Ferrovial N.v. · BME:FER
Ferrovial — Shareholder Meeting (May 2016)
119 slides from Ferrovial's shareholder meeting presentation, May 4, 2016
Slide 1: Shareholders' Meeting
stan uitai VATE — —_ v- ‘SHAREHOLD MEETI es
Slide 2: Rafael del Pino, Chairman
RAFAEL DEL PINO CHAIRMAN
Slide 3: Shareholders' Meeting
stan uitai VATE — —_ v- ‘SHAREHOLD MEETI es
Slide 4: Santiago Ortiz Vaamonde, Board Secretary
SANTIAGO ORTIZ VAAMONDE BOARD SECRETARY
Slide 5: Shareholders' Meeting
stan uitai VATE — —_ v- ‘SHAREHOLD MEETI es
Slide 6: Agenda
AGENDA
Slide 7: Agenda
MATTERS SUBMITTED FOR APPROVAL 1 Approval of financial statements 2 Application of income 3 Discharge of the Board of Directors 4 Re-appointment of auditors 5 Re-appointment, ratification and appointment of Directors 6 Capital increase through the issuance of ordinary shares 7 Second capital increase
Slide 8: Agenda
9 Amendment of the Bylaws 10 Approval of the Director remuneration policy 11 Participation by Executive Directors in the plan enabling them to collect part of the remuneration in shares 12 Delegation of powers to the Board and the Executive Committee to execute Meeting resolutions AGENDA
Slide 9: Agenda
MATTERS FOR ADVISORY VOTE 13 Annual report on Directors remuneration MATTERS OF INFORMATION 14 Amendments to the Board of Directors Regulation AGENDA
Slide 10: Shareholders' Meeting
stan uitai VATE — —_ v- ‘SHAREHOLD MEETI es
Slide 11: Quorum (provisional)
QUORUM (PROVISIONAL)
Slide 12: Shareholders' Meeting
stan uitai VATE — —_ v- ‘SHAREHOLD MEETI es
Slide 13: Rafael del Pino, Chairman
RAFAEL DEL PINO CHAIRMAN
Slide 14: The Year at Ferrovial
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Slide 15: The Year at Ferrovial
• Good operating performance • Record-high backlog • Growth in traffic • Operating cash flow • Take advantage of opportunities THE YEAR AT FERROVIAL
Slide 16: Operating Results
RESULTS S < = << ad Ww OW O
Slide 17: Operating Results
REVENUES EBITDA 9,701 M€ 1,027 M€ +10.2% +4.5% NET INCOME 720 M€ OPERATING RESULTS 79.1%
Slide 18: Financial Position
FINANCIAL POSITION
Slide 19: Financial Position
POSITIVE NET CASH CONSOLIDATED NET POSITION DEBT 1,514 M€ Excl. project debt 4,542 M€ Incl. project debt FINANCIAL POSITION
Slide 20: Cash Flow and Capex
CASH FLOW AND CAPEX
Slide 21: Cash Flow and Capex
OPERATING CASH FLOW EXCL. PROJECTS INVESTMENTS 889 M€ 374 M€ • Services 289 M€ • Services 207 M€ • Construction 272 M€ • Construction 46 M€ • Toll Roads dividends 267 M€ • Toll Roads 120 M€ • Airports dividends 132 M€ CASH FLOW AND CAPEX
Slide 22: Backlog: 31,531 M€
BACKLOG: 31,531 M€
Slide 23: Backlog: 31,531 M€
SERVICES CONSTRUCTION 22,800 M€ 8,731 M€ • Waste treatment - Isle of Wight • Central section of the Thames (United Kingdom) Tideway Tunnel (United • Maintenance of water networks, Kingdom) sewers and environmental • Toowoomba Second Range services (UK) Crossing (Australia) • Ruta del Cacao (Colombia
Slide 24: International Development
INTERNATIONAL DEVELOPMENT
Slide 25: International Development
CONSOLIDATED INCLUDING EQUITY HOLDINGS REVENUES REVENUES 72% 76% EBITDA EBITDA 61% 80% INTERNATIONAL DEVELOPMENT BACKLOG BACKLOG 75% 75%
Slide 26: Funding Sources
FUNDING SOURCES
Slide 27: Funding Sources
• Project bond issuance: • HAH 1,200 M£ • 407 ETR 650 MCAD • A-66 185 M€ • Liquidity line • Amount: extended to 1,250 M€ • Term: 5 years (2020) • Cost: 50 basis points • Fitch and S&P ratings: BBB FUNDING SOURCES
Slide 28: Share Performance
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Slide 29: Share Performance
FERROVIAL SHAREHOLDER RETURN Ibex-35 27% in 2015 31.4% including dividend -7% in 2015 16.43€ 20.86€ 18.56€ +27% -11% SHARE PERFORMANCE Ibex-35 -7.2% -7,5% 31.12.2014 31.12.2015 03.05.2016 2015 2016
Slide 30: Shareholder Remuneration
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Slide 31: Ferrovial Flexible Dividend
SHAREHOLDER REMUNERATION IN 2015 € / share Scrip dividend (May 2015) 0.304 2015 Scrip dividend (Nov. 2015) 0.398 TOTAL 0.702 Buyback of 12.5 M shares for 265 M€ PROPOSED SHAREHOLDER REMUNERATION IN 2016* FERROVIAL FLEXIBLE DIVIDEND € / share Expected scrip dividend 0.311 2016 Expected scrip dividend
Slide 32: Corporate Governance
GORPORATE OA, GOWERNANGE
Slide 33: Corporate Governance
• Appointment of a Compliance Manager • Update of Crime Prevention Protocols • Approval of corporate policies: • Tax Policy • Control and Tax Risk Management Policy • Health and Safety Policy • Director appointment policy • Director remuneration policy • Adaptation of the Bylaws and Board Regulation
Slide 34: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY
Slide 35: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY
Slide 36: Awards and Distinctions
AWARDS AND DISTINCTIONS
Slide 37: Awards and Distinctions
“Top Employers 2015” Award for Best Corporate Best for the Human Silver award for Ferrovial's Social Communication Resources policy Business business track Responsibility Transformation record project ferrovial ferrovial ferrovial budimex agroman cintra services airports AWARDS AND DISTINCTIONS Reco
Slide 38: Shareholders' Meeting 2016
SHAREHOLDERS’ MEETING 2016
Slide 39: Santiago Fernández Valbuena
SANTIAGO FERNÁNDEZ VALBUENA CHAIRMAN OF THE AUDIT AND CONTROL COMMITTEE
Slide 40: Audit and Control Committee
AUDIT AND CONTROL COMMITTEE
Slide 41: Audit and Control Committee
• Members • Functions • Activities: • Financial reporting • Liaising with the external auditor • Internal control procedures AUDIT AND CONTROL COMMITTEE • Internal audit • Risk analysis and risk control systems • Actions relating to corporate governance and compliance
Slide 42: Shareholders' Meeting 2016
SHAREHOLDERS’ MEETING 2016
Slide 43: Íñigo Meirás, CEO
ÍÑIGO MEIRÁS CEO
Slide 44: 2015 Results
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Slide 45: 2015 Results
• Growth • M&A • Cash flow • Shareholder remuneration • Value creation • Sustainability 2015 RESULTS
Slide 46: 2015 Results: Growth
GROWTH M€ 2015 2014 Chg. 15-14 Revenues 9,701 8,802 10% EBITDA 1,027 983 4.5% EBIT 770 738 4% Net profit 720 402 79% Construction backlog 8,731 8,091 8% Services backlog 22,800 22,369 2% 2015 RESULTS
Slide 47: 2015 Results: Traffic
TRAFFIC • Toll Roads: • Airports: • 407 ETR (+3%) • Heathrow (+2%) • NTE (+29%) • AGS (+5%) • Ausol I (+12%) • Glasgow (+13%) • M4 (+7%) • Azores (+6%) 2015 RESULTS
Slide 48: 2015 Results: M&A
M&A • Asset rotation • ITR (50 M$) • M3, M4 (61 M€, in 2016) • Chicago Skyway (269 M$, in 2016) • Takeover bid • Broadspectrum (1.5 AUD per share) 2015 RESULTS
Slide 49: 2015 Results: Cash Flow
CASH FLOW AIRPORTS TOLL ROADS OPERATING CASH FLOW 14% 28% Ex-infrastructure projects Services 289 Construction 272 Toll Roads (dividends) 267 Airports (dividends) 132 Others (70) CONSTRUCTION SERVICES TOTAL 889 M€ 28% 30% 2015 RESULTS
Slide 50: Shareholder Remuneration
SHAREHOLDER REMUNERATION DIVIDENDS AND SHARE BUYBACKS TOTAL RETURN 532 M€ 31% 2015 RESULTS
Slide 51: Value Creation
VALUE CREATION 5 YEARS OF GROWTH M€ 15,270 12,029 10,317 8,215 6,840 2015 RESULTS 2011 2012 2013 2014 2015 Capitalisation
Slide 52: Analyst Valuation
ANALYST VALUATION NET CASH POSITION 7% TOLL ROADS SPAIN 13% AIRPORTS 50% 13% CONSTRUCTION 12% SERVICES INTERNATIONAL 18% 87% 2015 RESULTS April 2016
Slide 53: Contribution by Business
CONTRIBUTION, BY BUSINESS Revenues 9,701 M€ EBITDA 1,027 M€ TOLL ROADS CONSTRUCTION 5% CONSTRUCTION TOLL ROADS 44% 38% 32% SERVICES SERVICES 2015 RESULTS 51% 30%
Slide 54: Geographic Distribution
GEOGRAPHIC DISTRIBUTION Revenues 9,701 M€ EBITDA 1,027 M€ OTHERS OTHERS 7% 7% SPAIN POLAND SPAIN POLAND 13% 28% 6% 39% US AND CANADA 72% INTERNATIONAL 61% INTERNATIONAL 16% US AND CANADA 39% 2015 RESULTS UNITED UNITED KINGDOM KINGDOM 36% 9%
Slide 55: Contribution by Business Including Equity Holdings
CONTRIBUTION, BY BUSINESS INCLUDING EQUITY HOLDINGS Revenues 11,144 M€ EBITDA 1,893 M€ AIRPORTS TOLL ROADS 10% 9% TOLL ROADS AIRPORTS 29% CONSTRUCTION 35% 33% CONSTRUCTION SERVICES 18% SERVICES 48% 18% 2015 RESULTS
Slide 56: Geographic Distribution Including Equity Holdings
GEOGRAPHIC DISTRIBUTION INCLUDING EQUITY HOLDINGS Revenues 11,144 M€ EBITDA 1,893 M€ OTHERS OTHERS POLAND POLAND 7% 1% 4% SPAIN 7% SPAIN 20% 24% US AND CANADA US AND 17% 76% CANADA 80% INTERNATIONAL 32% INTERNATIONAL UNITED 2015 RESULTS UNITED KINGDOM KINGDOM 45% 43%
Slide 57: Net Cash Position
NET CASH POSITION Ex-infrastructure projects M€ 1,675 1,632 1,484 1,514 907 2015 RESULTS 2011 2012 2013 2014 2015
Slide 58: Significant Events
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Slide 59: Significant Events 2015
POLAND UNITED KINGDOM 1Q Contract for section S3 153 M€ 2Q Environmental services TRAFFORD 235 M£ JAN MAR APR JUN CANADA USA Financial completion Financial completion 407 EAST PHASE 2 880 MCAD I-77 648 M$ CORPORATION UNITED KINGDOM Expansion Water infrastructure maintenance LIQUIDITY LINE to 1,250 M
Slide 60: Toll Roads
TOLL ROADS
Slide 61: Toll Roads: Improved Traffic and New Contracts
IMPROVED TRAFFIC AND NEW CONTRACTS • Dividends: 267 M€ • Positive traffic performance • New contracts: • Toowoomba (Australia) • Ruta del Cacao (Colombia) • Opening: LBJ (Texas, USA) • Financial completion: I-77 (USA); 407 East Phase 2 (Canada); Toowoomba (Australia) • 407ETR: Traffic (+3%), Revenues (+
Slide 62: Toll Roads Results
RESULTS M€ 2015 2014 Chg. Revenues 513 432 19% EBITDA 333 257 30% EBIT 250 182 37% Dividends 267 255 TOLL ROADS
Slide 63: Toll Roads Revenues by Geography
REVENUES BY GEOGRAPHY INCLUDING EQUITY HOLDINGS 1,002 M€ OTHERS IRELAND 9% SPAIN 4% 14% PORTUGAL 10% USA 86% INTERNATIONAL 14% CANADA TOLL ROADS 49%
Slide 64: Services
SERVICES
Slide 65: Services: Growth and Cash Flow
GROWTH AND CASH FLOW • Revenues: (+11%) • Difficult situation in the United Kingdom: • Public sector budgetary constraints • Strong cash flow in Spain (233 M€) • Good progress in new markets: • Chile • Poland • Qatar • Largest contract 2015: • Severn Trent: 250 M£ SERVICES
Slide 66: Services Results
RESULTS M€ 2015 2014 Chg. Revenues 4,897 4,401 11% EBITDA 312 387 -19% EBIT 173 260 -34% Operating cash flow 289 302 (Ex-infra) SERVICES
Slide 67: Services Revenues by Geography
REVENUES, BY GEOGRAPHY Revenues 4,897 M€ INTERNATIONAL 2% SPAIN 34% 66% INTERNATIONAL UNITED KINGDOM 64% SERVICES Includes joint ventures
Slide 68: Services Backlog by Geography
BACKLOG, BY GEOGRAPHY Backlog 22,800 € INTERNATIONAL 1% SPAIN 27% 73% INTERNATIONAL UNITED KINGDOM 72% SERVICES Includes joint ventures
Slide 69: Services Backlog
BACKLOG M€ 22,369 22,800 17,749 12,425 12,784 2011 2012 2013 2014 2015 SERVICES Includes joint ventures
Slide 70: Construction
CONSTRUCTION
Slide 71: Construction: Record Profitability
RECORD PROFITABILITY • Robust financial indicators: • Sales growth • EBIT margin (8.5%) • Strong cash flow • Order intake (4,990 M€) • Strong international presence • Growth by Budimex (Revenues +6%, EBITDA +23%, Backlog +38%) • Largest contract 2015: • Thames Tideway Tunnel (UK): 511 M€ CONSTRUCTION
Slide 72: Construction Results
RESULTS M€ 2015 2014 Chg. Revenues 4,287 3,942 9% EBITDA 393 349 13% EBIT 364 312 17% Operating cash flow 272 236 (Ex-infra) CONSTRUCTION
Slide 73: Construction Revenues by Geography
REVENUES, BY GEOGRAPHY 4,287 M€ OTHERS 11% SPAIN 20% POLAND 29% 80% INTERNATIONAL UNITED KINGDOM 8% CONSTRUCTION CANADA USA 4% 28%
Slide 74: Construction Backlog by Geography
BACKLOG, BY GEOGRAPHY 8,731 M€ OTHERS 12% CHILE SPAIN 4% 19% POLAND 81% INTERNATIONAL UNITED 23% KINGDOM 13% CANADA CONSTRUCTION 3% USA 26%
Slide 75: Construction Backlog
BACKLOG M€ Backlog 8,731 M€ 9,997 8,699 8,731 7,867 8,091 CONSTRUCTION 2011 2012 2013 2014 2015
Slide 76: Airports
Glasgow International Airps
Slide 77: Airports: Growth in Passengers
GROWTH IN PASSENGERS • Record year for Heathrow: • 75 M passengers • Dividends: 95 M€ • Satisfaction: 81% rate their experience as very good or excellent • Best Airport in Europe (ACI) for the second year running • Growth at AGS: • First year under management • 14 M passengers: (+5%) • Dividends: 38
Slide 78: Airports Results
RESULTS HAH M£ 2015 2014 Change Revenues 2,767 2,692 3% EBITDA 1,845 1,541 20% Traffic (M.Pax) 75 73.4 2% Dividends 300 270 AGS M£ 2015 2014 Change Revenues 195 187 4% EBITDA 75 68 10% Traffic (M.Pax) 14 13.3 5% Dividends 60 - AIRPORTS
Slide 79: Priorities
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Slide 80: 2016 Priorities
BUSINESS LIQUIDITY REVENUES 10% +4,000 M€ Sound financial position Good operating performance BACKLOG DEVELOPMENT 31,531 M€ 75% INTERNATIONAL OECD MARKETS 2016 PRIORITIES Services and Construction Monitoring other countries
Slide 81: 2016 Priorities
2016 PRIORITIES • Profitable growth • Operational management • Financial discipline • Cash flow • Sustainable company 2016 PRIORITIES
Slide 82: Commitment to Society
COMMITMENT TO SOCIETY 853,000 hours of training in workplace 84% employee satisfaction index safety >808,000 beneficiaries of social initiatives -28% >100 2016 PRIORITIES CO2 emissions R&D projects since 2009
Slide 83: Quorum
QUORUM
Slide 84: Shareholders' Meeting
stan uitai VATE — —_ v- ‘SHAREHOLD MEETI es
Slide 85: Shareholder Remarks
SHAREHOLDER REMARKS
Slide 86: Shareholders' Meeting
stan uitai VATE — —_ v- ‘SHAREHOLD MEETI es
Slide 87: Agenda
AGENDA
Slide 88: Approval of financial statements
MATTERS SUBMITTED FOR APPROVAL 1 Approval of financial statements AGENDA
Slide 89: Application of income
MATTERS SUBMITTED FOR APPROVAL 2 Application of income AGENDA
Slide 90: Discharge of the Board of Directors
MATTERS SUBMITTED FOR APPROVAL 3 Discharge of the Board of Directors AGENDA
Slide 91: Re-appointment of auditors
MATTERS SUBMITTED FOR APPROVAL 4 Re-appointment of auditors AGENDA
Slide 92: Re-appointment and appointment of Directors
MATTERS SUBMITTED FOR APPROVAL 5 Re-appointment, ratification and appointment of Directors AGENDA
Slide 93: Re-appointment of Rafael del Pino
MATTERS SUBMITTED FOR APPROVAL 5.1.-Re-appointment of Mr. Rafael del Pino y Calvo-Sotelo AGENDA
Slide 94: Re-appointment of Santiago Bergareche
MATTERS SUBMITTED FOR APPROVAL 5.2.- Re-appointment of Mr. Santiago Bergareche Busquet AGENDA
Slide 95: Re-appointment of Joaquín Ayuso
MATTERS SUBMITTED FOR APPROVAL 5.3.- Re-appointment of Mr. Joaquín Ayuso García AGENDA
Slide 96: Re-appointment of Íñigo Meirás
MATTERS SUBMITTED FOR APPROVAL 5.4.- Re-appointment of Mr. Íñigo Meirás Amusco AGENDA
Slide 97: Re-appointment of Juan Arena
MATTERS SUBMITTED FOR APPROVAL 5.5.- Re-appointment of Mr. Juan Arena de la Mora AGENDA
Slide 98: Re-appointment of María del Pino
MATTERS SUBMITTED FOR APPROVAL 5.6.- Re-appointment of Ms. María del Pino y Calvo-Sotelo AGENDA
Slide 99: Re-appointment of Santiago Fernández Valbuena
MATTERS SUBMITTED FOR APPROVAL 5.7.- Re-appointment of Mr. Santiago Fernández Valbuena AGENDA
Slide 100: Re-appointment of José Fernando Sánchez-Junco
5.8.-Re-appointment of Mr. José Fernando Sánchez-Junco Mans AGENDA
Slide 101: Re-appointment of Joaquín del Pino
5.9.- Re-appointment of Mr. Joaquín del Pino y Calvo-Sotelo AGENDA
Slide 102: Ratification and appointment of Óscar Fanjul
5.10.- Ratification and apointment of Mr. Óscar Fanjul Martín AGENDA
Slide 103: Maintenance of Board vacancy
5.11.- Maintenance of the vacancy on the Board of Directors AGENDA
Slide 104: Capital increase through issuance of shares
6 Capital increase through the issuance of ordinary shares AGENDA
Slide 105: Second capital increase
7 Second capital increase through the issuance of ordinary shares AGENDA
Slide 106: Capital reduction through retirement of shares
8 Capital reduction through the retirement of own shares AGENDA
Slide 107: Amendment of the Bylaws
AGENDA 9 Amendment of the Bylaws
Slide 108: Amendment of articles to adapt to Capital Companies Act
9.1.- Amendment of articles 46, 47 and 51 to adapt to the Capital Companies Act AGENDA
Slide 109: Amendment of articles, technical improvements
9.2.- Amendment of articles 38 and 42 to introduce technical and drafting improvements AGENDA
Slide 110: Amendment of article 4, registered office
9.3.- Amendment of article 4. Possibility of relocating the registered office within Spanish territory by resolution of the Board of Directors AGENDA
Slide 111: Amendment of articles on co-optation of directors
9.4.- Amendment of articles 41 and 53. Adaptation to the Capital Companies Act with regard to the appointment of directors by co-optation AGENDA
Slide 112: Amendment of article 50, Board Committees
9.5.- Amendment of article 50. Number of members and secretary of the Board Committees. AGENDA
Slide 113: Amendment of article 52, Appointment Committee
9.6.- Amendment of article 52. Competency of the Appointment and Remuneration Committee AGENDA
Slide 114: Approval of Director remuneration policy
10 Approval of the Director remuneration policy AGENDA
Slide 115: Executive directors share remuneration plan
11 Participation by executive directors in the plan enabling them to collect part of the remuneration in shares AGENDA
Slide 116: Delegation of powers to execute resolutions
12 Delegation of powers to the Board and the Executive Committee to execute Meeting resolutions AGENDA
Slide 117: Advisory vote: report on director remuneration
MATTERS FOR ADVISORY VOTE 13 Annual report on director remuneration AGENDA
Slide 118: Amendments to Board of Directors Regulation
MATTERS OF INFORMATION 14 Amendments to the Board of Directors Regulation AGENDA
Slide 119: Shareholders' Meeting
stan uitai VATE — —_ v- ‘SHAREHOLD MEETI es