Salini Costruttori SpA: SWOT Analysis & Company Profile by BusinessReview

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									Salini Costruttori SpA


Salini Costruttori SpA: SWOT Analysis &
Company Profile

Reference code: CN0053CP

Published: Feb 2011

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Salini Costruttori SpA - SWOT Profile                                               Page 1
Salini Costruttori SpA


Salini Costruttori SpA - Company Overview

Salini Costruttori SpA (Salini) is a construction company specializing in large-scale construction projects. The services of
the company ranges from designing, engineering and scheduling to construction management and project delivery. Salini
caters its services for building roads, railways, motorways, hydroelectric plants, dams, civil and industrial building and
tunnels. The company undertakes projects in water and energy, civil and industrial buildings, transport and multipurpose
integrated sectors, among others. It is also involved in project financing. The company operates in 39 countries across the
four continents: Asia, Europe, Africa and Latin America. Salini is headquartered in Rome, Italy.

Financial Performance

The company reported revenue of EUR1,155.7 million during the year 2009. The company's revenue grew at a CAGR of
32.7% during the period 2007-2009 with a year on year growth of 56.8% over fiscal year 2008. During the fiscal year
2009, its operating margin was 2.07% as against the operating margin of 6.50% during the fiscal year 2008.

Salini Costruttori SpA - Key Facts

Salini Costruttori SpA, Key Facts

                                  Via della Dataria, 22, Rome, ,
                                                                    Ticker Symbol, Stock
Corporate Address:                00187, Italy

Telephone                         + 39 06 67761                     No. of Employees               13,000

Fax                               + 39 06 6776288                   Financial Year End             December

URL                                          Revenue (in EUR Million)       1,155.70

Industry                          Construction                      Revenue (in USD Million)       1,699.56

                                  China, Kazakhstan, Malaysia, Albania, Bulgaria, Czech Republic, Denmark, Greece, Hungary,
                                  Ireland, Italy, Poland, Romania, Turkey, Ukraine, Algeria, Ethiopia, Gabon, Ghana, Guinea, Jordan,
Locations                         Liberia, Libyan Arab Jamahiriya, Malawi, Morocco, Nigeria, Sierra Leone, Somalia, Sudan, Tunisia,
                                  Uganda, Zimbabwe, Argentina, Brazil, Chile
Source: Annual Report, Company Website, Primary and Secondary Research


Salini Costruttori SpA - SWOT Profile                                                                                      Page 2
Salini Costruttori SpA


Salini Costruttori SpA - Business Description

Salini Costruttori SpA (Salini) is a construction company specializing in large-scale construction contracts. The company
is engaged in providing comprehensive integrated range of services catering to diversified sectors. Salini has experience
in building roads, railways, motorways, hydroelectric plants, dams, civil and industrial building and tunnels. The company
is also involved in project financing.

Salini operates with four reportable segments, namely, water and energy, transport infrastructure, civil building
construction, and real estate and others.

In the water and energy segment, the company operates in construction of hydroelectric dams and water treatment. The
company has built more than 20 large dams and has hydroelectric projects under construction with power generation
capacity of more than 3000 MW. Some of the hydroelectric dams and systems projects undertaken by the company
include China - Henan / Xiaolangdl dam; Ethiopia / Emergency Dire Dam Project; Ethiopia - Beles 1,025 dam; Italy -
Potenza / Genzano dam; Uganda - Owen falls hep extension project; Zimbabwe - Matabeleland / Zhovne dam; and
Guinea - Garafiri dam. The hydroelectric plants segment contributed 53.8% of total revenues during fiscal 2009.

Under the transport infrastructure segment, the company constructs major transport infrastructure facilities such as roads
and motorways, bridges and viaducts, railways and undergrounds, airports and ports, and harbor, among others. Its
roadways and motorways projects include Ethiopia - Chida - Sodo feeder road, Uganda - Construction of Kamapala
northern by pass, Sierra leone - Road rehabilitation and maintenance project in Tayama and Sudan - port Sudan road
rehabilitation project. Some of the bridges and viaducts constructed by the company include Veneto bridge in Italy,
Guinea - Bridge over the Niger river and Ethiopia - Chida-Sodo feeder road / bridges. Additionally, it also developed
various railway lines and airports in both domestic and international regions including Italy - High Speed Railway Milan -
Naples: „Nodo di Bologna‟; Gabon - Trans-Gabon railway; Italy - Railway Roma-Pantano; Bergamo airport in Italy; Libya -
Sarir / New airport; and Italy - Rome / Control tower Fiumicino International Airport. The Transport Infrastructure segment
contributed a significant portion towards its revenue accounting for 42.1% of the total revenues in 2009.

The company through its civil building construction segment is involved in construction of complex buildings. In this
segment, the company is engaged in constructing and developing hospitals, universities, institutional and government
offices, among others. Some of Salini‟s projects include Hotel Minerva, Restructuring of ex barrack Sani and The Zeis
multiuse complex in Rome, Italy, as well as Thermoeletric Station in Brindisi, Italy, and Textile Plant in Ain Beida, Algeria.
The segment accounted for 2.7% of the total revenues for fiscal year 2009.

In the real estate and other segment, the company deals with real estate operations and carries out and manages large-
scale integrated projects including roads, buildings, water works and industrial structures which are a part of territorial
development. In difficult socio-economic situation such as draught or famines, the company intervenes with several
projects in collaboration with the government or with support of International Organizations to deal with the issues related.
The Real Estate and Other segment has accounted for 1.4% of the total revenues of the company.

Geographically, the company is divided into three regions, namely, Europe, Asia and Africa. In 2009, Africa accounted for
50% of the total revenues, followed by Europe with 38% and Asia with 12%.

Currently, the company has 4
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