EPoC 2012 

European Powers 
of Construction 


July 2013 


EPoC is an annual publication produced by 
Deloitte and distributed free of charge 

Director 

Javier Parada, partner in charge of the 
Infrastructure Industry, Spain 

Coordinated by 

Margarita Velasco 
Alberto Benito Benito 
Martín Alurralde Serra 

Published 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 

July 2013 


Contents 


5 Introduction 
6 Ranking of listed European construction companies 
7 Top 50 EPoC – ranking by sales 
8 Top 20 EPoC – ranking by market capitalisation 
9 Outlook for the construction industry in the EU 
12 Top 20 EPoC strategies: internationalisation and diversification 
16 EPoC 2012 financial performance 
24 Internationalisation: Business opportunities 
28 Diversification of the EPoC 2012 
31 Financing of EPoC 2012 
33 Top 20 EPoC – Company profiles 


Welcome to the 
tenth edition of 
European Powers 
of Construction 


Introduction 


EPoC 2012 examines the strategies and the performance of the major 
European listed construction companies in terms of internationalisation, 
diversification, indebtedness and other financial ratios 

We are pleased to present the tenth edition of European 
Powers of Construction, our annual publication in 
which we profile the major listed European construction 
groups and examine their market position and 
performance in terms of revenue, market capitalisation, 
internationalisation, diversification, indebtedness and 
other financial ratios. 

As has been observed since the beginning of the 
financial crisis, the economic recession suffered by 
Europe is significantly affecting the construction sector. 
According to the European Commission, 2013 will be 
the fifth consecutive year of decline in the construction 
industry in the European Union. Conversely, emerging 
economies need massive investments in infrastructure 
in order to cater for population growth and the trend 
towards the concentration of population in large 
cities. In addition, certain developed economies have 
significant investment needs because of the age of their 
infrastructure or the need to adapt it to current quality, 
efficiency and sustainability standards. As a result, 
European construction groups are actively pursuing 
business opportunities beyond their national borders 
and diversifying their portfolios. 

Whilst internationalisation and diversification continue 
to play a major role in EPoC strategies, it should not 
be forgotten that on most occasions these strategies 
certainly come at a cost. Geographical diversification 
does not always lead to growth in margins while a 
broader business portfolio normally has to be acquired 
and thus leads to higher debt. This publication discusses 
these issues. 

In this year´s EPoC, we have included a section analyzing 
EPoC financial performance and their performance in 
recent years. In 2012, both major companies’ aggregate 
sales and their market capitalisation grew, by 6.7% and 
5.4%, respectively, while they reduced their total net 
debt by 2.7%. 

We have retained the section on company profiles, 
which in the 2012 EPoC focuses on the top 20 listed 
European construction companies. For selected 
companies, we present key data regarding ownership 
structure, main activities and international presence, 
goals and strategic objectives. Each company also has 
an appendix, which shows data from the groups’ 2012 
financial statements, compared to 2011 and 2010. 

We hope that you find our EPoC 2012 analysis of the 
construction sector of interest, and that the information 
presented here helps you to understand and consider 
the challenges and opportunities of this sector. As 
usual, we welcome your ideas and suggestions about 
any of the topics covered. 

EPoC 2012 European powers of construction 


Ranking of listed European 
construction companies 

As in 2011, the Top 50 EPoC 2012 ranking by sales 
volume is headed by the French Vinci group, closely 
followed by the Spanish ACS group, with a sales gap of € 
238 million, less than 1%. Significant changes in the 2012 
Top 10 include Skanska has gaining two places and the 
Austrian company Strabag losing four. 

In the ranking by country, France has four companies 
among the top ten, while Spain remains the country with 
the largest presence in the Top 20, with five companies 
ranked between second and 20th. The UK, which takes 

Despite differences in their relative 
sizes, French, Spanish and British 
companies remain at the top of the 
ranking in terms of revenue and market 
capitalisation 

third place in the ranking of total sales by country, is 
represented by numerous medium-sized groups and 
includes a number of dedicated house builders. 

Total sales of the EPoC grew by 7% in 2012 compared to 
2011. This increase was mainly a result of the business 
performance of the Top 20 EPoC, and it is detailed by 
company in the corresponding profiles. ACS saw the 
largest increase in sales, due to the consolidation of 
HOCHTIEF for the whole year. Conversely, OHL saw its 
sales fall by 17% mainly due to the divestments made in 
its concession business in Brazil and Chile. 

EPoC’s market capitalisation grew by 5.4% in 2012, with 
UK groups recording excellent performance (growth of 
48%), mainly due to the strength of the house building 
industry, while Spanish groups posted a contraction of 
12%. 

Unlike prior years, our 2012 ranking includes all the main 
listed companies, regardless of whether any of them are 
in turn controlled by another company included in our 
ranking. Therefore, HOCHTIEF (controlled by ACS), Colas 
(controlled by Bouygues), CFE (controlled by Vinci) and 
Budimex (controlled by Ferrovial) are now included in the 
2012 ranking. 

Country 
Number of 
Companies 
Total sales 
2012 (€m) 
Variation 
2012 Vs 2011 
Total market 
capitalisation 
2012 (€m) 
Variation 
2012 Vs 2011 

 France 4 99,252 4% 34,535 9% 
Spain 6 71,894 14% 21,540 (12%) 
United Kingdom 13 41,699 9% 16,656 48% 
Germany 3 35,381 8% 7,073 3% 
Sweden 4 28,251 12% 9,149 6% 
Austria 2 15,298 (7%) 2,505 (10%) 
Netherlands 3 11,018 (6%) 1,046 1% 
Finland 2 6,974 5% 2,161 11% 
Italy 3 5,853 6% 2,225 24% 
Turkey 1 4,473 24% 6,301 (20%) 
Portugal 2 3,683 7% 455 52% 
Norway 1 2,654 17% 801 20% 
Poland 2 2,435 (3%) 596 (6%) 
Switzerland 1 2,237 9% 611 70% 
Belgium 1 1,898 6% 574 15% 
Denmark 1 1,308 5% 43 (10%) 
Greece 1 1,233 2% 340 59% 

Total 50 335,540 7.0% 106,611 5.4% 

Source: Bloomberg. Deloitte analysis 


Top 50 EPoC – ranking by sales 


Rank, Company Country 
FY 
END 
Sales (€ m) 
% 
Variation 
2012 vs 
2011 
EBIT (€ m) 
Market 
Capitalisation 
(€ m) 
Ranking 
2012 vs 
2011 

1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 
VINCI SA 
ACTIV, DE CONSTR, Y SERV, SA (ACS) 
BOUYGUES SA 
HOCHTIEF AG 
SKANSKA AB 
EIFFAGE SA 
BALFOUR BEATTY PLC 
COLAS SA 
STRABAG SE 
FOMENTO DE CONSTR, Y CONTRATAS SA (FCC) 
BILFINGER SE 
FERROVIAL SA 
KONINKLIJKE BAM GROEP NV 
ACCIONA SA 
NCC AB 
CARILLION PLC 
PEAB AB 
YIT OYJ 
ENKA INSAAT VE SANAYI AS 
OBRASCON HUARTE LAIN SA (OHL) 
SACYR VALLEHERMOSO SA 
INTERSERVE PLC 
KIER GROUP PLC 
BARRATT DEVELOPMENT PLC 
VEIDEKKE ASA 
MORGAN SINDALL PLC 
TAYLOR WIMPEY PLC 
ASTALDI SPA 
HEIJMANS NV 
PORR GROUP 
IMPREGILO SPA 
LEMMINKAINEN OYJ 
MOTA ENGIL SGPS SA 
IMPLENIA AG 
PERSIMMON PLC 
CFE SA 
GALLIFORD TRY PLC 
KELLER GROUP PLC 
INTERIOR SERVICE GROUP PLC 
BUDIMEX SA 
TEIXEIRA DUARTE ENGENHARIA E CONST, SA 
JM AB 
BAUER AKTIENGESELLSCHAFT 
MT HOJGAARD 
BALLAST NEDAM NV 
ELLAKTOR SA 
BELLWAY PLC 
COSTAIN GROUP PLC 
TREVI GROUP 
POLIMEX MOSTOSTAL SA 
France 
Spain 
France 
Germany 
Sweden 
France 
United Kingdom 
France 
Austria 
Spain 
Germany 
Spain 
Netherlands 
Spain 
Sweden 
United Kingdom 
Sweden 
Finland 
Turkey 
Spain 
Spain 
United Kingdom 
United Kingdom 
United Kingdom 
Norway 
United Kingdom 
United Kingdom 
Italy 
Netherlands 
Austria 
Italy 
Finland 
Portugal 
Switzerland 
United Kingdom 
Belgium 
United Kingdom 
United Kingdom 
United Kingdom 
Poland 
Portugal 
Sweden 
Germany 
Denmark 
Netherlands 
Greece 
United Kingdom 
United Kingdom 
Italy 
Poland 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Jun 12 
Jun 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Jun 12 
Dec 12 
Jun 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 12 
Dec 11 
Dec 12 
Jul 12 
Dec 12 
Dec 12 
Dec 12 
38,634 
38,396 
33,547 
25,528 
14,861 
14,035 
13,439 
13,036 
12,983 
11,152 
8,509 
7,686 
7,404 
7,016 
6,575 
5,430 
5,381 
4,706 
4,473 
4,030 
3,614 
2,922 
2,749 
2,749 
2,654 
2,525 
2,490 
2,457 
2,318 
2,315 
2,281 
2,268 
2,243 
2,237 
2,123 
1,898 
1,779 
1,625 
1,516 
1,452 
1,440 
1,434 
1,344 
1,308 
1,296 
1,233 
1,199 
1,153 
1,115 
982 
5% 3,651 20,735 = 
35% 1,591 5,991 . 1 
3% 1,286 7,053 . 1 
10% 595 3,383 = 
13% 462 5,227 . 2 
2% 1,199 2,926 = 
6% 91 2,309 . 1 
5% 406 3,820 N/A 
(9%) 207 2,328 . 4 
(5%) (403) 1,193 . 1 
4% 415 3,360 . 1 
3% 708 8,215 = 
(7%) (293) 779 . 2 
6% 646 3,219 . 1 
13% 291 1,720 = 
(7%) 287 1,671 . 2 
12% 121 1,071 = 
7% 259 1,880 = 
24% 485 6,301 . 1 
(17%) 660 2,189 . 4 
-8% (46) 733 . 2 
37% 99 604 . 8 
11% 80 647 . 1 
16% 226 2,485 = 
17% 67 801 . 1 
(2%) 43 273 . 5 
20% 281 2,603 . 5 
4% 212 498 . 3 
-2% (89) 169 . 5 
5% 54 177 . 2 
8% (26) 1,443 = 
0% 50 281 . 5 
3% 171 321 . 4 
9% 87 611 . 1 
20% 268 2,969 . 1 
6% 81 574 N/A 
19% 84 746 . 2 
22% 60 547 = 
9% 2 58 . 3 
8% 44 438 N/A 
14% 143 134 . 1 
8% 158 1,131 . 3 
10% 71 331 . 1 
5% (68) 43 . 3 
(6%) (31) 98 . 8 
2% 115 340 . 3 
17% 137 1,541 = 
1% 23 204 . 3 
5% 47 284 . 3 
(16%) (283) 159 . 6 
EPoC 2012 European powers of construction 7 


Top 20 EPoC – ranking by 
market capitalisation 

In spite of the current economic and financial 
turbulence, EPoC generally saw their market 
capitalisation increase in 2012. Nevertheless, most of 
the EPoC have not yet regained their pre-recession 
capitalisation ratios. 

The total market capitalisation of the Top 20 EPoC 
increased slightly, by 6%, in 2012, compared to 14% 
growth in the Euro Stoxx 50 Index. 

At 31 December 2012, Vinci continued to lead 
European construction companies by market value, 
with an increase of 9% in 2012. Overall, the market 
capitalisation of French EPoC increased by 9%, 
compared to a 15% upsurge in the CAC 40 Index. 

The total market capitalisation of the Spanish 
construction groups included in the Top 20 EPoC 
dropped by 3%, while the IBEX 35 index fell by 5%. 
Noteworthy was the remarkable 20% growth in market 
value achieved by Ferrovial, which took this group to 

second place in the ranking, and the 53% drop in FCC’s 
market capitalisation that took it out of the Top 20 by 
market capitalisation. 

It is worth noting that British groups achieved the 
highest increases in market capitalisation, with an overall 
increase of 48%, compared to a 6% rise in the FTSE 100 
index, mainly due to the strength of the house building 
industry, in which groups such as Taylor Wimpey Plc, 
Persimmon Plc and Barratt Development Plc operate. 

Also in 2012, the Turkish company ENKA fell two places 
to fourth place in our ranking, after losing 20% of its 
2011 market capitalisation. In contrast, XU 100, a major 
stock market index based in Turkey, gained 47.5% in the 
year. 

Only six of our Top 20 EPoC saw their market values fall 
in 2012. Not only FCC, but also Sacyr fell out of our Top 
20 by market capitalisation, to be replaced by Colas and 
Barratt Development Plc. 

Rank. Company Country 
Market 
Capitalisation 
(€ m) 2012 
Variation 
2012 vs 2011 
Ranking 
change on 
2011 

1 VINCI SA FRANCE 20,735 9% = 
2 FERROVIAL SA SPAIN 8,215 20% . 3 
3 BOUYGUES SA FRANCE 7,053 (8%) = 
4 ENKA INSAAT VE SANAYI AS TURKEY 6,301 (20%) . 2 
5 ACTIV. DE CONSTR. Y SERV. SA (ACS) SPAIN 5,991 (17%) . 1 
6 SKANSKA AB SWEDEN 5,227 2% = 
7 COLAS SA FRANCE 3,820 14% N/A 
8 HOCHTIEF AG GERMANY 3,383 (2%) = 
9 BILFINGER SE GERMANY 3,360 11% = 
10 ACCIONA SA SPAIN 3,219 (24%) . 3 
11 PERSIMMON PLC UNITED KINGDOM 2,969 75% . 3 
12 EIFFAGE SA FRANCE 2,926 80% . 4 
13 TAYLOR WIMPEY PLC UNITED KINGDOM 2,603 81% . 7 
14 BARRATT DEVELOPMENT PLC UNITED KINGDOM 2,485 131% . 7 
15 STRABAG SE AUSTRIA 2,328 (7%) . 4 
16 BALFOUR BEATTY PLC UNITED KINGDOM 2,309 6% . 4 
17 OBRASCON HUARTE LAIN SA (OHL) SPAIN 2,189 13% . 4 
18 YIT OYJ FINLAND 1,880 19% . 1 
19 NCC AB SWEDEN 1,720 17% = 
20 CARILLION PLC UNITED KINGDOM 1,671 8% . 2 

Source: Bloomberg 


Outlook for the construction 
industry in the EU 

A characteristic of construction activity is that it is 
particularly cyclical, as it is influenced by business and 
consumer confidence, interest rates and government 
programmes. Business and consumer confidence started 
to decline in 2008, and construction investment has not 
yet recovered. In fact, hopes of a steady recovery for 
the European construction industry have been dashed. 
In several countries the euro crisis and government 
austerity measures are continuing to hold construction 
activity in check. 

In the years from 2009 to 2012, construction investment 
in the European Union declined by 9.9%, 3.2%, 
0.2% and 2.8%, respectively. In addition, European 
Commission forecasts do not anticipate positive growth 
rates until 2014 (1.4%). Despite this, construction 
investment in certain countries such as Estonia, Romania 
and the United Kingdom (mainly house building), is 
performing relatively well. On the other hand, Spain, 
Greece, Cyprus, Portugal and Slovenia reduced their 
investment in construction by more than 10% in 2012. 

Production index in the construction sector 


130 
125 
120 
115 
110 
105 
100 
95 
90 


Construction investment in the EU 
continued to decline in 2012, with an 
additional decrease expected for 2013 

The reduction in construction investment in countries 
such as Portugal, Greece, Spain, Cyprus, Slovenia and 
Ireland was especially severe as a consequence of the 
deficit-cutting policies implemented by their respective 
governments. Investment in these countries fell every 
year from 2009 to 2012. Other countries such as 
Estonia, Denmark or Lithuania were particularly affected 
at the onset of the crisis but in recent years their 
construction investment levels have recovered. 


02-200405-200408-200411-200402-200505-200508-200511-200502-200605-200608-200611-200602-200705-200708-200711-200702-200805-200808-200811-200802-200905-200908-200911-200902-201005-201008-201011-201002-201105-201108-201111-201102-201205-201208-201211-201202-2013 


2010 = 100 


Euro area, seasonaly adjusted series 
EU27, seasonaly adjusted series 


Source: Eurostat 

EPoC 2012 European powers of construction 


An analysis of forecast EU construction investment for • In the Eurozone, only Germany, Austria, Slovenia and 
2013 - 2014 highlights the following: Slovakia are expected to obtain positive growth rates 
in 2013. The scenario for 2014 looks quite different 
• While construction investment in the EU is expected given that only four countries are expected to reduce 
to fall by 2.2% in 2013, projections for 2014 showed investment in construction: Spain (-1.8%), Italy 
an increase of 1.4%. Among Eurozone countries, the (-0.5%), Cyprus (-10.8%) and Slovenia (-0.3%). 
trend for the coming years is expected to be in line 
with the figures projected for the EU as a whole. 
Investment in construction, volume (percentage change on preceding year, 1994-2014) 

5-year averages Winter 2013 forecast 
1994-98 1999-03 2004-08 2009 2010 2011 2012 2013 2014 
Belgium 1.9 (1.4) 4.5 (7.6) (0.6) 0.1 (1.1) (1.3) 2.3 
Germany 0.0 (2.9) (0.7) (3.2) 3.2 5.8 (1.1) 1.2 2.6 
Estonia -8.3 10.2 (30.5) (9.9) (6.2) 33.8 (3.1) 2.6 
Ireland 14.5 6.8 3.6 (31.6) (30.1) (15.8) (6.1) (7.9) 0.0 
Greece 3.0 5.8 (0.9) (12.8) (19.2) (21.0) (19.5) (2.7) 5.5 
Spain 3.2 7.1 3.0 (16.6) (9.8) (9.0) (11.6) (9.4) (1.8) 
France (0.3) 3.2 3.3 (7.8) (3.4) 1.9 1.1 (0.3) 0.6 
Italy (0.4) 4.1 0.4 (8.8) (4.8) (2.6) (6.6) (3.6) (0.5) 
Cyprus -3.8 8.7 (14.1) (4.7) (7.7) (21.0) (24.6) (10.8) 
Luxembourg 5.1 9.7 2.1 (4.5) (2.0) 1.0 0.0 (1.9) 3.0 
Malta ---------
Netherlands 2.6 0.6 2.9 (9.8) (10.3) 4.0 (8.1) (5.0) 0.8 
Austria 1.3 (0.1) 0.4 (7.1) (2.7) 4.4 1.4 1.0 1.3 
Portugal 6.6 (0.2) (2.7) (6.6) (4.2) (11.4) (18.5) (10.8) 1.3 
Slovenia 7.6 3.5 6.6 (20.8) (18.7) (20.1) (12.6) 8.0 (0.3) 
Slovakia -(4.8) 11.4 (10.3) (7.7) 2.7 (2.5) 6.0 4.8 

Finland 6.4 2.7 4.1 (15.0) 8.1 4.0 (2.5) (1.4) 1.2 
Euro area -1.7 1.6 (9.8) (4.3) (0.5) (3.9) (2.1) 0.9 
Bulgaria ---------
Czech Republic (8.0) (0.4) 2.9 (4.1) (1.5) (3.5) (3.6) (1.7) 1.3 
Denmark 6.5 0.2 2.2 (18.4) (5.8) 6.8 (3.0) 0.2 2.5 
Latvia -0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Lithuania -2.1 11.9 (37.1) (7.4) 13.9 (1.1) 4.2 8.0 
Hungary -3.1 1.6 (5.9) (13.5) (12.4) (6.4) (0.5) (0.2) 
Poland -(1.3) 8.9 4.9 2.2 9.5 (1.2) (5.6) (3.7) 
Romania 4.1 5.1 19.9 (28.7) 11.3 5.0 7.7 4.4 5.1 
Sweden (2.1) 3.2 4.8 (11.7) 4.4 9.0 1.1 (1.1) 4.0 

United Kingdom 3.8 3.0 5.2 (10.8) 0.9 (3.5) 2.2 (3.1) 4.6 
EU -1.8 2.6 (9.9) (3.2) (0.2) (2.8) (2.2) 1.4 
Source: European Commission. 


• Outside the Eurozone, Lithuania and Romania are 
expected to grow by approximately 4% in 2013, 
while the available forecasts for countries such as 
Poland, Czech Republic and the United Kingdom are 
less optimistic. In 2014, only Hungary and Poland are 
expected to reduce their investment in construction. 
As in 2011, in 2012 Germany and France continued 
to be the largest EU construction markets, with similar 
sizes. The next largest markets, Britain and Italy, account 

Construction Investment in 2012 (Billions of euros) 


300

250 

200 

150 

100 

50 

0 

2012 

2011 

Source: Ameco, May 2013 

for approximately 64% and 59%, respectively, of the 
German and French markets. The Spanish construction 
market, which is ranked in fifth position, reduced 
investment in construction activities by 17% to € 124 
billion in 2012. 

Overall, construction volume in 2013 is only expected to 
reach € 1.27 trillion, which would mean that European 
construction will have fallen below levels last seen in the 
mid-1990s. 

260 259 
167 
154 
124 
55 
45 
39 36 36 
25 21 20 17 16 13 9 8 7 5 4 3 3 3 2 2 0 
Germany 
FranceUnited KingdomItalySpainNetherlands 
PolandBelgiumAustria 
Sweden 
FinlandRomaniaDenmarkCzech Republic 
Portugal 
GreeceHungary 
IrelandSlovakia 
LuxembourgBulgariaLithuaniaSloveniaLatviaEstonia

 CyprusMalta

EPoC 2012 European powers of construction 11 


Top 20 EPoC strategies: 
internationalisation and 


diversification 


As a consequence of the fact that the Top 20 listed 
European construction companies have attained 
different levels of internationalisation and diversification, 
in previous editions of European Powers of Construction 
we divided them into four main categories. The 
following paragraphs discuss the developments in these 
four categories: 

Domestic construction groups 

This category is formed by companies that are mainly 
focused on construction activities carried on in their 
domestic markets. Vinci and Bouygues, the two French 
giants in the top three places in the ranking by sales 
volume, have a strong presence in France. In 2012, 
these groups obtained 63% and 66%, respectively, of 
total sales in their home market. Also, over the last few 
years Vinci and Bouygues have focused their portfolios 
on construction activities, which accounted for more 
than 83% and 76%, respectively, of their total sales 
in 2012. Consequently, they are considered to be 
“domestic construction groups”. 

On a smaller scale, Peab, despite having increased its 
international activities by almost seven percentage 
points since 2010, is still focused on the domestic 
construction business, and obtains 80% of its revenues 
in Sweden. 

Seven of our Top 20 EPoC 2012 
companies obtain at least 40% of 
their revenues from non-construction 
activities while eleven of them generate 
more than 50% abroad 

International construction groups 

This category is formed by construction groups that 
obtain more than 40% of their total revenue beyond 
their domestic markets. HOCHTIEF, which became part 
of the ACS Group in June 2011, is still considered to 
have the largest international presence among the Top 
20 listed European construction groups, since it obtains 
93% of its total revenues abroad. Its presence in Asia 
and Australia, through its subsidiary the Leighton Group, 
remains especially significant. 

ACS, which was deemed an “international 
conglomerate” in 2011, has been moved to the 
“international construction groups” category as a 
consequence of fully consolidating HOCHTIEF for the 
whole year. This acquisition increased the importance 
of construction activities as well as the group’s 
international presence - 84% of its total sales were 
made abroad in 2012. ACS has become the most 
widely diversified international construction group with 
non-construction sales representing over 20% of total 
revenues. 

Skanska still has a strong international presence, since it 
obtains more than 75% of its total revenues worldwide. 
However, mention must be made of the reduction in its 
international activities since 2010. The US continues to 
be one of the most important markets for the Swedish 
group, since it obtained approximately 31% of its total 
revenue there in 2012. 

International construction groups located in countries 
with smaller consumer markets have adopted strategies 
based on internationalisation in order to develop new 
business opportunities. The Austrian company Strabag, 
the Swedish group NCC, the Finnish company YIT and 
the Dutch BAM Groep are examples of the importance 
of internationalisation when the domestic market is not 
large enough to sustain high growth rates. 

Finally, Colas is included in the “international 
construction group” category as it obtained 44% of 
total sales abroad and construction activities represent 
82% of total revenues. However, it is also similar to the 
other French groups, Vinci and Bouygues, which are 
classified as “domestic construction groups” because 
their international sales represent less than 40% of their 
total sales. 


ENKA 
"DomestConglomic" 
erates 
International BILFINGERCARILLION 
ACCIOCongloNA 
merates 
EIFFAGE FCFERROC VIAL 
BALFOUOHLR 
"
CGDomestic" 
onstructionBOUYGUES 
COLAS ACS 
roups 
PEAB 
VINCI 
InternationGroups 
al Construction 
NCC 
BAM 
SKANSKA 

Domestic conglomerates 

“Domestic conglomerates” are formed by groups 
with different segments of activities focused on local 
markets. 

Carillion, which maintained the same level of 
internationalisation as in 2011, slightly increased 
the diversification of its portfolio through various 
acquisitions such as a 49% interest in the Bouchier 
Group, based in Alberta (Canada), which provides a 
range of support services, including road maintenance, 
infrastructure services and facilities management. 
Consequently, the Group consolidated its position as 
one of the most highly diversified EPoC companies. 

In 2012, ENKA’s level of internationalisation was still 
below 30%, but the diversification of its portfolio 

Non-construction revenues / total revenues 
% 


100% 
90% 
80% 


70% 
60% 
50% 
40% 


30% 
20% 
10% 
0% 

0% 

10% 
20% 
30% 
40% 


continued to be around 80% due to the strong 
performance of its energy business. Turkey is still the 
main source of ENKA’s revenues, accounting as it does 
for around 80% of total sales. In the last few years, 
ENKA has strengthened its position as a domestic 
conglomerate by reducing its level of internationalisation 
while increasing the diversification of its portfolio. 

Eiffage, which is characterized by a growth strategy 
focused on its home market, continued to develop its 
energy and concession businesses. Its position within 
the “domestic conglomerates” category remained in 
line with the previous year. Non-construction revenues 
represented approximately 45% of total sales in 2012, 
while domestic operations accounted for 85% of the 
group’s revenue. Consequently, Eiffage was classified as 
a domestic conglomerate. 

HOCHTIEF

YIT 

STRABAG 

50% 
60% 
70% 
80% 
90% 
100% 


International revenues / total revenues % 


Source: Deloitte analysis 

EPoC 2012 European powers of construction 13 


International conglomerates 

The “International conglomerates category” 
encompasses groups with highly diversified portfolios 
and a strong international presence. 

The Acciona Group, which was classified as a 
“domestic conglomerate” in 2011, moved into 
this category in 2012 as a result of the continuing 
international expansion of its energy business. The 
growing importance of energy activities within the 
company, both inside and outside Spain, is allowing it 
to consolidate itself as an international conglomerate. 
Acciona has increased the importance of its energy 
business by approximately € 610 million in the last two 
years. 

Ferrovial, the Spanish group occupying 2nd position in 
our ranking by market capitalisation, has consolidated 
its position as an international conglomerate due 
to the strong performance of subsidiaries such as 
Amey, Budimex and Webber. Non-construction sales 
represented 44% of total revenue in 2012, while 
international business accounted for 62% of total sales. 

Bilfinger, which has a presence in all five continents, 
further increased its diversification: 61% of its 2012 
sales were made in non-construction activities. Since 
2010, Bilfinger has increased its diversification levels 
by almost six percentage points and its international 
presence by around three percentage points. 

Balfour Beatty also continues to be included in this 
category, with 51% of its sales abroad (mainly in the US) 
and significant non-construction activities. 

Likewise, the higher level of internationalisation 
identified at FCC was driven by significant activity 
outside of Spain as well as a reduction in its business in 
the domestic market. Since 2010, FCC has increased the 
importance of its international business by around ten 
percentage points. 

Lastly, OHL remains a worldwide company, obtaining 
as it does 67% of total sales abroad, with a strong 
presence in markets such as the US and Mexico. 
However, the divestments of its Brazilian and Chilean 
concessions and of its environment business in 
2012 reduced its levels of internationalisation and 
diversification. 

Evolution of internationalisation and 
diversification 2010-12 

An analysis of the changes in the degree of 
internationalisation and diversification over the last 
three years shows that most of our Top 20 EPoC have 
remained in the same category throughout the period 
and have seen changes in their internationalisation and 
diversification levels of around +/- 5 percentage points. 
Only six groups have seen significant changes in their 
levels of internationalisation and/or diversification: 

• The Spanish Acciona and FCC groups have maintained 
their diversification levels while strongly committing 
to internationalisation, partly because of the severe 
contraction in their domestic market. 
• The acquisition of HOCHTIEF transformed ACS 
from a domestic conglomerate to an international 
construction group. In addition, the divestment 
process embarked upon by the Group reduced its 
diversification percentage. 
• Ferrovial has seen its percentage of international sales 
fall and has become less diversified, mainly as a result 
of its divestment policy and to the deconsolidation 
of HAH (formerly BAA) and 407 ETR. Excluding these 
deconsolitations or, in other words, consistently 
applying proportionate consolidation throughout 
the period, Ferrovial's internationalisation and 
diversitication levels remain fairly constant. In any 
case, Ferrovial is still classified in the "International 
Conglomerates" category. 
• Bilfinger has increased its diversification by six 
percentage points, mainly due to the good 
performance of its industrial services operations. 
Internationalisation levels remain generally consistent 
during the period with over 60% of sales obtained 
abroad. 
• Peab has managed to increase its internationalisation 
level by six percentage points, although the most 
noteworthy increase is explained by sales made in 
Norway. International sales only represent 20% of 
total revenues and therefore the Group remains 
classified as a “domestic construction group”. 

 COMPANY 
2012-2010 
Internationalisation 
% variation 
Diversification 
% variation 

VINCI SA 0% (1%)

 ACTIV. DE CONSTR. Y SERV. SA (ACS) 53% (41%) 
BOUYGUES SA 2% (3%)

 HOCHTIEF AG 1% (4%) 
SKANSKA AB (5%) (4%)

 STRABAG SE (3%) 0% 
EIFFAGE SA 0% 0%

 BALFOUR BEATTY PLC 4% 0% 
COLAS SA (2%) (1%)

 FOMENTO DE CONSTR. Y CONTRATAS SA (FCC) 10% 0% 
BILFINGER SE 3% 6%

 FERROVIAL SA (7%) (19%) 
KONINKLIJKE BAM GROEP NV 1% 1%

 ACCIONA SA 11% 5% 
NCC AB (1%) 0%

 CARILLION PLC 1% 13% 
PEAB AB 6% (1%)

 YIT OYJ (3%) 0% 
ENKA INSAAT VE SANAYI AS (5%) 2%

 OBRASCON HUARTE LAIN SA (OHL) (3%) (5%) 
Average Top 20 EPoC 6% (5%) 
8% 
6% 



BILFINGER ACCIONA 
4% 
2% 


FCC 
60% 


YIT 
-2% 
-1% 1%
VINCI 
0% 
ENKA 

EIFFAGE

STRABAG 


BAM 
BALFOUR 
NCC 

-7% -5% -3% 


3% 5% 


7% 9% 11% 13% 
COLAS 

PEAB 

Internationalisation level variation 2012 vs 2010 


SKANSKA 


BOUYGUES 
-4% 
HOCHTIEF 
OHL 
-6% 


-8% 


-10% 

FERROVIAL 


ACS 

-40% 

Diversification level variation 2012 vs 2010 

Source: Deloitte analysis 

EPoC 2012 European powers of construction 15


EPoC 2012 financial 
performance 

The most noteworthy aspects of the financial 
performance of our Top 20 EPoC are as follows: 

EBIT margin 

The analysis of EPoC 2012 profitability levels needs 
to distinguish construction from other activities. The 
following conclusions can be drawn, based on the 
margins obtained by our Top 20 EPoC: 

• Total average EBIT margins dropped to 4.6% in 2012, 
a decline of 130 basis points in comparison to 2011. 
This is due to a significant decrease in the margins of 
both construction and non-construction activities. 
Average EBIT margins decreased by 
190 basis points since 2010 while five 
companies increased its margins during 
2012 

• Construction EBIT margins fell to 2.6% in 2012, 80 
basis points lower than the previous year, whereas 
other activites margins fell 220 basis points to 11.2% 
in 2012. 
• It is noteworthy that three of our Top 20 EPoC (Balfour 
Beatty, BAM and FCC) had negative construction EBIT 
margins in 2012. None of our EPoC had negative 
construction margins in previous years. In some cases, 
this may reflect not only the effects of the recession 
and high levels of competitiveness in the European 
markets, but also potential lower margins resulting 
from the internationalisation process. In other cases, 
the negative construction margin is caused by 
property write-offs. 

• Ferrovial shows the highest construction margins, with 
6.9%, and FCC the lowest, at -6.7%, mainly due to 
the operating losses of its Austrian subsidiary Alpine. 
Regarding total margins, OHL continues to be the 
most profitable company due to the relative weight of 
its concession business, with BAM and FCC being the 
only companies with negative EBIT margins. 
EBIT / Sales 
Construction activities Other activities Total 
Company 2012 2011 2010 2012 2011 2010 2012 2011 2010 

 FERROVIAL SA 6.9% 5.1% 4.2% 12.2% 12.9% 17.3% 9.2% 8.4% 12.4% 
ENKA INSAAT VE SANAYI AS 6.6% 22.7% 15.3% 12.1% 13.0% 13.9% 10.8% 14.8% 14.2% 
CARILLION PLC 5.8% 4.5% 3.3% 5.0% 4.1% 4.4% 5.3% 4.3% 3.8% 
YIT OYJ 5.6% 5.5% 5.8% 0.0% N/A N/A 5.5% 5.5% 5.8% 
NCC AB 4.7% 3.8% 4.6% N/A N/A N/A 4.4% 3.8% 4.6% 
VINCI SA 4.2% 4.5% 4.5% 40.7% 40.1% 41.4% 9.5% 9.7% 10.3% 
BOUYGUES SA 3.7% 3.7% 3.8% 4.3% 9.5% 10.7% 3.8% 5.6% 5.6% 
BILFINGER SE 3.6% 3.3% 3.1% 5.7% 5.3% 5.2% 4.9% 4.4% 4.3% 
COLAS SA 3.1% 3.8% 2.7% 3.1% 3.8% 2.7% 3.1% 3.8% 2.7% 
ACCIONA SA 2.8% 4.1% 4.6% 15.2% 15.4% 12.7% 9.2% 9.5% 8.4% 
SKANSKA AB 2.8% 3.2% 3.9% 11.2% 46.4% 11.9% 3.1% 7.1% 4.5% 
EIFFAGE SA 2.7% 2.2% 3.0% 15.7% 15.4% 13.5% 8.5% 8.0% 7.7%

 HOCHTIEF AG 2.7% 2.5% 3.8% N/A N/A N/A 2.3% 2.7% 3.5% 
AVERAGE EPoC 2.6% 3.4% 3.7% 11.2% 13.4% 13.3% 4.6% 5.9% 6.5% 
ACTIV. DE CONSTR. Y SERV. SA (ACS) 2.3% 2.3% 5.3% 10.4% 10.7% 8.0% 4.1% 4.8% 7.0% 
STRABAG SE 1.6% 2.6% 2.3% N/A (2.2%) N/A 1.6% 2.3% 2.3% 
OBRASCON HUARTE LAIN SA (OHL) 1.1% 6.9% 4.8% 48.8% 38.6% 30.1% 16.4% 20.0% 14.3% 
PEAB AB 1.1% 2.7% 3.5% 10.1% 8.4% 7.2% 2.3% 3.5% 3.9% 
BALFOUR BEATTY PLC (0.5%) 2.0% 2.8% 2.8% 2.6% 0.5% 0.7% 2.2% 2.0% 
KONINKLIJKE BAM GROEP NV (2.2%) 2.0% 1.8% (32.2%) 1.0% 0.0% (4.0%) 1.9% (0.4%) 
FOMENTO DE CONSTR. Y CONTR. SA (FCC) (6.7%) 3.2% 3.6% 0.1% 3.7% 9.8% (3.6%) 3.4% 6.4% 

Source: Deloitte analysis 


Net income 

The analysis of the net income obtained by the Top 20 
EPoC in 2012 discloses the following conclusions: 

• Total net income obtained by the Top 20 EPoC 
decreased by 46% to € 5,002 million in 2012 while 
average net income amounted to € 250 million. 
This decrease is mainly due to exceptional items 
at certain companies; Top 20 EPoC underlying net 
income remained relatively stable, with just a one digit 
decrease over 2011. 
• In line with the trend noted in the analysis of EBIT 
margins, total net income represented 1.8% of total 
sales, a fall of 190 and 260 basis points compared to 
2011 and 2010, respectively. 
• In 2012, Vinci continued to be the company with the 
highest net income among our EPoC. Since 2010, the 
Group´s net income has amounted to around € 2,000 
million each year. 
• On the other hand, Spanish groups such as ACS 
and FCC recorded significant losses in 2012. The 
significant non recurring losses from its shareholding 
in Iberdrola impacted ACS’s net income. The net 
loss obtained by FCC was mainly due to the losses 
at its Austrian construction subsidiary Alpine, the 
write-off of goodwill regarding certain activities, and 
restructuring costs. 
• In 2012, twelve of the EPoC saw their net income 
obtained fall in comparison to 2011. The most 
significant of these reductions were among some of 
the most diversified and internationalized groups, 
such as Ferrovial, Skanska, FCC and ACS. 
• On the other hand, eight EPoC increased their net 
income in 2012. The most significant growth was 
achieved by OHL, which increased its net income by 
215%, mainly due to the extraordinary gain obtained 
on the sale of its Brazilian and Chilean concessions. 
Net Income 


VINCI 

OHL 
BOUYGUES 
FERROVIAL

 ENKA

 HOCHTIEF

 SKANSKA

COLAS

 BILFINGER 

 EIFFAGE

 NCC

 CARILLION

 YIT

 ACCIONA

 STRABAG

 PEAB

 BALFOUR

 BAM

 FCC

 ACS


Average 2012 = € 250 million 
Average 2011 = € 461 million 

-1500 -1000 -500 0 500 1000 1500 2000 2500

2012 

2011 

Total and average net income were reduced in 2012 by 46% 
compared to the previous year, mainly due to exceptional items 

EPoC 2012 European powers of construction 17 


Average debt to equity ratios remain 
unchanged from 2011 

Total net debt / (Total net debt + Equity) 


100 

80 

60 

Net debt / net debt + equity 

The analysis of the net debt / (net debt + equity) ratio 
gave rise to the following highlights: 

• Average debt levels remain at 47%, thus unchanged 
from previous years. 
• Eiffage continues to be the group with the highest 
debt ratio, followed by the Spanish companies FCC, 
OHL and Acciona. 
• ENKA, Strabag, Carillion, Balfour Beatty and Skanska 
showed net cash positions in 2010, but only ENKA, of 
the Top 20 EPoC, still had a net cash position in 2012. 
Average 2010 = 52 % 

Average 2012 and 2011 = 47 % 

40 

20 

0 

-20 

-40 

2012 

2011 

2010 

Source: Deloitte analysis 


Eiffage

FCCOHLAccionaBAMVinciFerrovial

ACSPeabYITNCCBouyguesSkanskaHOCHTIEFBalfourCarillionColasStrabagBilfingerENKA 


Net debt / market capitalisation 

The analysis of these ratios allows for the following 

The average net debt / market 

conclusions to be drawn: 

capitalisation ratio of EPoC 2012 

• The average net debt/market capitalisation ratio slid 
was reduced by 0.1, following a 3%

from 0.8 to 0.7 as a result of the combination of a 
3% decrease in net debt and a 2% increase in market 


reduction in net debt and a 2% increase 

capitalisation. 

in market capitalisation 

• FCC has the highest net debt / market capitalisation 
ratio mainly due to the sharp fall (53%) in its market 
capitalisation in 2012. 
Net Debt / Market Capitalisation 


-1 
0 
1 
2 
3 
4 
5 
6 
7 
8 
9Average 2012 and 2010 = 0.7 
Average 2011 = 0.8 
FCCEiffage 
AccionaOHLBAM 
ACS 
Peab 
Ferrovial 
VinciBouyguesNCCYITHOCHTIEFBalfourSkanskaCarillion 
StrabagColasBilfinger 
ENKA 

2012 

2011 

2010 

Source: Bloomberg, Deloitte analysis 

EPoC 2012 European powers of construction 19 


• The companies whose net debt / market capitalisation 
ratio fell most in 2012 were Eiffage and OHL. Eiffage’s 
market capitalisation grew by 80%, but it continues to 
occupy second place in the ranking. OHL reduced its 
net debt by 18% as a result of the divestments made 
in Chile and Brazil. 
Market capitalisation / book value 

• The average market capitalisation / book value ratio 
remained at 1.3 in 2012, the same level as in 2011. 
• Skanska and ACS had ratios above 2 at December 
2012, whereas the ratios achieved by the BAM Groep, 
Bouygues and Acciona were below 0.9 at the same 
date. 
Intangibles and market value vs book value 

Before the current financial crisis, the EPoC were 
involved in significant M&A activities as part of the 
growth strategies adopted by them. In some cases, the 
purchase prices paid exceeded the value of the assets 

Market capitalisation / Book value 


3.0 

2.5 

2.0 

acquired as the investors expected to recover their 
investments through higher cash flows in subsequent 
years. 

Not all those cash flows have materialized, and this 
means that analysts are focusing on the value of the 
intangible assets and goodwill that arose as a result 
of these M&A transactions. Against this backdrop, the 
following paragraphs analyze the relationship between 
market capitalisation, book value and the intangible 
assets of our EPoC 2012. 

The Top 20 EPoC have an average market capitalisation 
/ book value ratio of 1.33, and an average intangible 
asset / market capitalisation ratio of 0.4. 

In an analysis of the relationship between intangible 
assets (excluding concessions), book value and market 
capitalisation of the major listed European construction 
groups, four categories can be identified, the detail 
being as follows: 

Average 2010 = 1.7 


Average 2012 and 2011 = 1.3 

1.0 

0.5 

0.0 

SkanskaACSYITBilfingerNCCENKAStrabagVinciColas

Ferrovial
Balfour
Carillion


HOCHTIEFEiffagePEABOHLFCCBAMBouyguesAcciona 

2012 

2011 

2010 

Source: Bloomberg, Deloitte analysis 

20 


• Groups such as ACS, Vinci, HOCHTIEF, Ferrovial, 
Bilfinger, YIT, OHL, NCC, ENKA, Peab, Balfour Beatty, 
Colas and Skanska, where market capitalisation levels 
are higher than both intangible asset values and book 
values. ACS and Skanska, which are among the most 
international of our groups, had market capitalisations 
of 2.3 times their book values at December 31, 
2012. Skanska also has a low intangibles / market 
capitalisation ratio, while ACS’s ratio is close to 0.7 
as a consequence of the various investments made in 
previous years such as the acquisition of HOCHTIEF. 
• BAM, Strabag and Acciona represent the segment in 
which market capitalisation is lower than book value, 
and at the same time the amount of intangible assets 
is below market value. These companies trade at a 
discount to book value. BAM reduced its intangible 
assets and book value by 26% and 20%, respectively, 
in 2012, while its market capitalisation rose by 2%. 
As a consequence, at December 31, 2012 the Dutch 
company was on the way to joining the category 
described in the previous bullet point. 
2,5 

2,0 

1,5 

1,0 

0,5 

-

Market capitalisation / Book value 

• A third segment is that formed by Carillion and 
Eiffage. For this segment, the main issue is the 
considerable importance of the intangible assets in 
their balance sheets, although the markets are not 
currently discounting this risk. The French group, 
which was located in the bottom right-hand corner of 
the graph in 2011, increased its market capitalisation 
by 80% during 2012 while both intangible assets and 
the book value remained in line with the previous 
year. On the other hand, Carillion’s figures remained 
unchanged year on year. 
• The last group contains Bouygues and FCC and 
represents EPoC with both book and intangible 
asset values above their market value. The Spanish 
company, which was placed in the top right-hand 
corner of the graph in 2011, reduced its market 
capitalisation and book value by 53% and 47%, 
respectively, in 2012. Bouygues moved to the right-
hand side of the graph this year due to both the 
growth in its intangible assets and the reduction in its 
market capitalisation. 
VINCI 
ENKA 
BOUYGUES 
ACS 
FERROVIAL 
SKANSKA 
ACCIONA 
HOCHTIEF 
BILFINGER 
FCC 
OHL 
EIFFAGE 
YIT 
NCC 
PEAB 
BALFOUR 
BAMSTRABAG 
0,0 0,5 1,0 1,5 2,0 2,5 
Average 2012: 1.33 
Average 2012: 0.4 
COLAS 
CARILLION 
Intangibles excluding concessions / Market capitalisation 

Source: Bloomberg, Deloitte analysis 

EPoC 2012 European powers of construction 21 


Enterprise value / EBITDA 

• The average Enterprise value / EBITDA multiple 
reached 6.3 in 2012, compared to 6.7 in 2011. 
• Balfour Beatty and Ferrovial recorded the highest 
enterprise value / EBITDA multiples at December 2012. 
FCC and ENKA also had double-digit ratios. 
• Conversely, groups such as ACS, Bouygues, Strabag 
and Colas recorded enterprise values approximately 
four times their 2012 EBITDA figures, with HOCHTIEF 
showing a lower multiple and BAM in negative 
territory. 
Capital expenditure / sales 

International construction groups have low capital 
expenditure / sales ratios as a result of the lower level of 
investment required in pure construction activities. 

Spanish groups such as OHL, Acciona and Ferrovial have 
significant investment levels due to the importance of 
their concession businesses. Also, Acciona’s energy 
business had high investment levels during the 
construction of the wind farms. 

Dividend yield 

The average dividend yield rose to 5.9% in 2012 from 
5.5% in 2011. 

Until 2011, FCC, Ferrovial, ACS and Bouygues offered 
potential investors higher dividend yields. However, in 
2012, FCC and ACS have announced the cancellation 
of the interim dividend out of results for 2012 due to 
the losses incurred. Even so, the investor remuneration 
policies of groups such as OHL, ENKA and Bam were not 
so generous. 

Net debt / EBITDA 

The average net debt / EBITDA ratio dropped from 3.1 in 
2011 to 2.7 in 2012. 

Eiffage and FCC have the highest net debt / EBITDA 
ratios with over 6 times EBITDA, whereas companies 
classified under our “international construction group” 
category, such as Skanska, HOCHTIEF and Strabag, are 
among the lowest. 


Enterprise value / EBITDA 


BALFOUR 
FERROVIAL 
FCC 
ENKA 
SKANSKA 
YIT 
NCC 
EIFFAGE 
ACCIONA 
PEAB 
CARILLION 
VINCI 
OHL 
BILFINGERCOLAS 
STRABAG 
BOUYGUES 
ACS 
HOCHTIEF

-9.4

BAM

18.6 

14.4 

11.0 

10.2 

8.9 

8.7 

8.3 

2012 

7.8 

2011 

7.5 

6.9 

6.6 

6.1 

6.1 

5.7 

4.1 Average 2012 = 6.3 
4.1 Average 2011 = 6.7 
4.0 
3.5 
2.6 

Capital expenditure / Sales 


OHL 
ACCIONA 
FERROVIAL 
ENKA 
HOCHTIEF 
BOUYGUES 
VINCI 
ACS 
BILFINGER 
FCC 
EIFFAGE 
PEAB 
STRABAGCOLAS 
SKANSKA 
YIT 
NCC 
BAM 
CARILLION 
BALFOUR

31% 
13% 

12% 
7% 
7% 
7% 


7% 

2012 

7% 

2011 

6% 
6% 
5% 


4% 
3% 
3% 



2% 
2% 
2% 
2% 



Average 2012 and 2011 = 6.0% 

1% 
1% 


-15 -10 -505 10 15 20

Dividend Yield 


05 101520253035

Net Debt/EBITDA 


FCC 
ACS 
FERROVIAL 
BOUYGUES 
NCC 
PEABCOLAS 
ACCIONA 
BALFOUR 
CARILLION 
SKANSKA 
VINCI 
YIT 
BILFINGER 
HOCHTIEF 
EIFFAGE 
STRABAG 
OHL 
ENKA 
BAM

12.8% 
10.7% 
10.1% 
8.6% 
7.2% 
6.7% 
6.3% 

2012 

6.1% 

2011 

5.8% 
5.8% 
5.4% 
5.1% 


4.7% 
4.5% 
4.5% 


4.1% 
3.0% 


Average 2012 = 5.9% 

2.6% 

Average 2011 = 5.5% 

2.4% 
2.3% 

FCC 
EIFFAGE 
FERROVIAL 
ACCIONA 
OHL 
PEAB 
BALFOUR 
YIT 
NCC 
VINCI 
ACS 
BOUYGUES 
SKANSKA 
HOCHTIEF 
CARILLION 
STRABAGCOLAS 
BILFINGER 
ENKA 
BAM

9.4 
6.3 
5.5 
5.2 
4.0 
2.8 
2.8 
2.5 
2.4 
2.3 
1.6 
1.5 
0.9 
0,7 
0.7 
0.3 
0.2 
0.2 
-0.9 
-5.6 
Average 2012 = 2.7 
Average 2011 = 3.1 
2012 
2011 
0%2%4%6%8% 10% 12% 14%

Source: Bloomberg, Deloitte analysis 

-8 -6 -4 -202468 10


EPoC 2012 European powers of construction 23 


24 
Internationalisation: 
Business opportunities 
The limited size of the Western European market and 
its negative performance in recent years have forced 
major European construction groups to look abroad for 
growth opportunities. As of today, our 2012 EPoC are 
present in the five continents and obtain about 56% of 
their revenues outside their national borders. Although 
international opportunities for our EPoC are significant, 
construction has traditionally been considered to be a 
local business and European construction companies 
have had mixed fortunes in past international projects. 
Internationalisation in the construction industry involves 
various risks regarding cultural differences, labour 
legislation and business practices. It is sometimes said 
that "the construction business is not a good traveler" 
and companies know that being awarded overseas 
contracts does not necessarily mean those contracts 
will be profitable, or that the company will be able to 
repatriate the cash that might be obtained abroad. 
Companies are aware of the risks associated with the 
internationalisation process, which in recent years 
has rapidly developed, almost exclusively due to the 
drop in domestic business. Against this backdrop, it is 
necessary to embrace internationalisation as an orderly 
process and anticipate certain major issues, the most 
noteworthy of which are as follows: 
+
- 
Business opportunities 
for Construction Groups 
0 
3,000 
6,000 
9,000 
12,000 
15,000 
FERROVIAL 
FCC 
OHL 
VINCI 
COLAS 
BOUYGUES 
BALFOUR 
SKANSKA 
HOCHTIEF 
ACS 
2012 2011 2010 
North America & Latin America 
0 
5,000 
10,000 
15,000 
20,000 
VINCI 
BOUYGUES 
HOCHTIEF 
ACS 
2012 2011 2010 
Asia & Oceania 
0 
500 
1,000 
1,500 
2,000 
OHL 
BILFINGER 
CARILLION 
BOUYGUES 
VINCI 
2012 2011 2010 
Africa 
Source: Deloitte analysis

HOCHTIEF 
STRABAG 
ACS 
SKANSKA 
OHL 
BILFINGER 
FCC BAM 
BALFOUR 
YIT 
ACCIONA 
COLAS 
VINCINCC 
BOUYGUES 
CARILLION 
PEAB 
EIFFAGE 

• Carefully make a prior selection of target countries 
and target projects, taking into account available 
knowledge of the local market and its regulatory, 
legal, tax and labor environment. 
• Understand hiring practices and management of 
requests to change firm orders in each local market. 
• Get to know the final customers and the network of 
subcontractors in destination countries. 
• Assess the convenience of working with local partners 
and / or acquiring local operators as a positioning 
strategy. 
• Analyze the risks in construction bids and concession 
projects when access to financing will make it 
necessary to work with financial partners, such 
as infrastructure and pension funds, which are 
destined to play an increasingly significant role in the 
international infrastructure market. 
International sales / Total sales % 

100% 
90% 
80% 
70% 
60% 
50% 
40% 
30% 
20% 
10% 
0% 

-7,00% -5,00% -3,00% -1,00% 

Available data suggest that generally 
EPoC have significantly higher margins 
in their home markets than abroad 

FERROVIAL 

ENKA 

1,00% 3,00% 5,00% 7,00% 

Construction EBIT / Construction sales % 

Source: Deloitte analysis 

EPoC 2012 European powers of construction 25 


In this context, it is worthy of note that most of our 
most internationalized EPoC registered below average 
construction margins in 2012. As shown in the attached 
chart, there seems to be an inverse correlation between 
the margins on construction activities and the level of 
internationalisation of the Top 20 EPoC. Those groups 
with a higher level of internationalisation obtain lower 
margins in its construction businesses. This conclusion 
is reinforced by analyzing the information detailing 
construction margins by geographical area that some of 
our EPoC include in their financial statements. Generally, 
EPoC have significantly higher margins in their home 
market than in foreign markets. 

A summary of the international markets and presence of 
our EPoC by region is as follows: 

The Americas 

When analyzing the economic growth of the continent 
and forecasts for 2013, we must differentiate between 
North America and Latin America. 

North America 

Growth in the United States remained lackluster in 2012, 
reflecting significant legacy effects of the financial crisis 
as well as a weak external environment. Nevertheless, 
construction activity rebounded in 2012, albeit from 
low levels; house prices began to rise; and job creation 
picked up in the second half of the year, bringing the 
unemployment rate below eight percent. The United 
States expectations for the coming years regarding 
construction activities are optimistic as a consequence 
of the significant deficit observed in infrastructure 
investments. Nevertheless, this potential growth has not 
come as fast as expected. 

In Canada, the U.S. recovery will support growth, but 
high household debt and moderate growth in the 
housing sector are likely to drag down weigh on private 
consumption and residential construction. In order to 
resolve the country’s current infrastructure shortage, it 
would be necessary to increase public investment by 
almost ten times the current levels. 

Latin America 

Growth is projected to increase to 3.5% in 2013, 
supported by a pickup in external demand and 
favourable financing conditions. An annual investment 
of $ 71,000 million is needed to resolve the current 
infrastructure shortage in the region. 

The presence of the EPoC in the Americas is led mainly 
by the companies detailed below: 

• ACS and HOCHTIEF have revenues of nearly € 
12,300 million and € 7,600 million respectively in 
the Americas, mainly the US and Canada but also in 
Latin America. Through subsidiaries such as Turner 
or Flatiron, ACS and HOCHTIEF are considered to be 
prestigious general builders and civil works contractors 
in the US. Also, ACS’s presence in the Americas is 
being strengthened through the activities performed 
by its Industrial Services Division, which recorded 
revenue of € 2,992 million in the area in 2012, mainly 
focused in Latin America. 
• Skanska, whose sales amounted to almost € 4,500 
million, is one of the leading construction companies 
in the U.S. for both building and civil construction 
through subsidiaries such as Skanska USA Building 
and Skanska USA Civil. Latin American operations are 
dominated by energy-sector operations. At December 
2012, the status of the order book remains highly 
favourable in the U.S., which indicates continued 
growth. 
Asia/Oceania 

Economic performance was subdued in Asia during 
2012, but growth is set to pick up gradually during 2013 
on strengthening external demand and continued robust 
domestic demand. As global risks recede, however, 
the risks and challenges emanating from within the 
region come more clearly into focus, including gradually 
increasing financial imbalances in some economies and 
the potential that any loss of confidence in regional 
economic policies could disrupt trade and investment. 


China’s growth is set to accelerate slightly, to about 8%, 
while in Japan and India growth is expected to reach 
1.5% and 5.75%, respectively, in 2013. Finally, growth 
in the ASEAN-5 economies will remain strong at 6% in 
2013, reflecting resilient domestic demand. 

Asian emerging economies are expected to invest 
around $ 165,000 million per annum in infrastructure 
over the next five years. This investment will amount 
to around 6% of these countries’ total GDP. China’s 
investment in infrastructure is expected to represent 
80% of the total investment forecasted for the area, 
while in India, infrastructure investment accounts for 6% 
of GDP. $ 250,000 million will be needed in the coming 
years for India to reach its GDP growth target. 

Australia and New Zealand have infrastructure shortages 
of $ 19,000 million and $ 4,000 million, respectively. 

ACS and HOCHTIEF are the leading EPoC in Asia/ 
Oceania, with aggregate sales exceeding € 15,300 
million. These companies are orchestrating their 
activities in the region through their majority 
shareholding in the Leighton Group, which holds 
leading positions in the Australian, Asian and Middle 
East construction markets. The Leighton Group 
boasts a broad portfolio of capabilities to service the 
infrastructure, resources and property markets, and is 
also the world’s largest contract miner. 

A long way behind ACS and HOCHTIEF, but with 
significant sales in the Asia – Pacific area, Bouygues 
obtained revenues of € 1,982 million in this region 
in 2012. Bouygues Construction continued working 
on major projects including both the SportsHub in 
Singapore and two sections of railway tunnels and the 
Kai Tak cruise terminal in Hong Kong. 

Vinci had revenue of over € 1,400 million in this area in 
2012. The presence in its shareholder structure of Qatari 
Diar which controls 5.5% of the group, is the best 
presentation for the company with a view to continuing 
its operations in the Middle East and the rest of Asia. 

Africa 

Sub-Saharan Africa is expected to continue growing at a 
strong pace in both 2013 and 2014, with both resource-
rich and lower-income economies benefiting from 
robust domestic demand. The external environment 
is the main source of risks to growth, particularly for 
middle-income and mineral-exporting economies. 

Headline growth in Sub-Saharan Africa in 2012 was 
visibly affected by the interruption of oil exports 
from South Sudan. Additionally, activity in Mali and 
Guinea-Bissau was disrupted by civil conflict in those 
countries. On the positive side, Angolan oil production 
strengthened, and Ivory Coast experienced a sharp 
rebound in economic activity after the election-related 
disruptions of 2011. In this area, growth is projected to 
reach 5.5% in 2013. 

The need for infrastructure development in emerging 
markets is critical. In most African countries, especially 
low-income countries, infrastructure emerges as a major 
constraint on doing business. The World Bank estimates 
that the cost of meeting the infrastructure needs of 
Africa is about $ 93 billion a year. 

The presence of EPoC 2012 in Africa is once again 
headed by Vinci. Sogea-Satom is Vinci’s main brand in 
Africa, where the Group obtained revenues of € 1,695 
million in 2012. The company’s strength in road works 
and earthworks, which account for more than half of its 
revenue, continued with a large number of construction 
and refurbishment projects, notably in Tanzania, 
Burundi, Chad and Burkina Faso and in the Congo. 

Bouygues achieved sales of € 1,483 million in Africa in 
2012. These sales were mainly obtained by Bouygues 
Construction in countries such as Morocco and South 
Africa. In 2012, the Group completed the acquisition of 
the South African company Dust-A-Side (mining works). 

Carillion completes the top three EPoC with sales of over 
€ 600 million in Africa. The British company has around 
40 years’ experience of operating in this region and it is 
focused on support and construction services in North 
Africa. 

EPoC 2012 European powers of construction 27 


Diversification of the EPoC 2012 


In previous years, the EPoC pursued diversification strategies aimed 
at increasing the margins obtained through the diversification of their 
portfolio into segments such as Industrial & Services or Concessions. There 
is an increasing correlation between the degree of diversification and the 
level of profitability achieved 

The construction industry’s performance in 2012 was activities that either share common clients with the 
once again affected by the deficit-cutting policies construction sector or are an integral part of the life 
adopted by most governments. In order to offset the cycle of infrastructure assets. 
negative effects of the economic and financial situation, 
most of the EPoC pursued diversification strategies At first glance, it is possible to identify a correlation 
aimed at both achieving sustainable growth and between the degree of diversification and the margins 
increasing the traditionally low margins obtained in the obtained. In 2012, EPoC’s levels of diversification were 
construction business. As in previous years, European in line with the previous year and non-construction sales 
construction companies diversification is focused on represented 23% of total revenue. 

Non - construction revenues / total revenues 
% 


100% 
90% 
80% 

70% 
60% 
50% 
40% 
30% 
20% 
10% 
0% 

STRABAG 
-5% 0% 5% 10% 15% 20% 

BAM 
FCC 
BOUYGUES 
EIFFAGE 
SKANSKA 
BALFOUR 
BILFINGER 
CARILLION 
HOCHTIEF NCC 
PEAB 
YIT 
COLAS 
ACS 
VINCI 
FERROVIAL 
ACCIONA 
ENKA 
OHL 

EBIT/ total revenues % 


Source: Deloitte analysis 


The top two groups by profitability level, OHL and 
ENKA, are also highly diversified companies. The 
Spanish group diversified its portfolio in previous years 
mainly by developing its concession business. EBIT for 
its concession division represented 80% of group’s 
total EBIT while the construction division accounted for 
18%. Nevertheless, in 2012 the Spanish company made 
various divestments in Brazil and Chile, which reduced 
its diversification level from 41% in 2011 to 32% in 
2012. As a consequence, total margins fell from 20% to 
16%. The Turkish group, ENKA, achieved a high level of 
diversification and margins through its energy business. 
However, in 2012 the level of diversification was 
reduced by 3% and total margins fell from 15% to 11%. 

Acciona, Eiffage and Ferrovial achieved higher 
profitability levels than companies such as Peab, ACS, 
Bouygues, Colas, HOCHTIEF, Skanska, Strabag and 
NCC, due to the effectiveness of their diversification 
strategies. In 2012, Acciona increased its level of 
diversification by seven percentage points due to the 
continuing expansion of its energy business and the 
contraction of construction activity in Spain. Eiffage’s 
diversification strategy remained in line with 2011 and 
no significant variations were observed in the margins 
obtained. Ferrovial, which is one of the EPoC with the 
highest margins, has diversified its portfolio through 
its services and highways divisions in recent years. As 
a consequence of fully consolidating HOCHTIEF for 
the whole year, the Spanish company ACS reduced its 
diversification level and margins by eight percentage 
points and 0.7 percentage points respectively. 

Despite being classified as highly diversified groups, 
the profitability levels of companies such as Bilfinger 
and Carillion were lower than those achieved by Vinci 
and Yit, which were classified as construction groups. 
However, in 2012 both the German and the British 
groups strengthened their diversification strategies, and 
their margins grew by 0.5 percentage points and one 
percentage point, respectively. 

The analysis of the diversification strategies adopted by 
our EPoC shows that while Industrial & Services is the 
segment into which the largest number of our EPoC 
have diversified, only two companies obtained sales 
of over € 1,000 million in the Environment & Water 
segment. The concession business is led by French 
groups Vinci and Eiffage, with sales exceeding € 1,000 
million, but Spanish groups ACS, Ferrovial and OHL 
also have a significant presence. Finally, groups such as 
Acciona, ENKA, Bilfinger and Eiffage have diversified 
into Energy activities. 

Even though the diversification level of the EPoC 2012 
remains in line with that of 2011, average margins have 
fallen by 1.3 percentage points. 

OHL and ENKA, which obtained the highest 
margins among EPoC 2012, are also highly 
diversified companies 

EPoC 2012 European powers of construction 29 


Company Construction 
Real Estate 
Development 
Concessions 
Industrial & 
Services 
Environment & 
Water 
Energy Telecom 
Other 
activities

 VINCI SA • 
ACTIV. DE CONSTR. Y SERV. SA (ACS) • 
BOUYGUES SA • 
HOCHTIEF AG • 
SKANSKA AB • 
EIFFAGE SA • 
BALFOUR BEATTY PLC • 
COLAS SA • 
STRABAG SE • 
FOMENTO DE CONSTR. Y CONT. SA (FCC) • 
BILFINGER SE • 
FERROVIAL SA • 
KONINKLIJKE BAM GROEP NV • 
ACCIONA SA • 
NCC AB • 
CARILLION PLC • 
PEAB AB • 
YIT OYJ • 
ENKA INSAAT VE SANAYI AS • 
OBRASCON HUARTE LAIN SA (OHL) • 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
l• 
• 
• 
l Sales over € 1,000 million l Sales below € 1,000 million l Relevant presence through equity investments l No presence or residual presence 
Source: Deloitte analysis 


Financing of EPoC 2012 


The construction business, which is generally 
characterized by low investment, tight margins and 
low working capital needs, has traditionally financed 
its operations with its own funds. However the 
trends towards higher participation of Public Private 
Partnerships (PPP) and Project Finance Initiatives (PFI) 
in the financing of civil engineering works and the 
diversification processes carried out by some of the 
major listed European construction companies in recent 
years, have required them to obtain financing that is still 
reflected in the consolidated balance sheets of the EPoC 
2012. 

At first glance, it is clear that further diversification 
normally goes hand-in-hand with higher net debt. 
Nevertheless, in 2012 the EPoC have been reducing their 
net debt figures: 

• At present, Vinci and Eiffage are the European 
construction groups with the highest net debt. 
Nevertheless, the ratio of Vinci’s net debt to EBITDA 
is lower than that of the most diversified groups. 
At December 2012, Eiffage’s net debt was six times 
higher than its EBITDA. 
Non - Construction revenues / Total revenues % 

100% 
90% 
80% 
70% 
60% 
50% 
40% 
30% 
20% 
10% 
0% 

• The Spanish groups Acciona, FCC, Ferrovial, OHL 
and ACS, and the French company Bouygues, 
have diversification levels above 20% and net debt 
exceeding € 4,000 million. In recent years, the Spanish 
Top 50 EPoC have been immersed in divestment 
processes that have reduced their net overall debt 
from € 95,910 million back in 2007 to € 39,067 
million in 2012 (a 59% decrease). In 2012 alone, ACS 
reduced its debt level by 47% to € 4,952 million. This 
reduction is mainly the result of the divestment in 
Iberdrola in 2012. Similarly, OHL significantly reduced 
its net debt, by 18%, to € 4,198 million through the 
sale of various subsidiaries such as Inima, OHL Brazil 
and OHL Chile. 
• Balfour Beatty, Carillion, Bilfinger and ENKA have 
managed to diversify their traditional construction 
businesses without creating significant leverage. The 
sectors on which Balfour Beatty and Carillion have 
focused (basically support services and professional 
services) do not require significant financing. ENKA’s 
high margins, as described in this publication, have 
enabled the Turkish group to maintain a favourable 
cash position. 

-2,000 -2,000 4,000 6,000 8,000 10,000 12,000 14,000 
ACS 
EIFFAGE 
BALFOUR 
FCC 
BAM 
ACCIONA 
CARILLION 
NCC 
OHL 
PEAB 
COLAS 
BILFINGER 
ENKA 
STRABAG 
SKANSKA 
HOCHTIEF 
BOUYGUES 
FERROVIAL 
VINCI 
YIT 
Net debt 

Source: Deloitte analysis 

EPoC 2012 European powers of construction 31 


Net Debt 


VINCI 
EIFFAGE 
ACCIONA 
FCC 
FERROVIAL 
ACS 
OHL 
BOUYGUES 
HOCHTIEF 
BAM 
YIT 
PEAB 
NCC 
SKANSKA 
BALFOUR 
CARILLION 
COLAS 
STRABAG 
BILFINGER 
ENKA 



-1,000 
4,000 
9,000 
14,000 
19,000 
2012 
2011 
2010 
Source: Deloitte analysis 

• Construction companies with low diversification 
levels, such as HOCHTIEF, Strabag, BAM, Peab, NCC 
and Colas, are among the less indebted of the Top 
20 EPoC, as corresponds to their focus on an activity 
currently associated with low external financing. 
In recent years, our EPoC have shown a certain degree 
of concern about their debt levels. As a result, total 
EPoC net debt fell by 3% in 2012 to €63,671 million 
while total net debt in 2011 had already decreased 
by 15% compared to 2010. Top 20 EPoC average Net 
Debt/EBITDA ratio was 3.5 times in 2010, but only 2.7 
times in 2012. 

Our analysis is based on the debt as recorded in the 
2012 financial statements of the respective EPoC. 
Consequently, the debt figures analyzed do not include 
the debt of non-controlling interests that are accounted 
for using the equity method, joint ventures that are not 
fully consolidated and PFI’s over which the respective 
company does not have control (which in some cases 
may be significant). 


Top 20 EPoC – 
Company profiles 


Vinci SA 



Vinci S.A.’s history dates back to 1891. In 2012 it 
continues to be positioned as the listed European 
construction group with the highest sales and market 
capitalisation. Vinci employs more than 192, 000 people 
in approximately 100 countries. 

Its main shareholders are institutional investors, both 
domestic (17.6%) and foreign (47.6%). The remaining 
shares are held by individual shareholders (10.9%), 
employees (9.9%), Qatari Diar Real Estate Investment 
Company (5.5%) and Financière Pinault (1.4%). Treasury 
shares account for 7.1% of the total shares of the Group. 

Vinci S.A. divides its business portfolio into 2 main 
segments: Concessions and Contracting. 

Concessions 

The Group’s concession business, located mainly in 
France, represents more than half of France’s concession-
based motorway network and in 2012 its revenue was 
1% higher than in 2011. 

Vinci Autoroutes is Europe’s leading motorway operator 
with a network of 4,385 km under concession and an 
operating profit from ordinary activities of € 2,019 million. 

Vinci Concessions manages a complete portfolio of 
transport infrastructure and public facility concessions in 
around 20 countries. In 2012, 67% of total revenue was 
generated by Vinci Park, the world’s leading operator of 
parking facilities, with the most comprehensive offering in 
this market. 

Contracting 

Vinci Energies, Eurovia and Vinci Construction make 
up the Contracting Business of Vinci, which employs 
176,500 people on 265,000 projects in around 100 
countries. 

The Vinci Energies business line emerged from the 
combination of Vinci Energies and Cegelec in 2010, and 
grew following the creation of Vinci Facilities. Sales of 
this division amounted to € 9,017 million in 2012 with 
operating income from ordinary activities representing 
5.6% of sales (sales of € 8,666 million with operating 
income of 5.6% of sales in 2011). 

Eurovia is a world leader in transport and urban 
development infrastructure. It obtains 41% of its revenue 
abroad, primarily in Western and Central Europe, North 
America, Chile and India. Eurovia’s performance was 
moderate in 2012, with 0.3% growth. At the end of 
2012 the company’s order book stood at € 6.4 billion, 
up 10% on 2011. This increase is primarily due to the 
inclusion of multi-year contracts gained in the United 
Kingdom and the backlog acquired with the new 
subsidiaries in Canada and India. 

VINCI Construction turned in another solid performance 
in 2012. Although Vinci Construction, which is France´s 
leading construction company and a major global player, 
has always been located in France, 45% of total revenue 
was generated abroad in 2012. Revenue itself grew by 
8.6% to € 15,327 million in the year. VINCI Construction’s 
business is composed of three complementary 
components: 

• A network of French subsidiaries, through Vinci 
Construction France, and internationally through Vinci 
Construction UK, CFE (mainly in Benelux), Warbud, 
Prumstay, SMP, SMS and APS Alkon in Central Europe, 
and Sogea-Satom in Africa. 
• Specialized civil engineering subsidiaries, mainly 
Soletanche Freyssinet, Entrepose Contracting and 
Deme, serving global markets. 
• A division engaging in the execution and management 
of complex projects, with Vinci Construction Grands 
Projects, Vinci Construction Terrassement and Dodin 
Campenon Bernard. 
Vinci, which obtained a net income of over € 2,000 
million, is ranked the EPoC leader in terms of both 
revenue and market capitalisation 


VINCI had a robust year in 2012, with further growth in 
revenues and net income despite a difficult economic 
climate, particularly in Europe. Contracting kept up its 
good business momentum throughout 2012, especially 
outside France. At December 31, 2012, VINCI’s order 
book stood at € 31.3 billion (a 2% increase over 2011 
year-end), 45% of which is located outside France. By 
business line, the construction order book amounted to 
€ 18,100 million (representing 14 months of average 
business activity), the energy order book amounted to 
€ 6,800 million, up 5% on 2011 (9 months of average 
business activity) and Eurovia’s order book amounted to € 
6,400 million, almost 10% higher than the previous year 
(9 months of average business activity). 

Sales by geographical area 


1,435 

1,695 
1,833 
1,101 
1,614


2,374


24,324 

2,257 
2,001 


Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 38,032 37,202 36,410 2.2% 
Current assets 23,559 23,373 20,003 0.8% 
Total assets 61,591 60,575 56,413 1.7% 

Liabilities and shareholders' equity 
Shareholders' equity 14,070 13,615 13,025 3.3% 
Non-Current liabilities 20,562 21,223 21,431 (3.1%) 
Current liabilities 26,959 25,737 21,957 4.7% 
Total liabilities and shareholders' 
equity 
61,591 60,575 56,413 1.7% 

Income statement 
Sales 38,634 36,956 33,376 4.5% 
National Sales 24,324 23,562 20,927 3.2% 
International Sales 14,310 13,394 12,449 6.8% 
Construction Sales 33,090 31,495 28,150 5.1% 
Non construction Sales 5,544 5,461 5,226 1.5% 
EBITDA 5,418 5,366 5,052 1.0% 
EBIT 3,651 3,601 3,429 1.4% 
Net income 2,025 1,996 1,900 1.5% 
Net income atributable to the Group 1,917 1,904 1,776 0.7% 

Other Key Data 
Net debt 12,527 12,590 13,060 (0.5%) 
Order book 31,300 30,562 25,900 2.4% 
Market capitalisation * 20,735 19,077 23,694 8.7% 

* 2010 market capitalisation refers to may 2011 
France 

Rest of Europe 

Central and Eastern Europe 

America 

United Kingdom 

Africa 

Germany 

Asia, Middle East, 

rest of the world 

Benelux 

Sales by segment

 190 


5,354

 33,090


Concessions 


Contracting 


Holding companies and misc. 


EPoC 2012 European powers of construction 35 


ACS Group 


ACS showed high losses and reduced its 
debt level by 47% in 2012 as a result of 
the divestments at Iberdrola 


Since starting its business activities in 1983, ACS has 
become a world leader in construction and services 
activities, with more than 161,800 employees 
worldwide. 

The Group’s main shareholders are Spanish investors 
(Corporación Financiera Alba has 18.3%, Corporación 
Financiera Alcor 12.6% and Inversiones Vesan 12.5%). 

The Group’s portfolio is divided into the following 
segments: 

Construction 

The Group’s construction business was traditionally 
headed by Dragados until 2011, when the group made 
certain new acquisitions. In 2012 total construction 
revenues increased by 49.9% to € 29,683 million. 
Approximately 86% of total construction revenues 
were generated by HOCHTIEF, the listed German 
company fully consolidated since June 1st, 2011, in 
which ACS holds an interest of approximately 50%. 
The construction business segment comprises mainly 
civil engineering projects, building projects, concession 
projects, mining and property. The Group’s international 
presence significantly grew due to the consolidation of 
HOCHTIEF in 2012. 

The Group’s concession business is managed by Iridium 
and achieved sales of € 116 million in 2012. 

Environment 

The Group’s Environment business traditionally includes 
waste management, treatment plants and other 
activities related to environmental protection and 
improvement, and the outsourcing of building facility 
maintenance. Approximately 26% of the division’s sales 
(€ 1,691 million) were obtained abroad. The order book 
for the Environment division is 2.9% higher than in 
2011, at € 9,201 million. 

Industrial Services 

The main projects performed are maintenance activities 
for power, gas and water distribution networks, 
telecommunications systems, railway installations, 
climate control systems, engineering, urban services 
such as traffic and transport systems, integrated 
maintenance of public infrastructure, wind farms and 
industrial solar thermal energy plants. 

Total revenue remains stable at € 7,050 million (€ 7,045 
million in 2011) despite the downturn in the Spanish 
market. This is due to the increase in the Group’s 
international presence, which is responsible for 58% of 
the division’s sales (48% in 2011). 

Strategic Investments 

As part of its corporate strategy, in 2012, ACS sold its 
entire investment in Abertis and significantly reduced 
its holding in Iberdrola (to 1.22% of Spain’s leading 
energy company at December 2012 from 18.83% a year 
earlier). 

The Group’s order book totaled €65,626 million, which 
is slightly (0.8%) lower than in 2011. Its business 
segments are Construction (€ 49,264 million), Industrial 
Services (€ 7,161 million) and Environment (€ 9,201 
million). 

ACS had a difficult year in 2012, with a net attributable 
loss of € 1,926 million due to the non-recurring losses 
from its holding in Iberdrola. However underlying net 
profit reached € 705 million (down 9.9%), affected 
by lower activity in Spain that was partly offset by 
international activity. 


Key Data 2012 2011 2010 
Variation 
% 
Assets 
Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 15,173 20,040 15,995 (24.3%) 
Current assets 26,390 27,948 18,190 (5.6%) 
Total assets 41,563 47,988 34,185 (13.4%) 

Liabilities and shareholders' equity 
Shareholders' equity 5,711 6,191 4,443 (7.8%) 
Non-Current liabilities 10,917 13,477 10,771 (19.0%) 
Current liabilities 24,935 28,320 18,971 (12.0%) 
Total liabilities and shareholders' 
equity 
41,563 47,988 34,185 (13.4%) 

Income statement 
Sales 38,396 28,472 15,380 34.9% 
National Sales 5,975 7,823 10,488 (23.6%) 
International Sales 32,421 20,649 4,892 57.0% 
Construction Sales 29,683 19,683 5,593 50.8% 
Non construction Sales 8,713 8,789 9,787 (0.9%) 
EBITDA 3,088 2,318 1,505 33.2% 
EBIT 1,591 1,374 1,077 15.8% 
Net income (1,405) 1,108 1,355 (226.8%) 
Net income atributable to the Group (1,926) 962 1,312 (300.2%) 

Other Key Data 
Net debt 4,952 9,334 8,003 (46.9%) 
Order book 65,626 66,151 28,777 -0.8% 
Market capitalisation * 5,991 7,206 10,773 (16.9%) 

* 2010 market capitalisation refers to may 2011 
Sales by geographical area

223

 5,975

 15,551

 
4,349 


12,298 


Spain 


Asia Pacifico 


Rest of Europe 


Africa 


America 


Sales by segment

(28) 
7,050 

1,691 

29,683


Construction & concesions 

Industrial Services 

Environment 

Eliminations 

EPoC 2012 European powers of construction 37 


Bouygues SA 



Founded by Francis Bouygues in 1952, Bouygues is 
a diversified industrial group with a strong corporate 
culture. With a workforce exceeding 133,000 employees 
and a presence in more than 80 countries, the Group 
posted total revenue of € 33,547 million in 2012. 

The Group´s main shareholder is SCDM (a company 
controlled by Martin and Oliver Bouygues) with a 20.5% 
holding. In addition, 23.7% of the total share capital 
is controlled by a group of over 60,000 employees (up 
from 23.4% in 2011). 

Bouygues is structured as follows: 

Construction 

This segment includes Bouygues Construction (building, 
civil engineering, energy and services), Bouygues 
Immobilier (property development) and Colas (the listed 
transport infrastructure company in which Bouygues 
holds an interest of 96.6%). In 2012, sales rose by 4.3% 
to € 25,753 million. 

Bouygues Construction’s total sales and operating 
profit grew by 6.1% and 3.1% in 2012 to € 10,401 
million and € 364 million, respectively. Sales fell slightly 
in France in the year, but increased by 11.2% abroad. 
Bouygues Construction operates all over the world and 
has recently expanded in the United Kingdom with the 
acquisition of Leadbitter and Thomas Vale. 

Bouygues Immobilier, which develops residential, 
commercial and sustainable neighborhood projects, 
reported a 2.8% decrease in sales to €2,396 million 
in 2012, mostly from residential property reservations 
made in recent years. The operating margin (7.5%) 

Bouygues reduced its net income by 
41% as a consequence of the lower 
results from its telecom business 

and net profit (€ 107 million) fell by 0.7% and 11%, 
respectively, reflecting the impact of certain adjustment 
measures taken in response to a contracting market. 

Colas operates in transport infrastructure construction 
and maintenance in 50 countries worldwide. In 2012 
it recorded a 5% rise in sales to € 13,036 million 
(composed of a 9.6% increase in France and 1.4% in 
international markets). Its financial position remains 
robust, with net debt of € 170 million and shareholders’ 
equity of € 2,544 million at the end of 2012. The order 
book was up 4% to € 6.7 billion. Colas launched a 
new organization for its roads activity in France and is 
developing sources of growth in high-potential areas of 
North America and Australia and in its rail activity. 

Telecoms / Media 

This line of business includes TF1 and Bouygues 
Telecom, with total sales of € 7,847 million. 

TF1’s sales were stable at € 2,621 million. The 
contraction in advertising revenues at the TF1 TV 
channel was offset by its diversification activities, 
which represent a source of growth for the group. TF1 
is France’s leading French general-interest television 
channel, with a 28.4% average audience share in 2012. 
In 2012, TF1 signed a strategic alliance with Discovery 
Communications to strengthen the Group’s activities in 
the provision of pay-TV content. The TF1 group is also 
expanding in the freesheet and audiovisual production 
segments. 

Created in 1994, Bouygues Telecom has 11,251 million 
mobile customers and 1,846 million fixed broadband 
customers. Bouygues Telecom's sales fell by 9% to 
€5,226 million in 2012. In the fiercely competitive 
French mobile phone market marked by the arrival of a 
fourth operator offering a low-cost plan, the company 
lost some mobile customers. However, Bouygues 
Telecom continued to grow in the fixed broadband 
market by signing up 605,000 new customers. 


Other 

Alstom, which is consolidated as an equity investment in 
the Group’s financials, is a world leader in rail transport, 
power generation and transmission infrastructure. 
Alstom contributed € 240 million to Bouygues' net profit 
in 2012, compared with € 190 million in 2011. 

The Group´s total order book grew by 8% to 
approximately € 26,800 million. Bouygues Construction 
represents 63.8% of the total backlog, while Bouygues 
Immobilier and Colas represent 11.2% and 25%, 
respectively. 

2012 net attributable income amounted to € 633 
million, a 41% decrease on 2011, mainly due to the 
upheaval seen in the French mobile market that has 
impacted the results of the Group´s telecoms division. 

Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 20,170 19,442 18,620 3.7% 
Current assets 16,584 15,480 16,966 7.1% 
Total assets 36,754 34,922 35,586 5.2% 

Liabilities and shareholders' equity 
Shareholders' equity 10,078 9,678 10,607 4.1% 
Non-Current liabilities 9,845 8,875 8,732 10.9% 
Current liabilities 16,831 16,369 16,247 2.8% 
Total liabilities and shareholders' 
equity 
36,754 34,922 35,586 5.2% 

Income statement 
Sales 33,547 32,706 31,225 2.6% 
National Sales 22,308 22,601 21,506 (1.3%) 
International Sales 11,239 10,105 9,719 11.2% 
Construction Sales 25,753 24,679 23,003 4.3% 
Non construction Sales 7,794 8,027 8,222 (2.9%) 
EBITDA 2,822 3,242 3,701 (13.0%) 
EBIT 1,286 1,819 1,760 (29.3%) 
Net income 728 1,237 1,263 (41.1%) 
Net income atributable to the Group 633 1,070 1,071 (40.8%) 

Other Key Data 
Net debt 4,172 3,862 2,473 8.0% 
Order book 26,874 24,883 22,621 8.0% 
Market capitalisation * 7,053 7,665 12,122 (8.0%) 

* 2010 market capitalisation refers to may 2011 
Sales by geographical area

 1,483

1,982 
223 
2,827

 4,724

 22,308


France 

Central/ South America 

Rest of Europe 

Asia-Pacific 

North America 

Africa and Middle East 

Sales by segment

 25,7537,794
Construction 


Telecoms/Media and eliminations 


EPoC 2012 European powers of construction 39 


HOCHTIEF AG 



HOCHTIEF is one of the leading global construction 
groups and can look back on a 140-year history. With 
nearly 80,000 employees and sales volume of € 25,528 
million in 2012, HOCHTIEF continued to be the number 
one German construction group. The Company is 
represented in all significant markets around the world, 
with 93% of its sales made abroad. 

In 2012, 49.9% of the Company’s shares were held by 
the ACS Group, 10% by Qatar Holding LLC Doha and 
4.40% by HOCHTIEF as treasury shares. Free-floating 
HOCHTIEF shares accounted for 35.7% of the total at 
December 31, 2012. 

HOCHTIEF segments its business into four divisions on a 
geographical basis: 

HOCHTIEF Americas 

The HOCHTIEF Americas division coordinates the 
activities of the HOCHTIEF companies in the USA and 
Canada and operates in the building construction, civil 
engineering and infrastructure segments. 

The Americas division recorded a high intake of 
new orders with attractive projects in both building 
construction and civil engineering. In January 2012, 
through its subsidiary Turner, HOCHTIEF Americas 
purchased a majority stake in Clark Builders, 
Canada. 

HOCHTIEF returned to the profit zone 
in 2012 after a troubled 2011 marked 
by the losses at its Australian subsidiary 
Leighton 

The division has more than 8,300 employees and 
increased its total sales by 19.3% in 2012 to € 7,375 
million. HOCHTIEF Americas increased its backlog 
through acquisitions in the urban and transportation 
infrastructure areas. As a result, new orders grew by 
36.1% and amounted to € 9,580 million at December 
2012. 

HOCHTIEF Asia Pacific 

HOCHTIEF is present in Asia, Australia and the Middle 
East via its majority ownership interest (53.4%) in 
the Leighton Group. Its services encompass building 
and infrastructure construction, the extraction of raw 
materials, concessions, project development, and 
maintenance and services. 

As a leading operator and manager in the contract 
mining sector, Leighton manages to significantly expand 
its portfolio of contracts year after year. The Group also 
ranks among the leading players in the infrastructure 
sector, particularly road construction, and in the water 
and energy sectors. 

Total sales increased by 11.4% to € 15,180 million in 
2012. This is due primarily to the high order backlog 
from the previous year and faster than expected 
progress in the construction of certain major projects. 
Although earnings continued to be adversely affected 
by two difficult projects, Airport Link and the Victorian 
Desalination Plant, as they progressed to final 
completion, the associated losses were offset by the 
strength of the other operating results. 

HOCHTIEF Europe 

The HOCHTIEF Europe division plans, develops, 
implements, operates and manages real estate and 
infrastructure facilities. Division sales were 15% lower 
than in 2011, at € 2,856 million. 

The biggest impact on earnings in the HOCHTIEF Europe 
division in 2012 was from the Elbe Philharmonic Hall 
building construction project in Hamburg and the main 
positive impact on earnings was the successful sale 
of the 45.45% investment in Chile’s Vespucio Norte 
Express toll expressway. In addition, the company won a 
number of attractive new contracts in the transportation 
infrastructure segment in the year. 


Other Sales by geographical area 


The Group’s other businesses include Services and 

3 


1,857

Concessions. Its portfolio comprises airport holdings, 
roads, schools, police facilities, community centers, 
barracks and geothermal projects. 

The order book at December 2012 had risen by 2% to 
€ 49,790 million. The total order book represents more 
than 20 months of activity. 

2012 net attributable profit amounted to € 158 million, 7,563 
after a loss of € 160 million in prior year mainly due to 
the losses incurred by its Australian subsidiary Leighton. 

12,4872,868750
Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 4,838 5,214 5,868 (7.2%) 

Germany 


America 


Current assets 12,124 10,582 9,118 14.6% 

Rest of Europe 


Asia 


Total assets 16,962 15,796 14,986 7.4% 

Liabilities and shareholders' equity 
Australia 


Africa 


Shareholders' equity 4,244 4,110 4,264 3.3% 
Non-Current liabilities 3,738 3,199 3,373 16.8% 
Current liabilities 8,980 8,487 7,349 5.8% Sales by segment 
Total liabilities and shareholders' 
equity 
16,962 15,796 14,986 7.4% 117

Income statement 
2,8567,375

Sales 25,528 23,282 20,159 9.6% 
National Sales 1,857 2,055 1,642 (9.6%) 
International Sales 23,671 21,227 18,517 11.5% 
Construction Sales 25,400 23,131 19,312 9.8% 
Non construction Sales 128 151 847 (15.2%) 

EBITDA 1,722 845 1,643 103.8% 
EBIT 595 626 715 (5.0%) 
Net income 385 (168) 546 (329.2%) 
Net income atributable to the Group 158 (160) 288 (1.3%) 


Other Key Data 
Net debt 1,164 990 772 17.6% 

15,180 

Order book 49,790 48,670 47,490 2.3% 

Market capitalisation * 3,383 3,442 4,451 (1.7%) 

HOCHTIEF Americas 

HOCHTIEF Europe 

* 2010 market capitalisation refers to may 2011 
HOCHTIEF Asia Pacific 

Other 

EPoC 2012 European powers of construction 41 


Skanska 


Skanska, which is considered as an 
international construction group, 
obtained around 76% of total sales 
abroad while construction margin 
remained above average 


Skanska is one of the world’s leading project 
development and construction groups, with experience 
in construction, development of commercial properties 
and residential projects as well as public-private 
partnerships. The company operates in selected markets 
in the Nordic region, other European countries and in 
the Americas. 

The origin of the Company dates back to 1887 when 
Aktiebolaget Skånska Cementgjuteriet was established 
and started manufacturing concrete products. More 
than a century later, approximately 76% of Skanska’s 
sales are obtained outside Sweden. 

Skanska’s main shareholders are Swedish companies 
and institutions that together own 77.1% of the Group. 
Foreign shareholders control 22.9% of the company. 

The Nordic countries constitute Skansa’s largest market, 
from where it obtains 44% of its total annual revenue. 
The main activities in this market are construction, 
residential development and commercial property 
development. 

Skanska obtained 21% of its total revenue from 
non-Nordic European countries in 2012, and is one 
of the largest construction companies in the Czech 
Republic and Poland. It is also one of the leading 
construction companies in the United Kingdom. In all 
three markets, its operations mainly comprise building 
and civil construction. 

35% of Skanska’s total 2012 revenue was obtained in 
the Americas, where its business is mainly focused on 
construction activities. The U.S. construction market is 
the world´s second largest and Skanska is one of the 
leading companies in building and civil construction. 
Latin American operations are dominated by energy-
sector work. 

The Group’s structure separates construction, which 
represented 96% of the Group’s total sales in 2012, 
from its other businesses, which can, in turn, basically be 
subdivided into residential development and commercial 
property development. 

Skanska's construction business executes building, 
civil and residential construction work. It also performs 
commissions of a service-related nature, such as 
construction management services and facility operation 
and maintenance. In 2012, total construction revenues 
rose by 12.3% to € 14,305 million, an amount that was 
distributed among more than 10,000 projects. 

Skanska has performed residential development work 
in the Nordic countries, Czech Republic and Slovakia for 
many years. In recent years the Company has expanded 
its residential development operations to Poland and 
the United Kingdom. In 2012, Skanska sold more than 
3,060 homes and started the construction of another 
2,993. 

The commercial property development division reached 
record levels in 2012 with 25 ongoing projects in 
markets such as the Nordic countries, Central Europe 
and the United States. This project development work 
focuses on three types of products: office properties, 
shopping malls and logistics properties or distribution 
centers. 

The Group’s order book increased by 1% to € 13,992 
million in 2012, of which 35.4% came from the Nordic 
countries and 45.5% from the Americas and the rest 
of the world, the most noteworthy countries being the 
UK, Poland and Czech Republic. The Group’s orders also 
came mainly from the Nordic countries and the US in 
2011, but the percentages were quite different (41% 
and 32%, respectively). 


Sales by geographical area

2012 net attributable income amounted to € 328 

million, down 61% on the previous year, mainly due 
to the impairment losses and provisions recorded in 
respect of Latin American construction and residential 

3,568

development operations. In addition, 2011 included 
a capital gain of € 499 million from the divestment of 
Autopista Central in Chile. 

Key Data 2012 2011 2010 
Variation 
% 
6,748


Assets 
Non-current assets 2,158 2,075 1,733 4.0% 
Current assets 8,123 7,212 6,931 12.6% 

4,545

Total assets 10,281 9,287 8,664 10.7% 

Liabilities and shareholders' equity 
Shareholders' equity 2,255 2,197 2,318 2.6% 
Non-Current liabilities 1,106 677 445 63.4% 
Current liabilities 6,920 6,413 5,901 7.9% Sweden 
Total liabilities and shareholders' 
equity 
10,281 9,287 8,664 10.7% 
United States 
Other Countries 


Income statement 
Sales 14,861 13,149 12,815 13.0% 
National Sales 3,568 3,379 2,435 5.6% 
International Sales 
Construction Sales 
11,293 
14,305 
9,770 
12,732 
10,380 
11,871 
15.6%
12.3%
Sales by segment 
Non construction Sales 556 417 944 33.5% 556 


EBITDA 655 1,105 735 (40.8%) 
EBIT 462 932 572 (50.5%) 
Net income 329 841 422 (60.9%) 
Net income atributable to the Group 328 840 422 (61.0%) 

Other Key Data 
Net debt 621 178 (308) 249.1% 
Order book 13,992 13,867 15,421 0.9% 
Market capitalisation * 5,227 5,116 6,040 2.2% 
* 2010 market capitalisation refers to may 2011 

14,305


Construction 


Other activities 


EPoC 2012 European powers of construction 43 


Eiffage 


Eiffage remained in sixth place in our 
ranking by revenue, while it climbed 
four positions in terms of market 
capitalisation 


Eiffage started operations a century and a half ago and 
nowadays is a leader in the European concessions and 
public works industry. 

In 2012, Eiffage´s revenues rose by 2.2% to €14,035 
million. The Group is present around the world, mainly 
in Europe, and 85% of its total revenue is generated in 
France. 

Eiffage involves its more than 65,000 employees in the 
Group’s culture through share-based remuneration. 
29.2% of the Company was owned by its employees at 
December 31, 2012. The remaining shareholders were 
mainly institutional investors, with 34.9%, and a free 
float of 33.8%. 

Eiffage divides its operations into the following business 
lines: 

Concessions and public-private partnerships 
(PPPs) 

Eiffage Concessions is a builder and concession operator 
of motorways and other large infrastructures, public 
facilities, buildings and urban developments and is 
considered to be the second-most important concession 
operator in France. The subsidiaries APRR and AREA 
operate toll and toll-free motorways under concession 
from the State. 

The division’s total sales grew by 1.4% to € 2,175 
million, representing 15% of total Group revenues. 

Construction 

Eiffage Construction includes all trades related 
to construction, urban development, real estate 
development, work services and facility management. 
The company has strong local roots in eleven major 
French regions and offices in the Benelux countries, 
Portugal, Poland and Slovakia. 

Total construction sales in 2012 remained stable 
compared to 2011, at € 3,798 million, representing 
27% of the Group’s total revenue. 

Public Works 

Eiffage´s Public Works division has expertise in all 
businesses relating to road and rail construction projects, 
civil engineering, drainage and earthworks. 

The Public Works division´s revenues in 2012 were 
similar to those of the previous year at € 3,941 million. 

Energy 

Clemessy and Eiffage Energie, specializing in electrical 
engineering, HVAC and process automation, provide 
comprehensive turnkey solutions including the design, 
construction, operation and maintenance of special 
purpose and multi-technical facilities for all sectors of 
activity. 

This division’s total sales increased by 3% in 2012 to € 
3,229 million. The Energy division operates in a stable 
market with low exposure to cyclical fluctuations and its 
most significant operations are carried out in Germany, 
Belgium and Spain. 

Metal 

Eiffage Construction Métallique applies its expertise to 
all areas of metal construction, including engineering 
structures, elevations, buildings, mechanical 
engineering, offshore structures, boiler-making, 
industrial maintenance, valves and pipe systems. 

The Group’s metal business achieved 15% growth in 
sales to €892 million, due to a higher volume of activity 
in the French market. 


The Group’s order book decreased by 10% to €12,170 Sales by geographical areamillion in 2012. This still represents over 12 months of 

243

contracting revenue. 

2012 net attributable income amounted to € 220 
million, a 7.3% increase on 2011 and close to the 2010 
level. The results achieved are mainly generated by 
the good performance of its Public Works and Energy 
divisions. 

1,903
11,889


Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 18,940 18,950 19,716 (1.8%) 
Current assets 8,959 8,220 6,277 (12.7%) 
Total assets 26,985 27,170 25,993 (5.1%) 

Liabilities and shareholders' equity 
Shareholders' equity 2,240 2,347 2,501 (1.2%) France 
Non-Current liabilities 15,786 16,182 15,622 (12.9%) Rest of Europe 
Current liabilities 8,459 8,641 7,870 8.5% Other Countries 
Total liabilities and shareholders' 
equity 
26,985 27,170 25,993 (5.1%) 

Income statement 
Sales 14,035 13,732 13,553 2.2%

Sales by segment

National Sales 11,889 11,579 11,185 2.7%

 International Sales 2,146 2,153 2,145 (0.3%)

892

 Construction Sales 7,739 7,670 7,508 0.9%

 Non construction Sales 6,296 6,062 5,822 3.9% 
EBITDA 1,972 1,980 1,831 (0.4%) 

3,798 


EBIT 1,199 1,104 1,041 8.6% 

3,229 


Net income 257 263 326 (2.3%) 
Net income atributable to the Group 220 205 232 7.3% 


Other Key Data 
Net debt 12,469 12,645 13,213 (1.0%) 
Order book 12,170 13,470 10,735 (9.7%) 
Market capitalisation * 2,926 1,630 3,806 79.5% 

* 2010 market capitalisation refers to may 2011 2,175 
3,941

Construction 
Energy 
Concessions 
Metal 
Public works 


EPoC 2012 European powers of construction 45 


Balfour Beatty 



Balfour Beatty is a global infrastructure group 
that delivers world class services essential to the 
development, creation and care of infrastructure assets; 
from finance and development, through design and 
project management to construction and maintenance. 
The company has 50,000 employees worldwide; it 
operates in more than 80 countries and across the life 
cycle of infrastructure assets. 

In 2012, around half of the Group’s revenues were 
generated abroad, with over 33% stemming from the 
Americas and 19% from the rest of the world. 

Balfour Beatty’s main shareholders are British 
institutional investors each holding more than 3% of the 
Company’s shares: Prudential Plc. (5.10%), BlackRock, 
Inc. (5.01%), Causeway Capital Management LLC. 
(4.98%) and Standard Life Investments Limited (3.65%). 

Balfour Beatty’s activity is segmented into four business 
lines: Construction Services, Professional Services, 
Support Services and Infrastructure Investments. 

Construction services 

The Group manages market leading construction 
businesses in the UK, the US, Hong Kong and the 
Middle East. Construction services include civil and 
ground engineering, rail engineering, building, 
refurbishment and fit-out and mechanical and electrical 
services. 

In 2012, difficult market conditions led to lower 
volumes and competitive pricing. Total sales declined 
by 1.3% to GBP 6,959 million, although sales in euros 

Balfour Beatty, which accounted for 
33% of total income obtained by the 
British EPoC, climbed one position in 
our ranking by revenue 

increased by 5.7%. This is explained by excellent growth 
in Hong Kong and the US, which was offset by a 1% 
decline in the UK, particularly in civil infrastructure. 

Professional services 

The wide range of services provided by this segment 
includes, inter alia, project and construction 
management, project design or technical services. 

Sales in this segment amounted to € 2,057 million, 
representing 8.5% growth on 2011. In 2012, the Group 
increased its share of the transportation market in the 
Americas. In this market, the authorization granted by 
the Transportation Act in July 2012 eased the progress 
of several projects that were at a design stage and its 
benefits will be noted in the coming years. Finally, in 
2012 this segment completed the acquisition of Surface 
Group in order to consolidate the diversification of the 
portfolio. 

Support services 

The Group’s support services include facilities 
management and business services outsourcing, 
upgrade and maintenance of water, gas and electricity 
networks, highway network management, operation 
and maintenance and rail renewals. 

In 2012, support services sales grew by 10.4% to € 
2,014 million. The company continued to record growth 
across most market segments, won new gas distribution 
contracts worth € 1.35 billion in the UK and started 
working on its first contract in Ireland. 

Infrastructure investments 

This segment operates a portfolio of long-term PPP 
concessions, primarily the education, military, health 
and roads/street lighting activities. This division invests 
in infrastructure and in geographical areas where the 
Group has a presence through the activities of other 
segments. 

In 2012 the division’s total revenue saw a reduction 
of 10%, to € 785 million. The company leveraged its 
US military housing experience to establish a student 
accommodation portfolio in the US and UK and made 
significant progress in UK waste and energy projects. 


The Group’s order book remained at a similar level Sales by geographical area 
to 2011, at € 18,379 million, of which Construction 
Services represented 52.3%, Support Services 37.2% 
and Professional Services 10.5%. 2012 is the third 
consecutive year with an order book over €17 million, 
which is a significant achievement, given the prevailing 
economic conditions. 

In 2012, net attributable income dropped to € 
54 million, down 81% on 2011, mainly due to 
non-recurring items such as goodwill impairment 
(European rail business) and restructuring and 
reorganization costs relating to other existing 

4,370 

businesses. 

1,910 
598 
6,560 
Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 3,919 3,612 3,384 8.5% 
Current assets 3,178 3,298 2,871 (3.6%) 
Total assets 7,097 6,910 6,255 2.7% 

Liabilities and shareholders' equity 
Shareholders' equity 1,604 1,512 1,349 6.1% 
Non-Current liabilities 1,495 1,326 1,465 12.7% 
Current liabilities 3,998 4,072 3,441 (1.8%) 
Total liabilities and shareholders' 
equity 
7,097 6,910 6,255 2.7% 

Income statement 
Sales 13,439 12,715 12,288 5.7% 
National Sales 6,560 6,566 5,820 (0.1%) 
International Sales 6,878 6,149 6,468 11.9% 
Construction Sales 8,583 8,123 7,860 5.7% 
Non construction Sales 4,856 4,592 4,428 5.8% 
EBITDA 146 432 422 (66.2%) 
EBIT 91 280 240 (67.4%) 
Net income 54 214 167 (74.6%) 
Net income atributable to the Group 54 280 167 (80.6%) 

United Kingdom 

Europe 

America 

Other Countries 

Sales by segment

 785

2,014

 2,057 



8,583 


Other Key Data 
Net debt 
Order book 
Market capitalisation * 
408 
18,379 
2,309 
(10) 
18,197 
2,179 
(288) (4,180.4%) 
17,719 1.0% 
2,547 6.0% 
Construction services 
Professional services 
Support services 
Infrastructure Investments 
* 2010 market capitalisation refers to may 2011 

EPoC 2012 European powers of construction 47 


Colas 



Colas is a leader in the construction and maintenance 
of transport infrastructure all over the world. It also 
operates in road construction and maintenance, as 
well as all other types of transport infrastructure and 
urban development. In 2012, the Group had more than 
62,800 employees and operated in 50 countries across 
five continents. 

Total revenue amounted to € 13,036 million in 2012, a 
5% increase on the previous year, despite a slow-moving 
economic environment. Growth came mainly from 
international operations, where progress was noted in 
every area except central Europe. Approximately 56% 
of total sales are obtained in France, its main market, 
where it increased sales slightly (2%). 

Colas’ main shareholder is Bouygues, which controls 
96.6% of the Group. Colas also has interests in 
infrastructure concession and management companies, 
notably Cofiroute, in which it has a 16.7% stake. 

The Group has two operating divisions: Roads and 
Specialized business activities. 

Roads 

This segment is the Group’s core business, accounting 
for over 80% of its operations. It includes the 
construction and maintenance of roads, highways, 
runways, ports, logistics hubs, urban development, 
reserved lane public transport networks for buses and 

tramways, recreational facilities, environmental projects 
and with civil engineering and building operations in 
certain regions. It also carries out upstream activities 
which involve the production and recycling of 
construction materials through its tight-knit network of 
production sites. 

Total sales amounted to € 8,734 million in 2012, which 
represents 67% of the Group total. 

Specialized business activities 

This division includes various lines of business: 

Waterproofing consists of the production of impervious 
membranes, and work involving roofing, siding, 
cladding, waterproofing of buildings, sidewalks and 
roadways with mastic asphalt. The business has resisted 
well, down 2% from 2011 at €652 million, despite 
the fall in construction in France and poor weather 
conditions during the first half year. 

The Railways division is dedicated to the construction, 
renewal and maintenance of railway networks. 
During 2012, it showed a 10% increase in revenue 
(€652 million), mainly outside France, with significant 
continued work on line 2 of the Los Teques metro in 
Venezuela and the extension of the Kelana Jaya light 
metro line in Malaysia. 

Sales of refined products increased by 28% to € 431 
million, in the wake of price hikes on reduced crude oil 

Colas, considered as an international 
construction group, increased its 
revenue and market capitalisation by 
5% and 14% during 2012 

that is used as a raw material. 

Road Safety and Signaling specializes in the 
manufacture, installation and maintenance of road 
equipment. Revenue remained virtually stable compared 
to 2011, at €349 million with unchanged scope of 
business and identical exchange rates. 

The Pipelines sector is responsible for the installation 
and maintenance of pipelines for fluids. In 2012 revenue 
was down 12% at € 207 million, due to a lack of large 
pipeline projects. 


The Group’s total order book amounted to € 6,700 
million at the end of 2012. Net attributable income 
fell by 10% in 2012 to € 302 million. The net profit 
figures were lower than they were in 2011, when profits 
soared, but they are still much higher than in 2010. 
2012 was a tough year, mainly in the United States, 
with a drop in profitability due to less favourable than 
expected market conditions. 

Key Data 2012 2011 2010 
Variation 
% 
Assets 
1,955

Non-current assets 3,860 3,881 3,704 (0.5%) 
Current assets 4,465 4,374 3,972 2.1% 

Sales by geographical area 


1,174 

2,607 


7,300 

Total assets 8,325 8,255 7,676 0.8% 

Liabilities and shareholders' equity 
Shareholders' equity 2,544 2,528 2,375 0.6% France North America 
Non-Current liabilities 1,174 1,102 1,045 6.5% Rest of Europe Other Countries 
Current liabilities 4,607 4,625 4,256 (0.4%) 
Total liabilities and shareholders' 
equity 
8,325 8,255 7,676 0.8% 

Income statement Sales by segment
Sales 13,036 12,412 11,661 5.0%

1,042

National Sales 7,300 7,250 6,297 0.7% 
International Sales 5,736 5,162 5,364 11.1%652 
Construction Sales 10,690 9,681 9,445 10.4%


652 

Non construction Sales 2,346 2,731 2,216 (14.1%) 
EBITDA 972 1,041 1,008 (6.6%) 
EBIT 406 466 313 (12.9%) 
Net income 310 341 223 (9.1%) 

1,956 

Net income atributable to the Group 302 336 224 (10.1%) 


Other Key Data 
Net debt 170 (28) 57 (707,1%) 

8,734 

Order book 6,704 6,472 6,141 3.6% 
Market capitalisation * 3,820 3,360 4,730 13.7% 

* 2010 market capitalisation refers to may 2011 
Road Construction 

Railways 

Construction materials 

Other activities 

Waterproofing 

EPoC 2012 European powers of construction 49 


Strabag SE 



Strabag SE, incorporated in 1835, has become one of 
the Top 10 listed European construction groups with 
more than 74,000 employees worldwide. Austria and 
Germany are its core markets, and the Group is present 
via numerous subsidiaries throughout Eastern and 
Southeastern Europe, in selected Western European 
markets and in individual cases in other continents. 

Total revenue amounted to € 12,983 million in 2012. 
In spite of the decrease in public-sector infrastructure 
investment, output volume, which fell by only 2%, 
remained essentially the same as the high level attained 
in 2011. Total sales originate mainly in Europe, with 
55% of them located in Germany and Austria. 

Strabag SE’s main shareholders are the Haselsteiner 
family (29.21%), Rasperia Trading (17.60%), Raiffeisen 
Group (15.31%) and Uniqa Group (14.88%). During 
2012, the Company acquired treasury shares equivalent 
to about 9.57% of share capital. The free float accounts 
for the remaining 13.42% of the share capital. 

The Group restructured its operating segments in 
2012. The Building Construction & Civil Engineering, 
Transportation Infrastructures and Special Division & 
Concessions operating segments that we analyzed 
in our EPoC 2011 were replaced by the new North + 
West, South + East and International + Special Divisions 
operating segments. 

Considered as an international 
construction group, the Austrian group 
obtained margins below average and its 
indebtedness level is almost zero as of 
December, 2012 

North + West 

The North + West segment executes construction 
services of varying types and sizes with a focus 
on Germany – Strabag’s largest national market – 
and including Poland, the Benelux countries and 
Scandinavia. Ground and hydraulic engineering as 
well as offshore wind operations also belong to this 
segment. 

Total revenue amounted to € 5,510 million, 8% lower 
than in 2011. Good levels of demand in the German 
building construction and civil engineering business, and 
the expansion in Northern Europe were unable to fully 
offset the significant decline in Poland that followed the 
end of the construction boom in that country. 

This segment is the most significant of all, contributing 
44% of total sales. 

South + East 

This division comprises the railway structures and 
construction activities in Austria, Switzerland, Hungary, 
Czech Republic, Slovakia, the Adriatic, the Rest of 
Europe, and Russia and neighboring countries, and 
environmental technology. 

Total sales were 3% lower than 2011, at € 4,756 
million. The result of working off several large contracts 
in the transportation infrastructures business in Romania 
balanced out the declines in the activity of Czech 
Republic and Switzerland. 

International + Special Divisions 

The International + Special Divisions segment includes 
international construction activities, tunneling, services, 
real estate development, infrastructure development 
and the construction materials business. Concessions 
represent an important area of the business, with 
global project development activities in transportation 
infrastructures in particular. 


Total sales improved slightly (2%) to € 2,925 million in 
2012. Germany (specifically Property & Facility Services) 
continued to generate the most significant portion of 
output volume, followed by the non-European markets. 

The Group’s order book remained stable compared to 
2012, at € 13,203 million. The order book was divided 
up as follows: North + West € 4,827 million, South + 
East € 4,326 million and International + Special Divisions 
€ 4,038 million. 

2012 net attributable income amounted to € 61 
million, a 69% decrease on 2011. Most of this decline is 
explained by non-recurrent items as well as construction 
site losses arising from the completion of construction 
projects in 2012. 

Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 4,547 4,534 4,345 0.3% 
Current assets 5,591 5,852 6,037 (4.5%) 
Total assets 10,138 10,386 10,382 (2.4%) 

Liabilities and shareholders' equity 
Shareholders' equity 3,163 3,150 3,232 0.4% 
Non-Current liabilities 2,432 2,359 2,364 3.1% 
Current liabilities 4,543 4,877 4,786 (6.8%) 
Total liabilities and shareholders' 
equity 
10,138 10,386 10,382 (2.4%) 

Income statement 
Sales 12,983 14,326 12,777 (9.4%) 
National Sales 2,278 1,985 1,907 14.8% 
International Sales 10,705 12,341 10,870 (13.3%) 
Construction Sales 12,983 14,158 12,777 (8.3%) 
Non construction Sales -168 -(100.0%) 
EBITDA 608 746 735 (18.5%) 
EBIT 207 335 299 (38.2%) 
Net income 110 239 188 (54.0%) 
Net income atributable to the Group 61 195 175 (68.7%) 

Other Key Data 
Net debt 155 (268) (669) (157.8%) 
Order book 13,203 13,354 14,739 (1.1%) 
Market capitalisation * 2,328 2,515 2,516 (16.5%) 

* 2010 market capitalisation refers to may 2011 
Sales by geographical area

554 


5,687 


4,464 


2,278


Germany 


Rest of Europe 


Austria 


Rest of World 


Sales by segment 


20 

2,661 


5,510 

4,792

 North + West 

International + Special Divisions 

South + East 

Other activities 

EPoC 2012 European powers of construction 51 


FCC 


FCC showed significant losses in 2012, 
mainly due to its Austrian subsidiary 
Alpine, restructuring costs and 
write-offs 


FCC was founded in 1992 following the merger of 
two companies: Construcciones y Contratas (1944) 
and Fomento de Obras y Construcciones (1900). The 
Group has over 85,000 employees and operates mainly 
in Europe and America. The international business 
represented approximately 56% of the Group’s turnover 
in 2012. 

At December 31, 2012, FCC’s most significant 
shareholder was Esther Koplowitz, through the 
Company “B-1998, S.L.”, which controls 53.8% of the 
Group. 

With revenues exceeding € 11,150 million, the Group’s 
activities include environmental services and water 
management, construction of large infrastructure, 
cement production and renewable energy production. 
In Spain, revenue fell by 12.6% due to the scenario 
of lower government expenditure and the impact of 
these policies in the Construction and Cement sectors. 
Revenues from outside Spain were affected by the 
implementation in the second half of the year of the 
plan to exit specific construction markets, mainly in 
Eastern Europe. 

In addition, the FCC Group operates in the real estate 
sector through its 30.19% interest in Realia Business, 
S.A., whose main business is the development of 
housing and the office rental market. The Group 
operates in the concession sector through its 50% stake 
in Globalvia Infraestructuras, S.A. 


Environmental Services 

This business line provides services related to urban 
sanitation, industrial waste treatment, energy recovery 
from waste and the water cycle. It represents 34% of 
the Group’s total revenue. 

In 2012, sales grew by 2% to € 3,822 million, driven 
by the notable increase in activity outside Spain, where 
revenues expanded by 10.6% due to the construction 
of a new waste treatment plant in Lincolnshire (UK) 
and the increase in the activity of its incineration plant 
in Allington (UK). However, the Environment unit in 
Spain reflects the adjustments to the services provided 
to certain clients in order to adapt to their financial 
situation. 

Versia 

Versia includes the other services provided by the Group, 
such as logistics, urban furniture, maintenance and 
traffic systems. 

Total segment revenue fell by 26% to € 570 million in 
2012, due to the decline in business in Spain and to the 
divestment of the on-street parking business (EYSSA) 
in December 2011 and of the handling business in the 
third quarter of 2012. 

Construction 

The Construction sector specializes in infrastructure 
works, edification and related sectors such as highways, 
roads and airports. 

Revenue from the Construction area amounted to € 
6,148 million in 2012, down 8% on 2011, due to the 
16% decline in activity in Spain, together with the 
gradual withdrawal from certain markets in Eastern 
Europe. Overall, international revenues fell by 3.8%. 
In 2012, 55% of total sales were attributable to this 
division 

Cement 

The Cement division is responsible for the operation of 
quarries and mineral deposits and the manufacture of 
cement, lime, plaster and precast products. 


Revenue from this area totaled € 654 million in 2012, 
a year-on-year increase of 7%. In Spain, the decline 
in revenues reflects the reduction in domestic cement 
consumption during the year, mainly due to reduced 
investment in civil engineering. 

The Group’s total backlog, amounting to € 33,576 
million, guarantees the continuation of a high level 
of activity over the coming years. The Environmental 
Services backlog accounted for € 24,981 million and 
the Construction division backlog amounted to € 8,595 
million. 

FCC had a difficult year in 2012, with a net attributable 
loss of € 1,028 million, mainly due to the losses of its 
Austrian construction subsidiary Alpine, the write off of 
goodwill regarding certain activities and restructuring 
costs. 

Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 10,578 11,074 13,394 (4.5%) 
Current assets 9,129 11,373 8,585 (19.7%) 
Total assets 19,707 22,447 21,979 (12.2%) 

Liabilities and shareholders' equity 
Shareholders' equity 1,721 2,915 3,206 (41.0%) 
Non-Current liabilities 7,547 7,535 10,963 0.2% 
Current liabilities 10,439 11,997 7,810 (13.0%) 
Total liabilities and shareholders' 
equity 
19,707 22,447 21,979 (12.2%) 

Income statement 
Sales 11,152 11,755 12,114 (5.1%) 
National Sales 4,886 5,591 6,541 (12.6%) 
International Sales 6,266 6,164 5,573 1.7% 
Construction Sales 6,148 6,686 6,694 (8.0%) 
Non construction Sales 5,004 5,069 5,420 (1.3%) 
EBITDA 753 1,252 1,435 (39.9%) 
EBIT (403) 401 774 (200.5%) 
Net income (1,092) 3 314 (36500.0%) 
Net income atributable to the Group (1,028) 108 301 (1051.9%) 

Other Key Data 
Net debt 7,088 6,277 7,749 12.9% 
Order book 33,576 35,238 35,309 (4.7%) 
Market capitalisation * 1,193 2,551 2,931 (53.2%) 

* 2010 market capitalisation refers to may 2011 
Sales by geographical area 


4,886

904 

1,066 

591 
1,477 
2,228 


Spain 

United Kingdom 

Austria and Germany 

Rest of Europe 

America and Others

Eastern Europe 

Sales by segment

 (42)
654

 3,822

 6,148 


570


Environmental Services 
Cement 
Versia 
Eliminations 
Construction 


EPoC 2012 European powers of construction 53 


Bilfinger SE 



Bilfinger SE is completing its 
transformation into an engineering 
and services group. Since 2010 its 
diversification level has been increased 
by 6 percentage points approximately 

Bilfinger SE’s history dates back to 1880, until last 
decade, Bilfinger used to be a pure construction 
group. Nowadays, Bilfinger is an internationally active 
engineering and services company with a leading 
position in its markets. The Group’s sales amounted to 
€ 8,509 million in 2012 and the number of employees 
totaled nearly 67,000, with a presence in five 
continents. 

The main shareholders are European institutional 
investors, most notably several German investors with 
a 25% interest, Swiss investors with a 22% interest and 
several British investors with a 19% interest. 

The Bilfinger SE Group's portfolio comprises the 
following divisions: 

Industrial Services 

The Group’s Industrial Division is basically present in 
Europe and the US, and it is starting to settle in Asia. 

The division’s total sales grew by 12.4% to € 3,711 
million, while EBIT rose 15% to € 173 million. The 
strong growth of this segment was primarily achieved 
through acquisitions. This segment generated 44% 
of the Group’s total sales in 2012. With a share of 
84%, the most important markets included European 
countries especially Germany, Scandinavia, the Benelux 
countries, the United Kingdom, Austria and Eastern 
Europe. Approximately 13% of sales were generated in 
the American market. 

Power Services 

Bilfinger Power Services is focused on the maintenance, 
repair, efficiency enhancements and lifetime extensions 
of existing plants as well as the manufacture and 
assembly of components for power plant construction. 

Power Services sales and EBIT increased by 14% and 
27% in 2012, reaching € 1,316 million and € 117 
million, respectively. Business in Germany accounted 
for 37% of output volume, while 33% of sales were 
generated in European countries other than Germany, 
especially Finland and Poland. South Africa, the Persian 
Gulf region and Israel are also important international 
markets. 

Building and facility services 

The Building and Facility Services business segment 
includes technical, commercial and infrastructure 
and real estate services in Europe, the US and MENA 
countries as well as business construction in Germany. 

Building design, construction, maintenance and 
management are carried out in accordance with the 
lifecycle approach. 

In 2012 total revenue remained stable with respect 
to 2011, at € 2,152 million. With more than 15,000 
employees, this segment generates 64% of its total 
output in Germany, 17% in other European countries, 
10% in Africa, and 9% in other regions. 

Construction 

Key areas include road construction (including bridge 
construction), hydraulic engineering, pre-stressing 
technology, steel construction and foundation 
engineering. Civil engineering activities are centered on 
Germany and other European countries. 

In 2012, total construction revenues and EBIT decreased 
by 18.7% and 45% to € 1,181 million and € 24 million, 
respectively. Earnings in the infrastructure area fell below 
expectations, while improvements were achieved in 
margins in other areas. Germany represents the most 
significant market for this business, with 46% of total 
output, followed by other European countries and Asia, 
47% and 6%, respectively. 


The Group’s order book fell by 5.3% to € 7,422 million Sales by geographical areaat December 2012 (Industrial Services 36.8%, Power 
Services 17.7%, Building and Facility Services 28.9% and 476 


380

Construction 16.6%). 

762

In 2012, net attributable income fell by 30% while 
net profit from continuing operations grew by 25% to 


3,199

€ 275 million. The previous year’s net profit included 
extraordinary items such as the capital gain from the 
sale of Valemus Australia. 

Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 3,519 3,091 4,460 13.9% 

Current assets 3,331 4,629 3,477 (28.0%) 

Total assets 6,850 7,720 7,937 (11.3%) 

Liabilities and shareholders' equity 
Shareholders' equity 2,037 1,793 1,812 13.6% 
Non-Current liabilities 1,748 1,159 2,511 50.8% 
Current liabilities 3,065 4,768 3,614 (35.7%) 
Total liabilities and shareholders' 
equity 
6,850 7,720 7,937 (11.3%) 

Income statement 
Sales 8,509 8,209 7,954 3.7% 
National Sales 3,199 3,265 3,202 (2.0%) 
International Sales 5,310 4,944 4,752 7.4% 
Construction Sales 3,322 3,613 3,544 (8.1%) 
Non construction Sales 5,187 4,596 4,410 12.9% 
EBITDA 603 521 511 15.7% 
EBIT 415 361 343 15.0% 
Net income 277 396 286 (30.1%) 
Net income atributable to the Group 275 394 284 (30.2%) 

Other Key Data 
Net debt 94 (313) 48 (130.0%) 
Order book 7,422 7,833 8,497 (5.2%) 
Market capitalisation * 3,360 3,032 2,909 10.8% 

* 2010 market capitalisation refers to may 2011 
3,692

Germany 


Africa 


Rest of Europe 


Asia 


America 


Sales by segment

220

 3,655

 2,152 

1,170 
1,312


Industrial Services Construction 
Power Services Other activities 
Building and Facility Services 

EPoC 2012 European powers of construction 55 


Ferrovial 



Sixty years after incorporation, Ferrovial has become 
the world's leading private investor in transportation 
infrastructure, with a workforce of approximately 
57,000 employees and a presence in more than 15 
countries. 

The only shareholder who controls more than 10% of 
the Group is Portman Baela, S.L. (controlled by the Del 
Pino family) which held 43.61% of the Group’s shares at 
December 31, 2012. 

Ferrovial manages key infrastructure assets such as 
Canada's 407ETR highway and London's Heathrow 
Airport (both of which are consolidated by the equity 
method). Other significant transportation infrastructures 
managed by the Group are the Chicago Skyway and 
other motorways in the domestic market and in Europe. 

Total Group sales rose by 3.2% to € 7,686 million in 
2012, basically due to the good performance of its 
international business. 

Ferrovial's activities are divided into four business lines: 

Services 

The infrastructure maintenance area in Spain and 
Portugal is headed by Ferroser. In the UK, Amey is also 
one of the main providers of public and maintenance 
services for infrastructure. Cespa in Spain is present in 
the waste management and treatment plant activities. 

Total division sales increased by 4.6% to € 2,951 million 
in 2012. The increase in sales was due to the growth in 
the UK (+8.3%), which offset the decline in the Spanish 
market (-5.0%) as a result of the current economic 
situation. This segment represents 38% of the Group’s 
total revenues. 

Ferrovial’s sales and operating results 
increased over 2011, although net 
income decreased due to lower 
non-recurring profits 

Construction 

Ferrovial Agroman is the flagship company in the 
Construction division and is involved in all areas of 
construction, including civil engineering and building, in 
Spain and abroad. 

Ferrovial has been a pioneer in the expansion of Spanish 
construction companies into stable international markets 
such as Poland or the United States (Texas) where it has 
established a solid presence. Additionally, the Company 
submits bids for contracts for large international projects 
in stable markets, mainly in the United States, UK, 
Canada, Western Europe and Latin America. 

Total construction sales increased by 2% compared to 
2011 and amounted to € 4,326 million in 2012. Overall 
performance in 2012 was stable, with the significant 
fall in activity in Spain offset by the strong international 
growth in the segment. 

Airports 

The youngest Group division covers all the airport 
operations and management activities. The Group 
activity in this segment corresponds to its stake in HAH 
(formerly BAA and consolidated as an equity subsidiary 
since 2011). 

In 2012, the division announced two divestments. In 
August, 10.62% of HAH was sold to Qatar Holding for 
€ 607 million, while in October an additional 5.72% was 
sold to CIC International for € 319 million. 

Passenger traffic showed a modest change in 2012 with 
0.5% growth. The increase in traffic levels is generated 
mainly by Heathrow, which achieved record levels of 
activity with 70 million passengers. 

Highways 

Ferrovial Group, through its subsidiary Cintra, is one of 
the most important private toll road developers in the 
world. The Group operates infrastructure in countries 
such as Spain, Canada and the United States. 

Toll road revenues in 2012 decreased by 3% to € 
381 million mainly due to the decrease in traffic on 
the Spanish concessions and to certain non recurring 


payments from the grantors that were not maintained 
in 2012. However, highways as Azores (Portugal), which 
came into operation in December 2011, and SH-130 
(Texas, USA), which came into operation in November 
2012, contribute to sales and EBITDA positively. 

The Group’s order book remained similar to 2011, 
standing at €21,483 million. It is made up of Services (€ 
12,784 million) and Construction (€ 8,699 million, 70% 
of which was obtained abroad). 

2012 net attributable income amounted to € 710 
million, down 43% on 2011, mainly due to lower 
non-recurring profits in 2012. 2011 saw significant 
capital gains arising from the sale of the handling 
activities (Swissport) and the gain on the partial sale and 
deconsolidation of BAA. 

Key Data 2012 2011 
2010 
(**) 
Variation 
% 
Assets 
Non-current assets 16,637 17,517 35,465 (5.0%) 
Current assets 5,580 5,455 7,822 2.3% 
Total assets 22,217 22,972 43,287 (3.3%) 

Liabilities and shareholders' equity 
Shareholders' equity 6,118 6,288 6,824 (2.7%) 
Non-Current liabilities 11,117 11,107 28,596 0.1% 
Current liabilities 4,982 5,577 7,867 (10.7%) 
Total liabilities and shareholders' 
equity 
22,217 22,972 43,287 (3.3%) 

Income statement 
Sales 7,686 7,446 12,169 3.2% 
National Sales 2,903 3,369 3,765 (13.8%) 
International Sales 4,783 4,077 8,404 17.3% 
Construction Sales 4,326 4,244 4,525 1.9% 
Non construction Sales 3,360 3,202 7,644 4.9% 
EBITDA 927 819 2,514 13.2% 
EBIT 708 627 1,514 12.9% 
Net income 646 1,268 1,815 (49.1%) 
Net income atributable to the Group 710 1,269 2,163 (44.1%) 

Other Key Data 
Net debt 5,106 5,171 19,789 (1.3%) 
Order book 21,483 22,422 22,189 (4.2%) 
Market capitalisation * 8,215 6,840 6,951 20.1% 

* 2010 market capitalisation refers to may 2011 
** 2010 figures include BAA 
Sales by geographical area 


304

2,903

1,095

 1,460 
1,924 


Spain 

Poland 

United Kingdom 

Other countries 

The United States 

Sales by segment

 28

381

 
2,951 


4,326 


Highways

Services 


Construction 


Others 


EPoC 2012 European powers of construction 57 


BAM Group 



Almost 150 years after its incorporation, BAM Group 
has become the leading Dutch constructor, with overall 
sales of € 7,404 million in 2012. 

Three institutional investors and one private investor 
hold ownership interests of 5% or more in the Group. 

A. Van Herk controls 10%, ING Groep NV 9.8%, Delta 
Lloyd (Aviva Plc.) 5.6%, Delta Lloyd Deelnemingen Fonds 
N.V. 5.2%, and Governance for Owners Llp. 5.0%. 
BAM´s 2012 net losses amounted to € 187 million, 
mainly as a result of the write-offs recorded regarding 
certain assets of its real estate business. 

Construction 

BAM Group is active in the construction, mechanical 
and electrical services sector in the Dutch, Belgian, 
British, Irish and German markets. In addition to carrying 
out non-residential construction work in all these 
domestic markets, BAM operating companies also carry 
out residential construction contracts (mainly in the 
Netherlands, Belgium and Germany). BAM International 
also carries out non-residential construction projects 
outside its domestic market particularly in the Middle 
East and Indonesia. 

BAM Utiliteitsbouw and BAM Woningbouw are 
the Group’s flagship companies in the construction 
segment. BAM Utiliteitsbouw, with approximately 1,550 
employees and 100 projects, focuses on commercial 
and technical development and construction of 
non-residential projects in the Netherlands, as well as 
the maintenance and management of these projects. 
BAM Woningbouw, market leader in the Netherlands, 
employs a workforce of 1,450 employees to carry out 
40 consultancy, development, construction, renovations, 
service and maintenance projects. 

Construction sales remained at similar levels to 2011 and 
amounted to € 3,336 million due to the adverse market 
conditions. Operating revenue in Construction fell, in 
particular in the Dutch and German non-residential 
market. There was an increase in operating revenues in 
the United Kingdom. 

Property Investments 

Total revenue of the Dutch property business fell by 19% 
to € 548 million. Conditions in the Dutch residential 
housing and commercial property markets continued to 
worsen during the year. 

In 2012, BAM developed and sold 1,906 homes in the 
Netherlands. 

The Dutch group obtained more than 
50% outside its national borders and 
showed losses in 2012 mainly due to its 
Real Estate business 

Civil Engineering 

BAM Group operates in the Dutch, Belgian, British, Irish 
and German civil engineering markets. Although the 
volume of new business in the civil engineering market 
remains fairly stable, prices are under pressure due to 
fierce competition. 

Civil Engineering sales amounted to € 3,760 million in 
2012, representing a decrease of approximately 2%. 
The Civil Engineering sector recorded a sharp decrease 
in operating revenue compared with 2011, owing to 
the completion of a number of large projects in 2012. 
Revenues were down in the Netherlands, the United 
Kingdom and Belgium, higher in Germany and stable in 
Ireland. 


Rest of business Sales by geographical area 


The Group has 36 PPP contracts in its portfolio, 29 of 

349

which are managed by BAM PPP; the remaining seven 
contracts involve a very limited amount of shareholders’ 
equity. 

The Group’s order book increased by 5.8% to € 11,000 
million in 2012. The Construction and Civil Engineering 
divisions accounted for 37% and 47% of the Group’s 883 
total order book. 

BAM´s 2012 net losses amounted to € 187 million, 
mainly as a result of the write-offs recorded regarding 
certain assets of its real estate business. 

3,199 
247 
2,042 
684 
Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 2,334 2,229 2,560 4.7% 
Current assets 4,330 4,989 4,574 (13.2%) 
Total assets 6,664 7,218 7,134 (7.7%) 

Liabilities and shareholders' equity 
Shareholders' equity 924 1,163 1,102 (20.6%) 
Non-Current liabilities 1,800 2,460 2,316 (26.8%) 
Current liabilities 3,940 3,595 3,716 9.6% 
Total liabilities and shareholders' 
equity 
6,664 7,218 7,134 (7.7%) 

Income statement 
)Sales 7,404 7,920 7,611 (6.5% 
National Sales 3,199 3,654 3,397 (12.5%) 
International Sales 4,205 4,266 4,214 (1.4%) 
Construction Sales 6,960 7,643 7,225 (8.9%) 
Non construction Sales 444 277 386 60.4% 
EBITDA (204) 257 206 (179.4%) 
EBIT (293) 151 -30 (294.0%) 
Net income (187) 128 18 (246.1%) 
Net income atributable to the Group (187) 126 15 (248.4%) 

Other Key Data 
Net debt 1,138 1,178 1,357 (3.4%) 
Order book 11,000 10,400 12,100 5.8% 
Market capitalisation * 779 759 1,261 2.7% 

* 2010 market capitalisation refers to may 2011 
Netherlands 
United Kingdom 
Belgium 
Germany 
Ireland 
Other countries 
Sales by segment444 



3,036

 3,406 


518 


Construction 


Civil Engineering 


Property Investments 


Other activities 


EPoC 2012 European powers of construction 59 


Acciona 


Acciona sales grew by 6% in 2012, 
primarily due to its international and 
energy businesses 


Acciona is one of the leading Spanish business 
corporations, particularly in the development and 
management of infrastructure, renewable energy, water 

and services. The Company, which was set up in 1916, 
employs more than 32,000 people, has a presence in all 
five continents and increased its total sales by 5.6% in 
2012 to € 7,016 million. 

In 2012, two shareholders held a significant ownership 
interest in the company: Tussen de Grachten, BV 
(27.8%) and Entreazca, BV (27.43%). Both shareholders 
belong to the Entrecanales family (founders of the 
Group). 

Acciona is structured as follows: 

Infrastructure 

Acciona Infrastructure is the longest-standing company 
in the Acciona Group and carries on its activities along 
two main lines of business: public works and building. 
The division’s total sales decreased by 5.6% to € 
3,326 million, negatively impacted by the declining 
construction business in Spain. 

The concessions business increased its EBITDA by 
14.1%, despite the sale of two mature concessions in 
Chile in the second quarter of 2011 and the University 
of San Luis Potosi in Mexico in the third quarter of 2012. 

This segment represents 47% of the Group’s total sales. 

Real State 

Acciona Real Estate is a leading housing developer with 
activities on two main business areas: Residential and 
Real Estate Assets. 

The segment’s total revenue fell by 34% to € 68 
million compared to 2011. This is mainly due to the 
lower number of homes sold in Spain as well as a 
lower contribution from the international residential 
development business. 

Energy 

Acciona Energy is the global renewables operator 
present in most clean technologies and countries. Its 
mission is to demonstrate the technical and economic 
feasibility of a new energy model based on sustainability 
criteria. 

Total revenues increased by 28% to € 2,107 million 
mainly due to the division’s organic growth. 

Water and Environmental & Urban Services 

The water business line is headed by Acciona Agua, 
which focuses on water treatment and reverse osmosis 
desalination. It offers a full range of services in the 
integral water cycle. 

The Environmental and Urban Services line of business 
brings together a broad range of services related to 
urban cleaning, security, maintenance of facilities and 
parks and gardens. 

Sales of Water and Environmental & Urban Services 
performed positively and increased by 17% to € 815 
million. 

Logistics & Transport Services 

This line of business is focused on land and sea 
transportation of passengers and goods, and operates 
through companies such as Acciona Trasmediterránea. 

In 2012, Acciona Logistic & Transport Services revenues 
remained constant with respect to 2011, at € 706 
million. 

Other business 

As part of its diversification strategy, Acciona has 
developed other lines of business in order to move 
into new markets, including financial services through 
Bestinver; the production of top quality wines 
through Hijos de Antonio Barceló; and the design and 
development of exhibitions through GPD. 


The Group’s order book increased by 60.4% to € 18,092 
million in 2012. By segment, the construction order 
book amounted to € 6,766 million and the water order 
book to € 11,326 million. The main increase in the order 
book is explained by the fact that in late 2012 Acciona 
and the Brazilian investment bank BTG Pactual were 
awarded the concession for Aigües Ter Llobregat, the 
company that manages the upstream water supply for 
Barcelona (northeastern Spain), the city's metropolitan 
area and nine nearby districts. 

Acciona achieved € 189 million of net attributable 
income in 2012, down 6% on 2011, due to lower 
extraordinary gains and to the difficult situation of the 
Spanish construction industry. 

Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 13,971 14,020 13,615 (0.3%) 
Current assets 5,848 6,307 6,887 (7.3%) 
Total assets 19,819 20,327 20,502 (2.5%) 

Liabilities and shareholders' equity 
Shareholders' equity 5,508 5,645 6,063 (2.4%) 
Non-Current liabilities 8,871 8,785 7,039 1.0% 
Current liabilities 5,440 5,897 7,400 (7.7%) 
Total liabilities and shareholders' 
equity 
19,819 20,327 20,502 (2.5%) 

Income statement 
Sales 7,016 6,646 6,263 5.6% 
National Sales 4,051 4,308 4,334 (6.0%) 
International Sales 2,965 2,338 1,929 26.8% 
Construction Sales 3,394 3,626 3,325 (6.4%) 
Non construction Sales 3,622 3,020 2,938 19.9% 
EBITDA 1,431 1,312 1,211 9.1% 
EBIT 646 632 527 2.2% 
Net income 184 170 184 8.2% 
Net income atributable to the Group 189 202 167 (6.4%) 

Other Key Data 
Net debt 7,482 6,991 6,587 7.0% 
Order book 18,092 11,280 12,070 60.4% 
Market capitalisation * 3,219 4,241 4,667 (24.1%) 

* 2010 market capitalisation refers to may 2011 
Sales by geographical area

616

1,309 



4,051 


1,040 


Spain 


Rest of OECD countries 


Rest of European Union 


Other countries 


Sales by segment

(6)
706 

2,107 
815 
68 


3,326 

Infrastructure Water and Environmental & Urban Services 
Real Estate Logistic & Transport Services 
Energy Other activities 

EPoC 2012 European powers of construction 61 


NCC 



The NCC Group was legally formed on January 1, 1989. 
However, JCC and ABV have been under a single roof 
and sharing a logo since October 15, 1988. 

The Group is one of the leading construction and 
property development companies in the Nordic region 
with a workforce of over 18,000 employees. Total sales 
have increased by 13% since 2011 to € 6,575 million. 

At December 31, 2012, Nordstjernan AB was the largest 
individual shareholder, with 23% of the share capital 
and 66% of the voting rights. 

NCC operates mainly in Europe. Approximately 55% 
of the year's sales came from operations carried out in 
Sweden. NCC mainly builds housing on a proprietary 
basis In the Baltic region and single-family housing in 
Germany. 

The Group is structured as follows: 

Construction and civil engineering 

Divided into four business areas (NCC Construction 
Sweden, NCC Construction Denmark, NCC Construction 
Finland and NCC Construction Norway) this segment 
specializes in the building of residential and office 
properties, other buildings, industrial facilities, roads 
and civil engineering structures. This division made 
most progress in the Norwegian market, in part through 
acquisitions. In Finland, a build-up of civil engineering 
operations is under way. 

The Swedish group is one of the eight 
EPoC that have increased their net 
attributable income during 2012 

Construction sales grew 9.5% to € 3,960 million. 
Centered on the Swedish market, this segment 
represents 60% of the Group’s total sales. 

Road Business 

The segment’s business activity consists of the 
production of aggregates, asphalt, paving and road 
services. NCC delivers aggregates and asphalts 
for numerous applications, ranging from major 
infrastructure projects to small roads. 

In 2012, the division’s total sales grew by 7.3% to 
€ 1,305 million due to high sales of aggregates and 
asphalts. The main markets are concentrated in the 
Nordic countries, where NCC has been the leading 
player in the industry in 2012. Sweden is the largest 
single market, representing 49% of the segment’s total 
sales. Asphalt and paving operations are conducted in 
the St. Petersburg area, too. 

Housing 

As a result of its presence in eight geographical markets, 
NCC is the leading housing developer in Northern 
Europe. 

In 2012, housing sales grew by 18.5% to € 989 million 
due to the handover of a large number of completed 
properties to private customers. Sweden is the largest 
market in this segment with 29% of sales. 

Property Development 

NCC Property Development, focusing on office, retail 
and logistics properties, develops and sells commercial 
property in defined growth markets in the Nordic 
region, Estonia and Latvia. 

The division’s total sales increased by 116% to € 320 
million. In 2012, nine development projects were 
started with a total project cost of € 0.22 billion. 
Notable projects include the Östensjöveien 27 in Oslo, 
Portlandsilos office projects in Copenhagen and the 
retail project Lielahti Center in Tampere. 


The Group’s order book saw growth of 2.8% and 
amounted to € 5,341 million at December 31, 2012. 
The Construction division accounted for 72.5% of the 
total order book at year end. 

NCC´s 2012 net income amounted to € 218 million, 
a 50% increase over 2011, mainly due to the positive 
performance of NCC Housing and NCC Property 
Development. 

Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 829 730 640 13.5% 
Current assets 3,711 2,964 2,828 25.2% 
Total assets 4,540 3,694 3,468 22.9% 

Liabilities and shareholders' equity 
Shareholders' equity 1,047 931 907 12.5% 
Non-Current liabilities 1,296 874 758 48.3% 
Current liabilities 2,197 1,889 1,803 16.3% 
Total liabilities and shareholders' 
equity 
4,540 3,694 3,468 22.9% 

Income statement 
Sales 6,575 5,818 5,182 13.0% 
National Sales 3,600 3,207 2,782 12.3% 
International Sales 2,975 2,611 2,400 13.9% 
Construction Sales 6,569 5,813 5,182 13.0% 
Non construction Sales 5 4 -21.9% 
EBITDA 292 227 236 28.6% 
EBIT 291 223 236 30.5% 
Net income 218 145 160 50.0% 
Net income atributable to the Group 218 145 160 49.8% 

Other Key Data 
Net debt 706 444 90 58.9% 
Order book 5,341 5,197 4,239 2.8% 
Market capitalisation * 1,720 1,474 1,965 16.7% 

* 2010 market capitalisation refers to may 2011 
Sales by geographical area

 266

 987

 
3,600

949

 772 

Sweden 

Norway 

Denmark 

Other Countries 

Finland 

Sales by segment

 1

320

989 


3,960

 1,305 

Construction and Civil Engineering Property Development 
Industrial Operations Other activities 
Housing 

EPoC 2012 European powers of construction 63 


Carillion 


In December 2012, the Group 
strengthened its position in Canada 
through the acquisition of a 49% 
interest in the Bouchier Group 


Carillion was created as a result of the stock split of 
Tarmac plc in 1999, when the Aggregates division of 
the combined Group was separated from the Business 
Services and Construction Units. Nowadays, Carillion Plc. 
is one of the UK’s leading integrated support services 
companies with a substantial portfolio of Public Private 
Partnership projects, extensive construction capabilities 
and a sector leading capability in delivering sustainable 
solutions, employing more than 27,400 people. 

Three institutional investors hold ownership interests of 
5% or more in Carillion. Schroder Plc. controls 9.27% 
of the Group, Standard Life Investments 6.26% and 
Templeton Global Advisors Ltd 5.22%. Another five 
institutional investors hold ownership interests ranging 
from 3% to 5%. 

In December 2012, the Group acquired a 49% interest 
in the Bouchier Group which is based in Alberta, 
Canada, and provides a range of support services, 
including road maintenance, infrastructure services and 
facilities management, primarily for customers in the oil 
sector. 

Carillion’s portfolio includes Construction works (which 
the Group subdivides into Middle East and the rest of 
the world sectors), Support Services and Public Private 
Partnership projects. 

Support Services 

Carillion is one of the UK’s largest support services 
companies providing all the services needed to manage, 
maintain and operate buildings and infrastructure, 
notably for large property estates and for transport and 
utility services networks. In this segment the Group 

includes various activities, the highlights being facilities 
management, facilities services, rail services, road 
maintenance, utility services and consultancy businesses. 

Support Services division sales grew by 8% to € 2,911 
in 2012. The Company continued to build on its leading 
positions in the highways maintenance markets in 
Ontario and Alberta, Canada, winning new contracts 
and renewing others. 

Middle East Construction Services. 

The Group has around 40 years’ experience in the 
Middle East and has delivered some of the region’s most 
prestigious buildings and infrastructure projects. 

In this segment, the Group includes building and civil 
engineering activities in the Middle East and North 
Africa. The Group is mainly present in Abu Dhabi, 
Oman, Qatar and Dubai. In 2012, Al Futtaim Carillion 
completed the Al Muneera mixed-use development in 
Abu Dhabi for ALDAR and Carillion Alawi has recently 
completed the Majlis, a magnificent new Parliament 
building in Muscat (Oman). 

Sales in this segment exceeded € 585 million in 2012, 
down 8% on the previous year. 

Construction Services (Excluding Middle East) 

Carillion has a strong and selective construction 
capability in the UK and in Canada, focused on large, 
higher added-value contracts for long-term customers. 

A significant portion of UK construction revenue comes 
from PPP projects, school building programs and 
healthcare sector activities. In Canada, the Group has 
strong construction capabilities both for buildings and 
infrastructure. 

The segment’s sales fell back by 26% to € 1,581 million 
in 2012. The most significant event in 2012 was the 
completion of The Nottingham Academy, which is one 
of some 160 schools and academies that have been, 
or are in the process of being delivered by Carillion in 
England. 

Public Private Partnership projects 

The Group is a benchmark in Public Private Partnership 
(PPP) projects, both in the UK and Canada. This business 


uses private sector finance to deliver a wide range of 
asset-based services for central and local government. 

Carillion is developing PPP projects in markets such as 
health, education, roads and defence. The total revenue 
of this segment remains stable when compared to 2011, 
and amounted to € 354 million in 2012. 

The Group’s order book remained on a similar level to 
the previous year, at €22,179 million at December 31, 
2012. The order book of the support services division 
represents 72.4% of the 2012 total. 

Net attributable income grew by 27% to € 197 
million in 2012, due to minimal non-recurring and 
non-operating costs compared to the prior year. In 
2011, significant one-off costs were incurred on the 
acquisition of CES. 

Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 2,484 2,431 1,927 2.2% 
Current assets 2,248 1,998 1,737 12.5% 
Total assets 4,732 4,429 3,664 6.8% 

Liabilities and shareholders' equity 
Shareholders' equity 1,238 1,177 1,006 5.1% 
Non-Current liabilities 2,068 2,223 591 (7.0%) 
Current liabilities 1,426 1,029 2,067 38.6% 
Total liabilities and shareholders' 
equity 
4,732 4,429 3,664 6.8% 

Income statement 
Sales 5,430 5,820 5,991 (6.7%) 
National Sales 4,006 4,222 4,476 (5.1%) 
International Sales 1,424 1,598 1,515 (10.9%) 
Construction Sales 2,169 2,761 3,169 (21.5%) 
Non construction Sales 3,261 3,059 2,822 6.6% 
EBITDA 283 321 265 (11.8%) 
EBIT 287 249 227 15.4% 
Net income 205 159 178 28.9% 
Net income atributable to the Group 197 155 171 27.2% 

Other Key Data 
Net debt 191 61 (140) 214.5% 
Order book 22,179 22,866 21,216 (3.0%) 
Market capitalisation * 1,671 1,549 1,819 7.9% 

* 2010 market capitalisation refers to may 2011 
Sales by geographical area

20 

803 

601 

4,006 


United Kingdom 

Canada 

Middle East ANS North Africa 

Other countries 

Sales by segment

 354 


1,581

 
2,911 


585 


Support Services 


Other Construction Services 


Middle East Construction 

Private Finance 


Services 


EPoC 2012 European powers of construction 65 


Peab 



Peab is one of the Nordic region’s leading construction 
and civil engineering companies. It was founded more 
than fifty years ago by two brothers and nowadays it 
has more than 14,800 employees. The Group primarily 
conducts business in Sweden, where Peab operates 
nationwide, but it also operates in Norway and Finland 
where it focuses on the capital city areas. 

Total Group sales amounted to € 5,381 million in 2012, 
which represents an increase of 11.6% with respect 
to 2011, due to both the good market situation at the 
beginning of the year and a high level of production 
throughout the year. 

The Group’s main shareholders are the Paulsson family 
and the Granlund family, which hold ownership interests 
of 15.9% and 8.1%, respectively. 

The Group is structured around the following business 
activities: 

Construction 

The Construction Business division, which is present 
in Sweden, Norway and Finland, performs contract 
work for external customers, with activities ranging 
from new construction to renovation and construction 
maintenance. 

The performance of Swedish building construction 
start-ups was weak in 2012, despite a relatively strong 
start at the beginning of the year. This is primarily due to 
the weak development in start-ups in private and public 

In spite of being considered a domestic 
construction group, Peab has increased 
its internationalisation level by 6 
percentage points since 2010 

locations during the third quarter. The division’s total 
sales increased by 4% to € 3,216 million. Construction 
activities, as the Group’s most important line of 
business, represented 60% of total sales. 

Civil Engineering 

The Civil Engineering division is the major player in 
civil engineering in Sweden, Norway and Finland. The 
business area builds and maintains roads and railroads, 
bridges and other infrastructure. The division performs 
operation and maintenance work in more than half of 
Swedish municipalities, and road maintenance in many 
operational areas. 

The division’s total sales and operating profit increased 
by 14% and 19%, respectively, to € 1,453 million and 
€ 51 million, despite the crisis scenario that Europe was 
suffering from in 2012. This is due to private-sector and 
government investments in developing and maintaining 
public infrastructure. 

Other activities 

Industry, which is the main line of business in the “Other 
Activities” division, is comprised of a large number of 
companies and brands that rent construction machines, 
cranes and electrical material and provide transportation 
and machine services. Industry also manufactures and 
lays asphalt and produces, delivers and pumps out 
ready-mixed concrete. 

The Industry division’s total sales grew by 3%, due to 
the good performance of transportation operations. 

The Group’s total order book increased by 4% to €3,269 
million. Of the total order backlog, 30% is expected to 
be executed in the coming financial year. Construction 
projects accounted for 71% of the order backlog and 
Swedish operations accounted for 87%. 

Net attributable income went down by 27% to 
€ 76 million in 2012. This reduction in profit was 
concentrated in the construction segment and was 
due to certain project write-downs in Stockholm and 
Norway. 


Key Data 2012 2011 2010 
Variation 
% 
Assets 
Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 1,140 1,218 1,077 (6.3%) 
Current assets 2,597 2,300 1,998 12.9% 
Total assets 3,737 3,518 3,075 6.2% 

Liabilities and shareholders' equity 
Shareholders' equity 930 892 855 4.3% 
Non-Current liabilities 904 921 676 (1.8%) 
Current liabilities 1,903 1,705 1,544 11.6% 
Total liabilities and shareholders' 
equity 
3,737 3,518 3,075 6.2% 

Income statement 
Sales 5,381 4,822 4,004 11.6% 
National Sales 4,284 3,978 3,435 7.7% 
International Sales 1,097 844 569 30.0% 
Construction Sales 4,668 4,377 3,439 6.6% 
Non construction Sales 713 445 565 60.2% 
EBITDA 265 256 234 3.5% 
EBIT 121 167 158 (27.3%) 
Net income 83 104 125 (19.9%) 
Net income atributable to the Group 76 104 124 (27.2%) 

Other Key Data 
Net debt 754 743 600 1.4% 
Order book 3,269 3,114 2,838 5.0% 
Market capitalisation * 1,071 1,007 1,791 6.3% 

* 2010 market capitalisation refers to may 2011 
Sales by geographical area 


4

343 


750
4,284


Sweden 


Finland 


Norway 


Other countries 


Sales by segment

895 


1,315 



3,171

Construction 
Civil Engineering 
Other activities 


EPoC 2012 European powers of construction 67 


YIT 


In 2012, YIT increased its sales and net 
attributable income by 7% and 72% 
mainly due to the performance of the 
International Construction Services 
segment 


YIT was incorporated in 1912 and nowadays is a 
leading European service company in building systems, 
construction services and services for industry. With 
nearly 25,300 employees, the Group’s revenues 
amounted to € 4,706 million in 2012, 7.4% higher than 
the previous year. The Group has a global presence 
in markets such as the Nordic countries, Russia, Baltic 
countries and Central Europe. Its core market is Finland, 
where it obtains 40% of the Group’s total revenues. 

At December 2012, the two main shareholders with 
stakes of 5% or more in the Group are two institutional 
investors: Structror, S.A. with 12.3% and Varma Mutual 
Pension Insurance Company with 7.86%. 

YIT’s business segments are as follows: 

Building Services Northern Europe and Central 
Europe 

These segments provide services such as home 
renovation and modernization, maintenance of electrical 
and automation systems, industrial plants, industrial 
processes and industrial investments in electrical, 
automation and ventilation systems, piping and tanks. 

Building Services Northern Europe’s total sales 
amounted to € 2,034 million, the same amount as the 
previous year, because new investments in building 
systems remained at a relatively low level. 

Building Services Central Europe’s total sales went 
down by 8% to € 713 million compared to 2011. 

The decrease in revenue during the year was due to 
weakening demand, especially in the market for large 
projects in Germany, the reorganization of operations in 
that country and Poland and the low level of activity in 
Central Eastern Europe. Revenue continued to increase 
clearly in Austria. 

This sector represents the 58% of the Group’s total 
revenue. 

Construction Services Finland 

The segment’s activities include, among others, 
construction of residences, maintenance of roads, 
streets and properties and property development 
projects. 

The division’s total sales grew by 8% to € 1,327 
million. Residential sales in 2012 were on a par with 
the previous year. In 2012, YIT sold a total of 1,869 
residential units directly to consumers. Demand focused 
particularly on residential units in the final stages of 
construction and completed residential units. 

International Construction Services 

This division carries out activities such as the 
construction of blocks of flats, single-family houses, 
property maintenance, construction investments, 
renovation and property development projects. 

In 2012, total international construction sales 
of increased by 24% compared to 2011 and 
amounted to €599 million. 77% of this division’s 
revenues, are generated in Russia with the focus of 
operations on residential development projects in St. 
Petersburg, Moscow and cities in the Moscow region, 
Yekaterinburg, Rostov-on-Don and Kazan. 

The Group’s order book increased by 4% to € 3,902 
million. The building services divisions and construction 
services segments accounted for approximately 30.7% 
and 69.3%, respectively, of the total order book. 

Net attributable income grew by 71% to € 196 million 
in 2012, mainly due to the good performance of the 
International Construction Services segment. 


Key Data 2012 2011 2010 
Variation 
% 
Assets 
Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 589 599 575 (1.7%) 
Current assets 3,093 2,906 2,542 6.4% 
Total assets 3,682 3,505 3,117 5.0% 

Liabilities and shareholders' equity 
Shareholders' equity 1,035 921 883 12.4% 
Non-Current liabilities 724 740 668 (2.2%) 
Current liabilities 1,923 1,844 1,566 4.3% 
Total liabilities and shareholders' 
equity 
3,682 3,505 3,117 5.0% 

Income statement 
Sales 4,706 4,382 3,788 7.4% 
National Sales 1,929 1,774 1,444 8.7% 
International Sales 2,777 2,608 2,344 6.5% 
Construction Sales 4,706 4,381 3,788 7.4% 
Non construction Sales -1 -(100.0%) 
EBITDA 304 280 256 8.6% 
EBIT 259 241 221 7.6% 
Net income 198 115 169 71.7% 
Net income atributable to the Group 196 115 168 71.2% 

Other Key Data 
Net debt 759 736 641 3.1% 
Order book 3,902 3,753 3,536 4.0% 
Market capitalisation * 1,880 1,575 2,500 19.4% 

* 2010 market capitalisation refers to may 2011 
Sales by geographical area

 287

 1,929 

738 

Finland 

Central Europe 

Sweden 

Russia 

Norway 

Other countries 

Sales by segment

33

 599 



2,747

1,327 


463 
565 
724


Building and Industrial 

International Construction 
Services 
Services 
Construction Finland 


Other activities 


EPoC 2012 European powers of construction 69 


ENKA 



ENKA’s story, characterized by uninterrupted and 
accelerated development, began in 1957. Nowadays, 
ENKA is the leading Turkish construction group with a 
significant international presence, a market capitalisation 
of € 6,301 million and more than 21,000 employees, 
mainly in Europe. In 2012 the Group’s sales amounted € 
4,473 million, up 23.6% on 2011. 

The Group’s main shareholders are Tara Holding, A.S., 
which increased its ownership interest to 49.27% in 
2012, and the Tara and Gülcelik families, who reduced 
their stake to 27.99%. 

ENKA divides its operations into four different kinds 
of business: Energy, Engineering & Construction, Real 
Estate and Trade & Manufacturing. 

Engineering & Construction 

In construction, ENKA’s engineering expertise is currently 
being employed over an ever-expanding geographical 
area. Among others, the most significant projects 
accomplished in recent years are the Rreshen-Kalimask 
Motorway (Albania), the Shakhtar Donetsk Stadium 
(Ukraine), the Toyota Car and Assembly Plant in St. 
Petersburg (Russia) and the Blue City New Town Project 
(Oman). Currently, the most significant projects under 
construction are the Transylvanian Motorway Project 
(Romania) and the Sakhalin II on-shore processing 
facility (Russia). In 2012 the revenue in this segment 
increased 48% to € 998 million. 

Energy 

ENKA's participation in energy projects dates back to 
the seventies, when Turkey decided to exploit the lignite 
coal reserves in the southwest of the country. The 
experience and skills acquired through these projects 
enabled ENKA to extend the scope of its responsibility 

in subsequent turnkey power projects, either as a 
consortium member or a joint venture partner. The 
positive performance of the market in 2012 boosted 
total sales by 21% to € 2,829 million. This segment 
represents the main contribution to revenue, providing 
63% of the company’s total sales in 2012. 

Real Estate 

ENKA’s interests in real estate development started 
with the establishment of OAO Mosenka in 1991 
to meet the increasing demand for office space in 
Moscow, and have been expanding ever since, through 
further investment. ENKA also owns ten shopping 
malls in Russia (nine located in Moscow and one in St. 
Petersburg) with a total rentable area of 226,000 m2. 

In 2012, rental sales amounted to € 343 million, an 
increase of 18% over the previous year. 

Trade & Manufacturing 

ENKA's industrial investments in this segment began 
with the establishment of the Pimas Plastic and Altas 
Steel Hand Tool Factories in the 1960s. Its subsidiaries, 
Cimtas Pipe and Cimtas Ningbo (People's Republic 
of China), both incorporated in 2002, engage in the 
manufacture of pipe spools, the provision of engineering 
services and the supply of process, power and OEM 
piping systems for the power, oil, gas and chemical 
industries. 

In 2012, Trade & Manufacturing sales decreased by 6% 
to € 303 million. 

ENKA's 2012 net attributable income reached € 490 
million, a 66% increase over 2011, mainly due to the 
positive performance of its energy business. 

During 2012 ENKA, which is ranked in fourth 
position in terms of market capitalisation, obtained 
an operating margin of over 10% 


Key Data 2012 2011 2010 
Variation 
% 
Assets 
Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 3,828 3,639 1,791 5.2% 
Current assets 2,415 2,127 3,518 13.6% 
Total assets 6,243 5,766 5,309 8.3% 

Liabilities and shareholders' equity 
Shareholders' equity 4,062 3,690 3,294 10.1% 
Non-Current liabilities 1,077 1,152 1,193 (6.5%) 
Current liabilities 1,104 924 822 19.5% 
Total liabilities and shareholders' 
equity 
6,243 5,766 5,309 8.3% 

Income statement 
Sales 4,473 3,619 3,555 23.6% 
National Sales 3,405 2,826 2,543 20.5% 
International Sales 1,068 793 1,012 34.5% 
Construction Sales 998 673 858 48.3% 
Non construction Sales 3,475 2,946 2,697 18.0% 
EBITDA 568 592 584 (4.1%) 
EBIT 485 536 505 (9.5%) 
Net income 512 303 422 69.0% 
Net income atributable to the Group 490 296 412 65.5% 

Other Key Data 
Net debt (484) (223) (2) 116.8% 
Order book N,A N/A 5,280 N.A 
Market capitalisation * 6,301 7,922 7,122 (20.5%) 

* 2010 market capitalisation refers to may 2011 
Sales by geographical area 


385

 129

 553 

3,405


Turkey 

Rest of Europe 

Russia and Kazakhstan 

Other Countries 

Sales by segment

343

 303 


998 



2,829

Energy 


Trade and manufacturing 


Construction 


Rental 


EPoC 2012 European powers of construction 71 


OHL 



OHL is the result of the merge of Obrascon, Huarte and 
Lain in 1999. It boasts one hundred years of experience 
and has significant operations in 30 countries across 
all five continents. With a workforce of around 20,000 
employees, total Group sales amounted to € 4,030 
million in 2012. 

At December 31, 2012, Inmobiliaria Espacio, S.A. was 
the only shareholder with an ownership interest higher 
than 10% (60.03%). 

At December 2012, the OHL Group also had a 10.24% 
stake in Abertis Infrastructures, a Spanish listed company 
that is the world leader in toll road management. This 
stake was increased to 18.93% in the first few months 
of 2013. 

The decrease in revenues observed in 2012 is explained 
by the divestments made during the year. In May 
2012 the Group sold the companies comprising the 
environmental division and in December 2012 the 
Group sold its concessions in Brazil and Chile to Abertis 
Infraestructuras. 

OHL is composed of the following divisions: Concession 
Infrastructures, Construction and Other Activities. 

Concession infrastructures 

The activities carried out by this division consist of 
the development, management and maintenance of 
transportation infrastructure such as motorways, ports, 
airports and railways. 

OHL Concesiones currently holds ownership interests in 
16 concessions including 11 toll road concessions with 
a total length of 848 kilometers, an airport, two ports 
and two railway concessions. In the railway sector, the 
company holds the concession on two light rail lines 
and a commuter train line in Madrid, Spain. In Mexico’s 
airport sector, the company is currently active in the 
integral management of Toluca International Airport, 
which serves the nation's capital. OHL Concesiones 
manages 2,431 berths in marinas and 80 hectares in 
commercial ports located in Spain and India. 

Total segment sales reached € 643 million due to the 
good performance of traffic levels. The decrease in 
revenues compared to 2011 is because of the sale of the 
Brazilian and Chilean concessions to Abertis. 

Construction 

This segment focuses on civil engineering works and 
selective building construction in markets such as North 
America, Mexico and Latin America, Spain and the rest 
of Europe, Middle East, Asia and the Pacific. 

This division continues to be the most significant 
business of the Group in terms of sales, since it 
represents 68% of total revenue obtained. The division’s 
total sales dropped by 4% to € 2,738 million in 2012 
due to a 31.7% reduction in activity in Spain, although 
this was partially offset by the positive performance of 
international business, especially in Central and Eastern 
Europe, the U.S. and Canada. 

Other activities 

OHL increased its net attributable 
income to € 1,005 million in 2012 due 
to the sale of its Brazilian and Chilean 
concessions 

OHL’s other revenue comes from its Industrial and 
Development Division. The industrial business is centered 
on the engineering and construction of industrial plants, 
and Development activities include works in areas of 
tourist and historical interest. 

The Other Activities division’s total revenues increased 
by 45% to €649 million due to the good performance 
of the industrial business and the land sales in the 
development division. 


The Group’s total order book fell back 34% to € 53,413 Sales by geographical area 
million. 15% of this figure relates to the short-term 
order book. At December 31, 2012, the Concession 293 
Division accounted for 84% of the Group’s total order 
book. 

216

OHL´s net attributable income climbed to € 1,005 
million in 2012 (+351%) mainly due to the extraordinary 
gain obtained on the sale of its Brazilian and Chilean 
concessions to Abertis. 

567 

506 
811 
1,338 
129 
170 
Key Data 2012 2011 2010 
Variation 
% 
Assets 
Non-current assets 8,622 8,763 8,582 (1.6%) 
Current assets 3,585 4,163 4,020 (13.9%) 
Total assets 12,207 12,926 12,602 (5.6%) 

Liabilities and shareholders' equity 
Shareholders' equity 2,721 1,978 2,025 37.6% 
Spain 

Qatar 

Peru 

Mexico 

Non-Current liabilities 6,384 6,957 6,717 (8.2%) Eastern Europe Canada 
Current liabilities 3,102 3,991 3,860 (22.3%) The United States Other countries 
Total liabilities and shareholders' 
equity 
12,207 12,926 12,602 (5.6%) 

Income statement 
Sales 4,030 4,870 4,910 (17.2%) 
National Sales 1,338 1,444 1,496 (7.3%)
Sales by segment 
International Sales 2,692 3,426 3,414 (21.4%)

 Construction Sales 2,738 2,866 3,071 (4.5%)

649 


Non construction Sales 1,292 2,004 1,839 (35.5%) 
EBITDA 1,053 1,219 1,005 (13.6%) 
EBIT 660 973 700 (32.2%) 
Net income 1,101 349 252 215.5% 
Net income atributable to the Group 1,005 223 196 350.7% 

Other Key Data 
643 


Net debt 4,198 5,109 4,420 (17.8%) 
Order book 53,413 81,352 84,307 (34.3%) 
Market capitalisation * 2,189 1,933 2,763 13.3% 

* 2010 market capitalisation refers to may 2011 
2,738 



Construction 
Concession infrastructures 
Other activities 


EPoC 2012 European powers of construction 73 


European construction 
and infrastructure group 
contacts 

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connecting 

business 

europe 

to 


ACTIVITY REPORT 

2013 



European Council of Heads of State and Government - Brussels, 7-8 February 2013 - Family photo. 
Credit: The Council of the European Union 
EU Budget: Chambers disappointed by Council deal, 
but stress it’s not final 
EUROCHAMBRES is disappointed with the compromise struck on 8 February between heads of state on 
2014 EU Budget. The 3.5% reduction in the total budget fails to reflect the additional responsibilities 
assigned to EU institutions under the Lisbon Treaty, while the split in expenditure headings betrays a lack of 
commitment from national governments to the Europe 2020 Strategy for growth and jobs. 
The EU Summit agreement is being widely referred to as ‘the final deal'. However, without the endorsement 
of the European Parliament, the deal will not be complete. The Members of the European Parliament, so 
vocal over recent days in calling for an EU Budget that contributes to competitiveness, must now use their 
considerable influence to ensure that key programmes designed to stimulate research and innovation, 
support small and medium enterprises (SMEs) and reinforce education and training are allocated the 
resources that they merit. Otherwise, Chambers fear that the real economy, comprising of real businesses, 
will be the real victims of the member states’ unedifying scramble for cash. 
Policy makers are fond of referring to SMEs as the ‘backbone of the economy’. Member states apparently 
overlooked this in their negotiations, so Chambers will work with the European Parliament over the coming 
weeks to maximise the support to Europe’s 20 million growth and job creators for the remaining seven 
years of the Europe 2020 Strategy. 
Contact: Ben Butters 
EUROCHAMBRES’ letter ahead of the 7-8 February European Council 
Companies and Entrepreneurship 
Promoting partnerships between Greek and European companies 
The European Commission and Greek Government are co-organising a business-to-business event in Athens 
on 11-12 March, the aim of which is to promote partnerships between Greek and European companies. 
Parallel matching sessions will be organised for the following sectors: agri-food/food processing, construction 
and materials/key enabling technologies, energy, ICTs, pharmaceuticals/health sciences and tourism. 
EUROCHAMBRES supports this initiative. 
February 2013 

Contact: Ben Butters Matchmaking event Athens B2B website 
Erasmus For Young Entrepreneurs: 140 partners meet in Brussels 
On 5-6 February the Erasmus for Young Entrepreneurs Network Meeting was held in Brussels, gathering 
around 140 Intermediary Organisations and the European Commission to discuss the future implementation of 
the programme. The programme is open to potential new and host entrepreneurs from all EU countries as well 
as Croatia, FYROM and Turkey. 
Contact: Ioana Florescu Press Release 9 January 
Erasmus for Young Entrepreneurs website 
Making entrepreneurship attractive to young people 
It is crucial to expose young people to the positive option of self-employment and developing creativity, initiative, 
confidence and other key entrepreneurial competences. EUROCHAMBRES thus welcomed the European 
Commission’s Entrepreneurship Action Plan, while at the same time deploring the diverse objectives of the 
Communication which may undermine the main focus on entrepreneurship education. 
Contact: Anna Szatkowska Press Release 9 January 
Top 3 most burdensome EU legislation 
In response to a European Commission’s consultation, EUROCHAMBRES highlighted the most burdensome 
EU legislative acts for small businesses, among which the top three are: the REACH regulation, the shipments 
of waste regulation and the waste framework directive. However EUROCHAMBRES is not convinced about the 
impact of this single exercise and advocates instead the establishment of an annual exercise of screening the 
acquis. 
Contact: Typhaine Beaupérin-Holvoet EUROCHAMBRES' Position 
International Relations and Trade 
Are you ready for China? 
Access to critical information is still the main issue for European companies willing to trade and invest in China. 
The EU SME Centre in Beijing thus published a Diagnostic Kit “Are you ready for China?” to help European 
business willing to enter the Chinese Market make an informed decision. Four reports introducing different 
aspects of market entry and an online questionnaire are designed to work as a step-by-step introduction to the 
Chinese business environment, allowing small businesses to gauge their preparedness in doing business in 
China. 
Contacts: Freya Lemcke Online quiz: Gauging your readiness 
Report 1: Is China on your radar? Report 2: Ways to enter the Chinese Market 
Report 3: Exporting goods, services and technology to 
the Chines market 
Report 4: Knowing your partners in China 
East Invest Advocacy Academy coming soon 
On 19-22 February the East Invest Advocacy Academy will bring to Brussels twenty-five representatives from 
various business support organisations from the six Eastern Partnership countries (Armenia, Azerbaijan, 

Belarus, Georgia, Moldova, Ukraine). They will get an insight from their European counterparts on how 
business support organisations can position themselves in the advocacy process, what it means for them and 
their members, and how to contribute constructively to the process. 
Contact: Birgit Arens ; Irina Tikhonova East Invest website 
200 businesses meet in Moldova 
On 31 January, over 200 businesses from Moldova and from neighbouring EU countries (mostly Romania) 
gathered in Chisinau for the investment conference ‘Moldova - gate for new opportunities’, debating on the 
Moldovan investment climate prior to engaging in a series of B2B meetings. Director of International Affairs 
Dirk Vantyghem opened the event together with Valeriu Lazar, Deputy Prime Minister and Minister of Economy 
of the Republic of Moldova, and Dirk Schuebel, Head of the EU Delegation to the Republic of Moldova. This 
was the first event of the kind held as part of the East Invest project. Further investment conferences are 
foreseen in the other 5 Eastern Partnership countries (Armenia, Azerbaijan, Belarus, Georgia, Ukraine) 
throughout 2013. 
Contact: Birgit Arens ; Irina Tikhonova East Invest website 
India: EBTC joins the EEN network 
The European Business and Technology Centre (EBTC) officially joined the Enterprise Europe Network (EEN) 
at the beginning of the year. Micro, small and medium sized enterprises (MSMEs) in India can now look 
forward to opportunities of collaborating with European Union countries. At the end of 2012, EBTC had 
facilitated three new cooperation agreements between Swedish and Indian companies on transferring 
technology to address challenges in cleaning soil and water. 
Contact: EBTC team in Brussels EBTC website 
Enterprise Europe Network website 
EU-Brazil Business Summit: setting out priorities to enhance bilateral economic 
cooperation 
President Alessandro Barberis officially opened the 6th EU-Brazil Business Summit on 23 January in Brasilia. 
Business organisations from both sides of the Atlantic – EUROCHAMBRES, BUSINESSEUROPE, and the 
National Confederation of Industry-Brazil (CNI) – handed over a joint declaration to European Commission 
President José Manuel Barroso, European Council President Herman Van Rompuy and Brazil President Dilma 
Rousseff, identifying the priorities to maximise the economic potential on both sides. The three organisation 
also announced the launch of a joint working group to explore options to advance the EU-Brazil bilateral trade 
and investment agenda. 
Contact: Constanza Negri Biasutti ; Dominic Boucsein Press Release 23 January 
President Barberis' speech Joint Declaration of the Private Sector 
EU-Brazil Business Summit website 
B2B event kicks off EU-CELAC Business Summit for the first time 
Combining policy recommendations with hands-on business events for the European and Latin American 
private sector was a priority of EUROCHAMBRES for this year’s EU-CELAC Summit. Consequently, for the 
first time ever a B2B matchmaking event brought together companies and business representatives from 36 
countries of the European Union and Latin America, leading to more than 450 bilateral meetings to explore joint 
business possibilities. On 25 January, the EU-CELAC Business Summit was officially opened by Heads of 
State and business representatives including President Alessandro Barberis, who stressed the need to identify 
clear priorities for the EU-CELAC Strategic Partnership and to support the internationalisation of European 
companies, particularly smaller ones. 

Contact: Constanza Negri Biasutti ; Dominic Boucsein Press Release 24 January 
Press Release 26 January Joint Declaration of the Private Sector 
Press Release 26 January Joint Declaration of the Private Sector 
AL-INVEST IV website EU-CELAC Business Summit website 
No growth without small companies! 
During the EU-CELAC Business Summit, EUROCHAMBRES and ECLAC (the United Nation’s Economic 
Commission for Latin America and the Caribbean) presented a joint report “Building the SME competitiveness 
in the EU, Latin America and the Caribbean”, highlighting four areas where support policies are needed to 
narrow the productivity gap between small and large companies: innovation to strengthen productive and 
management capacity, access to markets, productive linkages and business cooperation, and access to 
financing. The study was conducted in cooperation with EUROCHILE, CNI, NAFIN and CAINCO in the 
framework of the AL-INVEST IV programme. 
Contact: Constanza Negri Biasutti ; Dominic Boucsein Press Release 26 January 
Study on Building SME Competitiveness in the EU and LAC 
Education, Training and Social 
Affairs 
EUROCHAMBRES comments on proposed Quality Framework of Traineeships 
EUROCHAMBRES’ response to the European Commission’s consultation on ‘A Quality Framework for 
Traineeships’ stressed the importance of providing businesses, especially SMEs, with a high level of flexibility. 
The concept of the Framework was introduced by the Commission with the goal to ensure quality of 
traineeships and avoid potential abuses. EUROCHAMBRES strongly supports the goal of ensuring that the 
rights of trainees are well respected, but urges decision makers to take into account limitations of SMEs which 
typically do not have a human resource capacity comparable to large businesses. SMEs offer a vast number of 
traineeships placement across the EU and, if they are to continue to do so, their needs must be reflected in the 
Commission text. 
Contact: Anna Szatkowska EUROCHAMBRES' Position 
Chambers discuss new Youth Employment Package with European Commission 
A EUROCHAMBRES-led delegation of Chamber representatives met directors from the European 
Commission’s Education/Training and Employment Directorates-General in January to discuss the 
implementation of the Youth Employment Communication. The main focus of the discussion was the 
announced ‘European Alliance for Apprenticeship’: given their active role in the delivery of apprenticeship 
schemes in several member states, Chambers are considered key actors in this alliance. EUROCHAMBRES 
then submitted a list of recommendations to the European Commission on how the alliance could add value and 
deliver tangible improvements and will continue to contribute to its development. 
Contact: Anna Szatkowska EUROCHAMBRES' Position 
Innovation: Trends and Tools 
Horizon 2020: maintaining the budget, especially for SMEs 
EUROCHAMBRES, UEAPME, EVCA, EBAN and TAFTIE hosted on 22 January a joint reception in the 

European Parliament to highlight the importance of Horizon 2020 research and innovation funding to small 
businesses across Europe. The event was an occasion for the business organisations to send a message to 
the decision makers to increase the percentage of the total programme budget devoted to SMEs from 15% to 
20% as part of a broader strategy to ensure that more Horizon 2020 funds reach SMEs than under FP7. 
Contact: Anna Szatkowska Pictures of the event 
Over-regulated Environmental Impact Assessments: new complexities and additional 
costs? 
The proposed revision of the Directive on Environmental Impact Assessments (EIA) contains numerous 
shortcomings. EUROCHAMBRES is especially critical of the new information requirements for project 
developers and the extensive standardisation of certain procedural steps. Moreover, the extended list of items 
to be considered in the environmental report would create new sources of complexities and additional costs for 
project developers. In order to avert damage for the investment climate in the EU, EUROCHAMBRES urges 
European policy makers to eliminate the relevant provisions and to align the directive with principles of smart 
regulation. The EIA-Directive is crucial for any business (large and small) carrying out projects which are likely 
to have a significant effect on the environment. 
Contact: Michael Steurer EUROCHAMBRES' Position 
Economic Affairs 
Access to finance: banks take the wrong type of risks 
Speaking in a European Parliament’s SME Intergroup Breakfast on SME Lending on 9 January, Secretary 
General Arnaldo Abruzzini reiterated the importance of rethinking the risk assessment process and increasing 
the collateral capacity of business through a European Guarantee Platform. Fellow panellists Philippe De 
Backer MEP, rapporteur on SME access to finance, and the Chief Executive of the European Investment Fund, 
Richard Pelly, considered a range of challenges to restoring lending to Europe’s SMEs. 
Contact: Iwona Mertin Report on improving access to finance for SMEs by 
MEP De Backer 
EU Legislative Framework 
Irish Presidency priorities presented at EUROCHAMBRES Business Breakfast 
Ambassador Tom Hanney, Deputy Permanent Representative of Ireland to the EU, presented the businessrelated 
priorities of the Irish Presidency of the Council of the EU at a EUROCHAMBRES/Chambers Ireland 
Business Breakfast on 8 January. Mr Hanney highlighted a range of dossiers in the Irish Presidency’s ‘to do’ 
tray, notably the completion of the negotiations on the post-2014 EU Budget. He also referred to several 
objectives of relevance to Chambers, including the implementation of the European Commission’s new Youth 
Guarantee instrument and improving the handling of impact assessments within the Council. 
Contact: Ben Butters 

EUROCHAMBRES Business Breakfast: "10 most burdensome EU legislation for SMEs" with Jonathon Stoodeley, 
Head of Unit for Evaluation and Simplification, European Commission’ Secretariat General, and Costas 
Andropoulos, Head of Unit for Small Business Act & SME policies; European Commission’s DG Enterprise and 
Industry. Brussels, 8 March 2013 
Cutting red tape for SMEs is a shared responsibility 
Small and medium enterprises (SMEs) are at the heart of the European ‘smart regulation’ agenda, 
according to a Communication published by the European Commission on 7 March, just a week before the 
Spring European Council where heads of state and government are expected to take key decisions on 
Europe's economic future. 
This new text focuses on the legislative output, which is what affects businesses. Thanks to a new annual 
‘SME scoreboard’, businesses and their representatives will be able to monitor more easily regulatory 
initiatives with the most significant impact on small companies and identify the source of burdens. The 
extensive review of the acquis, which will systematically include an SME angle, is also to be welcomed in 
order to rationalise the stockpile of existing regulatory requirements. 
However, EUROCHAMBRES remains concerned that the Commission’s proactive strategy of exemptions for 
micro-enterprises is not the best way to minimise regulatory costs for SMEs. This blunt tool risks to 
undermine the application of the “think small first” approach to policy making that the Commission rightly 
endorses and promotes. 
Cutting red tape for SMEs and enabling them to focus on their core business rather than on regulatory 
compliance and administration is a shared responsibility. The Chamber network remains an active partner in 
this on-going process at EU and national level and calls on European leaders to demonstrate their 
commitment to evidence-based policy making and to swift thorough implementation without gold-plating. 
Contact: Typhaine Beaupérin Holvoet 
Press Release 7 March 
EUROCHAMBRES’ Top 10 most burdensome EU legislation 
EUROCHAMBRES’ position on Smart Regulation 
Pictures of the event 
Companies and Entrepreneurship 
Promoting business partnerships in Greece 
A business-to-business event gathering Greek and European companies is taking place in Athens on 11-12 
March 2013 

March. Parallel matching sessions are organised for the following sectors: agri-food/food processing, 
construction and materials/key enabling technologies, energy, Information and Communication Technologies, 
pharmaceuticals/health sciences and tourism. The event is co-organised by the European Commission and the 
Greek Government and supported by EUROCHAMBRES. 
Contact: Ben Butters Matchmaking event Athens B2B website 
Developing digital jobs: role of SMEs and entrepreneurs 
Speaking in the opening session of the European Commission's 4-5 March conference to launch its new Grand 
Coalition for Digital Jobs, EU Affairs Director Ben Butters underlined the key contribution of entrepreneurs and 
start-ups to a job-rich recovery and to the EU being a leader in the digital economy. He pointed out that the 
new coalition would have little relevance or impact if policy makers do not deliver conditions to allow digital 
entrepreneurs to develop their ideas, collaborate across borders and create jobs for themselves and others. 
Contact: Ben Butters Grand Coalition for Digital Jobs website 
International Relations and Trade 
EU-ASEAN Business Summit: Barberis warns against protectionism 
Speaking at the third EU-ASEAN Business Summit in Hanoi, Vietnam, on 8-9 March, President Alessandro 
Barberis reiterated the need to fight protectionist tendencies and to strengthen cooperation with counterparts in 
the ASEAN region. EUROCHAMBRES calls for new business-support projects such as those that it already 
supports in China, Thailand and India. 
Contact: Dirk Vantyghem Press release 8 March 
EU-ASEAN Business Summit website 
EBTC signs MoU with AICEP and launches first webinars 
On the occasion of a mission of 50 companies headed by the Portuguese Minister of Foreign Affairs, the 
European Business and Technology Centre (EBTC) signed a Memorandum of Understanding (MoU) with the 
Portuguese trade and investment agency, AICEP, to implement actions intended to develop economic 
cooperation between Portugal and India. In addition, companies unable to travel to India have now also the 
opportunity to register for a first series of EBTC webinars tackling topics such as wastewater, biotech and IP 
commercialisation. 
Contact: EBTC Team in Brussels Registration for the webinars 
AICEP website EBTC website 
Honduras as a bridge for European business towards Latin America 
Secretary General Arnaldo Abruzzini met on 12 February the President of Eurocámara Venezuela, Giorgio 
Trevisi, and the newly-appointed EU Permanent Representative of Honduras to the EU, Roberto Flores 
Bermúdez, to discuss a possible enhancement of cooperation between European and local business 
communities. The idea is to promote Honduras as a bridge for European businesses towards other American 
countries due to the numerous Free Trade Agreements that Honduras has signed with third countries. 
Contact: Arnaldo Abruzzini 
First East Invest Advocacy Academy hails success 
24 representatives of business support organisations (BSOs) from the six Eastern Partnership countries 

(Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine) gathered in Brussels on 19-22 February to receive 
insight on what advocacy means for BSOs, how to position themselves, how to engage members and how to 
communicate with the relevant stakeholders. Courses were completed by a presentation by the European 
Commission on the DCFTA (Deep and Comprehensive Free Trade Agreement) process with the six countries, 
as well as by a discussion with Marek Siwiek, member of the European Parliament’s Committee on Political 
Affairs, Human Rights and Democracy and EuroNest Representative. The training was part of the East Invest 
project. 
Contacts: Birgit Arens ; Irina Tikhonova East Invest website 
EuroNest Parliamentary Assembly website 
EU-GCC Investment Conferences, 27-28 April, Riyadh & Abu Dhabi 
As part of its project with the Gulf Cooperation Council (GCC), EUROCHAMBRES is organising two investment 
conferences in Riyadh (Saudi Arabia) and Abu Dhabi (United Arab Emirates) on 27-28 April. The events will 
look into the investment relations between both regions, how they can be improved, and how the EU can 
develop a stronger image in the region. The events are organised with the German Chambers in the region and 
the Federation of Gulf Chambers of Commerce. 
Contact: Dirk Vantyghem EU-GCC Invest website 
Innovation: Trends and Tools 
Worrying signals on SME Instrument 
In a joint letter with other business organisations to Innovation Commissioner Máire Geoghegan-Quinn dated 4 
March, EUROCHAMBRES stressed the importance of the active and extensive participation of small and 
medium enterprises in the European innovation-support programme ‘Horizon 2020’ and consequently the need 
for the programme’s budget and management to reflect this. Aspects of the programme’s SME Instrument 
seem under threat during the ongoing trilogues; especially single management, ear-marked budget and bottomup 
approach which would undermine all efforts to increase SMEs’ participation in the upcoming framework 
programme. 
Contact: Anna Szatkowska Joint letter to Commissioner Geoghegan-Quinn 
Chambers disappointed about Emissions Trading System quota freeze 
EUROCHAMBRES regrets the decision of the European Parliament’s ENVI committee to support the European 
Commission’s proposal to intervene in the carbon market and backload 900 million units of CO2 emission 
allowances. An arbitrary market intervention would make it more difficult for businesses to plan investments 
and consequently threatens the economic recovery. EUROCHAMBRES now calls on Members of the 
European Parliament to reject the backloading proposal in plenary. 
Contact: Michael Steurer Press Release 19 February 
Unitary Patent signature welcomed by EUROCHAMBRES 
On 18 February, EU Affairs Director Ben Butters took part in a conference co-organised by the European 
Commission and the Irish Presidency to mark the signature of the unitary patent agreement. EUROCHAMBRES 
warmly welcomed this breakthrough after decades of lobbying by the Chamber network for a harmonised 
European patent system. Mr Butters pointed out, however, that the agreement was only the end of the 
beginning, explaining that the real impact and economic value will be measured in the reduction of costs and 
burdens for innovative businesses to register and enforce patents across Europe. 
Contact: Vincent Tilman 

EU Legislative Framework 
Days to pay: 30max! 
EUROCHAMBRES will be holding a Business Breakfast on 13 March to launch a new campaign on Late 
Payments entitled ‘30max’. The aim of this campaign is to raise awareness among public administrations 
across the EU and pressure them to pay their bills to businesses on time. The launch will take place a day 
before heads of state convene for the EU Spring Summit and three days before the deadline for compliance 
with the terms of the revised Late Payment Directive, the most significant element of which is that all public 
administrations will be obliged to settle invoices within 30 days. 
Contact: Iwona Mertin Registrations for Business Breakfast 
30max website (active as of 13 March) 
Five priorities for the Lithuanian Presidency of the EU 
The internal market, smart regulation, SME policy, the Eastern Partnership and EU-U.S. trade. These are the 
five business priorities that EUROCHAMBRES presented to Alminas Maciulis, Chancellor to the Lithuanian 
Prime Minister, during a meeting in Vilnius on 28 February. Lithuania is to hold the Presidency of the EU as of 1 
July 2013. 
Contact: Arnaldo Abruzzini Press Release 26 February 
EUROCHAMBRES’ recommendations for the Lithuanian Presidency 

European Chambers profile their views in the 
upcoming negotiations with the United States 
Following the final recommendation of the United States-European Union High Level Working Group on 
Jobs and Growth, and President Barack Obama’s endorsement in his State of the Union Speech in 
February, efforts from the European Union and the United States are currently geared towards launching 
negotiations for a truly comprehensive Transatlantic Trade and Investment Partnership. 
With discussions on the mandate for negotiations on their way to Member States, EUROCHAMBRES hopes 
that an agreement is soon reached to embark on negotiations that will seek to create a more integrated 
Transatlantic Marketplace. An agreement could boost EU exports by 28%, equivalent to EUR 187 billion of 
extra EU exports. Particularly, reducing non-tariff barriers will be crucial, as 80% of total potential gains will 
stem from cutting costs imposed by regulation and bureaucracy. 
EUROCHAMBRES is actively contributing on this dossier and is launching an ad hoc working group to 
leverage on the expertise and needs of the Chamber network. The group will comprise experts from and 
affiliated of Chambers, as well as individual businesses of all sizes, and sectors, which can contribute on the 
many areas covered in the negotiations. EUROCHAMBRES will seek direct interactions with EU institutions 
and other business organisations to raise the priorities of Chambers and help create an EU-U.S. trade and 
investment agreement that is also tailored to the needs of small and medium companies. Interested in the 
U.S.? Let us know! 
Contact: Constanza Negri Biasutti; Dominic Boucsein 
Press Release 13 February 
Companies and 
Entrepreneurship 
Europe shows "economic solidarity" in Greece 
An exercise of “economic solidarity” was undertaken during a business-to-business event on 11-12 March in 
Athens with European Commission Vice-President Antonio Tajani and Greek Prime Minister Antonis Samaras, 
with the participation of more than 600 Greek and other European companies. The event had not only a great 
impact in easing the difficulties currently faced by Greek companies but also demonstrated that Europe is willing 
and capable to unite in time of need. EUROCHAMBRES was present at the session on access to finance. 
Participants appreciated the policy work of Chambers in facilitating access to finance for businesses. 
Contact: Arnaldo Abruzzini 
Fighting misleading marketing practices 
The European Commission plans to issue a legislative proposal in the course of 2013 to review the Misleading 
April 2013 

and Comparative Advertising Directive. Thousands of companies are victims of this phenomenon in Europe 
such as the business directory scam. Two priorities should guide the Commission’s approach: i) it should revise 
the rules prohibiting certain practices and ii) it should strengthen enforcement of the rules against misleading 
marketing practices in cross-border cases. 
Contact: Vincent Tilman 
International Relations and 
Trade 
Focus on investment relations with the Gulf region 
As part of its project with the Gulf Cooperation Council (GCC), EUROCHAMBRES is organising on 27-28 April 
two investment conferences in Riyadh (Saudi Arabia) and Abu Dhabi (United Arab Emirates) to discuss EUGCC 
investment relations. The results of a company survey on their investment strategies will be presented and 
several high level speakers, including MEP Angelika Niebler and the Head of the EU Delegation to Saudi 
Arabia, will focus on the (untapped) potential for investment in the region. The project is co-financed by the EU 
and led by EUROCHAMBRES in partnership with the German Chambers in the UEA and Saudi Arabia, as well 
as the Federation of Gulf Chambers of Commerce. 
Contact: Dirk Vantyghem EU GCC Invest website 
EBTC’s first series of webinars well launched 
The European Business and Technology Centre in India (EBTC) organised for the first time in March a series of 
five webinars, on biotechnology, transport, smart grids, wastewater and IP Commercialisation, generating an 
attendance of over a hundred participants who had the opportunity to interact with EBTC’s Sector Experts. The 
webinars are available on EBTC’s YouTube channel. 
Contact: EBTC team in Brussels EBTC YouTube channel 
EBTC website 
Gain better knowledge on the prospects of the EU-Colombia Free Trade 
Agreement 
Following the recent Free Trade Agreement between the EU and Colombia, the AL-INVEST IV Coordination 
and Services Consortium led by EUROCHAMBRES will hold on 24-25 April two webinars dedicated to 
European companies and intermediary organisations interested in better understanding and seizing the 
opportunities emerging from the Colombian market. Deadline for registration: 18 April. 
Contact Simona Obreja Registration 
AL-INVEST IV website 
Innovation: Trends and Tools 
Remove national barriers to the eID and eTrust European market! 
This was the message conveyed by Chambers’ to EU policy makers during a workshop organised by 
ChamberSign on 19 March in Brussels. The proposal for an eID and eTrust Regulation is now in the European 

Parliament’s and the European Council’s hands in the hope for an adoption of the text by the end of the year. 
This Regulation will facilitate the secure access to eGovernment and business-to-business applications. 
Contact: Vincent Tilman ChamberSign position on eID and eTrust Regulation 
ChamberSign website 
EU Legislative Framework 
Industrial Policy: need for a clear strategy 
Speaking at the European Parliament’s roundtable on Industrial Policy hosted by Reinhard Bütikofer MEP on 20 
March, Secretary General Arnaldo Abruzzini called for an effective strategy to strengthen the industrial base and 
competitiveness of the EU economy. In this context, he outlined the most pressing barriers to industrial growth, 
emphasised the importance of better access to skilled labour markets and the implementation of effective 
vocational education systems. 
Contact: Michael Steurer 
On-time payment? Not in Europe… 
On 13 March, in the presence of the Director General of DG Enterprise and Industry of the European 
Commission, Daniel Calleja-Crespo, Secretary General Arnaldo Abruzzini launched a 30max campaign 
addressing the problem of late payments between public and private sector. By 16 March all Member States 
were obliged to transpose the revised Late Payment Directive, but for the moment only 12 countries did so, 
while in fact only two countries pay within 30 days. 
Contact: Iwona Mertin Press Release 13 March 
30max campaign 
EUROCHAMBRES meets Members of UK Parliament 
EU Affairs Director Ben Butters took part in a meeting of business representatives with a cross-party delegation 
of UK Members of Parliament in Brussels on 26 March. Discussions focused on the internal market. He 
stressed that, while a growing number of SMEs now capitalise on the opportunities presented by trading across 
the EU, many improvements are still required before this becomes a genuine single market, which requires a 
greater focus on implementing existing rules than on developing new legislation 
Contact: Ben Butters 

Every year, Chambers 
manage 900,000 
apprenticeships in 
Europe 
Youth unemployment measures yet 
to take off 
The EU institutions recently endorsed a proposal to establish Youth Guarantee 
schemes in each member state, whereby under-25s should receive an offer of 
employment, continued education, an apprenticeship or a traineeship within four 
months of becoming unemployed or leaving formal education. However, there is 
growing concern within the Chamber network that EU leaders’ political 
commitment to tackling youth unemployment is not yet being converted into 
concrete actions. 
Reflecting this, senior Chamber representatives have been on the offensive in 
recent weeks, meeting top Commission officials, hosting an SME Intergroup event 
in the European Parliament and approaching national ministers to stress in 
particular the need for the establishment of effective, demand driven 
apprenticeship schemes across the EU. This will also be the theme of 
EUROCHAMBRES’ involvement in the European Business Summit on 16 May. 
In July, the European Commission will launch the new European Alliance for 
Apprenticeships. Given the unparalleled expertise of Chambers in delivering 
apprenticeship schemes and other forms of work-based learning in many member 
states, EUROCHAMBRES firmly believes that it must play a pivotal role in this 
important new Alliance and thus help ensure that policy makers’ encouraging 
words are translated into effective deeds. 
Contact: Ben Butters 
Press release 24 April 
Chambers: key players in raising skills 
Companies and 
Entrepreneurship 
Enhancing entrepreneurship should start at school 
Discussing with MEP Paul Rübig, rapporteur on the Entrepreneurship 2020 Action Plan, on how to enhance 
entrepreneurship in Europe, Secretary General Arnaldo Abruzzini stressed the importance of teaching 
entrepreneurship right from schools, to nurture entrepreneurial attitudes and skills rather than prepare students 
for paid employment. A better use of the instruments already available to encourage Europeans to create their 
own business such as the Youth Guarantee Schemes, Erasmus for Young Entrepreneurs and the Structural 
Funds, was also pointed out. 
Contact:Typhaine Beaupérin-Holvoet Press release 9 January 
Response to the European Commission consultation 
on the Entrepreneurship Action Plan 
May 2013 

International Relations and 
Trade 
Register now for the EU-Korea Business Round Table! 
EUROCHAMBRES, BUSINESSEUROPE and the Korea International Trade Association (KITA) are launching 
the second EU-Korea Business Roundtable on 12 June in Seoul, Korea. The event focuses on EU-Korean 
economic relations at policy and business level, and touches upon prominent and emerging sectors in both 
regions, offering EU companies a unique opportunity to discover untapped potential and strengthen economic 
ties with Korea. Interested companies can register now! 
Contact:Irma Orlandi Information and registration 
KITA website 
European Pavilion at Clean Energy Expo China 2013 
The EU SME Centre will be presenting a European Pavilion at the Clean Energy Expo China (CEEC) in Beijing 
on 3-5 July. The European Pavilion provides a portal for European companies to the world’s largest energy 
market. European business will have the opportunity to increase their visibility, network with counterparts and 
benefit from additional useful services. The European Pavilion also offers special budget packages to 
enterprises with limited financial resources. CEEC is the only cross-sector Trade Fair and Conference in China 
showcasing the entire clean energy portfolio. More than 20,000 trade visitors and 800 delegates are expected 
to attend. 
Contact:Johanna Niemistö Information and registration form 
Join the ‘Green Growth’ mission to China 
President Alessandro Barberis, Vice-President of the European Commission Antonio Tajani and Environment 
Commissioner Janez Potocnik will be in China on 18-20 July for a “Green Growth” mission. The objective is to 
help European enterprises operate in China and promote business contacts in Europe and China. European 
companies and associations can express their interests and join the mission until 24 May. 
Contact:Johanna Niemistö Mission for Growth to China website 
“The green tech market in China”: new EU SME Centre report 
A new report by the EU SME Centre provides an overview of the Chinese green tech market and highlights 
areas in which European companies are likely to come across opportunities in the coming years. It covers the 
sub-sectors cleaner conventional energy, renewable energy, electric power infrastructure, green building, clean 
water and waste management. 
Contact:Johanna Niemistö The green tech market in China” report 
EU SME Centre website 
Internationalisation of business from the six Eastern Neighbourhood 
countries 
22 representatives of business support organisations recently completed a training to facilitate access of 
enterprises from the six Eastern Partnership countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova, and 
Ukraine) to the European market. A small group of companies in the construction sector will be visiting the 
Construmat fair in Barcelona on 22-24 May. The visit will be a first opportunity for most of them to get in 
contact with European companies. 
Contact:Birgit Arens; Irina Tikhonova East Invest website 

Joint Business Statement EU-India Free Trade Agreement 
EUROCHAMBRES and 14 other business organisations called for an enhanced engagement with India towards 
an ambitious Free Trade Agreement (FTA). The Joint Business Statement came on 15 April, ahead of EU 
Trade Commissioner Karel De Gucht’s meeting with Indian Minister of Commerce Anand Sharma. It was 
received with appreciation by key EU policy makers and several high level Indian business organisations in 
liaison with the European Business and Technology Centre (EBTC). 
Contact:EBTC Team in Brussels Joint Business Statement 
Global India Business Meeting, Belfast 23-25 June 
EUROCHAMBRES is co-organising for the second time the Global India Business Meeting taking place in 
Belfast (UK) on 23-25 June to debate a wide range of issues related to the Indian economy. Poul V. Jensen, 
Director of the European Business Technology Centre will participate in a dialogue on planting the seeds of low 
carbon growth. Register now with EUROCHAMBRES or EBTC and get 50% discount on the standard fee! 
Contact:EBTC Team in Brussels Global India Business Meeting programme 
Registration form 
Latin America Academy 2013: Salinas (Guayaquil), Ecuador 
The Coordination and Services Consortium of the AL-INVEST IV programme, led by EUROCHAMBRES, is 
organising the Latin America Academy, a training programme offering 21 hours of courses and benchmarking 
for Chambers and business organisations from Latin America and Europe. Almost 70 participants will gather for 
this 7th edition of the Latin America Academy taking place in Salinas, Ecuador on 24-29 June. Registrations 
are still open. 
Contact:Sophie Devos Latin America Academy website 
Registrations 
Fostering trilateral EU-Turkey-Egypt business relations 
The EU Delegation in Ankara, in cooperation with TOBB (the Union of Turkish Chambers) and 
EUROCHAMBRES, has launched the EU-Turkey Global Business initiative which aims at fostering trilateral 
trade and investment relations between EU and Turkish companies on the one hand, and businesses from 
South Mediterranean and Middle East countries on the other hand. Networking and matchmaking events will be 
organised on 26-27 May in Alexandria (Egypt) and on 11-12 June in Tunis (Tunisia). 
Contact:Dirk Vantyghem EU-Turkey Global Business Bridges Initiative website 
EUROCHAMBRES part of the Mission for Growth in Russia 
A delegation of European entrepreneurs will accompany European Commission Vice President Antonio Tajani 
to Moscow and Saint-Petersburg on 17-18 June to meet political and key business leaders, as part of the EU 
Missions for Growth strategy. The aim of the Mission is to boost EU-Russian trade and investment. Besides 
high-level political meetings, B2B events will be organised for companies operating in the manufacturing, 
tourism and high-end sectors. 
Contact:Juliette Loppé Mission for Growth website 
Business Associations stress benefits of a Transatlantic Trade and 
Investment Partnership 
EUROCHAMBRES, BUSINESSEUROPE, AmChamEU, the Transatlantic Business Council and the European 
Services Forum have joined forces to underscore the importance and vast business opportunities of an 
ambitious and comprehensive Transatlantic Trade and Investment Partnership (TTIP). The agreement should 

go beyond a traditional free trade agreement, covering a whole range of non-tariff barriers, which will particularly 
benefit smaller businesses. Both the European and American economies are expected to greatly benefit from 
this deal in terms of increased investment flows and GDP growth. 
Contact:Constanza Negri Biasutti; Dominic Bocsein 
Joint business statement on a Transatlantic Trade 
and Investment Partnership (TTIP) 
Economic Affairs 
SME Finance Forum 
On the eve of the Informal Competitiveness Council in Dublin on 2 May, EUROCHAMBRES took part in the 
SME Finance Forum organised by the European Commission. A selected group of 35 experts exchanged views 
with the European institutions, European Investment Bank and European Investment Fund on EU financial 
instruments, the action plan on access to finance and the Green Paper consultation on long term financing. 
Contact: Iwona Mertin 
EU Legislative Framework 
EUROCHAMBRES meets Lithuanian Vice-Minister of Economy 
In preparation of the Lithuanian EU Presidency during the second semester of 2013, on 15 April Secretary 
General Arnaldo Abruzzini met Marius Busilas, Lithuanian Vice-Minister of Economy. Mr Abruzzini underlined 
the need to strengthen the links between the SME Envoys network and the Competitiveness Council. 
Discussions also focused on ensuring that SME policy is at the top of the policy agenda in late 2013 and better 
involving stakeholders in the work of the Council as well as the EU industrial policy. 
Contact:Typhaine Beaupérin-Holvoet EUROCHAMBRES’ recommendations for the 
Lithuanian EU Presidency 
Chambers'News 
New Presidents for the Chambers of Malta, Serbia and Bosnia and 
Herzegovina 
New appointments in the Chamber network: David G. Curmi was unanimously elected President of the Malta 
Chamber of Commerce, Enterprise and Industry for a two-year term. Željko Serti was appointed as new 
President of the Serbian Chamber of Commerce. Ismet Kumalic was appointed as new President of the Foreign 
Trade Chamber of Bosnia and Herzegovina. 
Contact:Catherine Bourdeau 
Death of Deputy President George Kassimatis † 
EUROCHAMBRES deeply regrets to announce that its Deputy President George Kassimatis died on 16 April in 
Piraeus (Greece). Mr Kassimatis was President of the Union of Hellenic Chambers of Commerce of Greece 
during twenty years and Deputy President of EUROCHAMBRES for two mandates. We remember his 
dedication and constant efforts in supporting EUROCHAMBRES' activities. 
Contact:Dimitrios Mathios 

Industrial Policy: 
Europe needs a business plan 
Regulatory burdens, market barriers, skills, finance and the availability of affordable natural resources. These are, 
in a nutshell, the main problems that European manufacturers encounter. 
At the 6 June European Commission conference ‘An Industrial Renaissance’ EUROCHAMBRES thus urged policy 
makers to focus on the day-to-day challenges that manufacturers face and to develop an EU business plan setting 
out specific actions to tackle the most obvious barriers to industrial growth. These barriers include high energy 
prices, a mismatch in the supply and demand of skills, limited access to finance and the competitive disadvantage 
of EU industries on the global market. 
EUROCHAMBRES also underlined the importance of much greater coherence of EU industrial policy with other 
policy fields like competition (state aids), climate action and the international trade agenda. Limiting the efforts to a 
small number of new technologies will simply not cure the current malaise in EU manufacturing or propel Europe 
towards the Commission’s ambitious new target of a 20% share of GDP for industry by 2020. 
In order to actively provide recommendations to the EU, Chambers recently developed an action programme 
which addresses measures in ten different areas, crucial to Europe’s future industrial competitiveness and 
sustainability. 
Contact: Michael Steurer 
Press Release 6 June 
EUROCHAMBRES’ Ten Point-Programme for a stronger industrial base of the European Economy 
International Relations and 
Trade 
Webinars on doing business in China 
Practical, free of charge webinars on various topics such as ‘How to get my goods through Chinese customs’ and ‘How 
to navigate China's food and beverage distribution channels?‘ are broadcasted every week by the EU SME Centre. 
An opportunity for European companies eager to penetrate the challenging Chinese market! 
Contact: Johanna Niemistö Upcoming webinars 
Past webinars EU SME Centre website 
New database on Chinese legislation 
The EU SME Centre has published a new online tool for small and medium enterprises doing business in China. The 
June 2013 

law database provides an introduction to elementary Chinese legislation on foreign investment and foreign trade with 
approximately 40 relevant laws and regulations. 
Contact:Johanna Niemistö The Chinese law database 
MEPs keen to promote the EBTC in their constituencies 
15 Members (MEPs) of the European Parliament Delegation for relations with India, led by MEP Graham Watson, 
visited on 2 May the office of the European Business and Technology Centre (EBTC) in Kolkata. EBTC staff 
highlighted the opportunities in the Indian cleantech market and discussed market access challenges faced by 
European companies. MEPs expressed their full support to EBTC’s mission and pledged to inform companies in their 
constituencies of its activities and services. 
Contact: EBTC team in Brussels Registration for the Global India Business Meeting (23-25 
June, Belfast) 
EBTC website 
Roundtable Debate “The role and aspirations of SMEs in Latin America and 
Europe” 
The AL-INVEST IV programme, led by EUROCHAMBRES, CAINCO Bolivia, NAFIN Mexico and CNI Brazil, in 
collaboration with Friends of Europe is organising on 19 June in Brussels a roundtable debate on “Investing in growth 
and development: The role and aspirations of SMEs in Latin America and Europe”. The debates will centre on the 
small and medium-sized enterprises (SMEs) as local development engines and derivers for the regional integration, 
and see the participation of high-level discussants, including decision-makers from the EU and national institutions, 
international organisations representatives, business and industry, civil society and academics from Europe and Latin 
America. 
Contact: Paolo Baldan Conference website 
AL-INVEST IV website 
United States: EUROCHAMBRES steps up pace ahead of TTIP negotiations 
EUROCHAMBRES continues its active engagement in relation to the upcoming negotiations of the Transatlantic Trade 
and Investment Partnership (TTIP) with the United States. After the official launch of the Business Alliance for the 
TTIP on 16 of May, participating associations are now joining forces to push for an ambitious and comprehensive 
negotiation mandate to be adopted by Member States this month, as well as envisaging outreach activities to civil 
society. To feed into this process, EUROCHAMBRES’ ad hoc working group is holding its first meetings to help move 
ahead in identifying concrete actions, barriers and priorities for Chambers to be tackled in the upcoming negotiations. 
Contact: Constanza Negri Biasutti ; Dominic Boucsein Press Release 16 May 
Education, Training and Social 
Affairs 
The EU needs strong apprenticeship schemes to fight youth unemployment 
Vice-President Richard Weber participated in a panel alongside with EU Employment Commissioner László Andor at 
the European Business Summit on 16 June. He reminded policy makers that measures to increase the employability of 
young people will only prove effective if they are based on the human resource requirements of the private sector. 
Contact: Bettine Gola Press Release 16 May 
EUROCHAMBRES supports the United Nations’ Development Programme 

In May, EUROCHAMBRES hosted a researcher from Vilnius University (Lithuania) within the framework of the 
Partners 4 Value Staff Training Mobility Programme of the United Nations. It was an interesting opportunity to 
exchange experience and gain an expert knowledge on economics, entrepreneurship and stock markets. 
Contact: Iwona Mertin 
Innovation: Trends and Tools 
EUROCHAMBRES insists on strong SME Instrument in Horizon2020 
Horizon 2020 needs a strong instrument for small and medium enterprises (SMEs) and private companies; this 
message was reinforced in a letter sent to the COREPER in mid-May. In two small-group discussion meetings, DIHK 
– the Association of German Chambers – and EUROCHAMBRES explained to Research Working Group Attachés 
what fast track to innovation procedures and the SME Instrument can do to get Europe’s economy back on track. 
Contact: Bettine Gola 
EUROCHAMBRES hosts scientists from Poland 
On 24 May EUROCHAMBRES hosted a group of scientists from Polish universities and the Regional Development 
Agency of the Podkarpackie Voivodship to discuss aspects related to financing research and innovation, administrative 
burdens and taxation, as well as the role of Chambers in the economic process. 
Contact: Iwona Mertin 
Chambers greet European Council’s new focus on energy prices 
In recent years, Energy prices have been one of the main factors impeding the reindustrialisation of Europe. 
Therefore, EUROCHAMBRES has strongly welcomed the Heads of State and Government’s commitment of 22 May 
to tackle high energy prices, a long cherished demand of the Chamber network. This commitment now has to be 
turned in concrete actions, including a cost-effective strategy to move towards renewable energy and the conclusion of 
a global climate change agreement. 
Contact: Michael Steurer Press Release 22 May 
European Council Conclusions of 22 May 
Economic Affairs 
Chambers and European Parliament join forces against late payments 
Results of the 2013 European Payment Index, presented during a EUROCHAMBRES-sponsored European Parliament 
SME Intergroup breakfast on 29 May, worryingly revealed that the problem of late payments has worsened since last 
year. EUROCHAMBRES recalled its 30max campaign and underlined the importance of not just transposing the 
revised Late Payment Directive legally, but also implementing it in real terms – that is ensuring that the public 
administration settles its bills with the private sector within 30 days. Members of the European Parliament proposed to 
formally question the European Commission on its own payment practices and to consider what more they could do to 
support Chambers’ efforts to tackle the late payment culture across much of the EU. 
Contact: Iwona Mertin 30max campaign 
European Commission’s Late Payment Information Campaign 

Chambers' News 
Latin America Academy coming soon 
From 24-29 June, around 69 Chamber and business organisations representatives from 18 Latin American countries 
will gather in Guayaquil, Ecuador, for EUROCHAMBRES’ 7th Latin American Academy. During this one-week training 
programme, organised in the framework of the AL-INVEST IV Programme, participants will have the opportunity to 
attend 21 hours of courses and a session summarising their experience and ideas. One of the main objectives of this 
event is to reinforce the links between the European Union and Latin America. 
Contact: Sophie Devos-Gaillard 
Latin America Academy website 

Save the date: EUROCHAMBRES Economic 
Forum – Istanbul, 16 October 
Under the theme "Investing in Growth!”, EUROCHAMBRES and the Union of Chambers and Commodity 
Exchanges of Turkey (TOBB) will organise the first edition of the “EUROCHAMBRES Economic Forum” on 
16 October 2013 in the beautiful city of Istanbul. 
This event will bring together national, regional and local Chambers offering innovative services to 
businesses and willing to share their ideas and best practices with other international counterparts. 
The Forum will cover a broad range of topics such as: 
- Skills needed to meet the needs of the labour market; 
- Internationalisation of European companies; 
- Access to finance; 
- New trends in Chambers; 
- Support to start-ups; 
- Female entrepreneurship; 
- Digital services; 
- Greening the economy and 
- Sustaining industry 
Participants will also have the opportunity to discuss – face to face with representatives of the EU 
Institutions and other prominent speakers from the world of business – the European policies that affect the 
future of companies and Chambers, as well as to benchmark through a dedicated Chamber-to-Chamber 
(C2C) matchmaking system. 
Looking forward to meeting you in Istanbul! 
Contact: Arnaldo Abruzzini 
Draft programme 
EUROCHAMBRES Economic Forum webpage 
EUROCHAMBRES Economic Forum website and registration (coming soon) 
Companies and 
Entrepreneurship 
Public hearing on Erasmus for Young Entrepreneurs 
The Committee of Budgets of the European Parliament organises a hearing on Erasmus for Young 
Entrepreneurs on 11 July. Secretary General Arnaldo Abruzzini will share his views with the MEPs on the 
nearly five years of implementation of the programme, based on the experience acquired by EUROCHAMBRES 
as Support Office since 2009, taking stock of the achievements and highlighting the challenges ahead. 
Contact: Typhaine Beaupérin-Holvoet EP Budgets Committee webpage 
July 2013 

Erasmus for Young Entrepreneurs website 
High level conference to mark the fifth anniversary of the Small Business 
Act 
On 25 June, Secretary General Arnaldo Abruzzini participated in the conference “Europe works for SMEs” 
organised in the European Parliament to mark the Small Business Act’s fifth anniversary, involving notably 
European Commission Vice-President Antonio Tajani, Regional Policy Commissioner Johannes Hahn and 
European Parliament Vice-President Othmar Karas. Speaking on EU support for small and medium 
enterprises, Mr Abruzzini criticised the lack of resources devoted to the providers of most of the jobs in Europe 
(i.e. 0.2% of the future EU budget) and the lack of speed in delivery. Entrepreneurs need money now not next 
year! 
Contact: Typhaine Beaupérin-Holvoet 
EUROCHAMBRES participates in the SME Envoys Network meeting 
The 29 national SME Envoys and European business organisations met on 11 June in Brussels to discuss the 
latest SME policy development and notably the issue of SMEs’ internationalisation. International Affairs Director 
Dirk Vantyghem reiterated EUROCHAMBRES’ main concern in this area – i.e. the lack of coherence and 
leadership within the EU institutions – and stressed the need to create a Platform for SME Internationalisation 
gathering all stakeholders to share intelligence, decide priorities and divide the work. 
Contact: Typhaine Beaupérin-Holvoet Network of SME Envoys website 
International Relations and 
Trade 
EU-South Africa Business Forum 
On 17 July, EUROCHAMBRES will be represented in the second EU-South Africa Business Forum in Pretoria. 
The event is held back-to-back with the sixth EU-South Africa Political Summit, and will look into “Building 
Business Partnerships for Growth and Employment”, with a special focus on youth employment through training 
programmes. Prominent business and political leaders will also be present to address both current and 
potential economic relations between the two regions, specifically in the fields of: renewable energy, ICT, 
agriculture, as well as oil and gas. 
Contact: Irma Orlandi 
“The construction sector in China’’ – new report published 
A new report by the EU SME Centre in Beijing provides information on China’s enormous and yet growing 
construction market, offering lucrative opportunities. European companies with high-quality, innovative and 
reliable products have good chances in the market. 
Contact:Johanna Niemistö “The construction sector in China” report 
EU SME Centre website 
Register for the Summit and Mission on ‘Greening Cities’ (16-23 October, 
India) 
The sixth EuroIndia Summit and Mission on ‘Greening Cities’ taking place on 16-23 October in India are coorganised 
by the European Business and Technology Centre (EBTC), the Euro-India Centre and the 
Confederation of Indian Industry (CII). They represent a unique opportunity for Chambers and small businesses 
to connect with local and regional authorities in Europe and in India and to share sustainable urban 

development expertise on a peer-to-peer basis. Chambers at different levels are particularly welcome to 
become an Official Supporter. 
Contact: EBTC team in Brussels EBTC Events Calendar 
India: take the pulse of EBTC’s activities with its recently launched blog 
The European Business and Technology Centre (EBTC) launched a blog to render its activities more visible and 
stimulate interaction via social media. The past month saw EBTC facilitating a biotech mission (first week of 
June), organising an event on bio-fuels (21 June), participating in the Global India Business Meeting in Belfast 
(24 June), hosting an innovative live streaming between New Delhi and Paris (25 June) and holding a webinar 
on cleantech opportunities (2 July). 
Contact: EBTC team in Brussels EBTC blog 
EBTC website 
Education, Training and Social 
Affairs 
Apprenticeships and Chambers at the heart of Berlin job summit 
Participating in the job summit hosted by Chancellor Angela Merkel on 3 July in Berlin, Honorary President 
Christoph Leitl highlighted to Heads of State and Minister the benefits of the dual system of classroom and 
work-based education and training – as already managed and delivered by Chambers in several EU countries – 
as a key factor in ensuring that more young people develop the skills and competences that employers require. 
EUROCHAMBRES also committed to increasing cross-border exchanges of best practice between Chambers 
on education and training via a pledge that was made at the launch event of the European Alliance for 
Apprenticeships on 2 July in Leipzig, Germany. 
Contact: Bettine Gola Press Release 2 July 
Press Release 28 June Press Release 26 June 
EUROCHAMBRES’ pledge 
Innovation: Trends and Tools 
Chambers contribute to EU consultation on a 2030 framework for climate 
and energy policies 
The EU’s future energy and climate policy requires a holistic approach and has to become more coherent with 
other strategic EU objectives like the reindustrialisation of Europe. This is the main message 
EUROCHAMBRES pointed out in its response to the recently closed consultation on a 2030 energy and climate 
policy framework. Though Chambers support the further reduction of CO2 emissions and a cost-effective 
expansion of renewable energy sources, new targets have to be assessed carefully and must consider global 
competitiveness aspects on the one hand and security of supply on the other. 
Contact: Michael Steurer EUROCHAMBRES’ position 
Economic Affairs 

 EUROCHAMBRES project reflected in a new proposal for Joint Financial 
Instruments 
The new ‘Investment Plan for Europe’ – joint initiative of the European Investment Bank (EIB) and the European 
Commission – strongly reflects EUROCHAMBRES’ project for a European Guarantee Platform. 
EUROCHAMBRES is satisfied with this development, especially that it targets small and medium enterprises 
and aims at higher private capital participation in SME financing via securitisation. The European Guarantee 
Platform that EUROCHAMBRES has been promoting and advocating since 2011 aims at increasing lending to 
the real economy by combining the EU budget resources with the capacity of the EIB, European Investment 
Fund and national promotional banks. 
Contact: Iwona Mertin 
EUROCHAMBRES response to consultation on long-term financing 
The availability and composition of long-term financing has been affected by a set of factors related to the 
financial crisis, cyclical weakness and structural factors. Within the euro area, the amount of private and public 
sector capital investment has been reduced, therefore the supply for long-term financing has declined as well. 
Taking into account such fierce financing conditions, on 25 June EUROCHAMBRES handed in a response to 
the European Commission’s consultation on the Green Paper on the long-term financing pointing out important 
aspects related to this topic. 
Contact: Iwona Mertin 
EUROCHAMBRES’ response to the consultation on 
the Green paper on the long-term financing of the 
European economy 
EU Legislative Framework 
EU leaders reminded of Europe 2020 
Prior to the 27-28 European Council, EUROCHAMBRES sent a letter to all Permanent Representations to the 
EU, European Commission President José Manuel Barroso and European Council President Herman Van 
Rompuy to urge them to revive efforts to accomplish the Europe 2020 Strategy targets. This message has been 
developed on the basis of feedback provided by Chambers to a survey on Europe 2020 and a one-page factsheet 
developed by EUROCHAMBRES, depicting the progress towards Europe 2020 targets and Chambers’ 
role in the governance and monitoring of the process. 
Contact: Iwona Mertin EUROCHAMBRES’ letter on Europe 2020 
Europe 2020 fact-sheet 

Three ways in which the EUROCHAMBRES 
Economic Forum can benefit you and your 
organisation: 
1 - Develop new partnerships – if you are looking for new contacts, this is a great chance to meet a 
group of people with common interests and ideas. 
2 - Disseminate information – if you wish to promote and publicise your activities, EUROCHAMBRES 
Economic Forum will give you an opportunity to talk to EU policy makers and representatives from public 
and private organisations from around Europe and beyond. 
3 - Expand your knowledge – EUROCHAMBRES Economic Forum is about the exchange of ideas 
and information, with experts giving thought-provoking insights into various business-related subjects. 
Additionally, a C2C (Chamber-to-Chamber) Meeting System is now available, allowing you to pre-arrange 
meetings with other attendees before the Forum on subjects of common interest. 
We look forward to meeting you in Istanbul! 
Contact: EUROCHAMBRES Economic Forum team 
EUROCHAMBRES Economic Forum website (with registration form and C2C System) 
Companies and 
Entrepreneurship 
Three recommendations for a new SME policy 
Taking stock of five years of implementation of the Small Business Act and in the light of the on-going 
economic crisis, EUROCHAMBRES put forward a series of recommendations regarding the EU policy for small 
and medium enterprises (SMEs) based on three pillars: better governance (closer links between the SME Envoy 
Network and the Competitiveness Council, one Competitiveness Council each year on SME policy), faster 
delivery (proper and quick implementation of EU legislation and efficient take-up of EU funds) and measures 
focussed on stimulating SMEs to develop and create jobs. 
Contact: Typhaine Beaupérin-Holvoet EUROCHAMBRES’ position 
International Relations and 
Trade 
Join the Missions for Growth to Vietnam, Myanmar and Thailand 
September 2013 

President Alessandro Barberis and Vice-President of the European Commission Antonio Tajani will be in South- 
East Asia for a trade mission on 12-16 November. Myanmar, as part of the mission, will be under the umbrella 
of the EU-Myanmar Task Force chaired by the High Representative for Foreign Affairs and Security Policy, 
Catherine Ashton. Development Commissioner Andris Piebalgs will also be present. European companies and 
associations can express their interest and join the mission until 30 September. It is possible to participate in 
the Myanmar mission only, or to combine it with the visit of Vietnam and/or Thailand. 
Contact: Johanna Niemistö Missions for Growth to Myanmar, Vietnam and Thailand 
website 
The European ASEAN Business Centre lists obstacles to Thai market 
On 5 September the European ASEAN Business Centre (EABC) in Bangkok published a position paper 
summarising the main trade and investment issues that European companies are facing when doing business 
in Thailand. The paper also lists recommendations on how the business environment and the competitiveness 
of the Thai market can be improved. It will now be discussed with Thai and EU decision makers and 
stakeholders. 
Contact: Johanna Niemistö EABC publications 
Take part in a survey on access to finance in China 
The EU SME Centre in Beijing has launched a short survey on the challenges that EU small and medium 
enterprises (SMEs) face when accessing finance in China. The answers will be treated in a confidential manner 
and will help the Centre improve its services. 
Contact: Johanna Niemistö Survey on access to finance in China 
A guideline on internal labour rules and social insurance in China 
The EU SME Centre in Beijing has a published a new guideline which provides an overview of China’s policies 
on labour unions and the social welfare system. It gives European businesses practical advice on how to 
regulate company labour relations with the help of an employee handbook. 
Contact: Johanna Niemistö Guideline on Chinese internal labour rules 
EU SME Centre website 
Plug into EBTC’s digital channels to expand business in India 
Business in India did not witness a slowdown of activities during the summer months. On the contrary, the 
European Business and Technology Centre (EBTC) released a new corporate movie presenting opportunities 
and services in four sectors: Biotechnology, Energy, Environment and Transport. Furthermore, the EBTC office 
in Bengaluru has been preparing intensively for the launch of the European Technology Experience Centre 
(ETEC) where EU small businesses can display their technologies – physically or virtually – for uptake by Indian 
companies and investors. 
Contact: EBTC team in Brussels EBTC corporate movie 
ETEC webpage 
Joint Working Group on EU-Brazil economic relations 
EUROCHAMBRES, along with BUSINESSEUROPE and CNI Brazil (National Confederation of Industry of 
Brazil) set up a joint working group at the sixth EU-Brazil Business Summit in January to give new impetus to 
EU-Brazil economic relations. The Joint Working Group set up by business is mirrored by a political group set 
up by the European Commission and the government of Brazil. In order to facilitate synergies between both 
groups, EUROCHAMBRES along with its partners is working on a list of concrete recommendations on ways to 
boost business between both regions ahead of a technical visit of Brazilian officials to Brussels due on 20 of 
September. 

Contact: Constanza Negri Biasutti ; Dominic Boucsein 
Global Chamber Platform to meet in the fringes of the EUROCHAMBRES 
Economic Forum 
After celebrating its ten year anniversary in Brussels in 2012, Members of the Global Chamber Platform (GCP) – 
representing the major national and trans-national Chamber organisations from the four corners of the globe – 
will convene for their annual meeting on 15 October in Istanbul, Turkey, ahead of the EUROCHAMBRES 
Economic Forum. The GCP will discuss current economic trends, challenges for the global economy and ways 
to foster more trade and investment on a global scale. On this occasion the Global Economic Report 2014 will 
be presented based on a comprehensive survey among GCP Members. 
Contact: Dominic Boucsein 
Innovation: Trends and Tools 
EUROCHAMBRES responds to EU consultation on carbon leakage 
As climate protection efforts differ between the EU and other economic powers, CO2-intensive European 
businesses face a major competitive disadvantage on the global level. Against this background, the EU is 
currently revising the list of so-called carbon leakage sectors which are given the right to receive free emission 
allowances under the EU Emissions Trading System. In this context, EUROCHAMBRES voiced its concern 
about the increased risk of losing a significant number of CO2- and energy- intensive companies to third 
countries and called for a continuation of free and increased allocations for the sectors concerned. 
Contact: Michael Steurer EUROCHAMBRES’ position 
Chambers' News 
Temporary job opportunity in International Affairs 
In the framework of the "LINX - Chamber staff exchange" programme, EUROCHAMBRES is offering a fivemonth 
opportunity (mid October 2013-end February/early March 2014) to work in its International Affairs 
Department to temporary replace a policy advisor. This is a unique opportunity for a Chamber Staff to have an 
insight and a better understanding of EUROCHAMBRES’ activities. Deadline to apply: 30 September. 
Contact: Dirk Vantyghem 
Job description 

Countdown to EUROCHAMBRES Economic 
Forum: 
register until 14 October! 
In less than one week time (16 October), the first edition of the EUROCHAMBRES Economic Forum will 
take place in Istanbul. 
The theme of this year’s forum is “Investing in Growth!”. Why this theme? 
Investing in growth is vital to Europe’s economic recovery. This investment must be intellectual, as well as 
financial, with policy makers making a concerted effort to ensure that their decisions contribute to the revival 
of the real economy, the motor for growth. 
How can Chambers of Commerce and Industry make a substantial contribution to economic recovery? 
How can we shape the policies that will affect the future of European businesses? 
How should we adapt our products and services to ensure that we continue to provide our member 
businesses with the best tools to excel on domestic and international markets? 
The EUROCHAMBRES Economic Forum is an opportunity to discuss, network, exchange ideas and 
experience to strengthen the European Chamber network and influence policy at all levels. 
Topics for debate include: Financing and facilitating start-ups; Internationalisation; New trends in Chambers; 
Female entrepreneurship in the digital age; Positioning Chambers in changing times and Reindustrialising 
Europe sustainably. 
The event will also enable participants to share common interests and ideas through a dedicated C2C 
(Chamber-to-Chamber) meeting system. 
Registrations are open until 14 October: last chance to join the largest platform for networking and 
benchmarking for Chambers of Commerce from all around Europe and beyond! 
Contact: EUROCHAMBRES Economic Forum team 
EUROCHAMBRES Economic Forum website 
C2C meeting system 
Companies and 
Entrepreneurship 
Competitiveness Council recognises the importance of the SME Envoy 
Network 
EUROCHAMBRES was encouraged that the Competitiveness Council of 26 September supported its recent 
recommendation to establish closer links with the SME Envoy Network. The ministers acknowledged the 
importance of reinforcing links and agreed to ask the SME Envoys to report annually on the implementation of 
the Small Business Act to the Competitiveness Council. As a strong advocate of better governance and more 
coherence in EU SME policy, EUROCHAMBRES welcomes this decision as a first step to ensure a clear, 
articulated and single approach towards small businesses at EU level. 
October 2013 

Contact: Typhaine Beaupérin-Holvoet Press Release 25 September 
EUROCHAMBRES’ position 
Public administrations in only two countries pay their bills within 30 days 
Precisely six months on from the deadline for the revised Late Payment Directive, EUROCHAMBRES on 16 
September lamented the fact that European businesses still on average wait 61 days to receive payments from 
public administrations, with peaks of 170 days in Italy and 159 in Greece. The widespread failure to respect the 
30 day maximum payment time stipulated in the directive highlights a shortfall in the delivery of businessfriendly 
policies and measures across much of the EU. EUROCHAMBRES underlined this SME policy 
underperformance in a letter to the Competitiveness Council, which met in late September, arguing that paying 
invoices on time is one of the easiest and most direct ways in which the public sector can help businesses. 
Contact: Iwona Mertin Press Release 16 September 
Map of Debtors on 30max website 
International Relations and 
Trade 
EUROCHAMBRES joins EU-Myanmar Task Force 
Invited by the Vice-Presidents of the European Commission Catherine Ashton and Antonio Tajani, 
EUROCHAMBRES will join a mission to Myanmar on 14-15 November, during which an EU-Myanmar Task 
Force will be established. The objective is to create a framework within which EU businesses can access the 
many opportunities offered by the recent opening up of this country. On that same week, the delegation will 
also visit Vietnam and Thailand. 
Contact: Daniel Sahr 
Support to EU-Indonesia economic cooperation 
On 13 November, the European-Indonesian Business Network (EIBN) will be launched in Jakarta, Indonesia. 
The initiative, supported by the European Union, aims to facilitate economic cooperation between the two 
regions, with a specific focus on small and medium enterprises. It will rely on the strengths of the already 
existing bilateral Chambers in Indonesia, EUROCHAMBRES as well as on the Enterprise Europe Network 
(EEN). 
Contact: Daniel Sahr 
Korea-EU Business Forum 
A first EU-Korea Business forum took place in Brussels on 27 September in Brussels thanks to the collaboration 
between EUROCHAMBRES and the Korea International Trade Association (KITA). Organised with the support 
of the Brussels Chamber of Commerce and Industry (BECI), the event marked the improvement of business 
relations between the two trading blocks, aiming at having an increased participation of European SMEs in the 
trade and investment flow with Korea. 
Contact: Daniel Sahr 
New guideline on tax liability in China 
The EU SME Centre in Beijing released a new guideline on “Tax liability for non-resident enterprises in service 
provision”. The guide provides information on whether or not European companies need to pay taxes in China 
when providing services to Chinese customers. It reflects the changes caused by the recent reform on the pilot 

collection of value added tax – in lieu of business tax – which was implemented countrywide on 1 August. 
Contact: Daniel Sahr Guideline on tax liability in China 
EU SME Centre website 
ETEC launched in India: where virtual meets reality 
On 10 September, the Bangalore office of the European Business and Technology Centre (EBTC) launched the 
European Technology Experience Centre (ETEC). The centre has been established to showcase European 
technologies – both physically and virtually – in order to facilitate collaboration and create a sustained 
knowledge exchange between the EU and India. An opportunity for European companies interested in 
showcasing their technology in India, and for Indian companies and investors wishing to experience EU 
technology “live”! 
Contact: EBTC team in Brussels ETEC webpage 
EBTC website 
Opportunities for European automotive sector in Saudi Arabia 
On 17-18 November, EUROCHAMBRES in cooperation with the German Chamber of Commerce in Saudi 
Arabia, will organise an investment conference in Riyadh, focusing on opportunities for the European 
automotive industry. The event is part of the ongoing EU-GCC Invest project coordinated by EUROCHAMBRES 
and supported by the European Union which aims to promote the initiation of a constructive investment 
dialogue between the EU and the Gulf Cooperation Council. 
Contact: Irma Orlandi EU-GCC Invest website 
EU-Brazil economic dialogue to be further developed 
President Alessandro Barberis will be part of a restricted delegation of European industry leaders joining 
Antonio Tajani, Vice-President of the European Commission responsible for Industry and Entrepreneurship, on 
a mission to Brazil on 10-11 October. The main objective of the mission is to further strengthen EU-Brazil 
relationship in a range of areas, such as research and innovation, SMEs and industrial cooperation. Mr 
Barberis will share the priorities of the EU-Brazil private sector working group, created in early 2013. 
Contact: Dominic Boucsein 
Global Chamber Platform to launch annual economic survey 
Meeting in Istanbul, Turkey, on 15 October, members of the Global Chamber Platform (GCP) will analyse the 
results of the Global Economic Survey. The survey looks at the global macro-economic challenges, and which 
are the best policy options to secure sustainable growth. The GCP brings together the major national and transnational 
Chamber organisations from the four corners of the globe (Africa Caribbean Pacific, Asia Pacific, China, 
Latin America, Middle East/Central Asia, Russia and the United States). 
Contact: Dominic Boucsein Global Chamber Platform webpage 
Innovation: Trends and Tools 
EUROCHAMBRES and BUSINESSEUROPE alarmed at revision of 
Environmental Impact Assessments 
On 9 October the European Parliament voted on the revision of the Directive on Environmental Impact 
Assessments (EIAs) – a planning instrument that ensures that certain projects undergo an evaluation of 
possible effects on the environment. EUROCHAMBRES and BUSINESSEUROPE have repeatedly pointed out 

that the Commission’s proposal and a number of amendments approved by the Parliament’s ENVI 
(Environment, Public Health and Food Safety) Committee, would significantly harm the EU as a business 
location. Though it is to be welcomed that some of the most severe shortcomings of the proposal have been 
rejected in plenary, many of the changes confirmed would still lead to long and bureaucratic authorisation 
procedures for investors. The business community now requests the support of the Council to drop the 
remaining unnecessary burdens. 
Contact: Michael Steurer Press Release 10 October 
EUROCHAMBRES/BUSINESSEUROPE joint letter to MEPs 
Chambers and European Commission discuss business-friendly Horizon 
2020 
On 2 October, EUROCHAMBRES and DIHK, - the Association of German Chambers of Commerce and 
Industry – co-organised a workshop with the European Commission to reflect on the implementation of Horizon 
2020, the European framework programme in the field of research and innovation. Gathering experts from 
national Chambers and partner organisations, the discussion focused on selection and evaluation criteria to 
foster business participation in research projects. 
Contact: Bettine Gola Horizon 2020 webpage 
Economic Affairs 
EUROCHAMBRES participates in European Commission’s SME Finance 
Forum 
EUROCHAMBRES took part in the SME Finance Forum organised by the European Commission on 24 
September, which marked the start of a series of events entitled the “EU Finance Days for SMEs”. The selected 
group of specialists from financial intermediaries and different stakeholder groups exchanged views with the 
European Commission, European Investment Bank and European Investment Fund on EU financial instruments 
constructed under the new Programme for the Competitiveness of Enterprises and Small and Medium-sized 
Enterprises (COSME) and Horizon 2020. 
Contact: Iwona Mertin SME Finance Days website 
EU Legislative Framework 
Chambers critical of proposal for mandatory CSR reporting 
In its comments on the European Commission’s recent proposal on non-financial disclosure EUROCHAMBRES 
has reiterated its opposition to a shift from the current voluntary approach to corporate social responsibility 
(CSR) reporting to a mandatory system. Chambers underline that CSR must remain a voluntary and businessdriven 
process and that compulsory reporting would undermine this philosophy. Chambers are also calling on 
policy makers to reject attempts to extend the scope of the directive to include country-by-country tax reporting 
and are demanding a more thorough analysis of the costs and benefits of imposing a mandatory reporting 
requirement on all large European companies and, indirectly, on their smaller businesses in their suppliers. 
Contact: Alexia Hengl 
EUROCHAMBRES’ position 

Richard Weber, elected new 
EUROCHAMBRES President as 
of 1 January 2014 
Richard Weber elected new 
EUROCHAMBRES President 
Richard Weber, President of the Saarland Chamber of Commerce 
(Germany) and Vice-President of EUROCHAMBRES, was today elected 
new President of the Association of European Chambers of Commerce 
and Industry with an overwhelming majority. He will take over this role as 
of 1 January 2014, succeeding Alessandro Barberis, President of the Turin 
Chamber of Commerce, who has held the Presidency since 2010 and who 
was appointed EUROCHAMBRES’ Ambassador. 
Mr Weber is also Executive Associate of the “Karlsberg Brauerei KG 
Weber”, Member of the board of the Association of German Chambers of 
Industry and Commerce (DIHK), and DIHK’s Special Advisor for European 
Affairs. 
In his investiture speech, Mr Weber said: “EUROCHAMBRES will have to 
play an important role in the years to come – as a strong voice and a 
visible, well-connected representative of the European Chamber network. 
If we succeed to effectively support and represent our member companies, 
we will strengthen EUROCHAMBRES and the Chamber network in general 
– in our home countries and at European level.” 
Mr Weber’s mandate will thus focus on three priorities: 
1 - Fostering EUROCHAMBRES as an inclusive and thriving European 
Chamber Network by reinforcing the contacts between its members and 
facilitating opportunities for them to learn from each other; 
2 - Positioning Chambers as competent partners in core areas such as 
SME representation, innovation, education and training; 
3 - Intensifying cooperation with other relevant European stakeholders. 
The election took place in Istanbul (Turkey) on 17 October, one day after 
the "EUROCHAMBRES Economic Forum which gathered hundreds of 
Chamber representatives from Europe and beyond on the theme "Investing 
in Growth!" 
Contact: Arnaldo Abruzzini 
Press Release 17 October 
Pictures of the Plenary Assembly 
New Deputy and Vice 
Presidents 
EUROCHAMBRES’ Plenary Assembly also elected three new Deputy and four 
new Vice Presidents 
New Deputy Presidents: Rifat Hisarciklioglu (Turkey), Martha Schultz (Austria) and Pierre Gramegna 
Special Edition - October 2013 

(Luxembourg). Deputy Presidents have a two-year mandate (2014-2016). 
New Vice-Presidents: André Marcon (France); Michl Ebner (Italy), Andrzej Arendarski (Poland); Miquel Valls i 
Maseda (Spain). Vice-Presidents have a one-year mandate (2014-2015). 
The newly-elected President Richard Weber also attributed a special mandate to Konstantinos Michalos 
(Greece) as Vice-President for Communication, and indicated Stephan Müchler (Sweden) as a suitable 
candidate for the Chairmanship of the Budgetary Committee. 
Report from EUROCHAMBRES 
Economic Forum 
"Investing in Growth!": Chambers proud to contribute 
Four areas need to be urgently addressed to ensure growth in Europe according to more than 200 
representatives of Chambers of Commerce and Industry from Europe and beyond who convened for the 
EUROCHAMBRES Economic Forum in Istanbul on 16 October: 
1 - Start-ups 
2 - Internationalisation 
3 - Female entrepreneurship 
4 - Industry 
"Chambers are key players in economic development and prime movers in delivering support to the business 
community," stressed President Alessandro Barberis. “They are willing to play a front-line role and make a 
substantial contribution to economic recovery.” 
Contact: EUROCHAMBRES Economic Forum team Press Release 17 October 
Pictures of the Forum Pictures of the Gala Dinner 
Video of the event the event EUROCHAMBRES Economic Forum website 
Report from Workshop 1 - Financing and facilitating start-ups 
Participants underlined the importance of capitalizing on the digital revolution and facilitating alternative forms of 
financing such as crowdfunding. They also encouraged entrepreneurs to invest in other entrepreneurs – 
becoming ‘business angels’ for the new economy. They argued that there is an urgent need of reforming 
national education systems and of promoting entrepreneurship education in schools. 
Contact: Ben Butters 
Report from Workshop 2 - Internationalisation 
Participants proposed to stimulate exchange of best practices among Chambers and to insist on a structural 
public-private partnership in the area of internationalisation, at regional, national and European level. 
Furthermore, they argued that it is of vital importance that member states join forces to improve cost efficiency 
and enhance leverage, also through the establishment of common European Business Centres in foreign 
markets. They also expressed the need of encouraging cross-cultural training to prepare smaller businesses to 
trade abroad. 
Contact: Dirk Vantyghem 
Report from Workshop 3 - New trends in Chambers 
Participants analysed how Chambers can become “prime movers” in an ever changing society, in consideration 
of the challenges we are confronted with: globalisation, demography, finance and energy. They argued that 
specific action must be taken to restore trust and to work on the visibility of Chambers. They stressed out the 
importance of being sustainable and economically viable, enhancing the two pillars of representing the interest 
of businesses at large while offering services to the business community. 

Contact: Arnaldo Abruzzini 
Report from Workshop 4 - Female entrepreneurship in the Digital Age 
Chambers expressed the need to untap Europe’s entrepreneurial potential, particularly among women. They 
proposed to disseminate good practices of member states and to raise awareness in relation to the socioeconomic 
value of digital female entrepreneurs. Chambers suggested investing in the further development of 
digital tools in support of women entrepreneurs and stressed the importance of encouraging digital literacy 
among women setting up a business. 
Contact: Ben Butters 
Report from Workshop 5 - Positioning Chambers in changing times 
Participants analysed how Chambers relate with their institutional and business environments. They shed a light 
on the importance of creating a “brand image” and of identifying Chambers’ Unique Selling Point. Furthermore 
they indicated that Chambers can – and therefore must – function as a bridge between governments and the 
business community. A question of survival has been raised and on how Chambers leaders can secure the 
future of the system. If Chambers will close down, who will cry? Would anyone be ready to re-open them? And 
to invest resources in Chambers? 
Contact: Arnaldo Abruzzini 
Report from Workshop 6 - Reindustrialising Europe sustainably 
Chambers stressed the need to reinforce and acknowledge the role of small and medium enterprises (SMEs) in 
industry. They underlined the importance of providing R&D and innovation support mechanisms to SMEs. They 
also called upon the EU institutions to back manufacturers with supportive, competitiveness-enhancing policies 
on energy and climate change. 
Contact: Ben Butters 
Global Chamber Platform 
Global Chamber Platform demands measures against threats for financial 
markets 
According to a survey conducted among Members of the Global Chamber Platform (GCP) and presented in 
Istanbul on 15 October, growth levels for 2014 will not be as robust as predicted by the World Bank. The report 
indicates the health of the financial system as the main challenge for global economy. Thus, GCP experts will 
elaborate a dozen concrete proposals to improve regulation governing the financial sector. “These proposals 
will be sent to political institutions, central banks and most importantly the G8 and G20,” announced Christoph 
Leitl, Honorary President of EUROCHAMBRES and GCP Chairman. 
Contact: Dominic Boucsein Press Release 15 October 
Press Release 16 October Global Economic Survey 2014 
Pictures of the GCP meeting 
Global Chamber Platform webpage 

European SME Week: 
when smaller businesses are top of the EU 
agenda 
European SME Week will be launched by the European Commission and Lithuanian Presidency on 24 
November. This will kick off a flurry of activities related to small and medium enterprises over the following 
days. 
While of course every week is SME Week for Chambers, EUROCHAMBRES will play an active role in 
these proceedings, which will revolve around the SME Assembly in Vilnius on 25-26 November and the 
Eastern Partnership events on 27-29. 
On this occasion, EUROCHAMBRES will present the findings of the second edition of its SME Test 
Benchmark, which will reveal whether the European Commission is itself respecting the ‘think small first’ 
principle in the way it drafts legislation. Secretary General Arnaldo Abruzzini will take part in the meeting of 
the national SME Envoys, where the network’s priorities for 2014 - a pivotal year for Europe’s economic 
recovery and for EU policy making - will be defined. EUROCHAMBRES will also contribute to the debate on 
SME Internationalisation, a key feature of Europe’s competitiveness strategy. 
SMEs will also be in the spotlight when evaluating three years of East Invest, an EU-funded initiative, 
managed by EUROCHAMBRES in partnership with Chambers and business organisations from all six 
countries of the Eastern Partnership (Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine). The 
programme has offered numerous opportunities for SMEs – and business-support organisations – to 
establish partnerships, be trained on EU acquis, to promote investment opportunities. The East Invest 
conference will take stock of the results and plan ahead. 
Contacts: Ben Butters, Dirk Vantyghem 
SME Week website 
2013 SME Assembly in Lithuania 
The third Eastern Partnership Summit in Vilnius 
Companies and 
Entrepreneurship 
Smart Regulation debated with Lithuanian Presidency 
EUROCHAMBRES took part in a 29 October breakfast panel discussion on ‘Smart Regulation for SMEs’ at the 
Lithuanian Permanent Representation to the EU alongside representatives of the European Commission and 
the Lithuanian Government’s EU Presidency team. EUROCHAMBRES called for improvements to both pre and 
post adoption measures to assess the impact of EU policy on smaller businesses, and raised doubts about the 
prevalence of the ‘think small first’ principle across the EU institutions. These discussions between policy 
makers and stakeholders on smart regulation will continue during the SME Assembly in late November, when 
EUROCHAMBRES will reveal the results of its second analysis of the application of the SME Test. 
November 2013 

Contact: Typhaine Beaupérin-Holvoet SME Assembly website 
EUROCHAMBRES calls for EU measures to minimise business failure and 
bankruptcy 
In its response to the European Commission’s consultation on a new approach to business insolvency and 
bankruptcy, EUROCHAMBRES reiterated that harmonisation of insolvency laws across Europe is not the cure: 
prevention should rather be the focus. Chamber best practices point to the need for the definition of common 
indicators to facilitate early identification of companies in difficulty and to set-up a European pilot project aimed 
at offering mentoring to entrepreneurs dealing with financial distress. Any proposal to shorten debtors’ 
discharge periods and to introduce out-of-court proceedings should only be pursued in case it ensures a 
balanced protection of creditors’ and debtors’ interests and following a thorough assessment of existing national 
frameworks. 
Contact: Alexia Hengl EUROCHAMBRES’ Position 
Public administration should be more business-friendly 
Secretary General Arnaldo Abruzzini took part in the 29 October European Commission high-level conference 
"The path to growth: achieving excellence in business friendly public administration". This followed on from Mr 
Abruzzini’s participation in a Competitiveness Council meeting on the same theme in July. During the 
conference, a group of banner waving protesters interrupted Commission President José Manuel Barroso’s 
speech to call for more citizen-friendly rather than business-friendly administrations, but this did not detract from 
EUROCHAMBRES’ core messages about prompt payments, minimal administrative burdens and pan-EU 
interoperability of procedures. 
Contact: Typhaine Beaupérin-Holvoet Conference website 
International Relations and 
Trade 
EUROCHAMBRES joins Mission for Growth to Myanmar, Vietnam and 
Thailand 
At the occasion of the organisation of the EU Task Force in Myanmar, EUROCHAMBRES will also take part in 
the Mission for Growth to Vietnam and Thailand on 12-16 November organised by the Vice-Presidents of the 
European Commission Catherine Ashton and Antonio Tajani. The aim is to reinforce synergies with countries of 
the dynamic ASEAN region with which the EU is currently deepening its relations. 
Contact: Daniel Sahr 
Mission for Growth to Myanmar, Vietnam and Thailand 
website 
Korean Business Association launched 
On 8 November, the Korean International Trade Association (KITA) inaugurated the Korean Business 
Association (KBA) aimed at promoting cooperation between Korean and European enterprises. In light of 
EUROCHAMBRES’ and KITA’s continuous collaboration, Secretary General Arnaldo Abruzzini underlined the 
importance of reinforcing shared values by strengthening economic diplomacy between the two regions. While 
welcoming the establishment of the KBA, Mr Abruzzini also stressed that in order to fully tackle the business 
interests addressed within the Free Trade Agreement, cooperation should be implemented ‘beyond its signing’. 
Contact: Irma Orlandi 
East Invest continues to promote investment opportunities with Eastern 
neighbours 

Some 100 businesses from Georgia and the EU are meeting in Tbilisi, Georgia, on 12 November, to discuss 
bilateral cooperation and investment opportunities in the framework of the East Invest project. A similar event 
will take place in Minsk, Belarus, on 5 December. 
Contacts: Birgit Arens ; Irina Tikhonova Investment conference Georgia 
Investment conference Belarus 
Investment opportunities in the six Eastern Partnership 
countries 
East Invest: end of phase one 
The East Invest final conference will be held in Vilnius, Lithuania, on 27 November, in the framework of the 
Eastern Partnership SME events. The members of the East Alliance, which implements the project, will be 
taking stock of the results of the first phase of the project, as well as looking towards the second phase with the 
contribution of high level speakers of the Lithuanian Government, the European Commission and the European 
Investment Bank (EIB). 
Contacts: Birgit Arens ; Irina Tikhonova East Invest website 
Building MENA-EU relationships 
On 19-21 November, the Sharjah Chamber of Commerce (United Arab Emirates) is organising the “MENA-EU 
Business Salon” (MENA= Middle East and North Africa). This will be an Academy style event where Chamber 
representatives from the EU and the Gulf Cooperation Council (GCC) will meet, exchange best practices, and 
develop joint cooperation. EUROCHAMBRES will support a limited number of EU Chambers (4 or 5) to join this 
event, using the EU-GCC Invest project. An opportunity for local Chambers with an interest in the Gulf region! 
Contact: Irma Orlandi MENA-EU Business Salon website 
EBTC celebrates fifth anniversary 
The European Business and Technology Centre (EBTC) celebrated its fifth anniversary with a conference in 
Brussels on 7 November, attracting over 75 participants from the Chamber network, the European Commission 
and the wider EU business and civil society communities. Participants, including MEPs Graham Watson and Jo 
Leinen, recognised the role that EBTC is playing in facilitating European companies’ access to India’s cleantech 
market and called on policy makers to tear down remaining market access obstacles. Two publications were 
also presented on this occasion. 
Contact: EBTC team in Brussels Press Release 8 November 
Video message from MEP Graham Watson EBTC’s 5 years achievements 
Doing business in India in cleantech sectors 
Education, Training and Social 
Affairs 
EUROCHAMBRES to participate in Paris Youth Employment Summit 
On 12 November, EUROCHAMBRES participates in the second Youth Employment Conference in Paris, 
gathering European Heads of State and Employment Ministers. The Chamber network’s written contribution to 
this follow-up on the July Berlin meeting contains a list of recommendations that – if implemented fast and 
effectively – should bring youth unemployment back to pre-crisis levels (just above 15%) within five years. 
Contact: Bettine Gola EUROCHAMBRES’ submission to the Youth 

Employment Conference 
Economic Affairs 
EUROCHAMBRES participates in Council High Level Group on 
Competitiveness and Growth 
EUROCHAMBRES took part in the Council High Level Group on Competitiveness and Growth on 6 November 
in Brussels, Belgium. Secretary-General Arnaldo Abruzzini took the opportunity to call on ministerial 
representatives for a more effective delivery of Europe 2020 reforms. Mr Abruzzini also highlighted two microeconomic 
elements of particular importance in restoring business confidence and prospects, namely the 
revitalisation of business financing and tackling the skills mismatch through the provision of effective vocational 
education and training (VET) schemes. 
Contact: Iwona Mertin 
Press Release 6 November 

 Better policy-making for the next EU legislative 
term 
In December 2003, the European Commission, Parliament and Council signed the Interinstitutional 
Agreement on Better-Lawmaking. In doing so, the three main EU institutions agreed to adhere to certain 
principles and processes in order to ‘optimise the drafting and implementation of Union law’. 
Ten years on, EUROCHAMBRES will hold a major event designed to take stock of what is now termed the 
‘Smart Regulation’ agenda and to consider more broadly areas for improvement in the policy-making 
process for the next five year EU legislative term. The 30 January half day conference, which will take place 
in the European Parliament, will be opened by EUROCHAMBRES’ new President (as of 1 January), Richard 
Weber, and closed by the President of the European Parliament, Martin Schulz, with contributions from a 
number of distinguished policy makers and observers in between. Find more details and the registration 
form via the links below. 
The importance of this discussion was underlined by the results of EUROCHAMBRES’ second SME Test 
Benchmark report, launched on 25 November during the SME Assembly in Vilnius. This revealed that the 
European Commission is still, in the majority of the dossiers analysed, failing to ‘think small first’ and take 
into account the costs and benefits of smaller businesses in the preparation of legislative proposals. These 
worrying findings are aggravated by the fact that the co-legislators, the European Parliament and Council, 
have largely forgotten about the Interinstitutional Agreement that they signed ten years ago and continue to 
amend Commission proposals without gathering evidence or considering the impact. 
The Chamber network insists that it is crucial that the impact on SMEs – 99% of all businesses – of new 
policy measures is thoroughly assessed and factored into the policy-making process and the new 
EUROCHAMBRES report contains various recommendations to this effect. It is critical to the process of EU 
economic recovery and growth that policies are prepared on the basis of strong evidence and thorough 
consultation with the business community, with particular efforts made to reach SMEs. This will certainly be 
one of the key issues discussed on 30 January and EUROCHAMBRES will continue to hold the EU 
institutions to account on smart regulation in the new period. 
Contacts: Typhaine Beaupérin 
Programme of the event 
Attend the event 
The SME Test Benchmark Report 

Entrepreneurship 
2013 SME Assembly: EUROCHAMBRES priorities for the future SME policy 
Speaking at the SME Assembly and SME Envoy Network meeting in Vilnius, on 25 and 26 November, 
EUROCHAMBRES’ Secretary General, Arnaldo Abruzzini, reiterated its support for the Small Business Act 
(SBA) adopted five years ago and the necessity to keep access to finance, cutting red tape, access to markets 
and entrepreneurship top on the EU agenda. While the priorities remain valid, implementation of existing 
legislation, fast delivery and monitoring must be the focus of the new SME support strategy under the new 
Commission. The governance needs to be improved through a better connectivity between the Competitiveness 
Council, the SME Envoy Network and the High Level Group for Competitiveness. 
Contact: Typhaine Beaupérin 
EUROCHAMBRES’ Position 
Launch of EUROCHAMBRES SME Test Benchmark 
EUROCHAMBRES SME Test Benchmark 2013, presented at the SME Assembly in Vilnius, shows a clear gap 
between the Commission’s ambition to anchor the ‘Think Small First’ principle in policy-making and its delivery. 
Around 43% of the impact assessments analysed show the Commission’s failure to consider smaller 
businesses and almost two-third do not include a thorough cost-benefit analysis for SMEs. EUROCHAMBRES 
urges José Manuel Barroso, President of the Commission, to use the final months of his mandate to put in 
place stricter mechanisms to guarantee an efficient and robust application of the SME test across the 
directorates-general. EUROCHAMBRES puts forward several recommendations in its report to accelerate 
progress and engage in a constructive dialogue with the EU Institutions. 
Contact: Typhaine Beaupérin Press Release 25 November 
SME Test Benchmark Report 
EUROCHAMBRES’ final requests for 2014 Enterprise Europe Network call 
for proposals 
In a letter sent to Antonio Tajani, Vice-President of the Commission, EUROCHAMBRES has called for the 
reinforcement of the principles of complementarity and additionalitly in relation to the Enterprise Europe 
Network (EEN)’s activities at European and international levels. The letter recommends allowing members of 
EEN to involve their long-term co-operation partners based in other member states in the delivery of services 
and to work with counterpart organisations that have a European ownership or legitimacy in third countries, i.e. 
European business centres or bilateral/European Chambers in third countries. EUROCHAMBRES also calls for 
a strengthening of the governance of the network post-2014 through the Consultative Forum, whose existence 
should be formally recognised in the future EEN call for proposals. 
Contact: Typhaine Beaupérin 
Chambers push for immediate actions on Industrial Policy 
While endorsing the European Parliament Industry, Research and Energy (ITRE) Committee’s vote of 28 
November on the Bütikofer report, EUROCHAMBRES reiterated the need for immediate actions to boost the 
reindustrialisation of Europe. In particular, Chambers urged EU policy makers to adopt effective measures on 
reducing red tape and to reverse the trend of rising energy prices. Moreover, Chambers highlighted the need 
for Vocational Education and Training schemes (VET) to be established across the EU, based on a 
combination of classroom and work-based learning. EUROCHAMBRES now calls on the European 
Parliament’s plenary to follow the ITRE Committee’s lead and to provide a clear political commitment to the EU 
as an industrial production location. 
Contact: Michael Steurer Press Release 28 November 
EUROCHAMBRES 10 Point-Programme EP draft report on Reindustrialising Europe 

International Relations and 
Trade 
The launch of the EU-Indonesia Business Network 
On 11 November, EUROCHAMBRES participated in the official inauguration of the EU-Indonesia Business 
Network (EIBN) in Jakarta, to actively support Indonesia in its efforts to improve the business and investment 
climate, as well as intensify EU-Indonesia business relationships. As a member of EIBN, EUROCHAMBRES 
will support the network in order to reach out to companies on a European level. 
Contact: Daniel Sahr Press Release 13 November 
EUROCHAMBRES presents policy recommendations for the EU Task Force 
to Myanmar 
On 29 November, in the framework of the EU Task Force to Myanmar, EUROCHAMBRES’ President, 
Alessandro Barberis, presented to the EU Vice-President Tajani a joint statement signed together with the 
Union of Myanmar Federation of Chambers of Commerce and Industry. The statement contains concrete 
recommendations for a better business environment and raises the priority issues to be tackled. It also 
highlights several fields of possible EU-Myanmar cooperation. 
Contact: Daniel Sahr Declaration for the EU Task Force to Myanmar 
A better framework for innovation and investment in China 
On 21 November, EUROCHAMBRES President, Alessandro Barberis, spoke at the EU-China Business 
Summit 2013, in front of political and business leaders from both sides. He called for a better framework to 
promote innovation and investment in China. 
Contact: Daniel Sahr Press Release 21 November 
EUROCHAMBRES represents the EU SME Centre in France 
From 19 to 21 November, the EU SME Centre expert from EUROCHAMBRES joined three seminars in the 
French Midi-Pyrénées region and gave training on opportunities for French SMEs in China. The focus was on 
the export of food and beverages, cosmetics, decoration and tableware. 
Contact: Daniel Sahr Newsletter CCI Midi-Pyrénées 
The business contribution to the Eastern Partnership dialogue 
On the occasion the Eastern Partnership events in Vilnius from 25 to 29 November, East Invest was highlighted 
several times as the business contribution to building bridges and promoting trade between the EU and Eastern 
Partnership countries. The East Alliance partners were furthermore pleased to learn that there would be 
second phase from spring 2014 onwards. 
Contact: Birgit Arens Irina Tikhonova Press Release 27 November 
Pictures of the Event 
East Invest – Promoting investments with Belarus 
On 5 December, the Belarus Chamber of Commerce organized and hosted an East Invest Investment 
conference. This event gathered European and Belarus investment agencies and SMEs for an exchange of 
best practices in the field of investment promotion and B2B meetings between interested partners. 

Contacts: Birgit Arens Irina Tikhonova East Invest Initiative 
Investment Conference in Belarus Investment opportunities in the six EaP countries 
Enhanced Cooperation between EU and the Gulf Cooperation Council 
Given the success of the EU-GCC Invest’s promotional activities – most recently in Riyadh and Sharjah – 
EUROCHAMBRES is organizing a High Level Policy event on 17 February at the European Parliament. The 
aim is twofold: to bring the Project’s concrete achievements closer to EU Policy Level, and to gather relevant 
EU and GCC stakeholders in order to strengthen the dialogue between the two blocs. The conference will cover 
EU-GCC existing achievements and issues, as well as explore future challenges and opportunities relevant to 
the business community and policy makers. 
Contact: Irma Orlandi 
EBTC’s IPR Helpdesk joins the European IPR Helpdesk 
EUROCHAMBRES was invited at the European Intellectual Property Rights (IPR) Helpdesk Stakeholder 
Meeting, on Tuesday 26 November, organised by DG Enterprise and Industry to present outreach strategies to 
reach SMEs and to introduce the IPR Helpdesk of the European Business and Technology Centre (EBTC). As 
a concrete outcome, the EBTC’s IPR Helpdesk is now incorporated in the family of European IPR Helpdesks to 
the benefit of European companies aspiring to do business in India. 
Contact: EBTC team in Brussels European IPR Helpdesk 
IPR Helpdesk of EBTC 
EUROCHAMBRES keen to see a truly SME friendly Transatlantic Trade and 
Investment Partnership 
With negotiations for the TTIP picking up pace in view of a first stock-taking exercise between Commissioner 
De Gucht and US Trade Representative Mike Froman at the beginning of next year, EUROCHAMBRES will 
continue to stress the importance of designing an SME friendly agreement. In this sense, EUROCHAMBRES 
will submit an updated set of recommendations to policy makers to help SMEs effectively reap the benefits 
from this important agreement. 
Contact: Dominic Boucsein 
Economic Affairs 
Competitiveness Council: mixed conclusions, but thumbs up for Lithuanian 
coordination 
The 2-3 December Competitiveness Council conclusions generated a mixed reaction from EUROCHAMBRES. 
The internal market text’s focus on implementation of existing legislation was applauded and 
EUROCHAMBRES agreed that better enforcement of internal market rules should be integral to the structural 
reform agenda. But the co nclusions on smart regulation were considered less convincing, failing to show signs 
of progress or noteworthy new actions. EUROCHAMBRES paid tribute to the pragmatic, inclusive way in which 
the Competitiveness Council has been run during the Lithuanian Presidency semester and encouraged Greece 
and subsequent Presidencies to continue along the same lines. 
Contact: Ben Butters Press Release 3 December 
EUROCHAMBRES Economic Survey 2014 reveals growing optimism for 
year ahead 
The 21st annual Economic Survey (EES) was launched on 20 November, revealing a sense of optimism for the 

year ahead across much of the European business community. The feedback from over 59,000 companies in 
25 countries also points towards increased sales, although employment and investment forecasts remain 
cautious. While the net results are encouraging, there are considerable disparities between the most positive 
and most negative countries for all of the indicators. 
Contacts: Iwona Mertin Press Release 20 November 
EES Online Map EES 2014 
Mediterranean perspective for SME Financing 
On 15 November, EUROCHAMBRES spoke in an event of the Mediterranean Bank Network and Malta 
Business Bureau on the Financial Instruments – Key to the future of SMEs. The workshop was another 
opportunity to point out the main obstacles to the SME financing and indicate potential solutions such as 
guarantees. 
Contact: Iwona Mertin 
EUROCHAMBRES participates in the Vienna Initiative working group 
EUROCHAMBRES took part in the working group of the European Bank Coordination “Vienna” Initiative to 
discuss aspects related to credit enhancement schemes. The meeting took place in Luxembourg, on 25 
November, at the premises of the European Investment Bank and provided a platform to present 
EUROCHAMBRES’ established positions, notably on the importance of effective guarantee schemes for SME 
lending. 
Contact: Iwona Mertin Vienna Initiative 
EUROCHAMBRES speaks at the Brussels Tax Forum 
On 18 November, EUROCHAMBRES spoke at a major event on taxation, organised by the European 
Commission, DG Taxation and Customs Union. EUROCHAMBRES highlighted some of the key challenges for 
businesses related to forthcoming changes in EU legislation on VAT and VAT compliance. 
Contact: Iwona Mertin Brussels Tax Forum 

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