Investors Presentation 2013 | Presentación Inversores 2013

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Investors Presentation 2013 | Presentación Inversores 2013

  1. 1. 1 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  2. 2. 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”. 2 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  3. 3. Agenda • Appendix 3 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  4. 4. shaping the future Sustainable infrastructures and cities operational excellence and innovation, creating value for society, investors, employees, customers… 4 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  5. 5. How to manage Financially Operationally 5 Low level of corporate debt Asset rotation to support growth Efficient asset allocation Operational value generation E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  6. 6. Ferrovial Business Overview 2012 figures € 145m n Dividends from Airports € 220m n airport operator  INFRASTRUCTURE Leading European  Ownership and manager of 4 UK airports, including Heathrow PROJECTS Ring fenced debt Dividends from Toll roads Capital intensive / Inflation protected / LT duration & financing    Leading sponsor of tollroads infrastructure development worldwide Key developer of ETR 407 Design, build, finance & operation PARENT COMPANY Controlling Shareholder 43% Free float 57%  € 337m n EXCL INFRA PROJECTS EBITDA from Construction   Net cash position € 314m n EBITDA from Services 6   Non capital intensive / Backlog visibility / EPS accretive E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 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
  7. 7. Debt Structure EX–INFRA PROJECTS Net debt evolution ex-infra projects 1.489 NET CASH €835n 907 31 1,987 1,547 1,172 Net debt (€mn) 3,064 2006 Infrastructures P R O J E C T S 2007 2008 2009 2010 2011 2012 9M13 Debt allocated at project level Projects under development not generating EBITDA NET DEBT €6,910mn €mn NTE TOLL ROADS* Net debt 542 LBJ 839 TOTAL Debt €6,584mn * €1.135mn related to R4 & OLR, both filed for creditor protection 7 835 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 1,388 21% Of Toll roads net debt
  8. 8. No meaningful maturities until 2018 Financial position (ex-infra projects) 2013-2021 maturities 1BN € million 60 22 2013 2014 82 21 2016 2015 11 2017 2018 + Liquidity position Sep 2013 € million 1.013 3.102 2.090 Total cash 8 Undrawn lines E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 Total liquidity
  9. 9. Highlights (2013 year to date) 1 Financial Co rp o ra te b o n d s 2 Future E n te rp rise a c q u isitio n ( S e r v i c e s ) N e w m a n a g e d la n e s ( Te x a s ) 3 Operations €24b n b a c k lo g Value Airp o rts d iv e s tm e nt H AH d iv e s tm e nt (Stansted) Net cash L iq u id ity 4 (Construction & Services) 8.65% stake sale to UK pension fund (€463mn) 5 9 Cash Position ex-infra projects €835mn E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 / €3.1bn
  10. 10. Business Overview Airports New concession award (USA) – NTE 35W “managed lanes” M8 (Scotland)  Integration of Enterprise acquisition Focus on cash flow  No global or volume ambitions  10 Focus on greenfield projects  C o n s t r u c t i on   Services Q6 (2014-2019) Tariffs decision / January 2014 (proposal: RPI + 0%)  ro a ds Focus on quality service – Higher traffic due to load – factor  Toll  Competitive tool for complex infrastructure projects E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  11. 11. Q&A 11 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  12. 12. Appendix 9M 2013 Results Introduction Managed to Lanes 4 0 7 E T R To l l To l l r o a d s Enterprise acquisition 2012 - Full year results 12 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 road
  13. 13. 9M 2013 results EUR MN SEP´13 SEP ’13 SEP’12 Revenues 5,927 5,653 4.9% 6.8% EBITDA 632 658 -4.1% 0.2% EBITDA margin 10.7% 11.6% Period depreciation -181 EBIT 451 497 EBIT margin 7.6% 8.8% Disposals & Impairments 22 -11 Financial results -258 317 312 EBT 532 518 Corporate income tax -78 -56 Construction backlog Services backlog CONSOLIDATED NET INCOME 454 462 Traffic evolution VAR.% L-f-L% -280 Equity-accounted affiliates SEP´12 -161 L-f-L% Construction Toll Roads Services Others Total 2,942.5 318.3 2,658.5 7.9 5,927.1 SEP´13 -9.3% -4.0% Construction Toll Roads Services Others Total 221.0 199.6 211.5 -0.4 631.6 Minorities 31 14 NET INCOME ATTRIBUTED 485 476 3,168.7 293.4 2,204.1 -13.6 5,652.6 SEP´12 240.7 226.9 215.0 -24.3 658.3 SEP´13 ETR-407 (VKT) Discontinued operations 13 Var% Chicago Skyway (ADT) Indiana Toll Road (ADT) Ausol I (ADT) Ausol II (ADT) M4 (ADT) Heathrow (million passengers) E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 8,496 15,917 SEP´13 1,760,406 41,673 28,303 11,793 14,024 25,753 54.8 -7.1 8.5 20.6 n.s. 4.9 -5.9 8.9 23.8 6.8 VAR.% L-f-L% -8.2 -12.0 -1.6 n.s. -4.1 SEP´12 -5.9 -11.2 11.1 0.2 VAR% 8,699 12,784 -2.3 24.5 SEP´12 VAR% 1,745,396 42,803 27,749 13,420 14,694 25,625 53.0 0.9 -2.6 2.0 -4.6 0.5 0.5 3.6
  14. 14. Strong Backlog (Construction & Services) Backlog at Record levels Highest ever International Contribution Construction 24.4 27% +66% 14.7 73% 15,9 Services Domestic Construction International (€ bn) 7,2 8,5 2005 International 7,5 9M'13 38% 68% Services 35% 65% Domestic International Strong backlog of €24.4bn as of 9M’13 (39 months of activity) 14 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  15. 15. Operating improvement - Heathrow Departures punctuality Missed bags per 1,000 passengers 40 80% 63% 15 2007 2012 2007 % passengers rating Heathrow “Excellent” or “Very good” 2012 Overall satisfaction with Heathrow ASQ trend Q2 2006-2012 72% 48% 2007 15 2012 Heathrow E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 EU average Top EU Quartile
  16. 16. Crystalizing value Stansted Edinburgh (Completed in January 2013) (Completed in 2012) EV: GBP 1,500mn EV: GBP 807mn 16x 16.7x EBI TDA EBI TDA Proceeds applied to: Proceeds applied to:  Early debt repayment  Early debt repayment  GBP300mn streamed out of the securitized group (debt cancelation or dividends) 16 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  17. 17. Diversifying corporate financing Enhancing maturities, reducing cost From bank debt to capital markets Size Maturity Spread Rating €500 mn 2018 (5 years) +240 bps / 3.375% all-in BBB- (S&P), BBB- (Fitch) “Ferrovial's track record of conservative financial management, has led us to revise the company's Size Maturity Spread Rating 17 €500 mn 2021 (8 years) +200 bps / 3.375% all-in BBB (S&P), BBB- (Fitch) 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.” E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  18. 18. Toll roads € million 9M13 ∆% Revenues 318 9% EBITDA 200 -11% EBITDA % 9M13 ∆% L-f-L L-f-L 62.7% • 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 Traffic EBITDA • New concession awards +0.5 +3% -2.6% +12% -12% -15% ETR 4071 (VKT) +0.9% +6% Indiana Toll Road1 +2.0% -3% M4 Chicago Skyway Ausol • 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 18 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  19. 19. Services € million ∆% 9M’13 Spain UK L-f-L 2,658 Backlog -180 bps 15,917 EBITDA % +11% 8,0% EBITDA 24% 211 Revenues +27% +44% Revenues 0% +28% EBITDA -1.3% +40% BACKLOG +7% L-f-L Geographical breakdown Revenues Backlog • Spain resilient performance in a difficult economic context Spain 35% Spain 40% RoW 60% 19 RoW 65% • Amey growth due to Enterprise’s consolidation since 1st April E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  20. 20. Construction € million 9M13 ∆% 2,942 -6% 198 -4% Budimex L-f-L Webber Spain &RoW EBIT 6.7% Backlog 0% Backlog Geographical breakdown Domestic International* 38% US 20 Residential 2% 27% Spain Industrial & other 17% 6,175 +26% 0% -24% +24% -1% -1% -1% 0% Backlog • Growth in Texas partially offset declines Work breakdown 2,321 -26% +30 bps 8,496 EBIT % Revenues EBIT Revenues in Poland and Spain • International backlog 73% 81% 14% 21% Civil works Poland RoW E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  21. 21. HAH (Equity method, FERROVIAL stake 33.65%) 100% GBP million 9M13 ∆% • L-f-L Revenues 1,967 1,079 +21% EBITDA % 54.8% +420bps NET DEBT 12,583 higher load-factors & larger aircraft. +12% EBITDA The positive traffic growth was due to -2.7% • Terminal 5 voted world´s best terminal • Dividend paid in the first 9M, GBP491mn, including GBP300mn related to the sale of Traffic 9M13 (PAX Mn) Stanstead ∆% • • Shareholders Ferrovial 21 20.00% Qatar 13.29% Brittania 11.88% GIC In October Ferrovial sold an additional 3.6% 54.8 25.00% Debt reduced due to Stansted disposal • Heathrow Double digit EBITDA growth 10.0% 11.18% 8,65% 8.65% stake in HAH to UK pension fund USS CIC (€463mn), FER: 25% current participation Alinda USS E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  22. 22. Appendix 9M 2013 Results Introduction Managed to Lanes 407 ETR Toll To l l r o a d s Enterprise acquisition 2012 - Full year results 22 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 road
  23. 23. 407 ETR Would you buy this company…? Figures in $CAN million Shareholder's fund Net debt 1999: 1999 775 1,937 27x Debt/Ebitda 23 -1,262 5,219 Accounting losses 2012 High debt E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  24. 24. 407 ETR Ferrovial bought this company… Figures in € million Cash generation Initial equity investment (62%) Valuation 407 ETR (1999 – 2012) (326mn) Dividends (00 - 12) 640mn 100% pay-back 7,575 834mn 10% disposal (100%) NET CASH IN 1,474mn 14x first 10 years Valuation x14 525 1999 Maturity 2098 85 years to maturity Strong dividend flow Equity valuation sharp increase * December´12 analysts consensus 24 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 2012*
  25. 25. 407 ETR Location Area of expansion 407 East extension High density population area Ring road of Toronto 108 km 407 25 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  26. 26. 407 ETR All Electronic Roadside Tolling System 26 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  27. 27. Fast 407 ETR Safe R eliable LOCATION Greater Toronto Area 23% of Canada population HIGH HOUSEHOLD INCOME 46% higher than Canada average SPEED NO REGULATORY REVIEWS Alternatives routes 40kph vs 100kph at During concession life (99 years) 407 TOLL RATE HIGH FLEXIBILITY TRAFFIC Alternatives routes are highly congested Including segment, direction, time of the day NON-STOP TOLL FACILITY Fully electronic with interchanges every 3km 27 FAST Reliable travel times E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  28. 28. 407 ETR Financial overview ($CAD million) Capital Expenditure Revenues 734 CAGR: 8.3% 97 72 420 85 years to maturity 2005 49 77 88 70 38 2005 2006 2007 2008 2009 2010 2011 2012 2012 OPEX Dividends 126 CAGR: 2.8% 104 90 600 100% pay-back in first 10 years 460 300 190 85 2005 80% 608 135 Net Debt / EBITDA X EBITDA % CAGR: 9.8% 120 2005 2006 2007 2008 2009 2010 2011 2012 2012 EBITDA 145 Free-tariff revision 27 ≅ 8% CAGR 02-12* 82% 79% 316 77% 8.6 76% 75% 2005 28 2012 * Tariff increase for light Vehicles in Peak hours regular zone (%) E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 1999 2012
  29. 29. 407 ETR Recurrent presence in the bond market Extending maturities at historically low cost (June’13) CAD 2,950mn issued since 2009 500 Maturity 3,49% 40 3,58% 30 39 years 400 300 300 200 2009 2010 2010 2010 2011 2012 2012 2013 510 1,39% 287 9 313 311 184 5 2009 2010 2011 2012 2012 2013 10 2014 14 11 2013 29 2010 Yearly average maturity: Only 3% of total debt 1,56% 1,60% 1,70% 2009 200 30 Spread 3 400 200 2009 1,58% 300 350 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 2015 2016 2017 14 2018 2019 2020
  30. 30. Appendix 9M 2013 Results Introduction Managed to Lanes 4 0 7 E T R To l l Toll roads Enterprise acquisition 2012 - Full year results 30 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 road
  31. 31. Managed Lanes New assets landmark “Express Tollway within an Existing Highway” Free Tolled Lanes Free Lanes Speed >50mph Lanes A solution to congestion on “existing urban corridors” by means of Active management of “newly added capacity” through tolling 31 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  32. 32. Managed Lanes Level of demand NTE 407ETR (untolled) (tolled) Peak period Westbound Eastbound 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 12.00 2.00 4.00 Time of the day 32 6.00 8.00 10.00 12.00 2.00 4.00 Time of the day E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 6.00 8.00 10.00 12.00
  33. 33. Managed Lanes Travel time reliability (NTE) Based on NTE data ML will provide users a reliable and certain travel time Travel Time (Minutes) 7 miles 45 40 35 30 30-40min 25 20 15 10 5 0 0 1 2 3 4 5 6 7 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) (*) Peak period observations 33 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  34. 34. Managed Lanes Lyndon B Johnson KEY CHARACTERISTICS DESCRIPTION: 108K m Electronic toll 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 SHAREHOLDERS’ STRUCTURE 51% system ● Tollway within a freeway: Motorists will be provided 42% CINTRA MERIDIAM with a choice of driving in non-tolled GP lanes or 7% DALLAS FIRE&POLICE PENSION SCHEME 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 ● FINANCIAL STRUCTURE 25% Physically separated from the GP lanes with 54% EQUITY DEBT controlled access 34 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 20% PUBLIC FUNDS
  35. 35. Managed Lanes North Tarrant Express KEY CHARACTERISTICS DESCRIPTION: Dallas-Fort Worth Metroplex, Major thoroughfares between Fort Worth and DFW Airport LENGTH: CONCESSION PERIOD: TARIFF POLICY: 13 mile section (IH 820 & SH 183 in Tarrant County) 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 200.000 cars per day ● No toll-booths, fully electronic free flow tolling SHAREHOLDERS’ STRUCTURE 57% system ● Tollway within a freeway: Motorists will be provided 33% CINTRA MERIDIAM with a choice of driving in non-tolled GP lanes or 10% DALLAS FIRE&POLICE PENSION SCHEME 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 ● FINANCIAL STRUCTURE 21% Physically separated from the GP lanes with EQUITY controlled access 35 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 52% 27% DEBT PUBLIC FUNDS
  36. 36. Managed Lanes North Tarrant Express 35W KEY CHARACTERISTICS DESCRIPTION: 2 “managed lanes” in each direction of the IH-35W, segments 3A and 3B (3B segment to be built by TxDOT) LENGTH: CONCESSION PERIOD: TARIFF POLICY: 10.2 mile section (segments 3A 6.2 miles and 3B 4 miles) 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 ● The corridor south to the 3A segment is currently SHAREHOLDERS’ STRUCTURE ranked as the most congested roadway in Texas. 50% ● No toll-booths, fully electronic free flow system ● Tollway within a freeway: Motorists will be provided 39% CINTRA MERIDIAM with a choice of driving in non-tolled GP lanes or 1% 10% APG DALLAS FIRE&POLICE PENSION SCHEME 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 FINANCIAL STRUCTURE 32% from the GP lanes with EQUITY controlled access 36 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 59% DEBT 9% PUBLIC FUNDS
  37. 37. Managed Lanes Financial Overview Figures in US Dollars Total Investment: Private Equity: 2.05 bn 21% Cintra: Meridiam: DPFPS: APG: 2.70 bn 427 m 25% 243 m (57%) 141 m (33%) 43 m (10%) 52% Total Debt: PABs: TIFIA: 27% 54% 1,050 m 32% 20% 537 m 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. • 59% 1,465 m 805 m 274 m 531 m 9% 496 m First time that a U.S.-based pension fund made a direct investment in a highway concession. 430 m 215 m (50%) 167 m (39%) 43 m (10%) 4 m (1%) 615 m 850 m • 37 665 m 339 m (51%) 282 m (42%) 44 m (7%) 400 m 650 m Public Funds: 1.36 bn 127 m • First privately-financed road development project of its kind to reach financial close in 2010. • Very competitive capital structure in spite of the difficult market conditions. • Texas’ third big recent road project to reach financial close since 2008. • Strong portion of the debt from TIFIA program with its flexible amortizing structure during the first 25 years. E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  38. 38. Appendix 9M 2013 Results Introduction Managed to Lanes 4 0 7 E T R To l l To l l r o a d s Enterprise acquisition 2012 - Full year results 38 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 road
  39. 39. Enterprise acquisition Scope • Acquisition 100% of Enterprise 1) • Revenue: £1.1 billion; EBITDA: £60 million; employees: 9,600 (2012) 1) Acquirer • Ferrovial Services • Integration of Enterprise into Amey, Ferrovial Services’ subsidiary in the UK Price • Firm value: £385 million Financing • Use of Ferrovial Services’ existing cash balance Other • Completion subject to European Commission clearance Note: EnterpriseMouchel JV not included. Defence JVs consolidated proportionally 39 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  40. 40. Amey+Enterprise Solid Foundations for Profitable Growth Amey + Enterprise 2012 data Revenues £2.3bn Order Book £5.9bn £2.3bn £8.2bn £8bn £12bn £19.5bn EBITDA Operational Efficiency £1.1bn CAGR 2010-12 13.7% Pipeline Revenue Growth £1.2bn £95.9m £59.9m £155.8m £8.5m £18.6m £27.1m EBITDA Margin Capex 7.9% Note: EnterpriseMouchel JV not included. Defence JVs consolidated proportionally 40 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 4.6% 5.4% 9.1% 6.7%
  41. 41. Enterprise - Major UK Services Provider 2012 Revenues: £1.1 billion Wide geographical coverage • Water Utilities & Defence 224 • Power 181 • Gas 112 • Defence 111 251 • Environment Government Services • Local Roads • Social Housing & FM 129 76 c.20 utilities Note: Enterprise Mouchel JV not included. Defence JVs consolidated proportionally 41 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 c.50 councils
  42. 42. Strategic Rationale 1 Entry into Utilities services 2 Cost synergies 3 Leading UK services provider Service enhancement through Amey’s asset management skills 4 5 42 Balanced portfolio of activities Scale and geographic coverage in UK E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 with broad capabilities, diverse markets and comprehensive geographical coverage
  43. 43. Diverse and Balanced Portfolio Major Player in the UK Revenue £1.2bn Revenue £2.3bn Revenue £1.1bn 2012 data Environm. 1% Roads 12% Consulting 19% FM 20% Roads & Rail 60% FM 17% Utilities 48% Environm. 23% Consult. 10% Environm. 11% FM 18% Utilities 22% Note: EnterpriseMouchel JV not included. Defence JVs consolidated proportionally. Breakdown of Enterprise activities: FM includes Defence and Social Housing 43 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 Roads & Rail 39%
  44. 44. High Potential of Value Creation Market Growth Synergies  Cost reduction £28m pa  Utilities 5-7%  Asset Management contribution £11m pa  Local Government 3-5% Value Creation • IRR c.15% • Capabilities to be exported to other countries Efficient Execution  Rigorous and systematic approach  Ferrovial Services proven track record 44 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  45. 45. Platform for Growth in Attractive UK Markets Market size CAGR 2013-15E Growth drivers • Focus on maintenance spend Entry to Utilities market Acceleration of growth in Local Government in new regulatory cycles £19bn £14bn 5-7% 3-5% 1) • Asset management approach • Outsourcing • Smart infrastructure • Outsourcing • Service Integration • Development of new treatment capacity Enterprise customer base (examples) • Severn Trent • United Utilities • Western Power • Kent • Staffordshire • Liverpool 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 45 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  46. 46. £40m Recurring Synergies from 2015 c.£40m recurring synergies in 2015 39 31 Additional revenue 11 Systematic approach to integration • 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 14 Cost reduction 28 Office with dedicated resources • Assessment and retaining of Enterprise´s talent and best operational practices • Estimated one-off investment c.£40m 2013 46 2014 2015 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  47. 47. Appendix 9M 2013 Results Introduction Managed to Lanes 4 0 7 E T R To l l To l l r o a d s Enterprise acquisition 2012 - Full year results 47 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 road
  48. 48. FY 2012 results EUR MN DEC’12 DEC’11 Revenues 7,684.4 7,445.8 +3.2% EBITDA 926.8 817.2 +13.4% +11.2% EBITDA margin 12.1% 218.8 192.0 EBIT 708.0 625.2 EBIT margin 9.2% 8.4% Disposals & Impairments 52.0 98.8 Financial results -289.6 -303.3 Equity-accounted affiliates 283.7 754.1 440.3 VAR.-% L-f-L% 19.6 EBT DEC´11 11.0% Period depreciation DEC´12 +0.9% Corporate income tax -108.2 -61.2 CONSOLIDATED NET INCOME 645.8 379.1 Discontinued operations 844.1 Minorities 63.9 19.4 NET INCOME ATTRIBUTED 709.7 1,242.5 48 Var% L-f-L% Construction Toll Roads Services Others Total 4,325.6 381.4 2,951.1 28.2 7,686.4 DEC´12 +13.2% +10.6% Construction Toll Roads Services Others Total 336.9 271.6 313.6 4.6 926.8 4,243.8 389.7 2,820.6 -8.3 7,445.8 DEC´11 246.4 283.2 311.8 -24.0 817.2 1.9 -2.1 4.6 n.s. 3.2 0.1 -3.1 1.3 0.9 VAR.% L-f-L% 36.8 -4.1 0.6 n.s. 13.4 33.0 -5.1 -2.0 11.2 +4.5% DEC´12 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) E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 8,699 12,784 DEC´12 2,340,004 42,228 27,459 15,056 12,537 14,099 70.0 DEC´11 VAR% 9,997 12,425 -13.0 2.9 DEC´11 VAR% 2,325,517 42,066 27,142 19,114 14,254 15,576 69.4 0.6 0.4 1.2 -21.2 -12.0 -9.5 0.9
  49. 49. Solid Cash Flow Generation Infrastructure Projects Ex - Infrastructure Projects (operating cash flow) 731 (dividends) 739 649 503 527 464 283 406 373 591 100 462 288 79 33 34 187 205 188 2006 2007 2008 Swissport (sold in 2011) 406 298 92 111 241 2009 209 188 165 2010 2011 130 164 Construction 387 491 2012 2006 2007 2008 2009 178 182 2010 2011 Services Strong cash flow generation from construction and services activities Cash flow upstream from infrastructure projects Resilient performance through the crisis 49 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 2012
  50. 50. What have we done in 2012? Operational Growth (Tariffs) New Contracts Heathrow +12.7% 407ETR ≅ +8% US 406 Virginia Balance Sheet 50 Sheffield maintenance 16.34% HAH Stansted airport Edinburgh airport X16.0 EV/EBITDA Assets rotation 407ETR extension X16.7 EV/EBITDA BAA Initial dividend 407ETR dividend E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 LT bond issuance
  51. 51. Toll roads € million 2012 ∆% • €220mn dividends from projects (2011, €159mn) L-f-L Revenues 381 -3% EBITDA 272 -5% EBITDA % • Traffic recovery in US, weak in Europe • New projects awards 71.2% ETR East Extension (Canada) CAD1,100 mn 2012 ∆% L-f-L 1 Traffic EBITDA -21% +35% +0.4% +5% -11% -9% ETR 4072 +0.6% +10% Indiana Toll Road2 +1.2% A66 (Spain) €192 mn +4% Autema Chicago Skyway Ausol • Pipeline Focus on the US New office in Australia & Colombia Selective monitoring of emerging markets 1 Financial asset 2 Equity method 51 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  52. 52. 407ETR (Equity method, FERROVIAL stake: 43%) CAD million ∆% 2012 L-f-L 82.9% Net debt +90bps 5,219 EBITDA % +10% +8% 300 600 190 2009 2010 2011 2012 • EBITDA growth (+10%) Traffic (+0.6%) Resilient performance Opex optimization (+3,8%) Tariff growth EBITDA (CAD million) 608 • Long term bond issuances 30 years / CAD400mn / 4.19% 353 40 years / CAD200mn / 3.98% No relevant maturities until 2015 2006 52 2007 2008 2009 2010 2011 2012 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 Dividend 608 EBITDA +9% 459 (CAD million) 734 Revenues • Sharp increase in dividend
  53. 53. Services € million ∆% 2012 UK Spain L-f-L 2,951 +1% 314 -2% EBITDA % 10.6% -50 bps Backlog 12,784 +2 % Revenues EBITDA Geographical breakdown Revenues +8% Revenues -5% -3% EBITDA -1% +12% BACKLOG -10% L-f-L • Strong cash flow generation €491mn Backlog (2011, €164mn) • Resilient performance in a difficult UK 51% Spain 49% Spain 44% economic context UK 56% • Record backlog at year end 53 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  54. 54. Construction € million ∆% 2012 Budimex L-f-L 4,326 0% 298 ex_PNI* Webber Spain &RoW +35% EBIT 6.9% Backlog -14% Backlog Geographical breakdown Domestic 2.640 +4% +28% -9% +8% +41% +63% Backlog -27% -21% -3% +190 bps 8,699 EBIT % Revenues EBIT Revenues • Cash flow generation (€100mn) despite Work breakdown Residential 3% Industrial & other 18% declining Spanish sales • International growth offsets Spanish performance International 6.060 79% • International backlog 70% of total S e i 1 r e Civil works 54 *PNI was excluded from Budimex’s consolidation perimeter in November 2012, after filling for creditor protection. PNI impact: EBIT -€35mn E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  55. 55. HAH (Equity method, FERROVIAL stake 33.65%) 100% GBP million 2012 ∆% • €143mn dividends from HAH L-f-L Revenues 2,646 EBITDA 1,355 +11% EBITDA % 51.2% +125 bps NET DEBT 12,931 HAH 100% 2012 dividend (GBP 240mn) +8% • Second consecutive year of record Heathrow traffic and passenger satisfaction • • Traffic 2012 (PAX Mn) Double digit EBITDA growth Capital structure strengthened ∆% Heathrow 70.0 10.5 5.5% UK airports 99.7 0.5% Extending maturities, markets & currencies 0.9% Scotland GBP3.0bn issued in 2012 • Successful divestments above expectations 100% HAH implied equity value GBP4,500mn Stansted 33.65% Ferrovial 55 20.00% Qatar 13.29% Brittania 11.88% GIC GBP1.5bn (x16.0 EV/EBITDA) Edinburgh Shareholders GBP807mn (x16.7 EV/EBITDA) 10.0% 11.18% CIC Alinda E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  56. 56. HEATHROW – Financial improvement Resilient performance* Financing transformed EBITDA (GBP million) Dec’ 2011 Average life of debt 9.8 years 10.1 years Debt due within 3 years £3.7 billion £1.8 billion 1,103 Dec’ 2012 Bond proportion of total debt 77% 94% 529 2006 2007 2008 2009 2010 2011 2012 * Heathrow airport, excluding Heathrow express  Over £3 billion in bond issuance in 2012  £1.7 billion undrawn revolving credit facilities Liquidity horizon 20 months *Including impact of Stansted disposal proceeds 56 30 months*  HAH can meet capital investment, debt maturities, interest and distributions till mid-2015 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  57. 57. HAH Financing Structure 2008 Refinancing 2012 HAH Capital structure FGP Top Co FGP Top Co Toogle Facility £702Mn Senior Loan Facility £600Mn ADIL NewCo BAA Ltd Des Sub-Holdco Sub-Holdco Security Parent Designated Airports 57 Subordinated Facility £1,566Mn Heathrow Airport Holding Non Designated Holdco Non Designated Group ADIL Heathrow Finance Subordinated Facility £728Mn Non-Designated bank Financing: £406m Non-Designated Facilities Bank facility: £1,000m Capex & WC facility: £255m Heathrow Airport 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 Non Designated Airports Heathrow funding Bank facilities: £712m Bond facilities: £10,240m
  58. 58. Diversified portfolio Ex – Infrastructure Projects Services Infrastructure Projects Construction Toll Roads Airports Non Capital Intensive Capital Intensive PROFIT GENERATION LONG DURATION CASH GENERATION LONG TERM VALUE Fully consolidated Method Proportional (1) €927Mn 29% €1,671Mn EBITDA FY´12 34% 33% Services Toll Roads 37% 64% Spain 16% UK Construction 12% US 8% RoW 34% Spain (1) Proportional: All EBITDA figures are aggregated in a proportional basis to the Ferrovial equity stake in each company or project. 58 19% Airports E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 42% UK 19% 29% 21% US 3% RoW
  59. 59. Cash generation through the group (2007-2012) P arent Dividends Asset rotation €1.4bn €3.4bn Equity contribution to new projects Cintra dividends over the period comparable to equity investment (current portfolio) Operating Cash flow €3.5bn Asset rotation €0.9bn €1.9bn €1.7bn I nfrastructure P rojects (1) • Dividend payment to parent • Asset rotation Ex – I nfrastructure P rojects • Limited investment requirements • Strong CF generation - upstream to parent (1) Includes projects from airports, toll roads, construction and services 59 59 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
  60. 60. Cash Flow generation 2010-2012 Activity Cash Flow Ex-Infra projects Excluding M&A operations 61% 24% 23% Dividends From infra projects 62% 21% RoW 17% Equity Invested In infra projects 60 77% 10% E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 RoW 13%
  61. 61. Shareholder remuneration Dividend 2012 (Euros/share) Interim 1.00 Complementary 0.25 TOTAL 1.25 1.25 0.40 0.45 2009 61 0.42 2010 2011 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 2012
  62. 62. 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: ir@ferrovial.es website: www.ferrovial.com 62 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30

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