Ferrovial N.v. · BME:FER
Ferrovial — 9M 2015 Earnings Presentation
45 slides from Ferrovial's earnings presentation, October 2015
Slide 1: Ferrovial 9M 2015 Investing for Growth
Ferrovial 9M 2015 Investing for Growth 1
Slide 2: FY2014 figures: Human Resources and Environment
FY2014 figures Human Resources Environment 69,088 -39 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 ? Design, financing, construction, operation & maintenance of infrastructure assets & provider of services to cities TOLL ROADS AIRPORTS INFRASTRUCTURE PROJECTS CONSTRUCTION SERVICES EX- INFRASTRUCTURE PROJECTS STRATEGY 1. CF Generation 2. Profitable Growth 3. Shareholder Remuneration 4
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 65% Institutional & Retail Investors 35% Founder’s family members (Chair
Slide 6: Cash Flow Generation: sources and uses
1. Cash Flow Generation: sources and uses € million 2014 figures Sources & Uses Balanced contribution from all businesses c70% of OCF generated in UK, Canada & US Construction 30% 21% Services €1.076mn Toll Roads OCF 22% 27% (dividends) Including dividends 22% 48% Airports (dividends) from projects,
Slide 7: 2. Profitable growth. Solid Financial Situation
2. Profitable growth. Solid Financial Situation € million 9M’15 figures EX–INFRASTRUCTURE PROJECTS Net debt evolution ex-infrastructure projects €mn 1.484 1.663 1.632 1.199 907 NET CASH 31 €1,199mn -1.172 -1.547 -1.987 -3.064 2006 2007 2008 2009 2010 2011 2012 2013 2014 9M´15 PARENT COMPANY INFRASTR
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 0.672 477 510 367 282 308 2015 +81%
Slide 9: Ferrovial today: 9M'15 Results
Ferrovial today: 9M’15 Results Double digit revenues (+12%) & EBITDA (+16%) Asset disposals Supported by operational performance & FX impact • M3 & M4 stakes (75% & 46% respectively) sold for €61mn to Dutch fund DIF. FER maintains 20% in each. Significant traffic growth at key assets • ITR sol
Slide 10: Toll roads: traffic growth and new concessions awarded
Toll roads: traffic growth and new concessions awarded € million 9M’15 figures TRAFFIC GROWTH €174mn 407ETR dividends (+7%). FY’15 div announced (+3%) Canada Traffic growth across our portfolio 407ETR +3.4% Canada, US, Europe. Especially strong 3Q • ETR407: +3.4% YTD (+4.2% in 3Q) with c.+10% in
Slide 11: 407ETR and NTE
407ETR NTE CAD million USD million 9M’15 figures 407-ETR (43%, Equity method) NTE 1-2 Texas (56.7% Global consolidation) +3,4% traffic despite c.+10% in tariff (Feb 2015) 1 year of operations now complete +4.2% traffic in 3Q standalone Traffic +11% 3Q/2Q’15; +24% 2Q/1Q’15 2015 Dividend c.+
Slide 12: Services: Backlog close to all-time high
Services: Backlog close to all-time high € million 9M’15 figures Strong revenue growth LfL (+5.6%) 9M’15 % Spain +5.9%, UK +4.7% & International +33.8% Revenues 3,621 +13.1% EBITDA margins slightly lower at 7.3% (vs 7.7% in 9M’14) EBITDA 264 +7.2% • On the back of weaker performance of UK EBITDA
Slide 13: Construction: Strong international performance
Construction: Strong international performance € million 9M’15 figures International represents 80% of total revenues Strong performance of international revenues (+14.3%) 9M’15 % Revenues 3,233 +10.1% Improved profitability EBITDA 295 +15.2% Driven by end of projects EBITDA % 9.14% +40 bp Str
Slide 14: Heathrow: New record number of passengers
Heathrow: New record number of passengers Equity method, Ferrovial stake 25% 9M’15 figures Strong intercontinental traffic growth Heathrow passenger traffic (9M’15 vs 9M’14) • More seats sold on larger aircraft • North America: increased frequencies 56.9mn passengers (+2.3%) • Middle East with inc
Slide 15: Heathrow: Best ever passenger service levels
Heathrow: Best ever passenger service levels 9M’15 figures Quarterly passenger satisfaction Passenger satisfaction European ranking Q4 2006 – 3Q 2015 3Q 2015 4,13 4,16 4,20 4,09 4,02 ASQ score (out of 5) 3,97 3,98 3,93 4,00 3,89 3,81 3,80 3,76 3,77 3,62 3,65 3,60 3,40 3,20 Q2-07 Q2-08 Q2-09 Q4-10 Q4
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
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Historic consolidated & business units figures 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 strengths
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: Strong dividend flow, equity valuation sharp increase
407 ETR Cash flow and valuation overview Cash Generation Valuation (1999-9M’15) 407 ETR (100%) € million € million Initial equity invest.(62%) -326 mn 14,577 dividends 1,565 mn 100% pay-back 10%Disposal 640 mn in first 10 years 28x 1,879 mn NET CASH IN Valuation x28 525 Maturity 1999 2015 2098 83 ye
Slide 22: Financial overview ($CAD million)
407 ETR Financial overview ($CAD million) 2014 figures Revenues Capital Expenditure CAGR: 8.7% 888 97 90 88 72 77 70 74 420 55 83 years to maturity 49 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: 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 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 2,8 2,9 2,6 3,0 2,5 1,9 2,0 1,9 2,0 1,5 1,2 1,0 0,7 0,6 0 -0,5 -1,7 -2,7 2002 2003 2004 2005 2006
Slide 24: Appendix: Managed Lanes
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Historic consolidated & business units figures 24
Slide 25: 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 25
Slide 26: 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 26
Slide 27: 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 28: Dallas and Fort Worth Regional Map
Dallas and Fort Worth Regional Map Managed Lanes regional map LBJ NTE 1-2 NTE 35W 28
Slide 29: Toll rates – tariff threshold
Toll rates – tariff threshold Tariff threshold Toll Rate Toll Rate Cap 0.8 0.75 4 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 t
Slide 30: 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 31: 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 32: 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 33: Managed Lanes Financial Overview
Managed Lanes Financial Overview 2014 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 34: Appendix: 407ETR vs Managed Lanes
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Historic consolidated & business units figures 34
Slide 35: 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 36: Ferrovial today: 9M'15 Results
Ferrovial today: 9M’15 Results 36
Slide 37: 9M'15 Results
9M’15 Results € million Income Statement Revenues 9M 2015 9M 2014 Var % LfL 9M 2015 9M 2014 Var % LfL Revenues 7,233 6,488 11.5% 4.2% Construction 3,233 2,936 10.1% 2.4% Airports 4 4 3.2% 3.2% EBITDA 815 701 16.2% 5.2% Toll Roads 389 323 20.4% 19.2% Services 3,621 3,202 13.1% 5.6% EBITDA margin 11.3
Slide 38: Diversified portfolio EBITDA
Diversified portfolio € million 9M’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) €815Mn EBITD
Slide 39: Appendix: Historic consolidated & business unit figures
Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 407ETR vs Managed Lanes Historic consolidated & business units figures 39
Slide 40: Historic consolidated figures: 2011-9M'15
Historic mn € consolidated figures: 2011-9M’15 Operating CF ex-infra projects Net debt OCF ex-infra 578 939 1,097 1,076 ND -5,171 -5,106 -5,352 -6,230 -6,491 Op. CF (Construction 1,489 1,663 1,632 1,199 538 N. CASH EX- 907 & Services) 663 INFRA 591 Dividens from infra INFRA PROJ. 462 596 (Toll roads
Slide 41: Construction figures: 2011-9M'15
Construction figures: 2011-9M’15 mn € Operating & investment CF (ex-projects) Revenues 298 304 4,244 4,326 4,064 3,942 OCF ex-infra 236 10% 14% 17% 17% 3,233 31% 33% 15% 27% 100 29% 28% 59% 53% 56% 54% 2011 2012 2013 2014 57% EBITDA ex-project 235 324 329 335 2011 2012 2013 2014 9M'15 Working Capita
Slide 42: Services figures: 2011-9M'15
Services figures: 2011-9M’15 mn € Operating & investment CF (ex-projects) Revenues 491 4,401 OCF ex-infra 359 3,656 3,621 302 2,821 2,951 62% 164 51% 59% 63% 46% 54% 49% 39% 36% 34% 2011 2012 2013 2014 2011 2012 2013 2014 9M'15 EBITDA 274 273 264 321 Spain UK International Dividends received 24 22 2
Slide 43: Toll roads figures: 2011-9M'15
Toll roads figures: 2011-9M’15 Dividends received Portfolio (Km’s) mn € 242 255 220 31 10% 22 25 177 1,974 km 18% Spain 159 EEUU 9% 26 27 concessions 9% Canada 198 217 224 54% Europe 174 133 9 countries Others 2011 2012 2013 2014 9M'15 407-ETR Others Years to maturity Concession length (Km’s) 83 130
Slide 44: Airports figures: 2011-9M'15
Airports figures: 2011-9M’15 Portfolio Heathrow Heathrow (25% stake) *AGS (50% stake) Operational improvements % Passengers rating Heathrow as 2 runways Aberdeen Punctuality Excellent or Very Good 185 destinations Glasgow 81% Southampton 77% 63% 48% 2007 9M'15 2007 9M'15 Dividends received from airp
Slide 45: 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