Ferrovial N.v. · BME:FER
Ferrovial — FY2018 Earnings Presentation
28 slides from Ferrovial's earnings presentation, Feb 28, 2019
Slide 1: FY2018 Results
ferrovial FY2018 Results 28 February 2019
Slide 2: 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
Slide 3: Agenda
Agenda • Strategic review & 2018 Highlights • Business Units • Financial Results • Looking ahead 3
Slide 4: Strategic review
Strategic review Services Held for sale as of Dec. 31st 2018 disposal Working on detailed vendor due diligence Capital allocation Higher value creation over the medium term focused on Current projects providing expertise & credentials infrastructure assets >€40bn expected pipeline, mainly
Slide 5: FY 2018 Highlights
FY 2018 Highlights Better traffic & EBITDA than expected (2017 CMD) Excellent growth from Higher dividends our infrastructure assets Heathrow expansion gets the go ahead in Parliament Services All Services ex-Birmingham on track Construction Construction EBIT margin 2.5% with cost pressure
Slide 6: 2018 main figures
2018 main figures (Figures in EUR) RESULTS FROM CONTINUING OPERATIONS (Reported) Revenue EBITDA Net income 5.7bn 484mn 460mn +14.3% +1.4% +8.6% LfL LfL EX INFRASTRUCTURE FIGURES (including Services) Dividends Operating Net cash from infra projects* cash Flow Position** 623mn 577mn 1.2bn +12.6% -34.6
Slide 7: Proportional EBITDA: 90% contribution from Infrastructure assets
Proportional EBITDA (€ mn) Continuing activities 90% contribution from Infrastructure assets Proportional 1,175 130 €1,306mn Reported 304 180 €484mn 63% INFRASTRUCTURE EX INFRASTRUCTURE 7
Slide 8: Agenda
Agenda • Strategic review & 2018 highlights • Business Units • Financial Results • Looking ahead 8
Slide 9: 407 ETR
407 ETR Equity method, Ferrovial stake 43% Toronto, Canada (CAD mn) 2018 STRONG PERFORMANCE VS 2017 9.7% +9.7% +8.9% +1.4% Traffic (VKT) Revenues EBITDA Dividends 1,390 1,211 920 99
Slide 10: 407 ETR: Valuable proposition to our customers
407 ETR Equity method, Ferrovial stake 43% Valuable proposition to our customers Toronto, Canada 80% of customers agreeing that some, most or even all of their toll costs are offset by time savings TIME 2018 2017 8% 16% 56% 17% 2% 80% 2016 2015 2014 2013 GAS 2018 2017 4% 11% 65% 17% 3% 80% 2016 2015
Slide 11: Managed Lanes
Managed Lanes Global Consolidation Texas, USA (USD mn) Outstanding performance continues NTE LBJ +24.8% REVENUES +24.4% +30.0% EBITDA +28.1% +10.7% TRAFFIC * +6.9% NTE – EBITDA EVOLUTION LBJ – EBITDA EVOLUTION 98 103 82.0% 75 80 84.1% 57 59 80.8% 79.6% 38 77.2% 77.0% 72.9% 2015 2016 2017 2018 2016 2
Slide 12: NTE35W
NTE35W ML fully opened July 19th 2018 Global Consolidation (53.67%) Total project investment $1.3bn Equity injected by FER: $231mn Texas, USA Length 10.2 miles Concession period until 2061 SH183 road & I30 connector opened in 4Q2018 with a very positive traffic impact on NTE & LBJ Stro
Slide 13: Toll Roads
Toll Roads (€ mn) Higher growth USA CONTRIB. TO CONSOLIDATED EBITDA 52% >50% EBITDA from US assets 40% Double digit EBITDA growth 30% Higher dividends (€296mn) 2016 2017 2018 • FER received €273mn from 407 ETR (+8.9% at 100% CADmn) TOLL ROADS RESULTS • Rest of toll roads: €23mn to FER FY 2018
Slide 14: Heathrow
Heathrow (GBP mn) Equity Method UK Heathrow's focus on passenger experience has delivered solid improvements alongside record passenger numbers 2007 2018 82% of Passenger’s rating experience at 45% Heathrow as great or excellent in 2018 82% 40% 15% Great or Fair/ 16% Good Excellent Poor 2% 14 14
Slide 15: Heathrow
Heathrow (GBP mn) Equity Method UK (FER stake 25%) Heathrow hits record pax. numbers, 26 consecutive months of record traffic growth & exceeding 80mn pax./year for the first time HIGHLIGHTS – HEATHROW SP HEATHROW TRAFFIC BY AREA • Revenues: +3.0% 80.1 million passengers (+2.7%) • Cost: +0.8% UK • Ad
Slide 16: Heathrow Expansion timeline
Heathrow Heathrow Completed To come Expansion – expected calendar Government CAA CAA CAA Heathrow consultation Airspace & consultations consultation and final report Future and policy 1 launched to Secretary of Operations State on airline updates engagement consultation 2017 2018 2019 2020 2021 Heat
Slide 17: AGS
AGS (GBP mn) Equity Method (FER stake 50%) UK Successful yield management in retail & car park besides operating expense efficiencies offset the routes cancellations and adverse weather in Q1 AGS EBITDA AGS EBITDA 2018 var. CAGR +9% Traffic 14.8 -2.4% Revenue 213 1.8% 92 97 83 Opex 116 -1.3% 75 EBIT
Slide 18: Construction
Construction Cost pressure impacting 2018 performance 2018 RESULTS DIVISIONAL CONTRIBUTION FY 2018 % Ch % CH LFL Revenues 5,193 +12.2% +14.3% Revenues 54% 32% 14% EBITDA 170 -14.5% -14.6% EBITDA % 3.3% EBIT 127 -21.6% -22.0% EBIT % 2.5% -105.6 bps EBIT 30% 53% 17% Order book 10,965 -1.6% -2.9% Order
Slide 19: Services
Services Services exBMH on track In order to analyze the performance of the Services division, the results of the Services activity & sub-activities are shown below prior classification as held for sale 2018 RESULTS (€ mn) Results impacted by: FY 2018 FY 2017 % CH Revenues 6,785 7,069 -4.0% UK: €7
Slide 20: Agenda
Agenda • Strategic review & 2018 Highlights • Business Units • Financial Results • Looking ahead 20
Slide 21: Services as discontinued activity
Services as discontinued activity MAIN IMPACTS ON FER FINANCIAL ACCOUNTS Accounting for assets & liabilities at the lower of the carrying amount and fair value less costs to sell Provision of €774mn as a result of the impairment of the value of FER’s participation in Amey P&L impact: Both Serv
Slide 22: P&L
P&L (€ mn) 2018 2017 * Revenues 5,737 5,152 • Higher Construction revenues (US projects) EBITDA 484 516 • Lower Contruction profitability (cost pressure). Construction EBIT margin 2.5% (3.5% in 2017) Depreciation -127 -115 Impairment & disposals 82 88 • €84mn capital gains from Greek toll roads dive
Slide 23: Ex-infra Cash Flow & Net cash
Ex-infra Cash Flow & Net cash (€ mn) SOURCES & USES non-cash impact Dividends from projects EBITDA Divestments Financing BHM provision 623 144 230 105 155 Shareholders' WC evolution Investments Other remuneration 55 351 332 520 Net cash, ex-infra*: €1,236mn *Including the net cash position from asse
Slide 24: Agenda
Agenda • Strategic review & 2018 Highlights • Business Units • Financial Results • Looking ahead 24
Slide 25: Shareholder remuneration
Shareholder remuneration 2019 SHAREHOLDER REMUNERATION PROPOSAL (*) ACTUAL 2018 Scrip dividend (reference dividend /share) First scrip dividend (equivalent to 2018 complementary dividend)* 0.32 * 0.314 Second scrip dividend (equivalent to 2019 interim dividend)* 0.42 * 0.407 TOTAL 0.74 0.721 Share b
Slide 26: … looking forward
… looking forward Reducing risks in contracting & Services as discontinued activity Capital allocation focused on infra projects, mainly in the US NTE & LBJ to pay dividends in 2019 - 2020 26
Slide 27: Q&A
Q&A 27 27
Slide 28: 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