Ferrovial N.v. · BME:FER
Ferrovial — Q1 2015 Earnings Presentation
36 slides from Ferrovial's earnings presentation, May 2015
Slide 1: Ferrovial 1Q 2015 Investing for Growth
Ferrovial 1Q 2015 Investing for Growth 1
Slide 2: Human Resources Environment
Human Resources Environment FY2014 figures 69,088 -38 70% Workforce 30% MALE FEMALE 43.3 AVERAGE AGE 43.8 8.9 YEARS OF SENIORITY 9.5 77% PERMANENT CONTRACT 81% 85% MANAGEMENT 15% Reduction of greenhouse gas emissions 2.9% 0.6% ROTATION INDEX 2009 - 2014 67% NEW RECRUITMENTS 33% 3.6% 17 Turnover inde
Slide 3: Ferrovial Overview & Strategy
Ferrovial Overview & Strategy 3
Slide 4: What is Ferrovial?
What is Ferrovial? DESIGN & CONSTRUCTION MAINTENANCE Construction Services EX-INFRASTRUCTURE PROJECTS INFRASTRUCTURE PROJECTS Toll roads OPERATION Airports … Design, Financing, Construction, Operation & Maintenance of infrastructure assets & Provider of services to cities STRATEGY 1. CF Generation 2
Slide 5: 1. Cash Flow Generation
1. Cash Flow Generation € million 2014 figures € 349mn EX-INFRASTRUCTURE EBITDA from Construction PROJECTS Net cash position € 387mn EBITDA from Services Non capital intensive / Backlog visibility / EPS accretive PARENT COMPANY Controlling Shareholder 43% Free float 57% € 341mn Dividends from Airpor
Slide 6: 1. Cash Flow Generation: sources and uses
1. Cash Flow Generation: sources and uses € million 2014 figures Sources & Uses c70% of OCF from UK, Canada & US OPERATING CASH FLOW FY2014 Balanced contribution from all businesses 2014 Construction 236 Services 302 21% Construction Toll Roads (dividends) 255 31% Airports (dividends) 341 Service Ta
Slide 7: 2. Profitable growth. Solid Financial Situation
2. Profitable growth. Solid Financial Situation € million 1Q’15 figures EX–INFRASTRUCTURE PROJECTS Net debt evolution ex-infrastructure projects €mn 1,484 1,663 1.632 1.583 907 NET CASH 31 €1,583mn 1,172 1,547 1,987 3,064 2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q´15 PARENT COMPANY INFRASTRUCTU
Slide 8: 3. Shareholder remuneration (CF Criteria)
3. Shareholder remuneration (CF Criteria) € per share € million Scrip Dividend Evolution Strong growth in shareholder remuneration 2014 Scrip dividend eq. to 2013 complementary (Jul’14) 0.291 917 Scrip dividend eq. to 2014 interim (Nov’14) 0.381 TOTAL paid in 2014 0.672 477 510 367 2015 282 308 Scri
Slide 9: Ferrovial today: 1Q'15 Results
Ferrovial today: 1Q’15 Results Double digit revenues & EBITDA growth Supported by operational performance & FX impact Better weather conditions vs 1Q’14 Significant traffic growth at key assets Easter holidays in March Airports, Highways (Canada, US, Europe) on the back of: Lower oil prices St
Slide 10: Toll roads
Toll roads € million 1Q’15 figures TRAFFIC GROWTH €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 USA NTE Man
Slide 11: 407ETR NTE
407ETR NTE CAD million USD 1Q’15 figures 407-ETR NTE 1-2 Texas Equity method, Ferrovial stake 43% 56.7% Global consolidation +2.4% traffic despite c.10% in tariff (Feb 2015) Revenues +47% vs 4Q’14 to $9.4mn Dividend up +7% Traffic up +3.1% vs 4Q’14 Revenues +15.5% The avg. tariff per trans
Slide 12: Services
Services € million 1Q’15 figures Largest division by revenues, EBITDA & OCF (FY14) 1Q’15 % Strong revenue growth LfL Revenues 1,162 +13% Spain +6.7%, UK +2.4% & International +35.6% EBITDA 77 +12% Accounting margins in line with 1Q’14 EBITDA % 6.7% = Backlog 23,549 +5% New all-time high back
Slide 13: Construction
Construction € million 1Q’15 figures International represents 72% of total revenues 1Q’15 % Improved profitability Revenues 883 +11% Driven by Budimex (Poland) EBITDA 65 +15% Strong growth in Poland EBITDA % 7.4% +36bp • Revenues +22.5% (+20.9% LfL) Backlog 8,600 +6% • EBITDA +79.4% (+76.5% Lf
Slide 14: Heathrow: traffic growth reflects strong demand
Heathrow: traffic growth reflects strong demand Equity method, Ferrovial stake 25% 1Q’15 figures Strong intercontinental traffic growth • North America: new destinations & increased frequencies Heathrow passenger traffic (1Q15 vs 1Q14) • Middle East with increased flights & larger aircrafts Europe
Slide 15: Best ever passenger service levels
Best ever passenger service levels 1Q’15 figures Quarterly passenger satisfaction Passenger satisfaction European ranking Q4 2006 – Q1 2015 4,50 Q1 2015 4,20 4,30 4,12 ASQ score (out of 5) ASQ score (out of 5) 4,00 4,10 3,80 3,90 3,60 3,70 3,40 3,50 3,20 3,30 Q2-07 Q2-08 Q2-09 Q4-10 Q4-11 Q4-12 Q4-1
Slide 16: Thank you
Thank you Ferrovial Investor Relations 16 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 17: Appendix: Introduction to 407ETR Toll road
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 17
Slide 18: 407 ETR location and area of expansion
407 ETR Location Area of expansion 407 East extension High density population area Ring road of Toronto 108 km 407 18
Slide 19: All Electronic Roadside Tolling System
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
Slide 20: 407 ETR: Fast, Safe, Reliable
407Fast ETR Safe R eliable LOCATION HIGH HOUSEHOLD INCOME Greater Toronto Area 46% higher 23% of Canada population than Canada average SPEED NO REGULATORY REVIEWS Alternatives routes 40kph vs 100kph at 407 During concession life (99 years) TRAFFIC TOLL RATE HIGH FLEXIBILITY Alternatives routes Inclu
Slide 21: Cash flow and valuation overview
407 ETR Cash flow and valuation overview Cash Generation Valuation 407 ETR (1999-1Q’15) (100%) € million € million Initial equity investment (62%) (326mn) 100% pay-back 12.734 Dividends (00 – 1Q’15) 1,333mn in first 10 years 24x 10% disposal 640mn NET CASH IN 1,647mn Valuation x24 525 1999 1Q'15 Mat
Slide 22: Financial overview ($CAD million)
407 ETR Financial overview ($CAD million) 2014 figures Revenues Capital Expenditure 888 CAGR: 8.7% 97 90 88 77 72 70 74 420 55 49 83 years to maturity 38 2005 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 OPEX Dividends 730 CAGR: 4.3% 680 152 600 460 104 100% pay-back in first 10 years 300
Slide 23: Appendix: Introduction to Managed Lanes Toll roads
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 23
Slide 24: New assets landmark: Express Tollway within an Existing Highway
Managed Lanes New assets landmark “Express Tollway within an Existing Highway” Free Tolled Lanes Free Lanes Speed >50mph Lanes A solution to congestion on “existing urban corridors” by means of Active management of “newly added capacity” through tolling 24
Slide 25: Level of demand
Managed Lanes Level of demand NTE (untolled) 407ETR (tolled) Peak period Westbound Eastbound 00.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 12.00 2.00 4.00 6.00 8.00 10.00 12.00 2.00 4.00 6.00 8.00 10.00 12.00 Time of the day Time of the day 25
Slide 26: Paying for predictability
Paying for predictability Travel time variability 70 60 50 40 Time (min) Time (min) 30 Free Flow Travel Mean 20 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 highe
Slide 27: Dallas and Fort Worth Regional Map
Dallas and Fort Worth Regional Map Managed Lanes regional map LBJ NTE 1-2 NTE 35W 27
Slide 28: North Tarrant Express
Managed Lanes North Tarrant Express Opened on October 4th, 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 PO
Slide 29: Toll rates – tariff threshold
Toll rates – tariff threshold Tariff threshold Toll Rate Toll Rate Cap 0.75 c/mi Demand threshold 3300 pce/h 2-lane sections Speed Speed Threshold 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
Slide 30: Lyndon B Johnson
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 LENGTH: 13 mile section of the IH 635 and IH 35E 108Km Electronic toll CONCESSION PERIOD: 52 years TARIFF POLICY: Open Road Tolling
Slide 31: North Tarrant Express 35W
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 T
Slide 32: Managed Lanes Financial Overview
Managed Lanes Financial Overview 2014 figures Figures in US Dollars Total Investment: 2.10 bn 2.80 bn 1.41 bn Private Equity: 21% 427 m 24% 672 m 31% 430 m Cintra: 243 m (57%) 343 m (51%) 216 m (50%) Meridiam: 141 m (33%) 285 m (42%) 60 m (14%) DPFPS: 43 m (10%) 44 m (7%) 43 m (10%) APG: 112 m (26%)
Slide 33: Ferrovial today: 1Q'15 Results
Ferrovial today: 1Q’15 Results 33
Slide 34: 1Q'15 Results
1Q’15 Results € million Income Statement Revenues 1Q’15 JUN’14 1Q’14 Var% LfL% 1Q’15 1Q’14 VAR.% LfL% 2,147 10.4% Construction 883 795 11.1 3.8 Revenues 1,945 3.0% Airports 1 1 -17.6 -17.6 EBITDA 210 184 14.2% 5.6% Toll Roads 113 91 23.9 19.6 Services 1,162 1,033 12.5 4.4 EBITDA margin 9.8% 9.5% Oth
Slide 35: EBITDA: Diversified portfolio
Diversified portfolio € million 1Q’15 figures Ex – Infrastructure Projects Infrastructure Projects Services Construction Toll Roads Airports Non Capital Intensive Capital Intensive PROFIT GENERATION LONG DURATION CASH GENERATION LONG TERM VALUE Fully consolidated Method Proportional (1) €210Mn EBITD
Slide 36: Disclaimer
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 regardin