January-March 2013 results

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Ferrovial Q1 2013 results presentation.

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January-March 2013 results

  1. 1. January - March 2013Results1A I R P O R T SM O T O R W A Y S C O N S T R U C T I O NS E R V I C E SINDEXGENERAL OVERVIEW....................................1Business performance...............................1MOTORWAYS...............................................2Traffic performance ..................................2Other important matters ...........................3Contract awards .......................................3Tenders...................................................3407-ETR ..................................................4SERVICES ....................................................5Businesses in Spain ..................................5United Kingdom .......................................5Other international ...................................5Backlog ...................................................5Corporate activity .....................................6CONSTRUCTION...........................................7Budimex ..................................................7Webber ...................................................7Ferrovial Agroman ....................................7Backlog ...................................................7AIRPORTS ...................................................8HAH traffic...............................................8Tariffs .....................................................8Income statement ....................................9Regulatory matters ...................................9Net debt..................................................9Dividends ................................................9Disposals .................................................9CONSOLIDATED INCOME STATEMENT .........10BALANCE SHEET AND OTHER MAGNITUDES .12Consolidated net debt .............................13Corporate credit rating............................13Corporate bond issuance.........................13APPENDIX I: SIGNIFICANT EVENTS .............14APPENDIX II: PRINCIPAL CONTRACT AWARDS................................................................15APPENDIX III: EXCHANGE-RATE MOVEMENTS................................................................16Comparable information: Income statement analysis in like-for-liketerms responds to the need to have an accurate picture of theperformance of the underlying business. The principal adjustmentsmade to achieve this comparable analysis is the elimination of fair-value adjustments (hedging, impairments and asset revaluations),Exchange-rate movements and changes to the consolidationperimeter.*EBITFor the purposes of analysis, all the comments referring to EBITare before impairments and disposals of fixed assetsGENERAL OVERVIEWThe highlights of the first quarter of 2013 were Ferrovial’s first issuance of corporate bonds, the award ofthe concession for a new section of the North Tarrant Express toll motorway in Texas to a consortium ledby Cintra (with a total estimated investment of USD1,380mn), the acquisition of Enterprise (one of thetop British companies in the field of services to utilities and the public sector), and the initiation ofservices for the mining industry with the acquisition of Steel Ingeniería in Chile.Ferrovial successfully placed its first corporate bond issue (EUR500mn of senior five-year bonds at 240bpover midswap, with a coupon of 3.375%). Demand exceeded EUR5,590mn or 11x oversubscribed. Theproceeds have been applied to amortizing corporate debt.The merger of Enterprise into Amey, the subsidiary of Ferrovial Servicios in the UK, will create a companythat has one of the most diversified product offerings in the sector, 21,000 employees and will doubleAmey’s turnover in the UK to more than EUR2,600mn. The deal will facilitate entry into the services toutilities segment.During the first quarter, HAH paid a quarterly dividend to its shareholders amounting to GBP64mn (vs.GBP60mn in 2012). The 407ETR also paid a quarterly dividend, in this case amounting to CAD100mn (vs.CAD87.5mn in 2012).The net cash position excluding infrastructure projects stood at EUR1,047mn at the end of the firstquarter. This figure does not reflect the payment made for the acquisition of the services companyEnterprise in April 2013.BUSINESS PERFORMANCEThe combination of tariff increases and cost-controls resulted in notable growth at the EBITDA level atboth Heathrow Airport (+11%) and the 407ETR toll motorway (+7%), both in local currency terms. Bothassets are consolidated by the equity method.As regards traffic, Heathrow posted a new record in the first quarter (16 million passengers vs. 15.7million in the same period last year), or growth of 1.8%. Traffic on the 407ETR (-1.5%) was affected bythe fact that in 2013 the quarter had two fewer working days than in the same period in 2012.The Services division was stable in terms of revenues (-1.9%), affected by the decline in activity in Spain,mainly offset by the new contracts in the UK.In the Construction business, the trend observed in previous quarters continues, with declining domesticactivity partially offset by international growth.At the Toll Motorways division, the weak economic environment and fuel prices close to all-time highsworked against any recovery in traffic.Consolidated revenues reached EUR1,643mn and EBITDA EUR181mn. Net income reached 100 millioneuros.Mar-13 Mar-12 Chg. (%) LfL (%) Mar-13 Dec-12 Chg. (%)Revenues 1,642.8 1,707.2 -3.8 -1.8 Construction Backlog 8,538 8,699 -1.9EBITDA 180.8 192.0 -5.9 -6.2 Services Backlog 12,542 12,784 -1.9EBIT* 129.7 141.4 -8.3 -9.5Net result 100.0 7.6 n.s. 26.9 Traffic Mar-13 Mar-12 Chg. (%)Capex -79.5 -66.4 19.7 ETR 407 (VKT´ 000) 501,920 509,432 -1.5Chicago Skyway (ADT) 34,298 35,320 -2.9Indiana Toll Road (ADT) 22,629 22,066 2.6Autema (ADT) 14,603 16,723 -12.7Mar-13 Dec-12 Chg. (mn) Ausol I (ADT) 9,207 11,456 -19.6Net financial Debt -5,755.8 -5,105.5 -650 Ausol II (ADT) 11,916 13,035 -8.6Net Debt Ex-InfrastructureProjects1,047.1 1,489.2 -442 Heathrow (million pax.) 16.0 15.7 1.8
  2. 2. Results January-March 20132MOTORWAYSMar-13 Mar-12 Chg (%)Like forLike (%)Revenues 97.0 88.0 10.2 10.1EBITDA 59.2 80.3 -26.3 -26.3EBITDA Margin 61.0% 91.3%EBIT 43.8 66.3 -33.9 -33.9EBIT Margin 45.2% 75.3%Revenues increased by 10%, partly due to the entry into operation of theSH-130 in November 2012 and the significant tariff hike on the ChicagoSkyway (+14% for light vehicles and +25% for heavy vehicles), withtraffic performance more resilient than expected. Growth at sales levelwas driven as well by the reversal of a provision carried out in 2012 inNorte Litoral, due to a potential penalty on unavailability.The inclusion in 1Q12 of the reversal of EUR20mn of VAT-relatedprovisions at Autema, was reflected in the 26% drop at the EBITDA level.TRAFFIC PERFORMANCEIn Spain, traffic on all the corridors continued to decline at similar rates tothose observed in the last quarter of 2012. This decline is explained bythe deterioration in the economy and the rise in fuel prices. On top of thedeclining traffic through the corridors, the toll motorways continued tolose market share, for two fundamental reasons: i) the accumulated dropin traffic since the beginning of the economic crisis has resulted in aconsiderable improvement in traffic conditions on the non-toll alternativeroutes; and ii) the reduced willingness to pay tolls in difficult economictimes, has been exacerbated in recent quarters by the generaluncertainty regarding the Spanish economy, the loss of purchasing powerdue to the increased tax burden imposed by the government and theincrease in unemployment. On top of all this, VAT increased from 18% to21% as of 1 September 2012, which increased user tariffs by 2.5%.There are also other specific factors weighing on Spanish toll motorways:At Ausol, the (7.5%) increase in the tariff, effective 28 July 2012, as aresult of the cancellation of a compensation account approved in 1999 forlower traffic at that time, and the opening to traffic of the San Pedro deAlcántara tunnel on 26 June, are having a negative impact on traffic onthe tranche I of the motorway.At Autema, 1 January 2013 was the first anniversary of the coming intoeffect of the new tariff decree, which removed the discount for local userson the Sant Cugat-Terrassa section. Now that the effect of this change inthe tariff regime has consolidated, the decline in traffic has moderated.This motorway has a compensation mechanism that guarantees itsoperating results, according to the 1999 agreement.In Portugal, the modification to the Norte Litoral’s concession contracteliminated the traffic risk, and the contract for the Algarve motorwayconcession is in the process of being modified along similar lines. In theAzores, 15 December 2012 was the first anniversary of the full opening ofthe concession. The drop in traffic is due to the combination of adverseweather conditions and a calendar effect with two fewer working days,which had a negative effect on works in the region and thus on heavyvehicle traffic.Ireland: On the M4 there were clear signs of recovery in the first quarter.Even though traffic on the motorway continues to decline, market sharehas increased. On the M3, as on the M4, first quarter traffic growth waspractically flat for both light and heavy vehicles, indicative of a change oftrend.Traffic (IMD) Revenues EBITDA EBITDA MarginFull consolidation Mar-13 Mar-12 Chg. Mar-13 Mar-12 Chg. Mar-13 Mar-12 Chg. Mar-13 Mar-12Chg.(pbs)Chicago Skyway 34,298 35,320 -2.9% 13.1 11.2 17.0% 11.2 9.5 18.0% 84.8% 84.2% 67SH-130 5,307 3.0 n.s. 1.0 0.1 n.s. 32.3%Ausol I 9,207 11,456 -19.6%Ausol II 11,916 13,035 -8.6%Ausol 7.7 9.9 -22.1% 5.6 7.5 -25.6% 72.0% 75.3% -335Autema* 14,603 16,723 -12.7% 20.9 21.3 -1.7% 19.2 38.9 -50.7% 91.7% 182.9% -9,113Radial 4 4,044 4,672 -13.4% 2.9 3.2 -8.0% 1.2 0.8 63.7% 42.7% 24.0% 1,869Ocaña-La Roda 2,278 2,282 -0.1% 2.3 2.2 4.9% 0.6 0.4 54.4% 26.6% 18.1% 851M4 23,209 23,507 -1.3% 5.0 4.9 1.5% 3.4 3.4 0.4% 68.6% 69.4% -78M3* 24,749 24,537 0.9% 5.2 4.7 10.5% 3.9 3.6 8.8% 76.1% 77.3% -121Euroscut Algarve 8.7 10.0 -13.2% 7.7 9.0 -14.6% 88.9% 90.3% -144Euroscut Norte Litoral* 19.5 10.6 84.2% 18.1 9.5 89.2% 92.7% 90.3% 241Azores 7,431 8,186 -9.2% 4.8 5.2 -7.7% -1.6 4.2 n.s. -32.3% 79.8% n.s.Holding & Others 4.0 4.9 n.s. -11.0 -6.5 n.s.Total 97.0 88.0 10.2% 59.2 80.3 -26.3% 61.0% 91.3% -3,021Equity consolidated Mar-13 Mar-12 Chg. Mar-13 Mar-12 Chg. Mar-13 Mar-12 Chg. Mar-13 Mar-12Chg.(pbs)407 ETR (VKT) 501,920 509,432 -1.5% 124.8 118.5 5.4% 101.5 95.9 5.8% 81.3% 80.9% 34Indiana Toll Road 22,629 22,066 2.6% 34.1 32.0 6.6% 24.2 24.7 -1.7% 71.1% 77.1% -601Ionian Roads 24,444 26,502 -7.8% 12.2 12.5 -2.4% -0.3 4.7 -106.2% -2.4% 37.9% n.s.* Financial assets
  3. 3. Results January-March 20133Traffic trends on the North American motorways continued to be positive,thanks to the modest improvement in the economy and the slight declinein the price of fuel. The strength of heavy vehicle traffic in particular,reinforces the impression of economic recovery.Chicago Skyway: traffic performance was more robust than expectedafter the significant hike in tariffs (+17.5%), especially as regards heavyvehicles.Indiana Toll Road: traffic recovery continued on this motorway. Theincreases in heavy vehicle traffic on all sections of the motorway and inlight vehicle traffic on the sections furthest away from the Skyway, morethan offset the negative impact of the traffic increases on this motorway.SH-130: traffic on this motorway, which was opened to traffic in October2012 and for which no comparable data is thus available, is at its higheston the days before a public holiday. The concession reached anagreement with TxDOT on 1 April, under the terms of which heavyvehicles will pay the same toll as light vehicles for one year, to encourageheavy vehicle use. TxDOT will compensate the concession for revenueslost resulted from the reduction in tolls for heavies.OTHER IMPORTANT MATTERSTARIFF INCREASES ON THE CHICAGO SKYWAYOn 1 January 2013, and in accordance with the increases set in thecontract, new tariffs came into effect. The weighted average increase was17.5%, with charges for light vehicles increasing by 14% and 25% forheavy vehicles.RADIAL 4On 14 September 2012, the Board of the Radial 4 agreed to requestprotection from its creditors through the courts. On 4 October, thisrequest for voluntary creditor protection was granted.The Radial 4 project has been directly affected by external factors(substantial reduction in expected traffic levels, higher expropriationcharges, economic crisis, etc.), which under the current conditionsprevent the motorway from meeting various commitments toexpropriated landowners and financial institutions. An important factor inthis decision, was that the possible measures of support to the concessionin legal terms were not correctly implemented by the contracting body.The above-mentioned decision – an anyway compulsory step in legalterms - was taken in view of all these elements, in the confidence that asolution could be reached within the next few months.Ferrovial’s investment relating to this project is fully provisioned, suchthat the resolution of the creditor protection situation should haveabsolutely no negative impact whatsoever on the group’s accounts.The net debt associated with this asset amounts to EUR587mn.As a result of filing for creditor protection, the stand-still agreements withthe lending banks were terminated.OCAÑA - LA RODAThe Ocaña-La Roda toll motorway filed for creditor protection on 19October 2012. On 4 December the courts accepted the request.Ferrovial’s investment in this project is provisioned in full, and it does notexpect there to be any negative impact whatsoever on its accounts fromthe resolution of the creditor protection situation.The net debt associated with this asset amounts to EUR532mn.The creditor protection filing triggered the early expiration of thefinancing contract, which matured on 31 December 2012.DIFFERENTIATION BETWEEN FINANCIAL ANDINTANGIBLE ASSETSIn the application of IFRIC 12, concession contracts can be classified aseither intangible or financial assets. Contracts treated as financial assetsare those than include some revenue guarantee mechanism, and wherethere is thus no traffic risk. In the case of Cintra, the concessions treatedas financial assets are the following: Autema, Norte Litoral and the M-3.CONTRACT AWARDSNTE extension: On 4 March 2013 Cintra signed the contract for thedesign, construction, financing and operation of the new section (NTE 3A-3B), which lengthens the NTE toll motorway. The total estimatedinvestment is USD1,380mn for a 43-year concession dating from theopening to traffic, expected to be in mid-2018.The project includes Section 3A (10.5km), the junction between the I-35W and the IH-820; and Section 3B (5.8km).The project comprises remodelling the existing lanes, which will be toll-free, and the construction of two additional ‘managed lanes’ that will besubject to electronic tolls, as well as the operation and maintenance ofthe whole section.Cintra will be responsible for the construction of Section 3A and thejunction, which will be carried out by Ferrovial Agroman and Webber, aswell as the operation and maintenance of the two segments. The TexasDepartment of Transport (TxDOT) will be responsible for the constructionof Section 3B.The consortium comprises Cintra, Meridiam Infrastructure y Dallas Policeand Fire Pension System.The financing is expected to be closed in 3Q13.TENDERSIn spite of the uncertainty in the markets, there has been a slightrecovery in the development activities of public authorities in some ofFerrovial’s international target markets.In North America, Ferrovial is evaluating various different projects invarious States, and in Europe, the company is working on variousprojects.The company is also studying projects in other markets such as Australiaand Latin America.
  4. 4. Results January-March 20134407-ETRCAD Mar-13 Mar-12 Chg (%)Revenues 166.7 156.5 6.5EBITDA 135.5 126.6 7.0EBITDA Margin 81.3% 80.9%EBIT 121.5 112.7 7.7EBIT Margin 72.9% 72.0%Financial results -50.2 -70.0 28.3EBT 71.2 42.7 66.7Corporate income tax -18.9 -11.0 -71.6Net Income 52.4 31.7 65.1Net Income attributableto Ferrovial22.6 13.7 65.1Contribution toFerrovial equityaccounted result (€)13.7 7.1 91.9N.B: since Ferrovial’s disposal of 10% in 2010, the motorway has been consolidated by the equitymethod, as a reflection of the percentage controlled by Ferrovial (43%).407ETR posted significant revenue and EBITDA growth of 6.5% and7.0% respectively in local currency terms. This positive performancereflected the combination of the tariff increases that came into effect on 1February and robust traffic. Average revenues per journey had anincrease above 8% vs. 2012.The financial result was a substantial improvement over the same periodlast year due to the fall in CPI, which had a positive impact on theinflation-linked bonds.407ETR contributed EUR13.7mn to Ferrovial’s equity-accounted results,after the annual amortization of the goodwill generated after the sale of10% of the company in 2010, which is amortized over the life of the assetas a function of the anticipated traffic levels.DIVIDENDSOn 14 February, the Board of 407 International approved the payment ofan ordinary dividend of CAD0.129/share, totaling CAD100mn.After the close of the quarter, and coinciding with the publication of itsresults, the motorway announced and distributed a second payment ofCAD130mn.CAD 2013 2012 Chg.%Q1 100.0 87.5 +14,2Q2 130.0 87.5 +48,4Q3 87.5Q4 189.9Q4 147.3Total Q4 337.1Total 599.9TRAFFICThe slight decline in traffic measured in terms of kilometers travelled(VKT) (-1.5%), was due to the calendar effect of two fewer working daysin 2013 (with Easter falling in March in 2013 and in April in 2012) and oneday fewer due to 2012 being a leap year. In normalized terms, trafficgrowth in the first quarter was flat. The average distance travelledincreased by 0.6% per trip and the average numbers of journeys per dayalso increased. The particular strength of heavy vehicle traffic reflects thecorrelation with economic recovery in the province of Ontario.NET DEBT407ETR closed the quarter with a net debt position of CAD 5,243.8mn.The company has no significant debt maturities until 2015 (CAD500mn).CREDIT RATINGSS&P: "A" (Senior Debt), "A-" (Junior Debt) and "BBB" (SubordinatedDebt).DBRS: "A" (Senior Debt), "A low" (Junior Debt) and "BBB" (SubordinatedDebt).407ETR TARIFFSThe table below compares the 2012 and 2013 tariffs (1 Februaryincrease) for light vehicles:CAD 2013 2012Regular ZonePeak PeriodMonday-Friday:6am-7am, 9am-10am, 3pm-4pm, 6pm-7pmPeak HoursMonday-Friday:7am-9am, 4pm-6pm26.20¢ /km27.20¢ /km24.20¢ /km25.20¢ /kmLight ZonePeak PeriodMonday-Friday:6am-7am, 9am-10am, 3pm-4pm, 6pm-7pmPeak HoursMonday-Friday: 7am-9am, 4pm-6pm24.90¢ /km25.85¢ /km22.60¢ /km23.55¢ /kmMidday RateWeekdays 10am-3pm22.70¢/km 21.00¢/kmMidday RateWeekends & public holidays 11am-7pm21.00¢/km 19.35¢/kmOff Peak RateWeekdays 7pm-6am,Weekends & public holidays 7pm-11am19.35¢/km 19.35¢/kmTransponder: Monthly rental $3.25 $3.00Transponder: Annual rental $21.50 $21.50Video toll per journey $3.80 $3.80Cargo per journey(This is not a charge per km.)$0.70 $0.60
  5. 5. Results January-March 20135SERVICESMar-13 Mar-12 Chg.(%) LfL (%)Revenues 710.3 732.9 -3.1 -1.9EBITDA 70.8 69.4 2.0 2.8EBITDA Margin 10.0% 9.5%EBIT 42.4 42.3 0.0 1.0EBIT Margin 6.0% 5.8%Backlog* 12,542.2 12,783.9 -1.9 0.2*Backlogs compared with December 2012The economic difficulties and financial tensions in this division’s principalmarkets continued throughout the first quarter of 2013.In Spain, where economic activity continued to contract, revenues were2.7% lower than in the first quarter of 2012. In the UK, revenues fell3.4%, although in this case this was mostly due to increased activity insome contracts in the first quarter of 2012 as a reflection of works relatedto the Olympic Games.One positive aspect was the start of the division’s activities in Poland in1Q13 thanks to winning various highway and buildings maintenancecontracts worth EUR20mn, and another was the incorporation of Steel inChile: this company specialises in services to companies in the miningsector.Altogether, in pro-forma terms, the division’s revenues were 1.9% lowerthan in 2012, although EBIT growth was flat.BUSINESSES IN SPAINMar-13 Mar-12 Chg. (%)Revenues 344.7 354.1 -2.7EBITDA 48.6 45.9 5.9EBITDA Margin 14.1% 13.0%EBIT 26.1 24.1 8.5EBIT Margin 7.6% 6.8%Backlog* 5,197.8 5,219.4 -0.4As in previous quarters, revenues continued to decline YoY, reflecting thenegative economic growth in Spain (six consecutive quarters of GDPcontraction). In spite of this, EBITDA and EBIT were higher than in thesame period last year as a reflection of control over costs, which in recentyears have been adapted to the decline in activity, and activemanagement of portfolio quality.The difficulties related to the economic environment are principallyreflected in reductions in services due to clients’ Budget restrictions, andin the fall in tonnes of waste processed at tips and treatment plants (-7%vs. 2012) due to the effects of recession. This combined with variouscontracts being abandoned due to low returns or investment required inworking capital; in 1Q13, a number of contracts were cancelled,principally for maintenance and cleaning of public gardens in severalcities, with a combined impact on revenues of approximately 1% vs.1Q12.UNITED KINGDOMMar-13 Mar-12 Chg.(%) LfL (%)Revenues 352.8 373.7 -5.6 -3.4EBITDA 21.6 23.2 -6.6 -4.4EBITDA Margin 6.1% 6.2%EBIT 16.9 18.4 -8.2 -6.0EBIT Margin 4.8% 4.9%Backlog* 7,138.3 7,467.6 -4.4 -0.8The negative variations of the various magnitudes are principally due tocarrying out non-recurrent works in the first quarter of 2012 related tothe Olympic Games, which represented approximately 6% of revenues.The higher turnover on contracts in the Consultancy segment helped tooffset this effect.Margins remained flat. The main offsetting factor this year was theincreased contribution from Consultancy contracts and structural cost-cutting after integrating all the previously differentiated activities of localauthority and central government highway maintenance contracts.OTHER INTERNATIONALMar-13 Mar-12 Chg.(%) LfL (%)Revenues 12.8 5.1 151.3 151.3Backlog* 206.1 96.9 112.7This new business unit includes infrastructure maintenance andenvironmental services in countries other than Spain and the UK. Thebreakdown of revenues by country is as follows: Portugal (EUR5.1mn),Poland (EUR1.3mn) and Chile (EUR6.3mn).BACKLOGThe backlog reached EUR12,542mn (-1.9% vs. December 2012, +0.2%ex-currency effect).The principal contract awards in the quarter include a 15-yearmaintenance contract for Telefónica’s data centre, one-year maintenancecontracts for Heathrow and Stansted Airports and the Heathrow Express,and a five-year contract for highway consultancy services for the countyof Kent.In other international markets, the backlog includes mining services inChile (EUR46mn) and the first contract awards in Poland for highway andbuildings maintenance, together worth EUR20mn.
  6. 6. Results January-March 20136CORPORATE ACTIVITYSALE OF AMEY’S PFIsIn March, Amey closed the sale of 40% of the companies that executelong-term PFI projects for GBP37mn to the Dutch investment fund DIF.Prior to this sale, Amey owned 50%, which it consolidated by the equitymethod. After the sale, Amey maintains a 10% interest in the companies.The capital gain on the sale amounted to EUR20.1mn.ACQUISITION OF STEELOn 4 March, Ferrovial Servicios closed its acquisition of 70% of SteelIngeniería, a company that specializes in the mining sector in Chile, forEUR21mn, which will give it entry into this new market.With this acquisition, Ferrovial Servicios starts operations in Latin Americaand continues to roll out its international expansion after its recentcontract awards in Poland and Qatar, as well as its recent acquisition ofEnterprise in the UK.ACQUISITIÓN OF ENTERPRISEOn 8 April, Ferrovial closed the acquisition of the British company Enterprise, after receiving the green light from the European competitionauthorities.Enterprise is one of the principal British companies in the field of services to utilities and the public sector. With this acquisition, Ferrovial Serviciosnot only increases its turnover, but also expands its product offering in certain areas.The integration of Enterprise into Amey will generate cost and revenue synergies estimated at c.GBP40mn.In 2012, Enterprise turned over more than EUR1,200mn, excluding the joint-venture with Mouchel, which is not included in this agreement. Thecompany has 9,600 employees and provides services to energy and water companies, as well as environmental and highway maintenance servicesfor the public sector.This deal is part of the company’s strategic objective of profitable growth by means of selective transactions and the development of the Servicesactivity, together with an expanding internationalization, as demonstrated by the increase of its activities in Poland and Qatar.The merger of Enterprise with Amey, subsidiary of Ferrovial Servicios in the UK, will create a company with one of the broadest product offerings inthe UK, 21,000 employees and turnover in excess of EUR2,600mn. Amey will now manage more than 320 contracts, covering a wide range ofintegrated services: utilities, infrastructure maintenance for road, rail and plant, waste management, solutions for government, social housing andconsultancy.
  7. 7. Results January-March 20137CONSTRUCTIONMar-13 Mar-12 Chg. %Like-for-Like(%)Revenues 820.5 898.3 -8.7 -6.0EBITDA 55.1 48.5 13.5 7.3EBITDA Margin 6.7% 5.4%EBIT 48.7 39.7 22.7 11.6EBIT Margin 5.9% 4.4%Backlog* 8,538.2 8,699.4 -1.9 -2.5*Backlogs compared with December 2012The drop in activity (-6.0% in comparable terms) is a continuation of thetrend seen in recent years: a significant decline in activity in Spain offsetby the growth in other international markets, principally the US. Note thatin the first quarter, international turnover accounted for more than 73%of the division’s sales.In the first quarter of 2013 there was also a significant drop in activity inPoland after the completion of some large infrastructure projects, and thiswas not offset by new contracts due to the decline in highwayconstruction contracts put out to tender last year.EBIT growth reached 7.3% in comparable terms, principally as areflection of the improved results in the US.BUDIMEXMar-13 Mar-12 Chg. %Like-for-Like(%)Revenues 188.7 264.9 -28.8 -21.6EBITDA 7.4 11.4 -35.1 -48.1EBITDA Margin 3.9% 4.3%EBIT 5.7 8.2 -31.0 -53.6EBIT Margin 3.0% 3.1%Backlog* 1,136.9 1,193.9 -4.8 -2.6The quarter was notable for the completion of large projects and thedecline in public-sector contracts put out to tender, as well as for badweather.The backlog stood at EUR1,137mn, or a contraction of 2.6% vs.December 2012, reflecting the impact of the cut in public investment inhighways already known and the completion of large projects. The abovewas partly offset by the award of some large industrial constructionprojects (for a copper processing plant).In addition to the above-mentioned industrial construction contracts,Budimex has been pre-awarded contracts since the end of the quarterworth more than EUR300mn.WEBBERMar-13 Mar-12 Chg. %Like-for-Like(%)Revenues 157.8 115.2 36.9 36.0EBITDA 7.0 4.7 48.1 46.9EBITDA Margin 4.5% 4.1%EBIT 5.5 3.4 59.6 58.3EBIT Margin 3.5% 3.0%Backlog* 1,324.8 1,288.3 2.8 -0.1Webber reported strong revenue growth in local currency terms (+36%)as a reflection of the increase on the level of execution on the NTE andLBJ toll motorways, with the organic business remaining at the samelevels as in 2012.The backlog remained stable in spite of the higher execution on the“managed lanes” and thanks to new contract awards such as the US-290,the I-10 highways.FERROVIAL AGROMANMar-13 Mar-12 Chg. %Like-for-Like(%)Revenues 474.0 518.2 -8.5 -8.3EBITDA 40.7 32.4 25.4 25.8EBITDA Margin 8.6% 6.3%EBIT 37.5 28.0 33.9 34.4EBIT Margin 7.9% 5.4%Backlog* 6,076.5 6,217.2 -2.3 -3.0Revenues fell 8.3%, principally as a consequence of the performance ofthe Spanish market (-31%), where the civil works segment was inparticularly sharp decline due to cutbacks in public works put out totender (-45% in 2012). This contraction in the Spanish market waspartially offset by the positive contributions from other internationalmarkets, especially the US, thanks to the works related to new tollmotorways in Texas, as well as contributions from projects in the UK(Cross Rail) and Canada (407 East Extension).The improvement in profitability is a reflection of the margins generatedon the US projects and also of the reversal of provisions due to projectcompletions not being offset by the start of new projects.BACKLOGMar-13 Dec-12 Chg. %Civil work 6,740.8 6,837.4 -1.4Residential work 184.4 284.2 -35.1Non-residential work 891.4 867.2 2.8Industrial 721.6 710.6 1.5Total 8,538.2 8,699.4 -1.9The backlog declined 1.9% vs. December 2012 given the slowdown in theaward of new contracts which could not cope with the level of workexecution.The contract for the NTE Extension (approximately for EUR760mn) hasnot yet been included in the backlog, it will be done once theproject reaches financial close.Ferrovial is now being considered as a benchmark in the US marketthanks to its ability to develop complex projects such as the LBJ and NTEtoll motorways in Texas.The international backlog stood at EUR5,982mn at the end of the quarter,well above the domestic backlog (EUR2,556mn, -3%). The weight of theInternational backlog represents more than 70% of the total.
  8. 8. Results January-March 20138AIRPORTSThe contribution made by HAH to Ferrovial’s equity-accounted results wasa negative EUR5.9mn (including two months of Stansted Airport’sresults); this principally reflected the combination of the positive impactof the capital gain on the sale of Stansted Airport (EUR137.8mn) and thenegative impact (-EUR128mn) of marking the derivatives portfolio tomarket (mainly due to the inflation-linked elements).HAH TRAFFICIn the first quarter of 2013, traffic at Heathrow Airport reached a new all-time high of 16 million passengers (+1.8%), beating the previous recordin the first quarter of 2012. Adjusting for the leap year in 2012, theincrease would have been 3%.This traffic growth reflected an acceleration of the trends observedrecently of increasing load-factors and the use of larger aircraft. Load-factors reached first-quarter historical highs (71.9% vs. 69.5% in 2012)and the average number of seats per flight reached 199.9 per aircraft (vs.195.5 in 2012). The acquisition of bmi by British Airways made a notablecontribution to these results, as bmi’s old routes are now seeing load-factors more in line with those of BA.T5 has recently been named, for a second year in a row, as the bestairport terminal in the world by “Skytrax World Airports Awards”.International traffic at Heathrow (+2.2%) outperformed domestic traffic,particularly in terms of European routes, with growth on routes to Italy,Germany and Norway.Routes to emerging economies such as China, India, Russia and Brazilsaw traffic growth. There was also growth on routes to the Middle East,but only modest increases in traffic on routes to North and SouthAmerica.Breakdown of traffic by destination (Stansted excluded from both years):Mar-13 Mar-12 LfL (%)UK 2.6 2.6 -2.0%Europe 7.3 7.0 3.8%Long Haul 8.5 8.4 0.4%Total 18.3 18.1 1.4%TARIFFSThe maximum applicable aeronautical tariff increases for the 2012/2013regulatory year came into effect on 1 April 2012.The following table shows the increase at Heathrow Airport in April 2012that supported the revenue growth in 1Q13:2012 RegulationHeathrow +12.7% RPI+7.5%The tariffs that came into force on 1 April 2013 were based on inflation inAugust 2012, which was 2.9%. Tariffs at Heathrow Airport have increasedby 10.4%.GBP Traffic Revenues EBITDA EBITDA MarginMar-13 Mar-12 Chg. Mar-13 Mar-12 Chg. Mar-13 Mar-12 Chg. Mar-13 Mar-12Chg.(bps)Heathrow 16.0 15.7 1.8% 494 462 6.7% 228 206 10.7% 46.2% 44.6% 167Heathrow express 45 45 1.7% 16 15 8.2% 36.3% 34.1% 216Holding -19 -23 -1 2Heathrow total 16.0 15.7 1.8% 520 484 7.4% 244 223 9.4% 47.0% 46.1% 87Stansted* 2.2 2.4 -7.7% 32 30 5.9% 7 5 43.1% 22.4% 16.6% 584Regulatedairports18.1 18.0 0.6% 551 514 7.3% 251 228 10.1% 45.6% 44.4% 118Glasgow 1.3 1.4 -0.6% 18 17 2.3% 3 4 -18.0% 17.9% 22.3% -443Aberdeen 0.7 0.7 -1.3% 14 13 2.9% 4 4 -2.2% 31.2% 32.8% -163Scottish airports 2.1 2.1 -0.9% 31 30 2.6% 7 8 -9.6% 23.7% 26.9% -319Southampton 0.3 0.3 -6.5% 5 5 -3.1% 1 1 -26.3% 12.5% 16.5% -393Adjustments -1 -2 -3 -3Total (LfL) 20.5 20.5 0.3% 587 548 7.3% 256 234 9.6% 43.6% 42.7% 92Perimeter changes 1.1 41 13Total 20.5 21.6 -4.8% 587 589 -0.2% 256 247 3.6% 43.6% 42.0% 161*Until February
  9. 9. Results January-March 20139INCOME STATEMENTGBP Mar-13 Mar-12 Chg. % LfL (%)Revenues 587.4 588.6 -0.2 7.3EBITDA 256.3 247.3 3.6 9.6EBITDA margin % 43.6% 42.0%Depreciation 132.2 152.5 -13.3 -3.5EBIT 124.1 94.8 30.9 28.1EBIT margin % 21.1% 16.1%Impairments & disposals 349.4Financial results -605.9 -241.3 -151.1 13.0EBT -132.3 -146.4 9.6 47.7Corporate income tax 117.3 111.9 4.8 -21.5Net income (100%) -15.1 -34.6 56.4 55.3Contribution toFerrovial equityaccounted result (€)-5.9 -20.7 71.3 55.3Revenues and EBITDA growth of 7.3% and 9.6% respectively reflectedthe 10.7% increase in aeronautical revenues, driven by the increase intariffs (+12.7% at Heathrow in April 2012), and the increase in passengertraffic (+1.4%); Comercial revenues increased by 4.2% and Otherrevenues by 1.8%.The substantial worsening in the financial result was principally areflection of the deterioration in the market value of the inflation-linkedderivatives (-GBP434mn) taken out by Heathrow after the increase inexpectations of future inflation in the UK; this has no cash impact.GBP Mar-13 Mar-12 Chg. % LfL (%)Aeronautic 336.8 326.6 3.1 10.7Retail 129.4 137.3 -5.7 4.2Others 121.2 124.7 -2.8 1.8TOTAL 587.4 588.6 -0.2 7.3AeronauticalRetail OtherGBP Mar-13LfL(%)Mar-13LfL(%)Mar-13LfL(%)Heathrow 300.9 11.7 107.5 3.3 130.4 -2.3Stansted 16.8 5.7 11.6 16.0 3.4 -18.0Glasgow 8.3 0.3 5.9 2.8 3.4 6.6Aberdeen 7.4 -0.1 2.6 6.5 3.6 6.9Southampton 3.3 -1.2 1.5 -9.6 0.5 5.2Other &adjustments0.2 -9.8 -20.0 -21.3Totalairports336.8 10.7 129.4 4.2 121.2 1.8Aeronautical revenues increased by 11.7% at Heathrow thanks to thecombination of an improvement in traffic (+1.8%) and the tariff increase(+12.7%) in April 2012.Retail earnings (+4.2%) continued the positive trend seen in previousyears.At Heathrow, retail earnings increased by 3.3%. Net retail earnings perpassenger reached GBP6.33, or an increase of 1.2%. Net retail earningsper passenger were probably affected by the higher proportion ofEuropean traffic, which has traditionally had a lower propensity to spendmoney in Heathrow’s retail area.REGULATORY MATTERSDEFINING HEATHROW’S DEVELOPMENT FOR THE NEXT5 YEARSFollowing publication of the full business plan in January, the next stepsin the regulatory review process are for the CAA to complete its ownresearch and analysis. It is expected to publish its initial price capproposals at the end of April 2013 for consultation. Final price capproposals are expected to be published in October 2013. Following theenactment of the new Civil Aviation Act 2012, the CAA will also provide adraft airport licence alongside the price cap proposals.REGULATORY ASSET BASE (RAB)The increase in the RAB to GBP13,727mn (vs. GBP13,471mn) reflects theinvestments made (GBP307mn) and the increase in inflation (GBP105mn),offset by depreciation during the period (GBP145mn) and the profiling(GBP10mn).NET DEBTGBP Mar-13 Dec-12 Chg. %Senior loan facility 588.1 587.7 0.1%Subordinated 716.8 717.0 0.0%Securitized Group 10,671.8 11,315.2 -5.7%Non-Securitized Group 334.4 337.2 -0.8%Other & adjustments -348.5 -26.2 n.s.Total 11,962.7 12,931.0 -7.5%DIVIDENDSIn 2012 HAH distributed GBP240mn to its shareholders in the form ofdividends. In the first quarter of 2013 it distributed GBP64mn.DISPOSALSSALE OF STANSTED AIRPORTThe sale process initiated in August 2012 was concluded on 18 Januarywith the announcement of the sale of Stansted Airport to MAG(Manchester Airport Group) for GBP1,500mn (EBITDA 2012 GBP94mn,RAB 2012 GBP1,343mn). The deal was closed on 28 February,contributing capital gains of GBP353mn (100%) or EUR137.8mn toFerrovial’s net result.The proceeds were applied to the early amortization of a GBP639mnrevolving line of credit, a GBP100mn Class B loan and GBP300mn were upstreamed out of the securitized group, for the partial retirement of debtof ADI Finance 1 Limited or for distribution to HAH shareholders.
  10. 10. Results January-March 201310CONSOLIDATED INCOME STATEMENTBefore FairvalueAdjustmentsFair valueAdjustmentsMar-13Before FairvalueAdjustmentsFair valueAdjustmentsMar-12Revenues 1,643 1,643 1,707 1,707Other income 2 2 5 5Total income 1,645 1,645 1,712 1,712COGS 1,464 1,464 1,520 1,520EBITDA 181 181 192 192EBITDA margin 11.0% 11.0% 11.2% 11.2%Period depreciation 51 51 51 51EBIT (ex disposals & impairments) 130 130 141 141EBIT margin 7.9% 7.9% 8.3% 8.3%Disposals & impairments 20 20 0 0EBIT 150 150 141 141EBIT margin 9.1% 9.1% 8.3% 8.3%FINANCIAL RESULTS -114 99 -15 -92 -26 -117Financial result from financings of infrastructures projects -84 -84 -67 -67Derivatives, other fair value adjustments & other financial resultfrom infrastructure projects-2 68 66 -5 -4 -9Financial result from financings of other companies -13 -13 -8 -8Derivatives, other fair value adjustments & other financial resultfrom Other companies-14 31 17 -11 -22 -33Equity-accounted affiliates 136 -124 13 4 -15 -11EBT 172 -25 148 53 -41 13Corporate income tax -10 -25 -35 -16 8 -8Net Income from continued operations 162 -50 112 37 -33 4Net income from discontinued operationsCONSOLIDATED NET INCOME 162 -50 112 37 -33 4Minorities 10 -23 -12 2 1 3NET INCOME ATTRIBUTED 172 -72 100 39 -32 8
  11. 11. Results January-March 201311REVENUESMar-13 Mar-12 Chg. % Like-for-Like (%)Construction 820.5 898.3 -8.7 -6.0Toll Roads 97.0 88.0 10.2 10.1Services 710.3 732.9 -3.1 -1.9Others 15.0 -12.1 n.s.Total 1,642.8 1,707.2 -3.8 -1.8EBITDAMar-13 Mar-12 Chg. % Like-for-Like (%)Construction 55.1 48.5 13.5 7.3Toll Roads 59.2 80.3 -26.3 -26.3Services 70.8 69.4 2.0 2.8Others -4.4 -6.2 n.s.Total 180.8 192.0 -5.9 -6.2DEPRECIATIONDepreciation was maintained at the same level as last year at EUR51mn.EBIT (before impairments and disposal of fixed assets)Mar-13 Mar-12 Chg. % Like-for-Like (%)Construction 48.7 39.7 22.7 11.6Toll Roads 43.8 66.3 -33.9 -33.9Services 42.4 42.3 0.0 1.0Others -5.2 -6.8 n.s.Total 129.7 141.4 -8.3 -9.5*For purposes of analysis, all the comments referring to EBIT are beforeimpairments and disposals of fixed assets.IMPAIRMENTS AND DISPOSAL OF FIXED ASSETSEUR20mn for the capital gain on the sale of Amey’s Joint-Ventures.NET FINANCIAL EXPENSESMar-13 Mar-12 Chg. %Infra projects -84.3 -67.4 -25.1Other -13.4 -7.7 -74.1Net financial result (financing) -97.7 -75.1 -30.1Infra projects 65.7 -9.0 n.s.Other 17.1 -33.4 151.2Derivatives, other fair valueadjustments & other financial result82.8 -42.4 295.3Financial Result -14.9 -117.5 87.3The financial result improved by 87.3%, thanks to a combination of:A 30.1% deterioration in the financing result, principally as a reflection ofthe increased financial expenses on infrastructure projects due to anincrease in the level of debt associated with the projects that startedoperations (SH-130). The other companies also saw their financialexpenses increase, mainly due to financial expenses generated with thebond issuance and early anticipation costs on bank debt.Movements in the financial result due to derivatives and others weredetermined by the impact of the rise in Ferrovial’s share price on thederivatives contracts covering share option schemes. On this occasionand due to the entry into force of the IFRS 13, mandatory from January1, 2013, the credit risk of the parties involved in the contract must beincluded in the valuation of derivatives to the Fair Value Measurement.The first impact is recognized in the profit and loss account as stated inparagraph BC229 of the standard, indicating that the application of thisnew approach must be done prospectively like a change in estimates.Successive changes in the credit risk will be recorded against reserves tothe extent that derivatives qualify for hedge considered efficient.EQUITY ACCOUNTED RESULTSMar-13 Mar-12 Chg. %Construction -0.4 0.0 n.s.Services 4.5 2.8 n.s.Toll Roads 14.4 6.7 114.2Airports -5.9 -20.7 0.7Total 12.6 -11.2 2.1The companies consolidated by the equity method made a contribution ofEUR12.6mn (vs. –EUR11mn in 2012). This was principally a reflection ofthe contribution from the 407ETR toll motorway (EUR13.7mn). At HAH (-EUR5.9mn), the accounting losses on marking to market the inflation-linked derivatives almost completely offset the capital gain on the sale ofStansted airport.NET RESULTThe group made a net profit of EUR100mn (vs. EUR8mn in 2012),principally due to the positive impact of marking to market its portfolio ofderivatives and the capital gains on the disposals of Amey’s Joint-Ventures.
  12. 12. Results January-March 201312BALANCE SHEET AND OTHER MAGNITUDESMar-13 Dec-12FIXED AND OTHER NON-CURRENT ASSETS 16,997 16,638Consolidation goodwill 1,511 1,487Intangible assets 118 116Investments in infrastructure projects 7,170 6,755Property 40 35Plant and Equipment 499 507Equity-consolidated companies 4,232 4,304Non-current financial assets 1,654 1,668Receivables from Infrastructure assets 1,331 1,334Financial assets classified as held for sale 1 1Restricted Cash and other non-current assets 149 148Other receivables 173 186Deferred taxes 1,606 1,609Derivative financial instruments at fair value 168 158CURRENT ASSETS 5,408 5,580Assets classified as held for sale 2 2Inventories 407 394Trade & other receivables 2,363 2,203Trade receivable for sales and services 1,716 1,647Other receivables 525 436Taxes assets on current profits 123 120Cash and other financial investments 2,625 2,972Infrastructure project companies 278 237Restricted Cash 37 25Other cash and equivalents 241 212Other companies 2,347 2,735Derivative financial instruments at fair value 11 8TOTAL ASSETS 22,405 22,217EQUITY 5,752 5,762Capital & reserves attributable to the Company´s equity holders 5,575 5,642Minority interest 177 121DEFERRED INCOME 393 356NON-CURRENT LIABILITIES 11,357 11,117Pension provisions 80 105Other non current provisions 1,295 1,166Financial borrowings 7,234 6,996Financial borrowings on infrastructure projects 6,018 5,825Financial borrowings other companies 1,216 1,171Other borrowings 202 203Deferred taxes 1,110 1,080Derivative financial instruments at fair value 1,436 1,567CURRENT LIABILITIES 4,902 4,982Financial borrowings 1,297 1,229Financial borrowings on infrastructure projects 1,229 1,168Financial borrowings other companies 68 61Derivative financial instruments at fair value 63 65Trade and other payables 3,145 3,273Trades and payables 2,459 2,648Deferred tax liabilities 95 75Other liabilities 592 549Trade provisions 397 415TOTAL LIABILITIES & EQUITY 22,405 22,217
  13. 13. Results January-March 201313CONSOLIDATED NET DEBTThe net cash position excluding infrastructure projects stood atEUR1,047mn at the end of the first quarter of 2013. This position doesnot reflect the payment made in April 2013 for the acquisition of theBritish services company Enterprise.This is EUR442mn less than the amount reported at end-2012(EUR1,489mn), very much in line with the deterioration seen in the firstquarter of 2012 vs. The close of 2011 (EUR388mn), reflecting theseasonality in payments and in cash generation in the first part of theyear. This slight deterioration is mainly due to a payment made to theSpanish tax authorities in January 2013 for the withholding tax(EUR85mn) on the dividend distribution in December 2012.Ferrovial made investments totalling EUR79.5mn in 1Q13.Net Project debt reached EUR6,803mn. The variation vs. December 2012(EUR6,595mn) is principally due to the investment in projects in theconstruction phase.This Project debt includes EUR1,177mn of net debt related to tollmotorways under construction (the NTE and the LBJ). It also includesEUR1,119mn related to the R4 and the OLR, which have sought creditorprotection.The group’s net debt amounts to EUR5,756mn.Mar-13 Dec-12NCP ex-infrastructures projects 1,047.1 1,489.2Toll roads -6,445.2 -6,238.1Others -357.7 -356.6NCP infrastructures projects -6,802.9 -6,594.7Net Cash Position -5,755.8 -5,105.5CORPORATE CREDIT RATINGIn August 2011, the rating agencies Standard&Poor’s and Fitch Ratingsrated Ferrovial for the first time, in both cases as Investment Grade.These opinions were confirmed by both agencies in the second quarter of2012:Agency Rating OutlookS&P BBB- StableFITCH BBB- StableCORPORATE BOND ISSUANCEIn January, Ferrovial successfully placed its first bond issue (EUR500mn,five years). The issue was closed at a price of 240bp over midswap, witha coupon of 3.375%. Demand exceeded EUR5,590mn, of 11xoversubscribed. More than 93% of the issue was placed outside Spain,mainly in countries such as Germany, France the UK and Switzerland.Ferrovial’s net proceeds from the deal amounted to EUR496.2mn, which itused to optimise its financial structure by retiring part of its corporatebank debt and extending its maturity profile. The next significantmaturities fall in 2015 (EUR661mn), and then again in 2018 (EUR501mn).Bond performance: Since its issuance below par at 99.692, it has stronglyperformed till 102.374, yielding an implicit 2.9% at the end of march.
  14. 14. Results January-March 201314APPENDIX I: SIGNIFICANTEVENTS Ferrovial successfully issued EUR500mn of bonds maturing on30 January 2018.(18 January 2013)Ferrovial Emisiones, S.A., a subsidiary of Ferrovial, successfullycompleted the pricing of a EUR500mn bond issue maturing on 30January 2018 and guaranteed by Ferrovial and some of its subsidiaries(the Bonds). The Bonds will accrue a 3.375% coupon payableannually.On 3 January the Bonds were subscribed and paid for by the investorsfor whom the issue was intended, and the Bonds started trading inthe regulated London stockmarket.The net proceeds of EUR497.75mn were applied to amortising existingcorporate debt. Ferrovial Services reached an agreement with 3i Group plc toacquire 100% of the capital of Enterprise Plc.(21 February 2013)The investment made by Ferrovial Services amounted to an EV ofGBP385mn (EUR443mn). The perimeter of the transaction does notinclude Enterprise’s joint-venture with Mouchel Limited (Mouchel) forhighway maintenance services in the UK.Enterprise is one of the principal British supplier of services to energyand water companies (“utilities”), as well as to public-sectorinfrastructure clients. In 2012 it turned over GBP1,100mn(EUR1,267mn) with EBITDA of GBP60mn (EUR69.1mn), excluding thejoint-venture with Mouchel.With this acquisition, Ferrovial Services – whose UK presence isthrough its subsidiary Amey – enters the utility supply services sector,and also strengthens its environmental services business.The deal was closed on 9 April 2013, once it had the competitionauthorities’ green light.
  15. 15. Results January-March 201315APPENDIX II: PRINCIPALCONTRACT AWARDSCONSTRUCTION Hetco 2 Programme Change, Heathrow Airport, UK. Juncal teaching building, Alcobendas, Spain. 134 residential units, Miralbueno, Spain. EDAR Tomaszow Mazowiecki, Department of Water Management inTomaszow, Poland. Cesion Gomasper, Canary Islands government, Spain. Reforma Hotel Beach House, Evertmel, S.L., Spain. 65 Viviendas La Térmica, Inmobiliaria Acinipo, Spain. Metro Railway Station Granada, Granada Metro, Spain. EDAR Gorzow Wielkopolski, Department of Water and DrainageManagement, Poland. Maintenance of EDARs Ibiza Zone E-2, Balearic Islands government,Spain.BUDIMEX A4 Rzeszow West - Rzeszow Central, Generalna Dyrekcja DrógKrajowych, Poland. University Hospital Clinic in Bialysto, Medyczny University, Poland. KGHM – industrial units, Poland. Breakwater refurbishment in Dziwnow, Poland.WEBBER US 290, TxDOT, USA. Denton FM 1171, TxDOT, USA. I 10 Bexar County, TxDOT, USA. I-45 TMS Improvements, TxDOT, USA.SERVICESSPAINIndustrial, Waste Treatment and Local Administrations Renewal of the urban waste collection and highway cleaning contractin Premiá del Mar. New contract for gardening services in the Banco de Santanderfinancial city. Contract extension for urban waste collection in Formentera.Infrastructure New contract for maintenance of Telefónica data centres. Extension of integrated services management in various districts ofMadrid (Usera, Fuencarral-El Pardo, Hortaleza and Central). Extension of cleaning contract for the Virgen del Rocío UniversityHospital. Extension of cleaning contract for the University of Seville.UNITED KINGDOM Extension of HAH contracts: maintenance of Heathrow Airport T4 andT5, Heathrow Express and Stansted Airport. New consultancy contract for integrated services for the County ofKent. Extension of HAH contracts: Maintenance of T4 and T5 terminals atHeathrow Airport.INTERNATIONAL Inclusion of Steel Ingeniería, Chile backlog. Renewal of urban waste collection contract for Planalto Beirao,Portugal. Inclusion of Ferrovial Services Polish backlog.
  16. 16. Results January-March 201316APPENDIX III: EXCHANGE-RATE MOVEMENTSExchange-rate Last(Balance sheet)Change% 13/12Exchange-rate Mean(P&L)Change% 13/12GBP 0.8437 3.8% 0.8537 2.4%US Dollar 1.2819 -2.9% 1.3162 -0.7%Canadian Dollar 1.3045 -0.6% 1.3354 1.1%Polish Zloty 4.1801 2.3% 4.1752 0.3%Exchange rates are expressed in units of currency per euro, with negative variations signifying euro depreciation and positive variations euroappreciation.INVESTOR RELATIONS DEPARTMENTADDRESS: PRÍNCIPE DE VERGARA 135 - 28002 MADRIDTELEPHONE: +34 91 586 25 65FAX: +34 91 586 26 89E-MAIL: IR@FERROVIAL.ESWEB: HTTP://WWW.FERROVIAL.COMImportant informationThis document contains statements regarding the Company’s future intentions, expectations and forecasts at the time of writing. These statements arebased on projections and financial estimates with underlying assumptions, announcements relating to plans, objectives and expectations that refer tovarious aspects, including the growth of the various lines of business and the global business, market share, the Company’s results and other aspectsrelating to its activities and situation.These estimates, projections and forecasts are not in themselves guarantees of future performance as they are subject to risks, uncertainties and otherimportant factors that could result in the development and final results differing from those contained in these estimates, projections and forecasts.This should be taken into account by all individuals or institutions that might have to take decisions or form or transmit opinions relating to stocks andshares issued by the Company, and in particular, by the analysts and investors who consult this document. All interested parties are invited to consultthe documentation and information publicly available or filed by the Company with stock market supervisory authorities and, in particular, theinformation filed with the CNMV (the Spanish stock market regulator).

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