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Servicios Ciudadanos

Services for Citizens. Servicios Ciudadanos. November 2010. 1. Services for Citizens. FCC Overview. 1.1 What is FCC? 1.2 Balanced Business Model 1.3 Consolidated International Presence 1.4 Sound Financial Position. What is FCC?. Citizen Services.

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Servicios Ciudadanos

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  1. Services for Citizens Servicios Ciudadanos November 2010

  2. 1 Services for Citizens FCC Overview 1.1 What is FCC? 1.2 Balanced Business Model 1.3 Consolidated International Presence 1.4 Sound Financial Position

  3. What is FCC? Citizen Services International leading group in Environmental Services and Infrastructures #1 in waste disposal in the UK #1 in environmental services in Spain and #2 in infrastructure construction #2 in infrastructure construction in Austria and a leader in Eastern Europe Top 10 worldwide (€ 3 billion assets) #1 in waste management in Austria and Eastern Europe #1 in industrial waste management in Iberia and #2 in the US #2 in water management in Spain and #4 in the world #1 in Spain's cement market #1 in end-to-end water and waste management in Latin America

  4. Balanced Business Model Citizen Services EBITDA1 by Business Area SERVICES & ENERGY 58% INFRASTRUCTURE 42% Environmental Services Urban Services Energy Construction Cement 45% 8% 5% 27% 15% • Value creation supported by balanced infrastructure, services and energy business activities, with a strong long-term demand potential, based on an unstoppable urban growth. • Close to 60% of EBITDA comes from recurrent activities with high visibility on cash flow generation such as environmental services and energy (1) 9M 2009

  5. Consolidated International Presence Citizen Services International Revenues1 Construction30% International45% Services12% Domestic55% Cement2% • 45% of revenues come from international markets • Mainly from Europe (85%), where FCC has become a leading player in Infrastructures and Environmental Services • International backlog has grown by 17% in the last twelve months1 (1) 9M 2009

  6. Sound Financial Position Services for Citizens Financial leverage1 29% Equity Operating C.F. = 5.74 38% Without recourse Financial Expenses 71% Net debt Net Debt With recourse 62% = 3.452 EBITDA Debt structure1 Services & Energy73% Infrastructure24% Other3% • Debt structure by area is in line with cash-flow visibility • Strong liquidity position with over 1.2 billion € in available credit lines3 (1) FY 2009 (2) Net Debt and EBITDA, both with recourse (3) As of 9M10

  7. 2 Services for Citizens FCC Strategy 2.1 Strategic drivers 2.2 Priorities by area 2.3 2010 targets

  8. Strategic Drivers Citizen Services Growth Reinforce Internationalization Process • Infrastructures • Environmental Services & Water • Renewable Energies Above 60% of sales from abroad in 2013, mostly from key areas Profitability Financing Balance Sheet Management • Working capital restraint • Financial leverage reduction • Active management of asset portfolio Increase Organizational Efficiency • Process reengineering • Cost optimization • Synergy Procurement 200 Mn€ of additional cost savings as from 2011 Target Net Debt to Ebitda ≤ 3x

  9. Environmental Services Citizen Services Features Revenues by type of business1 Revenues by region1 • High component of public service • Stable, regulated and long-term contracts • High entry barriers • Capital intensive projects • High operating margins • High earnings visibility (backlog) Domestic 64% EnvironmentSpain 41% U.K. 18% EnvironmentInternational 28% Central & Eastern Europe 13% Water 23% USA 3% 8% Industrial Waste Growth in near markets (“buy and build”) • Strengthen position in Recycling area in coreEU Markets (Spain, UK and Central Europe): EU foresees 35 % waste generation growth up to 2020, whereas European Waste Directive2 aims for 50% of urban waste to be recycled by 2020 against current 40%. • Water business expansion based on BOT projects in developing countries. Water infrastructure needs in 2010/2020 will exceed combine investment in transport infrastructure and energy3. • Gear on our branding quality to raise capital from international banking support (agreement with EBRD and World Bank). (1) 9M 2009 (2) Source: Eurostat (3) Source: “Infrastructure to 2030” – OECD

  10. Infrastructure Citizen Services Features Revenues by type of business1 Revenues by region1 • Specialized in large infrastructures (civil works) • High entry barriers • Operating flexibility • Strong cash flow generation • Backlog covers ≈ 18 months of production Austria 22% Domestic 45% Civil Works Germany 10% 76% Eastern Europe 13% Other countries 5% Non residential building 15% Rest of Europe 5% 9% Residential building Reinforce internationalization process with focus in 5/6 markets • A 2-folded strategy: Maintain EU “Home Markets” position plus strong expansion in 5/6 new selected quality jurisdiction. FCC international backlog has increased by over 20% since final 20081 . Some of the most relevant in-take in non-local markets are as follows: • Algeria: 1.293 M€ • Panama: 1.220 M€ • Extraordinary Investment Plan (PEI) in Spain might partially offset the impact of public demand restrictions for infrastructure • Transport Infrastructure concession unit (50% stake in GVI) to crystallize value in the medium term (consolidation > growth > transfer) • UK: 366 M€ • Mexico: 266 M€ • Rumania: 220 M€ (1) 9M 2009

  11. Energy Citizen Services Features Installed capacity (MW)* Location • Recurrent revenues with regulated tariffs • Capital intensive projects • Non recourse financing • Natural hedge of energy cost in the Cement business in Spain (≈15% of the production cost) Solar 20 MW 20 MW 422 MW Wind 422 MW + Thermo-solar Under development: 2011-2014 100 MW Wind farms Thermo-solar plants • *Not including: • 165 MW of “Energy from Waste” (biomass) installed within the environmental division • 100 MW of wind capacity awarded in Catalonia (Spain) to be installed as from 2013 • 60/80 MW of wind capacity to be installed in FCC’s U.K landfills Solar power plants Growth through green field projects in markets with higher potential • Organic and self financing growth: Development of 2 thermo-solar projects in 2011/2014 (c40% growth in area revenues). Operating cash flow and project finance debt to back organic growth. • Synergies: Explore green field opportunities in Group diverse locations (UK, USA and Central Europe). • In house think-tank. New lines of activities from Energy Efficiency Services (Efitek), roof solar installation, energy and electric vehicle infrastructure. (1) Source: Eurostat 2009

  12. Cement Citizen Services Features Leading position in Spain Revenues by region1 • High entry barriers • Mature industry • Strong cash flow generation • Temporary low demand situation Domestic 67% USA 15% Tunisia 10% Rest 6% Region where CPV operates Cement Factories Maximize cash flow generation • Focus on profitability and reinforcing leading position centered in the Spanish Market. • Enhance competitive leadership in Spain after the hard landing suffered in 2007/2010 (a 20-year low) • Management focused on increasing efficiency improvement and cost optimization • Plan 100 + → 71 M€ of recurrent savings in 2009 and goal of > 100 M€ savings in 2010 • Alternative fuel replacement → 6% in 2009, up to 30% by 2013 (1) 9M 2009

  13. Urban Services (Versia) Citizen Services Revenues by region1 Revenues by type of business1 Maintenance & other7% Handling29% Domestic 67% Vehicle Testing 7% Western Europe 26% Car parks 9% USA3% Urban Furniture 14% Logistics34% Others3% Active management of asset portfolio • Growing trend towards logistics and handling services outsourcing • Weakening of traditional mass media in favor of Internet and outdoor publicity (urban furniture) • Vehicle testing, car parks and maintenance businesses linked to long term public service concessions (1) 9M 2009

  14. 2010 Targets Services for Citizens EBITDA Net profit • To beat 2009 results Debt containment Rigorous working capital management Efficiency and cost saving (purchases and structure) • Strict management of balance sheet and cash generation Raise market share with improved profitability Increase presence in international markets • Reinforce our leadership Active management of asset portfolio Sustained Pay-out (2010 GDY over 7%) • Shareholder value commitment Consolidate 2010 as year of the cycle change

  15. 3 Services for Citizens FCC Market Valuation 3.1 Valuation multiples

  16. Market valuation Citizen Services P/ Book Value 2010 (x) P/E 2010 (x) FCC Sector Average FCC Sector Average Gross Dividend Yield 2010 (%) EV/EBITDA 2010 (x) FCC Sector Average FCC Sector Average European Infrastructure and Service Sector

  17. Services for Citizens We help create eco-efficient communities Thank you Finance Department Investor Relations

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