Ferrovial N.v. · BME:FER
Ferrovial — 9M 2018 Earnings Presentation
19 slides from Ferrovial's earnings presentation, Oct 30, 2018
Slide 1: 9M 2018 Results
9M 2018 Results 30 October 2018
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: Excellent growth from our infrastructure assets
Excellent growth from our infrastructure assets Construction Services in line with expectations Better performance than expected (2017 CMD) Traffic increased across the board Double digit EBITDA growth in main assets Higher dividends from 407ETR & LHR Construction EBIT margin 2.1% Expected improveme
Slide 4: Proportional EBITDA
Proportional EBITDA Reported - 242 12 €580mn* Proportional 293 4 €1,257mn C 10% contribution from Infrastructure assets @ Toll Roads ™ Airports @ Construction ™ Services (ExBHM) | Other *excluding the impact of BHM provision
Slide 5: Toll roads
Toll roads (€ mn) Speeding up " Double digit EBITDA growth = c.50% EBITDA from US assets " Higher dividends from toll roads (€213mn) ° FER received €202mn from 407ETR (+8.9% at 100% CADmn) ° — Rest of toll roads contributed €11mn to FER " Opening of NTE35W Managed Lane (July 2018) ° Performance abov
Slide 6: 407ETR
407ETR (CAD mn) Equity method, Ferrovial stake 43% Toronto, Canada Solid performance despite worse weather conditions in 302018 9M 2018 PERFORMANCE VS 9M 2017 +10.8% 9.9% 1 +8.9% +1.8% Traffic (VKT) Revenues EBITDA Dividends STRONG ECONOMIC GROWTH GDP +2.3% (G.Toronto & Hamilton area) = Total popula
Slide 7: 407ETR customer satisfaction
(CAD mn) 407ETR aaeeaeee mo Conese 98% of customers consider 407 as the faster alternative would you say 407ETRis...... than your alternative route? FASTER 2017 m0, 98% 2015 Mp 1% 2014 b ) 2013 22% ia RELIABLE zou 64% 6% 90% 26% Ti | 2015 2014 2013 WELL MAINTAINED 2017 : 81% 3% £4 sh 2015 58% 0 2014
Slide 8: Managed Lanes Texas, USA
(USD mn) Global Consolidation Managed Lanes Texas, USA Outstanding performance continues +21.0°% REVENUES +24:.7°% +23.8% EBITDA +27.0% +8.0% TRAFFIC* +6.8% NTE - EBITDA EVOLUTION LBJ - EBITDA EVOLUTION 75 9M 2015 9M 2016 9M 2017 9M 2018 9M 2016 9M 2017 9M 2018 MEE EBITDA = —=—=EBITDAmg MEEEEBIIDA =
Slide 9: Managed Lanes macroeconomic indicators
Managed Lanes Macroeconomic indicators show the economic strength of the region EMPLOYMENT POPULATION +3.5% +1.6% DFW payrolls 2018/2017 DFW-Arlington has the largest growth in US in 2017 REAL GDP HOUSEHOLD INCOME +c4% +5.6% DFW Real GDP growth Real DFW median in 2017. between 3% - 5% in 2010- DFW m
Slide 10: NTE 35W, Texas, USA
= ML fully opened July 1982018 * Global Consolidation (53.67%) = Total project investment $1.3bn NTE3SW * Equity injected by FER: €231mn = Length 10.2 miles Texas, USA = Concession period until 2061 Accelerated ramp-up Opening 3 months ahead schedule DENTON Strong traffic performance {ayuaee | v Fas
Slide 11: EBITDA evolution 9M 2015 to 9M 2018
• ✓ • • • 9M 2015 9M 2016 9M2017 9M 2018
Slide 12: Construction
Construction Expected improvement in Q4 but cost pressure has increased 9M 2018 RESULTS DIVISIONAL CONTRIBUTION mrA m BUDIMEX WEBBER 9M 2018 %Ch % CH LFL Revenues 3,837 +B.0% +15.9% EBITDA 109 -33.7% -33.6% Revenues EBITDA % 2.8% EBIT 79 -411% -414% EBIT % 2.1% Order book 11,485 +3.0% +2.1% EBIT jay
Slide 13: Services
Services tem Performance in line with expectations Revenues (-10.1%) affected by: 9M 2018 RESULTS 9M2018 %CH % CHLFL = Reduced activity in the UK. Revenues 4,884 “0 1% ° 71% EBITDA mg 2.0% (Ex-BHM) , , EBITDA 6 -98.1% -98.1% * Ending of the RPC contract (immigration EBITDA % 0.1% contracts in Austra
Slide 14: Net debt (€ mn)
Net debt (€ mn) Net cash, ex-infra: ©906mn = €202mn from 407 ETR = €128mn from Airports = €87mn from Services NCP Dec'l7 Dividends from. EBITDA BHM provision with — WC evolution Taxes Investments Divestments Shareholders’ Other NCP Sept'lS projects ‘no cash impact remuneration 4 {||
Slide 15: Interest rates risk - P&L impact
15 Interest rates risk - P&L impact Hypothetical impact of 100bps interest rate increase: CONSOLIDATED GROSS DEBT CONSOLIDATED GROSS CASH €8,977mn €5,101mn ™ Fixed @ Variable ws +100bps on interest rates: +€43mn net positive impact ¢ +€7mn higher financial expenses ¢ = +€50mn higher financialincome
Slide 16: Delivering today ... Looking forward
Delivering today ... = Strong performance from Infrastructure assets = Assets performed better than expected in 2017 CMD " Growing dividends from Infrastructure = RW3 approval = Fullopening of NTE35W ... Looking forward
Slide 17: Q&A
Slide 18: Construction & Services results
Construction & Services results SERVICES CONSTRUCTION 9M2018 9M2017) %CHLFL 9M2018 9M2017 % CH LFL Revenues 4,884 5,430 -7.1% Revenues 3,837 3,394 15.9% EBITDA 6 309 -98.1% EBIT 79 BS -41.4% EBITDA margin 0.1% 5.7% EBIT margin 2.1% 4.0% Order book* 19,298 19,329 2.1% Order book* 1,485 1,145 2.1% SGA
Slide 19: Investor Relations Department
INVESTOR RELATIONS DEPARTMENT - C/ Principe de Vergara, 135 - 28002 MADRID (Spain) T: +34 91586 27 30 F: +34 91586 28 69 e-mail: [email protected] website: www.ferrovial.com MEMBER OF 2015 Constituent Dow Jones MSCI %:: | MSCI Global Sustainability Indices *“* | Sustainability Indexes In Collaboration