Ferrovial N.v. · BME:FER
Ferrovial — Shareholder Meeting (April 2018)
90 slides from Ferrovial's shareholder meeting presentation, April 2018
Slide 1: General Shareholders' Meeting 2018
GENERAL SHAREHOLDERS’ MEETING 20 18
Slide 2: Rafael del Pino, Chairman
RAFAEL DEL PINO CHAIRMAN
Slide 3: General Shareholders' Meeting
GENERAL SHAREHOLDERS’ MEETING 20 18
Slide 4: Santiago Ortiz Vaamonde, Secretary of the Board
SANTIAGO ORTIZ VAAMONDE SECRETARY OF THE BOARD OF DIRECTORS
Slide 5: General Shareholders' Meeting
GENERAL SHAREHOLDERS’ MEETING 20 18
Slide 6: Agenda
AGENDA
Slide 7: Matters for approval
MATTERS FOR APPROVAL 1 Approval of financial statements 2 Application of results 3 Grant discharge to the Board of Directors 4 Reappointment of auditors 5 First scrip dividend through the issuance of ordinary shares 6 Second scrip dividend through the issuance of ordinary shares 7 Capital reduction
Slide 8: Matters for advisory vote and information
MATTERS FOR ADVISORY VOTE 9 Annual report on director remuneration MATTERS OF INFORMATION 10 Amendments to the Board of Directors Regulation
Slide 9: General Shareholders' Meeting
GENERAL SHAREHOLDERS’ MEETING 20 18
Slide 10: Quorum (provisional)
QUORUM (PROVISIONAL)
Slide 11: General Shareholders' Meeting
GENERAL SHAREHOLDERS’ MEETING 20 18
Slide 12: Rafael del Pino, Chairman
RAFAEL DEL PINO CHAIRMAN
Slide 13: The Year at Ferrovial
THE YEAR AT FERROVIAL
Slide 14: 2017 highlights
• Growth by the main infrastructure assets: • Strong net cash position • Higher traffic • Improved revenues and EBITDA • New contracts in the US and Australia • Dividend growth • Shareholder remuneration • Integration of Broadspectrum • Profitability in Services and Construction • Excellent operatin
Slide 15: Operating Results
ee nit | a innaasseeree SSneSee
Slide 16: Revenues, EBITDA, net profit
12,208 M€ 932 M€ 454 M€ +13.5% -1.2% +21% REVENUES EBITDA NET PROFIT 2017 2017 2017
Slide 17: Financial Position
FINANCIAL POSITION
Slide 18: Net cash position and consolidated net debt
1,341 M€ 3,463 M€ +92.4% -19% NET CASH CONSOLIDATED POSITION NET DEBT Excl. infrastructure projects Incl. infrastructure projects
Slide 19: Cash Flow and Investment
CASH FLOW AND INVESTMENT
Slide 20: Operating cash flow and investment
999 M€ OPERATING CASH FLOW 355 M€ INVESTMENT Excl. projects Excl. projects 396 M€ SERVICES 154 M€ TOLL ROADS 134 M€ CONSTRUCTION 139 M€ SERVICES 277M€ TOLL ROADS DIVIDENDS 55 M€ CONSTRUCTION AIRPORTS DIVIDENDS 237M€ 4 M€ AIRPORTS
Slide 21: Backlog 32,063 M€
BACKLOG 32,063 M€
Slide 22: Backlog: Services and Construction
20,918 M€ 11,145 M€ SERVICES(1) CONSTRUCTION • Western Roads Upgrade Project, road maintenance •I-66 in Virginia (USA) in Western Melbourne (Australia) •Denver Airport Great Hall Project (USA) • Renewal of on-board services for Renfe (Spain) •Grand Parkway in Houston (USA) • Maintenance of Mancheste
Slide 23: International Expansion
INTERNATIONAL EXPANSION
Slide 24: International share of revenues, EBITDA, backlog
FULLY CONSOLIDATED PROPORTIONATELY CONSOLIDATED 77 % 55 % 80 % 79 % 76 % REVENUES EBITDA BACKLOG REVENUES EBITDA
Slide 25: Funding Sources
FUNDING SOURCES
Slide 26: Bond issues and refinancing
• Corporate bond issues: • 407 ETR bond issue: • Perpetual hybrid bond: 500 M€, 2.125% • Senior bond 250 MCAD, 3.43% • Corporate bond: 500 M€, 1.375% • Bond 500 MCAD, 3.65% • Bond 300 MCAD, 2.47% • AGS refinancing: 793 M£
Slide 27: Share Performance
SHARE PERFORMANCE
Slide 28: Shareholder return
SHAREHOLDER RETURN -11.8% +15.7% FERROVIAL +7.4% IBEX35 -5.3% D16 J F M A M J J A S O N D17 4/4/2018 2017 2018
Slide 29: Shareholder Remuneration
SHAREHOLDER REMUNERATION
Slide 30: Shareholder remuneration 2017 and 2018
SHAREHOLDER PROPOSED SHAREHOLDER REMUNERATION IN 2017 REMUNERATION IN 2018 € / share € / share Scrip dividend (May 2017) 0.315 Projected scrip dividend 0.312 Scrip dividend (November 2017) 0.404 Projected scrip dividend 0.402 TOTAL 0.719 TOTAL 0.714 Buyback of up to 19 M shares capped at 275 M€ Buyb
Slide 31: Corporate Governance
CORPORATE GOVERNANCE
Slide 32: Compliance model and Board composition
• Ferrovial compliance model: • Composition of the Board of Directors: • Partner integrity due diligence procedure • Hanne Sørensen appointment as independent director
Slide 33: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY
Slide 34: Sustainability index memberships
MEMBER OF Dow Jones ROBECOSAM Sustainability Indices « Sustainability Award In Collaboration with RobecoSAM «® Silver Class 2018 Z MSCI* FTSE4Good Member 2016/2017 STO ESG LEADERS INDICES Wepp DISCLOSURE INSIGHT ACTION 2017 Constituent MSCI Global Sustainability Indexes Network Spain WE SUPPORT
Slide 35: Awards and Distinctions
AWARDS AND DISTINCTIONS
Slide 36: Awards and distinctions
Vocento business award “Finance for the Future Most Innovative Company "Best Woman Contractor" in the Social Outreach Awards 2017”, for the 2017 category Integrated Annual Report "Best Woman Civil Engineer" FERROVIAL FERROVIAL FERROVIAL FERROVIAL Toowoomba Second Heathrow: “Best Airport in Honorable
Slide 37: General Shareholders' Meeting
GENERAL SHAREHOLDERS’ MEETING 20 18
Slide 38: Santiago Fernández Valbuena, Audit Committee Chairman
SANTIAGO FERNÁNDEZ VALBUENA CHAIRMAN OF THE AUDIT AND CONTROL COMMITTEE
Slide 39: Audit and Control Committee
AUDIT AND CONTROL COMMITTEE
Slide 40: Audit committee functions and activities
• Functions • Activities in connection with: • Financial reporting • Members • External auditors • Internal control system • Internal audit • Risk control • Corporate governance and compliance
Slide 41: General Shareholders' Meeting
GENERAL SHAREHOLDERS’ MEETING 20 18
Slide 42: Íñigo Meirás, Chief Executive Officer
ÍÑIGO MEIRÁS CHIEF EXECUTIVE OFFICER
Slide 43: Results 2017
RESULTS 2017
Slide 44: 2017 key highlights
• Growth by the main assets • Cash flow and financial position • Increase in traffic • Record backlog in Construction • Broadspectrum integration • Sustainability and Innovation
Slide 45: Results
RESULTS M€ 2017 2016 Change Change M€ 2017 2016 17-16 17-16 Revenues 12,208 10,759 +13.5% Construction backlog 11,145 9,088 +22.6% EBITDA 932 944 -1.2 % Services backlog 20,918 24,431 -14.4 % EBIT 557 602 -7.4% Net profit 454 376 +21%
Slide 46: Traffic
TRAFFIC TOLL ROADS AIRPORTS • 407 ETR (+2.6%) • Heathrow (+3.1%) • NTE (+10.9%) • AGS (+4.9%) • LBJ Express (+9.3%) • Glasgow (+5.7%) • Ausol I (+10.3%) • Aberdeen (+1.9%) • Azores (+6.7%) • Southampton (+6.1%)
Slide 47: Acquisitions and divestments
ACQUISITIONS AND DIVESTMENTS • Buyout of the Fire & Police Pension Scheme stakes: • Asset rotation: • NTE (6.3%): 62.9% • Budimex (3.9%): 59 M€ • LBJ (3.6%): 54.6% • Norte Litoral (51%): 104 M€ • Algarve (49%): 58 M€
Slide 48: Cash flow
CASH FLOW 38% 26% SERVICES TOLL ROADS OPERATING CASH FLOW Excl. infrastructure projects Services 396 Construction 134 Toll Roads (dividends) 277 Airports (dividends) 237 Others (-46) 13% 23% TOTAL 999 M€ CONSTRUCTION AIRPORTS
Slide 49: Shareholder remuneration
SHAREHOLDER REMUNERATION 520 M€ +15.7 % DIVIDENDS AND SHAREHOLDER SHARE RETURN (TSR) BUYBACKS
Slide 50: Value creation: market capitalization
VALUE CREATION 15,270 Market capitalization M€ 13,858 12,029 12,450 10,317 2013 2014 2015 2016 2017
Slide 51: Analyst valuation
ANALYST VALUATION 8% 15% 64% 13% CONSTRUCTION SERVICES TOLL ROADS SPAIN 13% 87% AIRPORTS INTERNATIONAL
Slide 52: Contribution by business
CONTRIBUTION, BY BUSINESS 58% 4% 45% 34% SERVICES TOLL ROADS SERVICES TOLL ROADS 12,208M€ 932M€ REVENUES EBITDA 38% 21% CONSTRUCTION CONSTRUCTION
Slide 53: Geographic distribution
GEOGRAPHIC DISTRIBUTION 21% 5% 23% 10% 6% 45% AUSTRALIA OTHERS SPAIN AUSTRALIA OTHERS SPAIN 12,208M€ 932M€ REVENUES EBITDA 13% 14% 24% 16% 20% 3% POLAND USA AND CANADA UNITED KINGDOM POLAND USA AND CANADA UNITED KINGDOM 77% outside Spain 55% outside Spain
Slide 54: Contribution by business, proportionately consolidated
CONTRIBUTION, BY BUSINESS PROPORTIONATELY CONSOLIDATED 56% 7% 7% 25% 36% SERVICES TOLL ROADS AIRPORTS SERVICES TOLL ROADS 13,222M€ 1,733M€ REVENUES EBITDA 30% 8% 31% CONSTRUCTION CONSTRUCTION AIRPORTS
Slide 55: Geographic distribution, proportionately consolidated
GEOGRAPHIC DISTRIBUTION PROPORTIONATELY CONSOLIDATED 19% 6% 21% 5% 6% 24% AUSTRALIA OTHERS SPAIN POLAND AUSTRALIA SPAIN 13,222M€ 1,733M€ REVENUES EBITDA 7% 15% 32% 28% 37% POLAND USA AND CANADA UNITED KINGDOM USA AND CANADA UNITED KINGDOM 79% outside Spain 76% outside Spain
Slide 56: Net cash position
NET CASH POSITION EXCL. INFRASTRUCTURE PROJECTS 1,675 1,632 1,514 1,341 841 697 M€ 2013 2014 2015 2016 2017
Slide 57: Milestones
MILESTONES
Slide 58: 2017 milestones
AUSTRALIA AND NEW ZEALAND PORTUGAL USA USA Netflow consortium, with Plenary, for Sale of 51% Upgrade and operation Financial close infrastructure NORTE LITORAL DENVER AIRPORT 650 M$ I-66 VIRGINIA 3,550 M$ CINTRA POLAND PORTUGAL AUSTRALIA UNITED KINGDOM Contract Sale of 49% Contract Refinancing ŁAGIE
Slide 59: Toll Roads
TOLL ROADS
Slide 60: Toll Roads: improving traffic
IMPROVING TRAFFIC • Dividends: 277 M€ • Acquisition of an additional stake (Managed Lanes, USA): • Positive traffic performance • NTE (+6.3%) • LBJ (+3.6%) • Strong revenue growth: • 407 ETR: +12% • Financial close: I-66 (Managed Lanes, USA) • NTE: +27% • LBJ: +33% • Open to traffic: • NTE 3B partly
Slide 61: Toll Roads results
RESULTS Change M€ 2017 2016 17-16 Revenues 461 486 -5.3 % EBITDA 320 297 +7.7% EBIT 247 214 +15.5% Dividends 277 290
Slide 62: Toll Roads revenues by geography
REVENUES, BY GEOGRAPHY PROPORTIONATELY CONSOLIDATED 11% 8% 24% PORTUGAL OTHERS SPAIN 866.7M€ 44% 13% CANADA USA 76% outside Spain
Slide 63: Airports
Me Ris 4 ye eae sin t
Slide 64: Growth in passenger numbers
GROWTH IN PASSENGER NUMBERS • HAH: • AGS: • New passenger record: 78 M (+3%) • New passenger record: 15.1 M (+5%) • EBITDA: +4.6% • EBITDA: +10.7% • Dividends: 153 M€ • Dividends: 84 M€ • Record levels of punctuality and passenger satisfaction: 4.2 (over 5) Denver airport: • Heathrow expansion: • Fu
Slide 65: Airports results: HAH and AGS
RESULTS HAH AGS Change Change M£ 2017 2016 M£ 2017 2016 17-16 17-16 Revenues 2,883 2,809 +2.6% Revenues 209 197 +6.3% EBITDA 1,760 1,683 +4.6% EBITDA 92 83 +10.7% Traffic (M.Pax) 78 75.7 +3.1% Traffic (M.Pax) 15 14 +4.9% Dividends 525 325 Dividends 146 64
Slide 66: Construction
CONSTRUCTION
Slide 67: Record backlog
RECORD BACKLOG • Record backlog: 11,145 M€ • Budimex, strong performance and solid growth: • Concentrated in strategic markets (89%): • Revenues: +15% • North America: 46%, double the 2016 backlog • EBITDA/Revenues: 9% • Poland: 22% • Backlog: +22% • Spain: 12% • UK and Australia: 9% • Larger new co
Slide 68: Construction results
RESULTS Change M€ 2017 2016 17-16 Revenues 4,628 4,194 +10.3% EBITDA 199 342 -41.8 % EBIT 162 313 -48.1 % Operating cash flow (excl. infra.) 134 245
Slide 69: Construction revenues by geography
REVENUES, BY GEOGRAPHY 6% 8% 17% 8% AUSTRALIA OTHERS SPAIN UNITED KINGDOM 4,628M€ 32% 2% 27% POLAND CANADA USA 83% outside Spain
Slide 70: Construction backlog by geography
BACKLOG, BY GEOGRAPHY 1% 7% 5% 12% 7% CHILE SLOVAKIA OTHERS SPAIN UNITED KINGDOM 11,145M€ 22% 1% 45% POLAND CANADA USA 88% outside Spain
Slide 71: Construction backlog
BACKLOG 11,145 8,731 9,088 7,867 8,091 M€ 2013 2014 2015 2016 2017
Slide 72: Services
SERVICES
Slide 73: Services: cash flow and growth
CASH FLOW • Focus on cash flow: 396 M€ • Positive impact of restructuring in the United • Positive trend in Spain: Kingdom: • Growth: +7.7% • Higher EBITDA: +113% • Stable margins • Selective bidding • Value-added projects (Mobility, Environment, • Complex trading environment (Birmingham) Industrial
Slide 74: Services results
RESULTS Change M€ 2017 2016 17-16 Revenues 7,069 6,078 +16.3% EBITDA 423 325 +30.2% EBIT 163 99 +64.1% Operating cash flow (excl. infra.) 396 395
Slide 75: Services revenues by geography
REVENUES, BY GEOGRAPHY 7% 27% OTHERS SPAIN 7,069M€ 31% 35% AUSTRALIA / UNITED KINGDOM NEW ZEALAND 73% outside Spain
Slide 76: Services backlog by geography
BACKLOG, BY GEOGRAPHY 8% 25% OTHERS SPAIN 20,918M€ 20% 47% AUSTRALIA / UNITED KINGDOM NEW ZEALAND 75% outside Spain
Slide 77: Services backlog
BACKLOG 24,431 22,369 22,800 20,918 17,749 M€ 2013 2014 2015 2016 2017
Slide 78: Priorities 2018
PRIORITIES 2018
Slide 79: 2017 summary: revenues, profit, backlog, net cash
BUSINESS NET PROFIT SOUND BACKLOG DEVELOPMENT REVENUES FINANCIAL +13.5 +21 POSITION 32,063 M€ % % 1,341 M€ 80% outside Spain USA Good operating 454 M€ Net cash Record backlog in AUSTRALIA performance excl. projects Construction CANADA
Slide 80: 2018 priorities
2018 PRIORITIES • Profitable growth • Innovation • Financial discipline • Sustainability • Operational excellence • People
Slide 81: Commitment to society
COMMITMENT TO SOCIETY -42 % -28.4 % >100 212,605 91 % Accident rate CO2 emissions R&D projects Beneficiaries of water Employee compared with 2014 since 2009 46.7 M€ invested and sanitation projects commitment HEALTH AND SAFETY SUSTAINABILITY INNOVATION CSR PEOPLE
Slide 82: General Shareholders' Meeting
GENERAL SHAREHOLDERS’ MEETING 20 18
Slide 83: Quorum
QUORUM
Slide 84: General Shareholders' Meeting
GENERAL SHAREHOLDERS’ MEETING 20 18
Slide 85: Shareholder Remarks
SHAREHOLDER REMARKS
Slide 86: General Shareholders' Meeting
GENERAL SHAREHOLDERS’ MEETING 20 18
Slide 87: Agenda
AGENDA
Slide 88: Matters for approval
MATTERS FOR APPROVAL 1 Approval of financial statements 2 Application of results 3 Grant discharge to the Board of Directors 4 Reappointment of auditors 5 First scrip dividend through the issuance of ordinary shares 6 Second scrip dividend through the issuance of ordinary shares 7 Capital reduction
Slide 89: Matters for advisory vote and information
MATTERS FOR ADVISORY VOTE 9 Annual report on director remuneration MATTERS OF INFORMATION 10 Amendments to the Board of Directors Regulation
Slide 90: General Shareholders' Meeting
GENERAL SHAREHOLDERS’ MEETING 20 18