2. 2 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
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.
3. 3 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Agenda
G r o u p o v e r v i e w
2 0 1 4 – F i r s t Q u a r t e r r e s u l t s
L o o k i n g A h e a d
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
A p p e n d i x
4. 4 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
INFRASTRUCTURE
PROJECTS
PARENT COMPANY
EXCL INFRA PROJECTS
Leading sponsor of tollroads
infrastructure development
worldwide
Key developer of ETR 407
Design, build, finance & operation
Leading European airport operator
Ownership and manager of 4 UK
airports, including Heathrow
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
Capital intensive / Inflation protected / LT duration & financing
Controlling Shareholder 43%
Free float 57%
Non capital intensive / Backlog visibility / EPS accretive
Ring fenced debt
Net cash position
Ferrovial Business Overview
€242mn
Dividends from Toll roads
€219mnDividends from Airports
€322mn
€343mn
EBITDA from Construction
EBITDA from Services
2013 figures
5. 5 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
How to manage
Financially
Low level
of corporate
debt
Asset rotation
to support
growth
Efficient
asset
allocation
Operational
value
generation
Operationally
6. 6 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Debt Structure
Net debt evolution ex-infra projects
3,064
1,987
1,547
1,172
31
907
1,484 1,663 1.565
2006 2007 2008 2009 2010 2011 2012 2013 1Q14
Debt allocated at project level
NET CASH
€1,565mn
P R O J E C T S
E X – I N F R A P R O J E C T S
Net debt (€mn)
€mn Net debt
NTE 614
LBJ 986
NTE 3A3B 52
TOTAL 1,652TOLL ROADS*
Net debt €6,775mn
Projects under development
not generating EBITDA
23%
of Toll roads
net debt
NET DEBT
€7,091mn
* €1,153mn related to R4 & OLR, both filed for creditor protection
Q1 ‘14
7. 7 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
53 38 20 11
501
4
507
2014 2015 2016 2017 2018 2019 >2019
No meaningful maturities until 2018
Financial position (ex-infra projects)
2014-2019 maturities
Liquidity position
€ million - March ‘14
2,739
3,620
881
Total cash Undrawn lines Total liquidity
8. 8 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
7.5 7.5
7.2
18.1
2005 1Q2014
Services
Construction
Strong Backlog (Construction & Services)
Backlog at Record levels
Strong backlog of €25.6bn as of 1Q2014 (40 months of activity)
(€bn)
International
25.6
14.7
+74%
38% 67%
Construction
Services
33%
67%
Domestic
International
30%
70%
Domestic
International
9. 9 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Highlights (2014 year to date)
Financial New liquidity Facility (€750mn)1
€25bn backlog (Construction & Services)Operations3
€1.6bn Net cash / €3.6bn LiquidityCash Position
ex-infra projects
New managed lanes (I77)Future2
4
10. 10 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Business Overview
Airports
Toll roads
Services
Construction
Focus on quality service and cost control
Higher traffic due to load – factor
Q6 (2014-2018) New regulatory period
Focus on greenfield projects
New concession award (USA) – I77 “managed lanes”
Integration of Enterprise acquisition (UK)
Focus on cash flow and growth
No global or volume ambitions
Competitive tool for complex infrastructure projects
12. 12 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Agenda
G r o u p o v e r v i e w
2 0 1 4 – F i r s t Q u a r t e r r e s u l t s
L o o k i n g A h e a d
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
A p p e n d i x
13. 13 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Revenues 91 -5.3%
EBITDA 55 -2.1%
EBITDA % 60.3%
Toll roads
1Q2014 ∆%
L-f-L
•Pipeline
Active bidding in the US / Australia / Canada
Selective monitoring of opportunities in Chile,
Peru, Colombia, Mexico, Croatia, Ireland & UK.
•Traffic recovery in Ireland and Portugal and
stabilising in Spain
•New projects awarded
I77, North Carolina, US (“managed lanes”)
US$655mn. 50 years concession
•Revenue and EBITDA growth, +11%, at
407ETR combining traffic growth (+3,2%)
and tariff increase
1 Financial asset
2 Equity method
*Ausol II Traffic
Ausol* (Spain) -0.4% -3.7%
Algarve (Portugal) +6.2% +15.8%
M4 (Ireland) +4.2% +6.0%
ETR 4072
+3.2% +11.0%
Chicago skyway2
-5.2% -4.2%
1Q 2014 EBITDA∆%
L-f-L
€ million
Traffic
17. 17
Robust medium-term pipeline
Amey Prospects pipeline
Client segment Year of award Nature 1)
Total: EUR 15.7B
19%
25%
21%
20%
15%
2014
20%
2015
44%
2016
20%
> 2017
16% 19%
81%
1) Projects with total revenues above EUR 12M per annum
Source: Ferrovial Services
Environment
Local
Government
Social
Utilities
Industrial
Transport
Newly
Outsourced
Other
18. 18 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
FS Top 3
TRANSPORT SOCIAL CORPORATEENVIRONMENTAL
UK Infrastructure Services market: c. EUR 54BN (2012)
24. 24 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Agenda
G r o u p o v e r v i e w
2 0 1 4 – F i r s t Q u a r t e r r e s u l t s
L o o k i n g A h e a d
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
A p p e n d i x
25. 25 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Looking ahead
C O N S T R U C T I O N
S E R V I C E S
T O L L R O A D S
A I R P O R T S
Margin vs. growth
Strong backlog
Selective growth in existing &
new markets
Dividends from 407 & HAH
Attractive pipeline of projects
Co-investment with financial
partners
Strong financial discipline
26. 26 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Net cash position
(2018 & 2021 main maturities)
Highest everDividend generation
24% 43% 22% 11%
EBITDA*
* 2013 (proportional consolidation)
Strong
Backlog
International
diversification
Solid Financial
Position
High Quality
Assets
Why Ferrovial?
28. 28 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Agenda
G r o u p o v e r v i e w
2 0 1 4 – F i r s t Q u a r t e r r e s u l t s
L o o k i n g A h e a d
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
A p p e n d i x
29. 29 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
775 1,937
-1,694 5,577
Figures in $CAN million
Accounting
losses
High
debt
Shareholder's fund Net debt
1999:
27x
Debt/Ebitda
1999
2013
407 ETR
Would you buy this company…?
30. 30 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
V a l u a t i o n
( 1 0 0 % )
Strong dividend flow
Equity valuation sharp increase
Initial equity investment (62%) (326mn)
Dividends (00 - 13) 1,051mn
10% disposal 640mn
NET CASH IN 1,691mn
2098
M a t u r i t y
100% pay-back
first 10 years
Valuation x18
* December´13 analysts consensus
1999 2013*
18x
9,536
525
407 ETR
C a s h g e n e r a t i o n
(1999 – 2013)
84 years to maturity
407 ETR
Ferrovial bought this company…
Figures in € million
31. 31 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
High density population area
Ring road of Toronto
108 km
407
407
East extension
Area of expansion
407 ETR
Location
33. 33 E-mail: ir@ferrovial.es – 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% higher
than Canada average
NO REGULATORY
REVIEWS
During concession
life (99 years)
SPEED
Alternatives routes
40kph vs 100kph 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
Fast
Safe
Reliable
35. 35 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
300
200
500
300
400
300
350
400
200 200
2009 2009 2010 2010 2010 2010 2011 2012 2012 2013
10 11
510
287
311
14 14
313
184
2013 2014 2015 2016 2017 2018 2019 2020
Yearly average maturity: Only 3% of total debt
CAD 2,950mn issued since 2009
3,49%
3,58%
1,58%
1,70%
1,56% 1,60%
1,39%
3
5
9
30 30
40
39
2009 2009 2010 2011 2012 2012 2013
Maturity
Spread
Extending maturities at historically low cost
years
407 ETR
ETRRecurrent presence in the bond market (June’13)
36. 36 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Agenda
G r o u p o v e r v i e w
2 0 1 4 – F i r s t Q u a r t e r r e s u l t s
L o o k i n g A h e a d
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
A p p e n d i x
37. 37 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
A solution to congestion on “existing urban corridors”
Active management of “newly added capacity” through tolling
by means of
Free
Lanes
Free
Lanes
Tolled Lanes
Speed >50mph
“Express Tollway within an Existing Highway”
Managed Lanes
New assets landmark
38. 38 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
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
407ETR
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)
Managed Lanes
Level of demand
NTE
39. 39 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Time(min)
• Free flow time of 14 minutes at 6.00AM
• The average travel time during all time periods is significantly higher
• In some periods, the average travel time is double the free flow speed and can
go up to almost 50 – 60 minutes
0
10
20
30
40
50
60
70
NB AM NB MD NB PM SB AM SB MD SB PM
Travel Time Variability
Time(min)
Data Source: Travel Time Runs Seg 3a and 3b conducted Fall 2012
Paying for predictability
Travel Time Variability
Free Flow Travel
Mean
NB - North bound SB - South bound
40. 40 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
Toll rates – tariff treshold
Toll Rate Cap 0.75 c/mi
Demand threshold 3300 pce/h
2-lane sections
Speed Threshold 50 mi/h
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 the cap TOTAL FREEDOM Freedom under the cap
Speed
Demand
Toll Rate
42. 42 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
CINTRA MERIDIAM
DALLAS
FIRE&POLICE
PENSION SCHEME
KEY CHARACTERISTICS
SHAREHOLDERS’ STRUCTURE
108Km
Electronic 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
● 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
FINANCIAL STRUCTURE
EQUITY DEBT PUBLIC FUNDS
Managed Lanes
Lyndon B Johnson
51% 42% 7%
25% 54% 20%
43. 43 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
CINTRA MERIDIAM
DALLAS
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
● 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
FINANCIAL STRUCTURE
EQUITY DEBT PUBLIC FUNDS
Managed Lanes
North Tarrant Express
57% 33% 10%
21% 52% 27%
44. 44 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
50% 14% 10%
CINTRA MERIDIAM
DALLAS
FIRE&POLICE
PENSION SCHEME
KEY CHARACTERISTICS
SHAREHOLDERS’ STRUCTURE
DESCRIPTION:
LENGTH:
CONCESSION PERIOD:
TARIFF POLICY:
2 “managed lanes” in each direction of the IH-35W, segments
3A and 3B (3B segment to be built by TxDOT)
10.2 mile section (segments 3A 6.2 miles and 3B 4 miles)
48 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
● The corridor south to the 3A segment is currently
ranked as the most congested roadway in Texas.
● No toll-booths, fully electronic free flow 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
32% 59% 9%
FINANCIAL STRUCTURE
EQUITY DEBT PUBLIC FUNDS
APG
Managed Lanes
North Tarrant Express 35W
26%
45. 45 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
• 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%
52%
27%
25%
54%
20%
Figures in US Dollars
Managed Lanes
Financial Overview
32%
59%
9%
• Very competitive capital structure
in spite of the difficult market
conditions.
• Strong portion of the debt from
TIFIA program with its flexible
amortizing structure during the
first 25 years.
2.05 bn
427 m
243 m (57%)
141 m (33%)
43 m (10%)
1,050 m
400 m
650 m
537 m
2.70 bn
665 m
339 m (51%)
282 m (42%)
44 m (7%)
1,465 m
615 m
850 m
496 m
1.36 bn
430 m
215 m (50%)
167 m (39%)
43 m (10%)
4 m (1%)
805 m
274 m
531 m
127 m
Total Investment:
Private Equity:
Cintra:
Meridiam:
DPFPS:
APG:
Total Debt:
PABs:
TIFIA:
Public Funds:
50. 50 E-mail: ir@ferrovial.es – Tel: +34 91 586 27 30
(1) Proportional: All EBITDA figures are aggregated in a proportional basis to the Ferrovial equity stake in each company or project.
Diversified portfolio
Ex – Infrastructure Projects Infrastructure Projects
Services Construction Toll Roads Airports
Non Capital Intensive
PROFIT GENERATION
CASH GENERATION
Fully consolidated Method
€934Mn
Proportional (1)
€1,681Mn
Capital Intensive
LONG DURATION
LONG TERM VALUE
EBITDA
FY´13
Services
Toll Roads
Construction
Airports
33%
37%
30% 20%
29%
19%
32%
41%
Spain
17%
UK
17%
US
25%
RoW
22%
Spain
43%
UK
24%
US
11%
RoW