Ferrovial N.v. · BME:FER
Ferrovial — Investor Day (2017)
79 slides from Ferrovial's investor day presentation, 2017
Slide 1: Investor Day 2017
INVESTOR DAY 2017 cintra
Slide 2: Module 2: Current Portfolio
MODULE 2 CURRENT PORTFOLIO
Slide 3: Current Portfolio - 407 ETR
CURRENT PORTFOLIO - 407 ETR JOSE ANGEL TAMARIZ - ANDRES SACRISTAN RICARDO SANCHEZ - CARLOS RAMIREZ ia \vn - , | l | * J . Me ~ Le ae Pt > * ie ‘ ti mod, y } We nN “s tg ; ha oe be — 4) i ee f ‘ cintra : “ qe a oN re
Slide 4: Index: Current Portfolio - 407 ETR
Investor Day 2017 INDEX CURRENT PORTFOLIO - 407 ETR 1 - Introduction 2 - Reasons for 407 ETR’s success 3 - Management levers 4 - Potential value creation cintra -85-
Slide 5: Introduction
“| | INTRODUCTION Investor Day 2017
Slide 6: 407 ETR has had an outstanding performance during its 16 years of operation
INTRODUCTION 407 ETR HAS HAD AN OUTSTANDING PERFORMANCE DURING IT'S 16 YEARS OF OPERATION €309 M» €1,709 Me €7,723 M° Original equity Dividends paid to date Value 2016 (Consensus) invested ea 6x 25x /12/2016 = 1.41849 EUR/CAD; Cintra share: 43.23%; FER Shares = 732.5 M structures, SE. -87- Investor
Slide 7: Introduction: Key indicators, historic evolution
INTRODUCTION KEY INDICATORS: HISTORIC EVOLUTION Trips (work daily average) 308,870 408,239 2.01% VKTs (thousands per year) 1,806,053 2,640,770 2.75% Weighted toll rate (CAD / km) 0.12 0.31 7.01% REVENUES (M CAD) 311 1,135 9.69% EBITDA (M CAD) 208 985 11.77% DIVIDENDS (M CAD) 57.8 790 20.53% THIS HAS
Slide 8: Reasons for 407 ETR's Success
2 REASONS FOR 407 ETR’S SUCCESS Investor Day 2017
Slide 9: Reasons for 407 ETR's Success
REASONS FOR 407 ETR’S SUCCESS STRATEGICALLY LOCATED IN A LARGE, AFFLUENT CATCHMENT AREA WITH HIGHLY CONGESTED ALTERNATIVE ROUTES - Greater Toronto Area (GTA) population estimated at 6.5M in 2016 - GTA is Canada's principal economic hub - Major routes that compete with the 407 ETR are highly congeste
Slide 10: Reasons for 407 ETR's Success
REASONS FOR 407 ETR’S SUCCESS EFFICIENT FINANCIAL STRUCTURE WITH PROVEN ACCESS TO FINANCIAL MARKETS - Strong corporate credit ratings from S&P and DBRS: Senior A, Junior A’, Subordinated BBB - Proven ability to access capital markets in even the most challenging market conditions - Long term and eve
Slide 11: Reasons for 407 ETR's Success
REASONS FOR 407 ETR’S SUCCESS - Perfect location - Excellent prospects for business growth | | . | © ————s|.sGTA POPULATION 1996 ; | / 4.5 Million POPULATION & EMPLOYMENT MEGAZONES fee gnated by municipalities ac -92-
Slide 12: Reasons for 407 ETR's Success
REASONS FOR 407 ETR’S SUCCESS - Perfect location - Excellent prospects for business growth ¢ GTA POPULATION \ 6.5 Million ait ETR EXTENSION 401: 80% of corridor traffic Avg PK hour speed in 401: 20 Kph POPULATION AREA URBANIZED 21. BETWEEN 2006 AND 2016 EMPLOYMENT MEGAZONES - 93 -
Slide 13: Reasons for 407 ETR's Success
REASONS FOR 407 ETR’S SUCCESS 401 THE COUNTER INTUITIVE BEAUTY OF A TOLL ROAD IN A HIGHLY CONGESTED CORRIDOR 407 ETR 1- During Periods of economic growth: - REVENUE GROWS MASSIVELY 2=During- RECESSIONARY Periods: - REVENUE BARELY SUFFERS, OR GROWS =94 -
Slide 14: During the 2012-2016 expansion period
REASONS FOR 407 ETR’S SUCCESS DURING THE 2012-2016 EXPANSION PERIOD 0.8% 3% 4x | WHAT Corridor Traffic growth (cagr) 407 ETR Traffic growth (cagr) HAPPENED? 9% 12% 15x 407 ETR Toll rates (cagr) 407 ETR Revenue (cagr) DID 407 ETR CAPTURE THE 407 ETR CARRIES A MAJORITY OF CORRIDOR ALTERNATIVE ROAD IS
Slide 15: During the 2007-2010 recessionary period
REASONS FOR 407 ETR’S SUCCESS | DURING THE 2007-2010 RECESSIONARY PERIOD 6% 6% 407 ETR Toll rates (cagr) 407 ETR Revenue (cagr) - 0.1% | 1% Corridor Traffic growth (cagr) 407 ETR Traffic growth (cagr) WHY? CORRIDOR TRAFFIC DECREASED, BUT 407 ETR GREW ROAD WITH NO CAPACITY RESTRICTION 4 a —S Capacity
Slide 16: During the 2007-2010 recessionary period
REASONS FOR 407 ETR’S SUCCESS | DURING THE 2007-2010 RECESSIONARY PERIOD - 0.1% 1% 6% 6% Corridor Traffic growth (cagr) 407 ETR Traffic growth (cagr) 407 ETR Toll rates (cagr) 407 ETR Revenue (cagr) WHY? CORRIDOR TRAFFIC DECREASED, BUT 407 ETR GREW DEMAND ADAPTED TO CAPACITY RESTRICTION: ACTUAL TRAF
Slide 17: During the 2007-2010 recessionary period
REASONS FOR 407 ETR’S SUCCESS DURING THE 2007-2010 RECESSIONARY PERIOD 1% 6% 407 ETR Traffic growth (cagr) 407 ETR Toll rates (cagr) 6% 407 ETR Revenue (cagr) - 0.1% Corridor Traffic growth (cagr) WHY? CORRIDOR TRAFFIC DECREASED, BUT 407 ETR GREW DEMAND ADAPTED TO CAPACITY RESTRICTION: ACTUAL TRAFFI
Slide 18: During the 2007-2010 recessionary period
REASONS FOR 407 ETR’S SUCCESS | DURING THE 2007-2010 RECESSIONARY PERIOD | - 0.1% 1% | 6% 6% Corridor Traffic growth (cagr) 407 ETR Traffic growth (cagr) 407 ETR Toll rates (cagr) 407 ETR Revenue (cagr) WHY? CORRIDOR TRAFFIC DECREASED, BUT 407 ETR GREW ECONOMIC DOWNTURN NEGATIVELY IMPACT DEMAND | Ca
Slide 19: During the 2007-2010 recessionary period
REASONS FOR 407 ETR’S SUCCESS | DURING THE 2007-2010 RECESSIONARY PERIOD 6% | 6% 407 ETR Toll rates (cagr) 407 ETR Revenue (cagr) | - 0.1% 1% Corridor Traffic growth (cagr) 407 ETR Traffic growth (cagr) WHY? | CORRIDOR TRAFFIC DECREASED, BUT 407 ETR GREW ECONOMIC DOWNTURN NEGATIVELY IMPACT DEMAND 4
Slide 20: During the 2007-2010 recessionary period
REASONS FOR 407 ETR’S SUCCESS | DURING THE 2007-2010 RECESSIONARY PERIOD - 0.1% 1% 6% 6% Corridor Traffic growth (cagr) 407 ETR Traffic growth (cagr) 407 ETR Toll rates (cagr) 407 ETR Revenue (cagr) WHY? CORRIDOR TRAFFIC DECREASED, BUT 407 ETR GREW 407 ETR TOLL RATES STILL FAR FROM OPTIMAL LEVELS EV
Slide 21: The Future: Regional Economic Prospects
THE FUTURE: REGIONAL ECONOMIC PROSPECTS Greater Toronto Area prospects to 2040: - 2.7M additional population (1.4% cagr) - 1.2M new jobs (1.2% cagr) - 2.1% annual real GDP growth - Growth concentrated in areas close to 407 ETR HEALTHY ECONOMIC AND DEMOGRAPHIC GROWTH IN THE 407 ETR REGION (7 Populati
Slide 22: The Future: Revenue Upsides
THE FUTURE: REVENUE UPSIDES ON TOP OF ALL THIS, THERE ARE STILL UPSIDES ON THE 407 ETR REVENUES MEDIUM TERM (2025-2040) LONG TERM (Post 2040) Sources: Cintra Infraestructures, SE. Existing Toll Rates far from providing the optimum revenue - Shown by traffic growth of 2% in spite of toll rate increas
Slide 23: Management Levers
Investor Day 2017
Slide 24: Management Levers
Investor Day 2017 cintra MANAGEMENT LEVERS 1 PRICING ABILITY Big Data developments enable a more effective and smooth path to optimal pricing EXCELLENCE IN CUSTOMER SERVICE 2 Exceeding customer expectations and avoiding customer pain points is a must to clear the path to optimum revenue 3 CAPACITY I
Slide 25: Management Levers: Pricing Ability
MANAGEMENT LEVERS: PRICING ABILITY BIG DATA WILL ALLOW US TO REACH OPTIMAL REVENUE FASTER AND WITH LESS UNCERTAINTY NEW TOOLS FOR BETTER PRICING | | WHAT TO EXPECT FOR FUTURE TOLL RATES STRUCTURE? - 407 ETR uses highly detailed, vast proprietary - Further segmentation of general toll rates data sets
Slide 26: Management Levers: Customer Service (I)
MANAGEMENT LEVERS: CUSTOMER SERVICE (1) HIGH VOLUME OPERATION WITH TOP NOTCH SERVICE LEVEL IS MANAGED EFFICIENTLY IN ORDER TO OBTAIN EXCELLENT CUSTOMER SATISFACTION AND CLEAR THE PATH TO REACH OPTIMAL TOLL RATES HIGH VOLUME 407 ETR Bell © ROGERS 2.5M customer requests in 2016 2.8M 2.3M 400K L Cable
Slide 27: Management Levers: Customer Service (II)
MANAGEMENT LEVERS: CUSTOMER SERVICE (II) HIGH VOLUME OPERATION WITH TOP NOTCH SERVICE LEVEL IS MANAGED EFFICIENTLY IN ORDER TO OBTAIN EXCELLENT CUSTOMER SATISFACTION AND CLEAR THE PATH TO REACH OPTIMAL TOLL RATES HIGHEST QUALITY STANDARDS | 407 ETR POLICY IS TO EXCEED CUSTOMER EXPECTATIONS 22" 83% 4
Slide 28: Management Levers: Customer Service (III)
MANAGEMENT LEVERS: CUSTOMER SERVICE (III) HIGH VOLUME OPERATION WITH TOP NOTCH SERVICE LEVEL IS MANAGED EFFICIENTLY IN ORDER TO OBTAIN EXCELLENT CUSTOMER SATISFACTION AND CLEAR THE PATH TO REACH OPTIMAL TOLL RATES EFFICIENTLY MANAGED 407 ETR PURSUES COST EFFICIENCY, INVESTING IN TECHNOLOGY - TRACKIN
Slide 29: Management Levers: Customer Service (IV)
MANAGEMENT LEVERS: CUSTOMER SERVICE (IV) HIGH VOLUME OPERATION WITH TOP NOTCH SERVICE LEVEL IS MANAGED EFFICIENTLY IN ORDER TO OBTAIN EXCELLENT CUSTOMER SATISFACTION & CLEAR THE PATH TO REACH OPTIMAL TOLL RATES ALL THIS PAYS OFF IN CUSTOMER SATIFACTION & COST DISCIPLINE HIGH LEVELS OF CUSTOMER SATIS
Slide 30: Management Levers: Capacity Growth
MANAGEMENT LEVERS: CAPACITY GROWTH 221 LANE-KM OPENED SINCE ACQUISITION - Since 1999 49 km were extended - Since 1999 407ETR spent $1.3 B in capacity increases allowing traffic flows at 100 kph at all times AM Peak hour lever of service (LOS) AM Peak hour lever of service (LOS) Average weekday - May
Slide 31: Potential Value Creation
A POTENTIAL VALUE. CREATION Investor Day 2017
Slide 32: Potential Value Creation
POTENTIAL VALUE CREATION TWO STRONG FEATURES - Long remaining concession term: 82 years - Highly back-ended CF stream profile: Rev CAGR 4% DE-RISKING AND ROLLING FORWARD MARKET EQUITY ‘VALUE (EM) HIGH VALUE CREATION POTENTIAL 44,782 / 462% — “24.0€/sh" 4832 / 411% -~[17.5e/she 4,782 REELS sae - 1,45
Slide 33: Conclusions
CONCLUSIONS “ fa. | + Strong fundamentals give 407 ETR a unique feature: - Massive growth during positive economic cycles - Modest growth during recessions - Toll rates are far from optimal - Clearing the path to optimal revenue requires: 4 - Pricing sophistication using big data sources and techniq
Slide 34: Managed Lanes
Slide 35: Index: Managed Lanes
INDEX MANAGED LANES 1. What are Managed Lanes? 2. Where are we now? 3. How do we see the future? 4. Managed Lanes value creation 5. Cintra management skills levers 6. What have we learned for the future? 7. Asuccess story for everyone -T16- Investor Day 2017 cintra
Slide 36: What are Managed Lanes?
1 | WHAT ARE'MANAGED LANES? Investor Day 2017
Slide 37: What are Managed Lanes?
WHAT ARE MANAGED LANES? A SOLUTION TO CONGESTED URBAN CORRIDORS ADDING CONGESTION FREE CAPACITY MANAGED THROUGH DYNAMIC PRICING CINTRA'S ML PROJECTS F Providence ince ML Projects Equity commited Project Phase NTE 184 Operations - Solves the congestion problem in the long term LBJ 263 Operations A ah
Slide 38: Where are we now?
WHERE ARE WE NOW? Investor Day 2017 REVENUE EXPECTATIONS EXCEEDED DESPITE THE GREAT RECESSION (therefore better traffic conditions in the toll free lanes) BY THE END OF 2016 WE HAD $150M IN REVENUES COMBINED... X Traffic corridor 10 to 15% lower than expected at opening ‘~ Capture rates up to 15% hi
Slide 39: Volumes in ML vs speed in free lanes
VOLUMES IN ML vs SPEED IN FREE LANES 100 3000 2250 eS i = 7 = } = a 1500 8 5 : g @ ; $ é 750 0 12a 3a 6a 9a 12p 3p ee s Bi Hourly ratfic — Speed in fee lanes Time of Day ‘Sources: NTE Mobility Partners - 120 -
Slide 40: How do we see the future?
2| HOW DO WE SEE THE FUTURE? Investor Day 2017
Slide 41: DFW expectations for the next years
DFW EXPECTATIONS FOR THE NEXT 10 YEARS ferrovial GOOD ECONOMIC GROWTH PROSPECTS AND AN EXPANDING TRANSPORTATION NETWORK WILL HELP ENSURE MANAGED LANE PROJECTS FUTURE SUCCESS ECONOMIC GROWTH FORECAST - Regional GDP expected to grow at 3% to 2020, national GDP is forecasted at 2% - By 2027, the popula
Slide 42: DFW capacity improvements by 2026
DFW CAPACITY IMPROVEMENTS BY 2026 2016 UNDER CONSTRUCTION NETWORK IN 2026 Sources: NCTCOG - 120 -
Slide 43: How does 2021 look?
HOW DOES 2021 LOOK? MEETING END OF RAMP UP EXPECTATIONS WITH CURRENT TRENDS —— $311M expEcTED COMBINED REVENUES ——— Corridor demand Proportion of to grow at corridor growth Annual toll rate 0, to be captured: increases ai 35% 7-8% per year WHY ARE WE CONFIDENT WE WILL MEET EXPECTATIONS? VY V Vv Expe
Slide 44: NTE tolls vs traffic
NTE TOLLS vs TRAFFIC —— TRAFFIC - 425 -
Slide 45: Looking ahead to 2026
LOOKING AHEAD TO 2026 REVENUES WILL CONTINUE TO GROW, DRIVEN BY: INCREASED CORRIDOR CONGESTION, GROWTH IN WILLINGNESS TO PAY & HIGHER TOLLS $458M EXPECTED COMBINED REVENUES IN 2026 Investor Day 2017 Corridor . growth at pen Annual toll rate increases 2% 40% 3.4% eryear of corridor (3 pery! growth WH
Slide 46: Managed Lanes Value Creation
3 | MANAGED-EANES VALUE CREATION ; a y “a a ~~
Slide 47: Dallas NTE & LBJ Potential Value Creation
DALLAS NTE & LBJ POTENTIAL VALUE CREATION AT PRESENT: - Equity Committed (100% injected): €447M - Currently expected Equity IRR: c. 13,5% - Equity Value (market consensus): €1,047M (2.3x Equity) UPSIDE: IN 10 YEARS TIME €1,324M / +126% 5.5€ / Sh* MARKET EQUITY €559M. VALUE (€M) €1,639M / +157% 3.7€/
Slide 48: Cintra US Managed Lanes Potential Value Creation
CINTRA US MANAGED LANES POTENTIAL VALUE CREATION sat THREE STRONG FEATURES: - High currently expected Equity IRRs: 13% - 16% HIGH CAPACITY TO CREATE VALUE VIA - Long remaining concession periods: 44 - 52 years DE-RISKING & ROLLING FORWARD - Highly back-ended CF stream profiles: Rev CAGR 6% - 8% MARK
Slide 49: Cintra US Managed Lanes Potential Value Creation
CINTRA US MANAGED LANES fefrovi Investor Day 2017 POTENTIAL VALUE CREATION — IN 10 YEARS cr exrecteD CF’s ARE MET Equity Share price Dividends value Increase impact* paid +€6.6B €11 /share €2.0B 5.5 x Equity 1.5 x Equity —— IN 20 YEARS cr expectep CF’s ARE MET Equity Share price Dividends value Incr
Slide 50: Cintra Management Levers
4 CINTRA MANAGEMENT LEVERS
Slide 51: Cintra Management Levers
CINTRA MANAGEMENT LEVERS Investor Day 2017 OPERATIONS & CUSTOMER MANAGEMENT IS KEY TO THE SUCCESS OF THE PROJECTS 1 - ACTIVE REVENUE MANAGEMENT - Allowing us to increase the value of the concession 2 - OUTSTANDING CUSTOMER SERVICE - Exceeding customer expectations is key to optimal pricing cintra =
Slide 52: Active Revenue Management: Connectivity Improvements
CINTRA MANAGEMENT LEVERS 1 - ACTIVE REVENUE MANAGEMENT: A) CONNECTIVITY IMPROVEMENTS - Improvement of access points added to the roads - Additional entrance/exit on NTE to increase in-scope traffic - 133'- ferrovial Investor Day 2017 cintra
Slide 53: Active Revenue Management: Toll Setting Approach
CINTRA MANAGEMENT LEVERS 1 - ACTIVE REVENUE MANAGEMENT: B) TOLL SETTING APPROACH - Developed proprietary toll setting algorithm - Takes into account conditions in both ML and free lanes to react better to traffic changes C) SERVICE DIFFERENTIAL - Promote a higher speed limit in ML versus free lanes
Slide 54: Outstanding Customer Service
CINTRA MANAGEMENT LEVERS ferrovial 2 - OUTSTANDING CUSTOMER SERVICE A) CUSTOMERS SATISFACTION With 75% 1,200 of users rate <5 ' calls a complaints per and more than Managed Lanes Favorability month 800,000 - O, or more users per month 80 Yo Time savings and convenience fe} B) INTERNAL POLICIES 85 %o
Slide 55: Customer testimonial
ll best thing THANK YOU @lbjespress SAVED ME 30 min ATLEAST.
Slide 56: What have we learned to generate future value?
5 WHAT HAVE WE LEARNED TO GENERATE FUTURE VALUE? Investor Day 2017
Slide 57: What have we learned to generate future value?
WHAT HAVE WE LEARNED TO GENERATE FUTURE VALUE? Willingness to:pay much higher than forecasted Higher rates Users value other aspects of MLs apart from travel time savings Revenues off-peak Connectivity is key to maximize capture rates Capture rates by ramp Customer sub-segments within heavy traffic
Slide 58: A success story for everyone
6 A SUCCESS STORY FOR EVERYONE Investor Day 2017
Slide 59: A success story for everyone
A SUCCESS STORY FOR EVERYONE ferrovial Investor Day 2017. FOR CINTRA: - Exceeding expectations despite the recession - Well positioned to meet long term forecasts - Validates Cintra’s vision of the value creation potential of ML - Acquiring valuable knowledge to develop competitive advantage FOR USE
Slide 60: Lessons Learned
LESSONS LEARNED NICOLAS RUBIO
Slide 61: Index: Lessons Learned
ferrovial Investor Day 2017 INDEX LESSONS LEARNED 1- Key considerations 2- Avoidable mistakes & mitigation strategies 3- Case studies - Indiana Toll Road - SH130 - R4-AP36 cintra -142 -
Slide 62: Key Considerations
1 | KEY CONSIDERATIONS Investor Day 2017 l
Slide 63: Key Considerations
KEY CONSIDERATIONS A NECESSARY COST OF DOING BUSINESS - Openly competing for complex traffic-risk projects sets an incentive to factor P50 scenarios - Successful forecasts at bidding imply some over-and some under-performing projects NOT ALL FAILED INVESTMENTS ARE UNAVOIDABLE - Key uncertainty eleme
Slide 64: Avoidable Mistakes & Mitigation Strategies
2 | AVOIDABLE MISTAKES & MITIGATION STRATEGIES
Slide 65: Avoidable Mistakes & Mitigation Strategies
AVOIDABLE MISTAKES & MITIGATION STRATEGIES OVERESTIMATION OF CASH-FLOWS - Undetected estimation bias => The nature of the developer plays a key role in tackling bias - Incomplete or inaccurate information => Accuracy depends on technology, experience, cost and time UNDERESTIMATION OF RISKS (EQUITY I
Slide 66: Case Studies
3 | GASE-STUDIES Investor Day 2017
Slide 67: Indiana Toll Road
BACKGROUND: Equity 2005 Bid Equity invested: $380M Equity lost: $301M (-79%) Struggled through the great recession INDIANA TOLL ROAD WEAKNESSES & LESSONS LEARNED ] BADLY STRUCTURED DEBT: - Short tenor (9 years): Refinancing risk - High leverage: 84% ($4.0 Bn debt). - Extra leverage through a step-up
Slide 68: SH130
BACKGROUND: 2005 Bid Equity invested: $215M; 100 ting technologies available $SH130 WEAKNESSES & LESSONS LEARNED HIGH BID PRICE DUE TO PROJECT IRR UNDERESTIMATION (PROJECT RISKS NOT PROPERLY ADDRESSED) BADLY STRUCTURED DEBT: - High leverage: 85% ($1.2Bn debt) - Extra leverage through an IRS: Value o
Slide 69: R4 and AP36
BACKGROUND: 2000-2005 Bids Total equity in and €51M (OL! R4 AND AP36 WEAKNESSES & LESSONS LEARNED BADLY STRUCTURED DEBT: - Short tenor (6-8 years): Refinancing risk - High leverage (only in OLR): 82% (€466M debt raised) HIGH BID PRICES DUE TO PROJECT IRR UNDERESTIMATION (PROJECT RISKS NOT PROPERLY A
Slide 70: Cintra Portfolio: Past Performance & Future Expectations
AS CINTRA PORTFOLIO: PAST PERFORMANCE & FUTURE EXPECTATIONS CARLOS RAMIREZ = m,n ae : ‘ f= ond? a a y. r bal ~ 4 } - / ; | F . —ee\') Ga Ss errovial = Investor Day2017— aw? | cintra
Slide 71: Index: Cintra Portfolio
Investor Day20i7 INDEX CINTRA PORTFOLIO: PAST PERFORMANCE & FUTURE EXPECTATIONS 1 - How has Cintra invested its shareholders’ money? - What return (IRR) has produced? 2 - How is Cintra’s investment record ex 407 ETR? 3 - The Future -What can we expect? cintra - 182'-
Slide 72: How has Cintra invested its shareholders' money?
1 HOW HAS CINTRA INVESTED ITS SHAREHOLDERS’ MONEY? Investor Day 2017
Slide 73: How has Cintra invested its shareholders' money?
HOW HAS CINTRA INVESTED ITS SHAREHOLDERS MONEY? €3.8B €5.8B 15%” (1. 5x) (10% already earned () Equity invested Dividends paid IRR with CF’s till (1998-2016) () to date #) maturity Cintra currently has an expected IRR of 15% in spite of: ~~ Failed investments Pragmatic divestments - The greatest un-
Slide 74: How is Cintra investment record ex 407 ETR?
2 HOW IS CINTRA INVESTMENT RECORD EX 407 ETR? Investor Day 2017
Slide 75: How is Cintra investment record ex 407 ETR?
HOW IS CINTRA INVESTMENT RECORD EX 407 ETR? «GOOD TO VERY GOOD €3.3B €3.0B (0.9x) 10%” Equity invested Dividends paid IRR ex 407 ETR with ex 407 ETR\) ex 407 ETR @ CFs till maturity Cintra currently has an expected IRR of 10% ex 407 ETR + 2.5% Ferrovial M&A transactions ON TOP OF THAT: Highway conce
Slide 76: How is Cintra investment record ex 407 ETR?
HOW IS CINTRA INVESTMENT RECORD EX 407 ETR? WHY ISIT SO GO Performing Projects (IRR > 8%) Under Performing Projects (Nom. Eq. Rec.) Failed investments (Nom.Eq. NOT rec.) OD? Concessions Euroscut Azores Greek Highways Serrano Park 8 projects: 10 projects: istas A-66 Europistas (Eurovias) 407 EXT Auso
Slide 77: The Future
3 | THE FUTURE
Slide 78: The Future: What can we expect? (10 years)
THE FUTURE WHAT CAN WE EXPECT? MaRKeT EQUITY VALUE (€M) +12,933 ME / +135% €30.1 / Fer sh? ... If currently expected CF’s are met ... No CF over performance of Cintra Base Case expectations ... No additions to the current portfolio concession assets 6,311 ©93.1€ / Fer sh? |) ee In 10 years: Avail. p
Slide 79: The Future: What can we expect? (20 years)
THE FUTURE WHAT CAN WE EXPECT? aerials LI: VALUE (€M) €+22,518 M / +235% €43,8 / Fer sh? 11,136 In 20 years: VALUE MAY 113.16 / Fer sh! BE TRIPLED 11,383 Equity Value Share Price Dividends Increase Impact’? Paid @ + €22B + €30 p/share + €11.6B (3.3x) 2016 Rolling De-risking? 2036 Market Forward Cint