Ferrovial N.v. · BME:FER
Ferrovial — Investor Presentation (May 2010)
24 slides from Ferrovial's investor presentation, May 2010
Slide 1: Group operations; Current market scenario
• Group operations • Current market scenario
Slide 2: An international infrastructure operator
An international INFRASTRUCTURE operator 90% OF FERROVIAL’S EBITDA • 25 Toll roads • Eight airports, • 2,900 kilometres operated including Heathrow • €19 billion investment • Number one private operator • Present in 7 countries • 107mn pax in UK • Urban infrastructures • Roads and railways • Waste m
Slide 3: An international infrastructure operator
An INTERNATIONAL infrastructure operator Ferrovial Ferrovial IPO Cintra IPO FER & CIN Foundation Merger BAA First Agroman 407 – ETR Toll Road (Canada) Real Estate (Spain) disposal (Spain) First intl. Budimex Amey First U.S. Webber Gatwick Sidney Bristol WDF APP Toll Road (Poland) (UK) Toll Road (U.S
Slide 4: Group operations
• Group operations • Current market scenario 4 Investor Relations Department E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 Figures in million Euros
Slide 5: Good assets, good business, good backlog
Good assets, good business, good backlog • Sizeable international backlog • 90% of international construction backlog from Group companies • Profitable international construction offsets domestic decline • World class assets • Resilience during economic downturn • Prone to growth as economy recovers
Slide 6: Sizeable international backlog
Sizeable international backlog CONSTRUCTION SERVICES (ex-Swissport) CONSTRUCTION SERVICES €11.0bn €13.3bn >90% 63% International backlog International backlog from Group companies (*) March´10 backlog, including LBJ €1.3bn in Construction and Birmingham €3.3bn in Services 6 Investor Relations Depart
Slide 7: Profitable international construction offsets domestic decline
Profitable intl. construction offsets domestic decline 2007-2010 DOMESTIC INTERNATIONAL* -24% +91% Highest ever backlog: €11.0bn (*) including LBJ €1.3bn 7 Investor Relations Department E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 Figures in million Euros
Slide 8: World class assets
World class assets Performance during “economic weakness” 2009 1Q’10 2009 1Q’10 Traffic -1.7% +4.4% -1.5% +1.6% Resilience Revenue +2% +10% +11% +7% & EBITDA +7% +16% +22% +5% Growth Combined EBITDA over € 1,000mn yearly “Probably the best two infrastructure assets in the world” (*) Figures in local
Slide 9: Spanish exposure – Non critical
Spanish exposure – Non critical 3,799mn (2.0bn non recourse + 2.0bn recourse debt maturing Dec’12) Toll roads: 10% Net debt Construction, Services & Corporate: 7% 398mn Toll roads: 5% Construction: 4% EBITDA Services: 6% 244mn Toll roads: 2% “ex-infra” Construction: 4% Op. Cash flow Services: 24% 6,
Slide 10: Current market scenario
• Group operations • Current market scenario 10 Investor Relations Department E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30 Figures in million Euros
Slide 11: Current market scenario
Current market scenario Sovereign risk Liquidity constraint Cost & access to financing 11 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 12: Ferrovial's strategy
Ferrovial´s strategy Mature asset rotation Debt optimization Focus on greenfields 12 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 13: Mature assets rotation: €3bn (2009-2010)
Mature assets rotation: €3bn (2009-2010) Gatwick €1,657mn Car parks €400mn To de-leverage BAA's real estate €280mn Chilean toll roads €209mn & finance Tube Lines €238mn Future growth Others (Building, Polish RE,...) €150mn 407-ETR (10% stake) In process 13 E-mail: ir@ferrovial.es – Tel: +34 91 586 2
Slide 14: Debt structure and strategy
Debt structure and strategy Dec ‘09 PARENT Debt reduction by: NET DEBT €1,172MN - Asset rotation - Operating Cash flow PROJECTS TOLL ROADS - Self-financing Debt €7,104 - Strong dividends NET DEBT €21,099MN AIRPORTS - Self-financing Debt €13,853 - Cancel bank facilities - Long dated Bonds 14 E-mail:
Slide 15: Debt profile
Debt profile • 94% of total debt is non-recourse • 65% of debt is investment grade • Long dated profile • Toll roads dividends equivalent to future equity investments • Self-financing BAA ring fence 15 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 16: 94% of total debt is non-recourse
94% of total debt is non-recourse 4% Dec ‘09 6% Ex-project debt NET DEBT €22,271MN 94% Non-recourse Non-recourse debt: 32% Toll roads 62% Airports 16 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 17: 65% of debt is a solid investment grade
65% of debt is a solid investment grade Dec ‘09 Business unit/ Project Debt Rating range ETR 407 3.274 BBB Senior 2.646 A Junior 518 BBB Subordinated 110 A Portugal 545 Euroscut Algarve 240 BBB Euroscut Norte 305 BBB USA 1.332 Chicago skyway 1.084 BBB SH1340 248 BBB Spain 1.195 Ausol 556 BBB Autema
Slide 18: Long dated profile
Long dated profile Dec ‘09 74% Fixed or hedged BAA bond issuance Subordinated debt 5.1% Average cost On track Maturity calendar 407-ETR (532) BAA (2,055) BAA (1,937) BAA (2,479) BAA (622) R4 (557) LEVANTE (496) 11,984 AUSOL (485) CORP. (1,980) CORP. (260) 4,795 3,059 2,524 1,614 796 2010 2011 2012 2
Slide 19: Toll roads dividends equivalent to future equity investment
Toll roads dividends equivalent to future equity investment Natural de-leverage (ETR-407) DEBT / EBITDA DIVIDENDS PERFORMANCE (1999-2019e) x27,1 1999-2009 2010e-2019e x11,1 874 1999 2009 1 10 Static Debt/EBITDA does not reflect growth profile 19 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 20: BAA ring fence self-financeable
BAA ring fence self-financeable GBP 1,600m headroom (junior debt) Ratings Bonds A- preserving ratings Class A A- Class B BBB BAA Gearing ratios (RAR) X0.85 X0.70 x0.74 x0.73 x0.72 x0.67 x0.67 x0.66 Sep-09 Dec-09 March-10 Senior RAR Junior RAR Trigger Trigger • Gearing ratio is the ratio of nominal n
Slide 21: Debt main issues
Debt main issues • On track BAA's Sub debt • Ring - fence head room • Appetite for Bonds and Sub debt facilities “Radials” • Only radials with non recourse to shareholders (Spain) • Working towards a sector solution LBJ • To replicate NTE structure (USA) • NTE bonds trading at tighter spreads 21 E-m
Slide 22: LBJ – To replicate NTE financial structure
LBJ – To replicate NTE financial structure Bringing capital markets to infra projects Equity (Cintra equity contribution USD245mn) Debt related/backed by US Public institutions 19% Private Activity Bonds (USD400mn.) First time ever financing PPP in US 28% Department of Transport of Texas (USD573mn)
Slide 23: It's all about Cash, not Volume
Day to day management Refinancing ahead of calendar Working capital focus Bringing in financial partners Limited equity contribution to new projects Opex under close scrutiny Overheads reduction Preserving margins Safety It’s all about Cash, not Volume 23 E-mail: ir@ferrovial.es – Tel: +34 91 586 27
Slide 24: Conclusion: Good assets, good business, good backlog
Conclusion Good assets, good business, good backlog Disposals: Backlog (€3,000mn) Traffic Refinancing: (€15,000mn) Tariff 24 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30