Ferrovial N.v. · BME:FER
Ferrovial — Investor Presentation (May 2024)
140 slides from Ferrovial's investor presentation, May 2024
Slide 1: Investor Presentation: Equity Story & Fact Book
1 Investor Presentation Equity Story & Fact Book May 2024
Slide 2: Disclaimer
2 DISCLAIMER This presentation and any accompanying oral presentation (together, the “presentation”) has been prepared by Ferrovial SE (the This presentation speaks only as of today’s date, and, except as required by law, the Company does not undertake to update any “Company”, “we” or “us” and, toge
Slide 3: Equity Story
3 1 EQUITY STORY • Business Model • Why Ferrovial? • Looking ahead
Slide 4: One of North America's leading road and airport infrastructure companies
4 12% One of North Total Shareholder Return 1 (10yr CAGR) America’s $27B Market Cap leading road As of Dec. 31, 2023 and airport BBB Investment grade 2 infrastructure Stable outlook companies 80% equity value in North America 3 24,799 employees As of Dec.31, 2023 22 years present in Dow Jones (1) To
Slide 5: Ferrovial's stock price has outperformed major indices over the last 10 years
5 Ferrovial’s stock price has outperformed major indices over the last 10 years TOTAL SHAREHOLDER RETURN 1 FERROVIAL:+224% S&P 500:+211% MSCI World Index:+128% S&P Global Infra:+75% DJ Brookfield Infra:+67% IBEX 35:+50% MSCI World Infra:+44% Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 De
Slide 6: Long-term value creation underpinned by a growing portfolio of infrastructure assets
6 Long-term value creation underpinned by a growing portfolio of infrastructure assets TRANSFORMATION INTO A LEADING INFRASTRUCTURE DEVELOPER FERROVIAL’S EQUITY VALUE FROM €24.9B Key Highlights as of Dec. 2023 1 INFRASTRUCTURE ASSETS 1 91% 91% 87% 86% 84% 81% 78% 3x Equity value of 61% 70% infrastru
Slide 7: Business model
7 Business model INTEGRATED PLATFORM TO DEVELOP INFRASTRUCTURE PROJECTS WITH HIGH VALUE CREATION Develop and operate innovative, efficient and sustainable infrastructure TOLL ROADS AIRPORTS ENERGY projects with high value Develop congestion Facilitate air transport Develop projects for creation for
Slide 8: Why Ferrovial?
8 Unique infrastructure assets in North America Growth in new greenfield Why projects in North America Value creation in selected projects in other countries Solid cash flow generation and financial discipline
Slide 9: Unique infrastructure assets in North America
Why UNIQUE INFRASTRUCTURE GROWTH IN NEW GREENFIELD VALUE CREATION IN SELECTED SOLID CASH FLOW GENERATION 9 ASSETS IN NORTH AMERICA PROJECTS IN NORTH AMERICA PROJECTS IN OTHER COUNTRIES & FINANCIAL DISCIPLINE Unique infrastructure assets in North America TOP PERFORMING REGIONS » Present in areas with
Slide 10: High degree of freedom to set prices
Why UNIQUE INFRASTRUCTURE GROWTH IN NEW GREENFIELD VALUE CREATION IN SELECTED SOLID CASH FLOW GENERATION 10 ASSETS IN NORTH AMERICA PROJECTS IN NORTH AMERICA PROJECTS IN OTHER COUNTRIES & FINANCIAL DISCIPLINE High degree of freedom to set prices 407 ETR DFW EXPRESS LANES I-77 EXPRESS LANES I-66 EXPR
Slide 11: Best-in-class capabilities to pursue sizeable project pipeline
Why UNIQUE INFRASTRUCTURE GROWTH IN NEW GREENFIELD VALUE CREATION IN SELECTED SOLID CASH FLOW GENERATION 11 ASSETS IN NORTH AMERICA PROJECTS IN NORTH AMERICA PROJECTS IN OTHER COUNTRIES & FINANCIAL DISCIPLINE Best-in-class capabilities to pursue sizeable project pipeline $4T1 funding gap for US infr
Slide 12: India: Great prospects with a great player
Why UNIQUE INFRASTRUCTURE GROWTH IN NEW GREENFIELD VALUE CREATION IN SELECTED SOLID CASH FLOW GENERATION 12 ASSETS IN NORTH AMERICA PROJECTS IN NORTH AMERICA PROJECTS IN OTHER COUNTRIES & FINANCIAL DISCIPLINE India: Great prospects with a great player IRB one of the best positioned companies to capt
Slide 13: Future cash flow generation levers
Why UNIQUE INFRASTRUCTURE GROWTH IN NEW GREENFIELD VALUE CREATION IN SELECTED SOLID CASH FLOW GENERATION 13 ASSETS IN NORTH AMERICA PROJECTS IN NORTH AMERICA PROJECTS IN OTHER COUNTRIES & FINANCIAL DISCIPLINE Future cash flow generation levers Expected dividends to be received by Ferrovial from exis
Slide 14: Cash flow growth to fund investments and shareholder distributions
Why UNIQUE INFRASTRUCTURE GROWTH IN NEW GREENFIELD VALUE CREATION IN SELECTED SOLID CASH FLOW GENERATION 14 ASSETS IN NORTH AMERICA PROJECTS IN NORTH AMERICA PROJECTS IN OTHER COUNTRIES & FINANCIAL DISCIPLINE Cash flow growth to fund investments and shareholder distributions1 CAPITAL ALLOCATION CRIT
Slide 15: Looking ahead
15 Looking ahead 2024-2026 EXPECTATIONS » GROWTH SUPPORTED BY Dividends from BEST-IN-CLASS ASSETS IN Shareholder infrastructure assets in distributions2 PRIME LOCATIONS existing portfolio1 » UNIQUE POSITION TO CAPTURE GROWTH FROM VALUE ACCRETIVE PIPELINE €2.2B €1.7B Any proceeds from a potential div
Slide 16: Fact Book
Fact Book 16 2 3 4 BUSINESS DIVISIONS FINANCIAL PROFILE ESG Toll Roads Debt structure Environment Airports Cash Flow details Social Construction Historical financial data Governance 5 6 STOCK INFORMATION APPENDIX Share price performance Shareholder distributions
Slide 17: Business Divisions
17 2 BUSINESS DIVISIONS
Slide 18: Toll Roads
TOLL ROADS 18
Slide 19: Toll roads: complex infrastructure projects with pricing flexibility and long duration
19 TOLL ROADS Complex infrastructure projects with pricing flexibility, long duration and located in highly congested urban areas 21 81% €3.8B 83% 93% CONCESSIONS OF FERROVIAL’S DIVIDENDS REVENUES ADJ. EBITDA ACROSS 10 EQUITY VALUE2 RECEIVED US ASSETS’ CONTRIBUTION TO TOLL COUNTRIES1 2014-2023 ROADS
Slide 20: 407 ETR
407 ETR Toronto (Canada)
Slide 21: Asset overview
21 TOLL ROADS | 407 ETR Shareholders: 43.23% Cintra – 50.01% CPPIB - 6.76% Atkins Realis Asset overview » 108 km (67 miles) with 24 segments. » Runs parallel to the 401, one of North America’s most congested highways. » 99-year concession term. Opened in 1999. A congestion-free toll road in » 74 yea
Slide 22: Historical financial figures
22 TOLL ROADS | 407 ETR Historical financial figures
Slide 23: Pricing framework & revenue structure
23 TOLL ROADS | 407 ETR Pricing framework & revenue structure 407 ETR has flexibility to set toll rates PO PULATION GRO WTH TRAFFIC CONGESTION » Flexible tolling regime designed to provide congestion relief in the corridor. GDP GRO WTH » Rates are structured to keep 407 ETR fast, safe and reliable.
Slide 24: Congestion Payment (Schedule 22)
24 TOLL ROADS | 407 ETR Congestion Payment (Schedule 22) Schedule 22 Payment Example Calculation 2 x ANNUAL SEGMENT TARIFF REVENUES x % TRAFFIC UNDER TRAFFIC THRESHOLD » The Contract1 includes payments to the Province if traffic levels remain below contract-set minimum relief traffic thresholds. If
Slide 25: Dividends & Financial Structure
25 TOLL ROADS | 407 ETR Dividends & Financial Structure NET DEBT (CADmn) EQUITY Total / Disbursed $804.6 m/ 100% DIVIDENDS Total / Cintra 10.9bn/4.8 bn DSCR Lock up 1.35X "A" (Senior Debt) S&P "A-" (Junior Debt) "BBB" (Subordinated Debt) RATINGS "A" (Senior Debt) DBRS "A low" (Junior Debt) "BBB" (Su
Slide 26: Mandatory capacity improvements
26 TOLL ROADS | 407 ETR Mandatory capacity improvements Expansion requirements: Schedule 22, Article 4 » An Expandable Segment is defined as a segment that has not reached its Ultimate Number of Core Lanes and the Lane Flow Rate exceeding 1,700 vehicles during a Peak Hour for more than 125 Hours in
Slide 27: Public information
27 TOLL ROADS | 407 ETR Public information SEDAR- System for Electronic Reported information Document Analysis and Retrieval » Certification of Annual Filings (CEO and CFO) WEB PAGE: https://www.sedar.com/ » Certification of Interim Filings (CEO and CFO) » Annual Information Form o Corporate structu
Slide 28: US Express Lanes
US Express Lanes 28
Slide 29: Asset description (I)
29 TOLL ROADS | US MANAGED LANES Asset description (I) » A solution to congestion on existing urban corridors through active management of newly added capacity through dynamic pricing Express toll way » Every driver has the option to pay for a fast, reliable trip everyday within an existing » Dynami
Slide 30: Asset description (II)
30 TOLL ROADS | US MANAGED LANES Asset description (II) North Tarrant Express (NTE) Lyndon B Johnson (LBJ) North Tarrant Expres (NTE35W) I-77 I-66 DFW, TEXAS DFW, TEXAS DFW, TEXAS CHARLOTTE, NORTH CAROLINA NORTHERN VIRGINIA SHAREHOLDER Cintra Share - Global Consolidation 62.97% 54.60% 53.67% 72.24%
Slide 31: Asset description (III)
31 TOLL ROADS | US MANAGED LANES Asset description (III) NTE – LBJ – NTE 35W - DALLAS, TEXAS I-77 - NORTH CAROLINA I-66, NORTHERN VIRGINIA Price adapts on real time with potential toll rate changes Price adapts on real time with potential toll rate changes Price adapts on real time with potential to
Slide 32: NTE | LBJ | NTE 35W
NTE | LBJ | NTE 35W Dallas Fort-Worth
Slide 33: Overview
33 TOLL ROADS | NTE, LBJ & NTE 35W Overview SIGNIFICANT LOGISTICS DEVELOPMENTS IN THE REGION Best driving experience in Dallas-Fort Worth » DFW is a metroplex with a widespread population and multiple employment centers » The area is ranked 1st in the US for absolute population growth1 » Estimated p
Slide 34: Historical Financial Figures
34 TOLL ROADS | NTE, LBJ & NTE 35W Historical Financial Figures
Slide 35: Pricing Framework
35 MANDATORY MODE: TOLL ROADS | NTE, LBJ & NTE 35W Pricing Framework $1.09/mi (1) Toll rate mechanism Soft Cap: The TEXpress Lanes operate with a soft toll cap per mile pegged to US National CPI-U. Under the Cap, Dynamic Mode: Total freedom to charge any amount below the soft cap. Tolls set in real
Slide 36: Revenue Structure
36 TOLL ROADS | NTE, LBJ & NTE 35W Revenue Structure PO PULATION GRO WTH TRAFFIC CONGESTION Toll revenues (approx. 99% of total revenues): GDP GRO WTH » NTTA (North Texas Tollway Authority) bills customers and performs Main collection services on behalf of the Concession Company with collection risk
Slide 37: Contractual payments to the Department of Transportation (DOT)
37 TOLL ROADS | NTE, LBJ & NTE 35W Contractual payments to the Department of Transportation (DOT) Revenue share Refinancing gain » Requirement under the Concession Agreement. » TxDOT’s right to a portion of any Refinancing Gain, and to a potential gain from an Initial Financing. » Compares cumulativ
Slide 38: Dividends & Financial Structure
38 Dividends distributions usually linked to FCF generation. BOND MATURITY SCHEDULE ($mn) TOLL ROADS | NTE, LBJ & NTE 35W • NTE & LBJ: First dividend cannot be made before the Dividends & Financial Structure 5th anniversary of the Substantial Completion Day. • NTE 35W: First distribution to the Shar
Slide 39: NTE - Mandatory Capacity Improvements
39 TOLL ROADS | NTE, LBJ & NTE 35W NTE - Mandatory Capacity Improvements » Contractual obligation to design and build of the Mandatory Capacity Improvements once certain revenue thresholds are met. TYPICAL SECTION » The project consist of the addition of 1 GPL per direction on segment 1 and 1 ML per
Slide 40: NTE35W - Mandatory Capacity Improvements
40 TOLL ROADS | NTE, LBJ & NTE 35W NTE35W - Mandatory Capacity Improvements NTE 35W - 3A 3B 3C-THE GOLDEN TRIANGLE BRAIDED RAMPS » Project Description: The Concession will be responsible to design, build, operate » Project Description: Construction of two bridges and related elements for the and mai
Slide 41: Public Information
41 TOLL ROADS | NTE, LBJ & NTE 35W Public Information EMMA (Electronic Municipal Market Access System) WEB PAGE https://emma.msrb.org/Home/Index • NTE: https://emma.msrb.org/IssueView/Details/ES398761 • 35W: https://emma.msrb.org/IssueView/Details/ER392132 • LBJ: https://emma.msrb.org/IssueView/Deta
Slide 42: I-66 Northern Virginia
I-66 Northern Virginia
Slide 43: Overview
43 TOLL ROADS | I-66 Overview Serving one of the highest-income suburbs in the US » I-66 is the main east-west interstate highway in Northern Virginia connecting Washington DC and Arlington with the Northern Virginia suburbs. » Design & Construction of 2 Express Lanes and modification of the existin
Slide 44: Pricing framework
44 TOLL ROADS | I-66 Pricing framework Toll rate mechanism Fee structure Transponder/tag (pre-paid): If a vehicle is equipped with a The 66 Express Lanes offer a dynamic pricing system that adjusts transponder/tag, the driver will pay the price on the sign and no toll rates based on real-time traffi
Slide 45: Revenue structure
45 TOLL ROADS | I-66 Revenue structure PO PULATION GRO WTH TRAFFIC Toll revenues (approx. 96% of total revenues): CONGESTION GDP GRO WTH » Transponder/tag customers: I-66 collects 100% of Main » revenue from VDOT. Video customers (vehicles without a transponder): I-66 revenue EMP directly bills and
Slide 46: Contractual payments to the Department of Transportation
46 TOLL ROADS | I-66 Contractual payments to the Department of Transportation Revenue share Transit funding payments » Requirement under the Concession Agreement. » Dedicated to operate Virginia’s transit system. » Compares the Net Present Value of actual cumulative revenues » Payments started in 20
Slide 47: Dividends & Financial Structure
47 TOLL ROADS | I-66 Dividends & Financial Structure • Distributions to shareholders cannot be made before the 5th anniversary of Substantial Completion (Nov. 2022). I-66 • If the Developer elects an early Debt Service Payment Commencement Date, NORTHERN VIRGINIA distributions can be made on the fir
Slide 48: Public information
48 TOLL ROADS | I-66 Public information EMMA (Electronic Municipal Market Access System) WEB PAGE https://emma.msrb.org/Home/Index https://emma.msrb.org/IssueView/Details/ES381888 Information Reported information » The information to be reported is set forth in rule 15c2- » Audited Financial Stateme
Slide 49: I-77 Charlotte | North Carolina
I-77 Charlotte | North Carolina
Slide 50: Overview
50 TOLL ROADS | I-77 Overview A key growth enabler for Charlotte region » I-77 is a high-growth corridor that connects Charlotte with its dynamic northern suburbs » Express lanes opening since the end of 2019 has improved speed across the entire corridor » It serves a mix of local and long-distance
Slide 51: Historical financial figures
51 TOLL ROADS | I-77 Historical financial figures
Slide 52: Pricing framework
52 TOLL ROADS | I-77 Pricing framework Toll rate mechanism Fee structure Dynamic pricing system that adjusts toll rates based on real-time traffic conditions NC QUICK PASS (PRE-PAID): If vehicle is equipped with an electronic tag driver will and demand. This dynamic system is designed to prevent con
Slide 53: Revenue structure
53 TOLL ROADS | I-77 Revenue structure PO PULATION GRO WTH TRAFFIC Revenue structure CONGESTION Toll revenues (approx. 99% of total revenues): GDP GRO WTH Main » NCDOT bills customers and performs collection services on behalf of the Concession Company. Collection risk is fully borne by NCDOT, which
Slide 54: Contractual payments to the Department of Transportation
54 TOLL ROADS | I-77 Contractual payments to the Department of Transportation Revenue share Refinancing gain » Requirement under the Concession Agreement. » NCDOT’s right to a portion of any Refinancing Gain, including a gain from an » Compares cumulative actual revenues from the opening date with “
Slide 55: Dividends & Financial Structure
55 TOLL ROADS | I-77 Dividends & Financial Structure • First distribution to the Shareholders cannot be made before the 5th anniversary of the Substantial Completion Day (2019). I-77 • Unless the Concession chooses the option of a TIFIA Optional Capitalized NORTH CAROLINA Interest Prepayment Commenc
Slide 56: Public information
56 TOLL ROADS | I-77 Public information EMMA (Electronic Municipal Market Access System) WEB PAGE https://emma.msrb.org/Home/Index https://emma.msrb.org/IssueView/Details/ER368770 Information Reported information » The information to be reported is set forth in rule 15c2-12 "Municipal » Audited Fina
Slide 57: IRB Infrastructure Developers LTD
IRB Infrastructure Developers LTD
Slide 58: IRB investment rationale
58 TOLL ROADS | IRB INFRASTRUCTURE DEVELOPERS, LTD IRB investment rationale • Value creation in selected investments outside North America where FER can find high long-term growth prospects • Population growth expected to lead the largest middle class in the world • One of the biggest toll road conc
Slide 59: Company Overview
59 IRB Holding Other TOLL ROADS | IRB INFRASTRUCTURE DEVELOPERS, LTD + Promoter institutions Shareholder Entities and public Company Overview structure 34.39% 23.81% 24.86% 16.94% GIC`s public fund owns additional c.3% stake BOT: Build-Operate-Transfer - HAM: Hybrid Annuity Model - TOT: Toll, Operat
Slide 60: Asset description
60 TOLL ROADS | IRB INFRASTRUCTURE DEVELOPERS, LTD Asset description » Focus on developing BOT projects, which offer high return potential. Experienced EPC player with a strong track record of developing roads; well positioned to take construction and traffic risk associated with such projects. » As
Slide 61: Asset description
61 TOLL ROADS | IRB INFRASTRUCTURE DEVELOPERS, LTD Asset description Private Invit IRB 51%, GIC 25%, Cintra 24% 15 1. Distributions includes interest payment, return of capital and dividend.
Slide 62: Asset description
62 TOLL ROADS | IRB INFRASTRUCTURE DEVELOPERS, LTD Asset description IRB Holdco – Healthy mix BOT, TOT, HAM BOT (Build-Operate-Transfer) Private operator finances, builds, and manages the road with traffic risk. TOT (Toll-Operate-Transfer) • Operational highway projects are given on a long-term leas
Slide 63: Asset description
63 TOLL ROADS | IRB INFRASTRUCTURE DEVELOPERS, LTD Asset description Public InvIT (Portfolio of 6 Assets) » Listed in May-2017 with initial portfolio of six operational assets; seventh asset was transferred in Sep-2017. » Two assets were successfully completed and handed back to the authority. One H
Slide 64: Asset description
64 TOLL ROADS | IRB INFRASTRUCTURE TRUST Asset description IRB Infrastructure Trust (Private Invit) - Capital Structure Portfolio of 12 BOT and 3 TOT toll road concessions
Slide 65: Other Assets
Other Assets 65
Slide 66: Summary
66 TOLL ROADS | OTHER ASSETS TOTAL INVESTED EQUITY IN Summary OTHER ASSETS 365 M€ Dividends and Kms (highway Ferrovial's Invested Committed Concession Remaining Construction capital returns length)/ Lots Type of asset Opening date Membership interest Interest equity (M€) equity (M€) (3) term life Km
Slide 67: Airports
Airports
Slide 68: Ferrovial is one of the world's leading private airport investors and operators
AIRPORTS 68 Ferrovial is one of the world's leading private airport investors 6 AIRPORTS €1.5bn ^^10% and operators LOCATED IN UK, US & TURKEY DIVIDENDS ANALYSTS’ VALUATION 2013-2023 20231 » Focus on North America & Europe JFK, NEW TERMINAL 49% STAKE 36 YEARS USD1.14B ONE (NTO) EQUITY CONCESSION TO
Slide 69: Contents
Contents 69 1 New Terminal One - JFK 2 Heathrow Airport 3 AGS Airports 4 Dalaman Airport
Slide 70: New Terminal One - JFK
70 1 New Terminal One - JFK
Slide 71: Overview (I)
AIRPORTS | NEW TERMINAL ONE (NTO) AT JFK 71 Overview (I) Largest terminal at JFK, when complete Ferrovial Share – Equity Accounted 49% One of the largest Location New York (USA) infrastructure • 2% Carlyle projects in the US, Other Shareholders • 30% JLC tripling the size of the • 19% ULLICO existin
Slide 72: Overview (II)
AIRPORTS | NEW TERMINAL ONE (NTO) AT JFK 72 Overview (II) JetBlue Airlines Terminal 5 Terminal 6 Key Dates of the NTO Project Terminal 8 Terminal 2 Opening of +4 WB End of American Airlines closure phase B1 (1) +1NB concession 2023 2028 Gates 2060 2022 2026 2030 Terminal 4 14 WB +4 WB Delta Airlines
Slide 73: Construction. Phase A
AIRPORTS | NEW TERMINAL ONE (NTO) AT JFK 73 Construction. Phase A DESING&BUILD (D&B) CONTRACT Construction of headhouse, Tishman: highly experienced NYC and airport builder east concourse, and associated » 120 years of experience including One World Trade Center aprons and roadways » 18 PANYNJ proje
Slide 74: Revenues & Opex
AIRPORTS | NEW TERMINAL ONE (NTO) AT JFK 74 Revenues & Opex THE RENT PAID BY THE MASTER CONCESSIONAIRE: URW(1) RUNNING THE DUTY FREE, RETAIL, SERVICES AND FOOD MAIN SOURCE OF INCOME S T R U C T UR E D A S F E E P E R COMMON USE CONCESSIONS AND BEVERAGE UNITS WITHIN NTO. 50% OF THIS REVENUE IS SHARED
Slide 75: Other financial obligations under the agreements
AIRPORTS | NEW TERMINAL ONE (NTO) AT JFK 75 Other financial obligations under the agreements NTO post-completion cashflow waterfall Payments to the Port Authority Earn-out (other than the revenue share) In connection with this transaction, we agreed Post-Completion Revenues with Carlyle Group on the
Slide 76: Financial structure
AIRPORTS | NEW TERMINAL ONE (NTO) AT JFK 76 Financial structure NTO’s inaugural $2 billion Series 2023 Bonds Financial Close Details Bond issuance in 2023 (refinancing process) Phase A funding: $8.9bn New York Transportation Development Corporation • $2 billion Bonds Issuer (NYTDC) were used to » Co
Slide 77: Public Information
AIRPORTS | NEW TERMINAL ONE (NTO) AT JFK 77 Public Information Information Reported Information » EMMA, United States official source for municipal securities data » Integrated Annual Reports and documents. It is provided by the Municipal Securities Rulemaking Board » Corporate Structure » More info
Slide 78: Heathrow Airport
78 2 Heathrow Airport
Slide 79: Overview (I)
AIRPORTS | HEATHROW AIRPORT 79 Overview (I) Europe’s busiest airport Ferrovial Share – Equity Accounted 25% Location London (UK) • 20% Qatar Authority UK’s only hub, • 12.62% CDPQ offering the most • 11.20% GIC Other Shareholders international • 11.18% Australian Retirement Trust • 10% China Investm
Slide 80: Historical Data
AIRPORTS | HEATHROW AIRPORT 80 Historical Data Revenues (£mn) EBITDA (£mn) 3,687 2,883 2,970 3,070 2,913 2,228 1,760 1,840 1,921 1,684 1,175 1,214 270 384 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 Traffic (million pax) Dividends pay by the asset(£mn) 525 500 500 78.0 80.1
Slide 81: Regulatory Framework (I)
AIRPORTS | HEATHROW AIRPORT 81 Regulatory Framework (I) Various regulatory bodies in the United Kingdom influence Heathrow’s operations: UK CAA (CAA) is the body that sets the maximum level of charges to airlines for each quinquennium. » H7 settlement covers period 2022-2026 » Single-till considers
Slide 82: Demand Profile
AIRPORTS | HEATHROW AIRPORT 82 Demand Profile 2023 2023 passenger numbers by market (versus 2022) Passengers (m) 79.2 Passengers ATM 450,194 Cargo ATM 3,896 UK Load factors (%) 79.6 4.2m Europe North America (+26%) 31.5m Seats per ATM 221.0 20.0m M. East (+22%) (+30%) 8.0m Cargo tonnage (*) (‘000) 1
Slide 83: Revenues & Opex
AIRPORTS | HEATHROW AIRPORT 83 Revenues & Opex CONCESSION FEES FROM RETAIL AND RETAIL (2) COMMERCIAL CONCESSIONAIRES & CAR PARKS, CAR RENTAL, ADVERTISING AND N U M B E R O F P A S S E NGE R S PREMIUM PRODUCTS PER AIRCRAFT AND ARE PASSENGER L E V I E D F O R A L L D E P A R T ING P A S S E NG E R S C
Slide 84: Heathrow Group Structure
AIRPORTS | HEATHROW AIRPORT 84 Heathrow Group Structure The majority of the Group's debt financing falls into the following categories: • Bonds issued in the debt capital markets from institutional • Subordinated bond issues and loan facilities investors and loan facilities raised from leading inter
Slide 85: Finance Forecast
AIRPORTS | HEATHROW AIRPORT 85 Finance Forecast Trigger / Forecasting (£ million) FY 2023 2024 (F) (£ million) FY 2023 2024 (F) Event Revenues 3,687 3,450 Ratios (3) Adjusted operating costs (1,459) (1,566) Heathrow SP Senior (Class A) RAR 63.7% 62.9% 72.5% / 72.5% Adjusted EBITDA (1) 2,228 1,885 He
Slide 86: Financing Position – Debt
AIRPORTS | HEATHROW AIRPORT 86 Financing Position – Debt Debt Maturity Profile at 31 December 2023 2500 Heathrow (SP) Class A £ bonds Heathrow (SP) Class A non-£ bonds Heathrow (SP) Class B bonds Heathrow (SP) Class A term debt Heathrow (SP) Class B term debt Heathrow Finance bonds 2000 Heathrow Fin
Slide 87: Public Information
AIRPORTS | HEATHROW AIRPORT 87 Public Information Information Reported Information » The Civil Aviation Authority (CAA), the UK's independent aviation » Integrated Annual Reports sector regulator, responsible for the price regulation of Heathrow, Gatwick and Stansted airports and more general » Corp
Slide 88: AGS Airports
88 3 AGS Airports
Slide 89: Asset Overview
AIRPORTS | AGS AIRPORTS 89 Asset Overview Locations SOUTHAMPTON ABERDEEN AIRPORT GLASGOW AIRPORT AIRPORT Aberdeen Gateway to Europe’s Ferrovial Share – 50% 50% 50% Glasgow Energy Capital and Equity Accounted Scotland’s principal key to local economic Glasgow Location Aberdeen (UK) Glasgow (UK) South
Slide 90: Historical Data
AIRPORTS | AGS AIRPORTS 90 Historical Data Revenues (£mn) Adjusted EBITDA 1 (£mn) 209 213 217 92 97 94 198 67 167 47 71 87 -6 -25 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 Glasgow Aberdeen Southampton Glasgow Aberdeen Southampton Traffic (million pax) Dividends pay by the
Slide 91: Revenues
AIRPORTS | AGS AIRPORTS 91 Revenues CHARGES BASED ON THE NUMBER OF DEPARTING PASSENGERS 1 PASSENGER CONCESSION FEES FROM RETAIL RETAIL AND COMMERCIAL CONCESSIONARIES AT AROUND LEVIED ACCORDING TO WEIGHT AIRCRAFT AIRPORTS RECOGNISED ON LANDING LANDING LEVIED ACCORDING TO WEIGHT AIRCRAFT CAR PARKING O
Slide 92: AGS refinancing
AIRPORTS | AGS AIRPORTS 92 AGS refinancing Bank facility refinancing Issuer AGS Airports Limited (“AGS”) Sponsors Ferrovial Airports & Macquarie AGS Refinancing GBP 646.4 million term loan, a GBP 50 million capital expenditure facility, On March 14th, 2024, AGS Airports Limited (“AGS”) Structure com
Slide 93: Public Information
AIRPORTS | AGS AIRPORTS 93 Public Information Information Reported Information » Companies House, the official agency that incorporates and » Integrated Annual Reports dissolves limited companies in the UK. More information is available in AGS Airports Company House webpage » Corporate Structure » G
Slide 94: Dalaman Airport
94 4 Dalaman Airport
Slide 95: Asset Overview
AIRPORTS | DALAMAN AIRPORT 95 Asset Overview It offers close proximity to tourist attractions, One of the most attractive tourist regions Ferrovial Share – Globally consolidated 60% contributing to the in Türkiye economic development of the region by offering Location Dalaman (Türkiye) leisure optio
Slide 96: Demand Profile
AIRPORTS | DALAMAN AIRPORT 96 Demand Profile Traffic profile (mn passengers)* During the 2023: 5.2 • 5.2 million passengers 4.9 4.5 passed through the airport (2022: 4.5 million), representing 2.3 3.5 +15.5% versus 2022 and 3.3 3 +6.8% versus 2019 1.6 0.9 • International traffic 0.8 represented 66%
Slide 97: Revenues and Financial Profile
AIRPORTS | DALAMAN AIRPORT 97 Revenues and Financial Profile LIMITED EXPOSURE TO TURKISH GDP AND FX C. 88% OF REVENUES ARE CORRESPOND TO THE CONCESSIONS GENERATED IN EURO Aero Non-Aero AND/OR RENTS RECEIVED FROM THE DUTY-FREE, RETAIL, SERVICES, PASSENGER CHARGES ARE Revenues Revenues ADVERTISING, AN
Slide 98: Public Information
AIRPORTS | DALAMAN AIRPORT 98 Public Information Information Reported Information » DHMI, General Directorate of State Airports Authority » Integrated Annual Reports responsible for the management of Turkish airports and » Corporate Structure the regulation and control of Turkish airspace » General
Slide 99: Construction
CONSTRUCTION
Slide 100: Key to the development of greenfield projects
100 Key to the development of greenfield projects. Focus on markets with a commitment to infrastructure development f. construction webber Experts in the design and construction of civil Supporting other A leading construction Capabilities built Strong local bases Managing and works, buildings, indu
Slide 101: Financial Profile
101 3 FINANCIAL PROFILE Debt structure Cash Flow Details Historical Financial Data
Slide 102: Financial structure: Investment grade at corporate level & non-recourse debt at project level
102 FINANCIAL PROFILE | DEBT STRUCTURE Financial structure: Investment grade at corporate level & non-recourse debt at infrastructure project level CORPORATE: STRONG BALANCE SHEET PROVIDES RESILIENCE AND OPTIONALITY FY 2023 figures EX-INFRASTRUCTURE GLOBAL PROJECT COMPANIES -€1.1 B BBB 3 YEARS 92.5%
Slide 103: Corporate rating - debt maturity profile
103 FINANCIAL PROFILE | DEBT STRUCTURE Corporate rating - debt maturity profile DIVERSIFIED FUNDING SOURCES WELL SPREAD OVER TIME FINANCING SOURCES Loans 820 794 10% ECP DEBT Sustainability 15% 3 years 755 Linked Bond PROFILE AVERAGE 15% EURmn MATURITY 501 500 EUR3.4bn Bonds 66 0 0 0 60% 2024 2025 2
Slide 104: Credit rating agencies' metrics
104 FINANCIAL PROFILE | DEBT STRUCTURE Credit rating agencies’ metrics NET DEBT/ADJ. EBITDA Rating Agencies’ Adj. Rating Agencies measure EBITDA considers their debt ratios looking Construction Adjusted at the ex-infrastructure EBITDA & dividends RATING OUTLOOK projects debt from infrastructure asse
Slide 105: Sustainability-linked bond increasing importance of sustainability for financial strategy
105 FINANCIAL PROFILE | DEBT STRUCTURE Sustainability-linked bond increasing importance of sustainability for financial strategy FERROVIAL INTENDS TO CONNECT ALL FINANCINGS WITH ITS SUSTAINABILITY GOALS FIRST-EVER EUR500mn 4.375% 2030 2 SUSTAINABILITY SUSTAINABILITY NOMINAL VALUE COUPON MATURITY LIN
Slide 106: Cash flows from operating activities ex-infrastructure project companies
106 FINANCIAL PROFILE | CASH FLOW DETAILS Cash flows from operating activities ex-infrastructure project companies1 EURmn 1,076 946 995 999 6 889 134 839 341 29 237 810 132 290 183 340 607 704 267 572 3 584 255 277 10 191 469 395 494 289 358 388 302 396 296 93 390 77 227 236 272 245 247 160 134 132
Slide 107: Dividends from projects
107 FINANCIAL PROFILE | CASH FLOW DETAILS Dividends from projects DIVIDENDS FROM 26 EURmn TOLL ROADS PROJECTS 729 741 EURmn 251 30 19 47 6 5 85 37 166 28 615 623 31 109 45 167 23 92 19 31 25 46 15 109 553 183 550 25 53 131 309 281 33 224 242 244 262 273 237 5 160 164 477 477 43 475 6 458 3 49 2014 2
Slide 108: Cash flows from investing activities ex-infrastructure project companies
108 FINANCIAL PROFILE | CASH FLOW DETAILS Cash flows from investing activities ex-infrastructure project companies INVESMENTS EURmn 1,112 985 72 68 54 EURmn 509 856 113 Construction & 78 Services Investmens 186 581 include CAPEX 1 864 and M&A operations 226 374 706 355 14 4 332 1,621 120 1 4 3 295 2
Slide 109: Reconciliation of Consolidated Net Debt to our cash and cash equivalents
109 FINANCIAL PROFILE | CONSOLIDATED NET DEBT DETAILS Reconciliation of Consolidated Net Debt to our cash and cash equivalents As of December 31, (in million of euros) 2023 2022 2021 2020 Cash and cash equivalents excluding infrastructure projects -4,585 -4,962 -5,329 -6,396 Short and long-term borr
Slide 110: Changes in Consolidated Net Debt in 2023
110 FINANCIAL PROFILE | CONSOLIDATED NET DEBT DETAILS Changes in Consolidated Net Debt in 2023 As of December 31, 2023 Change in Ex-infrastructure Infrastructure project Intercompany Consolidated Net project companies companies eliminations Debt (in million of euros) (1+2+3) (1) (2) (3) Cash flow fr
Slide 111: Changes in Consolidated Net Debt in 2022
111 FINANCIAL PROFILE | CONSOLIDATED NET DEBT DETAILS Changes in Consolidated Net Debt in 2022 As of December 31, 2022 Change in Ex-infrastructure Infrastructure project Intercompany Consolidated Net project companies companies eliminations Debt (in million of euros) (1+2+3) (1) (2) (3) Cash flow fr
Slide 112: Changes in Consolidated Net Debt in 2021
112 FINANCIAL PROFILE | CONSOLIDATED NET DEBT DETAILS Changes in Consolidated Net Debt in 2021 As of December 31, 2021 Change in Ex-infrastructure Infrastructure project Intercompany Consolidated Net project companies companies eliminations Debt (in million of euros) (1+2+3) (1) (2) (3) Cash flow fr
Slide 113: Revenues
113 FINANCIAL PROFILE | HISTORICAL FINANCIAL DATA Revenues 2023 REVENUES EURmn BY BUSINESS DIVISION 12,208 1% 4% -1% SERVICES 10,759 CLASIFIED AS 13% 9,701 DISCONTIUNED ACTIVITY 8,802 8,514 IN 2018 7,551 6,778 6,341 83% 6,054 5,737 Construction Toll Roads Airports Energy Others BY GEOGRAPHY 13% 2014
Slide 114: Adjusted EBITDA
114 FINANCIAL PROFILE | HISTORICAL FINANCIAL DATA ADJUSTED EBITDA1 2023 ADJUSTED EBITDA EURmn BY BUSINESS DIVISION Energy: 10 SERVICES Airports: 22 1,027 CLASIFIED AS 991 983 944 932 DISCONTIUNED ACTIVITY Toll Roads: 799 IN 2018 11.6% 11.2% 728 10.6% 596 9.6% 484 Construction: 218 8.8% 409 8.8% 8.4%
Slide 115: ESG
115 4 ESG Environment Social Governance Note: See Integrated Annual Report of Ferrovial 2023 for further information.
Slide 116: Sustainability at the core of our strategy
116 ESG Sustainability at the core of our strategy Deliver our towards net-zero ambition by 2050by setting decarbonization targets, MITIGATE ENVIRONMENTAL developing efficient, low-carbon infrastructures and sustainable business ENVIRONMENTAL FOOTPRINT & TAKE ADVANTAGE OF opportunities while impleme
Slide 117: ESG targets
117 ESG ESG targets SUSTAINABILITY STRATEGY KPI SDG 2023 Final Target Horizon -35.3% 2030 1. GHG emissions: Scope 1&2 absolute emissions (tCO2)* -45.6% (vs 2009) (carbon neutral by 2050) -20% 2. GHG emissions: Scope 3 absolute emissions (tCO2) -28.9% 2030 (vs 2012) 3. Renewable electricity consumpti
Slide 118: ESG ratings in 2023
118 ESG ESG ratings in 2023 FERROVIAL’S SUSTAINABILITY PERFORMANCE HIGHLY RANKED BY ESG RATING AGENCIES 22 years in a row 20th consecutive year Rating: 61/100 Scored: 75/100 Score: 3.8/5 Euronext-Vigeo Europe 120 2nd position in DJSI Index 14th consecutive year in CDP Climate 1st time in CDP Water 1
Slide 119: Environment
119 ESG Environment Carbon Neutrality Emissions reduction towards Net Zero Management of risks Adopter of TFND, targets according to by 2050 & opportunities seeking to address Aligning the the Science-Based 100% renewable regarding Climate the crisis of Strategy with the Targets initiative for elect
Slide 120: Emission reduction targets approved by the science-based targets initiative
120 ESG | ENVIRONMENT Emission reduction targets approved by the science-based targets initiative » Following the roadmap set forth to reduce emissions in Scopes 1, 2 & 3, and complying with the reduction goals for 2030 that were approved by the SBTi. » Ferrovial was the 1st company in its sector wo
Slide 121: Ferrovial's 2023 greenhouse gas emissions
121 ESG | ENVIRONMENT Ferrovial’s 2023 greenhouse gas emissions SCOPE 1 Direct emissions from Ferrovial’s 7.1% owned & controlled resources Emissions avoided1 in 2023 4,206,386 SCOPE 2 585,028 tCO2 e Indirect emissions 0.6% tCO2 e Scope 1 & 2 & 3 from the generation in absolute terms of purchased en
Slide 122: Reducing carbon footprint – Scope 1 & 2
122 ESG | ENVIRONMENT Reducing carbon footprint – Scope 1 & 2 SWITCHING TO RENEWABLE ENERGY » Self-generation & renewable energy procurement (100% of Electricity coming from renewable sources target for 2025) » Promotion of the purchase of renewable sourced energy » Achieve a 33% reduction in vehicl
Slide 123: Deep Decarbonization Path for scope 1 & 2
123 ESG | ENVIRONMENT Deep Decarbonization Path for scope 1 & 2 The Deep Decarbonization Path outlines the roadmap to achieve the emission reduction target by 2030, in accordance with the SBTi initiative, and neutrality by 2050. Emission reduction targets Offsetting emissions Year Reduction Remanent
Slide 124: Scope 3
124 ESG | ENVIRONMENT Scope 3 Upstream 1,830,671 Downstream 2,048,141 3,878,812 Scope 3 (tCO2 e) f f Purchased goods & services Capital Upstream Other Investments Use of sold End of life 18.7% goods transportation upstream 37.9% product treatment of Toll Roads 11.7% & distribution impacts1 14.6% sol
Slide 125: Water footprint
125 ESG | ENVIRONMENT Water footprint + Water Treatment Index Water Access Index Ferrovial has developed a methodology to quantify the impact of its activity on water -20% Impact of water treatment plant processes on the Impact of water footprint in water supply projects for communities in developin
Slide 126: Circular economy
126 ESG | ENVIRONMENT Circular economy Ferrovial is consolidating the incorporation of circular economy principles in its processes, products and services. CIRCULAR ECONOMY PLAN ENERGY WASTE WATER MATERIALS Working on improving Prioritizing the Increasing efficiency in Focusing on the energy efficie
Slide 127: Developing people to create future challenges
127 ESG | PEOPLE Developing people to create future challenges 63,070 NUMBER OF 24,191 24,799 EMPLOYEES WOMEN IN LEADERSHIP POSITIONS Men Women 64% 83% 83% 24% 30% 2024 TARGET 36% 17% 17% 2021 2022 2023 BY AGE BY COUNTRY 127
Slide 128: Risk-free environment
128 ESG | HEALTH, SAFETY & WELLBEING Risk-free environment SERIOUS & FATAL ACCIDENTS (SIF**) Frequency Rate Evolution* FREQUENCY RATE 23.4 -80% -20.3% vs 2014 vs 2022 20.0 15.0 13.6 12.2 10.3 9.2 8.8 HOURS OF TRAINING IN HEALTH & SAFETY 4.7 258,908 3.2 2014 2015 2016 2017 2018 2019 2020 2021 2022 20
Slide 129: Positive impact on Communities
129 ESG | COMMUNITY Positive impact on Communities COMMUNITY SUPPORT PROJECTS Ferrovial maintains a strong commitment to society, especially to local communities. Its aim is not only to respect, but also, to support and promote human rights to prevent and mitigate any potential negative impact, but
Slide 130: 75% of independent non-executive directors
130 ESG | BOARD MEMBERS 75% of independent non- executive directors 12 DIRECTORS 33% FEMALE 9 INDEPENDET 6 NATIONALITIES Every 3 years 28.9% BOARD MEMBERS VOTING RIGHTS HELD REPRESENTATION DIRECTORS Spanish, Australian, Danish, REELECTION BY THE BOARD German, American & Italian RAFAEL ÓSCAR IGNACIO
Slide 131: Board composition with strong skills set & experience
131 ESG | BOARD OF DIRECTORS Board composition with strong skills set & experience
Slide 132: Diverse & specialized board committees to support the board in its tasks
132 ESG | BOARD COMMITTEES Diverse & specialized board committees to support the board in its tasks Executive Committee Audit & Control Committee* Nomination & Remuneration Committee* Pursuant to Dutch law and the Articles of Association, the Board may allocate its Interaction with the independent a
Slide 133: Remuneration rewards sustainable value creation to the shareholder
133 ESG | SENIOR MANAGEMENT REMUNERATION Remuneration rewards 2023 FIXED REMUNERATION 2023 REMUNERATION VARIABLE REMUNERATION LONG TERM INCENTIVE PLANS sustainable value CHAIRMAN €1,500,000 Long-Term Incentive Fixed Target Max. Max. creation to the 150% 29% 16% 125% 190% Annual Variable of fixed rem
Slide 134: Annual variable remuneration including ESG performance indicators
134 ESG | SENIOR MANAGEMENT REMUNERATION Annual variable remuneration including ESG performance indicators CHAIRMAN CEO 80% QUANTITATIVE 20% QUALITATIVE 70% QUANTITATIVE 30% QUALITATIVE TARGETS TARGETS & ESG TARGETS TARGETS & ESG NET INCOME CASH FLOW NET INCOME CASH FLOW €2,808,800 1,361,300 1,113,8
Slide 135: Share Price
135 5 SHARE PRICE Share price performance Shareholder Distribution
Slide 136: Ferrovial shares at a glance
136 SHARE PRICE | SHARE PRICE PERFORMANCE Ferrovial shares at a glance 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 PRICE AT YEAR-END € 33.02 24.47 27.56 22.60 26.97 17.70 18.93 17.00 20.86 16.43 ANNUAL HIGH € 33.02 27.72 27.75 30.45 27.21 19.78 20.75 20.71 23.32 16.72 ANNUAL LOW € 24.53 22.82
Slide 137: Shareholder distribution
137 SHARE PRICE Shareholder distribution DIVIDEND PER SHARE EUR EURmn 578 0.719 0.719 0.721 0.719 0.715 0.672 0.702 0.692 544 532 57 520 520 520 510 0.512 0.502 463 235 265 377 317 280 282 302 388 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 250 255 Since 2014, Ferrovial has distributed dividen
Slide 138: Appendix
138 6 APPENDIX
Slide 139: Equity analysts' valuation methodology
139 Equity analysts’ valuation methodology SUM OF THE PARTS TOLL ROADS: Equity value for each asset • 407ETR & MLs (and others): DDM/DCF Equity Value at FER’s stake • IRB at Market Price (listed company) AIRPORTS: Equity value for each asset • Heathrow (regulated asset): premium over RAB or DDM
Slide 140: Investor Relations
140 Investor Relations ir@ferrovial.com www.ferrovial.com ferrovial