Ferrovial N.V. · BME:FER

Ferrovial — Q1 2019 Earnings Presentation

18 slides from Ferrovial's earnings presentation, May 7, 2019

  1. Slide 1: 1Q 2019 Results

    1Q 2019 Results ferrovial 7 May 2019

  2. Slide 2: Disclaimer

    Disclaimer This document may contain statements that constitute forward looking statements about the Company. These statements are based on financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations, which refer to estimates regardin

  3. Slide 3: 1Q 2019 Highlights

    1Q 2019 Highlights  MLs performance boosted by new connections Strong growth  Record traffic at Heathrow (17.9mn pax) from our  407ETR: traffic highly impacted by severe weather conditions main infra assets  Ausol held for sale Construction  €345mn provision related to US projects Services  Se

  4. Slide 4: 407 ETR

    407 ETR Equity method, Ferrovial stake 43% Toronto, Canada Solid results despite extreme weather 10.5% 7.1% 4.7% -2.0% Traffic (VKT) Revenues EBITDA Dividends CAD309mn CAD263mn CAD250mn 44

  5. Slide 5: 407 ETR: severe winter weather impact

    407 ETR Equity method, Ferrovial stake 43% Toronto, Canada (CAD mn) Severe winter weather causes major traffic disruption January February March +1.0% Monthly VKT performance (YoY) -2.0% -4.6% 0.4% • 2019 January: record single day snowfall on a workday (24cm) • 2019 February: 18mm freezing rain all

  6. Slide 6: Managed Lanes

    Managed Lanes Global Consolidation Texas, USA (USD mn) Outstanding performance continues NTE LBJ +43.5% REVENUES +23.5% +48.9% EBITDA +26.2% +20.8% TRAFFIC * +5.5% NTE – EBITDA LBJ – EBITDA 28 30 22 83.0% 20 86.5% 18 17 81.3% 12 83.3% 11 82.0% 80.9% 6 75.1% 67.5% 72.3% 1Q 2016 1Q 2017 1Q 2018 1Q 201

  7. Slide 7: Dallas connectivity

    Dallas connectivity Texas, USA  Growing ML network  The Dallas-Ft. Worth managed lane network added several key links in the previous year. Notable links include 183 TEXpress which connects directly to both the NTE and LBJ. Both roads have seen increases in traffic following the end of constructio

  8. Slide 8: Toll Roads

    Toll Roads (€ mn) US keeps growing USA CONTRIB. TO CONSOLIDATED EBITDA* 62%  >60% EBITDA from US assets 52% 40%  +c.45% EBITDA growth (LfL) 30% • NTE 35W contribution: €11mn (mg 74.8%) 2016 2017 2018 1Q2019 • Significant growth at NTE & LBJ * Exc. headquarters TOLL ROADS RESULTS  +10.5% higher 40

  9. Slide 9: Heathrow

    (GBP mn) Heathrow (FER stake 25%) Equity Method UK Another traffic record (+1.4%) with lower aeronautical tariff per pax (-2.4%) New routes boost UK connectivity - Over 210 global destinations now connected via a direct flight. Global appetite to invest in Heathrow - €650mn bond >4x oversubscribed

  10. Slide 10: Heathrow expansion timeline

    Heathrow Completed To come Heathrow Expansion – expected calendar Government CAA CAA CAA Heathrow consultation Airspace & consultations consultation and final report Future and policy 1 launched to Secretary of Operations State on airline updates engagement consultation 2017 2018 2019 2020 2021 Heat

  11. Slide 11: Construction

    Construction €345mn provision for estimated future costs in US projects US contracts main impacts: 1Q 2019 RESULTS • Boom in construction / surge in subcontractor prices 1Q 2019 % Ch % CH LFL • Hike in raw material prices Revenues 1,093 +4.4% +2.4% EBITDA -325 n.s. n.s. • Delays in design approvals,

  12. Slide 12: Services

    Services Discontinued activity Services divestment on track In order to analyze the performance of the Services division, the results of the Services activity & sub-activities are shown below prior to their classification as held for sale 1Q 2019 RESULTS  UK: €7mn EBITDA (€ mn) • Revenues +36.1% (L

  13. Slide 13: Consolidated P&L - Accounting impacts

    Consolidated P&L - Accounting impacts • IFRS 16 (Leases) first application: Reclassification between EBITDA, amortisation and Financial result with no significant impact at EBIT and Net Income level. EBITDA impact: €6mn (EUR mn) MAR-19 MAR-18 VAR. LIKE FOR LIKE Toll Roads 93 62 51.2% 44.6% Airports

  14. Slide 14: Consolidated P&L

    Consolidated P&L (€ mn) P&L (EUR mn) MAR-19 MAR-18 REVENUES 1,229 1,146 • Revenues: higher contribution from US toll roads Construction Provision -345 • EBITDA ex-IFRS 16 impacted by -€345mn (at 100%) Construction EBITDA ex-IFRS 16 -236 89 provision. EBITDA -230 • EBITDA: IFRS 16 (leases reclassific

  15. Slide 15: Ex-infra Cash Flow – sources & uses

    Ex-infra Cash Flow – sources & uses (€ mn) Dividends from EBITDA ex-provision Divestments Financing Other SOURCES projects 77 13 326 4 117 WC evolution* Investments Other USES 446 66 24 Net cash, ex-infra**: €910mn * WC evolution excluding the non-cash provision impact (€345mn) **Including the net c

  16. Slide 16: … looking forward

    … looking forward Focused on construction risks. Services as discontinued activity Capital allocation focused on infra projects, mainly in North America NTE & LBJ to pay dividends in 2019 - 2020 16

  17. Slide 17: Q&A

    Q&A 19 17

  18. Slide 18: Investor Relations contact

    ferrovial INVESTOR RELATIONS DEPARTMENT - C/ Príncipe de Vergara, 135 - 28002 MADRID (Spain) T: +34 91 586 27 30 F: +34 91 586 28 69 e-mail: ir@ferrovial.es website: www.ferrovial.com

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