Ferrovial N.v. · BME:FER
Ferrovial — Broadspectrum — Investor Presentation (February 2018)
15 slides from Ferrovial's investor presentation, Feb 26, 2018
Slide 1: Broadspectrum Development Update
Broadspectrum Development Update Investor Presentation 26 February 2018
Slide 2: Disclaimer
Disclaimer This presentation refers to Broadspectrum Pty Ltd. (the “Company”), a wholly owned indirect subsidiary of Ferrovial, S.A. ("Ferrovial"), a publicly listed company. This presentation has been prepared for the sole purpose expressed therein. Therefore, neither this presentation nor any of t
Slide 3: Agenda
Agenda ˃ Overview of Broadspectrum and strategic rationale ˃ Main actions since acquisition ˃ 2017 performance and future targets -3-
Slide 4: Broadspectrum – A transformational acquisition
Broadspectrum – A transformational acquisition (ex. Broadspectrum) USA & Canada Other 2017 Revenue €b 3% 3% 3% 9% 3% Geographies Spain UK UK 27% 36% Spain 42% €4.6b 55% €2.5b €7.1b ANZ 88% USA & Canada Other ANZ 31% Natural Resources 2% 9% Industry FM & Sectors 18% 13% 31% & Utilities 31% Social FM
Slide 5: Confirmed strategic rationale after the integration
Confirmed strategic rationale after the integration AUS & NZ attractive markets with growth opportunities Leading provider in Australia & New Zealand BRS strong positioning and long-term client relations Growth platform with Integration of BRS Americas into FSI to maximise potential significan
Slide 6: Major player in ANZ delivering core services across different markets
Major player in ANZ delivering core services across different markets BRS ANZ Orderbook Revenue % EBITDA Oper. CF1 Employees Contracts 2017 Figures A$6.5b A$3.3b 5.4% A$216m 14,500 95 Urban Government Resources Transport Infrastructure 10% % 38% 16% Revenue 20% 16%2 Education Power Industrial Public
Slide 7: Growth platform in the Americas
Growth platform in the Americas Orderbook Revenue % EBITDA Oper. CF1 BRS Americas €895m €306m 2.7% €20m 2017 Figures USA & Canada Chile Oil & Gas Mining (BRS) Transport Mining (Steel) Current operations and Client profile Client profile end-markets Revenue €242m €64m Addressable €10.5b €1.1b market
Slide 8: Key developments since acquisition – Preparation for a new growth stage
Key developments since acquisition – Preparation for a new growth stage Exit Immigration contracts Successful contract delivery and transition-out ANZ sector-based structure New operating structure Simplified & performance driven organisation Optimisation of contracts portfolio Improved perf
Slide 9: Strategic plan in place to achieve profitable growth
Strategic plan in place to achieve profitable growth 2017 2018 2022 Actual Guidance Target Revenue CAGR 18-22 (A$b) 3.3 2.8-3.0 4.0%-6.0% EBITDA %EBITDA Margin 5.4% 3.0%-4.0% 5.0%-6.0% (% Revenue) Op. Cash Cash Conversion1,2 216 60%-80% Conversion (A$m; % EBITDA) 85%-95% Capex 0.6% ~1.5% %Capex (% R
Slide 10: Delivering growth in 2018
Delivering growth in 2018 Revenue by ‘development status’ A$b A$600m of annual revenue of bidding 2.8-3.0 opportunities (currently preferred & submitted) 2.7 A$775m of annual revenue of additional 0.3 - 0.5 Growth identified opportunities “to get” in 2018 Leveraged In line with historical aver
Slide 11: Extensive pipeline underpinning mid-term targets
Extensive pipeline underpinning mid- term targets Pipeline breakdown1 2018-22 Target Revenue breakdown2 A$b A$b 4-6% CAGR 3.3-3.8 New Potential Unidentified Markets Urban upside 10% growth Infrastructure 2.8-3.0 8% Transport 21% 15% Identified 34% growth 19% 19% $31b 15% Renewals & 50% Resources Lev
Slide 12: Main growth drivers per sector
Main growth drivers per sector Pipeline1 Target Revenue Growth rationale (A$b) CAGR 18-22 Key competitors Defence Investment Plan A$195bn 2018-26 Spotless Government Top Defence provider; strong client positioning 11.4 4.0%-6.0% Programmed Further outsourcing in social, education and ISS healt
Slide 13: Increasing profitability through operating discipline and cost management
Increasing profitability through operating discipline and cost management % EBITDA (BRS vs. comparable peers) Contract margin improvement Peers 5.0%-6.0% 5.9% plans Average1 Resizing corporate structure Increased mix of value-adding 3.0%-4.0% services Improved governance & risk management (i
Slide 14: Collaborating with Ferrovial to develop differentiating capabilities
Collaborating with Ferrovial to develop differentiating capabilities Government Melbourne Western Roads Upgrade Program Energy Efficiency programs Client: Victoria State Government Complex FM projects Location: Melbourne (Victoria) Consortia: Netflow (Cintra+Plenary) + BRS/Amey + WBHO Urba
Slide 15: Final remarks
Final remarks ˃ Growth potential in core attractive markets ˃ Operating levers to drive performance improvement ˃ Opportunity to add value leveraging Ferrovial capabilities - 15 -
Broadspectrum — Investor Presentation (February 2018) on 6ix