We are FCC - Nº6

With regard to structure, the Group sought to eliminate duplication and excess costs by aggregating service and bidding capabilities Group-wide in certain areas, while enhancing control in other areas within each bu- siness unit. This increased profitabi- lity and operating cash flow by redu- cing structural and corporate costs, making the Group more competitive to meet client demands. The EBITDA margin increased to 14.1% in 2017, from 12.7% in 2014, and structural costs were reduced in cumulative terms by 150.5 million euro, i.e. by 42.1%, in the same period. As for finance, Grupo Carso provided vital leadership in a process of en- hancing the capital structure through two capital increases, in December 2014 and March 2016, totalling 1,709 million euro. This enabled the Group to restructure its interest-bearing debt, reduced by 2,943 million euro (62.8%) between the date of the first capital increase and December 2017, while the average cost of debt dro- pped to 2.4% (from 5.1%) in the same period. The debt maturity was exten- ded to five years. Action in these three areas turned the FCC Group around, leaving it with a solid financial structure, in which debt plays an appropriate role underpinning operations that are more profitable, more integrated and more synergistic, all supported by a leaner corporate structure. The re- sults in the first quarter of 2018 con- firmed these achievements, as the FCC Group reported its highest-ever level of operating profitability, 15%, coupled with a substantial 135% in- crease in net attributable profit. International expansion International expansion is a vital goal of the FCC Group’s business areas. The Group has the experience and a suitable positioning in products and services to achieve this objective, enabling it to be more competitive in markets where there is strong de- mand for infrastructure and services in both developed and emerging economies, while respecting the en- vironment. The circular economy, new technolo- gies, transport connectivity in urban areas, waste recovery and treatment, a quality water supply and the need for infrastructures are opportunities that the Group is equipped to seize in order to expand while contributing to sustainable improvement of life on Earth. In the area of Environmental Services, the Group retained its market share in its traditional markets and activities while identifying new growth regions, such as the US. Following steady growth in the number of waste treat- ment and recycling plants, the Group had over 300 worldwide at 2017 year- end. Government targets for higher waste recovery and reuse offer exten- Pablo Colio, CEO of the FCC Group F C C G R O U P 6 F C C G R O U P