Performance in the year

Transcription

1 services Ferrovial Services experienced a very positive year thanks to strong performance across its businesses in the UK and Spain, two strategic acquisitions, and a new organizational structure. Ferrovial Services is an international leader in the efficient delivery of municipal and environmental services solutions, and transport infrastructure operation and maintenance. It offers a wide range of innovative solutions to diverse public and private sector clients using a wholelife asset management approach. City transformation provides an opportunity to innovate the delivery of services to local communities. Ferrovial Services is able to support local governments by generating savings, improving the quality of public services, and encouraging citizen participation through integrating service delivery. Ferrovial Services is perfectly placed to support cities through its broad portfolio of services and its proposition based on long-term public-private partnerships and service integration, which ultimately improve citizens living standards. Performance in the year Ferrovial Services maintained its leading position in the UK and Spanish markets. It also reinforced its position in Poland, Chile, Qatar and Portugal in Having completed the integration of Amey and Enterprise in the UK, and of Cespa and Ferroser in Spain, Ferrovial Services is a leading provider of infrastructure-related services. With a footprint in over 150 major cities, the company attained a record 3.7 billion euro in revenues in 2013, 26% more than in The order book also reached an all-time high of 17.7 billion euro, 40% more than at the end of This increase is due to consolidating nine months of Enterprise and one year of Steel Ingeniería, which were acquired during the year, and to landing significant contracts in the United Kingdom and Spain. Order intake amounted to over 2.5 billion euro in the fourth quarter alone. 36

2 sales Billion euro EBITDA Million euro backlog Billion euro operating cash flow Million euro London Underground. United Kingdom. José Manuel Ballester. London Underground. United Kingdom. José Manuel Ballester.

3 Operating cash flow in the year totalled 359 million euro, with very good performance in both Spain and the UK. In the last two years, Ferrovial Services operating cash flow totalled 918 million euro. Two strategic acquisitions In February, Ferrovial acquired Enterprise, one of the UK s leading providers of services to utilities (power, gas and water) and the public sector. Ferrovial Services acquired the company from international investor 3i Group for 474 million euro. The merger of Amey and Enterprise created a company with a much broader service offering and one of the most diverse players in the UK market. Since Enterprise s integration in Amey, it became part of a single operating company. This acquisition has provided an inroad into the utilities services sector and the growing environmental services market in the UK, while also creating value through synergies within the resulting Amey. As a result of the integration, Amey has one of the most diverse service portfolios in the UK public and regulated sectors. With 21,000 employees and annual revenues in excess of 2.6 billion euro, the company covers a broad range of end-to-end services, from road and railway maintenance to waste management and treatment through to utilities maintenance services, facilities management and justice services. All of these services are underpinned by an asset management capability. Ferrovial Services also acquired 70% of Steel Ingeniería, a specialized mining services company in Chile, for 28 million euro in This operation has enabled Ferrovial Services to enter Latin America and the booming mining sector. Steel Ingeniería, founded in 1998, is specialized in industrial maintenance, mechanical and electrical assembly, and mine operation and maintenance. Chile is the world s third-largest copper producer and holds close to 30% of the world s reserves. Chilean mining companies outsource over 5 billion euro in services. 38 Street cleaning in Liverpool (United Kingdom) Topographical study in the Andes, Chile

4 A new organization In 2013, Ferrovial Services also announced a new organization structure that addressed the challenges and positioned the business to best optimise the opportunities whilst growing profitably. The new organization is based on three main principles: Segmenting the company into geographic Business Units: UK, Spain & International. Establishing new Centres of Excellence that develop expertise which can be exploited by the three Business Units. Creating a structure that facilitates integrated service delivery and cross-selling. Centres of Excellence, knowledge hubs Ferrovial Services has created four Centres of Excellence to develop additional capabilities for the Business Units. Each Centre of Excellence comprises multidisciplinary teams of experts in their respective areas of knowledge. The Centre of Excellence for Cities is designed to promote and scope a new approach to municipal service delivery. It aims to lead and develop a proprietary model using technology and data to reengineer the way that services are delivered and to engage citizens in the use of technology to ultimately optimise economic efficiency and service quality. This Centre of Excellence is working with world-leading institutions such as Massachusetts Institute of Technology (MIT) and the Centre for Intelligent Infrastructure Innovation (Ci3), among others. The Centre of Excellence for the Environment is focused on developing technical competence for the Business Units throughout the environmental assets life cycle, from the initial planning and draft designs through to designing the most appropriate solution, bidding for opportunities, technical supervision during construction and assistance during operations. The Centre constantly drives improvements, shares best practice and helps to implement changes with the Business Units. This Centre of Excellence also identifies environmental and industrial risks and actively engages in waste management research. The Infrastructure Maintenance Centre of Excellence supports and develops projects across capabilities such as energy efficiency, facilities management or road maintenance. Its primary objective is to support the Business Units to share and utilise best practices in sales and tenders, starting up new contracts, and searching for new lines of business. This Centre shares knowledge, codifies standards, manages a network of experts, and innovates infrastructure maintenance. The Asset Management Centre of Excellence supports all the Business Units with consulting, design and end-to-end management of infrastructure assets in a structured, predictable way that provides added value to clients. This Centre also enables Ferrovial Services to gain a foothold in new markets with a distinctive, unique offer that creates a point of differentiation from the competition. 39

5 United Kingdom Transforming service delivery Ferrovial Services UK business Amey is one the UK s leading providers of local government services, environmental services, utilities services, social and transport infrastructure. Amey obtained 2.2 billion euro in revenues in 2013, an increase of 49% year-on-year, while EBITDA amounted to 137 million, a 13% increase. The Ferrovial Services order book in the UK totalled 11.2 billion euro, an increase of 50% on Ferrovial Services has doubled its revenues in the UK after integrating Enterprise into Amey and being awarded major contracts from leading public and private sector clients. The most important contracts in 2013 were: Milton Keynes Council: design, construction and operation of an end-to-end waste management facility. 266 million euro. 18 years. United Utilities: pipeline and water mains maintenance in northwest of England. 264 million euro. 5 years. Highways Agency: Area 6 maintenance. 251 million euro. 5 years. Highways Agency: Area 8 maintenance. 234 million euro. 5 years. Severn Trent Water: Upgrade drinking water mains in the Midlands and in Mid-Wales. 206 million euro. 5 years. Hammersmith & Fulham, London Borough of Kensington & Chelsea: facility management.181 million euro. 5 years. Gloucestershire City Council: road network maintenance. 171 million euro. 5 years. 40 Management of hydraulic installations in the United Kingdom

6 Western Power Distribution: Upgrade of power lines. 143 million euro. 5 years. Liverpool City Council: Roads maintenance and street cleaning services. 132 million euro. 9 years. Northamptonshire County Council: waste collection. 90 million euro. 7 years. Yorkshire Water: water treatment infrastructure maintenance. 87 million euro. 5 years. Northern Gas Networks: maintenance of gas network infrastructure. 80 million euro. 4 years. Ferrovial Services Spain The Infrastructure area focuses on energy efficiency, facility management and infrastructure maintenance projects in a variety of sectors including healthcare and airports, road maintenance, air traffic management, and ancillary services ranging from the management of sports facilities and ambulance services to call centres. The Treatment and Industrial Waste Management area develops innovative solutions applicable throughout the waste life cycle (collection, treatment and recycling) by leveraging its extensive experience in specialized industrial services such as waste collection and cleaning of confined spaces. Revenues in 2013 were in line with 2012 despite the difficult economic situation in Spain. In particular, the order book expanded by 21% to 6.3 billion euro. Latest-generation end-to-end services Ferrovial Services Spain is the business unit resulting from the integration of Cespa and Ferroser. As a result of this business combination, it is able to provide end-to-end solutions which meet the clients current and future needs, with a broad range of services to offer the market and a unique operating model. To deliver these services efficiently, Ferrovial Services Spain has three business lines: The Local Government area provides a broad range of innovative, sustainable services which meet the city s primary needs. It also enables local government to reduce spending substantially through efficient management of available resources. Marqués de Valdecilla University Hospital, Santander Madrid-Atocha Renfe station 41

7 The most notable contracts obtained in the year include: Cantabria Health Service: management of all non-medical services at the Marqués de Valdecilla University Hospital. 567 million euro. 20 years. Madrid City Council: Street cleaning and maintenance of public and green areas in 4 districts: Centre, Chamberí, Tetuán and Argüelles. 307 million euro. 8 years. Renfe: On-board passenger care, food service, transport logistics and procurement on Renfe s long-distance train services. 267 million euro. 4 years. Madrid Health Service: cleaning services for hospitals: La Paz, 12 de Octubre, Hospital Central de la Cruz Roja, Severo Ochoa, Cantoblanco, Móstoles, Fuenfría and José Germain. 85 million euro. 3 years. Teguise City Council (Canary Islands): urban waste collection. 19 million euro. 12 years. Ministry of Infrastructure: Upkeep and maintenance of 170 km of roads and power supply infrastructures. 18 million euro. 4 years. Ferrovial Services International New geographies Ferrovial Services International was created to strengthen Ferrovial Services growth in new markets. It currently operates in Chile, Poland, Portugal and Qatar. Alicante City Council: Street cleaning and household waste collection, treatment, reuse and abatement. 76 million euro. 8 years. Telefónica: Maintenance of data processing centres. 39 million euro. 15 years. Iberia: Maintenance and cleaning of facilities. 34 million euro. 4 years. Madrid Health Service: Cleaning services at health centres. 29 million euro. 3 years. 42 Almería City Council: Green area maintenance. 20 million euro. 4 years. Castilla & León Regional Government: Maintenance and energy services at Social Services buildings. 20 million euro. 10 years. Doha International Airport (Qatar)

8 With the acquisition of Steel Ingeniería, Ferrovial Services began operations in Chile. Since then, Steel Ferrovial Servicios has landed new contracts, including cleaning the furnaces at Chuquicamata Mine for 4 years and supplying equipment to the Radomiro Tomic and Gabriela Mistral mines during the next 5 years. Ferrovial Services operates in Poland through FBSerwis, a joint venture with Budimex, the country s largest construction company. Its main contracts include upkeep of Expressway S7 and maintenance of the A4 Motorway and the National Stadium in Warsaw. Ferrovial Services is one of the leading providers of municipal waste management services in Portugal. In 2013, the company obtained a new contract to build and maintain the LIPOR landfill in Póvoa do Varzim (Porto) for 25 years, and it renewed its municipal waste collection contract in Planalto Beirão for 9 years. In Qatar Ferrovial Services commenced three maintenance contracts worth 169 million euro at Doha International Airport, which will be inaugurated in the coming months. Solid foundations for future growth In summary, 2013 was a key year in the establishment of Ferrovial Services profitable growth strategy. Operating performance in the core markets remains solid, acquisitions in the year reinforced business capacities and competitive position, and a new organization structure was put in place to continue driving profitable growth. National Stadium (Warsaw, Poland) Lipor treatment plant in Póvoa do Varzim (Oporto, Portugal) 43