Ferrovial 1Q 2015 Investing for Growth

Transcription

1 Ferrovial Investing for Growth 1 1Q 2015

2 Human Resources Environment FY2014 figures 70% MALE 69,088 Workforce 30% FEMALE 43.3 AVERAGE AGE YEARS OF SENIORITY % PERMANENT CONTRACT 81% 85% MANAGEMENT 15% 2.9% 0.6% ROTATION INDEX 67% 33% NEW RECRUITMENTS -38 Reduction of greenhouse gas emissions Spain 54% Turnover index: 3.6% Present in 25 countries UK 27% America 4% Poland 6% Employee education commitment Total training hours: 1,281,414 Hours per employee: 19 Investment per employee: 258 % of Co revenue: 0.20% RoW 9% 17 Of electricity consumed by ferrovial came from renewable sources 100 in the case of Amey 2

3 3 Ferrovial Overview & Strategy

4 What is Ferrovial? DESIGN & CONSTRUCTION Construction MAINTENANCE Services EX-INFRASTRUCTURE PROJECTS Toll roads INFRASTRUCTURE PROJECTS OPERATION Airports 4 Design, Financing, Construction, Operation & Maintenance of infrastructure assets & Provider of services to cities STRATEGY 1. CF Generation 2. Profitable Growth 3. Shareholder Remuneration

5 1. Cash Flow Generation million 2014 figures 349mn EBITDA from Construction 387mn EBITDA from Services EX-INFRASTRUCTURE PROJECTS Net cash position Non capital intensive / Backlog visibility / EPS accretive PARENT COMPANY Controlling Shareholder 43% Free float 57% 341mn Dividends from Airports 255mn Dividends from Toll roads INFRASTRUCTURE PROJECTS Ring fenced debt Capital intensive / Inflation protected / LT duration & financing 5

6 1. Cash Flow Generation: sources and uses million c70% of OCF from UK, Canada & US Balanced contribution from all businesses 31% 22% 21% 26% Construction Service Toll Roads Airports Sources & Uses OPERATING CASH FLOW FY2014 Construction Services Toll Roads (dividends) Airports (dividends) Taxes & Other TOTAL 2014 figures (58) 1,076 Operating CF Other 6 Investment Dividends & Buy-back Interests

7 2. Profitable growth. Solid Financial Situation million 1Q 15 figures EX INFRASTRUCTURE PROJECTS NET CASH 1,583mn mn Net debt evolution ex-infrastructure projects ,987 1,547 1,172 3,064 1,484 1, Q 15 PARENT COMPANY INFRASTRUCTURE PROJECTS TOLL ROADS* 7,586mn NET DEBT 7,988mn * 1,475mn related to LBJ & NTE 35W, toll roads under construction. mn Debt maturities ex-infrastructure projects >2020 7

8 3. Shareholder remuneration (CF Criteria) per share Scrip Dividend million Evolution 2014 Strong growth in shareholder remuneration Scrip dividend eq. to 2013 complementary (Jul 14) Scrip dividend eq. to 2014 interim (Nov 14) TOTAL paid in Scrip dividend eq. to 2014 complementary (May 15) Scrip dividend eq. to 2015 interim (TBC) +81% Share Buyback 2014: 235mn 2015: up to 250mn (To be executed May 26th to November 18th 2015) 8

9 Ferrovial today: 1Q 15 Results Double digit revenues & EBITDA growth Supported by operational performance & FX impact Significant traffic growth at key assets Airports, Highways (Canada, US, Europe) on the back of: Strong financial position Net cash (ex-infra projects) at 1,583mn. Better weather conditions vs 1Q 14 Easter holidays in March Lower oil prices Economic recovery since 2H 14 Reducing borrowing costs & extending maturity Renewing liquidity line &^issuing bonds Heathrow issued c. 850mn (of which 750mn at 15Y, 1.5%. Cost) ETR407 issued CAD150mn 30Y bonds at 3.30% Increased & extended 1.3bn liquidity line (5Y, 50bps) Higher dividends from 407ETR & Heathrow +7% & +11%, respectively (Ferrovial receives a combined 85mn) All time high combined construction & services backlog > 32bn (including JV) 9

10 Toll roads million 58mn dividends from 407ETR Traffic growth across our portfolio Canada, US & Europe (Ireland, Portugal and Spain) Traffic despite tariff increases Chicago Skyway: +4.6% with +13.2% in tariffs ETR407: +2.4% with c.+10% in tariffs NTE Managed Lanes (6 months of operations) Revenues +47%, traffic +3% vs 4Q 14 New project awarded: I77, North Carolina, US (Managed Lanes) 407 East extension phase II, Canada Other relevant events: Ocaña-La Roda deconsolidated (non-cash positive impact of 63.7mn) ITR disposal (expected gain $50mn in 2015 for Ferrovial) Active pipeline: Bidding in US / Australia / Canada Monitoring of opportunities in other markets Dividends from projects Canada 407ETR +2.4% TRAFFIC GROWTH Ireland M4 +5.2% Portugal Algarve +11.7% 1Q 15 % 1Q 15 figures USA Chicago +4.6% SH % Spain Ausol I +11.5% Revenues % EBITDA % Q'15

11 407ETR CAD million 407-ETR Equity method, Ferrovial stake 43% NTE USD NTE 1-2 Texas 1Q 15 figures 56.7% Global consolidation +2.4% traffic despite c.10% in tariff (Feb 2015) Dividend up +7% Revenues +15.5% EBITDA +14.8% Revenues +47% vs 4Q 14 to $9.4mn Traffic up +3.1% vs 4Q 14 The avg. tariff per transaction was $ ,1X Net debt / EBITDA Average tariffs (peak hours) Segment 1 Segment 2 8,1X $2,07 +41% $2,91 $2,34 +41% $3, Q'14 1Q'15 4Q'14 1Q' Dividends Maximum tariffs Segment 1 Segment 2 $4,25 $4,15 $3,35 $2,75 +51% +27% Q'15 4Q'14 1Q'15 4Q'14 1Q'15 11

12 Services million 1Q 15 figures Largest division by revenues, EBITDA & OCF (FY14) Strong revenue growth LfL Spain +6.7%, UK +2.4% & International +35.6% Accounting margins in line with 1Q 14 New all-time high backlog 23,549mn (Including JV) UK backlog represents 70% Spain: Higher volumes: +10.9% in urban waste Slightly margins: 10.4% vs 10.3% in 1Q 14 EBITDA: +8% organic UK: Stable margins YOY 4.7%. Usually 1Q has lower margins given: Seasonality: worse weather conditions in 1Q New project start-up costs Higher costs on finalization of investment phase in Birmingham contract Higher backlog: +8.2% to 16.6bn (+1% LfL) 1Q 15 % Revenues 1, % EBITDA % EBITDA % 6.7% = Backlog 23,549 +5% Performance by geography UK SPAIN +15% +14% +8% Revenues EBITDA Backlog Operating cash flow % +8% -2% 302 FY

13 Construction million 1Q 15 figures International represents 72% of total revenues Improved profitability Driven by Budimex (Poland) Strong growth in Poland Revenues +22.5% (+20.9% LfL) EBITDA +79.4% (+76.5% LfL) Backlog +10% vs Dec 14 (+4.7% LfL) 1Q 15 % Revenues % EBITDA % EBITDA % 7.4% +36bp Backlog 8,600 +6% Backlog +6% (stable LfL) Civil works represents 80% Maintaining selective criteria as regards tendering projects 298 Operating cash flow Budimex Order Backlog (PLNbn) Backlog by country 6,1 +4.7% 6,4 22% 18% 32% 9% 19% Q 15 España Polonia USA Reino unido Resto 13

14 Heathrow: traffic growth reflects strong demand Equity method, Ferrovial stake 25% 1Q 15 figures Strong intercontinental traffic growth North America: new destinations & increased frequencies Middle East with increased flights & larger aircrafts LatAm: Avianca s new Colombia service & growth in Mexico Vietnam Airlines moved to Heathrow Short haul led by European flights European growth reflecting BA seat capacity increase Cargo +4.5% driven by North America, India & HK Heathrow capacity expansion proposals shortlisted for further analysis (Airports Commission) Heathrow Shareholders 25% 20% 12,6% 11,2% 11,2% 10% 10% Ferrovial Qatar Brittania GIC Alinda CIC USS Heathrow passenger traffic (1Q15 vs 1Q14) North America 3.5mn +4.4% Latin America 0.3m +12.6% UK 1.2m +3.9% Africa 0.8m -3.4% Europe 6.5m +1.0% M. East 1.5m +5.6% Asia Pacific 2.5m -0.6% 16.4mn passengers (+2%) UK Regional Airports (AGS): Equity method, Ferrovial stake 50% 1Q 15 reached 2.8mn passengers +9.3% YoY Revenues +7%, EBITDA +13% 1Q 15 % Revenues % EBITDA % EBITDA % 54.9% +131pb Net debt 13,137 +1% 14

15 Best ever passenger service levels 1Q 15 figures Quarterly passenger satisfaction Passenger satisfaction European ranking ASQ score (out of 5) 4,20 4,00 3,80 3,60 3,40 Q Q ASQ score (out of 5) 4,50 4,30 4,10 3,90 3,70 3,50 Q ,12 3,20 3,30 Q4-06 Q2-07 Q4-07 Q2-08 Q4-08 Q2-09 Q4-09 Q2-10 Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q4-14 Q1-15 LHR Heathrow European top quartile European average European competitors European comparators Departures within 15 minutes of schedule Baggage performance misconnect rate per 1,000 passengers 78% 84% 81% 40 63% Q Q Q Q Best Airport in Western Europe 2015 World s Best Airport Shopping 2010, 2011, 2012, 2013, 2014, 2015 Terminal 5 World s Best Airport Terminal 2012, 2013, 2014, 2015

16 Thank you 16 Ferrovial Investor Relations Tel:

17 Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 17

18 407 ETR Location Area of expansion 407 East extension High density population area 407 Ring road of Toronto 108 km 18

19 407 ETR All Electronic Roadside Tolling System Sophisticated electronic toll highway NO toll-booths, closed ticket tolling scheme (on/off ramps) NO stopping or slow-downs to pay ALL vehicles able to use highway Transponder not required. If valid transponder is not detected, digital images are taken at entry and exit and invoices posted to registered car owner Tolls billed monthly 19

20 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 20

21 407 ETR Cash flow and valuation overview Cash Generation (1999-1Q 15) 407 ETR Valuation (100%) million million Initial equity investment (62%) (326mn) Dividends (00 1Q 15) 1,333mn 10% disposal 640mn 100% pay-back in first 10 years 24x NET CASH IN 1,647mn Valuation x Q'15 Maturity 2, years to maturity Strong dividend flow Equity valuation sharp increase 21 * March 2015 analysts consensus

22 407 ETR Financial overview ($CAD million) 2014 figures Revenues Capital Expenditure CAGR: 8.7% years to maturity OPEX Dividends CAGR: 4.3% % pay-back in first 10 years EBITDA Net Debt / EBITDA X % 77% 79% CAGR: 9.8% % 83% 83% 83% 82% 80% 76% Free-tariff revision 8% CAGR 02-15* 27,0X 8,1X * Tariff increase for light Vehicles in Peak hours regular zone (%)

23 Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 23

24 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 24

25 Managed Lanes Level of demand NTE (untolled) 407ETR (tolled) Peak period Time of the day Westbound Eastbound Time of the day 25

26 Paying for predictability Travel time variability Time (min) Time (min) Free Flow Travel Mean 10 0 NB AM NB MD NB PM SB AM SB MD SB PM NB - North bound SB - South bound Free flow time of 14 minutes at 6.00am The average travel time during all time periods is significantly higher In some periods, the average travel time is double the free flow speed and can go up to almost minutes 26 Data Source: Travel Time Runs Seg 3a and 3b conducted Fall 2012

27 Dallas and Fort Worth Regional Map Managed Lanes regional map LBJ NTE 1-2 NTE 35W 27

28 Managed Lanes North Tarrant Express Opened on October 4 th, 9 months ahead of schedule 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 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 CINTRA Shareholder structure 57% 33% 10% Financial structure MERIDIAM DALLAS FIRE&POLICE PENSION SCHEME 21% 52% 27% EQUITY DEBT PUBLIC FUNDS 28

29 Toll rates tariff threshold Tariff threshold Toll Rate Toll Rate Cap 0.75 c/mi Speed Demand threshold Speed Threshold 3300 pce/h 2-lane sections 50 mi/h Demand 12:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 Hour starting Analysis by segment and direction Freedom under the cap TOTAL FREEDOM Freedom under the cap 29

30 Managed Lanes Lyndon B Johnson Construction expected to be concluded in 2015 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 No toll-booths, fully electronic free flow tolling system Shareholder structure 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 51% 42% 7% CINTRA MERIDIAM Financial structure 25% 54% 20% DALLAS FIRE&POLICE PENSION SCHEME EQUITY DEBT PUBLIC FUNDS 30

31 Managed Lanes North Tarrant Express 35W Expected to open in mid-2018 Key characteristics DESCRIPTION: 2 managed lanes in each direction of the IH-35W, segments 3A and 3B (3B segment to be built by TxDOT) LENGTH: 10.2 mile section (segments 3A 6.2 miles and 3B 4 miles) CONCESSION PERIOD: 48 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 The corridor south to the 3A segment is currently ranked as the most congested roadway in Texas. No toll-booths, fully electronic free flow 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 50% 26% 14% 10% CINTRA Shareholder structure APG Financial structure MERIDIAM 32% 59% 9% EQUITY DEBT PUBLIC FUNDS DALLAS FIRE&POLICE PENSION SCHEME 31

32 Managed Lanes Financial Overview 2014 figures Figures in US Dollars Total Investment: 2.10 bn 2.80 bn 1.41 bn Private Equity: Cintra: Meridiam: DPFPS: APG: 21% 427 m 243 m (57%) 141 m (33%) 43 m (10%) 24% 672 m 343 m (51%) 285 m (42%) 44 m (7%) 31% 430 m 216 m (50%) 60 m (14%) 43 m (10%) 112 m (26%) Total Debt: 52% 1,102 m 56% 1,582 m 60% 847 m PABs: TIFIA: 398 m 704 m 606m 976 m 274 m 573m Public Funds: 27% 573 m 19% 490 m 9% 126 m First combination of TIFIA and tax exempt PABs. First private activity bond issuance for a toll road. 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 Very competitive capital structure in spite of the difficult market conditions. Strong portion of the debt from TIFIA program with its flexible amortizing structure during the first 25 years. 32

33 Ferrovial today: 1Q 15 Results 33

34 1Q 15 Results million Income Statement Revenues JUN 14 1Q 15 1Q 14 Var% LfL% 1Q 15 1Q 14 VAR.% LfL% Revenues EBITDA EBITDA margin Period depreciation EBIT 2, % , % % 14.2% 14.3% 3.0% 5.6% 4.2% Construction Airports Toll Roads Services Others Total , ,147 EBITDA , , Q 15 1Q 14 VAR.% LfL% EBIT margin Disposals & Impairments Financial results Equity-accounted affiliates EBT Corporate income tax 6.8% % Construction Airports Toll Roads Services Others Total Construction backlog Services backlog Operating Indicators Q 15 DEC 14 8,600 8,091 23,549 22, VAR% CONSOLIDATED NET INCOME Discontinued operations Minorities NET INCOME ATTRIBUTED % Traffic evolution ETR-407 (VKT) Chicago Skyway (ADT) Ausol I (ADT) Ausol II (ADT) M4 (ADT) Heathrow (million passengers) AGS (million passengers) 1Q ,194 34,006 10,156 12,840 25,444 16,4 2,8 1Q ,849 32,514 9,105 11,867 24,177 16,0 2,5 VAR%

35 Diversified portfolio million 1Q 15 figures Ex Infrastructure Projects Infrastructure Projects Services Construction Toll Roads Airports Non Capital Intensive PROFIT GENERATION CASH GENERATION Fully consolidated Method 210Mn EBITDA Capital Intensive LONG DURATION LONG TERM VALUE Proportional (1) 389Mn Services -2% Toll Roads 15% 34% 31% 31% Construction 22% Airports 37% 32% 50% Spain 14% UK 17% US & Canada 18% RoW 25% Spain 41% UK 25% US & Canada 9% RoW 35 (1) Proportional: All EBITDA figures are aggregated in a proportional basis to the Ferrovial equity stake in each company or project (mainly ETR 407 toll road in Canada and UK airports).

36 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. 36