Diapositiva 1 - Ferrovial · Ferrovial overview. 1. Overview. 2. What are investors worried about?...

1

ferrovialGrowing Infrastructure

ferrovial App

FY 2017

Ferrovial overview1. Overview2. What are investors worried about?3. Looking ahead4. What makes Ferrovial different?

Ferrovial 2017 Results

Additional InformationA. Main value driversB. Main infrastructure assets

a. 407ETRb. Managed Lanesc. 407ETR vs Managed Lanesd. Airports

C. Capital Market Day (CMD) 2017 D. Historic dataE. Non Financial Information

Table of Contents

3

Solutions to CONGESTION

Narrowing THE GAP betweenpublic budgets & huge infrastructure needs

World leading private infrastructure provider present in toll roads, airports and cities

€12,208mn €1,341mn

NET CASH*

+13.5%€999mn €32,063mn

OP. CASH FLOW* ORDER BOOK**REVENUES

€13,858mn+11.3%

MARKET CAP

Figures as of FY 2017 (Market cap from Dec 2017)* Ex-Infrastructure projects ** Construction and Services, Including JVs

4

Design Financing OperatingBuilding Maintaining

ConstructionServices

EX-INFRASTRUCTURE PROJECTS

Toll Roads Airports

INFRASTRUCTURE PROJECTS

1. Ferrovial OverviewPresent in the whole value chain of infrastructure

5

26%

23%

38%

13%

1. Ferrovial OverviewCash Flow generation: Balanced Contribution

OPERATING CASH FLOW

Construction

Airports

Toll Roads

Services

2017 figures



€277mn €237mn

€423mn €199mn

EBITDA

DIVIDENDS€515mn

€622mn

6

TOLL ROADS*

€4,729mn

* €844mn related to NTE 35W & I77, toll roads under construction.

NET CASH €1,341mn

NET DEBT €4,804mn



2017 figures

ferrovial

Net Cash Position ex-InfrastructureNet Debt ring-fenced to infrastructure assets

NET DEBT €3,463mn

1. Ferrovial OverviewGroup Financial Structure

7

1. Ferrovial OverviewFocus on Six Main Markets

CANADAUK

SPAIN

POLAND

Construction

Airports

Toll Roads

Services

USA

AUSTRALIA

407 ETR toll road407 East Extension Phase I & II

Managed Lanes: NTE, LBJ, NTE35W, I-66, I-77Denver Great Hall ProjectCalifornia High Speed RailwayGrand Parkway

Heathrow airport, Aberdeen, Glasgow &

Southampton airportsCrossrail projectThames Tideway TunnelNetwork RailSevern Trent water

Warsaw 7 roads modernizationTurow power stationGdansk roads network

Toowoomba roadPacific highway roadMelbourne roads network

Autopista del SolTerrassa-Manresa toll roadMichelin plantsValdecilla Hospital

8

525

18,614

1999 Dec'17

Tariff freedomTariff flexibility80 years to maturity

CAGR (2007-17)Tariffs EBITDA

+9% +10.5% 100% payback first 10Y

LONG DURATION & PRICING FLEXIBILITY

Canada, Greater Toronto108 kms

Alternatives strongly congestedFast & reliableFree flow, fully electronicStrong collection security

43%, Equity method

DIVIDEND GROWTH (CADmn) LEVERAGE (X EBITDA) EQUITY VALUATION 100% (€mn)

1. Ferrovial Overview407ETR

120 135190

300

460

600680 730 750 790

845

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

27.1X

6.3x

1999 2017Analyst consensus

9

Dynamic tollingTariff freedomTariff flexibility

43 years to maturity

LONG DURATION & PRICING FLEXIBILITY

Texas, USA

Higher speed allowedFree flow, fully electronic

No collection risk

2 in operation: NTE 63%, LBJ 55%. Global Consolidation. 3 under construction: NTE 35W 54%, , I-66 50%, I-77 50%

+10.6%*NTE

+10.2%*LBJ

+32.6%*NTE

+37.4%*LBJ

TRANSACTIONS (mn) EBITDA (USDmn)

1. Ferrovial OverviewManaged Lanes

* Growth 2017 vs 2016

38

57

75

2015

2016

2017

59

80

2016

2017

20

24

27

2015

2016

2017

38

41

2016

2017

10

82% of passengers rate their experience in Heathrow as “Excellent” or “very good”

Best airport Western Europe (3rd consecutive yr)

Best airport for shopping (8th consecutive time)

Continued improvements in security, punctuality & bag-gage performance

471,082 annual flights204 destinations >30% UK exports (1.7mn tonnes)

Strong traffic performance in 2017+3.1%, 78mn passengers

Operating at over 98% capacity

Runway 3: Gov green light Oct 25th 2016

THE BUSIEST AIRPORT…

SERVICE STANDARDS STRONG EBITDA GROWTH (£mn)

… WITH HIGH SERVICE STANDARDS

2008-2016 CAGR : +9.8%

London, UK, Ferrovial stake 25%, Equity methodTime based separation

landing at Heathrow

1. Ferrovial OverviewHeathrow Airport

63%

80%

2007 2017

Punctuality

48%

82%

2007 2017

% Passengers rating Heathrow as Excellent or Very Good

756885 967

1,132 1,1541,421

1,559 1,605 1,683 1,760

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

https://www.youtube.com/watch?v=2jBvbpbq0SM

11

Services: Recurrent CF generator with long duration order book, providing long term visibility

1. Ferrovial OverviewConstruction: Proven competitive tool for successful int’l bidding for complex greenfield infra projects

By Geography By Work

Video on Viaducto de Erques construction

Civil engineering, industrial, building & water projectsComplex projects & broad diversification between sectors

EBITDA 2017

BUDIMEX: Biggest Polish constructor

WEBBER: Leader in Texas road construction

F. AGROMAN: International strategic markets & Spain

Diversified portfolio in public & private sector (maintenance & operation of infra for transport, environment, industry, natural resources and utilities; provision of facility mgmt services)

Video on F. Services

BROADSPECTRUM: A platform to grow in Australia (& New Zealand)

SPAIN: stable profitability. Local government, environmental mgmt & treatment, infrastructures.

INTERNATIONAL: USA, Chile (BRS Americas), Poland & Portugal.

UK: Utilities, Facility mgmt, Highways, Consulting, Rail & environmental services

ORDER BOOK 2017

EBITDA 2017

By GeographyORDER BOOK 2017

20%

47%

28%

4%International

Broadspectrum

Spain

UK

66%

18%

16%Agroman

Webber

Budimex

77%

3%12%

7% Civil work

Residential work

Non-residentialworkIndustrial

12%

22%

45%

7%14% Spain

PolandUSUKRotW 47%

25%

20%

7%

UKSpainBroadspectrumInternational

https://www.youtube.com/watch?v=nY6dXUc2Ims

https://www.youtube.com/watch?v=R4ihbX_lhWI

12

2. What are investors worried about?

Ferrovial looks expensive in multiples

… but cheap in private transactions

Negative reaction to reported results

Growing results in Infrastructure & bottoming out in Contracting

Exposure to UK Services sector … is negligible in valuation

Impact from potential interest rate hike

… is positive. Our assets amplify economic growth

Cash Flow generation vs dividends to shareholders

Growing dividends from infrastructure

13


Airports

Toll Roads

Much of our value is in Equity Consolidated assets

407 ETRHeathrowAberdeen, Glasgow & SouthamptonIrish, Portuguese & Greek toll roadsSerranopark, A66

2017 figures

… but contribute 0% to

Revenues & EBITDA

VALUE

(€510mn)

64%

51%

OCF

Ferrovial looks expensive in multiples

14

€932mn €1,733mn

2017 figures

PROPORTIONAL EBITDAFULLY CONSOLIDATED EBITDA

33% Infrastructure 67% Infrastructure

Services

Reported figures don’t reflect Ferrovial’s Business

Toll Roads ConstructionAirports


21%

45%

34%

-1%8%

25%

36%

31%

Negative reaction to reported results

15

PROPORTIONAL EBITDAVALUATION

UK Services represents little of our results & valuation

3% of valuation 5% of EBITDA

Dec 2017

2. What are investors worried about?Exposure to UK Services sector

2017 figures

16

Our assets AMPLIFY ECONOMIC GROWTH

PRICING POWER leads to benefit from better economic conditions

Positive exposure to INFLATION

DERISKING at our US assets should lead to lower discount rates

95% of our infrastructure debt is FIXED, 92% at Consolidated level

We can REFINANCE MANAGED LANES DEBT at better rates

2. What are investors worried about?Impact from potential interest rate hike

17

EBITDA FROM CONTRACTING is bottoming out

GROWING DIVIDENDS from infrastructure projects

2. What are investors worried about?CF Generation vs dividends to shareholders

18

High complexity concessionsGreenfieldTraffic risk

Dynamic tolling

Texas, USA

WHAT WE FOCUS ON

Population growthEmployment growth

High household incomeCongestion

Value of time / willingness to pay

WHERE THIS MODEL WORKS

3. Looking ahead

Mitigating risks in contracting

Capital allocation focused on infra projects,

mainly in the US

NTE & LBJ to pay dividends in 2019-2020

19

PRICING POWER & FLEXIBILITY

VALUE CREATION FROM DERISKING & ROLLING

FORWARD

KNOW HOW IN DEMAND SEGMENTATION

ATTRACTIVE SHAREHOLDER REMUNERATION

UNIQUE TRANSPORTATION INFRASTRUCTURE ASSETS & CAPABILITIES

4. What makes Ferrovial different?






Table of Contents

21

c.€1bn Operating Cash Flow (pre-tax)

€781mn Activity Cash Flow (after tax)

€520mn FER shareholder remuneration

€1,341mn net cash position (€500mn hybrid bond issuance)

Excellent growth from our infrastructure assets

Traffic increased across the board

EBITDA grew at double digit in our main assets

Higher dividends from 407 ETR, LHR & AGS

Solid cash generation & financial position

ex-infra projects

Ferrovial 2017 resultsHighlights

Addressing contracting

Our infrastructure assets outperform in times of economic growth & inflation

Reported figures don’t fully reflect FER’s business. More information on assets consolidated under equity method

Share Price has underperformed vs peers

22

38%13%26%23%

Ex- Infrastructure Projects

49% DIVIDENDS FROM INFRA PROJECTS

AIRPORTS SERVICES

51% OCF FROM CONSTRUCTION AND SERVICES

TOLL ROADS CONSTRUCTION

Ferrovial 2017 resultsStrong Cash Flow Generation

OPERATING CASH FLOW pre-tax 2017Toll roads (Dividends) 277Airports (Dividends) 237Services 396Construction 134Others -46TOTAL 999

999

261

(102)(115)

520

Operating Cash Flow(pre-tax)

Net Investment Taxes Activity Cash Flow

Activity Cash Flow

€781mn

Shareholder remuneration

FROM OPERATING CF TO ACTIVITY CFOPERATING CF

BALANCED CONTRIBUTION TO OPERATING CASH FLOW

€mn

23

2017 % % LfLRevenues 461 -5.3% +15.7%EBITDA 320 +7.7% +23.8%

Traffic growth in main markets

Solid financial results in LfL terms:

• EBITDA +23.8%

• +€19mn positive impact from success fees

€277mn dividends from toll roads

• 407 ETR dividends: €262mn

Cintra acquired 6.3% in NTE & 3.6% in LBJ ($107mn)

• Ferrovial now holds 62.97% in NTE & 54.6% in LBJ

Mature asset rotation to crystalize value:

• Sale of 51% stake of Norte Litoral: €104mn

• Sale of 49% stake of Algarve: €58mn

TRAFFIC EVOLUTION

DIVIDENDS FROM TOLL ROADS

FY 2017 RESULTS TOLL ROADS

Canada407ETR: +2.6%

US*

NTE +10.6%LBJ +10.2%

SpainAusol I

+10.3%

€162mn cash in€98mn net capital gains

* Transactions

Ferrovial 2017 resultsToll Roads

217 224 242 244 262

25 31 25 46 15242 255 267 290 277

2013 2014 2015 2016 2017407ETR OTHERS

€mn

24

Equity method, Ferrovial stake 43%

Much better than expected 4Q 2017 traffic growth despite a difficult comparison in 2H 2017

1Q 2018 dividend announced (+9% vs 1Q 2017)

Global consolidation

• EBITDA +32.6%

• TRAFFIC* +10.6%

• TARIFF** +13.2%

• EBITDA +37.4%

• TRAFFIC * +10.2%

• TARIFF ** +20.5%

* Transactions** Average toll rate per transaction

Ferrovial 2017 results407 ETR Managed Lanes

NTE

LBJ

(CADmn) 2017 %Revenues 1,268 +11.7%EBITDA 1,104 +12.1%EBITDA mg 87.1%

Traffic (VKTs'000) 2,708,589 +2.6%Dividends 845 +7.0%

38

57

75

2015 2016 2017

EBITDA (USDmn)

59

80

2016 2017

EBITDA (USDmn)

25

Ferrovial 2017 results407 ETR: 58% good or very good value for money

7%

3%

3%

5%

4%

4%

3%

2%

2%

57%

56%

55%

51%

47%

43%

41%

38%

31%

5%

9%

9%

8%

7%

5%

8%

6%

6%

13%

20%

21%

22%

26%

31%

28%

25%

38%

Public transit

A typical fast food restaurant

407ETR

Your internet service

Airplane travel

your cell phone bill

your electricity bill

Taxis

Your cable TV bill

Very good good neither good nor bad not very good poor don't know / don't use

26

HAH• Traffic: 78mn pax (+3.1%)

• Revenues: +2.6% Higher traffic & retail, despite lower aeronautical tariffs

• EBITDA: +4.6% on cost control

• Higher-than-expected dividends: £525mn (£150mn extraordinary dividend).

AGS• Strong traffic growth (+4.9%)

• EBITDA +10.7%EBITDA since acquisition (2014): +35%

• Dividend: £146mn post refinancing (£75mn extraordinary)

Dividends received by FER: • €237mn (€134mn 2016).

Denver International Airport• 6th busiest airport in the US by passenger traffic• Redesign & retail operation of main terminal (34y)

(PAX mn)TRAFFIC

(Equity method, FER stake 25%)

(Equity method, FER stake 50%):

DIVIDENDS (100% £mn)

Ferrovial 2017 resultsAirports

2017 % LfLHeathrow 78.0 +3.1%AGS 15.1 +4.9%

Glasgow 9.9 +5.7%Aberdeen 3.1 +1.9%Southampton 2.1 +6.1%

375

150300 325

525

2015 2016 2017

HAH DIVIDENDSOrdinary Extraordinary

71

7560 64

146

2015 2016 2017

AGS DIVIDENDSOrdinary Extraordinary

27

Revenues +16.3% with FY integration of BRS

EBITDA margin 6% (5.4% in 2016)

Order book -11.3% LfL (selective bidding in UK)

€396mn Operating Cash Flow

UK: Still challenging environment

• EBITDA ’17 mg (3.5%) in line with guidance provided

• EBITDA’18E mg : ex-Birmingham (2% - 3%)

AUSTRALIA: FY integration vs 7months in 2016

• 2017: EBITDA mg 5.5% (RPC* contracts ended Oct 2017)

• 2018E: EBITDA mg 3% - 4%

SPAIN: solid performance, EBITDA margin at 10.4%.

Ferrovial 2017 resultsServices

€ million

2017 % % LfLRevenues 7,069 +16.3% +1.9%EBITDA 423 +30.2% +14.2%EBITDA % 6.0%Order book 20,918 -14.4% -11.3%

EBITDA 2017 BY BUSINESS

OPERATING CASH FLOW (pre tax)

302 289

395 396

2014 2015 2016 2017

20% 47% 28% 5%

UK Spain BRS International

* RPC: Regional processing centres

28

66% 18% 16%

Budimex Webber F. Agroman

Revenues (+11% LfL) with positive evolution in all areas

Lower profitability (EBIT margin 3.5%)

• Major projects in their initial phases.

• Order book with a lesser levels of complexity.

• Lower proportion of contracts with sisters companies.

• Losses incurred in 2017: mainly explained by two contracts (Scotland -€54mn & Colombia -€31mn).

Solid growth in Budimex: EBITDA +17.7%

Order book reached a record figure (+26.7%LfL)

• I-66 (Virginia, EUR1.9bn), Denver Airport (EUR541mn) & Grand Parkway (Texas, EUR784mn).

2018E performance: EBIT margin should evolve from around 1% (1Q) to 3 - 3.5% for FY 2018.

Ferrovial 2017 resultsConstruction

€ million

EBITDA 2017 BY BUSINESS

ORDER BOOK BY COUNTRY

2017 % % LfLRevenues 4,628 +10.3% +11.0%EBITDA 199 -41.8% -41.8%EBITDA % 4.3%EBIT 162 -48.1% -48.1%EBIT % 3.5%Order book 11,145 +22.6% +26.7%

12% 22% 45% 7% 14%

Spain Poland US UK RotW

29

• Capital gain from Norte Litoral & Algarve• Further provision registered at Autema

• 2017: Lower financial expenses (deconsolidations)• 2016: negative impact from cancellation of Ausol

derivative

• 2016: Chicago divestment impact

• 2017: higher contribution from HAH & 407ETR

• Higher profit at Budimex• Deconsolidation of SH-130 & Chicago and the

improved results from Managed Lanes

Ferrovial 2017 resultsProfit & Loss

€ million

IMPAIRMENT & DISPOSALS (2017)

NET FINANCIAL RESULT

EQUITY ACCOUNTED

TAXES

MINORITIES

2017 2016Revenues 12,208 10,759EBITDA 932 944Depreciation -375 -342Impairment & disposals 81 324EBIT 638 926Net Financial Result -311 -391Equity accounted 251 82EBT 578 617Taxes -71 -233Minorities -53 -7NET PROFIT 454 376


EXCLUDING INFRASTRUCTURE PROJECTS

2017 PNT excluding Hybrid bond: €841mn

Ferrovial 2017 resultsNet Debt Evolution

€ million

697484 553

-38

-355

253

-520-184

500

1,341

-48

Net Cash Dec'16 EBITDA ex infraprojects

Dividends fromToll Roads &

Airports

WCConstruction &

Services

Investment CF Divestments Shareholderremuneration

Interest, taxes &others

Hybrid Bond Net cash Dec'17

-4,963

449

-16-371 -215

73

-43

283

-4,804

Net debt Dec'16 EBITDA Working Capital Net Investment Dividends & Interest Capital Perimeterchanges/Divestments

Taxes, Forex & Other Net debt Dec'17

31

An adjustment of -€272mn has been recognized through reserves in the opening balance (Jan 01, 2017).

Early application in January 2017 of IFRS 15 Standard: Revenue from contracts with customers.

New standard implies more strict threshold for revenue recognition (approval/highly probable vs. probable) and the

evaluation of WIP/Debtor balance as of Dec.2016 according the new threshold.

The impact of this review has to be charged to equity.

Part of the adjustment can be recovered through P&L in the future if the threshold is finally reached.

Ferrovial 2017 resultsIFRS15 impact

32

Scrip dividend (reference dividend /share)

First scrip dividend (equivalent to 2017 complementary dividend)* 0.312Second scrip dividend (equivalent to 2018 interim dividend)* 0.402

TOTAL 0.714

up to €275mnor

up to 19m shares

(*) Calculation based on average closing price from 30th January to 5th February of 18.103€

Ferrovial 2017 resultsShareholder remuneration

20172018 SHAREHOLDER REMUNERATION PROPOSAL (*)

Share buybackup to €275mn

orup to 19m shares

0.3150.404

0.719






Table of Contents

34

15% 9% 64% 12%

24% 23% 14% 13% 21% 6%

REVE

NUES

>75% infrastructures

A. Business split vs. valuation

Construction

Airports

Toll RoadsServices

Construction Toll RoadsServices

Infra assets76% of valuation

4% of revenues

USA & Canada59% of valuation

14% of revenues

Infra assets are main value drivers (76%) with limited P&L contribution

Revenues FY 2017 results, Valuation December 2017

By GEOGRAPHYBy BUSINESS

VALU

ATIO

N

58% 38% 4%

16% 12% 59% 4%4%5%

35

Strong dividends in 2017• €277mn dividends from projects – 407 ETR €262mn

• €154mn invested in new projects

Traffic growth in main markets

New project awarded: I-66 (Virginia, US) • USD3bn managed lane project

• 35km along the I-66 corridor

• 50 years concession

Mature asset rotation: • Portuguese toll roads stake sale:

• 51% Norte Litoral, April (EUR104mn) • 49% Algarve, September (EUR58mn).

Focus mainly on North America (Canada & USA)Unique Assets

High complexity, free tolling, dynamic pricing & long term

B. Main infrastructure assetsCintra: One of the world leaders in open-competition highway concessions

DIVIDENDS FROM PROJECTS (€ mn)

159220 242 255 267 290 277

2011 2012 2013 2014 2015 2016 2017

36

B. Main infrastructure assets: 407 ETR

407

GREEN BELT

East Extension

407

Toronto Ring Road 108 km

High Density Population

401

37

Typical traffic on a Wednesday at 5:20 p.m.

Source: Google

407ETR

407ETR

407ETR

2. Main infrastructure assets407 ETR: The only non-congested road to cross Toronto

38

2. Main infrastructure assets407 ETR: Strong EBITDA growth … even with negative traffic & GDP

18.9

15.4 15.4

14.1

11.7

15.6

1.5

7.2

12.6

10.89.7 9.7

10.3

14.2

17.3

12.113.2

1.0

7.5

5.4

2.9

6.1

0

-1.7

5.5

-0.5

0.6 0.7

3.4 3.34.1

2.62.81.9

3.1 3.22.6

2.01.2

-2.7

3.4 3.01.9 2.0

2.5

1.2 1.2

2.9

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EBITDA growth Traffic growth GDP growth (annual)

GDP growth source: World Bank

%

39

Strong dividend flowSharp increase in equity valuation

80 years to maturity2098

Analyst valuation up 35x

€mn

CASH GENERATION (1999 – 2017) EQUITY VALUATION 100%MATURITY

2. Main infrastructure assets407 ETR: Cash flow and valuation overview

100% pay-back in first 10 years

* Analyst Consensus Valuation

35xCash GenerationInitial equity invest.(62%) -326 mnDividends 2,023 mn10%Disposal 640 mn

NET CASH IN 2,337 mn

525

18,614

1999 Dec'17

40

103

164

2006 2017

456

1,268

2006 2017

120 135 190300

460600

680 730 750 790 845

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

B. Main infrastructure assets407 ETR: Financial Overview

CAPITAL EXPENDITURE

DIVIDENDS

NET DEBT / EBITDA x

REVENUES

OPEX

EBITDA

97 90

38

72 7788

70 7455

70 72

104

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

27.0X

6.3x

1999 2017

CAGR: 9.7%

CAGR: 4.3%

353

1104

77%79%

76%

80%82%

83% 83% 83% 83% 84%

87% 87%

2006 2017

CAGR: 10.9%

CAD mn

41

Perfect locationExcellent prospects for business growth

Sources:- Planning for Prosperity – November 2015 - (Globalization, Competitiveness and the Growth Plan for the Greater Golden Horseshoe) . Neptis Foundation.- No shortage of land for homes in the Greater Toronto and Hamilton Area – October 2016 – Land supply for future urban development designated by municipalities across the Greater

Golden Horseshoe to accommodate growth to 2031. Neptis Foundation.- Statistics Canada

GTA POPULATION4.5 mn

POPULATION EMPLOYMENT MEGAZONES

YESTERDAY

B. Main infrastructure assets407 ETR: Reasons for 407 ETR’s success

42

Perfect locationExcellent prospects for business growth

POPULATION AREA URBANIZEDBETWEEN 2006 & 2016

EMPLOYMENT MEGAZONES

407 avg PK hour speed : 100 Kph401 avg PK hour speed : 20 Kph

GTA POPULATION6.5mn

+44% vs 1996

TODAY

B. Main infrastructure assets407 ETR: Reasons for 407 ETR’s success

43

407ETR Regions includes: Toronto, Durham, Peel, Halton & YorkSource: Government of Ontario Places to Grow

POPULATION GROWTH (2021 – 2041)EMPLOYMENT GROWTH (2021 – 2041)

Future growth in population & employment to support traffic

TOMORROW

B. Main infrastructure assets407ETR: Reasons for 407 ETR’s success

44

407ETR Managed Lanes (NTE1-2)• 62.97%. Global consolidation• Meridiam (37%)• 52 years

Opened October 2014 (43 years remaining)

• Dallas-Fort Worth Metroplex, between Fort Worth & DFW Airport • 13 miles. 2 segments.

2 lanes per directionTollway within a freeway

• Predictability & reliable travel times (minimum speed 50m/hr)Higher speed allowed on NTE (60mph in free lanes, 70mph NTE)Safety & comfort

• Yes. No toll booths, fully electronic, free flow system• Freedom to set tariffs up to cap ($0.84, updated with inflation)

Cap is lifted if av. speed <50m/hr of cars >3,300pce/h (2 lanes)Dynamic tolling (tariffs can be changed every 5 minutes) Different tariffs depending on segment, direction, time, day..

• Not a regulated activity, but a contractual agreement• From TxDOT (who charges the drivers). No collection risk

• 5 initial years lock-up

• 43%. Equity consolidated• SNC Lavalin (17%), CPPIB (40%)• 99 years

Opened 1999 (80 years remaining)

• Greater Toronto Area (Ontario province)• 108kms. 24 segments

From 2+2 lanes up to 5+5 lanes per direction (dep on segment)Separate toll road

• Predictability & reliable travel timesAlternative routes are highly congestedAverage speed: 100km/h vs 40km/h on the alternativeSafety & comfort

• Yes. No toll booths, fully electronic, free flow system• Freedom to set tariffs

Penalty paid if traffic falls below thresholdTariffs can be changed every 30 daysDifferent tariffs depending on segment, direction, time, day..

• Not a regulated activity, but a contractual agreement• From drivers. Licence plate not renewed if tolls not paid.

• Strong growth (from CAD85mn 2005 to 750mn 2015)

Participation:Partners:Concession period:

Location:Length:

Benefits:

Open tolling?Tariff Policy:

Regulatory risk?Collection:

Dividends:

B. Main infrastructure assets407ETR vs Managed Lanes

45

A solution to congestion on “existing urban corridors”

Active management of “newly added capacity” through tollingthrough

Free

Lanes

Free

Lanes

Tolled LanesSpeed >50mph

“Express Tollway within an Existing Highway”

2. Main infrastructure assetsManaged Lanes

46

2. Main infrastructure assetsManaged Lanes

47

Toll Rate Cap 0.75 c/mi

Demand threshold 3300 pce/h2-lane sections

Speed Threshold 50 mi/h

12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00Hour startingAnalysis by segment and direction

Freedom under the cap TOTAL FREEDOM Freedom under the cap

Speed

Demand

Toll Rate

0.88 $/mi

B. Main Infrastructure AssetsManaged Lanes: Toll rates – tariff threshold

48

• First privately-financed road development project of its kind to reach financial close in 2010.

• Texas’ third big recent road project to reach financial close since 2008.

• First combination of TIFIA and tax exempt PABs.

• First private activity bond issuance for a toll road.

• First time that a U.S.-based pension fund made a direct investment in a highway concession.

21%

51%

28%

25%

56%

18%

Figures in US Dollars

32%

59%

9%

• Very competitive capital structure in spite of the difficult market conditions.

• Strong portion of the debt from TIFIA program with its flexible amortizing structure during the first 25 years.

2.05 bn

427 mn

242 mn (57%)141 mn (33%)43 mn (10%)

1,048 mn

398 mn650 mn

573 mn

2.62 bn

672 mn

343 mn (51%)107 mn (16%)

44 mn (7%)178 mn (26%)

1,456 mn

606mn850 mn

490 mn

1.36 bn

430 mn

231 mn (54%)75 mn (18%)

124 mn (29%)

805 mn

274 mn531mn

126 mn

Total Investment:

Private Equity:

Cintra: Meridiam: DPFPS:APG:

Total Debt:

PABs:TIFIA:

Public Funds:

Financial structure

* In September 2017, Cintra, along with the other Managed Lanes partners (Meridiam and APG) has acquired DPFPS’s stake in NTE (10%) and LBJ (7%).Cintra acquired 6.3% in NTE and 3.6% in LBJ, and now holds 62.97% in NTE and 54.6% in LBJ

B. Main Infrastructure AssetsManaged Lanes: Financial Overview

49

12am 3am 6am 9am 12pm 3pm 6pm 9pm

2014 2015 2016 2017 Cap (2017)

Eastbound workday on segment 1

CAP linked to inflation2017 avg toll rate per transaction: ~USD3.4

Index 100

+13.2%

B. Main Infrastructure AssetsManaged Lanes

100

150

200

250

300

350

400

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17Revenue Txns Rev/Txn

100

120

140

160

180

200

220

240

4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17

Transactions Revenue Rev/Txn

GROWTH SINCE OPENING (LBJ)GROWTH SINCE OPENING (NTE)

TOLL RATES EVOLUTION (NTE)SPEEDS AT NTE

30

40

50

60

70

80

12am 3am 6am 9am 12pm 3pm 6pm 9pm

2011 2017 Non-Tolled Lanes2017 TEXpress Lanes

50

21% 52% 27%

63% 37%

CINTRA MERIDIAM

DESCRIPTION:

LENGTH:

CONCESSION PERIOD:

TARIFF POLICY:

Dallas-Fort Worth Metroplex, Major thoroughfares

between Fort Worth and DFW Airport

13 mile section (IH 820 & SH 183 in Tarrant County)

52 years (since 2009)

Open Road Tolling System (no toll booths) with a dynamic tolling

regime (every 5 minutes) to maintain at all times a minimum speed of

50 mph

● No toll-booths, fully electronic free flow tolling system

● Tollway within a freeway: Motorists will be provided with a choice of

driving in non-tolled GP lanes or paying a toll to bypass such GP

lanes

● Tolls setting to ensure minimum speed on new lanes

● As demand grows and capacity becomes scarce, pricing power

increases

● Physically separated from the GP lanes with controlled access

EQUITY DEBT PUBLIC FUNDS

Opened on October 2014, 9 months ahead of schedule

KEY CHARACTERISTICS

SHAREHOLDER STRUCTURE

FINANCIAL STRUCTURE

B. Main Infrastructure AssetsManaged Lanes: North Tarrant Express

51

24% 56% 19%

55% 28% 17%

CINTRA MERIDIAM

108KmElectronic toll

DESCRIPTION:

LENGTH:

CONCESSION PERIOD:

TARIFF POLICY:

IH 635 (Dallas County), the most populous county in Texas

13 mile section of the IH 635 and IH 35E




50 mph

● No toll-booths, fully electronic free flow tolling system



lanes



increases

● Physically separated from the GP lanes with controlled access

For further information on the concession, check the following links:https://youtu.be/9GMj3H5OovAhttps://youtu.be/pnNFZ8qJY-c

EQUITY DEBT PUBLIC FUNDS

APG


FINANCIAL STRUCTURE

KEY CHARACTERISTICS

Opened on September 10th 2015, 3 months ahead of schedule

B. Main Infrastructure AssetsManaged Lanes: Lyndon B Johnson

https://youtu.be/9GMj3H5OovA

https://youtu.be/pnNFZ8qJY-c

52

32% 59% 9%

54% 29% 18%

CINTRA MERIDIAM

DESCRIPTION:

LENGTH:

CONCESSION PERIOD:

TARIFF POLICY:

2 “managed lanes” in each direction of the IH-35W, segments 3A and

3B (3B segment to be built by TxDOT)

10.2 mile section (segments 3A 6.2 miles and 3B 4 miles)




50 mph

● The corridor south to the 3A segment is currently ranked as the most

congested roadway in Texas.

● No toll-booths, fully electronic free flow system



lanes



increases

● Physically separated from the GP lanes with controlled accessEQUITY DEBT PUBLIC FUNDS

APG


FINANCIAL STRUCTURE

KEY CHARACTERISTICS

Expected to open in 2H’2018

B. Main Infrastructure AssetsManaged Lanes: North Tarrant Express 35W

53

HAH

100% £mn

£525MN dividend in 2017 (£325mn in 2016)

RAB: positive impact from higher inflation

Traffic: +3.1% 2017 (14 consec monthly records)

EBITDA +4.6% & 61% EBITDA mg (59.9% in 2016).

(Equity method, FERROVIAL stake 25%)

AGS paid £146mn (2017, incl. £75mn in extraordinary dividends after its refinancing).

Traffic +4.9% in 2017 (15.1mn pax.):

EBITDA +10.7%, on traffic growth & greater cost control

Regional UK Airports(Equity method, FERROVIAL stake 50%)

*RAB: Regulated Asset Base

85Countries

25%Transfer

Share

3.1%Growth

93%Int’l

471kFlights78.0m

Passengers

204Destinations

B. Main Infrastructure AssetsAirports

Revenues EBITDA EBITDA %2017 Var. 2017 Var. 2017

Total AGS 209 +6.3% 92 +10.7% 43.8%Glasgow 122 +8.4% 58 +10.3% 47.6%Aberdeen 56 +0.6% 22 +8.0% 39.6%

Southampton 31 +9.1% 11 +18.3% 36.5%

HAH P&L 2017 Var.Revenues 2,883 +2.6%

EBITDA 1,760 +4.6%EBITDA % 61.0%Net debt 13,519 -1.2%

2017 Var.Glasgow 9.9 +5.7%Aberdeen 3.1 +1.9%Southampton 2.1 +6.1%Total AGS 15.1 +4.9%

54

REAL GDPNOMINAL INTEREST

RATESPRICES

(INFLATION)

TARIFFS

+ VALUE

VKT

+ VALUE

COST OF CAPITAL

- VALUE

“DISCOUNT RATE EFFECT”

EXCHANGERATE

+ VALUE

“CASH FLOWS EFFECT”

Sources: Paper of professor Carles Vergara-Alert

WHICH IS THE PREVAILING EFFECT…

AND HOW DOES IT AFFECT INFRA-ASSETS VALUE, ESPECIALLY 407 ETR & MLS?

REAL INTEREST

RATES

Central bank increases the nominal interest rate to meet

its target real interest rate (Taylor rule)

Output gapDemand and inelastic

supplyMonetary policy

C. CMD 2017: Interest & FX rate risksWhat the economic theory says…

55

Widespread belief among investors that “an increase in interest rates reduces the value of the infra-asset”.

In other words “INFRASTRUCTURE ARE BOND-LIKE ASSETS”

KEY CONCEPT VARIABILITY IN CASH FLOWSOn what variables does revenue depend?How are these variables affected by interest rates?


Bond: A string of future fixed set of payments

0.03 0.035 0.04 0.045 0.05 0.055 0.06 0.065 0.07 0.075 0.08 0.085 0.09 0.095 0.1 0.105 0.11

Duration

(Price/yield curve)VALUE

Ke7.5% 8% 8.5% 9% 9.5% 10% 10.5%4% 4.5% 5% 5.5% 6% 6.5% 7%

Valuation @ current constant cash flows

Infra asset: A string of future variable set of cash-flows

but…

-

C. CMD 2017: Interest & FX rate risksInterest Rate Risk Infra-Asset Valuation

56

WITH TRAFFIC RISK (TOLL ROADS)3. - Pre-fixed toll rate (CPI escalated) AUSOL (Spain) CF= (CPI, traffic)

4. - Tolls escalated to a maximum (GDP per capita) “Chicago Skyway”, ITR (USA) CF= (CPI, traffic, GDP per capita)

5. - Free-rate tolling mechanism 407 ETR (Canada), ML (USA) CF= (CPI, traffic, willingness to pay)

WITHOUT TRAFFIC RISK (NON-TOLL ROADS)1. - Availability payment (no CPI adjusted) Towoomba (Australia) CF=K

2. - Availability payment (CPI adjusted) Norte Litoral ( Portugal) CF= (CPI)

“INTEREST RISK METER OF CONCESSION VALUE”


High Mid Low Very Low None

1 2 3 4 5

94%Cintra´s

Value

C. CMD 2017: Interest & FX rate risksCategories of infra-assets as per variability of cash flows

57

1 Assumptions of the exercise: 100 “currency units” of investment, 50 years concession, Beta=1.0, ERP=5%, Leverage = 50%, Debt premium = 4.0%, Tax rate 30%.

Valu

e

Project i.e.: TOOWOOMBA

Significant value decrease

(Bond proxy)

0%Cintra´s Value

1

RISK FREE RATE

Project i.e: AUSOL

3%Cintra´s Value

Stablevalue

3

Valu

e

RISK FREE RATE

Project i.e.: NORTE LITORAL

3%Cintra´s Value

Slight value decrease

2

Valu

e

RISK FREE RATE

Project i.e: CHICAGO SKYWAY

0%Cintra´s Value

Modest value increase

4

Valu

e

RISK FREE RATE

-Capture consumer’s surplus generated by CPI/GDP per capita

-Inability to capture “optimal price”


AVAILABILITY

AVAILABILITY & CPI Adj

DEMAND RISK & CPI Adj

DEMAND RISK & CPI, GDP Adj

C. CMD 2017: Interest & FX rate risksEffect of interest rates on asset valuation by category1 (I)

58

RISK FREE RATE

Valu

e

TARIFFS - Maximum discretional adjustment- Ability to capture the consumer’s surplus

generated by higher willingness-to-pay

PROJECT I.E.: 407 ETR

Optimal price Sub-optimal price

94%Cintra´s Value

TRAFFIC - Traffic ( VKT ) increases when the real GDP increases

5th category is the only one that: - Is able to reach “optimal tariffs” and to extract full value from a rise

of interest rates- Has a “cash flow effect” much higher than the “discount effect”

Sources: Paper of profesor Carles Vergara-Alert

Demand risk & Total free-rate tolling

THE EXCHANGE RATE OPERATES AS BONUS EFFECT IN OUR CANADIAN-US ASSET’S VALUE:− Short-term: next 18-24 month of dividends fully hedged− Long-term: from a € based investor, US and Canada provided a better future economic outlook, that will lead us to a likely

revaluation

5

C. CMD 2017: Interest & FX rate risksEffect of interest rates on asset valuation by category (II)

59

NOT CPI INDEXED(i.e. Toowoomba)

HIGH COMPLEXITY

LOW COMPLEXITY

From value to standpoint … very different “animals” fall within the CATEGORY OF “HIGHWAY CONCESSION”

AVAILABILITY PAYMENT PROJECTS DEMAND RISK PROJECTS

CPI INDEXED(i.e. Norte Litoral)

CPI INDEXED TARIFFS(i.e. Ausol)

TARIFFS LINKED TO REAL ECONOMY

GROWTH(i.e. Chicago Skyway)

FREE TARIFF FLOW(i.e. 407 ETR & MLs)

(1) After 10 years of operation, if currently expected CF´s are met(2) Ferrovial price per share impact: value generated / Ferrovial number of shares as of 31.12.16 (732.5M)

Sources: Cintra Infraestructures, S.E.

VERY HIGH UPSIDE OF UNTAPPED VALUE

Long remaining concession periods, back-ended CF’s with high expected bid IRRs

• 407 ETR in 10 years (1) 1.6x Value at Present +7 €/ Fer. Sh(2)

• ML’s in 10 years (1) 5.5x Equity Committed 11 € / Fer. Sh(2)

FOCUSED ON HIGH COMPLEXITY CONCESSIONS

MOST of Cintra portfolio

• In terms of Equity Value: 94%

• In terms of Equity Committed: 74%

C. CMD 2017: Different Concessions Models

60

LOW COMPLEXITY CONCESSIONAVAILABILITY PAYMENT CPI INDEXED

Long concession term (99 years)

THE BID IRR: the higher the Bid IRR, the larger

the room to reduce the rate of discount

THE CONCESION TERM: the longer the term, the

higher the value produced by late cash flows with

almost no value at present

THE CASH FLOW PROFILE: the more back

ended, the higher the value produced by late very

high cash flows with almost no value at present

Low Bid IRR(11%)

Front ended CF’s (Low rev CAGR (2%))

Short concession term (25 years)

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039

…

HIGH COMPLEXITY CONCESSION407 ETR TYPE

…

WHAT MAKES THE CF STREAM PROFILE MORE BACK ENDED?

1. HIGHER TRAFFIC GROWTHS: - better regional economic growth rates- lower relative size of toll roads vs free alternative

2. HIGHER TARIFF GROWHTS: - higher willingness to pay (increased with congestion levels and disposable income)

High Bid IRR(15%)

Back ended CF’s (High rev CAGR (6%))

Sources: Cintra Infraestructures, S.E. analysis

O&M + Capex + Tax

Debt Service

Equity distributions

Revenues + ReserveAccounts releases

C. CMD 2017: Different Concessions ModelsWhat makes the difference?

61

A HIGHWAY CONCESSION: a contractually defined set of rights and obligations with regards to vehicles moving in a certain route during a period of time

Basic Rights: collect tolls (or other payments) Basic Obligations

− Design and build the highway (construction phase)− Ensure safe trips (operation phase): design, build, finance, operate and maintain

FINANCIALLY: string of cash flows that reflect annual monetary value of contractual rights net of obligations

Price paid for these cash flows at the initial moment is determined by the bidding IRR and their expected values

The premium (over the RFR) of this IRR reflects the risks of the project undertaken by the sponsors If the concession is tendered under perfect competition, price paid equals value acquired: no value is

created nor destroyed at this specific moment

THEN… WHAT HAVE WE CREATED?

A potential value that sponsors will progressively crystallize in the future

C. CMD 2017: Highway Concession Business Value CreationHow does the highway concession business create value for shareholders?

62

THE NORMAL WAY: meeting expected cash flows as we put risks behind, that is, DE-RISKING or reducing the market discount rate of the business as projects mature

AN IMPORTANT “NICE TO HAVE”: cash flow outperforming original expectations Main objective of an operator: managing the asset to maximize cash flows: that is optimizing the asset through Premium

Operation ) This is, not the primary source of value for shareholders in concessions won under competition

Risks

Disc.Rate

CONSTRUCTION

Design & ConstructionCost environmental, RoW

Traffic / RevenueInitial traffic, ramp up, long

term variationsFinancial Closing

Operation MaintenanceInterest Rates

10% - 15%

RAMP-UP

--

Traffic / RevenueRamp up, long term variations

RefinancingOperation Maintenance

Interest Rates

8% - 13%

GROWTH / MATURITY

--

Traffic / RevenueLong term variations

-Operation Maintenance

-

4% - 8%

RISK

CONCESSION TERM


C. CMD 2017: Highway Concession Business Value CreationHow do sponsors create value?

63

VALU

E*

* NPV of remaining cash flowCONCESSION TERM

186

812

1,058

1,426

1,662

1,702

1,296

Yr [email protected]%

Const. end@12%


Yr 15@7%

Yr 20@6%


Yr 30@5%

Yr 40@4%

Yr 47

THE ROLLING FORWARD EFFECT: progressive increase of value as we get closer to back ended cash flows


VALUE CREATION: DERISKING & ROLLING FORWARD

€100M invested in one of our ML’s

C. CMD 2017: Highway Concession Business Value CreationHow do sponsors create value?

64

-27 -58 -70 -69 -46

461 596399 424 515

663 538560 640 530

2013 2014 2015 2016 2017

Op. CF (Construction& Services)

Dividens from infra(Toll roads & Airports)

Holding & Others

Operating CF ex-infra projects (before tax.)

EBITDA & Margins

• Net cash at parent company

• Net debt at infra projects level (non recourse to parent company)

Revenues

Net debt

OCF ex-infra ND

D. Historical dataHistoric consolidated figures: 2013-2017

€mn

1,097 1,076 889 995 999

Op. CF:Construction 304 236 272 245 134

Services 359 302 289 395 396

Dividends:Toll Roads 242 255 267 290 277

Airports 219 341 132 134 237

Holding & Others -27 -58 -70 -69 -46

-7,015 -7,862 -6,057 -4,963 -4,804

1,663 1,632 1,514 697 1,341

2013 2014 2015 2016 2017

N. CASH EX-INFRA

INFRA PROJ.

-5,352 -6,230 -4,542 -4,266 3,463

2,590 2,709 2,694 2,629 2,837

5,577 6,093 7,006 8,1299,371

8,166 8,8029,701

10,75912,208

2013 2014 2015 2016 2017

Dom estic International

934 983 1,027 944 932

11.4%11.2%

10.6%

8.8%

7.6%

7 .0 %

8 .0 %

9 .0 %

1 0. 0%

1 1. 0%

1 2. 0%

0

2 00

4 00

6 00

8 00

1 ,0 00

1 ,2 00

2013 2014 2015 2016 2017

EBITDA Margin

65

108

35 32 21 27 1641 35

105

48 41

130 119152

407

ETR

407

ETR

E.I

407

ETR

E. I

I

NTE

LBJ

NTE3

5W I-77

I-66

Auso

l I

Aute

ma

Toow

oom

ba

Alga

rve

Nort

e-Li

tora

l

Buca

ram

anga

80

27 2943 43 43 40

48

2818 25

12 1326

407

ETR

407

ETR

E.I

407

ETR

E. I

I

NTE

LBJ

NTE3

5W I-77

I-66

Auso

l I

Aute

ma

Toow

oom

ba

Alga

rve

Nort

e-Li

tora

l

Buca

ram

anga

2,078 km 26 concessions

10 countries

(Km’s)

Dividends received Managed Investment

Concession lengthYears to maturityYears

D. Historical dataToll roads figures: 2013-2017

€mn

217 224 242 244 262

25 31 25 46 15242 255 267

290 277

2013 2014 2015 2016 2017

407-ETR Others

39%

21%

6%

7%

27%

USA

Canada

Spain

UK & Ireland

Rest of World

66

1,4411,541 1,608

1,6831,760

2013 2014 2015 2016 2017

2013 2014 2015 2016 2017

Heathrow 72.3 73.4 75.0 75.7 78.0AGS 12.6 13.3 14.0 14.4 15.1

Glasgow 7.4 7.7 8.7 9.4 9.9

Aberdeen 3.5 3.8 3.5 3.1 3.1

Southampton 1.7 1.8 1.8 2.0 2.1

Dividends received from airports (€mn)

Heathrow (25% stake)

2 runways204 destinations85 countries471K flights

*AGS (50% stake)

AberdeenGlasgowSouthampton

Traffic mn passengers HAH EBITDA (£mn )

Heathrow shareholdersPortfolio Heathrow

*Ferrovial increased its stake in AGS from 25% (held through HAH) to 50% in 2014.

Capital expenditure (mn £)

Ferrovial Qatar Brittania GIC CICAlinda USS

D. Historical dataAirports figures: 2013-2017

96153

38 38

84

219

341

132 134

237

2013 2014 2015 2016 2017

AGS

HA H

1,283

853

627674 687

2013 2014 2015 2016 2017

25% 20% 12.6% 11.2% 11.2% 10% 10%

67

343 349393

342

199

8.4% 8.8% 9.2%8.1%

4.3%

0 .0 %

1 .0 %

2 .0 %

3 .0 %

4 .0 %

5 .0 %

6 .0 %

7 .0 %

8 .0 %

9 .0 %

1 0. 0%

0

5 0

1 00

1 50

2 00

2 50

3 00

3 50

4 00

2013 2014 2015 2016 2017

EBITDAMargin

2017

2017

Operating & investment CF (ex-projects)

Backlog

Revenues

EBITDA & Margins

OCF ex-infra(before tax)

2017*”Ferrovial Agroman” unit was created in 2013, previously,

“Other markets” was the relevant unit.

D. Historical dataConstruction figures: 2013-2017

€mn

304236 272 245

134

2013 2014 2015 2016 2017

EBITDA ex-project 329 335 380 329 186Working Capital & others -25 -99 -109 -87 -57

Operating Cash Flow (b. tax.) 304 236 272 245 134Investment Cash Flow 25 -32 -30 -74 9

2,274 2,116 2,419 2,217 2,387

1,099 1,1521,226 1,270 1,457

690 673643 708

7844,064 3,942 4,287 4,194

4,628

2013 2014 2015 2016 2017

*F.Agroma n Budimex Webber

*F.Agroman 11.9% 11.1% 9.8% 8.4% 1.3%

Budimex 4.1% 4.8% 5.6% 8.7% 9.0%

Webber 3.9% 8.7% 13.8% 6.2% 4.6%

17% 83% Dom esticInternational

5,729 5,785 5,807 5,9777,507

1,044 1,426 1,974 2,027

2,4671,095 880 950 1,084

1,1717,867 8,091 8,731 9,088

11,145

2013 2014 2015 2016 2017

*F.Agroma n Budimex Webber

12% 88%Dom estic

International

16% 3% 77%ResidentialIndustrial ~ & OtherCivil work

68

Operating & investment CF (ex-projects)

Backlog with JV’s

Revenues

EBITDA & Margins

2017

OCF ex-infra

(before tax)

D. Historical dataServices figures: 2013-2017

€mn

359302 289

395 396

2013 2014 2015 2016 2017

EBITDA ex-project 264 321 237 241 338

Dividends received 28 19 78 49 33

Working Capital & others 67 -38 -27 106 25

Operating Cash Flow (b. tax.) 359 302 289 395 396

Investment Cash Flow -528 -92 -207 -658 -120

1,421 1,599 1,677 1,762 1,898

2,1632,717 3,103 2,732 2,501

2,206

3,6564,401

4,897

6,0787,069

2013 2014 2015 2016 2017

Spain UK Broadspectrum International

11,18815,298 16,323

11,8985,260

6,330

6,736 6,140

5,741

9,878

6,1174,246

17,749

22,369 22,80024,431

20,918

2013 2014 2015 2016 2017

UK España Broadspectrum Internac ional

322387

312325

423

8.8% 8.8%

6.4%5.4%

6.0%

0 .0 %

1 .0 %

2 .0 %

3 .0 %

4 .0 %

5 .0 %

6 .0 %

7 .0 %

8 .0 %

9 .0 %

1 0. 0%

1 1. 0%

1 2. 0%

0

5 0

1 00

1 50

2 00

2 50

3 00

3 50

4 00

2013 2014 2015 2016 2017

EBITDA

Margin

EBITDA Margin

España 12.4% 10.7% 10.7% 10.7% 10.4%

UK 6.3% 7.7% 3.9% 1.5% 3.5%

34% 66%Domestic

International

69

EMPLOYEE COMMITMENT & EXPERIENCE: focus on attracting & hiring the best talent to become an employer of choice in markets where Ferrovial operates.

TALENT MANAGEMENT: help each employee to reach their maximum potential while promoting the best professional opportunities.

• Play the Future Project: 6 training itineraries linked to new technologies (Big Data, IoT…)

• Awareness Sessions Cycle: conferences focused on emerging technologies & innovation

• Executive Forums: similar to Awareness Sessions, completed with teamwork to describe the critical capabilities that must be reinforced or created to position the company as a key player.

CULTURE: Ferrovial, with more than 110 nationalities in its workforce, shows a firm commitment to effective equality of opportunities, focused on three areas (Strategic Diversity Plan): gender, generational and multicultural.

People Say on pay FY17 figures

CHAIRMAN & CEO REMMUNERATION

27% 44% 29%VARIABLEFIXED LONG TERM INCENTIVES

* BOARD REMMUNERATION

* VARIABLE REMUNERATION (TARGET 125%, MAXIMUM 225%)

* LONG -TERM REMUNERATION based on delivery of share plans structured into multi-year cycles (3y) overlapping,which turn into shares at the end of the cycle.

Metrics MAX MINEBITDA/avg earning assets (70%) ≥10.5% <9%

Total Shareholder Return (30%) Among top 5 positions Between position 11th & 18th

FER compares with IBEX-35 members & is in the median of non-executive directors remuneration.

EMPLOYEE COMMITMENT & EXPERIENCE, TALENT MANAGEMENT & CULTUREPromote a collaborative, flexible and inclusive culture based on meritocracy, tooffer unique and challenging experiences, forming experienced teams committedto corporate values.

BY BUSINESS UNITS

SERVICES81%

AIRPORTS0.05%TOLL ROADS1%CONSTRUCTION17%

BY COUNTRIES

CEOCHAIRMANQUALITATIVE QUANTITATIVE QUANTITATIVEQUALITATIVE

50% 50% 60%40%

• Board & Executive Committee operations

• Corporate Governance• Strategic Plan• Successions• Institutional Relations

• Strategic Plan compliance• Employee Health & Safety, measured using accident rates. • Promoting Innovation & CSR. • Professional teams development to guarantee stability in

mgmt. & achievement of organization’s strategic objectives• Adjustment & monitoring of procedures linked to assuming

controlled risks. • Relationships with stakeholders

95,978 600,000h88%training provided

(10Y of Summa University)Employees

(71% men; 29% women)Out of all the employees

consider Ferrovial a good place to work

TSR COMPANIES: Serco, Strabag, SNC-Lavalin, Skanska, AENA, ACS, FCC, Eiffage, VINCI, KIER, Abertis, Transurban, B. Beatty, Fraport, ADP, Ferrovial, Carillion, OHL

70

INNOVATION PROJECTS

ACKNOWLEDGEMENTSFerrovial has been included in the DJSI (Dow Jones Sustainability Index) for the last16 consecutive years, at a global level; in the FTSE 4Good index for the past 13, in theCarbon Disclosure Project for the past 6, and is also a member of Stoxx and MSCIGlobal Sustainability Index.

Ferrovial continues its efforts to offer services and infrastructures that respond tochallenges such as climate change, water footprint management, the energy crisis,the reuse of waste and the loss of biodiversity, to create value by reducing theenvironmental impact and discover new business opportunities.

Ferrovial believes that innovation is a difference maker that enables the companyto lead transformation of infrastructures and services, providing customers andusers with solutions that efficiently, sustainably and safely contribute to well-being and progress of society.The company works on new business models that increase offers of products &services; improvement of operational efficiency & cross-cutting managementprocesses and increase of digital skills of employees.New technologies (robotics, artificial intelligence, IoT and Big Data) arehaving a significant and fast impact on all sectors. To respond to thesechallenges, Ferrovial is accelerating its process of implementing innovativesolutions, within its open innovation strategy.

INNOVATION IN 2017

>110 €47mn30R&D investmentR&D developed projects Pilot projects

developed with Startups

EnvironmentInnovation

-28.4%REDUCTION OF CO2 EMISSIONS

ELECTRICITY FROM RENEWABLE SOURCE

-10.2% 36% -35.4%IN RELATIVE TERMS

(tCO2 eq/€mn) (2009-2017)

IN ABSOLUTE TERMS (2009-2017)

NEW REDUCTION2020 TARGET

WATER FOOT PRINT

• Business Water Index (BWI): 5,482,743.Water consumption and discharge in activitiescarried out by the business units

• Water Treatment Index (WTI): -199,656,213.Cadagua's water treatment processes impactand those of F. Services & Amey's leachatetreatment in landfills.

• Water Access Index (WAI): -535,156;Impact of Social Action projects for watersupply to communities in developing countries.

BIG DATA AND MOBILITY TRENDSUse of Big Data is a competitive advantage when analyzing newprojects & optimizing existing ones. In Europe, Dallas & Canada tollroads, projects are already underway to analyze impact ofautonomous and connected vehicles.

INTERNET OF RADIO LIGHT IN TUNNELSLIFI (Light Fidelity) technology to improve communications incomplex & difficult to access works (tunnel/confined areas).Communication solution based on wireless tech. that transmitsultra-fast data through a beam of light.

ZITY CARNew car sharing mobility service in Madrid that has an electricvehicle with 400km autonomy and allows citizen to drive furtherand use the vehicle for longer. Recharged with 100% renewableenergy & highest safety certification.

OF THE TOTAL CONSUMED

FY17 figures

71

CommunityHealth & Safety FY17 figures

Ferrovial works to create risk-free environments for all its employees, as well as forusers of infrastructures and services by developing action plans under the premiseof the target zero principles and that any accident can be avoided.

HEALTH & SAFETY TRAINING (hrs)

-9.3%

FREQUENCYINDEX(1)

-6.1%

SEVERITYINDEX(2)

753,818

HEALTH & SAFETY INSPECTIONS & AUDITS

79,058+2.4mn since 2015

(1)YoY% in index: number of accidents occurring during working hours leading to days lost for 1 mn hrs worked. (2)YoY% in index :number of days lost as a result of occupational accidents for every 1,000 hrs worked.

PRINCIPLES OF HEALTH & SAFETY STRATEGY

Ferrovial's Health & Safety strategy, together with the firm commitment frommanagement and all employees, have improved the company's accident rates.

Health & Safety is a Senior Management priority, and it is fully committed.

• Risk evaluation & planning: reliable risk and hazard evaluation processimplemented in all work centers to establish the organization, planning andcontrol systems needed to facilitate a safe work environment.

• Compliance with legislation & other standards in force in the countries whereFerrovial operates, paying attention to best practices when reasonably viable.

• Effective & consistent communication, facilitating communication channelsto encourage employees to contribute to a positive performance in matters ofOccupational Health & Safety, promoting safety culture throughout Ferrovial.

• Training & involving workers: Ferrovial has spent years increasing its trainingefforts to involve workers increasingly in common goal of creating risk-freeworkplaces.

• Measuring & monitoring performance: to promote consistent and positivework safety culture, a reporting system is needed that identifies unsafesituations or actions before they occur and implement the necessary preventivemeasures to avoid any type of accident.

• Innovation: new standards of performance, technology & safety measures canbe developed over innovation, contributing to Target Zero goal achievement.

UNITED NATIONS PARTNER IN SUSTAINABLE DEV’T& MEMBER OF PRIVATE SECTOR ADVISORY GROUP

In its commitment to the scope of Sustainable Development Goals (SDG), Ferrovialactively participates in the community through the development and execution ofsocial programs to significantly improve people's lives. The company has a key role inthe social and economic development of the countries where it carries out activities.

305

COMMUNITY SUPPORT PROJECTS

212,605

BENEFICIARIES IN WATER &SANITATION PROJECTS

4.3

COMMUNITYINVESTMENT (M€)

Since 2011, Ferrovial has had a program to cooperate in the development of Social Infrastructures, whichfacilitates access to water in Africa and Latin America. Ferrovial, together with NGOs and Local Authorities,develops water and sanitation infrastructures. Company employees in turn participate as volunteers,contributing with their knowledge in the country where the intervention is being carried out

Since 2005, employees decide to contribute to social projects, which is doubled by Ferrovial. In 2017, threeprojects chosen: start-up of Day Center for Children’s Villages in Málaga, rehabilitation of a medical clinic inHaiti with Manos Unidas and caring for leprosy patients in India with the Fontilles Association.

Ferrovial supports refurbishment & reconditioning of offices set up for distributing food & delivering socialaid packages to underprivileged groups. In 2016, Ferrovial provided support with World Vision España toimprove conditions in 6 food distribution centers (Madrid, Seville, Mieres, Valencia & Barcelona).

148,845 BENEFICIARIES

€1,605,930INVESTED

€597,894INVESTED

38,467BENEFICIARIES

€5,030,398INVESTED

214,549BENEFICIARIES

22PROJECTSSOCIAL INFRASTRUCTURES

STRONGER TOGETHER

COMMUNITY ENGAGEMENT IN SPAIN

COMMUNITY SUPPORT PROJECTS INVESTIMENT IN THE COMMUNITY

72

Disclaimer

This document may contain statements that constitute forward looking statements about the Company. These statements are

based on financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and

expectations, which refer to estimates regarding, among others, future growth in the different business lines and the global

business, market share, financial results and other aspects of the activity and situation relating to the Company.

Such forward looking statements, by its nature, are not guarantees of future performance and involve risks and uncertainties, and

other important factors that could cause actual developments or results to differ from those expressed in these forward looking

statements.

Analysts and investors, and any other person or entity that may need to take decisions, or prepare or release opinions about the

securities issued by the Company, are cautioned not to place undue reliance on those forward looking statements which speak only

as of the date of this communication. They are all encouraged to consult the Company’s communications and periodic filings made

with the relevant securities markets regulators and, in particular, with the Spanish Securities Markets Regulator.

Diapositiva 1 - Ferrovial · Ferrovial overview. 1. Overview. 2. What are investors worried about?...

Documents

Transcript of Diapositiva 1 - Ferrovial · Ferrovial overview. 1. Overview. 2. What are investors worried about?...