Ferrovial N.v. · BME:FER
Ferrovial — FY2020 Earnings Presentation
29 slides from Ferrovial's earnings presentation, Feb 25, 2021
Slide 1: 2020 Results - For a world on the move
Bile For a world on the move 2020 Results 25 February 2021
Slide 2: Disclaimer
Disclaimer 2020 financial information included in this report has been impacted by the COVID-19 outbreak, mainly since the second half of March. Given the uncertainty regarding the speed and extent of the resumption in activity, it is not possible to predict how the health crisis will affect Ferrovi
Slide 3: 2020 Overview
020 OVERVIEW | TRAFFIC IMPACTED BY COVID- 19 BUT RESILIENT CONTRACTING PERFORMANCE : * Strong CF generation . Solid construction performance: high production levels & 2.3% EBIT margin * Infrastructure assets showed good performance when mobility restrictions were lifted Record steel) further zeeo FO
Slide 4: Dividends from projects, cash flow, divestments, net cash and liquidity
===: Dividends from = peas ppt as Bs Ab | Revenuss —— projects* OcF** casas €458mn €839mn aig <a Gross Divestments*** Net Cash**** ee = =€501mn €1,991mn Liquidity*** €7,964mn x ~ Se is *Dividends ‘mn Toll roads (€340mn), Airports (€29mn) and Services (€89mn). **Ex-infrastructure, pre-tax. ***Ex-infr
Slide 5: Developing & operating innovative, efficient and sustainable infrastructure
——- Developing & operating innovative, efficient and sustainable infrastructure, creating value for our stakeholders TOLL ROADS AIRPORTS CONSTRUCTION OTHER INFRA ASSETS FOCUS ON YELLOW-FIELDS & ENGINEERING CAPABILITIES ELECTRIFICATION, “4 MANAGED LANES OPERATIONAL TO DEVELOP COMPLEX WATER, MOBILITY
Slide 6: Sustainability Strategy
SUSTAINABILITY STRATEGY Sustainability Strategy fully aligned with Ferrovial business strategy FER Sustainability Strategy addresses main global challenges to turn them into business opportunities, creating value for stakeholders & working towards an innovative, inclusive, low-carbon and more sustai
Slide 7: Dividends from projects
• • ✓ ✓ • • • ✓ • ✓ • • • • • €mn Dec-20 Dec-19 407ETR 160 309 • HAH 29 145 AGS 0 17 • NTE 25 166 LBJ 109 0 Other projects*** 134 92 T o ta l d ivid e n d s * * * 45 8 729
Slide 8: Toll Roads - Solid recovery when restrictions are lifted
Toll Roads — SOLID RECOVERY WHEN RESTRICTIONS ARE LIFTED eRe Revenues EBITDA EBITDAmg Equity Accounted 2020 405 251 62.1% 62 % CH LFL -19.2% -22.9% 62.8% OPERATING RESULTS Revenues: COVID-19 impact on traffic, partially offset by higher toll rates & resilient heavy traffic = US:74% of revenues & 92%
Slide 9: Toronto - One of the strongest lockdowns globally
TOQRONTO — ONE OF THE STRONGEST LOCKDOWNS GLOBALLY During 2" lockdown, traffic not as negatively impacted as compared to the initial close last April 2020 Vaccinations at 2.5% (Feb 19" 2021) & estimated immunity at 8% 407ETR (monthly traffic) March 11 WHO declared COVID-19 Mid-August 2" wave % month
Slide 10: Dallas Fort Worth - Quick recovery when restrictions eased
DALLAS FORT WORTH — QUICK RECOVERY WHEN RESTRICTIONS EASED MANAGED LANES (monthly traffic) March 11 WHO declared COVID-19 Mid-June Mid-Aug/early-Sep 2nd wave % monthly var. aglobal pandemic Cases increased lows in cases declared YoY strictions Easing restrictions (Phase I-Il) 10% Kt aed Most busines
Slide 11: 407 ETR - Traffic impacted by severe restrictions
Equity method, FER 43% Toronto, Canad 4Q/7 E1R — TRAFFIC IMPACTED BY SEVERE RESTRICTIONS me CaO SCHEDULE 22 2020 % CH * No provisionregistered for S22 payments since pandemic was Traffic (VKT mn) 1,500 -45.3% declared (force majeure), following interpretation of contract Revenues 909 ~39.6% + Admini
Slide 12: 407 ETR - Traffic lever: population & economic growth
407 E)R — TRAFFIC LEVER: POPULATION & ECONOMIC GROWTH Greater Toronto and Hamilton Area x L -—_Prowncilly Sienitcant Emgloyment 200 J @ marten 2011 Poeuacon 2021 2041 Population Population Region of Durham 713,000 874,000 +2696 Region of York 41,203,000 4,480,000 City of Toronto 3,034,000 3,604,000
Slide 13: Traffic lever: e-commerce along the corridor
TRAFFIC LEVER: E-COMMERCE ALONG THE CORRIDOR 407 ETR serves the major eCommerce players in the GTHA a Lol © g _ —— a tat - i>) Bad I ted d, a z.. 6 © pres we ot int eCommerce expected to continue growing ahead Other impacts from e-commerce: Y Pattern changes: Shift of trips from weekends to weekdays
Slide 14: 407 ETR - Traffic lever: WFH vs flexible work
407 ETR — TRAFFIC LEVER: WFH VS FLEXIBLE WORK 14 Over 40% of business owners expect 100% of work done at the office post pandemic* Many more workers doing their jobs at home* But many businesses expect workers to be back in the office after the pandemic* Share of Workers Working From Home (%) Est. P
Slide 15: 407 ETR - Highway
407 ETR — 413 HIGHWAY GTA West - a proposed highway through the Green Belt and far from congested corridor GTA West Highway situated far from highly congested downtown... ... and through the unurbanized Green Belt - * Currently under environmental study (end 2022) * 10-15kms from segments C3 & C4 *
Slide 16: Managed Lanes - Traffic impact mitigated by vehicle mix & toll rates
Global Consolidation M. Lanes — TRAFFIC IMPACT MITIGATED BY VEHICLE MIX & TOLL RATES oN dsDem DIVIDENDS % change NTE LB) NTE35W LBJ distributed its first dividend of USD229mn (EUR109mn Transactions -26.1% -37.6% -14.3% FER's share). , Revenues 18.4% 31.8% 3.1% NTE distributed USD46mn (EUR25mn FER’s
Slide 17: Texas MLs - Traffic lever: population & economic growth
TEXAS MLs — TRAFFIC LEVER: POPULATION & ECONOMIC GROWTH Strong growth in population, economy & congestion expected Wise Denton) ali [comm el Congestion Index* L583, NTE, and much of NTE35W are in areas with severe congestion levels expected 5. Di Johnson\; MLs near some of the most populated areas i
Slide 18: Traffic lever: ecommerce & business development
TRAFFIC LEVER: ECOMMERCE & BUSINESS DEVELOPMENT Major warehouses in DFW area continue to increase alee > ee 7 @ usps o) XPO Logistics @ Brunt x Airport US eCommerce penetration could reach 30% of all sales by 2030** US eCommerce has tripled its share of retail sales: 5.1% in 2007 to 16% in 2019* eCo
Slide 19: Texas MLs - Traffic lever: WFH vs work flexibility
TEXAS MLs— TRAFFIC LEVER: WFH vs WORK FLEXIBILITY User profile & price flexibility to mitigate potential impact from WFH WFH PRE-COVID DURING & POST-COVID 8% worked only from home more than 2x/month* 19% * 40-50% of work force could WFH** 41% qoLe * During COVID-19 : 30-45% during peak COVID** 6% ¢
Slide 20: Heathrow - Lowest pax in 45Y but active liquidity management
OPERATIONAL RESULTS 22.1mn PAX (-72.7% 2020) Safety and security are the first priorities: = COVID-secure technologies and = Innovative testing solutions with more testing facilities available at the airport Consolidation of London operations: = Over 80% incumbent airlines build back = 8newentrants
Slide 21: Heathrow - Looking ahead
Heathrow — LOOKING AHEAD Equity method FER 25% Governmental , regulatory actions required to support traffic recovery OUTLOOK* * Traffic 37mn pax in 2021E (though uncertainty remains on traffic recovery) * No covenant breach expected in 2021 under severe but plausible scenario of 27mn pax, given add
Slide 22: AGS - Traffic weakness but swift management response
AGS — TRAFFIC WEAKNESS BUT SWIFT MANAGEMENT RESPONSE 2020 Traffic 3.3 Glasgow 19 Aberdeen 1.0 Southampton 03 TRAFFIC % CH -15.9% -78.0% -65.3% -83.4% * Traffic performance driven by continues lockdowns * Oil & Gas traffic resilience in Aberdeen * Southampton heavily impacted by Flybe’s collapse LIQU
Slide 23: Construction - High production rates, better EBIT & strong CF
HIGH PRODUCTION RATES, BETTER EBIT & STRONG CF High production levels (US & Poland) though additional costs. Better than forecasted EBIT margin (2.3% 2020 vs. 1% expected) despite COVID-19 impacts -€49mn at EBIT level: " Additional costs on lockouts & loss of efficiencies in critical paths, while ke
Slide 24: Services - Resilient operating performance & strong ACF
Services - RESILIENT OPERATING PERFORMANCE & STRONG ACF (EUR (discontinued activity) With COVID-19, authorities more committed to ensure essential services & reduce environmental impact of human activities. Strong support from authorities: tax deferrals, better collections & furloughs/ERTE programs.
Slide 25: Consolidated P&L
Consolidated P&L (Ut fowes:€UR PEL (EU Rar 2070 Ely Revenues: (+9.9% LfL); Construction (+11.4% LfL) REVENUES 6,341 6,054 EBITDA: impacted by -€22mn restructuring costs Construction Provision (1Q 2019) -345 . ; . EBITDA 409 121 Disposals and impairments: Autema positive impact (€10mn) 2019 included
Slide 26: Net Debt evolution (ex-infrastructure)
Net Debt evolution (ex-infrastructure) ein Including discontinued activities (NCP €216mn) 458 NCP Dec'19 Dividends EBITDA* WC Taxes Investments Divestments Shareholder Other NCP Dec'20 from projects evolution Remuneration financing cash flows 2% * EBITDA excludes contribution from projects but it in
Slide 27: Limited short-term visibility but confident ahead
LIMITED SHORT-TERM VISIBILITY... .. BUT WE REMAIN CONFIDENT AHEAD * Long term infrastructure assets in growth areas Strategy focused on developing efficient, innovative and sustainable infrastructure * Value creation opportunities ahead: = Building on competitive advantages = Ready for attractive in
Slide 28: Q&A
Q&A
Slide 29: Ferrovial Investor Relations
ferrovial INVESTOR RELATIONS DEPARTMENT - C/ Principe de Vergara, 135 - 28002 MADRID (Spain) T: +34 91586 2730 F: +34 91586 28 69 e-mail: ir@ferrovial.com website: www.ferrovial.com Sustainability Award i EURONEXT Bronze Class 2021 VE re / 4 INDICES e M4 EUROPE120 S&P Global wioeo.ems FTSE4Good CLIM