Main facts

5,202 Sales in million euro

15,335 Number of employees

1,400 Ongoing projects

10% Increases in concession contracts

23 Months' backlog

Main facts

Ferrovial carries out its construction activity in all areas of civil engineering and building. In civil engineering, Ferrovial designs and builds roads, railways, hydraulic works, maritime works, infrastructure, hydroelectric and industrial works. The division also has wide experience in non-residential and residential building.

2007 was a positive year overall for the construction division, with consolidated growth of 2.8% in revenues and 1.3% in EBIT in spite of the difficulties in the sector in Spain such as the drop in revenues in the residential property market, which grew by only 3.5%, significantly less than in 2006 (6.4%). This activity accounts for 5% of Ferrovial Agroman's EBIT.

In 2007, the government tender volume was maintained at a very similar level to the record figure of 47.2 billion euro reached in 2006, in particular the intensive tender activity by central government, which more than made up for the falls in tenders in the Autonomous Regional Government and local governments.

The 2005-20 Strategic Infrastructure Plan (PEIT), with planned investment of 248.892 billion euro, continues to be the basis for continued growth in the infrastructure industry and constitutes a stabilising instrument.

Regarding the Environment, the Programa Agua (Water Programme) has received 3.9 billion euro for investments in the Mediterranean area.In addition, the progress of the National Sanitation and Purification Plan ("PNSD") 2006-2015 has received a total of approximately 19 billion euro.

Industrial construction is not only focused in water treatment and environmental projects but also in energy and oil and gas projects. Ferrovial Agroman's "proforma" revenues in this area account for 150 million euro.

Ferrovial Agromán's focus on the international market is constantly increasing, as reflected in the high growth achieved in backlog in this business area throughout 2007, which represents an increase of 45% compared to 2006, and a total of 40% of total backlog in the Construction Division. In 2007, revenues rose to 1,637 million euro, with a backlog of 3,542 million euro, including activity in the United Kingdom. Currently 36.2 % of revenues from Construction are coming from outside Spain.

In 2007, Ferrovial Agromán presented bids through Cintra for international projects in the United States, United Kingdom, Portugal, Ireland, Italy and Poland. Projects in the international market have high inertia and a very slow maturity period from the time the bid is presented to completion of the project.  The result of international diversification in completed projects will start to be known at the end of 2008 and especially from 2009, where important growth is forecast in this market. The British market also offers a good outlook for growth for Ferrovial. Ferrovial participated in the team that designs the new Heathrow East Terminal. Ferrovial was short-listed to participate in the construction of this terminal. In additional, Ferrovial satisfactorily passed the Highways Agency (CAT3) assessment for the toll road plan in the United Kingdom. All of this has led to the creation of a new division dedicated specifically to dealing with the market in the United Kingdom.

Construction division in 2007

Construction division in 2007

Manuel Ruiz de Gopegui, CEO of Ferrovial Agromán, talks through the highlights of 2007 in the construction division.

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