ferrovial investors presentation 2011
DESCRIPTION
Ferrovial Investors Presentation 2011TRANSCRIPT
• O v e r v i e w
• B u s i n e s s u n i t s
• O u t l o o k
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
regarding, among others, future growth in the different business lines and the global business,
market share, financial results and other aspects of the activity and situation relating to the
Company.
Such forward looking statements, by its nature, are not guarantees of future performance and
involve risks and uncertainties, and other important factors that could cause actual developments
or results to differ from those expressed in these forward looking statements.
Analysts and investors, and any other person or entity that may need to take decisions, or prepare
or release opinions about the securities issued by the Company, are cautioned not to place undue
reliance on those forward looking statements which speak only as of the date of this
communication. They are all encouraged to consult the Company’s communications and periodic
filings made with the relevant securities markets regulators and, in particular, with the Spanish
Securities Markets Regulator.
INDEX
1. O v e r v i e w
2. B u s i n e s s u n i t s
3. O u t l o o k
4. A p p e n d i x
4
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Company overview
INFRASTRUCTURE
PROJECTS
PARENT COMPANY
Ring fenced debt
EXCL INFRA PROJECTS
Net cash position
Controlling Shareholder 46%Free float 54%
• Capital intensive
• Inflation protected
• LT duration & financing
• EPS reflects interest expenses
• Non capital intensive
• Backlog visibility
• EPS accretive
5
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Business overview
INFRASTRUCTURE
PROJECTS
(96% EBITDA International)
PARENT COMPANY
EXCL INFRA PROJECTS
(53% EBITDA International)
� Leading sponsor of tollroadsinfrastructure development worldwide
� Key developer of ETR 407� Design, build, finance & operation
� Leading European airport operator
� Ownership and manager of 6 UK
airports, including Heathrow and
Stansted
� One of the European construction leading groups
� Civil engineering, industrial construction & water treatment
� Leading provider of infrastructure services
� Infrastructure & Maintenance management
� Urban services & waste management
6
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Cash flow overview
• Focus on project’s credit rating
• EBITDA resilient assets
• Well spread maturities
• Focus on cash, not growth
• Commitment to strong BS
• Indebtedness target: Max. 2X EBITDA
� 407< 5% per year
� BAA < 10% per year
Cintra's dividends& BAA future dividends
Operating cash flow
New projects’ equity
PARENT COMPANY
INFRASTRUCTURE
PROJECTS
EXCL INFRA PROJECTS
Shareholders’dividends
7
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Debt structure overview
PARENT
COMPANY
INFRASTRUCTURE
PROJECTS
EXCL INFRA PROJECTS • Net cash position
• Maximum debt target 2X EBITDA
Non Infrastructure Net debt evolution (2006-2011)
Debt streamlining
Debt reduction
-31
-280
3,065
1,9871,547
1,1723,2x2,1x
1,5x 1,7x
2006 2007 2008 2009 2010 9M 11
Net Debt Net Debt /EBITDA
NET CASH €280m
NET DEBT€20,690m
� BAA ,407 ETR 2012 maturities covered with available
liquidity
� Long dated toll road concession agreements:
- Weighted average remaining life > 70 years
- Aggregated PLCR ( 1 ) of 5.26 XTOLL ROADS
Net Debt €5,429mAIRPORTS
Net Debt €14,910m
( 1 ) PLCR: Project Life Coverage Ratio
Ring fenced debt
8
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Sound financial position at ferrovial excl-infrastructure
(1) There are no significant maturities expected beyond 2015
No material maturities until 2015
High liquidity available
(1)
14 34 21102
1,025
2011 2012 2013 2014 2015
1,250
2,259
1,009
Total cash Undrawn lines Total liquidity
9
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Resilience
&
Growth
Probably, the two best infra assets in the worldProbably, the two best infra assets in the worldProbably, the two best infra assets in the world
HEATHROWETR-407
Traffic
Tariff review +7.5% + RPI%Freedom
-0.5%-0.5%
Combined EBITDA over € 1,000mn
Local currency and local GAAP
+18.8%+18.8%+8.4%+8.4%
Top world class infrastructure assets
EBITDA
Rating A- A-
+6.1%+6.1%
9M 11/10
10
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Top world class infrastructure assets
570 553637
783881
2006 2007 2008 2009 2010
407 ETR
EBITDA evolution(CAD million)
Heathrow
EBITDA evolution(GBP million)
CAGR (06-10): 11.5%
353408 414 444
500
2006 2007 2008 2009 2010
CAGR (06-10): 9.1%
Successful ongoing access to capital markets
Bond Issuance Issuance Date CADm Maturity Date
Senior Bond Jan - 09 300 Jan - 12
Senior Bond Jan - 09 200 Jan - 14
Senior Bond Jun - 10 500 Jun - 15
Senior Bond Jun - 10 300 Jun - 20
Senior Bond Nov - 10 400 May - 21
Subordinated Bond Nov - 10 300 Nov - 17
TOTAL Amount 2,000
Bond Issuance Issuance Date £m Maturity Date
Bond (GBP) Dec - 09 700 Dec - 26
Index-Linked Bond (GBP) Dec - 09 235 Dec - 39
Class B Bond (GBP) Sep - 10 400 Sep - 18
Bond (EUR) Oct - 10 434 Oct - 16
High Yield Bond (GBP) Nov - 10 325 Mar - 17
Bond (GBP) May - 11 750 May - 41
Index-Linked Bond (GBP) May - 11 130 Dec - 39
Bond (USD) Jun - 11 621 Jul - 21
TOTAL Amount 3,595
Resilience through the crisis
11
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5 0 %
2 5 %
9 %
1 6 %3 7 %
3 3 %
2 3 %
7 %
C O N S T R U C T I O N
S E R V I CE S
T O L L R O A D S
A I R P O R T S
FY 2010
EBITDAREVENUES
UK 56% Spain 15%North America 15% Other 14%
Diversified portfolio
12
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How we create value?
Asset rotation
Asset rotation
Cash flowgeneration
Cash flowgeneration
13
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Solid cash flow generation
Strong cash flow generation from
Construction & Services
Cash flow upstream from
infrastructure projects
Resilient performance through the crisis
€m
7
90 105 116
355
188 209
406
130178
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
*Before tax payment since 2009
428355
450
344
572
283 288
464406 373
5 177
168
220 239
267333
276
-312001 2002 2003 2004 2005 2006 2007 2008 2009 2010
C o nstruc t io n Serv ices
433
355
419
521
740
503527
731 739
649
14
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Liquid and valuable portfolio
400398
2007 Disposal price (2009)
880
575
Consensus Disposal price (2011)
67 69
2007 Disposal price (2010)
367380
2007 Disposal price (2010)
6,7346,800
2007 Disposal price (2010)
+1%
+3%+4%+1%
+53%
EV/EBITDA
Spanish car parks
Chilean Toll roads M45 Toll road407 ETR
Naples Airport Swissport
€m
€m€m
€m€m
(1) NAV published by Cintra in 2007, (2) Analyst EV consensus - Disposal price: 100% Equity value
(1)
(1) (1) (1)
(2)
x7.0
x13.3
Venice Airport(Listed Peer)
Disposal price (2010)
Value crystallization through the crisis
15
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
100% BAA / €m
(1) Analysts consensus on BAA September 2011: 100% Equity value. Ferrovial sold 5.88% stake in BAA last 10th October 2011
BAA
Analysts consensus Implied valuation
5,527
868
2,387
Aug´2010 Sept´2011 Oct´2011
x6.4
Oct´10
Divestment process stars
OctOct´́1010
Divestment process stars
Sept´11SeptSept´́1111Oct´11
Deal announcement
OctOct´́1111
Deal announcement
x2.3
Previous todeal announcement
BAA´s traded value materially above market consensus
16
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Strategy based on core competences & financial discipline
FinancialDiscipline
� Investment selection criteria:
� Congested corridors, lack of alternatives, sound legal framework,…
� Focus on cash generation & un-levered IRR
� Active portfolio management to realize value creation:
� 407 ETR example (100% equity value data):
1999 (acquisition) 2004 (Cintra IPO) 2010 (10% stake sold)
€0.5bn €3.8bn €6.8bn
Core competences
� Solving complex situations in design, tariff flexibility, billing,…
� Operational turnarounds based on cost efficiency
17
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Track record
� 3 years of defensive play
� Ready to take selective investments
� Competitive advantages
• Debt reduction
• Value resilience
• Financial discipline
• Selective infra projects pipeline
• Strong backlog
• Reputation
• Geographically diversified experience
(1968 onwards: Chile, Australia, US, UK, etc.)
• Co-investors support over time
• Engineering & operational expertise
• Balance Sheet strength
18
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
INDEX
1. O v e r v i e w
2. B u s i n e s s u n i t s
3. O u t l o o k
4. A p p e n d i x
19
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Business units
PARENT COMPANY
INFRASTRUCTURE PROJECTS
EXCL INFRA PROJECTS
TOLL ROADS AIRPORTS
CONSTRUCTION SERVICES
20
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Infrastructure
Toll roads
+17.2%
INDIANA1
CHICAGO
ETR1
Traffic
EBITDA
(*): Like-for-Like: Excluding forex impact, perimeter variations and fair value adjustments (1) Equity method
E B I T D A*
9M 2011
EBITDA growth despite negative traffic
due to tariffs and grantor payments
�
15,3%
-6,6%
12,2%
-3,4%
-0,5%
8,4%
21
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Managed Lanes
solution to urban congestion
“Existing traffic on the heavily congested corridor provides a substantial and much
more clearly established pool of potential users than is typical for a green field toll
road” Moodys
innovative
A simple
efficient
22
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
New assets landmark
A solution to congestion on “existing urban corridors”
Active management of “newly added capacity” through tolling
by means of
Managed Lanes
Free
Lanes
Free
Lanes
New Tolled
LanesSpeed >50mph
“Express Tollway within an Existing Highway”
23
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
+4.9%
+9.7%
+16.2%
T r a f f i c* R e v e n u e s* E B I T D A*
� Positive inflation exposure: Tariffs LHR (7.5% + RPI)
� 2011 = 12.2%� 2012 = 12.7%
� Strong performance of Scottish airports Traffic +8%, EBITDA +11%
(*): Like-for-Like: Excluding forex impact, perimeter variations and fair value adjustments
Higher Traffic, Tariffs and Retail drive EBITDA
Infrastructure
Airports
�
9M 2011
24
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
(*): Like-for-Like: Excluding forex impact, perimeter variations and fair value adjustments
RECORD BACKLOGRobust operating performance
Excl Infra projects
Services
�
55%
INTERNATIONAL
5,0
5,2
4,7
4,5
6,6
3,7
4,6
5,0
5,5
5,4
2006
2007
2008
2009
2010
International Spain
8.7
9.8
9.7
10.0
12.0
€ bn
+8.5%
+8.7%
R e v e n u e s* E B I T D A*
9M 2011
25
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
(*): Like-for-Like: Excluding forex impact, perimeter variations and fair value adjustments
68%
INTERNATIONAL
RECORD BACKLOG
CIVIL
76%I n t e r n a t i o n a l D o m e s t i c
Stability at Revenues and EBIT
+4.8%
+4.5%
-12.9%
-2%
Revenues*
EBIT*
Excl Infra projects
Construction
�
3,0
3,6
3,6
4,6
6,6
5,6
5,6
5,2
4,2
3,6
2006
2007
2008
2009
2010
International Spain
8.1
9.2
8.8
8.8
10.2
€ bn
9M 2011
26
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
INDEX
1. O v e r v i e w
2. B u s i n e s s u n i t s
3. O u t l o o k
4. A p p e n d i x
27
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ORGANIC INFLATION
Operational outlook
NEW PROJECTS ASSET ROTATION
GROWTH
28
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Financial outlook
• Refinancing & amortization ahead of
maturities
• Increasing capital markets presence
• Reducing dependence on banks
• Low leverage excluding infra projects
• Investment focus on core know-how
• Equity stakes with operational control
OPTIMIZATIONDISCIPLINE &
29
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Looking forward
D E L I V E R Y
F L E X I B I L I T Y
G R O W T H
Portfolio management to crystallize value
Financial discipline to invest
Net cash position at parent company
Tariffs above inflation
Traffic recovery link to GDP
Backlog
30
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
INDEX
1. O v e r v i e w
2. B u s i n e s s u n i t s
3. O u t l o o k
4. A p p e n d i x
31
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
• 9M ’ 1 1 R e s u l t s
• B u s i n e s s d e s c r i p t i o n
• I n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a d
• M a n a g e d L a n e s T o l l r o a d s
• 2 0 1 0 F u l l Y e a r R e s u l t s
•• 9M ’ 1 1 R e s u l t s 9M ’ 1 1 R e s u l t s
•• B u s i n e s s d e s c r i p t i o n B u s i n e s s d e s c r i p t i o n
•• I n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a dI n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a d
•• M a n a g e d L a n e s T o l l r o a d sM a n a g e d L a n e s T o l l r o a d s
•• 2 0 1 0 F u l l Y e a r R e s u l t s2 0 1 0 F u l l Y e a r R e s u l t s
A p p e n d i xA p p e n d i xA p p e n d i x
32
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9M 2011 results
SEPSEP’’1111 VarVar%%
Revenues
EBITDA
EBITDA margin
Period depreciation
EBIT
EBIT margin
Disposals & Impairments
Financial results
Equity-accounted affiliates
EBT
Corporate income tax
CONSOLIDATED NET INCOME
Minorities
NET INCOME ATTRIBUTED
7,640
1,691
22.1%
667
1,024
13.4%
235
-1,085
31
205
277
483
-1
482
Construction
Airports
Toll Roads
Services
Others
Total
3,143.8
2,160.6
300.3
2,068.1
-32.7
7,640.1
3,313.2
2,091.0
762.0
2,884.1
80.8
9,131.0
-5.1
3.3
-60.6
-28.3
n.s.
-16.3
-3.7
9.4
11.3
8.5
1.9
Construction
Airports
Toll Roads
Services
Others
Total
171.4
1,083.9
222.8
208.4
4.4
1,691.0
172.6
952.9
569.0
277.7
5.2
1,977.3
-0.6
13.8
-60.8
-24.9
n.s.
-14.5
1.1
16.2
17.2
8.7
13.1
SEPSEP´́1111 SEPSEP´́1010 VAR.VAR.--%% LL--ff--L%L%
VAR.%VAR.% LL--ff--L%L%
9,131
1,977
21.7%
760
1,218
13.3%
264
-1,364
47
164
91
256
59
315
SEPSEP’’1010
Construction backlog
Services backlog
Traffic evolutionTraffic evolution
ETR-407
Chicago Skyway
Indiana Toll Road
Autema
Ausol I
Ausol II
BAA (million passengers)
VAR%VAR%
9,921
12,520
SEPSEP´́1111
1,734,672
42,679
27,441
19,224
14,812
16,087
83
10,18610,186
12,37812,378
SEPSEP´́1010
1,743,523
45,693
28,395
20,414
16,346
17,155
79
-2.6
1.1
VARVAR%
-0.5
-6.6
-3.4
-5.8
-9.4
-6.2
4.9
SEPSEP´́1111 SEPSEP´́1010
SEPSEP´́1111 SEPSEP´́1010
LL--ff--L%L%
+1.9%
+13.1%
+26.1%
+5.3%
-16.3%
-14.5%
-15.9%
-20.5%
(*): Like-for-Like: Excluding forex impact, perimeter variations and fair value adjustments
33
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Debt maturity (€m) No more than 10% maturities in any single year
11.9 years average life
Interest Rate Exposure 2010
610
1.400
2.168
1.417 1.514
3.896
4.689
3.389
1.073 1.000
1025
3
37
102
21
34
14
2011 2012 2013 2014 2015 2016-2020 2021-2030 2031-2040 2041-2060 >2061
Infrastructure Excl Infrastructure
Variable 25%
Fixed 18%
Hedged 32%
Inflation Linked 25%
34
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
• 9M ’ 1 1 R e s u l t s
• B u s i n e s s d e s c r i p t i o n
• I n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a d
• M a n a g e d L a n e s T o l l r o a d s
• 2 0 1 0 F u l l Y e a r R e s u l t s
•• 9M ’ 1 1 R e s u l t s 9M ’ 1 1 R e s u l t s
•• B u s i n e s s d e s c r i p t i o n B u s i n e s s d e s c r i p t i o n
•• I n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a dI n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a d
•• M a n a g e d L a n e s T o l l r o a d sM a n a g e d L a n e s T o l l r o a d s
•• 2 0 1 0 F u l l Y e a r R e s u l t s2 0 1 0 F u l l Y e a r R e s u l t s
A p p e n d i xA p p e n d i xA p p e n d i x
35
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Ferrovial's businesses comprise all the Infrastructures value chain
Construction
division
Services
divisionInfrastructure's
operator
MaintenanceConstruction
Toll Roads Airports
Operation
What is Ferrovial?Business description
36
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Construction Airports Toll Roads
• Civil Engineering
• Building
• Industrial
�One of Largest
European
Contractors
• Development,
Financing,
Ownership,
Management &
Operation
� World’s Largest
Airport Company
• Development,
Financing,
Concession,
Management &
Operation
�World’s Largest
Private Developer
of Road
Infrastructure
• Infrastructure &
Facility
Management
• Urban Services &
Waste
�One of Largest
European Services
& Maintenance
Company
End-to-end infrastructure company: DFBOM
Services
Group Profile - Business
What is Ferrovial?Business description
37
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Group Profile – Main Companies
TOLL ROADS SERVICESCONSTRUCTION AIRPORTS
What is Ferrovial?Business description
38
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
8%
BY AIRPORT
Revenues: €2,794mn
EBITDA´10: €1,272mnMargin 45.5%
HEATHROW
81%
STANSTEAD
SCOTISH
8%
EDINBURGH
GLASGOW
ABERDEEN
STANSTEAD
SOUTHAMPTON
HEATHROW
3%OTHERS
Airports
FY 2010
Business description
39
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8%
HEATHROW81%STANSTED
SCOTTISH
8%
3%OTHERS
17%HEATHROW63%
STANSTED
SCOTTISH
18%
2%OTHERS
AirportsFY 2010
E B I T DAT R A F F IC
40
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Largest airport operator in the world
Heathrow, world’s busiest international airport
109 mn passengers (FY2010)
79% international passengers in the UK
15,000 employees worldwide
Over 700 destinations served by UK airports
106,000 sqm retail space in the UK
112,000 car parking spaces
BAA’s Operational highlightsBusiness description
41
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BristolBelfast CityBAA Gatwick
BAA HeathrowBAA StanstedBAA EdinburghBAA GlasgowBAA AberdeenBAA Southampton
Cerro Moreno
ASUR(9 Mexican airports)
Sydney
Previous assets in portfolio
Current portfolio of assets
BAA Budapest
BAA Retail contracts: Boston, Baltimore, Cleveland, Pittsburgh
BAA MelbourneBAA PerthBAA DarwinBAA Alice SpringsBAA LauncestonBAA Tennant Creek
BAA Naples
Asset's Portfolio: Past & PresentBusiness description
42
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
EBITDA´10: €630mnMargin 72.5%
Revenues: €869mn
FY 2010
Toll roadsBusiness description
43
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Canada407 ETR
USAChicago SkywayIndiana Toll RoadSH130North Tarrant ExpressIH635
GreceeIonian RoadsCentral Greece
IrelandEurolink MotorwayM-3
SpainAutemaAusol I y IIM-203R-4Ocaña-La Roda
PortugalEuroscut AlgarveEuroscut Norte LitoralEuroscut Açores
Portfolio
NORTH AMERICA
EUROPE
Business description
44
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EBITDA´10: €410mnMargin 10.5%
Revenues: €3,896mn
Backlog: €12,003mn
Services
FY 2010
Business description
45
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Waste
Buildings
Local ro
ads
National
Roads
Railwa
ys
Recycling
Landfield
Pick-up
Street
cleaning
Hard FM
Real Estate
Management
Gardening
Cleaning
Sewage
Lighting
of Traffic
Planning and Management
Programmedmaintenance
Railway
improvements
Structu
res
Bridges
Signalling
Projects
Assets management
Assets management
Assets managementAssets m
anagement
Asse
ts management
Smart CitiesSmart CitiesIntelligent InfrastructuresIntelligent Infrastructures
Wintermaintenance
+ Value added - - Value added +
Business Portfolio / Activities
FERROVIAL
Services
Business description
46
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EBITDA: €231mnMargin 5.1%
Revenues: €4,525mn
Construction
FY 2010
Business description
47
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ConstructionFY 2010
14%
CIVIL WORKS82%
NON RESIDENTIAL4%RESIDENTIAL
Geographical ExposureType of work
35%
INTERNATIONAL65%
DOMESTIC
48
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
PortugalPortugal• Among Civil Works leaders
SCUT Norte Litoral: +300 MESCUT Norte Litoral: +300 MESCUT Algarve: +250 MESCUT Algarve: +250 MESCUT Azores: +250 MESCUT Azores: +250 ME
IrelandIreland• Among Civil Works leaders
M3 Clonee: +500 MEM3 Clonee: +500 MEN4 / N6 N4 / N6 KinnegadKinnegad: +300 ME: +300 ME
DFB0 Northern Ireland: +300 MEDFB0 Northern Ireland: +300 ME
PolandPoland• 1st Polish Construction Company
SS--8 8 WWęęzezełł KonotopaKonotopa: +450 ME: +450 MEAA--4 4 DebicaDebica –– RzeszowRzeszow: +350 ME: +350 ME
AA--1 1 PyrzowicePyrzowice –– PiekaryPiekary: +300 ME: +300 ME
ItalyItaly• Contractor to Italy’s Railways Company (Italfer)
HS Railway HS Railway AndoraAndora--San Lorenzo: +300 MESan Lorenzo: +300 ME
USAUSA• 1st Texas Road Contractor
LBJ: +1.600 MELBJ: +1.600 MENTE: +1.100 MENTE: +1.100 MESH 130: +600 MESH 130: +600 ME
Indiana Toll: +200 MEIndiana Toll: +200 ME
CanadaCanada• D&B contractor to CINTRA
407 ETR: +300 ME407 ETR: +300 ME
ChileChile• D&B contractor to CINTRA• One of first PPP road
contractors to enter the market
Santiago Santiago -- TalcaTalcaTalca Talca –– ChillChilláánn
CollipulliCollipulli -- TemucoTemucoTemuco Temuco -- RRííoo BuenoBueno
GreeceGreece• D&B contractor to CINTRA
E65 Central Greece: +1.300 MEE65 Central Greece: +1.300 MEIonia Ionia OdosOdos Road: +1.000 MERoad: +1.000 ME
UKUK•• D&B contractor to BAA and Amey
• Working since year 2006
HET: +900 MEHET: +900 MEBradford Schools 2nd ph.: +200 MEBradford Schools 2nd ph.: +200 ME
Year 2000: acquisition of a 59% stake in Budimex
Year 2005: acquisition of a 100% stake in Webber
+900 ME+900 ME
International experienceBusiness description
49
E-mail: [email protected] – Tel: +34 91 586 27 30
• 9M ’ 1 1 R e s u l t s
• B u s i n e s s d e s c r i p t i o n
• I n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a d
• M a n a g e d L a n e s T o l l r o a d s
• 2 0 1 0 F u l l Y e a r R e s u l t s
•• 9M ’ 1 1 R e s u l t s9M ’ 1 1 R e s u l t s
•• B u s i n e s s d e s c r i p t i o n B u s i n e s s d e s c r i p t i o n
•• I n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a dI n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a d
•• M a n a g e d L a n e s T o l l r o a d sM a n a g e d L a n e s T o l l r o a d s
•• 2 0 1 0 F u l l Y e a r R e s u l t s2 0 1 0 F u l l Y e a r R e s u l t s
A p p e n d i xA p p e n d i xA p p e n d i x
50
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
775 1,937
-563 5,256
Would you buy this company...?
Figures in million $CAN
Accountinglosses
Highdebt
Shareholder's fundShareholder's fund DebtDebt
1999:
27x27xDebt/Ebitda
1999
2010
407 ETR
51
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Ferrovial bought this company...
V a l u a t i o nV a l u a t i o n( 1 0 0 % )( 1 0 0 % )
Strong dividend flow
Equity valuation sharp increase
Initial equity investment (62%) (326mn)
Dividends (00 - 10) 443mn
10% disposal 640mn
NET CASH IN 757mn
2098
M a t u r i t yM a t u r i t y
100% pay-back
first 10 years
Valuation x13
* December´10 analysts consensus
2000 2010*
13x13x
6,850
525
407 ETRC a s h g e n e r a t i o nC a s h g e n e r a t i o n(1999 (1999 –– 2010)2010)
407 ETR
87 years to maturity
52
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Investment Summary
45%
230%
299%
Traffic
Revenues
EBITDA
407 ETR Key indicators performance(%) 2000-2010
Strong EBITDA growth thanks to Revenues expansion and Cost control
CAGR: 3.8%
CAGR: 12.7%
CAGR: 14.8%
407 ETR
53
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
All Electronic Roadside Tolling System
407 ETR
54
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
43% 40% 17%
CINTRA CPPIB LAVALIN
KEY CHARACTERISTICS
SHAREHOLDERS’ STRUCTURE
108KmElectronic toll
DESCRIPTION:
LENGTH:
TRAFFIC METTICS ’10:
CONCESSION PERIOD:
TARIFF POLICY:
RESULTS 2010:
Ring road of Toronto
Commuting
108Km.
Average work day trips: 380,679
Average revenues per trip: 5.44$
Tolled kilometres (VKT): 2,336 million
1999-2098
Years 99 (remaining 87 years)
High flexibility based on traffic performance
Revenues: CAD 624M
EBITDA: CAD 500M
407-ETR
● No toll-booths, fully electronic free flow tolling system
● No stopping or slow-downs to pay toll
● Transponder not required (except for trucks). If a valid
transponder is not detected, digital photographs are
taken at entry and exit. Transponders are increasingly
popular
● Tolls billed monthly
● Senior debt rating: A category
407 ETR
BALANCE SHHET´S STRUCTURE
Property, plan & Intangible 3,897 -571 EquityCash & ST Investments 617 5,527 Debt
Other assets 461 251 Other liabilities
4,975 ASSETS LIABILITIES
Mar´11 / CAD Mn
55
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
407 ETR
LOCATION
Greater Toronto Area
23% of Canada population
TRAFFIC
Alternatives routes
are highly congested
HIGH HOUSEHOLD INCOME
46% higherthan Canada average
NO REGULATORY
REVIEWS
During concession life
(99 years)
SPEED
Alternatives routes 40kph
vs 100kçph at 407
NON-STOP TOLL FACILITY
Fully electronic with interchanges every 3km
TOLL RATE HIGH
FLEXIBILITY
Including segment,
direction, time of the day
FAST
Reliable travel times
FastSafeReliable
56
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Financial overview ($CAD million)
420
624
2005 2010
316
500
77%
79%
76%75%
80%
2005 2010
27
10
1999 2010
85
145120 135
300
190
2005 2006 2007 2008 2009 2010
49
97 90
38
7772
2005 2006 2007 2008 2009 2010
Revenues
EBITDA
Capital Expenditure
Dividends
Debt / EBITDA X
OPEX
87 years to
maturity
100% pay-back in
first 10 years
Free-tariff revision
7.7% CAGR 02-10*
* Tariff increase for light Vehicles in Peak hours regular zone (%)
CAGR: 8.2%
CAGR: 9.6%
104124
2005 2010
CAGR: 3.6%
EBITDA %
407 ETR
57
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
• 9M ’ 1 1 R e s u l t s
• B u s i n e s s d e s c r i p t i o n
• I n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a d
• M a n a g e d L a n e s T o l l r o a d s
• 2 0 1 0 F u l l Y e a r R e s u l t s
•• 9M ’ 1 1 R e s u l t s9M ’ 1 1 R e s u l t s
•• B u s i n e s s d e s c r i p t i o n B u s i n e s s d e s c r i p t i o n
•• I n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a dI n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a d
•• M a n a g e d L a n e s T o l l r o a d sM a n a g e d L a n e s T o l l r o a d s
•• 2 0 1 0 F u l l Y e a r R e s u l t s2 0 1 0 F u l l Y e a r R e s u l t s
A p p e n d i xA p p e n d i xA p p e n d i x
58
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Managed Lanes
solution to urban congestion
“Existing traffic on the heavily congested corridor provides a substantial and much
more clearly established pool of potential users than is typical for a green field toll
road” Moodys
innovative
A simple
efficient
59
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
New assets landmark
A solution to congestion on “existing urban corridors”
Active management of “newly added capacity” through tolling
by means of
Managed Lanes
Free
Lanes
Free
Lanes
Tolled LanesSpeed >50mph
“Express Tollway within an Existing Highway”
60
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Concept
“Express Tollway within an existing highway”
Managed Lanes
Congestion relief ML provides further capacity
Travel time reliability ML provides time saving and reliability
Dynamic toll regime Revenue optimization (Tariff may vary every 5´)
Electronic collection Barrier free, no slowdown
Peak spreading Highly congested
Proven solution Former experience are positive
Motorists’ choice To pay or not to pay
Safety Lower percentage of freight
61
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Total new capacity with ML: 10,700 vehicles/hour
Current capacity: 6,300 vehicles/hour
80% of Capacity
Time of the day
Eastbound
Westbound
NTE data
• Bordering capacity levels from 6am-7pm.
• Both directions show signs of capacity being reached resulting in a remarkable peak spreading
Congestion relief (NTE)
00.00
60 m
in A
WD
T
2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00
Congestion in both directions ∫∫∫∫ 13 hours/day
Managed Lanes
62
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Level of demand
Time of the day
Eastbound
Westbound
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
NTENTE 407ETR
Managed Lanes
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
Peak period
(untolled) (tolled)
63
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Travel time reliability (NTE)
Travel time on free lanes
*
Travel time on Managed
LanesTravel Time (Minutes)
Distance (miles)
For a 7 mile trip, a user can save up to 30-40min in rush hour if using the ML
(NTE Eastbound lanes)
Based on NTE data
45
40
35
30
25
20
15
10
5
0
30-40min
7 miles
ML will provide users a reliable and certain travel time
0 1 2 3 4 5 6 7
Managed Lanes
(*) Peak period observations
64
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Transportation & Public
• Real alternative to urban traffic congestion
• New routes are unfeasible (lack of space)
• Relief to development issues in urban areas
• A choice to users to pay, or not
• Safety
• Sustainable solution (less emissions)
Why Managed Lanes?
Investor
• Consolidated corridors, heavily congested
• No behaviour changes to induce traffic
• High value of time
− Commuters ( main users)
− willingness to pay
• Dynamic tolls to optimize revenues
• Complex projects
− D&B, Traffic & operational risk
• Federal funds available (TIFIA)
Managed Lanes
65
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
• Texas economic robustness as compared to the US
− GSP 2010 : Texas 3.4% (USA 2.8%).
− Unemployment rates: (April´11): Texas 8% (USA 9%)
− Over the last ten years, Texas GSP* growth 3.37% (USA 1.56%) .
Why Managed Lanes in Texas?
*CAGR 1991-2010, adjusted by inflation 2 According to the US Census Bureau 3 US Census 2007-2009 3 year median household income
• Growth in population & employment should lead to future traffic demand
− DFW is the 6th most congested region in the United States
− 5 of the 10 most congested locations in the DFW area are located in the projects scope
− one of the fastest growing metropolitan areas in the U.S2.
− Since 2000, the Dallas/Fort Worth has experienced 23.4% total growth, ranking only behind the Houston and Atlanta
metropolitan areas in overall percentage growth
• High household income area ���� tolls are affordable
− DFW area $55,486, 18% over Texas average
Managed Lanes
66
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Ferrovial as strategic partner for Managed Lanes (I)
End-to-end approach to infrastructures:
Design, Financing, Construction & Operations
D&BTechnical solution
O&MOperational management
Competitive advantage & value added in complex projects
Less competitors & Higher returns
CONSTRUCTION
BRANCH
TOLL ROAD
BRANCH
Managed Lanes
67
E-mail: [email protected] – Tel: +34 91 586 27 30
51% 42% 7%
CINTRA MERIDIANDALLAS
FIRE&POLICE PENSION SCHEME
KEY CHARACTERISTICS
SHAREHOLDERS’ STRUCTURE
108KmElectronic toll
DESCRIPTION:
LENGTH:
CONCESSION PERIOD:
TARIFF POLICY:
IH 635 (Dallas County), the most populous county in Texas
13 mile section of the IH 635 and IH 35E
52 years
Open Road Tolling System (no toll booths) with a dynamic
tolling regime (every 5 minutes) to maintain at all times a
minimum speed of 50 mph
Lyndon B Johnson
● Heavy congested area , almost 250.000 cars per day
● No toll-booths, fully electronic free flow tolling system
● Tollway within a freeway: Motorists will be provided
with a choice of driving in non-tolled GP lanes or paying
a toll to bypass such GP lanes
● Tolls setting to ensure minimum speed on new lanes
● As demand grows and capacity becomes scarce, pricing
power increases
● Physically separated from the GP lanes with controlled
access
25% 54% 20%
FINANCIAL STRUCTURE
EQUITY DEBT PUBLIC FUNDS
Managed Lanes
68
E-mail: [email protected] – Tel: +34 91 586 27 30
57% 33% 10%
CINTRA MERIDIANDALLAS
FIRE&POLICE PENSION SCHEME
KEY CHARACTERISTICS
SHAREHOLDERS’ STRUCTURE
DESCRIPTION:
LENGTH:
CONCESSION PERIOD:
TARIFF POLICY:
Dallas-Fort Worth Metroplex, Major thoroughfares
between Fort Worth and DFW Airport
13 mile section (IH 820 & SH 183 in Tarrant County)
52 years
Open Road Tolling System (no toll booths) with a dynamic
tolling regime (every 5 minutes) to maintain at all times a
minimum speed of 50 mph
North Tarrant Express
● Heavy congested area , almost 200.000 cars per day
● No toll-booths, fully electronic free flow tolling system
● Tollway within a freeway: Motorists will be provided
with a choice of driving in non-tolled GP lanes or paying
a toll to bypass such GP lanes
● Tolls setting to ensure minimum speed on new lanes
● As demand grows and capacity becomes scarce, pricing
power increases
● Physically separated from the GP lanes with controlled
access
21% 52% 27%
FINANCIAL STRUCTURE
EQUITY DEBT PUBLIC FUNDS
Managed Lanes
69
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Financial Overview
− Total Investment: 2.05 bn
− Private Equity: 427 m
Cintra: 243 m (57%)Meridiam: 141 m (33%)DPFPS: 43 m (10%)
− Total Debt: 1.05 bn
PABs: 400 m TIFIA: 650 m
− Public Funds: 537 m
− Total Investment: 2.7 bn
− Private Equity: 665 m
Cintra: 339 m (51%)Meridiam: 282 m (42%)DPFPS: 44 m (7%)
− Total Debt: 1.47 bn
PABs: 615 m TIFIA: 850 m
− Public Funds: 496 m
Financial details Financial details
� First privately-financed road development project of its kind to reach financial close in 2010.
� Texas’ third big recent road project to reach financial close since 2008.
� First combination of TIFIA and tax exempt PABs.
� First un-wrapped bond issuance for a toll road.
� First time TIFIA allowed additional debt to be raised beyond its approved federal subsidy cap.
� First time that a U.S.-based pension fund made a direct investment in a highway concession.
21%21%21%
52%52%52%
27%27%27%
25%25%25%
54%54%54%
20%20%20%
Figures in US Dollars
Managed Lanes
70
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
• 9M ’ 1 1 R e s u l t s
• B u s i n e s s d e s c r i p t i o n
• I n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a d
• M a n a g e d L a n e s T o l l r o a d s
• 2 0 1 0 F u l l Y e a r R e s u l t s
•• 9M ’ 1 1 R e s u l t s 9M ’ 1 1 R e s u l t s
•• B u s i n e s s d e s c r i p t i o n B u s i n e s s d e s c r i p t i o n
•• I n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a dI n t r o d u c t i o n t o 4 0 7 E T R T o l l r o a d
•• M a n a g e d L a n e s T o l l r o a d sM a n a g e d L a n e s T o l l r o a d s
•• 2 0 1 0 F u l l Y e a r R e s u l t s2 0 1 0 F u l l Y e a r R e s u l t s
A p p e n d i xA p p e n d i xA p p e n d i x
71
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Profit & Loss
TOTALTOTAL VAR.VAR.LL--ff--LL(1)(1)
12,169
2,514
(1,000)
1,514
1,879
(1,725)
62
1,730
85
348
2,163
Net Revenue
EBITDA
Depreciations
EBIT
Disposals & impairments (2)
Net Financial Result
Equity accounted
EBT
Taxes
Minorities
NET PROFITNET PROFIT
+3%
+7%
-2%
+14%
+12%
(1): Like-for-Like: Excluding forex impact, perimeter variations and fair value adjustments (2) Included in EBIT at the statutory accounts
72
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Cash Flow ex-infra projects
Construction
Services
Toll Roads
Airports
Other
Taxes
TOTAL
OPERATING OPERATING CASH FLOWCASH FLOW
373
282
178
(12)
50
(60)
811
(38)
94
728
(83)
3
704
NET NET INVESTMENTINVESTMENT
1,5151,515
Remarkable cash flow generation
73
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Net debt evolution
-320-138
31146
-60
-420
1,124
178 120
573
Net debtDec´09
EBITDA Dividendsrecived
WK Taxes Investment Divestment Dividendspaid
Interest Other Net cashdec´10
EXEX--PROJECTSPROJECTS
-92
148
-211
355
-22
1,941
3,125
-1,972
-168-670
-1,161
N et debtD ec´09
EB IT D A WK T axes Investment D ivestment D iv idends Interest C apita l F o rex N C P H eldfo r sa le
Others N et debtdec´10
INFRA PROJECTSINFRA PROJECTS
21,11019,836
1,172
74
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Capital gains
Impairment / Fair value
BAA
Capital gain
Impairment / Fair value
Toll roads
Capital gain
Impairment / Fair value
Others
Capital gain
Impairment / Fair value
TOTAL
53
-734
-681
680
1,886
2,566
7
-13
-6
740
1,139
1,879
Disposals & impairments
DISPOSALS &DISPOSALS &IMPAIRMENTSIMPAIRMENTS
Naples airport, APP, US retail, other
LHR runway 3, Stansted runway 2, other
10% ETR, 60% Chile (completed transactions)
43% ETR, 40% Chile, other negative impairment
Tube Lines, other
Other
(+2,015) (+148) (-277)
75
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
+32 bps72.5%EBITDA %
+8%630EBITDA
+7%869Revenues
+16%132Indiana Toll Road2
+7%79Autema
-11%16Ocaña – La roda
+1%23M4
-8%20R4
-7%46Chicago Skyway
-7%54Ausol
+11%456ETR 4071
Toll roads
20102010 ∆∆%%LL--ff--LL
20102010
Financial
Revenues
• Growth driven by ETR407
ETR407 (L-f-L): Traffic: +6%, Revenue: +11%, EBITDA +14%
• €2.9bn new financing facilities in 2010
ETR (€1,263mn), LBJ (€1,190mn), Ausol (€489mn),
• Divestments of 10% ETR, Chile and M45
1 Full year figures. (Fully consolidated until September, last quarter equity consolidated)2 Full year 2010 equity consolidated
∆∆%%LL--ff--LL
76
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Domestic
International
+20%12,003Backlog
+56 bps7.2%EBIT %
+12%281EBIT
+54 bps10.5%EBITDA %
+9%410EBITDA
+3%3,896Revenues
• Growth at all levels
• Profitability improvement
• Highest ever backlog
• Strong cash flow generation (282mn)
• Divestments of Tube Lines and Swissport
62%
38%
Services
20102010 ∆∆%%LL--ff--LL
R e v e n u e sgeographical breakdown
77
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
Industrial
Civil works
76%
Non residentialResidential
+16%10,186Backlog
+10 bps 4.2%EBIT %
+1%191EBIT
-3 bps 5.1%EBITDA %
-2%231EBITDA
-1%4,525Revenues
International
Spain
65%
Construction
20102010 ∆∆%%LL--ff--LL
Work breakdown
B a c k l o g
Geographical breakdown
• Strong international growth offsets
Spanish decline
• High cash flow generation
(€373mn)
78
Investor Relations Department E-mail: [email protected] – Tel: +34 91 586 27 30
-2.8%103.9UK airports
+2.5%5.5Naples
-0.2%65.7Heathrow
-7.0%18.6Stansted
-7,1%17.9Scotland
-3.2%1.7Southampton
-2.5%109.4TOTAL
Airports
+131 bps45.5%EBITDA %
+8%1,272EBITDA
+5%2,794Revenues
20102010 ∆∆%%
20102010 ∆∆%%
Financial
Traffic
• Material increase in profitability
• Strong recovery in LHR traffic
Underlying traffic +3.4%
• Capital structure strengthened
GBP1.9bn new bonds & facilities
Sub-debt refinanced
No significant 2011 maturities
L-f-L
Underlying: Excluding closure of airspace due to ash from an Icelandic volcano, industrial action affecting British Airways' Heathrow operations and severe winter weather
INVESTOR RELATIONS DEPARTMENTC/ Príncipe de Vergara, 135
28002 MADRID (Spain)Tlf: +34 91 586 27 30Fax: +34 91 586 28 69e-mail: [email protected]
website: www.ferrovial.com
NO
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