Ferrovial N.v. · BME:FER
Ferrovial — FY2014 Earnings Presentation
34 slides from Ferrovial's earnings presentation, February 2015
Slide 1: Ferrovial FY 2014: Investing for Growth
ferrovial FY 2014 Investing for Growth 1
Slide 2: Ferrovial Overview & Strategy
Ferrovial Overview & Strategy 2
Slide 3: What is Ferrovial?
What is Ferrovial? Construction Services DESIGN & CONSTRUCTION MAINTENANCE EX-INFRASTRUCTURE PROJECTS INFRASTRUCTURE PROJECTS OPERATION Toll roads Airports Design, Financing, Construction, Operation & Maintenance of infrastructure assets & Provider of services to cities STRATEGY 1. CF Generation 2.
Slide 4: 1. Cash Flow Generation
1. Cash Flow Generation € million 2014 figures € 349mn EX-INFRASTRUCTURE EBITDA from Construction PROJECTS Net cash position € 387mn EBITDA from Services Non capital intensive / Backlog visibility / EPS accretive PARENT COMPANY Controlling Shareholder 43% Free float 57% € 341mn Dividends from Airpor
Slide 5: 1. Cash Flow Generation: sources and uses
1. Cash Flow Generation: sources and uses € million 2014 figures Sources & Uses BALANCED CONTRIBUTION OPERATING CASH FLOW 2014 Construction 236 Construction Services 302 21% 31% Toll Roads (dividends) 255 Service Airports (dividends) 341 26% Toll Roads 22% Taxes & Other (58) Airports TOTAL 1,076 c70
Slide 6: 2. Profitable growth. Solid Financial Situation
2. Profitable growth. Solid Financial Situation € million 2014 figures EX–INFRASTRUCTURE PROJECTS Net debt evolution ex-infrastructure projects €mn 1,484 1,663 1.632 907 NET CASH 31 €1,632mn 1,172 1,547 1,987 3,064 2006 2007 2008 2009 2010 2011 2012 2013 2014 PARENT COMPANY INFRASTRUCTURE PROJECTS D
Slide 7: 3. Shareholder remuneration (CF Criteria)
3. Shareholder remuneration (CF Criteria) € per share € million 2014 Evolution Scrip dividend equiv to 2013 complem dividend (Jul’14) 0.291 Strong growth in shareholder remuneration Scrip dividend equiv to 2014 interim dividend (Nov’14) 0.381 TOTAL dividend paid in 2014 0.672 Share buyback: €235mn 9
Slide 8: Ferrovial today: 2014 Results
Ferrovial today: 2014 Results 8
Slide 9: Toll roads
Toll roads € million 2014 figures 2014 % €255mn dividends from projects Revenues 432 +0.6% ETR €224mn, other assets €31mn EBITDA 257 -7% Traffic growth across our portfolio Canada, US & Europe (Ireland, Portugal and Spain) NTE Managed Lanes opening Traffic evolution 4th Oct (9 months ahead of
Slide 10: 407ETR and NTE
407ETR NTE CAD million USD 2014 figures 407-ETR NTE 1-2 Texas Equity method, Ferrovial stake 43% 56.7% Global consolidation Traffic & EBITDA above expectations Traffic in line with expectations so far Dividend up by +7% Double digit growth in monthly revenues Revenues +11% Promotional tari
Slide 11: Services
Services € million 2014 figures 2014 % € 302mn operating cash flow (OCF) Revenues 4,401 +20% EBITDA 387 +21% Largest division by revenues, EBITDA, OCF EBITDA % 8.8% = Strong growth in Spain & UK Backlog 22,369 +20% Combined organic growth +8.7% Enterprise integration completed Performance by
Slide 12: Construction
Construction € million 2014 figures 2014 % €236mn operation cash flow (OCF) Revenues 3,942 -3% Improved profitability EBITDA 349 +2% Driven by Budimex (Poland) and Webber (US) EBITDA % 8.8% +40bp Strong growth in Poland Backlog 8,091 +2.9% Backlog +41% Operating cash flow 298 304 236 100 2011
Slide 13: HAH (Equity method, Ferrovial stake 25.0%)
HAH (Equity method, FERROVIAL stake 25.0%) 100% GBP million 2014 figures 2014 % GBP1bn dividend to shareholders Revenues 2,692 +9% (GBP670mn following AGS divestiture) EBITDA 1,541 +13%* Heathrow T2 opened June 4th (c.350 flights per day) EBITDA % 57.2% +180pb Net debt 12,978 +2.3% Heathrow ca
Slide 14: Thank you
Thank you Ferrovial Investor Relations 14 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Slide 15: Appendix: Introduction to 407ETR Toll road
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 15
Slide 16: 407 ETR location
407 ETR Location Area of expansion 407 East extension High density population area Ring road of Toronto 108 km 407 16
Slide 17: All Electronic Roadside Tolling System
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 18: 407 ETR: Fast, Safe, Reliable
407Fast ETR Safe R eliable LOCATION HIGH HOUSEHOLD INCOME Greater Toronto Area 46% higher 23% of Canada population than Canada average SPEED NO REGULATORY REVIEWS Alternatives routes 40kph vs 100kph at 407 During concession life (99 years) TRAFFIC TOLL RATE HIGH FLEXIBILITY Alternatives routes Inclu
Slide 19: Cash flow and valuation overview
407 ETR Cash flow and valuation overview Cash Generation Valuation 407 ETR (1999-2014) (100%) € million € million Initial equity investment (62%) (326mn) 100% pay-back 11.069 Dividends (00 - 14) 1,275mn in first 10 years 21x 10% disposal 640mn NET CASH IN 1,589mn Valuation x21 525 1999 Dec'14 Maturi
Slide 20: Financial overview ($CAD million)
407 ETR Financial overview ($CAD million) Revenues Capital Expenditure 888 CAGR: 8.7% 97 90 88 77 72 70 74 420 55 49 83 years to maturity 38 2005 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 OPEX Dividends 730 CAGR: 4.3% 680 152 600 460 104 100% pay-back in first 10 years 300 190 145 120 1
Slide 21: Appendix: Managed Lanes Toll roads
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 21
Slide 22: Express Tollway within an Existing Highway
Managed Lanes New assets landmark “Express Tollway within an Existing Highway” Free Tolled Lanes Free Lanes Speed >50mph Lanes A solution to congestion on “existing urban corridors” by means of Active management of “newly added capacity” through tolling 22
Slide 23: Level of demand
Managed Lanes Level of demand NTE (untolled) 407ETR (tolled) Peak period Westbound Eastbound 00.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 12.00 2.00 4.00 6.00 8.00 10.00 12.00 2.00 4.00 6.00 8.00 10.00 12.00 Time of the day Time of the day 23
Slide 24: Paying for predictability
Paying for predictability Travel time variability 70 60 50 40 Time (min) Time (min) 30 Free Flow Travel Mean 20 10 0 NB AM NB MD NB PM SB AM SB MD SB PM NB - North bound SB - South bound • Free flow time of 14 minutes at 6.00am • The average travel time during all time periods is significantly highe
Slide 25: Toll rates – tariff threshold
Toll rates – tariff threshold Tariff threshold Toll Rate Toll Rate Cap 0.75 c/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
Slide 26: Dallas and Fort Worth Regional Map
Dallas and Fort Worth Regional Map Managed Lanes regional map LBJ NTE 1-2 NTE 35W 26
Slide 27: North Tarrant Express
Managed Lanes North Tarrant Express Opened on October 4th, 9 months ahead of schedule 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 PERIOD: 52 years TARIFF PO
Slide 28: Lyndon B Johnson
Managed Lanes Lyndon B Johnson Construction expected to be concluded in 2015 Key characteristics DESCRIPTION: IH 635 (Dallas County), the most populous county in Texas LENGTH: 13 mile section of the IH 635 and IH 35E 108Km Electronic toll CONCESSION PERIOD: 52 years TARIFF POLICY: Open Road Tolling
Slide 29: North Tarrant Express 35W
Managed Lanes North Tarrant Express 35W Expected to open in mid-2018 Key characteristics DESCRIPTION: 2 “managed lanes” in each direction of the IH-35W, segments 3A and 3B (3B segment to be built by TxDOT) LENGTH: 10.2 mile section (segments 3A 6.2 miles and 3B 4 miles) CONCESSION PERIOD: 48 years T
Slide 30: Managed Lanes Financial Overview
Managed Lanes Financial Overview Figures in US Dollars Total Investment: 2.10 bn 2.80 bn 1.41 bn Private Equity: 21% 427 m 24% 672 m 31% 430 m Cintra: 243 m (57%) 343 m (51%) 216 m (50%) Meridiam: 141 m (33%) 285 m (42%) 60 m (14%) DPFPS: 43 m (10%) 44 m (7%) 43 m (10%) APG: 112 m (26%) Total Debt:
Slide 31: Ferrovial today: 2014 Results
Ferrovial today: 2014 Results 31
Slide 32: FY 2014 Results
FY 2014 Results € million Income Statement Revenues FY’14 JUN’14 FY’13 Var% LfL% FY´14 FY´13 VAR.% LfL% 8,802 7.8% Construction 3,942 4,064 -3.0 -1.0 Revenues 8,166 7.2% Airports 9 8 12.7 12.7 EBITDA 983 934 5.2% 3.5% Toll Roads 432 429 0.6 0.5 Services 4,401 3,656 20.4 16.5 EBITDA margin 11.2% 11.4
Slide 33: Diversified portfolio EBITDA
Diversified portfolio € million 2014 figures Ex – Infrastructure Projects Infrastructure Projects Services Construction Toll Roads Airports Non Capital Intensive Capital Intensive PROFIT GENERATION LONG DURATION CASH GENERATION LONG TERM VALUE Fully consolidated Method Proportional (1) €983Mn EBITDA
Slide 34: 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