
Non-current assets 36,410
Current assets 20,003
Total assets 56,413
Sales by segment
Liabilities and equity
Equity 13,025 5,226
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
28,150
Net profit 1,900
Net profit attributable to the
1,776
Group Contracting Concessions
Other Key Data
Net debt 13,060
Order book 25,900
Market capitalisation 23,694
EPoC 2010 European powers of construction 23

24. Bouygues SA
Bouygues SA was incorporated by Francis Bouygues include the Gautrain rapid rail link between Pretoria and
in 1952, and at December 2010 it employed more Johannesburg, which was partially handed over for the
than 133,000 people with revenues of €31,225 million 2010 Football World Cup in South Africa, several luxury
(€9,719 million on international markets). tourist complexes in Cuba, the Hodariyat Bridge in Abu
Dhabi, the Machang Bridge and Pusan Port in South
Its main shareholders are foreign shareholders (40.3%). Korea, the Tangiers ferry port and the new container
In addition, other French shareholders control 22.6% of port in Morocco, and the Singapore Sports Hub, the
the Group, employees control 19% and SCDM controls world’s largest sports infrastructure private-public
18.1%. partnership.
Bouygues businesses are focused on two sectors: Bouygues Inmobilier operates in residential and
Construction, which includes Bouygues Construction commercial property, retail parks and urban
(building, civil works, energy and services), Bouygues development in France and Europe, employing 1,440
Inmobilier (property) and Colas (roads), and Telecoms/ people and achieving sales of €2,409 million in 2010.
Media, including TF1 and Bouygues Telecom.
Colas operates in around 40 countries worldwide,
Construction employs close to 65,000 people and achieved sales
Bouygues Construction operates in more than 80 of €11,592 in 2010. Founded in 1929 and acquired
countries and generates nearly half of its sales outside by Bouygues SA in 2000, it has become a leader
France. With 54,000 employees, sales of €9,002 million in the construction and maintenance of transport
and net profit of €538 million in 2010, the Company infrastructure, urban development and recreational
is primarily present in the European Union, Central and facilities. In 2010, France was the origin of 57% of the
Eastern Europe, Asia-Pacific and Africa. Some of the division’s sales, North America originated 19%, Europe
major projects currently underway or recently completed excluding France 16% and Africa/Indian Ocean/Asia 8%.
Telecoms/Media
The Group manages 43.1% of TF1, France’s leading
general-interest television channel with a 24.5%
Bouygues' diversification audience share at December 2010. The Group is also
present in pay television with channels such as Eurosport
prevented it from being and employs more than 8,000 people, with total sales
of €2,589 million in 2010.
affected by the decrease in its Bouygues Telecom covers 84% of the French
construction activities in 2010, population with its 3G+ network and has more than
11,000,000 mobile telephone customers and 808,000
which was offset by an increase fixed broadband customers. With more than 9,000
employees, the Group sales were €5,621 million in
in telecom and media sales 2010.
24