East II ext.of the 407ETR
Financing & commercial close
30Y maturity since opening (2017E).
IR Department e: firstname.lastname@example.org - +34 915862730 1
ferrovialResults - Executive summary
January – March 2015
Ex-infrastructure net cash1
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.
1 Excluding infrastructure projects.
* Consolidated by equity method.
Deconsolidatedfrom the group
Indiana toll rad
Sold to IFM Investors
o/w €750mn (15Y & 1.5% coupon)
(30Y, 3.30% coupon)
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.
2009 2010 2011 2012 2013 2014
AIRPORTSCONSTRUCTIONTOLL ROADS SERVICES
Expansion and extension
Cutting cost to 50pbs from the
80pbs of previous line (€750mn)
and maturity in 2020.
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).
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).
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.
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.
Ferrovial controls 25% of HAH (Heathrow) & 50% of AGS
Consolidated by equity method
* 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
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 EBITDA Backlog
IR Department e: email@example.com - +34 915862730 2
Revenues EBITDA Backlog
F. Agroman (RoW)
Traffic Revenues EBITDA
Chicago Skyway (55%) 4.6%
Ausol** (80%) +11.5%
M4 (66%) +5.2%
407ETR* (43%) +2.4%
Traffic Revenues EBITDA Net debt €
Algarve (85%) +11.7%
• Net debt (cash) structure total
Liabilities & others
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
Total liquidity 4.5bn
Strong balance sheet and liquidity position to finance future
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
IR Department e: firstname.lastname@example.org - +34 915862730
BBB / stableFitch (last upgrade July 2014)
BBB / stableStandard & Poor’s (last upgrade May 2013)
Net debt 6.4bn
Lower energy consumption
-38.6% Reduction of greenhouse gas emissions
2009 – 2014:
Say on pay
IR Department e: email@example.com - +34 915862730 4
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
• 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.
R&D Investment (€m)
2014 2013 2012 2011 2010
42.6 32.9 32.6 51.32 45
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
Risk management &
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 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
FERROVIAL INNOVATION AWARDS
Inviting its employees to offer solutions to four challenges ,one for each business unit.
The results of this secondedition are:
2009 2010 2011 2012 2013 2014
Fossil fuels Electricity
43.3 43.8AVERAGE AGE
8.9 9.5YEARS OF SENIORITY
77% 81%PERMANENT CONTRACT
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
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
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.
Long Term incentives
Ferrovial compares with IBEX35 and is in the average
compensation of that group.
0 200,000 400,000
Board remuneration non executive
President & CEO remuneration as executives
Source: Towers Watson