Global Infrastructure

Transcription

1 Global Infrastructure

2 Disclaimer This document may contain statements that constitute forward looking statements about the Company. These statements are based on financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations, which refer to estimates regarding, among others, future growth in the different business lines and the global business, market share, financial results and other aspects of the activity and situation relating to the Company. Such forward looking statements, by its nature, are not guarantees of future performance and involve risks and uncertainties, and other important factors that could cause actual developments or results to differ from those expressed in these forward looking statements. Analysts and investors, and any other person or entity that may need to take decisions, or prepare or release opinions about the securities issued by the Company, are cautioned not to place undue reliance on those forward looking statements which speak only as of the date of this communication. They are all encouraged to consult the Company s communications and periodic filings made with the relevant securities markets regulators and, in particular, with the Spanish Securities Markets Regulator. 2

3 O v e r v i e w L o o k i n g A h e a d A p p e n d i x 3

4 Snapshot Net cash position at parent 1bn credit lines & cash in hand: 3,2bn liquidity No short term maturities (until 2015) Top class assets supporting dividend generation 22.5bn backlog (Construction & Services) 4

5 Net cash position at parent company E X I N F R A P R O J E C T S Sep 2012 NET CASH 898mn -3,064 x3.2 Net debt evolution ex-infra projects -1,987 x2.1-1,547 x1.5-1, x1.7 Net debt to EBITDA Net debt ( mn) M '12 Sep 2012 P R O J E C T S Debt allocated at project level NET DEBT 6,508mn TOLL ROADS Debt 6,141mn Projects under development not generating EBITDA mn Net debt SH NTE 385 LBJ 545 TOTAL 1,777 29% Of toll roads net debt 5

6 Liquidity and no short term maturities maturities Sep 2012 ( mn) 1, Liquidity position ( mn) 1,003 3,234 2,231 Total cash Undrawn lines Total liquidity Financial position (ex-infra projects) 6

7 Top class assets supporting cash generation 9M 12/11 ETR-407 HEATHROW Traffic +0.6% +0.6% Resilience EBITDA +9.2% +10.1% Rating A A- & Tariff review Freedom +7.5% + RPI% Growth Combined annual EBITDA over 1,600mn Local currency LHR LfL Probably, the two best infra assets in the world 7

8 Top class assets supporting growth Heathrow EBITDA evolution (GBP million) 570 1,045 GBP 9,300 mn issued since Resilience through the crisis Successful ongoing access to capital markets 407ETR EBITDA evolution (CAD million) CAD 2,950 mn issued since

9 Cash flow overview Cintra's dividends & BAA s dividends New projects equity INFRASTRUCTURE PROJECTS Focus on project s credit rating EBITDA resilient assets Well spread maturities 407< 5% per year BAA < 10% per year PARENT COMPANY Shareholders dividends Operating cash flow EXCL INFRA PROJECTS Focus on cash, not growth Commitment to strong BS Indebtedness target: Max. 2X EBITDA 9

10 Where do we generate cash flow? Construction and services OPC- capex, excluding acquisitions (PNI) and divestments (Swssiport) 36% 17% 35% R o W 13% Where do we get dividends from projects? 41% 47% R o W 12% Where do we invest equity in new projects? 77% 12% R o W 11% 2011 dividends BAA(e) dividends 10

11 How do we create value? Cash flow generation Asset rotation 11

12 Solid cash flow generation m Cash flow upstream from infrastructure projects Strong cash flow generation from Construction & Services Services Swissport Construction Resilient performance through the crisis *Before tax payment since

13 BAA: Markets keep missing SOTP supported by transactions values BAA s traded value materially above market consensus Edinburgh Airport 100% BAA / m Equity value Analysts consensus Implied valuation 5,527 5,715 EV/EBITDA x12.1 x16.7 4,176 2,387 Consensus Disposal price April Naples Airport EV/EBITDA x13.3 Aug 2010 Sept 2011 Oct 2011 July 2012 Aug 2012 Oct % divestment 10.62% & 5.72% divestment x7.0 (1) Analysts consensus on BAA: 100% Equity value. (2) Ferrovial sold 5.88% stake in BAA (GBP280mn) last 10th October 2011 to two investment vehicles managed by Alinda Capital Partners, (3) Ferrovial sold 10.62% stake in BAA (GBP 478mn) last 17th August 2012 to Qatar holding LLC. As part of the same transaction, other BAA shareholders sold a 9.38%. As a result, Qatar Holding LLC owns 20% and Ferrovial 39.37% of BAA. (4) Ferrovial sold 5.72% stake in BAA (GBP 257mn) last 31th October 2012 to Stable Investment Group. As part of the same transaction, other BAA shareholders sold a 4.28%. As a result, Stable owns 10% and Ferrovial 33.7% of BAA. Venice airport (Listed peer) Disposal price

14 Markets keep missing SOTP supported by transactions values 407 ETR Chilean Toll roads M45 Toll road m m m 6,734 +1% 6, % % 69 (1) (1) (1) 2007 Disposal price (2010) 2007 Disposal price (2010) 2007 Disposal price (2010) Value crystallization Disposal prices around 2007 peak valuation despite credit crisis Spanish Car parks m m Swissport % % (1) 2007 Disposal price (2009) (2) Consensus Disposal price (2011) (1) NAV published by Cintra in 2007, (2) Analyst EV consensus - Disposal price: 100% Equity value, EV for Swissport 14

15 O v e r v i e w L o o k i n g A h e a d A p p e n d i x 15

16 What have we done in 2012? Operational Growth (Tariffs) Heathrow +12.7% 407ETR +8% New Contracts 407ETR extension Sheffield maintenance Managed Lanes (under construction) Balance Sheet BAA Initial dividend 407ETR dividend LT bond issuance 16

17 Looking ahead Value creation in volatile times 17

18 Wider value proposition Intelligent cities Sheffield GBP2.0bn, Birmingham GBP2.7bn / 25 years Challenging environment Dissatisfied citizens Example: Spanish cities 1) Economic Limited economic growth Credit and liquidity shortages Public resources constraints & more demanding society Citizen Satisfaction (%) Environmental Regulation More responsible society Socio-demographic Urban population Unemployment Budget per citizen (EUR) 1) Waste management and collection city spend and citizen satisfaction (2010) Source: United Nations, OCU, Ferrovial Services analysis 18

19 Wider value proposition Managed lanes Express Tollway within an Existing Highway Free Lanes New Tolled Lanes Speed >50mph Free Lanes A solution to congestion on existing urban corridors by means of Active management of newly added capacity through tolling 19

20 Summary Net cash position / No short term maturities / Ample liquidity available C O N S T R U C T I O N T O L L R O A D S S E R V I C E S A I R P O R T S Strong backlog Margin vs. growth Selective exposure to emerging economies World class player Dividends from 407 & BAA Attractive pipeline of projects 20

21 Global Infrastructure 21

22 A p p e n d i x 9 M R e s u l t s I n t r o d u c t i o n t o E T R T o l l r o a d M a n a g e d L a n e s T o l l r o a d s R e s u l t s 22

23 9M 2012 results EUR MN Revenues EBITDA SEP 12 5, SEP 11 5, CHG.% +2.5% +10.3% L-f-L% +0.5% +8.6% Construction Airports Toll Roads Services Others Total SEP 12 SEP 11 CHG.-% L-f-L% 3, , , , , , n.s EBITDA margin 11.7% 10.8% Period depreciation SEP 12 SEP 11 CHG.% L-f-L% EBIT EBIT margin Disposals & Impairments % % % +8.7% Construction Airports Toll Roads Services Others Total n.s Financial results % Equity-accounted affiliates SEP 12 DEC 11 VAR% EBT Corporate income tax Construction backlog Services backlog Traffic evolution 9,063 13,397 SEP 12 9,997 12,425 SEP VAR% CONSOLIDATED NET INCOME Minorities NET INCOME ATTRIBUTED ETR-407 Chicago Skyway Indiana Toll Road Autema Ausol I Ausol II BAA (million passengers) 1,745,396 42,803 27,749 15,119 13,420 14, ,734,672 42,680 27,441 19,224 14,812 16,

24 A p p e n d i x 9 M R e s u l t s I n t r o d u c t i o n t o E T R T o l l r o a d M a n a g e d L a n e s T o l l r o a d s R e s u l t s 24

25 407 ETR Would you buy this company...? Shareholder's fund Debt , : 27x Debt/Ebitda 1H ,568 Accounting losses High debt Figures in million $CAN 25

26 407 ETR Ferrovial bought this company... C a s h g e n e r a t i o n ( ) 407 ETR V a l u a t i o n ( % ) Initial equity investment (62%) (326mn) 100% pay-back 6,625 Dividends (00-11) 576mn 10% disposal 640mn first 10 years 13x NET CASH IN 890mn Valuation x * M a t u r i t y years to maturity Strong dividend flow Equity valuation sharp increase * December 11 analysts consensus 26

27 407ETR Location Area of expansion 407 East extension High density population area Ring road of Toronto 108 km

28 407 ETR All Electronic Roadside Tolling System 28

29 Fast Safe Reliable 407 ETR LOCATION Greater Toronto Area 23% of Canada population HIGH HOUSEHOLD INCOME 46% higher than Canada average SPEED Alternatives routes 40kph vs 100kph at 407 NO REGULATORY REVIEWS During concession life (99 years) TRAFFIC Alternatives routes are highly congested TOLL RATE HIGH FLEXIBILITY Including segment, direction, time of the day NON-STOP TOLL FACILITY Fully electronic with interchanges every 3km FAST Reliable travel times 29

30 407 ETR Financial overview ($CAD million) Revenues Capital Expenditure CAGR: 8.2% years to maturity OPEX Dividends 104 CAGR: 2.6% % pay-back in first 10 years % EBITDA CAGR: 9.8% 79% 77% 76% EBITDA % % 80% Free-tariff revision 8% CAGR 02-11* 27 Debt / EBITDA X * Tariff increase for light Vehicles in Peak hours regular zone (%)

31 Recurrent presence in the bond market Extending maturities at historically low cost CAD 2,950mn issued since ,49% 3,58% Maturity 40 years ,58% 1,70% Spread 1,56% 1,60% Yearly average maturity: Only 3% of total debt

32 A p p e n d i x 9 M R e s u l t s I n t r o d u c t i o n t o E T R T o l l r o a d M a n a g e d L a n e s T o l l r o a d s R e s u l t s 32

33 Managed Lanes New assets landmark Express Tollway within an Existing Highway Free Lanes Tolled Lanes Speed >50mph Free Lanes A solution to congestion on existing urban corridors by means of Active management of newly added capacity through tolling 33

34 Managed Lanes Level of demand NTE (untolled) 407ETR (tolled) Peak period Time of the day Westbound Eastbound Time of the day 34

35 Managed Lanes Travel time reliability (NTE) Based on NTE data ML will provide users a reliable and certain travel time 7 miles Travel Time (Minutes) min Distance (miles) For a 7 mile trip, a user can save up to 30-40min in rush hour if using the ML (NTE Eastbound lanes) (*) Peak period observations 35

36 Managed Lanes Lyndon B Johnson KEY CHARACTERISTICS DESCRIPTION: IH 635 (Dallas County), the most populous county in Texas 108Km Electronic toll LENGTH: CONCESSION PERIOD: 13 mile section of the IH 635 and IH 35E 52 years TARIFF POLICY: Open Road Tolling System (no toll booths) with a dynamic tolling regime (every 5 minutes) to maintain at all times a minimum speed of 50 mph Heavy congested area, almost cars per day No toll-booths, fully electronic free flow tolling system Tollway within a freeway: Motorists will be provided with a choice of driving in non-tolled GP lanes or paying a toll to bypass such GP lanes Tolls setting to ensure minimum speed on new lanes 51% 42% 7% CINTRA SHAREHOLDERS STRUCTURE MERIDIAM FINANCIAL STRUCTURE DALLAS FIRE&POLICE PENSION SCHEME As demand grows and capacity becomes scarce, pricing power increases Physically separated from the GP lanes with controlled access 25% 54% 20% EQUITY DEBT PUBLIC FUNDS 36

37 Managed Lanes North Tarrant Express KEY CHARACTERISTICS DESCRIPTION: Dallas-Fort Worth Metroplex, Major thoroughfares between Fort Worth and DFW Airport LENGTH: 13 mile section (IH 820 & SH 183 in Tarrant County) CONCESSION PERIOD: 52 years TARIFF POLICY: Open Road Tolling System (no toll booths) with a dynamic tolling regime (every 5 minutes) to maintain at all times a minimum speed of 50 mph Heavy congested area, almost cars per day No toll-booths, fully electronic free flow tolling system Tollway within a freeway: Motorists will be provided with a choice of driving in non-tolled GP lanes or paying a toll to bypass such GP lanes Tolls setting to ensure minimum speed on new lanes As demand grows and capacity becomes scarce, pricing power increases Physically separated from the GP lanes with controlled access 57% 33% 10% CINTRA SHAREHOLDERS STRUCTURE MERIDIAM FINANCIAL STRUCTURE 21% 52% 27% DALLAS FIRE&POLICE PENSION SCHEME EQUITY DEBT PUBLIC FUNDS 37

38 Managed Lanes Financial Overview Financial details Financial details Total Investment: 2.05 bn Private Equity: 427 m Cintra: 243 m (57%) Meridiam: 141 m (33%) DPFPS: 43 m (10%) Total Debt: 1.05 bn PABs: TIFIA: 21% 52% 27% 400 m 650 m Public Funds: 537 m Total Investment: 2.7 bn 25% Private Equity: 665 m Cintra: 339 m (51%) Meridiam: 282 m (42%) DPFPS: 44 m (7%) 54% Total Debt: 1.47 bn PABs: 615 m TIFIA: 850 m 20% Public Funds: 496 m First combination of TIFIA and tax exempt PABs. First un-wrapped bond issuance for a toll road. First time TIFIA allowed additional debt to be raised beyond its approved federal subsidy cap. First time that a U.S.-based pension fund made a direct investment in a highway concession. First privately-financed road development project of its kind to reach financial close in Texas third big recent road project to reach financial close since Figures in US Dollars 38

39 A p p e n d i x 9 M R e s u l t s I n t r o d u c t i o n t o E T R T o l l r o a d M a n a g e d L a n e s T o l l r o a d s R e s u l t s 39

40 2011 Highlights (1) CASH GENERATION Activity cash flow generation: 1,446mn ex-infra projects 907mn net cash position ex-infra projects ACCESS TO CAPITAL MARKETS 2.1bn bond issuances in 2011 and 1.7bn issued YTD 2012 VALUE FROM DIVESTITURES Value obtained from divestitures beats market expectations BAA / Swissport / M45 EBITDA GROWTH Operational growth across portfolio 9% EBITDA growth (LfL) 40

41 2011 Highlights (2) CORPORATE JANUARY FEBRUARY M45 shadow toll road sold ( 68mn) Swissport divestment process completed ( 692mn) Delivering REFINANCING APRIL JUNE JULY AUGUST Ferrovial s corporate debt refinanced ( 1,314bn) AUSOL refinancing completed ( 492mn) BAA: Inaugural dollar bond issuance ($1.0bn) Ferrovial gets its first rating by S&P and Fitch: Investment grade (BBB-), outlook stable CORPORATE OCTOBER NOVEMBER DECEMBER BAA 5.88% stake sold (GBP280mn) First Ferrovial Services Investor day in London Chilean toll roads 40% stake divestment completed ( 157mn) To invest in future growth 41

42 Shareholder remuneration Dividend 2011 (Euros/share) Interim 0.20 Complementary 0.25 TOTAL

43 Cash Flow ex-infra projects ( mn) OPERATING CASH FLOW NET INVESTMENT Construction Services Toll Roads (92) (99) (134) Swissport 692 Other/divestment Taxes (21) (67) 1,264 BAA 326 Chile 157 M45 68 TOTAL ,446 Remarkable cash flow generation 43

44 Net debt evolution Ex-projects ( m) 1, Net cash Dec 10 EBITDA Dividends recived Working capital Taxes Investment Divestment Dividends paid Interest Other Net cash Dec 11 Infra projects ( m) 14, ,102-19,836 Net debt Dec 10 EBITDA Working capital Taxes Investment Dividends Interest Capital Forex Deconsolidated Other Net debt debt Dec 11 44

45 Diversified portfolio - EBITDA Reported U K Underlying FY 2011 Pro-forma considering proportional consolidation U K R o W 20% 16% 12% N o r t h A m e r i c a 53% 52% R o W 7% 22% 18% N o r t h A m e r i c a S p a i n S p a i n 819 1,730 Construction Services Toll roads Construction Services Toll roads Airports 45

46 Executive summary 2011 Highlights Business main events in 2011: Services: strong cash flow generation (EUR 164mn), revenue growth & profitability improvement with a stable backlog of over 50% international business. Construction: strong cash flow generation (EUR 298mn), mainly driven by international business, Budimex in particular, which offsets the Spanish market performance. Airports: double digit growth in EBITDA (+18%) with the highest traffic ever in Heathrow (69,4 Million Pax). Toll Roads: EBITDA growth was achieved through higher tariffs and grants offsetting weaker traffic. Asset rotation main events in 2011: Services: Swissport divestment was closed in Q (EUR 695mn). Airports: Ferrovial sold 5,88% of BAA to funds managed by Alinda Capital Partners for GBP 280 mn (EUR 325mn) implying an equity value of GBP 4,8 bn. Ferrovial retains now 49,99% and accounts its financial statements through equity method. Toll Roads: Two divestments initiated in 2010 were cashed-in during 2011: M45 (EUR 68mn) and remaining 40% stake in C.Chile (EUR 157mn). 46

47 Executive summary Financial main events in 2011 At ex-project level In 2011 Ferrovial refinanced its corporate syndicated facility one year prior to maturity through a 4 year facility with 32 leading Financial institutions (maintaining a EUR 541mn liquidity revolving line fully available) and amortized EUR 800 mn, keeping EUR 1bn as outstanding debt. In 2011 Amey closed a GBP 135mn facility maturing in 2015 with 5 financial institutions. This facility has fully replaced the prior one, extending maturities and enlarging the liquidity in GBP 27mn. At Project level In June 2011 Ausol closed the refinancing of its EUR 492mn debt with a 21 bank syndicate loan until 2016, while Radial 4 EUR 548mn financing, matured in July 27th, is awaiting for a sectorial solution from the Ministry of Transportation while a Standstill agreement by the parties has been reached. BAA has very actively tapped the capital markets - In 2011 BAA issued bonds in EUR, GBP and USD equivalent to EUR 1,8bn, which resulted in the total cancellation of the refinancing facility. - In Q BAA issued bonds in EUR, CHF and GBP equivalent to EUR 2,4bn. 47

48 Toll roads Financial 2011 % L-f-L 159mn dividends from projects Revenues % EBITDA % EBITDA % 72.7% +19 bps % 2011 L-f-L Traffic EBITDA Autema 1-7% +8% Chicago Skyway -7% +9% Ausol -7% +10% ETR % +10% Indiana Toll Road 2-3% +4% Refinancing facilities in 2011 Ausol ( 492mn) R4 standstill Chile & M45 divestiture completed EBITDA growth Tariffs and grants more than offset weak traffic Pipeline USA, Canada & New markets 1 Financial asset 2 Equity method 48

49 407ETR (Equity method, FERROVIAL stake: 43%) CAD Mn 2011 % L-f-L EBITDA growth (+11%) Revenues % EBITDA % Net debt 4,831 +7% Stable traffic (-0.5%) Tariff growth Resilient performance New bond issuances (CAD 350mn) EBITDA (CAD million) 553 No relevant maturities until CAD 2.35bn issued since 2009 Dividend payment (CAD 460mn)

50 Services 2011 % L-f-L UK Spain Revenues 2,821 +9% EBITDA % EBITDA % 11.1% +45 bps EBIT % EBIT % 7.4% +7 bps Backlog 12,425-1% +19% +3% -8% Revenues EBITDA BACKLOG L-f-L +3% +6% +7% +9% excluding 2010 one-offs R e v e n u e s geographical breakdown Strong cash flow generation ( 164mn) Growth & Profitability improvement UK 50% Spain 50% Stable backlog Swissport divestment 50

51 S er ie1 Construction 2011 % L-f-L International Domestic Revenues 4,244-5% EBITDA % EBITDA % 5.8% +49 bps EBIT % EBIT % 5.1% +60 bps Backlog 9,997-1% +8% +9% +6% Revenues EBIT BACKLOG L-f-L -17% +8% -12% B a c k l o g Strong cash flow generation ( 298mn) Geographical breakdown Work breakdown Domestic 3,167 Residential Industrial & other International business offsets Spanish performance International 6,830 Civil works 76% Stable backlog 51

52 BAA (Equity method, FERROVIAL stake 49.99%) 100%, GBP Mn 2011 % L-f-L 5.88% stake divestment Revenues 2,524 +9% 100% implied equity value GBP 4.8bn EBITDA 1, % EBITDA % 51.0% +500 bps NET DEBT 12,862 Capital structure strengthened Issuances in Sterling, Euro, Dollar & Swiss franc (2012) 2011: GBP 1.6bn bonds & bank facilities 2012: GBP 1.5bn bonds; Maturities already refinanced Traffic (PAX Mn) 2011 % Double digit EBITDA growth Heathrow % Stansted % Scotland % Southampton % UK airports % LHR highest ever traffic 2012 (e) dividend (GBP 240mn) Edinburgh divestment underway 52

53 HEATHROW Continuous improvement Resilient performance EBITDA (GBP million) Capital markets access 570 1,045 GBP 5.1 billion issued since % 9.5% 18.7% T R A F F I C R E V E N U E S E B I T D A 53

54 Profit & Loss ( mn) Net Revenue EBITDA Depreciations EBIT Disposals & impairments (2) Net Financial Result Equity accounted EBT Taxes BAA discontinued Minorities TOTAL 7, (192) (303) (61) VAR. L-f-L (1) -1% +9% -13% +18% +6% NET PROFIT 1,269 (1): Like-for-Like: Excluding forex impact, perimeter variations and fair value adjustments (2) Included in EBIT at the statutory accounts 54

55 INVESTOR RELATIONS DEPARTMENT C/ Príncipe de Vergara, MADRID (Spain) Tlf: Fax: website: