Ferrovial is a leading infrastructure company based in Spain. The document provides an overview of Ferrovial's business segments and key financial information. It summarizes that in the first half of 2014, Ferrovial experienced growth across most of its business segments, including a 25.7% revenue increase in services and double digit EBITDA growth at its airports division. Ferrovial also has record backlogs in construction and services of over 26 billion euros and maintains a strong financial position with over 3.7 billion euros in liquidity and a net cash position excluding infrastructure projects.
2. 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
Companyâs communications and periodic filings made with the relevant securities markets regulators and, in
particular, with the Spanish Securities Markets Regulator.
2 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
3. Agenda
Group overview
Looking Ahead
Appendix
2014 â First Half results
Introduction to 407ETR Toll road
Managed Lanes Toll roads
2013 â Full year results
3 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
4. Ferrovial Business Overview
INFRASTRUCTURE
PROJECTS
âŹ219mn
Dividends from Airports
PARENT COMPANY
Ring fenced debt
EXCL INFRA PROJECTS
Net cash position
âŹ343mn
EBITDA from Construction
4 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
Leading European airport operator
Ownership and manager of 4 UK
airports, including Heathrow
Leading sponsor of tollroads
infrastructure development
worldwide
Key developer of ETR 407
Design, build, finance operation
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
âŹ242mn
Dividends from Toll roads
âŹ322mn
EBITDA from Services
2013 figures
5. Debt Overview
Net debt evolution ex-infra projects
3,064
1,987
1,547
1H â14
NET CASH
âŹ1,599mn
PROJECTS Debt allocated at project level
1H â14
5 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
1,172
31
907
1,484 1,663 1.599
2006 2007 2008 2009 2010 2011 2012 2013 1H14
EX PâRIONJFERCAT SPROJECTS
âŹmn Net debt
NTE 667
LBJ 929
NTE 3A3B 65
TOTAL 1,661
TOLL ROADS*
âŹ6,835mn
Projects under development not generating EBITDA
= 23%
of Toll roads
net debt
NET DEBT
âŹ7,162mn
* âŹ1,163mn related to R4 OLR, both filed for creditor protection
âŹmn
âŹmn
6. No meaningful maturities until 2018
Financial position (ex-infra projects)
2014-2019 maturities
⏠million - June â14
44 42 19 11
Liquidity position
6 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
501
5
510
2014 2015 2016 2017 2018 2019 2019
2.767
3.752
986
Total cash Undrawn lines Total liquidity
⏠million - June â14
7. 2014 Overview (up to June)
Group Services largest division by revenues, EBITDA and OCF
Operations
Financial
Highest ever backlog, âŹ26bn (Construction Services)
Volume and profitability expansion (Services)
Traffic growth across the portfolio
Credit rating upgrade by Fitch (from BBB- to BBB)
10y corporate bond issued in July (coupon 2.5% )
âŹ1.6bn Net cash* / âŹ3.8bn Liquidity
Active pipeline in greenfield projects
Investment to grow
Financial discipline to invest
Future
7 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
21. Construction
No global or volume ambitions
Competitive tool for infrastructure
projects
2014 (H1):
⢠Improvement in Cash Flow
⢠New contracts to be included in the next few
months, worth c.âŹ1.1bn
⢠International growth to partially offset Spanish
decline
⢠Poland - Infra roads plan 2014-19, âŹ10.0bn
⢠Spain â Higher Public bidding (+76%)
⏠million
21 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
Operating Cash Flow
1H 2013 1H 2014
-41
Backlog by geography
71% 29%
-191
International Domestic
EspaĂąa
29%
USA
35%
Polonia
R.Unido 13%
6%
Chile
5%
CanadĂĄ
3%
Otros
9%
22. 100% GBP million
22 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
HAH
1H2014 Î% LfL
Traffic
1H2014 Î% LfL
Heathrow 35.1 +1.9%
Scotland 5.3 +8.2%
Southampton 0.8 +5.7%
Total HAH 41.1 +2.5%
HAH (Equity method, FERROVIAL stake 25.0%)
Revenues 1,319 +7.2%
EBITDA 710 +12.1%
EBITDA % 53.8% +230 bps
NET DEBT 13,129 +3.5%
Terminal 2 at Heathrow (The Queenâs
Terminal) was opened to traffic on 4 June.
Heathrowâs proposal for third runway
shortlisted for further analysis (Airports
Commission)
Highest ever passenger satisfaction
2014 (H1)
⢠Double digit EBITDA growth
⢠Heathrow: traffic up 1.9% driven by
intercontinental demand
(PAX million)
Shareholders
25.00% 20.00% 13.29% 11.88% 11.18% 10.0% 8,65%
Ferrovial Qatar Brittania GIC Alinda CIC USS
23. Heathrow - Best ever passenger satisfaction
63%
81%
2007 1H 2014
23 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
40
19
2007 1H 2014
48%
79%
2007 1H 2014
Over 79% of passengers surveyed rated their experience as
Excellent or very good
Missed bags
per 1,000 passengers
% passengers rating
Heathrow âExcellentâ or
âVery goodâ
Departures
punctuality
25. Agenda
Group overview
Looking Ahead
Appendix
2014 â First Half results
Introduction to 407ETR Toll road
Managed Lanes Toll roads
2013 â Full year results
25 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
26. 407 ETR
Would you buy this company�
775 1,937
-1,694 5,759
CAN million
Accounting
losses
High
debt
26 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
1999:
27x
Debt/Ebitda
1999
2013
Shareholderâs Equity Net debt
27. 407 ETR
Ferrovial bought this companyâŚ
Initial equity investment (62%) (326mn)
Dividends (00 - 13) 1,051mn
10% disposal 640mn
NET CASH IN 1,691mn
100% pay-back
in first 10 years
Valuation x20
Strong dividend flow
Equity valuation sharp increase
2,098
* June â14 analysts consensus
27 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
525
10.485
20x
1999 2014 Jun
407 ETR
84 years to maturity
⏠million
Cash Generation
(1999-2013)
Valuation
(100%)
⏠million
Maturity
28. 407
High density population area
Ring road of Toronto
108 km
407 ETR
Location
407
28 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
East extension
Area of expansion
29. 407 ETR
All Electronic Roadside Tolling System
Sophisticated electronic toll highway
NO toll-booths, âclosed ticketâ 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 are taken at entry and exit and
invoices posted to registered car owner
Tolls billed monthly
29 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
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
30 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
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
33. Agenda
Group overview
Looking Ahead
Appendix
2014 â First Half results
Introduction to 407ETR Toll road
Managed Lanes Toll roads
2013 â Full year results
33 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
34. âExpress Tollway within an Existing Highwayâ
Free
Lanes
A solution to congestion on âexisting urban corridorsâ
by means of
Active management of ânewly added capacityâ through tolling
34 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
Free
Lanes
Tolled Lanes
Speed 50mph
Managed Lanes
New assets landmark
35. 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
Westbound
Eastbound
35 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
Time of the day
Peak period
Managed Lanes
Level of demand
NTE (untolled) 407ETR (tolled)
36. Paying for predictability
Travel time variability
Travel Time Variability
Time (min)
70
60
50
40
30
20
10
0
NB AM NB MD NB PM SB AM SB MD SB PM
⢠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 â 60 minutes
Time (min)
36 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
Data Source: Travel Time Runs Seg 3a and 3b conducted Fall 2012
Free Flow Travel
Mean
NB - North bound SB - South bound
37. Toll rates â tariff treshold
Tariff treshold
37 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
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
39. Shareholder structure
CINTRA MERIDIAM
39 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
DALLAS
FIREPOLICE
PENSION SCHEME
Key characteristics
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
â Heavy congested area, almost 250,000 cars per day
â No toll-booths, fully electronic free flow tolling
system
â 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
â Tolls setting to ensure minimum speed on new lanes
â As demand grows and capacity becomes scarce,
pricing power increases
â 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%
40. 40 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
Key characteristics
Shareholder structure
CINTRA MERIDIAM
DALLAS
FIREPOLICE
PENSION SCHEME
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
â Heavy congested area, almost 200,000 cars per day
â No toll-booths, fully electronic free flow tolling
system
â 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
â Tolls setting to ensure minimum speed on new lanes
â As demand grows and capacity becomes scarce,
pricing power increases
â 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%
41. Key characteristics
Shareholder structure
50% 14% 10%
APG
CINTRA MERIDIAM
41 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
DALLAS
FIREPOLICE
PENSION SCHEME
DESCRIPTION:
LENGTH:
CONCESSION PERIOD:
TARIFF POLICY:
2 âmanaged lanesâ 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
â The corridor south to the 3A segment is currently
ranked as the most congested roadway in Texas.
â No toll-booths, fully electronic free flow system
â 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
â Tolls setting to ensure minimum speed on new lanes
â As demand grows and capacity becomes scarce,
pricing power increases
â Physically separated from the GP lanes with
controlled access
32% 59% 9%
EQUITY DEBT PUBLIC FUNDS
Managed Lanes
North Tarrant Express 35W
26%
Financial structure
42. 25%
54%
20%
⢠First privately-financed road
development project of its kind to
reach financial close in 2010.
⢠Texasâ third big recent road project
to reach financial close since 2008.
Managed Lanes
Financial Overview
21%
52%
27%
⢠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.
Figures in US Dollars
42 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
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:
43. Agenda
Group overview
Looking Ahead
Appendix
2014 â First Half results
Introduction to 407ETR Toll road
Managed Lanes Toll roads
2013 â Full year results
43 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
46. Diversified portfolio
Services Construction Toll Roads Airports
Non Capital Intensive
PROFIT GENERATION
CASH GENERATION
Fully consolidated Method
âŹ934Mn
30% 20%
(1) Proportional: All EBITDA figures are aggregated in a proportional basis to the Ferrovial equity stake in each company or project.
46 E-mail: ir@ferrovial.es â Tel: +34 91 586 27 30
Capital Intensive
LONG DURATION
LONG TERM VALUE
Proportional (1)
âŹ1,681Mn
EBITDA
FY´13
Services
Toll Roads
Construction
Airports
33%
37%
29%
32%
19%
41%
Spain
17%
UK
17%
US
25%
RoW
22%
Spain
43%
UK
24%
US
11%
RoW
Ex â Infrastructure Projects Infrastructure Projects