Ferrovial N.V. · BME:FER
Ferrovial — FY2019 Earnings Presentation
22 slides from Ferrovial's earnings presentation, Feb 27, 2020
Slide 1: 2019 Results
ferrovial 2019 Results 27 February 2020 Picture : LBJ, Texas (US)
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements about the Company. These statements are based on financial projections & estimates and their underlying assumptions, statements regarding plans, objectives and expectations, which refer to estimates regarding, among others, future g
Slide 3: 2019 overview – Strong performance of infrastructure
2019 overview – STRONG PERFORMANCE OF INFRASTRUCTURE MLs above expectations on regional growth & improved connectivity 407ETR: 87% customer satisfaction amid rising toll rates Operations • c.80% agree some/most/all of toll costs are offset by time savings HAH: 9th consecutive year of traffic g
Slide 4: 2019 main figures – Solid financial growth
2019 main figures – SOLID FINANCIAL GROWTH (EUR) Revenues EBITDA* Net income 6.1bn 121mn 268mn Dividends Operating Net cash from projects Cash Flow** Position*** 729mn 810mn 1.6bn *Including IFRS 16 **Ex-infrastructures, pre-tax ***Ex-infrastructures, including NCP from discontinued operations (€158
Slide 5: Toll Roads – 67% of reported EBITDA from North America
Toll Roads – 67% OF REPORTED EBITDA FROM NORTH AMERICA (EURmn) Results / contribution from Toll Roads 2019 % CH LFL* Revenues 617 +28.5% Reported EBITDA** 433 +33.5% EBITDA margin 70.2% Equity Accounted 182 +11.4% Dividends 494 Proportional EBITDA 738 +17.1% Asset rotation Refinancing process • AUSO
Slide 6: 407 ETR – 2019 revenues up 8.3%
Equity method, FER 43% 407 ETR – 2019 REVENUES UP +8.3% Toronto, Canada (CADmn) 2019 performance Dividends 1,050 +15% 920 845 CAGR 750 790 +8.8% 730 2010-19 680 exc. 2018 one-off 14.1% 600 +0.7% 460 exc.weather impact 8.3% 8.1% 300 -0.2% Traffic Revenues EBITDA Dividends 2010 2011 2012 2013 2014 201
Slide 7: Managed Lanes – Exceeding traffic expectations
Global Consolidation Managed Lanes – EXCEEDING TRAFFIC EXPECTATIONS Dallas-Fort Worth, TX, USA (USDmn) Heavy traffic growing at double digit rate in the region NTE – EBITDA LBJ – EBITDA NTE 35W* – EBITDA +85% +33% +24% 4Q 2019 vs. YOY YOY 4Q 2018 129 127 22 98 103 75 80 57 59 38 12 2015 2016 2017 20
Slide 8: Dallas-Fort Worth Managed Lanes – Benefited from commercial traffic
Dallas-Fort Worth Managed Lanes – BENEFITED FROM COMMERCIAL TRAFFIC Logistics facilities scattered all around our Maganed Lanes Strong growth expected in e-commerce (today 13.3% of US retail sales*) Capture rate improved in all our Managed Lanes NTE 3C LBJ NTE35W NTE Dallas Fortworth Airport *Source
Slide 9: Managed Lanes - Improving connectivity to push traffic beyond 2024
Managed Lanes - IMPROVING CONNECTIVITY TO PUSH TRAFFIC BEYOND 2024 Texas, USA End of construction works & improved connectivity in 2018 led to a surge in traffic in 2019 Network improvement works 2020-2024 to dampen traffic New surge in traffic expected beyond 2024 once construction works are over 2
Slide 10: NTE 3C – 60% extension to NTE 35W
Global consolidation NTE 3C – 60% EXTENSION TO NTE 35W FER 53.7% Dallas-Fort Worth, TX, USA With this extension, NTE35W becomes our largest ML in Dallas-Fort Worth Shareholder structure • Financial close for Segment 3C change order in August 2019 • 6.7mile northbound extension of NTE 35W 3A & 3B Cin
Slide 11: I-77 - Connects downtown with residential communities
Global consolidation I-77 - CONNECTS DOWNTOWN WITH RESIDENTIAL COMMUNITIES Charlotte, NC, USA 50.1% stake Performance according to expectations since opening Lake Norman 50.1% $9/month 2014-69 $648mn Mooresville Stake Average Concession Investment (residential monthly bill area) $248mn $100mn $90mn
Slide 12: Other toll roads - Availability projects with long duration
Other toll roads - AVAILABILITY PROJECTS WITH LONG DURATION (EURmn) Portfolio includes availability projects in countries with low Government bond yields Long duration (16y to maturity on average) Consolidation EBITDA Net Debt Gov. Type Maturity Revenues EBITDA* Stake method margin (100%) Bond Yield
Slide 13: Airports – Revenue growth across the board
Airports – REVENUE GROWTH ACROSS THE BOARD (GBP mn) Heathrow AGS Equity consolidated, FER 25%, London, UK Equity consolidated, FER 50%, Glasgow, Aberdeen & Southampton, UK 2019 var. 2019 var. Traffic 80.9 1.0% Traffic 13.6 -7.8% Total Revenue 3,070 3.4% Glasgow 8.9 -8.4% Opex -1,149 1.7% Aberdeen 3.
Slide 14: Heathrow - Strong service & robust operations
Equity consolidated, FER 25% Heathrow - STRONG SERVICE & ROBUST OPERATIONS London, UK (GBP mn) Record traffic (9 consecutive years of growth) Best airport in Western Europe (5th consecutive year) 82% passengers rate Heathrow as Excellent or Very Good Pax satisfaction European ranking Baggage perform
Slide 15: Construction – Better cash flow generation than expected
Construction – BETTER CASH FLOW GENERATION THAN EXPECTED (€ mn) • 2019 EBIT in line with 1H2019 guidance 2019 main figures We are comfortable with the current level of provisions 2019 % Ch % CH LFL Revenues 5,413 +3.1% +0.3% • 2019 OCF better than forecasted (€132mn vs. EBITDA* -321 n.s. n.s. -€300m
Slide 16: Services (discontinued activity) – Positive CF generation excluding Birmingham
Services (discontinued activity) – POSITIVE CF GENERATION EXCLUDING BIRMINGHAM 2019 performance Broadspectrum disposal Spain: • Agreement for the sale to Ventia • Revenues +3.8% LfL to €2bn • Enterprise Value: €327mn (AUD524.5mn) • EBITDA +5.3% LfL • Equity Value: €303mn (AUD485.5mn) • EBITDA mg exp
Slide 17: Consolidated P&L
Consolidated P&L (LfL figures; EURmn) P&L (EUR mn) 2019 2018 REVENUES 6,054 5,737 • Disposals, Impairments: €460mn impacted by: Construction Provision (1Q 2019) -345 • €475mn capital gains from Ausol divestment EBITDA ex-IFRS 16 76 479 • -€58mn further impairments at Autema EBITDA 121 • Others: Ruta
Slide 18: Net Debt evolution (ex-infrastructure)
Net Debt evolution (ex-infrastructure) (€mn) Including discontinued activities (NCP €158mn) Higher dividends from Infrastructure & mature asset divestments supporting CF generation 165 (204) (143) 129 (25) 484 345 (520) (210) (295) 729 (59) €330mn Construction provision variation 1,631 €81mn Operati
Slide 19: Final remarks
Final remarks… +14.1% €166mn NTE first dividend +60% Above consensus valuation 407ETR NTE Ausol FY2019 dividend growth MLs continue booming Mature assets rotation shows market apetite for infra +25.3% 9 €1.6bn Traffic growth (Q4 2019 vs Q4 2018) Consecutive years of traffic growth NTE35W Heathrow Ne
Slide 20: Horizon 24 – What to expect in 2020
Horizon 24 – WHAT TO EXPECT IN 2020 • Growth in dividends from projects to continue First dividend from LBJ • Focus on infrastructure projects with high concessional value Pipeline progressing (Maryland 1st project - RFQ, Feb 2020) • Construction >1% EBIT margin Working towards 3.5% in 2024 • Commit
Slide 21: Q&A
Q&A 21
Slide 22: Investor Relations contact
ferrovial INVESTOR RELATIONS DEPARTMENT - C/ Príncipe de Vergara, 135 - 28002 MADRID (Spain) T: +34 91 586 27 30 F: +34 91 586 28 69 e-mail: [email protected] website: www.ferrovial.com