ferrovial Investing for Growth FY 2014

Transcription

1 ferrovial Investing for Growth FY

2 2 Ferrovial Overview & Strategy

3 What is Ferrovial? Construction DESIGN & CONSTRUCTION Services MAINTENANCE EX-INFRASTRUCTURE PROJECTS Toll roads INFRASTRUCTURE PROJECTS OPERATION Airports Design, Financing, Construction, Operation & Maintenance of infrastructure assets & Provider of services to cities STRATEGY 1. CF Generation 2. Profitable Growth 3. Shareholder Remuneration 3

4 1. Cash Flow Generation million 2014 figures 349mn EBITDA from Construction 387mn EBITDA from Services EX-INFRASTRUCTURE PROJECTS Net cash position Non capital intensive / Backlog visibility / EPS accretive PARENT COMPANY Controlling Shareholder 43% Free float 57% 341mn Dividends from Airports 255mn Dividends from Toll roads INFRASTRUCTURE PROJECTS Ring fenced debt Capital intensive / Inflation protected / LT duration & financing 4

5 1. Cash Flow Generation: sources and uses million Sources & Uses 2014 figures BALANCED CONTRIBUTION 21% 31% 26% 22% Construction Service Toll Roads Airports OPERATING CASH FLOW Construction Services Toll Roads (dividends) Airports (dividends) Taxes & Other TOTAL (58) 1,076 c70% from UK, Canada & US Operating CF Other Investment Dividends & Buy-back Interests 5

6 2. Profitable growth. Solid Financial Situation million 2014 figures EX INFRASTRUCTURE PROJECTS NET CASH 1,632mn mn Net debt evolution ex-infrastructure projects ,172 1,547 1,987 3,064 1,484 1, PARENT COMPANY INFRASTRUCTURE PROJECTS TOLL ROADS* 7,509mn NET DEBT 7,862mn * 1,178mn related to R4 & OLR, both filed for creditor protection mn Debt maturities ex-infrastructure projects >2020 6

7 3. Shareholder remuneration (CF Criteria) per share 2014 million Evolution Scrip dividend equiv to 2013 complem dividend (Jul 14) Scrip dividend equiv to 2014 interim dividend (Nov 14) TOTAL dividend paid in Share buyback: 235mn Strong growth in shareholder remuneration (*) Scrip dividend Scrip dividend TOTAL dividend to be paid in Share buyback: up to 250mn % 7 (*) Based on a Ferrovial closing price of 20/02/2015:

8 Ferrovial today: 2014 Results 8

9 Toll roads million 2014 figures 255mn dividends from projects ETR 224mn, other assets 31mn Traffic growth across our portfolio Canada, US & Europe (Ireland, Portugal and Spain) 2014 % Revenues % EBITDA 257-7% NTE Managed Lanes opening 4 th Oct (9 months ahead of schedule) New project awarded: I77, North Carolina, US (Managed Lanes) Very active pipeline Bidding in US / Australia / Canada Monitoring of opportunities in other markets 3,6% Ausol (Spain) Traffic evolution 9,7% Algarve (Portugal) 4,0% M4 (Ireland) Dividends from projects

10 407ETR CAD million 407-ETR Traffic & EBITDA above expectations Dividend up by +7% Revenues +11% Traffic +3.4% Equity method, Ferrovial stake 43% NTE USD NTE 1-2 Texas 2014 figures 56.7% Global consolidation Traffic in line with expectations so far Double digit growth in monthly revenues Promotional tariffs 27,1X Net debt / EBITDA Average tariffs (peak hours) Segment 1 Segment 2 8,1X Q USD2.07 USD2.34 December 14 USD2.75 USD Dividends NTE tariff evolution (Seg.2 WB) Jan Dec Nov Oct Midnight 3am 6am 9am Noon 3pm 6pm 9pm 10

11 Services million 2014 figures 302mn operating cash flow (OCF) Largest division by revenues, EBITDA, OCF Strong growth in Spain & UK Combined organic growth +8.7% Enterprise integration completed Synergies and integration completed ahead of calendar New all-time high backlog mn (Including JV) Selective M&A 2014 % Revenues 4, % EBITDA % EBITDA % 8.8% = Backlog 22, % Performance by geography UK SPAIN +26% +53% +32% Revenues EBITDA Backlog +12% -3% +1% 164 Operating cash flow * Excluding forex impact, integration and restructuring costs

12 Construction million 2014 figures 236mn operation cash flow (OCF) Improved profitability Driven by Budimex (Poland) and Webber (US) Strong growth in Poland Backlog +41% 2014 % Revenues 3,942-3% EBITDA % EBITDA % 8.8% +40bp Backlog 8, % 298 Operating cash flow Budimex Order Backlog (PLNbn) Backlog by country 4,3 +41% 6,1 24% 18% 32% 9% 17% España Polonia USA Reino unido Resto 12

13 HAH (Equity method, FERROVIAL stake 25.0%) 100% GBP million 2014 figures GBP1bn dividend to shareholders (GBP670mn following AGS divestiture) Heathrow T2 opened June 4 th (c.350 flights per day) Heathrow capacity expansion proposals shortlisted for further analysis (Airports Commission) 2014 % Revenues 2,692 +9% EBITDA 1, %* EBITDA % 57.2% +180pb Net debt 12, % Highest ever passenger satisfaction (PAX million) Traffic FY 14 % Heathrow % Non regulated Airports (AGS): Ferrovial Airports acquires (50/50 with Macquarie Infrastructure Fund 4) 100% of Aberdeen, Glasgow and Southampton airports. Deal closed December 18 th 2014 EV GBP1,048mn Glasgow % Aberdeen % Southampton % Shareholders 25,00% 20,00% 12,62% 11,20% 11,18% 10% 10% 13.3mn passengers, +5.9% Ferrovial Qatar Brittania GIC Alinda CIC USS 13 (*) Excluding extraordinary expenses related to T2 opening

14 Thank you 14 Ferrovial Investor Relations Tel:

15 Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 15

16 407 ETR Location Area of expansion 407 East extension High density population area 407 Ring road of Toronto 108 km 16

17 407 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 are taken at entry and exit and invoices posted to registered car owner Tolls billed monthly 17

18 Fast Safe Reliable 407 ETR LOCATION Greater Toronto Area 23% of Canada population HIGH HOUSEHOLD INCOME 46% higher than Canada average SPEED Alternatives routes 40kph vs 100kph at 407 NO REGULATORY REVIEWS During concession life (99 years) TRAFFIC Alternatives routes are highly congested TOLL RATE HIGH FLEXIBILITY Including segment, direction, time of the day NON-STOP TOLL FACILITY Fully electronic with interchanges every 3km FAST Reliable travel times 18

19 407 ETR Cash flow and valuation overview Cash Generation ( ) 407 ETR Valuation (100%) million million Initial equity investment (62%) (326mn) Dividends (00-14) 1,275mn 10% disposal 640mn 100% pay-back in first 10 years 21x NET CASH IN 1,589mn Valuation x Dec'14 Maturity 2, years to maturity Strong dividend flow Equity valuation sharp increase 19 * Dec 2014 analysts consensus

20 407 ETR Financial overview ($CAD million) Revenues Capital Expenditure CAGR: 8.7% years to maturity OPEX Dividends CAGR: 4.3% % pay-back in first 10 years EBITDA Net Debt / EBITDA X % 77% 79% CAGR: 9.8% % 83% 83% 83% 82% 80% 76% Free-tariff revision 8% CAGR 02-15* 27.0X 8.1X * Tariff increase for light Vehicles in Peak hours regular zone (%)

21 Appendix Introduction to 407ETR Toll road Managed Lanes Toll roads 21

22 Managed Lanes New assets landmark Express Tollway within an Existing Highway Free Lanes Tolled Lanes Speed >50mph Free Lanes A solution to congestion on existing urban corridors by means of Active management of newly added capacity through tolling 22

23 Managed Lanes Level of demand NTE (untolled) 407ETR (tolled) Peak period Time of the day Westbound Eastbound Time of the day 23

24 Paying for predictability Travel time variability Time (min) Time (min) Free Flow Travel Mean 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 higher In some periods, the average travel time is double the free flow speed and can go up to almost minutes 24 Data Source: Travel Time Runs Seg 3a and 3b conducted Fall 2012

25 Toll rates tariff threshold Tariff threshold Toll Rate Toll Rate Cap 0.75 c/mi Speed Demand threshold Speed Threshold 3300 pce/h 2-lane sections 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 the cap TOTAL FREEDOM Freedom under the cap 25

26 Dallas and Fort Worth Regional Map Managed Lanes regional map LBJ NTE 1-2 NTE 35W 26

27 Managed Lanes North Tarrant Express Opened on October 4 th, 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 POLICY: 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 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 CINTRA Shareholder structure 57% 33% 10% Financial structure MERIDIAM 21% 52% 27% EQUITY DEBT PUBLIC FUNDS DALLAS FIRE&POLICE PENSION SCHEME 27

28 Managed Lanes Lyndon B Johnson Construction expected to be concluded in 2015 Key characteristics DESCRIPTION: IH 635 (Dallas County), the most populous county in Texas 108Km Electronic toll LENGTH: CONCESSION PERIOD: 13 mile section of the IH 635 and IH 35E 52 years TARIFF POLICY: 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 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 CINTRA Shareholder structure 51% 42% 7% MERIDIAM Financial structure 25% 54% 20% DALLAS FIRE&POLICE PENSION SCHEME EQUITY DEBT PUBLIC FUNDS 28

29 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 TARIFF POLICY: 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 50% 26% 14% 10% CINTRA Shareholder structure APG Financial structure MERIDIAM 32% 59% 9% EQUITY DEBT PUBLIC FUNDS DALLAS FIRE&POLICE PENSION SCHEME 29

30 Managed Lanes Financial Overview Figures in US Dollars Total Investment: 2.10 bn 2.80 bn 1.41 bn Private Equity: Cintra: Meridiam: DPFPS: APG: 21% 427 m 243 m (57%) 141 m (33%) 43 m (10%) 24% 672 m 343 m (51%) 285 m (42%) 44 m (7%) 31% 430 m 216 m (50%) 60 m (14%) 43 m (10%) 112 m (26%) Total Debt: 52% 1,102 m 56% 1,582 m 60% 847 m PABs: TIFIA: 398 m 704 m 606m 976 m 274 m 573m Public Funds: 27% 573 m 19% 490 m 9% 126 m First combination of TIFIA and tax exempt PABs. First private activity bond issuance for a toll road. First time that a U.S.-based pension fund made a direct investment in a highway concession. First privately-financed road development project of its kind to reach financial close in Texas third big recent road project to reach financial close since 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. 30

31 Ferrovial today: 2014 Results 31

32 FY 2014 Results million Income Statement Revenues JUN 14 FY 14 FY 13 Var% LfL% FY 14 FY 13 VAR.% LfL% Revenues EBITDA EBITDA margin Period depreciation EBIT 8, % , % % 5.2% 5.3% 7.2% 3.5% 3.2% Construction Airports Toll Roads Services Others Total 3, , ,802 EBITDA 4, , , FY 14 FY 13 VAR.% LfL% EBIT margin Disposals & Impairments Financial results Equity-accounted affiliates EBT Corporate income tax 8.4% % Construction Aeropuertos Toll Roads Services Others Total Construction backlog Services backlog Operating Indicators FY 14 8,091 22, DEC , VAR% CONSOLIDATED NET INCOME Discontinued operations Minorities NET INCOME ATTRIBUTED % Traffic evolution ETR-407 (VKT) Chicago Skyway (ADT) Ausol I (ADT) Ausol II (ADT) M4 (ADT) Heathrow (million passengers) AGS (million passengers) FY 14 2,436,888 4, ,711 13,989 26, FY 13 2,356,343 41,251 11,307 13,629 25, VAR%

33 Diversified portfolio million 2014 figures Ex Infrastructure Projects Infrastructure Projects Services Construction Toll Roads Airports Non Capital Intensive PROFIT GENERATION CASH GENERATION Fully consolidated Method 983Mn EBITDA Capital Intensive LONG DURATION LONG TERM VALUE Proportional (1) 1,688Mn Services Toll Roads 26% -1% 36% 28% 19% Construction Airports 24% 39% 29% 35% Spain 25% UK 22% US & Canada 19% RoW 19% Spain 44% UK 28% US & Canada 9% RoW 33 (1) Proportional: All EBITDA figures are aggregated in a proportional basis to the Ferrovial equity stake in each company or project (mainly ETR 407 toll road in Canada and UK airports).

34 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. 34