Ferrovial N.v. · BME:FER
Ferrovial — FY2015 Earnings Presentation
49 slides from Ferrovial's earnings presentation, February 2016
Slide 1: Investing for Growth FY 2015
Ferrovial FY 2015 Investing for Growth 1
Slide 2: FY2015 figures: Human Resources and Environment
FY2015 figures Human Resources Environment -43.7 74,032 70% Workforce 30% MALE FEMALE 41.9 AVERAGE AGE 42.8 8.5 YEARS OF SENIORITY 8.4 77% PERMANENT CONTRACT 81% 87% MANAGEMENT 13% Reduction of greenhouse gas emissions 2.5% 0.7% ROTATION INDEX 2009 - 2015 67% NEW RECRUITMENTS 33% 19 Present in 24 co
Slide 3: Who we are… How we create value…
Who we are… We are a transport infrastructure provider/operator with a strong focus on CF generation. Thought based in Spain, c85% of the SOTP is international. 40% of our value comes from downtown Toronto highway, the 407ETR (43% stake). Open & fully electronic, its tariffs have grown +9% 2002-15 C
Slide 4: Ferrovial Overview & Strategy
Ferrovial Overview & Strategy 4
Slide 5: What is Ferrovial?
What is ? World leading private infrastructure provider present in toll roads, airports and cities Design Financing Building Operating Maintaining TOLL ROADS AIRPORTS CONSTRUCTION SERVICES • Leading sponsor of toll roads • Largest airport private investor • Civil engineering • Leading provider of in
Slide 6: 1. Cash Flow Generation
1. Cash Flow Generation € million 2015 figures € 393mn EX-INFRASTRUCTURE EBITDA from Construction PROJECTS Net cash position € 312mn EBITDA from Services Non capital intensive / Backlog visibility / EPS accretive PARENT COMPANY 65% Institutional & Retail Investors 35% Founder’s family members (Chair
Slide 7: 1. Strong cash flow generation
1. Strong cash flow generation € million Excluding Infrastructure Projects OPERATING CASH FLOW 2015 Construction 272 Services 289 Toll Roads (dividends) 267 Airports (dividends) 132 Others (70) TOTAL 889 BALANCED CONTRIBUTION 42% DIVIDENDS FROM INFRA PROJECTS CONSTRUCTION SERVICES 14% 28% 28% 30% SO
Slide 8: 2. Profitable growth. Solid Financial Situation
2. Profitable growth. Solid Financial Situation € million 2015 figures EX–INFRASTRUCTURE PROJECTS Net debt evolution ex-infrastructure projects €mn 1,484 1,663 1,632 1,514 907 NET CASH 31 €1,514mn -1,172 -1,547 -1,987 -3,064 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 PARENT COMPANY INFRASTRUC
Slide 9: 3. Shareholder remuneration (CF Criteria)
3. Shareholder remuneration (CF Criteria) 917 2015 2014 €532mn €510mn +4.4% 308 367 477 510 532 282 +89% 2009 2010 2011 2012 2013 2014 2015 2016 SHAREHOLDER REMUNERATION PROPOSAL 2015 Scrip dividend (€/share) First scrip dividend (equivalent to 2015 complementary dividend)* 0.311 0.304 Second scrip
Slide 10: Ferrovial 2015 Results
10 > Ferrovial 2015 Results ferrovial
Slide 11: 2015 Highlights
2015 Highlights Strong operating growth Traffic growth across the board New awards in core markets €31.5bn record order book Balanced cash generation €889mn Operating Cash Flow 42% from infra projects dividends Solid financial position €1.5bn net cash position Ex-infra projects Shareholder
Slide 12: Strength & visibility: 2015 Results & order book
2015 Results & order book € million 2015 % var. vs 2014 Revenue 9,701 +10% EBITDA 1,027 +4% Net Income 720 +79% Construction order book 8,731 +8% Services order book 22,800 +2% Strength & visibility 12
Slide 13: Toll roads
Toll roads € million TRAFFIC EVOLUTION Self-financing expansion in the toll road business Canada 407ETR • €267mn dividends from projects ETR €242mn, other assets €25mn +3.3% USA NTE +28.8% • €120mn invested in equity of new projects SH130 +15.7% Significant and steady traffic growth in all marke
Slide 14: 407ETR
407ETR Equity method, Ferrovial stake 43% 407ETR FY 2015 RESULTS (CAD mn) POPULATION GROWTH 1991-2011 3,439,131 CAGR +2.9% 3,052,631 2015 % Revenues 1,002 +12.9% 2,600,332 EBITDA 840 +14.2% 2,243,462 1,959,985 1991 1996 2001 2006 2011 HOUSEHOLD INCOME REVENUE / EXPENSE PER TRIP OPEX/Trip Revenue/Tri
Slide 15: NTE
NTE Global Consolidation, Ferrovial stake 57% CORRIDOR TRAFFIC RECOVERY DECREASE IN CONGESTION LEVELS Construction Construction 135 ends begins 100 = MARCH 2010 115 INDEXED VOLUME 95 Average speed 75 55 MAR-10 MAR-11 MAR-12 MAR-13 MAR-14 MAR-15 *+25% segment 1 *morning peak hour (7:00 am) HIGH APPRO
Slide 16: Services
Services € million 2015 % € 289mn operating cash flow (OCF) Revenues 4,897 +11.3% EBITDA 312 -19.4% All-time high order book EBITDA % 6.4% -243 bp €22,800mn (Including JV) Order book 22,800 +1.9% Largest division by OCF contribution PERFORMANCE BY GEOGRAPHY Positive evolution in Spain Profit
Slide 17: Construction
Construction € million 2015 % Revenues 4,287 +8.8% €272mn operation cash flow (OCF) EBITDA 393 +12.8% Improved profitability (EBITDA margin 9.2%) EBITDA % 9.18% +33 bps Driven by Budimex (Poland) and Webber (US) Order book 8,731 +7.9% Strong growth in Budimex OPERATING CASH FLOW • Revenues +6.
Slide 18: Airports: Heathrow (HAH) and AGS
HAH (Equity method, FERROVIAL stake 25.0%) 100% GBP million HAH P&L 2015 % Revenues 2,767 +2.8% GBP300mn ordinary dividend to shareholders EBITDA 1,845 +19.7% (GBP270mn in 2014 ) EBITDA % 66.7% +942 bp Record year in passenger number Net debt 13,437 +3.5% (75mn of passenger; +2.2% vs. 2014) 32%
Slide 19: Heathrow: Best ever passenger service levels
Heathrow: Best ever passenger service levels 2015 figures Quarterly passenger satisfaction Passenger satisfaction European ranking Q4 2006 - Q4 2015 4.50 Q4 2015 4.20 ASQ score (out of 5) 4.00 4.20 4.13 3.80 3.90 3.60 3.40 3.60 3.20 Q2-07 Q2-08 Q2-09 Q4-10 Q4-11 Q4-12 Q4-13 Q4-14 Q4-15 Q2-10 Q2-11 Q
Slide 20: Net debt evolution
Net debt evolution EXCLUDING INFRASTRUCTURE PROJECTS € million 1,632 1,514 580 477 113 -280 -300 -176 -532 Net cash Dec'14 EBITDA ex infra WC Construction & Provision release, Dividends from Toll Net Investment Shareholder Interest, taxes & Net cash Dec'15 projects Services factoring & Other* Roads,
Slide 21: 2015 Results
2015 Results € million Income Statement Revenues 2015 2014 Var % LfL 2015 2014 Var % LfL Construction 4,287 3,942 8.8% 1.2% Revenues 9,701 8,802 10.2% 3.2% Airports 8 9 -9.7% -9.7% Toll Roads 513 432 18.9% 17.2% EBITDA 1,027 983 4.5% -4.2% Services 4,897 4,401 11.3% 4.2% Other -6 18 -133.9% -133.5%
Slide 22: Thank you
Thank you Ferrovial Investor Relations 22 E-mail: [email protected] – Tel: +34 91 586 27 30
Slide 23: Appendix: Introduction to 407ETR Toll road
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Diversified porftolio Historic consolidated & business units figures 23
Slide 24: 407 ETR location
407 ETR Location Area of expansion 407 East extension High density population area Ring road of Toronto 108 km 407 24
Slide 25: 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 26: 407 Fast ETR
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 27: Cash flow and valuation overview
407 ETR Cash flow and valuation overview CASH GENERATION (1999-2015) 407 ETR VALUATION (100%) € million € million Cash Generation Initial equity invest.(62%) -326 mn 100% pay-back 14,577 dividends 1,517 mn in first 10 years 28x 10%Disposal 640 mn Valuation x28 NET CASH IN 1,831 mn 525 MATURITY 1999
Slide 28: Financial overview ($CAD million)
407 ETR Financial overview ($CAD million) 2015 figures REVENUES CAPITAL EXPENDITURE CAGR: 9.1% 1,002 97 90 88 72 77 70 74 70 420 49 55 38 82 years to maturity 2005 2015 OPEX DIVIDENDS CAGR: 4.5% 162 730 750 680 600 104 460 100% pay-back in first 10 years 300 190 145 120 135 85 2005 2015 200520062007
Slide 29: Value creation: EBITDA-GDP-Traffic
407 ETR Value creation: EBITDA-GDP-Traffic annual % growth EBITDA growth Traffic growth GDP growth (annual) 18.9 15.4 15.4 15.6 14.1 14.2 13.2 12.6 11.7 10.8 10.3 9.7 9.7 7.5 7.2 6.1 5.4 5.5 3.1 3.2 3.4 3.4 3.3 2.8 2.9 2.6 3.0 2.5 1.9 2.0 1.9 2.0 1.5 1.2 1.2 1.0 0.7 0.6 0 -0.5 -1.7 -2.7 2002 2003 20
Slide 30: Appendix: Managed Lanes Toll roads
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Diversified porftolio Historic consolidated & business units figures 30
Slide 31: 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 31
Slide 32: 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 32
Slide 33: Dallas and Fort Worth Regional Map
Dallas and Fort Worth Regional Map Managed Lanes regional map LBJ NTE 1-2 NTE 35W 33
Slide 34: Toll rates – tariff threshold
Toll rates – tariff threshold Tariff threshold Toll Rate Toll Rate Cap 0.75 c/mi 0.84 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 th
Slide 35: North Tarrant Express
Managed Lanes North Tarrant Express Opened on October 2014, 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 P
Slide 36: Lyndon B Johnson
Managed Lanes Lyndon B Johnson Opened on September 10th 2015, 3 months ahead of schedule 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 R
Slide 37: 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 38: Managed Lanes Financial Overview
Managed Lanes Financial Overview 2015 figures Figures in US Dollars Total Investment: 2.10 bn 2.6 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%) 107 m (16%) 60 m (14%) DPFPS: 43 m (10%) 44 m (7%) 43 m (10%) APG: 177 m (26%)
Slide 39: Appendix: 407ETR vs Managed Lanes
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Diversified porftolio Historic consolidated & business units figures 39
Slide 40: How does the 407ETR compare to the new Managed Lanes?
How does the 407ETR compare to the new Managed Lanes? 407ETR Managed Lanes (NTE1-2) Participation: • 43%. Equity consolidated • 56.7%. Global consolidation Partners: • SNC Lavalin (17%), CPPIB (40%) • Meridiam (33%), Dallas fire & police pension scheme (10%) Concession period: • 99 years • 52 years
Slide 41: Appendix: Diversified portfolio
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Diversified porftolio Historic consolidated & business units figures 41
Slide 42: Diversified portfolio
Diversified portfolio € million 2015 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 €1,027Mn EBITDA Proportional (
Slide 43: Appendix: Historic figures
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Diversified porftolio Historic consolidated & business units figures 43
Slide 44: Historic consolidated figures: 2011-2015
Historic mn € consolidated figures: 2011-2015 Operating CF ex-infra projects (before tax.) Net debt OCF ex-infra 578 939 1,097 1,076 889 ND -5,171 -5,106 -5,352 -6,230 -4,542 Op. CF (Construction 1,489 1,663 1,632 1,514 538 N. CASH EX- 907 & Services) 663 INFRA 591 560 Dividens from infra INFRA PROJ
Slide 45: Construction figures: 2011-2015
Construction figures: 2011-2015 mn € Operating & investment CF (ex-projects) Revenues 298 304 4,244 4,326 4,064 4,287 272 3,942 OCF ex-infra 236 10% 14% 15% (before tax) 17% 17% 31% 33% 27% 29% 100 29% 59% 53% 56% 54% 2011 2012 2013 2014 2015 56% EBITDA ex-project 235 324 329 335 380 2011 2012 2013
Slide 46: Services figures: 2011-2015
Services figures: 2011-2015 mn € Operating & investment CF (ex-projects) Revenues 491 4,897 4,401 OCF ex-infra 359 3,656 (before tax) 302 289 2,821 2,951 63% 62% 164 51% 59% 46% 54% 49% 39% 36% 34% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 EBITDA ex-project 274 273 264 321 237 Dividends rece
Slide 47: Toll roads figures: 2011-2015
Toll roads figures: 2011-2015 Dividends received Managed Investment mn € 7% 255 267 242 13% 220 25 USA 31 22 25 1,877 km Canada 159 44% 7% Spain 26 27 concessions UK & Ireland 217 224 242 198 8% Rest od Europe 133 9 countries Rest of World 21% 2011 2012 2013 2014 2015 407-ETR Others Years to maturit
Slide 48: Airports figures: 2011-2015
Airports figures: 2011-2015 Portfolio Heathrow Heathrow (25% stake) *AGS (50% stake) Heathrow shareholders 2 runways Aberdeen 183 destinations Glasgow 25% 20% 12.6% 11.2% 11.2% 10% 10% 82 Countries Southampton 80 Airlines Ferrovial Qatar Brittania GIC Alinda CIC USS Dividends received from airports
Slide 49: 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