Ferrovial N.V. · BME:FER
Ferrovial — 9M 2020 Earnings Presentation
22 slides from Ferrovial's earnings presentation, Oct 29, 2020
Slide 1: 9M2020 Results
For a world on the move a eet Ure a a oP = > ) 9M2020 Results i. oak 29 October 2020 Picture : 407ETR (Toronto)
Slide 2: Disclaimer
Disclaimer This report is not a set of Interim Accounts as per IAS 34. 9M2020 financial information included in this presentation has been impacted by the COVID-19 outbreak, mainly since the second half of March. However, at this stage, given the uncertainty about the speed and extent of the resumpt
Slide 3: 9M 2020 overview
9M 2020 overview Strong financial position COVID-19 operating impact Operational efficiencies Divestments Record high liquidity further increased (€7.5bn). Net cash ex-infra €1.7bn Outstanding ACF from Construction & better performance from Services LBJ completed refinancing of PABs ($622mn) Toll Ro
Slide 4: Dividends from infrastructure projects
• • ✓ ✓ • • • ✓ • ✓ • • • • • €mn SEP-20 SEP-19 407ETR 159 222 HAH 29 86 • AGS 0 17 Other projects 18 18 • Total infra 20 7 343 assets**** •
Slide 5: Toll Roads — steady traffic recovery from April lows
Toll Roads — STEADY TRAFFIC RECOVERY FROM APRIL LOWS EURmn Results / contribution from Toll Roads 9M2020 °% CHLFL* * Revenues: COVID-19 impact on traffic, partially Revenues 298 -19.9% offset by higher toll rates & heavy vehicles EBITDA 197 -22.4% ° Heavy traffic more resilient ° US:74% of revenues
Slide 6: 407ETR — steady traffic improvement, 3Q dividend paid
407 E)R — STEADY TRAFFIC IMPROVEMENT, 3Q DIVIDEND PAID 9M2020 9M2020 % CH Traffic (VKT mn) 1,36 -44.5% Revenues 683 -39.3% EBITDA 559 -43.2% EBITDA mg 81.8% Quarterly performance 19 29 30 Traffic (VKT) -BA% -70.2% -43.9% Revenue growth -6.9% -66.8% -37.7% EBITDA growth -9.2% -73.1% -39.4% * 9M 2020:
Slide 7: Managed Lanes — traffic drops mitigated by vehicle mix & toll rates
Global Consolidation DFW, TX, USA Managed Lanes — TRAFFIC DROPS MITIGATED BY VEHICLE MIX & TOLL RATES usd 9M2020 % change NTE LBJ NTE35W Transactions -28.0% -36.3% -16.2% Revenues -20.6% -31.8% 7.5% EBITDA -22.1% -37.6% 77.0% EBITDAmg 84.8% 76.2% 83.3% ° Traffic: impacts from restrictions & social d
Slide 8: Toll Roads - traffic patterns return as economies re-open
TOLL ROADS - TRAFFIC PATTERNS RETURN AS ECONOMIES RE-OPEN TORONTO 407ETR - lights 407ETR - heavies SALSA 012345678 9OURBWSKWTBWMINB O12ZI4SH6TEIVUMOURBWS BIT BIVMI2B Mar lstweek —— Marlast week Oct 3rd week DALLAS - FORT WORTH NTE LBIJ NTE 35W Light ADT Heavy ADT Light ADT Heavy ADT Light ADT Heavy
Slide 9: Traffic Levers — Working from home
‘Traffic Levers — WORKING FROM HOME WEFH observed behavior** 60% of work force could theoretically work from home 300.000 Pre COVID-19: 5-10% worked from home 250.000 During COVID-19: WFH reached over 60% 200,000 in April and remains at c. 40% in September with restrictions still in place 407 ETR tr
Slide 10: Traffic Levers — E-commerce
‘Traffic Levers — E-COMMERCE Ecommerce growth has been a constant & with COVID-19 it has accelerated Ecommerce as % of Retail sales** 16.0% = 2014 to 2019, e-commerce sales ratios =] om nearly tripled globally*. 4, U-8% y 27% 107% = In2Q 2020, e-commerce penetration i 4, 8.0% 8.8% =» US reached 20.8
Slide 11: Traffic Levers — Demographic trends - population
Traffic Levers — DEMOGRAPHIC TRENDS - POPULATION GTA & DFW: the 2 fastest growing metropolitan areas in N. America* * Toronto: strong diversified economy, booming tech sector, strong immigration ° DFW: lower cost of living, lower taxes, diversified economy, #2 in Forbes “Best places for business & c
Slide 12: Traffic Levers — Economic diversification
Traffic Levers — ECONOMIC DIVERSIFICATION - THE KEY TO A STRONG ECONOMY DFW* Toronto** Oil & gas industry has limited weight on DFW economy Greater Toronto Area - GDP Composition by Industry (2019) Consiuction = == Educational nee leformation other o | services... Client Diversification in DFW Manag
Slide 13: Heathrow — significant impact on business but finances remain robust
-leathrow — SIGNIFICANT IMPACT ON BUSINESS BUT FINANCES REMAIN ROBUST Operational performance 9M 2020 (Heathrow SP) 19mn PAX (-68.9% 9M2020, 3Q -84.1%) 9M2020 %CH ° Traffic increasingly volatile (quarantine measures) Revenue 951 -58.7% ° Slot waiver extension for Winter Season Adj. EBITDA 259 = -82.
Slide 14: Looking ahead
14 LOOKING AHEAD High uncertainty regarding traffic projections while health concerns remain Traffic -c.72% in 2020. In 2021 -54% vs 2019 (37mn pax) Given asymmetric risks with COVID-19, Heathrow No covenant breach expected in 2021 requested to enforce regulatory framework mechanism Full details to
Slide 15: AGS — tough quarter but swift management response
Operational performance 9M2020 % CH Traffic 2.8 -73.1% Glasgow 17 -75.0% Aberdeen 0.8 -63.0% Southampton 0.3 -80.3% Traffic increasingly volatile (quarantine measures) Oil & Gas traffic resilience in Aberdeen Southampton heavily impacted by Flybe’s collapse Liquidity Drawdown of £38mn in 1Q 2020 Cas
Slide 16: Construction — high production rates & better CF
Construction — HIGH PRODUCTION RATES & BETTER CF (EURmn) ° High production levels (esp US & Poland) though with additional Operating & financial performance costs. Revenues: +14.2% LfL, with acceleration of US projects COVID-19 impacts -€44mn (in line with 1H): o Additional costs on lockouts and los
Slide 17: Services — resilient operating performance throughout COVID-19
Services - RESILIENT OPERATING PERFORMANCE THROUGHOUT COVID-19 (discontinued activity) 7 9M 2020 With COVID-19, authorities more committed to ensure essential services & reduce environmental impact of human activities - good prospects for services industry. Strong support from authorities: tax defer
Slide 18: Consolidated P&L
Consolidated P&L P&L(EUR mn) 9M2020 9M2019 REVENUES 4,569 4,241 Construction Provision (1Q 2019) -345 EBITDA 241 20 Period depreciation -155 -127 Disposals &impairments = 3 36. _ _ -24_ EBT 8 50 BLL Infrastructure projects -190 -194 Exinfrastructure projects -17 41 FINANCIAL RESULTS -207 -153 Equity
Slide 19: Net Debt evolution (ex-infrastructure)
Net Debt evolution (ex-infrastructure) EuRm) Including discontinued activities (NCP €203mn) 366 9) wp LL] (218) (41) (135) (206) NCP Dec'l9 Dividends EBITDA* Wc Taxes Investments Divestments Shareholder Other NCP Sept'20 from projects evolution Remuneration financing * EBITDA excludes contribution f
Slide 20: Final remarks
Final remarks TRAFFIC IMPACTED BY COVID-19 BUT REOPENING LEADS TO RETURNING TRENDS be = is Y Toll Roads: traffic aligned with reopening, revenues helped by traffic mix & toll rates Y UK airports: Quarantines affecting traffic, testing ready to improve flow. o Consultation on potential reopener of re
Slide 21: Q&A
Slide 22: Investor Relations Department
INVESTOR RELATIONS DEPARTMENT - C/ Principe de Vergara, 135 - 28002 MADRID (Spain) T: +34 91586 27 30 F: +34 91586 28 69 e-mail: [email protected] website: www.ferrovial.com MEMBER OF 2015 Constituent Dow Jones MSCI %:: | MSCI Global Sustainability Indices *“* | Sustainability Indexes In Collaboration