Ferrovial N.v. · BME:FER
Ferrovial — Q1 2016 Earnings Presentation
48 slides from Ferrovial's earnings presentation, June 2016
Slide 1: Ferrovial 1Q 2016
ferrovial 1Q 2016
Slide 2: FY2015 figures
. FY2015 figures Human Resources Environment 74,032 70% Workforce 30% % MALE ." Os FEMALE 419 AVERAGEAGE “®— 42.8 e 85 — YEARSOFSENIORITY @— 84 7% —@ — PERMANENTCONTRACT @— 81% 87% —) MANAGEMENT p— B% Reduction of greenhouse gas emissions 25% —~ —-ROTATIONINDEX — — 0.7% 2009 - 2015 67% —*@ NEWRECRUI
Slide 3: Ferrovial Overview & Strategy
> Ferrovial Overview & Strategy Who we are... We are a transport infrastructure provider/operator with a strong focus on CF generation. Thought based in Spain, c85% of the SOTP is international. 40% of our value comes from downtown Toronto highway, the 407ETR (43% stake). Open & fully electronic, it
Slide 4: What is Ferrovial?
What is ferrovial ? IE = TOLL ROADS + Leading sponsor of toll roads development worldwide + 4O7ETR in Canada & 26 other concessions in 8 different countries ivate infrastruc | - World leadi rl vl esen ee ee + Largest airport private investor + Owns & operates key UK airports (incl. Heathrow) with a
Slide 5: 1. Cash Flow Generation
1. Cash Flow Generation € million €393mn EBITDA from Construction EX-INFRASTRUCTURE PROJECTS €312mn EBITDA from Services ferrovial PARENT COMPANY 65% Institutional & Retail Investors 35% Founder’s family members (Chairman controls 20%) €132mn Dividends from Airports Net cash position Non capital int
Slide 6: 1. Strong cash flow generation
1. Strong cash flow generation € million . . 2015 figures Excluding Infrastructure Projects OPERATING CASH FLOW 2015 Construction 272 Services 289 Toll Roads (dividends) 267 Airports (dividends) B2 Others (70) TOTAL 889 BALANCED CONTRIBUTION 42% DIVIDENDS FROM INFRA PROJECTS CONSTRUCTION SERVICES SO
Slide 7: 2. Profitable growth. Solid Financial Situation
2. Profitable growth. Solid Financial Situation € million 1016 figures EX-INFRASTRUCTURE PROJECTS Net debt evolution ex-infrastructure projects mn 1,484 1,663 1,632 1,514 1,512 907 -3,064 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1016 PARENT COMPANY ____ INFRASTRUCTURE PROJECTS __ \ Debt mat
Slide 8: 3. Shareholder remuneration
3. Shareholder remuneration (cr criteria) 917 2015 2014 €532mn €510mn +4.4% 2009 2010 2011 2012 2013 2014 2015 SHAREHOLDER REMUNERATION PROPOSAL 2016 2015 Scrip dividend (€/share) First scrip dividend (equivalent to 2015 complementary dividend) 0.311 0.304 Second scrip dividend (equivalent to 2016 i
Slide 9: 3. First scrip dividend 2016: details & schedule
3. First scrip dividend 2016: details & schedule DETAILS * Maximum € amount of scrip dividend (cap increase) €234mn ° Reference share price* €18.355 ° Number of free allotment rights per new share** 58 * Guaranteed right purchase price (by Ferrovial) €0.311 * Average of Ferrovial share price (VWAP)
Slide 10: Ferrovial 1Q16 Results
10 > Ferrovial 1Q16 Results ferrovial | Investor Relations
Slide 11: 1Q16 Highlights
1016 Highlights Solid traffic growth Substantial order book Strong financial position Stable HAH & 407ETR dividends Reported results impacted by FX Strong EBITDA from Eq. cons. assets Corporate transactions 41 HAH +2.6% to 16.8mn pax AGS +2.4% to 2.8mn pax 407ETR +0.8% €30.2bn March’16 (-0.3% LfL vs
Slide 12: Toll roads
12 Toll roads € million Significant & steady traffic growth in all markets 407ETR +0.8% traffic despite c.10% increase in tariff (Feb’16) NTE Managed Lanes Revenues +71.5% & record quarterly EBITDA +91% LBJ Managed Lanes Fully opened on Sept’15 (3 months ahead of calendar) Ausol (Spain) debt refinan
Slide 13: 407ETR
407ETR Equity method, Ferrovial stake 43% New bond: CAD500mn, 31Y, 3.6% (May 2016) * 2°d Lowest long dated coupon in its history * 34 Lowest at any tenor 407ETR 1Q 2016 RESULTS (CAD mn) 1916 % Revenues 225 +5.2% EBITDA 188 +8.7% HOUSEHOLD INCOME 2,2x U.S Avg. US Avg. Canadian Avg 115.448 407 ETR Reg
Slide 14: NTE
INDEXED VOLUME 100 14 NTE Global Consolidation, Ferrovial stake 57% MARCH 2010 CORRIDOR TRAFFIC RECOVERY . Construction Construction 135 begins ends | / \ fd 95 75 55 Ye e es ~ e *+25% segment 1 HIGH APPROVAL RATING Favourable & very favourable 70% 46% 48% 2013 2014 2015 Average speed TT DECREASE IN
Slide 15: Services
Services € million 1916 % Results impacted by FX Revenues L157 ~0.4% EBITDA 61 -21.2% Stable revenue growin ee soa, EBITDA % 5.3% -353 bp pain +2.5%, UK +3.4% & International +23.3% Orderbook 21291 6.6% 15 Order bokk close to all-time high €21,291mn at Mar’16 (-1.9% LfL) PERFORMANCE BY GEOGRAPHY Pos
Slide 16: Construction
Construction € million 1016 % " Revenues declined (-7.1% LfL), principally due to the Revenues 806 -8.7% finalisation of the managed Lanes toll road projects EBITDA 59 -9.3% (NTE and LBJ) & the slowdown in the domestic market. EBITDA % 73% = 79% of revenues are international Order book 8,875 +1.6% =
Slide 17: HAH
HAH (Equity method, FERROVIAL stake 25.0%) 100% GBP million "= Traffic +2.6% (16.9mn of passenger) UK -12% Europe +4.2% N.America +3.3% M. East +6.7% 16.8mn pax +2.6% Latam +5.6% Asia Pac-5.7% Africa -5.7% = Improving service quality and user satisfaction AG S (Equity method, FERROVIAL stake 50.0%):
Slide 18: Heathrow: Best ever passenger service levels
Heathrow: Best ever passenger service levels Quarterly passenger satisfaction Q4 2006 - 912016 450 = 420 wn ‘S = 400 420 & 2 380 g 390 G 360 a 3.40 360 320 SBBSeeszqggneNaN Mass 4a 330 eogoeoqogoooco ss RFR X& oe pos oe SSSSSSSQISGRSFRFReRseRe European Average Heathrow European top quartile Departur
Slide 19: 1Q16 Results
1016 Results € million Income Statement Revenues 5 1916 1915 Var % 1916 1915 Var%e : Lf Construction 806 883 -87% Revenues 2,083 2,147 -3.0% 0.4% Airports 1 1 “7.0% Toll Roads puts} 1B 4.6% EBITDA 194 210 -7.4% -2.8% Services 1157 1,162 -0.4% ; 5 ; Other 1 -2 95.4% EBITDA margin 9.3% 9.8% Total 2,08
Slide 20: Ferrovial Investor Relations
Ferrovial Investor Relations 20 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 21: Appendix
21 » Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Diversified porftolio Historic consolidated & business units figures
Slide 22: Location
Location ry : f ; Area of expansion @ asc Marke Tl Rickering i East extension Ring road of Toronto 108 km (07 aa Hamilton = St) Catharines gpg.
Slide 23: ETR
407 ETR All Electronic Roadside Tolling System Sophisticated electronic toll highway = NO toll-booths, “closed ticket” tolling scheme (on/off ramps) = NO stopping or slow-downs to pay = ALL vehicles able to use highway = Transponder not required. If valid transponder is not detected, digital images
Slide 24: ETR: Fast, Safe, Reliable
Fast 407 ETR Safe Reliable TRAFFIC Alternatives routes are highly congested 24
Slide 25: ETR Cash flow and valuation overview
407 ETR Cash flow and valuation overview CASH GENERATION (1999-2015) 407ETR VALUATION (100%) € million € million Cash Generation 0, _ 14,808 Initial equity invest.(62%) -326 mn 100 fo pay back Dividends 1575mn in first 10 years 10%Disposal 640 mn Valuation x28 NET CASHIN 1,889 mn 525 MATURITY _—_—_—
Slide 26: Financial overview
Financial overview (SCAD million) 26 REVENUES CAGR: 9,1% 1.002 420 2005 2015 OPEX CAGR: 4,5% 162 104 2005 2015 EBITDA : 0) CAGR: 10,3% 840 83% 83% 83% 83% i “ 2005 2015 82 years to maturity 100% pay-back in first 10 years Free-tariff revision = 9% CAGR 02-15* * Tariff increase for light Vehicles in
Slide 27: Value creation: EBITDA-GDP-Traffic
Value creation: EBITDA-GDP-Traffic annual % growth 189 EBITDA growth ™ Traffic growth GDP growth (annual) 15,4 15,4 15,6 / \ 14,1 1 \ 14,2 3,2 ! \ | , 126 17 1 \ F \ 10,8 103 I 1 97 97 ' 1 7,5 172 q 6,1 U 5,4 i] 5,5 | 2,9 l 3,4 33 1 15 1,0 1 I 6 6 7 | I ! F = i) ! -05 are \ 1 \ ' \ 2002 2003 2004 20
Slide 28: Appendix
28 » Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Diversified porftolio Historic consolidated & business units figures
Slide 29: Managed Lanes
Managed Lanes New assets landmark “Express Tollway within an Existing Highway” Free Tolled Lanes Free Lanes Speed >5Omph Lanes A solution to congestion on “existing urban corridors” we -- ee ee ee ee ee ee ee ee ee ee ee ee ee ee by means of —————— Active management of “newly added capacity” through
Slide 30: Level of demand
Level of demand NTE (untolled) 407ETR (tolled) Westbound Eastbound € [Peak period > 00.00 200 4.00 600 800 10.00 1200 14.00 16.00 18.00 20.00 22.00 24.00 Time of the day 30 12.00 200 400 600 8.00 10.00 1200 200 400 600 800 10.00 Time of the day 12.00 ferrovial | Investor Relations
Slide 31: Dallas and Fort Worth Regional Map
31 Dallas and Fort Worth Regional Map Managed Lanes regional map 7 Woon © Southiaker fee, | irolton |p A (Bey Springs : pe « FOuton F : B, aw i Kale aD \ i wy Te ok — (6005) Ranchette Wy, 4 tes Estates aD | \GO Heritage % Aldi Dallas/Ft | AUG Worth int'l Na = | 7 | [peel \l Taree - “€ —t F Ss 13: Gr
Slide 32: Toll rate and dynamic tolling
Toll Rate Toll Rate Cap 0.75 0.84 c/mi $/mi Demand threshold 3300 pce/h 2-lane sections Speed Speed Threshold 50 mi/h Demand 12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 Hour starting Analysis by segment and direction Freedom under the cap TOTAL FREEDOM Freedom under the cap
Slide 33: Managed Lanes: North Tarrant Express
Managed Lanes North Tarrant Express Opened on October 2014, 9 months ahead of schedule oi Segment 2 West Zt KEY CHARACTERISTICS DESCRIPTION: Dallas-Fort Worth Metroplex, Major thoroughfares between Fort Worth and DFW Airport LENGTH: 13 mile section (IH 820 & SH 183 in Tarrant County) CONCESSION PERI
Slide 34: Managed Lanes: Lyndon B Johnson
Managed Lanes Lyndon B Johnson Opened on September 102015, 3 months ahead of schedule : Lee KEY CHARACTERISTICS are ’, Reraiaic0 % DESCRIPTION: IH 635 (Dallas County), the most populous county in Texas 44 ‘ Gee LENGTH: 13 mile section of the IH 635 and IH 35E a rx \; os avg, CONCESSION PERIOD: 52 ye
Slide 35: Managed Lanes: North Tarrant Express 35W
Managed Lanes North Tarrant Express 35W Expected to open in mid-2018 DESCRIPTION: LENGTH: CONCESSION PERIOD: TARIFF POLICY: KEY CHARACTERISTICS 2 “managed lanes” in each direction of the IH-35W, segments 3A and 3B (3B segment to be built by TxDOT) 10.2 mile section(segments 3A 6.2 miles and 3B 4 mil
Slide 36: Managed Lanes Financial Overview
Managed Lanes Financial Overview Figures in US Dollars Total Investment: Private Equity: Meridiam: DPFPS: APG: Total Debt: PABs: TIFIA: Public Funds: 36 aa north tarrant express 2.05 bn 21% 426mn 141 mn (33%) 43 mn (10%) 1,048 mn 398 mn 650 mn 573 mn First combination of TIFIA and tax exempt PABs. F
Slide 37: Appendix
37 » Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Diversified porftolio Historic consolidated & business units figures
Slide 38: How does the 407ETR compare to the new Managed Lanes?
How does the 407ETR compare to the new Managed Lanes? 38 Participation: Partners: Concession period: Location: Length: Benefits: Open tolling? Tariff Policy: Regulatory risk? Collection: Dividends: 407ETR 43%. Equity consolidated SNC Lavalin (17%), CPPIB (40%) 99 years Opened 1999 (82 years remainin
Slide 39: Appendix
39 » Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Diversified porftolio Historic consolidated & business units figures
Slide 40: Diversified portfolio
Diversified portfolio € million EX - INFRASTRUCTURE PROJECTS 2015 figures INFRASTRUCTURE PROJECTS Services Construction Toll Roads Airports Non Capital Intensive Capital Intensive PROFIT GENERATION LONG DURATION CASH GENERATION LONG TERM VALUE Fully consolidated Method E B ITDA Proportional (1) €1,0
Slide 41: Appendix
41 » Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Diversified porftolio Historic consolidated & business units figures
Slide 42: 2015 Results
2015 Results € million Revenues EBITDA EBITDA margin Period depreciation EBIT EBIT margin Disposals & Impairments Financial results Equity-accounted affiliates EBT Corporate income tax CONSOLIDATED NET INCOME Discontinued operations Minorities NET INCOME ATTRIBUTED 42 Income Statement 2015 2014 Var
Slide 43: mn € • • 1.20 ,0 % 1.00 ,5 % ,0 % ,5 %
mn € • • 1.20 12 ,0 % 1.00 11 ,5 % 80 0 11 ,0 % 60 0 10 ,5 % 40 0 10 ,0 % 20 0 9,5% 0 9,0% 43
Slide 44: mn € ,0% 9,0% 8,0% 7,0% 6,0% 5,0% 4,0% 15 0 3,0% 10 0
mn € 40 0 10 ,0% 9,0% 35 0 8,0% 30 0 7,0% 25 0 6,0% 20 0 5,0% 4,0% 15 0 3,0% 10 0 2,0% 50 1,0% 0 0,0% 44
Slide 45: mn € ,0 % ,0 % ,0 % 9,0% 8,0% ,0% 20 0 6,0%
mn € 40 0 12 ,0 % 11 ,0 % 35 0 10 ,0 % 30 0 9,0% 8,0% 25 0 7,0% 20 0 6,0% 5,0% 15 0 4,0% 10 0 3,0% 2,0% 50 1,0% 0 0,0% 45
Slide 46: mn €
mn € 82 130 119 108 45 45 83 30 48 20 14 15 17 36 21 27 46
Slide 47: Airports figures: 2011-2015
Airports figures: 2011-2015 Portfolio Heathrow Heathrow 025% stake) *AGS (50% stake) Heathrow shareholders 2 runways Aberdeen 82 Countries Southampton 80 Airlines Ferrovial Qatar Brittania GIC Alinda CIC USS Dividends received from airports Capital expenditure (mf) mn € 341 1.283 1.141 219 844 853 1
Slide 48: Disclaimer
Disclaimer 48 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 regar