G r o u p o p e r a t i o n s. C u r r e n t m a r k e t s c e n a r i o

Transcription

1 G r o u p o p e r a t i o n s C u r r e n t m a r k e t s c e n a r i o

2 An international INFRASTRUCTURE operator 25 Toll roads 2,900 kilometres operated 19 billion investment Present in 7 countries 90% OF FERROVIAL S EBITDA Eight airports, including Heathrow Number one private operator 107mn pax in UK Urban infrastructures Roads and railways Waste management Street lighting Airport handling 2 Investor Relations Department Figures in million Euros

3 An INTERNATIONAL infrastructure operator Ferrovial Foundation Ferrovial IPO Cintra IPO BAA FER & CIN Merger First Toll Road (Spain) First intl. Toll Road Agroman 407 ETR (Canada) Budimex (Poland) Amey (UK) Cespa (Spain) First U.S. Toll Road Webber (U.S.) Swissport (Switzerland) Real Estate disposal (Spain) Sidney Disposals Bristol Disposals WDF Belfast Disposals Gatwick Car park Disposals APP Tube Lines Disposals Spanish constructor INTERNATIONAL INFRASTRUCTURE OPERATOR International Contribution 2009 COUNTRIES SERVICES BACKLOG CONSTR. BACKLOG EMPLOYEES SHARE- HOLDERS REVENUES INVESTS ASSETS EBITDA % 61% 60% 60% 65% 70% 80% 85% 3 Investor Relations Department Figures in million Euros

4 G r o u p o p e r a t i o n s C u r r e n t m a r k e t s c e n a r i o 4 Investor Relations Department Figures in million Euros

5 Good assets, good business, good backlog Sizeable international backlog 90% of international construction backlog from Group companies Profitable international construction offsets domestic decline World class assets Resilience during economic downturn Prone to growth as economy recovers Limited Spanish exposure 5 Investor Relations Department Figures in million Euros

6 Sizeable international backlog CONSTRUCTION CONSTRUCTION SERVICES (ex-swissport) SERVICES 11.0bn 13.3bn >90% International backlog from Group companies 63% International backlog (*) March 10 backlog, including LBJ 1.3bn in Construction and Birmingham 3.3bn in Services Investor Relations Department Figures in million Euros 6

7 Profitable intl. construction offsets domestic decline DOMESTIC INTERNATIONAL * -24% +91% Highest ever backlog: 11.0bn (*) including LBJ 1.3bn Investor Relations Department Figures in million Euros 7

8 World class assets Performance during economic weakness Q Q 10 Traffic -1.7% +4.4% -1.5% +1.6% Resilience Revenue +2% +10% +11% +7% & EBITDA +7% +16% +22% +5% Growth Combined EBITDA over 1,000mn yearly Probably the best two infrastructure assets in the world (*) Figures in local currency Investor Relations Department Figures in million Euros 8

9 Spanish exposure Non critical Net debt EBITDA ex-infra Op. Cash flow 3,799mn (2.0bn non recourse + 2.0bn recourse debt maturing Dec 12) 398mn 244mn Toll roads: 10% Construction, Services & Corporate: 7% Toll roads: 5% Construction: 4% Services: 6% Toll roads: 2% Construction: 4% Services: 24% Enterprise value 6,154mn 9 Investor Relations Department Figures in million Euros

10 G r o u p o p e r a t i o n s C u r r e n t m a r k e t s c e n a r i o 10 Investor Relations Department Figures in million Euros

11 Current market scenario Sovereign risk Liquidity constraint Cost & access to financing 11

12 Ferrovial s strategy Mature asset rotation Debt optimization Focus on greenfields 12

13 Mature assets rotation: 3bn ( ) Gatwick 1,657mn Car parks BAA's real estate Chilean toll roads Tube Lines 400mn 280mn 209mn 238mn To de-leverage & finance Future growth Others (Building, Polish RE,...) 150mn 407-ETR (10% stake) In process 13

14 Dec 09 Debt structure and strategy P A R E N T NET DEBT 1,172MN Debt reduction by: - Asset rotation - Operating Cash flow P R O J E C T S NET DEBT 21,099MN TOLL ROADS Debt 7,104 AIRPORTS Debt 13,853 - Self-financing - Strong dividends - Self-financing - Cancel bank facilities - Long dated Bonds 14

15 Debt profile 94% of total debt is non-recourse 65% of debt is investment grade Long dated profile Toll roads dividends equivalent to future equity investments Self-financing BAA ring fence 15

16 94% of total debt is non-recourse 4% Dec 09 6% Ex-project debt NET DEBT 22,271MN 94% Non-recourse Non-recourse debt: 32% Toll roads 62% Airports 16

17 65% of debt is a solid investment grade Dec 09 Business unit/ Project Debt Rating range ETR BBB Senior A Junior 518 BBB Subordinated 110 A Portugal 545 Euroscut Algarve 240 BBB Euroscut Norte 305 BBB USA Chicago skyway BBB SH BBB Spain Ausol 556 BBB Autema 639 BBB Total Toll roads Bonds A- Class A A- Class B 740 BBB Total BAA Tube Lines AA / BBB- Total Services Investment grade debt % Chilean toll roads associated debt ( 1,541mn) is rated BBB, but it s not included in Ferrovial debt position, because considered as Asset held for sale 17

18 Long dated profile Dec 09 74% 5.1% Fixed or hedged Average cost BAA bond issuance Subordinated debt On track Maturity calendar 407-ETR (532) BAA (2,055) R4 (557) BAA (1,937) LEVANTE (496) BAA (2,479) BAA (622) 11,984 AUSOL (485) CORP. (1,980) CORP. (260) 4,795 1,614 3,059 2, >

19 Toll roads dividends equivalent to future equity investment Natural de-leverage (ETR-407) DEBT / EBITDA DIVIDENDS PERFORMANCE ( e) x27, e-2019e x11, Static Debt/EBITDA does not reflect growth profile 19

20 BAA ring fence self-financeable Ratings Bonds A- Class A A- Class B BBB GBP 1,600m headroom (junior debt) preserving ratings BAA Gearing ratios (RAR) X0.85 X0.70 x0.67 x0.74 x0.67 x0.73 x0.66 x0.72 Sep-09 Dec-09 March-10 Senior RAR Trigger Junior RAR Trigger Gearing ratio is the ratio of nominal net debt (including index-linked derivative accretion) to RAB. Net debt at 31 December 2009 and 31 March 2010 excludes million in restricted cash from the Gatwick disposal held in escrow to meet potential pension commutation payments. RAB figure at 31 March 2010 is provisional with final figures to be published in the regulatory accounts for the year ended 31 March Senior gearing ratio could be reduced by utilising the currently undrawn junior tranche of capital expenditure facility. 20

21 Debt main issues BAA's Sub debt On track Ring - fence head room Appetite for Bonds and Sub debt facilities Radials (Spain) Only radials with non recourse to shareholders Working towards a sector solution LBJ (USA) To replicate NTE structure NTE bonds trading at tighter spreads 21

22 LBJ To replicate NTE financial structure Bringing capital markets to infra projects Equity (Cintra equity contribution USD245mn) Debt related/backed by US Public institutions 19% Private Activity Bonds (USD400mn.) First time ever financing PPP in US 28% Department of Transport of Texas (USD573mn) 32% TIFIA* loan (Federal Government) (USD650mn) Limited equity commitment & backlog growth ( 0.2mn) ( 1.3bn) Location: Dallas (Texas) / Investment: USD 2,050mn / Concession period: 52 years / Cintra stake: 57% * Transportation Infrastructure Finance and Innovation Act 22

23 Day to day management Refinancing ahead of calendar Working capital focus Bringing in financial partners Limited equity contribution to new projects Opex under close scrutiny Overheads reduction Preserving margins Safety It s all about Cash, not Volume 23

24 Conclusion Good assets, good business, good backlog Disposals: ( 3,000mn) Refinancing: ( 15,000mn) Backlog Traffic Tariff 24