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Ferrovial Executive Summary Jan Mar 2015

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Financial Information SummaryResults. Ferrovial Jan Mar 2015

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Ferrovial Executive Summary Jan Mar 2015

  1. 1. Heathrow** +2% 16.4mn pax East II ext.of the 407ETR Financing & commercial close CAD880mn investment 30Y maturity since opening (2017E). IR Department e: ir@ferrovial.com -  +34 915862730 1 ferrovialResults - Executive summary January – March 2015 Financing activity Consolidated performance Business performance DIVIDENDS RECEIVED ETR 407 €58mn Heathrow €26mn BACKLOG ETR 407* +15% CAD173mn Services +12% €77mn Heathrow* +11% £342mn Construction 15% €65mn EBITDA REVENUES +10.4% €2,147mn EBITDA +14.2% €210mn Ex-infrastructure net cash1 €1,583mn Services: growth in all areas & magnitudes, helped by FX (LfL revs +4.4%), with stable margins at 6.7%. Backlog reached €23,5bn (incl JVs) ETR407 & HAH confirm their resilience with EBITDA +15% & +11% respectively. Traffic at Heathrow +2.0%, at UK Regional airports +9.3%. In toll roads, growth at all main US (Chicago Skyway, SH130), European (Spain, Portugal & Ireland) & Canadian toll roads (407ETR +2.4%). NTE 1-2, opened Oct’14, In 1Q’15 reached 4m transactions, +3.1% vs 4Q´14. Construction saw revenues +11% mainly on the back of Budimex (double digit growth in sales, EBITDA & backlog). Bakclog at €8,600m (+6.3% vs Dec’14). Solid results from good operating performance & FX impact (€weakness). LfL revs+3% & EBITDA+6%. Strong traffic growth in all airports & in toll roads in Canada, US & Europe Record high construction + services backlog at over €32bn (including JVs). Strong financial position & flexibility: Ferrovial has reduced borrowing cost & extended its maturity profile. • LHR issued c.£850mn: i.e. €750mn 15Y, 1.5%. Cost. • ETR issued CAD150mn 30Y bonds at 3.30%. • Increased/extended €1.3bn liquidity line (5Y, 50bps). • Net cash (ex-infra projects) at €1,6bn. Higher HAH & 407ETR dividends: HAH paid £75mn (+11%), 407ETR paid CAD187.5mn (+7%). A combined €85m for Ferrovial. LIQUIDITY1 €4,468mn TRAFFIC ETR 407** +2.4% 530mn vkt’000 1 Excluding infrastructure projects. * Consolidated by equity method. Services +5% €23,549mn Construction +6% €8,600mn Other events Ocaña-la Roda Deconsolidatedfrom the group Indiana toll rad Sold to IFM Investors Bond issues LHR £850mn o/w €750mn (15Y & 1.5% coupon) 407ETR CAD150mn (30Y, 3.30% coupon) Shareholder remuneration After the success of 2014 scrip dividend programme “Ferrovial Dividendo Flexible”, it was again approved in March 2015 AGM. Ferrovial will make two payments during 2015 equivalent to 2014 complementary and 2015 interim dividends. The former, to be paid in May 2015, will amount to €0.304 per share. In addition, the AGM approved a new share buy back program with a maximum of €250mn or 18mn shares, to be executed from May 26th to November 18th 2015. 282 308 367 917 477 510 2009 2010 2011 2012 2013 2014 €million AIRPORTSCONSTRUCTIONTOLL ROADS SERVICES Liquidity line Expansion and extension €1,250mn Cutting cost to 50pbs from the 80pbs of previous line (€750mn) and maturity in 2020. Glasgow +13% 1,6mn pax
  2. 2. ferrovial Revenues +12.5% mainly as a reflection of the GBP appreciation (LfL +4.4%). EBITDA margins in line with 1Q’14. Backlog at record levels, +5.3% vs Dec’14 (€23,549mn incl JVs) Spain: Sales +6.7% from contracts won in 2H14 (waste collection Madrid). EBITDA margins improved from higher contribution from contracts which began in 1Q’14. Backlog including JV -1.6% at €6,625mn. UK: 15% revenue growth driven by GBP appreciation (LfL +2,4%). EBITDA margin (4.7%) in line with 1Q’14 though impacted by seasonality (bad weather in 1Q), new project start-up costs & higher costs related to the finalization of the investment phase in the Birmingham contract.Backlog including JV +8.2% at €16,554mn. International: This division includes mainly Chile (€15mn), Portugal (€6mn) & Poland (€4mn) showinga revenueincreaseof +43% (+35,6% LfL). Services Revenues +12.5% 1,162mn EBITDA +12.0% 77mn/6.7% Backlog +5.3% 23,549mn Toll roads Airports Double-digit growth in revenues (+24%), EBITDA (+29%) & EBIT (+30%), reported & LfL. Solid traffic growth in key assets on better weather vs 1Q’14 (US & Canada), Easter holidays in March (Spain & Portugal), lower oil prices & economic recovery since 2H’14. Growth in traffic despite strong increases in tariffs at Chicago Skyway (+4,6% with +13,2% in tariffs) & ETR407 (+2,4% with c.+10% in tariffs). NTE 1-2: 6 months in operation.Traffic +3%, revenues +47% vs 4Q’14. ITR: sold to IFM Investors for $5,725mn ($50m inflow for Ferrovial in 2015E). Ocaña-La Roda: deconsolidated from Ferrovial’s accounts with effect from Feb’14 leading to a capital gain of €63.7mn (reversal of impairments). Developingassets: LBJ: 98% of constructionis now complete, opening expected Summer 2015. NTE 35W:Work is on schedule,opening expected mid-2018. 407 East I: 58% of constructionis complete. A66 Benavente-Zamora:95% of constructionis complete. Revenues +23.9% 113mn EBITDA +28.6% 71mn /62.6% The contribution made by HAH to Ferrovial’s Equity-accounted results in 1Q’15 is €7mn vs €2mn in 2014. Heathrow: Strongperformanceon traffic (+2.0%) on the back of Easter holidays falling in March,an increasein the number of seatsin larger aircrafts & good performanceof new destinations& routesstartedin 2014. Revenues +8% from +9.3% aeronautical (tariffs up by +11.3% Jul’14) & +6,4% retail revenues.EBITDA +7,2% with margins maintainedat 55%. • Record passengersatisfaction(82% rate their experienceas very good or excellent). • “Best Airport in WesternEurope” (2015) • “Best Airport for Shopping” (2015 - 6th consecutiveyear) • T5 “Best Airport Terminal in the World” (2015) by Skytrax World Airports Awards UK Regional airports: traffic +9.3%, 2.8mn passengers. Revenues +7% and EBITDA +12,9% to £11mn. Revenues (HAH) +8.3% £623mn EBITDA (HAH) +11.0% £342mn/54.9% Ferrovial controls 25% of HAH (Heathrow) & 50% of AGS Consolidated by equity method Debt £13.1bn RAB £14.8bn * Consolidated by equity method **Ausol I Revenues +11.1% (+3.8% LfL), mainly due to strong growth at Budimex, which also supported strong growth at LfL EBITDA (+7.7%). International turnover represents 72% of revenues. Backlog +6.3% vs Dec’14 although stable LfL, with 80% from Civil Works.. F. Agroman: Revenues Lfl +3,5% supported mainly by continuous growth in traditional markets. Budimex: Revenues & EBITDA LfL growths of +20.9% & +76.5%, respectively, mainly on materials & subcontractors cost reduction, and disposal of non strategic assets.Strong growth in Backlog (+10%, +4.7% LfL) to €1,568mn vs Dec’14. Webber: revenues +7.6% or -13% LfL, mainly due to NTE managed lane finalization & adverse weather conditions in Dallas. Profitability still at high levels although lower than 2014. Lack of new large awards & high execution levels result in -10,5% fall in Backlog (local FX). Revenues +11.1% 883mn EBITDA +15.1% 65mn/7.4% Backlog +6.3% 8,600mn Construction +15.1% 737mn +43.0% 25mn n.s. 2mn/6.4% +6.7% 400mn +7.6% 41mn/10.4% Revenues EBITDA Backlog +13.7% 34mn/4.7% +10.7% 371mn (1.6)% 6,625mn +8.2% 16,554mn Spain UK International IR Department e: ir@ferrovial.com -  +34 915862730 2 Revenues EBITDA Backlog +7.6% 149mn (5.6)% 8mn/5.3% +0.9% 889mn +8.0% 524mn +8.5% 45mn/8.5% +6.2% 6,143mn +22.5% 211mn +79.4% 12mn/5.9% +10.0% 1,568mn F. Agroman (RoW) Budimex (Poland) Webber (USA) Glasgow Heathrow +2.0% 16.4mn +8.0% 622mn Traffic Revenues EBITDA +7.2% 342mn/55.0% +13.2% 1.6mn +7.8% 20mn +32.2% 5mn/26.0% Aberdeen (0.7)% 0.8mn +4.8% 15mn +6.4% 5mn/32.8% Southampton +16.5% 0.4mn +10.0% 6mn +87.4% 1mn/21.8% Chicago Skyway (55%) 4.6% 34,006 1.3mn Ausol** (80%) +11.5% 10,156 +13.9% 8mn 0.5mn M4 (66%) +5.2% 25,444 +5.9% 5mn 0.1mn 407ETR* (43%) +2.4% 530mn VKT +25.1% 153mn 4.5mn Traffic Revenues EBITDA Net debt € +46.6% 18mn + 16.2% 6mn/75.1% +5.2% 4mn/69.2% +24.3% 123mn/80.6% +46.7% 15mn/83.5% Algarve (85%) +11.7% 6,598 +2.5% 10mn 0.1mn+1.2% 9mn/88.7% 1Q’15 €mn €mn £ mn
  3. 3. • Net debt (cash) structure total ferrovial Fixed Assets 20.3bn Balance sheet Current Assets 6.6bn 26.9bn Equity 6.3bn Non current Liabilities & others 14.2bn Current Liabilities 5.2bn Gross cash (3.2)bn • Ex.Infrastructure Projects Net cash (1.6)bn Gross debt 1.6bn Ex.Infrastructure Projects (1.6)bn Infrastructure Projects 8.0bn Debt maturity calendarcorporate 55mn 2015 33mn 2016 10mn 2017 Liquidity position Total cash 3.2bn Total liquidity 4.5bn Undrawn lines 1.3bn 1.5bn 2018+ Strong balance sheet and liquidity position to finance future growth opportunities. At the end of 1Q’15, Ferrovial’s net cash position, excluding infrastructure projects, amounted to EUR1,583mn. The dividends received from projects reached €90mn (€84mn in 1Q’14). Corporate rating IR Department e: ir@ferrovial.com -  +34 915862730 82% Bonds BBB / stableFitch (last upgrade July 2014) BBB / stableStandard & Poor’s (last upgrade May 2013) Total Net debt 6.4bn 1Q’15 €mn Deferred income 1.1bn
  4. 4. ferrovialHuman resources Spain 54% America 4% UK 27% Poland 6% RoW 9% Environment Lower energy consumption -38.6% Reduction of greenhouse gas emissions 2009 – 2014: Management of new business opportunities Priorities Say on pay IR Department e: ir@ferrovial.com -  +34 915862730 4 FER turnoverindex:3,6%. 8 /10 employees would recommend FER as a good company to work for. • For the last 14 consecutive years, Ferrovial has been included in the DJSI (Dow Jones SustainabilityIndex) • Ferrovial has been included in Climate Performance Leadership Index (CPLI) & Climate Disclosure Leadership Index (CDLI) from the Carbon Disclosure Project (CDP), with the maximum mark (100A.) • Ferrovial leads the Supplier Climate Performance Leadership Index (SCPLI), by CDP, with a maximum A rating. CDP is investors’ main reference for evaluating how companies deal with the risks and opportunitiesrelated to climate change. Innovation R&D Investment (€m) 2014 2013 2012 2011 2010 42.6 32.9 32.6 51.32 45 636 Participants 677 Ideas 45% teams MADRID SMART LAB The City Competition Centre links as equals the local council, the entrepreneur and the services company. As a result 59 proposals submitted: 31 Mobility proposals and 28 Quality of life 1 Risk management & environmental responsibility 2 FY2014 €mn Increase of c.30% of R&D Investment in 2014, including the development of over 100 projects. This demonstrates Ferrovial’s commitment towards innovation as sourceof growth and value creation NATIONAL INNOVATION AWARD Ferrovial was awarded the National Innovation and Design award, given by the Economy and Competition ministry (Ministerio de Economía y Competitividad), who valued the presence of innovation in Ferrovial’s fields of activity, its open innovation model, its commitment to promoting talent and leadership in large international projects PROJECTS WITH MIT The “System for Waste Separation and Evaluation” project started with the objective of improving the operations and design of the urban waste separation and treatment plants. FERROVIAL INNOVATION AWARDS Inviting its employees to offer solutions to four challenges ,one for each business unit. The results of this secondedition are: 80.000 90.000 100.000 110.000 120.000 130.000 300.000 320.000 340.000 360.000 380.000 400.000 420.000 2009 2010 2011 2012 2013 2014 Fossil fuels Electricity 70% MALE 30% FEMALE 69,088 Workforce 43.3 43.8AVERAGE AGE 8.9 9.5YEARS OF SENIORITY 77% 81%PERMANENT CONTRACT 85% 15%MANAGEMENT 2.9% 0.6%ROTATION INDEX 67% 33%NEW RECRUITMENTS Strong commitment to improve health & safety polices Total TrainingHours 1,281,414 Hoursper employee 19 Investmentper employee 258 € % of the Co revenue 0.20% Talent management: Through consolidated evaluation processes, such as 360º feedback, competencies assessment and talent management reviews. Succession Planning: 700 people assessment to identify 264 successors for 133 key management positions. Compensation:Total reward policy equitable and competitive: Fixed and variable remuneration plus long-term incentives. Flexible remuneration including products & services, subject to employee personal & economic needs Opportunities based on merit: Distinguished Equal Opportunities Company award in 2010, which remainsin force until 2016. Present in 22countries Acknowledgements 17% of electricity consumed by Ferrovial came from renewable sources (100% in the case of Amey) 2014: balanced contribution between fixed, variable and long term incentives: Metrics of The Long Term Incentive Grant 2014 are a mix of: EBITDA / Net Productive Asset , Cash Flow , TSR * in comparisonwith 16 internationallisted companies: *ACS, OHL, FCC, Abertis, Serco, Carrillion, Vinci, Skanska, Strabag, Eiffage, Balfour Beatty, Bilfinger Berger, SNC Lavalin, Transurban, ADP, Fraport. 21% Fixed 39% Variable 40% Long Term incentives 2011 Grant Ferrovial compares with IBEX35 and is in the average compensation of that group. Euros 0 200,000 400,000 Percentile75 0-25%il 25-50%il 50-75%il 75-90%il Percentile25 Percentile90 Mean Media ferrovial Board remuneration non executive President & CEO remuneration as executives Source: Towers Watson tCO2eqtCO2eq

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