Investors Presentation 2013 | Presentación Inversores 2013

1 E-mail: [email protected] – Tel: +34 91 586 27 30


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.

Note on accounting changes:

On 26 October 2011 Ferrovial sold 5.88% of FGP Topco, the holding company of the HAH group. This resulted in HAH being consolidated by the equity method from November 2011 onwards. Under NIIF 5, 2011 results from HAH are reported under the headline of “Net income from discontinued operations” for 10 months while 2 months are accounted under the “Equity-accounted affiliates”. 2012 HAH results are accounted under “Equity-accounted affiliates”.


Agenda

• A p p e n d i x


Sustainable infrastructures and cities

operational excellence and innovation,

creating value for society, investors, employees, customers…

shaping the future


How to manage

Financially Low level of corporate

debt

Asset rotation to support

growth

Efficient asset

allocation

Operational value

generation

Operationally


INFRASTRUCTURE

PROJECTS

PARENT COMPANY

EXCL INFRA PROJECTS

Leading sponsor of tollroads infrastructure development worldwide

Key developer of ETR 407 Design, build, finance & operation

Leading European airport operator

Ownership and manager of 4 UK airports, including Heathrow

One of the European construction leading groups

Civil engineering, industrial construction & water treatment

Leading provider of infrastructure services

Infrastructure & Maintenance management

Urban services & waste management

Capital intensive / Inflation protected / LT duration & financing

Controlling Shareholder 43% Free float 57%

Non capital intensive / Backlog visibility / EPS accretive

Ring fenced debt

Net cash position

Ferrovial Business Overview

€220mn Dividends from Toll roads

€145mn Dividends from Airports

€314mn

€337mn EBITDA from Construction

EBITDA from Services

2012 figures

http://www.ferrovial.com/en/Business-Lines/Toll-Roads

http://www.ferrovial.com/en/Business-Lines/Airports


Debt Structure

Net debt evolution ex-infra projects

3,064 1,987 1,547 1,172

31 907

1.489 835

2006 2007 2008 2009 2010 2011 2012 9M13

Debt allocated at project level

NET CASH €835n

Infrastructures P R O J E C T S

E X – I N F R A P R O J E C T S

Net debt (€mn)

€mn Net debt

NTE 542

LBJ 839

TOTAL 1,388 TOLL ROADS* Debt €6,584mn

Projects under development not generating EBITDA

21% Of Toll roads

net debt

NET DEBT €6,910mn

* €1.135mn related to R4 & OLR, both filed for creditor protection


No meaningful maturities until 2018 Financial position (ex-infra projects)

2013-2021 maturities

Liquidity position

€ million

2013 2014 2015 2016 2017 2018 +

60 22 82

21 11

1BN

Total cash Undrawn lines Total liquidity

2.090

1.013

3.102

€ million Sep 2013


Highlights (2013 year to date)

Financial Corporate bonds 1

€24bn backlog (Construction & Services) Operations 3

€835mn Net cash / €3.1bn Liquidity Cash Position ex-infra projects

5

Enterprise acquisition (Serv i ces)

New managed lanes (Texas) Future 2

Airports divestment (S tans ted) HAH divestment 8 .65% s take sa le to UK pens ion fund (€463mn)

Value 4


Business Overview

Airports

Tol l roads

Services

Construct ion

Focus on quality service – Higher traffic due to load – factor

Q6 (2014-2019) Tariffs decision / January 2014 (proposal: RPI + 0%)

Focus on greenfield projects

New concession award (USA) – NTE 35W “managed lanes”

M8 (Scotland)

Integration of Enterprise acquisition

Focus on cash flow

No global or volume ambitions

Competitive tool for complex infrastructure projects


Q&A


Appendix

9 M 2 0 1 3 R e s u l t s

I n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a d

M a n a g e d L a n e s T o l l r o a d s

E n t e r p r i s e a c q u i s i t i o n

2 0 1 2 - F u l l y e a r r e s u l t s


SEP ’13 Var%

5,927

632

10.7%

-181

451

7.6%

22

-258

317

532

-78

454

31

485

4.9%

-4.1%

-9.3%

Construction Toll Roads

Services Others Total

2,942.5 318.3

2,658.5 7.9

5,927.1

3,168.7 293.4

2,204.1 -13.6

5,652.6

-7.1 8.5

20.6 n.s. 4.9

-5.9 8.9

23.8

6.8



221.0 199.6 211.5

-0.4 631.6

240.7 226.9 215.0 -24.3 658.3

-8.2 -12.0 -1.6 n.s.

-4.1

-5.9 -11.2 11.1

0.2

SEP´13 SEP´12 VAR.% L-f-L%

VAR.% L-f-L%

5,653

658

11.6%

-161

497

8.8%

-11

-280

312

518

-56

462

14

476

SEP’12

Construction backlog Services backlog

Traffic evolution

ETR-407 (VKT) Chicago Skyway (ADT) Indiana Toll Road (ADT) Ausol I (ADT) Ausol II (ADT) M4 (ADT) Heathrow (million passengers)

VAR%

8,496 15,917

SEP´13

1,760,406 41,673 28,303 11,793 14,024 25,753

54.8

8,699 12,784

SEP´12

1,745,396 42,803 27,749 13,420 14,694 25,625

53.0

-2.3 24.5

VAR%

0.9 -2.6 2.0

-4.6 0.5 0.5 3.6

SEP´13 SEP´12

SEP´13 SEP´12

L-f-L%

6.8%

0.2%

-4.0%

9M 2013 results

EUR MN

Revenues

EBITDA

EBITDA margin

Period depreciation

EBIT

EBIT margin

Disposals & Impairments

Financial results

Equity-accounted affiliates

EBT

Corporate income tax

CONSOLIDATED NET INCOME

Discontinued operations

Minorities

NET INCOME ATTRIBUTED


7,5 8,5

7,2

15,9

2005 9M'13

Services

Construction

Strong Backlog (Construction & Services)

Backlog at Record levels Highest ever International Contribution

Strong backlog of €24.4bn as of 9M’13 (39 months of activity)

(€ b

n)

International

24.4

14.7

+66%

38% 68%

Construction

Services

35%

65%

Domestic

International

27%

73%

Domestic

International


Operating improvement - Heathrow

Departures punctuality

2007 2012

63%

80%

Missed bags per 1,000 passengers

2007 2012

40

15

2007 2012

48%

72%

% passengers rating Heathrow “Excellent” or “Very good”

Overall satisfaction with Heathrow ASQ trend Q2 2006-2012

Heathrow EU average Top EU Quartile


Proceeds applied to:

Early debt repayment

GBP300mn streamed out of the

securitized group (debt

cancelation or dividends)

Crystalizing value

(Completed in January 2013)

EV: GBP 1,500mn

Stansted (Completed in 2012)

EV: GBP 807mn

Edinburgh

Proceeds applied to:

Early debt repayment

16x EBITDA

16.7x EBITDA


Diversifying corporate financing

Size €500 mn

Maturity 2018 (5 years)

Spread +240 bps / 3.375% all-in

Rating BBB- (S&P), BBB- (Fitch)

Enhancing maturities, reducing cost From bank debt to capital markets

“Ferrovial's track record of conservative financial

management, has led us to revise the company's

financial risk profile upward.

We view Ferrovial's management and governance as

"strong." This reflects our view of the company's clear

strategic plans that are consistent with its capabilities,

and its experienced management team, which in our

view has good operational effectiveness and good depth

of expertise.”

Size €500 mn

Maturity 2021 (8 years)

Spread +200 bps / 3.375% all-in

Rating BBB (S&P), BBB- (Fitch)


Revenues 318 9%

EBITDA 200 -11%

EBITDA % 62.7%

Toll roads

9M13 ∆% L-f-L

• Traffic solid in US, weak in Europe

• 407ETR

• EBITDA + 11%

• Dividend paid YTD CAD680mn (CAD430mn in 9M + CAD250mn in Q4)

• Slight traffic growth (+0.9%), improvement in average distance per journey (+0.8%) and a flat number of vehicles

• New concession awards

• NTE 35W in Dallas USD1.4bn, 48 years after construction (2018) Financial close in Sep ‘13 (TIFIA debt & PAB bonds) Rate: Moody’s = Baa3 / S&P = BBB-

• M8 in Scotland GBP415mn new construction 33 years of revenue for operations, maintenance and investment

1 Equity method

M4 +0.5 +3%

Chicago Skyway -2.6% +12%

Ausol -12% -15%

ETR 4071 (VKT) +0.9% +6%

Indiana Toll Road1 +2.0% -3%

9M13 EBITDA ∆% L-f-L

€ million

Traffic


Revenues 2,658 24%

EBITDA 211 +11%

EBITDA % 8,0% -180 bps

Backlog 15,917 +27%

• Spain resilient performance in a difficult

economic context

• Amey growth due to Enterprise’s

consolidation since 1st April

Services

9M’13 ∆% L-f-L

+44% +28% +40%

0% -1.3% +7%

Revenues

EBITDA BACKLOG

L-f-L

UK Spain

Spain 40%

RoW 60%

Spain 35%

RoW 65%

Geographical breakdown

€ million

Backlog Revenues


38% 27% 14% 21%

US Spain Poland

Civil works

81%

Industrial & other

17%

Residential 2%

Revenues 2,942 -6%

EBIT 198 -4%

EBIT % 6.7% +30 bps

Backlog 8,496 0%

Construction

9M13 ∆% L-f-L

Work breakdown Geographical breakdown

• Growth in Texas partially offset declines

in Poland and Spain

• International backlog 73% Domestic

International*

Backlog

Budimex Webber Spain &RoW

Revenues -26% +26% 0%

EBIT -24% +24% -1%

Backlog -1% -1% 0%

€ million

RoW

6,175

2,321


25.00% 20.00% 13.29% 11.88% 10.0% 11.18% 8,65%

Heathrow 54.8 3.6%

HAH (Equity method, FERROVIAL stake 33.65%)

Revenues 1,967 +12%

EBITDA 1,079 +21%

EBITDA % 54.8% +420bps

NET DEBT 12,583 -2.7%

9M13

9M13 ∆%

• The positive traffic growth was due to

higher load-factors & larger aircraft.

• Terminal 5 voted world´s best terminal

• Dividend paid in the first 9M, GBP491mn,

including GBP300mn related to the sale of

Stanstead

• Double digit EBITDA growth

• Debt reduced due to Stansted disposal

• In October Ferrovial sold an additional

8.65% stake in HAH to UK pension fund USS

(€463mn), FER: 25% current participation

(PAX Mn)

∆% L-f-L

Ferrovial Qatar Brittania GIC CIC Alinda

Traffic

Shareholders

100% GBP million

USS


Appendix

9 M 2 0 1 3 R e s u l t s






775 1,937 -1,262 5,219

Figures in $CAN million

Accounting losses

High debt

Shar eho ld er ' s f und Net d ebt

1999:

27x Debt/Ebitda

1999

2012

407 ETR

Would you buy this company…?


V a l u a t i o n ( 1 0 0 % )

Strong dividend flow

Equity valuation sharp increase

Initial equity investment (62%) (326mn)

Dividends (00 - 12) 834mn

10% disposal 640mn

NET CASH IN 1,474mn

2098

M a t u r i t y

100% pay-back

first 10 years

Valuation x14

* December´12 analysts consensus

1999 2012*

14x

7,575

525

407 ETR C a s h g e n e r a t i o n (1999 – 2012)

85 years to maturity

407 ETR

Ferrovial bought this company… Figures in € million


High density population area

Ring road of Toronto 108 km

407

407

East extension

Area of expansion

407 ETR

Location


407 ETR

All Electronic Roadside Tolling System


407 ETR

LOCATION

Greater Toronto Area 23% of Canada

population

TRAFFIC

Alternatives routes are highly congested

HIGH HOUSEHOLD INCOME

46% higher than Canada average

NO REGULATORY REVIEWS

During concession life (99 years)

SPEED

Alternatives routes 40kph vs 100kph at

407

NON-STOP TOLL FACILITY

Fully electronic with interchanges every 3km

TOLL RATE HIGH FLEXIBILITY

Including segment, direction, time of

the day

FAST

Reliable travel times

Fast Safe

Reliable


420

734

2005 2012

316

608

77%

79%

76%

80%

75%

82%

2005 2012

27

8.6

1999 2012

85145 120 135

300

460

600

190

2005 2006 2007 2008 2009 2010 2011 2012

49

97 90

38

7788

7072

2005 2006 2007 2008 2009 2010 2011 2012

85 years to maturity

100% pay-back in first 10 years

Free-tariff revision

≅ 8% CAGR 02-12*

* Tariff increase for light Vehicles in Peak hours regular zone (%)

CAGR: 8.3%

CAGR: 9.8%

104126

2005 2012

CAGR: 2.8%

EBITDA %

407 ETR

Financial overview ($CAD million)

Revenues

EBITDA

OPEX

Capital Expenditure

Dividends

Net Debt / EBITDA X


300

200

500

300

400

300350

400

200 200

2009 2009 2010 2010 2010 2010 2011 2012 2012 2013

10 11

510

287 311

14 14

313

184

2013 2014 2015 2016 2017 2018 2019 2020

Yearly average maturity: Only 3% of total debt

CAD 2,950mn issued since 2009

3,49%3,58%

1,58%1,70%

1,56% 1,60%

1,39%

35

9

30 30

40 39

2009 2009 2010 2011 2012 2012 2013

Maturity

Spread

Extending maturities at historically low cost

years

407 ETR

Recurrent presence in the bond market (June’13)


Appendix

9 M 2 0 1 3 R e s u l t s






A solution to congestion on “existing urban corridors”

Active management of “newly added capacity” through tolling

by means of

Free

Lanes

Free

Lanes

Tolled Lanes Speed >50mph

“Express Tollway within an Existing Highway”

Managed Lanes

New assets landmark


Time of the day

Eastbound Westbound

00.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00

407ETR

12.00 2.00 4.00 6.00 8.00 10.00 12.00 2.00 4.00 6.00 8.00 10.00 12.00

Time of the day

Peak period

(untolled) (tolled)

Managed Lanes

Level of demand

NTE


Tra

vel T

ime

(Min

utes

)

Distance (miles)

For a 7 mile trip, a user can save up to 30-40min in rush hour if using the ML (NTE Eastbound lanes)

Based on NTE data

45

40

35

30

25

20

15

10

5

0

30-40min

7 miles

ML will provide users a reliable and certain travel time

0 1 2 3 4 5 6 7

(*) Peak period observations

Managed Lanes

Travel time reliability (NTE)


CINTRA MERIDIAM DALLAS

FIRE&POLICE PENSION SCHEME

KEY CHARACTERISTICS

SHAREHOLDERS’ STRUCTURE

108Km Electronic 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

52 years

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

● Heavy congested area , almost 250.000 cars per day

● 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

FINANCIAL STRUCTURE

EQUITY DEBT PUBLIC FUNDS

Managed Lanes

Lyndon B Johnson

51% 42% 7%

25% 54% 20%




KEY CHARACTERISTICS


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




● Heavy congested area , almost 200.000 cars per day

● No toll-booths, fully electronic free flow tolling

system








controlled access

FINANCIAL STRUCTURE


Managed Lanes

North Tarrant Express

57% 33% 10%

21% 52% 27%


50% 39% 10%



KEY CHARACTERISTICS


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)

52 years




● 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








controlled access

32% 59% 9%

FINANCIAL STRUCTURE


APG

Managed Lanes

North Tarrant Express 35W

1%


• 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 un-wrapped bond issuance for a toll road.

• First time TIFIA allowed additional debt to be raised beyond its approved federal subsidy cap.

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

21%

52%

27%

25%

54%

20%

Figures in US Dollars

Managed Lanes

Financial Overview

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 m

243 m (57%) 141 m (33%) 43 m (10%)

1,050 m

400 m 650 m

537 m

2.70 bn

665 m

339 m (51%) 282 m (42%) 44 m (7%)

1,465 m

615 m 850 m

496 m

1.36 bn

430 m

215 m (50%) 167 m (39%) 43 m (10%) 4 m (1%)

805 m

274 m 531 m

127 m

Total Investment: Private Equity:

Cintra: Meridiam: DPFPS: APG:

Total Debt:

PABs: TIFIA:

Public Funds:


Appendix

9 M 2 0 1 3 R e s u l t s






• Ferrovial Services

• Integration of Enterprise into Amey, Ferrovial Services’ subsidiary in the UK Acquirer

• Acquisition 100% of Enterprise 1)

• Revenue: £1.1 billion; EBITDA: £60 million; employees: 9,600 (2012) 1) Scope

• Firm value: £385 million Price

• Use of Ferrovial Services’ existing cash balance Financing

Other • Completion subject to European Commission clearance

Note: EnterpriseMouchel JV not included. Defence JVs consolidated proportionally

Enterprise acquisition


Amey+Enterprise Solid Foundations for Profitable Growth

Revenues CAGR 2010-12

Order Book

£59.9m 5.4%

£95.9m 7.9%

EBITDA EBITDA Margin

£5.9bn £2.3bn

Amey + Enterprise

£155.8m 6.7%

£8.2bn

Pipeline £8bn £12bn £19.5bn

Capex £8.5m £18.6m £27.1m

£1.1bn 4.6%

£1.2bn 13.7%

£2.3bn 9.1%

Revenue Growth

Operational Efficiency

2012 data

Note: EnterpriseMouchel JV not included. Defence JVs consolidated proportionally


Enterprise - Major UK Services Provider

2012 Revenues: £1.1 billion

224

181

112

111

• Water

• Power

• Gas

• Defence

Utilities & Defence

Government Services

251

129

76

• Environment

• Local Roads

• Social Housing & FM

c.20 utilities

Wide geographical coverage

c.50 councils

Note: Enterprise Mouchel JV not included. Defence JVs consolidated proportionally


Strategic Rationale

2

3

4

5

1 Entry into Utilities services

Balanced portfolio of activities

Scale and geographic coverage in UK

Cost synergies Leading UK services provider

with broad capabilities,

diverse markets and

comprehensive geographical

coverage

Service enhancement through Amey’s asset management skills


Diverse and Balanced Portfolio

Note: EnterpriseMouchel JV not included. Defence JVs consolidated proportionally. Breakdown of Enterprise activities: FM includes Defence and Social Housing

Major Player in the UK

2012 data

Revenue £1.1bn Revenue £1.2bn Revenue £2.3bn

Roads & Rail 60% FM

20%

Environm. 1%

Consulting 19%

FM 17%

Roads 12%

Environm. 23%

Utilities 48%

Roads & Rail 39%

Utilities 22%

FM 18%

Environm. 11%

Consult. 10%


High Potential of Value Creation

Synergies

Cost reduction £28m pa

Asset Management contribution £11m pa

Efficient Execution

Rigorous and systematic approach

Ferrovial Services proven track record

Market Growth

Utilities 5-7%

Local Government 3-5%

Value Creation

• IRR c.15%

• Capabilities to be exported to other countries


Platform for Growth in Attractive UK Markets

Market size

CAGR 2013-15E

£19bn 5-7%

• Focus on maintenance spend in new regulatory cycles

• Asset management approach

• Outsourcing

• Smart infrastructure

£14bn 3-5% 1)

Acceleration of growth in Local Government

• Outsourcing

• Service Integration

• Development of new treatment capacity

• Severn Trent

• United Utilities

• Western Power

• Kent

• Staffordshire

• Liverpool

Growth drivers

Entry to Utilities market

Enterprise customer base (examples)

1) Includes Environmental Services and Local Roads Source: UK Department for Communities and Local Government, UK Department for Transport, market reports, companies, Ofwat, Ferrovial Services analysis


£40m Recurring Synergies from 2015

14

31

39

2013 2014 2015

c.£40m recurring synergies in 2015

Additional revenue

11

Cost reduction

28

• Focus on key cost and revenue drivers

− Procurement and direct costs

− Central and divisional overheads

− Integrated sale of asset management and consulting services

• Integration Plan implemented by a Project

Office with dedicated resources

• Assessment and retaining of Enterprise´s talent and best operational practices

• Estimated one-off investment c.£40m

Systematic approach to integration


Appendix

9 M 2 0 1 3 R e s u l t s






DEC’12 Var%

Revenues

EBITDA

EBITDA margin

Period depreciation

EBIT

EBIT margin

Disposals & Impairments

Financial results

Equity-accounted affiliates

EBT

Corporate income tax

CONSOLIDATED NET INCOME

Discontinued operations

Minorities

NET INCOME ATTRIBUTED

7,684.4

926.8

12.1%

218.8

708.0

9.2%

52.0

-289.6

283.7

754.1

-108.2

645.8

63.9

709.7

+3.2%

+13.4%

+13.2%

+4.5%



4,325.6 381.4

2,951.1 28.2

7,686.4

4,243.8 389.7

2,820.6 -8.3

7,445.8

1.9 -2.1 4.6 n.s. 3.2

0.1 -3.1 1.3

0.9



336.9 271.6 313.6

4.6 926.8

246.4 283.2 311.8 -24.0 817.2

36.8 -4.1 0.6 n.s.

13.4

33.0 -5.1 -2.0

11.2

DEC´12 DEC´11 VAR.-% L-f-L%

VAR.% L-f-L%

7,445.8

817.2

11.0%

192.0

625.2

8.4%

98.8

-303.3

19.6

440.3

-61.2

379.1

844.1

19.4

1,242.5

DEC’11

Construction backlog Services backlog

Traffic evolution

ETR-407 (VKT) Chicago Skyway (ADT) Indiana Toll Road (ADT) Autema (ADT) Ausol I (ADT) Ausol II (ADT) Heathrow (million passengers)

VAR%

8,699 12,784

DEC´12

2,340,004 42,228 27,459 15,056 12,537 14,099

70.0

9,997 12,425

DEC´11

2,325,517 42,066 27,142 19,114 14,254 15,576

69.4

-13.0 2.9

VAR%

0.6 0.4 1.2

-21.2 -12.0

-9.5 0.9

DEC´12 DEC´11

DEC´12 DEC´11

L-f-L%

+0.9%

+11.2%

+10.6%

FY 2012 results

EUR MN


187 205 188 241 165 164

491 33 34 79

92

111

283 288

464 406

373

298

100

2006 2007 2008 2009 2010 2011 2012

Swissport Construction

Solid Cash Flow Generation

Strong cash flow generation from construction and services activities

Cash flow upstream from infrastructure projects

Resilient performance through the crisis

(sold in 2011)

188

406

130178 182

387

209

2006 2007 2008 2009 2010 2011 2012

503 527

731 739

649

462

Ex - Infrastructure Projects Infrastructure Projects (operating cash flow) (dividends)

591

Services


Heathrow +12.7%

New Contracts 407ETR extension

Balance Sheet

Operational Growth (Tariffs) 407ETR ≅ +8%

Sheffield maintenance US 406 Virginia

LT bond issuance 407ETR dividend BAA Initial dividend

Assets rotation 16.34% HAH Stansted airport

Edinburgh airport

X16.0 EV/EBITDA X16.7 EV/EBITDA

What have we done in 2012?


Revenues 381 -3%

EBITDA 272 -5%

EBITDA % 71.2%

Toll roads

2012 ∆% L-f-L

•€220mn dividends from projects (2011, €159mn)

•Traffic recovery in US, weak in Europe

•New projects awards

ETR East Extension (Canada) CAD1,100 mn

A66 (Spain) €192 mn

•Pipeline

Focus on the US

New office in Australia & Colombia

Selective monitoring of emerging markets

1 Financial asset 2 Equity method

Autema1 -21% +35%

Chicago Skyway +0.4% +5%

Ausol -11% -9%

ETR 4072 +0.6% +10%

Indiana Toll Road2 +1.2% +4%

2012 EBITDA ∆% L-f-L

€ million

Traffic


407ETR (Equity method, FERROVIAL stake: 43%)

Revenues 734 +9%

EBITDA 608 +10%

EBITDA % 82.9% +90bps

Net debt 5,219 +8%

2012 ∆% L-f-L

353

608

2006 2007 2008 2009 2010 2011 2012

EBITDA (CAD million)

Resilient performance

Dividend

(CAD m

illion)

• Sharp increase in dividend

• EBITDA growth (+10%)

Traffic (+0.6%)

Opex optimization (+3,8%)

Tariff growth

• Long term bond issuances

30 years / CAD400mn / 4.19%

40 years / CAD200mn / 3.98%

No relevant maturities until 2015

190

300 459

600

2009 2010 2011 2012

CAD million


Revenues 2,951 +1%

EBITDA 314 -2%

EBITDA % 10.6% -50 bps

Backlog 12,784 +2 %

• Strong cash flow generation €491mn

(2011, €164mn)

• Resilient performance in a difficult

economic context

• Record backlog at year end

Services

2012 ∆% L-f-L

+8% -3%

+12%

-5% -1%

-10%

Revenues

EBITDA BACKLOG

L-f-L

UK Spain

Spain 49% UK

51%

Spain 44%

UK 56%

Geographical breakdown

€ million

Backlog Revenues


Civil works

79%

Industrial & other

18%

Residential 3%

Revenues 4,326 0%

EBIT 298 +35%

EBIT % 6.9% +190 bps

Backlog 8,699 -14%

Construction

2012 ∆% L-f-L

Work breakdown Geographical breakdown

• Cash flow generation (€100mn) despite

declining Spanish sales

• International growth offsets Spanish

performance

• International backlog 70% of total 6.060

2.640

S er ie 1

Domestic

International

Backlog

Budimex ex_PNI* Webber Spain

&RoW

Revenues +4% +28% -9%

EBIT +8% +41% +63%

Backlog -27% -21% -3%

€ million

*PNI was excluded from Budimex’s consolidation perimeter in November 2012, after filling for creditor protection. PNI impact: EBIT -€35mn


33.65% 20.00% 13.29% 11.88% 10.0% 11.18%

Heathrow 70.0 0.9%

Scotland 10.5 5.5%

UK airports 99.7 0.5%

HAH (Equity method, FERROVIAL stake 33.65%)

Revenues 2,646 +8%

EBITDA 1,355 +11%

EBITDA % 51.2% +125 bps

NET DEBT 12,931

2012

2012 ∆%

• €143mn dividends from HAH

HAH 100% 2012 dividend (GBP 240mn)

• Second consecutive year of record Heathrow

traffic and passenger satisfaction

• Double digit EBITDA growth

• Capital structure strengthened

GBP3.0bn issued in 2012

Extending maturities, markets & currencies

• Successful divestments above expectations

100% HAH implied equity value GBP4,500mn

Stansted GBP1.5bn (x16.0 EV/EBITDA)

Edinburgh GBP807mn (x16.7 EV/EBITDA)

(PAX Mn)

∆% L-f-L

Ferrovial Qatar Brittania GIC CIC Alinda

Traffic

Shareholders

100% GBP million


Over £3 billion in bond issuance in 2012

£1.7 billion undrawn revolving credit

facilities

HAH can meet capital investment, debt

maturities, interest and distributions till

mid-2015

529

1,103

2006 2007 2008 2009 2010 2011 2012

HEATHROW – Financial improvement

EBITDA (GBP million)

Resilient performance*

Average life of debt

Debt due within 3 years

Liquidity horizon

Dec’ 2011 Dec’ 2012

9.8 years 10.1 years

£3.7 billion £1.8 billion

20 months 30 months*

Bond proportion of

total debt 77% 94%

*Including impact of Stansted disposal proceeds

Financing transformed

* Heathrow airport, excluding Heathrow express

57

HAH Financing Structure

ADIL

NewCo

BAA Ltd

Des Sub-Holdco

Sub-Holdco

Security Parent

Designated Airports

Non Designated

Holdco

Non Designated

Group

Subordinated Facility £1,566Mn

Non-Designated Facilities Bank facility: £1,000m

Capex & WC facility: £255m

Security Group Facilities Existing Bonds: £4,499m

Refinancing Facility: £4,400m Capex Facility: £2,700m

Working Capital Facility: £50m EIB Facility: £435m

Liquidity Facility: £600

2012 HAH Capital structure 2008 Refinancing

FGP Top Co Toogle Facility £702Mn

ADIL

Heathrow Airport Holding

Heathrow Finance

Heathrow Airport

Non Designated

Airports

Subordinated Facility £728Mn

Non-Designated bank Financing: £406m

Bank facilities: £712m

FGP Top Co

Senior Loan Facility £600Mn

Heathrow funding

Bond facilities: £10,240m


(1) Proportional: All EBITDA figures are aggregated in a proportional basis to the Ferrovial equity stake in each company or project.

Diversified portfolio

Ex – Infrastructure Projects Infrastructure Projects

Services Construction Toll Roads Airports

Non Capital Intensive PROFIT GENERATION

CASH GENERATION

Fully consolidated Method

€927Mn Proportional (1)

€1,671Mn

Capital Intensive LONG DURATION

LONG TERM VALUE

EBITDA FY´12

Services

Toll Roads

Construction

Airports

34%

37%

29% 19%

29% 19%

33%

64% Spain

16% UK

12% US

8% RoW

34% Spain

42% UK

21% US

3% RoW

59 E-mail: [email protected] – Tel: +34 91 586 27 30 59

• Dividend payment to parent

• Asset rotation

• Limited investment requirements

• Strong CF generation - upstream to parent

Equity contribution to new projects

(1) Includes projects from airports, toll roads, construction and services

Cintra dividends over the period comparable to equity investment (current portfolio)

Cash generation through the group (2007-2012)

Parent

Ex – Infrastructure Projects Infrastructure Projects (1)

€1.7bn

Dividends €1.4bn Asset rotation €3.4bn

€1.9bn

Operating Cash flow €3.5bn Asset rotation €0.9bn


24%

Dividends From infra projects 62%

Activity Cash Flow Ex-Infra projects Excluding M&A operations

21%

Equity Invested In infra projects 77%

Cash Flow generation 2010-2012

61% 23%

13% RoW

17% RoW

10%


2009 2010 2011 2012

Shareholder remuneration

Dividend 2012

Interim 1.00

Complementary 0.25

TOTAL 1.25

(Euros/share)

0.40 0.42 0.45

1.25


INVESTOR RELATIONS DEPARTMENT C/ Príncipe de Vergara, 135

28002 MADRID (Spain) Tlf: +34 91 586 27 30 Fax: +34 91 586 28 69 e-mail: [email protected]

website: www.ferrovial.com

Investors Presentation 2013 | Presentación Inversores 2013

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Transcript of Investors Presentation 2013 | Presentación Inversores 2013