Ferrovial - Annual Report 2010

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Spanish version


Business Performance

Construction activity continues to be a strategic commitment for Ferrovial, not only because of its solid historical growth and profitability, but also for its ability to generate the cash flow needed to ensure the continuity of the diversification processes and the Group’s international expansion.

Ferrovial's core objectives in the Construction division are::

  • Ferrovial's core objectives in the Construction division are:
  • Using its international presence in markets selected for their stability and growth potential.
  • Collaborating closely with the Group’s investment-oriented companies that are global leaders in their activities. This collaboration has been successful for both parties for many years.
  • Strengthening our presence in businesses in which Ferrovial Agroman still has potential for growth.
  • Participating in projects linked to private funding formulas both nationally and internationally, provided they meet the risk-return requirements for investment in the current market environment.
  • Meeting customer needs in quality, environmental management, sustainability.
  • Maintenance of current levels of profitability, which are high given the competitive environment in Europe, by:
  • Carefully selecting contracts, prioritizing profitability rather than volume.
  • Closely controlling credit with private clients.
  • Capitalizing on opportunities and synergies through greater coordination between the various construction business lines and the Group’s other activities.
  • Creating value and competitive advantage through technical solutions and capabilities.
  • Improving productivity through the introduction of new management technologies.
  • Ensuring a tight, flexible and value-added structure..
  • Giving growth targets secondary importance to the generation of cash flow by targeting projects that are not investment intensive and maintaining strict oversight of the management of working capital from job to job

Achievement of the above objectives is based on day-to-day business management as well as the implementation of the strategic guidelines by each of the business areas, specifically:

  • Implementing very specific improvements to adapt to market developments in the successfully competitive Spanish construction business: public-private partnerships, increased competition and reduction of the market for traditional public work, recession in the real estate market, risks of default by private clients, etc.
  • Increased activity in the industrial construction areas, particularly via internationalization and penetration into new industrial construction activities other than water treatment.
  • Growth in the international construction business without increasing risk by:
  • Continuing the commitment to Eastern Europe through Budimex, strengthening its presence in all construction sectors and maintaining collaboration and exchange of know-how with other Group companies.
  • Boosting what are already important activities in the American markets through collaboration with Cintra and entry into new markets of interest
  • Focusing on the use of the growing presence of other divisions of the Group in the UK to boost construction activity in this market.
  • Maintaining a stable structure in other low-risk countries where Ferrovial has significant experience: Portugal, Ireland, Chile, Puerto Rico...
  • Entering new markets with growth potential with other investment-minded companies in the Group, mainly Cintra, and with a commitment to remain if market conditions permit.
  • Participating in major international projects in countries offering legal security, without the participation of the Group’s investment companies, following an in-depth analysis of the risks involved.

© Copyright 2010. Ferrovial

In agreement with:
  • Dow Jones Sustainabiliy Indexes
  • LBG Spain
  • Ethibel
  • FTSE4Good
  • The Global Compact
  • Distinction of Equality
  • Triodos Bank
  • Carbon disclosure project

This is an electronic version of the 2010 Annual Report prepared by Ferrovial S.A. for its stakeholders, which aims to be complete and accurate. The contents of this version can be checked by referring to the print version. A copy of the print version in PDF format is available to download on this web page